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Home Loan

SIB offers easy home loans to all its customers, thus enabling them to purchase a house of their dreams. The bank issues SIB Housing loans at low SIB Home loans interest rate, easy documentation, and quick approval approach.


Key features of south Indian Bank Home Loan:
 

  • The bank extends Home loans to all salaried, non-salaried, self-employed professionals, agriculturists; NRI’S and even senior citizens.
  • These loans are available for the purpose of purchase of ready to occupy houses or flats or villas, construction of flats or villas, plots available for construction of flats or houses, construction, improvement, repairs or renovation of existing homes, making extensions or enlargements to existing housing premises, takeover of existing house loans and also for reimbursement of any kind of expenses made towards the applicant’s residential house.
  • The home loan offers a standard rate of interest, irrespective of the applicant’s age, the amount of loan, purpose of the loan. The bank issues loans under floating rate of interest linked to the existing base rate. Any change in the base rate structure has a direct effect on the home loan rate. An increase in the base rate will lead to an increase in the home loan rate and a decrease in the base rate structure will lead to a decrease in the loan rate. The bank cannot offer loans below existing base rate.
  • The bank provides home loans with a variety of repayment options. The SIB Home loan repayment structure is not rigid. The applicant can also apply for a SIB Limited Home loan for a repayment period crossing his retirement age.
  • The bank has a margin requirement ranging from 10 % to 25% in order to issue the SIB Limited Home loan.
  • The bank also allows for a moratorium period or repayment holiday period of 3 to 36 months in certain cases. No South Indian Bank Home Loan EMI payment has to be done during this period, however, the interest due has to be serviced on a monthly basis.
  • The bank levies upfront charges amounting up to a maximum of Rs.10000 on the SIB Limited Home loan
  • The residential property being purchased with the help of the bank’s funds has to be kept as a primary security with the bank in order to avail loans.
  • The spouse of the applicant has to be introduced as a co-borrower of the SIB Limited Home loan.
  • The bank may also demand for a third party guarantee. However, this is applicable only in cases where the third party’s income is being considered while determining the SIB Home loan eligibility of the applicant.
  • The bank has no upper limit fixed for loans that it issues.
  • The bank levies certain Annual percentage rate on all loans that it issues. Annual percentage Rate (APR) represents the total cost which might have to be borne by the applicant in order to avail loan with the bank. It’s a onetime charge. The current APR of the bank is fixed at 0.49% of the sanctioned loan amount + Property valuation charges + LSR fee extra.

The South Indian bank offers home loans to various applicants. However, the eligible loan amount and the repayment tenure vary from individual to individual depending upon the applicant’s job profile.


South Indian Bank Décor Loan
 

This is a South Indian Bank housing loan scheme offered by South Indian Bank which can be used for a dual purpose, i.e. for buying consumer goods and also for renovating or furnishing the house availed from a home loan. The features of the home loan offered by SIB are as follows:
 

  • Loans offered by South Indian Bank are for those individuals who have already availed of a home loan from South Indian Bank
  • The applicant of the home loan from SIB Limited should be the owner of the property of the SIB housing loans. the spouse or any other income earning person should act as a co-borrower or guarantor of the SIB Ltd. Home loan
  • New SIB Ltd. home loan borrowers of the bank can avail the loan for buying consumer goods, or for furnishing the existing house, or a combination of both. For existing South Indian Bank Home loan borrowers this home loan available at South Indian Bank is for replacing any of the consumer durables in an existing house property
  • The actual cost of the items would be offered as a loan subject to margin requirements. the minimum and the maximum amounts are Rs.50, 000 and Rs.10 lakhs respectively
  • A primary security of hypothecating the assets purchased would be required and as a collateral security, an undertaking by all the property owners secured to the bank stating that the South Indian Bank Home loan availed would not be released from the bank during the loan tenure of this loan
  • The margin is 25% and the South Indian Bank Home loan is to be repaid within 84 months.
  • There is no loan processing fee payable under the South Indian Bank Home loan
  • SIB Limited Home Loan interest rates applicable is one-year MCLR + 3%

Rate of interest

The bank currently issues home loans to all applicants at 1 year MCLR (9.85% as of August, 2016).


