SOD Against Mortgage of Urban Immovable Property Policy PDF

SRI POTTI SRI RAMULU NELLORE DISTRICT COOPERATIVE CENTRAL BANK LTD., NELLORE SOD Against Mortgage of Urban Immovable Property Policy 1. Purpose: Overdraft facility against security of urban immovable property located in Nellore District Including major panch...

SRI POTTI SRI RAMULU NELLORE DISTRICT COOPERATIVE CENTRAL BANK LTD., NELLORE SOD Against Mortgage of Urban Immovable Property Policy 1. Purpose: Overdraft facility against security of urban immovable property located in Nellore District Including major panchayats i.e, Podalakur, Allur, Kota, Vinjamur, Udayagiri, Venkatachalam, rapur, Kovur, Vidavalur, Damaramadugu, Mudhivarthy, Manubolu, Vidyanagar, Bitragunta, Duttaluru and Muthukuru. The facility can be for any purposes viz. to repay the existing debts/take over from other institutions, expenses related to domestic, educational, health, repairs/developments to house/ flat, to improve the business etc. 2. Eligibility: a) All individuals who can enter into contract. b) The Branch Manager should satisfy himself about repaying capacity of the borrower to meet the monthly interest commitment before sanctioning/ recommending. c) The income of the Applicant including additional income, if any to be generated with the credit facility, should be sufficient enough to meet the monthly interest of the loan applied for and to maintain the family. 3. Amount of Limit: The individual maximum limit is Rs.25.00 lakhs, subject to meeting the monthly interest commitment, and value of the immovable property. The loan may be limited to 100% of the SRA value of the property. In case of structure the age of the building should not be more than 15 years. 4. Rate of Interest: The rate of interest shall be as decided by the ALCO from time to time. Presently the Rate of Interest is 12% p.a. 5. Security: a) These OD limits will be sanctioned against simple mortgage of immovable property located in Municipalities and Corporation areas of Nellore District. b) If the property offered Is not having approved layout (plots situated in residential area surrounded by houses) by the competent authority, the BM should physically verify and give his/her recommendation/ certiflcate with regard to possession/ occupancy, marketablity. c) Initially the SOD limits are sanctioned for a perlod of ONE YEAR only. On satisfactory operations on the sanctioned limit, limit will be renewed. e) The BM can call back the faclity at any point of time if the operations are not satisfactory and Branch Manager will be the authority to take leagal action against the defaulter. 6. Modifications and operational guidelines: Taking into consideration the market conditions, competitive environment, borrower's credit worthy, etc., the Chief Executive Officer of the Bank can do suitable relaxations to the above policy and issue operational guidelines from time to time. 130 MASTER CIRCULAR ON SECURED OVER DRAFT AGAINST URBAN IMMOVABLE MORTGAGE OF PROPERTY POLICY Nature of facility Overdraft facility against security of urban immovable property located in Nellore District Including major panchayats i.e, Podalakur, Allur, Kota, Vinjamur, Udayagiri, Venkatachalam, rapur, Kovur, Vidavalur, Damaramadugu, Mudhivarthy, Manubolu, Vidyanagar, Bitragunta, Duttaluru and Muthukuru. Purpose/Activity Any lawful activity excluding speculative activity. e.g., to repay the existing debts/take over from other institutions, expenses related to domestic education, health, purchase/ repairs/ developments to house/ flat, to improve expansion of business etc. Eligibility a) All individuals who can enter into contract. b) The Prospective Applicant should be a customer of our Bank and should comply with KYC norms. c) The prospective Applicant should have the repayment capacity to meet the monthly interest on the proposed SOD limit which is to be substantiated with documentary evidence. d) The CIBIL Score at 650 of the Applicant who is having the repayment capacity, should be submitted. Quantum of Minimum Rs.5.00 Lakhs and Maximum Rs.25.00 lakhs. Loan The limit to be sanctioned should not exceed 80% of the SRA value of the property. Interest rate 12% p.a. subject to revision from time to time. Penal interest Penal interest at 2% p.a. will be charged on entire outstanding in case of delayed payments till the defaulted amount are repaid. Period of Loan Sanctioned for a period of one year. The loan should be renewed every & Renewal year , irrespective of the date of sanction on satisfactory operations/ performance. Sanctioning Physical Verification/ Field Inspection