SBI Home Loan 2

About SBI Maxgain scheme

What is it?
If you have some money, you can transfer it to your bank loan account. Interest will not be calculated on that amount. You can take out this money anytime you need it.

How is it useful?
In savings bank you get 4%-6% interest. FDs will give you ~9% (but have locking period). If you keep in SBI Maxgain, then you get ~10% interest (same as bank home loan rate).

When to not to use it?
If you can invest in other places where you get more than 11%, then dont put money in this account

What to do?
After house registration, we need to go to RACPC and get a form. This form will tell that house registration is done and now our bank account can be converted to OD account (Maxgain account).

Take this form and give it to the Bank (not RACPC). The bank will convert your account to OD account. You will receive a cheque book (blue color for current account).
If you need online access, you can get it. But make sure you are comfortable as huge amount of money is saved.

More to add later!

SBI Home Loan

This is a looooong process. And also process may change in course of time.

Buying a house can be broken into the following steps.

1. Identify the house
2. Documents verification
3. Downpayment
4. Applying to loan
5. Loan approval
6. Part payments
7. Registration
8. Occupying the house
9. After-effects

Terms 

RACPC : The processing office of SBI

Market price :The actual price a person buys from builder

Government Guidance value : In each area, govt fixes some minimum value. Say MG Road, 15000, Whitefield 4500. It depends on apartments, location, facilities, etc.


STEP: Identifying a House
    This depends on your choice - budget, location, number of bedrooms, facilities, etc. You need to search a lot of places, take suggestions, compare different builders. Ask feedback from owners of previous projects. DO NOT LISTEN to MARKETING PEOPLE.

STEP: Documents you need to ask and verify

• Ownership of the land
• Mutual agreement between builder and land owner, if applicable
• Road connection to main road
• Approved plan of the construction

Get these documents and get them verified by a lawyer outside.

STEP: Downpayment

In order to get the loan processed, you need to make min of 5%. However banks generally recommend having 10% down payment.

So if your house is 50L, bank will expect you to pay 10L upfront and sanction loan for 40L.


Loan Process

It is a 2 sided process. Bank has to approve you and also the project.

1. Your approval depends on your salary, stability, assets, marital status, other EMIs, company, nature of job, previous credit history
2. Your builder approval depends on original documents, his history, etc.

1. Check with your builder whether they have approval from SBI. If not then it will take more time than expected. SBI has to approve the builder first.

STEP: Applying to Loan

1. You need to have a SBI savings account. So keep it ready. If it is joint account, both need to visit the bank.
2. Once you have the Savings account, fill the loan applicatio. Most of the other documents your builder will prepare. (Sale agreement, etc)
3. The bank will start the verification process of you and your builder. Once it is ready, they will call you. You will also get an SMS with the loan sanctioned. (In some cases you may not get the full amount for which you applied)
4. You need to visit the RACPC with any supporting documents. You need to sign a lot of documents.

Insurance

95% of the cases, SBI will push for insurance. Even you have lot of LIC policies, they will push for it. For a loan of 40L, 15 years, total premium will be 75,000.  15,000 for 5 years.

• You can pay the premium at one shot. In this case it will be less
• You can pay the premium in installments. 5 years option is provided.

You can pay the premium either directly or from the loan part. If it is from loan, they will sanction additional amount (subject to your paying capacity)

STEP: Payments to Builder

You and your builder will have an agreement on the payment deadlines. As soon as it over (say completion of 5th floor), builder will send you a release form. You need to sign that document. This document will be sent to SBI. Then bank will release the amount to the builder.

STEP: Registration

How to calculate the registration cost
Major components: 1% registration fee + 5.6% stamp fee
Extras : 15k (depends on your bargaining skills / agent)

Example: If your house is 1260 sft and market guidance value is 1750/-
                Price = 22L + Car parking = 25L
                Registration cost = 25,000
                Stamp paper        = 1,40,000

Registration Process

For registration, you need to ask available date from SBI and book an appointment. Go to RACPC, fill the form with registration date. You need to sync with builder before choosing date.

In some cases, you will get a slot on preferred date
* You started the process late. Normally slots get filled before 7-10 days.
* If it is auspicious day, then all slots will be over very fast.
* If taxes are increasing, then people will rush before deadline (happened Aug 1 2013)

In these cases, you can get it registered by yourselves.

