Easy Loan Scheme (Scheme of Finance against property)

i.

Eligibility

–

Individuals & Business entities who is a bona fide member of the bank.

ii.

Purpose

–

Any legitimate requirement of finance, except for speculative purposes.

iii.

Limit

–

(i)

(ii)

Minimum ` 5.00 Lacs

Maximum  Subject to the exposure limit of the Bank

Maximum of 48 months’ salary / income in case of individual borrowers

Level of Debt Service Coverage Ratio (DSCR) shall not be less than 1.50 in case of business entities.

iv.

Nature of Facility

–

Term Loan or overdraft

v.

Rate of interest

–

As per bank rules subject to levy of penal interest.

vi.

Margin

–

35% of marketable value of mortgaged property.

vii.

Period  

a)

b)

Loan – Maximum 120 months subject to repaying capacity

Overdraft – 12 months subject to annual review.

ix.

Insurance

–

The property will be comprehensively insured by the borrower with usual bank clause for the market value of the property (excluding value of land).

x.

Sureties

–

At least two satisfactory sureties  of good means.

xi.

Security

–

Mortgage of non-encumbered freehold property owned by the borrower or third party and  in case the same  is owned by third party, his/her personal guarantee to be stipulated, subject the condition that the relevant is a self occupied property.

xii.

Other Conditions

a)

In case of  Salaried Persons total deduction from salary and instalment of proposed loan shall not be more than  60 % of gross salary.

b)

.

(i)In case of partly rented properties, finance may be allowed against the realizable value of self-occupied portion only.

(ii)In case of ;

(a)              fully rented property/properties finance may be allowed subject to submission of rent agreement.

(b)              Registered Rent Agreement : Rent to be  credited in the account of mortgager with us  or Bank statement of other bank account be submitted on half yearly basis  in which rent is being credited.

(c)               Unregistered Rent Agreement  : Bank  shall insist upon  credit of rent in the account of mortgager with us  or Bank statement of other bank account be submitted  in which rent is being credited.

(d)              in the account of  mortagor Account with us or bank statement   of other account  in which rent is credited.

c)

If subsequent to availment of credit facility, the property is proposed to be let out, Bank’s permission would be required. The sanctioning authority would accord permission on merit of individual case and on such terms and conditions as deem fit.

d)

The borrowers, mortgagor and guarantors should be members of the Bank before processing the Loan application.

e)

Other usual terms and conditions as per Bank’s rules as may be decided from time to time.