| Sl No | Scheme Norms | Details | ||||||||||
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| 1 | Purpose |
The Loan may be considered for medical emergencies, education, repair/renovation of buildings, household functions/festivals, purchase of another property (except for property business), family commitments, and financial obligations such as family settlements, repayment of unsecured loans obtained from friends and family, etc. (An undertaking that the proceeds shall not be utilized for the purposes which are prohibited under FEMA/Any other Act/Law such as Investment in Agriculture Land/Plantation etc. shall be obtained) |
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| 2 | Loan Amount |
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| 3 | Security | The loan may be considered for Self-occupied as well as Let out Properties. The Properties may be Residential, Commercial, or Vacant Plot. In case the property is let out, an undertaking/NOC from the Tenant to be made available by the borrower. In case of change in tenancy, fresh NOC from the new tenant to be made available by the owner/borrower. Format is attached as Annexure-II. Undertaking letter from tenant to be notarized and along with the same KYC record of the Tenant shall be obtained and authenticity of the undertaking shall be cross-checked while visiting the property. If the property is a vacant plot, it should have proper demarcation, access, boundaries, and should be easily identifiable. Panel Valuer shall certify this fact in the Valuation Report. Title of the Plot should be clear. Loan can be sanctioned to joint owners of the property also, even if they are not close relatives of each other. However, THP Norms shall be complied on an individual basis. | ||||||||||
| 4 | Age/Period of Existence | While considering the proposal, age of borrower shall be Minimum 20 Years and Maximum 60 Years. Repayment can be considered up to the age of 70 years of the borrower. If an applicant is included only due to ownership of the property and without considering his/her income for repayment, Entry and Exit age norms for the said borrower need not apply. If age of such borrower shall exceed 75 years at the time of closure of loan, all his/her legal heirs join as co-borrower or guarantor. | ||||||||||
| 5 | Income Norms |
Minimum Income: Minimum Gross Monthly Salary of Rs. 50000/- for Salaried and Minimum annual net income of Rs. 500000/- after deduction of tax, existing and proposed deduction for LAP in case of Self Employed/Businessman/Professional. Salaried: Should be having a regular Job Abroad in an Indian/Foreign/Company/Organization/Govt. Department holding a valid Job Contract/Work Permit for minimum past 2 years. Self Employed/Businessman/Professional: Should be in the same Business/Profession/Line of Activity for the past 2 years. Documents Required (For Income Proof): For Salaried Employees: - Employment/Contract/Appointment Letter/Offer Letter or any other Document/Agreement showing current terms of employment - Last 6 Months Salary Slips/Certificate - Last 12 Months Bank Account Statement showing salary credit - Duly acknowledged copy of last 2 years Income Tax Returns (Except for Middle Eastern Countries/wherever no individual tax is applicable) - A copy of ID card issued by Employer - Valid Work Permit For Non-Salaried/Businessman/Professionals: - Last 2 Years Audited/CA Certified Balance Sheet and P&L Accounts - Duly acknowledged copy of last 2 years Income Tax Returns (Except for Middle Eastern Countries/wherever no individual tax is applicable) - Last 12 Months Bank Statement in the name of Individual and Business - Valid Work Permit - Address/Registration Certificate/Tax Registration Proof of Business. Other conditions: - Copy of VISA Passport is required - Verification of the authenticity of employment particulars needs to be done as best possible by taking up with the Employer through email/post/verification of website of the company (employer) wherever possible. - Verification of Income Tax Returns also may be done wherever possible through web etc. - Verification of Balance sheet and P&L may be done by taking up with the concerned auditor through email etc wherever possible. - Verification of Bank Account statements may be done if possible it may be generated from internet banking facility in front of Bank Official in case the borrower is on visit to India. Source of Repayment for NRIs: The repayment should be out of fresh foreign inward remittance or by debit to NRE/NRO account of the borrower in India. The repayment of loan instalment/interest and other charges can also be made by close relatives of the NRI Borrower in India. Branches should ensure that the payment made by the relative is through his /her bank account and credited directly to the borrower’s loan account. For this purpose, close relatives will include: Spouse, Father, Mother, Son, Brother, Sister, Step-Father, Step-Mother, Step-Son, Step-Brother, and Step-Sister. Further it includes Son’s wife, Daughter, and Daughter’s Husband. |
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| 6 | Take Home Pay Norms | Take Home Pay norms to be complied with at 50%. | ||||||||||
| 7 | Holiday Period and Tenure |
Holiday Period: Nil Minimum Tenure shall be of 12 Months Maximum Tenure shall be as under:
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| 8 | Type of Loan |
Term Loan: can be considered for all the eligible borrowers LAP CC: shall be considered only for salaried borrowers |
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| 9 | Mortgage of Property | Equitable Mortgage to be created and Registration of Memorandum to be done wherever applicable. | ||||||||||
| 10 | Minimum CIBIL Score | Minimum CIBIL Score shall be 600. |
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