f you landed on this page by some search engine, you are certainly in looking out for a change in your

living style or looking to buy a new house. The good news is: You have come at the RIGHT place. You'll soon realize that home loan companies do exist, and they continue to exist to provide Basic Home Insurance as well as Home Loan Information including Home Loan Resources because of the very people who desire to own a house the soonest possible time - like you! It is definitely one of the major things that you can board on in your lifetime. The bad news is: however is that not everyone in this globe is like you, loaded enough (financially, of course) to be able to build a house as soon as he wants to.

HOME LOANS IN INDIA

Home loan interest rates Whether you are Non Resident Indian or Resident of India, and you are thinking to start your journey of buying a new house, looking to move to a new house, investing in property or are looking forward to refinance, Consider answering these questions to yourself:

Home loans step-by-step

Which type of home loan should I prefer?

Will it be the best scheme that will be fitting my budget?

Can any insurance plan cover for an unpaid monthly due?

Is there a fine or penalty or even some reward as well if the whole amount of loan is paid ahead of the due date?

These are just a dash of the questions to be answered when considering taking the plungeinto the loan journey. The different home loan types are hereby presented to you to make your journey that more smoother or step by step, safer and comfortable. Yet, Got a fix on fixed rate or variable rates, offset accounts, lines of credit or bridging loans!! And we have covered the basics of your journey here. Going back to you future house owner, have you got the answers to your questions? Start answering them now and take the plunge! With so many real estates sites coming up in Indian market, finding an ideal house isn't that big a issue nowadays, when you can virtually see all across the home you need to purchase by the various real estate simulation programs and videos available, but you still need to purchase it, right? - To really say "own" it. A home loan, also popularly identified as a mortgage, is an easier financial option to own a house. Once you've decided to endeavor on a home loan, there are so many things that you need to be informed with. Not only is it going to be an emotional experience, it is also going to be a very informative monetary journey, as you will be dealing with the whole caboodle of the mortgage process along the way. There are thousands of home loan companies waiting to provide you with your financial needs. Part of the success of this whole financial move is partly in your hands, the greater part relies on the efficiency of your chosen mortgage company. In Guide2homeloans, we bring forward to you, the best of the delicacies of the different home loan types available there in the world market and even you can also know about the latest Home Finance News in India. We have published a lot of information, here and elsewhere, on a wide variety of topics related to home loan types and equity loans and even mortgages. We will add them regularly as we continue to publish them.

"THE MOST PREFERRED HOME LOAN PROVIDER " voted inAWAAZ Consumer Awards along with the MOST PREFERRED BANK AWARD in a survey conducted by TV 18in association with AC Nielsen-ORG Marg in 21 cities acrossIndia. SBI HOME LOANS now offers Interest Rates concessions on GREEN HOMES in accordance with SBI's commitment to Environment protection.

SBI Home Loans come to you 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 you why it makes sense to do business with State Bank of India.

SBI Home Loans Unique Advantage Package of exclusive benefits. Low interest rates. Further, we charge interest on a daily reducing balance!! Low processing charges. No hidden costs or administrative charges. No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan. Over 13,700 branches nationwide, you can get your Home Loan account parked at a branch nearest to your present or proposed residence.

HOME LOAN PRODUCT VARIANTS

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i)

SBI Maxgain (Home Loan as an overdraft)

An innovative and customer-friendly product to enable you to earn optimal yield on your savings and minimize interest burden on Home Loans, with no extra cost. The loan is granted as an Overdraft facility with the added flexibility for you to operate your Home Loan Account like your SB or Current Account. The product serves to minimize your interest cost by enabling you to park your surplus funds in SBI-Maxgain (with the benefit to withdraw the surplus funds whenever you require), specially in the wake of low yields from other deposit/ investment avenues. Minimum Loan Amount: Rs.5 lacs

ii)

SBI Realty

HOME LOANS FOR PURCHASE OF PLOT OF LAND FOR THE PURPOSE OF CONSTRUCTION OF A DWELLING UNIT

A unique product if you are on the lookout for a loan to purchase a plot of land for house construction. The loan is available for a maximum amount of Rs.10 crore and with a comfortable repayment period of upto 15 years. House construction should commence within 2 years from the date of availment of SBI-Realty Housing Loan Customers are also eligible to avail another Housing Loan for construction of house on the plot financed above with the benefit of running both the loans concurrently. (Other terms and conditions as applicable to regular Home Loans)

iii)

SBI Home Equity

SBI Home Equity scheme is launched for granting personal loans to the banks home loans customers against the security of their house property. All home loans customers with a satisfactory repayment record of at least one year and who maintain a Savings bank or current account with us. The loan can be used for any purpose, viz. extension/repair of house, purchase of car/ consumer durables, education / medical expenses of family members, personal expenses, etc. There will be no need to obtain documentary evidence for the end-use of funds. However a certificate from the customer in the application to the effect that the loan will not be used for speculative purposes would be obtained. Minimum Loan Amount: Rs.50,000.00 Maximum : Rs.2 Crores

