SBI Home Loan Interest Rates

Highlights On SBI Home Loan Interest Rate

SBI offers home loans with attractive interest rates that vary based on loan amount, tenure, and applicant profile. The bank’s home loan rates are directly influenced by the Repo Linked Lending Rate (RLLR), ensuring alignment with market trends.

Feature	Details
Interest Rate	Starting from 8.25% p.a.*
Loan Tenure	Up to 30 years
Processing Fee	0.35% of the loan amount plus GST
Loan Amount	Up to 90% of the property cost
Benchmark Rate	RLLR-based rates
Prepayment Charges	NIL for floating-rate loans

State Bank Of India Home Loan Interest Rates For Salaried Vs. Self-Employed Individuals

SBI offers competitive interest rates for both salaried and self-employed individuals. While salaried individuals often benefit from slightly lower rates due to stable income sources, self-employed applicants are assessed based on their business stability and financial records. A strong credit score and consistent financial history can help self-employed individuals secure favourable rates. SBI evaluates income consistency, creditworthiness, and repayment ability before finalising the applicable home loan interest rate.

Applicant Type	Loan Amount	Interest Rate Range
Salaried Women	Up to ₹30 lakh	8.25% – 8.35%
	₹30 lakh – ₹75 lakh	8.50% – 8.60%
	Above ₹75 lakh	8.60% – 8.70%
Self-Employed Women	Up to ₹30 lakh	8.40% – 8.50%
	₹30 lakh – ₹75 lakh	8.65% – 8.75%
	Above ₹75 lakh	8.75% – 8.85%
Salaried Men	Up to ₹30 lakh	8.30% – 8.40%
	₹30 lakh – ₹75 lakh	8.55% – 8.65%
	Above ₹75 lakh	8.65% – 8.75%
Self-Employed Men	Up to ₹30 lakh	8.45% – 8.55%
	₹30 lakh – ₹75 lakh	8.70% – 8.80%
	Above ₹75 lakh	8.80% – 8.90%

State Bank Of India Home Loan Interest Rates For Women

SBI promotes homeownership among women by offering concessional interest rates. Women applicants generally receive a concession of 0.05% compared to standard rates. This initiative supports financial inclusion and encourages women to invest in property. The lower interest rate translates to reduced EMIs, making home loans more affordable. Women borrowers should also check for additional benefits or special schemes introduced by SBI from time to time.

Loan Amount	Interest Rate for Women (p.a.)
Up to ₹30 lakh	8.25% – 8.35%
₹30 lakh – ₹75 lakh	8.50% – 8.60%
Above ₹75 lakh	8.60% – 8.70%

SBI Home Loan Interest Rates – Scheme Wise

State Bank of India (SBI) provides different home loan options to meet the needs of various borrowers. These include loans for salaried individuals, self-employed professionals, NRIs, government employees, and defence personnel. Some loans offer additional benefits, such as lower interest rates or flexible repayment options. The table below lists SBI’s home loan schemes and their interest rates.

Home Loan Scheme	Interest Rate (p.a.)
Regular Home Loan	8.50% – 9.65%
Flexipay Home Loan	8.70% – 9.85%
NRI Home Loan	8.70% – 9.85%
Privilege Home Loan	8.70% – 9.85%
Shaurya Home Loan	8.70% – 9.85%
Tribal Plus Home Loan	8.60% – 9.55%
Realty Home Loan	9.45% – 9.85%
Top-Up Loan	8.80% – 11.30%
Home Loan Maxgain (Overdraft)	8.70% – 9.85%
YONO Insta Home Top-Up Loan	9.35%

How To Calculate The Effective Interest Rate On A State Bank Of India Home Loan?

The effective interest rate on an SBI home loan depends on multiple factors, including the base rate, applicable mark-ups, and discounts. Borrowers should consider their credit score, loan tenure, and employment status to estimate the actual rate they will be charged. Below is a step-by-step guide to calculating the effective interest rate:

Steps to Calculate the Effective Interest Rate:

• Identify the Base Rate : SBI follows the Repo Linked Lending Rate (RLLR), which is influenced by RBI’s monetary policies.
• Check the Applicable Spread or Mark-up : SBI adds a markup based on the loan amount, borrower profile, and tenure.
• Account for Concessions : Women borrowers, government employees, and defence personnel may receive interest rate concessions.

Final Interest Rate Calculation

• Formula:
  Effective Interest Rate = Base Rate + Mark-up – Concessions

For example, if the RLLR is 6.50%, and SBI applies a 1.75% mark-up for a particular borrower while offering a 0.05% concession for women, the effective interest rate would be:

6.50% + 1.75% – 0.05% = 8.20% per annum

Borrowers can also use SBI home loan EMI calculator on the website to estimate their EMI based on loan tenure, amount, and applicable interest rate.

List Of Factors That Affect State Bank Of India Home Loan Interest Rate And EMI

The interest rate and EMI (Equated Monthly Instalment) of an SBI home loan depend on several key factors. These factors determine the overall cost of borrowing and influence how much a borrower pays over the loan tenure.

1. Credit Score

• A higher credit score (750 and above) improves loan eligibility and may result in lower interest rates.
• A lower credit score can lead to higher interest rates or loan rejection.

2. Loan Amount

• SBI offers different interest rates based on the loan amount slab.
• Generally, higher loan amounts attract slightly higher interest rates.

3. Loan Tenure

• A longer tenure (up to 30 years) results in lower EMIs but increases the total interest paid.
• A shorter tenure leads to higher EMIs but reduces the overall interest burden.

