Business

How to Check Loan Against Property Eligibility in SBI?

Getting a Loan against Property (LAP) is one of the commonest loans that banks lend to their customers. It eases the process as it serves as major collateral. Be it a residential property or a property under commercial, it can serve as collateral. However, getting a loan against an existing property is a tedious job. But several banks like the State Bank of India are offering such loans at attractive interest rates. Also, you can take a loan from SBI and get several additional benefits. Additionally, the schemes like SBI rent plus also serve a great purpose for several people. To know the reasons to get a LAP from the SBI, read the article further. Also, get to know about the details of LAP by SBI. Besides, get an insight about the loan against property eligibility SBI. Furthermore, know, how different types of loans against property work. You will also get to learn how to use SBI Loan Against Property Eligibility Calculator in the later parts of the article. 

Key Features of Loan Against Property by SBI:

People opt for LAP by SBI for the following reasons:

  • Attractive Rates of Interest: The mortgage loans by SBI are the best among the rest of the banking institutions in our country. However, the rates vary with the type and amount of loan. 
  • Low charges of Processing fee: The procedure of getting a mortgage loan from the State Bank of India is smooth and free from hassles. Also, the low charges of processing fees add to its perks.
  • Transparency of Procedure: SBI keeps no secrets when it comes to being transparent. Besides, the bank makes sure that you know all the terms and conditions before you apply for any loan. Furthermore, it has no hidden charges that add to the interest value later on. 
  • Ease of Prepayment: The bank offers you the scope of paying back your mortgage loans before the completion of the loan tenure. 

Rates of Interest For Loan Against Property by SBI:

Several factors decide the rates of interest for a loan against existing properties. The following two are the prime factors:

  • CIBIL Score: It is the score that you get from a bank based on your transaction and credit repayment. Also, repayment of loans has an impact on this score. 
  • Income: You will have to pay a lower value of interest if your income is high and vice-versa. Because the probability of you backing back the loan in time is higher if you have a higher income. 

Also, the interest rates vary for salaried and self-employed people. The following tables show the interest rates of salaried and self-employed people respectively:

Interest Rates for Salaried individuals:

Principal Amount of LoanInterest Rates
Up to Rs 1 Crore 1.45% plus 1-year MCLR
From Rs 1 Crore to Rs 2 Crore2.10% plus 1-year MCLR
From Rs 2 Crore to Rs 7.5 Crore2.50% plus 1-year MCLR

Interest Rates for Self-employed individuals:

Principal Amount of LoanInterest Rates
Up to Rs 1 Crore 2.10% plus 1-year MCLR
From Rs 1 Crore to Rs 2 Crore2.60% plus 1-year MCLR
From Rs 2 Crore to Rs 7.5 Crore3.00% plus 1-year MCLR

From the above table, we can infer that

  • The interest rates in the case of salaried individuals are less than that of self-employed individuals. 

Eligibility criteria for availing of a LAP from SBI:

Many criteria are present to get a loan against your property from the State Bank of India:

  • The minimum age of an applicant should be 18 years old. On the other hand, the maximum age is 70 years for getting a LAP from SBI.
  • However, the loan value and the tenure for LAP will differ according to your age. For applicants aged between 25 years to 59 years, the tenure will be 15 years.
  • On the other hand, for the applicants aged above 60 years, the maximum tenure for repayment of LAP will be 10 years.
  • Also, you need to have an income valuing a minimum of Rs 25,000.  However, if you have a co-applicant then the maximum amount of loan will be as per the summation of both of your incomes. 
  • Besides, the value of your property is also a deciding factor when it comes to getting a LAP from SBI. 
  • Furthermore, if you are a salaried person you should have a job that yields you constant income for at least 2 years. 
  • Moreover, the property against which you are opting for a loan should be in your name. However, you can also take a LAP for properties that are in your spouse or sibling or parent’s name. 
  • Also, you have to have a minimum CIBIL Score of 650 to be eligible for getting an LTV. 
  • On the other hand, Your Fixed Obligation Income Ratio (FOIR) should be a minimum of 65%. 
  • You can also opt for loans for properties that are will be provided for rent in the future. The banks estimate the value by assessing the area and location of the property. 
  • Furthermore, you can LTV of up to 75% according to the SBI rent plus scheme. 

The Details of the Loan to Value ratio for LAP with SBI:

  • The final amount that you will get by keeping your property for a mortgage will be as per its present valuation.
  • On the other hand, the LTV ratio is based on your property type. 
  • That implies, that the LTV differs in the cases of residential property and commercial property. 
  • Also, the Loan to Value Ratio is more in the case of residential properties. It can be up to 80%. 
  • On the other hand, for commercial properties, you can get a maximum of 65% LTV. 

Calculating the Maximum LAP for SBI:

You get a higher LAP for a high gross monthly salary. Moreover, it gets higher when you have no obligations associated with finance. Furthermore, SBI Loan Against Property Eligibility Calculator is a tool that helps you calculate the EMI you have to pay for the loan amount. You can use it to get a fool-proof result. 

Input requirement for an EMI calculator: 

  • Principal amount. 
  • Tenor, and 
  • Interest Rate. 

The formula for calculating EMI value:

(P+(P✕T✕r))/T✕n

Where

P is the principal value of the amount

Besides, the tenor of the LAP is T

Also, the interest rate is r

And the total tenure in months is n

So, for a principal amount valuing Rs 50 lakhs, for 10 years tenor and 3% interest rate the EMI will be:

EMI = (5000000+(5000000✕10✕3))/10✕12

EMI = Rs 48,280

Hence, you will have to pay Rs 48,280 every month as EMI if you take a loan of Rs 50 lakhs at 3% rate of interest and 10 years tenor. 

A Loan Against Property serves multiple purposes in our lives. The schemes available with the State Bank of India are the best. Also, the beneficial offerings at times help to a major extent. Besides, calculating the EMI value for LAP is now easy. Hence, opting for it is stress-free. Also, you can avail of such a loan if you are to rent the property in the future. Further, the transparency of SBI as a brand is par excellence. So, one can take a LAP from SBI without thinking twice. 

Some Other Blogs:

How To Make Your Optical Business Big Like Lenskart?

How To Choose Top SEO Company In India?

Related Articles

Leave a Reply

Your email address will not be published.

Back to top button