SBI Home Loan Process Explained in Steps Jerinjoseph

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SBI H e Loan Pr ocess Expl i ed i St eps j r i j seph om an n e no
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SBI Home Loan Process Explained in Steps

Posted: February 2, 2011 in Home Loan Process Tags: loan, sbi, sbi home loan 68 Steps Reference Output Document Cost
1.Collecting the Property related Documents:Go to the builder and get all the property related legal documentsI have got Legal opinion and Share of agreement and Sanctioned Site plan from my builder.
NA
Booking Receipt along with the copy of the cheque.
Depends 0
2.Legal Opinion: Go to an Advocate who is in the SBI Panel with the documents in step 1 to get it verified. For the advocate to give the final legal opinion he needs to see the Sales Agreement & Construction Agreement and he needs a photostat copy of it.Normally if its a builder share following documents needs to be collected from
e no j r i j seph. w dpr ess. com / 2011/ 02/ 02/ sbi hom e- l an- pr ocess- expl i ed- i - st eps/ or o an n
Adinath Narde & revathy AssocaiatesSt Marks Road bangalore (Near
Legal opinion
1500
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the builder :1. Encumbrance certificate till current date (from some 35 years advocate may ask)2. Tax Paid receipt till dateLawyer is going to make you run for multiple documents, so the maximum delay is expected at this step, once this step is done half part is done 3. Property Valuation:Once the Legal valuation is done go to a property Valuator who is in the SBI Panel with the sales agreement.He will valuate the property and will give a letter. 4. E-stamping: SBI mandatess the Sales agreement and Construction agreement to be estamped/Franked. Regarding whats the value to which e-stamp ask the concerned bank.Normally for a ongoing construction flat, there will be 2 Agreements a)sales Agreement and b) Construction AgreementIn my case, the bank asked me to e-stamp the Sales agreement for 1 % of the value shown there or for 20,000 which ever is minimum and they asked me to frank the Construction agreement for 200 Ruppees.Estamping and franking are actually the same, estamping is the new technology where as franking is the old one where we stamp it,
to St.Marks Hotel and Bishop cotton girls school)
NA
Valuator statement
1500
14,911+200 Remarks: estamping mode of payment is via cashFranking if above 1000 need to take a DD in the name of the sub-registrar, locality
Domlur Subregistrar office (can do both estamping and franking)
e-stamp and franking on the sales agreement
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Franking can be done only at register office where as e-stamping can be done at post offices, Syndicate banks, Selected registrar offices etc Note: Make sure you, your wife and builder sign on the e-stamp which you purchase. 5. Submitting the Application: Once we got the Valuator statement and Legal opinion, now go to the SBI with the filled in application forms along with the required documents for loan application. Also attach the legal opinion and the Valuator statement.Note: Its always good to go for a interiors loan (max up to 3 lkhs) along with the hoam loan which will save you another 7000 rs for the processing fee. For the interiors you need to get a quote from an interior designer and get it valuator sanctioned. For me I went with valuator only 6. Waiting period: Now its time for the waiting period. The waiting period may vary person to person. Normally in the special home loan branch, it can be as fast as 3 days. For me unfortunately it took 23 days as there was an audit going on in the bank. periodically call them to make the process much faster. Also make sure they inspect the property if you
SBI Special Home Loan branch, JayanagarInteriors valuation: C S Vyasaraja
Application formValuator Statement
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Nil
Nil
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are in a hurry to get the loan coz unless and until they inspect it, they wont disburse the money. 7. Documentation:Once the loan is sanctioned, Bank people will give you a call and now we need to plan for the documentationFor the documentation we need to get the following documents1. 2*400 rupees worth e-stamp1st party: Loan applicant 2nd party: SBI purpose: Housing Loan Agreement 2. Rs.200 worth e-stamp 1st party: Loan applicant 2nd party: SBI purpose: Housing Loan Agreement 3. Rupees 200 worth estamp 1st party: Guarantor 2nd party: SBI purpose: Housing Loan Agreement 4. All the original documents which you have submitted while applying for the loan. 5. 17 Cheques in favour of SBI. Out of this 5 are for securit and the 12 are for EMI. In my case 3 months I have taken Moratarium
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1260 SBI Special Home Loan branch, Jayanagar Loan Sanction Letter Remarks: estamp mode of payment is Cash
