MOST IMPORTANT TERMS AND CONDITIONS SBI – Home Loan

The MITC covers the following Loan Products:

1 General Home Loan-for Purchase/construction/Take over

2 Home Loan Take Over-Balance Transfer
3 SBI Realty-For Plot Purchase
4 COMBO Loan-Plot purchase+Construction
5 SBI Maxgain- Overdraft facility
6 NRI Home Loans
SBI Privilege: Home Loan for employees of State & Central
7
Govt/PSBs/PSUs
8 Shaurya Home Loan- For Defence/Navy/Airforce personnel
9 SBI Flexipay Home Loan-higher eligibility with step up moratorium

10 Shaurya Flexi Home Loan-Flexi Home loan for Govt Employees

Shaurya Flexi Vishishtha- Shaurya Flexi for personnel above 45

11
years of age
12 Home Loan to Non-Salaried (Differential Offerings)
13 Apon Ghar (Assam)-for Employees of Assam State Govt
14 HL for Employees of Kerala Govt
15 SBI Tribal Plus

Purpose for which home loan can be availed: The loan will be
sanctioned for the purpose of Purchase/ Construction/ Extension/
Repairs/ Renovation of new/ used Residential house/ Flat/ Plot of land
and furnishings and interiors (hereinafter referred to as the ‘project’).

Loan to Value Ratio (LTV):

Home Loan Amount LTV Ratio

Up-to Rs. 30 lacs 90%
Above Rs. 30 lacs and 80%
upto Rs. 75 lacs
Above Rs. 75 lacs 75%
Rate of Interest:

Floating Rate of Interest: -

Interest on the loan will be charged at a fixed spread with EBLR linked RBI
REPO rate on a daily reducing balance basis at monthly rests. Interest
rate will be reset with the change in benchmark rate (REPO) from time to
time, on the date as decided by the Bank. The Bank has the option to
reduce or increase the EMI or extend the repayment period or both
consequent upon revision in interest rate.

Intimation of change in EBLR Interest Rate:-

Borrower shall be deemed to have notice of change in the rate of interest

when the changes in REPO rate are notified at/displayed at the branch
notice board or published in a newspaper or in the website of the Bank/
RBI or made through the statement of account/passbook.

In addition to that a communication will be sent to borrower at their

registered e-mail address and through SMS at their registered mobile
number, as available with the Bank

Penal CHARGES:-

1. For Home Loans above ₹ 25000/-, if the irregularity for any reason,
including a bounced cheque/NACH/SI exceeds EMI or Instalment
amount, for a period of one month, then penal charge will be
recovered @2% p.a applied on overdue amount on a monthly basis
for completed months. If the account is regularized on any date of
the month, no penal charges will be applied for default. Besides the
Bank shall also charge a penalty, the rate of which shall be at the
discretion of the Bank from time to time, for every bounced
cheque/NACH/SI for any reason whatsoever in addition to the penal
charge.
 2. In case valid mortgage is not created by the borrower (s) in favour
of the Bank for any reasons within 60 days of execution of Sale
Deed, or the issue of possession letter by builder, whichever is
earlier, penal charge will be recovered @2% p.a, applied on entire
outstanding on a monthly basis for completed months.

Repayment:
The loan is to be repaid in Equated Monthly Installments over the tenure
of the loan. The repayment installment commences from a date specified
in the sanction letter. The liability to the bank will be extinguished only
when the outstanding in the loan account becomes Nil, on payment of
residual amount, if any.

Dynamic SI/NACH mandates with maximum debit amount i.e. 120 % of

actual EMI has to be tendered to address the issue of upward revision in
rate of interest. However, the lodgement for monthly recovery will be done
for actual EMI amount at the material time.

Loan Tenor:
Maximum 30 years (or) up to the age of 70 years (the age by which the
loan should be fully repaid) of the borrower, whichever is early.

Pre-closure Charges:-
No pre-payment/ Pre-closure penalty will be levied on floating interest
Home Loans irrespective of the period for which the account has run or
source of funds.

Security:
Primary:-
The loan will be secured by Equitable / Registered mortgage/extension of
mortgage of the land and building/flat for which the loan is to be
sanctioned.

Collateral:-
Liquid securities of adequate value in the form of Life Insurance policies,
Government Promissory Notes, shares/ debentures, gold ornaments or
such other tangible security as may be deemed appropriate, may be
pledged by the customer in lieu of mortgage of the residential property
financed by the Bank.
Interim Security Pending Mortgage:-
Wherever creation of mortgage is likely to be delayed for any valid reason,
suitable security including third party guarantee, as considered necessary,
may be taken for the interim period.

Utilisation of the loan:

The amount of the loan shall be utilized strictly for the purpose detailed in
the Arrangement Letter and in the manner prescribed. The construction
of the house/flat or the modification/extension proposed by the borrower
in the existing house/flat should be strictly according to the plan approved
by the Local Authorities/Town Planning and Development authorities. Any
modification desired in the plan as originally approved, can be undertaken
only after express sanction for it has been obtained from the appropriate
authority.

Insurance:
The house/flat purchased/constructed with Bank’s finance should be
insured against the risk of fire/riots/earthquakes/lightning/ floods etc. in the
joint names of the borrower and the Bank for the actual project cost after
netting off the cost of land (including undivided share of land in case of
flats), cost of stamp duty and registration charges. Cost of the same shall
be borne by the borrower.

