IPSB LAP

Sr. No. Particulars Details
i Eligibility (a) Individuals & Proprietor of Business entities who are bonafide members of the bank.
(HUF, Partnership Firms & Limited Companies are not eligible)

(b) Business units should have been established in the line of business for a minimum period of 3 years.

(c) Trading units established by existing customers with satisfactory dealings, even if less than 3 years old.
ii Purpose Any legitimate requirement of finance, except for speculative purposes
iii Limit Subject to Bank exposure
iv Nature of Facility Term Loan
v Rate of Interest As per Bank’s rules
vi Margin 35% of marketable value of mortgaged property
vii Period Loan term: up to 180 months (maximum)
viii MCL Criteria For Salaried Persons:
Total deductions including existing & proposed loan instalments should not exceed 60% of gross salary.

For Business Persons:
Average Balance Method:
75% of total outstanding credit average balance (5th, 15th, 25th of each month for 6 months) considered for repayment capacity.

Gross Turnover Method:
– 0.25% of total annual sales (Trading Firm)
– 0.50% of total annual sales (Manufacturing Firm)

Note: Instalments in Credit Information Report must be considered.

Loan Takeover Cases:
– 18 regular EMIs: finance up to 120% of EMI
– 36 regular EMIs: finance up to 130% of EMI
– 48 regular EMIs: finance up to 140% of EMI
ix Insurance Property to be comprehensively insured with bank clause, cost borne by borrower
x Sureties At least two satisfactory sureties of good means
xi Security Mortgage of non-encumbered freehold property owned by borrower or third party.
Third party guarantee mandatory if applicable.
xii Other Conditions – Property should not be vacant land and must be in municipal area.
– Salaried: Attach recent salary slips, 1 year bank statements, last 3 years Form 16/ITRs.
– Business: Last 3 years ITRs with audited financials (if applicable).
– Partly rented properties: finance allowed only on self-occupied portion.
– If property is let out after loan sanction, prior bank permission is needed.
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