SBI Home Loan Eligibility

In order to avail of a home loan with SBI, applicants are required to fulfil some basic eligibility criteria. These criteria help the bank decide if the applicant has the capacity to repay the loan according to the terms mentioned in the sanction letter.

When you apply for a loan online, you can use the SBI home loan eligibility criteria to check if you qualify for the loan amount that you need. There are several factors that change based on the eligibility criteria of the individual as follows:

• Interest rate: Customers who fulfil all the SBI home loan eligibility criteria are likely to get a lower interest rate. This reduces the monthly payout towards the loan, making the loan more affordable. If the customer shows good repayment capacity, he or she can avail of home loans at rates as low as 8.40%. Factors like your monthly income, age and employment status determine the interest rate. For example, a salaried individual with a fixed income is likely to get a lower interest rate in comparison to someone who is self-employed as the latter is considered a higher risk customer.
• Repayment terms: You enjoy more flexibility when you fulfil all the requirements as per the SBI Home Loan Eligibility Calculator. For customers who are eligible for a loan, a repayment tenure of up to 30 years is available. The longer the repayment tenure, the lower the EMI payable per month. However, it is noteworthy here that the longer the tenure, the more the payout towards the interest of the loan.
• The loan amount sanctioned: The more the repayment capacity of the individual or the higher the value of the property, the higher the loan amount sanctioned. You can also get a higher loan amount if you are younger as you can avail a longer repayment period which makes the EMI payable each month more affordable.

In the following section, you can read about each eligibility criteria and how it affects your chances of getting a loan. 

You can also check SBI Loan Against Property Online and different offers.

The income of the customer is the most important factor in determining the eligibility of the customer. SBI Home Loan Eligibility based on salary allows the bank to understand the repayment capacity of the customer. The higher the income, the more capable the customer is to repay the loan as per the agreed terms. 

Here are some important points with reference to SBI Home Loan Eligibility based on Salary: 

• The minimum salary required in order to get a home loan is Rs.25000.
• The maximum repayment tenure of up to 30 years is available for customers who fulfil this requirement.
• In the case of self-employed individuals, the company must have earned a net profit for at least the last 2 years.
• The net income is taken into consideration during an SBI Home Loan Eligibility Check. This means that the amount that remains after deducting current EMI, ESI, OF and other expenses determines if the individual is capable of repaying the home loan.

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Age plays a critical role when sanctioning a home loan. When it comes to a home loan, a younger customer is preferred as he or she can avail of maximum repayment tenure. This also reduces the EMI obligation each month, making it more affordable. 

SBI Home Loan Eligibility based on age is standard for individuals who are salaried and employed: 

• The minimum age of the customer for an SBI home loan application is 18 years.
• The age of the customer at the time of maturity of the loan should not be more than 70 years.
• Customers in higher age groups get a lower repayment tenure which automatically attracts a higher EMI.

Although younger customers can get a longer repayment tenure, it is recommended that you choose the shortest one possible. When the tenure increases, the EMI reduces. However, the amount that you pay towards the interest towards the end of the loan tenure is significantly high.

The property that is purchased using the home loan is used as a mortgage or security against the loan. Therefore the value of the property plays an important role in the eligibility of the customer. It also determines the loan amount that will be sanctioned. This SBI home loan eligibility criterion is also referred to as LTV or Loan to Value Ratio. 

This ratio is not calculated based on the market value of the product. It is based on the valuation by authorities from the bank. The importance of LTV when approving home loans is as follows: 

• This ratio determines the risk that is involved in approving a home loan.
• LTV gives the customer a fair knowledge of the maximum loan amount that he or she can avail.
• If the LTV is higher, the down payment that the customer needs to make towards the property is much lower.
• LTV ensures that the bank does not lend any amount that is higher than the property cost.
• The LTV of a property determines the interest rate that is provided to the customer for the loan.
• LTV calculation can also include multiple properties in some cases to improve the SBI home loan eligibility of a customer.

At SBI, a customer can get up to 90% of the value of the property as a loan. 

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Based on your financial transactions such as income and repayment towards your loans, a credit report is prepared by the Credit Bureau. This results in a CIBIL score or a credit score that determines your financial health. 

The higher the credit score, the more credible the borrower is. It means that you are regular with your repayments towards any existing credit that you may have with other banks and financial institutions. So, if the credit score is higher, the chances of getting approval on the loan are also higher. On the other hand, with a lower credit score, getting any form of credit is difficult. 

