República de Corea

Eligibility Individual & Joint Owners

Purpose & Extent

Purchase of Plot Rs.20 lac. However, RM & above may consider Loan upto 50 lac.

Semi -built House/flat

from Pvt Builders Small/Medium branch Rs. 10 lacLarge branch Rs. 20 lac ELB/VLBs Rs. 40 lac CH (AGM) Rs. 100 lac CH (DGM) Rs 100 lac GM Rs.150 lac Repair & Renovation Rs. 20 lac

Cost of furnishing Max. 10% of the loan upto maximum of Rs. 2.00 lac

Pari pasu Charge CH powers up to 20 lac to Govt. Employees

Freehold & Lease hold

➢ The loan can be granted both for freehold and for leasehold property.

➢ In case of Leasehold, loan can be granted on the basis of P/A from original allottee where DDA/PUDA/HUDA permit conversion of leasehold into freehold property.

➢ Otherwise advance is not permitted against plots purchased on Power of Attorney basis.

Capital Requirement

Loan limit up to 30 lac Risk Weight is 50% Loan limit above 30 lac Risk Weight is 75% LTV Ratio more than 75% Risk Weight is 100%

Margin Land/Plot 40%

Construction/repair/add

ition 25%

Rate of Interest

Rate of Interest as per LA Circulars issued from time to time.

➢ 0.50 % extra will be charged on H/L for 3rd House.

➢ The interest can be fixed or floating

➢ Option can be changed from fixed to floating and vice versa with flat charges of 2% fee on Balance outstanding

➢ Fixed Interest rate be reviewed/reset after a block of 5 years in respect of loans disbursed on or after 1.8.2006.

Concessional Rate of Interest for Defense Employees

Bank has decided to extend concessions to Defense personnel who are raising Housing Loans under bank’s regular Housing Loan scheme for public as under:

➢ 25 bps relaxation in interest rates ➢ 50 bps relaxation in processing fee These relaxations are to be made applicable in all new cases where defense personnel avail housing loan either in single name or along with spouse.

Repayment ➢ Maximum 25 years including Moratorium period of 18 months

➢ Installment can be fixed up to maximum age of 65 years. Hub Incharge of Scale- IV and above besides Circle Head can relax the age up to 70 years,

➢ Repayment of loan for repair/renovation/addition/alteration restricted to 10 years including moratorium period of 6M.

➢ All deductions should not exceed 50% of Gross monthly income. However where gross monthly salary is above 50000/-, the deduction can be up to 60% and if gross monthly salary is above 100000/-, the deduction can be up to 70% with the permission of CH. The income of earning spouse and children can be taken into account.

➢ The Income of spouse and earning children can be taken into account provided they are made co-borrowers. ➢ Father/mother can also be made co-

borrowers in cases where property is in the single name of his/her son and also clubbing of their income is permitted for determining eligibility criteria. ➢ Minimum 24 advance cheques should

be obtained. As and when, 6 cheques remain, fresh lot be obtained. Out of 24, 23 cheques should be of installments and 1 cheque should be of the amount equal to the balance amount.

Graduated EMI

PNB offers benefit of graduated EMI. This means that the customer has the option of choosing EMI that can increase or decrease during repayment period rather than being given a fixed EMI over repayment tenor.

Upfront fee 0.90 % of loan amount + service tax & education cess (10.30%) on loans above 300 crore.

Processing fees @ 0.50% of loan amount (max. 20000) +service tax for loans up to 300 crore.

charges

Security ➢ Equitable/Registered Mortgage of Immovable Property

➢ Tripartite agreement be executed amongst Housing Board/Dev

Authority/Coop Society/Builder, the borrower and the bank where mortgage cannot be created immediately. In such cases, 3rd _party

guarantee is also to be obtained.

➢ EM of other IP or pledge of NSC etc. up to 125% of loan amount if

property is being purchased from 1st _{P/A holder and where there is}

delay in execution of Tripartite agreement or where the mortgage of property is not possible being an ancestral property (without title deeds) or Lal Dora Land.

➢ Verification of security is required once in 2 years. In case of NPAs accounts, security is to be verified on Half yearly basis.

Guarantee In general, no guarantee is to be asked for. But while preparing RBL score sheet, if score is less than 50%, then 3rd _{party guarantee}

can be obtained to raise score of the applicant. Insurance In case of building at Re-construction cost.

Priority Sector inclusion

Repair & Renovation Rs.1.00 lac (Rural & Semi/Urban) Rs.2.00 lac (Urban)

Others Rs. 20.00 lac

Other features ➢ Loan can be sanctioned by the branch/hub near to the present place of work/posting/residence of the borrower. However, if the property is situated at other place, services of branch/hub located at that center may be availed for verification of Security and NEC/Valuation etc.

➢ Loan can be granted even if property is in the name of wife/parents provided that the owner is made co-borrower.

➢ Loan can be granted for 2nd house in the same city.

