Home loan EMIs to get costlier as banks increase lending rates
New Delhi : Days before the Reserve Bank of India announces its bi-monthly monetary policy, top banks of the nation have increased their lending rates on Home loans by 5-10 basis points.
SBI, the country's largest lender, increased its one-year MCLR from 8.45% to 8.50%. For an amount of Rs30 lakh, the bank will now provide home loan at 8.70-8.85%, up from 8.65%-8.80%.
ICICI Bank Ltd has increased its six-month MCLR from 8.50% to 8.60% and one-year MCLR to 8.65% from 8.55%. The bank offers home loan on both six-month and one-year MCLR. The spread on the home loan from the bank ranges between 30-90 bps depending on the type of loan, type of borrower and the loan amount.
HDFC is providing home loan at 8.80-8.85% for loan amount up to Rs30 lakh, up from 8.70-8.75%. In the last two policy review, the central bank increased repo rate by 25 basis points each.
The Reserve Bank of India is likely to increase the rate during the Friday review as well.