Housing Loan in SBI, Bellary. HOME LOAN IN SBI Introduction Owing a piece of land or property is a lifetime dream for every individual. There are many Home Loans provider in the market to make your dream come true. But before opt for any home loan provider, need to consider certain factors related to property that interested in buying and also about the salient and also study some home loans in applying a home loan in India. Purchasing and moving into a dream home would generally rank among the top three things on the wish list of most people. A few decades ago finding a bank for financing Home Loan was not so easy. But now taking Home Loan has become very simpler. The RBI has been regularly stashing interest rates, with the result that Home finance loans that came at an interest rate of 16.5% to 18% four years ago are now available at 11.5% to 13% or lower. Each year the finance minister’s generosity during the budget seems to be slowly concentrated for the Home sector and construction sector. Sree Guru Thipperudra College, Bellary. 1
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Housing Loan in SBI, Bellary.
HOME LOAN IN SBI
Introduction
Owing a piece of land or property is a lifetime dream for every individual. There
are many Home Loans provider in the market to make your dream come true.
But before opt for any home loan provider, need to consider certain factors related
to property that interested in buying and also about the salient and also study
some home loans in applying a home loan in India. Purchasing and moving into a
dream home would generally rank among the top three things on the wish list of
most people.
A few decades ago finding a bank for financing Home Loan was not so easy. But
now taking Home Loan has become very simpler. The RBI has been regularly
stashing interest rates, with the result that Home finance loans that came at an
interest rate of 16.5% to 18% four years ago are now available at 11.5% to 13%
or lower. Each year the finance minister’s generosity during the budget seems to
be slowly concentrated for the Home sector and construction sector.
In their quest for attracting more and more customer for Home Loans most of the
banks have sanctioned loans without taking applicant’s capacity to repay loan into
consideration. The result: banks have to initiate legal process under securitization
act. To avoiding legal complication a few private banks have embarked on to
create awareness among the prospective application for Housing Loans.
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Title of the study:
I have undertaken this project entitled “A study on Home Loans in State Bank of
India, Main Branch, Bellary”.
Scope of stud
The fact that finance is the life blood of the every home finance company’s and
it lies in the effective management to finance in organization. It is the largest
source of mobilization of the resources makes it crucial that the funds are used
effectively.
This study helps to assess the effectiveness of the home loan system and the process
of loan. And also assessing safeguarding of the interest of the both parties.
Objectives of the study
To study the home loan practices in state bank of India
To study the home finance with reference to evaluating the process of loan
in state bank of India.
To know the various schemes and types of home loans
To know the benefits of state bank of India home loans
Methodology of study
The value of any systematic and scientific research lies in its methodology
giving a clear idea of the forms of the study and procedure adopted in conducting
it and stating the purpose becomes essentials part of every study. Both primary
and secondary sources of data are employed in this project report.
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Primary data
Primary data is collected through interaction with the official at state
bank of India
Primary data were collected by will prepared questionnaire by the
respondents
Secondary data
Bank profile were made use
Through newspapers and magazines
Through internet
Limitation of the study
The study was based on interaction with the officials at state bank of India main branch, Bellary.
The study was based on available information and documents.
Due to time limitation in depth study has not been carried in relating to few areas.
The study not based on the questionnaire.
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POFILE OF THE REGION
Bellary district takes its name from the word Balari which refers to goddess
Durugamma as this goddess had marijested herself in the town. Some of the events
in the great epic Ramayana are related to this historical place. It is said that Rama
while searching for Sita met Sugreeva and Hanuman at a place which is very near
to Hampi, the celebrated capital of Vijayanagara kingdom. The history speaks
volumes about significant role it acquired during Satavahanas, Kadambas,
Chalukyas of Kalyana, Kalachuryas, Sevunas and Hoysalas period. There upon
the Vijayanagara rulers built the “City of Victory “on the bank of Tungabhadra
River at Hampi in Hospet Taluk. This area which had witnessed the prosperity to
its peak fell into political turmoil after the fall of Vijayanagara in 1565. This
district was transferred to the erstwhile Mysore State on 1st October 1953 from
Madras State. With the re-organization of the districts during 1997, the number of
taluks is reduced to 7. The Harapanahalli taluk has been transferred to
Davanagere district.
