Home > General, Home Loan Process > SBI Home Loan Process Explained in Steps

SBI Home Loan Process Explained in Steps

Steps Reference Output Document Cost
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.

6. 🙂 🙂

THE END!!!!!!!!!
Categories: General, Home Loan Process
  1. Sandeep
    December 27, 2011 at 2:24 PM

    Hi Jerin,
    Thanks for the post, really helpful.
    I got a quick query on the above…why did you have to take so much of trouble running around, where as HDF or citi would have made is much easier and convinient.Any reasons??
    I am right now in a dilemma to which one to go with for home loan.


    • February 6, 2012 at 7:43 PM

      Thanks Sandeep. Sorry for the late reply. I saw the comment now only. All SBIs u dont have to run behind. Whatever I explained is apllicable only for Special Home loan financing branch which doesn’t have any agents(Pro’s and cons of SBI special branch is explained in another blog post). The reasons I went for SBI when compared to HDFC/Citi bank are listed below

      1. SBI being a nationalized bank there are no hidden charges/policies unlike private banks
      2. As far as I know there are no other banks which have a plan similar to SBI’s max gain plan. Max gain plan is a Overdraft loan account and you can make part payments to the loan whenever you want and also you can withdraw whatever u paid in excess at anytime through online transfer.
      For eg: lets say if you have a homeloan of 5 lakhs and lets say you got some additional cash in bank say 1 lakh. This 1 lakh can be paid to the home loan there by reducing the principal amount to 4 lakhs and from then on the interest will be calculated for 4 lakhs. Now lets say after 2 months u got a family emergency and u are in need of money. Then with maxgain plan u can withdraw the 1 lakh which u paid in excess during that time.

      • amey
        November 1, 2012 at 9:20 PM

        Thanks for such a huge & informative portal but, I have an query as Just initiated by HL from SBI & process haven’t yet started but, wanted to know as what is the Expiry of SBI sanction letter. is it 2 or 6 mths.

      • Uday Chandra
        February 24, 2018 at 9:08 AM

        hi sir,

        I’ve a small problem with disbursal, I’m constructing home on my own and the branch manager is always asking me to get the progress report of the work for disbursal of amount from the sanctioned loan amount, from a civil engineer appointed by the bank for this purpose. That civil engineer is always giving me a report which is to the 70% of the expenditure I’ve invested in it and the Branch manager is disbursing an amount which is again 70% of the progress report. I’m fed up with this, please guide me for a smooth way for transaction and loan disbursal.

  2. Bipin
    January 10, 2012 at 10:38 PM

    thanks for the such detail explanation !

  3. siva
    January 25, 2012 at 9:54 PM

    Excellent….this is very useful information….Thanks for sharing this.

  4. sunil.k
    February 6, 2012 at 6:09 PM

    thanks for u r suggestions…… i m in processing stage valutor will come soon……thnx

  5. Chetan D
    February 8, 2012 at 6:15 PM

    Thanks for sharing the detailed information. I had one query (might be simple one for you):

    Does the Stamp Duty and Registration DD needs to be taken from same bank where I am planning to apply the loan for?

    Suppose I am taking Home loan from SBI and planning to get the DD from Bank of India. Does SBI will create problem while sanctioning the loan? is there any policy around this?

    • February 8, 2012 at 9:35 PM

      Hi Chetan,
      As far as I know here is no mandate that Stamp duty and Registration DD needs to be taken from the bank from where we have got the loan. But taking the DD from the same bank(I know only about SBI) is always a better option as SBI will not charge for taking the DD (provided yor home loan is also from SBI.Most of the banks charge a nominal amount for taking DD). That money you can save.

      • Chetan
        April 21, 2012 at 2:22 PM

        Thanks Jerin for your reply. I paid the Stamp Duty and Registration charges via Bank of India DD. My home loan sanction appointment has happened on Friday. I was told to pay following charges :

        Stamp Duty for Loan and Mortgage in cash 7500
        Processing Fee : 6500
        Property insurance :22000

        I asked the SBI manager for receipt of this 7500 (cash) which was ultimately paid to stamp vendor. Actual stamp cost was around 6500 to 6800 since was signing so may documents, i was not able to count that. The SBI manager told me he cannot give me the receipt as it is directly paid to stamp vendor. So i had few questions:

        Is this stamp charges have to be really paid by us?

        Are they not part of processing fee?

        What would be the stamp (total value) required for a loan of 30,00,000 (30 lacs amount)?

        I fear that the amount has not got into the pocket of SBI manager 🙂 Thanks in advance


      • April 21, 2012 at 3:17 PM

        Hi Chetan,
        Stamp duty thing is for sure not part of the processing fees. Since I paid from the SBI home loan account only, I didnt face any issue. As SBI just gives the DD for the amount which you ask. I just gave it to the registrar office and got a receipt. not sure how the stamp duty prices are separately calculated. (I can be wrong here as I am not an expert on this and I dont most of the calculations now as I have done it one year back) 🙂

      • Chetan
        April 23, 2012 at 2:28 AM

        Thanks Jerien for the below reply. Just to update you the stamp duty for mortgage is different. This has to be paid in cash. not sure though how the stamp value for this is decided/calculated . No calculation logic for this was available on Internet. I enquired with my friend who has taken the housing loan, he was also told to pay some stamp amount in cash for this loan and mortgage. I also heard that at some places SBI itself manages this.. Don’t know what’s the fund in taking the cash from home loan borrower directky without giving the receipt…

      • April 23, 2012 at 7:23 AM

        Hi Chetan,
        Thanks for the clarification. But I do remember in my case I have paid everything as DD to registrar office [Please refer my Step 10, Output documents]. I havent paid single amount to SBI apart from the processing fee which I paid as cheque.

  6. February 9, 2012 at 1:11 AM

    Can we demand a DD in buyers name ?! I mean so that the seller could get the money in cash.

    • February 9, 2012 at 7:58 AM

      Hi Vivian,
      I am not sure about this. But I dont think bank will allow it. But when I took the home loan, I also took a interiors loan along with it and for interior loan normally bank will disburse the DD in the name of either the interior contractor or to you if you provide the bills claiming that you have paid the amount to the interior designer. Similary you can check with your builder whether they can give you a receipt saying they got cash from you for the amount for which you are planning to get DD and then later ask the bank to give the DD in your favour. But I am not sure on this. please check with the bank for confirmation.

  7. Himanshu
    February 11, 2012 at 11:37 AM


    A very informative blog which ideally shud have been in SBI’s site..

    I have one question on step 9. How we do request for subsequent payments from bank ? Do we e-mail the self attested scanned copy of demand letter and request letter to branch ? Within how much time do they prepare the cheque ? Do we need to go to the branch and get something done in person ?

    • February 11, 2012 at 2:19 PM

      Hi Himanshu,
      Thanks for the comments.As you mentioned for the subsequent payements you can just send an email to the sbi manager who is assigned to you from the special branch along with the scanned copy as attachment. I think atleast one day before you need to notify them via mail/phone so that they can prepare the DD

      • Himanshu
        April 19, 2012 at 11:33 PM

        Hi Jerin

        Thanks for replying on that but is the process still applicable ? I emailed my branch in Gurgaon, like always they did not respond. When I called them up they said they SBI has stopped entertaini g requests over email which I seriously doubt is the case. any recent experience of yours ?

      • April 19, 2012 at 11:39 PM

        Hi Himanshu,
        My experiences are with the Special Home loan branch of SBI, which as of my knowledge are only two in India, one in Chennai and one in bangalore. I am not sure about the practices followed by normal branches as it is totally different. For special home loan branch, the chief manager of that branch itself can sanction a loan, which makes the sanctioning faster where as for normal branches, it has to go to the Head branch(RACPC i guess) to get it sanctioned.

  8. Abhishek Anand
    February 21, 2012 at 8:49 PM

    Good to see such a compilation. makes it easy from here on. Just a quick question. What is a tri partie agreement specially for SBI?

    • February 22, 2012 at 8:16 AM

      Hi Abhishesk,
      I am not sure how correct i am on tripartite. As per my understanding Its basically a agreement between the three parties involved (Buyer which is us, Vendor which is builder and the Financier which is SBI/any other bank). This is required only in the case of a ongoing construction. But normally all the banks/builders have a standard template for this. In my case I checked with the builder and they had a a template and they gave it to me and it worked.
      Please refer the following link for a sample tripartite agreement template from united bank of india

  9. Vinu
    March 8, 2012 at 1:57 PM

    Excellent brefing..Thanks

  10. Prasad
    April 11, 2012 at 4:52 PM

    Hi Jerin,

    Thanks for giving lot of information. I am also palnning to take house loan from SBI. I met customer relationship officer, sbi , indiranagar. I submited set of legal documents and slae agreement. He told he would send those to his advocate. once advocate gives clearance, then i have to submit application with required documents.is it step5(submiting documents) what you mentioned.I also asked him whether i have to roam for loan process.He told, once loan sanctioned once i have to go
    to head office and submit the documents for documentation.My builder told me to go for AXIS bank
    as SBI loan process is slow, but i am going for SBI as it is nationalized bank. Am i taking risk? Usually how long it will take?

    My builder already collected 0.1% for franked notary charges and he also told incase of SBI it is 1%.But SBI manager told it is 0.1% only.I want to know what are the current charges?

    SBI loan required guarantor, I thought to go for insurance to avoid guarantor and discussed with SBI manager. Do you know which is good insurance, if it is lower premium it will be good for me.Here objective of taking insurance is to avoid gurantor not to get benifit from insurance. Can you suggest good insurance for house loan? In loan application they mantioned SBI Life Rinn Raksha Policy, should i go for only that policy or can i select different policy?

    Have faced any problem with SBI for releasing money?

    • April 12, 2012 at 10:16 AM

      Hi Prasad,
      Thanks for your comments. Regarding your Questions
      1. Is it step5(submiting documents) what you mentioned?
      Jerin: In my case I have got the loan from SBI special home loan branch Jayanagar. There you may have to do most of the work including getting the legal opinion and valuator statement etc, bank will just do the sanction, once everything is there and verified. So in this branch usually the loan gets sanctioned much faster as we are doing most of the work. Downside is that we have to do most of the work. The pros and cons of special home loan branch is posted in https://jerinjoseph.wordpress.com/2011/02/02/pros-and-cons-of-special-home-loan-branch/

      2. Am i taking risk? Usually how long it will take?
      Jerin: I also went for SBI because of the same reasons(Nationalized bank]. One more thing is that with SBI there wont be any hidden costs/other charges unlike HDFC/ICICI and also their legal verification are much stricter than any other banks which gives us a good confidence about the property. I am not sure of other banks. As I mentioned in the question 1, special hoem loan branch normally takes max 8 days to get it approved. But in my case it took approximately 3 weeks as there was some audit going on in the branch.

