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  • SBI Pre-Approved Home Loan (PAL) Reviews

    For those who wish to have, construct or purchase a house or flat, State Bank of India offers some of the most attractive finance options in the country. SBI Home Loans are some of the most sought-after home loans which offer multiple feature and benefits, like no other. Some of the unique advantages of SBI Home Loans are low processing charges, no prepayment penalties, multiple types of home loans to choose from, low interest rates, no hidden costs and a wide spread network of over 15,000 branches, any of which you may walk into and apply for the most suitable home loan.

    The SBI PAL is a pre-approved home loan which basically sanctions the loan limit to customers, before finalization of the property in order to enable the customer to successfully negotiate with the builder / seller. For availing the SBI Pal Home Loan, the applicant’s loan eligibility will be assessed on the basis of his/her income details. A non-refundable processing fee will be applicable on this home loan and will be collected at the time of loan sanctioning.

    SBI Pre-Approved Home Loan Interest Rate:

    Borrowers Category Interest Rate
    • 6.75% p.a. onwards (for salaried women)
    • 6.90% p.a. onwards (for non-salaried women)
    • 6.80% p.a. onwards (for salaried men)
    • 6.95% p.a. onwards (for non-salaried men)
    • In case of women borrowers, the lady must either be the sole applicant or the first co-applicant of home loan.
    • The property proposed for the loan must either be in the sole name of the woman borrower or she must be the first owner in case of a joint-ownership.

    Features and Benefits


    This loan must be repaid within a maximum tenure of 30 years or till the borrower reaches the age of 70 years, whichever occurs first. The moratorium period / repayment holiday period is included within the repayment period.

    Validity Period:

    The Pre-approved Loan Arrangement Letter (PLAL) issued by the bank will be valid for 4 months. Applicants must submit the property documents within the validity of the PLA Letter. Please note, no processing fee will be levied at this stage.

    Loan Amount:

    The minimum amount of loan applicable with the SBI PAL is Rs 10 lakh. The PLA Letter will mention the loan amount which the borrower is eligible for, which will be calculated on the basis of the prevailing interest rate.


    The processing fee structure (including GST) is as under:

    Home Loan Amount Processing Fee
    Up to Rs 25 lakh 0.35% of loan amount, minimum of Rs 2,000/-
    Above Rs 25 lakh and up to Rs 75 lakh Rs 6,500/-
    Above Rs 75 lakh Rs 10,000/-

    SBI Home Loan Festive Offer

    The State Bank of India is offering special discounted rates for its customers under the festive season offer. Under the limited period offer, borrowers will be able to avail home loans starting at the rate of 6.70% p.a. irrespective of the loan amount. During this drive, the bank is also offering a waiver on the processing fee of the loan and giving out special incentives for non-salaried borrowers as well.

    SBI PAL Eligibility


    Applicant must not be below 18 years of age and not above 70 years of age at the time of loan maturity.

    Loan Amount:
    • The amount of loan which you can take depends on factors like the applicant’s age, income, assets & liabilities, repaying capacity, cost of the proposed house/flat etc.
    • To add to your eligibility, you may choose any of the following options:
      • Income of your spouse / children living with you, provided they have a steady income and have their salary account maintained with SBI.
      • Expected rent accruals of the house / flat which you wish to purchase, if you plan to rent it out.
      • Depreciation (subject to conditions).
      • Regular income from all sources.


    1. What is the security required for the SBI Pal Home Loan?

      An equitable mortgage of the property will be accepted as valid security for the home loan.

    2. Are there any additional charges payable by the SBI Pal Home Loan borrower?

      Yes, the borrower must pay the nominal pre loan sanction and post loan sanction charges like advocate’s fee, valuer’s fee, stamp duty, property insurance fee, etc.

    3. Is there any pre-closure / prepayment penalty applicable on the SBI Pal Home Loan?

      No, there is no prepayment / pre-closure penalty charged with this loan.

    4. What is the minimum amount which can be taken with the SBI Pal Home Loan?

      The minimum amount which can be taken is Rs 10 lakhs.

    5. For how long is the Pre-approved Arrangement Letter (PLAL) valid?

      The PLAL is valid for a period of 4 months.


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