SBI Loan against property interest rates range from 10.10% - 11.65% p.a, basis the required loan amount, your net monthly income and loan to property value. To get the best SBI LAP interest rate, you should have a good credit score and a required loan against property documents. Use the online LAP calculator to check eligible interest rate quotes for SBI loans against property.
On SBI Bank Official Website
Updated: 20-05-2024 03:33:19 PM
The proceeds of SBI Mortgage Loan can be consumed for business, as well as personal requirements including medical expenses, higher education, marriage, travelling, home repairs and working capital financing, procuring long-term assets, expansion of business, etc.
Key features of SBI Loan Against Property:
SBI offers three types of loans against property:
Features of the loan
Loan to Value (LTV) ratio
EMI/NMI ratio
Features of the loan
LTV ratio
Income criteria
The income of co-applicant and rental income can be considered for determining loan eligibility
Features
LTV ratio
Following are the current SBI LAP loan interest rates based on the loan amount applied for:
| Loan Amount | Rate of Interest |
| Up to Rs. 1 Crore | 1.45% + 1-year MCLR = 10.10% p.a. |
| Above Rs. 1 Crore up to Rs. 2 Crores | 2.10% + 1-year MCLR = 10.75% p.a. |
| Above Rs. 2 Crores up to Rs. 7.50 Crores | 2.50% + 1-year MCLR = 11.15% p.a. |
| Loan Amount | Rate of Interest |
| Up to Rs. 1 Crore | 2.10% + 1-year MCLR = 10.75% p.a. |
| Above Rs. 1 Crore up to Rs. 2 Crores | 2.60% + 1-year MCLR = 11.25% p.a. |
| Above Rs. 2 Crores up to Rs. 7.50 Crores | 3% + 1-year MCLR = 11.65% p.a. |
*Current 1-year MCLR of SBI is 8.65% p.a.
Below is the comparison of the SBI Mortgage Loan Interest Rate with LAP interest rates of other lenders. You can compare the rates of interest offered by different lenders to choose the best option:
| Name of the Lender | Interest Rate (% p.a.) |
|---|---|
| HDFC Bank | 9.50% – 11.00% |
| State Bank of India | 10.10% – 11.65% |
| IDFC First Bank | 9.00% – 20.00% |
| Federal Bank | 12.60% |
| Home First | 12.80% – 18.50% |
| Kotak Mahindra Bank | 9.15% – 10.50% |
| PNB Housing Finance | 9.25% – 12.45% |
| Bank of Baroda | 10.85% – 16.50% |
| L&T Housing Finance | 9.60% |
| LIC Housing Finance | 9.70% – 11.55% |
| Godrej Housing Finance | 9.75% onwards |
| ICICI Bank | 10.85% – 12.50% |
| Tata Capital | 10.10% |
| Bajaj Housing Finance | 9% – 14% |
| Axis Bank | 10.50% – 10.95% |
You can use the SBI Loan Against Property EMI Calculator available online to calculate how much EMI you would be paying. To use the tool, follow the steps given below:
Below is an example of SBI Bank Loan Against Property EMI calculation:
| Loan amount to be availed of | Rs. 50 Lakhs |
| Loan tenure opted | 15 years |
| Applicable interest rate | 10.10% p.a. |
| Monthly EMI | Rs. 54,037 |
You can apply for an SBI LAP online by following the steps mentioned below:
The SBI LAP interest rate ranges from 10.10% – 11.65% p.a.
If you meet the following eligibility criteria, you can get a loan against property from SBI at a competitive LAP interest rate SBI with easy approval SBI:
Yes, the applicant can obtain SBI LAP if they own residential property or commercial property in their own name or in the name of spouse/ children/ parents/ siblings.
You can check the features and benefits of taking a Loan Against Commercial Property Online.
SBI offers Loan Against Property to enable the borrower to meet personal or business emergencies.
Personal expenses can include medical expenses, marriage, education, and any other purposeful activity. The borrower undertakes not to engage in speculative activity with the use of a Loan Against Property.
Business expenses include expansion of business, meet day-to-day requirements of working capital, purchase long-term assets, and so on.
Currently, HDFC Bank, IDFC First, SBI and Kotak Mahindra Bank offer the lowest interest rates on property loans.
The salaried person has a fixed recurring income. The source of income is a stable one. On the other hand, a self-employed person could have a higher income as compared to a salaried person. However, profit is not a regular one. There can be wide fluctuations in the monthly income. Therefore, SBI considers a self-employed person as a riskier proposition when compared to a salaried individual. It explains the difference in the interest rate structure.
The following factors play a critical role in deciding the applicable interest rate on Loan Against Property.
SBI considers all types of income when deciding the eligibility for a Loan Against Property.
The distinction is because of the stability of the income source. The more stable the source of income, the less is the risk.
It depends on the loan tenure you agree with the bank. The bank cannot go beyond 15 years for the repayment of a Loan Against Property. If you decide for 15-year repayment tenure, any upward revision in the interest rate will cause the EMI to increase. However, if your loan tenure is less than 15 years, the bank can keep the EMI constant and increase the mandate accordingly.
SBI has a specific EMI/NMI concept where the EMI on Loan Against Property cannot go beyond a specific proportion of the net monthly income. Accordingly, the bank has to fix the tenure or adjust the loan amount.
Yes, you can offer the same property subject to satisfying the LTV ratio of both the loans put together. This example can help you to understand better.
If you satisfy the income criteria for a home loan and Loan Against Property, the maximum credit you can get will be calculated as follows.
If you meet the following eligibility criteria, you can get a loan against property from SBI at a competitive LAP interest rate SBI with easy approval SBI:
LAP loan interest rate SBI as well as SBI commercial property loan rate of interest vary between 10.10% – 11.65% p.a.
