1. Eligibility
v Residents/NRIs holding Indian Passports conforming to normal borrower standards with independent & regular source of income
v Applicant/s should be in the age group of 18-50 years
v Where property is held in joint names, all the joint holders should join as co-applicants to the loan.
v Any one of the close relative may join as co-applicant in case applicant's income is not sufficient to service the loan.
v Spouse, father, mother, brother, son, daughter only are close relatives.
v Where property is owned by applicant's parents/spouse who do not have independent/regular income, they should join as co-applicant only irrespective of their age.
v If the applicant/co-applicant is in service, he should have 2 years of confirmed service.
2. Purpose
v For construction of house/flat, purchase of ready built house /flat.
v For repairs/renovation/extension/improvement of existing house/flat.
v For take-over of housing loans from other banks/institutions.
3. Loan Amount
Area Loan Amount Loan for site
Metro & Port Town Centers Rs.100 lacs Rs.30 lacs
Urban Centres Rs.50 lacs Rs.15 lacs
Semi Urban & Rural Centres Rs.25 lacs Rs.10 lacs
For Repair /Renovation/Extension/Improvement Rs.5 lacs
4. Margin & Repayment Period
Age of the house/flat Margin Repayment
Up to 10 years 20% 25 years
Above 10 years & upto 20 years 20% 20 years
Above 20 years & upto 30 years 25% 15 years
Repair/Renovation/Extension 20% 5 years
Repayment period should not exceed retirement date for salaried persons and 65 years of age for other than salaried persons.
5.Security
Mortgage of house/flat purchased out of Bank Finance
6. Guarantee
v Third party guarantee at the discretion of the sanctioning authority.
v Wherever third party guarantee is not obtained, co-obligation of spouse is
mandatory.
v However, ZO may permit waiver of co-obligation of spouse.
7. Rate of Interest with effect from 3rd February, 2009
Corp Home (Floating Rate) Up to Rs. 30 lakh*
TENOR Loans Disbursed Fresh Loans Sanctioned/
upto 02.02.2009 Disbursed on or after 4/3/2009
Up to 5 years 9.75% 9.25%
Above 5 years & upto
15 years 10.00% 9.50%
Above 15 years & upto
20 years 10.50% 10.00%
Above 20 years 10.50% 10.50%
*The above rates are applicable to all new Corp Home Loans with the limit and upto Rs. 30 Lakh.
Corp Home (Floating Rate) Above Rs.30 lakh:
Tenor Loans disbursed upto Fresh Loans Sanctioned/
02.02.2009 Disbursed on or after 3/2/2009
Upto 5 years 10.50% 10.00%
Above 5 years & upto
15 years 10.75% 10.25%
Above 15 years & upto
20 years 11.00% 10.75%
Above 20 years 11.00% 11.00%
Corp Home (Fixed Rate):
Loan Amount Loans disbursed upto Fresh Loans Sanctioned/
02.02.2009 Disbursed on or after 3/2/2009
Loan upto Rs. 30 lakh 12.00% 11.50%
Loan above Rs.30 lakh 12.50% 12.00%
Corp Home (Plus) Loans: Loans Disbursed upto Fresh Loans sanctioned/
Limit (Maximum Tenor 2/2/2009 Disbursed on or after 3.2.2009
20 Years)
Upto & Inclusive of
Rs.5 lakh 8.50% 8.50%
Above Rs.5 Lakh and
upto & inclusive
of Rs.20 Lakh 9.25% 9.25%
Notes:
v Additional rate of interest of 0.50% for loan for acquiring second/subsequent house for loans availed on or after 01.04.2007. This is not applicable for repair/renovation/construction upto first floor.
v Maximum tenor under Fixed rate loans restricted to 20 years for salaried class and 15 years for other category of borrowers.
v Housing loans under Fixed Rate of Interest is offered upto 20 years only. The rate of interest will be reset at the discretion of the Bank once in 5 years.
8. EMI & Eligible Income
In case of salaried class, where gross income is upto Rs.2 lakhs, EMI, including the installments/notional interest in respect of existing and proposed loan together should not exceed 40% of net income
In case of salaried class, where gross income is above Rs.2 lakhs, EMI, including installments/notional interest in respect of existing and proposed loan together should not exceed 50% of net income.
In case of other than salaried class, EMI, including installments/notional interest in respect of existing and proposed loan together should not exceed 50% of net annual income
v Regular & verifiable income only shall be considered
v Salary, Pension, Business income, Agricultural income etc., are eligible.
v In case pf seasonal income, Quarterly/Half yearly/Yearly installments may be fixed.
v Depreciation/cash accruals may also be added to net income.
v Future rental/projected income shall not be considered.
