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The State bank of Hyderabad is one of the main five associate banks of State Bank of India. In its former run as the Hyderabad State Bank the bank opened over 2000 branches all over India. Its main objective is to simplify banking services along with its personal banking, insurance service, home loan provider schemes & other related internet & mobile banking services.
Headquartered at Hyderabad, this nationalized bank is also an associate bank of the housing scheme under the Pradhan Mantri Awas Yojna launched by our Prime Minister, Shri Narendra Modi. Its banking services online portal is very interactive and along with the other attractive finance products, the State bank of Hyderabad also offers a very inviting home loan scheme to its customers.
The State Bank of India Housing Loan Scheme
The SBH believes in the housing dreams of their customers and thus, brings to them its housing loan scheme without any prepayment penalties which can be availed by any who is above 18 years of age earning a steady income. Under the SBH home loan product, borrowers can obtain a home loan at interest rates between 8.85% to 9.20% per annum and that too for a period of 30 years maximum.
Purpose of the SBH home loan
The SBH provides home loan for the following:
1. Construction or purchase of a home or apartment
- New construction
- Dwelling already existing
2. Purchase of a piece of land or a plot to do home construction
- Located in residential areas
- Located within the municipal limits of a state
- Located in or around metro or Urban/Semi urban areas
3. Purpose of repairing and renovation of a house
4. Funding expenditure relating to home improvement
5. Loan takeover of another banks.
Documentation required for loan processing
Successful processing of a home loan requires the home loan borrower to submit with the SBH these documents:
1. A duly filled in and signed application form carrying latest photograph of the borrower
2. Processing fee charge cheque in the favor of State Bank of Hyderabad Ltd
3. Bank statement of last previous months
4. Government IDs like aadhaar card, driver’s license, voter ID etc
5. Residence proof authenticating documents like a electricity bill, telephone bill, ration card etc.
6. Income statements of the borrower
In the case of salaried working class applicants:
- Latest ITRs showing the computation of income of last 3 years
- Audited balance sheet and profit & loss account of last 3 years certified by a CA.
In the case of self employed applicants:
- Latest ITR with a certified computation of income statement.
|Loan Amount||Margin (%)|
|Loan up to Rs. 20 Lakhs||15|
|Loans above Rs. 20 Lakhs||20|
The SBH home loan scheme brings a processing charge upon to its borrowers for processing the home loan :
|Loan Amount||Processing fee to be paid|
|Loan up to Rs. 25 lakhs||0.25% of loan or minimum Rs. 5000.|
|Loan above Rs. 25 lakhs but up to Rs. 75 lakhs||A flat charge of Rs. 6500|
|Loan above Rs. 75 lakhs||Rs. 10000 flat.|
Pradhan Mantri Awas Yojana (PMAY) housing scheme offered at the SBH
Issued under the esteemed guidance of the Modi Government, the PMAY housing scheme has been brought into action to fulfill housing dream of every Indian belonging to low and middle income groups. The PMAY is also popularly known as the Credit Linked Subsidy Scheme and has affordable interest rates charges coupled with many attractive features. Under this housing scheme, loans are awarded without charging any processing fee and settled without any prepayment charges.
How to close a State bank of Hyderabad home loan through Creditseva
A home loan procured from the State bank of Hyderabad can be closed easily if a borrower follows the correct procedure for home loan closing. Borrowers must remember that home loan when repaid completely is like a boon for them self and their families.
A borrower must henceforth put extreme care at the time of a home loan closure process as a shortcut or an ill-informed move could cost the borrower many future hassles.
Creditseva assures borrowers that their SBH home loan will be closed smoothly with dedicated assistance of Creditseva’s financial experts.
All that Creditseva requires from SBH home loan borrowers is that they must either-
- Access their Creditseva user account, and then
- Follow the home loan closure process of the Creditseva assistance team.
