State Bank of India: Revised Housing Loan Scheme for All Employees..

* Covering all new staff home loan accounts with a group insurance policy as an added welfare measure to all employees.

State Bank of India (SBI) has revised home loan scheme for its employees by incorporating liberal provisions in terms of maximum limits & expanded repayment period across categories.

The scheme was last revised in February, 2008. The latest revision was announced in a corporate circular dated September 30, 2014.

The new home loan entitlements were decided on by a meeting of the executive committee of the central board held in Mumbai on September 19, 2014

The benefit of revised home loan scheme will be applicable to all eligible employees who are on roll as on September 19, 2014. The revised ceiling and interest rates will be effective immediately to all new loans sanctioned / disbursed on or / after September 30, 2014

The SBI is considering the possibility of covering all new staff home loan accounts with a group insurance policy as an added welfare measure to all employees.




The central board noted that the loan limits fixed six years ago have lost relevance due to increase in prices of land and construction materials. Property rates have gone up substantially.

Employees / officers have had to resort to borrowing on commercial rates to complete housing projects or to acquire ready built-up flats / houses.

Existing commercial housing loan may be converted under the new scheme. Option for enhancement of loans is also allowed to liquidate existing loan, subject to conditions.

On promotion, an employee will be permitted to draw up the entitlement to the grade / scale to which he / she is promoted, for repaying loans taken on commercial / public terms.

 

The SBI board noted that a number of employees have raised additional home loan from the bank at commercial rates. Such staff members may be permitted to take the home loan up to their revised entitlement for repaying the outstanding home loan, subject to conditions. This facility is available only as a one-time measure and has to be used up before June 30, 2015.

Repayment for the new loans will be in 360 instalments (224 for principal + 112 for interest + maximum moratorium of 24 months.)

In the case of existing loans, the original repayment schedule of 168 + 72 instalments will continue.


Src: The Hindu
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