Buying a home is undoubtedly one of the biggest financial decisions you will make. Choosing the right loan amount, interest rate, and loan term can have a huge impact on your overall home ownership experience. Whether you’re a first-time home buyer or looking to expand your loan, there are myriad factors that determine the loan type, such as credit score, personal goals and needs, or financial stability.
If you’re looking to take out a home loan from SBI Regular Home Loans, this blog will help you understand how your loan might work and ensure maximum savings for you. Let’s begin!
SBI Regular Home Loan Benefits
The bank offers a home loan scheme with an interest rate of 8.85% p.a. under its ‘Retail Home Loan’ scheme and home loan eligibility is restricted to individuals aged between 18-70 years of age. The personal loan insurance policy offered by the bank helps borrowers protect themselves from the loan in case of incapacity, such as death, critical illness, permanent disability or unemployment. The interest rate on home loans under the bank’s regular schemes has been revised, with rates beginning at 8.98% p.a for loans up to Rs 10 lakhs and ending at 9.95% p.a for loans of above Rs 10 lakhs
With SBI Home Loan scheme comes zero charges on pre-payments and it is available for applicants aged between 18-70 years of age. Additionally, the EMI calculator that is provided by the bank can help borrowers calculate their repayment details on a yearly or monthly basis. Thus, customers have an easy time choosing a personal loan scheme from Sbi Bank which suits their needs and budget best.
How to Maximize Your Home Loan Savings
You can save on your home loan by looking into balance transfer loans. These loans allow you to transfer the amount owing on another loan or credit card to your home loan account and thus reduce the interest rate. Other ways to save on home loan interest are by researching NRI home loans. These loans are specially designed for non-resident Indians who want to buy a home in India. They offer competitive rates and interest rates, making them an attractive option for those looking to finance their home purchase. In addition, loan against property is another way to save on interest rates. This is a type of loan where you use the value of your home as security for a loan and pay interest only on the amount that exceeds the value of your home.
Also, consider saving on interest rates by utilizing loan takeover options. This is a type of loan where you take over a portion of a borrower’s existing home loan and pay off the remaining amount at a predetermined rate of interest. Thus, you can make savings on your interest rates without sacrificing convenience or affordability.
SBI Regular Home Loan Amount and Term
SBI offers a range of home loans for home financing, which includes regular home loan amount between Rs 10 lakh and Rs 1 crore with interest rate of 8.85% to 9.65% p.a., processing fee of 0.35%.
The loan tenure for SBI Regular Home Loan is up to 30 years and the loan amount can go up to 90% of the property value, subject to eligibility criteria as per bank’s norms.
SBI Regular Home Loan eligibility criteria is simple – you must be an Indian citizen or a legal entity registered in India (except NRIs), should have a residential property as security and should be above 18 years of age at the time of loan crediting.
Further, you need to have an income from salaried or self-employment or business, whichever is higher, with a valid bank account in India.
SBI Regular Home Loan Costs
If you are planning to purchase a home in the future, you may consider the Home loan offered by State Bank of India (SBI). Sbi home loan offers different repayment options with varying interest rates and loan amount.
The interest rate on the loan starts from 8.05% p.a. and goes up to 13.25%. Loan amount is based on property value, credit score, tenure and other eligibility factors. The processing fee is 0.35% of the loan amount and pre-payment / foreclosure charges may apply.
Apart from this, loan insurance and personal loan insurance are also available for personal loans of up to Rs 1 lakh (Backs Plus) and Rs 2 lakh (Max HP). These products help borrowers protect themselves against loan defaults, if they were unable to repay the loans or found themselves unable to take on additional debt in an economic downturn.
What are some common concerns that home loan borrowers have?
Some of the most common concerns that home loan borrowers have are:
1. Down Payment: Home loan borrowers need to pay down payment to block the sale of the property.
2. Interest Rate: Home loan applicants need to consider whether to choose a fixed or floating rate of interest.
3. Loan Amount: The loan amount may vary depending on a borrower’s eligibility and their income source.
4. Transferring Loans: Existing home loan borrowers may want to transfer their loan to another bank or HFC.
5. Risk: Banks may offer a higher interest rate due to the risk of not being able to repay the loan.
What types of information should I provide to my bank when applying for a home loan?
When applying for a home loan, you’ll need to provide your bank with a few documents. These include:
1. Property registration documents: This includes your property deed, proof of ownership, or rental contract.
2. Six months’ bank statements: Shows your current income and spending
3. Identification and residence proof: This could include a driver’s license, passport, or utility bill.
4. Income tax returns for the last 3 years: You’ll need to provide copies of your tax returns to prove that you’re able to repay the loan.
5. Loan application form: You can apply online or offline, depending on the bank’s preference.
6. Finally, make sure to keep all of the aforementioned documents handy when submitting your loan application.
What are the key steps that I need to take when arranging my home loan?
There are a few key steps that you need to take when arranging your home loan. Here is a list of them:
1. Determine your eligibility for a home loan. This will involve answering some questions about your income, assets, and other personal information.
2. Get pre-approved to confidently negotiate with builders or sellers. This will help the bank to know the amount of money you’re willing to put down as well as your financial stability in case of any unforeseen problems.
3. Receive a call back from the bank’s representative. The representative will walk you through the entire home loan process and answer any of your questions.
4. Compare different loan offerings to choose the best suited to your needs. Make sure to consider interest rates, loan terms, and other additional fees and charges associated with home loans.
5. Understand and be aware of home loan scams that exist out there, especially during these times of uncertainties in the market. Stick to reliable and well-known home loan providers to avoid any unpleasant surprises down the road.
Home loans are a personal decision, therefore it is essential to understand the loan benefits, eligibility criteria, and home loan interest rates of each bank before applying for a home loan. With this in mind, you can better plan your home loan eligibility and reduce the stress of home loan application by understanding the home loan rate scenario. For a personalized home loan comparison and lending experience, visit our website or call us today.