      3.My builder already collected 0.1% for franked notary charges and he also told incase of SBI it is 1%.But SBI manager told it is 0.1% only.I want to know what are the current charges?
      Jerin: In my case I paid 1% during Jan 2011 timeframe[refer step4]. I am not sure of the current charges. But when i took loan also I heard different banks asking different percentages. Also one more thing to note is what ever amount this 1% which we pay can be reclaimed if we do the final registration at the actual price than at the guidance value. [But there are some conditions on that and I am not sure about all those things, heard the estamping/franking and final registration has to be done on the same registrar office]

      4. Regarding Guarantor?
      Jerin: in my case I went with the guarnaor and it was the easiest for me as already my brother inlaw had taken a home loan from the same branch. So I just need to quote their loan account number to the bank. I am totally ignorant/unaware of the insurance.

      5.Have faced any problem with SBI for releasing money?
      Jerin: I never had any issue with that.

      • Prasad
        April 13, 2012 at 11:05 AM

        Hi Jerin,
        Thanks for giving quick reply.

  11. Pavan
    April 21, 2012 at 11:36 AM

    Thanks for the fantastic explaination.
    I have one query:
    Shall I go for rinn rakshak insurance policy or any other term insurance? I came to konw today that in SBI rinn rakshak, sum assured decreases whn principle of loan amount decreases during tenure, for eg: say i go for home loan of 30 lakh and if i opt for rinn rakshak plan, sum assured i 30 lackh…say down the line, after 5 years my principle of loan amound decreases to 20 lakh ( either by doing pre payment or with EMI) automatically sum assured also decreses to 20 lack…which i believe is crap….where in if you opt for any term insureance plan, Sum assured remains same for entire tenure…

    Kindly correct me if my understanding is correct and should I go for Term insurance plan by rejecting SBI rinn Rakshak.


    • April 21, 2012 at 3:08 PM

      Hi Pavan,
      Thanks. Sorry I wont be able to help as I am totally ignorant about the Insurance.

  12. Manav
    April 24, 2012 at 9:41 AM

    Is SBI SPB on St Marks Road is a special home loan bank branch as well? It is called as Specialized Personalized Bank though. Also are you aware about the documents to be submitted when a resale flat to be purchased which is still not registered? Meaning, the builder has sold the flat to person X and person X now wants to sell the flat to person B which is still not registered.
    Thanks for your help.

    • April 24, 2012 at 10:43 AM

      As far as I know there is only one SBI special home loan branch in Bangalore, which is in Jayanagar 4 th Block near the BMTC Bus Depot. For your second question, I think there is no change in the list of documents as this is some what exactly the same case where you are buying the flat from a land owner share instead from a builder share. The documents will remain same I guess. I am not 100% sure. You can walk in to the SBI special home loan branch on a sunday [They are open on sundays] and they will guide you properly.

  13. Prasad
    April 25, 2012 at 10:04 AM

    Hi Jerin,
    I have few doubts

    Property Valuation:
    Is there any chance property valuator may estimate property value lesser than buying price?

    Documents for applying House loan:
    I have all the documents with me except following documents

    1.Plot allotment certificate from builder ( This builder mentioned in sale agreement, is it ok or i have to take seperate document for this)
    2.Cost breakup (Builedr mentioned payment schedule in sale agreement, is it enough?)
    3. NOC from Builder (When i have to submit this doc while applying(step 5) or documentation(step 7)?)

    NOC from the builder SBI mentioned it should be in the format of SBI bank.I saw the format, all these details are already included in sale agreement, do i need seperate doc for this? Can you please help?

    • April 25, 2012 at 10:31 AM

      Hi Prasad,
      Is there any chance property valuator may estimate property value lesser than buying price?
      Jerin: I also had the same fear. but normally it will never happen. Also the valuator’s price in my case was around 6 lakhs more than what the builder has quoted. So dont worry about it.
      I have all the documents with me except following documents 1.Plot allotment certificate from builder ( This builder mentioned in sale agreement, is it ok or i have to take seperate document for this)
      Jerin: I am not sure on this. Please check with the bank.

      2.Cost breakup (Builedr mentioned payment schedule in sale agreement, is it enough?)
      Jerin: yes that is more than enough. I also had it in the agreement.
      3. NOC from Builder (When i have to submit this doc while applying(step 5) or documentation(step 7)?) NOC from the builder SBI mentioned it should be in the format of SBI bank.I saw the format, all these details are already included in sale agreement, do i need seperate doc for this?
      Jerin: In my blog its in Step8. Also i dont remember any particular format for NOC. Only for tripartite agreement they wanted in some format and one of the sample format is mentioned in one of the comments. please search for tripartite in my blog. Also NOC is seperate and Sale agreement is seperate, So u need to have NOC.

    April 26, 2012 at 3:05 PM


  15. manu
    May 1, 2012 at 9:57 AM


  16. mathew
    May 9, 2012 at 1:00 PM

    Hi Jerin,
    SBI Home Loan branch asked me to take a SBI Life cover. Is it mandatory. If I have a joint loan with my spouse, then in case of an eventuality happening to myself, will the whole home loan burden will be taken off?

    Also it would be good if you can mention about how to get reciepts of the amount we pay towards interest and principal.

    • June 7, 2012 at 7:58 PM

      Hi mathews,
      Sorry for the late reply. SBI life cover I also have taken it. But I dont think its mandatory. Infact mine was also a joint loan and I am also think all the burden should be taken off. But I am not 100% confident as I havent done much research on it.
      Regarding the receipt for payment towards home loan, every year you can request for a statement(free of cost for 1 copy, some additional payment if you request multiple times) and they will either email you a soft copy or prepare a hardcopy which you can collect it from the spl home loan branch.

  17. wilson
    May 21, 2012 at 5:00 PM

    i am planning to buy a land which is having ‘A’ khatha and dc converted. i want to know what are the property documents required for buying the land by sbi

    • anjay kumar
      April 17, 2015 at 2:17 PM


  18. Gaea
    May 31, 2012 at 7:58 PM

    Hi Jerin

    I am building a house. I am too new to bank procedures. My latest problem is, my contractor is refusing to buy construction materials first and then collect money from the bank. He wants me to provide him with the money first. But the bank refuses to release the loan money without the bills. I do not have money to give the contractor!

    What is the disbursement process of a home loan? Do I have to submit the bills (for construction materials bought) first and then collect the loan amount from the bank? Is there no other way? Please let me know if you can help me with information.


    • June 7, 2012 at 7:49 PM

      Gaea, I cant help you here as I have got home loan for an apartment. Please check with the SBI bank.

  19. jibin babu
    June 7, 2012 at 7:39 PM

    Hi Jerin,

    Thanks for the post , it’s really helpful..

    I have applied for SBI home loan… I am purchasing the flat directly from the landlord (not builder)… He is asking me to register as per the current market value not the actual cost.
    Whether it’s possible with SBI ? since I have the sale agreement saying the actual cost of the flat.


    • June 7, 2012 at 7:46 PM

      Hi Jibin,
      I am not sure about the current situation. But atleast 1 year back, when I applied, they allowed me to register at guidance value.

    • Rahul Lodha
      July 13, 2012 at 2:15 PM

      Hi Jibin,

      Do you have the Tripartite agreement format which was applicable for you as you have purchased from landlord? If yes, please e-mail me at rahul.lodha@gmail.com


  20. Leonard VA
    June 26, 2012 at 10:48 AM

    Hi Jerin,

    We have a property and would like to construct a house…we plan to take a construction loan from SBI as we have a SB account there.

    Can you help us in letting us know couple of things:
    How does the disbursment schedule work

    Thanks and Regards,

    • June 26, 2012 at 10:52 AM

      Hi Leonard,
      Please refer Step 8 and 9 for the same..

  21. Sujata
    June 26, 2012 at 12:45 PM

    hi Jerin,
    thanks for putting up the info in a fantastic manner! you’ve done a gr8 job 🙂

    I have one doubt:

    The bank usually pays 80-85% of the actual amount. Do we need to pay to the builder the rest of the amount before the 1st disbursement is done by the bank ? I mean, is it possible that the bank starts disbursing the loan amount first and we pay from our pocket towards the end, or as and when we can..

    • June 26, 2012 at 3:04 PM

      Thanks Sujata.
      Regarding your query on the payment from SBI. SBI will not give you the disbursement unless we show them that we have paid our portion. This needs to be shown via receipts as well as the cheque/DD photocopies. In my case I applied for the loan, when the building was 85% complete and SBI mandated that I need pay the 20% of the 85% from my side and once i produced the receipts for the same, tehy disbursed the remaining amount.

  22. Hemal Salian
    June 27, 2012 at 5:08 PM

    Hi Jerin,
    A very helpful article.
    i have a doubt… I am planning to buy a house which is in under construction stage and it will be ready after 2 years… now in that case if I pay 20% now to book the house… at what stage I am supposed to do registration? I mean registration is done while flat under construction or after the flat is ready?

    also once registration done.. then i will apply bank for loan… so will bank disburse the amount after flat is ready or in between construction?

    While the flat is underconstruction stage… how many part payments are we supposed to make?

    Looking forward for your reply. Thanks in advance for help

    • June 28, 2012 at 12:40 AM

      Hi hemal,
      To answer your question. I am not 100% confident, but I believe normally registration is done after the flat is completed, but I have seen many people registering much before the flat completion. I dont think SBI will allow registration before completion of project, atleast that’s the answer I got when I enquired.
      Regarding your other question, its not a mandate that you should give your 20% share initially only, but giving ur full 20% share initally is a good option as you dont have to pay interest for that.

      so will bank disburse the amount after flat is ready or in between construction?
      Bank will disburse the money anytime once the loan is sanctioned and you show the demand note. Also please remember while applying the loan you need to get a letter from the builder regarding the schedule of payment, like at 40% of completion you need to pay 40% of the total amount some thing like that. So Bank will cross check that schedule along with whether you have paid the 20% of that and then only will disburse the amount. For more details look at the reply which I have given to Sujata.

  23. Sahil Bansa
    July 4, 2012 at 9:21 AM

    Thanks really helped me my project…

  24. Aishwarya
    July 6, 2012 at 4:30 PM

    Hi jerin

    Your blog is wonderful with a lot of information .Well done. I have a query. We have booked the under construction flat for 25.6 lakhs in mysore and intends to take a loan from SBI. The value mentioned in the agreement is 25.6 lakhs ,but the builder says that he would register the sale deed after 6 months as per the guide line value only which comes to only 13 lakhs. Registration will be after 7 months when the flat willl be ready. If the sbi sanction loan for 21 lakhs (loan iam asking)
    and if the sale deed reflects the lesser amount ie 13 lakhs ,will SBI object at later stage and will i get into problem. please reply at the earliest as Iam very confused as the builder says that it is the normal procedure to do so . He says the pvt banks does not object and He is not sure about SBI.

