Housing Loan

With the number of banks lending at attractive rates of interest, the buyers have great flexibility in choosing their financier. Housing loan will be sanctioned depending upon your repayment capacity and according to your income. Your spouse's income can be included, if you want to increase the amount of your loan.

HOME LOAN PRODUCT VARIANTS (SBI)

i)

SBI Maxgain (Home Loan as an overdraft)

An innovative and customer-friendly product to enable you to earn optimal yield on your savings and minimize interest burden on Home Loans, with no extra cost. The loan is granted as an Overdraft facility with the added flexibility for you to operate your Home Loan Account like your SB or Current Account. The product serves to minimize your interest cost by enabling you to park your surplus funds in SBI-Maxgain (with the benefit to withdraw the surplus funds whenever you require), specially in the wake of low yields from other deposit/ investment avenues.

Minimum Loan Amount: Rs.5 lacs

ii)

SBI Realty

HOME LOANS FOR PURCHASE OF PLOT OF LAND FOR THE PURPOSE OF CONSTRUCTION OF A DWELLING UNIT A unique product if you are on the lookout for a loan to purchase a plot of land for house construction. The loan is available for a maximum amount of Rs.10 crore and with a comfortable repayment period of upto 15 years. House construction should commence within 2 years from the date of availment of SBI-Realty Housing Loan Customers are also eligible to avail another Housing Loan for construction of house on the plot financed above with the benefit of running both the loans concurrently. (Other terms and conditions as applicable to regular Home Loans)

iii)

SBI Home Equity

SBI Home Equity scheme is launched for granting personal loans to the banks home loans customers against the security of their house property. All home loans customers with a satisfactory repayment record of at least one year and who maintain a Savings bank or current account with us. The loan can be used for any purpose, viz. extension/repair of house, purchase of car/ consumer durables, education / medical expenses of family members, personal expenses, etc. There will be no need to obtain documentary evidence for the end-use of funds. However a certificate from the customer in the application to the effect that the loan will not be used for speculative purposes would be obtained. Minimum Loan Amount: Rs.50,000.00 Maximum : Rs.2 Crores Interest Rate: Term Loan 1.25% above Base Rate i.e 11.25% p.a. (Base Rate:10% p.a.) Overdraft 1.50% above Base Rate i.e 11.50% p.a. (Base Rate:10% p.a.) iv) NRI Home Loans

HOME LOANS TO NON RESIDENT INDIANS (NRIs) AND PERSONS OF INDIAN ORIGIN (PIOs HOLDING A FOREIGN PASSPORT) Eligibility Individual(s) over 18years of age with a steady source of income who Are Non Resident Indians (NRIs) holding a valid Indian passport. Are persons of Indian Origin(PIOs) holding a foreign passport. Minimum employment tenure in India/abroad not less than 2 years. Loan Amount The loan amount is to be determined on the basis of repayment capacity taking into account income, age, assets and liabilities, qualifications, stability of occupation, and employment prospects on return. The loan amount is subject to the following: Minimum: Rs. 3 lacs Maximum: Maximum permissible loan amount would be determined by EMI/NMI ratio criteria as applicable to regular Home Loans scheme for Resident Indian customers, which is 30% for Net Annual Income (NAI) upto Rs.2 Lac, 50% for NAI above Rs.2 Lac

and upto Rs.5 Lac, 55% for NAI above Rs.5 Lacs and upto Rs.10 Lacs, 65% for above Rs.10 Lacs. v) SBI Tribal Plus

SPECIAL HOME LOAN SCHEME FOR HILLY/TRIBAL AREAS 'SBI-Tribal Plus' Home Loans, a Special Scheme designed for Hill/Tribal areas for extending financial assistance to individuals in such areas to : a. Purchase or construction of a new house / flat (without mortgage of land) b. Purchase of an existing (old) house / flat which is not more than 10 years old. c. Repair /Renovation/extension of an existing house or flat. d. Loans given against Third Party Guarantee e. Maximum loan Rs.10 lacs f. Maximum Loan Term 15 years vi) Gram Niwas

HOME LOANS TO FARMING AND POOREST OF THE POOR IN RURAL AREAS The Scheme covers all rural and Semi-urban centres. Rural Area for the purpose of the Scheme is the area comprised in any village including the area comprised in any town, the population of which does not exceed 50000 as per 2001 census. The scheme seeks to provide home loans to farming and poorest of the poor in rural areas for the purpose of purchase or construction of a house, repairs and renovation, purchase of plot for the purpose of construction of a house/shed etc. vii) Sahyog Niwas

RURAL HOME LOANS TO SELF HELP GROUPS The Sahyog Niwas scheme has been instituted to finance the self help groups with a good track of payment record for 2 years, for on lending to members for housing in rural areas, covering the following purposes. i) For the purchase or construction of a house exclusively or including the housing needs of activities carried by them. (Dairy shed, tailoring shed/shop, grocery stores etc.) ii) For the renovation or repair of an existing house / shed iii) For the purchase of a plot of land for the purpose of house construction.

