SBI Home Loan

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SBI Home Loan Highlights

SBI home loan offers flexible terms, competitive interest rates, and high loan amounts, making it an ideal choice for aspiring homeowners.

Category	Highlights
Interest Rate	8.00% p.a. onwards
Loan Amount	90% of the Loan Amount
Loan Tenure	30 years
Processing Charges	0.35% of the loan amount + GST Minimum: ₹2,000  Maximum: ₹10,000

SBI Home Loan Interest Rates

SBI offers home loans at interest rates starting from 8.50% p.a. These rates vary based on factors such as CIBIL score, loan amount, occupation profile, and the specific home loan scheme you choose.

Home Loan Type	Home Loan Interest Rates
SBI Regular Home Loan	8.50% p.a. – 9.65% p.a.
SBI Maxgain (Overdraft)	8.25% p.a. – 9.15% p.a.
SBI Tribal Plus Home Loan	8.60% p.a. – 9.55% p.a.
SBI Home Loan Top Up	8.30% p.a. – 10.80% p.a.
SBI Home Loan Top Up (OD)	8.50% p.a. – 9.45% p.a.
SBI Loan Against Property	9.50% p.a. – 10.80% p.a.
SBI Reverse Mortgage Loan	11.05% p.a. onwards
SBI YONO Insta Home Loan Top Up	8.85% p.a. onwards

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Compare Home Loan Interest Rate Offered by Top Banks

Comparing home loan interest rates from leading banks helps you identify affordable financing options. Get a clearer view of each lender’s terms and choose the best home loan that matches your budget and financial goals.

Bank	Up to Rs. 30 Lakh	Above Rs. 30 Lakh to Rs. 75 Lakh	Above Rs. 75 Lakh
SBI Bank	8.00% p.a. onwards	8.00% p.a. onwards	8.00% p.a. onwards
HDFC Bank	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards
LIC Bank	8.50% – 10.35% p.a.	8.50% – 10.55% p.a.	8.50% – 10.75% p.a.
ICICI Bank	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards
Kotak Mahindra Bank	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards
Punjab National Bank	8.50% – 11.05% p.a.	8.50% – 11.05% p.a.	8.50% – 11.05% p.a.
Bank Of Baroda	8.40% onwards	8.40% – 10.65% p.a.	8.40% – 10.90% p.a.
Bajaj Housing Finance	8.50% p.a. onwards	8.50% p.a. onwards	8.50% p.a. onwards
Axis Bank	8.75%-10.30% p.a.	8.75%-10.30% p.a.	8.75%-10.30% p.a.
Bank of India	8.40% p.a onwards	8.40% p.a onwards	8.40% p.a onwards
TATA Capital	8.75% p.a. onwards	8.75% p.a. onwards	8.75% p.a. onwards

SBI Home Loan Processing Fees

SBI takes processing fees to cover the cost of reviewing your documents and assessing your loan application.

Home Loan Type	Processing Fee
Home Loans – Regular	0.35% of the loan amount + GST Minimum: ₹2,000  Maximum: ₹10,000
Other Home Loan Products (NRI, Realty, Maxgain, etc.)	0.35% of the loan amount + GST Minimum: ₹2,000  Maximum: ₹10,000
Home Top-Up Loan	0.35% of the loan amount + GST Minimum: ₹2,000  Maximum: ₹10,000
Personal Loan against Property (P-LAP)	1% of loan amount + Tax Maximum: ₹5,000 + Tax
YONO Insta Home Top-Up Loan (Digital Product)	₹2,000/- plus GST
Reverse Mortgage Loan	0.50% of loan amount Minimum: ₹2,000  Maximum: ₹10,000
Earnest Money Deposit (EMD) Scheme	0.50% of loan amount
Suraksha Loan	NIL
Privilege & Shaurya Home Loans	NIL
Apon Ghar (HL up to ₹15 Lakh)	NIL
Kerala Govt Employees Home Loans scheme	NIL

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SBI Home Loan Other Fees and Charges

SBI applies various fees and charges on its home loans. Besides processing fees, borrowers may also have to pay administrative costs, legal fees, and prepayment charges.

