Try Applying for a higher Loan Amount as most bank reduce interest rates as loan amount increases
Try Adding the income of a co-applicant like a working spouse
Financebuddha can help you consolidate all your loans into one to increase your eligibility
State Bank of India (SBI) is the oldest commercial multinational bank of the Indian sub-continent and this is the reason that for many people it is the most reliable bank. Availing a home loan from SBI means that you are getting your house money financed through the most trusted public bank of India. The bank has special features to offer to everyone, with customized products.
Banks often introduce new policies with lucrative rates of interests for its new customers. This sometimes makes the existing customers feel left out where they think they are paying the extra higher amount. Thus, the need for the takeover of home loan arises. This is nothing but a feature to shift your home loan from one bank to another. With lucrative interest rates of SBI Home loans, you can now transfer your home loans to SBI too. In this, the pre-payment penalty is funded.
From where can you transfer the loan?
The State bank of India realizes the need for women empowerment. They believe that it is not just a man can buy a land or a property, but also a woman who can do the same. And so, at SBI, women are valued. The bank has a home loan scheme specially designed for women and their convenience.
The scheme is called 'Her Ghar' which aptly justifies its purpose.
An equitable mortgage property will be the security.
Loan Value |
Margin |
Up to INR 2 million |
10% |
INR 2 million to INR 7.5 million |
20% |
Above INR 7.5 million |
25% |
You would have often seen advertisements of government agencies like as Urban Development Authorities and Housing Boards, where they offer affordable housing to individuals. This is like a lucky draw in which the selected winners get a house. If you are lucky enough then you can get your name on the list. For this, you will have to pay roughly 10-20% of the amount of the property as Earnest Money Deposit (EMD). To finance this amount of Earnest Money Deposit (EMD), SBI has come up with this loan scheme which is called Loan for Earnest Money Deposit Scheme.
The loan amount will be given which is the least of the following options:
These hold true only if the following points are met:
Any third party guarantee would work which is trustable and good enough for the amount of loan waived.
Securities that are tangible in nature like NSCs/ IVPs/ TDRs/ LIC policy/ SBI Life policy, etc. which at least holds value of 50% of the loan availed. This is for permanent employees working in decent public and private organizations.
The loan will be disbursed by the issuance of a cheque or a draft by the bank in favour of the government housing agency which is concerned.
SBI believes that it is very important to take along every community and sect along to achieve the goal for development. So, the Tribal Plus Scheme was introduced by the bank to work for the welfare of people living in the hilly or tribal areas of North East India and areas coming in the vicinity of Chandigarh, Bhopal, Lucknow, Patna and Bhubaneswar. The loan is given to the individuals to buy homes or flats. Applicants can also buy old homes or flats not more than 10 years of age. The applicants can also apply for the loan if they want home extension, or improvement or renovation.
The maximum loan margin is 25%.
In case the house or flat is bought, the loan can be disbursed at one time. In case the construction of the loan is taking place, the loan might be disbursed in parts as the construction shows signs of progress.
No security will be required. A guarantee will be sought as per bank's existing norms.
Purpose of loan: The loan can be sanctioned if the applicant has applied for the purchase/improvement/construction/extension/renovation/repair/ of a property which is new/second-hand residential house/flat/plot of land or the purchase of
consumer durables/furnishings.
The premium: The premium of the home loan covered (optional) will be charged in the loan amount if availed by the customer.
Loan to value ratio: For loans below 2 million, the ratio is 90% maximum.
For loans more than 2 million, the ratio is 80% maximum.
The rate of interest: The interest can be regulated if there is change in the base rates and in that case, the bank can increase or decrease the EMI amount or can extend or reduce the loan tenure.
The change in rates: The revised rates of interests are shown on the notice boards of the bank branches or updated in the newspapers or in the passbook/statement of account. The customer is supposed to know this and pay the EMI as per the revised interest.
Unpaid EMIs: In that case, the bank holds the authority to levy a rate 2% higher than the normal rate in case of more than 30 days of non-payment of EMI or in case the cheque submitted is bounced. Also, a penalty of INR 250 will have to be submitted by the customer for depositing a cheque which bounced.
Loan duration: The maximum loan tenor is 30 years or age of the customer being 70 years, whichever comes earlier.
Security or collateral: If these are to be accepted by the bank, the security will be the land that is financed by the bank. Bank can also take the collateral in the form of Life Insurance policies, shares/ debenture, Government Promissory Notes, gold jewellery, etc.
Insurance: The loan must be insured against any untoward accident like fire, flood, earthquake, etc and the beneficiaries must be the bank and the borrower jointly.
Use of loan: The loan must be strictly used for the purpose that is mentioned in the application form by the customer and should be agreed upon by the bank and the borrower.
Inspection: The bank can inspect and detect the place against which the loan is incurred at the reasonable times. The visit will be made by a bank authorized officer or a befitting adult selected by the bank.
