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South Indian Bank Home Loan

Home Loan Bank Information

Bank Name
Interest
Tenure
Processing Fees
AMBAK
8.25%
0 - 30
YEARS
0 %
+ GST
BASIC Home Loan
8.35%
0 - 28
YEARS
Rs 999
+ GST
PNB Housing Finance Limited
8.5%
1 - 30
YEARS
Rs 999
+ GST
Canara Bank
8.4%
1 - 30
YEARS
0.5 %
+ GST

Table of Contents

 

Introduction

South Indian bank is one of earliest banking institutions in the country which can trace its roots to the Swadeshi Movement of India. Operating out of its headquarters in Thrissur, Kerala, it is among the largest private sector banks in India with a wide network of over 850  branches spread all over the country. Among the redeeming features of home loan bouquet of South Indian Bank, highly competitive interest rates are offered to your benefit.

South Indian Bank Home Loan Interest Rates

Interest Rates are as of 2019

As per stipulation of the RBI, SIB is tied with the MCLR regime from 1st April 2016. Of immediate concern are the MCLR rates that impact the different home loan schemes. They are:

 

MCLR effective in SIB from 20th July 2019
Tenor Rate
Overnight MCLR 8.60 %
One Month MCLR 8.65 %
Three Month MCLR 8.80 %
Six Months MCLR 9.05 %
One Year MCLR 9.50 %

 

Floating Interest Rate effective in SIB from 20th July 2019
Scheme Rate
SIB Home Loan 9.00 % to 11.95 %
Women borrowers are allowed concession of 0.50 %

 

As we are discussing the cost of capital, it is imperative to have an idea about the applicable fees and charges, some of which are applied upfront impacting your outgo. However, the items quoted are not exhaustive and there may be far more large number of charges that will be applied depending on the emerging scenario.

 

Applicable charges and fees for SIB Home Loan
Category Rate
Processing

0.50 %of the loan amount.

  • Minimum: Rs.1000 + GST
  • Maximum: Rs5000 + GST
Prepayment Closed after 2 years from own resources: Nil
Closed before 2 years from own resources: 1 % of prepay amount
Closed through take over by other banks: 2 % of prepay amount
Penal Interest 2 % additional
CIBIL Charges Rs. 50

Eligibility Criteria for South Indian Bank Home Loan

Eligibility is the most important aspect that determines where you stand in the scheme of things with the bank. Let us probe the various eligible criteria in greater detail to get a comprehensive idea of the scheme. The various criteria to be eligible for a home loan from South India Bank is as follows:

 

Eligibility criteria for SIB Home Loan
Purpose
  • Purchase of ready flat / house
  • Repurchase of ready to occupy flat / house not exceeding 20 years.
  • Purchase of plot for construction of house thereon.
  • Purchase of under construction flat / house in Bank approved Housing Projects.
  • Extension and addition to existing house without any loan limit.
  • Alterations, renovation, refurbishment maintenance of exiting flat / house.
  • Reimbursement for expenses for under construction flat / house within two years.
  • Reimbursement of outright purchase of ready to occupy flat / house within two years.
  • Take-over of loans with other Financial Institutions
Target Audience

Resident Indians

  • Salaried: Employees of the Public/ Government and Private Sector belonging reputed organizations only.
  • Self-Employed Professionals (SEP): Doctors, lawyers, CA, Architects, Engineers etc.
  • Self-Employed Non Professionals (SENP): Manufactures, Traders, Businessmen
  • Agriculturist
  • Senior citizen / Pensioners

Non Resident Indians

  • Salaried
  • Businessmen
Age
  • Minimum: 21 years
  • Maximum: 75 years
Loan Amount
  • Minimum: Rs.2L
  • Maximum: Rs1500L
Tenure
  • Minimum: 5 years
  • Maximum: 30 years or 75 years of age, whichever is early.
LTV Up to 90%
Security Equitable Mortgage of the purchased / Constructed property with original title deeds
Credit Score Minimum 600

