WELCOME to SBI Home Loans

Thanks for showing interest in availing Home Loans from State Bank of India.
STATE BANK OF INDIA IS "THE MOST PREFERRED HOME LOAN PROVIDER" voted in AWAAZ Consumer Awards along with the MOST PREFERRED BANK AWARD in a survey conducted by TV 18 in association with AC Nielsen-ORG Marg in 21 cities across India.

SBI HOME LOANS now offers Interest Rates concessions on GREEN HOMES in accordance with SBI's commitment to Environment protection. SBI Home Loans come to you on the solid foundation of trust and transparency built in the tradition of State Bank of India. SBI Home Loans Unique Advantage
Package of exclusive benefits [including Maxgain Overdraft facility]. Lowest interest rates. Further, we charge interest on a daily reducing balance!! Low processing charges; No hidden costs or administrative charges. No prepayment penalties. Reduce your interest burden and optimally utilize your surplus funds by prepaying the loan. Over 12000 branches nationwide, you can get your Home Loan account parked at a branch nearest to your present or proposed residence.

Interest Concession of 0.25% available on the above card rates upto 31.10.2011 for all types of New Home Loans
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HOME LOAN IS NO MORE A BURDEN

Eligibility
Interest Rate
Present Base Rate 10.00%

All Home Loans including takeovers from other Banks and where applications are submitted on or after 13.08.2011

Loan Amount
Floating Rate for the entire tenure

Upto Rs.30 lacs 0.75% above Base Rate,

current effective

> 30 lacs & upto 75 lacs

Above 75 lacs 1.25% above Base Rate,

current effective

Maxgain facility
available upto Rs.1 crore for all new loans Option to be choosen at the time of applying for the Home Loan itself.

1.00% above Base Rate,

current effective

10.75% p.a 11.00% p.a 11.25% p.a

@ Concessions in interest, if any, will be made available at the time of sanction only and as per conditions applicable for such a concessions..

Repayment schedule

As per EMI schedule applicable for the respective brackets.

No Pre-payment / Pre-closure / Part-payment penalty for all loans sanctioned on or after 01.05.2011.
0.25% of the loan amount Rs.10000/Rs.20000/-

Eligible Loan Amount Loan eligibility based on EMI / NMI ratio with the present Base Rate.
Loans upto Rs.25 lacs Above Rs.25 lacs & upto Rs.75 lacs Above Rs.75 lacs

Processing fees

GOOD NEWS!!! Processing fees needs to be paid only after sanction of the loan and at the time of documentation.

CRE Home Loans: (a) If the applicant already owns two or more houses singly or jointly; (b) If the 50% or more of
the present EMI is from rent; (c) In case of Multi Dwelling Units. Then interest rate will be increased by another 0.25% - Maxgain facility not available for these categories of HLs.

Interest Concession of 0.25% available on the above card rates upto 31.10.2011 for all types of New Home Loans
HURRY UP! HURRY UP!! HURRY UP!!!
For further details, please contact:

www.sbi.co.in

www.statebankofindia.com

www.sbi-life.co.in

www.sbimf.com

SBI - HOME LOANS Best Home Loan Provider in India (as per NDTV Profit)
o Eligibility: w.e.f 13.08.2011 Individual(s) of 18 yrs and above with steady source of income.
Positive Credit History in the CIBIL records; Minimum Score in SBI Scoring Model & Max Loan under SBI Reality is Rs.10 Crore.

o Minimum Service

2 years To purchase an existing (old) house / flat To repair / renovate an existing house / flat

o Purpose: To purchase / construct a new house / flat To extend an existing house To purchase site for construction

o Additional interest rebates : Salary account with SBI 0.10 %

o LOAN TO VALUE & MARGIN REQUIREMENTS:

SBI Home Loan LOAN TO VALUE RATIO

Loan upto Rs.20 lacs Loan above Rs.20 lacs

90% 80%
Under construction Ready for possession

SBI Realty For purchase of plot LTV Ratio 80% MARGINS

Loan upto Rs.75 lacs
> Rs. 75 lacs & < = Rs.1 Cr

20% 25%
25% for Loan of Rs.1 Cr, plus 50% for loan in excess of Rs.1 Cr *

MARGINS
Loan Amount
Upto Rs.75 lacs Above Rs.75 lacs 20% 25% 15% 15%

> Rs. 1 Crore

*e.g. if loan amount is Rs.1.6 Cr then margin will be [Rs.25 Lac + (1.6 Cr-1 Cr)*50%]=Rs.55 Lac i.e. 34.40%. Discretionary power to reduce margin, if used, will be restricted to loan portion upto Rs.1 Cr only. Margin for loan portion in excess of Rs.1 Cr, will be 50%. Margin concession sanctioned under discretionary powers will not be applicable to 50% margin for loan portion in excess of Rs.1 Cr.

o Subject to EMI/NMI requirement of:*

Net Annual Income <=Rs.60000/> Rs.60000 & <=Rs.1.20 lacs > Rs.1.20 lacs & <=Rs.2 lacs > Rs.2.00 lacs & <=Rs.5 lacs > Rs.5.00 lacs & <=Rs.10 lacs > Rs.10 lacs
Normal Housing SBI Reality

20% 25% 30% 50% 55% 65%

30% 30% 30% 40% 45% 50%

Regular income from all sources including performance linked incentives, bonus etc. can be considered, in whole or in part, on the basis of the average of the last two years, to arrive at the total eligible loan amount, provided the sanctioning authority is satisfied about the continuity of the income. However, reimbursement of expenditure shall not be considered as income even though it may be reflected in the salary slip.

