Purpose: This loan finances purchase of new or old residential property and also repair / renovation of existing residential property.
Quantum of Loan: The maximum amount that is granted as home loan is Rs. 50 lakhs. In case of new house /flat, 85% of the cost will be granted as loan. In case of old house / flat only 75% of the cost is granted as loan. In case of self employed individuals, based on the average monthly income as per Income Tax return of last 2 years, the maximum amount to be granted as loan will be decided.
Rate of Interest: In case of EMI scheme, the rate of interest for first year is 8.5% per annum. For the second and third year the rates are 9% per annum and 9.5% per annum respectively.
Repayment: The maximum period of repayment loan is 15 years. In case of salaried persons, the term of loan is decided based on the period of service remaining.
Security: The loan would be secured by equitable mortgage of the property financed by way of depositing title deeds. One personal guarantor is required. Mortgage procedure shall be done by the bank’s approved advocate.