SBI Home Loan Eligibility Calculator

Are you aiming to own a house to strengthen your personal assets? If so, you would also be aiming to secure a home loan for the same. Why not consider a home loan from SBI, where interest rates start as low as 8.25%? You can also use the Cleartax SBI home loan eligibility calculator to determine the amount of loan you may be eligible for.  Keep reading this blog to gain detailed insights. 

What Is SBI Home Loan Eligibility Calculator?

The SBI Home Loan Eligibility Calculator is an online tool designed to help you assess your eligibility for a home loan based on key financial parameters. SBI evaluates age, income, credit score, employment status, and existing financial obligations to determine repayment capacity. This calculator simplifies the process by providing an instant estimate, allowing you to check your eligibility before applying. 

How To Use SBI Home Loan Eligibility Calculator?

To use the Cleartax SBI home loan eligibility calculator, follow these simple steps:

• Enter your monthly income. 
• Enter the desired tenure for your SBI home loan.
• Enter the interest rate.
• Enter any other EMIs that you may have. 
• The calculator will automatically display the total loan amount you are eligible for, along with the monthly EMI payable for the same. 

How Is SBI Home Loan Eligibility Calculated?

SBI calculates home loan eligibility by considering various factors such as your monthly income, current age, credit score, any existing loan obligations, and the years remaining until your retirement. 

Let's assume that Mr Roy aims to purchase a home loan, with the following parameters in place: 

• Monthly Salary: Rs 50,000
• Tenure: 24 years (24 months)
• Miscellaneous Expenses: Rs 10,000
• Interest Rate: 10%

Step 1: Calculate the maximum EMI you can afford

Since banks allow you to use 50% of gross monthly income for loan EMI:

EMI=[50000×(50/100)]-10000 = 15000 

So, you can afford to pay ₹15,000 per month as EMI.

Step 2: Input values in the formula

The loan eligibility formula is:

P = EMI x [(1+r)(^n) - 1]
            r x (1+r)^n

Where:

• P = Loan amount (we want to find this)
• EMI = ₹15,000 (from Step 1)
• r = Monthly interest rate = 10% per year → (10/12) x (1/100) = 0.00833
• n = Loan tenure in months = 24 years → 2 x 12 = 24 months

Adding these values to the formula, 

P = 15000 x [(1+0.00833)(^24) - 1]
        0.00833 x (1+0.00833)^24

P= ₹3,25,062.82

Therefore, the final loan amount Mr Roy is eligible for is ₹3,25,062.82

SBI Home Loan Eligibility Criteria

The following mentions the eligibility criteria for availing a home loan from SBI:

SBI Home Loan Eligibility For Salaried Individuals 

• The monthly salary of an individual plays an important role in determining the required amount to avail of a home loan. 
• The State Bank of India's home loan eligibility criteria depend on various factors, including credit score, age, and desired income or salary. 
• With proper use of the Cleartax SBI Home Loan eligibility calculator, you can find out the loan amount you are eligible for considering your dmonthly income rangely income. 

SBI Home Loan Eligibility for Self-Employed

Meeting the SBI home loan eligibility criteria is easier and hassle-free for self-employed. Let's look into the eligibility criteria in detail below:

• Nationality: Indian resident 
• Minimum Age: 18 years
• Loan Amount: Minimum- Rs. 50,000 and Maximum – Rs. 50 Crore
• Loan Tenure: Maximum of 30 years
• Employment: Any one of the following:
  • One of the directors of a company
  • Proprietor of a Proprietorship firm
  • Any one partner in a partnership firm
• Status of Company/Firm
  • Should be the earner of net profit during the last 2 years
  • Should be in existence for 3 years minimum
  • Credit facilities should be standard and regular. The existing bankers however should provide an opinion report
  • If the property is acquired through joint ownership of the Proprietor and Proprietary Firm, the firm should be the borrower and remain free from debts

SBI Home Loan Eligibility Based On Age

The age of an applicant is another crucial factor to look into while determining Home Loan eligibility with SBI. The maximum Home Loan repayment tenure of State Bank of India is 30 years. The table below displays the maximum tenure for SBI Home Loan according to different ages:

