sbi home lone
There are number of finance companies offering cheap home loans. State Bank Of India is one such government bank, which understands your needs and helps you to purchase the homes of your dreams. A lot of hard work goes into building a home, owning it and then decorating it. State Bank Of India understands your efforts and for that matter they have designed their Home Loan schemes in a way to make the process hassle free and full transparency has been offered.The Unique Features of their Home Loan Schemes are no cap on maximum loan amount for purchase or construction of house or flat. They give an option to club the income of your partner and children to compute eligible loan amount. You can repay the loan up to 70 years of age. The home loan schemes also have free personal accident insurance cover. They charge no administration fee or application fee. Provision for downward refixation of EMI in respect of floating rate borrowers who avail Housing Loans of Rs.5 lacs and above, to avail the benefit of downward revision of interest rate by 1% or more.
They have a package for exclusive benefits like complimentary international ATM- Debit card. They provide complimentary SBI Classic and International Credit Card with waiver of joining and first year's fees. State Bank Of India provides an option for E- Banking. There is a concessional package for car home loan borrowers.
They provide Home Loans for various purposes such as: for the purchase or construction of a new house or flat, purchase of an already built house or flat and if you want to buy a plot of land for construction of house. Finance for home is also provided if you want to undertake extension, repair, renovation, and alteration of an existing house or flat, if you wish to buy furniture, furnishings and other commodities for your home.
HOUSING LOAN SCHEME FOR NRIs/PIOs
The scheme covers both Non-Resident Indians (NRIs) as well as Persons of Indian Origin (PIOs) and is similar to the Bank's normal Housing Loan Scheme except in respect of a few features. The important differentiating features, inter alia, are as under:
Eligibility
NRIs/PIOs over 21 years of age with a steady source of income
• They should have been employed abroad for at least 2 years and presently holding a valid job contract/work permit, with a minimum NMI equivalent to US$500 or a net annual income equivalent to US$ 6000 [or its equivalent in any other currency]
• Indian citizens working abroad on assignments with foreign Governments/ government agencies or International/Regional Agencies like the UNO, IMF, World Bank, working with Merchant Navy etc., Officials of the Central and State Governments and Public Sector Undertakings deputed abroad on temporary assignments or posted to their offices (including Indian Diplomatic Missions) abroad.
Loan Amount
Minimum : Rs. 3.00 lacs
Maximum: For applicants aged
up to 45 yrs: 48 times NMI or 4 times NAI.
45 yrs & above: 36 times NMI / 3 times NAI
[Aggregate loan obligations not to exceed 50% of NMI/NAI]
Income of the spouse/ and from all sources can be clubbed as in the regular HL scheme for residents.
For furnishing & consumer durables
10% of project cost with no ceiling. [to effectively cater to their requirements of luxury houses/ flats
Security
Normally equitable mortgage. However, registered mortgage over property may be obtained in all cases where it is considered necessary by the sanctioning authority, or also where title deeds do not exist.
No financing to NRIs is permissible on creation of pari passu or second charge over the property.
As during the course of purchase of a flat on instalment or construction of house the security will not be free and adequate, additional security by way of lien over credit balances in deposit accounts, guarantee of a third party, resident or non-resident, will be required.
Disbursement
• In respect of purchase of house/flat, disbursement should be made direct to the sellers of flat/house.
• The loan amount shall not be credited to NRE/ NRNR/FCNR account of the borrower.
Disbursement will commence only after the margin money has been fully invested in the property by the borrower and proof submitted to the Bank.
Processing fee
0.25% of loan amount plus service tax
Moratorium
24 months from date of first disbursement or 2 months after completion, whichever is earlier.
Pre-EMI interest
One time irrevocable option to be given to
(a) remit it as & when debited OR
(b) capitalise it within the overall loan eligibility.
Repayment
Prepayment
Repayment by EMI within a max. period of 20 years for those up to 45 yrs & 15 yrs for those aged 45 & above. The loan must be liquidated by age of 60 yrs. or retirement, whichever occurs earlier.
For easy recovery branches should take PDCs drawn on an NRE/NRO/NRNR a/c in India.
Repayment, including all charges, interest etc., by remittances from abroad through normal banking channels or by debit to his/her NRE/FCNR (B) / NRO / NRNR /NRSR accounts in India.
If the house is rented the rental income can also be used for repayment of the loan.
Close relatives of borrower in India can repay the loan.
