Questions and Answers
What is the maximum loan amount available under the housing loan policy?
When does repayment start for a loan taken for purchasing a ready-built house/flat?
How much of the estimates submitted for construction of an independent house can be considered for loan eligibility?
What is the maximum repayment period for the housing loan?
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What percentage of the SRA value of the land is covered in loan eligibility for flats?
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What is the maximum loan limit for staff assistants?
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Which cadre has the highest loan limit?
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What is the interest rate applicable for loans taken by AGM and above?
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What is the minimum period of employment required to be eligible for a housing loan?
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Which cadre has a loan limit of Rs.30.00 Lakhs?
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What is the maximum age limit for the loan tenure?
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What options does an employee have upon retirement regarding the loan?
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What is the minimum period of left over service required for the loan?
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After deducting the proposed installment, what fraction of the take-home pay should an employee have?
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What financial aspect must be ensured before proceeding with a loan installment?
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What happens upon retirement if the outstanding loan is not settled?
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What is a potential consequence for an employee with less than the minimum required service left?
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Which of the following statements is NOT true regarding the loan upon retirement?
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Study Notes
Housing Loan Policy Overview
- The facility offered is a Term Loan specifically for housing purposes.
- Maximum loan amount is capped at Rs. 75.00 Lakhs.
Eligibility Criteria
- Requires an appropriate credit rating for loan approval.
- Repayment period is a maximum of 240 months or until the borrower reaches 60 years of age, whichever comes first.
Repayment Terms
- Immediate repayment starts for loans on ready-built houses/flats.
- For construction loans, repayment starts 3 months post final installment release or 12 months after the first installment, whichever is earlier.
Interest Rates and Penal Charges
- Interest rates are set according to specific conditions; penal interest may apply under certain circumstances.
Loan Features
- Loans can cover takeovers from other banks or top-up loans for additional funds.
- Loan eligibility criteria allow up to 80% of construction estimates from licensed professionals for independent homes, and 100% of SRA value plus 80% of construction estimates for flats.
Security Requirements
- A-class membership is typically required along with legal and valuation fees.
Disbursement Process
- For ready-built house/flat purchases, the loan amount is disbursed directly to the seller after confirming the borrower's 20% contribution.
Staff Housing Loans Guidelines
- Different loan limits and interest rates based on employee cadre:
- AGM and Above: Rs. 60.00 Lakhs at 7.50% interest.
- A.Ms & Managers: Rs. 50.00 Lakhs.
- Staff Assistants: Rs. 40.00 Lakhs.
- Sub Staff: Rs. 30.00 Lakhs.
Eligibility for Staff Housing Loans
- Permanent employees with at least 2 years of service qualify.
- Tenure of the loan extends to the age of 60 years, with options for retirement handling of outstanding amounts.
- Employees must have a minimum of three years of remaining service for approval.
- After installment deductions, employees should retain at least one-third of their take-home pay.
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Description
Explore the key features of the Housing Loan Policy from SRI Potti Sriramulu Nellore DCC Bank Ltd. This quiz covers eligibility criteria, repayment terms, and the quantum of loans available. Perfect for potential borrowers looking to understand their options.
