| SBI to hike home loan EMIs, NPAs may rise |
| BS Reporter / Mumbai June 28, 2007 |
| State Bank of India (SBI) has decided to increase the equated monthly instalments (EMIs) on floating rate home loans for the first time after it raised interest rates over the past one year. Even though the bank expects the decision to result in higher defaults, it is planning to increase the EMIs by around 10%. The bank had hitherto resorted to prolonging the repayment tenure by up to 25 years as the interest rates on housing loans went up by 2% over the last year. |
