Equitable Mortgage (under sole charge to the Bank) of residential house / flat, commercial or industrial property, non-agricultural boundarised & well demarcated plot in the name and possession of the borrower.
For loan up to Rs.20.00 lakh the market value of the property should be at least 150 % of loan amount and Realisable Value should be minimum 120% of the loan amount.
For loan above Rs.20.00 lakh, the market value of the property should be at least 200% of the limit and Realisable Value should be minimum 150%.
The property in the name of spouse / blood relative can be taken as security subject to their joining as co-borrower or guarantor, for financing to individuals, proprietorship and partnership firms. Property in the name of the Company or its Director/s can be accepted as security for financing to Company with personal guarantee of the owner Director of the property.
Liquid security in lieu of property, irrespective of loan amount, may be obtained in the form of
i NSC with accrued value (inclusive of interest) to the extent of 125 % of loan amount (i.e. margin 20%)
ii Time Deposit of Bank including accrued interest / Surrender Value of LIP-to the extent of 112% of loan amount.(margin 10%)
iii Securities viz. Bonds issued by Govt./Banks with to the extent of minimum 133% of loan amount (margin of 25%) can be accepted as per Bank's Loan Policy.
Liquid Security as above can be in the names as applicable for immovable property as mentioned above. The security offered can also be a combination of immovable property and/or any/more of the liquid security with margin as mentioned above.