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About Saraswat Bank

Saraswat Bank has an amazing history dating back to 1918 when a group of philanthropists and intellectuals established the Saraswat Cooperative Banking Society. The aim was to provide financial assistance to distressed families to meet their daily obligations. In 1933, the society was converted into an urban cooperative bank. A substantial increase in the membership, resources, and assets made it one of the leading cooperative banks by 1942. By 1978, the bank was granted a license to deal in foreign exchange. It also became the first cooperative bank in India to provide Merchant Banking services.

Saraswat Cooperative Bank Ltd became a scheduled bank in 1988 following which its business crossed 700 Crores by 1992. The turn of the century witnessed a sea-change in the bank as it achieved a business figure of around 15,300 Crores by 2007. The RBI allows the bank to open branches all over India. As on March 31, 2018, the bank had 281 branches spread over six states. It also ventured overseas by establishing corresponding relationships with more than 430 centres. Today, Saraswat Bank is a leading cooperative bank in India, offering a variety of services.

Saraswat Bank Home Loan

One of the primary objectives of Saraswat Bank at the time of its establishment was to assist people with getting temporary accommodation and other essential services. Today, the bank offers various kinds of loans such as Home Loans, vehicle loans, education loans and loans against property. The Home Loan product caters to both salaried and self-employed individuals. Home Loans are available up to 70 Lakhs for purposes ranging from purchasing a house to constructing it. Balance takeover facilities are available where borrowers can shift their Home Loans from other banks and financial institutions to Saraswat Bank. Apart from adopting a transparent interest rate structure, Saraswat Bank is committed to providing the best customer service. It explains the popularity of its Home Loan product.

Saraswat Bank Home Loan Interest Rates

Saraswat Bank offers attractive rates of interest on Home Loans linked to its Prime Lending Rate (PLR). As on date, the Saraswat Bank PLR is 14.40%.

The Home Loan interest rate structure is as follows:

Loan amount slab The floating rate for all women borrowers The floating rate for salaried persons (other than women) The floating rate for non-salaried persons excluding women

Up to 28 Lakhs

8.55%

8.65%

8.65%

Higher than 28 Lakhs and up to 50 Lakhs

8.80%

8.80%

8.80%

Above 50 Lakhs

9%

9.05%

9.15%

  • The rates mentioned above apply for the regular Home Loan product, Vastu Siddhi Home Loan
  • The Home Loan rates are linked to the Saraswat Bank PLR. The PLR connects to market rates. Therefore, any fluctuation in the market rates affects the PLR. A change in the PLR causes a corresponding change in the Home Loan interest rate.
  • Women borrowers get a concession of 0.10% on Home Loan interest rates subject to satisfying specific conditions:
    • The woman should either be a sole borrower or one of the joint borrowers
    • The property should be in the name of the woman, or she should be one of the co-owners of the property.
    • The benefit is available only of the cost of the dwelling does not exceed 35 Lakhs
    • The concession is available only for Home Loans up to 28 Lakhs
  • Salaried and self-employed persons are eligible for a Home Loan. However, the rate of interest on their Home Loans is different.

Apart from Vastu Siddhi Home Loan, Saraswat Bank offers a Top-Up Loan for a maximum of 25 Lakhs. Specific conditions apply for the approval of the top up loan. One such condition is that the Home Loan and top-up loan together should not exceed 70 Lakhs per dwelling per beneficiary.

The rate of interest on the top-up loan is different from that of the Home Loan.

The fixed-rate on top-up loans up to 5 Lakhs

9%

The fixed-rate on top up loans above 5 Lakhs

10%

Besides the regular Home Loan and Top-Up Loans for repairs and renovations, Saraswat Bank has other exciting Home Loan-linked products.

