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Home Loan

State Bank of Mysore is a subsidiary of State Bank of India. It is headquartered in Bangalore. It was earlier known as Bank of Mysore Ltd.  In 1960, it became an associate of State Bank of India. State Bank of India holds 90% of its shares and the remaining by Institutions and general public.  It has a total of 1,026 branches.  Mrs. Arundhati Bhattacharya is the Chairman and Mr. Sharad Sharma is the Managing Director of State Bank of Mysore.


State Bank of Mysore through its multitude crafted products broadens the horizons for its customer in terms of financial products. Apart from deposit products, the applicants may also choose from a bunch of loans offered by State bank of Mysore. The Home loans from State Bank of Mysore are offered in multiple variants as per the requirement of borrowers. SBM offers home loan for Construction or purchase of House/Flat/Plot.


SBM housing loans are not only competitively placed in terms of product variations , but also the SBM home loan interest rates are one of the best in market. The simple and hassle free loan processing methodology, multiple options to apply for a State Bank of Mysore home loan and the extensive customer centric approach, makes the SBM home loan schemes a certain destination to approach for home finance. State bank of Mysore home loans are offered in below mentioned variants:
 

  1. State Bank of Mysore Home loan – For Purchase/Construction
  2. State Bank of Mysore Plot loan – For Purchase of Plot for Residential Use.
  3. Prime Minister Awas Yojana (Namma Mane)
  4. Credit Linked Subsidy Scheme

State Bank of Mysore Home loan Eligibility and Features

State Bank of Mysore offers Home loans to its customers for various purposes:-
 

  1. Constructing or buying a new house or flat.
  2. For renovating, extending or repairing an existing house.
  3. For buying build houses not more than 15 years old.
  4. To buy consumer durables or furnishings if it a part of project.
  5. Customers can avail home loan against II charge as well.
  1. SBM Home Loan Eligibility:-
     
  1. The applicant should be a resident of India.
  2. The applicant’s age should be between 21 years and 65 years.
  3. The applicant can use the sanctioned loan to purchase properties only in India.
  4. The applicant and the co applicant need to have a stable income. The credit history needs to be good as well.

Quantum of Loan
 

  • For net income of up to INR 60,000, the EMI/NMI ratio is 20% i.e. 80% of the property value.
  • For net income of from INR 60,001 to INR 1, 20, 000, the EMI/NMI ratio is 25%.
  • For net income of from INR 1, 20,001 to INR 2 lakhs, the EMI/NMI ratio is 30%.
  • For net income of from INR 2 lakhs to INR 5 lakhs, the EMI/NMI ratio is 50%.
  • For net income of from INR 5 lakhs to INR 10 lakhs, the EMI/NMI ratio is 55%.
  • For net income above INR 10 lakhs, the EMI/NMI ratio is 65%.

SBM home loan repayment :  SBM home loans is offered for a  Loan tenure upto 30 years so that the applicant has ample time to repay the loan.


Interest Rate and Margin for State Bank of Mysore Home Loan


Customer can avail the home loan at a floating interest rate of 9.85%.  In case of changes in current interest rates, information will be published in newspaper; website and sms will be sent to customers as well.
 

  1.  SBM Plot Loan:- 

The State Bank of Mysore plot loan is designed for the customers who want to buy residential plot. Customers can apply for this loan in order to buy residential plot/site by BDA/Municipal Corporation/State Development Authority/ Housing Board/City Improvement Trust Board/ on first sale.
 

SBM Plot Loan Eligibility:-
 

  1. The applicant should be a resident of India.
  2. The applicant’s age should be between 21 years and 60 years.
  3. The applicant can use the sanctioned loan to purchase properties only in India.
  4. The applicant and the co applicant need to have a stable income. The credit history needs to be good as well.

Loan Amount:-


The loan amount to be granted could be either 80% of the site price or 24 times of net monthly income of the applicant or 2 years of annual income whichever is less.


