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Home Loan

The State Bank of Hyderabad (SBH) is a leading Indian bank that is associated with the State Bank of India. It has over 1500 branches within the country, with its headquarters in Hyderabad. It is the largest associate of the State Bank of India. Among its many products and services on offer, SBH home loans are designed to suit the myriad needs of its customers such as the construction or purchase of a flat or a house or the refurbishment or renovation and improvement of an existing house.  The rates of interest on the loans offered by State Bank of Hyderabad are attractive and are competitive within the home loan market.
 

Purpose or objective of the State Bank of Hyderabad Home Loan
 

  • To buy a new flat/house or for the construction of a house or flat
  • To buy a plot of land and for the construction of a house thereon
  • To buy an existing (old) house or flat or for financing the extension of an existing house
  • To buy a plot of land only
  • To finance the repair work or renovations of an existing house or flat
  • To finance the purchase of furnishings/consumer durables
  • Takeover the loans from banks/HFC

Range and features of State Bank of Hyderabad home loans

State Bank of Hyderabad issues Home loans to suit the needs and requirements of all and sundry. Given below are the details of the SBH Home Loans

This loan is ideal for those who wish to buy or construct a new house. This home loan in provided to applicants in case they plan to purchase a newly built or a resale house. The Home loan can be availed either by a single applicant or by two or more applicants jointly. This loan can also be used for the renovation and refurbishing an existing house or flat.


Repayment of SBH Home Loan


Repayment of the State Bank of Hyderabad Home Loan may take place as follows:


For salaried individuals –


Check off facility – in which the employer will take responsibility to credit the salary to the borrower’s account at the branch from which the EMI will be deducted.
 

Post Dated Cheques (PDCs) for the repayment period or ECS (Electronic Clearing Services) or Standing instructions on the salary account maintained with the bank.


For non-salaried individuals-


Post-dated cheques for the repayment


ECS (Electronic Clearing Services)


SBH Home Cash
 

State Bank of Hyderabad Home Cash is a top-up home loan which is provided to individuals who have availed of a home loan from State bank of Hyderabad. The loan has many attractive features which are mentioned below:
 

  • The loan is like a personal loan which is multi-purpose in nature and can be used for any activities as long as they are not speculative
  • The loan can be taken either in the form of a term loan or in the form of an overdraft facility.
  • Existing home loan borrowers who have availed of the State bank of Hyderabad Home Loan can avail of this top-up loan scheme. Such borrowers should have a clear track record of loan repayments without any default
  • A minimum of Rs.50, 000 and a maximum of Rs.10 lakhs can be taken as a loan under this housing loan scheme
  • The permissible amount of loan which is actually granted to individuals within the aforementioned minimum and maximum limit is restricted to 75% of the current market value of the house property for which the home loan is taken less the outstanding balance in the home loan account
  • The loan would also attract a processing fee which would be 0.50% of the amount of home loans sanctioned subject to a minimum of Rs.1000 and a maximum of Rs.10, 000
  • The top-up loan availed should be repaid within a maximum loan tenure of 120 months or before the borrower attains 70 years of age whichever is earlier
  • As a security requirement, an extension of the mortgage on the residential property which has been already mortgaged for the home loan would be done
  • If the loan is taken as a term loan, the rate of interest charged on the loan would be 5 basis points over the existing Base Rate which is currently at 10.10% per annum. This rate would be charged irrespective of the home loan amount availed. If the loan is taken as an overdraft facility, the interest rate would be 30 basis points over the existing Base Rate which comes to 10.35% per annum. This rate is also independent of the amount of loan availed.

SBH NRI Home loan –NRIs can also apply for State bank of Hyderabad home loans as the bank also extends the facility of SBH housing loans schemes to NRIs for construction or purchase of a house or for buying a plot of land for building a house thereon. A minimum amount of Rs.3 lakhs and a maximum amount equivalent to 48 times the net monthly income or 4 times the net annual income is given as loan. The capability of SBH home loan transfer for taking over existing home loans from other banks is also available under the SBH housing loans scheme of the bank. The property which is funded from the loan is required to be mortgaged for the loan scheme. The loan is issued at a margin of 15% for loan amounts valuing up to Rs.20 lakhs. For amounts higher than this level, the margin is 20%. There is a moratorium period of 36 months and the loan repayment tenure can be taken for up to 30 years or before the borrower attains 70 years of age.

