How to Use SBI Housing Loan EMI & Eligibility Calculator?

Before we delve into SBI housing loan calculator, you must first know what SBI housing loan is and why it is so popular. SBI is one of the largest banking institutions operating in India. It is the premier government-owned bank and listed under the Fortune Global 500. SBI offers a myriad of loan facilities to its customers and stands as the most popular in the category of home loan providers. Most borrowers prefer SBI over any other banking unit that operates within the country.  The reasons listed are as follows:

  –  It is considered to be one of the most trustworthy banks by borrowers as it is a PSU bank. This trust is, perhaps, a by-product of its wide reach across the country. Being a government-owned bank, SBI has a wide network of branches operating across the farthest corners of the country. Hence, it is popular and synonymous with the word “banking” for most people.

  –  SBI home loan interest rate is by far the lowest as compared to other banks, which can be attributed to its economies of scale. SBI is one of the largest home loan providers. It is also the market leader in providing home loans.

 –  Most SBI staff members have a good personal relationship with their customers. This is true for most regions barring the metropolitan cities.

 –  SBI has one of the best-known home loan products known as the MaxGain home loan. MaxGain helps in saving interest outflow. A borrower can utilize the housing loan calculator to identify the interest rates of different types of home loans.

Eligibility Criteria for SBI Home Loans

The most frequently asked question by a borrower is – “What is the eligibility for the home loan of SBI?” The SBI housing loan calculator online lets the borrower check for his/her eligibility based on few parameters like age, income, the current value of the property, work experience, and maximum EMI as a percent of income.  The criteria for SBI home have been kept bare-minimal as compared to the other financial banks. They are as follows.

  1. Income:  The annual income of the person is taken into consideration when citing for the eligible candidates. A person with an annual income of a salaried person should be about 1.2 lakh per annum. However, for a non-salaried person, the annual income should be more than 2 lakh per annum. A loan eligibility calculator SBI will determine how much home loan EMI a borrower can pay after meeting the living expenses based on the standard of living. For instance, a salaried person with a monthly income of 25,000 can avail a loan with an upper limit of INR 40 lakh.

  2. Age: For a salaried class person, the age should be between 18 and 70 years and for a non-salaried class person the age should be 21 to 70 years.

  3. Value of Property: There is a certain cap to the maximum amount of loan that is financed by the bank. The maximum home loan eligibility depends on the Loan to Value ratio (LTV).  For instance, a property that is valued at less than 30 lakh has LTV of 90 %. At this LTV ratio, a loan amount that is less than INR 20 Lakhs is permissible.

  4. A Borrower’s CIBIL Score: This is very important in defining the eligibility. It measures the borrower’s past credit performance, credit card reports, and past loans. SBI mandates a minimum score of 650 to be eligible for a home loan.

SBI Bank Home Loan Interest Rate

The interest rate is the rates at which interest is charged on the borrower’s principal loan amount. The interest rate differs depending upon the loan taken and the financial establishment. The rate of interest affects the EMI; hence, it is critical to compare the interest rates offered across different banks using SBI home loan interest rate calculator. The interest rates for SBI Home loans are anywhere from 8.30% to 8.60% for women and from 8.35% to 8.65% for males.  

SBI Housing Loan EMI Calculator

SBI Home loan EMI calculator is a tool that lets the borrower calculate the EMI, monthly interest and monthly reducing the balance. It is fairly simple to use. First, you can start by picking the correct home loan amount or alternatively enter the details manually by selecting the loan period, the interest rate applicable and the processing fee rate to arrive at the actual EMI, which you will be paying. You will be asked to customize your selection by selecting whether you want to opt for prepaying the loan or not.  Once you have selected the details, all you have to do is click on ‘calculate’ and you will receive the home loan EMI amount in seconds. This way, the SBI Loan EMI calculator makes it easier to arrive at a decision.

Loan Documentation Needed

The documents that a borrower is required to produce in order to avail a home loan are as follows:

  •    A duly filled application form
  •    Passport sized photographs
  •    Any photo identity proof (Driving License/Pan Card/ ID Card)
  •    Residence proof
  •    Proof of ownership of property
  •    Bank transaction record of the last 6 months
  •    Declaration of personal assets and liabilities

Read Also: Features and Benefits of SBI Personal Loan Interest Calculator

Pradhan Mantri Awas Yojana by SBI Bank

The Government of India provisions the affordability of ‘housing for all’ by 2022. This initiative is being offered to a lower-middle-class section of people in India where they are being offered a very low rate of interest for housing loans. To be a beneficiary, the loan amount should be less than 30 lakhs. At SBI, the reduction in the rate of interest is approximately 20 % of the basis points for men, while women can avail a reduction of nearly 25 basis points.

Author Since: Jan 17, 2019

Anoop Bansal, a professional Chartered Accountant based in the National Capital - Delhi. I have worked for the top-notch Indian and International banking firms for the past 10 years. Currently, I work at emi-calculator.loan blog and a financial consultant for different SMEs in India. Follow me on Facebook, Twitter and Linkedin for more information.

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