Housing Loan Circular

खुदरा ऋण विभाग
Retail Credit Department

प्रधान कार्ाालर्: लोकमंगल, 1501, शिवाजीनगर, पण
ु -े 5
Head Office: Lokmangal,1501,Shivajinagar,Pune-5
टे लीफोन/Tel : 020-25614264
ई-मेल/e-mail : retail_credit@mahabank.co.in
AX1/Credit Priority/ Retail/Housing/Cir. 83 /2019-20 12th September, 2019
ALL BRANCHES AND OFFICES OF THE BANK
Dear Sir/Madam,
MASTER CIRCULAR
Sub: Master Circular – Maha Super Housing Loan Scheme
Please refer to Master Circular of “Maha Super Housing Loan Scheme” issued vide HO
Circular No. AX1/Credit Priority/Master Housing/Cir-9/2018-19 dated 21st April, 2018 and
subsequent guidelines issued vide circular no. AX1/PSRC/Takeover Guidelines/162/2018-19
dated 8th March, 2019, Circular No. AX1/Credit Priority/Hsg Loan/Cir-171/2018-19 dated 26th
March 2019, Circular No AX1/Credit Priority / Hsg Loan / Cir. 51/2019-20 dated 16th July 2019,
and AX1/PSRC/Retail /Cir No. 73/2019-20 3rd September, 2019, consolidating instructions /
guidelines / modification issued to branches/field offices pertaining to Maha Super Housing
Loan scheme up to 09.09.2019.
Maha Super Housing Loan Scheme is one of the best and competitive product in the market.
This contributes to 75% share out of our Total Retail portfolio. In this regard, our Department
is receiving many queries under the scheme with small doubts / clarifications. As referring of
information at various places is itself time consuming and deterrent in knowledge updation,
Retail Department has consolidated all the guidelines pertaining to Maha Super Housing Loan
Scheme. This circular also includes all the Annexures (Tripartite Agreements, Appraisal Note,
Sanction letter format etc.) of Maha Super Housing Loan scheme.
We are sure, this would be a single point reference which would help the users for ease
of processing / disbursing.
All Zonal Offices / Branches / CPC-Rs are advised to make use of this circular and take
decision suitably as per the scheme & improve the quality and quantum of our Housing
Loan Portfolio and TAT.
Yours Faithfully,
Javed Q. Mohnavi Nalini Shriraman

Asst. General Manager General Manager
Retail Credit Retail Credit & MSME
Page 1 of 159
Master Circular - Housing Loan
Maha Super Housing Loan Scheme
(for Internal Circulation only)
INDEX
Sl. No. Particulars Page No
1 Purpose 5
2 Scope of the Scheme 5
3 Classification under Priority Sector 5
4 Eligibility 5
5 Age 6
6 Eligible Quantum of Loan 6
7 Maximum Quantum of Loan 6
8 Loan to value and Margins Norms 6
9 Guarantor 7
10 Scheme for construction / acquiring of new or existing house/flat and
extension of existing house/flat 8
10.1 Purpose 8
10.2 Borrower Contribution /Margin 8
10.3 Quantum of Finance 8
10.4 Moratorium Period 10
10.5 Repayment 10
10.6 Deduction Norms 11
11 Scheme for Purchase of Plot & construction thereon 11
11.1 Purpose 11
11.2 Eligible Quantum of loan 11
11.3 Margin 11
11.4 Moratorium 12
11.5 Repayment 12
12 Scheme for repairs/ renovation/ alteration of existing house/flat for new
standalone borrowers 13
12.1 Purpose 13
12.2 Min. Annual Income 13
12.3 Eligible Quantum of loan 13
12.4 Margin 13
12.5 Repayment 13
13 REPO Linked Lending Rate (RLLR) Housing Loan 13
13.1 Purpose 13
13.2 Min. Annual Income 14
13.3 Quantum of Finance 14
13.4 Margin 14
13.5 Moratorium Period & Repayment 14
14 Rate of Interest for MCLR based Housing Loan 15
15 Rate of Interest for RLLR Housing Loan 16
Page 2 of 159
16 Switch over option to current Rate of Interest 16
17 Assessment of Income & Loan Quantum 16
18 Documentation 18
19 Mode of Disbursement 19
20 Security 20
21 Mode of Creation of Mortgage Charge 21
22 Pre-disbursement Compliances 24
23 Post sanction supervision & follow-up 24
24 Insurance coverage of Housing Property 25
25 Processing Fee & Other Charges 25
26 Prepayment Charges 26
27 Waiver of EMIs 26
28 Credit Scoring Model 26
29 Product code & Activity code 26
30 Takeover of Loan Guidelines 27
31 NRI Guidelines 31
32 CRE Guidelines 32
33 Valuation & Lawyer’s Fees 33
34 Charges for Due diligence Agencies 33
35 DSA’s Commission 34
36 Role & responsibilities of Service Providers 34
37 Roles & Responsibilities of CPC-R (Mapped Branches) 35
38 Roles & Responsibilities of Unmapped Branches 35
39 Deviation authority 37
40 General guidelines 37
41 Engagement of DSAs 39
42 Residential project approval 40
Annexures
Annexure Particulars Page No
1 Housing loans credit scoring model 47
2 Top-up loan and repair & renovation scoring model 51
3 Check list for housing loan 54
4 Pre Sanction Visit Report for Housing Loan 56
5 Post Sanction Visit Report for Housing/ Repair renovation/ Top Up Loan 58
6 Sanction Letter Format 61
7 Format for In-principle Sanction 64
8 Appraisal Note Format 68
9 Most Important Terms and Conditions 77
10 Equitable Mortgage Register & Title Deed Movement Register 81
11 Builders project approval application and format 82
11.1 Documents Required For Establishing Tie-Up Arrangement In Respect Of
Housing Project 82
11.2 Letter From The Builder For Project Tie Up 83
Page 3 of 159
11.3 Undertaking format for Builder 87
11.4 Affidavit-Cum-Declaration 88
11.5 CA’s certificate 90
11.6 Format for Approval of Housing Project 92
11.7 Format for Confidential report about Builder from their Banker 95
12.1 Tripartite Agreement between Borrower, Builder & Bank 98
12.2 Tripartite Agreement between Borrower, IRWO & Railway 103
12.3 Tripartite Agreement between Borrower, AWHO & Bank 106
12.4 Tripartite Agreement between Borrower, CGEWHO & Bank 112
13 NRI Corner 115
14 Step by Step Housing Loan Account Opening 122
15 SOP- Housing Loan 129
16 Do’s And Don’ts for Housing Loans 136
17 FAQ on CIBIL 143
18 FAQ on Housing Loan 149
Page 4 of 159
Master Circular – Maha Super Housing Loan Scheme
1 Purpose  For construction / acquiring of new or existing house/flat not older than 30
years (Residual life of the building should be 5 Years more than the tenure).
 For Purchase of residential flat under construction /ready directly from the
builders/ developers/society/other agencies/Development authority.
 For extension (additional construction) in the existing house/flat
 For purchase of plot and construction thereon
 For repairs/renovation/alteration of existing house/flat as new standalone
borrowers
 Takeover of existing Housing Loan accounts of the applicants under standard
category availed from other Banks / Housing Financial Institutions.
2 Scope of the Maha Super Housing Loan Scheme covers all the Indian Citizens, Non Resident
Scheme Indians (NRIs) and persons of Indian Origin (PIO) including staff members
outside the staff loan scheme, ex- staff, & their family members.
3 Classification 1) Loans to individuals up to 35 Lakhs in metropolitan centers (with population
under Priority of ten lakh and above) and loans up to 25 Lakhs in other centers for purchase
Sector / construction of a dwelling unit per family, are eligible to be considered as
priority sector provided the overall cost of the dwelling unit in the metropolitan
center and at other centers does not exceed 45 lakhs and 30 Lakhs,
respectively. Housing loans to banks' own employees (under Staff
schematic) are not eligible for classification under priority sector.
2) Loans for repairs to damaged dwelling units of individuals up to 5 Lakhs in

metropolitan centers and up to 2 Lakhs in other centers are eligible to be
considered as priority sector.
A family comprising of husband, wife and unmarried children. An adult earning

member (irrespective of marital status) can be treated as a separate household.
4 Eligibility  Individual salaried employees (with a permanent job for the period of
minimum 1 year in current organization of State /Central Government / Public
/ Private Sector Companies of repute), Self-Employed Professionals,
Businessman, Pensioners (only in case of Defense professional retired after
short service commission or having less than 60 years of age subject to
having pension account with us & sufficient disposable income), Farmers
having minimum land holding of 5 Acres of irrigated land and sufficient
disposable income.
 In case of agriculturists not filing income tax returns, latest income certificate
issued by Tahsildar/Mandal Revenue Officer/Revenue Department Officer
having State Level Gazette rank/ Income certificate issuing authority notified
by GOI can be accepted for sanction of housing loans up to Rs.25.00 lakh
 In case of Housing Loan to farmers, the loan should be given only if
agriculture related loans are not NPA. The assessment of income
should be based upon regular cash flow as per the EMI pattern on
Monthly basis.
Loan request for considering relaxation in service period below 1 year in
current organization shall be considered by Zonal Manager’s committee
on case-to- case basis. (The same may be relaxed on the basis of previous
work experience if any)
Page 5 of 159
5 Age (i) Minimum: The applicant/s must be 21 years old (completed) as on the date
of application
(ii) Maximum:
 65 Years for Professional working as self-employed i.e. for
Doctors/Architects/CAs etc.
 60 years for others (Salaried, Businessmen, etc.), subject to having
sufficient disposable income.
Other Conditions:
 Age at Loan Maturity should not exceed 75 Years.
 Age Criteria/Service Criteria is to be applied only to the applicant
or/and Co-applicant whose income is relied upon for deciding loan
eligibility and repayment conditions.
 If income of applicant and co applicant maintained with in ratio of 75:25 for
repayment then the age of applicant will be considered for deciding loan
tenure. Otherwise higher age of co applicants will be considered for
deciding loan tenure.
6 Eligible a) Salaried : 60 times of Gross Monthly Salary/ 75 times of Net Monthly Salary
Quantum of (Whichever is Higher)
Loan
b) Professional: 5 times of last 2 years average income based on IT Returns
c) Others (Businessmen): 5 times of last 3 years average Income based on IT

Returns
 In case of Proprietary concerns and Professionals & Self-employed, total

income would also mean Cash Accruals.
 The income of Father, Mother, son, daughter, sister, brother, along with the
spouse can be taken for deciding the quantum of loan and repayment
capacity. Those persons should be taken as co-borrowers compulsorily.
Similarly all the owners of the house property against which loan is proposed
should be taken as co-borrowers compulsorily.
 Maximum three co applicants can join for deciding quantum of Loan

repayment capacity.
7 Maximum Need based Finance
Quantum of
Loan
8 Loan to value Loan to value (LTV) ratio
and Margins
Category of Loan LTV Ratio Minimum Margin
Norms
(Individual Home Loan
amount)
Up to Rs.30.00 Lakh 90% 10%
Above Rs.30.00 Lakhs 80% 20%
and up to Rs.75.00 Lakhs
Above Rs.75.00 Lakhs 75 % 25%
Maximum loan amount shall be restricted to the LTV ratio as prescribed by RBI,
calculated on the lower of the following values (A or B).
Page 6 of 159
A)
 Value mention in the agreement to sale plus one time cost of additional
amenities and other costs related to the property which are permanent in
nature and add up to the realizable value of the security / Property.
 Township corpus fund.
 One time maintenance fund/Deposit/Corpus.
 Development Charges
 Premium of Insurance of Mortgage property.
 One time Generator charges
 Club house membership charges
 Electricity / Water / Sewerage board one time charges / Deposit /GST etc.
 GST is added as part of the project cost for assessing loan amount.
AND
B) Current Market value as per the latest Valuation report.
Other Guidelines:
 Stamp duty, registration and other documentation charges, cost of
life insurance cover on the life of the borrower and any other non-
realizable costs should not be included in cost of housing unit.
 However In case of the borrowers from Economically weaker
sections (EWS) and Low income groups (LIG), these charges (Stamp
duty, registration and other documentation charges) may be added
to the cost of the house/dwelling unit for the purpose of calculating
LTV ratio/minimum margin requirement, where the cost of the
house/dwelling unit doesn’t exceeds Rs.10.00 lakh.
 Cost of furnishings / interior/Modular kitchen/etc. is added to the cost of
the house/ flat for acquiring of new or existing house / and new or
extension in the existing house/Flat. The loan component for this purpose
being limited to 10% of agreement value of flat and estimated value of
construction or Rs.10.00 lakh, whichever is less. Cost of construction of
house inclusive of the cost of all non-movable fixed assets, fittings; being
constructed thereon, which have not been included in the construction
agreement, as assessed by the applicants or their engineers, should be
got vetted by the panel valuers / Govt. approved registered engineers for
it fairness. Amount towards cost of furnishing / interior /Modular kitchen
etc. will be disbursed to the borrowers in two or more installments based
on actual progress in works related to interior and furnishing.
 The charges levied by the builders has to be incorporated within
agreement to Sale which is to be notarized as per prevalence or registered
depending on, as in vogue at the locality.
 In nutshell the capital expenditure item in the Project cost can be
considered under Eligible for finance and excluding all the revenue
expenditure items.
9 Guarantor  Spouse of the applicant should be taken as co-applicant and in that case
Guarantor should not be insisted upon.
 In case of other co-applicants (Father, Mother, Brother Etc.), Guarantor
should not be insisted.
 Incase co- applicant is not available, one guarantor acceptable to bank
has to be obtained having matching net worth.
The above features will remain applicable to all Housing Loan scheme with various purpose mentioned below
until specified otherwise:
Page 7 of 159
I. Scheme for construction / acquiring of new or existing house/flat and extension of existing
house/flat
10 Scheme For construction / acquiring of new or existing house/flat and extension of

existing house/flat
10.1 Purpose Loans to individual for
 For construction / acquiring of new or existing house/flat not older than 30
years.
 For Purchase of residential flat under construction directly from the builders/
developers.
 For extension in the existing house/flat
10.2 Borrower Borrower contribution
Contribution
/Margin Loan Amount LTV Ratio Minimum Margin
Up to Rs.30.00 Lakh 90% 10% of value of construction/ value of
property as applicable
Above Rs.30.00 Lakhs 80% 20% of value of construction/ value of
and up to Rs.75.00 Lakhs property as applicable
Above Rs.75.00 Lakhs 75 % 25% of value of construction/ value of
property as applicable
Margin for funding the capital cost of purchase , construction of residential house /
Flat etc. shall have to be provided by the applicants & co- applicants from
identifiable personal savings , sale proceeds of liquid & semi liquid investments &
such other pre-owned assets. Applicants should clearly indicate the source of
Margin and provide documentary evidence for the same.
 Margin component shall be infused pro-rata in accordance with release of
housing Loan.
 Amount already invested in advance by the borrower towards the capital cost
of the asset shall be reckoned, while computing the share of borrower’s
margin provided proof / confirmation thereof is held on record.
There shall be inspection by the branch head or other officers assigned with the
task and Govt. approved engineers / valuers nominated by the Bank while
releasing the loan in stages, in order to verify the work progress (physical
progress).
10.3 Quantum of The quantum of finance shall depend upon the Maximum permissible LTV ratio
Finance and repaying capacity of the borrower. Repaying capacity shall take into the
factors like age, income, Co- applicant income and continuity of occupation. The
quantum of finance can be calculated based on the following values less Margin
1) In case of construction of New Residential House.
Cost of construction of House – inclusive of the cost of all non-movable fixed
assets, fittings; being constructed thereon.
In case of construction of individual house , where plot is already owned by the
borrower , the LTV will be calculated on the estimated cost of construction , duly
vetted by empaneled valuer / Govt. approved Architect/Engineer, plus the
current market value of the plot (as per the latest valuation report).
2) Purchase of New ready built independent house or Flat.
Page 8 of 159
Either purchase cost Excluding Registration, stamp duty, and other
documentary charges (exception as mentioned in Sl. No. 8 in Page No.
5 in Other Guidelines). Or
Present Market value of the Flat/House as assessed by the empaneled valuer
– whichever is lower.
3) Purchase of New Under construction independent house or Flat

Cost of construction of the Flat as per construction agreement with the builder
(or Tripartite agreement or any other agreement of similar nature which defines
the builder‘s responsibility to complete the construction of the structure under
construction) Excluding Registration, stamp duty, and other documentary
charges (exception as mentioned in Sl. No. 8 in Page No. 6 in Other
Guidelines).
4) Extension (additional construction) in the existing house/Flat.
 Estimate of cost of construction as per the Govt. approved engineers /
Valuers, duly vetted by the panel valuers for its fairness.
 Architect’s / Valuer’s estimate to be taken for assessing the cost of extension
with certificate the proposed extension is within the ambit of regulatory
guidelines / approved map.
 For house/Flat which is older than 20 years but not more than 30 years,
Branch to ascertain structural soundness of the building by obtaining an
approved engineer’s certificate, certifying the structural soundness as well
as residual life of the building which should be at least 5 years more than the
repayment period considered for currency of loan.
5) For purchase of old house/flats not older than 30 years
 Present Market value of the Flat / House as assessed by the empaneled
valuer or agreement to sale value (Excluding Registration, stamp duty,
and other documentary charges) whichever is lower.
 For house/Flat which is older than 20 years but not more than 30 years,
Branch to ascertain structural soundness of the building by obtaining an
approved engineer’s certificate , certifying the structural soundness as well
as residual life of the building which should be at least 5 years more than the
repayment period.
 Loan request for purchase of old house/flats older than 30 years shall
be considered by Zonal Manager’s committee on case-to- case basis
subject to structural stability report by Govt. approved Structural
Engineer and valuation report by valuer on panel provided residual life
of the building/structure should be at least 5 years more than the
repayment period.
6) Adding Cost of furnishing / interior to the cost of House / Flat.
Cost of furnishings / interior/Modular kitchen/etc. is added to the cost of the house/
flat for acquiring of new or existing house / and new or extension in the existing
house/Flat. The loan component for this purpose being limited to 10% of
agreement value of flat and estimated value of construction or Rs 10.00 lakh,
whichever is less. Cost of construction of house inclusive of the cost of all non-
movable fixed assets, fittings; being constructed thereon, which have not been
included in the construction agreement, as assessed by the applicants or their
engineers, should be got vetted by the panel valuers / Govt. approved registered
engineers for it fairness. Amount towards cost of furnishing / interior /Modular
Page 9 of 159
kitchen etc. will be disbursed to the borrowers in two or more installments based
on actual progress in works related to interior and furnishing.
7) Inclusion of cost of Solar Photo Lightening System.
The cost of rooftop Solar Photo Voltaic System may be included in the cost /
agreement of sale value for arriving at the Home Loan eligibility for purchase /
Construction / Extension (additional construction) of residential units in respect of
all applicants willing to install such system. The cost of consideration will be based
upon the quotation received from the authorized dealers/agencies. (Refer HO
circular AX1/Credit Priority/Maha Super Hsg/Cir. 35/2015-16 dated 21.07.2015)
10.4 Moratorium
Period Construction of residential Maximum of 36 months from date of first
House & purchase of Flat disbursement. However interest may be
under construction capitalized for a maximum period of 18 months
thereafter Interest to be serviced as and when
applied.
Purchase of New/Existing Maximum of 2 months from date of first
ready built house or Flat disbursement of Loan
Extension of existing Pre- Maximum of 18 months from date of first
owned Residential building disbursement,
Takeover of Housing Loan From the next month from the date of
disbursement.
However in all cases maximum tenor will be 30 years or on borrower
reaching the age of 75 years whichever is earlier. Interest capitalization
request may be considered by maintaining the necessary margin and LTV.
10.5 Repayment For construction/acquiring of new House/Flats:
 Maximum Repayment period of 30 years or on borrower reaching the age of
75 years whichever is earlier.
 If the applicant is more than 60 years old, immediate legal heir should
be made Guarantor/Co-Borrower and duly documented consent of all
other legal heirs should be obtained for raising the loan.
For purchase of old house/flats not older than 30 years:
Maximum period of 30 Years or on borrower reaching the age of 75 years
whichever is earlier subject to residual life of the building is at least 5 years more
than the repayment period.
For extension of existing Housing / flat
Maximum period of 30 Years or on borrower reaching the age of 75 years
whichever is earlier subject to residual life of the building is at least 5 years more
than the repayment period.
*For house/Flat which is older than 20 years but not more than 30 years, Branch
to ascertain structural soundness of the building by obtaining an approved
engineer’s certificate , certifying the structural soundness as well as residual life of
the building which should be at least 5 years more than the repayment period.
Other Conditions
In case of salaried individuals, the repayment period may be extended beyond the
retirement of the employee up to maximum age of 75 years, provided the post-
retirement income is adequate to meet the EMI liability as per deduction norms.
(*Keeping Term Deposit under lien with Bank need not to be insisted upon.)
Page 10 of 159
10.6 Deduction For Salaried:-
Norms
Gross Monthly Income Permissible Deduction FOIR*
Less than Rs. 25000/- Maximum 60% 60%
Rs.25000/- to Rs.2.00 lakh Maximum 65% 65%
Above Rs.2.00 lakh Maximum 70% 70%
For others:
Gross Annual Income Permissible Deduction FOIR*
Less than Rs.3.00 lakh Maximum 60% 60%
Rs.3.00 lakh to Rs.20.00 lakh Maximum 65% 65%
* FOIR – Fixed Obligation Income Ratio
In any case total deductions of gross income shall not exceed maximum
permissible deduction as mentioned above
It is to be noted that the EMI/NMI* ratio should not exceed 60% during the
currency of the loan.
*-NMI-Net Monthly Income
II. Scheme for Purchase of Plot & construction thereon

11 Name of the Maha Super Housing Loan Scheme for Purchase of Plot & construction
scheme thereon
11.1 Purpose For purchase of plot and construction thereon by obtaining declaration from the
borrower that he/she/they undertake to construct the house on the plot within a
period of three years.
11.2 Quantum of For Plot Loan:
finance  70% of the cost (registered value) of Plot and estimated cost of
construction after complying with Net Take Home Pay/Income norms.
 Plot on standalone basis should not be financed.
 Cost of the Plot should not exceed 75% of the total cost of housing unit.
For Construction Loan:
Cost of construction of House – inclusive of the cost of all non-movable fixed
assets, fittings; being constructed thereon.
The LTV will be calculated on the estimated cost of construction, duly vetted by
empaneled valuer / Govt. approved Architect/Engineer, plus the current market
value of the plot (as per the latest valuation report).
11.3 Margin  For Purchase of Plot :- Minimum 30% of the registered value of the plot
 For construction of House (Overall project cost including value of the
plot should be taken for LTV, ensuring separate margin for plot)
Loan Amount LTV Ratio Minimum Margin

Up to Rs.30.00 Lakh 90% 10% of value of construction
Above Rs.30.00 Lakhs and up to 80% 20% of value of construction
Rs.75.00 Lakhs
Above Rs.75.00 Lakhs 75 % 25% of value of construction
Page 11 of 159
11.4 Moratorium For Purchase of Plot – No moratorium period for Plot loan
For construction of House - Maximum of 36 months from date of first
disbursement.
 However interest may be capitalized for a maximum period of 18 months
thereafter Interest to be serviced as and when applied.
 Interest capitalization request may be considered by maintaining the
necessary margin and LTV.
 Loan account should be opened separately for purchase of Plot &
construction loan.
11.5 Repayment  Maximum Repayment period of 30 years or on borrower reaching the
age of 75 years whichever is earlier
If the applicant is more than 60 years old, immediate legal heir should be
made Guarantor/Co-Borrower and duly documented consent of all other
legal heirs should be obtained
Other Conditions
a) In case of salaried individuals, the repayment period may be extended

beyond the retirement of the employee up to maximum age of 75 years,
provided the post-retirement income is adequate to meet the EMI
liability.
b) Repayment of the loan will start one month after the purchase of plot.
c) If Construction of House is not started within 2 years, rate of interest will be

2% above the normal rate of interest as per Para 14 (Rate of Interest) to be
applicable after 2 years.
Norms
For others:

currency of the loan.
*-NMI-Net Monthly Income
Page 12 of 159
III. Scheme for repairs/renovation/alteration of existing house/flat for new standalone borrowers
12 Name of the Maha Super Housing Loan Scheme for repairs/renovation/alteration of

scheme existing house/flat for new standalone borrowers
12.1 Purpose  For repairs/renovation/alteration of existing house/flat for new standalone
borrowers on an unencumbered house property
12.2 Min. Annual  For Salaried: Rs.3.00lakh (last year income) - Minimum past 2 year ITR/Form
Income 16 from the Employer is Mandatory.
 For Self-employed Professionals: Rs.3.00lakh (as per last year ITR income)
- Minimum past 2 year ITR with supporting documents are mandatory.
 For Businessmen: Rs.3.00lakh (as per last year ITR income) - Minimum past
3 year ITR with supporting documents are mandatory.
 For Persons engaged in Agriculture & Allied activities having ascertainable
Minimum income of Rs.3.00lakh.
12.3 Eligible a) 100% of the actual cost of repairs/renovations/alterations
Quantum of loan
b) Maximum Quantum : Maximum up to 25% of the realizable value of the
property based on the latest valuation report not older than 3 months
*Lower of (a) or (b)
12.4 Margin  NIL
12.5 Repayment  Maximum Repayment period of 20 Years
 No Moratorium period is allowed
Norms
For others:
currency of the loan. (*-NMI-Net Monthly Income)
IV. REPO Linked Lending Rate (RLLR) Housing Loan
13 Name of the REPO Linked Lending Rate (RLLR) Housing Loan

scheme
13.1 Purpose Loans to individual for
 For construction / acquiring of new or existing house/flat not older than 30
years.
 For Purchase of residential flat under construction directly from the
builders/ developers.
 For extension in the existing house/flat
Page 13 of 159
 The scheme is not available for purchase of only Plot of Land (in exclusive)
& Repair & Renovation.
13.2 Min. Annual  Minimum Gross Annual Income should be Rs.6.00 Lakhs
Income
13.3 Quantum of Quantum of Finance shall be considered as per Sl. No. 11.3 mentioned above.
Finance
13.4 Margin
Loan Amount LTV Ratio Minimum Margin
Up to Rs.30.00 Lakh 90% 10% of value of construction
Above Rs.30.00 Lakhs and 80% 20% of value of construction
up to Rs.75.00 Lakhs
Above Rs.75.00 Lakhs 75 % 25% of value of construction
13.5 Moratorium Moratorium Period

Period & 1. For under construction House & Projects
Repayment  Maximum 24 months Moratorium period is allowed, however interest to
be serviced as and when applied.
 Interest applied during selected moratorium period should be recovered
from borrower monthly.
2. For Ready to move Property / Ready built Flat /Unit, the repayment should
start from one month from the date of disbursement of loan.
Repayment
 Maximum 30 Years and up to age of 75 years whichever is lower.(including
Moratorium Period)
Other Conditions
 In case of salaried individuals, the repayment period may be extended
beyond the retirement of the employee up to maximum age of 75 years,
provided the post-retirement income is adequate to meet the EMI liability as
per deduction norms
Loan request for purchase of old house/flats older than 30 years shall be
considered by Zonal Manager’s committee on case-to- case basis subject to
structural stability report by Govt. approved Structural Engineer and valuation
report by valuer on panel provided residual life of the building/structure should be
at least 5 years more than the repayment period.
Norms
Above Rs.2.00 Lakh Maximum 70% 70%
For others:
currency of the loan. (*-NMI-Net Monthly Income)
Page 14 of 159
14 Rate of For Construction of House, Purchase of Flat/Individual House, Purchase of Plot
Interest for & Construction thereon:
MCLR based
Housing Loan Salaried Non Salaried
(Floating) Loan Amount CIBIL score
ROI ROI
750 & above MCLR(Y) MCLR(Y) + 0.10 %
700 to 749 MCLR(Y) + 0.05 % MCLR(Y) + 0.20 %
650 to 699 MCLR(Y) + 0.10 % MCLR(Y) + 0.30 %
Up to Rs.30 Lakh
600 to 649 MCLR(Y) + 0.20 % MCLR(Y) + 0.50 %
Below 600 MCLR(Y) + 0.30 % MCLR(Y) + 0.75 %
-1 to 05 MCLR(Y) + 0.05 % MCLR(Y) + 0.30 %
750 & above MCLR(Y) MCLR(Y) + 0.10 %
700 to 749 MCLR(Y) + 0.05 % MCLR(Y) + 0.30 %
Above Rs.30 Lakh & 650 to 699 MCLR(Y) + 0.10 % MCLR(Y) + 0.50 %
Up to Rs.75.00 Lakhs 600 to 649 MCLR(Y) + 0.20 % MCLR(Y) + 0.75 %
-1 to 05 MCLR(Y) + 0.05 % MCLR(Y) + 0.30 %
750 & above MCLR(Y) + 0.05 % MCLR(Y) + 0.15 %
700 to 749 MCLR(Y) + 0.10 % MCLR(Y) + 0.25%
650 to 699 MCLR(Y) + 0.20 % MCLR(Y) + 0.50 %
Above Rs.75 Lakh
600 to 649 MCLR(Y) + 0.40 % MCLR(Y) + 1.00 %
-1 to 05 MCLR(Y) + 0.10 % MCLR(Y) + 0.50 %
* MCLR(Y) is equivalent to 1 year MCLR (i.e. 8.50% currently).
For Repair/Renovation/Alteration:
Particulars ROI
Up to Rs.100.00 Lakh 1 year MCLR + 1.25%
Above Rs.100.00 lakh 1 year MCLR + 1.75%
For CRE Housing Loans:
Loan Amount ROI

Up to Rs.100.00 Lakh 100bps over and above the prevailing ROI as
per CIBIL mentioned above
Above Rs.100.00 lakh 125bps over and above the prevailing ROI as
per CIBIL mentioned above
 Interest will be charged on daily basis with Monthly Rests.

 Maximum 0.05% discount to be allowed to women and armed forces
(including paramilitary forces) personnel, subject to 1 year MCLR.
 If the applicant falls under above two category, then any one (higher
concession) should be given. Wherever interest concession be given, it is
to be ensured that the interest rate is subject to floor rate of MCLR.
Page 15 of 159
15 Rate of The ROI for RLLR Housing Loan is as below
Interest for Salaried Non Salaried
RLLR Housing Loan Amount CIBIL score
ROI ROI
Loan
(Floating) 750 & above RLLR RLLR + 0.10 %
700 to 749 RLLR + 0.05 % RLLR + 0.20 %
650 to 699 RLLR + 0.10 % RLLR + 0.30 %
Up to Rs.30 Lakh
600 to 649 RLLR + 0.20 % RLLR + 0.50 %
Below 600 RLLR + 0.30 % RLLR + 0.75 %
-1 to 05 RLLR + 0.05 % RLLR + 0.30 %
750 & above RLLR RLLR + 0.10 %
700 to 749 RLLR + 0.05 % RLLR + 0.30 %
Above Rs.30 Lakh & 650 to 699 RLLR + 0.10 % RLLR + 0.50 %
Up to Rs.75.00 Lakhs 600 to 649 RLLR + 0.20 % RLLR + 0.75 %
Below 600 RLLR + 0.40 % RLLR + 1.00 %
-1 to 05 RLLR + 0.05 % RLLR + 0.30 %
750 & above RLLR + 0.05 % RLLR + 0.15 %
700 to 749 RLLR + 0.10 % RLLR + 0.25%
650 to 699 RLLR + 0.20 % RLLR + 0.50 %
Above Rs.75 Lakh
600 to 649 RLLR + 0.40 % RLLR + 1.00 %
Below 600 RLLR + 0.50 % RLLR + 1.25 %
-1 to 05 RLLR + 0.10 % RLLR + 0.50 %
 Current RLLR is 8.45% effective from 01/09/2019.

