SBI Loan Against Property

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[Formerly known as Credit Information Bureau (India) Limited]
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Date :21/01/2020

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Date : 21/01/2020

I hereby appoint Paisabazaar as my authorised representative to receive my credit information from the following bureau partners :

I hereby unconditionally consent to and instruct the above bureaus to provide my credit information to me and Paisabazaar on a month to month basis. I understand that I shall have the option to opt out/unsubscribe from the service.

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Date :21/01/2020

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Definitions: Capitalised terms used herein but not defined above shall have the following meanings:
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"CICRA" shall mean the Credit Information Companies (Regulation) Act, 2005 read with the Credit Information Companies Rules, 2006 and the Credit Information Companies Regulations, 2006, and shall include any other rules and regulations prescribed thereunder.
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I hereby appoint Paisabazaar as my authorised representative to receive my credit information from the following bureau partners :

I hereby unconditionally consent to and instruct the above bureaus to provide my credit information to me and Paisabazaar on a month to month basis. I understand that I shall have the option to opt out/unsubscribe from the service.

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Date :21/01/2020

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CRIF HIGH MARK TERMS
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YOU HEREBY APPOINT PAISABAZAAR AS YOUR AUTHORISED REPRESENTATIVE TO RECEIVE YOUR CREDIT INFORMATION FROM CRIF HIGH MARK. BY EXECUTING THIS AGREEMENT / CONSENT FORM, YOU ARE EXPRESSLY AGREEING TO ACCESS THE CRIF HIGH MARK CREDIT INFORMATION REPORT AND CREDIT SCORE, AGGREGATE SCORES, INFERENCES, REFERENCES AND DETAILS (AS DEFINED BELOW)(TOGETHER REFERRED AS "CREDIT INFORMATION"). YOU HEREBY ALSO IRREVOCABLY AND UNCONDITIONALLY CONSENT TO SUCH CREDIT INFORMATION BEING PROVIDED BY CRIF HIGH MARK TO YOU AND PAISABAZAAR BY USING CRIF HIGH MARK TOOLS, ALGORITHMS AND DEVICES AND YOU HEREBY AGREE, ACKNOWLEDGE AND ACCEPT THE TERMS AND CONDITIONS SET FORTH HEREIN. YOU ALSO ACKNOWLEDGE THAT YOU SHALL NOT RAISE ANY CLAIM OR HOLD LIABLE CRIF HIGH MARK CREDIT INFORMATION SERVICES PRIVATE LIMITED IN RELATION TO YOUR CREDIT INFORMATION REPORT AND CREDIT SCORE PROVIDED OR TO BE PROVIDED BY CRIF HIGH MARK TO PAISABAZAAR.

Terms and Conditions: Information Collection, Use, Confidentiality, No-Disclosure and Data Purging PAISABAZAAR shall access your Credit Information as your authorized representative and PAISABAZAAR shall use the Credit Information for limited end use purpose consisting of and in relation to the services proposed to be availed by you from PAISABAZAAR. PAISABAZAAR shall not aggregate, retain, store, copy, reproduce, republish, upload, post, transmit, sell or rent the Credit Information to any other person and the same cannot be copied or reproduced other than as agreed herein.

The Parties agree to protect and keep confidential the Credit Information both online and offline. The Credit Information shared by you, or received on by us on your behalf shall be destroyed, purged, erased promptly upon request from the consumer or the consumer withdrawing the consent to retain such credit information / reports by deleting/deactivating the consumers account with Paisabazaar.

Governing Law and Jurisdiction Definitions: Capitalised terms used herein but not defined above shall have the following meanings:
" Business Day" means a day (other than a public holiday) on which banks are open for general business in Gurgaon and Mumbai.
" Credit Information Report" means the credit information / scores/ aggregates / variables / inferences or reports which shall be generated by CRIF High Mark;
" Credit Score" means the score which shall be mentioned on the Credit Information Report which shall be computed by CRIF High Mark.
" CICRA" shall mean the Credit Information Companies (Regulation) Act, 2005 read with the Credit Information Companies Rules, 2006 and the Credit Information Companies Regulations, 2006, and shall include any other rules and regulations prescribed thereunder.
IN CASE THERE IS ANY DISCREPANCY OR INABILITY IN COMPLETION OF ONLINE AUTHENTICATION, PLEASE SUBMIT YOUR SELF ATTESTED KYC DOCUMENTATION IN SCANNED COPIES FOR SHARING OF YOUR CREDIT INFORMATION BY CRIF HIGH MARK WITH YOU AND PAISABAZAAR (YOUR AUTHORISED REPRESENTATIVE).
ONLINE SUBMISSION - DOES NOT REQUIRE SIGNATURE AND EXECUTION"

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Updated: 13-05-2019 11:26:44 AM

State Bank of India (SBI) is the largest public sector bank that provides a range of banking and financial products and services to its customers in India and overseas. One of its prominent offerings is its loan against property segment. The bank offers an assortment of loan against property for its customers. SBI offers property loans for cash requirements against the individual’s asset (or property).

