SBI Bridge Home Loan: Want to upgrade your home? See if this fits your requirement

SBI Bridge Home Loan: India's largest state lender State Bank of India (SBI) provides loans to people who want to upgrade their homes in the form of SBI Bridge Home Loan. This type of loan is a short term loan which is always handy in case you are planning to upgrade your homes to a bigger or better place.

These loans are useful in times when their is liquidity mismatch on account of time lag between sale of existing property and purchase of new property. SBI Bridge Home Loan will help to mitigate this shortfall of funds, and customers can avoid distressed sale of their existing homes.

While, many banks offer such short term loans, it is always advisable to compare rates and if possible consult with people who are expert in these matters.

The advantage of these loans is that the interest is charged on Daily Reducing Balance. The repayment period of this loan is up to 2 years.

What SBI Bridge loans offer to customers:

-- As per the SBI website, bank charges a processing fee of 0.35 per cent of the loan amount along with applicable service tax, minimum of Rs 5,000, out of pocket expenses towards TIR, Valuation Report etc will be borne by the borrower

-- Pre-sanction - Advocate's fee for property search and the title investigation report and valuer's fee for valuation report

-- Post-sanction - Stamp duty payable for Loan agreement & mortgage. Property insurance premium. CERSAI Registration Fee of Rs 50 + GST up to Rs 5 Lakh limit; and Rs 100 + GST for limits above Rs 5 Lakh.

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SBI Bridge Home Loan interest rate - For first year it is EBR + 255 bps which effectively is 9.60 per cent. For second year its is EBR + 355 bps which is 10.60 percent.