Loan Against Mortgage of Immovable Property

Purpose For Business & Personal needs:

Personal Needs: Employees of Central/ State Govt./ Schools/ Colleges/ Public Sector Undertakings (PSUs)/ Reputed Corporates and Other Income Tax Assesses, who are below the age of 70 years.

Business Enterprise : Existing customers with a satisfactory track record of three years (cash profits during last three years and net profit in the immediately preceding year)

Income Criteria

For salaried and other income tax assesses: Minimum net monthly salary of Rs.25,000/- (salaried class) or minimum net annual income of Rs.3,00,000/- (for other income tax assesses).

For Business Enterprises: Minimum Net annual income/ Net Profit of Rs.3,00,000/- and above.

Quantum of Finance

For Personal needs: Rs 1.00 lac to Rs 25.00 lac.

For Business needs : Rs. 5.00 lac to Rs. 500.00 lac.

Assessment of limit

The assessment of limit will be carried out keeping in view three parameters as under and limit shall be fixed least of the followings:

  • Maximum 75% of the realizable value of the property
  • Maximum three times of Annual Gross Income /Gross Profit, whichever is lower (In case of Term Loan).
  • Maximum Four times of Annual Gross Income /Gross Profit, whichever is lower (In case of overdraft).

Maximum permissible deduction of Net Monthly Salary (NMS)/ Annual Net Profit after Tax (ANPAT) should be as under:

Parameters Max. Permissible Deduction of NMS/I/ANPAT
For salaried/ other income tax assessees/ business enterprises
NMS/I/ up to Rs. 0.50 lac Or ANPAT up to Rs. 5.00 lacs 50%
NMS/I/ above Rs. 0.50 lac up to Rs. 1.25 lac Or ANPAT above Rs. 5 lac up to Rs. 15.00 lac 60%
NMS/I above Rs. 1.25 lac Or ANPAT above Rs. 15.00 lac 70%

NMS/I – It is equal to {Gross Salary/ Income less Statutory Deductions such as Income Tax, Professional Tax, Other Tax Liabilities, PF etc.}

ANPAT - Annual Net Profit after Tax (ANPAT) will be arrived at after adding back depreciation and actual interest booked on all type of loans (Term loan, CC, OD etc.) excluding unsecured loans taken from relatives, friends etc., as per verifiable source such as Profit & Loss (P&L)/ Income & Expenditure/ Payment & Receipt etc., of the borrower(s).

All deductions for this purpose will include proposed mortgage loan installment, existing deductions (except statutory deductions), loan installments, actual interest on term loans, notional interest on full sanctioned limit of CC, OD etc. and should not exceed the prescribed ceiling.

Security Equitable Mortgage of the unencumbered residential House/Flat or commercial or industrial property (in the shape of building/ Industrial Shed) self occupied or vacant
Repayment (Maximum)

Loan amount together with interest to be repaid:

For Personal Needs: in maximum 120 Equated monthly instalments (EMI) OR upto the age of 70 , whichever is earlier.

For Business Needs:

a. For Traders (Retail & Wholesale) - in 144 EMIs.

b. Enterprises in Service Sector, Professional & Self Employed, Manufacturing concerns, Education Institutions - in 180 EMIs.

Note: Repayment period is linked with Purpose/ Activity of the borrower.

(applicable in case of Individual/ Sole Proprietorship)

In case of facility sanctioned in shape of Overdraft facility allowed on Monthly Reducing Drawing Power basis, Drawing Power be reduced every month to the extent of the principal component of the EMI calculated on full sanctioned limit by system itself

Prepayment charges NIL
Rate of Interest Click Here
Processing Charges/ Upfront fee Click Here
Documentation Charges Click Here

Above are only salient features of the scheme. For details please contact nearest branch

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