INTEREST RATE | 7.90% to 8.30% |
LOAN TENURE | 30 Years |
PROCESSING FEE | Nil |
GUARANTOR REQUIRED | Yes |
PRE CLOSURE CHARGES | Nil |
Calculate State Bank Of India Home Loan EMI Calculate EMI Now
State Bank Of India is a public sector bank in india with total assets 43195 crore. It has headquarter in Mumbai. State Bank Of India was founded on 01-07-1955. It has 16333 branches and total assets 4319554560 ATMs across India. It provides all the financial services to its customers like saving deposit, fixed deposit, recurring deposit, home loans, personal loan, car loan, education loan, gold loan, PPF account, lockers, netbanking, mobile banking, RTGS, NEFT, IMPS, E-Wallet, Atal Pension Yojana, Pradhan Mantri Jandhan Yojana, Pradhan Mantri Suraksha Bima Yojana, Pradhan Mantri Jeevan Jyoti Bima Yojana and many more.
Find details about State Bank Of India which includes State Bank Of India Official Website, State Bank Of India ATMs accross the India, State Bank Of India Branches accross the India, State Bank Of India Contact Numbers, State Bank Of India official EmailID, State Bank Of India Headquarter and State Bank Of India Headquarter Address. Find State Bank Of India Home loan purpose, Eligibility, Margin, Repayment of Home Loan ,Security, Document Required for Home Loan from below.
Particulars | Description |
---|---|
Type | Public Sector Bank |
Industry | Banking & Financial Services |
Founded in | 2nd June 1956 |
Headquarter | Mumbai, Maharashtra, India |
Owner | Government of India |
Website | https://www.sbi.co.in/ |
Products | Retail Banking, Corporate Banking, Finance, Credit Cards, Insurance, Asset Management, Wealth Management & Loans |
State Bank of India (SBI) Home Loans is the largest lender in India. It offers a variety of Home Loan Schemes to the customers to fulfil their dream of owning a home. It has already provided home loan to more than 30 Lakh families.
SBI provides home loan for different purposes such as for purchase, construction and extension of dwelling unit, for purchase of plot, for upgrading home, etc. SBI offers customised Home Loan solutions, best-in-class services and simplified loan process.
Particulars | Details |
---|---|
Interest Rate |
|
Processing Fee |
|
Loan Amount | Customised |
Loan Tenure | Up to 30 Years or upto the age of 70 years , whichever is earlier |
Margin | 10% to 25% of the loan amount |
Pre-closure Charges | Nil |
Part-Payment Charges | Nil |
Security | Equitable | Registered Mortgage of the Property in question |
Loan Amount | Margin | LTV Ratio |
---|---|---|
Up to Rs. 20 lakhs | 10% | 90% |
Above Rs. 20 lakhs and upto Rs. 75 lakhs | 20% | 80% |
Above Rs. 75 lakhs | 30% | 70% |
Basis | Salaried Customers | Non Salaried Customers |
---|---|---|
Age | Minimum 18 years & Maximum 70 Years | Minimum 18 years & Maximum 70 Years |
Income | Annual income must be atleast Rs.1.2 lakhs | Annual income must be atleast Rs 2 lakhs |
Job/ Business Experience | 1 Year | 2 Years |
Age of Co-applicant | Minimum 18 years | Minimum 18 years |
Basis | Salaried Customers | Non Salaried Customers |
---|---|---|
Application | Application form with 3 photographs | Application form with 3 photographs |
Processing Fee | Processing fee cheque | Processing fee cheque |
Identity Proof | Passport/ PAN card/ Driving License/ Voter ID Card/ Any other valid ID proof | Passport/ PAN card/ Driving License/ Voter ID Card/ Any other valid ID proof |
Address Proof | Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card | Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card |
Financial Documents |
|
|
Category | Fee & Charges |
---|---|
Processing Fee |
|
Pre-Sanction Fee |
|
Post-Sanction Fee |
|
Switch Over Fee | Nil |
Balance Transfer Fee | Nil up to 31.12.2018 |
Bounced cheque/ECS or SI dishonours charges | Rs. 250 on each such transaction |
Tenor | MCLR (In %) |
---|---|
Overnight | 7.65 |
1 Month | 7.65 |
3 Month | 7.70 |
6 Month | 7.85 |
1 Year | 7.90 |
2 Years | 8.10 |
3 Years | 8.20 |
Loan offered to the borrower is completely customised as per the requirement and the eligibility criteria of the customer. The value of loan depends upon applicant's income, repaying capacity, age, assets and liabilities, credit score, tenure of the loan, cost of the proposed property, previous credit history.
