Easy Loan Scheme (Scheme of Finance against property)

Sr. No. Particulars Details
i Eligibility Individuals & Business entities who are bona fide members of the bank.
ii Purpose Any legitimate requirement of finance, except for speculative purposes.
iii Limit (i) Minimum: ₹5.00 Lacs
(ii) Maximum: ₹50.00 Lacs, subject to repaying capacity of the borrower.
– Debt Service Coverage Ratio (DSCR) must be ≥ 1.50 for Term Loan.

Note: The maximum limit under Easy Loan Scheme is proposed to be revised w.e.f. 01.05.2025 for fresh credit facility sanction. Existing overdraft limits will be allowed only for renewal under this scheme.
iv Nature of Facility Term Loan or Overdraft
v Rate of Interest As per bank rules, subject to penal charges.
vi Margin 35% of marketable value of mortgaged property.
vii Period a) Loan – Maximum 120 months (subject to repaying capacity)
b) Overdraft – 12 months (subject to annual review)
viii Insurance The property must be comprehensively insured by the borrower with usual bank clause, for market value (excluding land).
ix Sureties At least two satisfactory sureties of good means.
x Security Mortgage of non-encumbered freehold property owned by the borrower or third party.
If owned by a third party, their personal guarantee is mandatory.
xi Other Conditions a) For salaried persons: Total deduction + proposed EMI ≤ 60% of gross salary.

b) Rental property conditions:
– Partly rented properties: Finance allowed against self-occupied portion only.
– Fully rented: Finance allowed with rent agreement.
    – Registered Rent Agreement: Rent must be credited to mortgagor’s account with the bank, or submit bank statement (half-yearly).
    – Unregistered Rent Agreement: Bank requires rent credit to mortgagor’s account or submission of other bank account statements.

c) If the property is to be let out after credit facility is availed, Bank’s prior permission is required. Sanctioning authority will decide based on merits.

d) Borrower, mortgagor, and guarantors must be Bank members before loan processing.

e) Other usual terms and conditions as per Bank’s rules.

Credit Facility above ₹50.00 Lacs: May be considered with prior approval of the Board of Directors (BOD).

Relaxation Clause: On CEO’s recommendation, BOD may relax margin based on merits.
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