South Indian Bank Home Loan

Table of Contents

• South Indian Bank Home Loan Interest Rates
• Eligibility Criteria for South Indian Bank Home Loan
• South Indian Bank Home Loan Schemes
• South Indian Bank Home Loan for NRI and HNI
• How to Apply for South Indian Bank Home Loan
• Document Checklist for South Indian Bank Home Loan

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:

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.

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:

South Indian Bank Home Loan Schemes

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

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:

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.