||(a) Applicant/Dentist should be member of IDA. Original of IDA membership certificate and photocopy to be submitted. Original will be returned after verification.
(b) Individual-salaried and self-employed Dentist having a legal, identified and regular source of income.
(c) At least one member of the family like, mother, father, son, spouse, brother, sister or daughter as acceptable to the Bank should join as co-applicant.
(d) In case of self-employed Dentist :
- Loan amount upto Rs.5.00 lakh: Satisfactory evidence of sufficient monthly/annual income to be produced by the borrower.
- Loan amount above Rs.5.00 lakh: The borrower should produce Income Tax Return for preceding two years as evidence of income.
||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 (Maximum Rs.25.00 lakh) can 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. Further, the borrower should undertake to repay the entire Loan at commercial rate of interest, i.e. MCLR + 8% from the date of availment of the loan, (MCLR prevailing as on the date), if construction of house has not started till then. Bank at its sole discretion may allow further time not exceeding one year to complete construction with interest being charged at MCLR + 8% on the loan sanctioned for purchase of plot from the date of availment of such loan.
||General Provisions to be complied under DHF Scheme
||(A) Housing Loan for Building Construction :
(i) In cases where the applicant owns a plot/land and approaches the banks/FIs for a credit facility to construct a house, a copy of the sanctioned plan by competent authority in the name of a person applying for such credit facility must be obtained by the Banks/FIs before sanctioning the home loan.
(ii) An affidavit-cum-undertaking must be obtained from the person applying for such credit facility that he shall not violate the sanctioned plan, construction shall be strictly as per the sanctioned plan and it shall be the sole responsibility of the executant to obtain completion certificate within 3 months of completion of construction, failing which the bank shall have the power and the authority to recall the entire loan with interest, costs and other usual bank charges.
(iii) An Architect appointed by the bank must also certify at various stages of construction of building that the construction of the building is strictly as per sanctioned plan and shall also certify at a particular point of time that the completion certificate of the building issued by the competent authority has been obtained.
(B) Housing Loan for purchase of constructed property/ built up property :
(i) In cases where the applicant approaches the bank/FIs for a credit facility to purchase the built up house/flat, it should be mandatory for him to declare by way of an affidavit-cum-undertaking that the built up property has been constructed as per the sanctioned plan and/or building bye-laws and as far as possible, has a completion certificate also.
(ii) An Architect appointed by the bank must also certify before disbursement of the loan that the built up property is strictly as per sanctioned plan and/or building bye-laws.
(C) No loan will be given in respect of those properties which fall in the category of unauthorized colonies unless and until they have been regularized and development and other charges paid.
(D) No loan will be given in respect of properties meant for residential use but which the applicant intends to use for commercial purposes and declares so while applying for loan.
(E) Any Housing Loan extended will be liable to be recalled if it is established that the property financed has been used for a non-residential purpose.
||Quantum of loan
||(a) For construction / acquiring of new or existing house/flat and extension of existing house / flat, no maximum limit is fixed however quantum of loan will be subject to following conditions :
(Cost includes cost of land, stamp duty, registration charges and cost of life insurance cover on the life of borrower for entire tenure of housing loan if taken by the borrower on single premium basis) subject to Net Take Home Pay/Income norm mentioned in Para 6 below. If the borrower does not opt for single premium for insurance he/she should furnish PDCs for the semi-annual / annual insurance premium
- 90% of the cost of construction / purchase of new / existing flat/house or cost of extension of existing house/flat up to 10 years old for loans up to Rs. 25 Lakhs.
- 75% of the cost of construction / purchase of new / existing flat/house or cost of extension of existing house/flat up to 10 years old for loans above Rs. 25 lakhs.
(b) 75% of the cost of repairs/renovations/alterations of existing house/flat subject to a maximum of Rs.10.00 lakh subject to Net Take Home Pay/Income norm mentioned in Para 6 below.
