After Lending Rates, SBI Raises Minimum Rate For Home Loans To 7.55%

The State Bank of India (SBI) on Wednesday said it has raised the minimum rate for home loans to 7.55 percent from June 15.

This comes after India's largest lender on Tuesday had raised its deposit and lending rates.

SBI said interest rates have been raised by 0.20 per cent on domestic term deposits below Rs 2 crore for select tenors.

The lender last hiked deposit rates in February, according to the data available on its website.

The revised interest rates on retail domestic term deposits (below Rs 2 crore) come into effect from June 14, 2022, SBI said on its website. For deposits of 211 days to less than 1 year, the lender will offer interest rate at 4.60 per cent, as against 4.40 per cent earlier. Senior citizens will be offered an interest of 5.10 per cent as against 4.90 per cent earlier. 

For domestic term deposits of 1 year to less than 2 years, customers can earn interest of 5.30 per cent, up by 0.20 per cent. For senior citizens, the interest rate will be higher by a similar margin at 5.80 per cent.

On tenor of 2 years to less than 3 years, SBI has raised the interest rate to 5.35 per cent from 5.20 per cent, while senior citizens can earn 5.85 per cent as against 5.70 per cent earlier.

For tenors of 1 year to less than 2 years, customers having bulk deposits will earn interest at 4.75 per cent from 4 per cent earlier, with effect from June 14, 2022. For senior citizens, the new rate will be 5.25 per cent as against 4.50 per cent.

The Reserve Bank of India (RBI) had last week hiked the repo rate by 0.50 per cent to 4.90 per cent. Repo is the short-term lending rate RBI charges to the banks.

SBI has also revised by up to 0.20 per cent the marginal cost of fund-based lending rates (MCLR) with effect from June 15, 2022.