State Bank Of India - 10.90% for Loan Against Property - Loan Against Residential Property

State Bank of India Loan Against Property:

State Bank of India is the most popular Loan against Property lender in the country.

SBI Loan against Property is ideal for all salaried, self-employed, non-professional LAP seekers.

Borrowers can avail SBI Bank Loan against Property for business expansion, child education, expenses such as wedding or travel, or medical emergency with easy

Documentation, and quick processing.

SBI Loan Against property interest rate begins at 10.90%-11.30% p.a.*

Interest Rate	10.90%-11.30% p.a.*|
Tenure	Up to 15 years
Processing Charges	Flat Rs 1,000 (during festive campaign between 4th Oct 2022 to 31st Mar 2023)

 

SBI Loan Against Property (LAP) Interest Rates

Credit Score	Interest Rate (p.a.)
>=800	10.90%
750-799	11.00%
700-749	11.10%
650-699	11.20%
550-649	11.30%
NTC/NO CIBIL/-1	11.10%

 

SBI offers loan against property to meet your business as well as personal needs against the mortgage of your existing residential or commercial property.

Taking a loan from SBI has the following benefits:

1. Interest calculated on daily reducing method

2. Complete transparency in account operation

3. No hidden fees or administrative charges

4. NIL prepayment charges for floating rate loan

 

Factors Affecting SBI Loan against Property Interest Rates

Loan amount: 

Property loan rates in SBI depend upon the loan amount you apply.

You can get a minimum loan of ₹ 25 Lakh from SBI.

 

Your Net Monthly Income: 

Income helps you in identifying your rate of interest.

Higher the income, higher will be your repayment capacity increasing your eligibility for higher loan amount.

 

Type of loan opted for: 

SBI offers differential rates for customer’s different profiles and also fixed and floating rate schemes.

Loan against property interest rates may be higher or lower for special loan products.

 

Type of property: 

Typically, loans against prime residential properties are easier to get and can be availed at the lowest rates compared to loans against commercial and industry properties.

 

Your profession:

 SBI may charge a higher interest rate on a mortgage loan to a salaried person than a self-employed professional or a businessman.

A self-employed professional or businessman is expected to deploy loan proceeds for productive purposes in his occupation or

business compared to salaried people who will most likely take a mortgage loan for his personal purposes.

 

SBI Loan Against Property Documents Required:

For Self-Employed:

1. Filled up loan application form

2. 2 Passport Size Photo

3. ITR of last 3 years

4. Identity Proof - Passport/ Driving License/ Voter ID/ PAN

5. Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport

6. Business proof such as VAT/ service tax registration, incorporation details in case of companies, business address proof, profit and loss account and balance sheets certified by CA, copy of partnership deed and proof of business existence and business profile

 

For Salaried employee:

1. Filled up loan application form

2. 2 Passport Size Photo

3. ITR of last 2 years

4. Identity Proof - Passport/ Driving License/ Voter ID/ PAN

5. Residential Address Proof - Leave and License/ Registered Rent Agreement/ Utility Bill (up to 3 months old), Passport

6. Income Documents – 6 months’ pay slip, 2 years Form 16, 6 months bank statement showing salary credit and any EMI debit

 

Property documents:

1. Registered Sale Deed/ Conveyance/ Lease Deed

2. Past Sale Deeds Chain (each transaction in respect of this property since first allotment

3. Latest House Tax Return/ Receipt

4. Approved Building Plan from Municipal Corporation

 

Loan against Property Top up, Transfer in SBI:

SBI offers mortgage loan balance transfer from another bank, subject to your meeting other eligibility criteria of SBI at an affordable interest rate, higher loan amount and convenient loan tenure.

SBI loan against property balance transfer helps you make your loan repayment convenient and opt for a beer customer service.

Current loan against property balance transfer rates in SBI are 8.40%. Along with that, you can also avail of additional top-up on your loan against property.

 

Loan against Property SBI Products:

1. SBI Loan Against Property 

The minimum SBI Loan Against Property amount provided is Rs.10 Lakhs

The maximum SBI Lap amount offered is Rs.7.5 Crores based on the location of the property that is mortgaged.

The minimum loan tenure is five years, while the maximum loan tenure is 15 years based on the eligibility of the applicant.

The LTV ratio for loans up to Rs.1 crore is 65%. The LTV ratio for loans between Rs.1 Crore and up to Rs.7.5 Crores is 60%.

 

2. SBI Loan Against Mortgage of Immovable Property 

Rs. 10 Lakhs is the min loan amount in this case.

