SBI Privilege Home Loan Scheme

SBI Privilege Home Loan

The State Bank of India (SBI) has launched a home loan exclusively for government employees – the SBI Privilege Home Loan. The customers who are eligible to apply for the SBI Privilege Home Loan are employees of Central or State Government, which includes PSBs, PSUs of Central Government and other individuals.

The loan amount that will be granted to the loan borrower would depend on factors such as the government employees’ income, repaying capacity, age, assets and liability, cost of the proposed house or flat, etc.

Features of SBI Privilege Home Loan for Government Employees

1. Reason to Avail the Loan: The loan can be availed to purchase a new house, improve or extend, buying a plot or for construction.

2. Rate of Interest: The rate of interest charged is lower than the other home loans provided by SBI or any other bank. The interest is charged on a daily reducing balance. So, the faster you pay the loan, the cheaper it is!

3. Repayment period: The repayment period given is up to 30 years. There are no charges or penalty levied for pre-payment of the loan.

4. Processing Fee: There is no processing fee charged on both, the new loan and if the customer needs to transfer the home loan from another bank to SBI.

5. Lower EMI Post Retirement: SBI charges a lower EMI post retirement such that it doesn’t exceed 50% of the current net monthly income.

6. No Discounts: No discounts are given on other expenses such as for the valuer’s fee for valuation report, advocate fee for legal opinion, CERSAI and CIBIL charges.

7. Women Borrowers: SBI offers a special rate of interest for women borrowers. They get a further concession on the interest charged.

8. Age: A regular home loan has an age limit of up to 70 years, whereas SBI Privilege Home Loan allows repayment of loan up to 75 years.

9. Outstanding Balance: The outstanding balance of housing loan from other banks can be transferred.

SBI Privilege Home Loan Availability

The customer can apply for the SBI Privilege Home Loan for the following reasons:

• Construction of house/ flat
• Purchase of built house/flat
• Purchase of under construction house/flat
• Making additions to existing house/flat
• Repairs/ renovation / alterations/ cost of furnishing to the house/flat
• Purchase of land/plot for house building

Documents Required for SBI Privilege Home Loan

Employer Identity Card:

• Loan Application: Completed loan application form duly filled with 3 Passport size photographs
• Proof of Identity (Any one): PAN/ Passport/ Driver’s License/ Voter ID card
• Proof of Residence/ Address (Any one): Recent copy of Telephone Bill/ Electricity Bill/Water Bill/ Piped Gas Bill or copy of Passport/ Driving License/ Aadhar Card

Property Papers:

• Permission for construction (where applicable)
• Registered Agreement for Sale (only for Maharashtra)/Allotment Letter/Stamped Agreement for Sale
• Occupancy Certificate (in case of ready to move property)
• Share Certificate (only for Maharashtra), Maintenance Bill, Electricity Bill, property tax receipt
• Approved Plan copy (Xerox Blueprint) & Registered Development agreement of the builder, Conveyance Deed (For New Property)
• Payment Receipts or bank A/C statement showing all the payments made to Builder/Seller

Account Statement:

• Last 6 months Bank Account Statements for all Bank Accounts held by the applicant/s
• If any previous loan from other Banks/Lenders, then Loan A/C statement for last 1 year

Income Proof for Salaried Applicant/ Co-applicant/ Guarantor:

• Salary Slip or Salary Certificate of last 3 months
• Copy of Form 16 for last 2 years or copy of IT Returns for last 2 financial years, acknowledged by IT Dept.

Income Proof for Non-Salaried Co-applicant/ Guarantor:

• Business address proof
• IT returns for last 3 years
• Balance Sheet & Profit & loss A/c for last 3 years
• Business License Details(or equivalent)
• TDS Certificate (Form 16A, if applicable)
• Certificate of qualification (for C.A./ Doctor and other professionals)

Eligibility to Apply for SBI Privilege Home loan

Interest Rates and Fees for SBI Privilege Home Loan

*Interest rate will vary as per the risk score of the customer

** Based on LTV of the Customer

Documents required for pre-sanction are:

• Advocate's fee for property search and title investigation report.
• Valuer's fee for valuation report.

Documents required for post-sanction are:

• Stamp duty payable for Loan agreement and mortgage
• Property insurance premium
• CERSAI Registration Fee of Rs 50 + GST up to Rs 5 lacs limit; and Rs 100 + GST for limits above Rs 5 lacs.

SBI Privilege Home Loan FAQs

1. Can a self-employed business man apply for the SBI Privilege Home Loan?

No, the SBI Privilege Home Loan is only applicable for employees of State and Central government.

2. Do women borrowers get a better rate of interest when they apply for the SBI Privilege Home Loan?

Yes, women borrowers get a discounted rate of interest when they apply for the SBI Privilege Home Loan.

3. What is the maximum age allowed to repay the SBI Privilege Home Loan?

The maximum age to repay the SBI Privilege Home Loan is up to 75 years.