Sundaram Finance Limited established Sundaram Home Finance Limited with the aim of making housing loans accessible to both the formal and informal section of society. The company was incorporated in 1999, as a subsidiary of Sundaram Finance Limited.
A joint venture agreement was agreed upon in 2007 between BNP Paribas Personal Finance and Sundaram Finance Limited (SFL) in order to leverage the market potential. In 2007, after UCB attained a 49.9% stake in Sundaram Home Finance Limited, the Company was renamed as Sundaram BNP Paribas Home Finance Limited.
You’re probably eligible for Sundaram BNP Paribas Home Finance if you are
At least 18 years old
Less than 65 years old
Salaried or self-employed
with regular income
Earn more than the minimum
Your Sundaram BNP Paribas Home Finance amount eligibility is based on these factors
EMI limited to about 50% of monthly
Loan capped @80% of property value
EMIs of other loans lower
Increase your eligible Sundaram BNP Paribas Home Finance amount by these steps
Make your spouse a co-applicant,
and her income will add
to your eligibility
Choose longer tenure loan up to 20 years
Alternatively add your parents
Documentation needed to apply for an Sundaram BNP Paribas Home Finance
- 1. Signed application form with photograph
- 2. Processing fee Cheque
- 3. ID and residence proof
- 4. Latest bank statements
- 5. Documentation for salaried applicants:
- Last 3 years Income Tax Returns with computation of Income
- Last 3 years CA Certified / Audited Balance Sheet and Profit & Loss Account
- 6. Documentation for self-employed applicants:
- latest income tax returns
- latest comupation of income
Sundaram BNP Paribas Home Finance Interest RatesUpdated on 26 Oct 2016
Sundaram BNP Paribas Home Finance Details
||9.40% to 10.25%
||1 Year to 20 Years
||Up to 0.5% of the loan amount
||No Guarantor Required
Features of Sundaram BNP Paribas Home Finance:
Sundaram BNP Paribas Home Finance can be used for the following purposes:
- To build a house on plot of land that you already own
- To purchase an existing freehold properties row house/ apartment or bungalow.
- To purchase a house or apartment from a builder
The maximum loan amount that an applicant can avail is given below (This amount is subject to the market value of the property according to the assessment done by the company):
For Home Loan:
- For home loan that is up to 20 Lakhs, 85% of the property value may be availed as loan. This value is determined by what Sundaram BNP Paribas Home Finance Limited values the property to be and what the company finds to be the customer’s repayment capacity.
- For home loan that is between 20 Lakhs and 75 Lakhs, 80% of the property value may be availed as loan. This value is determined by what Sundaram BNP Paribas Home Finance Limited values the property to be and what the company finds to be the customer’s repayment capacity.
- For home loan that is above 75 lakhs, 75% of the property value may be availed as loan. This value is determined by what Sundaram BNP Paribas Home Finance Limited values the property to be and what the company finds to be the customer’s repayment capacity.
Maximum Term of Loan:
- In the case of salaried employees, the maximum term of loan can be up to 20 years or up to the retirement age (whichever is earlier).
- In the case of self-employed individuals, the maximum term of loan can be up to 15 years or until the customer turns 65 years (whichever is earlier).
- In the case of NRI‘s, the maximum term of loan can be up to 15 years or until the customer’s retirement age (whichever is earlier).
Property Insurance Scheme:
A low cost property insurance scheme is offered by Sundaram BNP Paribas Home Finance Limited in association with Royal Sundaram Alliance Company Limited. This scheme makes sure that the property that is financed by the company is protected against various perils so that the customer can have peace of mind. The insurance scheme is effective for the entire period of the loan.
These are the perils that could damage your property and is covered by the company:
- Aircraft damage
- Explosion /Implosion
- Fire, Lightning
- Subsidence, Impact damage, landslide and rockslide
- Riot, strike and malicious damage,
- Cyclone, storm, flood, typhoon, hurricane, tempest, tornado and inundation
- Missile testing operations, bursting
- Earthquake, Bushfire
Sundaram Finance Home Loan Documentation:
Along with the duly filled application form, applicant must submit the following:
- Salary slips of the last 3 months.
