How to Change SBI Home Loan Interest Rate?

Wondering about SBI home loan change interest rate? If you’re looking to change your State Bank of India home loan interest rate, there are options available that can help reduce your overall interest burden. Here’s a step-by-step guide on how to change your SBI home loan interest rate:

• If your home loan is linked to the Marginal Cost of Funds based Lending Rate (MCLR), you can switch to the Repo Rate Linked Lending Rate (RLLR), which is generally lower and more transparent.

• Visit your SBI branch or contact customer care to submit a request for conversion. You’ll need to fill out an application form. 

SBI charges a nominal fee (usually 0.25% of the outstanding loan amount or a fixed amount) for converting the loan to the new interest rate regime. Once approved, your loan interest rate will be adjusted, and you’ll be notified of the change.

• If you have a strong credit score (750 or above) and a consistent repayment history, you can negotiate for a lower interest rate. Discuss your request with your branch manager. They might be willing to reduce your rate, especially if competing banks offer better deals.

• If SBI’s current interest rate is not competitive, you can explore transferring your loan to another lender offering a lower rate. Before doing so, inform SBI that you’re considering a balance transfer; they might offer a better rate to retain you.

• SBI allows you to apply for rate conversion online through their

  YONO app

  or the SBI home loan portal. You can check eligibility and process the request digitally.

• You can change your SBI home loan interest rate by switching to RLLR, negotiating with the bank, or opting for a balance transfer.

This is all about SBI home loan interest rate change for existing customers.

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How to Remove Lien Amount in SBI Online? 

A colleague of mine told me that the majority of banks, including the State Bank of India, provide floating-rate home loans at the External Benchmark Lending Rate (EBLR). This is why borrowers can do SBI home loan change interest rate. I was just as confused as you might be. Let me tell you more about it in simple terms.

What is Home Loan Interest Rate Change SBI?

EBLR is a new structure for interest rates. SBI and many other banks now set the interest rates on all home loans with variable rates based on the External Benchmark or EBLR.

I think one of the best advantages of EBLR is that our loan interest rate will adjust accordingly in the next quarter, with regard to any changes that the Reserve Bank of India declares on repo rates. EBR is a transparent loan pricing scheme as well.  

How to Change Home Loan Interest Rate in SBI?

• Existing SBI home loan borrowers are given the choice to convert to the current interest rate, which is based on the repo rate. 

• A one-time switchover fee + GST is required from the consumer for this. There is a one-time switchover charge of Rs. 1000 plus taxes.

• The interest rate will be adjusted if you have chosen SBI's fluctuating rate of interest. 

• To switch to the new interest rate structure, you can visit the bank and make the necessary request. 

• The current 8.40% p.a. interest rate for SBI home loans is based on the external benchmark rate (EBR), which is connected to the repo rate of the Reserve Bank of India (RBI). The EBR will fluctuate with any changes to the repo rate.

Can Existing Borrowers Avail the Benefits of the New Interest Rate?

Yes. It is possible to transfer borrowers of floating-rate home loans to the new interest-rate structure as long as they maintain regular account conduct as of the switchover date.

I hope now you understand about the SBI home loan change interest rate.

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What is SBI Home Loan Interest Rate as per CIBIL Score?

 

Home loan interest rates are at an all time low especially since the outbreak of coronavirus. Banks and financial institutions have dropped the interest rates on home loans. The major reason for the dip in interest rates is that RBI slashed repo rate to 4%. Any change in repo rate affects the EBR, i.e. external benchmark rate. If you didn’t know interest rates of home loans in banks are linked to EBR. Now you must be wondering how to change SBI home loan interest rate now that you have the option. Don’t fret! I am here to help you know all your answers on SBI Home loan interest rate change. How to change interest rate in SBI home loan? If you have opted for floating rate of interest in SBI then  rate of interest will get revised if

• There are changes in Base Rate
• The bank decided to reduce or increase the EMI thereby revising the interest rate

You can go to the bank and submit the request to migrate to the new interest rate structure. The existing home loan account holders in SBI have to pay one time switch over fee which amounts to Rs. 5000 plus taxes. The interest rates change at quarterly interval. If you are a new home loan borrower, SBI is offering three additional benefits and an interest rate of 6.80%. The additional benefits are -

• No processing fee
• 0.10% interest concession for borrowers with high CIBIL score for loans between Rs. 30 lakh and Rs. 1 crore
• Additional 0.5% concession for applying via SBI's Yono app

So if you want to avail the SBI home loan interest rate change facilities, submit your application in the bank at the earliest. If you want to know about home loan eligibility criteria and your CIBIL score please fill out the form below. [widget_homeLoan_checkEligibility_form] Read more: What is home loan interest in SBI? What is SBI home loan disbursement process for under construction property? How to transfer home loan to SBI? How to reduce home loan interest in SBI? How to check SBI home loan status?