Loans shall be sanctioned to the A Class members and D class members of the bank, and the applicant should own the land or plot on which the construction is proposed.
Application of Loan
Loan will be available for:
* Extension or renovation of existing house
Limit of Assistance
The loan amount for construction/outright purchase/remodeling and expansion of houses shall be fixed as a maximum of ₹50 lakhs.
Disbursement
* For additions and improvements: Loan will be released.The loan amount will be sanctioned only on the basis of valuation report.The sanctioned amount will be 1/3 rd of the valuation report.
Repayment / Tenure of Loan
The loan shall be repaid in diminishing method of interest calculation over a maximum period of 10 years and 5 years.
Borrowers may remit more than one installment or a lump sum at any time.
Interest RateCollateral Security
Loan will be granted against the mortgage of landed property either by equitable mortgage or registration. The building must be insured at the borrower’s cost and the policy should be assigned in favor of the bank.
Share Linking
Share linking will be 2% of the sanctioned loan amount.
Required Documents
- Title Deeds
- Tax Receipts of the property & buildings (if any)
- 20-Year Encumbrance Certificate
- Plan & Estimate of the building (certified by a competent authority)
- Possession Certificate
- Location Certificate and Sketch from village office
- Affidavit cum Undertaking not to violate the sanctioned plan
- Authority to Sanction the Loan
The Board of Directors shall have the authority to approve and sanction the house repaire loan