Is SBI home loan is good?

Interest Rate

SBI Home loan interest rate starts from 8.35%, which is one of the best rates available in the market. The rates vary depending upon certain criteria, like occupation, the quantum of income, nature of the loan, etc.
Loan AmountSBI Home Loan FloatingRate for Female Borrower
Up to Rs. 30 Lakh8.40%8.35%
Rs. 30 Lakh – 75 Lakh8.55%8.50%
Above Rs. 75 Lakh8.65%8.60%
You definitely want to ensure that your lender provides auto-adjusted benefits on interest rates that extends into the future. That’s the reason why you need a credible lending institution with a dedicated and experienced workforce who will guide you through the entire process.

Features of SBI Home Loan

  • SBI Home Loans are available for both salaried and self employed.
  • Special rates for women customers.
  • Home Loans granted to age group between 18 to 70 years.
  • Security: Generally Mortgage of property you are planning to purchase, renovate or construct.
  • Loan to Value Ratio is 90%.
  • Tenure of loan is between 5 to 30 years.
  • Interest rates range from 8.50% to 8.70%.
  • EMI of Rs. 769 per lakh

So, are you ready for buying a house?

If the answer is YES, you must be having a lot of questions in your mind like:
  • Where will I arrange the money from?
  • Am I eligible for the loan?
  • How much down payment do I have to do?
  • How much EMI will I need to pay every month?
  • How can I compare the EMI of different banks on my own?
  • Where will I arrange the down payment amount and EMI amount from?
Let’s understand this with a simple example:
Let’s assume, you want to buy a house two years from now. You went to SBI bank and inquired about a home loan. The cost of the house is 50 lakhs and you want to take a loan for 2 years. The bank is offering the loan at 8.35%.
Now, you have many options, since there are a number of banks and you want to calculate and check what is the best fit for you.  Now, on your own you can use the EMI calculator to check and compare with which bank to go to.
The second obvious question would be the source from where you will arrange the initial down payment? 
The simplest option you have is to approach any relative or friend. But if you want to arrange it on your own then you must really think smart and be calculative in your decision. A great option is to begin with ClearTax Save!
So you have options like Savings account, RD (Recurring Deposit), SIP (Systematic Investment Plan) and many other ways to save enough for the initial down payment.
Let’s find out the best way to save your money, for down payment and for other expenses too:
Property ValueRs. 50 lakhs
Time2 yrs. (24 months)
Down payment20% of Property value = 10 lakhs
Now, consider the different methods of saving Rs. 10 lakhs at SBI from now for these 2 years:
Type of InvestmentInterest RateMaturity Amount after 2 Years
Savings Account3.50%Rs. 10,37,270 (Gains=Rs. 37,270)
Recurring Deposit6.40%Rs. 10,69,457 (Gains =Rs. 69,457)
SIP14-18% Rs. 12,10,940 (Gains = Rs. 2,10,940)
Hence from the above table SIP is the most beneficial saving’s scheme; as  SIP, will enable you to invest regularly keeping in mind your goal of owning your dream home in the shortest possible time.

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