Government-owned institutional lender, State Bank of India, has increased its interest rates for home loans and home-related loans effective from 1 August 2025, reported the news portal The Economic Times. The rise in home loan rates will impact the EMI payments of the borrowers.

According to the revised data, the interest rate for a regular home loan (term loan) currently stands at 7.50% to 8.70%. 

SBI has raised the upper band of the interest rate by 25 basis points to its current level of 8.70%, compared to its earlier level of 8.45%. However, the lower limit of the home loan rates are kept unchanged.

State Bank of India's move to increase the upper interest rate band of the home loan rates comes after the Indian central bank, the Reserve Bank of India (RBI), decided to keep its key benchmark interest rates (repo rates) unchanged at 5.55% in the August 2025 Monetary Policy announcement.