Indian Government Schemes

Understanding Home Loans

• A home loan, also known as a housing loan, is a loan provided by financial institutions to individuals or families for purchasing new or old houses or constructing residential properties.
• It allows borrowers to acquire a property by providing a portion of the purchase price upfront and repaying the remaining amount, plus interest, over a specified period.
• Home loans typically have lower interest rates compared to other forms of borrowing, making them an attractive option for aspiring homeowners.

Home Loan Products

• Bandhan Home Loan Center offers a range of loan products for different segments, including:
  • Home Loans for purchase, construction, repairs, or renovation of dwelling units.
  • Loan Against Property (LAP).
  • Insurance Premium Funding.
  • Balance Transfer and Top-up.
  • Construction Finance.

SURAKSHA Home Loan

• Purpose: Suraksha is given for the purpose of purchase and/or construction of residential properties to individuals with formal income proof.
• Segment: Salaried/Self-employed Professionals, NRIs, Partnership firms/LLP, Private Limited companies, Closely Held Public Limited company, Association of Persons, Corporate Body, HUF, Trust/Society.
• Formal Income proof includes:
  • Salary slips/certificate of last 3/6 months (for salaried class) reflecting PF deduction and/or Form 16.
  • Profit & Loss Accounts and Balance Sheets (for business class).
  • IT returns filed in respective years showing sufficient income.

SURAKSHA Eligibility Parameters

• Minimum Income: Rs. 8000/- p.m.
• Properties not eligible for Suraksha include:
  • Hostels, guest houses, parks, zoos, amusement parks, etc.
  • Properties held by minor/Trust.
  • Residential Basement property/Unapproved basement.
  • Schools, colleges, farmhouses, religious structures, etc.
  • Agriculture Land/Property.

SAJAVAT-Repair Loan

• Purpose: Internal/external repairs and structural improvements of existing residential units.
• Repair includes:
  • Plastering/painting of walls.
  • Flooring.
  • Roofing.
  • Bathroom plumbing.
  • Tile work.
  • Construction of kitchen platform.
  • Electrical fittings.
• Income Proof: Formal proofs as defined in SURAKSHA, Appraised Income Working as elaborated in SUVIDHA.
• Eligibility parameters:
  • Minimum Income: Rs. 8000/- p.m.
  • Maximum Loan Amount: Rs. 10 Crore.
  • Minimum Loan Amount: Rs. 1 Lakh.
  • Maximum Loan Tenure: 30 years.
  • Minimum Loan Tenure: 1 year.
  • Maximum FOIR (%): As per DOP grid mentioned in CAAM.
  • Maximum LTV (%): As per DOP grid mentioned in CAAM but not more than 80% (for some categories) and 75% (for other categories).
  • Age of Applicant: Minimum age 18 years (Non-financial Coapplicant) and 21 years (Financial Coapplicant).
  • Maximum age at the time of loan maturity: 75 years (For Financial Coapplicant) and 90 years (For Non-financial Coapplicant).

FOIR Calculation

• FOIR (Fixed Obligation to Income Ratio) is the ratio of customers' fixed commitment to income.
• It is calculated by considering the other fixed obligations of the customer which are currently due.
• The institution assumes that the borrower can pay a maximum EMI of 35% to 45% of their monthly income.

Calculation of LTV

• Loan to Value Ratio (LTV) is used to calculate loan eligibility based on the market value of the property.
• LTV is calculated by dividing the loan amount by the market value of the property.
• For example, if the loan amount is Rs. 20,00,000 and the market value of the property is Rs. 30,00,000, the LTV ratio would be 66.67%.