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63/2016
RETAIL ASSETS DIVISION: HEAD OFFICE:
ATMARAM HOUSE, 1 TOLSTOY MARG, NEW DELHI
Email: rad@pnb.co.in
10.08.2016
TO ALL OFFICES
Detailed guidelines regarding HOUSING FINANCE SCHEME FOR PUBLIC have been
issued vide RAD Circular No.63 dated 15.07.2015 and subsequent circulars issued on the
subject from time to time.
3. It may, however, be noted that Retail Assets Division, Head Office deals with matters
pertaining to Direct Housing Finance.
4. All concerned are advised to go through the guidelines carefully and ensure meticulous
compliance of the same.
(Naveen Kumar)
GENERAL MANAGER
Encl: As above
INDEX: HOUSING FINANCE SCHEME FOR PUBLIC
RAD CIRCULAR No. 63/2016 dated 10.08.2016
ANNEXURE
In terms of RBI guidelines, banks can deploy their funds under the Housing Finance
allocation in any of the three categories, i.e.
i. Direct Finance,
ii. Indirect Finance or,
iii. Investment in bonds of NHB/HUDCO or combination thereof.
Banks have the freedom to evolve their own guidelines on various aspects of granting
housing finance with the approval of their Boards.
Accordingly, Bank has in place Housing Finance Scheme for Individuals which is given as
under:
2. PURPOSE:
2.3 For purchase of under construction house/flat from Housing Boards/ Development
Authorities/ Co-operative Societies/ Approved Private Builders/ Projects. (Circle
Heads to approve Private Builders, as per criteria given in the subsequent
paragraphs in this Circular).
2.5 For carrying out repairs/ renovation / alterations/ cost of furnishing to the house/flat.
2.6 For meeting cost escalation in the cases of under-construction flats to existing Housing
Loan borrowers.
3. EXTENT OF LOAN
3.2 For purchase of Land/ Plot for House Building: Maximum Rs.50 lac.
However, Circle Heads may consider loan maximum of Rs.100 lac for Metro/State Capitals.
Further, ZOCAC may sanction loan for purchase of land/ plot for house building
depending upon merits/ genuineness of each case / repaying capacity and after fully
satisfying themselves about the realistic valuation of land/plot as under:
Further, it be ensured that the loan amount for purchase of Land/Plot under any
circumstance is not more than 60% of the eligible loan amount as per the repayment
capacity.
It is clarified that subsequent sale by the original allottee of plots allotted by the Govt. bodies
be treated as the purchase from private bodies.
3.4 Cost of furnishing may be included in the project cost with maximum upto 10% of
eligible Housing loan with a maximum upto Rs.5.00 lac.
3.5 Cost of one time life insurance cover premium, which is available to the Housing Loan
borrower(s) ON VOLUNTARY BASIS, may be financed at the option of the Housing
Loan borrower(s). The same shall be over and above the extent of loan, at prescribed
margin, for which the customer is otherwise eligible and subject to the repaying capacity
of the customer.
3.6 Cost of car parking to be excluded from project cost of house/ flat while granting Housing
Loan.
3.7 LOAN ON PARI PASSU OR SECOND CHARGE BASIS: Circle Heads and above are
empowered to consider requests only from confirmed employees of Central / State Govts.
/ Public Sector Undertakings for an amount of loan maximum upto Rs. 20 lacs and
extend credit to such employees, who might have raised funds for construction /
acquisition of accommodation from other sources and need supplementary finance after
obtaining pari passu or second charge over the property mortgaged in favour of other
Lender. The quantum of loan be decided taking into account the amount of earlier
loan availed and repaying capacity of the borrower.
3.9 Repayment should be fixed on a realistic basis, which should not exceed the prescribed
limit of Net Monthly Salary/Income (NMS/I) of the borrower(s). NMS/I is equal to {Gross
Salary/ Income Statutory Deductions such as Income Tax, Professional Tax,
Other Tax Liabilities, PF etc.} For this purpose, all deductions including the proposed
Housing Loan installment should not exceed the prescribed ceiling as under:
Further, Circle Head/COCAC & above, shall permit higher %age deduction of NMS/I
subject to Maximum 10% over & above the prescribed ceiling under each bracket of
NMS/I on individual merits of the case and after ascertaining expenditure pattern of the
prospective borrower(s), i.e., Circle Head/COCAC & above may permit deductions of
NMS/I MAXIMUM upto 50%, 60%, 70% and 80% in the above bracket, respectively.
3.9.1 For all class of borrower(s):- The regularity of income of the borrower(s) over the entire
span of loan should be clearly established before sanction of loan. Latest salary slip, ITR
(for the last three years) etc. be taken & perused.
3.9.1 (a): For Salaried class:- Latest salary slip, Form16/ITR for the last 3 years be taken,
perused and placed on record. Assessment of Loan/ Repaying capacity be arrived at on
the basis of latest salary slip. Where 3 years ITRs/Form 16 is not available on account
of lesser service period, the sanctioning authority may consider sanction of loan
provided last 12 months salary is verified either from salary slips/form 16 or Statement
of Account. Salary certificates must be independently verified from HR Deptts. of the
Co./concern).
3.9.1 (b): For other than Salaried class:- While ITRs and Audited Balance Sheets for the last 3
years of business/activity shall be taken and perused to ascertain continuity of income,
Assessment of loan/Repaying capacity be arrived at on the basis of income as reported in
the latest ITR.
NOTE:
3.10 The income of the spouse and earning children (whether married or unmarried) should
be taken into account for determining the income for the purpose of borrowers repaying
capacity. The income of the joint owners of the property may also be added for
determining the repaying capacity. In such cases, they should be made co-borrower.
3.10.1 Father/Mother can also be made as co-borrower in cases where property is in the single
name of his/her son and also clubbing of their income be permitted for the purpose of
eligibility/repayment of loan.
3.11 In case of self employed individuals the gross income may be arrived at by adding
amount of depreciation to the Net Profit amount and repaying capacity be assessed
accordingly.
3.12 Likely rental income, if the property is to be let out, be also considered for determining
the repaying capacity. The same be assessed on the basis of the rental value in the
locality in which the house/flat is located. The market report may be gathered from the
property dealers of the locality and a mention of the same may clearly be made in the
sanction note.
4. MARGIN:
Parameters Margin
For All purposes except to Housing Loan Upto Rs.75 lac 20%*
purchase of Land/Plot
Housing Loan above Rs.75 lac 25%*
*NOTE
a) Charges e.g. stamp duty, registration charges and other documentation charges, if any, paid
by the borrower shall not be considered towards margin money. However, Acquisition cost of
Plot be considered towards Margin Money).
i. Margin being stipulated without factoring in the amount payable towards stamp
duty/registration of flat;
ii. Borrower ending up availing the full sanctioned loan amount, and paying the same to the
builder along with their stipulated margin;
iii. Borrower expressing his inability, after taking possession of the flat, to incur further
expenditure towards registration of the flat.
Example: Cost of flat, margin and stamp duty payable has been taken as under:
c) The third scenario as stated at (4b.iii) above leads to non creation of EM for securing the
advance, as the borrower/s would not be able to get the sale/title deed executed from the
builder due to inability to pay stamp/registration charges.
d) Considering the above set of data, the following clarifications are being issued for
compliance in cases where the cost of the house/dwelling unit exceeds Rs.10 lac:-
i) The branch to disburse each installment/ stage of loan in such a way that the disbursed
loan amount at any stage does not exceed at the %age arrived at by dividing loan
amount sanctioned from total cost of the flat/house in the hands of purchaser (C) (i.e.,
70% as per H in the above example). This would result in the loan being disbursed to the
tune of Rs.70 lac, with a contribution of Rs.30 lac by the party. The remaining amount of
loan (Rs.5 lac as per example) would be disbursed towards stamp duty / registration
charges, alongwith Rs.2 lac by the borrower.
OR
ii) The branch may advise the borrower to deposit a sum equivalent to the stamp duty /
registration charges (Rs.7 lac as per example) upfront, to be kept in the shape of FDR
under lien, to be appropriated for payment of stamp duty/registration after the entire loan
amount has been disbursed.
While the alternative (4d.ii) above shall take care of the entire stamp duty / registration
charges being available with the bank, the option (4d.i) leaves a substantial portion of
stamp duty with the bank (in loan account). Having got a Power of Attorney executed by
the borrower as part of loaning documents in the beginning itself, the Bank can get the
sale deed executed with the available funds, and EM thereof can be created to secure the
bank advance, simultaneously safeguarding bank interest over the entire tenure of the
Loan.
4.1 Further, field functionaries to ensure that Loan to Value Ratio (LTV) should not exceed i) 80%
for loans upto Rs.75 lac; and ii) 75% for loans above Rs.75 lac.
4.2 As per RBI Circular no DBR.BP.BC.No. 44/08.12.015/2015-16 dated 08.10.2015, the LTV
should not exceed the prescribed ceiling in cases of fresh sanction. In case the LTV ratio
is currently above the ceiling prescribed for any reason, efforts be made to bring the same
within limits.
5.1.A Non- CRE where more than 50% of the monthly installment of the loan is to be repaid
from the borrowers own income and not from rental income of the house/flat/unit being
financed.
5.1.B CRE where more than 50% of the monthly installment of the loan is to be repaid from the
rental income of the house/flat/unit being financed.
5.1.C In case of Non-CRE, normal rate of interest as applicable to 1st or 2nd house shall be
charged and existing Interest Table code (HALLB) to be filled w.e.f. 01.10.2015 in all new
housing loans for 3rd or subsequent house/flat etc. under floating rate option in Base Rate
system. Under MCLR system the Interest Table Code will be HALLM w.e.f. 01.04.2016.
5.1.D In case of CRE, as bank is required to maintain high capital charge and provisioning on
standard loans, interest rate to be charged @ MCLR+0.55% and interest table code
(H3RHM) to be filled w.e.f. 01.04.2016. While entering the interest table code as H3RHM,
it should be ensured that no further preferential shall be loaded, i.e., Account
Preferential Dr. field should be left blank.
5.1.E Further, where any concession in rate of interest has been permitted by the competent
authority for 3rd or subsequent house/flat classified under CRE, the same should be filled
in Account Preferential Dr. field. For example, if concession of 0.25% has been
allowed by the authority, then Interest table code shall be H3RHM and Account
Preferential Dr. field shall be -0.25% (minus 0.25%).
5.2 The existing housing loan accounts of 3rd or subsequent house/flat will continue as per the
extant guidelines.
5.3 In case the plot/land is sold or account has been closed without construction both within 5
years from date of first disbursement, rate of interest applicable to Commercial Real
Estate with corresponding PNB Score/ Risk rating score will be charged from the date of
first disbursement of loan.
5.4 The interest rates from 01.07.2000 onwards are available as at Annexure F.
5.5 Incumbents may allow existing Housing Loan borrowers to change the option from Fixed
to Floating rate of interest and vice versa. Such change of option shall not, however, be
permitted for a minimum period of 3 years, where after any change will be at the
discretion of the sanctioning authority. Change of option shall, however, be subject to
payment of 2% flat fee on the balance outstanding in the account. Circle Head at his
discretion, may, reduce this charge upto 1% flat fee on the balance outstanding in the
account on merits of each case and other business consideration.
Circle Heads & above will ensure judicious exercise of the above discretionary powers at
their level on a selective basis only keeping in view the profitability angle. Further, such a
benefit shall, however, be allowed to only those Housing Loan borrowers whose
accounts are running regular and no inspection irregularities are outstanding in their
account. This benefit is to be allowed on obtention of supplementary agreement as per
Annexure available under Documents as at ANNEXURE XIX.
5.6 The borrower(s) will be required to exercise the option of Fixed/ Floating rate of interest at
the time of submission of loan application and the same be obtained invariably.
5.7 Fixed rate of interest option on Housing Loans disbursed on or after 1.8.2006, will be
subject to re-set clause of five years. There will, however, be no application of re-set
clause for a repayment tenor upto five years. The re-set clause will be as under :-
Interest rate shall be reviewed and re-set on completion of a block of five years. Year of
first disbursement, whatever be the month of availment, will be taken as first year and
year will cover the period from 1st April to 31st March. As and from 1st April, after
completion of every block of five years, the interest rate as re-set will be applied. If there
is any delay in revision/re-set of interest, appropriate adjustment will be made in the
account, effective from 1st April of the year. If the interest rate is not re-set, until it is re-
set, rate as prevailing before will be applied. If interest rate is not re-set in the year when
it is due, it shall be open to the Bank to re-set the interest in any subsequent year and in
such event, the interest rate as re-set, will be applicable from 1st April of the year in which
it is re-set for the remaining years of block of five years. Only Bank has full discretion to
fix/prescribe/revise/re-set the rate of interest.
5.8 As per IRMD, L&A Circular No.88/2011 dated 30.07.2011 since superseded by IRMD
L&A Circular No.18/2014 dated 30.01.2014 and IRMD, L&A Circular No 26/2016 dated
31.03.2016, whenever an existing fixed rate housing loan disbursed under BPLR/ Base
Rate system, where reset clause is applicable, becomes due for reset, the same should
be migrated to MCLR system and the rate of interest shall be fixed at a rate as applicable
to fixed rate loans under the MCLR system, depending upon the original tenor of the loan,
on the date of reset and rate shall continue to be fixed till next applicable reset date.
Accordingly, the rate of interest in the loan accounts sanctioned under fixed option shall
be reset on 1st April every year, after completion of every block of five years, and rate
shall continue to be fixed till next applicable reset date.
5.9 The guidelines/ provisions regarding revision/ resetting of rate of interest for all housing
loans sanctioned & disbursed during 01.01.2009 to 30.06.2009 under PNB SPECIAL
HOUSING LOAN SCHEME under Fixed rate option with re-set clause of 5 years, are as
under:
The rates are fixed for first five years. Re-set of interest rates will uniformly be done on
01.07.2014 and thereafter every five years. The applicable interest rate will be 150 bps
higher than the applicable interest rate for five years deposit or peak interest rate of
deposit, whichever is higher prevailing at that time.
Accordingly, Interest Rates on PNB SPECIAL HOUSING LOAN SCHEME under Fixed
Rate of Interest with effect from 01.07.2014 have been circulated vide RAD Circular
No.50/2014 dated 22.07.2014, and the same is as under:
Parameter ROI
For Loans with limits
upto Rs.5 above Rs.5 lacs & above Rs.20 lacs
lacs upto Rs.20 lacs & upto Rs.50 lacs
INTEREST TABLE CODE SHR05 SHR20 SHR50
MODE OF ADVANCE DIHRS
150 bps higher than the
applicable interest rate for
five years deposit or
peak interest rate of 9.00+1.50, i.e., 10.50%
deposit, whichever is
higher, which as on
01.07.2014 was 9.00%.
Incumbents are advised to ensure that Rate of Interest is RESET w.e.f. 01.07.2014, as
per provisions of Para 2A of loan agreement, in all housing loans sanctioned & disbursed
during 01.01.2009 to 30.06.2009 under PNB SPECIAL HOUSING LOAN SCHEME.
These rates will be applicable for a further period of five years. Next such reset will be on
01.07.2019 and the applicable interest rate will be 150 bps higher than the applicable
interest rate for five years deposit or peak interest rate of deposit, whichever is higher
prevailing at that time.
5.10 Further, whenever loans for repairs/ renovation/ alteration, furnishing and additions is
allowed to an existing housing loan borrower(s) for the same house for which the existing
housing loan is outstanding the ROI applicable on the existing as well as proposed
housing loan shall be determined on the basis of ABSOLUTE THRESHOLD EXPOSURE*
made avaliable to the borrower.
* ABSOLUTE THRESHOLD EXPOSURE for this purpose, as circulated vide IRMD, L&A
Circular No.52/2014 dated 28.04.2014 on Credit Exposure Norms and other circulars
issued from time to time, shall mean:
b) WHERE EARLIER SANCTIONED LIMIT HAS BEEN FULLY AVAILED AND THER IS
NO SCOPE FOR REDRAWING ANY PORTION OF THE SANCTIOED AMOUNT: Actual
outstanding plus additional Housing loan limit proposed to be sanctioned.
6. SECURITY:
6.2 Where mortgage cannot be created immediately in situations like house/flat is being
purchased/allotted by the Housing Board, Development Authorities or Co-operative
Society/Builder, and title/conveyance deed is executed in favour of purchaser only after
completion of construction & possession/ making full payment of the cost of house/flat, a
stamped Tripartite Agreement be executed amongst Housing Board/ Development
Authority/ Co-operative Society/ Builder, the intending borrower and the Bank before
release of the loan. (By entering into Tripartite Agreement among Board/ authority/
society/Builder/ seller, allottee/ purchaser and bank, bank gets direct privity with the
Housing Board/ Development Authority/ Co-operative Society /Builder.)
6.2.2 Circle Head concerned shall permit the branches to consider such loans after examining
the terms and conditions of the allotment letter of the concerned authority, ensuring that
the Banks funds shall always remain secured and compliance of following:
a) Obtaining original Letter of Allotment;
b) Negative lien on property being financed;
c) To inform concerned Institutions that bank has financed the property, get Banks lien
noted in their records and obtain original possession slip issued by the concerned
Institutions;
d) Power of Attorney be obtained from the borrower for directly obtaining the lease/
conveyance deed from concerned Institutions upon its execution. An intimation in this
regard be sent to concerned Institutions along with the Copy of Power of Attorney
authorizing the bank to collect the lease/ conveyance deed directly from the concerned
institutions (and if possible acknowledgement obtained).
e) As and when registered lease/ conveyance deed is executed by the concerned
Institutions in favour of the allottees, the same should be got collected from the concerned
institution and deposited immediately at the branch for creation of Valid mortgage.
f) As the concerned Institutions always give second charge to the financing Bank, such
Institutions should undertake that in case of cancellation of House/flat/ plot, the entire
surplus amount standing to the credit of borrower after adjusting their dues will be
refunded to the Bank towards adjustment to the borrowers loan account.
g) Undated blank cheque to be obtained from borrower and held on records.
6.2.3 To secure such loan, suitable security / third party guarantee, as considered
necessary, in all above situations to be taken for the interim period, i.e., the period
upto which mortgage is not created.
Further, Branch Incumbent in scale of SMG- IV & above/ Circle Head & above has been vested
the power to waive the security / third party guarantee on merits of each case. However, in
all such cases, parent(s)/ spouse/ earning children to be made as a co-borrower.
However, where parent(s)/ spouse/ earning children is not standing as a co-borrower, Circle
Head is authorized to waive security / third party guarantee in all such cases.
In case of private builders in Noida/ Greater Noida where the land cost has not been fully
paid to the concerned authority and where mortgage cannot be created immediately:
6.3.C.1 Housing loans shall be sanctioned in all such cases where the builder/ their projects are
approved by the Circle Heads as per extant guidelines of builder approval. Further, power
vested with the Incumbent of Scale IV and above to sanction loan in cases of unapproved
private builders on merit of individual case is not to be exercised for financing housing
loans at Noida/ Greater Noida, in cases of partly paid projects of builders/developers.