Bellary district is spread from South-West to north – East and is situated on the
eastern side of Karnataka State. The district is situated between 14o 30’ and
15o50’ north latitude and 75o 40’ and 77o 11’ east longitude. This district is
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bounded by Raichur district on the north by Dharwad district on the west,
Chitradurga and Davangere districts on the south and Anantapur, Kurnool
districts of Andhra Pradesh on east. It comes under the administrative control of
Gulbarga division and development jurisdiction of H.K.D.B, Gulbarga.
As per 1991 census the population of the district stood at 16.53 lakhs. The
geographical area is 8447 sq.km. It has 2 revenue sub divisions viz., Bellary Sub-
Division and Hospet Sub-Division which have in all seven taluks. The Bellary Sub-
Division has 3 taluks while there are five taluks in Hospet Sub-Division. There are
27 hoblies, two CMCs one Town Municipality, seven Town Panchayat 542
Revenue villages, 436 Thandas/habitations. The rural populations constitute 70%.
The density of population is 196 per sq.km which is much lower than the State
average of 235 per sq.km.
The major occupation of this district is agriculture and 75 p.c. total labour forces
are dependent on agriculture for its livelihood. The important crops grown are
Cotton, Jowar, Groundnut, Paddy, Sunflower and Cereals. The net irrigated area
is 37 p.c. to the net area sown. The pattern of land utilization in the district is as
under (1997-98):
Sl.No Land classification Area (in hectares)
Percentage total area
1. Forest 97,017 11.9
2. Land not available for cultivation 1,21,972 15.0
3. Other un-cultivated land 33,875 4.2
4. Fallow Land 62,982 7.7
5. Area sown (net) 4,97,346 61.2
Total 8,13,192 100.00
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The main source of irrigation is Tungabhadra Dam. The Canal network accounts
for 64 % of irrigated area. The important rivers are Tungabhadra, Hagari and
Chikkahagari. The western taluks of the district are dogged with scarcity
conditions with the failure of rains during successive years. However during the
current year and preceding year heavy rains have created havoc in the district
leaving many in lurch.
Bellary district is rich in natural resources which need to be tapped to a great
extent for overall development of the district. It has both metallic and non-
metallic minerals. The metallic minerals include Iron ore, Manganese Ore, Red
oxide, Gold, Copper and Lead. The non-metallic minerals include Andalusite,
Asbestos, Corundum, Chay, Dolomite, Limestone, and Limekankan, Moulding
sand, quartz, soap stone, granite and red ochre. The metallic minerals are
abundant is only three taluks viz., Sandur, Hospet and Bellary in the order of
mining activity intensity.
There are 23 units of large and medium scale industries in this district with an
investment of Rs.447.76 crores employing around 9,222 persons. At present it
occupies ninth place in the state. However with the commissioning of Jindal
Vijayanagar Steel Limited at Sandur the industry scenario of this district will be
undergoing sea changes. It is understood that Mukund Steels and Kalyani Steels
have plans to start industries in this area. The inflow of investment into these
industries would be around Rs.30, 000 Crores.
HUMAN DEVELOPMENT
Bellary is one of the most backward districts of the State. In terms of the
Human Development Index it is at 17th place among the earlier configuration of
20 districts. Its HDI is 0.429 as compared to State HDI of 0.470.
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LITERACY:
Education is the passport to accelerated economic growth. It is the key to
building human capital and human capital is the vital ingredient in building a
nation. The GOK spends 32% of SDP on education. In Bellary District 42% of
Plan and non-plan expenditure is incurred towards salary component alone. Apart
from this, expenditure is also incurred towards building up of infrastructure
facilities in educational institutions
PER CAPITA INCOME :
Per capita income in the district is much lower than the per capita income in the
state as evinced from the following figures:
Reference Bellary Karnataka
Current Prices (1995-96) Rs 8544 Rs 9384
Constant Prices (1980-81) Rs 2143 Rs 2551
Bellary district stands at 7th place in Income Index among 20 erstwhile districts in
the State but stands at 17th place in HDI which clearly indicate that whatever
income generated is not converted into welfare of the people.
INFRASTRUCTURE:
Roads indicate civilization of a nation. They are means to prosperity, progress and
well being of any country. Rural roads may be defined as those roads which
connects villages. During 5th five year plan constructions of road was made a
component of minimum needs programme. The working group on road for 9 th five
year plan has estimated that an amount of Rs.14040/- crores would be required for
the construction of rural roads to cover 85% of village population. However
Rs.10540 Crores has been proposed for the 9th plan.
