SBI Home Loan
Home Loan Bank Information
Table of Contents
- SBI Home Loan Features
- SBI Home Loan Interest Rates
- SBI Home Loan Eligibility
- SBI Home Loan Schemes
- SBI Home Loan for NRI or PIO
- How to Apply for SBI Home Loan
- Checklist of Documents for SBI Home Loan
Introduction
SBI or State Bank of India is one of the largest banks in India. Headquartered in Mumbai, Maharashtra State Bank of India currently has 23% of the asset market share and also own nearly one-fourth of the total loan and deposit markets.
SBI is a multinational public sector bank and financial service operating in India, it also ranked 216th in the fortune’s list of the biggest corporations of the world in 2018
The roots of the banks start from Bank of Calcutta founded in 1806, later two other presidency banks, Bank of Bombay and Bank of Madras were merged with Bank of Calcutta and a new Institution was formed as Imperial Bank of India. Imperial bank of India was later renamed to State Bank of India in 1955.
State Bank of India has a strong presence in the domestic market in India. SBI has nearly 24000 branches spread all over India in various cities and villages. The domestic market share revenue contributes upto 90% share for SBI.
State Bank of India has nearly 200 International branches spread across 36 countries in the world, which is the highest international presence for any Indian bank.
From the first international bank started in Mauritius till now State Bank of India has branches now in Sri Lanka, the United States, Nigeria, Nepal, Moscow, Indonesia, Shanghai, Kenya and South Korea.
With helping over 30 lakh families to achieve their dream of owning a home, SBI Home Loans is the biggest mortgage provider in the country. SBI Home loan is voted as “The Most Preferred Home Loan Provider” in AWAAZ Consumer Awards along with the “Most Preferred Bank” as per the survey conducted in 21 cities across India by TV 18 in association with AC Nielsen-ORG Marg.
An SBI bank customer can also avail the benefits of Pradhan Mantri Awas Yojana or the CLSS scheme through their Home loans. Depending upon the amount of financing and tenure,you will be able to find a scheme that is a perfect match for your home loan needs.
SBI Home Loan Features
- Low-Interest Rates = starting with as low as 8.40% SBI provides one of the lowest interest rates in the country
- Low Processing Fee = 0.35% of the loan amount plus service tax, Minimum of Rs. 2,000or- plus service tax and Maximum of Rs. 10,000or- plus service tax
- No Hidden Charges = All the charges are conveyed well in advance and mentioned in their website as well.
- Home Loan products to suit every customer need =Different product for different needs depending upon your amount and tenure
- No Pre Payment Penalty
- Interest charges on Daily Reducing Balance
- Repayment up to 30 years
- Home Loan Available as Overdraft
- Interest Concession for Women Borrowers
SBI Home Loan Interest Rates
SBI Home Loan provides the best interest rates starting from 8.40%. It varies depending upon the loan amount, occupation, income, etc.
| Loan Slab | Interest Rates Per Annum |
|---|---|
| For women (limited to Rs 30 lakhs) | 8.55% |
| For others (limited to Rs 30 lakhs) | 8.60% |
| For women (Rs 30.01-75 lakhs) | 8.80% |
| For others (Rs 30.01-75 lakhs) | 8.85% |
| For women (Rs 75.01 lakhs-Rs 1 crore) | 8.90% |
| For others (Rs 75.01 lakhs- Rs 1 crore) | 8.95% |
| For women (Rs 75.01 lakhs-Rs 1 crore) | 8.90% |
| For others (Rs 75.01 lakhs-Rs 1 crore) | 8.95% |
Note: Interest rates are as of 2019
State Bank of India has interest rates of home loans in the range of 8.40% to 9.05%, with special discounted rates for ladies borrowers for whom the bank offers the lowest interest rate of 8.40%.
With effective from 01st July 2019, SBI started Repo rate linked Housing loans.
RBI has recently shifted to MCLR from the base rate, to improve the policy rate transmission to the borrowers. Before the launch of MCLR, it was observed that despite the reduction in Repo rate basis point by the central bank, there was no reduction in the interest offered to the borrower by the commercial banks.
