The country’s largest bank SBI has increased its minimum interest rate of home loan by one fourth percent (25 basis points). Now this rate has increased from 6.70 to 6.95 per cent. This interest rate has come into effect from 1 April 2021. After this step of SBI, there has also been a possibility of increasing the minimum interest rates of home loans from other banks. It is also indicating that in the coming days all the rates of home loan may increase.
Processing fees added to all home loans
The bank has not only increased the minimum interest rate but has also added processing fees on all home loans. This rule has come into force from 1 April 2021. SBI can charge up to 0.40 with the loan as processing fee. This amount can be minimum 10 thousand and maximum 30 thousand rupees. On March 1, 2021, SBI reduced the home loan minimum interest rate from 6.80 to 6.70 percent. However, this offer of the bank was a special offer to attract home buyers.
How much will the processing fee be?
However, SBI has clarified that processing fees in builder-tie-up projects which do not require title investment reports and valuations will be 0.40 per cent of the total loan amount. It will not be more than ten thousand rupees and GST. Where a title investment report is required, the normal charge will be charged in the same manner as before. The bank had banned home loan processing fees till 31 March 2021.
Other banks can also follow the footsteps of SBI.
Last month, SBI said that its home loan portfolio is worth Rs 5 lakh crore. It is the largest home loan portfolio in the country. SBI claims he is the market leader in this segment. There is also a possibility of raising the rates of other home loans from SBI. If SBI increases other home loan rates, then HDFC Bank, ICICI Bank and Bank of Baroda can also increase home loan interest rates.
Full emphasis on attracting sovereign wealth and pension funds, the government took these special steps
Real returns from FDs may remain low, those dependent on bank deposits will have to bear the loss- Report