SBI Home Loan

SBI Home Loans, India's largest mortgage lender, offers a wide range of home loans based on the requirement of the customers. It has helped over 30 lakh families to buy their dream home. Spread over 2400+ branches, it has got a team of 1600+ dedicated sales employees. SBI Home Loans is the winner of the 'Best Home Loan Provider' at the CNBZ Awaaz Real Estate Awards 2016 as well.

Update: SBI Slashes Home Loan Interest Rate for March 2021

SBI has slashed the interest rates for its home loans to 6.7% for all loans below ₹75 lakh. However, it is to be noted that this rate is made available only for customers with a good credit score as deemed by the bank, and can be availed only in the month of March. Processing fees will also not be collected during this period. The move is seen as an effort from SBI to rope in as many Home Loan customers as possible before the close of the Financial year.

SBI has also introduced a deposit scheme named SBI Wecare Deposit for senior citizens. The bank says that for this product, an additional 30 BBP or basis points premium will be payable to the retail term deposits of senior citizens who have deposits of “5 years and above” tenor.

In terms of deposits, assets, customers, employees and branches, SBI is the largest commercial bank. Additionally, it is also the largest mortgage lender. It commands 34% of the home loan market share and 34.86% of the auto loan segment.

Features and Benefits of SBI Home Loan

• It offers a wide range of products according to the needs of the customers.

• It offers low interest rates by calculating the interest on a daily reducing balance.

• It has no hidden costs and has a low processing fee.

• It is also available as an overdraft, which utilizes your surplus funds optimally.

• It reduces your interest burden by providing no penalties for prepaying the loan.

SBI Home Loan Interest Rates

Products	Interest Rates
SBI Home Loan Floating	7.20% - 7.80%
SBI Pal	7.20% - 7.80%
SBI Flexipay Home Loan	7.20% - 7.80%
SBI Realty	7.90% - 8.10%
SBI Gram Niwas	7.20% - 7.80%
SBI Tribal Plus	7.30% - 7.90%
SBI Home Loan Balance Transfer	7.20% - 7.80%
SBI Sahyog Niwas	7.20% - 7.80%
SBI NRI Home Loan	7.20% - 7.80%
SBI Bridge Loan	9.60% - 10.60%
SBI Shaurya Home Loan	7.20% - 7.85%
SBI Privilege Home Loan	7.20% - 7.80%
SBI Top Up Loan	7.60% - 9.65%
SBI Home Loan for Self Employed	7.20% - 7.85%
SBI Reverse Mortgage Home Loan	7.20% - 7.80%

Processing Fee

• 0.35% of the loan amount + service tax, minimum of Rs. 2,000 + service tax and a maximum of Rs. 10,000 + service tax 

• Out-of-pocket expenses for obtaining TIR/Valuation Report/CERSAI Registration, etc. are recovered separately

Pre-sanction

• Advocate's fee for Title investigation and Property search report

• Valuer's fee for the valuation report

Post-sanction

• Stamp duty for Loan agreement & mortgage

• Property insurance premium

• CERSAI Registration Fee - Rs 50 + GST up to Rs 5 Lakh limit in addition to Rs 100 + GST for above Rs 5 Lakh

Types of SBI Home Loans

Regular Home Loan

SBI Home Loans can be offered to those who want to purchase a ready-built property, under- construction property, pre-owned home or the construction/extension/repair/renovation of a house.

Eligibility

The age limit of a Resident Indian is 18-70 while the Loan Tenure is up to 30 years.

Balance Transfer of Home Loan

With the help of SBI Balance Transfer of Home Loan, the customer can transfer home loan from Scheduled Commercial Banks (SCBs), Housing Finance Companies (HFCs) registered, Private and Foreign Banks with National Housing Bank (NHB) and Borrower's employers in case if they are State/Central Govt. or their undertakings/Public Sector Undertaking.

Eligibility

A Resident Indian of 18-70 years as age limit with an extended Loan tenure is eligible.

NRI Home Loan

SBI NRI Home Loan allows many NRIs to get home loans when investing in properties. Financially, it is better to purchase a property through a home loan rather than through personal financing.

