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SBI Home Loan Interest Rate

Investing in one’s own home or apartment is not a distant possibility today. With an array of home loans in the market, financial assistance to purchase or build that dream home is a realistic goal. Assessing one’s financial capacity and planning ahead in such an investment is an essential exercise in anybody’s life. It is a huge responsibility that requires immense financial and emotional planning.

A home loan helps in plugging the gap to finance your home or apartment. It could be a new one or an existing building. Banks offers home loan at an interest rate for a fixed period of time. In India, home loan interest rates are relatively cheaper to the ones in other countries. It starts from 8% to 9% per annum and therefore, makes for an attractive option to fund your own home. It can be considered as one of the best investments and the safest one.

SBI Home Loan Interest Rate

SBI Home Loan Interest rate depends on many factors such as the principal amount borrowed, income, credit history and market conditions. The Marginal Cost of Funds based lending rate (MCLR) considered by SBI is mentioned below:

TenureExisting MCLR (In %)Revised MCLR (In %)
Over night8.28.2
One Month8.28.2
Three Month8.258.25
Six Month8.48.4
One Year8.558.55
Two Years8.658.65
Three Years8.758.75
CategoryHome Loan (Term Loan) *Home Loan as Overdraft (Maxgain)*
Upto Rs.30 lakhsAbove Rs.30 lakhs & Upto Rs.75 lakhsAbove Rs.75 lakhsAbove Rs.20 lakhs & Upto Rs.30 lakhsAbove Rs.30 lakhs & Upto Rs.75 lakhsAbove Rs.75 lakhs & Upto Rs.3 crores
salaried
Women8.75 - 8.85% p.a8.90 - 9.00% p.a9.00 - 9.10% p.a8.80 - 8.90% p.a9.00 - 9.10% p.a9.15 - 9.25% p.a
Others8.80 - 8.90 % p.a8.95 - 9.05% p.a9.05 - 9.15% p.a8.85 - 8.95 % p.a9.05 - 9.15% p.a9.20 - 9.30% p.a
Non - Salaried
Women8.90 - 9.00% p.a9.05 - 9.15% p.a9.15 - 9.25% p.a9.00 - 9.10% p.a9.20 - 9.30% p.a9.35 - 9.45% p.a
Others8.95 - 9.05% p.a9.10 - 9.20% p.a9.20 - 9.30% p.a9.05 - 9.15 % p.a9.25 - 9.35% p.a9.40 - 9.50% p.a

It is important to note here that the interest rate is subject to change as per the discretion of the bank. It also depends on the applicant’s income, loan amount, tenure and credit history.

SBI Home Loan Overview

SBI Home loans are the largest mortgage lenders in the country. With a variety of products, low interest rates and low processing fees, it is indeed one of the best home loans available in the market. The SBI home loan interest rates are one of the most competitive ones in the current market. Some of the features and benefits are:

  • One of the lowest interest rates in the market.
  • The bank charges very nominal processing fees on home loans.
  • There are no hidden charges for taking a home loan with SBI.
  • SBI does not charge prepayment penalty on home loans.
  • Maximum tenure is 30 years for SBI home loans.
  • Overdraft facility is available with SBI home loans.
  • The bank offers special concessional rates to women borrowers.
  • The home loan interest rate is calculated as per the daily reducing balance method.
  • Different types of home loans cater to various needs of different people.

Factors That Affect Interest Rate on Your Home Loans

The interest rate offered on home loans depends on each individual’s profile and credit history. Some of the main factors that affect the home loan interest rate are:

Credit Score :

Checking one’s credit history is an essential step before applying for a home loan. Banks rely on the credit worthiness of an individual before deciding to grant a loan. If the candidate has a good score, one can easily get a loan at competitive rate. In case of a lower credit score, it is prudent to pay-off existing debts and keep your overall balance sheet on the positive side so as to get a home loan.

Loan Amount :

The home loan interest rate is directly dependent on the amount of loan taken. If a huge sum of home loan is being taken, the interest rate will also be on the higher side. This is because it is a higher risk taken by the bank to offer a huge amount of loan in case repayment does not follow through.