6.3.C.2 Further, besides entering into stamped tripartite agreement (TPA) with the builder and
borrower, suitable security / third party guarantee, as considered necessary, in above
situations to be taken for the interim period, i.e., the period upto which mortgage is not
created. Net means of guarantor should be at least equal or more than the loan amount.
However, Circle Head may waive security / third party guarantee in such cases on merits of
individual case.
NOTE: Applicable to para 6.3
The sanctioning authority may accept, at its discretion, equitable / registered mortgage of
some other property / pledge of Government security, NSCs, KVPs, IVPs / PSU Bonds
(where interest is being serviced regularly) / bank's FDR / LIC Policies (surrender value)
etc. The value of such security so obtained should be equal to 125% of the loan amount.
The details of such situations, alongwith reasons of obtaining alternative security as
detailed above, must clearly be specified in the sanction note by sanctioning authority.
6.4 In States like Maharashtra, many builders purchase land from various sources and before
commencing construction, enter into an agreement for sale of flats with buyers and after
the construction is completed, they hand over the possession of the flats to the
purchasers. In these States, Housing loans are extended to such individuals against
equitable mortgage created by depositing sale agreements executed by the buyers with
the builders in the said manner. In case the borrower/purchaser fails to pay full purchase
price and the builder/developer exercise the option to terminate the agreement, then the
pecuniary interest of the bank which has already released part of the loan amount to the
builder, is found to be at stake.
Wherever such cases are considered on merits, as per Banks guidelines, a tripartite
agreement between builder, purchaser and the Bank will be executed in the above cases
also, binding the builder with the obligation of obtaining prior permission from the Bank to
resell the property, in the event the builder exercising the option to terminate the
agreement with the borrower/purchaser.
AND
During service, AGIF insurance & benefits (after deducting dues to AGIF) will stand
security to loan advanced by the bank. However, the additional security offered by way of
insurance coverage shall be in addition to the primary security.
6.6 Security Verification to be carried out once in two years for regular accounts after initial
end use verification and on half yearly basis in case of NPA accounts. In case of two
continuous defaults in repayment, inspection should be carried out immediately.
6.7 In cases where there is a gap between the handing over of the conveyance of title to the
borrower by the builder and creation of mortgage with the Bank by the borrower, during
which the borrower may deal with the property otherwise also, before creation of
mortgage with the Bank, separate NEC/ Search Report at the time of creation of
mortgage in respect of property (Flat/House) should be obtained.
7. DISBURSEMENT
7.1 For outright purchase of house/flat & plot, the loan will be paid in lump sum to the vendor
at the time of registration after satisfying that borrower has paid/provided for the balance
amount/his contribution.
7.2 For house/flat under construction, the loan amount will be disbursed in stages depending
on progress of construction, i.e., at stage like completion of plinth, construction upto lintel
level, completion of roof etc. and/or demand raised by selling agency after ensuring that
the borrower has invested his pro-rata share towards required margin.
Further, RBI vide its circular NO. RBI/2014-15/491 DBR.BP.BC.No.74 /08.12.015/ 2014-
15 dated 05.03.2015 has, further, advised that in cases of projects sponsored by
Government/ Statutory Authorities, Bank may disburse the loans as per the payment
stages prescribed by such authorities, even where payments sought from house buyers
are not linked to the stages of construction, provided such authorities have no past history
of non-completion of projects.
7.3 In case of additions, also, the loan amount will be disbursed in stages depending on
progress of construction.
7.5 Reimbursement in Housing Loan may be allowed to prospective borrowers, who have
purchased property out of their own sources, provided request for such reimbursements
are made within a maximum period of three months from the date of purchase of said
property. Such reimbursements may be permitted by Circle Heads & above after duly
verifying the source of funds for purchase of said property.
8. INSURANCE:
8.1 The property will be kept insured for reconstruction cost (and not the market value or the
limit sanctioned for houses/flats as the reconstruction cost will be higher as compared to
limit sanctioned) in respect of fire, riots and wherever required, against other appropriate
hazards, such as earthquake, flood etc. by the borrower, with usual bank clause. BMs
should ascertain by reviewing on an on-going basis that the adequate coverage of
insurance is available for reconstruction cost at all times, as the cost may increase during
the period of insurance policy, which generally is being taken for a period of 10 years.
8.2 Subsidiaries of General Insurance Corporation are issuing insurance policy, specifically to
cover risks relating to housing. These policies are called Fire Policy A, which cover
risks such as fire, lightening, riot, strike, terrorism, storm, cyclone, typhoon, hurricane,
tornado, flood, inundation, earthquake, fire & shock. These policies can also be issued
on one time basis for a period of 10 years at a reduced premium, i.e., 50% of the normal
premium.
8.3 The reconstruction cost of the property is based on rate of construction of the building as
per the PWD rates for that particular region and the same is suitably loaded for extra
fittings and fixtures, superior constructions and other relevant details.
8.4 In fire insurance, building above the plinth and foundation is covered. However, when the
policy is extended to cover the risk of earthquake then the cost of plinth and foundation
can be included in the sum insured.
8.5 GROUP LIFE INSURANCE Life insurance cover (both due to natural and accidental
death) to Banks existing as well as new housing loan borrowers is also offered on
OPTIONAL BASIS. Reference may be made to the relevant circulars issued from time to
time by Retail Assets Division, HO on the subject.
9. REPAYMENT
9.1 For carrying out repairs/ renovation / alterations to the house/flat: Loan along-with
interest is to be re-paid in equated monthly installments within a period of 15 years
inclusive of moratorium period, if any.
9.2 For Others: Loan along-with interest is to be re-paid in equated monthly installments
within a period of 30 years inclusive of moratorium period, if any.
9.3.1 For Construction/ Additions of House/ Flat: Till completion of construction (including
additions) or 18 months, from the date of disbursement of first installment of the loan,
whichever is earlier.
9.3.2 For carrying out repairs/ renovation / alterations to the house/flat: Till completion of
repairs/ renovation / alterations or 6 months, from the date of disbursement of first
installment of the loan, whichever is earlier.
However, Circle Head and above may further relax the moratorium period by six
months under the both Para 9.3.1 & 9.3.2 above.
9.3.3 For purchase of ready built House/ flat OR land/plot: The repayment to start after the
date of possession or 3 months from the date of advance, whichever is earlier.
Note: Further, in those cases where a moratorium period is allowed by the sanctioning
authority, where loan is allowed for construction purposes, it may be ensured that the
amount of expected accrued interest, on monthly compounded basis, for the period of
moratorium is added to the Loan (Principal) amount presuming that the entire loan is
disbursed on the date of first disbursal itself and EMI calculated accordingly.
However, there may be situations where Sanctioning Authority is required to quote EMI
matching to the EMI quoted by our competitors. This is on account of recovery of interest
component chargeable in the account, during the period of moratorium, by some of the
Housing Financial Institutions / Banks. Therefore, it is desirable that the prospective
borrower is suitably advised and given the option, at his/her specific request, of either:
Repaying the interest component chargeable in the account during the period of
moratorium and EMI thereafter;
OR
In case borrower exercises the option of not paying interest during the moratorium period,
interest component chargeable in the account for the moratorium period would be spread
over the EMIs for the entire repayment period. The EMI in such cases be appropriately
worked out and advised presuming that the entire loan is disbursed on the date of first
disbursal itself.
Further, the aforesaid provision of moratorium period be developed and promoted/ used
as an effective marketing tool by the field functionaries.
Whichever is earlier, subject to interest being collected on monthly basis (as and
when debited) during the moratorium period.
9.3.5 In case of Loans to AGIF members on paripasu basis: Loan to be repaid by way of
EMI payable every month at the end of each calendar month with moratorium period of 18
months. Pending the commencement of EMI, the borrower shall pay interest every month
on the disbursed loan at the applicable rate. Borrower may chose to pay higher EMI
during the service period and a lesser EMI post- retirement to the Bank or the borrower
may chose to step up the EMI at periodic interval.
9.4 In case of loans to individual members of Group Housing Societies, the repayment shall
start from immediate subsequent month after the final disbursement of the loan.
9.5 Sanctioning authority may consider fixing the monthly installments on graduated basis, if
there is reasonable expectation of growth in the income in the coming years on specific
request from the borrower.
9.6 Repayment of the loan along with interest should not extend beyond the age of 70 years
of borrower. In case loan is allowed to joint owners, it should be ensured that at least one
of the joint owners should be able to repay the loan along with interest maximum upto the
age of 70 years. Circle Head & above may relax repayment period upto the age of 75
years.
Further, Incumbent/ sanctioning authority of the branch may consider Repayment Tenor
according to the age of co-borrower (who is not a co-owner) maximum upto his/her
age of 70 years based on due diligence/ merits of each case.
However, Circle Head & above is empowered to consider repayment tenor according to
the age of co-borrower (who is not co-owner), maximum upto his/her age of 75 years,
based on due diligence/ merits of each case.
9.7 In order to ensure that regular installments are received and defaults are minimized
it be ensured as under:
9.7.1 At location where NACH/RECS (Debit) is not available- Recovery/ Repayment of EMIs
in all Retail Loan accounts be considered through PDCs /Standing Instruction. Mandate of
the customers for debiting their accounts through Advance cheques (CTS-2010) signed
by the borrower repaying monthly installments under the cover of letter be obtained. Such
Post dated advance cheques should be obtained of that account whose statement of
account is obtained and not of our Bank where a shadow account is opened just for
getting cheque book.
Minimum 24 Advance Cheques (CTS-2010) signed by borrower towards repayment of
monthly installments along with Letter of Deposit be obtained. However, when the number
of cheques with the branch reaches six (6), the borrower to give additional 24 cheques
duly signed. This system of giving additional cheques shall continue till the adjustment of
the loan. The guidelines for safe custody of advance cheques circularized by Inspection &
Audit Division be followed.
OR
At location where NACH/RECS (Debit) is available - Recovery/ Repayment of EMIs in all
Retail Loan accounts be considered only through NACH/ RECS (Debit) mandate of the
customers for debiting their accounts. Further, wherever NACH/RECS (debit)/ Standing
Instructions are obtained, 2-3 PDCs (in CTS- 2010 Standard Format) be procured/
maintained as SECURITY by the branches to keep remedy alive under Section-138 of
Negotiable Instruments Act.
OR
Irrevocable Letter of Authority from the borrower to the employer for either remitting the
salary to the bank or for remitting the monthly installment for repayment of loan to the
bank. An acknowledgement of the said letter of authority from the employer be kept on
record. Further, in cases where employer remits the salary to the bank, an irrevocable
letter of authority from the borrower be obtained for debiting the amount of installment to
the SF Account.
9.8 Illustrative charts indicating EMI to cover repayment of principal and interest on Upfront /
advance basis and on Arrear basis are available as at Annexure I.
9.9 Effect of upward revision in interest rates on repayment: The borrower always has
one of the following options to exercise for repayment of loan:-
a) To pay increased amount of EMI;
b) To continue to pay the existing amount of EMI with condition that the balance outstanding
in the account would be paid in one go with last EMI of the originally applicable
repayment tenor;
c) To prolong the repayment period.
In case no option is given by the borrower, the option 9.9.c, i.e., to prolong the repayment
period appropriately be implemented, subject to the condition that in the event of revision
in interest rate to be charged in the account, if a borrower shifts to the next higher bracket
of repayment tenor, the applicable rate of interest will be charged for the original
repayment bracket/tenor.
10. UPFRONT FEE & DOCUMENTATION CHARGES: As advised by IRMD, HO- L&A from
time to time. Presently, in terms of IRMD, L&A Cir. No. 87/2014 dated 12.07.2014 is as
under:
Parameters Loan Amount Fees/Charges*
0.50% of loan amount,
Upto Rs.300 lac
Upfront Fee Max. Rs.20000/-
Above Rs.300 lac Rs.50000/-
Documentation Charges Irrespective of amount Rs.1350/-
* Exclusive of service tax & education cess.
Upfront fee to be recovered in stages as per IRMD, L&A Cir. No.87/2014 dated
12.07.2014, presently prescribed as under:
10% of Processing charges/ upfront fee is to be recovered on receipt of Proposal.
However, Chief Manager/ Circle Head and above may relax the condition on merits of the
case. Minimum 50% of Processing charges/ upfront fee on the amount of limit
sanctioned (inclusive of fee charged at the time of receipt of proposal) at the time of
handing over letter of sanction. Balance 50% at the time of disbursement.}
10.1 INSPECTION CHARGES: Inspection charges to be recovered in terms of L&A cir 22
dated 30.03.2016.
Note:
i. In view of the revised Retail Credit Dispensation Model (RAPC), powers vested with
MCBs/LCBs headed by DGMs/AGMs to consider Housing loans to Executives of
Corporate banking with them have been withdrawn w.e.f. 01.04.2016.
ii. The cases where PNB Score is above 40 & up to 50 can be considered by next higher
authority for sanction with proper justification. References be made to circulars issued on
the subject PNB SCORE from time to time.
Circle Head of the area where housing property is located is, however, empowered to
give administrative clearance for considering sanction of Housing Loan at RAPC/ Branch
falling in his/her area, on merits.
a) Where the loans are prepaid by the borrowers from their own sources.
b) Where the borrower shifts to other bank within 30 days from the date of issuance of
circular for upward revision in the rate of interest to be charged in his account or change
in other terms of sanction.
However, a flat pre-payment charge of 2% be recovered from all other borrowers, i.e., on
fixed rate housing loans, who intend to shift their Housing Loan Accounts to some other
Banks / Financial Institutions by way of availment of loan from such banks / financial
institutions.
This pre-payment charge is recoverable on all loans sanctioned under the Scheme on or
after 5.12.2001 or in those existing accounts where facility of lower rate of interest is
allowed.
Note: Dual Rate/ Special Rate Housing Loans cannot be treated as fixed rate loans.
Accordingly, on Dual Rate/Special Rate housing loans, from the date the rate of interest
becomes FLOATING, NO foreclosure charges/prepayment penalty be charged (in terms
of L&A Circular No. 81/2012 dated 08.10.2012 since superseded by L&A Circular
No.54/2014 dated 09.05.2014), on Housing Loans sanctioned at FIXED RATE with reset
clause, if the borrower exercises his option for floating rate interest at the time of reset).
13.1 To facilitate the prospective Housing Loan borrowers who are interested in knowing what
amount of loan he/she is entitled and to help them to take a decision on purchase of the
property, functionality has been developed to provide system generated Provisional
Sanction Letter including calculation of Equated Monthly Installments (EMIs) by the
branches to the prospective borrower.
13.2 The Provisional Sanction Letter is generated solely on the basis of information provided
by the prospective housing loan borrower with respect to his/her details about personal
information, income, repayment, property etc. Further, for generation of Provisional
Sanction Letter no document is required to be taken from the prospective borrower.
13.3 The above functionality be accessed on Finacle and Internet through login password
which has already been provided to the branches to access Online Loan Applications on
IP addresses as under:
For Finacle users: http://10.192.11.91
For Internet users: https://pnbnet.org.in
Branches are advised to invariably generate and provide Provisional Sanction Letter to
all the potential Housing Loan borrowers as and when they raise any query/ visit the
branch for seeking Housing Loan.
13.4 To safeguard the Bank's interests, it be clearly specified while Bank provides Provisional
Sanction letter, the Bank is under no commitment or obligation to sanction/disburse loan.
The actual sanction or disbursal will depend upon receipt of application complete with all
particulars, the value and acceptability of the security offered (i.e. the house / flat to be
financed), legal and technical clearances and the creation of the valid equitable mortgage
etc.
13.5 Further, Provisional Sanction Letter shall be valid for a period of three months from the
date of its issue.
Detailed guidelines regarding the same have been issued by ITD: HO vide Circular No.
ITD/ Non CBS/ 02/2013 dated 11.02.2013.
For Housing Loan accounts (a) where repayment has not started; and (b) rephasement
has been done consequent upon expiry of moratorium period - The Interest Certificate be
generated by invoking Menu Option INTCERT in FINACLE.
The Interest Certificate be issued to all housing loan account holders without any specific
request from them and dispatched at the registered address of the Housing Loan
Borrowers within 30 days from the close of respective Financial Year, i.e., by 30th April
every year.
System generated Provisional Interest Certificate for the complete financial year covering
the period from 1st April to 31st March every year be provided to all Housing Loan
borrowers, which is available under PNBRPT 3/56a by providing 16 digit account
number of Housing Loan A/c. The same is based on the following:
i) The interest charged in the account from the month of April onward to the month of last
application of interest on actual basis;
ii) The interest for the remaining period of the financial year ending next March on notional
basis;
iii) The calculation of notional interest is based on monthly product;
iv) The notional interest is calculated on the outstanding balance on the first day of the
month after adding interest notionally calculated for the previous month and deducting the
installment amount (flow amount as given in the E details);
v) The sum of interest for 12 months (Actual + Notional) is printed in the certificate
generated through this functionality;
vi) There is no credit other than the installment (flow amount) and debit other than the
interest amount.
15. STATEMENT OF ACCOUNT: All incumbents are advised to ensure that the statement of
Account of all the Housing Loan Accounts are generated in the first week of April and
issued/ dispatched by 30th April every year at the registered address of the Housing Loan
account holders without waiting for any specific request from the borrowers. The annual
statement of account containing all the relevant details can be generated in MIS server
under PNBRPT 3/56.
17.1 Sanctioning Authority may permit takeover of housing loan accounts from other
financial institutions/ banks.
Further, Circle Heads and above may allow takeover of Housing Loan accounts from
other than FIs/Banks, on individual merits of the case (s), subject to the condition that the
loan allowed by employer has been for the purpose of Housing activity only.
However, Sanctioning Authority, while taking over the loans shall ensure that housing
loan accounts with other financial institutions/banks/employer are running regular with
no defaults in payment of interest/installments and take over is to be permitted strictly in
terms of Banks extant guidelines for takeover of a/cs circulated vide IRMD L&A Circular
No.109/2014 dated 06.09.2014, 23/2016 dated 31.03.2016 and subsequent circulars
issued from time to time.
17.2 In case takeover of housing loan accounts from other FIs/banks, as the original title deed
remains in the possession of previous financer and is released only after disbursement of
loan by our branch, following steps be taken:
Certified copy of the title deeds be obtained from the concerned office of Sub-
Registrar/Registrar of Assurance by the counsel of the Bank and he should give the
search report as per the Law Division Circular No.07/2014 dated 30.01.2014 and other
circulars issued from time to time in this regard. The other documents like previous
electricity bill, water bill, house tax receipt etc. be also examined to satisfy about
ownership of proposed borrower.
The counsel and Branch Manager should visit the site personally and identify the property
in question including sanction of the map.