SBI Home Loan Eligibility Based on Value of Property

The loan-to-value (LTV) ratio is the desired loan amount disbursed considering the value of the property you decide to purchase. Below is the LTV ratio applicable for different loan amounts:

• Loan amount up to Rs. 20 Lakh: 90%
• Loan amount above Rs. 20 Lakh: 80%

SBI Home Loan Eligibility Based On Credit Score

SBI Home Loan eligibility also depends significantly on credit score. Maintaining a higher credit score causes low rates of interest and vice versa. The table below showcases the ratings applicable for different credit scores:

• 750 and above: Good 
• 600 to 750: Average
• Below 600: Poor

Types of SBI Home Loan 

Here is a detailed overview of the different types of SBI home loan schemes:

• SBI Flexipay Home Loan: Individual investors with a maximum age of 45 years can apply for this loan scheme whereas, the maximum age of loan repayment is 70 years
• SBI Shaurya Home Loan: Employees employed in the defence sector can avail this loan. SBI offers them long repayment tenure with low rates of interest in comparison with general customers
• SBI Privilege Home Loan: Employees involved in the State and Central Government can opt for this loan scheme. The individuals in public sector banks and Public Sector Undertakings (PSUs) are also considered.
• SBI Smart Home Top-Up Loan: Maintaining a CIBIL score of 550 and above is mandatory for this scheme. Alongside this, investors opting for a Home Top-Up Loan should have no other active loans with a repayment history of more than one year.
• SBI Tribal Plus: The minimum age for investors should be 21 years whereas the maximum age is 60 years. Individual investors under this scheme can opt for a maximum loan tenure of 15 years.

Factors Affecting SBI Home Loan Eligibility

There are several factors to consider affecting the SBI Home Loan eligibility. Let’s consider these factors in detail below:

• Age: While approving a Home Loan, SBI makes sure to consider the age of the borrower. At times, it becomes challenging for SBI to approve loans for older applicants for a long period. However, younger people qualify the eligibility for long loan tenure.
• Documentation: As evidence of your loan application, make sure to submit tax returns, bank statements, and references of employers, considering your job situations
• Income: For easy loan approval of loan application, having a regular and steady source of income is mandatory. SBI prefers offering quick and easy loan applications to applicants maintaining a steady source of income to lower risk
• Rate of Interest: SBI Home Loan eligibility depends on the rate of interest offered on your loan. With low rates, your eligibility might increase whereas, with high rates, the eligibility can decrease.
• Existing Loans: Lenders consider your current debt while determining your eligibility for Home Loan. For smooth loan approval, make sure to maintain your debt-to-income ratio within 50% and 60%
• Credit Score: SBI assesses your repayment behavior and looks into your credit history. With a negative credit report, individual investors face difficulty in getting a Home Loan approved

How To Improve Your Home Loan Eligibility?

There are several factors to consider for improving your Home Loan eligibility. Those factors include:

• Credit Score: Maintaining a high credit score allows for faster and easier loan approval.
• Debt-to-income Ratio: The debt-to-income ratio determines how much percentage of your monthly income is allocated towards repayment of debts. The lower will be your debt to income ratio, the higher will be your Home Loan approval chances from SBI
• Down Payment: Making a high down payment during loan application results in lowering the loan amount and your monthly mortgage payment also becomes more manageable
• Co-signing Options: Maintaining a good credit score or debt-to-income ratio will raise your chances of loan approval and securing a co-signer will also be easier. If you fail to meet obligations, the co-signer takes the responsibility of repaying loans.

To conclude, opting for a Home Loan has become easier in recent days, but not everyone is eligible for the same. Thus, before opting for an SBI Home Loan, make sure to consider the SBI Home Loan eligibility calculator to determine the loan amount. This calculator is an easy online tool that lets you determine the loan amount once you provide the necessary information such as your age, status of employment, credit score, and citizenship. SBI, similar to other banks, provides strict Home Loan eligibility criteria to make sure to allocate funds to the right individual.