State Bank of India (SBI) is the largest and one of the oldest public sector bank of India. It started its banking business in India in the year 1806 with a market share of 20% in deposits and loan in the banking sector. SBI has been ranked at the 232nd position in the Fortune Global 500 list of the year 2016.
SBI and its five associate banks have a comprehensive list of banking products and services that they offer to their customers through its wide-spread branches all over India. They offer products to residents as well as non-resident Indians. Apart, from banking products, SBI and its associates offer products like insurance, credit cards, fund management and investment in capital markets as well.
With a market cap of Rs. 190,000 crores and total outstanding loans of Rs. 11 lakhs crore as on March 2015, SBI stands at the leading position well ahead of the private sector banks in India. This is at least in part due to their innovative products and competitive interest rates.
Firstly, the customer needs to fill an online form to get an instant e-approval. After that, the bank officials shall visit the customer to complete all the penalties. Also, the customers can upload all their documentation online. This has helped in reducing the processing time considerably and made the whole process customer-friendly.
SBI and its five associate banks have a comprehensive list of banking products and services that they offer to their customers through its wide-spread branches all over India. They offer products to residents as well as non-resident Indians. Apart, from banking products, SBI and its associates offer products like insurance, credit cards, fund management and investment in capital markets as well.
SBI Home loan:
SBI is one of the largest providers of home loans in India. With their comprehensive list of different kind of home loan products, they have something that meets everyone’s expectations. SBI was voted as “The most preferred home loan provider” by the consumers themselves in CNBC Awaaz Consumer Awards. The easy to avail, transparent and trusted SBI brand of home loans are better than any other home loan products in the market.With a market cap of Rs. 190,000 crores and total outstanding loans of Rs. 11 lakhs crore as on March 2015, SBI stands at the leading position well ahead of the private sector banks in India. This is at least in part due to their innovative products and competitive interest rates.
Features of SBI home loan:
- SBI home loan is available with minimal charges;
- Interest is charged on daily reducing balance at very low rates in comparison to similar products available in the market;
- They offer the loan with no prepayment penalties. So, if you have surplus money, you can prepay the loan anytime and reduce the interest burden at no extra charges;
- Apart from loans, their home loan products come with other exclusive benefits as well;
- No hidden costs and charges;
- With such a widespread network of branches and the online facilities, the loan can be availed from any part of India easily.
How to apply for SBI home loan:
SBI home loan can be applied by visiting any branch of SBI as well as through the online route at just a click of the mouse. SBI recently started the online home loan application process which helps customers check their eligibility and find a quote in accordance with their requirements.Firstly, the customer needs to fill an online form to get an instant e-approval. After that, the bank officials shall visit the customer to complete all the penalties. Also, the customers can upload all their documentation online. This has helped in reducing the processing time considerably and made the whole process customer-friendly.
SBI home loan products:
SBI offers a variety of home loan products designed to meet everyone’s requirements. Here are few of the home loan products offered by SBI:
- Home Loans: This product is offered for buying a new home, buying a pre-owned house, and for the construction of a house;
- Loan for earnest money deposit: This loan can be availed to finance the earnest money requirements to book a residential plot or a house property that us sold by government housing agencies or housing boards. This loan can be repaid by the housing loan availed from SBI later;
- Takeover home loans: this loan facility allows customers to shift their existing home loan from any other commercial, public, private, housing finance company or foreign bank to SBI;
- Tribal Plus scheme: this is a specialized scheme for people living in the hills or tribal area of Northeast India and areas around Bhopal, Lucknow. Chandigarh, Patna, and Bhubaneshwar;
- SBI Privilege Home loan: This home loan product is specifically meant for government employees;
- SBI Shaurya home loans: only defence personnel can avail a home loan under this category;
- Her Ghar: As the name suggests, this home loan variant is exclusively for women home owners and is offered at a concessional rate of interest;
- FlexiPay home loan scheme: Availing a loan under this scheme, help young professionals reduce their financial burden by repaying the loan in easy installments.
- NRI loans: SBI has special home loans to cater to the needs of NRIs.
SBI home loan interest rates:
SBI offers home loans at very competitive rates in comparison to other banks. Presently, it is offering home loan at the rate of 9.15% onwards depending upon the product you choose. Whereas, SBI home loan concessional rates that are offered to women start at 9.10% onwards.
Eligibility criteria and documentation required for availing SBI home loans:
Eligibility criteria and the documentation required depends upon the employment status of the person who is applying for the loan. Here are the requirements that are needed to be met for availing the loan:
- In the case of salaried employees:
If the applicant is serving as an employee with a company, then he needs to be 18 years of age to a maximum of 70 years to get their home loan approved from SBI. The minimum income should be at least Rs. 1.2 lakhs p.a. to avail a home loan between Rs. 5 lakhs to a maximum of Rs. 1 crore. The loan can be repaid in 5 years to 20 years. The applicant should be working for at least 2 years with the current organization in order to be eligible for the home loan.
- Documents required:
- Application form with photograph
- Residential and identity proof as accepted by bank
- Salary slips for the last 3 months
- TDS certificate, i.e. Form 16 of the previous year
- Salary Account statement for the last 6 months
- A cheque for the home loan processing fee.
- In the case of a self-employed person:
If the person is self-employed, then he can avail a loan when aged between 21 years to 70 years. Minimum annual income of Rs. 200,000 is required to be eligible for the home loan. A loan of Rs. 500,000 to Rs. 2 crores can be availed by a self-employed individual and this can be repaid within 5 to 20 years’ time. The applicant should have been in the same business or profession for at least last 3 years in order to qualify.
- Documents required:
A majority of the documents required to be submitted by a self-employed individual are similar to those that need to be submitted by a salaried applicant. The documents that are specified to self-employed professional and businessmen are as follows:
- Educational certificates
- Proof of business existence
- Certified copies of income statement and balance sheet for last 3 years
- Bank statements for last 6 months
- A cheque to cover the applicable processing fees
Presently, there are no processing fees on SBI home loans if it is being transferred from a different lender to SBI or if the loan is being granted for a SBI approved housing project.
This is a guest post by PaisaBazaar Team
This is a guest post by PaisaBazaar Team
