Why SBI Loan Against Property?
State Bank of India popularly known as SBI is the largest public sector banking institution in India. A wide range of banking services and products are provided by SBI. One of the popular SBI Product is SBI Loan against Property.
There can be a situation where you are in urgent need of money. To take care of this need, SBI has come up with Loan against Property. In this kind of loan, you can avail a loan by keeping your existing property as security with the bank. SBI guarantees quick loan approval and disbursal process.
Features of SBI Loan Against Property
- Goal – This goal of this loan is to provide financial assistance to individuals who have monetary requirements. SBI gives loan against securities like commercial/residential property of the borrower.
- Facility of Overdraft – Using this facility, you can use up to an approved limit of the loan amount and further pay the interest only on the amount used.
- No Processing Charges – In order to process the loan, State Bank of India does not charge anything. Charges which are levied are mentioned clearly from the beginning.
- Repayment option – You can opt for EMIs or overdraft facility to repay the loan.
Types of Loan against Property
- Loan against Mortgage of Immovable Property
- Rent Plus
Eligibility Criteria for SBI Loan against Property
- Age:- Minimum- 20 years, Maximum- 70 years
- Income- Rs. 25000 (or Rs. 3 lacs per annum)
- Amount of Loan:- Minimum- Rs. 10 lacs, Maximum- Rs. 7.5 crores (depending on the property location)
- Loan Tenure:- Minimum- 5 years, Maximum- 15 years
- Minimum job experience- 5 years
- Minimum experience in business- 2 years
- Loan to Value Ratio- Up to 65%
- Minimum FOIR- 0.65
- Minimum CIBIL score- 650
Documents Required
Salaried Individual
- Duly filled application form.
- Passport size photograph
- ID proof- AADHAR card, PAN card, Driving License.
- Residence proof- Any latest utility bill like Electricity bill, Gas bill. Leave and License/ Registered Rent Agreement, Passport.
- ITR of the last 3 years.
- Income Documents – 6 months salary slip, Copy of 2 years Form 16, 6 months bank statement.
Self-Employed Individual
- Duly filled application form.
- Passport size photograph
- ID proof- AADHAAR card, PAN card, Driving License.
- Residence proof- Any latest utility bill like Electricity bill, Gas bill. Leave and License/ Registered Rent Agreement, Passport.
- ITR of the last 3 years.
- Business proof – VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, a copy of partnership deed and proof of business existence and business profile
Property Documents
- Latest House Tax receipt.
- Past Sale Deeds Chain (each transaction with respect of the mortgaged property since the first allotment)
- Lease Deed/Conveyance/Registered Sale Deed
- Documents showing Municipal Corporation approval of building plan
Rate of Interest for SBI Loan Against Property
| Rate of Interest | 10.30% – 11.75% |
| Lowest EMI | Rs. 1,093 per lakh |
| Processing Fees | Up to 1.00% |
| Pre-payment Charges | Nil charges for floating rates |
| Amount of Loan | Interest Rates |
| Upto Rs. 25 Lakh | 10.30% |
| Rs. 25 Lakh – 1 Cr | 10.80% |
| Rs. 1 Cr – 2 Cr | 11.25% |
| Above Rs. 2 Cr | 11.25% |
LTV Ratio
Loan To Value (LTV) is the ratio which measures the % of a property’s value which is mortgaged against a loan.
The following table shows the LTV ratio-
| Amount of Loan | LTV Ratio |
| Up to Rs. 1crs | 65% |
| Rs. 1 cr & up to Rs. 7.5 crores. | 60% |
EMI Calculator
You can repay your loan through Equated Monthly Instalments (EMI) which is the fixed amount of money you will pay each month till the end of the loan tenure.
You can use SBI Loan against Property EMI Calculator to compute your EMIs.
The following table will depict the maximum permissible EMI:-
| Net Annual Income | EMI ratio |
| More than Rs. 3 lacs & Less than Rs.5 lacs | 50% |
| More than Rs. 5 lacs & Less than Rs.10 lacs | 55% |
| More than Rs.10 lacs | 60% |
Advantages of SBI Loan Against Property
- SBI loan against Property offers attractive interest rates which are calculated on daily reducing method.
- It maintains complete transparency in account operation.
- This loan is available both for residential and commercial properties.
- The processing charge is very low.
- This loan can be accessed from any of the branches of SBI.
- Applicants can easily reduce their loan burden by prepaying early. No pre-payment penalties are charged.
You can apply online for this loan from the official website of SBI. Follow the process of filling up the form online. A bank representative will contact you for the documentation. After successful documentation, the process of approval will begin.
