Home Loan Scheme for EWS / LIG / MIG Individuals: Urban Areas

• To purchase / construct a new house / flat, to purchase an existing house / flat or extend an existing house, Repair / Renovate an existing house / flat.

• Individuals with a source of income either having minimal or no documented income or income proof but have digital footprints of banking and other economic activities with annual income up to Rs. 9.00 lakhs having no home or one Home.
• Income of up to 4 members of the household can be combined to calculate eligibility.
• Total annual income of applicant(s) (maximum 4) should not exceed Rs. 9.00 lakhs.

Eligible customers in metro / urban areas includes :

• Minimum age at the time of loan application: 21 years
• Maximum age at the time of loan application: 60 Years
• Maximum age at loan maturity (of youngest borrower contributing to repayment): 70 years
   

• The tenure of the loan including moratorium could extend upto a maximum of 25 years.

The moratorium period shall be computed from date of 1st disbursement with below noted ceiling:

Note: Interest to be serviced during moratorium on actual basis.

• Principle along with interest shall be repaid in Equated Monthly Instalments (EMIs) after moratorium which shall be re-fixed with every increase/decrease in interest rate during the tenor of loan. The repayment period and EMIs calculated for repayment shall be decided on the merits of each case on a realistic basis after taking into account the repaying capacity of the borrower. 
• In order to keep the EMI unchanged due to upward revision in interest rate, borrower may be given option to extend loan tenor/ repayment period by a maximum of 5 years.
• At the time of sanction, the operative levels shall clearly communicate to the borrowers the possible impact of change in benchmark interest rate on the loan which may lead to changes in EMI and/or tenor or both. Subsequently, any increase in the EMI/tenor or both on account of increase in interest rate benchmark shall be immediately communicated to the borrowers through appropriate medium.

• For construction purpose, the estimate of construction + Value of land shall form the project cost. 
• In case of loan for purchase of ready built house/flat, cost as per agreement to sell or valuation report, whichever less, shall form the project cost.
• In case of repair/renovation, market value of property as per valuation report+ estimate shall form the project cost.
   

• For loans upto Rs 30.00 Lakhs: Minimum 10% of cost/ estimate accepted for financing, thereby ensuring a maximum LTV of 90%.
• For Loans above Rs 30.00 Lakhs: Minimum 20% of cost/ estimate accepted for financing, thereby ensuring a maximum LTV of 80%.
  .

• For Construction/ purchase of house/flat:
  Metro Centres: Rs 35.00 Lakhs, subject to Max Project Cost of Rs. 45.00 Lakhs
  Other Centres : Rs 25.00 Lakhs, subject to Max Project Cost of Rs. 30.00 Lakhs
• For Repair and Renovation :
  Metro Centres : Rs. 10.00 Lakhs
  Other Centres : Rs. 6.00 Lakhs
   

1. Loans with sanction limit upto ₹ 20.00 lakhs for purchase/construction of 1st House only covered. The guarantee coverage under the Scheme shall be provided by the Trust up to a maximum of 25 years or the tenure of the housing loan, whichever is earlier.
2. Carpet area upto 60 Sq. Mtr. (645.83 Sq. Ft.) only covered.
3. Guarantee cover 70% of the amount in default.
4. "Amount in Default" means the principal and interest amount outstanding in the housing loan account of the borrower, as on the date of the account becoming Non-Performing Asset (NPA), or the date of lodgement of claim application whichever is lower, or such other amount as may be specified by the Trust.
5. Guarantee available for EWS and LIG (annual income upto ₹ 6.00 Lakhs) borrowers only.
6. A one-time guarantee fee, calculated at a specific rate on the total sanctioned loan amount (whether disbursed or not), as defined in the below table, is payable to the Trust for the eligible loans by the end of the next consecutive quarter following the quarter in which the first release was made by the MLI to the beneficiary.

The guarantee fee shall be as under:

7. Bank shall not charge any amount in lieu of the ‘Guarantee Fee’ from the borrower/beneficiary at any stage.
8. Moreover, there will not be any other charges including yearly servicing fee from the borrower/beneficiary under this Scheme.
9. The guarantee fee once paid by MLI to Trust is non-refundable, except in case of its excess remittance.
10. The payment of guarantee fee and other guarantee cover related activities shall be handled by GSGD.

• Processing Fee: NIL
  Legal and Valuation fee (Out of Pocket Expenses) are to be recovered on actual basis, to be capped at Rs. 5,000.00 Plus GST.
• INSPECTION CHARGES: As per Service charges schedule.
• PRE PAYMENT CHARGE: NIL