    • Guru
      July 19, 2012 at 12:17 PM

      Hi Jerin,

      Wonderful post. It was a good experience to understand things in detail before taking a home loan from SBI. Today I had approached SBI Spl Housing Loan Branch this branch for a home loan and they were saying that I need to register the property at Market value and not guide line value. Do you know which manager of SBI had said / allowed you to register at guideline value so that I can also approach the same person.

  25. July 13, 2012 at 4:46 PM

    I HAVE A PLOT FOR CONSTRUCTION I WANT TO TAKE LOAN FROM SBI…is this is http://goo.gl/tlqro alright or not

  26. July 16, 2012 at 12:26 PM

    Hi there! I would just like to give a huge thumbs up for the great
    information you have here on this post. I will be visiting your website for
    more groovy info soon.

  27. Sudarshan.B
    July 23, 2012 at 1:05 PM

    Hi Jerin,

    Can I know which insurance is better for home loan.SBI rinn rakshak or some other?

  28. praba
    August 1, 2012 at 8:49 PM

    could you please tell me why there would be delay in getting legal opinion from the builder.Builder always say he has not received the legal opinion from the SBI lawyer for past 4 months.How much time does it take normally?
    Please reply.

  29. Deepak
    August 25, 2012 at 4:15 PM

    What is equitable mortgage & Registered Mortgage , let me know the difference & security of HL

    • PRINCE
      August 30, 2012 at 12:43 AM

      Equitable Mortgage is physically handing over the title deed of your property to bank and executing a Memorandum of Deposit in the registrar office which costs you less money compared to a Registered Mortgage where u will pay a percentage of Value of the property as Registration fees.

  30. Sivakumar
    August 27, 2012 at 5:50 PM

    Hi Jerin,

    I have taken loan from SBI and it is now 3 rd year running.
    I have a doubt when builder collecting the registration charge from me.
    My flat area was 1000 sq. My flat cost is say 20 lakhs. I have taken a loan for 15 lakhs from SBI(My own interest and i have taken from SBI – not builder suggested Bank).
    If i want to do the registration, the builder is asking to pay me the registration charge for full value.
    Say for flat cost is 20 lakhs, then it is coming around rs.2 lakhs. But those who took the loan from other private banks HDFC, ICICI (where these are builder suggested banks when i wanted a bank for home loan) the registration amount are 1 lakhs. As per them they will show only the bulidng cost is 10 lakhs and doing the registration.
    Please advice me, what is the benefit if i do registration for full amount / partial amount?
    If the loan getters from other bankers are not cheating the government by showing the less value?

  31. August 29, 2012 at 12:04 AM

    Hi Jerin, very informative post. I really appreciate your efforts for same.
    I m interested in buying apmt, and little confused over service tax and vat.
    Builder is showing a calculation of S.T of 12.36% on (25% of Basic+CarPark+Water+Power) and VAT of 4% on Basic+CarPark+Water+Power. Do you know if this is correct or did you pay similar?

  32. Mukund Deshmukh
    September 3, 2012 at 10:06 PM

    Great Info.. Thanks !! I have read almost all the posts.. Thanks to all.

  33. blore buddy
    September 10, 2012 at 4:25 PM

    Hi. Thanks for this blog entry. You have mentioned in STEP 11 the following. Registered Mortgage Deed [Only mandated by SBI, HDFC and other banks dont mandate this] what is this?
    How much it cost to de register in your name after loan is paid back?

  34. mahendra patwal
    September 21, 2012 at 12:59 AM

    hello jerin, i went to a property lawyer and understood that i would not be able to get a loan sanction from sbi as the property papers do not include succession certificate. so now i am planning to borrow from other private banks, would be very helpful if you suggest me an appropriate bank. moreover, i have applied for a loan in indiabulls, so what are your comments about it.
    will it be possible for me to transfer my loan to sbi in the future.
    thanks in advance

  35. Arup Bhanja
    September 24, 2012 at 3:20 PM

    Nice compilation and explained in proper steps!

  36. anand jetha
    September 26, 2012 at 2:39 PM

    I need to ask that whether sbi can charge dd commission on the demand draft they have issued for disbursement of loan.

  37. Praveena
    October 4, 2012 at 1:27 AM

    Very Useful article.
    I have taken a home loan from SBI in Jun 2012. I have now been asked to do the mortgage registration immediately. Is this really required? when enquired in the registrar office, i was told that it would cost 4% of loan amount (stamp duty) + 1% of loan amount (regn fee). No one in the bank informed me about the registration procedure.I’m at shock, i must say. Till date i was happy thinking that SBI is transparent and had no hidden charges. But now, i have started thinking if i should transfer my loan to some other bank that does not require this procedure.

  38. Praveena
    October 4, 2012 at 1:29 AM

    Very Useful article.
    I have taken a home loan from SBI in Jun 2012. I have now been asked to do the mortgage registration immediately. Is this really required? when enquired in the registrar office, i was told that it would cost 4% of loan amount (stamp duty) + 1% of loan amount (regn fee). No one in the bank informed me about the registration procedure.I’m at shock, i must say. Till date i was happy thinking that SBI is transparent and had no hidden charges. But now, i have started thinking if i should transfer my loan to some other bank that does not require this procedure.
    Please tell me if there is any other work around. I appreciate your help/input.

    • Rajeevi Shyam Advocate
      October 13, 2012 at 7:13 PM

      Praveena I am Rajeevi Shyam Advocate on the panel of State Bank of India and just happened to glance at this blog by way of Chance and I haven’t read all the comments but as far as stamp duty for registration you may have got it wrong it is point five percent of the loan amount as stamp duty and point five stamp duty for registration. Kindly observe it is only point five percent. and if you really go to see for every DTD every applicant pays the .5% as stamp duty only here the DTD is being registered and every bank is registering the DTD. So it is not 4% and 1%. there must be some wrong information that you have received and Jerin Joseph you have done a great BLOG about the Loan process details. which I am sure will help many customers. Thanks

  39. Sanjeet
    October 17, 2012 at 1:06 PM

    Really helpful .Thanks for Sharing! 🙂

  40. October 17, 2012 at 7:09 PM

    Hi Jerin, Nice blog. It’s very interesting. We have just visited SBI electronics city today for a home loan. Builder has got approval from SBI Indra nagar branch. What is the use of having approved at Indra nagar and I have to submit all papers related to builder to SBI electronics city. When I ask the builder he says its already approved by SBI and asks me to go to Indira nagar which is too far from my home and work. In what way the approval at one branch of same bank help me in the process of getting a quicker sanction? As discussed with an official at electronics city he said 20- 30 days from today if all papers are given at first instant. If I go to Special home loan SBI at jayanagar, will the same apply with respect to document submission related to builder?

  41. Manju Pradeep
    October 30, 2012 at 3:34 PM

    We have a GDA flat in IndiraPuram, Ghazia bad ( Uttar Pradesh ) & have taken a loan from DHFL Finance Housing loan , running the loan last 10 months period . We would like to transffer the loan to sbi, so that pls advise Is it possible to transfer SBI.

    pLS REPLY as soonest. Thanks, Manju Pradeep.

  42. Ganesh
    December 3, 2012 at 5:16 PM

    Hey i have applied home loan in a local sbi and it got processed for abt 20 days now with legal valuvation details my application has been submitted to RACPcC when can i expect a acknoledgement from them.

  43. pandian
    December 3, 2012 at 9:09 PM

    thanks. very informative. recently i got my home registered, took loan from SBI.

  44. Ganesh
    December 4, 2012 at 5:00 PM

    Hey guy s
    Pls explain

    Do we get any acknoledgement no once our application reaches RACPC?, my application was submitted on Dec1 and i dint receive any sms or mail from them regarding acknoledgement no.

    • pandian
      December 5, 2012 at 9:33 AM

      dear Mr Ganesh
      They (SBIRACPC) will send an email after your home loan gets approval (submission to approval letter time: 1-2months). In that mail they will ask you to bring and couple of documents (tripartite ) to get ready. You need to call them (in a specified number, given in that mail) and fix your appointment for the final approval process. Often builder guys help in this process. In my time, SBI has asked to me to come to bank and do the approval process on a sunday.

      • Ganesh
        December 5, 2012 at 10:55 AM

        Dear Mr pandian

        Thank you
        I am purchasing a ready to occupy flats and all legal valuvation and sbi bank manager visits all have been completed.
        Now all the reports are in RACPC when can i expect them to process.
        Dec 1st all was submitted it seems, how long will it take for approval and when can i expect a call.

        Pls explain.

        Thank you.


    • babu
      April 9, 2013 at 4:29 PM

      Hi Ganesh
      Hope you got loan dna do let me know the following please
      -How many after you receive SMS from the date of application submitted to the branch
      -after receiving SMS , how long it took for documentation and when your loan was santionced

  45. Abhinav
    December 4, 2012 at 5:14 PM

    Hi Jerin,

    never have the loan process been explained so simply but efficiently.

    I am planning to follow your suit. but needed few additional information to proceed , hopefully you or any other person in the group can help. I am booking a property in HSR and am currently living there only, can you please help with the identification of nearby advocate and property valuator approved by SBI, or could at least tell me how to know the names of such persons around me.

    Please guide me.

    • Rajeevi Shyam
      December 4, 2012 at 5:39 PM

      abhinav if you are buying a flat and if it is already approved then you will have to approach a particular lawyer who has verified the documents. you can ask the builder for the details. the nearest SBI Branch will refer you to a lawyer

      Rajeevi Shyam

  46. Dinesh
    December 4, 2012 at 5:54 PM

    When this mortgage registration charge of .5% is effective from ?I happened to speak to many of my friends completed their home loan 6 months back and they never paid apart from the reg charges say less than 5k or so. If person applied for HL for 40 Lakhs has to pay an additional 20K to the registrar ?So does this apply the same while we close the loan as well? Thanks in advance for the reply. Dinesh

  47. Dinesh
    December 7, 2012 at 2:29 PM

    Hi Jerin or Rajeevi,

    Could you pl help me to clarify my above query?.5% of home loan is mandate for the Mortgage?and when is this effective from?I have couple of my friends taken loan from SBI and they had not piad this much during their mortgage and wondering what is the reasoning behind this?

