EMPLOYEES HOUSING LOAN-667-666

NF-546 Specimen Card.

NF-523 Application for Housing loan to Employee

NF-482 Certificate Of Loan Papers Obtained.

NF-461 Letter Evidencing Deposite of Title Deed

NF-462 Schedule A & B

NF-967 Certificate of compliance of term and conditions.

NF-803 Letter Evidence Execution of Documents.

NF-760 AOD/security to be obtained in case employee who ceases to be in services of the

bank or is under suspension and no installments are received. If Circle office advises
to obtain letter of revival in lieu of AOD same may be adhered t

Housing loan agreement for Employee on a non judicial stamp paper of requisite
value

Irrevocable Mandate for deduction from the Salary.

Mandate for payment of fire insurance premia

Undertaking letter to maintain NTH after deduction HL installment not less than 25%

Pronote Covering Letter.

Pronote

Undertaking letter cum Authority letter.

Letter of request for disbursment for construction.

Certificate of Inspection.
Execution of LEDTD along with Schedule A & B and title deeds as per LSR.

Eligibility:

• All Confimed Officer Employees

• All Confirmed Workmen Employees who have completed two years of service.

Sanctioning Authority: DM at Circle Office.

Purpose:

• Purchase of a ready built house/ flat.

• Construction of house/ flat.
 • Purchase of site and construction of a house thereon. However, loan for the purpose of
purchase of only site shall not be considered.

Loan Quantum :

Cadre Quantum
Executives(Scale-VI & VII) 75 Lkahs
Executives (Scale IV & V) 60 Lakhs
Officers in Scale I II & III 50 Lakhs
Clerical 30 Lakhs
Sub Staff 20 Lakhs
PTEs
1/3 of the wages 4.67 Lakhs
1/2 of the wages 6 Lakhs
3/4 of the wages 8 Lakhs

Repayment: 30 years or the period upto employee attaining 75 years of the age whichever is lower
principal and interest shall be fixed in 2:1 ratio.

Principal 240 Months

Interest 120 Months

For Repairs and Renovations:

Cadre Quantum
Officers 10 Lakhs
Clerks 7 Lakhs
Subordinates staff 4 Lakhs

Repayment: 10 Years

Principal 84 Months
Interest 36 Months

• Repayment of installement shall commence from the 13 th month or in case left over service
is less than 12 months repayment shall commence immediatly after retirment irrespective of
the completion of the project.
• Repayment for the EHL shall be reckoned condidering the permanant source of income i.e.
Pension ,interest on investments.
• The ritiring employee shall give an undertaking letter to maintain the minimum required
NTH during the pendency of the loan liability.
• If the employee resigns from the service of the Bank,He / She has to clear the outstanding
HL liability before relief from the service of the Bank.
• HL limits / liabilities is permitted to be continued on the same term & conditions of the EHL
for a period of 15 years from the date of Ceasing to be in service of the Bank or ex-
 employee attaning the age of 75 years whichever is earlier.

Net Take Home (NTH): >=25% of monthly gross salary.

Margin : 10% of the Project Cost.

Rate of Interest: 7% Simple.

Security : EMT of House property being financed.

Income: Income* of spouse / major children be taken into account at the time of sanctioning an
EHL to determine the quantum of loan and repayment capacity (NTH), subject to their joining as
co-borrowers and fulfilling the eligibility norms. (*Income includes interest on investments /
deposits, rental income / salary income / professional / business income of self/ spouse/major
children, with adequate proof).

Other Conditions:

• In case of proposals for purchase of site and construction of house there on : 60% of loan
sanctioned for purchase of plot is stipulated and 40% for construction of house irrespective
of cadre.

• The condition of maintenance of margin of 40% on the original project cost while permiting
continuation of EHL of the employees from the date of retirement including VRS has been
waived. (Cir 59/2014).

Additional Housing Loan (AHL) :

Employees who have already availed EHL/AHL previously may avail the balance eligible amount
(i.e., differential between the limit already sanctioned to the employee under EHL and the revised
limits) as AHL (Additional Housing Loan) for the following purposes :
• Repairs/ renovations/ enlargement of the existing unit. However, the quantum ceiling
under this head will be advised separately.
• purchase/ construction of 2nd housing unit
• takeover of institutional liability as per the existing norms
• conversion of Housing Loans availed under Supplemental Housing Loan (SHL) along
with EHL and / or Housing Finance Scheme of the Bank.

Clear outside borrowings from institutional and personal sources taken for the purpose of
completing the house construction or for meeting the differential cost for acquiring subject to the
condition that the employee should have made prior declaration in this regard and proper
documentary proof (complying with any statutory requirements) is submited.

