SBI Home Loans are choice of millions of borrowers in India. Thanks to innumerable benefits and trust that come along the brand SBI.
To name a few, interest rates are always at the lowest side, for the lender is pioneer in setting up the tone of rates in the market. Not to miss, the pan India branch network of the largest lender in the country ensures the best customer service from any location in India. Thirdly you can avail of the best offers & deals of the market as SBI is currently also offering rate concession on online application besides the lowest rate in the market. With online customer support, dedicated SBI YONO portal for customer dashboard and tracking transactions, it indeed is one of the most desirable lenders in the country.
However, as we all know public banks have huge queues, it is important that you prepare well before contacting SBI for Home Loan. You should be ready to negotiate for the best rate of interest and loan terms to make most out of your SBI Home Loan Offer.
Let’s decode 5 simple steps to tapping the best rate and fast eligibility on SBI Home Loan.
- Assess Eligibility for Home Loan
Before you Apply for SBI Home Loan, make sure you understand the basic eligibility qualifiers for the facility. For instance, income, credit score, existing liabilities, location and market value of property and loan margin will primarily be enquired before accepting your loan application.
Adhering to some factors can make you eligible for lower rate of interest. For example- a salaried person gets lower rate of interest than a self employed one, opting for lower LTV than being offered, larger tenure, lower than 50 % debt to income ratio, adding a woman co applicant etc. So make sure you try to incorporate as many factors as possible to get the best Home Loan Interest Rate quote.
To make things easier, you can use the services of loan marketplaces and get all kind of support about home loan from professional loan officers.
- Define the tenets of loa
Next step is to define the tentative loan terms such as loan amount, loan tenure, EMI and source of payment of margin amount. The loan eligibility is assessed as the percentage of the market value of property. The LTV for SBI Home Loans vary from 75% to 90%, where 90% is offered only to affordable housing loans. Thus, if you want to finance a purchase of a 2 BHK apartment in a metro city, costing around Rs 80 Lakhs, make sure you arrange for the margin amount of Rs12 Lakhs to 16 Lakhs from your own funds. Next, it is advisable to have all KYC documents in place and be prepared to use income and property documents for best negotiation.
- Contacting the lender
It is important to understand that you may not be eligible for the lowest interest rate offer of the lender. So, rather than contacting the lender with lowest rate offer, look for the lender that is best match for your profile. Contacting several lenders simultaneously is not recommended. It may impact your CIBIL score. Further, certain factors such as your past relationship with the lender and past credit repayment history can greatly help you get the best rate of interest. It is thus important to choose the perfect lender for your needs and then initiate the application.
- Use Negotiation
With high credit score, good repayment history and sufficient repayment capacity on the back of stable job/ business income you have great negotiation power. Speak confidently with the lender and negotiate for a lower rate. In most cases, you can always get up to 20-50 bps rate concession with negotiations. That means, on a loan of Rs 50 Lakh you can save more than Rs 2 lakhs with 30 bps concession.
|Amount||Tenure||Interest Rate||EMI||Total Interest|
|Rs 50 Lakhs||20 years||7.25%||39,519||44,84,512|
|Rs 50 Lakhs||20 years||6.95%||38,615||42,67,606|
In this case, monthly EMI will be reduced by Rs 904 i.e. 10848 saving per year. Total interest saving will be Rs 216906. Thus, it is recommended to use negotiation and lock the best rate.
- Closing the best deal
In many cases, the post disbursal benefits or repayment flexibility are some of the top features. For example- SBI Max Gain is a one of the Best Home Loans for anyone who seeks repayment flexibility and cut down interest liability with their surplus funds. All you need to do is keep surplus in the linked saving account and it will reduce your principal amount, thereby minimising your interest pay out. So, it is important to find the best loan product according to your profile.
All in all using professional service can be extremely fruitful as they can compare the offers in market and help you choose the one that is the best match for your profile. Also follow these steps and be assured to avail of the best offer.