Home Loan

Scheme for financing Housing Loan to Public

Eligibility:

Individuals having sufficient income. Joint owners are also eligible.

Purpose:

  1. For construction of house
  2. For purchase of built house/flat
  3. Purchase of under construction house/flat
  4. Purchase of land/plot for house building
  5. For carrying out repairs/ renovation / alterations/ cost of furnishing to the house/flat

Extent of Loan:

  • Need based loan depending upon the project cost and repaying capacity of the borrower.
  • For purchase of Land/ Plot for House Building: Maximum Rs.50 Lac. Further, it be ensured that the loan amount for purchase of Land/Plot under any circumstance is not more than 60% of the eligible loan amount as per the repayment capacity.
  • For repairs / renovation /alterations: Maximum Rs.25 Lac.

Margin:

Parameters Loan Amount Margin
For All purposes except to Housing Loan Upto Rs.75 Lac 20%
Purchase of Land/Plot Housing Loan above Rs.75 Lac 25%
Purchase of Land/Plot for House Building - 40%

Security:

Equitable/registered mortgage of the property.

Where mortgage cannot be created immediately in situations like house/flat is being purchased/allotted by the Housing Board, Development Authorities or Co-operative Society/Builder, and title/conveyance deed are executed in favour of purchaser only after completion of construction & possession/ making full payment of the cost of house/flat, a stamped Tripartite Agreement be executed amongst Housing Board/Development Authority/Co-operative Society/ Builder, the intending borrower and the Bank before release of the loan.

Repayment:

Loan along-with interest is to be re-paid in equated monthly installments within a period of 30 years inclusive of moratorium period, if any subject to maximum age of 65 years.

For carrying out repairs/ renovation/alterations to the house/flat: Loan along- with interest is to be re-paid in equated monthly installments within a period of 15 years inclusive of moratorium period, if any.

For Construction/ Additions of House/ Flat: Till completion of construction (including additions) or 18 months, from the date of disbursement of first installment of the loan, whichever is earlier.

For purchase of ready built House/ flat OR land/plot: The repayment to start after the date of possession or 3 months from the date of advance, whichever is earlier.

For carrying out repairs/ renovation / alterations to the house/flat: Till completion of repairs/renovation / alterations or 6 months, from the date of disbursement of first installment of the loan, whichever is earlier.

Repayment should be fixed on a realistic basis, which should not normally exceed the prescribed limit of Net Monthly Salary/Income (NMS/I) of the borrower(s).

Disbursement:

  • For outright purchase of house/flat & Plot, the loan will be paid in lump sum to the vendor at the time of registration.
  • For house/flat under construction, the loan amount will be disbursed in stages depending on progress of construction.
  • In case of repairs/renovation/alteration, Incumbents to ensure that after having disbursed 50% of the amount sanctioned, the subsequent disbursement (s) should be after proper verification that the amount earlier disbursed has been utilized as per estimates submitted by the borrower and that he has invested his pro-rata share towards required margin.

Insurance:

  • The property will be kept insured for reconstruction cost in respect of fire, riots and wherever required, against other appropriate hazards, such as earthquake, flood etc. by the borrower, with usual bank clause.
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