SBI home loan balance transfer scheme offers attractive interest rates starting from 8.20%, flexible tenures and low processing fees. You can save money on interest payment, pay off your loan faster and avail other benefits when you transfer your home loan to SBI
You can transfer your home loan to SBI from:
|Home Loan Interest Rate Starting From||8.20%||8.35%|
|Processing Fees||0.35% of the loan plus GST (minimum: Rs. 2000; maximum: Rs. 10,000) *|
|*Additional out-of-pocket expenses include those for obtaining Title Investigation Report, Valuation Report, CERSAI registration.|
|Pre-sanction||Legal fees for property search and Title Investigation Report. Valuer's fee for valuation report.|
|Post-sanction||Stamp duty applicable on loan agreement and mortgage. Property insurance premium. CERSAI registration fee of Rs. 50 + GST up to Rs. 5 lakh limit; and Rs. 100 + GST for limits above Rs. 5 Lakh.|
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.
The following documents are required to transfer your existing home loan to SBI.
Bank Account Statement And Income Proof
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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