The following DDs need to be taken on the name of SUB-Registrar, <Place> (Shivajinagar, etc)

1. Stamp paper cost (5.6%)
2. Registration cost (1%)

If you are doing registration by yourselves, then 2 more are required

1. MoD (Memorandum of Declaration) fee (= 1% of your loan, rounded to 100. Suppose loan is 40,68,000. Then fee = 4100) 
2. MoD registration fee = (1% of your loan)

 Either these DDs can be obtained by yourselves or from the RACPC (from your home loan).

E stamp paper

In Karnataka bond papers are banned. Now a days everything is on e-stamp paper.

No need of any broker. Simple process. Takes 15 minutes.

• Go to the bank or e-stamping center (Check in website)
• Fill the form (very simple)
• Name
• Purpose
• Amount
• Give the form, pay cash.
• Wait for some time.
• They will call you once the e-stamp paper is ready.
• Get it. and fill what is required.

House Rental Agreement

This concerns more in Bangalore!

• Rents are more compared to other cities (except Mumbai)
• Advance is 10times (some exceptions these days)

Tips:

• Get both your and your wife names on the agreement. Useful for address proof at some later stage. (only if married!)
• Get your agreement on e-stamp paper worth Rs. 100/- if deposit is close to 1L or 200/- if more than 1Lakh. (2013)
• All terms and conditions to be written on the agreement.

Before e-stamp paper, people get the agreement on a normal stamp paper (worth 20/- or 50/-). Get it notarized. Costs around 100/- to 200/-

Kids Day Care

Some charges around Kundalahalli.

Klay                         :  40,000    11,000
Klay for Qualcomm : 25,000    9,350

Kindle Kare

Application Fee     300
Registration Fee  5000
Monthly Fee        6400
Refundable Deposit     5000

They have fees for Less than 6 hours and Less than 3 hours

Petrol Bunk Cheats

By the time you read all the ways, either you will get faint or your mind will turn cruel!! Beware

• Filling pump will have 2 meters - litres and rupees
• They have mechanism to show the last bill.
• The handle used to fill fuel is called "gun". Some guns have meter on them

1. Most famous one: DISTRACTIONS
1. You ask for 1000.
2. They will come in between with lot of options
1. Air pressure in tyre is low
2. Card swipe
3. Ask questions like mode of payment
4. A damaged note asking for replacement (if you have given cash)
2.  Card Skimming
1. This is getting popular these days. Your card will be "cloned" and used it outside India. Nowhere you can track them. So better don't use debit cards with high amounts
3. Partial fills
1. You ask for 500. First he fill 100 and says done. You ask for 500. Then he fill till 400 and stops. He says "Sir, first 100 and then 400 now". But in fact you got only 400 wroth of fuel.
2. You ask for 500. First he acts as if he filled 100, but shows the previous bill. Then he fills 400. You have to pay for 500 and get only 400.
4. Illusion
1. Some filling guns have a meter and it will have .00 also. If we ask for 500 rupees, he will fill for 5.00 (five RUPEES only). Since the gun will be upside down, we may not notice.
5. Manipulation
1.  While filling in the end, they touch the gun and stop the petrol (at the end). If you ask for 500, he starts filling. When it is at 450, he will handle the gun and slows down the flow. Machine will pump 500 of fuel. 450 is inside tank, 50 is in the pipe (coming on the way). Instead of completely waiting, the person will remove the gun immediately.
6. Change
1. You fill for 500. You give 1000/- note. The person needs to return 500. He will take out 100 notes and keep counting and give you 500. But when you count it will be 400. The person actually counted a note two times.
2.  You fill full for 100. You give 500. He gives back 400. When you go home and count it is 350. One of the 4 notes is 50/-.
7. Payback
1. Applicable for Payback users only and tank full.
2. He will ask if you have Payback.
3. You ask for tank full and you see the amount is 2000+ (2100 is actual)
4. First he will get the Payback card with 2200 rupees. 
5. If you notice the amount, he will get card swipe with 2100
6. If you don't notice the Payback slip, then he will swipe your card with 2200

Hints

•  Ask for some odd numbers. 350 or 420 instead of  500 or 100
• Come out of car. Don't sit inside
• Ask for auto cut-off

What you should do?

1. Learn a bit of local language (Kannada in this case)
2. Get out of your vehicle, lock it
3. Go near the nozzle 
4. Tell clearly you want this amount
1. Diesel / Petrol
2. Normal / Special
3. Quantity / amount / full-tank auto cut off
4. Payment by cash / card
5. Wait till the filling is complete. ALLOW NO DISTRACTIONS
6. Check BOTH price and litres. Both should match.
7. Close Fuel cap
8. After this do payment
9. Collect bill
10. Check if your original card is returned
11. Move on