State Bank of Travancore, or SBT, is a subsidiary of the State Bank Group and has its headquarters in Thiruvananthapuram, Kerala. Though originally based out of Kerala, SBT does have close to 1,157 branches spread across 18 states and 3 union territories within India. The bank has achieved a strong reputation because of its culture of hard work and dedication. It offers a range of financial services and granting home loans is one of them.
Everyone wishes to buy their own home but few have the savings necessary to do on their own. This is where home loans from banks like SBT come in the picture. SBT provides home loans at affordable interest rates that can be paid back in easy equated monthly instalments (EMIs). A home loan from the State Bank of Travancore can be availed for a variety of purposes such as the purchase of a home, renovation, repair, etc.
The loan can be paid back over a maximum period of 30 years. This gives the borrower a lot of flexibility in terms of availing repayment options. All that the applicant needs to do is submit the necessary documents and avail the required loan amount in order to get started.
The company offers an EMI calculator on their website. This calculator can be used by an applicant to find out their EMI amount. All they need to do is fill out the principal amount, the rate of interest and tenure in order to complete the application. They can tweak different combinations in order to come up with the option that is best suited to their requirement.
Following are some of key features of the SBT Home Loan
- SBT offers loans at interest rates starting at as low as 8.55%.
- The loan amount can be repaid over a maximum period of 30 years.
- A processing fee of 0.5% plus service tax will be charged on the loan amount sanctioned.
- The loan applicant should have a monthly income of at least Rs. 12,000 to qualify.
- The loan can be paid through EMIs that start at Rs. 819 per lakh.
- There are no pre-closure charges in case of a floating rate home loan from SBT.
Reputation: SBT has built a strong reputation in the home loan market. This brand image has been built on the foundation of their high service quality and dedication to providing the best possible options to their clients. The bank enjoys a loyal customer base in its home state and beyond.
Low-Interest Rates: SBT Home Loan offers home loans at competitive interest rates that are among the lowest in the market. These low rates can lead to significant savings over the entire term of the loan.
Customer Care: The customer care executives of the bank are available to the customers for counselling and assistance. The customer can clarify all their doubts regarding the loan procedure and other problems that they may face later on.
Flexible Loan Options: The home loan tenure can be extended up to 30 years. This gives the applicant a lot of financial flexibility in terms of how they wish to pay back the loan.
EMI Calculator: Investors can use an EMI calculator to figure out the key features of their loan. The applicant can calculate their EMI amount easily and plan their budget as well as loan application accordingly. They can also get clarity about their repayment strategy by using the free to use EMI calculator.
SBT offers low interest rates on their home loans. The rate of interest on the different types of loan and the various slabs based on the principal amounts has been tabulated below:
|Type of Loan||Interest Charged|
|Home loan amount up to Rs. 75 lakh||8.55%|
|Home loan amount above Rs. 75 lakh||8.80%|
|Maxgain loan up to Rs. 75 lakh||9.05%|
|Maxgain loan more than Rs. 75 lakh||9.30%|
|Flexipay loan up to Rs. 75 lakh||8.55%|
|Flexipay loan more than Rs. 75 lakh||8.80%|
|Housing loan for all||8.55%|
Factors affecting interest rates
Loan Amount: The loan amount or principal plays a big role in determining your rate of interest and obviously, the total interest paid. In general, higher loan amount mean lower rates of interest. However, this may not always hold true.
Listed Companies: SBT has a list of favoured companies whose employees get preferred rates. Employees from these companies enjoy a low rate of interest and better terms.
Salary: Your income plays a big part in determining your rate of interest. The bank has a keen interest in knowing your monthly salary. As a thumb rule, higher income individuals are generally offered lower rates of interest. For the bank, it works out because such borrowers also tend to take out larger loans which generate higher overall interest on the loan.
CIBIL Score: Your credit score is an important factor in determining the interest rate you are offered. Individuals with good credit ratings not only get preferred lower rates of interest but also enjoy a better maximum loan amount ceiling.
Income: For resident Indians, the minimum monthly income of the applicant should be Rs.12000 to qualify for the home loan. For non-resident Indians, the minimum monthly income figure is Rs. 15,000. Spouses of non-resident Indian who are presently residing in India can apply for a loan.
Age: The minimum age to avail and SBT home loan is 18 years. The applicant cannot be over 70 years of age at the end of the loan period.
Job Stability: The applicant should have at least 3 years of experience in their current profession in order to qualify for the home loan. Self-employed businessmen, salaried employees, and agriculturalists can also apply for this home loan offered by State Bank of Travancore. They will need to provide up to three years of income proof and tax returns to show their income stability. If the individual works for a reputed company, then too they would be eligible for lower rates.
