Are you going to take a home loan from India’s well-known lender i.e. SBI then you should first know that what SBI offers on home loans? Hence, to give you such information we are here to share all the important terms that you should check in before taking any decision.
So, this article will contain all the necessary information regarding SBI home loans. Here we have discussed all the current trends of interest rates on home loans that SBI offers. Hence, you should read all the lines very carefully.
The current interest rate of SBI India Home in August 2021 begins at 6.7% per annum for a maximum duration of 30 years. Its housing loans have no processing fees.
On 31st July 2021, India’s largest lender known as SBI (State Bank of India), announced that the processing fee will be exempted on home loans as part of its Monsoon Dhamaka Offer. This offer is given in order to encourage home buyers. The Monsoon Dhamaka Offer from SBI will be valid till 31 August 2021.
SBI home loan interest rate 2021
Considering interest rates on SBI home loans start at just 6.70 percent, there couldn’t be a great time than this to purchase your own house,” the bank officials said in a press release.
The annual rate of interest on SBI home loans is currently 6.70 percent. However, borrowers will be offered the best rate of interest based on their credit profile and a range of other factors.
|Net Amount for Loan||SBI Repo and Home Loan Rate (in %)||Rate of Interest For Female Borrower|
|Upto ₹ 30 Lakh||6.70||6.70|
|₹ 31 to ₹ 75 Lakh||6.95||6.90|
|₹ 76 Lakh to ₹ 1 Cr||7.05||7.00|
|More than ₹ 1 Cr||7.05||7.00|
If someone applies for a home loan with SBI’s YONO app, they will get a five-basis-point rate reduction further.
(One percentage point is equal to 100 basis points.)
SBI home loan calculator
Using an SBI home loan calculator, anyone can evaluate their SBI housing loan EMI. The SBI home loan calculator is a virtual tool that uses a mathematical algorithm to provide precise results with minimal effort.
Enter different loan amounts and tenures at the eligible interest rate into the SBI Home Loan EMI calculator to calculate the home loan EMI. The table below shows the SBI Home Loan calculation for various loan amounts and years at the lowest interest rate of 6.70 percent.
In this case, if you believe you can manage to spend an EMI within your budget, a 15-year or 30-year loan may be the best SBI Home loan option for you.
Home loan from SBI a t interest rate of 6.70 percent, EMI is calculated for various loan terms.
|Amount of Loan Taken (in Rs.)||For 15 years||For 20 years||For 30 years|
|₹ 1 Crore||₹ 88,214||₹ 75,739||₹ 64,528|
|₹ 75 Lacs||₹ 66,160||₹ 56,805||₹ 48,396|
|₹ 50 Lacs||₹ 44,107||₹ 37,870||₹ 32,264|
|₹ 25 Lacs||₹ 22,053||₹ 18,935||₹ 16,132|
The EMI is calculated by the SBI Home Loan Calculator using the formula below.
In the formula above,
P is the loan amount. SBI home loans are available in amounts ranging from Rs. 25,00,000 to Rs. 7,00,00,000
SBI home loans are available in amounts ranging from Rs. 25,00,000 to Rs. 7,00,00,000
n denotes the length of service in months. i.e. tenure. The maximum home loan tenure for SBI is 360 months.
SBI lending rate
The MCLR is defined as the bank’s benchmarked minimum rate of interest below which it cannot lend to customers.
From July 10, 2020, the SBI has revised the MCLR i.e. Marginal Cost of Funds based on Lending Rate.
For loans short-term, the Bank has lowered its lending rates i.e. MCLR by 5 to 10 bps. The new rates will take effect on July 10, 2020.
While the MCLR rate of 1 year remains at 7.00 percent per annum (following the rate cut on June 10, 2020), the 1-month, 2-month, and 3-month rates have all seen rate cuts.
SBI’s current MCLR rate ranges from 6.65 percent to 7.30 percent, depending on the loan’s reset frequency.
