SBI home loans interest rates
Home Loans: Home is always a dream for every person. To buy/construct a own house is indispensable part of any persons goal plan. More than 50% of people in India live in their own houses while 30% live on rent and 13% in their parents/inherited house says an survey.
- Home gives any person to satisfy one of his basic needs, ie Shelter
- It also enhances the status quo of an individual
- Helps Reduce the Tax Liability of an individual
- Satisfies need of stay and creates an attachment towards an asset
- Any Government also aims to provide housing to all its citizens
While some may have built a corpus to build/purchase a home, mostly people wish to go for a housing loan with financial institutions/banks to apply for a housing loan since it will also cater their need for Tax Liability.
Income Tax provides certain exemptions to both the principle and interest paid towards the housing loans. So its always advisable to go for a housing loan rather than outright cash purchase/constructions except for people who can afford for it.
With so many good things about housing loan, the largest lender in the country State Bank of India offers attractive interest rates across segments of people.
- SBI is one of the first lenders in the country who are offering interest linked to External Bench Mark (EBLR). EBLR offers lowest interest rate scenario, since its being linked to an external bench mark ie Repo Rate of Reserve Bank of India, which means the change in interest rates more likely to reduce in an interest rate reducing scenario.
- The Process of applying for a housing loan is simple and borrower can also apply through its Mobile App, Yono.
- While the processing and underwriting process are handled by experts in the industry who have been handling the same for decades together, borrower need not worry much on that part
- With Rates Linked to EBLR, rates are subject to change every quarter and borrowers must be aware of the change and corresponding impact on the principle and interest on the EMIs they pay
Basic Understandings
- Borrowers are classified as Salaried and Non- Salaried
- The interest rates vary with the amount of Loan Required.
- Interest Rates are further divided into Floating and Fixed rates.
- Only Floating rates are linked to EBLR/EBR
- LTV otherwise known as Loan to Value differs for each loan
- BPS refers to the Basis points which are added or subtracted from benchmark rates depending on the loan
- Risk Grade (RG) defines the credibility of the client basis his credit score and other loan repayment tracks
- SBI also offers differential pricing for women borrowers with reduction in interest rates
- Top-Up on home loans can be availed and Loan against the existing Property can also be taken
For further understanding, please approach your nearest bank branches of SBI
Below is the interest rate chart provided by SBI for its borrowers as per given in their official website.
HOME LOANS: FLOATING INTEREST CARD RATES W.E.F.01.07.2020
(A)- HOME LOAN INTEREST CARD RATE STRUCTURE (FLOATING) EBR 6.65%
| LOAN AMOUNT | SALARIED | |
| TERM LOAN | MAXGAIN | |
| Up to Rs 30 Lacs | EBR + 35 bps | EBR + 70 bps |
| ER: 7.00% | ER: 7.35% | |
| (ER: Effective Rate) | ||
| Above Rs 30 Lacs to Rs 75 Lacs | EBR + 60 bps | EBR + 95 bps |
| ER: 7.25% | ER: 7.60% | |
| Above Rs 75 Lacs | EBR + 70 bps | EBR + 105bps |
| ER: 7.35% | ER: 7.70% |
- A premium of 15 bps will be added to the Card Rate for Non-Salaried Customers.
- A premium of 10 bps will be added to the Card Rate for Loan up to Rs 30 Lacs if LTV ratio is >80% & <=90%.
- A premium of 10 bps will be added to the Card Rate for customers falls under RG (4 to 6)
- 05 bps concessions will be available to women.
- Premium of Non Salaried Customers,Risk Grade 04 to 06, Loan up to Rs 30 Lacs if LTV ratio is >80% & <=90% and concession for women customers will be clubbed with Card Rate/ other premium for arriving at Final Rate for the customer.
EBR 6.65%
| Product | Applicable Interest Rate |
| Tribal Plus Scheme | An additional 10 bps will be added to the Final Rate |
| Home loan to Employees of Kerala Government scheme | EBR+35 bps,ER:7.00% |
| CRE Home Loan | An additional 50 bps premium will be added to the Final Rate |
SBI Privilege and Shaurya Schemes EBR 6.65%
| SBI Privilege and Shaurya Schemes | a) Where check-off facility is provided by the Government Department / Defense Establishment under tie-up with our Bank |
| Interest rate applicable to women will be applicable to men/others. | |
| (b) Where check-off facility is not available– | |
| Interest rates as applicable to others category will be applicable after taking into consideration the LTV Ratio, Risk Grade, gender and limit |
SBI REALTY LOANS
For First Five Years EBR 6.65%
| LOAN AMOUNT | APPLICABLE INT RATES |
| Up to Rs 30 Lacs | EBR+105 bps |
| ER: 7.70% | |
| Above Rs 30 Lacs to Rs 75 Lacs | EBR+115ps |
| ER: 7.80% | |
| Above Rs 75 Lac | EBR+125bps |
| ER: 7.90% |
- A premium of 10 bps will be added to the Card Rate for customers falls under Risk Grade 04 to 06.
- 05 bps concession will be available to women
- A premium of 05 bps will be added for the customers who is not having salary account with SBI
(B)- HOME TOP UP CARD INTEREST RATE STRUCTURE (FLOATING) EBR 6.65%
| APPLICABLE INTEREST RATES | ||
| Term Loan | Overdraft | |
| Up to Rs. 20lacs | EBR + 85 bps | N. A. |
| ER: 7.50% | ||
| Above Rs.20 lacs and up to Rs.1 crore | EBR + 105 bps | EBR + 175 bps |
| ER: 7.70% | ER: 8.40% | |
| Above Rs.1 crore and up to Rs.2crores | EBR + 125 bps | EBR + 200 bps |
| ER: 7.90 % | ER: 8.65 % | |
| Above Rs.2 Crores and up to Rs.5 Crores | EBR + 170 bps | |
| ER: 8.35% | ||
| Above Rs.5 crores | EBR + 290 bps | |
| ER: 9.55% |
- A premium of 15 bps will be added to Card Rate for Non-Salaried Customers.
- A premium of 10 bps will be added to the Card Rate for customers falls under Risk Grade 04 to 06.
- Premium of Risk Grade 04 to 06 will be clubbed with other premium for arriving at final Rate for the customers
| INSTA HOME TOP UP LOAN (Rs 01 Lacs to Rs 05 Lacs) | 155 bps above EBR, irrespective of Risk Grades, Gender and occupation.ER:8.20 | |
| SMART HOME TOP UP LOAN | Applicable Interest Rate | |
| SALARIED | NON-SALARIED | |
| TERM LOAN | EBR + 140bps | EBR + 190 bps |
| ER: 8.05% | ER: 8.55% | |
| OVERDRAFT | EBR + 190 bps | EBR + 240 bps |
| ER: 8.55% | ER: 9.05% |