Eligibility

Eligibility for Non-Resident Indians (NRIs) or Persons of Indian Origin (PIOs) is between 18 - 60 years with a Loan Tenure of up to 30 years.

Flexipay Home Loan

SBI Flexipay Home loan provides eligibility for higher loan amount exclusively for the salaried borrowers. It offers customers an option to pay only interest during the pre-EMI period. This variant of home loan is beneficial for young earners.

Eligibility

A Resident Indian with a minimum age of 21 - 45 years can apply for this loan with a loan tenure of up to 30 years.

Privilege Home Loan

SBI Privilege Home Loan is launched exclusively for government employees. Individuals who are employees of Central/State Government which includes PSUs, PSBs of Central Government, and other individuals who have available pension service to apply for this home loan. The amount of loan will be determined by considering factors such as applicant income, repayment capacity, assets and liabilities, age, cost of proposed property, etc.

Eligibility

A Resident Indian of 18-75 years of age with a loan tenure of up to 30 years is eligible.

Home Top Up Loan

SBI Home Top Up Loan is offered to those customers to borrow a certain amount over their home loan amount. If the customer who already has a home loan requires more funding, can apply for Home Top up loans. The interest rates are lower than usual personal loan interest rates.

Eligibility

A Resident Indian of 18-70 years of age with a loan tenure of up to 30 years is eligible.

Bridge Home Loan

SBI Bridge Home Loan is offered to those homeowners who aspire to upgrade their homes to better locations or bigger homes by selling their existing homes.

Eligibility

A Resident Indian of 18-70 years of age limit with a loan tenure of up to 2 years is eligible. A minimum of Rs. 20 lakhs and a maximum of Rs. 2 crores can be offered.

Smart Home Top Up Loan

Smart Home Top up loan is offered for urgent requirements on personal purposes such as meeting expenditures on education, marriage, health care, and repair/renovation/furnishing of the house, etc.

Eligibility

• A Resident Indian or NRI between 18 - 70 years, with a loan tenure of up to 20 years

• The Loan Amount can be up to Rs. 5 lakhs

• You must have a minimum of 550 as credit score

• Satisfactory repayment track record of more than one year, after completion of moratorium

• No other Home Top-up/Insta Home Top-up loans should be active

Insta Home Top-Up Loan

Insta Home Top-Up Loan is made available to our pre-selected Home Loan customers over the internet banking platform.

Eligibility

• You must have an existing Home Loan with minimum Limit of Rs. 20 lacs with INB facility

• A Minimum residual Home Loan tenure of 5 years

• A good track record of 3 years or more

• A Loan Amount of Rs. 1,00,000 - 5,00,000 can be sanctioned

• You must have a credit score of 550 or higher

• No other Home Top-up/Insta Home Top-up loans must be active

Corporate Home Loan

Home Loans for corporate entities for the construction/acquisition of residential units in the name of the company for directors/promoters/employees.

Eligibility

• Must be the existing borrower/a debt free Company.

• Must be in the line of business for a minimum of 3 years.

• Must have earned uninterrupted Net Profit in the last 3 years.

• Existing loan accounts of the Company should be regular and standard; and should not have been restructured during the last 3 years either. 

• CRA of SB-8 and better for both existing SME/C&I customers and new customers.

• ECR of BBB and better for units having a total exposure of Rs.10 crores and above.

Home Loan to Non-Salaried – Differential offerings

This product is designed for Non-Salaried Individuals. Home Loans for the construction/acquisition of a residential house/flat, takeover of Home Loans from other Banks/HFCs and repair/renovation of an existing house/flat.

Eligibility

A resident Indian of within 18-70 years of age limit and a loan tenure of up to 2 years is eligible. A minimum of Rs. 50,000 and maximum of Rs. 50 crores can be offered.

Tribal Plus

Tribal Plus is designed especially for the hilly/tribal areas for the purpose of purchase/construction of a new house/flat, purchase of an existing house/flat which is not more than 10 years old, and repair/renovation/extension of an existing house or flat.

Eligibility

A Resident Indian between 21 - 60 years of age with a Loan Tenure of up to 15 years. A maximum of Rs. 10 lakhs can be given as loan amount.

