HOME LOAN

Home Loan is offered to individuals who wish to purchase or construct a house. The property is
mortgaged to the lender as a security till the repayment of the loan. The bank or financial
institution will hold the title or deed to the property till the loan has been paid back with the
interest due for it.
What are the different types1?

Through a Home Loan, one can purchase or construct a new house/ apartment;
A Home Improvement loan is offered to those who wish to renovate their houses;
A Home Extension loan is for consumers planning to add extra space to their house such
as a new room or a new wing;
A Loan against Property is offered for a individuals seeking loan against an already
existing property;
A Land Purchase Loan is provided to consumers buying land as an investment, maybe to
build a house later on and a Balance transfer loan is basically a home loan to pay off an
existing home loan as this enables you to avail a loan with a lower interest rate.

What is the maximum amount that can be borrowed?

The amount that can be financed typically depends on the status of the borrower (resident/nonresident), type of home loan (renovation, property purchase, property extension) and the
financial institute. It is generally offered for up to 80-85% of the cost of the property.
What do lenders look for?
Lenders look for personal details such as a good credit history, annual and monthly income,
existing EMIs of the consumer, a clean title to the house/ property and the location of the house
before approving a home loan application.
What are the tax benefits on Home Loan?2
There are certain tax benefits available on your Home Loan. Budget 2016 Update: Additional
Deduction of Rs. 50,000 under Section 80EE has been allowed to first time home
buyers,maximum tax deduction allowed under Section 80C is Rs. 1,50,000.

https://www.cibil.com/home-loan

2 http://www.charteredclub.com/tax-benefit-on-home-loan/

STATE BANK OF INDIA:

Brief HistoryState Bank of India (SBI), with a 200 year history, is the largest commercial bank in India in
terms of assets, deposits, profits, branches, customers and employees. The SBI group consists of
SBI and five associate banks. The group has an extensive network, with over 20000 plus
branches in India and another 186 offices in 34 countries across the world. The group commands
over 23% share of the domestic Indian banking market.
SBI Home Loans:

"The Most Preferred Home Loan Provider" voted in Awaaz Consumer Awards along with the
Most Preferred Bank Award in a survey conducted by TV 18 in association with AC NielsenORG Marg in 21 cities across India..SBI Home Loans come to customer on the solid foundation
of trust and transparency built in the tradition of State Bank of India.
Best Practices followed in SBI mentioned below will tell customer why it makes sense to do
business with State Bank of India.
SBI Home Loans Unique Advantage
Low Processing Charges
Package of exclusive benefits.
Low interest rates. Further, it charge interest on a daily reducing balance!!
No hidden costs or administrative charges.
No prepayment penalties. Reduce customer interest burden and optimally utilize there
surplus funds by prepaying the loan.
Over 15,969 branches nationwide, customer can get there Home Loan account parked at
a branch nearest to your present or proposed residence.
VARIOUS HOME LOAN PRODUCT OFFERED BY SBI
SBI FLEXIPAY HOME LOAN
Higher Home Loan eligibility with flexible repayment option.

Upto 1.2 times higher loan eligibility compared to loan eligibility under normal Home
Loan schemes available to working professionals / executives.Loan amount, however, must be
Rs.20 Lacs or higher.
Salaried applicants with minimum 2 year experience and aged between 21- 45 years will
be eligible to avail of SBI FlexiPay Home Loan.

To neutralize the impact of such additional loan on monthly EMIs, customers have the
option of paying only interest during the moratorium (pre-EMI) period, and thereafter, pay
moderated EMIs. The EMIs will be stepped-up during the subsequent years.
Option of selecting moratorium of upto 36 - 60 months. Only interest to be repaid during
the selected moratorium period.
Longer repayment of 25 to 30 years is available under the scheme. However, customers
will be free to make prepayments towards their Home Loan loan without any pre-payment
penalty.
SBI MAXGAIN

HOME LOAN AS AN OVERDRAFT

An innovative and customer-friendly product enabling the customers to earn optimal

yield on their savings by reducing interest burden on Home Loans, with no extra cost.

