SBI, India’s leading public sector bank, offers unmatched home loan deals. Wide-range of home loan schemes for both salaried and self-employed individuals, the SBI home loan eligibility criterion promises maximum ease to all loan seekers. Easy eligibility conditions with a low rate of interest, minimum charges and quick processing; check your SBI home loan eligibility to bag the best deal.
In order to avail of a home loan with SBI, applicants are required to fulfil some basic eligibility criteria. These criteria help the bank decide if the applicant has the capacity to repay the loan according to the terms mentioned in the sanction letter.
When you apply for a loan online, you can use the SBI home loan eligibility criteria to check if you qualify for the loan amount that you need. There are several factors that change based on the eligibility criteria of the individual as follows:
In the following section, you can read about each eligibility criteria and how it affects your chances of getting a loan.
The income of the customer is the most important factor in determining the eligibility of the customer. SBI Home Loan Eligibility based on salary allows the bank to understand the repayment capacity of the customer. The higher the income, the more capable the customer is to repay the loan as per the agreed terms.
Here are some important points with reference to SBI Home Loan Eligibility based on Salary:
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Age plays a critical role when sanctioning a home loan. When it comes to a home loan, a younger customer is preferred as he or she can avail of maximum repayment tenure. This also reduces the EMI obligation each month, making it more affordable.
SBI Home Loan Eligibility based on age is standard for individuals who are salaried and employed:
Although younger customers can get a longer repayment tenure, it is recommended that you choose the shortest one possible. When the tenure increases, the EMI reduces. However, the amount that you pay towards the interest towards the end of the loan tenure is significantly high.
The property that is purchased using the home loan is used as a mortgage or security against the loan. Therefore the value of the property plays an important role in the eligibility of the customer. It also determines the loan amount that will be sanctioned. This SBI home loan eligibility criterion is also referred to as LTV or Loan to Value Ratio.
This ratio is not calculated based on the market value of the product. It is based on the valuation by authorities from the bank. The importance of LTV when approving home loans is as follows:
At SBI, a customer can get up to 90% of the value of the property as a loan.
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Based on your financial transactions such as income and repayment towards your loans, a credit report is prepared by the Credit Bureau. This results in a CIBIL score or a credit score that determines your financial health.
The higher the credit score, the more credible the borrower is. It means that you are regular with your repayments towards any existing credit that you may have with other banks and financial institutions. So, if the credit score is higher, the chances of getting approval on the loan are also higher. On the other hand, with a lower credit score, getting any form of credit is difficult.
In order to get an SBI Home Loan, it is mandatory to have a credit score of at least 650. Several factors affect your credit score. These are:
The cibil score required for home loan is lower in comparison to other loans like personal loans. Since the property is taken as a mortgage against the loan, you can get approval on your home loan application if you fulfil other requirements like a good income.
SBI offers special loan plans for women, such as SBI Her Ghar which allow them to finance their properties easily. While the eligibility criteria for these loans are the same as any home loan, there are some additional conditions and features that make the processes of applying for a home loan hassle-free.
Here are some important points to remember with respect to SBI Home Loan Eligibility For Women:
The primary benefit of SBI Home loan for women is that they get the loan at a concessional interest rate. The interest rate is 9.85% per annum. They get a concession of about 05 basis points.
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Fixed Obligation to Income Ratio of FOIR is a very important SBI Home Loan Eligibility criteria. With respect to home loans, it is also known as the debt-to-income ratio. The FOIR parameter is the percentage of the income of the applicant that is available to repay the EMI every month. In simple terms, it reflects the disposable income available to the applicant that can be channeled towards repayments.
FOIR is calculated by taking into consideration the fixed monthly expenses like PF, SIPs, EMIs towards other loans and credit cards, rent etc. and the income of the individual each month. The formula used to calculate the FOIR is
(Total monthly obligations/ Gross Income Per Month) * 100
For example, if the net monthly outgoing of an individual is Rs.10000 and the income is Rs.20000, the FOIR percentage is 50%. This means that 50% of the individual’s income is available to make additional repayments towards a new loan.
The minimum FOIR required for an applicant to get approval on an SBI home loan is 0.50 or 50%. However, the disposable funds available should be equal to or more than the predicted EMI per month towards the loan. This indicates that the applicant can repay the loan easily without it becoming a financial burden every month.
For all SBI Home Loans, the basic eligibility criteria remain the same, as follows:
However, as mentioned above, SBI has several home loan products that are targeted towards specific customer segments. There are slight variations in the SBI home loan eligibility requirements for these loans as mentioned below:
SBI RRLR linked Home Loan:
SBI NRI Home Loan
SBI Flexipay Home Loan
SBI Privilege Home Loan
SBI Shaurya Home Loan
SBI Realty Home Loan Eligibility
SBI Home Loan Top Up
SBI Bridge Loan Eligibility
SBI Smart Home Loan Top Up
SBI Insta Home loan Top Up
SBI Corporate Home Loan
SBI Home Loan for Non-Salaried Individuals
SBI Tribal Plus
SBI Earnest Money Deposit
SBI Commercial Real Estate Home Loan
The home loan amount sanctioned in each case depends on several factors. This includes the CIBIL Score of the applicant, the income and the employment status.
If you are planning to apply for an SBI Home Loan, then there are some ways in which you can improve your chances of getting approval:
The SBI home loan eligibility criteria vary according to the product that the applicant chooses. However, there are eligibility criteria that are uniform for most home loans:
Yes. When you add a co-applicant for your home loan application, the chances of getting approved increase. This is because the co-applicant's income is also taken into consideration. It also helps to have a younger co-applicant if you are an older applicant. That way, you can also enjoy a longer repayment tenure for the loan. Co-applicants include your spouse, parent or child. However, they should also fit into the basic eligibility criteria for SBI Home Loans.
Yes. There are special home loan products for NRIs and PSOs. NRIs can also avail of home loan top up facilities at SBI.
At the time of applying for an SBI home loan, you can use an SBI home loan eligibility calculator to check if you can avail of a specific loan. All you have to do is enter the necessary details and choose the rate of interest, repayment tenure and the loan amount that you need. Additionally, the documents that you submit and the CIBIL report are assessed to check if you are eligible for a home loan.
There are some simple ways to increase your SBI home loan eligibility:
The CIBIL score is provided by the Credit Bureau of India. Based on all the financial transactions that you make, a report is sent by credit and banking organizations to the bureau. Based on this, your score is calculated. The credit score is indicative of the individual’s:
This is why CIBIL Score plays a very important role in determining whether you are eligible for an SBI Home Loan. A higher credit score shows that you are a low-risk customer. This means that you have the capacity to make regular repayments towards your loan. A low credit score on the other hand shows that you do not have the financial ability to make payments towards any more loans.
For this reason, you also have a lower interest rate with a higher credit score.
If you have a low CIBIL score, there are different options available for you to improve it over time. Here are some tips to improve your credit score:
Yes. SBI Home Loan eligibility is based on the income generated per month. Therefore, for both self-employed and salaried individuals, it is very important to submit documents that show a stable income for 2 years at least.
The value of the property determines the loan amount that you are eligible for. This is called the LTV or loan to value ratio which is calculated according to the value of the property as determined by an approved valuer from SBI.
If you wish to get a lower interest rate for your SBI Home Loan, you can try the following options:
The interest rate is lowered by the bank when the customer is a low-risk applicant. If the bank is certain that you are capable of making regular payments towards the loan, they will offer you a better interest rate. This also makes your EMIs more affordable.