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SBI Home Loan Process Explained in Steps

Posted: February 2, 2011 in Home Loan Process Tags: loan, sbi, sbi home loan68

Steps ReferenceOutput

DocumentCost

1.Collecting theProperty relatedDocuments:Go to thebuilder and get all theproperty related legaldocumentsI have got Legal

opinion and Share ofagreement and SanctionedSite plan from my builder.

NA

BookingReceipt alongwith the copyof the cheque.

Depends 0

2.Legal Opinion: Go to anAdvocate who is in the SBIPanel with the documentsin step 1 to get it verified.For the advocate to givethe final legal opinion heneeds to see the SalesAgreement & ConstructionAgreement and he needs aphotostat copy ofit.Normally if its a buildershare following documentsneeds to be collected from

Adinath Narde &revathyAssocaiatesStMarks Roadbangalore (Near

Legal opinion 1500

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the builder :1.Encumbrance certificate tillcurrent date (from some 35years advocate may ask)2.Tax Paid receipt tilldateLawyer is going tomake you run for multipledocuments, so themaximum delay isexpected at this step, oncethis step is done half part isdone

to St.Marks Hoteland Bishop cottongirls school)

3. PropertyValuation:Once the Legalvaluation is done go to aproperty Valuator who isin the SBI Panel with thesales agreement.He willvaluate the property andwill give a letter.

NAValuatorstatement

1500

4. E-stamping: SBImandatess the Salesagreement andConstruction agreement tobe estamped/Franked. Regarding whats the valueto which e-stamp ask theconcerned bank.Normallyfor a ongoing constructionflat, there will be 2Agreements a)salesAgreement and b)Construction AgreementInmy case, the bank askedme to e-stamp the Salesagreement for 1 % of thevalue shown there or for20,000 which ever isminimum and they askedme to frank theConstruction agreementfor 200 Ruppees.E-stamping and franking areactually the same, e-stamping is the newtechnology where asfranking is the old onewhere we stamp it,

Domlur Sub-registrar office(can do both e-stamping andfranking)

e-stamp andfranking onthe salesagreement

14,911+200

Remarks: e-stamping modeof payment isviacashFranking ifabove 1000need to take aDD in thename of thesub-registrar,locality



Franking can be done onlyat register office where ase-stamping can be done atpost offices, Syndicatebanks, Selected registraroffices etc

Note: Make sure you, yourwife and builder sign onthe e-stamp which youpurchase.

5. Submitting theApplication: Once we gotthe Valuator statement andLegal opinion, now go tothe SBI with the filled inapplication forms alongwith the requireddocuments for loanapplication. Also attach thelegal opinion and theValuator statement.Note:Its always good to go for ainteriors loan (max up to 3lkhs) along with the hoamloan which will save youanother 7000 rs for theprocessing fee. For theinteriors you need to get aquote from an interiordesigner and get it valuatorsanctioned. For me I wentwith valuator only

SBI Special HomeLoan branch,JayanagarInteriorsvaluation: C SVyasaraja

ApplicationformValuatorStatement

6. Waiting period: Nowits time for the waitingperiod. The waiting periodmay vary person to person.Normally in the specialhome loan branch, it canbe as fast as 3 days. For meunfortunately it took 23days as there was an auditgoing on in the bank.periodically call them tomake the process muchfaster. Also make sure theyinspect the property if you

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are in a hurry to get theloan coz unless and untilthey inspect it, they wontdisburse the money.

7. Documentation:Oncethe loan is sanctioned,Bank people will give youa call and now we need toplan for thedocumentationFor thedocumentation we need toget the followingdocuments1. 2*400 rupeesworth e-stamp1st party:Loan applicant

2nd party: SBI

purpose: Housing LoanAgreement

2. Rs.200 worth e-stamp

1st party: Loan applicant

2nd party: SBI


3. Rupees 200 worth e-stamp

1st party: Guarantor

2nd party: SBI


4. All the originaldocuments which you havesubmitted while applyingfor the loan.

5. 17 Cheques in favour ofSBI. Out of this 5 are forsecurit and the 12 are forEMI. In my case 3 monthsI have taken Moratarium

SBI Special HomeLoan branch,Jayanagar

Loan SanctionLetter

1260

Remarks: e-stamp mode of

payment isCash



(Moratarium is the periodfor which only the interestwill be taken from theborrower, which iscommonly termed as pre-EMI)

Loan applicant along withguarantor needs to bepresent at the bank for thedocumentation. builder isnormally not required, if itsa land lord hsare then theyhave to come

8. Disbursement:Once weget the Loan Sanctionletter go to the builder andget the followingdocuments1. NOC fromthe builder stating hehasn’t mortgaged thisproperty to any otherbank2. Tripartiteagreement (e-stamped/Franked for 200rs) [This is required only ifits a ongoingconstruction.3. DemandNote from the builder[howmuch money he needsnow)

Note: Please make surewhatever demand notethey makes is matchingwith the schedule ofpayment. In my case Ihave to twice change thedemand Note.

