Personal Banking

We accept the natural process of questions and answers. Here are answers to some of the queries that are voiced by our customers about some of our services.
Personal Banking

Savings Bank Account

What are the charges for non maintenance of minimum balance in the account?
`300/- per quater at Metro/ Urban Branches & `150/- per quarter at Semi-urban and Rural Branches.

Do I have nomination facility?
Yes, you can.

Can I take loan against my Savings Account balance?
No, you cannot.

Can I withdraw cash from Non- home Branch?
Yes, you can withdraw, upto a limit of `50,000/-

Can I pay my utility bills through my Savings Account?
Yes, you can pay your utility bills through Internet Banking (upto an amount of `5.00 lacs), as well as through Mobile Banking and can even schedule your payments to avoid any delay before hand.

Can I avail the facility of DEMAT and Trading Account?
Yes, it will be issued to you, at your specific request.

Savings Plus Account

What are the charges for non maintenance of minimum balance in the account?
`300/- per quater at Metro/ Urban Branches & `150/- per quarter at Semi-urban and Rural Branches.

Once my money gets sweeped to Term Deposit Account, can I re- sweep my money back, in case of requirement?
Yes, it will be automatically credited to your account, once you demand for any amount above the limit of `50,000/- or the minimum threshold limit, as specified by you.

Can I take loan against my Term Deposit Amount, sweeped above the threshold limit?
No, you cannot.

For what period/ term my money will be deposited, once sweeped from my savings account?
Your money will be deposit for the term of min. 1 year & max. 3 years However, if not directed by the customer, the default term will be 1 year.

Can I pay my utility bills through my Savings Plus Account?
Yes, you can pay your utility bills through Internet Banking (upto an amount of `5.00 lacs), as well as through Mobile Banking and can even schedule your payments to avoid any delay before hand.

SBH Smart Salary

What is the minimum balance in SBH Smart Salary Accounts?
Zero balance.

What is the threshold?
The threshold for sweep is `10,000/- i.e. balance above `10,000/- will be converted to TDR.

What are the add-on services available with SBH Smart Salary Accounts?
Sweep and Reverse sweep, Cheque Protection, Overdraft, Free ATM, Free Internet banking, Free SMS alerts, Free Demand Drafts as per eligibility, Free statement of account, Free Cheque leaves, Any branch banking, ASBA, Demat (optional).

Who are eligible for opening SBH Smart Salary Accounts?
All permanent salaried employees of State and Central Government Departments and undertakings, public sector units and other institutions and corporates in public and private sector.

I am maintaining my Savings Bank Account from your Bank. My salary is being credited to the Account. How can I change my existing account to SBH Smart Salary account?
Conversion from existing Savings Bank to SBH Smart Salary facility is available. The Company/ Official may approach the branch and apply on the prescribed form.

What is the amount of loan eligible for the SSS accounts?

  1. Inbuilt Cheque protection facility for SSS Gold accounts equivalent to one month net salary.
  2. OD facility for SSS silver accounts not exceeding two months net salary credited into the SSS account in the immediately preceding month, subject to repayment within 6 months basing on the merits and case by case basis.

I am drawing salary of `50,000/- per month. Can I open SSS account with you?
Our SSS Gold account is suitable.

What is the interest I am going to earn on Balances in SBH Smart Salary Account?
Interest on balances in SSS Savings Bank account will be the same as applicable to Savings Bank accounts and will be calculated on daily balances maintained by the account holder in Savings Bank. The Interest on term deposits created through the auto sweep facility will be as per the published interest rates for the various maturities on the date of sweep and depends on the tenor period chosen by the depositor at the time of option for auto sweep (the default tenor is 1 year).

What is the procedure to draw the balance of TDR created out of auto sweep?
You can draw on your term deposits created out of auto sweep conveniently by merely issuing a cheque or through using our alternative delivery channels such as ATM or Internet banking. No specific written or oral request is necessary.