The Branch Office should draw credit information report from Credit Information Agencies
(CIBIL/ Equifax/ Experian etc. as per Banks extant guidelines) data base to have
information about availment from other banks and repayment of loan status.
The party should request his/her banker to allow examination of original title deed. The
other bank is obligated to allow examination of original on the request of borrower. Under
Section 60B of Transfer of Property Act, 1882, Mortgagor is entitled at all reasonable
times, at his/her request and his/her own cost and on payment of the mortgagees costs
and expenses in this behalf, to inspect and make copies or abstracts of, or extracts from,
documents of title relating to the mortgaged property which are in custody or power of the
mortgagee. In case of reluctance on the part of existing financer, the above provision of
law can be quoted.
17.3 Besides, compliance of Law Division Circular No.07/2014 dated 30.01.2014 regarding
Investigation of Title & Search Report, L&A Circular No. 53/2016 dated 30.07.2016
regarding Mortgage of Immovable Property/ Assets, L&A Circular No.109/2014 dated
06.09.2014 & 23/2016 dated 31.03.2016 regarding Takeover of Borrowal accounts, L&A
Circular No. 55/2012 dated 05.07.2012 regarding Mortgage of IP- Investigation of Title &
Search Report since superseded by L&A circular No 19/2016 dated 30.03.2016 and
subsequent circulars issued on the relevant subjects from time to time be ensured.
17.4 At the time of takeover of Housing Loan, the sanctioning authority, based on the
merits of the case and eligibility of the borrower, is allowed to permit repayment period as
per Housing Finance Scheme for Public after reducing the period already availed
with the existing bank, provided that at all times the criteria regarding maximum loan
amount, LTV ratio, maximum repayment period etc.under the scheme are not diluted.
In view of the changes in the existing scheme on account of recently issued government
directions, the guidelines on Solar Financing are being issued separately.
a) Bank credit as housing finance can be extended for repairs, renovations, additions etc. to
a building/house/flat irrespective of whether it is owner occupied or tenant occupied. For
this purpose, estimate of cost of repair etc., and the certificate of completion of work done
be obtained from qualified engineer/architect.
b) There is no bar in providing finance to a person who or whose spouse already having a
house or flat in his/her name.
c) In case of finance for purchase of plot/land/flat/ house, sanctioning authority to ensure
that the title of the same is marketable and free from encumbrances.
d) In case of sanctioning of Housing Loan in favour of HUF, Law Division, HO, has advised
as under:
b) For Prospective Borrowers dealing with other Banks/FIs- The track record of at
least one year of prospective borrower/ co-borrower, dealing with other banks/ FIs and
willing to avail loan from our Bank must be thoroughly verified before making the
advance. Further, the genuineness of documents including Bank A/c statements etc. to
be obtained for this purpose shall also be ensured invariably, besides conducting other
checks such as CIBIL database check- up, KYC norms etc. and fulfilling other
requirements of the scheme.
c) In case of the customers not having their account with any other Bank/FI or for any
deviation on the above account, the Branch/ RAPC In-charge in the rank of Scale IV &
above/Circle Head may take suitable decision based on merits of each case.
v) Also talking to the occupants of property to confirm that the property has not
changed hands before being offered to the Bank or there are deals underway
on the property, which may subsequently lead to litigation, resulting in dilution
in Banks securities.
r) Repayment period of restructured housing loan may be fixed depending upon the
repaying capacity of the borrower but should not exceed 30 years or till the borrower
attains the age of 70 years, whichever is earlier. However, circle head & above may relax
the period till the borrower attains the age of 75 years.
Further, housing loan may be rescheduled by the incumbent In-Charge of the branch
within his/her vested powers and as per guidelines stipulated above and other guidelines
as circulated by IRMD, HO on reschedulement of loans from time to time subject to
following conditions:
Borrowers should ensure that prior permission/approvals from government/ local governments/
other statutory authorities, wherever required, with respect to the plot, have been obtained.
No loan shall be given in respect of those properties which fall in the category of unauthorized
colonies unless and until they have been regularized and development and other charges paid.
No loan should be given in respect of properties meant for residential use but which the
applicant intends to use for commercial purposes and declares so while applying for loan.
An undertaking to be taken from the borrower that the land/plot shall be used only for residential
purpose.
22. GENERAL: While financing housing projects, if any need arises for obtaining a
particular type of agreement, the same may be got approved by legal retainer locally
available in consultation with respective Circle Head, and if necessary, by Law Division ,
HO New Delhi.
23. Criteria for approval of private builders/projects, directives of High Court of Delhi,
Guidelines for entrusting work to Advocates/ Valuers, Risk weight on Housing loan,
Classification of Housing loans as Priority sector, Direct Housing Finance, Indirect
Housing Finance and other related guidelines issued by RBI, Existing rate of Interest from
01.07. 2000 onwards, Illustrative checklist, Documents and EMI chart are available as at
Annexure A, B, C, D, E, F, G, H and I, respectively.
**********
ANNEXURE- A
ii. Circle Heads & above to accord: Approval of Projects, which have been approved by any
of the 4 Banks / institutions namely SBI, HDFC, LICHFL & PNBHFL, based on their
stand alone sanction letters. The approval be accorded subject to compliance of
following conditions that:
a) Approval is within a period of six months from the date of approval of project by any of the
above Bank/ institution;
b) The visit to the project site has been undertaken by the Bank officials and visit report is
held on record;
c) Nothing adverse has been observed about the project while approving the same.
Also, COPIES OF PAPERS submitted to any of the above specified banks/FIs such
as Site Plan duly approved from competent development authority, title deed, legal
search report be obtained.
iii. Approval of projects of builders based on track record of the promoters and projects
executed where builders create Special Purpose Vehicle (SPV) for each project. The
approval shall be subject to ensuring verification of credentials/ Balance-sheet of the
Parent company.
iv. Approval of upcoming townships in their command area. However, such an approval may
be ensured before start of first round of booking / launch of project by strictly following
guidelines, as per details available under Para C below.
v. And treat all the projects financed by the Bank under exclusive, multiple or consortium
arrangement as approved projects for financing under Housing Loan Scheme for
Public. For such projects, no further assessment/ approval shall be required to be done
by approving authority.
C. As regards approval for all other under construction Projects of private builders, Circle
Head to approve the same as per criteria detailed below:
For approval of private builder by Circle Head
S.N. Criteria Suggested documents
i. Establishment should be for the last Annual report of the relevant
three years period, registration paper.
ii. Minimum experience should be of Past project reports & annual
five years in this line report (for 5 years).
iii. Should have completed successfully Past project report, personal
at least two major building projects visit to project sites
D. Branch Incumbent in scale of SMG- IV & above/ Circle Head & above has been vested
the power to consider approval of a specific flat/house after taking suitable security/ third
party guarantee acceptable to the Bank in the under-construction project of the
unapproved private builder on a standalone basis taking into considerations the specific
merits and the value of the account of the prospective housing loan borrowers in highly
deserving cases, subject to compliance of all other terms & conditions of the Scheme.
i. In cases where the applicant owns a plot/land and approaches the banks/FIs for a credit
facility to construct a house, a copy of the sanctioned plan by competent authority in the
name of a person applying for such credit facility must be obtained by the Banks/FIs
before sanctioning the home loan.
ii. An affidavit-cum-undertaking must be obtained from the person applying for such credit
facility that he shall not violate the sanctioned plan, construction shall be strictly as per the
sanctioned plan and it shall be the sole responsibility of the executants to obtain
completion certificate within three months of completion of construction, failing which the
Bank shall have the power and the authority to recall the entire loan with interest, costs
and other usual bank charges.
iii. An Architect appointed by the Bank must also certify at various stages of construction of
building that the construction of the building is strictly as per sanctioned plan and shall
also certify at a particular point of time that the completion certificate of the building
issued by the competent authority has been obtained.
i. In cases where the applicant approaches the bank/FIs for a credit facility to purchase the
built up house/flat, it should be mandatory for him to declare by way of an affidavit-cum-
undertaking that the built up property has been constructed as per the sanctioned plan
and/or building bye-laws and as far as possible has a completion certificate also.
ii. An Architect/Valuer appointed by the Bank must also certify before disbursement of the
loan that the built up property is strictly as per sanctioned plan and/or building bye-laws.
b) In addition to above, the valuer shall also be required to perform the following work in
cases of construction of houses/flats:-
i. Check the estimate submitted by the applicant keeping in view location of the project and
rates prevailing in the market for construction material and confirms genuineness;
ii. Verify the compliance of various requirements for implementation of the project such as
approval of map, permission of an authority required to implement the project and give
necessary report/confirmation pertaining thereto;
iii. Give a certificate at various stages of construction (but necessarily at initial stage, plinth
level and on completion) that the construction is strictly as per the sanctioned plan.
c) Fee structure for valuation of property, as prescribed vides Recovery Division Circular
No. 11/2016 dated 03.03.2016 followed by other subsequent relevant circulars issued
from time to time.
Circle Offices will approve the advocates and shortlist the panel of 4-5 advocates
exclusively for the Housing Loans processing related work. The advocates shall be
required to do the following job:
(i) Verification of the Income tax return from the Income Tax Department. Verification of
Salary certificate from the employers office.
(ii) Compliance of guidelines with regard to verification of genuineness of the title deeds and
obtention of search report in respect of non-encumbrance of the property as circulated
vide Law Division Circular No. 07/2014 dated 30.01.2014 regarding Investigation of Title
& Search Report and subsequent circulars issued from time to time.
(iii) Verification having filed the deed of apartment in case the property is sold by way of
apartments by the promoter and its contents. Verification of the certified copy of the deed
of apartment with the original, kept with the promoter. Verification of the endorsement on
the certified copy of deed of apartment and the bye laws of the association of apartment
owners. Verification of completion of the apartment, name of the occupant of the flat and
capacity under which he/she is residing in the flat.
(iv) Verification of execution of tripartite agreement by private builder/ authority/ society.
i. Advocate must be in the approved list of the Circle Office, having practice of not less than
five years.
ii. Fee Structure The fee to be charged form the borrower and paid to the advocate for the
aforesaid assigned work fee structure circulated by Law Division, HO vide Law Div. Cir.
No. 12/2014 dated 30.01.2014 and subsequent circulars issued from time to time.
1.3 The Advocate also to give consent/undertaking to the effect that the Bank will be free to
take appropriate legal action including filing/lodging complaint to the professional body, if
there is any misconduct on the part of the advocate or information submitted by advocate
to the Bank is found incorrect/false, without prejudice to Banks right to delist/de-panel the
advocate from its panel.
1.4 Recovery Division has circulated the list of empanelled Valuers for 2016-17 vide circular
No. 11/2016 dated 03.03.2016. Also, Circle Offices are advised to prepare the list of
advocates/ professionals and circulate the same to the branches/RAPCs working under
their respective jurisdiction for utilization of their services for performance of housing loan
processing related work, as specified above. The professionals be given a time period of
3 working days to complete the assigned job and submit the report in each case. The
applicant borrower found otherwise eligible for sanction of loan be given in principal
sanction only after he/she deposits the charges/fee payable to professionals, along with
the undertaking that these charges/fee will not be refunded in case any document
submitted by him/her is found deficient in any manner. Upfront fee/documentation
charges will be levied as per extant guidelines.
ANNEXURE- D
LTV ratio should be computed as a percentage with total outstanding in the account
(Principal + Accrued Interest +Other Charges pertaining to the loan without any netting)
in the numerator and the realizable value of the residential property mortgaged to the
bank, exclusive of stamp duty, registration and other documentation charges, as per Bank
record, in the denominator.
1.1 All other claims secured by residential property would attract the higher of the risk weight
applicable to the counterparty or to the purpose for which the Bank has extended finance.
ANNEXURE- E
1.1 (i) Loans to individuals up to Rs 28 lakh in metropolitan centres (with population of ten
lakh and above) and loans up to Rs 20 lakh in other centres for purchase/construction of
a dwelling unit per family provided the overall cost of the dwelling unit in the metropolitan
centre and at other centres should not exceed Rs 35 lakh and Rs 25 lakh, respectively.
The housing loans to banks own employees will be excluded. As housing loans which are
backed by long term bonds are exempted from ANBC, banks should either include such
housing loans to individuals up to Rs 28 lakh in metropolitan centres and Rs 20 lakh in
other centres under priority sector or take benefit of exemption from ANBC, but not both.
(ii) Loans for repairs to damaged dwelling units of families up to Rs 5 lakh in metropolitan
centres and up to Rs 2 lakh in other centres.
(iii) Bank loans to any governmental agency for construction of dwelling units or for slum
clearance and rehabilitation of slum dwellers subject to a ceiling of Rs 10 lakh per
dwelling unit.
(iv) The loans sanctioned for housing projects exclusively for the purpose of construction of
houses for economically weaker sections and low income groups, the total cost of which
does not exceed Rs 10 lakh per dwelling unit. For the purpose of identifying the
economically weaker sections and low income groups, the family income limit of Rs 2 lakh
per annum, irrespective of the location, is prescribed.
(v) Bank loans to Housing Finance Companies (HFCs), approved by NHB for their refinance,
for on-lending for the purpose of purchase/construction/reconstruction of individual
dwelling units or for slum clearance and rehabilitation of slum dwellers, subject to an
aggregate loan limit of Rs 10 lakh per borrower.
The eligibility under priority sector loans to HFCs is restricted to five percent of the
individual banks total priority sector lending, on an ongoing basis. The maturity of bank
loans should be co-terminus with average maturity of loans extended by HFCs. Banks
should maintain necessary borrower-wise details of the underlying portfolio.
(vi) Outstanding deposits with NHB (National Housing Board) on account of priority sector
shortfall.
2. VARIOUS REGULATIONS: While extending housing finance, it be ensured that bank
credit is used for production, constructions activities and not for activities connected with
speculation in real estate.
(i) Banks may grant loans to individuals for purchase/construction of dwelling unit per family
and loans given for repairs to the damaged dwelling units of families.
(ii) Bank may extend finance to a person who already owns a house in town/village where he
resides, for buying/ constructing a second house in the same or other town/ village for the
purpose of self occupation.
(iii) Bank may extend finance for purchase of a house by a borrower who proposes to let it
out on rental basis on account of his posting outside the headquarters or because he has been
provided accommodation by his employer.
(iv) Bank may extend finance to a person who proposes to buy an old house where he is
presently residing as a tenant.
(v) Banks may finance for construction meant for improving the conditions in slum areas for
which credit may be extended directly to the slum-dwellers on the guarantee of the Government,
or indirectly to them through the State Governments.
(vi) Bank may provide credit for slum improvement schemes to be implemented by Slum
Clearance Boards and other public agencies.
(a) Banks may consider requests for additional finance within the overall ceiling for carrying
out alterations/ additions/repairs to the house/flat already financed by them.
(b) In the case of individuals who might have raised funds for construction/ acquisition of
accommodation from other sources and need supplementary finance, banks may extend such
finance after obtaining paripassu or second mortgage charge over the property mortgaged in
favour of other lenders and/or against such other security, as they may deem appropriate.
(viii) Bank finance should, however, not be granted for the following:
(a) Banks should not grant finance for construction of buildings meant purely for
Government/Semi-Government offices, including Municipal and Panchayat offices. However,
banks may grant loans for activities, which will be refinanced by institutions like NABARD.
(b) Projects undertaken by public sector entities which are not corporate bodies (i.e. public
sector undertakings which are not registered under Companies Act or which are not
Corporations established under the relevant statute) may not be financed by banks. Even in
respect of projects undertaken by corporate bodies, as defined above, banks should satisfy
themselves that the project is run on commercial lines and that bank finance is not in lieu of or to
substitute budgetary resources envisaged for the project. The loan could, however, supplement
budgetary resources if such supplementing was contemplated in the project design. Thus, in the
case of a housing project, where the project is run on commercial lines, and the Government is
interested in promoting the project either for the benefit of the weaker sections of the society or
otherwise, and a part of the project cost is met by the Government through subsidies made
available and/or contributions to the capital of the institutions taking up the project, the bank
finance should be restricted to an amount arrived at after reducing from the total project cost the
amount of subsidy/capital contribution receivable from the Government and any other resources
proposed to be made available by the Government.
(c) Banks had, in the past, sanctioned term loans to Corporations set up by Government like
State Police Housing Corporation, for construction of residential quarters for allotment to
employees where the loans were envisaged to be repaid out of budgetary allocations. As these
projects cannot be considered to be run on commercial lines, it would not be in order for banks
to grant loans to such projects.
(a) In view of the need to increase the availability of land and house sites for increasing the
housing stock in the country, banks may extend finance to public agencies and not private
builders for acquisition and development of land, provided it is a part of the complete project,
including development of infrastructure such as water systems, drainage, roads, provision of
electricity, etc. Such credit may be extended by way of term loans. The project should be
completed as early as possible and, in any case, within three years, so as to ensure quick re-
cycling of bank funds for optimum results. If the project covers construction of houses, credit
extended therefore in respect of individual beneficiaries should be on the same terms and
conditions as stipulated for financing the beneficiary directly.
(b) Banks should have a Board approved policy in place for valuation of properties including
collaterals accepted for their exposures and that valuation should be done by professionally
qualified independent valuers.
(c) As regards the valuation of land for the purpose of financing of land acquisition as also
land secured as collateral, banks may be guided as under:
(i) Banks may extend finance to public agencies and not to private builders for acquisition
and development of land, provided it is a part of the complete project, including development of
infrastructure such as water systems, drainage, roads, provision of electricity, etc. In such limited
cases where land acquisition can be financed, the finance is to be limited to the acquisition price
(current price) plus development cost. The valuation of such land as prime security should be
limited to the current market price.
(ii) Wherever land is accepted as collateral, valuation of such land should be at the current
market price only.
(II) Lending to Housing Finance Institutions Banks may grant term loans to housing finance
institutions taking into account (long-term) debt-equity ratio, track record, recovery performance
and other relevant factors including the other applicable regulatory guidelines.
(III) Lending to Housing Boards and Other Agencies Banks may extend term loans to state
level housing boards and other public agencies. However, in order to develop a healthy housing
finance system, while doing so, the banks must not only keep in view the past performance of
these agencies in the matter of recovery from the beneficiaries but they should also stipulate that
the Boards will ensure prompt and regular recovery of loan installments from the beneficiaries.
(a) In view of the important role played by professional builders as providers of construction
services in the housing field, especially where land is acquired and developed by State Housing
Boards and other public agencies, commercial banks may extend credit to private builders on
commercial terms by way of loans linked to each specific project.
(b) Banks however, are not permitted to extend fund based or non-fund based facilities to
private builders for acquisition of land even as part of a housing project.
(c) The period of credit for loans extended by banks to private builders may be decided by
banks themselves based on their commercial judgment subject to usual safeguards and after
obtaining such security, as banks may deem appropriate.
