Syndicate Bank Home Loan

Table of Contents

• Syndicate Bank Home Loan Interest Rates
• Eligibility Criteria for Syndicate Bank Home Loan
• Syndicate Bank Home Loan Schemes
• How to Apply for Syndicate Bank Home Loan
• Document Checklist for Syndicate Bank Home Loan
• Syndicate Bank Home Loan Repayment Methods

 

Introduction

Syndicate Bank was established in 1925 in Udipi. It was initially known as Canara Industrial and Banking Syndicate Limited. It is one among the major and oldest commercial banks in India. The Syndicate Bank was nationalized in 1969 with its headquarters in Manipal.

The bank pioneers with an expertise spanning over 80 years and has firmly rooted itself as a major financial service. The bank has been propagating innovative banking services by understanding the grassroot realities to customers from all sections of the society.

Syndicate Bank is one of the oldest and trusted banking firm. It provides banking and financial services to its customers. Syndicate Bank has various loan schemes for the people to choose from. They are broadly categorized into Retail loans, Business loans, Agricultural loans, Education loans, MSME (Micro and Small and Medium enterprises) loans, and Priority sector loans. The housing loans fall into the category of Retail loans. That is, for meeting the credit requirements of an individual under Personal banking.

Activities like building a house or purchasing one can demand a huge flow of money and drain a person financially. This can be avoided with the help of home loans. Syndicate Bank provides home loans at a very reasonable interest rate too. It begins with an interest rate as low as 8.60 %.

Syndicate Bank Home Loan Interest Rates

Syndicate Bank offers one interest rate. That is the base MCLR, which currently is 8.60 %. The main home loan schemes, SyndNivas and SyndKuteer, follow this rate of interest. Special schemes have additional percentage over the 1 Year MCLR.

Different interest rates for different schemes of home loans are listed as follows.

Home loan schemes	Rate of Interest
SyndNivas	1 Year MCLR
SyndKuteer	1 Year MCLR
Housing Loan (CRE- Commercial Real Estate) (Third house onwards)	1 Year MCLR + 1.10 %
SyndNivas (For purchase of plot)	1 Year MCLR + 4.85 %
SyndNivas Plus	1 Year MCLR + 3.35 %
Synd Delight	1 Year MCLR + 2.85 %
SyndVisharanthi	Fixed-Rate 12.25 %

MCLR stands for Marginal cost of funds – based Lending Rate. The earlier base rate based has been replaced by MCLR for determining the lending rates for commercial banks. This is implemented by the Reserve Bank of India in April 2016.

MCLR is calculated depending on the tenor or amount of time the borrower has to repay the loan. It is an improvisation over the previous base rate, as the calculation also considers the repo rates. MCLR is internal. Banks have to review their MCLR before publishing them very carefully. The Syndicate bank MCLR as published by the bank is as below, with effective from 15 July 2019.

Tenor wise MCLR	Rates
Overnight MCLR	8.15%
One Month MCLR	8.25%
Three Month MCLR	8.45%
Six Month MCLR	8.55%
1 Year MCLR	8.60%

** Rate of interest can be changed as per the change in MCLR, which is subjected to revision from the bank from time to time.

Eligibility Criteria for Syndicate Bank Home Loan

To avail any loan from any of the banks, you have to meet some eligibility criteria. These criteria might differ from bank to bank. Syndicate bank has some basic eligibility criteria.

The eligibility for different home loan schemes is listed as follows.

Home loan schemes	Eligibility criteria
SyndNivas	Non-Resident Indians having an Indian passport or PIOs Resident Indians HUFs Pensioners
Housing Loan (CRE) (Third house onwards)	Non-Resident Indians having an Indian passport or PIOs Resident Indians HUFs Pensioners
SyndKuteer	Individuals of EWS (Economically weaker section)or LIG (Low Income Group) in rural, urban, and metro areas Members of self-help group in rural, urban, and metro areas
SyndNivas Plus	Home loan customers who have satisfactorily made the repayment for 2 years or more.
Synd Delight	Home loan customers who have satisfactorily made the repayment for 3 years or more.
SyndVisharanthi	Senior citizens who have self-acquired or self-occupied house property in India

 

Each of the eligibility criteria can be further explained as below:

Resident Indians

Indians who are residing in India with a minimum age of 21 years and a maximum of 55 years are considered eligible. The maximum age can be relaxed to 60 years in some cases which have the permission of the sanctioning authority. They should further be having a regular income (either salaried or self – employed) to repay the loan with interest. That is, they should be earning a minimum income of25000or- per month.