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H OUSING
The Govt. of Karnataka has been implementing various rural development
programmes in order to improve the living conditions of rural folk. There is a
substantial increase in the outlay for these programmes in eighth and ninth five
year plans. “Shelter for all" appears to be a distant dream because of its colossal
dimensions with a huge backlog over the period and rapidly growing population.
Shelter is an indication of an individual’s existence, dignity and security. It is
estimated that housing shortage is more than 410 lakh units out of which shortage
in rural areas is more than 265 lakh units. Besides 125 lakh rural houses need up
gradation to make them livable. The National Housing Policy of 1994 clearly
envisages the difference between rural and urban housing. As per survey
conducted during 1994-95, there were 59607 sites less households and 45776
houseless households in the district.
POWER :
At present there are three power generating stations in this region viz,
The Hampi Power House
The Tungabhadra Right Band Power House
The Munirabad Power House
The installed capacity of the above power stations is 99 Megawatts. The Jindal
Vijayanagara Steel Limited Power Generating Plant is expected to be
commissioned shortly with an installed capacity of 260 MW out of which 130 MW
is likely to be available for other users. The Government of Karnataka has
approved setting-up of a Thermal Power Plant of 500 MW capacities near
Kuduthini by the KPCL at an estimated cost of Rs.2, 000 crores. This project
construction is likely to be started during 2000-2001.
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INDUSTRY PROFILE
Home loans are usually the largest loans that consumers will ever make. Because
of this, it is important to know how home loans started, the different types of home
loans and the similarities and differences between them. In this way, consumers
can make the best decision on which loan is the best for their purposes.
For many years, the only way in which to obtain money to purchase a home was to
apply for a conventional home loan. This type of loan was obtained through a
bank, credit union or other private, non-government-affiliated financial
institution.
History of Home Loans
In 1938, the Federal National Mortgage Association, better known as "Fannie
Mae," was created and established as a federal agency by then-President Franklin
Roosevelt as part of his New Deal. It made it possible, even during a time when
most people were out of work and had little, if any, income to still be able to afford
a home.
In 1970, the Federal Home Loan Mortgage Corporation, known as "Freddie
Mac," was created to lessen the "monopolization" of home lending that it was felt
that Fannie Mae enjoyed. Both Fannie Mae and Freddie Mac were at one time
considered "government" auspices, but now are considered private
establishments.
Help for Veterans
World War II came along and hundreds of citizens went to war. When it ended,
they returned home to pick up their lives where they had left off, or to start a life.
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These people needed places to live, so the Serviceman's Readjustment Act of 1944,
Public Law 78-346, was enacted. This made it possible for veterans borrow money
for the purchase or building of a home. Several major changes in the Act have
been made in the years since 1944, allowing veterans of subsequent wars, such as
Korea, Vietnam and, most recently, the Gulf wars, to have the same advantages in
obtaining home loans.
Home Loans scenario in India
The Home loan sector in India is the pi-vital role player in the growth of the real
estate scenario in India. With tax incentives given to the housing finance sector in
the annual budget of 2001, transactions related to buying and selling of residential
properties increased considerably and was much higher as compared to previous
years.
Since the new class of buyers are relatively younger set of customers who are more
aware about legal documentation and approvals, buyers are now more 'end-users'
rather than investors; the property market in India undergoes transformation to
align itself with global standards with an increased emphasis on quality & cost
control and documentation methods. In the current economy of India, the real
estate sector has the maximum propensity to generate income and demand for
materials, equipment and services. It can be said that housing finance companies
were formed for co-existing with buyer's requirements of housing loans for
investing in properties. Home loans are made available by financial institutions to
both Indian and NRI customers at floating and fixed rate of interest and also at
Term Loan or OD as in SBI MaxGain up to Rs.1 Crore.
Loan amount
For Home Loans above Rs 75.00 lacs
Interest rate
Card Rate applicable over the tenor of the loan is 1.75% over the Base Rate, present effective rate being 10.00% p.a.Concessions including discretionary concessions will be available over the tenor of the loanNo Fixed Interest Rate option.
