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  • SBI Home Loan Transfer

    In the event you are having trouble with your current home loan lender with regard to interest rate, bad networking, substandard customer service, etc., you always have the option to transfer your housing loan to another bank. In most cases, home loans are transferred to other banks as the existing lender is providing high rates of interest.

    State Bank of India is one of the most prominent banks in the country providing home loans at very economical rates. SBI will takeover your loan from any of the institutions mentioned below.

    • HFCs (Housing Finance Companies)
    • Foreign and private banks
    • Scheduled commercial banks
    • Borrower’s employees considering they are PSUs or Central or State Government institutions
    SBI Home Loan Balance Transfer Interest Rates
    Category Home Loan Home Loan As Overdraft
    Upto Rs.75 lakh Above Rs.75 lakh Upto Rs.75 lakh Above Rs.75 lakh
    Women 8.60% p.a. 8.65% p.a. 8.75% p.a. 8.95% p.a.
    Others 8.65% p.a. 8.70%p.a. 8.80% p.a. 9.00% p.a.

    Eligibility for SBI Home Loan Transfer:

    Your eligibility to transfer your loan to SBI depends on a variety of factors.

    • You need a good credit score.
    • You should have duly paid all instalments and interest on the existing loan.
    • You need to satisfy the eligibility criteria for availing a Home Loan as per the bank’s instructions.
    • Salaried and self-employed individuals can apply.

    SBI Home Loan Balance Transfer Features And Benefits

    • Good customer service
    • Exclusive benefits from SBI
    • Low rates of interest
    • Low processing fee
    • Daily reducing balance method is used while charging interest on the loan
    • No hidden costs and administrative charges
    • No prepayment or preclosure charges will be levied is case of early prepayment of the loan
    • Provides an extensive network nationwide. SBI has over 15,969 branches across the country, enabling you to visit any of these branches in order to make loan payments
    • Discount of interest for women
    • Home loan is available as overdraft

    Documents Required for SBI Home Loans Transfer:

    You will need two sets of documents. One set is specifically for the loan transfer, and the second set are regular documents you need to avail of a loan and fulfil the criteria set by the bank.

    For Loan Transfer You Will Require:

    • Filled transfer application form.
    • Agreement to create mortgage.
    • Power of Attorney written in favour of the bank authorizing the bank to create equitable mortgage on the borrower’s behalf.
    • Valid documents of the title to the house/flat.
    • Bank statement of your current home loan account of last 6 months to 1 year.
    • Foreclosure letter from current bank.

    The Other Regular Documents Required Are:

    • Passport-size photographs.
    • Identification proof.
    • Address proof.
    • Last 3 months salary slips or 3 years IT returns.
    • Bank statement of your salary account for the last 6 months.

    SBI Home Loan Balance Transfer Fees

    Processing Fee
    • 0.35% of the loan amount
    • Minimum of Rs.2,000
    • Maximum of Rs.10,000
    Pre Sanction
    • Advocates fee for property search, investigation, etc.
    • Valuation report fee
    Post Sanction
    • Stamp duty for the agreement and loan mortgage
    • Property insurance premium
    • Service tax and registration fee

    Process of SBI Home Loan Transfer:

    If you have decided to Transfer Your Home Loan, you will need to follow the process as given below.

    Step: 1- Submit a request to your current bank (Bank A) for loan transfer. Address a letter to your bank and request them to transfer the title deeds and other securities to SBI immediately upon receipt of the loan amount.

    Step: 2- Bank A will review it and issue a No Objection Certificate (NOC)

    Step: 3- Submit the NOC to SBI and request them to transfer your loan and pay off your outstanding amount to Bank A by debiting your loan account.

    Step: 4- SBI will validate the NOC, sanction your loan and pay off your dues to bank A.

    Step: 5- A confirmation letter is required from Bank A stating they have created an equitable mortgage over the property.

    Step: 6- Bank A will close your loan account and cancel all cheques or standing instructions related to your loan.

    Step: 7- You continue paying off your loan to SBI at lowered rates of interest.

    Faqs About For SBI House Loan Balance Transfer:

    1. How do I know if I will benefit from a home loan transfer?

      It would be wise to do a cost analysis and see if switching over would save money. If the change in rate of interest is at least 1%, the transfer will be beneficial. Even though you may be free of processing fees, factor in other costs that come with transfer of loans before you make this decision. You can do a calculation of home loan transfers online.

    2. What costs are incurred during a home loan transfer?

      When you transfer a loan, the whole process begins again for the new bank, so you might have to consider processing fees, valuation charges, inspection fee, lawyer’s fee, stamp duty, etc.

    3. I have 1 year left on my home loan, is it wise to switch so late in the loan tenure?

      If your loan tenure remaining is very less, it wouldn’t be advisable to switch your loans as your interest component in your EMI is very less. To take full advantage of a transfer, it is best to switch earlier on in the tenure.

    4. My current bank is charging a prepayment penalty. Will SBI cover this cost?

      Yes. But the total quantum of loan will be determined by eligibility criteria applicable to Home Loans scheme which is based on income, EMI/NMI ratio, LTV ratio, etc.

    5. Can I avail of a higher loan amount from SBI when I transfer my loan?

      Yes, SBI sanctions loans higher than the amount taken over for the purpose of renovation, extension, or furnishings. This is subject to the merits of the case and requirements and eligibility of the borrower.

    6. Can I extend my repayment period when I transfer my loan to SBI?

      Yes, your repayment period can be extended provided that the criteria regarding maximum permissible finance and security margin under the Bank's scheme are not diluted at any point of time.

    7. What is Power of Attorney? Why does SBI need it?

      Power of Attorney is a written legal authorization for another person to act on your behalf. It grants the person rights to handle your affairs with relation to the specified situation. SBI requires a simple power of attorney from you to give it the power to execute all required documents and transfer the title deed with minimum inconvenience to you. You are not required to sign a durable power of attorney which hands over rights in the event that you are incapacitated.

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    SBI Home Loan Balance Transfer Reviews

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