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Home Loan

State bank of Patiala, with its proficiency to fulfill the financial needs of various classes of customers by providing them a wide range of home loan schemes to choose from. The different variants of State Bank of Patiala home loan are given below.

Types and Features of State Bank of Patiala Home Loans

There are various types of State Bank of Patiala home loans that you can choose from in order to suit your specific requirement whether it’s a new home, a plot of land for your future home or a loan for construction of a house.


1. SBP – Regular Home Loan Scheme


The key features of Home loan that State Bank of Patiala offers are
 

  • No Minimum and maximum limit on the amount sanctioned in case of State Bank of Patiala Home loans. This however depends on the property value and repayment capacity of the applicant.
  • In one of its kind, the loan tenure can be stretched up to 30 years subject to loan liquidations prior to the borrower reaching 70 years of age.
  • The SBP Home loan offers interests at floating rate and on base rate itself.
  • Nil on application fee and zero foreclosure charges.

Processing Fee: Processing fees during the term of loan is collected upfront. The charges are collected upfront.
 

  1. For amount up to INR 25 lakhs - 0.25% of the loan amount or else Minimum Rs.1000, whichever is higher
  2. For amount above 25 lakhs and up to  than 75 lakhs - Rs.6,500
  3. For amount above Rs 75 lakhs - Rs.10,000
  • However in case the loan application is rejected during any technical scrutiny or legal/valuation report, the above mentioned fees are refundable post deduction of 25 % of the amount.
  • Loans offered by State Bank of Patiala offer the flexibility to change from fixed interest rate to floating and Vice-Versa. Customer is charged @0.56% in case fixed home loan account is converted to existing floating home loan and for converting the floating home loan account to fixed home loan R.O.I then a charge of 1% is implied.
  • Delay in Monthly EMI payment- While customers have to ensure the State Bank of Patiala Home loan EMI are duly paid as per the monthly payment structure, However state bank of Patiala is one of the very few banks which doesn’t charge   any penalty for default in monthly EMI for SBP Home loans up to 25 lacs.
  • For loan amount above Rs.25000/- if  there is any default for more than one month, then penal interest shall be recovered @2% p.a. (over and above the applicable interest rate) on the overdue amount for the period of default.
  • Issuance of Annual outstanding balance statement at the end of financial year.
  • Rate of interest :At 1yr MCLR which is currently  9.60%

2. SBP-Home Top up Loan
 

This loan scheme is to meet the requirement for those customers who are in need of surplus fund post availing the State Bank of Patiala home loan. Since the real estate market is at times volatile and prices may go up prior actual possession, this loan scheme is extremely handy in such a situation.


The features and benefits of top up loan scheme are:
 

  • Loan amount is between Rs.2, 00, 000 -Maximum Rs.5.00 crore.
  • The term of top up loan can be up to the maximum tenure by which the actual State Bank of Patiala home loan completes. This is Subject to liquidation of the loan before the borrower attains the age of 70 Years whichever is earlier.
  • Interest is charged on floating rate for home loan available at State Bank of Patiala.
  • The loan processing fee shall be 0.35% of the Loan amount (with a minimum of Rs.1500 and maximum of Rs.10000/-)
  • For any default in the payment of monthly EMI for more than one month, then penal interest shall be recovered @2% p.a (over and above the applicable interest rate) on the overdue amount for the period of default. Additionally a charge of Rs. .281 (including service tax) would be levied for return of any PDC issued.
  • Since the scheme is top up on existing State Bank of Patiala home loan, hence there is no additional collateral security required. Only primary security is required in the form of Extension of Mortgage on the Residential Property already mortgage with the bank.
  • Issuance of Annual outstanding balance statement at the end of financial year.
     
  • Rate of interest
     
    • 1.25% above Base Rate  i.e. 11.20% (for term loan)
    • 1.75% above base rate   i.e. 11.70%  (for Overdraft)

3. SBP - “GRAMNIWAS”-Scheme of SBP Rural Housing Finance – an SBP Rural Home Loan


This loan scheme has been designed ideally for customers from Rural India who desire to have their own house or to have a source of income by the construction of work shed for pursuing income generation activities viz. tailoring shop, dairy shed, grocery store, work shed for village artisans. The scheme was originally intended to cover all rural and semi urban centers having population of less than 50,000 as per 1991 census.


