Type of loan

Long term loan – Non-agriculture. 

Method of Repayment

EMI / Non-EMI 

Purpose    

Construction/ Repair / Outright purchase of houses 

Eligibility criteria

Individuals. 

Scale of finance     

Not applicable. 

Limit of loan

Rs:30 Lakhs or 80% of estimated cost whichever is less. 

Margin                    

20% 

Mode of sanction

1)   3 installments for new house (20%, 50% and 30% of sanctioned amount.) 
2)   2 installments for repair (50% each) 
3)   Single installment for outright purchase.

Holiday period

1)   12 months for construction of new house
2)   6 months for repair of existing house 
3)   No holiday period for outright purchase. 

Repayment period

300 Months. 

Rate of interest

As per interest structure. 

Penal Interest

2% for overdue installments. When the loan becomes fully overdue 2% of additional interest  on contract rate is charged. 

Charges

1)   Up to 50000 service charge is collected @0.25% of total Loan amount sanctioned. Above 50000 it is @0.5%.this is credited under the head HO miscellaneous  income.
 2)   Risk fund @0.25% of loan amount is collected from the loanee with a minimum of Rs: 100 and a maximum of Rs:525. Risk fund collected is kept under Suspense Liability and once in a month transferred to HO. 

Subsidy/Re-finance

Nil 

Security    

Mortgage security.