Charges/Reason	Details
CERSAI Registration Charges	₹100 + GST
Fee for Switching to Current Card Rate	₹5,000 + GST
Safe Custody Charges	₹1,000 + GST per quarter or part thereof for delayed collection of original title deeds (beyond 60 days).
Conversion Charges for Switching Loan	Switching loan from MCLR/Base Rate/SBAR to EBLR is allowed at ₹1,000 per account + GST.
Penalty for Failed/Non-Payment of EMI	₹250 + GST per EMI missed
Penalty for Cheque Returned (Insufficient Funds)	₹500 + GST
Penalty for Failed SI/NACH	₹250 + GST per failed SI/NACH transaction

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Types of Home Loans Offered by SBI

SBI understands that owning a home is a cherished goal for everyone. SBI home loan schemes are thoughtfully designed to meet your unique needs, offering flexible terms and competitive rates.

SBI General Home Loan

• Enables the purchase of ready-built and under-construction properties, including pre-owned homes.
• Offers a variety of options such as purchase of a plot, plot plus construction, home construction, extension, or repair/renovation.
• Suitable for those looking to take over an existing home loan from another lender.
• Designed to cater to various housing needs under a single umbrella.

SBI Flexipay Home Loan

• Provides higher loan eligibility exclusively for salaried borrowers (up to 20% more eligibility).
• Allows borrowers to pay only the interest amount during the moratorium (pre-EMI) period.
• Features step-up EMIs that gradually increase based on anticipated growth in the borrower’s income.
• Ideal for young earners looking for a higher loan amount with flexibility in repayments.

SBI NRI Home Loans

• Tailored for Non-Resident Indians (NRIs) investing in residential properties in India.
• Offers competitive interest rates and structured repayment terms.
• Facilitates investment through loan rather than personal funds, allowing NRIs to use their capital for other potential returns.
• Streamlined documentation and support catering to the unique requirements of NRIs.

Read More: SBI NRI Home Loans

SBI Privilege Home Loan

• Exclusively designed for government employees (Central or State Government, PSUs, PSBs).
• Eligibility considers pensionable service, income, repaying capacity, age, assets, liabilities, and proposed property cost.
• Offers interest concessions when the loan repayment is arranged via Check Off (salary deduction).
• Focused on making homeownership more accessible to government sector employees.

Read More: SBI Privilege Home Loan

SBI Shaurya Home Loan

• Specially dedicated to the Army, Navy, and Air Force personnel.
• Offers lower interest rates and extended repayment options tailored to the needs of defence employees.
• Provides longer loan tenures, enabling a more manageable repayment structure.
• Also extends interest concessions when the repayment is facilitated via Check Off.

Apply For Shaurya Home Loan Now

SBI Pre Approved Home Loan

• Offers prior sanction of home loan limits before finalizing the property.
• Assessed based on the applicant’s income details, providing clarity on the maximum loan amount available.
• Empowers customers to negotiate confidently with builders or sellers.
• Requires a non-refundable processing fee, similar to the standard home loan fee, payable at the time of sanction.

SBI Realty – Plot Loan

• Enables customers to purchase a plot with the goal of constructing a residential property.
• Requires house construction to be completed within three years from the date of loan sanction/disbursement.
• Allows an additional home loan for building the house on the purchased plot.
• Offers loan amounts of up to INR 15 crores and provides a repayment period of up to 10 years.

Read More: SBI Plot Loan

SBI Home Loan Top Up

• Available for existing SBI home loan customers seeking additional funds for personal needs.
• Offers competitive interest rates while ensuring the funds are not used for speculative purposes.
• Can be used for a variety of purposes such as renovation, education, or other personal requirements.
• Provides a convenient way to leverage existing home loan relationships.

Read More: SBI Home Loan Top Up

SBI YONO Insta Home Top Up

• A fully digital top-up loan option accessible via the YONO platform for pre-selected customers.
• Requires no paperwork or branch visits; ensures swift and hassle-free processing.
• Available 24/7 with an overdraft facility for additional convenience.
• Intended for personal use, making it a flexible solution for urgent financial needs.

