Master Circular: Cent Home Loan Scheme 08/07/2024 PDF

Description: C:\\Users\\iisadmin\\Desktop\\CENTRAL BANK OF INDIA.jpg ---------------------------------------------------------------- -- ---------------------------------------------------------------- **केन्‍द्रीय कार्यालय, चन्‍दरमुखी नरीमन पॉइंट, मुंबई-400 021** **Central Office, Chander...

Description: C:\\Users\\iisadmin\\Desktop\\CENTRAL BANK OF INDIA.jpg ---------------------------------------------------------------- -- ---------------------------------------------------------------- **केन्‍द्रीय कार्यालय, चन्‍दरमुखी नरीमन पॉइंट, मुंबई-400 021** **Central Office, Chander Mukhi, Nariman Point,Mumbai-400021** ---------------------------------------------------------------- -- ---------------------------------------------------------------- **RETAIL ASSETS DEPARTMENT** **MASTER CIRCULAR NO: 2024-25/01** **DATE : 08/07/2024** ----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------- ----------------------------- **MASTER CIRCULAR** ***CENT HOME LOAN SCHEME*** Product Codes **Cent Home Loan** **6240-1301** **Cent Grih Lakshmi Home Loan** **6240-1270** This Master Circular will be effective from the date of circular. Amendments in the scheme, if any shall be communicated through Instruction Circular. This Master Circular supersedes all the previous circulars on the subject. **[SCHEME IN BRIEF: CENT HOME LOAN SCHEME]** - **[Purpose: ]** 1. Loans under the Bank's Home Loan Scheme may be granted to individuals to enable them to: a. Purchase a plot of land for the purpose of construction of house thereon b. purchase /construct a new house/flat c. purchase an existing (old) house / flat or extend an existing house d. repair or renovate an existing house /flat e. takeover of Home Loans (complete / under construction) from other Banks/HFCs/FIs f. Furnishing/interiors as part of the project cost. g. Re-imbursement of investment made from own resources during the preceding Six months for purchase of house/flat/construction of house/repair and extension of house. 2. Loans for more than one house may be granted to an individual provided: a. Applicant(s) should fulfill the income criteria as also EMI/NMI norm after netting off the repayment obligations of the existing loans and subject to satisfactory conduct of existing loan(s) if any, as evidenced from statement of loan account and CIBIL report, provided sanctioning authority is satisfied about the genuineness of source of income and continuity of repayment capacity of the borrower. b. If an individual owns two or more houses, singly or jointly then the exposure for the third house onwards / purchase of plot will be treated in the separate scheme "Scheme for financing 3^rd^ & 4^th^ House". 3. Home loans will not be permitted where Builder/ Partner/Director is acquiring flat/house /unit/plot in the project developed by them /their Company. 4. Takeover of Home Loans availed by an individual borrower from other Banks/HFCs/Financial Institutions may be considered under certain circumstances after strictly following the Takeover Norms. 5. Home Loan borrowers of our Bank will also be eligible for availing Vehicle Loan at concessional ROI under **Cent Combo Vehicle loan scheme** subject to compliance of terms and conditions of Cent Combo Vehicle Loan scheme. 6. Please refer Annexure -I for **Cent Grih Lakshmi -Special Home Loan Scheme** for Women Borrowers - **[Eligibility]:** 1. Individual(s) over 18 years of age with steady source of income, including persons engaged in agriculture & allied activities. 2. **Maximum permissible age at end of repayment for both salaried and non-salaried class of borrower is 75 years**. 