In case the guarantor is spouse, her income could be taken into account.  Here, the allotment would be in spouse’s name.


Income from other sources can be considered. However, income proof needs to be submitted.


20% of the site/plot’s price will be the actual margin.


SBM Plot loan repayment


The applicant can repay the loan amount within 60 months through EMIs.


Interest Rates:-


The interest rate for plot loan is 10.40% per annum (Base Rate + 0.75%).


Processing Fee:-


Per account, the processing fee will be INR 500. It is fixed.


Security for SBM PlotLoan:-  :Registered  Equitable mortgage by deposit of the immovable property is obtained as primary security . The registration of the mortgage is governed as per the local rules where the property is located and as considered necessary by the bank’s sanctioning authority. For loan amount beyond Above Rs.5 lakhs the memorandum pertaining to the equitable mortgage of said property has to be compulsorily registered as per the stamp rules of the state where t5he property is located.


Documentation:-

  • State Bank of Mysore home loan application form duly filled.
  • ID Proof: - Copy of PAN Card, Passport, Voter ID Card, Driving License, Aadhar Card.
  • Address Proof: - Copy of Aadhar Card, Passport, Electricity Bill, Telephone Bill, Driving License.
  • Last 6 months bank account statements.
  • Business Address Proof for businessman.
  • Signature credentials from bankers.
  • Identification & residential Address proof
  • Last 3 months’ statement of bank account. Salary credit narration is mandatory for salaried person in the statement of account
  • Salary certificate & Form 16 for salaried individuals.
  • ITR, Income proof of previous 3 years, duly certified assessment orders and other financial statements is required for the professionals or self employed applicants.
  • Duly certified Income Certificate by competent Revenue Authority is mandatory for the applicants who are agriculturists.
  • Salary Certificate along with Form 16 of previous year (if employed).
  • Previous 2 years IT Return.

Other Documents Required:-
 

  • Sale Deed/Agreements of Sale including previous documents for 14 years.
  • Under Provisions of ULC Act, 1976, original NOC needs to be submitted.
  • Approved drawing copies of proposed construction needs to be provided.
  • Valuation Report from Chartered Engineer/Architect needs to be submitted.
  • Khata Certificate needs to be submitted if applicable.
  • Vendor name and address and purchaser personal details.
  • Receipt of Tax payment done, Title deed of the property & possession certificate of the vendor.
  • All the payment receipts in original for the payments done to vendor/ builder.
  • Approved plan copy.
  • Duly certified Valuation & life Certificate of the property and should only be certified by any chartered engineer.
  • Approved Lay out plan.

Prime Minister Awas Yojana (Namma Mane):- 


State Bank of Mysore has launched a housing loan scheme called “Namma Mane” assisted by the Government of India in order to provide housing to everybody. This SBM rural home loan facility is supported by Government’s mission known as Prime Minister Awas Yojana which aims at “housing for all’ by 2022.  The person who doesn’t have a pucca house in his/her name or in the name of any of his/her family members in India is eligible to apply for a loan under this scheme.  The owner of the house should be the female head of the family or she may apply jointly with the male head. In absence of an adult female member, a male member could be the owner. The house should have a toilet along with basic amenities according to this scheme.


Namma Mane - Home loan eligibility:-
 

People from Low Income Group (LIG) and Economically Weaker Sections (EWG) are eligible to avail this loan.  Households that earns up to INR 3, 00,000 annually falls under the category of EWS whereas households that earns from INR 3, 00,001 to INR 6,00,000 falls under the category of LIG. Self-certificate/Affidavit needs to be submitted as income proof in order to be identified as either LIG or EWS. IT Returns file is not important. In case a person doesn’t have a steady income, the spouse, daughter or son who has steady income can become the guarantor or borrower of the loan.