SBI Special HomeLoan branch,Jayanagar

DD in favourof builder

DemadedMoney

9. From now on for furtherpayments we can just senda mail to the manager toplease disburse the amountXXX and then ask thebulder to send a boy to theSBI branch with the



original demand note andthey can collect the DDfrom the bank directly. Wedont have to go to bankanymore.

10. Now its time forregistration and the finalpayment to be made to thebuilder. here there aresome things to be careful.a)Check with the builder twodays before registration,how much is the currentregistration Stamp dutyand the same needs to beconveyed to SBI. Instead ofpaying the registrationamount from our pocket,its better to be taken fromthe Loan account(so thesame needs to be paid tothe builder from our side),the reason for the above isthat it will save us somemoney interms of DDcharges as SBI themselvesare taking the DD in thename of registrar, we donthave to pay any DD surcharges.b) If you are doinga, that is getting the DDfrom SBI loan amount,then you need to send toSBI the receipt for the sameamount being paid to thebuilder (if you havealready paid this ignoreit)c) Remind the SBImanager regarding theregistration and also askthem keep the DD readybefore 1 day so that we cantake a photostat of thesame and give it builder.This is must as the builder

1. DD forRegistartionStamp duty inthe name ofSub-registrar2.

DD forMortgageStamp duty inthe name ofSub-registrar:Rs. 43023. DDfor Stampdutyin the name ofSub-registrat:Rs. 43024. DDfor Buildinginsurance inthe name ofSub-registrar:Rs.18300

5. Photostat ofthe DD for theremainingamount to begiven tobuilder in thename ofbuilder (Theoriginal will begiven to thebuilder only atthe time ofregistration bythe bankpeople)

6. SBI Postalmail formwhich needs tobe send afterregistrationsaying we



needs the DD# and otherdetails in the sale deed

havesubmitted allthe registereddocuments toSBI.

11.Finally its party timeand the Registration Dayhas come. This is the easiestthing, as the builders willarrange everything and wedont have to do anythingapart from being present atthe registrar office fornearly 4 hrs. Normally, atthe end of the registration,you can give a call to theSBI officer and they willpersonally come and givethe DD to the builder, butin my case since they weretotally busy, they askedme to come over to thebranch and collect the DD

1. RegisteredSale Deed2.RegisteredMortgageDeed [Onlymandated bySBI, HDFCand otherbanks dontmandatethis]3.EncumbranceCertificateafter Sale deedregistration [Once sale deedis registered,the flat will bein yourname]4.EncumbranceCertificateafter Mortgagedeedregistration [After this theflat will be inthe name ofSBI and yourname] once weclose the loan,we need toregister it backto our name

Note:Everything allthe originalsneed to besubmitted tothe SBIbranch/officer



and give to the builder. if they come tothe registraroffice afterregistration[Make sureyou takeenoughphotocopiesbefore yousubmit thesame to SBI].

5. The verynext day youneed to send aPostal mail toSBI saying youhavesubmitted allthe originals toSBI on so andso date.

6.

THE END!!!!!!!!!

Comments

1. Sandeep says:December 27, 2011 at 2:24 PMHi Jerin,Thanks for the post, really helpful.I got a quick query on the above…why did you have to take so much of trouble runningaround, where as HDF or citi would have made is much easier and convinient.Any reasons??I am right now in a dilemma to which one to go with for home loan.

Sandeep

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jerinjoseph says:February 6, 2012 at 7:43 PMThanks Sandeep. Sorry for the late reply. I saw the comment now only. All SBIs u donthave to run behind. Whatever I explained is apllicable only for Special Home loanfinancing branch which doesn’t have any agents(Pro’s and cons of SBI special branch isexplained in another blog post). The reasons I went for SBI when compared to HDFC/Citibank are listed below

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http://jerinjoseph.wordpress.com/2011/02/02/sbi-home-loan-process-explained-in-steps/?replytocom=14#respond





1. SBI being a nationalized bank there are no hidden charges/policies unlike private banks2. As far as I know there are no other banks which have a plan similar to SBI’s max gainplan. Max gain plan is a Overdraft loan account and you can make part payments to theloan whenever you want and also you can withdraw whatever u paid in excess at anytimethrough online transfer.For eg: lets say if you have a homeloan of 5 lakhs and lets say you got some additionalcash in bank say 1 lakh. This 1 lakh can be paid to the home loan there by reducing theprincipal amount to 4 lakhs and from then on the interest will be calculated for 4 lakhs.Now lets say after 2 months u got a family emergency and u are in need of money. Thenwith maxgain plan u can withdraw the 1 lakh which u paid in excess during that time.

