SBI Home Loan Process – Step by Step

Searching for the best home loan is as important as searching for a dream home. You might find the best home loan lender, but the process involves many steps. You have to be patient and careful while dealing with the process. Though applying online has become very easy, reaching the disbursal stage is no cake-walk. If you had chosen a nationalized bank, you have to be even more careful in following each and every step.

Here is the step by step procedure for your SBI home loan disbursal.

  • Collecting the Property related Documents
  • Legal Opinion
  • Property Valuation
  • E-stamping
  • Submitting the Application
  • Documentation
  • Disbursement

1.Collecting the Property Related Documents:  Firstly, go to the builder and get all  the property related legal documents. Get the Legal opinion and Share of agreement and Sanctioned Site plan from the builder.

Collect : Booking Receipt along with the copy of the cheque.

2.Legal Opinion: Go to an Advocate who is in the SBI Panel with the documents in step 1 to get it verified. For the advocate to give the final legal opinion he needs to see the Sales Agreement & Construction Agreement and he needs a photostat copy of it.

Normally if its a builder share following documents need to be collected from the builder :

a. Encumbrance certificate till current date (from some 35 years advocate may ask)

b. Tax Paid receipt till date. Lawyer might ask you for multiple documents, so the maximum delay is expected at this step. Once this step is done, half part is done.

Collect : Legal opinion

3. Property Valuation: Once the Legal valuation is done, go to a property Valuator who is in the SBI Panel with the sales agreement. He valuates the property and gives a letter.

Collect : Valuator statement

4. E-stamping: SBI mandatess the Sales agreement and Construction agreement to be estamped/Franked.  Regarding whats the value to which e-stamp, do concern the branch staff. Normally for a ongoing construction flat, there are 2 Agreements a)sales Agreement and b) Construction Agreement. E-stamping and franking are actually the same, e-stamping is the new technology where as franking is the old one where we stamp it, Franking can be done only at register office where as e-stamping can be done at post offices, Syndicate banks, Selected registrar offices, etc.

Note: Make sure you, your wife and builder sign on the e-stamp which you purchase.

Collect : e-stamp and franking on the sales agreement

5. Submitting the Application: Once you get the valuator statement and Legal opinion, go to the SBI with the filled in application forms along with the required documents for loan application. Also attach the legal opinion and the Valuatorstatement.

Note: Its always good to go for a interiors loan (max up to 3 lakhs) along with the home loan, which might save you the hidden chargeswhen combined. For the interiors loan you need to get a quote from an interior designer and get it valuator sanctioned.

Collect : Application form Valuator Statement


6. Waiting period: Now its time for the waiting period. The waiting period may vary from person to person. Normally in the special home loan branch, it can be as fast as 3 days. Periodically call them to ensure that the process is going forward. Also make sure they inspect the property, because unless and until they inspect, you can’t reach the disbursal stage.

7. Documentation: Once the loan is sanctioned, you get a call from the bank for documentation. Carry all the original documents which you have submitted while applying for the loan.

Loan applicant along with guarantor needs to be present at the bank for the documentation. Builder is normally not required, if its a land lord share, then it is a must for him too to attend.

8. Disbursement: Once we get the Loan Sanction letter go to the builder and get the following documents 1. NOC from the builder stating he hasn’t mortgaged this property to any other bank 2. Tripartite agreement [This is required only if its a ongoing construction.3. Demand Note from the builder[how much money he needs for the particular construction stage]. Note: Please make sure whatever demand note they make is matching with the schedule of payment.

Collect : DD in favor of builders

9. If it is an under-construction property, for partial disbursements and for further payments you can just send a mail to the manager to please disburse the amount XXX and then ask the builder to send a boy to the SBI branch with the original demand note and they can collect the DD from the bank directly. You need not go to bank anymore.

10. Registration : Now its time for registration and the final payment to be made to the builder. You need a DD for Registartion Stamp duty in the name of Sub-registrar and a DD for Mortgage Stamp duty in the name of Sub-registrar

Conclusion. Send an SBI Postal mail form after registration saying you had submitted all the registered documents to SBI.

