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State Bank of India (SBI), the world’s largest bank, has many home loan schemes tailored to the needs of customers including SBI Maxgain, SBI Realty, SBI Home Plus & NRI Home Loans. Some of the advantages of an SBI housing loan are low interest rates with interest on daily reducing balance, low processing fees, no hidden cost & no administrative charges, plus zero prepayment penalties. View more details about SBI home loan below.
At least 18 years old
Less than 70 years old
Salaried / Self-employed
with regular income
Earn more than the minimum
EMI limited to about 50%
of monthly income
Loan capped @ 75% to 80%
of property value
EMIs of other loans lower
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 30 years
Alternatively add your parents
|Interest Rate (Floating)|| For women - 9.85%
For others - 9.90%
|Processing Fees||0.25% of Loan amount (Minimum Rs. 1000, Maximum Rs. 10,000)|
|Loan Tenure||30 years|
State Bank of India (SBI) is a government owned banking and financial service organization. The bank is headquartered in Mumbai and is the largest banking institution of India in terms of assets. The bank has a massive presence in the country with over 17,000 branches spread across the nation’s length and breadth. Not only this, the bank has a huge international presence too with branches in over 34 countries of the world. SBI caters to a large base of individual and corporate clients and has operations in the fields of personal banking, investment banking, corporate banking, asset management and so on.
State Bank of India provides a range of home loan products to suit the individual needs and preferences of its customers. Various surveys and consumer awards have conferred the title of ‘The most preferred Home Loan Provider’, to SBI. Low interest rates, flexible payment options and zero hidden charges are some of the features that lend to the popularity of SBI home loans.
With thousands of branches spread across various geographical locations has made SBI one of the most accessible banks to obtain a loan from.
Applying for a home loan can sometimes become a great hassle if you do not have all the information required to choose the correct option. Since SBI offers a host of home loan schemes, opting for the best-suited and most applicable scheme can become a massive task. BankBazaar provides you with all the right information required to obtain a loan. Not only this, BankBazaar also helps you in asking the right questions, calculating your EMIs (through online calculators) and in comparing the rates of different home loan schemes.
New Lowest Interest Rate: The State Bank of India has reaffirmed its commitment to assist in the progress of India’s women folk, offering a newly launched home loan scheme at an interest rate of just 9.85% per annum that applies exclusively for women. The remaining borrowers can procure similar SBI home loans at an interest rate of 9.90% per annum (for others), a number that qualifies home loans from SBI as a very competitive loan option.
SBI offers a wide range of home loan products to its customers. You can choose the best home loan scheme that suits your budget and requirement. SBI home loans come with exclusive packages and benefits to cater to the home finance needs of all its customers. Following are some of the home loan options available from SBI.
The SBI MaxGain home loan aims to enable its customers to reduce their interest burden at no extra cost. This home loan acts as an overdraft account too, giving the customer privilege to withdraw and deposit amounts depending upon their cash availability. Bank provides internet banking and cheque book facility with this home loan. Excess funds when parked with this account impact the overall principal and the associated interest. Also, a customer can choose to withdraw amount from the linked account in case of excess parked funds.
This SBI home loan is tailored especially for individuals who are young and generally taking loan for their first home. The age eligibility is between 21-45 years. This loan grants an amount which is 20% over and above the regular loan amount. This home loan is ideal for fresh professionals and government employees. Under this scheme the home loan full repayment starts only after 36 month from the date of availing the loan. For the first 36 months only interest needs to be repaid.
As the name itself suggests, the NRI loan is tailored for Non-Resident Indians (NRIs) and for People of Indian Origin (PIOs). This loan is given to an individual who earns a regular income and whose minimum employment period (in India or abroad) is not be less than 2 years.
This SBI loan is for people who want to buy land or plot. The construction should commence within 2 years from the sanction date of the loan. This type of loan comes with the flexibility of availing another loan for construction purposes on the land bought. So a customer is entitled to avail two simultaneous loans on the SBI realty home loan.
This is a Pre-Approved Home Loan from State Bank of India. This loan does not depend upon the property to be bought. SBI grants its customers the freedom to avail the loan amount before deciding upon the property. This gives customers the needed confidence to negotiate boldly with builders/sellers regarding the price of the property.
This is a home loan scheme designed especially for women applicants. A woman needs to be the sole applicant or the primary applicant for this type of home loan. Also, the property for which home loan is being taken should be in the name of the woman applicant or she should be the primary owner in case it of joint ownership. This home loan scheme by SBI aims at enabling women to own property and carries a social obligation in line with the empowerment of women.
