Move into your own home with a Home loan from SBI
However, one cannot expect to be staying at the same home for his entire life- he will surely have to move to a new place either due to personal or professional reasons at some point in life. Therefore, buying a home becomes a necessity for most people as they progress deeper into adulthood.
Real estate prices are soaring, and the cost of homes are considerably higher than what they were a decade ago. The older generation was usually able to get the house of their dreams with little to no hassle, but it is not the case in the current scenario. Owing to rapid urbanisation and expansion of cities, getting your dream home at the right place has become unaffordable without the help of banks for most of us.
It is in such situations that buying a home with a home loan becomes more attractive.
Many large financial institutions now provide home loans to the needy, so that they are able to achieve their dream of owning a house. A home loan refers to a large amount of money that the person borrows from banks or other institutions in order to buy the house they want. The house itself becomes collateral for the amount, and the bank will gain the ownership of the house in case the borrower is unable to pay the outstanding amount on their loan. The real estate property need not even be a personal house- it can even be a property for commercial purposes. Once the entire amount is paid, the ownership of the property will be transferred over to the borrower.
The payment is to be made as monthly instalments of varying amounts according to the policy of the bank. The term of the loan is usually in the decades, but foreclosure options will be available in most cases. Home loans are one of the few types of loans that are encouraged among customers, and among the cheapest ones too. As you continue paying the principal, the interest amount is calculated on the outstanding amount and thus also reduces.
When you are applying for a home loan, you might need to provide documents which show your current income so that the bank knows that you are capable of paying back the amount you borrow. For people who have a large income, the interest rates might be lower than that of normal customers.
SBI Home Loan Interest Rate
State Bank of India, as everyone knows, is one of the largest and most well-known banks in the country. The bank provides home loans for customers who need them at attractive rates so that they can get to their long-held dream of owning a home.
The bank not only provides loans for people who need to buy a home but also for other reasons as well. There are loans available for house renovations, extensions and the likes. As in most cases, the house itself is the collateral for the loan.
The SBI Housing Loan interest rate for general customers is around 8.35 to 8.7% of the amount borrowed. For women who want to get loans, the interest rate is slightly lower at 8.3 to 8.65%. The tenure for this kind of SBI Home loans is around 3 decades or 30 years. The amount is to be paid as EMI, or monthly instalments. There is also a small processing fee for the loan, of around 0.35% with the minimum amount being Rs. 2000 and the maximum being Rs. 10000 (excluding tax). In case you want to close out the loan before the prescribed time, there are no extra charges levied.
The current SBI Home Loan interest rate is one of the lowest ones for housing loans in the nation. It also helps that the bank is known to be a friend of the people, and is one of the largest lenders in India. Recently, the bank also reduced its lending rates so that homes become more accessible to a chunk of the population. Therefore, around 80 lakh new customers have been benefitted by this decision.
For salaried individuals, the interest rate stands at 8.30% per annum- this is applicable for people who have an income of Rs. 30 lakhs per year or below. Owing to the Pradhan Mantri Awas Yojana scheme, customers will also be able to get a discount of Rs. 2.67 lakh if they are eligible for the loan.
Benefits of Opting for State Bank of India
Apart from the fact that the SBI Bank home loan interest rate is among the lowest in India, there are many reasons as to why you will be making a great choice with the State Bank of India.
If you choose to take a loan with a floating rate of interest, you will not be required to provide any prepayment for the loan. This means that the loan may end up being cheaper for you in the long term.
Also, women who are willing to buy the house of their dreams can get a loan at lower interest rates compared to the general customer. In any way, any individual above the age of 18 will be able to apply for the loan- however, the bank will definitely check if you are eligible to avail the loan.
The SBI Home Loan interest rate for existing customers give them a chance to save a little more over the term of the loan, by giving them the choice to switch to the MCLR Regime from the base rate. The interest rate gets lowered for the customer, and consequently, the monthly EMIs also decrease.
With State Bank of India, you will be making a great choice since they are among the premier banking institutions in the nation. Getting a home has never been easier, provided you are a salaried individual!