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amey says:November 1, 2012 at 9:20 PMThanks for such a huge & informative portal but, I have an query as Just initiated byHL from SBI & process haven’t yet started but, wanted to know as what is the Expiryof SBI sanction letter. is it 2 or 6 mths.

2. Bipin says:January 10, 2012 at 10:38 PMthanks for the such detail explanation !

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3. siva says:January 25, 2012 at 9:54 PMExcellent….this is very useful information….Thanks for sharing this.

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4. sunil.k says:February 6, 2012 at 6:09 PMthanks for u r suggestions…… i m in processing stage valutor will come soon……thnx

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5. Chetan D says:February 8, 2012 at 6:15 PMThanks for sharing the detailed information. I had one query (might be simple one for you):

Does the Stamp Duty and Registration DD needs to be taken from same bank where I amplanning to apply the loan for?

Suppose I am taking Home loan from SBI and planning to get the DD from Bank of India.Does SBI will create problem while sanctioning the loan? is there any policy around this?

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jerinjoseph says:February 8, 2012 at 9:35 PMHi Chetan,As far as I know here is no mandate that Stamp duty and Registration DD needs to betaken from the bank from where we have got the loan. But taking the DD from the samebank(I know only about SBI) is always a better option as SBI will not charge for taking theDD (provided yor home loan is also from SBI.Most of the banks charge a nominal amountfor taking DD). That money you can save.

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Chetan says:April 21, 2012 at 2:22 PMThanks Jerin for your reply. I paid the Stamp Duty and Registration charges via Bankof India DD. My home loan sanction appointment has happened on Friday. I was toldto pay following charges :

Stamp Duty for Loan and Mortgage in cash 7500Processing Fee : 6500Property insurance :22000

I asked the SBI manager for receipt of this 7500 (cash) which was ultimately paid tostamp vendor. Actual stamp cost was around 6500 to 6800 since was signing so maydocuments, i was not able to count that. The SBI manager told me he cannot give methe receipt as it is directly paid to stamp vendor. So i had few questions:

Is this stamp charges have to be really paid by us?

Are they not part of processing fee?

What would be the stamp (total value) required for a loan of 30,00,000 (30 lacsamount)?

I fear that the amount has not got into the pocket of SBI manager Thanks inadvance

Chetan

jerinjoseph says:April 21, 2012 at 3:17 PMHi Chetan,Stamp duty thing is for sure not part of the processing fees. Since I paid from the SBIhome loan account only, I didnt face any issue. As SBI just gives the DD for theamount which you ask. I just gave it to the registrar office and got a receipt. not surehow the stamp duty prices are separately calculated. (I can be wrong here as I am notan expert on this and I dont most of the calculations now as I have done it one yearback)









Chetan says:April 23, 2012 at 2:28 AMThanks Jerien for the below reply. Just to update you the stamp duty for mortgage isdifferent. This has to be paid in cash. not sure though how the stamp value for this isdecided/calculated . No calculation logic for this was available on Internet. I enquiredwith my friend who has taken the housing loan, he was also told to pay some stampamount in cash for this loan and mortgage. I also heard that at some places SBI itselfmanages this.. Don’t know what’s the fund in taking the cash from home loanborrower directky without giving the receipt…

jerinjoseph says:April 23, 2012 at 7:23 AMHi Chetan,Thanks for the clarification. But I do remember in my case I have paid everything asDD to registrar office [Please refer my Step 10, Output documents]. I havent paidsingle amount to SBI apart from the processing fee which I paid as cheque.

6. Vivian Abraham Kavunkal says:February 9, 2012 at 1:11 AMCan we demand a DD in buyers name ?! I mean so that the seller could get the money in cash.

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jerinjoseph says:February 9, 2012 at 7:58 AMHi Vivian,I am not sure about this. But I dont think bank will allow it. But when I took the homeloan, I also took a interiors loan along with it and for interior loan normally bank willdisburse the DD in the name of either the interior contractor or to you if you provide thebills claiming that you have paid the amount to the interior designer. Similary you cancheck with your builder whether they can give you a receipt saying they got cash fromyou for the amount for which you are planning to get DD and then later ask the bank togive the DD in your favour. But I am not sure on this. please check with the bank forconfirmation.

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7. Himanshu says:February 11, 2012 at 11:37 AMHi

A very informative blog which ideally shud have been in SBI’s site..

