1 | Purpose | (a) For construction / acquiring of new or existing house/flat not older than 30 years. (b) For extension in the existing house/flat. (c) For repairs/renovation/alteration of existing house/flat. (d) Finance may be granted for purchase of plot obtaining declaration from the borrower that he/she/they undertake to construct the house on the plot within the period of two years. |
2 | Eligibility | a. Individual salaried employees, self-employed persons, professional, any other person having a legal, identified and regular source of income. b. The applicant/s must be 18 years old (completed) as on the date of application. c. In case of salaried individuals, applicants must submit original salary certificate/Form 16/income tax return. d. In case of self-employed persons, professionals and others. i. Loan amount upto Rs.10.00 lakh: Satisfactory evidence of sufficient monthly/annual income to be produced by the borrower. Income certificate issued by Tahsildar/Mandal Revenue Officer/Revenue Department Officer having State level Gazetted rank can be accepted for sanction of housing loans upto Rs 10.00 lakh. ii. In case of agriculturists not filing income tax returns, income certificate issued by Tahsildar/Mandal Revenue Officer/Revenue Department Officer having State Level Gazetted rank can be accepted for sanction of housing loans upto Rs.10 lakh. Loan amount above Rs.10.00 lakh: The borrower should produce Income Tax Return for preceding two years as evidence of income. |
3 | Quantum of loan | a) 90% (for loans upto Rs.20 lakh) and 80% (for loans above Rs.20.00 lakh) of the cost of construction / purchase of new / existing flat/house or cost of extension of existing house/flat,(including cost of land) subject to Net Take Home Pay/Income norms. (Stamp duty, registration and other documentation charges, cost of life insurance cover on the life of the borrower should not be included in cost of housing unit). b) 75% of the cost of repairs/renovations/alterations of existing house/flat subject to a maximum of Rs.10.00 lakh. c) 75% of the cost (registered value) of Plot after complying with Net Take Home Pay/Income norms. Plot on standalone basis should not be financed. Cost of the Plot should not exceed 75% of the total cost of housing unit. |
4 | Margin | Loan up to Rs. 20 lakhs- 10% Loan above Rs. 20 lakhs- 20% |
5 | Security | - Equitable/Registered mortgage of the property being financed.
- Where mortgage of the property being financed is not possible, for instance, in case of purchase of house/flat on first power of attorney, other tangible securities such as mortgage of some other property, pledge of bank’s FDR/ LIC policy/Govt. Securities, NSCs, KVPs, IVPs, Bonds, etc. equal to 125% of the loan amount may be taken as security.
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6 | Guarantee | - Condition of Guarantee is waived for salaried individuals irrespective of loan amount. In case of self-employed /others for loans up to Rs.20.00 lakh, no guarantee is required. However, wife, husband, father, mother, sister, brother may be taken as co-applicant instead of insisting for guarantor for loans above Rs.20.00 lakh to self-employed/others.
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7 | Repayment | | (a) For construction/acquiring of new or existing house/flat not older than 10 years, maximum period of 30 years or on borrower reaching the age of 70 years whichever is earlier. If the borrower is more than 60 years old, immediate legal heir should be made Guarantor/Co-Borrower and duly documented consent of all other legal heirs should be obtained. | | (b) For purchase of house/flats older than 10 years, maximum period of25 years or on reaching the age of 70 years whichever is earlier. | | (c) In case of salaried individuals, the repayment period may be extended beyond the retirement of the employee up to maximum age of 70 years, provided the post-retirement income is adequate to meet the EMI liability. | | (d) In case of salaried class, the EMI may be fixed elongating repayment period up to 70 years of age, maximum 30 years in case house not older than 10 years and upto 70 years of age, maximum 25 years if the home/flat is older than 10 years. | | (e) In case of extension of existing home / flat, repairs/ renovation / alteration of existing home / flat repayment should be made within a maximum period of 10 years. | | (f)Moratorium period is to be included in the maximum repayment period allowed under housing finance scheme. In other words the moratorium period plus instalments repayment period should not exceed the maximum repayment period as per the scheme. E.g. If borrower opts to repay in 180 EMIs with 36 months moratorium period then the total repayment period will be 180+36=216 months which should be within the maximum repayment period as per the scheme. | | (g) In case of purchase of plot, the repayment may be combined with that of house construction loan. In case, construction does not start within stipulated 2 years, the loan is liable to be recalled and paid immediately. Exceptionally, the loan is to be repaid within next 3 years at Base Rate + 8% RoI. |
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8 | Rate of Interest | Presently Rate of interest on Housing Loan is as under |
| Tenor | Loan upto Rs.30 lakh | Above Rs.30 lakh upto Rs.75 lakh | Loan above Rs. 75 lakhs |
| | Floating | Floating | |
| a) Upto 5 years | BR+0 =10.25% | BR+0 =10.25% | BR+0.25=10.50% |
| b) 5 to 10 years | BR+0 =10.25% | BR+0 =10.25% | BR+0.25=10.50% |
| c) 10 to 30 years | BR+0 =10.25% | BR+0 =10.25% | BR+0.25=10.50% |
| BR = BASE RATE (PRESENT BASE RATE 10.25%) |
9 | Processing Charges | 0.50% of the loan amount subject to maximum of Rs.20,000/- No processing charges for staff of our Bank. |
10 | Prepayment Charges | No prepayment charges on floating rate housing loans. In case of fixed rate housing loans, prepayment charges will be nil in case borrower repays entire loan amount out of his/her own sources and 1% of outstanding amount if account is taken over by other Banks/FIs. |
11 | Take over of loan | Take over of loan from other Bank/FI is allowed on certain terms and conditions |
12 | Net Take Home Pay | For borrowers with annual income upto Rs.5.00 lakh, the Net Take Home Pay/Income should not be less than 35% of Gross Monthly Salary/Income after including the income of the co-borrower/s. This can be relaxed up to 30% for borrowers with annual income above Rs.5.00 lakh but upto Rs.10.00 lakh and 25% for borrowers with annual income above Rs.10.00 lakh. |