    Appreciate your reply and help on this.Dinesh

    • Rajeevi Shyam
      December 7, 2012 at 11:23 PM

      It Is .1 percent of the loan for stamp duty and registration .1 percent or a maximum of rs.10,000 this is for dtd of the lOan but If it is mortgage it is .5%

  48. December 12, 2012 at 1:35 AM

    Undeniably believe that which you stated. Your favorite justification seemed to be on the net the easiest thing to understand of. I say to you, I certainly get annoyed while other people think about issues that they plainly do not recognize about. You controlled to hit the nail upon the top and also outlined out the whole thing with no need side-effects , people could take a signal. Will likely be again to get more. Thanks

  49. NISHI K
    December 23, 2012 at 7:21 PM

    I took SBI max gain home loan during under construction of flat. Now Flat is ready and I got registered the flat and full disbursement of loan done. now I would like to take further loan for interior of flat.
    My question : Is it possible to take further loan for interior? if yes. how much maximum?
    When I asked RACPC kormangala. They told me that you can take further loan after one year of loan sanction .
    But when I approached SBI branch manager Indiranagar. They told me Yes I can take after registering the property.
    Please clarify.

  50. reddy raju
    January 6, 2013 at 11:33 AM

    thank u for ur detailed explanation ,it made easyt to me

  51. mukesh
    January 7, 2013 at 3:57 PM

    hi, can u suggest me some SBI approved property valuator in bangalore…

    • January 9, 2013 at 3:28 PM

      Hi Mukesh,
      Contact the nearest SBI home loan branch and they will help you.

  52. Jeny
    January 9, 2013 at 2:44 PM

    Hi…How can I find a Advocate and & Valuator belonging to SBI Panel?I live near Basweshwara nagar,Bangalore

    • January 9, 2013 at 3:29 PM

      Hi Jeny,
      To be on the safer side contact the nearest SBI branch to get that info. Coz what I heard(not sure) was once in while both valuators/advocates needs to get re-certified to be in the panel.

      • Jeny
        January 9, 2013 at 4:51 PM

        thank u

  53. Bino
    January 10, 2013 at 4:40 PM

    Hi Jerin,
    Can we demand katha transfer before the registartion of a flat as it will take a long time after registration. Also we may not get any great help from the builder after registration? Awaiting your reply……….

    • January 11, 2013 at 12:23 PM

      Hi Bino,
      Demanding Khatha transfer before registration is not gonna help as I think to get the khatha Project should be complete and registration should be done. Getting the required documents for Khatha transfer from the builder before he leaves will put you in a better position.

      • Bino
        January 11, 2013 at 5:30 PM

        Thank you for your reply. Could you plz suggest any other fast loan processing SBI branch in bangalore? SBI specialized branch only process loans with a minimum amount of 25 lakhs.

      • January 15, 2013 at 11:22 AM

        Hi Bino,
        I dont think any other branches processes as fast as Special home loan branch. When I took the loan in 2011 there was no upper limit for the amount, so not sure from when they imposed this limit.

  54. Sanjeev
    January 20, 2013 at 11:27 AM


    Can anybody help me understand this:

    Total Cost of flat : 35 lacs

    Requested Loan Amount : 25 lacs

    Initial Booking amount : 3.5 lacs
    To disburse cheque by bank(85%) paid other 5% : 1.75 lacs

    Rest : 35 -(25 +3.5+1.75) = 4.75

    When I need to pay this balance amount to builder??

    • January 21, 2013 at 10:33 AM

      Hi Sanjeev,
      Though I didnt completley understood one part of your question (To disburse cheque by bank(85%) paid other 5% : 1.75 lacs
      ) following is what I think and happened in my case.

      In the case of construction ongoing flat, every builder will give a schedule for payment according to the construction progress which they make. Normally this will be part of either Sale agreement/Construction agreement. In order to get the cheque/DD from the SBI, we need to produce a Demand Note from the builder stating that, he had completed this stage of construction and as per the schedule of payment he will be needing X amount of money.

      Considering your same example.
      Also assuming the loan amount you requested is 80% of the total cost.
      Lets assume the builder has completed 50% of the construction and as part of their schedule you have to pay 50% of total cost which is 17.5 Lakhs.
      Now out of this 17.5 lakhs, you have paid only 3.5 as the booking amount so the builder would be needing remaining 14 Lakhs.
      Bank will be giving only 80% of that 14 Lakhs which is 11.2 Lakhs. So the demand note from the builder has to be for 11.2 lakhs to SBI and we need to show to the Bank that we paid the remaining 2.8 Lkahs as the bank will disburse only if we have paid our part.

      P.S: This is what I remember what I have done, calculations are approximate and not accurate.

      • Sanjeev
        January 21, 2013 at 7:01 PM

        Thanks. But I wanted to know if I have requested loan only 60% of total cost and as a booking cost I paid 20% to builder. When the rest of 20% amount I need to pay?

        Hope this is clear 🙂

      • January 21, 2013 at 7:23 PM

        yes now its clear :). I think still the same calculation which I told before should apply. But please do confirm with SBI branch.
        SBI will only look at the demand letter from the builder and check the schedule of payment and see whether it tallies. They will also ask us to show the receipts for the payments which you have done from your pocket. The latter is to confirm that you have paid your contributions and then only they will release the loan amount. So in your case you should pay 40% of the money as per the construction schedule and the demand letter to SBI will be for the remaining.

      • Sanjeev
        January 21, 2013 at 7:04 PM

        builder has provided the Construction schedule and demand letter also..

  55. January 21, 2013 at 8:03 PM

    I have got an appoinment to submit all the documents as last step of approval at SBI.Can you please explain this ?
    5. Obtain an Indemnity on Rs 150/- stamp paper for Regularizing the CMC property which has now come under BBMP note to obtain BBMP Khatha after regularization.

  56. Sanjeev
    January 26, 2013 at 7:40 PM

    Hi Jerin,

    Please help me getting clarity on below topics,

    Q1. If I have chosen a project approved from SBI, Do I need to pay the below amount?
    14,911+200 Please explain.
    Q2. Valuer fees in ur case was 1500/-, Is it a fixed amount by SBI?
    Q3. How you feel after quite one year as a SBI customer? Feedback please.

    • January 28, 2013 at 10:37 AM

      Hi Sanjeev,
      Please see answers inline
      Q1. If I have chosen a project approved from SBI, Do I need to pay the below amount?
      14,911+200 Please explain.
      Jerin: you still have to pay the same irrespective of whether the project is approved or not. E-stamping is to ensure that sale and construction agreement is legally valid.
      Q2. Valuer fees in ur case was 1500/-, Is it a fixed amount by SBI?
      Jerin: The price which I said was the one quoted to me in 2011. So i am not sure of the current charges.
      Q3. How you feel after quite one year as a SBI customer? Feedback please.
      Jerin: Normally once the loan is sanctioned, I think every bank is the same. You hardly need to interact with them other than getting the interest certificate to be given for tax proof submission.So far I havent encountered any problems with SBI. In fact for me I was really surprised when my loan manager(in SBI Special home loan branch) still remembers my name when I went to the bank to collect the interest certificate after 2 years. That kind of bonding I don’t think that you will get anywhere.

  57. Idris
    January 30, 2013 at 11:42 AM

    Hi Jerin,

    Need your suggestion, I have bought a flat which is a resale flat.
    The cost is around 60L and I have applied for loan for 30L.

    SBI is asking me to do registration on full amount/market value(60L), can I negotiate with SBI on this, as I am availing loan for only 30L. Or can I prepare my sale agreement in such a manner where in I can reduce my registration amount.


    • February 1, 2013 at 10:03 AM

      Hi Idris,
      For these kind of queries, please check with the SBI branch from where you are taking the loan.

  58. guna
    January 31, 2013 at 7:22 PM

    I want home loan from sbi. How much time will they take to sanction the loan.

    • February 1, 2013 at 10:01 AM

      Hi Guna,
      It depends on from which branch you take the loan. Special home loan branch from SBI takes a max of 7 days where as regular branches will take more time(I am not sure of how much time as I took it from SBI). Please refer the below post to know about the pros and cons of SBI Special jome loan branch

  59. Sanjeev
    February 1, 2013 at 1:17 PM

    SBI home loan Its really frustrating.. Procedures are so complicated and time taking..
    Not possible to get home loan approved within 30 days… It could take more than 45 days….

  60. jilani
    February 11, 2013 at 3:47 PM

    its usefull thank you

  61. Vish
    February 11, 2013 at 5:16 PM

    Hi what if .. i have to buy a property from Mr X where the title is not yet transferred .. in this case can i still avail the loan ?

  62. Sanjeev
    February 11, 2013 at 6:58 PM

    SBI Home loan omg.. Not suggested if you have only 30-45 days…

  63. GS Karthikeyan
    February 15, 2013 at 11:18 AM

    good information. SBI is best choice for loan. my housing loan under processing.

  64. Swarup
    February 18, 2013 at 5:28 PM

    Hi Jerin,

    I have taken SBI Max Gain Home Loan from SBI in last week of Dec 12 and full amount of the sanctioned amount has been disbursed in Dec 12 only. However till now I have been waiting to get a letter (inland type) from SBI with the confirmation of submission of the documents and other things. However I am not sure how such type of letter is important and what are the factors suppose to be covered in that letter. So can you please enlighten the importance of the letter and how I can approach to Bank to get the same.

  65. Kavitha
    February 25, 2013 at 9:38 PM

    Hi Jerin,

    I have a quick question. My husband and I are the Applicant and Co-Applicant respectively.
    Our Housing loan has been sanctioned and we are waiting for the call from Bank for the next steps.

    I had to come to USA for business trip and my trip has been extended.
    I want to know if :
    * the documents can be couriered for my signature ? OR
    * the power of attorney can be used ? OR
    * it is mandatory that co-applicant should be in person for documentation in SBI ?

    And how long it takes usually from the loan getting sanctioned and call from the bank.
    Please help me on this.

    Nice article BTW.
    Thanks in advance.

    • harish
      July 16, 2013 at 12:47 AM

      Dear Kavitha,

      The documents have to executed in India in front of one of the designated officer of SBI. If you cannot come to India for the documentation formalities,you can execute a GPA(General Power Of Attorney) in favor of your husband in the Indian Embassy, which again needs to be adjudicated in India.

  66. sapna
    March 12, 2013 at 1:17 AM

    i want a loan of 20 lakhs from sbi. i work for a superstore in goa. yet the shop is not registered. so i cant avail the facility of getting a copy of salary from my owner. so will the bank help me out n sanction the loan by mortagaging the property itself?how can i showcase the proof of my income to the bank so that it can give me a loan. kindly advice me at the earliest.

  67. ramesh babu r
    April 2, 2013 at 5:31 PM

    Hi Jerin
    Thanks for detailed step and do let me know the following
    I applied one week back in SBI branch and till now manager had not shared File number and also not forwarded to RACPC.

    * Do we need to apply CRISIL score or bank will do ? If bank meant SBI branch or RACPC will do
    * Whether inspection will be arranged/done by SBI branch or RACPC

    thanks in advance

  68. Rupesh
    April 22, 2013 at 10:55 AM

    this explanation is clear and good for anyone

  69. Rishi
    May 16, 2013 at 11:15 AM

    I have a doubt, though was partially answered in one of the comments above.

