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SBI Loan Against Property

SBI Mortgage Loan Interest Rates

Last Updated 17th Sep 2020

SBI offers Loan Against Property starting at interest rate of 8.80% which is one of the best mortgage loan rates in India. Check Best Offers

Processing Fee Upto 1.00%
Max Tenure 15 years
Lowest EMI ₹ 1,002 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

SBI Loan Against Property LAP 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 LAP
SBI Mortgage Loan Interest Rates
SBI Loan Against Property Floating 8.80% - 9.30%
SBI Loan Against Property Floating
Loan AmountRate
Upto ₹ 25 Lakh 8.80%
₹ 25 Lakh - ₹ 1 Cr8.80%
₹ 1 Cr - ₹ 2 Cr9.30%
Above ₹ 2 Cr 9.30%

SBI Loan Against Property Rate

  • Loan amount: Property loan rates in SBI depends upon the loan amount you apply for. You can get minimum loan of ₹ 25 Lakh from SBI.
  • Your Net Monthly Income: Income helps you in identifying your rate of interest. Higher the income, higher will be your repayment capacity which will increase your eligibility for higher loan amount.
  • Type of loan opted for: SBI 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 ₹ 25,000
Loan Amount ₹ 25 Lakh to ₹ 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 from the age of 18 years. Any person taking loan at the age of 18, 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 ₹ 25 Lakh to ₹ 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 compare 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% of the total loan amount.
  • Other Charges - Bank also charges technical and legal charges which are explained to the customer during the loan process.
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 Against 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 Mortgage of Immovable Property

Description:
  • Loan against mortgage of immovable property can be availed for personal needs for a repayment period up to 180 months.
  • You can take this loan for any personal financial needs such as a wedding, travel, health expenses etc.
Who is Eligible?
  • To avail this loan, you should have a monthly income of Rs 25000.
  • You can avail loan against mortgage of immovable property for a minimum loan amount of Rs. 10 Lakhs and can get upto Rs. 5 crores subject to location of the property.
  • Self-employed and salaried professionals who are IT assesses can avail this loan.
  • This loan can also be taken by Non-Resident Indians (NRIs) who owns residential property in his/her name or the name of spouse/children/parents/siblings.

State Bank Rent Plus

Description:
  • Rent Plus is a loan product for property owners who are expecting rental income from their property.
  • The property owners of residential or commercial property can avail a loan for personal or business needs.
Who is Eligible?
  • To avail this loan, individuals should have a residential or commercial property which they have rented out or will rent out to banks, MNC etc.
  • Property must be located in urban/semi-urban/metro/rural areas.
  • You can avail Rent plus loan for a tenure of 10 years.
  • Rent plus loan can be taken by property owners of residential or commercial property.

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 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

      FAQs

      What is SBIs loan against property interest rate?

      SBI offers loan against property at rate of 8.80% with the lowest EMI of ₹ 1,002. If you are currently paying higher interest rate than SBI rate, you can opt for balance transfer of loan to SBI.

      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.

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

      There are no tax benefits available for loan against property.

      How will interest rate on SBI LAP change in future?

      • SBI offers RBI Repo Rate linked mortgage loan which starts at 8.80%. Current Repo Rate of RBI is 4.00%. Bank adds a mark up on RBI’s repo rate which is called SBI Repo Rate Linked Lending Rate (RLLR). RLLR can change with change in Repo Rate. An additional spread is applied on RLLR which remains the same throughout the tenure. Bank applies a premium 4.8% to the Repo Rate to arrive at this rate.
      • When RBI increases rates, the bank may increase its Repo Rate linked property loan rates by the same basis points for all existing and new mortgage loans. When RBI cuts interest rates, the SBI loan against property interest rates will reduce the interest rates by the same basis points, which will be effective from 1st day of the following month.

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

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

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

      SBI offers maximum tenure of 15 years to repay your loan.

      What is the benchmark rate applicable for Mortgage loan?

      The benchmark rate applicable for property loan in SBI is RLLR

      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.

      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. 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 total 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 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, 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

      SBI Loan Against Property Reviews 3.5/5  by 1 customers
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      SBI Loan Against Property Availed in Feb-17

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      SBI Loan Against Property News - Sep 2020
      • 2020-09-11 : State Bank of India targets 3x growth in retail, MSME gold loans
        SBI is targeting 3x growth in retail loans which includes home, personal, car, two-wheeler and gold loans along with MSME loans. The bank has planned to use YONO, its digital banking platform, to cut down on response time and scale-up activity.
      • 2020-09-11 : SBI to launch online application window for retail recasts
        SBI is planning to launch a portal on its website to enable its customers to apply for the restructuring of loans. Loans include retail loans like home, personal, gold, two-wheeler, and two-wheeler along with business loans. The portal is set for a September-15 launch; it will allow borrowers to ascertain their eligibility for recast in two to three days. SBI adds a security feature to its debit cum ATM cards
      • 2020-08-06 : SBI reports Q1FY21 net profit of Rs. 4776.50 crore
        State Bank of India reported a net profit of Rs.4776.50 crores for the period ended June 30, 2020, as against a net profit of Rs.6909.95 crores for the period ended March 31, 2020. The Bank posted a total income of Rs.87984.33 crores backed by retail loans like home, personal, car, two-wheeler, and gold loan along with the business and mudra loans. Further, the bank total deposits which include FD, RD, current and savings account grew at 15.96 per cent YoY.
      • 2020-05-01 : SBI revised the rates of loan against property
        State Bank of India changed the rate of loan against property, with effect from 1 May 2020. The LAP rate for salaried and non- salaried for the loan amount upto Rs. 1 crore if the residential property is self- occupied is 9.20%. Further, it is 9.70% if the loan amount is above Rs. 1 crore to up to Rs. 2 crores.
      • 2020-03-31 : SBI likely to offer 3-month moratorium to loan borrowers
        To help its customers cope up with the economic crisis during the loan period, SBI may soon implement a three-month moratorium on loan repayments. Thereby, customers will be relieved of loan repayments schedules during this period. However, the bank will also offer an opt-out facility for customers, who wish to continue making repayments as per their affordability. This applies to all loans like personal loans, loans against property and the MSME loans, amongst others.
      *Terms and conditions apply. Credit at sole discretion of lender subject to credit appraisal, eligibility check, rates, charges and terms. Information displayed is indicative and from collected from public sources. Read More
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