SBI Bridge Home Loan Interest Rates - Updated in April 2024

The Bridge Home Loan SBI is a convenient option for you to get extra financing above the home loan if you are falling short of money. It is also called the SBI Home Top-Up Loan. This loan helps bridge the financial gap while taking a home loan. The rates for this loan are competitive, ranging from 9.50% to 10.50% per year for most applicants. The loan must be repaid within 2 years, and loan amounts range from ₹20 lakh to ₹20 crore.

Special rates are available for certain applicants. Women enjoy slightly lower rates of 9.25% to 10.15% per year. Senior citizens start at 6.75% yearly, while Non-Resident Indians (NRIs) begin at 8.90% yearly. Those with credit scores of 750 or better are the best candidates for this loan. If you are someone who is considering getting a Bridge Home Loan SBI, then this article explores eligibility, interest rates, repayment terms, and other key features related to the loan. 

SBI Bridge Home Loan Interest Rates for Women and Benefits 

SBI Bridge Home Loan offers preferential interest rates for women, providing them with a cost-effective financing option.  It also offers some key benefits for women. They are:

• Lower interest rates
• Flexible repayment up to 30 years
• No hidden charges
• No pre-payment penalty
• 0.05% interest concession
• Tax benefits

Below is a table illustrating the correlation between CIBIL score and corresponding interest rates:

CIBIL Score	Interest Rate on Term Loan	Interest Rate on Overdraft
CIBIL > = 750	9.55%	9.85%
700 - 749	9.75%	10.05%
650 - 699	9.85%	10.15%
550 - 649	10.15%	10.45%
NTC/ No CIBIL/ -1	9.75%	10.05%

Note: 5 bps Concession available to women borrowers subject to minimum EBR i.e. 9.15%.

SBI Bridge Home Loan Interest Rates for Self-Employed

SBI extends Bridge Home Loan with competitive interest rates tailored for self-employed individuals. It also offers some key benefits for self-employed. They are:

• Overdraft facility
• Interest based on credit score
• Processing fees as low as 0.35% of the loan amount

Below is a table illustrating the correlation between CIBIL score and corresponding interest rates:

CIBIL Score	Interest Rate on Term Loan	Interest Rate on Overdraft
CIBIL > = 750	9.55%	9.85%
700 - 749	9.75%	10.05%
650 - 699	9.85%	10.15%
550 - 649	10.15%	10.45%
NTC/ No CIBIL/ -1	9.75%	10.05%

SBI Bridge Home Loan Interest Rates for Salaried

Bridge Home Loan SBI for salaried individuals provides an ideal solution for additional financial needs related to your home. Bridge Loan SBI also offers some key benefits for salaried. They are: 

• Loan up to 30 lakhs
• Interest in daily reducing balance
• Provision for a second loan
• No security, no guarantor

Below is a table illustrating the correlation between CIBIL score and corresponding interest rates:

CIBIL Score	Interest Rate on Term Loan	Interest Rate on Overdraft
CIBIL > = 750	9.55%	9.85%
700 - 749	9.75%	10.05%
650 - 699	9.85%	10.15%
550 - 649	10.15%	10.45%
NTC/ No CIBIL/ -1	9.75%	10.05%

Features and Benefits of SBI Bridge Home Loan 

When you fall short of home loan financing when buying a house, a Bridge Home Loan SBI might help with short-term financial demands. It has a number of features and benefits. 

Features

1. Low Interest Rates

This loan offers competitive interest rates, making it an attractive choice for those looking to borrow money.

2. Low Processing Fee

The processing fees for this loan are minimal, helping to keep the total cost of the loan low.

3. No Hidden Charges

You can have peace of mind knowing there are no hidden charges with this loan. All costs are clearly outlined upfront.

4. Interest charges on Daily Reducing Balance

The way interest is calculated for this loan can result in lower overall interest payments. Specifically, interest is applied each day to the reduced loan balance.

5. Home Loan Available as Overdraft

A useful feature of this loan is the ability to access it as an overdraft on your home loan account, providing flexibility in managing your finances.

6. Repayment up to 30 years

The 30-year maximum term of the SBI Bridge Home Loan allows you to pay it back in the fewest possible monthly instalments. This enables longer-term, smaller monthly instalments.

