State Bank of India hikes interest rate on Home Loan

State Bank of India, the country's largest lender, on Monday hiked interest rates on home loans by as much as 0.50 per cent on May 23, 2022. For the second time in a week, the bank raised interest rates. Following the hike, the EBLR stood at 7.5 per cent. The lending rate (RLLR) has risen to 6.65 per cent. The new interest rates will come into effect from June 1, 2022, the bank said.

Today, SBI hiked home loan rates by 0.50%. According to SBI's website, the external lending rate (EBLR) has risen to 7.5 per cent. The lending rate (RLLR) has risen to 6.65 per cent. Earlier, the interest rate on external debt (EBLR) was 6.65 per cent and the repo-linked lending rate (RLLR) was 6.25 per cent. Credit risk premium (CRP) is added by the bank to both EBLR and RLLR loan rates for home loans and auto loans.

Last week, SBI had hiked its lending rate (MCLR) by 0.10 per cent. The new loan rate was implemented from May 15, 2022. Following the hike, the bank's MCLR has come down to 6.85 per cent. The MCLR has been increased to 7.20 per cent for one year, 7.40 per cent for two years and 7.50 per cent for three years. After this interest rate hike, new loans will become more expensive. The loan installment is also likely to increase.