We provide Housing Loan to individuals to enable them to
i)Purchase or construct a new house/flat
ii) Purchase an existing (old) house/flat or extend
/ enlarge an existing house
iii) Repair or renovate an existing house flat
iv) Purchase a plot of land for the purpose of construction
of a dwelling unit
v) Purchase furnishings/consumer durables as
a part of project cost
Purchase of old house/flat
The house/flat to be purchased should not be more than
10 years old. In cases where the property is more than 10 years old but the proposal
is otherwise sound i.e. life and condition of the house /flat is such that the bank’s
security coverage is not affected till full repayment of the loan such proposals
may be considered with prior clearance from HO on merits. For this purpose, the
following certificates should be obtained.
A valuation certificate from a Govt. approved valuer (the loan amount plus margin
should be equal to or less than the certified value)
A certificate from a Govt. approved architect/structural engineer regarding the condition and remaining useful life of the house /flat (which should obviously be
more than the repayment period proposed to be stipulated)
Individual(s) over 21 years of age with a regular source
of income including persons engaged in agriculture and allied activities are eligible
for availing loans under the scheme
3. Extent of loan
3.1 Maximum Amount
Age of the Borrower
Ceiling on Loan Amount
i) Borrowers between 21 to 45 years of age (or where any
of the joint borrowers is between 21 and 45 years of age and has independent assured
60 times the net monthly Income (NMI) or Rs. 10.00 lakh
whichever being lower
5 times net annual Income (NAI) or Rs. 10.00 lakh which
ever being lower
ii) Borrowers over 45 years of age (or where any one of
the joint borrowers is over 45 years of age and has an independent assured income)
48 times the Net Monthly Income (NMI) or Rs. 8.00 lakh
whichever being lower
4 times net annual Income (NAI) or Rs. 8.00 lakh which
ever being lower
3.2 Loans for purchase
of plot/for repairs
The maximum loan amount should not normally exceed Rs.
3.00 lakh where loan is being granted for purchase of land alone or for repair/renovation
Actual loan amount will be determined taking into consideration such factors as
applicant’s income and repairing capacity, age, assets and liabilities.
As regards loans for repairs/renovations/construction etc.
branches should satisfy themselves about the estimated cost of work involved
having regard to the extent of cost, materials to be used , cost of labour and other charges
and after obtaining certificate(s) of qualified engineers/architects as considered
In case of salaried persons NMI means monthly income net of all deductions including
loan repayments and actual tax deductions at source.
In case of applicants other than salaried persons, NAI means annual income as per
latest income tax return filed less loan repayments and taxes payable.
In case of agriculturists, the NAI should be based on the
nature of their activity (e.g. farming, dairy, poultry, orchards etc.), land holding,
cropping pattern, yield etc. and average level of income derived therefrom in the
Income of spouse/son/daughter
i)Income of the spouse may be considered where the proposed
property is jointly held with the spouse and spouse is jointing as co-borrower or
where the property is held in single name of the borrower and the spouse stands
as a guarantor.
Income of a son/daughter may be considered with the prior approval of HO provided
is living with the borrower
has a regular income and his /her salary is routed through our branch account and
joins as a co-borrower.
Regular income from all sources can be considered to arrive
at the total eligible loan provided that the sanctioning authority is satisfied
about the proof of the income.
The expected rental (less taxes , etc) may be taken into
account to arrive at the total eligible loan amount in case the proposed house/flat
is to be let out.
and Consumer Durables
The cost of furnishings and consumer durables may be included
in the project cost to the extent of 10 % of the project cost subject to a maximum
of Rs. 1.00 lacs provided check-off facility /additional security/third party guarantee
good for the amount is available.
Details of margin to be stipulated for various purposes of
house building loans are as under.
Loan proposals for purchase of land
(for construction of dwelling unit)
30% of the cost of land which may include registration
fees, stamp duty etc.
ii) Loan proposals for purchase of land, construction of
dwelling unit, additional amenities, registration fees, stamp duty etc.
