SBI Commercial Real Estate (CRE) Loan

SBI CRE Eligibility Criteria

Here are the criteria that you need to meet if you wish to apply for this home loan from SBI:

1. Nationality – Resident Indian.
2. Age:
   • Minimum: 18 years.
   • Maximum: 70 years.
   • Maximum loan tenure – 30 years.
3. Maximum loan tenure – 30 years.

Features and Benefits of SBI CRE Loan

SBI offers tailored home loans to meet specific financial requirements when acquiring a home. Here are the features and benefits of this home loan:

• This home loan is also available as an overdraft.
• Low processing fee of 0.35% of the loan amount (excluding tax) subject to a minimum of Rs.5,000.
• Low interest rates from 7.15% p.a.
• Women will enjoy concessional interest rates.
• Interest calculated on the daily reducing balance.
• No hidden fees and charges.
• No prepayment penalty for closing the loan early.

Documents Required to Apply for SBI CRE Loan

Here are the documents that are required to be submitted when applying for the CRE Home Loan:

• Employer ID Card.
• Completed loan application with 3 passport size photos affixed.
• ID proof (one of these): Passport/PAN/Voter ID/Driving License.
• Address proof (one of these): Latest utility bill – water/telephone/electricity/piped gas, Aadhaar card, Driving License, Passport.

• Construction permit (if applicable).
• For ready to move in property – Registered Agreement for Sale.
• Property tax receipt, electricity bill, maintenance bill, share certificate (applicable to Maharashtra only).
• For new property – Conveyance Deed.
• Builder’s Registered Development Agreement and a xerox copy of the blueprint of the approved plan.
• Bank account statements or payment receipts of payments made to the seller/builder.

• Latest 6 months’ bank account statements for all existing bank accounts held.
• In case of existing loans from other lenders – account statements for the past year.
  1. For salaried employees, co-applicants, and guarantors:
     • Latest 3 months’ salary certificate/payslips.
     • Latest 2 years’ Form 16/latest 2 financial years’ IT return copy, with acknowledgement from the IT department.
  2. For self-employed, co-applicants, and guarantors:
     • Address proof of the business.
     • Latest 3 years’ IT returns.
     • Latest 3 years’ Profit & Loss account and balance sheet.
     • TDS certificate with Form 16A (if applicable).
     • Business License Details (or an equivalent).
     • For doctors/CA/other professionals – certificate of qualification.

FAQs on SBI Commercial Real Estate (CRE) Loan

1. What is the maximum number of home loans I can have under this scheme?

   You can have a maximum of 5 home loans under your name, including your existing loans and the proposed CRE Home Loan. However, this number does not include closed loans.

2. Is there a limit on how many flats/properties I can own when applying for the CRE Home Loan?

   Yes. The maximum number of properties (houses, flats, plots) that you can own is limited to three.

3. Can foreigners apply for this home loan?

   No. This scheme is only applicable to Indian Residents.

4. What is the maximum loan-to-value (LTV) offered under an SBI Home Loan?

   You can get an LTV ratio of up to 90%. However, remember that the interest rate is higher for higher LTV ratios.

5. Are salaried and self-employed individuals offered the same interest rates?

   No. Salaried employees will get a lower interest rate when compared to self-employed individuals. However, women applicants are offered the lowest rates as they enjoy concessional rates on this home loan.

6. What is the minimum processing fee charged on this home loan?

   The minimum processing fee charged is Rs.5,000. However, note that other expenses such as charges for the valuation report and TIR will have to be separately by you.

7. What are the other charges involved in the process of applying for this loan?

   Some of the additional expenses that you will incur include the advocate’s fee, valuer’s fee, stamp duty, insurance premium for the property, and CERSAI Registration fee.