SBI Home Loan – The search for your perfect home loan ends here! Detailed information about eligibility criteria, interest rates, and linked credit score is provided in this article. Also, learn about the application process and how to secure the best home loan. We’ll also cover the SBI Home Loan eligibility criteria. Listed below are some important facts you should know. Read on to discover how this home loan works.
SBI Home Loan eligibility criteria
One of the most important SBI home loan eligibility criteria is your total income. The lender will look at your current employment, company, and years of experience to determine your repayment capacity. Having a job with a stable income and job stability is preferred, as this will give you more years of service to repay the loan. Having a higher amount of debt, however, is not always a good sign. If you are self-employed, you should at least have been in business for 5 years to demonstrate the ability to repay a loan.
If you’re self-employed, you can apply for an SBI home loan even if you’re not salaried. The SBI has a very easy process for non-salaried borrowers. In fact, they even agree to service part of the pre-EMI interest during the moratorium period, debiting it directly into the borrower’s home loan account. This is intended to encourage people to buy a home, as it helps the builder generate maximum sales.
Interest rates
The State Bank of India offers two types of SBI home loan interest rates: fixed and floating. Fixed interest rates mean that the borrower will pay a fixed amount each month as interest, regardless of market conditions. Those with a CIBIL score of 800 or more will pay 7.05 percent interest on their loan. For borrowers with a credit score of 750 or less, the interest rate will be 7.15 percent. Those with a credit score of 700 or lower will pay 7.25 percent interest on their home loan.
The SBI has increased its repo-rate linked lending rate to 7.55% from 7.05%, a few days after the Reserve Bank of India (RBI) raised its repo rate to 4.90%. The SBI has also raised its marginal cost of funds-based lending rates, bringing the six-month MCLR to 7.35%, the one-year MCLR to 7.40%, and the two-year MCLR to 7.60%. SBI home loans are typically linked to the one-year MCLR, with higher amounts attracting interest rates.
Credit score linked
The State Bank of India (SBI) has reduced the interest rate of credit score-linked home loans to 6.70 percent, from 7.15 percent before. These savings translate to around Rs 8 lakh in interest savings for borrowers with a credit score of 700 or higher. Currently, the interest rates charged by SBI are tied to the repo rate. However, a lower credit score may not mean lower interest rates for borrowers.
The SBI looks at the nature of employment, including company and sector, and years of service. A stable job and income are preferred by the bank. Higher debt indicates a lower capacity to meet EMIs, so a higher credit score is generally more favorable for the applicant. However, the SBI also looks at other factors such as employment stability. Applicants must meet certain standards before they can be considered for an SBI home loan.
Process of obtaining a home loan
If your property meets SBI’s eligibility criteria, you can apply for a home loan. If approved, you will receive a sanction letter with details of the amount of home loan sanctioned, the interest rate, and the validity period. Other terms and conditions may apply. Before approving the loan, SBI will verify your eligibility by evaluating the legal and technical aspects of your loan application, and checking all the documents and proof of identity you submit.
When applying for a SBI home loan, you must make sure you have all your legal documents ready from the builder. Typically, the builder will have a booking receipt, a copy of a cheque, and a share of the agreement. Next, you must visit a SBI panel advocate for verification. This person will review your Sales Agreement, Construction Agreement, and Encumbrance certificate, as well as your receipt for property taxes paid to date. Once these documents are verified, your application will be approved and you can start buying your dream home!