How Can Loanyantra Help You.

The above process needs a lot of care and patience. More than anything, it needs your valuable time, planning and energy. Once you register with loanyantra, you can relax and fulfill your loan disbursal process. Our relationship manager guides you in each and every step, also assisted home service for all your documents that need to be submitted in the bank. Also, loanyantra’s relationship manager is accessible to you to answer your questionnaire , anytime. All you need to do is just login, as it doesn’t cost you but it only helps you.

Frustrated with Your Home Loan Lender? Here is the Solution for Best Bank for Loan

Answer these questions and think of a solution for the best bank for your requirement.

How many of you are frustrated with your home loan lender? Either for a loan disbursal or for a balance transfer or the most important for the higher interest rate changes!!

new home laon, balance transfer, or any loan, get the best product via loanyantra
Frustrated with your lender? Your lender doesn’t reduce your loan interest rates? Chill out…Loanyantra is the solution.

How many times do you postpone going to a bank for a balance transfer and doesn’t go because you didn’t research which bank is giving lowest interest rate or which bank charges less on the balance transfer?

How many office hours do you spend to visit the bank on your home loan work?

How many of you didn’t research before taking a home loan and now taking the pain?

How many of you dream of closing the home loan fast but don’t know how and when?

Do you know, 50% of the people in India use banking portals. Out of which 40% use them for research. 18% of the time is spent on searching for the best banks while on internet.

The one-stop solution for all these is
Visit the website and fill the details. Get a solution to all these questions. Truly a reliable, economical, one-stop solution.

Renting or Buying a House

Renting or Buying a home – Should you stop renting and buy a home? What are the costs involved? Calculate the hidden costs for renting or buying.

If you’re ready for the commitment, you bet!

Yes. Buying a home is a big decision. A big commitment, too. But if you think renting vs buying a home thoroughly, clearly understand your financial situation, and you’re ready for the short- and long-term responsibilities, it can be one of the most rewarding decisions you’ll ever make. Once you decide on renting or buying a home in India, Loanyantra helps in building the bridge between you and your dream home.

Rent or buy a house costs calculation and which is better
Costs involved in renting or buying a house in India
Renting vs Buying – Why buying a home is a good idea.

Build equity: 
Every EMI payment you make is part interest and part principal. The principal is what you owe on the loan and it goes directly towards your home’s equity. It’s like investing in yourself. Which is a lot better than 100% of your rent payment going to the landlord. Plus, whenever home values (land price) increase (and historically they do) so does the value of your home.

Tax advantages: 
The interest portion of your monthly payment is like any other interest. It’s the fee you pay for borrowing the money. However, the great thing about home loan interest is it’s tax deductible. And so are your property taxes.*

Loan options: 
There are different types of loans to choose from. So depending on your financial situation, and long and short term plans, you can apply for a home loan that will fit your needs.

Live your way: 
Do you feel comfortable in a sparse, minimalistic space design? Or do you like different colored walls and pictures everywhere? As a homeowner, you’re free to live, decorate and change your home however you want. Rented houses’ owners do not allow the walls to be drilled or make the way comfortable for you.

What the experts say on renting or buying a house in India.

Many experts in the real estate market believe it makes good financial sense to buy your home rather than rent. Experts predicted that rents for apartments would increase year on year nationally – by average 8% in 2014-2015 – by 7.5% each year in 2015 and 2016. Though due to demonetisation in India, the residential rental value remained same in some areas for an year, now there is again a steep increase and rents will continue to increase year on year.

If the average national home loan interest rate hovered around 10,5% (they’re much lower today), home ownership may well be a better investment of your money, especially if you plan to stay in the home for at least five years. Experts estimate that buying will be cheaper than renting until the 30-year fixed rate reaches 12%, more than what it is currently!

 Important homeowner costs to consider.

Down payment: 
Different loans require different amounts. The RBI allows LTV (Loan to Value) of
90% for home loans up to INR 30 Lacs
80% for loans between INR 30 and INR 75 Lacs
75% for loans beyond INR 75 Lacs.