SBI Home Loan to Non-Salaried Interest Rates

• Specifically crafted for self-employed individuals and non-salaried professionals.
• Supports home construction, acquisition of new or pre-owned residential properties, and takeover of existing home loans.
• Covers repairs, renovations, and extensions, providing comprehensive home financing.
• Aims to offer optimum loan value and repayment flexibility for non-salaried segments.

SBI Tribal Plus Home Loan Interest Rates

• Designed for residents of hilly or tribal areas who may not have land for mortgage.
• Enables purchase or construction of a new house/flat without mortgaging the land.
• Permits loans for buying an existing property up to 10 years old, or for repairs and extensions of existing homes.
• Relies on third-party guarantees instead of traditional land mortgage, ensuring broader access to housing finance.

SBI CRE (Commercial Real Estate) Home Loan Interest Rates

• Applicable when an individual or family already owns two homes and seeks a loan for the third home onwards.
• Restricts the total number of home loans (including CRE home loans) to five.
• Caters to those looking to expand their portfolio with additional residential properties as an investment.
• Maintains clear guidelines to ensure responsible lending and manageable repayment structures.

SBI Maxgain

• Home Loans under SBI Maxgain are sanctioned as an Overdraft facility.
• Customers are required to remit Equated Monthly Instalments (EMIs), similar to regular Home Loans.
• The Drawing Power of the Overdraft is reduced monthly by the principal component of the EMI.
• The reduction in Drawing Power ensures the Overdraft is fully liquidated by the end of the loan tenure.
• The interest component of the EMI paid by the customer services the interest obligations on the Overdraft.

SBI Reverse Mortgage

• Designed to provide an additional source of income for senior citizens in India.
• Available to senior citizens owning a self-acquired or self-occupied residential property in India.
• Especially beneficial for seniors without sufficient income to support their living expenses.
• The bank pays the borrower (or both borrowers in the case of a living spouse) against the mortgage of their residential property.
• Payments are made regularly to the borrower(s) during their lifetime.
• The borrower is not required to service the loan during their lifetime.

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SBI Home Loan EMI Calculator

EMI is a fixed monthly amount that you are required to pay to the bank until your home loan is fully repaid. 

Calculate your home loan EMI and estimate your monthly repayments. You can adjust loan amounts and tenures, and make well-informed decisions before committing to the bank.

How to Calculate SBI Home Loan EMI?

Home loan EMI is calculated using a mathematical equation:

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

Where:
P = Principal (loan amount borrowed)
r = Interest rate 
n = Total number of monthly installments (loan tenure in years*12)

Example: Case Study | Home Loan EMI 20 vs 30 Years

Aman, a young professional living in Mumbai, has just found his dream home – a spacious 3BHK apartment near his workplace. He decides to take a home loan from SBI to finance the purchase. 

Before signing the loan agreement, Aman wants a clear picture of how much he’ll need to pay every month. To figure this out, he calculates his EMI using the loan’s details.

Home Loan Amount: ₹50,00,000 (₹50 lakh)
Rate of Interest: 8.35% p.a.

But, he is considering two options:

1. A 20-Year Loan (240 months)
2. A 30-Year Loan (360 months)

Longer Tenure = Lower EMI = Higher Interest Payments

Let’s apply the EMI formula to both scenarios:

Scenarios	Home Loan Amount	Interest Rate	Tenure	EMI	Interest Payment	Total Payment
Scenario 1	₹50,00,000	8.35% p.a.	20 years	₹42,918	₹53,00,236	₹ 1,03,00,236
Scenario 2	₹50,00,000	8.35% p.a.	30 years	₹37,915	₹86,49,548	₹ 1,36,49,548

Which Option Is Better and Why?

If Your Goal Is Long-Term Savings: Opt for the 20-year loan. 

• Although the monthly EMI is higher, your total interest outflow is much lower. 
• Over time, you save more than ₹33 lakh in interest compared to the 30-year option. 
  

If Your Goal Is Immediate Affordability: Choose the 30-year loan. 

• You’ll pay a lower EMI each month, easing short-term financial burden. 
• However, this comes at a significant long-term cost, as you’ll end up paying much more in total interest over the life of the loan.