 Interest will be charged on daily basis with monthly rests.
 The interest rate on linkage to Repo Rate will change upwards or downwards
as the case may be, in line with movement of the Repo linked Lending Rate
(RLLR) as per Bank’s policy. (In case of change in Policy Repo Rate, RLLR
will be changed from 1st day of the following month)
16 Switch over Conversion of existing housing Loan under “Maha Super Housing Loan
option to current Scheme” from Base Rate to MCLR:-
Rate of Interest
 A nominal fee of Rs.1000/- as a convenience fee to convert existing Maha
Super Housing Loan from Base Rate/ BPLR to MCLR. Any spread applicable
at the time of sanction shall continue.
 However if borrower is interested to avail the ongoing spread under MCLR,
then processing charge of 0.50% on outstanding amount is applicable.
 Switch over facility is not permitted under RLLR Housing Loan.
17 Assessment of MODE OF DETERMINATION OF INCOME OF THE APPLICANT FOR
Income & Loan ASSESSMENT OF LOAN QUANTUM
Quantum 1) In case of salaried applicants (only permanent/confirmed employees), based
on the last drawn salary certificate/slip issued by the employer
Note :
 It is necessary to verify the salary slips covering the minimum period of 6-
12 months in order to ascertain the normal income flows. Further,
verification of the veracity & genuineness of such salary certificates by the
empaneled additional due diligence agencies at the pre-sanction stage
itself shall also be essential.
Page 16 of 159
 Salary slips of only permanent/confirmed employees can be reckoned for
assessment of loan quantum.
2) In case of other categories of applicants (non- salaried applicants) –based on
the average income for the immediate preceding three years / 36 months (for
Businessmen) or 2 years / 24months (for Professionals) as per the
applicability.
Note :
 Copies of Income Tax Returns covering the period of three years shall be
obtained (ITR including acknowledgement receipts & assessment report
specially in case of Businessmen / Self-employed Professional to verify
Genuinity, for service class Form 16 is also there to cross verify). The basis
for computation of income shall be average income for the immediate
preceding three years for Businessmen. In case of Self-employed
Professionals, latest two years ITR shall be obtained and computation of
income shall be average income for the immediate preceding two years.
 In such cases, gross income (net income plus depreciation) shall be the
basis for computation of average income. However, the veracity &
genuineness of such IT Returns needs to be got verified with the help of
empaneled service providers at the pre-sanction stage.
 In case of employee applicants, who have recently joined the organization
in which they are presently employed, previous employment details,
income for the minimum period of six months in the previous organization,
shall be obtained for evaluation and verified through due diligence
agencies. Only permanent/ confirmed salaried employees shall qualify for
submission of application under Maha super Housing Loan Scheme.
Total income defined as above, shall be the basis for assessment of loan
quantum. However it should be ensured that, total of deductions plus
obligations towards existing repayment commitments and EMI for the proposed
Housing Loan shall not exceed 60%/65%/70% of gross income of the applicant.
Following income which is of non-permanent in nature not to be considered while
calculating the repayment capacity of borrowers until it is substantiated by the
bank statement as regular
 Beauty parlor/ Boutique income

 Tuition income
 Brokerage
 Free lancing income of irregular and inconsistent nature
 Other income of non-permanent in nature
In case of rental income usually 50% of total expected annual rent should be
considered and it should be verified with bank statements (1 Year) and ITR.
The primary income necessarily be salary or business income of the borrower.
In case of income consideration, the gross income has to be taken for
assessment purpose than net off (excluding the exemption income as permitted
under IT Act) shown in ITR.
Computation of loan eligibility:
1. Eligibility based on income:
 Salaried : 60 times of Gross Monthly Salary/ 75 times of Net Monthly
Salary (Whichever is Higher)
 Others (Businessmen etc.): 5 times of last 3 years average Income
based on IT Returns
Page 17 of 159
 Self-employed professionals: 5 times of last 2 years average Income
based on IT Returns
2. Eligibility based on repayment capacity: to be calculated as below
a. Annual Gross Income
b. 60% or 65% or 70% of gross income as per income norms
c. Deductions & Repayments
i. All the documented/known deductions as per the salary
slip/ITR
ii. Component of income tax & other statutory taxes
iii. EMI & repayment commitments in respect of existing loans
from our bank & other bank including credit card payments if
installment exceeds 1 year term.
iv. EMI towards proposed Housing loan
d. If (b – c) is positive, the loan can be sanctioned. If it is negative, revise
the loan by reducing it until it becomes positive.
3. Eligibility based on LTV / Margin norms
4. Loan sought by Applicant.
Eligible Quantum of loan is least of 1 or 2 or 3 or 4.
Note: In case Business loan availed by the applicant, and interest portion
of the same included in P & L account, principal amount to be paid should
be taken into consideration for calculation of existing loan EMIs.
18 Documentation Documentation process shall have to be completed before release of the loan
based on the guidelines. Following points should be considered for documentation
process:
 Documentation shall be duly stamped as per the prevailing Laws of State
in which the documents are being executed.
 All the property documents as suggested by the Panel Advocate for
creation of effective mortgage charge in favor of Bank shall have to be
obtained at the prerelease stage itself.
 Loan documents are subjected to Legal Audit upon disbursement.
Wherever possible such legal audit shall have to be handled by an
alternative advocate, other than the one who has furnished the opinion of
the property.
 Discrepancies in documentation observed if any during the course of Legal
Audit shall have to be got rectified immediately.
 In the context of the order of Delhi High Court on unauthorized
constructions, an affidavit cum undertaking must be obtained from the
applicants affirming that the building shall be constructed in accordance
with approved building plan and that it shall be his sole responsibility to
ensure & obtain completion certificate from the competent authority within
three months of completion of construction- failing which bank reserves
the right to recall the entire loan together with interest cost & other
damages.
 Further a certificate by the bank approved valuer/engineer shall be
obtained stating that the construction is as per the approved building plan.
 In case of purchase of ready built houses the applicant shall furnish either
an affidavit cum undertaking stating that the property being purchased has
been constructed as per the approved plan and the prevailing bye-laws, or
the occupation certificate issued by competent authority. Valuation report
to be furnished by empaneled valuer shall also specify that the deviation
Page 18 of 159
in approved construction plan noticed, if any, is with the permission of the
Statutory Authority.
During the currency of Loan, original title deed cannot be parted with, under any
circumstances. However, scrutinizing the same by the owner can be allowed,
only in the presence of Branch Head or his authorized representative within the
branch premises. Certified Photo Copies of the original title deeds may be
furnished against specific written request only to the owner, boldly mentioning
in each page of the copy as certified true copy. Apart from regular
documentation, obtain the following documents also for customers having
Salary / Business account with other Bank:
1. Obtain minimum 6 PDCs undated
2. NACH mandate with cancelled Cheque.
19 Mode of 1. For construction of house in the pre-owned site:
Disbursement  To be released in 3-4 stages directly to the operative account of the borrower
to be utilized for house construction in stages against specific written
request by the borrower after confirming the utilization of fund already
disbursed together with the margin money brought in by the borrower,
by obtaining physical progress report from the engineer and upon vetting the
same by Banks empaneled valuer/Bank’s officer as per guidelines.
2. For purchase of Flats under construction:
 Loan component shall be released in stages in accordance with completion
of work progress as laid down in construction agreement. Each release
shall be backed by written request by the borrower & demand made by
the builder/ developer with Architect Certificate. Cash payment
accounted for shall be evidenced by documentary proof such as cash receipt
or delivery challan etc., provided the sanctioning/ disbursing authority is
convinced of it and records the same in the note.
3. Expansion of pre-owned residential house & renovation of existing pre-
owned house/flat:
 Procedures as per point 1 shall be adhered to for the disbursement of
construction loan component.
4. Purchase of ready built house/flat:

 Entire loan proceeds together with borrower’s margin to the extent as
committed and as stipulated in the sanction terms shall be directly
remitted by way of Account Payee Demand Draft/RTGS in favor of seller,
duly incorporating the banker’s name & account number
 Such DD shall be handed over directly by the bank officials to the seller
against specific written request by the borrower simultaneously with
registration of the property in the Sub Registrar’s officer. In other words,
bank representative has to be present in the Sub Registrar’s office to hand
over the loan proceeds directly to the seller to the credit of his bank
account only, on ensuring that the property title has been simultaneously
registered in favor of the buyer/ our borrower.
 Agreement in this regard by both buyer & seller shall be obtained
 As there is likely to be few days delay in receipt of title deed a specific
letter of authority by the borrower (Format available at LoanDocs-HLS
D13) duly authorizing the Sub Registrar to directly deliver the title deeds
to the representative of our bank shall be obtained & the copy of the same
shall be handed over to Sub Registrar against acknowledgement.
 Acknowledgement receipt issued by Sub Registrar evidencing registration
of property may also be collected by the bank official present thereon,
simultaneously upon registration of property.
Page 19 of 159
 Bank officials shall collect the original title deed of property documents
directly from sub registrar’s office on the date committed by Sub Registrar
Office – for depositing the same with the bank along with the other Lon
Document
 Mortgage charge on the property shall be registered on the date of release
of loan on the line suggested by panel advocate in the legal opinion. In
case of inability to create mortgage, power of attorney to create mortgage
should be obtained
5. Takeover of existing housing loans:
 Housing Loan proceeds equivalent to the entire outstanding in the
Housing Loan of the borrower with the existing lender, shall be remitted
directly to that bank by way of DD/ RTGS, against full & final settlement
of the dues. No due certificate from the existing lender shall be obtained
simultaneously.
 Property documents based on the letter issued by the existing banker
shall be directly collected for creation of mortgage charge in our favor.
6. Purchase of residential site and construction thereon:
 Procedures as per point 4 shall be adhered to for the disbursement of site
loan component
7. Purchase of residential site from Statutory Bodies and subsequent
construction of residential building:
 Entire loan proceed together with the borrower’s margin to the extent as
committed and as stipulated in the sanction terms shall be directly
remitted by way of Account Payee DD in favor of the Statutory Authorities
and acknowledgement for the same be obtained and held on record
Note: As a part of due diligence, Seller’s Bank account in which
proceed/disbursement will be made, has to be verified for genuineness.
Similarly in case of under construction Builder’s project registered with
RERA, then Amount has to be disbursed in Escrow Account as mentioned
in RERA site. Avoid remitting the amount to the account of Seller / Builder
maintaining in Co-operative Bank until Genuinity is verified.
20 Security 1. For purchase / construction of residential house:
 Mortgage charge on the residential land and residential house already
constructed or to be constructed thereon.
2. For purchase of ready built flat or flat under construction:
 Mortgage charge on the undivided share of land and residential flat built/to
be built thereon out of the loan proceeds (subject to bye-laws and
conditions put forth by the Housing Societies/Flat Owners Association).
Note: Interest on the property shall be initially created by deposit of original title
deed of Agreement to Sell and other related documents duly executed by the
owner/Builder of the property in favor of the borrower as opined by the
empaneled Advocate of the Bank with subsequent registration of charge on the
undivided share as aforesaid.
3. Expansion, renovation, repairs, improvement of pre-owned residential
house:
Page 20 of 159
 Mortgage charge on the residential land & house built thereon and the
expansion, improvement renovation to be carried out thereon.
4. For purchase of residential site and construction thereon:
 Mortgage charge on the residential site and residential building to be
constructed thereon.
5. Takeover of Housing Loan:
 As at (1) or (2) as the case may be.
21 Mode of Creation  Effective and enforceable mortgage charge on the property shall be
of Mortgage created as per the advice of panel advocate as specified in the legal
Charge opinion
 All the supplementary documents, record, letters, affidavits etc., as
suggested by the advocate for preferring the charge shall have to be
obtained
 Memorandum of Deposit of Title Deed shall have to be registered in such
of those states where the system is in vogue. All the charges in this regard
shall be borne by the borrowers.
 Mortgage charge and the relative title deeds, documents etc., obtained
and deposited for creation of such charge should be subjected to Legal
Audit at the post disbursal stage.
 A separate mortgage register has to be maintained by branches for
creation/ deletion of Equitable/ Registered Mortgages with a
proforma as specified in Annexure.
All the expenses regard to creation of mortgage charge, Legal Opinion,
Documentation, Search in the records of Sub Registrar’s Office, EC and such
other measures as may be considered necessary by the bank shall be borne by
the borrowers. A specific undertaking is to be obtained from the borrowers in this
regard.
General Instructions for obtaining Mortgages:

1. All the details of the property to be mortgaged should be collected prior to
execution of mortgage.
2. Obtain detailed Title search report up to 30 years from the Advocate on
Panel to ascertain that the Mortgagor has the mortgagable right, title and
interest in the property, and the property is free from the encumbrances,
marketable and enforceable. The title search report should state how the
title is derived and also include the report of the searches taken in the office
of the concerned Sub-registrar.
3. All the title deeds including the document of antecedent title should be
obtained and kept on Branch record.
4. Certified copy of the title deeds of last transactions up to 30 years should
be obtained and kept on Branch record. Examine the Search and Title
report as to whether there is any adverse or qualifying remarks or any
further documents or compliances is required. Consult Law Officer of the
Zone of necessary.
5. Branch should visit the property to be mortgaged and to ensure that the
property is in possession of the mortgagor (other than loans granted for
purchase of Flats under construction). Further, proof of possession of the
property be obtained, scrutinized and kept on record viz., the latest tax paid
receipts in respect of payment of municipal taxes, land revenue, electricity
bill etc. it should also be scrutinized to see that there are no charge / arrears
on the said property.
Page 21 of 159
6. Wherever required, prior consent be obtained from the appropriate
authorities and persons, Societies or Developers/Builders.
7. In case the documents are being executed by the attorney by the Power of
Attorney (POA), the POA should be carefully examined to ascertain that
the same contains specific powers to create charge, deposit title deeds and
execute the documents. The POA should be construed in the strict sense.
It should be ensured that POA is duly registered and is not revoked.
8. In case of mortgage of properties of body corporates, such as Companies,
Co-operative Societies, Corporations, Trusts, Associations, necessary
resolutions authorizing creation of charge on their property and authorizing
the Directors/Office bearers to create charge, execute the documents
should be obtained and affix common seal wherever required.
9. Where mortgagor/s authorize/s one of them or any other person as the
case may be, to create the mortgage, original power of attorney granted in
favor of such person should be held on record.
Creation of Registered Mortgage (Simple Mortgage):
1. There are three forms of standard composite documents of mortgage: (a)
mortgage of property of borrower, (b) mortgage of property of both
borrower and guarantor, (c) mortgage of property of guarantor. The
appropriate form should be used.
2. The stamp duty as applicable should be ascertained and affixed before or
at the time of execution of the mortgage.
3. The details of property be properly filled up in all respects and got executed
by the mortgagor. It should be attested by the two witnesses. At least
one of the witness should be from Bank. Name and address of the witness
should be written under their signatures.
4. The simple mortgage is required to be registered with the Sub-Registrar of
Assurance in whose jurisdiction the property is situated. In some states,
the duly registered document is returned by the Registering authority
immediately or on the next date. The duly registered document should be
obtained and kept on record. If the registered document is not being
returned immediately, the document as and when registered be made
returnable to the Bank directly. The original registration receipt along with
a duly signed copy of the mortgage deed be kept on record and follow-up
should be made to ensure receipt of original mortgage deed by the bank.
5. Even in cases of Registered Mortgage, it is necessary that the original title
deeds are taken in the custody of the Bank against due acknowledgment
and kept well protected and secured along with the mortgage deed. If the
original title deeds are not available or are lost/destroyed, an affidavit in this
regard be obtained in the prescribed formats i.e., MG-11 available in ULC
(BOMNET > Useful Links > Document for other Credit facilities at sl.no.
New 51)
6. Ensure Bank’s charge through mortgage reflects in the revenue records,
wherever possible.
Creation of Equitable Mortgage:
1. For creating charge of Equitable Mortgage, it is necessary that the original
title deed/s relating to the property to be mortgaged are delivered at Notified
Place by the Mortgagor (Owner) to the bank with intention to create security
thereon. To clarify the same, it is not necessary that the property also
should be situated at notified town.
2. Wherever the property is transacted by single person/owner to another
single person in last 30 years, all original chain/link deeds be obtained. If
there were more than one owner/more than one purchaser of a property or
Page 22 of 159
more than one purchaser of a property such as in case of flat built on a
property purchased through single title deed, certified copy of the chain
deed/s be obtained and kept on record.
3. Though as per judgement of Madras High Court in the case of M/s Ride
Master Rims Private Ltd vs. ING Vysya Bank Ltd Chennai, AIR 2007
Madras 34, an Equitable Mortgages may be created on the basis of photo
copy/ies of the title deed/s. However the Branch should insist for deposit of
original title deeds i.e. original Sale deed, Gift deed, Partition deed etc. and
should not accept the Xerox copies/certified copies of the title deeds.
4. The existing procedure for creation of Equitable Mortgage, viz. 1.
Declaration by the Mortgagor, 2. Deposit of Title Deeds by the Mortgagor
with the Bank official at notified place, 3. Recording of Memorandum by the
Bank official and 4. Execution of letter of confirmation by the Mortgagor
shall continue.
5. Separate forms of Memorandum are available for mortgage by borrower
himself, mortgage by guarantor and mortgage by borrower and guarantor
jointly. This should be executed on proper stamp duty as applicable in the
state where the property is situated.
6. The following chronology of events for creation of Equitable Mortgage
should be ensured:
 The Mortgagor’s declaration to be executed before Notary. The
same may be at any place before Notary.
 On a day subsequent to the date of declaration, Mortgagor should
Deposit the Title Deeds at notified place.
 On a day subsequent to the date of deposit of title deeds by the
Mortgagor, the Memorandum of deposit of title deeds to be
recorded by the official of the Bank accepting the title deeds.
 On a day subsequent to recording of memorandum, the Mortgagee
should execute and deliver the Letter of confirmation.
7. In case mortgage is to be created by branch/es which is not in Notified
Town, the deposit of title deeds will have to be through a branch in Notified
Town. In such cases, it would be necessary for the lending branch to seek
cooperation of a branch at Notified Town for accepting deposit of title deeds
and recording necessary memorandum.
8. The procedure for creation of mortgage / recording of memorandum for the
branches not situated in Notified Town should be as follows:
 After getting the mortgagor’s declaration executed before Notary,
the lending branch should send a letter of request cum authorization
to the Branch situated in a notified town for recording of
memorandum.
 The requesting/lending branch should provide all the details and
duly approved and stamped Memorandum to the branch recording
the memorandum
 The Mortgagor along with representative of lending/ requesting
branch and with prior appointment of branch in notified town should
attend the branch at notified place and deliver the title deeds.
 The branch accepting the title deeds would record memorandum,
the representative of requesting/lending branch would sign as
witness.
Page 23 of 159
 The original memorandum and all the title deeds should be returned
to the requesting/ lending branch, who would acknowledge receipt
of the same and keep in the custody.
 Subsequent to recording of memorandum, the mortgagee should
execute and deliver the Letter of Confirmation to the lending
branch
Steps to be taken after Mortgage:
1. Register of mortgages be kept in ordinary course of business, where all the
mortgages are recorded in chronological order. The mortgage register
format and movement of title deeds are available as an annexure.(No. 8)
2. The mortgage documents and title deeds should be kept properly secured
under lock and key
3. The charge must be registered with CERSAI within the stipulated period
and the asset id / security interest id be noted in the mortgage register
4. Copy of extract with Bank’s charge should be kept on record. In cases of
ownership of flats, if the flats owner’s name does not appear on the property
register card and hence charge cannot be noted, then the charge should
be noted with the Cooperative Housing Society and/or the
Developer/Builder.
5. Verification of security documents in respect of each borrower enjoying
credit facilities of Rs.50.00 lakhs and above is to be done by the law
officer/advocate on panel.
6. As and when the title deeds become returnable, care should be taken to
ensure that the same are returned to proper person entitled to receive it.
Return of title deeds should be noted in register and an acknowledgement
in writing should be obtained from the receiver of the title deeds.
22 Pre-disbursement Pre-sanction compliances shall be carried out on the following aspects:
Compliances 1. Pre-sanction visit report has to be taken invariably for all accounts. Confirm
the market valuation by market enquiries.
2. CERSAI check has to be taken before sanctioning of the loan. Any charge
found persisting (other than takeover / resale of properties in which seller
availed loan), the same has to be satisfied by the concerned FIs.
3. Pre-disbursement compliances as per Credit Monitoring Dept. Circular
AX1/CrMon/Cir.58/2018-19 dated 21.01.2019 has to be complied strictly.
4. Legal vetting of loan documents has to be done by the Panel Advocate for
Loan amounting to Rss.50.00 Lakhs and above.
23 Post sanction Post disbursal supervision & follow up of Housing Loan accounts shall be carried
supervision & out by the credit originating & disbursing branch. Following are the critical aspects
follow-up of post sanction monitoring & supervision process:
 Memorandum of Deposit of Title Deeds shall have to be got registered with
Sub Registrar’s Office in respect of all accounts.
 Fresh EC shall have to be obtained after registration of memorandum and
our charge should be verified.
 Post disbursal inspection of construction work progress in case of loans for
construction of flat/house at the time of each stage of loan release.
 Copies of visit/inspection reports of the designated branch officials,
together with work progress report & final completion report by the
empaneled engineer shall be held on record as per specified proforma.
 Work progress details at the time of each stage of release shall be held on
record. Stage wise loan disbursal shall be against written request by the
borrowers.
Page 24 of 159
 Along with the completion certificate, valuer/engineer shall also
furnish to the bank final valuation report covering the value of the
property on completion of construction work. Photographs of the
completed building/flats shall also be held on record.
 Occupancy certificate issued by Statutory Authorities, Housing Society &
such other competent authorities shall be held on record.
 The house shall be inspected on completion of the house after
receipt of completion certificate from the panel valuer/engineer and
thereafter as below:
Amount of Loan including Visit by and Periodicity
existing facility if any
Below Rs.1.00 cr Branch officials half yearly
Rs.1.00 cr to Rs.5.00 cr Branch officials quarterly
Above Rs.5.00 cr Branch officials quarterly and
ZO officials half yearly
 Cover the property with all risk insurance with Bank’s clause at borrower’s
cost.
 EMI shall have to be reset in line with each revision in interest rate structure
in respect of floating rate Housing Loan. Borrower shall be simultaneously
intimated in this regard through any mode of communication in writing or
through electronic media & revised EMI shall have to be factored in CBS
system.
 All periodical expenses & charges debited to the loan account, if any, shall
have to be recovered from operative account of the borrower forthwith.
 Balance & Security Confirmation (B2 & G2) which includes
acknowledgement of securities to be obtained once in 3 years and
Acknowledgement of Mortgage once in 12 years from borrowers, co-
borrowers & mortgager as the case may be.
 Sanction of more than 2 housing Loans (for different properties) for
residential purpose to a single borrower shall not be covered under
Housing Loan Scheme and will attract Commercial Rate of Interest as per
defined under CRE policy. The broad guidelines are mentioned ahead.
24 Insurance  All the residential houses/flats being financed shall have to be covered by
coverage of insurance of all risks, with bank’s clause thereon, at the cost of the borrower.
Housing Property Insurance premium debited to the housing loan account initially, shall have
to be recovered from the borrower separately.
 In certain cases, Housing Societies/Flat Owner’s Association might have
covered the insurance of the entire building. In such cases, branches may
not insist from borrower, a separate insurance cover against such
properties, but would be required to hold the insurance details in their
records.
25 Processing Fee & Processing Fee – 0.25% of sanctioned amount excluding GST (Min Rs.1000/- &
Other Charges Max Rs.25000/-)
Documentation charges– 0.10% of sanctioned amount excluding GST (Max

Rs.10000/-)
Inspection / Supervision charges – Nil
Full waiver of Processing Fee for Govt. /State /Central Government / Public
sector Employees in case of Takeover Loans
Page 25 of 159
26 Prepayment No prepayment charges on floating rate housing loans.
Charges
However in case of Housing loan for Purchase of Plot and Construction thereon,
Prepayment penalty @ 1% of the outstanding balance at the time of closure
should be charged / recovered if repaid within 2 years
27 Waiver of EMIs Waiver of last 2 EMIs to Housing Loan borrowers having regular repayment of 20
years and above (for sanctions on or after 19.12.2017)
28 Credit Scoring The evaluation / appraisal of retail loan applications will be made mandatory
Model through Credit Score Model in all Branches. Therefore no retail proposals
except in exempted category (LAD, Loan against Security Papers, Gold Loan
& Aadhar Loan) is to be sanctioned without the application of these model. The
credit scoring model for Housing loan is attached in Annexure I & for Top-up
loan and Repair & Renovation loan is attached in Annexure II.
29 Product code &
Activity Code Housing Loan Product codes
S. No Product code Description
1. 6612 3251 HSG LN-FARMERS-MCLR
2. 6612 3394 HSG MAHACOMBO NP U&METRO
3. 6612 3398 HSG MAHACOMBO NONPRIO-R
4. 6612 3396 HSG MAHACOMBO NONPR-SEMIU
5. 6612 3397 HSG MAHACOMBO PRIO- RURAL
6. 6612 3395 HSG MAHACOMBO PRIO-SEMI
7. 6612 3393 HSG MAHACOMBO PRI-U&METRO
8. 6612 3407 HSG MAHASUP NON-PR U&MET
9. 6612 3411 HSG MAHASUP NONPRIO-RU
10. 6612 3409 HSG MAHASUP NONPR-SEMI-U
11. 6612 3410 HSG MAHASUP PRIO- RURAL
12. 6612 3408 HSG MAHASUP PRIO-SEMI U
13. 6612 3406 HSG MAHASUP PRI-U&METRO
14. 6612 3384 HSG-MAHASUP-REP-SU&RU-NP
15. 6612 3383 HSG-MAHASUP-REP-SU&RU-PRI
16. 6612 3386 HSG-MAHASUP-REP-U&MET-NP
17. 6612 3385 HSG-MAHASUP-REP-U&MET-PRI
18. 6612 3405 PLOT&HSG MAHASUP NP-RU
19. 6612 3403 PLOT&HSG MAHASUP NP-SU
20. 6612 3401 PLOT&HSG MAHASUP NP-U&M
21. 6612 3404 PLOT&HSG MAHASUP PRI-RU
22. 6612 3402 PLOT&HSG MAHASUP PRI-SU
23. 6612 3400 PLOT&HSG MAHASUP PRI-U&M
24. 6612 3428 RLLR Housing Loan
25. 6612 3426 CRE Housing Loan
Activity Code
Activity code Purpose
61001 FOR PURCHASE OF PLOT- HSG DIRCET
61002 FOR CONSTRUCTION OF HOUSE- HSG DIRCET
61003 FOR PURCHASE OF HOUSE/ FLAT/ APARTMENT ETC- HSG
DIRCET
61005 FOR RENOVATION/EXTENSION OF HOUSE - HSG DIRCET
61006 FOR PURCHASE OF OLD DWELLING UNITS - HSG DIRCET
61007 FOR REPAIRING OF OLD DWELLING UNITS - HSG DIRCET
Page 26 of 159
61008 FOR MAINTENCE & REPAIRING OF OTHER ITEMS- HSG
DIRCET
61009 FOR HOUSING LOAN TO FARMERS -- HSG DIRCET
30 Takeover of Loan Eligibility Criteria for loan takeover facility
Guidelines
 Borrowers who want to avail this loan takeover facility should meet the basic
eligibility criteria for availing home loans as per above guidelines.
 The borrower must have paid interest and installments of the existing loan
regularly as per the existing bank’s terms and minimum satisfactory
repayment period for last 12 months is available.
 The borrower must have all valid and relevant documents evidencing the title
to the house/flat.
 Minimum Cut off CIBIL score 700 (No consideration below the mentioned
score)
 Moratorium Period must have been completed with existing lender
 Satisfactory Repayment behavior of the Borrower (NO EMI default in last 12
months)
Note: Loan request for Non-Salaried Self-Employed Professionals,

Businessman shall be considered by Zonal Manager’s committee
Tenor:
 Home Loan – Maximum - 360 Months

 TOP up Loan- Maximum 180 Months or Residual period of Existing Top up
Loan.
Maximum repayment period may be allowed up to the remaining (after deducting
the enjoyed tenure with the existing bank) of the maximum permissible repayment
period as prescribed under the “Maha Super Housing Loan scheme.
Important guidelines
1. Takeover of home loans from other Banks/FIs

CPCs/Branches may entertain proposals of takeover of Home Loans outstanding
with Scheduled Commercial Banks (SCBs) including Private and Foreign
Banks/FIs/ Housing Finance Companies (HFCs) registered with National Housing
Bank (NHB)/Borrower’s employers if they are Central/State Govt. or their
undertakings or Public Sector Undertakings, subject to the following:
a) Due diligence should be carried out on the borrower and the seller (e.g. builder).
They should satisfy the eligibility criteria for availing Home Loan as per the extant
instructions of the Bank.
b) The borrower should have serviced interest and/or instalment of the existing
loan regularly, as per the original terms of sanction.
c) The borrower has valid documents evidencing the title to the house/flat
2. Permissible quantum of Finance for takeover will be lowest of the

following
Page 27 of 159
a) MPBF as per the LTV ratio stipulated by the Reserve Bank of India is as
under:
For ready to move/completed properties, LTV ratio will be calculated on Market
value as per the latest valuation report (If the Project is approved by our bank then
valuation is not required, we can take Registered Value as value of Property. In
case of Flats / Houses if the existing bank has taken valuation from our approved
valuer then a link letter certifying the market value of the property from the same
valuer is sufficient and valid to get the present market value of LTV purpose).
S.N Nature of Takeover Maximum permissible LTV Ratio

A Takeover of only Home Loan with 75%
automatic waiver of Interim
Security/Third Party Guarantee
(TPG) in eligible cases
B Takeover of Home loan where 75%
takeover of top up loan is also
involved
C Purchase of Plot and Construction Plot – 70%
thereon For Construction of House –
(Overall project cost including value
of the Plot should be taken for LTV,
ensuring separate margin for plot)
as mentioned in (D)
D All other Home Loan Takeovers
(a) For Loan limit up to Rs.30 lacs 90%
(b) For Loan limit above Rs.30 lacs 80%
and up to Rs.75 lacs
(c) For Loan limit above Rs.75 lacs 75%
The existing Loan details to be verified by Credit Information Report (CIRs)
and there should not be any overdue.
b) Take over with sanction of Higher Loan Amount & extended Repayment
period:
At the time of the takeover, the sanctioning authority, based on the merits of
the case and requirements/ eligibility of the borrower, may sanction an amount
higher than the amount taken over from other bank/ financial institution for
purposes of renovation/ extension/ furnishings. Similarly the sanctioning
authority may also extend the repayment period beyond the period sanctioned
by the other bank/ financial institution provided that at all times the criteria
regarding maximum permissible finance and security margin under the Bank's
scheme are not diluted.
c) Procedures for Take Over
 The Prospective borrower should address a letter, as per specimen vide
Annexure/HLT-I to the bank/ financial institution from whom he has availed
the loan asking them to deliver, immediately upon receipt of the loan
amount, the title deeds and other securities, if any, direct to our lending
branch. CPCs/Branches will not insist on obtention of acknowledgement
from the existing Bank on our standard format HLT-Request- I if, the copy
of arrangement letter, certificate issued by the existing Bank/HFC listing
the details of Security documents deposited by the borrower, statement of
Page 28 of 159
account for the last six months are available as these documents provide
all necessary information required for Takeover of Home Loan accounts.
 The borrower should give to the branch a request letter as per specimen
vide Annexure/ HLT-II for paying to his existing lending bank / financial
institution the outstanding amount of his loan by debit to his loan account.
The branch/CPC is required to receive the following documents to process
the takeover loan proposal:
 copy of arrangement letter (Sanction Letter)
 certificate issued by the existing Bank/HFC listing the details of
Security documents deposited by the borrower
 Statement of account for the last twelve /Six months with outstanding
Loan amount.
 Foreclosure letter from existing lender will be obtained after execution of
loan documents and before disbursement of loan. Also, the loan amount
may be determined on the basis of current outstanding balance reflecting
in the Home Loan Statement of account, plus interest chargeable till the
expected date of closure of the account with the current lender.
 Disbursal must be effected only subject to the above information being
found satisfactory and completion of formalities as regards (a) obtaining
Agreement to create Mortgage, (b) execution of Power of Attorney, (c)
obtaining interim security and (d) execution of the required loan documents.
 In case of takeover loans from other banks/financial institutions, if the
original title documents are not available for scrutiny/verification by the
advocate branches may obtain an interim certificate as per Annexure (HLT-
VI) .However, in all such cases, after takeover of the loan is completed and
original title documents are received from such other Banks/ Financial
Institutions, Advocate has to complete the scrutiny/verification of original
title documents and to submit the certificate of title as per our bank’s
Proforma.
d) Security in the interim period:
Takeover of residential units where construction of the underlying property
is complete, possession is taken and mortgage process is complete
 While ‘Taking over’ Home Loans given by other Banks/ HFCs/FIs, Interim
Security/ Third Party Guarantee (TPG) should not be insisted upon
from the applicants in the following cases viz, where the construction of the
underlying property is completed and the applicant has taken possession
of the property. For this purpose the applicant should produce satisfactory
documentary evidence (such as a Letter/ Advice/Receipt issued by the
present lender either at the time of deposit of title deeds or later) indicating
the deposit of original title deeds as security for Home Loan.
 The waiver of Interim Security/TPG would be available to the aforesaid
Takeovers, subject to compliance of the undernoted stipulations:-
(i) The Home Loan account (proposed to be taken over) should have
satisfactory track record from the date of first disbursement and the
account should be `Standard’ as per IRAC norms.
(ii) The Loan to Value (LTV) should not exceed 75%.
Page 29 of 159
(iii) A Letter of Undertaking, containing the necessary terms, should be
obtained from the applicant for Takeover of the Home Loan on the
format enclosed at HLT-III.
 The Branches/CPCs will ensure that disbursement of the Loan Taken-over
is made directly to the transferor Bank/ HFC/FI by way of RTGS/NEFT with
specific instructions to appropriate the amount towards closure of the Home
Loan Account proposed for Takeover.
 In all such cases, the original title deeds should be obtained directly from
the transferor Bank/HFC/FI within the shortest possible time and the
Equitable Mortgage formalities should be completed within 30 days of
disbursement of the loan.
e) Nature of security during interim period for takeover:
 During the interim period between granting of loan and creation of equitable
mortgage on the house/ flat being financed, some security including third
party guarantee may be taken, wherever considered necessary(other than
cases mentioned in para d above. However the kind of security, where
taken, should be flexible depending on the status and integrity of the
borrower and it need not be related to the loan amount. The security
obtained in the interim period should be released after receipt of the title
deeds and creation of a valid equitable mortgage subsequent to verification
of the borrower's title to the property. (Ref. Lending policy dated
02.06.2018, Page No.11-12 under Collateral Management, Type of
Security)
f) The disbursement of the loan should be made direct to the institution as per
the specimen vide Annexure/ HLT-IV, stipulating that the amount should be
appropriated towards the said outstanding loan only and the title deeds and
other securities, etc. should be delivered to an authorized representative of
the Bank only.
g) On receipt of the title deeds, etc., the bank must apprise to the borrower, in
writing, the details of the documents/ securities received from the other bank/
financial institution in order to avoid any legal complication later on in case
some of the documents/ securities are not received from borrower's earlier
financer.
h) There is no prepayment charge in respect of floating ROI loans as per RBI
guidelines However, in case of fixed ROI Prepayment Penalty charge of 2%
of outstanding amount will apply.
i) Takeover of Top-up Loans
 Outstanding in the Top-Up Loan (for other purpose) already availed in
earlier financial institutions should be taken only under our “Top-up Loan
scheme” for other purpose only simultaneously with the Takeover of
Home Loan, subject to a maximum permissible LTV Ratio of 75% and
compliance to the norms stipulated under our Top-up Loan Scheme.
 Takeover of Home Loans along with the Top-up Loans is permitted from
the present lenders, subject to compliance of the undernoted stipulations:
i) Both the Home Loan and Top-up Loan account should be
regular and ‘Standard’ since inception or for the last two years,
whichever is earlier, in the books of the present lenders.
ii) The possession of the residential property should have been
taken by the borrower and a valid mortgage should have been
created in favor of the present lender. (Takeover of Top-up loan
is not permitted for properties under construction).
Page 30 of 159
iii) Only the loan outstanding with the present lender should be
taken over and no cash disbursement or reimbursement of the
investment made by the borrower should be permitted under
any circumstances.
31 NRI Guidelines Documents required:
 G P A in Bank of Maharashtra format (Format Enclosed) (GPA holder has
to be a blood relation). – Notarized Copy
 Copy of Passport & Valid Visa (all pages). – Notarized Copy
 Overseas Resident address proof (telephone bill / rent agreement). –
Notarized Copy
 Salary Slip of last six months.
 Bank Statement/Pass book (where salary is credited) for last six months.
 Latest Employment Letter / Contract renewal letter.
 If on a deputation copy of the deputation letter.
 Official Mail ID from the employer.
 Mail ID of the HR Head / Dept.
 Existing Loan Repayment Track record
 Earlier company appointment & relieving letter (continuity for last 2 years).
 Company Profile.
 Qualification Proof.
 GPA Holders ID, Address, Date of Birth & Signature proof (India).
 NRE/NRO Bank Statement/Pass book for last six months. (India).
NOTE:
 Spouse to become a compulsory Co-applicant.
 In case of Bachelor – Parent to become Co-applicant (GPA as well as co-
applicant).
 All Documents as above have to be in English. If in any other language
certified translated copy of all the above has to be provided.
 All documents other than the ones marked as Notarized copy can be net
downloaded / e-mailed. The Notarized copies have to be sent in Originals.
 Preferably Project has to be approved by Bank of Maharashtra / or under
approved plan by appropriate authority.
 Maximum Tenure: As per Scheme specific.
 Maximum Funding 85%, 80% & 75% as per LTV norms for house/flats (on
loan amount) & 70% for Plot loans.
 Self-attestation on all documents either by Applicant or GPA holder is a
must.
 The Processing Fees cheque and the subsequent cheques have to be
from an account of NRE/NRO only.
 The 6 months NRE Bank statement required is for an active account with
regular transaction in the same.
 The Bank statement has to be for the same account from which the
cheque is being issued.
Post Sanction Requirements
Page 31 of 159
• Loan Documents and accepted Sanction Letter singed (by the GPA
Holder)
• 24 + 1 Post Dated Cheques (from NRE/NRO account as repayment is
permitted only from these account)
• Margin Money proof
• All original Property Documents.
• All Sanction conditions to be fulfilled.
• All the copies of the documents should be self-signed either by applicant
or by GPA Holder
Further the following points are to be followed in this respect:
1) The documents are to be executed in the name of the NRI applicant and
signed by the attorney as attorney of the applicant.
2) The maximum amount up to which the attorney can avail the loan from Bank
in the name of the applicant is to be mentioned in the POA.
3) Upon receipt of the offer from the attorney to avail the housing loan in the
name of the NRI applicant,
Correspondence is to be made directly by Branch to the applicant about the
offer and the applicant has to confirm by correspondence directly to Bank that
the POA executed by him in favor of Attorney is still in vogue and that the loan
is being availed with his consent only and that he shall be responsible to repay
the dues.
4) After disbursal of loan again correspondence is to be made by branch to
applicant about execution of documents and the disbursal of loan.
5) While disbursing the loan, the identity of the Attorney is to be confirmed
thoroughly.
6) Amount to be disbursed as per the terms of sanction
7) Copy of Passport of applicant is to be kept on record of branch.
8) Obtain a confirmation/undertaking from NRI after disbursement during his/her
visit to India as confirmation of debt/obligation.
32 CRE Guidelines RBI Guidelines on Exposures which should be classified as CRE.
Loans for multiple houses intended to be rented out

