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IB HOME ADVANTAGE

IB HOME ADVANTAGE

Eligibility
  • Resident individuals having steady source of income –Salaried Class, Businessman, Professional & Self-employed people, and Pensioners having adequate income to service the loan can also avail Home loan on selective basis
  • Our Bank staff as well as Spouse of the Staff can also avail home loan. In such cases  the Guarantee of  Spouse/Staff is compulsory
Age Resident   Individuals

Minimum entry age is 18 years and maximum exit age is 70 years

Non Residents

Minimum Entry Age -21 years and maximum Exit age 60 years

CIC Report Any two of the four (CIBIL / EXPERIAN / CRIF HIGHMARK / EQUIFAX ) report to be obtained and verified to ascertain the past credit history of the Applicant.
Purpose Home Loans can be considered

  • to purchase / construct a new house / flat
  • to purchase house site and construction house thereon
  • to purchase an existing house / flat
  • to extend an existing house/ additional construction
  • to repair / renovate an existing house / flat to take over Home Loans from other Banks / Housing Finance Institutions approved by National Housing Bank for Housing Finance#
  • For reimbursement of cost incurred within a period of 6 months for purchase/construction of house/flat met from own resources during the preceding six months #

# Conditions Apply.

However, reimbursement is not permitted for purchase of Plot

Quantum Of Loan A TIERED METHOD OF CALCULATION OF ELIGIBLITY (FOR TL ):

 

As on date of Application, if the Age of the Borrower/Co Borrower is less than 45 years.

  • In case of salaried class, the loan amount will be restricted to 72 times of monthly Gross salary/income
  • In case of others, the loan amount will be restricted to 6 times of Gross Annual income as per ITR/Audited financials

As on date of Application, if the Age of the Borrower/ Co Borrower is  45 years  and above.

  • In case of salaried class, the loan amount will be restricted to 60 times of monthly Gross salary/income
  • In case of others, the loan amount will be restricted to 5 times of Gross Annual income as per ITR/Audited financials

In case of Joint Borrower’s, the number of times of loan eligibility shall be calculated based on each Individual applicant’s Age.

While computing the above, 60 % of the rental income from the property to be purchased /constructed /owned by the applicant can also be included for eligibility calculation.

OVERDRAFT ( OD ) PORTION:

OD Limit can be permitted up to 30 % of the original Home loan (Term Portion) upon the expiry of THREE years subject to repayment capacity and LTV.

TIME NORMS:

  • At the time of initial sanction of Home loan Term loan (HL TL), additional limit up to maximum of 30 % of the Home loan Term loan limit in the form of Overdraft shall be considered
  • However OD limit can be activated in the system as below
  • Up to 10 %,20%,30% of the Home loan Term loan limit can be released  only after  ONE /TWO/THREE years OF SATISFACTORY  conduct of  the account from the date of commencement  of repayment  subject to Borrower having  capacity  to service the Interest  and compliance of   40 % /30% NTHP norm and Loan to Value (LTV) norms ( HL Term loan  Balance O/s and the OD limit)
Nature of Facility
  • Term loan 100 % and additional Overdraft limit up to 30 % of the Home loan
  • Margin of 10 %, 20%, 25% & LTV ratio of 90%, 80% and 75% as the case may be ensured for both for Home loan –Term loan and Overdraft Portions
NTHP
  • In case Annual income of the Applicants (Individually or jointly) is up to Rs.15.00 lakhs, NTHP (after proposed loan EMI) should not be less than 40 % of the Gross Annual Income
  • In case  Annual income of the Applicants ( Individually or jointly) is  more than  Rs.15.00 lakhs, NTHP ( after proposed  loan EMI) should not be less than 30 % of the Gross Annual Income subject to  the minimum Annual Take Home pay of Rs.6.00 lakhs
Margin and LTV For Loans

  • Up to Rs.30 lakhs : 10% and LTV 90 %
  • Above Rs.30 lakhs up to Rs.75 lakhs : 20% and LTV 80%
  • Above Rs.75 lakhs: 25% and LTV  75 %
  • For Repairs and Renovation: 30%

However, with respect to Overdraft limit, LTV norm alone to be ensured and margin need not be insisted upon

Processing Fee
  • As communicated by corporate office from time to time.
  • In respect of existing  home loan Borrowers who seek OD limit against the same  HL property , a flat processing fee of Rs.1000.00 (inclusive of GST) irrespective of quantum to be recovered
Interest Rates
  • For Home loan -As applicable to Home loan Product
  • Overdraft -1 % over the applicable Home loan rate
  • Only variable interest rate product available

In respect of Home loan –CRE the ROI  for Home loan for Term loan portion will be 1% above the Applicable Home loan ROI and for OD portion it will be 2 % above the applicable Home loan ROI.

In respect of Overdraft limit, it should be ensured that the interest is serviced as and when debited.

Overdraft Portion of the Limit. Release of overdraft limit can be considered after a minimum period of 12 months from the date of sanction (incl. HL Take over)/after review of OD – in case of release of up to 20 % or 30 % of Home loan Term loan limit subject to a maximum (overall) of 30 % of the original Home loan limit.

An undertaking letter to be obtained from the applicants at the time of documentation that the overdraft limits shall be utilized for bonafide purpose other than speculative purpose.

