SBI's big blow to the dreams of home buyers! Home loans increased despite the relief in the repo rate from the RBI

Home Loan Interest Hikes SBI: Even in July, SBI's interest rate range was 7.50% to 8.45%. After this new change, now new customers will have to pay interest from 7.50% to 8.70%.

SBI Hikes Home Loan Interest: The country's largest government bank has given a blow to the dreams of people planning to buy a house. State Bank of India (SBI) has decided to increase interest rates on home loans. The bank has increased the upper band of interest rates by 25 basis points. Earlier SBI's home loan interest was between 7.50% to 8.45%, but now it has increased to between 7.50% to 8.70%. That is, the lower limit has been kept the same, while the upper limit has been increased.

It is worth noting that even in July, SBI's interest rate range was 7.50% to 8.45%. After this new change, new customers will now have to pay interest ranging from 7.50% to 8.70%.

SBI shock to home buyers

At the end of July, Union Bank of India also increased the interest rates from 7.35% to 7.45%. At the same time, among private banks, ICICI is providing home loans at 8%, HDFC at 7.90% and Axis Bank at 8.35% minimum interest rate.

This increase has been made by the bank at a time when RBI is constantly trying to give relief to the people by reducing the repo rate. This move of SBI will especially affect those customers whose credit score is low, because the upper interest rate limit has been increased.

Applicable only to new customers

It is believed that after SBI, other public sector banks can also take such a step soon. According to ET report, this change will currently be applicable only to new home loan customers. It is worth noting that RBI is keeping a close watch on accelerating India's GDP amid the global uncertainty over tariffs. For this reason, the repo rate was cut three times in a row to provide relief to the people. People get indirect benefit of the reduction in repo rate by RBI, because after this the banks reduce the interest rates on all types of loans including home loans.