In Case of salaried applicants:
 

  • Individuals working with reputed MNC’S, government organizations, whether central or state-based and employees of IT industry and other such related organizations are eligible for a loan with the bank.
  • However, the maximum amount of loan to be sanctioned under this category is dependent upon the net monthly income of the individual. An applicant falling under this category can avail loans amounting up to 60 times of their net monthly income.
  • Repayment Period: The repayment period of the loan is set at a maximum of 30 years, i.e. the applicant has to pay off the entire loan within a period of 30 years. However, it has to be kept in mind that the age of the applicant at the time of maturity of the loan should not exceed 75 years. It means that the entire loan has to be paid in full before the applicant reaches 75 years of age or the loan tenure has reached 30 years.

In Case of Senior Citizens:


This loan can be availed by pensioners or by HNI’s without a pension. However, the maximum amount of loan to be sanctioned under this category is dependent upon the applicant’s monthly pension and his gross total income. An applicant falling under this category can avail loans amounting up to 60 times of his monthly pension or up to 5 times of his gross total income. Repayment Period: The repayment period of the loan is set at a maximum of 20 years, i.e. the applicant has to pay off the entire loan within a period of 20 years. However, it has to be kept in mind that the age of the applicant at the time of maturity of the loan should not exceed 75 years. It means that the entire loan has to be paid in full before the applicant reaches 75 years of age or the tenure has reached 30 years.

 


In Case of Non-Resident Indians (NRI’S):
 

SIB NRI Home loan can be availed by all NRI’S either individually or jointly with an NRI or a resident spouse. However, the maximum amount of loan to be sanctioned under this category is dependent upon the average monthly remittance of the individual. An applicant falling under this category can avail loans amounting up to 50 times of his average monthly remittances. Repayment Period: The repayment period of the loan is set at a maximum of 20 years, i.e. the applicant has to pay off the entire loan within a period of 20 years. However, it has to be kept in mind that the age of the applicant at the time of maturity of the loan should not exceed 70 years. It means that the entire loan has to be paid in full before the applicant reaches 70 years of age or the tenure has reached 30 years.

 


In Case of Agriculturists:


People engaged agricultural activities and whose main source of income is agriculture are also eligible for a loan with the bank. However, the maximum amount of loan to be sanctioned under this category is dependent upon the average gross income of the individual. An applicant falling under this category can avail loans amounting up to 5 times of his average gross income. Repayment Period: The repayment period of the loan is set at a maximum of 30 years, i.e. the applicant has to pay off the entire loan within a period of 30 years. However, it has to be kept in mind that the age of the applicant at the time of maturity of the loan should not exceed 75 years. It means that the entire loan has to be paid in full before the applicant reaches 75 years of age or the tenure has reached 30 years.

 


In case Of Next Gen Applicants:
 

Self-employed professionals with a net monthly income of Rs.60000 are eligible for a loan with the bank. However, the maximum amount of loan to be sanctioned under this category is dependent upon the net monthly income of the individual. An applicant falling under this category can avail loans amounting up to 75 times of his net monthly income. Repayment Period: The repayment period of the loan is set at a maximum of 30 years, i.e. the applicant has to pay off the entire loan within a period of 30 years. However, it has to be kept in mind that the age of the applicant at the time of maturity of the loan should not exceed 60 years. It means that the entire loan has to be paid in full before the applicant reaches 60 years of age or the tenure has reached 30 years.

