Skip to main content

SBI Raises Home Loan Interest: How It Compares With Other Leading Lenders

 On 17 August 2025, the State Bank of India (SBI)—India’s largest mortgage lender—raised the upper band of its home loan interest rates by 25 basis points, effective 1 August 2025, elevating it from 8.45% to 8.70%, while maintaining the lower limit at 7.50%. This change comes amid the RBI’s decision to hold the repo rate steady at 5.55% during its August monetary policy review.



What Does This Mean for Borrowers?

For prospective home loan applicants, this adjustment translates to higher borrowing costs and potentially increased EMIs, depending on their credit profile and the interest rate band they fall into.

Current Home Loan Rates at Major Banks

BankInterest Rate Range
SBI7.50% to 8.70% (new upper limit)
HDFC BankStarting from 7.90% (home, balance transfer, renovation, extension)
ICICI Bank7.70% onwards (₹5 crore loans); varies by profile and loan size (8.75% to 9.80%)
Kotak Mahindra BankStarting 7.99%; floating-to-fixed switch at 12%
Bank of Baroda (BoB)Ranks between 7.45% to 9.20%, subject to CIBIL score and loan amount
Punjab National Bank (PNB)Starts at 7.45%; depends on amount, CIBIL, and tenure
Canara Bank7.40% to 10.25% range
Union Bank of IndiaAlso raised rates in tandem with SBI; reaffirms sector trend.


Broader Market Implications

This move by SBI is seen as a bellwether shift, signaling a possible broader upswing in home loan rates among public sector banks. Union Bank of India has already followed suit.

Despite recent RBI repo rate cuts totaling 100 bps since February 2025, August’s hold suggests a pause in easing policy — and SBI’s hike could mark a turning point in lending trends

Summary

  • What happened? SBI increased its upper home loan interest rate to 8.70%, effective 1 August 2025—lower limit unchanged at 7.50%.

  • Why it matters: Borrowing costs rise for new applicants; EMI impacts vary by individual credit profiles.

  • How others compare: HDFC (7.90%), ICICI (7.70%+), PNB and BoB (~7.45%), Canara (up to 10.25%); trends suggest more hikes ahead.

  • Wider context: Signifies shift in housing finance sector; Repo rate was held at 5.55%.


Comments

Post a Comment

Popular posts from this blog

NSDL IPO GMP Live Update: Should You Subscribe to India’s Largest Depository’s Public Issue?

NSDL IPO GMP Live Update: Should You Subscribe to India’s Largest Depository’s Public Issue? đź“Ś Introduction: NSDL IPO Opens to Public — A Historic Moment for India’s Financial Markets The much-anticipated NSDL IPO opened for public subscription on July 30, 2025 , and entered its second day  with strong investor interest. Backed by India's biggest financial institutions and commanding a dominant market position, the ₹4,011 crore IPO of National Securities Depository Limited (NSDL) is drawing attention from retail and institutional investors alike. đź’Ľ IPO Details: Key Facts You Need to Know IPO Size : ₹4,011 crore Type : 100% Offer for Sale (OFS) Price Band : ₹775 – ₹800 per share Lot Size : 18 shares Minimum Investment (Retail) : ₹13,680 Subscription Dates : July 30 to August 1, 2025 ⚠️ Note: Since it is an Offer for Sale, NSDL will not receive any proceeds. Funds go to existing shareholders exiting partially, including SBI, NSE, HDFC Bank, IDBI Bank, a...
Post a Comment
Read more

Market Analysis 15 Oct 2024

  Good Morning Friends.   We have seen fresh buildup with short covering and bank nifty build good data.   we need to focus on all support areas to have good intraday play.  52050/52240 will be an immediate area to retest with gap-up opening and 51700/51500 have good base with huge put writing as support.  Nifty has good support at 25080/50 and a good chance to retest 25220/269 areas.  Now let’s see how intraday things develop.
Post a Comment
Read more

Shares of Bandhan Bank rose 9% today.

Shares of Bandhan Bank rose over 9 per cent in the Friday trading session after the Reserve Bank of India (RBI) approved the appointment of Partha Pratim Senagupta as MD & CEO of the private lender. The company made the announcement via an exchange filing after market hours on Wednesday.  The RBI has earlier granted permission to Partha Pratim Sengupta to appoint him as Managing Director and Chief Executive Officer of the bank for three years from the date of his assumption of office, not later than November 10, 2024, the lender said in its exchange filing. Partha Pratim Sengupta is an experienced banker with nearly four decades of experience in the banking industry. He has worked in a variety of settings, in retail and corporate banking. He has also served as deputy director and chief credit officer of the bank’s State Bank of India (SBI). He then took up the post of Managing Director & CEO of Indian Foreign Bank. Shares of Bandhan Bank Ltd rose 9.15% to Rs 204.90 on Frida...
Post a Comment
Read more