SBI increases loan limit by ten times
By Joseph Samson
May 21, 2010
Print    Email    RSS   

The largest lender of the country, State Bank of India will soon be increasing the loan limit to people buying land to build a house by ten times. This is an attempt by the banking major to increase its hold in the home loan segment.

As per the proposal signed by the bank, it would be lending Rs. 10 crore to people for buying land. Earlier the limit for the same was Rs. 1 crore, said a senior SBI official.

"Acustomer will also be eligible to avail another housing loan for other housing-related construction on that plot, enjoying the benefit of running both the loans concurrently," said a senior SBI official.

The bank has however set the margin limit at about 35% for loans above Rs. 1 crore. For loans upto Rs. 75 lakh, the margin limit has been set at 20%.

"We have a liquidity of over Rs 40,000 crore; schemes such as this will help us achieve our credit growth targets," the official said.

SBI has recently extended the teaser home loan scheme till June 30.

The bank will however see to it that due diligence does not suffer in the process of increasing credit offtake in the housing segment.

"To minimise fraud risk, two title search reports from different lawyers will be obtained before sanctioning the loan," the official said.



(Comments Posted : 0) Post Your Comments
Show All Comments
 Select a product:

 Select a product:

Admissible deductions under Section 80C
Can we claim tax benefits on home loan and...
Evaluate Hidden costs before buying a house
Make your home loan repayment easier
An insight into the era of teaser loans

PINJORE: CaℒL Giℛℒs In PiNjOrE 09915787550...
PINJORE: CaℒL Giℛℒ In PiNjOrE 09915787550...
how to gate my home loan certificate

Canara Bank earned a profit of 60%. Feb 6, 2015
New Branch of Laxmi Vilas bank at Vijayawada Jan 30, 2015
Home loan EMIs expected to drop down Jan 21, 2015
Corporation Bank received MSME banking excellence award 2014 Jan 19, 2015
Home loan rates set to fall, after reduction in repo rate Jan 16, 2015
News Archive