| Purpose | Providing loansto individuals (other than NRIs) either single or jointly, along with the spouse or son or unmarried daughter for House construction or purchase of independent House/Flat.The prospective borrower should be a customer of the Bank by opening an SB or Current A/C in the Branch nearest to his residence duly complying with KYC norms. |
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| Application | All the Housing loans are to be sanctioned in the joint names of the borrower and the spouse/ Co- applicant. |
| Area of operation | All the areas coming under HMDA limits and Nagara Panchayats. |
| Age of building | Not more than 15 years old for Flat/Apartment. Not more than 20 years old for independent house. |
| Maximum loan | Maximum component of the loan of Rs. 75.00 lakhs for construction/ purchase of House/ Flat. |
| a) Quantum | Computation of Value of House or Flat. In case of house purchase, 75% of the market value of the House/ Flat as given by the Panel Valator (value given by the Bank’s approved Engineer) subject to 75% of amount indicated in the agreement of sale entered into with the vendor and EMI eligibility of the Borrower whichever is less. |
| b) Ready built house. | Incase of house construction 75% of the estimated value of the proposed house construction (Estimation given by the Bank’s approved Engineer) subject to EMI eligibility of the Borrower whichever is less. |
| ii)New construction | |
| Eligibility criteria/ EMI Ceiling. | EMI for the Housing loan should be limited in such a way that including EMIs of any other current loans of the borrower should not exceed 66.66% of the net income (i.e.atleast 33.33% of Net Income as take-home income). The quantum of loan amount will be up to times of his net salary subject to the fulfillment of 1/3rd take home salary and left over service will be not less than 10 years. Minimum 3 years regular service in organizations of good standing as are acceptable to the Bank for this purpose. |
| a) Employees | Rental income and agricultural income can be included as declared in I.T returns. Income of the spouse/ children who are co-obligants also to be considered for arriving at the loan eligibility. |
| b)Self Employed | Must be an IT assessee. Left over income after all EMIs (including the pursuing loan) should not be less than 1/3rd of the gross income as per last 3-years IT returns. |
| c) in case of farmer | In case of borrower is being a farmer he/she should possess minimum of 3 acres agriculture land, the agri-income and other income should be sufficient to repay the installment after meeting his/her all agriculture and family expenses. |
| CIBIL Score | CIBIL score of the Borrower should be recorded and minimum score should be 600 as per version 2.0. CIBIL Report should be obtained from Head Office only. CIBIL Reports furnished by the Borrower should not be accepted. |
| Repayment | On monthly EMI basis Maximum 15 years or attainment of 65 years of age whichever is earlier. In case of ready built House/Flat, repayment starts immediately from the succeeding month after disbursement. In case of construction, the repayment will start after 18 months, if so opted by applicant or completion of construction of House/Flat whichever is earlier. |
| Rate of interest | Fixed Rate of interest at A) 9.75% p.a. B) 9.00% p.a to Staff |
| Security | Equitable mortgage of the proposed house (plot/flat) for Urban/ Municipal area in favor of the Bank at the cost of borrower to be notified to the concerned SRA so that Bank’s claim is reflected in EC (Registered Memorandum of Deposit of Title Deeds) |
| Insurance | Insurance of building financed for a minimum of 100% for full loan period/amount or for total value of the house whichever is higher against risks like fire, terrorist attacks, earthquake, floods etc., |
| Processing Fee | 1% of loan amount subject to a maximum of Rs.10,000/- + GST charges.Advocate fee of Rs.2,500/- and Valuer’s fee as per valuator reportand B- Class of Rs500/- (share capital for Rural area) will be collected from the prospective borrower. |
| Share Capital | Nominal Share capital is 1% of loan amount Subject to a maximum of Rs. 25,000/- and admission fee of Rs.100/- each to be collected from the Applicant and Co-applicants and Nominal membership application to be obtained in the prescribed form. |
| Prepayment/Foreclosure charges: | Rs. 10,000/- + GST Charges |
| Other Charges | a. 2% penal interest on defaulted installments. b. Borrower to bear all legal charges, in case of legal action. |
| Documents required for admission of loan application | The following documents to be furnished along with application at Branch level. a) Proof of identity: KYC(Aadhar card, Passport, Driving licensee, PAN card, employee ID, etc.) of Applicant & Co-obligant. b) Bank statement for preceeding 6 months of applicant and co-obligant. However, Bank statement for one year in case of private employees. c) Passport size photographs of the applicant and co-obligant. d) Proof of income: 6 latest monthly salary slips for employees. e) IT returns for the last three consecutive financial years with Barcode duly acknowledged by the ITO with computation of income, for professionals/ self-employed. f) Firm and VAT registration copies. g) Proof of age certificate for non-employed persons (SSC certificate or Medical certificate (Xerox copy). Papers relating to the proposed property: i)Copy of sale deed along with link documents for a minimum of 13 years (30 years if considered necessary based on merits of the case) ii)Agreement of sale. iii)Letter of allotment from Housing Board/ Society etc., (wherever applicable) iv)NOC from Society, Builder v)Encumbrance Certificate for 23 years (30 years if necessary) vi)Tax paid receipts (property tax, Municipal tax, Electricity bill and Water bill) vii)Copy of the approved plan from appropriate authority viii)Permission letter for construction from GHMC/ Competent authorities ix)Estimation cost report from approved Architect/Structural Engineer (For construction of house) x)Road map of the proposed site/House/Flat xi) BRS for old buildings xii) Tripartite agreement: a. in case of development authority/housing boards etc b. In case of private builders c. In case of Group Housing Societies xiii)Original receipt for the payments already made to the builder/vendor. xiv)Location sketch along with land marks, photo of the building with attestation by the Vendor and Vendee. xv)After due verification of KYC of applicant and co-obligant, the Branch Manager should visit the proposed property, residence, work place of the applicant and co-obligant(Address of property should match with the details mentioned in the document) and forward the loan application with due recommendation to HO. xvi)Any other documents which may be considered necessary as per requirement of the case. xvii)Where House/Flat is being purchased from the Housing Board/Govt. Institution/ Builder, the original letter of allotment/ Agreement for sale should be obtained from the agency/ builder who are providing the House/Flat to the applicant. xviii)In case of allotment of flat/ house by a Society, the original share certificate/ allotment letter issued by the Society to the allottee along with copy of the bye-laws of the Society concerned should be obtained and kept on record. xix)The society must be advised of the Bank’s interest in the evidencing title of the borrower to the property being purchased. |
