RBI did not levy the rate hike but due to the liquidity squeeze, several banks have hiked interest rate offerings since late 2017.
It started with the private sector lenders like Axis Bank, Yes Bank and Kotak Mahindra Bank hiking their marginal cost of funding-based lending rates, and gradually percolated down to all the banks in the system including the largest lender SBI.
The increase in the Retail Prime Lending Rate (RPLR), on which it benchmarks the Adjustable Rate Home Loans (ARHL), was effective from April 1.
A company spokesperson said the rate hike is progressive, between 0.05 % to 0.20 %, with the lowest hike, applicable to the low-ticket size loan.
Loans between Rs 30 lakh to Rs 75 lakh will be available at 8.55 percent for women borrowers and 8.60 percent for others, while those above Rs 75 lakh will be for 8.65 percent for women and 8.70 percent for others.