What is drawing power in SBI home loan?

In SBI products like MaxGain, drawing power refers to the maximum amount of your approved home loan that you are permitted to disburse at a given time from the sanctioned loan limit. This is what is drawing power in SBI home loan. The drawing power changes depending on factors like how much has been disbursed, how much principal has been repaid, and the underlying property value.

What is Drawing Power in SBI Loan Account?

For instance, if you have a home loan sanctioned for Rs 50 lakh, your drawing power might initially be only a portion of that, depending on the construction stage or property value.

1. Here’s how it generally works: when SBI sanctions a home loan (especially for an under-construction property), the full amount may not be disbursed immediately. The bank will release tranches based on construction stages or approvals.

2. The drawing power, therefore, signals how much of the sanctioned amount you are eligible to draw at that stage. 

3. As you repay portions of the loan (i.e., reduce outstanding principal) or as the property value and approvals improve, your drawing power may increase (up to the sanctioned limit) or contract (if conditions worsen).

For under‐construction properties, the bank may release funds in phases, so full drawing power may not be immediately available. I hope you found this information useful.

Get Fast Approval and Quick Disbursement of Home Loan Via NoBroker Home Loan Service.  

I mentioned earlier what is drawing power in SBI home loan. Drawing Power or DP refers to the maximum amount you’re allowed to withdraw or draw down from your sanctioned loan limit at any given time. It’s not a fixed amount. It fluctuates based on disbursements, repayments, and property valuation.

• For an under-construction property, SBI disburses funds in tranches. 

• Each time you complete a construction stage and the bank disburses a portion, your DP rises accordingly.

• Similarly, as you repay your loan principal, the DP decreases because your outstanding balance falls. 

• In simple terms: Sanctioned limit = total loan approved, and DP = how much you can currently withdraw from that limit

SBI typically lends up to 75% of the property's value, and this “loan‑to‑value” ratio sets your maximum possible DP.

General calculation formula used for reference:

Drawing Power = (Net take‑home salary + Net rental income + Other incomes) × FOIR × Property value factor (like 75%).

Almost a year ago, when I visited my SBI bank branch, ‌I came to know the term drawing power. I asked my bank manager, what is drawing power in SBI home loan? He said Drawing Power, which you can call DP, refers to the maximum loan amount a borrower can withdraw based on the sanctioned loan limit and the stage of construction or utilization of funds. He has shared the following points with me:

1. It is a dynamic limit that changes depending on loan disbursement, repayment, and property progress.

2. SBI sanctions a loan based on property value, borrower eligibility, and repayment capacity. However, SBI does not always disburse the full amount immediately. Instead, disbursement happens in stages, especially for under-construction properties.

3. For an under-construction property, SBI releases funds in tranches. The DP increases as construction progresses and the bank disburses more money.

4. As the borrower repays the loan, the DP reduces over time based on the principal outstanding. If the borrower prepays a portion of the loan, the DP reduces accordingly.

5. In case of loans against property, DP is adjusted based on the current market value and outstanding loan balance.

I hope you found this helpful.

Avail Doorstep Assistance for Your Home Loan with NoBroker Home Loan Service.

Read more

What is overdraft facility in SBI home loan? 

What are the Factors Impacting SBI Home Loan Drawing Power?

• Property Valuation: 

• Repayment ability:

• Credit Score:

• Risk Factors:

Calculation of Drawing Powеr

When you take a home loan, there are so many terms and phrases you hear for the first time. And it makes you a bit more confused if you don’t understand them. One of the terms I didn’t understand while taking a home loan was drawing power. But then I consulted one of my friends and he guided me about it in detail. So let me tell you what is drawing power in SBI home loan?

What is the meaning of drawing power in SBI home loan?

The amount of the loan that must be repaid by you in line with the initially agreed EMI schedule at the time of loan sanction is referred to as the "drawing power." The real amount of the loan that is still owed to the bank at any one time is the outstanding amount.

If you are not consistent with your payments, your outstanding loan balance may be higher than the DP. Conversely, it may be lower than the DP if you are making early or extra loan EMI instalments.

What are the drawing power in SBI home loan meaning and its example?

Your (borrower's) maximum permitted withdrawal from the loan account is referred to as their "drawing power" in an SBI loan. It is the credit limit that can be used for a loan account, determined by your collateral, ability to repay, and other factors. Based on your loan repayment and other credit requirements, the lender determines your drawing power, which may be frequently evaluated.

Even though your loan has an approved amount of Rs.100,000 and a drawing capability of Rs.80,000, you will only be permitted to withdraw up to Rs.80,000 from the loan account. This secures the lender's interests by ensuring that you have enough collateral, are capable of repaying the loan, and you can.

What is drawing power in SBI home loan must be clear to you now.