  • Combo offer for Vastu Siddhi customers: Pre-sanctioned car loan up to 6 Lakhs for borrowers having a minimum Home Loan of 50 Lakhs.
  • Pre-sanctioned credit card for all new Vastu Siddhi applicants
Home Loan Amount Credit Card Limit

Home Loans up to 25 Lakhs

50,000

Home Loans more than 25 Lakhs up to 50 Lakhs

1 Lakh

Home Loans above 50 Lakhs and up to 70 Lakhs

2 Lakhs

Apart from Home Loans and its various combo offers, Saraswat Bank offers loan against property. It also has unique products for constructing hospitals, clinics, and dispensaries for medical practitioners. Loans are readily available for the purchase of essential medical equipment.

Saraswat Bank Home Loan - Processing Charges

Saraswat Bank has an attractive processing fee structure for Home Loans and its variants.

Loan Product and Amount Slab Processing fee applicable

Vastu Siddhi - Up to 28 Lakhs

No processing fees

Vastu Siddhi - More than 28 Lakhs and up to 50 Lakhs

10,000

Vastu Siddhi - More than 50 Lakhs

20,000

Combo offer - Vastu Siddhi plus Car loan

Processing fee waived

Saraswat Bank Home Loan - PMAY

Saraswat Bank has more than 280 branches in India spread over Maharashtra, Karnataka, Goa, Madhya Pradesh and a couple of other states. The bank is an active player in PMAY in these states.

The key features of PMAY Home Loans offered by Saraswat Bank are as follows:

PMAY Category EWS/LIG MIG-I MIG-II

Maximum annual family income eligibility

  • EWS - Up to 3 Lakhs
  • LIG - Up to 6 Lakhs

More than 6 Lakhs and up to 12 Lakhs

More than 12 Lakhs and up to 18 Lakhs

House dimensions - Carpet area

No restrictions

160 sq.mt

200 sq.mt

The maximum amount of loan eligible for a subsidy

6 Lakhs

9 Lakhs

12 Lakhs

Interest Subsidy

6.50%

4.00%

3.00%

Maximum Subsidy Amount

2.67 Lakhs

2.35 Lakhs

2.30 Lakhs

Loan sanctioned dates

w.e.f. June 17, 2015

w.e.f. January 01, 2017

w.e.f. January 01, 2017

Scheme validity

March 31, 2022

March 31, 2020

March 31, 2020

Women ownership

Mandatory

Not compulsory

Not mandatory

PMAY Home Loan Interest Rate Structure

The rate of interest on a PMAY Home Loan is the same as that of the regular Home Loan. The only distinctive feature is the availability of PMAY interest subsidy for eligible borrowers.

The subsidy amount depends on the following factors:

  • The category of the borrower: EWS/LIG/MIG-I/MIG-II
  • The loan amount: Applicants can avail Home Loan up to their eligibility levels. However, the entire loan amount is not eligible for calculating the subsidy. The maximum amount eligible for calculating subsidy is as follows:
    • EWS/LIG: 6 Lakhs
    • MIG-I: 9 Lakhs
    • MIG-II: 12 Lakhs
  • The loan amount over these limits is an unsubsidised loan
  • Subsidy ceiling: The maximum amount of subsidy is 2.67 Lakhs for EWS/LIG, 2.35 Lakhs for MIG-I, and 2.30 Lakhs for MIG-II category.
  • The subsidy is an upfront grant, whereby the bank should credit it to the loan account immediately on receiving the same.
  • Therefore, the bank will charge interest on the approved loan amount less subsidy received in the account.
  • As the subsidy is credited upfront, the EMI liability of the borrower reduces considerably

PMAY Home Loan Interest Subsidy Benefit to the Borrower

These examples will explain the benefit of the upfront interest subsidy:

  • Borrower with loan amount equal to the maximum amount eligible for calculating the subsidy
    • Borrower category: LIG
    • Loan amount: 6 Lakhs (equivalent to the maximum amount allowable for a grant)
    • Rate of interest: 8.55%
    • Repayment tenure: 20 years
    • EMI in the ordinary course: 5,226

This borrower is eligible for an upfront subsidy of a maximum of 2.67 Lakhs. On receipt of the same, the amount is credited to the Home Loan. Therefore, the principal loan amount reduces to 3.33 Lakhs. The revised EMI would now become 2,900. Thus, the borrower gains 2,326 per month for 20 years.