Prepayment penalty as applicable to SBI HL scheme
Adjusting/ Rephasing remaining term of the loan for NRIs who return to India
• Where NRI returns to India to take up a job :
• Remaining term can be extended by keeping in view his new NMI so that total tenure of the loan including the period which has already passed does not exceed 20 or 15 years depending on whether he was up to or more than 45 years of age, when he obtained the loan.
Documents for NRIs/PIOs:
• Completed loan application
• 3 passport size photos incl. those in application
• Passport copy with page containing visa stamping
• Copy of valid work permit
• Employment contract copy (an English translation duly attested by employer/ consulate/ embassy/our foreign office if it is in any other language)
• Latest salary certificate in original or proof of income in case of self employed/professionals
• Copy of identity card issued by the employer
• Proof of residence (driving license/utility bills etc.)
• Copy of Continuous Discharge Certificate in respect of applicants employed in merchant navy.
• Brief write-up on employment profile for last 10 yrs.
• Brief write-up on the company/institution where employed i.e. its constitution, activity, employee base, sales/net profit (approx.) etc.
• Statement of overseas bank account for the last six months which reflect credit of salary, savings etc.
• Power of Attorney, if applicable, in Bank’s standard format duly stamped and notarized/ attested by Indian Embassy/Consulate
Additional documents for PIOs
• A photocopy of the PIO Card or any of the undernoted documents
• Current passport indicating birth place in India
• Indian Passport, if held earlier
• Parents or Grand parents passport with details therein substantiating his claim of being a PIO
SBI NRI Banking
SBI NRI Banking Services are a specially designed customized set of banking products and services to cater to the global banking needs of the NRI's. India's largest bank - State Bank of India offers various NRI deposit schemes, NRI loans, remittance and other services. The Internet banking facility at SBI called SBI Online has enabled the globally scattered NRIs to access banking services of India's most trusted bank.
SBI NRI accounts include NRE Rupee Accounts, Usual Savings Accounts, Current Account, Fixed Deposits (in foreign currencies like Pound, Sterling, US$, Euro, Canadian Dollar & Australian Dollar), Term Deposits (interest compounded quarterly and paid out quarterly), NRO Accounts, and Foreign Currency NRI (FCNR) Accounts. You can download SBI NRI account opening form from the SBI website.
SBI NRI loans include car loans and home loans. NRI car loans are offered to a borrower who is an Indian resident with a relative NRI as the sponsor and guarantor. SBI NRI loan for vehicles are available for purchase of passenger cars, MUVs or SUVs. State Bank of India NRI home loans are available for purchase of a residential property, construction or renovation of an existing property and loans for purchase of furnishings and other consumer durables. A loan of minimum Rs. 3 lakhs to a maximum of Rs. 20 lakhs are available in a hybrid suite of products including SBI Maxgain home loans, flexi home loans, realty home loans and freedom home loans.
Besides the usual savings and finance products by SBI, NRI banking services also include investment and tax benefit schemes customized for the NRIs. Special banking facilities are also provided for the returning Indians. Freedom to maintain the assets acquired or inherited abroad, maintaining and operating foreign currency accounts with foreign banks, balance transfers from NRI/ FCNR accounts to RFC accounts (in US $).
• Who is a Non Resident Indian (NRI)?
NRIs (who are Indian Passport holders): An Indian citizen or a foreign citizen of Indian origin who stays abroad for employment/carrying on business or vocation or under circumstances indicating an intention for an uncertain duration of stay abroad is a NON-RESIDENT INDIAN.
(Those who stay abroad on business visit, medical treatment, or such other purposes which do not indicate an intention to stay there for an indefinite period will not be considered as NRIs).
· Who is a Person of Indian Origin (PIO)?
Persons of Indian Origin (PIOs) (holding a foreign passport):
Foreign Citizen (not being a citizen of Pakistan, Bangladesh, Bhutan, Afghanistan Sri Lanka, China, Iran or Nepal) who has:
• at any time, held an Indian passport &
• either of whose father or whose paternal grandfather was a citizen of India, by virtue of the Constitution of India or the Citizenship Act 1955 (57 of 1955).
Rental income
· Can expected rental income from the property being purchased and proposed to be rented out be added while computing eligible loan?
Yes. As many NRIs who stay abroad with their families will be letting out the house/flat, the expected rental income from the proposed property may be added to NMI/NAI to determine the eligible loan amount if the applicant gives an undertaking to credit the rental income to HL a/c.
SBI Realty
· What is the maximum loan amount & margin for purchase of plot for house construction?
