State Bank of India, the country's largest lender, today raised its home loan rates to 10.10 per cent from 9.95 per cent earlier, the bank announced today. (Also read: 5 things to do before applying for a home loan)
This interest rate applies to all loans up to Rs. 30 lakh.
Interest rates for loans above Rs. 30 lakh, which earlier stood at 10.10 per cent, were also revised upwards. They now stand at 10.30 per cent. (Also read: 4 lesser-known facts about home loans)
Car loans were also revised from 10.45 per cent to 10.75 per cent.
The bank today also revised its base rate - the rate below which it cannot lend - by 10 basis points to 9.8 per cent.
A revision in the base rate directly impacts the interest rate of home, auto and personal loans. The bank did not announce any change in the interest rate of personal loans.
The bank also raised its long term deposit rates by up to 25 basis points.
Interest rates for deposits from seven days to 179 days have been increased from 6.5 per cent to 7.5 per cent; for deposits of 180-210 days, rates have been revised from 6.5 per cent to 6.8 per cent; for 211 days to less than a year, rates now stand at 7.5 per cent, up from 6.5 per cent, while rates for deposits of one year up to 10 years now stand at 9 per cent, up from 8.75 per cent.
SBI is the first major state-run bank to hike lending rates after short-term rates rose as a result of the Reserve Bank of India's liquidity tightening moves announced in July.
A senior bank official said the decision to increase rates was taken by the asset liability committee, which met late last evening.
"There has been an increase in our cost of funds and the pressure will only increase further as we enter the festive season, which increases the requirement for liquidity," the official told PTI.
This interest rate applies to all loans up to Rs. 30 lakh.
Interest rates for loans above Rs. 30 lakh, which earlier stood at 10.10 per cent, were also revised upwards. They now stand at 10.30 per cent. (Also read: 4 lesser-known facts about home loans)
Car loans were also revised from 10.45 per cent to 10.75 per cent.
The bank today also revised its base rate - the rate below which it cannot lend - by 10 basis points to 9.8 per cent.
A revision in the base rate directly impacts the interest rate of home, auto and personal loans. The bank did not announce any change in the interest rate of personal loans.
The bank also raised its long term deposit rates by up to 25 basis points.
Interest rates for deposits from seven days to 179 days have been increased from 6.5 per cent to 7.5 per cent; for deposits of 180-210 days, rates have been revised from 6.5 per cent to 6.8 per cent; for 211 days to less than a year, rates now stand at 7.5 per cent, up from 6.5 per cent, while rates for deposits of one year up to 10 years now stand at 9 per cent, up from 8.75 per cent.
SBI is the first major state-run bank to hike lending rates after short-term rates rose as a result of the Reserve Bank of India's liquidity tightening moves announced in July.
A senior bank official said the decision to increase rates was taken by the asset liability committee, which met late last evening.
"There has been an increase in our cost of funds and the pressure will only increase further as we enter the festive season, which increases the requirement for liquidity," the official told PTI.
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