HOUSING LOANS

Purpose Loans may be granted to individuals for the following purposes.
i.Purchase or construction of a new house /flat.
ii.Purchase an existing [old] house/flat or extend an existing house.
iii.In case of old houses which are up to 25 years old, the residential life of the house should cover the period of repayment. The same should be certified by an approved valuer on the panel of the Bank.
iv.Repair /renovate an existing house/flat.
v.Purchase a plot of land for the purpose of construction of a house.
vi.Purchase of furnishings/ consumer durables as part of the project.
vii.Rain water harvesting, as a part of the project cost.
viii.Solar lighting system, as part of the project cost.
xi.Solar water heating system, as a part of the project cost.
Eligibility Individual /s over 21 years & up to 60 years of age with a steady source of income, including persons engaged in agriculture & allied activities are eligible for availing loans under the Scheme.
Loan Amount i. The loan amount will be determined by the EMI/NMI ratio, irrespective of the age of the borrower. The loan amount will be decided by the repaying capacity of the borrower/s which comes out as ratio of EMI/NMI.
[EMI ??? Equated Monthly Installment]
[NMI ??? Net Monthly Income]
[NMI = NAI divided by 12]
ii. In case of salaried persons, NMI means monthly income, net of all deductions, including loan repayments & tax deductions at source.
iii. In case of applicants other than Salaried persons, Net Annual Income []NAI] means, annual income as per the latest Income tax return filed, less loan repayments & taxes payable.
iv. In case of agriculturists, Net Annual Income should be arrived at, based on the nature of their activity [e.g., farming, dairy, poultry etc.], land holding, cropping pattern, yield etc., & average level of income derived there from in the area.
Margin i. 25% of the project cost, which may include cost of land, additional amenities, registration fees, stamp duty, cost of rain water harvesting, cost of installing Solar Heating & Lighting Systems, cost of creating Equitable/Simple Mortgage etc., where the total project cost does not exceed Rs.75.00 lakhs

ii. 30% of the project cost, which may include cost of land, additional amenities registration fees, stamp duty, cost of rain water harvesting, cost of installing Solar Heating & Lighting Systems, cost of creating Equitable/Simple Mortgage etc., where the total project cost exceeds Rs.75.00 lakhs
iii. 20% of the project cost in case of repairs/renovation. The same can be reduced to 15%, where check off facility is available.