Loan Amount:-


EMI/NMI ratio is the actual factor which decides the loan amount. Borrower’s age doesn’t play an important role here. Subsidy is only provided up to loan amount INR 6 lakhs, above that loan would be provided in non subsidized rates only.
 

  • 20% is the permissible EMI/NMI ratio for net income up to INR 60, 000.
  • 25% is the permissible EMI/NMI ratio for income ranging INR 60, 001 to INR 1, 20,000.
  • 30% is the permissible EMI/NMI ratio for income ranging INR 1, 20, 001 to  INR 2, 00,000.
  • 50% is the permissible EMI/NMI ratio for income ranging INR 2,00, 001 to INR 5, 00,000.
  • Rs. 20 lakhs is the maximum loan amount that could be granted.
  • NMI with respect to salaried, other than salaried and agriculturists:-

Salaried:-  For salaried persons, net income is the remaining amount after making all the statutory deductions.


Other than salaried persons:- For non salaried persons, net annual income (NAI) is the amount which is mentioned while filing Income Tax Return and after paying taxes.


Agriculturists:- For agriculturists, net annual income depends on the their engagement in the actual activity for example farming, dairy etc. and land holding, yield etc. as well along with the average income from that.


Security:-


Security for SBM Namma Mane Home Loan:-  :Registered  Equitable mortgage by deposit of the immovable property is obtained as primary security . The registration of the mortgage is governed as per the local rules where the property is located and as considered necessary by the bank’s sanctioning authority. For loan amount beyond Above Rs.5 lakhs the memorandum pertaining to the equitable mortgage of said property has to be compulsorily registered as per the stamp rules of the state where t5he property is located.


Interest Rates:- Customers can avail the loan at 10% per annum (Base Rate + 0.35%) and margin is 15%.  There is no processing charge for this loan. The repayment tenure is 15 years as maximum. There is no penalty for pre closure.


Moratorium Period:- Moratorium Period is also known as repayment holiday. When a person seeks for a loan in installments to construct a new flat or house, he can ask it. 36 months is the maximum moratorium period available under this scheme.
 

  1. Home Loan Under the Credit Linked Subsidy Scheme:-

Customers who fall under the category of LSI or EWS can get home loans at subsidized interest rate of 6.5% for 15 years or during loan tenure whichever is lower. However, subsidized interest rates are only applicable for loans up to INR 6 lakhs and above that amount; loans will be available at non-subsidized rate.
 

Priorities are given to people from LIG/EWS category, minorities, scheduled castes, scheduled tribes, women, disabled persons and transgender as well.
 

Special Features of CLS Scheme


Priority is given to applicants being from Economically Weaker Section /Low Income Group segments, Sanitary Workers, Women (special preference to the widows), persons hailing from Scheduled Castes or Scheduled Tribes or Other Backward Classes, Minorities communities, Persons with special ability and Transgender. The Primary Lending Institution are required to obtain No Objection Certificates every quarter from the respective State/Union Territory Governments or nodal agencies of the State/Union Territory Governments for the comprehensive list of beneficiaries to be covered under credit-linked subsidy. There is no Pre-closure Penalty or No prepayment charges.

Documentation:-
 

  • State Bank of Mysore home loan application form duly filled.
  • ID Proof and Address Proof
  • Last 6 months bank account statements.
  • Business Address Proof of business for businessman.
  • Signature credentials from bankers.
  • Salary Certificate along with Form 16 of previous year (if employed).
  • Previous 2 years IT Return.

Processing Time for State Bank of Mysore Home Loans


Metro & Urban Location
 

Scenario 

Sourcing entities 

Processing entities 

Total Turnaround time 

Under Builder Collaboration (same centre)

2 days

4 days

6 days

Under Builder Collaboration (other centre)

2 days

10 days

12 days

Other than Builder Collaboration (same centre)

2 days

10 days

12 days

Other than Builder Collaboration (other centre)

2 days

14 days

16 days

*For all the above mentioned four cases, additional two days is required for Documentation & Disbursement of Loan

 

Semi Urban & Rural Location

Type of Loans 

Timelines for Loan application Disposal 

Home Loan

9 days

 

 

 

 

Key Fees and Charges for SBM Home Loan

Apart from the usual charges for interest, additional charges are to be considered in case of a State Bank of Mysore home loan.


