SBI Home Loan – Types of Loan, Benefits, Eligibility, and How to Apply

SBI Home Loan

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State Bank of India is an Indian public sector bank and financial services statutory body. SBI is the 49th largest bank in the world by total assts and ranked 221st in the Fortune Global 500 list of the world’s biggest corporations of 2020. It is also the 5th largest employer in India with nearly 250,000 employees. On 14th of September 2022, State Bank of India became the third lender and seventh Indian company to cross the 5 trillion market capitalization on the Indian stock exchanges for the first time.

SBI Home Loan

SBI Home Loan is an ideal choice for anyone. It offers home loan at lowest interest rate. You can apply for SBI home loan through both online and offline.

Features and Benefits of SBI Home Loan

There are various features and benefits of choosing SBI home loan. Some of them are discussed below.

• Affordable Interest Rates

SBI offers home loan at affordable interest rates. The rates may vary according to one’s eligibility. It offers concessional rates for women than regular home loan interest rates.

• Flexible Tenure

SBI provides flexible repayment tenure. You can easily repay your home loans in a tenure which is comfortable to you financially. SBI gives you tenure up to 30 years so that you can pay your loan amount in up to 30 years.

• Overdraft Facility

Overdraft facility is also available as well.

• Pre-approved Home Loans

If you are an existing customer of SBI, you may get a pre-approved home loans offer. Pre-approved home loans involve quick processing and minimum documentation.

• No Prepayment Penalties Levied

There are no prepayment penalties levied in SBI personal loan.

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Types of SBI Home Loan

State Bank of India offers wide range of home loan schemes so that applicants can choose their type of loan according to their eligibility and requirements. Some of the home loans offered by SBI are as mentioned below.

1. Regular Home Loan

With the use of regular home loan, you can construct your house, purchase an under-construction property, a pre-owned house etc. This regular home loan scheme is one of the most demanding home loans in India.

2. Home Top Up Loan

The customers who already have a home loan from SBI and want more money can take SBI top up loan. The money can be used for renovation/construction/extension or any other personal needs. SBI home top up loan can be used for any personal purpose. The rates are much lower than Personal Loan.

3. NRI Home Loan

This loan is for Non-resident Indians who are seeking to invest in property. It makes better sense from a financial perspective that you purchase a property through a home loan instead of going through personal financing.

4. Realty Home Loan

You can avail this loan to purchase a plot to start the construction of the house. The maximum loan offered under realty home loan scheme is INR 10 crore for a maximum of 15 years. Construction should start within 5 years from the date the loan is sanctioned.

5. Pre-Approved Home Loan

Under this, home loans can be sanctioned to the borrower before the finalization of the property, which also enables the borrower to do the negotiation easily.

6. Privilege Home Loan

This scheme is particularly designed for government employees including PSBs, PSUs, and other individuals with pensionable service. Maximum tenure of this scheme is 30 years with repayment up to the age of 75 years.

7. Home Top Up Loan

This loan offers customers the benefit of borrowing a specific amount on top of their Home Loan amount. This loan is beneficial for borrowers who need extra funds.

8. Smart Home Top Up Loan

This loan helps to fund any urgent necessity for any type of personal requirements. This includes expenditures that arise from marriage, repair/renovation of house, education, and healthcare.

Also Read: SBI Personal Loan

How can you Apply for SBI Home Loan

You can apply for SBI home loan through online, by visiting the nearest branch, through WhatsApp, through Wish Fin. In today’s digital world it is far better to apply online rather than offline. Customers can easily apply for home loan through online in just a few simple steps. Here is a step-by-step guide through which you can apply for the loan.

• Go to the official website
• Fill up the application form
• Submit all your required documents
• Get the sales agreement and construction agreement e-stamped
• Submit your application
• After submission of the application, the bank will check your income documents, all the legal documents will be verified
• After successful verification and inspection, the loan will be sanctioned
• After loan sanction, the bank then prepares a loan agreement which needs to be duly signed by the borrower.
• Your loan will be disbursed to your account in about 2 to 3 days

You can also apply for SBI home loan on WhatsApp. To apply you must follow these simple steps

• Give a missed call to 9555103000
• You will receive a message on your WhatsApp
• Answer all the questions asked by the chatbot
• Provide your full name, email ID and Date of Birth
• Mention your monthly income and residence city
• Provide your required loan amount
• Enter the value of the property

Eligibility Criteria

SBI offers home loan to both salaried and self-employed individuals. The eligibility includes age and nationality of the home loan applicants. Additionally, the bank also factors in the applicant’s credit scores, income, financial liabilities and property features and location. SBI home loan eligibility to non-salaried or self-employed applicants requires the firm to be in existence for at least 3 years with net profit earned in the last two years. SBI lenders usually approve home loans of applicants whose total EMI obligations including that of the proposed home loan, are within 50% to 60% of their total income.

Maximum Loan Amount for Different Monthly Salaries for Salaried Individuals

Interest Rate

The interest rates depends on the type of borrower, scheme type chosen by the applicant, and loan amount to be availed. Currently interest rate offered by SBI home loans starts from 8.05% per annum for women borrowers and 8.10% for others.

SBI Home Loan EMI Calculator

SBI home loan applicants can also use SBI home loan eligibility calculator to calculate and determine their eligible home loan amount. EMI calculator from SBI can be easily accessed online on the bank’s website. It just requires a few basic inputs such as the applicant’s monthly income, desired loan tenure, prevailing home loan interest rate and outstanding EMI obligations. Knowing your eligible loan amount before applying for SBI home loan will help you plan your finances in advance as per your loans affordability.

Documents Required

• Employer’s ID proof
• Address Proof
• Passport size photo
• Property related documents
• Last 6 months bank account statements
• Loan account statement for the last 1 year
• Last 3 months salary slips for salaried individuals
• Copy of Income tax returns for the last 2 years
• Qualification certificate for self-employed applicants
• Last 3 years profit and loss account statements
• Last 2 years Income tax returns etc.

FAQs

1. What is the minimum credit score required to apply for SBI home loan?

Ans: The applicants must have minimum credit score of 750 and above.

2. What is the average loan tenure of SBI Home Loan?

Ans: The maximum tenure is up to 30 years.

3. What is the maximum limit of SBI housing loan?

Ans: The maximum limit of SBI housing loan is INR 50 crores.

4. How long does it takes for SBI to approve the loan?

Ans: It may take around 3 to 7 working days to approve your loan.

Dev Kirtonia

Hi, I’m Dev Kirtonia, Founder & CEO of Dev Library. A website that provides all SCERT, NCERT 3 to 12, and BA, B.com, B.Sc, and Computer Science with Post Graduate Notes & Suggestions, Novel, eBooks, Biography, Quotes, Study Materials, and more.