With tens of thousands of branches spread over various geographical places has made SBI among the very accessible banks to acquire financing from.
SBI Home Loan Latest Updates
EMIs to become cheaper following SBI home loan interest rate cut
11 February 2019
State Bank of India (SBI) has reportedly cut home loan interest rate for loan sum up to Rs.30 lakh. This means that home loan borrowers will need to pay lower EMIs on those loans. On the other hand, the MCLR speed has been left unchanged for the month, meaning clients won't have to be burdened with the large EMIs. The statement was made after the Reserve Bank of India's (RBI) bi-monthly monetary policy inspection held during the previous week. The interest rate applicable to home loans around Rs.30 lakh non-salaried girls borrowers' vary between 8.90% and 9.00%. On the other hand, salaried girls borrowers can avail home loans up to Rs.30 lakh together with the speed of interest ranging between 8.75% and 8.85 percent. For other non-salaried people, the rate of interest rates related to the same loan amount falls between 8.95% and 9.05% while the interest rate relevant to other midsize clients lies between 8.80% and 8.90%.
Significant Features of SBI Home Loans:
- Lower interest rates as compared to other contemporary banks
- Low processing fees
- No hidden charges or administration fees
- Nil pre-closure fees making repayment simpler and more flexible
- An enormous network of branches Throughout the nation making it easy to See a SBI branch
- Exclusive packages depending upon individual needs of customers
- Interest is calculated on daily diminishing basis that reduces the overall interest paid
Eligibility Criteria of SBI Home Loan :
- Salaried
- The age of the applicant must be between 18 years and 70 years.
- The annual income must be atleast Rs.1.2 lakh per annum.
- Self-Employed
- The age of the applicant must be between 21 years and 70 years.
- The annual income must be atleast Rs.2 lakh per annum.
Documents Required Applicable to All 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 weeks
- 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
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Interest Rate of SBI Bank Home Loan:
SBI Home Loan not only offers attractive benefits and conditions for its home loan choices but it also offers low competitive rates on its mortgage.
As of 06 Apr 2019, the applicable interest rate for SBI mortgage 8.30% to 8.60% for women and 8.35% to 8.65% for overall customers. The aforementioned rates are irrespective of their loan amount.
Pradhan Mantri Awas Yojana By SBI Bank
The Government of India aims at creating Housing affordable for everybody by 2022. The initiative has been taken to provide houses to the middle and lower class people in India. The bank claims to offer you the lowest rates of interest with their home loans.
Qualified Loans Under the Scheme:
The Government of India has stated that all loan amounts that are less than Rs.30 lakh are eligible under this scheme.
SBI PMAY Rates of Interest for the New Borrowers:
The male borrowers can avail a rate of 8.40%. They could avail a reduction of about 20 basis points. As per the new prices, the female debtors can avail a reduction of around 25 basis points. Interest rate will remain the same for both midsize and non-salaried male borrowers.
Benefits of PMAY Scheme:
After a Person takes a Mortgage in the State Bank of India, he/she must fill up the Pradhan Mantri Awas Yojana form. The processing is going to be taken care of by the lender. In the event the individual is qualified under the scheme, interest subsidy will be credited to his/her bank accounts. As per someone's financial condition, he/she can apply for 3%, 4% or 6.5% interest subsidy.
Further Reading: Pradhan Mantri Awas Yojana
SBI Home Loan Schemes:
SBI provides a large range of home loan products to its clients. You can choose the best home loan strategy that suits your budget and requirement. SBI home loans come with exclusive packages and benefits to cater to the house finance needs of its customers. Following are a few of the home loan options available out of SBI.
SBI MaxGain Home Loan:
SBI provides a large range of home loan products to its clients. You can choose the best home loan strategy that suits your budget and requirement. SBI home loans come with exclusive packages and benefits to cater to the house finance needs of its customers. Following are a few of the home loan options available out of SBI.
Features:
- Min. Loan Amount – 5 lacs
- Max. Loan Amount – No upper limit
- Interest Rate – 0.25% over and above the existing home loan interest
- Higher Liquidity, Savings on total interest paid
- Pre-closure Charges - Nil
- Interest Rate – Floating 10.15%
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SBI Yuva Home Loan
The SBI Yuva house loan is tailored particularly for people that are young and usually taking loan to get their original home. The age qualification is between 21-45 decades. This loan grants a sum that's 20 percent over and above the normal amount of the loan. This house loan is excellent for new professionals and government workers. Under this strategy the house loan total repayment begins just after 36 month from the date of availing the loan. For your first 36 months just attention has to be paid back.
Features:
- Eligibility – 21-45 years
- Minimum Income – Rs.30,000 per month
- Pre-closure Charges - Nil
- Interest Rate – Floating 10.15%
SBI NRI Home Loan
As the name itself suggests, the NRI loan is tailored for Non-Resident Indians (NRIs) and for People of Indian Origin (PIOs). This loan is given to an individual who earns a regular income and whose minimum employment period (in India or abroad) is not be less than 2 years.
