SBI Home Loan: Last year, the Reserve Bank of India (RBI) cut the repo rate by a total of 1.25 percent. This directly benefited the common people, as the reduction in the repo rate made bank loans cheaper. Interest rates on home loans, car loans, and other loans decreased, which also reduced people’s monthly EMIs.
In this context, the country’s largest public sector bank, State Bank of India (SBI), is now offering home loans at very affordable interest rates. SBI is currently offering home loans at a starting interest rate of 7.25 percent.
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How much salary is required for a home loan?
If you want to take a ₹40 lakh home loan from SBI at an interest rate of 7.25 percent for 30 years, your monthly salary should be at least ₹55,000. However, this is only possible if you do not have any other loans running in your name.
At this interest rate and tenure, the monthly EMI for a ₹40 lakh home loan comes to approximately ₹27,500. Banks generally assume that the home loan EMI can be up to about 50 percent of your salary.
Credit score for a home loan
Having a good credit score is extremely important to get a home loan from any bank. If your credit score is weak, the bank may even reject your loan application. In addition, the bank also checks your past loans and payment history.
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Having a good credit score also increases your chances of getting a discount on the interest rate. Often, banks are willing to offer loans at lower interest rates to customers with a strong credit record.
Compare for the best deal
Before taking a home loan, don’t rely on just one bank. Compare the offers of different banks and apply where you get better interest rates and terms. This can save you lakhs of rupees in the long run.