SBI Loan against property (LAP) can also be called an all-purpose loan to counter your financial emergency. If you are in cash crunch you can leverage a property and avail this SBI Mortgage loan to meet your needs and requirements

SBI Loan Against Property Interest Rates 2019

Interest Rate10% onwards
Max Age CriteriaBefore 70 Years loan should be liquidated
Loan TenorMin. 5 Years & Max. 15 Years
Min. Loan AmountRs. 10 lakhs
Max. Loan AmountRs. 7.5 crores
Lon-to-Value (LTV) Ratio65% upto Rs. 1 cr, Above Rs. 1 cr & upto Rs. 7.5 crs. is 60%
Processing FeesUpto 1% of loan amount, Max. Rs. 50000 + GST
Minimum Net IncomeRs. 25000/- per month
SecurityEquitable mortgage of the property

Note: The mentioned interest rates, fees and charges are subject to change and depend on the sole discretion of the bank and RBI.GST and service tax shall be levied extra on the mentioned charges.

SBI LAP Interest Rates: The tables below represent the loan liability and interest rates:

MCLR for 1 year = 8.55%

SBI Mortgage Loan Interest Rate for Salaried
Loan AmountRate of Interest
For Loans upto Rs.1 crore1.45% + 1 years MCLR = 10%
Loans above Rs.1 crore2.10% + 1 year MCLR = 10.65%
Above Rs. 2 crores & upto Rs. 7.50 crores2.50% + 1 year MCLR = 11.05%
SBI LAP Interest Rate for Self-employed
Loan AmountRate of Interest
Loans up to Rs.1 crore2.10% + 1 years MCLR = 10.65%
Loans above Rs.1 crore2.60% + 1 year MCLR = 11.15%
Above Rs. 2 crores & upto Rs. 7.50 crores3.00% + 1 year MCLR = 11.55%
Types of SBI Loan Against Property
Is Loan Against Property the best option?
Applying for Loan Against Property with Paisabazaar.com
Loan Against Property from SBI – FAQs

Types of SBI Loan Against Property

a) Loan against Mortgage of Immovable property

The loan is issued against mortgage of properties which are immovable in nature. The features of the loan offered are as follows:

  • It is a loan issued for general purpose use and should not be utilized for speculative purposes either in the real estate market or on the capital market
  • The ratio of Equated Monthly Instalment and the Net Monthly Income should not exceed more than 50%
  • The minimum amount of loan granted under this type of scheme is Rs.10 lakhs
  • The maximum loan amount offers under this scheme is Rs. 5 crore
  • The maximum amount of the loan is 65% of the market value of the mortgaged property keeping in mind that the Equated Monthly Instalment Ratio to the Net Monthly Income does not exceed 50%.
  • The repayment period is a maximum of 180 months.
  • The customer can pre-pay the loan anytime whenever he/he has surplus cash without worrying about any pre-payment charges. The bank does not charge any charges on pre-payment of the loan.

 Eligibility of Loan against Mortgage of Immovable property

The individuals who meet the following criteria are eligible for loan against property from the State Bank of India:

  • This loan from SBI is available to employees, professionals, self-employed individuals, individuals who are IT Assesses or agriculturists and others engaged in allied activities having an urban property in his/her name or in the name of any third party provided the third party agrees to guarantee the loan
  • The minimum Net Monthly Income for salaried employees should be Rs. 25,000 and for others, the minimum Net Annual Income should be Rs. 3 lakhs
  • The applicant should not be aged more than 70 years at the time of loan liquidation.

 b) Rent Plus Loan Against Property

The Rent Plus Loan-Against-Property from SBI provides assignment of future rents to the commercial and residential property owners so that they can meet their monetary requirements. The features of the loan are as follows:

