SBI Hikes Home Loan Interest Rates by 25 bps

Aug 18, 2025 - The State Bank of India (SBI), India’s largest mortgage lender, has raised the upper band of its home loan interest rates for new customers by 25 basis points to 8.70% from its earlier level of 8.45%. It has, however, kept its lower limit of the home loan rate unchanged.

This move comes despite the Reserve Bank of India’s rate cuts. Interest rates at other public sector banks now range from 7.35% to 10.10%.

The SBI hike is expected to especially impact new customers with low credit scores and those taking a term loan at the higher end of the interest range.