(d) Such credit may be extended to builders of repute, employing professionally qualified
personnel. It should be ensured, through close monitoring, that no part of such funds is used for
any speculation in land.
(e) Care should also be taken to see that prices charged from the ultimate beneficiaries do
not include any speculative element that is, prices should be based only on the documented
price of land, the actual cost of construction and a reasonable profit margin.
(a) In order to enhance the flow of resources to housing sector, term loans may be granted
by banks to housing intermediary agencies against the direct loans sanctioned/ proposed to be
sanctioned by the latter, irrespective of the per borrower size of the loan extended by these
agencies.
(b) Banks can grant term loans to housing intermediary agencies against the direct loans
sanctioned/proposed to be sanctioned by them to Non-Resident Indians also. However, banks
should ensure that housing finance intermediary agencies being financed by them are
authorised by RBI to grant housing loans to NRIs as all housing finance intermediaries are not
authorised by RBI to provide housing finance to NRIs.
(c) Banks have freedom to charge interest rates to housing intermediary agencies without
reference to Benchmark Prime Lending Rates (BPLR) upto June 30, 2010. Under the Base Rate
System effective from July 1, 2010, all categories of loans will be priced with reference to Base
Rate which is the minimum interest rate for all loans. Under the Marginal Cost of Fund based
Lending Rate (MCLR) System effective from April 1, 2016, all categories of loans will be priced
with reference to MCLR which is the minimum interest rate for all loans.
(a) the builder / developer / company would disclose in the Pamphlets / Brochures etc., the
name(s) of the bank(s) to which the property is mortgaged.
(b) the builder / developer / company would append the information relating to mortgage
while publishing advertisement of a particular scheme in newspapers / magazines etc.
(c) the builder / developer / company would indicate in their pamphlets / brochures, that they
would provide No Objection Certificate (NOC) / permission of the mortgagee bank for sale of
flats / property, if required.
(d) Banks are advised to ensure compliance of the above terms and conditions and funds
should not be released unless the builder/developer/company fulfils the above requirements.
(e) The above mentioned provisions will be mutatis-mutandis, applicable to Commercial Real
Estate also.
Rate of Interest for the first time linked with Tenor of Repayment and borrower given the
option to choose between FIXED or FLOATING Rate of Interest.
5. 1.5.2002 to 8.8.2002
FIXED OPTION
Tenor Rate of Interest @ percent p.a.
For loans repayable in/upto
i) upto 0-5 years 11.00%
ii)Above 5 & upto 20 years 12.00%
iii) Above 20 years & upto 25 years 13.00%
FLOATING OPTION
Tenor Rate of Interest @ percent p.a.
For loans repayable in/upto
i) upto 0-5 years 10.75%
ii)Above 5 & upto 20 years 11.00%
iii) Above 20 & upto 25 years 12.00%
6. 9.8.2002 to 13.11.2002
FIXED OPTION
Tenor Rate of Interest @ percent p.a.
For loans repayable in/upto
i) upto 0-5 years 10.75%
ii)Above 5 & upto 20 years 11.50%
iii) Above 20 years & upto 25 years 12.00%
FLOATING OPTION
Tenor Rate of Interest @ percent p.a.
For loans repayable in/upto
i) upto 0-5 years 10.25%
ii)Above 5 & upto 20 years 10.50%
iii) Above 20 years & upto 25 years 11.00%
7. 14.11.2002 TO 31.12.2002
FIXED OPTION
Tenor Rate of Interest @ percent p.a.
For loans repayable in/upto
i) upto 0-5 years 9.75%
ii)Above 5 & upto 20 years 10.50%
iii) Above 20 years & upto 25 years 11.00%
FLOATING OPTION
Tenor Rate of Interest @ percent p.a.
For loans repayable in/upto
i) upto 0-5 years 9.25%
ii)Above 5 & upto 20 years 9.75%
iii) Above 20 years & upto 25 years 10.25%
FLOATING OPTION
Tenor Rate of Interest @ percent p.a.
For loans repayable in/upto
i) upto 0-5 years 8.75%
ii)Above 5 & upto 10 years 9.50%
iii) Above 10 years & upto 20 years 9.75%
iv) Above 20 yrs. & upto 25 yrs. 10.25%
9. 10.2.2003 TO 20.7.2003
FIXED OPTION
Tenor Rate of Interest @ percent p.a.
For loans repayable in/upto
i) upto 0-5 years 9.25%
ii)Above 5 & upto 10 years 10.25%
iii) Above 10 years & upto 20 years 10.50%
iv) Above 20 yrs. & upto 25 yrs. 11.00%
FLOATING OPTION
Tenor Rate of Interest @ percent p.a.
For loans repayable in/upto
i) upto 0-5 years 8.50%
ii)Above 5 & upto 10 years 9.00%
iii) Above 10 years & upto 20 years 9.50%
iv) Above 20 yrs. & upto 25 yrs. 10.00%
FLOATING OPTION
Tenor Rate of Interest @ percent p.a.
For loans repayable in/upto
i) upto 0-5 years 8.00%
ii)Above 5 & upto 10 years 8.75%
iii) Above 10 years & upto 20 years 9.25%
iv) Above 20 yrs. & upto 25 yrs. 9.75%
FIXED OPTION:
Rate of Interest @ Percent p.a.
TENOR
NO CHANGE
For loans repayable in/upto
i) Upto 5 years 9.25
ii) Above 5 & upto 10 years 10.25
iii) Above 10 & upto 20 years 10.50
iv) Above 20 yrs & upto 25 years 11.00
FLOATING OPTION:
@ Percent p.a.
TENOR
For loans repayable in/upto RATE OF INTEREST
7.75
i) Upto 5 years 8.00
ii) Above 5 & upto 10 years 8.25
iii) Above 10 & upto 20 years 9.00
iv) Above 20 yrs & upto 25 years
FIXED OPTION:
Rate of Interest @ Percent p.a.
TENOR
NO CHANGE
For loans repayable in/upto
i) Upto 5 years 9.25
ii) Above 5 & upto 10 years 10.25
iii) Above 10 & upto 20 years 10.50
iv) Above 20 yrs & upto 25 years 11.00
FLOATING OPTION:
FIXED OPTION:
@ Percent p.a.
TENOR
RATE OF INTEREST
For loans repayable in/upto
i) Upto 5 years 9.75
ii) Above 5 & upto 10 years 10.75
iii) Above 10 & upto 20 years 11.00
iv) Above 20 yrs & upto 25 years 11.50
FLOATING OPTION:
@ Percent p.a.
TENOR
For loans repayable in/upto
RATE OF INTEREST
i) Upto 5 years 8.25
ii) Above 5 & upto 10 years 8.50
iii) Above 10 & upto 20 years 8.75
iv) Above 20 yrs & upto 25 yrs. 9.50
FIXED OPTION:
FLOATING OPTION
@ Percent p.a.
TENOR
For loans repayable in/upto
RATE OF INTEREST
i) Upto 5 years 8.75
ii) Above 5 & upto 10 years 9.00
iii) Above 10 & upto 20 years 9.25
iv) Above 20 yrs & upto 25 yrs. 9.75
FIXED OPTION
@ Percent p.a.
TENOR
For loans repayable in/upto
RATE OF INTEREST
i) Upto 5 years 10.25
ii) Above 5 & upto 10 years 11.00
iii) Above 10 & upto 20 years 11.25
iv) Above 20 yrs & upto 25 yrs. 11.75
FLOATING OPTION:
TENOR @ Percent p.a.
For Loans repayable in / upto
RATE OF INTEREST
i) Upto 5 years 9.00
ii) Above 5 & upto 10 years 9.25
iii) Above 10 & upto 20 years 9.50
iv) Above 20 yrs & upto 25 yrs. 10.00
16. PERIOD FROM 07.05.2007 to 29.02.2008
FIXED OPTION:
FLOATING OPTION:
TENOR For loan amount upto 20 For loan amount above
For Loans repayable in / upto lacs 20 lacs.
FIXED OPTION:
TENOR For loan amount upto 20 For loan amount above
lacs 20 lacs
For Loans repayable in / upto
i) Upto 5 years 10.25 10.75
ii) Above 5 & upto 10 years 11.00 11.50
iii) Above 10 & upto 20 years 11.25 11.75
iv) Above 20 yrs & upto 25 yrs. 11.75 12.25
FLOATING OPTION:
TENOR For loan amount upto 20 For loan amount above
lacs 20 lacs
For Loans repayable in / upto
i) Upto 5 years 9.00 9.50
ii) Above 5 & upto 10 years 9.25 9.75
iii) Above 10 & upto 20 years 9.50 10.00
iv) Above 20 yrs & upto 25 yrs. 10.00 10.50
FIXED OPTION:
TENOR For loan amount upto For loan amount above
20 lacs 20 lacs
For Loans repayable in / upto
i) Upto 5 years 10.75 11.25
ii) Above 5 & upto 10 years 11.50 12.00
iii) Above 10 & upto 20 years 11.75 12.25
iv) Above 20 yrs & upto 25 yrs. 12.25 12.75
FLOATING OPTION:
TENOR For loan amount upto For loan amount above
20 lacs 20 lacs
For Loans repayable in / upto
i) Upto 5 years 9.50 10.00
ii) Above 5 & upto 10 years 9.75 10.25
iii) Above 10 & upto 20 years 10.00 10.50
iv) Above 20 yrs & upto 25 yrs. 10.50 11.00
19. PERIOD FROM 01.08.2008 to 15.10.2008 (Ref. L&A Cir. 111/08 dt. 31.07.08)
FIXED OPTION:
TENOR For loan amount upto For loan amount above
20 lacs 20 lacs
For Loans repayable in / upto
i) Upto 5 years 11.50 12.50
ii) Above 5 & upto 10 years 12.00 12.50
iii) Above 10 & upto 20 years 12.25 12.75
iv) Above 20 yrs & upto 25 yrs. 12.50 13.00
FLOATING OPTION:
TENOR For loan amount upto For loan amount above
20 lacs 20 lacs
For Loans repayable in / upto
i) Upto 5 years 10.00 11.00
ii) Above 5 & upto 10 years 10.50 11.00
iii) Above 10 & upto 20 years 10.75 11.25
iv) Above 20 yrs & upto 25 yrs. 11.00 11.50
20. PERIOD FROM 16.10.2008 to 31.12.2008 (Ref. L&A Cir. 163 & 165/08 dt. 15.10.08 & 182/08
dt. 27.09.08)
FIXED OPTION:
TENOR For loan amount upto For loan amount above
20 lacs 20 lacs
For Loans repayable in / upto
i) Upto 5 years 11.00 12.00
ii) Above 5 & upto 10 years 11.50 12.00
iii) Above 10 & upto 20 years 11.75 12.25
iv) Above 20 yrs & upto 25 yrs. 12.00 12.50
FLOATING OPTION:
TENOR For loan amount upto For loan amount above 20
For Loans repayable in / upto 20 lacs lacs
FIXED OPTION:
TENOR For loan amount upto For loan amount above 20
20 lacs lacs
For Loans repayable in / upto
i) Upto 5 years 9.25 10.25
ii) Above 5 & upto 10 years 10.25 10.50
iii) Above 10 & upto 20 years 10.75 11.00
iv) Above 20 yrs & upto 25 yrs. 11.25 11.50
FLOATING OPTION:
TENOR For loan amount upto For loan amount above 20
For Loans repayable in / upto 20 lacs lacs
i) Upto 5 years 9.00 10.00
ii) Above 5 & upto 10 years 9.50 10.00
iii) Above 10 & upto 20 years 9.75 10.25
iv) Above 20 yrs & upto 25 yrs. 10.00 10.50
22. PERIOD FROM 01.02.2009 TO 30.04.2009 (Ref. L&A Cir. 17/09 dt. 31.01.09)
For loans repayable in/upto Upto Rs.20 lac More than Rs.20 lac
FLOATING OPTION
i) Upto 5 years 9.00 9.75
ii) Above 5 & upto 10 years 9.25 9.75
iii) Above 10 & upto 20 years 9.50 10.00
iv) Above 20 & upto 25 years 9.75 10.25
FIXED OPTION
i) Upto 5 years 9.25 10.00
ii) Above 5 & upto 10 years 10.00 10.25
iii) Above 10 & upto 20 years 10.50 10.75
iv) Above 20 & upto 25 years 10.75 11.00
23. PERIOD FROM 01.05.2009 TO 30.06.2010 (Ref. L&A Cir. 57/09 dt. 30.04.09)
For loans repayable in/upto Upto Rs.20 lac More than Rs.20 lac
FLOATING OPTION
i) Upto 5 years 8.75 9.50
ii) Above 5 & upto 10 years 9.00 9.50
iii) Above 10 & upto 20 years 9.25 9.75
iv) Above 20 & upto 25 years 9.50 10.00
FIXED OPTION
i) Upto 5 years 9.25 10.00
ii) Above 5 & upto 10 years 10.00 10.25
iii) Above 10 & upto 20 years 10.50 10.75
iv) Above 20 & upto 25 years 10.75 11.00
24. PERIOD FROM 01.07.2010 TO 30.09.2010 (BR: 8.00%) (Ref. L&A Cir. 65/10 & 74/10)
25. PERIOD FROM 01.10.2010 TO 12.12.2010 (BR: 8.50%) (Ref. L&A Cir. 109/10 & 113/10)
26. PERIOD FROM 13.12.2010 TO 31.12.2010 (BR: 9.00%) (Ref. L&A Cir. 132/10)
FLOATING RATE
FLOATING RATE
Upto Rs30 lac > Rs30 lac < Rs.75 Rs.75 lacs and above
lacs
Upto 5 years BR+0.50 BR+1.25 BR+1.50
>5 upto 10 yrs BR+0.75 BR+1.50 BR+1.75
Above 10 & upto 15 yrs BR+0.75 BR+1.50 BR+1.75
Above 15 & upto 20 yrs BR+1.00 BR+1.75 BR+2.00
v) Above 20 yrs & upto 25 yrs. BR+1.00 BR+1.75 BR+2.00
FIXED RATE
Interest on fixed rate Housing Loan shall be fixed as under:-
The fixed rates shall be fixed at rates, higher by a fixed spread as compared to that of floating
rate of similar tenor and shall be made fixed for 5 years. At the time of each reset after 5 years,
the fixed rate shall be fixed at a rate, which should be higher by the same spread over the
floating rate applicable on the date of reset for the original tenor. At present, the spread has
been fixed at 50 bps.For example the fixed rate on a loan of upto Rs.30 lac with tenor of 20
years shall be the prevailing floating rate (BR+1.00%) plus 0.50% (50bps) i.e. (9.00%+1.00%)
+0.50%=10.50%.
28. PERIOD FROM 01.02.2011 TO 04.05.2011 (BR: 9.50%) (Ref. L&A Cir. 11/11)
FLOATING RATE
FLOATING RATE
Upto Rs30 lac > Rs30 lac < Rs.75 lacs Rs.75 lacs and
above
Upto 5 years BR+0.50 BR+1.25 BR+1.50
>5 upto 10 yrs BR+0.75 BR+1.50 BR+1.75
Above 10 & upto 15 yrs BR+0.75 BR+1.50 BR+1.75
Above 15 & upto 20 yrs BR+1.00 BR+1.75 BR+2.00
v) Above 20 yrs & upto 25 yrs. BR+1.00 BR+1.75 BR+2.00
FIXED RATE
Interest on fixed rate Housing Loan shall be fixed as under:-
The fixed rates shall be fixed at rates, higher by a fixed spread as compared to that of floating
rate of similar tenor and shall be made fixed for 5 years. At the time of each reset after 5 years,
the fixed rate shall be fixed at a rate, which should be higher by the same spread over the
floating rate applicable on the date of reset for the original tenor. At present, the spread has
been fixed at 50 bps.
For example the fixed rate on a loan of upto Rs.30 lac with tenor of 20 years shall be the
prevailing floating rate (BR+1.00%) plus 0.50% (50bps) i.e. (9.00%+1.00%) +0.50%=10.50%.
29. PERIOD FROM 05.05.2011 TO 31.07.2011 (BR: 10.00%) (Ref. L&A Cir. 40/11)
FLOATING RATE
FLOATING RATE
Upto Rs30 lac > Rs30 lac < Rs.75 lacs Rs.75 lacs and
above
Upto 5 years BR+0.50 BR+1.25 BR+1.50
>5 upto 10 yrs BR+0.75 BR+1.50 BR+1.75
Above 10 & upto 15 yrs BR+0.75 BR+1.50 BR+1.75
Above 15 & upto 20 yrs BR+1.00 BR+1.75 BR+2.00
v) Above 20 yrs & upto 25 yrs. BR+1.00 BR+1.75 BR+2.00
FIXED RATE
30. PERIOD FROM 10.06.2011 TO 31.07.2011 Under BPLR System (Ref. L&A Cir. 67/11)
31. PERIOD FROM 01.08.2011 TO 01.12.2011 (BR: 10.75%) (Ref. L&A Cir. 87/11 & 88/11)
Floating Rate
Under BPLR System Under Base Rate System
Above 30
Upto Rs Rs. 75 Lacs Above 30 Lacs to < Rs. 75 Lacs and
Lacs to < 75 Upto Rs30 lac
30 lac and Above 75 Lacs Above
Lacs
Upto 5 years 11.25% 12.00% 12.25% BR+0.50% BR+1.25% BR+1.50%
Above 5 &
11.50% 12.25% 12.50% BR+0.75% BR+1.50% BR+1.75%
upto 10 yrs
Above 10 &
11.50% 12.25% 12.50% BR+0.75% BR+1.50% BR+1.75%
upto 15 yrs
Above 15 &
11.75% 12.50% 12.75% BR+1.00% BR+1.75% BR+2.00%
upto 20 yrs
Above 20 &
11.75% 12.50% 12.75% BR+1.00% BR+1.75% BR+2.00%
upto 25 yrs
Under Fixed Rate Option Under BPLR System Under Base Rate System
Whenever an existing fixed rate housing loan disbursed The fixed rates shall be fixed at rates, higher by a fixed
under BPLR system, where reset clause is applicable, spread as compared to that of floating rate of similar
becomes due for reset, the same should be migrated to tenor under Base Rate System and shall be made fixed
Base Rate system and the rate of interest shall be fixed for 5 years. At the time of each reset after 5 years, the
at a rate as applicable to fixed rate loans under the Base fixed rate shall be fixed at a rate, which should be
rate system, depending upon the original tenor of the higher by the same spread over the floating rate
loan, on the date of reset and rate shall continue to be applicable on the date of reset for the original tenor. At
fixed till next applicable reset date.1 present, the spread has been fixed at 50 bps.
