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What are the purposes of the Cent Home Loan Scheme? (Choose all that apply)
What are the purposes of the Cent Home Loan Scheme? (Choose all that apply)
What is the maximum age limit for a borrower at the end of repayment for both salaried and non-salaried borrowers under the Cent Home Loan Scheme?
What is the maximum age limit for a borrower at the end of repayment for both salaried and non-salaried borrowers under the Cent Home Loan Scheme?
The Cent Home Loan Scheme allows builders to act as guarantors for the loan?
The Cent Home Loan Scheme allows builders to act as guarantors for the loan?
False
What is the minimum Loan-to-Value Ratio (LTV) for a home loan of up to Rs. 30.00 Lakh?
What is the minimum Loan-to-Value Ratio (LTV) for a home loan of up to Rs. 30.00 Lakh?
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What is the maximum period of moratorium allowed for under-construction properties under the Cent Home Loan Scheme?
What is the maximum period of moratorium allowed for under-construction properties under the Cent Home Loan Scheme?
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The Cent Home Loan Scheme allows loans for more than one house, provided the borrower meets certain income and repayment criteria.
The Cent Home Loan Scheme allows loans for more than one house, provided the borrower meets certain income and repayment criteria.
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Under the Cent Home Loan Scheme, what is the maximum permissible value of interiors/modular kitchen/fixtures/furnishing/solar photo voltaic lighting system that can be included in the loan?
Under the Cent Home Loan Scheme, what is the maximum permissible value of interiors/modular kitchen/fixtures/furnishing/solar photo voltaic lighting system that can be included in the loan?
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The Cent Home Loan Scheme permits loans where a builder/partner/director is acquiring a flat/house/unit in a project developed by them/their company?
The Cent Home Loan Scheme permits loans where a builder/partner/director is acquiring a flat/house/unit in a project developed by them/their company?
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What is the maximum period of moratorium allowed for under-construction properties when the borrower undertakes to construct a house on a plot within two years?
What is the maximum period of moratorium allowed for under-construction properties when the borrower undertakes to construct a house on a plot within two years?
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In cases of home loans for the purchase of constructed properties, what must the borrower provide to demonstrate that the property was constructed according to the approved plan?
In cases of home loans for the purchase of constructed properties, what must the borrower provide to demonstrate that the property was constructed according to the approved plan?
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The Cent Home Loan Scheme permits loans for the purchase of a property from close relatives?
The Cent Home Loan Scheme permits loans for the purchase of a property from close relatives?
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Borrowers seeking Home Loans under the Cent Home Loan Scheme are required to obtain a No-Objection Certificate (NOC) from other financial institutions if loans have previously been obtained from them?
Borrowers seeking Home Loans under the Cent Home Loan Scheme are required to obtain a No-Objection Certificate (NOC) from other financial institutions if loans have previously been obtained from them?
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The Cent Home Loan Scheme permits the Bank to credit loan funds directly into the borrower's personal account for home construction?
The Cent Home Loan Scheme permits the Bank to credit loan funds directly into the borrower's personal account for home construction?
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What are the maximum permissible LTV ratios for a home loan in cases where the cost of purchase exceeds Rs. 10.00 Lakh, according to the Cent Home Loan Scheme?
What are the maximum permissible LTV ratios for a home loan in cases where the cost of purchase exceeds Rs. 10.00 Lakh, according to the Cent Home Loan Scheme?
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What are the minimum permissible margins for a home loan under the Cent Home Loan Scheme when the loan amount is above Rs. 75 lakh?
What are the minimum permissible margins for a home loan under the Cent Home Loan Scheme when the loan amount is above Rs. 75 lakh?
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The Cent Home Loan Scheme requires borrowers to pay Pre-EMI interest during the moratorium period if the moratorium period extends beyond 18 months?
The Cent Home Loan Scheme requires borrowers to pay Pre-EMI interest during the moratorium period if the moratorium period extends beyond 18 months?
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What is the maximum permissible loan tenure for acquiring a new or existing house under the Cent Home Loan Scheme?
What is the maximum permissible loan tenure for acquiring a new or existing house under the Cent Home Loan Scheme?
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The Cent Home Loan Scheme allows borrowers to increase the repayment tenure by default when interest rates increase due to a change in the repo rate?
The Cent Home Loan Scheme allows borrowers to increase the repayment tenure by default when interest rates increase due to a change in the repo rate?
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What is the minimum CIC score required for sanctioning a home loan under the Cent Home Loan Scheme?
What is the minimum CIC score required for sanctioning a home loan under the Cent Home Loan Scheme?
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The Cent Home Loan Scheme mandates that two CIC scores must be obtained for home loans exceeding Rs. 50 Lakh?
The Cent Home Loan Scheme mandates that two CIC scores must be obtained for home loans exceeding Rs. 50 Lakh?
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The Cent Home Loan Scheme offers a concessional interest rate for women who are sole borrowers or first name borrowers in a property acquired under this scheme.
