Immovable property mobilizing resources
Eligibility
Loan against mortgage of immovable property located in Metro / Urban / Semi-urban centers.
Target Group
Individual/s singly or jointly, Traders, Businessmen, Professionals or Self –employed persons etc. Having known and regular source of net income of Rs. 10,000/- per month or more.
Nature of facility
Term Loan and Overdraft
The Overdraft facility will be for one year and to be reviewed annually.
However DP is to be reduced by EMI on notional repayment period of 72 months, so that the loan is adjusted at the end of 72 months.
Purpose
To meet any sort of personal or business expenses, but not for speculative purpose.
Quantum of Loan
36 times of Net monthly Income of applicant/s (for salaried class) or 3 times of net annual income as per IT return (for other than salaried class) subject to max. of Rs.50.00 lakhs.
While arriving at the net monthly income / net annual income, income of spouse can be clubbed if joins as co-borrower.
Minimum loan = Rs.1 lakh
Maximum loan = Rs.50 lakh
Security
EM of non-encumbered residential house / flat, commercial or industrial property, situated in metro/urban/semi-urban centers only, in the name and possession of the borrower, either self-occupied or vacant. The property should be of value equal to 200% of the loan amount.
Partially leased out/rented property (e.g. two storeys of the building having four storeys being already leased) also may be accepted as a security. However valuation of only vacant /self-occupied portion of the property to be considered for fixing quantum of the facility and equitable mortgage of the entire property to be created.
Subsequent to availing of the loan, if the property is to be let out, Bank’s permission will be required. The Sanctioning Authorities would accord their permission only where the proposed lease is in favour of an institution of repute and lease rentals/monthly rent will be assigned to the bank.
Alternatively, the loan would have to be repaid prior to the letting out of the property.
Insurance
The property will be insured against fire, riots wherever required, against other appropriate hazards, such as, Earthquake, Flood, Lightening etc. by the borrower with usual bank clause for full value of the property through Bank insurance.
Guarantee
Personal Guarantee of joint/co-owner of the property (if any).
Rate of Interest As per bank rules.
Processing Charges :1% of loan amount.
Repayment
In Maximum 72 equated monthly installments commencing from the next month after disbursement.
Repayment to be fixed on realistic basis, which should not normally exceed 50% of gross monthly income.
Post dated cheques signed by the borrower for repaying monthly installments along with letter of deposit to be obtained.
Sanctioning Authority
BM in scale II = Rs.5 lakhs
BM in scale III = Rs.15 lakhs
CM/RM = Rs.30 lakhs
A.G.M. = Rs.40 lakhs
Dy. G.M.& Above = Rs.50 lakhs
General
Net income means total income of the borrower as per Income Tax return or other documentary evidence, less deductions for various loan installments, Income Tax and other statutory dues etc.
Valuation of the immovable property will be done by an approved valuer, who is registered with Indian Institute of Valuers, at borrower’s cost. Valuation has to be checked out with the market rate prevailing in the area where the property is situated. For this purpose reference should be made to the record with Government Departments / Municipal Authorities. Valuation report should indicate present value, sale value as well as distress value.
Joint owners or one of the joint holders of the property may also be allowed loan under the scheme. In a situation when loan is being allowed to one of the joint owners, in addition to equitable mortgage of the property the guarantee of other joint owner/s be obtained.
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