Loan of even upto Rs. 50 crores is also offered under select schemes but as such there is no maximum cap on the loan amount, finally it is at the descrition of the bank.
Margin for SBI Home loan ranges from 10% to 25% of the loan amount. It depends upon the scheme and loan amount availed by the borrower.
The repayment of SBI Home Loan can be done in Maximum 30 years or upto 70 years of the age of borrower, whichever is earlier.
Being it a secured loan, the borrower is required to do Equitable | Registered Mortgage of the Property in question in favour of the bank.
Sr No | Scheme | Brief Description |
---|---|---|
1 | SBI Regular Home Loan | Regular and most demanding scheme |
2 | SBI Maxgain Home Loan | Home Loan is taken as Overdraft |
3 | SBI Home Top-Up Loan | Borrow amount over and above home loan amount |
4 | SBI Balance Transfer of Home Loan | Transfer home loan from other institution to SBI |
5 | SBI NRI Home Loan | NRIs and PIOs can get home loan |
6 | SBI Flexipay Home Loan | Exclusively designed for salaried to get higher loan |
7 | SBI Privilege Home Loan | Exclusively designed for government employees |
8 | SBI Shaurya Home Loan | Dedicated to Indian Army and Defence Personnel |
9 | SBI Pre-Approved Home Loan (PAL) | Sanction of loan limit before finalizing property |
10 | SBI Realty Home Loan | Exclusively to purchase a plot for construction |
11 | SBI Bridge Home Loan | Upgrade home |
12 | SBI Hamara Ghar | Fixed interest rate for first 2 years |
13 | SBI Tribal Plus | Especially for customers in Hilly or Tribal areas |
14 | SBI Earnest Money Deposit (EMD) | Booking of plot or house being sold by Govt Housing agencies |
15 | SBI Reverse Mortgage Loan | Loan against mortgage of residential property |
16 | SBI CRE (Commercial Real Estate) Home Loan | Loan to customers who own at least 2 houses |
17 | Pradhan Mantri Awas Yojana (PMAY) | Subsidised home loan for eligible urban beneficiaries |
(1) SBI Regular Home Loan: This is a regular scheme. This is most demanding scheme too. Maximum number of customers opt for home loan under this scheme only.
Important Features
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 7.90% | 7.95% |
Above 30 Lakhs to 75 Lakhs | 8.15% | 8.20% |
Above 75 Lakhs | 8.25% | 8.30% |
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 8.05% | 8.10% |
Above 30 Lakhs to 75 Lakhs | 8.30% | 8.35% |
Above 75 Lakhs | 8.40% | 8.45% |
(2)SBI Maxgain Home Loan: Whenever Home Loan is taken as Overdraft, it is called Maxgain.
Important Features
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Above 20 Lakhs to 30 Lakhs | 8.15% | 8.20% |
Above 30 Lakhs to 75 Lakhs | 8.40% | 8.45% |
Above 75 Lakhs to 3 crore | 8.50% | 8.55% |
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Above 20 Lakhs to 30 Lakhs | 8.30% | 8.35% |
Above 30 Lakhs to 75 Lakhs | 8.55% | 8.60% |
Above 75 Lakhs to 3 crore | 8.65% | 8.70% |
(3) SBI Home Top-Up Loan: SBI offers customers to borrow certain amount over and above their home loan amount.
Important Features
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 20 Lakhs | 8.35% | 8.35% |
Above 20 Lakhs to 1 Crore | 8.55% | 8.55% |
Above 1 Crore to 2 Crores | 8.75% | 8.75% |
Above 2 Crores to 5 Crores | 9.20% | 9.20% |
Above 5 Crores | 10.40% | 10.40% |
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 20 Lakhs | 8.50% | 8.50% |
Above 20 Lakhs to 1 Crore | 8.70% | 8.70% |
Above 1 Crore to 2 Crores | 8.90% | 8.90% |
Above 2 Crores to 5 Crores | 9.35% | 9.35% |
Above 5 Crores | 10.55% | 10.55% |
(4) SBI Balance Transfer of Home Loan: This scheme enables a customer to transfer home loan from any other institution to SBI.
Important Features
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 7.90% | 7.95% |
Above 30 Lakhs to 75 Lakhs | 8.15% | 8.20% |
Above 75 Lakhs | 8.25% | 8.30% |
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 8.05% | 8.10% |
Above 30 Lakhs to 75 Lakhs | 8.30% | 8.35% |
Above 75 Lakhs | 8.40% | 8.45% |
(5) SBI NRI Home Loan: This scheme enables NRIs (Non Resident Indians) and PIO (People of Indian Origin) to get home loan.
