State Bank of India [Get Quote] on Friday increased floating home loan rate by 0.5 per cent across all tenors with effect from June 27.

For home loans up to Rs 30 lakhs (Rs 3 million) for 20 and 25 year period, the interest rate has been increased by 0.5 per cent to 11 per cent against 10.5 per cent, SBI said.

Equated Monthly Instalment for 25 years would go up from Rs 945 to Rs 980 per lakh while for 20 years EMI would go up by Rs 35 to Rs 1,035.

Housing loan with maturity between 10 and 15 years has gone up to 10.75 per cent. EMIs under these maturities would go up as much as by Rs 35.

For five years, the new rate of interest is 10.5 per cent, against 10 per cent earlier. EMI in this category would rise by Rs 25 to Rs 2,150 per lakh.

Similarly, housing loan above 30 lakhs is increased by 0.5 per cent across all tenors. The maximum rate in the segment has gone up to 11.25 per cent.

However, the bank has left fixed interest rate on home loan unchanged at 12.75 per cent.

Floating interest rate is linked to State Bank Advance Rate of 12.75 per cent per annum, it said. On June 27, the bank increased its prime lending rate by 0.5 per cent.

The decision was taken following Reserve Bank of India's June 24 announcement of a 0.5 per cent hike in its short term lending rate to banks and cash reserve requirement.

Private sector players like HDFC [Get Quote] and ICICI Bank [Get Quote] have already increased home loans rate by 0.75 per cent.