SBI house loans are the most common means of financing the purchase of a new home. When applying for the greatest house loan attainable based on your wage, there are a few things to keep in mind. Your home loan amount is determined by your earnings as well as any previous debts. Your monthly income determines the amount you are eligible for when applying for an SBI home loan. SBI customers can borrow up to 85 percent of the value of their home. You must first establish your affordability and check that you meet the SBI’s eligibility conditions in order to get the most money out of a loan.
How to Apply for SBI Home Loan?
The SBI home loan application process is an eight step process that is as follows:
Application Form
Each borrower must complete and submit the SBI home loan application form. Name, address, proof of income, employment information, education information, and phone number will all be included. If the applicant is a paid employee, he must also show proof of all of the above, as well as three months’ worth of salary slips, proof of employment, six months’ worth of bank statements, and the most recent Form 16. Self-employed applicants must present a complete set of ITR returns, as well as additional income documentation, for the previous two years.
Processing Fee
The applicant must pay a non-refundable processing charge to SBI after submitting the paperwork. This fee covers the bank’s early efforts in confirming borrower information and analysing the property’s value and ownership title. The remaining processing charge will be paid by the applicant when the loan amount is distributed. It could be a set amount or a percentage of the entire amount of the loan.
Discussion with the Bank
Based on their credit standards, SBI decides whether to approve or reject the home loan application within 5 working days. The applicant may be contacted by SBI Bank for a phone interview. SBI bank representatives may pay a personal visit to the customer’s place of business in the event of self-employed borrowers.
Document Verification
Once the bank has finished speaking with the applicant in person, it will begin assessing his eligibility. Apart from that SBI will check the applicant’s CIBIL score. The applicant’s documents will also be verified by the bank.
Approval Process
SBI bank uses this approach to decide whether or not to approve the loan application. The applicant’s application may be denied if all of his documents are not proper. If the applicant’s paperwork contains an error, SBI may reject the home loan application. In that instance, the applicant would have to reapply.
Property Verification
Now that the loan has been given approval, the bank will inspect the property. The property will be subjected to a legal examination. The purpose of the examination is to ensure that the title is unambiguous and that there are no signs of conflict or disagreement. If the property is under construction, it will also inspect the stage, progress, and quality of the work. If the property is a resale, the bank will look at the age, condition, and upkeep of the structure. It will also check to discover if the home has ever been mortgaged. The applicant must provide all original documentation for the property, including original copies of the title deed, to SBI Bank. These papers will stay mortgaged with the SBI bank till the applicant fully repays the loan.
Sanction Letter
If the loan is approved, the applicant will receive a loan sanction letter from SBI Bank. The permissible loan amount, SBI home loan interest rate and type (fixed or variable) applicable, loan tenure, and all other terms and conditions of the home loan would be included in the letter.
Loan Disbursal
The borrower must send all original paperwork to the SBI bank once the property verification is completed. If all of the documentation is in order, the loan will be disbursed and the borrower will receive the check. If you are buying a home from a builder, the check should be made payable to the builder.
Online SBI Home Loan Application Process
Unlike the traditional SBI home loan application process the online process is a six step process. The online SBI home loan application process is as follows:
- Visit the official SBI website.
- Fill the eligibility form by entering your personal and professional details including property category, income source, etc.
- Then click on the “Get Loan Quote” option by filling in the correct captcha.
- Once you click on that option, you will receive a loan offer by SBI over your phone or email that you have provided.
- After accepting the loan offer, you need to complete the application for SBI home loan.
- Get instant approval on your SBI home loan online application.
SBI enables you to apply for a home loan even if you have a low CIBIL score. Therefore, you can still apply for an SBI home loan if your CIBIL score is poor by adding a co-applicant to your loan application. If your CIBIL score is less than 700, you can add a co-applicant to your house loan application, such as your wife, father, or mother, to increase your eligibility and obtain a higher sanctioned loan amount. Furthermore, the co-CIBIL applicant’s score has an impact on the house loan eligibility. In determining the outcome of your house loan application, both the applicant’s and co-CIBIL applicant’s scores are important. While CIBIL is not the only factor that banks consider when approving home loans, it is the most crucial.
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