Nov 14 2009

SBI Home Loans

homeloans_contactus

Introduction

In this article I am writing about the important details about the SBI home loans. Last week I discussed with one of the SBI guy for getting the more details about the SBI home loans interest rates and other information. It is obvious that SBI provides less interest rates compare to other banks. It would be good idea to switch your home loans to SBI if your current home loan provider taking the highest interest rates. Post your ideas in the comments section. Please subscribe to our future articles here.

Interest Rates:-
First Year – 8%
2nd & 3rd Year – 8.5%
After 3rd Year – It depends on the advanced rate available with SBI as follows :
Floating Interest Rates : 2.75% below sbi advanced rate
Fixed Interest Rates : 1.25 below sbi advanced rate
Interest rates will be reset every five years.
Processing Fees:-
It is Rs.2000 for Rs.500000 – Rs. 1000000. Your loan will fall in this category.
Foreclosure Fees:-
If you are foreclosing the loan before three years, there is 2% penalty on the entire loan amount. If you are doing after three months there won’t be any penalty.
Looking into the above data, switching the loan would benefit you because currently you are paying the 10% interest rates. Processing fees also less compare to other banks. I would suggest you to switch the loan immediately if you are planning. In coming days there will be increase in the home loan interest rates. So, don’t waste time.
Also, talk to the IDBI bank about how much is the fees if you are switching the home loans to other banks. If it is more, there is no point in switching the loans. Please talk to the IDBI who handled your loan application and let me know. We can decide further.

SBI Home Loans Interest Rates

SBI offers home loans in the different category. It is as follows:

  • 8% Interest Rates for the first year.
  • 8.5% for the 2nd & 3rd Year.
  • After 3rd Year – It depends on the advanced rate available with SBI as follows :
    • Floating Interest Rates : 2.75% below sbi advanced rate
    • Fixed Interest Rates : 1.25 below sbi advanced rate
  • Interest rates will be reset every five years.

Processing Fees

Processing fees for SBI home loans is Rs.2000 for the loans up to Rs.500000 – Rs.1000000. It may vary depends on the loan amount.

Foreclosure Charges

If you are foreclosing the loan before three years, there is 2% penalty on the entire loan amount. If you are doing after three years there won’t be any penalty.

Summary

I hope this article will be useful for those who want to take the SBI home loans and compare with other banks. If you have any doubts please post it in the comments section. To receive the future updates on home loans, please subscribe for free email updates here.

Subscribe to our future articles here.


Related posts:

  1. Switching Your Home Loans to Another Bank
  2. Top 5 Rules for Home Loans
  3. Check list for Home Loans
  4. Home Loans Interest Rates Reduced
  5. Information on Home Loans

14 Comments on this post

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  1. Avinash said:

    Correction please.
    “If you are doing after three months there won’t be any penalty.”
    Is it three years ??

    November 15th, 2009 at 5:46 pm
  2. krishnas said:

    Hello Avinash,

    Thank you for pointing the mistake. Yes..it is three years. I have updated the article.

    Thanks,
    Krishna

    November 15th, 2009 at 5:58 pm
  3. Satish said:

    Hello Krishna

    Does the penalty apply for part closure as well ?Any idea of penalty for loans exceeding 10 lakhs?

    Thanks

    November 18th, 2009 at 12:01 pm
  4. krishnas said:

    Hello Satish,

    The rule applicable to all the SBI home loans.

    Thanks,
    Krishna

    November 18th, 2009 at 4:42 pm
  5. Ashish said:

    There is this criteria in SBI for taking Home loan that The max loan amount they provide is 75 % of your property sale deed. The other privatized banks provides 90% or some times 100 %.

    November 19th, 2009 at 1:43 am
  6. krishnas said:

    Hello Ashish,

    Thank you for the information. many banks provide 80% of the property value. I don’t think there is any bank providing the 100% home loans.

    Thanks,
    Krishna

    November 19th, 2009 at 10:26 pm
  7. Vinod Kumar said:

    There is a provision in SBI home loan that if you keep some amount in the SBI saving / fixed deposit a/c and if you have linked that a/c to your home loan account, they will not charge interest on the amount equal to your saving a/c for the home loan.

    Can you please throw some light on this clause ..

    Thanks
    Vinod

    November 21st, 2009 at 3:18 am
  8. krishnas said:

    Hello Vinod,

    I am not sure about this facility in the SBI bank. It would be nice if any of the SBI customer can answer this question.

    Thanks,
    Krishna

    November 21st, 2009 at 8:17 am
  9. Nikhel said:

    Hi, I should really thank you for this post, because what I have noticed is that it’s simple to read and easy to understand and this is what generally I look for. Thank you very much.

    November 23rd, 2009 at 12:45 am
  10. krishnas said:

    Hello Nikhel,

    Thank you for the comments.
    Get free email updates:
    http://www.thinkplaninvest.com/subscribe/

    Thanks,
    Krishna

    November 23rd, 2009 at 1:45 am
  11. Ujaval said:

    Hi,
    Is SBI going to increase home loan rates from April 2010 ? does anyone has any idea about this?

    March 22nd, 2010 at 12:00 am
  12. Prof A. K. Jana (IIT-Kharagpur) said:

    1. Floating Interest Rates : 2.75% below sbi advanced rate
    Fixed Interest Rates : 1.25 below sbi advanced rate

    It is true that the SBAR varies. At what situation, the fixed rate is lower than the floating rate?

    2. What are the important points based on which the people can choose fixed/floating?

    I look forward to receiving your expert opinion.

    Thanks

    April 10th, 2010 at 6:48 am
  13. Hitesh said:

    Dear krishna,

    Doucment says, If I close my loan before 3 years and produce evidence of my income then, there will be no penalty..

    Is it true ? does that mean , I can close my loan at any time ?

    May 11th, 2010 at 5:37 am
  14. Don said:

    Hello Sir,

    Which is the cheapest loan providers bank in India,i mean the interest rates should be very low,iam from mumbai…

    Can the bank give me loan on mine flat, that cost me around 50 lacs,i want 25 lacs loan,so what will be the procedure..

    June 6th, 2010 at 8:00 pm

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