SBI Takeover of Home Loans | Documents | procedure

Check out the all details about takeover home loans in State Bank of India. Documents, Procedure, Eligible, Pre-payment penalty & Top up loan facility.

Whether Home Loan can be taken over from the following Institutions?

Scheduled Commercial Banks (SCBs);

Private and Foreign Banks;

Housing Finance Companies (HFCs) registered with National Housing Bank (NHB);

Borrower’s employers if they are Central/State Govts. or their undertakings or  Public Sector Undertakings,

          YES, subject to the following:-

1. Borrower should satisfy the eligibility criteria for availing Home Loan as per the Banks instructions.
2. The borrower should have serviced interest and/or instalment of the existing loan regularly, as per the original terms of sanction.
3. The borrower has valid documents evidencing the title to the house/flat.

Whether take over with sanction of Higher Loan Amount & extended Repayment Period is possible?

Yes.  Based on the merits of the case and requirements/ eligibility of the borrower, the Bank may sanction an amount higher than the amount taken over from other bank/ financial institution for purposes of renovation/ extension/ furnishings.  Similarly extended repayment period may be sanctioned provided that at all times the criteria regarding maximum permissible finance and security margin under the Bank’s scheme are not diluted.

What is the procedure for Take Over?

1. The borrower should address a letter to the bank/ financial institution from whom he has availed the loan asking them to deliver, immediately upon receipt of the loan amount, the title deeds and other securities, if any, direct to our lending branch;
2. The borrower should give to the branch a request letter for paying to his existing lending bank / financial institution the outstanding amount of his loan by debit to his loan account;
3. The borrower must give  an advice of the actual outstanding (with up-to-date interest) in the loan account from the other bank/ financial institutions;
4. The statement of Account for the entire  period of loan or for the last 10/12 months where the loan has run for a longer period;
5. Confirmation letter from the financing Bank that they have created an equitable mortgage over the property.

What are the documents required for availing the loan?

Disbursal must be effected only subject to the above information being found satisfactory and completion of formalities as regards

(a)  Agreement to create Mortgage,

(b)  Power of Attorney in the favor of the Bank authorizing the Bank to create equitable mortgage on the borrower’s behalf.

(c)  Interim security (Ex: Bank Deposit Receipts, LIC Policies, etc)  and the security obtained in the interim period will be released after receipt of the title deeds then the other Bank and creation of a valid equitable mortgage subsequent to verification of the borrower’s title to the property.

(d)  Required loan documents.

Whether Pre-payment penalty is funded?

Yes.  Total loan quantum, will however, continue to be determined by eligibility criteria based on income, EMI/NMI ratio, LTV ratio etc. applicable to Home Loans scheme.

Whether takeover of Home Loan with Top up loan is permitted?
Yes. Home Loan with top up loan can be taken over subject to Maximum LTV of 75 % and fulfillment of other terms and conditions of takeover. Processing fees for such takeover will be 0.25% of the Consolidated loan amount taken over with subject to minimum of Rs 1000/- and maximum of Rs 10,000/-

Source: State Bank of India