SBI Home Loan Process Explained in Steps
|1.Collecting the Property related Documents:Go to the builder and get all the property related legal documentsI have got Legal opinion and Share of agreement and Sanctioned Site plan from my builder.||NA||Booking Receipt along with the copy of the cheque.||Depends 0|
|2.Legal Opinion: Go to an Advocate who is in the SBI Panel with the documents in step 1 to get it verified. For the advocate to give the final legal opinion he needs to see the Sales Agreement & Construction Agreement and he needs a photostat copy of it.Normally if its a builder share following documents needs to be collected from the builder :1. Encumbrance certificate till current date (from some 35 years advocate may ask)2. Tax Paid receipt till dateLawyer is going to make you run for multiple documents, so the maximum delay is expected at this step, once this step is done half part is done||Adinath Narde & revathy AssocaiatesSt Marks Road bangalore (Near to St.Marks Hotel and Bishop cotton girls school)||Legal opinion||1500*Has been revised to 3000 (Thanks Rajeevi Shyam for sharing the info)|
|3. Property Valuation:Once the Legal valuation is done go to a property Valuator who is in the SBI Panel with the sales agreement.He will valuate the property and will give a letter.||NA||Valuator statement||1500|
|4. E-stamping: SBI mandatess the Sales agreement and Construction agreement to be estamped/Franked. Regarding whats the value to which e-stamp ask the concerned bank.Normally for a ongoing construction flat, there will be 2 Agreements a)sales Agreement and b) Construction AgreementIn my case, the bank asked me to e-stamp the Sales agreement for 1 % of the value shown there or for 20,000 which ever is minimum and they asked me to frank the Construction agreement for 200 Ruppees.E-stamping and franking are actually the same, e-stamping is the new technology where as franking is the old one where we stamp it, Franking can be done only at register office where as e-stamping can be done at post offices, Syndicate banks, Selected registrar offices etcNote: Make sure you, your wife and builder sign on the e-stamp which you purchase.||Domlur Sub-registrar office (can do both e-stamping and franking)||e-stamp and franking on the sales agreement||14,911+200
Remarks: e-stamping mode of payment is via cashFranking if above 1000 need to take a DD in the name of the sub-registrar, locality*Harish mentioned that for FY2013-14, franking value for sale agreement has to be 0.1%. Thanks Harish for the info.
|5. Submitting the Application: Once we got the Valuator statement and Legal opinion, now go to the SBI with the filled in application forms along with the required documents for loan application. Also attach the legal opinion and the Valuator statement.Note: Its always good to go for a interiors loan (max up to 3 lkhs) along with the hoam loan which will save you another 7000 rs for the processing fee. For the interiors you need to get a quote from an interior designer and get it valuator sanctioned. For me I went with valuator only||SBI Special Home Loan branch, JayanagarInteriors valuation: C S Vyasaraja||Application formValuator Statement|
|6. Waiting period: Now its time for the waiting period. The waiting period may vary person to person. Normally in the special home loan branch, it can be as fast as 3 days. For me unfortunately it took 23 days as there was an audit going on in the bank. periodically call them to make the process much faster. Also make sure they inspect the property if you are in a hurry to get the loan coz unless and until they inspect it, they wont disburse the money.||NA||Nil||Nil|
|7. Documentation:Once the loan is sanctioned, Bank people will give you a call and now we need to plan for the documentationFor the documentation we need to get the following documents1. 2*400 rupees worth e-stamp1st party: Loan applicant2nd party: SBI
purpose: Housing Loan Agreement
2. Rs.200 worth e-stamp
1st party: Loan applicant
2nd party: SBI
purpose: Housing Loan Agreement
3. Rupees 200 worth e-stamp
1st party: Guarantor
2nd party: SBI
purpose: Housing Loan Agreement
4. All the original documents which you have submitted while applying for the loan.
5. 17 Cheques in favour of SBI. Out of this 5 are for securit and the 12 are for EMI. In my case 3 months I have taken Moratarium (Moratarium is the period for which only the interest will be taken from the borrower, which is commonly termed as pre-EMI)
Loan applicant along with guarantor needs to be present at the bank for the documentation. builder is normally not required, if its a land lord hsare then they have to come
|SBI Special Home Loan branch, Jayanagar||Loan Sanction Letter||1260
Remarks: e-stamp mode of payment is Cash
|8. Disbursement:Once we get the Loan Sanction letter go to the builder and get the following documents1. NOC from the builder stating he hasn’t mortgaged this property to any other bank2. Tripartite agreement (e-stamped/Franked for 200 rs) [This is required only if its a ongoing construction.3. Demand Note from the builder[how much money he needs now)Note: Please make sure whatever demand note they makes is matching with the schedule of payment. In my case I have to twice change the demand Note.||SBI Special Home Loan branch, Jayanagar||DD in favour of builder||Demaded Money|
|9. From now on for further payments we can just send a mail to the manager to please disburse the amount XXX and then ask the bulder to send a boy to the SBI branch with the original demand note and they can collect the DD from the bank directly. We dont have to go to bank anymore.|
|10. Now its time for registration and the final payment to be made to the builder. here there are some things to be careful.a) Check with the builder two days before registration, how much is the current registration Stamp duty and the same needs to be conveyed to SBI. Instead of paying the registration amount from our pocket, its better to be taken from the Loan account(so the same needs to be paid to the builder from our side), the reason for the above is that it will save us some money interms of DD charges as SBI themselves are taking the DD in the name of registrar, we dont have to pay any DD sur charges.b) If you are doing a, that is getting the DD from SBI loan amount, then you need to send to SBI the receipt for the same amount being paid to the builder (if you have already paid this ignore it)c) Remind the SBI manager regarding the registration and also ask them keep the DD ready before 1 day so that we can take a photostat of the same and give it builder. This is must as the builder needs the DD# and other details in the sale deed||1. DD for Registartion Stamp duty in the name of Sub-registrar2. DD for Mortgage Stamp duty in the name of Sub-registrar: Rs. 43023. DD for Stampduty in the name of Sub-registrat: Rs. 43024. DD for Building insurance in the name of Sub-registrar: Rs.183005. Photostat of the DD for the remaining amount to be given to builder in the name of builder (The original will be given to the builder only at the time of registration by the bank people)
6. SBI Postal mail form which needs to be send after registration saying we have submitted all the registered documents to SBI.
|11.Finally its party time and the Registration Day has come. This is the easiest thing, as the builders will arrange everything and we dont have to do anything apart from being present at the registrar office for nearly 4 hrs. Normally, at the end of the registration, you can give a call to the SBI officer and they will personally come and give the DD to the builder, but in my case since they were totally busy, they asked me to come over to the branch and collect the DD and give to the builder.||1. Registered Sale Deed2. Registered Mortgage Deed [Only mandated by SBI, HDFC and other banks dont mandate this]3. Encumbrance Certificate after Sale deed registration [ Once sale deed is registered, the flat will be in your name]4. Encumbrance Certificate after Mortgage deed registration [ After this the flat will be in the name of SBI and your name] once we close the loan, we need to register it back to our nameNote: Everything all the originals need to be submitted to the SBI branch/officer if they come to the registrar office after registration [Make sure you take enough photocopies before you submit the same to SBI].
5. The very next day you need to send a Postal mail to SBI saying you have submitted all the originals to SBI on so and so date.