Important Features
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 7.90% | 7.95% |
Above 30 Lakhs to 75 Lakhs | 8.15% | 8.20% |
Above 75 Lakhs | 8.25% | 8.30% |
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 8.05% | 8.10% |
Above 30 Lakhs to 75 Lakhs | 8.30% | 8.35% |
Above 75 Lakhs | 8.40% | 8.45% |
(6) SBI Flexipay Home Loan: This scheme offers a higher loan amount exclusively for the salaried borrowers
Important Features
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 7.90% | 7.95% |
Above 30 Lakhs to 75 Lakhs | 8.15% | 8.20% |
Above 75 Lakhs | 8.25% | 8.30% |
(7) SBI Privilege Home Loan: This scheme is exclusively designed for government employees.
Important Features
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 8.70%-8.80% | 8.75%-8.85% |
Above 30 Lakhs to 75 Lakhs | 8.90%-9.00% | 8.95%-9.05% |
Above 75 Lakhs | 9.00%-9.10% | 9.05%-9.15% |
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 8.85%-8.95% | 8.90%-9.00% |
Above 30 Lakhs to 75 Lakhs | 9.05%-9.15% | 9.10%-9.20% |
Above 75 Lakhs | 9.15%-9.25% | 9.20%-9.35% |
(8) SBI Shaurya Home Loan: This scheme is exclusively dedicated to the Army and Defence Personnel of the nation.
Important Features
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 8.70%-8.80% | 8.75%-8.85% |
Above 30 Lakhs to 75 Lakhs | 8.90%-9.00% | 8.95%-9.05% |
Above 75 Lakhs | 9.00%-9.10% | 9.05%-9.15% |
(9) SBI Pre-Approved Home Loan (PAL): This scheme provides sanction of Home Loan limits to the customers before finalization of the property.
Important Features
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 8.70%-8.80% | 8.75%-8.85% |
Above 30 Lakhs to 75 Lakhs | 8.90%-9.00% | 8.95%-9.05% |
Above 75 Lakhs | 9.00%-9.10% | 9.05%-9.15% |
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 8.85%-8.95% | 8.90%-9.00% |
Above 30 Lakhs to 75 Lakhs | 9.05%-9.15% | 9.10%-9.20% |
Above 75 Lakhs | 9.15%-9.25% | 9.20%-9.35% |
(10) SBI Realty Home Loan: This scheme provides customer to purchase a plot for construction of a dwelling unit.
Important Features
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 30 Lakhs | 8.60% | 8.65% |
Above 30 Lakhs to 75 Lakhs | 8.70% | 8.75% |
Above 75 Lakhs | 8.80% | 8.85% |
(11) SBI Bridge Home Loan: This scheme provides customer to upgrade their homes.
Important Features
Loan Tenure | Interest Rate p.a. |
---|---|
First Year | 10.35% |
Second Year | 11.35% |
(12) SBI Hamara Ghar: This scheme provides customer fixed interest rate for initial 2 years.
Important Features
Loan Tenure | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
First 2 years | 8.45% | 8.50% |
Rest of the tenure | Linked to prevailing 1 year MCLR rate | Linked to prevailing 1 year MCLR rate |
Loan Tenure | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
First 2 years | 8.60% | 8.65% |
Rest of the tenure | Linked to prevailing 1 year MCLR rate | Linked to prevailing 1 year MCLR rate |
(13) SBI Tribal Plus: This scheme is designed especially for customers in Hilly/ Tribal areas.
Important Features
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 10 Lakhs | 8.80%-8.90% | 8.85%-8.95% |
Loan Amount | Interest Rate (Women) p.a. | Interest Rate (Others) p.a. |
---|---|---|
Upto 10 Lakhs | 8.95%-9.05% | 9.00%-9.10% |
(14) SBI Earnest Money Deposit (EMD): This scheme is for the customers who want a loan for booking of residential plots/ built-up houses being sold by Government Housing agencies like Urban Development Authorities like PUDA, HUDA and Housing.
Important Features
(15) SBI Reverse Mortgage Loan:This loan is provided to customer against mortgage of his / their residential house property. This scheme is especially designed for aged people such as senior citizens.
Important Features
Category of the Borrower | Interest Rate p.a. |
---|---|
SBI Pensioners | 8.90% |
Others | 9.90% |
(16) SBI CRE (Commercial Real Estate) Home Loan:This loan is provided to customers who own at least 2 houses and seek loan for owning their next home.
Important Features
(17) Pradhan Mantri Awas Yojana (PMAY): Housing for All (Urban)
PMAY is an affordable housing scheme for providing houses to all the eligible beneficiaries by 2022. "Housing for All" Mission for urban area will be implemented during 2015-2022. Credit linked subsidy (CLSS) will be provided on home loans taken by eligible urban beneficiaries for acquisition or construction of house.
