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Home Loan

The State Bank of Bikaner and Jaipur (SBBJ) is a major Indian bank with approximately 1360 branches, most of which are located in Rajasthan. The State Bank of Bikaner and Jaipur is the result of a merger between the banks of Bikaner and Jaipur in 1963 and is a subsidiary of SBI, otherwise known as the State Bank of India. SBBJ offers a variety of services and products, amongst which home loan schemes are offered. The SBBJ Home Loan is issued for sundry reasons ranging from the simple purchase of a plot of land to construction or renovation of a house.


Range of Products SBBJ Home Loan offers
 

State Bank of Bikaner and Jaipur offers its home loans for sundry requirements of its customers. There are different categories of home loans that are offered by SBBJ that fulfill the needs of different sets of people and purposes.  Below are some details of the SBBJ Home Loans:
 

  • SBBJ Home Loan: this is standard home loans that are issued for customers wishing to buy or construct a house. If a customer wishes to buy an already existing house or flat, it is understood by the bank that house or flat will be a brand new one or one that has been occupied and owned previously. Customers who want to finance the improvement and refurbishing of their existing flat or house may use this home loan. SBBJ allows its customers to avail their home loan under a single name of jointly under two or more names.
  • SBBJ Realty: this loan is provided to give the loan applicant the opportunity to purchase a plot. Under this loan, the construction of the house needs to start within two years from the date of disbursement of the loan.
  • SBBJ Maxgain: is a home loan that is sanctioned as an Overdraft with added flexibility to operate the Home Loan Account like a savings bank account or current account. For this purpose, the bank provides cheque book and net banking facilities. With this loan, customers can park their surplus savings or funds in the SBBJ Maxgain account. They may withdraw these funds whenever required. The minimum loan amount that is available under this loan is Rs.20 lakhs while there is no upper limit.
  • SBBJ Flexi Housing Loan: this loan is for loan applicants who wish to opt for a combination of Fixed and Floating interest rates in a pre-determined ratio. The loan applicant gets an irrevocable option to select from three combinations of fixed and floating rates. The maximum loan tenure is 25 years and up to a maximum age of 70 years. The minimum loan amount is Rs.5 lakhs. For loan amounts of Rs.75 lakhs and above, the interest rate will be floating rate only.
  • SBBJ NRI Home Loan:this home loan is aimed at Non-Resident Indians wishing to build a house or wishing to renovate an existing flat or house. Non Resident Indians with valid Indian Passports or those of Indian origin holding a passport of other countries may avail this home loan. However, if the person is of Indian origin but holds a passport of countries such as Pakistan, Iran, Bangladesh, Afghanistan, Bhutan, Sri Lanka, Nepal, and China, are not eligible for the State Bank of Bikaner and Jaipur NRI Housing Loan Scheme.
  • Earnest Money Deposit Scheme for Purchase of Land or House – this loan scheme is provided to the borrower so that he might utilize the funds to book a residential plot or a built of house which is sold by Government agencies and the projects are approved by the bank. Individuals who are above the age of 21 years can apply for SBBJ Home loans if they have a steady source of income from gainful employment or business. The amount of loan that the bank would grant would be lower than 90% of the application money required for the booking, 15 times the Net Monthly Income of the borrower, 10% of the value of house, plot or flat or Rs.5 lakhs. In case of the income criterion, if the application is made in joint names, the income of all the applicants can be considered for computing the eligible quantum of loan. The bank would maintain a margin requirement of 10%. A third party guarantee or collateral tangible security is required to avail of this loan. The sanctioning authority of the bank might also waive the requirement of a third party guarantee if an applicant is a customer of the bank for past 5 years and he/she is also eligible for this loan scheme.
  • SBBJ Home Cash – another form or loan facility which provides a multipurpose loan to existing SBBJ housing loan customers where they can avail additional funds from this loan facility. The loan availed can be used for extension or repair of the house, personal expenses of the family members of borrower, funding education, buying a car or taking a vacation and other related activities. Existing home loan customers of the bank who have made regular repayments of the home loan instalments for at least past one year and also have a running Savings Account or Current Account with the bank are eligible for availing this loan facility. The quantum of loan would be decided by the value of the house property after making two different adjustments. The margin requirement of 25% and present amount of the outstanding home loan account balance would be deducted to arrive at the allowable quantum of loan to applicants. The absolute minimum and maximum values of the loan amount are Rs.25, 000 and Rs.10 lakhs respectively. The ration of the Equated Monthly Instalments payable under the loan and the Net Monthly Income of borrower should not be higher than 60%. The bank does not require any margin for issuing this loan. The repayment tenure can be taken as the remaining tenure of the housing loan already taken from the bank up to a maximum of 120 instalments over 120 months. The mortgage on the house property done for availing the housing loan would have to be extended for this loan. Though, this can be waived by the bank on request of borrower. A loan processing fee of 0.60% of the loan amount sanctioned subject to a minimum of Rs.500 would be payable by the applicant while applying for SBBJ Housing loan.