Features:
- Min. Loan Amount – 3 lacs
- Max. Loan Amount – No upper limit
- Eligibility – NRI or PIO
- Pre-closure Charges - Nil
- Interest Rate – Floating 10.15%
SBI Realty Home Loan
The SBI Yuva home loan is tailored especially for individuals who are young and generally taking loan for their first home. The age eligibility is between 21-45 years. This loan grants an amount which is 20% over and above the regular loan amount. This home loan is ideal for fresh professionals and government employees. Under this scheme the home loan full repayment starts only after 36 month from the date of availing the loan. For the first 36 months only interest needs to be repaid.
Features:
- Max. Loan Amount – 15 crores
- Loan Tenure – Up to 15 years
- Pre-closure Charges - Nil
- Interest Rate – Floating 10.15%
SBI PAL
SBI PAL house loan is a Pre-Approved Home Loan from State Bank of India. This loan does not rely upon the house to be bought. SBI grants its customers the freedom to avail the loan amount before deciding upon the property. This provides customers the needed confidence to negotiate boldly with builders/sellers regarding the purchase price of your property.
Features:
- Eligibility – Depends on the annual income of the applicant
- Tenure – Pre-Approved Letter of arrangement is valid for a period of 4 months
- Min Loan Amount – 10 Lacs
- Max Loan Amount – No upper limit
- Pre-closure Charges - Nil
- Interest Rate – Floating 10.15%
SBI Her Ghar Home Loan
SBI Her Ghar mortgage scheme designed especially for women applicants. A woman needs to be the only candidate or the principal candidate for this type of home loan. Additionally, the house for which home loan is being taken must be in the title of the girl applicant or she should be the primary owner in the event it of joint ownership. This house loan strategy by SBI aims at allowing women to own land and carries a social obligation Consistent with the empowerment of girls.
Features:
- Loan Tenure – 30 years
- Interest Rate – 9.40%
- Pre-Payment Charges – Nil
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More Housing Loans from SBI:
Apart from the above listed regular mortgage schemes by State Bank of India, there are numerous different options also which aim to uplift people from village and tribal areas of the nation. These strategies are in line with the business's commitment towards comprehensive country building.
Here are a few such housing schemes offered by SBI-
SBI Tribal Plus:
Tribal Plus housing loan from SBI is meant for customers who are from tribal locations or scenic regions where mortgage of land isn't offered. The loan is provided for building of a new home or apartment and for purchase of a new house. Under this strategy SBI also provides an option of accepting loan for the purpose of repair or renovation.
Features:
- Min. Amount – nil
- Max. Amount- 10 lacs
- Repayment Period – up to 15 years
GRAM NIWAS:
The Gram Niwas scheme from State Bank of India is aimed at providing housing fund to the clients from rural regions of the country. This home plan covers individuals from rural or semi-urban areas which have a population of less than 50,000 as per the 2001 census. Under this strategy, house loans can be availed for purchasing of land or house, renovation and repair of home and construction of house.
Features:
- Min. Amount – nil
- Max. Amount- 5 lacs
- Repayment Period – up to 15 years
SAHYOG NIWAS:
Sahyog Niwas scheme aims to provide home loans to self-help groups which have a good credit history. The bank lends to members of these groups under this scheme for purposes of buying of land or house and construction, repair or renovation.
Features:
- Min. Amount – nil
- Max. Amount- 50,000 per person of the self-help group
SBI Home Loan FAQ section
- How can I decide which SBI home loan fits my requirement?
SBI gives you the option of comparing home loan schemes and an online EMI calculator to help you plan your finances well in advance before availing a home loan.
- What are the various interest rates offered on home loans?
Interest rates vary with respect to the subscribing customer being a woman or otherwise. In the former case, the rate stands at 9.35% p.a while other customers are charged a interest rate of 9.40% p.a. These rates are irrespective of the actual loan amount.
- What is the processing fee charged by SBI for home loans?
SBI charges a low processing fee for its home loans. Upto 0.35% of the loan amount is charged. The amount can be maximum of Rs.11,500
- Can I pay off my SBI home loan earlier than the initial tenure?
Yes. You can pay off your SBI home loan earlier too, without a pre-payment penalty fee.
- Is there any security required for the SBI home loan?
Usually, the property that is purchased using the loan serves as the security. In some cases it is at bank’s discretion to ask for additional securities like insurance policies, fixed deposits etc.
- Is a guarantor required to sign my loan application?
Yes. A guarantor with all the valid and required documents need to sign your loan application.
- What kind of job makes me eligible for SBI home loan?
You can either be a salaried employee or self-employed for obtaining this loan. However, the only condition is that you should be earning a regular income and should be able to furnish proofs of the same.
- Can joint-applications be made for SBI Home Loans?
Yes. Joint applicants are welcome at SBI.
- Are there any tax benefits associated with SBI home loan?
Yes. Tax rebate under section 80C of the Income Tax Act is applicable.
- Are long-term home loans beneficial or short-term loans?
Long-term loans are beneficial in giving you the option and comfort of lower EMIs , however, short-term loans mean higher EMIs but lesser interest. A borrower can choose the option depending upon his financial status.
- How long does it take for my loan to get sanctioned?
If all the required documents are in place then your SBI home loan can be sanctioned in a few days.
- Where can I apply for SBI home loan?
With a network of over 17000 branches in India, SBI home loans can be applied at any of your nearest bank branch.
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