Easy Loan Scheme (Scheme of Finance against property)
Scheme Finance against property
Eligibility Individuals & Business entities who are bona fide members of the bank.
Purpose Any legitimate requirement of finance, except for speculative purposes.
Limit
  • Minimum: ₹ 5.00 Lacs
  • Maximum: Subject to the exposure limit of the Bank
  • Maximum of 48 months’ salary/income for individual borrowers
  • Debt Service Coverage Ratio (DSCR) ≥ 1.50 for business entities
Nature of Facility Term Loan or Overdraft
Rate of Interest As per bank rules, subject to levy of penal charges.
Margin 35% of marketable value of mortgaged property.
Period
  • Loan: Maximum 120 months subject to repaying capacity
  • Overdraft: 12 months subject to annual review
Insurance Property must be comprehensively insured by the borrower with usual bank clause for the market value of the property (excluding land value).
Sureties At least two satisfactory sureties of good means.
Security Mortgage of non-encumbered freehold property owned by borrower or third party (with third-party personal guarantee and property should be self-occupied).
Other Conditions
  • For salaried persons: Total deduction from salary + loan installment ≤ 60% of gross salary.
  • For properties:
    • Partly rented properties: Finance allowed against self-occupied portion’s realizable value only.
    • Fully rented properties:
      • With Registered Rent Agreement: Rent to be credited in mortgagor’s account or bank statement submitted half-yearly.
      • With Unregistered Rent Agreement: Rent to be credited in mortgagor’s account or supporting bank statement required.
  • Subsequent letting out of property requires Bank’s permission.
  • Borrowers, mortgagors, and guarantors must be members of the Bank before loan processing.
  • Other usual terms and conditions as per Bank’s rules.
Special Note On CEO’s recommendation, BOD may relax the margin based on merit of the case.
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