1. Purpose
1.1 Loans under the Bank’s Home Loan Scheme may be granted to individuals to enable them to:
Purchase a plot of land for purpose of construction of house
Purchase /construct a new house/flat
Purchase an existing (old) house / flat or extend an existing house
Repair or renovate an existing house /flat
Furnishing / consumer durables as part of the project cost.
Re-imbursement of investment made from own resources during the preceding twelve months for purchase /construction /repairs /extension of house.

1.2 Loans for more than one house may be granted to an individual provided:

a) Applicant(s) should fulfill the income criteria as also EMI/NMI norm after netting off the repayment obligations of the existing loans and subject to satisfactory conduct of existing loan(s) if any, as evidenced from statement of loan account and CIBIL report, provided sanctioning authority is satisfied about the genuineness of source of income and continuity of repayment capacity of the borrower.

b) If an individual owns two or more houses, singly or jointly then the exposure for the third house onwards / purchase of plot will be treated as CRE Home Loans with higher interest rate. (For further details, reference may be made to CRE Home Loan scheme in Page No. 410)

1.3 Take over of Home Loans availed by an individual borrower from other banks/financial institutions may be considered under certain circumstances after strictly following the procedure laid down in Para.32.

2. Eligibility:
2.1 Individual(s) over 18 years of age with steady source of income*, including persons engaged in agriculture & allied activities.
* In case the property holder i.e.( wife / husband) is not having independent source of income, the income earning spouse may join as co-borrower/guarantor for the loan and his or her income can be taken for arriving at loan eligibility.

2.2. Maximum Age
Maximum age limit for a Home Loan borrower is fixed at 70 years, i.e. the age by which the loan should be fully repaid, subject to availability of sufficient, regular and continuous source of income for servicing the loan repayment. Sanctioning authority is, however, left with discretion to sanction loans to individuals above the age of 70 years, provided son / daughter / spouse, who is a legal heir and preferably below the age of 50 years, with sufficient income for servicing the loan repayment, joins as co-borrower / guarantor. Loan repayment in such cases should be made through a joint deposit account /current account in the names of all the joint borrowers / guarantors. If, the number of co-borrowers in this case increases to more than 3 due to inclusion of legal heirs, the proviso of para 2.3 would not be applicable

2.3. No. of Co-Borrower:
Restricted to maximum 3 including spouse/children/parents/siblings. However, AGM [Region] / AGM (Branch) can relax maximum no of coborrowers provided the repayment is made through an account with us in the joint names of all the borrowers.

3. Maximum Loan Amount:
Loan amount will be assessed on the basis of project cost and permissible EMI/NMI ratio after taking into account of applicable margin but the maximum loan amount shall be restricted to the stipulated LTV ratio, arrived on the basis of assessed value of the underlying property, as given below:
Loan to value (LTV) Ratio for construction linked disbursement Home Loan Amount.

For Home under construction
House ready for possession

Discretionary power for sanctioning concession in LTV
Loan upto Rs. 20 lacs
90% 90%
Loan above Rs. 20 lacs
80% 80%  NIL

For the calculation of LTV ratio, the assessed value of the property is to taken into consideration. In existing tie-ups with builders and other organizations at Circle level, where a lower margin has already been committed by the bank, the Circle will put in place revised arrangements in line with revised norms.

























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