Special home and car loan scheme has been extended by State Bank of Hyderabad (SBH) too. Following the largest lender of the country, State Bank of India and HDFC Bank, the bank has decided to increase the rates.
The interest rate for home loans would be 8.5% for the first year of the loan and will increase to 9.25% (floating) for the second and third years for loan amounting to Rs 50 lakh. The interest for second and third years would be 9.5% (floating) for loans amounting to more than Rs 50 lakh.
From the fourth year onwards, the rate would be linked to base rate which would reach to 9.75% for loans upto Rs 50 lakh and 10.75 per cent for loans above Rs 50 lakh at present.
The interest rates for car loans for new cars are 8.5 per cent fixed for the first year and 10.5 per cent (floating) for second and third years irrespective of loan amount.
From the fourth year till the tenor of the loan, the rate would be linked to base rate and work out to around 11.5 per cent for loans up to Rs 5 lakh and 11.25 per cent for above Rs 5 lakh.
The bank has fixed its base rate at 7.75%.