I have one question on step 9. How we do request for subsequent payments from bank ? Dowe e-mail the self attested scanned copy of demand letter and request letter to branch ? Withinhow much time do they prepare the cheque ? Do we need to go to the branch and get




http://www.facebook.com/abrahamvivian









something done in person ?

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jerinjoseph says:February 11, 2012 at 2:19 PMHi Himanshu,Thanks for the comments.As you mentioned for the subsequent payements you can justsend an email to the sbi manager who is assigned to you from the special branch alongwith the scanned copy as attachment. I think atleast one day before you need to notifythem via mail/phone so that they can prepare the DD

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Himanshu says:April 19, 2012 at 11:33 PMHi Jerin

Thanks for replying on that but is the process still applicable ? I emailed my branch inGurgaon, like always they did not respond. When I called them up they said they SBIhas stopped entertaini g requests over email which I seriously doubt is the case. anyrecent experience of yours ?

jerinjoseph says:April 19, 2012 at 11:39 PMHi Himanshu,My experiences are with the Special Home loan branch of SBI, which as of myknowledge are only two in India, one in Chennai and one in bangalore. I am not sureabout the practices followed by normal branches as it is totally different. For specialhome loan branch, the chief manager of that branch itself can sanction a loan, whichmakes the sanctioning faster where as for normal branches, it has to go to the Headbranch(RACPC i guess) to get it sanctioned.

8. Abhishek Anand says:February 21, 2012 at 8:49 PMGood to see such a compilation. makes it easy from here on. Just a quick question. What is atri partie agreement specially for SBI?

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jerinjoseph says:February 22, 2012 at 8:16 AMHi Abhishesk,I am not sure how correct i am on tripartite. As per my understanding Its basically aagreement between the three parties involved (Buyer which is us, Vendor which is builderand the Financier which is SBI/any other bank). This is required only in the case of aongoing construction. But normally all the banks/builders have a standard template for














this. In my case I checked with the builder and they had a a template and they gave it tome and it worked.Please refer the following link for a sample tripartite agreement template from united bankof indiahttp://www.unitedbankofindia.com/annexiforms.htm

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9. Vinu says:March 8, 2012 at 1:57 PMExcellent brefing..Thanks

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10. Prasad says:April 11, 2012 at 4:52 PMHi Jerin,

Thanks for giving lot of information. I am also palnning to take house loan from SBI. I metcustomer relationship officer, sbi , indiranagar. I submited set of legal documents and slaeagreement. He told he would send those to his advocate. once advocate gives clearance, then ihave to submit application with required documents.is it step5(submiting documents) whatyou mentioned.I also asked him whether i have to roam for loan process.He told, once loansanctioned once i have to goto head office and submit the documents for documentation.My builder told me to go forAXIS bankas SBI loan process is slow, but i am going for SBI as it is nationalized bank. Am i taking risk?Usually how long it will take?

My builder already collected 0.1% for franked notary charges and he also told incase of SBI itis 1%.But SBI manager told it is 0.1% only.I want to know what are the current charges?

SBI loan required guarantor, I thought to go for insurance to avoid guarantor and discussedwith SBI manager. Do you know which is good insurance, if it is lower premium it will begood for me.Here objective of taking insurance is to avoid gurantor not to get benifit frominsurance. Can you suggest good insurance for house loan? In loan application theymantioned SBI Life Rinn Raksha Policy, should i go for only that policy or can i selectdifferent policy?

Have faced any problem with SBI for releasing money?

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jerinjoseph says:April 12, 2012 at 10:16 AMHi Prasad,Thanks for your comments. Regarding your Questions1. Is it step5(submiting documents) what you mentioned?Jerin: In my case I have got the loan from SBI special home loan branch Jayanagar. There

http://www.unitedbankofindia.com/annexiforms.htm










you may have to do most of the work including getting the legal opinion and valuatorstatement etc, bank will just do the sanction, once everything is there and verified. So inthis branch usually the loan gets sanctioned much faster as we are doing most of the work.Downside is that we have to do most of the work. The pros and cons of special home loanbranch is posted in http://jerinjoseph.wordpress.com/2011/02/02/pros-and-cons-of-special-home-loan-branch/

2. Am i taking risk? Usually how long it will take?Jerin: I also went for SBI because of the same reasons(Nationalized bank]. One more thingis that with SBI there wont be any hidden costs/other charges unlike HDFC/ICICI and alsotheir legal verification are much stricter than any other banks which gives us a goodconfidence about the property. I am not sure of other banks. As I mentioned in thequestion 1, special hoem loan branch normally takes max 8 days to get it approved. But inmy case it took approximately 3 weeks as there was some audit going on in the branch.