The housing loans extended in cases where houses are rented out need to be
treated differently. As per Basel II Framework, loans secured by a single or small
number of condominium or co-operative residential housing units in a single
building or complex also fall within the scope of the residential mortgage category.
RBI has set limits on the maximum number of housing units up to 2. Therefore,
such loans need not necessarily be classified as CRE Exposures. However, if the
total number of such units is more than two, the exposure for the third unit onwards
may be treated as CRE Exposure as the borrower may be renting these housing
units and the rental income would be the primary source of repayment.
Note:
 The number of housing units for which loan availed by the applicant can
be found/verified from CIC reports. It is to be ensured that the property
should be different. If it is third property for which the applicant applying
Page 32 of 159
Housing loan, then it should be treated as CRE and the commercial ROI
should be applied which is as mentioned in Point 14/15 (ROI).
 The CRE Housing Loan should be opened under the mentioned product
code only.
 Maximum no. of CRE Housing loans can be availed at a time is 2.
 LTV Ratio to be maintained for CRE Exposure should be less than 75%
irrespective of the loan amount.
Please Note:
1. No surrogate funding to builders under the product in any case has to
be entertained.
2. The disbursement has to be done on the basis of progress in
construction stage and end use verification in stage manners.
33 Valuation & Rates are Exclusive of GST
Lawyer’s Fees Sl.No Job Works Fees (Exclusive of GST)
1 Search Report (in all cases) 2000+Actual Expenses
2 Supplementary Search (for any 1500 consolidated
individual or approved projects)
irrespective of TOP Up for existing
customer or any other case
3 Project Search Report 3000 + Actual Expenses (in case
it has more gats or survey number
and Zonal Managers feel the
genuineness then they can agree
maximum up to Rs.5000/- as fees
apart from actual expenses
4 Project Valuation 4000 consolidated
5 Supplementary valuation for 900 consolidated
approved project
6 Valuation of Property 2500 consolidated
34 Charges for Due Charges for additional due diligence agencies:

diligence Cost in INR (per Verification)
Sr.No Verification activity
Agencies City Limit Outside City
Limit
1 Residence Address Verification 90 125
2 Business Address Verification 90 125
3 Business Phone Verification 18 18
4 Residence Phone Verification 18 18
5 Verification of Income such as Salary 100 100
slips, Form16, ITR etc.
6 Bank Statement Verification 50 50
7 Employee / Employer’s/ Business Activity 100 100
*The above charges may vary depending upon the agreement executed by the
Zones after approval from HO.
Page 33 of 159
35 DSA’s Commission for DSAs:
Commission Ticket Size Remuneration Payable
Up to Rs.50.00 Lakh 0.35%
Above Rs.50.00 Lakh 0.45%
Remuneration based on business mobilization during contract period:

Business Mobilized Remuneration based on
(Actual Sanctions) loan amount sanctioned
Above Rs.50.00 Crore & up to Rs.100 Crore 0.40%
Above Rs.1000 Crore 1.00%
36 Role & Advocates:
responsibilities of  Advocate/Lawyers shall be solely responsible for legal scrutiny of title deed
Service Providers of properties in original, offers as security to the bank. On scrutiny of the
same, the advocate shall furnish to the bank an unambiguous opinion as to
the genuineness of those title deeds, ad also availability or otherwise of
valid, enforceable & marketable title to owner over the relative property.
 Advocate shall verify title deed/property documents in original as also such
other documents which together, confer on the concerned owner, valid &
enforceable marketable title on the property
 Opinion shall be furnished in the prescribed format & shall essentially
incorporate the following aspects, based on the compliance of which he has
extended his considered opinion to the bank as to the acceptability or
otherwise of the property as a valid & enforceable security
o Verification of title deeds in original
o Verification of Mother Deed in respect of multi-unit residential flats
o Verification of link documents covering the previous ownership for
scrutiny & evaluation of flow of title to different owners over the period.
o Verification of EC covering mandatory minimum period (including
broken period, if any) to verify the subsisting charge if any
o Verify & compare the Sale Deed/property documents offered as
security, with that of the one held in the records of Sub Registrar’s Office
by conducting search. With such comparison, acceptance of fake
documents can be minimized at the presanction stage itself
Valuers/ Engineers:
 Valuers/Engineers shall have the dual responsibilities, covering not only the
identification of the relative property & evaluation of its fair market value of
the same at pre-sanction stage, but also monitoring to house construction
progress until completion of the same for creation of corresponding asset as
envisaged.
 Valuers shall furnish to the bank a report covering location supported by
geographical ketch of route map of the same, it identification, present fair
market value & the extent of deviation occurred – in case of preexisted
structures – in the specified format. In other words, he should clearly spell
out acceptability or otherwise of the property in question as security for the
bank.
Page 34 of 159
Builder/Seller/Dealer due diligence:
 The bank should conduct proper seller/builder/dealer due diligence.
 Obtain self-attested KYC and Bank statement of the dealer/builder/seller
(as the case may be).
 Match the signature from previous sale deed as a buyer & existing
agreement as seller.
Due Diligence verification Agencies:
 Agency shall be responsible of various documents & certificate as
furnished by the applicant for their veracity & genuineness
 Main documents which needs such verification are – ITRs, Income Proof,
Salary Certificate, Employment status, Previous employment details in
case the applicant has recently joined the organization, building plan
approval copies, verification of residence, enquiries in the neighborhood,
details of business/services in case of applicant engaged in business,
verification through telephone numbers furnished, and such other details
as furnished by him for arriving at a fair decision
In view of availability of services from various professionals such as advocates,
valuers & engineers and due diligence verification agencies, the branch shall be
in a position to focus its attention to marketing & sourcing of retail products
particularly Housing Loan as their role shall be mainly confined to credit origination
& its delivery, compliance of KYC norms as per RBI guidelines & applicant
identification and compliance of credit due diligence process.
37 Roles &  Branches has to generate Leads from existing customers and pass on the
Responsibilities leads to Marketing officials.
of CPC-R  Marketing person should collect the documents, obtain Legal Search &
(Mapped Valuation report and ensure submission of proposals to the processing
Branches) team. Maximum TAT for the above process is 3 days.
 The processing team in CPC-R shall be responsible for handling
proposals relating to retail products received from branches falling under
jurisdiction for expeditious sanction of the same based on merits in
compliance with relative scheme guidelines in force.
 The TAT for processing of the proposals is 48 Hours.
 Sanctions to be communicated to the branch, concern marketing person
and the customers immediately. There should not be any unwanted
clause for disbursement.
 Pre sanction visit has to be made by Field visit officials posted at CPC-R
as a part of Key responsibility areas, Post sanction visit will be the
responsibility of the branch on 1st disbursement. During subsequent
disbursement branch officials should visit the site and disburse the loan
accordingly.
Marketing person should assist the customer till final disbursement and make
good liaison to get other business.
38 Roles & Applicant due diligence – covering compliance of KYC norms as per RBI
Responsibilities guidelines, verification of antecedents, employment status, income proof,
of Unmapped salary details and certificates, ITR (copy of the ITR filed/ IT assessment
Branches orders submitted with the application should be carefully scrutinized. In case
the gap between filing of two ITRs is found to be less than 6 months,
the reason for the same should be ascertained and due precautions
Page 35 of 159
should be taken while entertaining the proposals), address/telephone
number proof & such other vital documents on which credit decision is based.
Credit due diligence – involving mainly verification of financial track record,
credit history of the applicant, banking & borrowing details (statement of loan/
operative accounts for the last one year), CIBIL data & RBI Defaulters’ List,
enquiries with peers or neighbors, colleagues or respectable known
references & confidential enquiries required for compliance with KYC norms
as per RBI guidelines.
Legal due diligence – covering mainly legal scrutiny of title deeds in original, to
ensure availability of marketable title for the owner/mortgager over the
property offered as security, verification of genuineness of the original title
deeds by carrying out search in the records of Sub registrar’s office in order
to protect the Banks interest against deposit of spurious title deed, obtention
of encumbrance certificate covering minimum required period, scrutiny of
mother deed – on which the title of the relevant property is derived, link
documents, & such other documents & papers which are necessary for
creation of effective & enforceable mortgage charge in favor of the Bank to
secure the exposure.
Property/Security due diligence – the process involves essentially
identification of the relevant property and its location offered as security,
assessment of its fair market value and acceptability of the same as security
for the bank, scrutiny of cost estimates for construction, verification of work
progress at periodical intervals in accordance with the approved plan by the
local statutory authorities – until the proposed structure is constructed in full
and the relative asset creation is completed as envisaged.
Note: Branch Manager should ensure that the legal search report and
valuation report should be obtained directly from the service providers
and Customers should not approach the service providers.
Verification by due diligence agency – Bank has empaneled the due diligence
agency for conducting pre-sanction verification of the information /documents
furnished by its prospective borrowers for Retail Loan. The services carried
out by the due diligence agencies are under:
 Identify verification based on submitted documents
 Address verification for Office/Residence of borrowers/ guarantors
 Income Tax Return verification
 Bank Statement/ Bank Passbook verification
 Salary slips verification
 Employment/ Business c\verification
 Dealer/ Builder/ Seller verification
 Applicants background/ profile including family of applicant verification
 Property/ Property ownership verification
Please Note: Services of due diligence agencies are additional and
supplementary, Branches/CPC-R have to do their own due diligence as per
prevalent guidelines. KYC of the applicant has to be verified by the Branch/CPC-
R only. Please refer circular no AX1/PSRC/Due Diligence agency/Cir. No.117/18-
19 dated 28.01.2019 for more details regarding Due Diligence Agency
Page 36 of 159
Flow chart
39 Deviation Permitting Relaxations in Housing loans from the stipulation made in the Lending
authority Policy (other than rate of interest) by ZLCC of Zonal Manager is Age of the
Applicant, Minimum Annual Income (in case of Repair and Renovation), deduction
norms and minimum length of service. All other deviations are vested with CAC III
of General Manager.
40 General  Housing loan shall not be granted exclusively for purchase of site. The loan
guidelines should be composite housing loan only (i.e., for purchase of site and
construction thereon)
 Construction work has to be completed within the specified moratorium
period as laid down in the sanction terms or else, Bank shall charge interest
at higher rate as applicable to commercial real estate advances.
 Copy of the building plan as approved by the competent local
administration/municipal/corporation authorities shall be held on record
and construction shall be carried out in accordance with the plan. This
aspect shall be monitored by bank appointed panel engineer. In case, it is
Page 37 of 159
found at a later date that, the building is utilized for commercial purpose,
interest applicable to CRE advances shall be charged from the date of
availment of the loan.
 Financing simultaneous purchase of two dwelling units or independent
houses or flats per family can be considered purely based on repayment
capacity & other norms within the eligible loan quantum assessed as per
the scheme guidelines in force.
 Reputation of builders & property developers shall be taken in to account
while financing purchase of flats by the applicant.
 Similarly financing purchase of flats from black listed builders & developers
as circulated by Local Chapter of IBA, shall not be permitted. For this
purpose, Zonal Offices should get from local chapter of IBA, list of such
black listed builders at quarterly intervals and provide such list/information
to CPC-R & Branches.
 In case of quantum of housing loan to be sanctioned is Rs.100.00 Lakhs
and above for purchase of ready built house/ready built flats, second
valuation report by another empaneled valuer shall be obtained for
comparison and determination of the fair value of the security. In all other
cases, second valuation of the property is not required.
 If Housing Loan borrower approaches the bank and seeks additional
funding on account of change in the scope/cost of the property under
construction, such requests may be considered by the respective
sanctioning authority on merits subject to compliance of the following:
 The extent of additional cost to be incurred shall be duly approved by the
empaneled valuer indicating the changes proposed with estimate of cost
for the same and loan component shall be computed excluding prescribed
margin
 Ensuring the eligibility/repayment capacity of the borrower to meet the
additional burden
 There shall not be any moratorium for this loan other than what is permitted
for the first loan.
 Repayment of this loan shall be co-terminus with the first loan. In other
words, repayment of loan shall be in terms of existing loan only.
 Since it is a term loan, loan for the enhanced portion be opened separately
but need not be treated a finance for second dwelling unit.
 Provided clearance of the Zonal Head is obtained before approving such
request
 Such approvals accorded shall not be deemed restructuring under the
extant guidelines.
Observations of Delhi High Court on Housing Loan

 In cases where the applicant owns a plot/land and approaches the
banks/FIs for a credit facility to construct a house, a copy of the sanctioned
plan by competent authority in the name of a person applying for such
credit facility must be obtained by the Banks/FIs before sanctioning the
home loan.
 An affidavit-cum-undertaking must be obtained from the person applying
for such credit facility that he shall not violate the sanctioned plan,
construction shall be strictly as per the sanctioned plan and it shall be the
sole responsibility of the executants to obtain completion certificate within
3 months of completion of construction, failing which the bank shall have
the power and the authority to recall the entire loan with interest, costs and
other usual bank charges.
Page 38 of 159
 An Architect appointed by the bank must also certify at various stages of
construction of building that the construction of the building is strictly as per
sanctioned plan and shall also certify at a particular point of time that the
completion certificate of the building issued by the competent authority has
been obtained.
 In cases where the applicant approaches the bank/FIs for a credit facility
to purchase the built up house/flat, it should be mandatory for him to
declare by way of an affidavit-cum-undertaking that the built up property
has been constructed as per the sanctioned plan and/or building bye-laws
and as far as possible has a completion certificate also.
 An Architect appointed by the bank must also certify before disbursement
of the loan that the built up property is strictly as per sanctioned plan and/or
building bye-laws.
 No loan should be given in respect of those properties which fall in the
category of unauthorized colonies unless and until they have been
regularized and development and other charges paid.
No loan should also be given in respect of properties meant for residential use but
which the applicant intends to use for commercial purposes and declares so while
applying for loan.
Note: Branch has to mandatorily take NACH debit mandate from the
borrower wherever they are not having salary / Main Business account with
our Branch.
41 Engagement of The Guidelines of appointing DSAs is as follows
DSAs  Following are the eligible entities to engage as DSAs.
o Any individual working in financial field such as approved agent for selling
LIC policies/NSCs/ Mutual Funds
o Marketing associates for builder’s project
o Approved valuers, CAs, Financial Planner, Tax consultants
o Regd. Partnership/Proprietorship firms, Public / Private companies
o Retired Officers of our Bank not having more than 70 years of age and
having working experience in credit department especially in Retail Loans
are preferable.
 Selection criteria
o The DSA should have team of executives/ persons sufficient to cover
branches allocated in the city. The sanctioning authority should make
proper analysis based on both the factors before considering any
proposals and accordingly put a condition to deploy minimum required
number of persons in its sanction. A clause to this effect shall also be
incorporated in agreement.
o Experience of working may not be insisted upon once convince with their
background, integrity and satisfactory track of record apart from CIBIL
score (minimum 600)
o DSAs in the panel of at least one bank/financial institutions may not be
mandatory but preferable.
o The service providers KYC compliance along with the details on capacity
and ability to perform the outsourced activities effectively is to be verified.
Zonal Offices are required to collect the details/documents of the firm/
companies/ associates/ individuals along with the enrolment form.
Page 39 of 159
o Report on due diligence carried out on the proposed Service Provider to
be appointed as DSA by the respective Zonal Office.
o DSAs will be initially engaged for a period of 3 years. However their
performance will be reviewed in every three months by the respective
Zonal Managers.
o For retired officers of our bank, one time clearance to be obtained from
HRM Dept. as regards to credentials of the officer.
 Business Target
o Minimum ticket size is Rs.10.00 Lakh for Rural & Semi-urban areas and
Rs.20.00 Lakh for other centers.
o No minimum number of cases to be stipulated, however it is to be
impressed upon to bring in at least Rs.50.00 Lakh business per month.
o If on continuous basis the performance is not satisfactory, it shall be
reviewed in every three months by the respective Zonal Managers. It may
be terminated also with serving the notice of one month. But he will be paid
commission for the proposals already mobilized.
o Zonal Head will be the Competent Authority for such case of
discontinuance on the recommendation of Branch Head or CPC-R In
charge.
o The sourcing of housing loan proposals by DSAs under Govt. Sponsored
Schemes will not be entitled for commission.
 Commission/ Remuneration for sourcing of project approval proposal
(on actual approval basis)
o Minimum Rs.200/- per flat/ unit of project
o Maximum Rs.5000/- per project
The role of DSAs is limited to sourcing of proposal only. KYC verification,
pre-sanction survey, appraisal, documentation, disbursement and post-
sanction visit in respect of Home Loans are to be done by the
Branches/CPCs.
42 Residential In the present scenario most developers have tie-ups with Banks or Housing
Project Approval Finance Corporations (HFC) who offer Home Loans to their customers. It makes
convenient for home loan buyers and saves them from the horror of collecting the
Legal Documents of the projects from the developers. Following are the methods
of approval of the Projects:
Approval under Normal Route:
1. Eligible builders:
 Builders who have been in the line of activity for a minimum period of 5
years Or Builders affiliated to the Industry Body i.e., State Chamber
of Housing Industry/ CREDAI with excellent track of record. Or Builders
enjoying ISO Certification Or SPV/SPC created for the purpose of
development of the Residential project with excellent Track record of the
Key Promoters + rating CRISIL/ICRA
 The constitution of the Builder Partnership Firms/ Private/Public Ltd
Company/LLP or Registered Employee Welfare Organizations, Co-
operative Group Housing Societies. The key promoters should be reputed
and experienced in the line of activity.
Page 40 of 159
 There should not be any legal case of significant nature like (i) default to
other Banks (can be ascertained by perusal of RBI’s defaulters list/ access
to CIBIL/CRILC date etc.), (ii) Land misappropriation and (iii) Tax evasion
etc. against the Builder/ Developer
 In case of Cooperative Group housing Societies, Authorities previous
experience or past track record is not needed.
 Satisfactory opinion report should be obtained in respect of
Builders/Developers from their Bankers who enjoy credit facilities with
other banks. In case of non-cooperation from their present bankers, a
registered post letter should be dispatched for seeking the opinion as per
proforma. In the meanwhile the same can be verified from CIC Bureau
such as CIBIL/ Equifax report appearing in personal/commercial and
based on satisfactory report one can proceed without waiting further for
compliance.
2. Eligibility criterion for the project:
The project under consideration should also fulfil the following criteria for approval
 Project has to be registered under RERA and builders have to be RERA

compliant.
 Project completion period should not normally exceed 36 months. Project
completion schedule be looked into, based on promoters past track record.
 Track record of the Builder in conveyance of a valid title in favor of the buyers
should be ascertained on the basis of latest two completed projects.
 Incase builders are new in the activity, then Zonal Heads in ZLCC are
empower to take suitable decision based on the satisfactory background
checking and proper due diligence.
 Minimum stake of 15% of promoters excluding land cost in the cost of project,
duly certified by the Chartered Accountants should be obtained. Total cost of
the project and means of finance of project be ascertained and full tie-up/
financial closure is to be ensured. Progress of work to be verified by site
inspection & photographs evidencing present stage of construction. Physical
progress of the project be examined with site visit vis-à-vis original plans.
 Availability of financials of the builder will be an added advantage to scrutinize
them for any adverse features including quantum of outside liability. However
tie-ups once approved need not be withdrawn even if the builder has low net
worth if the customer satisfaction level in the past projects are high.
3. Documents Required:
 A consent letter from the builder/Developer/EWHBS agreeing to enter in to
Tripartite Agreement with the bank and buyers as per the Tripartite
Agreement.
 The Builder/Developer/EWHBS should enter in to a Tripartite Agreement with
the Bank and Buyer at the time of sanction of Home Loan. The
Builder/Developer/EWHBS should agree in the Tripartite Agreement to (i)
deliver the Title Deeds in favor of the purchaser of the Flat directly to the Bank,
(ii) insist on No Objection (NOC) certificate from the Bank before cancellation
of the Agreement to sale and refund of payments received and (iii) to convey
Banks security interest to the existing/ proposed Society for noting Bank’s
Page 41 of 159
charge in its record. The Tripartite Agreement may be drafted by the Legal
Dept. of the concerned Zonal Offices according to the local laws.
 Search report form one Empaneled Advocates be obtained certifying a clear,
absolute, marketable title to the property in favor of the Builders/Owners of
the property, including validity of the Joint Development Agreement, if any,
executed in this regard. Valuation report (Cost per Sq. Ft.) from one
empaneled valuer be obtained and should be used as benchmark for housing
loan.
 Possession of all mandatory statutory and legal clearances be ascertained. A
copy of the same should be obtained for record. If the same is available in
RERA site, then the same may be procured and kept in record after
verification of its genuineness.
 To prevent form fraudulent and mischievous activity such as multi financing
or multi sale of the same unit, it is advisable to take Search Report only
Supplementary legal opinion is to be obtained for the individual flats as the
title of the project land is scrutinized by our panel advocate, however this is
more relevant in the case where agreement to sale is registered at Sub
Registrar Office in the beginning.
 But there are many states where agreement to sale is executed between
Builders and purchaser on simple stamp paper without its registration at Sub
Registrar Office, then in that case it is the duty of the sanctioning authority to
ensure no multiple financing or same flat is not sold to many, y proper due
diligence and its search on CERSAI Site with exclusive Tripartite Agreement
wherein indemnity clause incorporated to safeguard the interest of the Bank.
The same may be vetted and approved by the legal department.
 All the projects should be invariably be registered under RERA as
stipulated in the Act for under construction projects and newly launched
projects. Wherever the interim setup established in certain states then till the
time it becomes in practice, we may relax this clause only up to the period it
is adopted by such states.
Automatic approval under CRE Project:
 Wherever HO/ZO extends credit facility for construction/ deployment of
project consisting of residential real estate, the project will stand
Automatically Approved for Home Loans.
 Since due diligence done by the CPCs/ZOs at the time of project approval,
hence branches need not repeat the processes like Builder KYC, Title
verification & Search Report etc. which form part of due diligence done by
CPCs/ZOs.
 (1) Projects promoted by reputed builders h\who enjoys CRISIL rating of
DA1/DA2 and/or ICRA rating of DR1/DR2+/DR/ DR2-, which indicate
developers ability and excellent past track record in execution of real estate
projects as per specified quality levels and conveyance of title deeds to
allotees within stipulated time schedule and strong project execution capacity
of the builder.
Or
(2) Projects with CRISIL rating of PA1/PA2 and or ICRA rating of
RT1/RT2+/RT2/RT2- which indicates highest ability of the developer to
Page 42 of 159
specify and build to agreed quality levels and transfer clear title within
stipulated time schedule and where the project risk factors are very low.
 There are many projects started by the selective welfare agencies working
for the welfare of specific Groups such as Central Govt. employees, railway
Employees, Defense personnel namely CGEWHO, IRWO, AWHO and
AFNHB etc. respectively. Their projects will stand automatically approved
with an exclusive Tripartite Agreement wherein indemnity clause
incorporated to safe guard the interest of the bank. The same may be vetted
and approved by the legal department.
 Projects through Govt. approved Development Authority/Body based at
various places whose primary job is to provide dwelling units such as
MHADA, DDA, and LDA etc. will also considered as approved. Wherever
conveyance deed is not executed, the NOC to mortgage has to be invariably
obtained and ensuring our lien, marked on their records.
 Some of the Public Sector Organizations are also allotted lands through Govt.
or State Agencies to develop Dwelling units in urban areas such as NBCC,
the same projects should also considered as approved projects for funding
the individual borrowers as per prevailing scheme. Norms and guidelines to
be followed as per applicability mentioned above.
 Search report from one empaneled advocates be obtained certifying a clear,
absolute marketable title to the property in favor of Builders/Owners of the
property, including the validity of the Joint Development Agreement, if any,
executed in this regard. Valuation report (Cost per Sq. Ft.) from one
empaneled valuer be obtained and should be used as benchmark for housing
loan. Valuation is applicable in case of Private Builders, No need of valuation
for projects of Govt. Agencies/ welfare agencies.
All the builders/projects which conform to the above norms stand automatically
approved subject to annual review on the basis of current ratings awarded to the
Builders/Projects.
Approval of Builders under Exclusive Normal Route (Pre-launch):
Reputed Builders who
1. Have been in the line of activity for a minimum period of 10 Years OR
2. Are affiliated to the industry body/ state chamber of housing industry OR
3. Enjoy ISO certification and
Who fulfils the above eligibility norms, will be approved by the Zonal Manager
Committee of the respective zone.
Process:
 Execute a simple letter of undertaking agreeing to
o Deliver the title deed in favor of purchaser of the flat directly to the Bank
o Insist on No Objection Certificate (NOC) from the bank before
cancellation of Agreement to Sale and refund of payments received
thereunder
o To convey Banks security interest to the Society , if any, proposed to be
formed after completion of construction for noting Bank’s charge in the
Society records
Page 43 of 159
 Search report from one empaneled advocates be obtained certifying a clear,
absolute marketable title to the property where the property is proposed to be
constructed, including the validity of the Joint Development Agreement, if any,
executed in this regard.
 Possession of all mandatory legal clearances under various extant builders’
laws and other legal enactments and copy obtained for our record.
 Valuation report (Cost per Sq. Ft.) from one empaneled valuer be obtained
and should be used as benchmark for housing loan.
 It should be ensured that the builder complies with the stipulations
before sanction of loans in the project to the individual borrowers.
Approval of projects already approved by other Banks:
If any Residential Building Project approved by any banks such as (SBI, HDFC,
BOB & PNB etc.) especially PSBs then in that case the projects approval to be
done by respective Zonal Heads under ZLCC after keeping following documents
on records.
 Copy of the sanction letter of the project from the banks.
 Copy of RERA registration Certificate.
 Search Report from empaneled lawyer certifying builder’s/third party’s (who
owns the property) clear, absolute, marketable title to the property where the
project is proposed to be constructed, including validity of the joint
development agreement, if any, executed in this regard. [This can be obtained
even after giving the approval by Zonal Head under ZLCC based upon being
approved by other Banks (Public Sector Bank, HDFC & Private Banks).On
receiving the individual proposal out of the approved projects to curtail the
beginning costs by mentioning in the project approval letter but prior to
disbursement]
 Valuation report (Cost per Sq. Ft.) from One empaneled valuers be obtained
and should be used as benchmark for housing loan (at the time of funding the
cases).[This can be obtained even after giving the approval by Zonal Head
under ZLCC based upon being approved by other Banks (Public Sector Bank,
HDFC & Private Banks).On receiving the individual proposal out of the
approved projects to curtail the beginning costs by mentioning in the project
approval letter but prior to disbursement]
 Further if any housing loan sanctioned in any of the builder’s or Co-
operative housing society’s residential project then entire project to be
considered as approved. Only it is to be vetted by Zonal Head under
ZLCC. Based on the fact that search report is already obtained while
sanctioning the housing loan and sanction is conveyed based upon the
merit and compliance of all terms and condition.
Tripartite Agreement for under construction project:
Please refer the circular No. AX1/FMC/Cir. 18/Builder/2017 dated 16.09.2014. We
have received clarification from IRM dated 18th January, 2018. As per practice, for
under construction project Bank has to obtain tripartite agreement.
However at places where registration of agreement to sale is executed and
registered with sub registrar and builders are not agreeing to execute the aforesaid
agreement (as other banks are also not insisting or taking) in such cases, Zonal
Manager as an authority wherever feel it as an obstruction for garnering the
business, specific waiver may be allowed on the merits of each case as an
Page 44 of 159
exception, but not as regular practice provided other due diligence measures are
intact and followed in to.
PROCESS FLOW FOR POST PROJECT APPROVAL
Subsequent Search:
CPC/ZO (where original file is kept) should obtain periodical Title Search Report
once in every 12 months from the date of previous Search to verify the status of
encumbrance of the Project land (applicable only where Registered Agreement
for sale is not in vogue). The report should be uploaded at Builder Tie-ups site by
CPC/ZO immediately on receipt. A list for subsequent Periodical Search should
be maintained by CPCs/ ZOs and request for subsequent search should be sent
to the Advocate regularly.
Inspection Report:
The Nodal officer from CPC/ZO should obtain Quarterly Inspection/visit Report of
the Project (as per annexure IX), mentioning the stage and level of construction
at Builder site. This Report should be referred by other offices/ CPCs. The CPCs,
therefore, have a greater responsibility to ensure timely and regular updation of
Inspection Reports in respect of all Projects falling within their jurisdiction.
Inventory Report:
The CPC/ZO should monitor the inventory record on Quarterly basis, by visiting
the Project site/ Marketing office and maintain a record of the same to accelerate
marketing efforts besides avoiding multiple sale/financing. The provision for
updating on RERA site is also there and cross verification to be made as per
necessity.
Disbursement Procedure:
Disbursements under such approved projects would be only Construction Linked.

For Projects where Advance Disbursement Facility (ADF) has been approved,
sanction terms would be applicable. The disbursements shall be made to the
Builders directly through RTGS/NEFT/DD followed by an e-mail to the Builder
advising the Name, Account Number and Amount remitted for the Flat No.-,
allotted to the borrower. In all cases the Builders should be impressed upon to
Incorporate their account Number, IFSC Code and the Name of the Banker in the
Demand letter. However Disbursement by DD to the builders shall be avoided to
encourage E-Transactions.
Validity of Approval
The validity of the project approval will continue for the duration of the Project, viz;
as long as the sales are taking place in the Project. A Review should be done by
the Approving Authority at the interval of 12 months to assess the business
booked.
Exposure Ceiling in approved project
To mitigate the exposure risk and to avoid over exposure from risk management
perspective on any single project, the exposure of financing the dwelling units in
Page 45 of 159
approved project should not exceed 25% of the total number of dwelling units of the
project in case of own financing and in case of approved project without our any credit
exposure maximum ceiling of exposure is 20% of the total dwelling units of the project.
However please note that it is builder specific but project specific as recognized for
approval in the RERA acts (e. g. if each tower having separate RERA registration
No. then it will be considered two project even if it is promoted by the same builder
and maximum ceiling exposure will be considered accordingly)
Project closed/Sold Out:

The Projects where total inventory has been sold out should be marked as
*closed* on intranet by the Approving Authority, under intimation to CPC. Please
ensure its deletion from Bank’s website too.
Maintaining Relationship with Builders:
Zonal Manager will identify one Nodal Officer for each Project. All existing
Projects should be linked with one Nodal Officer. He/ She will be the single point
contact for the Builder.
Quarterly Joint visits to the Builders should be conducted by CPC / ZO to get
feedback.
Marketing Associates nominated by the Builder should be updated with the latest
Home Loan products and procedures of the Bank. Our DSAs be informed of
approved projects.
CPCs should create one email id for receiving Builder's queries and feedback on
products and Processes and should evolve a mechanism to check all emails on a
daily basis and respond to the queries to ensure better customer service.
Publicity by incorporation of Bank’s Logo:
Zonal office should impress upon the builder to incorporate our Bank’s logo in their
project related advertisement.
The above process is recommended for approval to bring more convenience and
ease in doing business at field level. Since business are captured at the source
hence we propose to adopt the above models.
Following proforma as per annexure is also enlisted for approval.
 List of documents to be obtained from Builder
 Letter from Builder for Tie Up & Information Form
 Undertaking from Builder on letter Head
 Affidavit Cum Declaration (to be notarized)
 Certificate from CA on its Letter Head
 Approval Format for project approval
 Disclaimer to be displayed at notice board/ Bank’s Website
 The data has to be updated in Business Channel Partner.
-------------------------------------------------------------x------------------------------------------------------------
Page 46 of 159
Annexure I
HOUSING LOANS CREDIT SCORING MODEL
Categories Parameters Score Max

Score
PERSONAL ACADEMIC QUALIFICATION 5
CHARTERSTICS Under Graduate 1
Graduate 3
Post Graduate 4
Professional 5
EMPLOYMENT TYPE 5
Permanent Job with PSU/Govt. 5
Permanent Job with MNC 5
Pensioner /Permanent Job other than MNC 4
Self Employed -- Professional 4
Self Employed – Non Professional 3
Agriculturist as per guidelines 3
Work Experience / Years in Business or 5
Practice
1. < 1 Year 0
2. 1-3 Years 2
3. 3-5 Years 3
4. > 5 Years 5
MARITAL STATUS 5
Single 3
Married 5
Divorced 1
AGE OF THE APPLICANT 5
1. Up to 21 Years 0
2. 21-30 Years 3
3. 30-45 Years 5
4. 45-55 Years 4
5. > 55 Years 2
BANK RELATIONSHIP 5
No Relationship 1
Relationship with Bank < 5 year 3
Relationship With Bank 5-10 Year 4
Relationship With Bank >= 10Year 5
RESIDENCE TYPE 3
Rented 1
Company Lease 2
Owned (Pucca House) Metro /Large city 3
Owned (Pucca House) Other than Metro and Large 2
city
Owned (Kaccha House) 1
No. of Years residing in current address 2
< 1 Year 0
> 1Year and <= 3Years 1
>3 Years 2
Spouse / Co Applicant Income 5
Page 47 of 159
Above 5 Lakh 5
Above 3 Lakh up to 5 Lakh 4
Less than 2 Lakh 0
No. of dependents 5
1. No. of dependents up to 2 5
2. No. of Dependents - 3 4
3. Dependents 4 or 5 3
4. More than 5 1
Capacity to Repay Monthly Average Disposable Income 5
(Incl. Proposed EMI) 1. Up to Rs.8000 0
2. Rs.8000 – Rs.15000 2
3. Rs.15000 – Rs.25000 3
4. >Rs.25000 5
For Salaried EMI / NMI Ratio (NMI –Net Monthly Income) 10
(GI – Gross income)
NMI <= Rs. 0.25 Lac 1. GI<= 3.00 Lac & EMI /NMI up to 40% 10
2. GI<= 3.00 Lac & EMI/NMI > 40-60% 6
3. GI<= 3.00 Lac & EMI/NMI >60% 0
NMI > Rs 0.25 Lacs 1. GI > 3.00 Lac & <= 24 Lacs & EMI /NMI up to 10
and <= Rs. 2 Lacs 50%
2. GI > 3.00 Lac & <= 24 Lacs & EMI /NMI 50- 8
60%
65%
4. GI > 3.00 Lac & <= 24 Lacs & EMI /NMI > 65% 0
NMI > Rs. 2 Lacs 1. GI > 24 Lac EMI /NMI up to 50% 10
2. GI > 24 Lac EMI /NMI 50-60% 8
3. GI > 24 Lac EMI /NMI 60-70% 6
4. GI > 24 Lac EMI /NMI >70% 0
For Others (Business EMI / NMI Ratio
& Professionals )
NMI <= Rs. 0.25 Lac 1. GI<= 3 Lac & EMI / NMI up to 30% 10
2. GI<= 3 Lac & EMI/ NMI > 30-60% 6
3. GI<= 3 Lac & EMI/ NMI > 60% 0
NMI > Rs 0.25 Lacs 1. GI > 3 Lac & <= 20Lacs & EMI / NMI up to 10
and <= Rs. 1.67Lacs 50%
2. GI > 3 Lac & <= 20 Lacs & EMI / NMI 50-60% 8
4. GI > 3 Lac & <= 20 Lacs & EMI / NMI > 65% 0
NMI > Rs. 1.67 Lacs 1. GI > 20 Lac EMI / NMI up to 50% 10
2. GI > 20 Lac EMI / NMI 50-60% 8
3. GI > 20 Lac EMI / NMI 60-70% 6
4. GI > 20 Lac EMI / NMI >70% 0
Loan Information No. of Applicants 5
1. Single 1
2. Joint 2
3. Joint Where co-applicant is earning 5
Repayment Period 5
360 months 2
Page 48 of 159
Above 240 months – up to 360 months 3
Up to 180 months 5
Repayment Type 5
Others 0
Post Dated Cheques 2
ECS / Standing Instruction linked to other accounts 3
ECS / Standing Instruction linked to Salary 4
Account
CHECK OFF (Salary deduction / undertaking from 5
employer)
Purpose of Loan 5
Others 0
Under Construction – No Builder Tie-up 1
Under Construction – Builder Tie-up 3
New / Resale – Ready Possession 5
Land / Plot / owned Plot (Construction thereon) 4
Net worth in comparison to Loan Requested 5
More than 200 % 5
More than 150 % 4
More than 100 % 3
Less than 100 % 2
LTV Ratio 10
Loan Amount Up to Loan to Value( LTV) ratio <= 50% 10
30 Lakh Loan to Value (LTV) ratio 50-60% 8
Loan to Value (LTV) ratio 60-70% 6
Loan to Value (LTV) ratio >90% 0
Loans above Rs.30 Loan to Value( LTV) ratio <= 50% 10
Lakh and Up to Rs.75 Loan to Value (LTV) ratio 50-60% 8
Lakh. Loan to Value (LTV) ratio 60-70% 6
Loan to Value (LTV) ratio >80% 0
Above Rs.75 Lakhs Loan Amount above 75 L & LTV Ratio <=50% 10
Loan Amount above 75 L & LTV Ratio 50-60% 6
Loan Amount above 75 L & LTV Ratio 60-75% 4
Loan Amount above 75 L & LTV Ratio >75% 0
Bureau Information CIBIL Score 5