For example the fixed rate on a loan of upto Rs.30 lac
with tenor of 20 years shall be the prevailing floating
rate (BR+1.00%) plus 0.50% (50bps)
32. PERIOD FROM 02.12.2011 TO 30.04.2011 (BR: 10.75%) (Ref. L&A Cir. 121/11)
Floating Rate:
Under BPLR System Under Base Rate System
Above Rs.30 Rs. 75 Above Rs.30 Rs. 75
Upto Rs Upto Rs 30
Lacs to Lacs and Lacs to Lacs and
30 lacs lacs
<Rs.75 Lacs Above <Rs.75 Lacs Above
Upto 5 years 11.25% 12.00% 12.25% BR+0.50%
Above 5 &
11.50% 12.25% 12.50% BR+0.75% BR+1.00% BR+1.20%
upto 15yrs
Above 15 &
11.75% 12.50% 12.75% BR+1.00%
upto 25yrs
Fixed Rate:
Under BPLR System Under Base Rate System
Whenever an existing fixed rate housing loan The fixed rates shall be fixed at rates, higher by a
disbursed under BPLR system, where reset clause fixed spread as compared to that of floating rate of
is applicable, becomes due for reset, the same similar tenor under Base Rate System and shall be
should be migrated to Base Rate system and the made fixed for 5 years. At the time of each reset
rate of interest shall be fixed at a rate as applicable after 5 years, the fixed rate shall be fixed at a rate,
to fixed rate loans under the Base rate system, which should be higher by the same spread over
depending upon the original tenor of the loan, on the floating rate applicable on the date of reset for
the date of reset and rate shall continue to be fixed the original tenor. At present, the spread has been
till next applicable reset date. fixed at 50 bps.
For example the fixed rate on a loan of upto Rs.30
lac with tenor of 20 years shall be the prevailing
floating rate (BR+1.00%) plus 0.50% (50bps)
33. PERIOD FROM 01.05.2012 TO 02.09.2012 (BR: 10.50%) (Ref. L&A Cir. 27/12 & 28/12)
Floating rate:
Under BPLR System Under Base Rate System
Upto Rs 30 Above 30 Lacs to < Rs. 75 Lacs and Upto <Rs.75 Rs. 75 Lacs
lac 75 Lacs Above Lacs and Above
Upto 5 years 11.00% 11.75% 12.00%
Above 5 & upto BR+0.25% BR+0.50%
11.25% 12.00% 12.25%
15yrs
Above 15 & upto
11.50% 12.25% 12.50%
25yrs
Floating rate:
Under BPLR System Under Base Rate System
Upto Rs 30 Above 30 Lacs to < Rs. 75 Lacs and Upto <Rs.75 Rs. 75 Lacs
lac 75 Lacs Above Lacs and Above
Upto 5 years 11.00% 11.75% 12.00%
Above 5 & upto
11.25% 12.00% 12.25% BR% BR+0.25%
15yrs
Above 15 & upto
11.50% 12.25% 12.50%
25yrs
Floating rate:
Under BPLR System Under Base Rate System
Irrespective of amount and for
Upto Rs 30 Above 30 Lacs to < Rs. 75 Lacs and
repayment period upto 30
lac 75 Lacs Above
years
Upto 5 years 11.00% 11.75% 12.00% BR%
Above 5 & upto
11.25% 12.00% 12.25%
15yrs
Above 15 & upto
11.50% 12.25% 12.50%
25yrs
37. PERIOD FROM 01.04.2016 onwards: (Ref L&A Cir 26/2016 dated 31.03.2016)
Floating rate:
Under Base Rate Under MCLR System
Under BPLR System
System
Above 30 Irrespective of amount Irrespective of amount
Upto Rs Rs. 75 Lacs
Lacs to < 75 and for repayment and for repayment
30 lac and Above
Lacs period upto 30 years period upto 30 years
Upto 5 years 11.00% 11.75% 12.00%
Above 5 &
11.25% 12.00% 12.25% BR% MCLR+0.05%
upto 15yrs
Above 15 &
11.50% 12.25% 12.50%
upto 25yrs
Under Fixed Rate Option:
Under BPLR System Under Base Rate System Under MCLR System
Whenever an existing fixed rate The fixed rates shall be fixed at rates, The fixed rates shall be fixed at rates,
housing loan disbursed under higher by a fixed spread as compared to higher by a fixed spread as compared to
BPLR system, where reset clause that of floating rate of similar tenor under that of floating rate of similar tenor under
is applicable, becomes due for Base Rate System and shall be made fixed Base Rate System and shall be made fixed
for 5 years. At the time of each reset after for 5 years. At the time of each reset after
reset, the same should be
5 years, the fixed rate shall be fixed at a 5 years, the fixed rate shall be fixed at a
migrated to Base Rate system rate, which should be higher by the same rate, which should be higher by the same
and the rate of interest shall be spread over the floating rate applicable spread over the floating rate applicable
fixed at a rate as applicable to on the date of reset for the original tenor. on the date of reset for the original tenor.
fixed rate loans under the Base At present, the spread has been fixed at At present, the spread has been fixed at
rate system, depending upon the 50 bps. 50 bps.
original tenor of the loan, on the For example the fixed rate on a loan For example the fixed rate on a loan
date of reset and rate shall of Rs.75 lac with tenor of up to 30 of Rs.75 lac with tenor of up to 30
continue to be fixed till next years shall be the prevailing floating years shall be the prevailing floating
applicable reset date. rate (BR) plus 0.50% (50bps) rate (MCLR+0.05) plus 0.50% (50bps)
36. MARGINAL COST of FUND BASED LENDING RATE (MCLR) FOR ONE YEAR
ILLUSTRATIVE CHECKLIST OF DOCUMENTS: While applying for the loan, the borrower is
required to furnish the following information:
1. Loan application form duly completed with Photograph PNB 1054/2012;
2. Identity proof;
3. Address/Residence proof;
4. Age proof;
5. Educational qualification proof;
6. Income proof:
SALARIED CLASS: Latest Salary certificate issued by the employer (indicating gross
and net salary)/ Income tax Return, Bank Statement of salary account for last 6/12
months whichever is applicable;
AGRICULTURIST: Record of land holding & cropping pattern or any other proof of
income;
FOR ALL OTHER INDIVIDUALS: Last 3 yrs. Income Tax Return or assessment order
& computation of income statement, Bank Statement of account for last 6/12 months
whichever is applicable;
Income proof of spouse/earning children/joint borrowers whose income is considered
for the purpose of determination of loan amount (if applicable);
7. Property documents as per PROPERTY CHECK-LIST and affidavit-cum-undertaking
in terms of Delhi High Court Directives.
8. Undertaking of the borrower/co-borrower as to whether he/she owns residential property
in his/her name;
9. Any other document which may be necessary as per requirement of the case.
NOTE: THE ABOVE LISTS ARE SUGGESTIVE AND BRANCHES TO OBTAIN DOCUMENTS
AS PER LOCAL REQUIREMENTS.
ANNEXURE - H
6.1 In case of Govt. Deptt/Company/employer (first charge holder) is to have the custody of
the title deeds, then the letter appointing the pari passu/first charge holder as agent of the
bank to accept title deeds (Annexure VIII );
6.2 Letter of Pari Passu/first charge holder accepting the agency of the bank; (Annexure IX);
6.3 Letter of confirmation of deposit of title deeds by the borrower to the Pari Passu/First
Charge Holder under copy to the Bank (Annexure X);
6.4 Inter-se agreement on behalf of the pari passu charge/first charge holder and the
Bank.(Annexure XI);
6.5 Memorandum of Entry in the title deed registers (Annexure XII);
6.6 Letter of Ceding pari passu/second charge by the borrower from the first charge holder
(Annexure XV);
6.7 Tripartite Agreement in case of AGIF Members (Annexure XX).
6.8 Any other document which may be necessary as per requirement of the case.
NOTE: BESIDES ABOVE LISTED DOCUMENTS, ANY OTHER DOUCMENT AS PER LOCAL
REQUIREMENT OR CASE SPECIFIC IS TO BE OBTAINED INVARIABLY.
APPLICATION FORM for HOME LOAN
For office use only
Branch: ___________________
Personal Details
Co-Applicant
Information Applicant
Relation with Applicant: Parent Spouse Other
First Name
Middle Name
Last Name
Fathers/Husband's Name
Email address
__ __
Phone details (STD code Tel res.)
Mobile No.
Relative of Staff/ Director of bank? Yes No Yes No
Residential Address Applicant Co-Applicant
Residence Address* (Present)
Employment Nature Salaried Self employed Professional Other Salaried Self employed Professional Other
CA Doctor Engineer/Architect Lawyer CA Doctor Engineer/Architect Lawyer
If professional
Small/Marginal farmer Other agriculturist Other Small/Marginal farmer Other agriculturist Other
Nature of Organization Govt./PSU Public Ltd. Co. Pvt. Ltd. Govt./PSU Public Ltd. Co. Pvt. Ltd.
Proprietorship Partnership Other Proprietorship Partnership Other
Period in Current Employment/
Years Months Years Months
Business
Name of Organization/Business
Designation
Office Address
If Self Employed/Professional
FY1 (20__ - 20__) FY 1 (20__ - 20__)
Income in last 3 Financial
years*(Rs.) FY 2 (20__ - 20__) FY 2 (20__ - 20__)
(As per Income Tax Return) FY 3 (20__ - 20__) FY 3 (20__ - 20__)
If Salaried/Other
Gross Gross
Annual Income* (Rs.)
Net Net
IT assessee & paid tax last yr Earns but not formally IT assessee & paid tax last yr Earns but not formally
Spouse's financial information*
IT assessee but no tax paid Does not earn IT assessee but no tax paid Does not earn
Bank Account Details
Account I Account II Account I Account II
(Details of PNB a/c if applicable)
Name of Bank
Branch
Building/House
Land
Movable Properties
Cash
Deposits with banks
Investment in government
securities
Others
Total
*Supporting documents duly signed by the applicant should be attached
Statement of Assets and Liabilities (Contd.)*
Information Applicant Co-Applicant
Liabilities
Outstanding Loans/Advances Amount (Rs.) Amount (Rs.)
Bank(s)
Employer
Provident Fund
Relatives and Friends
Others
Total
Net Worth (Actual in Rs.)
(Assets-Liabilities)
Information about other Loans taken (including previous loans from PNB)
Total Loan Limit (Rs.)
Total Monthly Repayment (Rs.)
Whether Regular Yes No Yes No
Other Information
Information Applicant/Co-Applicant
Collateral security proposed Yes No
Type of collateral Property NSC/LIC Policy/Govt. Security Shares Others
If yes Value of collateral (Rs.)
Name
Address
I/We hereby request for a loan as above and declare that: The information given in the loan application is true and nothing has been concealed. The
undersigned undertakes to inform the Bank any change in my residence/office address and to provide any further information that the Bank may
require. The undersigned has been informed of the charges/fee to be levied by the Bank and agrees to pay upfront fee, documentation charges, etc. as
applicable ad charged by the bank. The undersigned hereby agree to be bound by these terms and conditions or by the revised additional terms and
conditions which may at any time hereafter be made while the loan obtained by me/us is still outstanding.
Yours faithfully,
Note: In case there is more than one co-applicant, he/she should fill up another form.
ENCLOSURE - 'A'
ADDITIONAL INFORMATION REQUIRED TO BE GIVEN IF THE LOAN IS REQUIRED FOR CONSTRUCTION OF A HOUSE OR FOR CARRYING OUT
REPAIRS/RENOVATION/ADDITION /ALTERATION TO THE HOUSE/FLAT
(* applicable only in case of carrying out repairs/renovation/addition /alteration to the house/flat)
Purchase price/acquisition cost of land:
1.
(Please attach attested copy of sale deed /lease deed)
Address, location & surroundings of the house/flat (a rough plan indicating
2.
the location and surroundings of the house should be attached)
ENCLOSURE - 'B'
ADDITIONAL INFORMATION REQUIRED TO BE GIVEN IF THE LOAN IS REQUIRED FOR PURCHASE OF A BUILT HOUSE / RESIDENTIAL
FLAT/UNDER CONSTRUCTION OR IF THE LOAN IS BEING TAKEN OVER FROM ANOTHER BANK/FI
Address, location and surroundings of the house proposed to be
1. purchased (Please attach a map/plan of the house)
Place:
Date: Signature of the applicant(s)
Recent Photograph
of Guarantor
Part II GUARANTOR INFORMATION
Pin: Country:
Address Current Residence Address* Permanent Address
Address
Financial Details
Information Guarantor
Is he/she an Income tax payee Yes No
Total Income in last 2 Financial FY 1 (20__ - 20__) FY 2 (20__ - 20__)
years (Rs.)
Bank Account Details (Existing customer should give details of PNB account)
Name of Bank Branch
A/c No. (details of salary a/c. for
salaried)
Employer Land
Note: In case there is more than one guarantor, he/she should fill up another form (Part-II Guarantor Information).
FOR OFFICE USE ONLY: BO ____________ _______________.
Legal Opinion
i) Name of approved Advocate :______________________________________________
ii) Date of NEC :______________________________________________
iii) Whether Counsel has given :______________________________________________
Clear and marketable title
Of the property
1. The borrower agrees to bear and pay any charge for switchover of the option in respect of rate of interest at
the rate as prescribed by the Bank from time to time.
2. That it will be the duty and responsibility of the borrower/s to obtain the necessary permission of the
Vendor/s and/or any authority/ lessor, if required, under any law, rules, regulations or any instrument to
create the security hereby agreed by him/her/them to be created in favour of the Bank and it will be open to
the Bank to refuse to disburse the loan.
3. The borrower/s undertake/s to take necessary steps to get the leasehold property converted into freehold
and get the conveyance/transfer deed executed and registered and bear all necessary expenses connected
therewith from his/her own sources.
4. The borrower/s hereby agree/s and give/s to the Bank during the currency and for the payment of said loan,
a general lien and right to set off and combine accounts without notice and charge on all movable properties
of every description coming into the possession on account of the borrower/s for the time being held by the
Bank on behalf of the borrower/s whether singly or jointly with others in India or elsewhere including, without
prejudice to the generality, any moneys, bullion, deposits, deposit receipts, promissory notes, bill of
exchange, cheques, railway receipts, Govt. bills and other documents of every description.
PNB 1054/2012
BO: ____________________________________
We are pleased to inform that we have sanctioned a Housing Loan of Rs. _________________in your
favour for ___________________________________ on the undernoted terms & conditions.
Sanction Terms
Sanctioned Amount
Rate of Interest
Type of Interest
Margin
Repayment Tenor
Number of EMIs Amt. of EMI* Rs.
Repayment to be commenced from
Amount of EMI
Upfront fee/ Processing fee Rs. Documentation Fee Rs.
Credit Information Report Charges
Security Guarantor (s)
Primary
Collateral
3. Please convey acceptance for having accepted the terms & conditions of the sanction.
Thanking you.
Yours truly,
For Punjab National Bank
Authorised Signatory
ANNEXURE-I
BETWEEN
Shri/Ms __________________________________________________son/daughter/wife of
Shri_____________________________________________________,resident of _________________
__________________________________ and Shri/Ms_________________________________
________________________________________son/daughter/wife of Shri ________________
________________________________________, resident of ____________________________
___________________________________ and (hereinafter referred to as the Borrower)
AND
Punjab National Bank, a body corporate, constituted under the Banking Companies (Acquisition &
Transfer of Undertakings) Act, 1970, having its Head Office at 7, Bhikhaiji Cama Place, New Delhi and,
amongst others, a Branch Office at ____________________________ (hereinafter referred to as the
Bank).
(The Borrower and the Bank are collectively referred to as the Parties and individually as the Party and
unless it be repugnant to the subject or context the term Borrower and Bank shall include their heirs,
legal representatives, successors, assigns, etc; The masculine gender is to be taken to include females;
The singular includes the plural and vice versa. The Borrower, in case there is more than one Borrower,
shall include each one of them and their liability shall be JOINT & SEVERAL and any acknowledgment of
debt made by any one shall bind all)
WHEREAS
C. On the request of the Borrower the Bank has agreed to advance a sum of Rs _____________
(Rupees_________________________) (the "Loan) to the Borrower for the said purpose on the
terms and conditions herein appearing.
i. The option of FIXED RATE OF INTEREST exercised by the Borrower will not be allowed to be
changed for a minimum period (Block Period) of ______ years, unless the Bank otherwise agrees,
on such terms & conditions, including payment of switching over charges by the Borrower, as
prescribed by the Bank.
ii. After completion of the each Block period, it is open to the Borrower to switch over from one
Interest Rate Option to the other. If no intimation of change of Option is received it shall be
presumed that the Borrower continues with his earlier exercised Option.
iii. In case the change of option is allowed by the Bank to the borrower from Fixed Rate to Floating
Rate, the rate of interest would be the prevailing floating rate at the time of change of option.
iv. The rate of interest under Fixed Rate Option shall be reviewed and re-set by the Bank on
completion of each Block Period. For this purpose 1st year of each Block Period will commence
from 1st of April of the year in which the first disbursement under the Loan is made, irrespective of
the month of disbursement, and shall end on 31st March of the following year. After completion of
each Block period, the interest rate as re-set will be applicable. If there is any delay in revision/re-
set in interest rate, appropriate adjustment will be made in the account, effective from 1st April of
the year. If the interest rate is not re-set, the prevailing rate shall continue to be applied until it is
re-set. If interest rate is not re-set in the year when it is due, it shall be open to Bank to re-set the
interest in any subsequent year and, in such an event, the interest rate as re-set, will be
applicable from 1st April of the year in which it is re-set for the remaining years of the block period.
4. Exercise of Option
(i) The Borrower hereby exercises the *Floating Interest Rate / Fixed Interest Rate Option and
agrees to pay pay interest at ...% as spread over _______ Marginal Cost of Funds Based
Lending Rate (MCLR) of the Bank, presently being ..%, (hereinafter referred to as the
Benchmark Rate) i.e ..% per ________ with _______ rests plus applicable interest tax, if
any. The _____________ MCLR will be changed from time to time by the Bank subject to the
reset of interest rate after an interval of ___________ months.
(ii) The interest shall be calculated on daily balance basis due to the Bank and shall be charged
monthly so long as the amount due is not repaid in its entirety and shall form part of the principal
and carry interest at the applicable interest rate.
(iii) The Spread may also change from time to time and the revised rate of interest shall accordingly
be charged from time to time.
(iv) Besides interest, applicable interest tax and incidental charges are also payable by the borrower.
5. Notwithstanding the above, if the Bank, on the request of the Borrower, in its discretion, decides
to make available to the Borrower the option of application of lower rate of interest, as may be
applicable to fresh loans under the Scheme, it is open to the Bank to charge and levy a
Switchover Fee at the rate prescribed by the Bank.