For properties jointly held by two people, the joint borrowing can be considered.

 

Non-Resident Indians

Non-resident Indians who have Indian Passport and Persons of Indian origin residing outside of India fall into this category. They should have the repayment capacity of loan.

 

Pensioners

People who have taken voluntary retirement and are drawing assured monthly pension are eligible, provided they are not more than 60 years of age.

 

Hindu un-divided families

HUFs are eligible to avail home loans for the construction of the dwelling units which would benefit HUFs and co-parceners.

 

EWS and LIG

People who have their annual income less than 1,00,000or- per annum are considered to be falling under the Economically weaker section (EWS). People who have their annual income between 1,00,000or- and 2,00,000or- per annum fall into the Lower Income Group (LIG).

Syndicate Bank Home Loan Schemes

Syndicate bank offers home loans for people who fall into a variety of category. This way, the bank is making sure that no group of people are left out in having their dream house.

The various types of house loan schemes are as explained below in detail.

 

1. SyndNivas

This is the basic scheme of home loan offered in general for any individual who has a minimum income of 25,000or- per month and who is between the age of 21 and 60 years. This product can be understood in detail with the below-tabulated data:

 

Product Target group	Salaried or self-employed group of people having credit requirements.
Eligibility	Non-Resident Indians, PIOs, Resident Indians, HUFs and Pensioners
Purpose of this product	For acquiring of site and construction of the house on the site. For constructing a house on the land already purchased. For purchase of a readily built house or flat, provided it is not more than 25 years old. For purchase of the flat which is going to be constructed by enlisted Society or Builders For any modifications, additions, or extensions to an existing house, either vertical or horizontal. For renovations or repairs at the existing house. For taking over of housing loans from other financial institutions like Public sector banks, other banks, NBFCs, Army Group Insurance Fund, Cooperative Societies, Housing Intermediaries, etc.
Quantum of loan that can be taken	75, 80, or 90 % of total cost of the house construction or purchase of the readily built house. 70% of the total cost for any modifications to an old house that is 5 years old or more If Salaried applicant, 72 months salary amount. If non-salaried applicant, a 6 time equivalent of 3 year’s average salary. Total deductions should not be more than 60% of salary in the case of salaried applicant and 60% annual income for non – salaried.
Repayment	This cannot exceed 35 years from the time of loan taken or 75 years of age of the borrower, whichever is earlier. (This includes repayment holiday if any)
Rate of interest	1 Year MCLR regardless of tenor or amount of loan
Security	The mortgage of the flat, or house to be purchased or constructed.
Surety	Will be Waived off
Cutback	For the salaried applicant – 60% of total annual income For the non-salaried applicant – 60% of average of the total annual income of the last 3 years As per the assessment of IT returns.
Margin	For loans upto INR 20 lakhs – 10.00% For loans between 20 lakhs and 75 lakhs – 20% For loans above 75 lakhs – 25% For house over than 5 yrs – 30% For purchasing plots – 50%
Processing Fees	For loans amounting up to 25 lakhs – 0.125% of loan amount, with a minimum of 500or- and a maximum of 2500or- For loans between 25 lakhs and 75 lakhs – 0.125% of loan amount, with a maximum of 3500or- For loans above 75 lakhs – flat 5000or-

 

2.  Housing Loan (CRE)

CRE stands for Commercial Real Estate. Below tabulated data will give a detailed explanation of this scheme.