Additional Features of State Bank of Hyderabad Home Loan

  • This loan is available to individuals who are between the ages of eighteen and sixty. The loan applicants must have a fixed regular income from a reputed company and self-employed professionals or businesspersons who have with a minimum of three years in their field of activity. This loan is to be availed for the building, buying of a plot/house/flat. It can also be used for the extension, renovation and refurbishing of a house, plot or flat.
  • State Bank of Hyderabad allows its customers to repay their home loan within a maximum period of 30 years.  Therefore, the customers can choose any time frame to repay their loan so long as it is within thirty years. The longer tenure is related to a lower EMI for the customer to pay, thus, making repayment quite an affordable prospect. However, this does not mean only longer repayment tenures should be opted for, any individual with the financial capacity to repay their loan more quickly may opt for a shorter tenure of say 10 to 15 years. Their EMIs would be higher, but if they are in the financial state to bear this burden, then there is no issue with disposing of the loan within a shorter time frame. Whatever home loan repayment tenure is chosen by the customer, it is has to be repaid by the time the customer reaches the age of 70.
  • The borrower may add a co-applicant when they apply for a SBH Home loan. This co-applicant may or may not be the co-owner of the property. Co-applicants are usually husband or wife, father, mother, son, daughter, etc.
  • The amount of finance that is provided by the State Bank of Hyderabad Home Loan is as follows – the maximum loan amount will the lowest of the loan amount assessed on the basis of :
  • project cost, which includes cost of the land, house/flat, cost of additional amenities related with the house/flat, registration charges, stamp duty charges, property insurance, service tax and other statutory dues
  • Permissible EMI (Equated Monthly Installments)/NMI (Net Monthly Income) ratio
  • Maximum Permissible Loan to Value (LTV) ratio
     
    • As security, the State Bank of Hyderabad accepts the mortgage on the property that is to be bought, constructed or renovated. When the property cannot be mortgaged for whatever reason, the State Bank of Hyderabad will accept any other form on tangible security. The land has to be in the loan applicant’s name or jointly with a spouse who will be the co-obligant. The loan applicant should have a clear and marketable title over the property. He or she should have comprehensive insurance on the property for adequate value. The spouse/son/daughter can stand as guarantors if the income is clubbed.  When the house is under construction, the bank may ask for additional security, which may be for an interim period. This additional security may be provided in the form of tangible security or guarantees from solvent and sound individuals.
    • The State Bank of HyderabadHome loans can provide an in-principleapproval based on the income of the loan applicant and the capacity of repayment, before the loan applicant actually chooses the house/flat/plot that he or she wishes to purchase. This in-principal approval is valid for three months, during which time the loan applicant has sufficient time to choose a flat/house/plot of his or her choice. The in-principle approval is valid for a period of three months.
    • Tax benefits are available for Resident Indians on the principal as well as the interest components of State bank of Hyderabad home loans.              
    • The State Bank of Hyderabad employs the methodology of ‘daily reducing balance’, in which the borrower’s interest rate is calculated on the outstanding loan amount only. The outstanding loan amount that the borrower has to pay reduces every time he or she pays off the EMIs or makes prepayments. Ultimately, this significantly reduces the interest rate of the loan.
    • State Bank of Hyderabad allows for pre-payments to be made on the home loan and will not charge penalties on the same.
    • The State Bank of Hyderabad Home Loan can be sanctioned in a matter of two to three weeks provided the loan applicant has all the documents for home loans in place.
    • For applying for SBH Housing loan, the bank asks the loan applicants to provide the following –
  • Identity Proof – in the form of a copy of the loan applicants’ Passport / Driving License / Voter’s ID card / Driving License
  • Address Proof – in the form of a copy of Ration Card / Electricity Bill/ Telephone Bill / Rental Agreement / Passport
  • Last 3 months’ bank statement or past 6 months’ bank passbook
  • Last three years CA Certified/Audited Balance Sheet and Profit & Loss Account
  • Most recent Salary Slip or the current dated Salary Certificate and latest Form 16
    • Most recent Income Tax Returns
    • A cheque with the amount required as processing fees
    • Estimates for the construction/valuation report given by a bank approved engineer or lawyer for the acquisition/legal opinion on the property
    • Agreement for the sale of the house/flat,  proof of membership (for co-operative societies)