A SBH home loan can be closed by a borrower by following any of these 4 ways
a) Home Loan Pre Payment
- If the borrower wishes to get rid of the debt of a home loan at the earliest or there and then, he may simply opt to repay the home loan in advance.
- All that the borrower would be required to do is to pay of all EMIs and other related dues in lump sum.
- Once done he can then request the bank manager to close the loan account and provide him with all property related documents.
b) Home Loan tenure completion
- A home loan goes on till its tenure does not complete.
- A borrower is required to pay installment repayments during the entire loan tenure.
- Hence, once the loan tenure completes they can proceed to close the loan account.
c) Home loan default
- If due to any mishap or unfortunate circumstances the loan borrower becomes bankrupt or unable to pay off any more installment of the home loan, the borrower can request SBH to close the home loan account.
- The status of the home loan becomes default.
- The bank will then detail the process for writing off the home loan so as to close the home loan account.
d) Home Loan Settlement
- In some cases the bank can also request the loan borrowers to settle their home loan account if payment of the installments are not being done timely.
- Usually banks study a home loan account for a maximum period of 3 months for assessment of repayment ability.
- If they notice that the amount will still stand unpaid they will change the loan account status to NPA (non performing account).
- The borrower will then be requested by the SBH to settle the home loan account.
A SBH home loan can be closed by following the below detailed 12 step home loan closure procedure
SBH home loan borrowers must close their home loan by following these steps closely:
|Step 1||Visit the nearest SBH branch in person and meet up with a bank representative
Since a home loan closing process requires submission of documents and calculation of final payment to be made against the home loan closing, it is preferably advised to get in touch with a bank representative of the SBH.
|Step 2||Source of income disclosure form formality
A home loan borrower is then required to fill out a payment source disclosure form because On the basis of the details mentioned there only will the bank representative calculate the final payment to be done for settlement of the home loan. The borrower can take assistance of the bank representative for filling up the form.
|Step 3||Give the cheque of final payment against the home loan
The cheque must be drawn in the name of ‘State bank of Hyderabad Ltd’
|Step 4||Receipt collection
The home loan borrower must collect the receipts of payments made by him as they will be the proof that the home loan has been duly been paid for.
|Step 5||Obtain the Amortization sheet of the home loan account in question
Since the amortization sheet will provide the exact details of all the EMIs paid by the home loan borrower till detail, the amortization sheet of the home loan must be collected.
|Step 6||Submit a written letter requesting the SBH to close the home loan account
In order to get the home loan account closed, home loan borrowers are then required to submit a handwritten letter to the SBH branch manager to close the home loan account at the earliest. Only after delivery of this letter will the borrower be able to retrieve other home related documentation.
[A performa of a written letter has been detailed below]
|Step 7||Collect property deed and other related files
After the payment is released, the bank reports the loan closure to the registrar of properties who then sends the property deed of the property to the bank. This process takes around 10 to 15 days.
(The list of home related important documents is detailed in the FAQs)
|Step 8||SOA (Statement of home Loan Account) update
A home loan closing will reflect in the statement of loan account. Borrowers should request the management of the bank to show him that the update has been made.
|Step 9||CIBIL Credit Score Update
Every loan closure makes the CIBIL score of a borrower to fall and this update is then shared with the home loan borrower to inspire him/her to start working on it in order to build it favorably.
|Step 10||Remove any lien created on the property
Borrowers should take measures to find out if a lien has been created by the SBH against the home by the registrar of properties. If yes, then the borrower must request the bank management to assist him/her in removing the lien as properties cannot be sold if a lien exists on them.
|Step 11||Obtain an Encumbrance certificate (EC)
The EC shows all transactions entered in the name of the property. It should be collected from the registrar of properties office.
|Step 12||Lawyer’s clearance certificate
Borrowers must take help of a known lawyer to provide them with an LCC. It is like an expert opinion about every legal aspect relating to the property in question. It certifies that the property in question has been duly paid for and is lien free.
