SBI Loan Against Property Interest Rate Dec 2018

Last Updated 14th Dec 2018

SBI Mortgage Loan Interest Rates

5th Dec 2018 – RBI keeps Repo Rate unchanged at 6.50%

SBI offers Loan Against Property starting at interest rate of 10.30% which is one of the best mortgage loan rates in India. Current 1 Year MCLR benchmark rate is 8.55%. Check Best Offers

SBI Loan Against Property Features
Processing Fee Upto 1.00%
Max Tenure 15 years
Lowest EMI Rs. 1,093 per lakh
Prepayment, Foreclosure Charges Allowed with nil charges for floating rate loans to individuals
Age Min 18 and Max 70 years for Salaried
Min 18 and Max 70 years for Self Employed

Interest calculated on daily reducing method

Apply for Loan Against Property @ 8.80%*
Rs.
Rs.
+91

SBI Loan Against Property in India

SBI offers loan against property to people who require funds to meet their business as well as personal needs against the mortgage of their existing property. Taking a loan from SBI has the following benefits:

  • Interest calculated on daily reducing method
  • Complete transparency in account operation
  • No hidden fees or administrative charges
  • NIL prepayment charges for floating rate loan
SBI Floating Rate Loan Against Property
SBI Mortgage Loan Interest Rates
SBI Loan Against Property Floating 10.30% - 11.75%
SBI Loan Against Property Floating
Loan Amount Rate
Upto Rs. 25 Lakh 10.30%
Rs. 25 Lakh - 1 Cr10.80%
Rs. 1 Cr - 2 Cr11.25%
Above Rs. 2 Cr 11.25%
Loan against property rate in SBI depends upon
  • Loan amount: Property loan rates in SBI depends upon the loan amount you apply for. You can get minimum loan of Rs. 25 Lakh from SBI.
  • Your Net Monthly Income: Income helps you in identifying your rate of interest. Bank's rate varies with your monthly income. Higher the income, lesser will be the rate.
  • Type of loan opted for: SBI also offers differential rates for different profile of customers and also fixed and floating rate schemes. Loan against property interest rates may be higher or lower for special loan product.
  • Type of property: Typically, loan against prime residential properties are easier to get and can be availed at the lowest rates compared to loan against commercial and industry properties.
  • Your profession: SBI may charge a higher interest rate on a mortgage loan by a salaried as compared to a self-employed professional or a businessman. A self employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or business compared to salaried who will most likely take a mortgage loan for his personal purposes.

Interest Rate and its impact on SBI Loan Against Property Eligibility

SBI has detailed criteria to determine a potential borrower’s eligibility for mortgage loans. Some of the key criteria are:

Eligibility Criteria Details
Age 18 to 70 years
Minimum Income Rs. 25,000
Loan Amount Rs. 25 Lakh to Rs. 7.50 Cr
Minimum years of business existence 2 years
Minimum work experience 5 years
Minimum Credit Score 650 and above
Loan to Value Ratio Upto 65%
FOIR (Fixed Obligations to Income Ratio) 0.65
  • Age: Age is one of the important factors to examine your eligibility. SBI offers loan to salaried and self employed at the age of 18 years. Any person taking loan at the age of 25, can get loan of up to 15 years, thus reducing servicing burden on his existing income and hence, improving his loan amount eligibility.
  • Income: Property loan is mostly taken by self employed individuals primarily to meet their business requirements. However, in order to increase the loan amount you may club the income of family members like your spouse, parents, children and siblings.
  • Business Stability: Self employed person should be in business for a minimum of 5 years during which the business should be profitable. SBI will ask for ITRs of 3 years to consider you as eligible for LAP.
  • CIBIL Score: Past CIBIL history and repayment record of existing loans and credit cards has adverse impact on your loan eligibility. If you have a poor repayment record, then you may find it difficult to get a loan. A regular repayment record not only improves your chances of getting a loan, but also increases your loan eligibility. SBI grants loan to borrowers with a CIBIL score of 650 and above.
  • Loan Amount: SBI gives you an amount ranging from Rs. 25 Lakh to Rs. 7.50 Cr. To improve chances of approval, apply for a loan amount that you can comfortably service.
  • Property Value: The value of the property to be mortgaged is used to calculate maximum loan eligibility based on the maximum permissible LTV ratio which can range upto 65% depending on the type of property. SBI will conduct a detailed property assessment to establish that all legal titles are in place, assess the market value of the property, and its sale ability. LTV is calculated based on the estimated fair market value or registered value, whichever is lower.
  • Fixed Obligations to Income Ratio (FOIR): The bank will also calculate the proportion of your fixed obligations to your income to calculate the Fixed Obligations to Income Ratio, known as FOIR. Fixed obligations include estimated average monthly expenses and EMIs you are paying on other existing loans. Minimum FOIR to be eligible for a SBI mortgage loan is 0.65.