–CIBIL Score
<= 600 0
No CIBIL Score( -1/0 or 1 to 5) 2
Above 600- up to 650 3
Above 750 5
Page 49 of 159
Cut-Off Ranges:
Score Range Credit Grade Lending Decision

>80 Grade – 1 Clear Sanction
71-80 Grade – 2
61-70 Grade – 3
51-60 Grade – 4
41-50 Grade – 5 Application to be referred to
the next higher authority.
Up to 40 Grade – 6 Decline
Page 50 of 159
Annexure 2
TOP-UP LOAN AND REPAIR & RENOVATION SCORING MODEL
Categories Parameters Score Max

Score
PERSONAL ACADEMIC QUALIFICATION 5
CHARTERSTICS Under Graduate 1
Graduate 3
Post Graduate 4
Professional 5
EMPLOYMENT TYPE 5
Permanent Job with PSU/Govt. 5
Permanent Job with MNC 5
Pensioner /Permanent Job other than MNC 4
Self Employed -- Professional 4
Self Employed – Non Professional 3
Agriculturist as per guidelines 3
Work Experience / Years in Business or 5
Practice
1. < 1 Year 0
2. 1-3 Years 2
3. 3-5 Years 3
4. > 5 Years 5
MARITAL STATUS 5
Single 3
Married 5
Divorced 1
AGE OF THE APPLICANT 5
1. Up to 21 Years 0
2. 21-30 Years 3
3. 30-45 Years 4
4. 45-55 Years 5
5. > 55 Years 4
BANK RELATIONSHIP 5
No Relationship 1
Relationship with Bank < 5 year 3
Relationship With Bank 5- 10 Year 4
Relationship With Bank >= 10 Year 5
No. of Years Home Loan account has been 5
running ( in years )
Up to 18 months 0
18 months to 36 months 2
36 months to 60 months 3
Greater than 60 months 5
Spouse / Co Applicant Income 5
Above 5 Lakh 5
Less than 2 Lakh 0
No. of dependents 5
Page 51 of 159
1. No. of dependents up to 2 5
2. No. of Dependents - 3 4
3. Dependents 4 or 5 3
4. More than 5 1
Capacity to Repay Monthly Average Disposable Income 5
(Incl. Proposed EMI) 1. Up to Rs.8000 0
2. Rs.8000 – Rs.15000 2
3. Rs.15000 – Rs.25000 3
4. >Rs.25000 5
For Salaried EMI / NMI Ratio (NMI –Net Monthly Income) 10
(GI – Gross income)
NMI <= Rs. 0.25 Lac 1. GI<= 3.00 Lac & EMI /NMI up to 40% 10
2. GI<= 3.00 Lac & EMI/NMI > 40-60% 6
3. GI<= 3.00 Lac & EMI/NMI >60% 0
NMI > Rs 0.25 Lacs 1. GI > 3.00 Lac & <= 24 Lacs & EMI /NMI up to 10
and <= Rs. 2 Lacs 50%
60%
65%
4. GI > 3.00 Lac & <= 24 Lacs & EMI /NMI > 65% 0
NMI > Rs. 2 Lacs 1. GI > 24 Lac EMI /NMI up to 50% 10
2. GI > 24 Lac EMI /NMI 50-60% 8
3. GI > 24 Lac EMI /NMI 60-70% 6
4. GI > 24 Lac EMI /NMI >70% 0
For Others (Business EMI / NMI Ratio
& Professionals )
NMI <= Rs. 0.25 Lac 1. GI<= 3 Lac & EMI / NMI up to 30% 10
2. GI<= 3 Lac & EMI/ NMI > 30-60% 6
3. GI<= 3 Lac & EMI/ NMI > 60% 0
NMI > Rs 0.25 Lacs 1. GI > 3 Lac & <= 20Lacs & EMI / NMI up to 10
and <= Rs. 1.67Lacs 50%
4. GI > 3 Lac & <= 20 Lacs & EMI / NMI > 65% 0
NMI > Rs. 1.67 Lacs 1. GI > 20 Lac EMI / NMI up to 50% 10
2. GI > 20 Lac EMI / NMI 50-60% 8
3. GI > 20 Lac EMI / NMI 60-70% 6
4. GI > 20 Lac EMI / NMI >70% 0
Loan Information No. of Applicants 5
1. Single 1
2. Joint 2
3. Joint Where co-applicant is earning 5
Repayment Period 5
180 months 2
Up to 120 months 5
Repayment Type 5
Others 0
Post Dated Cheques 2
Page 52 of 159
ECS / Standing Instruction linked to other accounts 3
ECS / Standing Instruction linked to Salary 4
Account
CHECK OFF (Salary deduction / undertaking from 5
employer)
Purpose of Loan 5
Other purpose 3
Repair and Renovation 5
Ratio to Net worth to Loan Amount 5
More than 200 % 5
More than 150 % 4
More than 100 % 3
Less than 100 % 2
LTV Ratio 10
Loan Amount Loan to Value( LTV) ratio <= 50% 10
Loan to Value (LTV) ratio >75 % 0
Bureau Information CIBIL Score 5
–CIBIL Score
<= 600 0
No CIBIL Score( -1/0 or 1 to 5) 2
Above 750 5
Cut-Off Ranges:
Score Range Credit Grade Lending Decision
>80 Grade – 1 Clear Sanction
71-80 Grade – 2
61-70 Grade – 3
51-60 Grade – 4
41-50 Grade – 5 Application to be referred to
the next higher authority.
Up to 40 Grade – 6 Decline
Page 53 of 159
Annexure 3
CHECK LIST FOR HOUSING LOAN
1. Application form duly complete and signed

2. Two passport size photographs
3. Proof of Identification : (any one)
 Election ID Card
 Pan Card
 Aadhar Card
 Driving License
 Photo Identity card issued by the current Employer
 Passport
4. Proof of Residence: (any one)
 Electricity Bill
 Telephone Bill (Landline)
 Aadhar Card
 Driving License
 Passport
5. For Salaried Persons
 Original / Certified copy of the latest salary slips for the past 3 months
 Copies of IT returns of last 2 years duly acknowledged by IT Dept./IT assessment orders
or Form 16 for last 2 years from the Employer
 Undertaking from the employer for remittance of monthly installment, where ever
feasible
 Bank Account (Salaried Account) Statement for the last 6 months (in case of other
Bank)
6. For Non-Salaried Class/ Businessman/ Professional
 Latest 3 years Income Tax Returns (2 years in case of Professionals) including
Computation of Income, Profit and Loss Account, Balance Sheet, Audit Report etc.
 Shop Establishment Act
 Tax Registration Copy
 Company Registration License
 Bank Statement for past one year
7. Guarantor forms along with net worth proof /income proof (if applicable)
8. Guarantor's IT Return along with KYC Documents as mentioned in point No 3 & 4
9. In case of Takeover (Refinance):
a. Loan outstanding statement as on date
b. Loan account Statement for last 12 months
c. Documents Acknowledgement Receipt from Bank
10. Property Documents:

1. Receipts for payment made for purchase of the residential unit
2. Copy of approved drawings of proposed construction/ purchase
Page 54 of 159
3. Permission from competent authority for construction of flat/house
4. Permission from competent authority under Urban Land Ceiling & Regulation Act 1976
5. Agreement for Sale/ Sale Deed/ Detailed Cost estimate from Regd. Architect/Engineer for
the Property to be constructed.
6. Allotment letter from the Builder/ Co-Operative Society/Development authorities/
Association of apartment owners etc.
7. Other Documents depending upon:
a. Property to be purchased directly from Builder( Ready/ Under Construction)
b. Property Belonging to a Registered Co-Operative Housing Society
c. Purchase in resale
d. Direct Sale by any Development Authority
e. Construction of house on a separate plot of land
11. ADDITIONAL DOCUMENTS FOR NRIs

 Copy of the employment Contract (if the contract is in any language other than English,
the same has to be translated into English and attested by Employer/ Indian Embassy)
 Copy of the Identity Card issued by the current Employer
 Continuous Discharge Certificate, if applicable
 Copy of latest work permit
 Copy of the Visa Stamped on the passport
 NRE Bank account passbook or statement of account
 Overseas Bank Account Statement for the last 6 months in which salary is credited
 A Salary certificate/income statement duly attested by our foreign office including
subsidiary office/ certified by the competent authority available in the country may be
produced. This may also include Chartered / Certified Accountants, Officials of Inland
Revenue dept. (similar to Income Tax Authorities in India) or any other agency specified
for the purpose. Where ever attestation is not possible, this may be submitted duly
notarized.
12. ADDITIONAL DOCUMENTS FOR PIOs

1. A photocopy of the PIO Card or any of the under noted documents:-
2. Current Passport indicating birth place in India/ Abroad
3. Indian Passport, if held earlier
4. Parents or grandparents passport with details there in substantiating his claim of being
PIO
Page 55 of 159
Pre Sanction Visit Report for Housing Loan
Date of Visit:
Name of Officer/ Staff:
Designation: Branch Name:
SN. Particulars Details

1 Name of Applicant
2 Loan amount applied
3 Name of Branch
4 Name of Visiting officer
5 Contact no. of applicant.
6A Current residential
address
& Date of Visit
6B Business/Employers
address
& Date of Visit
6C Proposed Property
Address
& Date of Visit
7. Cost of the Flat Rs. in
Lakh
8A Area of the flat in Sq. ft.
8B Type of flat
9. Landmark of property
10. Locality/area of project
11. Name of Builder/scheme
12. Construction status of the
project/flat
13. No. of flats/houses
already financed by BOM
in the project / building /
society.
14. Amenities, Basic/Modern
15 A Water/ Electricity
connection
15 C Materials stored
15 D Car parking allotted
15 E Board indicating name of
project & builder
15 F Connectivity with road
15 G No. of labors working
16. Expected date of
possession
17. Name of Person
contacted at site and
whether confirmed about
cost of flat, allotment of
the same to applicant,
Page 56 of 159
advance money paid if
any etc.
18. Any other details of
Project/property
19. Remark/observation
(Include applicant’s
current residence,
employment or business
details, personal details,
relationship with bank
etc.)
20. Recommendation (attach
separate sheet if
required)
Date: Name & Signature of visiting official:
Page 57 of 159
Post Sanction Visit Report Proforma for Housing/ Repair renovation/ Top Up/ LAP Loan:
Date of Visit:
Name of Officer/ Staff:
Designation: Branch Name:
1. Loan Account No.

2. Name of Borrower/ Co Borrower
3. Borrower / Co- Borrower/ Guarantor :
Current Residential Address

4. Residence Owned/ Rented/ Others, specify
________________________
5. Purpose of Loan
6. Loan amount sanctioned with date
7. Type of loan
8. (Property to be purchased)
Address:
Nearby Landmark
9. Date of Legal Clearance Certificate of
Immovable Property (Flat/ Bungalow/
Row House/ etc.)
10. In Case Disbursement to be made in
stage (then mention) First or
subsequent Disbursement stage or
mention full and final
11. Whether all the conditions in the
sanction communication complied with
before the disbursement. If the answer
is no. specify the conditions which is
not yet complied with
12. Is any written undertaking obtained
from the borrower regarding the
compliance of hitherto non-complied
conditions
13. Is this (above) non-compliance of the
condition detrimental to the interest of
the Bank?
14. Is any condition waived? If yes,
mention the waived condition and the
authority who waived it.
Page 58 of 159
15. Amount proposed to be disbursed with
the purpose for which it is going to be
disbursed
16. Eligible amount for disbursement as
per norms
17. No. of disbursements effected with date, amount & purpose. (Disbursements effected
during the period after sanction need be considered)
Sl.No. Amount Date Purpose Margin
18. If it is a loan take over, specify the

details like Bank, outstanding balance,
asset classification etc.
19. Whether necessary assessment of end
used ensured (inclusive of utilization of
previous disbursements)
20. Whether all the bills/invoices and
receipts for payment are received in
the case of disbursements of housing
loan under construction.
21. Whether the duly filled up stamped
receipt obtained from the party and
filed.
22. Whether the assets
created/mortgaged are insured & copy
of policy obtained and Date of expiry of
insurance policy.
23. Other observations, if any:
Page 59 of 159
LEGAL ASPECTS
Sl. Documents Checked Status Remarks

No. Yes/No.
1 Whether the sanction letter accepted by all
concerned Borrower/ Guarantor.
2 Whether processing fee Collected.
3 Whether title of properties cleared in the legal
scrutiny report and all the required documents
produced.
4 Whether sufficiency of security for the loan
sanctioned checked as per LTV value.
5 Whether the loan agreement properly executed in
the correct format and in stamp paper as per
norms through loan doc software.
6 Whether the title documents are properly
deposited.
7 Whether confirmation of deposit letter properly
executed.
10 Personal guarantee deed of all concerned
executed in proper format and witnessed as per
loan doc software.
12 Whether all conditions of sanction complied.
13 Confirmation regarding non-existence of any
statutory charges or other charges on the
mortgaged assets obtained.
14 Whether documents signed are duly stamped and
property executed and signed by all concerned.
15 Whether all the pages of the security deeds are
signed by authorized signatories and properly
witnessed.
16 Documents are vetted as per guidelines by
appropriate authority
Date: Name & Signature of visiting official:
Page 60 of 159
On letter head of the Branch
----/------/HSG/18-19
________ Sep’ 201_
Sanction Letter for Maha Super Housing Loan
To,
____________________ ____________________ ____________________
____________________ ____________________ ____________________
____________________ ____________________ ____________________
(Applicant) (Co-Applicant) (Guarantor)
Sanction No. ----/--/18-19

Product Code
BSR Activity Code
Sector Priority / Non Priority
Dear Sir,
Ref: - Housing Loan application of Rs _____________ (Rupees _____________ _____________)
We refer to loan application of Mr /Ms/Mrs__________________________________________

for Maha Super Housing Loan and convey our sanction as under:
Nature of facility Term Loan

Amount of facility Rs (Rupees _________________________)
Purpose
Primary Security Equitable mortgage of Land and Building bearing
______________________________________________________________
bounded by North-_________________, South-_____________, East-
___________________________, West-________________________
Total Land Area:________________sq.ft Construction Area: _________ sq.ft
Margin ____________of the realizable value of the property (Minimum 40%)
Rate of Interest 1 Year MCLR + _________ p.a. at present.
(to be reset after 1 year from date of first disbursement)
Moratorium Period
Repayment Period ____ months (Max 360 months )
Mode of Repayment Standing instruction from Savings / Business account for transfer of EMI and 12
PDC of other Bank or NACH Mandate
Amount of EMI & commences Rs ___________ /
from
Processing Fees 0.25% on the loan amount
Documentation Charges 0.10% on the loan amount
Inspection charges Nil
The property Mortgage to be insured comprehensively with Bank Clause.
Insurance and Maintenance of The Borrower shall ensure to pay all local body Taxes, Electricity charges, Water
Property Charges etc. periodically.
Cibil search charges: Rs.50/-+ GST for each applicant cibil
Cersai Search Charges Rs.100/- + Service tax(GST) TO BE RECOVERED
Page 61 of 159
Other Terms & Conditions:
 The applicant borrower should give an undertaking that the property will not be rented out/alienated
during the currency of the Loan.
 The loans availed should not be used for speculative purposes. An undertaking stating that the
amount of the loan will not be utilized for speculative purposes should be obtained.
 Bank’s Mortgage charge to be got noted with the competent/ appropriate authorities and CERSAI. The
Property extract denoting our charge should be held on record.
 The Branch Manager/Authorised official will visit the unit at the time of each disbursal and at least
once in a half year thereafter to ascertain security verification.
 The valuation of such security has to be necessarily done through approved valuer every three
years. In case there is any deterioration in the value of the property, proportionate curtailment in
the limit will be done immediately.
 The properties mortgaged to be insured comprehensively with Bank clause.
 Bank will have right to carry out inspection of securities and the charge thereof will be borne by
the borrower
 Facility is subject to annual review. Bank reserves the right to recall the limit in case of default.
 The borrower shall ensure to pay all local body taxes, electricity charges, water charges etc.,
periodically
 The borrower shall maintain the residential property in good condition.
 Processing fee @ 0.25 % and Document charges @ 0.10% on the loan amount, Exclusive of GST,
on one time basis to be collected upfront at the time of sanction. Advocate fees, architect/valuer
fees, CERSAI Registration Charges etc., on actual basis.
 All other applicable guidelines as per extant Lending policy in addition to above mentioned guidelines
should be followed scrupulously.
 Original Possession Letter along with copy of referred documents as suggested by empaneled
advocate in search report shall be held with the Bank.
 The borrower/s shall ensure execution of mortgage charge for the property available with the
Bank as security and submission of Original Sale Deed/ Title Deed along with other related
documents with the Bank as part of mortgage formalities prior to disbursement of facility.
 Flat/ Property should not be transferred, sold or mortgaged with any other institution/ branch
without prior consent of the Bank. An Undertaking from the borrowers should be obtained in this
regard.
 This sanction shall lapse automatically, in case the sanctioned facility is NOT utilized within 6
months from the date of above sanction.
 Whenever there is increase in rate of interest, EMI has to be increased so that the entire loan is
repaid within the stipulated repayment period. The consent from borrower/s and guarantor has
to be obtained for such increase in EMI. Accordingly, EMI is to be recovered to avoid over
dues/irregularity in the account.
 In case the time periodic review of the account, if any overdue, in the Interest / principle is
observed, the same shall be payable by the borrower along with interest, immediately, over &
above the regular installments.
 The delay in payment of Installment shall render the borrower liable to pay additional interest @
2 % p.a. (with monthly rest or such higher rate as per the rule of Bank and or RBI in that behalf as
in force from time to time). In such event, Borrower shall be liable to pay incidental charges and
cost to the bank. This shall be in addition and without prejudice to the rights available to the Bank.
The additional interest shall be calculated for the amount in default and period of default , which
shall be payable immediately , i.e. before ensuring monthly Installments or along with the ensuring
monthly installments,
Page 62 of 159
 Rate of Interest is subject to change as per change in MCLR/HO guidelines/RBI guidelines from
time to time without prior intimation.
 All other Schematic/ policy terms as per Bank guidelines shall be complied by the borrower/s/ and
guarantors as & when demanded by the Bank
Yours faithfully
Chief Manager/ Branch Manager

___________ Branch
All the terms and condition accepted unconditionally
Signature of Applicant Signature of Co Applicant Signature of Guarantor
Page 63 of 159
Format for Inprinciple Sanction ( to be given on Bank’s Letter Head)
Sanction No.: Date:
To
________________________
________________________
________________________
________________________
Sub: Your In-principle approval Letter for Maha Super Housing Loan of Rs.
Ref: Application No.
Dear Sir / Madam,
We are pleased to convey our in-principle approval for Home loan of Rs…………….../-
(Rupees ………………………………………………………………….) based on the declared
information. This will be subject to satisfactory submission of various documents and
satisfactory Due Diligence by the Bank that would include clear and marketable title over the
property, other Reports and other norms and prevalent terms and conditions.
Name of the Borrower

Name of the Co-borrower
Name of the Guarantors
Product Maha Super Housing Loan Scheme
Loan amount
Purpose
Interest rate (Floating)*
Loan Tenure
EMI
Processing Fees
LTV / Margin Loan amount LTV Ratio Minimum Margin
Up to Rs.30.00 Lakh 90% 10%
Above Rs.30.00 Lakhs and up to 80% 20%
Rs.75.00 Lakhs
Property address (if already

identified)
* Subject to CIBIL score, it may vary at the time of actual sanction.
Page 64 of 159
Special Conditions:
• Creation of valid (equitable) mortgage over the land /house/flat wherever applicable.
• Verification of original documents in respect of proof of identity / residence/ income and property.,
• Final loan amount will be based on detailed assessment and verification after submission of the
required documents.
• The interest rate quoted above may change upon detailed assessment of loan as per eligibility and
other norms. Rate of interest is also subject to change based on the bureau rating at the time of
final sanction of the loan application
• Legal and technical clearance of the property to be done
Please keep the documents ready in original along with a copy of this letter for swift proceedings and
processing. These documents/papers/enclosures (copies and originals) will be required for appraisal and
processing of loan. Applicant will also be liable to bear the actual expenses pertaining to Stamp duty,
Registration Charges, Government dues & other statutory charges and taxes as and when applicable. In
addition to this, Legal fee, valuation fee and other actual costs pertaining to the processing of loan will
be borne by the applicant.
Indicative List of Documents:

As per the Annexure.
Validity:
This in-principle sanction is valid only for two months from the date of issuance.
Disclaimer:
The in-principle approval for loan is subject to correctness of information provided by you, its
successful verification and satisfactory completion of detailed due diligence as per Bank norms and
requirements. This letter shall stand unilaterally revoked and cancelled by us and shall be absolutely
null and void, if there are any material changes in the information you have provided based on which
the said loan is in-principally approved by the Bank. Please note that availability of Loan/Finance shall
be at sole discretion of the Bank.
Signature of the Authorized Official

Name and Designation
Signature of the Borrower

Name and Address
Page 65 of 159
Indicative List of Documents:
Annexure
Property Related Documents:
1. Documents of title in case of own property and/ or all the link documents evidencing Seller's
title in case of purchase of property, i.e. Sale Deed and earlier title deeds copies.
2. Up to date encumbrance certificate for the past 30 years.
3. Latest property Tax-paid receipts.
4. Legal Opinion on title to property from Bank's approved advocate to be obtained through the
branch.
5. Copy of Approved Plan and Building License
6. Valuation report from approved Civil Engineer to be obtained through the Branch.
7. Estimation of Construction for Construction Loan.
8. Proof of advance payment, if any.
9. Agreement for sale between applicant and the seller of house property containing terms of
payment for purchase of existing house. For flats the Agreement for sale is for the sale of
undivided interest in the land and right to construct flat thereof. And Copy of Occupancy
Certificate issued by the local authority.
10. Where the flats are under construction and possession is not immediate, Tripartite Agreement
between Builder/Promoter, Applicant the Bank has to be entered. Builder’s consent letter to
this effect to be produced.
Checklist:
1. Application form duly complete and signed

2. Two passport size photographs
3. Proof of Identification : (any one)
 Pan Card
 Aadhar Card
 Driving License
 Passport
4. Proof of Residence: (any one)

 Electricity Bill
 Telephone Bill (Landline)
 Aadhar Card
 Driving License
 Passport
5. For Salaried Persons

 Original / Certified copy of the latest salary slips for the past 3 months
 Copies of IT returns of last 2 years duly acknowledged by IT Dept./IT assessment orders or
Form 16 for last 2 years from the Employer
 Undertaking from the employer for remittance of monthly installment, where ever
feasible
Page 66 of 159
 Bank Account (Salaried Account) Statement for the last 6 months (in case of other Bank)
6. For Non-Salaried Class/ Businessman/ Professional

 Latest 3 years Income Tax Returns (2 years in case of Professionals) including Computation
of Income, Profit and Loss Account, Balance Sheet, Audit Report etc.
 Shop Establishment Act
 Tax Registration Copy
 Company Registration License
 Bank Statement for past one year
7. Guarantor forms along with net worth proof /income proof (if applicable)
8. Guarantor's IT Return along with KYC Documents as mentioned in point No 3 & 4
9. In case of Takeover (Refinance):
a. Loan outstanding statement as on date
b. Loan account Statement for last 12 months
c. Documents Acknowledgement Receipt from Bank
10. ADDITIONAL DOCUMENTS FOR NRIs

 Copy of the employment Contract (if the contract is in any language other than English,
the same has to be translated into English and attested by Employer/ Indian Embassy)
 Copy of the Identity Card issued by the current Employer
 Continuous Discharge Certificate, if applicable
 Copy of latest work permit
 Copy of the Visa Stamped on the passport
 NRE Bank account passbook or statement of account
 Overseas Bank Account Statement for the last 6 months in which salary is credited
 A Salary certificate/income statement duly attested by our foreign office including
subsidiary office/ certified by the competent authority available in the country may be
produced. This may also include Chartered / Certified Accountants, Officials of Inland
Revenue dept. (similar to Income Tax Authorities in India) or any other agency specified
for the purpose. Where ever attestation is not possible, this may be submitted duly
notarized.
11. ADDITIONAL DOCUMENTS FOR PIOs

 A photocopy of the PIO Card or any of the under noted documents:-
 Current Passport indicating birth place in India/ Abroad
 Indian Passport, if held earlier
 Parents or grandparents passport with details there in substantiating his claim of being
PIO
Page 67 of 159
BANK OF MAHARASHTRA
NOTE ON PROPOSAL – HOUSING LOAN TO PUBLIC
CPTMS No.
Date of Receipt at Branch
Date of Receipt at CPC
Date of Receipt at Z.O.
A) Details of the Applicant
Name
Residential Address: Present
Residential Address: Permanent
Phone No / Mob. No.

PAN No
Aadhaar No.
Passport No. / Date of Issue / Valid up
to
Age / D.O.B
Marital Status
Qualification
Occupation
Name of the Employer / Nature of
Business & Address
Designation
No. of years in present service /
business
(Amount in Lakh)
Gross Annual Income Particulars Year – I Year – II
Salary / Income
Other Income, if any
Depreciation, if any
Gross Income [Total]
Above figures have been taken from the ITR / Form No. 16
of respective years.
Banking with us since
Details of existing credit facilities, if any (Amount in Lakh)

Date of Nature of Amount Present Overdue,
Sanction Facility of Outstanding if any
Facility Bal.
Page 68 of 159
Other Deposit Details (Amount in Lakh)
Type Account Date of Amount Date of
No. Issue Maturity
Total
A1) Details of the Co-Applicant I:

Name
Relationship with the applicant
Phone No. / Mob. No.

Email
PAN No.
Passport No. / Date of Issue / Valid up
to
Aadhaar No.
Age / D.O.B
Marital Status
Qualification
Occupation
Business & Address
(Amount in Lakh)
Salary / Income
Gross Income [Total]
Above figures have been taken from the ITR / Form No. 16
of respective years.
Other deposit details (Amount in Lakh)
Type Account No. Date of Amount Date of
Issue Maturity
Total
Details of existing credit facilities, if any (Amount in Lakh)
Date of Nature of Amount of Present Overdue,
Sanction Facility Facility Outstanding if any
Bal.
Page 69 of 159
A 2) Details of Co-applicant II:
Name
Relationship with the Applicant
Phone No. / Mob. No.

PAN No.
Passport No. / Date of Issue / valid
up to
Aadhaar No.
Email
Age / D.O.B
Marital Status
Qualification
Occupation
Business & Address
(Amount in Lakh)
Salary / Income
Total

Other deposit details (Amount in Lakh)
Type Account Date of Amount Date of
No. Issue Maturity
Total
Details of existing credit facilities, if (Amount in Lakh)
any Date of Nature of Amount of Present Overdue,
Sanction Facility Facility Outstanding if any
Bal.
B) Present Request
C) KYC norms complied Yes / No
D) Eligibility Compliance (Whether Yes / No
all the details in the application are
verified and found to be correct)
Page 70 of 159
E)-Details of Proposed Property:
Address of the Property

Area of Flat / House
Availability of Car
Parking
Name of the Developer
/ Builder / Promoter
Name of the seller (In
case of resale)
Property to be
registered in the name
of
Date of Sale
Agreement
Commencement
Certificate
NA Order
Details of sanctioned
plan
Completion Certificate
CERSAI Verification
Total Price of the flat / a). Cost of the Flat / House as per Rs.
house as per the Sale Agreement
agreement / Purchase b). i) Cost of the Plot Rs.
of plot & construction ii)Cost of Construction thereon Rs
there on c). Stamp duty Rs.
d). Registration charges Rs.
e). Other documentation charges Rs.
Total cost of the Project ( a+c+d+e or Rs.
b+c+d+e)
Valuation Particulars Remarks
Details of the
Property
Name of the
Panel Valuer
Date of
Valuation
Area of the flat /
house / plot
Valuation Rate
adopted
Valuation (Rs. Particulars Govt. Market Realizable Distress
In Lakh) Value Value Value Value
Flat / House
/ Plot
Total
Page 71 of 159
Search & Title Report Particulars Remarks
Name of the
Panel Advocate
Report Date
Opinion of the
Advocate
Status of the Project, Under construction / Ready possession:

Possession & RERA Proposed possession / completion date:
RERA Registration No.:
Other Information, if
any
F) – Income Criteria:
a). Assessment for Salaried Category Applicant

(Amount in Lakh)
Quantum of Finance Applicant Co-applicant I Co-applicant II Total
Gross monthly Salary
Rent Income
Total Gross monthly Income
Less Deductions (-)
Total Net Monthly Income
Eligible Loan Amount
i) 60 Times of Gross Monthly Income
ii) 75 Times of Net Monthly income
Eligible Amount of Loan (Higher of i
or ii)
b). Assessment for Business, Self Employed / Professional Applicant / Farmer:

(In case of farmers not filing IT return, income certificate issued by Tahsildar / Mandal
Revenue Officer / Revenue Department Officer having state level Gazetted rank can be
accepted)
Assessment Year Year-1 Year-2 Year-3 Total Average

Income: (Rs. In
Lakh)
Profit (As per ITR) / Income Not applicable in case of
certificate - In case of Farmer Farmer
Depreciation
*Exempt Income, if any
Total Income
5 Times of average Income
Eligible Amount for Loan
*(Exempt Income means Agri. Income, Dividend etc.)
Page 72 of 159
G) - Computation of Eligible Loan Amount:
(Amount in Lakh)
(1) Amount eligible as per income criteria Rs.
(2) Loan amount eligible as per deduction norms Rs.
(3) Loan amount requested Rs.
(4) Cost of Flat as per agreement (without GST) Rs.
(5) 75% / 80% / 90% of (4) above Rs.
(6) Lower of (1),(2),(3),(4) Rs.
(7) Eligible Loan amount as per margin Rs.
H) Repayment Capacity:
1) Gross Annual Income Rs.
2) Permissible Deductions – 60% / 65% /
Rs.
70% of Income
Existing Loan EMI
3) Existing Deductions, if any–
Others, if any
Total Deductions
4) Amount available for repayment of
Rs.
proposed loan (1-3)
5) EMI for Loan amount considered [G(6)]
(@______% for _____ months)
6) Quantum of loan based on amount
available for EMI [G6 * H5 / H4]
7) Loan amount – [G6 or H6, whichever is
lower]
8) Total Deductions including existing
Rs.
deductions
9) % of Deduction to Gross Income
10) EMI/NMI (%)
I) Security: Equitable / Registered Mortgage of Flat / House / Plot No. ________ located at _________
in the tehsil / district / state____________
J) Brief note:
K) Pre-Sanction Visit:
S. No. Parameter Branch / Visiting Official Remarks

1 Name of the Visiting Official/s
2 Date of Visit
3 Place of Visit
4 Purpose of Visit
5 Brief Remarks on construction
stage / visit
L) CIBIL Report:
Name of the Applicant/s CIBIL Transunion Score Personal Loan Score
Comments
Page 73 of 159
M) Entry Level Credit Risk Rating: (Applicable for Loans above Rs. 25.00 Lakh)
Component Weighted
Maximum Weighted
Parameters Weighted Score Rating
Score
Score Percentage
Housing Loan
Total
Overall Rating
(Credit Risk Evaluation Committee in its meeting held on ________ has approved ______ rating)
N) Due Diligence:
1. CIBIL Defaulters List (Suit filed accounts):
2. CIBIL Defaulters List (Non suit filed):
3. Central Fraud Registry:
4. CERSAI Search:
5. Verification of Index- II through IGR website:
O) Delegation of powers:
The Proposal falls within the Delegated Powers of _________________________________
P) Control & Monitoring: In respect of existing credit facilities if any

i) Non-Compliance of Terms and Conditions-
ii) Inspection and Audit Comments- Only Un-rectified comments to be stated.
Q) Recommendations : The proposal is recommended by Branch Manager, (Name of

Branch) and Based on the recommendation, the request is approved for the Housing Loan to (Name
of Borrower/s) on the following terms & conditions:
S. Nature of facility Term Loan

