MOST IMPORTANT TERMS AND CONDITIONS SBI – Home Loan
The MITC covers the following Loan Products : Collateral:-
1. SBI Home Loan Scheme If mortgage of the property being financed is not possible, Bank may accept, at it
2. SBI Pre-approved Home Loan discretion, security of adequate value in the form of Life Insurance policies,
3. SBI Yuva Home Loan Government Promissory Notes, shares/ debentures, gold ornaments or such other
4. SBI Max Gain Home Loan tangible security as may be deemed appropriate.
5. SBI Realty Home Loan Interim Security Pending Mortgage:-
Wherever creation of mortgage is likely to be delayed for any valid reason, suitable
6. SBI NRI Home Loan
security including third party guarantee, as considered necessary, may be taken for the
7. SBI Gram Niwas/Sahyog Niwas/Tribal Plus
interim period.
8. SBI Green Home Loan
Utilisation of the loan:
The amount of the loan shall be utilized strictly for the purpose detailed in the
Purpose for which home loan can be availed: borrower’s application form and in the manner prescribed. The construction of the
1. The loan will be sanctioned for the purpose of purchase / construction / extension / house/flat or the modification/extension proposed by the borrower in the existing
repairs/renovation of new/second-hand residential house/flat/plot of land/purchase of house/flat should be strictly according to the plan approved by the Local
consumer durables/furnishings (hereinafter referred to as the ‘project’) Authorities/Town Planning and Development authorities. Any modification desired in
2. Premium of Home Loan Insurance cover (Optional) : The premium for the optional the plan as originally approved, can be undertaken only after express sanction for it has
Home Loan Life Insurance cover (if availed) will be added to the loan amount. been obtained from the appropriate authority.
Loan to Value Ratio (LTV): Insurance:
For loan amount less than Rs.20 Lacs, maximum permissible LTV ratio is 90% of the The house/flat shall be insured comprehensively for the market value covering fire,
assessed value of the property. For loan amount more than Rs.20 Lacs, maximum flood, Earthquake etc. in the joint names of the Bank and the borrower. Cost of the
permissible LTV ratio is 80%. same shall be borne by the borrower.
Rate of Interest: Inspection:
Floating Rate of Interest: - The Bank will have the right to inspect, at all reasonable times, the borrower’s property
Interest on the loan will be charged at prevailing floating rate of interest on a daily by an officer of the Bank or a qualified auditor or a technical expert as decided by the
reducing balance at monthly rests. The rate of interest is subject to revision from time Bank and the cost thereof shall be borne by the customer.
to time due to (i) changes in Base Rate or (ii) revision even without change in Base Rate Fees and charges:
the Bank has the option to reduce or increase the EMI or extend the repayment period 1. Processing fee: Collected at the time of Documentation.
Loan Amount Processing Fee
or both consequent upon revision in interest rate.
0.25% of Loan Amount. Minimum
Fixed Rate of Interest:- No Fixed rate option is available now Upto Rs.25 Lac Rs.1000/-
Above Rs.25 Lac and upto Rs.75
Interest on the loan will be charged at the prevailing fixed rate of interest on daily
Lac Rs.6500/-
reducing balance at monthly rests, subject to interest rate reset at the end of every two
years on the basis of fixed interest rates prevailing then. State Bank of India (SBI) may Above Rs.75 Lac Rs.10,000/-
at its discretion stipulate the periodicity of computation of interest. Further, SBI may at
its sole discretion alter the rate of interest suitably and prospectively in the event of 2. Other Fee/Charges:
major volatility in interest rates during the period of the agreement. Thenceforth the Reason Particulars Fee Amount
rate of interest varied as aforesaid shall be applicable to the Loan. SBI shall be the sole Collected for
payment to Legal Opinion & Search Report Rs.
judge to determine whether such condition exists or not. If the Borrower is not
empanelled
agreeable to the revised interest rate so fixed, the Borrower can request SBI, within 15 Advocate/Valuer Valuation Fee Rs.
days of receipt of the notice intimating change in interest rates from SBI, to terminate
the loan and the Borrower shall repay the Loan and any other amount due to SBI in full Collected for Stamp Duty (% of project cost) %
Payment to
and final settlement in accordance with the provisions of the Agreement relating to
State Govt Registration Charges (% of project cost) %
pre-closure.