SBI Loan Eligibility Calculator

SBI Property loan Eligibility is the amount of loan you can avail based on an assessment of your repayment capacity as well as the value of property. You can use eligibility calculator to get a fairly accurate estimate of your potential eligibility subject to the information provided by you.

SBI Mortgage Loan EMI and Interest Calculator

You can also use online SBI Loan against property EMI Calculator to calculate loan EMIs. EMI is a fixed amount that you are required to pay each month towards the repayment of your loan till the end of tenure

  • EMI calculator of SBI helps you to calculate your monthly EMI at different rate of interest and also check and compare lowest EMI per lakh on LAP.
  • Higher the loan amount, higher the EMI. You can compared the estimated EMI with your monthly repayment capacity to decide on a level of EMI you can comfortably service without creating financial burden.
  • Loan tenure matters equally as higher loan tenure reduces your EMI
  • Another factor which affects your EMI is interest rate on the loan. Higher the interest rate, higher will be the EMI. However, your cumulative interest outgo will be significantly high in a longer tenure loan compared to a short tenure loan. Loan against property interest rate comparison of different banks will allow you to choose the cheapest loan and hence, improve your eligibility

What are the benefits of calculating SBI Mortgage loan EMI?

  • EMI calculator helps you to calculate your monthly EMI at different rate of interest
  • SBI Mortgage loan EMI calculator helps you to know your capacity to repay the loan after maintaining your standard of living
  • Getting an EMI estimate will help you ascertain the monthly EMI you can comfortably service, thus allowing you to choose the right combination of loan amount and loan tenure.
Other Charges

In addition to interest rates, property loan also carry some other charges which include:

  • Foreclosure Charges - These charges are to be paid in case you want to repay your entire loan amount before the end of tenure period. SBI allows prepayment of loan against property with Nil prepayment charges.
  • Processing Fee - SBI charges a processing fee of 1.00% loan amount.
  • Other Charges - Bank also charges technical and legal charges which are explained to the customer during the loan process.
SBI Loan Against Property Top up, Transfer

Transfer of LAP from another bank to SBI

SBI offers mortgage loan balance transfer from another bank. This is subject to your meeting other eligibility criteria of SBI.

You can avail additional top-up loan against property from SBI, subject to your eligibility.

Loan Agaiinst Property SBI Products

SBI offers customized products for specific customer segments designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

Loan against commercial property
Description:
  • Loan against commercial property's value is calculated at the current market value
  • Applicants can easily avail loan against existing commercial property or against commercial plot
  • Loan against commercial property is usually taken for business expansion, machinery purchase or any other business requirement.
Who is Eligible?
  • Salaried, Self employed professional and non professional not more than 70 years of age are eligible to avail loan against commercial property

    Loan Agaiinst Property SBI Products

    SBI offers customized products for specific customer segments designed to meet their loan requirements. Some of the popular products with their basic features are as follows:

    Loan against residential property
    Description:
    • Loan against residential property's value is calculated at the current market value
    • Net monthly income should be equal to or more than Rs. 25,000
    • This loan is usually taken to meet personal needs like, acquiring assets, education needs, marriage by mortgaging residential property plot.
    Who is Eligible?
    • This loan can be availed by Salaried, Self Employed Professionals and Self Employed Non Professionals up to 70 years of age