Depending upon the property's location, the maximum loan amount that is offered is Rs.5 crores.

In the case of Non-Urban Centres, the cap on the loan amount is Rs.1 crore. For other BPR centres besides the primary Indian metros, the cap on the loan amount is Rs.2 crores.

In the case of semi-urban and rural areas, this scheme is unavailable.

The LTV depends upon the loan amount. For loans up to Rs.1 crore, the LTV is 65%. For loans up to Rs. 5 crores and above one crore is 60%.

180 months is the maximum repayment tenure of this loan.

 

3. SBI Rent Plus 

This loan is provided based on the future rentals that are expected on a commercial property or residential property.

You can get up to 75% of the value of the mortgaged property as loan according to the valuation provided by an approved SBI valuer.

You can get a loan of 75% of the expected rent for the remaining lease or loan period, whichever is earlier.

The maximum loan amount is subject to a cap of Rs.7.5 crores in metros and Rs.5 crores in non-metro cities.

The maximum loan repayment period is the residual period of the lease or 10 years, whichever comes earlier.

 

Frequently Asked Questions:

 

Q. What is SBIs loan against property interest rate?

Ans. SBI offers loan against property at a rate of 10.90%-11.30% p.a.* with the lowest EMI.

If you are currently paying a higher interest rate than SBI rate, you can opt for a balance transfer of loan to SBI.

 

Q. How to increase my eligibility on SBI Mortgage loan?

Ans. If your spouse or family member is earning well, you can make your spouse or family member the co-applicant for your loan.

The combination of both of your income will help you in increasing your eligibility to get a loan.

 

Q. Can I foreclose my Mortgage loan? What are the charges applicable?

Ans. Yes, you can foreclose your SBI loan against property anytime you want with nil foreclosure charges.

 

What is the maximum loan tenure I can opt under SBI Property loan?

Ans. SBI offers a maximum tenure of 15 years to repay your loan.

You can choose the tenure for your LAP loan as per your convenience and repayment ability.

 

What is the benchmark rate applicable for Mortgage loan?

Ans. The benchmark rate applicable for property loans in SBI is RLLR

 

Can I transfer my LAP from another bank to SBI?

Ans. Yes, Bank gives you the facility to transfer your existing loan with a hassle free process.

Loan balance transfer to SBI offers you to pay lower EMIs and save money and enables you to choose better customer service, if you are not satisfied with your existing bank. 

 

What is SBI mortgage loan processing fees?

Ans. The loan processing fee charged is 1.00% of the total loan amount.

 

What security do I need to provide for SBI Mortgage Loan?

Ans. SBI requires a registered mortgage of the property against which the bank will provide you a loan.

 

SBI Loan Against Property News - March 2023:

 

2021-07-07: SBI offers to revamp loans for personal segment borrowers

State Bank of India (SBI) has announced offering restructuring of loans to its eligible personal segment borrowers who availed personal loans, home loans, loans against property, Xpress credit, education loans and auto loans

Before April 1, 2021.

 

2021-06-18: SBI kept its Marginal cost of lending rates unchanged

State Bank of India kept its MCLR rate unchanged with effect from 15 June 2021.

The overnight and one-month MCLR is 6.65%. The three months and six months MCLR is 6.65% and 6.95%, respectively. MCLR for one year, two years and three years stand at 7%, 7.20% and 7.30%, respectively.

 

2021-05-21: SBI net profit rises 81% YoY

State Bank of India’s quarterly net profit rose 81% year-on-year to Rs 6,451 crore for the three months ended March.

The bank’s total domestic advances rose 5.67% year-on-year to Rs 21.82 lakh crore.

Retail advances which include home, LAP, personal, two-wheeler, car, gold, education and doctor loan stood at Rs 8.7 lakh crore.

Further, total domestic deposits for SBI which include FD and RD rose 14.26% from a year ago to Rs 35.7 lakh crore.

The current account and savings account deposits rose 16.73% year-on-year to Rs 16.47 lakh crore.

 

2021-04-27: SBI introduced video KYC on mobile banking app YONO

With an aim to improve the customer experience and improve the loan and investment portfolio, SBI introduced KYC on its Mobile banking app YONO.

The digital initiative, powered by AI and Facial Recognition Technology, is a contactless and paperless process.

 

2021-03-21: SBI recorded digital transactions as high as 67%

State Bank of India has recorded a considerable increase in its digital transactions.

The bank reported 67% digital transaction in the post Covid period from earlier 60% in the pre Covid times.

The increase is attributed to hike in e-commerce due to covid induced lockdown which restricted the movement.