State Bank of India (SBI) Home Loan Review: Should You Consider SBI?

State Bank of India (SBI) Home Loan Review: Should You Consider SBI?

SBI offers a range of affordable home financing products.

Good for

  • Borrowers seeking a home loan balance transfer
  • Borrowers in need of home loan top up

Bad for

  • Individuals seeking a fixed rate home loan

Editor's Rating

4.5/5.0

SBI is India's largest mortgage lender and a great home loan option for individuals living in India. With generous eligibility criteria, long loan tenures, and some of the lowest interest rates in the market, SBI home loans should be at the top of your list if you are seeking funding for your new house or property.

Summary of SBI Home Loans
Lower than average home loan rates
Generous eligibility criteria for borrowers
Loans disbursed within 3 to 10 days of approval

Table of Contents

What Makes SBI Home Loans Stand Out to Borrowers?

Controlling 25% of India's home loan market, SBI is India's largest mortgage and home loan lender. The state-owned bank consistently offers competitively priced home loan products.

In addition to low interest rates, SBI offers generous home loan eligibility criteria, allowing borrowers from many different backgrounds and ages to avail a home loan. For this reason, young and older borrowers, alike, that require a housing loan in order to purchase their new home, should consider SBI for their home financing needs.

SBI Home Loan Interest Rates

After the Reserve Bank of India (RBI) ordered India's banks to link their interest rates to an external benchmark, SBI adjusted its home loan interest rates so that borrowers may avail the best home loan option with competitive rates. Below, you will see interest rates for a regular SBI Home Loan and its MaxGain counterpart.

Loan AmountSBI Home LoanSBI MaxGain Home Loan
Up to Rs. 30 lakh7.00%7.35%
Rs. 30 lakh - Rs. 75 lakh7.25%7.60%
Above Rs. 75. Lakh7.35%7.70%
Loan AmountSBI Home LoanSBI MaxGain Home Loan
Up to Rs. 30 lakh7.00%7.35%
Rs. 30 lakh - Rs. 75 lakh7.25%7.60%
Above Rs. 75. Lakh7.35%7.70%
0.05% lower rate discount for women, 0.15% higher rate for self-employed borrowers

Under the SBI MaxGain Home Loan scheme, your loan amount will be sanctioned to an overdraft account. Home Saver options like this allow you to save on interest over time.

Read more: 2020 Home Loan Interest Rates of All Banks

SBI Home Top Up Loan Interest Rates

In addition to those that are applying for home loans for a new house or flat, existing SBI home loan borrowers can obtain competitive rates for top up financing. This type of loan can be useful for current housing loan customers that require a significant amount of funds for other uses such as a wedding or medical procedure.

Below, you will find interest rates on SBI Top Up Loans for both salaried and non-salaried borrowers.

Loan AmountSalaried RatesNon-Salaried Rates
Up to Rs. 20 lakh7.50%7.65%
Rs. 20 lakh - Rs. 1 crore7.70%7.85%
Rs. 1 crore - Rs. 2 crore7.90%8.05%
Rs. 2 crore - Rs. 5 crore8.35%8.50%
Above Rs. 5 crore9.55%9.70%
Loan AmountSalaried RatesNon-Salaried Rates
Up to Rs. 20 lakh7.50%7.65%
Rs. 20 lakh - Rs. 1 crore7.70%7.85%
Rs. 1 crore - Rs. 2 crore7.90%8.05%
Rs. 2 crore - Rs. 5 crore8.35%8.50%
Above Rs. 5 crore9.55%9.70%

SBI will consider your risk grade, based on your CIBIL credit score, job position, and other eligibility criteria, before deciding your final interest rate. If you are considered to have a high risk grade, your interest rate will be calculated with an additional 0.10% or more.

SBI Plot Loan (Realty Home Loan) Interest Rates

Finally, it is worth mentioning that SBI's Realty Home Loan charges lower than average rates for financing the purchase of a plot in order to construct your home. SBI offers these loans with tenures of up to 10 years and principals as high as Rs. 15 crore.

We've calculated SBI Plot Loan interest rates for both salaried and non-salaried borrowers below.