- Tax Return -Form 16/Latest Income.
- Last six months’ bank statement.
- Proof of identity, age and residence.
- Profit and Loss Account of the company and individual for last three years
- Balance Sheet of the Company and Individual for last three years
- Copy of the tax paid challan/ Income-Tax Returns of the Company and Individual for the last three years
- Bank statement of the company and Individual for the last six months.
- Business profile and proof of business continuity.
- Proof of identity, age and residence.
Apart from these documents mentioned, SBNPPHFL may also ask for additional documents as found to be required while appraising the loan. For a detailed list of documents that’s required to be submitted please walk into any of the company’s branches.
Sundaram Finance Home Loan Interest Rate:
Kindly visit any of the company’s branches to find out the most accurate and recent interest rate that the company offers. Sundaram BNP Paribas Home Finance (SBNPPHF)’s interest rate is associated with SH-Prime Lending Rate (SH-PLR). The SH-PLR has been reduced to 15.15% p.a. from 15.40% p.a.
Sundaram BNP Paribas Home Finance Eligibility:
To be eligible for a home loan from Sundaram BNP Paribas Home Finance, one must be an Indian national. The borrower can be either an employed individual or a self-employed individual. NRIs can also apply for a home loan. Sundaram BNP Paribas Home Finance considers the following factors while deciding if the customer is eligible for a home loan and how much he/ she is eligible for:
- Monthly income
- Monthly commitments
- Savings background
- Repayment history of other loans if any.
Why apply for Sundaram BNP Paribas Home Finance on BankBazaar.com?
Bankbazaar.com assembles a large number of products and options of home loans in one place so that it is easy to choose the home loan that’s right for you and also get approval directly. Using Bankbazaar.com to apply for a home loan is a simple task as you can compare the pros and cons in one go, and make sure that the features are in line with your specifications. When you apply for a Sundaram BNP Paribas Home Finance Home Loan through Bankbazaar.com, you can use the EMI calculator to check your loan eligibility, find how much you will be spending as EMI and further decide upon the loan amount and tenure. That means planning your budget is made easier than ever. What’s more, you can look out for special discounts and customized deal options you can avail thanks to BankBazaar’s association with various banks.
How to Apply for Sundaram BNP Paribas Home Finance?
Applying for a home loan from Sundaram BNP Paribas Home Finance is simple, quick and transparent. You can simply walk into any of the Sundaram BNP Paribas Home Finance branches to do so. You must have with you your latest income documents such as IT Returns, Salary slips, Bank Statements etc. so that you can find out how much loan amount you are eligible for. Along with the documents you must submit a duly filled application form.
Alternatively, you can call any of the branches and a representative will answer your questions and assist you in the process of acquiring a loan.
If you visit the website the Sundaram official website, you will find the application form. You must print out this form, fill it in and send it to any of the branches along with the necessary documents.
Different Types of Home Loans Available at Sundaram Housing Finance:
There are various types of Home Loans that offered at Sundaram BNP Paribas Home Finance. They fall in the categories of Housing Loan and Non-Housing Loans:
- Loan for purchasing of a residential plot
- Home loans to construct a dwelling unit
- Home loans for purchase of House or flat (either new or resale)
- Home Extension loans which can be used to construct an additional room or floor in an existing house
- Home Improvement loans which can be used for renovation purposes.
- Takeover loans is the loan taken out to pay off an existing loan with another financial institution. This loan is then transferred to Sundaram BNP Paribas Home Finance.
Non-Housing Loans (Only for Resident Indians)
- Non Residential Property Loan (NRPRO loans) - to purchase an office or business space
- Loan against Mortgage of Property (LAMP)
The loans will only be offered if the property is duly approved by the competent authority.
Sundaram Housing Finance FAQs:
- What is my eligibility for a home loan dependent on?
Your eligibility for a home loan from Sundaram BNP Paribas Home Finance is dependent on factors such as monthly income, age, employment, monthly commitments, liabilities, qualifications, assets, savings background and history of repayment of other loans if any.
- What is the applicable rate of interest for a home loan from Sundaram BNP Paribas Home Finance?
