For individuals in business / profession or self-employment.

•  Equal to average annual income of last 3 years x 4 times to be worked out as   eligibility for quantum of loan. For example, if the average income of a   businessman / Professional is around Rs.5.00 lakhs (to be ascertained from sources   such as Balance sheet, Income tax return etc.) then the loan quantum in such cases   would be Rs.5.00 lakhs multiplied by 4 times which works out to Rs.20.00 lakhs - or
•  85% of the cost of the house / flat to be purchased / constructed.
•  Loan eligibility will be minimum amount of (a) and (b) above.

In case of individual businessmen or professionals, the income may be ascertained from different sources such as
(1) Balance sheet, (2) Income tax returns etc.

Before considering the sources, consistency of income be ensured. For the businessmen carrying proprietary concern and professionals/self employed persons, the term total income would mean “Net Profit plus Depreciation”. However, repayment obligation on account of term liabilities should be taken into consideration while deciding the quantum of loan and EMI.

For Farmers
For finalizing the quantum of loan, net annual income may be considered. (i.e., 4 times of average net income of last three years).The branches may cross check the Gross & Net Annual Income of the applicant with reference to the land holding, cropping pattern, sugar factory bills/cotton bills, Agricultural Produce Marketing Committee Bills etc.
The loan quantum depends mainly on the repaying capacity of the applicant. Branches may consider other factors such as past experience in repaying the loans availed.

Income of Spouse and other relatives:
The income of son, daughter, sister, brother alongwith the spouse to be taken for deciding the quantum of loan and repayment capacity provided the property is in the name of all joint members or their guarantee is obtained.

Maximum Amount
•  For Purchase/Construction of House Property: No maximum limit for Metro and   Urban area. In respect of Semi-urban & Rural area , the amount of loan should not   exceed Rs 15.00 lakhs .
• For repairs & renovation the amount of loan shall not exceed Rs 5.00 lakhs in all   the areas (i.e. Rural / Semi-Urban/ Urban / Metropolitan).

Margin
For Purchase/Construction of new House Property : Minimum 15%
For Purchase/Construction of old House Property : Minimum 25%
For repairs and Renovations : Minimum 25%

Repayment
•  Maximum repayment period shall be-
•  For purchase of new / Old house / flat 240 months
•  For repairs / renovation 60 months
•  For extension of House 120 months
•  Repayment will be by equated monthly instalments (EMI).
•  Repayment will start one month after full disbursement or 18 months after the first   disbursement whichever is earlier.
•  In case of farmer borrower repayment may be fixed Annually or Six monthly in   accordance with the cropping pattern, harvesting time, income from allied activities   etc.
•  Depending upon the option exercised by the borrower, interest for the moratorium   period be got repaid as and when applied or capitalized and suitable EMI be given.
•  In case of salaried persons, the repayment would be maximum upto date of   retirement. In case the instalments are proposed to be continued from the monthly   pension, in such case the amount equal to loan balance at the time of retirement   should be kept in the term deposit from terminal benefits/other sources under lien.
•  Total deduction inclusive of proposed repayment instalment should not exceed   65% of monthly gross income for salaried borrowers and for others 65% of annual   gross income.
•  In order to ensure that on regular repayment of EMI, loan account should be   closed at the end of the term of the loan, it is decided to introduce the uniform   procedure in respect of repayment linked to EMI, which is provided at Annexure-I.   You are requested to strictly adhere to the procedure.

Security
•  Loan amount up to Rs.25,000/- - One acceptable guarantor having sufficient   income / net worth.
•  Loan amount above Rs.25,000/- - Simple (Registered) / equitable mortgage of   house property to be purchased and guarantee of the spouse.
•  In case house property cannot be mortgaged for some reasons, NSC, FDR (of our   Bank), Government security or such acceptable security equal to quantum of loan.   Security in the form of Shares should not be accepted.
• In cases where the income of the spouse/other relatives is reckoned for   determining quantum of loan and repaying capacity and is not co-owner of the   house , the spouse/ relatives to be taken as additional guarantor to the housing   loan.

Processing Fee
Upto Rs. 5 Lakh: Rs. 1000/-
Above Rs. 5 lakh and Upto Rs. 15 Lakh: 2500/-
Above Rs. 15 lakh:5000/-