Having a home of our own is a dream come true for most of us. But buying a home involves years of savings. In addition, if you are in the early years of work life, then getting a home loan (which is a lump-sum amount) is really tough.

In this situation, the State Bank of India i.e, SBI Flexipay Home Loan comes to rescue. It is a great benefit for the young earning individuals.

Attributes Of SBI Flexipay Home Loan

• Has the option to pay only the interest during the moratorium period(pre-EMI period) and thereafter you can pay the moderated EMIs based on the principal amount. The moratorium period ranges from 36-60months.
• It provides 20% more eligibility for a home loan on the same income than other products of home loan.
• It has the benefit of charges of interest on the daily reducing balance.

Eligibility Criteria for SBI Flexipay Home Loan

• The applicant should be a salaried individual.
• Age of the applicant should be between 21-45 years.
• Applicant should have a minimum of 2 years of work experience.

Compulsory Testimonies Required

Personal Documents

1. Duly filled form of SBI Home Loan.
2. Id proof (AADHAR Card, PAN Card, Driving License)
3. Passport size photographs.
4. Residence proof (Any utility bill- Electricity or Gas bill)
5. Statement of Personal Assets and Liability.
6. Payslip for last 6 months.

Statement of A/c

1. Bank statement for last 6 months.
2. The loan a/c statement for last 1 year, if any previous loan is taken.
3. Signature Identification from the banking institution.

Statement Of Property

1. Bank a/c statement of all the payments made to builder/seller.
2. Certificate of Occupancy (for ready to move property)
3. Electricity/Maintenance Bill/Receipt of Property.
4. Stamped Agreement for Sale/Allotment letter.
5. Construction permission (when applicable)
6. Conveyance deed (for a new property),
7. Approved plan xerox blueprint copy and Registered Development Agreement of the builder.

Documents for Guarantor (Wherever required)

For Non-Salaried Guarantor

1. Address and Residence proof as above.
2. Passport size photographs.
3. Proof of business address and license details.
4. Statement of Personal Asset and Liability.
5. Profit & Loss a/c and Balance Sheet for last 3 financial years.
6. Qualification details (for professionals- Doctor, Lawyer etc)

For Salaried Guarantor

1. Salary slip of last 3 months.
2. Copy of IT return for last 2 financial years or a copy of Form 16 of last 2 years.

Pros of SBI Flexipay Home Loan

·         Flexible EMI

SBI Flexipay Home Loan provides an option to primarily pay only the interest during the moratorium period. This reduces the burden of paying more in the initial period of 3-5 years. After that, one can start paying the regular EMIs and it will gradually be increased by SBI.

·         Higher Eligibility

SBI Flexipay Home Loan provides the loan to individuals even in their early working years. If the individual has a track record of steady and uprising career, the bank assumes that it will continue similarly in the future. So, it is mandatory to have a steady income.

Cons of SBI Flexipay Home Loan

• For SBI Flexipay, the applicant pays only the interest rates for the initial 3-5 years. So, he pays a lump-sum interest already, when he actually starts paying the principal amount. So, ultimately, the borrower pays more interest rates than other home loan products.
• Tax benefit is available only for the principal repayment. That means, there is no tax deduction during the moratorium period.