4. Type of Applicant (Salaried vs. Self-Employed)

• Salaried individuals generally get lower interest rates due to stable income.
• Self-employed applicants may face slightly higher rates as their income can be irregular.

5. Type of Home Loan Scheme

• SBI offers different home loan schemes with varying interest rates: Regular Home Loan, Flexipay, NRI Home Loan, and Shaurya Home Loan.
• Special schemes for women and defence personnel offer additional benefits.

6. Market Conditions and Repo Rate

• SBI’s home loan interest rates are linked to the RBI’s Repo Linked Lending Rate (RLLR).
• If the RBI cuts the repo rate, SBI home loan interest rates may decrease, reducing EMI.

7. Employment and Income Stability

• Borrowers with stable jobs in reputed companies or government sectors may get better loan terms.
• Higher-income levels can increase loan eligibility and help secure lower interest rates.

8. Loan-to-Value (LTV) Ratio

• The LTV ratio determines how much of the property’s value SBI finances.
• If a borrower makes a higher down payment, the loan amount is lower, which can result in better interest rates.

9. Property Location and Condition

• Properties in prime locations may attract better interest rates.
• If the property is newly constructed and in a well-developed area, banks consider it lower risk.

10. Existing Relationship with SBI

• Existing SBI customers (having salary accounts or previous loans) may get preferential interest rates.
• Borrowers with a good repayment history may also receive pre-approved home loan offers.

Impact On State Bank Of India Home Loan Emi Calculations After The Repo Rate Cut By RBI On February 7, 2025

On February 7, 2025, the Reserve Bank of India (RBI) reduced the repo rate by 25 basis points (bps) to 6.25%. This reduction typically decreases the cost of borrowing for banks, including the State Bank of India (SBI). Consequently, SBI announced a 25 bps reduction in its home loan interest rates, effective February 15, 2025. 

Understanding the Impact on EMIs:

To illustrate the effect of this rate cut on Equated Monthly Instalments (EMIs), let’s consider a home loan of ₹50 lakh with two different tenures: 10 years and 20 years.​

1. For a 10-Year Loan Tenure:

Before the Rate Cut	Interest Rate: 8.50% per annum​ EMI: ₹62,137​
After the Rate Cut	Interest Rate: 8.25% per annum​ EMI: ₹61,352​

Monthly EMI Reduction: ₹785​

2. For a 20-Year Loan Tenure:

Before the Rate Cut	Interest Rate: 8.50% per annum​ EMI: ₹43,391​
After the Rate Cut	Interest Rate: 8.25% per annum​ EMI: ₹42,822​

Monthly EMI Reduction: ₹569​

Summary of EMI Changes:

Loan Tenure	Interest Rate Before	EMI Before	Interest Rate After	EMI After	Monthly EMI Reduction
10 Years	8.50%	₹62,137	8.25%	₹61,352	₹785
20 Years	8.50%	₹43,391	8.25%	₹42,822	₹569

How To Get The Best Interest Rate On State Bank Of India Housing Loan?

Securing the lowest possible interest rate on an SBI home loan requires careful financial planning and an understanding the factors influencing loan pricing. Here are some effective ways to get the best interest rate:

1. Maintain a High Credit Score

• A credit score of 750 or above improves loan eligibility and helps secure lower interest rates.
• Regularly check your CIBIL score and resolve any discrepancies.
• Pay credit card bills and existing loan EMIs on time to maintain a good credit history.

2. Compare SBI Home Loan Schemes

• SBI offers multiple home loan schemes, such as Regular, Flexipay, Privilege, Shaurya, and NRI Home Loans.
• Each scheme has different interest rates and benefits, so choose the one that suits your financial profile.

3. Opt for a Shorter Loan Tenure

• While longer tenures (20-30 years) reduce monthly EMIs, they increase the overall interest paid.
• A shorter tenure (10-15 years) can help reduce the total interest burden.

4. Choose a Floating Interest Rate

• Floating interest rates fluctuate based on the RBI’s repo rate changes.
• If market conditions indicate a rate drop, a floating rate can help lower EMIs over time.

5. Apply for a Joint Home Loan

• A joint loan with a co-applicant (spouse or parent) can increase eligibility and improve the chances of a lower interest rate.
• Women co-applicants often get 0.05% lower interest rates under SBI’s schemes.

6. Check for Special Discounts and Offers

• SBI frequently introduces seasonal offers with reduced processing fees or interest rate discounts.
• Some professions, such as government employees, defence personnel, and women borrowers, get preferential rates.

7. Maintain a Strong Banking Relationship with SBI

• Existing SBI customers (salary account holders, previous borrowers) may receive pre-approved home loan offers with better rates.
• A long-term banking relationship can also help negotiate favourable terms.

8. Make a Higher Down Payment

• A lower Loan-to-Value (LTV) ratio can lead to better interest rates.
• Increase the down payment to reduce the loan amount and improve loan terms.

State Bank Of India Home Loan Interest Rates Of Last 10 Years

​Understanding the historical trends of State Bank of India’s (SBI) home loan interest rates over the past decade provides valuable insights for prospective borrowers. SBI’s home loan rates are influenced by various factors, including the Reserve Bank of India’s (RBI) monetary policies, economic conditions, and internal benchmarks like the Marginal Cost of Funds-based Lending Rate (MCLR).

Year	Interest Rate Range (%)
2025	8.50 – 9.65
2024	8.65 – 8.95
2023	8.10 – 8.55
2022	7.55 – 8.00
2021	6.70 – 7.55
2020	7.40 – 8.15
2019	8.05 – 8.75
2018	8.45 – 8.95
2017	8.65 – 9.10
2016	9.30 – 9.70
2015	9.70 – 9.85