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HOUSING LOAN:

  1. Eligible Category of Finance

    Individual (Borrower and Co-borrowers) – Salaried person/self employed person in business or profession/Association of Persons.

  1. Age Limit

Maximum age limit 60 years. If age is above 60 years, then co-borrower be insisted upon.

  1. Purpose
  1. Purchase of Land.,
  2. Construction/Purchase of house/flats by individuals.
  3. Repair, alternation and additions to houses/flats by individuals.
  1. Maximum Limit of Assistance/Finance
  1. Maximum up to Rs.70 Lac (Tier II UCBs)
  2.           *Housing Loan sanctioned above Rs. 30 Lac shall be out of Advances to Priority Sector

  3. 48 times of monthly income or 4 times of yearly income. In genuine cases loan limit up to 5 times of annual income can be considered.
  4. The maximum loan should not exceed 15% of the capital fund in case of individuals and 40% of the capital funds for group of borrower. The capital fund for the purpose shall include both Tier I and Tier II capital.
  5. The Maximum Loan for Repair, alternation and additions to houses/flats by individuals is Rs. 5.00 Lac.
  1. Margin
  • 85% of the cost of purchase of house or Average value of DLC & Market value  whichever is less (including registry charges)
  • 80% of estimated cost of construction
  • 60% of cost of purchase of land
  • 90% of the conversion and regularization charges paid to Govt. Authority to get registered lease deed/ patta.
  • 50% of the wooden work.
  1. Disbursement

Disbursement of the loan will be made as per guidelines suggested as below:

a) Execution of loan documents & obtaining of original title documents :

Disbursement of sanctioned House Loan would be made only after execution of loan documents and obtaining of original title documents of land/property proposed to be mortgaged to the bank, as mentioned in sanction letter & PDC's and Insurance policy etc.

b) The sanctioned loan may be released in instalments as detailed below:
a). If house loan is sanctioned only for ground floor, disbursement should be made as under:

  1. 1st Instalment: 25% disbursement of sanctioned loan at the time of construction reaches to plinth level.
  2. 2nd Instalment : 25% of sanctioned at the time of laying of roof, after shuttering is completed and verifying that iron for laying of roof is lying at the site.
  3. 3rd Instalment: Next 25% of sanctioned loan after completion of plaster.
  4. 4th & Last Instalment: Last 25% of sanctioned loan at the time of completion of
  5. flooring wood work of doors etc. in progress

b).If loan is sanctioned against land and construction of house for ground floor:

  1. Disbursement of loan against land: It may be released in one instalment only after obtaining registered title documents of property as mentioned in the proposal/sanction letter, verification of payments, PDC's Insurance policy etc.
  2. Loan against Construction of Building: It may be disbursed in four instalments as mentioned above para (I) (a to d).

c).If loan is sanctioned against land and also for construction of ground and first floor :

  1. Disbursement of Loan against land : It may be released in one instalment only after obtaining registered title documents of property as mentioned in the proposal/sanction letter, verification of payments, PDC's & Insurance Policy etc.
  2. Disbursement of Loan against Construction :
  • 1st Instalment: 15% of sanctioned loan at the time of construction reaches to plinth level.
  • 2nd Instalment : Next 20% of sanctioned at the time of laying of roof of first floor after shuttering is completed and after verifying that Iron for laying of roof is lying at site.
  • 3rd Instalment: Next 25% of sanctioned loan at the time of laying of roof of second floor and after verifying that steel is lying at site for laying of roof of second floor.
  • 4th Instalment: Next 20% of sanctioned loan after completion of plaster of both floor's construction.
  • 5th & Last Instalment: Last 20% of sanctioned loan at the time of completion of floors and wood work of doors etc. in progress.

Note:

  1. In case construction progress is already in advance stage i.e. roof has already been laid or finishing work in progress then after recording of these facts on file, 1st & 2nd Instalments of sanctioned loan may be released simultaneously at one time.
  2. Site Inspection will be got carried out by the Branch Manager himself or second officer of the Branch. However, 1st and last site inspection should be got carried out by the Branch Manager himself. Branch Managers will strictly follow the procedure of disbursement of House Loan in instalments as above, after physical inspection of site and reporting of the progress of the construction on file.
  1. Interest Rate

Interest rate on floating basis is charged on reducing method on monthly basis at the rate prevailing time to time as per Bank's Policy. On default on EMI panel interest may be charged at prevailing rate time to time as per Bank's Policy. The prepayment/advance payment may be accepted only after prior permission/approval of the bank for which bank shall have right to make good of the financial loss by way of charging pre payment premium at the rate as may be decided from time to time by the Bank.

  1. Security

Primary/Main Security
By mortgage of residential plot/house/flat/immovable property belonging to borrower and co-borrower.

Note : Legal opinion & non encumbrance certificate shall be obtained from bank's panel advocate on acceptance of title documents of property

  1. Personal Guarantee
  1. Upto Rs. 25 Lac personal guarantee of one member having adequate net worth shall be obtained.
  2. Above Rs. 25 Lac personal guarantee of two members having adequate net worth shall be obtained.
  1. Repayment Period
  1. a) The housing loan will be repayable with in maximum period of 15/20 years including moratorium period or repayment holiday.
  2. b) The normal policy is that moratorium period is six months from the date of first disbursement or after two months of last disbursement whichever is earlier is allowed. Bank will decide the moratorium period depending upon the individual case, but it will not be more than 18 months from the date of construction. Repayment of the loan shall be done as follow
  1. On part disbursement, applicant to pay Pre-EMI Interest (i.e. interest on the amount disbursed) until Final Disbursement.
  2. On Full disbursement, applicant has to pay EMI (Equated Monthly Instalment) combining both interest and principal.
  1. Fees

The Processing and Administrative Fees shall be applicable as per the Bank's norms specified time to time (as applicable), which will be : 0.5% of the Loan amount subject to minimum of Rs. 500/-.

  1. Other general terms and conditions of the Bank including Insurance Coverage of Property shall also be made applicable
Sanction & Disbursement of House Loan
a) Housing Loan for Building Construction
  1. A copy of approved/sanctioned plan issued by the competent authority in the name of a person applying for such loan must be obtained along with the application.
  2. An affidavit-cum-undertaking must be obtained from the person applying for such credit facility that he shall not violate the sanctioned plan, construction shall be made strictly as per the sanctioned plan & shall furnish completion certificate within 3 months of completion of construction.
  3. An architect approved by the Bank shall certify at various stages of construction of building that the construction is strictly as per sanctioned plan and shall also certify at a particular point of time that completion of construction/building is as per site plan approved by the competent authority. In case plot size is more than 500 sq. mtrs. Then a certificate of completion of construction issued by the competent authority/local authority shall have to be obtained by the applicant and which shall be further certified by the approved chartered architect/engineer of the Bank.
b) Housing Loan for Purchase of Constructed Property / Built up Property
  1. An Affidavit/undertaking shall be furnished by the applicant that the build up property has been constructed as per the sanctioned plan and/or building bye-laws along with completion certificate.
  2. An Architect/approved chartered valuer shall certify before disbursement of the loan that the build up property is strictly as per sanctioned plan and/or building bye laws.
  3. No loan would be granted in respect of those properties which fall in the category of unauthorized colonies unless and until the same has been regularized and developed by the competent authority.
  4. No loan would be granted in respect of properties meant for residential use but which the applicant intends to use for commercial purposes and declaring so while applying for the loan.