| Purpose | To provide loans for Agri-Allied activities, business, education, medical treatment, trade, construction activity – repairs to immovable property, marriage, Domestic needs, etc., The prospective borrower should be a customer of the Bank with SB or Current A/C in the Branch duly complying with KYC norms. |
|---|---|
| Application | All the Mortgage loans are to be sanctioned in the joint names of the borrower and the spouse. |
| Area of operation | Collateral security of immovable house property to the extent of 100% of loan amount under HMDA limits, Nagara Panchayat and Mandal Panchayats standing in the names of borrower agriculture lands standing in the name of borrower coming under area of erstwhile Hyderabad/Rangareddy districts. |
Age of building | Not more than 15 years old for Flat/Apartment. Not more than 25 years old for independent house. |
| Collateral Security & Maximum loan | 1. 80% of the market value of the House/Flat as given by the Panel valuers or value given by the Bank’s Engineer or EMI eligibility of the Borrower whichever is less, subject to a maximum of Rs.25.00 lakhs. |
| a) Housing | 2. 100% of the Agriculture Land values as per sub Registrar/ Tahsildar value or eligibility of the borrower whichever is less subject to the maximum of Rs. 25.00 lakhs. The land and building valuation as per market value estimated by empaneled approved valuers and/or Bank’s Engineer separately. Valuation of the Property: |
| b)Agricultural Lands/Open Plot. | 1. Value obtained from SRO/MRO of assurances. 2. Market value certified by officer conducting filed inspection and restricted to 300% item no. 01. Value assessed by panel valuers of the Bank (For House Property) Loan will be restricted 100% average value of the above 3. |
Eligibility criteria/ EMI Ceiling. | In case the main applicant (owner of the property) has no sufficient income to repay the loan, the income of the Co-applicant to the loan also to be considered and such Co-applicant must be spouse/ children. EMI for the Mortgage loan should be limited in such a way that Total EMIs of any current loans including the requested Mortgage loan should not exceed 66.66% of the net income (i.e., at least 33.33% of Net Income as take home income). |
a) Employees | Rental income and agricultural income can be included as declared in I.T. returns. Minimum 3 years of regular service in organizations of good standing are acceptable to the Bank for this purpose. |
| b)Self Employed/ Professional/ | Must be an IT assesse. |
Businessmen | Left over income after including the proposed loan should be at least 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 Agr-income and other income should be sufficient to repay the installment after meeting his/her all agriculture and family expenses. |
Repayment | On monthly EMI basis for Employees and Self Employees On MLY/QLY/HLY/YLY for Farmers based on the crop for both Agr/Agr Allied. Maximum 7years or attainment of 65 years of age whichever is earlier |
Rate of interest | Fixed Rate of interest at 11.50% p.a. |
Security | Collateral security of immovable house property to the extent of 100% of loan amount under HMDA limits and Mandal Panchayats standing in the names of Student/Guardian or Parent/Guarantors (nearest relatives) and 100% agriculture lands standing in the names of Student/Guardian/Parent or Guarantors. Valuation of the Property: 1. Value obtained from SRO/MRO of assurances 2. Market value certified by officer conducting field inspection and restricted to 300% item no.01 Value assessed by panel valuers of the Bank ( For House property) Loan will be restricted 100% average value of the Above 3 and equitable mortgage, at the cost of borrower to be notified to the concerned SRA/ Tahsildar so that Bank’s claim is reflected in EC. |
| 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 the loan amount subject to maximum of Rs 10000/-. Borrower also to bear cost of stamping on memorandum of deposit of title deeds plus notification charges and E.C. Charges, as per rules in force. Advocate fee of Rs.2500/- and Valuator fee(based on the bill given by the valuator), B- Class of Rs 100/- and Admission Fee of Rs 10/- will be collected from the prospective borrower. |
Pre closure charges | No charges for foreclosure and take over. |
| Others | a) 2% penal interest on defaulted installments. b) Borrower to bear all legal charges, in case of legal action. |
