Housing Loan
Purpose
- For construction / purchase of house / flat/ plot.
- For carrying out repairs / renovation additions / alterations / cost of furnishing the house/ flat.
Eligibility
Individuals as well as Joint owners
Extent of Loan
Need-based, depending upon the project cost and repaying Capacity of the borrower(s). The maximum amount of loan shall not exceed Rs. 70 lacs for repairs/renovation/additions/ alterations. Cost of furnishing may also be financed, subject to maximum of Rs.2.00 lacs.
Margin
- For construction of house or purchase of house/flat or for Carrying out repairs/renovation/additions/ alterations to existing house/ flat as well as for furnishing 25%
- For purchase of land/plot for house building: 50%.
Security
Equitable / regular mortgage of properties to be purchased / constructed.
Insurance
The property will be kept insured for construction, fire, riots and earthquake, flood, etc. by the borrower, with usual bank clause.
Period of loan
The loan period shall not exceed 20 years including moratorium period. The moratorium period may be granted till the completion of the constructions or 18 months from the disbursement of first installment of loan, whichever is earlier.
Terms and Conditions
- The borrower must have a stable and continuous source of income adequate to Service the debt.
- Age of Individual borrower must not exceed 60 years.
- In case of construction of house approved plan is required.
- An affidavit cum undertaking from the person applying for the loan that he shall not violate the sanctioned plan and construction shall be strictly as per sanctioned plan
Exposure Ceiling
- For purchase/construction: Depending upon repayment, capacity of borrower subject to capacity maximum ceiling of Rs.70 lacs..
- For major repair/ renovation of Maximum up to Rs.10 lac per unit.
Overall Limits
Total Housing Loans exposure subject to maximum of 10% of total assets and can be exceeded by an additional limit of 5% of total assets for the purpose of grant of housing loan to individual for purchase Or construction upto 10.00 Lacs.