The type and quantum of loan will decide the interest rates applicable. In the case of Housing Loans, the interest rate begins at 10.25%. In the case of Non Housing Loans, the interest rate begins at 15.00% and goes up.
- How is the calculation for interest rate on my loan done?
The calculation of interest rate is based on Monthly Reducing balance. The principal reduces each month from your EMI net of interest accumulated.
- What type of interest will be offered for my home loan?
Floating (variable) rate of interest will be offered.
- Who can be a co applicant for a home loan?
Co applicant(s) can also be co-owner(s) of the property in question. However this does not mean that all co applicant(s) must be co-owners. Co applicant(s) are usually, a spouse, parent, child etc.
- Are there any fees and charges that I must pay?
- Along with submitting the loan application, you must pay a part of the processing fee upfront. This amount is non-refundable.
- After sanction, but before disbursement of the loan, other charges such as Documentation, Property & Personal Insurance as well as Cersai charges must be paid.
- At the time of application, what are the documents that I will require?
These are the basic documents that you will be required to submit when you submit your application:
- Last six months’ Bank statements
- Proof of Identity
- Proof of Address
- Proof of Age
- Form16 (Income-tax deduction certificate which has been issued by the Employer)
- Last three months’ Salary Certificate/ Salary slips
Self – employed:
- Proof of Identity
- Proof of Address
- Proof of Age
- Last six months’ Bank Statements
- Last three year’s Tax paid challan and Income Tax Returns.
- Business profile
- Last three years’ Balance Sheet and Profit & Loss Account
These are only the basic documents required by the company. You will need to provide further documents if the company is not satisfied by these.
- What are the property documents that need to be submitted?
If you have decided upon the property that you want, you will need the following basic documents:
- Agreement for sale / construction (as applicable)
- Original title deeds
- Approved layout/ plan
- Parent document originals (as applicable)
- The last 15 years’ Encumbrance Certificate which reflects the history of transactions
- Revenue records such as Chitta, Patta, Adangal, property tax receipts, Town Survey Extracts
These are only the basic documents required by the company. You will need to provide further documents if the company is not satisfied by these in order to establish marketable title.
- Will I need to register the mortgage in the company’s favor?
The registration of mortgage will depend on the laws of the state in which the loan is availed. For example, in Karnataka, in the case of both non housing and housing loans, MOTD has to be duly registered in the concerned SRO. In the states of Andhra Pradesh and Kerala, a Simple Mortgage Deed has to be registered in the concerned SRO for all non-housing loans. for both Housing and non-housing loans in Tamil Nadu, a Memorandum confirming Deposit of Title deeds (MOTD) has to registered in requisite stamp paper in the concerned Sub Registrar’s office (SRO).
- When will disbursement of the loan take place?
The disbursement of the loan takes place once the following conditions are met:
- All the required documents which establish clear and marketable title are submitted to the company
- Loan agreements executed
- It is evident that there has been sufficient progress in construction that is proportionate to the own contribution.
- Any conditions, if applicable, are complied with.
- The disbursement of loan will take place in how many instalments?
The disbursement of loan will take place in full or in suitable instalments. This will depend on the requirement of funds and how construction is progressing (as assessed by the company).
- Is it compulsory for the property to be insured?
Yes, you will have to take insurance for the property against natural hazards. The beneficiary of the insurance policy will be the lending institution.
- I am working in a different city from the city I would like to take the loan from. Is this possible?
Yes, it is possible for you to take a home loan in one city while you work in another city. Since the company has many branches across South India (and a few in the North), it is easy to coordinate your matters. The details of the branches can be found on the website.
- On an average, how much time does sanctioning the loan take?
Processing an application can take between 2 to 10 working days on an average. This includes processing of the application from sanction to disbursement. In this case all the required documents must be in order and the title to the property must be found to be clear and marketable. This must also include the proof that the borrower’s contribution has been utilized/ paid upfront.
- Is it mandatory for me to get property insurance cover?
Yes, it mandatory for customers to get property insurance cover. It is however, one time and low cost.
- What is the premium payable for property insurance cover?
The premium that must be paid depends on RSAIL. Customers must check with the company’s customer relations officer to get the most recent rates.