Saturday, April 29 2006 14:07 Hrs (IST) - World Time -

Mumbai: Country's largest bank State Bank of India (SBI) today hiked the home loan rates for various tenures with effect from May 1.

The fixed rate element has gone up by 25 basis points or 0.25 per cent for loans, hence, the interest on loans for upto five years is raised to 9.50 per cent from 9.25 per cent, the bank informed the Bombay Stock Exchange.

Housing loans for a period above 5 years and upto 10 years will now attract an interest rate of 9.75 per cent per annum instead of 9.50 per cent.

The bank upwardly revised its State Bank Advance Rate (SBAR) by 50 basis points or half a percentage to 10.75 percent per annum.

The floating rates linked to SBAR for loan period upto 5 years will be 2 per cent below SBAR with minimum 8.75 per cent instead of 1.5 per cent below SBAR with minimum 8.5 per cent per annum.

For loans above 5 years but less than 10 years, the interest rate will be 1.50 below SBAR with minimum 9.25 per cent instead of a minimum of 8.75 per cent.

For loans of above 10 years and upto 15 years the minimum floating rate will be minimum 9.25 per cent from existing 9 per cent. Also, the loans of above 15 years and upto 20 years, the floating rates will be minimum 9.75 per cent, half apercentage more than existing rate of 9.25 per cent, SBI said.