Home Loan Transfer to SBI – How to do it?

SBI provides home loan at most attractive interest rates. Yuvraj wanted his home long transfer to SBI. He did some study and here are his findings.

Yuvraj carries home loan of Axis Bank. He was paying interest at rate of 10.75% on his home Loan.

He saw that State Bank of India (SBI) is offering home loan at interest at rate of just 10.15% pa.

He decided for a home loan transfer to SBI from Axis Bank. It was only logical, SBI  as it was offering cheaper loan.

But what advantage Yuvraj will get by switching to cheaper loan?

Cheaper loan means early settlement & less interest payment.

Yuvraj calculated that, with his present loan balance. Reduced interest rate @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.

Home loans are very high-value debt for a common man.

Reduction of couple of years in loan tenure, and reduced interest rates can make a huge difference in his/her status of 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.

Hence, the decision of home loan transfer to a more cost effective financer is only logical.

Home loan transfer to SBI – What is the Procedure?

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 also explained that, he wants his Axis Bank’s home loan transfer 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.

#1 What documents to be submitted to SBI?

The first hurdle in any home loan transfer is to be aware of the right documentation formalities.

What documents needs to be submitted to state bank to effect smooth home loan transfer to SBI?

The banker explained Yuvraj how to initiate the home loan transfer procedure.

  • First he advised Yuvraj to approach Axis Bank, and 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 (Yuvraj) 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 for home loan transfer. 

#2. Formalities @Axis Bank to Transfer Home Loan to SBI?

Axis Bank would like to retain Yuvraj. Hence the transfer will not happen automatically. Yuvraj intervention will be required in Axis Bank as well.

Hence, soon after getting procedure details from SBI, Yuvraj 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 Yuvraj that it is SBI that will dictate the procedure in this regard.

Yuvraj confirmed that SBI needs a letter from Axis Bank declaring the loan balance.

He also need the list of documents of his property that is currently hypothecated 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.
#3. Charges to be paid to get home loan transfer 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.

Why to consider home loan transfer to SBI?

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% pa.

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 Rs.5 Lakhs 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=Rs.23 Lakhs. Interest calculation of home loan will be done on Rs.23 Lkahs @10.4% per annum.

Suppose, Yuvraj requires these Rs 5lakhs after 6 months, he can withdraw the from Max Gain account.

Disclaimer: All blog posts of getmoneyrich.com are for information only. No blog posts should be considered as an investment advice or as a recommendation. The user must self-analyse all securities before investing in one.

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17 Comments on "Home Loan Transfer to SBI – How to do it?"

  1. Dinesh Deshmukh | April 22, 2018 at 6:58 am | Reply

    Sir I want transfer my home loan LHFL to SBI possible or not possible ,, what is process ? Time ,, Plz. Help

    • I am sure it is possible. Transferring loan from LIC HL to SBI Max Gain A/c should be a good alternative explore.
      Regarding procedures, I am afraid you will have to make two visits. One, to SBI HL department. Second to LIC HL department.
      Both of them will tell you their procedures.

  2. Hi,

    I have recently got approved a home loan for 48 Lakhs from PNBHFL (Housing Finance Ltd), however, as their services are not good, we want to shift our Home loan to SBI.
    Could you please guide us on this. Bank is forcing us that you have to pay on year EMI to us then only we can decide, but we want it early to be done. Is it something like we can counterpart them.
    Thank you!!

  3. I and my brother have taken jointly home loan for purchasing and of 10 lacks from aadhar housing finance ltd at 11.99% 6 month before and now wants to transfer it to sbi is it possible and how

  4. 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.

  5. 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

  6. 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

  7. 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

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


  9. 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.

  10. 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.

  11. 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 !

  12. 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

  13. 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

  14. 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

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