➢ Loan can be granted for purchase of house for rental purpose. ➢ For take over, permission of higher authority is not required

Important conditions

Loan cannot be granted

➢ For construction in Un-authorized colonies ➢ If property is to be used for commercial purpose ➢ Without approved Map

( In Compliance of Delhi High Court Orders)

➢ Pre-payment charges of 2% be recovered on account being taken over by another bank. In case, the loan is pre-paid out of

own sources or the loan is taken over by another bank with in 30 days from date of circular by which either the interest is raised or any important term or condition is changed, there will be no pre-payment charges.

➢ Flat pre-payment charges of 2% be recovered from borrowers who pre-pay without construction on the plot before 5 years. ➢ Powers of concessions in rate of interest/other charges stand

withdrawn vide RBD cir no. 52/07 dt. 13.11.07.

In case, the construction of house is not completed within 3 years or in case the plot is sold, penal interest @2% over and above the applicable rate be charged.

Expression of Interest

It is a letter issued by the bank/branch wherein the lender expresses intention to make advance to the intended borrower on the basis of eligibility criteria subject to the fulfillment of terms and conditions.

Grih Raksha Kavach

It is Mortgage Reducing Term Assurance Policy issued in Tie up arrangement with TATA-AIG. There is one-time premium of 2.5% (approx) and that amount can also be financed. The coverage of the scheme is 1-20 years. The sum assured is between Rs.10000 to Rs. 1.00 crore. In case of death of the borrower, receipt from insurance company can be utilized towards adjustment of loan amount as per amortization table. Prior permission of TATA-AIG is required if amount is over Rs. 80.00 lac.

Iffco Tokyo general insurance co.

The coverage for accidental death and permanent total disability (due to accident) along with mandatory insurance “Fire Policy – including earthquake” is offered in tie up arrangement with Iffco Tokyo General Insurance Co. Ltd. To all existing as well as new borrowers.

Earnest Money Deposit

Scheme

➢ To meet the requirement of earnest money to apply for plot/flat/house from State Housing Boards and Urban Development authorities.

➢ These authorities undertake to refund or issue allotment letter to the bank subject to eligibility of the bank for proposed loan and future requirement of Housing Loan.

➢ Extent of loan is 90% of EMD or max. Rs 2.00 lac in the shape of Demand Loan

➢ ROI is BPLR – 1.75%

➢ Repayment through Refund order/Housing Loan/Bullet Payment. ➢ Guarantee clause deleted

OD Facility to existing H/L borrowers

OD facility can be allowed to existing Housing Loan borrowers there is no IR irregularity. Other features of the scheme are as under:

➢ Minimum 50000/- and Maximum Rs. 5.00 lac.

➢ Additional limit and present o/s should not exceed 75% of current market price of the house so as to maintain margin of 25%.

➢ Upfront fees is NIL and documentation charges are Rs. 500/-.

➢ Take home salary should not be less than 40% of gross salary. ➢ Loaning powers are SB-Nil, MB-

Rs.4.00 lac, LB, ELB & VLB ➢ Rs. 5.00 lac.

➢ ROI is equal to BPLR

➢ After HL is repaid, OD can be

continued/ renewed provided the sanctioning authority is satisfied about repaying capacity of the borrower and Value of security. ➢ OD facility for personal use

should not be sanctioned to the borrowers, who have availed loan for plot , construction on which is yet to be completed in terms of RBD cir. no. 43 dt.21/08/09

On review, it has been decided to do away with the condition of minimum 2 year of repayment track record of the borrower for considering OD facility up to 5 lac. However this is subject to compliance of all other terms and conditions such as KYC norms, CIBIL database, takeover

guidelines, security norms, maintenance of margin etc.

This facility is outside the purview of “Hub and Spoke“ model in the accounts of existing HL borrowers.

(RBD Cir. No. 64 dt. 19.12.2009) PNB Flexible

Housing Loan Scheme

This is an attractive variant of Housing Loan Scheme offered by the PNB for its customers. Under this scheme, OD facility is made available to the HL borrower. He can deposit his savings and withdraw the same as per his requirement. The features of the scheme are as under:

Eligibil ity

➢ Age of the applicant must be less than 50.

➢ Existing HL borrowers can also apply provided their loan account is regular and no IR irregularity persists. Purpos

e All purposes as per original scheme except Purchase of

Land / Plot.

Extent Term Loan 80% Overdraft 20%

➢ After lapse of 3 years, enhancement in OD will be allowed equal to reduction in Term Loan and thereafter on yearly basis.

➢ After lapse of 5 years, 20% increase in original limit is allowed in the shape of TL/OD for personal needs.

➢ Market Value of Property should be sufficient to cover the margin of 25% ➢ After attaining age of 55

years, OD facility will be reduced on monthly basis so that whole limit and

T/L are adjusted by the end of 65 years.

➢ Maximum OD limit should not exceed 50% of Total limit.

➢ HL can be sanctioned by the branch/hub situated

near the

workplace/posting/reside nce.

➢ Security verification can be done by nearby branch.

➢ Rate of Interest as given

above in the table in Housing Loan scheme (general)

For Overdraft portion, R/I is equal to BPLR