 

Product Target group	Salaried or self-employed group of people having credit requirements.
Eligibility	Non-Resident Indians, PIOs, Resident Indians, HUFs and Pensioners
Purpose of the product	For purchase of a readily built house or flat, provided it is not more than 20 years old. For purchase of the flat which is going to be constructed by enlisted Society or Builders For any modifications, additions, or extensions to an existing house, either vertical or horizontal. For renovations or repairs at the existing house. For taking over of housing loans from another financial providers like Public sector banks, NBFCs, Housing Intermediaries, Cooperative Societies, etc.
Quantum of loan that can be taken	75% of the total cost of the house construction or purchase of the readily built house. 70% of the total cost for any modifications to an old house which is over than 5 years old If Salaried applicant, a gross salary amount equivalent to 72 months. If non-salaried applicant, a 6 time equivalent of 3 year’s average salary. The deductions must not be more than 60 % of salary in the case of salaried applicants and 60 % annual income for non-salaried. Note: The rental income proposed should not be included in arriving at eligibility or cutback criteria.
Repayment	This cannot exceed 35 years from the time of loan is taken or 75 years of the borrower, whichever is earlier. (This includes repayment holiday if any)
Repayment Holiday	18 months of repayment holiday is considered in the case of construction. No repayment holiday in the case of purchase of a readily built house.
Rate of Interest	1 Year MCLR + 0.75 % regardless of tenor and amount of loan
Security	Mortgage of the purchased house or flat or constructed house or flat
Surety or Guarantee	Waived (If or when the need arises, the possibility of obtaining surety of spouse or legal heirs would be explored).
Cutback	For the salaried applicant – 60% of total annual income For the non-salaried applicant– 60% of average of the total annual income of the last 3 years As per the IT return assessment.
Margin	A minimum of 25% is to be maintained irrespective of exposure. The same is 30% for a house aged over than 5 yrs.
LTV (Loan to Value) ratio	Not more than 75%. However, the risk weight is 100% as it is treated as CRE
Processing charges	For loans amounting up to 25 lakhs – 0.125% of loan amount, with a minimum of 500or- and a maximum of 2500or- For loans between 25 lakhs and 75 lakhs – 0.125% of loan amount, with a maximum of 3500or- For loans above 75 lakhs – flat 5000or-

 

3. SyndKuteer

This product or scheme is mainly designed for the people who fall under EWS and LIG. The processing charges are completely waived in this category.

Below tabulated data will give a detailed explanation of this scheme.

 

Product Target group	Individuals belonging to EWS and LIG
Eligibility	Individual borrowers of EWS, LIG and self-help groups of rural, urban and metro areas.
Purpose of the product	For acquiring of site and construction of the house on the site. For the constructing a house on the land already purchased. For acquiring any new or old dwelling units.
Quantum of loan	Up to 5lakhs for EWS Up to 10 lakhs for LIG
Rate of interest	1 Year MCLR
Repayment	This cannot exceed 35 years from the time of loan taken or 75 years of age of the borrower, whichever is earlier.
Security	The mortgage of the plot or house.
Cutback	Can’t exceed 60% of total income.
Guarantee	Third – party guarantee has been waived.
Margin	10%
Processing fee	Waived fully.

 

4. SyndNivas Plus

This product comes under special schemes for the already present housing loan customers.

 

Product Target Group	Already existing housing loan customers
Eligibility	Housing loan customers who have satisfactorily made the repayment for at least 2 years.
Purpose of the product	To meet any personal or business credit requirements of the individuals.
Quantum of loan	The amount equivalent to the value of property at the time of loan sanction or present, whichever is lower minus the outstanding housing loan balance, subjected to a maximum of 3 lakhs.
Security	Extension of mortgage created under the existing housing loan
Rate of Interest	1 Year MCLR + 3.25% per annum, monthly compounding.
Surety or co-obligate	All the people who have joined the housing loan mortgage transaction.
Repayment	Cannot exceed 60 EMI (Equated monthly instalments).
Processing Fees	No processing fees.

 

5. Synd Delight

This one too falls under the special schemes’ category for the existing housing loan customers.

 

Product Target Group	Already existing housing loan customers
Eligibility	Present housing loan customers who hold satisfactory repayment records for 3 years or more.
Purpose of the product	To meet any credit needs of the individuals
Quantum of loan	20 % of housing loan or the amount disbursed. This is subjected to a minimum of 0.5 lakhs and a maximum of 20 lakhs.
Rate of Interest	1 Year MCLR + 2.85 % irrespective of the tenor and the amount of loan taken.
Security	For loans amounting up to 3 lakhs: They shall be considered a clean facility. However, undertaking letter to be provided (Annexure V) to retain the housing loan deed documents until the Synd Delight loan is closed in full. For loans above 3 lakhs: For this, the extension of charges on the existing mortgage of housing loan will be considered as the security.
Documentation	For loans amounting up to 3 lakhs, – clean, DL facility For loans above 3 lakhs, – secured, OSL facility
Repayment	Repayment should not take more than 84 EMIs (Equated monthly instalments), without any moratorium period and be in synchronisation with the repayment period of the loan’s maturity. Remaining repayment period for housing loan will be a minimum of 36 months.
Surety	No surety is required.
Margin	The residual value of mortgage property offered as security to comply with the LTV ratio.
Processing fees	That would be 500or- per lakh.
Documentation fees	No documentation fees up to 2 lakhs For loans above 2 lakhs, 200or- per lakh will be charged with a maximum of Rs. 2000

