SBI or State Bank of India's term home loans start from an interest rate of 8.6 per cent. The interest rate for State Bank of India (SBI)'s home loan products ranges from 8.6 per cent to 9.15 per cent on home loans up to Rs 75 lakh, according to SBI's home loan website - homeloans.sbi. The actual rate of interest is based on factors such as the LTV or loan-to-value ratio and risk factor of the applicant, and whether the borrower is salaried. SBI offers 5 basis points (0.05 per cent) lower interest rates on home loans to women compared to other customers, according to the SBI home loan website. (Also read: Your SBI savings account balance may fetch lesser interest from this month. here's why)
Here are the interest rates charged by State Bank of India (SBI) from its home loan borrowers:
SBI home loan interest rate (term loan) for salaried individuals
SBI provides term home loans up to Rs 30 lakh at an interest rate of 8.6 per cent to 8.7 per cent to salaried women, and 8.65 per cent to 8.75 per cent to other salaried customers, according to the SBI website.
For home loans worth Rs 30 lakh-Rs 75 lakh, SBI offers interest rates to the tune of 8.85 per cent to 9.95 per cent to salaried women, and 8.9 per cent to 9 per cent to other salaried customers.
|Category||Home loan (term loan)|
|Up to Rs 30 lakh||Above Rs 30 lakh up to Rs 75 lakh||Above Rs 75 lakh|
SBI home loan interest rate (term loan) for non-salaried individuals
For home loans up to Rs 30 lakh, SBI offers interest rates of 8.75-8.85 per cent to non-salaried women, and 8.8-8.9 per cent to other non-salaried customers. In the Rs 30 lakh to Rs 75 lakh category of home loans, SBI offers interest rates of 9-9.1 per cent to non-salaried women, and 9.05-9.15 per cent to other non-salaried customers, according to the SBI website.
SBI home loans above Rs 75 lakh
SBI offers interest rates to the tune of 8.95 per cent to 9.2 per cent to women for home loans above Rs 75 lakh. For other customers, SBI interest rates range from 9 per cent to 9.3 per cent for home loans above Rs 75 lakh, according to the bank's home loan website.
Factors that determine SBI home loan interest rate for an applicant
SBI's interest rates on term home loans vary from customer to customer depending upon the risk score of a customer. Lenders assess the risk behind a loan application depending on the borrower's profile, based on factors such as income, credit score and loan-to-value ratio.
LTV is a gauge of mortgage risk used by banks to assess a loan application.
SBI home loan processing fee
SBI charges a minimum fee of Rs 2,000 and a maximum of Rs 10,000 (excluding tax) for the processing of home loan applications. The fee is derived as 0.35 per cent of the loan amount (excluding tax). However, SBI has waived off the loan processing fee till May 31, according to the bank's website.