The country’s largest lender, the State Bank of India (SBI), revised its mortgage rate to 6.95% effective April 1. With this revision, the plan’s lowest rate of 6.70% for a limited period ended on March 31. According to information published on its website, the new rate as of April 1 is 6.95%, news agency PTI reports. SBI’s hike in the minimum mortgage rate will likely encourage other lenders to follow suit.
The bank not only increased the minimum interest rate from April, but added processing fees on all home loans. SBI is expected to charge 0.40 percent of the loan plus GST subject to a minimum of ₹10,000 and a maximum of ₹30,000 plus GST as a processing fee.
Last month, SBI waived home loan processing fees until March 31 to take advantage of the festive fervor. During the limited period, the bank offered a mortgage from 6.70% for loans up to ₹75 lakh and 6.75% for loans of the order of ₹75 lakh ₹5 crores.
The lender also granted a 100% waiver on the processing fee. The interest concession was based on the loan amount and the borrower’s CIBIL score.
On the eve of International Women’s Day, a special concession of 5 basis points was made available to borrowers.
Last month, SBI said its home loan portfolio of ₹The 5 lakh crore was the largest, making it a market leader in the segment.
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