Other fees / Stamp Duty: Legal fees Rs.1500.00, Valuation fee Rs.1500.00 [In case of take over of loan, two valuation needs to be arranged] Equitable Mortgage Stamp Duty as per State Government Gazette Notification. If the loan amount is more than or equal to Rs.25 lacs, charges towards registration of banks charge with the Sub-Registrar for the property [Max Rs.10000/-]. Stamp papers for execution of loan documents after the sanction.
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o Other conditions:
Housing Loan will be granted only in whose names the property stands. Construction should be as per the plan approval. Only for property with CMC/BDA/BBMP/BMRDA Khata / approval will be considered. Interim Third Party Guarantee of the persons who is good for the loan amount is required for take over of loans from other banks, for purchase of flats under construction / site loans, purchase of property, if the seller has a loan with his bank. Cost of furnishing can also be included for the project in case of purchase of property, subject to 10% of project cost & Maximum of Rs.3.00 lacs for selected customers. Disbursement: Direct to the vendor at the time of registration. For construction / renovation / extension of house / flat disbursement will be made in phases linked to progress of the project. Margin should be met at every stage. Property to be covered with the General Insurance after disbursement of loan for the market value, the applicable premium needs to be borne by the borrower.
o

In case of take over of loans, maximum loan is subject to outstanding with the present banker or 80% of lower of the following; o Original project cost; o If Project cost is not available then lower of the two valuation report to be obtained from the two different empanelled valuer of the bank.

Other special requirements for SBI Realty Scheme:

(i) (a) Independent valuation of the property by two empanelled valuers [lower of the two valuations will be considered for loan assessment]; (b) To obtain two-title search reports from different lawyers one before loan sanction, and one before disbursement of loan; (c) Obtain fresh CIBIL Credit Information Report on the borrower should be obtained before disbursement of loan, in addition to the one obtained as part of loan sanction process for all loans above

Rs.50 Lacs under SBI Realty.

(ii) (ii) Construction to start within 2 years from the date of the loan. Interest rate as applicable to Personal Loan against Mortgage of Immovable Property or 5.25% above the Base Rate, whichever is higher, will be applied if construction of house is not commenced within the maximum stipulated period. The higher interest rate will be charged after the expiry of period stipulated for commencement of construction.

o Documents required in respect of property: CONSTRUCTION PURCHASE OF READY

HOUSE / FLAT

TAKE OVER OF LOANS Copy of sanction letter Copy of Banks letter listing the original documents held by them as security Pre-closure letter from the Bank showing o/s with penalty** Loan account statement from the beginning of the loan Certified copy of all property documents for obtaining legal opinion and valuation reports Latest property tax paid receipt Upto date Encumbrance certificate for 30 yrs from the sub- registrars office Approved Plan & Khata Cert.
Even in case of purchase of property, if the seller has a loan with other Bank then also the documents as applicable for take over is required, except loan a/c statement.

Absolute sale deed Khata extract Latest property tax paid receipt. Encumbrance certificate for 30 yrs from the subregistrars office up to date. Estimate of expenditure on construction from Architect / Engineer to be countersigned by the Banks panel Engineer / Valuer Approved building plan Legal opinion from the Banks advocate on the property title.

Agreement for sale of property [duly stamped] Absolute sale deed Khata extract / CTS extract / ROR Latest property tax paid receipt. Upto date EC for 30 yrs from the subregistrarsoffice. Approved building plan from the local authority / BDA / BBMP Legal opinion from the Banks advocate on the property title. Valuation report from the Banks Valuer / Engineer In case of purchase of property Seller KYC documents needs to be submitted. Seller KYC & NOC, with ID / Address Proof, in case of house / site.

** Pre-closure penalty payable to other bankers can be included in the total project cost.

Following Personal documents are required in respect of all applicant(s) / guarantor(s):

Cheque for the processing fees. 2 Passport size photo ID proof. [PAN Card / Passport / Voter ID / DL [PAN Card compulsory] Address proof [Telephone Bill / HR Letter / Passport]. Income proof: Salary slips for the last three months. Last 6 months Bank statement of salary account [Original]. Last two years IT returns acknowledgement copy along with form 16; for business category 3 years IT returns with Statement of Income & other related documents. Employers Certificate. SB account in any State Bank of India branches in India.

For NRIs, in addition to above; Passport, Visa; Employment Contract & Latest employment Certificate, Employer ID [If
on deputation from India, Indian Salary will be considered for eligibility]

IT return for last 2 years from that country; Overseas address proof. Applicants can give the PoA to their blood relative in India and PoA [as per Banks format] is given, that needs to be stamped & adjudicated in India & PoA holder to stand as guarantor.
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Additional documents required for Businessmen:

Acknowledged copies of three years I.T. returns/ Assessment Orders. Balance Sheets for last three years (Audited Balance Sheet, if annual sales are more than Rs. 45 lacs). Copy of Partnership Deed/Memorandum of Association, as the case may be. Opinion report from the respective Bank, if firm/company has availed any credit facility from any Bank.

Other attractive offer: Free Personal Accidental Insurance Cover for the borrower:
Bank provides free insurance cover against death of the Home Loan borrower due to accident. The insurance cover will not cover partial or total disablement. The insurance cover will be total outstanding principal loan amount including the interest thereof as on the date of accident or Rs.40 lacs whichever is less.

Great News!!! Do you want to command terms with the seller / builder? Then just submit your KYC [Office / Workplace] &

Income Documents and get SBI Home Loan Pre Approved

Limit [PAL] Letter!!!!!

