All You Need to Know about Pre-Approved Home Loan

Your home-buying journey begins the moment you start making mental notes about how your dream home would be. There are many stops where your train will halt- comparing different localities and builders, finding the home with right amenities and deciding on the property that meets all your requirements. But what if you go to a bank for getting a home loan for this purchase and the approval process takes forever. You are at the risk of losing the house as the builder might sell it to someone else, if your funding process takes too long. The best way to avoid this situation is to geta pre-approved home loan before stepping out on a home-hunt.

What is a pre-approved home loan?

It is basically an in principle approval for a home loan given by a bank based on your credit profile. A number of banks offer this facility. For example, SBI has rolled out a pre-approved home loan facility under the name SBI PAL. It provides sanction of home loan limit before finalizing the property. The customer will have to meet SBI home loaneligibility criteria and the bank will judge the credit profile based on income and credit history.

What is the procedure of getting a pre-approved home loan?

Banks offer pre-approval on home loans so that the homebuyers can search for their dream home with confidence. Following procedure is adopted by most of the banks for giving out a pre-approved home loan-

·        

 Firstly, you have to apply for a pre-approved home loan with the bank- either offline or online, though the online option is not offered by all banks. At this point, you will also have to submit the required KYC documents and proofs of your income.

·         Based on the furnished documents and your CIBIL score, the bank will ascertain your repayment capacity and decide the amount that can be sanctioned to you.

·         Next, the bank will issue a loan sanction letter to you which will be valid for a definite period of time, in most of the cases it is 4 months or 120 days. Other terms and conditions of the loan will also be mentioned in the letter. The interest rate mentioned in the sanction letter will be decided according to the prevailing market rates and is also subject to change.

·         The bank will also charge a processing fee which will be non-refundable. If you do not take up the offer within the stipulated time, the amount paid as processing fee will be forfeited.

·         Once you select the property (before the specified time period), you will have to submit property documents with the bank. When satisfied with the papers, the loan amount will be disbursed by the bank.

Benefits of Pre-Approved Home Loans

Pre-approved home loan helps you search for your dream home with confidence as you don’t have to worry about the finances. Given below are a few more benefits of pre-approved home loans-

·         Firstly, pre-approval gives you peace of mind and helps in planning your finances. It gives a clear view of how much you can afford and borrow so that you do not have to regret later and toss the decision altogether. If the home loan falls short, you have enough time to arrange funds from other sources to fill the gap.

·         While searching for a house, builders also prefer buyers who already have a home loan at hand. So you will have an edge over other buyers.

·         Since all your documents have been already scrutinized by the bank, loan processing and disbursal will be a quick process, unlike normal home loans.

·         Most of the banks use pre-approved home loans as a promotional measure; therefore, you have a higher chance of getting discounted rates.

Conclusion

Pre-approved home loans definitely bring a certainty in your home-buying journey. However, issues like definite validity period, risk of losing the processing fee, etc. might leave you in a muddle. It is advised to shortlist a few properties and evaluate your personal finances and then apply for a pre-approved home loan. This will give you a clear view of the amount you can borrow from the bank and at the same time you will able to choose the right property from the shortlisted ones, well within the validity period.

SBI Bank Home Loan

Home Sweet home , which is closer to the heart, which everyone wants to possess and decorate with inspirational ideas which can be duplexes, mansions & apartments alike , this dream will come true by SBI Home Loan.

SBI offers several loan products to unleash this dream. SBI has got many awards in the survey conducted by various research agencies, this is the result of best guidelines, ethics, and ideas that have proven from many years of the experience in delighting the customer.

SBI Home Loan have an edge of the below points;-

• Low Processing Fees.
• Stack of exclusive benefits.
• Lower interest rates , with added advantage of daily reducing balance.
• No Hidden cost or administrative cost.
• The convenience of paying the excess amount of the loan, this reduces the interest payment for all these pre-payments there are no penalties.
• Branches spread over the country to cater to the needy people.
• Home loan also available as an overdraft. To Optimally utilize the surplus funds.