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SBI Home Loan Eligibility Criteria

Before applying for a home loan, it’s essential to understand the eligibility criteria. Here’s the essential eligibility checklist set by SBI:

SBI General Home Loan/ Home Loan Balance Transfer/ Pre-Approved Home Loan

Criteria Category	Requirements
Age	18 – 70 years
Nationality	Indian

SBI NRI Home Loan

Criteria Category	Requirements
Age	18 – 70 years
Nationality	NRI/ PIOs

SBI Flexipay Home Loan

Criteria Category	Requirements
Age	Minimum: 21 years Maximum to Apply: 45 years Maximum to Repay: 70 years
Nationality	Indian

SBI Privilege Home Loan

Criteria Category	Requirements
Age	18 – 75 years
Nationality	Indians
Job profile	Government employees working with: Central or State Government Public Sector Banks Public Sector Undertakings of Central Government Other individuals with pensionable service.

SBI Shaurya Home Loan

Criteria	Details
Minimum Age	18 years
Maximum Age	75 years
Nationality	Resident Indian
Job Profile	Army and Defence Personnel

SBI Realty Home Loan – Plot

Criteria	Details
Minimum Age	18 years
Maximum Age	65 years
Nationality	Indian

SBI Top-up Home Loan

Criteria	Details
Minimum Age	18 years
Maximum Age	70 years
Nationality	Resident Indian/NRIs

SBI YONO Insta Home Top-up Loan

Criteria	Details
Eligibility	Pre-selected customers based on various credit checks such as satisfactory repayment, residual loan tenure, etc.

SBI Home Loan to Non-Salaried-Differential Offerings

Criteria	Details
Minimum Age	18 years
Nationality	Resident Indian
Job Profile	Non-Salaried: If the applicant is a proprietor in a proprietorship firm, a partner in a partnership firm, or a director in a company, the company/firm: – Should be in existence for at least 3 years. – Should have earned net profit in the past 2 years. – Should have regular and standard existing credit facilities. – If the proposed house property is jointly acquired by the proprietor and the firm, the firm should be debt-free or an existing borrower.

SBI Tribal Loan

Criteria	Details
Minimum Age	21 years
Maximum Age	60 years
Nationality	Resident Indian

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Documents Required For SBI Home Loan

When applying for a home loan with SBI, you will need to provide specific documents that verify your identity, income, and property details. Below is a detailed list:

Income Proof

Salaried Applicant/Co-applicant/Guarantor	Self-Employed Applicant/Co-applicant/Guarantor
Salary Slip or Salary Certificate of last 3 months	Business address proof
Copy of Form 16 for last 2 years or IT Returns for last 2 financial years, acknowledged by IT Dept.	IT Returns for last 3 years
	Balance Sheet & Profit & Loss Account for last 3 years
	Business License Details (or equivalent)
	TDS Certificate (Form 16A, if applicable)
	Certificate of qualification (for C.A./Doctor and other professionals)

Property Documents

Property Documents
Permission for construction (where applicable)
Registered Agreement for Sale (only for Maharashtra)/Allotment Letter/Stamped Agreement for Sale
Occupancy Certificate (in case of ready to move property)
Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, Property Tax Receipt
Approved Plan copy (Xerox Blueprint) & Registered Development Agreement of the builder, Conveyance Deed (For New Property)
Payment Receipts or bank A/C statement showing all the payments made to Builder/Seller

Must Read: Best Property Valuation Practices

Account Statement Documents

Account Statement
Last 6 months Bank Account Statements for all Bank Accounts held by the applicant/s
If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year

Balance Transfer Documents

Home Loan Balance Transfer Documents
List of original documents held at Bank
Loan a/c statement for the past one year
Sanction Letter
Interim Period Security

