MUMBAI, Aug. 18 -- The country's largest lender, State Bank of India (SBI), and fellow public sector major Union Bank of India have raised home loan interest rates by 10-25 basis points, even as the broader interest rate cycle remains neutral. The move comes at a time when PSU banks continue to see steady growth in housing loans, despite a slowdown in overall sectoral credit growth.

SBI's hike follows the Reserve Bank of India's (RBI) decision to hold rates steady at its last monetary policy meeting on 6 August.

Mint looks at what this means for borrowers and whether other lenders are likely to follow.

SBI has increased the upper band of its term home loan rates by 25 basis points (bps), according to Economic Times. Effective 1 August,...