HOW TO GET PAL FOR HOME LOAN [Min
Available

Rs.10 lacs]?

only at the RACPC centres

(a) Submit: a. Duly filled in Application & 2 Passport Size Photograph b. ID Proof & Address Proof for KYC verification of residence. c. Employer Certificate for office verification d. Salary Slips for Latest 3 Months e. Latest 6 Months Bank Account Statement from where salary is drawn f. Latest 2 years IT Return along with Form 16 g. Cheque for the processing fees recovered while issuing PAL [non refundable] (b) The above document needs to be submitted for all the applicants of the loan and also guarantor whose income is considered for Home Loan eligibility. (c) All the owners of the property will be the applicants for the Home Loan, irrespective of their status. (d) Bank will carry out CIBIL / Income [wherever necessary] / Residence / Office verifications. (e) PAL is valid for 2 months from the date of issue. (f) Home Loan will be sanctioned on the basis of PAL only if there is no change in the CIBIL credit report which is perceived to be adding to the risk assessed by the Bank at the time of issuing PAL. (g) Home Loan will be sanctioned against the PAL on satisfactory legal verification, valuation, and inspection. (h) Title Verification and Search Report (TVSR) in respect of the Title Deed submitted by you will be entrusted with the legal experts identified by the Bank. Costs associated with TVSR will be required to be borne by the customer. Value of the property will be assessed by an independent valuation expert identified by the Bank, valuation fees will be required to be borne by the customer.

EMI CHART[Per Rs.100000/-]

LOAN TENURE
Upto Rs.30 lacs > Rs.30 lacs & upto Rs/75 lacs Above Rs.75 lacs 11.00% 10.50% 10.75%

5 Years 10 Years 15 Years 20 Years 25 Years

2150 2162 2175

1350 1364 1378

1106 1121 1137

999 1016 1033

945 963 981

All rates quoted here are under floating rate, which are linked to Base Rate of SBI, which is at present 8.50% as on 01.05.2011

SBI understands better than anybody else:

SBI-Maxgain Home Loans - Gain Maximum through Maxgain
An innovative and customer-friendly product to enable you to earn optimal yield on your savings and minimize interest burden on Home Loans, with no extra cost. The loan is granted as an Overdraft facility with the added flexibility for you to operate your Home Loan Account like your SB or Current Account. The product serves to minimize your interest cost by enabling you to park your surplus funds in SBI-Maxgain (with the benefit to withdraw the surplus funds whenever you require), specially in the wake of low yields from other deposit/ investment avenues.

Minimum Loan Amount: Rs.5 lacs; Maximum is Rs.100 lacs. (Other terms and conditions as applicable to regular Home Loans)
Until full disbursements, credits are not allowed into the account other than regular EMIs / interest.

After full disbursement of the loan and completion of required formalities including creation of equitable mortgage, borrowers will be eligible for issue of chequebook, ATM-Debit Card and Internet Banking facility for operation in the loan account.
This scheme is available only for Salaried Employees.

SBI Yuva Home Loans

Are you falling short of resources for buying the property on account of your income requirements? Dont worry! Relax!! We have a solution!!!

We offer 20% extra, or 1.2 times the loan quantum calculated as per the existing method based on EMI/NMI. Requirements, - for Salaried class from the selected sectors; Age >=21 years & <=35 years, in case of couples <=40 years with certain conditions. Min NMI Rs.50000/-, excluding rental income. Loan Term upto 300 months. Repayment First 36 months only interest needs to be paid on the loan disbursed and later for remaining months Normal EMI. Other Benefits: Festival Loan (Demand Loan) equivalent to 3 months NMI and repayable within 36 months will be made available. Sanctioned as regular Term Loan [No Maxgain is available here].

How to find out the Maximum Home Loan Eligibility [shown with a example]
Mr X aged 34 years, working in a MNC is earning Rs.70000/- as Gross Salary and his Net Monthly Income post tax is Rs.56000/-. He has availed a Car Loan and the monthly instalment is Rs.5500/- and remaining period is 12 months. He would like to know his maximum loan eligibility with 240 months instalment to plan for his dream home. Can we help him? Details collected Age 34 years Net Monthly Income Existing Loan instalment Repayment period

Rs.56000/Rs.5500/240 months

Method of Calculation Net Monthly Income Net Annual Income Existing Loan Instalment EMI/NMI allowed for NAI of Rs.6.72 lacs His aggregate all EMI can go upto Since his existing Car Loan EMI is available, Residual amount left for meeting his proposed loan He needs loan for 240 months and EMI applicable for 240 months per lac loan [For upto Rs.30 lacs loan] is @10.50% pa Rs.999/Maximum Loan Eligible to Mr X is = (Rs.25300 / Rs.999) x Rs.100000 - under regular Scheme = Rs.25.32 lacs/-* Rs.56000/Rs.672000/Rs.5500/55% of NMI Rs.30800/-

Rs.25300/-[30800-5500]

If the car loan is closed he will be eligible for more loan. * Again this is subject to 80% of project cost.

Note: SBI Realty for purchase of site is available for a maximum period of 180 months only and the house needs to be constructed within 2 years from the date of purchase.

