This article focuses on the SBI Mortgage Loan Eligibility Criteria. We will also provide you with an overview of the latest mortgage rates along with the features and requirements of this category of loan.
SBI Mortgage Loan Eligibility Criteria
Following are some of the aspects in which the applicant needs to qualify to fulfil the requirements of being eligible to apply for a mortgage loan at the State Bank of India:
- The applicant should not be more than 70 years in age while applying for the loan.
- He or she should be either a salaried employee or own a business that yields a monthly income of at least Rs. 25,000 or their annual income should be at least Rs. 3 lakhs.
- Your credit history must have an appropriate score that justifies your monthly payment of bills on time.
- The property which is to serve as collateral should be owned by the applicant to mortgage it.
- EMI and NMI (net monthly income) ratio should either be less or equal to 50% of the applicant.
Applying for mortgage loans are now just on your fingertips as you can easily apply for a mortgage loan online at the official website of the SBI. Note that, an NRI could also apply for SBI Mortgage Loan provided he or she meets the above-stated criteria for eligibility. Also, the NRI (non-resident Indian) should hold property in his or her name or in any of his or her family member’s name to be able to mortgage it against applying for a loan.
Another factor to make note of is that third party loans are also available under SBI mortgage loan plans. However, such loans are only sanctioned when the third party appears as a guarantor for the loan when the agreement is signed.
Features of SBI mortgage loans
Listed below are some of the benefits which a loan applicant of SBI mortgage loans enjoy:
- SBI mortgage loans offer a higher value loan amount to individuals that range from Rs. 25,000 to Rs. 2 crores based on their property value that is to be mortgaged.
- Loans are sanctioned with a higher margin that is for up to 40% based on the value of the property that will serve as collateral against the loan taken.
- Minimum documents are required for applying for SBI mortgage loans, thus making it a simple and hassle-free process without any complications.
- Mortgage loans at the State Bank of India have competitive and attractive interest rates to serve its applicants such as interests are charged on the reducing sum on a monthly or daily basis.
- There are no hidden costs as the operations are carried out under complete transparency. Moreover, processing fee charges are also kept to the minimum.
- The repayment procedure is also made flexible under the equated monthly with the maximum tenure for repayment listed as 180 months.
- Along with flexible repayment procedure, if a borrower intends to prepay his loan amount then no prepayment fee or penalty would be levied on the remaining amount.
Home loans under SBI Mortgage plan
SBI is recognised to be one of the finest and the largest providers of easy home loans for applicants. Being awarded as the winner of the “Best Home Loan Provider” for its transparency and integrity in providing for easy home loans for low income earners, SBI has served over 30 lakh families in India to own their dream homes.
With SBI’s mortgage and home loan funding scheme, getting a home loan with bad credit is now possible as home loans are provided at low credits only with SBI. Previously, lenders would strongly recommend a good credit history with a substantial supporting credit score for both secured and unsecured loans.
Online home loan, especially the unsecured ones who are considered to be easy mortgage lenders, only sanction such loans when the applicant has a credit score over 800. A credit score usually depicts your consistency is paying your monthly bills and credits over a period. This helps to justify whether you can be able to pay off your EMIs against the loan borrowed on time.
Thus, maintaining a good credit score by paying off your dues on time is necessary if you are planning for a home loan finance in the future. However, with the launch of SBI policy of providing low credit home loans, buyers of such loans find it easier in getting a house loan with bad credit history.
FAQs
Q1. What are the documents required to apply for SBI mortgage loan?
Ans. The following documents must be produced to avail the SBI mortgage services for a loan:
- Applicants need to have the legal and verified documents of the property which they will mortgage as collateral against borrowing a secured loan.
- Documents verifying the income and tax details of the applicant is also required.
- The applicant’s bank account details are a must.
- A valid identity proof should also be provided.
- Passport size photographs of the applicant are to be submitted as well.
Q2. What are the Latest Mortgage Rates offered by SBI?
Ans. Here are some of the mortgage finance rates charged by SBI for your reference:
- The interest rate charged on a loan amount of up to Rs. 1 crore is 9.75%.
- For loans above Rs. 1 crore and up to Rs. 2 crores, the interest rate charged is 10.25%.
- Loan amount falling between Rs. 2 crores and Rs. 5 crores are charged at an interest rate of 10.65%.
Q3. What is the processing fee charged by SBI for mortgage loans?
Ans. Financing the mortgage loan comes with an additional processing fee which maybe 1% of the total loan borrowed with the maximum processing fee being subjected to be Rs.50,000. However, such processing fees are inclusive of service taxes and there are no prepayment charges on this loan.
Also Read : 6 Rules For First-Time Home Loan Buyers