The loan is sanctioned as an Overdraft with added flexibility to operate the Home Loan
Account like SB or Current Account. Bank also provides Cheque Book/Net Banking facility for
the purpose.

The product enables customers to park their surplus funds/savings in SBI Maxgain(with
an option to withdraw whenever required), especially in the wake of low yields on other
Deposit/Investment products.
Loan Amount
Minimum Loan Amount : Rs.20 lacs
Maximum Loan Amount : No Cap
NRI HOME LOANS:
HOME LOANS TO NON RESIDENT INDIANS (Nris) & PERSONS OF INDIAN
ORIGIN (Pios)
Eligibility

Non Resident Indians (NRIs) or Persons of Indian Origin(PIOs)

The applicants should have a regular source of income.

Minimum employment tenure in India/Abroad should not be less than 2 years.

Loan Amount
Minimum Loan Amount: Rs. 3 lacs
Maximum Loan Amount: No upper cap.
SBI REALTY
Home Loans For Purchase Of Plot For Construction Of A Dwelling Unit
SBI Realty provides an opportunity to the customer to purchase a plot for construction of house.

The construction of house should commence within 2 years from the date of availment of
SBI Realty Loan.

Customers are also eligible to avail another Home Loan for construction of house on the
plot financed under the SBI Realty with the benefit of running both the loans concurrently.
Loan Amount : Maximum Loan Amount: Rs.10 crores
Repayment Period : Upto 15 years
SBI PAL

Pre-Approved Home Loan

The SBI PAL provides sanction of Home Loan limits to the customers before finalization
of the property which enables them to negotiate with the Builder/Seller confidently.
The loan eligibility will be assessed on the basis of income details of the applicant.
Non-refundable processing fee as applicable to the Home Loan will be collected at the
time of sanction.
Validity Period
Pre-approved loan arrangement letter (PLAL) will be valid for a period of 4 months.
Property papers will be required to be submitted by the borrower within the validity of PLAL.
Processing fee will not be levied again.
Loan Amount
Pre-approved loan arrangement letter (PLAL) will carry the eligible loan amount
calculated on the basis of prevailing interest rates
Minimum Loan amount: Rs.10 Lacs.
SBI TRIBAL PLUS

Special Home Loan Scheme For Hilly/Tribal Areas

' SBI Tribal Plus' is a Special Home Loan Scheme designed for Hill/Tribal areas (where
mortgage of the property is not possible) for extending financial assistance to individuals.

Loan is sanctioned for Purchase or construction of a new house / flat (without mortgage
of land).

Purchase of an existing (old) house / flat which is not more than 10 years old.

Repair /Renovation/extension of an existing house or flat.

Loan Amount
Minimum Loan Amount: Nil
Maximum Loan Amount: Rs. 10 lacs
Repayment Period
Maximum repayment tenure: 15 years
GRAM NIWAS

HOME LOANS IN RURAL AREAS

Scheme covers all Rural and Semi-urban centres having population upto 50,000 as per
2001 census.

Home Loans under Gram Niwas Scheme are sanctioned for purchase/
construction/repair and renovation of house and purchase of plot for construction of a
house/shed etc.
Loan Amount
Minimum Loan Amount: Nil
Maximum Loan Amount: Rs. 5 lacs
Repayment Period
Maximum repayment period :15 years
SAHYOG NIWAS

Home Loans To Self Help Groups In Rural Areas

The Sahyog Niwas Scheme provides Home Loan to Self help groups, having good payment
record of 2 years, for on lending to their members for:
Purchase or construction of a house exclusively or including the housing needs of
activities carried by them (Dairy shed, tailoring shed/shop, grocery stores etc.)
Renovation or repair of an existing house / shed
Purchase of a plot for the construction of house
Extension of existing house / work space to existing house / shed.
Loan Amount
Home Loan amount under Sahyog Niwas Scheme is restricted to 10 times of the
saving corpus of SHG subject to a maximum amount of Rs. 50,000/ per member.
HER GHAR
Home Loan For Women At Reduced Interest Rates
@ 9.40% (EMI RS 834/ lac for a period of 30 years) subject to the following two conditions
1. Woman should be the sole applicant or one of the co-applicants for Home Loan, and also
2. The woman should be the sole owner or one of the co-owners of the property proposed to be
financed by the Bank
RELATED HOME LOAN PRODUCTS
SBI TOP UP HOME LOAN

Eligibility

All Home Loans with a satisfactory repayment track of at least one year.

