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State Bank of India (SBI) is the largest banking institution in India. The bank operates over 14,000 branches in the country. SBI provides a wide range of banking and financial products that cater to the needs of customers from all walks of life. SBI home loans provide fuel to the Indian dream of owning a house and help millions of people in the country to live in the house of their dreams. The different types of home loan schemes offered by the State Bank of India are: SBI Maxgain, SBI Yuva Home Loan, NRI Home Loans, SBI Realty, SBI PAL, SBI Tribal Plus, SBI Sahyog Niwa and SBI Gram Niwas.
SBI Gram Niwas home loan scheme empowers people in rural and semi urban areas of the country to become home owners. It comes with many borrower-centric features like flexible tenure, minimum documentation and low interest rates that make it very popular.
The features and benefits of State Bank of India Gram Niwas Home Loan Scheme are as follows:
All semi-urban and rural areas that have a population of maximum 50,000 people (according to 2001 census) are covered by this scheme.
Under the Gram Niwas scheme, loans are sanctioned for the purpose of helping borrowers in renovating, repairing, constructing and purchasing houses in rural or semi-urban areas.
The scheme also covers the purchase of plots in order to construct a shed or a house and not just the purchase of already constructed houses.
The maximum loan amount offered under the SBI Gram Niwas Home Loan Scheme is Rs 5 lakhs.
The loans under this scheme come with a repayment period of maximum 15 years.
There are no processing fees for home loans availed under this scheme meant for people in rural and semi-urban areas. Also, there is no minimum loan amount and eligible people can borrow amounts based on their needs.
The interest rate for SBI Gram Niwas Home Loans is the same as for other general housing finance schemes – that is, 20 to 25 bps more than the MCLR rate. Processing fees is waived under this scheme.
SBI’s Marginal Cost of Funds-Based Lending Rate (MCLR) as on April 1, 2016, is 9.2%. The bank will consider the 1-year MCLR rate as its benchmark for home loans, and the interest rate will be reset every year.
The spread above MCLR for Gram Niwas home loans are as follows:
|For women||20 basis points more than the MCLR i.e. 9.4% p.a.|
|For others||25 basis points more than the MCLR i.e. 9.45% p.a.|
The processing fee is waived for home loans offered under this scheme.
You will have 5 years to repay the loan as it should be repaid by the time you are 70 years of age.
Yes, women get a concession of 5 bps on the interest rate i.e. they are charged an interest rate of 9.85% p.a. (the base rate).
You can download the form from the website of the bank.
Yes, a photocopy of your PAN card can be provided as an identity proof.
In conclusion, SBI Gram Niwas scheme offers people in rural and semi-urban areas with the ideal opportunity to become home owners.