South Indian Bank Home Loan Schemes

The rate of interest applicable to each scheme for the issue of cost of capital is as follows:

Floating Interest Rate effective in SIB from 20th July 2019
Scheme Formula Rate
SIB Home Loan for all the purposes

1 Year MCLR + 0.00% or

6 Months MCLR + 0.10%

9.00% to 9.60%
Women borrowers are allowed concession of 0.50%
Home Loan Surrogate

1 Year MCLR + 1.00% or

6 Months MCLR + 1.10%

10.15 % to 10.50%
Home Loan Saver 1 Year MCLR + 1.00% 10.50%
Home Loan Smart

1 Year MCLR + 0.50% or

6 Months MCLR + 0.60%

9.55% to 10.10%
Home Loan Smart Surrogate 1 Year MCLR + 1.00% 10.50%

 

As we have seen, SIB home loans, straddle a wide canvas and this is where every possibility is factored in. The wide berth allows you to propose the loan of your choice. It gives a good opportunity to recapitulate the salient features of SIB home loan and the fee and interest rate to refresh our memory.

 

Main Home Loan by SIB:

The primary home loan is called the SIB Home Loan. The target audience is an all compassing cross section of Resident and Non-Resident Indians. Among the residents, all categories are welcome to be the home loan borrower. However, it is ensured that the antecedents are proper emerging from reputed organizations with a reasonable credit score. While the age range is also high, it is ensured that the tenure is adjusted for the salaried even after retirement if you have a pensionable income. However, the maximum age for liquidation of the loan is 75 years. For Surrogate program the extension is based on the income documents or the assessments of your bank statement of the preceding 12 months. Top-up loan is available to existing customers and takeover loans are subject to 20% of the existing loan amount or Rs.25L, whichever is lower with a satisfactory track record of repayment over at least 12 months. Furthermore, it is required to be in harmony with the bank’s policies.

South Indian Bank Home Loan for NRI and HNI

South Indian Bank Home Loan for NRI

SIB offers home loans to NRIs also called as Non – Residential Indians with all the features in the home loans applicable to the resident Indians. Most of the NRIs view home ownership here as an investment option. Since, the norms and features of the home loan for residents and NRIs are similar they are also benefited out of the wide canvas in offer. It works both ways as their hard currency earning fetch handsome exchange value and they are able to propose high value projects.

However, in the case of NRI, you have to comply with the rules set by the RBI from time to time and also the regulations of FERA. The documentation part differs with the resident Indian to the extent that their income and other proof are different from the normal Indian standards.

SIB is among the few private banks that offer home loans to business men other than the salaried class. The eligibility criteria for a businessman to avail a home loan from SIB is almost similar to the features of a resident Indian. The eligibility criteria is as follows:

 

Eligibility criteria for SIB Home Loan for NRI
Purpose Same as applicable to resident Indian home loan
Target Audience
  • Salaried
  • Businessmen
Age
  • Minimum: 21 years
  • Maximum: 75 years
Loan Amount
  • Minimum: Rs.2L
  • Maximum: Rs1500L
Tenure
  • Minimum: 5 years
  • Maximum: 30 years or 75 years of age, whichever is earlier.
LTV Up to 90 %
Security
  • Equitable Mortgage of the purchased / Constructed property with original title deeds.
  • Power of attorney in favor of a resident close relative

 

Documentation for NRI Home Loan at SIB
The documentation is different from the resident Indian home loans in which there are some special documents that are applicable only to them. This is in addition to all the documents common to the others barring the income, job and co – applicant parameters, which are elaborate in the case of NRI
NRI Salaried
  • Valid Indian Passport Visa Stamped
  • Salary Certificate from the current employer
  • Copy of Employment Contract or Work Permit in English duly endorsed by the employer and the Embassy of the resident country.

