Standard chartered offers easy home loans to all its customers, thus enabling them to purchase a house of their dreams. Standard Chartered Ltd. Home Loan is issued at attractive features and the Standard Chartered bank home loan offers low interest rates, easy documentation and quick approval approach.
Standard Chartered HomeSaver Home Loan
Standard Chartered bank has introduced the facility of a HomeSaver Home Loan which enables the borrower to pay back his home loan within halved repayment tenure at half the cost. This facility of Standard Chartered Limited Home Loan provides the borrower to deposit his money, whether it is his salary income or any other type of income, and even withdraw it whenever the borrower needs without the incidence of any additional charges levied by the bank. This deposit or withdrawal of money can be conveniently conducted through a free ATM cum Debit Card. The loan under this category attracts interest on a daily reducing balance method and the interest rate is applied monthly.
This Standard Chartered Limited Home loan works by opening a linked Transaction Account which would be associated with the Home Loan Account. Any surplus accumulation in the linked Transaction Account would be used to offset the outstanding balance in the Home Loan Account thus enabling you to pay off your outstanding home loan faster and close the home loan account. Thus, the interest would be calculated and paid only on the difference between the outstanding amount of loan and the surplus funds of the borrower.
Top up loans:
A top up loan facility is a unique feature of Standard chartered bank, whereby, it enables a borrower to avail some extra funds through top up over and above their existing home loan with the bank. Through this facility, the home loan borrower is entitled to a top up loan amounting up to 100% of the original home loan amount. The extra funds can be used for decorations of the home or for purchase of luxury items. Basically, it helps an individual to decorate his/her home as per their desires. The loan can be availed for a loan tenure equivalent to the Standard Chartered Home Loan repayment period of the original loan.
A top up loan comes at a lower interest rate as compared to personal loans. Hence, the user can chose to opt for a top up loan for funding his/her personal needs of decorating their home, and save a lot of money on interest.
A top up loan also gives a borrower the flexibility of longer loan tenure as compared to a personal loan, thus saving him/her from huge monthly installments.
Standard Chartered NRI Home loan:
Standard chartered bank also extends home loans to its salaried NRI customers. These loans are extended to NRI’s at a onetime loan processing fee charge. It’s a multipurpose loan and can be used by the applicant for the purpose of purchase of flats or houses, plots or houses under construction, extension, renovation or re-decoration of existing houses.
Standard chartered bank also issues a variety of home insurance products linked to home loans. These products are directed towards safeguarding the applicant and his/her close ones from unforeseen incidences. The list of insurance products is given below.
Home loan protector:
It is a unique insurance product which protects the applicant’s family from the burden of repayment of the outstanding loan amount, in case of sudden death of the applicant.
Home protector is a unique combination of home content and property insurance. Home content insurance, insures the belongings of the applicant’s home, whereas, home property insures the applicant’s property from damage against natural calamities. The applicant can chose from a single component or from a combination of both.
Mortgage Redemption Term Assurance (MRTA):
MRTA protects the applicant’s family from the paying off the applicant’s debt in case of sudden demise of the applicant. This plan ensures insurance premium funding at the existing home loan rate.
HHP is an insurance product made out of the combination of the insurance for property, home contents and personal accident. Home content insurance takes care of the belongings of the applicant kept inside the home; insurance for property protects the applicant’s home from natural calamities whereas personal accident insurance protects the applicant’s family from the burden of payment in case of the applicant’s death and permanent terminal disability due to an accident. The applicant can choose a single insurance component or a combination of all.
- Standard Chartered Ltd. Home loan is issued to all salaried, non- salaried and self employed professionals.
- Home Loan from Standard Chartered Limited is available for the purpose of purchase of new houses, plots available for construction of flats/houses, construction or renovation of existing homes.
- The bank adopts the practice of charging semi fixed rate and variable interest rates.
- The Standard Chartered bank home loan amount to be sanctioned is decided depending upon the borrower’s repayment capacity and the city where the loan is being disbursed. However, the loan amount ranges from Rs.5 lakhs- Rs.10 crores.