Criteria for availing the SBI Home Loans:-

1. The applicant should be 18 years for salaried class and 21 years for the business class, up to 70 years.
2. Salaried or Self Employed with regular source of Income.
3. All appropriate documentation like Form 16 , Salary slip , 3 months Bank Statement for the salaried class and Filled ITR or Form 16 and 6 months Bank Statement for the self employed are the minimum documents required for processing the SBI bank Home Loan.

The foremost step involved in buying the property is locating the property with all the correct property documentation & after the docs are verified thoroughly from your side check your eligibility that matches the lender’s criteria.

Eligibility Criteria for availing SBI Bank Home Loan :

• Applicants should be between 18 years to 70 years , 21 yrs for the Self Employed.
• Minimum Income should be Rs.1,20,000 p.a for salaried and Rs. 2,00,000 for salaried persons.
• Home Loan tenure is one of the vital factor in deciding the home loan process, SBI helps its clientele in selecting the tenure up to 30 years (or) Up to the age of 70 years whichever is lower for the repayment period.
• Loan eligibility depends on the age of the borrower. Younger people will have more eligibility amount and loan eligibility can be increased by adding spouse as co-applicant.
• SBI offers up to 90% of the value of property, depending upon the other eligibility criteria.

SBI Home Loan EMI Calculator.

SBI Home Loan EMI calculator helps in calculating the approximate EMI for the Home loan for a particular loan amount and interest rate, along with the tenure .

EMI is calculated per lac of loan, which is augmented with the loan amount.

SBI Home Loan Calculator gives good idea about the EMI charge on the applicant for each month to plan the funds before deciding on the Home Loan.

SBI Home Loan Calculator takes into consideration , loan amount , tenure of the loan and interest rate, which is floating/ fixed to calculate the estimated EMI. This makes it very easy yardstick to get the info.

Below are the glimpse of the SBI Home Loan Calculation.

SBI Home Loan Per Lakh EMI Calculation on Yearly Basis

Interest Rates	Loan Tenure	Lowest EMI Per Lakh
9.10% – 9.30%	30 Years	Rs.822.68 – Rs.826.30
9.10% – 9.30%	25 Years	Rs.856.38 – Rs.859.83
9.10% – 9.30%	20 Years	Rs.915.87 – Rs.919.11
9.10% – 9.30%	15 Years	Rs.1029.19 – Rs.1032.19
9.10% – 9.30%	10 Years	Rs.1280.33 – Rs.1283.05
9.10% – 9.30%	5 Years	Rs.2087.99 – Rs.2090.43

SBI Home Loan EMI Calculator is very low and at a competitive amount per lac of loan.

Which is Rs. 815/- for Men and Rs.812/- for Women.

There are some preferential points for the SBI Bank Loan.

1. SBI Processing fees charges are very low in the India.
2. 0% Processing Fee on SBI approved projects till 31st December, 2016.
3. 0% Processing Fee for takeover of Home Loan proposals till 31st December, 2016.
4. Presently we have SBI Home Loan Festival till 31.12.2016 which started in early November. This offer saves borrowers to save Rs.21.98 per lac /month and eventually Rs.158,256 for a tenure of 30 years. Which only premier bank like SBI can offer to its customers.
5. Moratorium Period /Re-payment Holiday which is another aspect which has an edge in deciding the Home loan. SBI Home Loans comes with Moratorium period options.
6. Borrowers are eligible for the Tax benefits on the interest and principal component of the EMI under the Income TaX Act of 1961.
7. SBI Home Loan interest rates are modified according the Repo-rates of the RBI.
8. SBI comes up with various Home Loan products considering the latest trends in the economy , financial market coupled with the policies of the Government.

Below are the SBI Home Loan products at a glance.

1. SBI Flexipay Home Loan.
2. SBI Maxgain.
3. SBI Hope Loan.
4. NRI Home Loans.
5. SBI Realty.
6. SBI PAL
7. SBI Tribal Plus.
8. Gram Niwas.
9. Sahyog Niwas.
10. SBI Privilage Home Loan.
11. SBI Shaurya Home Loan.
12. SBI Top Up Home Loan
13. SBI Reverse Mortgage Loan.