    I am buying an SBI approved apt under construction for 60L. I need a loan of 20L.
    Is it possible to initially pay 40L from my packet as and when builder demands as per construction linked payment, and then start the home loan for remaining 20L ? where in bank pays full amount of builder’s demand note.

    this way I will defer the start of Pre-EMI or EMI.

    I ask this question because SBI agent told me that bank will only release the loan % amount from the demand note. i.e if builder asks 5L, bank will release only 1.6L in my case.

    What would be the best option for me?

    • harish
      July 16, 2013 at 12:40 AM

      Dear Rishi.. SBI disburses the amount based on the margin money. Your total property value is 60 lacs. You are planning to pay 40 lacs on your own and rest of the amount through the loan sanctioned for 20 lacs. So it will always run in the ratio of 2:1 i e for every 2 rupees that you pay from your pocket bank is going to disburse 1 rupee. As you have already 40 lacs to the builder remaining amount will be released to the builder by bank as and when demand note is raised. So in your case,you need not pay anything to the builder till the registration.

      Thanks and regards,


  70. May 16, 2013 at 1:03 PM

    Hi Rishi,

    It is possible, Once your loan is approved disbursement is always as per your wish.
    There is always a limit on max loan amount but not on min loan amount.
    But some banks insists that at least you disburse the first installment.

    I will suggest you to apply for loan 1.5 months before (in case of SBI – Its 2.5 months), It will be too earlier if you are going to pay 40 L from your pocket.


    • Rishi
      May 16, 2013 at 1:12 PM

      Thanks Sanjeev,
      I have been told by SBI agent, that even if I pay 40 L initially from my pocket, SBI will pay only 1.6L out of the the 5L asked by builder. SBI will never pay more than the loan % amount from the builder’s demand.
      The same is mentioned in comments above– comment time – January 21, 2013 at 10:33 AM

      I heard other banks normally pay full demand amount.

  71. May 19, 2013 at 10:49 AM

    nice bank

  72. sampath
    May 31, 2013 at 1:52 PM


    I have a home loan running with citi worth 9.6 L ourstanding and number of EMIs (around 14350 p.m) yet to be paid for 112 months more. Interest rate at Citit is 11.75% and i want to transfer to SBI because their interest rate is low. I believe this transfer will help save me some money!!

    My Q’s are,

    1. IS it worth to transfer to SBI from citi?
    2. What is the process for transferring home loan from citi bank to SBI. what all charges i can expect from citi and SBI?
    3. what documents i need to get from citi to apply with SBI?
    4. How long does this process take to transfer from citi to sbi?

    Can anybody throw some light?


  73. suchi
    June 18, 2013 at 3:05 PM

    I am an NRI. I have got the pal sanction home loan from the SBI Bank on the basis of my salary. Now i have submitted all the necessary property documents with registration copy to Bank for further procedure.As i am not in india, i have given the authority to my wife on my behalf as a POA to Bank. I need to ask how many days SBI Bank will take to sanction the loan?? Please guide in details and Thanks.

    • ramesh babu r
      June 18, 2013 at 3:10 PM

      Hi Suchi
      I recently got SBI home loan and it took only 2 weeks for me.
      I gave my application to branch with legal opinion+valuation report. After a week, I got SMS from SBI RACPC that my application was under process. After another week I got SMS that my loan was sanctioned and in another 2 days I got appointment in RACPC to get sanction letter.

      If you give all the required documents, definitely you may get with in couple of weeks of time

      • June 26, 2013 at 11:25 AM

        thanks for the reply Mr. Ramesh.
        I am in touch with SBI Branch Manager. As such she has told me that she will look for Search report and Valuation Report. Its been 10 days now and i am still awaiting for the status. I got the verification call before 2 days. I am doing the daily follow ups also with the Manager. Please let me know what else i can do to make these process fast. Thanks for the help and time.

      • ramesh babu r
        June 26, 2013 at 11:31 AM

        Hi suchi
        I understand that you surrendered application without legal opinion(search report) & valuation report. Instead of running behind bank manager, get the contact of lawyer who’s doing search report and engineer who’s doing valuation and interact directly to expedite your loan..
        (Actually when I submitted application I gave along with legal opinion report & valuation report only)

  74. nitin
    June 19, 2013 at 12:25 PM

    Hi Jerin,

    I have taken 27.20 lakh loan from SBI. Now i want to register the flat @ govt value(i.e 20lakh).
    Is this possible?
    SBI will have any issues?
    what are the consequences?

    Please reply.


    • Rajeevi Shyam
      June 19, 2013 at 9:21 PM

      you have to register the property mentioned in your Agreement of Sale when you approahced the Bank for a housing loan. you cannot register for government rate.

  75. harish
    July 16, 2013 at 12:51 AM

    Nice article 🙂 This will help a lot of people.
    just wanted to update that RACPC takes care of Legal Opinion and Valuation report.
    The stamp duties are also revised now. It is 0.1% stamp duty on sale agreement for this FY

    • July 16, 2013 at 11:11 AM

      Thanks Harish for the information. I will update the blog with the new info.

      • rajeevi shyam
        July 16, 2013 at 12:41 PM

        The fees for sbi legal has increased from 1500 to 3000

      • July 16, 2013 at 1:26 PM

        Thanks Rajeev.

      • harish
        July 17, 2013 at 12:22 PM

        I have bookmarked this page.. will send the link to all my friends 🙂 thank you

    • Rajeevi Shyam Advocate
      July 17, 2013 at 10:43 AM

      Jerin you spelt my name wrong I am Rajeevi Shyam not Rajeev. thanks

      • July 17, 2013 at 11:19 AM

        Sorry For that. Corrected now.

  76. Hari Prasad
    July 16, 2013 at 10:53 AM

    My loan was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review

  77. kariyan
    July 23, 2013 at 11:26 AM


    For my home loan of 15L, 10 L disbursed on 8th Jul. EMI Starts on 10th Aug. As per my calculation approx 8200/- is interest for the 10L, before EMI starts.

    I have my loan a/c and my savings a/c in SBI.

    How this amount will be adjusted, How do I pay?

    Do I need to transfer this 8200/- to the loan a/c before EMI starts?

    Please clarify.

    • harish
      July 25, 2013 at 10:08 PM

      You need to submit the ECS mandate or SI (Standing instruction) with break ups of Pre EMI and Full EMI . If you have opted for pre-emi (moratorium period),you need to pay only the interest component of the EMI on the disbursed amount. The amount directly gets debited from the salary a/c.

  78. July 23, 2013 at 3:28 PM

    Is it possible to take extra loan for Interiors from SBI after Home loan processing?

    • harish
      July 25, 2013 at 9:59 PM

      Yes.. the scheme’s name is SBI Home EQUITY.

  79. Gaurav
    July 28, 2013 at 2:03 PM


    I have taken home loan from Special Housing Finance Branch, Jayangar for the loan amount of 40 lac. When the sale aggreement was done at the time of start of construction, the amount mentioned in the sale agreement was 30 Lac for the undivided share of land and 24 lac for construction value (including car parking)

    Now it is the time for registration as the apartment is ready. We have got the draft of the sale deed from the builder where the sale deed shows the amount as per the guidance value. Flat area is 1300 sqft and the guidance value is 1400/- . The total sale deed value is 18,20,000/-

    Bank is asking for the modifications in the sale deed , they are asking to put the amount for the land value for registration in the sale deed which is 30 lac.

    In this case, the excess charges for stamp duty and registration increases to roughly 70K on my part if I accept this change in the sale deed.

    I have heard from my friends other SBI banks doesn’t have objection to the sale deed where the deed amount is based on the guidance value. From long time, the guidance value is used to calculate sale deed amount and banks have not objected this.

    What does the rule says here from legal prespective, should we go for the guidance value or the undivided land share value in the sale deed? Does the sale deed agreement differs in SBI to SBI branches?

    Please clarify this query/concern. It is urgent for me as I have to complete registration within this week.


    • Sumit
      July 28, 2013 at 10:16 PM

      Hi Gaurav,

      Did you got any response on your query. I am sailing in the same boat and worried as it would levy approx 70 K extra.


  80. Raghav
    August 22, 2013 at 2:57 PM

    Hi Jerin,

    I am planning to buy an apartment in KR Puram. The builder has handed over the link documents along with the investigation report which was prepared by Adinath Nadre & Revathy Associates.

    Builder has guaranteed that SBI would be sanctioning the loan. Could you please confirm if Adinath & Revathy Associates are a part of SBI recognized panel and can we blindly approach the SBI for loan without any need of further scrutinization based on their report or do we need consult the bank directly?

    Precisely need the feedback and your opinion about the Adinath & Revathy associates.


    • August 22, 2013 at 3:15 PM

      Hi Raghav,
      What i heard from others is SBI periodically changes/updates their SBI panel advocates/valuators. So please check with the SBI branch. When I took the loan in 2010, the branch told that they were in the SBI panel.

  81. August 23, 2013 at 9:52 PM

    My home loan is been sanction last week and i had already cleared my documentation part yesterday. Just curious to know what time period sbi wil take to disburse the loan amount. As such i have asked them, they said that they wil open a bank account in my name which will take 2-3days time and then they wil courier me the confirmation letter and after that they wil disburse the amount. Actually i need to pay the balance amount apart from home loan sanction amount so i need to know how many approx days sbi people will take.??
    Thanks in advance.. God bless

    • August 23, 2013 at 10:31 PM

      Hi Suchi,
      In my case after the loan approval, I got the money disbursement as soon as I gave them a demand note from the builder. Since I gave the bank 2 days advance notice for the same, they prepared the DD and gave it to me.

      • September 4, 2013 at 6:50 PM

        hi jerin
        Thanks for your reply.
        I got the disbursement today but it was done 86% not fully. When i checked online it shows “SINGLE SIDED ADVA TL DISB”. I have already cleared all the documentation part and infact given the balance amount apart from home loan sanction amount to builder. Now i dont understand why this people are taking so much time. I have to called them again tomorrow for this but still need your advice. Thanks in advance.. God bless

  82. Aneesh
    August 24, 2013 at 8:58 AM

    Nice post. I am also getting the loan sanctioned. Only one difference observed from the post. From Rs200 stamp paper they increased it to Rs.300.

  83. kris unni
    August 26, 2013 at 11:23 PM

    i will buy a resale flat which is ready for possession. the seller has made the payments and taken possession but the final registration has not been made.. Now he is cashing out by selling at a higher amount. What is the procedure? Will bank give loan of 80% on the whole amount including seller’s premium? What will the builder enter as consideration in the final deed of conveyance since the bank will pay the seller, not the builder.

