Shelter is one of the prime basic needs and everyone dreams to have his own shelter. Well, buying a house is just not an easy task. Rather, it is the most challenging and complicated task. And the most important is finance arrangement.

The cost of homes is as high as mountains. It has become very difficult for the common man to have his own dream home. Many a times he doesn’t have money to make down-payment. It is truly difficult to fulfil the dream from little savings. To overcome such problems, the financial institutes offer housing loans to the needy. The person can avail such facility and can make the dreams come true.

The State Bank of India offers most attractive housing loan schemes; that too, at the most affordable rate. The rate of interest charged and the processing fees of SBI are very nominal and affordable to common man. With reduced balance and floating SBI Home Loan Interest Rates the total repayment of loan sum up very little that anyone can afford to repay.

Floating Interest Rate

The State Bank Of India charge interest at a floating rate on home loan. Also it is linked to the Base Rate making it more affordable for the loan borrower while repaying. As per the base rate system intruded in 2010 by RBI, the SBI offer home loan at the lowest interest rate. If the RBI increases the base rate, the applicable interest rate for home loan goes up. At the same time, with reduced base rate, interest rate comes down. The benefits of lowered interest rate are passed to the borrowers by SBI.The base rate benchmarked home loans are more transparent and are more beneficial to the loan borrowers.

Factors Determining The Interest Rates

Lending loans depends on different factors. Cost of funds, the stability of the income of the borrower, the value of the asset, and many more factors decides the interest rates.

·         Cost of funds and the net interest margin are important factors for deciding the interest rates. The State Bank Of India housing loan interest rates are decided after covering the operating cost and the profit to be earned.

·         The tangible security offered also decides the interest rates. As home loan is provided against the tangible asset, mostly the same property; the interest rate charged is low as compared to unsecured loans.

·         The interest rate for home loan is different for salaried, self-employed and professionals. The loan applicants with stable income streams can avail the home loans at lower interest rates.

Housing loan from SBI is the best option available for those who wants to have their own dream home. SBI Home Loan Interest Rates are most affordable and low-priced home loans designed for Indians and for NRIs. For detailed information, you can visit the official website URL: http://sbihomeloans.co.in. Here you will get detailed information about the procedure for applying home loan, documents required, EMI calculator and much more. Surely, you will find it is most affordable, hassle-free and time saving.