SBI revises and evaluates MCLR rates each month and compares its home loan and other loan interest rates to MCLR rates of various tenors.
|Lending Rate tenure i.e. MCLR Tenure||Current SBI Lending Rate in %|
|For a Month||6.65|
|For Three Months||6.65|
|For Six Month||6.95|
|For One Year||7.00|
|For Two Years||7.20|
|For Three Years||7.30|
|Current Base Rate of SBI||7.40|
SBI mortgage loan interest rate 2021
The interest rates of SBI mortgage loans for salaried-employees are given below in the table:
Rate of Interest for Residential as well as Commercial Property
|Total Amount of Loan||Rate in %|
|For loans up to ₹ 1 Cr||8.80|
|For loans above ₹ 1 Cr||9.30|
The interest rates of SBI mortgage loans for self-employed are given below in the table:
Rate of Interest for Residential Property
|Loan Amount||Rate in %|
|For loans up to ₹ 25 lacs – 1 crore||8.80|
|For loans above ₹ 1 Cr||9.30|
Rate of Interest for Commercial Property
|Loan Amount||Rate in %|
|For loans up to ₹ 25 lacs – 1 crore||8.90|
|For loans upto ₹ 1 Cr – ₹ 2 Cr||9.40|
|For loans above ₹ 2 Cr||9.45|
More About Mortgage and LAP
The most widely known Loan Against Property (LAP) lender in India is offered by SBI. All salaried, self-independent, professionals and non-professional LAP applicants will benefit from SBI Loan Against Property.
SBI Bank LAP can be used for business expansion, education, wedding or travel expenses, or medical emergencies with simple documentation as well as quick processing.
The interest rate on an SBI LAP starts at 8.80%. In addition, the interest rates on SBI LAP loans are lower for residential real estate and it is higher for commercial real estate.
SBI Bank provides specialized LAP products to meet the needs of a wide range of LAP customers.
SBI Loan Against Mortgage of Immovable Property, Loan against agricultural land, Loan against commercial property, Transfer of LAP from another bank, Loan against a residential property, are some of the most popular SBI LAP products.
Home loan interest rate
The largest well-known lender in the country is SBI provides the most cost-effective loans, with interest rates of 6.65 percent each year when the home loan is tied to the repo rate.
The state-run bank has also lowered home loan interest rates to 7% for loans linked to its old MCLR (marginal cost of funds-based lending rates), thanks to several rate cuts (MCLR.)
It’s worth noting that the public lender began offering repo rate-linked home loans on 1st October 2019, in response to a directive from the country’s banking regulator.
SBI hikes home loans rates
As per the update on April 2021: With effect from April 1, 2021, SBI has hiked the interest rate provided on home loans by 25bps, from 6.70 percent to 6.95 percent.
State Bank of India (SBI), the country’s largest lender, has increased its home loan rate to 6.95 percent, effective from April 1.
The lowest interest rate of 6.70 percent, which had been in effect for a limited time, came to an end on March 31.
The bank offered loans starting at 6.70 percent for amounts up to Rs. 75 lakh and 6.75 percent for home loans between Rs. 75 lakh and 5 crores for a limited time.
The new rate is 25 basis points higher than the teaser rate for a limited time, at 6.95 percent.
SBI’s increase in the minimum home loan rate is expected to prompt numerous different lenders to follow the same suit.
On home loans, the bank would also charge a consolidated processing fee. This fee will be 0.40 percent of the total loan amount plus GST, with a minimum to the maximum range of Rs.10,000 – 30,000 plus GST.
SBI cuts home loan interest rate
As per the update on March 2021:
SBI has announced to cut its interest rates on home loans once more, this time for a limited time until 31 March 2021, as well as announced concessions for female borrowers.
On the occasion of International Women’s Day, SBI announced that women borrowers would receive an additional five basis point discount.
However, the Borrowers will be offered the best rates by SBI based on their credit score as well as the loan amount.
In March 2021, SBI has announced to reduced its interest rates once again. The SBI confirmed that it will offer up to 70 basis points in interest rate concessions and home loans will start @ 6.7% per year.
SBI’s interest rates for home loans for pricing up to Rs 75 lacs begin @ 6.7 percent and are 6.75 percent above this amount range.
As a result, the state-run lender has also offered a waiver on the home loan processing fee, which is only valid for a limited time until 31st March 2021.
In the form of processing fee of home loans, banks usually take a certain amount of the total loan amount which lies between 0.50 % to 2 %.
SBI MCLR home loan rate
SBI lowered its MCLR by 25 basis points in June month in 2020, bringing home loan interest rates ranges between 7% to 7.35%.
Prior to switching to the repo rate for all new loans, SBI’s home loans were subject to the MCLR (marginal cost of funds-based lending rates) regime, which took effect on April 1, 2016.
It shows that borrowers with home loans that were approved before October 1, 2019, but after April 1, 2016, are still subject to the MCLR.