The maximum amount is 20 lacs & margin is 15% in line with SBI Realty.
Repayment
• Are close relatives of borrowers in India permitted to repay the loan?
As a further measure of liberalisation, it has been decided by Reserve Bank of India, vide their. AP (DIR Series) Circular No.93 dated the 25th May 2004, to allow the close relatives (as defined under Section 6 of the Companies Act, 1956) of the borrower in India to repay the installment of such loans, interest and other charges, if any, through their bank account directly to the borrower’s NRI Housing Loan account with the Authorised Dealer (i.e. the Bank).
[CC Circular No. PB/5A/9 dt.15.06.2004]
Repatriation
• Is repatriation of sale proceeds of the residential accommodation purchased by NRIs/PIOs through housing loans permitted?
It will be in order for ADs to allow repatriation of sale proceeds of the residential accommodation purchased by NRIs/PIOs out of funds raised by them by way of loans from ADs /Housing Finance institutions to the extent of such loan/s repaid by them out of foreign inward remittances received through normal banking channel or by debit to their NRE/FCNR accounts.
Takeovers
· Is takeover of loans from other banks/ HFIs permitted?
Yes. As there is no restrictive covenant in this regard by RBI, takeover is permitted subject to completion of due diligence.
MARKETING TIPS
· Thrust on NRIs who are HNIs, professionals etc.
· Mailers to existing NRI customers highlighting the enhanced features.
· Mailers to NRIs from database maintained by Non-Resident Associations.
· Special promotional campaigns and property fairs with exclusive counters to market ‘SBI-NRI’ Housing Loans.
· Establish tie-ups with reputed builders who are promoting residential projects / townships targetted at NRIs and maintain close rapport with their overseas offices, if any.
· Maintaining close liaison with our network of overseas offices with thrust on Exchange Companies in Middle East countries to effectively market the scheme among their customers.
· Optimally tap the potential for marketing innovative and customer friendly schemes like ‘SBI-Realty’ / ‘SBI-Flexi’ / ‘SBI-Maxgain’ Housing Loans including the scope to offer customized products which ideally meet their requirements i.e., a combination of the above loans.
· Discretion to quote improvement in pricing may be exercised judiciously to give thrust to High Value / Big Ticket Loans.
Reference: CC Book of Instructions, Vol- III, Part- IV.
CC Circular No. PBBU/HL/AX/1 dt. 01.04.2005
CC Circular No. PBBU/HL/NP/3 dt. 17.08.2005
SBI Personal Loans
SBI Personal Loans also known as State Bank of India personal finance schemes, aim to provide the necessary financial assistance to as many people as possible to help them realize their dreams or come out of situations of financial need. State Bank of India being India's largest bank is a trusted name and the SBI personal loan rate of interest are kept at the most competitive level to make a personal loan as approachable as possible.
The most popular SBI personal loans include housing loans, car loans, education loan, loans against property, shares or debentures, reverse mortgage loans and more.
State Bank of India Housing Loan or SBI Home Loan is available in complete transparency and at no hidden costs. The interest rates are charged on daily reducing basis.
SBI Car Loans offer a lucrative deal of low interest rates, easy repayment facilities and inclusion of all additional charges like vehicle registration, insurance, one-time road tax and car accessories. State Bank of India offers car loans for purchase of all kinds of personal use and commercial vehicles.
State Bank of India offers Education Loan to Indian nationals for pursuing higher studies within the country or abroad. The SBI education loan covers the travel expenses, tuition fees, examination fees, costs of books and other course material and stationery, refundable caution deposits, expenses for purchase of computers necessary for the course and also a two-wheeler conveyance up to Rs. 50, 000 in costs along with any other major expenses mandatory to the course.
SBI Online
SBI Online has been an initiative of the State Bank of India to offer the Banking Services online. SBI Online is a form of Internet Banking Service that enables us to avail our accounts via the internet and even transact and invest in SBI Mutual Funds. The State Bank of India, the largest Bank in India, in terms of Branches and Infrastructure, introduced the SBI Online method in order to facilitate the
personal as well corporate Banking Services in a quicker as well as convenient manner.SBI Online offers information regarding the member's profile and details like the Account Summary, Account Balance, etc. In fact, it is almost like a virtual trip to your SBI Branch. With a secured login system, you can avail the Bank statement and then take a print out, at the same time, transferring Funds to any other SBI Account or an Account with any other Branch in India or Abroad is very easy and convenient.