Defaulter: In case the loan is not paid by the due date, reminders will be sent to the customer. After this, a third party representative will be the jurisdiction who will have to follow the norms of the Indian Banks Association (IBA) on debt collection.
The foremost thing for the SBI Home loan is the trust towards the bank. The Brand Trust Report 2015 recognized as the SBI as the most trusted bank. This is because that it is a government managed bank and hence, safer than other banks in case of bankruptcy. The CASA ratio is among the bests among other banks, this means that rates of interests are lower. This is also because of the scale of operation. As per the home loan book value, the SBI is the largest home loan provider. The other banks follow the trends that are incorporated by the SBI. The NPAs of the bank are under controlled and this goes down to the fact that the bank performs a strict inspection before releasing the home loan. Therefore, there are chances that no legal issue will arise later. Also, since SBI is one of the oldest and most trusted banks, chances are that you or anyone of your family has a bank account in the SBI. This means that you might be in friendly relations with the staff and the manager where it can be easy to understand the processes of the loan.
You can easily apply for the SBI home loan by availing the facility through Finance Buddha. At Finance Buddha, you are working on a one stop destination to all your home loan queries. You can compare the loan eligibility, interest rate, documentation, security required, customer rating and reviews from all the prominent banks and frequently asked questions by other loan seekers like you and have your questions answered.
The eligibility calculator is easy to operate and requires very basic information to calculate your eligibility. What more? The attractive and comfortable user interface will prompt you to use the website more often and quickly. Also, the best part is that you can avoid the chances of going to the bank and getting your loan application rejected, which can affect your CIBIL score too. This can be done when you decide to check your eligibility through Finance Buddha. Also, you can directly apply through our website which cuts short your expenses of travelling to the bank and taking a day off from work. At Finance Buddha, we put the customers first. Make your loan experience pleasant and apply through our 100% safe and secure website. Don't worry, your details will not be disclosed to anyone and will be used just to check your eligibility.
The SBI Home Loans come with easy to meet eligibility criteria:
Minimum Age: 18 years when the loan is sanctioned.
Maximum Age: 70 years where the income over the years is assured.
Loan Amount: In most of the home loan plans, the maximum loan is not fixed. The amount of loan sanctioned depends on the following factors:
To increase your eligibility chances, the following standards should be met:
Within SBI the different types of loans has helped many individuals to compare and pick the best type of loan that is affordable and suiting their requirements. Under these schemes there also loan that can be offered for Non-Residents of India. However, the minimum loan amount for this should be ₹ 300,000 or above.
With effect from 10th May, 2017 the revised rates are implied on the SBI Interest Rates as per the announcements.
SBI Bank Home loan |
Details |
Interest Rate |
Starting @6.70% |
Lowest EMI |
₹ 645 per ₹ 100,000 |
Max Tenure |
30 years |
Processing Fee |
Up to 0.35% |
Prepayment, Foreclosure Charges |
Allowed with nil charges for floating rate loans |
Age
|
Min 18 and Max 70 years for Salaried |
Min 18 and Max 70 years for Self Employed |
1 year MCLR: 8% (with effect from 01.01.2017)
SBI Home Loan Special Interest Rates Valid up to 31.07.2017
Borrower Category |
Up to ₹ 3 million |
Women* |
35 bps above 1 year MCLR, ER: 8.35% |
Others |
40 bps above 1 year MCLR, ER: 8.40% |
Borrower Category |
