SBI hikes minimum interest rate on home loans to 7.55 pc

The country’s largest lender State Bank of India has hiked the minimum interest rates for home loans to 7.55 per cent effective Wednesday.

The move follows a 50 basis points hike in repo rate to 4.90 per cent by the Reserve Bank of India (RBI) last week. In May also RBI had hiked repo rate by 40 basis points.

The lender has hiked its External Benchmark-based Lending Rate (EBLR) to a minimum of 7.55 per cent effective today as compared to 7.05 per cent earlier, as per the bank’s website.

The lender also adds a credit risk premium over the EBLR.

The bank has increased its Marginal Cost of funds-based Lending Rate (MCLR) by 20 basis points effective June 15.

On Tuesday, SBI hiked the interest rates by up to 20 basis points on domestic term deposits of below Rs 2 crore for select tenors.

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.

Likewise, for domestic term deposits of 1 year to less than 2 years, customers can earn an interest of 5.30 per cent, up by 0.20 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.

The lender has also revised the interest rates on domestic bulk term deposits of Rs 2 crore and above for select tenors by up to 75 bps.

For tenors of 1 year to less than 2 years, customers having bulk deposits will earn an interest of 4.75 per cent from 4 per cent earlier, with effect from June 14, 2022.

Another state-owned lender Bank of Baroda (BoB) on Wednesday announced a hike in its fixed deposit interest rates on domestic term deposits including Non-Resident Ordinary (NRO) and Non Resident External (NRE) term deposits of below Rs 2 crore by up to 40 basis points.

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These rates are applicable with effect from June 15, 2022, the lender said in a release.

For domestic term deposits of above 1 year to up to 400 days, the rates have been revised to 5.45 per cent from 5.20 per cent earlier, the release said.

Deposits maturing beyond 2 years to up to 3 years will now fetch an interest rate of 5.50 per cent from 5.20 per cent earlier, BoB said.

IDBI Bank has also increased its interest rate by up to 25 basis points (bps) on retail term deposits of less than Rs 2 crore from Wednesday.

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