iv) For the extension of existing house / work space to existing house / shed.

viii)

SBI Green Home Loan

State Bank of India has adopted a Green Banking Policy with an objective of contributing towards the fight against the adverse climate change. One of the initiatives approved by the Board for this purpose is incentivizing customers who go in for Green Projects, i.e. those projects which reduce Carbon Emissions and promote Renewable Energy. Green Housing or Green Home is one of the types of projects identified for this purpose. At present State Bank of India the only Bank in the country supporting the cause of Green Buildings by offering 0.25% concession in interest rate and waiver of processing fees, on the existing home loan products to customers who go in for Green Projects. NEW PRODUCTS
i)
SBI Surakshit Home Loan

Home Loans with Life Cover. Other features like tenure, Loan To Value(LTV), eligibility are as per the standard schemes. Life Insurance Premium can be added to the Project Cost.

ii)

SBI Yuva Home Loan

Eligible: Salaried employees of Companies from the private sector, MNCs, Government undertakings, PSUs, Government employees. Age: Between 21 years to 45 years Minimum Net Monthly Income: Rs.30,000 Loan Term : Maximum 360 months. Permissible loan amount : 20% higher

Repayment : First 36 months Only the interest applied during the month will be recovered.

37th month onwards Regular EMIs Type of Loan : Term Loan Only Features, other than those mentioned above will be the same as those applicable to SBI Home Loan scheme.

iii)

SBI Home Loan PAL

( Pre-Approved Limit )

Benefits of this product: (1) Under this, your Eligible Loan Amount is assessed before finalization of property deal and a Pre-Approved Loan Arrangement Letter (PLAL) is issued to you. (2) Customer can confidently negotiate with the builder/seller after getting a sanction. The Modalities are as under: 1. All the documents prescribed for Home Loan, except property documents will be collected from the applicant along with the application form.

2. The loan eligibility will be assessed on the basis of income details of the applicant and PLAL issued. 3. Non-refundable processing fee as applicable to the Home Loan will be collected upfront.

4. PLAL will be valid for a period of 2 months. Property papers will be required to be submitted by the borrower within the validity of PLAL. Processing fee will not be levied again. 5. Pre-approved loan arrangement letter (PLAL) will carry the eligible loan amount calculated on the basis of prevailing interest rates. Loan amount calculated on the basis of prevailing interest rates will be valid for a period of 1 month (If the interest rate is revised downwards within a period of 1 month, then the borrower will be given the benefit of such downward revision.). Thereafter the interest rates applicable on the date of sanction of Home Loan will be applicable.

6. Minimum Loan amount: Rs.10 Lacs.

Eligibility: Minimum age: 18 years as on the date of sanction Maximum age: 70 years. i.e. the age by which the loan should be fully repaid, subject to availability of sufficient, regular and continuous source of income for servicing the loan repayment. Loan Amount: Actual loan amount will be determined taking into consideration such factors as applicants income and repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc. To enhance loan eligibility you have option to add:

1)

Income of your spouse/ your son/ daughter living with you, provided they have a steady income and his/ her salary account is maintained with SBI. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be rented out. Depreciation, subject to some conditions. Regular income from all sources.

2)

3) 4)

List of papers/ documents applicable to all applicants Completed loan application 3 Passport size photographs Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card) Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID card) Proof of business address for non-salaried individuals Statement of Bank Account/ Pass Book for last six months Signature identification from present bankers Personal Assets and Liabilities statement

For guarantor (wherever applicable): Personal Assets and Liabilities Statement 2 passport size photographs Proof of identification as above Proof of residence as above Proof of business address as above Signature identification from his/her present bankers

Additional documents required for salaried persons : Original Salary Certificate from employer TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly acknowledged by IT Deptt. Additional documents required for Professionals/self- employed/ other IT assesses: Acknowledged copies of three years I.T. returns/ Assessment Orders.

Photocopies of challans evidencing payment of Advance Income Tax.

Terms used in Housing Finance

EMI: Equated Monthly Installment till the loan is paid back. It consists of a portion of interest and the principal Floating Rate of interest: Rate of interest which varies with the market lending rate. This means that there is an element of risk of paying more than budgeted amount in case the lending rates goes up Monthly Reducing balance: In this system interest reduces monthly with repayment of Principal amount Annual Reducing Balance: In this system principal is reduced annually at the end of the year so you end up paying interest even for the portion of principal you have actually paid back Fixed rate of interest: Rate of interest remains unchanged throughout the period of the loan Processing charge: It's a fee payable to the lender on applying for the loan Prepayment Penalties: When loan is paid back before the agreed term of the loan, then banks/ institutions charge penalty for the prepayment Commitment Fee: Some institution charge commitment fee in case the loan is not availed within a stipulated period, after it is processed and sanctioned Miscellaneous Cost: It is quite possible that some lenders may charge documentation or consultant charges.