Earnest Money Deposit (EMD)

EMD scheme is designed keeping in mind the financing needs of applicants looking for earnest money for booking of residential plots/built-up houses that are sold by Government Housing agencies and Urban Development Authorities like HUDA, PUDA, and Housing Boards.

Eligibility

• A Resident Indian with a minimum age of 21 years capable of making a lump sum repayment

• A loan amount of Rs.15.00 lakh for CSP/DSP account holders and Rs.10.00 lakh for others

Reverse Mortgage Loan

SBI Reverse Mortgage Loan offers an additional source of income for the senior citizens of India, who have a self-occupied/self-acquired home in India.

Eligibility

1. A Resident Indian with a minimum age of 60 years for the single borrower.

2. Spouse’s age should be more than 58 years for joint borrowers.

3. Loan Tenure is 10-15 years depending on the age of borrowers.

4. The Loan Amount offered is between 3 lakhs and 1 crore.

CRE (Commercial Real Estate) Home Loan

CRE Home Loans are for those who already own two houses or more and need funding for owning their next home. The maximum number of flats/houses/residential plots is restricted to 3 under CRE Home Loans.

Eligibility

A Resident Indian of 18-70 years of age with a Loan tenure of up to 30 years.

Loan against Property (P-LAP)

You can avail loan against property for fulfilling your personal needs such as meeting expenditure on marriage, education, healthcare, etc. It will not be permitted for business purposes.

Eligibility

A Resident Indian of 18-70 years of age, with a loan tenure of up to 15 years.

Other Schemes Available at SBI

Some of the other schemes available are – SBI Green Home Loans, SBI Maxgain, and SBI Suraksha.

SBI Green Home Loans

This is especially for incentivizing borrowers who go for Green Projects, i.e., for those projects that promote Renewable Energy and lower Carbon Emission.

SBI MAXGAIN

SBI Maxgain Home Loans is sanctioned as an Overdraft, and the customers have to remit the EMIs in case of usual Home Loans, the Drawing Power on the Overdraft is reduced monthly to principal component of the EMI so that the end of the loan tenure liquidates the Overdraft.

SBI Suraksha

SBI offers life insurance that is linked to the housing loan and the repayment is spread over the entire tenure of the loan in EMIs.

SBI Home Loan Documentation Process

Basic Documents 

• Duly filled loan application

• Identity Proof (Driving License/Voter ID Card/Passport/Pan Card)

• Proof of Residence (Current Address Proof)

• 3 passport-size photographs

• Bank Statement for the last 6 months

• Personal assets and liabilities declaration

• Proof of property

• Income Tax Proofs (if required)

• Signature Identification from the present banker

Personal Documents

• A Duly filled loan application (either offline or online)

• 3 self-attested passport-size photographs

• Proof of identity (Photocopy of voter ID card/Passport/Driving license/Aadhar card/PAN card)

• Residence proof (photocopy of recent telephone bill/electricity bill/bank statement/property tax receipt)

• Proof of business address (non-salaried individuals)

• Bank account statement/updated passbook of 6 months

• Signature identification from the present banker

• Personal assets and liabilities statement from the loan seeker

Documents for Guarantor (if required)

• Personal assets and liabilities statement

• Proof of identity 

• Proof of residence 

• Business address proof to demonstrate that he/she works

• Signature identification from his/her present bankers

Documents Required for Salaried Persons

• Original salary statement/salary certificate from the individual’s employer

• Form 16 (TDS)/copy of IT returns for the last 2 financial years

Note: The AGM (Region)/AGM (RACPC)/AGM (Branch) can relax the requirements in terms of Home loan documentation based on certain criteria for salaried persons if the sanctioning authority is satisfied with the genuineness of the amount, source, and continuity of income. In all such cases, the basis for verification of income must be appropriately recorded in the loan appraisal document, and then it is submitted to the bank.