      SBI Loan against property documents required

      For Self-Employed
      • Filled up loan application form
      • 2 Passport Size Photo
      • ITR of last 3 years
      • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
      • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
      • Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile
      For Salaried employee
      • Filled up loan application form
      • 2 Passport Size Photo
      • ITR of last 2 years
      • Identity Proof - Passport/ Driving License/ Voter ID/ PAN
      • Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport
      • Income Documents – 6 months payslip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit
      Property documents
      • Registered Sale Deed/ Conveyance/ Lease Deed
      • Past Sale Deeds Chain (each transaction in respect of this property since first allotment
      • Latest House Tax Return/ Receipt
      • Approved Building Plan from Municipal Corporation

      Frequently Asked Questions

      What is SBI's loan against property interest rate?

      SBI offers loan against property at rate of 10.30% with the lowest EMI of Rs. 1,093. If you are currently paying higher interest rate than SBI rate, you can opt for balance transfer of loan to SBI.

      What is the maximum loan tenure I can opt under SBI Property loan?

      SBI offers you a longer tenure of 15 years to repay your loan with a benefit of paying less EMI per month.

      What is the benchmark rate applicable for Mortgage loan?

      The benchmark rate applicable for property loan in SBI is 1 Year MCLR.

      Do I get tax benefit on Loan against property from SBI?

      There are no tax benefits available for loan against property.

      Can I foreclose my Mortgage loan? What are the charges applicable?

      Yes, you can foreclose your loan anytime you want with Nil foreclosure charges.

      Can I transfer my LAP from another bank to SBI?

      Yes, Bank gives you the facility to transfer your existing loan with a hassle free process. Loan balance transfer to SBI offers you to pay lower EMIs and save money.

      Can I club the income of my spouse with mine and apply for joint Property loan?

      Yes, you can club the income of your spouse to increase your loan eligibility if the spouse is co-owner of the property or guarantor of the loan.

      How to increase my eligibility on SBI Mortgage loan?

      If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan. The combination of both of your income will help you in increasing your eligibility to get loan.

      How will interest rate on SBI LAP change in future?
      • Floating interest rate on SBI property loan is linked to its 1 Year MCLR, which is currently 8.55%. So, when SBI offers a loan against property at 10.30%, it applies a 1.75% premium to its MCLR to arrive at this rate
      • When RBI increases rates, the bank may increase its MCLR rate and the applicable interest rate for all existing and new loan against property would increase. When RBI cuts interest rates and the bank reduces the MCLR rate, the benefit of lower rates will have to be passed to both old borrowers and new loan account customers.
      What is SBI mortgage loan processing fees?

      The loan processing fee charged is 1.00% of the total loan amount.

      What is SBI property loan procedure?

      You can apply for a SBI property loan by contacting the bank directly or by approaching them through online marketplaces like myloancare.in. Approaching the bank through an online market place improves the chances of getting best loan rates, low processing fees and special offers in the form of cash backs. Once you approach the bank, they will collect your documents and initiate the loan process which includes checking your CIBIL score, property valuation, technical and legal checks on property, eligibility calculation. The bank will give a decision on your loan based on the evaluation results.

      What security do I need to provide?

      SBI requires registered mortgage of the property against which the bank will provide you loan.

      What are the five things to check before applying for loan against property in SBI ?
      • Property on which you intend to take loan is not a vacant land, has an approved map plan and is in municipal area. You must attach the entire chain of title documents of the property and its approved building plan with the loan application.
      • Your existing EMIs on all loans and credit cards (from SBI and other banks) are no more than 60 - 70% of your net monthly income
      • You have not defaulted on loans or credit card dues to SBI and other banks and all EMI's have been paid. Note that SBI can see record or status of your EMI defaults to all banks and NBFC’s in India and not just to SBI in your CIBIL report. Estimate your CIBIL score for free by using CIBIL score estimate calculator
      • If you are salaried, ensure that you attach your recent salary slips, bank statements and last 3 years' Form 16 with the loan application
      • If you are self employed in your own business or practice, your business must have been in existence for at least three years and last three income tax returns with audited financial must be available
      Are prepayment or foreclosure charges applicable on SBI loan against property?

