The State Bank of India (SBI) has increased its home loan external benchmark lending rate (EBLR) by 40 basis points to 7.05 percent + CRP, while the RLLR would be 6.65 percent plus CRP. According to SBI’s website, the increased interest rates are effective from June 1, 2022. According to the SBI website, “External Benchmark based Lending Rate (EBLR) = External Benchmark Rate (EBR) + Credit Risk Premium (CRP).”
Banks add a Credit Risk Premium (CRP) above the EBLR and RLLR when giving any sort of loan, including home and auto loans.
Interest rates are evaluated and altered at least once every three months under external benchmark based linked based loans. As a result, any change in an external benchmark (repo rate, for example) will cause your EMI outgo to fluctuate more quickly.
The interest rate on a bank’s home loan varies depending on the credit score, which they add as a credit risk premium. If your credit score is low, then the interest rate charged is high and vice versa. So before applying for any loan one should make sure to check the credit score.
State Bank of India offers interest rates based on the CIBIL score which is a three-digit numeric summary of your credit history. Regular SBI home loans have an interest rate of 7.05 percent for credit scores more than or equal to 800, according to the SBI website.
The interest rate ranges from 7.15 percent for credit scores of 750 to 799, and 7.25 percent for credit scores of 700 to 749.
The interest rate is 7.35 percent for credit scores 650-699, and 7.55 percent for credit scores 550-649. The interest rate is 7.25 percent with NTC/no CIBIL score.
If you have a home loan with SBI, here’s how much your EMI would increase as a result of the raise.
If you take a home loan for up to Rs 35 lakh, the interest rate would be 7.05 percent if your CIBIL score is 800 or above. The risk premium is nil in this case because the SBI EBLR is 7.05 percent. Note that the risk premium is determined by the CIBIL score.
The new interest rate of 7.05% is applicable provided CIBIL score is is 800 or more
| Loan Amount (Rs) | 35,00,000 |
| Tenure (Years) | 20 |
| Interest Rate (%) | 6.65% |
| Old EMI (Rs) | 26,405 |
| New Interest rate (%) | 7.05% |
| New EMI (Rs) | 27,241 |
| Increase in EMI (Rs) | 836 |
If you acquire a home loan for up to Rs 75 lakh, the interest rate levied on your loan would be 7.05 percent if your CIBIL score is 800 and above as CIBIL score determines the risk premium. Here the risk premium is zero as SBI EBLR is 7.05 percent.
The new interest rate of 7.05% is applicable provided CIBIL score is is 800 or more.
| Loan Amount (Rs) | 75,00,000 |
| Tenure (Years) | 20 |
| Interest Rate (%) | 6.65% |
| Old EMI (Rs) | 56,582 |
| New Interest rate (%) | 7.05% |
| New EMI (Rs) | 58,373 |
| Increase in EMI (Rs) | 1791 |
If you acquire a home loan for up to Rs 35 lakh, the interest rate levied on your loan would be 7.15 percent if your CIBIL score is between 750-799 as CIBIL score determines the risk premium. Here the risk premium added is 10 basis points as SBI EBLR is 7.05 percent.
The new interest rate of 7.15% is applicable if CIBIL score is between 750 and 799.
| Loan Amount (Rs) | 35,00,000 |
| Tenure (Years) | 20 |
| Interest Rate (%) | 6.75% |
| Old EMI (Rs) | 26,613 |
| New Interest rate (%) | 7.15% |
| New EMI (Rs) | 27,451 |
| Increase in EMI (Rs) | 838 |
If you acquire a home loan for up to Rs 75 lakh, the interest rate levied on your loan would be 7.15 percent if your CIBIL score is between 750-799 as CIBIL score determines the risk premium. Here the risk premium added is 10 basis points as SBI EBLR is 7.05 percent.
The new interest rate of 7.15% is applicable if CIBIL score is between 750 and 799.
| Loan Amount (Rs) | 75,00,000 |
| Tenure (Years) | 20 |
| Interest Rate (%) | 6.75% |
| Old EMI (Rs) | 57,027 |
| New Interest rate (%) | 7.15% |
| New EMI (Rs) | 58,825 |
| Increase in EMI (Rs) | 1,798 |
