SBI - Short Term Housing Loan

SBI - Short Term Housing Loan

Home is where the heart is! At SBI, we know this better than most - the toil and sweat that goes into building/buying a house and the subsequent pride and joy of owning one.

This is why our Housing loan schemes are designed to make it simple for you to make a choice at least as far as financing goes!

No hidden clauses or costs or unnecessary documentation. Our loans have the longest tenors and our repayment terms are amongst the most flexible. We offer you a totally transparent process and yes, there is no fine print! We even give you an in-principle approval prior to identifying a house/flat, relieving you of the tension of anticipating the approved amount!

Last, but not the least, we have specialized Housing loan branches to serve your needs better.

Our newly opened Personal Banking branches also specialise in this. Click here for a list of our PBBs

Our special Short Term Housing Loan Scheme for loans of repayment period upto 5 years carries still lower rates of interest.


The Scheme

You can avail of a housing loan for:

* Purchase or construction of a new house/ flat.
* Purchase an existing (old) house/ flat.
* Extension, repair, renovation or alteration of a house/ flat.
* Purchase a plot of land meant for construction of a dwelling unit.


Enjoy the SBI Advantage

Why should you opt for a housing loan from State Bank of India?

* Excellent service and lower costs.
A quick survey of similar schemes available elsewhere and you will find that SBI housing loans offer you the..
* Lowest Equated Monthly Instalments (EMI)
Lowest interest rates, currently between 7.50% pa and 8.50% p.a. on daily reducing balances
A nominal processing fee of 0.25% will be charged. Compare this with the 1.5% - 2% charged by others.
* No hidden costs or administrative costs
* In-principle approval given prior to your identifying a house /flat, giving you flexibility in choice.
* Complete transparency - When we say our rate of interest is 8% p.a. you pay only 8%. When others say 8.5%, you may be paying even 10% p.a., as interest may be levied even on the amounts you have already repaid. This is because we apply interest on a daily reducing balance while housing finance companies/ other banks mostly apply interest on annual reducing balance.

Always compare the Equated Monthly Instalments (EMI) and the total repayments you would be required to make rather than rates of interest.

Salient Features


Purpose

You can take a loan for:
# Purchase or construction of a new house/ flat.
# Purchase an existing (old) house/ flat.
# Extension, repair, renovation or elteration of a house/ flat.
# Purchase a plot of land meant for construction of a dwelling unit.
# Repayment of housing loan availed from other banks/financial institutions to avail of the benefit of our low rates of interest.

Eligibility

You can avail of an SBI Housing loan if you are over 21 years of age and have steady source of income.


Documents Required

What are the documents that I need to provide?

You will need to furnish the following documents along with the completed application form:

* Passport size photograph
* Proof of residence
(This applies only to new or non-bank customers, and could be either a PAN identity card, voter identification card or passport)
* Sale Deed/ Agreement of Sale
* Bank account Statement or passbook, for the last six months
* For employees or people in service, you also need to provide:
* Salary certificate and other information, if any, about your repayment capacity
* Form 16 or a copy of the Income Tax Returns for the last 2 years
* For self employed and other IT assessees:
* IT returns for the last 3 years· Receipts of advance tax paid
* Any other information about your repayment capacity

In addition to the above mandatory documents, you are also required to furnish one or more of the following documents wherever applicable:·

* Letter of allotment from the housing board or society
* Copy of the approved plan
* Permission for construction
* Copy of the relative order in the case of conversion of agricultural land. (not required where the house/flat has been constructed by an approved builder)
* In the case of an old existing house, you will need to get a valuation certificate from approved valuers as well as a certificate from a government approved architect /structural engineer regarding the condition of the flat/house as well as its remaining life. This will give you the comfort of knowing that the property you are purchasing is of sound construction.


Loan Amount

While there is no ceiling to the amount of loan we sanction the actual loan amount is determined on the basis of repayment capacity taking into account your income, age, assets and liabilities. As a rule of thumb - Upto 60 times the net monthly income will be sanctioned depending upon your age. Usually, your spouse's income and the expected rental would also be taken into account.

Margin

Your contribution (margin) for the housing loan is as under: 15% for new house/ flat 20% for old house/ flat 20% for repairs and renovation.

Interest

Avail of the lowest interest rates in the market. We give you the option of locking in the low interest rates for the full tenure of the loan or keeping your interest option open by linking it to the Bank's Term Lending rate. Therefore, you could either avail the loan at a fixed rate of interest, which stays constant throughout the loan period, or at a floating rate of interest where the interest changes (increases or decreases) depending on changes in the Bank's Term Lending Rate.

Click here to view the interest rates.

Repayment

In 60 Equated Monthly Instalments.Our repayment terms are amongst the most flexible in the market. Depending on your age and capacity to repay, you could pay back the loan in easy installments.You may prepay at will without attracting any penalty, or pay more than your stipulated monthly installment at any time, depending upon availability of funds with you. However, in case of takeover of loan by other banks/finance companies, prepayment penalty of 2% may be levied.


Security

As per bank's extant instructions.




Take Over of Loan

If you have already taken a housing loan from any other bank/financial institution and wish to benefit from our low rates of interest, we can take over your existing loan.

In-principle Approval

We also give in-principle approvals based on your income and capacity to repay, to enable you to identify a house/ flat with full confidence.

All loans are at the sole discretion of the Bank.

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