When planning to buy or build your dream home, one of the most important financial decisions is selecting the right home loan. Among the most trusted financial institutions in India, the State Bank of India (SBI) offers home loans with competitive terms. Understanding the SBI home loan interest rate and how it compares to other banks can help you make an informed decision.
This guide offers a complete overview of the SBI home loan interest rate, its features, comparison with other lenders, and tips to secure the best deal.
What is SBI Home Loan Interest Rate?
The SBI home loan interest rate is the annual percentage that SBI charges on the amount borrowed for purchasing, constructing, or renovating a residential property. It plays a significant role in determining your EMI (Equated Monthly Installment) and the total amount repayable.
SBI offers both fixed and floating interest rate options, with floating rates being more popular due to their dynamic nature and lower initial costs.
Current SBI Home Loan Interest Rate (2025)
As of the latest updates, SBI’s home loan interest rate ranges are based on various borrower profiles and schemes.
| Loan Type | Interest Rate (Per Annum) | Loan Amount |
|---|---|---|
| Regular Home Loan | 8.40% – 9.45% | Up to ₹10 crores |
| Women Borrowers | 8.40% – 9.40% | Up to ₹10 crores |
| SBI Privilege Scheme | 8.40% onwards | For govt employees |
| SBI Shaurya Scheme (Defence) | 8.40% onwards | For armed forces |
| SBI Maxgain | 8.50% – 9.50% | Overdraft facility |
| SBI NRI Home Loan | 8.55% – 9.55% | For NRIs |
Note: Interest rates vary depending on CIBIL score, loan tenure, and loan amount.
SBI Home Loan Interest Rate Based on Credit Score
Your credit score has a direct impact on the SBI home loan interest rate you are eligible for. SBI categorizes borrowers according to their CIBIL score.
| CIBIL Score | Interest Rate (p.a.) |
|---|---|
| 800 and above | 8.40% – 8.60% |
| 750 – 799 | 8.55% – 8.75% |
| 700 – 749 | 8.70% – 8.90% |
| 650 – 699 | 8.90% – 9.20% |
| Below 650 | Case-by-case evaluation |
Comparison: SBI vs Other Banks (2025)
| Bank | Floating Rate | Fixed Rate | CIBIL-Based Tiers | Women Concession | Key Loan Products & Features |
|---|---|---|---|---|---|
| SBI | 7.50% – 8.45% (EBLR-linked) | – | Lower tiers for high scores; EBLR+ spreads include CIBIL-based slabs | 0.05% concession | Products: Standard Home, Maxgain OD (7.75–8.70%), Top-Ups, Reverse Mortgage, YONO Insta Top-Up |
| Axis Bank | 8.35% – 9.10% (Repo + 2.85–3.60%) | 14% fixed | 751+ CIBIL: 8.35–9.10%; <751: 8.60–9.35% | 0.05% concession to women salaried/self-employed | Products: Super Saver, Fast Forward, Shubh Aarambh, Asha, NRI, Balance Transfer; Floating/fixed mix |
| HDFC Bank | 7.90% onwards (Floating) | – | Profile-based; no public tiers | No outline | Features: Tenure up to 30 yrs, refinancing options, standard floating rates |
| ICICI Bank | 8.00% onwards (EBLR-linked) | 8.65% – 11.20% fixed | Tiered by income, employment & CIBIL | Not specified | Products: Standard, Digital Instant, Fixed/Floating options, loans up to ₹5 Cr |
🔍 Insights at a Glance
- Lowest Floating Rate:
- SBI leads with rates as low as 7.50%, adjusted quarterly via EBLR.
- Axis follows, starting from 8.35% for high CIBIL profiles.
- Fixed Rate Offerings:
- Axis provides a stable 14% fixed rate.
- ICICI also offers fixed rates between 8.65%–11.20% .
- CIBIL-Based Pricing:
- SBI and Axis tailor rates based on credit score tiers (with ranges from prime to below prime) .
- Women Borrower Concessions:
- SBI and Axis both offer a 0.05% rate cut for women borrowers.
- Product Variety:
- SBI includes OD, top-up, and reverse mortgage.
- Axis has diverse schemes including NRI, balance transfers, and low-income (Asha).
- ICICI offers hybrid digital and fixed-rate options.
- HDFC focuses on long-tenure floating products with refinancing abilities.
✅ Which Lender Should You Choose?
- Best rate for high CIBIL: Choose SBI if you’re eligible for their lowest bracket.
- Mixed fixed/floating: Axis and ICICI offer both options with competitive fixed rates.
- Women borrowers: SBI and Axis provide small reductions for female applicants.
- Digital convenience & large loans: ICICI supports up to ₹5 Cr with instant options.
- Long-term floating needs: HDFC is tailored for borrowers seeking flexible long tenures.
SBI offers one of the most affordable home loan rates among major lenders, making it a top choice for many first-time home buyers.
SBI Home Loan Calculator
Types of SBI Home Loans
SBI provides various home loan schemes customized for different borrower needs. All schemes have different SBI home loan interest rate structures.
| Loan Scheme | Features |
|---|---|
| Regular Home Loan | For salaried/self-employed individuals |
| Maxgain | Home loan with overdraft facility |
| Privilege/Shaurya | For government and defense employees |
| NRI Home Loan | Tailored for non-resident Indians |
| Realty Home Loan | For purchasing land and construction later |
| Bridge Loan | For buying new property before selling existing one |
Key Features of SBI Home Loan Interest Rate
- Linked to EBLR (External Benchmark Lending Rate): The rate is currently linked to the RBI Repo Rate.
