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 lender and a great option for home financing for individuals living in India. The bank typically charges lower than average interest rates. For example, SBI's home loan balance transfer and top up loan rates are particularly competitive.

Summary of SBI's Home Loans
Lower than average home loan rates
Lowest advertised home loan balance transfer rates
Loans disbursed within 3 to 10 days of approval

Table of Contents

What Makes SBI Home Loans Stand Out to Borrowers?

With nearly a third of the home loan market share, SBI is India's largest personal lender. The state-owned bank consistently offers competitively priced home loan products. We found that its Home Loan Balance Transfer and Home Top-Up Loan products were the most competitive, with rates well below the market average. For this reason, individuals that require a housing loan in order to purchase their new home and those that would like to obtain a lower interest rate by transferring their loan balance to another bank should both consider SBI for their home financing needs.

SBI Regular Home Loan & Balance Transfer of Home Loan Interest Rates

Loan AmountSalaried RatesNon-Salaried Rates
Up to Rs. 30 lakh8.75% - 8.85%8.90% - 9.00%
Rs. 30 lakh - Rs. 75 lakh8.90% - 9.00%9.05% - 9.15%
Greater than Rs. 75. Lakh9.00% - 9.10%9.15% - 9.25%
* updated November 2018, 0.05% discount for women
Loan AmountSalaried RatesNon-Salaried Rates
Up to Rs. 30 lakh8.75% - 8.85%8.90% - 9.00%
Rs. 30 lakh - Rs. 75 lakh8.90% - 9.00%9.05% - 9.15%
Greater than Rs. 75. Lakh9.00% - 9.10%9.15% - 9.25%
* updated November 2018, 0.05% discount for women

In addition to those that are applying for home loans for a new house or flat, current SBI home loan customers 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.

SBI Home Top Up Loan Interest Rates

Loan AmountSalaried RatesNon-Salaried Rates
Rs. 5 lakh - Rs. 20 lakh8.95% - 9.05%9.10% - 9.20%
Rs. 20 lakh - Rs. 1 crore9.15% - 9.25%9.30% - 9.40%
Rs. 1 crore - Rs. 2 crore9.35% - 9.45%9.50% - 9.60%
Rs. 2 crore - Rs. 5 crore9.80% - 9.90%9.95% - 10.05%
Greater than Rs. 5 crore10.00% - 10.10%10.15% - 10.25%
* updated November 2018
Loan AmountSalaried RatesNon-Salaried Rates
Rs. 5 lakh - Rs. 20 lakh8.95% - 9.05%9.10% - 9.20%
Rs. 20 lakh - Rs. 1 crore9.15% - 9.25%9.30% - 9.40%
Rs. 1 crore - Rs. 2 crore9.35% - 9.45%9.50% - 9.60%
Rs. 2 crore - Rs. 5 crore9.80% - 9.90%9.95% - 10.05%
Greater than Rs. 5 crore10.00% - 10.10%10.15% - 10.25%
* updated November 2018

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. The bank offers these loans with tenures of up to 10 years and principals as high as Rs. 15 crore.

SBI Realty Home Loan (Plot) Interest Rates

Loan AmountSalaried RatesNon-Salaried Rates
Up to Rs. 30 lakh9.25%9.35%
Rs. 30 lakh - Rs. 75 lakh9.35% - 9.40%9.45% - 9.50%
Greater than Rs. 75. Lakh9.45% - 9.50%9.55% - 9.60%
* updated November 2018, 0.05% discount for women borrowers
Loan AmountSalaried RatesNon-Salaried Rates
Up to Rs. 30 lakh9.25%9.35%
Rs. 30 lakh - Rs. 75 lakh9.35% - 9.40%9.45% - 9.50%
Greater than Rs. 75. Lakh9.45% - 9.50%9.55% - 9.60%
* updated November 2018, 0.05% discount for women

Who Can Apply: Eligibility Criteria

Consider this if need an affordable home financing product

Maximum Loan Tenure 30 years
Processing Fee Waived

SBI offers loans to Indian residents as well as Non-Resident Indians that are at least 18 years old and no older than 70 years. These individuals are eligible for loans of up to 30 years in tenure. The bank does not advertise its maximum loan amount, though banks tend to offer loan principal's based on prospective borrowers' income level, CIBIL credit score and existing debt obligations.

Other Charges and Fees

There are a number of standard fees associated with SBI's home loan products. Most notably, the bank's processing fee is lower than those of many other lenders. That being said, 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.

FeeAmount
Processing Fee0.35% of loan amount (min. Rs. 2,000, max Rs. 10,000) + applicable taxes (currently waived)
Valuation FeeUnknown
Advocate's FeeUnknown
CERSAI Registration FeeRs. 50 - Rs. 100 + applicable taxes
Early Repayment FeeN/A

How to Apply: Application Process

Individuals interested in applying for home financing from SBI must fill out an application and provide several documents. These documents include proof of identity, residence and income. Additionally, loan applicants are required to provide documentation associated with the property that they 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.

Finally, applicants must submit additional documents if their property is not yet built or under construction. These documents include 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.

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)