Additional Features of the SBBJ Home Loans

Home loans offered by State Bank of Bikaner and Jaipur have various features, which are mentioned below:
 

  • This loan may be availed by people between the ages of twenty-one years and sixty years. The loan will be sanctioned to those applicants who have been earning a fixed regular income for the previous three years from a reputed company. Self-employed professionals and businesspersons may avail this loan if they can provide proof of their business or work for three years or more in their respective field of activity or business.
  • The SBBJ Home loan repayment tenure is up to 30 years. Therefore the borrower has up to 30 years to repay his or her loan. It can be noted that longer repayment tenures equal lower EMIs as the requisite installments are spread out over a longer range of time. Shorter repayment terms equal higher EMIs. The borrower is left to choose the length of the loan tenure that is most convenient and affordable for him or her. Whatever term the borrower chooses he or she has to complete the repayment of the home loan available at SBBJ before reaching 70 years old.
  • There is no ceiling limit on the loan amount provided by the SBBJ Home Loans; it is dependent on the income and repayment capabilities of the loan applicant. For a yearly income up to Rs.2 lakhs, the EMI/NMI (Equated Monthly Installments/Net Monthly Income) will not exceed 40%. For loan applicants whose income falls between the Rs.2 lakh to Rs.5 lakhs bracket, the EMI/NMI will not exceed 50%. For loan applicants whose yearly income is Rs.5 lakhs and above, the EMI/NMI will not exceed 55%.  The income of two of the following can be clubbed - spouse/son/daughter. For businesspersons, the loan amount will be considered on the basis of sales, if the loan amount is more than Rs.2 lakhs.
  • The margin of this loan is as follows – for a loan up to Rs.1 crore it is 20%, for a loan of above Rs.1 crore it is 25%.
  • The State Bank of Bikaner and Jaipur will accept the mortgage on the property that the customer wishes to buy, construct or renovate, as a form of security. In the event that the customer is unable to mortgage the property for any reason, the State Bank of Bikaner and Jaipur is willing to accept any other form of tangible security. It is required for the property to be in the loan applicant’s name or held jointly with a spouse who will be considered as the co-applicant. The loan applicant should have a comprehensive insurance on the property that he or she is buying for adequate value. The loan applicants’ spouse/daughter/ son may act as guarantors if their income is clubbed. State Bank of Bikaner and Jaipur may request for additional security while construction of the house is underway. The loan applicant may provide this additional security in the form of some tangible security or guarantees from sound individuals.
  • The State Bank of Bikaner and Jaipur may provide an in-principal approval for the home loan based on the loan applicants’ income and his or her capacity for repayment, prior to the loan applicant choosing  a flat/house/plot that he or she will purchase. There is a validity of three months for this in-principal approval.
  • The SBBJ Home Loan can be sanctioned within a short period of time so long as the loan applicant provides all the necessary documents for home loans.
  • The following documents will need to be provided for availing the SBBJ Home Loan
  • Xerox of Passport / Voter ID card / Driving License. Any one of these documents serves as a valid Identity Proof because they have the individual’s photograph and the name against it, proving the identity of the applicant.
  • Xerox of Ration Card / Rental Agreement /Electricity or Telephone Bill / Passport. Any one of the afore-mentioned documents serves as a valid address proof that is required for the verification process of the bank.
  • Latest Salary Slip or current dated Salary Certificate with latest Form 16, used by the bank to legally depict the current net salary of the individual and to check whether it matches the level of minimum net monthly income as laid down in the home loan eligibility criteria checklist.
  • Previous 3 months’ bank statement or last 6 months’ bank passbook. These documents provide verification for the applicant’s income status prior to making the application for loan, which also depicts the individual’s financial picture depicting the credit worthiness of the person.
     