Credit Score: The credit score from TransUnion CIBIL, Experian, Equifax and CRIF HighMark determines the financial behaviour of an individual. It highlights the repayment history of the individual. Banks use this information to ascertain whether the individual in question has the capacity to pay back their home loan at a later date. People with low credit score due to multiple missed payments, defaults, large unsecured debt, etc. may be denied outright.
Paisabazaar.com website offers an easy to use and free of charge EMI calculator that an applicant can use to calculate their monthly payout for repayment of the SBT Home Loan. This provides a fair idea about the EMI amount that an applicant would be required to pay in order to repay the loan. All that an applicant needs to do is visit the EMI calculator page, fill out the necessary details, and within a few seconds, the EMI amount will be available to the applicant. They can check their projected home loan EMI for various loan terms. For example, the EMI per Rs. 1 lakh of the loan would be an estimated Rs. 1,026 for a 15-year period and Rs. 913 for 20-year tenure.
This tool can benefit the applicant greatly as it helps save time while the applicant can ascertain their due EMI amount with a high degree of accuracy. Also, once the EMI amount is known to the individual, they can plan their budget and other aspects related to the loan accordingly.
The following are the key requirements specified by the State Bank of Travancore for various classes of home loan applicants:
Home Loan for Salaried Employees
- Application form that has been completely filled up.
- 2 passport-size photographs.
- ID proof acceptable to the bank.
- Residence proof acceptable to the bank
- Income proof in the form of salary slips for 6 months
- Bank statement for the previous 6 months.
Home Loan for Self-Employed Individuals and Professionals
- Duly filled out application form
- 2 passport-size photographs.
- Government of India issued ID proof accepted by the bank
- Certified ITR for the past 3 years.
- Proof of business continuity such as service tax registration, business address proof, certified profit and loss sheet, proof of business existence and the profile of the business.
Q. Why should someone take out a home loan from SBT?
A. The bank offers low-interest rates of 8.55% to 8.80% with EMI starting as low as Rs.819 per lakh. If someone is paying an EMI higher than this, then they can consider transferring their loan to SBT.
Q. Does the EMI rate remain the same or changes with time? What happens when there is a change in the interest rate?
A. Usually, the EMI remains the same unless the customer asks for a change and the bank approves it. In this condition, a nominal amount will be charged for the change in EMI.
If the interest is on a floating rate basis and there is a hike in the interest rate, then the bank may not change the EMI but extend the tenure of the loan instead. Doing this means that the applicant will pay the same EMI amount but for a longer period of time. However, if the new loan tenure is longer than the maximum loan tenure, then the bank will have no choice but to increase the EMI amount. For partially disbursed loans, the EMI will increase with each disbursement in case of a hike in the floating rate.
Q. Are there any additional charges on the home loan?
A. SBT charges a processing fee of 0.5% (plus service tax) of the total loan amount. There are no foreclosure charges.
Q. Will EMI change in case of prepayments?
A. SBT allows prepayments without any penalty attached to it. When you make a prepayment, the principal amount goes down and so does the EMI. Now, the borrower has two options. They can keep the EMI same as it was before and decrease the loan term. They may also lower the EMI and maintain the loan tenure. It is advisable to follow the former as the borrower will have to pay less total interest to the bank with this option.
Q. What is the maximum loan amount that applicants can avail?
A. The maximum home loan amount that an individual can avail from the State Bank of Travancore is Rs. 5 crores.
Q. How many co-applicants can apply for a loan?
A. The maximum number of applicants that can apply for a home loan is 3.
Q. How can someone increase their eligibility for an SBT Home Loan?
A. If the spouse or any close family member has a decent independent source of income, then they can be added as a co-applicant to improve home loan eligibility. The combination of the two incomes will boost your eligibility for the loan as it shows better repayment capability. It is even better if they are listed as co-owners of the property. This will let them both apply for tax rebates as well.
Q. Can someone transfer their loan from another bank to SBT?
A. Yes, SBT offers you the option to transfer your existing home loan with another bank to the State Bank of Travancore. The transfer will help save money if you end up with lower EMI amounts or you might choose shorter loan tenure while maintaining the same individual EMI amount in order to decrease the overall interest pay out on the loan.
Q. Is there a way to calculate the EMI?
A. Yes you can easily use the free EMI calculator facility to calculate your SBT home loan EMI. Fill out the necessary information and know your EMI amount. The EMI calculator on Paisabazaar.com is free to use unlimited times and provides accurate results within seconds such that all tedious calculations are avoided.