 

6. SyndVishranthi

This scheme was brought up to aid the elderly. It is specially designed for senior citizens. The SyndVishranthi is a reverse mortgage loan scheme. That is, they can mortgage the house, and the bank will make payments to them.

Below tabulated data will give a detailed explanation of this scheme.

 

Product Target Group	Senior citizens of India
Eligibility	Individuals who have crossed 60 years or more who own self-acquired or self-occupied house or property in India.
Borrowers	Single or joint in the case of a living spouse.
Joint Borrowers	In this case, the married couple jointly hold names in the loan irrespective of whoever among them be the property owner. The first borrower should be minimum 60 years of age, and the spouse should be a minimum of 55 years of age.
Eligible Residential Property	The borrowers should be residing in the self-acquired or self-occupied house against which the loan is availed. They are required to inform the bank in case they move out of the property, and it ceases to be their permanent primary address. NRIs and PIOs are not eligible for this scheme Ancestral or commercial property will not be considered.
Title of the Residential Property	Borrowers should have a clear and transferable title of the property in their names. Title verification and search report for 30 years have to be obtained. The property against which the loan is availed should not hold any encumbrances. If the property is taken with the help of a housing loan, RML (Reverse Mortgage Loan) is still permitted. However, the balance of housing loan will be paid by the lump sum of the RML.
The residual life of Property	It should be at least 20 years in the case of a single borrower and 25 years in the case of joint borrowers where the spouse is below 60 years of age. The architecture signed certificate will be required to be obtained for the same in addition to the valuation of the property.
Security	Equitable or simple mortgage of the property is considered as a security.
Tenor	Minimum 10 years and maximum 20 years or till the death of the borrower(s), whichever is earlier.
Disbursement or periodicity of availing loan	Either monthly or quarterly payments to the joint SB account of the borrowers, which is operated by E or S (Either or Survivor). A lump-sum payment can be obtained not more than 20% of the total loan amount with a cap of 15 lakhs. This can be taken only once during the tenure of loan. It is further subjected to conditions of special cases like medical emergencies, up-gradation or renovation of the house, or repayment of an existing loan on the property. Disbursement shall be at the discounted value of sanctioned loan amount or the eligible lump sum disbursement amount. In the case of death of the first borrower, the disbursement will continue to be made to the spouse who is the joint borrower.
Quantum of loan	Independent House	Age of borrower	Loans as a proportion of the assessed value of property
		60 – 65 years	70%
		66 – 70 years	70%
		71 – 75 years	75%
		Above 75 years	75%
	Flats	Age of borrower	Age of flat
			< 2 years	2 – 5 years	5 – 10 years
		60 – 65 years	60%	55%	45%
		66 – 70 years	65%	60%	50%
		71 – 75 years	70%	65%	55%
		Above 75 years	75%	70%	60%
	Minimum loan amount 5 lakhs Maximum loan amount, for independent houses, it is 100 lakhs, and for flats, it is 50 lakhs.
Repayment or Settlement	The loan shall become due and payable only when the last surviving borrower of loan dies or opts to sell the property or moves out of the property permanently.
Foreclosure	Foreclosure can be brought into picture in either of the below cases: The borrower(s) hasorhave not stayed in the property for a continuous period of over a year. The borrower(s) hasorhave failed to pay property tax or maintain insurance or maintain and repair the property.
Prepayment	No prepayment penalties are considered. Prepayment charges of 1% have to be paid in the case of a takeover by other banks or financial institutions.
Valuation or revaluation of the property and option to adjust payments	Revaluations can be done at an interval of 3 years. There is an option for the borrower to revise the periodic or lump sum amount every 3 years. However, the bank may decide to revise the amount anytime earlier than 3 years. LTV ratio should not be more than 90% at the time of maturity.
Rate of Interest	Fixed at 12.25% per annum
Processing fees	0.5% of loan amount with a cap of 10,000or-
Right of Rescission	Should cancel the transaction within 3 business days. Processing fees will not be refunded.
Insurance and maintenance of the property	The borrower is expected to maintain the property in good condition The borrower should have the property insured against fire, earthquake and other calamities. The bank can take care of the premium for the insurance, and the same shall be taken from the loan amount. The borrower should pay the property tax.

