SBI Hikes Home Loan Interest Rates from August 1: How Does It Compare with Other Banks?
The State Bank of India has revised its home loan interest rates starting August 1, 2025. This is expected to impact new borrowers and possibly existing floating-rate customers.
The change comes shortly after the Reserve Bank of India (RBI) kept its key repo rate unchanged at 5.55% during the August monetary policy review.
What Are the Revised SBI Home Loan Interest Rates?
As per the latest update, SBI’s regular home loan interest rate now ranges between 7.50% and 8.70%. The upper band has increased by 25 basis points, from the earlier cap of 8.45%. The lower end of 7.50% remains unchanged.
This hike may slightly increase the EMIs (equated monthly instalments) for borrowers depending on their credit score, loan amount, and repayment tenure.
How Do Other Banks Compare to Revised SBI Home Loan Interest Rates?
Here’s a look at the current home loan interest rates at some major banks:
| Bank | Starting Interest Rate | Interest Rate Range | Key Details |
| HDFC Bank | 7.90% | NA | Applies to home purchase, balance transfer, renovation, and extension loans |
| ICICI Bank | 7.70% |
| Rate depends on loan amount and employment type |
| Kotak Mahindra Bank | 7.99% | NA | 12% fixed rate for existing customers switching from floating rate |
| Bank of Baroda | 7.45% | 7.45% – 9.20% | Rate depends on credit score and loan size; 0.05% extra without credit insurance |
| Punjab National Bank | 7.45% | NA | Rates vary by loan amount, credit score (CIBIL), and repayment period |
| Canara Bank | 7.40% | 7.40% – 10.25% | Offers widest interest range; based on borrower profile and loan conditions |
What Does This Mean for Borrowers?
If you’re planning to take a home loan now, the higher interest rate will raise your borrowing cost. This means:
- Higher EMIs
- Interest burden rises over the loan tenure
- Greater impact on monthly finances for long-term loans
However, it is important to note that your credit score (CIBIL) and loan amount will play a big role in deciding the final interest rate offered by the bank.
Read more: Minimum Balance Rules: RBI Leaves It to Banks, Here’s What You Should Know.
Conclusion
SBI’s decision to raise home loan interest rates despite no change from the RBI signals a cautious approach to lending. Borrowers should compare offers from multiple banks before applying and ensure they understand the total cost of the loan.
Disclaimer: This blog has been written exclusively for educational purposes. The securities mentioned are only examples and not recommendations. This does not constitute a personal recommendation/investment advice. It does not aim to influence any individual or entity to make investment decisions. Recipients should conduct their own research and assessments to form an independent opinion about investment decisions.
Published on: Aug 18, 2025, 10:23 AM IST
- 8th Pay Commission: When Is the Last Date to Submit Questionnaire Responses?
- EPFO Higher Pension: Government Outlines Steps to Resolve Pending PF Claims
- NPS e-Shramik: PFRDA Allows Platform Workers to Contribute ₹99 Without Fixed Limits
- SBI Bank Locker ₹50 Lakh Jewellery Theft: How Much Will the Bank Pay if Your Valuables Are Stolen?
- EPFO Issues Over 1.49 Lakh Pension Orders for Higher Contributions: How to Verify Claims
Related Articles
Enjoy ₹0 Account Opening Charges
Get the link to download the App