For instance, the repo rate fell from 6.50% to 6% Jun-Aug 2017, but the benefit of the same was not passed on to the borrowers of the commercial bank, SBI’s past 3 – year MCLR rates remained standard at 8.15%. Even in Feb-May 2019, the repo rate fell by 50 basis point, but MCLR fell just by 21 basis points.
The reason behind this was commercial banks were being subjective and were not comfortable with transferring the rate cuts to their borrowers.
The new Repo Rate linked product will ensure greater transparency by making the process automated. This means that a cut in 35 basis point in Repo rate will result in 35 basis point cut in the home loan of the borrowers.
SBI Home Loan Eligibility
Depending upon the product, the eligibility criteria varies for SBI Home loan, the same has been described further in the article. Below are the primary criteria that an individual must have to avail any loan.
Individuals: salaried, professionals, self-employed and business people.
| Factor | Eligibility Criteria |
|---|---|
| Age of Borrower | 18 – 70 years |
| Minimum Eligible Income | Rs. 25,000 and above |
| Work Experience for Salaried | 2 years |
| Business Stability for Self Employed | 5 years |
| Loan Amount Eligibility | Rs. 15 Lakh to Rs. 10 Cr Maximum |
| Maximum loan as a percent of property value | Upto 90% Maximum |
| EMI as a percent of income | Up to 65% |
Eligibility Based on Age
As for applying for the home loan age is a very critical factor, banks take special care for the age of the person applying for the loan. Banks have set standards for minimum and maximum age bars for application for the loan.
State Bank of India like all other banks,also has several guidelines in this matter. It always prefers the age on the minimum side of the applicant as then the applicant has enough time to repay the loan.
To be eligible for the home loan, you must be at least 18 years old. The age at which you try to avail the loan is very important, lower your age, higher is the duration you get to repay the loan with, maximum being 30 years duration.
Eligibility Based on Income
Banks give very special attention to the income of the person applying for the loan. The net income of the person is taken into consideration while the person applies for the loan. Net income is the total income left after deduction of taxes, employee fund, gratuity, and other deductions.
Your net home salary is one of the prime factor taken into consideration while providing a home loan. As it determines your capacity to pay the EMI post your daily expenses considering your lifestyle. The higher your net take-home salary,the higher the loan amount you will be eligible for.
The applicant can also add other members of the family as co-applicants in the loan to increase the amount of net income.
Eligibility Based on Nature of Employment
Nature of employment is also one of the key factors banks check during the application for the loan is under process. If the applicant is employed in a high position and with a good company also if his work history has been good, the applicant is always given priority.
The nature of employment or how the person has performed in the past as far as his employment is concerned to play a vital role, a person changing the job every six months will find it very hard to get the approval for the loan, even if his net income if high in the current job.
SBI requires a minimum of 2 years of minimum income history and job stability of at least two years. They also do the background check of company and sector in which you are working.
Eligibility Based on Value of the Property
State Bank of India does not provide the loan on the complete value of the property. The LTV ratio also called as Loan to Value Ratio, is the amount of money that banks give for the purchase of the property to the total value of the property. LTV ratio is mostly the same for most banks in India.
State Bank of India gives 90% of the loan for the property up to 30 lakhs; it gives loan up to 80% for the property which is above 30 lakhs and under 75 lakhs and finally, it gives only up to 75% for the property which is above 75 lakhs.
Banks generally set these criteria to have safety cushion for themselves in case of any unfortunate event like the applicant not paying the loan happens.
Eligibility Based on CIBIL Score
CIBIL or credit score is a numeric representation of the credit history of a person if the applicant has taken any loan or credit and has returned the same in the given time without having any default the credit score of the person is raised.
While if the applicant has defaulted the payment or there is some issue with the applicant while repaying the loan, the CIBIL score is automatically reduced.
Banks take special attention in checking the CIBIL score of the applicant, more the credit score easier for the applicant to get the loan while the less the score it becomes more hard for the applicant to secure the loan for the property.