In order to get an SBI Home Loan, it is mandatory to have a credit score of at least 650. Several factors affect your credit score. These are:  

• Repayment made towards loans and credit cards: In case of late repayments towards any existing loan or credit card, the CIBIL score drops significantly. You must at least make part payments towards these credits in order to retain a good credit score and ensure that you are eligible for a home loan.
• The number of unsecured loans: If the number of unsecured loans is higher, the credit score is lower. Unsecured loans usually include products like personal loans. Therefore, having a good mix of unsecured loans with secured loans is a good idea.
• Use of credit limit: If your credit card limit is always maxed out, it is a sign of financial distress. It is also a sign of financial indiscipline. So, it is always recommended to use the credit limit partly and make sure that you repay it on time to avoid a drop in your credit score.
• A number of loan applications: The credit score reduces when a borrower applies for multiple loans or credit products in a very small time interval. This is, again, an indication of financial stress. Therefore, conducting a thorough SBI Home Loan Eligibility Check before you send out an application is helpful. Even if the loans are not approved, sending out multiple applications also affects your credit score.

The cibil score required for home loan is lower in comparison to other loans like personal loans. Since the property is taken as a mortgage against the loan, you can get approval on your home loan application if you fulfil other requirements like a good income.  

SBI offers special loan plans for women, such as SBI Her Ghar which allow them to finance their properties easily. While the eligibility criteria for these loans are the same as any home loan, there are some additional conditions and features that make the processes of applying for a home loan hassle-free. 

Here are some important points to remember with respect to SBI Home Loan Eligibility For Women: 

• The applicant must be an Indian resident
• She must be the first co-applicant for the loan or the sole applicant for the home loan.
• If the applicant is applying for a property with joint ownership, the woman applicant should be the first owner or the sole owner of the property.

The primary benefit of SBI Home loan for women is that they get the loan at a concessional interest rate. The interest rate is 8.40% per annum. They get a concession of about 05 basis points.

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Fixed Obligation to Income Ratio of FOIR is a very important SBI Home Loan Eligibility criteria. With respect to home loans, it is also known as the debt-to-income ratio. The FOIR parameter is the percentage of the income of the applicant that is available to repay the EMI every month. In simple terms, it reflects the disposable income available to the applicant that can be channeled towards repayments. 

FOIR is calculated by taking into consideration the fixed monthly expenses like PF, SIPs, EMIs towards other loans and credit cards, rent etc. and the income of the individual each month. The formula used to calculate the FOIR is 

(Total monthly obligations/ Gross Income Per Month) * 100

For example, if the net monthly outgoing of an individual is Rs.10000 and the income is Rs.20000, the FOIR percentage is 50%. This means that 50% of the individual’s income is available to make additional repayments towards a new loan. 

The minimum FOIR required for an applicant to get approval on an SBI home loan is 0.50 or 50%. However, the disposable funds available should be equal to or more than the predicted EMI per month towards the loan. This indicates that the applicant can repay the loan easily without it becoming a financial burden every month. 

For all SBI Home Loans, the basic eligibility criteria remain the same, as follows: 

• The applicant should be an Indian resident (except for NRI loans)
• The applicant must be atleast 18 years old
• The applicant's age must not be over 70 years when the loan matures.
• The applicant should have an income of at least Rs.25000
• The applicant's credit score must at least be 600.

However, as mentioned above, SBI has several home loan products that are targeted towards specific customer segments. There are slight variations in the SBI home loan eligibility requirements for these loans as mentioned below: 

SBI RRLR linked Home Loan: 

• The applicant should be an Indian resident.
• The applicant must be atleast 18 years old
• The applicant's age must not be over 70 years when the loan matures.
• The applicant's minimum gross annual income must be equal to or more than Rs.6 Lakhs

SBI NRI Home Loan 

• The applicant should be a Non-Resident Indian or a Person of Indian Origin
• The applicant must be atleast 18 years old
• The applicant's maximum age must be 60 years at the time of maturity of the loan.
• The loan amount depends upon the credit profile of the applicant.

SBI Flexipay Home Loan 

• The applicant should be an Indian resident
• The minimum age for a home loan application is 21 years
• The maximum age at the time of application is 45 years
• The applicant's age must not be over 70 years when the loan matures.