The Cent Home Loan Scheme offers a concessional interest rate for women who are sole borrowers or first name borrowers in a property acquired under this scheme.
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The Cent Home Loan Scheme allows loan disbursement directly to the borrower's account for new home construction projects?
The Cent Home Loan Scheme allows loan disbursement directly to the borrower's account for new home construction projects?
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The Cent Home Loan Scheme allows for a moratorium period up to 60 months for under-construction properties?
The Cent Home Loan Scheme allows for a moratorium period up to 60 months for under-construction properties?
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Study Notes
Master Circular No: 2024-25/01 - Cent Home Loan Scheme
- Effective from the date of circular
- Supersedes all previous circulars
- Amendments will be communicated through Instruction Circulars
Scheme in Brief
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Purpose: Enables individuals to
- Purchase land for house construction
- Buy/construct new houses/flats
- Purchase/extend existing houses/flats
- Repair/renovate existing houses/flats
- Takeover of existing home loans
- Furnish/improve existing or new construction
- Reimburse up to six months of personal investment in home purchase/renovation
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Multiple Home Loans: Allowed to an individual under certain conditions regarding income criteria(after deduction of existing loans), and CIBIL report verification
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No Home Loans are permitted where the Builder/Partner/Director is acquiring any unit in their project
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Takeover of Home Loans from other banks/financial institutions may be considered under specific circumstances, following the detailed regulations.
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The scheme for financing the 3rd and 4th House will be a separate scheme, if the borrower has more than 2 houses, singly or jointly.
Eligibility
- Individuals over 18 years of age with a stable income source, including agricultural workers
- Maximum age on repayment end will be 75 years
- If the property holder doesn't have independent income, a relative earning income can be a co-borrower/ guarantor
Quantum of Loan/Margin
- Loan amount up to Rs. 30 Lakhs - 90% of the cost
- Loan amount > Rs. 30 Lakhs and up to Rs. 75 Lakhs - 80% of the cost
- Loan amount > Rs. 75 Lakhs - 75% of the cost
- Repairs/Renovation/ Alterations of existing property -75% of cost
- For plot purchase and subsequent construction on that plot - 75% of the cost
- Margin amounts vary depending on the loan amount.
LTV Norms
- Lower of agreement value plus furniture/fixture costs (up to 20% of property value), and/or realizable sale value will determine Loan-to-Value ratio.
- Stamp duty, registration, and other documentation charges are excluded from the project cost for LTV calculation.
- For properties costing less than 10 lakhs, these charges can be included.
Furnishing/Interiors
- The cost of interiors (Modular Kitchen, Fixtures, Furnishing, Solar Photo Voltaic Lightening System, etc. as per invoices) , not exceeding 15% of the cost of the house/flat or Rs. 50 Lakhs, whichever is less.
- Excluded from reimbursement: Small expenditures like furnishing, wooden work , and investment in vacant plots.
Moratorium
- Maximum moratorium period of 48 months is permitted for under-construction properties
Security
- Equitable Mortgage /Registered Mortgage of the property is considered.
Scheme in Detail
- For Construction/ acquiring of new house/flat, construction cost = maximum 15% of the house costs or 50 Lakh.
Eligibility and Exclusion
- Resident Indians, NRIs jointly with resident Indian
- Maximum 3 co-borrowers, including spouse/children/parents/siblings
Income Documents
- Salaried: 6 months' salary slips for income up to Rs.7.00 Lakh (Letter from employer acknowledging no tax deduction under sections 80C/87A is required, if not Form 16 is available)
- Above Rs. 7.00 Lakh: 2 years ITRs and Form 16, six months' salary slips
- Non-Salaried/Self-Employed: 2 years ITRs , income evidence (Salary slips, certificates, or other proof)
- Agriculturists without ITR: Income certificate issued by Tahsildar/Revenue Officer (State-level gazetted rank)
Loan Amount and LTV Norms (Page 12)
- Loan amounts up to Rs.10.00 lakh: Requires ITRs and Form 26AS for 2 years.
- Loan amounts above Rs.10.00 lakh: Requires latest ITR,
DPD/ Days Past Due-CIC Score
- A limited number of instances (5 or 4) of DPDs (up to 60 days) in previous reports can be ignored to avoid over-financing. This is for Existing-to-Bank (Etb) or New-to-Bank (NTB) customers in certain specific situations.
- This is not applicable to older transactions beyond 5 years.
Moratorium Period
- Loans for new construction has a maximum moratorium of 48 months.
- Different period if loans are for repairs/ renovation/ alteration of an existing property.
Maximum Loan Tenure
- For constructions, the tenure is maximum of 30 years or the borrower reaching the age of 75 years, whichever is earlier.
Guarantor/Co-Borrower
- Co-borrower requirements and related documents are detailed.
- Some exclusions apply for particular situations (e.g., relatives, salaried individuals with specific circumstances)
Legal Audits
- Legal audit of the property with specified time limits and reporting is mandatory for loan amounts exceeding Rs 50/500 Lakhs
- For transactions below this amount, legal audit is not mandatory but encouraged
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