Sundaram finance limited has emerged as a company with huge potential in the housing sector.
The company has worked hard towards providing loans to all the sectors of the society.
Sundaram Home finance is a subsidiary company of Sundaram finance limited which was established in 2nd July 1999 under the Companies Act of 1956. To control the market and to exploit it to its maximum potential the Sundaram Home Finance entered into the joint venture with BNP Paribas Personal Finance and the Company was renamed as Sundaram BNP Paribas Home Finance Limited. The Company has grown over the number of years and is working in direction of providing dedicated customer service, fair business practices and trustworthy financial policies to its customers. The company is working with a vision of providing excellent services to the formal and informal sectors of the society.
The infrastructure of the company is incomparable with the other financial companies the company has a very reliable reputation in a financial market. The infrastructure of the company is technology based. The IT based technology has made the automated and centralized processing possible and has made the work easier for the customers. The procedures followed by the company are customer friendly and tech friendly .All the branches of the company are interconnected and speedy actions and personalized attention is provided to the customer. There is flexibility in the company’s policies which can be easily molded according to the customers’ requirements. This proves to be the greatest strength of the company’s portfolio. The Sundaram BNP Paribas home finance limited has branches spread almost in every states of the country. The main branches of the company are in Andhra Pradesh, Gujrat, Karnataka, Kerala, Madhya Pradesh, Maharashtra, Orissa, Rajasthan, Tamil Nadu and West-Bengal.
Sundaram Finance Home Loan Interest Rates
|<= Rs. 30 Lacs – 8.40% (women) > 30 to <= 75 Lacs 8.55% (women) > 75 8.65% if plot loan 9.20%||9.2% if plot loan 10.20%|
Home Loan Features
The person can avail home loans from the company for the following purposes:
- The loans can be availed by the person for the construction of a new house on the plots pre-owned by him.
- The loans can be availed for obtaining an apartment, row of house, bungalow from a builder.
- The loans can be obtained for purchasing any existing property like bungalow, row of houses or bungalow.
Amount of loan
- For housing loans up to Rs. 20 lakhs
85% of the original value of the property can be availed as loan. The valuation of the property and repayment capacity of the applicant is first assessed by the Sundaram BNP Paribas and then the loan is sanctioned accordingly.
- For housing loans above Rs.20 lakhs and up to Rs.75 lakhs:
80% of the original value of the property is available as loan. The valuation of the property and the repayment capacity of the applicant are assessed by the Sundaram BNP Paribas and then the loan is sanctioned accordingly.
- For housing loans above Rs.75 lacs
75% of the total value of the property can be taken as the loan amount. The valuation of the property and the repayment capacity of the applicant are first assessed by the Sundaram BNP Paribas and then the loan is sanctioned.
- Maximum Term of the Loan
The maximum term for the loan is 20 years or the age of retirement for the salaried person whichever is earlier.
The maximum term of the loan is 15 years or time period till the person gets 65 whichever is earlier, for self employed individuals.
The NRI’s are also allowed the maximum term of 15 years or retirement age whichever is earlier.
HOME EXTENSION LOAN
Home extension loan is taken if a person is planning to:
- If a person desires to add an additional room or two to the existing home and requires loan for the same.
- If an applicant wish to add an additional floor to the existing building.
- If any other extension has to be done in the existing building any other manner.
100% of the loan is generally sanctioned but it totally depends upon the actual value and the repayment capacity of the applicant as assessed by the Sundaram BNP Paribas Home Finance Limited.
HOME IMPROVEMENT LOAN:
The home improvement loan can be availed by the applicant if he is planning any internal or external repairs of the existing building or home. The company allows the home improvement loans to an applicant upto 100% of the loan applied for but the disbursement of the loan totally depends upon the total value assessed and the repayment capacity of the applicant as decided by Sundaram BNP Paribas Home Finance Limited.
If an applicant has found a desired piece of land and has an intention of building his own house on that piece of land and is finding it difficult in paying the amount and is looking for a financial help, the person can easily approach Sunadaram BNP Paribas Home Finance Limited for the loan to fulfil his dream of purchasing a plot.
- Maximum Loan Amount:
The maximum loan allowed by the company is generally 75%, but it also depends upon the actual valuation of the property and the repayment capacity of the applicant as assessed by the Sundaram BNP Paribas Home Finance Limited.
- Maximum Term of Loan:
- For Salaried and NRI’s:
The maximum term of loan allowed is 10 years or the retirement age of an applicant whichever is earlier .This condition is applicable to all the categories of the salaried customers.
- Self-Employed Category:
The maximum term of loan allowed is 10 years or 65 years of age for an applicant of this category.
The loan under this scheme is offered both for residential and commercial purposes. The applicant from any category of the society can apply for the loan as per his desired requirements.
