Weird Loan Sanction Process for SBI Home Loan

POSTED BY praveen10 ON October 19, 2013 9:00 am COMMENTS (7)

Last month I have applied for HL from SBI and because they have their month closing they sanctioned my HL within a day. But its more than 2 weeks and I haven’t received Sanction letter only got a sms that “Your HL is sanctioned and someone will contact you from branch”.

Also they forced me to open SBI life RinRaksha policy along with HL and added that account to Loam amount without intimating me. lso when I logged in I am able to see two new account created:

1. SBI HL MAXGAIN OD with limit equal to 25 lacs (loan amt I applied for) and

2. MAXGAIN SURAKSHA with limit 40,030 (SBI Life onetime premium though I opted for monthly installments)

Also I had only contact of Sales person and on asking any contact for departments who is handling my case he is providing no details. My question is is anyone aware of above two account type? What is harm in including SBI Life premium into Home loan amount. One more question that sanction letter should have all details like

a. loam amount sanctioned

b. rate of interest offered.

c. any other payment/charges etc.

But as I know SBI only mention sanctioned loan amount in sanction letter without any details. Also AFAIK they cannot open HL accounts without sending me the sanction letter.



7 replies on this article “Weird Loan Sanction Process for SBI Home Loan”

  1. Bibin says:


    Will SBI ask for the registration documents of your flat or just the sale agreement between the builder and me is fine for SBI to approve and sanction the loan?

    1. They will ask for Sale document

  2. ashalanshu says:

    Dear Praveen, happy to iknow that you opted the correct choice.



  3. praveen10 says:

    Thanks Ashal,
    Yes I did the same thing. Yesterday I went there and opt for ‘Self Payment’. Actually SBI Life have two payment options which i was not aware of as I have not been provided any document/brochure before applying for SBI Life.

    Payment options for SBI Life:
    1. Bank payment on your behave: Bank will open a home loan account and disburse the amount and you will have to pay emi(i.e. principle + interest) rather then installment.
    2. Self Payment: In this you have to pay yourself. You need to pay premium yearly o for first 5 years.

    – Praveen

  4. ashalanshu says:

    Dear Praveen, opening 2 different account is SBI’s working pattern. In my personal opinion, if you can afford, please pay the prem. from your pocket. You ‘ll be paying interest on the same amount for your loan term. is it wise to do so?

    Please think over it.



  5. MILIND SARAF says:

    Dear Praveen,
    I also got sbi maxgain hl sanctioned 6 days in last week of sept 2013. As you said you have recd sms for sanction of hl. in my case i have not even recd sms but i have recd call from sbi official asking both of us me and my wife to come to branch for signing consent letter. They have not given any sanction letter but explain across the table viz. loan sanctioned with two option ie with moratorium and without moratorium period. Rate of int. amount of emi, etc.
    When we have given consent in written they have give appointment after two days for signing the papers , at this time sbi gives letter in which all above details which you asking in your question is mentioned in details. I have applied for 18 months moratorium period hence i have to submit 20 presign cheques. As per rinnraksha is concerned they ask us whether to include the premium in loan or not.

    One thing i would like to tell you dont rely on sms and phones , once you visit the branch personally and my sincere request is go personally not thr your home loan counsellers. I dont know which city you leaves , but i am in pune and my experience with racpc wakdewadi pune is very nice, which i have already shared in the blog.

    Wish u happy diwali in advance.


    1. praveen10 says:

      Hi! MILIND,
      Thanks for sharing your experience. I lives in Hyderabad. Actually issues was the Marketing person who was dealing with me. He was in-experience and have just 3-months experience in RACPC. Yesterday when I went the I meet with other gus and talk directly to Persons who are dealing with SBI Life and Account opening department.
      Now its much explained, thanks for you all for you reply . I will update further my experiences.


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