Compiled by K Kesavan, Branch Manager, SBI, RBI Layout Branch, Bangalore Mobile 9449866623 / email : sbi.04408@sbi.co.in

INCOME TAX & HOME LOAN

Source: http://www.indianground.com/home_loans/homeloans_tax_benefits.aspx

Customers availing of Home Loans can claim a certain portion of the interest and principal that they pay towards the loan installments for reducing tax liability. Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Moreover, an added tax benefits under Sec 80 C on repayment of principal amount up to Rs.1,00,000 p.a. can be availed that can further reduce your tax liability by about Rs. 30,000 p.a. Tax benefits can be claimed on both the principal and interest components of the home loan as per the Income Tax Act, 1961. These deductions are available to assesses, who have taken a loan to either buy or build a house, under Section 24(b). Interest on borrowed capital is deductible up to Rs 150,000 if the following conditions are satisfied:

Capital is borrowed on or after April 1, 1999 for acquiring or constructing a property. The acquisition/construction should be completed within 3 years from the end of the financial year in which capital was borrowed. The person, extending the loan, certifies that such interest is payable in respect of the amount advanced for acquisition or construction of the house A loan for refinance of the principle amount outstanding under an earlier loan taken for such acquisition or construction.

If the conditions stated above are not fulfilled, then the interest on borrowed capital is deductible up to Rs.30,000 though the following conditions have to be satisfied:

Capital is borrowed before April 1, 1999 for purchase, construction, reconstruction repairs or renewal of a house property. Capital should be borrowed on or after April 1, 1999 for reconstruction, repairs or renewals of a house property. If the capital is borrowed on or after April 1, 1999, but construction is not completed within 3 years from the end of the year, in which capital is borrowed.

In addition to the above, principal repayment of the loan/capital borrowed is eligible for a deduction of up to Rs 100,000 under Section 80C from assessment year 2006-07. Terms and conditions for availing Tax benefits on Home Loans
1. 2. Tax deductions can be claimed on housing loan interest payments, subject to an upper limit of Rs 150,000 for a financial year. Interest on the fresh loan can be claimed as a deduction, subject to the stated upper limit. An additional loan for extension/addition to the same house and the person's deductions on the existing loan are less than Rs 150,000; he can claim further benefits from the additional loan taken, subject to the upper limit of Rs 150,000 for a financial year. Tax benefits under Section 24 and deduction under section 80C of the Income Tax Act can be claimed only when the payment is made. If a person fails to make EMI payments, he cannot claim tax benefits for the same. According to the Income Tax Act, only the person who has taken the loan can claim tax rebates. The interest on home loans taken for repairs, renewals or reconstruction, also qualifies for the deduction of Rs 150,000. A husband and wife, both of whom are tax-payers with independent income sources, get tax deduction benefits, with respect to the same housing loan; to the extent of the amount of loan taken in their own respective name. If a person buys a house and sells it within the same year/after 3 years, and if any profit is made, then a capital gains tax liability arises on the same for which the individual is liable to pay short-term capital gains tax since the sale took place in the same year. But, if the sale had taken place after 3 years, then a long-term capital gains tax liability would have arisen. If it is proved that the home loan is simply an arrangement between the loan-seeker and the builder or with a third party for the purpose of claiming tax benefits, then tax benefits will not be allowed and benefits, previously claimed, will be clubbed to the income and taxed accordingly. Tax benefits on interest on housing loans are allowable only for the original loan and for a second loan taken to repay the first loan and not for subsequent loans. This means that if you have already availed of one loan to refinance the original loan and want to now avail a third loan to refinance the second loan, tax rebate on interest payments will not be permissible. This is because the Section 24 (1) only talks of the second loan and not of subsequent loans. Even if you take the second loan at a rate of interest higher than the original loan, you will be eligible for a tax rebate on the second loan.

3. 4. 5. 6. 7.

8.

9.

SBI Life - RiNn Raksha

The dream house, the best education for your kids, the latest car, an overseas family vacation and much more. To fulfill these aspirations, most of us dont hesitate to avail loans. Now, with SBI Life RiNn Raksha, a group credit life insurance plan, you can rest assured that your family will always enjoy the assets,

which you so lovingly acquired, without worrying about any liabilities. In other words, live life Debt- Free!
Wide variety of loans covered -including Housing Loans, Car Loans, Agricultural Loans, Educational Loans and Personal loans. Cover can be availed for a policy term as low as 1 year upto maximum period of 30 years. Multiple Premium paying options - Single, 3 years, 4 years, 5 years &10 years. Upto 3 joint borrowers (including primary borrower) can be insured upto 100% of the loan amount. Tax benefits as per prevailing tax laws.

Product Snapshot
Age at Entry ^ Max. Age at Maturity Policy Term Premium Payment Terms & Policy Terms Min: 16 years Max: 69 years 70 years (cover would not extend beyond the 71st birthday) Min: 1 year Single Premium Level Premiums: PPT 3 4 Policy Term 5 years to 10 years 6 years to 15 years PPT 5 10 Policy Term 8 years to 30 years 15 years to 30 years Max: 30 years

PPT should not exceed 2/3rd of the policy term Sum Assured Moratorium Tax Benefits Minimum: 10,000 per member Minimum: 3 months Maximum: No Limit Maximum: 72 months

Under Sec. 80C and Sec. 10(10D) of Income Tax Act, 1961

All the references to age are age as on last birthday

Terms and Conditions

Surrender Value: Special Surrender Value (SSV) is available at any point of time after the first year of cover, provided at least first years premiums are paid. Grace Period: A grace period of 15 days from premium due date for monthly premium mode and 30 days from the premium due date for annual, half-yearly and quarterly premium modes will be allowed for payment of premiums. If any premium remains unpaid at the end of the grace period, the policy shall lapse. Cancellation of Loan Cover: If the loan is cancelled or not taken up by the proposed member after sanction, but the premium for the same has been paid, cancellation of cover may be requested. Such a request must be received at our office within 90 days of issuance of COI. Upon receipt of such a request, SBI Life shall refund 90% of the premium paid excluding taxes and cess, in respect of that member after deducting expenses towards stamp duty. Suicide Claim provisions: If the group member / life assured whether sane or insane commits suicide within one year from the date of commencement of the insurance cover for that member the sum assured benefit will not be payable. Only the premiums paid (net of taxes and cess) pertaining to the life assured concerned shall be refunded without interest after deducting the expenses incurred towards stamp duty.