  84. August 28, 2013 at 10:09 PM

    hello jerin
    actually i want to make a report giving details in taking loan of 2 lakh from bank so would you please help me out how to make report

  85. ajay kumar singh
    September 4, 2013 at 11:41 PM

    Very nice an knowledgeable

  86. Nithya S
    September 24, 2013 at 7:08 AM


    Thanks for the detailed article. It is helpful.
    I have a query on my home loan.
    For a property worth 62L, SBI has sanctioned me a loan of 48L. I have already paid 12L to the builder. (62 – 12 – 48 = 2L)
    So now the builder has given a demand letter for 43L. While getting our loan formalities completed, the concerned officer mentioned they will disburse 43L the next day. Content wit this assurance my husband an myself were finally relieved that the process is complete.
    However SBI has now released only 33L stating we need to pay 3L more from our side for loan disbursing remaining amount.
    There is no clarity or consistency in the way SBI works and we are now stuck between the builder and the bank.

    My question is – is it the general norm in SBI to disburse the amount only after the customer has paid his entire share ? The property is still under construction.
    In my case i have to now pay 2L more out of pocket since sanctioned amount is less than requested amount by 2L


    • September 24, 2013 at 7:40 AM

      Hi Nithya,
      I think thats correct. oyu have to pay the full amount from your side before SBI can disburse the full amount sanctioned. Always the requested amount in the demand note should match with the 20% co-payment from your side.

  87. September 25, 2013 at 1:58 PM

    My application was rejected. Credit Sudhaar was my choice. Initially they were slow. But their counsellors were able to handle all my queries. I will give Credit Sudhaar a positive review.

  88. Puneet
    September 28, 2013 at 8:24 PM

    Hi Jerin,

    I have booked a flat which falls under owner’s share for a joint venture project. I want to go for SBI home loan but today when i contacted builder’s loan department agent, he told me as my flat is owner’s share he needs some extra documents from owner before he can initiate the loan processing.
    He also told that for owner’s share bank disburses loan amount in one go, as my flat is under construction they are talking to Banker and their lawyer to disburse amount as per slab completion.
    I wanted to know if what he is stating is correct or is he just trying to brainwash me to go some private banks ? With so much joint venture projects around this would be a very common problem ?


  89. debapriya karmakar
    October 2, 2013 at 11:33 AM

    hi i have 1 question .
    do i have to deposit any thing? or based on my income how much loan i can have?

    October 3, 2013 at 10:09 AM

    I want panel in SBI for vetting of loan transaction documents

  91. as nagarajan
    October 9, 2013 at 8:14 AM

    whether legal opinion fee is to be paid by the customer directly or bank will pay directly to the lawer is it the same for valuer

    • October 9, 2013 at 11:35 AM

      Hi Nagarajan,
      That depends on the branch. In special home loan branch, you have to pay it yourselves for legal and Valuation.

  92. shaam
    October 17, 2013 at 1:12 PM

    Hi Jerin. First things first.. An usually tiresome and lethargic loan applying process was nicely explained. Among those who would get benefited by this blog, I am happy am one of them. Hats off for such a great job

    My home loan got approved on June 2013. I bought a resold independent house in chennai. The loan amount was 30L INR and agreed for a 5 year tenor with SBI. The registration process had been completed and the amount had been to the seller as well.

    Recently, I was called up by the SBI RACPC and asked to do MOD registration. The cost was 20100 (5100 + 15000). They also had give a document template that had the heading as “Memorandum relating to deposit of Title deeds”. I would like to know whether this is really necessary and what would be the impact if I do it later.

    Thanks for you time and appreciate your reply for this query.

    • October 17, 2013 at 7:18 PM

      Thanks Shaam. I am not sure about “MOD”. But there is something called Mortgage deed which SBI mandates where as other banks dont. Once mortgage deed is registered then the property will be in SBI’s name till the loan is repaid and have to be changed to the owners name after the loan closure. I am not sure about the advantages and disadvantages of it.

      Regarding the title deed submission, everyone has to handover the original registered sale deed to the SBI once registration is over.

    • October 17, 2013 at 7:18 PM

      Thanks Shaam. I am not sure about “MOD”. But there is something called Mortgage deed which SBI mandates where as other banks dont. Once mortgage deed is registered then the property will be in SBI’s name till the loan is repaid and have to be changed to the owners name after the loan closure. I am not sure about the advantages and disadvantages of it.

      Regarding the title deed submission, everyone has to handover the original registered sale deed to the SBI once registration is over.

      • Pooja
        January 15, 2014 at 2:49 PM

        HI , I M POOJA

  93. sunilcherian
    October 21, 2013 at 12:26 PM

    Thanks for the great Blog…. I would also like to know the procedure on closing the loan and the must documentations to be done. Please could you help.

  94. Abhishek
    October 25, 2013 at 2:19 PM

    Hi Jerin,

    I have been asked to get the franking done (from sub registrar office) on mortgage letter prepared by RACPC (SBI). This is for the pupose of construction at site.For franking do all the owners of the site needs to be at sub registrar office or any one will do?

  95. Rajesh
    October 30, 2013 at 2:47 PM

    Very nice information. I just need one more info. Have you ever heard about SLOP charges from SBI. (SLOP is for Supplementary Legal opinion). They have deducted 1000 INR in this regard from my loan account. I just want to know why this is required and if so why customer has to pay for this.

    • rajeevi shyam
      January 9, 2014 at 9:33 AM

      The charges are towards obtaining supplementary legal opinion and for legal clearance. It is nominal legal fees to be paid by applicant for additional legal clearance

  96. Jackson Ghadia.
    January 9, 2014 at 6:54 AM

    Hi sir,
    MOD of Title deeds to registered with Sub-Registrar office and following amount DD to be paid .Rs.5100 & Rs.17,500.

    Kindly advise who has to pay these amount builder or buyer.

    Thanks & regards

    • rajeevi shyam
      January 9, 2014 at 9:29 AM

      Who is creating charge of the property to sbi and is the loan applicant has to pay …hence it is buyer. Builder has no role to play in the mod created by a buyer to sbi .

  97. Roby Mathew
    January 21, 2014 at 12:31 PM

    Hi Jerin,
    Thanks for sharing the information.

    I require a suggestion from you, as i have approached SBI Sahakar Nagar Branch and submitted all necessary documents as required. After their review, they have informed that I could get a maximum of 28L loan (as per the BDA approval plan), where as I wanted around 40L as the original expenditure for construction is estimated app 60L. Even though I am eligible as per my income, they are restricting it to 28L because of the modified approval plan which is coming only to 1900sq ft.

    . Is there a way i can get an approval for higher amount from SBI?
    . Will SBI Yuva Home Loan help in this matter as they are promising 20% higher amount?

    Thanks in Advance,
    Roby Mathew

    • January 22, 2014 at 10:06 AM

      Hi Roby,
      Unfortunately I dont have enough knowledge to answer this query. Sorry for that. Please check with the SBI branch.

  98. Komal Singh
    February 7, 2014 at 10:25 AM

    Hi Jerin,

    Thanks for wonderful article. I have a question, What all costs are included in valuation cost?
    Approved loan amount will be 80% of valuation cost or elibibility which ever is lower + what else?
    Will SBI pay separately for Taxes/ electricity water charges and registration amount?

    Komal Singh

  99. Parama
    February 9, 2014 at 2:59 PM

    Hi Jerin / All,

    I am in process of applying for SBI loan for a resale flat.
    Valuation / legal verification is going on .. Valuator was telling that loan approval and amount will depend on the %of deviation in the approved plan also ..
    Can someone share more info on this ? what is the maximaum % of deviation allowed to still get a SBI Loan ( check your valuation reports ) ..

    Thank you,

    • ramesh
      February 10, 2014 at 6:02 PM

      Hi parama
      Recently I bought one resale flat in Bangalore. SBI valuator informed me that SBI the deviation if its less than 30% deviation . (((I have not seen this in authentic document and in my case it was less than 10% and I did not face any problem)))

  100. ashokjain
    March 1, 2014 at 6:23 PM

    i want to apply SBI home loan on my name for a flat in construction, is it allowed to register flat on my wife name ?

  101. March 18, 2014 at 11:03 AM

    I am govt emplyee and live in village in my parental house. I wanna construct a house for me through home loan to sbi bank. Pl advise me,can i get loan as am living in village?

  102. April 4, 2014 at 8:36 AM

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  103. raj
    May 14, 2014 at 4:30 PM

    Hello Jerin

    Very nice Post and its immensely helpful for me. I liked it very much ! Thanks.

    Some questions –
    I have booked one under construction flat and the completion time is around 14 months. The Sale Agreement and Construction Agreement are done. The bank is asking me to go for registration now.

    1. Is it mandatory to complete the Sale deed and Registration when I go for loan ?
    2. Will the bank process the loan with Sale Agreement and Construction Agreement ?
    3. At which stage should I go for Sale deed and Registration ?

    • May 14, 2014 at 8:45 PM

      Hi Raj,
      Thanks.For your queries. please see the anwers inline
      1. Is it mandatory to complete the Sale deed and Registration when I go for loan ?
      Jerin: Nope/ Registration is not mandatory. But Sale agreement and Construction agreement are mandatory.
      2. Will the bank process the loan with Sale Agreement and Construction Agreement ?
      Jerin: See answer for 1
      3. At which stage should I go for Sale deed and Registration ?
      Jerin: Sale deed and registration to my knowledge are done when the construction is complete and is in a state where you can occupy the flat.

      • raj
        May 15, 2014 at 11:43 AM

        Thanks Jerin for your quick reply !
        Appreciate it very much.

  104. Krunal
    May 20, 2014 at 9:54 AM

    I’ve contacted SBI several times and found they are not interested processing home loan. Even I submitted online application 2-3 times hoping someone will contact but they are living in stone ages and seems to be unaware of online thing. Planning to go with HDFC now, will try transfer of loan to SBI later on. Strictly not recommended SBI for mumbai-Mira road branch.

  105. Vishal
    June 11, 2014 at 11:45 AM

    can you please mail me the process of SBI Staff housing loan . I want to take staff with commerical housing loan. My wife is working in SBI and we have purchased a flat but finding difficult to understand the loan process from where to start .

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  108. June 17, 2014 at 11:47 AM

    Dear all, I am a Builders, My customer has applied and sanction Home loan in SBI. now SBI request to me status of construction and payment request letter to SBUI. how to I write.Do u have any sample?

  109. mamthaharishkumar
    July 7, 2014 at 12:57 PM

    thanks this helped me a lot……

  110. Suresh K
    July 14, 2014 at 6:54 PM

    Hi, i have applied for SBI home loan and is about to clear hopefully soon. I have a house plan approved by town planning cell and i have submitted it along with other documents to the banker. My actual construction coordinates however slightly vary from the town plan by two feet (vastu requirement). Please someone tell, do I need to inform banker before sanction of loan about this. Whether banker has got anything to do with it, as consturction of the home will be as per townplanning except for shifting of coordinates few feet off?? please reply.

