Planning to buy a home? Check EMI for a Rs 50 lakh SBI home loan

New Delhi (The Uttam Hindu): This could be a great time for those dreaming of buying their own home. The general public is now beginning to benefit directly from the 1.25 percent cut in the repo rate this year by the Reserve Bank of India (RBI). The reduction in repo rate has made loans cheaper for banks, due to which the country's largest public sector bank, State Bank of India (SBI), has also drastically reduced its home loan interest rates. SBI is now offering home loans to customers at an interest rate starting at just 7.25 percent, which is expected to reduce the EMI burden across all categories like home loans, car loans and personal loans.

If you're planning to take out a home loan of ₹50 lakh from SBI for a 30-year term, the bank has set certain income criteria. According to the bank's calculations, an applicant's monthly salary must be at least ₹69,000 to qualify for this loan at an interest rate of 7.25 percent. However, this requirement is only met if the applicant doesn't have any other active loans. If you meet these criteria, you'll have to pay an EMI of approximately ₹34,500 per month on a ₹50 lakh loan. This is a significant relief for middle-class families who spend a significant portion of their income on rent.

A good salary isn't enough to benefit from affordable interest rates; your credit score also plays a crucial role. Banking experts say that a strong credit score is essential for obtaining a home loan from any bank. A high credit score not only speeds up loan approval, but also allows you to request additional discounts or better offers on interest rates. Conversely, a poor score can result in application rejection. Therefore, it's wise to compare offers from different banks and keep your old loan accounts clear before applying for a home loan.