Planning to Take a Home Loan? Why Should You Consider SBI Home Loans?: Are you looking for the best housing loans? Is SBI a suitable loan option? Here’s what you should know:
Let’s know what home loans are?
Home loans are secured loans provided by several financial institutions and banks or credit societies to borrowers who need finance but want to buy a house of their own.
Many of us desire to get a dream house someday and fulfill these demands, and home loans are the best options on which one insists.
Why SBI home loan?
SBI provides various loans, including home loans, personal loans, doctor loans, gold loans, etc. As in today’s time, the real estate sectors are on hype, and so do people who like buying top graded houses.
To support and encourage them, several banks have taken steps in reducing the rates charged by them, and SBI is one of them.
Features of taking home loans:
The best benefit of opting for an SBI home loan is the income tax deduction on interest and principal repayments.
The home loan interest rates are usually lower than other loans. One can get a top-up on the existing home loan at lower interest rates if you come across a cash crunch. This rate is less than personal loans to solve the issues.
Due diligence of property
Banks often check the documents legally. They follow legal methods to approve the home loans, and proper checks are done for the property with valid documents. It prevents the scam from the borrowers. Once the bank approves your property and house, it’s safe.
Long repayment tenure
Unlike other loans, home loans come with long tenures of repayment. These repayments are the amount one has to pay back to the lenders. It ranges from 25 to 30 years—more the repayment tenure less the monthly EMI’s, which reduces the burden of ridding off huge amounts.
No prepaid penalties
When there is a floating rate home loan that you have opted for, you get an opportunity to pay a lump sum before getting due if money is in your hand. There are no penalties for this kind of prepayment. It helps clear dues at the earliest rather than as authorized by the lenders.
Balance transfer facility
One can transfer the loan to other lenders, maybe because of interest rates, service charges, etc.
What is the eligibility for a home loan?
- Both residents of India and non-resident Indians can apply for a home loan.
- The minimum income must be Rs 15,000 or above.
- The minimum salary of the co-applicant should be Rs 10,000.
- Your age should be between 18 to 70 years.
What are the documents to acquire the loan?
- Proof of Identity.
- Passport /Voter ID/Driving License/PAN.
- Proof of Address.
- Telephone Bill/Electricity Bill/Passport/Bank Statement/Passbook.
Steps to use SBI Home Loan Eligibility Calculator
You can use SBI Home Loan Eligibility Calculator to calculate home loan eligibility using the steps mentioned below:
- Go to the site.
- Enter information such as your total monthly income, tenure of the loan, your existing loan commitments, and Interest Rate.
- Finally, you can know about your eligibility.
Factors Affecting SBI Home Loan Eligibility
- Your age is one of the crucial factors while determining eligibility.
- The current financial status of the applicant
- The minimum salary or annual business income of the applicant
- The applicant’s credit score is also a major factor as credit score shows the worth of repaying the debts.
- Applicants’ existing liabilities or other loans also affect their eligibility.
How to improve loan eligibility?
Select a Longer Tenure
Choosing a longer period gives you an edge as the EMI will be less, ensuring your loan repayment on time. It would help if you chose the home loan tenure based on your present financial obligations, as a shorter home loan tenure means that you would have to pay high monthly EMIs, which may lead to home loan defaults.
Open an Account with the Lender You Have Chosen
Build a relationship with your lender to get benefits for a longer period. Hence, it would help to start the loan procedures by making an account when choosing a lender.
Repay Your Debts on Time
If you are looking to set a good credit score, you can start with paying off your previous debts. It will improve your home loan eligibility.
Add Additional Income Sources
One can mention your additional income and state the sources for speeding up your eligibility.
- For 30 lacs: 6.80%
- For Rs 30 Lacs and above to Rs 75 lacs: 7.05%
- Above Rs 75 Lacs: 7.15%
- The gains were 7.15%, 7.40%, and 7.05%, respectively.
One can also opt for a Home loan Balance Transfer, which means transferring the entire unpaid principal loan amount to another bank for low-interest rates. You can also choose the HL BT facility for changing other home loan provisions.
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