Current Account

Will I be getting interest on my Current Account balance?

I am a Partnership firm. Just a single partner’s document will serve the requirement of opening the account?
No, all the partners, as mentioned in the partnership deed are required to submit their documents.

I am a Corporation/ Company. Will I be getting an ATM cum Debit Card?
No, you cannot. Only Individual Accounts, Joint Accounts, Proprietorship Accounts can avail ATM cum Debit Card facility, under this Account.

Upto what amount, can I transfer money online?
The maximum limit is `5.00 lacs per day.

On all Fixed Deposits

What is a range of tenure for which I can open a FD account?
You can deposit money as short a period as 7 days and upto 10 years.

Is TDS applicable on FDs?
Tax is deducted at source, from the interest on Fixed Deposit, as applicable, as per the Income Tax Act, 1961.

Do Senior Citizens get an extra benefit on FDs?
Yes, they get extra benefits in the form of higher interest rate of 0.30%.

Is nomination a must for Fixed Deposit?
Yes, nomination is a must.

Can a minor be a nominee?
Yes, a minor can be a nominee, provided an appointee is assigned to the nominee, till the minor attains the majority.

What is Special Term Deposit?
A Special Deposit is one, in which interest is compounded quarterly and reinvested with principal amount.

SBH e-invest (ASBA)

What do you mean by IPO, FPO and Rights Issue?
IPO – It is an initial pubic offering (IPO), wherein a company (called the issuer) issues common stock or shares to the public for the first time.

FPO – Follow on Public Offer (FPO) is for the companies which have already listed on exchange but want to raise funds by issuing some more equity shares.

Rights Issue – Rights issue is a method used by companies to raise funds by issuing additional stocks to the existing share holders of the company.

What is ASBA?
It is a simple, safe and smart way for applying Public Issues. It is a SEBI designed tech based product “ApplicationSupported by Blocked Amount” (ASBA), as a supplementary process for applying to Public Issues (IPOs/FPOs/Rights Issue/NFOs).

What is the difference between the existing IPO process and ASBA process?
In the existing IPO process, the physical application forms along with cheque / Demand Draft are to be submitted with any of the Syndicate Members.
Under ASBA process, the application amount is blocked in investors account and proportionate amount to the shares allotted is debited.

Whether State Bank of Hyderabad is offering ASBA?
Yes, we are registered with SEBI to act as SCSB to offer ASBA services. It is referred as “SBH e-Invest (ASBA)” in our Bank.

What are the benefits of ASBA to the customer?

  1. Earn interest till allotment of shares as money stays in the account
  2. No need of enclosing cheque/draft with the application
  3. Lien marked only to the extent of the bid amount
  4. No physical refund involved, no hassle of lost / delayed refunds

How many ASBA applications a customer can make?
A customer can submit only one application on his name, but he may submit upto three bids. However, a customer can submit upto five applications on different names like family members etc., from one account.

Housing Loan

Can I get an in-principle approval and actually avail of the loan later?
What we do is, before you choose the house you want to buy, we give you an in-principle approval based on your income and capacity to repay. This makes the entire process of identifying and buying a house easier and more flexible. You will not be under pressure to identify a house as you know how much funds the bank would make available to you.

And how long is this approval valid?
The in-principle approval is valid for 3 months

How long does it take to get my loan sanctioned?
It takes around two weeks for processing of one’s application if all the necessary documents are in order and takes another week for the bank to inspect the property papers and make the disbursement

How is my Home Loan eligibility determined?
Your Home Loan eligibility is determined by your repayment capacity, taking into consideration, factors such as: Your:

  1. Income
  2. Qualifications
  3. Age
  4. Spouse’s income
  5. No. of dependants
  6. Stability and continuity of occupation
  7. Assets/Liabilities.

The most important concern of the bank in determining your loan eligibility is that whether or not you are contentedly able to pay off the amount you borrow.