15% of the total project cost . It may be relaxed/reduced
upto 10% where check-off facility is available from a reputed employer or selectively
where additional collateral equivalent to at least one third of loan amount is available.
iii) For repairs or renovation of an existing
20% of the cost of repair/renovation works. It may be relaxed
to 15% by the sanctioning authority where check-off facility is available from a
5.Type of Facility
6.1 Primary :Ordinarily an equitable mortgage by deposit of title
deeds of the immovable property should be obtained to save high cost of legal expenses
involved in registered mortgage. The title deeds of the landed property/flat/house
etc. must be examined by the bank’s advocate who would certify in the search report
that the mortgagor’s title to the property is clear and that a valid equitable mortgage
can be created.
a) Third party guarantee of two persons individually good
for the amount involved in view
of their financial net means, at Bank’s
b) If mortgage of the property being financed is not possible
sanctioning authority may accept at its discretion liquid marketble security of
adequate value covering 100% of loan amount in the form of bank’s fixed deposits,
assignment of surrender value of LIC policies, NSCs, KVPs ,or such other tangible
security as may be deemed appropriatesubject to margins stipulated in the schemes for
finance against the securities concerned.
6.3 Interim Security
Pending Creation of Mortgage
Whenever creation of mortgage is likely to be delayed for
any valid reason suitable securities includingthird party guarantee
as considered necessary may be taken for the interim period. In such a case, the
agreement to mortgage should be executed by the borrower and the mortgage as prescribed
must be created subsequently at the earlest.
Where house /flat is being purchased from the housing board
/Govt. institution /a reputed builder the original letter of allotment/agreement
for sell should be obtained from the agency/
builder who is providing the house /flat to the applicant.
A letter duly signed by the allottee advising the concerned agency /builder that
a security over the house/flat is being created in favour of the bank and the title
deeds to the said property should be sent to the bank direct on final payment, must
be obtained and forwarded to the concerned agency/builder and their confirmation
for agreeing to do the needful should be obtained and kept on record.
6.5 In case of allotment of flat/house by a society ,the
original share certificate /allottement letter issued by the society alongwith a
copy of the by-laws of the society concerned should be obtained and kept in record
. The society must be advised of the bank’s interest in the property and requested
to send directly to the bank the document evidencing title of the borrower to the
property being purchased . The acknowledgement of the society for agreeing to the
needful must be obtained and kept on record. Some security including third party
guarantee may be taken during the construction period , wherever considered necessary
to safe guard the bank’s interest
0.90% of the loan amount + Service Tax & Education Cess
Service Tax & Education Cess
8. Processing Fee & Other Charges
8.1 Processing fee at 0.30% of the loan amount will be
levied for all housing loans irrespective of limits. It is payable at the time of
submission of application to the bank .
8.2 All charges in connection with search report (valuation
certificate etc.) should be recovered on actual basis when incurred.
8.3 Equitable mortgage charge @ Rs. 500/- per Rs. 1.00
lakh should be realized at the time of creation of equitable mortgage.
The house/flat purchased/constructed with the bank’s finance
should be insured against the risk of fire riots/earthquake /lightening etc. in
the joint names of the borrower and the bank for the full market value of the property
or the outstanding loan amount whichever is higher. A copy of the policy is to be
retained with the bank duly entered in the Insurance register. The Borrowers may
be encouraged to obtain one time insurance for the entire repayment period so as
to get substantial discounts offered by insurance companies.
10.1 Maximum repayment
For borrowers upto 45 years of age : 10 years
For borrowers over 45 years of age : 7 years
Ordinarily the repayment, (i.e. payment of EMI) should
commence from the month following the month when full disbursement has been made.
Where loan is sought for construction of a new house/flat
or where it is being purchased on instlaments basis from a Govt. /Public Agency/reputed
builder or society, at the request of the borrower a moratorium period (repayment
holiday) may be allowed till 2 months after completion of construction or upto 18 months from disbursement of the first instalment of the loan, whichever is earlier.
10.3 The moratorium period is to be included in the maximum
repayment period of 10 years .
10.4 Recovery of Interest during moratorium period
At the request of the borrower recovery of interest may also be deferred during
the moratorium period. In such cases, the EMI should be fixed on the basis of the
loan amount and the total of interest to be applied (on compounding) basis) to the
loan account during the moratorium period on the presumption that the entire loan
is disbursed on the date of first disbursal.
After completion of the moratorium period, should the borrower request for a change
in the EMI on the basis of the actual outstandings (i.e. balance including accrued
interest applied to the account during the moratorium period), the same may be permitted
only after a fresh check-off facility for the revised EMI is registered with the
employer or new set of post dated cheques for the revised EMI have been obtained.