- Standard Chartered bank offers sanctioning of a Standard Chartered Bank housing loan scheme for tenure of 5-20 years.
- The bank also provides refinancing options under the Standard Chartered Home loan transfer option, which allows the customer to transfer his existing home loan schemes in other banks to Standard chartered at comparatively lower interest rates. The bank also finances prepayment charges, at the customer’s will.
- Standard chartered bank home loans also give the applicant certain income tax benefits.
- It also gives its customer an option of applying for top up loans linked to the applicant’s current Standard Chartered bank home loan.
- The interest on Standard chartered home loans is calculated on daily reducing balance method and charged monthly.
- The bank also provides the facility of adding a co applicant while they apply for a Standard Chartered Home loan.
- The Co-applicants can be the applicant’s parents, spouse or even children above the age of 18 years, siblings (only if they are co owners of the property in question).
- The applicant may also include proprietor concerns, partnership firms, and pvt. Ltd companies, and closely held limited companies as co-applicants.
- The bank charges certain processing fee at the time of application of the Standard Chartered Limited Home loan. This fee is non-refundable. However, if the bank is unable to process the Standard Chartered bank home loan request, then the bank refunds the processing fee after deduction of RS.2000 from the amount.
- Generally, the Standard Chartered Limited Home loan is sanctioned within a period of 5 working days after the submission of the relevant documents for Standard Chartered bank home loan.
- Repayment of the Standard Chartered Limited Home loan can be done through ECS or standing instructions on the customers SC account.
The bank also gives its customers the option to change its interest rate from fixed to variable or from variable to fixed rate. However, this facility is chargeable.
Key features of Standard Chartered NRI home loan:
- This loan is extended only to salaried NRI’S.
- A co-applicant for availing a home loan is mandatory.
- In case of a married applicant, the spouse has to shown as a co-applicant of the loan. In case of an unmarried applicant, either of the applicant’s parents or brother, residing in the same city where the loan disbursing Standard chartered branch is located, has to be shown as a co-applicant.
- A local General power of Attorney (GPOA) holder, residing in the same city where the loan is being processed is required. However, the GPOA holder can either be the co-applicant or the co-applicant’s close relative.
- The loan repayment period ranges from a minimum period of 5 years to a maximum period of 15 years.
- The applicant can also apply for Standard Chartered Bank Home Loans through the bank’s refinancing facility and the Homesaver facility.
- A processing fee varying from 0.50% -1.50% of the sanctioned loan amount is charged, in case of an NRI home loan. However, these charges depend upon the type of the loan scheme opted for.
- Generally, the loan is sanctioned within a period of 5 working days after the submission of the relevant documents.
- Repayment of the loan can be done through Electronic Clearing Systems (ECS), Post-dated cheques (PDC’S) or standing instructions on the customers SC account.
- The bank also gives its NRI applicants the option of changing the Standard Chartered Home Loans interest rate type from fixed to variable or from variable to fixed type at a minimal charge standing at 1.5% of the principal outstanding at time of switch.
- The bank allows for the top up facility only after the applicant has completed a minimum of six months of repayment i.e. only after a minimum of six EMI’s towards payment of the loan amount has been done.
- The bank also allows for part prepayments for an NRI applicant. However, this facility can be availed only after completion of six months from the payment of the first Standard Chartered Bank Home Loan EMI.
The interest rate on the home loan from Standard Chartered Bank is charged by the bank depending either on the existing base rate of the bank or on the Mortgage variable reference rate.
Standard chartered bank decides the base rate keeping in mind, the cost of the current and savings account (CASA) along with the 6-9 months term deposit rate, and other factors which are common amongst all of the bank’s loan customers. The existing bank rate of the bank stands at 9.75% p.a.
The bank, depending upon various factors such as the credit worthiness of the customer, the quality of the property being kept as collateral, nature of the applicant’s business and the risks involved in the operating sector, account behavior, relationship with the bank, costs and other related factors, decides the percentage of margin to be kept in between the variable rate of interest and the base rate. The margin may fluctuate according to the changes in these factors.
