Complete Process of SBI home loans

I decided to write this blog because unlike all other things searchable on the internet there is no information about SBI home loan detailed process. From the day you apply and till the date the loan is really disbursed, one is really in the dark with respect to time and process. SBI is not very vocal about the process they follow to decide on the home loan application. 
The winner in my story is SBI and when my loan got sanctioned, I had the same excitement as that of an ecommerce startup who raises funds for expansion.

The structure of SBI home loan process what I dealt with. 

1. Application and Pre-Authorization -
Docs required here are address proof, salary proof (stamped by HR), visiting card or company id card, passport size photos, your assets and liabilities statement, do ensure to write the total amount of premium paid till date while writing about LIC policies. This forms the base of your assets which decides your loan. If possible do buy your CIBIL score as this will help you understand the likelihood of loan getting sanctioned through the score.


Basis your income and current expenses, you are granted a pre-authorization sanction letter for the amount you applied for, which is valid for about 4 months. Ensure that you get pre-authorization done so that you have a case building up at the branch.You are charged for this by the bank.

2. Purchase agreement and search title - Post your application, the legal empannelled lawyer will review your property agreement and he will also take title search report. This is a very grey area and expect some queries that will be raised by the lawyer and this is the most time consuming part. Whenever you are buying a house, ensure that the housing society where you are buying a house has a deemed conveyance. A general notion is that, a deemed conveyance is assumed post society formation but it is not unless society has applied for it. Most societies have not applied for deemed conveyance and in case the search report shows the society property being mortgaged to the bank, it will delay your application. 
This might happen when the builder of the building mortgages the land to the bank to finance the building cost. Although technically this doesn’t affect your title but its what lawyers raise queries upon. 
If your builder is Lodha Builders then getting a clarification letter itself is really tough. I really do wonder how Lodha builders do not have a simple support line or customer support team which responds at all, adding to this there is no law regulating builders as well to make sure they respond the customer queries in time.

Index II document - This is the most important document and is easy to procure from registration office ( actual expense is Rs. 100 max but through broker it may go to Rs.500). This document is also available online, all you need is agreement registration number (which is stamped on the agreement)
You can get this from the below link.
https://esearchigr.maharashtra.gov.in/testingesearch/wfsearch.aspx

All the documentation so far culminates itself into one big file which actually moves across the organization... For getting online status of your loan application you can visit this link.
https://www.sbi.co.in/user.htm?action=sbilosstatus


This will give you status for the heck of it. 

 


3. Follow up!!! - This is where you will spend a lot of your time. Since SBI is not known to be transparent in their process you will not know where you loan is really stuck.
Follow up is required with RACPC, Branch, Lawyer etc. If possible choose a branch where your relatives or people you know work, this will really provide you with useful insight information about your loan and probable solutions to the queries.

4. Sanction & documentation - This is the stage where you always want to be in from the day you applied for home loan, remember time spent when you reach this stage will be in months. Post sanction you will get an appointment for documentation with RACPC and you may have to revisit the RACPC after this appointment since they would not have told you before hand all the documents that are required.

As a bonus gesture - SBI will offer you credit card, home loan insurance (not really required to buy)

5. Follow up !!! - With branch, RACPC for your disbursal. Once done, then you are part of the few lucky guys who will save money.

There are couple of things to note before you apply to SBI

1. Do open an account with SBI first, ensure not to have any joint account through which you will pay the builder or your seller, unless this account is shared with your co-app. Choose a branch where your relative works or is closer from the society where you are buying the house from. This increases the probability that a similar case is already sanctioned. 
2. Be ready for follow up - Its RACPC which disburses the amount to the seller at the behest of the branch. You need to keep in touch with both POCs. The POCs will be approacheable (remember everybody pressurises them from Bosses to Polititions, they are humble but overburdened)
3.  Time frame - The average time frame is more than 3-4 months, keep your expectation really low when dealing with SBI especially when it comes to documentation. Expect that they will ask you to bring a really non-sensical document. Mine took more than 4 months.
4. If your loan has a women as first applicant, do ensure to make her first owner in your agreement. IT DOESNT MATTER WHO PAYS THE STAMP DUTY, it could be you or your wife.
5. You will always wonder during the whole time that even with this rigourous & time consuming process, the king of good times was able to dupe SBI for 800 cr!!! You loan was still miniscule compared to 800 cr :-)

 Next blog will be dedicated to the loosers  called HDFC Home loans