SBM Home Loan Processing Fees:- The loan processing fee is 0.50% subject to a maximum of INR 7,500.


SBM home loan Inspection Charges:-
 

  1. From Rs. 25,001 to Rs. 2 lakhs, there would be an inspection charge of INR 225 per inspection. In a year, the maximum inspection charge could be Rs. 600.
  2. From amount more than Rs. 2 lakhs to Rs. 10 lakhs, there would be an inspection charge of INR 275 per inspection.  In a year, the maximum inspection charge could be INR 1,250.
  3. From amount more than Rs. 10 lakhs to Rs. 25 lakhs, there would be an inspection charge of INR 500 per inspection. In a year, the maximum inspection charge could be INR 3,500.
  4. Inspection charge above Rs. 25 lakhs will be INR 600 per inspection. In a year, the maximum inspection charge could be INR 6,000.

SBM Home Loan EMI Calculator

  1. At 9.85% interest rate for a period of 30 years, customers need to pay INR 867 per lakh.
  2. Pre-payment and Pre-closure charges:-
     
  3. There is no pre-payment and pre-closure charge related to State Bank of Mysore for home loan.
  4. Delayed Payment Charges:-
     
  5. If the EMI is not paid on time for a period of one month above INR 25,000 loan amount, then the applicant needs to pay a penalty of 2% per annum on the due amount for the default period. If a part of EMI is due, then penalty will not be charged.

Security for SBM Home Loan:- Registered equitable mortgage by deposit of the immovable property is obtained as primary security. The registration of the mortgage is governed as per the local rules where the property is located and as considered necessary by the bank’s sanctioning authority. For loan amount above Rs.5 lakhs, the memorandum pertaining to the equitable mortgage of said property has to be compulsorily registered as per the stamp rules of the state where the property is located.

Documentation for State Bank of Mysore Home Loans

State Bank of Mysore Home Loans
 

  • State Bank of Mysore home loan application form duly filled.
  • ID Proof: - Copy of PAN Card, Passport, Voter ID Card, Driving License, Aadhar Card.
  • Address Proof: - Copy of Aadhar Card, Passport, Electricity Bill, Telephone Bill, Driving License.
  • Last 6 months bank account statements.
  • Business Address Proof for businessman.
  • Signature credentials from bankers.
  • Identification & residential Address proof
  • Last 3 months’ statement of bank account. Salary credit narration is mandatory for salaried person in the statement of account
  • Salary certificate & Form 16 for salaried individuals.
  • ITR, Income proof of previous 3 years , duly certified  Assessment Orders and other financial statements  is required for the professionals or self employed applicants .
  • Duly certified Income Certificate by competent Revenue Authority is mandatory for the applicants who are agriculturists.
  • Salary Certificate along with Form 16 of previous year (if employed).
  • Previous 2 years IT Return.
  • Sale Deed/Agreements of Sale including previous documents for 14 years.
  • Under Provisions of ULC Act, 1976, original NOC needs to be submitted.
  • Approved drawing copies of proposed construction needs to be provided.
  • Valuation Report from Chartered Engineer/Architect needs to be submitted.
  • Khata Certificate needs to be submitted if applicable.
  • Vendor name and address and purchaser personal details.
  • Receipt of Tax payment done, Title deed of the property & possession certificate of the vendor.
  • All the payment receipts in original for the payments done to vendor/ builder.
  • Approved plan copy.
  • Duly certified Valuation & life Certificate of the property and should only be certified by any chartered engineer.
  • Approved Lay out plan.

