SBI Home Loan

Objective/Purpose

  • Loans upto Rs. 35 lacs, overall cost Rs.45 lacs in metro & others Rs.25 lacs, overall cost Rs.30 lacs exc Staff HL, Repairing Rs 10 lac in metro & Rs.6 lacs in other centres come under Priority Sector Advance
  • Servicing of interest is mandatory irrespective of moratorium period.
  • Interiors & furnishing can also be considered as part of project cost – 25% of Agreement Value without any ceiling.
  • No home loan to promoter for purchasing flat in his own project.
  • No loan for acquiring more than 2 houses in the same project.

Eligibility

  • Minimum Age: 18 yrs
  • Maximum Age: 70 yrs by which the loan should be fully repaid.
  • 2 loans can be given to an individual if he has the capacity to repay. If the family member like spouse, children, parents, siblings join as coborrower the age of the youngest coborrower to be considered to arrive at maximum loan tenor.
  • Other variable income like overtime, bonus, allowances etc after deducting taxes, if any can be added. Expected rental income from the proposed house to be purchased can also be considered by the sanctioning authority with a cap not exceeding NMI after deducting taxes..
  • Depreciation of Prop. Firm add – average 3 yrs or current whichever is less.
  • Borrowers can include family members (spouse, children, parents, siblings) who are not property owners as co-borrowers with approval from DGM(B&O). The Max Loan tenor will be decided based on the age of the youngest co-borrower.

Loan Amount

  • Repair & renovation – maximum Rs.10 lacs.
  • Amount of loan is decided on EMI/ NMI RATIO →
  • NAI <=1.2 – 20%,>1.2 to <=3- 30%,>3 to <=5- 55% >5 to <=8- 60%, >8 to <=10 – 65%,>10 -70%
  • Salaried customer NAI >10 lacs and CIBIL 750 & above, EMI/NMI 75%
  • Reimburse investment from own source/loan from friends/ relatives/ employers for cons/ pur/ repair during last 12 m subject to income & LTV eligibility.
  • Eligible Income for arriving at the max loan will be based on Form 16/ ITR for last 2 years for salaried customers and income verification related due diligence stipulated by Bank’s extant instructions is to be followed.

Margin

  • LTV- Loan to Value Ratio – Loan upto 30 lacs- 90%,
    • Above Rs 30 lacs to 75 lacs – 80%
    • Above 75 lacs – 75%
  • Registration, stamp duty & other document charges can be included as a part of project cost of dwelling unit not exceeding Rs.10 lacs

Repayment

  • Maximum loan tenor 30 years subject to age 70 years.
  • Interest rate – refer to latest circular instructions. Interest rate is linked to EBLR effective 1st October 2019 and will be reset on 1st of every calender quarter. Switch over fee Rs.1000 plus taxes for converting home loans interest rate linked to Base rate/MCLR/SBAR/RLLR to EBLR
  • No home loan on fixed interest rate.

Processing Fee

  • Processing fee including Advocate & valuation fee – 0.35% of the loan amount plus applicable GST, minimum Rs.2,000/- plus applicable GST and maximum of Rs. 10,000/- plus applicable GST.

Important Points

  • Interest calculated on daily reducing bal.
  • Reset of EMI is allowed if 20% or more of the outstanding is paid in one instance. Again, reset of EMI is allowed if there is a change in rate of interest is 1% or more as compared to sanction or last reset.8. Incentives under IT Act.
  • Staff Housing Loan: Loan: Max 90% of Project or Rs. 30 lacs (Sub-staff), Rs. 45 lacs (Clerk), Rs. 60 lacs (Officers upto V) and Rs.80 lacs VI &above.. Repayment: 360 months Principal : interest 2:1, repayment upto Age 75 yrs.