(c) 75% of the cost of purchase of plot subject to a maximum of Rs.25.00 lakh after complying with Net Take Home Pay/Income norm mentioned in Para 6 below. Plot on standalone basis will not be financed. Cost of the plot should not exceed 50% of the total cost of housing unit.
||10% for loan upto Rs.25 lakh
25% for loan above Rs.25 lakh
||Net Take Home Pay /Income Norm
||(a) For borrowers with annual income up to Rs.5.00 lakh, the Net Take Home Pay/Income should not be less than 35% of Gross Monthly Salary/Income after including the income of the co-borrower/s. This can be relaxed up to 30% for borrowers with annual income above Rs.5.00 lakh but up to Rs.10.00 lakh and 25% for borrowers with annual income above Rs.10.00 lakh
(b) Gross annual income shall include only regular income from all sources. Windfall income or income of temporary nature like overtime, etc. will be excluded while arriving at Gross Annual Income, even if such income stream is regular.
(c) Gross annual income can include rent accruals (less taxes, cess, etc.) if house/flat being purchased is proposed to be rented out.
(d) Net Take Home Pay/Income is to be arrived at after taking into account deductions for various loan instalments including the EMI for the proposed loan under DHFS, Provident Fund, Income Tax and other Statutory deductions.
(e) The income stated by the applicants should be backed by documentary evidence.
||(a) Maximum period of 25 years or age of retirement from service or on borrower reaching the age of 70 years whichever is earlier.
(b) In case of extension of existing house / flat, repairs/ renovation / alteration of existing house / flat repayment should be made within a maximum period of 10 years. The instalment will start from the second month of disbursement.
(c) In the case of new construction, repayment will start after 18 months from the date of first disbursement or 6 months, after the date of completion whichever is earlier.
(d) In all other cases, repayment will start from second month of disbursement.
||(a) Equitable/Registered mortgage of the property being financed.
(b) In case of purchase of house/flat from Housing Board/ Society/Builder where mortgage cannot be created immediately, a Tripartite Agreement shall be executed among the Housing Board/ Society/ Builder, Borrower and the Bank. Such Tripartite Agreement, before execution, should be duly vetted by Legal Department of Regional/ Zonal Office ensuring protection of Bank's interest.
(c) Where mortgage of the property being financed is not possible, for instance, in case of purchase of house/flat on first power of attorney, 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.
(d) Minimum 5 post dated cheques for amount of EMI duly signed by the borrower with letter of deposit of advance cheques to be submitted.
||(a) No third party Guarantee is required.
(b) Bank may seek guarantee/ cash collateral if there are deviations in the Net Take Home Pay or in the eligibility norms.
||Rate of Interest
||Rate of Interest on Housing Loan:
|Loan upto Rs.30 lakh
||Above Rs.30 lakh less than Rs.75 lakh
|Up to 5 years
|Over 5 yrs and < 10 yrs
|10 years and above
||ROI for Repairs Renovations
||BR + 0.50% (floating). Maximum Rs.10 lakh -repayable in maximum 10 years with repayment to start from second month of disbursement.
||0.50 %, maximum Rs.10, 000/-.
||No prepayment penalty is levied if the loan is adjusted by the borrower from his/her own sources. However, if loan is taken over by other Banks/Financial Institutes, Prepayment Penalty is charged @ 1.00 % on outstanding balance on the date of such take over.
||In case of loans up to Rs.20 lakhs for self construction of house, amount towards construction of the house can be credited to the borrowers' account in stages subject to satisfactory inspection by Bank Officials at each stage and submission of final certificate by Architect.
If the land/plot is purchased, payment should be directly made to the owner/vendor of the land/plot.
||Take over of loan
||Take over of loan from other Bank/FI is allowed on certain terms and conditions of the Bank.
||House/Flat/Property with building mortgaged to the Bank to be insured for full value with Bank's Clause preferably through Bank's Corporate Agency.
Insurance on the life of the borrower to the extent of outstanding loan is also provided if option for the same is exercised by the borrower. One time life insurance premium payable can be financed by the Bank within overall loan eligibility of the applicant.
||Loans above Rs.75 lakh
||Housing loan proposals of IDA members for loans above Rs.75 lakh can be considered after obtaining clearance from Central Office.