Loan Procedure of SBI

A lot of people who visit my blog asked me for the procedure of the bank loan that I am gonna procure. Here it is for those interested:

--> You definitely need to have a collateral Security of around 150% if you are going for a loan of more than 400,000 Rs. The bank will tell you 100% but you reuire 150% for the following reasons:
1. Bank will ask you to get an estimate from one of the bank vendors (Yuvraj Planners in my native in my case). Typically those planners will give you a very less estimate than what you will think of. For my brothers house, my estimate was 1,200,000 where as they have given 860,000. Infact the value of site itself is 400,000+ which means that for a house which is One storeyed with all posh tiles and all they have estimated 460,000 which is very less. This has happened for the other properties that I have given top them also. I found that this is a practise followed by those planners.
2. Once you get an estimate bank will again discount it by more than 20%. So, for my brothers house bank approval will be for the max of 688,000rs which is not so much higher than the plot value.

So typically after all these cuts, if you want to get a loan of 100% you need to have a collateral of 150%. Once you get the collateral it will be a cake walk to get a loan. After all we are giving a lot of security for the loan...Few FAQ from what I understood:

1. Can we get a loan with out collateral??
A. Mere impossible if loan is more than 400,000

2. Will the Oxford brand count?
A. I dont see it because bank guys just checked my document once and always kept talking about the collateral.

Hope this helps. Any question leave a comment.