SBI Realty Home Loan Scheme

SBI Realty Home Loan

The State Bank of India (SBI) along with its many loans offers the customer the SBI Realty Home Loan. This loan is provided to customers who wish to purchase a plot for construction of a dwelling unit. The construction of the house needs to be completed within 5 years from the date that the loan has been sanctioned.

This loan comes with the flexibility of availing another loan for constructing a house on the land that is purchased. A customer is, therefore, allowed to avail two simultaneous loans with the SBI Realty Home Loan.

The maximum loan amount that can be lent to the customer is up to 15 crores. The loan borrower is given a maximum duration of 10 years to repay this loan.

SBI Realty Home Loan Features and Benefits

The key features of the SBI Realty Home Loan are as follows:

Loan for Plots: As the name suggests, the loan is meant for purchase of an undeveloped property rather than an apartment or bungalow ready for possession. Although, it allows the customer to take an additional home loan to construct the house after the plot is bought. Both the loans can be operated simultaneously.

Interest Rate: The interest rate is among the lowest in the market – with 9.35% (MCLR+20 basis points) for women and 9.4% (MCLR+25 basis points) for others. The rate is floating, based on a daily reducing balance and the benchmark is 1-year MCLR.

Joint Loan: The customer can add the income of their spouse or children living with them, if their salary accounts are held in the SBI to improve their chances of getting a loan. If the wife/daughter (unmarried) takes part in the loan, the discounted interest rate will be applicable while paying off the loan.

Fees: The customer does not have to pay any additional fees for making pre-payments or partial payments towards the loan amount. In fact, it is recommended to deposit every additional amount in the loan account whenever feasible, so that the amount is reduced from the principal amount the interest is charged on the lower amount instead.

Reward Points: The customer can become a part of the State Bank Rewardz programme, which gives him/her reward points on each transaction.

Eligibility Criteria for SBI Realty Home Loan

If you want to avail an SBI Realty Home Loan, you need to meet the following criteria:

Minimum age: 18 years

Maximum age: 70 years at the time of maturity of loan

Income: Income is an important eligibility criterion for SBI Realty Home Loan. The EMI you have to pay is based on your income.

• If the customer’s net annual income is up to Rs. 2 lacs, then the EMI cannot exceed 30% of the income.
• With an income of up to Rs. 5 lacs, the EMI cannot be more than 40% of the income.
• For up to Rs. 10 lacs the maximum permissible EMI is 45%.
• For an income of more than Rs. 10 lacs, 50% of the income can be paid as EMI.

Repayment of Loan: The customer must be able to pay off the loan in 15 years.

SBI Realty Home Loan Fees and Charges

The fees and charges applicable on an SBI Realty Home Loan are as follows:

Processing Fees: For loan amount up to 25 lacs:

• 0.25% of loan amount Minimum – Rs.1000
• Between 25 lacs and 75 Lacs – Rs. 6500
• Above Rs 75 lacs –Rs. 10,000

Advocate’s fee: An advocate’s fee will be charged for property search and title investigation report before the home loan is approved. The amount will depend on the professional’s fees.

Valuer’s fee: A valuation report of the property needs to be done before the sanction of the loan. The valuer’s fee will be charged as applicable.

Stamp duty: The mortgage papers and the loan agreement need to be notarised on the stamp paper and hence, a stamp duty needs to be paid to the bank. Note that the stamp duty on property registration is included in the loan amount already.

Property insurance premium: Home insurance is automatically included when you take a home loan from SBI . However, you can choose to opt out of the insurance and insure your property with another insurer.

CERSAI Registration Fee: This refers to Central Registry of Securitisation Asset Reconstruction and Security Interest (CERSAI), which is a centralised online mortgage registry in India. To register the mortgage of your property with CERSAI, the bank charges Rs. 250 and GST on loans of up to Rs. 5 lacs, and Rs. 500 and GST for amounts above Rs. 5 lacs.

Interest Rates and Fees for SBI Realty Home Loan

*Interest rate range indicates that rates will vary as per the risk score of the customer

The pre-sanction fee for SBI Realty Home Loan includes:

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

The post-sanction fee for SBI Realty Home Loan includes:

• Stamp duty payable for Loan agreement & 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

Documents Required for SBI Realty Home Loan

List of papers/ documents applicable to all applicants:

• Employer Identity Card
• 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 Department.

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

SBI Realty Home Loan FAQs

1. Can I take the SBI Realty Loan to buy a flat?

No, the SBI Realty Home Loan can only be taken if you wish to buy a plot and construct your own house.

2. Is it permissible to take another home loan from SBI after taking a Realty Home Loan to build the house?

Yes, you can run concurrent home loans if the first loan taken was the SBI Realty Home Loan. The second loan will help you to build your dream house.

3. Can a husband and wife apply for the loan as joint applicants?

Yes, they can. The wife can avail the lower interest rate available women. If the husband is a co-applicant, he will need to pay the normal interest rate.