Purpose: This loan finances construction of a house.
Eligibility: Any salaried employee, businessman, agriculturalist, etc. can avail this loan. The age of the applicant should be in between 18 and 55. In case of farmers who are of age more than 55, their legal heirs are co applicants for the loan. Percentage of Equated monthly/ Quarterly / Half Yearly / Yearly installment should not exceed 30% of respective Gross Monthly / Quarterly / Half Yearly / Yearly income of the applicant.
Quantum of Loan: The maximum amount that is granted as home loan is Rs. 20 lakhs irrespective of the area of location of the house.
Margin: The margin of the home loan is at the very least 25% of the project cost.
Security: Guarantee of a person is required. Mortgage of house/flat financed by the Bank shall be the primary security. In case of title of the property being unavailable, collateral security for 150% of the loan amount is required.
Repayment: Repayment period should not exceed 15 years inclusive of required moratorium or initial holiday period up to 18 months from the date of disbursement of first installment of the loan. In case of salaried people loan is to be recovered before retirement of the applicant.