SBI Home Loan Hike Buying a home is already stressful enough. You’re juggling savings, paperwork, and that constant worry about whether you can actually afford it. And just when you think you’ve locked things in, SBI the country’s largest public sector bank—has hiked its home loan interest rates. SBI Home Loan interest rate 2025
So if you’re planning to take a loan, or already paying one, let’s break down what this really means for you
SBI Home Loan Interest Rate – What Changed?
From August 1, 2025, the State Bank of India (SBI) revised its loan rates. While the RBI kept the repo rate unchanged at 5.55%, SBI decided to increase the upper band of home loan rates.
| Loan Type | Previous Rate | Current Rate |
|---|---|---|
| Regular Home Loan (Term Loan) | 7.50% – 8.45% | 7.50% – 8.70% |
| MaxGain Home Loan (OD) | 7.75% – 8.70% | 7.75% – 8.95% |
| Top-Up Loan | 8% – 10.50% | 8% – 10.75% |
| Loan Against Property (P-LAP) | 9.20% – 10.50% | 9.20% – 10.75% |
| Reverse Mortgage | 10.55% | 10.55% |
| YONO Insta Top-Up Loan | 8.35% | 8.35% |
Impact on Home Loan EMI
Here’s how this increase plays out in real life:
- If you borrow ₹50 lakh for 20 years:
- At 8.45% (old rate): EMI = ₹43,233; Total Payment ≈ ₹1.03 crore
- At 8.70% (new rate): EMI = ₹44,026; Total Payment ≈ ₹1.05 crore
That’s an extra ₹737 every month. And stretched across 20 years, you’ll pay around ₹1.9 lakh more in interest.
Why Did SBI Increase Home Loan Rates?
SBI links its loans to two key factors:
- CIBIL Score: A strong score can still get you closer to the lower interest rate.
- External Benchmark Linked Rate (EBLR): Currently at 8.15%, this rate allows banks to adjust spreads for credit risk.
In short, SBI raised rates to cover credit risks. For the bank, it’s safety. For customers, it’s higher monthly payouts.
FAQs on SBI Home Loan Hike
- When did the new SBI Home Loan rates start?
The revised rates took effect from August 1, 2025. - Will existing borrowers pay more EMI?
Yes. If your loan is linked to the floating rate (EBLR), your EMI will increase. - Can I transfer my loan to another bank?
Yes, you can switch if another lender offers better terms. Just check the processing costs. - What’s the lowest SBI Home Loan rate now?
It remains 7.50%, but that’s usually available only for borrowers with excellent credit profiles. - Should I delay buying a home after this hike?
If your budget is already stretched, waiting could be wise. But if the home is a priority, plan carefully and calculate your EMI before committing.
