SBI Home Loan Review: Interest Rates @ 6.95%

SBI Home Loan Review: Interest Rates @ 6.95%

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


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
Promotion: Rates from 6.70% and waiver on processing fee
Interest rates starting from 6.95%
0.05% interest rate discount for women
Multiple options for additional financing
Specially designed loans for all borrowers

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 ProductFeatures
SBI Regular Home Loan
  • For purchase or construction of home, extension and repair/ renovation
SBI Balance Transfer
  • For home loan transfer to SBI from your current lender
SBI NRI Home Loan
  • For Non-Resident Indians (NRI) and Person of Indian Origin (PIO)
SBI Flexipay Home Loan
  • Higher loan amounts for salaried borrowers
  • Pay interest during moratorium, resulting in smaller EMIs that grow larger over time
SBI Privilege Home Loan
  • For government employees
  • Interest concessions and zero processing fees
SBI Shaurya Home Loan
  • For Army and Defence Personnel
  • Interest concessions and zero processing fees
SBI Pre-Approved Home Loan
  • SBI provides sanction of home loan before the finalization of property to help customers negotiate with the builder or seller
SBI Realty Home Loan
  • For the purchase of land or plot
  • A second SBI Realty Home Loan can be used for the construction of house
SBI Home Top Up Loan
  • For additional funding
  • Smart Home Top Up Loan available to borrowers who apply in person
  • YONO Insta Home Top-Up Loan available to pre-selected customers over YONO mobile app
SBI Bridge Home Loan
  • For borrowers who wish to sell their existing home in exchange for an upgraded home
SBI Corporate Home Loan
  • For corporate entities to provide housing to employees
SBI Tribal Plus
  • For borrowers living in Hilly/Tribal areas
  • No mortgage of land, only construction or purchase of home no older than 10 years
SBI Home Loan to Non-Salaried
  • Home loans specially designed for self-employed borrowers
SBI Earnest Money Deposit (EMD)
  • Short term loans for borrowers seeking Government Housing plots and houses
SBI Reverse Mortgage Loan
  • For senior citizens in need of additional source of income
  • SBI makes payments against mortgage or house
SBI Loan Against Property
  • For financing against the value of your property

SBI Home Loan Interest Rates

SBI Home loan standard interest rates start from 7.00%
Based on standard interest rates for home loans. Rates are subject to change.
SBI Home loan standard interest rates start from 7.00%
Based on standard interest rates for home loans. Rates are subject to change.

SBI standard home loan rates are charged between 7.00% and 7.70%, which still brings the lender's rates well below our calculated average home loan rate of 8.00%. Your final interest rate will be determined by many factors, including your CIBIL score, income, tenure, relationship with bank, and employment status. However, as a rule, women borrowers benefit from a 0.05% discount on SBI home loan interest rates.

For a regular home loan, you can opt for a term loan or a Maxgain loan. Under the SBI MaxGain Home Loan option, your loan amount will be sanctioned as an overdraft facility. Although the Maxgain option technically has higher interest rates, you will pay less total interest over time.

Loan AmountTerm Loan RateMaxgain Rate
Up to Rs. 30 lakhs7.00%7.35%
Between Rs. 30 lakhs and Rs. 75 lakhs7.25%7.60%
Above Rs. 75 lakhs7.35%7.70%

Self-employed borrowers will be charged an additional 0.15%, while borrowers with a low CIBIL score, or otherwise risky financial status, will be charged up to an extra 0.20%.

State Bank of India's other home loan products are also competitively priced and some provide an overdraft facility option to reduce total interest paid. You can find SBI rates for other housing products below. However, we advise that you confirm current home loan interest rates before applying for a loan.