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Processing Fee
The revised processing fee structure (including service tax) is as under:
An innovative and customer-friendly product to enable you to earn optimal
yield on your savings and minimize interest burden on Home Loans, with no extra
cost. The loan is granted as an Overdraft facility with the added flexibility for you
to operate your Home Loan Account like your SB or Current Account. The
product serves to minimize your interest cost by enabling you to park your surplus
funds in ‘SBI-Maxgain’ (with the benefit to withdraw the surplus funds whenever
you require), specially in the wake of low yields from other deposit/ investment
avenues.
Minimum Loan Amount: Rs.5 lacs
Maximum Loan Amount: Rs.1 Crore
SBI Realty
A unique product if you are on the lookout for a loan to purchase a plot of land
for house construction. The loan is available for a maximum amount of Rs.1 crore
and with a comfortable repayment period of up to 15 years.
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House construction should commence within 2 years from the date of availment of
‘SBI-Realty’ Housing Loan. Customers are also eligible to avail another Housing
Loan for construction of house on the plot financed above with the benefit of
running both the loans concurrently. (Other terms and conditions – as applicable
to regular Home Loans).
Name SBI Realty
Max amount
10 cror
Margin 20% up to 75 lakhs.25% above 75 lakhs and up to Rs. 1 crore.50% above 1 crore.
Features Properties to be valued by two independent empanelled valuations to be consider. AndTwo title search reports to be obtained one before loan sanction another before disbursement.
NAI
30% up to Rs.2 lakh40% NAI above Rs.2 lakh and up to Rs.5 lakh 450% NAI above 10 lakh 5% NAI above Rs.5 lakh and up to Rs.10 lakh(may be relaxed by 10% sanctioning authority if customer Undertakes to complete construction of house by own source).
SBI Home Plus
SBI Home plus is scheme is launched for granting personal loans to the banks
home loans customers against the security of their house property. All home loans
customers with a satisfactory repayment record of at least one year and who
maintain a Savings bank or current account with us.
The loan can be used for any purpose, viz. extension/repair of house, purchase of
car/ consumer durables, education / medical expenses of family members, personal
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expenses, etc. There will be no need to obtain documentary evidence for the end-
use of funds. However a certificate from the customer in the application to the
effect that the loan will not be used for speculative purposes would be obtained.
Name SBI home plus
Min amount Rs.25,000
Max amount Rs.10 lakh
Margin 15%EMI 60%
Repayment If EMI extended to cover the loan max 120 months including moratorium.If EMI not extended, lower of remaining HL tenure or 120 months including moratorium.
NRI Home Loans
State bank of India provides SBI NRI home loan for building a new
house/flat, buying an old house/flat or repair and reconstruction of house.
However, SBI lays down certain pre-conditions for NRI to avail home loan. The
conditions are:
The loan seeker should have stayed in India for at least 182 days or more.
The loan seeker should be at least 21 years old/
The loan seeker should have valid Indian passport.
Should have been working abroad for at least 2 years with valid job
contract.
The loan seeker should have a steady flow of monthly income with stable
employment/business to ascertain the repayment capacity.
Non Resident Indians (NRIs) should have a valid Indian passport.
Loan Amount
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The loan amount is to be determined on the basis of repayment capacity taking
into account income, age, assets and liabilities, qualifications, stability of
occupation, and employment prospects on return. The loan amount is subject to
the following:
Minimum: Rs. 3 lacs
Maximum: Maximum permissible loan amount would be determined by
EMI/NMI ratio criteria as applicable to regular Home Loans scheme for Resident
Indian customers, which is 30% for Net Annual Income (NAI) up to Rs.2 Lac,
50% for NAI above Rs.2 Lac and up to Rs.5 Lac, 55% for NAI above Rs.5 Lacs
and up to Rs.10 Lacs, 65% for above Rs.10 Lacs.
SBI Tribal Plus
'SBI-Tribal plus’ Home Loans, a Special Scheme designed for Hill/Tribal
areas for extending financial assistance to individuals in such areas to:
a. Purchase or construction of a new house / flat (without mortgage of land)
b. Purchase of an existing house / flat which is not more than 10 years old.
c. Repair /Renovation/extension of an existing house or flat.
d. Loans given against Third Party Guarantee
Features/conditions
For employees:
Age min 21 years, loan to be fully repaid by the age of 65 years.
Min 5 years of service4
36 times NMI’s
Min liquid security- 30% of loan amount (AGM region/branch may reduce
it to 15% of the loan amount in respect of tie-up with government
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departments reputed corporate with availability of bulk business potential
of less than Rs.2 crore.