To ensure safety and confidentiality of the critical information regarding our Account or SBI Cards like the SBI Credit Card or Debit Card, SBI Online has the VeriSign Certification that acknowledges the security and safety parameters of the banking portal of The State Bank of India.
The SBI Internet Banking is one of its kind is many regards. The login and transaction on the website is so easy that even first-time users can access their account and perform the transaction functions with ease. The value added services enable us to make the payments of our Telephone Bills, Electricity Bills etc online and this reflects the reach of The State Bank of India to make our daily chores easy.
The State Bank of India-SBI Internet Banking offers information on SBI Branch Code, SBI NRI Services, Bank Credit Cards and SBI Mutual Funds India. Indiahousing.com appreciates the online banking Services offered by The State Bank of India and provides the following website link for further reference.
SBI Credit Card
SBI Credit Card or State Bank of India Credit Card offers you exclusive deals and convenience of cashless shopping with complete online payments and balance transfer solutions and all this come with redeemable reward points system. The benefits and features of State Bank of India credit cards do not end here.
The available SBI Credit Cards are:
SBI Silver, Gold & Platinum Card and SBI partnership cards that include Go Air, Hero Honda, LG, SBI Advantage Card, SBI Card For Doctors, Employee Card, Lifestyle Card, Railway Card, Vishal Mega Mart Card, Social Card, UBI Cards, SpiceJet SBI Card and more.
The exclusive offers on the above State Bank of India Credit Cards are free insurance covers, low interest on balance transfers, easy bill payments solutions, 0% surcharge across all petrol pumps, flexible payment solutions, special discount offers, Teledraft facility, special reward points system and many more
The SBI credit cards online services include online account operations that include online balance transfer, checking account status, generating e-statement, 24-hour customer service, and SBI credit card login online to get details of your past transactions. These are just some of the benefits you derive from your State Bank of India credit card.
You get cashless shopping facility and reward points for every purchase you make. On accumulating a substantial amount of reward points, you can redeem the points for cash or gifts benefits. You can dial up the All India Toll Free Number for SBI Customer Care Service to enquire about the ongoing interest rates, and details of the process of how to apply for SBI credit card online. State Bank provides various payment channels for the credit cards bill payments. These include online bill payment services called Paynet and e-Pay, drop boxes at all SBI branches and ATMs, VMT (Visa Money Transfer), cash payments at easy bill merchant outlets, or ECS that enables debit from your SBI savings or current account.
SBI Blue Chip Mutual Fund
SBI Blue Chip Mutual Fund was launched on 23rd December 2005 with the objective of providing long-term capital growth with the help of management of investments in diverse equity stocks of companies having at least a market capitalization equal to the least capitalization stock in BSE 100 Index. The SBI Blue Chip Mutual Fund NFO was open from 23rd December 2005 to 20th January 2006 and it reopens for sale and repurchase continuously from 17th February 2006.
SBI Blue Chip Fund offers dividend and growth options with reinvestment and payout facilities. The minimum investment limit starts at Rs. 5000 and further in multiples of Rs. 1000. The SBI Blue Chip Mutual Funds Dividends earned are completely tax-free as are the long-term capital gains. Whereas a 10% tax plus applicable surcharge would be levied on short-term capital gains. Along with all this SBI Blue Chip Mutual Fund also offers systematic investment plan (SIP) during the NFO. The asset allocation pattern under SBI Blue Chip Fund for growth is around 70 - 100% on equities and equity-related instruments (inclusive of derivatives) that are high on risk and around 0 - 30% on debt and money market instruments that prove to be relatively less on risk.
For further information on the entry or exit load during switching of equity schemes and the blue chip stock or the risk factors involved in SBI Blue Chip Mutual Fund investment, you can directly refer to their website mentioned below. We also give you information on SBI Mutual Funds in India and other banking products and services from State Bank of India browse through our dedicated pages on each.
SBI Online Trading
SBI Online Trading Service is rendered through eZ-trade@sbi in alliance with Motilal Oswal Securities Limited. Currently applicable for only Indian Residents' use, eZ-trade SBI is a contemporary online etrading platform that offers online investments and a paper free trading experience.
For your convenience, State Bank of India also provides a 3-in-1 SBI account that is amalgamation of savings, demat and online trading account. As an introductory offer, SBI India is offering the account opening for free. The bank employs well-trained and experienced experts who guide you through your online stock market trading or securities trading and operating your SBI online account.