 


In Case of Business class applicants:


Individuals running a business of their own or self-employed non-professionals are eligible for a loan with the bank. However, the maximum amount of loan to be sanctioned under this category is dependent upon the average gross income of the individual. An applicant falling under this category can avail loans amounting up to 5 times of his average gross income as per his audited financials. Repayment Period: The repayment period of the loan is set at a maximum of 30 years, i.e. the applicant has to pay off the entire loan within a period of 30 years. However, it has to be kept in mind that the age of the applicant at the time of maturity of the loan should not exceed 75 years. It means that the entire loan has to be paid in full before the applicant reaches 75 years of age or the tenure has reached 30 years.

Service fee and Charges

The bank levies certain fee and charges on all home loan schemes that it issues. The list of the service fee and charge is given below:
 

  • Loan Processing Charges: The bank levies a processing charge ranging from 0.25% to 1 % of the sanctioned loan amount.
  • Prepayment Charges: The bank levies no prepayment charge. Prepayment is a facility offered by the bank, wherein, the applicant may opt to pay off the entire loan much before the stipulated loan period.
  • NO Due certificate: The bank also issues a due certificate, if required by the applicant. The bank levies no charge for issuance of a no due certificate.
  • Solvency certificate: The bank also issues solvency certificates if demanded by the customer at certain charges. The charges to be levied against issuance of such certificates depend on upon the amount of the sanctioned loan.
     
  • For loans amounting up to Rs.25000, the bank levies a solvency certificate issuance charge of Rs.100.
  • For loans lying between Rs.25000 to Rs.1 lakh, the bank levies a solvency certificate issuance charge of Rs.250
  • For loans lying between Rs.1 lakh and up to Rs.5 lakhs, the bank levies a solvency certificate issuance charge of Rs.500.
  • For loans lying between Rs 5 lakhs and up to Rs.10 lakhs, the bank levies a solvency certificate issuance charge of Rs.1000.
  • For loans above Rs.10 lakhs, the bank levies a solvency certificate issuance charge of Rs.100 per lakh and part thereof.
     
  • Charges for late payment/EMI Penal: An applicant must make sure to pay his EMI’S well on time. If he fails to do so, the bank levies an EMI penal fee standing at the rate of extra 2% over the existing rate to be charged from the date of the defaulted payment.
     
  • Charges for changing from fixed to floating rate type and vice versa: The bank does not allow for sweeping of interest rate methods. Once opted for a particular option, the applicant cannot switch to any other option.
     
  • CIBIL report: the bank may also issue a CIBIL report or any other credit information report to the borrower at their request. However, the bank will levy a charge of Rs.50 for the issuance of such reports.
     
  • Documentation Charges: These charges are levied at the time of disbursements and renewals of the loans. These charges are to be levied over and above all other fee and charges. The charges to be levied under this category depend on upon the amount of the sanctioned loan:
     
  • For loans amounting up to Rs.10000 and below, the bank levies a charge of Rs.100.
  • For loans lying between Rs.10000 to Rs.1 lakh, the bank levies a charge of Rs.250.
  • For loans lying between Rs.1 lakh to Rs.2.5 lakhs, the bank levies a charge of Rs.500.
  • For loans lying between Rs.2.5 lakhs to Rs.5 lakhs, the bank levies a charge of Rs.1000.
  • For loans lying between Rs.5 lakhs to Rs.50 lakhs, the bank levies a charge of Rs.2000.
  • For loans lying between Rs.50 lakhs to Rs.1 crore, the bank levies a charge of Rs.3000
  • For loans amounting above Rs.1 crore, the bank levies a charge of Rs.5000.
     
  • Property Valuation Charge: The charge to be levied against property valuation depends on upon the amount of the sanctioned loan.
     
