State Bank of India gives a home building loan to customers. Using the loan, you can buy, renovate, extend or construct a house. No one knows how much costlier it is for a person to manage a home loan, but not until you get a lender like SBI. With the help of the SBI home loan interest rate, you can make your home affordable. The interest rate is charged on the Marginal Cost of fund-based lending rate of SBI that is currently 7.50%. Read to find out how the SBI home loan interest rate is charged and what are their benefits on your equated monthly installments.
What makes my SBI home loan interest rate low?
The following could be the reasons by which you can have a low-interest rate to your borrowed amount from SBI.
- Co-Borrower: At one point when you need to settle your family by owning a house SBI helps you. And by getting an SBI home loan with a co-borrower nothing can be better. The income of the co-borrower increases your eligibility to borrow and makes you suitable for an affordable rate of interest.
- Credit Score: Your good payment record helps you borrow the desired amount at a negotiable interest rate. When someone’s credit score is not ignorable SBI uses it, and helps the user borrow the right amount with an effective rate of interest.
- Floating Nature: The SBI home loan interest rate is of the floating type that helps you have a flexible EMI. You can get a lower EMI, because the interest rate is charged as on the reducing balance.
Pay on time for benefits!
You must pay your SBI home loan EMI n time before the due date of the payment. And if you do so, you can avoid late payment charges and build a good credit history for yourself. The processing of the SBI home loan takes a few days and disburse in your account in a month only. And if you have borrowed a loan for the construction, you can do a pre-EMI payment. In this, you can pay the SBI home loan interest rate only and withdraw funds as per your construction requirements. The tenure remains the same but the burden is low.
SBI gives a maximum duration of 30 years to every customer for the home loan. And it is based on your age that on what period you can pay the complete loan with the charged interest rate. If you reach the age of retirement during the loan tenure, then it is the final year up to which you can pay the SBI home loan.
Method to pay the SBI home loan interest rate!
You can do the EMI payment of your SBI home loan using the following services that are mentioned below have a look at them for a smooth payment.
Electronic Clearing Service (ECS):To pay your EMI from any bank account rather than SBI, people opt for the ECS. Using the ECS service, you can pay for your SBI home loan automatically. Because the funds get debited from your linked account. To use the ECS service, you need to fill up an ECS form and submit it to the SBI branch along with a few documents like bank statements.
So use the ECS service and get the advantage of SBI home loan interest rate and live happily in your own house.