SBI Privilege Home Loan Interest Rates - Updated in November 2024

SBI Privilege Home Loan offers a tailored financial solution for individuals seeking home financing. The SBI Privilege Home Loan is a special scheme for government employees, offering competitive interest rates starting from 8.40% p.a. The loan tenure can extend up to 30 years. The loan amount is determined by various factors, such as the applicant’s income, age, repaying capacity, and the cost of the proposed house. 

Women borrowers receive an interest concession, starting from 8.25% p.a. The same concession applies to senior citizens and NRIs, with NRI rates starting from 8.90% p.a. A minimum CIBIL score of 649 is generally required. Government employees can benefit from the exclusive advantages offered by the SBI Privilege Home Loan for government employees. But before applying, you must be aware of the complete process, which is where this article will help you. This article will help you understand the interest rates, eligibility, and documentation for the loan. So, read this article till the end.

SBI Privilege Home Loan Interest Rates for Women and Benefits 

SBI offers exclusive Privilege Home Loan interest rates for women. It also offers some key benefits for women. They are:

• Interest concession
• No processing fee
• No pre-payment penalty
• No hidden charges

Below is a table illustrating the correlation between CIBIL score and the corresponding SBI privilege home loan rate of interest:

CIBIL Score	Term Loan	Maxgain
CIBIL > = 750	9.15%	9.55%
700 - 749	9.35%	9.75%
650 - 699	9.45%	9.85%
550 - 649	9.65%	10.05%
NTC/ No CIBIL/ -1	9.35%	9.75%

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

SBI Privilege Home Loan Interest Rates for Salaried

SBI's Privilege Home Loan for salaried individuals comes with competitive interest rates. It also offers some key benefits for salaried. They are:

• Daily reducing balance
• Overdraft facility
• Repayment up to 30 years
• Pensionable can also apply.

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

CIBIL Score	Term Loan	Maxgain
CIBIL > = 750	9.15%	9.55%
700 - 749	9.35%	9.75%
650 - 699	9.45%	9.85%
550 - 649	9.65%	10.05%
NTC/ No CIBIL/ -1	9.35%	9.75%

Feature and Benefits of SBI Privilege Home Loan

The SBI Privilege Home Loan is a special home loan just for government workers. Its features and benefits are as follows: 

Features

1. Low-Interest Rates

You can save money as the loan offers affordable interest rates compared to other banks.

2. Zero Processing Fee:

There is zero processing cost. This ensures that you can save application money. 

3. No Hidden Charges

There are no unstated costs, and the loan conditions are transparent, giving borrowers peace of mind.

4. No Pre-Payment Penalty

Borrowers can pay off their loans early without any penalties.

5. Daily Reducing Balance

The interest is calculated on a daily reducing balance, which can lead to important savings over the loan term.

Benefits

1. Designed for Government Employees

The SNI privilege plan is crafted exclusively for civil servants, including employees of Public Sector Banks (PSBs), Public Sector Undertakings (PSUs) of the Central Government, and other individuals entitled to a pension after their tenure of service.

2. Interest Concession for Women Borrowers

To empower female borrowers financially, they are eligible for discounted interest rates, which make repaying the loan more feasible.

3. Repayment up to 30 years

One of the most accommodating features of this loan is the remarkably long repayment period of up to 30 years it allows. This provides borrowers with the flexibility and affordability of lower monthly payments.

4. Overdraft Facility

The bank provides an overdraft facility, known as Maxgain, to SBI Privilege loan applicants buying ready-to-move-in properties.

6. Switch Over Option

If you have a home loan with another bank or financial institution, you can transfer the remaining balance of that loan to the State Bank of India.

How to Apply for SBI Privilege Home Loan?

Applying for SBI Privilege Home Loan is very easy. You just have to follow these simple steps:

Step 1: Application Form Completion

SBI provides a simple home loan application process for existing and new customers. The application form consists of four different sections. They are:

• Form A - Personal Details Form: This form asks for your fundamental personal information like your full name, date of birth, PAN number, contact details, spouse's and father's names, gender, marital status, living arrangements, and KYC3 identification. 

• Form B -  Employment & Income Details Form: In this form, please provide details regarding your employment status and income level. This helps the bank evaluate your ability to repay the loan.  

• Form C - Property & Loan Details Form: Kindly furnish the particulars of the property for which you need the loan along with the loan amount, tenure, and other specifics in this form. 

• Form D - Declaration Form: Finally, please thoroughly read the agreement provided here and sign it to complete the process.m.

Step 2: Collection of Documents

After you have filled out the application form, you will need to provide the necessary documents. SBI offers the service of collecting these documents from your home.

Step 3: Processing of Application

Once SBI has collected your documents, they will begin processing your application.

Step 4: Receipt of Loan Sanction Letter

If your application is successful, you will receive a letter sanctioning your loan.

Step 5: Legal and Technical Verification

SBI will conduct legal and technical verifications on the property you plan to buy.

Step 6: Disbursement of Loan

The loan amount will be disbursed once all verifications are complete.

SBI Privilege Home Loan Eligibility

The SBI Privilege Home Loan eligibility is as follows:

Job

You need to work for the Central or State Government, including jobs at Public Sector Banks (PSBs) and Central Government’s Public Sector Undertakings (PSUs).

Resident Type

The applicant must be a Resident Indian.