It is provided in 2 categories:
Credit Linked Subsidy Scheme (CLSS) EWS / LIG
Credit linked interest subsidy at 6.50% will be provided to the eligible borrowers in EWS/LIG category for 20 years or actual tenure of the home loan, whichever is lower, as per the guidelines of Government of India.
Important Features:
Who is a person belonging to EWS (Economically Weaker Sections) category?
EWS beneficiaries have an annual income upto Rs. 3.00 lakhs.
Who is a person belonging to LIG(Low Income Group) category?
LIG beneficiaries have an annual income between Rs. 3.00 lakhs to Rs. 6.00 lakhs.
Credit Linked Subsidy Scheme (CLSS) - MIG
Credit linked interest subsidy at 4% or 3% will be provided to the eligible borrowers in MIG-I/ MIG-II category up to 31.03.2019, as per the guidelines of Government of India. CLSS-MIG had been implemented initially for a period of one year i.e. from 01.01.2017 up to 31.12.2017, but has now been extended up to 31.03.2019.
Important Features:
Who is a person belonging to MIG-I category?
MIG-I beneficiaries have an annual income above Rs. 6.00 lakhs to Rs. 12.00 lakhs.
Who is a person belonging to MIG-II category?
MIG-II beneficiaries have an annual income above Rs. 12.00 lakhs to Rs. 18.00 lakhs.
First of all, you apply for home loan from SBI and along with your loan application, you need to fill the Pradhan Mantri Awas Yojana (PMAY) Form and submit it with your loan application form with the bank. Bank will take care of its processing. Bank will check your eligibility and if you are eligible in the category you have applied for like EWS/ LIG/ MIG-I/ MIG-II, then accordingly the interest subsidy would be credited in your bank account.
There are two types of tax benefits associated with home loan for Resident Indians:
Repayment of the Principal Amount: One can get a Tax rebate under section 80C of the Income Tax Act on whole amount repaid by him in a financial year, maximum upto Rs. 1,50,000/- each financial year (Increased from 1 Lakh to Rs. 1.5 Lakh in Budget 2014).
Repayment of the Interest on Home Loan: Tax Benefit on Home Loan for payment of Interest is allowed as a deduction under Section 24(1) of the Income Tax Act. One is eligible for a Tax Rebate of maximum of Rs. 2 lakh per financial year for home loan interest paid by him/her during that financial year.
After April 1, 2016, all bank loans (including home loans) are linked to the bank's MCLR with or without a mark-up or spread (bank margin). Earlier, they were linked to the bank's base rate. All banks are required to disclose their MCLR each month.
Banks generally hike MCLR, whenever there is a hike in Repo Rate by the RBI. Banks may increase MCLR due to surging bond yields and higher provisioning requirements, even when the RBI has not hiked Repo Rate.
Home Loan Interest Rate can be equal to the MCLR or have a 'margin' or 'mark-up' or 'spread' but can never be lower than MCLR.
"Home Loan Interest Rate is linked to the bank's MCLR. If MCLR goes up, the home loan rates will also go up. Home Loan Interest Rate will not be impacted by hike in MCLR only if banks reduce the mark-up (margin) in the home loan. If MCLR goes down, the home loan rates will also go down."
For MCLR-linked home loans, the rate is reset after 6 or 12 months according to the agreement between the borrower and the bank. The interest rate applicable on the reset date will become the new rate on which the future EMI's will be calculated.
Home Loan Interest Rate of old home loan borrowers (who had taken home loans before April 1, 2016) are linked to the base rates of the banks. Hence the EMI which they are paying is also linked to base rate. Banks have always remained very sluggish for passing on the benefits of RBI rate cuts to the borrowers.
Now after April 1, 2016, Home Loan Interest Rate is linked to MCLR (Marginal Cost of funds based Lending Rate) for home loan borrowers in order to resolve the problems of the Base Rate regime.
It will be beneficial for them to switch to MCLR linked rate if the difference between what they are paying (under base rate) and what the bank is offering (under MCLR) is significant. So they must switch to MCLR linked rates, if outstanding loan is high and the remaining tenure is also long.
In that situation, Base Rate Borrowers have following two options:
(1) Switch to MCLR linked home loan with the same bank: It is beneficial, in case the bank is charging a nominal switching fee such as 0.50% or less on outstanding amount.
(2) Transfer the loan to another bank on MCLR: It is feasible, if new bank has waived off processing fee (which they generally do in order to attract the customer and increase their business) or is charging very less processing fee and legal and transfer costs.
