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)   18 months for construction of new house
2)   12 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 @0.35%.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.