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(Moratarium is the period for which only the interest will be taken from the borrower, which is commonly termed as preEMI) Loan applicant along with guarantor needs to be present at the bank for the documentation. builder is normally not required, if its a land lord hsare then they have to come 8. Disbursement:Once we get the Loan Sanction letter go to the builder and get the following documents1. NOC from the builder stating he hasnt mortgaged this property to any other bank2. Tripartite agreement (estamped/Franked for 200 rs) [This is required only if its a ongoing construction.3. Demand Note from the builder[how much money he needs now) Note: Please make sure whatever demand note they makes is matching with the schedule of payment. In my case I have to twice change the demand Note. 9. From now on for further payments we can just send a mail to the manager to please disburse the amount XXX and then ask the bulder to send a boy to the SBI branch with the
SBI Special Home Loan branch, Jayanagar
DD in favour of builder
Demaded Money
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original demand note and they can collect the DD from the bank directly. We dont have to go to bank anymore. 1. DD for Registartion Stamp duty in the name of Sub-registrar2. DD for Mortgage Stamp duty in the name of Sub-registrar: Rs. 43023. DD for Stampduty in the name of Sub-registrat: Rs. 43024. DD for Building insurance in the name of Sub-registrar: Rs.18300 5. Photostat of the DD for the remaining amount to be given to builder in the name of builder (The original will be given to the builder only at the time of registration by the bank people) 6. SBI Postal mail form which needs to be send after registration saying we
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10. Now its time for registration and the final payment to be made to the builder. here there are some things to be careful.a) Check with the builder two days before registration, how much is the current registration Stamp duty and the same needs to be conveyed to SBI. Instead of paying the registration amount from our pocket, its better to be taken from the Loan account(so the same needs to be paid to the builder from our side), the reason for the above is that it will save us some money interms of DD charges as SBI themselves are taking the DD in the name of registrar, we dont have to pay any DD sur charges.b) If you are doing a, that is getting the DD from SBI loan amount, then you need to send to SBI the receipt for the same amount being paid to the builder (if you have already paid this ignore it)c) Remind the SBI manager regarding the registration and also ask them keep the DD ready before 1 day so that we can take a photostat of the same and give it builder. This is must as the builder
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needs the DD# and other details in the sale deed
have submitted all the registered documents to SBI. 1. Registered Sale Deed2. Registered Mortgage Deed [Only mandated by SBI, HDFC and other banks dont mandate this]3. Encumbrance Certificate after Sale deed registration [ Once sale deed is registered, the flat will be in your name]4. Encumbrance Certificate after Mortgage deed registration [ After this the flat will be in the name of SBI and your name] once we close the loan, we need to register it back to our name Note: Everything all the originals need to be submitted to the SBI branch/officer
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11.Finally its party time and the Registration Day has come. This is the easiest thing, as the builders will arrange everything and we dont have to do anything apart from being present at the registrar office for nearly 4 hrs. Normally, at the end of the registration, you can give a call to the SBI officer and they will personally come and give the DD to the builder, but in my case since they were totally busy, they asked me to come over to the branch and collect the DD
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and give to the builder.
if they come to the registrar office after registration [Make sure you take enough photocopies before you submit the same to SBI]. 5. The very next day you need to send a Postal mail to SBI saying you have submitted all the originals to SBI on so and so date. 6.
THE END!!!!!!!!! Comments 1. Sandeep says: December 27, 2011 at 2:24 PM Hi Jerin, Thanks for the post, really helpful. I got a quick query on the abovewhy did you have to take so much of trouble running around, where as HDF or citi would have made is much easier and convinient.Any reasons?? I am right now in a dilemma to which one to go with for home loan. Sandeep Reply jerinjoseph says: February 6, 2012 at 7:43 PM Thanks Sandeep. Sorry for the late reply. I saw the comment now only. All SBIs u dont have to run behind. Whatever I explained is apllicable only for Special Home loan financing branch which doesnt have any agents(Pros and cons of SBI special branch is explained in another blog post). The reasons I went for SBI when compared to HDFC/Citi bank are listed below
