SBI hikes risk premium on floating rate home loans, effective rates go up
For SBI home loans linked to repo rate up to ₹30 lakh, the effective rate, which is EBR (external benchmark rate) plus spread, now stands at 7.40%
The country's largest lender SBI has increased the risk-premium it charges on home loan rates that are linked to repo rate, making the effective rates higher. The revision by SBI comes just a month after it had reduced home loan rates by 75 basis points. For home loans up to ₹30 lakh, the effective rate, which is EBR (external benchmark rate) plus spread, now stands at 7.40% as against 7.20% on April 1, 2020. The new rates came into effect from May 1, as per information available on its website. The EBR remains unchanged at 7.05%.