NRI General Documents

Category	Details
Identity Proof	Proof of Identity (PAN, Passport, Driver’s License, Voter ID card)
Employment Proof	Employer Identity Card Attested copy of valid Passport and visa
Address Proof	Address proof mentioning the current overseas address Proof of Residence/Address (e.g., Telephone Bill, Electricity Bill, Water Bill, Piped Gas Bill, Passport, Driving License, Aadhaar Card)
Specialized Documents for Specific Applicants	Copy of Continuous Discharge Certificate (CDC) for merchant navy employees PIO Card issued by the Government of India (for Persons of Indian Origin)
Attestation of Documents	Can be done by: – FOs/Representative Offices – Indian Embassy/Consulate – Overseas Notary Public – Officials of Branch/Sourcing outfits in India
Loan Application Form	Loan application form duly filled 3 passport-size photographs

NRI Income Proof Documents

Salaried Applicant/Co-applicant/Guarantor	Self-Employed Applicant/Co-applicant/Guarantor
Valid work permit	Business address proof
Employment contract (English translation duly attested by employer/consulate/foreign office/Embassy if in another language)	Proof of income in case of self-employed professionals/businessmen
Last three months’ salary certificate/slip	Last 2 years Audited/C.A. certified Balance Sheet and P&L accounts
Last six months’ Bank Statement showing salary credit	Last 2 years Individual Tax Return except for NRI/PIO located in Middle East countries
Latest salary certificate/slip in original and copy of identity card issued by the current employer	Last six months’ Bank Statement of overseas account in the name of individual as well as company/unit
Duly acknowledged copy of last year Individual Tax Return (except for NRIs/PIOs located in Middle East or Merchant Navy employees)

NRI Account Statement Documents

Account Statement
Bank account details for the previous 6 months overseas account showing salary and savings and Indian account if any.
If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year.

SBI Home Loan Tenure

Home loan tenure refers to the duration over which the borrower agrees to repay the loan amount along with interest. SBI offers flexible tenure options to accommodate varying financial situations and preferences. Here’s an overview:

Home Loan Type	Home Loan Tenure
Regular Home Loan/ NRI/ Flexipay/ CRE/ Maxgain/ Non Salaried/ Top Up/ YONO/ Privilege/ Shaurya	30 years
SBI Tribal Plus	15 years
SBI Realty Home Loan	10 years

Impact of Home Loan Tenure on EMIs

• EMI: Longer tenure results in lower monthly EMIs; shorter tenure leads to higher EMIs.
• Interest Payments: Extended tenure increases the total interest, while a reduced tenure decreases it.
• Budget: Longer tenure eases monthly budget strain, whereas shorter tenure requires higher income stability
• Cash Flow: Longer tenure frees up cash for other investments, while shorter tenure ties up more funds in EMIs.

How to Choose the Best SBI Home Loan Tenure?

• Assess income, expenses, and job security for consistent repayments.
• Opt for shorter tenures to reduce overall interest costs.
• Choose EMIs that fit comfortably within your budget.
• Calculate total interest to minimize long-term costs.
• Check for prepayment options without heavy penalties.
• Align tenure with long-term financial goals.
• Plan to settle the loan before retirement.
• Factor in potential salary growth for shorter tenures.
• Balance EMI affordability with loan tenure.

How To Apply For a Home Loan From SBI?

Getting your dream home is easier than ever with SBI. Apply today and take the first step towards securing a home loan with competitive rates and flexible terms!

Steps	Description
1. Meet a Loan Executive	Discuss your home loan requirements with an SBI loan executive.
2. Submit Application and Documents	Provide the filled application form and required documents (e.g., income proof, ID proof, address proof).
3. Document Review	The legal and technical teams will verify your application and documents.
4. Receive Sanction Letter	If approved, receive a sanction letter with loan terms.
5. Submit Additional Documents	Provide any additional documents requested by the bank.
6. Loan Approval	Receive final confirmation of loan approval.
7. Loan Disbursement	The approved amount will be disbursed within 15 days.

Read More: How to Check SBI Home Loan Statement?

SBI Home Loan: Minimum and Maximum Loan Amount

SBI offers home loans that cater to various financial situations. From first-time buyers needing a smaller loan to those looking to invest in premium real estate, knowing the minimum and maximum amounts available can simplify your search.