9. Processing Charges
Upto Rs.5 lakhs 0.50% of loan subject to min. Rs.1,000/- & max. Rs.2,500/-
Above Rs.5 lakhs & upto Rs.15 lakhs 0.50% of loan subject to min. Rs.2,500/- & max. Rs.7,500/-
Above Rs.15 lakhs & upto Rs.20 lakhs 0.50% of loan subject to min. Rs.7,500/- & max. Rs.10,000/-
Above Rs.20 lakhs 0.50% of loan subject to min. Rs.10,000/- & max. Rs.50,000/-
10. Pre Payment Penalty
Floating Rate Option 0.50% of amount prepaid in excess of 10 EMIs/2 Quarterly/1 Half Yearly/1 Yearly installments during the year OR pre closure of loan account.
v (No Penalty for loans sanctioned prior to 01.02.2005 )
Fixed Rate Option v No Penalty for prepayment after completion of 5 years
v No penalty for prepayment for amount not exceeding 10 EMIs/2 Quarterly/1 Half yearly/1 Yearly installments.
v Penalty at 1% on the entire amount prepaid, otherwise.
11. Conversion Charges
v From Floating to Fixed : 1% of the outstanding balance, inclusive of upto date interest as on the date of conversion.
v From Fixed to Floating : Not allowed
v Re-Scheduling of loan to lower tenor to get the benefit of lower rate of interest is not allowed under floating rate of interest option.
12. Loan for Site
v Where loan is availed for purchase of site & construction of house thereon, cost of site/land should not exceed 60% of project cost.
v In such cases, construction should commence within 12 months.
v Construction should be completed within 24 months.
v In case of default in construction of house, rate of interest to be charged to such loan is COBAR+0.50%+3%. (COBAR+Term Premium+ Spread)
13. Take Over of Loan
v Take over of housing loan availed with other banks/institutions/employer is permitted under the scheme.
v In principle clearance shall have to be obtained from Zonal Office.
v Repayment period should not exceed leftover repayment period of transferor bank & loan amount should not exceed 75% of market value.
v Age of the property should not exceed 10 years.
14. Second Loan for Enhancement
v Maximum of two loans may be permitted for purchase/construction/repair.
v Enhancement of loan may be permitted during pre EMI or post EMI period
v Loan for enhancement shall be treated as separate loan. However loan amount should be aggregated for computation of rate of interest.
15. For Repairs/Renovation/Extension
v Loan for repair/renovation/extension may be sanctioned.
v Second loan as for repair/renovation shall not be given within 12 months of availing first loan, if the age of the property is within 5 years.
v If the age of the property is more than 5 years, second loan may be permitted for repairs/renovation, within 12 months of availing first loan.
v Loan for repair/renovation shall be treated as an independent loan and shall not be aggregated for computation of interest rate.
v For loan upto Rs.1 lakh, EMG of house/flat may not be insisted upon. In such cases, the loan shall be fully secured by financial assets such as shares/debentures/units/LIC policies/deposits/NSCs, subject to maintaining prescribed margin against such securities.
16. Loan against Second Charge Pari Pasu Charge
v Loan against second charge/pari pasu charge may be considered on selective basis.
v In such cases, value of the property shall be not less than 150% of the total loans availed against such property.
v Such loans should be sanctioned by Zonal Office only.
17. Corp Flexi Loans
The Scheme is to facilitate the younger borrowers who are expecting income growth in the years to come, and would like to avail higher quantum of loan than the normal eligibility, may opt for housing loan under Corp Flexi option. Under the Scheme, installments will be flexible/progressive/step up, in tune with increase in income. (The Scheme is only for salaried class )
Option 1 v Loan amount will be 130% of the normal entitlement.
v First 5 years, EMI is based on present repayment capacity for normal loan entitlement (100%)
v Next 5 years, EMI will be normal for full loan (130%)
v Balance period, EMI will be for balance repayment period on the balance outstanding at the end of 10 year.
Option 2 v Loan amount will be based on present repayment capacity.
v First 5 years, EMI will be 70% of normal EMI
v Next 5 years, normal EMI.
v Balance period, EMI will be for balance repayment period on the balance outstanding at the end of 10 years.
Other condition v No relaxation is permitted from prescribed margin of 20%
v Certificate from employer regarding salary structure shall be obtained.
18. Disbursement
v Loan amount shall be directly remitted to the seller. No reimbursement of purchase price is permitted under the scheme.
v In case of flat/property under construction, loan shall be released in stages depending upon the progress of construction.
19. Insurance
v Property shall be covered under insurance under Reinstate value method.
v The cost of land, expenses incurred towards Stamp duty, registration - although forming part of the loan amount/value of the property - are to be excluded while arriving at the value of the property for insurance purpose.
20. Corp Griha Raksha
v Insurance of the borrower under Corp Griha Raksha may be considered at the option of the borrower. Premium amount may be added to loan amount.
21. Equated Monthly Installments for every Rs.1 lakh of loan for various repayment periods
Rate of 5 10 15 20 25
Interest years years years years years
8.5% 2052
9.0% 2076 1267 1014 900 839
9.25% 2088 1280 1029 916 857
9.5% 2100 1294 1044 932 874
9.75% 2112 1308 1060 949 891
10.0% 2125 1322 1075 965 909
10.25% 2137 1335 1090 982 926
10.5% 2150 1349 1105 998 944
10.75% 2162 1363 1121 1015 962
11.00 2174 1378 1137 1032 980
11.25 2187 1392 1152 1049 998
11.50 2199 1406 1168 1066 1017
11.75 2212 1420 1184 1084 1035
12.00 2225 1435 1200 1101 1053
12.25 2237 1449 1216 1119 1072
This information gathered from the banks web site.