    • Agreement for sale of house/flat or the proof of membership (for co-operative societies)
    • Estimates for construction and valuation report for acquisition/legal opinion on the property from a bank approved engineer or lawyer.
    • A cheque with the loan processing fees amount.
  • The State Bank of Bikaner and Jaipur will consider taking over the home loan from another bank on the condition that the loan applicant has taken the possession of the house, the existing repayment of the loan has already commenced and that the account is regular.
  • Resident Indians are eligible for tax benefits on the principal and interest components of SBBJ housing loan.                
  • The benefits of a State Bank of Bikaner and Jaipur Home loan is as follows
     
    • Doorstep Service
    • Easy eligibility criteria for businesspersons
    • Quick and easy paperwork, with minimal or no harassment
    • Interest rates that are cheap and competitive by current market standards
    • Faster turnaround period

Checking SBBJ Home Loan Eligibility


An applicant who is desirous of availing a Home Loan from the bank first needs to be eligible for the loan as per the bank’s requirements. Checking the eligibility has been greatly simplified by the bank, where the prospective client can visit the website of Paisabazaar.com and check his eligibility.

SBBJ Home Loans Interest Rates

The SBBJ Home Loan is offered at a very low rate which is linked to the bank’s MCLR Rate. The MCLR rate is 9.10% which is also the applicable SBBJ Home loan interest rate.
 

  • SBBJ Home Loan Applicable Charges

Description of Charges

SBBJ Home Loans

Pre-payment charges

Processing charges:

Up to Rs. 25,000

Above Rs. 25,000

Nil

 

Nil

0.25% of the loan amount

(Minimum – Rs. 500

Maximum – Rs. 10,000)

Why should customers opt for State Bank of Bikaner and Jaipur Home Loans?

Customers will find that opting for a home loan from the State Bank of Bikaner and Jaipur is one of their wisest choices, as they will face very little trouble in home loan application process. With zero hidden charges, competitive interest rates, and an efficient staff employed by SBBJ, the entire process is quite smooth and fast. A home loan repayment tenure that is flexible in nature and the ensured safekeeping of the customers’ documents all go a long way in maintaining the customers’ peace of mind.
 

  • How to apply for SBBJ Home loan schemes

At present, the State Bank of Bikaner and Jaipur can be applied online through Paisabazaar.com. Or an interested loan applicant can simply walk into the nearest State Bank of Bikaner and Jaipur branch and meet a bank official to determine which home loan would be most apt for him or her. The bank official will then hand over the loan application form to the loan applicant, collect the required documents and start the process of the loan application. SBBJ will undertake the required checks such as verifying the income and the customer’s credit worthiness, etc. Thus, the applicants spared a lot of hassle and trouble while applying for the loan and will not even have to stand in a queue for the same.


SBBJ will expect the loan applicants to provide certain personal details such as their name, address, age, occupation, income, etc. This information will be used to generate an amount for the EMIs (or Equated Monthly Installments) that the customer will have to pay. Once the loan applicant decides that he or she will apply for a SBBJ home loan, they will have to provide the required documents for the documentation process to be completed. Once SBBJ is satisfied that the customer meets its eligibility criteria and the customer passes the credit worthiness check, the bank will grant the loan.

EMI Calculator

Given below are a few examples of EMIs that have been calculated for the State Bank of Bikaner and Jaipur Home Loans:
 

  • Mr. Bahri, a well-established businessperson, who lives in Mumbai, intends to buy a bungalow before he retires. However, he is short of Rs.40 lakhs. Therefore, He visits the nearest State Bank of Bikaner and Jaipur branch and meets with a home loan agent who helps him figure out the amount of EMIs that he would need to pay for availing a home loan of Rs. 40 lakhs. The loan works out to be for a repayment tenure of 30 years, with an EMI of Rs.34,995 at an interest rate of 09.95%.
  • Mr. Sen, aged 30 years works for renowned news agency in Kolkata.He wants to buy a flat that costs Rs. 25 lakhs. In order to do so he pays a visit to the nearest State Bank of Bikaner and Jaipur branch and speaks to a loan agent. For his loan of Rs. 25 lakhs, he has to pay an EMI of Rs. 31,681 at an interest rate of 9.95% for 25 years .
  • Mr. Shetty, a businessperson, is in his mid – 40’s and resides in Aligarh. He wants to strengthen his investment portfolio by investing in property and real estate. In order to do so, he needs to avail a loan of 1 crore beforehand so that when the property is finalized, he will have ready funds. SBBJ will provide the loan for thirty years and will charge him an EMI of Rs.87, 3868 at a rate of interest of 9.95%.
     

Applicant

Loan amount

Tenure

Interest Rate

SBBJ Home Loan EMI (Rs.)

Mr. Bahri

40 lakhs

30 years

09.95%

34,995

Mr. Sen

35 lakhs

25 years

09.95%

31,681

Mr. Shetty

1 crore

30 years

09.95%

87,388