Purpose
- Purchase of residential accommodation — flats, bungalows, row houses, etc.
- Construction of a flat, house, bungalow, etc.
- Addition or alteration to existing residential accommodation.
Eligibility
Individuals, self-employed persons, businessmen and professionals who wish to purchase a house or flat and have regular income to repay the loan.
Disbursement of Loan Amount
Disbursed directly to the seller or builder. For a flat or house under construction from a reputed builder, the amount is disbursed in stages based on construction progress.
Loan Amount
Depends on the applicant's repaying capacity and the bank's exposure limits.
Margin
30% (on agreement value + stamp duty + registration fees + amenities in the flat, if registered).
Guarantee
One or two solvent third-party guarantors, depending on the loan amount.
Security
| Prime | The flat or house being purchased. |
| Collateral | Not insisted upon. |
| Guarantors | No guarantor needed if co-owners are co-applicants. If a spouse or parent is not a co-owner, they must stand as guarantor regardless of income — "parent" means both father and mother, and in the father's absence, the mother alone should be the guarantor (or vice versa). |
Period of Loan
Repayment period ranges from 60 to 180 months.
Rate of Interest
- Calculated on daily products.
- Charged on a monthly basis.
- Linked to the Prime Lending Rate (PLR).