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Your family should inherit happiness. Not your liabilities

Should you insure your home loan?

Buying a home is one of the most important financial planning decisions that you will make during your lifetime. Most Indians buy homes by taking a home loan from one of the lenders. However, this increases your risk profile as you now owe money to the lender. In order to mitigate this risk, it is strongly advised to get a home loan protection plan.

Why do I need home loan insurance?

By taking a home loan in India, you have created a liability for yourself. In case something happens to you, the loan will still have to be paid back through your regular EMI payments. If no surviving member of your family can continue to repay the housing loan, the lender can take away your home. Therefore, if you want to protect your family against the eventuality of having your home repossessed due to inability to pay your EMI, you must get insurance on your home loan.

What is a home loan protection plan?

A home loan protection plan is one whereby in the event of your death or disability resulting in loss of income, a sum of money will be made available towards the repayment of your loan. This ensures that your family or dependants do not have to worry about the loan repayment and your home will not be taken away. Lets take a quick example: Assume that youve taken a home loan for Rs.10 lakhs. In the next two years youve paid back Rs 2 lakhs of the loan amount and Rs.8 lakhs are yet to be paid. However, at this point you meet with an accident. No one else in your family is employed and therefore there is no income to make the home loan EMI payments due to the lender. In this case, if you have a home loan insurance, the insurer will repay the remaining amount of 8 lakhs on your behalf. However if you do not have home loan insurance you run the risk of your home being repossessed by the lender. Your loved ones could be left without the shelter of their family home.

How does it work?

The home loan insurance policy is like a term life insurance policy, except that the life cover will be equivalent to the outstanding home loan amount as per your loan repayment schedule. Your insurance cover keeps reducing as you pay the EMIs which reduce your outstanding loan amount.

How much does it cost?

The pricing depends on the age of the borrower, the amount of home loan and the tenure of home loan. The rates are lower than individual life insurance policies. You can opt for payment of premium on a one time upfront payment from your own source or the premium amount can be included along with the Home Loan.
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What are the eligibility criteria for these plans?

Generally, the minimum age to get this policy is 18 years and the maximum age at entry is 65 years. These policies are available both for joint and individual home loans. These policies sometimes require medical examination, and medical examination is carried out the cost SBI Life Insurance Company.

How are claims settled?

The policy is always taken in the name of the borrower of the home loan. In case of an eventuality, the proceeds of the insurance are paid to the lender directly. In case the borrower pays the entire loan back, the policy comes to an end with the close of the loan tenure. The borrower will not get back the premium paid if he lives beyond the loan repayment term.

Is it mandatory to have a home loan insurance plan?

It is not mandatory, but is highly recommended. If you don't want to put your family through any additional distress, its best to buy a SBI Life Dhanaraksha Plan.

Things to remember
If you have taken a home loan, you have increased your risk exposure. To offset this, you should take a home loan insurance plan. The insurance premium can either be rolled into your EMI or can be paid by you. In case of an eventuality, the proceeds of the insurance will be paid to the bank directly. A home loan protection plan will ensure that your family still has a home, even though you might not be around. Otherwise, your home might be repossessed if no surviving member of your family can continue with EMI payments.

What happens if a borrower prepays his/her loan?

If the member repays the complete outstanding loan before then term of policy ends, the member
can choose to surrender the policy and avail of surrender benefit, if any, or continue to have the cover as per terms and conditions mentioned in the Certificate of Insurance. Surrender value is available at any point of time after the first year of cover on request of the member, provided atleast first years premiums are paid. SV will be calculated as [50% x (Premium paid excluding extra premium, taxes, cess) x (unexpired term / total term) x (sum assured applicable as at surrender / sum assured at inception).

Are there any tax benefits ?**

An insured borrower who bears the premiums may be eligible for benefit under Section 80C of the Income Tax Act, 1961. Death claim payouts are currently tax-free (as per Section 10 D) of the Income Tax Act, 1961) ** Subject to changes in the tax laws. Please consult your tax advisor
For further details please contact nearest branch of SBI or login to http://www.sbilife.co.in

Premium applicable for the entire tenure can be added to the project cost for Home Loan
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Long Term

Home Insurance Policy of

You spend your lifetime in dreaming about a home of your own. You take the help of financial institutions to fulfill your dream. Along with the happiness comes the liability and the responsibility of paying for the same over the next few years. At SBI General, we make things easy for you to protect your dream home. With SBI Generals Long Term Home Insurance Policy, you can truly enjoy the home you have just acquired. What are the key benefits of SBI Generals Long term Home Insurance Policy? You can buy the Policy upto a period of 30 years & In-built coverage for earthquake What are the key features of SBI Generals Long term Home Insurance Policy? SBI Generals Long term Home Insurance Policy provides a comprehensive solution for protecting your Home against any unpleasant surprises that life may throw at you. It covers you against:

Protect Your Home. Protect it with SBI Generals Long Term Home Insurance Policy.

The losses to the structure of the house due to any natural and man-made calamities. On additional payment, coverage against Terrorism can be opted.