3.My builder already collected 0.1% for franked notary charges and he also told incase ofSBI it is 1%.But SBI manager told it is 0.1% only.I want to know what are the currentcharges?Jerin: In my case I paid 1% during Jan 2011 timeframe[refer step4]. I am not sure of thecurrent charges. But when i took loan also I heard different banks asking differentpercentages. Also one more thing to note is what ever amount this 1% which we pay canbe reclaimed if we do the final registration at the actual price than at the guidance value.[But there are some conditions on that and I am not sure about all those things, heard theestamping/franking and final registration has to be done on the same registrar office]

4. Regarding Guarantor?Jerin: in my case I went with the guarnaor and it was the easiest for me as already mybrother inlaw had taken a home loan from the same branch. So I just need to quote theirloan account number to the bank. I am totally ignorant/unaware of the insurance.

5.Have faced any problem with SBI for releasing money?Jerin: I never had any issue with that.

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Prasad says:April 13, 2012 at 11:05 AMHi Jerin,Thanks for giving quick reply.

11. Pavan says:April 21, 2012 at 11:36 AMThanks for the fantastic explaination.I have one query:Shall I go for rinn rakshak insurance policy or any other term insurance? I came to konwtoday that in SBI rinn rakshak, sum assured decreases whn principle of loan amountdecreases during tenure, for eg: say i go for home loan of 30 lakh and if i opt for rinn rakshakplan, sum assured i 30 lackh…say down the line, after 5 years my principle of loan amound

http://jerinjoseph.wordpress.com/2011/02/02/pros-and-cons-of-special-home-loan-branch/






decreases to 20 lakh ( either by doing pre payment or with EMI) automatically sum assuredalso decreses to 20 lack…which i believe is crap….where in if you opt for any term insureanceplan, Sum assured remains same for entire tenure…

Kindly correct me if my understanding is correct and should I go for Term insurance plan byrejecting SBI rinn Rakshak.

Regards,Pavan

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jerinjoseph says:April 21, 2012 at 3:08 PMHi Pavan,Thanks. Sorry I wont be able to help as I am totally ignorant about the Insurance.

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12. Manav says:April 24, 2012 at 9:41 AMIs SBI SPB on St Marks Road is a special home loan bank branch as well? It is called asSpecialized Personalized Bank though. Also are you aware about the documents to besubmitted when a resale flat to be purchased which is still not registered? Meaning, the builderhas sold the flat to person X and person X now wants to sell the flat to person B which is stillnot registered.Thanks for your help.

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jerinjoseph says:April 24, 2012 at 10:43 AMAs far as I know there is only one SBI special home loan branch in Bangalore, which is inJayanagar 4 th Block near the BMTC Bus Depot. For your second question, I think there isno change in the list of documents as this is some what exactly the same case where youare buying the flat from a land owner share instead from a builder share. The documentswill remain same I guess. I am not 100% sure. You can walk in to the SBI special homeloan branch on a sunday [They are open on sundays] and they will guide you properly.

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13. Prasad says:April 25, 2012 at 10:04 AMHi Jerin,I have few doubts

Property Valuation:Is there any chance property valuator may estimate property value lesser than buying price?













Documents for applying House loan:I have all the documents with me except following documents

1.Plot allotment certificate from builder ( This builder mentioned in sale agreement, is it ok or ihave to take seperate document for this)2.Cost breakup (Builedr mentioned payment schedule in sale agreement, is it enough?)3. NOC from Builder (When i have to submit this doc while applying(step 5) ordocumentation(step 7)?)

NOC from the builder SBI mentioned it should be in the format of SBI bank.I saw the format,all these details are already included in sale agreement, do i need seperate doc for this? Canyou please help?

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jerinjoseph says:April 25, 2012 at 10:31 AMHi Prasad,Is there any chance property valuator may estimate property value lesser than buyingprice?Jerin: I also had the same fear. but normally it will never happen. Also the valuator’s pricein my case was around 6 lakhs more than what the builder has quoted. So dont worryabout it.I have all the documents with me except following documents 1.Plot allotment certificatefrom builder ( This builder mentioned in sale agreement, is it ok or i have to take seperatedocument for this)Jerin: I am not sure on this. Please check with the bank.

2.Cost breakup (Builedr mentioned payment schedule in sale agreement, is it enough?)Jerin: yes that is more than enough. I also had it in the agreement.3. NOC from Builder (When i have to submit this doc while applying(step 5) ordocumentation(step 7)?) NOC from the builder SBI mentioned it should be in the formatof SBI bank.I saw the format, all these details are already included in sale agreement, do ineed seperate doc for this?Jerin: In my blog its in Step8. Also i dont remember any particular format for NOC. Onlyfor tripartite agreement they wanted in some format and one of the sample format ismentioned in one of the comments. please search for tripartite in my blog. Also NOC isseperate and Sale agreement is seperate, So u need to have NOC.