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1. SBI being a nationalized bank there are no hidden charges/policies unlike private banks 2. As far as I know there are no other banks which have a plan similar to SBIs max gain plan. Max gain plan is a Overdraft loan account and you can make part payments to the loan whenever you want and also you can withdraw whatever u paid in excess at anytime through online transfer. For eg: lets say if you have a homeloan of 5 lakhs and lets say you got some additional cash in bank say 1 lakh. This 1 lakh can be paid to the home loan there by reducing the principal amount to 4 lakhs and from then on the interest will be calculated for 4 lakhs. Now lets say after 2 months u got a family emergency and u are in need of money. Then with maxgain plan u can withdraw the 1 lakh which u paid in excess during that time. Reply amey says: November 1, 2012 at 9:20 PM Thanks for such a huge & informative portal but, I have an query as Just initiated by HL from SBI & process havent yet started but, wanted to know as what is the Expiry of SBI sanction letter. is it 2 or 6 mths. 2. Bipin says: January 10, 2012 at 10:38 PM thanks for the such detail explanation ! Reply 3. siva says: January 25, 2012 at 9:54 PM Excellent.this is very useful information.Thanks for sharing this. Reply 4. sunil.k says: February 6, 2012 at 6:09 PM thanks for u r suggestions i m in processing stage valutor will come soonthnx Reply 5. Chetan D says: February 8, 2012 at 6:15 PM Thanks for sharing the detailed information. I had one query (might be simple one for you): Does the Stamp Duty and Registration DD needs to be taken from same bank where I am planning to apply the loan for? Suppose I am taking Home loan from SBI and planning to get the DD from Bank of India. Does SBI will create problem while sanctioning the loan? is there any policy around this? Reply
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jerinjoseph says: February 8, 2012 at 9:35 PM Hi Chetan, As far as I know here is no mandate that Stamp duty and Registration DD needs to be taken from the bank from where we have got the loan. But taking the DD from the same bank(I know only about SBI) is always a better option as SBI will not charge for taking the DD (provided yor home loan is also from SBI.Most of the banks charge a nominal amount for taking DD). That money you can save. Reply Chetan says: April 21, 2012 at 2:22 PM Thanks Jerin for your reply. I paid the Stamp Duty and Registration charges via Bank of India DD. My home loan sanction appointment has happened on Friday. I was told to pay following charges : Stamp Duty for Loan and Mortgage in cash 7500 Processing Fee : 6500 Property insurance :22000 I asked the SBI manager for receipt of this 7500 (cash) which was ultimately paid to stamp vendor. Actual stamp cost was around 6500 to 6800 since was signing so may documents, i was not able to count that. The SBI manager told me he cannot give me the receipt as it is directly paid to stamp vendor. So i had few questions: Is this stamp charges have to be really paid by us? Are they not part of processing fee? What would be the stamp (total value) required for a loan of 30,00,000 (30 lacs amount)? I fear that the amount has not got into the pocket of SBI manager advance Chetan jerinjoseph says: April 21, 2012 at 3:17 PM Hi Chetan, Stamp duty thing is for sure not part of the processing fees. Since I paid from the SBI home loan account only, I didnt face any issue. As SBI just gives the DD for the amount which you ask. I just gave it to the registrar office and got a receipt. not sure how the stamp duty prices are separately calculated. (I can be wrong here as I am not an expert on this and I dont most of the calculations now as I have done it one year back) Thanks in
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Chetan says: April 23, 2012 at 2:28 AM Thanks Jerien for the below reply. Just to update you the stamp duty for mortgage is different. This has to be paid in cash. not sure though how the stamp value for this is decided/calculated . No calculation logic for this was available on Internet. I enquired with my friend who has taken the housing loan, he was also told to pay some stamp amount in cash for this loan and mortgage. I also heard that at some places SBI itself manages this.. Dont know whats the fund in taking the cash from home loan borrower directky without giving the receipt jerinjoseph says: April 23, 2012 at 7:23 AM Hi Chetan, Thanks for the clarification. But I do remember in my case I have paid everything as DD to registrar office [Please refer my Step 10, Output documents]. I havent paid single amount to SBI apart from the processing fee which I paid as cheque. 6. Vivian Abraham Kavunkal says: February 9, 2012 at 1:11 AM Can we demand a DD in buyers name ?! I mean so that the seller could get the money in cash. Reply jerinjoseph says: February 9, 2012 at 7:58 AM Hi Vivian, I am not sure about this. But I dont think bank will allow it. But when I took the home loan, I also took a interiors loan along with it and for interior loan normally bank will disburse the DD in the name of either the interior contractor or to you if you provide the bills claiming that you have paid the amount to the interior designer. Similary you can check with your builder whether they can give you a receipt saying they got cash from you for the amount for which you are planning to get DD and then later ask the bank to give the DD in your favour. But I am not sure on this. please check with the bank for confirmation. Reply 7. Himanshu says: February 11, 2012 at 11:37 AM Hi A very informative blog which ideally shud have been in SBIs site.. I have one question on step 9. How we do request for subsequent payments from bank ? Do we e-mail the self attested scanned copy of demand letter and request letter to branch ? Within how much time do they prepare the cheque ? Do we need to go to the branch and get
