1

 Purpose

(a)    For construction / acquiring of new or existing house/flat not older than 30 years.

(b)   For extension in the existing house/flat.

(c)    For repairs/renovation/alteration of existing house/flat.

(d)   Finance may be granted for purchase of plot obtaining declaration from the borrower that he/she/they undertake to construct the house on the plot within the period of two years. 

2

 Eligibility

All Permanent Employees of of  Central/State Governments, PSUs of Central Government.

3

Quantum of loan

a)      90% (for loans upto Rs.20 lakh) and 80% (for loans above Rs.20.00 lakh) of the cost of construction / purchase of new / existing flat/house or cost of extension of existing house/flat,(including cost of land)  subject to Net Take Home Pay/Income norm mentioned in Para 6 below. (Stamp duty, registration and other documentation charges, cost of life insurance cover on the life of the borrower should not be included in cost of housing unit).

b)      75% of the cost of repairs/renovations/alterations of existing house/flat subject to a maximum of Rs.10.00 lakh.

• 75% of the cost (registered value) of  Plot after complying with Net Take Home Pay/Income norm.  Plot on standalone basis should not be financed.  Cost of the Plot should not exceed 75% of the total cost of housing unit..

4

Net Take Home Pay

• Borrowers with Annual Income up to Rs. 5 lacs - 35% of Gross Monthly Salary / Income after including the income of the co-borrower/s.
• Borrowers with Annual Income of Rs. 5 lacs to Rs.10 lacs - 30% of Gross Monthly Salary / Income after including the income of the co-borrower/s.
• Borrowers with Annual Income above Rs. 10 lacs - 25% of Gross Monthly Salary / Income after including the income of the co-borrower/s.
• Tax benefit accruing from proposed housing loan may be taken into consideration at the time of arriving at loan eligibility and Net Take Home Pay / Income.

5

 Margin

Loan up to Rs.20 lakh - Minimum 10 %.

Loan above Rs. 20 lakh - Minimum 20%.

6

Security

(a)    Equitable/Registered mortgage of the property being financed.

(b)   Where mortgage of the property being financed is not possible, other tangible securities such as mortgage of some other property, pledge of bank's FDR/ LIC policy/Govt. Securities, NSCs, KVPs, IVPs, Bonds, etc. equal to 125% of the loan amount may be taken as security provided in all such cases, the loan repayment cash inflow is clearly demarcated.

7

Guarantee

Condition of Guarantee is waived.

8

Repayment

(a)    Maximum period of 30 years. the EMI may be fixed elongating repayment period up to 70 years of age or 30 years maximum in case house not older than 10 years  or 25 years if the flat/house is older than 10 years. In the case of new construction, installments will start after 36 months from the date of first disbursement or 6 months, after the date of completion whichever is earlier.  In other cases, installments will start from second month of disbursement.

9

Rate of  

Interest

                              Rate of Interest on Housing Loan is as under:

Loan upto Rs.30 lakh

Above Rs.30 lakh

upto Rs.75 lakh

Loan above Rs. 75 lakhs

Tenure

Floating

Floating

Up to 5 years

BR

BR

BR + 0.25%

Over 5 yrs and less than 10 yrs

BR

BR

BR + 0.25%

10 years and above

BR

BR

BR + 0.25%

10

Processing   Charges

0.50% of the loan amount subject to maximum of Rs.20,000/-

Processing Fee is waived in the cases where the employees are maintaining salary account with our Bank.

Processing Fee is also waived in the cases where the salary disbursement account are with the other Banks as per the arrangement of Central Government Organisation provided the borrower government employee gives standing instruction to the concerned Bank to transfer the entire salary credit to his savings account with our Bank.

11

Prepayment      Charges

No prepayment charges on floating rate housing loans.

12

Take over of loan

Take over of loan from other Bank/FI is allowed

13

 Others

Undertaking to deduct housing loan EMIs from the salary of the Central Government Employees / Terminal Benefits to be obtained from the concerned department prior to the disbursal of the loan.