How to apply for home loan in State Bank of India

Every employee seeks to have an own house for him to prevent from accrued rental charges. For that, number of banks are ready to give housing loan to fulfill the dreams of an employee. In this regard, a employee has to think how much amount will be taken as loan from the bank, how much interest rate that bank offers to customers and How much period can a customer take to pay the loan.

Getting home loan in SBI:

In India, State bank of India is the reputed public sector bank, first a customer will approach this bank to take home loan. Come to the details of home loan in this bank, SBI offers 10.75% of interest rate over tenure for the amount up to 30lakhs rupees and 11% of interest rate will be from 30lakhs to 75lakhs. SBI offers 11.25% of interest rate above 75 lakhs rupees. To get home loan, customer should have minimum age of 18 years and customer has to repay all the loan amount before 70 years. As a customer,
one has to satisfy the requirements to get home loan. They are:
a)Customer should haveregular income.
b)Customer ensure that he will have repayment capacity.
c)Customer should have assets and house or flat as security.
To increase the eligibility of home loan, customer has to produce evidence of steady income of spouse or son or daughter which satisfies the estimation of SBI. Processing fee for the home loan up to 25 lakhs is 1000 rupees. Between 25 lakhs and 75 lakhs, processing fee will be 6500 rupees. Processing fee for the home loan above 75 lakhs will be 10000 rupees. In addition to processing fee, there are advocate's fee for property search, valuation report and stamp duty for loan agreement etc., Customer who have taken home loan has to repay the loan during the period of 30 years or up to 70 years of age. SBI will take the option that which will complete earlier in these two.

Those who seek home loan has to produce documents which will be importance for the processing by SBI. A completed application, 3 passport size photographs, photo identity like voter ID card or driving license or IT PAN card, proof of residence like photo copies of current bill or Telephone bill, Bank statement or pass book for last six months from the date of applying for the loan, signature identification getting from bankers and statement of personal assets. If guarantor also required then they should produce same documents that customer would have produced. Customer has to produce original salary certificate from his authority and IT returns of last two years assigned by income tax department. This is all about the information on home loans in SBI.

For getting home loan from SBI, this bank asks collateral such as LIC policies, government promissory notes, shares and gold ornaments. These are all for the purpose of ensuring that the customer has capable to repay the loan amount. As this loan is home loan so this should be used for the construction of the house. Therefore, bank asks the customer about the plan of constructing house in the flat approved by local authorities. At the same time, the customer has to produce the sanction letter of local authorities to construct the house to bank authorities. One more important thing that customer has to take insurance for the house or flat in joint names of bank and customer. Bank authorities has right to inspect any time during construction by appointed auditor or others. So, customer has to be very careful in this respect. In present situation, only floating rate of interest facility is provided by SBI so that bank will intimate changes in interest rates through notice boards
or news papers or posting in pass book.

How to apply for home loan in State Bank of India

Getting home loan in SBI:

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