Apart from the above listed regular home loan schemes by State Bank of India, there are several other options also which aim to uplift people from tribal and village areas of the nation. These schemes are in line with the organization’s commitment towards comprehensive nation building.
Here are a few such housing schemes offered by SBI-
This housing loan from SBI is meant for customers who are from tribal areas or hilly regions where mortgage of property is not available. The loan is provided for construction of a new house or flat and for purchase of a new house. Under this scheme SBI also provides an option of taking loan for the purpose of renovation or repair.
The Gram Niwas scheme from State Bank of India is aimed at providing housing finance to the customers from rural regions of the nation. This housing plan covers people from rural or semi-urban regions which have a population of less than 50,000 as per the 2001 census. Under this scheme, home loans can be availed for buying of land or house, renovation and repair of house and construction of house.
Sahyog Niwas scheme aims to provide home loans to self-help groups which have a good credit history. The bank lends to members of these groups under this scheme for purposes of buying of land or house and construction, repair or renovation.
Frequently asked questions about SBI Home Loan.
BankBazaar gives you the option of comparing home loan schemes and an online EMI calculator to help you plan your finances well in advance before availing a home loan.
Interest rates vary with respect to their floating or fixed nature. Generally, foating home loan rates vary between 9.85% to 9.90% and fixed vary from 10.25-40%. This also depends upon the lender bank. SBI offers floating interest rates between 9.85% to 9.90% per annum.
SBI charges a low processing fee for its home loans. 0.25% of the loan amount is charged. The amount can be anywhere between Rs.1,000 to Rs.10,000.
Yes. You can pay off your SBI home loan earlier too, without a pre-payment penalty fee.
Usually, the property that is purchased using the loan serves as the security. In some cases it is at bank’s discretion to ask for additional securities like insurance policies, fixed deposits etc.
Yes. A guarantor with all the valid and required documents need to sign your loan application.
You can either be a salaried employee or self-employed for obtaining this loan. However, the only condition is that you should be earning a regular income and should be able to furnish proofs of the same.
Yes. Joint applicants are welcome at SBI.
Yes. Tax rebate under section 80C of the Income Tax Act is applicable.
Long-term loans are beneficial in giving you the option and comfort of lower EMIs, however, short-term loans mean higher EMIs but lesser interest. A borrower can choose the option depending upon his financial status.
If all the required documents are in place then your SBI home loan can be sanctioned in a few days.
With a network of over 17000 branches in India, SBI home loans can be applied at any of your nearest bank branch.
State Bank of India is throwing all its weight behind improving customer experience in the home loan segment. The largest bank in India is contemplating on cutting down home loan disbursal time frame from 17 days to 10 days in the next 6 months in a phased manner. The turnaround time for disbursal was about 31 days last year.
In order to fulfil the cut in disbursal time, SBI has streamlined key processes like pre approving housing projects which will directly impact the disbursal time frame. It will also be unifying sales and marketing teams under a single roof to ensure better coordination.
During FY-2015, the bank had disbursed housing loans worth Rs.50,000 crore. In the current fiscal, SBI is looking at a growth of 10-15 percent in this segment.
4th May 2015
The recently ended fiscal year seems to have been a good one for the State Bank of India, especially for its Bengal circle. According to reports, SBI’s Bengal circle recorded a whopping 50% rise in home loan disbursement in the fiscal year 2014-2015 and touched a figure of Rs 2,100 crore. Not only that, SBI also successfully brought down its loan processing time from 31 days to only 17 days. For the ongoing fiscal year, the bank is aiming for similar growth and targeting to take the home loan disbursal figure up to Rs 3,000 crore and further reduce the processing time for home loans to a mere 10 days! Reflecting on this update, CREDAI, the apex body of realtors, has predicted a 10% to 12% increase in the housing sector in Bengal due to a rise in input cost.
21st April 2015
India’s largest public sector bank, State Bank of India has made a drastic cut in home loan interest rates by 25 basis points, offering one of the lowest rates in the affordable housing segment. Specific to women, SBI has launched a home loan scheme with an interest rate of 9.85%. Other borrowers can get SBI home loans at an interest rate of 9.90% per annum. Effective on SBI home loans sanctioned on or after April 13, this move comes after the RBI Governor pushed Indian banks to take advantage of the two repo rate cuts done earlier this year.