Some of the features of this loan scheme are as
 

  • Loan amount is derived basis the average annual income of the applicant.

Average Annual Income

Maximum Permissible installment to income ratio

Up to Rs. 40,000/-

0.25

Above Rs. 40,000 and up to Rs. 2 lac

0.45

Above Rs. 2 lac and up to Rs. 5 lac

0.55

Above Rs. 5 lac

0.6

 

  • In addition applicant may include the Income of the spouse for computing the loan amount.
  • Loan Tenure is for maximum 15 years.
  • Any All individual aged between 18 years to 50 year  having SBP bank account with proven track records  or a member of a self Help Group having saving / loan account with State bank of Patiala are eligible for this loan scheme.
  • Nil loan processing fee and interest rate offered at base rate makes the scheme even more money-spinning.
  • The security is acceptable as Equitable/registered mortgage of the house/plot or any other tangible security including agricultural land to cover 100% of loan amount. The construction should be insured up to the full market value or 10% above limit, whichever is higher under general insurance for various man-made and natural disasters.
  • State Bank of Patiala Home loans interest rate is at @ 9.60% P.A i.e. at Base Rate

4. State Bank of Patiala-MAXGAIN- This loan scheme is premeditated to cater the need of those who are looking for value proposition in terms of the SBP Home loans amount and tenure


The features of SBP-Maxgain home loan scheme are
 

  • Minimum loan amount is Rs. 10 lacs and no limit on maximum loan amount.
  • Enhanced tenure of up to 30 years subject to liquidation of loan before the borrower reaches the age of 70 years.
  • The interest when offered at floating rate is equal the bank’s current annual MCLR + spread as per individual applicant profile.
  • Nil on State Bank of Patiala home loan application fee and zero foreclosure charges.
  • Processing fees during the term of loan is collected upfront. The charges are collected upfront> the charges are
    1. For amount up to INR 25 lacs - 0.25% of the Loan amount.or else Minimum Rs.1,000/- , whichever is higher.
    2. For amount above 25 lacs and up to  than 75 lacs - Rs.6,500/-
    3. For amount above Rs 75 lacs - Rs.10,000/-

 

  • However in case the loan application is rejected during any technical scrutiny or legal/valuation report, the above mentioned fees are refundable post deduction of 25 % of the amount.
  • Flexibility to change from fixed interest rate to floating and Vice-Versa. Customer is charged @0.56% in case fixed home loan account is converted to existing floating home loan and for converting the floating home loan account to fixed home loan R.O.I then a charge of 1% is implied.
  • Delay in Monthly EMI payment- While customers have to ensure the EMI are duly paid as per the monthly payment structure, However state bank of Patiala is one of the very few banks which doesn’t charge   any penalty for default in monthly EMI for State Bank of Patiala Home loans up to Rs. 25 lakhs.
  • For loan amount above Rs.25000/- if  there is any default for more than one month, then penal interest shall be recovered @2% p.a (over and above the applicable interest rate) on the overdue amount for the period of default.
  • Issuance of Annual outstanding balance statement at the end of financial year.
  • Rate of interest is charged@ Base Rate i.e. 9.60% P.a.

5. Housing Loan Scheme for NRIs – Non Residential Indians (NRIs) can now avail State Bank of Patiala home loan facility from the State Bank of Patiala. The features of such SBP NRI Home loan schemes include:
 