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something done in person ? Reply jerinjoseph says: February 11, 2012 at 2:19 PM Hi Himanshu, Thanks for the comments.As you mentioned for the subsequent payements you can just send an email to the sbi manager who is assigned to you from the special branch along with the scanned copy as attachment. I think atleast one day before you need to notify them via mail/phone so that they can prepare the DD Reply Himanshu says: April 19, 2012 at 11:33 PM Hi Jerin Thanks for replying on that but is the process still applicable ? I emailed my branch in Gurgaon, like always they did not respond. When I called them up they said they SBI has stopped entertaini g requests over email which I seriously doubt is the case. any recent experience of yours ? jerinjoseph says: April 19, 2012 at 11:39 PM Hi Himanshu, My experiences are with the Special Home loan branch of SBI, which as of my knowledge are only two in India, one in Chennai and one in bangalore. I am not sure about the practices followed by normal branches as it is totally different. For special home loan branch, the chief manager of that branch itself can sanction a loan, which makes the sanctioning faster where as for normal branches, it has to go to the Head branch(RACPC i guess) to get it sanctioned. 8. Abhishek Anand says: February 21, 2012 at 8:49 PM Good to see such a compilation. makes it easy from here on. Just a quick question. What is a tri partie agreement specially for SBI? Reply jerinjoseph says: February 22, 2012 at 8:16 AM Hi Abhishesk, I am not sure how correct i am on tripartite. As per my understanding Its basically a agreement between the three parties involved (Buyer which is us, Vendor which is builder and the Financier which is SBI/any other bank). This is required only in the case of a ongoing construction. But normally all the banks/builders have a standard template for
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this. In my case I checked with the builder and they had a a template and they gave it to me and it worked. Please refer the following link for a sample tripartite agreement template from united bank of india http://www.unitedbankofindia.com/annexiforms.htm Reply 9. Vinu says: March 8, 2012 at 1:57 PM Excellent brefing..Thanks Reply 10. Prasad says: April 11, 2012 at 4:52 PM Hi Jerin, Thanks for giving lot of information. I am also palnning to take house loan from SBI. I met customer relationship officer, sbi , indiranagar. I submited set of legal documents and slae agreement. He told he would send those to his advocate. once advocate gives clearance, then i have to submit application with required documents.is it step5(submiting documents) what you mentioned.I also asked him whether i have to roam for loan process.He told, once loan sanctioned once i have to go to head office and submit the documents for documentation.My builder told me to go for AXIS bank as SBI loan process is slow, but i am going for SBI as it is nationalized bank. Am i taking risk? Usually how long it will take? My builder already collected 0.1% for franked notary charges and he also told incase of SBI it is 1%.But SBI manager told it is 0.1% only.I want to know what are the current charges? SBI loan required guarantor, I thought to go for insurance to avoid guarantor and discussed with SBI manager. Do you know which is good insurance, if it is lower premium it will be good for me.Here objective of taking insurance is to avoid gurantor not to get benifit from insurance. Can you suggest good insurance for house loan? In loan application they mantioned SBI Life Rinn Raksha Policy, should i go for only that policy or can i select different policy? Have faced any problem with SBI for releasing money? Reply jerinjoseph says: April 12, 2012 at 10:16 AM Hi Prasad, Thanks for your comments. Regarding your Questions 1. Is it step5(submiting documents) what you mentioned? Jerin: In my case I have got the loan from SBI special home loan branch Jayanagar. There
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you may have to do most of the work including getting the legal opinion and valuator statement etc, bank will just do the sanction, once everything is there and verified. So in this branch usually the loan gets sanctioned much faster as we are doing most of the work. Downside is that we have to do most of the work. The pros and cons of special home loan branch is posted in http://jerinjoseph.wordpress.com/2011/02/02/pros-and-cons-of-specialhome-loan-branch/ 2. Am i taking risk? Usually how long it will take? Jerin: I also went for SBI because of the same reasons(Nationalized bank]. One more thing is that with SBI there wont be any hidden costs/other charges unlike HDFC/ICICI and also their legal verification are much stricter than any other banks which gives us a good confidence about the property. I am not sure of other banks. As I mentioned in the question 1, special hoem loan branch normally takes max 8 days to get it approved. But in my case it took approximately 3 weeks as there was some audit going on in the branch. 