The bank, ‘The Kumbakonam Bank Limited’ as it was then called was incorporated as a limited company on 31st October, 1904. The first Memorandum of Association was signed by twenty devoted and prominent citizens of Kumbakonam including Sarvashri R. Santhanam Iyer, S.Krishna Iyer, V.Krishnaswami Iyengar and T.S.Raghavachariar. T.S.Raghavachariar was the First Agent of the Bank.  In 1908, he was succeeded by Shri R. Santhanam Iyer who became the Secretary of the bank under the amended Articles of Association which created the office of a Secretary to be in charge of the Bank’s Management in the place of the Agent, which post he held till his death in 1926. He was succeeded by Shri. S. Mahalinga Iyer as Secretary who subsequently became the First full-time Managing Director of the bank in tune with the amendment of Articles in 1929.  He held the position of Secretary from 1926 to 1929 and that of Managing Director from 1929 to 1963.

The bank in the beginning preferred the role of a regional bank and slowly but steadily built for itself a place in the Delta District Thanjavur. The first Branch of the Bank was opened at Mannargudi on 24th January 1930.  Thereafter, branches were opened at Nagapattinam, Sannanallur, Ayyampet, Tirukattupalli, Tiruvarur, Manapparai, Mayuram and Porayar within a span of twenty five years.  The Bank was included in the Second Schedule of Reserve Bank of India Act, 1934, on 22nd March 1945.

The Bank celebrated its Golden Jubilee on 14th November, 1954 at Kumbakonam under the Presidentship of Shri.C.R.Srinivasan, Editor, ‘Swadesmitran’ & Director, Reserve Bank of India.

In 1957, the bank took over the assets and liabilities of the Common Wealth Bank Limited and in the process annexed to it the five Branches of Common Wealth Bank Limited at Aduthurai, Kodavasal, Valangaiman, Jayankondacholopuram and Ariyalur.

In 1963,  Shri. R. A.Venkataramani Iyer took charge as the Chairman of the Bank which position he held up to 1969.

Individual Housing Loan Scheme For The General PublicPurpose:

The bank may render credit assistance for:-
1.Purchase of a house site for construction of a house there on.
2.For a construction of a house property over the site.
3.Purchase of a ready built house/flat.
4.Extension/improvement of the existing house/flat.
5.Purchasing a flat under construction.


Individuals having an assured source of income viz. salaried employees, self employed professionals, businessmen , farmers etc.,

Permissible amount of Loan:

The loan may be granted upto 75% of the total cost subject to a maximum of RS.25.00 Lakhs.In respect of advance against plot or land , the amount of loan shall not exceed 50% of the cost of the plot and the cost of construction of the house. However, it shall also be ensured that the quantum of loan does not exceed 48 months net salary /income of the applicant or last year income in respect of professionals / others as per IT returns.
Documents to be given:

1. In respect of salaried employees, while computing the net income, salary certificate from the employer should be given.
2.In respect of self employed professionals , the income is calculated based on the It return submitted by the borrower.
3. In respect of the farmers/ rural artisans the net income should be calculated based on the details of land holdings and income from allied activities and other sources if any after deducting the amount of crop loans and other loans.


A Margin of 25% is to be brought in at each stage of disbursement of the loan.

Rate of Interest:

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Repayment Period:

The Loan to be repaid within a maximum period of 10 Years in equated monthly installments for business people and 15 Years for Salaried Class.


Equitable Mortgage Charge of house site together with the construction to be made thereon / ready built house/flat for which the loan has been granted.

Processing Fees:

Processing Fees at 1% of the loan amount to be charged. And no other hidden charges as charged by other banks


Insurance to be got effected over the immovable property held as security at the cost of the borrower and also the clear title and marketable over the immovable property

Other Documents:

1.For Documents of title of the Bank’s Legal advisor opinion is must.

2.Copy of the approved site plan for the proposed construction.

3.Valuation report by the bank’s approved Engineer for the proposed construction or ready built house is must.

4.Third party guarantee on an individual with comparable ..mean is needed

Disbursement of the Loan:

The Loan should be disbursed in suitable stages duly considering the requirement of funds and progress of work.

Other Conditions:

1.The bank shall have the first charge by way of mortgage on property including additions/alterations made therein.

2.Disbursement of loan shall be effected only after all documentation formalities completed.

3.Disbursement of loan is to be effected only by account payee pay order/Demand Drafts directly in favour of the seller/ builder/ vendor/ society , etc.,

4.In case of construction of house, loan to be made in stages in accordance with a phased program as under:-

a) 25% when relative plan is sanctioned

b) 25% for construction up to the plinth level against production of certificate from the Engineer

c)25% for construction up to the celling level against production of certificate from the Engineer.

d) Balance on completion of roof against the Certificate from the Engineer.

5.In respect of ready built house payment may be made in one lump sum

6.The Construction should be completed with in a maximum period of 18 Months of the date on which the first disbursement of the loan in made.

ment hZ�a<`k� �@ >

  • Initial repayment holiday not to exceed 12months
  • Total deductions including instalment should not exceed 50% of gross income
  • In case of employees, repayment should be completed before the date of superannuation

In other cases, the age limit is 65 years for repayme



Basic Requirements

  • Proof of income such as Salary Certificate/IT Assessment Order
  • Copy of approved Plan and Estimate of the buililding/SaleAgreement
  • For Salaried persons, irrevocable authorisation for recovery of Instalments must be submitted,duly acknowledged by the Employer


Land &Building purchased/constructed

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