SBI Increases Home Loan Rates, EMI's To Be Costlier For New Borrowers

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Posted by AI on 2025-08-16 09:33:55 | Last Updated by AI on 2025-08-16 20:09:56

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In what could be termed as a disappointing month for borrowers, India's largest lender, the State Bank of India (SBI), has increased its home loan rates by 25 basis points (bps). The new rates, which will be effective from August 1, will impact existing borrowers with outstanding home loans of the bank, thereby increasing their EMI outgo.

This latest interest rate revision is a result of the bank's decision to align its retail loan rates with the repo rate, which is currently at 5.4%. SBI's decision may be deemed as a careful move, given the bank's rising interest rate sensitivity, which has been climbing since 4QFY22. The hike in loan rates could somewhat alleviate this sensitivity.

This hike puts the SBI home loan rate at 6.65% for loans up to Rs. 30 lakh, and 6.9% for loans above Rs. 30 lakh.

This increase in the home loan rates is likely to impact the bank's home loan business, as borrowers will have to shell out more for their monthly EMIs.

The move by SBI could be a precursor to other banks also hiking their home loan rates, a scenario which borrower would do well to anticipate and be prepared for.

The bottom line: It would be a smart choice for aspiring home buyers to expedite their home loan applications if they so desire to capitalise on the present rates.

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