SHORT TERM HOUSING LOAN

Purpose for availing the SBI SHORT TERM HOUSING LOAN : –
-Purchase or construction of a new house/ flat.
-Purchase an existing (old) house/ flat.
-Extension, repair, renovation or alteration of a house/ flat.
-Purchase a plot of land meant for construction of a dwelling unit.

Eligibility – You can avail of an SBI Housing loan if you are over 21 years of age and have steady source of income.

Documents Required for SBI SHORT TERM HOUSING LOAN

What are the documents that I need to provide for SBI SHORT TERM HOUSING LOAN?

-Passport size photograph
-Proof of residence (This applies only to new or non-bank customers, and could be either a PAN identity card, voter identification card or passport)
-Sale Deed/ Agreement of Sale
-Bank account Statement or passbook, for the last six months
-For employees or people in service, you also need to provide:
-Salary certificate and other information, if any, about your repayment capacity
-Form 16 or a copy of the Income Tax Returns for the last 2 years
-For self employed and other IT assessees:
-IT returns for the last 3 years· Receipts of advance tax paid
-Any other information about your repayment capacity

In addition to the above mandatory documents, you are also required to furnish one or more of the following documents wherever applicable:·
-Letter of allotment from the housing board or society
-Copy of the approved plan
-Permission for construction
-Copy of the relative order in the case of conversion of agricultural land. (not required where the house/flat has been constructed by an approved builder)
-In the case of an old existing house, you will need to get a valuation certificate from approved valuers as well as a certificate from a government approved architect /structural engineer regarding the condition of the flat/house as well as its remaining life.

Loan Amount – Upto 60 times the net monthly income will be sanctioned depending upon your age. Usually, your spouse’s income and the expected rental would also be taken into account.

Margin – Your contribution (margin) for the housing loan is as under: 15% for new house/ flat 20% for old house/ flat 20% for repairs and renovation.

Interest – You could either avail the loan at a fixed rate of interest, which stays constant throughout the loan period, or at a floating rate of interest where the interest changes (increases or decreases) depending on changes in the Bank’s Term Lending Rate.

Interest rates

Repayment – In 60 Equated Monthly Instalments.Our repayment terms are amongst the most flexible in the market. Depending on your age and capacity to repay, you could pay back the loan in easy installments.You may prepay at will without attracting any penalty, or pay more than your stipulated monthly installment at any time, depending upon availability of funds with you. However, in case of takeover of loan by other banks/finance companies, prepayment penalty of 2% may be levied.

Security – As per bank’s extant instructions.

Take Over of Loan – If you have already taken a housing loan from any other bank/financial institution and wish to benefit from our low rates of interest, we can take over your existing loan.

In-principle Approval – We also give in-principle approvals based on your income and capacity to repay, to enable you to identify a house/ flat with full confidence.