Let’s look at the documents required for a housing loan in SBI in this article.
Are You Eligible?
Loan eligibility depends on many factors. SBI sanctions loans to people who are older than 18 years and not more than 70 years. The amount of loan sanctioned depends on many factors such as:
- Loan to value ratio (80% to 90%) - if the property value is Rs 50 lakh, the bank will only sanction a loan equal to 80% or 90% of Rs 50 lakh.
- Credit score - this is the CIBIL score of the borrower. A CIBIL score above 750 is required to be eligible to take a housing loan.
- Income of the borrower.
- Age of the borrower.
- Work experience and employer name.
- If self-employed, the nature of the business.
- Any other liability.
How Does SBI Check the Financial Eligibility of the Borrower?
The bank statement of the borrower shows the income and expenditure, transactions, savings, investment, loans, average bank balance, charges for cheque returns, other loans and liabilities including credit card dues. The statement gives a picture of the financial position of the borrower.
The bank calculates the loan amount that the borrower is eligible to take by checking the last 6 months bank statement.
The other documents such as last 3 months salary slips, form 16, and income tax returns are also used to check the borrower’s financial position and calculate the loan amount that he is eligible to take.
What About the Field Investigation?
The bank representatives physically visit the borrower’s house to check his residential address and contact details.
Next, the bank representatives check the employer credentials of the borrower, visit his office, check the industry the borrower works in, and the stability of the employer.
Mandatory Documents Needed for Salaried Applicants
SBI requires the following documents to performs due diligence checks:
- Loan application form (filled-in) with three passport-sized photographs duly signed.
- Proof of identity (any one of these): PAN/ passport/ driver’s license, voter ID card.
- Proof of residence (any one of these): Recent copy of telephone bill/ electricity bill/water bill/ piped gas bill or a copy of passport/ driving license/ aadhar card.
- Employer ID Card (with photo).
- Last 6 months bank account statements for all bank accounts of the borrower.
- Last 3 months salary-slip of the borrower.
- Loan account statement (if the borrower has taken any other loan) for the last one year.
- Submit a cheque with the amount of processing fee due.
- Copy of form 16 or Income Tax Returns for the last two financial years that is acknowledged by the IT department.
To check the property papers, the banker visits the property to evaluate the condition of the property, construction quality, and encroachments(if any).
Property Documents Required for Home Loan are:
- Permission for construction (where applicable).
- Registered agreement for sale/allotment Letter/stamped agreement for sale.
- Occupancy Certificate (in case of ready to move property).
- Receipt with current payment of the maintenance bill, electricity bill, and property taxes.
- Copy of approved layouts and building plan.
- Registered development agreement of the builder.
- Conveyance Deed (for the new property).
- Payment receipts or bank account statement with details of the payments made to builder/seller.
Mandatory Documents Needed for Self-employed Applicants
All documents listed above (where applicable) plus the ones listed below:
- Business Profile.
- Proof of business existence such as a partnership agreement, and so on.
- Certificate of educational qualification.
- Income Tax returns with the computation of income for the last 3 years.
- The chartered accountant certified/ Audited Balance Sheet and Profit and Loss Account for the last 3 years.
- Business address proof.
- Business License Details (or equivalent).
- TDS Certificate (Form 16A, if applicable).
- Certificate of qualification (for professionals such as chartered accountants, doctors and so on).
Interest Rates, Tenure and Processing Fees for SBI Loans
SBI bank home loan interest rates in India
The interest rate applicable as of 2 July 2018 is 8.35% p.a to 8.65% p.a. For women borrowers, the interest rate is slightly lower at 8.3% p.a. To 8.6% p.a
SBI processing fee is 0.35% of the loan amount. The minimum and maximum processing fee are Rs 2000 and Rs 10,000 plus taxes respectively.
The legal and technical due diligence specialists such as lawyers and valuers verify the title of the property and determine the value of the property.
The borrower must pay the legal and technical due diligence charges separately and is based on the actual amount charged by the lawyer and valuer.
Maximum Tenure of the loan is 30 years.
What is a Pre-sanctioned Home Loan? What is the Process to be Followed to Avail a Pre-sanctioned Home Loan?
SBI provides a pre-approved home loan to eligible borrowers. The borrower must submit an application form with the documents listed above. The loan eligibility will be determined based on the income of the borrower.
After receiving the application, the banker performs due diligence checks and sanctions the loan. He collects a processing fee at the time of sanctioning the loan.
Are There any Special Offers for Women Borrowers?
Interest rate concession for women borrowers.
For women borrowers, the interest rate of the loan is lower at 8.3% p.a to 8.6% p.a.
SBI Housing Loan Schemes
The different SBI housing loan schemes are as follows:
SBI Balance Transfer of home loan:
In this case, eligible borrowers can switch their existing loan (with other banks) to SBI if they satisfy the given conditions.
SBI NRI home loan:
Non-Resident Indian (NRI) borrower can take a home loan to buy property in India.
SBI Flexipay home loan:
Salaried borrowers get a 20% higher home loan eligibility with exclusive benefits. During the moratorium (pre-EMI), the borrower can opt to pay interest only and also pay moderated equated monthly instalments (EMI) after that.
Features of SBI Flexipay loan are:
- It is only for Resident Indians.
- Minimum age is 21 years.
- Maximum age is 45 years to apply for a loan, and up to the age of 70 years of repayment.
- Loan tenure is 30 years.
SBI Privilege home loan:
Borrowers working in government of centre and state government can avail this loan. The eligible loan amount is based on factors such as income, repaying capacity, age, assets and liabilities, cost of house/flat, and so on.
SBI Shaurya home loan:
This loan is exclusively for defence personnel. The features include lower interest rates, easy repayment options, longer repayment period, and so on.
SBI Realty home loan:
You take this loan if you want to buy a plot for construction of a house. You must construct the house within 5 years from the date of loan issue.
The bank also provides an additional loan to construct the house. The bank gives a maximum loan of Rs 15 crores for a tenure of 10 years.
SBI Bridge home loan:
Do you want to buy a bigger house in a better location with more amenities, but do not have enough money?
Do want to upgrade your house by selling off your existing house?
If you are facing a shortage of funds or short-term liquidity mismatch, SBI Bridge home loan is the right choice.
SBI Bridge home loan helps mitigate the shortage of funds and avoid the distressed sale of your existing house.
The other SBI home loan products are as follows:
SBI Tribal Plus.
SBI Earnest Money Deposit (EMD)
SBI Reverse Mortgage Loan
SBI (CRE Commercial real estate) home loan
SBI (Loan against property).
Visit www.propertyadviser.in to know about the latest real estate news.
By: LOTUS TECH
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