• A revocable letter of authority vide annexure/HL-C

• A letter from the employer vide annexure/HL-D

• An irrevocable letter of authority where the applicant is drawing & disbursing officers vide annexure/HLE

Additional Documents(Professionals, Self-employed or Others)

• Acknowledged and verified copy of 3 years IT returns/Income Tax Assessment Order

• Photocopies of challans that demonstrates the payment of advance income tax

Property Documents

• Sale deed, agreement of sale, original share certificate that is issued by the society

• A copy of the approved plan of the proposed proposal for the construction, purchase, extension of the apartment, house or flat

• Permission for the construction of the house by the authority designated for the same

• The estimated budget of the construction plan

• Valuation report from approved valuers such as Chartered Engineers/Architects concerning the financed property

• Letter of allotment from the housing society, board/private builder

• Possession certificate, building, and tax paid receipts, location sketch of the property certified by the revenue authorities

• Original receipts of advance payment towards the purchase of a flat

• Original copy of homeland tax paid receipt & possession certificate issued by the revenue authorities

• Original NOC document under ULCR Act of 1976

• Non-encumbrance/search report for the last 13 years from the bank’s advocate

• Copy of the relative order if there is a conversion of agricultural land

• Original No Objection Certificate from the housing society/builder

• A detailed estimate of the cost of construction

• Letter from the builder, society/housing board intimating their account number and the name of their bankers for alimony installments

Other Additional Documents

• Report from the lawyer as per the format approved by the LHO

• Valuation report from the empaneled valuer as per the standard format approved by the concerned LHO

• Certificate from the architect/structural engineer certifying the conditions of the house/flat

• Valuation certificate from a government-approved lawyer

• Declaration by the borrower as per the guidelines of Annexure-A agreeing that the construction would be completed within the stipulated period

SBI Home Loan Procedure

Application Through SBI Branch

To apply for SBI Home Loan, follow the step-by-step procedure mentioned below:

• Keep the property related documents ready.

• Take all the required legal documents to an advocate who is a part of the SBI panel and get them verified.

• After the legal valuation, the property must be evaluated by a property valuation personnel belonging to the SBI panel. You will be given a letter after the valuation.

• It is mandatory that the Sales and construction agreement is e-stamped or franked. The e-stamping value differs based on the value of your property. Franking will be done at the registration office, while e-stamping will be done at select registered offices, syndicate banks, post offices.

• Now, the loan seeker must visit the branch along with the documents and the application form.

• The waiting period for the loan approval may vary from person to person. The loan can be disbursed within three days by a special home loan. However, periodic follow-ups are required.

• After the loan is sanctioned, you must submit some more documents, including the following:

  • Two e-stamp worth Rs.400, where you are the first party, and SBI is the second party.

  • Rs.200 worth e-stamp, where the parties are the same as above.

  • Rs.200 worth e-stamp, where the first party is the guarantor and SBI is the second party.

  • All documents submitted at the time of loan application.

  • Cheques in favor of SBI.

  • You and your guarantor must be present at the bank with all the mentioned documents.

• Once the loan is sanctioned, the loan seeker must attain the following documents from the builder:

  • If the property is under construction, you must get the Tripartite agreement.

  • A NOC or No Objection Certificate stating that the property is not mortgaged anywhere else.

  • Demand note from the builder that matches the payment schedule.

• Verify the stamp duty before the registration process, and inform the bank of the same. After the registration, an officer from the SBI bank visits you to hand over the DD to the builder or you may be asked to collect it from your branch.

Application Through SBI Home Loans Online

• Visit the SBI Home Loans website.

• Select the Apply Online option.

• Fill in the income and property details.

• Select the type of home loan based on your eligibility and requirements.

• Fill in the application form, and then wait for the approval.

Application Through mymoneykarma for Balance Transfer and Top-up Loans

• Visit mymoneykarma Home Loans Portal.

• Fill in your name, Email address and phone number.

• Our customer care executive will get in touch with you and give you the best and the lowest interest rates.

• After you select the bank you want to transfer to, an executive will be sent to your home/office to collect the required documents.

• After verification, your loan will be approved.

Reasons for SBI Home Loan Rejection

SBI home loan rejection can happen due to the following reasons:

• Not falling under the age limit

• Insufficient income

• Unstable employment

• Low Debt-to-Income Ratio

• Low credit score

• Working in a delisted private company

• Living in an address which is present in the defaulter list

SBI Home Loan Eligibility Based on the Value of Property

You may not receive the entire property value when you apply for a loan. Mentioned below is the maximum home loan that can be sanctioned based on the value of the property:

• If the value of the property is less than 30 Lakhs, 90% of the amount can be sanctioned.