3.My builder already collected 0.1% for franked notary charges and he also told incase of SBI it is 1%.But SBI manager told it is 0.1% only.I want to know what are the current charges? Jerin: In my case I paid 1% during Jan 2011 timeframe[refer step4]. I am not sure of the current charges. But when i took loan also I heard different banks asking different percentages. Also one more thing to note is what ever amount this 1% which we pay can be reclaimed if we do the final registration at the actual price than at the guidance value. [But there are some conditions on that and I am not sure about all those things, heard the estamping/franking and final registration has to be done on the same registrar office] 4. Regarding Guarantor? Jerin: in my case I went with the guarnaor and it was the easiest for me as already my brother inlaw had taken a home loan from the same branch. So I just need to quote their loan account number to the bank. I am totally ignorant/unaware of the insurance. 5.Have faced any problem with SBI for releasing money? Jerin: I never had any issue with that. Reply Prasad says: April 13, 2012 at 11:05 AM Hi Jerin, Thanks for giving quick reply. 11. Pavan says: April 21, 2012 at 11:36 AM Thanks for the fantastic explaination. I have one query: Shall I go for rinn rakshak insurance policy or any other term insurance? I came to konw today that in SBI rinn rakshak, sum assured decreases whn principle of loan amount decreases during tenure, for eg: say i go for home loan of 30 lakh and if i opt for rinn rakshak plan, sum assured i 30 lackhsay down the line, after 5 years my principle of loan amound
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decreases to 20 lakh ( either by doing pre payment or with EMI) automatically sum assured also decreses to 20 lackwhich i believe is crap.where in if you opt for any term insureance plan, Sum assured remains same for entire tenure Kindly correct me if my understanding is correct and should I go for Term insurance plan by rejecting SBI rinn Rakshak. Regards, Pavan Reply jerinjoseph says: April 21, 2012 at 3:08 PM Hi Pavan, Thanks. Sorry I wont be able to help as I am totally ignorant about the Insurance. Reply 12. Manav says: April 24, 2012 at 9:41 AM Is SBI SPB on St Marks Road is a special home loan bank branch as well? It is called as Specialized Personalized Bank though. Also are you aware about the documents to be submitted when a resale flat to be purchased which is still not registered? Meaning, the builder has sold the flat to person X and person X now wants to sell the flat to person B which is still not registered. Thanks for your help. Reply jerinjoseph says: April 24, 2012 at 10:43 AM As far as I know there is only one SBI special home loan branch in Bangalore, which is in Jayanagar 4 th Block near the BMTC Bus Depot. For your second question, I think there is no change in the list of documents as this is some what exactly the same case where you are buying the flat from a land owner share instead from a builder share. The documents will remain same I guess. I am not 100% sure. You can walk in to the SBI special home loan branch on a sunday [They are open on sundays] and they will guide you properly. Reply 13. Prasad says: April 25, 2012 at 10:04 AM Hi Jerin, I have few doubts Property Valuation: Is there any chance property valuator may estimate property value lesser than buying price?
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Documents for applying House loan: I have all the documents with me except following documents 1.Plot allotment certificate from builder ( This builder mentioned in sale agreement, is it ok or i have to take seperate document for this) 2.Cost breakup (Builedr mentioned payment schedule in sale agreement, is it enough?) 3. NOC from Builder (When i have to submit this doc while applying(step 5) or documentation(step 7)?) NOC from the builder SBI mentioned it should be in the format of SBI bank.I saw the format, all these details are already included in sale agreement, do i need seperate doc for this? Can you please help? Reply jerinjoseph says: April 25, 2012 at 10:31 AM Hi Prasad, Is there any chance property valuator may estimate property value lesser than buying price? Jerin: I also had the same fear. but normally it will never happen. Also the valuators price in my case was around 6 lakhs more than what the builder has quoted. So dont worry about it. I have all the documents with me except following documents 1.Plot allotment certificate from builder ( This builder mentioned in sale agreement, is it ok or i have to take seperate document for this) Jerin: I am not sure on this. Please check with the bank. 2.Cost breakup (Builedr mentioned payment schedule in sale agreement, is it enough?) Jerin: yes that is more than enough. I also had it in the agreement. 3. NOC from Builder (When i have to submit this doc while applying(step 5) or documentation(step 7)?) NOC from the builder SBI mentioned it should be in the format of SBI bank.I saw the format, all these details are already included in sale agreement, do i need seperate doc for this? Jerin: In my blog its in Step8. Also i dont remember any particular format for NOC. Only for tripartite agreement they wanted in some format and one of the sample format is mentioned in one of the comments. please search for tripartite in my blog. Also NOC is seperate and Sale agreement is seperate, So u need to have NOC. Reply 14. SANJEEV says: April 26, 2012 at 3:05 PM I HAVE A PLOT FOR CONSTRUCTION I WANT TO TAKE LOAN FROM SBI Reply 15. manu says: May 1, 2012 at 9:57 AM