Benefits

1. Immediate Cash Flow

These loans provide rapid access to money for urgent needs. They enable you to quickly obtain funds when unexpected expenses arise.

2. No Pre Payment Penalty

You can pay off this loan early with no penalty fees. You have the flexibility to repay the loan ahead of schedule if you want. There are no charges for prepaying the loan.

3. Savings on Interest

Since interest is calculated daily on the reduced balance, you may pay less interest over the life of the loan. The declining principal results in potential interest savings.

4. Enhanced Cash Flow Management

The overdraft feature improves cash flow management. You can withdraw money as required and are charged interest only on the utilized amount. This allows better control over cash outflows.

How to Apply for SBI Bridge Home Loan?

Applying for a Bridge Home Loan SBI involves a series of easy steps. They are:

Step 1: Visit the SBI SBI Online Services website.

Go to the official of website of SBI. 

Step 2: Create an Account or Sign In

Create an account if you do not have or you can directly sign in to your account using your login details.

Step 3: Go to Loans

Once logged in, find the loans section to proceed.

Step 4: Choose ‘Home Top-Up Loan’

Find and select the ‘Home Top-Up Loan’ option.

Step 5: Complete the Application

Fill out the application carefully, including information about your present house loan, the amount you would want to top it up, and your financial situation right now.

Step 6: Send the Application

Once all fields have been filled out completely, submit your home top-up application. After reviewing your application, SBI will notify you of the outcome.

Bridge Home Loan Eligibility

The eligibility criteria for the Bridge Home Loan SBI are as follows: 

Residency

You can only apply for a loan if you are an Indian resident or NRIs.

Age

You should be between the ages of 18 and 70.

Credit Score

You must have a credit score of 550 or above if you have taken a loan prior.

Document Required of Bridge Home Loan SBI Home Loan

Applying for a Bridge Home Loan SBI requires a set of documents to verify your identity, residence, and income. The required documents are:

Applicable to all Applicants:

1. Completed loan application

2. Employer ID Card

3. 3 passport-sized photos

4. Residence proof (Recent Electricity Bills, Telephone Bills, Property tax receipts, Voter ID, Passport photocopies)

5. Personal Assets and Liabilities statement

6. The previous six months' worth of bank account statements or passbooks

7. Identity proof (Passport, Voter’s ID, Driving license, PAN card photocopies)

8. Business address proof for non-salaried individuals

9. Signature identification from current bankers

For Guarantor (Wherever Applicable):

1. Personal Assets and Liabilities Statement

2. Identification Proof (same as above)

3. Business Address Proof (same as above)

4. Residential Proof (same as above)

5. 2 passport-sized photos

6. Signature identification from their current bankers

Additional Documents Required for Salaried Persons

1. Original Salary Certificate from employer

2. TDS certificate on Form 16 or a copy of the  I.T. Returns for the last two financial years acknowledged by the Income Tax Department. 

Additional Documents Required for Self-Employed/ Professionals/Other Income Tax Assesses

1. Copy of the last three years’ acknowledged ITR/Assessments Orders

2. Copies of the challans showing payment of Advance Income Tax

SBI Bridge Home Loan Comparison with Other Banks

Below is a comparison of the Bridge Home Loan SBI with other top banks based on their interest rates:

S. No.	Bank/ NBFC Name	Interest Rate
1	Axis Bank	9.00% – 14.00%
2	Aditya Birla Capital	9% – 12.50%
3	Bandhan Bank	8.65% – 13.65%
4	Bank of Baroda	8.50% – 10.60%
5	Bank of India	7.80% – 9.65%
6	Bank of Maharashtra	8.40% – 10.80%
7	Canara Bank	8.85%- 11.25%
8	Central Bank of India	8.45% – 9.20%
9	Citibank	8.45%-14%
10	Corporation Bank	8.60% – 11.20%
11	Dena Bank	8.40% Onwards
12	Federal Bank	10.15% – 10.30%
13	Fullerton Bank	9.50% Onwards
14	HDFC Bank	8.95% – 9.85%
15	HSBC	8.60% Onwards
16	ICICI Bank	9.00% – 10.05%
17	IDBI Bank	8.75% – 11.45%
18	IDFC First Bank	8.85% Onwards
19	Indian Overseas Bank	9.55% Onwards
20	SBI Bank	9.15% - 11.30%

SBI Bridge Home Loan EMI Calculator - How to Calculate SBI Bridge Home Loan EMI?