While deciding on renting or buying, down payment calculation is a must. Decide on your budget, calculate your savings, keep it ready for down payment.

Property insurance  or home insurance is recommended, once you get into your home. Flood or other types of coverage may also be required.

Now, in India, home loan insurance is made mandatory. Insurance on home loan supports your family in any unforeseen event by paying the outstanding loan amount. The home loan insurance offered by the loan cover will progressively come down as the home loan gets repaid. For instance, by the 10th year, if the loan cover would have been to be Rs 13.5 lakh. By the 14th year, it would have been reduced to about Rs 3.5 lakh. 

Property taxes: 
Varies widely. Determined by local city or state government. The fact that the local municipal authority is the force behind the property tax being levied must tell you a lot about how the money you pay goes to towards the maintenance of the basic civic services in your city. The property tax in India is only charged on the real estate building and not on the plots of land, which don’t have any establishment in its vicinity.

Maintenance and home improvement: 
From a leaky faucet to new paints, you don’t have to fix everything yourself, but paying for and getting it done is your responsibility. Maintenance charges to the society need to be paid which you pay even when you stay for rent in a house. But for the next five to ten years, you need not worry about the shifting or transportation charges,  home improvement costs and repair costs if you had used average quality for the first time.

But over the time, you have to be responsible for your sweet home for making it look good and neat. You can also do a makeover whenever needed with the home improvement ideas and facilities in the market by top-up loan or home improvement loan. Once you are a loanyantra customer, loanyantra helps you in getting the best interest rate in the market at a discounted price.

Why you should stay for Rent? Reasons to keep renting for now.

Sometimes, due to your personal situation and long term plans, renting is currently a better option.

  • You anticipate a change in employment or income in the near future.
  • You’re not comfortable making a long-term commitment to a particular location or area.
  • You need to build a stronger credit history.
  • You’re not prepared to handle responsibilities like leaky faucets, paint and other routine maintenance.
  • You’re not financially ready to cover monthly and yearly costs for utilities, insurance and taxes.

Rent if – You are currently prioritizing other financial goals above homeownership. Buy if – Homeownership is your primary financial goal, and you are both aware of and comfortable with how the cost will affect your progress towards your other goals.

*Everyone’s tax situation is different. Please consult a professional tax advisor.
** This summary is based on a Rs-30,00,000 home loan amount, loan term of 240 months and an interest rate of 10%.
Loanyantra offers the best interest rate ever in the market. Know more and save more.

Ask yourself – 5 Questions about Home Loan Insurance.

Q1. What is home loan insurance? Is home loan insurance and house insurance same?

Home Loan insurance or insurance on home loan supports your family in any unforeseen event by paying the outstanding loan amount. Home loan insurance is an insurance term plan provided on your home loan amount for the same tenure like your home loan. Now in India, home loan insurance is made compulsory by all the lenders while opting for the home loan. Team Loanyantra can suggest you the loan products with low home loan interest rate as well as  home loan insurance low premium products.

Before that we should know that house insurance is totally different from home loan insurance. With regard to home loan insurance, you get the home loan insured whereas with house insurance, you get the structure of the house and the contents of the house insured.

Q2. How does Home loan insurance work? Will the home loan insurance cover reduces over the home loan tenure?

“A loan insurance plan covers the balance to be paid in case of the borrower’s death as per the loan schedule decided at the time of taking the policy,” says Rituraj Bhattacharya of Bajaj Allianz Life Insurance.

The home loan insurance offered by the loan cover will progressively come down as the home loan gets repaid. For instance, by the 10th year, if the loan cover would have been to be Rs 13.5 lakh. By the 14th year, it would have been reduced to about Rs 3.5 lakh.

Q3. How to pay the home loan insurance premium ?

To calculate the home loan insurance premium, primarily, the home loan interest rate is taken into account. A few companies or financial lenders also have a different rate for metropolitan and non-metro areas.

The other factors considered are, the age and medical record of the policy holder, the loan amount and the repayment period. The larger the loan amount or the repayment period, the higher the premium.

