Loans/Housing Loans

Eligibility

Home Loan

1. You must be at least 21 years of age when the loan is sanctioned.
2. The loan must terminate before or when you turn 65 years of age or before retirement, whichever is earlier.
3. You must be employed or self-employed with a regular source of income

Office premise loan

1. You must be at least 21 years of age when the loan is sanctioned.
2. The loan must terminate before or when you turn 65 years of age.
3. You must be self-employed with a regular source of income.
4. The loan can be for the purchase / construction / extension of a non-residential property.
5. A loan for renovation or improvement will be given only at the time of acquisition of property.
6. Professionally qualified and self-employed individuals can apply.
7. A minimum of 3 year’s work experience is a must.

Loan Amount

A number of factors are taken into account when assessing your repayment capacity. Your income, age, number of dependants, qualifications, assets and liabilities, stability/ continuity of your employment / business is some of them.
However, there are ways by which you can enhance your eligibility.
1. If your spouse is earning, put him/her as a co-applicant. The additional income shall be included to enhance your loan amount. Incidentally, if there are any co-owners they must necessarily be co-applicants.

2. Did you know that your fiancée’s income can also be considered for sanctioning the loan on your combined income? The disbursement of the loan, however, will be done only after you submit proof of your marriage.

3. Providing additional security like bonds, fixed deposits and LIC policies may also help to enhance eligibility.
While there is no need for a guarantor, it could be that having one might enhance your credibility with us. If so, our loan officer would provide you with the necessary details.
The final amount to be sanctioned will depend on your repayment capacity. However, what you ultimately are entitled to will have to conform within the limits fixed for each loan.
Also, when the company looks at the total cost, registration charges, transfer charges and stamp duty costs are included.

Sanctioning

Documents

1. Passport size photograph
2. Age verification: PAN card, Voters ID, Passport, License
3. Bank statement for the last six months
4. Income Documents e.g. Latest Form 16, Certified IT returns for latest 3 years
5. Admin fee cheque
6. Loan enclosure letter
7. Address Proof
8. Last 3 months salary slips (salaried person)
These are the documents required for sanctioning a loan. You may be asked to submit further legal documents if required by the Bank or its approved lawyers. Do retain photocopies of all documents being submitted by you.

Disbursement

Your loan will be disbursed after you identify and select the property or home that you are purchasing and on your submission of the requisite legal documents.
While you may be under the impression that the list of documents asked for is rather extensive, please note that it is for your own good. Each and every single document asked for will be verified and checked to ensure your safety.
This may take some time but we want to ensure a clear title and will complete all the legal and technical verifications to ensure that you have full rights to your home.
The 230 A Clearance of the seller and / or 37I clearance from the appropriate income tax authorities (if applicable) is also needed.
On satisfactory completion of the above, on registration of the conveyance deed and on the investment of your own contribution, the loan amount (as warranted by the stage of construction) will be disbursed by Bank. The disbursement will be in favor of the builder/seller.
List of documents for disbursement Standard documents:
1. Loan Agreements
2. Disbursement Requests
3. Post-dated cheques
4. Personal guarantor’s documents, as the case may be
Some documents are specific to each case.

Repayment of Loan

What is the repayment tenure?
1. Home Equity Loans – Maximum loan tenure of 15 years.
2. Office premise loan – Maximum loan tenure of 15 years.
3. Home loan – Maximum loan tenure of 30 years.

How is the loan repaid?
All loan repayments are done via equated monthly instalments (EMI).

What is an EMI?
An EMI refers to an equated monthly instalment. It is a fixed amount which you pay every month towards your loan. It comprises of both, principal repayment and interest payment.

When does the repayment start?
EMI payments start from the month following the month in which the full disbursement has been made.

How is the EMI paid?
The EMI is to be paid every month through post-dated cheques (PDCs) or direct deductions from your salary. If you are opting for PDCs, then you will have to provide 36 upfront. The PDCs are to be dated on the 1st of every month. However, if you receive your salary a few days later, no problem, there are some flexibilities of dating the cheques, which depends on that financial institution’s rules & regulations.

What if a PDC bounces?
In the case of a bounced cheque or delayed payment, charges and outstanding dues will be charged as per the prevailing company policy. You can replace old PDCs with new ones within 5 – 7 working days.

What is pre-EMI interest?
In the case of part disbursement of the loan, monthly interest is payable only on the disbursed amount. This interest is called pre-EMI interest (PEMI) and is payable monthly till the final disbursement is made, after which the EMIs would commence.

When do I pay PEMIs?
The first PEMI is payable by cheque by the end of the month in which the disbursement is madeand each subsequent PEMI at the end of every month till the commencement of EMI.

When does the repayment start?
EMI payments start from the month following the month in which the full disbursement has been made.

Application Process

The moment you decide to buy a home, you can put in your application. Yes, you can apply for a loan even before you have selected the property. The property need not even be in the same city where you are residing.
Should there be a change in your financial status or plans, you can withdraw your sanction within 6 months of approval