IPSB LAP

Eligibility                                      i. Eligibility                                                                         –        (a)Individuals & Proprietor of Business entities who is a bonafide  member of the bank. (HUF, Partnership Firms & Limited Companies are not eligible)

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

                                                                                                                                                          (c)Trading Units established by our existing customers with satisfactory dealings, even if these are established for less than 3 years.

  1. Purpose –                        Any legitimate requirement of finance, except for speculative purposes

 

iii.   Limit                                       –                      Subject to Bank exposure

 

  1. Nature of facility                    –                        Term Loan

 

  1. Rate of interest                   –                         As per Banks’ rules

 

  1. Margin                                  –                         35 %of marketable value of  

                                                                              mortgaged property

 

  1. Period             –                           Loan 180 months(maximum)

viii.      MCL Criteria

                        –                                                                                                           

  • In case of Salaried Persons :-

Total deduction from salary including existing Loan instalments (if any) and instalment of proposed loan shall not be more than  60 % of gross salary.

 

 

 

 

 

 

  • In case of person engaged in Business :-

Average Balance Method

 

  • 75% of the total outstanding credit average balance of 5th, 15th, 25th day of the month for 6 months of the individual/firm maintained at different banks is considered for monthly repaying capacity (subject to deduction of existing monthly Loan instalments payable if any)

 

Gross Turnover method           

 

For monthly repaying capacity, the  turnover will be considered as under :- 

 

  • e. 0.25% of the total annual sale of the Trading Firm and
  • e. 0.50% of the total annual sale of the Manufacturing Firm.

 

Note:- In all the above mentioned criteria for calculation of MCL , the instalments reflected in Credit Information Report must be considered.

 

  • In case of loan taken over by us from other Bank/Financial institution.

 

   Loan amount and repayment capacity is considered on the following basis :-                               

  • In case of 18 regular instalments as per loan statement of other bank, we may finance the loan amount for up to 120% of the present EMI on the basis of reverse calculation.
  • In case of 36 regular instalments as per loan statement of other bank, we may finance the loan amount for upto 130% of the present EMI on the basis of reverse calculation.
  • In case of 48 regular instalments as per loan statement of other bank, we may finance the loan amount for up to 140% of the present EMI on the basis of reverse calculation.

 

  1. Insurance –           The property will be comprehensively insured with usual bank

                                                           clause, at the cost of borrower by the bank

 

  1. Sureties –          At least two satisfactory sureties of  good means. 

 

  1. Security – Mortgage of non-encumbered freehold property owned

by the borrower or third party. In case of third party  

his/her personal guarantee  is mandatory.                                                      

 

 

 

 

 

 

 

 

xii. Other Conditions                          –                                  

 

 

  • Property offered for mortgage should not be a vacant land and must be situated in municipal area.
  • For Salaried Person, recent salary slips, bank statements for last 1 year, last 3 years’ Form 16 or ITRs alongwith computation should be attached with the loan application.
  • For Person engaged in business, last three years income tax returns with audited (if applicable) financials must be attached with the loan application.
  • In case of partly rented properties, finance will be allowed against the market value of self-occupied portion only.

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.

Translate »