No.
i) Product Code
ii) BSR activity code
iii) Scheme Maha Super Housing Loan
iv) Name of the Applicant
v) Name of the Co-
applicant/s
vi) Amount of Facility Rs. _______________ (Amount in words)
vii) Purpose
viii) Category Priority /Non-Priority
ix) Security Registered / Equitable Mortgage of Residential Flat / House / Plot
_______ located at___________ tehsil / district /
state_____________
x) Margin ______% in Bank’s favor.
xi) Rate of Interest
xii) Tenure of Loan
xiii) Moratorium Period
xiv) Repayment Period
xv) Mode of Repayment EMI
xvi) Amount of EMI Rs._________ starting from ____________
Page 74 of 159
xvii) Processing Fees Rs.______ i.e. 0.25 % of loan amount + GST
xviii) Documentation Rs.______ i.e. 0.10 % of loan amount + GST
Charges
xix) Credit Information Rs. 50/- (Per Person) plus GST and it should be collected upfront
Report Charges
xx) CERSAI Charges ( Rs.____/- plus GST and it should be collected upfront
Cersai Search and
Cersai noting charges)
R) Other Terms & Conditions:
Pre-disbursement:
1 Sanction terms & conditions to be communicated to the borrower/s & his acknowledgement to be
obtained on copy of the sanction letter as token of having accepted all the terms & conditions of the
sanction.
2 Standing Instruction to deduct / recover the loan installment from the saving / current account to be
submitted.
3 The applicant shall give an irrevocable letter of undertaking not to sell, mortgage, charge or otherwise
encumber the property so long as he remain indebted to the Bank in respect of this loan.
4 Disbursement will be permitted only after compliance of all the terms & conditions of sanction and
after obtaining proper documentation.
5 For Housing Loan facility of Rs.50.00 Lakh & above, documents are to be got vetted by Law Officer /
Panel Advocate.
6 NOC from the Builder / Society for Mortgage of the property by the borrower shall be obtained.
7 In some cases, the under construction projects of the society / builder / promoters are financed by
some other bank / financial institutions and the land / flats are mortgaged to financing bank / FI. In
such cases, NOC / permission to mortgage from bank / FI to be obtained. This is addition to NOC
from society / builder / promoters.
8 Copy of the Sanctioned Plan by competent authority to be obtained & held on record.
9 Equitable / Registered Mortgage of the property has to be executed and stipulated guidelines of the
bank should be followed.
Post-Disbursement:
1 Mortgage charge on the property should be registered with appropriate Revenue Authority.
2 Fresh Encumbrance Certificate / Property Card / 7/12 and 8A extract (after mortgage registration)
indicating name of our bank/branch and the loan amount to be submitted.
3 CERSAI Registration is to be done within 30 days from date of Mortgage.
4 Branch has to ensure that the property is duly and properly insured against all risks such as
earthquake, fire, explosion, storm, cyclone, civil commotion etc. during the currency of the loan, with
BOM being made the sole beneficiary under the policy/policies. Branch should explore the possibility
of insurance cover under United India Insurance Co. Ltd / Future Generali India Insurance Co. Ltd.
Interest Conditions:
1 Rate of Interest is subject to change in MCLR and / or change in HO / RBI guidelines from time to
time without prior intimation.
2 Whenever there is increase in rate of interest, EMI will be increased so that the entire loan is repaid
within the stipulated repayment period. The consent from borrower/s has / have to be obtained for
such increase in EMI. Accordingly, EMI is to be recovered to avoid over dues/irregularity in the
account.
Page 75 of 159
3 In case at the time of periodic review of the account, if any overdue, in the Interest / principal is
observed, the same shall be payable by the borrower along with interest, immediately, over & above
the regular installments.
4 The delay in payment of Installment shall render the borrower liable to pay additional interest @ 2 %
p.a. (with monthly rest or such higher rate as per rules of the Bank and or RBI in that behalf as in force
from time to time). In such event, borrower shall be liable to pay incidental charges and cost to the
bank. This shall be in addition and without prejudice to the rights available to the Bank.
5 The additional interest as mentioned in (4) above, shall be calculated for the amount in default and
period of default, which shall be payable immediately, i.e. before the ensuing monthly Installments or
along with the ensuing monthly Installments.
Other Conditions:
1 Margin amount should be brought in by the applicants and Branch should ensure that the payment
along with the share of the applicants is ensured during disbursement.
2 Disbursement of loan in stages will be based on stage of construction / development certified by
appropriate authority, Architect certificate at various stages of construction of building certifying that
the construction of building is strictly as per sanctioned plan should be obtained.
3 DD / NEFT / RTGS to be issued in favor of the builders and receipt for the same should be obtained
and kept on record.
4 The borrower shall inform the Bank in writing about any change / loss of Job, business, profession (as
case may be) immediately after such change / loss, if any.
5 The amount of this loan has been fixed, inter alias, on the cost estimates / agreements submitted by
borrower/s. In the event of the cost actually incurred less, Bank reserves right to suitably reduce the
amount of the loan.
6 This letter of sanction shall stand revoked and cancelled and shall be absolutely null and void if
(a) there are any material changes in proposal for which this loan is, sanctioned;
(b) any material fact concerning income, net worth, or ability to repay, or any other relevant aspect of
your proposal or your application for loan is faulty, suppressed, concealed or not made known to us;
(c) any statement made in the loan application is found to be incorrect or untrue;
7 The EMI comprises principal and interest calculated on the basis of monthly rests at the applicable
rate and is rounded off.
Page 76 of 159
MAHA SUPER HOUSING LOAN SCHEME
MOST IMPORTANT TERMS & CONDITIONS (MITC)
Please read carefully before signing
ACKNOWLEDGEMENT FORM
1 Purpose for which the  For construction/acquiring of new or existing house/flat not older than 30
loan can be availed years
 For Purchase of residential flat under construction /ready directly from the
builders/ developers/society/other agencies/Development authority.
 For extension (additional construction) in the existing house/flat
 For purchase of plot and construction thereon
 For repairs/renovation/alteration of existing house/flat as new standalone
borrowers
 Takeover of existing Housing Loan accounts of the applicants under standard
category availed from other Banks / Housing Financial Institutions.
2 Eligible Applicant  Individuals in the age group of 21 - 65 years
Borrowers  Permanent Employees of Central/ State Govt./Public Sector Undertakings
(PSUs) (including Schools/ Colleges/ Educational Institutions),
 Individual Businessmen, professionals and Self-employed individuals
 Pensioners (only in case of Defense professional retired after short service
commission or having less than 60 years of age subject to having pension
account with us & sufficient disposable income), Farmers having minimum
land holding of 5 Acres of irrigated land and sufficient disposable income.
3 Income Criteria  Minimum Income of Rs.3.00 Lakh (last year income as per Salary slip / ITR /
Form 16 is required for Repair & Renovation of Existing House.
 For RLLR Housing Loan, minimum income of Rs.6.00 Lakh(last year income as
per Salary slip / ITR / Form 16 is required
 For all other purposes, there is no minimum income criteria
4 Margin & LTV Norms
Loan amount LTV Ratio Minimum Margin
Up to Rs.30.00 Lakh 90% 10%
Above Rs.30.00 Lakhs and 80% 20%
up to Rs.75.00 Lakhs
5 Moratorium Period
Construction of residential Maximum of 36 months from date of first
House & purchase of Flat disbursement.
under construction  However interest may be capitalized for a
maximum period of 18 months thereafter
Interest to be serviced as and when applied.
Purchase of New/Existing Maximum of 2 months from date of first
ready built house or Flat disbursement of Loan
Extension of existing Pre- Maximum of 18 months from date of first
owned Residential building disbursement,
Takeover of Housing Loan From the next month from the date of
disbursement.
Page 77 of 159
6 Security The loan will be secured by Equitable / Registered mortgage/extension of
mortgage of the land and building/flat for which the loan is to be sanctioned.
7 Rate of Interest For MCLR Based Loan: Interest on the loan will be charged at a fixed spread above
the 1 year Marginal Cost of Funds (MCLR) on a daily reducing balance at monthly
rests. The rate of interest is subject to reset at the end of every year from the date
of first disbursement of the loan on the basis of prevailing 1 year MCLR as on the
date of reset.
For RLLR Housing Loan: Interest on the loan will be charged at a fixed spread above
the REPO Linked Lending Rate (RLLR) on a daily reducing balance at monthly rests.
The rate of interest is subject to reset at the 1st day of next month whenever there
is revision in RLLR.
The Bank has the option to reduce or increase the EMI or extend the repayment
period or both consequent upon revision in interest rate.
8 Intimation of change in The borrower shall be deemed to have notice of changes in the rate of interest
Interest Rate whenever there are changes in interest rates where there is no change in MCLR
are either displayed on the Notice Board of the Branch or published in newspapers
or made through entries of the interest rate charged in the passbook/statement
of account furnished to the borrower or displayed on Bank’s website
(www.bankofmaharashtra.in) and the borrower is liable to pay such revised rate
of interest
9 Penal interest In the event of a default in payment or any irregularity in the account, the Bank
reserves the right to levy a higher rate of interest as it deems fit. Enhanced rate of
interest @2% p.a. on the irregular amount for the period of irregularity, over and
above the applicable rate will be charged if the Equated Monthly Installment (EMI)
remains unpaid, for any reason, including a bounced cheque.
10 Utilization of the loan The amount of the loan shall be utilized strictly for the purpose detailed in the
Application form and in the manner prescribed. The construction of the house/flat
or the modification/extension proposed by the borrower in the existing house/flat
should be strictly according to the plan approved by the Local Authorities/Town
Planning and Development authorities. Any modification desired in the plan as
originally approved, can be undertaken only after express sanction for it has been
obtained from the appropriate authority.
11 Insurance The house/flat purchased/constructed with Bank’s finance should be insured
against the all type of risks (fire/riots/earthquakes/lightning/ floods etc.) in the
joint names of the borrower and the Bank for the actual valuation of the property
after netting off the cost of land (including undivided share of land in case of flats),
cost of stamp duty and registration charges. Cost of the same shall be borne by the
borrower.
Applicant is also having the option to avail Life Insurance. The premium for the
optional Loan Life Insurance cover (if availed) may also be added to the loan
amount.
12 Inspection The Bank will have the right to inspect the property, at all reasonable times, by an
officer of the Bank or a qualified auditor or a Panel Engineer or jointly by all as
decided by the Bank.
13 Guarantor In case default by the Borrower, Guarantor shall be liable to pay the outstanding
due amount / loan amount.
Page 78 of 159
14 Processing fee, Document Processing Fee @ 0.25% of sanctioned amount excluding GST (Min Rs.1000/- &
and Other charges Max Rs.25000/-) and Documentation charges @ 0.10% of sanctioned amount
excluding GST (Max Rs.10000/-)
No prepayment charges on floating rate housing loans.

15 Other Fee/Charges
Particulars Fee Amount
Legal Opinion & Search Report Rs.
Valuation Fee Rs.
Other Fee ___________ Rs.
Total Rs.
Fees and Charges are subject to change from time to time at the sole discretion of
Bank.
16 Sanction & Disbursement: The loan will be disbursed only on the following conditions:
1. All the security documents prescribed have been executed by applicant/co-
applicant (s)/ guarantor/s
2. A valid mortgage (equitable or registered if equitable mortgage is not possible)
has been created in favor of the Bank as per the laws of the State.
3. Wherever creation of mortgage is likely to be delayed for any valid reason,
suitable security including third party guarantee, has been taken for the
interim period.
4. The loan will be disbursed in stages where a loan for construction is desired or
purchase is through payment to seller in installments.
5. All necessary statutory compliances are in place.
Bank of Maharashtra may disburse the quantum of loan in lump sum or in

instalments at its own discretion depending on the level of construction of the
House/Flat as acceptable to Bank.
BOM will disburse loan amount directly to the builder/seller/society as the case
may be and as requested / specified/ directed by the customer at the time of each
disbursement. Bank shall not be responsible / liable in any manner whatsoever for
any delay by the customer in providing such request/ specification/ direction and
the customer shall not claim any costs, charges and expenses in any relation to any
non-disbursal by the Bank due to any such delay by the customer. The Bank
reserves the right to collect any tax, if levied by the State/Central Government
and/or other Authorities in respect of this transaction.
17 Repayment: The loan is to be repaid in Equated Monthly Installments over the tenure of the
loan. The repayment installment commences from a date specified in the sanction
letter. The liability to the bank will be extinguished only when the outstanding in
the loan account becomes Nil, on payment of residual amount, if any.
Maximum Repayment period is 30 years (20 years in case of Repair & Renovation)
or up to the age of 75 years (the age by which the loan should be fully repaid) of
the borrower, whichever is earlier.
18 Customer Service For any service related issue, customer can get in touch with BOM:
 Calling Customer Help Line Numbers 18002334526,18001022636
 Contact Customer Grievance Cell at our Zonal Offices
 Write to Grievance cell at our Zonal Offices
Page 79 of 159
(Details on Help line Numbers and Grievance Cell available on
www.bankofmaharashtra.in )
In case a customer is not satisfied with the handling of grievance by the Zonal
Office, a communication may be sent ( enclosing the message sent earlier to Zonal
Office) to the -
Assistant General Manager (Customer Service),
Customer Service Department, Bank of Maharashtra;
Janamangal, 1177, Bajirao Road,
Budhwar Peth
Pune-411002
Telephone No. (020) 24506301 / 24506220
Email address: agmcustomerservice@mahabank.co.in
19 Disclosure Bank of Maharashtra is authorized to disclose, from time to time, any information
relating to the loan to any credit bureau (Existing or Future) approved by
Government of India and Reserve Bank of India without any notice to the
borrower. Bank of Maharashtra is also authorized to make inquiries with the Credit
Information Companies and get the applicants Credit Information Report.
The above terms and conditions have been read by me/us / read over to me / us and have been understood by me
/ us. I / We have received a copy of the MITC and has appended my / our signature(s) / thumb impression to this
document of my / our free consent and volition in sound state of mind after understanding the terms and
conditions mentioned herein, under the Loan Documents and the Sanction Letter.
Signature of the Applicant Signature of the Co-Applicant/s
Name: Name:
Signature of the Guarantor/s
Name
Signature of Branch Head / Authorized Officer
Name and Designation
Date:
Place:
Page 80 of 159
Annexure 10
Equitable Mortgage Register & Title Deed Movement Register
Bank of Maharashtra
Register for Title Deeds
Sl Name of Name of Credit Details List of Date of Sign Date of Sign of Remarks
No Borrower Mortgagor facilities of original Deposit of BM return of Mortgagor
& A/c & Amt. property title or Title
No. deeds Officer deeds to
Mortgagor
TITLE DEED MOVEMENT REGISTER
Sr. No Branch Name of List of Date & Time Purpose Sign of Date & time Sign of
Account Title when the for which BM or when Title BM or
Deeds Title deeds Title Officer deeds kept Officer
are taken out deeds are in cupboard
taken out
Page 81 of 159
Annexure-11.1
LIST OF DOCUMENTS (XEROX COPY) REQUIRED FOR ESTABLISHING TIE-UP

ARRANGEMENT IN RESPECT OF HOUSING PROJECT
1. Covering letter from sourcing entity. i.e., Branch/CPC forwarding the file of APF
mentioning clearly the Name, Phone No., Designation and Email ID of the Relationship
Manager of the Project.
2. Builder Profile as per Annexure-II
3. Self-Attested Copy of pan card of the firm and all Partners of the Firm/of the company
and of all Directors of the Company
4. Name, contact number and PAN card of Marketing Associate who can be individual or
non-individual
5. Copy of rating from CRISIL/ICRA etc., if applicable
6. Copy of membership of industry body like MCHI, CREDAI, or copy of ISO certification, if
any
7. Partnership Deed/Memorandum & Article of Association, whichever applicable
8. NOTARIZED Affidavit as per Attached Format on non-Judicial Stamp paper of requisite
value as per stamp act of states
9. Opinion Report in respect of Bankers who enjoy credit facilities with other Banks (will be
obtained by our Bank from the Builder’s Bank) (As per Annexure No. VIII)
10. If Builder has availed of any Project Loan, then a copy of Indenture of Mortgage
11. A letter from Chartered Accountant certifying stipulated stake of the Builder (minimum
15% ) in the Project(As per Annexure-V)
12. Relevant 7/12 Extract/Property Card
13. Deed of Conveyance/Development Agreement/Agreement with slum dwellers along with
Registration Receipt in case of SRA project /Mutation Entries/Revenue Receipt & Index II
(whichever is applicable)
14. Development permission (IOD) issued by Appropriate Authority (CIDCO, SRA, TMC,
MCGM etc.)
15. Commencement Certificate
16. N.A. Order (permission)/ N.A. Tax paid receipt
17. Environment Clearance Certificate, Pollution NOC, Aviation NOC, Fire NOC if applicable/
Urban Land Ceiling Certificate
18. Copies of approved plans (attested by Architect) (Hard copy & soft Copy)/Area
statements to be issued by Valuers
19. Draft copy of Sale Agreement/Agreement of Sale
20. Certified copies of Power of Attorney and the Board Resolution to that effect and also a
letter confirming that it is still in force and has not been rescinded, modified or withdrawn
21. Certificate issued by Architect stating status of IOD/CC and status of work progress
22. Title Certificate issued by Builder’s Advocate
23. Site Inspection Report by our Official
24. Detail flat-wise statement of carpet and saleable area
25. Copy of RERA Registration
26. Details of Project Specific Escrow A/c as per the guidelines of RERA
Page 82 of 159
Annexure-11.2
LETTER FROM THE BUILDER FOR PROJECT TIE UP
(On Letter Head)
The CPC Retail In-charge

Bank of Maharashtra,
Zonal Office, ______ City
Dear Sir,
REQUEST FOR TIE-UP ARRANGEMENTFOR PROJECT:
We M/s,
_____________________________________________________________________ a
Company/ Firm, having its registered office at
______________________________________ are willing to enter into a Tie up
arrangement with your Bank for our Project ________________
__________________________________________________________________ situated
at
(Address)_________________________________________________________________
______________________________________________________________________
Yours faithfully,
Authorized Signatory
(Name of the Builder)
Page 83 of 159
INFORMATION FOR TIE UP REQUIRED FROM BUILDER ON THEIR LETTER HEAD
Sr. Parameter Particulars

No.
1 Name of the Builder
2 Registered Address
3 Address for correspondence
4 Contact Person
Name,
Mob.No.
Email id
4a Whether Builder/His nominee is Yes/No
proposed to be engaged as
Marketing Associate? If Yes,
Please specify the name &
Designation
Name of the Marketing Associates
5 Website url, if any
6 Date of establishment
7 Constitution
8 If members of an Industry Body

like Builder’s Association etc.
names of such bodies like
MCHI,CREDAI/ISO certification
9 Ratings from CRISIL/ICRA etc.
10 Profile of the partners/directors
Sr. Name Age Qualifications Comments on his/her
No experience, area of
expertise etc.
11 Details of last two/ three residential projects executed by the same

firm/company/promoters
Project Name
Location
Whether approved by BOM?
If approved by Housing Finance
Company like SBI/HDFC/LIC HF
Page 84 of 159
etc. and/or Schedule
Commercial Bank, furnish
names of HFCs/Banks
Month & Year of
Commencement of Construction
Present Status Completed on Completed on Completed on

(Completed/Partially completed) ____________ ____________ ____________
(Month& Year) (Month& Year) (Month& Year)
___Phases ___Phases ___Phases

completed. Full completed. Full completed. Full
completion completion completion expected
expected by expected by by
(Month& Year) (Month& Year) (Month& Year)

Total built up area of
the project, in Sq.Mtr.
Number of floors
No. of Dwelling Units in

the project
No. of units sold in the
project
Hsg.Loan taken
Through BOM (No.of flats)
Date of Occupancy
Certificate
Date of conveyance
12 Details of the Present Project

Project Name
Location with Survey Nos.

Details of construction finance /
loan, if any, availed by the
builder for this project. (Note : If
construction finance is provided
by the BOM, then the project will
stand Automatically approved.
Status of encumbrance
of the project land
If approved by Housing
Finance Company like
SBI/HDFC/LIC HF etc, and/or
Scheduled Commercial Bank,
furnish names of HFCs/Banks
Month & Year of
Commencement of
Construction
Proposed construction Plan.
(Please furnish details of No. of
phases, No. of buildings in each
Page 85 of 159
phase, No. of floors, No. of
dwelling Units in each building.
Planned Schedule of completion
of each building, phase, Project.)
Total built up area of
the project, in Sq. Mt.
No. of Dwelling Units in the
project
No. of units sold in the project
Details of Development
Agreement and POA if any
Status of receipt of
approvals from Local
Bodies/ Urban
Development Authority
13 Project Value
Type of Flat/House No. of Average price per Total
Flats/House flat/house
Total Project Value Rs.

a. Whether Project has been (Yes/No)
registered under RERA
b. If yes, specify RERA registration number:

Date of registration :
c. If No, specify reasons
RERA Escrow Account details
Tentative Date of Project Completion
Proposed Construction Plan (Please
furnish details of No of phases, No of
Building in each phase, No of Dwelling
unit in each building, plan schedule of
completion of each building, phase,
project)
Number of Floors
Total Project Cost
Amount Already Invested
14.Whether credit facility enjoyed Bank
With any bank Branch
A/c No.
15. Disbursement to be made in favor
of
Account Name:
Account Number :
Bank / Branch :
IFSC code
Signature with stamp of Authorized person
Page 86 of 159
(Undertaking on your letter head) Annexure-11.3
The Assistant General Manager/ Chief Manager

CPC Retail,
_______ Zone
______ City
Sub: Builder Tie up of project …...............................
With reference to above, we are willing for tie up with your Bank for sanction of home loan to
purchasers of flats at______________. We confirm the following:
1. The title deeds in favor of the purchaser of the flat will be directly delivered to the Bank.
No-objection Certificate (NOC) from the Bank will be insisted upon before cancellation
of Sale Agreement and refund of payment(s) received there under.
2. Bank’s security interest will be conveyed to the society, if any, proposed to be formed
after completion of construction, for noting Bank’s charge in the Society’s records.
3. We shall complete the captioned project within ------------- months i.e.

before……………
4. Our track record can be verified from the following recently completed projects:
Name of the project I Date of commencement I Date of completion
5. Our stake in the project is more than 15% which can be verified from the chartered
accountant certificate enclosed
6. There is no known legal case of significant nature like default to some other Bank, land
misappropriation and large tax evasion, statutory tax liability due etc. initiated or
pending as on date with any authority.
7. We are willing to enter into Tripartite Agreement with the Bank & Borrower.
8. The Construction of the project will/is carried out as per layout plan approved by
development Authority.
9. We are in possession of all mandatory legal clearance under various extant builder
laws and other legal enactment except……………….. for which we have applied for
to competent authority.
Yours faithfully,
Page 87 of 159
Annexure-11.4
(Stamp Paper as per Stamp act of State)
AFFIDAVIT-CUM-DECLARATION
I/We Proprietor / Partners / Directors of M/s. (Name of the Firm/Group), having its Office at
_________________________________________________________________________
_______________________________________________________________________
1.
2.
3.
4.
5.
Do hereby declare on oath and solemn affirmation as under:
I/We state and declare that the property bearing Survey No. ______________
admeasuring
______________ (Details of the adm area) _____________________being and lying at

Village ______________ Tal. ____________ District ____________State_____________.
is having clean, clear and marketable title and is free from all encumbrances of whatsoever
nature [hereinafter referred to as the said land property]
I/We state and declare that I/we am/are constructing buildings consisting of various flats and
row houses under Housing Project named as “_________________” on the said land and that
I/we have not availed any Project Loan from any Bank, Financial Institution, Pat Sanstha, or
Person, for purchase of the said land or for construction of buildings on the said property and
that the title of the flats and row houses constructed on the said property is clean, clear and
marketable to give first charge to Bank of Maharashtra.
OR
Page 88 of 159
I/We state and declare that I/we am/are constructing buildings consisting of various flats and/or
row houses under Housing
Project named as “_________________” on the said land and declare that I/we have availed
Project Loan of Rs ___________________, [Rupees
_______________________________________only from __________________________
_________________________________________________________________________
___
_____________________________________________________________________
[here mention name, address and account number of bank, if Project Loan is obtained, give
details] and we hereby undertake to obtain the NOC from the said Bank for creating first
mortgage charge on the flats financed by Bank of Maharashtra. [Delete if not applicable]
I/We further state that I/we have not received any notice of acquisition or requisition in respect
of the said land from the Government and Public Land Acquisition Authorities till date, nor any
litigation is pending in the court. Hence the said property is not subject to any litigation,
acquisition or requisition as on today.
I/We state that the contents stated in this affidavit are true and correct to the best of my/our
knowledge, belief and information and I/we swear this affidavit today on this _______ day of
__________, 2017.
I know Affiants
Notary Affiants
Date:
Place:
Page 89 of 159
On C.A.’s letter head Annexure-11.5
CERTIFICATE
To whomsoever it may concern
Builder/ Developers Name …………………, one of the reputed builders is developing/

constructing a project …………………. (Name) Located at …………………….. (Address)
The details of the project are as follows:
1. Total cost of the project…………….
Land Cost…………………..
Construction Cost………….
2. Already invested amount in the project by builder/ Developer…………..
3. Amount yet to be invested……………
4. Percentage of investment till date………….
Therefore it is certified that ……………… (Builder name) holds more than 15% stake in
above project.
Chartered Accountant
Place:
Date:
Page 90 of 159
Annexure-‘A’
The Assistant General Manager/ Chief Manager
CPC Retail
______ Zone
______ City
Dear Sir,
REQUEST FOR TIE-UP ARRANGEMENTS FOR PROJECT: ------------------------
We M/s------------------------------------------, a Company/Firm, having its registered office at ------

------------------------------------- are willing to enter into a Tie-up arrangement with your Bank for
our Project-------------------------------------------, situated at (address) ------------------------------------
----------.
2. On approval of the Tie-up, we undertake to execute a Tripartite Agreement with the Bank
and the Borrower on the format approved by the Bank, agreeing to
(a) Deliver the Title Deeds in favor of the purchaser of the flat directly to the Bank,
(b) Insist on No-objection Certificate (NOC) from the Bank before cancellation of the
Agreement of Sale and refund of payment(s) received, and
(c) To convey Bank’s security interest to the existing/proposed Society for noting Bank’s
charge in its records.
Yours faithfully,
Page 91 of 159
On Bank’s Letter Head Annexure-11.6
Ref. No: Date:
Builder’s Communication address APF

No.
Sir/ Madam,
Sub: Approval of Housing Project in “Name of the Project” developed by you. Project location:
_____________________________________________________________“(to be filled in
Detail) “with land extent of _______________ areas.
.
Please refer to your proposal for approval of housing project “Name of the Project”, submitted
through our __________ Branch/Office. We thank you for the cooperation extended by you in
the process of approval of the above housing project
We are glad to inform you that our competent authority has accorded approval to your above
project for the purpose of considering Home loans to the prospective buyers intending to buy
residential flats in your esteemed project. The approval is accorded subject to, following terms
and conditions:
1. This approval in effect shall enable the prospective buyers to apply for housing
loans with any of the branches of Bank of Maharashtra. It shall be at the sole
discretion of our Bank, the appraisal of each loan application and credit decision
strictly on merits.
2. As the title of the project land is scrutinized by our panel advocate, only
supplementary legal opinion is to be obtained for the individual flats
3. The developer shall provide the following documents to the loan applicants for
applying for Home loan.
a) Allotment letter/ Registered Sale Agreement/ Registered Construction Agreement
as the case may be, duly vetted by our panel advocate, in favor of each buyer.
b) Up to date EC of the project land from date of approval
c) Copies of the property documents of the project land along with Approved building
Plan
4. The Developer shall permit display of our hoardings reading “This project is
approved by Bank of Maharashtra" at the project site.
5. Tripartite agreement between the builder, applicant and bank approved format as
the builder has accepted for., registration of UDS on payment on booking.
6. The builder shall ensure that the constructions of the total project building conform
to the sanctioned plan and building laws without any deviations and that the quality
of construction and specifications are maintained.
7. The builder shall ensure that the project is got regularized for assessment of tax
and also obtain occupancy certificate when the project is complete.
8. In granting project approval to the project, Bank of Maharashtra assumes no
responsibility in regard to rights and liabilities contractual or other wise of the land
owner and the builder and the intending purchaser in regard to their respective
obligations. By this approval the Bank does not give any opinion on the project or
related parties / aspects.
9. Before making any purchase decision or entering into any agreement with respect
to any property in the said project, the intending purchasers are advised to take their
Page 92 of 159
own due diligence verifications regarding legal documents, clear title to the property,
construction quality, technical specifications, conformity of the project to relevant
statutory regulations and approvals, previous track record and reputation of the
builder / developer etc. Bank of Maharashtra will not entertain any claim on losses
financial or otherwise incurred by anybody on the said property due to any reason
whatsoever.
10. We request you to execute a simple letter of undertaking agreeing to
a) deliver the title deeds in favor of the purchaser of the flat directly to the Bank
b) Insist on NO-Objection Certificate(NOC) from the Bank before cancellation of
Sale Agreement and refund of payment(s) received there under and
c) To convey completion of construction for noting Bank's charge in the Society's
records for every sale transaction.
11. Details of the Housing Project

Project’s Name & Address
Nature of Individual Units
Number of Units
Number of Blocks/ Floors
Building Plan approval details
12. The project has been properly valued by our panel Valuers/ engineers Mr.
____________.
13. Loan will be disbursed through prospective buyer in stages after he brings the
margin money in initial installment or else pro rata margin should be brought in
each stage disbursals.
We look forward to work together with you in promoting the project for mutual benefit. The
intending buyers may also contact the nearest branch of Bank of Maharashtra for their home
loan requirement.
Yours’ sincerely
Page 93 of 159
Annexure
Disclaimer has to be invariably displayed at Website/ Notice Board for Customer in

general
Disclaimer:
Tie up arrangements are made by the Bank at its sole discretion in respect of specific projects
of specified builders, considering the title investigation/valuation report of such projects and
satisfying such other particulars in respect of such projects. Tie-up arrangements are aimed
to speed up the delivery process of loans by avoiding duplication of certain works in respect
of the processing of loan applications in respect of the units in such projects. While, nobody
can claim their project to be tied-up with the Bank as a matter of right, it is also to be noted
that the tie-up in a project do not mean tie up in respect of any other project/extensions of the
project of the same builder.
The Bank does not give any assurance in respect of the tie up projects including the merits of
the project, such as its facilities, period of completion, price, regulatory approvals, quality of
construction, other amenities, etc. or any attribution to the builders of such tied up projects
and expressly disclaims any liability in this regard. Customers are advised to make
independent and discreet inquiry into such projects and satisfy themselves on the credentials
of the project before taking any decision to involve/invest into such project. The Bank shall,
under no circumstances be responsible for any dispute between the customer/builder/third
party arising out of such involvement/investment/purchase of units in a tie up project.
Whether or not to sanction a loan to any person who intends to acquire unit(s) in a tie up
project is a commercial decision of the Bank and tie up arrangement has no bearing on such
decision. Sanction of a loan shall be purely on merits and as per Bank's guidelines from time
to time in this regard. Please note that neither the builder nor any person who acquires or
decides to acquire any unit(s) in a tie up project shall have any right or claim against the bank
in respect of such projects.
(The list displayed here is not exhaustive. To know more about current/ ongoing
projects under tie-up, please contact your nearest Branch)
Page 94 of 159
Annexure- 11.7
Date:
Sir,
Sub: - Confidential report about

…………………………………………………………………………..
******
The captioned company/party has approached the Bank for a business

relationships/Residential project approval / of their residential project situated at
……………………………………………………………………. . In the application form your
name has been given as a Principal Banker.
So, kindly intimate us about the dealings with your Bank and details of loans availed and
arrears if any in the loan accounts etc.
We would like to inform you that any information disclosed by you will be kept in strict
confidence and if a similar occasion arises, we will reciprocate the same.
Yours faithfully,
Place:
Date: CHIEF MANAGER/BRANCH MANAGER.
Page 95 of 159
Please attach to the form a confidential credit report from your principal banker placed in a
sealed envelope. This credit report should be in the following format:
Bank’s Letter Head
STRICTLY PRIVATE AND CONFIDENTIAL
1. Name and Address of the concern :
2. Constitution :
3. Name of Chief Promoter & Co- :

obligant
4. Nature of Account/Loans :
5. Banking with us since :
6. Business/Line of activity :
7. Experience as to their dealings :
8. Asset Classification : Std/Sub :

std/Doubtful
9. Loan's sanctioned (…. /…../…) :
Amount :
Page 96 of 159
10 Arrears as on date :
11 Balance outstanding as on date :

.
12 Remarks :
Note: The information is furnished without any responsibility on the part of the reporting bank
and information should not be furnished to third parties ascribing the source to the reporting
bank
Page 97 of 159
Tripartite Agreement between Borrower, Builder and Bank Annexure-12.1
(This document is to be executed on Non-Judicial stamp paper as per the applicable stamp
duty prevalent in the executing state and be got signed by the respective parties by the Officer
of Bank in his presence)
TRIPARTITE AGREEMENT
THIS AGREEMENT IS MADE on this ___________ day of _________, 2019_______

between Shri / Smt. / Ms. __________________ son of / wife of / daughter of
Shri.__________________________, resident of _______________ (Name and Address of
the Borrower), hereinafter referred to as the ‘Borrower/buyer’, which term shall unless
repugnant to the context shall mean and include his / her heirs, representatives, successors,
executors, attorneys, administrators and assigns), of the First Part.
AND
Mr. /M/s …………………………………….. (Name of Builder), an individual/ a partnership /LLP/

Company incorporated under the provisions of the Companies Act, 1956, having its
Registered Office at ________________ through its authorized signatories duly authorized by
the Board of Directors, hereinafter referred as “Builder” shall unless repugnant to the context
shall mean and include its successors, administrators and assigns), of the Second Part.
AND
Bank of Maharashtra, a body corporate, constituted under the Banking Companies

(Acquisition & Transfer & Undertaking) Act, 1970, having amongst others one of its Branch
Office at ___________________________ (Name and Address of Branch), hereinafter
referred to as the ‘BOM’ which term shall unless repugnant to the context shall mean and
include its successors, administrators and assigns) of the Third Part.
WHEREAS, the Party at the Second Part having clear marketable title has been authorized
for the construction of residential units / flats at
…………………………………………………………………………. (Location of the site). The
Party at the Second Part (i.e. Builder) has already received the possession of the above-said
plot. The building plans have already been approved by the ……………….. Authority and the
construction of the residential units / flats in the name……………… (Name of apartment
building) is in progress.
AND WHEREAS the party at the Second Part will complete the construction of the flats as
described in the Flat Buyer Agreement dully executed between First and Second Party on
……………………….and the Second Party is booking the sale of the flats. The proposed buyer
has to make the payment of the sale consideration as and when demanded by the Second
Party (i.e. Builder) as per the terms of the Flat Buyer Agreement, and on the payment of the
entire sale consideration, the party at the second part shall hand over the possession of the
flat to the said proposed buyer.
Page 98 of 159
AND WHEREAS the party at the first part has booked a flat bearing No.______on ……..floor,
admeasuring _______ sq. ft., (hereinafter referred to as the said flat) in the building which the
party at the second part shall construct on the above said plot and the party at the first part
has to pay the entire consideration amount in the mode as described in the Flat Buyer
Agreement dated……………, duly executed between First and Second Parties.
AND WHEREAS the party at the First Part has approached the party at the Third Part for
availing a loan of Rs._________ (Rupees ____________ only) to finance the purchase of the
said flat. Besides other securities, the party at the First part has agreed to create the charge
over the said flat in favor of the party at the Third Part. In the absence of proper apartment
Deed in its favor, the Party at the First Part is not in a position to create a valid mortgage over
the said flat in favor of the party at the Third Part.
AND WHEREAS the party at the First Part and the Party at the Second Part have requested
the BOM to disburse the said loan to the Borrower, notwithstanding the fact that the apartment
Sale Deed is not executed in favor of the Party at the First Part at this stage, and in
consideration of the BOM sanctioning the loan to the Borrower, the Borrower and the Builder
have executed this Agreement on the following terms and conditions.
NOW THEREFORE IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES HERETO

AS FOLLOWS:
1. That the Borrower hereby irrevocably request and authorize the Third party BOM to make
the disbursement of the sanctioned loan to the Builder directly on borrower’s behalf and
any payments so made to the builder shall be deemed to be payments made to the
borrower and the borrower shall in each case be liable for the amount of loan disbursed
by BOM on his/her behalf to the builder as though the same has been disbursed directly
to borrower.
2. That the BOM has and shall have the first and paramount lien over the money already paid
by the Borrower to the Builder/developer and or whatever amount the Borrower shall pay
to the Builder in future for the due repayment of the loan which the BOM shall grant to the
Borrower. The charge in favor of BOM shall be first and paramount over the charge, which
the Builder may have over the said flat.
3. That the Builder agrees that it has no objection to the Borrower mortgaging the said flat to
the BOM as security for the said loan agreed to be advanced by the BOM for the purpose
of purchase of the said flat. In the event of default in the repayment of loan and or the
Borrower committing any other default which makes the Borrower liable for the repayment
of the entire amount outstanding in the said loan as per the terms of the Loan Agreement
executed between the Borrower and the BOM, the Builder shall at the call of BOM, be
under obligation to cancel the booking and pay all the amounts received by the Builder
from the Borrower or on behalf of the Borrower to the BOM.
4. That if for any reason there is any increase / escalation in the cost of the said flat the
increase shall be paid and borne by the Borrower without any reference to the BOM and
Page 99 of 159
until such payment is made, the BOM shall have the right to suspend further disbursement
of the said loan.
5. That in the event of the Builder canceling the said booking for any default committed by
the Borrower or the project is shelved by the Builder or for any other reason whatsoever,
the Builder shall pay the entire amount received from the Borrower to the BOM.
6. That in the event of failure of the Builder to complete the project, the Builder shall pay the
entire money so received by it from the Borrower to the BOM.
7. That the Builder shall note in its records the charge and lien of BOM over the said flat and
parking space allotted. The Builder shall not transfer the said flat to any other person
without the prior written consent of the BOM.
8. That on the receipt of the entire consideration amount, the Builder shall execute a proper
Apartment Deed /conveyance deed/Sale deed in favor of the Borrower. The Builder
undertakes to deliver the same directly to the BOM and not to the Borrower. Before the
execution of the Apartment Deed/ conveyance deed/Sale deed, the builder shall inform
the BOM about the same on the completion of the project.
9. That the Borrower shall also keep informed the BOM about the developments in the project
from time to time. The Borrower shall notify the BOM the date of taking over the possession
of the said flat. In case the Borrower receives the Apartment Deed/ conveyance deed/Sale
deed, he / she shall immediately deposit the same with the BOM.
10. That the Borrower assures that he / she will not further mortgage / charge the said flat to
be allotted to him / her in any manner whatsoever to any other person/institution before
the loan of BOM is cleared.
11. That the Borrower agrees and authorize the Builder to note the charge of BOM on the said
property in their records as a security against the loan advanced by BOM and further
authorize the Builder to send the registered sale deed directly to BOM for the creation of
the mortgage in favor of BOM on the said property, to be held by BOM until the loan is fully
repaid with interest and all other dues to the satisfaction of BOM.
12. That the Borrower shall pay all charges, duties, taxes in respect of the said flat imposed
or payable to the Builder and or the statutory Authority or any other Government
Department / authority in respect of the said flat and the BOM shall not be liable or
responsible in any manner whatsoever or howsoever for the same.
13. That the Borrower agrees and acknowledges to keep the BOM indemnified against any
loss or damage incurred by it in the event of failure of the Borrower to honor or meet any
of its obligations under this Agreement in connection with the sanctioning of the loan in
respect of the said flat.
14. That during the currency of the loan, the Borrower shall not transfer the said flat to any
other person, without the prior written consent of the BOM. The Builder shall not issue the
Page 100 of 159

duplicate allotment letter / possession letter to the Borrower without the prior written
consent of the BOM.
15. That in the event of any default by the Borrower, the BOM may at its discretion enforce the
security by sale and the Builder shall accept the Purchaser of the said flat in place of the
Borrower, after the Purchaser complied with the necessary requirements of the Builder in
this respect. The Builder agrees that the purchaser shall enjoy the same rights as the
borrower.
16. That the Builder assures the BOM that the construction shall be completed as per schedule
and as per the sanctioned plans and on completion of construction, the title of the flat shall
be conveyed in the name of the Borrower.
17. That it is further made clear and understood by all the parties that the non-completion of
the project or the happening of any event shall not affect the obligations of the Borrower
to repay the loan availed from the BOM.
18. That the said flat is free from all encumbrances, charges, liens, lis-pendence, attachments,
trusts, prior agreements, whatsoever or howsoever. However, there is the first charge of
the …………………………… on the project and the Builder has provided or will provide
the NOC, from the competent Authority of ……………. in case any charge is created on
the project thus causing release of 1st charge in favor of BOM..
19. That there is no order of attachment by the Income Tax Authorities or Sales Tax Authority
or any other authority under any law for the time being in force nor any notice of acquisition
or requisition has been received by the Builder/Developer/Owner in respect of the said
Plot property and Flat.
20. That this Agreement shall not affect in any manner whatsoever the duties and obligations
of the Borrower and the terms and conditions agreed to by the Borrower in the Loan
Agreement and other documents executed in favor of BOM shall remain binding upon the
Borrower.
21. That in case of acquisition, forfeiture / resumption of the said property, the BOM shall be
entitled to get the compensation settled in respect of the said flat and to appear and act
before the Collector / Revenue Officer / Estate Officer or any other concerned authorities
to sign any form, to give any statement, affidavit, application on Borrower’s behalf, to
receive the compensation in its own name and on the Borrower’s behalf, to file appeal in
any court for the enhancement of the compensation amount, to get the compensation
amount enhanced and to receive the same.
22. That the Borrower had investigated about all the approvals and in case the project is
adversely affected due to non-clearance or sanction from any statutory authority then the
borrower is ready to bear that loss and will pay the entire dues of the Bank as applicable
on that date with up to date interest and penalties if any.
Page 101 of 159

