1. For what purposes does the Bank give Housing Loans?
Housing loan are given for construction of new house/flat, purchase of ready-built house/flat, repairs/ renovation/ extension of existing house/ flat as well as foreclosure of existing housing loan liability with other bank/ housing finance company.

2. What is the maximum loan amount considered under the Scheme?
Maximum loan amount that could be considered, subject to conformity with income/ repayment capacity norms, is Rs.50 lakhs in Metro/ Urban/Port-town centres and Rs.25 lakh in semi-urban/ rural centres. Maximum loan permissible for repairs / renovation/ extension is Rs.5 lakhs irrespective of location.

3. Who are eligible for applying for housing loans?
Resident Indians as well as NRIs, in the age group of 18 to 50 years with independent and regular source of income and desiring to go in for own dwelling unit is eligible to apply for housing loans under the Scheme. In case the age of the applicant exceeds 50 years, certain restrictions/ conditions like shortening of maximum repayment period, co-obligation of spouse/ children, etc. will be applicable.

4. What is the margin/ down payment expected to be brought in?
In the case of construction/ purchase of house [not more than 10 years old], the margin is 15% of total cost [including registration charges/ stamp duty in case of purchase]; in case of house/ flat that are more than 10 years old, higher margins will be applicable; For Repairs/ Renovation/ Extension, margin is 20% of estimated cost.

5. What are the securities required for housing loans?
No collateral securities other than mortgage of the house property are insisted upon in the normal course. In case of delay in providing the security of the house, as in the case of acquisition of a flat under construction, alternate collateral securities will have to be provided until such time the mortgage is created is Bank's favour.

6. Whether third party guarantee is required for housing loans?
No third party guarantee is required / insisted upon for the housing loans except for co-obligation of the spouse.

7. What is the interest chargeable on these loans?
Our Interest rates are floating rates and interest is calculated on daily reducing balance method. Options of Fixed Interest Rates are also available for loan period up to 10 years. For the latest Rate of Interest and EMIs please.

8. What is the lowest EMI as per the Bank’s interest rates?
The lowest EMI as per the current interest rates is Rs.802/- only for a Loan of Rs. 1 lakh for 25 years repayment period.

9. Please elaborate on the repayment period permissible for housing loans for different purposes/ borrowers?
a) The maximum permissible repayment period is 25 years or 300 months.

b) For construction of new house/flat or purchase of house/flat that is not more than 10 years old, maximum loan period permissible is 25 years for applicants aged 40 years or below; In the case of salaried class, the repayment period should not extend beyond superannuation or 60 years, which ever is lower. In the case of business men/professional/others, the repayment period should not extend beyond 65 years of age.

c) The above are the maximum permissible loan periods under respective category of borrowers inclusive of initial repayment holiday period of up to 18 months or up to completion of construction, whichever is earlier in case of construction of new house.

d) In the case of purchase of house and Flat aged more than 10 years and up to 20 years, the loan period is restricted to 20 years. For Purchase of House/flat aged more than 20 years & up to 30 years, the maximum repayment period is restricted to 15 years.

e) In the case of loans for repair/ renovation/ extension, maximum repayment period is 60 months excluding initial repayment holiday of up to 3 months.

f) Prepayment Charges at 0.50% on the entire amount prepaid is payable for any premature closure of Corp Home Loan Accounts under Floating Rate Loans opened on or after 01-02-2005. However under Fixed rates, before completion of five years prepayment charges at 1% on the amount prepaid is payable.

10.How the eligible loan amount is arrived at/ calculated?

a) The eligible loan amount is arrived at after deducting the stipulated margin from the total cost of the project, subject to repayment capacity.

b) The repayment capacity is considered at 40% of the net income [including income from other sources] in case of salaried persons with net annual income of up to Rs. 2 lakhs and at 50% of net income in cases with net annual income exceeding Rs.2lakhs and in respect of persons with income other than salary.

c) The eligible loan amount based on repayment capacity for a 25 years loan for outright purchase of a house/flat with 300 monthly installments for a person with Rs.10000/- net monthly salary/income would be Rs. 3.66 lakhs as illustrated below: Net Monthly salary [10000]x 0.40/1008=Rs.3.97 lakhs.

11.What are the normal documents to be submitted for getting a loan?

a) The basic documents to be submitted are for identification, income/ net worth details, title related and project/ proposal details.

b) Identification is required if you are not a customer of our Bank. Ration Card, Identity Card, Driving Licence Copy, certificate from the employer would serve the purpose. You have to open an account with proper introduction.

c) As regards proof of income, IT/ WT returns/ assessment orders, salary certificate copy, Sales Tax/ P&L Account copy in the case of business person, details of income/ expenditure in case of agriculturists, would serve the purpose. In addition, Assets & Liabilities statement in Bank's prescribed format will have to be submitted.

d) The title details refer to title on house property, may be of Yours, in case you already own the site/ house property and propose construction/ renovation OR of the seller, in case you propose to purchase the same.

e) The title deeds and supporting documents backed by a legal opinion by one of our empanelled advocates certifying clear marketable title should be made available to the branch.

f) Regarding housing loan proposal/ project, the details required are purpose, total cost supported by estimate, approved plan & construction licence from local authorities for constructions, agreement for sale and valuation certificate for purchase, estimation & licence for local authority for repair/ renovation, certificate from transferor bank certifying the balance outstanding & regularity of account in case of take-over.

12. Whether loan would be considered for purchase of site also? Please furnish details.

a) Yes; in exceptional cases, grant of loan is considered for even for purchasing of site.
b) However, in such cases, the borrower has to undertake to commence the construction of house, after completing all formalities, within a maximum period of 12 months with or without availing finance from our Bank. This has to be indicated at the time of availing finance for purchase of site itself.
c) The maximum amount for site purchase is Rs.10 lakhs in metro/ port-town/ urban centres and Rs.5 lakhs in semi-urban / rural centres.
d) The site value should not be more than 50% of the total project cost.
e) The maximum repayment holiday permitted, including the construction period, is 24 months.
f) If the borrower fails to keep up the undertaking to commence construction within 12 months or sells the site, the loan will be treated as misused and attracts interest at commercial rates ab-initio and loan will have to be repaid at once.

13. What will be the time required for sanction of a Housing Loan?
The proposals that are complete in all respects would generally be disposed off within a maximum period of 2 working days in case the same falls within Branch Managers Powers and within a week's time if the same needs to be sanctioned by Zonal Office.

14. Whether insurance of the property is mandatory?
Yes; the house has to be insured at borrower's cost. In the interest of the borrower, it is always advisable to insure the house against all normal risks.