Bank of India (S.B.I.)
State Bank of India (SBI), the largest bank in India, is one of the market leaders in the home loan segment. It offers home loans for a variety of purposes:
- Purchase/ construction of new House/ Flat,
- Purchase of an existing House/ Flat,
- Purchase of a plot of land for construction of House and
Extension/ repair/ renovation/ alteration of an existing House/ Flat.
SBI Maxgain Home Loans enable the borrower to avail the loan as an Overdraft.
SBI-Flexi Home Loans offer the facility to avail Home Loan with a one time irrevocable option of combination of fixed and floating interest rates, and enable borrowers to hedge the risks arising due to unfavorable movement in interest rates due to interest rate volatility.
SBI-Realty Home Loans is an exclusive scheme to suit the requirements of borrowers intending to purchase a plot of land for construction of a house.
SBI-Freedom Home Loans is meant for NRIs, enabling the borrowers to avail loan by pledging other securities like Banks deposits/National Savings Certificates/ Life policies etc. standing in the name of the applicant/ third party ,thus doing away with the hassles of mortgage formalities. 'SBI-Freedom' Home Loans are customized for high net worth individuals.
- Minimum age of 18 years as on the date of sanction
- Steady source of income.
To enhance the eligibility for the loan amount, there is an option to club income of your spouse and children and expected rent accruals from property proposed while computing eligible loan amount.
- Minimum age 21 years
- Valid Indian Passport (for NRIs)/ valid foreign passport (for PIOs)
- Steady source of income
- Employed abroad for at least 2 years
- Valid job contract or work permit
- Minimum net monthly income (NMI) of US$ 500 or minimum Net Annual Income (NAI) of US$ 6000/- (or its equivalent in any other foreign currency)
SBI Rate of Interest*
Rate of Interest
Up to 5 years
Above 5 years and up to 20 years
* Revised April, 2007
Floating interest rate is linked to State Bank Advance Rate- SBAR. For up to 5 years, 2.00% below SBAR is charged, the current effective rate being 10.75% and beyond 5 years and up to 20 years, the current effective rate is11.25%.
Fixed rate loans up to 10 years can be availed of at12.75%. It is subject to interest reset at the end of every two years on the basis of fixed interest rates prevailing in the market then and will be subject to 'force maejure' clause. The rate for loans for deposit of earnest money for allotment of a plot/house/flat (floating rates only) stands at1% above SBAR Min. 13.75% per annum.
Repayment is permitted up to 70 years of age. For applicants up to 45 years of age, the maximum period is 20 years and for those over 45 years of age, it is 15 years. The repayment can be done in EMIs.
For NRIs, remittances from abroad through normal banking channels and out of funds in NRE/FCNR/NRO accounts are accepted.
- There is no cap on maximum loan amount for purchase/ construction of house/ flat.
- The loan amount is applicable to an applicant/ any one of the applicants aged over 21 years and up to 45 years, to the extent of 60 times Net Monthly Income (NMI) or 5 times Net Annual Income (NAI), subject to aggregate repayment obligations not exceeding 57.50% of NMI/ NAI.
- For applicant(s) aged over 45 years of age, it comes to 48 times NMI or 4 times NAI, subject to aggregate repayment obligations not exceeding 50%of NMI/ NAI.
For NRIs, the maximum loan amount for purchase of plot for construction of house is Rs. 20 lacs, for purchase of furnishings and consumer durables, it is10% of the project cost, subject to a maximum of Rs.3lacs and for repairs and renovation, it is Rs.10 lacs.
Processing fee is 0.50% of the loan amount with a cap of Rs.10, 000/-(including Service Tax). No administrative charges or application fee is charged.