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MORGAGE LOAN AGAINST PROPERTY

  • Quantum:

This scheme provides loan/overdraft facility against mortgage of property at low rate of interest. The scheme is for people engaged in trade, commerce & business and also professionals & self employed, Proprietorship Firm, Partnership Firm, Companies and Individuals with high net worth including salaried people and staff members.

  • Purpose:
a) To meet the credit needs of trade, commercial activity, other general business, Profession as also for their bonafide requirements;
b) To meet marriage or medical or educational expenses of family members including near relatives;
c) To undertake repairs / renovation / extension to the residence / commercial property;
d) Purchase of 2/4 wheeler vehicles, consumer durables;
e) To purchase / construct house / flat, purchase of plot;
f) For going on pilgrimage / tours/ excursions, etc;
g) Repayment of existing loans from other Banks / Financial Institution.
  • Eligibility

Individuals, (it may include co-borrower) who are- 

1 Salaried Person, Staffs
2 Professionals
3 Businessman/Others who are income tax payee. Others - Trust, firm including partnership firm, group, association of persons, Pvt./Ltd.

Net monthly income for salaried persons is not less than Rs. 5000/- p.m. or net annual income is not less than Rs. 60,000/- in case of self employed and others.

 

  • Age Limit:

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

  • Quantum of Advance:
Minimum Maximum
Individuals/ Proprietorship Firm Partnership Firm/Company Rs. 1.00 Lac As per Bank Exposure limit change from time to time
  • Calculation of Quantum of Loan:

The sanctioned limit is to be related to the value of security and repayment capacity of borrower, subject to:

1 Salaried Employees:
a).   48 times of monthly net emoluments ( take home salary) OR
b).   4 times of net annual income with other rental income from property etc. Based on Income Tax returns (Average of last 2/3 years.)
2 Self-employed/ professionals/Individuals engaged in trade/ commerce / business:
Four times of their net annual income based on Income Tax returns (Average of last 2/3 years)
3 Proprietorship/Partnership Firms/Company:
Four times of cash accruals (i.e. PAT + Depreciation) as per their Audited Balance Sheet/P & L Account (Average of Last 2/3 years
  • Margin:
    i) 25% of DLC Value of property.
    ii) 40% of Average of DLC + Market Value of property.

    The value of the property shall be got assessed form the approved valuer of the Bank.

  • Security
    • Equitable mortgage of legally acceptable title documents of non-encumbered residential house/flat/Urban property/Commercial/ Industrial Property in the name of borrower /co-borrower which is either self occupied or vacant or let out which is not mortgaged to any institution/bank for any purpose. The mortgage Loan or O.D. facility may also be granted against the security of third person property means other than borrower /co-borrower's property. In such case the third person shall be mortgagor guarantor. Agricultural land is NOT accepted as security for this facility

    Note : The loan may be considered/granted as a special case in respect of properties already mortgaged to our bank against some other credit facilities granted to the applicant subject to the conditions that overall security margin to 50% is available/maintained for the proposed loan/limit against this scheme.

  • Disbursement of Loan
    • Term Loan:  In one & two instalments as per applicant's/ borrowers need.

      O.D. Limit:

      a) Borrower would withdraw the required amount up to sanctioned loan/limit which would be gradually reduced every year.   

                                 OR
       b) The borrower can withdraw the loan amount up to sanctioned loan/limit which may not be reduced during the currency of loan/limit repayable at the end of the repayment period. In such case the O.D. limit has to be renewed by the Bank every year.

  • Interest Rate
    • As per interest rates prevailing from time to time, In case of O.D. limit/Loan interest would be charged on monthly basis as charged/ calculated on CC/Hyp accounts.

  • Personal Guarantee
    • Besides primary security as detailed above Third party personal guarantee of two  members having good credentials and adequate net worth shall required to be furnished for the security of the loan.

  • Repayment Period
    • Term Loan: Maximum of 10 years (120 months) to be recovered in monthly instalments through PDC.

      O.D. Limit: It would be reduced 10% on yearly basis so that O.D. Limit under mortgage loan scheme is finally paid with last day of repayment. It should be renew every three years of sanction.

      In case O.D. Limit is not to be reduced yearly than it requires renewal every year.

  • Processing Fees
    • a) Term Loan repayable in monthly instalment as per rates/charges prevailing from time to time, say it is 0.5% of the loan amount.

      b) In case of O.D. Limit, without yearly reduction renewal yearly would require to pay processing fee every year say @ 0.50% as applicable in case of CC/ Hyp. limit besides processing fee applicable/payable under mortgage loan scheme i.e. say 0.50% of the sanctioned loan/limit.

      Other general terms and conditions of the Bank including insurance coverage of property shall also be made applicable.