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14. SANJEEV says:April 26, 2012 at 3:05 PMI HAVE A PLOT FOR CONSTRUCTION I WANT TO TAKE LOAN FROM SBI

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15. manu says:May 1, 2012 at 9:57 AM










thx

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16. mathew says:May 9, 2012 at 1:00 PMHi Jerin,SBI Home Loan branch asked me to take a SBI Life cover. Is it mandatory. If I have a jointloan with my spouse, then in case of an eventuality happening to myself, will the whole homeloan burden will be taken off?

Also it would be good if you can mention about how to get reciepts of the amount we paytowards interest and principal.

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jerinjoseph says:June 7, 2012 at 7:58 PMHi mathews,Sorry for the late reply. SBI life cover I also have taken it. But I dont think its mandatory.Infact mine was also a joint loan and I am also think all the burden should be taken off.But I am not 100% confident as I havent done much research on it.Regarding the receipt for payment towards home loan, every year you can request for astatement(free of cost for 1 copy, some additional payment if you request multiple times)and they will either email you a soft copy or prepare a hardcopy which you can collect itfrom the spl home loan branch.

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17. wilson says:May 21, 2012 at 5:00 PMi am planning to buy a land which is having ‘A’ khatha and dc converted. i want to knowwhat are the property documents required for buying the land by sbi

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18. Gaea says:May 31, 2012 at 7:58 PMHi Jerin

I am building a house. I am too new to bank procedures. My latest problem is, my contractoris refusing to buy construction materials first and then collect money from the bank. He wantsme to provide him with the money first. But the bank refuses to release the loan moneywithout the bills. I do not have money to give the contractor!

What is the disbursement process of a home loan? Do I have to submit the bills (forconstruction materials bought) first and then collect the loan amount from the bank? Is thereno other way? Please let me know if you can help me with information.












Gaea

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jerinjoseph says:June 7, 2012 at 7:49 PMGaea, I cant help you here as I have got home loan for an apartment. Please check withthe SBI bank.

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19. jibin babu says:June 7, 2012 at 7:39 PMHi Jerin,

Thanks for the post , it’s really helpful..

I have applied for SBI home loan… I am purchasing the flat directly from the landlord (notbuilder)… He is asking me to register as per the current market value not the actual cost.Whether it’s possible with SBI ? since I have the sale agreement saying the actual cost of theflat.

Thanks,Jibin

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jerinjoseph says:June 7, 2012 at 7:46 PMHi Jibin,I am not sure about the current situation. But atleast 1 year back, when I applied, theyallowed me to register at guidance value.

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Rahul Lodha says:July 13, 2012 at 2:15 PMHi Jibin,

Do you have the Tripartite agreement format which was applicable for you as you havepurchased from landlord? If yes, please e-mail me at [email protected]

Regards,Rahul

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20. Leonard VA says:June 26, 2012 at 10:48 AMHi Jerin,











mailto:[email protected]





We have a property and would like to construct a house…we plan to take a construction loanfrom SBI as we have a SB account there.

Can you help us in letting us know couple of things:How does the disbursment schedule work

Thanks and Regards,Leonard

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jerinjoseph says:June 26, 2012 at 10:52 AMHi Leonard,Please refer Step 8 and 9 for the same..

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21. Sujata says:June 26, 2012 at 12:45 PMhi Jerin,thanks for putting up the info in a fantastic manner! you’ve done a gr8 job

I have one doubt:

The bank usually pays 80-85% of the actual amount. Do we need to pay to the builder the restof the amount before the 1st disbursement is done by the bank ? I mean, is it possible that thebank starts disbursing the loan amount first and we pay from our pocket towards the end, oras and when we can..

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jerinjoseph says:June 26, 2012 at 3:04 PMThanks Sujata.Regarding your query on the payment from SBI. SBI will not give you the disbursementunless we show them that we have paid our portion. This needs to be shown via receipts aswell as the cheque/DD photocopies. In my case I applied for the loan, when the buildingwas 85% complete and SBI mandated that I need pay the 20% of the 85% from my sideand once i produced the receipts for the same, tehy disbursed the remaining amount.

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22. Hemal Salian says:June 27, 2012 at 5:08 PMHi Jerin,A very helpful article.i have a doubt… I am planning to buy a house which is in under construction stage and it willbe ready after 2 years… now in that case if I pay 20% now to book the house… at what stage I













am supposed to do registration? I mean registration is done while flat under construction orafter the flat is ready?

also once registration done.. then i will apply bank for loan… so will bank disburse theamount after flat is ready or in between construction?