  • A borrower with a loan amount higher than the maximum amount eligible for calculating the subsidy
    • Borrower category: MIG-I
    • Loan amount: 13 Lakhs (more than 9 Lakhs, the maximum amount eligible for calculating subsidy).
    • Rate of interest: 8.55%
    • EMI in the ordinary course: 11,323

The borrower gets a grant of 2.35 Lakhs that is credited to the account. The principal loan amount now reduces to 10.65 Lakhs. Therefore, the revised EMI is 9,276. Thus, the borrower gains 2,047 per month over 20 years. Note that the maximum amount of loan eligible for subsidy is 9 Lakhs. The loan amount above 9 Lakhs, i.e., 4 Lakhs is an unsubsidised loan. The borrower does not get the benefit of interest subsidy on this amount.

Saraswat Bank Home Loan Interest Rates - FAQs

What is the highest loan amount available with Saraswat Bank?

Saraswat Bank is an urban cooperative bank. The rules of the bank allow the bank to sanction Home Loans up to a maximum of 70 Lakhs.

If my requirement is more than 70 Lakhs, what are the options available to me?

Saraswat Bank has entered into a tie-up arrangement with Tata Housing Capital Finance Ltd (THCFL). The bank refers such cases to this company for financing your requirements above 70 Lakhs.

Do I have to purchase shares in Saraswat Bank to be eligible for a Home Loan?

The bank rules specify investment in shares of Saraswat Bank to be eligible for a Home Loan. The shareholding should be as per existing shareholding norms.

Do women beneficiaries get exclusive benefits in interest rates?

Women beneficiaries get interest rate concessions up to 0.10% subject to the satisfaction of the following conditions:

  • Women should be co-owners/sole owner of the property
  • The concession is permissible only on loans up to 28 Lakhs
  • The value of the property should not be more than 35 Lakhs

Is there any distinction between salaried borrowers and borrowers who have independent sources of income?

There is no distinction between salaried persons and self-employed individuals on interest rates for loans up to 50 Lakhs. However, for loan amounts beyond 50 Lakhs, salaried persons get a benefit of 0.10%. Women salaried employees get an additional benefit of 0.05% in this specific category.

Is it compulsory to have a woman borrower in PMAY loans?

Yes, PMAY loans in the EWS and LIG category require at least one-woman beneficiary. Thus, the woman borrower should either be a sole owner or co-owner of the property. However, it is not a mandatory condition in the MIG-I and MIG-II categories.

If there are no women in the household, will the family not be eligible for PMAY loan in the EWS or LIG category?

Such cases are rare but possible. Under such circumstances where there is no adult woman beneficiary, the male member of the house can apply for PMAY loan. Such loans are applicable for new purchases alone and not for new construction or repairs to an existing home.

Who gives the subsidy in a PMAY loan account?

The bank will submit the claim for the subsidy to National Housing Bank. The Government of India will disburse the grant to the beneficiaries through the National Housing Bank.

Is Aadhar card mandatory for applying for a loan in PMAY?

Yes, Aadhar card is a mandatory requirement in PMAY loans.

What is the maximum repayment period for a Home Loan in Saraswat Bank?

The maximum loan repayment tenure is 20 years for both salaried and self-employed professionals.

Saraswat Bank Home Loan - Latest News

Saraswat Bank ties up with Tata Capital Housing Finance Ltd (TCHFL)

Tata Capital Housing Finance Ltd has entered into a tie-up arrangement with Saraswat Bank to provide mutual benefits to both their customers. These benefits include a range of Home Loans and loans against property. As a cooperative bank, Saraswat Bank can sanction Home Loans up to 70 Lakhs. Any requirement above this ceiling will be referred to Tata Housing Capital Finance Ltd.

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