of the property mortgaged Authority should be done by the concerned Nodal Officer of the Branch Security Registered Mortgage of immovable property(Approved plots/sites/Residential house/Residential flat, commercial or industrial property, non-agricultural lands situated in residential area) located in in Municipalities and Corporation areas of Nellore District. In case the plot/ property offered is not having approved layout and the same is situated in residential area surrounded by houses, the Branch Manager should physically verify the property and need to give recommendation certificate with regard to possession Occupancy, marketability etc. Share Capital 2% Subject to maximum of Rs.10,000/- 131 Processing Fee Non-refundable processing fee @ 0.5% of the proposed loan, subject to a maximum of Rs.2,000/- plus GST should be collected after sanction of the loan. Legal opinion & Legal opinion should be obtained from the Panel Advocate on the title of Legal Fee the property offered as security. The legal fee paid to the advocate is Rs.750/- verification Physical verification of KYC documents of the Applicant i.e., address G- Tree/declarations regarding income/ profession / employment/ business and property offered as security be done by the Branch Manager and Supervisor. Precautions The Branch Manager and Supervisor should thoroughly verify the documentation and ensure that the signatures of Applicant are obtained wherever necessary. Due Diligence a) The Verifying Officer himself/ herself should ascertain the income of the applicant to ensure the repayment before recommending the proposal to the Sanctioning Authority. b) Assess the financial discipline, capabilities etc. of the through personal interviews, scrutinizing credit history in the CIBIL report. c) The information gathered about the profession, credit worthiness, repaying capacity etc., of the Applicant from friends /relatives/ workplace in a systematic manner should be recorded in the file for future reference along with the contact details. Pre-sanction 1. Loan application duly filled in with all required information (no documentation column should be left BLANK) together with prescribed enclosures (Check List) need to be obtained. 2. One latest photo on loan application of applicant 3. Copy of PAN card 4. Valid document as a Proof of Identity/ Address. 5. Proof of Income : a) salary certificate in case of employees, b) IT returns for 3 consecutive years in case of persons other than salaried persons c) Income declaration in case of others who cannot produce income proof to the satisfaction of Branch Manager, with documentary proof wherever possible. 6. Xerox copy of the title deed (originals to be produced as and when required) 7). Location sketch of the schedule property as per the Title Deed. 8).Location sketch indicating access to the Scheduled property with land marks etc. by the Verification officer. 9). Link document for a minimum of 13 years -Xerox. 10).G-Tree (reflecting the relationship, age and the status of the person- alive / deceased) duly signed by the Applicant and Verification| Officer with date 11). Property Tax Receipts upto date. 132  12).Latest E.C. for a minimum of 13 years - Original. 13).Latest extract from basic SRA for the value register of | value of site/building/flat- in original. 14).Valid Proof for Approved Plots/ Site/ House/Building with in the Municipal and Urban area of Nellore District. 15). Legal Opinion on the title of the property. 16).Field Verification report by the Nodal Officer along with the Branch Manager and Supervisor. 17). Any other document felt necessary by the Supervisor and Branch Manager. Post-Sanction 1. Sanction Letter Documentation 2. Acceptance letter, accepting the terms and conditions. 3.Application for Nominal Share Membership from applicant & Co- executants 4. Loan agreement on Rs.100/- Non-Judicial Stamp Paper. 5. Demand Promissory Note duly stamped. 6. Letter of Continuing Guarantee 7. Post Dated Cheques (5). 8. Undertaking to honour post-dated Cheques. 9. Acknowledgement of Debt (to be obtained on half- yearly basis). 10 Title Deed of the Applicant in Original and all the documents as mentioned in Legal Opinion-Document number should be the same in Mortgage Deed and also in EC. 11. Mortgage Deed duly registered with SRA registering the Bank's interest. 12. EC reflecting the Bank's interest for the| sanctioned amount after mortgage 13. Any other document felt necessary by the BM/Sanctioning Authority. Monitoring After the loan is disbursed, the account should be closely monitored. Sd/- CHIEF EXECUTIVE OFFICER 133