3. In case the property holder is not having independent source of income, the income earning near relative may join as co-borrower/guarantor for the loan and his or her income can be taken for arriving at loan eligibility. - **[Quantum of Loan/Margin :]** **Loan Amount** **Home loan as percentage of Cost of Home/flat** **Minimum Margin** ------------------------------------------------------------------------------------------- -------------------------------------------------- -------------------- **Up to Rs.30.00 Lakh** **90%** **10%** **Above Rs. 30.00 Lakh & up to Rs. 75 Lakh** **80%** **20%** **Above Rs. 75.00 Lakh** **75%** **25%** **For repairs / renovation / alteration of existing house /flat (Maximum Rs 25.00 lakh)** **75%** **25%** **Purchase of Plot and subsequent Construction of house thereon** **For purchase of plot** **75%** **25%** **For Construction on plot** **As per quantum of loan as above** - **LTV NORMS** - a. Agreement value along with value of Furniture & Fixture up to 20% of cost of property along with other inclusions as Township Corpus Fund, One time maintenance fund/deposit/corpus, Development Charges, Electrical fittings, one time Generator Charges, Cost of Solar Photo Voltaic Lightening System, Insurance Premium of Mortgaged Property, Club House Membership charges, Electricity/Water/Sewerage Board one time charges/deposits, GST & Service Tax may be considered. **OR** b. The Realizable Sale Value. - - - - **Furnishing/interiors** The cost of interiors/ Modular Kitchen/Fixtures/Furnishing/Solar Photo Voltaic Lightening System etc. as per proforma Invoice will be given at 15% of cost of home/flat or Rs.50.00 Lakh whichever is lower, provided LTV norms are not breached. - **Moratorium** - **Security** +-----------------------+-----------------------+-----------------------+ | Scheme in detail | | | +=======================+=======================+=======================+ | | **Particulars** | **Details** | +-----------------------+-----------------------+-----------------------+ | 1. | **Purpose** | 1. For construction/ | | | | acquiring of new | | | | house /flat or | | | | extension of | | | | existing | | | | house/flat and, | | | | for buying/ | | | | constructing a | | | | second house in | | | | the same or other | | | | town/ village for | | | | the purpose of | | | | self-occupation. | | | | | | | | 2. **For Furnishing | | | | & interior as | | | | part of the | | | | project | | | | cost**-Maximum 15 | | | | % of the cost of | | | | the house/flat or | | | | Rs. 50 lakh may | | | | be included in | | | | the cost of | | | | house. However, | | | | the maximum loan | | | | amount will be | | | | restricted to the | | | | stipulated LTV | | | | Ratio. The cost | | | | of | | | | interiors/Modular | | | | Kitchen/Fixtures/ | | | | Furnishing, | | | | Solar Photo | | | | Voltaic Lighting | | | | System etc., | | | | which add-up to | | | | the realizable | | | | value of the | | | | property, will be | | | | added to the | | | | agreement | | | | value/project | | | | cost, for | | | | arriving at | | | | project cost and | | | | LTV. | | | | | | | | 3. For | | | | repairs/renovatio | | | | n/alteration/in | | | | the existing | | | | house/flat. | | | | | | | | 4. For purchase of | | | | old house/ flat | | | | which is not | | | | older than 40 | | | | years and has | | | | remaining life of | | | | 10 years more | | | | than the loan | | | | tenure applied | | | | for. | | | | | | | | 5. Finance may be | | | | granted for | | | | purchase of plot | | | | obtaining | | | | declaration from | | | | the borrower that | | | | he/she/they | | | | undertake to | | | | construct the | | | | house on the plot | | | | within the period | | | | of two years. | | | | | | | | 6. Takeover of Home | | | | Loans availed by | | | | an individual | | | | borrower from | | | | other | | | | Banks/HFCs/Financ | | | | ial | | | | Institutions may | | | | be considered | | | | under certain | | | | circumstances | | | | after strictly | | | | following the | | | | Takeover Norms. | | | | | | | | | | | | | | | | 7. Re-imbursement of | | | | investment made | | | | from own | | | | resources during | | | | the preceding | | | | **Six (6)** | | | | months for | | | | purchase of | | | | house/flat/constr | | | | uction | | | | of house/repair | | | | and extension of | | | | house may be | | | | considered while | | | | considering the | | | | proposal subject | | | | to observance of | | | | following Terms | | | | and Conditions: | | | | | | | | | | | | | | | | a. Reimbursement | | | | will be | | | | restricted to the | | | | investments made | | | | by the borrower | | | | from own | | | | resources or | | | | through | | | | borrowings from | | | | friends, | | | | relatives and | | | | employers, | | | | | | | | b. Reimbursement | | | | will not be | | | | permitted if the | | | | investment in the | | | | property is made | | | | through | | | | borrowings from | | | | Banks/HFCs/NBFCs/ | | | | Other | | | | FIs, etc. Under | | | | such | | | | circumstances, | | | | the Loan from the | | | | existing lender | | | | can be taken over | | | | subject to | | | | compliance of | | | | extant norms | | | | applicable for | | | | take-over of Home | | | | Loans, | | | | | | | | c. Small expenditure | | | | like furnishing, | | | | wood work will | | | | not be considered | | | | for | | | | reimbursement. | | | | Reimbursement | | | | will also not be | | | | permitted for | | | | investment made | | | | in acquiring | | | | vacant plots, | | | | | | | | d. The property | | | | proposed to be | | | | financed should | | | | be free from all | | | | encumbrances. | | | | | | | | e. Obtaining a | | | | certificate from | | | | Architect | | | | confirming the | | | | investment and | | | | also that the | | | | construction has | | | | been done as per | | | | the approved | | | | plan. | | | | | | | | f. Quantum of | | | | reimbursement | | | | will be based on | | | | | | | | | | | | | | | | i. the present | | | | Realizable value | | | | of the property | | | | as per the | | | | valuer's | | | | certificate less | | | | margin (arrived | | | | based on maximum | | | | permissible LTV), | | | | | | | | **OR** | | | | | | | | ii. the investment | | | | made by the | | | | borrower less | | | | margin, whichever | | | | is lower. | | | | Expenditure | | | | receipts along | | | | with a | | | | certificate from | | | | Architect should | | | | be obtained and | | | | kept on record | | | | | | | | | | | | | | | | g. LTV ratio | | | | applicable under | | | | Home Loan will be | | | | followed. | | | | | | | | 8. Loans for | | | | more than one | | | | house may be | | | | granted to an | | | | individual | | | | provided: | | | | | | | | | | | | | | | | a. Applicant(s) | | | | should fulfill | | | | the income | | | | criteria as also | | | | EMI/NMI norm | | | | after netting off | | | | the repayment | | | | obligations of | | | | the existing | | | | loans and subject | | | | to satisfactory | | | | conduct of | | | | existing loan(s) | | | | if any, as | | | | evidenced from | | | | statement of loan | | | | account and CIBIL | | | | report, provided | | | | sanctioning | | | | authority is | | | | satisfied about | | | | the genuineness | | | | of source of | | | | income and | | | | continuity of | | | | repayment | | | | capacity of the | | | | borrower. | | | | | | | | b. If an individual | | | | owns two or more | | | | houses, singly or | | | | jointly then the | | | | exposure for the | | | | third house | | | | onwards / | | | | purchase of plot | | | | will be treated | | | | in the separate | | | | scheme "Scheme | | | | for financing | | | | 3^rd^ & 4^th^ | | | | House". | +-----------------------+-----------------------+-----------------------+ | **2.** | **Eligibility and | A. **[Eligibility]{. | | | exclusion** | underline}** | | | | | | | | | | | | | | | | a. Resident Indian, | | | | Non-resident | | | | Indians (NRIs) | | | | jointly with | | | | Resident Indian, | | | | who have attained | | | | 18 years of age | | | | (completed) as on | | | | date of | | | | application & | | | | Housing | | | | Cooperative | | | | Societies. | | | | | | | | b. **Individuals may | | | | apply singly or | | | | jointly with | | | | other eligible | | | | individuals. | | | | However | | | | restricted to | | | | maximum 3 | | | | including | | | | spouse/children/ | | | | parents | | | | /siblings. | | | | However, | | | | RH(Region)/AGM | | | | (Branch) can | | | | relax maximum | | | | number of | | | | co-borrowers.