For professionals, self-employed, businessman, and agriculturists:
Min 5 years of experience.
Maintaining deposit account with average balance of Rs.500/- for last 2
years or
Maintaining loan account for a minimum period of 2 years (without any
instance of overdue and bouncing of cheques etc).
Classified as standard assets.
Loan: 2 times of average NAI for the last 3 years.
Min liquid security 50% of loan amount.
Max repayment- 15 years.
Margin: If construction/purchase: 15%, if repairs: 20%
Sahyog Niwas
The Sahyog Niwas scheme has been instituted to finance the self help groups
with a good track of payment record for 2 years, for on lending to members for
housing in rural areas, covering the following purposes.
For the purchase or construction of a house exclusively or including the
housing needs of activities carried by them. (Dairy shed, tailoring shed/shop,
grocery stores etc.)
For the renovation or repair of an existing house / shed
For the purchase of a plot of land for the purpose of house construction.
For the extension of existing house / work space to existing house /shed.
Loan amount:
Loan amount 10 times the savings the corpus of SHG including limits already
sanctioned.
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SBI Green Home Loan
State Bank of India has adopted a Green Banking Policy with an objective of
contributing towards the fight against the adverse climate change. One of the
initiatives approved by the Board for this purpose is incentivizing customers who
go in for Green Projects, i.e. those projects which reduce Carbon Emissions and
promote Renewable Energy. “Green Housing” or “Green Home” is one of the
types of projects identified for this purpose.
Special concessions:
5% waiver in margin.
0.25% concession in interest rate.
Waiver of processing fee.
Other terms and conditions – as applicable to regular Home Loans.
5. Related Home Loan products:
Earnest Money Deposit (EMD) Scheme
Many Government agencies, like Urban Development Authorities and Housing
Boards, periodically come out with schemes for sale of plots/houses, wherein
applicants have to submit 10-20% of the cost of plot/house as Earnest Money
Deposit (EMD) and allotments are made by draw of lots.
The SBI EMD scheme is designed for financing against earnest money for
allotment of a house/plot. Individuals above 21 years of age and with a steady
source of income are eligible to avail loans under this scheme.
Salient Features of the Scheme:
No minimum income criteria.
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Margin waived in al cases.
Eligible for 100% of application money, subject to maximum loan amount
of Rs.10 Lacs.
Waiver of security in all cases irrespective of the loan amount.
The above mentioned features of the scheme are applicable subject to the
following conditions:
Allotment letters/refund orders should be routed through SBI.
Lump sum amount equal to 6 month’s interest to be taken upfront.
PDCs one for the principle amount of EMD and another towards interest
for the next 6 months should be taken to meet the eventuality of refund
getting delayed.
Repayment:
By refund in case of non-allotment
By regular HL in case of allotment but not more than 12 months from the
date of disbursement of the loan.
SBI Reverse Mortgage loan
SBI Reverse Mortgage Loan enables house-owning Senior Citizens having
inadequate income to meet their financial needs for renovation/repairs to house,
medical & other personal purposes. There is no compulsion for the borrower to
repay a RML during his or her lifetime or till such time he or she continues to stay
in the house.
The borrower continues to retain ownership of the house. Also, the borrower will
have the option to prepay the loan at any time during the loan tenure and there
will be no pre-payment penalty. The min amount is Rs.3 lakh and max amount is
Rs.1 crore.
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Features/conditions
Age: above 60 years(first borrower), when loan jointly with spouse, age above 58 years should not have more than one securing spouse undertaking to not re-marry during loan term.
Loan availed jointly with spouse: Loan tenure: 15 years if age of younger
borrower up to 68 yeas and 10 years if age of younger borrower above 65 years.
Loan availed in single name: 15 years if age of borrower up to 68 years and
Loan tenure 10 years if age of borrower above 68 years.
Loan amount: 90% of value of property (it includes interest still maturity).
Loan may be disbursed in monthly/quarterly installments or 50% in lump sum
and remaining 50% though periodic payments.
6. NEW PRODUCTS
These home loans are lunched recently in order to provide better service and
modern services to consumers. The new products are:
SBI Surakshit Home Loan:
A separate product for customers who opt for home loan with life insurance
cover. Other features like tenure, loan to value, eligibility as per the standard
schemes.