Down Payment :

While purchasing a home, a down payment needs to be paid to block the sale for the buyer. If the down payment is on the higher side, the loan to be taken will be lesser. This reduces the risk for the bank and therefore, better interest rate can be negotiated. The more down payment is done, the lesser the principal loan amount and therefore, lesser interest rate.

Type of Interest :

Home loan interest rates are available in fixed and floating formats. One can choose between the both depending on individual feasibility. A fixed rate of interest remains the same throughout the tenure of the loan. A floating rate of interest varies as per market condition.

SBI Home Loan Eligibility

SBI offers home loans on the basis of certain eligibility criteria. Some of the main criteria considered by the bank are:

  • Resident Indian
  • Minimum age is 18 years and Maximum of 70 years
  • Maximum loan tenure offered is 30 years
  • Loan amount depends on the applicant’s profile and credit history

How to calculate EMI on SBI Home Loan

SBI Home loans provide a simple tool online to calculate EMI on your loan. This helps in estimating the monthly outflow on your loan and align your finances accordingly. The EMI calculator is quite easy convenient to use as it requires only the loan amount, tenure of the loan and the interest rate as inputs. This generates the monthly instalment amount along with the total interest to be paid.

One can use this EMI calculator as many numbers of times as one wants. Even before a loan is given out, one can use this tool to estimate the cost of taking a home loan and also plan their monthly budget to manage the loan. The EMI calculator gives instant and accurate results.

CreditMantri offers home loan EMI calculator which helps in calculating the monthly pay-outs. A detailed break up is also shown on the principal amount, interest amount and the processing fee. An EMI calculator is essential to your financial planning if you plan to take a home loan.

SBI Home Loan Status

After applying for a home loan with SBI and submitting all required documents, the bank shares an application reference number. The bank processes all documents and assesses the applicant’s profile to see if the individual meets the minimum criteria for a home loan. If the applicant is eligible, the bank will communicate the loan approval and thereafter, disburse the loan.

The status of the loan application can be easily checked online with the help of the reference number. Alternatively, one can do this by visiting the nearest bank branch. The 24x7 customer care service will also provide the status details of your home loan application.

How to Apply for SBI Home Loan

There are two main ways to apply for an SBI home loan.

Offline : One can visit the nearest SBI branch to apply for a home loan. Here, you can consult the bank representative on various types of home loan, understand the eligibility criteria and documentation required. SBI has dedicated home loan branches across cities and retail processing centres that help you with home loans.

The SBI customer care service can also help with details of the loan and register your enquiry for a home loan. A bank representative will reach out to you with further details and application process.

Online : One of the easiest and fastest way to apply for a home loan is online. The SBI website allows you to apply online for a home loan and make submission of documents. Post assessment, one of the bank representatives will contact you for further steps.

CreditMantri allows you to check and compare home loans available in the market. The eligibility criteria as well as application process is easily available here. One can check credit score to be able to work out a good deal on the home loan.

SBI Home Loan Interest Rate: FAQs

1. What do you mean by resident of India?

As per the Foreign Exchange Management Act (FEMA) 1999, an Indian who has resided in India for more than 182 days in the previous financial year on account of employment, business or vacation is a resident of India.

2. Do women get concessional interest rates from SBI?

Yes, women applicants get a special concession of 0.05% per annum on home loans. The female applicant must be a sole applicant or a co-applicant for the home loan. Also, she should be the sole-owner or co-owner of the property being financed.

3. Does SBI offer pre-approved home loan?

Yes, pre-approved home loan is available with SBI.

4. What are the different types of home loans available with SBI?

SBI offers different types of home loans to suit the different needs of people. Home Purchase loan, Home Improvement loan, Home Construction loan, Home Extension loan, Land Purchase loan, Home Conversion loan, Balance transfer loan, NRI home loan and loan against property are the different types of loans available with SBI.

5. What is average tenure of a home loan?

The average tenure of home loan with SBI is between 3 and 30 years.

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