State Bank of India mortgage loans are multipurpose loans which can be used to meet any immediate financial requirement. This loan can be used for personal use provided it is not invested in the capital market. Using this loan amount towards speculation on real estate is also not permitted.
SBI Mortgage Loan Eligibility Criteria
Individuals who wish to apply for a State Bank of India mortgage loan need to satisfy the following basic criteria.
- Age – A borrower should not be over the age of 60 years when applying for a loan.
- Income – An applicant should have a minimum net monthly income of Rs 25,000 if he/she is salaried. A net annual income of Rs 3 lakhs is required for others.
- Credit score – An applicant should have a decent credit score.
- Property ownership – An applicant should be the owner of the property he/she intends to mortgage.
- EMI/NMI Ratio – An applicant should have an EMI/NMI ratio which is less than or equal to 50%.
- Third party loans – Third party loans can be availed only if the third party agrees to be a guarantor for a loan.
Documents Required for SBI Mortgage Loan
Individuals who wish to avail a State Bank of India mortgage loan should provide the following documents.
- Property documents – Individuals who wish to avail this loan will need to provide the documents of the property they wish to mortgage.
- Income Tax details – An applicant should provide information about his income, including income tax return details. Proof of income might also be required in certain cases.
- Bank account details
- Passport size photographs
- Valid ID proof
Features and Benefits of SBI Mortgage Loan
Some of the features and benefits of State Bank of India mortgage loans are mentioned below.
- High loan amount – Individuals can get loans ranging from Rs 25,000 to Rs 2 crore, depending on the value of their property.
- High margin – Loans up to 40% of the property value can be availed.
- Simple – Obtaining a mortgage loan is simple and hassle free, with minimum documentation.
- Competitive interest – This loan can be availed at attractive and competitive interest rates.
- Flexible repayment – A borrower can repay the loan through flexible EMIs, with a maximum repayment period of 120 months.
- Prepayment – A borrower can choose to prepay the loan and no prepayment fee will be levied.
State Bank of India (SBI) Mortgage Loan Interest Rate
Interest rates charged by State Bank of India on its mortgage loans are some of the most competitive rates in the market today. The current interest rate depends on the base rate, which stands at 9.85% per annum (as of 10/04/2015). Present interest rates on mortgage loans stand at 12.50% per annum (as of November 2015).
Note – Interest rates charged by State Bank of India are subject to change at their sole discretion, without any prior intimation.
Fees and charges of SBI Mortgage Loan
State Bank of India charges a processing fee equivalent to 1.01% of the loan amount, subject to a maximum of Rs 50,933. This fee includes the service tax applicable. The bank does not charge any prepayment charges for this loan.