SBI yuva home loan
Features/conditions
Type of loan :Term loan only
Eligibility : Salaried employee of companies form the private sector,
MNC’s, Government undertakings, PSU’s Government
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employees.
Age : Between 21 years to 35 years.
YUVA couple : Min contribution of 25% to combined EMI by each
of husband and wife then upper age limit stands
relaxed to 40 years
YUVA family : Contribution of 75% to combined EMI by Yuva or
Yuva couple, then parents may join as co-borrowers
Min NMI : Rs.50,000/- expected rental income from proposed
property not o be added.
Loan term : Maximum 300 months
Repayment : Fixed loan term of 240 months
First 36 months only interest applied during the
month will be recovered. 37th month onwards 204 EMI’s
Loan amount : 20% extra i.e., 1.2 times the loan as per regular HL
based on EMI/NMI ratio
Benefit under corporate salary package if Employee Company covered under
CSP if not under CSP, then festival loan (DL) equivalent to 3 months NMI
repayable within 36 months permitted.
Features/conditions, other then those mentioned above will be the same as
those applicable to SBI home loan scheme.
SBI Home Loan PAL ( Pre-Approved Limit )
Benefits of this product:
1. Under this, your Eligible Loan Amount is assessed before finalization of
property deal and a Pre-Approved Loan Arrangement Letter (PLAL) is issued to
you.
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2. Customer can confidently negotiate with the builder/seller after getting a
sanction.
Features
Minimum age: 18 years as on the date of sanction
Maximum age: 70 years. i.e. the age by which the loan should be fully repaid,
subject to availability of sufficient, regular and continuous source of income for
servicing the loan repayment.
Loan Amount: Actual loan amount will be determined taking into consideration
such factors as applicant’s income and repaying capacity, age, assets and
liabilities, cost of the proposed house/flat etc. To enhance loan eligibility you have
option to add:
1) Income of your spouse/ your son/ daughter living with you,
provided they have a steady income and his/ her salary account
is maintained with SBI.
2) Expected rent accrual (less taxes, cess, etc.) if the house/ flat
were being purchased is proposed to be rented out.
3) Depreciation, subject to some conditions.
4) Regular income from all sources.
Security: Equitable mortgage of the property.
Margin/ LTV Ratio:
Loan Amount Margin (Min.) Maximum LTV Ratio
(Max.)
Upto Rs. 20 Lacs 10% 90%
Above Rs. 20 Lacs. 20% 80%
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7. GRAM NIVAS SCHEME
This customized offering is an extension of the social responsibility that we have
shouldered since the very inception of the Bank. The objective of this scheme is to
comprehensively cater to the needs of the village community with special focus on
poorest of the poor for Housing Loans keeping in view the peculiarity of the
ownership title in rural areas, social habits, type of construction and other related
needs.
Features
Operational Area
The Scheme will cover all rural and semi-urban centres. 'Rural Area' for the
purpose of the Scheme is the area comprised in any village including the area
comprised in any town, the population of which does not exceed 50000 as per 1991
census.
Eligibility
The applicant should be between 21 years and 50 years of age
Individuals having satisfactorily conducted deposit accounts for two years,
or
Individuals whose existing loan account is satisfactorily conducted and is
Standard Asset, or
A member of a Self Help Group having savings/ loan accounts with us
Applicants above 50 years may be considered for sanction of loan with all the legal
heirs joining as guarantors or after obtaining a suitable no objection agreement/
power of attorney from the legal heirs
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Loan Amount
The loan amount will be:
5 times the Average Annual Income from agriculture including income
from ancillary agricultural activity, or
5 times the Net Annual Income in case of employees, or
5 times the Average Annual Income from the business/ profession
To enhance the loan eligibility you have the option to add:
o Income of your spouse
o Regular income from all sources
The loan amount is, however, subject to the following limits
For construction/purchase of house: Rs.2.00 lacs
For repairs/renovation: Rs.1.00 lac
For purchase of land: Rs.0.30 lac
Margin
10% of the project cost
Assessment of Eligibility
For loans upto Rs.0.50 lacs – on the basis of simple estimates
For loans above Rs.0.50 lacs – on the basis of unit costs for different types of
houses as fixed by the Bank
Security
For loans upto Rs.0.50 lacs – only third party guarantee is required
For Loans above Rs.0.50 lacs:
Equitable/ Registered mortgage of the House/ Flat, or
Any other tangible security including agricultural land to cover 100% of