Interest Rate: Term Loan 1.25% above Base Rate i.e 11.25% p.a. (Base Rate:10% p.a.) Overdraft 1.50% above Base Rate i.e 11.50% p.a. (Base Rate:10% p.a.)

iv)

NRI Home Loans

HOME LOANS TO NON RESIDENT INDIANS (NRIs) AND PERSONS OF INDIAN ORIGIN (PIOs HOLDING A FOREIGN PASSPORT) Eligibility Individual(s) over 18years of age with a steady source of income who Loan Amount The loan amount is to be determined on the basis of repayment capacity taking into account income, age, assets and liabilities, qualifications, stability of occupation, and employment prospects on return. The loan amount is subject to the following: Are Non Resident Indians (NRIs) holding a valid Indian passport. Are persons of Indian Origin(PIOs) holding a foreign passport. Minimum employment tenure in India/abroad not less than 2 years.

Minimum: Rs. 3 lacs Maximum: Maximum permissible loan amount would be determined by EMI/NMI ratio criteria as applicable to regular Home Loans scheme for Resident Indian customers, which is 30% for Net Annual Income (NAI) upto Rs.2 Lac, 50% for NAI above Rs.2 Lac and upto Rs.5 Lac, 55% for NAI above Rs.5 Lacs and upto Rs.10 Lacs, 65% for above Rs.10 Lacs.

v)

SBI Tribal Plus

SPECIAL HOME LOAN SCHEME FOR HILLY/TRIBAL AREAS 'SBI-Tribal Plus' Home Loans, a Special Scheme designed for Hill/Tribal areas for extending financial assistance to individuals in such areas to :
a. b. c. d. e. f.

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. Loans given against Third Party Guarantee Maximum loan Rs.10 lacs Maximum Loan Term 15 years

vi)

Gram Niwas

HOME LOANS TO FARMING AND POOREST OF THE POOR IN RURAL AREAS The Scheme covers all rural and Semi-urban centres. Rural Area for the purpose of the Scheme is the area comprised in any village including the area comprised in any town, the population of which does not exceed 50000 as per 2001 census. The scheme seeks to provide home loans to farming and poorest of the poor in rural areas for the purpose of purchase or construction of a house, repairs and renovation, purchase of plot for the purpose of construction of a house/shed etc.

vii)

Sahyog Niwas

RURAL HOME LOANS TO SELF HELP GROUPS The Sahyog Niwas scheme has been instituted to finance the self help groups with a good track of payment record for 2 years, for on lending to members for housing in rural areas, covering the following purposes. i) For the 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.) ii) For the renovation or repair of an existing house / shed iii) For the purchase of a plot of land for the purpose of house construction.

iv) For the extension of existing house / work space to existing house / shed.

viii)

SBI Green Home Loan

State Bank of India has adopted a Green Banking Policy with an objective of contributing towards the fight against the adverse climate change. One of the initiatives approved by the Board for this purpose is incentivizing customers who go in for Green Projects, i.e. those projects which reduce Carbon Emissions and promote Renewable Energy. Green Housing or Green Home is one of the types of projects identified for this purpose. At present State Bank of India the only Bank in the country supporting the cause of Green Buildings by offering 0.25% concession in interest rate and waiver of processing fees, on the existing home loan products to customers who go in for Green Projects.

RELATED HOME LOAN PRODUCTS

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i)

Earnest Money Deposit (EMD) Scheme

Many Government agencies, like Urban Development Authorities and Housing Boards, periodically come out with schemes for sale of plots/houses, wherein applicants have to submit 10-20% of the cost of plot/house as Earnest Money Deposit (EMD) and allotments are made by draw of lots. The SBI EMD scheme is designed for financing against earnest money for allotment of a house/plot. Individuals above 21 years of age and with a steady source of income are eligible to avail loans under this scheme. Salient Features of the Scheme: 1. No minimum income criteria. 2. Margin waived in al cases. 3. Eligible for 100% of application money, subject to maximum loan amount of Rs.10 Lacs. 4. Waiver of security in all cases irrespective of the loan amount. The above mentioned features of the scheme are applicable subject to the following conditions: 1. Allotment letters/refund orders should be routed through SBI. 2. Lump sum amount equal to 6 months interest to be taken upfront. 3. PDCs one for the principle amount of EMD and another towards interest for the next 6 months should be taken to meet the eventuality of refund getting delayed. ii) SBI Reverse Mortgage Loan

LOAN FOR WELFARE OF SENIOR CITIZENS IN INDIA

SBI Reverse Mortgage Loan Enables house-owning Senior Citizens having inadequate income to meet their financial needs for renovation/repairs to house, medical & other personal purposes. There is no compulsion for the borrower to repay a RML during his or her lifetime or till such time he or she continues to stay in the house. The borrower continues to retain ownership of the house. Also, the borrower will have the option to prepay the loan at any time during the loan tenure and there will be no prepayment penalty.

