State Bank of India to hike home loan rates

State Bank of India may hike home loan rates by 25-50 basis points though no time frame has been decided as yet.
In its annual policy on April 18, the Reserve Bank of India had raised risk weight on commercial property loans to 150 per cent from 125 per cent and provisioning on housing loans above Rs 2 million to 1 per cent from 0.4 per cent. This is likely to force banks, including SBI, to raise home loan rates. India's largest housing finance company, Housing Development Finance Corp, would take a decision this week on hiking interest rates on retail and bulk home loans.
By INRnews Correspondent

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