State Bank of Hyderabad Home Loan Other Features

  • This loan is available to individuals who are between the ages of eighteen and sixty. The loan applicants must have a fixed regular income from a reputed company and self-employed professionals or businesspersons who have with a minimum of three years in their field of activity. This loan is to be availed for the building, buying of a plot/house/flat. It can also be used for the extension, renovation and refurbishing of a house, plot or flat.
  • The State Bank of Hyderabad home loan has repayment tenure of up to 30 years. An individual availing the loan can choose any term until 30 years for paying off the loan. With such a long tenure, paying off the home loan becomes easier for the customer. The longer tenure of repayment also ensures lower EMIs as the installments are spread over a longer time frame making them affordable. If the customer, however, wishes to dispose of the loan sooner, he may choose a term earlier than 30 years like 15 or 20 years. The corresponding EMI will be higher, but if the loan applicant can afford the rates then there will be no problem in paying off the loan sooner. The repayment of the home loan has to be completed by the time the borrower reaches the age of 70 years.
  • The borrower may add a co-applicant while applying for the home loan. This co-applicant may or may not be the co-owner of the property. Co-applicants are usually husband or wife, father, mother, son, daughter, etc.
  • The amount of finance that is provided by the State Bank of Hyderabad Home Loan is as follows – the maximum loan amount will the lowest of the loan amount assessed on the basis of :
  • project cost, which includes cost of the land, house/flat, cost of additional amenities related with the house/flat, registration charges, stamp duty charges, property insurance, service tax and other statutory dues
  • Permissible EMI (Equated Monthly Installments)/NMI (Net Monthly Income) ratio
  • Maximum Permissible Loan to Value (LTV) ratio
     
    • As security, the State Bank of Hyderabad accepts the mortgage on the property that is to be bought, constructed or renovated. When the property cannot be mortgaged for whatever reason, the State Bank of Hyderabad will accept any other form on tangible security. The land has to be in the loan applicant’s name or jointly with a spouse who will be the co-obligant. The loan applicant should have a clear and marketable title over the property. He or she should have comprehensive insurance on the property for adequate value. The spouse/son/daughter can stand as guarantors if the income is clubbed.  When the house is under construction, the bank may ask for additional security, which may be for an interim period. This additional security may be provided in the form of tangible security or guarantees from solvent and sound individuals.
    • The State Bank of Hyderabad can provide an in-principle approval based on the income of the loan applicant and the capacity of repayment, before the loan applicant actually chooses the house/flat/plot that he or she wishes to purchase. This in-principal approval is valid for three months, during which time the loan applicant has sufficient time to choose a flat/house/plot of his or her choice. The in-principle approval is valid for a period of three months.
    • Resident Indians are eligible for tax benefits on the principal and interest components of a housing loan.                
    • The State Bank of Hyderabad employs the methodology of ‘daily reducing balance’, in which the borrower’s interest rate is calculated on the outstanding loan amount only. The outstanding loan amount that the borrower has to pay reduces every time he or she pays off the EMIs or makes prepayments. Ultimately, this significantly reduces the interest rate of the loan.
    • Borrowers may make pre-payments on this loan. The bank does not charge any penalties on pre-payments.
    • The State Bank of Hyderabad Home Loan can be sanctioned in a matter of two to three weeks provided the loan applicant has all the documents in place.
    • For applying for this loan, the bank asks the loan applicants to provide the following –
  • Identity Proof – Copy of Passport / Voter ID card / Driving License. Any one of these documents 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 / 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.
  • Last 3 months’ bank statement or last 6 months’ bank passbook. These documents seek to verify 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.
  • Last three years CA Certified/Audited Balance Sheet and Profit & Loss Account.
  • Latest Salary Slip or current dated Salary Certificate with latest Form 16, which is used 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 eligibility criteria checklist.
    Latest Income Tax Returns
  • Latest computation of income
    ‚Äč
    •  Agreement for sale of house/flat, proof of membership (for co-operative societies)
    • Estimates for construction/valuation report for acquisition/legal opinion on the property from a bank approved engineer/lawyer.
    • A cheque with the processing fees amount.

