Scheme for Housing Loans (for purchase of House / Flats / Plots)

Housing / Home Loan

This scheme provides Term Loans for construction, purchase, renovation and refinancing of residential dwelling units, subject to Bank’s prudential norms.

Type of Facility

Term Loan

Purpose

  • Construction or purchase of new / old dwelling units (not more than 15 years old and in good condition).
  • Renovation of existing house / dwelling unit.
  • Repayment of loan taken from Housing Finance Companies / Banks.
  • Purchase of plot (house must be constructed within 2 years of purchase).

Subject to prudential exposure norms.

Eligibility

Individual(s).

Loan Amount

  • Up to ₹140.00 Lakh per dwelling unit.
  • Normally not to exceed 48 times the gross monthly income or 4 times the annual income.
  • Loans up to ₹50.00 Lakh for units valued ≤ ₹63.00 Lakh qualify under Priority Sector Lending.
  • MCL calculation as per IPSB LAP Scheme shall apply.

Margin

15%

Rate of Interest

As per Bank’s rules.

Repayment

  • Maximum 20 years, including moratorium, based on repayment capacity.
  • Moratorium up to 18 months from first disbursement or 1 month after house completion (whichever is earlier).
  • Interest during moratorium to be serviced as debited.
  • EMI (Equated Monthly Instalments) option available.

Security & Documentation

  • All usual loan documents as per Bank’s rules.
  • Mortgage of the house / flat constructed or purchased using the loan.
  • OR other adequate securities like LIC Policies, NSCs, etc.

Sureties

One or two sureties of good means, as per Bank’s discretion.

Other Conditions

  1. For old houses, certificate from Bank’s approved Architect confirming structural integrity and life exceeding loan term.
  2. Existing house owners may avail second housing loan for self-occupation.
  3. Employees provided with accommodation can avail loan and let out the property.
  4. Repayment capacity should normally be around 60% of income. Higher amounts may be allowed if family income is considered.
  5. Additions / repairs and supplementary finance allowed with second mortgage / adequate security.
  6. Estimates / valuation at three stages: at sanction, mid-construction and final stage.
    Physical inspection is mandatory.
  7. Construction loan requires approved plan and undertaking not to violate it.
    Completion certificate within 3 months of completion is mandatory.
    Architect must certify all stages.
  8. For built-up property, affidavit confirming construction as per sanctioned plan and certification by Bank-appointed Architect before disbursement is required.
  9. No loans for unauthorized colonies unless regularized and all charges are paid.
  10. No loans for properties applied as residential but intended for commercial use.