BANK OF MAHARASHTRA -HOME LOAN

Housing Loan Scheme

Purpose • To provide housing finance to Public in general for the following purposes

• For construction of new house / flat.
• For outright purchase of house / flat (New or Old).
• For repairs / renovation of the existing house / flat
• Home Conversion Loan.
• Land Purchase Loan.
• Bridge Loan.
• Stamp Duty Loan.
• Refinance Loan Scheme.
• Take over of housing loan from other bank/ institution.
• Additional loan on account of escalation of cost / for expansion etc.

Eligibility:

Salaried persons, professionals / Businessmen having sufficient disposable income to meet the repayment. The employment should be in State / Central Govt., Public or Private Sector Companies, Establishments of repute. The sanctioning authority should be satisfied about repaying capacity of employee.

• Farmers having minimum five acres of irrigated land holding.

• Non Resident Indians are also eligible for the loan.

Age Criteria:Minimum: 21 years. Maximum: 50 years in case of salaried persons.
• 55 years for applicants others i.e. Business , professionals etc.

Quantum of Loan:

For salaried class:

• Equal to 50 times of monthly gross salary or 60 times of net monthly salary whichever is higher - or

• 85% of the cost of house / flat to be purchased / constructed (including registration and other essential charges i.e. Electricity Deposits, Mortgage charges etc.) Loan eligibility will be minimum amount of (a) and (b) above.

For individuals in business / profession or self-employment.

• Equal to average annual income of last 3 years x 4 times to be worked out as eligibility for quantum of loan. For example, if the average income of a businessman / Professional is around Rs.5.00 lakhs (to be ascertained from sources such as Balance sheet, Income tax return etc.) then the loan quantum in such cases would be Rs.5.00 lakhs multiplied by 4 times which works out to Rs.20.00 lakhs - or
• 85% of the cost of the house / flat to be purchased / constructed.
• Loan eligibility will be minimum amount of (a) and (b) above.

In case of individual businessmen or professionals, the income may be ascertained from different sources such as (1) Balance sheet, (2) Income tax returns etc.
Before considering the sources, consistency of income be ensured. For the businessmen carrying proprietary concern and professionals/self employed persons, the term total income would mean “Net Profit plus Depreciation”. However, repayment obligation on account of term liabilities should be taken into consideration while deciding the quantum of loan and EMI.

• For Farmers.
For finalizing the quantum of loan, net annual income may be considered. (i.e., 4 times of average net income of last three years).The branches may cross check the Gross & Net Annual Income of the applicant with reference to the land holding, cropping pattern, sugar factory bills/cotton bills, Agricultural Produce Marketing Committee Bills etc.

The loan quantum depends mainly on the repaying capacity of the applicant. Branches may consider other factors such as past experience in repaying the loans availed.

•Income of Spouse and other relatives:
The income of son, daughter, sister, brother along with the spouse to be taken for deciding the quantum of loan and repayment capacity provided the property is in the name of all joint members or their guarantee is obtained.