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SBI Loan Against Property Eligibility

SBI Loan Against Property Calculator India Sep 2020

Last Updated 22nd Sep 2020

Eligibility Criteria Salaried Self Employed
Age of Eligible Borrower 18 - 70 years 18 - 70 years
Maximum Loan Tenure 15 years 15 years
Eligible Monthly Income ₹ 25,000 ₹ 25,000
  • Current Lowest Loan Against Property Rates are 7.75
  • SBI loan against property is calculated based on your age, income, property value and repayment capacity.
  • Increase your SBI mortgage loan eligibility by adding earning family members, business firms and companies owned by main applicant as co-applicants or by applying for a longer tenure loan

SBI loan against property eligibility based on age

  • Age: SBI considers your age as one of the important parameters to calculate your eligibility of a mortgage loan. To be eligible for availing a loan from SBI, one has to be of atleast 18 years of age. The maximum age for loan from SBI can be 70 years for salaried . SBI eligibility calculator takes age as an input to calculate your maximum loan tenure, loan EMI and hence, your loan amount eligibility. The maximum tenure of loan that you may be eligible based on your current age will be as follows:
Your current age Max tenure for salaried Max tenure for self employed
25 Years 15 Years 15 Years
30 Years 15 Years 15 Years
40 Years 15 Years 15 Years
50 Years 15 Years 15 Years
60 Years 10 Years 10 Years

Use the above quick and easy tool to easily calculate and compare monthly EMI on SBI Loan Against Property.

SBI Mortgage loan eligibility based on income

  • Net Income: The amount of loan you can avail is a function of your net income. SBI typically applies a multiplier of up to 60 times on monthly net income of the borrower to calculate the mortgage loan eligibility. For example, if your net monthly income is ₹ 70,000 and you take a mortgage loan of ₹ 50 Lakh at 8.80% interest rate offered by bank, the maximum loan amount that you will be eligible for (assuming you have no other EMI’s to pay) would be as follows:
    Age Net Monthly Income (₹)
    50,000 75,000 100,000
    25 years 32.42 Lakh 48.63 Lakh 64.84 Lakh
    30 years 32.42 Lakh 48.63 Lakh 64.84 Lakh
    35 years 32.42 Lakh 48.63 Lakh 64.84 Lakh
    40 years 32.42 Lakh 48.63 Lakh 64.84 Lakh
    50 years 32.42 Lakh 48.63 Lakh 64.84 Lakh
    60 years 25.88 Lakh 38.81 Lakh 51.75 Lakh

    You may consider repaying any loans with short tenure and high EMI in order to increase your SBI loan against property eligibility.

  • Nature of Employment: SBI will check whether you are salaried or self employed. It also looks at your years of experience to check for job and income stability. SBI requires minimum income history and job stability of more than 2 years for salaried individuals and of 5 years for self employed individuals.

SBI Loan against property eligibility based on value of property

  • Value of property: SBI does not finance the entire property value. The maximum Loan Against Property Eligibility would depend upon the value of the property. Suppose you intend to take a loan on a property worth ₹ 20 Lakh. The amount of loan you will be eligible for will vary with the nature of property. A residential property worth ₹ 20 Lakh will fetch the highest loan amount of ₹ 13.
    Property Type LTV Property Value Maximum Loan Amount
    Commercial Property 65% ₹ 20 Lakh ₹ 13 Lakh
    Residential Property 65% ₹ 20 Lakh ₹ 13 Lakh
  • Co-applicant: In order to enhance the eligibility of a loan with SBI, one can apply with a co-applicant such as a spouse or parents. This increases the total eligible income for availing a property loan and enhance the amount of eligible loans. As mentioned earlier, every bank has its own set of eligibility criteria. In case of NBFCs, customers can expect higher eligibility
  • Property documents: Your property’s legal documents should be satisfactory and be cleared by the legal team of SBI

SBI property loan eligibility based on CIBIL score

CIBIL Score: The credit history of an individual plays an important role in deciding the amount of the loan. Credit history is basically the credit report of an individual based on credit information recorded by CIBIL for all your past and current loan transactions. Based on your credit score, a bank or any other financial institution decides whether an individual is eligible for a loan or not. Regular payment on secured loans can also increase your CIBIL score. SBI requires a minimum credit score of 650 to be eligible for a property loan.

There are few factors which affect your credit score and in turn impact your chances of getting of loan from SBI.

  • Late payments – If have delayed in repaying your existing or past loans, it negatively affects your CIBIL score and reduces your chances of getting a loan from SBI.
  • High number of unsecured loans – Always keep a balance between secured and unsecured loans. Unsecured loans are riskier and more number of unsecured loans can adversely affect your credit score.
  • Usage of credit limit – Credit card bills and use of credit limit shows your credit behaviour. Frequent usage or withdrawals of large amounts up to the credit card limit reflects a potential financial stress, indiscipline on your part and may adversely impact your credit score.
  • Multiple loan applications – If you apply for loan in multiple banks at one time, it can affect your score negatively and reduce your CIBIL score. In case of application rejection from SBI, improve your credit worthiness to get a good score before putting in an application in another bank.

SBI Mortgage loan eligibility based on FOIR

SBI calculates FOIR (Fixed Obligation to Income Ratio) to estimate the amount of loan against property you can avail. SBI will calculate the percentage of fixed obligations (Rent and EMIs) to your net monthly income. Your fixed obligations to monthly income ratio should not be more than 65% to get a mortgage loan from SBI. Always calculate your eligibility with SBI mortgage loan calculator to estimate your eligible loan amount before applying for a loan to reduce the chances of getting your loan application rejected.

FAQs

What factors determine the eligibility criteria of property loan from SBI?

The factors that determine the eligibility criteria of SBI property loan are:-

  • Age of the applicant
  • Monthly income
  • Existing liabilities
  • CIBIL Score
  • Value of the property to be mortgaged

What should be the minimum net monthly income of the customer to get SBI mortgage loan?

The minimum income for salaried employee to get loan against property should be ₹ 25,000 per month.

What is the minimum and maximum age required for SBI loan against property?

The minimum age of the applicant should be 18 years and maximum should be 70 years for loan against property from SBI.

What is the tenure of SBI property loan?

SBI offers property loan for a tenure upto 15 years. However, longer the loan tenure, higher will be the eligibility.

How much mortgage loan can be availed by the applicant?

An applicant can avail mortgage loan from SBI up to 65% of the market value of the property.

Compare Property Loan Eligibility of All Banks


SBI Loan Against Property News - Sep 2020
  • 2020-09-22 : SBI offers up to 2 years repayment relief for home and retail loans
    State Bank of India announced the option to choose either a moratorium of up to 24 months or reschedule the instalments and extend the tenure by a period equivalent to the moratorium granted, for its retail customers. ​​​The bank is aiming to assist the customers amid the COVID 19 and economic slowdown.
  • 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.
*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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