SBI Privilege Home Loan 

• The applicant should be an Indian resident
• The applicant must be atleast 18 years old
• The maximum age of the applicant is 75 years
• The loan tenure available is up to 30 years

SBI Shaurya Home Loan 

• The applicant should be an Indian resident
• The applicant must be atleast 18 years old  ‘
• The maximum age of the applicant is 75 years

SBI Realty Home Loan Eligibility 

• The applicant should be an Indian resident
• The applicant must be atleast 18 years old
• The maximum age of the applicant is 65 years

SBI Home Loan Top Up 

• The applicant should be an Indian resident/ NRI
• The applicant must be atleast 18 years old
• The maximum age of the applicant is 70 years.

SBI Bridge Loan Eligibility 

• The applicant should be an Indian resident
• The applicant must be atleast 18 years old
• The maximum age of the applicant is 70 years

SBI Smart Home Loan Top Up 

• The applicant should be an Indian resident/ NRI
• The applicant must be atleast 18 years old
• The maximum age of the applicant is 70 years
• The applicant should have a CIBIL Score of 550 or more
• He or she should have a satisfactory track record of at least 1 year after completing the moratorium.
• The applicant should not have any existing Home or Insta Home top-up loans.

SBI Insta Home loan Top Up 

• The applicant should have an existing home loan with a limit of Rs.20 Lakhs along with an INB facility
• The minimum CIBIL score should be 550
• The applicant should have a satisfactory track record of repayment for a period of at least 3 years.
• The applicant should not have any active Home or Insta Home Top up the loan.

SBI Corporate Home Loan 

• The corporate should be an existing borrower of SBI or should be completely debt-free
• They should have been in the same industry for at least 3 years
• The corporate should have net profits for the last 3 years.
• Existing loans must be regular and standard
• The loans should not have been restructured over the last three years.
• ECR of BBB must have a 10 crore exposure at least.
• Corporate subsidiaries can get a home loan if the parent company fulfils the necessary criteria to avail a home loan or if the parent company is a guarantor for the loan.
• The cash flow of the subsidiary should be sufficient to repay the EMI or an undertaking must be provided by the Parent Company.

SBI Home Loan for Non-Salaried Individuals 

• The applicant should be an Indian resident
• The applicant should be a proprietor or partner of a company that has been in existence for at least 3 years.
• The company should have earned net profits over the last two years
• Any existing credit facility should be standard and regular
• In case the property is acquired in the joint name of the proprietary firm and the proprietor, the firm should be debt-free or an existing borrower of SBI.
• The applicant must be atleast 18 years old

SBI Tribal Plus 

• The applicant should be an Indian resident
• The applicant must be atleast 21 years old
• The maximum age of the applicant must be 60 years.

SBI Earnest Money Deposit

• The applicant should be an Indian resident
• The applicant must be atleast 21 years old

SBI Commercial Real Estate Home Loan 

• The applicant should be an Indian resident
• The applicant must be atleast 18 years old
• The maximum age of the applicant is 70 years

The home loan amount sanctioned in each case depends on several factors. This includes the CIBIL Score of the applicant, the income and the employment status. 

If you are planning to apply for an SBI Home Loan, then there are some ways in which you can improve your chances of getting approval: 

• Opt for a longer repayment tenure:  This is one of the simplest options to improve your chances of getting approval on the loan. Since the EMI is reduced with a longer repayment tenure, factors like debt to income ratio do not affect the SBI home loan eligibility as much. However, when the loan tenure increases, the interest paid towards the loan is also higher.
• Prepay or close existing loans:  If applicants reduce the existing loans and credits before applying for a home loan, they gain more credibility. Focus on repaying or prepaying your unsecured loans so that the credit score improves, increasing your chances of getting an SBI Home loan.
• Apply for a joint home loan: When you do not have the necessary income to apply for the home loan amount that you need, then a joint application can boost your chances of getting a loan. The co-applicants income is also taken into consideration when you apply for the loan, making your repayment ability higher. You can apply for a home loan with your spouse, parent or child if they fit into all the necessary eligibility criteria.
• Regularize payments towards any existing credit: The best way to boost your chances of getting a home loan is to increase your CIBIL Score. When you make your finances more disciplined and streamlined, a report is sent to the Credit Bureau. It is also advised that you do not make any cash withdrawals from your credit card or max out the credit card each month. These practices are a sign of financial stress, leading to a drop in your CIBIL score.
• Show other income sources: Normally, the home loan eligibility of an individual is calculated based on fixed income components like your salary. However, you have the option to show other incentives or bonuses to boost your chances of getting approval on a home loan. You can also show other sources of income like rent, if available, to show additional resources to repay the loan on time.