SBI Home loan interest rate sanctioned after SBI Spread Hike?

POSTED BY Anish ON October 12, 2013 10:28 pm COMMENTS (3)


I have a query for SBI Home Loan Interest Rate.

I am having home loan at ICICI @ 11% which i started in Sep 2012. I have applied for Home Loan transfer in SBI on 19th Sep 2013 for approx. 43L balance. Though in SMS I got alert as – “Your HL Proposal of 43L received by us on 27 SEP 2013 is sent to CPC / taken for Procession on 7 OCT 2013”. On 9th Oct, I got SMS that my loan is sanctioned.

Now as you know –

Before 1st Oct, spread for Home Loan > 30L was 0.4%. This implies 10.2% (9.8 + 0.4)

However, effective 1st Oct, spread for Home Loan > 30L became 0.5%. This implies 10.3% (9.8 + 0.5)

1) Please let me know what will be spread for my case as I applied before Hike though Loan is sanctioned after Hike by SBI?

2) In case, spread is .5%, will bank be ready to negotiate on Spread as Other banks are offering low interest rate for Home Loan > 30L? Below is my analysis –

10% – Canara Bank

10.2% – UCO bank, Indian Bank

10.25% – IDBI, Dena Bank, Bank of Baroda, PNB, Corp Bank, OBC, Union bank, United Bank, Standard Chartered, Central bank, Syndicate bank

Now, SBI is no more bank which provides lowest home loan rates.


3 replies on this article “SBI Home loan interest rate sanctioned after SBI Spread Hike?”

  1. ashalanshu says:

    Dear Anish, I stand corrected here. with the revision in Base Rate, SBI has also increased the spread from 1st Oct 2013. Hence yes, new ROI for above 30L Rs. Loan is 10.3% (9.8% base rate + spread of 0.5%). So in your case, as the loan disbursal ‘ll happen post rate and spread hike, the new rates are applicable to you. For negotiation on spread reduction, please feel free to contact SBI. although I doubt any success here. 🙂



  2. Anish says:

    Thanks Ashal for response.

    However, Home Loan rate effective 1st Oct 2013 as per SBI website is –
    Loan Amount
    Spread over the Base Rate
    Current effective Rate of Interest(From: 01/10/2013)

    Upto Rs. 30.00 lacs
    10.10% p.a.

    Above Rs. 30.00 lacs
    10.30% p.a.

  3. ashalanshu says:

    Dear Anish, the spread was 0.4%. and thus the old rate was 9.7+0.4 = 10.1% Still the spread is same but the base rate is now 9.8%, hence your new rate is 10.2% now. Incase of home loan, no matter from which institution you take, for a floating rate loan, the date of disbursal ‘ll decide the ROI.



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