- Interest calculated on a daily reducing balance: Saves you more compared to monthly reducing balance.
- Special concessions for women borrowers: Usually 5 basis points lower than standard rates.
- No prepayment or foreclosure charges: Floating rate loans come with zero charges.
Eligibility Criteria for SBI Home Loan
Although rates are important, eligibility influences loan approval:
| Criteria | Details |
|---|---|
| Age | 18 – 70 years |
| Employment | Salaried or self-employed |
| Monthly Income | Minimum ₹25,000 (varies by city) |
| Credit Score | Preferably 750 and above |
| Co-applicant (optional) | Can be added for higher eligibility |
A good profile helps secure a lower SBI home loan interest rate and better loan terms.
How EMI is Affected by SBI Home Loan Interest Rate
Here’s an example to illustrate how the interest rate affects monthly EMI:
| Loan Amount | Tenure | Interest Rate | EMI (Approx.) |
|---|---|---|---|
| ₹30,00,000 | 20 years | 8.40% | ₹25,912 |
| ₹30,00,000 | 20 years | 9.40% | ₹27,738 |
A mere 1% difference can increase your EMI by over ₹1,800/month. Hence, securing the best SBI home loan interest rate is crucial.
How to Get the Lowest SBI Home Loan Interest Rate
To ensure you receive the most affordable rate, follow these tips:
✅ Maintain a High Credit Score
Aim for a CIBIL score above 750 to qualify for preferential interest rates.
✅ Opt for Shorter Tenure
A shorter tenure attracts slightly lower interest but higher EMIs.
✅ Consider Joint Application
Applying with a co-applicant improves your eligibility and may help with better interest rates.
✅ Choose Floating Rates
SBI’s floating rates usually start lower and save you more if RBI rates fall.
✅ Apply Online
Sometimes, SBI offers better rates and discounts for online applications.
Floating vs Fixed SBI Home Loan Interest Rate
| Type | Pros | Cons |
|---|---|---|
| Floating | Lower initial rate, benefits from RBI rate cuts | Risk of rate hike in the future |
| Fixed | Predictable EMIs, good for budgeting | May pay more if market rates drop |
Most SBI home loan borrowers choose floating rates linked to the RBI repo rate for flexibility and savings.
Processing Fees and Other Charges
| Fee Type | Amount/Range |
|---|---|
| Processing Fee | 0.35% of loan amount (min ₹2,000) |
| Legal & Valuation | ₹5,000 – ₹10,000 (approx.) |
| Prepayment Charges | Nil for floating-rate loans |
| Late EMI Payment | 2% penalty on overdue amount |
All charges must be factored in while calculating the total cost of borrowing, not just the SBI home loan interest rate.
Documents Required
| Document Type | Examples |
|---|---|
| Identity Proof | PAN Card, Aadhaar, Voter ID |
| Address Proof | Utility bills, Aadhaar, Passport |
| Income Proof | Salary slips, ITRs, bank statements |
| Property Documents | Sale deed, title deed, builder documents |
Proper documentation also speeds up loan processing and improves rate negotiation.
Should You Transfer Your Existing Loan to SBI?
If you are currently paying higher interest elsewhere, a home loan balance transfer to SBI could lower your EMIs. SBI allows existing borrowers from other banks to switch loans and enjoy current SBI home loan interest rate benefits.
FAQs
A. SBI offers home loan interest rates starting at 7.50% per annum, effective from June 15, 2025. The rates vary based on factors like credit score, loan amount, and tenure.
A. SBI’s home loan interest rates are tiered based on your CIBIL score:
750 and above: 7.50% p.a.
700–749: 7.75% p.a.
650–699: 8.00% p.a.
600–649: 8.25% p.a.
Below 600: 8.50% p.a.
A higher credit score can help secure a lower interest rate.
A. Yes, under the “SBI Her Ghar” scheme, women borrowers can avail a 0.05% concession on the prevailing interest rates.
A. SBI offers home loan tenures ranging from 5 to 30 years, depending on the applicant’s age and repayment capacity.
A. SBI calculates interest on a daily reducing balance method, meaning interest is charged only on the outstanding principal, reducing as you make repayments.
A. Yes, the processing fee is 0.35% of the loan amount, with a minimum of ₹2,000 and a maximum of ₹10,000.
A. Yes, SBI offers pre-approved home loans, which can expedite the loan disbursement process.
A. Currently, SBI does not offer a fixed-rate option for home loans. All home loans are offered at floating interest rates.
A. The maximum LTV ratio is 90% for loans up to ₹30 lakh, 80% for loans between ₹30 lakh and ₹75 lakh, and 75% for loans above ₹75 lakh.
A. SBI does not charge any prepayment or foreclosure penalties on home loans, providing flexibility to borrowers.
Conclusion
The SBI home loan interest rate is among the most competitive in India. It offers great flexibility, low rates for high credit scorers, and special schemes for government employees, women, and NRIs. With zero prepayment charges, robust online tools, and India’s largest banking network, SBI remains a preferred lender for home buyers.
Before applying, always compare rates, review charges, and use an EMI calculator to assess affordability. A smart decision today can save lakhs over your loan term.
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