SBI Home Loan Interest Rates: SBI hikes home loan interest rates: Check how much your EMI will go up


After the Reserve Bank of India (RBI) raised the repo rate by 50 basis points to 4.90 percent last week many banks have hiked their lending and deposit rates, the latest to join is SBI. The bank has increased the minimum interest rate for home loans to 7.55 percent.

The latest increase means that the minimum rate for a borrower with a credit score of more than 800 under the regular home loan scheme is now at 7.55%.

According to the bank’s website, the lender has also increased its External Benchmark-based Lending Rate (EBLR) to a minimum of 7.55 percent, up from 7.05 percent previously. However, the risk premium will be added depending on the credit score.

With effect from June 15, 2022, SBI has revised the marginal cost of fund based lending rates (MCLR) by up to 0.20 percent.

The benchmark one-year MCLR rate has been raised to 7.40 percent from 7.20 percent previously. The majority of consumer loans, including auto, home, and personal loans, are tied to the MCLR.

Borrowers with a credit score of 800 or higher will pay a minimum interest rate of 7.55 percent on regular home loans. The risk premium is nil in this case. The CIBIL score determines the risk premium; the lower the credit score, the higher the risk premium rate.
The interest rate for a credit score between 750 to 799 will be 7.65 percent, here the risk premium is 10 basis points. Women borrowers will get a 0.05% discount on these loans.

Once the reset date arrives, borrowers will be obligated to pay the higher interest rates on their loans i.e; higher EMI or will get their loan tenure extended if there is a scope of it. If you have an SBI house loan, the following table shows how much your EMI would rise as a result of the recent interest rate hike.

If your home loan is for Rs 35 lakh, the new 7.55 percent interest rate applies if your CIBIL score is 800 or higher.

Loan Amount (Rs)35,00,000
Tenure (Years)20
Interest Rate (%)7.05
Old EMI (Rs)27241
New Interest rate (%)7.55
New EMI (Rs)28303
Increase in EMI (Rs)1,062

If your home loan is for Rs 70 lakh, the new 7.55 percent interest rate applies if your CIBIL score is 800 or higher.

Loan Amount (Rs)70,00,000
Tenure (Years)20
Interest Rate (%)7.05
Old EMI (Rs)54481
New Interest rate (%)7.55
New EMI (Rs)56606
Increase in EMI (Rs)2125

If your home loan is for Rs 35 lakh, the new 7.55 percent interest rate applies if your CIBIL score is 750-799

Loan Amount (Rs)35,00,000
Tenure (Years)20
Interest Rate (%)7.15
Old EMI (Rs)27451
New Interest rate (%)7.65
New EMI (Rs)28518
Increase in EMI (Rs)1,067

If your home loan is for Rs 70 lakh, the new 7.55 percent interest rate applies if your CIBIL score is 750-799

Loan Amount (Rs)70,00,000
Tenure (Years)20
Interest Rate (%)7.15
Old EMI (Rs)54903
New Interest rate (%)7.65
New EMI (Rs)57035
Increase in EMI (Rs)2132



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