INDIVIDUAL HOUSING LOAN SCHEME FOR THE GENERAL PUBLIC
Purpose:
The bank may render credit assistance for:-
1.Purchase of a house site for construction of a house there on.
2.For a construction of a house property over the site.
3.Purchase of a ready built house/flat.
4.Extension/improvement of the existing house/flat.
5.Purchasing a flat under construction.
Eligibility:
Individuals having an assured source of income viz. salaried
employees, self employed professionals, businessmen , farmers etc.,
Permissible amount of Loan:
The loan may be granted upto 75% of the total cost subject to a
maximum of RS.25.00 Lakhs.In respect of advance against plot or land ,
the amount of loan shall not exceed 50% of the cost of the plot and the
cost of construction of the house. However, it shall also be ensured
that the quantum of loan does not exceed 48 months net salary /income
of the applicant or last year income in respect of professionals /
others as per IT returns.
Documents to be given:
1. In respect of salaried employees, while computing the net income,
salary certificate from the employer should be given.
2.In respect of self employed professionals , the income is
calculated based on the It return submitted by the borrower.
3. In respect of the farmers/ rural artisans the net income should
be calculated based on the details of land holdings and income from
allied activities and other sources if any after deducting the amount
of crop loans and other loans.
Margin:
A Margin of 25% is to be brought in at each stage of disbursement of
the loan.
The Loan to be repaid within a maximum period of 10 Years in equated
monthly installments for business people and 15 Years for Salaried
Class.
Security:
Equitable Mortgage Charge of house site together with the
construction to be made thereon / ready built house/flat for which the
loan has been granted.
Processing Fees:
Processing Fees at 1% of the loan amount to be charged. And no other
hidden charges as charged by other banks
Insurance:
Insurance to be got effected over the immovable property held as
security at the cost of the borrower and also the clear title and
marketable over the immovable property
Other Documents:
1.For Documents of title of the Bank's Legal advisor opinion is
must.
2.Copy of the approved site plan for the proposed construction.
3.Valuation report by the bank's approved Engineer for the proposed
construction or ready built house is must.
4.Third party guarantee on an individual with comparable
..mean is needed
Disbursement of the Loan:
The Loan should be disbursed in suitable stages duly considering the
requirement of funds and progress of work.
Other Conditions:
1.The bank shall have the first charge by way of mortgage on
property including additions/alterations made therein.
2.Disbursement of loan shall be effected only after all
documentation formalities completed.
3.Disbursement of loan is to be effected only by account payee pay
order/Demand Drafts directly in favour of the seller/ builder/ vendor/
society , etc.,
4.In case of construction of house, loan to be made in stages in
accordance with a phased program as under:-
a) 25% when relative plan is sanctioned
b) 25% for construction up to the plinth level against
production of certificate from the
Engineer
c)25% for construction up to the celling level against
production of certificate from the
Engineer.
d) Balance on completion of roof against the Certificate
from the Engineer.
5.In respect of ready built house payment may be made in one lump
sum
6.The Construction should be completed with in a maximum period of
18 Months of the date on which the first disbursement of the loan in
made.
