SBI revised home loan rates: State Bank of India (SBI), which is the largest public sector lender, has increased its basic lending rates and MCLR effective from today (December 15) by 35 bps and 25 bps across tenures. This would mean that EMIs across all term loans, like home loans, business loans, personal loans, will go up.
Since May, the Reserve Bank of India has increased the repo rate by 225 bps to tame the high inflation. With the aggressive pace of rate hikes, most lenders have been forced to tweak their home loan rates and increase the EMI amount as there is limited headroom to extend the repayment period further.
However, SBI is still offering some concessions for its customers. As per its website, SBI will be offering concessions on some of the schemes in the range of 15 bps to a maximum of 30 bps for a limited period as part of its ongoing festive offer. One basis point is equal to 1/100th of 1 per cent, or 0.01 per cent.
Customers who will avail of home loans from December 15 to January 31, 2023, will pay an interest of 8.75 per cent as compared to the general floor rate of 8.90 per cent.
SBI’s MCLR
SBI has increased its marginal cost of funds-based lending rates (MCLR) by 25 bps across tenures. With this, the bank’s one-year MCLR now stands at 8.30 per cent, while for 3 years, it stands at 8.60 per cent.
Tenor-wise MCLR effective from December 15, 2022
| Tenor | Existing MCLR (In %) | Revised MCLR (In %) |
| Over night | 7.60 | 7.85 |
| One Month | 7.75 | 8.00 |
| Three Month | 7.75 | 8.00 |
| Six Month | 8.05 | 8.30 |
| One Year | 8.05 | 8.30 |
| Two Years | 8.25 | 8.50 |
| Three Years | 8.35 | 8.60 |
SBI external benchmark lending rate
As per the SBI website, from today (December 15), the EBLR (external benchmark lending rate) will be 8.90 per cent + credit risk premium (CRP) + BSP. The total hike is of 35 bps from the previous rate of 8.55 per cent.
The revised repo-linked lending rate is 8.50 per cent plus CRP as compared to the earlier 8.15 per cent, which is again a 35-bps hike.
Home loan rates offered by SBI
SBI offers home loans based on CIBIL score. In its revised festive offer, SBI said, “Floor Rate: 15 bps lower than EBR (i.e., 8.75 per cent), EBR at present- 8.90 per cent."
For a CIBIL score greater or equal to 800, the bank is offering a concession of 15 bps to customers. The revised rate under the festive offer is 8.75 per cent instead of the normal rate of 8.90 per cent.
For credit scores between 750 and 799 points, home loans have a concession of 25 bps. The current rate is now 8.75 per cent from the general rate of 9 per cent. Further, for credit scores between 700 and 749, home loans have a concession of 20 bps to 8.90 per cent from their normal rate of 9.10 per cent.
The rates are unchanged for those whose credit scores lower than 700 points. The rate is 9.20 per cent from a score of 650 - 699, and for scores of 550 - 649, it is 9.40 per cent.
It added that the rates are inclusive of a 5bps concession available to women borrowers. Besides, these rates are available for salary account holders for Privilege, Shaurya & Apon Ghar as well.
Top-up home loans
There is a concession of 15 bps each on credit scores from 700 to equal to or greater than 800 on top-up loans.
Under the revised festive offer from December 15, top-up loans have an interest rate of 9.15 per cent on credit scores of greater or equal to 800 instead of 9.30 per cent.
For credit scores of 750 – 799¸ the new rate is 9.25 per cent instead of 9.40 per cent. The revised rate is at 9.35% on scores of 700 -749 from the normal rate of 9.50 per cent. For the other scores and slabs, the rates are unchanged.
Processing Fee
SBI has waived the processing fees under the festive offer on home loans and top-up loans. But it will be charging Rs 10,000 plus applicable GST on the loan against the property.