Housing Loan

SBI HOUSING LOAN SCHEME
1. Target Group : Permanent employees of State/Central Govt., Public Sector Undertakings, corporations, private sector companies, and reputed establishments are eligible under the scheme.
2. Eligibility : Permanent employees of State/Central Govt., Public Sector Undertakings, corporations, private sector companies, and reputed establishments are eligible under the scheme. Professionals, self-employed and others who are income tax assesses and persons engaged in agriculture and allied activities can also avail of the loan facility.
3. Purpose : The Bank provides Housing loan to individuals to enable them to,
  • purchase or construct a new house/flat,
  • purchase an existing (old) house/flat or extend an existing house,
  • repair or renovate an existing house/flat,
  • purchase a plot of land for purpose of construction of a dwelling unit,
  • purchase furnishings/consumer durables as a part of the project cost.
4. Type of facilities : Term Loan
5. Quantum of Finance :
  • The actual loan amount is to be determined on the basis of repayment capacity taking into account income, age, assets and liabilities. The maximum loan amount will be TK 100.00 lacs.
  • Regular income from all sources can be considered provided the sanctioning authority is satisfied with the proof of income. The income of spouse can be included provided the spouse guarantees the loan.
  • The expected rental less taxes, cess, etc. in the case of house/flat being purchased, which is proposed to be rented out may be added for computation of the eligibility ceiling.
6. Margin : 30% of the total project cost including cost of land, additional amenities, registration amount, stamp duty, 30% of the cost of land, including registration, stamp duty, etc.
7. Take Over Of Loans : Takeover of housing loans may be considered after due diligence and precautions, in cases where
  • possession of the house/flat has been taken,
  • repayment of the existing loan has already commenced,
  • instalments are being paid as per terms of sanction and
  • The owner has valid documents evidencing his title to the house/flat.
8. Rate of Interest : Loans may be given both on a fixed or a floating rate basis, as per interest rate prevailing from time to time. Branch Manager may have discretion to reduce the interest rate by up to 1% p.a.
9. Security:
  • Primary
  • Collateral
:
  • Mortgage
    • Registered mortgage over property has to be obtained in all cases.
    • Other security
    If mortgage of property being financed is not possible, sanctioning authority can accept, at his discretion, other tangible security as may be deemed appropriate or a strong third party guarantee.
  • Paripassu/second charge
    In cases where it is proposed to obtain pari-passu/second charge over property held as security with another financing agency, administrative approval is required to be obtained from Head of country operation.
  • Delayed Mortgage
    • Wherever creation of mortgage is likely to be delayed because of payments on instalment basis, suitable security including third party guarantee or a Tri Partite Agreement executed between Bank, Party and the Developer may be taken for the interim period, as considered necessary by the sanctioning authority, besides obtaining an Agreement to mortgage. The mortgage should subsequently be created at the earliest.
    • Check-off facility, OR Third party guarantee for the loan amount.
      Post dated cheques to be obtained for the entire amount of the EMIs.
10. Processing fees : 1% of loan amount. The Branch In-Charge will have discretion to reduce the processing fees by up to 50%:
  • where bulk business is involved and a check off facility from a reputable employer is available.
  • during short period promotional drives.
  • considering the value of the customer.
11. Repayment : Normally the maximum tenor of the loan will be 20 years, however for business considerations it may be 25 years with prior approval of Country Head subject to age of the applicant will not cross 65 years at the end of the tenor. Normal repayment period is 240 months.
Normally repayment, i.e., EMI will commence from the month following the month when full disbursement has been made.
  • Where the borrower exercises the floating rate of interest option, should interest rates rise or fall during the currency of the loan, the EMI need not be increased/decreased. The net effect of interest fluctuations should normally be by way of increase or decrease in the number of installments.

    Refixing of EMI downwards may be permitted by the sanctioning authority for select customers, consequent upon increase/decrease in rates of interest, upon written request of the borrower in the under noted cases:

    • where bulk business is involved and a check off facility from a reputable employer is available.
    • where original housing loan was of Tk.5 lacs or more and the downward revision in the rate of interest is 1% or more as compared to the rate at which original loan was granted.
  • The facility of upward/ downward re-fixing of EMI can be granted only twice during the tenure of a loan.
  • Part payments or balloon payments would be permitted under both the options, i.e., fixed rate loans and floating rate loans. If 20% or more of the outstanding is prepaid in one instance the branch may re-fix the EMI downwards after establishing a fresh check-off facility or obtention of fresh post-dated cheques.
    Re-fixing of EMI upwards may be permitted, at the request of the customer, after establishing a fresh check-off facility or obtention of fresh post-dated cheques.
12. Documentation : Standard documents for Housing loans.
13. Mode Of Disbursement : Amount will be disbursed with the progress of construction work after ensuring the borrower’s own investment.
14. Discretionary Powers : To be exercised as per the Delegation of Powers.
15. Special features :
  • Prepayment Penalty
    No prepayment penalty will be charged if loan is prepaid due to excess availability of fund.
    A prepayment charge of 1% of the amount prepaid will be levied when the loan is pre-closed for reasons of takeover by any other bank/financial institution.
  • Commission to the marketing personnel
    Commission to the marketing personnel of different apartment developers may be given @ 0.25% of loan amount upto a maximum of Tk 5000.00 depending on the amount of the housing loan.
16. Credit Customer may default in repaying the loan A minimum upfront margin of 30% is being maintained. The House/ flat financed out of Bank finance is registered mortgaged in favour of SBI with the respective sub-registrar office. In case of default the House can be seized and auctioned for recovery.
17. Interest Rate Interest rate fluctuations Floating Interest rates linked with prime lending rates. In case of fixed interest rate margin over PLR is kept high and as such the NIM is high ab initio.

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