Purpose – A home loan product for purchase of land for construction of house. This can then be supplemented with another housing loan for construction of house. The construction has to start within two years of availing of the loan.
Special feature: Interest rate for first year is 8% and for 2nd and 3rd year is 8.5% PA (this offer is till 31 march 2010). After 3rd year the customer can choose either fixed or floating based on prevailing SBAR.
Maximum term – 15 years (upto a maximum age of 70)
Quantum of loan – The maximum loan amount is Rs 1 crore.
Rate of Interest – The bank provides the loans in two categories fixed and floating. For loans above 75 Lakh the interest rate will be only floating rate based on SBAR.
Documentation – Salaried individuals need to show income related documents along with 6 months bank statement, for self employed and Business persons, the documentation includes last 3 years income tax returns and Profit and Loss statement of the business activity. The customer has to also provide signature identification from current banker.
Fees: The bank charges a fixed fees based on the quantum of loan. Rs 1000 for loans below 5 lakh, Rs 2000 for 5-10 Lakh, Rs 5000 for 10-20 lakh, Rs 7000 for 20-50 lakh
Checklist before you opt for your SBI Home Loan
- Calculate your EMI to understand how it will affect your monthly budget
- Understand your home loan eligibility before you apply for a loan
- Compare the interest rates of various bank offers
- Evaluate the total loan cost (processing fee + service charges + total interest outflow) you would pay for each offer and zero in on the offer that gives you the least total interest outflow.
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what happens if we dont start construction after 2 years