Type of Home Loan	Minimum Loan Amount	Maximum Loan Amount
SBI Realty Home Loan	–	₹15 Crore
SBI Home Loan For Non – Salaried	₹50,000	₹5 Crore
SBI Tribal Plus		Salaried: ₹20 Lakh Self Employed: ₹15 Lakh

Home Loan Down Payment

Loan Amount	% of Down Payment Required
Up to ₹30,00,000	10% of the property value
₹30,00,000 – ₹75,00,000	20% of the property value
₹75,00,000 and Above	25% of the property value

Check Out : Calculate Your Down Payment Now

SBI Home Loan Customer Care

Contact Method	Details
Email ID	customercare.homeloans@sbi.co.in
Toll-Free Number	1800 1234 / 1800 2100 / 1800 11 2211 / 1800 425 3800
Text Message	SMS “UNHAPPY” to 8008 20 20 20
Official Address	Customer Service Department State Bank of India State Bank Bhavan, 16th Floor Madam Cama Road, Mumbai 400 021
Website	https://homeloans.sbi/

SBI Home Loan Centers Near You

Finding the right support when applying for a home loan is crucial to making your homeownership dreams a reality. SBI has multiple home loan centers nationwide to provide you with convenient access to expert advice and personalized services. 

Check out the nearest SBI branch using our branch locator tool.

SBI Home Loan Approval and Disbursal

SBI is committed to processing home loan applications with utmost efficiency. Typically, the entire approval process is completed within 15 to 30 working days from the date of application submission. 

However, this timeline may vary based on several key factors:

• Completeness of documents
• Property type and location
• Applicant’s financial profile and credit score

SBI Home Loan Disbursement Process

SBI ensures a compliant and efficient home loan disbursement through a three-stage process: Application, Sanction, and Disbursement.

1. Application for Home Loan: Applicants are required to complete the home loan application form, providing necessary personal, income, and property documents and details.

2. Home Loan Sanction: Upon submission, SBI reviews the application and documents. Legal and technical experts assess the property’s compliance and condition.

3. Home Loan Disbursement: After receiving the sanction letter, the borrower is required to complete the down payment and submit final property documents for loan disbursement.

Types of Home Loan Disbursement

• Full Disbursement: Entire loan amount released if the property is fully constructed
• Partial Disbursement: Loan disbursed in stages based on construction progress for under-construction properties

How to Maximize the Chances of SBI Home Loan Approval?

• Maintain a high credit score
• Showcase strong financial stability
• Reduce existing debt obligations
• Provide complete and accurate documentation
• Pay sufficient down payment
• Choose property in approved locations
• Maintain consistent employment history
• Avoid multiple loan applications simultaneously
• Submit clear and legal property documents
• Ensure proper property valuation
• Keep income tax returns up to date
• Maintain low credit utilization ratio

SBI Home Loan Insurance – RiNn Raksha

SBI Life – RiNn Raksha is here to make life a little easier for families. It’s a plan that steps in when life takes an unexpected turn, ensuring that loan liabilities don’t become an additional burden.

Key Features of SBI RiNn Raksha

• Life insurance coverage
• Assistance to repay a variety of loans
• Coverage for co-borrowers
• Choice of Gold or Platinum plan options 
• Choice of cover term, premium paying term and frequency

Eligibility Criteria of SBI RiNn Raksha

Details	Minimum	Maximum
Size of the group in the first year	20 members	No limit
Entry Age	16 years	70 years
Maturity Age	N/A	75 years
Term	2 years	30 years
Sum Assured per member	Rs.10,000	No limit

Checkout: Premiums and Riders Offered by SBI RiNn Raksha

SBI Home Loan Tax Benefits

Home loans offer significant tax benefits under the Income Tax Act, 1961. These benefits apply to both the principal amount and interest paid, making home loans more cost-effective.

Section	Deduction Type	Maximum Deduction Amount	Conditions
80C	Principal Repayment of Home Loan	₹1.5 Lakh per annum	The house property must not be sold within five years of possession.
80C	Payment of Stamp Duty	₹1.5 Lakh per annum	These expenses can only be claimed in the year they are incurred.
24b	Interest Payment on Home Loan	₹2 Lakh per annum	The loan must be taken for purchasing or constructing a house. If constructing a house, the construction must be completed within five years from the end of the financial year in which the loan was taken. If the property is let out (rented), there is no cap on the interest deduction under Section 24(b). This allows property owners renting out their property to claim full interest payments as a deduction.

