According to the revised data, the interest rate for a regular home loan (term loan) currently stands at 7.50% to 8.70%.
SBI has raised the upper band of the interest rate by 25 basis points to its current level of 8.70%, compared to its earlier level of 8.45%. However, the lower limit of the home loan rates are kept unchanged.
State Bank of India’s move to increase the upper interest rate band of the home loan rates comes after the Indian central bank, the Reserve Bank of India (RBI), decided to keep its key benchmark interest rates (repo rates) unchanged at 5.55% in the August 2025 Monetary Policy announcement.
SBI home loan rates
State Bank of India’s official website data shows that the current home loan-related interest rates are as follows —
1. Home Loan (term loan): 7.50% to 8.70%
2. Home Loan Maxgain (OD): 7.75% to 8.95%
3. Top Up Loan: 8% to 10.75%
4. Top Up (OD) Loan: 8.25% to 9.45%
5. Loan Against Property (P-LAP): 9.20% to 10.75%
6. Reverse Mortgage Loan: 10.55%
7. YONO Insta Home Top-up Loan: 8.35%
However, the bank also said that the interest rate for the home loans are based on the CIBIL score of the individual. All the home loans are linked to external benchmark rates (EBLR) which is currently prevailing at 8.15%, according to the official website.
How will the rate change impact borrowers?
SBI raising its home loan interest rates will directly impact the borrowers who are taking a term loan at the higher end of the interest band.
Depending on the customer’s credit profile or credit score, if they fall under the higher interest rate bracket, then they will have to pay a slightly higher rate of EMI due to the 25 basis point increase. An effect of the hike will also be on the repayment burden due to the higher interest amount, as it can be significant over a longer period of time.
Example with new interest rate: If you take a home loan of ₹50 lakh for a total tenure of 20 years at an interest rate of 8.70%, you will pay the bank a monthly EMI of ₹44,026.
At the end of the 20-year period, you would be paying a total interest of ₹55,66,275 on top of the principal amount. The total home loan payment will be ₹1,05,66,275 or over ₹1.05 crore at the end of the term, according to the Groww home loan calculator.
Example with old interest rate: If you had taken a home loan of ₹50 lakh for a total tenure of 20 years, but at the older interest rate of 8.45%, then you would be paying the bank a monthly EMI of ₹43,233.
With the older interest rates, a customer will be paying a total interest of ₹53,75,935 on top of the principal amount of ₹50 lakh, bringing the total loan payment to ₹1,03,75,935 over the 20-year period, according to the Groww calculator.
This marks a ₹737 rise in the EMI every month for a total of 20 years due to the interest rate hike.
