Purpose: The scheme offer loans to people to avail loan for purchase of house or flat, besides repairs or extension of existing houses.
Eligibility: Individuals and housing boards undertaking housing project or schemes are eligible to receive finance under the scheme. The borrower must have permanent source of income, repayment capacity and should be prepared to contribute 20%-25% towards cost of flat/renovation/repairs/extension.
Borrowing Capacity: The amount of borrowing depends upon one’s income. In case of married person the income of spouse can be clubbed to determine the loan amount.
Individual Limits: The maximum quantum of loan to individual borrowers under the scheme for the purchase of house is Rs 50.00 lakhs. For repairs, additions, alterations maximum amount of loan for individual borrower is Rs.1.00 lac in rural & semi urban areas and up to Rs.2.00 lakhs in urban areas.
Period of Loan: The tenure will be ten years and fifteen years forexceptional cases.
Interest: Interest charged on home loan varies according to the repayment of the principle, it can be monthly rests on daily products basis. This means that whenever any amount is repaid, it reduces the interest liability. However in case of delay in payment of stipulated installments, one is liable to pay penal interest on amount in arrears. The advance can be repaid in EMI.
Prepayment: One can deposit amounts over and above stipulated installments in loan account. Bank does not levy any pre-payment charges unlike many other agencies