The above products of the SBI caters in all the sections of the society.which is rare in the banking sector in our country.

In recent times, with more and more Indians go out of the country to pursue their professional desire, NRI Home loans are very frequently opted. With minimum employment tenure in India and abroad for 2 years, with no maximum amount of limit for the loan to opt. This scheme covers a large chunk of NRI, who want to have a dream home in their home town.

SBI Top up Home Loan , is also extensively used product of the SBI Home Loan. In this scheme borrower who has the pleasing track record are extended to the top up loan to meet the additional fund requirements up to Rs. 5,00,000/- with slighter processing fees.

What is the difference between ICICI bank home loan and SBI home loan?

SBI bank and ICICI bank are the two most popular banks and reputed names in the country. However, SBI or State Bank of India is one of the oldest banks in India, while ICICI is a newly established bank. The most intriguing part of SBI bank is that its history traces back to British India. Finally, in 1955, India saw the dawn of a new name, the Imperial Bank of India which gradually became the State Bank of India. 

If you are seeking home loan, then you have the country’s best two banks, the SBI and ICICI. If you are confused which bank to choose, then this article will help you. Selecting between the two banks is like picking the best flower better than other beautiful flowers.  

Difference between SBI and ICICI home loan 

Both SBI and ICICI are good lenders, but comparatively SBI is touted excellent when it comes to reducing and lucrative rates. Besides, service of the bank is extraordinary. The only thing is that you will have to look out for sanction personally and even disbursement which may be time consuming. Therefore, it can be concluded that the SBI home loan interest rate is not taxing on your pockets. Also, to apply for an SBI loan you will have to provide all your documents. 

ICICI bank is also one of the best home loan lenders. Its home loan processing service is prompt. Also, you can avail services of customer care all round the clock. 

Let’s have a look at the difference between ICICI and SBI home loan interest rate 

 • The interest rate for women applying SBI home loan interest rate is 9.10% to 9.25%. For general customers, the SBI home loan interest rate is 9.15% to 9.30%. The SBI Flexipay interest rate 9.25% to 9.30%. 

On the other hand, the interest rate for ICICI bank home loan is 9.20% to 9.50% for general borrowers and 9.15% to 9.45% for women borrowers. 

 • If you are applying for SBI home loan, the processing fees is up to 0.35% of the loan amount and the maximum processing fees is Rs. 11,500. If you want to apply for ICICI home loan, then the processing fees is 0.50% of the loan amount or it may be Rs. 11,500 whichever is lower. 

 • For both the loans no guarantor is required. 

Remember, SBI issues a great range of home loans and the SBI home loan interest rate is suitable for the borrower. According to various consumer awards and surveys have bestowed the title ‘The most preferred Home Loan Provider’. Besides, SBI provides loan at lower interest rate, zero hidden charges, flexible payment options. The SBI home loan interest rate is offered at a lower competitive rate. 

Coming to ICICI bank home loans, these types of home loans are easy to apply for various reasons. Suppose, you want to buy a new house then you can apply for loan from the bank (which you already know) or from your bank’s approved projects. The company offers pre-approved loans to only a selected group of customers including existing customers.  

 

What are the different types of SBI and ICICI home loans?  

They include SBI MaxGain Home loan, SBI Yuva home loan, SBI realty, Her Ghar Home loan, etc. ICICI home loan interest rates vary for salaried applicants, self employed applicants, women applicants, weaker section applicants, etc. 

Also, ICICI offers you the advantage of lowering the weight of EMIs to its customers. Thus, you can gain all the benefits of home loans if you are eligible for the same. However, do research for SBI home loan interest rate and ICICI home loan interest rate , and then make your choice. Choose wisely the one, whether SBI home loan interest rate or ICICI home loan interest rate, that will help you meet the kinds of requirements you have on mind.