SBI Home Loan Review 2022

State Bank of India Home Loan is among the most desired housing loan products in the country due to its lack of hidden fees and complete waiver of prepayment penalties. SBI offers competitive interest rates on house loans at 6.80 percent per annum. SBI offers a 70 bps interest rate discount with rates starting at 6.70 percent per annum and no processing fee. This promotion is valid until March 31, 2022. The loan term can be prolonged up to 30 years, allowing for a more manageable repayment time. These loans are subject to a processing fee of 0.35 percent of the loan amount (minimum Rs. 2,000; maximum Rs.10,000) plus applicable taxes. Women borrowers are also eligible for a 0.05 percent interest rate discount on SBI Home Loans.

SBI Home Loan Details

Interest Rate – 6.8% p.a. to 7.5% p.a.

Loan Amount – Based on eligibility

Prepayment or Foreclosure charges – Nil

Processing Fees – 0.35% to 1% of the loan amount

Rate Packages – Floating

EBR – 6.65%

SBI Home Loan Festive Offer 2022

No difference between salaried and non-salaried

SBI has eliminated the interest rate differential between salaried and non-salaried folks by offering the same rate regardless of vocation. Previously, non-salaried individuals were subject to a 15 basis point higher occupation-related premium on interest rates than salaried ones.

Waiver of the processing fee

As part of the festive period offers, the bank will also waive the processing fee for SBI home loans.

Cut in base rate and prime lending rate

SBI has also increased its prime lending rate from 12.2 percent to 12.3 percent and its base lending rate from 7.45 percent to 7.55 percent, effective December 15, 2021.

Reduction in interest rate

State Bank of India has decreased the interest rates on its credit-linked home loans as part of its festive season offer. The holiday offer’s annual percentage rate is 6.70 percent. These interest rates are valid until Mar 31, 2022. This is true regardless of the size of the home loan. This interest rate is also applicable to home equity lines of credit. This represents an approximately 45 bps point drop from the previous interest rate. This equates to a savings of nearly Rs. 8 lakh over 30 years on an Rs.75 lakh home loan.

Individuals with a credit score over 800 will pay 6.70 percent p.a.; those with a credit score between 751 and 800 will pay 6.80 percent p.a., and those with a credit score between 700 and 750 will pay 6.90 percent p.a.

For home loans under Rs. 30 lakh, people with a credit score of at least 800 will receive a 6.70 percent annual percentage rate, while those with a credit score of less than 800 will continue to pay the current interest rates.

A Look at the Various SBI Home Loan Schemes 

SBI offers a variety of home loan products to suit the needs of different borrowers. The offers are segmented into multiple loan categories, including home loans for NRIs, salaried individuals, government employees, defence and army personnel, pre-approved home loans for existing customers, and home loans for building and home improvement. The following are some of the most common SBI home loan products and their associated specifications:

SBI Realty Home Loan

The SBI Realty home loan enables home loan customers to acquire a plot to build a house. However, the house must be constructed on this land within five years of the loan being approved. Additionally, existing loan clients may apply for a second home loan to finance the construction of a house on a plot financed under the SBI plot loan plan. In this situation, the remaining balance on the real estate account will be liquidated first through the issuance of a home loan, and the remaining balance will be dispensed for house construction in phases connected to the stages of construction.

SBI Maxgain

SBI Maxgain is an overdraft home loan product that functions similarly to a savings or current account. Under this scheme, you can obtain an overdraft in the amount of the sanctioned house loan, and you can deposit any excess funds in your SBI Maxgain account. Additionally, the bank provides a cheque book, ATM/Debit Card, and internet banking services.

SBI Bridge Loan

The loan will be in the form of a Term Loan with 60% to 90% financing. Loan processing is simple, and disbursements will be faster. The maximum repayment period is two years, and the loan can be returned in one or more instalments. There will be no specified EMI for the repayment of the bridge loan.

SBI Shaurya Home Loan

SBI Shaurya house loan is a specially designed home loan product for Army and Defence employees. This program enables you to obtain a house loan at a cheaper interest rate and more favourable repayment terms. For example, you may qualify for a five basis point discount on the standard home loan interest rate. Additionally, debtors may be eligible for repayment up to a certain age, or for a repayment period of up to 30 years. Further, post-retirement home loan EMIs are limited to 50% of existing net monthly income.

SBI Home Loan Top Up

The plan is provided to existing home loan customers who require additional money over the principal balance of their existing loan to meet their financial obligations. SBI Home Loan Top-up has a lower interest rate than standard home loan plans, making it more affordable.

SBI Earnest Money Deposit Scheme

The SBI Earnest Money Deposit Scheme is a home loan lending product designed for those seeking earnest money to reserve a flat, construct a house, or acquire a plot. This scheme is only available to those who book a residence through housing agencies such as HUDA, PUDA, or housing boards. You can take advantage of the EMD scheme at a low cost of 10.45 percent per annum for a maximum duration of 12 months.

SBI Home Loan Eligibility criteria 

The following is a list of papers/documents that are required of all applicants:

Employer Identification Card

Complete loan application form with three passport-size photos appended

Proof of Identity:

PAN/ Passport/ Driver’s License/ Voter Driver’s ID card (any one)

Proof of Residence/Address:

PAN/ Passport/ Driver’s License/ Voter ID card, a recent copy of a telephone bill, an electric bill, a water bill, or a piped gas bill, or an Aadhar card (any one)

Property Documents:

Construction authorization (where applicable)

Registered Sale Agreement

Occupancy Certificate (in the case of a ready-to-move-in property)

Share Certificate (only in Maharashtra)

Maintenance Bill, Electricity Bill, and Receipt for Property Tax

Approved Plan Copies (Xerox Blueprints) & the builder’s Registered Development Agreement, Conveyance Deed (For New Property)

Receipts for Payments or bank account statements detailing all payments made to the Builder/Seller

Account Statement:

Bank account statement of last 6 months

If you have taken out any past loans from other banks, you must provide a loan account statement for one year

Proof of Salary for Salaried Applicant, Co-applicant, or Guarantor:

Salary Slip or Salary Certificate for the preceding three months

Copy of Form 16 for the preceding two years or copy of IT Returns for the preceding two fiscal years, acknowledged by the IT Department

Income Verification for Self-Employed Applicant/Co-Applicant/Guarantor:

Proof of business address

Last three years’ IT returns

Balance Sheet & Profit & Loss Accounts for the last three years

Certificate of TDS (Form 16A, if applicable)

Certificate of Qualification (for CA, Professionals & Doctors)