SBI Home Loan New Scheme 2014

State Bank of India is one of the most trusted banks in India. Owing to its nationalized status, it has a loyal customer base. Along with this, it has been voted in AWAAZ Consumer Awards as “The most preferred home loan provider” and “Most preferred bank award” in a survey conducted by TV 18.

SBI home loans are considered a solid foundation of transparency and trust, which are some of the main aims of this bank.

Advantages of SBI home loan

Customers always prefer SBI compared to other banks for home loans, owing to its advantages. Some of them are:

• There are many benefits for a customer as SBI home loans are a package of different facilities.
• SBI home loan interest rates are very low, which initiates savings at the borrower’s end.
• The interest rate for SBI home loans is charged on daily reducing balance.
• There are no hidden costs or administrative charges for any SBI home loan.
• In case the customer wants to prepay the home loan before term expiry, there is no prepayment penalty charged.
• The customer can avail the loan from any of the 15,350 branches of SBI across India.

Different SBI schemes for home loan

In order to fulfill the diverse needs of a customer, many SBI schemes have been formulated for home loans. Some of the main SBI home loans available are:

SBI Yuva Home Loan

This home loan is tailor made especially for youths.

Eligibility	Repayment	Interest rate
Age: 21 years to 45 years Income: Minimum net income should be Rs. 30,000	The interest applied on the SBI home loan is payable during the first 36 months. The actual monthly EMI starts after 36 months.	Upto Rs. 75 Lakhs - 15 bps above the Base Rate (Spread over the Base Rate that is 10%) and 10.15 % p.a (Effective rate) Above Rs. 75 Lakhs - 30 bps above the Base Rate (Spread over the Base Rate that is 10%) and  10.30% p.a (Effective rate)

Her Ghar

This SBI home loan is especially meant for the women.

Eligibility	Loan amount	Interest rate
The woman should be the sole applicant or first co-applicant of Home Loan. The property proposed to be financed should be either in the sole name of the woman borrower or she should be the first owner in case of joint ownership.	Maximum 30 years or to the age of 70, whichever is early.	Upto Rs. 75 Lakhs - 10 bps above the Base Rate (Spread over the Base Rate that is 10%) and 10.10 % p.a. (Effective rate) Above Rs. 75 Lakhs - 25 bps above the Base Rate (Spread over the Base Rate that is 10%) and  10.25% p.a. (Effective rate)

SBI Realty

This SBI home loan is meant for the construction of a house or purchase of a plot.

Loan amount	Repayment	Interest rate
Rs. 10 Crores	Up to 15 years	Upto Rs. 75 Lakhs - 15 bps above the Base Rate (Spread over the Base Rate that is 10%) and 10.15% p.a (Effective rate) Above Rs. 75 Lakhs - 30 bps above the Base Rate (Spread over the Base Rate that is 10%) and  10.30% p.a (Effective rate)

The above mentioned SBI home loans are the primary ones; however, apart from these, you will also find SBI home loans for NRIs, tribal areas and many others. 

Financial institutions offering special home loan rates for women

As women are getting economically independent, they are increasing participation in financial decisions and planning, whether it concerns themselves or their family. Financial awareness is no longer a male bastion. Not surprisingly, home financiers have come up with special schemes for woman borrowers of home loan products. Prominent among them are State Bank of India (SBI), LIC Home Finance, Tata Capital Housing Finance (TCHF) and Dewan Housing finance Corporation Ltd (DHFL).  

The country's largest bank, SBI has launched a special home loan scheme offering concessional rate to women borrowers. Under this scheme, it offers women borrowers loan at 10.10 per cent for loan up to Rs 75 lakh and 10.25 per cent for loan above Rs 25 lakh. These rates are 5 basis points lower than other customers. In simple terms, if loans up to Rs 75 lakh are offered to new borrowers at 10.15 per cent, for women borrowers, the concessional rate would be 10.10 per cent. This scheme is valid for women borrowers in a number of ways: as sole applicants; the first of the co-applicants; the sole or the first of the co-owners of the property.

The TCHF has a discount scheme, under which it offers women home loans of up to Rs 40 lakh at a discounted rate of 10.15 per cent vis-a-vis its present rate of 10.50 per cent for other borrowers. Thus, women borrowers can save as much as Rs 864 a month on a 15-year loan and Rs 935 a month on a 20-year loan. To avail this facility, the property must be in the single/joint name of the borrower and the borrower must have sufficient income to service the EMIs.

As woman borrower, your choice should not be limited to a few housing finance institutions. Home loan is a very competitive market these days, so enquire about home loan interest rates of all financial institutions for women, and you may end up getting the lowest rate.

Similarly, LIC Housing Finance has a special scheme ‘Bhagya Lakshmi’ forwomen borrowers where it offers them a fixed rate of 10.10 per cent for loan up to Rs 75 lakh.

Dewan Housing finance Corporation Ltd (DHFL) also offers a home loan product exclusively for women customers, the ‘DHFL Home Loan for Women’. Under the scheme, all single/first woman applicants who are also the sole/co-owners in the property are eligible for a 25 bps (0.25 per cent) waiver on the rate of interest. As Rakesh Makkar, president, DHFL, puts it, the special loan for women is a part of the company’s endeavour to empower women by encouraging them to invest/buy a home.                                                                                           

Going by the above trends, it is clear that it helps to be a woman. Already, in several states, the stamp duty for registration of property is lower for women. For a male property-buyer too, it makes sense to register the property in his wife’s name as well as make her first co-applicant in the home loan.

