Why should you prefer SBI Home Loan?

A home loan is a big financial move that can turn your housing goals into reality. In the present times of inflation, when every other thing is over the top expensive, buying a home is in itself a big deal. Though, to help people figure out a balance between their housing dreams and financial abilities, both private and public Banks and NBFCs provide home loans. Out of all, the SBI home loan is the most preferred and popular in India. The State Bank of India is one of the biggest banks in the country. It deals in all banking activities like lending, deposits, investments, and foreign exchange, amongst others, and excels in all of its banking products. Yet, SBI Home Loan is the most sought after product, which is preferable by a lot of people. But what is it that makes SBI home loan popular? And why should you choose it over other loans?

Reasons to choose SBI Home Loan

SBI home loans is a preferable home loan product to experience your dream home, due to a variety of reasons as listed below:

Affordable Interest rates: The home loan market is filled with a variety of lenders, ranging from banks to NBFCs. The interest rates charged by all these lenders are different and comparative from each other. Out of all lenders, presently, SBI provides home loans at the most affordable interest rates. The SBI home loan interest rate is 7.90%, which is the lowest in comparison to other lenders in the market. The reason for lower interest rates by SBI is that it works on a bigger platform. Due to a large scale of operation, the Bank is able to cover its lending cost even at lower rates.

Further, SBI offers home loans at floating rates of interest where the EMIs are lowered if the market trend falls. Besides, the interest is charged on a daily reducing balance, which means it is calculated on the remaining principal amount at the end of each day. The Bank also provides concessional interest rates to women. These factors make SBI Home Loan very affordable for home loan borrowers.

Multiple loan offers: SBI provides loans that are specialized according to the needs of different people. The bank provides certain offers based on previous credit and banking activities, like overdraft facility on home loans through SBI Maxgain loan, SBI Bridge home loan product for upgrading to a new home loan, Pre-approved home loans, SBI Top Up loan to borrow an amount above their home loan.

Further, various home loan products that are exclusively designed based on factors like occupation and gender. SBI Her Ghar home loan product is designed for women home buyers. The bank offers SBI home loan products like Tribal Plus Scheme and SBI NRI Home Loan products that are meant to provide housing alliance to people living in tribal areas and NRIs, respectively. Further, the loan schemes are also designed based on occupations like the SBI FlexiPay Home Loan Scheme that is meant for young professionals and allows easy repayment of loans to reduce financial liability; for army officers, the bank provides SBI Shaurya Home loan and provides Privileged home loan for government employees.Thus, SBI provides a multiple home loan option that can cater to the borrower’s need, which makes SBI home loan borrower friendly.

Easy Prepayment facility: The bank provides flexible repayment option, to repay the loan in 35 years, by allowing the borrower to opt for a tenor according to the EMI payment ability. Further, many people prefer prepaying a loan in advance, to get rid of the debt as soon as possible. For this, many banks charge prepayment penalties in order to cover the amount that was about to be earned with regular interest charged on principal amount through EMIs.

However, SBI home loan buyers need not worry about it. There are no prepayment or foreclosure charges imposed on prepaying a loan in advance. After the prepayment, interest is charged only on the remaining amount. Thus, borrowers can easily reduce their financial burden by both repaying and pre-paying the loan as per their capacity.

Bank’s assistance and legal process: Another factor that distinguishes SBI from other home loan lenders is the quality assistance that SBI provides to its home loan borrowers. This assistance is provided, especially in the case of pre-approved home loans, wherein you can choose a property pre-approved by the bank, to make the home loan process simpler. By filtering out your requirements, in terms of budgets, amenities, and location, SBI assists borrowers through its online home search portal SBI Realty website.

Further, SBI’s legal process in verifying the property is considered the best out of all. It is believed if SBI approves a property, then it surely is out of any legal issues, because the bank performs all legal verification processes of the property with due diligence. Thus, SBI provides quality service to its customers by providing personal assistance and legal authentication at the same time.

Trust and Transparency: The trust and transparency factor is an important point that makes SBI a desirable option for home loans. In India, many people still believe in the idea of ‘old is gold,’ thereby SBI being a former competitor in the Banking market is trustworthy because of its experience and withstanding. Amongst all the existing banks, it is the oldest bank in the country.

While many lenders tend to charge extra charges from the borrower, which are not informed of in advance,  no hidden charges are involved in SBI home loan products. Indeed the processing charges are limited and informed in advance to the borrowers. In addition, the State Bank of India launched its repo rate linked home loan product, which added more to the transparency factor, as now the interest rates are directly affected by the repo rate.

When opting for a loan, the borrower needs to rely on a lender who is authentic and legitimate, and SBI is both of these. Thus, due to this, the housing loan interest rates is a preferable option.


As per the points mentioned above, it can be concluded that SBI Home loan is the best home loan product that can bridge your housing dream and reality together. Home loan by SBI is reliable, trustworthy, affordable, and convenient because it is designed keeping in mind the bank’s values of trust, excellence, transparency, and integrity. However, before opting for a home loan, no matter how good an offer is, and how authentic a lender is, the borrower should first analyze his own need of a loan, and his or her financial status.

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