** | | | | | | | | c. Friends & distant | | | | relatives like | | | | uncles, aunts, | | | | nephews, nieces | | | | etc. are not | | | | eligible to join | | | | as co-borrowers. | | | | **However Zonal | | | | Heads are | | | | authorized to | | | | allow relaxation | | | | in inter-se | | | | relationship | | | | between | | | | co-borrowers.** | | | | | | | | d. All the proposed | | | | co-owners of the | | | | property for | | | | which loan is | | | | being applied, | | | | have to | | | | necessarily join | | | | as applicants to | | | | the loan. | | | | | | | | e. **The following | | | | family members | | | | are permitted to | | | | join as | | | | applicants/co-app | | | | licants | | | | --** | | | | | | | | i. **Spouse** | | | | | | | | ii. **Father** | | | | | | | | iii. **Mother** | | | | | | | | iv. **Son** | | | | | | | | v. **Daughter in | | | | law** | | | | | | | | vi. **Unmarried-d | | | | aughter** | | | | | | | | vii. **Father in | | | | law** | | | | | | | | viii. **Mother in | | | | law** | | | | | | | | ix. **Brother** | | | | | | | | x. **Unmarried | | | | sister** | | | | | | | | xi. **Brother in | | | | law** | | | | | | | | xii. **Sister in | | | | law.** | | | | | | | | f. The income of | | | | these | | | | co-applicants can | | | | be considered for | | | | the purpose of | | | | calculation of | | | | eligible loan | | | | amount. | | | | | | | | g. Housing loan to | | | | purchase property | | | | from spouse, | | | | parents, | | | | grandparents, | | | | siblings, and | | | | children is not | | | | to be allowed as | | | | no real | | | | consideration / | | | | possession of | | | | property may pass | | | | from seller to | | | | buyer. | | | | | | | | h. ***If the | | | | borrower is more | | | | than 60 years | | | | old, immediate | | | | legal heir should | | | | be made | | | | Co-Borrower and | | | | duly documented | | | | consent of all | | | | other legal heirs | | | | should be | | | | obtained.*** | | | | | | | | i. HUF, partnership | | | | firms, etc. are | | | | not eligible | | | | under this | | | | scheme. | +-----------------------+-----------------------+-----------------------+ | | | B. ***[Exclusion:]{. | | | | underline}*** | | | | | | | | *No loan proposal to | | | | be sanctioned in all | | | | such cases,* | | | | | | | | I. ***where | | | | Builder/Partner/D | | | | irector | | | | is acquiring | | | | flat/house in the | | | | project developed | | | | by them/their | | | | Company, and | | | | also*** | | | | | | | | II. ***Where the | | | | applicants are | | | | acquiring | | | | residential | | | | property from | | | | their own close | | | | relatives.*** | | | | | | | | (With regard to | | | | definition of 'close | | | | relative' we draw | | | | your attention | | | | towards manual of | | | | Instruction on Credit | | | | (Part-I&II) | | | | circulated by Credit | | | | Department vide | | | | CO:CO:CORP:POL:15-16: | | | | dated 31.12.2015).In | | | | respect of "Granting | | | | Loans and Advances to | | | | relatives of | | | | Directors" (clause | | | | 3.5 at page 25 in | | | | Part-I) the scope of | | | | the term "relative" | | | | is defined (at page | | | | 27) as under: | | | | | | | | - | | | | | | | | | | | | | | | | - - - - - - | | | | - - - - - | | | | - | | | | | | | | i. *No Housing loans | | | | is to be allowed | | | | to the Promoter / | | | | Directors of our | | | | Bank's Corporate | | | | Clients and | | | | Proprietor / | | | | Partners of | | | | borrowing firms | | | | which are | | | | classified as | | | | NPA.* | +-----------------------+-----------------------+-----------------------+ | **3.** | **Documents in | **[In case of | | | support of Income** | Salaried | | | | Customer] | | | | ** | | | | | | | | 1. **Income | | | | Documents for | | | | Annual Income up | | | | to Rs. 7.00 | | | | Lakh** | | | | | | | | **Particulars** | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | **Documents required* | | | | * | | | | ------------------- | | | | --------------------- | | | | --------------------- | | | | --------------------- | | | | --------------------- | | | | --------------------- | | | | --------------------- | | | | --------------------- | | | | -------------------- | | | | --------------------- | | | | ---- | | | | For Income Up to Rs | | | |. 