SBI Regular Home Loan
SBI Regular Home Loan is a term loan, or a home loan with a tenure of 30 years offered by the State Bank of India. The Regular Home Loan isn’t a differentiated product. It can be availed by anyone who falls within the eligibility criteria.
Why should you take it?
The advantages of the SBI Regular Home Loan are linked to the advantages of the bank itself.
- It’s provided by a trusted Government sector bank
- They generally have a lower interest rate compared to other banks.
What should you consider?
The documentation process is rigorous and therefore takes time.
SBI MaxGain
SBI MaxGain is what is called a ‘home saver’ loan. With this, the loan amount is sanctioned as an overdraft. You’ll be able to park surplus funds into this overdraft account, and that’ll help you reduce your interest burden. Additionally, the savings from the reduced interest burden can also be withdrawn from the overdraft account, if required.Ideally, the SBI MaxGain loan is perfect for someone who receives financial bonuses on a regular or semi-regular basis. For instance, a quarterly or an annual bonus.
Why should you take it?
Let’s look at some of the reasons why you may want to consider MaxGain:
- It allows you to withdraw funds parked in the account as and when required, without any penalties.
- The savings from the reduced interest rate from parking funds is another reason to consider MaxGain.
- Most medium to large companies offer regular bonuses; this seems to be an ideal way to spend your bonus if you’re really committed to owning a house.
What should you consider?
Some things to keep in mind are:
- Whether you have a variable income component, or receive financial bonuses from your company.
- In addition, it helps if you have monthly savings after payment of EMIs and all other liabilities.
- It has a higher rate of interest than other home loans from SBI.
- If you’re a self-employed professional or a business owner, this might not be the right product for you. Sure, the liquidity aspect is a positive, but there’s no guarantee of regular windfalls.
SBI Flexipay
SBI Flexipay is a home loan product from SBI that’s intended for young, salaried individuals. You are given an option to pay only the interest during the moratorium period, and subsequently pay moderated EMIs.The product is structured specifically for a young individual. There is, in fact, a maximum age limit for applying for applying for the loan (45 years), although repayment is possible upto the age of 70 years. Keep in mind, you’ll need a minimum of 2 years work experience before you can apply for this loan. Additionally, you can only apply for it if you are a salaried individual.
Why should you take it?
A home loan need not be a significant burden in the early stages of your career. The possibility of paying only the interest means that you can invest in a home in your 20s. If you expect to have a stable income growth in your career, this is a perfect investment.
What should you consider?
The biggest thing is this: everybody expects to have a stable growth in their income, but it depends on a lot of factors beyond your control. Think very hard before opting for this unless you want to end up with an unserviceable monthly EMI.
Know MoreSBI NRI Home Loan
As the name suggests, the NRI Home Loan is for Non Resident Indians (NRIs) or Persons of Indian Origin (PIO). If you’re an NRI or PIO, you can use the loan to purchase a house, buy property or renovate an old house.As mentioned above, this is for NRIs and PIOs. If you’re an NRI you’ll need to provide a valid passport and visa, and if you’re a PIO you need to submit a PIO card.
Why should you take it?
NRIs can only make purchases for land and property in India through banking channels; this necessitates the use of a home loan. The big advantage with the SBI NRI home loan is that they have branches in over 20 countries, allowing you to complete formalities at a branch in the country in which you’re located.
What should you consider?
One of the big factors that you should consider is whether this product is the right one for you vis a vis the remaining products that SBI offers. While NRIs or PIOs require to go through banking channels to purchase land or property, there is no requirement to only avail the NRI product.
Know MoreSBI Privilege Home Loan
SBI Privilege Home Loan is a product targeted at government employees. This includes employees of Public Sector Undertakings, State and Central Governments or any one with a pensionable service. It is for anyone who works in the Government service, not including defence personnel.
Why should you take it?
If you have a Government job, you should consider this for the following reasons:
- The EMI burden after retirement will be lower because it is capped at 50% of the current net monthly income.
- While the home loan tenure is capped at 30 years, the repayment period is extended to 75 years.
- Another advantage of this scheme is that there is no processing fee.
SBI Shaurya Home Loan
SBI Shaurya Home Loan is a loan for defence personnel. It is similar to the SBI Privilege Home Loan, except that this is differentiated specifically for defence personnel.Only defence personnel can apply for the Shaurya home loan.
Why should you take it?