The home loan insurance premium payment can be paid at once or annually. You can either choose, 3,4,5,7 or 10 year, not exceeding 2/3rd of the loan term. For example, if you have to pay a premium of Rs.50,000 and choose to pay annually,  the bank includes that premium into your loan amount and calculates the EMI. So be wise and diversify your funds.

home loan insurance _loanyantra

Q4. What are the tax benefits while paying the home loan insurance premium ?

Only, if the premium is paid by you, and not by the lender, you are eligible for tax deduction under Section 80C and Section 10(10D).

If it has been paid by the lender and is part of the loan which you will repay through EMIs, it will not be possible to claim deduction.

Infact, the tax benefit is very negligible. The tax limit is Rs. 1,50,000. So, when you choose to pay annually, the premium is spread across your tenure which is added in your EMI. Understand that you don’t lose much.

Q5. What are the other options to insure your home loan? 

Usually home loan insurance is compared with insurance term plans. The main advantage with term plans is they cover other financial needs along with the home loan. However, whether you opt for a home loan insurance or choose any other term insurance plan, the premium is calculated accordingly, which can be higher for higher cover.

But now in India, it is mandatory to opt for the insurance for any loan you take. So, you can only opt whether you pay the premium directly or pay the premium through EMIs. 

NOTE :  Why should you opt for Home loan insurance?

The solution lies with you. But, the best advantage with home loan insurance is, incase of unexpected happening to the borrower, the insurers go to the bank directly to close the loan. The family need not go around the banks or insurance companies. So, for those whose family does not have much exposure about these financial matters, it is a good decision by the lenders to make it mandatory. So, plan smart and choose the best fit.

Home insurance – Know about it in detail!

A small girl asked her teacher the difference between a house and a home. The teacher made her understand – A house is made of walls and bricks. And if that house is filled with love, care and warmth, it is called a home.

A mom always thinks of making the relations special by making great memories. A dad supports her ideas by providing everything needed. Whether it is a nice couch to be a couch potato and enjoy the leisure time, or a PC table to finish the work, or a well furnished kitchen and rooms to keep things tidy. If there is an incident that might cause loss of house, what will you be left with?

No doubt the memories spent in that house remain in the heart. But, to make more of such memories in another house, opt for a house insurance. Loss of house and the content in the house should open doors to afford another one.

Householder’s Insurance Policy or home insurance is specially designed to meet the insurance requirements of a householder by combining, under a single policy, a number of standard policies usually taken by householders.

Who should buy Home Insurance /Eligibility Check  For Home Insurance

Irrespective of the fact that whether you are a tenant or an owner, buying home insurance should be your top priority.

  • Owners of the house can insure home and contents of the home.
  • Tenants of the house can insure contents of the house.
  • Authorized Member of the apartment or association society to insure common areas and utilities of the area.
Types of Home Insurance

Home insurance can be taken for different purposes.

  1. For House alone.
  2. For Contents in the House (Like furniture, electronics)
  3. For house as well as contents of the house.
home insurance
Home Insurance – Customize your plan by insuring your home, the structure, as well as contents of the home

But before you go for insurance of any content in your house or for your house itself, all you need to do is just check the warranty and guarantee of the product. Also, know the depreciation value of your house before you choose a house insurance policy.

Inclusions in Home Insurance
  • Aircraft damage
  • Fire
  • Lightning
  • Riot, strike
  • Storm, cyclone, flood
  • Missile testing operations
  • Fire and perils cover
  • Earthquake Cover

The policy offers coverage against loss or damage to any of the insured property. However, many policies do not cover flood or overflow of the sea, rivers and lakes, due to earthquake.

  • Burglary and Theft Cover

The contents of home are also covered against burglary or theft. The coverage will also be extended to silver articles, jewellery, precious stones and other valuable items, provided these are kept in a locked safe within your home premises.

Additional coverage available in home insurance policies

Regardless of the type of ownership, you can specifically cover your precious household items under a home insurance package policy. Here is a breakdown of the things that you can include under the coverage.

