How to Transfer Home Loan to SBI

Yuvraj carries home loan of Axis Bank. Yuvraj was paying interest at rate of 10.75% on his home Loan. Yuvraj recently saw that State Bank of India (SBI) is offering home loan at interest at rate of just 10.15% p.a. He decided to transfer home loan to State Bank of India (cheaper debt). But what advantage Yuvraj will get by switching to cheaper debt?

Cheaper loan means early settlement & less interest payment. Yuvraj calculated that with his present loan balance, reduced interest @ 10.15% will allow him to reduce loan tenure by 2 years. Lower interest rate will also allow him to save interest charges by approx Rs 5,50,000.

Tired of reading? We will speak it for you…

Home loans are really high-value debt for a common man. Reduction of loan tenure and interest saving makes a huge difference in common man’s long term living. We may not realize it but regular EMI deductions devalues our standard of living. We get adapted to a subdued lifestyle when we can afford much more.

Procedures to transfer home loan to State Bank of India (SBI)?

Initially Yuvraj was very skeptical about State Bank of India. SBI being a government bank, he was afraid that formalities will only lead to delay. But he wanted to give it a try. He approached a branch of SBI which was close to his office.

He was pleasantly greeted by a middle aged person of home loan division. Yuvraj told him that he is carrying a home loan of Axis bank. Yuvraj explained that he would like to transfer his home loan to SBI to avail low interest benefits. The banker immediately confirmed that 10.15% can be availed by Yuvraj’s on his current loan balance. The banker also informed that it will take nearly one month for all procedure to be completed. Mean it will nearly 30 days for home loan to get transferred from Axis Bank to SBI.

What about loan transfer we have here :

* Why to consider loan transfer from bank to other.
* Procedures to transfer home loan to SBI.
* Documents required to transfer of home loan to SBI.
* Formalities essential in existing bank before loan is transferred to SBI.
* Charges to be paid before loan transfer to SBI
* How Max Gain OD A/c Makes SBI Unbeatable in terms of home loan

What documents to be submitted to SBI to allow transfer of home loan?

The banker explained Yuvraj how to initiate the home loan transfer procedure. First he advised Yuvraj to approach Axis Bank. Yuvraj should put a written request to Axis Bank. The request should quote the home loan account number that needs to be transferred to State Bank of India. Once the request is submitted by Yuvraj to Axis Bank, the bank will issue a letter for SBI. In the letter Axis Bank must provide that following information:

  • Outstanding Amount
  • Pre-closure charges if any
  • List of property documents hypotheticated by Axis Bank
    • Possession Certificate or Conveyance Deed*
    • Completion Certificate*
    • Share Certificate*
    • Loan Account Statement (Axis Bank in our example)*
    • Blue Print (True Copy)*

In addition to the above letter of Axis Bank, the Account Holder (Raj) should also provide to State Bank the following documents:

    • Photocopy of Sale Deed /Property Agreement papers*
    • No Objection Certificate by Society or builder*
    • Property Tax Paid Receipt of last month*
    • Electricity Bill paid receipt of last month*
    • Society registration certificate*
    • ID & Address proof of Loan Account Holder (Raj in our example)*

*These are minimum list of documents that SBI requires to transfer home loan

What formalities to be done in Axis Bank to Transfer Home Loan to SBI?

Soon after getting details from State Bank of India, Raj visited Axis Bank. He informed them that he wants to transfer his home loan from Axis Bank to SBI. He asked what is the procedure? Axis Bank told Raj that it is SBI that will dictate the procedure in this regard. Raj confirmed that SBI needs a letter from Axis Bank declaring the loan balance. He also need the list of documents of property that is with Axis Bank. To this request Axis Bank immediately logged in the request in their system with the following details:

1) Foreclosure Statement: Will be made available in 15days. In this statement loan account balance will be declared by Axis Bank
2) LOD: This will be a separate letter of Axis Bank. Herein they will declare the list of documents that is with Axis Bank of the property
3) Original Documents Photocopy: Axis Bank agreed to issue a photocopy of all property documents that is there in their holding. But for this Yuvraj had to pay a additional money of Rs 281. Raj personally deposited this amount to his HOME LOAN ACCOUNT NUMBER. After depositing the money, counter receipt of the deposited money (Rs 281) was shown to the Axis Bank representative. The Axis Bank representative in turn logged in the request for documents photocopy.

