SBI Loan Against Property 
Eligibility Criteria

The objective of the loan

• A personal loan against mortgage of residential or commercial property

Loan quantum

• Minimum - 10 Lakhs
• Maximum - 7.50 Crores depending on the location of the property

Rates of interest

• 9.30% to 10.85%

Security

• Equitable mortgage of property

Loan to Value (LTV) ratio

• Loans up to 1 Crore - 65%
• Loans above 1 Crore - 60%

Loan tenure

• Minimum - 5 years
• Maximum - 15 years

Processing fee

• 1% of the loan amount with a maximum of 50,000

The objective of the loan

• Meet business and personal requirements

Loan quantum

• Minimum amount - 10 Lakhs
• Maximum amount - 5 Crores

Rate of interest

• Same as that of SBI Loan Against Property

Security

• Equitable mortgage of property

LTV ratio

• Up to 1 Crore - 65%
• Above 1 Crore - 60%

Loan tenure

• Minimum - 5 years
• Maximum - 180 months

The objective of the loan

• Loan against rent receivables to meet business and family requirements

Quantum of the loan

Minimum - 50,000

• Maximum - 7.50 Crores in metro cities and 5 Crores in non-metros

Rate of interest

• Same as that of Loan Against Property

Security

• Equitable mortgage of the property
• Assignment of rent receivables

LTV ratio

• Maximum 75% of the value of the property

Loan tenure

• 10 years

Processing fee

• 2.02% of the loan amount with a maximum of 1,01,865 to be paid upfront

General Eligibility Criteria

• Resident individuals who are salaried persons, self-employed, income tax assesses, and NRIs, are eligible for a Loan Against Property.
• NRIs should have a property in India either in their names or in the names of their close relatives such as parents, spouse, children, or siblings.
• The minimum net salary for a salaried employee should be 25,000 per month
• In the case of self-employed individuals or professionals, the minimum net annual income should be 3 Lakhs.
• The borrower should liquidate the loan against the property before they attain the age of 70 years.

Eligibility Criteria Regarding the Location of Property - Maximum Eligibility Amount

• Property located in a rural and semi-urban area with a population of less than 1 Lakh - No loan eligibility.
• Property situated at non-BPR urban centres - 1 Crore
• Property located at BPR centres - 2 Crores
• Property located within the municipal corporation areas of Mumbai, NCR, Chennai, Pune, Bangalore, Ahmedabad, and Hyderabad:

a) Loan against mortgage of immovable property - 5 Crores

b) General scheme of Loan Against Property - 7.50 Crores

Eligibility Criteria - Loan to Value Ratio

• Up to an amount of 1 Crore - 65%
• More than 1 Crore - 60%

Eligibility Criteria - Rent Plus Scheme

The loan amount will be the lowest of the following individual calculations:

• 75% of the realisable value of the security
• Maximum amount permissible under the scheme
• 75% of the total rent receivable for the residual period of the lease (total amount minus the Advance deposit, property tax, service tax, TDS, and other statutory dues).

Eligibility Criteria - As Per Income

The net annual income plays a crucial role in deciding the eligibility amount.

Eligibility Criteria - Age of the Borrower

The borrower's age should not exceed 70 at the time of the maturity of the Loan Against Property.

You can also check Commercial Property Loan Online 

We shall consider a general model of calculating the eligibility for a Loan Against Property.

The following assumptions should provide us with the necessary background:

• Property located in a metro area
• Valuation report of the property indicates the value to be 3 Crores
• The net income of the borrower is from business purposes, and it is 12 Lakhs per annum
• The borrower has applied for a facility of 1 Crore
• The age of the borrower is 50 years
• The rate of interest is 10.10% - 11.65%

Calculation of eligibility - The least of the following

A = 60% of the value of the property - 1.80 Crores                    

B = 5 times the annual income of the applicant - 60 Lakhs

C = Amount Applied - 1 Crore

D = Net monthly income is 1 Lakh. Hence, the maximum EMI can be 60,000 (60% of NMI). EMI per lakh comes to 1,072. Therefore for an EMI of 60,000, the maximum amount of loan can be 55.97 Lakhs.

Thus, the total eligibility of the borrower works out to 55.97 Lakhs @9.95% for tenure of 15 years with an EMI of 59,975.

We shall now consider the case of a salaried person.

The following assumptions are necessary:

• Property located in other BPR centres
• Valuation of the property is 3 Crores
• The net salary of the applicant after all deductions is 80,000 per month
• The borrower applies for a loan of 1 Crore
• The age of the borrower is 56 years. Hence, the tenure can be a maximum of 14 years
• The rate of interest applicable on loan is 9.30%

Calculation of Eligibility - The least of the following:

A = 60% of the value of the property - 1.80 Crores

B = 5 times the annual income of the applicant - 48 Lakhs

C = Amount applied - 1 Crore

D = Net monthly income is 80,000. The maximum extent up to which we can stretch the EMI is 44,000 (55% of NMI). At the present rate of interest, the EMI works out to 1,067 per lakh. Therefore, the maximum eligibility is 41.23 Lakhs.

The total eligibility is 41.23 Lakhs @ 9.30% for 14 years with an EMI of 43,974.

This calculation is under the SBI Rent Plus scheme

Here are some assumptions:

• Property located in Mumbai
• Value of the property is 8 Crores
• Net monthly income of the applicant from salary is 75,000
• The rental income from the property is 2 Lakh (less TDS and other taxes)
• The residual lease period is 12 years
• The borrower applies for a loan for 4 Crores
• The rate of interest applicable on loan is 10.45%

Calculation of Eligibility - The least of the following:

A = 75% of the realisable value of the property - 6 Crores

B = Maximum permissible under the scheme - 7.50 Crores

C = 75% of the total rent receivable for the residual period (maximum of 10 years) = 75% of 2.40 Crores = 1.80 Crores

D = Income wise, the calculation is as follows:

Total income per month = 2.75 Lakhs

Maximum EMI/NMI ratio = 60% = 1.65 Lakhs

The EMI per lakh works out to 1,347. Therefore, the total loan eligibility for an EMI of 1.65 Lakhs = 1.22 Crores.

The total eligibility works out to 1.22 Crores at 10.85% for 10 years, with an EMI of 1,64,279.