2.50 Lakh | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | 6 Months' Salary Slip | | | | Employee having ann | | | | ual salary above Rs. | | | | 2.50 Lakh but less th | | | | an Rs. 7.00 Lakh thou | | | | gh have tax liability | | | | but owing to tax ded | | | | uction under Section | | | | 80C/87A does not have | | | | any tax liability | | | | \*6 Months' Salary Sl | | | | ip | | | | \*A letter from the | | | | employer to be obtai | | | | ned that Form 16 is n | | | | ot issued to the empl | | | | oyee. In case Form 16 | | | | is available with th | | | | e borrower then 26 AS | | | | to be obtained along | | | | with Form 16. | | | | | | | | - In case of | | | | aberration in the | | | | credit of salary | | | | in account | | | | vis-à-vis the | | | | salary sheet. | | | | CPAC has to | | | | understand the | | | | reason for | | | | aberration and | | | | has to be confirm | | | | from the employer | | | | for aberration | | | | and upon | | | | satisfaction to | | | | proceed for | | | | sanction of loan | | | | as per the | | | | policy. | | | | | | | | - In all cases | | | | Branches/CPAC has | | | | to be mandatorily | | | | cross check of | | | | salary each month | | | | in the SB account | | | | of the customer | | | | vis-à-vis Salary | | | | Sheet of last six | | | | month. | | | | | | | | 2. **[Income | | | | Documents for | | | | Annual Income | | | | above Rs. | | | | 7.00 | | | | Lakh]{.underl | | | | ine}** | | | | | | | | - Two year ITR's | | | | and Form No 16 | | | | | | | | - 6 months' salary | | | | slip. | | | | | | | | - In case of | | | | job/service less | | | | than 2 years- AGM | | | | Branch/RH will | | | | have discretion | | | | in permitting | | | | relaxation in | | | | Non-availability | | | | of Form 16 or IT | | | | returns for last | | | | 2 years. | | | | | | | | - In case of NRIs- | | | | Last 12 month's | | | | salary slip along | | | | with statement of | | | | account and other | | | | documents. | | | | (Please note that | | | | confirmation of | | | | salary of the NRI | | | | borrower has to | | | | be taken from | | | | official mail id | | | | of the | | | | company/employer | | | | and not any other | | | | mail ids. Branch | | | | has also to check | | | | company/employer | | | | profile and all | | | | details from the | | | | website of the | | | | company to | | | | ascertain the | | | | genuineness of | | | | the | | | | company/employer) | | | |. | | | | | | | | 3. **[Norms | | | | regarding | | | | obtaining | | | | ITRs only for | | | | North Eastern | | | | States namely | | | | Arunachal | | | | Pradesh, | | | | Manipur, | | | | Mizoram, | | | | Nagaland, | | | | Meghalaya and | | | | Tripura: | | | | ] | | | | ** | | | | | | | | 4. **Other | | | | conditions for | | | | Salaried | | | | Customers:** | | | | | | | | | | | | | | | | a. The salary income | | | | appearing in the | | | | latest salary | | | | slip/salary | | | | certificate. PLUS | | | | | | | | b. other incomes | | | | which are either | | | | appearing in the | | | | Salary Slip | | | | or/and Form-16 | | | | or/and IT Return | | | | such as variable | | | | pay, | | | | performance/produ | | | | ction | | | | linked | | | | incentives, | | | | bonus, overtime | | | | allowance, | | | | reimbursement of | | | | expenditure, etc. | | | | may be included | | | | in the salary | | | | income on basis | | | | of the average of | | | | the last two | | | | years after | | | | excluding taxes | | | | and statutory | | | | deductions. | | | | | | | | c. - break in | | | | service | | | | beyond the | | | | period of 3 | | | | months | | | | | | | | - NOC from the | | | | employers | | | | (Banks and | | | | other | | | | organizations | | | | ) | | | | will not be | | | | insisted upon | | | | when their | | | | employees | | | | seek Home | | | | Loans from | | | | our Bank. | | | | | | | | 5. **In case | | | | of | | | | self-empl | | | | oyed | | | | persons, | | | | professio | | | | nals | | | | and | | | | others:** | | | | | | | | | | | | | | | | a. b. | | | | | | | | | | | | | | | | a. b. c. d. e. 