PURPOSE

For construction of the House or purchase of house/flat. Loan can also be extended for purchase of land/plot for house building

ELIGIBILITY

Individuals. Joint owners are also eligible

EXTENT OF LOAN

a)       Need-based loan, maximum of  Rs.15 lacs, in rural, semi-urban and in urban areas for construction of house or purchase of house/flat depending upon the project cost and repaying capacity of the borrower.  However, maximum amount of Rs.2 lacs can be sanctioned for purchase of land/plot for house building.

b)      For repairs / renovation / additions / alterations, the maximum amount of loan shall not exceed Rs.5 lacs.

Margin

MARGIN

a)       For construction of house or purchase of house/flat or for carrying out repairs/ renovation/additions/ alterations to existing house/ flat: 20%*.   

b)For purchase of land/plot for house building:       40%.

Security

a) Equitable/registered mortgage of the property.

b) Suitable guarantee acceptable to the Bank may be obtained which may also include guarantee from family members/other relatives.

REPAYMENT OF LOAN

a)Loan alongwith interest is to be re-paid in equated monthly instalments within a maximum period of 20 years, inclusive of moratorium period, if any.  Moratorium or repayment holiday may be permitted where the house/flat are constructed till completion of construction or 18 months from the date of disbursement of first instalment of the loan, whichever is earlier.   

  b)     In case of purchase of ready built house/ flat or land/plot, the repayment to start after the date of possession or 3 months from the date of advance whichever is earlier.