House Repairing Loan for Individual

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House Repairing Loan for Individual

Purpose of Loan

The object of the policy is to provide fund to the Individual for the Repair or Renovation of existing house or Flat.

Eligible Person

a)Teaching and Non -Teaching staff - A permanent salaried employee of any Govt. Sponsored Secondary / Primary School or Sr./Jr. Madrasah / College whose salary is disbursed in our bank account through salary disbursement arrangement under e-PRADAN system.

b)Employees of other Govt. / Semi Govt. / Statutory Bodies( Must be a Permanent Resident of Malda District)- If there is any specific arrangement with concern department following the West Bengal Govt. E-Payment of Salary Scheme (ePS) (Finance Department Audit Branch Notification No 6621 (F)Y Dated : 29th June, 2011) and extended to a permanent salaried Central Govt. employee drawing salary from our Bank

c)Confirmed Employee of Malda District Central Co-operative Bank.

d)Contingent and contractual employee of Malda District Central Cooperative Bank Limited

Terms and conditions:

Deduction criteria for determination of quantum of loan (Salary Account Holder)

a)Teaching and Non -Teaching staff - Total deduction per month inclusive of the instalment is restricted to 60% (Inclusive ECCS loan) of gross pay. Whereas, in deserving cases, where Gross Salary is `35,000/- or more, such deduction may be relaxed up to 70% (Including ECCS Loan)

b)Employees of Govt. / Semi Govt. / Statutory Bodies (Must be a Permanent Resident of Malda District)- Total deduction per month inclusive of the instalment is restricted to 60%.

c)Confirmed Employee of Malda District Central Co-operative Bank- Total deduction per month inclusive of the instalment is restricted to 70% (Inclusive ECCS loan) of Gross Pay.

d)Contingent and contractual employee of Malda District Central Co-operative Bank- Total deduction per month inclusive of the instalment is restricted to 50% of Gross Pay

Loan Type

The loan may be issued single or jointly as a co-borrower.

Age (Single or Joint Co-Borrower)

Minimum age- 18 Years and Maximum Age -58 Years

Category wise Quantum of Loan and Repayment Period

Repayment period of salary account holder restrict to 6 months prior to their retirement.

Category	Loan Amount	Repayment Period(Maximum)
Teaching and Non -Teaching staff, Employees of other Govt. / Semi Govt. / Statutory Bodies ( Must be a Permanent Resident of Malda District), Confirmed Employee of Malda District Central Co-operative Bank	12 Lakhs	10 Years
Contingent and contractual staff of Malda District Central Cooperative Bank Limited	5 Lakhs	10 Years

Borrower Contribution (Margin Money)

Category	Borrower Contribution
Teaching and Non -Teaching staff, Employees of other Govt. / Semi Govt. / Statutory Bodies ( Must be a Permanent Resident of Malda District), Confirmed Employee of Malda District Central Co-operative Bank	20%

* Charges e.g. stamp duty, registration charges and other documentation charges shall be borne by the borrower and it shall not be considered towards margin money.

Repaying Capacity and optimum EMI deduction

The income of the spouse or the joint borrower can be added for determining the income for the purpose of borrowers` repaying capacity. In such cases, they should be a co-borrower.

In case of borrower wants to club the income of his/her spouse for availing optimum EMI deduction (more than deduction criteria mentioned above) for proposed Home Loan i.e upto 85% .(A notarised affidavit needs to be taken from spouse.) This facility is available for Confirmed Teaching and Non -Teaching staff of School & Colleges but Employees of other Govt. / Semi Govt. / Statutory Bodies are not entitled to avail this facility of optimum EMI Deduction.

Rate of Interest

As per Annexure -1 (Rate of Interest)

Nominal Membership :

``0.50 per thousand subject to minimum of `50.00 & maximum of `5,000.00 (As per bye-law of the bank). Provided that such membership fee as above shall be collected once only at the time of the first sanction of the loan & shall not be collected consequent upon enhancement of the loan component on subsequent occasions.

Securities

Salary of the Employee, Leave Salary, Gratuity and all other receivables.

Two guarantors (at least one permanent salary holder) acceptable by Branch manager.

Equitable mortgage of the property for which loan to be issued. (However if the house is already been Mortgaged then 2nd or Consecutive charge may be created. In case of 1st charge created in other Bank then in that case an acknowledgement needs to be submitted by Borrower to the said Bank.)

Insurance

Loan should be fully covered by our Group Insurance Policy

Group Insurance Policy is optional for Staff.

Charges

Form Cost `300/- but not applicable for Staff

Property Related Pre Sanction Documents

Original document of title to the property.

Estimation of Repairs and Renovation of House / Flat by an Engineer.

Documentation

Document	Form No	Purpose of use
Common Application Form		Part of Application Form
KYC Details of Borrower/ Co-Borrower / Guarantor		Part of Application Form
Verification of Service, Pay etc. of Borrower/ Co-Borrower		Part of Application Form
Verification & Assessment of Guarantor		Part of Application Form
Application for Nominal Membership		Processing of Loan
Letter of Authority to Employer		Letter authorising DDO / Employer by the Applicant for deduction of Loan Instalments from Salary / Retirement Benefits
Letter to DDO / Employer about Loan & Confirmation.		Letter to DDO / Employer by the bank for consent on the basis of Authority given by the Borrower.
Confirmation from DDO / Employer		Confirmation from DDO / Employer
Declaration by affidavit by Borrower		Declaration should be taken before Branch Manager on Rs.10/- NJS.
SI / ECS Instruction		As a part of Loan Documents.
Agreement of Home Loan		To be executed on NJS Rs.100/-
Letter of Guarantee		To be executed on NJS Rs.100/-
Mortgage agreement		Letter of Lien & Set-Off
Time Promissory Note		On Rs.1/- Revenue Stamp
Closure Letter – Along with CTS Cheque		Closure Letter to be obtained from Borrower whose permanent residence is Outside Malda and for non-salaried Individual. Blank CTS cheque must be on other bank. This letter & cheque can only be used if the borrower takes transfer in other district / default in repayment of loan.
Loan Processing & Assessment of Amount of Loan that may be Sanctioned	HRL-I	Processing of Loan
Sanction Letter	HRL-II	Processing of Loan

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