COMPARATIVE ANALYSIS OF THE HOME LOAN OF SBI IN BHARUCH

PREPARED BY:
KRINAL PATEL KRISHNA PATEL ANJALI SHAH BHAVINI UNADKAT

What is a Home loan?

Home Loan is a Secured Loan offered against the security of a house/property which is funded by the banks loan, the property could be a personal property or a commercial one. The Housing Loan is a loan taken by a borrower from the bank issued against the property/security intended to be bought on the part by the borrower giving the banker a conditional ownership over the property i.e. if the borrower is failed to pay back the loan, the banker can retrieve the lent money by selling the property.

Home Loan Process & various steps involved:

Find your property Know the home loan Eligibility Select the best home loan after evaluation Applying for the loan Documentation & verification process Credit & default check

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Types of Home Loan

Home Purchase Loan Home Improvement Loan Home Extension Loan Home Conversion Loan Home Construction Loan Land Purchase Loan

Purpose: Purchase/ Construction of House/ Flat Purchase of a plot of land for construction of House Extension/ repair/ renovation/ alteration of an existing House/ Flat Purchase of Furnishings and Consumer Durables as a part of the project cost.

Features:
Interest charged on the daily reducing balance No penalty for prepayments made No hidden costs Loan sanctioned within 6 days of submission of required documents. Repayment permitted upto 70 years of age. 'Plus' schemes which offer attractive packages with concessional interest rates to Govt. Employees, Teachers, Employees in Public Sector Oil Companies. Special scheme to grant loans to finance Earnest Money Deposits to be paid to Urban Development Authority/ Housing Board, etc. in respect of allotment of sites/ house/ flat

Eligibility Criteria & Documentation required for SBI Home Loan:

Salaried
Age Income Loan Amount Offered 21years to 60years Rs.1,20,000 (p.a.) 5,00,000 - 1,00,00000

Self employed
21years to 70years Rs.2,00,000 (p.a.) 5,00,000 - 2,00,00000

Documentation

1) Application form with photograph 1) Application form with 2) Identity & residence proof photograph 3) Education qualifications 2) Identity & residence proof certificate & proof of business 3) Last 3 months salary slip existence 4) Form 16 4) Business profile, 5) Last 6 months bank salaried 5) Last 3 years profit/loss & credit statements balance sheet 6) Processing fee cheque 6) Last 6 months bank statements 7) Processing fee cheque

Home Loan from State Bank of India (SBI) Bank

SBI provides a Two Home Loan With Different benefits and Schemes.
1. SBI Easy Home Loan - For Loan amount upto Rs. 30 Lacs. 2. SBI Advantage Home Loan For Loan amount above Rs.30 Lacs

SBI Home Loan Interest Rate:

NEW RATES Loan amount (Rs lakh) Up to 30 Above 30 and up to 75 Above 75 Source: SBI Effective rate (%) per annum 9.95% 10.10% 10.10%

Documents:
Completed application form Passport size photograph Proof of Identity PAN Card/ Voters ID/ Passport/ Driving License Proof of Residence Recent Telephone Bill/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID Proof of business address in respect of businessmen/ industrialists Copy of approved plan and approval from the Local Body Statement of Bank Account/ Pass Book for last 6 months

(Same documents For guarantor also.)

SBI Home Loans Unique Advantage: Package of exclusive benefits.

Low interest rates.

Low processing charges No hidden costs or administrative charges. Over 13,700 branches nationwide, you can get your Home Loan account parked at a branch nearest to your present or proposed residence

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.

Margin/ LTV Ratio:

Loan Amount Upto Rs. 20 Lacs Above Lacs. Rs. Margin (Min.) 10% Maximum LTV Ratio (Max.) 90% 80%

20 20%

Loan Amount

Linkage with Base Rate over the tenor of the loan 0.25% above Base Rate

Effective Rate

Upto Rs. 30.00 Lacs

9.95% p.a.

Above Rs. 30.00 0.40% above Base Rate lacs

10.10% p.a.

Loan Amount Upto Rs. 25 Lacs

Processing Fee w.e.f 01.04.2013 0.25% of loan amount, minimum Rs. 1,000/

Above Rs. 25 Lacs and Rs. 6,500/ upto Rs. 75 Lacs Above Rs. 75 Lacs Rs. 10,000/

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.

Additional documents required for salaried persons : Original Salary Certificate from employer TDS certificate on Form 16 or copy of IT Returns for last two financial years, duly acknowledged by IT Deptt.

Additional documents required for Professionals/self- employed/ other IT assesses: Acknowledged copies of three years I.T. returns/ Assessment Orders. Photocopies of challans evidencing payment of Advance Income Tax.