Housing Loan may granted for the purpose of
a. Acquisition of a house or flat or apartment,new or old .
b. Acquisition of a site or plot and construction of a house or flat or apartment thereon.
c. Construction of a house on a site or plot of land already acquired.
d. Extension or renovation of the house or flat or apartment already acquired.
e. Acquisition of an old house and renovation / extension thereof or acquisition of an old house, its demolition and reconstruction. Development of Dwelling House compound such as construction of Compound Wall, Sinking and repair of drinking water well etc.
Eligibility of Loans:
The intending parties must possess / proposed to purchase the minimum extent of land fixed by the Bank from time to time. The land so possessed / proposed to purchase, should be in the name of the borrower and should have clear title. The permanent employees of the Govt. /Semi Govt. Public limited Companies / Bank Employees may also be eligible for the loan provided they have at least 7 to 10 years of service to reach superannuation.
The maximum limit of Housing Loan is restricted to 48 times of the monthly pay in the case of salaried persons and 4 times of Annual Gross Income in the case of others. Subject to a maximum limit of Rs.30 lakhs. In case site purchase 20 Lakh.
Loans will be granted upto 75% of the valuation of property including the cost of investments to be made in the land.
Repayment of Loan will be by way of equal monthly instalment (inclusive of interest) and extended over a maximum of 15 years. The repayment of the loan will commence after the next month of completion of construction of house / purchase of house / flat or 12 months of the disbursement of instalment of the loan whichever is earlier. In case site purchase tenure is 10 years.
There shall be atleast one co-obligant / 2 surety owing immovable property / salaried persons / or such other persons as decided by the Bank from time to time.
The housing loan shall be secured by Mortgage of un-encumbered immovable property belonging to the applicant situated within the jurisdiction of the Society. In case of direct finance, it should be situated within the territorial jurisdiction of the Branch from where the loan is availed.
Rate of Interest:
The Rate of Interest shall be as decided by the Board from time to time subject to the direction of the RBI from time to time.