6. The Borrower agrees that the amount of the loan, together with interest, will be paid by the
Borrower regularly in equated monthly installments (EMI) of Rs.______(Rupees ___________)
each and the first such EMI shall fall due for payment on _____________. OR
Borrower has exercised option of Graduated EMI for repayment of the loan amount and agrees
that amount of loan together with interest and other charges, will be paid by the borrower regularly
in equated monthly installments of Rs.____________ (Rupees_____________-
____________________________) each for an initial period of __________ years and
subsequently in equated monthly installments of Rs.____________
(Rupees________________________________) each for remaining period of _________
years/till the loan account stands fully adjusted. The first of such EMI shall fall due for payment on
_______________.
7. The borrower understands that the amount of EMI shall be subject to change in accordance with
change/revision in applicable interest rate. The borrower shall have one of the following options to
exercise for repayment of the Loan
a) To pay the increased amount of the EMI; or
b) To continue to pay the existing amount of the EMI with the condition that the balance
outstanding in the Loan account shall be paid in one go with the last EMI of the originally
applicable repayment tenor; or
c) To prolong the repayment period.
7.1 In case no option is exercised by the Borrower on account of change in the applicable interest
rate affecting the EMI, the option, as given at (7.c) above, shall be deemed to have been
exercised by the Borrower.
8. *(i) The Borrower irrevocably authorizes the Bank to recover the amount of the EMI and other
charges from his SF/CA /OD Account no._____________( the said Account) maintained with the
said BO until the loan along with interest, charges, etc. is fully repaid and adjusted. The borrower
further undertakes to keep sufficient balance in the account for recovery of the EMI by the Bank.
*(ii) The Borrower agrees to authorize his employer to remit his salary to the Banks said BO for
crediting the same to his said account.
*(iii) The Borrower hereby deposits post-dated cheques to facilitate the due payment of the EMI as per
the Schedule-II hereunder.
*(iv) The Borrower is willing to make the payment of EMI, through participation in Electronic Clearing
Service (ECS) of the National Clearing Cell of RBI and authorizes the Bank to raise the debits
against the EMI from his account No.___________________ maintained at
BO:_______________ of _____________________Bank (Give name and address of the Bank)
through ECS for payment of the EMI and understands that in the event of the Bank not realizing
payment from ECS for any reason whatsoever, the Borrower shall pay the EMI to the Bank by
cash or cheque along with the interest for the delayed period. The Borrower has given the
necessary mandate and also bear any service charges/fees as prescribed by the Bank/RBI from
time to time.
8.1 To facilitate collection of the EMI in the event of non-receipt of the EMI by ECS, the Borrower has
provided the Bank with ______number of undated cheques for the amount of the EMI. The
Borrower authorizes the Bank to fill up the date as and when required, but without being bound, to
collect the cheques to meet defaults in payment of the EMI.
(*Delete, if not applicable)
9. The Borrower agrees to pay additional interest at______% p.a. with agreed rests in case of:
a) Non-payment of any installment of principal and/or interest, costs and other charges due, on the
amount in default from the date of default;
b) Default in Furnishing information as prescribed/called for by the Bank or any irregularity in a/c.
c) Diversion or siphoning of the Loan amount;
d) Default in creation of security within the stipulated time;
e) Non-compliance of any of the terms & conditions of this Agreement;
9.1 However, this right is in addition to and not in derogation of the Banks other rights to immediately
call upon the Borrower to repay the entire amount outstanding or to enforce the security and, in
the event of the Bank exercising its right to recall the Loan as aforesaid, the Borrower undertakes
that, irrespective of the period for which the Loan is made, the Borrower shall pay to the Bank
immediately after demand, whereby the recall is made, the balance then outstanding in the loan
account, together with interest and all other charges till liquidation of the dues under the loan.
The borrower agrees that in case the Loan is pre-paid by availing loan from any other bank/FI, the
Borrower will bear and pay the prepayment charges at ___% of the outstanding amount of the;
loan pre-paid and the Bank shall be entitled to seek information from the borrower about source of
pre-payment made or any other particulars in order to levy pre-payment charge and the borrower
agrees to furnish the information called for by the Bank. The Bank shall also be entitled, inter-alia,
to recover pre-payment charges by debiting any account of the borrower.
11. The Borrower undertakes not to raise any loan for the purpose and/or for his productive activity
from any institution other than the Bank.
12. The Borrower undertakes to create 1st charge by way of mortgage within ________ days on the
property described in Schedule-I hereunder to secure the repayment of the Loan after he gets the
conveyance of the Secured Asset in his favor as may be required by the Bank.
13. The Borrower agrees to execute an irrevocable Power of Attorney in favor of the Bank, as and
when required by the Bank, as per the Performa annexed with this Agreement.
14. In case of loan given for the purchase/acquisition of house/flat from Development Authority/
Housing Board/Private Builders/Group Housing Society, the Bank shall not be responsible or
liable to ensure or ascertain the progress of construction and mere demand for payment would be
sufficient for the Bank to effect disbursements as aforesaid. Without prejudice to the above and
notwithstanding anything to the contrary contained herein, the Bank may in its sole discretion
refuse to disburse the loan and/or recall the entire outstanding dues, if the progress of the
construction work is not satisfactory and/or failure to pay margin by the borrower.
15. The Borrower shall get the security fully insured against loss, damage by fire, riots and other
hazards like earthquake, floods as per the requirements of the Bank in the joint name of the
Borrower and the Bank with the usual Bank clause till repayment of in full of the entire loan liability
of the Borrower. In case the Borrower fails to insure the said property, it will be open to the Bank
to get the same insured, without being bound to do so, as aforesaid and to debit the amount of
premium to the Borrowers account which shall thereupon be treated as part and parcel of the
principal amount advanced.
a) Upon any money becoming payable under the insurance policy, the same shall be paid by the
Insurance Company to the Bank and such part of any moneys so paid, as may relate to the
interest of other parties insured there-under, shall be received by the Bank as agent for such other
parties. And any sum received under such insurance shall be applied in or towards liquidation of
the amount due to the Bank and other parties on account of the said loan, interest and other
charges as aforesaid and in the event of there being a surplus; the same shall be refunded to the
Borrower.
b) The receipt by the Bank of insurance proceeds shall be a complete discharge of the insurance
company and shall be binding on all parties insured there under.
c) Any adjustment, settlement, compromise or reference to arbitrations in connection with any
dispute between the Insurance company and the insured or any of them arising under or in
connection with the policy shall be valid and binding on all parties insured there under, but not so
as to impair the right of the Bank to recover the full amount of any claim, it may have on other
parties insured there under.
16. It will be the duty and responsibility of the Borrower to obtain necessary permission of Vendor
and/or any Authority/ lessor, if required, under any law, rules, regulations or any instrument to
create the security, hereby agreed by him to be created in favour of the Bank and it will be open to
the Bank to refuse to disburse the loan until and unless the same is obtained and submitted to the
Bank.
17. The Borrower undertakes to take necessary steps to get the lease hold property converted into
free hold and get the conveyance/ transfer deed executed and registered and bear all necessary
expenses connected therewith from his sources.
18. The Borrower hereby agrees to hold himself liable on all the confirmation letters signed by anyone
of the borrowers and on all the accounts stated to any one of them. The Borrower agrees that
each one of them is agent for the others to acknowledge and admit liability outstanding in the
account from time to time.
19. The Borrower agrees and hereby gives to the Bank, during the currency and for the payment of
the Loan, a general lien and right to set off; and combine accounts without notice; and charge on
all movable property of every description coming into the Banks possession on account of the
Borrower for the time being held by the Bank, whether singly or jointly with others in India or
elsewhere including, without prejudice to the generality, any monies, bullion, deposits, deposit
receipts, promissory notes, bill of exchange, cheques, railway receipts, Govt. bills and other
documents/securities of every description.
20. Any demand herein may be made on the Borrower by an officer of the Bank or any notice in
writing under the hands of any such officer either served personally on the Borrower or left at or
sent by post to him at his address registered/available with the Bank.
21. The Borrower hereby consents that in case he commits default in repayment of the Loan, the
Bank/RBI can disclose his name in such manner and through such medium, as they deem fit. The
Borrower further consents for disclosure of his name by the Bank to any Credit Information
Company/Agency, as deemed fit.
SCHEDULE-I
(Description of the Property to be mortgaged)
SCHEDULE-II
1.
2.
3.
4.
5.
* Note: Advance cheques may be obtained under the Scheme. The number, amount and dates of
such cheques should be synchronized with the number, amount and due dates of term Loan
installments. Such cheques should be drawn favoring Punjab National Bank and on the reverse
of the cheques, payment of installment in term Loan account No. ____ can be written.
IN WITNESS WHEREOF, THE PARTIES HAVE SIGNED THESE PRESENTS ON THE DAY,
MONTH AND YEAR ABOVE MENTIONED.
(PNB 1121)
ANNEXURE II
MORTGAGE DEED
WHEREAS the Mortgagor/s is/are the absolute owner in possession of the properties fully
described in the schedule hereunder; and WHEREAS the mortgagee has advanced/agreed to
advance a sum of Rs. (Rupees
) by way of housing loan upon securing the repayment thereof
together with interest, cost and other charges in the manner as hereinafter appearing.
That the Mortgagor/s agree/s to keep fully insured for its full market value in the name of the
Mortgagor/s and the Mortgagee with agreed Bank clause, the said property against damage
and loss or destruction by fire, civil-commotion, riots, floods, earthquake and any other insurable
risk and keep up such insurance until the amount due under this deed is paid in full to the
mortgagee. The cost of insurance will be borne by the Mortgagor/s. In case the
Mortgagor/s fail/s at any time to insure and pay the necessary premium, the Mortgagee may but
it will not be bound to, insure and debit the cost of the premium to the Mortgagors account. The
amount of premium as paid will form part of the principal amount and will carry interest at the
rate applicable in respect of amount advanced.
That the Mortgagor/s shall also continue to pay all rates and taxes accruing due in respect of
the said property under any law or rule for the time being in force.
That the Mortgagor/s covenant/s that the property is free from all encumbrances and that the
Mortgagor/s is/are entitled to mortgage the same unto the Mortgage.
That the Mortgagor/s shall not lease out or part with possession of the property or create any
further charge, mortgage on the same in favour of any person without prior consent of the
Mortgagee in writing.
That in case of the default/breach of any of the terms and conditions contained in this Deed or
in the Loaning Documents executed by the Mortgagor/s, the Mortgagee shall have the option
and the right to realize all its due outstanding in the account and cause the mortgaged property
to be sold with all its accretions, without being bound to proceed against other securities or
sureties, if any held by the Mortgagee.
That on payment of all the dues of the said mortgagee under these presents, the mortgagee
shall be bound to recovery the said property free from all encumbrances to the Mortgagor/s and
execute deed of discharge/transfer and every other writing in favour of the Mortgagor/s at its
expense necessary for this purpose.
In witness whereof the Mortgagor/s and the Mortgagee have set their hands on the day, month
and the year hereinabove first written.
SCHEDULE
(Description of the property hereby mortgaged)
All that Plot No. situated at
(full address
of the house/flat/plot of land) ensuring and so
also the construction and superstructure to be built thereon together with all rights of
easements of all kinds appertinent thereto and bounded as given below;
North
South
East
West
WITNESSES: MORTGAGOR/S
1.
2. MORTGAGEE
PNB 1122
ANNEXURE III
BETWEEN
Shri/Ms._________________________________________________________________
__________ Son/Daughter/Wife of Shri
_______________________________________________________
r/o______________________________________________________________________
____ (hereinafter called the Borrower)
AND
Punjab National Bank, a body corporate constituted under the Banking Companies
(Acquisition & Transfer of Undertakings) Act 1970 having its Head Office at 7, Bhikhaiji
Cama Place, New Delhi and, inter alia, one of its branches at (hereinafter called the
Bank)
(The Borrower and the Bank are collectively referred to as the Parties and individually as
the Party and unless it be repugnant to the subject or context the term Borrower and the
Bank shall include their heirs, legal representatives, successors, assigns, etc; The
masculine gender is to be taken to include females; The singular includes the plural and
vice versa. The Borrower, in case there is more than one Borrower, shall include each
one of them and their liability shall be JOINT & SEVERAL and any acknowledgment of
debt made by any one shall bind all)
WHEREAS
A. The Borrower has entered into an Agreement of Sale dated_______ with Shri / Ms
______________________________ /Development Authority/ Housing Board/ Shri/
Ms. Son /Daughter / Wife of Shri
_______________________________________________
r/o____________________________________________________________________
(hereinafter called the Vendor) for purchasing from the Vendor a plot bearing
No._____________________ situated at___________________ and bounded as under:
North:
South:
East:
West:
Admeasuring ______ sq.fts/sq.yds./sq.mtrs for a consideration of Rs._________________
(Rupees__________________ ), on the terms and conditions contained in the
Agreement of Sale;
C. The Borrower is unable to pay the remaining sale price of Rs. _______________
(Rupees ________________________) and has approached the Banks BO at
________________ for a loan of Rs. _________________ (Rupees
________________________________ ) to enable him to purchase the said plot from the
Vendor; and
i. The Borrower agrees to pay interest under the Fixed Interest Rate Option at the rate as
prescribed and prevailing as on the date of this Agreement/at the time of exercise of the
Fixed Interest Rate Option.
ii. The option of FIXED RATE OF INTEREST exercised by the Borrower will not be allowed to
be changed for a minimum period of three years, unless the Bank otherwise agrees, on
conditions, including payment of switching over charges by the Borrower, as prescribed by
the Bank.
iii. In case the change of option is allowed by the Bank from the Fixed Rate to the Floating
Rate, the rate of interest would be the prevailing floating rate at the time of change of
option and thereafter at the rate as prescribed by the Bank from time to time.
iv. The option exercised by the Borrower shall be for a block period of three years (the
Block), as mentioned in (ii) above, unless the Bank otherwise agrees on conditions as
prescribed by the Bank. After completion of the Block it is open to the Borrower to switch
over from one Interest Rate Option to the other. If no intimation of change of Option is
received it shall be presumed that the Borrower continues with his earlier Option which the
Borrower is availing.
v. The rate of interest under this Option (Fixed Interest Rate Option) shall be reviewed and re-
set on completion of a Block of Five Years. For this purpose the 1st year of such Block of
Five Years is to commence on and from 1st of April of the year in which the first
disbursement under the Loan is made, irrespective of the month of disbursement, and shall
end on 31st March of the following year.
After completion of every Block of Five Years in the aforesaid manner, the interest rate as
re-set will be applied. If there is any delay in revision/re-set of the interest rate, appropriate
adjustment will be made in the account, effective from 1st April of the year. If the interest
rate is not re-set, the prevailing rate shall continue to be applied until it is re-set. If interest
rate is not re-set in the year when it is due, it shall be open to Bank to re-set the interest in
any subsequent year and in such an event, the interest rate as re-set, will be applicable
from 1st April of the year in which it is re-set for the remaining years of the block of five
years. The Bank alone has full discretion to fix/ prescribe/ revise/ re-set the rate of interest.
(ii) The option of the Floating Interest Rate exercised by the Borrower will not be allowed to be
changed for a minimum period of three years, unless the Bank otherwise agrees, on
conditions, including payment of switching over charges by the Borrower, as prescribed by
the Bank;
(iii) In case the change of option of the Interest Rate is allowed by the Bank the Fixed Interest
Rate would be the prevailing rate at the time of change of option; and
(iv) The option exercised by the Borrower shall be for the block period of three years as
mentioned in (ii) above, unless the Bank otherwise agrees on conditions as prescribed by
the Bank. After completion of each block of three years it is open to the Borrower to switch
over from one option to the other. If no intimation of change of option is received, it shall
be presumed that the Borrower continues with his earlier option which the Borrower is
availing.
2A (i) The Borrower exercises the *Floating Interest Rate / Fixed Interest Rate Option and
agrees to pay interest at ...% as spread over _______ Marginal Cost of Funds
Based Lending Rate (MCLR) of the Bank, presently being ..%, (hereinafter referred to
as the Benchmark Rate) i.e ..% per ________ with _______ rests plus applicable
interest tax, if any. The _____________ MCLR will be changed from time to time by the
Bank subject to the reset of interest rate after an interval of ___________ months. The
interest shall be calculated on daily balance basis due to the Bank and shall be charged
monthly so long as the amount due is not repaid in its entirety and shall form part of the
principal and carry interest at the Applicable Interest Rate.
(ii) The Spread may also change from time to time and the revised rate of interest shall
accordingly be charged from time to time in the Loan account;
(iii) Notwithstanding the above, if the Bank, on the request of the Borrower, in its discretion,
decides to make available to the Borrower the option of application of lower rate of interest,
as may be applicable to fresh loans under the Scheme, it is open to the Bank to charge
and levy a Switchover Fee at the rate prescribed by the Bank.
3. The borrower intends and agrees to construct the house on the plot within ____ years. In
case the construction of the house on the said plot is not completed within a period of
years or in the event of the plot / land is sold for gains or profit or for any other reason
the interest chargeable shall be @ _____% over and above the prescribed rate of
interest from the date of disbursement of the loan and the borrower agrees to pay to the
Bank the interest so payable and the Bank is authorized to debit the loan account of the
Borrower with the amount of difference of interest thus arrived at. This will be in addition to
the interest payable by the Borrower at the prescribed rate as mentioned in Clause 2A
above.
4. The Borrower agrees that the amount of the Loan together with interest will be paid by the
Borrower regularly in equated monthly installments (the EMI) of
Rs.____________(Rupees _______________) each and the first such EMI shall fall due
for payment on _____________.
5. The amount of the EMI shall be subject to change in accordance with the change/revision
in the Applicable Interest Rate to be charged in the Loan account and the Borrower shall
have one of the following options to exercise for repayment of the Loan
b) To continue to pay the existing amount of the EMI with the condition that the balance
outstanding in the Loan account shall be paid in one go with the last EMI of the originally
applicable repayment tenor; or
6. *(i) The Borrower irrevocably authorizes the Bank to recover the amount of the EMI and
other charges from his SF/CA /OD Account no._____________( the said Account)
maintained at the Banks said BO until the Loan along with interest, charges, etc. is fully
repaid and adjusted. The Borrower further undertakes to keep sufficient balance in his said
Account for recovery of the EMI by the Bank.
*(ii) The Borrower agrees to authorize his employer to remit his salary to the Banks said BO
for crediting the same to his said Account.
*(iii) The Borrower hereby deposits post-dated cheques to facilitate the due payment of the EMI
as per the Schedule-II hereunder.
*(iv) The Borrower is willing to make the payment of EMI, through participation in Electronic
Clearing Service (ECS) of the National Clearing Cell of RBI and authorizes the Bank to
raise the debits against the EMI from his account No.__________ maintained at
BO:_________________________ of ____________Bank (Give name and address of the
Bank) through ECS for payment of the EMI and understands that in the event of the Bank
not realizing payment from ECS for any reason whatsoever, the Borrower shall pay the
EMI to the Bank by cash or cheque along with the interest for the delayed period.
The Borrower has given the necessary mandate/will comply with the procedural
requirements for participation in ECS and also bear any service charges/fees as prescribed
by the Bank/RBI from time to time.
