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Corp Mortgage - Loan against property
1. Eligibility
| v | Individuals in the age group of 18-65 years owning residential / commercial property [land and/or building] and who are Income Tax Assessees. |
| v | Loan against Agricultural / Industrial property strictly not permitted |
| v | It is mandatory that applicant should be an IT assessee. |
| v | NRI, Partnership Firms, Companies, HUF and Trusts are also eligible. |
| v | Repayment period not to go beyond 70 years of age of the borrower unless co applicant/s has independent income to service the loan. |
| v | In case of salaried class, repayment period not to exceed the retirement age. |
| v | Close relative/s to join as co applicant/s to supplement repayment capacity. |
| v | In case of Firms/ Companies/ Trusts/ HUF, Partners/ Directors/ Trustees/ Co- Parceners with regular & independent income to join as Co- applicants to supplement repayment capacity. |
| v | Where the property is in the name of close relative, who do not have regular/ independent income, he/she must join as co-applicant, irrespective of age. |
| v | More than one loan is also extended, to the applicant against the same/ any other property subject to required margin on security, Income, repayment capacity etc. |
| v | In case of Firms/ Companies & Trusts, loan is considered against the property owned by Partner/ Director/ Trustee. In such cases, owner of the property to join as co applicant to the loan. |
| v | All other Partners/ Directors/Trustees to join as common guarantors to the loan, OR may join as Co-applicants to supplement repayment capacity. |
| v | Net monthly income of Rs. 20,000/- for salaried Individuals. |
| v | Net annual income of Rs. 2,50,00/- for other than salaried class. |
| v | Cash accruals/Depreciation also added to income, in case of borrowers other than salaried class. |
2. Purpose
To meet personal expenses like marriage, medical, etc. & for businessrequirements.
3. Nature of Facility
Facility in the form of either Running account or Term Loan as per the requirement of borrower.
4. Loan Amount
| v | The maximum loan amount not to exceed 5 times of the Net annual Income. |
Minimum Rs. 2 lakh & Maximum Rs. 50 lakh.
Rural : Rs. 5 lakh
Semi Urban : Rs. 10 lakh
Urban : Rs. 25 lakh
Metro & Port Town : Rs. 50 lakh
| v | Loan amount mentioned above is based on the location of the property and not category of the Branch. |
5. Margin
| v | Loan amount is restricted to 50% of the market value of the Property Mortgaged, as per the latest valuation report, not older than 6 months, from the Approved Valuer of the Bank. |
| v | Loan under the scheme can also be sanctioned on unencumbered value of the property already mortgaged to the Bank for housing And/OR Corp Vidya loan. In such cases, value of the property shall be 200% of the aggregate credit facilities availed against such property (i.e. uniform margin of 50% shall be maintained on the value of such property against total credit facilities availed). |
6. Rate of Interest
14.50 % under floating rate (W.e.f: 02.08.2010 )
(Fixed rate option is not available under the Scheme).
7. Security
Mortgage of immovable property against which the loan is sought. Age of the property to be mortgaged not to exceed 20 years.
8. Guarantee
Not Mandatory
9. Processing Charges :
1.00% of the loan amount sanctioned up-front.
(Charges are inclusive of service tax)
10. Prepayment Charges Nil
11. Repayment
| v | Where the loan is in the form of Term loan, the same is repayable within maximum repayment period of 7 to 10 years. |
| v | Term loan is subject to annual review. |
| v | Running account facility is subject to annual review/ renewal and repayable on demand. The limit once sanctioned will hold good for 3 years. |
| v | Revaluation of property done, once in 3 years. |
| v | Enhancement of limit on the basis of revaluation of property before completion of 3 years not permitted. |
| v | In case of salaried class, repayment period not to exceed the retirement age. |
| v | EMI/Notional interest as a percentage to net income is applicable as per applicable guidelines. |
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