Purpose: This home loan finances construction, purchase, extension, renovation of a house or purchase of plot for residential purpose from Government recognized agencies like HOUSEFED, HUDA, etc. This loan can also be taken for taking over loans from other financial institutions.
Eligibility: Any individual with a steady and sufficient income to repay the loan can avail this home loan. In case of purchase of an old house, the house should not be more than 20 years old,
Rate of Interest: There are fixed and floating rates offered by the bank.
Repayment: The maximum period of repayment incase of salaried employees is 20 years or remaining period of service whichever is earlier. In case of others the maximum period of repayment is 15 years or until age of 65, whichever is earlier. Loans taken for repair, renovation or extension of a house, the maximum period of repayment is 7 years. The repayment period is exclusive of the moratorium period.
Security: The primary security for the loan is mortgage of the property. Collateral security in the form of personal guarantee of a person acceptable to the bank is required in case mortgage is already provided. In case there is a delay in producing the mortgage, then personal guarantee of two people acceptable to the bank is required instead of one.