Purchase of House / Flat / Takeover of Housing Loan

Eligibility

Member/Associate Member of the Bank
For takeover of housing loan a/c. should be standard asset

Area of Operation

Bangalore Urban and Bangalore Rural District (whether to specify area which will be covered – MAP)

Number of sureties required

Spouse of the applicant and the co-obligation/surety of one or more members of the family may be accepted if advised by legal adviser for legal compliance and/or to reckon the income of the family members to arrive at repaying capacity. Co-obligant/surety’s should be member/ associate member. Otherwise they can become nominal member by payment of nominal membership fee of Rs.100/-.

The Member having any liability with the Bank, should have paid the instalments / interest upto date on the date of submission of Loan application if he /she has availed any Loan from the Bank (including co-obligant/sureties).

Documents required: As applicable to security offered

Parent deed/vender’s title deed.
Sale deed.
Possession certificate.
Khatha certificate.
Khatha extract.
Tax paid receipt-up-to date.
Encumbrance- 15-30 years till date.
Plan sanction by BBMP/BDA.
Layout plan approved from BDA/BMRDA and other competent authority
NOC from Society (if it is allotted through society).
Betterment charges paid receipt.
DC conversion order in case of converted land.
RTC extract.
Mutation record.
Genological tree.
Pahani
Self affidavit (Self acquired/ancestral).
Any other document as required by Legal Scrutiny Report.
Loan pass sheets (takeover)

Maximum limit

Rs.50.00 lakhs

Margin

Not less than 35% of value as assessed by the Bank’s valuer

EMI

Monthly compounded on reducing balance (EMI for your required of loan refer EMI Calculator)

Maximum Repayment Period

180 Months including moratorium period.

Moratorium period

Maximum of 18 months

Income Proof

Latest Salary Slip and Form – 16 issued by employer
if assessee – IT returns, balance sheet, P & L A/c and computation of income.
Rental agreement (income proof).
The applicant should furnish full information about his source of income/ income generating capacity along with documentary evidence to assess his repaying capacity.
Any other income proof acceptable to the Bank.

Penalty for foreclosure

Commitment charges at 2% of the amount paid for pre-closure of loan within a period of three years from the date of release of loan, or in the event of advance payment of more than 50% of the outstanding balance at the beginning of the financial year on such advance payment.

Mortgage type

The mortgage shall be registered in the Office of Sub Registrar having its Jurisdiction and Encumbrance certificate should be obtained incorporating the Bank charge recorded in the books of Sub Registrar.

Release of loan

Disbursement of loan shall be made directly to the Vendor.
Disbursement of loan shall be made directly to the Bank/ Financial Institutions (Takeover)

Rebate facility for prompt repayment

At Present interest rebate of 1% will be allowed for prompt repayment of EMI every month. The Board of Directors have right to reduce or withdraw the rebate facility.

Documents required substantiating the purpose of loan:

Sale Agreement, Letter from builder regarding non-encumbrance of the property, Proof for margin money.
NOC from Bank/Financial Institutions (Takeover).

Interest rate and interest application frequency:

Amount	Rate of Int.
Upto Rs.5.00 lakhs	10.00 %
Above Rs.5.00 lakhs upto Rs.20.00 lakhs	11.00 %
Above Rs.20.00 lakhs upto Rs.50.00 lakhs	12.50 %

The Rate of Interest will be charged and compounded at monthly intervals and interest so charged will be capitalised. Interest rate is subject to revision from time to time as per the directives of Reserve Bank of India or as per the decision of the Board of Directors.

Charges

Service charges 0.5 % of the loan amount sanctioned + service tax
Processing charges Rs.2079/- (including legal and valuation)
In case of registered mortgage stamp duty of 0.10 % of the loan amount sanctioned + reg fee. Of 0.10% of the loan amount sanctioned.

The above charges are subject to change.

Share link:

Share link to borrowings at 2.50% of the Loan amount sanctioned plus share fee of Rs. 5/- per share of Rs.100/- each are payable at the time of release of Loan.

Insurance

The borrower shall get the mortgaged property insured against fire and other risks and the premium has to be paid by the borrower. Such fire policy shall be in the name of the borrower with Bank clause and renewed every year and if the borrower fails to do so the bank is empowered to debit the members’ account and renew the insurance.

Commitment charges for loans not availed within specified period of sanction.

1% per annum on the loan/limit sanctioned from the date of sanction till the date of availment. Fraction of days, more than 10 days shall be treated as month.

If the loan is not availed within 4 months from the date of communication of sanction, commitment charges should to be collected.

The loans, if not availed within the above period of sanction requires renewal with commitment charges.