SBI Mortgage Loan Interest Rate & Details 2021 | |
| Interest Rate | 8.45% p.a. onwards |
| Loan Amount | Rs. 10 lakh to Rs. 7.5 crore |
| Age Limit | 18 – 70 years |
| Loan Tenure | 5 – 15 years |
| Processing Fee | 1% of loan amount + GST (max. Rs. 50,000) |
Note: The figures given in the table are indicative and are subject to change at the banks’ discretion without prior information.
The State Bank of India (SBI) offers loan against property for meeting personal expenses on higher education, wedding, healthcare, etc. Individuals can avail SBI mortgage loan against both residential and select commercial properties. Read further to know about SBI loan against property interest rate, loan amount, eligibility criteria, documents and more.
Table of Contents
- SBI Loan Against Property Features & Benefits
- SBI Loan Against Property Interest Rates
- SBI Loan Against Property Fees and Other Charges
- SBI Loan Against Property Eligibility Criteria
- Documents Required for SBI Loan Against Property
- How to Apply for SBI Loan Against Property
- SBI Loan Against Property Customer Care
- SBI Loan Against Property FAQs
SBI Loan Against Property Features & Benefits
- Flexible end use as the loan can be used for any personal purpose
- Interest rates are levied on a daily reducing balance method
- Loan can be availed against both residential and select commercial properties
- Rental income in select cases also considered for loan eligibility
- No prepayment penalties are levied
SBI Loan Against Property Interest Rates
Where more than 50% of NMI (Net Monthly Income) is coming from Salary Income
| Loan Amount | Interest Rate |
| Up to Rs. 1 crore | 8.45% p.a. |
| Above Rs. 1 crore & up to Rs. 2 crore | 9.10% p.a. |
| Above Rs. 2 crore & up to Rs. 7.5 crore | 9.50% p.a. |
Where more than 50% of NMI (Net Monthly Income) is coming from Business/Rental Income
| Loan Amount | Interest Rate |
| Up to Rs. 1 crore | 9.10% p.a. |
| Above Rs. 1 crore & up to Rs. 2 crore | 9.60% p.a. |
| Above Rs. 2 crore & up to Rs. 7.5 crore | 11.00% p.a. |
SBI Loan Against Property Fees and Other Charges
| Particulars | Charges |
| Processing Fee | 1% of loan amount + GST (max. Rs. 50,000) |
| Pre-payment/ pre-closure penalty | Nil |
| Bounced cheque/ECS or SI dishonor | Rs. 250 for every instance |
| Penal Interest | For loans up to Rs. 25,000 – Nil For loans above Rs. 25,000 – 2% p.a. on the overdue amount for the period of default |
| Collected for payment to empaneled Advocate/ Valuer for Legal opinion, Search Report and Valuation Fee | As per Actual |
| Any other fee, if any | As per Actual |
| Above Rs. 2 crore & up to Rs. 7.5 crore | 11.00% |
SBI Loan Against Property Eligibility Criteria
| Nationality | Non Resident Indians (NRI) and Resident Indians |
| Employment Type |
|
| Security |
|
| Age | Minimum – 18 years Maximum – 70 years |
| Minimum net monthly income | Rs. 25,000 |
| LTV Ratio |
|
| Maximum permissible EMI/NMI |
|
Documents Required for SBI Loan Against Property
- Completed loan application form
- Three passport size photographs
- Employer identity card
- Proof of Identity (PAN/ Passport/ Driver’s License/ Voter ID card)
- Proof of Residence (Recent Utility Bills/Passport/ Driving License/ Aadhaar Card)
- Proof of Residence (Recent Utility Bills/Passport/ Driving License/ Aadhaar Card)
- Proof of Residence (Recent Utility Bills/Passport/ Driving License/ Aadhaar Card)
- Property Papers (House Construction Permission, Allotment Letter/Stamped Agreement for Sale, Occupancy Certificate (for ready to move property), Maintenance Bill, Electricity Bill, Property Tax Receipt, Approved Plan copy (Xerox Blueprint) & Registered Development Agreement of the builder, Conveyance Deed (For New Property), Payment Receipts/Bank A/c statements showing payments made to Builder/Seller)
- Account Statements (Last 6 months’ A/c statements of all bank accounts held by the applicant/s and previous/ current Loan A/c statement for last 1 year)
- Income Proof for Salaried (Salary Slip or Salary Certificate of last 3 months/ Form 16 for last 2 years/ IT Returns for last 2 financial years, acknowledged by IT Dept.)