The formula to calculate EMI is:

EMI = (1+R)N−1P×R×(1+R)N​

where:

• P is the principal loan amount,
• N is the loan tenure in months, and
• R is the monthly interest rate

For example, let’s say you have taken a loan of ₹5,00,000 for 2 years (or 24 months) at an interest rate of 9.15% per annum. 

Here’s how you can calculate the EMI:

• P = ₹5,00,000
• R = 9.15%, so the monthly rate r = R / (12 * 100) = 0.007625
• n = 2 years * 12 = 24 months

Substituting the values:

EMI=(1+0.007625)24−1500000×0.007625×(1+0.007625)24​

Let’s calculate the numerator and the denominator separately:

Numerator: 500000 * 0.007625 * (1 + 0.007625)^24 = 500000 * 0.007625 * 1.2074 = 4603.35

Denominator: (1 + 0.007625)^24 - 1 = 1.2074 - 1 = 0.2074

Finally, divide the numerator by the denominator:

EMI=0.20744603.35​=₹22214.59

So, the EMI for a loan amount of ₹5,00,000 at an annual interest rate of 9.15% for a tenure of 24 months is approximately ₹22,214.59.

SBI Bridge Home Loan Interest Rates for the Last 5 Years

Interest rates for the Bridge Home Loan SBI for the last 5 years are as follows:

Year	Interest Rate Range (%)
2023	9.15% - 11.30%
2019-20	8.50 - 9.30
2018-19	8.55 - 9.35
2017-18	8.15 - 8.90
2016	9.05 - 9.30

Factors That Affect the SBI Bridge Home Loan Interest Rate

The interest rate on a Bridge Home Loan SBI is determined by various elements that borrowers need to consider. These include:

1. Loan-to-Value (LTV)

The loan-to-value ratio, which compares the loan amount to the property's value, is important. A higher ratio often leads to a higher interest rate.

2. Collateral 

The collateral also impacts the home loan interest rate. 

3. Loan Term

A shorter term can sometimes mean a lower interest rate.

4. Risk Assessment

Risk assessment is the bank’s way of checking how likely you are to pay back the loan. They look at things like your job, income, and past loan payments. If the bank thinks you might not be able to pay back the loan, they will charge a higher interest rate. If they think you can pay it back without issues, they may offer a lower interest rate. This helps the bank avoid losing money.

5. Benchmark Rates

Benchmark rates like the RBI's Repo Rate could impact your interest rate if it is tied to them. If the benchmark rate changes, your loan rate may follow.

Tips to Avail SBI Bridge Home Loan at Lower Interest

Here are some tips to avail of Bridge Home Loan SBI at lower interest:

1. Good Credit Score

Maintain a high credit score as it reflects your creditworthiness. Lenders often offer lower interest rates to borrowers with good credit scores.

2. Compare Lenders

Interest rates offered by various lenders vary. Before choosing, do your homework and evaluate the interest rates that different lenders are willing to provide.

3. Negotiate

Do not be afraid to negotiate with your lender over the interest rate. Use your track record of timely payments as leverage in the discussion.

4. Shorter Tenure

Choose a shorter loan term. The overall interest will be lower even if the EMI may be greater.

5. Prepayment

Make loan payments in advance. This lowers the overall amount of interest you must pay and the length of your loan. But first, see whether there are any prepayment fees and then decide before making the payment. 

Now, you may have the answer to what is SBI Bridge Home Loan. For people needing financial support while selling one home and buying another, the State Bank of India offers a special loan known as the Bridge Home Loan. This loan is an economical alternative for real estate purchases because of its flexible repayment plans and favourable interest rates. 

However, getting a loan can be a tedious task. Thus, to get a smooth and seamless process for Bridge Home Loan SBI, you can rely on NoBroker. We can assist you through the process and help you secure the loan so that you do not have to compromise on your dream of having your own house. 

Frequently Asked Questions