Home Loans
Loans shall be sanctioned to the A Class members of the bank, and the applicant should own the land or plot on which the construction is proposed.
Application of Loan
Loan will be available for:
- Construction of new house
- Outright purchase of a house and house site
- Extension or renovation of existing house
Limit of Assistance
The loan amount for construction/outright purchase/remodeling and expansion of houses shall be fixed as a maximum of ₹50 lakhs.
Disbursement
Housing loan shall be limited to 80% of the expenses required for the construction, extension, renovation, or purchase.
- For new construction: 50% of the loan will be advanced initially. The remaining amount will be released in convenient installments after utilization of the first installment. A completion certificate signed by a competent engineer is mandatory.
- For additions and improvements: Loan will be released in convenient installments.
- For outright purchase: The sale shall be registered jointly in the name of the bank and borrower, and payment will be made directly to the seller.
Repayment / Tenure of Loan
The loan shall be repaid in equated monthly installments (EMIs) over a maximum period of 18 years. Borrowers may remit more than one installment or a lump sum at any time. A repayment holiday will be granted until the completion of construction or 12 months from the date of first disbursement, whichever is earlier.
Interest Rate
Collateral Security
Loan will be granted against the mortgage of landed property either by equitable mortgage or registration. The building must be insured at the borrower’s cost and the policy should be assigned in favour of the bank.
Share Linking
Share linking will be 3.5% of the sanctioned loan amount.
Required Documents
- Title Deeds
- Tax Receipts of the property & buildings (if any)
- 20-Year Encumbrance Certificate
- Plan & Estimate of the building (certified by a competent authority)
- Possession Certificate
- Location Certificate and Sketch
- Affidavit cum Undertaking not to violate the sanctioned plan
General Conditions
- Completion certificate to be obtained within 3 months of construction completion
- Bank's valuer's certificate to be obtained at various stages of construction
Authority to Sanction the Loan
The Board of Directors shall have the authority to approve and sanction the housing loan.