To access to online trading facility of SBI, all you have to do is get an online trading account with SBI Bank and login to eZ-trade@sbi.com. You can get instant and automated payouts of funds and securities for trading in equity, mutual funds and IPOs. Besides this on the website you find timely updates on market, pivot points and derivatives diary.
The online trading system is secured with 128-bit encryption based SSL (Secure Socket Layers), thereby providing the highest possible security to all your online stocks and securities transactions.
For further information refer to their website mentioned below. For information on State Bank of India and other SBI Online Banking services refer to our subsequent pages on each.
Check off facility: GUIDELINES
The concept of Check-off is applicable only in the case of salaried persons. Check-off to be acceptable in the first place, is to be obtained only from:-
i) Central/State Government Undertakings paying salaries regularly and in good health.
ii) Reputed Private and Public Limited Companies.
iii) Well known institutions like Universities, Colleges, Hospitals etc.
iv) Select partnership firms e.g. Arthur & Anderson.
Check-off has been hitherto interpreted as the arrangement where the salary-disbursing officer undertakes to deduct loan instalments from the salary of the borrower and remits the same to the Bank.
Check-off facility is generally taken to mean the following:
i) Irrevocable authority from the borrowers for deducting amount of instalment from salary;
ii) Irrevocable authority for making payment out of any amount payable to the employee e.g. terminal benefits in case of his/her retirement, resignation, discontinuance of service or death.
iii) Obtention of an undertaking to obtain a NOC from the Bank before clearing the dues of borrowers on transfer, resignation or retirement.
Broadened Definition:
Corporate Centre has, however, since broadened the definition of check-off facility for good corporates and reputed institutions. Check-off may be taken to include situations where, in the case of good corporates and reputed institutions
i) The employer pays the borrower's salary through the borrower’s savings / current account with our Bank,
ii) The borrower gives an Irrevocable Standing Instruction for recovery of the loan amount from his aforesaid account. (In such a case the Standing Instruction should be synchronised with the date of credit of salary in the borrower's salary account), and the same is recorded at the branch
iii) The employer undertakes to inform our Bank if and when there is a severance due to the borrower’s transfer, retirement etc.
Papers to be obtained for check off facility [on the Bank's standard format]:
• Irrevocable letter of authority from borrower.
• Letter from employer
• Letter from employer where applicant himself is the drawing and disbursing officer.
Check off facility letter should be signed by a competent authority.
SBI EDUCATION LOAN SCHEME [Since renamed SBI STUDENT LOAN. Please click here to view changes
CC circular No.PB/4A/21 dt. 4.11.2004.
Purpose
To extend financial assistance to deserving /meritorious students for pursuing higher education in India and abroad.
Eligible Courses :
Studies in India
· Graduation / Post graduation courses and Ph.D./ Professional Courses
· Diploma / Computer Courses / evening courses offered by approved Institutes / Universities.
The General Manager concerned may approve institutions and the specific courses for which loans may be granted , for their area of operations , depending on future prospects/ recognition by user Institutions.
Studies abroad
· Graduation: For job oriented professional/Technical courses offered by reputed universities.
· Post Graduation: MCA, MBA, MS, etc.
· Courses conducted by CIMA-London*, CPA in USA** etc.
*Chartered Institute of Management Accountants)
** (Certified Public Accountant).
Student
eligibility
· Should be an Indian National
· Secured admission to professional/technical courses through Entrance Test / Selection process*
· Secured admission to foreign university/Institutions.**
*students who are required to deposit part of the admission fee on the day they go for counselling and
**students who are to deposit part of the fee before admission is formally granted may also apply [subject to conditions]
Eligible
expenses
· Fee payable to college /school /hostel
· Examination /Library/Laboratory fee.
· Purchase of books /equipments/instruments/uniforms / maintenance costs.
· Caution deposit / building fund / refundable deposit supported by Institution bills/ receipts.
· Travel expenses/passage money for studies abroad
· Purchase of computers, essential for completion of course.
· Any other expenses required to complete the course like study tours, project work, thesis, etc.
Boarding & lodging expenses, if own arrangements are made*
Cost of two wheeler, premium for edu-shield, Capitation fee*
*subject to certain conditions.
Type of loan
Term loan
Quantum of
finance
Amount financed is need based subject to the parent’s / student’s repayment capacity and the following ceilings :
For studies in India: Max. Rs.10.00 lacs
For studies abroad: Max. Rs. 20.00 lacs
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