➢  For purchase of ready-built house/ flat by Public Limited Company/ Pvt. Ltd. Company/ Partnership Firms/ LLP for their employees/ directors/ promoters/ partners. The house/ flat can also be used as guest house to be used for their own employee or executive.

➢  Takeover of existing loans from other banks/Fls. The Loan with existing lender should be for purchase/construction of the residential property by Public Limited Company/ Pvt. Ltd. Company/ Partnership Firms/ LLPs firms for their employees/ directors/ promoters/partners. Under construction properties are not permitted for takeover under the scheme.

➢  Purchase of apartments/ units/ houses from Associates/ Sister/ Group concerns is not permitted.

➢  The product is available for acquiring residential property within municipal area at Metro and Urban Centers only.

➢  The Property to be acquired will be in the name of company / firm.

➢  Company / Firm / LLP engaged in Real Estate Business/ NBFC will not be eligible.

➢  Loan for purchase of Plot is not permitted. However, if the proposal pertains to purchase of plot along with construction of residential units thereof, loan may be extended in such cases subject to the construction being taken up after the purchase of plot, within the prescribed time period.

➢  The properties acquired should not be put to commercial use.

➢  CIBIL score of promoter director/s should be 700 or above.

Target Group

1. Type of applicants

• Public Limited Company
• Pvt. Ltd. Company
• Partnership Firms
• LLPs

2. The CIBIL of the Company/firm should be satisfactory

3. Subsidiary of Corporate Entities will also be eligible for availing loan under the scheme provided

• The Parent Company fulfils all the mentioned eligibility norms.
• The parent company agrees to stand as a guarantor for the housing loan.
• However, eligibility for the loan shall be determined based on the net cash accrual of the last two years of Parent Company.
• The estimated cash flow of the Subsidiaries is sufficient to repay the EMIs, or the Parent Company gives an undertaking to service the Home Loan in addition to guaranteeing the loan.

4. Company /Firm should be registered in India.

Income Norms

➢  The income of the Firms and Companies etc. should be steady and the entities should be in cash profit for the last two years.

➢  The Loan will be assessed based on the average of last 2 years Net Profit as per ITR which should have been filed without break year on year basis.

➢  For eligibility and THP norms, Depreciation may be added to Net Profit subject to following condition,

• Depreciation to be considered as per Audited Balance sheet.

• Average depreciation or last year depreciation, whichever is lower, to be considered, Average amount of depreciation should not exceed 50% of average Net Profit of last two years.

➢  However, It should be ensured that Firm/ Company/ Entity is having Positive Operating Cashflows alongside net profits for the last 2 years.

➢  DSCR shall be calculated for the entire period of repayment to assess the repayment capacity throughout the tenor of loan.

➢  DSCR is to ensure that the borrower maintains adequate repayment capacity throughout the loan tenure.

➢  However, eligibility for the loan shall be determined based on the net cash accrual of the last two years.

➢  Projection of net profit should be in line with past performance. Any vide variation may be accepted only based on specific justifications supported by documentary evidence to this effect.

➢  Copy of ITRs with computation sheet, Audited P&L Account, Balance Sheet etc.to be obtained.

Type of Loan

Term Loan

Quantum of Loan

Minimum: 1 Crore

Maximum: No ceiling on maximum loan under the scheme.

Takeover

Yes takeover is Applicable

Security

Equitable Mortgage to be created for House Property. Registration of Memorandum of Deposit of Title Deed to be done wherever applicable.

Legal Opinion

Legal Opinion to be obtained from our Bank's Panel Lawyer as per extant guidelines.

Valuation of property

Valuation of property must be obtained from a Panel Valuer in accordance with the Bank's valuation policy.

Moratorium Period

Purchase of Plot & Construction of House thereon: 

For Purchase of Plot and or Construction of House, Maximum Moratorium Period is allowed for 18 Months from the date of disbursement of first instalment of Loan or completion of construction whichever is earlier.

Purchase of Flat which is under construction: 

Branch can consider Moratorium up to 36 months and RLCC can consider Moratorium up to 48 Months depending upon schedule of construction.

For purchase of old house/old flat: Moratorium period of 3 months may be allowed.

However, interest should be serviced during the moratorium period.

Repayment

15 years maximum including moratorium period

Interiors/

furnishing of

residence as part of the project cost

10% of the cost of house/ flat will be permitted towards interior/ furnishing viz. Wardrobe, modular kitchen, flooring, fixtures, fitting, etc. subject to maximum restriction of LTV ratio at 75% for entire amount.

LTV Norms/Margin

Maximum LTV Ratio should be 75%.

Processing fees

0.50% of Limit sanctioned amount plus GST (If Applicable).

Documentation charges

As Applicable

Prepayment/

Pre-Closure

Prepayment/ Pre‑closure charges shall be applicable only in the case of loan takeover from our bank. Accordingly, a charge of 2% shall be levied on the amount prepaid.

Penal Charge

2% over the prescribed rate should invariably be charged for the amount of default / delay in payment of instalments for the overdue period.

Interest Rates

Click to check latest Rate of interest

Top-Up

Top-up loans will not be considered under this scheme

Insurance

Property should be insured for the full value of its superstructure for applicable risks.

Tripartite Agreement

To be executed and the guidelines as applicable to regular housing loans to be complied with

Personal Guarantee

Personal Guarantee is required In case of Partnership Firm/LLP/ Corporate Borrowers

Rating

INTREST RATE

ROI

IOB 1 or AAA

RLLR + 0.65

8.75

IOB 2 or AA

RLLR + 0.85

8.95

IOB 3 or A

RLLR + 1.05

9.15

IOB 4 or BBB

RLLR + 1.35

9.45

IOB 5

RLLR + 1.65

9.75

IOB 6 & Below and Below BBB

Reject