Thursday, August 25, 2016

SBI Home Loan with Maxgain: A cool experience

First and the foremost: SBI Home Loan with Maxgain feature is THE best home loan product in the market. If anyone thinks otherwise then we can speak. 

Since last few months or so, SBI has completely separated their home loan business. The complete loan processing happens at RACPC. Your home branch only acts as a "sourcing branch". 
Now the managers in your branch can't play spoilsport to your loan party. They can no longer cross sell insurance, loan cover etc. Nor can they delay or reject your applications for frivolous reasons. 

Here are the high level steps during the course of a loan. 

Stage 1: Online or Offline? 
Most of the banks have started accepting online applications for different types of loans and SBI is also not behind. If you are very particular about filling the form yourself and probably want lesser visits to the branch/agent then "online" is the better way for you to start. 
In any case, the online application tool is a good way to check your eligibility, the actual applicable prevailing interest rates in your particular case, or any variants of home loan products. 

Stage 2: Arranging personal documents
It is the simplest part. Start collecting your personal documents like bank statements for 6 months, 3 salary slips etc. Check the entire list to avoid any problems later.

Stage 3: Arranging property documents
As almost everyone who has availed or tried to avail a loan from SBI will tell you, SBI has a stringent check on the property documents. 
Here a good agent can make a lot of difference. Remember that for every problem there is an alternative. Don't lose hope if you find anything short in your set of documents. There are ways to get alternative or duplicate documents. 
You also need society NOC (Yo should get the SBI format beforehand) before your loan is sanctioned. 

Stage 4: Agent or no agent? 
Although I usually prefer to do things myself, a good and experienced agent is always recommended. Moreover it's the bank that pays these agents so you don't have to worry about any brokerage or extra charges. 
In my case, the agent prepared a "watertight" file which was sanctioned within just 1 day after the file got "logged" in their system. 

Stage 5: Loan application
It's the time when you actually submit the application after completing all the formalities like arranging personal and property documents, issued cheques for the processing fees (if any), title report, structural audit report (if any) etc. 

Stage 6: File logging
Your loan application file is actually logged in after the bank manages to get all the documents from you and all other dependent documents like the society NOC (if society), CIBIL report, structural audit, title report etc. 

Stage 7: Sanctioning
As I have mentioned in the point no. 4, if you apply stringent checks at the time of procuring the documents, then the sanctioning process is like a breeze of air. But in case there are any exceptions (e.g. if there is more than a month's delay then you will have to again get the bank statement and income proof for the delayed period; or any problem in CIBIL score etc. ) then it will unnecessarily cause further delay. 
SBI also sends an sms confirmation once a file is taken in, and then after it's sanctioned. 

Stage 8: Appointment for disbursement formalities
Once your HL application gets sanctioned then SBI will be in a hurry to disburse it to you. You may take your own time for the disbursement though. 
You get a call for an appointment (it takes around 1 hour for an HL application to complete the formalities, so don't take it lightly). 
You will have to keep cash and cheques for the payment towards stamps, property insurance etc. 

Stage 9: Disbursement
You should always be on time for the disbursement appointment. There are always people who just walk in. But if you stick to your time then people at SBI will always cooperate with you. 
These days a loan interest rate is based on MCLR (Marginal Cost of Funds Based Lending Rate) which is very beneficial especially falling-rates regime. Don't worry if that is too technical for you. 

Stage 10: Operating Maxgain (OD account)
Every HL equal to or greater than 20L qualifies for a Maxgain account. It's basically an OD account which helps you save immensely in the long run. Always insist on Maxgain. 

I have not included much technical terms (it's a different thing that I am also not an expert in it ;-)). Feel free to ask any question in the comments seciton, technical or non technical regarding SBI HL. 

Disclosure: I have absolutely no commercial interest in SBI or any of its agents. I personally took my loan from SBI from the RACPC3, Baner, Pune branch where I got a very good experience which compelled me to write this post.