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SBI Bridge Home Loan

We all wish to upgrade to something better throughout our lives. Be it a new mobile phone, new gadget, adopt new technology to make our lives easier or invest in a premium asset. As we progress economically, the desire to purchase newer things increases. This holds true for our homes too. Many people today are able to buy a home in their earning lifecycle and also aspire to purchase a better home to suit their tastes. One can sell their current home and invest in a new one to manage the transition financially and not locking huge amount of funds. However, this transition is easier than it seems. Sometimes, due to time or other unforeseen reasons, your current house may not be sold at the right price. And one is not able to buy the new house at the desired time. This can be made possible now with the help of SBI Bridge Home loan. This product is specifically designed for those home owners who want to buy bigger houses or move to a different location by selling off their existing home. The SBI Bridge Home loan helps in mitigating the shortfall of funds that may happen due to time lag between sale of existing property and purchase of the new one.

Benefits of SBI Bridge Home Loan

1. SBI Bridge home loan is a short term loan that will meet your working capital requirement till proper funds come through.

2. SBI offers low interest rates on this loan and low processing fee.

3. There are no hidden charges when you take the loan. All details are shared upfront and transparent.

4. There are no prepayment charges applicable.

5. Loan Interest charges are applicable on the daily reducing balance.

6. Repayment of the loan can be done up to 2 years.

SBI Bridge Home Loan Fees

There are some minor processing charges levied by the bank on your bridge loan application. Do note that these fees are subject to revision by the bank from time to time. It is advisable to check the fees applicable at the time of your application.

Processing Fees

0.35% of the loan amount + taxes

Minimum at INR 2000/- + taxes

Maximum at INR 10,000/- + taxes

Pre-Sanction Fee

Advocate fee for property valuation and title investigation report

Valuer’s fee for valuation report

Post-Sanction Fee

Stamp Duty payable for loan agreement & mortgage

Property Insurance premium

CERSAI Registration Fee of INR 50+GST upto INR 5 lac limit; INR 100+GST for above INR 5 Lac

The Pre-Sanction and Post-Sanction fees are to be paid by the customer on actuals.

Eligibility Criteria for SBI Bridge Home Loan

While applying for a home loan, it is smart to check the eligibility criteria listed out by the bank. This will help in avoiding any unnecessary hassles at the time of loan application. An important step towards this action is checking your credit score. A good credit score is considered to be the foundation of your financial life. It checks the credit worthiness of the individual on the basis of regular income, expenses, liabilities, credit dues and so on. A score is generated on the basis of these details which becomes an indication of your financial capabilities. Generally a score of 700+ is treated as a good score by financial institutions. You can assess your credit score at www.creditmantri.com which is also your one-stop-shop point for various loans and financial assistance options. In case, your credit score is the lower side, it is recommended that you pay off any pending debts or dues and then apply for a home loan. This will avoid a possible rejection on your loan application.

Who can apply?Resident Indian
What is the age limit?18 to 70 years
What is the loan tenure?Upto 2 years of repayment
How much is the loan amount?*

Minimum INR 20 lacs

Maximum INR 2 cr

Please note that the loan tenure also depends on the customer’s risk profile, age, specific repayment scheme and any other terms and conditions as applicable by the Bank.

*Funding is normally approved on the basis of the repayment capacity of the customer and is subject to market value of the property, as assessed by State Bank of India

SBI Bridge Home Loan Interest Rates

A short term home loan like the SBI Bridge Home Loan works on a simple interest rate method for the 2 year period. However, these rates are subject to revision by the bank at their discretion. It is important that you check with the bank on the prevailing interest rates at the time of loan application.

TenureEffective Rate
1st Year10.70%
2nd Year11.70%

Documents Required

The Bank requires a certain set of documents along with the completed and signed Loan Application Form. These documents have been mentioned below:

PurposeDocuments Required
Proof of both Identity and residence
  • Employer Identity card
  • Loan Application: Completed Loan Application Form duly filled in and affixed with 3 passport size photos
  • Aadhaar Card/PAN/Passport/Driver’s License/Voter ID
  • Recent copy of Telephone Bill/Electricity Bill/Water Bill/Piped Gas Bill
Property Papers
  • Permission for construction (where applicable)
  • Registered agreement for Sale (only for Maharashtra)/Allotment Letter/Stamped Agreement for Sale
  • Occupancy Certificate (in case of ready to move property)
  • Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, property tax receipt
  • Approved Plan copy & Registered Development agreement of the builder, conveyance deed (for new property)
  • Payment Receipts or Bank A/c statement showing all payments made to builder/seller
Account Statement
  • Last 6 months’ Bank Statements for all bank accounts held by the applicant(s)
  • Loan account statement for last one year if any previous loan from other banks/lenders
Income Proof (for salaried Applicant/Co-Applicant/Guarantor)
  • Salary slip of last 3 months
  • Copy of Form 16 for last 2 years
Income Proof (for non-salaried Applicant/Non-Applicant/Guarantor)
  • Business Address proof
  • IT returns for last 3 years
  • Balance Sheet and P&L account for last 3 years
  • Business License details (or equivalent)
  • TDS Certificate
  • Certificate of Qualification (for CA, Doctors, professionals)

Other Advantages of SBI Bridge Home Loan

The SBI Bridge Home Loan is the perfect solution for your short term financial gap. Some of the advantages of taking this loan are:

  • SBI Home Loans is the largest mortgage lender in India. You can be rest assured that the interest rates and terms & conditions laid out by the bank will be the best in the industry
  • A virtual tour of SBI Home loans on their website introduces you to the world of their Home Loans, its sourcing, processing, sanctioning and documentation. This helps you get a very good idea about their processes and helps in preparing yourself for a hassle-free interaction.
  • You can take SBI loans anywhere in India through one of their vast network of bank branches.
  • The SBI Home Loan EMI calculator helps you understand the estimated EMI on your loan on the basis of the principal loan amount, interest rate and loan tenure. This is very crucial in planning your financial requirements during the period of the loan.
  • Online tracking of your loan application is possible.
  • It is quite simple and easy to apply for the Bridge Home loan through their website. SBI has a facility of instant e-approval in simple steps of Filling Income & Property details, Apply for loan offers, complete your application and Instant approval done.
  • Women applicants or co-applicants get special benefits with SBI Home Loans.
  • SBI has an elaborate network of branches all across the country. You can operate and monitor your loan from anywhere and also make payments in any branch irrespective of the specific branch from where the loan is taken.

SBI Bridge Home Loan FAQs

1. What does a Home Insurance policy cover?

It cover the structure of the house, contents and possessions. Some policies combine various personal insurance features too.

2. Can I get an in-principle loan approval and avail the loan later?

SBI offers an in-principle loan approval before you select a property on the basis of your income and capacity to repay. This makes the process of identifying and buying a house lot easier as you know in advance how much funds can be expected.

3. How do I benefit from the interest calculated on a daily reducing balance for SBI Home loans?

SBI Home Loan interest is calculated only on the outstanding loan amount, which reduces every time you pay off your EMIs or make any prepayments. In the case of annual reducing balance method, you pay the interest on repayment amounts for the coming one year as the interest for the year is determined on the basis of the balance outstanding at the beginning of the year.

4. What is the difference between fixed rate and floating rate of interest?

When the interest rate remains constant throughout the period of the loan, it is called fixed rate. Floating interest rate can decrease or increase on the basis of market fluctuations.

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