SBI Home Loan Schemes
India is a diverse country with people from different background, caste, culture as well as different means of livelihood.
There are salaried individuals, business owners, Government servants, defence forces, investors, etc. Everyone has their specific requirements. Hence, there cannot be one size fits all loan scheme.
Keeping this diversity in mind, SBI has come up with various schemes as per your economic status and needs.
The interest rate for SBI home loan range from 8.40% to 9.05%. SBI offers lower interest rates to special borrowers with the lowest interest rate offered to lady borrowers at 8.40%.
| Product | Interest Rate |
|---|---|
| SBI Home Loan Floating | 8.55 % to 9.05 % |
| SBI Flexipay Home Loan | 8.55 % to 9.05 % |
| SBI Realty | 9.15 % to 9.45 % |
| SBI Pal | 8.55 % to 9.05 % |
| SBI Tribal Plus | 8.55 % to 9.05 % |
| SBI Gram Niwas | 8.55 % to 9.05 s% |
| SBI Sahyog Niwas | 8.55 % to 9.05 % |
| SBI Balance Transfer Home Loan | 8.55 % to 9.05 % |
| SBI Bridge Loan | 10.90 % to 11.90 % |
| SBI NRI Home Loan | 8.55 % to 9.05 % |
| SBI Privilege Home Loan | 8.55 % to 9.05 % |
| SBI Shaurya Home Loan | 8.55 % to 9.15 % |
| SBI Home Loan for Self Employed | 8.55 % to 9.15 % |
| SBI Top Up Loan | 8.90 % to 11.45 % |
| SBI Reverse Mortgage Home Loan | 8.55 % to 9.05 % |
| SBI Repo Rate Linked Home Loan | 8.40 % to 8.80 % |
SBI Home Loan for NRI or PIO
Depending upon the requirement of the customer segments, SBI has designed various customised schemes to meet everyone’s loan requirements. Some of the popular products with their basic features are listed below:
Housing Finance Scheme for NRI and PIO
NRI- Non-resident Indians or PIO-Person of Indian origin are the people living outside India for the livelihood. These people, when aspire to own a house or to construct a property, can apply for the loan with State Bank of India under this scheme.
State Bank of India has particularly designed the schemes to cater to this particular segment of the Indian market especially.
When buying a property or constructing a house in India, these people can come under the pressure of many law and regulations which they may not be aware of, to help and solve this problem State Bank of India has taken special care in designing this product for the NRI and PIOs.
State Bank of India has a team who are experts in finding the best investment opportunities across India; these expert teams are responsible for informing the customer about all the details.
To apply for the loan under NRI and PIO,certain eligibility criteria must be met:
| Minimum age required | 18 years |
|---|---|
| Maximum age limit | 60 years |
| Resident type | NRI or PIO |
| Loan tenure | Up to 30 years |
Special features of NRI and PIO loan:
Low processing fee: State Bank of India charges just 0.35% of the entire loan amount.
This is a minimum of Rs. 2000or- and maximum of Rs. 10000or- plus service tax. Any other expenses like obtention of TIRorvaluation report, CERSAI or registration, etc. are charged separately to the NRI loan applicant.
State Bank of India’s home loan for NRIs and PIOs is very famous among the Indians staying in the United States, the United Kingdom, Singapore. The loan has stood the test of time in providing value to the customers.
Housing Loan for High Net Worth Individuals
India is one of the fastest-growing nations in the world; this growth and development have come largely due to the entrepreneurial and business-minded class of India.
India is also one of the top countries in the number of millionaires and billionaires. This class of people also need a loan,and they do not need a loan like ordinary people.
Their need is large and is largely to finance any business, to start a new factory, to start a new business, etc.
State Bank of India has taken special take of this class of people as well. HNIs or High Net Worth Individual is the individual whose capacity to invest exceeds two crore rupees.
It is assumed that this class of people never need money;however, the reality is the opposite. High net worth individuals are often rejected by many conventional loan providers as there is more of the risk in giving a loan of such a high amount.