What is the scope of coverage of SBI Generals Long term Home Insurance Policy? SBI Generals Long term Home Insurance Policy is designed for covering loss or damage caused to the building used as residential homes due to fire and special perils. It covers destruction of or loss/ damage to the insured property by any of the following perils:

Fire, Lightning, Explosion / Implosion (excluding boilers , economizers, pressure vessels), Aircraft Damage,Riot, Strike & Malicious Damage Storm, Cyclone, Typhoon, Tempest, Hurricane, Tornado, Flood and Inundation Impact Damage, Subsidence and Landslide including Rockslide, Bursting and/ or Overflowing of water tanks, apparatus and pipes Missile Testing Operations, Leakage from Automatic Sprinkler Installations Bush Fir, Earthquake (Fire & Shock)

Further, on payment of additional premium, Terrorism Cover can be opted. Disclaimer: The above information is only indicative in nature. For details of the complete coverage please contact nearest office of SBI General Insurance What is the duration of this Plan? The recommended Plan option is a minimum of 3 years as it will optimally protect your dream home against any eventualities. The maximum duration one can take is 30 years. How the premium is calculated for SBI Generals Long term Home Insurance Policy? The rate of premium shall depend upon the Location & Period of Insurance Policy. What are the major Exclusions under SBI Generals Long term Home Insurance Policy? Major exclusions under the Policy are in respect of loss or damage due to:

Willful acts or gross negligence, Destruction/Damage by own fermentation, natural heating or spontaneous combustion Explosion/Implosion damage to boilers, damage caused by centrifugal forces, Forest fire War and nuclear group of perils, Unspecified precious stones, cheques, currency, documents, etc. unless specifically declared, Consequential losses, Theft during/after operation of peril, Pollution and contamination

Volcanic eruption or other convulsions of nature, Burning of Property by Public Authority, Electrical & Mechanical Breakdown Disclaimer: The above information on exclusions is only indicative in nature. For details of the coverage & exclusions please contact our nearest office and refer to the policy document. What is SBI Generals Policy on REFUND OF PREMIUM? The Company shall refund the premium as per the Companys short period scales as mentioned in the Policy in case of receipt of notice of cancellation from the Insured, provided there is no claim under the policy

For further details please contact nearest branch of SBI or login to http://www.sbigeneral.in
One time premium applicable for the entire tenure can be added to the project cost for Home Loan financing

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POINTS TO REMEMBER FOR DOCUMENTS SUBMISSION

Application to be submitted along with the required documents viz., PAN Card / Passport for photo ID proof and Telephone Bill for address proof of applicant (s) / guarantor (s). Income Proof documents viz., latest 3 months salary slip along with latest 2 years IT returns with Form 16. Salary slip needs to be attested by the employer else Employers Certificate as per the format given in the Application needs to be signed by the employer.

In case of take over of loan, the applicant needs to arrange for certified copy of Sale Deed along with the EC for the last 13 years from the Sub-Registrar office and obtain Foreclosure letter as well as the letter listing out the original documents held needs to be obtained from the present banker.
Property documents as per the list along with certified copy of sale deed and Nil Encumbrance Certificate needs to be submitted to enable us to submit to our Advocate for obtaining Legal Report. Property needs to be constructed as per the plan approval. After obtaining the legal report the property needs to be valued from the banks empanelled valuers. If the loan is for take over from the other Bank then the original project cost break up details needs to be submitted else two valuation report needs to be obtained from the two different valuers and the loan eligibility will be arrived based on the lower of the two valuation reports. If the property stands in the name of the husband and if the wife is working, the loan eligibility will be arrived at after including wifes income also into consideration provided she stands as guarantor to the loan. To construct a house on the plot purchased within 2 years from the date of availment of the Loan. In case of loan for plot of land in development projects undertaken by Government agencies, and the date of handing over possession of developed plot to the purchaser in such projects exceeds two years, the maximum time period may be extended by the sanctioning authority in sync with the date of possession. Customers to submit declaration, undertaking to construct a house on the said plot of land within the aforesaid period and also authorizing the Bank to charge higher rate of interest as deemed fit by the Bank or even recall the loan, in the event of failure to construct the house within the above stipulated periods. SBI Life Group Home Loan insurance premium can be added to the project cost .
Compiled by K Kesavan, Branch Manager, SBI, RBI Layout Branch, Bangalore Mobile 9449866623 / email : sbi.04408@sbi.co.in

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Move ahead in life with

SBI..Car Loans!

Enjoy the SBI Advantage:

Absolutely No Pre-payment / Partpayment / Pre-closure penalty for loans sanctioned on or after 01.05.2011.
Upto 85% on-road finance & Lowest interest rates Longer repayment period of upto 84 months. No hidden costs or administrative charges. Finance for one-time road tax, registration fee, insurance premium and accessories No advance EMIs.(Some Banks/companies ask you to pay one or more EMIs at the time of disbursement of loan, thereby effectively reducing your loan amount.) Complete transparency: We levy interest on daily reducing balance method. When you pay one instalment, the interest is automatically calculated on the reduced balance thereafter. When you pay interest on an annual reducing balance, as charged by many other companies/banks, the interest amount for the coming year is determined on the amount outstanding at the beginning of the year. You continue to pay interest even on the amounts you repay during the year.

Always compare the Equated Monthly Instalments (EMIs) and the total payments you would be required to make and not the rates of interest. No Particulars Details - Present Base Rate [BR] is 10.00% 1 2 Interest Rate
Processing fee

Period Entire Tenure

SBI Advantage Car Loan Scheme 2.25% above Base Rate, effective 12.25%.

