Q.1. Can the  Housing Loan be sanctioned  both as Term Loan and also as an      Overdraft ?

Ans. Yes. Housing Loans would be sanctioned  as Term Loan as well as  an Overdraft under SBH Maxgain scheme.

Q.2.  What is the maximum amount of loan for Housing purpose ?

Ans.  If the borrower’s  age is 21-45 years: 60 Net Monthly Income for salaried people, and  5  Net Annual Income in case of businessman

If the  borrower’s age is above 45 years: 48 Net Monthly Income for salaried people and  4 Net Annual Income in case of businessman

        The actual loan amount  would  be determined on the basis of repaying

        capacity  of the borrower.

Q.3.  How about  Rate of Interest ?.

Ans.  The borrower is free to  choose Floating or Fixed  Rate of Interest.

         The Fixed Rate of Interest is subject to Reset every 3 years. The floating   

          rate of interest is subject to changes as & when Bank decides to change  

         BPLR.

Q.4.   How is  the loan  amount  disbursed ?.

Ans. Normally the loan amount is disbursed in 3 to 4  installments commensurating the progress in  construction.

Q.5.  What is the security to be provided.

Ans. The loan is secured by  a) Equitable Mortgage of property,  b). If the creation of Mortgage is not feasible, any tangible security of adequate value in the form of LIC Policies, Govt. Promissory Notes, Gold Jewellary etc. would be considered.

Q.6. Can the  Loan be sanctioned  for purchase of Plot alone ?

Ans.  Yes. Interest would be charged at Bank’s  PLR.(Prime Lending Rate)

Q.7. If the House is not constructed after purchase of plot due to any reason?.

Ans.  Normally the Housing loan is sanctioned for purchase of both plot and construction of House there on. If the borrower does’nt commence construction of House with in 6 months from the date of purchase of plot for any reason, the Housing loan would be treated as plot loan and interest would be charged at Bank’s PLR.

Q.8.  What is the  Borrower’s stake?

Ans.  20% for purchase or construction  of house / flat / extension of existing house.

Q.9.  Can  the income of spouse also be computed  for arriving at the eligible loan amount?

Ans.  I)  If the property is jointly held with the spouse and the spouse is a co-

         Borrower,

         II) If the property is held in single name and the spouse stands as guarantor

Q.10.  Is Take over of Housing loans from other banks/ financial institutitions Allowed ?

Ans.  Yes. Subject to certain conditions.

Q.11.  What is the repayment schedule ?

Ans.   The maximum repayment period is 20 years or 240 months.

For applicants upto 45 years of age    – max. 20 years.

For applicants above 45 years of age – max. 15 years.

Q.12.   What are the Processing charges ?

Ans.   At present there are no processing charges for sanction of Housing loans.

Q.13.  Any Pre-payment charges are levied ?

Ans.   Prepayment charges   at 2% will be collected.

Q.14.  Will the Bank Insure the House ?.

Ans.   Yes. The bank will insure the house under SBI Bankassurance scheme.