Home / News / India /  SBI mega e-auction for properties tomorrow: Here’s what you need to know
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State Bank of India (SBI) is all set to conduct an electronic auction for the mortgage properties — both the commercial and residential properties — on October 25. Under SBI mega e-auction, you have a chance to bid and win some home, plot or shop at a lower price than the existing market rate.

“Bid from your home! Join us during the e-auction and place your best bid," SBI tweeted.

“We at SBI are very transparent when putting immovable properties, mortgaged with the Bank / attached by Court order to auction, by furnishing all the relevant details that can make it an attractive proposition for bidders to participate in the auctions. We also incorporate all relevant details and state whether the same is freehold or leasehold, give its measurement, location etc., including other relevant details in the public notices issued for auctioning," the bank mentioned on its website.

Buyers should also be aware of the risks involved in buying a property in an auction.

“Despite SBI having given addresses & sizes of properties, names & addresses of previous owners on its website, in case someone claims to be the owner of the property after the purchase, it is highly unlikely that the bank or institution will come to your rescue,"said Shruti Khandare, Chief Marketing Officer, MyFundBazaar India Private Limited.

Before participating in a bank auction, they usually ask for 10% of the reserve price as earnest or deposit money which is reimbursed if you lose the bid. “However, for winners, the payment deadlines are tight. According to SBI’s terms and conditions, the winner will need to deposit 25% of the sale price, after adjusting for the earnest money, by the next working day of winning an auction. The balance of 75% is to be paid within 15 days of winning the auction. If you fail to meet any of the deadlines or give up the flat, you will forfeit the deposit. Banks stick to a strict payment structure as they are in a hurry to recover the loan amount, and want only serious buyers to participate," said Shruti Khandare.

A step-by-step guide to participate in bidding:

  • Bidders need to log in on the portal by using the registered email ID and password.
  • Once the bidder accepts the terms and conditions, they need to click on the 'participate' button to enter the auction.
  • After clicking the 'participate' button, bidders have to upload the KYC documents, EMD Details and FRQ (First Rate Quote – Quote Price.
  • Once all the necessary documents are uploaded, the bidder has to submit the Quote Price. Quote Price can be equal or greater than the reserved value of the property or asset.
  • After filling up the quoted price, click on the 'submit' option and then 'final submit' in order to submit the final bids online. It must be noted that the bidder can not make changes in the uploaded documents or the quoted price after the final submission.

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