0.50% of the loan amount, maximum Rs.10000/50% 60% 75% -For NAI upto Rs.5 lacs -For NAI > Rs.5 lacs & upto Rs.10 lacs -For NAI > Rs.10 lacs

All EMIs (existing & proposed) can go upto

Used Vehicles Up to 3 years 7.25% above Base Rate i.e. 17.25% p.a. Above 3 yrs up to 7 yrs 7.50% above Base Rate i.e. 17.50% p.a. NOTE: ALL INTEREST RATES ARE SUBJECT TO CHANGE, WITHOUT NOTICE. NRI Car Loans

< Rs.5 lacs 4.00% + BR, i.e. 14.00% Floating > = Rs. 5 lacs 3.75% + BR, i.e. 13.75% Floating * BR > Base Rate = 10.00 % as on 13.08.2011 Documents required: 2 Passport size photographs Latest 3 months Salary Slip Latest 2/3 years IT return with Form 16 Cheque for the processing fees Original Quotation ECS from the existing Salary Banker

In case of Car Loans sanctioned as Overdraft will carry additional 0.50% more than the regular rate

PAN Card / Passport / Driving License for ID proof Telephone Bill / Passport for Address Proof Salary A/c Bank Statement for last 6 months Document for source of income for margin Advance Paid Receipt. Signature identification from the banker.
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Compiled by K Kesavan, Branch Manager, SBI, RBI Layout Branch, Bangalore Mobile 9449866623 / email : sbi.04408@sbi.co.in

OTHER TERMS FOR CAR LOANS

Easy Car Loan
Eligibility

Advantage Car Loan

Income Criteria Min Loan Amt Max Loan Amt Take over Mode of disbursement Insurance

Between the Age: 21 65 years (for sanction of loan), loan can be granted for persons beyond 65 years who have sufficient, regular and continuous source of income for servicing the loan. Loan must be fully repaid before the borrower attains the age of 70 years. Minimum net annual income of Rs. Who are income tax assesses with 1,00,000/Minimum net annual income of Rs. 2,50,000/Nil Rs.500000/85% of on road price of the vehicle 85% of on road price of the vehicle Old Vehicle: 30 times Net Monthly Old Vehicle: 48 times of Net Income or 2.5 times the net Monthly Income or 4 times the Net annual income Annual Income Take over loans from other banks for vehicles up to 2 years old. If there is no change in ownership, the rate of interest for new vehicles will be applicable Direct to the Supplier. Free Personal Accident Cover equivalent to amount of loan outstanding (subject to Maximum amount of Rs 40 lakh. Optional Life Insurance at attractive rates of premium: The one time premium can also be added to the loan amount

EMI AT A GLANCE [Per Rs.100000/-]

SBI ADVANTAGE CAR LOANS
Interest Rates *

12 Months

24 Months

36 Months

48 Months

60 Months

72 Months

84 Months

12.25% 8897 4720 3334 2646 2238 1969 1779

* All rates quoted here are floating, which are linked to Base Rate of SBI.

AVAIL FREE FINANCIAL PLANNING & ADVISORY SERVICES FROM THE SELECTED BRANCHES OF SBI TO MAXIMISE YOUR WEALTH AND TO ATTAIN YOUR LONG TERM FINANCIAL GOALS

Compiled by K Kesavan, Branch Manager, SBI, RBI Layout Branch, Bangalore Mobile 9449866623 / email : sbi.04408@sbi.co.in

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CIBIL & CREDIT REPORT CIBIL (India's first credit information bureau) is a repository of information, which contains the credit history of commercial and consumer borrowers. CIBIL provides this information to its members in the form of credit information reports. As on September 2009, CIBIL has an information base on over 140 million consumer trades, and 4 million commercial trades which continues to grow at a fast pace and shares credit information with its 175 member base on the principle of reciprocity. CIBILs members include all leading banks, financial institutions, non-banking financial companies, housing finance companies, state financial corporations and credit card companies. Applied for a loan that got rejected because of a poor credit score, as your bank put it? Before you take out your anger on the agency that gave you this poor score, it would pay for you to know that the agency is in no way responsible for the rejection. Confused?. Then read on to find out what credit bureaus are all about, what you need to do to maintain a healthy credit score and the procedure to access your score from the agency and also make corrections to it, if any. Banks need a suitable decision making process to assess the risk associated in granting a loan for which they take the customers' credit report as one of the key inputs. Broadly, a credit information bureau is a repository of financial details pertaining to borrowers. A clutch of banks and financial institutions and broadly most credit grantors are members of the credit bureau and provide information pertaining to the loan(s) that a customer may have taken, his/her repayment history, delays or defaults and so on.
The data provided by the member banks pertaining to their customers' loans home, personal, auto

and the like (including credit cards) - is formatted into a systematic fashion in the form of credit information report. It is important to know what a credit information report contains and what it doesn't. Basic details including name and address, date of birth, Pan Number, passport number and so on are present. The financial information pertains to all loans and credit facilities availed by a borrower from various institutions, past payment history, amount overdue and number of inquiries made on that borrower by members. The credit information report does not contain income or details pertaining to the investments, savings and assets owned by the borrower. Scoring credits In order that banks and financial institutions may be able to assess the risk associated with respect to regular EMI repayment loans taken as well as credit card dues, the credit information report gives a strong basis for arriving at a decision.

