Purpose: This loan finances purchase / repair/ renovation / extension of houses / flats.
Eligibility: Individuals, small businessmen, traders, transport operators, etc. with sufficient capacity to repay the loan are eligible to avail this home loan.
Quantum of Loan: The maximum amount of loan that could be granted to an individual borrower is Rs. 50 lakhs. In case of repairs, additions, alterations of existing house the maximum amount of loan that an individual borrower can get will be Rs.1 lakh in rural & semi urban areas and up to Rs.2 lakhs in urban areas.
Rate of Interest: The rate of interest for loans up to Rs. 25 lakhs is 11% and for loans above Rs. 25 lakhs up to Rs. 50 lakhs is 12%.
Margin: There is a margin of 20% to 25%.
Repayment: Generally the period of repayment of the loan is 10 years to 15 years. Repayment has to be done through monthly installments. There are no prepayment penalty charges for the loan.
Security & Guarantee: Guarantee of person acceptable to the bank is required. Mortgage of the house / flat has also to be submitted as security. Insurance of house property covering fire, SRCC and Natural calamities risk is also required as security.