Purpose – The Max gain  Housing Loan is for customers wishing to opt for a overdraft facility for their housing loan. The bank provides the loan account similar to a savings or current account. The customer can park surplus funds in the loan account. Thus earning interest on the same.

Special feature: Interest rate for first year is 8% and for 2nd and 3rd year is 8.5% PA (this offer is till 31 march 2010). After 3rd year the customer can choose either fixed or floating based on prevailing SBAR.

Maximum term – 25 years (upto a maximum age of 70)

Quantum of loan – Minimum loan amount of Rs 5 lakh

Rate of Interest- The bank provides the loans in two categories fixed and floating. For loans above 75 Lakh the interest rate will be only floating rate based on SBAR.

Documentation – Salaried individuals need to show income related documents along with 6 months bank statement, for self employed and Business persons, the documentation includes last 3 years income tax returns and Profit and Loss statement of the business activity. The customer has to also provide signature identification from current banker.

Fees: The bank charges a fixed fees based on the quantum of loan. Rs 1000 for loans below 5 lakh, Rs 2000 for 5-10 Lakh, Rs 5000 for 10-20 lakh, Rs 7000 for 20-50 lakh

Checklist before you opt for your SBI Home Loan

  • Calculate your EMI to understand how it will affect your monthly budget
  • Understand your home  loan eligibility before you apply for a loan
  • Compare the interest rates of various bank offers
  • Evaluate the total loan cost (processing fee + service charges + total interest outflow)  you would pay for each offer and zero in on the offer that gives you the least total interest outflow.

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