Banks easily give home loans to employed people on the basis of their job stability, income and credit score.
Self-employed or people with low income may face some difficulty in taking loan from the bank. Such people can go to non-banking finance companies (NBFCs) or housing finance companies. Here the rules for getting loans are a bit flexible and the processing is also fast, but their interest rates are higher than banks.
SBI home loan interest rates
SBI, the country's largest government bank, offers different interest rates on home loans:
- Interest rate on normal home loan: 7.50% to 8.70%
- Interest rate on Home Loan Maxgain (Overdraft): 7.75% to 8.95%
- Interest rate on SBI Top Up Loan: 8% to 10.75%
- Interest rate on YONO Insta Home Top Up Loan: 8.35%
How much will be the EMI on home loan of Rs 22 lakh?
If you take a home loan of Rs 22 lakh from SBI at an interest rate of 7.50%, then the details of your EMI and total interest as per the loan tenure are given below-
What should be your minimum salary for loan?
Banks often offer loans with EMIs equal to 50% of the customer's monthly salary (assuming there are no other loans). Therefore, to take a loan of Rs 22 lakh, your estimated minimum monthly salary should be:
- Loan for 30 years: Minimum salary should be Rs 30,766 (double the EMI Rs 15,383)
- Loan for 25 years: Minimum salary should be Rs 32,516
- Loan for 20 years: Minimum salary should be Rs 35,446