- Income Proof for Non-Salaried (Business address proof/ IT returns for last 3 years/ Balance Sheet & P&L A/c for last 3 years/ Business License Details(or equivalent)/ TDS Certificate (Form 16A, if applicable)/ Certificate of qualification (for C.A./ Doctor and other professionals)
Note: Bank may ask for additional documents based on the applicant’s profile.
How to Apply for SBI Loan Against Property
You can apply for SBI Loan against Property scheme:
- Online through the official website of State Bank of India
- Offline by visiting the nearest branch of SBI
SBI Loan Against Property Customer Care
Existing borrowers of SBI personal loan can contact the bank via the following ways:
- Call at SBI Customer Care Toll-free Numbers – 1800-425-3800 and 1800-11-2211
- Reach the customer care of SBI by calling 080-26599990 (standard charges apply)
- SMS UNHAPPY to 8008-2020-20
- You can also submit the Online Customer Complaint Form at www.sbi.co.in
SBI Loan Against Property FAQs
What are the maximum and minimum amounts that you can avail as a loan from SBI against your property?
You can avail a property loan ranging from Rs. 5 lakhs to Rs. 7.5 crores 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 is the repayments option available and how long can it be repaid?
You 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 type of property can be used as collateral to avail this 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.
How does bank determine who is eligible for availing a loan against property?
The following factors are considered to determine loan amount and eligibility for availing a loan:
- Valuation of property (fair market value)
- Age
- Income
- Credit Score
- Stability / continuity of employment of employment or business
- Past borrowing track record
What is the disbursement and sanctioning process of property loan and how long does it take finally for a loan to get processed?
Property loan involves following disbursement and documentation process:
- Filling the application form
- Deciding on the loan amount
- Submission of property and finance related documents
- Personal discussion with the banker
- Investigation verification
- Sanctioning of the loan by the bank
- Acceptance of the loan by you
- Legal / Property assessment
- Disbursement of loan
What are the tax incentives for a loan against property?
There are no tax incentives for a loan against property for salaried individuals. Under the Indian Income Tax Act, 1961, tax exemptions are available under Chapter VI and Section 24 for a home loan. However, the same exemptions are not available for a loan against property. The reason for this is that unlike a home loan that you take for building a house, a loan against property can be used for a variety of reasons.
Therefore, it is better to take a loan against property for business reasons. You can show that the loan has been used for capital expenses and show the repayment as business expenses.
Should I take a loan against property or a personal loan from SBI to meet personal expenses?
A loan against property is a form of secured loan while a personal loan is an unsecured loan. State Bank of India has different terms and conditions for each loan. Experts suggest that a personal loan may be a good idea if you need a small amount that you can pay off within 2-3 years. Alternatively, a loan against property is what you need if you are looking for a substantial sum. Since mortgage loans come at a lower rate of interest, the EMIs are low, and so the outgo for the same sum of money for the same repayment period is considerably less for an SBI loan against property as compared to a home loan.
SBI loan against property interest rates are floating or fixed?
SBI LAP rate of interest is floating. Also, they the rates are linked to Marginal Cost of Funds based Lending Rate (MCLR). The rate of interest is will get revised once a year and may change as per the change in the linked external benchmark.
What are the eligibility criteria for SBI mortgage loan?
The eligibility criteria for SBI loan against property are:
- Nationality – Non Resident Indians (NRI) and Resident Indians
- Employment Type – Salaried, Self-employed Professional, Self-employed Non Professional and any other income tax assesse
- Security – Residential & Select Commercial Properties. The properties can be in the loan applicant’s name or in the make of his/her spouse, children, parent or sibling. In cases where commercial properties are rented out on lease, equitable mortgage on the property will be created and assignment of rental receivable will be obtained
- Age – 18 to 70 years
- Minimum net monthly income – Rs. 25,000
- LTV Ratio – 60% – 65%, based on loan amount and other related parameters
- EMI/NMI Ratio – 50% to 60%, based on income and other related parameters
For which purpose can SBI LAP be availed?
SBI loan against property can be availed for fulfilling personal needs other than speculative purpose. However, SBI LAP will not be permitted for business purpose.