SBI Home Loan - Types of SBI Home Loans

SBI Home Loans, India's largest mortgage lender, offers a wide range of home loans based on the requirement of the customers. It has helped over 30 lakh families to buy their dream home. Spread over 2400+ branches, it has got a team of 1600+ dedicated sales employees. SBI Home Loans is the winner of the 'Best Home Loan Provider' at the CNBZ Awaaz Real Estate Awards 2016 as well.
Update: SBI Slashes Home Loan Interest Rate for March 2021

SBI has slashed the interest rates for its home loans to 6.7% for all loans below ₹75 lakh. However, it is to be noted that this rate is made available only for customers with a good credit score as deemed by the bank, and can be availed only in the month of March. Processing fees will also not be collected during this period. The move is seen as an effort from SBI to rope in as many Home Loan customers as possible before the close of the Financial year.

SBI has also introduced a deposit scheme named SBI Wecare Deposit for senior citizens. The bank says that for this product, an additional 30 BBP or basis points premium will be payable to the retail term deposits of senior citizens who have deposits of “5 years and above” tenor.

In terms of deposits, assets, customers, employees and branches, SBI is the largest commercial bank. Additionally, it is also the largest mortgage lender. It commands 34% of the home loan market share and 34.86% of the auto loan segment.

Features and Benefits of SBI Home Loan

• It offers a wide range of products according to the needs of the customers.
• It offers low interest rates by calculating the interest on a daily reducing balance.
• It has no hidden costs and has a low processing fee.
• It is also available as an overdraft, which utilizes your surplus funds optimally.
• It reduces your interest burden by providing no penalties for prepaying the loan.
  

Types of SBI Home Loans

Regular Home Loan

SBI Home Loans can be offered to those who want to purchase a ready-built property, under- construction property, pre-owned home or the construction/extension/repair/renovation of a house.

Eligibility

The age limit of a Resident Indian is 18-70 while the Loan Tenure is up to 30 years.

Balance Transfer of Home Loan

With the help of SBI Balance Transfer of Home Loan, the customer can transfer home loan from Scheduled Commercial Banks (SCBs), Housing Finance Companies (HFCs) registered, Private and Foreign Banks with National Housing Bank (NHB) and Borrower's employers in case if they are State/Central Govt. or their undertakings/Public Sector Undertaking.

Eligibility

A Resident Indian of 18-70 years as age limit with an extended Loan tenure is eligible.

NRI Home Loan

SBI NRI Home Loan allows many NRIs to get home loans when investing in properties. Financially, it is better to purchase a property through a home loan rather than through personal financing.

Eligibility

Eligibility for Non-Resident Indians (NRIs) or Persons of Indian Origin (PIOs) is between 18 - 60 years with a Loan Tenure of up to 30 years.

Flexipay Home Loan

SBI Flexipay Home loan provides eligibility for higher loan amount exclusively for the salaried borrowers. It offers customers an option to pay only interest during the pre-EMI period. This variant of home loan is beneficial for young earners.

Eligibility

A Resident Indian with a minimum age of 21 - 45 years can apply for this loan with a loan tenure of up to 30 years.

Privilege Home Loan

SBI Privilege Home Loan is launched exclusively for government employees. Individuals who are employees of Central/State Government which includes PSUs, PSBs of Central Government, and other individuals who have available pension service to apply for this home loan. The amount of loan will be determined by considering factors such as applicant income, repayment capacity, assets and liabilities, age, cost of proposed property, etc.

Eligibility

A Resident Indian of 18-75 years of age with a loan tenure of up to 30 years is eligible.

Home Top Up Loan

SBI Home Top Up Loan is offered to those customers to borrow a certain amount over their home loan amount. If the customer who already has a home loan requires more funding, can apply for Home Top up loans. The interest rates are lower than usual personal loan interest rates.

Eligibility

A Resident Indian of 18-70 years of age with a loan tenure of up to 30 years is eligible.

Bridge Home Loan

SBI Bridge Home Loan is offered to those homeowners who aspire to upgrade their homes to better locations or bigger homes by selling their existing homes.

Eligibility

A Resident Indian of 18-70 years of age limit with a loan tenure of up to 2 years is eligible. A minimum of Rs. 20 lakhs and a maximum of Rs. 2 crores can be offered.

Financial Planning - Key Elements of a Financial Plan

Are you making a financial plan? Maybe for the first time ever or maybe for the umpteenth number of times? Either way, congratulations truly! Yes, we really mean it.

Creating a financial plan is something basic, right? But you’ll be surprised to know how many people still don’t have any type of plans at all for their financial future. They just live from month to month without saving and investing for the future. They don’t save for a possible situation such as job loss, medical emergencies, and etc. So if you do plan for the future, you are way ahead of those that do not.

If this is your first time making a financial plan, you need to know its components, or what it comprises.

• Goals and objectives: The very first thing which you need to pen down is the goals and objectives. These can be multiple, or you can have a single goal and objective. This is up to you, but you need to follow through. This section is going to be your guideline for the rest of the process, so really think hard about your goals and objectives. By the way, you can also make these for the long term, the short term, or both. It is better to have a mix of both so that you know you are making progress. Goals can be saving x amount within 30 years, investing x amount and earning over the years, saving up to buy a home, and etc.
• Income Tax planning: Here is where you examine whether you are maximizing all possibilities of saving taxes according to the planning objectives.
• Balance sheet: A balance sheet, or as it is also called the Statement of Financial Position, is now to be made. It shows your net worth, assets and liabilities. You should update the sheet from time to time as you progress towards your goals and objectives.
• Issues and problems: There shall invariably be problems and even the occasional setback. In this step, you try to determine what the issues are and problems are of your current financial situation. Record the risks as well.
• Risk management and insurance: It takes just one unexpected event to derail even the well-thought out financial plan. Think about it: last year so many people lost their jobs, faced unemployment, faced health issues, and more. When they faced these, their plans were derailed. They just were not ready for this, and faced a lot of problems.
• Retirement, education and special needs: These are things for which you need to plan. Your financial projections should be geared towards meeting these needs.
• Cash flow statement: This is where all of your income streams are shown, as is shown how much money comes in from all of them. Here is also where you should recurring stream income and regular income.
• Investment planning: In this section, you do an analysis of your investments for determining if your portfolio’s growth, income and diversification are consistent as per your Objectives.
• Estate planning: This is where you put a review of your lifetime gifts and the final transfer of assets for the reduction or elimination of gifts and income tax exposure.
• Assumptions: This is where you add your assumptions about future inflation rates, tax brackets, return on investments, years of work remaining, and your life expectancy.
• Implementation plan: In this section, you put a final implementation plan.
  

Lastly, to finish the process you need to ask yourself,

• What rate of return risk do I need to take in order to enjoy the same standard of living in retirement that I enjoy today?
• How long will I need to work before I can afford to retire?
• How much can I afford to spend and not run out of money?
• Am I saving enough to reach my retirement income goals?