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Product Details
Bank Name

State Bank Of India

Maximum Loan Tenure

30 years

Maximum Loan Amount

Depends on your income and CIBIL score, no upper limit.

Interest Rate

Interest Rate: 9:15 to 9.45%.

Type

Floating

SBI Privilege Home Loan
Down Payment

For loan amount upto Rs.30 Lacs, maximum permissible LTV ratio is 90% of the assessed value of
the property. For loan amount greater than Rs.30 Lacs and upto Rs.75 Lacs, maximum permissible
LTV ratio is 80%. A maximum permissible LTV ratio of 75% is applicable on a loan amount above
Rs.75 Lacs.

Fees and Charges

Processing Fee: 0%
Legal Fee: At actuals.
Stamp Duty & Registration Fee: At actuals
Penal Interest: 2% per month above the applicable interest rate.

Minimum CIBIL Score

Not specified.

Down Payment and Fees

SBI Privilege Home Loan

Special Features

  • Interest charges on daily reducing balance basis. 

  • Interest deduction on a daily reduction balance basis refers to a method of calculating interest on loans, where the interest is charged on the outstanding principal every day, rather than monthly or annually. This approach can be slightly more complex than other methods, but it offers several advantages:

  • Lower overall interest expense: Since interest is only charged on the remaining principal balance, you end up paying less interest overall compared to traditional monthly reducing balance methods. This benefit is especially noticeable for shorter loan terms and for loans with large prepayments.

  • Fairer representation of interest accrual: Daily reduction balance method reflects the true daily accrual of interest, making it a more accurate way to represent the cost of borrowing.

  • Benefits of early or frequent payments: Any prepayments or additional payments are immediately reflected in the reduced principal balance, leading to immediate interest savings. This is because interest is calculated on the updated daily balance, unlike traditional methods where adjustments happen only at the next payment date.

Eligibility Criteria

The SBI Privilege Home Loan is exclusively designed for employees of the Indian government and related entities, offering preferential interest rates and benefits. Here's a breakdown of its eligibility criteria:

Individual Applicant:

  • Employment: You must be an employee of any of the following:Central Government or State Government (including PSBs and PSUs)
    Autonomous bodies/Public Undertakings controlled by the Central or State Government
    Defense Forces (Army, Navy, Air Force)
    Educational Institutions funded by Central or State Government
    Pensioners of any of the above organizations

  • Age: Minimum of 18 years and maximum of 75 years at loan maturity.

  • Minimum Income: No specified minimum income, but your earnings must be sufficient to afford the loan repayments and meet SBI's debt-to-income (DTI) ratio requirements. Generally, the DTI ratio shouldn't exceed 50%.

  • Credit Score: Maintain a good credit score to improve your chances of loan approval.

Additional Eligibility:

  • Nationality: Must be an Indian citizen.

  • Property Location: The property must be located in India.

  • Property Type: You can use the loan for purchase of a new flat/house, construction of a house, or extension/renovation of an existing property.

  • Joint Ownership: You can apply jointly with your spouse or a blood relative.

Documents Required:

  • Application form

  • Proof of identity and address

  • Proof of income (salary slips, ITRs, pension documents)

  • Property documents (agreement of sale, construction estimates, property tax receipts)

  • Employer ID card

  • Completed loan application form with 3 passport-sized photographs

Note:

Special Concession

  • Concession for women borrowers. 

  • Concession in case the employee opts for direct EMI deduction from the salary of the government employee.

Home Saver Option

No.

Features, Eligibility and Concession
Pros

  • Nil processing fee. 

  • It offers low interest rates.

  • It offers interest concession for women borrowers.

  • It charges interest on a daily reducing balance.

  • Interest concession in case the employee opts for direct EMI deduction from the salary of the government employee.

Cons

  • No home saver option.

  • It does not offer fixed interest rate option.

Pros & Cons
Application Procedure

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