23. That the Borrower/s as well as the Builder/developer have accepted that Bank reserves
the right to restrict the loan disbursement and such disbursement in restructured fashion
shall be permitted only in case of the projects with construction linked Plans (CLPs / Flexi
CLP) involving stage wise payment related to construction progress achieved by the
project as given in the loan sanction letter. Each disbursement shall be subject to the
following terms and conditions –
(i) The borrower / flat buyer accepts that statutory clearances (if any) are yet to be
received by the builder / developer having accepted the risk involved, in the project.
(ii) The borrower pays 20% or more of the agreed cost of the flat if required.
(iii) Bank shall be under no obligation to disburse further amount unless the statutory
clearances are received & stages of construction achieved.
In witness whereof the parties hereto have signed this Agreement on the day, month and year
first above written.
Witnesses: (BORROWER)
1.
2.
Witnesses: (BUILDER)
1.
2.
Witnesses: (BOM)
1.
2.
Page 102 of 159

Tripartite Agreement between Borrower, IRWO and Railway Annexure – 12.2
TRIPARTITE AGREEMENT FOR HOUSE BUILDING ADVANCE –

FIRST MORTGAGE
This Agreement made this ………………… day of ……………………. Two thousand

…………………. Between Shri/Ms ………………………… S/o / D/o / W/o
Shri………………………. Resident of ………………………………….. at present serving as
………………. Hereinafter called the ‘Borrower’ (which expression shall unless excluded by
or repugnant to the context be deemed to include his/her heirs, executors, administrators
and legal representatives) of the First Part
And Indian Railway Welfare Organisation, Railway Complex, Shivaji Bridge, New Delhi
(hereinafter termed as “IRWO” which terms shall unless repugnant to the context shall
include its successors, administrators & assignees) of the Second Part
And …………………………………Railway with its headquarters

at………………………………(which expression unless repugnant to the context shall
include its successors and assigns) of the Third Part.
WHEREAS the Borrowers desires to purchase a ready built flat/house of the IRWO under
its self-financing scheme (hereinafter referred to as the said scheme which envisages
allotment of ready-built house/flat after a period of ….. years and payment of the cost of
construction in instalments as mentioned in the brochure of the Scheme.
AND WHEREAS the Borrower has under the provisions of the rules framed by
Central Govt. to regulate the grant of advance to the employee of Central Govt. for Building
houses, etc. (hereinafter referred to as the said rules including any modifications thereof)
applied to the Govt. ………………………… for an advance of
Rs……………………………….. for purchase a house/flat under the
scheme and the Govt. ………………………………... has sanctioned an advance
of Rs…………………………… to the Borrower vide..…………………………. letter
No……………………….. Dated ……………… a copy of which is annexed to these presents
for the purpose aforesaid on the terms and conditions set forth therein.
In consideration of the sum of Rs. ……… (Rupees ………………………… already

deposited by the borrower as initial amount of registration deposit with the IRWO under the
Scheme for the purchase of a ready-built house/flat and the sum of Rs. ……………………..
(Rupees………………………………………..) (insert the amount of advance sanctioned to
be paid by the Govt). …………………………. directly to the IRWO on behalf of the
borrower, it is hereby Agreed to by and between the parties hereto as follows –
1) On the receipt of an assurance from the IRWO that house will be allotted to
the borrower herein, the amount of house building advance permissible will be
sanctioned to the borrower but the actual payment will be made to the authority as and
when demanded by them on pro-rata basis, calculated as under, consistent with the
progress of construction.
Page 103 of 159

Amount demanded
Amount of each instalment Total cost of flat (excluding the X Amount of House
of House Building Advance amount of initial deposit of Building Advance
Earnest Money) sanctioned.
The amount in excess of the amount of the house building advance permissible and
sanctioned to the borrower will be paid by the borrower to the IRWO directly so as to make
the payment to the ……………………………… in the manner as mentioned hereinbefore.
In case there is any delay in payment of the instalment by Govt. ……………… or the
borrower or any other default, in either case it will be treated as default on the part of the
borrower and consequence of such default will be borne by the borrower whose sole
responsibility it shall be to make all the payment.
2) The IRWO will maintain a separate account of the borrower and adjust the
payment of advance received by it from Govt against the cost of construction of
particular category of house/flat applied for by him.
3) On completion of the house/flat and subject to the fulfillment of the relevant

terms & conditions including those specified in paragraph……….. of the terms and
conditions given in the brochure, which is annexed to these presents, its possession
will be handed over to the borrower forthwith along with the title there to on lease/free
hold right basis who will mortgage the house/flat within …………….. days to
……………..as security for the said advance. He should also furnish all the necessary
certificates for the purpose of registration.
4) The cost of the house/flat, if in excess of the amount of house building advance
sanctioned will be borne and paid by the borrower.
5) The borrower is to repay to the Govt.………………. the said amount of

Rs……… (insert full amount sanctioned with paragraph 7 mentioned below) by
………………… .. (number of instalments to be filled in) monthly instalment of
Rs.…………………. from his pay commencing from the month of ……………………
Two thousand …………………. Or from the month following obtaining of the
possession of the house whichever is earlier and the Borrower hereby authorizes the
Govt. ……………….. to make such deduction from his monthly pay, leave salary and
subsistence allowance bills.
6) If the Borrower wants to withdraw from the scheme or fails to pay the balance
amount representing the difference between the house building advance sanctioned
by the Govt and the actual cost of the flat, or quits service of the Govt or dies, the
amount of the House Building Advance will be refunded forthwith to the Govt. The
amount of initial deposit of …………. will be refunded to the borrower or his legal
heirs, as the case may be, by the IRWO after deducting such amounts as may payable
by him as communicated in the brochure. Provided, however, in the event the
borrower quits the service of the Govt or dies, the IRWO may, in its absolute discretion
allow the borrower or his legal heirs if they choose so, as the case may be, to deposit
the amount refunded to the Govt as mentioned herein above on an undertaking by the
borrower or his legal heirs as the case may be, to pay such further sum or sums as
they have been payable by him under these presents to the IRWO.
Page 104 of 159

Provided further that in the event the borrower quits the service of the Govt. or dies, as the
case may be the terms of this agreement as applicable to the IRWO and the borrower shall
be deemed to continue and shall always be deemed to have been continued irrespective of
the fact that in relation to the Govt. this agreement has come to an enc.
7. The rates of interest on house building advance will be in with orders of the Govt. of
India issued in that regard from time to time.
8. THE stamp duty payable on these presents shall be borne by the Government
Servants.
IN WITNESS OF THE BORROWER HAS hereinto set his hand and

Shri……………………………………………… of the IRWO has hereinto set his hand and
Shri………………………………….. Secretary ……………… for and on behalf of the
President of India has hereinto set his hand.
(Signature of the Borrower)
1st Witness Address Occupation

2nd Witness Address Occupation
Signed by Shri……………………………….. of IRWO in the presence of
(For IRWO) 1.
2.
Signed by Shri ………………………….. in the Ministry / Office of …………………. ... for and
on behalf of the President of India.
………………………………………………….
( )
SCHEDULE OF THE PROPERTY
All that House/Flat No. ………………………………………………………….. Etc.
Page 105 of 159

Tripartite Agreement between Borrower, AWHO and Bank Annexure 12.3
THIS AGREEMENT made the ______day of __________ Two thousand _______

BETWEEN (1)________________________________________ S/O, W/O, D/O
______________________________________ and ______________________
________________ S/O, W/O, D/O _______________________________ aged
_____________years respectively both residing at ______________________
___________________________________________________________(hereinafter
called “BORROWER” his/her heirs, executors, administrators and legal
representatives) of the party of the FIRST PART,
(2) Army Welfare Housing Organisation a registered with the Registrar of

Societies, Delhi under the Societies Registration Act XXI of 1860 having its
registered office at South Hutments, Kashmir House, Rajaji Marg, New Delhi-
110011 (hereinafter called ‘The AWHO’ through its Managing Director or any
other officer authorized by him in his behalf which expression shall unless
repugnant to the subject or context or meaning thereof be deemed to
include its successors or assigns) as party of the SECOND PART, and
(3)__________________________________________________________________, a
Company registered under ________________having its registered office
________________________________________________________________________
hereafter called ‘The Company’ which expression shall unless repugnant to
the subject or contest or meaning thereof be deemed to include its
successors and assigns) as party of the THIRD PART.
WHEREAS the Borrower desires to purchase a flat from the AWHO under the
provisions of its Self-Financing Scheme (hereinafter referred to ‘as the
Scheme’), a copy of the letter of allocation issued to the Borrower by the
AWHO along with the terms and conditions of allotment is annexed in this
agreement which envisages allotment to applicants of such flats constructed
under the Scheme (hereinafter referred to as the flat) and payment by the
applicants towards the cost of construction and proportionate cost of land
thereof to the AWHO in installments/ lump sum in the manner provided under
the terms of allotment.
AND WHEREAS the Borrower has under the provisions of the Self Financing
Scheme framed by the Company has applied to the Company for a housing
loan of ` _______________ (Rupees _______________________________
___________________ only) for the purchase of a flat under the Scheme and the
Company has agreed to sanction a loan of ` _______________
(Rupees__________________________________________ only) to Borrower
(Hereinafter referred to as the Housing Loans for purchase of flat) subject to
the usual terms and conditions applicable to the same Scheme such as
mortgage of the flat, rate of interest of loan repayment term, payment of
Page 106 of 159

additional interest in case of default, assignment of Flat/Dwelling Unit to the
Company as security etc.
AND WHEREAS the Borrower has already deposited with the AWHO a sum
of ` _____________ (Rupees _______________________________________ only) as part
payment towards the purchase of a flat under the Scheme.
NOW IT IS HEREBY AGREED AS FOLLOWS:-

1. On receipt of intimation from AWHO that a flat shall be allotted to the
Borrower, the Company will sanction the Housing Loan for the purchase of flat to
the Borrower according to its rules, but the actual payment in installment/lump
sum will be made by the Company directly to the AWHO within the time specified
in the allotment letter and/or as and when required by AWHO. Before the
disbursement of loan, any amount towards purchase price in excess of the
Housing Loan for purchase of flat sanctioned by the Company will be paid by the
Borrower directly to the AWHO from the date of demand of such amount within
the time specified by the AWHO. If there is any delay on the part of the Company
in payment of the installments, the Borrower shall be liable to pay to the AWHO
penalty/interest on such delayed payment, if any, according to the rules of the
AWHO.
2. The AWHO shall maintain a proper account for the Borrower only when the
loan installments are disbursed by the Company directly to AWHO under
covering letters of the Company and adjust the amount advanced by the
Company against the cost of the allocated flat to the Borrower.
3. On completion of the flat and after receipt of full payment and completion
of requisite formalities including the submission of documents etc, the possession
of the flat shall be handed over to the Borrower on Lease Hold/Free Hold basis.
However, the Sub Lease/Conveyance Deed in favour of the Borrower by AWHO
shall be executed within a reasonable time say within a year or so and after
completion of all requisite formalities by the Borrower/Allottee including the
allottee arranging the finance for purchasing the requisite stamp duty, registration
charges and such other charges as may be required to register the file of the flat
in favour of the allottee and till such time the flat shall form part of the security for
housing loan for the purchase of the flat granted by the Company and as soon
as Sub Lease/ Conveyance/Title Deed is executed by the AWHO, the Borrower
shall handover title deed of the flat as a collateral towards the mortgage the flat
immediately to the Company for having taken the Housing loan for the purchase
of flat. The Borrower shall also furnish all the necessary documents for registration
of Sub Lease/ Conveyance/Title Deed to the concerned registration authorities.
4. If the Borrower desires to withdraw from the scheme or if he/she fails to pay
the balance amount to AWHO, after the Company has paid full or part of the
loan, the entire amount advanced by the Company will be refunded by AWHO
to the Company. The AWHO will be responsible to refund the loan amount to
company to the extent of the loan amount disbursed and/or as demanded by
Page 107 of 159

the Company under intimation to borrower in accordance with Clauses 1 and 2
above. The AWHO will thereafter refund to the Borrower the initial deposit paid by
the Borrower after deducting there from such amount as may be recoverable
from the Borrower in accordance with provisions and rules of allotment of AWHO
as may be applicable to the Scheme.
5. In the event of cancellation of allotment of flat/dwelling unit by the AWHO,

AWHO shall refund to the Company the entire amount received from it and/or as
demanded by the Company in accordance with Clauses 1 and 2 above.
6. The AWHO hereby consents that the Company shall have a lien on the flat
in terms of mortgage permission granted by the Principle Lessor/Land Allotting
Authority, or as the case may be and that the Borrower may furnish the flat as
security for the loan to be obtained from the Company and create mortgage in
favour of the Company.
7. It is agreed that in case of cancellation of the allotment of the flat by AWHO

in terms of its rules of allotment, AWHO reserves its right of re-entry and re-
possession of the flat. Such right shall not be enforced by AWHO unless a Notice
in writing of not less than 06 (six) month is served on the Company setting out the
precise breach for which the right is purported to be exercised, and an
opportunity is given to the Company to rectify or to get rectified the breach. No
right of re-entry shall be exercised if within the aforesaid period of 06 (Six) month
the Company or the Borrower has rectified the breach to the satisfaction of the
AWHO. Right to enforce reentry and re-entry shall continue to be available to
AWHO even after the expiry of 06 (Six) month. Subject to the provisions as
contained in Clauses 8 & 9 below the Company shall be entitled to enforce
forthwith it’s lien to the flat/dwelling unit and recover it’s dues out of the sale
proceeds thereof and there after AWHO shall be entitled to deal with the balance
of the sale proceeds in accordance with the provisions of the Scheme.
8. It is agreed and understood in an eventuality of the allottee/loanee causing

any breach of the provisions of allotment of AWHO and/or terms of re-payment
of the housing loan, even after taking over physical possession/registration of the
flat, the Company may initiate any legal action in accordance with the existing
laws of the land to recover the outstanding amounts/dues including the principle
loan amount, interest, any other administrative and legal expenses from the
allottee/loanee, including by way of sale of the mortgaged flat. However, in such
eventuality, the Company shall without fail, offer to AWHO the first right to take
over the mortgaged flat after clearing outstanding dues. Only after refusal of
AWHO in writing to take over the said mortgaged flat, shall the Company be
entitled to take further course of action as permissible in law, however keeping
AWHO informed in writing well in advance and also make available all such
Legal/Public Notices/Notifications served to the allottee / loanee or published in
News Papers/Public Forums from time to time. Further, the Company while taking
legal course to dispose off the flat by way of public auction, shall ensure that the
Page 108 of 159

auction purchaser strictly comply with the eligibility conditions as well as disposal
conditions of Property as laid down in Rules 12 and 80 of AWHO Master Brochure
July’87 (As Amended up to 01ST Mar 2016) or any subsequent amendments which
may be deemed necessary and come into force from time to time shall also be
binding on the Company. In no circumstances, shall the Company deviate from
the above laid down rules of the AWHO for the sale of the mortgaged property to
recover the unpaid loan amount from the allottee/loanee.
9. It is also agreed that the Company shall be responsible to ensure that the
higher bidder emerged in accordance with Clause 8 above, shall execute/submit
all legal documents and pay Transfer/Applications fees as applicable to AWHO
for allocation of a unique Registration Number.
IN WITNESS WHEREOF the parties above named have hereunto set their hands on
the dates specified hereinafter in each case.
(Signature of the Borrower/Allottee)
WITNESSES
1. Name, address & occupation
2. Name, Address & Occupation
(Signature on behalf of the AWHO)

WITNESSES
(Signature on behalf of Housing Loan Agency)
WITNESSES
SCHEDULE OF PROPERTY
Flat No_____ Category ________ Name of Colony & Block __________ AWHO
allotment letter No ____________________________________dated
_________loan sanctioned ________________Period of loan__________.
Page 109 of 159

TO BE TYPED ON STAMP PAPER OF Rs 20/- AND ATTESTED BY A NOTARY PUBLIC
UNDERTAKING TO FURNISH THE DETAILS OF THE BORROWING OF HOUSING

LOANS FROM FINANCIAL INSTITUTION(S) TOWARDS ALLOTMENT OF DWELLING
UNIT
To,
The Managing Director

Army Welfare Housing Organisation
South Hutments, Kashmir House
Rajaji Marg, New Delhi-110011
1. WHEREAS the undersigned allottee has been booked for allotment/allotted a dwelling
unit/plot in AWHO’s housing scheme at _________________________________ vide AWHO’s
scheme Membership No._________________________.
2. AND WHEREAS as per the extant rules of AWHO and also as per such terms and conditions which
may be circulated by AWHO from time to time, it has been given to understand that the tentative
cost of the dwelling unit for which the undersigned has sought booking or which has been
allotted to the undersigned, THE UNDERSIGNED has sought a housing loan from
___________________________________________________________ to the extent of
Rs.…………………… and Home Loan A/C No is ………………………..
3. AND WHEREAS at the request and demand of the financial institution(s) mentioned herein
above, in order to secure the advance made by the said financial institution(s), the undersigned
has requested AWHO to execute a Tripartite Agreement, contents and terms whereof the
undersigned has read and understands.
4. AND WHEREAS in compliance with the terms and conditions of allotment of AWHO and also
those contained in the Tripartite Agreement mentioned herein above, the undersigned hereby
states and undertakes that on either the cancellation of the allotment or withdrawal from the
housing scheme, the undersigned will obtain a letter from the loaning agency stating the total
amount of housing loan refundable and due to them. If the undersigned fails to furnish the letter
from the agency AWHO shall be at liberty to retain such amount as paid by the undersigned till
such time the undersigned furnishes the amount due certificate from the loan disbursing
agency.
5. AND WHEREAS the undersigned will not dispute the amount refunded directly to the financial
agency and shall not hold AWHO liable and responsible for holding up the payment for the want
of documents from the loan agency as mentioned in Para 4 above.
6. AND WHEREAS undersigned also accepts and undertakes not to hold AWHO liable and
responsible for payment of any such amount or demand by the financial institution(s) which
demand the undersigned may deem in excess of the amount disclosed in Para No. 2 above, which
disclosure the undersigned states is the true disclosure of the amount paid by the financial
institution on behalf of the undersigned to AWHO.
Page 110 of 159

7. AND WHEREAS the undersigned hereby undertakes to submit to AWHO an attested photocopy
of the “Final Clearance/Mortgage Release Certificate” so obtained from the said Financial
institution once the entire loan amount is pre-paid/refunded in order to lift the lien of the said
Financial Institution from the records of AWHO.
Place :
Date : (Signature of Borrower)
Page 111 of 159

Tripartite Agreement between Borrower, CGEWHO and Bank Annexure 12.4
(TO BE EXECUTED ON A NON-JUDICIAL STAMP PAPER)

This agreement made on this ________th day of _________________ 20___ between
1.Mr/Mrs_________________________________S/o(D/o)Shri _______________________
_________, R/o________________________________________________________ (Name
and Address) Hereinafter learned as `Borrower' which term shall unless repugnant in the
context shall include his/her heirs, executors, administrators and assigns of the First Part.
2. Central Govt Employees Welfare Housing Organisation (hereinafter referred to

as Organisation) The Organisation registered in July 1990 under the Society's Registration
Act XXI of 1860 vide Registration No. S/21181 dated 17.7.90 having its registered office at
CGEWHO Janpath Bhavan, 6th Floor, `A' Wing, Janpath, New Delhi - 110 001 (hereinafter
termed as Organisation) which term unless repugnant to the context shall include its
successors, administrators and assigns of the second part.
3. _________________________________________(Name of Bank) a body

corporate constituted under the __________________ Bank Act ______________ ,
represented by one of its branches situated at _________________________ (hereinafter
termed as Bank) which expression shall unless repugnant to the context shall include
its assigns, administrations and successors of the third part.
4. AND whereas the Borrower has been allotted a house/flat ________ (Regn.
No.__________) situated at _______________________________ to be constructed by the
Organisation as per agreement dated _____________ wherein the borrower is required to
make payment(s) to the Organisation in lump sum/ instalments as provided under the
terms of allotment. WHEREAS the Borrower has under the provisions framed by the bank
for a housing loan for the purpose of purchase of house/ flat from Organisation. The Bank
therefore has agreed to sanction a loan of Rs.________________ (Rupees
_______________________________________________only) to the Borrower (hereinafter
referred to as Housing Loan for Purchase of House/Flat) subject to the terms and conditions,
the Borrower is also required to furnish to the Bank interalia other securities, the mortgage
of the above said house/ flat and the Organisation has agreed to render all assistance to
Borrower/ Bank to comply with this condition and in particular agreed to obtain permission
to mortgage from the lessor and or such other person/authorities as may be required.
5. AND WHEREAS the Borrower and the Bank has entered/agreed to enter into the loan
Agreement incorporating therein the terms and conditions regarding Housing Loan for
purchase of House/Flat.
6. AND WHEREAS the Borrower has represented that he would not be able to mortgage
the above said house/flat until such time the full payment is made towards its cost and the said
house/flat has been conveyed to the Borrower by the Organisation towards consideration
of the said loan sanctioned to the Borrower.
Page 112 of 159

AND WHEREAS the Borrower has requested the Bank to disburse the said loan to the
Borrower notwithstanding the borrowers inability to create mortgage at this stage on the
strength of this agreement.
It is hereby agreed to and by between the parties hereto on the terms and conditions set forth
herein below.
1. That the Borrower hereby authorise the Bank to make disbursement(s) of the
sanctioned loan to the Organisation directly on behalf of borrower and any such payment
made to the CGEWHO shall be deemed to be the payment(s) made to borrower and the
borrower shall in each case be liable for the payments of loan disbursed on his behalf to the
Organisation as though the same has been disbursed directly to borrower. If there is any
delay in payments to the Organisation, it will be treated as default on the part of borrower
and the borrower shall be liable to pay the Organisation the penalty/interest on such delayed
payment, if any, according to the terms of allotment and policy of the Organisation.
2. That the Organisation shall maintain a separate account of the borrower and adjust the
payment received by it from the Bank towards the cost of above said house/flat allotted in
favour of the Borrower.
3. That the Organisation hereby consents that the Bank shall have a lien on the
house/flat and Borrower may furnish the house/flat as security for the housing loan to be
obtained from the Bank and also to create mortgage in favour of the Bank in respect of the
said house/flat.
4. That the Borrower undertakes that on execution of the sale deed/lease deed after
delivery of possession. The Borrower shall deposit the said deed directly to the Bank.
5. That the house /flat shall form part of the security for the housing loan sanctioned by
the bank and as soon as the sale deed/lease deed is executed by the Organisation, the
borrower shall create mortgage in favour of the Bank, as security for the housing loan for
the purchase of house/flat in the form and manner as desired by the Bank.
6. That if for any reason there is an increase/escalation in the cost of dwelling unit by
Organisation, the same shall be paid and borne by the borrower as the case may be as per the
agreement between them without any reference to the bank and until such payment(s) is/are
made, the bank shall have right to suspend further disbursement of the sanctioned loan
remaining loan instalments in favour of the Borrower.
7. That during the currency of the loan Organisation shall not transfer the house/flat to
any other person without the previous written consent of the Bank.
8. That in the event of the cancellation of allotment of the Borrower by the Authority,
for reason whatsoever, the Organisation shall refund to the Bank forthwith, the entire amount
received from it as per CGEWHO Rules.
9. That the Organisation shall not issue duplicate allotment letter and possession letter to
the borrower without obtaining the prior written consent of the Bank.
10. That is the event of default by the borrower, the Bank may at its discretion enforce
the security by sale to a person in consultation with the Organisation and Organisation shall
accept the purchase of house/flat in place of borrower who shall be eligible to acquire the
Page 113 of 159

flat/dwelling unit as per rules of the Organisation, after the purchaser's complying with the
necessary requirements of the Organisation in this respect.
IN WITNESS WHEREOF THE parties hereto have signed this Agreement on the day, month
and Year above first written.
Regn. No._____________
Address of the Borrower
______________________________________
______________________________________
WITNESSES (Signature of the Borrower)

(Signature with full names & addresses)
1.
2.
WITNESSES Signature on behalf of the Organisation
1.
2.
WITNESSES Signature on behalf of the Bank

1.
2.
Page 114 of 159

NRI Corner Annexure-13
HOUSING LOAN CHECKLIST OF REQUIREMENTS – NRI ALONG WITH APPLICATION
1. Application Form Duly Filled & Signed. (If customer abroad by the GPA Holder in India).
2. Latest Passport Size Photographs (2 each for Applicant, Co-applicant and GPA Holder)
3. IDENTITY PROOF, AGE PROOF AND ADDRESS PROOF (Any one)
□ Passport □ Electricity Bill □ Telephone Bill □ Driving License □ Aadhar
4. Cheque payable AT PAR favouring BANK OF MAHARASHTRA towards initial processing
fee from NRE / NRO account only.
5. INCOME
 G P A in Bank of Maharashtra format (GPA has to be a blood relation). – Notarised
Copy
 Copy of Passport & Valid Visa (all pages). – Notarised Copy
 Overseas Resident address proof (telephone bill / rent agreement). – Notarised Copy
 Salary Slip of last six months.
 Bank Statement/Pass book (where salary is credited) for last six months.
 Latest Employment Letter / Contract renewal letter.
 If on a deputation copy of the deputation letter.
 Official Mail ID from the employer.
 Mail ID of the HR Head / Dept.
 Existing Loan Repayment Track record
 Earlier company appointment & relieving letter (continuity for last 2 years).
 Company Profile.
 Qualification Proof.
 GPA Holders ID, Address, Date of Birth & Signature proof (India).
 NRE/NRO Bank Statement/Pass book for last six months. (India).
NOTE:
 Spouse to become a compulsory Co-applicant.
 In case of Bachelor – Parent to become Co-applicant (GPA as well as co-applicant).
 All Documents as above have to be in English. If in any other language certified
translated copy of all the above has to be provided.
 All documents other than the ones marked as Notarised copy can be net downloaded /
e-mailed. The Notarised copies have to be sent in Originals.
 Preferably Project has to be approved by Bank of Maharashtra / or under approved plan
by appropriate authority.
 Maximum Tenure: As per Scheme specific.
 Maximum Funding 85%, 80% & 75% as per LTV norms for house/flats (on loan amount)
& 70% for Plot loans.
 Self-attestation on all documents either by Applicant or GPA holder is a must.
 The Processing Fees cheque and the subsequent cheques have to be from an account
of NRE/NRO only.
 The 6 months NRE Bank statement required is for an active account with regular
transaction in the same.
 The Bank statement has to be for the same account from which the cheque is being
issued.
Post Sanction Requirements

 Loan Documents and accepted Sanction Letter singed (by the GPA Holder)
Page 115 of 159

 24 + 1 Post Dated Cheques (from NRE/NRO account as repayment is permitted only
from these account)
 Margin Money proof
 All original Property Documents.
 All Sanction conditions to be fulfilled.
 All the copies of the documents should be self-signed either by applicant or by
GPA Holder
Further the following points are to be followed in this respect:
1) The documents are to be executed in the name of the NRI applicant and signed by the
attorney as attorney of the applicant.
2) The maximum amount up to which the attorney can avail the loan from Bank in the name
of the applicant is to be mentioned in the POA.
3) Upon receipt of the offer from the attorney to avail the housing loan in the name of the
NRI applicant, Correspondence is to be made directly by Branch to the applicant about
the offer and the applicant has to confirm by correspondence directly to Bank that the
POA executed by him in favour of Attorney is still in vogue and that the loan is being
availed with his consent only and that he shall be responsible to repay the dues.
4) After disbursal of loan again correspondence is to be made by branch to applicant about
execution of documents and the disbursal of loan.
5) While disbursing the loan, the identity of the Attorney is to be confirmed thoroughly.
6) Amount to be disbursed as per the terms of sanction
7) Copy of Passport of applicant is to be kept on record of branch.
8) Obtain a confirmation/undertaking from NRI after disbursement during his/her visit to
India as confirmation of debt/obligation.
Instructions in filling up the GPA:

Executor(s): Applicant & Spouse.
Executant: GPA Holder in India (has to be a sibling / parent of the Executor(s).
A GPA can be given to spouse if the executor has gone on temporary deputation.
 The names of the Executor(s) as being filled have to tally with their names as appearing
in the passport.
 The address of the Executor(s) can be any address where he / she are temporarily
residing in India during his / her visit.
 The name of the Executant should be the same as in the address being provided.
 The address of the Executant should also tally with the proof of address of the GPA
holder that is being provided.
 The Executor(s) have to sign on all the pages of the GPA at the bottom and on the last
page at the place marked for Executor(s).
 If unmarried there is no need for a Co-applicant and all the above conditions apply for
single Executor. The GPA holder becomes a co-applicant & GPA holder.
 If there is an overwriting it has to be initialled by both the executor(s).
When the GPA is executed in India (customer is in India when signing the GPA):
 The GPA has to be done on non-judicial Stamp Paper (appropriate value) purchased
from the city where he resides or is executing the GPA (value of stamp may vary as per
the state’s stamp acts in different state).
 GPA to be notarised by a local Notary.
 The date of execution of the GPA & Notarising should be the days when the Executant
was physically present in India.
Page 116 of 159

When the GPA is executed abroad (customer is abroad when signing the GPA):
 The format as below can be filled up with all the details, a print taken on a white sheet
and duly signed by the Executor(s).
 The same has to be notarised by a Notary Public in the city where applicant resides.
 In some countries there is no system of Notary Public; in such case the GPA has to be
duly attested by the Indian Embassy / Consulate.
 The GPA in original has to be sent to the holder here in India, which has to be later
adjudicated within 3 months of execution. This costs around Rs.900/-, vary from state to
state (cost to be borne by the GPA Holder).In some of the states this adjudication process
abolished by GR notification.
One of the Executors is in India & another abroad: Separate GPA from them as above
will be required.
Page 117 of 159

GENERAL POWER OF ATTORNEY
KNOW ALL MEN BY THESE PRESENTS THAT I / We, Mr / Ms Applicant …..S/O W/O D/O
Applicant’s Father / Husband….. AND Ms / Mr Co-applicant….. S/O W/O Mr Co-applicant’s
Father / Husband….. Resident of Applicant’s current residence address abroad…...that I/We
am/are desirous of and intend to avail a housing loan from Bank of Maharashtra for the
purchase of a house/Flat and as I /we are staying outside India and as I am unable to attend
the Bank for complying with various formalities pertaining to the availing of Housing Loan from
the Bank I/We DO HEREBY APPOINT AND CONSTITUTE…Mr / Ms GPA Holder’s
name…..S/O W/O D/O GPA Holder’s father’s / Husband name…..is relative of mine and in
relation as ………… and at present residing at GPA Holder’s address in India…..To be my
lawful Attorney (herein after called as the Attorney) in my / our name and on my /our behalf to
do any one or all of the following acts, deeds and things, namely:
1. To book a flat/s, residential unit/s or residential site on my / our name and behalf either
directly or through the agency of Bank of Maharashtra, a body corporate constituted
under the Banking Companies (Acquisition & Transfer of Undertakings) Act, 1970 and
having its Head office at Lokmangal, 1501 Shivajinagar, Pune 411 005 and a Branch
Office amongst various other places at _____________ (herein after called as “BANK
OF MAHARASHTRA”) and to execute Agreements for purchase of the same with any
builder/seller or any other person and make payments to him thereof and to present
such Agreements/deeds for registration before the appropriate Registrar/Sub-Registrar
or any other authority at any place in India as may be necessary.
The Attorney is hereby authorized to make payment directly to BANK OF

MAHARASHTRA on my/our behalf for any flats /units my/our said Attorney might
purchase through BANK OF MAHARASHTRA and comply with such conditions/terms
BANK OF MAHARASHTRA may have in this behalf. He/She is authorized to make such
payment to BANK OF MAHARASHTRA as may be demanded by BANK OF
MAHARASHTRA by way of service charge etc.,
He/She is authorized to execute any agreements, letters and documents as may be

required by BANK OF MAHARASHTRA in respect of the above. The expression
builder/seller shall include BANK OF MAHARASHTRA and subsidiary.
2. To admit execution of the Agreement for sale/sale deed before the said Registrar/Sub-
Registrar or any other Authority as may be required for that purpose.
3. To apply for a loan/s on my name and behalf under the Housing Loan scheme of BANK
OF MAHARASHTRA and also any further or additional loan/s to BANK OF
MAHARASHTRA for such amount as the Attorney may deem fit upto an amount of Rs.
_____________ (Rupees ____________________________ only) and for that purpose
to pay processing fee/s and sign the loan application/s in my / our name and on my / our
behalf and to furnish all the details and information required by BANK OF
MAHARASHTRA and to give any statement, letter, clarification or any other writing
required or necessary in relation thereto.
4. To accept the loan offer letter/s and sign the acceptance/s thereof in token of my / our
acceptance of the terms and conditions therein contained and to pay on my behalf the
administrative fees and any other charges including commitment charges leviable in
respect of the said loan/s.
Page 118 of 159

