State Bank of India (SBI) is India’s largest public sector bank and is one of the premier lenders in the country. SBI is known for providing people with the finance they require at some of the most competitive interest rates in the market. SBI is well-known for their home loan products, as they are simple to apply for, given at some of the best interest rates in the market and are processed quickly. SBI has some basic eligibility criteria that all applicants for home loans need to fulfill, we have discussed these criteria objectively in the following paragraphs.
|Age||18 years to 70 years||18 years to 70 years|
|Minimum Monthly Income||Rs.25,000.00||Rs.25,000.00|
|Maximum Loan Amount||Rs.10 crore||Rs.10 crore|
|Maximum Loan TurnOver ratio||90.00%||90.00%|
|Minimum Work Experience||2 Years||5 Years|
|Rate of Interest (1 year MCLR)||8.20%||8.20%|
|EMI Per Lakh||Rs.748.00||Rs.748.00|
Age is a crucial factor taken into consideration while determining a candidate’s eligibility for a home loan. The lower the applicant’s age, the longer will be the repayment period, hence, allowing the applicant to be eligible for a higher loan amount.SBI Home Loans require the applicant to be a minimum of 18 years at the time of commencement of the loan. SBI offers home loans for a maximum tenure of 30 years, subject to the condition that the borrower will not attain the age of 70 years before the end of the loan tenure. The maximum loan tenures for various age groups have been listed below.
|Current Age||Max Tenure (Salaried)||Max Tenure (Self-Employed)|
|25 Years||30 years||30 years|
|30 Years||30 years||30 years|
|35 Years||30 years||30 years|
|40 Years||30 years||30 years|
|45 Years||25 years||25 years|
|50 Years||20 years||20 years|
The candidate’s net monthly income (Income after deductions, such as, Provident Fund (PF), Employment State Insurance (ESI), etc.) gives the bank an idea of the candidate’s loan servicing capacity. Based on the borrower’s standard of living the bank will determine the EMI amount the borrower will be able to service after meeting his/her living expenses. The maximum loan amount on a property worth Rs.50 lakh for borrowers with net monthly incomes of Rs.50,000, Rs.75,000 and Rs.1,00,000 have been listed in the table below. SBI Home Loans are subject to interest @ 8.2% per annum.
|Age||Net Monthly income Rs.50,000.00||Net Monthly income Rs.75,000.00||Net Monthly income Rs.1,00,000.00|
|Loan Amount||Loan Amount||Loan Amount|
A candidate may opt to pay larger EMIs and have a shorter tenure for the loan to improve their eligibility.
SBI verifies whether candidates are self-employed or salaried during their screening process. It requires the applicant to have a minimum of two years work experience with a steady source of income for salaried individuals and requires a minimum of 5 years of experience in their respective fields for self-employed individuals.
SBI finances up to 90% of the value of the property. The table below lists the various Loan to Value (LTV) ratios for various loan amounts.
|Value of property||LTV|
|Below Rs.30 lakhs||90.00%|
|Between Rs.30 lakhs and Rs.75 lakhs||80.00%|
|Above Rs.75 lakhs||75.00%|
The SBI checks a candidate’s credit history, including their repayment record. A good CIBIL record will allow the candidate more options while selecting the duration and loan amount.
To increase eligibility, a candidate may apply for a loan with a co-borrower as it will increase the candidate’s repayment capacity. The co-borrower should have a stable source of income, low monetary obligations, and a good CIBIL record.
|Top SBI Related Pages|
|SBI Home Loan||SBI MCLR Base Rate||SBI Home Loan EMI Calculator||SBI Home Loan Processing Fees And Other Charges|
|SBI Home Loan Application Status||SBI Home Loan Procedure||SBI Home Loan Interest Rate||SBI Home Loan Application Form|
|SBI Home Loan Balance Transfer||SBI NRI Home Loan||SBI Home Loan Customer Care||SBI Plot Loan|
|SBI Home Loan Documents Required||SBI Home Loan Statement|