Purpose
Construction of house, acquisition of land & construction of house, repairs / renovation / remodeling / extension of house, reimbursement of debt incurred for construction / purchase / furnishing / beautification / purchase of flat / villa / house plots / take over of housing loans / supplementary housing loan to employees of well-run companies / purchase of house plot for subsequent construction of house etc
Loan Amount
Maximum Rs 300 Lakhs
For repairs / renovation / extension - maximum of Rs 10 Lakhs
Eligibility
End of loan tenure shall not exceed the retirement age, for salaried people (maximum of 65 years). For others, age of the borrower/ spouse should not exceed 65 years at the end of loan tenure.
For NRIs:-
Age of the borrower should not exceed 55 years at the end of loan tenure (if main income source considered is that of resident spouse, loan tenure may go beyond 55) Should be holding Indian passport Working / doing business for one year abroad Sufficient monthly income subject to minimum of Rs 20000 Deduction towards loan shall not exceed 50 % of net salary
Quantum of finance
Project cost minus margin subject to repayment capacity
Project cost can also include registration fee / stamp duty and construction cost of compound wall / gate, permanent fixtures / kitchen cabinet etc subject to a maximum of 10% of loan amount.
Margin
For purchase of Land & Construction of house or for purchase of Land with Building - 25% For Construction of house or purchase flat / flat under Construction - 25 % Loan on reimbursement basis 25% Purchase of land for subsequent construction - 50% of land value or 60% of the project cost (land + house) whichever is higher
Period
Residents - Maximum 20 years. NRIs - Maximum 15 years.
Cushion period
For ready built house 3 months maximum. Other cases 3 months from last disbursement - maximum 12 months Purchase of land for subsequent construction - 24 months to start construction and another 12 months for completion of construction (periodical interest shall be serviced whenever applied). Equal monthly installments shall start by the 37th month of availing the loan.
Rates & Interest
See Rates & Interest Page
Repayment
Equal monthly installments (EMI) / Graded installments (for NRIs, EMI only)
Co-obligant
Spouse shall join as co-obligant. If income of major son / daughter is also considered, they shall also join as co-obligants. Co-owner of property, if any shall also join as co-obligant.
Security
Primary - Mortgage of the property financed including building. Ready-built house / flat - 100 % interim security till primary security is mortgaged Construction of flat- If the flat is in a project which is not approved by the bank - 100 % interim security till primary security is mortgaged
Other conditions
Outright purchase with building Value of building shall be at least 60 % of the loan amount. Age of building shall not exceed 10 years. Reimbursement of expenses Loan can be considered within 12 months of construction / purchase of house.
Now more reasons for opting Federal Housing loan - (Take me there).