It’s worth noting that your old home loan isn’t automatically switched to the repo-linked lending rate (RLLR) regime. So, if an old borrower wishes to switch, they must approach their branch and request a switch.
Repo rate linked home loan
For the general reader, the repo rate is such a rate of interest that the Reserve Bank of India i.e. RBI charges from scheduled banks including SBI to lend money. At the present, the repo rate is at 4%.
More about Repo Rate
Let’s read something more about repo rate to understand better.
The Reserve Bank of India had previously told financial institutions that they needed to shift to an external lending benchmark by the end of October in 2019. It was said by RBI because the advantages of its policy changes were not reaching end-users under the preceding MCLR regime.
The RBI gave the choice to banks of benchmarking their variable rate loans to the repo rate, 3-month or 6-month treasury bills, or any other benchmark interest rate authored by FBIP (Financial Benchmarks India Private). As a result, most banks, along with SBI, have linked their own lending rates with the repo rate of RBI.
Beginning from 1st July 2020,
6.65% of interest rate on loans of the amount of Rs 30 lakhs
6.90% of interest rate on loans of more than Rs 30 lakhs but less than Rs 75 lakhs
7% of interest rates are subjected for loans of more than Rs 75 lakhs
8.80% on loans of amounts up to Rs 1 crore
9.30 % of interest rate on loans of more than Rs 1 crore but less than Rs 2 crore
Interest Rate of SBI Home Loan for Self-employed:
Self-employed borrowers must pay 15 basis points more than the average rate. This means they must pay 7.15 percent interest on loans up to Rs 30 lakhs. Women in this category will have to pay 7.05 percent interest.
The interest rate of SBI home loan for high-risk borrowers:
If the loan-amount ratio is greater than 80% but less than 90%, a borrower would have to pay an extra 10 basis points for an amount up to Rs 30 lakhs.
However, women will have to pay 7% interest on their home loan while men borrowers will be charged 7.05%. Individuals in high-risk categories will pay an extra 10 basis points to access an SBI loan.
SBI RLLR home loan rate
SBI gave an entire 40 basis point reduction in the repo rate (revealed by the RBI on May 22, 2020) to its debtors with Repo Linked Lending rate (RLLR). SBI’s RLLR is reduced by 40 basis points, to 6.25% per year from 6.65% per year, effective from June 1, 2020.
As a result, for a 30-year tenure on a loan of Rs. 25 lakh, EMIs entitled to benefits home loan accounts associated with MCLR will be reduced by approximately Rs. 421, and those which are linked to EBR/RLLR will be reduced by approximately Rs. 660.
When it is compared to MCLR, the reset period in the MCLR regime on a home loan is generally one year, whereas, in the RLLR regime, it is only 3 months.
So, should borrowers change from MCLR to RLLR?
Since any variations in monetary policy may show an immediate reflection in the EMI of your home loan if your home loan is tied to the repo rate, switching to a more transparent system makes complete sense.
Borrowers who have a low threshold for rapid change, on the other hand, may stick than with the old regime.
Impact of home loan moratorium on EMI
If someone pays a monthly EMI of Rs 25,000 on a home loan, you won’t have to pay it between March and August 2020 due to the moratorium. Beginning in September month, the bank will add the outstanding amount of Rs 1.50 lakhs to the principal amount of your home loan, and then they will charge interest on the entire amount.
During the period of moratorium, the accrue interest rate will continue on the outstanding fraction of your home loan.
Mainly, you must consider that while the interest rate on the home loans is extended for 6 months, it keeps up to accrue on your profile, and leads to higher costs. The net extra interest on a home loan of Rs 30 lakhs for the remaining 15 years of maturity would be Rs 4.68 lakhs (approx).
Impact of EMI moratorium on credit score
According to RBI guidelines, a missed EMI will not show up on your credit report as a default.
What if you decide to take the EMI moratorium of SBI?
If the EMI is debited through the NACH (National Automated Clearing House), it is recommended to send an email to the designated email ID with an application and a mandate for the NACH Extension to pause the installments.
An application writing with pen and paper i.e. handwritten in the same format also can be forwarded to the home branch.
Please keep in mind that the action will take 7 days to take effect.
What if you’ve already paid your EMI for March month?
You can request a refund from the same branch of the bank by sending an email to the specified email address.
An application is written with pen and paper i.e. handwritten in the same format also can be forwarded to the home branch.
The money will be refunded in about 7 working days by the bank.