PURPOSE

• Residential houses/flats to be constructed/ purchased by the individuals.
• Residential houses/flats to be constructed by public agencies like HUDCO, Housing Boards, Local Bodies, Co-operative Societies, Builders or Employers etc. for individuals.

Note: In case of unfinished flats or houses, cost of completion/finishing of house/flats shall be considered as part of total project cost.

• Residential  house /flat  to  be  constructed/purchased  by a person who is already owning  a house in the town/village where he resides acquired by availing housing loan from any    bank / FI or otherwise and intends to buy/construct a second house in the same or other town/village for the purpose of self- occupation.
• Residential  house /flat  to  be  constructed/purchased  by a  person  who  intends  to  purchase/construct  a  house  and proposes to let it out on rental basis on account of his posting outside  the  headquarters or  because  he  has  been  provided accommodation by his employer.
• Residential house / flat to be purchased by a person who    is presently residing as a tenant in that house / flat.
• For purchase of a plot only, provided a declaration is obtained from the borrower that he will construct a house on the said plot, with the help of bank finance or otherwise, within a period of 2 years. Advance is not permitted against plots purchased on power of attorney basis
• Supplementary finance in the shape of additional loan may be granted within the overall ceiling for carrying out alterations/ additions/repairs to the houses/flats already financed.
• Finance   for   repairs   &   renovation   of   houses/flats   already constructed with own resources or with housing loan whether liquidated or outstanding
• Housing loan can be sanctioned for purchase/construction of 2nd house.
• Loan can be sanctioned for acquiring third and subsequent house too but such loans shall not be sanctioned under this scheme and are to be dealt as Exposure to Commercial Real Estate (CRE).

ELIGIBILITY

• Individuals having perpetual source of income, who belong to any of the following categories:
  1. 1. Permanent Employees of State / Central Government, Government / Semi-Government Undertakings & Autonomous Bodies.
     2. Employees of Reputed Companies with a minimum of 3 years of service
     3. Professionals, Self Employed Individuals / Businessmen with a minimum 3 years standing in the current profession.
     4. Persons engaged in agricultural and allied activities.
     5. Retired Employees of State / Central Government, Public Sector Undertaking.

  Non-Resident Indians are also eligible for financing under the scheme. Sanctioning authorities to satisfy themselves about the income earned by the Non-Resident and take necessary safeguards for extending finance and regular repayment of such loans.

  1. Others:

  In Case of repairs/renovation/alteration/additions to an ancestral property in the name of either father or mother, who is dependent on son / daughter, loan can be granted to the parent(s) by making the son / daughter as co borrower and his /her income can be taken for computation of quantum of loan.
  However, in all such cases mortgage of house shall be mandatory and all the legal heirs of the father/mother should stand as guarantors to the amount of housing loan.

• Maximum age of Applicant at loan maturity  : 70 years.In case quantum of loan is computed by adding the income of spouse / child(ren), the age of the youngest borrower / co-borrower can be considered for fixing the tenor of loan subject to the condition that his / her contribution towards the EMI is more than 50%.

MARGIN

• For Construction / purchase:

For Purchase of Land / Plot : Borrowers’ contribution (margin) shall not be less than 40% of the cost of land / plot.

• For Supplementary/repairs/renovation/additions/alterations:

MORATORIUM PERIOD

• Maximum 9 months from the date of first disbursement in case of loans sanctioned for construction of house/flat (12 Months for Union Territories of J&K and Ladakh).
•  Maximum   3   months   in   case   of   loans   sanctioned   for repairs/renovations/additions etc.
• Maximum 3 months in case of loans sanctioned for outright purchase of fully built up house / flat/apartment/land for housing purpose.
• Till  the date  of  possession  as  mentioned  in  the  agreement   or maximum    3    years,    in    case    of    under    construction  builder/society flat.

REPAYMENT

• For salaried / professionals:                1 to 30 years (including moratorium period)
• For other customers:                             1 TO 20 Years

Subject to number of remaining years of service in case of employees or till the borrower attains the age of 70 years.