Retail Banking

MISC

“OVERDRAFT FACILITY TO HOUSING LOAN BORROWERS

 

FOR PERSONAL NEEDS”

 

1). OFFER OF THE SCHEME

 

 

Branches are required to make the offer in writing to all existing/new Housing Loan a/cs of our Bank or those acquired/being acquired by way of take-over from other Banks/HFIs. This be, however, subject to compliance of all other terms& conditions/guidelines such as KYC norms, CIBIL database check-up, take-over guidelines, security norms, maintenance of margin, other parameters of the Scheme, etc.

 

2). ELIGIBILITY:

 

 

All existing/new Housing Loan a/csof our Bank or those acquired/beingacquired by way of take-over from other Banks/HFIs.

 

For existing Housing Loan a/cs - No inspection irregularity is outstanding which has been identified as serious in nature and subject to fulfillment of all terms and conditions for facility under this scheme.

 

NRI/ PIO Housing Loan borrowers are not eligible for Overdraft Facilityunder this scheme.

 

Note:-The Overdraft Facility for personal use should not be sanctioned to the borrowers, who have availed loan for:

 

            (i)                     Purchase of plot, construction on which is yet to be completed; and

            (ii)                    Flats/ houses which are under construction.

 

3). NATURE OF FACILITY: In the shape of an Overdraft Limit. Borrowers toensure monthly servicing of interest component on the overdraft facility sanctioned.

 

4). PURPOSE: For Personal needs/use.

 

5). EXTENT OF LOAN

 

 

5.1       Minimum- Rs.50,000/- and Maximum- Rs.25.00 lakh

 

5.2       80% of current realizable value of housing property if the loan amount* (existingexposure of Housing loan + proposed OD limit) is upto Rs.75 lakh

 

OR

 

75% of current realizable value of housing property if the loan amount (existingexposure of Housing loan + proposed OD limit) is above Rs.75 lakh.

 

Enhancement of the existing OD limit within overall ceiling of Rs 25 lakhsmay be permitted only in such cases where the Housing loan is stillcontinuing and not in case where Housing Loan has been adjusted.

 

5.3      Repaying Capacity: Overdraft facility be set up in such a manner that alldeductions including servicing of interest on Overdraft should not exceed as permitted under Housing Finance Scheme to Public for various slabs which is as under:

 

NMS/I*

Max. Permissible Deduction of NMS/I

Up to Rs.30000

40%

>Rs.30000 to Rs.60000

50%

>Rs.60000 to Rs.100000

60%

>Rs.100000

70%

* Net Monthly Salary/ Income (NMS/I) is equal to {Gross Salary/ Income – Statutory Deductions such as Income Tax, Professional Tax, Other Tax Liabilities, PF etc.}

 

Further, General Manager (Credit) & above, shall permit higher % age deduction of NMS/I subject to Maximum 10% over & above the prescribed ceiling under eachbracket of NMS/I on individual merits of the case and after ascertaining expenditure pattern of the prospective borrower(s), i.e., GM (Credit) & above may permit deductions of NMS/I MAXIMUMupto50%, 60%, 70% and80% in the above bracket, respectively.

 

Note:While ascertainingNMS/I, NO new borrower (s) / Co-borrower(s)/jointborrower(s) is/are to be added and latest income of all borrower(s)/ Co-borrower(s)/Joint borrower(s)/ likely rental income/rental income considered at the time of sanction of housing loan is to be taken into account while determining the repayment capacity/assessment of loan.

 

6).      RATE OF INTEREST

 

0.5% above all the schemes as applicable and amended time to time in the case of Housing Finance scheme.

 

7).        SECURITY

Extension of charge/Creation of charge on the existing Mortgaged Immovable Property/IP to be mortgaged.

 

8.)        PROCESSING FEE & DOCUMENTATION CHARGES

Processing Fee - NIL

Documentation Charges - Rs.450/- (Excluding of S.T.)

9).        LOANING POWER:  As per Loan & Advances cirular No. 30/17 dated 04.11.2017 and as amended time to time, Subject to maximum ceiling of Rs.25 Lakh under the scheme and subject to the condition that the total exposure to a single individual borrower, takentogether, does not exceed the ‘aggregate secured fund based powers’ of thesanctioning official, in terms of the loaning power chart.s

 

The branches are permitted to sanction/ review overdraft limit to existing housing

loan borrowers within their vested loaning power.

 

The above loaning powers can be exercised by the officials even where existing

facilities including the Housing Loan have been sanctioned by a higher authority.

 

10).     DOCUMENTATION

 

i)          Offer Letter - Annexure – II duly acknowledged and accepted on the ‘Terms And Conditions of the Sanction’;

            ii)         Overdraft agreement - Annexure – III;

            iii)        Mortgage deed (wherever applicable) for the amount of OD - Annexure – IV;

 

iv)        Further, for equitable mortgage, procedure as given at Chapter 11 of book of instructions on Loans;

            v)         Undertaking as per term and condition no. 11 below.

 

11). OTHER GUIDELINES

 

11.1    In case the interest is not serviced within 07 days of the close of the month, the borrower shall be liable to pay penal interest @ 2% over and above the applicable rate on the amount of default and for the period of default. An undertaking to this effect be obtained from the borrower.

 

 

11.2    In case the interest is not serviced consecutively for two months, Bank may consider recalling the overdraft including housing loan.

 

11.3    The borrowers will be allowed to route their surplus funds in the overdraft account, be it the salary or other savings, and withdraw the same at their choice, upto the extent of the overdraft limit.

 

12). REVIEW OF OVERDRAFT FACILITY:

 

The overdraft facility should be reviewed annually. The Overdraft facility can becontinued/ renewed, even after the Housing Loan is paid fully provided the sanctioning authority is satisfied about the repaying capacity of the borrower and the value of security.

 

13). REPORTING OF THE FACILITY

 

Reporting of the facility will be carried out under the Mortgage Loan Scheme.

 

 

14).  SCHEME/ INTEREST CODES

 

 

 

Scheme Code

: ODPRH

 

 

 

Interest Table Code

: ODPUB

for

housing  loans

upto  less  than

 

Rs.75.00

Lakh

and ODPAB  for

housing loans of

 

Rs.75.00 Lakh and above.