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SBI hikes lending rates by THIS much, check interest on home loan EMIs

SBI's EBLR now stands at 8.55% and RLLR at 8.15%, both of which take effect on October 1st, 2022.

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State Bank of India (SBI), a public sector lender, also increased its external benchmark lending rate (EBLR) and repo linked lending rate (RLLR) by 50 bps in response to the Reserve Bank of India's (RBI) Monetary Policy Committee decision to increase the repo rate by 50 bps.
 
The SBI's EBLR now stands at 8.55% and RLLR at 8.15%, both of which take effect on October 1st, 2022, as a result of the new rate revision.
 

So customers looking at the impacts of the new hike, i.e. 50 bps (100 basis points = 1%), the interest on home loan EMIs will increase too.
 
Taking into account a client who obtained a 35 lakh home loan with a 20-year term If the borrower's home loan had an interest rate of 8/05% before the increase, the new rate will be 8.55%.
 
However, the PSB will take into account a number of variables when determining the interest rate charged on the mortgage, such as the borrower's profile, loan to value ratio, risk assessment, missed payments, etc.
 
In another situation, the higher EMI expense can only be reduced if the borrower chooses to extend the loan's term. However, choosing this option would result in higher loan interest rates.
 
Or, if the borrower prepays a portion of the loan balance, this will reduce the remaining balance of the loan and a revised but reduced interest rate will be in effect.
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