5. To request BANK OF MAHARASHTRA or agree with BANK OF MAHARASHTRA for
any change or modification in the loan amounts, rate/s of the interest, period of
repayment of loan/s or any other terms and conditions in relation to the loan/s at any
time or from time to time.
6. To receive the disbursement of the said loan/s and for that purpose give effectual
discharge and give all the necessary information and documents to assist the Technical
and Legal Appraisal of the property/ies purchased/ to be purchased with the help of the
loan/s.
7. To mortgage in favor of BANK OF MAHARASHTRA any property/ies the Attorney may

book /purchase on my /our name and behalf or which I / we might have
booked/purchased (Whether with or without Bank of Maharashtra’s financial assistance)
with BANK OF MAHARASHTRA by deposit of title deeds as security for the repayment
of the loan/s granted/ to be granted by BANK OF MAHARASHTRA to me / us.
8. To deposit on my / our behalf, the documents of title to property in my name and to state
on my / our behalf to any officer of BANK OF MAHARASHTRA that the said documents
are being deposited for creating a Charge on the said property/ies by way of equitable
mortgage for repayment of the said loan/s. The Attorney is fully authorized to make these
statements and convey my / our intentions to create security on my / our said
property/ies or any other property/ies the Attorney may book/buy on my / our name and
behalf.
9. The Attorney is further authorized to do any other Act necessary to create equitable
mortgage by deposit of title deeds and also to execute any writing, undertaking,
indemnities etc on my / our behalf in respect of mortgage of the said property/ies or the
guaranteeing of the repayment of the said loan/s or any other writing whatsoever,
required in respect of the said transactions of the loan/s granted / to be granted to me /
us or creation of the said security.
10. The Attorney is also authorized to execute any loan agreement/s promissory notes,
letter/s of declaration and Indemnity or such other documents as may be required by
BANK OF MAHARASHTRA in respect of the said loan/s on my name and behalf.
11. The Attorney is also authorized to execute in favour of BANK OF MAHARASHTRA an

irrevocable power of attorney authorizing BANK OF MAHARASHTRA to execute in its
own favour or in favour of any other person, as BANK of Maharashtra in its sole
discretion may decide, legal mortgage in any form including in the English form of the
property/ies.
12. He/She is also authorized to pledge with BANK OF MAHARASHTRA any share
certificates, debentures bonds, units issued by National Saving Certificates, Fixed
Deposits or any other security owned by me / us in favour of BANK OF MAHARASHTRA
by way of security for the said loan/s availed in my name and to sign any document,
transfer forms or paper that may be required by BANK OF MAHARASHTRA in
connection therewith.
13. To acknowledge my liability/debt of the loan/s.
14. To obtain possession of the flats / residential units as and when the same is ready for
occupation.
Page 119 of 159

15. To receive loans and all other documents including title documents on my/ our behalf
from BANK OF MAHARASHTRA and execute receipts thereof.
16. To sign forms, documents and paper required for the registration of Co-operative
Housing Society or a Limited Company or any Association of Apartment Owners and
become member thereof, participating in all the meeting and proceedings from time to
time, obtain share certificate and/or other documents issued in my/our name and hold
the same as my/our attorney and obtain possession of the flats.
17. To operate Bank Account in any Bank in India in my/our name both resident as well as
non- resident. The account may be operated in Indian currency or foreign currency to
be remitted by me/us from time to time.
18. The Attorney is authorized to do all such acts, deeds and things including signing any
paper / documents as are necessary and incidental to the above and that any act or
statement or writing of my/our said Attorney in pursuance hereto shall be deemed to be
fully authorized and ratified by me/us.
19. I/We do hereby ratify and confirm all and whatsoever the said Attorney should do or
purport to do or cause to be done by virtue of these presents.
20. The powers given under this Power of Attorney are irrevocable and shall not be revoked
by me/us under any circumstances and for any reason whatsoever, otherwise than on a
written permission to that effect from the Bank.
21. This Power of Attorney issued is not for any monetary consideration and is only with
intention to enable the said Attorney to do all acts specified in these presently solely on
my/our behalf as my/our lawful attorney. I do hereby confirm and declare that no
consideration has been flown to the said attorney for acting as my lawful attorney as
stated herein.
Dated at _____________this _________day of _______________20__________
X (Signature of Applicant)
X (Signature of Co-applicant)
___________________
Signature of Executant(s)
Address: Address:
(GPA Holder’s address in India)--- (Executant’s address abroad) ---
------------------------------------------ ------------------------------------------
------------------------------------------ ------------------------------------------
------------------------------------------ ------------------------------------------
Pin: ------------------------------------ Pin: ------------------------------------
Tel: (Res) ------------------------------ Tel (Res) -----------------------------
(Off) -------------------------------- (Off) ----------------------------------
(ATTESTATION BY THE INDIAN EMBASSY / NOTARY PUBLIC)
Page 120 of 159

HOUSING LOAN CHECKLIST OF REQUIREMENTS – SALARIED
Application Form Duly Filled with following information for both applicant & co-applicant
(signed by GPA holder):
Loan amount requested along with the tenure of loan. []
Full address (abroad) along with the phone nos including the Permanent address. []
Personal Details like PAN Card, Passport, Driving License number etc. []
Present house (abroad) whether rented or self-owned; if rented the rent per month. []
Vehicle owned details along with the hypothecation details. []
Present Employment details along with the company address, phone numbers with
Extension number, official mail ID and HR mail ID, designation and the date of joining. []
Previous Employer details like the name, City, designation & no of years in employment [ ]
Gross and Net monthly Salary [ ]
Bank details like Bank name, branch, account type and account number of all bank a/cs. [ ]
Credit card details like Name of Bank, Card no, valid till, type of card & credit outstanding [ ]
2 local reference name, address and telephone numbers. []
Property details like address, survey number, built up area []
Builder name, Project name. []
Cost break up like basic cost, other charges like deposits, car park & exp like regn, GST. [ ]
Latest Passport Size Photograph (2 Nos. each) []
Signatures by the GPA on behalf of Applicant and Co-applicant []
Customer declaration duly filled and signed by GPA. []
Investment declaration duly filled and signed by GPA. []
Bank verification form duly filled and signed by GPA. []
Documents to be attached with the Application forms:

1. IDENTITY PROOF, AGE PROOF, SIGNATURE PROOF AND ADDRESS
PROOF (Any one):
□ Passport □ PAN Card □ Aadhar Card □ Ration Card []
□ Voter’s Card □ Electricity Bill □ Telephone Bill □ Driving License
2. Cheque favoring Bank of Maharashtra towards initial processing fee @ 0.25% of the
loan amount. []
3. Salary Slip of last 6 months showing all deductions along with current Salary Certificate. [ ]
4. Continuity proof for last 2 years either appointment & relieving letters. []
5. Bank Statement/Pass book (where salary is credited) for last 6 months. []
6. Copy of Appointment letter (if less than One year in present job). []
7. Latest CTC. []
8. Repayment Track record of Existing Loans []
9. Company profile (for employees of Pvt. Ltd. Company). []
PRE-DISBURSAL
• Loan Documents and accepted Sanction Letter signed
• Margin Money Proof (Receipt from the builder)
• Original Sale & Construction Agreement as per prevailing Stamp Act on Non Judicial Stamp
Paper.
• Tri partite Agreement on a Rs 100/- Stamp Paper (as per stamp act of state) Amount may vary
• Cost Break up on Builder Letter head.
• Demand Note from Builder along with Bank Number on a letter head.
• 24 + 1 Post Dated cheques.
All the copies of the documents should be self-signed in blue
Page 121 of 159

Step by Step Housing Loan Account Opening Annexure 14
Path: DL/TL Accounts & Services  Loan Tracking  Operations  New Accounts  Transmit
In the next screen, select the appropriate product code, enter the Loan Amount, Tenor of the Loan
(in months) & Repayment Day
Please Note: Repay Day Should be date on which repayment is expected. IF repayment is not done on
that date, the amount of EMI will be shown under Overdues and tracking for NPA and Overdue Interest
Application will take place. If any incremental interest is there, the same has to be mentioned in
Page 122 of 159

Incremental Interest field. After entering the data, transmit to the next screen. Preferably repayment
day is the day on which account opened.
In the next screen, enter the correct BSR Activity Code, Customer Type, Sanctioning Authority and
Mortgage Flag. Mortgage Flag will be Yes for all Housing Loan accounts and Mortgage Security Count
will be No. of Property to be Mortgaged.
After the above screen, approval process has to be done.
Page 123 of 159

Note: Staff Loan Process is to be taken only for staff Housing Loan Scheme. After approval,
Disbursement schedule to be created.
Page 124 of 159

BY Default the disbursement schedule will be created for one month, however if the disbursement
(Tentative) is known the same should be updated in above fields. Later on the same can be amended
if required. Note: whenever changing the disbursement schedule, change only Expiry Date.
Page 125 of 159

After the disbursement schedule, Repayment schedule to be generated.
The repayment mode will be EMI generally.
Page 126 of 159

We have considered a moratorium of 18 months. Hence the Principal Repay start date will be 18
months after the date of account opening. In case there is no need to service the interest in
Moratorium period, then the Interest Repay start date will also be 18 months after the date of account
opening. In case interest has to be serviced during the Moratorium period, then the Interest Repay
start date will be next month of the date of account opening.
Page 127 of 159

After creating Repayment schedule, check the Repayment and if EMI amount is wrong, do the
necessary corrections.
After opening the account, check the account in short enquiry (screen-10400) and verify the account
details like Tenor, Interest Rate, EMI amount, Repay Mode etc. after checking, proceed for security
creation and recover the processing charges and other charges to proceed further.
EMI is generated on the ROI 11.25% for 240 months. This account is opened in test environment
hence ROI and Charges may not be correct.
Page 128 of 159

SOP- HOUSING LOAN
Standard Operating Procedures (SOP) refers to the set of Step-by-step instructions
to be followed while carrying the routine work.
1. Login stage-
 At the very first stage branch should take utmost care in due diligence and obtaining KYC
documents
a. Ensure KYC norms are fully complied with. Get identification of the borrower with
supportive documents.
b. E KYC verification
c. Verify Certified/Xerox copies of the supporting documents from the originals.
d. Ascertain credentials of the builder if applicant approaches for a loan through a builder.
e. Hold detailed discussion with the applicant to get confirmation about the information
submitted.
f. Be cautious while considering group finance.
g. Make discrete enquiry about the applicant with his/her employer in confidence.
Make discrete market enquiries in case applicant is in some business.
APPLICATION
 Antecedents of the applicants should be ascertained before sanction of loans.

 Obtain the application in prescribed format only.
 Obtain personal information form duly filled in with supporting documents.
 Obtain documents regarding income proof, salary certificate, employment certificate, Form
No.16, Income Tax return in original for verification of Xerox copies.
 Verify the genuineness of the employer, salary certificate immediately.
 Scrutinize all the supporting documents thoroughly. Get any discrepancy / doubt clarified
immediately.
 Ascertain the genuineness of the need of the borrower, his eligibility & worth from the
documents.
 The ITR can be verified from income tax online by entering the acknowledgement number
and the status of the same can be obtained.
Confirm that last six digits of acknowledgement number is date of filing return, as
mentioned on the acknowledgement. Check bar code carefully, the first 10 characters is
the PAN, also check bar code also contain 15 digits acknowledgement number.
Cross verify the contents of ITR-V with tax challans and TDS certificate, Form 26 as
and other financial statements
Verification of PAN
On the e-Filing website, click on “Know Your PAN”.

*If NSDL site asks for mobile number while searching the PAN provide your contact
number, it only forwards OTP on that number for search.
Enter your Date of Birth Enter your surname first,

Enter the Captcha &
Know Your PAN or Date of incorporation then enter your middle
Submit
in DD/MM/YYYY format name and first name
2. Credit History-
a. CIBIL REPORTS
Page 129 of 159

 CIBIL report is very important to know the credit history of the customer, while checking
the CIBIL report, branch should check for-
 No over dues, SMA/SUB in the past.
 No written off/ settlement A/Cs
 DPD if any (and reason for such DPD).
CIBIL report is real time thereafter “Enquiries” section of the report comes handy for
ascertaining the number of lenders with whom the borrower talking about different credit
facilities. Extra precaution may be exercised in such cases where more than two enquiries of
the same product and same amount are observed within a space of last one month. In such
cases one more report may be pulled prior to disbursement and status of those enquiries may
be ascertained from borrower.
Guidelines on CIBIL TransUnion Score (s)
1. Score predicts the likelihood of 91+ days delinquency on one or more loans next twelve
months. It is a number between 300 and 900, the higher the number value of the score,
lower is the risk profile of the individual. Scores higher the number indicate low risk
and score less than 600 indicates high risk.
2. Individuals who have less than six months of credit history will be scored 1-5. Risk
index is returned ranging from high risk to low risk. 1 represent high risk and 5 denotes
low risk.
3. Credit decisions in case of applicants with score less than 600 and score 1 and 2 (for
those who have credit history of less than 6 months) should be taken with due caution
and recording reasons for high risk score.
4. One overdue monthly payment in 24 months would be allowed provided default period
day did not exceed 30 days in the last 6 months.
5. A single credit card default (settled or otherwise) up to Rs.10000/- or other acceptable
genuine reason, sanctioning of such housing loan / Top up loan / loan against property,
(Self occupied) /vehicle loan etc. proposal shall be under discretionary power of zonal
manager. Rate of interest as per CIBIL score linked guidelines will be applicable.
6. Deviation will be approved by the zonal manager based on satisfactory reasons
furnished by borrowers for such default and after ensuring that there is no history of
multiple instances of default.
7. The name of the borrower should not be appearing in the willful defaulters of RBI /
Central fraud registry
b. CONFIDENTIAL REPORT: CR report should be obtained wherever required.
c. CERSAI (FOR PROPERTY HISTORY)-
 CERSAI report should also be checked to ensure that the proposed property is free from
any encumbrance. After sanction, Bank’s charge should be noted with CERSAI on
proposed property/vehicle for the loan sanctioned by our bank.
www.cersai.org.in
Login with Branch user id & password
d. CFR (CREDIT FRAUD REGISTRY)

(www.dbie.rbi.org.in ) User id & Password can be obtained from IRM department.
e. RBI DEFAULTER'S LIST. (ULC -- BOMNET --- CREDIT)
Page 130 of 159

CHECKS:-
 Ascertain the details of total liabilities with us.

 Ascertain that the applicant / guarantor is not a defaulter of our Bank or any other bank
/ institution.
 Ascertain that the names of the applicant/s, guarantor/s are not appearing in the
defaulters’ list published by RBI.
 In case of takeover of account, ensure the compliance of take over norms and other
conditions for takeover of account as explained in the CO Circular / Lending Policy.
3. Loan Eligibility calculation-

The Loan quantum should be calculated properly to avoid excess financing beyond the
eligibility of the customer. Following points should be given due care-
 Ascertain the genuineness of the need of the borrower, his eligibility & net worth from
the documents.
 Gross Salary and Net Salary/ Income as declared by the borrower as per the returns.
 Deduction norms as per the policy.
 Market value of the Property and the Margin as stipulated in the policy.
 For Vehicle loan On-road price and the Margin as stipulated in the policy.
 Existing Loan as per the CIBIL, As per Balance sheet, as per the EMI paid from the
bank statement, as mentioned by the borrower.
4. Pre - Sanction
 Consent letter / Undertaking from Applicant. Consent letter from applicant to be taken
for making discreet enquires about applicants as a part of due diligence process undertaken
by bank on which applicant doesn’t have any objection.
Property verification in the case of Home loan and LAP-

 Ensure that the name of the builder is not included in the negative list circulated by the
respective regional office / Bank / Other Banks.
 Obtain necessary papers relating to the property
 Verify the ownership / title documents of the property and its chain of transfer to applicant.
 Verification of seller /dealers / Promotors of the property.
 Obtain legal opinion / title clearance certificate from advocate on panel, before registration
of agreement to ensure that there is no other charge on the property proposed to be
mortgaged.
 Obtain the letter from builder as to how many NOCs are issued by him to enable the
applicant to approach different banks / financial institutions for availing housing loan.
 Obtain the valuation from approved valuers on bank’s panel.
 Ensure that the value of the property proposed to be purchased as stated in application is
not at large variance (inflated) from the prevailing market value.
 Visit report should be kept in record. In case of stage wise disbursements, verify the
stage wise end-use / construction development.
 Land Mark to be mentioned near the property. Make enquiries about the details of the
vendor with the neighbors, if possible.
 Route of the property has to be sketched/ described
 2-3 snaps of property should be taken and kept in record with the visit report.
 CERSAI report should also be checked to ensure that the proposed property is free from
any encumbrance. After sanction, Bank’s charge should be noted with CERSAI on
proposed property/ vehicle for the loan sanctioned by our bank.
 Property to be visited during pre-sanction and on each post disbursement. i.e. during
pre- disbursement as well post disbursement.
Page 131 of 159

5. Customer visit and Business premises verification-
 Branch official should meet the borrower & co-borrower personally.

 Visit the Business premises of the borrower and conduct inspection about business and
establish-
 Business-model.
 Clientele base
 Turnover
 Banking relationship
 Ownership of the business premises etc. so as to understand the business.
 The branch official should also focus and gather information about the family
background, Education, Asset/property details of the borrowers.
6. Proper analysis of reports-
Valuation report:
 Obtain the valuation from approved valuers on bank’s panel and Market/ Realizable
/Distress value of the property, CC, OC, area of the property should be checked.
 Ensure that the value of the property proposed to be purchased as stated in application
is not at large variance (inflated) from the prevailing market value.
Legal report:-
 legal opinion / title clearance certificate from advocate on panel should be obtained,
before registration of agreement to ensure that there is no other charge on the property
proposed to be mortgaged
 Legal report should be carefully seen to know if the title of the property is clear and
marketable and is free from encumbrances. Further documents as required by the
lawyer should be collected as per the legal report. Such as Indemnity / affidavit etc.
 Ensure that the name of the builder is not included in the negative list circulated by the
respective zonal office / Bank / Other Banks.
 Valuer and lawyer to conduct physical verification of the property before issuing the
report.
For all cases-
RCU/FCU report (Due diligence/ Risk/ Fraud control unit)-
 Vendor report should be checked and proceed only if the Positive FCU report is
obtained.
 In case of Negative report or referred to bank report the case should be referred
immediate higher authority.
Further in case of salaried borrower Email confirmation from the HR of borrower should
be obtained. Email confirmation should confirm the Date of Joining, Designation, place of
posting, Salary etc.
7. Builder/Seller/Dealer due diligence-
 The bank should conduct proper seller/builder/dealer due diligence.
Page 132 of 159

 Obtain self-attested KYC and Bank statement of the dealer/builder/seller (as the case
may be).
 Match the signature from previous sale deed as a buyer & existing agreement as seller.
8. General guidelines for Mortgage
 In case of equitable Mortgage the original title deeds must be deposited with the Bank and
charge should be noted with either the Society / Builder and in the revenue records.
 In case of registered Mortgage the Registration Receipt, the original mortgage deed duly
registered with the Sub Registrar and Extract of Index II (Extract of Entry in the Register of
the Sub Registrar) must also be taken on record. The charge of the Bank should be noted
on the Revenue Records.
 In case the property belongs to a company charge, by way of mortgage should also be
registered with the Registrar of Companies within 30 days of the execution of the mortgage
9. Documentation
 Obtain all documents consistent with the terms of sanction and as mentioned in the C.O.
circular.
 Documents should be done through only Loan Doc software.
 Documents are to be properly stamped before execution.
 Documents are to be executed by the applicant / guarantors in presence of the branch
official. Any alterations should be got authenticated by all the executants.
 In case of borrowers enjoying credit facility of Rs.50.00 lakhs and above, documents are to
be got vetted by the Law Officer / Advocate on panel.
 Preserve the documents under safe custody.
 Original property papers should be obtained.
 All the property related documents obtained should be vetted by the lawyer to make
sure that the property papers are original and genuine.
List of Documents executed
1. Application HLS D1
2. Agreement for Term Loan HLS D2
3. Letter of Guarantee HLS D3
4. In case of Simple Mortgage- Deed of Simple Mortgage HLS D4
Or
5. In case of Equitable Mortgage - the undernoted documents
HLS D4 a) Mortgagor's Declaration
HLS D4 b) Memorandum recording deposit of title deeds
HLS D4 c) Letter of Confirmation by the Mortgagor
6. HLS D4 d) Affidavit (in case original title deeds are lodged or
registration/lost/destroyed/misplaced and hence not available.)
7. Receipt HLS D5
8. Draft letter to the Advocate for legal opinion on title HLS D6
9. Letter from the Co-operative Housing Society (if formed), or Letter from the
Promotor/builder HLS D7 a) HLS D7 b)
10. Letter of Undertaking from the Borrower to deposit Share Certificates of the Co-
operative Housing Society HLS D8
11. Letter of Authority from Borrower to debit SB / Current A/c HLS B
12. Letter to be addressed by Borrower to employer where tie-up arrangement with
employer is made. HLS B-E
Page 133 of 159

13. Letter to be addressed by Employer to Bank where salary is through bank account.
HLS E1
14. Undertaking from employer where salary is not through bank account. HLS E
15. Letter from Bank to Builder/Vendor enclosing pay order. HLS D12
16. Letter by Borrower to Registration Authority for delivery of Registered Documents to
Bank HLS D13.
17. Any other required document stipulated in sanction.
10. Disbursement-
Loan amount should be disbursed to the Developer, Promotor, and Seller, or the Builder
(as the case may be) for the purchase transaction.
 Ensure that all the terms and conditions of sanction/ complete documentation including
mortgage formalities are complied with before disbursement of loan. Obtain prior
permission from the competent authority, if disbursement is to be made pending compliance
of certain terms of sanction.
 Ensure that the borrower has submitted all the original registered Title Deeds / documents.
 Ensure that the borrower has deposited his margin as stipulated in sanction.
 In case of disbursal in instalments it should be ensured that at any point of disbursal at least
proportionate margin money has been brought in / maintained by the borrower.
 Disburse the loan in stages based on stages of construction / development certified by
appropriate authority.
 As far as possible, disbursements should be made directly to seller / builder by pay order /
demand draft and it should be delivered to the builder / seller directly. After obtaining the
letter of consent / request in case of under construction Flat / home.
 Obtain stamped receipts and keep on record for all payments made to the builder / seller
/vendor.
 Obtain architect certificate at various stages of construction of building certifying that the
construction of the building/built up property is strictly as per sanctioned plan and/or building
bye-laws.
 Send certificate of compliance of conditions to appropriate authority
11. Post Disbursement
 In case of stage wise disbursements, verify the stage wise end-use / construction
development.
 Visit the place of borrower and confirm having taken possession of the property by him.
 Prepare and keep all the visit reports on record.
 Obtain “End Use Certificate” from the borrowers availing credit facility of Rs.10.00 lakh and
above.
 Obtain adequate insurance cover for property purchased with reinstatement clause.
 Ensure inclusion of Bank Clause in the Policy.
 Keep the insurance policy in force along with the documents.
 Sanction of more than 2 housing Loans for residential purpose to a single borrower shall
not be covered under Housing Loan Scheme and will attract Commercial Rate of Interest
as per defined under CRE policy.
ASSESSMENT OF ELIGIBLE LOAN AMOUNT (HOUSING LOAN)

On the basis of the information provided by the applicant/co-applicant supported by
documents and which has been cross checked/ verified by the bank officials, the eligible
housing loan amount is arrived as under :-
Page 134 of 159

Example - A salaried applicant/co-applicant applies for housing loan for Rs.25.00 lakh for
purchase of flat/construction of house, repayable in 240 monthly instalments@ 8.50 % p.a.
Cost of flat/construction is Rs.30.00 lakh. Applicant’s gross monthly salary is Rs.45000/- and
existing deductions Rs.8000/-.
Calculation of eligible amount

 Gross monthly salary of Last Month Rs.45000/-
 Net monthly salary of last month Rs.37000/-
 Total existing deductions inclusive of existing EMI(if any) Rs.8000/-
 60 times of the gross salary Rs.27,00,000/-
 75 times of net salary Rs.27,75,000/-
 Higher of above
Rs.27,75.000/…...A
 Cost of flat/construction Rs.30,00,000/-
 75/85/80/90% of the cost of flat/construction
Rs.27,00,000/…...B
 Loan applied Rs.25,00,000/-
......C
 65 % of the gross salary Rs.29,250/-
 Less existing deductions Rs.8,000/-
 Balance for proposed loan EMI Rs.21,250/-
............X
 EMI for Rs.1 lac for a period of 240 months Rs.868 /-
................Y
 Max. Permissible Housing Loan amount ( x/y) Rs.24, 48,000/-
…...D
 Eligible Housing Loan Amount (Minimum of A/B/C/D) Rs.24,48,000
 In case of businessmen/ professionals applicants, the eligible housing loan is

equivalent to 5 times of last 2 years average annual income on the basis of ITRs.
Bank officials to verify the financial statements, computation sheet of ITR for
asserting the income. The statement of bank accounts of the firm/applicants/co-
applicants for last one year to be scrutinized for determining the deductions.
Page 135 of 159

DO’s AND DON’Ts FOR HOUSING LOANS
SN PARTICULARS DOs DONTs
1 Identification/  Ensure KYC norms are fully complied  Don’t keep casual
Selection of with. Get identification of the borrower approach for
Borrower with supportive documents. selecting the
 Verify Certified/Xerox copies of the borrower.
supporting documents from the  Don't compromise
originals. on fulfilling KYC
 Ascertain credentials of the builder if norms.
applicant approaches for a loan through  Don't skip any
a builder. procedural steps.
 Hold detailed discussion with the
applicant to get confirmation about the
information submitted.
 Be cautious while considering group
finance.
 Make discrete enquiry about the
applicant with his/her employer in
confidence.
 Make discrete market enquiries in case
applicant is in some business.
2 Loan  Antecedents of the applicants should be  Don’t accept
Application and ascertained before sanction of loans. incomplete Loan
supporting  Obtain the application in prescribed Application Form,
documents format only. personal
 Obtain personal information form duly information form or
filled in with supporting documents. any other paper
 Obtain documents regarding income submitted by the
proof, salary certificate, employment applicant which is
certificate, Form No.16, Income Tax not supported with
return in original for verification of Xerox the required
copies. documentary
 Verify the genuineness of the employer, evidence.
salary certificate immediately.  Don’t rely only on
 Scrutinize all the supporting documents Xerox copies of the
thoroughly. Get any discrepancy / doubt supporting
clarified immediately. documents.
 Ascertain the genuineness of the need  Don’t leave any
of the borrower, his eligibility & worth item in the
from the documents. application form
unattended.
2  In case the applicant is existing  Don't get carried

borrower/ guarantor, ascertain the away by borrower /
details of total liabilities with us. builder's assurance
 Ascertain that the applicant / guarantor about genuineness
is not a defaulter of our Bank or any of supporting
other bank / institution. papers
 Ascertain that the names of the (Independent
applicant/s, guarantor/s are not verification is
appearing in the defaulters’ list necessary).
published by RBI.
Page 136 of 159

 In case of takeover of account, ensure
the compliance of take over norms and
other conditions for takeover of account
as explained in the CO Circular /
Lending Policy.
3 Property details  Ensure that the name of the builder is  Don’t rely on
not included in the negative list borrower’s oral /
circulated by the respective regional written confirmation
office / Bank / Other Banks. regarding
 Obtain necessary papers relating to the ownership of
property as per C.O. Master property.
Cir.No.AX1/PSRC/Cir 05/2006-07
dated 22.08.2006.
 Verify the ownership / title documents of
the property and its chain of transfer to
applicant.
 Obtain legal opinion / title clearance
certificate from advocate on panel,
before registration of agreement to
ensure that there is no other charge on
the property proposed to be mortgaged.
 Obtain the letter from builder as to how
many NOCs are issued by him to
enable the applicant to approach
different banks / financial institutions for
availing housing loan.
 Obtain the valuation from approved
valuers on bank’s panel.
 Ensure that the value of the property
proposed to be purchased as stated in
application is not at large variance
(inflated) from the prevailing market
value.
4 Pre-Sanction  Presanction visit should invariably be  Don’t delegate the
visit made to the present place of residence visit job to any
of the applicant and also the site of the intermediaries.
property, which is to be purchased.
 Verify the details of the property with
those in the papers submitted by the
applicant.
 Ensure that the Government / local
authorities have given necessary
clearance for the respective
project/building.
 In case of resale of flat, make enquiries
about the details of the vendor with the
neighbors, if possible.
 Have a dialogue with the builder /
vendor of the property.
 Mention the above facts in the visit
report and keep the visit report on
record.
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5 Repayment –  The repayment should be fixed on  Don’t stipulate
Loan considering the moratorium period, repayment by EMI
Installment and maximum repayment period available for borrowers who
period and repaying capacity of the applicant. don’t have regular
 While computing the EMI, interest for monthly income.
the moratorium period and other  Don’t stipulate the
charges that are going to be debited repayment program
every year should be considered. which is beyond the
stipulated norms.
6 Sanction of  Ensure compliance of checkpoints  Don’t sanction the
loan and Terms mentioned at No. 1 to 4. facility without
and conditions  Where more than 3 proposals are proper assessment.
of sanction. considered in the same society from a  Don’t sanction the
single builder, obtain the approval of the facility, which is not
Regional Office for the project. within the
 Prepare appraisal note for the delegated
concerned advance and keep it on sanctioning
record. As far as possible more than powers.
one official be involved in the scrutiny of  Don’t stipulate
the proposal. Multi layered decision ambiguous terms
making process should be adopted. and conditions of
 Be specific and clear while stipulating sanction.
the terms and conditions in sanction.  Don't sanction any
 Explain the terms and conditions to the loan in respect of
Borrower/s and Guarantor/s. those properties
 Covey the sanction incorporating all the which fall in the
terms and conditions and obtain category of
unconditional acceptance to all unauthorized
conditions of sanction from the colonies unless and
borrower/s and guarantor/s on the copy until they have
of sanction letter. been regularized
 Loan should be sanctioned within the and development
delegated powers of the respective and other charges
sanctioning authority. paid.
 Copy of the sanctioned plan by  Don't sanction any
competent authority in the name of the loan in respect of
person applying for credit facility must properties meant
be obtained before sanctioning the for residential use
home loan. but which the
 Obtain architect certificate at various applicant intends to
stages of construction of building use for commercial
certifying that the construction of the purposes and
building/built up property is strictly as declares so while
per sanctioned plan and/or building applying for loan.
bye-laws.
7 Documentation  Obtain all documents consistent with  Do not get the

the terms of sanction and as mentioned documents
in the C.O. circular. executed in blank.
 Fill in the entire set of documents before  Don’t part with the
execution. documents to
 Documents are to be properly stamped outsiders.
before execution.
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 Documents are to be executed by the
applicant / guarantors in presence of
the branch official. Any alterations
should be got authenticated by all the
executants.
 In case of borrowers enjoying credit
facility of Rs.50.00 lakhs and above,
documents are to be got vetted by the
Law Officer / Advocate on panel.
 Preserve the documents under safe
custody.
8 Disbursement  Ensure that all the terms and conditions  Don’t disburse the
of sanction/ complete documentation loan on the basis of
including mortgage formalities are Xerox or certified
complied with before disbursement of copies of
loan. Obtain prior permission from the Agreement to Sale
competent authority, if disbursement is and without
to be made pending compliance of complying the
certain terms of sanction. terms and
 Ensure that the borrower has submitted conditions of
all the original registered Title Deeds / sanction.
documents.  Don’t allow creation
 Ensure that the borrower has deposited of margin for credit
his margin as stipulated in sanction. facilities by
 In case of disbursal in installments it disbursing other
should be ensured that at any point of credit facility to the
disbursal at least proportionate margin applicant.
money has been brought in /  Don’t hand over the
maintained by the borrower. pay order / demand
 Disburse the loan in stages based on draft to
stages of construction / development intermediaries.
certified by appropriate authority.  Don't prefer cash
 As far as possible, disbursements disbursements.
should be made directly to seller /
builder by pay order / demand draft and
it should be delivered to the builder /
seller directly.
 Obtain stamped receipts and keep on
record for all payments made to the
builder / seller /vendor.
 Send certificate of compliance of
conditions to appropriate authority.
9 Post sanction  In case of stage wise disbursements,
visit verify the stage wise end-use /
construction development.
 Visit the place of borrower and confirm
having taken possession of the property
by him.
 Prepare and keep all the visit reports on
record.
 Obtain “End Use Certificate” from the
borrowers availing credit facility of
Rs.10.00 lakh and above.
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10 Registration of  Ensure that Annexure A of equitable  Don’t engage
Charge mortgage is notarized and our charge is intermediaries for
noted with the Revenue Authorities. noting our charge
 Copy of Index II entry, 7/12 extract on NSCs/KVPs.
confirming the bank’s charge should be
obtained and kept on record.
 In case of flat in the cooperative housing
society, our charge should be got noted
with the concerned society.
 Where the deposits are offered as
collateral / additional security, our lien is
to be noted on such deposits.
 Ensure genuineness of NSC/KVP when
offered as additional security and the
charge should be noted and confirmed
with the concerned authorities
personally by the branch officials.
 All the documents/ papers/
correspondence in relation with the
registration / noting of charge should be
kept along with the loan documents.
11 Insurance of  Obtain adequate insurance cover for  Don’t under insure
property property purchased with reinstatement the property.
clause.
 Ensure inclusion of Bank Clause in the
Policy.
 Keep the insurance policy in force along
with the documents.
 Maintain Due Date Diary for insurance
and carry out renewals from time to
time.
12 Repayment  Ensure that repayment is forthcoming
as per terms of repayment.
 In case of any default in repayment,
send demand notice / reminder
immediately.
 Account be classified as stressed
account for focused monitoring, if
overdues persist.
13 Monitoring of  Ensure regular repayment in the
advance account. In case of overdues make
continuous follow up with the borrower
by letters, reminders, phones, SMS,
visits etc.
 Maintain due date diary for renewal of
documents and renew the documents
from time to time.
 Visit the place of borrower at least once
in a half-year.
 In case of EMI accounts, quarterly
review should be taken to know about
any shortfall in repayment. Such
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overdues, if any, should be recovered
immediately.
 Recover any extra debits to the
accounts immediately.
 Carry out Credit Risk Rating as per CO
guidelines.
14 Procedure for  Following procedure shall be
registration of adhered to:
documents: I. Development agreement by owner
with Developer/ Builder as regards
(Ref: C.O.
right to develop the property must
Circular No.
have been duly registered with the
AX1/CrMon/
Sub-Registrar of Assurances having
Cir.
jurisdiction over the property.
No.24/2007-08
II. The agreement to purchase flats/
dated
house between applicant and the
10.11.2007)
builder must have been duly
registered with the Sub-Registrar of
Assurances having jurisdiction over
the property.
III. The Agreement to sale between the
applicant and the Builder/owner, duly
registered should be obtained in
original along with Index II (Extract of
Entry in the Register of the Sub
Registrar) and Registration Receipt.
IV. NOC of the builder/owner for
mortgage by the applicant borrower
shall be obtained.
V. Undertaking of the builder/owner
shall be obtained before
disbursement of loan stating that
 he has not & will not enter into
agreement to sale for the said flat /
house with any other person and
 To note our charge on the property
while registering the sale deed or
while formation of co-operative
Society.
VI. Search Report & Title Certificate
shall be obtained from Panel
Advocate certifying that the title of
the land owner, builder/developer
and borrower is clear and marketable
and that the Agreement to purchase
the flat submitted by the borrower is
duly registered with the Sub-
Registrar of Assurances.
VII. The duly registered conveyance
deed executed in favor of the
borrower by the builder shall be
obtained in original and taken on
record. In case the conveyance is
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made in favor of cooperative Society,
certified copy of the same along with
the allotment letter / possession
Receipt and original share certificate
should be obtained.
VIII. In case of loan for purchase of plot /
flat / building a house in a co-
operative society, Allotment letter
and share certificate as also lease
deed/ conveyance deed in favor of
borrower by society if executed shall
be obtained in original.
15 General  Following should be complied with:
guidelines for I. In case of equitable Mortgage the
Mortgage original title deeds must be deposited
with the Bank and charge should be
noted with either the Society / Builder
and in the revenue records.
II. In case of registered Mortgage the
Registration Receipt, the original
mortgage deed duly registered with
the Sub Registrar and Extract of
Index II (Extract of Entry in the
Register of the Sub Registrar) must
also be taken on record. The charge
of the Bank should be noted on the
Revenue Records.
III. In case the property belongs to a
company charge, by way of
mortgage should also be registered
with the Registrar of Companies
within 30 days of the execution of the
mortgage.
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FAQs on CIBIL Linked Rate of Interest for Housing loan & vehicle loan
1. Which score is to be considered Personal Score or CIBIL Score?
TU CIBIL score is to be considered.
2. In case of Borrower and co-borrowers, whose CIBIL score is to be considered?