Additional Features for SBM Home Loans

  • In case customer opts for floating rate of interest in SBM Home loans, the equated Monthly Installments will compromise principal and interest based on Bank’s medium term lending rate, which is subject to change from time to time.
  • State bank of Mysore may at its discretion conduct discreet inquiry in respect of the loan application.
  • Customers are liable to inform the bank for any change in their occupation / employment / residential address and to provide any further information duly filled in the SBM Home loan request while applying.
  • State bank of Mysore will be at liberty to take any such action as may deem fit, in case of any information found untrue. This would true for cases wherein the Home loans sanctioned are subject to disbursal.
  • For floating interest rate on the SBM home loans, the interest shall be charged on the basis of prevailing floating rate of interest on daily reducing balance at monthly rests. The floating interest rate is linked to the credit policy guided by the Reserve Bank of India and is timely revised which may impact the change of Equated Monthly Installments in future.
  • For customer who opts for fixed rate of interest in their SBM Home loan, the interest rate shall be applicable as per existing fixed rate of interest on a daily reducing balance. The rate of interest is subject to bank’s policy of interest rate reset done at the end of every 2 years. State Bank of Mysore has the discretion to specify the periodicity of working out of interest. Further, State bank of Mysore may modify the rate of interest at its sole discretion, rightfully in the case of major unpredictability in interest rates during the period of agreement.
  • For any case of divergence between the borrower and the Bank, the borrower can request state bank of Mysore in writing to settle the loan within fifteen days of receiving notice for change in rate of interest. The customer will have to repay the full loan outstanding amount inclusive of all other due amount in the loan account as per the provisions of the signed loan agreement relating to pre-closure.
  • The key purpose of home loans scheme offered by State Bank of Mysore is for the purchase or construction or extension (Including repairs & renovation) of new or existing residential house/flat/plot of land/purchase of consumer durables/furnishings.
  • In case the borrower defaults  for the payment of EMI  for a period of more than 30 days and the home loans is for more than  Rs.25000/- the penal interest would be charged @2% p.a. which is basically over and above the regular  interest rate on the overdue amount for the total period of Non- payment . 
  • Loan to Value ratio (LTV) is basically the percentage in which loan amount is sanctioned considering the value of property. SBM Home loan offers a maximum permissible LTV of 90% of the gross assessed value of the said property for loan amount lower than Rs. 20 lakhs. For loan amount higher than Rs. 20 lakhs, maximum offered LTV is 80% the gross assessed value of the said property.
  • Life insurance on SBM Home Loans is an optional service with value adds. Customers opting for the same at the time of processing the loan will have the prudence to add the insurance premium amount in the loan amount.
  • State Bank of Mysore holds the right to modify any fees or charges from time to time and induct  any new fees or charges for its SBM home loan product , as it may deemed fit , with due intimation to customer.
  • State Bank of Mysore may change Fees and Charges at the sole discretion of the bank from time to time towards SBM Home loan.
  • State Bank of Mysore is authoritative to unveil any loan related information any credit bureau (existing or future) duly approved by the Government of India and the Reserve Bank of India from time to time without any prior notice to the customer. State Bank of Mysore is also authoritative to make due inquiries with the CIBIL (Credit Information Bureau of India) and obtain the applicant’s Credit Information Report.
  • The State Bank of Mysore holds the right to collect any due tax as levied by the Central / State Government & or other approved authorities in respect to the loan and other lending policies.

Apply for a SBM Home Loan Online

Any interested borrower may apply for SBM home loans either online or by visiting any of the nearest SBM branches.


Online application – Prior applying for SBM housing loan, the applicants may find the suitable Home loan available at State Bank of Mysore. SBM bank housing loan are offered for various purpose and as per the need of the borrower. For online applications, the easiest method is to visit the Paisabazaar website and fill out the online application form in order to apply for a home loan of State Bank of Mysore from the comfort of your home or office.