Margin
 

The margin for the State Bank of Hyderabad Home Loans is as follows:
 

Loan Amount (Rs.)

For houses or flats that are under construction

New house or flat for ready possession

Old houses or flats for ready possession

Up to 20 lakhs

15%

15%

15%

Above 20 lakhs

20%

20%

20%


EMI/NMI Ratio
 

The EMI/NMI Ratio is based on an income-wise graded ratio as follows:
 

  • Up to Rs. Sixty thousand – 20%
  • Above Rs. Sixty thousand to Rs. 1. 20 lakhs – 25%
  • Above Rs. 1.20 lakhs to 2 lakhs – 30%
  • Above 2 lakhs to Rs. 5 lakhs – 50%
  • Above Rs. 5 lakhs to Rs. 10 lakhs – 55%
  • Above Rs. 10 lakhs – 65%

Interest Rate and margin for SBH Home Loan schemes

The minimum interest rate for SBH Home Loans is 9.70% (Floating interest rate). An additional spread is added by the bank in order to account for the risk involved with individual client profile. 


The margin for the State Bank of Hyderabad Home Loans is as follows:
 

Loan Amount (Rs.)

For houses or flats that are under construction

New house or flat for ready possession

Old houses or flats for ready possession

Up to 20 lakhs

15%

15%

15%

Above 20 lakhs

20%

20%

20%


EMI/NMI Ratio
 

The EMI/NMI Ratio is based on an income-wise graded ratio as follows:
 

  • Up to Rs. Sixty thousand – 20%
  • Above Rs. Sixty thousand to Rs. 1. 20 lakhs – 25%
  • Above Rs. 1.20 lakhs to 2 lakhs – 30%
  • Above 2 lakhs to Rs. 5 lakhs – 50%
  • Above Rs. 5 lakhs to Rs. 10 lakhs – 55%
  • Above Rs. 10 lakhs – 65%

Fees and Charges of SBH Home Loan
 

Apart from the applicable interest rate, there are additional fees that one needs to consider in case of a State Bank of Hyderabad home loan. The following is an illustrative list:
 

Description of Charges

State Bank of Hyderabad Home Loan

Loan Processing Fees

Up to Rs. 25 lakhs

 

Above Rs. 25 lakhs to Rs. 75 lakhs

Above Rs. 75 lakhs

 

Pre-closure charges

 

Equitable Mortgage charges

Up to Rs. 1 lakh

Above Rs. 1 lakh

 

 

CERSAI – Amount of fee payable

 

Other charges – Lawyer’s fees, Valuer’s fees

 

0.25% of the loan amount subject to a minimum of Rs. 5000

Rs. 6500

Rs. 10000

 

Nill

 

 

Nill

Rs. 200 per lakh. Subject to a maximum amount of Rs. 11,200

 

Rs. 500 for creation

 

To be borne by the borrower on the basis of actual cost

State bank of Hyderabad Home Loan EMI Calculator

When selecting a SBH home loan, it is necessary for the applicant to figure out the EMI payouts that would be required in order to manage effective and efficient payment of the home loan. In order to aid in this process, individuals are provided the use of the State Bank of Hyderabad home loan EMI calculator. The following are some examples of how it can be used to calculate monthly EMI payouts.
 