Up to ₹ 3 million |
Women* |
50 bps above 1 year MCLR, ER: 8.50% |
Others |
55 bps above 1 year MCLR, ER: 8.55% |
Borrower Category |
Up to ₹ 3 million |
Women* |
35 bps above 1 year MCLR, ER: 8.35% |
Others |
40 bps above 1 year MCLR, ER: 8.40% |
Borrower Category |
Up to ₹ 3 million |
Women* |
50 bps above 1 year MCLR, ER: 8.50% |
Others |
55 bps above 1 year MCLR, ER: 8.55% |
Borrower Category |
Up to ₹ 7.5 million |
Above ₹ 7.5 million |
||
RG-1, 2 ,3 |
RG-4, 5, 6 |
RG-1, 2, 3 |
RG-4, 5, 6 |
|
Women |
1 year MCLR+50 bps, ER:8.50% |
1 year MCLR+60 bps, ER:8.60% |
1 year MCLR+65 bps, ER:8.35% |
1 year MCLR+75 bps, ER:8.75% |
Others |
1 year MCLR+ 55 bps, ER:8.55% |
1 year MCLR+65 bps, ER:8.65% |
1 year MCLR+70 bps, ER:8.70% |
1 year MCLR+ 80 bps, ER:8.80% |
Borrower Category |
Up to ₹ 7.5 million |
Above ₹ 7.5 million |
||
RG-1, 2 ,3 |
RG-4, 5, 6 |
RG-1, 2, 3 |
RG-4, 5, 6 |
|
Women |
1 year MCLR+ 60 bps, ER:8.60% |
1 year MCLR+ 70 bps, ER:8.70% |
1 year MCLR+75 bps, ER:8.75% |
1 year MCLR+ 85 bps, ER:8.85% |
Others |
1 year MCLR+ 65 bps, ER:8.65% |
1 year MCLR+ 75 bps, ER:8.75% |
1 year MCLR+ 80 bps, ER:8.80% |
1 year MCLR+90 bps, ER:8.90% |
Borrower Category |
₹ 2 million to ₹ 7.5 million |
Above ₹ 7.5 million & up to ₹ 30 million |
||
RG-1, 2 ,3 |
RG-4, 5, 6 |
RG-1, 2, 3 |
RG-4, 5, 6 |
|
Women* |
1 year MCLR+65 bps, ER: 8.65% |
1 year MCLR+75 bps, ER: 8.75% |
1 year MCLR+80 bps, ER: 8.80% |
1 year MCLR+90 bps, ER: 8.90% |
Others |
1 year MCLR+70 bps, ER: 8.70% |
1 year MCLR+80 bps, ER: 8.80% |
1 year MCLR+85 bps, ER: 8.85% |
1 year MCLR+95 bps, ER: 8.95% |
Borrower Category |
₹ 2 million to ₹ 7.5 million |
Above ₹ 7.5 million & up to ₹ 30 million |
||
RG-1, 2 ,3 |
RG-4, 5, 6 |
RG-1, 2, 3 |
RG-4, 5, 6 |
|
Women* |
1 year MCLR+75 bps, ER: 8.75% |
1 year MCLR+85 bps, ER: 8.85% |
1 year MCLR+,90 bps ER: 8.90% |
1 year MCLR+100 bps, ER: 9.00% |
Others |
1 year MCLR+80 bps, ER: 8.80% |
1 year MCLR+90 bps, ER: 8.90% |
1 year MCLR+95 bps, ER: 8.95% |
1 year MCLR+105,ER:9.05% |
Insta Home Top Up Loan (₹ 100,000 to ₹ 500,000) |
1% above 1 year MCLR, present ER: 9%, irrespective of Risk Grades, gender and occupation (No change). |
For Salaried Borrowers:
Category |
Term Loan |
Overdraft |
||
RG-1, 2 ,3 |
RG-4, 5, 6 |
RG-1, 2, 3 |
RG-4, 5, 6 |
|
1. TL up to ₹ 2.5 million |
1 year MCLR+,60 bps, ER: 8.60% |
1 year MCLR+70 bps, ER: 8.70% |
1 year MCLR+175 bps, ER: 9.75% |
1 year MCLR+200 bps, ER: 10.00% |
TL and Overdraft above ₹ 2.5 million and up to ₹ 20 million |
1 year MCLR+100 bps, ER: 9.00% |
1year MCLR+110 bps, ER: 9.10% |
1 year MCLR+ 200 bps ER:10.00% |
1 year MCLR+225 bps, ER: 10.25% |
Above ₹ 20 million and up to ₹ 50 million |
1 year MCLR+180 bps, ER: 9.80% |
1year MCLR + 190 bps, ER: 9.90% |
For Non - Salaried Borrowers:
Category |
Term Loan |
Overdraft |
||
RG-1, 2 ,3 |
RG-4, 5, 6 |
RG-1, 2, 3 |
RG-4, 5, 6 |
|
1. TL up to ₹ 2.5 million |
70 BPS above 1 year MCLR, ER: 8.70% |
80 BPS above 1 year MCLR, ER: 8.80% |
200 BPS above 1 year MCLR, ER:10.00% |
225 BPS above 1 year MCLR, ER: 10.25% |
TL and Overdraft above ₹ 2.5 million and up to ₹ 20 million |
1.10% above 1 year MCLR, ER: 9.10% |
1.20% above 1 year MCLR, ER: 9.20% |
225% above 1 year MCLR, ER: 10.25% |
250% above 1 year MCLR, ER: 10.50% |
Above ₹ 20 million and up to ₹ 50 million |
1.90% above 1 year MCLR, ER: 9.90% |
2.00% above 1 year MCLR, ER: 10.00% |
Processing Fee: 0.35% of the amount of loan and service tax as is applicable.
Minimum: INR 2,000/- and service tax as is applicable.
Maximum: INR. 10,000/- and service tax as is applicable.
Pre-closure fee: Nil
Partial Pre-Payment Charges: Nil
SBI Tribal Plus Scheme
Processing Fees: 0.25% of the loan amount will be charged as the processing fees.
Loan for Earnest Money Deposit Scheme
Interest Rate: It is charged 4.55% above MCLR which comes to 13.75% p.a. (w.e.f. 01.04.2016)
Processing Fees: Minimum 0.5% of the amount of loan availed (minimum which will be INR 100)
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