Valid mortgage should have been created in favour of the Bank.

Loan Amount
Minimum Loan Amount: Rs. 2 lacs
Maximum Loan Amount: Rs. 5 crores.
Processing Fee
Processing Fee 0.35% of Loan Amount subject to a minimum of Rs 2000/- and Maximum of Rs
10,000/Permissible Loan amount is calculated at

80% of present market value of the house property less present outstanding in the Home
Loan account for Loan amount up to Rs 75 Lacs and

75% of present market value of the house property less present outstanding in the Home
Loan account for Loan amount above Rs 75 Lacs
Interest Rate (w.e.f. 01st May, 2016)
Top-up loan amount

Term Loan

Upto Rs. 25 lacs

0.35% above 1 Year MCLR, effective rate

9.50%
Above Rs. 25 lacs & Upto Rs. 2 0.80% above1 Year MCLR, effective rate
crores
09.95%
Above Rs. 2 crs & upto Rs. 5 2.05% above1 Year MCLR, effective rate
crores
11.20%
Top-up loan amount
Overdraft
Above Rs. 20 lacs & Upto Rs. 2 1.80% above 1 Year MCLR, effective rate
crores
10.95 %

SBI REVERSE MORTGAGE LOAN

Loan For The welfare Of Senior Citizens In India
House-owning Senior Citizens having inadequate income can avail this loan to meet their
financial needs for renovation/repairs to house, medical & other personal uses.

No compulsion for the borrower to repay the loan amount during his or her lifetime or till
such time he or she continues to stay in the house.

Borrowers have the options to prepay the loan at any time without any pre-payment
penalty.
Processing Fee

Processing Fee0.50% of the Loan Amount with a Minimum of Rs 500/- and Maximum of Rs
10,000/Interest Rate

2.75% above the one year MCLR, present effective rate being 11.90% p.a. (Fixed)
subject to reset every year for Public
Disbursement

Either in Monthly/Quarterly payments or 50% of the sanctioned limit in lump-sum and

the remaining in periodic payments.
FEATURES
Eligibility:
Minimum age: 18 years as on the date of sanction
Maximum age: 70 years. i.e. the age by which the loan should be fully repaid, subject to
availability of sufficient, regular and continuous source of income for servicing the loan
repayment.
Loan Amount:
Actual loan amount will be determined taking into consideration such factors as applicant's
income and repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc. To
enhance loan eligibility you have option to add:
1) Income of your spouse/ your son/ daughter living with you, provided they have a steady
income and his/ her salary account is maintained with SBI.
2) Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to
be rented out.
3) Depreciation, subject to some conditions.
4) Regular income from all sources.
Security:

Equitable mortgage of the property

Margin/ LTV Ratio:
Individual Home Loan Amount

Margin (Min.)(%)

Upto Rs. 30 Lacs

10
Above Rs. 30 Lacs. and upto Rs. 75 lacs
20
Above Rs. 75 lacs
25
Interest rates:
HOME LOANS - INTEREST RATES With effect from 01.05.2016

LTV Ratio (%)

90
80
75

(MCLR: 9.15%)
Borrowers' Home Loan

EMI

Maxgain

Maxgain

CRE

category

interest rate,
per Lac
irrespective of for 30
loan limit
year
Tenor

above Rs.
20 lacs &
upto Rs. 1
crore

above Rs. 1 Maxgain,

crore
irrespective of
loan limit

Women

20 bps above Rs. 830

the MCLR i.e.
9.35% p.a

Others

25 bps above Rs. 834

the MCLR i.e.
9.40% p.a.

30
bps
above
the
MCLR i.e.
9.45% p.a.
35
bps
above
the
MCLR i.e.
9.50% p.a.

