SBI Hikes Home Loan Interest Rates by 25 Basis Points: Check the Updated Rates and Impact on EMIs

India’s largest public sector lender, the State Bank of India (SBI), has revised its home loan interest rates, making borrowing slightly costlier for new customers. The change, which came into effect from 1 August 2025, means that borrowers opting for loans at the higher end of the rate spectrum will now face increased EMIs.

According to updated figures, the interest rate for a standard home loan (term loan) now ranges between 7.50% and 8.70%. While the minimum lending rate remains unchanged at 7.50%, SBI has raised the upper limit of its home loan band by 25 basis points, moving it from 8.45% to 8.70%.

Interestingly, this decision comes even though the Reserve Bank of India (RBI) left its benchmark repo rate steady at 5.55% in the August 2025 Monetary Policy review. This suggests that the move is aimed at balancing the bank’s lending portfolio and adapting to market conditions, rather than being a direct reflection of RBI’s stance.

Revised SBI Home Loan Interest Rates

As per the lender’s official website, the latest home loan-related rates are as follows:

• Home Loan (term loan): 7.50% – 8.70%
• Home Loan Maxgain (OD): 7.75% – 8.95%
• Top-Up Loan: 8% – 10.75%
• Top-Up (OD) Loan: 8.25% – 9.45%
• Loan Against Property (P-LAP): 9.20% – 10.75%
• Reverse Mortgage Loan: 10.55%
• YONO Insta Home Top-Up Loan: 8.35%

SBI clarified that actual interest rates depend on the borrower’s CIBIL score and credit profile. All home loan products continue to be linked to the External Benchmark Lending Rate (EBLR), which currently stands at 8.15%.

What This Means for Borrowers

The upward revision in rates will primarily affect customers who fall into the higher interest bracket, typically due to lower credit scores or weaker credit histories. For these borrowers, even a small change can significantly alter their repayment burden over the long term.

For instance, consider a ₹50 lakh home loan with a 20-year tenure:

At the new rate of 8.70%, the monthly EMI works out to ₹44,026. Over the loan tenure, the total interest payable rises to ₹55,66,275, bringing the overall repayment to ₹1,05,66,275 (principal + interest).

At the previous rate of 8.45%, the EMI was ₹43,233. In this case, the borrower would have paid a total interest of ₹53,75,935, making the final repayment amount ₹1,03,75,935.

This difference of nearly ₹1.9 lakh in total repayment highlights how even a 25-basis-point increase can weigh heavily on long-term borrowers.

While the hike may not seem large in absolute numbers, it makes a tangible difference in long-term repayment obligations, especially for bigger loan amounts. Borrowers with strong credit scores may still enjoy the lower end of SBI’s rate band, but those falling in higher slabs must brace themselves for steeper EMIs.