House Building Loan for Individual

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House Building Loan for Individual

Purpose of Loan

The object of the policy is to provide fund to the Individual (Salaried & Non-Salaried) for the following purpose: i) Construction of house/ flat; ii) Purchase of built house/flat iii) purchase of under construction house/flat iv) Construction for additions to the house.

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- 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) Para Teachers / Part Time Teacher - Para Teachers / Part Time Teacher of Govt. Sponsored Secondary / Primary School or Sr. / Jr. Madrasah / College whose jobs are declared as permanent in nature by the Govt. of West Bengal and drawing salary from our Bank.

d) Non-Salaried person- A person whose salary arrangement is not with our Bank and any other Individual who has sufficient repayment capacity.

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 - Total deduction per month inclusive of the instalment is restricted to 60%.

c) Para Teachers and Part time Teachers - Domicile in Malda District- Total deduction per month inclusive of the instalment is restricted to 50%.

General

i) The loan may be issued single or jointly as a co-borrower. ii) Service period of Salary Account holder drawing salary from our Bank should not be less than 3 Years. iii) Loan may be taken more than one time.

Age (Single or Joint Co-Borrower)

Minimum age- 18 Years and Maximum Age -55 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(Minimum)	Repayment Period(Maximum)
Teaching and Non -Teaching staff, Employees of other Govt. / Semi Govt. / Statutory Bodies	45 Lakhs	3 Years	30 Years
Para Teachers / Part Time Teacher	15 Lakhs	3 Years	15 Years
Non-Salaried person	10 Lakhs	3 Years	15 Years

Borrower Contribution (Margin Money)

Category	Loan Amount	Borrower Contribution
Teaching and Non -Teaching staff, Employees of other Govt. / Semi Govt. / Statutory Bodies	Upto 15 Lakhs	15%
Teaching and Non -Teaching staff, Employees of other Govt. / Semi Govt. / Statutory Bodies	Above 15 Lakhs	20%
Para Teachers / Part Time Teacher		10%
Non-Salaried person		10%

* 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.

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

a) Salary of the Employee, Leave Salary, Gratuity and all other receivables ( Salary Account Holder ).

b) Two prominent salary holder guarantors acceptable by Branch manager.

c) Equitable/registered mortgage of the property for which loan to be issued.

d) Term Deposit, NSC/KVP, Life Policy (surrendered value) consisting of 25% of loan amount (Non-Salaried person)

Insurance

a) Loan should be fully covered by our Group Insurance Policy

b) Property Insurance (Optional)

Charges

a) Fore-Closure of Loan within 03 year: Charges should be implemented as 0.05% of loan amount remaining or `1,000/- (whichever is higher).

b) Loan Processing Charges is 0.05% of Loan amount.

c) Form Cost `100/- .

Property Related Pre Sanction Documents

a) Original document of title to the property.

b) Permission for construction (where applicable) .

c) Registered or Notarised Agreement for Sale /Allotment Letter/Stamped Agreement for Sale .

d) Approved Plan copy (Xerox Blueprint) & Registered Development Agreement of the builder, Conveyance Deed (For New Property) .

e) Approved estimate for Construction of house ? Valuation Certificate for purchase of 2nd hand house or flat.

f) Searching Report from Bank’s panel of lawyer .

g) Mutation/Conversion of the said land .

h) Current tax receipt of the said land(viz. LR + municipal or panchayat tax) .

i) In case of purchase of Flats from Developers, Agreement of Sale of Undivided share of land (if registered, then registered sale deed), Construction agreement in case of Flats under construction, Copy of the agreement between the builder/developer and purchaser / applicant, NOC from the financing Bank for release of their charge on the Flat, Tripartite agreement between the Builder/Bank/applicant wherever necessary.

j) In case of construction of house/ Repairs and Renovation, Estimation duly approved by Panel Engineer. In case of Plot loan, copy of approved lay out of the plots (duly approved by the competent authority.

Pre Sanction Documents in case of Take over loan from other Bank

a) Copy of original sanction letter, Additional sanction letter if any.

b) Latest Balance outstanding letter from the erstwhile lending institution.

c) Confirmation from the lending institution that the account is a Standard asset and the balance outstanding as on date, charges if any, and their willingness to handover the documents to Bank if the amount is paid in full along with list of documents held with the erstwhile Bank.

d) Latest property tax and other statutory tax paid receipts.

e) Statement of Home Loan account from the date of first disbursement of loan.

f) The property should have been constructed as per the approved plan without deviations.

g) Copy of the property title deeds, latest tax paid receipt, Encumbrance Certificate.

Additional Document

Proof of income- Self Attested Income tax return (Latest 3 financial Years) and Annual Financial Statement (Audited if applicable) , which is optional for salary account holders of our Bank.

Loan account statement of last 1 year for take over housing loan from other Bank.

Any other documents/information depending upon the case and purpose of the loan which is required and acceptable by Branch Manager.

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
Lien /Assignment/ Pledge
Time Promissory Note		On Rs.1/- Revenue Stamp
Affidavit on Sanction Plan
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	HBL-I	Processing of Loan
Sanction Letter	HBL-II	Processing of Loan

All scheduled and non-scheduled banks - public, private, foreign, cooperative, regional rural and local area banks - will observe public holiday on second and fourth Saturdays from September 01, 2015; and will observe full working days on Saturdays other than second and fourth Saturdays (referred to as working Saturdays in the Press Release). Consequent to this, the Reserve Bank of India has announced the following changes in its functioning with effect from September 1, 2015.