6 | | | |. #### Income of spo | | | | use/children/parents/ | | | | siblings: | | | | | | | | | | | | | | | | a. b. 7. #### Expe | | | | cted Rental from the | | | | proposed house proper | | | | ty: Computation of ex | | | | pected rent accruals | | | | | | | | #### | | | | | | | | - While computing | | | | maximum eligible | | | | loan amount, | | | | expected rent | | | | accruals **(Not | | | | more than the | | | | prevailing rent | | | | of a similar | | | | property in the | | | | same area)** from | | | | the proposed | | | | house/flat being | | | | let out (net of | | | | taxes, cess etc.) | | | | may be reckoned, | | | | **subject to | | | | maximum amount | | | | equivalent to the | | | | applicant's Net | | | | Monthly | | | | Income(NMI)/Net | | | | Annual Income | | | | (NAI).** | | | | | | | | - It also has to be | | | | ensured that the | | | | f**uture Rental | | | | income only of a | | | | existing fully | | | | constructed with | | | | OC wherever | | | | applicable and | | | | ready to move in | | | | property of a | | | | borrower who is | | | | already in | | | | possession of a | | | | house can be | | | | considered.** | +-----------------------+-----------------------+-----------------------+ | **4.** | **For Housing Loans | Non-Resident Indians | | | to NRI** | holding Indian | | | | Passport can be | | | | sanctioned Home Loan | | | | **[Jointly with | | | | Resident | | | | Indian]** | | | | on the above terms | | | | and conditions. | | | | (Please refer our | | | | letter no. CO:R& | | | | CL:2023-24:32 dated | | | | 20/04/2023 issued by | | | | Retail Assets on | | | | precautions to be | | | | taken while | | | | sanctioning HLs to | | | | NRIs and SOP for | | | | Mortgage Properties | | | | of NRI applicant(s) | | | | on the basis of Power | | | | of Attorney (POA) | | | | issued by Credit | | | | Monitoring & Policy | | | | vide their IC No. | | | | 2993 dated | | | | 10.02.2022). Please | | | | refer Annexure-II - | | | | guidelines for NRIs. | | | | PIO Cardholder | | | | (Person of Indian | | | | Origin) and OCI | | | | (Overseas Citizen of | | | | India) who is | | | | possessing foreign | | | | passport can also be | | | | sanctioned Home Loan. | | | | (Please refer our | | | | letter no. CO:R & | | | | CL:2023-24:32 dated | | | | 20/04/2023 issued by | | | | Retail Assets on | | | | precautions to be | | | | taken while | | | | sanctioning HLs to | | | | NRIs and SOP for | | | | Mortgage Properties | | | | of NRI Borrower on | | | | the basis of Power of | | | | Attorney (POA) issued | | | | by Credit Monitoring | | | | & Policy vide their | | | | IC No. 2993 dated | | | | 10.02.2022). While | | | | sanctioning Loans to | | | | NRI, following | | | | conditions should be | | | | taken into account: | | | | | | | | - The loan amount | | | | shall not be | | | | credited to | | | | Non-Resident | | | | External | | | | (NRE)/Foreign | | | | Currency | | | | Non-Resident | | | | (FCNR) account of | | | | the borrower. | | | | | | | | - The loan shall be | | | | fully secured by | | | | equitable | | | | mortgage of the | | | | property proposed | | | | to be acquired | | | | and if necessary, | | | | also by lien on | | | | the borrower's | | | | other assets in | | | | India. | | | | | | | | The instalments of | | | | loan, interest and | | | | other charges, if | | | | any, shall be paid by | | | | the borrower by | | | | remittance from | | | | outside India through | | | | normal banking | | | | channel or out of | | | | funds in his | | | | Non-Resident External | | | | (NRE)/Foreign | | | | Currency Non-Resident | | | | (FCNR)/Non-Resident | | | | Ordinary (NRO) or out | | | | of rental income | | | | derived from renting | | | | out the property | | | | acquired by | | | | utilization of the | | | | loan. | +-----------------------+-----------------------+-----------------------+ | **5.