[superamerica]

Originally Posted by NetfreakBombay

Not a problem.

Within 15 days, write to SBI Life (not SBI) and cancel the policy.

If you cancel any life policy within 15 days (free look period) you don't have to pay even a single rupee.

Is this possible? Since what we are offered is not the usual term insurance but a reducing principal group term insurance of SBI Life called Dhanraksha.

[superamerica]

Originally Posted by joecherian

Hey, that is something new. I was forced to take the policy because I didn't opt for the guarantor. Now, if I cancel the policy, will I be asked to furnish a guarantor for the loan ? How does this work ? I haven't got the policy in my hand and hence what reference can I give to cancel the policy ?

I havent got my policy too. But if the cancellation is possible, then the free look period begin the day you receive the policy in hand and is valid for 14 days from then.

[NetfreakBombay]

Originally Posted by superamerica

Is this possible? Since what we are offered is not the usual term insurance but a reducing principal group term insurance of SBI Life called Dhanraksha.

Yes it is just another life policy. Only difference is cover reduces every month (or year depending on product).

Free look applies to these policies.

Originally Posted by joecherian

Hey, that is something new. I was forced to take the policy because I didn't opt for the guarantor. Now, if I cancel the policy, will I be asked to furnish a guarantor for the loan ? How does this work ? I haven't got the policy in my hand and hence what reference can I give to cancel the policy ?

Policy and loan (and need for guarantor) and NOT RELATED.

SBI employees have "cross-selling" targets to sell other SBI products. Though, it is illegal to do so.

So if you want, you can go ahead and cancel the policy once you have loan + policy in hand.

Just make sure you are in "free look" period.

[joecherian]

Originally Posted by NetfreakBombay

Policy and loan (and need for guarantor) and NOT RELATED.

SBI employees have "cross-selling" targets to sell other SBI products. Though, it is illegal to do so.

So if you want, you can go ahead and cancel the policy once you have loan + policy in hand.

Just make sure you are in "free look" period.

In my case the premium amount is already deducted from the sanctioned loan amount.

Regarding the "free look" period, when does it start ? Is it when I signed the policy application or when I get the actual policy doc in hand ?

[joecherian]

Update from my end : Gave the cheque to AXIS bank and have formally closed the loan account. I will be getting the original docs in a months's time ( though I am not sure why it takes 30 days to give the document). Since my wife's salary account is with Axis, there was no prepayment charges and hence, at the end, turned out to be a good deal.

[NetfreakBombay]

Originally Posted by joecherian

In my case the premium amount is already deducted from the sanctioned loan amount.

Regarding the "free look" period, when does it start ? Is it when I signed the policy application or when I get the actual policy doc in hand ?

Not sure about that. It would be best to call SBI Life and get a clarification on this.

[joecherian]

Let me bump up this thread again.Can anyone tell me exactly as to how does the SBI Easy home loan works ? I was told it is some sort of overdraft account where in you can deposit any amount you can afford. My doubts are

1. if I deposit x amount, how will it affect my remaining payment ( I would assume EMI remains same but my loan might closed much earlier

2. if I deposit x amount this month, can I withdraw that amount in future for any personal purpose ? and then deposit the amount back , may be the next month ?

3. if statement (2) above is true, does that mean I can withdraw the amount from my overdraft account and use it ( by paying an interest rate of 8%) or, is the withdrawal from overdraft account charges a different interest rate ?

[superamerica]

Originally Posted by NetfreakBombay

Not sure about that. It would be best to call SBI Life and get a clarification on this.

Joe, did you get your sbi life policy? And did you attempt to cancel it too?

[joecherian]

no, i am yet to get the policy in hand

[superamerica]

Originally Posted by joecherian

no, i am yet to get the policy in hand

Figured out that we will never get to know about the policy at our home address. I came to know it was despatched to the home loan branch and we will have to direct our enquiries there.

[mkh]

Long time since none posted here, and don't see anywhere else where this topic is discussed. I am considering SBI for a loan.
Since the project is approved, i assume i do not need to go for evaluation and give documents etc?
Second- they are asking for mandatory General Insurance to be taken, and none can tell whats the premium. I asked the loan manager and he did not know, said should be less than 10K. When i called up SBI general, they said 20 K for the loan amount i am taking.
Can someone who has taken it recently share the process? I know i give the app, processing fee cheque and my income documents for approval. Then they need property docs but since this property is approved by SBI not sure if they will ask those?

[penpavan]

Originally Posted by mkh

Long time since none posted here, and don't see anywhere else where this topic is discussed. I am considering SBI for a loan.
Since the project is approved, i assume i do not need to go for evaluation and give documents etc?
Second- they are asking for mandatory General Insurance to be taken, and none can tell whats the premium. I asked the loan manager and he did not know, said should be less than 10K. When i called up SBI general, they said 20 K for the loan amount i am taking.
Can someone who has taken it recently share the process? I know i give the app, processing fee cheque and my income documents for approval. Then they need property docs but since this property is approved by SBI not sure if they will ask those?