Below are some of the benefits of availing Loans for High Net Worth Individuals:
High loan amounts: Once the approval for the loan is done, there is no need for any other loans for the individuals taking it. The loan ranges from 5 crores to 25 crore rupees.
Enough flexibility: Loans availed under High Net, Worth Individuals scheme, offer great repayment plans, and the repayment plans are often tailored according to the need of the particular individual.
Less processing fees and interest rates: State Bank of India offers very competitive interest rates for the applicants applying under the HNI scheme. The processing fees is also one of the best for these individuals.
Flexible eligibility: Individuals applying for these loans should not necessarily have to be High Net Worth Individuals, as long as they meet the criteria set by the bank, they can avail the loans.
Amount of loan that can be taken under this scheme
High net worth individuals belong to an elite class. The lenders are very less to give loans to this class of people as there are many government regulations and also there is a greater amount of risk if the borrower happens to be a defaulter.
The loan amount in this category happens to be in the range of 5 to 25 crore
SBI Home Loans for Non-resident Indians
According to data released, more than 30 million Indians are residing outside the country.
Anyone who has stayed in an outside country for more than 182 days is legally classified as a non-resident Indian according to the Government of India.
State Bank of India has a solid network in many countries like the United States, The United Kingdom, Australia, New Zealand, and other developed countries, where most of the Non-resident Indians reside.
The person staying in other countries can approach the State Bank of India via any mode of contact,and his loan process can be started.
The applicant for the loan has to assign a person to handle the power of attorney so that without coming to India all his loan procedures are handled by the person who has been assigned a power of attorney.
State Bank of India assigns a special team for handling the request of a home loan applicant under this scheme.
This team is solely responsible for each and everything that has to be done for the approval of the loan for the person applying for the loan under this scheme.
Who is exempted from this loan?
Indian citizens staying in Pakistan, Bangladesh, China, Sri Lanka, Iran, Afghanistan, Bhutan, and Nepal are not allowed to take a loan under this scheme.
All other Indians staying in other countries are allowed to take the loan.
What are the requirements?
The minimum requirements are as follows
| Work Experience | Minimum 2 years in the same company |
|---|---|
| Age | 18 to 60 years |
| Loan amount | Case to case basis |
| Interest rates | Case to case basis |
| Processing fees | Rs 2000 to 10,000. |
| Nationality | Indian |
What documents are required?
- The applicant must have an employer ID card
- Address proof in which currently oversees address should be mentioned
- Copy of CDC (continuous discharge certificate) for the applicants who are in the Merchant Navy
- Valid passport and visa (attested copy)
- PIO card (issued by the government of India)
- The documents should be attested by FOs or Rep.Indian Embassay or Consulate.
- Filled loan application form with three photographs (passport size)
- Any Identity Proof: Pan card or Aadhar card or Driving licenseor Voter ID
- Any proof of residence: a Latest copy of Telephone bill or Electricity bill or Water bill or Gas bill or Driving license or copy of passport or Voter ID
Property papers
-
- Permission for construction
- Registered sales agreement (for applicants from Maharashtra ) or Allotment letter or Stamped sales agreement.
- In case of readymade property Occupancy certificate is required.
- Share certificate (for applicants from Maharashtra ) or Maintenance bill or Electricity bill or or property tax bill.
- Xerox copy of the approved plan registered agreement of development from the builder or Conveyance deed ( In the case of new property).
- Bank account statements or payment receipts showing payments made to builder or the seller of the property.
Account statement
-
- Last six months bank details of overseas account summarizing salary and saving account if any in India.
- Past 1 year loan account statement if any loan taken in the past.
Income proof of Salaried Applicant or Co-applicant and Guarantor
-
- Employment contract-an English translation duly attested by employer or consulate or our foreign office or embassy in case it is in a foreign language.
- Should have a valid work permit.
- Salary certificate of last 3 months
- Salary credit statement in the bank account of the last six months.
- Identity card and latest salary certificate issued by the current employer.
- Duly acknowledged copy of tax returns except for applicants working in the Gulf countries and also who are working in merchant navy.
