PUBLIC HOUSING LOAN

Purpose

  • For construction of residential house on land already owned.
  • For purchase of New/Old/Unfinished house/flat and renovation/extension/repair of the same.
  • For purchase of plot and construction of house thereon.
  • For renovation/extension/repair of residential house already owned.

Eligibility: Individuals, salaried persons, professionals & self-employed and businessmen having regular income to liquidate the loan.

Age Eligibility: Minimum: 21 years

Maximum: Age of retirement for salaried class and 65 years for others. However the maximum age by which should be fully repaid is 65 years for salaried persons and 70 years for others.

Maximum Loan Amount

For construction/purchase of new house/flats No maximum limit and depends on income of the applicant. 
Priority Sector Limit: Loan up to Rs. 25 lakh (per family) will be considered as Priority Sector loan.
For repair/renovation of damaged house No maximum limit & depends on the income of the applicant.
Priority Sector Limit: Loan up to Rs. 1 lakh in Rural Area &Rs. 2 lakh in Urban area will be considered as Priority Sector loan

Quantum of Eligible Loan

For salaried persons Up to 60 times of Net Monthly Income
For others Up to 5 time of Net Annual Income
Income Eligibility Criteria Income of spouse or co-applicant/son/daughter living with the applicant, provided they have steady income can be clubbed for computing eligible amount.

Margin or Loan To Value Ratio (Margin/LTV Ratio): 20% for the total project cost. Maximum Loan to Value (LTV) ratio is 80%.

Particular Margin (Minimum) Maximum LTV Ratio
Total Project Cost (100%) 20% 80%

Maximum Repayment Period

Age Group Repayment Period (inclusive gestation period)
A. Salaried Persons Length of remaining service: Maximum 20 Years (including extended repayment period up to maximum 5 years after retirement) including gestation period.
For Others  
Persons below 45 yrs of age Maximum: 20 years (including gestation period)
Persons above 45 Yrs Maximum: 15 Years (including gestation period) till attaining the age of 70.

EMI/Net Monthly Ratio: Equated Monthly Installment (EMI) to Net Monthly Income (NMI) ratio shall not exceed 50% for all categories of borrowers.

Moratorium Period (Repayment Holiday):

  • Maximum 18 months: In case of loan for construction of house where land is already owned /purchased and purchase of Flat under construction.
  • Maximum 03month: In case of readymade buildings and flats.
  • Moratorium period is included within the maximum repayment period.

Security: Equitable Mortgage of land and building. Second charge over the property if the borrower has already availed loan from the Bank and other collateral security depending on quantum of loan.

Rate of Interest: Interest on the loan will be charged at prevailing rate of interest on daily reducing balance at monthly rate. The rate of interest is subject to revision from time to time.

Calculation of Interest: Interest on the amount of loan will be applied at the prevailing rate per annum on daily reducing balance at monthly rests.

Processing Fees: A onetime processing fees is payable at the time of documentation only and will be charged at prevailing rate at the time of sanction.

Pre-Closure/Pre-payment Penalty: NIL

Insurance: The house/flat should be insured comprehensively for the market value covering fire, flood, Earthquake etc. in the joint name of the Bank and the borrower. Cost of the same shall be borne by the borrower.