Scheme for Housing Loans (for purchase of House / Flats / Plots)

Sr. No. Particulars Details
i Type of Facility Term Loan
ii Purpose – Construction or purchase of new/old dwelling units (not more than 15 years old and in good condition)
– Renovation of existing house/dwelling unit
– Repayment of loan taken from housing finance companies/banks
– Purchase of plot (house must be constructed within 2 years of purchase)

Subject to prudential exposure norms
iii Eligibility Individual(s)
iv Amount Up to ₹140.00 Lacs per dwelling unit
– Normally not to exceed 48x gross monthly income or 4x annual income
– Loans up to ₹50.00 Lacs for units valued ≤ ₹63.00 Lacs qualify for priority sector lending
– MCL calculation per IPSB LAP Scheme applies
v Margin 15%
vi Rate of Interest As per Bank’s rules
vii Repayment * Maximum 20 years, including moratorium, based on repayment capacity
* Moratorium ≤ 18 months from first disbursement or 1 month after house completion (whichever earlier)
* Interest during moratorium to be serviced as debited
* EMI (Equated Monthly Installments) option available
viii Security & Documentation a) All usual loan documents as per Bank’s rules
b) Mortgage of the house/flat constructed or purchased using loan
OR other adequate securities like LIC policies, NSCs, etc.
ix Surety/ies One or two sureties of good means as per bank’s discretion
Other Conditions 1. For old houses, certificate from Bank’s approved architect confirming structural integrity and life exceeding loan term.

2. Existing house owners may avail second housing loan for self-occupation.

3. Employees with provided accommodation can avail loan and let out the property.

4. Repayment capacity should be ~60% of income. Higher amounts may be allowed if family income is considered.

5. Additions/repairs and supplementary finance allowed with second mortgage/adequate security.

6. Estimates/valuation at 3 stages: sanction time, mid-construction, final.
    – Physical inspection required.

7. Construction loan requires approved plan and undertaking not to violate it. Completion certificate within 3 months of completion is mandatory. Architect must certify all stages.

8. For built-up property, affidavit confirming construction as per sanctioned plan and certification by Bank-appointed Architect before disbursement is required.

9. No loans for unauthorized colonies unless regularized and charges paid.

10. No loans for properties intended for residential use but applied for commercial purposes.
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