SBI Realty Home Loan

SBI Realty Home Loan, offered by SBI (State Bank of India), is a scheme designed to help you purchase a plot for constructing your dream home. It caters to individuals who aspire to build houses tailored to their needs and preferences. Read further for a comprehensive SBI Realty Home Loan overview covering its features, benefits, interest rates, fees, eligibility criteria, and more.

SBI Realty Home Loan – Highlights

SBI Realty Home Loan – Features and Benefits

• Attractive Interest Rates: SBI Realty Home Loan offers competitive interest rates starting from 7.50% p.a., making it a cost-effective way to finance your plot purchase.
• Loan for Plot Purchase: This loan is for buying a plot for construction, unlike regular home loans meant for purchasing existing properties.
• Separate Loan for Construction: SBI allows you to take out a separate home loan for construction after the plot purchase, enabling you to conveniently manage the financing of both stages.
• Combined Loan Option: Sometimes, you can opt for a combined plot and construction loan, streamlining the financing process. (Note: Verification for this option is recommended directly with SBI)
• Flexible Repayment Tenure: With a repayment tenure of up to 10 years, you can choose a plan that aligns with your financial capabilities.
• No Prepayment Penalty: SBI does not charge for prepaying the loan partially or entirely, allowing you to save on interest if you have surplus funds.
• Spouse/Children’s Income Consideration: To improve your loan eligibility, SBI may consider the income of your spouse or children residing with you, provided their salary accounts are with SBI.

SBI Realty Home Loan Interest Rates

Interest rates for SBI Realty Home Loans are subject to change based on various factors, such as your credit score, loan amount, and prevailing market conditions. However, they typically start from 7.50% p.a. It’s advisable to contact SBI directly for the latest interest rate quotes based on your specific profile.

SBI Realty Home Loan Fees and Charges

SBI Realty Home Loan comes with certain processing fees associated with loan application and processing. The fee amount varies depending on the loan amount you apply for:

• Up to Rs. 25 Lakhs: 0.25% of the loan amount (minimum Rs. 1000)
• Between Rs. 25 Lakhs and Rs. 75 Lakhs: Rs. 6500
• Above Rs. 75 Lakhs: Rs. 10,000

SBI Realty Home Loan – Eligibility Criteria

To be eligible for SBI Realty Home Loan, you need to meet the following criteria:

• Nationality: Indian resident or Non-Resident Indian (NRI)
• Age: Minimum 18 years, Maximum 70 years at loan maturity
• Income: Regular income source with a minimum salary as per SBI norms (which may vary depending on your location and profession)
• Employment Type: Salaried individuals, self-employed professionals, or businessmen
• Credit Score: A good credit history with a healthy CIBIL score (ideally above 750) is preferred for securing a loan with favourable terms.
• Property Documents: Clear ownership documents of the plot you intend to purchase

SBI Realty Home Loan – Documents Required

The application process for SBI Realty Home Loan typically involves submitting the following documents:

• Completed SBI Home Loan application form
• KYC documents: Proof of Identity (Passport/Driving License/Voter ID), Proof of Address (Utility Bills/Rent Agreement), PAN Card
• Income proofs: Salary slips for salaried individuals, Income Tax Returns (ITR) for self-employed individuals/businesses
• Bank account statements for the past 6 months
• Property documents of the plot you intend to purchase

SBI Realty Home Loan EMI Calculator

SBI likely offers an EMI calculator on its website or mobile app. This tool estimates your monthly EMI (Equated Monthly Installment) based on the loan amount, interest rate, and chosen tenure.  

SBI Realty Home Loan Tax Benefits

SBI Realty Home Loans can help you achieve your dream of homeownership while offering potential tax benefits through deductions under the Income Tax Act of India. Here’s a breakdown of the tax exemptions you might be eligible for:

• Interest Deduction (Section 24): Under Section 24, SBI Realty Home Loans allow you to claim a deduction on the interest portion of your EMI payment up to a maximum of Rs. 2 lakhs per financial year. This applies to both self-occupied and rented properties.
• Principal Deduction (Section 80C): Under Section 80C, you can claim a deduction for the principal amount you repay on your home loan, with a maximum limit of Rs. 1.5 lakhs per year. This deduction is combined with other benefits under Section 80C, such as PPF, EPF, and ELSS investments.
• Additional Deduction for First-Time Homebuyers (Section 80EEA): If you’re a first-time homebuyer and your loan amount is up to Rs. 25 lakhs, and the property value doesn’t exceed Rs. 45 lakhs, you can claim an additional deduction of up to Rs. 1.5 lakhs on the interest payment under Section 80EEA.
• Registration and Stamp Duty Deduction: The registration fees and stamp duty paid during property purchase under your SBI Realty Home Loan are also eligible for tax deductions under the Income Tax Act.

SBI Realty Home Loan Terms and Conditions

SBI Realty Home Loans come with specific terms and conditions set by the State Bank of India. Here are some key points to consider:

• Eligibility: Eligibility criteria typically include minimum income, credit score, employment status, and property type.
• Loan Amount: The maximum loan amount offered under SBI Realty Home Loans may vary depending on your income and property value.
• Interest Rates: SBI offers competitive interest rates on home loans, but the specific rate you qualify for will depend on your creditworthiness and loan details.
• Repayment Tenure: SBI Realty Home Loans typically offer a maximum repayment tenure of 20 to 30 years.
• Down Payment: Depending on the loan amount and bank policy, you will be required to make a down payment on the property value, which can range from 10% to 20%.
• Prepayment Charges: SBI may levy prepayment charges if you decide to pay off your loan before the end of the tenure.
• Processing Fees and Other Charges: SBI charges processing fees and other administrative costs associated with your loan application.