The release of limit for existing account can be considered

  • On written  request  from the Borrower
  • Subject to eligibility  ( income and LTV)
  • Under any circumstances, the OD limit should not exceed 30 % of the Original Home loan term loan.
Repayment The  repayment is restricted to maximum  30 years  In case of  Home loan CRE ( Business class)-25 years  & NRI 20 years )  ( including Holiday period) or up to the Age of 70 years ( the age by which the loan should be fully repaid) of the Borrower whichever is earlier.

Out of the maximum repayment period (inclusive of Holiday period) the OD limit shall be liquidated in the last five years and before that the entire TL component shall be recovered. Hence irrespective of repayment period the OD limit shall be liquidated during the last five years.

During the last five years of the Tenor, OD facility will be permitted to be operated on reducing drawing Power arrangements on EMI basis so as to ensure that the entire   balance of OD facility is adjusted in full with interest at the end of the repayment period.

Holiday Period For Outright  Purchase of  House /flat NIL. However, on case to case basis, maximum 6 months can be permitted
For construction of house on the plot already owned by the Applicant. Maximum 18 months.
Purchase of plot and construction of house thereof /flat under construction by promoters/Developers Maximum 24 months

 

 

Flat under construction- in case of Bigger projects Maximum 36 months
Pre payment charges No pre payment charges
Applicable provision for existing Home loan accounts.
  • All existing Home Loan customers who have repaid a minimum of 12 EMI‟s regularly are eligible.  NRIs and Staff Members of our Bank, including retired staff members, are also covered under the Scheme.
  • Repaying capacity of the Borrower should be ensured taking into consideration the interest to be serviced for the total Limit based on the latest financial documents / Income proof
  • Any two of CIBIL/Experian/CRIF Highmark/Equifax report to be verified before according sanction of OD limits.  Wherever applicable CRILIC data to be verified.
  • Eligible OD limit  , Interest rate  etc as applicable to New Home loan Borrowers as discussed in the supra.
  • Wherever request for OD limit is made on Home Loan accounts where the HL balance outstanding is more than Rs.100.00 lakhs (after 3 years from the date of original HL sanction), fresh EVR to be obtained / verified for compliance of LTV norms before considering sanction of the OD limit.
  • Extension of EM is mandatory.
  • MOD registration for the OD portion need not be insisted as the total of Term Loan and OD portion will not exceed the original Home Loan limit (subject to availability of appropriate provision / clause in the original MODTD).  A covering letter from the borrowers/mortgagors to be obtained to the effect that in view of the top up of the Home Loan, the MOD originally created on the date to be mentioned will continue as security for an aggregate limit of the sum of both the balance outstanding in the Home Loan and top up loan amount
  • CERSAI registration for the existing limits to be ensured before considering the proposal for OD limits. 
  • CERSAI registration – mandatory.
  • Repayment for the existing Home Loan limit should not be altered.  Since the Overdraft Limit is being sanctioned in addition to existing HL Limit, repayment period shall be fixed for this Overdraft Limit exclusively at 5 years over and above the residual tenor of the Home Loan subject to original tenor plus the 5 years repayment period not exceeding 30 years / 25 years / 20 years as the case may be. Hence it shall be ensured that the OD Limit is liquidated on monthly reducing Drawing Power (DP) basis during the repayment period sanctioned exclusively for OD Limit.
  • While sanctioning OD limits for existing Home Loan accounts, a flat processing fee of Rs.1000/- (inclusive of service tax) irrespective of the quantum of OD limit to be recovered (applicable only for existing HL borrowers who seek limits under OD)

On sanction of OD limit for existing Home Loan borrowers, the existing Home Loan product code to be changed to Home Loan Advantage product code

The following documents are to be obtained while considering the request:

  • Request letter
  • Up to date EC and tax paid receipt from the competent authority
  • Other documents as per documentation manual for loan against title deeds viz. Composite Loan Agreement, D 57, F167, F 191, F 192, F 196 as applicable

In respect of conversion of existing Home Loans into this product, the respective Sanctioning Authority of the existing Home Loan can consider such sanctions subject to eligibility.

Security Equitable Mortgage of Property purchased / constructed out of loan proceeds.

Equitable Mortgage to be registered (at Applicant’s cost) if there is a provision for the same in the State where property is located.

CERSAI Registration (at applicant’s cost) to be done.

Since the facility is allowed with Opening  of Two separate accounts.EM is created on the overall limit of Home loan with sublimit of Home loan ( TL Portion and OD portion.

EM documents shall be released only after closure of both Home loan and OD accounts.

Other Terms
  • Commitment charges are not applicable in respect of OD  limits sanctioned  under this product
  • In respect of OD accounts all applicable charges Viz, Cheque Book charges etc. to be recovered
Value Addition All Borrowers under the scheme will get additional benefits as follows:

  • Debit Card
  • Credit Card – (Credit Limit is based on exclusive scoring of the applicant – Credit Card Model)
  • Free Insurance Coverage under Pradhan Mantri Suraksha Bima Yojana (PMSBY) for all applicant(s) for first 3 years subject to age limits 18-70 years.  The premium for one member is Rs.12/- p.a.
Insurance Property (offered as security) to be insured at borrower`s cost with Bank clause against fire, flood, earthquake, riot and other risks, which are normally covered by insurance companies

( Last modified on Jul 24, 2020 at 07:07:38 PM )