Charges to be paid before loan gets transferred to SBI…

Once the above Letter of Axis Bank and documents of account holder is submitted to SBI, the bank (SBI) takes over. Hereafter all balance activities are executed by State Bank of India themselves. State Bank of India calls the balance activates as SEARCH. This is nothing but techno-legal verification of property. In order to initiate the process of SEARCH, Yuvraj would be asked to pay the following charges:

1) Advocate Charges: Rs 4,000
2) Valuation Charges: Rs 845
3) Total: Rs 4,845

The banker explained to Yuvraj that the total charge of Rs 4,845 is not refundable. If after techno-legal verification, SBI declines Yuvraj’s request to transfer home loan, Rs 4,845 will not be returned. There are other charges as well that are applicable to transfer home loan to state bank of India. But these will be required to be paid only after SBI’s approval of the request of home loan transfer.

1) Processing Fees: Rs 6,750 (applicable for home loan below 75 lakhs)
2) Stamp Duty Charges: 0.2% of loan amount
3) Extra for Property Insurance.

A Combination of Lower Interest Rate and Max Gain OD A/c Makes SBI Unbeatable

This is one of the best products of State Bank of India (SBI). Max Gain Over Draft (OD) account is perfectly placed for customers carrying home loan of SBI. Max Gain OD a/c helps account holders to save heavily on interest portion of their home loan. Max Gain OD account is actually a home loan account with feature of overdraft.

In an overdraft account one can draw funds making account to go in negative balance. Max gain account is just like a savings account with cheque book and online banking facility. But max gain account comes at a cost. An addition charge of 0.25% over and above home loan interest is charged. Suppose Axis Bank is offering interest @ 10.15% p.a. If one opts for Max Gain a/c then net interest payable will be 10.15%+0.25%=10.4%.

But what is the advantage of Max Gain account? Suppose Yuvraj carries a home loan of Rs 28Lakhs. He has some liquid cash of Rs5Lakhs which he does not use for prepayment of home loan. He can instead put this Rs 5 lakhs in Max Gain Account. The deposited Rs 5 lakhs will be treated as prepayment by SBI. So your loan balance will be Rs 28-5=Rs23Lakhs. Interest calculation of home loan will be done on Rs 23Lkahs @ 10.4% per annum. Suppose, Yuvraj requires these Rs 5lakhs after 6 months, he can withdraw the from Max Gain account.


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37 Comments on "How to Transfer Home Loan to SBI"

  1. Sir,
    I want to switch my HDFC Home loan to SBI . 5500000 (55 Lakh) . I like to know over all charge for switch over from both the banks.

  2. DEBESH PROSAD | March 28, 2017 at 11:59 am | Reply

    I have HBL LOAN( FLAT OWNER ) FROM UNION BANK OF INDIA amounting 1500000 LAKHS .i want to take over these loan from union to sbi. where is my salary disbursed ie. SBI.but I want more two lakhs. total seventeen lakhs requirement for me.is it possible to take over from one bank and FULLFILL MY REQUIREMENT.PLZ KNOW ME

  3. I Nitin Rathi have availed Home Loan from IDBI. I want to transfer my HL to SBI. Please detail documents requirement.

    Nitin Rathi
    Cell No. 9582124545

  4. MAHESWARA REDDY | February 17, 2017 at 10:33 pm | Reply

    Home Loan Take over, better to discuss with existing bank (Interest rate reduce fee), they can’t immediately give replay to you. In this process several things required Legal opinion *(Rs2600), Valuation (Rs3000), Stamp duty (0.5%), existing Bank documentation fee (Rs:575), Property insurance may be Rs7000 to 10000 (not you) so think on it and go

