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Housing Loan |
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Q.1
How long does it take to get my loan sanctioned in SBBJ?
A. Your loan can get sanctioned in a matter of few days only
provided you have all the documents in place and submit the same
with nearest SBBJ branch. |
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Q.2
Can I get an in-principle approval first and actually avail of
the loan later?
A. The Bank can give you an in-principle approval based on your
income and capacity to repay before you actually choose the
house you want to buy. This makes the entire process of
identifying and buying a house easier and more flexible. You
won't be under pressure to identify a house, as you know how
much funds the bank would make available to you. |
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Q.3
How long is this in-principle approval valid?
A. This in-principle approval is valid for 3 months to give you
sufficient time to choose a flat/house of your choice.
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Q.4
Can I apply jointly with my spouse? Will both our income be
taken into account for calculating the loan amount?
A. Yes, income of your spouse can be clubbed with you for the
purpose of calculation of the loan amount. This can be done
either when the property is jointly held with the spouse or the
spouse stands as a guarantor. Even the income of son/daughter
having independent source of income and living with you can be
clubbed. Thus, we ensure a great deal of flexibility in the
entire exercise of financing your house.
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Q.5
Can I get second housing loan for the purchase of another
property ?
A. Yes, if you have repaying capacity, you can avail second
housing loan. |
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Q.6 Will SBBJ
takeover my housing loan from other banks?
A. Yes, we will consider takeover of housing loan provided possession of house
been taken by you, repayment of existing loan commenced and account is regular. |
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Q.7 What are the
processing fees charged by the bank?
A. A very nominal processing fee of 0.60% is charged by us. The cost of approved
advocates search report, cost of estimates for construction, valuation, stamps,
etc. are to be borne by you.. |
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Q.8
What security do I have to furnish?
A. SBBJ home loans require a mortgage of the property for which
the loan is being taken. Where mortgage can't be provided, other
tangible security would need to be provided. The title of the
property should be clear, for which a certificate would be
required from the Bank's approved advocate, safeguarding your
interests as well as Bank's interests.
Additional security may be required where the house is under
construction. This may be for an interim period, by way of
tangible security or guarantees from sound and solvent
individuals.
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Q.9
How do I benefit if the interest is calculated on a daily
reducing balance?
A. 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, 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. |
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Q.10
Can I prepay the loan? Are there any penalties?
A. 2% penalty on the amount prepaid in excess of normal EMI dues
is levied in respect of preclosure of Housing Loans before
expiry of half of the original tenure (i.e. For a loan with
repayment tenure of 10 years, prepayment penalty will be charged
if the loan is pre-closed before 5 years). |
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Q.11
What is EMI?
A. EMI stands for Equated Monthly Installments. This installment
comprises both principal and interest components. Use our EMI
calculator to find out your monthly payments based on the loan
amount, the rate of interest and the repayment period. Choose
the combination that best meets your financial resources and
requirements.
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Q.12
If I have funds, is it still worthwhile to avail of a bank loan
for buying a house?
A. It is generally advantageous to take a Housing loan as it
would enable you to get tax exemptions. However, please consult
your CA/ income tax advisor to know benefits/disadvantages in
your specific case.
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Q.13
What are the tax benefits of taking an SBBJ Housing Loan?
A. Under the Indian Income Tax Act of 1961, resident Indians are
eligible for certain tax benefits on principal and interest
components of a loan.
Under Section 24(1), interest repayment of Rs.1,50,000/- per
annum qualifies for tax saving under the new Finance Act,
provided the property is acquired or constructed with capital
borrowed after April 1, 1999 and the acquisition/construction is
completed before April 1, 2003 , and the property is self
occupied.
An added benefit under Section 80 C on repayment of principal
amount subject to the overall ceiling of Rs.1,00,000/- is also
available on the same loan.
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Q.14
How does SBBJ housing loan compare with those offered by other
institutions?
- A. There is total
transparency with regard to the rate of interest and the
fees charged by us.
- We offer housing
loans with the lowest equated monthly installments, i.e. you
pay substantially less in repayments as compared to others.
- We have no upper
limit. The loan amount is determined by repaying capacity
and the value of property to be financed.
- We offer loans
for the longest tenors (up to 20 years).
- We provide
finance for both new and old houses/flats and for
construction of houses. Cost of furnishing the house can
also be included in the project cost.
- With an SBBJ
housing loan you can choose between fixed rates of interest
and floating interest rates.
- We levy interest
based on daily reducing balance, unlike the annual reducing
balance method used by several other financiers/banks.
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Q.15
Where can I avail SBBJ Housing loans?
A. We have a large network of 832 branches. All our branches
offer housing loan. |
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