 

Now that all the housing loan schemes are covered to the most detailed way as possible let us look at how one can apply for the housing loan at Syndicate Bank.

How to Apply for Syndicate Bank Home Loan

You can either apply online through the bank’s website or go to any nearest syndicate bank branch and request for home loan application. You can alternatively download the application form the portal and fill it and hand it over to the bank representative along with all the documents required.

Document Checklist for Syndicate Bank Home Loan

Certain documents should be produced along with the completed application form of loan to apply for any of the above-explained home loan schemes. Below is the list of documents to be enclosed according to a different category of people.

 

1. Salaried borrower (in the case of both applicant(s) and surety(ies))

• Self – attested PAN card copy
• Three passport-sized photographs
• Self – attested address proof (like Aadhar card, driving license, voter Id, telephone bill, electricity bill, etc.)
• Self – attested copy of the Employee ID
• Self – attested salary slips of last 6 months
• Self – attested one-year statement of the bank account where the salary is credited every month.
• Self – attested copies of Form 16, ITAO, or IT returns of the last three years
• Past and present details of employment of the applicant with sufficient proof

 

2. Non-salaried borrower (in the case of both applicant(s) and surety(ies))

• Self-attested PAN card copy
• Three passport-sized photographs
• Self-attested address proof (like Aadhar card, driving license, voter Id, telephone bill, electricity bill, etc.)
• Self-attested one-year statement of the bank account
• Self-attested  copies of IT returns for 3 years with an income statemen.
• Copy of balance sheets (audited) or profit & loss accounts
• Business Proof (Like GST, VAT, etc.)
• The applicant should have gainful employment in a profession or business for a minimum of 3 years with a valid proof of income related to profession or business on merits depending on income generation, repaying capacity, etc.

 

3. NRIs or PIOs

• Self – attested copy of visa or passport
• Three passport-sized photographs
• Self – attested work permit or appointment order or job contract
• Power of attorney according to the format of the bank  duly executed in  presence of officials of the  Consulate or Embassy in India
• Self-attested latest 3 months’ salary certificates with deductions or  3 years ITR.
• Last 2 months Self – attested bank account statement in foreign currency
• Self-attested statement of Savings account for latest two years
• Self-attested copy of margin money proof form NRE or NRO account
• Declaration from the NRI stating that the house or property will be used by self after returning from abroad
• Declaration from NRI on the proposed time period of abroad stay

 

4. Private Property:

The title deeds should be submitted

Along with the documents mentioned above, some documents are required for specific schemes. Those are a legal opinion by lawyer, valuation or estimation report by the evaluator.

In case if the manager agrees for Loan, then the customer has to do charge creation of the property in the name of the bank at the sub-registrar office (Registered mortgage).

For a bank to sanction any loan, they always check the credit score of the applicant. A credit score is measured by how regular an individual is in paying off his or her loans or credit card bills.

Syndicate Bank Home Loan Repayment Methods

The repayment of loan shall be made in three following ways:

1. Standing Instruction:

The monthly instalment is directly debited from your syndicate bank account automatically by the end of the borrower’s monthly cycle. This is the best mode of payment as there is no chance of you forgetting to make the payment.

2. Electronic Clearing Service:

In case you want the amount to be debited from a bank account that is not in Syndicate bank, you can use this mode. It takes care of automatic debit of the amount from the specified account by the end of borrower’s monthly cycle.

3. Post – Dated Cheque (PDC)

The borrower, from a different bank account can submit the Post – Dated cheque that is not in Syndicate bank in the nearest Syndicate Bank loan centres. In this mode, you will have to submit a new and recent set of PDCs in manually promptly.

It is always recommended to either go for ECS or SI type of repayment.