  5. JAKSHAYPANCHAL | February 13, 2017 at 9:44 pm | Reply

    HI,I AM TAKING A HOME LOAN OF 1165000 FOR TUNER OF 25 YEAR FROM HDFC IN 2013.CURRENT MY ROI IS 8.95% & EMI IS 10793/-.I WANT TO TRNASFER MY HOME LOAN TO LIC HOUSING FINANCE.THE ROI OF LICHFL IS 8.60% WITH NO PROCCESING CHARGE OFFER TILL 31/03/2017.SHOULD I GO FOR IT? IF,YES THAN ASK ME THE PROCCESS.

  6. I have same issues as Mr. Manish Deshpande has stated in his comment on Jan 25th2017. Only thing is that my property was supposed to be completed in march2014 construction is over. But complition certification work is not yet received.

  7. Manish deshpande | January 25, 2017 at 4:07 pm | Reply

    I have loan with HDFC and if I want to transfer to SBI then following charges are mentioned by Concerned Agent
    Mortgage 0.2 percent of Loan amount( Comes to around 4500 for my balance loan)
    Search etc 4000
    Valuation 845
    Mortgage Register 2000
    Notice registrar of EM 2200

    Now although processing fee is waived,but still above charges itself amounts to Rs 13500 approx.
    Moreover SBI forces to take RIN Raksha insurance besides property insurance .
    Is it beneficial to transfer the loan just for Max Gain that too is 0.25 percent higher than for new customers.
    What if I can shift to new rates in HDFC itself by using conversion option(Which is same as Max gain interest %) and paying fee of Rs 5750.Please advise any other benefits of balance transfer to SBI.

  8. Is it possible to transfer home loan from ICICI to SBI while staying abroad. I want to transfer but unable to visit country for couple of years. Any suggestions.

    Thank you !

  9. Milan Katrodiya | January 10, 2017 at 7:09 pm | Reply

    Hello Sir,

    My father took loan from AXIS BANK 2 year before, Home under my mother’s ownership, so my father paying loan as co-applicant. Now, I wanted to Transfer loan to SBI as past 1 year I am paying all installments. so it possible to transfer loan in SBI on my name??? Please help.. Thanks in Advance

  10. Hello Sir,
    I Want Shift My Home Loan From DHFL to SBI Please Help me and What is The Process and what will be interest rate finally.Please Repl

    • Hello,
      You can go to DHFL and ask them to give you “list of documents” that they have of the property. There is a procedure. They will take Rs.500 approx and issue you this list within a week. When you get this paper, take your home “loan approval letter” and approach SBI.

      Show these papers to SBI. They will guide you what are the next steps. By the way this post also talks about the procedure in SBI. Thanks

  11. Sir iwant transfer my home loan andhra bank to sbi so what a prosedure sir and any documents required i have loan apply 850000 Year 2014 and emi 9500 for 10.95rate of interest for 20 Year

  12. i have taken home loan from bank of india rs twelve lakhs and twenty thousand from feb 2015 , can i make a prepayment emi option as you suggest .. if i can do please suggest me more about this . present emi 11500 for twenty years

  13. I HAVE TAKEN HOME LOAN 1220000 FROM BANK OF INDIA , I WANT TO SWITCHOVER TO SBI . what is a processor , about how MANY TIME COMPELATE THIS .

  14. hi Sir
    i would like to trancefer my home loan 14.75 from dhfl to sbi

  15. Visit your nearest SBI branch.

  16. Hi, sir iwant to change my housing loan from andhrabank to SBI but andhrabank housing loan is on my husband’s name then how to transfer to SBI my account plz guide me.

  17. K srinivas rao | November 5, 2016 at 9:36 am | Reply

    I and my brother have taken jointly home loan for construction of 20 lacks from union bank housing finance ltd at 10.45% before 2013, 3 month before brother expired and now wants to transfer it to other bank is it possible and how?