The borrower must compare both the above-mentioned options and opt for the one which is more beneficial to them in terms of money saved. It will result not only in reduction of future EMIs but also a huge amount of interest will be saved during remaining tenure.
One may as well continue the loan on base-rate especially if the maturity is near and need not go through the process of conversion.
Further, the Reserve Bank (RBI) is going to link the base rate for loans given by banks to the MCLR from April 1, 2018. Once it happens, the base rate will automatically increase or decrease along with the MCLR without any specific action required for adjustment. This will be very beneficial for the home loan borrowers whose rates (EMIs) are still linked to the base rate.
You can repay SBI home loan in any of the following methods:
(1) Electronic Clearing Service (ECS): Electronic Clearing System is preferred for faster payments and collections. If you have an account with other bank than SBI then you can use ECS for loan repayment. You will have to fill up a form and submit the same with your bank for debiting EMI every month from your account. In this case, your EMI will be automatically debited every month from your bank account and credited to SBI towards loan repayment instalment.
(2) Standing Instruction (SI): If you maintain your account with SBI, then you can use this method. Under this method, you will have to issue a Standing Instruction to SBI to debit your EMI amount on a due date every month from your SBI account and credit to SBI loan account towards loan repayment instalment. You save a lot of time and energy by giving standing instructions to the bank to carry out the transaction on your behalf each time.
(3) Post-Dated Cheques (PDCs): In this method, you need to submit post-dated EMI cheques to SBI for a certain period of time, which are deposited by the SBI on the due date. This alternative is cumbersome and time-consuming and involve a manual procedure of visiting the SBI in a timely manner.
Points to Note Regarding EMI Payment Methods
One can pre-pay State Bank Of India Home Loan without any prepayment charges as it allows prepayment at nil charges in case of floating rate home loans. If the borrower makes a prepayment, the outstanding balance of principal amount of his home loan reduces. Then in that case he has following 2 options:
Out of above 2 options, first option is more beneficial for the borrower as he pay less interest to the bank as the pay off home loan will be faster.
EMI or Equated Monthly Instalment is a fixed amount paid by you to the bank on a specific date every month. The EMI's are fixed when you borrow money from the bank as a loan. EMI's are used to pay both interest and principal amount of a loan in a way that over a specific number of years, the loan amount is repaid to the bank alongwith interest.
Pre-EMI is an option in which the borrower has to pay only interest on loan amount during the progress on the construction of the project. The actual EMI payment will be started only after his/ her possessing the house.
Interest rates offered vary for women borrowers and others. Women borrowers are offered home loan at lower interest rate in SBI.
The eligibility criteria will be your repayment capacity which is determined by SBI based on various factors like age, income, credit history, value of the property, relationship with bank, etc.
Yes. Joint applicants can be made for SBI Home Loans.
SBI charges a low processing fee for its home loans. 0.35% of Loan Amount, subject to a minimum of Rs 2000/- plus applicable taxes and Maximum of Rs 10,000/- plus applicable taxes, is charged by SBI home loan as processing fee. However, it is waived till 31.03.2018.
You can own as many properties as you want.
Down payment is the amount that is paid by the borrower on an up-front basis. Banks usually pay around 75% to 85% of the cost of the property, hence the rest amount the borrower needs to pay as down payment.
Home loans average tenure ranges generally between 3 and 30 years.
Yes. You can pre-pay your SBI home loan without a pre-payment penalty fee.
The property purchased out of the loan is taken by SBI as the security. However, if SBI feels then it can ask for additional securities too.
The interest on SBI home loans is calculated on daily reducing balance for the benefit of its customers.
NRI or Non Resident Indian is a citizen of India or a foreign national of Indian origin living outside India for the purpose of employment, business or any other vocation, which would indicate his intention to stay outside India for an indefinite period of time. An Indian would also be termed as an NRI if his stay in India is less than 182 days.
Generally, payments are made through NRI Account like NRO, NRE, NRNR and FCNR accounts. NRI home loan can be paid by way of direct remittances from abroad through normal banking channels or from other financial accounts as may be permitted by RBI.
You can either be a salaried employee or self-employed for obtaining this loan. However, the only condition is that you should be earning a regular income and should be able to furnish proofs of the same.
As per Section 80C of the Income Tax Act, in case of the principal amount, you can claim a deduction of upto Rs 1.5 lakhs while in case of interest, it is upto Rs. 2 lakhs.
It dependes on the financial status of the borrower. If he wants lower EMIs then Long-term loans, if not, then he can go with short-term loans with higher EMIs with the benefit of lesser interest.