State Bank of India to Hold Home Loan Rates

Among the several loans offered by banks and housing finance companies in India, SBI home loan products are the most preferred options among home buyers. Being the apex financial institution in India, State Bank of India disburses a wide range of standard as well as personalized home loans to interested customers. With a range lying in between Rs.5 Lakh to over Rs.5 Crores, SBI aims at catering to the housing finance needs of people from all walks of life. All it takes is a little homework and one can easily secure ideal home finances at the best SBI home loan interest rates.

With several lenders revising their interest rates, while keeping the interests of their valued customers in mind, the mortgage market is experiencing a gradual growth lately. However, when it comes to SBI home loan deals, customers might be a bit disappointed by the recent decision taken by the topmost public sector financier in India. In a recent public meet, a senior official of the bank announced that SBI will retain its home loan interest rates for an undisclosed period of time.

The Reserve Bank of India (RBI), the Indian banking watchdog, lately kept its policy rates stable. However, in a recent announcement, the RBI lowered the borrowing limit for banks from the overnight facility. The lowering of the borrowing limit is generally followed by a rapid rise in the cost of funds for the lenders. Though the cost of funds is likely to go up in the near future, there will certainly be no change in the SBI home loan interest rates. However, there are some banks that have raised their lending rates, following the reduction in the borrowing limits, which is likely to increase the demand of SBI home loan deals in the market.

Being the most preferred lender in India, SBI still aims at providing maximum benefits to the customers by offering stable interest rates, personalized tenure, flexible repayment terms and superior customer service. As of now, the State Bank of India is charging an interest rate of 10.10% p.a. for a SBI bank home loan up to Rs.75 Lakhs from woman borrowers. However, for the amount of home loan exceeding Rs.75 Lakhs, the bank is now charging an interest rate of 10.25% p.a. Last month, SBI also decided to extend its special home loan scheme for women for an indefinite time period (earlier valid till 31st March), seeing the tremendous response it received all across the nation. On the other hand, from the regular borrowers, SBI demands an interest charge equivalent to 10.15% p.a. of the SBI bank home loan amount to Rs.75 Lakhs and 10.30% p.a. for amount above Rs.75 Lakhs.

Being categorized on the basis of the amount borrowed by an individual, home loan SBI can serve every distinct purpose of the borrower, ranging from new home/plot purchase or constructing a new home, to renovating or expanding a current residential property. One just needs to be careful while comparing the SBI bank home loan products with personal need and wants for making a wise selection to fulfill the long cherished dream of owning a house.

Ever Reliable Banks with Impressive Home Loan Interest Rates and Advantage for Home Owners

Buying a home is once in a lifetime opportunity for a large majority of people. Due to easy availability of home loans, a vast majority of people have finally cherished their long pending dream of owning a house. While home loans are now a common financial instrument offered by virtually all private and public sector banks, some banks continue to be the proffered choice amongst users due to their easy loan approval process, lower interest rates and no hidden charges. A home loan applicant is recommended to always compare home loan quotes from multiple banks before selecting the best suitable bank for his or her home loan. Let us look at some of the reliable and popular banks with impressive home loan interest rates and an overall positive track record.

Five Reliable and Popular Home Loan Banks: 

Public sector banks are largely preferred when it comes to home loans as they offer slightly lower rate of interest. However the slow approval rate and sluggish nature of work in public sector banks usually make people embrace Non-banking financial companies and popular private sector banks who are known for their quick loan approval process and professional dealing. Here is a list of the top five reliance banks and non banking financial companies that users prefer when it comes to applying for home loans.

State Bank of India: 

State Bank of India popularly known as the SBI is the largest public sector bank of the country and one of the popular banks when it comes to home loans. Although the heavy rush of home loan applications and slow loan approval system can sometimes mean a longer waiting period for loan approval, lucrative interest rates makes SBI a popular choice with home loan borrowers. State Bank of India charges a minimal processing fee of Rs 1000 or 0.25% of the loan amount for loans up to Rs. 2 Lakhs. For loans between Rs. 25 Lakhs to Rs. 75 Lakhs, the bank charges a flat processing fee of Rs 6500. Loans higher than Rs. 75 Lakhs come with a loan processing fee of Rs. 10,000.

LIC Housing Finance: 

If any non banking financial company comes close to public sector banks in terms of home loan popularity, LIC Housing Finance tops the list. One of the unique advantages of LIC Housing Finance is the option of having a fixed interest rate for a period of five years. LIC Housing Finance offers a discount of 0.25% on home loan interest rates in case the borrower has an insurance or investment policy with LIC more than Rs 15 Lakhs.

Axis Bank:

Axis Bank is a popular choice for home loans due to its zero pre payment charges and quick loan approval mechanism. Axis Bank also charges quite competitive loan processing charges which are up 1% of the total loan amount of a minimum of Rs. 10,000.

HDFC Bank: 

HDFC bank is a popular choice for home loans for private sector banks. HDFC bank has been a pioneer in the home loan market and has active tie ups with good and respectable builders across the length and breadth of India. HDFC bank charges 0.5% f the loan amount towards processing fee charges excluding cess and service tax.
Click here to know more on home loan provided by HDFC Bank

Punjab National Bank: 

Punjab national bank is a popular public sector bank offering lucrative home loan interest rates. A large number of people are still biased towards public sector banks when it comes to home loans and roughly so as public sector banks offer slightly lower rate of interest and lower loan approval charges. Punjab National Bank charges 0.5% of the loan amount towards loan processing charges for home loan up to Rs 3 crore.