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Q: For what purpose can a customer avail a home loan?
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A:
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Home Equity.
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Self-construction.
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Extension / Alteration / Upgradation of an existing property.
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Purchase of a Resale House/Flat.
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Purchase of a Used House/Flat.
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Composite Loan (Purchase of a Site + Construction)/(Purchase of a House/
Flat+Extension /Upgradation).
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Balance Transfer from other Banks/Fin. Institutions with Top Up Loan.
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Q: Can branches process and sanction the Home Loans?
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A:
Local Branches would collect your loan documents, send the complete file to the
Regional Office and follow up for speedy disposal of the file. Branches will
also answer all your loan queries during the currency of the loan and after. |
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Q: Should I apply only after identifying the property of my
choice?
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A: Application
can be made even before the property is finalized or identified.
In-principle approval can be given based on your income and capacity to repay.
This makes the entire process of identifying and buying a house easier and more
flexible. This in-principle approval is valid for 3 months making it convenient
to choose a flat/house of your choice. However the Bank has a right to
alter/modify the terms of the sanction. |
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Q: Can I avail loan for alteration of property or construction
thereon?
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A:
This is permitted if property is in the name of immediate family members. All
co-owners of the property should necessarily be co-applicants. |
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Q: Can I avail the loan along with my spouse / parents /
siblings to enhance my loan eligibility?
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A:
Yes. Immediate family members can join as co-applicants and their incomes can
be added to enhance the loan eligibility. |
Q: How do I repay the loan?
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A:
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Repayment Period Min - 60 months and Max. - 240 months including
the repayment holiday of a maximum 12 months in case of self construction /
composite loans. However site loan is offered only for a max. 60 months period.
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Repayment will be in EMIs (Equated Monthly Installments) will
begin on completion of the house or 12 months from the disbursement of the
first tranche of the loan, whichever is earlier. Pre-EMI interest shall be paid
by the borrower during construction period till the commencement of first EMI.
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Mode of Repayment will be through.
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PDC (post dated cheques). |
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SI (standing instructions) on a Savings Bank account. |
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Q: When does my EMI fall due?
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A: It depends on
whether your case is of self construction or a purchase. The same is
illustrated with sample cases in the table below.
In the event of part disbursals in stages particularly for properties under
construction, the borrower shall pay Pre-EMI interest on the quantum of loan
already disbursed from the date of disbursal till the time of completion of
construction or expiry of repayment holiday whichever occurs first.
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| One-shot Disbursement |
| 3rd April 2006 |
8th April 2006 |
8th May 2006 |
3rd Apr to 7th Apr |
5 |
| 11th April 2006 |
8th May 2006 |
8th June 2006 |
11th Apr to 7th May |
27 |
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Multiple Disbursements
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| 3rd April 2006 |
Date of expiry
of moratorium
3rd March 2007
Date of Completion
of Constr 21st Dec
2006 Date of Possession
6th Jan 2007 |
21st Jan 2006 |
3rd April to 21st Dec 2006 |
262 |
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Q: Can I make partial prepayments?
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A:
You can make prepayments ahead of schedule in parts without any charge/fee
subject to conditions mentioned before.
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Q: Will my EMI be reduced on making partial prepayments?
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A:
On prepayment, the principal is reduced with immediate effect since EMI is on a
daily reducing balance method. As a matter of policy, EMI will kept constant
through out the currency of the loan but tenor will be reduced to the extent of
prepayment.
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Q: If I opt for PDCs as mode of repayment, should I furnish
PDCs for the entire repayment period upfront?
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A:
At a time you need to furnish only 36 PDCs and 1 undated cheque for the balance
EMIs. However, you have to periodically replenish the PDCs at least 3 months in
advance before expiry of the stock of PDCs lying with the Bank. |
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