  • For loans amounting up to Rs.5 lakhs and below, the bank levies a charge of Rs.500.
  • For loans lying between Rs.5 lakhs to Rs.10 lakhs, the bank levies a charge of Rs.1000.
  • For loans amounting above Rs.10 lakhs, the charge levied will be equivalent to the fee taken by the expert valuers.
  • Amendment Charges: the bank does not levy any charge if the amendments have to be done because of the bank’s mistake or any omissions have to be done from the bank’s end. However, if the same has to be done on a request by the borrower, the bank levies a certain charge for every such instance. The charge to be taken depends on upon the amount of home loans sanctioned. All expenses incurred out of the bank’s pocket in the form of telephone bills and fax charges have to be borne by the applicant.

  • For loans amounting up to Rs.5 lakhs and below, the bank does not levy any charge
  • For loans lying between Rs.5 lakhs to Rs.100 lakhs, the bank levies a charge ranging from a minimum of RS.1000 to a maximum of Rs.10000.
  • For loans amounting above Rs.100 lakhs, the bank levies a charge ranging from a minimum of RS.5000 to a maximum of Rs.50000.
     
  • Inspection Charges: The bank levies inspection charges against the inspection of the securities. The inspection charge depends on upon the amount of the loan sanctioned.
     
  • For South Indian Bank Home loan amounting up to Rs.25000 and below, the bank does not levy any charge.
  • For South Indian Bank Home loan lying between Rs.25000 to Rs.1 lakh, the bank levies a charge of Rs.50.
  • For South Indian Bank Home loan lying between Rs.1 lakh to Rs.2lakhs, the bank levies a charge of Rs.100.
  • For SIB Home loan lying between Rs.2 lakhs to Rs.5 lakhs, the bank levies a charge of Rs.150.
  • For SIB Home loan lying between Rs.5 lakhs to Rs.10 lakhs, the bank levies a charge of Rs.200.
  • For SIB Home loan lying between Rs.10 lakhs to Rs.25 lakhs, the bank levies a charge of Rs.300.
  • For SIB Home loans lying between Rs.25 lakhs to Rs.50 lakhs, the bank levies a charge of Rs.400.
  • For SIB home loans lying between Rs.50 lakhs to Rs.100 lakhs, the bank levies a charge of Rs.600.
  • For SIB Home loans lying between Rs.100 lakhs to Rs.500 lakhs, the bank levies a charge of Rs.800.
  • For loans lying between Rs.500 lakhs to Rs.1000 lakhs, the bank levies a charge of Rs.1000.
  • For loans amounting above Rs.1000 lakhs, the bank levies a charge of Rs.2000.
  • All expenses incurred out of the bank’s pocket in the form of traveling expenses have to be borne by the applicant.

South Indian Bank Home loan EMI Calculator

PaisaBazaar offers EMI calculator for the convenience of its applicant. The EMI calculator is a simple and handy tool that makes the financial planning of the applicant really easy. One may know how much saddle the upcoming loan EMI is going to put on their monthly budget. Any Interested applicant may login to www.paisabazaar.com. The applicant may select the EMI calculator and fill up the requisite details accordingly. Post-filling up the details such as Loan Amount, Rate of Interest and Tenure, the results would be prompt and the applicant may know the forthcoming EMI amount in case he/she applies for the personal Loan.

Methods of applying for SIB Housing Loan

Customers can apply for a SIB home loan simply as it can be done online on the Paisabazaar.com website which provides the online home loan application facility by which the applicant can easily apply for South Indian Bank home loans.
 

The applicant has to furnish his personal details like name, age, address, occupation, income, etc. which are used to match the home loan eligibility criteria laid down for availing Personal Loans. If the profile of the applicant matches the required home loan eligibility criteria, all the documentation process is completed and the applicant is required to submit the necessary documents for home loans as mentioned. After completing all the formalities, the loan would be issued. The website can also be accessed for enquiring about other details. The complete detail of the home loan along with its features, benefits, tenure, charge structure, the applicable rate of interest, the installment payable for a corresponding amount of loan, the eligibility requirements, the documents which are required to be submitted, etc. can be found out on the Paisabazaar.com website. This online portal is a virtual marketplace offering all types of loan products.