Eligible amount for purchase of plot in case of proposals for purchase of site and construction of
house thereon : 40% of the loan sanctioned for purchse of plot is stipulated if the loan is sanctioned
for purchase of a plot and construction of house thereon irrespective of the cadre ( Both officers and
workmen employees) . provisions are applicable in case of loans sanctioned on or after 30.04.2015.

To permit AHL (Additional Housing Loan) to employees who have availed EHL prior to
22.02.2016 on the same property (i.e. property either in the name of self /spouse/minor children) for
renovation / repairs / additional construction etc. (cir325/2019)
Housing Loan to Retired Empoyees of the Bank:

Eligibility:

• All retired employees who have not availed EHL or Housing Loan from our Bank / or any
other bank during their active service and do not own a house but retired on superannuation.
• Employees who ceased to be in the services of the Bank due to Voluntary Retirement, CRS,
termination, resignation etc., are not eligible.
• At the time of availing the loan under the scheme, the retired employees shall be aged above
60 years and upto 65 years.
• The loan shall be availed in the name of the retired employee and spouse and/or one or more
major children.The property shall be in the name of the retired employee and/or in the name
of the spouse or jointly with one or more major children.
• Under unforeseen circumstances of demise of the retired employee, the joint borrower/ legal
heir shall be given the option to continue or clear the loan. In case legal heir/joint borrower
opts for continuation of Housing Loan, the same may be permitted as per the original
sanction terms or till the notional age of 75 years of the deceased retired employee,
whichever is earlier. All other scheme guidelines including and continuation of the housing
loan liability on the existing terms and conditions the concessional ROI shall continue on
continuation of Housing Loan by legal heir/joint borrower also.(cir601/2019).

Coverage :

• Purchase of a ready built house/ flat.

• Construction of house/ flat.
• Purchase of site and construction of a house thereon. However, loan for the purpose
of purchase of only site shall not be considered.

Further, 40% of the loan sanctioned for purchase of plot is stipulated if the loan is sanctioned for
purchase of a plot and construction of house thereon

Quantum:

Officers (Scale–I and above) : ₹ 30 Lacs

Cerical staff – : ₹ 18 Lacs
Sub Staff – : ₹ 12 Lacs

This is subject to maintenance NTH pension ( After the proposed HL instalment and after providing
for TDS, if any) of 25% or ₹ 5,000/-, whichever is higher.

If earning member viz., son / daughter is joint owner of property / joint borrower of loan, the
income of such joint borrower may be reckoned for the purpose of Net Take Home Pay.

ROI : 8.5 % Simple

Security : EMT of House property being financed.Personal Guarantee of all the legal heirs shall be
available if loan is in the name of the employee exclusively. This may not be insisted if one or more
of the legal heirs are joint borrowers to the loan.

Repayment period : Maximum 15 years including repayment holiday of 1 to 18 months depending

upon the purpose of loan or till the borrower attains age of 75 years, whichever is earlier. Recovery
to be effected through Standing Instructions / PDCs / ECS mandates.
Principal liability is to be paid in 124 monthly instalments and interest liability is to be paid in 56
monthly instalments towards Principal liability .If repayment holiday is permitted, number of
instalments towards principal liability shall be reduced to the extent of permitted repayment holiday.

Processing Charges : Nil

Sanctioning Authority : DGM of Circle office under whose jurisdiction the house property is
situated.

Documents Required:

• Aadhar Card

• Pan Card

• 2Photos

• Salary Certificate of 6 Months

Fire Insurance: The House property acquired under Bank Housing Loan the scheme should be
insured by the employee against the risk of fire for its full value at his cost in the name of Bank and
the employee. The policy should be lodge with branch where employee availed the HL.

Supplementary Housing Loan:

• To meet the additinal cost of construction of house or flat over and above the quantum of
housing loan sanctioned under the EHL scheme,
• To reay the outstanding liabilities availed by the employee from any institutional sources
such as housing finance companies, Housing Board, Co-operative Housing socities
and commercial Banks subject to condition that the employee should have made prior
declaration in this regard and proper documentary proof has been submitted.

Repayment: 30 Years or Residual service whichever is earlier.

NTH: Not less than 40% of Gross salary.

Margin : NIL.

Quantum of Loan:

Executives VII to V 10 Lakhs

Executives IV to II 7.5 Lakhs
Officer I 4 Lakhs
Clerks 3 Lakhs
Sub-staff 2 Lakhs

Prepared By
Santosh (109350)