SBI offers lower rates of interest and lower EMIs after retirement because it is capped at 50% of the current net monthly income. Additionally, the repayment can be extended to 75 years, even though the tenure is 30 years.
SBI PAL
PAL stands for Pre Approved Loan. This is basically a sanction from the bank guaranteeing for a loan even before you settle on property. You must, however, keep in mind that the loan is conditional on property approval. It’s ideally for people who would rather have a complete understanding of their financial situation before they settle for a property. This way, you’ll know exactly how much you can borrow from the bank, and how much you need to make available from other sources.
Why should you take it?
It’s a great idea to take a pre-approved loan if you want to know exactly what your financial position is. This will help in figuring out your budget for the property and gives you a strong position to negotiate with sellers.
What should you consider?
With the SBI Pre Approved Loan, there’s a validity period of between 3 and 6 months within which you have to identify your property.
Know MoreSBI Realty Home Loan
Technically, the Realty Home Loan is not really a home loan but a loan for purchase of land and construction of a house. Primarily, obviously, it’s for anybody who wants to build their own house.
Why should you take it?
To purchase a plot of land, you cannot avail of a home loan, and this is the loan product you can avail. SBI also offers you the ability to take a home loan on top of the Realty Home Loan for the actual construction of the house.
What should you consider?
The SBI Realty Home Loan necessitates that you build the house within 5 years of the loan being sanctioned. The repayment period is ten years, which is less than the usual 30 years for home loans. If you’re set on building your own house, this is the option for you.
Know MoreSBI Bridge Home Loan
SBI Bridge Home Loan is for anyone who wants to move to a bigger house or a different location. The SBI Bridge Home Loan is for someone who knows that there’s going to be a lag between the sale of their existing property and the actual money coming into their account. Hence, it’s known as a Bridge Loan.
Why should you take it?
It gives you the benefit of negotiating without a hassle for your existing property. For example, if you need to make the down payment on your (new!) dream home, you wouldn’t need to agree to sell to the first person that makes the money available.
What should you consider?
The loan tenure is only upto two years, so in a literal sense it is only a bridge loan. You can’t finance the purchase of your new home with this.
SBI Tribal Plus
SBI Tribal Plus is a home loan for people who live in tribal areas. It can be used for the purchase of a new plot of land or a house or an existing house not older than 10 years. This scheme is open for tribals from the areas of the North East and areas around Chandigarh, Bhubaneshwar, Patna, Lucknow, and Bhopal. Even if you’re not currently living in these areas, you can avail a loan to purchase a home in your native village.
Why should you take it?
If you’re eligible for the scheme, it’s a no brainer. It offers the lowest amount of interest and low processing charges. In addition, no security is required and there are no pre-payment charges.
What should you consider?
The tenure of repayment is a maximum of 15 years, less than a regular home loan.
SBI Earnest Money Deposit
The SBI Earnest Money Deposit is for you if you’re looking to make a booking to purchase a plot or a built up house from a Government Housing body, like PUDA or HUDA.
Why should you take it?
It’s better to avail this product than to tie up your own personal funds for booking a plot. If your application is unsuccessful you can pay it back when the refund is made by the housing board. If your application is successful, you have to pay it back as a lump sum when you avail an SBI home loan.
What should you consider?
The rate of interest is pretty high on this product, with the same rate for everyone.
SBI Reverse Mortgage Loan
It’s a scheme to allow senior citizens to supplement their income if they own a house. The bank makes payments to the borrower at a regular period. The loan is usually repaid from the proceeds of the sale of the house.
Why should you take it?
If you are a senior citizen and you have a home, it makes sense to receive regular payments for your investment, without actually sacrificing your house.
What should you consider?
The loan can be considered foreclosed for various reasons, including the borrower not having lived in the property for a year. These are some things in fine print that need to be examined very carefully.
SBI Commercial Real Estate Home Loan
It’s a loan for people who own two or more houses or apartments and want to purchase another.
Why should you take it?
SBI only offers this product if you already have existing home loans for two houses or apartments.
SBI Loan Against Property
As the name suggests, it’s a loan against existing property that can be used for anything except for business or speculative purposes.
Why should you take it?
If you have a good relationship with your SBI branch, it might be advantageous for you to seek this loan from SBI.
What should you consider?
This loan offers no clear cut advantages over any other home loan product offered by SBI.
The interest rate options for you depends on your loan amount