SBI Home Loan Procedure

Please Note: SBI is not a Paisabazaar partner. Offers would be from partner banks/NBFCs only.

In today’s digital world, it is far easier to do things online rather than the conventional way. Such is the case with the home loan application. Customers can easily apply for an SBI home loan online in a few simple steps at the convenience of their home. However, there are certain formalities that you need to be aware of beforehand. Here is a step-by-step guide to ease you through the SBI housing loan procedure.

1. Property Documents: Get all the property-related documents and legal documents from the builder such as share of agreement, sanctioned site plan, booking receipt, and copy of the cheque.
2. E-Stamping: Get the sales agreement and construction agreement e-stamped. For ongoing construction, two agreements are made, one for sales and another for construction. [Read Also: SBI Plot Loan]
3. Submit Application: Submit the application form by attaching along all the necessary documents related to property and income.
4. Soft Approval: After submission of application, the bank will check the CIBIL score of the applicant and his/her income documents. Post this, the eligibility is determined, and soft approval is given.
5. Legal Opinion: At this stage, all the legal documents will be verified by an SBI panel’s advocate. It is important to underscore that in some cases additional documents may be required such as Encumbrance certificate (till current date) and the Receipt of tax paid. [Click to check Home Loan Tax Benefits]
6. Technical Check: The history and current condition of the property is checked by the bank’s panel to check if the property meets the standards of the bank or not.
7. Property Valuation: The property valuator from the SBI panel values the property based on which the loan amount will be ascertained. Collect the Valuator statement.
8. Loan Sanction: After successful verification and inspection, the loan will be sanctioned. The next step would be documentation; carry all the original documents submitted along with the online application.
   • In case there is a guarantor, both borrower and guarantor need to be present at the bank for documentation.
   • If there is a landlord share, presence of the builder is also mandatory.
9. Loan Agreement: After loan sanction, the bank then prepares a loan agreement which needs to be duly signed by the borrower. On the date of the registry, a representative from the bank accompanies the borrower to the registrar’s office and collects the original property documents from the seller or builder itself.

Note:

• Collect NOC from the builder stating that the property is mortgage-free.
• In case of construction, a demand note stating the amount of money required for a particular stage of construction.
• Make sure that the demand note matches with the schedule of payment as per the loan agreement.
• In case of part disbursement, the borrower can ask for the next part of disbursement by sending an email to the bank.

This detailed guide would definitely help a borrower to be well-prepared in advance for smooth and timely processing of the home loan.