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After repayment moratorium ,SBI hikes home loan rates

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SBI has increased its home loan rates that are linked to repo rate by up to 30 basis points

Banks have started exploiting the loan customrs who were first given repayment moratorium to tackle COVID-19 -induced distress and now being asked to pay higher interest.

Country’s largest lender SBI has increased its home loan rates that are linked to repo rate by up to 30 basis points amid market indications of increased credit risk for borrowers and realty firms in the wake of coronavirus pandemic.

According to a senior official, the bank has also hiked interest rates on personal loans against property by 30 basis points. With market leader SBI making the move, other lenders are also likely to follow suit.

On Thursday, SBI slashed benchmark lending rate by 15 basis points.Subsequently, rates on home loans linked to Marginal Cost of Funds-based Lending Rate (MCLR) have also come down. Most of the home loans are given onthe basis of repo rate or MCLR.

While SBI has kept the external benchmark-linked lending rate constant at 7.05 per cent, the increase in home loan rates has been done by raising margins by up to 30 basis points across various home loan products.

The new rates cameinto effect from May 1, 2020 as per information available on its website.

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