I got a loan from SBI recently. So I guess I can share what I know.
Firstly, when you say project is approved by SBI, you may have to furnish a letter that SBI will have given etc.
The Insurance is mandatory. And that too from SBI life only. You cannot ask for some other insurer. The premium will be told to you when you apply for loan. If they dont, you will come to know when you get the loan sanctioned. In fact it is part of the process. When your loan gets sanctioned it will be in the form of :
Loan Sanctioned = Loan applied + SBI life premium.
You will be offered choices for one time payment or yearly installments of the insurance premium.
Everything about SBI home loan will be processed at their RACPC unit and the SBI life guys will also be there.

Remember that the home loan process can vary on case to case basis. It all depends on who is processing your application how friendly he is etc. So dont be surprised if they ask you for builder docs again even if it is pre-approved.

There is always a crowd out there at SBI RACPC. You will wonder how they track all that. But it works amazingly well. Max-Gain account is the one you should go for, for the benefits you cannot imagine.

[mkh]

Originally Posted by penpavan

I got a loan from SBI recently. So I guess I can share what I know.
Firstly, when you say project is approved by SBI, you may have to furnish a letter that SBI will have given etc.
The Insurance is mandatory. And that too from SBI life only. You cannot ask for some other insurer. The premium will be told to you when you apply for loan. If they dont, you will come to know when you get the loan sanctioned. In fact it is part of the process. When your loan gets sanctioned it will be in the form of :
Loan Sanctioned = Loan applied + SBI life premium.
You will be offered choices for one time payment or yearly installments of the insurance premium.
Everything about SBI home loan will be processed at their RACPC unit and the SBI life guys will also be there.

Remember that the home loan process can vary on case to case basis. It all depends on who is processing your application how friendly he is etc. So dont be surprised if they ask you for builder docs again even if it is pre-approved.

There is always a crowd out there at SBI RACPC. You will wonder how they track all that. But it works amazingly well. Max-Gain account is the one you should go for, for the benefits you cannot imagine.

SBI life is not mandatory as i was told, that is very high- about a lac premium one time. SBI needs this:
"Property to be covered with the General Insurance after disbursement of loan for the market
value, the applicable premium needs to be borne by the borrower."
If suppose life cover is mandatory- then one has to shell out about a lac which makes going with SBI of no use?
The builder gave list of banks where its approved hence i know- i have no issues going with SBI, only grey area is this insurance. In the evening i got it clear that its about 20K or so for property insurance that is needed and that too they add in the loan i suppose.
Is a visit to RACPC a must?

[NetfreakBombay]

Originally Posted by mkh

SBI life is not mandatory as i was told, that is very high- about a lac premium one time.

Yes it is not mandatory to purchase it from SBI life. However, you will have to fight SBI branch to push it through.

Originally Posted by mkh

"Property to be covered with the General Insurance after disbursement of loan for the market

That is a requirement with all home loans. However, if your property is an apartment then it is not required since society is anyways insured for General Insurance.

SBI tries to push through two additional products to hapless buyers:

1. General insurance for property
2. Life insurance for purchaser (to cover loan principal in case of death)

Though it is much better to buy from outside since you will get better rates.

[shipnil]

Originally Posted by mkh

Long time since none posted here, and don't see anywhere else where this topic is discussed. I am considering SBI for a loan.
Since the project is approved, i assume i do not need to go for evaluation and give documents etc?
Second- they are asking for mandatory General Insurance to be taken, and none can tell whats the premium. I asked the loan manager and he did not know, said should be less than 10K. When i called up SBI general, they said 20 K for the loan amount i am taking.
Can someone who has taken it recently share the process? I know i give the app, processing fee cheque and my income documents for approval. Then they need property docs but since this property is approved by SBI not sure if they will ask those?

I have also borrowed from SBI. I'll try to put in my views.

1. Most of the time project approval means nothing at SBI. You have resubmit all the documents. My builder had given me two big (office documentation) size files as property documents.

2. The premium depends on the value of property (not the loan amount) and the tenure. For a property of 64L, I was required to pay 32K one time premium that covered the property for 20 years.

3. Process wise, first SBI will check your eligibility for the loan amount requested. Then they'd get the property documents verified from their legal dept. Somebody would physically visit the site to see the progress. Once everything is in order, you'd be called to RACPC for signing of many legal documents. You'll give 3 blank checks to SBI. In a weeks time the disbursement will be made to builder. If yours is under construction property, the payment will be done as per construction progress.

The life insurance is not mandatory. But the agent has a target to achieve and also gets a good commission in insurance policies. Hence the push. But you can always refuse as you have already mortgaged the property to bank and hence the bank need not worry about anything bad happening to you. They can always sell the property and recover the amount.

Visit to RACPC is must.

The whole process may take 1 to 2 months. Some people are stuck for 3 months but still under process.