State Bank of India popularly known as SBI is a government-owned banking institution having its headquarter in Mumbai, Maharashtra. SBI benefits its customer by providing them with a huge range of banking products and services. SBI Loan against Property is one of the popular SBI products.
SBI Loan against Property is a secured loan. You can keep your existing asset as collateral with the bank and can avail loan to meet the financial need of the customer.
Kinds of SBI Loan against Property
SBI Loan against Property are of 2 types-
- Loan Against Mortgage of Immovable Property
- Rent Plus
Loan against Mortgage of Immovable Property
This loan is can be used by the customer to meet their personal needs- child’s education, medical help etc. Any speculative or business purposes are not allowed to apply for this loan.
Features
- Applicants can be salaried individual and self-employed working in IT companies and Non-Resident Indian (NRI) owing any residential property either in his name or in the name of his spouse/parents/siblings/ children.
- Minimum net income of the applicant must be Rs. 25000.
- With proper proof of income, regular income from all sources will be considered for the loan eligibility of the applicant.
- Borrower’s spouse/children/sibling/parents can join as co-borrower or guarantor.
- The ratio of Net Monthly Income and Equated Monthly Instalments must not exceed the limit of 50%.
- Minimum and Maximum loan amount are Rs. 10 Lacs and Rs. 5 crores respectively.
- For cities under Municipal Corporations like- Mumbai, NCR, Pune, Ahmedabad, Chennai, Bangalore and Hyderabad, the maximum loan amount is Rs. 5 crores.
- For non-BPR urban areas, the maximum loan amount is Rs. 1 crore.
- For other BPR areas, the maximum loan amount is Rs. 2 crores.
- The maximum repayment period is 120 months.
- 1% is the processing fee.
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 maximum LTV ratio:-
| Limit of Loan | LTV |
| Up To Rs. 1 crore | 65% |
| Above Rs 1 crore and below Rs. 5 crore | 60% |
Rent Plus
This loan is meant for the owners of commercial/residential properties to meet their financial needs.
Features
- The owners of this properties can rent their properties to individuals working in MNCs/Large and medium companies/Banks.
- The properties should not be leased to Colleges, Schools, Hospitals, Orphanages, Old age homes, and any other social sector infrastructure.
- Minimum loan amount is Rs.50000 and maximum loan amount is Rs. 7.5 crores for metropolitan cities and Rs. 5 crores for non-metropolitan cities.
- The margin reserved is 25% of the loan amount.
- Maximum time of loan repayment is 10 years.
- Applicant any of the repayment methods- Post Dated Cheques, ECS.
- 2.02% is the processing fees.
Interest Rates of SBI Loan against Property
For Loan Against Mortgage of Immovable Property:-
| Loan Against Mortgage of Immovable Property |
| Amount of Loan | Rate of Interest |
| UptoRs. 1 crore | 1.60% above 1 year MCLR |
| Above Rs. 1 crore&uptoRs. 2 crores | 2.10% above 1 year MCLR |
| Above Rs. 2 crores&uptoRs. 5 crores | 2.50% above 1 year MCLR |
