HOUSING LOAN SCHEME

PURPOSE  :       

To purchase or construct a new house/flat.

To purchase an existing (old) house/flat.

To extend, repair, renovate or alter an existing house/flat.

To purchase a plot of land for the purpose of construction of a dwelling unit.

Two house loans may be given depending upon repayment capacity.

To take-over of house loans from other Banks/Fis.

ELIGIBILITY : 

Individual(s) over 18 years of age with a steady source of income, including persons engaged in agriculture and allied activities. 

LOAN AMOUNT :    For Borrowers over 18 years to 45 years of age: 

60 times the Net Monthly Income or 5 times Net Annual Income or upto a period generating EMI < 57.50% of NMI, whichever is less.  

For Borrowers over 45 years of age: 

48 times the Net Monthly Income or 4 times the Net Annual Income or upto a period generating EMI < 50% of NMI, whichever is less. 

Income of spouse can also be considered if the property is jointly held with the spouse and the spouse is a co-borrower or the property is held in single name and the spouse stands as a guarantor. 

Regular income from all sources as also rental from house/flat being purchased can be considered. 

Cost of furnishing and consumer durables may be included in the project cost up to a maximum extent of 10% of the project cost or maximum of Rs.2 lacs, whichever is lower. 

Where the loan is for purchase of Plot of land for the construction of a dwelling unit or repair or renovations the Maximum loan amount should be limited to Rs.20 lacs. 

SECURITY :  Mortgage of property & Check-off facility or Post dated cheques or Third party guarantee.

MARGIN :      

Purchase of land meant for construction of dwelling unit: 

20% of the cost of land including registration, stamp duty etc. 

Purchase of New or Old House/Flat or construction of House/Flat: 

15% of the total project cost including cost of land, additional amenities, registration amount, stamp duty etc.

Repair, renovation, extension or alteration of an existing house  

20% of the project cost.

INTEREST RATE w.e.f. 01.04.2008: 

(Floating rate of Interest)

Loan amount upto Rs. 20 lakhs
Upto 5 years 3.25% below BPLR  i.e. min. 10.00% p.a
Above 5 years and upto 15 years 3.00% below BPLR i.e. min. 10.25% p.a
Above 15 years and upto 25 years 2.75% below BPLR i.e. min. 10.50% p.a
Loan amount above Rs. 20 lakhs
Upto 5 years 3% below BPLR  i.e. min. 10.25% p.a
Above 5 years and upto 15 years 2.75% below BPLR i.e. min. 10.50% p.a
Above 15 years and upto 25 years 2.50% below BPLR i.e. min. 10.75% p.a

(Fixed rate of Interest)

Repayment period upto 10 years 12.25% p.a.

REPAYMENT: 
The maximum repayment period allowed is 20 years by way of EMI (including a moratorium of 18 months from the disbursement of first instalment of the loan or completion of construction, which may be earlier).


Flexible Monthly Instalment option also available under Customised Housing Loan Scheme.

INSURANCE :         

Required. It should cover all risks.

Life Insurance of the borrower is also available on concessional premium.

PROCESSING FEE: Up to Rs.25000/-                                              : NIL

Loan above Rs.25000/-                        0.50% of Loan amount.

(waived in case of Loan sanctioned under Plus schemes.

DOCUMENTS REQUIRED

Sale Deed/Agreement of sale

Copy of approved drawings of proposed construction/purchase/extension.

Detailed cost Estimate/Valuation Report from Chartered Engineer/Architect.

Non-Encumbrance Certificate for 13 years.

Salary Certificate & Form 16 of previous year.

Allotment letter of Co-operative Society/Housing Board (If applicable),in original

NOC from society/builder.

Identity & Address proof.