Who can be a Co-Applicant?
A Co-Applicant(s) is/are the Co-Owners of the property in respect of whom the financial assistance has been sought. However all co-applicants need not be co- owners. Usually co-applicants are: husband/wife, father/son, mother/ daughter etc.

What is the Fixed Rate of Interest?
Fixed Rate of Interest means that the interest rates remain FIXED for the entire duration the loan. This basically means that you do not benefit, even if the rates of interest drop in the market.

Do I get a tax benefit on Home Loan?
Yes, you are eligible for tax benefits on the principal and interest components of the loan under the Income Tax Act, 1961.

Can I prepay the loan? Are there any penalties?
There are no charges for Pre-payment of Housing Loans.

How do I benefit if the interest is calculated on a daily reducing balance?
On an annual reducing balance method, you will continue to pay interest on amounts you repay during the coming one year as the interest for the year is determined on the basis of the balance outstanding at the beginning of the year.

In the case of the daily reducing balance, which is the methodology we employ, your interest is calculated only on the outstanding loan amount, which reduces every time you pay off your EMIs or make any prepayments. This in essence lowers your effective rate of interest significantly.

SBH Education Loans

Who is eligible for an Education Loan?
Students who wish to pursue higher education .You need to be an Indian resident having secured admission in any of the approved course or universities.

Which all expenses does the loan cover?

  1. Fees payable to college/school/hostel
  2. Examination/Library/Laboratory fees
  3. Purchase of Books/Equipment/Instruments/Uniforms
  4. Caution Deposit/Building Fund/Refundable Deposit (maximum 10% tuition fees for the entire course)
  5. Travel Expenses/Passage money for studies abroad
  6. Purchase of computers considered necessary for completion of course
  7. Any other expenses required to complete the course like study tours, project work etc.

Do I have to pay part of the fees?

For course with total expenses of `4.00 lacs no part of the fees is required to be paid by you. However, for expenses higher than `4.00 lacs contribution as follows is required:

  1. For loans up to `4 lacs : No Margin
  2. For loans above `4 lacs:
  3. Studies in India: 5%
  4. Studies Abroad: 15%

Is there any kind of repayment that has to be made in the moratorium period?
Not necessary. However, if interest is serviced during moratorium period, an incentive of 1% interest concession is extended to the borrower.

What would be the tenure of the loan?
Maximum tenure of the loan can be 7 years after commencement of repayment.

Is there a need of a co-applicant?
Yes, a co-applicant is required. The co-applicant can be your parents, siblings, spouse or family relative

What is the quantum of the loan?

  1. Studying in India – Max `10 Lakhs
  2. Studying abroad – Max `20 Lakhs

Would the loan be disbursed in favor of the Institute?
Yes. Tuition & hostel fee will be disbursed directly to the educational institute as per the schedule of fee given by the Institute/college (semester – wise/yearly).

What are the acceptable collaterals for taking an educational Loan?
Collaterals are required only for educational Loans above `7.5 lakhs. The security can be in the form of land / buildings / Govt. securities/ Public Sector Bonds / Units of UTI, NSC, KVP, Life policy, Gold, Shares/debentures, bank deposit in the name of student / parent.

Do I get any tax benefit by taking an educational Loan?
Once you start repaying the loan, you can deduct the interest amount from your total income while calculating tax. So, the effective interest rate on the loan works out to a lower amount for that particular year.

Can I get another loan for further education?
Second time Education Loan can be sanctioned to the same student borrower for completion of next higher course at the discretion of the Bank. For example, a student who has taken the loan for a Bachelors degree can apply for another loan for the completion of Master’s degree.

Can I apply another education Loan for my second child?
Yes, you can again avail an Education Loan for your second child. Education Loan is given for an individual and the limit of `4 lakh is also for an individual i.e. the education loan is not a loan for family as a unit. In other words, `4 lakh limit is not for family wise but individual wise. That means, any number of applicants belonging to the same family may be sanctioned loans upto `4 lakh individually without insisting for any security.

