The Hindu Business Line : SBI hikes home loan, term deposit rates

STATE Bank of India has finally yielded to interest rate pressures and raised rates on domestic term deposits and home loans by 0.25 to 0.50 percentage points.

The revised rate will come into effect from November 29.

SBI has also introduced a new slab of deposits of 5 years and above, carrying an interest rate of 6.25 per cent, in a bid to boost the infrastructure sector and to make available long-term funds for infrastructure projects, said a press release.

Another new slab of deposits, that of 7-14 days, has been introduced, carrying an interest rate of 3.00 per cent.

Interest rates on short-term deposits of 15 to 45 days, 46 to 179 days and 180 days to less than a year have been revised upwards by 0.25 percentage points to 4.00 per cent, 4.50 per cent and 5.00 per cent respectively, the release said.

Interest rates on term deposits of maturity of one year to less than 3 years and 3 years to less than 5 years have been revised upwards by 0.50 percentage points to 5.50 per cent and 5.75 per cent respectively.

Senior citizens will receive an additional 0.50 percentage point interest on domestic term deposits with maturity of one year to less than 3 years and 3 years to less than 5 years, and 0.25 percentage points for maturity of 5 years and above. Accordingly, interest rates for senior citizens for term deposits of one year to less than 3 years, 3 years to less than 5 years and 5 years and above shall be 6.00 per cent, 6.25 per cent and 6.50 per cent respectively, said the release.

Interest rates on home loans have been increased by 0.50 percentage points in respect of floating interest rates and 0.25 to 0.50 percentage points in respect of fixed interest rates. The new floating rate will be 8 per cent up to five years and 8.5 per cent for loans above five years and up to 15 years.

The new fixed rate for the same maturity will be 8.5 per cent and 9 per cent respectively.

The revised interest rates shall be applicable only to new housing loans whose first disbursal is on or after November 29.

Existing housing loans will continue to enjoy the pre-revised rates.

More Stories on : Interest Rates | Public Sector Banks | Co-operatives | Housing Finance

Article E-Mail :: Comment :: Syndication :: Printer Friendly Page

Stories in this Section
Ambani brothers seeking legal opinion

India can lead in `inclusive globalisation', says ILO chief

Bank credit up Rs 7,241 cr

Virgin keen to invest in airlines, telecom

SBI hikes home loan, term deposit rates

Mukesh, Anil attend function