Calculation of interest:- Other Fee______________________ Rs.
Interest on the amount of the loan will be applied at the prevailing rate per annum on
daily reducing balance with monthly rests. Total Rs.
Intimation of change in Interest Rate:-
The borrower shall be deemed to have notice of changes in the rate of interest State Bank of India retains the right to alter any charges or fees from time to time or to
whenever there are changes in Base Rate or increase in interest rates where there is no introduce any new charges or fees, as it may deem appropriate, with due intimation to
change in Base Rate are either displayed on the Notice Board of the Branch or customer.
published in news papers or made through entries of the interest rate charged in the 3. Conversion charges for switching loan from fixed to floating rate: : Option for switching
passbook/statement of account furnished to the borrower and the borrower is liable to loan from fixed to floating rate or vice versa is not available.
pay such revised rate of interest. Fees and Charges are subject to change from time to time at the sole discretion of SBI.
Penal interest:- Disbursement:
In the event of a default in payment or any irregularity in the account, the Bank The loan will be disbursed only on the following conditions:
reserves the right to levy a higher rate of interest as it deems fit. Enhanced rate of 1. All the security documents prescribed have been executed by borrower/co-applicant
interest @2% p.a on the irregular amount for the period of irregularity, over and (s)/ guarantor/s
above the applicable rate will be charged if the Equated Monthly Installment (EMI) 2. A valid mortgage (equitable or registered if equitable mortgage is not possible) has
remains unpaid for a period of 30 days from the due date, for any reason, including a been created in favour of the Bank as per the laws of the State.
bounced cheque. 3. Wherever creation of mortgage is likely to be delayed for any valid reason, suitable
Bounced cheque/ECS or SI dishonours:- security including third party guarantee, has been taken for the interim period.
A penalty of Rs 250/- will be charged for every bounced cheque/ECS or SI dishonours. 4. The loan will be disbursed in stages where a loan for construction is desired or
The rate may vary from time to time. purchase is through payment to seller in installments.
Repayment: 5. All necessary statutory compliances are in place.
The loan is to be repaid in Equated Monthly Installments over the tenure of the loan. SBI may disburse the quantum of loan in lump sum or in installments at its own
The repayment installment commences from a date specified in the sanction letter. discretion depending on the level of construction of the House/Flat as acceptable to
The liability to the bank will be extinguished only when the outstanding in the loan SBI.
account becomes Nil, on payment of residual amount, if any. SBI will disburse loan amount directly to the builder/seller/society as the case may be
Loan Tenor: and as requested / specified/ directed by the customer to SBI at the time of each
Maximum 30 years (or) up to the age of 70 years (the age by which the loan should be disbursement. SBI shall not be responsible / liable in any manner whatsoever for any
fully repaid) of the borrower, whichever is early. delay by the customer in providing such request/ specification/ direction to SBI and the
Pre-closure Charges:- customer shall not claim any costs, charges and expenses in any relation to any non-
Loans on Fixed and Floating rate of interest: disbursal by SBI due to any such delay by the customer.
No pre-payment/ Pre-closure penalty will be levied on Home Loans irrespective of the The Bank reserves the right to collect any tax if levied by the State/Central Government
period for which the account has run or source of funds. and/or other Authorities in respect of this transaction.
Security:
Primary:- Default:
The loan will be secured by Equitable / Registered mortgage/extension of mortgage of In the event of default i.e. if the amount due is not paid by due date, the customer will
the land and building/flat for which the loan is to be sanctioned. be sent reminders from time to time for payment of any outstanding on his loan
account, by post, fax, telephone, email, SMS messaging and/or through third parties