Income proof of Salaried Applicant or Co-applicant and Guarantor
-
- Address proof of the business
- Proof of income in case of self-employed and businessman
- Last two years audited or CA certified balance sheet and P&L statements
How to Apply for SBI Home Loan
A home loan is the best thing that you can get if you want to buy or build a home for yourself and your family,but you do not have the necessary money.
Many people think the process of receiving money from a home loan is very difficult,and they may not get it very soon.
Home loans from State Bank of India are one of the best home loans available in the market.
It is one of the simplest, easiest and the most convenient home loan.
Check your Eligibility
To check whether you are eligible or not for the bank loan, consider the requirements given by bank before applying for the loan
- Your age
- Your income
- Your credit history
- Your FOIR
- Your dependants
- Nature of your work
- Country where you are working
Apply for the Loan
Next step is to apply for the loan, apply to visit any nearest State Bank of India and take the application form and fill it.
The application form can also be downloaded from the official website of state Bank of India, download the form, fill it and submit it in the bank with all the required documents.
Submit the Form
Please carry the following documents along with you when visiting the bank to submit the form:
- Property registration documents
- Six months’ bank statement
- Identity proof
- Residence proof
- Income tax returns for the last three years
Proceed in the bank with all the documents in original and also do not forget to take their xerox copies. State Bank of India has one of the best customer services support staff,and they will assist you with the required formalities.
Checklist of Documents for SBI Home Loan
Finally, you are ready to submit the application form so that your loan application is forwarded and is taken in due consideration for the required amount of loan.
Do not forget to take any of the documents listed below as this is the last step and you do want to be rejected for the loan.
The staff will surely assist you with everything,but still, it is your responsibility to do your work of carrying all the required documents in original and also in xerox
Here is a list of documents that are needed for everyone.
- Address Proof
- Light bill
- Telephone bill
- Gas connection bill
- Aadhar card
- Voter id card
- Driving license
- Passport
- Identity Proof
- Pan card
- Aadhar card
- Voter id card
- Driving license
- Passport
- Appointment letter at the place of appointment
- Financial documents
- Form 16 of the last two years
- Salary slip of the last 3 months
- Last six months bank statement
These were some of the common documents required for the home loan, now here are some of the loan-specific documents that are needed while applying for the home loan in State Bank of India.
| Processing cheque required in advance | To validate the bank details, a cancelled cheque is required by State Bank of India |
|---|---|
| Loan application form completely filled | Enclosed with three photographs (passport size) |
| Income proof | Form 16, salary slip and bank statement of last one year |
| Investment proof | LIC, Mutual funds, any other investment documents |
| Job continuity proof | A letter from the HR department of the company where you are working,stating your job continuity. |
| Identity proof | Aadhar card and pan card |
| Relevant property documents | Enclosed with sales deed and transfer of ownership |
| Proof of address | Aadhar card, driving license, voter id card, electricity bill, telephone bill, gas connection bill, rent agreement, sales deed |
| Financial documents for self-employed applicants | CA approved income tax return of the last two years |
| Financial documents for self-employed non-professionals | CA approved income tax returns for the last two years. |
The list of documents and all other details are finished, but there are still other documents required for the self-employed applicants.
- Business existence proof
Company registration license, shop license,
- Income proof
Income tax returns of the last two years, profit and loss accounts, income computation, audit report, and company balance sheets.
- Office address proof
Property documents and light bill
- Office ownership proof
Property documents, maintenance bill, utility bill, light bill
- Residence address proof
Registered rent agreement, utility bill, license, with single enclosed with photographs.
This concludes the list of documents required to apply for the loan at State Bank of India. State Bank of India is one of the largest lenders of the country and also ranks high in the world.
If everything is okay from your end,including your documents property paper, photographs, and everything, then you do not have to worry for anything. State Bank of India has the name of one of the highest customer service oriented bank in India and this name it has earned only due to the best customer service it has given to innumerable customers.
State Bank of India is also known as the banker to every Indian, as very famously in one of their advertisements, they mentioned that many of our freedom fighters had the bank account in this bank, so give all the documents and you can also have the benefit of having a home of your own, by getting the loan form State Bank of India.