Mortgage Loan Against Property
- Quantum:
This scheme provides loan 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) | For Purchase of Equipment’s, and machinery etc. |
| c) | To meet marriage or medical or educational expenses of family members including near relatives; |
| d) | To pay Debt or any other Dues including Pay advance Tax etc. |
| e) | To undertake repairs / renovation / extension to the residence / commercial property; |
| f) | Purchase of 2/4 wheeler vehicles, consumer durables; |
| g) | To purchase / construct house / flat, purchase of plot; |
| h) | For going on pilgrimage / tours/ excursions, etc; |
| i) | 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. |
| 4 | Others – Trust, firm including partnership firm, group, association of persons, Pvt./Ltd. company. |
| 5 | 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. change from time to time |
- Calculation of Quantum of Loan:
The sanctioned Laon 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/ Hypothecation of Stock |
| ii) | 25% to 40% of Average of DLC + Market Value of property. |
- Interest Rate
As per interest rates prevailing from time to time, In case of Loan limit interest would be charged on monthly basis.
- 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 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
The value of the property shall be got assessed form the approved valuer of the Bank.
- Personal Guarantee
Besides primary security as detailed above Third party personal guarantee of two persons having good credentials and adequate net worth shall required to be furnished for the security of the loan.
- Repayment Period
Maximum of 10 years (120 months) to be recovered in monthly instalments.
- Processing Fees
Term Loan repayable in monthly/half yearly instalment as per rates/charges prevailing from time to time, say it is 0.5% of the loan amount.
- Disbursement of Loan
Term Loan:In one & two instalments as per applicant’s/ borrowers need.
Morgage Overdraft Limit Against Property
This scheme provides 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 .
- Eligibility
Individuals, (it may include co-borrower) who are-
| 1 | Salaried Person |
| 2 | Professionals |
| 3 | Businessman/Others who are income tax payee. |
| 4 | Others – Trust, firm including partnership firm, group, association of persons, Pvt./Ltd. Company |
| 5 | 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. |
- Quantum of Advance:
| Minimum | Maximum | |
| Individuals/ Proprietorship Firm Partnership Firm/Company | Rs. 1.00 Lac | As per Bank Exposure. change from time to time |
- Calculation of Quantum of Loan:
The sanctioned Loan 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) | 25% to 40% of Average of DLC + Market Value of proper |
- Interest Rate
As per interest rates prevailing from time to time, In case of O.D. limit interest would be charged on monthly basis as charged/ calculated on CC/Hyp accounts.
- 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 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. A Agricultural land is NOT accepted as security for this facility.
- Personal Guarantee
Besides primary security as detailed above Third party personal guarantee of two persons having good credentials and adequate net worth shall require to be furnished for the security of the loan.
- Repayment Period
O.D. Limit: It would be reduced 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./C.C. Limit is not to be reduced yearly than it requires renewal every year.
WORKING CAPITAL (C.C.) LIMIT
This scheme provides working capital Hypothecation limit facility against Hypothecation of stock 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.
- Eligibility
| 1 | Businessman/Others who are income tax payee. |
| 2 | Professionals |
| 3 | Others – Trust, firm including partnership firm, group, association of persons, Pvt./Ltd. Company. |
- Quantum of Advance:
| Minimum | Maximum | |
| Individuals/ Proprietorship Firm | Rs. 1.00 Lac | As per Bank Exposure. 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 | 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) | 25% to 40% of Average of DLC + Market Value of proper. + 25% of Hypothecation of Stocks |
- Interest Rate
As per interest rates prevailing from time to time, interest would be charged on monthly basis.
- Personal Guarantee
Besides primary security as detailed above Third party personal guarantee of two persons having good credentials and adequate net worth shall required to be furnished for the security of the loan.
- Repayment Period
C.C Limit: it requires renewal every year.
- Processing Fees
a) Renewal yearly would require paying processing fee every year say @ 0.50% as applicable
BUSINESS LOAN/ C.C. LIMIT
This scheme provides working capital Hypothecation limit/ Loan facility against Hypothecation of stock at low rate of interest. The scheme is for people engaged in small trade, business and also professionals & self-employed, Proprietorship Firm, Partnership Firm and Individuals with small net worth. Businessman/Others who are income tax payee.
- Margin
| 25% to 40% of Average of value of Stocks |
- Interest Rate
As per interest rates prevailing from time to time. Interest would be charged on monthly basis
- Personal Guarantee
Besides primary security of Hypo. Of Stock, Third party personal guarantee of two persons having good credentials and adequate net worth shall require to be furnished for the security of the loan & Limit.
- Repayment Period
Limit: 12 months and it should be requires renewal every year.
In case of Loan: 60 monthly Instalments with interest.
- Processing Fees
a) Term Loan & C.C. Limit repayable it is 0.5% of the loan/limit amount.
- Quantum of Advance:
| Minimum | Maximum | |
| Individuals/ Proprietorship Firm, Partnership Firms | Rs. 0.25 Lac | Rs. 1.00 Lac |
- Interest Rate
As per interest rates prevailing from time to time. Interest would be charged on monthly basis
- Repayment Period
Limit: 12 months and it should be requires renewal every year.
In case of Loan: 60 monthly Instalments with interest.
- Processing Fees
a) Term Loan & C.C. Limit repayable it is 0.5% of the loan/limit amount.