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SBI Home Loan Rate Hike: SBI has revised home loan interest rates effective August 1, 2025. This impacts borrowers with higher EMIs.
SBI hikes home loan interest rate by 25 bps.
SBI Home Loan Interest Rate Hike: The State Bank of India (SBI) has revised its home and home-related loan interest rates effective from August 1, 2025. As per the report of Economic Times, regular home loans (term loans) will now be available in the range of 7.50% to 8.70%.
The bank has raised the upper band of interest rates by 25 basis points. Earlier, SBI’s home loan interest rates ranged between 7.50% and 8.45%, but now they stand between 7.50% and 8.70%. This means the lower limit remains unchanged, while the upper limit has been increased.
New rates are effective from 1st August 2025.
SBI’s home loan rate hike came on the heels of RBI’s decision to keep the repo rate unchanged at 5.55 per cent in the latest MPC meeting in August.
The Max gain overdraft facility will attract interest rates ranging from 7.75% to 8.95%. Top-up loans have become relatively costlier, with rates between 8.00% and 10.75%, and overdraft top-up loans fixed at 8.25% to 9.45%. Loan against property (P-LAP) now comes at 9.20% to 10.75%, whereas reverse mortgage loans are fixed at 10.55%. SBI has also kept the YONO Insta Home Top-Up Loan at 8.35%.
The bank has clarified that all home loan rates remain linked to the External Benchmark Lending Rate (EBLR), which currently stands at 8.15%.
How SBI’s Hike May Impact Borrowers
SBI’s decision to raise the upper limit of home loan interest rates from 8.45% to 8.70% will directly impact borrowers opting for loans at the higher end of the band. While the lower limit remains unchanged at 7.50%, those whose credit profile or loan category places them near the upper slab will now face slightly higher EMIs and overall repayment burden. Even though the hike is just 25 basis points, the effect over long tenures can be significant.
For example, on a Rs 30 lakh loan with a 20-year tenure, the EMI at 8.45% was about Rs 25,830. At the new rate of 8.70%, the EMI rises to Rs 26,278 — a difference of around Rs 450 every month. Over the loan’s lifetime, this translates into an additional outgo of more than Rs 1 lakh. Borrowers with larger loans, say Rs 50 lakh or above, will see the impact magnified further. This makes homeownership costlier, especially for new buyers stretching their budgets.
A borrower takes a home loan of Rs 30 lakh for 20 years.
-
Earlier Rate (8.45%)
EMI ≈ Rs 25,830
Total repayment ≈ Rs 61.99 lakh -
New Rate (8.70%)
EMI ≈ Rs 26,278
Total repayment ≈ Rs 63.06 lakh
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A team of writers and reporters decodes vast terms of personal finance and making money matters simpler for you. From latest initial public offerings (IPOs) in the market to best investment options, we cover al… Read More
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