After reading so many negative reviews about SBI’s service I still decided to opt for SBI only:-)
I was never ready to go with private players like HDFC/Axis(forget about ICICI:-)
I found that HDFC is also offering similar rate, but MaxGain is a plus for SBI I feel. And I trust SBI more than anyone else(I’m not saying they are doing charity, but better than others, for long term decisions - anytime!)
Thanks to one of the reviewer who has given positive feedback about PBB SB Road Pune. https://mouthshut.com/review/State_Bank_Of_India-153331-1.html
I applied for loan on 1st Dec 2009 at PBB SB Rd, Pune, and my loan got sanctioned within 3 weeks, and will be disbursed today!
Record time I guess:-)
Even HDFC guyz had said that it will take 3 weeks! Impressive, right:-)
Here are some of my observations regarding SBI Loan:
The interest rate for first 2/3 years is almost similar for Axis/HDFC/SBI. But for SBI, the interest rate calculation is done on daily reducing balance.
Adding to above point, they create a MaxGain a/c for you. It can be used like a normal saving a/c(they said they will give debit card). So the benefit is that, you can deposit your surplus amount(apart from EMI) into this a/c, and that will be considered for calculating the interest.
So, if I put 1Lac into it, and keep there for 15 days, and then withdraw 50k, then for first 15 days this 1L will be considered while calculating interest.
So whatever amount you pay as pre-payament, that can be withdrawn if you need in future.(obviously, there is no pre-payment penalty)
They offer SBI Life insurance, whose one time premium will also be considered as part of your loan. This is optional.
So overall I found the deal perfect!
Now few things regarding process:
The important document for salaried persons is Form-16 and Income Tax return(acknowledged) for last 2 yrs atleast. Also offer letter/pay slips and relieving letter(if applicable). Bank stmt for last 6 months(salary a/c) and PAN card, address proof.
They would need the proof for the your share you would give to builder. e.g. If your total cost is 30L, and loan amount is 20L, then you need to show either receipts for 10L(paid to builder/stamp duty etc) or the proof of sources(can be your saving/FD/PF/your parents share - then u’ll need the authority letter from them) etc. So the loan amount+ sources= Total cost!
For a normal salaried person, I guess the documents are quite straight forward, and will be easily available.
If you have a gap between 2 jobs for a month or more, then they make a deviation, and need AGM’s approval I guess.
This was your part; but you need to submit the documents from builder. In my case, the project had APF no in SBI(basically already approved by SBI); so not much documentation was required. Otherwise they would make a surge report. Which can consume some time. I guess they are quite strict about it.
Valuation would be required for resale or if loan amount is greater than 20L.
Once you have submitted the completed application with all the docs, then they will send it to central processing cell(RACPC). I got SMS after a week, saying ur appln is received.:-)
They will do normal verification for address proof/Employment.
After the loan is sanctioned(I againg got SMS:-), need to submit the cash amount for various stamps, mortgage fee etc. They would take 12 cheques of SBI a/c for security.(Other bank would need more cheques I guess)
You can link your SBI savings a/c to have standing instruction to deduct EMI.
Then the loan is disbursed based on your share paid and the demand from builder!
Thats it.
I didnt have to make any extra visits(apart from one visit, since they needed updated NOC from builder). I didnt even have to go to RACPC or any other branch.
I found the ppl very co-operative and informative, They would tell u upfront any details u ask.(They offered me tea as well:-p)
So despite of so many negative reviews I would definitely recommend SBI Home loan!(You might have different experience based on the branch, but I guess they are improving! They were regular mid-aged/old ppl but co-operative:-)
Few things which might affect the processing time:
If the project is having some legal or other problems, then they would not process/take time.
If the project is not approved by SBI already, will take time due to surge report.
If your loan amount is > 20L, then valuation is required; which adds some delay.
If your employer is not reputed, then they would make rigorous checks I think.
If you have any deviations like Form 16 not available, gap in service etc. then there would be some delay.
In summary, if you have the documents clear, and if you fit in their rules! then its very much hassle free job!
Hussshhhhhhh!
That was quite detailed one.
Since I was looking for any such information before applying loan, wanted to give as much info as possible to help others!:-)
Hope it helps.
Cheers,
-Sachhi!