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thx Reply 16. mathew says: May 9, 2012 at 1:00 PM Hi Jerin, SBI Home Loan branch asked me to take a SBI Life cover. Is it mandatory. If I have a joint loan with my spouse, then in case of an eventuality happening to myself, will the whole home loan burden will be taken off? Also it would be good if you can mention about how to get reciepts of the amount we pay towards interest and principal. Reply jerinjoseph says: June 7, 2012 at 7:58 PM Hi mathews, Sorry for the late reply. SBI life cover I also have taken it. But I dont think its mandatory. Infact mine was also a joint loan and I am also think all the burden should be taken off. But I am not 100% confident as I havent done much research on it. Regarding the receipt for payment towards home loan, every year you can request for a statement(free of cost for 1 copy, some additional payment if you request multiple times) and they will either email you a soft copy or prepare a hardcopy which you can collect it from the spl home loan branch. Reply 17. wilson says: May 21, 2012 at 5:00 PM i am planning to buy a land which is having A khatha and dc converted. i want to know what are the property documents required for buying the land by sbi Reply 18. Gaea says: May 31, 2012 at 7:58 PM Hi Jerin I am building a house. I am too new to bank procedures. My latest problem is, my contractor is refusing to buy construction materials first and then collect money from the bank. He wants me to provide him with the money first. But the bank refuses to release the loan money without the bills. I do not have money to give the contractor! What is the disbursement process of a home loan? Do I have to submit the bills (for construction materials bought) first and then collect the loan amount from the bank? Is there no other way? Please let me know if you can help me with information.
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Gaea Reply jerinjoseph says: June 7, 2012 at 7:49 PM Gaea, I cant help you here as I have got home loan for an apartment. Please check with the SBI bank. Reply 19. jibin babu says: June 7, 2012 at 7:39 PM Hi Jerin, Thanks for the post , its really helpful.. I have applied for SBI home loan I am purchasing the flat directly from the landlord (not builder) He is asking me to register as per the current market value not the actual cost. Whether its possible with SBI ? since I have the sale agreement saying the actual cost of the flat. Thanks, Jibin Reply jerinjoseph says: June 7, 2012 at 7:46 PM Hi Jibin, I am not sure about the current situation. But atleast 1 year back, when I applied, they allowed me to register at guidance value. Reply Rahul Lodha says: July 13, 2012 at 2:15 PM Hi Jibin, Do you have the Tripartite agreement format which was applicable for you as you have purchased from landlord? If yes, please e-mail me at rahul.lodha@gmail.com Regards, Rahul Reply 20. Leonard VA says: June 26, 2012 at 10:48 AM Hi Jerin,
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We have a property and would like to construct a housewe plan to take a construction loan from SBI as we have a SB account there. Can you help us in letting us know couple of things: How does the disbursment schedule work Thanks and Regards, Leonard Reply jerinjoseph says: June 26, 2012 at 10:52 AM Hi Leonard, Please refer Step 8 and 9 for the same.. Reply 21. Sujata says: June 26, 2012 at 12:45 PM hi Jerin, thanks for putting up the info in a fantastic manner! youve done a gr8 job I have one doubt: The bank usually pays 80-85% of the actual amount. Do we need to pay to the builder the rest of the amount before the 1st disbursement is done by the bank ? I mean, is it possible that the bank starts disbursing the loan amount first and we pay from our pocket towards the end, or as and when we can.. Reply jerinjoseph says: June 26, 2012 at 3:04 PM Thanks Sujata. Regarding your query on the payment from SBI. SBI will not give you the disbursement unless we show them that we have paid our portion. This needs to be shown via receipts as well as the cheque/DD photocopies. In my case I applied for the loan, when the building was 85% complete and SBI mandated that I need pay the 20% of the 85% from my side and once i produced the receipts for the same, tehy disbursed the remaining amount. Reply 22. Hemal Salian says: June 27, 2012 at 5:08 PM Hi Jerin, A very helpful article. i have a doubt I am planning to buy a house which is in under construction stage and it will be ready after 2 years now in that case if I pay 20% now to book the house at what stage I
