SBI Loan Against Property
SBI Loan Against Property (LAP) is an attractive financial product for those who need substantial funds and possess valuable property to pledge. This type of loan can be used for various personal or business purposes such as funding the child’s education, expanding a business, or managing medical emergencies. SBI bank loan against property can be availed at 10.10% per annum for tenures up to 15 years by eligible borrowers.
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SBI Loan Against Property Interest Rate
The interest rate on a LAP plays a pivotal role in determining the overall cost of the loan and the affordability of the monthly repayments. The SBI loan against property interest rate starts around 10.10% per annum but may vary depending on the borrower’s profile and the specifics of the loan. The LAP interest rate for SBI may vary for floater and fixed rate packages, so make sure to understand this difference before applying for one from this bank.
The table below will give you a clue about the LAP SBI interest rate SBI 2024:
| Rate Package | Rate of Interest |
|---|---|
| Floater | 10.10% - 11.65% per annum |
| Fixed Rate | 10.10% - 11.65% per annum |
SBI Loan Against Property Eligibility Criteria
The loan against property eligibility SBI includes adherence to certain basic requirements set by the bank. These criteria typically encompass several factors including the borrower’s age, income, credit score, and employment status.
| Eligibility Parameters | For Salaried Individuals | For Self-Employed Individuals |
|---|---|---|
| Age Range (in years) | 18 - 70 years | 18 - 70 years |
| Nationality | Indian Resident | Indian Resident |
| Minimum Income Earned | Rs. 25,000 per month | Rs. 25,000 per month |
| Credit Score | 650 and above | 650 and above |
SBI Loan Against Property Fees and Charges
A loan against property with SBI comes with a set of fees that potential borrowers need to be aware of. These include processing fees, legal and valuation charges, foreclosure or prepayment charges, and other miscellaneous fees.
Check out the SBI loan against property processing fees and other charges through the table displayed below:
| Processing Fee | 1% of the loan amount (Maximum Rs. 50,000) + applicable taxes |
|---|---|
| CERSAI Registration Fee |
|
| Prepayment Fee | Nil |
| Pre-Sanction Fee |
|
| Stamp Duty | As applicable for the loan agreement |
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Compare Interest Rates on Loan Against Property for Top Banks & NBFCs
When making a financial decision such as borrowing a loan, it is paramount to compare with similar lenders. So, to help you in this, we are now showing a table of comparison between SBI and other competitors in terms of interest rates and processing fees on an LAP scheme:
| Bank/ NBFC Name | Rate of Interest | Processing Fee |
|---|---|---|
| SBI | 10.00% - 11.30% p.a. | 1% of the loan amount |
| LIC Housing Finance | 9.50% - 11.55% p.a. | 1% of the loan amount |
| IDFC First Bank | 9.00% - 20.00% p.a. | Up to 3% of the loan amount |
| Bank of Baroda | 10.85% - 18.60% p.a. | 1% of the loan amount |
| Axis Bank | 10.40% - 12.75% p.a. | 1% of the loan amount or Rs. 10,000 (whichever is higher) |
| ICICI Bank | 10.85% - 12.50% p.a. | 1.50% of the loan amount or Rs. 11,000 (whichever is higher) |
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Documents Required For SBI Loan Against Property
When applying for a Loan Against Property with the State Bank of India, one of the crucial steps in the process is submitting the necessary documents. These documents are vital for verifying the applicant’s identity, income, and the legal status of the property being pledged. The SBI loan against property documents required list for salaried and self-employed borrowers is given below:
1. For Salaried Loan Applicants
- Address/ Identity Proof: PAN Card, Aadhaar Card, Electricity Bill. Water Bill, Passport, and so on
- Income/ Salary Proof: Latest ITR/ Form 16, Salary Slips for the last 3 months, Bank Account Statements for the last 3-6 months
- Property Documents: Allotment Letter, Occupancy Certificate, Permission for construction, Payment Receipts to the Builder or Seller, and so on
- Other Documents: Duly-filled Application Form affixed with 3 latest passport size photographs, Appointment Letter, Employer Identity Card
2. For Self-Employed Loan Applicants
- Address/ Identity Proof: Aadhaar Card, PAN Card, Passport, and Voter ID Card
- Income Proof: ITR/ Form 16 for the last 3 years, Profit and Loss Account Statements and Balance Sheets for the last 3 years, Savings Account Statement/ Current Statement of the Business Entity for the last 3 to 6 months, Business Profile, Form 26AS
- Property Documents: Allotment Letter, Occupancy Certificate, Permission for construction, Payment Receipts to the Builder or Seller, and so on
- Other Documents: Duly-filled Application Form affixed with 3 latest passport size photographs, Appointment Letter, Employer Identity Card, Partnership Deed if the business entity is in partnership, and the List of Stakeholders
FAQs
The whole process of getting a loan against property from SBI may take anywhere from 1- 2 weeks depending on the documents submitted by the borrower and other formalities.
SBI asks for a decent credit score of 650 and above from those keen to apply for a loan against property.
If an SBI LAP is not repaid on time, it may result in late payment charges, impact the credit score of the borrower, and may even lead to a property auction.
The rate of interest on SBI Loan Against Property ranges between 10.10% - 11.65% per annum.
No, it is not possible to get a 100% loan against property in SBI. However, you can get up to 65% LTV for loans up to Rs. 1 crore and up to 60% LTV for loans between 1 to 5 crore.
SBI follows a systematic approach to notify borrowers about the status of their loan against property application. They will send a formal loan sanction letter to the borrower’s registered address and an email or SMS notification for the same.