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Credit bureaus also give a score called the credit score based on a customer's past track record of repayments. The score is calculated by using analytical tools and purports to give objective quantification of a customer's credit worthiness. For example, a score can indicate the likelihood of a customer becoming a defaulter on one or more lines of credit within the next year. Generally, a higher credit score indicates a more credit worthy customer. With the help of the credit information report and the score, the bank goes on to make key decisions. These include: to grant or reject a loan or credit card, the quantum of loan to be granted, rates of interest and other repayment terms and so on. It must be noted that only the bank is the decision maker on all the above. Maintaining a good score

Financial planning experts and Web sites such as bankbazaar.com and apnapaisa.com offer tips to maintain a good credit score, most of which is actually common sense financial prudence. These include making a budget of all your cash inflows and outflows and spending accordingly. Making all loan EMIs and credit card payments on time is another key aspect. A credit may be used, but judiciously with spending not generally stretching to the last bit of your credit limit. Reducing your overall indebtedness by repaying a substantial portion of loans when you have surplus cash (for example, when you get a lucrative bonus) that does not have any (other) pressing use also helps. Any disputes/discrepancy relating to repayments must be taken up with the respective bank immediately. Till the dispute is resolved, the credit bureau flags it. Even credit cards that are applied but never used or pre-approved card accounts must be closed with no dues, with the bank giving a statement to this effect. Apart from all these it is also desirable to access your credit report once or twice in a year to see if the information therein is accurate. If there is an error, one must immediately report it to the bank or financial institution concerned and have it rectified. The credit bureau cannot do this. The corrected information is given to the credit bureau by the member bank. CIBIL allows you to access your credit report (that is if you are a borrower from one of their member banks). This can be done by going to their Web site (www.cibil.com), filling up a CIR request form online and making a payment of Rs 142 through Net banking/credit or debit card. You will receive a registration ID and a transaction ID in your CIR form after payment. You need to take a printout of this and mail it to CIBIL in Mumbai with a copy of your address and identity proof. [For any information you can also mail to info@cibil.com]

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Systematic Investment Plan (SIP)

You Earn Regularly You Spend Regularly Do You Invest Regularly? Then read this now.

You might have heard of the rabbit and the tortoise story. Some people are like rabbits they save massive sums, when they decide to invest and they do get disillusioned at other times and withdraw the lot, in search of the next rainbow they see on the horizon. As opposed to that the tortoise sedately keeps a low pace and keeps walking and lo and behold, the tortoise wins in the tale! Just like it happened in Aesops fable, there are rabbits & tortoises in real life too. There are those who believe in big bang investments who also make quick silver exits, like the rabbit. And there are others who believe in the boring way to investments - investing small sums regularly. Such regular investments in mutual fund schemes have been called systematic investment plan or SIP by the mutual funds industry. Here small sums of money are regularly invested, typically on a monthly or quarterly basis, over a long period. There are several advantages of making such regular investments. Here are few: Tighten your belt: Monthly investment of a fixed amount brings in discipline into your fiscal behavior. Since the amount gets deducted from your bank account automatically, you do not even realise it. This inculcates a savings habit, forces you to save and brings in regularity in your investment pattern. Timing risk is eliminated: By investing a fixed sum every month, you can make the timing risk irrelevant for, when the market is high, you invest the same amount and get allotted a lower number of units and when the market is at low ebb, you get allotted a higher number of units for the same quantum of investments. This is also called rupee cost averaging. It is so named as your average cost of acquisition tends to be lower than the average sale price, over time. The only thing is that the broad long-term trend line of the markets should be upward. In our economy, it is very much so. The other risk is volatility. This works very well when there is volatility in the markets. Buying when it is low, we all understand, is the correct way to invest. But when the market is low, we seldom invest for fear grips us and prevent us from doing the sane thing. SIP ensures that we get this right. Convenience: The monthly investments can go directly from your bank account, taking the pain out of investing. By putting it on auto-pilot, you do not have to remember to issue cheques, nor miss out a cycle because you have just forgotten to invest, in a given month. Best for those with time constraints - which is all of us today! Works well over long periods: Over long timeframes, SIPs ensure that the average cost of investments come out lower as compared to market prices prevailing at a future point. Hence, inspite of short-term fluctuations and turmoil, you would be able to still get good returns, if you stay invested for long periods. For instance, Rs 2,000 invested every month on 2nd in SBI Magnum Contra Fund, from July 1999 would have fetched the value of Rs.10.72 lacs in Jan 2011. Not bad at all, considering there were couple of huge upheavals in 2000 and again in 2008. These are excellent longterm returns. Power of compounding: Getting to stupendously large sums over time seems incredible. It is simply the power of compounding. Albert Einstein called it the eighth wonder of the world. A small sum of money grows into a huge sum over a long period, as the interest earns interest, over time. For instance, a Rs 50,000 one-time investment grows into Rs.8.72 lakhs, over a period of 30 years at a 10% p.a returns. From your perspective, it is a sure-fire way to get to seemingly impossible sums of money, while investing driblets. No need to wait to accumulate big sums: Since SIPs can be done for as low as Rs 500, you now have little justification to postpone investing, till you accumulate a big sum to invest. In fact, by waiting to accumulate a big sum before investing, you run the risk of spending the money being accumulated. SIP will address this problem squarely.

Reaching financial goals in a painless manner: Making provision for your lovely Childs higher education needs; If you have set sights on a Car / Home or simply want to plan a comfortable retirement, you could choose to invest small sums regularly and reach your goals effortlessly. For instance, to accumulate a retirement corpus of Rs.1.50 crores after 28 years, assuming a return of 12% per annum, you would need to contribute an amount of Rs 5,500 per month, over this period. Now, that is not such a big deal, is it?
Source: http://www.dnaindia.com/money/report_everyone-should-have-a-systematic-investment-plan_1415142

For further details, please contact your nearest branch of SBI

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