housing finance scheme for public – "overdraft facility to housing loan borrowers for personal needs"
(Frequently Asked Questions)
Who is Eligible for Overdraft limit under the scheme ?
A person who is availing or intends to avail housing loan facility for the purpose of purchase/ construction/ repair/ renovation is eligible to avail OD limit under the scheme. Take over cases are also eligible under the scheme.
person has availed loan for purchase of plot, is he eligible for OD limit ?
No, the Overdraft Facility for personal use is not sanctioned to the borrowers, who have availed / is availing loan for purchase of plot, construction on which is yet to be completed.
What if a person has adjusted his housing loan recently and now wants to avail the OD facility ?
In such a case the person is not eligible for the OD facility.
What is the maximum amount which one can get as Overdraft under your above scheme ?
Minimum limit is Rs.50000/- and maximum limit is Rs.25.00 lac. However, sanction of Overdraft limit above Rs.5.00 lac is restricted to maximum 25% of the Housing Loan amount sanctioned, e.g. irrespective of Housing loan sanctioned upto Rs.20.00 lac maximum OD limit of Rs.5.00 lac can be sanctioned subject to that MARGIN of 25% is always maintained and repaying capacity. For loan above Rs.20.00 lac OD limit will be restricted to 25% of Housing loan sanctioned e.g. in a Housing loan sanctioned for Rs.30.00 lac maximum OD limit that can be sanctioned shall be restricted to Rs.7.50 Lac which again shall be subject to that MARGIN of 25% is always maintained and repaying capacity.
For what purpose the said limit can be used. Whether it is mandatory to use for Housing purpose only or one can purchase consumer durables, care etc. ?
The OD limit is for personal use without subject to any end use verification and it is not mandatory to use the same for Housing purpose.
How much Ione has to contribute from his own sources to get Overdraft limit under the scheme sanctioned and does one need to furnish additional security ?
NIL. Only extension of charge/Creation of charge on the existing Mortgaged Immovable Property/IP to be Mortgaged shall be done.
However, extent of OD Limit/loan shall, however, is subject to current realizable value of the housing property, such that 25% margin is always maintained (i.e. LTV ratio of 75%), viz. the overdraft limit proposed to be sanctioned and the current outstanding in the Housing Loan a/c /Housing loan amount sanctioned shall be restricted to an amount so that 25% margin is always maintained, subject to the maximum ceiling as prescribed above and repaying capacity.
How the eligibility is calculated ?
Overdraft facility is allowed on the basis of repaying capacity which should be such that take home salary should not be less than 40% of net salary after servicing of interest, in case of salaried borrowers plus all the EMIs including the EMI on Housing Loan. In case of other than salaried borrowers, income should be sufficient to service the interest component plus all the EMIs including the EMI on Housing Loan.
Can one apply jointly with spouse? Will both salaries/ Income be taken into consideration for calculating the repaying capacity ?
Income of co-borrowers/joint-borrowers/likely rental income/rental income taken into account while ascertaining the repaying capacity at the time of sanctioning of Housing Loan is also considered to ensure that borrower has the capacity to service the interest component on the overdraft facility.
What is the ROI at present ?
What are the terms & conditions of repayment ?
Borrowers to ensure monthly servicing of interest component on the overdraft facility sanctioned. In case the interest is not serviced consecutively for two months, Bank may consider recalling the loan.
How long does it take to get my OD loan sanctioned ?
Your loan can get it sanctioned in 3 to 7 working days after completion of all the desired formalities by you.
Will the OD be allowed to continue after closure of Housing loan account ?
Yes, the overdraft facility is allowed to continue /renewed even after adjustment of Housing Loan a/c in full.
What is the processing fee charged by the bank ?
Processing Fee is NIL . However, Documentation Charges of - Rs.450/- (Excluding of S.T.) are required to be paid
What other charges have to be paid ?
All other out of pocket charges viz. CIBIL, Advocate fee, Valuation charges, Central Registry etc., if applicable.
What are the documents required at the time of applying for OD limit ?
If a person is applying for a fresh loan, documents required for applying for Housing loan are sufficient to cover the OD facility also. However, in case of existing housing loan accounts, a simple request letter for sanction of the Overdraft limit and acceptance of offer letter containing terms and conditions is sufficient.