Housing Loans

Eligibility

Loans shall be sanctioned to the A Class members of the bank and the applicant should own the land or plot on which the construction is proposed

Application of Loan

Loan will be available for

  • Construction of new house
  • Outright purchase of a house and house site
  • Extension or renovation of existing house

Limit of Assistance

The loan amount for the construct/outright purchase/remodeling and expansion of houses shall be fixed as a maximum amount of Rs.50 lakhs

Disbursement

Housing loan shall be limited to 80% of the expenses required for the construction, extension or renovation or for the purchase.

  • In the case of construction of new house 50% of the loan will be advanced in the first instance and the balance in convenient installment after utilization of the 1st installment. After completion of work a certificate of completion duly signed by a competent engineer shall be obtained
  • For additions and improvements the loan will be released in convenient installments
  • For the outright purchase of house or house site the sale shall be effected in favour of the bank and the borrower together as mortgage and mortgager respectively and the bank shall directly pay the seller

Repayment/ Tenure of loan

Loan shall be repaid in equated monthly installments spread over a maximum period of 18 years. Borrowers are free to remit more than one installment or lumpsum at any time. Repayment holiday will be granted till the completion of construction or 12 months from the date of disbursement of first installment, whichever is earlier

Interest Rate

Rate of Interest will be : 14%

Collateral Security

Advance is made against the mortgage of landed property as equitable mortgage or registration. Building shall be insured at the cost of the borrower and the insurance policy shall be assigned in favour of the bank

Share Linking

Share linking will be 3.50% of the loan amount

Authority to sanction the loan

  • Title deeds
  • Tax Receipts of the property & Buildings, if any
  • Encumbrance certificate for 20 years
  • Plan and Estimate of the building proposed to be constructed duly certified by a competent authority
  • Possession Certificate
  • Location Certificate and Sketch etc
  • Affidavit cum undertaking that he shall not violate the sanctioned plan

General

  • A completion certificate to be obtained within three months of the completion of the construction
  • Certificate of Bank’s Valuers also to be obtained at various stages of construction that the construction is as per the sanctioned plan