SBI Home Loan Process: A Comprehensive Guide

In the age of the internet, obtaining a home loan online has never been more accessible. SBI boasts an extensive network of branches across India, ensuring customer service throughout the nation. Our commitment in this blog is to demystify SBI’s home loan process. Read further to explore the intricacies of the SBI home loan process. we’re here to provide you with a straightforward roadmap.

SBI home loan process 

The State Bank of India (SBI) home loan process can seem intricate, but we’ve broken it down into a manageable step-by-step guide to help you understand each phase of your home loan application.

Step 1: Preparing Property Documents

Before you embark on your SBI bank home loan process journey, ensure that you have all the necessary property-related documents at your disposal. These typically include the booking receipt and a copy of the cheque provided by your builder. Having these documents ready in advance will streamline the application process.

Step 2: Legal Verification

Once you’ve collected your property documents, it’s essential to consult a lawyer approved by SBI to validate the legal aspects of the SBI housing loan process. The lawyer will meticulously examine the Sales Agreement and Construction Agreement. In some cases, additional documents like an Encumbrance certificate and tax payment receipts may be required. This step may take some time due to the multiple documents involved.

Step 3: Property Valuation

Following successful legal verification, the next step involves a property valuation conducted by a valuator enlisted by SBI. Once the valuation is complete, you’ll receive a letter detailing the property’s estimated value.

Step 4: E-stamping or Franking

SBI mandates that the Sales and construction agreement be e-stamped or franked. The cost of e-stamping varies depending on your property’s value. Franking can be done at the register office, while e-stamping is available at select register offices, post offices, and syndicate banks.

Step 5: Submission of Application

With the legal and valuation steps completed, visit your nearest SBI branch to submit your SBI home loan disbursement form along with the required documents. These documents may include the legal opinion, valuation statement, and any additional paperwork as specified by the bank.

The application form comprises five sections:

1. Form-A: Fill in your details as instructed in this initial section.
2. Form-B: Provide your employment and income details as specified in the second section.
3. Form-C: In the third section, choose the SBI home loan scheme you’re interested in and complete the property and loan details.
4. Form-D: The fourth section is for declaration purposes. Sign the form accordingly.
5. Annexure-A: If you wish to check your eligibility for the “Pradhan Mantri Awas Yojana (PMAY)” subsidy, complete this annexure. If you have a guarantor or are applying for a joint home loan, you must also have them fill out the application form.

The required documents include:

• Completed loan application
• Three passport-size photographs
• Identity proof (Voter ID card, PAN Card, Passport, or Driving Licence)
• Address proof (Utility bill or Aadhaar Card, Passport, or Driving Licence)
• For salaried individuals, salary slips for the last three months and Form-16 or IT Returns for the past two years are needed.
• For self-employed individuals, additional documents such as proof of business address, balance sheets, along with P&L statements for the past three years, business licence details, and Form-16A (if applicable) are necessary. Professionals like Chartered Accountants and Doctors must provide their qualification certificates.

• Farmers should submit the last two years’ income certificate, land revenue records, and bank account statements for the previous 12 months. 
• Non-resident Indians (NRIs) must provide a copy of their valid visa or work permit and other specific documents based on their work profile.

Step 6: Waiting Period

Once your documents are submitted, the application process begins. SBI will meticulously review your documents, including your credit history and CIBIL score, to determine whether to sanction the loan. An application processing fee is charged, amounting to 0.35% of the loan amount plus applicable GST, with a minimum of Rs. 2,000/- and a maximum of Rs. 10,000/- plus applicable GST.

The approval waiting period can vary from one applicant to another. SBI’s special home loan branch can disburse the loan within three days, but it’s essential to follow up regularly to expedite the process. Request property inspections and any other actions that could hasten the loan approval.

Step 7: Additional Documentation

Once your loan is sanctioned by SBI, you’ll be notified to submit additional documents, including two E-stamps worth Rs. 400, one E-stamp worth Rs. 200, and another E-stamp of Rs. 200, along with other documents outlined during the initial application. Both you and your guarantor must be present at the bank to complete this stage.

Step 8: Loan Disbursement

If your application successfully clears all verifications, SBI will issue a loan sanction letter. This letter will detail the sanctioned loan amount, the rate of interest per annum, and its validity (typically six months). The letter may also contain additional terms and conditions.

To assess the loan application through various SBI home loan disbursement stages, SBI will perform legal and technical checks, ensuring:

• The identity proof provided is authentic and valid.
• The residence proof is genuine and registered in the applicant’s name.
• Bank statements are cross-checked with the concerned bank.
• Any ongoing loans are verified.
• Comprehensive checks of income tax returns or Form-16 are conducted.
• Credit history and present CIBIL score are reviewed.
• Relationship proofs with the co-applicant are verified in the case of joint home loan applications.

Upon loan sanction, you’ll need to obtain specific documents from the builder, including a No Objection Certificate (NOC) confirming that the property is not mortgaged elsewhere. If the property is under construction, a tripartite agreement may be necessary, along with a demand note from the builder, matching the payment schedule.

For armed forces personnel, SBI offers special home loan schemes like the SBI Shaurya Home Loans. If you’re interested in comparing SBI with other leading lenders, check out our comprehensive comparison of SBI vs HDFC Home Loan.

Step 9: Registration

Before initiating the registration process, verify the stamp duty and inform the bank accordingly. Once registration is complete, an SBI representative will either hand over the Demand Draft (DD) to the builder or direct you to collect it from your branch.

SBI Home Loans offer a flexible advantage with no prepayment penalty, allowing you to reduce your interest burden by making additional payments on your loan without any worries.

To learn more about home loans with EMI waivers, explore our detailed guide on Home Loans with EMI Waivers.

Navigating the SBI Home Loan Process becomes a breeze with our step-by-step guide. Now, the next step for you is to gather your property documents, consult an approved lawyer for verification, and smoothly proceed through the SBI home loan procedure. While self-navigation is possible, you may encounter some hurdles. The good news is that NoBroker Home Loan Services is here to provide expert guidance, ensure a hassle-free process, and expedite your journey to homeownership. Reach out to us today!

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