Admission of loan applications | The following documents to be furnished along with application at Branch level: · Proof of identity: KYC (Aadhaar card, Passport, Driving licensee, PAN card, employee ID, etc. of Applicant & Co-applicant. · Bank statement for preceding 6 months of applicant and co-applicant. Bank statement for one year in case of private employees. · Passport size photographs of the applicant and co-applicant. · Proof of income: 6 latest monthly salary slips for employees. · IT returns for the last three consecutive financial years with Barcode duly acknowledged by the ITO with computation of income, for professionals/ self-employed. · Firm and VAT registration copies. · Detailed project report. Papers relating to the proposed property: i)Copy of sale deed along with link documents for 13 years (30 years if considered necessary based on merits of the case) ii)Encumbrance Certificate for a minimum of 23 years (30 years if necessary) iii)Tax paid receipts · (property tax, Municipal tax, Electricity Bill and Water Bill) iv)Copy of the approved plan from appropriate authority v)Road map of the House/Flat vi) BRS for old buildings vii) Proof of age certificate for non-employed persons (SSC certificate or Medical certificate (Xerox copy). Viii) Location sketchalong with land marks, photo of the building with attestation by the property owner. viii) After due verification of KYC of applicant and co-applicant, the Branch Manager should visit the proposed property, residence, work place of the applicant and co-applicant(Address of property should match with the details mentioned in the document) and forward the loan application with due recommendation to HO. ix) Any other documents which may be considered necessary as per requirement of the case. · In case of Farmer based family i) Dharani Land details,1-B, Encumbrance search and Valuation ii) 15 years Old pahani iii) Encumbrance search for last 20 years from SRO iv) Title deed issued by Telangana Govt. v) Sale deed, 13B,13C, ROR and other linked documents |
| In case of salaried class: | a) Salary slips with details of deductions for the last 6 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 pay particulars of the applicant & co-applicant 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 class: | 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 organization run by him, original. c) Copies of Licenses/ Registration Certificate issued by Govt. and other competent authorities to undertake business/practice profession. |
| In case of farming based | Income from Crops based on the local condition and Income from Allied activities subject to the ceilings as per TSCAB guidelines issued for KARSHAKAMITRA LOAN |
| Legal Scrutiny | The copies of the documents related to the property being acquired through the loan will be first sent to the Legal Advisor of Bank for legal opinion. SLC is also responsible for SRO search of the documents to decide about the genuineness of the documents. |
Valuers Scrutiny | The copies of the documents related to the property will be sent to the Valuator of Bank separately for valuation of the property. |
CIBIL SCORE | Approved Credit rating of the proposed Borrower/s as available in the sites of the leading Credit Rating Agencies. CIBIL Report 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. |
Documentation | i) After sanction of loan by the competent authority, the same will be advised to submit original title deed documents to the HO. ii) One designated officer of HO will get execution of loan agreement by the Applicant and co-applicants. |
| Process at Branch | On receipt of application duly filled in with all details, photos, KYC etc and enclosures as mentioned above, a pre sanction field inspection by Branch Manager and Supervisor followed by personal interview and discreet enquires about repaying capacity of the borrower and co-applicants. After scrutiny at Branch the AGM/DGM/GM along with Branch Manager and Supervisor will conduct the field inspection. The AGM/DGM/GM after appraising the income source to repay and recommend to sanction the loan, the branch has to forward the file to HO to obtain legal opinion. |
| Process at Head office | The HO will obtain legal opinion on title of properties within 3 days. Then L&A section will scrutinize, appraise and asses the loan and recommended for sanction if it is in conformity with the loan policy or otherwise declining. After sanction the communication will be sent to Branch. |
| Documents to be obtained for release of loan amount: | a) Registered sale deed of House/Flat/Land, executed in party’s favour, along with Memorandum of Deposit of Title deeds with the Bank, under equitable mortgage. b) Insurance policies duly assigned in favor of the Bank. c) Notification of Equitable Mortgage and obtain EC with Bank’s interest recorded. d) Demand Promissory Note. e) Acceptance Letter. |
Share Capital (refundable) | Nominal share capital of Rs.100/- and admission fee of Rs.10/- each to be collected from the and Co-applicants and Nominal membership application to be obtained in the prescribed form. |
Disbursement of loan: | After completion of documentation and submission of original documents such as execution of loan agreements, equitable mortgage etc., sanctioning authority will pass orders for release of sanctioned loan amount to the savings account of the Borrower with the Bank. |
Physical Verification of Property/Inspection | Post sanctions inspection of the property to be done by the Branch Manager once in a year and furnish the report 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 H.O. |
| Custody of documents | Head Office shall keep the documents, Title deeds, Loan agreement, Equitable mortgage papers, ECs, etc., under joint custody. |