Mortgage Variable Reference Rate:
In case of floating rate of interest term loans, the Standard Chartered Housing loans interest is directly linked to the Mortgage variable Reference Rate (MVRR). The interest rate is impacted due to a revision in the MVRR. The current MVRR of the bank stands at 19.75% for Standard Chartered housing loans.
Standard Chartered Limited Home Loan Interest rates:
The bank charges a variable rate of interest standing at 9.75% p.a. in cases of Home loans normal under the category of variable rates (for loans amounting toRs.50 lakhs and below) and semi fixed rate home loans.
In Case of home loans Homesaver ( loans amounting toRs.50 lakhs and below), it charges an interest rate of 9.85% and in cases of top loan amounting to more than 100% of the existing loan amount, it charges an interest of 10.25%.
The bank levies certain fees and charges on all the loans that it issues from applicants who fulfill the home loan eligibility criteria. Given below is the detailed list of the charges:
- Processing Fees: The bank charges a processing fee of Rs.2500 for a loan amounting to less than Rs.25 lakhs and a loan processing fee standing at the rate of 1%of the amount of the home loans sanctioned, in case of loans amounting to more than Rs.25 lakhs.
The processing fee is same as above in case of – homesaver home loan available at Standard Chartered Bank
- Pre-closure Fees: The bank does not levy any pre closure charges on floating rate of interest loans extended to individuals. However, for all other types of Standard Chartered bank home loan it charges an interest of 4% on the principal outstanding amount i.e. the outstanding amount at the time of closure along with the amount part prepaid in the given calendar year.
The rate for pre closure remains the same in case of home loan-homesaver.
- Part-prepayment fees: The bank does not levy any pre closure charges on floating rate of interest loans extended to individuals. In case of other mortgage loans, the bank allows free part prepayments for loans amounting to less than 25% of the outstanding loan amount in a given calendar year. However, for loans exceeding 25% of the principal outstanding loan amount in a given calendar year, the borrower has to bear a part prepayment charge standing at 2.5% of the entire amount being prepaid. Principal outstanding refers to the outstanding amount at the time of closure along with the amount part prepaid in the given calendar year.
The rate for part prepayment is same in the case of home loan-Homesaver.
- CERSAI Fee: The bank charges Rs. 500 against this service, in case of both normal Standard Chartered bank home loan as well as home loan-homesaver.
- Annual Fees: Not applicable in case of Standard Chartered bank Home Loan.
- EMI Cheque Bounce Charges: the bank levies a penalty of RS.495 per instance of cheque dishonor. Applicable to both, normal Standard Chartered bank home loan and home loan -homesaver.
- Penal interest: This charges stands at 24% p.a in both the cases, i.e normal home loans and home loan -homesaver
- Document Retrieval charges: The bank charges Rs.300 for retrieval of property documents and its photocopies. Applicable to both the cases.
- ATM usage/Cash withdrawal charges: Not applicable in case of normal home loans. However, in case of home loans-homesaver, a charge of RS.140 per transaction for usage of the card in ATM’S outside India, as per RBI guidelines will be levied. The bank levies no charge for usage of card in ATM’s in India.
- Debit card Fee: No charge in case of normal home loans. AN annual charge of RS.200 per debit card will be levied for every home loan- homesaver.
- Monthly statement: The bank issues a monthly statement of the borrower’s loan accounts for free.
- Multicity Cheque book: Not applicable in case of normal home loans. However, in case of home loans-homesaver, a charge of Rs.225 per cheque book containing 25 cheques will be levied.
- Cheque Return charges: Not applicable in case of normal home loans. However, in case of home loans-homesaver, a charge of Rs.500 for every cheque return instance will be levied.
- Stop Payment charges: Not applicable in case of normal home loans. However, in case home loans-homesaver, a charge of Rs.125 for every stop payment of a single cheque and Rs.225 for a range of cheques will be levied.
- Switch Fees: These charge stands at 0.75% of the principal outstanding loan amount, in both the cases, i.e. normal home loans and home loan- homesaver
- Conversion Fees: These charge stands at 1.50% of the principal outstanding loan amount, in both the cases, i.e. normal home loans and home loan - homesaver.
