Scheme for Housing Loans (for purchase of House / Flats / Plots)
i. Type of Facility Term Loan
ii. Purpose
  • Construction or purchase of new and old dwelling units (not more than 15 years old) in good condition
  • Renovation of existing house/dwelling unit
  • Repayment of loan availed from housing finance companies/banks
  • Purchase of plot to construct a house (construction must begin within 2 years of purchase)

Subject to prudential exposure norms.

iii. Eligibility Individual(s)
iv. Amount Up to ₹140.00 Lacs per beneficiary.
(Loan amount from all sources should not normally exceed 48 times of gross monthly income or 4 times of annual income).
Loans above ₹35.00 Lacs not treated as Priority Sector Lending.
MCL criteria from Scheme IPSB LAP applicable.
v. Margin 15%
vi. Rate of Interest As per Bank’s Rules
vii. Repayment
  • Maximum 20 years including moratorium
  • Moratorium up to 18 months or 1 month after completion, whichever is earlier
  • Interest during moratorium to be serviced as and when debited
  • Equated monthly instalments may be offered
viii. Security Documentation
  • All usual loan documents as per Bank’s Rules
  • Mortgage of freehold house/flat purchased/constructed out of the loan
  • OR security of adequate value like LIC policies, NSCs, etc.
ix. Surety/ies One or two sureties of good means as per Bank’s discretion
x. Other Conditions
  1. For old houses, certificate of good condition and life span from Bank’s approved engineer is mandatory
  2. Second house/flat purchase is allowed for self-occupation
  3. Even if staff accommodation is available, loan can be given if house is to be rented
  4. Repayment capacity should be realistic (~60% of income). Family income may also be considered
  5. Supplementary finance may be allowed with second mortgage/adequate security
  6. Valuation required at 3 stages: sanction, during construction, final valuation
  7. Construction loans need sanctioned plan; affidavit and completion certificate required
  8. Purchase of built-up house requires affidavit of legal compliance and architect’s certificate
  9. No loans for unauthorized colonies unless regularized
  10. No loans if property is meant for residence but will be used for commercial purpose
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