To facilitate collection of the EMI in the event of non-receipt of the EMI by ECS, the
Borrower has provided the Bank with ______number of undated cheques for the amount of
the EMI. The Borrower authorizes the Bank to fill up the date as and when required, but
without being bound, to collect the cheques to meet defaults in payment of the EMI.
(*Delete, if not applicable)
7. The Borrower agrees to pay additional interest at______% p.a. with agreed rests in case
of:
a. Non-payment of any installment of principal and/or interest, costs and other charges due,
on the amount in default from the date of default; or
b. Any irregularity in the Loan account
c. Default in Furnishing information as prescribed/called for by the Bank; or
d. Diversion or siphoning of the Loan amount;
e. Default in creation of security within the stipulated time;
f. Non-compliance of any of the terms & conditions of this Agreement;
g. Any other case as the Bank may deem fit.
However, this right is in addition to and not in derogation of the Banks other rights to
immediately call upon the Borrower to repay the entire amount outstanding or to enforce
the security and in the event of the Bank exercising its right to recall the Loan as aforesaid,
the Borrower undertakes that irrespective of the period for which the Loan is made, the
Borrower shall pay to the Bank immediately after demand, whereby the recall is made, the
balance then outstanding on account of the Loan together with interest and all other
charges till liquidation of the dues under the Loan.
8. The Borrower agrees that in case the Loan is pre-paid by availing loan from any other
bank/FI, the Borrower will bear and pay the prepayment charges at ___% of the
outstanding amount of the Loan pre-paid and the Bank shall be entitled to seek information
from the Borrower about source of prepayment made or any other particulars in order to
levy pre-payment charge and the Borrower agrees to furnish the information called for by
the Bank. The Bank shall also be entitled, inter-alia, to recover pre payment charge by
debiting to any account of the Borrower.
9. The Borrower undertakes not to raise any loan for the purpose and/or for his productive
activity from any institution other than the Bank.
10. The Borrower, undertakes to create 1st charge by way of mortgage within ________ days
on the plot described in Schedule-I hereunder (the Secured Asset) to secure the
repayment of the Loan after he gets the conveyance of the Secured Asset in his favor as
may be required by the Bank.
11. The Borrower will execute an irrevocable power of attorney in favor of the Bank as and
when required by the Bank as per the Performa annexed with this Agreement.
12. In case the Borrower dies or becomes insolvent or in the event of non-observance of any of
the conditions set out herein including failure to create/execute the required mortgage or in
the event of default of payment of any of the EMI or interest, costs and other expenses, the
entire amount outstanding in the loan account and remaining unpaid shall, at the option of
the Bank, after making demand in writing, become immediately payable and the security
held by the Bank will become enforceable for realization of its outstanding dues with
interests, costs and other expenses.
13. The Borrower shall fully insure the Secured Asset against loss, damage by fire, riots and
other hazards like earthquake, floods as per the requirements of the Bank in the joint name
of the Borrower and the Bank with the usual Bank clause till realization in full of the loan
liability of the Borrower. In case the Borrower fails to insure the said property, it will be
open to the Bank to get the same insured, without being bound to do so, as aforesaid and
debit the amount of premium to the Borrowers account which shall thereupon be treated
as part and parcel of the principal amount advanced.
a) Upon any money becoming payable under the insurance policy, the same shall be paid by
the Insurance company to the Bank and such part of any moneys so paid as may relate to
the interest of other parties insured there-under shall be received by the Bank as agent for
such other parties. And any sum received under such insurance shall be applied in or
towards liquidation of the amount due to the Bank on account of the said loan, interest and
other charges as aforesaid and in the event of there being a surplus the same shall be
refunded to the Borrower.
b) The receipt of the Bank shall be a complete discharge of the insurance company,
therefore, and shall be binding on all parties insured there under.
15. It will be the duty and responsibility of the Borrower to obtain the necessary permission of
the Vendor and/or any authority/lessor, if required, under any law, rules, regulations or any
instrument to create the security hereby agreed by him to be created in favour of the Bank
and it will be open to the Bank to refuse to disburse the loan until and unless the same is
obtained and submitted to the Bank.
16. The Borrower undertakes to take necessary steps to get the lease hold property converted
into free hold and get the conveyance/ transfer deed executed and registered and bear all
necessary expenses connected therewith from his/her own sources.
17. The Borrower hereby agrees to hold himself liable on all the confirmation letters signed by
anyone of the borrowers and on all the accounts stated to any one of them. The Borrower
agrees that each one of them is agent for the others to acknowledge and admit liability
outstanding in the account from time to time.
18. The Borrower agrees and hereby gives to the Bank during the currency and for the
payment of the Loan, a general lien and right to set off; and combine accounts without
notice; and charge on all movable property of every description coming into the Banks
possession on account of the Borrower for the time being held by the Bank on behalf of the
Borrower whether singly or jointly with others in India or elsewhere including, without
prejudice to the generality, any monies, bullion, deposits, deposit receipts, promissory
notes, bill of exchange, cheques, railway receipts, Govt. bills and other
documents/securities of every description.
19. Any demand herein may be made on the Borrower by an officer of the Bank or any notice
in writing under the hands of any such officer either served personally on the Borrower or
left at or sent by post to him at his address registered/available with the Bank.
20. The Borrower hereby consents that in case he commits default in repayment of the Loan,
the Bank/RBI can disclose his name in such manner and through such medium, as they
deem fit. The Borrower further consents for disclosure of his name by the Bank to any
Credit Information Company/Agency, as deemed fit.
SCHEDULE-I
SCHEDULE-II
1.
2.
3.
4.
5.
* Note: Advance cheques may be obtained under the Scheme. The number, amount and
dates of such cheques should be synchronized with the number, amount and due dates of
term Loan installments. Such cheques should be drawn favoring Punjab National Bank
and on the reverse of the cheques, payment of installment in term Loan account No.
____ can be written.
PNB 1123
ANNEXURE IV
POWER OF ATTORNEY
WHEREAS
2) Vide the said agreement, the Appointer (s) has/have agreed, inter alia, to deliver to and
deposit with the Bank each and every of the documents of title relating to the said
property as and when it comes into his/her/their possession with intent to create a
security thereon for the repayment of the loan, interest, interest tax, cost and other
charges, and for the due fulfillment of his/her/their other obligations under the said
agreement.
3) Vide the said agreement; the Appointer(s) has/have also agreed to give an Irrevocable
Power of Attorney to and in favour of the Bank to carry out the obligations of the
Appointer(s), under the said agreement inter alia, in regard to the creation of the
aforesaid security, etc.
1) To make payment of the said advance that may be sanctioned to the Appointer(s)
pursuant to the said Agreement as per the rules of the Bank applicable to grant of such
advance to the vendor towards the agreed purchase price for the said property.
2) To take all steps as may be necessary or required for the completion of the purchase of
the property.
3) To obtain and procure proper conveyance/transfers and other assurances of the said
property from the Vendor, to get the lease hold property converted into free hold and
get the conveyance/transfer deed executed and registered and in particular and without
prejudice to the generality of the foregoing, if necessary, to sign sale/title deeds and other
connected documents. To appear before the Sub-Registrar, to admit execution, to get
the sale/title deed executed by the Vendor and registered in accordance with Law, to
receive and take delivery of the registered sale deeds, and other documents of title from
the Vendor and after registration, from the office of the Registrar and in this regard, to
take all legal steps as may be deemed necessary by the bank.
4) To execute mortgage deed and deliver and deposit the aforesaid registered sale deeds
executed by the Vendor and/or each and every of the other documents of title of the
said Property with intent to create security thereon (by way of mortgage by deposit of the
title deeds) for the repayment of the loan, interest and other charges and for the due
fulfillment of the Appointer(s)s other obligations under the said Agreement, and to
execute, sign and deliver all such acknowledgements or writings as may be required
by the Bank for completion of the creation of the aforesaid security.
5) To apply for and obtain permission, sanction or certificate of competent authority or any
other authority or office for creating mortgage and for the purpose, swear and file
affidavits or applications, make statements and do such other acts, as may be
necessary.
6) Generally, to do such acts, deeds and things not herein specially authorized as any of
the attorneys may deem proper or expedient for or in relation to all or any of the
purposes of matters aforesaid.
And the Appointer(s) hereby agree(s) to ratify and confirm whatsoever the said attorney
or any of them shall lawfully do or cause to be done by virtue of this Power of Attorney
which shall be deemed to have been done by the Appointer(s) and the Appointer(s)
hereby declare that this Power of Attorney shall be irrevocable till all the repayments
under the said Agreement have been duly made by the Appointer.
SCHEDULE
(here describe the property to be purchased)
WITNESSES APPOINTER/S
PNB 1 1 24
ANNEXURE V
TRIPARTITE AGREEMENT
iii) Punjab National Bank, a body corporate constituted under the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at 7, Bhikhaiji
Cama Place, New Delhi and amongst others one of its Branch Offices at
(hereinafter referred to as the Bank which expression shall, unless repugnant to the
context, include its successors and assigns) of the Third Part.
WHEREAS
1. The Society has acquired under the terms of the Lease Agreement/Deed executed/
made on between the President of India/ Governor of
_______________________________or under the terms and conditions of
letter
No.________________________________ all that piece of land admeasuring
about
acres, situated at for the
construction of dwelling units to be built at the cost of its members according to their
allotment and to be occupied by such members so allotted on leasehold/ownership
basis and also for construction of other buildings to house community facilities which
shall be owned by the Society in accordance with the lay out plan sanctioned by the
competent authority.
2. The Borrower/s had applied to the Bank for a loan to purchase dwelling unit to be
constructed by the Society.
1. The Bank will make disbursement of the sanctioned loan by making payment to the
Society directly on behalf of the Borrower/s as and when demanded by the Society
subject to the Loan Agreement entered into between the borrower/s and the Bank and
the covenants hereunder agreed to among the parties hereto and any payment made to
the Society shall be deemed to be payments made to the Borrower/s and the
Borrower/s shall, in each case, be liable for the amount of the loan disbursed on
his/her/their behalf to Society as though the same had been disbursed directly to
Borrower/s. It is further agreed by the Borrower(s) that the Bank shall not be responsible
or liable to ensure or ascertain the progress of construction and mere demand for
payment would be sufficient for the Bank to effect disbursement as aforesaid.
2. The Borrower/s will not further mortgage/charge/let out/part in the possession of the flat/
house allotted as abovesaid to any person/financial institution for raising any loan
without the prior written consent of the Bank.
3. The Society will maintain a separate account of the Borrower/s and adjust the Payment
received by it from the Bank/borrower(s) against the cost of the particular category of
dwelling unit applied by the Borrower/s.
4. The above covenants shall not be construed to mean and fasten any responsibility upon
the Bank to observe the payment schedule, if any, between Society and the Borrower/s or
make payments to the Society as requested. The Bank shall not be responsible for
any delay or omission in disbursements on account of breach/default attributable to the
borrower(s)/society.
The Borrower/s shall be responsible to follow-up with the Bank to make disbursement on
his/her/their behalf as per any agreement he may have with the Society.
5. It is further agreed by the borrower/s that the Bank shall not be responsible or liable to
ensure or ascertain the progress of construction and mere demand for payment
would be sufficient for the Bank to effect disbursements aforesaid. Without prejudice
to above and notwithstanding anything to the contrary contained herein, the Bank may
in its sole discretion refuse to disburse the loan until :-
i) The Borrower/s has paid his/her/their own contribution in full to Society i.e. the cost of
the dwelling unit (including escalation, if any) less loan and/or
ii) Progress and need of construction justifies (Bank being the sole judge thereof) the
disbursement requested.
6. The Society undertakes that the Title Deed/Sale Deed/Deed of apartment in favour of the
Borrower/s by Society shall be executed and registered within days after the date of
delivery of possession. The Society shall deposit the said Title Deed/Sale
Deed/Deed of apartment directly with the Bank.
7. Soon after the Title Deed/Sale Deed of apartment is executed and registered, the
Borrower/s undertake/s to take steps for creation of mortgage of the dwelling unit/flat in
favour of the Bank, in the form and manner required by the Bank and as stipulated
under the Loan Agreement.
8. The Society does not have any objection in creation of mortgage of the dwelling unit by
Borrower/s in favour of the Bank and agrees to give necessary consent/no-objection as
and when required.
9. The Borrower/s shall diligently and faithfully observe and comply with all the rules,
regulations and bye-laws of Society.
10. If for any reason there is an increase/escalation in the cost of the dwelling unit such
increase shall be paid and borne by the Borrower/s without any reference to the Bank
and until such payment is made, the Bank shall have the right to suspend further
disbursement of the sanctioned loan.
11. In the event of default by the Borrower/s in repayment of dues of the Bank, the Bank
will be entitled to sell the flats and the Society will have to accept the purchaser of
dwelling unit/ flat as member of the Society.
12. The Society shall not transfer the dwelling unit/flat of the Borrower/s to any other
member of the Society without the prior written consent of the Bank.
13. If the Borrower/s withdraw/s from the scheme of Society or in the event of cancellation
of Borrowers name by the Society or death of Borrower/s, the Society will refund the
entire amount standing to the credit of the Borrower/s (including borrowers
contribution). the Bank shall refund the balance, if any, to the borrower(s) after adjusting
entire outstanding dues of the borrower(s) withinterest, costs and other amounts payable
by the borrower(s) to the Bank. In any event in which any refund becomes due and
payable under the Agreement/arrangement executed/made between the Borrower/s and
Society or otherwise, Society agrees not to pay any amount on any account to the
Borrower/s by way of refund or otherwise without written consent of the Bank. In case so
required by the Bank, any such amount shall be paid by the Society to the Bank.
IN WITNESS WHEREOF the parties hereto have signed this agreement on the day,
month and year first above written.
1.
2. BORROWER/S
1.
SIGNED AND DELIVERED by the within named PUNJAB NATIONAL BANK by the hand of Shri/
Smt.
Witnesses (Signatures with full names and address)
1.
TRIPARTITE AGREEMENT
*(ii)_______________________________________________________________
(hereinafter referred to as `the Builder' which term shall include its successors and assigns) of
the second part, and
*(Give detail regarding the name, constitution and address of the Builder which allotted/is selling
the property to the borrower/s)
(iii) Punjab National Bank, a body corporate constituted under the Banking Companies
(Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at 7, Bhikhaiji Cama
Place, New Delhi and amongst others one of its Branch Offices at
____________________________________________ (hereinafter called `the Bank' which
expression shall unless repugnant to the context include its successors and assigns) of the third
part.
WHEREAS
1. The borrower/s desire/s to purchase a ready built flat/ house allotted to him/her/their
on________________by the Builder under its____________________
__________________________ scheme (hereinafter referred to as `the said scheme').
3. The title of the said flat/house shall be conveyed by the Builder unto the borrower/s after
__________years from allotment on payment of the total cost of the said flat/house as per the
demands for payment by Builder/instalments agreed to between the borrower/s and Builder.
The Bank will make disbursement of the sanctioned loan by making payment to the
Builder directly on behalf of the borrower/s and any payment made to the authority shall be
deemed to be payments made to the borrower/s and the borrower/s shall, in each case, be liable
for the amount of loan disbursed on his/her/their behalf to the Builder as though the same had
been disbursed directly to borrower/s.
2. It is further agreed by the borrower/s that the Bank shall not be responsible or liable to
ensure or ascertain the progress of construction and mere demand for payment would be sufficient
for Bank to effect disbursement as aforesaid. Without prejudice to the above and notwithstanding
anything to the contrary contained herein the Bank may in its sole discretion refuse to disburse the
loan until:-
i) The Borrower/s has/have paid his/her/their own contribution in full to Builder i.e. the cost of
the dwelling unit (including escalation, if any) less the loan and/or
ii) Progress and need of construction justifies (being the sole judge thereof) the disbursement
requested.
3. The Builder will maintain a separate account for the borrower/s and adjust payment of
housing loan received by it from the Bank/borrower(s) against the cost of the particular category of
flat/house applied by him.
4. On completion of the flat, its possession will be handed over to the borrower/s forthwith
along with the conveyance of the title thereto on lease hold/free hold basis. The borrower/s will
mortgage the said flat/house forthwith thereafter to the Bank as security for the said loan as per
the terms and conditions of the said agreement.
5. The cost of the flat, in excess of the amount of the Housing Loan sanctioned, will be borne and
paid by the borrower/s.
6 If the borrower/s withdraw/s from the scheme or fail/s to pay the balance amount representing
the difference between the housing loan allowed by the Bank and the actual cost of the house/flat
(including escalation) or die/s or allotment of the flat/house is otherwise cancelled, the entire
amount standing to the credit of the borrower/s (including margin money and borrower's
contribution) will be refunded by the Builder to the Bank. The Bank shall refund to the borrower/s
balance, if any, after adjusting the entire outstanding dues, including interest, costs and other
amount recoverable by the Bank from the borrower/s.
7. The covenants hereunder shall not be construed to mean and fasten any responsibility
upon the Bank to observe the payment schedule, if any, between the Builder and the borrower/s or
make payments to the Builder, as requested. The Bank shall not be responsible for any delay or
omission in disbursement on account of breach/default attributable to borrower/society. The
borrower shall be responsible to follow-up with the Bank to make disbursement on his/her/their
behalf as per arrangement he may have with the Builder.
8. The Builder will give/provide necessary consent/no objection for mortgage of the house/flat
by the borrower/s in favour of the Bank.
9. If for any reason there is an increase/escalation in the cost of the house/flat, such
increase shall be paid and borne by the borrower without any reference to the Bank and until
such increase is paid, The Bank shall have the right to suspend further disbursement of
sanctioned loan.
10. The borrower/s will not further mortgage/charge the flat/allotted as above said to any
person/financial institution for raising any loan without the prior written consent of The Bank.
11. The Builder shall not entertain the request of transfer of the flat/house of the borrower/s
without the prior written consent of the Bank.
12. In any event in which any refund becomes due and payable, under any
agreement/arrangement executed/made between the borrower and the Builder or otherwise, the
Builder agrees not to pay any amount on any account to the borrower/s by way of refund or
otherwise without the written consent of the Bank. In case so required by the Bank, any such
amount shall be paid by the Builder to the Bank.
IN WITNESS WHEREOF the parties hereto have signed this agreement on the day, month and
year first above written.
1st Witness:_________________________
(Name & address)
2nd Witness:________________________
(Name & address)
BORROWER/S
(Signatures)
2nd Witness_______________________
(Name & address)
FOR THE BUILDER
(Signatures)
LETTER OF AWARENESS-CUM-POSSESSION
The Manager
BO:
Sir,
2. I/We am/are aware that the Bank has financed the purchase. I/we have received the
amount of loan towards sale price.
3. I/We will extend all cooperation in the execution of necessary documents/ agreements
for completion of sale and/or for conversion of property from lease hold into free hold.