  18. Pradeep Kumar. | November 3, 2016 at 1:12 pm | Reply

    I have a Home Loan of Rs. 1950000/- from HDFC Ltd on my DDA Flat and I already pay around 20 EMI of Rs. 17901/- per month.
    I want to switch my existing loan from HDFC to SBI. Kindly help to shift my account in SBI.

  19. Srinivas thota. I havehome loan at hdfc. Amount ₹150000.I was paying 14130 per month with adjustable rate for 20 yrs. What is the benefit at SBI.

  20. I have heard about low interested rates for home loan transfer at SBI. If that is true, I would like to Transfer my home loan from Bank Of Baroda Bangalore to SBI Bangalore.

    Please contact me for further discussion

  21. Hello, I want to transfer my home loan Axis to SBI. During taking loan I have done Insurance. Now, if I transfer the loan, the same Insurance will remain as same or it will be cancelled.

  22. Chandra Bhushan Singh | July 3, 2016 at 2:50 pm | Reply

    I am currently holding SBI Easy home 2300000 for 300 months. I have paid 54 EMI’s and current rate charged by SBI is 9.8%. The current O/s balance is 1862500.

    Should I transfer my balance to other banks/NBFC’s for lower interest rate and top up loan?

    I am thinking about Bajajfinserve – please advise

    • I will suggest you to stay with SBI or any other bank instead of switching to any non core banking company. You can try Axis Bank. The are providing great rates.

  23. manish singh yadav | January 2, 2016 at 5:36 pm | Reply

    I and my brother have taken jointly home loan for purchasing and of 20 lacks from aadhar housing finance ltd at 13.25% 6 month before and now wants to transfer it to sbi is it possible and how

  24. Hello Sir,
    I Want Shift My Home Loan From DHFL to SBI Please Help me and What is The Process. Please Repl.

    • As you have to transfer loan from Deewan Housing to SBI, it should not be a big problem. I will suggest you to visit SBI for specific details. Otherwise, you can also refer my article. The procedure and needed documents should not change a lot from bank to bank.

  25. Hi, I want to know the home loan interest rate by SBI for transfer of home loan . Is it any different or same as any new load?

  26. dear sir,

    i want to shift my home loan from IDBI to SBI,all the procedure are completed but i want one query they give any additional top up loan for renovation/repairing purpose if the value of home is low.

  27. Hi,
    I want to transfer my home loan form Axis Bank(10.75% interest) to SBI. I have not yet received my completion certificate from the builder. I have a loan of 20 lacs and emi is 18,500 for 30 years. Will i be able to transfer my home loan without my completion certificate. Which banks allow loan transfer without completion certificate. Please advice.

    • Hello Abhijit, as a procedure, transfer of home loan from Axis to SBI is possible. But it all depends on discretion of SBI. Generally bank does not readily agree for balance transfer when property is under construction. But they can consider in following cases: developer is reputed, project is running on time, loan has been sanctioned recently (last 1/2 years) etc.

  28. Flexi payment options with SBI Maxgain also helps in better negotiations. The advantage of drawing money at any time gives them an edge above and thus ensure better rates of property also.

  29. prabhakaran.g | July 7, 2015 at 6:11 am | Reply

    i want to transfer my home loan account from repco to sbi.tell me the procedures

  30. Abhijeet Joshi | June 18, 2015 at 9:13 am | Reply

    Hi,
    I want to shift my loan to other bank but my co-operative housing society denies to issue NOC in bank format. Every bank has its own format that comprises of different clauses which are not agreed by society. Neither bank nor society talks about a compromise. In this case what can I do?

  31. i want to transfer my gome loan from HDFC to SBI. I asked HDFC for the list of documents and they said i have to pay a fees of Rs 580 for the same.. Do i need to pay this amount for the list of document.
    Please advise

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