Retail Banking

Finance Against Mortgage of Immovable Property

PURPOSE:

 

For Business and Personal needs.

(Borrower to disclose specific purpose of loan and also to give undertaking that the loan shall not be used for speculative purposes.

ELIGIBILITY:

 

Personal Needs:

Employees of Central/ State Govt./Schools/Colleges/ Public Sector Undertakings (PSUs)/ Reputed Corporate and Other Income Tax Assesses, who are below the age of 60 years.

Business Enterprise:

Existing and New customers with a satisfactory track record of three years (cash profits during last three years and net profit in the immediately preceding year)

 

INCOME CRITERIA:

 

For salaried and other income tax assesses:

Minimum net monthly salary of Rs.10,000/- for last three years (salaried class)   or minimum net annual income of Rs.1,20,000/- (for other income tax assesses).

For Business Enterprises:

Minimum Net annual income/ Net Profit of Rs.120000/- and above. Further, Interest and depreciation charges will be added back for the purpose of arriving at Net Income/ profit.

Common for both categories:

Income of spouse / earning children / parent’s/ partners/directors can be taken into consideration for the purpose of EMI OR Servicing of interest (for determining loan amount). In such cases, they should be made co-borrowers. However, in case the facility is being considered in favour of Business enterprises (firm), individuals whose income is taken into consideration for monthly installment or for servicing of interest (for determining loan amount) be made Guarantors.

Also income/salary of Directors will not be added for computation of assessment of limit where loan is being allowed to Pvt. Ltd. Co.

 

Regular income from all sources including Rental Income can be considered provided the sanctioning authority is satisfied with the proof of income. In such cases it should be substantiated by proof in the form of Latest I.T. Return/Latest salary slip with Form 16 or Latest salary slip /Statement of A/c for the last six months in which income is being credited on regular basis.

 

For Schools/Educational Institutes/Society

The cash flows are satisfactory and sufficient surplus is available  for repayment of loan along with interest/EMI.

For Trusts

The activity undertaken by the Trust is commercially viable, cash flow is satisfactory and sufficient surplus is available for repayment of loan along with interest/ EMI.

 

NATURE OF FACILITY: 

Term Loan / Overdraft on monthly reducing Drawing Power (DP) basis. 

LOAN AMOUNT:

 

For Personal needs:

Minimum: Rs. 1.00 lakh

Maximum: Rs. 10.00 lakh

For Business needs:

Minimum: Rs. 5.00 lakh

Maximum: Rs. 500.00 lakh

 

REPAYMENT PERIOD:

 

Loan amount together with interest to be repaid in maximum 120 Equated Monthly Installments (EM) OR up to the age of 65.

In case of facility sanctioned in the shape of Overdraft on monthly reducing Drawing Power basis, Drawing Power will be reduced every month with principal component of EMI.

Borrowers are to deposit the amount equal to interest as and when levied plus principal component of EMIs on full sanctioned limit. 

RATE OF INTEREST:

As per bank’s/ RBI guidelines time to time.

SECURITY:

Loans/advances shall be sanctioned against the Equitable Mortgage of the non- encumbered residential House/Flat or commercial or industrial property (in the shape of building/ Industrial Shed) self-occupied or vacant standing in the name of the:

(i)    Individual Borrower or Individual borrower jointly with his/her spouse;

(ii)   Spouse of the borrower;

(iii)  Sole – Proprietorship firms/proprietor of a proprietorship concern;

(iv) Partner of a Partnership firm;

(v)  Karta of HUF/ Proprietorship Concern of HUF;

(vi) Partnership firm;

(vii)  Promoter Director of Pvt. Ltd. Companies.

INSURANCE:

Comprehensive insurance of the property mortgaged for the Re-Construction Cost only, i.e., value of land should not be included for the purpose of insurance.

Cost of insurance to be borne by the borrower. 

UPFRONT FEE:

TERM LOAN: Upfront fee @0.90% of the loan Amount (Maximum Rs45000/-)*

OVER DRAFT: Rs.300* per lakh or part thereof (as applicable from time to time) to be recovered on yearly basis;