SBI has started SBI Privilege Home Loan exclusively for government employees. Those who are employed at the state and central government are entitled to the same. Other individuals who are getting the pension are also eligible for these home loans. The loan amount will be decided according to the customers income and repaying capacity, age, asset liabilities, cost of the proposed house, etc.
The age eligibility to get these home loans is between 18 years to 75 years and the tenure will go up to 30 years. SBI is providing many benefits to Indian government employees that include lower interest and it has no processing fee, and no hidden charges and no penalty for pre payment and the bank is also offering concession on interest to women borrowers. It has also introduced a new EMI system with less EMI rate to reduce the burden on employees during post retirement stage.
Here are 7 major benefits of SBI Privilege Home Loan:
Reduced burden of servicing EMIs under the new schemes as lower EMIs would need to be serviced during the post-retirement term.
This is because the EMIs to be serviced during the post-retirement term are capped at 50% of the current Net Monthly Income.
There is a extended repayment facility upto the age of 75 years as against 70 years under normal Home Loan scheme. The maximum loan term, however, shall remain capped at 30 years.
No processing fee
There is no processing fee applicable. However, expenditure such as Advocate's Fee for Legal Opinion, Valuers Fee for Valuation Report, CERSAI and CIBIL charges will continue to remain applicable.
Lower interest rate
Benefit of lower interest rate as a concession of 5 bps over the Home Loan Card Interest Rate is available wherever check-off facility is extended by the Government under tie-up arrangement with the Bank.
There is also option for customers of other Banks / FIs to switchover their Home Loan outstanding balance to State Bank of India.
Central Government Employees
As per reports, there are about 47 lakh Central government employees, including 14 lakh defence personnel, who will benefit from the salary hike and can make best use of SBI's super loan offer.
Customers can save a huge amount as there is no processing fee, reduced EMI, increased extended payment option by availing this loan. The saved amount can be used to make other investments or towards retirement fund.