SBI home loan interest rate is presently the lowest starting at 9.15% per annum. It gives you the chance to book your own home within your budget. If you are an existing home loan borrower from another bank, you can transfer it to SBI. Read below the rates and other important details associated with SBI home loan.
| CIBIL Score | Interest Rates (P.a) |
|---|---|
| >=800 | 9.45% |
| 750-799 | 9.55% |
| 700-749 | 9.65% |
| 650-699 | 9.75% |
| 550-649 | 9.85% |
| NTC/No CIBIL Score/-1 | 9.65% |
| CIBIL Score | Interest Rates (p.a) |
|---|---|
| >=800 | 9.15% |
| 750-799 | 9.25% |
| 700-749 | 9.35% |
| 650-699 | 9.45% |
| 550-649 | 9.65% |
| NTC/No CIBIL Score/-1 | 9.35% |
| CIBIL Score | Interest Rate (p.a) |
|---|---|
| >=800 | 9.25% |
| 750-799 | 9.35% |
| 700-749 | 9.45% |
| 650-699 | 9.55% |
| 550-649 | 9.75% |
| NTC/No CIBIL Score/-1 | 9.45% |
| CIBIL Score | Interest Rate (p.a) |
|---|---|
| >=800 | 9.15% |
| 750-799 | 9.25% |
| 700-749 | 9.35% |
| 650-699 | 9.45% |
| 550-649 | 9.65% |
| NTC/No CIBIL Score/-1 | 9.35% |
| CIBIL Score | Interest Rate (p.a) |
|---|---|
| >=800 | 9.15% |
| 750-799 | 9.25% |
| 700-749 | 9.35% |
| 650-699 | 9.45% |
| 550-649 | 9.65% |
| NTC/No CIBIL Score/-1 | 9.35% |
Note:- 10 bps concession over the above proposed rates to enhance for serving defence personnel.
You can check your home loan EMI with the help of SBI home loan EMI calculator.
SBI home loan interest rates remain the best owing to numerous reasons discussed below.
SBI offers home loans at interest rates as low as 9.15%, thereby reducing the EMI significantly and raising the eligibility for numerous customers who could not get the nod earlier. The reduced EMI will further translate into reduced interest payments.
Salaried will get interest rates lower than their self-employed counterparts by as much as 0.15% per annum.
SBI Home Loan Interest Rates are based on the risk profile of the customers too. In case you pose less credit risk to the bank, you could get lower interest rates than the ones putting the lender at a greater risk. Now, the risk profile is assessed based on your credit score and overall financials. If your credit score is say above 750 and you earn high, the interest rate can lessen considerably.
If you are an existing borrower of a home loan at SBI whose interest rate is linked to base rate or MCLR, you have the chance to save more. SBI has started offering home loans based on Repo Rate, the rate at which the Reserve Bank of India (RBI) lends to commercial banks, from October 1, 2019. This rate is called External Benchmark Rate (EBLR), which has fallen to 6.65% following 115 basis point reduction in the repo rate so far in 2020. After adding some spread to it, SBI home loan interest rates come as 9.15% - 11.30% The rate is at least 30-40 basis points lower than that of MCLR-based home loans. Although SBI has cut both MCLR and base rate recently, they are still higher than EBLR-based home loans.
If your home loan is on a Marginal Cost of Lending Rate (MCLR), the rate reduction will not have an immediate impact. Your loan rate will change every year based on the prevailing rates. So, if your loan was booked on 1st January 2018, the interest rate will reset 1st January every year based on the prevailing MCLR rates, irrespective of the changes made by the bank in between. In contrast, the EBLR-based home loan rates will change a few days or a month after the RBI changes the repo rate. So, there’s a greater degree of rate cut transmission with EBLR home loans. You can thus switch your existing MCLR or base rate home loan portfolio to that of EBLR and save on your payments. The bank will charge a fee of INR 5,000+18% GST for the same.
Already paying the home loan somewhere? Does that lender charge a greater rate of interest on the loan? In that case, you can transfer the outstanding loan balance to SBI and pay a lower EMI. The lower rate will further result in the reduction of interest outgo over time. But how much can you save on a balance transfer? That will depend on the outstanding balance amount, the difference in the rate of interest, and the time by which you transfer the outstanding balance. Let’s consider an example to get an idea of the savings on offer.
Example – You availed a home loan of INR 60 lakh for 20 years 3 years back at 9.00%. In 3 years time, the outstanding balance would reduce to INR 56,30,202. So, if you want to transfer the said balance to SBI, the rate of interest could be 7.55%-8.05% in the present scenario. Suppose you get the deal at 7.60%, how much can you save? The table below will give you the answer.
| Repayment Aspects | Details |
|---|---|
| Original Loan Amount | INR 60,00,000 |
| Interest Rate | 8.60% |
| Tenure | 20 Years |
| EMI | INR 52,450 |
| Estimated Interest Outgo Over 20 Years | INR 65,87,944 |
| Interest Paid Over 3 Years | INR 15,01,654 |
| Outstanding Balance at the End of 3 Years | INR 56,13,462 |
| New EMI @ 7.60% for the Next 17 years | INR 49,094 |
| Interest Payable Over the Next 17 Years | INR 44,01,750 |
| Interest Paid Over 3 years + Interest Payable Over the Next 17 Years | INR 59,03,404 |
| Savings on a Balance Transfer | INR 6,84,540 |
SBI will ask for a nominal fee for the balance transfer. Pay that and get the transaction executed.
The current processing fee for SBI home loans is 0.40% of the loan amount + applicable GST. The minimum and maximum amounts are INR 10,000 plus GST and INR 30,000 plus GST, respectively.
Yes, SBI offers pre-approved home loans, which makes it easy for the applicants to apply for a home loan.
Yes, if the spouse is a co-owner of the property or a guarantor of the loan that is being purchased with the loan amount, then SBI considers the spouse’s salary while determining the loan amount.
SBI’s home loan interest rates fluctuate on the first day of each quarter of the calendar year if there is any change in the Reserve Bank of India’s repo rate.
Yes, the prepayment penalty will be included in SBI balance transfer loans. However, the total loan amount will be evaluated as per the relevant SBI home loan eligibility requirements.
The current SBI home loan rate is around 9.15% p.a. to 9.65% p.a.
In 2022, SBI offers home loans at affordable rates of interest ranging from 9.15% p.a. to 9.65% p.a. However, the fact that the rate of interest would go down cannot be ascertained.
The interest rate of SBI home loans would change at quarterly intervals i.e. on the first day of the calendar quarter following the change in RBI’s Repo Rate.
You can avail a home loan worth INR 1 crore at an interest rate of 9.15% p.a. However, the actual interest rate can be influenced by various factors.
You can opt for the floating rate of interest, and can migrate to the new SBI interest rate structure.
Generally, the SBI home loan interest rate for senior citizens can start from 9.15% p.a. and can range upto 9.65% p.a. However, the final rate of interest is determined by the bank and the actual figure might differ.
SBI has launched Privilege Home loan especially for government employees. However, the loan amount is evaluated by considering factors like the applicant’s income and repaying capacity, age, assets and liabilities, cost of the property, etc.
Generally SBI provides home loans up to 90% of the property’s value only if the loan amount is up to INR 20 lakh. Any home loan above INR 20 lakh, will have an LTV ratio of 80%.
Yes, you can make prepayment in SBI home loan. All you need to do is transfer money to your loan account. Moreover, if you use the SBI net banking facility, you can transfer money and see the outstanding balance go down.