Those planning to buy a new abode on a home loan have a reason to cheer, particularly when they have not procured their loan as yet.
The State Bank of India (SBI) is currently running a four-month campaign that kicked off on Sept 1 to offer home loans at concessional interest rates.
The new rates would range between 8.6 to 9.65 percent against the earlier rates of 9.15 to 9.65 percent. Higher the credit score of a customer, lower is the interest rate offered.
The concession that the bank is currently offering under this campaign is up to 65 basis points. This highest concession of 65 bps is offered to the customers whose credit score ranges between 700 to 749, 151 to 200 and those with no score.
Those with the highest credit score i.e., 750 to 800 are entitled to an extra 0.55 percent concession.
However, the customers with credit score between 550 to 699 will be given loans at the old rates only, which means they will not be entitled to any concession of rates whatsoever.
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These rates are inclusive of interest concessions available to women borrowers and concessions available at product level whereas a premium of 10 basis points will continue for loans up to 30 lakhs when loan to value is more than 80 percent but less than 90 percent.
Top-up loans: Those applying for top-up loans will also be given a concession of up to 45 basis points. This means these rates will now start from 9.10 percent against 9.55 percent earlier.
The SBI home loans are meant for a resident Indian in the age group of 18 to 70. The loan tenure can be up to 30 years. The largest lender boasts of offering loans for no prepayment penalty and interest charges on daily reducing balance.
Documents that are required:
A. Key docs: To be able to apply for a home loan, a customer needs to submit these documents: employer identity card, application form, proof of identity and proof of residence.
B. Property papers: One also has to send the property papers: permission for construction, registered agreement for sale, occupancy certificate, approved plan copy and payment receipts or bank account statement showing all the payments made to builder/seller.
C. Account statement: Besides, one has to submit the account statement including last six months from all banks held by the applicant and if there is any previous loan running from any other bank then loan account statement for last one year.
D. Income proof: These include business proof, IT returns for the last three years, balance sheet and P&L account for the last 3 years, business licence details, TDS certificate and certificate of qualification (CAs/doctors/ other professionals).