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SBI Home Loan rate: Big news! Interest rate hiked by 0.40%; How much did the EMI of 25 lakh loan for 20 years increase

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SBI issued alert for all customers! If this work is not done then the account will be closed, know truth otherwise....

SBI home loan calculator: (SBI) has increased the rates by 0.40 percent in home loans. SBI’s home loans that are linked to EBLR (External Benchmark Lending Rates) have become expensive. The new rates came into effect from 1 June 2022.


SBI home loan: After the increase in the repo rate by the Reserve Bank (RBI), loans from commercial banks are getting expensive. State Bank of India (SBI) has increased the interest rates on home loans by 0.40 percent. SBI’s home loans have become expensive, which are linked to EBLR (External Benchmark Lending Rates). The new rates came into effect from 1 June 2022. Know from the Home Loan EMI Calculator that if you have taken a loan of Rs 25 lakh for 20 years, then how much will your loan EMI increase after your interest rates increase.

Understand EMI calculation

EMI before rate hike

Loan Amount: Rs 25 lakh
Loan Tenure: 20 Years
Rate of Interest: 6.95% per annum
EMI: Rs 19,308
Total Tenure Interest: Rs 2,133,803
Total Payment: Rs 4,633,803


EMI after rate hike

Loan Amount: Rs 25 lakh
Loan Tenure: 20 Years
Rate of Interest: 7.35% p.a (rate after 0.40 per cent hike)
EMI: Rs 19,911
Interest on Total Tenure: Rs 2,278,677
Total Payment: Rs 4,778,677

(Note: This calculation is based on the SBI Home Loan EMI calculator.)

New Home Loans Linked to External Benchmarks

According to the Reserve Bank’s rules, now the home loans of banks are linked to the Marginal Cost Lending Rate (MCLR) and Repo Linked Lending Rate (RLLR). In 2019, RBI had asked all banks to link new home loans to external benchmarks, as banks were not passing on the full benefit of RBI’s reduction in repo rate to customers. Let us tell you, during the Corona epidemic, the Reserve Bank made a major cut of 115 basis points (0.75 percent in March 2020 and 0.40 percent in May 2020) in interest rates to keep demand and growth.

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