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am supposed to do registration? I mean registration is done while flat under construction or after the flat is ready? also once registration done.. then i will apply bank for loan so will bank disburse the amount after flat is ready or in between construction? While the flat is underconstruction stage how many part payments are we supposed to make? Looking forward for your reply. Thanks in advance for help Hemal Reply jerinjoseph says: June 28, 2012 at 12:40 AM Hi hemal, To answer your question. I am not 100% confident, but I believe normally registration is done after the flat is completed, but I have seen many people registering much before the flat completion. I dont think SBI will allow registration before completion of project, atleast thats the answer I got when I enquired. Regarding your other question, its not a mandate that you should give your 20% share initially only, but giving ur full 20% share initally is a good option as you dont have to pay interest for that. so will bank disburse the amount after flat is ready or in between construction? Bank will disburse the money anytime once the loan is sanctioned and you show the demand note. Also please remember while applying the loan you need to get a letter from the builder regarding the schedule of payment, like at 40% of completion you need to pay 40% of the total amount some thing like that. So Bank will cross check that schedule along with whether you have paid the 20% of that and then only will disburse the amount. For more details look at the reply which I have given to Sujata. Reply 23. Sahil Bansa says: July 4, 2012 at 9:21 AM Thanks really helped me my project Reply 24. Aishwarya says: July 6, 2012 at 4:30 PM Hi jerin Your blog is wonderful with a lot of information .Well done. I have a query. We have booked the under construction flat for 25.6 lakhs in mysore and intends to take a loan from SBI. The value mentioned in the agreement is 25.6 lakhs ,but the builder says that he would register the sale deed after 6 months as per the guide line value only which comes to only 13 lakhs. Registration will be after 7 months when the flat willl be ready. If the sbi sanction loan for 21
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lakhs (loan iam asking) and if the sale deed reflects the lesser amount ie 13 lakhs ,will SBI object at later stage and will i get into problem. please reply at the earliest as Iam very confused as the builder says that it is the normal procedure to do so . He says the pvt banks does not object and He is not sure about SBI. Reply Guru says: July 19, 2012 at 12:17 PM Hi Jerin, Wonderful post. It was a good experience to understand things in detail before taking a home loan from SBI. Today I had approached SBI Spl Housing Loan Branch this branch for a home loan and they were saying that I need to register the property at Market value and not guide line value. Do you know which manager of SBI had said / allowed you to register at guideline value so that I can also approach the same person. Reply 25. joyadab says: July 13, 2012 at 4:46 PM I HAVE A PLOT FOR CONSTRUCTION I WANT TO TAKE LOAN FROM SBIis this is http://goo.gl/tlqro alright or not Reply 26. Home Loan says: July 16, 2012 at 12:26 PM Hi there! I would just like to give a huge thumbs up for the great information you have here on this post. I will be visiting your website for more groovy info soon. Reply 27. Sudarshan.B says: July 23, 2012 at 1:05 PM Hi Jerin, Can I know which insurance is better for home loan.SBI rinn rakshak or some other? Reply 28. praba says: August 1, 2012 at 8:49 PM Hello, could you please tell me why there would be delay in getting legal opinion from the builder.Builder always say he has not received the legal opinion from the SBI lawyer for past 4 months.How much time does it take normally?
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Please reply. Thanks Reply 29. Deepak says: August 25, 2012 at 4:15 PM What is equitable mortgage & Registered Mortgage , let me know the difference & security of HL Reply PRINCE says: August 30, 2012 at 12:43 AM Equitable Mortgage is physically handing over the title deed of your property to bank and executing a Memorandum of Deposit in the registrar office which costs you less money compared to a Registered Mortgage where u will pay a percentage of Value of the property as Registration fees. Reply 30. Sivakumar says: August 27, 2012 at 5:50 PM Hi Jerin, I have taken loan from SBI and it is now 3 rd year running. I have a doubt when builder collecting the registration charge from me. My flat area was 1000 sq. My flat cost is say 20 lakhs. I have taken a loan for 15 lakhs from SBI(My own interest and i have taken from SBI not builder suggested Bank). If i want to do the registration, the builder is asking to pay me the registration charge for full value. Say for flat cost is 20 lakhs, then it is coming around rs.2 lakhs. But those who took the loan from other private banks HDFC, ICICI (where these are builder suggested banks when i wanted a bank for home loan) the registration amount are 1 lakhs. As per them they will show only the bulidng cost is 10 lakhs and doing the registration. Please advice me, what is the benefit if i do registration for full amount / partial amount? If the loan getters from other bankers are not cheating the government by showing the less value? Reply 31. kumar says: August 29, 2012 at 12:04 AM Hi Jerin, very informative post. I really appreciate your efforts for same. I m interested in buying apmt, and little confused over service tax and vat. Builder is showing a calculation of S.T of 12.36% on (25% of Basic+CarPark+Water+Power) and VAT of 4% on Basic+CarPark+Water+Power. Do you know if this is correct or did you pay similar?
