Home loan interest rates are at an all time low especially since the outbreak of coronavirus. Banks and financial institutions have dropped the interest rates on home loans. The major reason for the dip in interest rates is that RBI slashed repo rate to 4%. Any change in repo rate affects the EBR, i.e. external benchmark rate. If you didn’t know interest rates of home loans in banks are linked to EBR. Now you must be wondering how to change SBI home loan interest rate now that you have the option. Don’t fret! I am here to help you know all your answers on SBI Home loan interest rate change.
How to change interest rate in SBI home loan?
If you have opted for floating rate of interest in SBI then rate of interest will get revised if
There are changes in Base Rate
The bank decided to reduce or increase the EMI thereby revising the interest rate
You can go to the bank and submit the request to migrate to the new interest rate structure. The existing home loan account holders in SBI have to pay one time switch over fee which amounts to Rs. 5000 plus taxes. The interest rates change at quarterly interval.
If you are a new home loan borrower, SBI is offering three additional benefits and an interest rate of 6.80%. The additional benefits are -
No processing fee
0.10% interest concession for borrowers with high CIBIL score for loans between Rs. 30 lakh and Rs. 1 crore
Additional 0.5% concession for applying via SBI's Yono app
A colleague of mine told me that the majority of banks, including the State Bank of India, provide floating-rate home loans at the External Benchmark Lending Rate (EBLR). This is why borrowers can do SBI home loan change interest rate. I was just as confused as you might be. Let me tell you more about it in simple terms.
What is Home Loan Interest Rate Change SBI?
EBLR is a new structure for interest rates. SBI and many other banks now set the interest rates on all home loans with variable rates based on the External Benchmark or EBLR.I think one of the best advantages of EBLR is that our loan interest rate will adjust accordingly in the next quarter, with regard to any changes that the Reserve Bank of India declares on repo rates. EBR is a transparent loan pricing scheme as well.
How to Change Home Loan Interest Rate in SBI?
Existing SBI home loan borrowers are given the choice to convert to the current interest rate, which is based on the repo rate.
A one-time switchover fee + GST is required from the consumer for this. There is a one-time switchover charge of Rs. 1000 plus taxes.
The interest rate will be adjusted if you have chosen SBI's fluctuating rate of interest.
To switch to the new interest rate structure, you can visit the bank and make the necessary request.
The current 8.40% p.a. interest rate for SBI home loans is based on the external benchmark rate (EBR), which is connected to the repo rate of the Reserve Bank of India (RBI). The EBR will fluctuate with any changes to the repo rate.
Can Existing Borrowers Avail the Benefits of the New Interest Rate?
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How to Change SBI Home Loan Interest Rate?
Kanupriya
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September 16, 2021
2021-09-16T10:47:00+00:00 2024-02-28T22:27:31+00:00Comment
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