Loan AmountSalaried RatesNon-Salaried Rates
Up to Rs. 30 lakh7.70%7.75%
Rs. 30 lakh - Rs. 75 lakh7.80%7.85%
Above Rs. 75. Lakh7.90%7.95%
Loan AmountSalaried RatesNon-Salaried Rates
Up to Rs. 30 lakh7.70%7.75%
Rs. 30 lakh - Rs. 75 lakh7.80%7.85%
Above Rs. 75. Lakh7.90%7.95%
0.05% discount for women borrowers

Like other SBI Home Loans, the final interest rate on your SBI Realty loan will be determined by your eligibility. If you have a low CIBIL credit score or are self-employed, you can expect an additional 0.10% added to the interest rates seen here.

SBI Home Loan Eligibility Criteria

Consider this if need an affordable home financing product

Maximum Loan Tenure 30 years
Processing Fee 0.40% of loan amount (min of Rs. 10,000 and max of Rs. 30,000) + GST

SBI Home Loans have unique eligibility criteria which are much more generous with minimum and maximum age than many other banks.

To avail an SBI home loan, you must be at least 18 years old. Older borrowers benefit, as well, considering the maximum age to avail a regular SBI home loan is 70 years old. NRIs have the same minimum age requirement, but must be no older than 60 year olds to be eligible for an SBI home loan.

Whether or not you are a resident Indian, you are eligible for a 30 year loan tenure under most SBI loan schemes. As an exception, SBI Plot Loans allow up to a 10 year loan tenure.

SBI offers many home loans to defence, military and government borrowers, as well. You will find that the Privilege Home Loan is especially beneficial for government borrowers, as it extends the maximum borrower age to 75 years old.

Read more: Home Loan Eligibility: Compare Eligibility Criteria by Bank

SBI Home Loan Processing Fees and Other Charges

There are a number of standard fees associated with SBI home loan products. Most notably, the bank's processing fee is lower than those of many other lenders at just 0.40% of the total loan amount.

FeeAmount
SBI Home Loan Processing Fee0.40% of loan amount (min. Rs. 10,000, max Rs. 30,000) + applicable taxes
Privilege Home Loan Processing FeeWaived
CERSAI Registration FeeRs. 50 - Rs. 100 + applicable taxes
Prepayment Penalty FeeNone on home loans with floating interest rates.

We strongly recommend that you carefully review each bank's fees when comparing home loans in order to make your loan as affordable as possible.

SBI Home Loan Application Process: How to Apply

Individuals interested in availing an SBI home loan have the option of applying online for instant approval. You will have to submit required documents for proof of income and property validation. Further, you should have your KYC (Know Your Customer) documents ready for proof of identity and residence.

See below to understand which required documents are needed to determine your home loan eligibility.

Required Documents for SBI Home Loan Application

  • Employer Identity Card
  • 3 Passport size photographs
  • Proof of Identity: PAN, Passport, Driver’s License or Voter ID card
  • Proof of Residence: Copy of utility bill or of Passport, Driving License or Aadhar Card
  • Payment Receipts or bank A/C statement (payments to builder/seller)
  • Proof of Income (Salaried): Salary Slip/Certificate, Form 16/IT Returns (2 years)
  • Proof of Income (Non-Salaried): Proof of business address, IT returns (3 years) Balance Sheet & Profit & Loss A/C (3 years), business license details, TDS certificate, Certificate of Qualification
  • Account Statements: Bank Account (6 months), A/C statement (1 year)

You will be required to provide documentation associated with the property that you plan to purchase. These include documents proving permission for construction, sale agreement documents, occupancy certificates, share certificate (Maharashtra only), maintenance bill, electricity bill, and the property tax receipt.

Lastly, if your property is not yet built or still under construction, you will have to submit additional documents like an approved plan and registered development agreement from the builder, conveyance deed and payment receipts or bank A/C statement showing all the payments made to the builder or property seller.

William Hofmann

William is a Product Manager at ValueChampion, focusing on banking and SMEs. He previously was an Economic Consultant at Industrial Economics Inc.