Interest Rate Structure
SBI Realty Loans7.70% - 7.90%
SBI Home Top Up7.50% - 9.55%
Insta Home Top UpFrom 8.20%
Smart Home Top Up8.05% - 9.05%
SBI Loan Against Property8.80% - 9.65%
SBI Bridge Loan9.50% - 10.50%
SBI Bridge Loan9.50% - 10.50%
SBI Earnest Money DepositFrom 10.45%
Reverse Mortgage Loan8.05% - 9.05%

SBI Home Loan Eligibility

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

To avail an SBI home loan, you must be between the ages of 18 and 70 years old. Notably, the Privilege Home Loan — designed for government employees — extends the maximum age to 75 years old. These age requirements are especially generous, considering most other lenders enforce an age range of 21 to 65.

NRIs have the same minimum age requirement of 18, but must be no older than 60 year olds to be eligible for an SBI home loan. Regardless of your residence status, SBI borrowers are eligible for a 30 year loan tenure under most home loan schemes. As an exception, SBI Realty Loans allow up to a 10 year loan tenure.

State Bank of India has an abundance of home loan products of which are specially tailored to certain types of borrowers. Please refer to the SBI Housing Product list to find a loan that matches your qualifications and needs.

Read more: Home Loan Eligibility

SBI Home Loan Processing Fee and Other Charges

SBI Home Loan Processing Fee0.40% of loan amount, minimum Rs. 10,000, maximum Rs. 30,000
Privilege Home Loan Processing FeeWaived
Shaurya Home Loan Processing FeeWaived
Prepayment FeeNil.

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. Additionally, SBI promotes no prepayment penalty fees for its home loan products, which is advantageous for borrower who seek to pay down their loan in advance.

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 Calculator

Use a home loan calculator to estimate your EMIs before applying. By inputting your home loan interest rate, loan tenure, and loan amount, you can plan your repayments ahead of time. Click here to use the SBI home loan EMI calculator.

SBI Home Loan EMI Repayment Schedule

Our team of financial analysts calculated an EMI repayment schedule for borrowers, as seen below. This example shows the first 5 years of a 30-year loan tenure.

Stage of TenureEMIInterest PaidPrincipal PaidOutstanding Balance
Year 1₹33,265₹348,391₹50,790₹4,949,210
Year 2₹33,265₹344,719₹54,462₹4,894,747
Year 3₹33,265₹340,782₹58,399₹4,836,348
Year 4₹33,265₹336,561₹62,621₹4,773,727
Year 5₹33,265₹332,034₹67,148₹4,706,579
Based on an Rs. 50 lakh home loan over a 30 year tenure. Interest rate is set at 7.00% per annum, with no processing fee calculated in the outstanding balance.

SBI Home Loan: Apply Online

You can apply for an SBI Home Loan in person or online. For loans like the Smart Home Top Up, you must apply in person to avail benefits like instant approval without documentation.

SBI Home Loan Documents

You will have to submit 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.

Examples of Required Documents

  • Mandatory: Employer Identity Card, completed loan application with 3 passport size photographs
  • Proof of Identity: PAN Card, Passport, Driver's License or Voter ID Card
  • Account Statement: Last 6 months statements for all bank accounts, 1 year loan A/C statements for previous loans
  • Proof of Income (Salaried): 3 months Salary Slips , 2 years' Form 16 or IT Returns
  • Proof of Income (Self-Employed): Proof of business address, 3 years' IT returns (3 years), 3 years Balance Sheet & P&L statements, business license details, TDS Certificate, Certificate of Qualification

You will also be required to submit property-related documents that vary based on your location of residence, as well as your home loan product of choice. Please confirm your document requirements with State Bank of India before applying for a home loan.

SBI Home Loan Customer Care

If you have any queries about the application process or your SBI home loan status, contact SBI customer care through any of the methods below.

Natalia Sanchez-Kumar

Natalia Sanchez-Kumar is a Junior Research Analyst at ValueChampion, specialising in loans in India. She is a History graduate of New York University and has worked in the area of social impact, Future of Work and socio-technological research in the US and India. She has co-authored policy proposals alongside the International Labour Organisation in Sri Lanka and the Maldives, as well as hosted a data privacy conference with Facebook in New Delhi.