RELATED HOME LOAN PRODUCTS

A) Earnest Money Deposit (EMD) Scheme – Many Government agencies, like Urban Development Authorities and Housing Boards, periodically come out with schemes for sale of plots/houses, wherein applicants have to submit 10-20% of the cost of plot/house as Earnest Money Deposit (EMD) and allotments are made by draw of lots.
The SBI EMD scheme is designed for financing against earnest money for allotment of a house/plot. Individuals above 21 years of age and with a steady source of income are eligible to avail loans under this scheme.

Attributes of Earnest Money Deposit (EMD) Scheme –

-No minimum income criteria.
-Margin waived in al cases.
-Eligible for 100% of application money, subject to maximum loan amount of Rs.10 Lacs.
-Waiver of security in all cases irrespective of the loan amount.

The above mentioned features of the scheme are applicable subject to the following conditions:
-Allotment letters/refund orders should be routed through SBI.
-Lump sum amount equal to 6 month’s interest to be taken upfront.
-PDCs one for the principle amount of EMD and another towards interest for the next 6 months should be taken to meet the eventuality of refund getting delayed.

B) SBI Reverse Mortgage Loan (LOAN FOR WELFARE OF SENIOR CITIZENS IN INDIA) – SBI Reverse Mortgage Loan Enables house-owning Senior Citizens having inadequate income to meet their financial needs for renovation/repairs to house, medical & other personal purposes. There is no compulsion for the borrower to repay a RML during his or her lifetime or till such time he or she continues to stay in the house.
The borrower continues to retain ownership of the house. Also, the borrower will have the option to prepay the loan at any time during the loan tenure and there will be no pre-payment penalty.