Sample letter to be handwritten for requesting State bank of Hyderabad to close one’s home loan
The Bank Manager
State Bank of Hyderabad
[Address of the branch where the final payment was made against the home loan]
Subject: Home loan closure request
I, [Borrower’s full name] have a home loan issued under the account number – […………………] which I have duly repaid. All related home loan dues have been cleared and proving the same I have attached the receipt of the last EMI payment.
I request you to close the above mentioned home loan account at the earliest and deliver me a letter of acknowledgement regarding the payment I have done for the closure of the home loan.
I would also like to receive the following asap:
1. Original Property Documents
2. Loan closure certificate or NOC/NDC
3. CIBIL score update
4. Other miscellaneous documents.
SBH Home Loan Closure FAQs:
1. Can a State bank of Hyderabad Home Loan be closed by pre paying it?
Yes, a SBH home loan can be closed via prepayment.
2. Are prepayment charges levied on a SBH home loan closure done as prepayment?
No, the SBH home loans have an attractive feature of nil prepayment charges.
3. For a smooth home loan closure when should a home loan borrower visit the SBH branch?
Preferably and for convenience sake, a home loan borrower must make home loan closure related visits on a weekday.
4. What are other important documents are shared with the home loan borrower after successful closing of the home loan?
- Home loan NOC
- Property related original documents
- Principal cum interest statement
- Detailed EMI statement of the home loan
- Final statement of the home loan
- CIBIL credit score update
- Thank you letter from the SBH management.
5. How long does credit score take to update itself after a home loan closing?
CIBIL score updates within 28 days of a home loan closing have been paid for lawfully.
6. Can a borrower do a home loan repayment in any other way with State bank of Hyderabad?
Yes, SBH home loan repayments can be done by giving standing instructions to the bank management.
7. If a borrower does an EMI payment late, is a penalty charge created against him/her?
Yes, delayed payments call for penalty charge upon the borrower of a home loan.
8. A SBH home loan borrower can expect their CIBIL credit score update to reach them after how much time period?
The SBH will share the CIBIL credit score update after a month after the credit score reaches them.
9. Is it ok to request the State bank of Hyderabad to courier the property related documents to a home loan borrower?
It’s the sole discretion of the bank however, its best advised to go and collect the property deed file in person.
10. If a home loan borrower’s EMI cheque bounces, will a charge penalty be imposed?
Any dishonor will bring upon the home loan borrower a charge of penalty by the SBH.
11. Can a home loan borrower request the SBH to send the amortization sheet of the home loan on mail?
Yes, but, acceptance of such a request depends solely upon the management of the SBH.
12. What does a lien on property mean?
In order to stop borrowers from selling off properties on which a loan is still outstanding, the SBH might request the registrar of properties to create a lien against it.
13. Statement of Loan Account serves what purpose?
A statement of loan account is where all transaction of a home loan is recorded. It shows the varying status of a home loan account and is thus, very useful.
Home Loan Closure By Banks
- Home Loan Closure
- HDFC Bank Home Loan Closure
- ICICI Home Loan Closure
- SBI Home Loan Closure
- Andhra Bank Home Loan Closure
- Kotak Bank Home Loan Closure
- ING VYSYA Bank Home Loan Closure
- Jammu and Kashmir Bank Home Loan Closure
- Karnataka Bank Home Loan Closure
- Karur Vysya Bank Home Loan Closure
- Lakshmi Vilas Bank Home Loan Closure
- LIC Home Loan Closure
- Magma Fincorp Home Loan Closure
- Sundaram BNP Paribas Home Finance Loan Closure
- Cosmos Bank Home Loan Closure
- State Bank of Hyderabad Home Loan Closure
- Standard Chartered Bank Home Loan Closure
- How to Close DMI Housing Loan
- GIC Housing Finance Home Loan Closure
- Nainital Bank Home Loan Closure
- OBC Home Loan Closure
- Punjab and Sind Bank Home Loan Closure