Purpose

• For repairs, alterations and additions to existing houses/flats.
• For construction on plots of land already owned/purchase of ready-built houses/flats.
• For purchase of plot of land for construction of house thereon provided.
• That the borrower gives an undertaking to construct house thereon within.
• Two/three years from the date of purchase of land or if it is purchased from a Development authority, within two years from the date of receipt of possession of the plot, as the case may be
• For takeover of housing loans from other banks.

Eligibility

• Housing loans will be given to the permanent employee members of the Postal Department.
• Applicant should be in the age group of 18-55 years to avail of adequate repayment period.
• The property must be in the name of the borrower. No joint owner will be allowed other than the spouse of the borrower.
• In case of salaried persons they should have minimum 2 years confirmed service with net take home salary of not less than Rs.10,000/- (net of all deductions excluding the EMI of the proposed loan).
• Members can avail this facility once in their service.

Maximum amount of loan

• Maximum of Rs 50 lakh or 100 times of the basic pay plus dearness allowance whichever is lower
• Further, EMI of the loan applied together with the existing EMIs, if any, should not be more than 50% of the net take home salary of the borrower.

Period of Loan

Maximum period of the loan will be 20 years / remaining period of service of the member.

Margin

The borrower will have to bring minimum 25% margin money and will have to show the source of fund for the same such as passbook of his bank account. If he arranges margin money by taking loans from his friends/ relatives etc., he will have to submit an undertaking from such persons that they will not ask for repayment of their money till the bank’s dues are not cleared fully.

Moratorium

Moratorium period will be till the completion of construction or receipt of possession in case of ready built house /flat or maximum 18 months from the date of disbursement of first installment of the loan whichever is earlier. However, it will be at the option of the borrower within the aforesaid limits.

Assessment of Eligible Amount of loan

Quantum of permissible amount of bank finance will depend upon the cost of construction / purchase price of the house/flat, margin money brought in by the borrower, rate of interest charged by the bank, period of the remaining service of the borrower and his repaying capacity. Repaying capacity of the borrower will be assessed by taking into account the net income of the borrower and his liability towards other loans, if any.

Rate of Interest

As decided by the bank’s board from time to time.

Security

Primary Security - Equitable or Registered mortgage of the property financed in addition to the Departmental undertaking. Property financed will have to be insured for fire and other hazards at the cost of the borrower during the tenure of the loan;

Guarantor

Personal guarantee of at least two more members of the bank

Mode of Repayment

The loan together with interest will be recovered in equated monthly installments from the salary of the borrower as usual. In case of retirement / resignation before repayment of the loan along with interest accrued entire outstanding will be recovered from his/her superannuation benefits.

Share Linking

2.50% of housing loan sanctioned amount.

Foreclosure Charges

As per the RBI’s guidelines from time to time. However, if the loan is taken over by some other bank, one time penalty of 2% will be charged on the loan amount outstanding on the date of take over.

Insurance

The property financed will mandatory insured with bank’s clause during the currency of the loan. Insurance will be done by bank itself by debit to the loan account of the borrower and will be renewed on due date. Insurance will be done for total cost price of the property.

Loan for purchase of plot

At the time of purchasing plot Land should be non-agricultural land, non-commercial and non-society land. For purchasing of plot for construction of house thereon the cost of land should not exceed 60% of the total estimated cost of the project or Rs.50.00 lakh whichever is lower. In such cases construction should be completed within two/three years from the date of purchase or in case of acquisition of the plot from a Development Authority, within two years from the date of receipt of possession of the plot.

If the construction is not completed within the stipulated period or the extended period, if any, allowed by the bank, the loan will be converted into a Mortgage loan and would be repaid in a period of 5 years thereafter. Total repayment period would not exceed 8 years. Interest may also be charged at enhanced rate as decided by the Board from time to time.

Take over of loans from other banks

The borrower would have to submit statement of the loan account from the transfer bank apart from other necessary information/document as per the scheme of the bank. However, stamp duty applicable for creation of mortgage will be borne by our own bank. The repayment period would normally not exceed the residual repayment period of the transfer or bank. However, in deserving cases it may be increased at the discretion of the bank within the overall limit of 20 years fixed by RBI.

Loans for repairs/renovation:

Loans for repairs/renovations will be given up to Rs.10 lakh in metropolitan cities and Rs.6.00 lakh in other cities. The borrowers will have to submit estimate from a qualified engineer/architect. Loan will be given up to 90% of the estimated cost. Such loans will be classified under priority.

As regards security, the borrower will have to deposit the title deed of the house with the bank.