Must Read: Calculate Your Home Loan Tax Savings

1. Section 24B – Deduction on Home Loan Interest

What It Is: Allows you to claim a deduction on the interest paid on your home loan.

• Self-Occupied Property: Deduct up to ₹2 lakh per year on interest payments.
• Rented Property: No upper limit on the interest amount you can claim.

Example

Category	Amount
Loan Amount	Rs. 70,00,000
Interest Payable Per Year	Rs. 4 Lakhs
Tax Deduction	Rs. 2 Lakhs/ Year
Tax Bracket	30%
Tax Benefits per Year	Rs. 66,000

2. Section 80C – Deduction on Principal Repayment

What It Is: Allows deduction on the principal portion of your home loan repayments, up to ₹1.5 lakh per year.

• Reduces your taxable income by the principal amount repaid.
• Also includes stamp duty and registration charges (one-time claim in the year incurred).

Example

Category	Amount
Loan Amount	Rs. 75,00,000
Principal Payable Per Year	Rs. 3.5 Lakhs
Tax Deduction	Rs. 1.5 Lakhs per Year
Tax Bracket	30%
Tax Benefits per Year	50,000

Total Tax Benefits (Section 24B + Section 80C = Rs. 1.16 Lakhs/ Year

3. Joint Home Loans – Double the Benefits

What It Is: When two or more people take a joint home loan and are co-owners of the property.

• Section 24B: Each co-borrower can claim up to ₹2 lakh on interest.
• Section 80C: Each can claim up to ₹1.5 lakh on principal repayment.
• Total Tax Savings: Potentially ₹1.05 lakh per person per year (at 30% tax rate).

Who is Eligible to be a Co-Applicant?

• Father/ Mother
• Unmarried Daughter
• Siblings
• Husband/ Wife
  (Minors cannot be considered as co-applicants for a Home Loan)

Example

Category	Co Applicant 1	Co Applicant 2
Tax Deduction under 24B	Rs. 2 Lakhs/ Year	Rs. 2 Lakhs/ Year
Tax Deduction under 80C	Rs. 1.5 Lakhs/ Year	Rs. 1.5 Lakhs/ Year
Tax Deductions/ Year	Rs. 3.5 Lakhs/ Year	Rs. 3.5 Lakhs/ Year
Tax Bracket	30%	30%
Tax Benefits	Rs. 1.16 Lakhs/ Year	Rs. 1.16 Lakhs/ Year

When you opt for a co-applicant on your home loan, the savings can be substantial due to the ability to claim tax deductions separately. For example, with a co-applicant, the total tax savings can amount to ₹2.32 lakhs annually. Here’s how it works:

• EMI Paid per Year: ₹60,000 x 12 = ₹7,20,000
• Money Saved through Tax Deductions: ₹2,32,000
• Net Money Paid after Deductions: ₹7,20,000 – ₹2,32,000 = ₹4.88 lakhs

By utilising this tax benefit, you effectively lower your financial outflow, paying only ₹4.88 lakhs per year instead of the full ₹7.20 lakhs. 

Why Should You Choose SBI For Your Home Loan?

• Flexible repayment tenure for convenience.
• Transparent and efficient loan processing.
• No prepayment penalty for floating rate loans.
• Doorstep service for added convenience.
• Competitive and attractive interest rates.
• Hassle-free balance transfer process.

How Credit Dharma Simplifies The Home Loan Journey? 

Buying a home is a big step. Getting a home loan can be hard, but we make it easy. At Credit Dharma, we make this possible by offering lowest guaranteed interest rates that keep your monthly payments manageable, allowing you to enjoy more of what truly matters.

But that is not it. We offer:

• Guaranteed up to 100% funding
• Receive lifetime assistance and expert guidance long after your loan is approved.
• Enjoy a fully digital process with minimal paperwork 
• Get your loan approved within just 1-2 weeks.