SBI has raised its home loan rates by 25 basis points, according to reporting by Business Today. That's a rise of 0.25 percentage points.
For you, it means a higher monthly payment if your loan rate is affected. On a ₹50 lakh, 20-year loan, the extra cost is about ₹795 a month.
Key takeaways
- SBI's home loan rates are up by 0.25 percentage points, as reported by Business Today.
- On a ₹50 lakh, 20-year loan, the EMI rises by about ₹795.
- If your EMI stays the same, your loan tenure may stretch instead.
- Check your rate letter, then plan a small prepayment if you can.
How a 25 bps rise works
A basis point is one-hundredth of a percentage point. So 25 bps is 0.25%. It sounds tiny, but home loans run for many years.
Your EMI is the fixed amount you pay each month. It covers interest and a part of what you borrowed. When the rate goes up, the interest part grows.
The bank can then do one of two things. It can raise your EMI. Or it can keep the EMI the same and stretch your loan by a few months. Many banks pick the second path for existing borrowers.
The report doesn't give every detail. Check SBI's notice for the start date and the loans it covers.
What changes for your monthly EMI
Let's take a simple example. Say you owe ₹50 lakh for 20 years. At 8.50%, your EMI is about ₹43,390. At 8.75%, it's about ₹44,185.
Those rates are only an example. Your own rate may differ. What matters is the gap from a 0.25-point rise. The table shows it for other loan sizes.
| Loan amount (20 years) | Extra EMI each month | Extra cost over 20 years |
|---|---|---|
| ₹25 lakh | about ₹400 | about ₹95,000 |
| ₹50 lakh | about ₹795 | about ₹1.9 lakh |
| ₹75 lakh | about ₹1,190 | about ₹2.9 lakh |
| ₹1 crore | about ₹1,590 | about ₹3.8 lakh |
These are rounded figures from standard EMI maths. Your real numbers depend on your rate and the years left. Use the EMI calculator to get an exact number.
Who is affected
Borrowers on floating rates feel changes the most. A floating rate moves with a benchmark, so your bank can change it over time. Fixed-rate borrowers are usually safe until their fixed period ends.
New applicants will likely see the higher rate on their offers. If you've just been sanctioned a loan, check which rate was locked in.
People with long loans and large balances pay the most extra. Someone with five years left will feel far less. Our home loan guides explain how rate types differ.
What to do now
You don't need to panic. A few calm steps can save you real money.
- Read the message from SBI about your new rate and EMI.
- Find out if your EMI or your loan tenure is changing.
- Run the new numbers in an EMI calculator.
- Compare other lenders on our interest rates page.
- Put any spare cash toward your principal. Even a small prepayment cuts interest.
RBI rules say banks can't charge prepayment penalties on floating-rate home loans taken by individuals. So part-payments are usually free. Confirm this with your branch.
Follow the news hub for more rate updates.
Frequently asked questions
Will my EMI go up right away?
It depends on your loan type and reset date. Your bank will tell you if the EMI or the tenure changes. Check your loan statement.
Is 25 bps a big increase?
It's a modest step on its own. But on a large, long loan, it adds up to lakhs over the years.
Should I switch my home loan to another bank?
Only if the new rate is clearly lower after fees. Count processing costs and any other charges before you move.
BankCreds analysis
Less scary than it looks
A 0.25-point rise is real, but it isn't a shock. For a ₹50 lakh loan, it's about ₹795 a month. Most steady earners can absorb that.
The bigger risk is time. If your bank keeps the EMI fixed, your loan gets longer. A 20-year loan can quietly become 21 years or more. Ask for a new repayment schedule so you see the true end date.
Salaried families with big loans and thin savings are hit hardest. Borrowers near the end of their loan barely notice. Don't read this as a sign of many more hikes. One step doesn't make a trend.
This week, do one thing. Pay about ₹800 more each month if you can. That can offset the extra interest and protect your end date.
This section is BankCreds' own assessment of what the development means for Indian borrowers and savers. It is independent commentary, not part of the source reporting above.
Sources & references
- Business Today — originating report https://www.businesstoday.in/personal-finance/story/sbi-raises-home-loan-rates-by-25-bps-how-much-more-will-you-pay-every-month-562229-2026-10-18
- RBI Master Directions — RBI rules on prepayment charges for floating-rate loans to individuals https://www.rbi.org.in/Scripts/BS_ViewMasDirections.aspx
Source links are shown as plain text, not clickable links. Copy a URL into your browser to read the original report.
Editorial note & disclaimer
How this was reported. The development above is attributed to the source or sources listed. BankCreds does not independently verify a third party's reporting; where a figure or a regulatory position is stated as fact, it is either attributed or drawn from the regulator's own published material. Everything under "BankCreds analysis" is our own assessment.
Rates and figures. Interest rates, per-gram values and premium bands quoted here are indicative, move daily, and differ by borrower profile, city and lender policy. Confirm the final number with the institution before you act on it — the sanction letter or policy schedule governs, not a news report.
Not financial advice. This article is general information for an Indian audience. It is not investment, tax, credit or insurance advice, takes no account of your circumstances, and BankCreds is not a lender, broker, distributor or advisor. Consider speaking to a SEBI-registered investment adviser or a qualified professional before acting.
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