- Doorstep Banking: Not applicable in case of normal home loans. This facility is available in select few cities for individuals wishing to apply under homesaver plan.
Apart from the above mentioned charges, an applicant has to keep in mind that
- The above mentioned charges are exclusive of service tax. S.T and other statutory levies as applicable will be charged above the mentioned charges.
- Extra services, not mentioned in the above provided list will be rendered at an extra charge.
- Conversion fee is applicable in case of changes from fixed rate to floating rate and from home saver to home loan.
- Switch fee is applicable only to variable rate borrowers.
Applicants meeting the Standard Chartered Home Loan eligibility criteria are required to submit the following documents for completing the home loan application process:
- Identity Proof: Copy of Passport / Voter ID card / Driving License/Employer’s issued photo ID. For Ration card without photograph, a separate verification proof is necessary. Any one of the document can be submitted as a valid Identity Proof because all the listed documents have the individual’s photograph along with his or her name against the photograph proving the identity of the applicant.
- Address Proof – Copy of Ration Card / Electricity or Telephone Bill / Rental Agreement / Credit card statements/Passport. The applicant needs to submit any one of the afore-mentioned documents which state the correct address of the applicant needed for the verification process of the bank. However, the documents should not be more than 3 months old.
- Signature proof: PAN card/Driver’s license/Passport copy/Banker’s attestation Bank account statements/IPC cheque of more than Rs.10000. Any one of the document can be submitted. However, the applicant’s signature in the provided document should be clear and understandable. The applicant needs to maintain the same signature throughout the loan period.
- Date of Birth Proof: Class 10th certificate/PAN card/Birth certificate/Voter’s ID, any one of the document is required. These documents state the exact age of the applicant, helping the bank confirm to its age limit factor. Required in case of all the applicants.
The above mentioned documents are required in the case of all the applicants. However, along with the said documents few more additional documents are required depending upon the profession of the applicant. The list of documents and the respective business profile is given below.
Additional KYC documents
Notarized GPOA/Copy of CDC and Mariner declaration/
Indian Passports/Overseas employment cards issued by the residing country’s employer. (Only required if the applicant is an NRI)
If a PIO, then a valid foreign passport/ national Id card/ Overseas Driver’s license/ Social security card (issuance of the card should be only from US, UK & Canada) is required.
CPR card for Bahrain applicants.
Pvt. Ltd Companies
Office address proof- Copy of latest utility bill/ Rental or lease agreement copy along with a valid copy of utility bill in the name of the landlord/ Last 6 months current account statement.
Shop and establishment certificate/Sales tax registration certificate/ Factory registration certificate/ SEBI registration certificate/ Form 18 And ROC Receipt.
Annual return copy with ROC or Form 32/ original copy of certificate of incorporation/ Copy of MoA/AoA.
Address proof, id proof and signature proof all the shareholders holding more than 20% individual shares in the company.
Office address proof- Copy of latest utility bill/ Rental or lease agreement copy along with a valid copy of utility bill in the name of the landlord/ Last 6 months current account statement.
Shop and establishment certificate/ sales tax registration certificate/ Factory registration certificate/ SEBI registration certificate/ Form 18 And ROC Receipt/ Utility bill in the name of the firm or landlord along with a rental agreement, to be used as secondary address proof or operating address proof for no face to face and operating proof in case of face to face.
Address proof, id proof and signature proof all the partners holding more than 20% individual shares in the company.
Loan repayment Options
Loans offered by Standard Chartered Bank can be paid through the Bill Desk of the Bank. He would have to follow the below-mentioned steps for the repayment.
- He should enter his 8-digit loan account number twice followed by the borrower’s name and the payment amount against the outstanding loan account.
- He should them choose the bank from which the payment is being made and make the payment following the online payment protocol.
This payment made is solely for paying the arrears of the loan. No part-payments or closure payments would be allowed to be paid and any excess paid towards the loan arrears would be refunded by the bank