HOUSING LOAN

Eligibility/ : Individuals or group of individuals or joint owners.

Purpose : For Construction of house, purchase of house/flat and under-construction semi built house/flat
from pvt builders if approved by sponsor bank.

Extent : For purchase of plot maxi Rs.50 lac

: Construction of house- need based
• : semi built house/flat from pvt builders- scale I -10 lac; Scale II-20 lac; Scale III- maxi Rs.30lac; Scale
IV/RM- maxi Rs.40lac.
• Repair and renovation- 25 lac.
• :cost of furnishing- max 10% of loan up to maxi Rs. 5 lac.
• : Pari pasu charge- RM & above empowers to consider loan up to Rs.20 lac to govt employees on
merit of each case.
Margin: land/plot-40%; construction/repair/addition-upto Rs.25lac -20% and above Rs.25lac-25%.
Repayment : Maxi 30 years including moratorium period of 18 months.
• Maxi 15 years including moratorium period of 6 months in case of loan for
repair/renovation/addition/alteration. Built House: 3 months or 1 month from
possession which is earlier
• : Installment can be fixed up to maximum age of 70 years.
• : Repayment should not exceed
Net monthly Salary/Income upto Rs.30000- 40%
• Above Rs.30000 to 60000/- 50%
• Above Rs.60000 to Rs.100000- 60%
• and above Rs .100000- 70%.
• : Income of spouse and earning children can be taken in to account provided they are made co
borrowers.
Upfront fee : For housing loan up to Rs. 300 lac- 0.5% of the loan amount with a cap of Rs 20000/
exclusive of service tax plus education cess.
Documentation charges: Rs.1350+ Service tax and education cess.
Security : Equitable/Registered mortgage of immovable property and suitable third party guarantee acceptable
to the bank.
Priority sector inclusion :Repair and Renovation-1lac for rural/semiurban;2lac for urban.
: Others- Loans up to Rs. 25 lakh to individuals for purchase/construction.
Disbursement : For outright purchase, loan will be disbursed in lump sum to vendors.
: For house/flat under construction, loan amt will be disbursed in stages.
• : Repair/renovation/addition/alteration, disbursed 50% of the amt sanction
• subsequent amt. to be released, after verification of earlier disbursement.
Other provisions :Cost of car parking up to maximum extent of 5% of the cost of house/flat can be
included in the cost of project.
:Prepayment charges of 2% be recovered on account being taken over by another bank.
:In case the construction of house is not completed within 3 years or in case plot is sold, penal
interest@2% over and above the applicable rate is to be charged.
: On completion, end use certificate be obtained from approved architect
 
  (Follow L&A Circular NO: 20/2015 dt 10.03.2015 for detail guidelines)
 
 CHECKLIST/DOCUMENTATION FOR HOUSING LOAN
 Loan application form duly completed with Photograph.
 Identity proof
 Address/Residence proof
 Age proof
 Educational qualification proof
 6 Income proof.
 1)-For Salary class: Latest salary slip FORM16/ITR for the last 3 years.
 -Where 3 years ITR/Form 16 is not available, last 12 months salary is verified either from salary slips/
form16 or statement of account
 2)-For other than Salary class:- ITRs and audited balance sheets for the last 3 years of
business/activity shall be taken to ascertain continuity of income( BM to verify all documents)
 7 Income proof of spouse/earning children/joint borrowers (if applicable)
 8. Property documents as under:
- Proof of Title deeds (all previous)( ii) Approved Plan of the House/Flat to be purchased;
- Attested copy of completion certificate, if obtained? ( iv) Agreement to sell ( in case of
purchase).
 v) In case of leasehold property, letter of authority from appropriate authority permitting transfer on
mortgage of the property.
 9. Valuation certificate of property, if required.
 10. Estimate for proposed construction/repair/addition/alteration etc.
 11. Proof of margin ( value of land/plot may be considered as margin)
Pre-sanction Appraisal
 Check loaning powers before pre-sanction appraisal.
 Check the authenticity of application submitted by the applicant (Verify from documents)
 Spot verification of borrower’s/guarantor’s place of business/residence to ascertain
 the genuineness of borrower’s/guarantor’s and to record in visit register.
- Check the income proof documents ie salary certificate/ITR’s .
- Check eligibility criteria for maxi permissible Loan amt keeping in mind repaying capacity of the
borrower.
- Extract the CIR,s from CIBIL of the borrower’s/guarantor’s to confirm previous indebtness.
- Genuineness/non encumbrance of title deeds of IP,s mortgaged is ensured and search
certificate
 Covers entire period from last transfer and not merely 13 years.
- IP’s site Visit is to be done independently by BM’s and visit report to be kept on record.
- Valuation certificate be obtained, if purchase of plot/flat/built house
- Ensure 2nd man recommendation as per bank norms
Post sanction
 All the requisite documents, be obtained, duly stamped, properly executed and held on record.
- Create equitable mortgage at centre notified by Govt/ registered mortgage (enter in CERSAI for
EM only)
 Mutation in bank favour in revenue/municipality record for registered mortgaged only.
- Disbursement in stages for construction, subsequent disbursement after end use verification of
previous installments.
- Disbursement in lump sum along with margin to vendor if purchase of plot/flat/built up house.
 Approved architect completion certificate along with photograph of IP,s duly signed by bank official.
 -Legal vetting ( Rs.5lac and above) from approved advocate other than who have given NEC.
 Insurance cover with bank clause (land/plot value not included.
 Documents
• Application-SUPGB-1054, H/L Agreement- SUPGB-1121, Agreement for Plot- SUPGB-1123,Tripartite-
Agreement - SUPGB-1126, Mortgage Deed-SUPGB-1122,Letter of Possession- SUPGB-1127
• ………………………………………………………..