| Construction of House/Flat | a) Detailed estimates from an Architect. (Original) b) Copy of approved lay out plan in respect of ventures/newly developed colonies. |
| Purchase of flat/ house | a) Original stamped agreement of sale executed between the applicant and the builder/ vendor (sometimes the agreement of sale is a tripartite agreement executed jointly by the land owner, builder and applicant for the undivided share of the land and flat) OR Original stamped agreement of construction along with registered Sale Deed for the undivided share of land. b) Original allotment letter from the builder and copy of the bye-law of the society/ association of flat owners. c) The Verification officer has to ascertain whether any charges are created by the Builder with any Financial Institution for availing project finance and in such case the charge on the Flat/House to be released by the Financial Institution on payment of agreed sum. |
| In case of salaried | a) Latest Salary slips with details of deductions for the last 3 months. b) Service Certificate from the employer including undertaking to deduct and pay monthly installments, from salary, wherever possible. c) The Verification Officer is required to verify the pay particulars of the borrower from the original records. d) The Verification Officer is required to ascertain whether the officer who had given letter of undertaking for deduction and remittance of EMI is competent to issue letter of undertaking. |
| In case of self employed | a) Balance Sheet and Profit and Loss Accounts of the business/ business address proof copy, profession along with copies of individual income tax returns for the last 3 years, certified by a Chartered Accountant. b) A note giving information on the nature of business/ profession, form of organisation run by him in original. c) Copies of Licences/ Registration Certificate issued by Govt. and other competent authorities to undertake business/ practise profession. |
| In case of farmer | Income from crps based on the local condition. Income from Agri allied activities. Income from hiring of farm equipment Income from other sources based on submission of essential proofs. |
| Legal Scrutiny | The copies of the documents related to the property being acquired through the loan will be first sent to the Legal Officer for his legal opinion. |
| Valuer Scrutiny | The copies of the documents related to the property will be sent to the approved Panel Valuer and/or Bank’s Engineer for valuation of the property. |
| Physical verification/ inspection | One officer will conduct verification of employment/ business of the applicant and co-obligant, income of the applicant and cross check the KYC and also conduct physical verification of the property along with Branch Manager/ 2nd Manager concerned. Basing on the Legal report, Valuer report and repaying capacity of the applicant and co-obligant, the HO officer will process the loan application. In case of construction, photographs of the building under various stages in support of completion of work shall be obtained by Bank Officer. Post sanction inspection of the property to be done by the Branch Manager once in a year and furnish the report on recovery to HO. If repayment is in arrears for two(2) successive months, inspection should be conducted immediately and for NPAs at monthly intervals by Branch Managers and report on recovery to be furnished to HO. |
| Documentation | After sanction of loan by the competent authority, one designated officer will get execution of loan agreement by the applicant and co-obligant. |
| Disbursement of loan: | a) After completion of documentation such as execution of loan agreements, etc., sanctioning authority will pass orders for release of sanctioned loan amount. b) Loan amount will be disbursed directly to the vendor in case of direct purchase of ready built flat/house. For own construction of House, loan will be disbursed by Credit to SB A/c or Current Account of loanee at the concerned Branch. For Flats/ Houses being constructed by builder/ vendor, the loan instalments will be paid directly to builder/ vendor. c) In case of construction of House/Flat, the loan amount will be released in installments as per the terms and conditions of the sanction order.The installments will be released in the following manner: · 30% at Basement level · 40% at Slab level · 30% at finishing level d) before releasing subsequent instalments, verification and certification regarding utilization of amount already released will be done by the Bank Officer. e) The Branch Manager should attend the Registrar office and ensure the entry of BC/ DD in Sale deed at the time of registration and · take a photograph with vendor and vendee while handing over the BC/ DD to the vendor. · obtain receipt of registration and collect the original Sale deed directly from the SR office. · Ensure equitable mortgage of the property done in favour of Bank and obtain EC with Bank’s interest recorded. |
| Documents to be obtained after release of loan amount: | a) Original registered sale deed, executed in party’s favour, along with Memorandum of Deposit of Title Deeds with the Bank, under equitable mortgage and link documents. b) Insurance policies duly assigned in favour of the Bank. c) Notification of Equitable Mortgage and obtain EC with Bank’s interest recorded. |
| Custody of documents | The documents will be in joint Custody of respective A.G.M and Manager. The documents like Title deeds, Loan agreement, Equitable mortgage papers, ECs, etc., should send to HO. |
| Review | Aspects like security, possession, latest valuation, repaying capacity etc., shall be reviewed,if necessary |
| Completion certificate | Completion certificate from the borrower & Branch Manager, in case of construction of House to be furnished. |
| Post verification | After completion of construction, verification of the property to be done by the Branch Manager. |
| Security | Equitable mortgage of the proposed house (plot/flat) for Urban/ Municipal areas in favor of Bank at the cost of borrower to be notified to the concerned SRA so that Bank’s claim is reflected in EC. |