SBI home loan and 1% interest subvention

POSTED BY aum kal ON August 26, 2012 1:37 pm COMMENTS (9)

Hi,

Following is my situaion. Kindly answer them

I am working for a reputed software company. My age is 28 and annual package is 7 lacs (5.5 fixed and 1.5 variable)

I have purchased 2 flats in a established builder society. 1 flat is a 1BHK and another is 1RK. I have combined these 2 falts and made a 2 BHK.

The Price of 1BHK is 14 lacs and 1RK is 9 lacs which includes stamp duty and registration. So the total cost being 23 lacs.

My builder said I cannot register these 2 flats as a single flat i.e. 2BHK. I have to register it seperately.

Now according to government norms 1% interest subsidy is given for flats under 15 lacs. So will this scheme will be availble for both flats or only 1. I asked this to an axis bank home loan agent and he said I can surely avail it for one. He is not sure about both though. Can you please confirm on this? Also does SBI Max gain support these scheme.

I want to take SBI max gain home loan. One SBI agent said that I can get 85% home loan for 25 years on both flats as they are under 15 lacs. So total down payment being 3.5 lacs and loan being 19.5 lacs. I really doubt that cause on internet I have searched so much and didnt came on a single case where SBI gives 85% home loan. Can you confirm that SBI gives 85% home loan? If it does it will be a huge relief.

The possesson of flat is in January, 2013. I am getting married in January as well. Can I change my home loan to a joint home loan so my wife can also have tax benefits? Does SBI max gain allows that?

Please correct my minor doubt. If me and my wife depoist around 10-20K amount every month in the OD account, then will this save some EMI per month? Also, If I put 10 lacs lumsum amount after 1-2 years in the OD account, then the interst will be calculated on remaining balance i.e. around 8 lacs i suppose. Please confirm?

Does SBI max gain gives home insurance as well? 

Thanx.

9 replies on this article “SBI home loan and 1% interest subvention”

  1. Tony M says:

    Hello Ashal,

    Is there any way to get 85% of the property value as loan amount with SBI home loans? The flat is still under construction. Also the banker says that they will not consider Corpus fund, advance maintenance fees, service tax, EB charges, Car parking etc as part of the total cost. Is this right?

    Thanks,
    Tony.

  2. aum kal says:

    Hi Ashal,

    My wife also a software engineer. She is working in a MNC and her annual package is 3.5 lacs.

    Thanx.

  3. Dear Aum Kal, I’m trying to give you answers. May I know your (would be) wife is working or not at present? If yes, what is her income level?

    Please share the details to get a workable solution.

    Thanks

    Ashal

    1. Dear Aum Kal, answers for some general queries are given below.

      Does SBI max gain gives home insurance as well?
      Yes, SBI do provide home insurance through it’s subsidiary SBI General Insurance Company.

      Please correct my minor doubt. If me and my wife depoist around 10-20K amount every month in the OD account, then will this save some EMI per month? No, the EMI ‘ll remain same but the interest outgo ‘ll come down.

      Also, If I put 10 lacs lumpsum amount after 1-2 years in the OD account, then the interst will be calculated on remaining balance i.e. around 8 lacs i suppose. Please confirm? Yes, the interest ‘ll be calculated on the remaining balance which ‘ll be roughly 8-8.5L Rs.

      Thanks

      Ashal

    2. aum kal says:

      Hi Ashal,
      My wife also a software engineer. She is working in a MNC and her annual package is 3.5 lacs.
      Thanx.

      1. Dear Aum Kal, as on date you are unmarried so my take ‘ll be to go for 1BHK house registration under your name & 1RK under your wife’s name. This way, both of you ‘ll be able to get that 1% interest subsidy. The set up with your builder to convert these 2 units in to a 2BHK house ‘l remain as it is.

        From taxation point of view, as there ‘ll be 2 independent loans for each of you, the benefit ‘ll be there to both of you independently.

        Both of you may have individual Max Gain accounts.

        Please feel free to discuss if you need more help.

        Thanks

        Ashal

        1. Dear Aum Kal, if you opting the separate registration for these flats as I suggested above, both flats ‘ll be less than 15L Rs. valuation & thus these ‘ll be eligible for priority sector lending & hence 85% loan financing.
          So it’s very much possible to get 85% loan as well as 1% interest subsidy. On a different note, this interest subsidy ‘ll remain in future of not, I can’t comment. My guess is as good as yours’.

          Thanks

          Ashal

          1. aum kal says:

            Hey Ashal,

            I checked with SBI representatives. Unfortunately SBI does not give 85% loan for under construction flats.
            They can give 90% loan for already constructed flats.
            My flat will be ready in January. Hardly 4-5 months left but still I cant get 85% loan 🙁
            The builder is not ready to wait for 4-5 months as well which is obvious.
            Well, I guess I have to take loan from HDFC/AXIS bank where they give 85% loans for loan upto 20 lacs. It would have been great if public banks also would have this facility. So no SBI MAX gain for me.

            I enquired about 1% interest subsidy and it will be applicable for both of my flats. Thats good.

            Neways, I would thank you for all your help.

          2. Dear Aum Kal, later on once flats are with you, you may switch over to SBI. What’s your take on separate registration for both flats one for you & one for w’d be wife?

            Please share with your views.

            Thanks

            Ashal

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