SBI Home Loan: Home loan is really critical and important financial decision in our lives. Before you finalize your bank to secure home loan, try to get more information on current interest rates from different banks. First, gather some more information about how much each bank can give you. Find out eligibility for government and private banks. Which interest rate is more flexible and affordable such as fixed rates or floating rates?
What is more easy a prepay option or balance transfer? We try to give answers to all such questions and make this home loan process simple for you. A perfect Home loan is loan that gives you lowest rates throughout the tenure, has part payment options and allows you to balance transfer if you wish to.
Kotak Mahindra Bank is offering the cheapest home loan
Kotak Mahindra Bank is offering the cheapest home loan. Its interest rate is 6.65%. At the same time, LIC Housing Finance Limited’s home loan interest rates start from 6.66%. At present, many banks are offering home loans at less than 7%.
| Bank | Interest Rate (in %) | processing fee |
| Kotak Mahindra Bank | 6.65 | maximum 10 thousand rupees |
| LIC Housing Finance Ltd. | 6.66 | 10 to 15 thousand rupees |
| ICICI | 6.70 | 0.25% and up to a maximum of 5 thousand |
| SBI | 6.70 | sorry till 31st august |
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SBI Home Loan Eligibility Criteria
SBI Home Loans is the largest Mortgage Lender in India, which has helped over 30 lakh families to achieve the dream of owning a home. Thus, to avail the Home Loan SBI has certain criteria depending on the nature of Loan and different categories. The eligibility criteria for SBI Home Loan are described in the table below:
| Salaried | Self employed | |
| Age | 18 years to 70years | 21 years to 70years |
| Income | Rs.1,20,000 (p.a.) | Rs.2,00,000 (p.a.) |
| Loan Amt. Offered | 5,00,000 – 1,00,00000 | 5,00,000 – 2,00,00000 |
| Tenure | 5years-30years | 5years-30years |
| Current Experience | 2years | 3years |
| Documentation | 1) Application form with photograph 2) Identity & residence proof 3) Last 3 months salary slip 4) Form 16 5) Last 6 months bank salaried credit statements 6) Processing fee cheque | 1) Application form with photograph 2) Identity & residence proof 3) Education qualifications certificate & proof of business existence 4) Business profile, 5) Last 3 years profit/loss & balance sheet 6) Last 6 months bank statements 7) Processing fee cheque |
SBI Home Loan Interest Rates:
Home Loan – Interest Rates
Click Here for SBI Home Loan Calculator
The Interest rate for SBI home loans are divided into different categories and are explained as follows:
| Loan Amount | SBI Repo Rate Home Loan Rate | Rate For Female Borrower | SBI Maxgain |
|---|---|---|---|
| Upto ₹ 30 Lakh | 6.70% | 6.70% | 7.00% |
| ₹ 30 Lakh – ₹ 75 Lakh | 6.95% | 6.90% | 7.25% |
| ₹ 75 Lakh – ₹ 1 Cr | 7.05% | 7.00% | 7.25% |
| Above ₹ 1 Cr | 7.05% | 7.00% | 7.35% |
Documents Required:
Documents Required Applicable to All SBI Loan Seekers:
- Duly filled loan application
- 3 passport-size photographs
- Identity Proof (Voter ID Card/Passport/Driving License/Pan Card)
- Proof of Residence (Current Address Proof)
- Bank Statement for last 6 months
- Personal assets and liabilities declaration
- Proof of property
- Income Tax Proofs (If required)
- Signature Identification from present banker
Documents Required for Guarantor:
- Assets and liabilities Statement
- 2 passport-size photographs
- Identity Proof (Voter ID Card/Passport/Driving License/Pan Card)
- Address Proof (Telephone Bill/Electricity Bill/Property Tax Receipt/Passport/Voter ID Card)
- Signature Identification from present banker
Late fees penalty and other charges:
Penal interest:- In the event of a default in payment or any irregularity in the account, the Bank reserves the right to levy a higher rate of interest as it deems fit. Enhanced rate of interest @2% p.a on the irregular amount for the period of irregularity, over and above the applicable rate will be charged if the Equated Monthly Installment (EMI) remains unpaid for a period of 30 days from the due date, for any reason, including a bounced cheque.
Most Important Terms and Conditions
SBI Home Loans 2 Failed or Non-payment EMI / Cheque returned/ SI dishonours:-
- Reason: Penalty Failed / Non Payment of EMI – Rs.500 + Service Tax (ST) per EMI missed.
- Reason: Cheque returned (for insufficient funds only) -For cheques upto Rs.1 Lac Rs.225 + ST For cheques above Rs.1 Lac Rs.350 + ST
- Reason: Failed SI- Rs.225 + ST per failed SI
The above-mentioned rates may vary from time to time. Repayment: The loan is to be repaid in Equated Monthly Installments over the tenure of the loan. The repayment installment commences from a date specified in the sanction letter. The liability to the bank will be extinguished only when the outstanding in the loan account becomes Nil, on payment of residual amount, if any.
Disbursement:
The loan will be disbursed only on the following conditions:
- All the security documents prescribed have been executed by borrower/co-applicant (s)/ guarantor/s 2. A valid mortgage (equitable or registered if equitable mortgage is not possible) has been created in favor of the Bank as per the laws of the State.
- Wherever creation of mortgage is likely to be delayed for any valid reason, suitable security including third-party guarantee, has been taken for the interim period.
- The loan will be disbursed in stages where a loan for construction is desired or purchase is through payment to seller in installments.
- All necessary statutory compliances are in place. SBI may disburse the quantum of loan in lump sum or in installments at its own discretion depending on the level of construction of the House/Flat as acceptable to SBI.
SBI will disburse loan amount directly to the builder/seller/society as the case may be and as requested / specified/ directed by the customer to SBI at the time of each disbursement. SBI shall not be responsible / liable in any manner whatsoever for any delay by the customer in providing such request/ specification/ direction to SBI and the customer shall not claim any costs, charges and expenses in any relation to any non-disbursal by SBI due to any such delay by the customer.
The Bank reserves the right to collect any tax if levied by the State/Central Government and/or other Authorities in respect of this transaction.
FAQ’S about SBI Home Loans:-
How will SBI decide the loan amount I am eligible for?
Bank will determine your loan eligibility mostly by your income and repayment capacity. Other important factors include your age, qualification, number of dependants, your spouse’s income (if any), assets & liabilities, savings history and the stability & continuity of occupation.
Do I get tax benefits on the SBI home loan?
Yes. You are eligible for tax benefits on the principal and interest components of your Home Loan under the Income Tax Act, 1961. As the benefits could vary each year, please do check with our Loan Counselor about the tax benefits that you could avail on your loan.
Can I get a higher loan through my existing loan account to buy a new property?
Yes, you could go in for a ‘Top up Home Loan’ whereby your existing loan (which you took to buy your current home) could be transferred to the new house with additional funds for the incremental cost of the new house, subject to your loan eligibility. This means you can move into your new home without having to go through the hassle of pre-paying your existing loan.
What is an under construction property?
An under construction property refers to a home which is in the process of being constructed and where possession would be handed over to the buyer at a subsequent date.
Can I repay my loan ahead of schedule?
Yes, you can repay the loan ahead of schedule by making lump sum payments towards part or full prepayment, subject to the applicable prepayment charges.
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