  • The amount of loan available under the scheme is calculated as the lowest of the realizable value of the mortgaged property as per the valuation report of the bank’s approved value or the maximum permissible amount of the scheme or 75% of the total rent receivable for the lower of the residual lease period or the loan period less the advance deposit, estimated amount of property tax, service tax, TDS and other statutory dues of the period.
  • The minimum amount of loan permissible under the scheme is Rs.50, 000 and the maximum amount is Rs. 7.5 crores for metro cities and Rs. 5 crores for non-metro cities.
  • The margin reserved by the State Bank of India is 25% of the loan amount.
  • The repayment period is a maximum of 10 years or the residual period of lease of the property whichever is lower. The customer can choose any period of repayment within this specified limit which will also determine the EMI amount payable by him/her. If the customer wishes to avail a lower EMI, the tenure chosen should be higher and if the customer can afford to make higher EMI payments, the tenure can be chosen to be lower.
  • Repayment of the EMI can be made either through Post-dated cheques drawn against the applicant’s bank account or through Electronic Clearing System (ECS) facility or by issuing a Standing Instruction (SI) to the bank to deduct the applicable EMIs as and when they fall due from the applicant’s savings or current account. However, the Standing Instruction facility is available only to those customers who have an existing bank account with SBI.
  • Processing fee is 2.02% of the loan amount + GST and service tax. Maximum amount Rs. 1,01,865/- to be paid upfront as processing charges.
  • There are no pre-payment charges and the customer can make pre-payments against this SBI property loan to reduce the incidence of interest charged on the outstanding balance of the loan amount

Eligibility of Rent Plus LAP

  • This loan from SBI is available to owners of residential buildings and commercial properties which are to be rented or are already rented to Multi-national Corporations, Banks or large and medium sized corporates.
  • The property should be located in urban, metro, semi-urban or rural area.
  • Plan approvals and other related permissions for the property should be available from appropriate authorities.
  • The property should be rented or are to be rented to MNCs, Banks or large and medium-sized corporates and the Network GM is vested with the authority to consider cases of other types of lessees.
  • The property should not be or had been leased to schools, colleges, hospitals, orphanages, nursing homes, old age homes, or any other social sector infrastructure.

Is Loan Against Property the best option?

The main reason for which people do not want to opt for this loan is because they do not want the bank to take custody of their property. Another reason is that there is no tax advantage given while paying the EMI on mortgage loan as compared to a home loan. However, this is only in the case of a salaried person. A business person can claim a tax deduction on the entire amount paid on the loan if he/she can prove that loan was taken to improve the business. The tax incentive is also available for a loan against any kind of securities, such as gold, any other that he/she possesses. However, if you need a large amount of money that runs into crores or lakhs, the only feasible assets that you may be able to as security is property which belongs to you.

Applying for Loan Against Property with Paisabazaar.com

An individual can apply for an SBI property loan in various ways. One of the most convenient ways is by simply visiting paisabazaar.com. To cash in on the online advantage which reduces hassles and is easier, customers can directly visit our website and apply for a SBI loan against property by submitting the loan application form by following these simple steps:

  • Visit paisabazaar.com and log in to the loan against property online application page
  • Provide your personal details and loan requirements
  • Select the loan scheme based on your requirements
  • Submit the scanned copies of your documents online
  • Select a loan scheme as per your requirement
  • Click ‘Apply’

For any assistance you may call at our customer service number at 1800 208 8877. Our customer service agents will also call you within 24 hours of submitting the online application form.

Loan Against Property from SBI – FAQs

Q. What are the maximum and minimum amounts that you can avail as a loan from SBI against your property?

A. 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.

Q. What is the repayments option available and how long can it be repaid?

A. 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.

Q. What type of property can be used as collateral to avail this loan?

A. 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.

Q. How does bank determine who is eligible for availing a loan against property?

A. 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

Q. What is the disbursement and sanctioning process of property loan and how long does it take finally for a loan to get processed?

A. 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

Q. What are the tax incentives for a loan against property?

A. 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.

Q. Should I take a loan against property or a personal loan from SBI to meet personal expenses?

A. 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.

Customers can apply for SBI Loan Against Property from their official website or can simply visit paisabazaar.com and apply for the loan online.

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SBI Loan Against Property
(4.5/5 ) 2 Reviews
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Jul 5 , 2019
4/5
SBI user all my life

I have been a SBI user all my life so when it came to opting for a bank for personal loan, SBI was my choice.

Feb 13 , 2019
5/5
Lower rate than personal loan

I was thinking to go for personal loan but got lesser ROI for loan against my property with easy process

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