  111. V. Khopkar
    July 16, 2014 at 10:56 PM

    Thank you for this wonderful blog that has been helpful to so many. Your kindness in replying to all is particularly important. May I ask for your help: I’ve been informed that:
    1.SBI needs a Memorandum of Understanding between buyer-seller before they sanction a home loan? Is this true?
    2. SBI also does not inspect the flat unless there is a MoU in place? Is this true?
    This refers to an existing flat in a co-op society. I am assuming that you might know the answer to this or somebody who reads your blog might know.
    I thank you again Mr. Jerin Joseph. I am deeply grateful to you for bringing light to an obscure subject.

    • July 17, 2014 at 5:21 PM

      Hi Khopkar,
      1. Memorandum of understanding between buyer-seller: I am not aware of this and I havent done it when I took the loan. If its the Sale agreement you are talking about then its required.
      2. Not sure about MoU, but I believe sale agreement and construction agreement are required for SBI to for inspection for a flat under construction, For a flat which is ready to occupy only sale agreement is required.

  112. mandar Deshpande
    July 18, 2014 at 11:32 PM

    We have taken a loan of rs.35.8lacs in feb 14. at that time i got this much as per my income eligibility instead of 42.40 lacs which was my actual requirement. Now i want to get additional loan of rs. 6.60 lacs as my latest income as per income tax return has increased. Property is still under construction and possesion will be in april 2015. Is there an procedure to enhance the loan amount now in july 14 property cost is 53 lacs.

    July 28, 2014 at 4:09 PM

    Dear Jerin
    i am in tricky situation, i have bought a flat at Pune, and applied for loan from SBI pune CPC
    my loan is under process
    however, since the flat is in both my and my wife’s name the loan documents need to be signed by both of us
    whereas i am at pune but wife is at some other station and due some problem cant come to pune
    i have a general power of attorney notarised
    will that help me in taking loan or do i need to do something else/

    • July 28, 2014 at 4:59 PM

      Hi Pabitra kumar,
      Sorry I am not sure about that. Please check with your branch for the same.

  114. runa81
    August 1, 2014 at 1:59 AM

    hi – you did a great documented – i am planing to buy a flat from a land owner share , in this case is it important to have construction agreement . as he says he will give only sale agreement …please advice

  115. Vamsi Gopal
    August 5, 2014 at 2:42 PM

    Hi,very informative article.I will be very thankful to you if you can answer my questions.
    1) I applied for home loan in SBI.For valuation the SBI appointed engineer charged me 15,000 Rs.I thought it was very high,but they were saying it depends on the value of the land.Is it correct?
    Although I paid 15,000 Rs the documents given by the were faulty.They did not mention my correct name in the document making it invalid.When I enquired about that,they were rude saying we will give the correct document 3 or 4 days later.When I pressed again they were saying you can do whatever you want or you can complain to SBI GM. What should I do in this situation? Unfortunately I didn’t take the bill for 15,000 Rs.
    Thank you.
    Vamsi Gopal.

    • August 5, 2014 at 11:26 PM

      Hi Vamsi,
      To me 15K seems too high..As far as I remember it was 1500rs flat rate. But this was 4 years before and I dont think it can go ten times more in 4 years period.

      • kariyan
        August 6, 2014 at 12:19 PM

        Yes, Rs1500/- I paid in last year. This is a fixed rate by SBI

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  118. mark
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  119. Manish Kumar
    October 6, 2014 at 10:52 AM

    Thanks alot for given Information.Actually I want to take Loan from this Bank.

  120. October 19, 2014 at 12:55 AM

    I am planing to buy one property in bangalore.I got legal opinion also from SBI as planing to apply loan from SBI. My question is that does legal opinion guarantees sanctioning of loan from SBI bank? suppose i enter into sale agreement as i received project approval/legal opinion, so my worry is that after entering into sale agreement,there is any chance that SBI do not approve loan?

    • October 19, 2014 at 6:54 AM

      Hi Ankur,
      Legal opinion doesnt guarantee loan approval. Legal opinion just states that there are disputes or any issues with the property which you are purchasing, where as loan sanction depends on many other parameters like your financial eligibility to repay, CIBIL scores etc

  121. Rakesh
    October 20, 2014 at 2:08 PM

    Hi Jerin,

    Firstly, i thank you for such a wonderful informative post and patiently clarifying all the queries by people like us. Even i have few queries and hopefully you will be able to help me out.

    I am going for an apartment purchase which is ready to move in. Some of the buyers have already moved into the premises from the Feb/March 2014. So, my queries are

    1. The builder says that he will pay the tax only upto 2012-2013. From 2013-14 onwards he is asking the purchasers to pay the tax. For the buyers who got possession before march it makes sense. But i will taking over the possession only in Nov/dec 2014. So should i ask the builder to make the tax payments? How does this work out?

    2. When the property valuator from the SBM panel comes for valuation, will they create a problem since it is ready to move in apartment? The reason am asking this is, the builder asked me to tell the panel advocate that the property in under construction and possession will be given in 1-2 months. The advocate has given green signal w.r.t. all property docs.

    3. The registration will be done at the guidance value which comes at around 36.5 Lac whereas actual value will be 42 lac. So will the SBM/SBI give me a loan of 80% of registration value or total cost?

    4. Will the bank consider the stamp duty and registration charges also while giving out loan?

    5. In case bank gives loan only for registration value of 36.5 lac, then can we add interiors expenses in the total cost and increase the loan amount. If so, is there a cap on the interiors amount that we add to the basic cost?


  122. October 20, 2014 at 2:29 PM

    Hi Rakesh,
    Please see my reply inline
    1. The builder says that he will pay the tax only upto 2012-2013. From 2013-14 onwards he is asking the purchasers to pay the tax. For the buyers who got possession before march it makes sense. But i will taking over the possession only in Nov/dec 2014. So should i ask the builder to make the tax payments? How does this work out?

    Jerin: You need to ask the builder to pay the tax as it was under his possession during that time. You need to pay the tax from the year you purchased the flat.

    2. When the property valuator from the SBM panel comes for valuation, will they create a problem since it is ready to move in apartment? The reason am asking this is, the builder asked me to tell the panel advocate that the property in under construction and possession will be given in 1-2 months. The advocate has given green signal w.r.t. all property docs.

    Jerin: I dont understand why the builder is saying its not complete to advocate if its a ready to move in. As far as i know, valuators job is to assess the approximate price of the property/flat. They wont check whether the flat work is complete or not, where as SBI will send a manager (in my case it was manager as i went for SBI special branch) to inspect the status of the flat before sanctioning the loan. So if the work is not fully complete for your flat (amneties not ready is not a problem i believe) then they may not disburse full loan amount.

    3. The registration will be done at the guidance value which comes at around 36.5 Lac whereas actual value will be 42 lac. So will the SBM/SBI give me a loan of 80% of registration value or total cost?

    Jerin:SBI will give the loan for 80% of the total cost.

    4. Will the bank consider the stamp duty and registration charges also while giving out loan?

    Jerin: I think so.

    5. In case bank gives loan only for registration value of 36.5 lac, then can we add interiors expenses in the total cost and increase the loan amount. If so, is there a cap on the interiors amount that we add to the basic cost?

    Jerin: Apart from the home loan, you can apply for interiors loan for up to 3 lakhs(this is 4 years old info, so not sure whether its correct). But this money you will receive only when the interior work is complete and you submit the interior bills. Once thats done, then a manager will come for interiors inspection.

    • Rakesh
      October 20, 2014 at 3:05 PM

      Hi Jerin,

      Thanks for the quick response. Was not expecting such a quick response. Appreciate that 🙂

      For Point #2:
      My understanding: The land is A khata. The Khata has not been transferred from the land owner to the builder yet. He intends to get the khata transferred directly to the purchaser’s name. I believe ideally this should not be the case and hence he is asking to mention that it is under construction ( in which case the bank will not object that the building is in B khata). I am not entirely sure about this. If you give your advice it will surely.
      The advocate also mentioned that even if the Khata is not transferred from the land owner to the purchaser’s name, as of now, it is fine. But on possession this should be done.

      For Point # 3&4: Are you certain about these? Since, i read it in the net and also the builder ( and the LICHFL manager where the project is pre-approved) mentioned that one of drawbacks of State banks is that they sanction the loans only on the cost at which registration is done and not on the total cost.


      • October 20, 2014 at 3:36 PM

        Hi Rakesh,
        I am not sure about the A Khata, B khata stuff, but logically builder or the land owner who is possessing the property should be paying the tax for the year where the property was in their possession. In my case atleast I havent got the A khata yet as our builder has three complexes as part of the same plan and we will get it only once all the complexes are complete.
        For point 3 and 4, I am telling from my experience. I also heard different things when I went for the loan with SBI. But please check this with the branch to reconfirm as I took loan 4 years back.

      • Rakesh
        October 20, 2014 at 3:43 PM

        Thanks for the clarification. I will cross check with the bank and keep you posted.

      • Rakesh
        October 20, 2014 at 4:10 PM

        Another quick clarification Jerin:
        The builder is asking to mention only the guidance value cost in the sale agreement (which is white money of 36.5 lacs). the rest he is asking us to give in cash directly(for him to save tax). I was under the assumption that no matter even if we mention the entire 42 lacs in the sale agreeement, it will not have any bearing on the registration. As we will be doing the registration on the guidance value which is mentioned in sale deed. And that sale deed and sale agreement are independent. Am I right in assuming so?
        Could you please how it works out.


      • October 21, 2014 at 12:59 PM

        Hi rakesh,
        yes your assumption is right. Thats what happened in my case as well. Dont agree to the builders argument.

      • Nikhil
        February 7, 2015 at 5:32 PM

        “I was under the assumption that no matter even if we mention the entire 42 lacs in the sale agreeement, it will not have any bearing on the registration. As we will be doing the registration on the guidance value which is mentioned in sale deed. And that sale deed and sale agreement are independent. Am I right in assuming so? ”

        [nikhil]: This is interesting, I believe we need to do registration on the agreement value rather on government circle rate. Why government will loose revenue here? Say you did agreemen for property at 80 lacs and government rate for that property is 40 lacs, then are you saying we need to do registartion for 50 lacs only? If yes then how you will pay rest 30 lacs and what would be the seller capital gain here?

      • Nikhil
        February 7, 2015 at 5:34 PM

        Sorry, I meant government rate 50 lacs

  123. October 31, 2014 at 2:11 PM

    I have a basic question regarding SBI housing loan, as I am taking it for the first time.
    It is said that when you take loan from SBI then property will be registered on both You and SBI’s name. Why is that so? Is it same to do so?
    Where as other banks like HDFC/AXIS are not doing so.

    Another point is, when you re-pay complete loan, you’ll need to re-register property back to your name, which will attract considerable amount of fees. How much that amount will be?

