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Home Loan

Saraswat Bank Vastu Siddhi Home Loan provides loan to individuals to meet their housing needs at attractive rates of interest.


Sajawat Home Loan Scheme


Sajawat Home loan is a very different and unique loan scheme offered by Saraswat Bank to the customers. Its main objective is to cater to all the financial home related needs and requirements of the customers that might arise during repairing the house or renovating the same. The process of renovation and repairs is not an easy task and it involves a lot of liquid cash to be with the customer. Thus, it becomes quite essential on the part of the customer to opt for such type of loan that will fulfill all the financial needs of the applicant that might arise while renovating and repairing the housing abode of the customer. But again, not all persons can apply for this type of unique loan offered by Saraswat Bank. This type of home loan is only offered to certain individuals who has continuously and without fail repaid the Vastu Siddhi home loans from the past three years. The different features of Sajawat home loans are as follows:
 

  • The limit on this type of loan is fixed at a maximum of Rs.5 lacs. The loan limit should not exceed this limit. Thus, individuals can avail a maximum loan of Rs.5 lakhs under the scheme.
  • The tenure of repayment of loan to the Guarantor should not exceed 60 months by the borrower.
  • The rate of Interest on Sajawat Home Loans scheme is computed on a fixed rate basis. It is fixed at 12.50% and is calculated on a yearly basis.
  • In case of basis of advance, the amount of loan is equal to the number of repayments done in Vastu Siddhi loans and that amount is fixed at a maximum of Rs. 5 lac. This repayment should not exceed the mentioned amount.
  • For salaried individuals, the amount of loan that includes the total outstanding loan under Vastu Siddhi home loan scheme should not be more than 60 times of the average computed net salary of the person who is applying for the loan.
  • In case of businessmen, the loan amount can be 4 times of the calculated average net cash accumulated or between the above mentioned pointers whichever is lower.
  • Sajawat Home Loan scheme requires certain charges in order to process the loan method. That charge equals to 0.50% of the total amount of loan applied by the applicant.
  • In order to acquire this loan, the applicant is required to secure certain things in the form of collateral to the bank. That security is generally the total measure of the charge in order to cover the loan amount completely.
  • In order to apply for Sajawat home loans, the applicant is supposed to submit a host of different types of documents that are specified by the bank to the applicant. These documents are as follows:
  • Completely and fully filled up form of loan application by the applicant.
  • Photograph identification of the applicant and the guarantor.
  • Affidavit of the place or residence of both the borrower and the guarantor.
  • In case of salaried individuals, a certification or proof of income is required. That should be in the form of salary slips of the previous 3 months and also the ITR or form 16 that took place in the last 3 years.
  • In case of businessmen, professionals and self-employed personals, the profit and loss account, an authentic balance sheet, ITR and Bank Statement for the last 3 years is required to be submitted by the applicant to the bank.
  • In case of any kind of renovations that is supposed to take place in the home of the applicant, he is required to submit an authentic affidavit of the work of renovation about to be done.

Saraswat Bank NRI Home Loans

Saraswat Bank Vastu Siddhi Home Loan


The Saraswat Bank Vastu Siddhi home loans offers home loans to an Indian who is not residing in India or a NRI or to a person who is born in India but is living overseas. This loan is offered to acquire a place to reside or a residential abode. These loans can be acquired very easily but they are subjected to certain terms and conditions. These rules are as follows:
 

