State Bank of India (SBI) has hiked the marginal cost of funds-based lending rate (MCLR) on 1-year tenure by 10 basis points for home loans and others. The new rates have come into effect from January 15. Notably, SBI currently offers a certain concession on home loans under its festive offer campaign which is scheduled to end on January 31, 2023.
As per SBI’s website, from January 15, MCLR on 1-year tenure is hiked to 8.4% from the previous 8.30%. MCLR on other tenures has been kept unchanged.
Hence, 2 years and 3 years MCLR stays at 8.50% and 8.60%. While 8% MCLR each is unchanged on one-month and three-month tenures. Overnight MCLR is unchanged at 7.85%.
Home loan rates:
Notably, the bank had launched a festive campaign over from October 4th just ahead of the Diwali festival. The offer will continue till January 31, 2023.
In this festive offer, the bank is currently offering a concession from 15 bps to 30 bps in various home loan categories. It needs to be noted that SBI’s home loan rates depend upon a borrower’s CIBIL score. The higher your credit score, the lower are interest rate on home loans.
Regular home loans including Flexipay, NRI, Non-salaried, Privilege/ Shaurya, Apon Ghar:
SBI is offering a concession of 15 bps to borrowers on home loans to borrowers with CIBIL score greater or equal to 800 – taking the rate to 8.75% from the normal rate of 8.90%. On credit scores from 750 – 799, home loans have a concession of 25 bps to 8.75% from their normal rate of 9%. Further, on credit scores of 700 -749, home loans have a concession of 20 bps to 8.90% from their normal rate of 9.10%.
However, the home loan rates on credit scores lower than 700 are unchanged. Hence, SBI’s rate is at 9.20% on credit scores from 650 – 699, at 9.40% on scores of 550 – 649, and at 9.10% on NTC/NO CIBIL/-1.
In its revised offer, SBI said, “Floor Rate: 15 bps lower than EBR (i.e. 8.75 %), EBR at present- 8.90%.” Also, it added that the rates are inclusive of a 5bps concession available to women borrowers and 5 bps concession. Further, these rates are available for salary account holders for Privilege, Shaurya & Apon Ghar as well.
The bank also added, “Premium of 10 bps for loans up to 30 lacs for LTV >80% & < =90% shall continue to be charged hitherto.”
Top-up home loans:
There is a concession of 15 bps each on credit scores from 700 to equal to or greater than 800 on top-up loans.
Under top loans have an interest rate of 9.15% on credit scores of greater or equal to 800 from the normal rate of 9.30%, while the rate is 9.25% on scores of 750 – 799 from the normal rate of 9.40%, and the rate is at 9.35% on scores of 700 -749 from the normal rate of 9.50%.
On credit scores below 700, the rates are kept unchanged. Hence, the bank continues to levy 9.60% on credit scores of 650 – 699; 9.90% on scores of 550 – 649; and 9.50% on NTC/NO CIBIL/-1 scores.
Loan Against Property:
SBI gives a concession of 30 bps on credit scores from 700 to equal to or greater than 800. Accordingly, the rate is at 10.35% versus the normal rate of 10.65% on CIBIL greater or equal to 800, while the rate is at 10.45% versus the normal rate of 10.75% on scores from 750 – 799 score; and the rate is at 10.55% versus the normal rate of 10.85% on scores of 700 -749.
Other rates are unchanged. The bank continues to impose 10.95% on credit scores of 650 – 699; 11.05% on 550 – 649 scores; and 10.85% on NTC/NO CIBIL/-1 scores.