State Bank of Hyderabad Loan Against Property

Purpose

General Purpose Loan

Eligibility for State Bank of Hyderabad Loan Against Property

Individual Non-Resident Indians (NRIs) holding a valid Indian passport or person of Indian origin (PIOs) holding a foreign passport.
NRI’s who are holding job at least for 1 year in a reputed Indian Company or Foreign Company or self-employed with a minimum net monthly income (NMI) equivalent to Rs.15,000/- or Net Annual Income (NAI) equivalent to Rs.1.80 lacs.

Nature of Facility

Medium Term Loan

Sources of Income

Income of NRI
Income of spouse: can be included if she/he is a co-borrower (when the property is jointly held) or consents to stand as a guarantor.
Rental and other income: The rental income accruing to the property proposed to be mortgaged to the Bank and also regular income from all the sources can be considered for computation of the eligible loan amount, provided the sanctioning authority is satisfied about the source and proof of the income.

Proof of Income

Any one of the following may be taken as proof of income in case of NRIs

1. Salary Certificate
2. Average remittances (during last 12 months) to NRE a/c of the NRI in the Bank
3. Average remittances (during last 12 months) to NRE a/c of the NRI in another Bank
4. Average remittances (during last 12 months) into SB a/c of spouse or parent maintained with the Bank.
5. Branch Manager’s certificate based on market inquiry/ personal knowledge of applicant’s background.

Loan Amount

Minimum Rs.1.00 lac
Maximum 36 times of NMI in case of salaried persons or 3 times NAI in case of others, subject to a maximum of Rs.1.00 crore.

Margin

50% of the value of the collateral security as certified by approved valuers.
(70% of the market value of the property i.e. distress sale value is to be considered as value of the collateral security).

Rate of Interest for State Bank of Hyderabad Loan Against Property

13.50% p.a. (0.50% below BPLR) As applicable to Domestic Mortgage loans

Disbursement

The loan proceeds can be credited to NRO Savings Bank account of borrower or as per his request. The proceeds of the loan shall not be credited to NRE/ FCNR account of branch.

State Bank of Hyderabad Loan Against Property Processing Fee

1.10%.

State Bank of Hyderabad Loan Against Property Loan Period

Maximum 84 months

Security for State Bank of Hyderabad Loan Against Property

Equitable Mortgage of non- encumbered Residential House / flat, non-agricultural urban landed property, commercial or industrial property in the name and possession of the borrower i.e. self-occupied, vacant or rented/ leased.
In case the property is rented / leased:

1. A copy of the rental agreement executed by the tenant in favor of the property owner to be obtained.
2. A letter of undertaking to be obtained from the tenant stating that all the future payments like rents etc., payable to the property owner will be directly paid to the bank.
3. Apart from the above conditions branches to obtain notarized power of attorney from the property owner authorizing bank to receive rents towards repayment of loan installments.

Power of Attorney

The Power of Attorney (POA) facility is extended to the NRIs under this scheme.  NRIs can execute POA in favor of resident close relative/Professional (Chartered Accountant, etc.) for availing the loan. The Power of Attorney enables the resident holder to apply for, create mortgage and execute documents in favor of the Bank for availing loan under the scheme.

State Bank of Hyderabad Loan Against Property Repayment

Maximum 84 equated monthly installments (EMIs)
The repayment of loan may be made by debit to NRI / FCNR / NRO accounts of the non-resident borrowers or out of inward remittances by the borrowers or out of sale proceeds of immovable property against which such loan was granted.