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Reply 32. Mukund Deshmukh says: September 3, 2012 at 10:06 PM Great Info.. Thanks !! I have read almost all the posts.. Thanks to all. Reply 33. blore buddy says: September 10, 2012 at 4:25 PM Hi. Thanks for this blog entry. You have mentioned in STEP 11 the following. Registered Mortgage Deed [Only mandated by SBI, HDFC and other banks dont mandate this] what is this? How much it cost to de register in your name after loan is paid back? Reply 34. mahendra patwal says: September 21, 2012 at 12:59 AM hello jerin, i went to a property lawyer and understood that i would not be able to get a loan sanction from sbi as the property papers do not include succession certificate. so now i am planning to borrow from other private banks, would be very helpful if you suggest me an appropriate bank. moreover, i have applied for a loan in indiabulls, so what are your comments about it. will it be possible for me to transfer my loan to sbi in the future. thanks in advance Reply 35. Arup Bhanja says: September 24, 2012 at 3:20 PM Nice compilation and explained in proper steps! Reply 36. anand jetha says: September 26, 2012 at 2:39 PM I need to ask that whether sbi can charge dd commission on the demand draft they have issued for disbursement of loan. Reply 37. Praveena says: October 4, 2012 at 1:27 AM Very Useful article. I have taken a home loan from SBI in Jun 2012. I have now been asked to do the mortgage registration immediately. Is this really required? when enquired in the registrar office, i was told that it would cost 4% of loan amount (stamp duty) + 1% of loan amount (regn fee). No
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one in the bank informed me about the registration procedure.Im at shock, i must say. Till date i was happy thinking that SBI is transparent and had no hidden charges. But now, i have started thinking if i should transfer my loan to some other bank that does not require this procedure. Reply 38. Praveena says: October 4, 2012 at 1:29 AM Very Useful article. I have taken a home loan from SBI in Jun 2012. I have now been asked to do the mortgage registration immediately. Is this really required? when enquired in the registrar office, i was told that it would cost 4% of loan amount (stamp duty) + 1% of loan amount (regn fee). No one in the bank informed me about the registration procedure.Im at shock, i must say. Till date i was happy thinking that SBI is transparent and had no hidden charges. But now, i have started thinking if i should transfer my loan to some other bank that does not require this procedure. Please tell me if there is any other work around. I appreciate your help/input. Reply Rajeevi Shyam Advocate says: October 13, 2012 at 7:13 PM Praveena I am Rajeevi Shyam Advocate on the panel of State Bank of India and just happened to glance at this blog by way of Chance and I havent read all the comments but as far as stamp duty for registration you may have got it wrong it is point five percent of the loan amount as stamp duty and point five stamp duty for registration. Kindly observe it is only point five percent. and if you really go to see for every DTD every applicant pays the .5% as stamp duty only here the DTD is being registered and every bank is registering the DTD. So it is not 4% and 1%. there must be some wrong information that you have received and Jerin Joseph you have done a great BLOG about the Loan process details. which I am sure will help many customers. Thanks Reply 39. Sanjeet says: October 17, 2012 at 1:06 PM Really helpful .Thanks for Sharing! Reply 40. s1u1b1h1a says: October 17, 2012 at 7:09 PM Hi Jerin, Nice blog. Its very interesting. We have just visited SBI electronics city today for a home loan. Builder has got approval from SBI Indra nagar branch. What is the use of having approved at Indra nagar and I have to submit all papers related to builder to SBI electronics city. When I ask the builder he says its already approved by SBI and asks me to go to Indira nagar which is too far from my home and work. In what way the approval at one branch of same bank help me in the process of getting a quicker sanction? As discussed with an official
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at electronics city he said 20- 30 days from today if all papers are given at first instant. If I go to Special home loan SBI at jayanagar, will the same apply with respect to document submission related to builder? Reply 41. Manju Pradeep says: October 30, 2012 at 3:34 PM We have a GDA flat in IndiraPuram, Ghazia bad ( Uttar Pradesh ) & have taken a loan from DHFL Finance Housing loan , running the loan last 10 months period . We would like to transffer the loan to sbi, so that pls advise Is it possible to transfer SBI. pLS REPLY as soonest. Thanks, Manju Pradeep. Reply
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11/ 6/ 12

SBI H e Loan Pr ocess Expl i ed i St eps j r i j seph om an n e no