Will home loans get costlier? SBI lending rates hiked 10 bps: See current rates

State Bank of India (SBI), India’s largest state-run bank, has recently increased interest rates on loans by 10 basis points, effective from Thursday, August 15, 2024.
SBI’s Marginal Cost of Funds Based Lending Rate (MCLR) for a three-year tenor is now 9.10%, compared to 9% earlier. Overnight MCLR is now 8.20%, compared to 8.10 previously. The bank had raised its MCLR previously by up to 30 basis points in some tenors since June 2024.
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All types of loans, including home loans can potentially get costlier since the MCLR has now been hiked.
The current interest rates for SBI home loans are as follows:
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The Reserve of India (RBI) had flagged concerns due to banks and NBFCs not following prudential norms when it comes to top-up home loans. This was combined with the fact that there was a high growth in personal loans, especially in home equity or top-up loans in the housing segment.
As a result, other PSU banks including Bank of Baroda, Canara Bank, and UCO Bank had hiked their MCLR. SBI has joined the bandwagon now.
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