The State Bank of India (SBI), India’s largest public sector bank, offers an extensive range of financial products and services, among which the SBI General Home Loan stands out as a cornerstone of its retail banking portfolio. Designed to meet the diverse needs of aspiring homeowners, the SBI General Home Loan is available for purposes such as the purchase of a new or resale home, construction of a house on a plot, or taking over an existing home loan from another financial institution.
Overview of SBI General Home Loan
The SBI General Home Loan is one of the most sought-after loan products in the Indian market due to its competitive interest rates, flexible terms, and the trust associated with the SBI brand. Whether you are a first-time homebuyer or someone looking to shift your existing home loan to a more favourable plan, this product caters to a wide demographic, including salaried individuals, self-employed professionals, NRIs, and pensioners.
The loan is primarily offered under three use cases:
- Home Purchase: Buying a ready-to-move-in or under-construction property.
- Home Construction: Building a home on a self-owned plot.
- Loan Takeover: Transferring an existing home loan from another bank/NBFC to SBI.
Key Features and Benefits
| Feature | Details |
| Loan Amount | No specific minimum; maximum based on repayment capacity and property value. |
| Loan Tenure | Up to 30 years or till borrower turns 70, whichever is earlier. |
| Interest Rate | Starts from 8.00% p.a. (floating rate); varies based on CIBIL score and loan amount. |
| Processing Fees | 0.35% of loan amount (Min: ₹2,000; Max: ₹10,000) + GST |
| Prepayment Charges | Nil for floating rate loans taken by individuals |
| Margin Requirement | 10% to 25% depending on the loan amount and property type. |
| Top-Up Loan Facility | Available after a certain repayment period and eligibility check. |
Types of Loans Covered
a) Purchase of a Home
- Financing available for ready-to-move-in or under-construction properties.
- Legal and technical verification of the property is mandatory.
b) Home Construction
- Disbursal in tranches based on construction stages.
- Plot should be owned and approved construction plans must be submitted.
c) Loan Takeover
- Transfer your existing home loan from another bank/NBFC to SBI at competitive rates.
- Balance transfer accompanied by top-up loan (if eligible).
Eligibility Criteria
SBI provides home loans to a wide customer base with the following eligibility norms:
- Age: Minimum 18 years at the time of application and up to 70 years at the end of the loan tenure.
- Employment Type: Salaried, self-employed professionals, and non-professionals.
- Income Criteria: Sufficient and stable income to cover EMI obligations.
- Credit Score: A CIBIL score of 700 and above is ideal, though loans may be granted at higher interest rates to those with lower scores.
- Co-applicants: Permissible and can improve eligibility and loan amount.
Interest Rate Details
The SBI Home Loan interest rates are directly linked to the External Benchmark Lending Rate (EBLR), making them transparent and market-driven. Interest rates vary based on the borrower’s credit score, income profile, and loan amount. The latest SBI Home Loan interest rates starts from 8.00% p.a. to 8.95% p.a.
Special interest concessions are provided for women borrowers and applicants applying through the YONO SBI digital platform.
Documentation Required
The documentation process is streamlined but comprehensive. The required documents are classified based on the applicant’s profile:
For Salaried Applicants:
- PAN Card and Aadhaar Card
- Salary slips (last 3 months)
- Form 16/ITR for 2 years
- Bank statements (last 6 months)
- Employment certificate or ID card
- Property documents (sale deed, agreement to sell, NOC, etc.)
For Self-Employed Applicants:
- PAN Card and Aadhaar Card
- Income Tax Returns (last 3 years)
- Bank statements (last 6 months)
- Business registration documents
- CA-certified income statements
- Property documents
Tax Benefits
Borrowers can enjoy significant tax savings under the Income Tax Act:
- Section 80C: Up to ₹1.5 lakh per annum on principal repayment.
- Section 24(b): Up to ₹2 lakh per annum on interest paid.
- Section 80EE/80EEA: Additional deduction (subject to first-time homebuyer status and property value limits).
These benefits help reduce the overall effective cost of borrowing.
Application Process
Online Mode:
- Visit the official SBI website or download the YONO SBI app.
- Use the loan eligibility and EMI calculators.
- Submit your application form along with soft copies of the required documents.
Offline Mode:
- Visit the nearest SBI branch.
- Meet with a loan officer who will guide you through the process.
- Submit filled-in forms and hard copies of documents.
Additional Benefits
- Top-Up Loans: For existing borrowers with a good repayment track record.
- Home Loan Insurance: Optional protection plans to cover the loan in case of borrower’s untimely death or disability.
- Balance Transfer Facility: Move your loan from another bank and enjoy lower interest rates.
- Joint Loans: Higher loan eligibility when applied jointly with spouse or family member.
Factors to Consider Before Applying
Before taking a home loan from SBI, consider the following:
- Repayment Capacity: Assess your monthly budget to handle EMI payments comfortably.
- Interest Rate Type: Choose between floating and fixed-rate loans based on market outlook.
- Total Cost: Include processing fees, insurance, stamp duty, registration, and legal charges.
- Loan Tenure: A longer tenure reduces EMI but increases total interest paid.
- Down Payment: Be prepared to pay at least 10% to 25% of the property value from your own funds.
Customer Support and After-Sales Service
SBI provides strong after-sales support through its vast branch network and digital platforms:
- Loan Account Statements: Available online and via email.
- Customer Care: Toll-free helpline, chatbots, and email support.
- Loan Management: View, prepay, or foreclose through YONO SBI.
Comparison with Other Banks
Compared to private sector lenders like HDFC, ICICI, and Axis Bank, SBI offers:
- Lower interest rates
- No hidden charges
- Transparent and standardized process
- Wider reach through its national network
However, private banks may offer faster processing times and more customized customer service.
Conclusion
The SBI General Home Loan is a highly flexible and customer-centric product that supports a wide array of housing needs, from purchase to construction to refinancing. With its competitive interest rates, tax benefits, robust customer service, and nationwide accessibility, SBI has successfully positioned itself as a trusted partner in the journey toward homeownership in India.
For individuals planning to buy or build their dream home, or even seeking better terms through loan transfer, SBI offers one of the most credible and cost-effective options in the market today.
Note: Always ensure you do thorough research, use SBI’s online tools to calculate eligibility and EMI, and consult with a bank representative before finalizing your application. All interest rates are as of 14th April, 2025.