    Thanks in advance

  124. Rakesh
    November 8, 2014 at 11:30 PM


    I have a generic doubt w.r.t. all the state banks. I want to know if all the sister state banks lik SBM, SBH, SBT, SBBJ etc offer the same rate of interests and schemes as that offered by the SBI. Specifically I wanted to know if the special offer for women borrowers which is available in SBI is also available in other state banks like SBM, SBH etc. If any one in the forum has an idea, please share your inputs.


    January 5, 2015 at 8:20 PM


    • Rajeevi Shyam
      March 3, 2017 at 7:37 PM

      yes a take over is possible if you ahve not taken it over

  126. Babu
    January 28, 2015 at 8:48 AM

    Thanks for the detailed article.. Appreciate.. Just one query – In step 11, you have mentioned after registering the sale deed and Mortgage deed registration [ EC will have – After this the flat will be in the name of SBI and your name] – Is it so – or will it have only you as the previous owner (Col 5) and Bank as current Owner (Col 6) in EC…

    • January 28, 2015 at 10:02 AM

      Hi Babu,
      I will take a look at my EC for my flat and get back. (Hope I have a copy of the same).

  127. Nikhil
    February 7, 2015 at 5:16 PM

    I have applied for home loan from SBI in hyderabad. Property is not approved by SBI and I am taking home loan of 30 lacs. Can somebody tell me what is the latest Valuation charge for property cost above 1 CR? RACPC folks are telling Rs. 10000 but as per some of the above comments it looks like it is fixed Rs. 1500. Not sure if this got revised recently or it varies from state to stae. From where I can find the exact figure?

    RACPC folk showed me some link where it mentioned that it would be 1/8% of property cost or Rs. 10000 whichever is low. Appreciate any response in this query.

  128. HASHMI
    April 8, 2015 at 5:24 PM

    Hi Sir,

    Your blog is very much informative and I read it every now and then to keep myself updated with real estate scenario’s.

    I have purchased a newly built Ready to Move in Flat in Bangalore worth 50 lakhs , we have taken 37 lakhs as Home Loan from LIC Housing Finance , since there was Women’s Day Offer in LIC , so I got the loan approved with Zero Processing fees.

    However, now when I checked with the LIC Housing Agent who is taking care of my loan for disbursement procedures – he is asking me to Pay 0.1 % as MOD Charges and 600 rs as Central Registration charges plus 3000 for Notary and Franking charges of the disbursement documents .

    These things were not told by him before and now close to 7000 total I need to pay him – which he say it as Disbursement fees ,and says all bank compulsory ask for this fees.

    Could you please help me and let me know if these amount are justified and it is in actual required to pay during loan disbursement.

    Request your inputs,.


  129. ask
    April 26, 2015 at 6:52 AM

    What’s up, its nice piece of writing regarding media print, we all understand media is a
    wonderful source of facts.

  130. anjay kumar
    May 6, 2015 at 6:34 PM


  131. swraj
    May 11, 2015 at 6:38 PM

    Thanks for sharing complete information. It has cleared many doubts about the home loan process.Appreciated!!! nice work!!!!

  132. Sandy
    May 22, 2015 at 2:02 PM

    Hi, After I prepay all outstanding amount of the loan and obtain NOC, whats the next procedure to remove the mortgage deed ? Whether a bank representative needs to accompany me for removing the mortgage in subregistrar office or Me going alone is sufficient ? Is it mandatory to take the help of a lawyer for this ? My bank says they dont send any representative and will only give the originals after I undo the mortgage registration in registrar office.

  133. Hitesh Shroff
    June 15, 2015 at 4:11 PM

    Hi Jerin,
    Needed some details on “Registered Mortgage”. In my case, SBI is giving me home loan and asking me to do “Registered Mortgage with them”.
    So wanted to understand what may be the process and the charges for the same.
    Also, how to get my property back in my name after the home loan is repaid?

    Thanks in advance for your help.

    • Nirmit
      July 3, 2015 at 5:26 PM

      Hi Jerin,

      I have taken home loan from sbi in last july for one of the under construction flat in ahmedabad..but for my job, I came to USA in last august…Now flat is ready and I want to do registerd mortgage. I am not able to come to india for this as I have contract for work in USA. I can give power of attorny to some one in india but SBI said that they can not allow registered mortgage procedure on any power of attorny..so in this case what can I do? Please let me know if you have any idea…Thanks in advance

  134. July 8, 2015 at 10:37 AM

    Hi there, yeah this post is truly pleasant and I have learned lot of things from it regarding
    blogging. thanks.

  135. kiran
    October 15, 2015 at 3:26 PM

    I applied for home loan sbi branch .I wany to know about how much time required for payment to builder from bank after mortgage .

  136. Ketan
    November 25, 2015 at 7:29 PM

    Hi, i was speaking to SBI executive today and learnt that the 80/20 loan disbursement method works this way – Borrower pays x amount, SBI releases 4x amount to the builder. That means borrower does not need to pay complete 20% amount prior to asking SBI to disburse any amount. Eg – In case property value is 60L and with 80% loan amount comes to 48L, borrower can pay 10% i.e. 6L and ask SBI to release 40% 24L.
    Basically 1:4 ratio needs to maintained throughout the payment cycle.
    Has anyone actually availed such schedule? Could anyone confirm on this disbursement facility of SBI (unfortunately it is not mentioned in any of their documents but found its reference on team-bhp forum as well)?

    • November 26, 2015 at 8:40 AM

      HI Ketan,
      I am not sure about this one. But at-least in my case they always paid only the 80% and always they asked for the receipts of the 20% payment done from my side..

  137. January 6, 2016 at 4:33 PM

    The topic is very good. Thank you very for writing the post.

  138. Arjun Jayasimha
    February 17, 2016 at 5:06 PM

    Lovely blog Jerin, thank you so much. I have my loan sanction letter and am going for the documentation to RACPC Bangalore in a few days. I had a question regarding margin money. Should the entire margin money be paid before the documentation, or is it enough if we pay it before registration/disbursement? My flat is ready for occupation and I will take a single disbursement of the sanctioned amount.

  139. Denzil Paul
    May 5, 2016 at 2:49 AM

    Please let me know the procedure of surrendering any property and also about the amount I will get after the auction as per the valuation of the property.

  140. arthi
    June 17, 2016 at 2:39 AM

    Hi Jerin – Would you be able to tell how the valuation of property(For a house) happens?

  141. arthi
    June 17, 2016 at 3:00 AM

    Will SBI sanction loan for the valuation of the property (80%) or the amount what we have agreed with the landlord (80%)? Eg: My eligibility for the the loan is 1.2 Crore but I negotiated property with the landlord for 1 Crore, if the valuation of the property is say 60 Lakhs. how will it work? – Can you help please?

  142. mrs ashok
    November 11, 2016 at 12:28 PM

    I have applied for SBI Home loan..all the documents are completed and the DY Mgr at SBI has asked me to come to the bank and sign the Agreement…
    i requested him to give me a photocopy of the agreement or a specimen copy…He denied saying its 25 pages,,
    my question is …can’t the customer get a photo copy before signing the huge loan agreement..

  143. tejashri m
    January 20, 2017 at 8:30 PM

    hi, thanks this is really very beneficial for me.
    i wanted to ask that , my loan has been sacntion but for having the money VAT bills have to be submitted to the SBI bank, and then onlyi would get the first sum of money. So ,will you please tell me the format of the bills so that i can produce it to the bank?.As i have consulted local deallers for the construction , so i can’t get computerized bills.
    please help me!!

  144. Loansa
    February 27, 2017 at 7:20 PM

    This article nice but needs more comparitive information and 100% Loan Guarantee Lowest Interest Rate & Instant Approval Nationalized Banks.We are Profession All Kind Of
    LOAN providers For Home Loan,Housing Loan,Construction Loan,Mortgage Loan,TakeOver Loan,Loan Against Property (LAP),
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  145. Rajeevi Shyam
    March 3, 2017 at 7:35 PM

    why do you restrict to one lawyers name ?

    • March 6, 2017 at 8:21 AM

      Hi Rajeev,
      I put only one lawyers name because from thats where I got it done. This blog was more of my experience in taking a home loan and is not an official document by SBI. Hence I could put only the ones which I have interacted. More over I am not sure whether these references are still valid as I wrote this 3-4 years back. As far as what I heard SBI keeps on updating their approved lawyers panel.

  146. Basavraj hugar
    March 15, 2017 at 8:38 AM

    I am purchasing flat allotted to investor. There is no agreement between investor and builder. In my agreement investor is first part, myself second and builder is third part(confirming party). What are the documents should I collect from investor. As he have given only allotment letter.

  147. Anil
    April 3, 2017 at 1:26 PM

    i have booked one flat in march 2016 and took loan from SBI . loan instalments also started . Since building is under constructon , bank has release its two instaments according to stages of construction. From last August 16 the builder has stop his workdue to his internal problem. But my loan instaments are regularly credited to bank account. What steps I have to take to stop my instalments till builder starts it work.

    • April 3, 2017 at 4:15 PM

      Hi Anil,
      I am not an expert on this matter, but my understanding is that Instalments are given by the bak only when we give the below info
      1) Demand letter from the builder for the next stage of instalment
      2)Show the bank that you have paid the 20% of the current stage (the receipts from builder should do)
      So whatever bank disbursed as part of the two stages cannot be stopped by now as the builder would have encashed the DD. Future instalments will not automatically go the builder unless you provide the above 2 mentioned things which you wont be doing until the builder starts work. So I think you should be ok. Only problem is that you will be loosing on the interest part.

  148. May 25, 2017 at 3:33 PM

    Looking for a loan without any hassle. Apply online for lowest EMIs on LoanBeku

  149. Paras Maitri
    October 17, 2017 at 12:34 PM

    Do we need submit interior work bill to Bank after Loan approval??

  150. Akash Roy
    February 14, 2018 at 7:45 PM

    Sir, i am applying for a home loan which is about 40% of the cost of my flat.My bank is saying that they will pay the entire amount after the registration of the flat.But the seller is allowing me to register the sale deed until the full payment is being made.So, what to do in this case

    • February 15, 2018 at 9:58 AM

      Hi Akash,
      As per my experience bank(SBI) will provide the DD for the remaining amount(based on your payment schedule based on the construction status) one day in advance to the registraion Day. So if you can convince the builder for the same that would do. Also get in touch with bank as well to confirm whether they can provide the DD before a day as Sale deed will have the DD details.

  1. September 21, 2014 at 1:04 PM
  2. September 23, 2014 at 11:26 AM
  3. September 23, 2014 at 7:57 PM
  4. January 26, 2015 at 9:21 AM
  5. February 2, 2015 at 5:06 AM
  6. February 4, 2015 at 7:00 AM
  7. April 9, 2015 at 9:49 PM
  8. April 16, 2015 at 10:21 PM

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