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SBI Corporate Home Loan

Many graduates aspire to join the Corporate sector to kick-start their career. And why not? The private sector has been more attractive than any other type of job because of higher monetary opportunity, faster growth, travel opportunities, perks and benefits. Because of the sheer number of employees in big private companies, many products brands & services tend to offer special discounts and add-ons to attract those many numbers in sales. This is a win-win situation for both sides as employees are able to enjoy the benefits of being associated with their company and the seller is able to capitalize on the economics of sale through targeted approach. Financial products & services are in forefront to take this benefit. With higher pay scales in the corporate world, all banks and financial institutions want to get their share of pie from these high-income employees. SBI Corporate Home loan is one such product where home loans are provided to corporate entities (both public & private companies) for construction or acquisition of residential properties in the name of the company for use by their Directors/Promoters and Employees. This loan is also used for the takeover of home loans in the name of the company from other banks/HFCs.

Benefits of SBI Corporate Home Loan

1. SBI Corporate Home loan has been designed specifically for Corporate Residential requirements and for use by their employees.

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. SBI Home Loans is the largest mortgage lender in India. The interest rate offered will be the most competitive in the industry.

5. SBI offers Home Loan EMI Calculator that helps you in calculating the estimated EMIs on the basis of the principal amount of loan, rate of interest and loan tenure. This helps you in planning your finances during the loan period in a better way.

6. You can track your loan details online through the SBI online account.

7. Since SBI has such a wide network of bank branches across the country, you can operate and monitor your loan from any location. It need not be specifically the branch from where you would have taken the loan initially.

8. 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.

SBI Corporate Home Loan Fees

There are some minor processing charges levied by the bank on your bank 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

0.50%+ GST of the loan amount

Minimum at INR 50,000/- + taxes

Maximum at INR 10,00,000/- + taxes

Eligibility Criteria for SBI Corporate Home Loan

The customer must meet certain eligibility criteria for availing the SBI Corporate Home Loan. The bank will assess the financial stability of the corporate company and then accordingly offer an attractive scheme for its employees. While at a corporate level, a credit score is not checked, at an individual level, it is recommended to check it. A good credit score gives an assurance of your financial stability to the bank. Your individual credit score can be checked at www.creditmantri.com. 700+ is considered a good score and helps in avoiding rejection on any of your loan applications with the bank. In case, your score is low, it is suggested that you pay off your dues and then apply for a loan.

Mentioned below is the eligibility details for SBI Corporate Loan:

For Corporate Entities:

  • The company should be an existing borrower of SBI or a debt free company
  • The company should be in the line of business for at least 3 years
  • The organisation should have earned uninterrupted Net Profit in the last 3 years
  • Existing loans of the company, if any, should be regular and standard and also should not have been restructured during the last 3 years.
  • ECR of BBB and better for units having total exposure INR 10 cr. And above
  • CRA of SB-8 and better in respect of both existing SME/C&I customers and new customers. CRA will be arrived at based on the latest audited Balance Sheet

For SVP/Subsidiary of Corporate Entities will also be eligible for availing loan under this Scheme provided:

  • The Parent company fulfils the above-mentioned eligibility norms
  • The Parent company agrees to stand as a Guarantor for Home Loan
  • The estimated cash flow is sufficient to repay the EMIs or the Parent company gives an undertaking to service the Home Loan in addition to guaranteeing the loan

SBI Corporate Home Loan Interest Rates

The SBI Home Loan rates be it Corporate Home Loan or another type of Home Loan, offers the most competitive rates in the market. The current rate offered are mentioned below. These rates are subject to change as per the discretion of the bank.

CRAInterest Rate
SB – 1 & SB – 29.10%
SB – 3 to SB - 59.60%
SB – 6 to SB - 810.10%
SSB – 9 & SB – 10#10.85%

#Subject to approval from a competent authority

SBI Bridge Home Loan FAQs

1. What documents do I need to check before buying a new property?

Sale deed, Title deed, Approved Building Plans, Completion Certificate, Commencement Certificate, Conversion Certificate, Khata Certificate, Encumbrance Certificate, Latest Tax Receipts and Occupancy Certificate are some of the main documents required before buying a property.

2. How is the Interest Rate on Home Loan calculated?

It is usually calculated on monthly reducing or yearly reducing or daily reducing balance by the bank. SBI charges interest on daily reducing balance.

3. Can a Home Loan be Pre-approved?

Yes, one can get a pre-approved loan from the bank before buying a property.

4. Can I sell the property even when the home loan is outstanding?

Yes, it is possible to sell the property even when the home loan is not fully closed however with the prior consent of the bank. If the buyer wants to take a loan to buy the property, the process is easier he approaches the same bank. If the buyer wants to make outright payment, he can do it directly with the bank. The property papers will be released only after the loan is completed paid up.

5. How do banks value the property for insurance purposes?

The usual method followed by the banks is by multiplying the built-up area of the property with the cost of construction per square feet.

6. What documents are required for registration of an independent house?

Allotment papers of the plot, building plan approvals, transfer deed (in case of multiple owners), sale deed, PAN Card and photographs.

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