Takeover of Home Loan By State Bank of India

TAKEOVER OF HOME LOANS

1. Whether Home Loan can be taken over from the following Institutions?
  • Scheduled Commercial Banks (SCBs);

  • Private and Foreign Banks;

  • Housing Finance Companies (HFCs) registered with National Housing Bank (NHB);

  • Borrowers employers if they are Central/State Govts. or their undertakings or Public Sector Undertakings,

Yes. subject to the following:-
  • Borrower should satisfy the eligibility criteria for availing Home Loan as per the Banks instructions.

  • The borrower should have serviced interest and/or instalment of the existing loan regularly, as per the original terms of sanction.

  • The borrower has valid documents evidencing the title to the house/flat.

2. Whether take over with sanction of Higher Loan Amount & extended Repayment Period is possible?

Yes.Based on the merits of the case and requirements/ eligibility of the borrower, the Bank may sanction an amount higher than the amount taken over from other bank/ financial institution forpurposes of renovation/ extension/ furnishings. Similarly extended repayment period may be sanctioned provided that at all times the criteria regarding maximum permissible finance and security margin under the Bank's scheme are not diluted.

3. What is the procedure for Take Over?
  • The borrower should address a letter to the bank/ financial institution from whom he has availed the loan asking them to deliver, immediately upon receipt of the loan amount, the title deeds and other securities, if any, direct to our lending branch;

  • The borrower should give to the branch a request letter for paying to his existing lending bank / financial institution the outstanding amount of his loan by debit to his loan account;

  • The borrower must give an advice of the actual outstandings (with up-to-date interest) in the loan account from the other bank/ financial institutions;

  • the statement of Account for the entire period of loan or for the last 10/12 months where the loan has run for a longer period;

  • Confirmation letter from the financing Bank that they have created an equitable mortgage over the property.

4. What are the documents required for availing the loan?

Disbursal must be effected only subject to the above information being found satisfactory and completion of formalities as regards

  • Agreement to create Mortgage,

  • Power of Attorney in the favor of the Bank authorizing the Bank to create equitable mortgage on the borrowers behalf.

  • Interim security (Ex: Bank Deposit Receipts, LIC Policies, etc) and the security obtained in the interim period will be released after receipt of the title deeds then the other Bank and creation of a valid equitable mortgage subsequent to verification of the borrower's title to the property.

  • Required loan documents.

5. Whether Pre-payment penalty is funded?

Yes. Total loan quantum, will however, continue to be determined by eligibility criteria based on income, EMI/NMI ratio, LTV ratio etc. applicable to Home Loans scheme.

6. Whether takeover of Home Loan with Top up loan is permitted?

Yes. Home Loan with top up loan can be taken over subject to Maximum LTV of 75 % and fulfillment of other terms and conditions of takeover. Processing fees for such takeover will be flat Rs 1000/- + service tax @ 12.36% irrespectuve if the loan amount during campaign period upto 31.01.2014.

State Bank of India (SBI), with a 200 year history, is the largest commercial bank in India in terms of assets, deposits, profits, branches, customers and employees. The Government of India is the single largest shareholder of this Fortune 500 entity with 61.58% ownership. SBI is ranked 60th in the list of Top 1000 Banks in the world by "The Banker" in July 2012.

The origins of State Bank of India date back to 1806 when the Bank of Calcutta (later called the Bank of Bengal) was established. In 1921, the Bank of Bengal and two other banks (Bank of Madras and Bank of Bombay) were amalgamated to form the Imperial Bank of India. In 1955, the Reserve Bank of India acquired the controlling interests of the Imperial Bank of India and SBI was created by an act of Parliament to succeed the Imperial Bank of India.

The SBI group consists of SBI and five associate banks. The group has an extensive network, with over 20000 plus branches in India and another 173 offices in 34 countries across the world. As of 31st March 2012, the group had assets worth USD 359 billion, deposits of USD 278 billion and capital & reserves in excess of USD 20.88 billion. The group commands over 22% share of the domestic Indian banking market.

SBI's non- banking subsidiaries/joint ventures are market leaders in their respective areas and provide wide ranging services, which include life insurance, merchant banking, mutual funds, credit cards, factoring services, security trading and primary dealership, making the SBI Group a truly large financial supermarket and India's financial icon. SBI has arrangements with over 1500 various international / local banks to exchange financial messages through SWIFT in all business centres of the world to facilitate trade related banking business, reinforced by dedicated and highly skilled teams of professionals.

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