State Bank of India advertises a home loan from 7.25% p.a. onwards and can charge up to 8.55% for the same product. The advertised figure is a starting rate, not an offer — it is the floor, and where you land inside the 1.30% band is set by your credit score, your down payment and your income type rather than by bargaining.
The rate
| Advertised rate | Maximum rate | Terms | Processing fee |
|---|---|---|---|
| 7.25% | 8.55% | Repo-linked (EBLR) | 0.35%, min ₹5,000, max ₹15,000 + GST (salaried) |
Updated 17 Sep 2026 · Lender rate pages, checked individually.
The loan is repo-linked, so the rate moves with the RBI’s policy repo rate under the external benchmark lending rate regime rather than at the bank’s discretion. That cuts both ways: cuts reach you faster than they would on an internal benchmark, and so do increases. If you would rather not carry that, read the trade-off in fixed versus floating home loans before you sign.
Read the fee together with the rate, not separately. Where a processing fee is quoted without tax, add 18% GST to get what you actually pay; the full charge list sits on SBI’s home loan fees and charges. On a large, long loan the rate dominates. On a smaller or shorter one, a low rate carrying a high fee is often the costlier deal.
How it compares
SBI is the joint 5th cheapest of the 12 providers we track for this product, 0.10% above Canara Bank, LIC Housing Finance and Union Bank of India at 7.15% and 0.05% above Bank of Baroda at 7.20%. Gaps that small are a rounding error on a monthly EMI, so they are not on their own a reason to pick one lender over another — the fee, the turnaround and how each lender treats your profile matter more. The full ranking is in our table of home loan interest rates, and the shortlist behind it is at best home loans.
Before you compare offers, put both through the EMI calculator at the amount and tenure you will really borrow. A 0.10% gap is invisible in a headline and visible in rupees over twenty years, and the same exercise shows what the 8.55% maximum would cost if your profile does not clear the floor.
Terms change without notice. Confirm the current figures with the lender before you act.
Related reading
SBI Home Loan EMI Calculator: EMI by Loan Amount and Tenure
At SBI's 7.25% starting rate, a ₹50 lakh home loan over 20 years costs ₹39,519 a month; ₹10 lakh over 10 years costs ₹11,740.
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SBI Home Loan Fees and Charges
The processing fee State Bank of India publishes on a home loan, plus the charges that sit outside it.
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