55
bps
above the
MCLR i.e.
9.70% p.a.
60
bps
above the
MCLR i.e.
9.75% p.a.

75 bps above
the MCLR i.e.
9.90% p.a.
80 bps above
the MCLR i.e.
09.95% p.a

Woman should be the sole applicant or one of the co-applicants for Home Loan, and also
The woman should be the sole owner or one of the co-owners of the property proposed to
be financed by the Bank
FEES

Processing Fee
0 % Processing Fee for Takeover of Home Loans proposals for the period from 1 st June,
2016 to 30th September, 2016 (Balance Transfer)
50 % waiver of Processing Fee on SBI approved Projects for the period from 1 st June,
2016 to 30th September, 2016
The processing fee structure for proposals other than above is as under :
0.35% of the loan amount plus applicable service tax.
Minimum: Rs. 2,000/- plus applicable service tax, and.
Maximum: Rs. 10,000/- plus applicable service tax.
REPAYMENT
Repayment period: Maximum 30 years (or) Up to the age of 70 years (the age by which the
loan should be fully repaid) of the borrower, whichever is early.
Moratorium period (Repayment holiday): The moratorium period is included within the
maximum repayment period
FEDERAL BANK

Brief HistoryFederal Bank, earlier known as Travancore Federal Bank, was incorporated in 1931. The bank is
the fourth largest bank in India in terms of capital base and can easily boast of a Capital
Adequacy Ratio3 of 17.23%, one of the highest in the industry. The Federal Bank Limited is a
major Indian commercial bank in the private sector, headquartered at Aluva, Kochi, Kerala. As
on 19 October 2015, Federal Bank has 1251 branches spread across 24 states and
1526 ATMs across the country. Its balance-sheet stood at Rs 1.03 trillion as of end March 20144.
Federal Housing Loan
Your dream home is never far away! Get hassle free home loans from Federal Bank to turn your
dream home into reality.
We assist you to realize your dream home. Avail your Housing Loan from us at competitive
interest rates.
The Federal Housing Loan scheme assists borrowers for construction of house, acquisition of
land & construction of house, repairs / renovation / remodeling / extension of house,
reimbursement of debt incurred for construction / purchase / furnishing / beautification /
purchase of flat / villa / house plots / takeover of housing loans / supplementary housing loan to
employees of well-run companies / purchase of house plot for subsequent construction of house
etc.
Key features

Speedy loan approval

Get loan up to 85% of project cost

Minimal paperwork

Loan amount up to Rs.1500 Lakhs

Longer repayment period

Loan amount up to Rs. 1500 Lakhs with a margin of 15 20%
Longer repayment period up to 30 Years
Repayment can be done as easy EMIs
Security for the loan will be Mortgage of land and building.

3 http://profit.ndtv.com/stock/the-federal-bank-ltd_federalbnk/reports
4 https://en.wikipedia.org/wiki/Federal_Bank

Get Your Dream Home

Federal Bank can help you finance up to 80% to 85% of property value
Use Fed Housing Loans for construction or repairs!
Federal Housing Loan available for new construction, renovations and repairs.

Repayment of the loan is made as Equated Monthly Installments (EMI).

You can use any one of the ways to repay the loan:
Cheques
Standing instructions at your branch
FedNet - Internet Banking
Automated Payment through ECS
Mobile Banking
Purchase of House Plots

Are you having a residential plot of land in mind to buy? Realise your wishlist with our loan for
purchasing house plots.
Key features

Speedy loan approval

Get loan up to 60% of land

Minimal documentation

Loan amount up to Rs.25 Lakhs

Loan is provided for purchasing house plots for subsequent construction of house.
Loan amount up to Rs. 25 Lakhs with a margin of 40%(of cost of land as shown in sale deed +
Stamp duty + Registration charges)
Repayment period of the loan is 60 Months
Repayment can be done as easy EMIs.
Security for the loan will be House plot to be purchased and Interim Security for 100% of the
loan amount.
Repayment of the loan is made as Equated Monthly Installments (EMI).
You can use any one of the ways to repay the loan:

