Housing Loan
Maximum Loan
Up to ₹ 70 Lakh
Age Limit
Max 60 Years
Processing Fee
0.5% (min ₹500)
Moratorium
Up to 18 Months
Purpose
Purchase of Land
Repair, alteration and additions to houses / flats by individuals
Construction / Purchase of house / flat by individuals
Interior furnishing (New House / Flat)
Margin & Loan Limits
| Purpose | Eligible Finance / Margin |
|---|---|
| Purchase of house / flat | 85% of cost or Avg DLC & Market Value (whichever is less, incl. registry charges) |
| Construction of house | 80% of estimated construction cost |
| Purchase of land | 60% of cost of land |
| Conversion / regularisation charges | 90% of charges paid to Govt. Authority for registered lease deed / patta |
| Wooden work | 50% of wooden work cost |
| Income-based ceiling | 48× monthly income OR 4× yearly income (up to 5× in genuine cases) |
| Repair, alteration & interior furnishing | Maximum ₹5.00 Lakh |
Housing Loan sanctioned above ₹28 Lakh shall be out of Advances to Priority Sector. The maximum loan must not exceed 15% of capital fund (individual) or 25% (group of borrowers).
Interest Rate
Interest is charged on a floating basis using the reducing balance method on a monthly basis at the rate prevailing from time to time as per Bank's Policy.
On default of EMI, penal interest may be charged at the prevailing rate as per Bank's Policy.
Pre-payment / Advance payment accepted only with prior permission / approval of the Bank. A pre-payment premium may be charged as decided from time to time.
Security
Primary Security: Mortgage of residential plot / house / flat / immovable property belonging to borrower and co-borrower.
Legal opinion & non-encumbrance certificate shall be obtained from the Bank's panel advocate on acceptance of title documents of the property.
Eligible Category
Salaried Persons
Self-Employed (Business / Profession)
Association of Persons
Max 60 years
Co-borrower required if age is above 60 years.
Maximum Loan
₹ 70 Lakh
Max Repair / Furnishing Loan
₹ 5 Lakh
Processing Fee
0.5% (min ₹500)
Moratorium Period
Up to 18 months
Pre-EMI Interest
On part disbursement
Full EMI
Post full disbursement
Insurance
Insurance coverage of the property and other general terms & conditions of the Bank are also applicable.
Pre-Disbursement Conditions
Disbursement of the sanctioned House Loan will be made only after execution of loan documents and obtaining original title documents of land / property proposed to be mortgaged to the Bank, as mentioned in the sanction letter, along with PDCs and Insurance Policy etc.
Case A — Ground Floor Only
Loan sanctioned only for ground floor construction
1st 25%
Construction reaches plinth level
2nd 25%
Roof shuttering completed & iron for roof verified at site
3rd 25%
Completion of plaster
4th & Last 25%
Flooring, woodwork of doors etc. in progress
Case B — Land + Ground Floor
Land Portion
Released in one instalment after obtaining registered title documents, verification of payments, PDCs & Insurance Policy.
Construction portion — disbursed in 4 instalments as in Case A above.
Case C — Land + Ground & First Floor
Loan sanctioned for land and construction of ground + first floor
Land Portion
Released in one instalment after registered title documents, PDCs & Insurance Policy.
1st 15%
Construction reaches plinth level
2nd 20%
Roof of 1st floor laid, shuttering done & steel verified at site
3rd 25%
Roof of 2nd floor laid & steel verified at site for 2nd floor roof
4th 20%
Plaster of both floors completed
5th & Last 20%
Flooring and woodwork of doors etc. in progress
Note
If construction is already at an advanced stage (roof already laid or finishing in progress), the 1st & 2nd instalments may be released simultaneously after recording facts on file.
Site inspection shall be carried out by the Branch Manager or Second Officer. The 1st and last inspections must be conducted by the Branch Manager personally.
Repayment
Moratorium Period
Up to 18 Months
From date of first disbursement
During Part Disbursement
Pay Pre-EMI Interest
Interest on disbursed amount only
After Full Disbursement
Regular EMI Begins
Principal + Interest combined
A) Housing Loan for Building Construction
A copy of the approved / sanctioned plan issued by the competent authority in the name of the applicant must be obtained with the application.
An affidavit-cum-undertaking must be obtained stating the applicant shall not violate the sanctioned plan, construction shall be strictly as per plan, and a completion certificate shall be furnished within 3 months of completion.
A Bank-approved architect shall certify at various stages of construction that work is strictly as per the sanctioned plan and certify completion.
If the plot size exceeds 500 sq. mtrs., a completion certificate from the competent / local authority must be obtained by the applicant and further certified by the Bank's approved chartered architect / engineer.
B) Housing Loan for Purchase of Constructed Property
An Affidavit / Undertaking shall be furnished by the applicant that the built-up property has been constructed as per the sanctioned plan and / or building bye-laws, along with a completion certificate.
A Bank-approved Architect / Chartered Valuer shall certify before disbursement that the property is strictly as per the sanctioned plan and / or building bye-laws.
About This Scheme
This scheme provides working capital Hypothecation limit facility against hypothecation of stock at low rate of interest. Designed for people engaged in trade, commerce & business, professionals & self-employed, Proprietorship Firms, Partnership Firms, Companies, and Individuals with high net worth.
Restrictions
No loan will be granted for properties falling in the category of unauthorized colonies unless regularized and developed by the competent authority.
No loan will be granted for properties meant for residential use but which the applicant intends to use for commercial purposes and declares so while applying.
Documents Checklist
- Loan application form
- Approved / sanctioned building plan
- Original title documents of property
- Affidavit-cum-undertaking (construction / purchase)
- Completion certificate (within 3 months of completion)
- Architect's stage-wise certification
- Non-encumbrance certificate
- Legal opinion from Bank's panel advocate
- PDC (Post-Dated Cheques)
- Insurance policy of property