Home Loan: The country's largest bank has made home loans more expensive, buying a house will become more difficult..

SBI Interest Rates: India's largest public sector bank, SBI, has given a big shock to its customers. The bank has increased the interest rates on home loans. State Bank of India has increased the interest rates by 25 basis points. The interest rate, which was earlier between 7.5 percent and 8.45 percent, has now increased from 7.5 to 8.70 percent. The bank has announced an increase in the interest rate of the upper band. This will make it expensive for the common man to buy a home. Buying a home will become more difficult.

This increase will mostly affect those people whose credit score is low. Because the bank has increased the upper limit of its loan rates. Apart from SBI, Union Bank of India has also increased its rate, and in the coming time, other public sector lenders can also do so. However, these banks are increasing interest rates at a time when the Reserve Bank of India has continuously cut the repo rate. Barring the last meeting, this year, the RBI has continuously cut the repo rate. You will get these cars in less than 10 lakh budget, with 6 airbags and strong mileage.
At the end of July, SBI's home loan rates were between 7.5% to 8.45%. Now, after the change, new borrowers will have to pay an interest rate of 7.5% to 8.70%. At the same time, Union Bank of India has also increased its rate from 7.35% to 7.45% at the end of July. Neither the banks nor the email sent on this increase. In comparison, private lenders like HDFC Bank, ICICI Bank and Axis Bank currently start giving home loans from 7.90%, 8% and 8.35%.

Who will have to pay more interest?
According to ET's report, a person associated with the matter said that SBI has changed the rates on the basis of CIBIL score and External Benchmark Lending Rate (EBLR). This is a low return product for us, so we have decided to increase the margin on new loans for customers with low credit scores. This change will apply only to new customers and will not affect the old loans worth ₹8 lakh crore. Home loans have the largest share in SBI's retail loan portfolio. Private banks have been criticizing this aggressive pricing strategy of public sector lenders for a long time.

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