Impact of SBI raising home loan interest rates to 8.70%
The State Bank of India has increased home loan rates effective August 1, 2025, raising EMIs for both new and existing borrowers. A ₹50 lakh loan over 20 years now costs nearly ₹1.9 lakh extra due to the interest rates being hiked from 8.45% to 8.70%. While the lowest rate remains 7.50%, only top-credit borrowers qualify.