Mumbai, Jan 01 (Agencies): The country's largest lender, State Bank of India raised rates
on special home loan schemes to 8.50% for home loans up to 7.5 mln rupees in the first year from 8.00% earlier taking effect from Monday, the bank's release said.

The state-owned bank will offer a fixed rate of 9.25% for the next two years. The new home loan scheme will be valid till Mar 31.

SBI was offering a teaser home loan rate of 8% for the first year and 9% for the next two years. However, it had to raise home loan rates after it raised Base Rate by 40 basis points to 8% and Benchmark Prime Lending Rate by 25 bps to 12.75% on Friday.

The state-owned lender also raised rates on auto loans to 9% for the first year and 10% for the next two years.