Inspection: The Bank will have the right to inspect, at all reasonable
times, the borrower’s property by an officer of the Bank or a qualified
auditor or a technical expert as decided by the Bank and the cost thereof
shall be borne by the customer.

Fees and charges:

 Processing fee: Collected at the time of Documentation.

0.35% of the loan amount plus applicable GST. Minimum: Rs. 2,000/- plus
applicable GST, and Maximum: Rs. 10,000/- plus GST.
  Other Fee/Charges / Expenses:

Reason Particulars Fee Amount

Collected for Legal Opinion & Search Report Actual expenses
payment to will be charged
empanelled.
Advocate/Valuer Valuation Fee
Collected for Stamp Duty (% of project cost)
Payment to Registration Charges (% of
State Govt project cost)

Fees paid to Bank’s empanelled advocate and valuer for their professional
services will not be refunded even if the loan is not sanctioned for any
reason. State Bank of India retains the right to alter any charges or fees
from time to time or to introduce any new charges or fees, as it may deem
appropriate, with due intimation to customer.

 Conversion charges for switching loan from MCLR /BASE

RATE / SBAR regime to EBLR regime:

Option for switching over loan from MCLR /BASE RATE / SBAR to EBR
is permissible on payment of Switch-over Fee of Rs. 1,000/- per
account+GST.

 Failed or Non-payment EMI / Cheque returned/SI dishonours:-

Reason Penalty
Failed / Non Payment of EMI Rs.250 + GST per EMI missed.
Cheque returned (for insufficient Rs.500 + GST
funds only)

Failed SI /NACH Rs.250 + GST per failed SI /NACH

The above-mentioned rates may vary from time to time.

 Borrowers can collect the original title deeds within 30 days of full
and final payment of Bank’s dues (Loan) from the linked RACPC/
RASMEC. In case the original title deeds are not collected within
the prescribed time limit, applicable Safe Custody Charges would
be levied.
Fees and Charges are subject to change from time to time at the
sole discretion of SBI.

Disbursement:

The loan will be disbursed only on the following conditions:

1. All the security documents prescribed have been executed by

borrower/co-applicant (s)/ guarantor/s

2. A valid mortgage (equitable or registered if equitable mortgage is not

possible) has been created in favour of the Bank as per the laws of the
State.

3. Wherever creation of mortgage is likely to be delayed for any valid

reason, suitable security including third party guarantee, has been
taken for the interim period.

4. The loan will be disbursed in stages where a loan for construction is

desired, or purchase is through payment to seller in installments.

5. All necessary statutory compliances are in place.

SBI may disburse the quantum of loan in lump sum or in installments at

its own discretion depending on the level of construction of the House/Flat
as acceptable to SBI.

SBI will disburse loan amount directly to the builder/seller/society as the

case may be and as requested / specified/ directed by the customer to
SBI at the time of each disbursement. SBI shall not be responsible / liable
in any manner whatsoever for any delay by the customer in providing such
request/ specification/ direction to SBI and the customer shall not claim
any costs, charges and expenses in any relation to any non-disbursal by
SBI due to any such delay by the customer.

The Bank reserves the right to collect any tax if levied by the State/Central
Government and/or other Authorities in respect of this transaction.
Default:
In the event of default i.e. if the amount due is not paid by due date, the
customer will be sent reminders from time to time for payment of any
outstanding in his loan account, by post, fax, telephone, email, SMS
messaging and/or through third parties appointed for collection purpose
to remind, follow-up and collect dues. Any third party so appointed, shall
adhere to the Indian Banks Association’s (IBA) code of conduct on debt
collection.

ADDITIONAL TERMS AND CONDITION FOR COMBO HOME LOAN

@2% p.a, applied on entire outstanding on

a monthly basis for completed months, if
Penal mortgage is not created within 1 month of
charges for execution of sale deed in case of outright
Non purchase
creation of @2% p.a, applied on entire outstanding on
EM a monthly basis for completed months, if
mortgage is not created within 6 month of
final disbursement in case of construction.
@2% p.a, applied on entire outstanding on
Penal a monthly basis for completed months, if
charges for approved plan is not submitted within 6/9
Non months of outright purchase
submission @2% p.a, applied on entire outstanding on
of approved a monthly basis for completed months, if
plan approved plan is not submitted Within 6
months in case of deferred purchase.
Penal @2% p.a, applied on entire outstanding on
charges for a monthly basis for completed months in
Non the event of non-completion of construction
completion within 24 months from the date of approved
of plan.
construction
Customer Service:
For any service-related issue, customer can get in touch with SBI by:
• Calling Customer Help Line Numbers
• Contact Customer Grievance Cell at our Local Head Offices
• Write to Grievance Cell at our Local Head Offices
(Details on Help line Numbers and Grievance Cell available on
www.sbi.co.in)

In case a customer is not satisfied with the handling of grievance by the

Local Head Office, a communication may be sent (enclosing the message
sent earlier to Local Head Office) to the

Deputy General Manager (Customer Service),

Customer Service Dept, State Bank of India;
State Bank Bhawan, 4th floor;
Madame Cama Road,
Mumbai-400 021,
Telephone No. (022) 22029456, 22029451 22740432,
22740431, 22740433 Fax no. (022) 22742431.
E-mail address - [email protected].

Disclosure:

State Bank of India is authorized to disclose from time to time any

information relating to the loan to any credit bureau (Existing or Future)
approved by Government of India and Reserve Bank of India without any
notice to the borrower. State Bank of India is also authorized to make
inquiries with the Credit Information Bureau of India (CIBIL) and get the
applicants Credit Information Report.