Sundaram BNP Home Loan

Table of Contents

• Sundaram BNP Home Loan Interest Rates
• Eligibility Criteria for Sundaram BNP Home Loan
• Sundaram BNP Home Loan Schemes
• Sundaram BNP Home Loan for NRI or PIO
• How to Apply for Sundaram BNP Home Loan
• Document Checklist for Sundaram BNP Home Loan

Introduction

Sundaram BNP Home Finance is a Chennai based JV enterprise between a NBFC Sundaram Finance Limited and BNP Paribas Personal Finance with a strong focus, primarily in South India. Presently they are aiming to expand their existing areas of operations with a network of 100 branches spread across the country.

SHFL has created state of the art infrastructure which has helped them to adopt reliable customer friendly procedures through the optimum use of technology.

As a part of their business strategy their penetration in the retail loan market is spearheaded by offering home loan solutions of diverse proportions to meet the requirements of every strata of the society. They espouse the following key features.

• Contribute shelter related solutions transparently.
• Stick to a customer friendly approach.
• Quick turn over time and better appreciation of customer needs.

Sundaram BNP Home Loan Interest Rates

Interest rates are as of 2019

While you finalize a plan for a dream home, you need to assess the financials thoroughly and prepare a draft proposal. An important factor in the finance arises from the cost of capital which in simple words may be described as the rate of interest and upfront charges to be shelled out by you for the home loan. Thus the rate applicable for home loan is:

The processing charge is recovered up front but there could be a host of other charges applied from time to time as the situation emerges. The key features for the application of interest are:

• The interest is applied on the monthly reducing balance of the principal consequent to the adjustment of the EMI.
• The bank offers floating or variable rate of interest in the home loans in its bouquet.

Eligibility Criteria for Sundaram BNP Home Loan

Sundaram BNP offer loans for diverse reasons as solutions for all sorts of possibilities for which you may be seeking a home loan. It is imperative to learn what areas are covered by the home loan and exactly where you fit in the scheme of their various home loans. The determinants for your eligibility are tabulated as under:

• Age
• Monthly Income
• Monthly expenses
• Qualifications
• Employment or professional status.
• Your savings pattern.
• Your assets and liability statement.
• Credit score.

Sundaram BNP also offers two other loans to resident Indians and similar loans to NRI with the same eligibility criteria applicable across board for them. The two other home loans are:

• Plot Loan: It is a loan when you intend to purchase a plot of land to pursue your dream of constructing your house over it.
• Take Over and Top Up Loans: This is another loan which is beneficial to many. Through this credit facility, an existing home loan with another financial institution is taken over for reasons of getting a better deal in the rate of interest and a lower EMI. The bonus with takeover is that you become entitled for a top up loan to add over the loan amount to fund the gap if any.

Sundaram BNP Home Loan Schemes

Having come this far, it is now time to recapitulate the various features discussed so far and the cost of capital feature, especially the interest on the loan amount.  The home loans they offer are all term loans with variable floating rate of interest. The maximum tenure of their home loan is 20 years. Sundaram BNP home loans are eminently suited to variety of purposes and covers vast cross section of society.

You have already got familiar with the home loans that make Sundaram BNP bouquet so colorful. A little more insight into the working of the parameters of the home loan will be in your interest helping you to reach an informed decision.

Main Home Loan by Sundaram BNP

Home Loan: It is an all-encompassing comprehensive home loan solution covering almost the entire gamut of purposes that is catered to buy a home loan. Thus it caters for the following:

• Purchase of ready to occupy new house or apartment.
• Self – construction of a residential unit on a pre-owned plot of land.
• Home extension which becomes a necessity with passage of time. You may be in need of additional space requiring extra rooms. You may need additional kitchen or washroom facilities. Or in most cases construction of an extra floor, to meet the demands of your growing family and your financial capacity. This loan provides a solution to your need in full.
• Home improvement is another purpose commonly approached by you through a home loan. The canvas for this type of loan is vast encompassing restoration, renovation, repairs, maintenance, beautification etc. to name a few. You can even add new furnishing to your home and do the interior afresh to give your dream house a brand new look.

In addition to this loan, there are two other loans in their bouquet of home loans which need special mention. They are:

Plot Loan

By taking this loan you can buy a piece of choice plot, on which you desire to construct a suitable residence of your own. There are riders attached to this loan, unlike the other loans pertaining to the time frame of construction.

Take Over Loan

This loan is sought for two compelling reasons. The first being lowering the cost of capital by a lower rate of interest, and second due to location advantage. This loan helps in paying off the existing loan so that they can transfer the liability to the bank in consonance with their own policies. As a bonus, Sundaram BNP offers you a top up loan to augment the fund need, if you so desire, and use as per your choice.

Sundaram BNP Home Loan for NRI or PIO

Sundaram  BNP boasts of a robust NRI clientele. Among the host of facilities for them, they also offer housing loans.  NRI customers are discerning by nature earning their income in hard currency. This is advantageous to you as well as the bank, as the conversion fetches handsome dividends. Therefore, all the facilities of the home loans offered to the resident Indians are also extended to the NRIs to cater to their need of home ownership. Most NRIs view this as an investment opportunity, serving multiple goals. Firstly they create an asset, the value of which is bound to appreciate in future considering the trends. Secondly, they are able to provide decent accommodation to their parents or close blood relations as a social necessity.  Thirdly, it acts as a backup for later years, if they repatriate and spend their retired life here.

Housing Loan for High-net-worth Individuals:

The question to ask as to who belong to the category of high-net-worth individual gets an ambiguous response. It is geography centric depending on the country of residence. In lay man’s terms one can safely surmise that an individual with abundant liquid assets at his disposal is deemed to be high-net-worth individual. It is beyond doubt to infer that the individual is likely to propose high cost projects. It will definitely impact Sundaram BNP home loan portfolio without the perils of default.

Quantum of Loan permitted under this scheme at Sundaram BNP:

Since there is no premium housing loan, the normal admissibility of the quantum is to be reckoned. However, it needs mention that there is no prescribed higher limit of home loan.

Sundaram BNP Home Loan for NRI:

It is already discussed that there are no special differences in the housing loan for resident Indian and the NRI. The major difference if any lies in the loan tenor which is restricted to 15 years in the case of NRI. Needless to mention, the NRIs are entitled to seek all types of home loan solutions in their bouquet. According the following grid highlights only the differences, keeping the matching eligibility norms aside.

How to Apply for Sundaram BNP Home Loan

There are a number of ways by which you can apply for a suitable home loan.

• Online: The online process only asks you for some basic information. It  authorizes the bank  to call on you to take the matter forward,
• Download: You can download the application from the portal and send to any branch near you along with enclosures for further action.
• Personal Visit: You can visit a branch near you with your income documents and the bank shall be more than eager to assist you with the application process after ascertaining your eligibility.  Presently they have a network of fully automated and integrated 100 branches to assist you for obtaining a home loan of your choice and needs.

Document Checklist for Sundaram BNP Home Loan

You must remember that the list of documents cover majority of the requirements, but the bank may seek additional documents as and when necessary.