Headquartered in Mumbai, the State Bank of India(SBI), is an Indian multinational, public sector banking and financial services statutory body. It is the largest bank in the nation by asset size and caters to a massive base of 42 crores+ customers, through 24,000 branches and 59,000+ ATMs across the globe.
What makes SBI a leader in its own right is the various account types, numerous housing, and other loan schemes, as well as other features that it offers in a bid to cater to customers from all walks of life. The Home Loan options offered by the bank helps meet the financial assistance needs of a wide array of housing projects, including but not limited to:
- Purchasing a plot of land
- Purchasing a new house
- Purchasing an existing house or apartment
- Constructing a new house or apartment
- Renovation of an existing residential property
Some of the ongoing SBI Home Loan schemes include –
- SBI Regular Home Loan
- SBI Privilege Home Loan
- SBI Yuva Home Loan
- SBI NRI Home Loan
- SBI Shaurya Home Loan
- SBI Pre-Approved Home Loan
- SBI Realty Home Loan
- SBI Bridge Home Loan
- SBI Corporate Home Loan
- SBI Tribal Plus Home Loan
- SBI Gram Niwas Home Loan (Rural Housing Loan Scheme)
SBI Yuva Home Loan – Features
One of the most popular Housing Loan schemes offered by the bank is the SBI Yuva Home Loan, which is specially designed to cater to the financial needs pertaining to the homes of young aspirants aged between 21 to 45 years.
Let us take a quick look at some of the salient features of this loan below.
- SBI Yuva Home Loan is readily offered to salaried individuals working in-
- Private Sector Companies
- Government Companies
- Multi-National Companies
- Public Sector Undertakings
- Government Employees
- The Home Loan amount offered under the SBI Yuva Home Loan Scheme is 2% higher than that offered under the bank’s standard Home Loan schemes.
- From the date of the loan disbursal, until the end of the first 36 months, the loan borrower only needs to pay the interest. This makes SBI Yuva Home Loan, one of the only Housing Loans in India, with a Moratorium Period.
- The borrower is required to repay the principal amount of the loan only after the moratorium period of 36 months, making it more viable for young borrowers who may not enjoy a high income at the time of taking the loan.
- This Home Loan can be borrowed by a single individual, or with a family member as co-applicant.
- The scheme comes with no hidden costs, making it easier for the borrower to gauge the extent of expenses.
- In case the need be, one can also opt for paying the premium for Home Loan insurance cover along with the Home Loan EMI.
- As is the case with any standard Home Loan, the property on which the loan is acquired is mortgaged to the bank. In this case, however, since the bank offers a higher loan amount, the borrower may be asked to offer additional assets as collateral.
SBI Yuva Home Loan Eligibility
To be eligible for procuring a Housing Loan under the SBI Yuva Home Loan Scheme, the borrower must be:
- Between 21 and 45 years of age
- Have a minimum monthly income of Rs. 30,000 (excluding the rental income expected to be earned from the proposed property)
- Be a salaried employee in an MNC, Private Sector Company, PSU, or Government undertaking
SBI Yuva Home Loan – Repayment Tenure
SBI offers extended repayment tenure of up to 30 years. However, the bank mandates it for the borrowers to repay the loan in its entirety, before reaching the age of 70 years. Hence, a person who is 45 years of age at the time of acquiring a loan can only avail of a repayment period of up to 25 years.
SBI Yuva Home Loan – Processing Fee
- For loan amounts of up to Rs. 25 lakh, the bank charges a processing fee of 0.25% or Rs. 1,000, whichever is higher.
- For loan amounts of between Rs. 25 Lakhs and Rs. 75 lakhs, the processing fee levied by the bank is Rs. 6,500.
- For loan amounts of Rs. 75 lakhs and above, the bank levies a processing fee of Rs. 10,000.
SBI Yuva Home Loan – Prepayment Charges
The bank does not levy any prepayment penalty, thus encouraging the borrower to pay surplus funds towards the principal amount as and when possible.
So, now have a fair idea regarding this one-of-its-kind Home Loan product. Whether you have are planning to buy a residential plot or property, you must use professional help and make the best decision based on your budget and needs.