  • The loan is available for purchasing or constructing a new house or flat, for repairing or renovating an existing home and for purchasing an existing house or flat or for carrying out extensions on an existing house or flat.
  • The minimum level of net monthly income of the borrower as a SBP Home loan eligibility criterion should be US $500 while the net annual income should be US $6000. If any other currency is considered, it should be the equivalent of the amount expressed in US Dollars
  • The minimum amount of loan available is Rs.3 lakhs while there is no limit on the maximum amount of loan that can be availed. The bank would determine the maximum available loan amount based on the ratio of the Equated Monthly Instalment to the Net Monthly Income.
  • In computation of the income criterion which is SBP Home loan eligibility, the income of the spouse may be considered if the property is held in joint name with the spouse or the spouse acts as a guarantor. The income of the earning children can also be considered for computation of loan quantum. In this case, the personal guarantee of the children would also be required or they can act as co-applicants if the property is held jointly in their name.
  • If a plot of land is purchased for construction, the maximum allowable loan amount if Rs.10 crores subject to the required EMI/NMI ratio. For carrying out repairs or renovation on an existing house, the maximum allowable loan amount is Rs.10 lakhs
  • If the NRI and his family would be staying abroad and the house to be purchased with the loan would be let out on rent, the rent income can also be added to the net monthly or net annual income for computation of the allowable loan quantum. The borrower in this case would have to undertake to credit the rent received into his State Bank of Patiala home loan account
  • SBP Home loan repayment can be done within 15 or 20 years as per the applicant’s age.

Documents for State Bank of Patiala Home Loans

The list of documents required in SBP Housing loans is quite widespread and hence customers are always advised to go through each and every fine detail prior submitting the loan. This ensure faster processing time as well reduce the risk of loan application rejection.


List of papers / documents applicable to all Resident individual applicants when applying for SBP Housing loan are
 

  1. Completed loan application
  2. 3 passport size photographs (including those affixed in loan application)
  3. Proof of identification and residential address like Aadhar Card or Voter ID Card
  4. Proof business address(non- salaried borrowers)
  5. Last 6 months’ Statement of bank account for the last six months
  6. Signature identification from current bankers
  7. Assets-Liabilities Statements in Bank-approved format.
  8. Brief account of other loans

For NRI/PIO borrowers:
 

  1. Completed loan application
  2. passport size photographs (including those affixed in loan application)
  3. Copy of passport including page containing visa stamping
  4. Copy of valid work permit.
  5. Copy of employment contract ( and English translation duly attested by employer /consulate / embassy /our foreign office if it is in any other language )
  6. Latest salary certificate in original or proof of income in case of self employed /professionals.
  7. Copy of identity card issued by the employer.
  8. Proof of residence (driving license / utility bills etc.)
  9. Copy of continuous Discharge Certificate in respect of applicants employed in merchant navy.
  10. Brief write up on employment profile for the last 10 years.
  11. Brief write up on the company / institution where employed i.e. its constitution, activity.
  12. Employee base sale / net profit (approx) etc.
  13. Statement of overseas bank account for the last six months which reflect credit of salary, savings etc.
  14. Power of Attorney, if applicable, duly stamped and notarized / attested by Indian Embassy / Consulate.
  15. For guarantor (wherever applicable):
  16. Personal Assets and Liability Statement
  17. 2 passport size photographs
  18. Proof of identifications as above
  19. Proof of residence as above
  20. Proof business address as above.
  21. Signature identification from his / her present bankers.

Additional documents required for salaried persons to apply for State Bank of Patiala home loans
 

  1. Original salary certificate for last month.
  2. TDS certificate- Form 16 or copy of I.T. Returns for the last two financial years, duly acknowledged by I.T. Deptt.

For professional /self- employed / businessmen
 

  1. Three years I.T.Returns duly acknowledged by I.T Deptt./ I.T. Assessment Orders for computation of income
  2. Copies of challans in respect of advance payment of income tax

Property documents
 

  1.  Deed/agreement of sale of the house
  2. Land/Building tax paid receipts, possession certificate, and location sketch of property certified by revenue authorities.
  3. Letter of allotment from Society/ Housing Board/Private builder.
  4. Original receipts regarding advance payments towards purchase of flat.
  5. Non encumbrance certificate of the property.
  6. Original copies of revenue authority-issued land tax payment receipt and possession certificate from revenue authorities.
  7. Permission certificate copy from Appropriate Authority and approved building plan (and also key plan / floor plan in case of purchase of flats)
  8. Original NOC as per ULC Act of 1976
  9. Copy of the relative order in case of conversion of agricultural land.
  10. Original No objection certificate from Housing Society / Builder
  11. Detailed estimate of cost of construction of House
  12. Letter from the Builder, Society and Housing Board intimating their account number and name of their bankers, for remittance of installments.

