A home loan helps you finance a new home purchase. Several financial institutions offer home loans and the process for each is also varied. In this article, we will look at the home loan process of SBI.
SBI home loan process
The stages involved in applying for a home loan are as follows:
Step 1: Preparing the documents about the property
Before you apply for a home loan from SBI, you must already have all the legal documentation about your property from your builder in your possession. It often includes a copy of the check and the booking confirmation.
Whether you are an existing customer or a new customer, SBI offers a simple application process for a home loan. There are five distinct sections on the SBI home loan process application form. The following must be completed section by section:
Form A
You must complete this initial step of the application form by entering all of your personal information as instructed.
Form B
As instructed in this second portion of the application form, you must complete all the information about your employment and income.
Form C
You must choose the precise SBI home loan process for which you are applying in the third section of the application. According to the instructions in this portion of the application form, you must complete all the property and loan information.
Form D
The declaration’s purpose is addressed in the fourth section. You must properly sign the form to complete them.
Annexure A
The form’s final attachment is this annexure. If you want to determine your eligibility for the subsidy provided under the ‘Pradhan Mantri Awas Yojana (PMAY),’ you must complete this annexure. The preceding application form should be completed by your guarantor as well. The co-applicant must complete the application if you are seeking a shared home loan.
Submit the necessary paperwork after applying for a house loan using one of the three aforementioned procedures.
Mandatory documents for SBI Home Loan Process
- Completed loan application form
- Three passport-size photos
- Proof of identity (PAN card, passport, driver’s license, voter ID card)
- Address verification (A recent copy of any utility bill like water, piped gas, telephone, electricity, an Aadhaar card, passport, or driver’s licence)
For salaried individuals
- Pay slips over the previous three months
- A copy of the last two years’ IT Returns or Form-16
For independent individuals
- Proof of a company address
- Last three years’ balance sheet and profit and loss statement
- Business licence details
- A copy of the past three years’ IT returns
- A replica of Form-16A (if applicable)
- A qualification certificate (for CA, doctor, and other professionals)
For Farmers
- Income certificates for the last two years from the Talati, Gram Sevak, or Village Revenue Officer Land revenue records (Forms 6, 7, 12, and 8A)
- Bank account statements for the previous twelve months
For NRIs
The following documents are needed to apply for an SBI house loan if you are a non-resident Indian:
- A copy of a work permit or valid visa
For NRIs having a work profile as a seafarer, any of the following:
- A legitimate employment contract
- Certificate of Continuous Discharge (CDC) (if disembarkation stamp is not older than six months)
- A contract that has since expired (if disembarkation stamp is older than six months)
- As evidence of employment with a shipping company, the most recent pay stub
- Relevant pages of a passport (with overseas address)
- Foreign address proof: National Identity Card, driver’s licence, utility bill, and international bank statement issued by the government
- Certificate from the employer
- Address relationship proof and proof that you are staying with a blood relative.
Step 2: Obtaining legal counsel for an SBI home loan process
You must see a lawyer who is a member of the SBI panel with all the necessary legal documentation to have them validated. He must check the sales agreement and the construction agreement. It may be necessary to present a document such as an encumbrance certificate or a receipt for all taxes paid to date. This stage could take the longest because it might require numerous documents from different sources.
Step 3: Property valuation
A property valuation from the SBI panel must assess the property after the legal valuation is done. You will receive a letter after he completes the property valuation.
Step 4: Franking or e-stamping of the agreement
The sales and construction agreement must be franked or electronically stamped to qualify for an SBI home loan. Depending on the worth of your property, the value of e-stamping may vary. Franking can be done at the registration office, and there are some register offices, post offices, and syndicate banks where e-stamping can be done.
Step 5: Application submission for an SBI home loan Process
The borrower must contact SBI after completing the process explained above and the required paperwork and application. The legal opinion, valuator statement, and other documents are required to be supplied following the bank’s requirements.
Step 6: Waiting
Depending on the individual, there may be a different waiting period before the loan is approved. The loan can be disbursed by the special home loan branch in three days. However, routine follow-ups are necessary, including requesting the inspection be completed and doing other things to speed up the process.
Step 7: Documentation
As soon as SBI approves the loan, they will call you. Following that, you will be required to submit more paperwork, including the following:
- You are the first party, and SBI is the second party in a deal for two E-stamps for Rs. 400.
- 200-rupee electronic stamp with the same partners as above.
- E-stamp valued at Rs. 200, where SBI is the second party, and the first party is the guarantee.
- Submitted documentation for the loan application.
- Checks made payable to the State Bank of India.
The above documents must be presented to the bank in person by both you and your guarantor.
Step 8: Disbursement of loan
After the SBI has approved the loan, the borrower must obtain the following paperwork from the builder:
- NOC declares that there are no mortgages on the property with any other banks.
- A trilateral agreement if the property is still being built.
- To match the payment schedule, demand a note from the builder.
Step 9: Registration
Verify the stamp duty before registering, and let the bank know about it. Once the registration process is complete, an SBI bank officer comes to your home to deliver the DD to the builder. You may be asked to pick it up from your local branch.
Because there is no prepayment penalty and you can reduce your APR by prepaying the loan without concern, SBI Home Loan Process are a fantastic option for home loan borrowers.
See about: SBI IFSC code list