Latest bank statement of the preceding 1 year for NRE/NRO account in any bank in India,

or

of the resident spouse where regular  remittances are received,

or

Salary credit account statement of preceding 1 year

NRI Businessmen
  • Valid proof of business and financials which includes duly audited Balance Sheets and P&L Account Statements
  • Overseas bank account statement of personal account where the income is regularly reflected,

or

  • Bank statement of ant NRI account in India in any bank incorporating regular remittances.

 

South Indian Bank Home Loan for High-net-worth Individuals

Home loans at SIB are very generous where loan amounts as high as Rs.1500L is offered and Loan to Value of up to 90 %. This is a very wide range offering the best of terms. In respect of high-net-worth individuals, no premium services or any specialized home loan are offered. The bank values all of their clients and the high-net-worth individual may be different only to the extent of liquid assets at his disposal.

Maximum amount that can be loaned in this scheme:

We have already averred that SIB does not extend any special scheme to the high – net – worth individuals and the home loan scheme is endowed with features covering a large target audience. In such a scenario, SIB can only offer the maximum amount that is quoted in the home loan as Rs.1500L.

How to Apply for South Indian Bank Home Loan

The bank has a facility for you to express your interest in the housing loan on the bank’s portal. You are also authorize to take the matter forward with you. Alternatively, you can download the application form from the portal and visit the nearest branch with the relevant documents for the authorities to process your application and help you get the best deal. The application process can be summarized in the following steps.

  1.   Submission of completed application forms along with the preliminary documents.
  2.   Evaluation and vetting of the legal documents.
  3.   Sanction and release of offer letter.
  4.   Acceptance of the offer and signing the agreement and other formalities.
  5.   Disbursal of the loan as per terms, subject to your compliance of the margin amount.

Document Checklist for South Indian Bank Home Loan

For easy comprehension, it is prudent to break up the checklist into multiple sections to fit your specific norm. You must remember that the list is not exhaustive and the bank is well within its rights to seek further documents it deems fit, based on the emerging situation.

List of Documents common to all categories of borrowers
KYC
  • Photograph
  • Identity Proof: Any valid document like EPIC, PAN card, Passport, Driving License, Aadhaar Card or any other acceptable to the bank.
  • Age Proof: Any of the above or school leaving certificate with DOB.
  • Address Proof: Any of the ID cards stated which has the full address or any current utility bill like Electricity and Teleohone.
Resident Income Salaried
  • Latest 2 salary slips.
  • Latest 6 salary slips if variable
  • Latest 2 ITRs with computation details
  • Latest 2 Form 16
  • Salary account bank statement  for 6 months
SEP / SENP
  • Proof of Business including existence and license from appropriate authorities.
  • Latest 2 ITRs with computation details
  • Bank statement for 6 months
Agriculturist
  • Latest 2 ITRs with computation details
  • Latest tax receipts of agricultural land
  • Bank statement for preceding 1 year
Pensioner
  • Copy of PPO
  • Latest pension credit statement for 6 months
  • Bank statement for the past 1 year
NRI Income Already described under Home Loan for NRI section
Property Documents
  • Encumbrance Certificate for previous 13 years.
  • Approved plan and location map.
  • Receipts of land and property tax receipts.

 

List of Documents based on purpose of the loan
Construction on own plot
  • Approved Building permit
  • Estimate from an empanelled Engineer.
Purchase of House
  • Sale agreement
  • Possession certificate
Purchase of plot for construction later
  • Sale agreement
  • Self – declaration from the applicant about the time frame for construction.
  • Estimate and area of construction.
Purchase of ready to occupy Flat
  • Sale agreement
  • Completion / Occupation certificate from the builder
Purchase of Flat under construction
  • Agreement of sale and construction
  • Tripartite agreement
  • Statutory approval and clearances
  • NOC from the project financing bank.
For extension / renovation etc.
  • Estimate of the project
  • Approved plan for extension
  • Latest receipts of the building
Takeover
  • Sanction order of the existing home loan
  • Loan account statement of 12 months
Construction Reimbursement
  • Occupancy Certificate
  • Possession certificate
Purchase Reimbursement
  • Sale deed
  • Completion certificate

 

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