Other documents related to property
 

  1. If loan is granted to buy a plot of land, a declaration needs to be made by the borrower agreeing to complete construction within a pre-determined time
  2. Report from lawyer report according to format provided by the Bank.
  3. Valuation report from approved valuation expert.

Additional features of State Bank of Patiala Home Loan Scheme

  1. In case of Floating rate of interest the Interest on the loan shall be charged on the basis of then existing floating rate of interest on a daily reducing balance at monthly rests. The floating rate of interest is directly proportional to the credit policy steered by the Reserve Bank of India and is  subject to revision from time to time This may result in change of EMI in future course.
  2. For Fixed rate option, the interest shall be applied at the prevailing fixed rate of interest on daily reducing balance. The interest rate may be reset at the end of each year on the basis of fixed interest rates existing then. State Bank of Patiala (SBP) may at its discretion stipulate the periodicity of computation of interest. Further, SBP may at its sole discretion make changes to the interest rate based on prevailing market conditions.
  3. However in any case disagreement between the borrower or bank, the borrower may request bank in writing to liquidate the loan within 15 days of receiving notice for change in interest rate. The customer has to repay the entire loan outstanding inclusive of any other amount due to SBP in full and final settlement in accordance with the provisions of the Agreement relating to pre-closure.
  4. The prime purpose of State Bank of Patiala Housing loans scheme is towards purchase / construction / extension / repairs and renovation of new or old residential house/ flat/ plot of land/ purchase of consumer durables/ furnishings. In further parts of the document it would be referred to as a ‘project’.  
  5. Loan to value ratio is basically the proportion in which home loans sanctioned on the basis of the value of property. For loan amount less than Rs. 20 lacs, maximum permissible LTV ratio is 90% of the assessed value of the property. For loan amount more than Rs. 20 lacs, maximum permissible LTV ratio is 80%. .
  6. Home Loan life insurance cover is an optional value adds service. Customers who do opt for the same while processing of loan have the discretion to add the premium amount in the loan sanction amount.
  7. State Bank of Patiala retains the right to alter any charges or fees from time to time or to introduce any new charges or fees, as it may deem appropriate, with due intimation to customer.
  8. Fees and Charges are subject to change from time to time at the sole discretion of State Bank of Patiala.
  9. State Bank of Patiala is authorized to disclose from time to time any information relating to the loan to any credit bureau (existing or future) approved by Government of India and Reserve Bank of India without any notice to the borrower. State Bank of Patiala is also authorized to make inquiries with the Credit Information Bureau of India (CIBIL) and get the applicants Credit Information Report.
  10. For any delay/default in payment of EMI by due date, State Bank of Patiala has the sole right to intimate customer through various modes such as  post, fax, telephone, email, SMS messages as well as through 3rd parties appointed for collection purpose to remind, follow-up and collect dues. Any third party so appointed, will have to adhere to the Indian Bank Association’s (IBA) code of conduct on debt collection.
  11. The Bank reserves the right to collect any tax in case it is levied by the State/Central Government and /or other Authorities in respect of this transaction.

How to apply for a SBP Home loan online

Home loan from State Bank of Patiala can be applied by visiting Paisabazaar.com and choosing the Home loan option. Then you can fill out the online application form and submit it electronically. If your application is selected, a State Bank of Patiala representative will get in touch with you to complete the formalities with respect to sanctioning the loan.

State Bank of Patiala Home Loan
(4/5 ) 2 Reviews
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4/5

Very low interest rates

I am very happy to apply for a home loan at State Bank of Patiala. The interest rate on my loan amount is 9.05% only. The bank approved my home loan request within a few days and they have sent me a written reply stating that I will receive my loan a..Read more...

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Posted on: Jan 17 , 2017
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4/5

Good bank

I have been a customer of State Bank of Patiala for the past 5 years and the services are very good. I have also applied for a home loan from the bank and the bank has promised to give me the loan money within a few days. The interest rates are also ..Read more...

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Posted on: Jan 12 , 2017