Cheques

Standing instructions at your branch

FedNet - Internet Banking

Automated Payment through ECS

Mobile Banking
Property Power

Now your Property can take care of your Personal, Business and family's needs. Your dream of
building the business to new heights, consolidating debts, education of your children or even
arranging funds for a marriage in the family can now be fulfilled with Property Power. With this
facility, unleash the power you never knew you had!
Key features

Quick loan processing

Longer repayment period- up to 15 years

Lower Interest Rates & EMIs

Loan Amount up to Rs.5 Crore

Loan can be availed as overdraft as well as Term Loan

Minimal Paperwork

Surrogate Scheme for Self Employed Category available

Balance Transfer Programs with additional finance

Property Power is offered against residential premises, a plot of land or commercial properties as
per your convenience.
How Much Can You Borrow?

Up to 50% of the security value, maximum Rs.5 Cr

Security:
Mortgage of immovable property

Property in the name of close relatives also will be accepted

For granting Property Power to PIOs, the property shall be in their own names.

Insurance:
Insurance options for Property Power Loan at attractive Premiums
Amount for insurance can be included as a part of our loan component subject to
satisfactory repayment capacity & availability of required security margin as per norms.

Service Charges applicable

Processing Charges /Administrative Fee - 1% of the sanctioned limit (Any charge which
may have to be incurred by the Bank over and above the Administrative Fee collected, with
respect to processing/ sanction of the loan, will have to be met by the borrower).
Penalty for early closure- 2% of the balance outstanding or DP whichever is higher.
House Warming Loan
Federal Bank has yet another attractive loan scheme for you- House Warming Loan - a special
personal loan scheme to our Home loan customers (both existing & new) Viz. House Warming
Loan' for meeting house warming and other related expenses.

The key features are :

Personal Loan without Security

Eligibility on acquisition or completion of the house / flat

Attractive Interest Rate @ Housing Loan rate + 2%

No Lock in period

Repayment tenor up to 60 months

Collateral Security
For Resident customers - Nil.
For NRI customers - Additional charge on the existing housing loan security is required.
Co-obligants

All parties to the existing housing loan limit shall join the loan documents. If the borrower gets
married subsequent to availing HL, spouse shall join as a party to the Loan documents, in
addition to all parties to existing housing loan.

Aashray Loan

The Federal Aashray Scheme aims to provide an additional source of income for senior citizens
of India, who own a self acquired property in India, for any personal use other than speculative
trading and/or business.

Key features:
Loan Amount

According to the value of the security provided

Period

10 to 15 years
Monthly Payout

Rs 2,000/- to Rs 25,000/Security

Equitable Mortgage of the house property against which the loan is considered, value of
which should be at least 60% of qualifying loan amount
The residual life of the property should be at least 20 years
Margin on Security

10% to 25%

Option to pre-pay the loan by giving 6 month's notice

Option for settlement by legal heirs is also available .

Processing & Admin fee: 0.50% (subject to a minimum of Rs. 1000/- and a maximum of
Rs. 5,000/-)
Interest Reset every five years
Speedy Processing & Approval
Easy Documentation

Comparison of home loan products:

Features

Federal Housing
loan

SBI Home Loan.

Base Rate

9.63

9.6

Margin

15-20%

15-25 %

Maximum
Loan amount

15 cr

20cr

Maximum loan
period

30 years

30 years

Mortgage

Required

Required

2. Purchase of house plots

Features

Federal Bank

SBI

Max. Loan Amount

25L

10 cr

Margin

40%

15%

Maximum Period

5 years

15 years

Mortgage

Required

Required

Maximum Land

2 acres

No restriction

3.Senoir Citizen.

Features

Federal Bank

Sbi

Monthly Payout

Rs 2,000/- to Rs 25,000/-

Rs 675-Rs.22,500

Tenure

10 to 15 years

10 to 15 years

Processing & Admin fee

0.50%(Min:1000,max:5000)

.50% Minimum of Rs 500/- and

Maximum of Rs 10,000/-

Pre-Payment

Option to pre-pay the loan

by giving 6 month's notice

option to prepay the loan at

any time during the loan tenor.

Margin

10-25%

10%