The "Her GHAR" scheme targeted towards women borrowers requires them to be the sole applicant or the first of the co-applicants and also the sole owner or the first co-owner of the property financed. For example, after applying the new interest rates the revised EMI for a loan tenure of 30 years will be Rs 867 per lakh for women and Rs 871 per lakh for other borrowers.
16th April 2015
State Bank of India, India’s biggest lender by assets, has offered a jackpot to its existing home-loan customers. SBI’s home loan borrowers can now avail a personal loan or a top-up loan at the same interest rate as home loan. This limited period offer from the nation’s top home loan lender will be a benison for all the existing SBI home loan borrowers.
As an added advantage, an existing home loan customer can clinch a personal loan at an interest rate of just 10.15%. For women, personal loans will be even affordable at 10.10% interest rate. The only condition to secure this special offer is that the customer must have been paying all his home loan EMIs on time.
Don’t have a SBI home loan? No worries – With BankBazaar.com, you can check out other awesome home loans deals and also use the EMI calculator to see what fits your budget.
17th March 2015
State Bank of India (SBI), country’s largest lender when it comes to home loans, wants the upper limit for tax subsidy to be increased from Rs.15 lakhs to Rs.25 lakhs. SBI has also suggested higher tax benefits for home loans in order to target “Housing for All” by 2022.
In its wish list for the budget, SBI also wants statutory deduction for stamp duty and registration charges while computing income tax. For recovery of principal component of home loan, SBI has also suggested that the government provide additional deduction of Rs.50,000 above the current limit of Rs.1.5 lakhs. SBI wants the cost of the house to be increased from Rs.25 lakhs to Rs.30 lakhs to be eligible for subvention in the metros. SBI also stressed on the fact that the government should seriously consider bringing housing loan for first-time applicants under overall priority sector ambit. It is worth noting that SBI’s loan book has showed a growth of 13% year-on-year.
2nd March 2015
State Bank of India has become the largest player in retail banking with current sanctions of over 800 home loans every day with average sanctions of Rs.150 crores daily.
The total Home loan outstanding grew by about 4403 crores from the first quarter of financial year 2014-2015 to the third penultimate quarter. The racy pick-up in home loan product has also come as a result of 1405 residential projects where SBI has obtained single title clearance.
Second in the race of home loan sanctions is, the private player HDFC with loans amounting to Rs.145300 crore in the last quarter. This is closely followed by LIC Housing Finance with Rs.95310 crore as home loan outstanding as against Rs.79255 crores for ICICI, the fourth largest player in the home finance segment.
The competition is tough and cut-throat because of similar rates offered by all the top banks. The rate offered by these banks is 10.15% for general and 10.10% for women. Sensing the close competition, SBI has deployed more workforce to popularize its home loans.
As per a study, mortgage penetration in the country is still a meagre 9% of the national GDP as compared to a high 81% and 69% in the UK and the US. This leaves a huge untapped demand that can be leveraged by SBI with its wide network of branches.
5th February 2015
India’s largest public sector bank, the State Bank of India (SBI), is in talks with ex-employees who recently retired from the bank to draw on their expertise to monitor loan accounts and train existing employees. These ex-employees will be recruited on a contract-basis for short periods of time.
The expected outcome of this move is to improve the quality of credit, reduce deviations and positively influence skills of existing/new employees.
This move comes in the wake of increased emphasis on compliance and quality asset creation as well as tougher competition from peers in the private sector.
As a result of these initiatives, the bank hopes to see a positive impact on its loan business. SBI hopes to improve home loan sales by channeling its products across all its network branches, even beyond its banking vertical.
To this effect, SBI will source home loan customers through its other verticals as well such as insurance and mutual funds.
8th January 2015
The State Bank of India’s recent move to waive processing fees as part of its festive offer has proved beneficial. The country’s largest lender saw a rise in home loan numbers and is expecting a further increase. It hopes to achieve disbursals in the range of Rs.200 crores per day.
While this may be an optimistic number, it may soon become a reality considering that this PSU bank’s current home loan disbursals are at Rs.188 crores per day. This represents a 14% year-on-year growth.
A majority of business is coming in from loan categories below Rs.50 lakhs.This has underscored the need for the bank to focus on higher value loans which will increase profitability, particularly the over Rs.75 lakh category.
This increase in retail loan disbursals spells good news for credit growth numbers for the bank given the lows the banking sector has been facing in recent times. Banks have been trying to boost sales on retail loans in a bid to shadow the poor credit uptake from the corporate segment. Home and auto loans make up a large part of most banks’ retail lending portfolio.
27th October 2014