- The maximum loan allowed:
The maximum loan allowed is up to 50% of the value of the property. The loan is sanctioned only after the valuation of the property and the repayment capacity assured by the Sundaram BNP Paribas Home Finance Limited.
- Maximum Term of repayment:
The maximum term allowed for the repayment of the loan is 10 years or the age of retirement whichever is earlier for the salaried category applicant.
The maximum term of repayment for the self-employed category is 10 years or 65 years of age whichever is earlier.
- Interest rates:
The interest rates offered by the company are linked with SH-PLR [SH-Prime lending rate]. The company has reduced its rate of interest from 15.40% p.a. to 15.15% p.a. with an effect from 06.10.2015.
And for confirming the current rate of interest the customer can directly visit the nearby branch.
- Income-Tax benefits:
The customers availing home loan from Sundaram BNP Paribas Home Finance Limited are eligible for the tax benefit on the interest on home loan under the income-tax act of 1961.
Following documents are required while applying for the loan.
For salaried category:-
- Identity proof, age and address proof.
- Bank statements for the last six months.
- Salary certificate or slip of last three months.
- Form-16 for availing income tax benefits.
- Identity proof, age and address proof.
- Business profile
- Income tax returns and challans for last three months.
- Profit and loss account and Balance sheet copies of last three years.
- Bank statement details of last three months.
- What are the different variants of home loans available at Sundaram Finance?
Sundaram Finance offers four different types of home loans which are home loan, home improvement loan, home extension loan, land loan and LAMP which stands for Loan Against Mortgage of Property. All the loans are meant to fulfill specific house-related requirements and individuals can apply for any loan as per their liking
- Who can avail the home loans available at the company?
Sundaram Finance offers home loans to self-employed individuals, salaried individuals and also Non Resident Individuals (NRIs)
- What is the amount of loan available?
The amount of loan granted by the company depends on the type of loan availed. While home loans have a margin which depends on the amount of loan sought, loans for improvement and extension are available for 100% of the incurred cost. For LAMP variant, 50% of the value of property is allowed as loan while for land loans, 75% funding is provided.
- What is the amount of loan available under the home loan variant?
Home loans are issued for purchase or construction of a new home or purchase of any existing house. The actual quantum of loan available depends on the amount of loan sought. For loans up to Rs.20 lakhs, 85% of the original value of the property can be availed, for loans ranging from Rs.2 lakhs to Rs.75 lakhs, 80% of the value of property can be availed and for loans higher than Rs.75 lakhs, only 75% of the value of the housing property would be provided as loan. The actual amount of home loans sanctioned would depend on the repayment capacity of the borrower.
- What is the loan repayment tenure granted for paying the loan?
The loan repayment tenure also depends on the type of loan availed. For home loans, the maximum tenure of repayment allowed is 20 years for salaried individuals and 15 years or before reaching 65 years of age, whichever is earlier for self-employed individuals. For Land Loans, the repayment tenure allowed is a maximum of 10 years and for LAMP variant too, the repayment tenure is 10 years.
- What are the rates of interest payable on the home loan variants?
The chargeable rate of interest on any variant of the home loan is linked to the company’s Prime Lending rate. The company has reduced the Prime Lending Rate to 15.15% per annum and loans are linked to this rate of interest. Housing loans are issued at a minimum interest rate of 9.80% and a maximum interest rate of 11.05% while plot loans are issued at a minimum rate of interest 13.30% and a maximum interest rate of 15.80%.
- Is any processing fee payable for the loans?
Yes, housing loans issued by Sundaram Finance attract a processing fee which is payable upfront at the time of availing the loan. The total fee payable is up to 0.75% of the amount of loan issued while the non-refundable component of the fee is limited to Rs.5000.
The reasons for choosing the Sundaram Finance are as follows:
- The terms and conditions are stated clearly. There are no chances of any ambiguity in any clauses in the loan documents of the Company.
- The time taken in processing and execution of the documents is quicker compared to other Companies. There are less chances of delay in processing after the submission of papers and required documents by the customers.
- The Company has a better understanding of the customer requirements the loan policies have been designed according to the needs of the customers.
- The company has a perfect policies tailor-made to fit into the customer requirements.
Applying for a home loan is easy because Sundaram Finance has launched the online application channel along with the branch application channel which is already available. For applying online, one should visit the website Paisabazaar.com and apply for the loan. Clicking the option would open another page where the individual is required to fill in his details and send the form. This is the first step of application. After the company is satisfied with the application, it will contact the individual to complete the application process through submitting the required documents and paying the required fees and charges.
The online application process is simple and flexible. It is convenient too in terms of the hassles avoided due to virtual application. Physical visits to the institution’s branches are cut down and the application can be completed from anywhere. Paisabazaar.com also has a range of financial tools which help the individuals to ascertain their eligibility, the instalments payable if a loan is availed and other helpful tools. Such tools can be utilized before applying for the loans so that there is complete transparency at the time of application and also at the time of sanctioning of the home loan.