  • Mr.  Mukherjee works for a reputed private sector company in Mumbai. He intends to purchase a house in his city that will be nearer to his office. He searches all over until he settles upon a flat that satisfies him; he then pays a visit to the nearest branch of the State Bank of Hyderabad and meets with a bank official. He finds out that if he avails a loan of 40 lakhs for a period of 30 years, the EMI works out to Rs.34,995 at an interest rate of 09.95%.
  • Mr. Tripathi, aged 30 years is a salaried professional working for a Multi-National Corporation situated in Kolkata. He has decided to buy an apartment in the city for which he needed 25 lakhs. To finance this dream of his, he visits a branch of State Bank of Hyderabad and asks about a Home Loan. It is concluded that he will have to pay an EMI of Rs. 31,681 for 25 years at an interest rate of 9.95%.
  • Mr. Verma,is 50 years old and resides in Ahmedabad. He is looking to create an asset in the form of real estate and is looking to invest in a property, which he has not yet identified. However, he wants to take a loan of 1 crore so that when he finalizes the plot to invest in, he will have the requisite funds. Given his profile, the State Bank of Hyderabad charges him an EMI of Rs.87, 3868 for loan tenure of 30 years and at a rate of interest of 9.95%.
  • Ms. Aggarwal has an apartment in the city of Bangalore, which she wishes to renovate and refurbish. She approaches many banks for a home loan that best suits her, but ends ups disappointed. Finally, she approaches the State Bank of Hyderabad for a home loan. On meeting with a bank official, she is able to decide upon a SBH Home Loan that suits her requirements. She is happy with the interest rate of 09.95%. She gets a home loan of Rs. 10 lakhs, with an EMI of Rs. 14, 426 for 20 years.

The respective EMIs are tabulated below:
 

Applicant

Loan amount

Tenure

Interest Rate

EMI (Rs.)

Mr. Mukherjee

40 lakhs

30 years

09.95%

34,995

Mr. Tripathi

35 lakhs

25 years

09.95%

31,681

Mr. Verma

1 crore

30 years

09.95%

87,388

Ms. Aggarwal

10 lakhs

20 years

09.95%

14,426

Eligibility Criteria for SBH Home Loan

An interested applicant may check his or her home loan eligibility for the State Bank of Hyderabad’s Home Loan by visiting Paisabazar.com website and checking the same. Individuals from the age of 18 to 60 years of ages may avail the State Bank of Hyderabad Home Loan. The bank decides if it will issue the Home Loan to the customers based on their eligibility that is decided by their repayment capacity. In turn, the customers’ repayment capacity is affected and considered by the bank on the factors mentioned below:
 

  • Customer’s income
  • Qualifications of the customer
  • Age of the customer
  • Spouse’s income
  • Number of dependents
  • Stability and continuity of occupation
  • Assets and liabilities considerations

Why State Bank of Hyderabad Home Loan?

The State Bank of Hyderabad has many satisfied customers who can vouch for the many services provided by the bank, one of these services being the State bank of Hyderabad housing loan provided by the bank.SBH ensures that the staffs who are involved in the loan application and sanctioning process are well-trained and have great empathy for the customer. SBH has zero hidden charges as loan applicants are informed at the outset about every cost, charge and fee related to the process. Applicants’ documents are also stored in the safest and secure manner so that throughout the entire process, the loan applicants have peace of mind and do not have to worry about being unduly charged or having their documents misplaced or stolen. SBH offers flexibility in its repayment options and more benefits that are given below:
 

  • The Home Loan available at State bank of Hyderabad comes both as a Term Loan as well as Overdraft
  • The home loan offers attractive interest rates that are very competitive
  • Documentation is hassle-free and easy
  • Daily reducing balance
  • Loan Processing fee is minimal
  • Loan is processed with minimal trouble and down-time
  • All Costs or charges are mentioned upfront.

Applying for State Bank of Hyderabad Home Loan Online

As online transactions have risen, State Bank of Hyderabad offers Home Loan application online through our website. The process is simple:


Visit our website @Paisabazaar.com and click the ‘Home Loan’ tab – after this you would be required to provide your details in the required fields.


By filling up the required fields, the customer is providing his details which are used to determine his eligibility for the home loan applied. This would help him apply for the loan easily. By applying this way, the customer does not have to put up with hassles to avail a loan. He/she simply needs to log on to the Paisabazaar website, choose the SBH personal loan tab, input details as required and submit the form electronically. A SBH representative will contact you to provide the necessary documentation if your application is accepted.

State Bank of Hyderabad Home Loan
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Excited

I am very excited to receive my home loan amount. It got approved at 9.30% only. I will be able to fulfill my dream of buying a house in Pune with my SBH home loan. The services by the bank are really good and the loan scheme requires very less documents to be approved.

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Posted on: Jan 11 , 2017