  • The measure of loan, loan repayment period and the total margin of the money should be equal with the rules that are applied to a housing finance offered to a person staying in India.
  • To acquire this loan, the person is required to secure something as collateral. That security should be an ethical     and legitimate contract of the property that is suggested to be acquired and if required a true measure of the borrower’s assets that is in India.
  • The borrower is required to pay certain additional charges for the loan. The installments on the loan, interests on the loan and other miscellaneous fees is charged by transferring money from overseas in the form of normal banking channels or through the funds kept by him in his NRE/FCNR/NRO accounts that are in India. Again, the funds can also be acquired out of income of rents from renting out the asset that was taken up by the usage of loan.
  • The rate of interest for this home loan is based on the directives that were issued by the Reserve Bank of India.
  • The loan is repaid by new incoming remittances that take place overseas with the help of normal channels related to banking. Locally, the transfers take place in the form of NRE/FCNR/NRO accounts held by the borrower.
  • Apart from the borrower, in Housing Loan case, the close and immediate relatives or family members defined under Section 6 of the Companies Act 1956 residing in India are permitted to repay the installments made on such types of loans. They are also supposed to bear the interest and other miscellaneous charges if any do take place and through their account in the bank directly to the borrower’s account of loan that he has with the bank.
     
  • Eligibility : Any individual whether he is a salaried employee, a businessman, a professional or a self-employed individual can apply for the housing loan scheme of the bank

Rate of interest

The current Prime Lending Rate of the bank is 14.25% per annum and the rate of interest charged on the loan depends on the amount of loan availed. A floating rate of interest is charged on the loan which is currently a minimum of 9.50% per annum irrespective of the amount of loan taken.

Documents required

  • The application form for the home loan which should be duly filled
  • Photo Identity proof of the applicant and the guarantor
  • Address proof of the applicant and the guarantor
  • Income proof of salaried individuals which could be the salary slips of the last 3 months, Income Tax Returns or Form 16 of the last 3 years
  • Income proof of the businessmen, professionals or self-employed individuals which is the Profit and Loss Account, Balance Sheet and Income Tax Returns of the last 3 years. The bank statements of the last 3 months would also be required.
  • Corresponding legal documents to create a mortgage on the property.

Additional Features of Saraswat Home loan

  • The loan can be taken for all relevant housing needs like construction of own house, purchase of an already built house, flat, resale flat or for takeover of existing home loans from other institutions.
  • Loans up to Rs.70 lakhs can be taken in this category as the maximum
  • The basis of loan advance would depend on the quantum of loan sought and on the lower of the cost of project or income. For loans up to Rs.25 lakhs, amount which is lower either 85% of the cost of the flat plus stamp duty and registration charges or the cost of land and construction thereon or 60 times the average net take home salary of the applicant if employed or 5 times the average net cash accruals if self-employed would be granted. For loans over Rs.25 lakhs, lower of the above parameters would be granted only 80% of the cost of flat would be taken and not 85%.
  • Salaried individuals get maximum repayment tenure of 20 years and can also avail a moratorium period or a repayment holiday. Self-employed individuals would however not get the holiday and the maximum tenure allowed to them would be 15 years
  • For loans up to Rs.25 lakhs, Rs.5000 would be payable as the processing fee. Loans valuing more than Rs.25 lakhs and up to Rs.50 lakhs would attract a processing fee of Rs.15, 000 which would increase to Rs.25, 000 if the value of the loan exceeds Rs.50 lakhs
  • The shareholding under the loan would be 2.50% of the loan amount to a maximum of Rs.25, 000
  • The equitable or legal mortgage of the house to be purchased using the loan would be the security under the loan
  • A top up loan can also be availed by borrowers of the home loan scheme. A maximum amount of Rs.25 lakhs would be allowed as a top-up loan which should be repaid within 7 years
  • If the loan is taken for the construction of a house then the cost of the land must not be higher than 65% of the total cost of the project and the construction should be completed within 24 months

Applying for the home loan

The bank grants the facility of online application for home loan products. On the Paisabazaar.com webpage, there is an option of ‘Home Loan’. When the option is clicked, a new window opens up which is a request form from the bank and it asks for some compulsory information of the customer. The information required is basically the personal details of the customer like his name, address, occupation, age contact number, nearest branch, and the loan details. Filling up this form and submitting it online would create an online loan request and the bank would then get in touch with the applicant.


The applicant can also calculate his EMIs which would be payable under the different home loan scheme through our Paisabazaar.com webpage as the portal also provides the facility of online EMI calculation.