Home Loan Scheme for Economically Weaker Section (EWS), Low Income Group (LIG) and Middle Income Group (MIG) individuals: Urban Areas

Eligible customers in metro/urban areas includes:

Ø  Small traders, shopkeepers,   Skilled and Semi-Skilled workers/ artisans in unorganized sector, other professional & self- employed customers.

Ø  Members of SHGs, beneficiaries of PM SVANidhi, PM Vishwakarma, Mudra, Stand Up India

Ø  All beneficiary groups under Pradhan Mantri Awas Yojana (PMAY) – U 2.0.

Ø  Salaried customers who have put in a minimum period of confirmed service/ experience of 2 years (Including previous employment / experience and confirmed in the present employment).

Ø  Credit worthiness to be ascertained as per Bank’s extant guidelines.

Ø  A satisfactorily maintained running Bank Account/ UPI transaction history for a minimum period of 24 months.

Ø  If Salaried and receiving salary through SB account, the average annual salary credit will be taken as annual income (Average for last 12 months). One off credits, which are not regular in nature, to be removed from credit summation.

Ø  The employment/work/office verification will be continued as per the existing due diligence guidelines.

Ø  Analysis of the account statement where the monthly salary is being credited will be done to ascertain the salary credit transaction, amount and its regularity / consistency.

II) For Self-Employed Customers-

Ø  In case of self-employed customers, if the customer is assessed under GST, then 8% of their Sales Turn over declared in the GST returns will be considered as Annual Income.

Ø  If the customer is not assessed under GST, then following parameters will be analysed to decide the annual income of the customer –

a)      Self-employed individuals maintaining Account (Current / CC / SB in the name of the Firm or in his personal name) but NOT Linked to UPI/POS, 8% of annual credit summation will be taken as Annual Income (Average for last 12 months)

Or

b) Self-employed with UPI/POS linked to SB/CA/CC in the name of the Firm or in his personal name through which the business transactions are routed, 20% of total credit summation of digital transactions will be taken as Annual income (Average for last 12 months)

[Income considered for eligibility will be higher of (a) or (b) above]

(One off credits, which are not regular in nature and non-indicative of income from business, may be removed from credit summation).

Ø  Thus, the statement of the account, where the business transactions or professional fees are being credited will be analysed to ascertain the nature of transaction and assessing annual income as stated above.

Ø  The existing guidelines for due diligence of work / office verification will also continue.

Ø  Maximum Age – 60 years

For Repair & Renovation – Estimate by approved engineer / architect will be required.

a)       Permissible loan amount as per EMI/NMI ratio.

(EMI includes all existing EMI and EMI for proposed loan. NMI or Net Monthly Income will be the average monthly income calculated based on the Net Annual Income derived as above).

b)       Permissible loan amount as per LTV ratio,

c)        Loan amount applied,

d)        Maximum permissible loan amount under the scheme.

1.  For Home Loan:

Metro Centres: ₹35.00 Lakhs, subject to Max Project Cost of ₹45.00 Lakhs

Urban Centres: ₹25.00 Lakhs, subject to Max Project Cost of ₹30.00 Lakhs

2. For Repair and Renovation:

Metro Centres: ₹10.00 Lakhs

Urban Centres: ₹6.00 Lakhs

(Maximum Loan limit as per PSL criteria)

LTV Ratio

Ø  70% of the loan amount in default for Home loans not exceeding ₹20.00 lacs.

Ø  Home loan granted to borrowers under EWS (annual household income up to ₹3.00 lacs) and LIG category (annual household income up to ₹6.00 lacs)

Ø  Property in Urban areas as defined under PMAY – U scheme.

Ø  Houses with Carpet Area up to 60 sq. mtr.

Ø  Purchase / construction for first house only and not for the house in different city or for subsequent houses or improvement of the existing house.

Ø  Builder Flats-Construction linked but not more than 36 months.

Ø  Purchase of ready to move house/Flat- No moratorium.

(However interest to be serviced during the moratorium period)

Ø  Legal and Valuation fee (Out of Pocket Expenses) are to be recovered on actual basis. However, it is capped at ₹5,000/- plus GST.

(Funding the premium of property insurance as a part of loan within LTV norms is allowed)