A home loan is a key to happiness for many who dream of a home of their own but are not likely to have enough savings to purchase a house outright. A home loan gives them a means of funding the house with whatever savings they have managed at the point with the option of repaying the amount over a period of time in the form of Equated Monthly Installments (EMI). SBI has various schemes on offer. You can evaluate each of them using the SBI home loan calculator and choose the right one for yourself. This is important as it involves a higher amount taken for a fairly long period and it should not affect your finances negatively.
SBI Home Loan – Interest Rates
Table of Contents
- 1 SBI Home Loan – Interest Rates
- 2 SBI Home Loan – Eligibility
- 3 SBI Home Loan – Documents Required
- 4 SBI Home Loan – Loan Terms
- 5 SBI Home Loan – Down Payment vs. Loan Amount
- 6 SBI Home Loan – EMI and Comparison of EMIs
- 7 SBI Home Loan – Other Charges
- 8 SBI Home Loan – Benefits
- 9 SBI Home Loan – Saving Instruments
The interest rate for SBI plans vary based on the loan amount expected. The interest rate is also a little lower for female applicants. The rate ranges between 8.35% and 8.65% and are one of the best home loan interest rates in the market. The rates depend upon criteria such as our working status, your income and the type of loan selected. You can estimate the interest rate applicable to you with SBI home loan interest rate calculator. You can rely on SBI to automatically adjust the benefits (if any) that you can get on interest rates for the future.
SBI Home Loan – Eligibility
You are eligible for a home loan if you belong to the age group of 18-70 years. You could be self-employed or salaried. The criteria require you to have a minimum salary or minimum income of INR 25,000 for the salaried individuals and the self-employed respectively. There are criteria that should be matched for your financial stability. The property value is the final deciding factor along with an assessment of your capability to clear the loan in time.
SBI Home Loan – Documents Required
You need to produce documents to confirm your eligibility for the loan. You will need to produce proof of your identity, proof of your address, proof of income and that of your financial stability over the last few years. These include your bank statements showing salary credit details of the last 6 months and income tax returns for the last 2 years.
SBI Home Loan – Loan Terms
The property purchased is mortgaged as security for the loan. You can get up to 90% of the property value as loan, which has to be paid in a minimum of 5 years and a maximum of 30 years. If you calculate the EMI for the lowest interest and maximum tenure, the lowest EMI payable is INR 769 per lakh.
SBI Home Loan – Down Payment vs. Loan Amount
If you want to buy a house, you have probably been saving for this for some years, or you could have come into some inheritance that you wish to invest. You also have your provident fund, 90% of which can be utilized for a home loan down payment. Once you choose your house and know the property value, you will need to have a minimum of 10% of that to make a down payment. The rest of the money can be arranged through a loan depending on your eligibility, which you can calculate using the loan eligibility calculator SBI has provided for you. But remember, the higher the down payment, the smaller is the loan. A smaller loan means higher chances of approval, lesser stress and quicker clearance of the loan.
SBI Home Loan – EMI and Comparison of EMIs
The loan is repaid in EMIs, which have a principal component and an interest component that is calculated based on the outstanding balance at the beginning of the month. This EMI value depends on the amount borrowed by you, the interest rate and the tenure of payment. A longer tenure facilitates smaller EMIs, but you would end up paying a much higher amount as interest. You can calculate the total interest applicable using the housing loan interest calculator. You can compare the EMIs of different banks for different amounts and compare them to choose the best loan option.
SBI has the best interest rates and hence the smallest EMIs in comparison to other banks.
SBI Home Loan – Other Charges
At the time of application, you would need to pay a processing fee. If you default on EMI payments, you can be penalized. The other charges involved are the foreclosure charges. This money needs to be paid at the time of making the full payment of the outstanding loan amount. You will also be charged for the legal formalities that need to be carried out.
SBI Home Loan – Benefits
As you calculate the various parameters using the SBI housing loan calculator, you have to consider the benefits offered. As mentioned earlier, the interest rates offered by SBI are the best. You can avail an even lower rate if the primary applicant is a female. Another big benefit is that of the tax deductions that you can avail on the interest paid for the housing loan of up to INR 2 lakhs if you occupy the house and the entire interest if the property has been rented out. You can also claim deductions under section 80 C.
SBI Home Loan – Saving Instruments
When you start saving up, you may not be aware of the many ways in which you can save money with the banks. SBI its, f has many tools to offer such as savings accounts, recurring deposits and SIPs, which give you excellent returns on your investment.
SBI has various slabs for the loan amounts and the interest varies for each. If you can get loan approval from SBI, you can rest assured that you are getting the best deal.