Plate Glass(Fixed)

The glass and sanitary equipment which are fixed in particular places inside the home. However, the plan doesn’t cover movable glass equipment.

Home Entertainment (TV/Music System)

Home entertainment equipment like television and its accessories, cable or digital or /satellite television receiver, Video equipment etc.

Personal Computer –

The coverage is for mechanical and electrical gadgets and appliances that belong to you or your family members and up to 7 years in age. Expenses for damages of these gadgets is covered if the damage occurs inside your home due to mechanical or electrical breakdown.

Pedal Cycles

The wide range of additional coverage further includes pedal cycle owned by you or any member of your family along with the accessories of the cycle that has been permanently fixed.


If your baggage is damaged due to accident during a journey, your expenses will be covered under a home package policy.

Personal Accident

This coverage encompasses both temporary and permanent disabilities. People those who stay indoors and affected by accident will only be covered.

Coverage for ‘All Risks’

Apart from these specific items, you can further insure your expensive belongings. In that case you have to submit the valuations of the items you want to insure. You can ask for coverage for jewelry, clocks, watches, furs, photographic equipment like camera and their accessories, musical instruments and sports equipment and their accessories.

Exclusions in Home Insurance

It is always recommended to go through the big list of documents before signing for any agreement or paying the home insurance premium.

But usual exclusions are –

  • Intended damage to the contents in house or to the house.
  • Pre damaged products or pre damaged structure of the house or existing damage to the structure of the house.
  • Manufacturing defects of the contents of the house.
Calculate the home insurance premium / Present scenario of home insurance in India

A home insurance plan, usually, covers the costs for rebuilding the structure, not the value of the property. Reconstruction costs do vary and for a no-frills structure the cost is around Rs 1,800 per square foot. It will cost around Rs 3,500 per square foot for a better construction. If you possess a 2,000 square foot residence you can insure your house for Rs 35-70 lakh. In that case, you have to pay Rs 2,100-4,200 for premium each year. You can reduce the cost by opting for a long-term policy with the tenure of 10 years. But you cannot predict the cost of construction, also most likely the expenses will rise after 10 years.

Tenure of Home Insurance

Home insurance policy usually known as term insurance policy also can be opted for short term or long term. Pay for one year and  can choose to renew every year and pay for multi-year which will reduce the premium amount. Choose the best-fit.

How to Lower Your Home insurance Premium?

There are many such things in our house which are precious to us but there is no point in insuring them if they are too old. The depreciation is to be considered.

Also, if you are setting up a house, you will surely have guarantee for all the things. It is advisable to take insurance after the guarantee expires. So be clever while taking the policy.

How to File for a Home Insurance Claim?

Almost every insurance company is having its own deadline within which you have to inform about your loss. These can vary between 7-15 days so make sure you do it as soon as possible. Some companies even let you do with an email or SMS. Before you file for a claim, you will have to lodge an FIR and the copy of which you need to submit with insurance company.

Tips for Choosing a Home Insurance in India

There are various home insurance providers in India that offer different plans as per individual needs.

  • Check premium and coverage : Firstly, evaluate risks which your home is facing or might face in  future. For example, if you live in a flood prone area then you should ensure that your home insurance policy is covering these risks also. Also, while checking coverage, it is prudent to check if the premium fits within your budget or not. You can solicit premium quotes of individual insurers or use comparison chart to compare premium quotes.
  • Check claim settlement ratio : A good company is judged by the turnaround time of settling claims. The very purpose of insurance will be defeated if you do not get a claim when it is required. So, it is worthwhile to check the claim settlement record of companies before zeroing in on one insurer.
  • Look at company’s reputation : The first and foremost characteristics of a good company is that it has customer friendly staff. Does your insurance company have competent customer service representatives who are capable enough to resolve your queries quickly? It is always important to choose a company who is well equipped to assist you at any point of time.

There is no denying of the fact that house insurance is a must, however, there are other benefits and riders to buying such a policy that will add convince you totally. Don’t wait for a calamity to remind you the need of buying a home insurance, opt for it beforehand!