SBI as it is commonly known, or State Bank of India is the country’s largest and oldest bank. It is a multinational, private sector banking and financial services corporation and was ranked 216th among the world’s biggest corporations on the Fortune Global 500 2017 list. This bank reserves 23% of the market share in terms of assets. Additionally, State Bank of India corners one fourth of the loan and deposits market. With its roots going back to the first decade of the 19th century, State Bank of India is arguably one of the oldest banks in India along with being the largest.
Like most banks in the country, SBI is known for a wide range of financial services including home loans. As mentioned before, SBI corners the loans market in the country and many of the loans disbursed at State Bank of India branches around the country are in fact home loans. Read further to know more about SBI’s home loans services, including benefits and advantages, types of home loans offered, interest rates on home loans and so much more.
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Types of SBI Home Loans
One of the reasons SBI captures a large chunk of the home loans pie in India is because this bank offers a wide variation of home loans services to its customers. Making an informed decision on home loans offered by SBI requires an understanding of the home loan products offered by India’s largest bank. Listed below are a variation of home loans types you can avail of at an SBI branch near you.
- Regular Home Loan – SBI’s regular home loan can be availed of to build a house, to finance home extensions, to purchase a property that is under construction, to purchase a constructed property, to buy a pre-owned home or to finance renovations and repairs of one’s home.
- NRI Home Loan – The NRI Home Loan is specifically for Non-Residing Indians making an investment in real estate in the country.
- Realty Home Loan – This loan finances purchase of plots for home constructions with the stipulation that construction on said property should commence within 5 years of availing of the loan.
- Pre-Approved Home Loan – wherein a loan amount is sanctioned prior to arriving at a specific home purchase decision.
- Balance Transfer Home Loan – This service allows borrowers to transfer loan balance from other banks and housing finance companies to SBI in lieu of lesser interest rates.
- Privilege Home Loan – This variation of the SBI home loan is offered to government employees with pensionable income.
- Shaurya Home Loan – A special variation of SBI home loans for the benefit of individuals serving in the Indian armed forces.
- Flexipay Home Loan – A home loan variation with payment flexibility allowing borrowers to pay only interest incurred during the pre-EMI period followed by the payment of moderated equated monthly installments.
- Home Top Up Loan – A top up feature that allows borrowers to apply for funds over and above the home loan amount borrowed.
- Smart Home Top Up Loan – A general purpose home loan top-up loan wherein funds can be utilized for a wide range of personal requirements.
- Tribal Plus – SBI home loans for the construction and purchase of property by those that live in hilly areas, extended to those of tribal status in particular.
- CRE- Commercial Real Estate Home Loan – A special home loan for those owning two or more properties and in need of funds to finance an additional home purchase.
- Insta Home Top Up Loan – availed of through net banking by pre-selected existing SBI home loan borrowers.
- Bridge Home Loan – loans to finance home upgradation by selling one residential property to move into the next.
- Corporate Home Loan – loans to finance construction and purchase of residential units under the proprietorship of companies.
- Home Loan to Non-Salaried-Differential Offerings – SBI loans for non-salaried persons hoping to purchase, construct or repair and renovate a home.
- Pradhan Mantri Awas Yojana – A Government of India initiative that facilitates home ownership among the urban poor.
- Home Loan Overdraft Facility – pertains to the SBI MaxGain home loan which is approved as an overdraft, wherein the home is recognized as security by the bank.
It must be noted that SBI offers other home loan schemes as well. Consult your nearest SBI home loan advisor for home loan products that are not detailed here.
Benefits and Advantages of SBI Home Loan
Any home loan product variation from State Bank of India comes with its own benefits and advantages. The infographic below comes with current information of benefits and advantages of various home loan types offered by SBI.
|Loan Type||Benefits and Advantages|
|Regular Home Loan||No Prepayment Charges, Interest Rates charged on reducing loan amounts with every EMI payment.|
|NRI Home Loan||Processing fees are low and there are no hidden charges.|
|Pre- Approved Home Loan||Up to 30 years repayment tenure, reduced interest rates for women borrowers|
|Realty Home Loan||Allows for building of home from scratch, maximum 15 Crores loan amount|
|Balance Transfer Home Loan||Allows borrowers to opt for lower interest rates on existing loans, loan availed as overdraft|
|Privilege Home Loan||Interest concessions, especially for government employees|
|Shaurya Home Loan||Competitive interest rates, loan tenure of up to 30 years, beneficial for army personnel|
|Flexipay Home Loan||Pre-EMI period for paying interest incurred on loan amount, loan eligibility increased by 20%|
|Home Top Up Loan||Funds can be used for any purpose, lower interest rates as compared to personal loans|
|Smart Home Top Up Loan||No prepayment charges, speedy loan processing|
|Tribal Plus||Land mortgage not required; third party guarantor accepted by bank|
|CRE- Commercial Real Estate Home Loan||Real estate investment centric loans, loans sanctioned for up to 5 homes|
|Insta Home Top Up Loan||Instantaneous and hassle-free, no paper works required|
|Bridge Home Loan||Convenient short-term loan, best for home renovations, up to 2 Crores lending amount|
|Corporate Home Loan||Processing fees are low and there are no hidden charges.|
|Home Loan to Non-Salaried-Differential Offerings||Best home loan for non-salaried individuals, loan tenure of up to 30 years.|
|Pradhan Mantri Awas Yojana||Subsidy of 2.76 lakhs on home loan interest incurred by borrower, convenient home loan borrowing option for poor and middle-income groups|
|Home Loan Overdraft Facility||Surplus amount remaining in overdraft account can be utilized at any point|
SBI Home Loan Interest Rates in March 2019
Awareness of interest rates charged on SBI home loans is key before applying for such a loan. Additionally, one should be aware of other charges or the lack thereof. The infographic below provides current and updated information pertaining to SBI home loan interest rates and other charges.
|Interest Rate||8.75% onwards|
|Processing Fee||0.35% of Loan Amount|
|Other Charges||18% GST on Processing Fee|
|Prepayment or Foreclosure Charges||Free|
Application Process for SBI Home Loan
Before applying for an SBI home loan, do a careful study of the various types of home loans. Bearing in mind that eligibility factors differ for different kinds of home loans from SBI, consult with an SBI home loan advisor to see which scheme you fit into best. This will ensure that you get the home loan amount you require and qualify for. Additionally, this also ensures you pay the least possible interest rates on your SBI home loan.
Eligibility Factors for SBI Home Loan
While eligibility factors differ for varying SBI home loan types, eligibility criteria for regular home loans from SBI are as listed below.
- These loans are available for both salaried and non-salaried borrowers
- The borrowers age must be within 18 to 70 years
- Salaried individuals should have a work experience at the same firm or company of a minimum of 2 years.
- There is a minimum income requirement for applicants of SBI home loans
- Additionally, whether the applicant is a salaried individual or self-employed, a regular source of income is a strict eligibility criteria for SBI home loans.
SBI Home Loan Documentation Required
With almost all variations of SBI home loans, documentation required is the same.
- ID Proof (Government Issued Employee ID, Voters Card, PAN Card)
- Address Proof
- Employment Proof
- Salary Slips
- IT Return Files
- Income Proof
Additional documentation may be required if you are applying for home loans under special schemes from SBI.
In conclusion, all of the information above is intended to serve prospective home loan applicants at SBI. The information in this handy guide for SBI home loans is current and updated. Additional questions on the subject of SBI home loans can be directed to any SBI home loan advisor at an SBI branch near you.