** | **General Provisions | **(A) Home Loan for | | | to be complied under | Building Construction | | | Home Loan Scheme** | :** | | | | | | | | a. In cases where | | | | the applicant | | | | owns a plot/land | | | | and approaches | | | | for a credit | | | | facility to | | | | construct a | | | | house, a copy of | | | | the sanctioned | | | | plan by competent | | | | authority in the | | | | name of a person | | | | applying for such | | | | credit facility | | | | must be obtained | | | | before | | | | sanctioning the | | | | housing loan. | | | | | | | | b. It is should be | | | | noted that the | | | | loan for purchase | | | | of plot should | | | | not be more than | | | | 75% of loan | | | | amount**.** | | | | | | | | c. **Adding cost of | | | | furnishings/inter | | | | ior | | | | to the cost of | | | | house/flat:** | | | | Maximum 15 % of | | | | the cost of the | | | | house/flat or Rs. | | | | 50 lakh, | | | | whichever is | | | | lower. However, | | | | the maximum loan | | | | amount will be | | | | restricted to the | | | | stipulated LTV | | | | Ratio. The cost | | | | of | | | | interiors/Modular | | | | Kitchen/ | | | | Fixtures/Furnishi | | | | ng | | | | etc., which | | | | add-up to the | | | | realizable value | | | | of the property, | | | | will be added to | | | | the agreement | | | | value/project | | | | cost, if already | | | | not added, for | | | | arriving at LTV. | | | | | | | | d. **Inclusion of | | | | Cost of Solar | | | | Photo Voltaic | | | | Lightening | | | | System**: The | | | | cost of rooftop | | | | Solar Photo | | | | Voltaic System | | | | may be included | | | | in the cost/ | | | | agreement to sale | | | | value for | | | | arriving at the | | | | Home Loan | | | | eligibility for | | | | purchase/ | | | | construction/repa | | | | ir | | | | and renovation of | | | | residential units | | | | in respect of all | | | | applicants | | | | willing to | | | | install such | | | | systems. | | | | | | | | **Reimbursement of | | | | Expenses made by | | | | borrower:** | | | | | | | | In exceptional cases | | | | where the borrower | | | | has financed out of | | | | own funds, | | | | re-imbursement of | | | | investment made from | | | | own resources during | | | | the preceding 6(Six) | | | | months for purchase | | | | of | | | | house/flat/constructi | | | | on | | | | of house/repair and | | | | extension of house | | | | may be considered | | | | while considering the | | | | proposal subject to | | | | observance of | | | | following Terms and | | | | Conditions: | | | | | | | | - Reimbursement | | | | will be | | | | restricted to the | | | | investments made | | | | by the borrower | | | | from own | | | | resources or | | | | through | | | | borrowings from | | | | friends, | | | | relatives and | | | | employers, | | | | | | | | - Reimbursement | | | | will not be | | | | permitted if the | | | | investment in the | | | | property is made | | | | through | | | | borrowings from | | | | Banks/HFCs/NBFCs/ | | | | Other | | | | FIs, etc. Under | | | | such | | | | circumstances, | | | | the Loan from the | | | | existing lender | | | | can be taken over | | | | subject to | | | | compliance of | | | | extant norms | | | | applicable for | | | | take-over of Home | | | | Loans, | | | | | | | | - Small expenditure | | | | like furnishing, | | | | wood work will | | | | not be considered | | | | for | | | | reimbursement. | | | | Reimbursement | | | | will also not be | | | | permitted for | | | | investment made | | | | in acquiring | | | | vacant plots, | | | | | | | | - The property | | | | proposed to be | | | | financed should | | | | be free from all | | | | encumbrances. | | | | | | | | - Obtaining a | | | | certificate from | | | | Architect | | | | confirming the | | | | investment and | | | | also that the | | | | construction has | | | | been done as per | | | | the approved | | | | plan. | | | | | | | | - Quantum of | | | | reimbursement | | | | will be based on | | | | | | | | i. the present | | | | Realizable value | | | | of the property | | | | as per the | | | | valuer's | | | | certificate less | | | | margin (arrived | | | | based on maximum | | | | permissible LTV), | | | | **OR** | | | | | | | | ii. the investment | | | | made by the | | | | borrower less | | | | margin, whichever | | | | is lower. | | | | Expenditure | | | | receipts along | | | | with a | | | | certificate from | | | | Architect should | | | | be obtained and | | | | kept on record | | | | | | | | - LTV ratio | | | | applicable under | | | | Home Loan will be | | | | followed. | +-----------------------+-----------------------+-----------------------+ | | | i. An | | | | affidavit-cum-und | | | | ertaking | | | | must be obtained | | | | from the person | | | | applying for such | | | | credit facility | | | | that he shall not | | | | violate the | | | | sanctioned plan, | | | | construction | | | | shall be strictly | | | | as per the | | | | sanctioned plan | | | | and it shall be | | | | the sole | | | | responsibility of | | | | the executant to | | | | obtain completion | | | | certificate | | | | within 3 months | | | | of completion of | | | | construction, | | | | failing which the | | | | bank shall have | | | | the power and the | | | | authority to | | | | recall the entire | | | | loan with | | | | interest, costs | | | | and other usual | | | | bank charges. | +-----------------------+-----------------------+-----------------------+ | | | **(ii)** An | | | | architect/engineer | | | | appointed by the Bank | | | | must also certify at | | | | various stages of | | | | construction of | | | | building that the | | | | construction of the | | | | building is strictly | | | | as per sanctioned | | | | plan and shall also | | | | certify at a | | | | particular point of | | | | time that the | | | | completion | | | | certificate of the | | | | building issued by | | | | the competent | | | | authority has been | | | | obtained. | +-----------------------+-----------------------+-----------------------+ | | | **(B) Home Loan for | | | | purchase of | | | | constructed property/ | | | | built up property :** | | | | | | | | ii. In cases where | | | | the applicant | | | | approaches the | | | | bank for a credit | | | | facility to | | | | purchase the | | | | built up | | | | house/flat, it | | | | should be | | | | mandatory for him | | | | to declare by way | | | | of an | | | | affidavit-cum-und | | | | ertaking | | | | that the built up | | | | property has been | | | | constructed as | | | | per sanctioned | | | | plan and/or | | | | building bye-laws | | | | and as far as | | | | possible, has a | | | | completion | | | | certificate also. | | | | | | | | iii. **Adding cost of | | | | furnishings/inter | | | | ior | | | | to the cost of | | | | house/flat:** | | | | **Maximum** 15 % | | | | of the cost of | | | | the house/flat or | | | | Rs. 50 lakh, | | | | whichever is | | | | lower. However, | | | | the maximum loan | | | | amount will be | | | | restricted to the | | | | stipulated LTV | | | | Ratio. The cost | | | | of | | | | interiors/Modular | | | | Kitchen/Fixtures/ | | | | Furnishing | | | | etc., which | | | | add-up to the | | | | realizable value | | | | of the property, | | | | will be added to | | | | the agreement | | | | value/project | | | | cost, if already | | | | not added, for | | | | arriving at LTV. | | | | | | | | iv. **Inclusion of | | | | Cost of Solar | | | | Photo Voltaic | | | | Lightening | | | | System**: The | | | | cost of rooftop | | | | Solar Photo | | | | Voltaic System | | | | may be included | | | | in the cost/ | | | | agreement to sale | | | | value for | | | | arriving at the | | | | Home Loan | | | | eligibility for | | | | purchase/ | | | | construction/repa | | | | ir | | | | and renovation of | | | | residential units | | | | in respect of all | | | | applicants | | | | willing to | | | | install such | | | | systems. | +-----------------------+-----------------------+-----------------------+ | | | | +-----------------------+-----------------------+-----------------------+ | | | | +-----------------------+-----------------------+-----------------------+ | | | | +-----------------------+-----------------------+-----------------------+ | | | | +-----------------------+-----------------------+-----------------------+ | **6.** | **Option to avail | Prospective | | | Home loan** | borrower(s) c