Minimum Age

The applicant must be at least 18 years old.

Maximum Age

The applicant should not be more than 75 years old at the time of loan maturity.

Documents Required of SBI Privilege Home Loan

The documents required for a SBI Privilege Home Loan are:

Applicable to all Applicants

1. Company ID Card

2. Filled out loan application with 3 passport photos

3. Identity Proof (Choose one): PAN, Passport, Driver’s License, Voter ID

4. Address Proof (Choose one): Recent Telephone Bill, Electricity Bill, Water Bill, Gas Bill, Passport, Driving License, Aadhar Card

5. Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card

Property Papers

1. Permission for construction (where applicable)

2. Registered Sale Agreement (only for Maharashtra), Allotment Letter, or Stamped Sale Agreement

3. Occupancy Certificate (for ready-to-move property)

4. Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, Property Tax Receipt

5. Copy of Approved Plan & Registered Builder’s Development Agreement, Conveyance Deed (For New Property)

6. Receipts or Bank Statements showing payments to Builder/Seller

Account Statement

1. If any previous loan is from other banks, then the Loan Account statement for the last 1 year

2. Last six months Bank Statements for all accounts held by the applicant

Income Proof for Salaried Applicant/ Co-applicant/ Guarantor

1. Copy of Form 16 for the last two years or copy of I.T. Returns for the last two financial years, acknowledged by I.T. Dept.

2. Last 3 months Salary Slip or Salary Certificate

Income Proof for Non-Salaried Co-applicant/ Guarantor

1. Business address proof 

2. TDS Certificate (Form 16A, if applicable)

3. Balance Sheet & Profit & loss A/c for last 3 years

4. Certificate of qualification (for C.A./ Doctor and other professionals)

5. I.T. returns for the last 3 years

6. Business License Details(or equivalent)

SBI Privilege Home Loan Comparison With Other Banks

Below is a comparison of the SBI Privilege Home Loan 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	8.40% - 10.15% p.a.

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

The formula to calculate EMI is (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

Suppose you take a loan of ₹7,500,000 with an annual interest rate of 8.40% for a tenure of 20 years. Below is how you can calculate the EMI:

Convert the annual interest rate to a monthly interest rate

R = 8.40 / 100 / 12 = 0.007

Convert the tenure from years to months

N = 20 * 12 = 240

Substitute P, R, and N into the formula:

• P = 7500000
• R = 0.007
• N = 240

EMI = (P * R * (1 + R) ** N) / ((1 + R) ** N - 1)

First, calculate (1 + R) ** N, which is (1 + 0.007) ** 240 = 5.743.

Then, calculate P * R * (1 + R) ** N, which is 7500000 * 0.007 * 5.743 = 302,025.

Next, calculate (1 + R) ** N - 1, which is 5.743 - 1 = 4.743.

Finally, divide P * R * (1 + R) ** N by (1 + R) ** N - 1, which is 302,025 / 4.743 = 63,694.

So, the EMI that you need to pay every month is approximately ₹63,694. You can also take the help of the SBI Privilege Home Loan EMI calculator.

SBI Privilege Home Loan Interest Rates for the Last 5 Years

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

Year	Interest Rate Range (%)
2023	9.15 - 11.90
2019-20	8.50 - 9.30
2018-19	8.55 - 9.35
2017-18	8.15 - 8.90
2016	8.90 - 9.45

Factors That Affect the SBI Privilege Home Loan Interest Rate

The SBI Privilege Home Loan interest rates are impacted by several factors. Some of them are:

1. Income and Repaying Ability

Your earnings and ability to repay the loan matter. You might get a better rate if you earn more and repay quickly.

2. Age

Younger people might get better rates as they have more working years.

3. Assets and Liabilities

You might get a better rate if you own more assets and owe fewer liabilities.

4. Cost of House/Flat

The price of the property you’re buying can affect the rate.

5. Credit Score

A good credit score can lower your rate because it shows you are less risky for the bank.

Tips to Avail SBI Privilege Home Loan at Lower Interest

Some tips to avail SBI Privilege Home Loan at a lower interest rate are:

1. Maintain a High Credit Score

A high credit score indicates financial reliability, which can help you negotiate for a lower interest rate. Regularly check your credit report and ensure all dues are paid on time.

2. Opt for a Shorter Tenure

While a longer tenure reduces the EMI amount, it increases the total interest paid. A shorter tenure can help save on the overall interest outgo.

3. Make a Higher Down Payment

Putting down a bigger initial payment reduces the total amount you borrow. This results in less interest paid over the life of the loan. If possible, make the initial payment larger.

4. Regularly Monitor Interest Rates

Pay close attention to interest rate changes. Rates go up and down over time. Contact your lender to modify your loan terms if rates decrease a lot. Doing this could potentially save you money.

Conclusion

The SBI Privilege Home Loan is a special offer that helps you buy your dream home. It has reasonable interest rates, manageable payment plans, and extra benefits. It’s made to suit different types of home buyers. If you are thinking about buying a home, consider applying for the SBI Privilege Home Loan. The application process is simple, and their team is ready to help you. 

For an easy and smooth home loan process then trust NoBroker. We can assist you from the beginning to the end to get the SBI Privilege Home Loan. So, what are you waiting for? Buy your new home today!

Frequently Asked Questions