The largest public sector lender, State Bank of India (SBI), has hiked its basic lending rates and MCLR by 35 basis points and 25 basis points across tenures (December 15). This would result in higher EMIs for all term loans, including personal, business, and mortgage loans.
The RBI has increased the repo rate by 225 basis points since May to lower excessive inflation. Most lenders have been compelled to adjust their house loan rates and increase the EMI amount due to the rapid rate hikes because there is limited headroom to prolong the repayment time further.
SBI is still giving its clients specific discounts, though. According to SBI's website, as part of its ongoing seasonal offer, SBI would provide discounts on a few programs ranging from 15 bps to a maximum of 30 bps for a short time. One basis point, or 0.01 percent, equals one-hundredth of one percent.
Customers who take out house loans between December 15 and January 31, 2023, will pay 8.75 percent interest instead of the 8.90 percent floor rate.
SBI's MCLR
SBI has raised its MCLRs (marginal cost of funds-based lending rates), which cover all tenures, by 25 bps. As a result, the bank's MCLR for one year is now 8.30 percent, and for three years, it is 8.60 percent. Effective as of December 15, 2022, MCLR by a tenor.
SBI external benchmark lending rate
According to the SBI website, the EBLR (external benchmark lending rate) would be 8.90 percent + credit risk premium (CRP) + BSP as of December 15. The overall increase from the previous rate of 8.55 percent is 35 basis points. In addition, the updated repo-linked lending rate, which was previously 8.15 percent plus CRP, is now 8.50 percent plus CRP, a 35-bps increase.
Home loan rates offered by SBI
SBI provides mortgage loans based on CIBIL ratings. "Floor Rate: 15 bps lower than EBR (i.e., 8.75 percent), EBR at present- 8.90 percent," SBI stated in its updated holiday offer. Customers might receive a 15 bps discount from the bank if their CIBIL score is 800 or higher. Instead of the standard rate of 8.90 percent, the lowered rate under the holiday offer is 8.75 percent.
Home loans come with a 25 bps discount for credit scores between 750 and 799. From a general rate of 9 percent, the current rate is currently 8.75 percent. Additionally, home loans have a discount of 20 basis points (bps) to 8.90 percent from their standard rate of 9.10 percent for credit scores between 700 and 749.
For individuals with credit scores under 700, the rates remain the same. However, for scores between 550 and 649, the rate is 9.40 percent, and between 650 and 699, it is 9.20 percent.
It was added that the rates also include a 5bps reduction for female borrowers. Additionally, holders of Privilege, Shaurya, and Apon Ghar salary accounts can also take advantage of these rates.
Top-up home loans
Credit scores from 700 to 800 or above are each given a 15 basis point discount for top-up loans. In addition, top-up loans have an interest rate of 9.15 percent instead of 9.30 percent under the updated holiday offer, which takes effect on December 15.
The new rate is 9.25 percent rather than 9.40 percent for credit scores of 750 to 799. On scores of 700 to 749, the revised rate is 9.35% as opposed to the usual rate of 9.50%. The rates are the same for the other scores and slabs.
Processing Fee
As part of its holiday promotion, SBI has removed the processing fees for home loans and top-up loans. However, on loan against the property, it will charge Rs 10,000 plus any relevant GST.