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 applicants 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. Expected rent accruals (less taxes, cess, etc.) if the house/ flat being purchased is proposed to be rented out. Depreciation, subject to some conditions. Regular income from all sources.

2)

3) 4)

Security: Equitable mortgage of the property

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

Home Loans Processing Fee It is payable at the time of documentation only. Loan Amount Upto Rs. 25 Lacs Above Rs. 25 Lacs and upto Rs. 75 Lacs Above Rs. 75 Lacs NOTE 1) Actual charges for the following will be payable by the customer in addition to the processing fee: a) Pre-sanction (i) Advocate's fee for property search and the title investigation report. (ii) Valuer's fee for valuation report. b) Post-sanction (i) Stamp duty payable for Loan agreement & mortgage. (ii) Property insurance premium. (iii) Processing fee recovered. Pre-closure / Pre-payment Penalty - NIL Processing Fee 0.25% of loan amount, minimum Rs. 1,000/Rs. 6,500/Rs. 10,000/-

HOME LOANS - INTEREST RATES With effect from 07.08.2012

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All Rate are floating only (Base Rate= 10.00% p.a.) Loan Amount Upto Rs. 30.00 lacs Above Rs. 30.00 lacs and upto Rs. 75.00 lacs Above Rs. 75.00 lacs Linkage with Base Rate over the tenor of the loan 0.25% above Base Rate 0.40% above Base Rate Effective Rate

10.25% p.a. 10.40% p.a.

0.40% above Base Rate

10.40% p.a.

No fixed rate option in any limit bracket.

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.

List of papers/ documents applicable to all applicants: Completed loan application 3 Passport size photographs Proof of identify (photo copies of Voters ID card/ Passport/ Driving licence/ IT PAN card) Proof of residence (photo copies of recent Telephone Bills/ Electricity Bill/ Property tax receipt/ Passport/ Voters ID card) Proof of business address for non-salaried individuals Statement of Bank Account/ Pass Book for last six months Signature identification from present bankers Personal Assets and Liabilities statement

For guarantor (wherever applicable): Personal Assets and Liabilities Statement 2 passport size photographs Proof of identification as above Proof of residence as above Proof of business address as above Signature identification from his/her present bankers

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.

State Bank of India (SBI), the largest nationalized bank in India, is one of the market leaders in the home loan segment. Apart from its myriad products and services, SBI offers home loans for a variety of purposes, including purchase/construction of new house/flat, purchase of an existing house/flat, purchase of a plot of land for construction of house and extension/repair/renovation/alteration of an existing house/flat. SBI home loans come with some unique features that make them stand out in the competition. Besides the standard package of home loans, SBI has some customized home loan products in its kitty, which address the needs of niche customer segments. Explore the article to know all about State Bank of India housing loans. SBI Features Housing Loans

SBI Home Loan provides no cap on maximum loan amount for the purchase/construction of house/flat. There is an option to club the income of the applicant's spouse and children to compute the eligible loan amount. The bank provides free personal accident insurance cover. A complimentary international ATM cum Debit card is also provided by SBI. On the spot "in principle" approval is a special provision for the applicant. If all the required documents are submitted by the applicant, SBI Home Loan is sanctioned within 6 days of the date of submission. The applicant can also consider SBI's Home Loan as a Term Loan or as an Overdraft facility, in case he/she wants to save on interest and maximize gains. SBI Home Loan also provides free personal accident insurance cover up to Rs 40 Lakhs. Repayment is permitted up to 70 years of age, which is an added advantage of SBI Home Loan.

Products

'SBI-Flexi' Home Loans are designed to enable borrowers to hedge their Home Loan against unfavorable movement in interest rates and gives the customers a one time irrevocable option to choose one of the three customized combinations of fixed and floating interest rates.

'SBI-Freedom' Home Loans are customized for high net worth individuals and offer benefits such as 100 per cent finance of the project and no mortgage of the property, provided the individual could show liquid securities such as LIC policies or NSCs.

Eligibility

The minimum age of the applicant is 18 years, on the date of the sanction of the loan. The maximum age limit for a Home Loan applicant is 70 years. It is the maximum age limit, within which the loan should be fully repaid. The applicant should consist of sufficient, regular and continuous source of income for repaying the loan.

Documents

Completed Application Form with one Passport Size Photograph Identity Proof - the applicant can make use of his/her PAN Card/Voter ID/ Passport/Driving License, for the purpose. Residence Proof - the applicant can make use of his/her Recent Telephone Bill/ Electricity Bill/Property tax receipt/Passport/Voters ID Proof of business address in respect of businesspersons/ industrialists Sale Deed, Agreement of Sale, Letter of Allotment, Non Encumbrance Certificate, Land/Building Tax paid receipt etc. Copy of Approved Plan and approval from the Local Body Statement of Bank Account/ Pass Book for last 6 months