Insider's Look: SBI Home Loan Process Step-by-Step

Are you confused about the SBI Home loan process? You're in the right place, you'll get answers to all your queries. This comprehensive guide walks you through the entire process of obtaining an SBI home loan, including eligibility requirements, application procedures, features, and benefits. Its objective is to provide clarity and understanding, allowing people to make informed decisions and achieve the best possible outcome for their financial needs.

What Is a Home Loan?

A home loan, also known as a mortgage, is a loan designed to finance the purchase of real estate. It is provided by a lender like a bank or financial institution, with repayments typically ranging from 15 to 30 years.

Despite being a significant financial commitment, home loans can make homeownership more affordable and accessible, allowing for equity building and a stable financial future.

Eligibility Criteria for SBI Home Loan

It is simple to determine the eligibility criteria for an SBI home loan. Here are some basic categories:

Documents Required to Avail SBI Home Loan

• Documents applicable to all the applicants: The applicant must provide a list of documents, including an employer identity card, a loan application form, proof of identity (PAN, passport, driver's license, or voter ID card), and proof of residence (a recent telephone bill, electricity bill, water bill, piped gas bill, or passport).

• Property Papers: The property documents include a registered agreement for sale, an occupancy certificate, a share certificate, a maintenance bill, an electricity bill, a property tax receipt, and an approved plan copy.

  In addition, the builder's registered development agreement, conveyance deed, and payment receipts or bank account statements show all payments made to the builder or seller.

• Account Statement: The applicant must provide their bank account statements for all their bank accounts for the last six months and their loan account statement for the last year.
• Income Proof for Salaried Applicants: Salaried applicants must provide proof of income, such as a salary slip for the last three months, a copy of Form 16 for the previous two years, or IT returns acknowledged by the IT Department.
• Income Proof for Non-Salaried Applicants: Non-salaried applicants must provide proof of income, such as the business address, IT returns, balance sheet, profit and loss statements, business license details, TDS certificate (Form 16A), and professional qualification certificates.

How to Apply for SBI Home Loans

Here are the steps to apply for SBI home loans:

• Step 1: Access the official website of SBI home loan
• Step 2: On the website, complete the eligibility form with your personal and professional information, which includes property category and income source.
• Step 3: To get a loan quote, enter the correct captcha, check the box, and click the 'Get Loan Quote' button.
• Step 4: After you provide your information, SBI will contact you by phone or email with a loan offer.
• Step 5: Once you've accepted the loan offer, submit your application for an SBI home loan.
• Step 6: Get approved for your SBI home loan instantly with simple processing and receive quick confirmation.

SBI Home Loan Application Process Step by Step

Step 1: Fill the Application Form

SBI offers an easy home loan application form for current and new customers. The form is divided into five sections:

• Form-A, which requires all personal information
• Form-B, which includes employment and income information
• Form-C, which selects a specific home loan scheme
• Form-D, which is used for declaration purposes.
• Annexure-A is attached at the end of the form and is used to determine eligibility for the Pradhan Mantri Awas Yojana (PMAY) subsidy.

The guarantor should also fill out the above application form. If you apply for a joint home loan, the co-applicant must also complete the application.

Step 2: Ensure You Submit All the Documents

Applicant must provide three passport-sized photographs, identity proof, address proof, and proof of income.

Self-employed individuals must provide proof of business address, balance sheet, profit and loss statement, business license details, IT returns, Form-16A (if applicable), and a certificate of qualification for professionals such as C.A., Doctor, and others.

Salaried individuals must submit salary slips, Form-16 or IT returns, proof of business address, and a certificate of qualification.

Farmers must submit their last two years' income certificates, land revenue records, and bank account statements.

Non-resident Indians must have a valid visa or work permit, a valid job contract, and relevant passport pages. Employers must provide the blood relative's address and proof of relationship.

Step 3: Application Processing

As part of the loan approval process, SBI charges an application processing fee of 0.35% of the loan amount plus GST, with a minimum of Rs. 2,000 and a maximum of Rs. 10,000.

Step 4: Performing Legal and Technical Checks

SBI considers various legal and technical factors to determine whether the loan is approved. These include valid identity and residence proof, cross-checking bank statements, checking for active loans, thorough income tax returns or Form-16, previous credit history, CIBIL score, and relationship proof with co-applicants for joint home loans. The bank also examines the applicant's current CIBIL score.

Step 5: Loan Sanction Letter

After the verification, you will receive a sanction letter that details the total amount sanctioned and the annual interest rate. The letter is valid for six months and can be used for disbursement. Additional terms and conditions may be included in the letter.

Step 6: Loan Disbursal

The loan disbursement process includes identifying and verifying the property you intend to purchase. After receiving the loan sanction letter, you must submit several documents, including a sale agreement, the builder's NOC, construction progress status, registered sale deed, occupancy certificate, and the builder's demand letter. If SBI is satisfied, they ask for a valid mortgage in their favour.

SBI Home Loan Features and Benefits

The State Bank of India (SBI) offers home loans with competitive interest rates starting at 6.70% per year, suitable for both new and existing home construction or renovation, with a borrowing limit of Rs. 10 crore for up to 30 years.

• Loan Amount: SBI offers a variety of home loan schemes with loan amounts of up to Rs. 10 crore to meet a wide range of societal needs.
• Interest Rate: SBI Home Loan offers affordable EMIs and competitive interest rates beginning at 6.70%, ensuring everyone can afford their own house.
• Prepayment/Foreclosure Charges: SBI Home Loan provides no additional fees for foreclosing or prepaying.
• Processing Fees: The SBI Home Loan processing fee ranges from 0% to 0.50%, depending on the borrower's eligibility and the chosen home loan scheme.
• Application Process: SBI Home Loan can be applied for by customers visiting their nearest branch or logging in online from their comfort zone.
• Flexible Tenure: The SBI Home Loan offers a flexible 30-year tenure and allows repayment based on the borrower's ability to repay.
• Balance Transfer Facility: SBI allows customers to transfer their existing home loan to another bank or NBFC without paying prepayment fees, allowing them to take advantage of better rates and benefits.
• Minimum Documentation: SBI simplifies the home loan process by requiring minimal documentation from customers, resulting in a quick disbursal for their convenience.

Conclusion

What is a home loan? A home loan, also known as a mortgage, is a 15 to 30-year loan from a lender for real estate purchases that provides affordability, increased property value, competitive interest rates, and flexibility.

Eligibility criteria for SBI home loan

SBI home loan eligibility criteria include being a resident Indian between the ages of 18 and 70, having a loan tenure of up to 30 years, and having a loan amount ranging between Rs. 50,000 and Rs. 50 crores.

Documents required to avail of an SBI home loan

• Loan application form
• Proof of identity
• Proof of residence
• Bank account statement
• Income certificate

Apply for SBI home Loans

SBI home loans can be applied for by visiting the official website, completing the eligibility form, receiving a loan quote, being contacted by phone or email, accepting the offer, and submitting the application.

SBI home loan application process step by step

• Fill the Application Form
• Ensure You Submit All the Documents
• Application Processing
• Performing Legal and Technical Checks
• Loan Sanction Letter
• Loan Disbursal

SBI home loan features and benefits

SBI offers home loans with competitive annual interest rates starting at 6.70%, suitable for new and existing construction or renovation. SBI provides a borrowing limit of Rs. 10 crore for up to 30 years, a balance transfer facility, and minimal documentation.