SBH Gold Loans

Do you sanction Gold Loans against coins?
Yes, SBH sanctions loans against gold jewellery as well as gold coins issued by banks.

Is Gold Loan available in all branches?
Yes, all branches of SBH provide Gold Loans.

What are the charges you charge for Gold Loans and how much?
There is just one charge levied in SBH and this is only 1.00% of the loan amount, with a minimum of `100/- and maximum of `10,000/-.

Can I make part payments during the period of loan?
Yes, we permit part payments routinely. The interest is also charged on a daily product, based on the balance at the end of each day, so that the part payments effectively reduce the interest charged. And also, to enable you to reduce your interest costs further, we even have a product which operates in the manner of a Current Account Overdraft. This is how the scheme works: after the pledge of gold under Overdraft, a limit is made available to you in a Current Account and a Cheque Book is provided. You can draw whatever amount you require and freely deposit any surplus you may have into the account and draw it again upto the limit sanctioned. Since the interest is charged only on the balance at the end of each day this allows you to minimise your interest payment.

How much time does it take to get a Gold Loan?
SBH takes pride in the fact that the average time taken for giving the Gold Loans is just half-an-hour.

Is Gold Loan available only on certain business days or at certain timings?
Not at all, Gold Loans are available on all working days and during all business hours However, it would be advisable to contact the branch concerned or telephone our toll free number 1800 425 4055 for non peak time, so that disposal could be faster.

I am not a customer of SBH; would I get a Gold Loan?
Yes, sure there is no such restriction. If you are in requirement of funds and ready to pledge 22/ 18 carat gold, you are always welcome. However, we would require a documentary proof of ID and address. You would be doubly benefited with the bank opening Savings Bank Account for you.

Will I get back the same ornaments at the time of return?
Yes, the ornaments pledged would be returned in exactly the same condition. In fact, we take a lot of care in their safe custody and storage and which saves your costs and risks as well.

Loan for Purchase of Gold Ornaments/ SBH Gold Coins

What is the purpose of the loan?
To facilitate customers to purchase 22/18 carat Gold Ornaments with hallmark from jewellers with whom Bank has entered into an MOU and specially minted Gold Coins of our Bank with the object of an investment or meeting social obligation of marriage or gift to some one.

In which type of gold, customer can take loan?
Customers can purchase 22/18 carat Gold Ornaments with hallmark from jewellers with whom the Bank has entered into an MOU and also they can purchase our Bank Gold coins from this loan.

What is the minimum loan amount?
For Gold Ornaments:`100,000/-;
For SBH Gold Coin: `50,000/-;

What is the maximum loan amount?
Max. Loan Amount: `15,00,000/-;

Who are all eligible for loan?
Any individual in the age group of 21 to 60 yrs who has independent/ regular source of income.

What is the scale of finance for Gold Loan?
Scale of finance is fixed by the Bank based on the average price of Gold over a past fixed period to take care of volatility in gold prices to ensure adequate margin of the customer.

Presently the scale of finance is as under:

Type of Gold Coins/ Ornaments Scale of Finance per gram (Net wt)
For specially minted Gold coins sold by Banks and 22 carat gold ornaments or higher purity with BIS Hallmark of 0.916 `1800/- or 75% of the market value of Gold whichever is lower.
22 carat gold ornaments or higher purity without BIS Hallmark `1650/- or 75% of the market value of Gold, whichever is lower.
18 carat gold ornaments `1000/- or 75% of the market value of Gold, whichever is lower.

What is the maximum period for repaying back the loan amount?
The maximum repayment period is 5 years.

Is the scale of finance fixed?
No, the scale of finance varies as per the movement of gold prices and is reviewed by the Bank periodically.

What if the gold prices drop drastically?
The customer will have to repay the amount that is in excess of the value of security pledged after periodical revaluation.

What if the value of gold prices goes up drastically?
The customer will not be entitled for any additional loan amount after revaluation of gold price when it moves upwards.

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