Types of Loan
Demand/ Term Loan against Property
Features:
1 Business expansion.
2 Education / marriage expenses.
3 Construction / Purchase of House.
4 Improvement/ Extension of existing property.
5 Medical Treatment.
6 Any other personal need.
Eligible Customers:
Peoples engaged in trades, commerce & business, professionals, self employed ,individual with high net worth, salaried peoples, proprietary firms, partnership firms, companies (Pvt/Public),societies, staff members HUFs(excluding partnership fir where HUF is a partner).
Advance to individuals
Maximum age limit:
Individual in permanent service is 60 yrs.
For other – Maximum 70 yrs
(Age limit is the maximum at the end of the repayment period)
Loan Amount
Minimum: Rs 1.00 Lacs
Maximum: As per exposure norms.
Subject to the repaying capacity of the borrower
Loan Tenure
Upto 15 years
Applicable rate of interest : As per applicable bank interest.
CALCULATION OF QUANTUM OF ADVANCE:
The loan amount should be evaluated as per the conditions mentioned as under:
| 1 | Salaried Employees | 48 times of monthly average net emoluments (take home salary) based on salary slip/Form 16/Income Tax Return OR 4 times of net annual income with other rental income from property etc. based on I.T returns for last 2/3 Financial Years . |
| 2 | Self employed/Professionals | 5 times of average net annual income of last 2/3 years based on IT Returns for last 2/3 Financial Years |
REQUIREMENT OF NET TAKE HOME PAY FOR LOANS:
For individuals: Net take home pay (net of EMI of proposed advance) not to be less than 50% of gross income of the applicant.
MARGIN (ON VALUE OF PROPERTY):
Value of property for calculation of quantum of advance/determining margin will be lowest of Market value, Distress Sale value, Registration of value of similar property as on date of valuation. The estimated value of proposed construction should also be included while calculating the value of the property.
Documentation Required:
The Following documents are required along with The Application Form to process your Loan Application.
| Salaried Customers | Self Employed Professionals | Self Employed Non Professionals |
| Application form with photograph | Application form with photograph | Application form with photograph |
| Identity and Residence Proof | Identity and Residence Proof | Identity and Residence Proof |
| Latest Salary-slip for last 3 months | Education Qualification Certificates and Proof of business existence | Proof of business existence with copy of registration |
| Form 16/ITR | Last 3 years Income Tax returns | Business profile |
| Last 6 months bank statement | Last 3 years Profit /Loss and Balance Sheet | Last 3 years Income Tax returns |
| Processing fee cheque | Last 6 months bank statements | Last 3 years Profit /Loss and Balance sheet statement. |
| Property Related Documents | Processing fee cheque | Last 6 months bank statements |
| Processing fee cheque | ||
| All Title related Documents along with approved sanction/building plan | ||
Maximum Funding:
1) Up to 55% of the market value of the property (Residential Self Occupied)
2) Up to 50% of the market value of the property (Residential Leased Out)
3) Up to 50% of the market value of the property (Commercial/Industrial)
Processing Fees: As per Bank’s Service Charges Circular.
Other Charges/ Expenses:
Document stamp charges, advocate fees, architect fees etc,on actual basis. Inspection charges should be recovered as per the prevailing guide lines from time to time.
Overdraft Against property loan
The loan against property with overdraft to cater to the need of the business community for meeting their short working capital requirement. This facility will provide the money at the need basis by the business community for purchase / stocking raw materials, payments of salary & wages etc and alsoforfinancing the gap between the supply of goods & payments of receipt thereafter.
Features:
To provide the overdraft facility to the eligible customers to meet the credit needs of the trades, commercial activity.
Eligible Customers:
Peoples engaged in trades, commerce & business, self-employed, individual with high net worth, proprietary firms, partnership firms, companies(Pvt/Public),societies, HUFs(excluding partnership firm where HUF is a partner),Builders & contractors,Merchants,small & medium scale manufactures,
Loan Amount
Minimum : Rs 1.00 Lacs
Maximum : As per exposure norms.
Subject to the repaying capacity of the borrower
Loan Tenure
The facility is repayment on demand & renewable once in a year .In case of unsatisfactory conduct, bank is at liberty to @not to renew (b) recall/reduce the facility.
Applicable rate of interest
As per the Bank.
CALCULATION OF QUANTUM OF ADVANCE:
The loan amount should be evaluated as per the conditions mentioned as under:
| 1 | Individuals engaged in trade/ commerce/ business/Proprietorship/ Partnership/Company/HUFs/Societies (OVERDRAFT UPTO 1 CR) |
5 times of cash accruals (Profit after Tax+ Depreciation) for last 2/3 years. In case of Overdraft- Limit @25% of annual turnover as per Audited/Certified Balance Sheet for last FY. |
| 2 | Individuals engaged in trade/ commerce/ business/ Proprietorship/ Partnership/Company/HUFs/Societies (OVERDRAFT OVER 1 CR) |
25% of annual turnover based on last (F.Y) audited balance sheet of the proponent. Audited/Certified Balance sheet to be obtained for last 2/3 Years.-based on its number of years existence |
Documentation Required:
As mentioned in Demand/ Term Loan against Property.
Maximum Funding:
• Up to 55% of the market value of the property (Residential Self Occupied)
• Up to 50% of the market value of the property (Residential Leased Out)
• Up to 50% of the market value of the property(Commercial/Industrial)
Processing Fees:
As per Bank’s Service Charges Circular.
In Renewal Cases for subsequent year charges will be @ 0.25% of loan amount to extent minimum Rupees 1000/- and maximum Rs. 15000/-
Additional Penal Charges:
In case the borrower has not availed the overdraft facility completely during the year than he has to pay penal charges @ 2.5% of sanctioned amount . For money being made available for upfront requirement. Simultaneously if the borrower in writing intimate the bank for not using the OD for a stipulated time period than the panel charges will not be imposed. Instead of above 2% extra of loan amount will be charge when the bank loan gets take over by the other bank on the request of the borrower.
Other Charges/ Expenses:
Document stamp charges, advocate fees, architect fees etc,on actual basis. Inspection charges should be recovered as per the prevailing guide lines from time to time.
