SBI loan against property: eligibility, types, interest rates, how to apply
SBI loan against property: SBI commits to nation-building is complete & comprehensive. State Bank of India is actively involved since the year 1973 in non-profit activity called Community Services Banking. All the SBI branches and administrative offices throughout the country sponsor and participate in large number of welfare activities and social causes. SBI business is more than banking because they touch the lives of people anywhere in many ways.
The loan that SBI offers against properties can go from Rs. 25 lakhs rupees to over Rs. 1 crore rupees depending on certain conditions set forth by the bank. These loans can also be repaid over a comfortable period ranging from 5 years to 10 years. Another thing that these loans offer is complete transparency which means that there are no hidden charges levied.
SBI property loan details:
|Interest rates||9.45% – 11.00%|
|Processing fees||2.00% or Rs.50000/- Maximum|
|Repayment options||Upto 10 years|
|Maximum loan amount||Rs.1 Crore|
|Min. Income||Rs.12000 per month|
Types of Loans
There are various types of loans that State Bank Of India offer under the preview of loans against properties. Some of these loans are general loans against properties while other are more specific about the people who can actually take the loan. Even the approach to taking these loans can differ from one loan to another.
Loan against Mortgage of Immovable Property
This is a loan that can be taken by anyone who owns property in a city and is in need of money urgently. The main features of this loan are:
- The loan amounts are decided based on the classification of the city.
- Tier I and II cities have a maximum loan amount of Rs. 2 crore while other cities have a limit of Rs. 1 crore on the loans.
- The minimum amount that can be borrowed is Rs. 25,000.
- For certain states the maximum amount available is Rs. 50 lakhs.
- The margin for this loan is 40% of the market value of the property.
- The repayment period for this loan can extend up to 120 months.
- There is no prepayment charge for this loan.
- It also comes with a maximum processing fee of Rs. 50,933
Loan against Mortgage (LAM) of Immovable Property
For this type of a loan, the amount that can be borrowed will range from Rs. 25,000 to Rs. 2 crore. The maximum amount will vary based on the city where some cities will get a limit of Rs. 1 crore and others Rs. 50 lakhs.
General Loan against Property
For a general loan against the property the amounts that can be borrowed are Rs. 25,000 to Rs. 1 crore but it is decided based on the following criteria.
Eligibility criteria for SBI Loan against Property
There are certain eligibility criteria that need to be met for each of the loans on offer by SBI and these are:
- Those who work in the agricultural industry can apply for the loan against properties.
- Anyone who is either salaried or self-employed can apply for these loans.
- The applicant will have to be under the age of 60 years.
- In the case of a regular loan against property, the net monthly income needs to be at least Rs. 12,000 or more for salaried individuals and for self-employed individuals it needs to be a minimum of Rs. 1.5 lakhs per annum.
- In case of the Rent Plus loan, only those who rent their property to banks, MNCs or large or medium sized companies can apply for the loan.
- For loan against mortgage of immovable properties the applicants will need to have a net monthly income of Rs. 25,000 or more if they are salaried.
- For the same loan, self-employed individuals will need to have a net annual income of more than Rs. 3 lakhs.
Loan against Property Interest rates for SBI
The interest rate charged on these loans is calculated by adding an additional amount to the base rate being offered by the bank. The current base rate for SBI is 9.7% per annum which means that the interest charged is:
Loan against mortgage of immovable property
- 60% per annum (base rate + 2.9%) for loans of up to Rs. 1 crore.
- 85% per annum (base rate + 3.15%) for loans that exceed Rs. 1 crore.
Loan against Property
- In the case of a loan against propertythe base rate being offered by the bank is 85% and the interest rate is the base rate plus 2.50% above the floating base rate.
- This interest rate is also applied on a daily or monthly reducing balance basis.
One thing should be kept in mind is that the interest rates are subject to banks regulations and can change without notice, hence it is always a good practice to check the current rates with the bank before applying for the loan.
What is the repayments option available and how long can it be repaid?
Customer can repay the loan through electronic clearance system, more popularly known as ECS, by instructing State Bank of India to deduct monthly instalments from the given bank account. Alternatively, you may repay the loan amount through post-dated cheques by using various financing schemes.
What are the maximum and minimum amounts that you can avail as a loan from SBI against your property?
Customer can avail a property loan ranging from Rs. 5 lakh to Rs. 5 crore depending on the value of your property against which you want to avail the mortgage loan. The assessment of the property is done by SBI before the loan is disbursed.
What type of property can be used as collateral to avail the loan?
Self-occupied residential property, commercial properties such as offices and shops and alternate property such as schools, hospitals, residential houses, industrial properties, and all such other properties can be used as collateral for availing a loan against property.