• If the value of the property is greater than 30 Lakhs and less than 75 Lakhs, 80% of the amount can be sanctioned.

• If the value of the property is greater than 75 Lakhs, 75% of the amount can be sanctioned.

SBI Home Loan Eligibility Based on the Salary

Eligibility Criteria	SBI Home Loan
Eligible Age of Borrower	18 – 70 Years
Minimum Eligible Income	Rs. 25,000 and above
Loan Amount Eligibility	Maximum 3 Crores
Work Experience for Salaried	2 Years
Tenure	Up to 30 Yrs
Interest Rate	7.60% Onwards
Processing Fee	0.35% of the loan amoun

The table given below shows the approximate loan amount that can be sanctioned based on the age, maximum loan tenure. The EMI amount is between 40-65% of the net income or in-hand salary. In this table the EMI is taken as 65% of the Net Income and the rate of interest is taken as 8.55%.

Age	MaximumLoan Tenure	Loan amount (in Lakhs) for Salary (25,000)	Loan amount (in Lakhs) for Salary (50,000)	Loan amount (in Lakhs) for Salary (75,000)	Loan amount (in Lakhs) for Salary (1,00,000)
25 years	30 years	21.03	42.07	63.11	83.76
30 years	30 years	21.03	42.07	63.11	83.76
35 years	25 years	20.09	40.19	60.28	80.38
40 years	20 years	18.65	37.31	55.97	74.62
45 years	15 years	16.45	32.90	49.35	65.81
50 years	10 years	13.07	26.15	39.23	52.31

How to Calculate Home Loan EMI

There are a lot of EMI calculators available online. You can calculate the Home Loan EMI here at mymoneykarma.

Top Banks Offering Lowest Home Loan Interest Rate in 2019

Home Loan Provider	Home Loan Interest Rates	Processing Fees	Prepayment Charges
Yes Bank	9.85%	0.5% of loan amt. or Rs.10,000 whichever is higher (+GST)	NIL for floating rate loans
SBI	8.55%	Rs. 0 – 10,000	NIL
HDFC Bank	8.65%	Up to 0.5% of loan amt	NIL
ICICI Bank	8.80%	0.5% – 1.00% of loan amt.	NIL
PNB Housing Finance	9.10%	Up to 1% of loan amt	NIL
Axis Bank	8.90%	Up to 1% of loan amt	NIL
IDBI Bank	8.75%	0.5% of the loan amount	NIL
Punjab National Bank	9.05%	Nil	NIL
Canara Bank	8.70%	Varies based on applicant profile	NIL
Bank of Baroda	8.70% - 9.70%	0.25-0.50%	Nil for floating rate loans
Kotak Bank	8.90% - 8.75%	Maximum 2% of the loan amount + GST( it varies as per the loan amount)	6% of the foreclosure loan amount within one year and 5% plus GST otherwise.
IndusInd Bank	9.50%	Up to 2%	NIL
RBL Bank	10.45-11.80%	Rs. 5000-15000	Nil for floating rate loans
Andhra Bank	8.75%	0.5% of the loan amount	NIL

NEWS

SBI announced the introduction of repo rate linked home loans from 1 July 2019. It will pass on the repo rate cut of 25 bps that is announced by the Reserve Bank of India to some cash credit borrowers. SBI also announced slashing of effective repo-linked lending rate for cash credit/overdraft, which will be in effect from 1 July 2019.

SBI said that the benefit of reduction in the repo rate by 25 bps had been passed in its entirety to our cash credit/Overdraft customers (limits above 1 lakh). The effective repo-linked lending rate (RLLR) for cash credit/overdraft customers is now 8%; while for savings deposits above 1 lakh, the new rate would be 3%. In March, the bank had linked all cash credit accounts and overdrafts with limits above 1 lakh to the repo rate plus a spread of 2.25%. It had set its savings deposit rates to 2.75% below the repo rate for above 1 lakh.