You’ve decided to buy a home, and you look forward to the day when you can move in. But before that day comes, there are certain things that come into play. One of them is home loan coverage. That is where a home loan credit score comes into play. And if you’re planning to buy a home, you most likely know what a credit score is and how it affects your chances of getting a loan. But do you know how bank home loans factor into the game? If yes, we have an exciting surprise for you! Read this blog on SBI Home Loan – the best home loan option ideal for those looking to get their foot in the door of home ownership while paying a bit less interest.
What is SBI Home Loan?
SBI Home loan is a financial instrument for non-salaried people who are looking for an affordable home loan option. Sbi home loan is an EMI calculator tool that helps to calculate the amortization details yearly or monthly. The loan amount offered by the bank depends on various factors, including income and eligibility criteria of the borrower.
The interest rate of a Sbi home loan is also determined as per the eligibility criteria of the borrower and the tenure of loan. A top-up loan (overdraft) can be obtained as well with low processing fees. However, non-salaried applicant must be a partner in a partnership firm or proprietor in a proprietorship firm for at least 3 years and have earned net profit in the past 2 years.
What are the benefits of SBI Home Loan?
The interest rate of SBI home loan is one of the lowest in the market. If a borrower avails the loan, it offers a repayment period of up to 30 years. The non-salaried people can avail loan eligibility criteria such as being a proprietor in a proprietorship firm, or a partner in partnership firm, or a director in company/firm, having been an existing borrower for at least 3 years and with a net profit in the past two years. Besides, jointly acquired house properties are also eligible for loan provided the proprietary firm is debt free entity or an existing borrower. So, it is evident that SBI home loan offers many benefits to customers.
How to get the best deal on SBI Home Loan?
SBI home loan eligibility criteria is relatively simple and easy to understand. You must be an Indian or NRI/PIO of 18 years of age or older, with a valid passport of the country you’re applying for home loan. You must also be eligible for a bank loan as per your bank’s eligibility criteria.
The amount of home loan you can avail depends on your income. If you are a salaried individual, you should consider the income eligibility criteria of SBI home loan. However, if you are self-employed, you can avail top-up loan amount of up to Rs 1 lakh with repayment terms of up to 30 years. Additionally, the processing fee of home loan is also low, which makes it easier for everyone to enjoy a home loan easily.
It is important to check existing credit facilities and ensure that any jointly-acquired property is debt-free.
Steps to follow for getting the best deal on SBI Home Loan
There are a number of eligibility criteria which must be complied with before you can apply for a home loan from the State Bank of India (SBI). The eligibility criteria vary depending on the loan amount and interest rate. Here are some of the eligibility criteria to keep in mind:
– Home loans of up to Rs 10 lakh are available for salaried individuals, non-banking non-finance companies, institutes, and co-operative societies.
– Loans of up to Rs 30 lakh are given to individuals who have income of above Rs 20 lakh per annum. However, loans above this amount are given for individuals with an income of over Rs 25 lakh per annum.
– Loans of up to Rs 40 lakh are given for self-employed individuals with an income of above Rs 20 lakh per annum.
– Loans from Rs 20 lakh to Rs 50 lakh are available for individuals who own property.
– Loans between Rs 50 lakh and Rs 1 crore are offered for individuals who have income of above Rs 25 lakh per annum.
The loan amount is also critical for deciding if you qualify for a home loan from SBI or not. If your home value is less than the loan amount, you can still get a home loan as long as you fulfill all other eligibility criteria. However, if your home value exceeds the loan amount, it’d be difficult to qualify as home loan rates become higher in such cases.
You must also ensure that you meet all non-salaried customer requirements while applying for a home loan from SBI. These include being residing in India for at least 12 months in the last two years prior to applying, maintaining an annual income equivalent to at least 2
What are the eligibility criteria for SBI Home Loan?
Sbi home loan eligibility criteria must be met by all applicants, salaried, professionals, self-employed, and business people. The eligibility criteria for non-salaried applicants are as follows:
– Have a firm or company that has been in existence for at of three years, has earned net profit in the last two years, and has regular and standard existing credit facilities
– If the proposed house property is acquired in joint names of the applicant and a proprietary firm, the firm should be existing borrower or debt free
– Applicants must be between 18 and 70 years old, and either an Indian national, NRI, or PIO
The eligibility criteria for salaried applicants is generally similar to those of non-salaried applicants. However, they must have a minimum income of ₹10 lakh per annum. Moreover, they must not own any house property. On top of this, they must earn an income of ₹5 lakh per annum from other sources. If the house property is owned jointly with a proprietary firm, its cost should be at least ₹1 crore. Besides eligibility criteria mentioned above, applicants must also meet other eligibility criteria provided by the bank such as having a bank account with it for at least 6 months.
As we said above, home loans are something that you should definitely need to consider before applying for. If you have ever heard of home loans or home loans in general, you are probably well aware of their benefits and the amount of security they provide to home loan applicants. So, it is clear that home loans are a crucial part of your financial security. And with so much information available on the web about home loans, it is easier than ever for home loan applicants to get the best deal possible. So, go ahead and apply online for SBI Home Loan today!