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Loan against Property


Purpose of the Loan:

 

  • Lending facility on Real estate property (House/ Flat) as equitable mortgage.

 

Eligibility:

 

  • House/ Flat should be freehold.
  • Applicant has the income tax assessed in the last three years and Permanent Account Number (PAN) is allocated to him.
  • In case of Joint Loan, Co-borrower may be Husband/ Wife/ Mother/ Father/ Son or Daughter in law.
  • The applicant should not be defaulter of any bank or financial institution.
  • The applicant and guarantor should be the A/c holder and nominal member of our bank.
  • Credit Score of loan applicant should be 700 and more.

 

Collateral Security:

 

  • Property should be wholly owned.
  • In case of co-ownership the mortgage equity should be of co-owners.

 

Term of Loan:

 

  • The maximum duration of the loan will be 10 years or applicant’s age of 70 years, whichever is less.

 

Maximum Loan Amount:

 

  • 60% of the market value of the property or Rs 40.00 Lakh or the debtor's ability to repay, whichever is less.
  • The minimum loan amount will be Rs 2.00 Lakh.

 

Interest Rate:

 

  • The loan will be charged at 12.00% rate of interest. The interest rate will be applied till the full payment period. Interest on the loan amount will be charged on a monthly basis and compounded.
  • If the amount of the monthly installments are not paid timely, the due installment payment will be charged at the rate of 2% as penal interest.

 

Prerequisite for Submission of Title Deeds:

 

  • The property owner will have to submit the original title deeds in the branch.
  • Attested copy of title deed will not be accepted at any case.

 

The Trial of Mortgage Property:

 

  • The registered deed of the property will be tested and a mortgage certificate for 12 years will be provided by the authorized advocates/ legal advisor of the Bank.
  • Evaluation of the property will be done by the Banks authorized valuator.

 

Repayment and Capacity Assessment:

 

  • Repaying capacity will be considered 50% of monthly income.
  • In case of non-salaried, the calculation will be made on the basis of income tax return.
  • In case of Joint Loan, the calculation will be done on the basis of both individuals income.
  • First Installment of loan repayment will be start from following month from the disbursement of loan.

 

Processing Fee:

 

  • 0.50% of sanctioned loan.
  • In case of loan approval, processing fee will not be refunded.

 

 

** For more information please visit the nearest branch of District Co-operative Bank Ltd. Pilibhit.