      You can prepay loan against property (LAP) without any penalty or charges in case:

      • Your loan is at a floating rate of interest and not at a fixed rate. Almost all loans against property are at floating rates and it is unlikely that yours is at a fixed rate of interest
      • The loan is in the name of one or more individual borrowers and none of the applicants and co-applicants is a business entity like a company or a firm or partnership or AOP

      For loans from banks and NBFC's, refer to RBI circulars RBI/ 2013-14/ 582/ DBOD. Dir. BC. No. 110 /13.03.00/ 2013-14 dated May 7, 2014 and RBI/ 2014-15/121/ DNBS(PD). CC. No. 399/ 03.10.42/ 2014-15 dated July 14, 2014 for more details.

      For loans from Housing Finance Companies, refer to NHB circulars NHB(ND)-DRS-Policy-Circular-63-14-15 dated Aug 14, 2014 and NHB-ND-DRS-Policy-Circular-No-66-2014-15 dated Sep 03, 2014 for more details.

      Please contact myloancare at 8448389600 or care@myloancare.in in case you need any assistance or clarification on this subject.

      SBI Loan Against Property Customer Care Number, Email, Application Status, Branches
      City Customer Care Number
      Agra 979-350-2211
      Ahmedabad 972-434-2211
      Ambala 999-637-2211
      Anand 972-434-2211
      Aurangabad 973-001-2211
      Bangalore 973-193-2211
      Bhilai 989-328-2211
      Bhilwara 979-933-2211
      Bhiwadi 973-001-2211
      Bhopal 989-328-2211
      Bhubaneswar Cuttack 977-745-2211
      Bikaner 979-933-2211
      Chandigarh 977-916-2211
      Chennai 979-094-2211
      Cochin 999-539-2211
      Coimbatore 979-191-2211
      Dehradun 976-020-2211
      Delhi 995-880-2211
      Durg 989-328-2211
      Faridabad 995-880-2211
      Gandhinagar 972-434-2211
      Ghaziabad 995-880-2211
      Goa 973-001-2211
      Greater Noida 995-880-2211
      Gurgaon 995-880-2211
      Guwahati 995-705-2211
      Gwalior 989-328-2211
      Hyderabad 995-919-2211
      Indore 989-328-2211
      Jabalpur 989-328-2211
      Jaipur 979-933-2211
      Jalandhar 977-916-2211
      Jodhpur 979-933-2211
      Kanpur 979-350-2211
      Karnal 999-637-2211
      Kolhapur 973-001-2211
      Kolkata 974-842-2211
      Kota 979-933-2211
      Kozhikode 999-539-2211
      Lucknow 979-350-2211
      Ludhiana 977-916-2211
      Madurai 979-191-2211
      Meerut 976-020-2211
      Mehsana 972-434-2211
      Mohali Sas Nagar 977-916-2211
      Mumbai 998-755-2211
      Mussoorie 976-020-2211
      Nagpur 973-001-2211
      Nashik 973-001-2211
      Noida 995-880-2211
      Noida Extn 995-880-2211
      Panipat 999-637-2211
      Patna 995-595-2211
      Pondicherry 979-191-2211
      Pune 973-001-2211
      Raipur 989-328-2211
      Rajkot 972-434-2211
      Ranchi 995-595-2211
      Rohtak 999-637-2211
      Roorkee 976-020-2211
      Salem 979-191-2211
      Shimla 980-509-2211
      Sonepat 999-637-2211
      Surat 972-434-2211
      Trichy 979-191-2211
      Udaipur 979-933-2211
      Vadodara 972-434-2211
      Varanasi 979-350-2211
      Vijaywada 995-919-2211
      Vizag 995-919-2211

      SBI Loan Against Property News - Dec 2018
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