With a fierce competition amongst various banks in India, it is understandably an arduous job for the home loan borrowers to come to a final decision. Having said that, there is one bank that has become a household name when it comes to offering the best & affordable loans i.e. State Bank of India.
There are so many reasons as why SBI has become a cardinal choice of loan borrowers throughout India such as – trust factor, hassle-free loan process, lowest interest rates, legal verification, wide variety of home loans, etc. Take any bank, the long and tedious loan processes have really made the whole loan borrowing process bothersome. But, that’s not the case with SBI, the bank offers easy and short loan process. For more information, read out the following 9 steps of how to apply for a SBI Home Loan.
Organizing property-related documents
Before you go ahead and apply for a home loan in SBI, it is important to have all the legal documents related to your property from your builder. These documents, generally, comprise of copy of the cheque and the booking receipt.
Seeking Legal Opinion
Now when you have the legal documents of your property, you need to visit an advocate to get all these documents verified, make sure the advocate is a part of SBI Panel. Your advocate will have a thorough look at the documents and will be verifying the Sales Agreement and Construction Agreement.
You may require receipt of tax paid till date and Encumbrance Certificate, but usually these are not required. This is the only step where you need to deal with lot of documentation from different sources, so make sure you have maintained your composure.
Estimation of the Property
Once the legal valuation is over, a property valuator will evaluate your property and this valuator will be a part of SBI panel. After the valuation is done, you will be provided with a letter.
E-stamping or Franking of the Agreement
This is an important step in the availing SBI Home Loan where you need to frank or e-stamp your Sales and Construction Agreement. The value of e-stamping may differ as per the value of the property and state. For Franking, you will have to visit the register office and for e-stamping, you will have to visit the registrar office, syndicate banks, and post offices.
Submission of the Application
Once you have successfully completed the above-discussed steps, you have to visit your nearest branch of SBI along with the application and form and required documents. As far as documents are concerned you only need to carry – valuator statement, legal opinion, and various other documents instructed by SBI.
The waiting period tend to vary from case to case. The minimum time taken by the bank for the home loan disbursal is 3 days. However, it is important to keep making regular follow-ups, asking for the inspection to be done, and all those things that actually help in accelerating the whole process.
You will receive a call from the bank as and when your loan gets the approval. This will be followed by submission of some more documents such as –
- Rs. 400 worth 2 E-stamps, where you will play the role of 1st party and SBI will be the 2nd party.
- Rs. 200 worth E-stamp where the parties will be the same as above.
- Rs. 200 worth E-stamp where the guarantor will be the 1st party and SBI will be the 2nd party.
- Make sure you have submitted all the documents while loan application.
- The cheque need to deposited in favour of State Bank of India.
Note: In case, you have a guarantor, then he/she needs to be present with you at the bank along with all the necessary documents.
When your SBI Home Loan is sanctioned, you need to attain the below-mentioned documents from your builder –
- Demand note from your builder. Make sure that it matches the payment schedule.
- No Objection Certificate (NOC) mentioning that the property is not mortgaged at any other bank.
- In the event the property is under-construction, you need to have Tripartite Agreement from your builder.
Before going ahead with the registration process, it is imperative to verify the stamp duty and you should inform the same to the bank as well. Following the completion of the registration process, one of the bank’s executive will visit to hand over the DD to the builder or you may also be asked to collect it personally from the SBI’s branch.
Well, you can easily apply for a SBI Home Loan by just following the above-mentioned 9 steps, it is indeed easy.