While the flat is underconstruction stage… how many part payments are we supposed tomake?

Looking forward for your reply. Thanks in advance for helpHemal

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jerinjoseph says:June 28, 2012 at 12:40 AMHi hemal,To answer your question. I am not 100% confident, but I believe normally registration isdone after the flat is completed, but I have seen many people registering much before theflat completion. I dont think SBI will allow registration before completion of project, atleastthat’s the answer I got when I enquired.Regarding your other question, its not a mandate that you should give your 20% shareinitially only, but giving ur full 20% share initally is a good option as you dont have to payinterest for that.

so will bank disburse the amount after flat is ready or in between construction?Bank will disburse the money anytime once the loan is sanctioned and you show thedemand note. Also please remember while applying the loan you need to get a letter fromthe builder regarding the schedule of payment, like at 40% of completion you need to pay40% of the total amount some thing like that. So Bank will cross check that schedule alongwith whether you have paid the 20% of that and then only will disburse the amount. Formore details look at the reply which I have given to Sujata.

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23. Sahil Bansa says:July 4, 2012 at 9:21 AMThanks really helped me my project…

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24. Aishwarya says:July 6, 2012 at 4:30 PMHi jerin

Your blog is wonderful with a lot of information .Well done. I have a query. We have bookedthe under construction flat for 25.6 lakhs in mysore and intends to take a loan from SBI. Thevalue mentioned in the agreement is 25.6 lakhs ,but the builder says that he would register thesale deed after 6 months as per the guide line value only which comes to only 13 lakhs.Registration will be after 7 months when the flat willl be ready. If the sbi sanction loan for 21










lakhs (loan iam asking)and if the sale deed reflects the lesser amount ie 13 lakhs ,will SBI object at later stage and willi get into problem. please reply at the earliest as Iam very confused as the builder says that it isthe normal procedure to do so . He says the pvt banks does not object and He is not sureabout SBI.

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Guru says:July 19, 2012 at 12:17 PMHi Jerin,

Wonderful post. It was a good experience to understand things in detail before taking ahome loan from SBI. Today I had approached SBI Spl Housing Loan Branch this branchfor a home loan and they were saying that I need to register the property at Market valueand not guide line value. Do you know which manager of SBI had said / allowed you toregister at guideline value so that I can also approach the same person.

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25. joyadab says:July 13, 2012 at 4:46 PMI HAVE A PLOT FOR CONSTRUCTION I WANT TO TAKE LOAN FROM SBI…is this ishttp://goo.gl/tlqro alright or not

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26. Home Loan says:July 16, 2012 at 12:26 PMHi there! I would just like to give a huge thumbs up for the greatinformation you have here on this post. I will be visiting your website formore groovy info soon.

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27. Sudarshan.B says:July 23, 2012 at 1:05 PMHi Jerin,

Can I know which insurance is better for home loan.SBI rinn rakshak or some other?

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28. praba says:August 1, 2012 at 8:49 PMHello,could you please tell me why there would be delay in getting legal opinion from thebuilder.Builder always say he has not received the legal opinion from the SBI lawyer for past 4months.How much time does it take normally?




http://elehomeloan.wordpress.com/


http://goo.gl/tlqro


http://scoremefree.com/








Please reply.Thanks

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29. Deepak says:August 25, 2012 at 4:15 PMWhat is equitable mortgage & Registered Mortgage , let me know the difference & security ofHL

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PRINCE says:August 30, 2012 at 12:43 AMEquitable Mortgage is physically handing over the title deed of your property to bank andexecuting a Memorandum of Deposit in the registrar office which costs you less moneycompared to a Registered Mortgage where u will pay a percentage of Value of theproperty as Registration fees.

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30. Sivakumar says:August 27, 2012 at 5:50 PMHi Jerin,

I have taken loan from SBI and it is now 3 rd year running.I have a doubt when builder collecting the registration charge from me.My flat area was 1000 sq. My flat cost is say 20 lakhs. I have taken a loan for 15 lakhs fromSBI(My own interest and i have taken from SBI – not builder suggested Bank).If i want to do the registration, the builder is asking to pay me the registration charge for fullvalue.Say for flat cost is 20 lakhs, then it is coming around rs.2 lakhs. But those who took the loanfrom other private banks HDFC, ICICI (where these are builder suggested banks when iwanted a bank for home loan) the registration amount are 1 lakhs. As per them they will showonly the bulidng cost is 10 lakhs and doing the registration.Please advice me, what is the benefit if i do registration for full amount / partial amount?If the loan getters from other bankers are not cheating the government by showing the lessvalue?

