SBI hikes risk premium on floating rate home loans by 20 bps

The government-run lender State Bank of India has raised the premium it charges over its external benchmark rate (EBR) by 20 basis points for floating rate home loans with effect from May 1. It’s EBR has remained pat at 7.05 percent.

If you have a floating home loan of upto Rs 30 lakh the new risk premium is 35 bps plus the EBR rate, making your rate outgo at 7.4 percent. This was 7.2 percent earlier.

For a floating rate home loan of above Rs 30 lakh and up to Rs 75 lakh, the new mark up is 60 bps over EBR against 40 bps earlier. Hence, the effective rate will be 7.65 per cent against 7.45 per cent earlier. Likewise the effective rate for loans above Rs 75 lakh has gone to 7.75 percent versus 7.55 percent earlier.


SBI has recently cut its external benchmark rate by 75 bps after RBI slashed the policy repo rate to 5.15 percent.

Separately, the PSU lender also cut its marginal cost of lending rate by 15 bps across all tenors. The one year MCLR now comes down to 7.25 percent from 7.4 percent with effect from May 10, 2020. This is the twelfth consecutive reduction in bank’s MCLR.Government-run lender State Bank of India has raised the premium it charges over its external benchmark rate (EBR) by 20 basis points for floating rate home loans with effect from May 1. It’s EBR has remained pat at 7.05 percent.

If you have a floating home loan of upto Rs 30 lakh the new risk premium is 35 bps plus the EBR rate, making your rate outgo at 7.4 percent. This was 7.2 percent earlier.

For a floating rate home loan of above Rs 30 lakh and up to Rs 75 lakh, the new mark up is 60 bps over EBR against 40 bps earlier. Hence, the effective rate will be 7.65 per cent against 7.45 per cent earlier. Likewise the effective rate for loans above Rs 75 lakh has gone to 7.75 percent versus 7.55 percent earlier.

SBI has recently cut its external benchmark rate by 75 bps after RBI slashed the policy repo rate to 5.15 percent.

Separately, the PSU lender also cut its marginal cost of lending rate by 15 bps across all tenors. The one year MCLR now comes down to 7.25 percent from 7.4 percent with effect from May 10, 2020. This is the twelfth consecutive reduction in bank’s MCLR.