The CIBIL score of primary applicant has to be considered for calculation of Rate of
Interest.
Following are the possible Scenario-

Scenario 1. Mr. A has applied for a Home/vehicle loan and having CIBIL score of 800
and his spouse Mrs A. having Score of 0/-1.
In this case interest rate may be applied based on CIBIL score of the First borrower i.e.
800.
Scenario 2. Mr. A has applied for vehicle loan/Housing loan and has CIBIL score of 650,
his spouse Mrs. A is the co-borrower and has CIBIL score of 750.Where income of First
applicant is considered and Income of second applicant is not considered then CIBIL
score of the first applicant may be taken as the base to apply the rate of interest.
his spouse Mrs. A is the co-borrower and has CIBIL score of 750. Where income of both
the applicants is considered then CIBIL score of the first applicant may be taken as the
base to apply the rate of interest.
Scenario 4. Mr. X has CIBIL score of 800 and Mr. Y is below 550.
In this case neither income nor loan of Mr. Y has to be considered as CIBIL score is less
than 600.
his spouse Mrs. A is the co-borrower and has CIBIL score of 750. Where income of
second applicants is considered and Income of first applicant is not considered then
CIBIL score of the second applicant may be taken as the base to apply the rate of
interest.
Our department is of the opinion to apply the rate of interest based on the CIBIL
score of the 1st applicant. However request your opinion to consider the CIBIL score
and apply rate of interest.
3. What will be the consideration of the CIBIL score below 600 of the borrower/s in
housing/Vehicle loan proposals?
Borrower/co-borrower with CIBIL score general less than 600(except o or -1) is not to
be accepted (other than spouse). For ex. if the co-borrower with income consideration
has a CIBIL score less than 600 then he/she is not eligible to be the co-borrower and
in this case, another co-borrower or guarantor is to be taken who meets the CIBIL
score requirement.
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In case of the borrower whose credit history is captured within 6 months, Score is
between 01 to 05 from High risk to low risk, which is to be treated at par with 0/-1 for
applying the rate of Interest.
For ex. Mr. G has applied for a home loan along with his elder brother Mr. F and the
CIBIL score of Mr. G is 720 and CIBIL score of co-borrower Mr. F is 512.
In this case Mr. F cannot be taken as co-borrower and therefore other blood relative
of Mr. G can be taken as co-borrower or the guarantor provided his score is more than
600.
4. What will be the rate of interest if CIBIL score improves or deteriorates in future?
CIBIL score will be considered for fixing the rate of interest at the time of sanction and
subsequent changes in the CIBIL score will not have any impact on the rate of interest.
However customers approaching for new facility such as new loan wherever CIBIL
score based ROI applicable, latest CIBIL score at the time of new sanction will be
considered for charging rate of interest.
5. What will be the impact on concessions given in the scheme?

Concessions shall be given as per the scheme guidelines. However, effective rate of
interest shall not be below MCLR.
6. How to understand CIBIL report?

A Credit Information Report (CIR) contains detailed information on the Credit one has
availed such as Home loans, Credit Cards, Personal loans, Vehicle loans, Overdraft
facilities. The Credit report is divided into 6 Sections-
A. CIBIL Score
The CIBIL score reflects Credit health of borrowers- CIBIL score, calculated based on
borrower’s credit behavior as reflected in the ‘Accounts’ and ‘Enquiries’ section of
borrower CIR, ranges between 300-900. A score above 700 is generally considered
good.
B. Personal information
Contains name, date of birth, gender and identification numbers such as PAN,
passport number, voter’s number
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C. Contact Information
Address and telephone numbers are provided in this section, up to 4 addresses are
present-
Alert-Tally with the present address and see the frequency and timing of Changes.
D. Employment Information
Monthly or annual income details as reported by the Members (Banks and Financial
institutions).
E. Account information
This section contains the details of credit facilities including name of lenders, type of
credit facilities (home, auto, personal, overdraft, etc.), account numbers, ownership
details, date opened, date of last payment, loan amount, current balance and a month
on month record (of up to 3 years) of borrower payments.
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F. Enquiry Information
Every time borrower apply for a loan or credit card, the respective Bank or financial
institution accesses borrower CIR. The system makes a note of this in borrower credit
history and the same is referred as “Enquiries”
Alert- So Many enquiries from different banks gives caution.
Following are different sub-section contained in the account information section-

Account Details: Here we find the details of all the Loan / Overdraft account opened in
borrower name by different lenders.
i. Member Name: The name and details of the lender, who has extended loan or overdraft
facility to borrower.
ii. Account Number: The account number of the loan / overdraft account.
iii. Account Type: Type of the Account
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iv. Ownership: Ownership tells the lender who is responsible for payments on that loan or
credit card. There are four types of indicators that can appear in borrower credit report.
 Single: Borrower are solely responsible for making payments on that account.
 Joint: Borrower and someone else bear joint responsibility for payments on these
accounts. This will also reflect on the other person’s credit report.
 Authorized User: This is used for add-on credit card debt borrower may have. While
this reflects on borrower credit report, lenders know that borrower are not
responsible for paying dues on that particular account.
 Guarantor: A guarantor pledges to repay loan on behalf of a third party who has
taken a loan. Hence, he provides a guarantee to the lender that he will honour the
obligation, in case the principal applicant is unable to do so.
Dates: This section give the time lines about borrower loan account. There are four main
parameters in this section.
1. Date Opened / Disbursed: The date on which borrower loan, credit card or overdraft
account was opened.
2. Date Closed: The date of closure.
3. Date of Last Payment: The date on which the last payment was made.
4. Date Reported and Certified: The date on which CIBIL was reported about this
account.
Account Status: This sub-section give more details about the different important
characteristics of borrower loan account.
1. Credit Limit: It reflects the total amount of credit, borrower have access to with regard
to the credit card or overdraft facility.
2. High Credit: It reflects the highest amount ever billed (including interest and fees) for
that particular credit card or overdraft.
3. Current Balance: It is the amount borrower still owe on a particular credit facility. Please
understand that lenders typically take 30 to 45 days after borrower payment is received
to update this information with CIBIL. Consider this fact before raising any disputes.
4. Cash Limit: It is the amount of cash borrower are permitted to withdraw from borrower
credit card. This cash limit specifically applies to the credit cards only.
5. Amount Overdue: this indicates the total amount that has not been paid to the lender in
a timely fashion (it includes principal and interest amount).
6. Rate of Interest: The rate of interest applicable on borrower loan facility.
7. Repayment Tenure: It is the term of borrower loan. This field is to be read with the
payment frequency field in order to accurately understand the term of the loan. For
example, a value of 120 in this field at a monthly payment frequency would mean the
term of the loan is 10 years.
8. EMI Amount: Equated Monthly Instalment – the monthly payment required to be paid
by borrower for servicing the loan.
9. Payment Frequency: The frequency by which borrowers are required to make the
payments for servicing the loan.
10. Actual Payment Amount: It is the amount borrower has paid to lender if it is different
from the EMI amount. It can be more or less than the EMI amount.
11. Sanctioned Amount: This is the amount disbursed to borrower. It is applicable for the
accounts other than credit cards or overdraft.
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Collateral: It is the security which borrower provide to the lender in the form of property,
stock, gold, fixed deposits. By liquidating this collateral security, the lender might recover the
amount due towards borrower in case borrower are unable to repay loan.
1. Value of Collateral: The notional value of the security pledged by borrower.
2. Type of Collateral: The type of security provided by borrower for securing the loan.
Status: This section provides information about the status of borrower loan account.
Following entries may appear in this section.
 Suit Filed / Wilful Default: In case the lender has filed a suit against borrower, there is a
specific reporting prescribed by RBI. This is as follows.
1. No Suit (or the field will be blank)
2. Suit Filed
3. Wilful Default
4. Suit Filed (Wilful Default)
 Written-off and Settled Status: If this section is populated, the lender has either
restructured the loan by offering borrower different terms, written of this amount or
settled at some amount less than what the lender believes it was owed. The possible
values are as follows:
1. Restructured loan
2. Restructured loan (Government Mandated)
3. Written off (WO)
4. Settled
5. Post (WO) Settled
 Written-off Amount (Total): When a loan is written off, there is an interest and principal
component unpaid. This field reflects the total interest and principal amount written off.
 Written-Off Amount (Principal): This is the principal part of the amount written-off.
 Settlement Amount: When an amount owed on a loan account is disputed, the individual
and lender settle at some amount in between. It’s what the lender believes is owed and
what the individual believes he should pay. This is the amount the individual has agreed
to pay. The rest of the amount is written off by the lender.
Please note: - This FAQs issued for operational guidelines but not to be treated as Policy.
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Home Loan FAQs Annexure - 18
1. What is a home loan?
Home loan is the money borrowed from a bank or a housing finance institution on interest for buying
/ constructing / upgrading a residential real estate property.
2. For what purposes can home loan be sought?
Generally Home loan sought for buying a house or a flat, construction of new house/ bungalow,
renovation, extension and repairs to existing house. Our banks have a separate policy for those who
are going for a more than second house.
The banks usually offer the following types of loans on interest:
 Home Purchase Loan: It is the most common type of loan taken for purchasing a new residential
property or an old house from its previous owner.
 Home Improvement Loan: Home improvement loans are given for executing repair and renovation
work at home.
 Home Construction Loan: These loans are sanctioned to construct a house on a piece of land you have
already owned. The loan approval and application process for these loans is somewhat different from
the other commonly available home loans.
 Home Extension Loan: Home extension loans are offered for expanding or extending an existing
house. To cite a few examples, addition of an extra room, a floor etc.
 Land Purchase Plus Construction Loan: This type of loan is granted for the purchase of a plot of land
for residential purpose subject to completion of construction within 3 years.
 Takeover/Balance Transfer Loan: These loans are availed to transfer one's home loan from one bank
to another. It is usually done to repay the remaining amount of loan at lower interest rates or when a
customer is unhappy with the services provided by his existing home loan provider and wants to switch
to a different bank.in 3 years.
 NRI Home loans: These are specialized loans, structured to suit the requirements of NRI's who wish to
build or buy a home in India.
3. Is it mandatory to have a co-applicant? If yes, who can be my co-applicant?
It is not mandatory to have a co-applicant but having a co-applicant will increase eligibility and chances
of getting the home loan sanctioned. Otherwise as per policy guarantor is needed with matching net
worth. An individual, his/her parents, spouse or even major children can be co-applicant. A co-owner
of your property has to be a co-applicant but a co-applicant need not be a co-owner.
Non Individual organizations like HUF, Trust, a partnership firm, an LLP, and a private limited
company cannot be a co-applicant.
4. What is an under construction property?
An under construction property is one which is in the process of being built up. A property in
such ‘under construction’ property, will gain possession at a future date.
5. What is an EMI?
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An EMI is the 'Equated Monthly Installment', which is the monthly payment that make towards
repaying Home Loan on a specified date until loan is repaid in full. It is calculated in the manner that
in the initial years of the loan, the interest payment is much larger than the principal component
whereas in the latter years of the loan duration, the principal component is much larger.
Repayment of loan in Equated Monthly Installments (EMIs) comprising both principal and interest.
Repayment by way of EMI starts from the month following the month in which borrower take full
disbursement or moratorium period whichever is earlier. (For understanding how EMI is calculated,
please see below).
Loan amount * R * (1+R)^n

(1+R)^(n-1)
R= interest per month (rate of interest per year/12)

n= number of installments
6. What are the different interest rate options offered?
Generally offer either of the following loan options: Floating Rate Home Loans and Fixed Rate Home
Loans. For a Fixed Rate Loan, the rate of interest is fixed either for the entire tenure of the loan or a
certain part of the tenure of the loan. In case of a pure fixed loan (Generally not in offerings), the EMI
due to the bank remains constant. Usually Most of the banks having resetting clause after the certain
period.
Hence, the EMI of a fixed rate loan is known in advance. This is the cash outflow that can be planned
for at the outset of the loan. If the inflation and the interest rate in the economy move up over the
years, a fixed EMI is attractively stagnant and is easier to plan for. However, if customer have fixed
EMI, any reduction in interest rates in the market, will not benefit the customer.
Determinants of floating rate:
The EMI of a floating rate loan changes with changes in market interest rates. If market rates increase,
repayment increases. When rates fall, dues also fall. The floating interest rate is made up of two parts:
the benchmark and the spread. The benchmark is a measure of interest rates generally
(RLLR/MCLR/Base/ BPLR), and the spread is an extra amount that the bank adds to cover credit risk,
profit mark-up etc. The amount of the spread usually constant over the life of the loan. If the
benchmark rate moves up, so does interest rate in most circumstances and have to pay a higher EMI.
Conversely, if the interest rate moves down, EMI amount should be lower.
Also, sometimes banks make some adjustments so that EMI remains constant. In such cases, when
the floating interest rate increase, the tenure of the loan is increased (and EMI kept constant).
Flexibility in EMI:
Some banks also offer their customers flexible repayment options. Here the EMIs are unequal. In step-
up loans, the EMI is low initially and increases as years roll by (balloon repayment). In step-down loans,
EMI is high initially and decreases as years roll by.
Step-up option is convenient for borrowers who are in the beginning of their careers. Step-down loan
option is useful for borrowers who are close to their retirement years and currently make good money.
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7. What is daily reducing balances method?
Borrowers benefit more from a loan that's calculated on a daily reducing basis than on monthly or an
annual basis. In case of daily rest interest is calculated on the outstanding principle balance on the
day, meaning by if any payment is made then immediate effect on principal and interest is visible while
In monthly resets, interest is calculated on the outstanding principal balance for that month. The
principal paid is deducted from the opening principal outstanding balance to arrive at the opening
principal for the next month and interest is computed on the new, reduced principal outstanding. In
case of annual resets, principal paid is adjusted only at the end of the year. Hence, Customers continue
to pay interest on a portion of the principal that has been paid back to the lender.
The interest on home loans is usually calculated either on monthly reducing or yearly reducing or daily
reducing balance by Bank. 'BOM charges interest on daily reducing balance'.
Specifics are mentioned below:-
 Annual reducing method: In this system, the principal, for which you pay interest, reduces at the end
of the year. Thus, you continue to pay interest on a certain portion of the principal that you have
actually paid back to the lender. This means that the EMI for the monthly reducing system is effectively
less than the annual reducing system.
 Monthly reducing method: In this system, the principal, for which you pay interest, reduces every
month as you pay your EMI.
 Daily Reducing method: In this system, the principal, for which you pay interest, reduces from the day
you pay your EMI. EMI in the daily reducing system is less than in the monthly reducing system and a
year is treated as consisting of 365 days irrespective of leap or non-leap year.
8. How does tenure affect cost of loan?
The longer the tenure of the loan, the lesser will be your monthly EMI outflow. Shorter tenures mean
greater EMI burden, but loan is repaid faster. If customers have a short-term cash flow mismatch,
bank may increase the tenure of the loan, and EMI burden comes down. But longer tenures mean
payment of larger interest towards the loan and make it more expensive.
9. What is an amortization schedule?
This is a table that gives details of the periodic principal and interest payments on a loan and the
amount outstanding at any point of time. It also shows the gradual decrease of the loan balance until
it reaches zero.
10. What is pre-EMI interest?
Sometimes loan is disbursed in installments, depending on the stages of completion of the housing
project. Pending final disbursement, Customer may be required to pay interest only on the portion of
the loan disbursed. This interest called pre-EMI interest. Pre-EMI interest is payable every month from
the date of each disbursement up to the date of commencement of EMI.
However, our banks offer a special facility whereby customers can choose the installments they wish
to pay for under construction properties till the time the property is ready for possession or 18/36
months whichever is earlier. Anything paid over and above the interest by the customer goes towards
Principal repayment. The customer benefits by starting EMI payment earlier and hence repays the
loan faster.
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11. What security customers have to provide?
The security for a housing loan is typically a first mortgage of the property, normally by way of deposit
of title deeds. Banks also sometimes ask for other collateral security as may be necessary. Bank also
insist on margin / down payment (borrowers contribution to the creation of an asset) to be maintained
/ made also.
Collateral security assigned to bank could be life insurance policies, the surrender value of which is set
at a certain percentage to the loan amount, guarantees from solvent guarantors, pledge of shares/
securities and investments like KVP/ NSC etc. that are acceptable to bank. Banks would also require
to ensure that the title to the property is free from any encumbrance. (i.e., there should not be any
existing mortgage, loan or litigation, which is likely to affect the title to the property adversely).
12. What does market value of the property mean?
Market value is the fair value of the property that propose to mortgage with us as security against the
home loan avail of. This value is based on the prevailing market conditions and trends.
13. What is own contribution?
Own contribution is the difference between the total value of the home less the home loan borrowers
have availed. It is in effect what borrower pay from his/her pocket to buy the house.
14. What is the process of disbursement in case of a home loan for purchase of an under
construction property?
When home loan sanctioned to buy real estate in an under construction property, Bank will disburse
payments towards its purchase in installments, based on assessment of the progress of construction,
but not necessarily as per the developer’s agreement. We advise in Bank’s own interest to ensure with
the developer wherein payments are linked to the construction work and not pre-defined on a time-
based schedule.
15. How will our bank decide home loan eligibility?
Bank will assess repayment capacity of the borrower while deciding the home loan eligibility.
Repayment capacity is based on borrower monthly disposable / surplus income, (which in turn is based
on factors such as total monthly income / surplus less monthly expenses) and other factors like
spouse's income, assets, liabilities, stability of income etc. The main concern here is to make sure that
borrowers comfortably repay the loan on time and ensure end use. The higher the monthly disposable
income, higher will be the amount one will be eligible for loan.
The amount of the loan depends on the tenure of the loan and the rate of interest also as these
variables determine monthly outgo / outflow which in turn depends on borrowers disposable income.
16. Whether balance transfer with sanction of Higher Loan Amount & extended Repayment Period
is possible?
Yes. Based on the merits of the case and requirements/ eligibility of the borrower, the Bank may
sanction an amount higher than the amount taken over from other bank/ financial institution for
purposes of renovation/ extension/ furnishings. Similarly extended repayment period may be
Page 152 of 159

sanctioned provided that at all times the criteria regarding maximum permissible finance and security
margin under the Bank's scheme are not diluted.
17. Is balance transfer of Home Loan with Home Top Up loan permitted?
Yes. Home Loan with Home Top up loan can be taken over subject to Maximum Loan To Value of 75
% and fulfillment of other terms and conditions of balance transfer.
18. Do women get concessional interest rates for BOM Home Loans?
Yes. There is a concessional interest rate of 0.05% p.a. offered to women borrowers. However, the
two criteria which must be satisfied are:
 Woman should be the sole applicant or one of the co-applicants for Home Loan and woman
should be the sole owner or one of the co-owners of the property proposed to be financed
by the Bank
19. How does BOM housing loan compare with those offered by other institutions?
There is total transparency with regard to the rate of interest and the fees charged by us.
 We offer housing loans with low equated monthly instalments, i.e. substantially less in
repayments as compared to others.
 We have no upper limit. The loan amount is determined by repaying capacity and the value
of property to be financed.
 We offer loans for the longest tenors (up to 30 years) with the flexibility provided to reduce
the tenor by prepaying the loan without any penalty.
 We provide finance for both new and old houses/flats and for construction of houses. Cost of
furnishing the house can also be included in the project cost.
 We levy interest based on daily reducing balance, unlike the annual/monthly reducing balance
method used by several other financiers/banks.
20. What are the various documents needed to apply for a home loan?
You would be required to submit the following documents:

 Proof of Identity: PAN, Driving license, Voter ID, Aadhar Card
 Proof of Income:
o Salaried Applicants: Latest 3 Months salary slip showing all deductions and Form 16 for the
last three years.
o Self Employed Applicants: IT returns for the past 2 years and computation of income for the
last 2 years as certified by a CA
21. How do Customer get benefit if the interest is calculated on a daily reducing balance for BOM
Home Loans?
On an annual reducing balance method, you will continue to pay interest on amounts you repay during
the coming one year as the interest for the year is determined on the basis of the balance outstanding
at the beginning of the year.
In the case of the daily reducing balance, which is the methodology we employ, your interest is
calculated only on the outstanding loan amount, which reduces every time you pay off your EMIs or
make any prepayments. This in essence lowers your effective rate of interest significantly.
Page 153 of 159

22. Are there any other charges that accompany home loans?
Home loans are usually accompanied by the following extra costs:

 Processing Charge: It is the fee payable to the lender upon applying for a loan. It is either a fixed
amount not linked to the loan amount or a percentage of the loan amount.
 Pre-payment Penalty: When a loan is repaid before the scheduled duration, a penalty may be charged
by some banks, which is known as the pre-payment penalty. Our Bank at present does not charge any
pre-payment penalty.
 Miscellaneous Costs: Bank may also ask for documentation or other consultation charges, like
Advocate Fees for Search Title Clearance and Valuer's Fees
23. What are the processing fees charged by the bank?
The following processing fees is applicable on Maha Super Home Loans. In addition to the processing
fee, actual charges towards valuation fee, advocates fee for property search and title investigation
report and stamp duty as applicable.
Processing Fee 0.25% of Loan Amount subject to a minimum of Rs 1000/- plus applicable taxes and
Maximum of Rs 25,000/- plus applicable taxes
24. What is a down payment?
Generally, banking & finance institutions pay around 75% to 85% of the cost of the property bought.
The remaining 25% to 15% of the amount is paid on an up-front basis, which is popularly known as the
down payment.
25. Can customer apply jointly with his/her spouse? Will both our salaries be taken into
consideration for calculating the loan amount?
Yes, salaries can be clubbed for the purpose of calculation of the loan amount. This can be done either
when the property is jointly held with the spouse or the spouse stands as a co-applicant. Thus, we
ensure a great deal of flexibility in the entire exercise of financing house.
26. What is the normal time required for disbursement of a home loan?
On an average, loans are disbursed within 3-10 days after satisfactory and complete documentation
and completion of all the required procedures.
27. Can Customer sell the property even when the home loan is outstanding?
Yes, Customer can sell the property with the prior consent of the financing bank.
If the buyer wants to take a loan to buy the property, the process is much easier if he/she approaches
the same bank. In these cases, the bank does not need to release the property papers to another bank
before getting the payment.
If the buyer wants to make a payment outright, he can make it to the bank directly. The property
papers will be released only after the bank has recovered the entire loan amount and other dues
28. Can Customer be given an in-principle approval and actually avail of the loan later?
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Before customer choose the house he/she want to buy, we give an in-principle approval based on
customer’s income and capacity to repay. This makes the entire process of identifying and buying a
house easier and more flexible.
29. What does a home insurance policy cover?
Home insurance policies cover the house structure as well as its contents or possessions. Many
insurance policies also combine various personal insurance features too.
30. What are the types of insurances available with Home Loan?
i. Term Insurance product is offered by Life Insurance Company which offers financial coverage to the
term life insurance policy holder for a specific time period. In case of death of the insured individual
during the policy term, the death benefit is paid by the company to the beneficiary.
ii. Property insurance is offered by General Insurance Company that covers private residences and
protects them from unpredictable damages and natural disasters.
31. What is covered under personal possessions?
Under personal possessions, home insurance companies generally cover furniture,

electronic/electrical gadgets and jewellery under personal possessions. However, the maximum
liability of these items depends upon the type of insurance cover sought or valuations done by the
bank.
32. How do banks value the property for insurance purposes?
Property valuation is done by multiplying the built up area of the property with the cost of
construction per square feet. This is the usual method followed by most banks.
33. What precautions do we need to take if customers are purchasing a property that is not a newly
built one?
Ensure that the documents being provided to bank are not colour photocopies. Check the online site
such as Registrars to verify title deeds, CERSAI etc. for other modus operandi to fraud and ensure
clear title to the asset.
Get the no encumbrance certificate to find the true title holder and if it is mortgaged to any financier.
Obtain all tax papers to ensure that all documents are up to date.
34. Can customer repay loan ahead of schedule? Is pre-payment of loan allowed?
Yes, we allow to repay the loan ahead of schedule by making lump sum payments. We do not charge
a pre-payment penalty if customer deposit more than EMI payable on a periodic basis.
35. What are Switch over charges/ balances transfer charges?
In order to ensure that customers do not approach other banks for availing reduced interest rates, we
allow customers to switch over from a higher interest loan to a lower interest loan by paying a switch
over fees which is lesser than the pre-payment charges. Generally switchover fee is taken as
percentage of the outstanding loan amount.
Page 155 of 159

36. Do Customer get a tax benefit on the loan?
Yes. Resident Indians are eligible for certain tax benefits on both principal and interest components of
a loan under the Income Tax Act, 1961. As per Section 80C of the Income Tax Act, you are allowed
separate deductions on the principal and interest amount of the home loan amount, along with other
entities like ULIP, EPF, PPF, ELSS and NSC's. In case of the principal amount, you can claim a deduction
of up to Rs 1.5 lakhs while in case of interest, it is up to Rs.2 lakhs. The amount of stamp duty and
registration is also eligible for tax deduction, subject to certain conditions.
It is important to note that the tax break can only be claimed for the year in which the construction of
the property has been completed.
37. What are the minimum standards that banks are required to follow for a home loan?
a. At the time of sourcing the loan, banks are required to provide information about the interest
rate applicable, the fees / charges and any other matter which affects customers interest and
the same are usually furnished as MITC (Most Important Term & Conditions) and kept as duly
signed in the loan documents. Complete transparency is mandatory.
b. The banks will supply you authenticated copies of all the loan documents executed by you at
their cost along with a copy each of all enclosures quoted in the loan document on request.
38. What are the eligibility requirements for an NRI seeking a home loan?
 An Indian Citizen holding Valid Indian Passport is eligible for an NRI Home Loan.
 The passport of the home loan applicant should not have NO ENTRY stamp, prohibiting NRI
applicant from entering the country.
 Passport with Valid Entry Visa for NRI applicant where he is appearing in person for submitting
the application.
 For PIO / OCI, in addition to foreign country passport, Valid PIO / OCI Card copy to be
documented.
39. Is power of attorney (POA) mandatory in NRI loans?
 Yes, Resident Indian POA is must in all NRI Home Loans, irrespective of whether the NRI
applicant is present in India at the time of application or not.
 The spouse cannot be a POA holder.
 Resident co-borrower can also be the POA.
 POA can be the co-applicant but it’s not mandatory for POA to be co-applicant when there is
another co-applicant in the loan.
40. Can Borrower authorize someone else to register my property by granting him a Power of
Attorney?
Yes, He/She can execute a Special Power Of Attorney to get your property registered by someone else.
41. What is a Power Of Attorney?
A Power of Attorney allows a person to grant another person the right to make decisions regarding
the person's assets, finances and real estate properties.
Page 156 of 159

There are two types of power of attorney. First, the 'General Power of Attorney' where a property
owner confers 'general' rights. The rights include but are not limited to sell, lease, sub-lease etc. The
second one is the 'Special Power of Attorney' wherein only a specific right is given by the owner to the
chosen person.
42. What documents should be checked by Bank before considering loan for a new property?
 Sale Deed
 Title Deed
 Approved Building plans
 Completion Certificate (For Newly constructed property)
 Commencement Certificate (For Under-construction property)
 Conversion Certificate( If agricultural land is converted to non-agricultural)
 Khata Certificate (especially in Bengaluru)
 Encumbrance Certificate
 Latest Tax Receipts
 Occupancy Certificate
43. What are the number of properties that customers can own?
One can own as many properties as they want.
44. What is meant by a person resident in India?

As per India's Foreign Exchange Management Act (FEMA) 1999, a person resident in India is a person
residing in India for more than 182 days during the course of the previous financial year (April-March)
and who has come to or stays in India either for employment, business or for any other vocation.
45. Who is a Person of Indian Origin (PIO)?
PIO means an individual (not a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran,
Nepal or Bhutan), who at any time has held an Indian passport, or who or either of his parents or
grandparents were a citizen of India according to the Indian Constitution or the Citizenship Act, 1955.
46. Who is an NRI?
As per India's Foreign Exchange Management Act (FEMA) 1999, an NRI or Non Resident Indian is a
citizen of India or a foreign national of Indian origin living outside India for the purpose of employment,
business or any other vocation, which would indicate his intention to stay outside India for an
indefinite period of time. An Indian would also be termed as an NRI if his stay in India is less than 182
days.
47. Are there any tax benefits for Non-Resident Indians buying properties?
No. Tax benefits are available for NRI's only if you file your returns and subsequently become eligible
to avail the tax benefits as mentioned under Home Loan FAQ's.
48. What is the mode of payment for NRI home loans?
The housing loan needs to be paid for the entire tenure of the loan by way of direct remittances from
abroad through normal banking channels or from other financial accounts as may be permitted by
RBI. Generally, payments are done through NRO, NRE, NRNR and FCNR accounts. These accounts
change on the basis of RBI regulations.
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49. What is the repayment period for the home loan for NRI's?
Repayment of the loan is required to be made by the borrower within a maximum period of 30 years
subject to the stipulation that the loan should be liquidated by the age of 60 years or by the age of
retirement, whichever occurs earlier (based on the consideration of person’s retirement age is 60
years). If pension incomes are existing, then up to 75 years can be considered provided it is within
deduction norms.
50. What are the eligibility criteria for obtaining NRI Home Loans?
The eligibility is calculated in the same way as is done for resident Indians with a special emphasis
on:
Individual (s) over 21 years of age with a steady source of income who
 are Non Resident Indians (NRIs) holding a valid Indian passport
 are persons of Indian Origin (PIOs) holding a foreign passport
NRIs eligible for Home Loans under the Scheme may include
1. NRIs, with total work experience of 2 years in India or abroad, who have taken up
jobs/professions/other economic activity abroad for better prospects
2. NRIs with a job contract for a minimum period of 2 years abroad after completion of 6 months
in the employment and presently holding a valid job contract /work permit.
3. Indian citizens working abroad on assignments with foreign Governments/ government
agencies or International/Regional Agencies like the UNO, IMF, World Bank, working with
Merchant Navy etc., Officials of the Central and State Governments and Public Sector
Undertakings deputed abroad on temporary assignments or posted to their offices (including
Indian Diplomatic Missions) abroad
51. Can proceeds of the sale of such properties be remitted out of India?
In case of residential properties, the repatriation of sale proceeds is restricted to not more than two
such properties, if the property was purchased from funds held in an NRE Account.
Additionally, the amount repatriated out of India should not exceed the amount paid for acquisition
of the immovable property in the foreign exchange received through normal banking channels or from
the funds held in FCNR or NRE Account.
52. Can a home/land be sold by an NRI or Person of Indian Origin without the permission of the
Reserve Bank of India?
In case of residential properties, the repatriation of sale proceeds is restricted to not more than two
such properties, if the property was purchased from funds held in an NRE Account.
Additionally, the amount repatriated out of India should not exceed the amount paid for acquisition
of the immovable property in the foreign exchange received through normal banking channels or from
the funds held in FCNR or NRE Account.
53. Can a home/land be sold by an NRI or Person of Indian Origin without the permission of the
Reserve Bank of India?
Page 158 of 159

Yes. The RBI has granted general permission for sale of property. However, wherein another foreign
citizen of Indian origin purchases the property, funds towards the purchase consideration should
either be remitted to India or paid out of balances in non-resident accounts maintained with banks in
India.
54. What should be the mode of payment for purchase of residential/commercial property in India
by an NRI/PIO?
Under the existing general permissions available, an NRI/PIO may purchase residential/commercial
property in India out of the funds remitted to India through normal banking channels or through funds
held in his NRE/FCNR (B)/NRO account. No consideration would be paid outside of India.
55. Can a person resident outside India hold any immovable property in India acquired by way of
inheritance from a person resident in India?
Yes. A person resident outside India can hold immovable property acquired by way of inheritance from
a person resident in India as per the provisions of Section 6(5) of the Foreign Exchange Management
Act, 1999.
56. Do NRI's require consent of the Reserve Bank of India (RBI) to buy immovable property in India?
No. NRI's do not require any consent from the RBI to buy immovable property in India, provided the
property is residential or commercial in nature.
57. Can an NRI/PIO acquire residential/commercial property by way of a gift under the general
permission available?
Yes. Under the general RBI guidelines, NRI/PIO may acquire residential/commercial property by way
of a gift from a person resident in India or an NRI or a PIO.
58. Can an NRI or a PIO or a foreign national of non-Indian origin acquire agricultural land/plantation
property/farm house in India?
No. A person resident outside India cannot acquire by way of purchase agricultural land/plantation
property/farm house in India.
59. Is there any limit on the number of housing properties that an NRI can buy?
No. There is no limit placed on the number of residential properties that an NRI can buy in India.
Bank cannot reject loan application without furnishing valid reason(s) for the same.
Page 159 of 159


Housing Loan Circular

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Housing Loan Circular

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खुदरा ऋण विभाग

Retail Credit Department

Javed Q. Mohnavi Nalini Shriraman

2) Loans for repairs to damaged dwelling units of individuals up to 5 Lakhs in

A family comprising of husband, wife and unmarried children. An adult earning

c) Others (Businessmen): 5 times of last 3 years average Income based on IT

 In case of Proprietary concerns and Professionals & Self-employed, total

 Maximum three co applicants can join for deciding quantum of Loan

10 Scheme For construction / acquiring of new or existing house/flat and extension of

3) Purchase of New Under construction independent house or Flat

II. Scheme for Purchase of Plot & construction thereon

Loan Amount LTV Ratio Minimum Margin

a) In case of salaried individuals, the repayment period may be extended

c) If Construction of House is not started within 2 years, rate of interest will be

Gross Annual Income Permissible Deduction FOIR*

12 Name of the Maha Super Housing Loan Scheme for repairs/renovation/alteration of

IV. REPO Linked Lending Rate (RLLR) Housing Loan

13 Name of the REPO Linked Lending Rate (RLLR) Housing Loan

13.5 Moratorium Moratorium Period

For CRE Housing Loans:

Loan Amount ROI

 Interest will be charged on daily basis with Monthly Rests.

 Current RLLR is 8.45% effective from 01/09/2019.

 Beauty parlor/ Boutique income

4. Purchase of ready built house/flat:

General Instructions for obtaining Mortgages:

Documentation charges– 0.10% of sanctioned amount excluding GST (Max

Inspection / Supervision charges – Nil

Note: Loan request for Non-Salaried Self-Employed Professionals,

 Home Loan – Maximum - 360 Months

1. Takeover of home loans from other Banks/FIs

2. Permissible quantum of Finance for takeover will be lowest of the

S.N Nature of Takeover Maximum permissible LTV Ratio

Loans for multiple houses intended to be rented out

34 Charges for Due Charges for additional due diligence agencies:

Remuneration based on business mobilization during contract period:

Observations of Delhi High Court on Housing Loan

 Project has to be registered under RERA and builders have to be RERA

Disbursements under such approved projects would be only Construction Linked.

Exposure Ceiling in approved project

Project closed/Sold Out:

Categories Parameters Score Max

Bureau Information CIBIL Score 5

Score Range Credit Grade Lending Decision

Categories Parameters Score Max

1. Application form duly complete and signed

10. Property Documents:

11. ADDITIONAL DOCUMENTS FOR NRIs

12. ADDITIONAL DOCUMENTS FOR PIOs

Name of Officer/ Staff:

Designation: Branch Name:

SN. Particulars Details

Date: Name & Signature of visiting official:

Name of Officer/ Staff:

Designation: Branch Name:

1. Loan Account No.

3. Borrower / Co- Borrower/ Guarantor :

Current Residential Address

6. Loan amount sanctioned with date

18. If it is a loan take over, specify the

Sl. Documents Checked Status Remarks

Date: Name & Signature of visiting official:

Sanction No. ----/--/18-19

Ref: - Housing Loan application of Rs _______ (Rupees _ _______)

_Phases _Phases ___Phases