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31. kumar says:August 29, 2012 at 12:04 AMHi Jerin, very informative post. I really appreciate your efforts for same.I m interested in buying apmt, and little confused over service tax and vat.Builder is showing a calculation of S.T of 12.36% on (25% of Basic+CarPark+Water+Power)and VAT of 4% on Basic+CarPark+Water+Power. Do you know if this is correct or did youpay similar?








http://kunalekawde.wordpress.com/




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32. Mukund Deshmukh says:September 3, 2012 at 10:06 PMGreat Info.. Thanks !! I have read almost all the posts.. Thanks to all.

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33. blore buddy says:September 10, 2012 at 4:25 PMHi. Thanks for this blog entry. You have mentioned in STEP 11 the following. RegisteredMortgage Deed [Only mandated by SBI, HDFC and other banks dont mandate this] what isthis?How much it cost to de register in your name after loan is paid back?

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34. mahendra patwal says:September 21, 2012 at 12:59 AMhello jerin, i went to a property lawyer and understood that i would not be able to get a loansanction from sbi as the property papers do not include succession certificate. so now i amplanning to borrow from other private banks, would be very helpful if you suggest me anappropriate bank. moreover, i have applied for a loan in indiabulls, so what are yourcomments about it.will it be possible for me to transfer my loan to sbi in the future.thanks in advance

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35. Arup Bhanja says:September 24, 2012 at 3:20 PMNice compilation and explained in proper steps!

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36. anand jetha says:September 26, 2012 at 2:39 PMI need to ask that whether sbi can charge dd commission on the demand draft they haveissued for disbursement of loan.

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37. Praveena says:October 4, 2012 at 1:27 AMVery Useful article.I have taken a home loan from SBI in Jun 2012. I have now been asked to do the mortgageregistration immediately. Is this really required? when enquired in the registrar office, i wastold that it would cost 4% of loan amount (stamp duty) + 1% of loan amount (regn fee). No















one in the bank informed me about the registration procedure.I’m at shock, i must say. Tilldate i was happy thinking that SBI is transparent and had no hidden charges. But now, i havestarted thinking if i should transfer my loan to some other bank that does not require thisprocedure.

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38. Praveena says:October 4, 2012 at 1:29 AMVery Useful article.I have taken a home loan from SBI in Jun 2012. I have now been asked to do the mortgageregistration immediately. Is this really required? when enquired in the registrar office, i wastold that it would cost 4% of loan amount (stamp duty) + 1% of loan amount (regn fee). Noone in the bank informed me about the registration procedure.I’m at shock, i must say. Tilldate i was happy thinking that SBI is transparent and had no hidden charges. But now, i havestarted thinking if i should transfer my loan to some other bank that does not require thisprocedure.Please tell me if there is any other work around. I appreciate your help/input.

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Rajeevi Shyam Advocate says:October 13, 2012 at 7:13 PMPraveena I am Rajeevi Shyam Advocate on the panel of State Bank of India and justhappened to glance at this blog by way of Chance and I haven’t read all the comments butas far as stamp duty for registration you may have got it wrong it is point five percent ofthe loan amount as stamp duty and point five stamp duty for registration. Kindly observeit is only point five percent. and if you really go to see for every DTD every applicant paysthe .5% as stamp duty only here the DTD is being registered and every bank is registeringthe DTD. So it is not 4% and 1%. there must be some wrong information that you havereceived and Jerin Joseph you have done a great BLOG about the Loan process details.which I am sure will help many customers. Thanks

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39. Sanjeet says:October 17, 2012 at 1:06 PMReally helpful .Thanks for Sharing!

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40. s1u1b1h1a says:October 17, 2012 at 7:09 PMHi Jerin, Nice blog. It’s very interesting. We have just visited SBI electronics city today for ahome loan. Builder has got approval from SBI Indra nagar branch. What is the use of havingapproved at Indra nagar and I have to submit all papers related to builder to SBI electronicscity. When I ask the builder he says its already approved by SBI and asks me to go to Indiranagar which is too far from my home and work. In what way the approval at one branch ofsame bank help me in the process of getting a quicker sanction? As discussed with an official








http://gravatar.com/s1u1b1h1a




at electronics city he said 20- 30 days from today if all papers are given at first instant. If I goto Special home loan SBI at jayanagar, will the same apply with respect to documentsubmission related to builder?

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41. Manju Pradeep says:October 30, 2012 at 3:34 PMWe have a GDA flat in IndiraPuram, Ghazia bad ( Uttar Pradesh ) & have taken a loan fromDHFL Finance Housing loan , running the loan last 10 months period . We would like totransffer the loan to sbi, so that pls advise Is it possible to transfer SBI.

pLS REPLY as soonest. Thanks, Manju Pradeep.

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