Date:
VENDOR/s
PNB 1127
ANNEXURE VIII
LETTER APPOINTING THE PARI PASSU/ FIRST CHARGE HOLDER AS AGENT OF THE
BANK TO ACCEPT DEPOSIT OF
TITLE DEEDS AS SECURITY ON BEHALF OF THE BANK
Date :
The Manager/The Managing Director/Chairman
Dear Sir,
i)
ii)
Sh./ Smt. has agreed to create
pari passu / 2nd charge i.e. charge subject to prior charge in your favour, by way of mortgage
on its immovable property/fixed assets situated at __________________
in favour of Punjab National Bank by
deposit of title Deeds and also by execution of hypothecation agreement in respect of movable
assets forming part of fixed assets. You have also consented for creation of the pari passu / 2nd
charge in favour of the Bank vide letter dated .
Thanking you,
Yours faithfully
MANAGER
PNB 1128
ANNEXURE IX
LETTER OF PARI PASSU/ FIRST CHARGE HOLDER ACCEPTING THE AGENCY OF THE
BANK
The Manager,
Punjab National Bank,
BO :
Date:
Dear Sir,
We, hereby confirm that we shall also duly enter the deposit of title deeds in our records. We
further undertake that on adjustment of our loans, the title deeds shall not be handed over to
the mortgagors SMT./ SH.
but shall be retained by us on behalf of the Bank till further instructions from you.
Thanking you,
Yours faithfully,
PNB 1129
ANNEXURE X
Dated
(to be dated subsequent to date of entry of mortgage in favour of Punjab National Bank)
FROM:
Smt/ Sh _____________________
____________________________
____________________________
Dear Sir,
REG: LIMITS_______________________SANCTIONED T O S M T . / S H . /
MESSERS
I/we have already on (date of deposit) deposited with you in your office
the undernoted original title deeds of my/our property situated at with intent to
create mortgage by deposit of title deeds of the same as security for the following loan facilities:
i)
ii)
Punjab National Bank has at my/our request sanctioned the following housing loan
facilities:-
i)
ii)
Your corporation was authorized by Punjab National Bank to accept title deeds (mentioned herein)
by constructive delivery for creation of equitable mortgage by me/ us and I/we confirm having
agreed with you on _____ that the title deeds of immovable property already deposited with you
on ______ (same date shall continue to be held with you as security for the repayment of the loan
facilities and moneys advanced/ or to be advanced as aforesaid by the said Bank to us and
interest, costs and charges due thereon.
1)
2)
PROPERTY COVERED
1)
2)
(Together with all buildings and other structures, fixtures and fittings, constructed, erected
or embedded/installed thereon or to be constructed, erected or embedded/installed thereon).
Thanking you,
Yours faithfully,
(BORROWER/S)
INTER SE AGREEMENT
_______________________________________________________________
_______________________________________________________________
(hereinafter referred to as the borrower/s), the pari passu charge/ first charge holder and the
Bank have granted/have agreed to grant to the borrower/s the following loan facilities :-
(Indicate all facilities covered / to
be covered by pari passu/first charge and second charge)
WHEREAS Shri/Smt.
(hereinafter referred to as the mortgager/s) have created charge on his/ her/their immovable
properties (more particularly described in schedule I of the mortgager/s), situated
at _________
in favour of the pari passu
charge / first charge holder vide mortgage created / executed on as security for
the repayment of the principal amount of the aforesaid credit facilities, interest, cost, expenses,
and other charges payable to the pari passu / first charge holder in terms of loaning and
security documents executed by the borrower/s and / or mortgager/s.
WHEREAS the mortgager/s has/have also created charge on the immovable property of
the mortgager/s situated at
in favour of the Bank vide mortgage created
/ executed on as security for the due repayment of the
principal amount of the aforesaid credit facilities, interest, interest tax, cost, expenses, and
other charges payable to the Bank in terms of loaning and security documents executed
by the borrower/s and or mortgager/s.
WHEREAS it has been agreed by and between the pari passu / first charge holder and the
Bank that the charge as aforesaid created/ to be created in favour of the Bank stands pari
passu to / subject to and sub- servient to the charge as aforesaid created or to be created in
favour of the pari passu / first charge holder.
WHEREAS pursuant to the said agreement by and between the pari passu / first charge
holder and the Bank with a view to defining rights and obligations inter se, the participating
institutions have agreed to enter into this agreement.
NOW THIS AGREEMENT WITNESSETH AND THE PARI PASSU / FIRST CHARGE HOLDER
AND THE BANK AGREE AS FOLLOWS :
1. That the pari passu / first charge holder and the Bank shall grant/
continue to grant the borrower/s the credit facilities aforementioned.
3. In the event of the mortgaged security being realized howsoever, and in whatsoever
manner the proceeds of such realization including moneys received from insurance
companies or otherwise in respect of the security remaining after deducting therefrom the cost
(between attorney/advocate and client), charges and expenses incidental to such realization
shall in the first instance be appropriated towards or in satisfaction of indebtedness of the
borrower/s or the mortgagor/s in respect of credit facilities due and outstanding to
* In case of second *______________________________________________(the first
charge charge holder), thereafter the balance if any shall be available for and be
appropriated to the outstanding indebtedness or liabilities of the
borrower/s and mortgager/s in respect of the credit facilities as
aforesaid availed from the Bank
**_____________________________________________(the pari
** in case of pari passu charge holder) and the Bank proportionately on pari passu
passu charge charge bases. (Delete whichever is not applicable)
4. That the pari passu / first charge holder and the Bank shall give each
other the information and other periodical data received from the
borrower/s from time to time and shall keep each other informed about the
total outstanding due from the borrower/s and mortgager/s from time to
time.
5. That all the moneys received by the pari passu / first charge holder
6. That the pari passu / first charge holder or the Bank shall inform each
other before taking any steps to take possession or realise or enforce the
mortgaged/ charged security. The proceeds of any realization in such
legal proceedings shall be available for and be appropriated in the
manner indicated and agreed to in these presents
Other 7.
conditions. 8.
9.
.
SCHEDULE I
Detail the particulars of mortgaged properties)
In witness whereof the parties hereto have executed these presents, the day, month and year
above written.
PNB 1132
ANNEXURE XII
IN THE TITLE DEED REGISTER/ RECORDS OF PARI PASSU/ FIRST CHARGE HOLDER
MEMORANDUM
* give the detail of the loan, limits availed from pari passu / first charge holder.
Mortgagor/s to pari passu/ first charge holder for its *________
__________________________________________________________________________________________________________________________
______________________________________________________________
together with interest, additional interest, further interest, interest tax, liquidated damages,
compound interest, commitment charges, cost, charges, expenses and other moneys
payable under the respective loan agreement/s.
FOR PARI PASSI / FIRST CHARGE HOLDER (Signature of the person accepting the
title deeds)
PNB 1131
0
ANNEXURE XIII
AGREEMENT OF GUARANTEE
Whereas at the request of the Guarantor(s) the Bank has agreed to allow/ continue/enhance an
accommodation by way of _____________________ to Shri/Smt/Messrs. ___________
_______________________________________________ (hereinafter called the Borrower(s))
on the terms and conditions contained ____________________________________
___________________ AND whereas the Guarantor(s) has/have agreed to guarantee due
payment of the amount due to the Bank in respect of the said limits of `._____________
(`______________________________________________________________).
2. The Guarantor(s) hereby guarantee(s) jointly and severally to pay to the Bank after
demand in writing all principal, interest, cost, charges and expenses due and which may at any
time become due to the Bank/from the borrower(s), on the accounts opened in respect of the
said limits (hereinafter called the said accounts) down to the date of payment and also all loss or
damages, costs, charges and expenses and in the case of legal costs, as between attorney and
client occasioned to the Bank by reason of omission, failure or default temporary or otherwise in
such payment by the Borrower(s) or by the Guarantor(s) or any of them including costs (as
aforesaid) of enforcement or attempted enforcement of payment by suit or otherwise or by sale
or realisation or attempted sale or realisation of any security for the said indebtedness or
otherwise howsoever or any costs (which costs to be as aforesaid) charges or expenses which
the Bank may incur by being joined in any proceeding to which the Bank may be made or may
make itself party either with or without others in connection with any such securities or any
proceeds thereof.
1
3. The Guarantor(s) hereby declare(s) that this guarantee shall be a continuing guarantee
and remain operative in respect of each of the said limits severally and may be enforced as
such in the discretion of the Bank, as if each of the facilities / limits had been separately
guaranteed by him/her/them. This guarantee shall not be considered as cancelled or in any
way affected by the fact that at any time or from time to time any of the said accounts may show
on liability against the Borrower(s) or may even show credit in his/her/their favour but shall
continue and remain in operation in respect of all subsequent transactions till the accounts are
closed.
4. The Guarantor(s) hereby consent(s) to the Bank making any variance without reference
or notice to him/her/them, that it may think fit in the terms of contract, including any change in
rate of interest charged to the account, with the Borrower(s). The Guarantor(s) further
consent(s) to the Bank accepting additional collateral security of any kind, determining enlarging
or varying any credit to him/her/them or making any composition with him/her/them or promising
to give him/her/them time are not sue him/her/them and to the Bank parting with any security it
may hold for the guaranteed debt. The Guarantor(s) also agree(s) that he/she/they shall not be
discharged from his/her/their liability by the Bank releasing the Borrower(s) or by any action or
omission of the Bank, the legal consequences of which may discharge the
Borrower(s) or by any act of the Bank which would, but for this present provision be inconsistent
with his/her/their rights as Guarantor(s) or by the Bank's omission to do any act which, but for
this present provision, the Bank's duty to the Guarantor(s) would have required the Bank to do.
Though as between the borrower(s) and the guarantor(s) he is/she/they are guarantor(s) only,
the guarantor(s) agree(s) that as between the Bank and guarantor(s) he/she/they are debtor(s)
jointly with the borrower(s) and accordingly he/she/they shall not as such be entitled to claim the
benefit of legal consequences of any variation in the terms of the contract and to any of the
rights conferred on a Guarantor by Sections 133, 134, 135, 139 and 141 of the Indian Contract
Act. The Guarantor(s) further agree(s) that the acceptance by the Bank of any irregular
payments or any amount short of the Amount of agreed instalment/s. whether made before or
due dates or thereafter by the Borrower(s), shall not discharge the Guarantor(s) from
his/her/their liability and such acceptance will not amount to or create any new or fresh contract.
The Guarantor(s) further agree(s) that the Bank shall be under no obligation to notify
him/her/them, any default committed by Borrower(s) at any time or from time to time.
5.The Guarantor(s) hereby consent(s) to the Bank renewing from time to time and said
_____________________ limits of `_________________ allowed to the Borrower(s) obtaining
fresh documents from him/her/them closing the existing account, opening new accounts, or
transferring the same or part thereof to any branch of the Bank. Notwithstanding this, the
Guarantor(s) agree(s) and declare(s) that he/she/they shall remain liable to the Bank for any
indebtedness of the Borrower(s) under the renewed limit and terms and conditions of this deed
shall apply and govern his/her/their liability under the renewed limit.
2
7. No advance, overdraft or other credit facilities that the Bank may give to the Borrower(s)
beyond the limit mentioned in para No.1 above or obtaining of any other guarantee or security
from the Borrower(s) shall determine, prejudice or lessen the liability of the Guarantor(s)
hereunder.
8. The Guarantor(s) further agree(s) that any accounts settled between the Bank and the
Borrower(s) or the balance admitted or confirmed by him/her/them or his/her/their authorised
agents as due on the said accounts to the Bank will be conclusive and shall not be disputed or
questioned by the Guarantor(s).
9. The Guarantors authorise and appoint each of the guarantors or any person duly
authorised by them as agent to confirm the balance due and acknowledge liability on
his/her/their behalf as Guarantors from time to time. The Guarantors further agree that any
acknowledgement of liability made by Borrower(s) or any person duly authorised by
him/her/them to operate account or any of the co-guarantors as agent on behalf of the
Guarantors shall be binding on him/her/them for giving fresh start of limitation and also for
admission of liability against him/her/them.
10. In case the Bank sells the hypothecated, pledged or mortgaged security/ies held in the
loan account, the Guarantor(s) agree(s) that the Bank may sell said securities without giving any
notice of such sale of the Guarantor(s). The Guarantor(s), agree(s) that he/she/they will not
question the sale or the sale price in any manner or on any ground whatsoever.
11. In case the amount guaranteed by the Guarantor(s) is paid by the Borrower(s) to the
Bank and the Bank in consequence discharge the Guarantor(s) from all liabilities under this
guarantee, but it is subsequently determined by a Court of Law or otherwise that the said
payment was a fraudulent preference and the Bank is made to refund the said amount, the
Guarantor(s)' liability to the Bank on the basis of this guarantee shall revive to the same extent
and in the same manner as if such payment had never been made.
12. The Guarantor(s) also agree(s) that the Bank may enforce the guarantee without
enforcing, selling or realising any of the securities kept under lien, hypothecated, pledged or
mortgaged with it, notwithstanding that any bills or other instruments given by the Borrower(s) in
the said account may be in circulation for collection and outstanding.
13. The guarantee hereby given shall not be determinable or taken as satisfied by the
Guarantor(s) except on the terms of his/her/their making full payment unto the limit of
his/her/their guarantee for any then outstanding liabilities or obligations on the said account.
The guarantee shall not be affected by his/her/their death or insanity until the Bank shall have
received formal authentic notice in writing thereof.
14. If the Guarantor(s) has/have or shall hereafter take any security from the borrower(s) in
respect of his/her/their liability under this guarantee, the Guarantor(s) will not prove in the
liquidation of the Borrower(s) in respect thereof to the prejudice of the Bank and such security
shall stand as security and shall be forth with deposited with the Bank.
15. So long as any money remains owing under this guarantee, the Bank shall have lien on
all moneys standing to the credit of guarantor(s) and on any securities or goods in the hands of
the Bank belonging to any of the Guarantor(s) and the Bank shall be entitled to appropriate/set
off/realise to same.
3
16. The absence or infirmity in the borrowing powers on the part of the Borrower(s) or any
irregularity whatsoever in the exercise thereof shall not affect the liability of the Guarantor(s) and
any moneys advanced to the Borrower(s) shall be deemed to be due and owing notwithstanding
such absence, infirmity or irregularity and this guarantee shall not be affected by any change in
the name or constitution of the Borrower(s). It is further expressly agreed that this guarantee
shall remain enforceable against the Guarantor(s) irrespective of the fact whether the contract
between the Borrower(s) and his/her/their creditor is enforceable at law or not. It is also
expressly agreed that in case the guarantee given by the Guarantors can not be enforced or
becomes unenforceable at law for any reason whatsoever, the guarantee given hereunder be
enforced as an indemnity against the Guarantor(s) and he/she/they agree(s) and undertake(s)
indemnify and reimburse the Bank for any loss, damages, costs and other charges which the
Bank may have to recover and realise from the Borrower(s) in his/her/their loan accounts with it.
17. Any notice by the Bank in writing under this guarantee or a demand in writing shall be
deemed to have been duly given to the Guarantor(s) by sending the same by post addressed to
him/her/them at the address hereunder written and shall be effectual notwithstanding any
change of residence or death and notwithstanding the notice therefore to the Bank and such
demand shall be deemed to have been received by the Guarantor(s) 24 hours after the posting
thereof and shall be sufficient to prove that the letter containing the demand was properly
addressed and posted.
18. The Guarantor(s) agree(s) that a copy of account of the principal debtor(s) contained in
the Bank books of account signed by the Manager for the time being of the office at which such
accounts shall be kept or any officer of the Bank shall be conclusive evidence against
him/her/them of the amount for the time being due to the Bank from the principal debtor(s) in
any accounts or other proceedings brought against him/her them upon this guarantee.
19. The Guarantor(s) hereby agree(s) that in case of any default in the repayment of the
dues under the Facilities / Limits, including the interest, installment, charges, etc., by
the Borrower and / or any default committed by the Guarantor(s) in discharging
his/her/their obligations under this guarantee, the Bank and/or Reserve Bank of India
will have an unqualified right to disclose or publish the Guarantor(s) names or the
names of the Guarantors/Guarantors company/firm/unit and its
directors/partners/proprietors as defaulter in such manner and through such medium as
the Bank and/or Reserve Bank of India in their absolute discretion may deem fit.
20. The guarantor(s) hereby further agree(s) that in case demand / claim is made on
him/her/them by the Bank for repayment of the dues under the Facilities/ Limits and the
guarantor(s), despite having sufficient means, refuse(s)/neglect(s) in discharging
his/her/their obligation under this guarantee, he/she/they will be treated as a wilful
defaulter and Bank/RBI will have an unqualified right to declare the name of such
guarantor as wilful defaulter and to initiate further action as per Bank/RBI guidelines or
applicable law/statute, in respect of wilful defaulters.
21. The Guarantor(s) accept(s) and confirms(s) that the Bank requires consent of the
Guarantor(s) for disclosure of the information and data relating to the obligations
assumed and / or any default committed by the Guarantor(s) under this Guarantee.
4
Accordingly, the Guarantor(s) hereby give(s) consent for disclosure by the Bank of all
or any such:
Information and data relating to the Guarantor(s);
The information or data relating to the obligations of the Guarantor(s) under this
Guarantee; and
Default, if any, committed by the Guarantor(s) in discharge of such obligations;
as the Bank may deem appropriate and necessary, to disclose and furnish to Credit
Information Bureau (India) Limited (CIBIL) and any other Credit Information Company
/ person authorized in this behalf by Reserve Bank of India.
The Guarantor(s) declare(s) that the information and data furnished by the
Guarantor(s) to the Bank are true and correct.
The Guarantor(s) agree(s) that CIBIL and any other Credit Information Company/person
so authorized may use and process the said information and data disclosed by the Bank
in the manner as deemed fit by them; and furnish, for consideration, the processed
information and data or products thereof prepared by them, to banks/financial
institutions, etc. and other credit grantors or registered users, as may be specified by
Reserve Bank of India in this behalf.
22.The Guarantor(s) further agree(s) not to induct, on their part, a person, who has been
identified as Willful Defaulter by the Bank in terms of the directions/guidelines issued by
Reserve Bank of India or the guidelines framed by the Bank, as director on the Board of the
Directors of the Guarantor(s). If any person, who is a Willful Defaulter, as hereby referred,
is a director on the Board, the Guarantor(s) undertake(s) to get him removed from the
Board of the Directors. The Guarantor(s) also agree(s) to make necessary amendments in
the Articles of Association of the Guarantor(s) to make the said requirement as a ground for
removal of such directors and furnish a copy of the Articles of Association as amended to
the Bank. (Applicable in case of corporate Guarantor/s)
In witness whereof the Guarantor(s) and the Bank have set their hands hereunto at the
place and on the date as first hereinabove mentioned.
GUARANTOR/S
WITNESSES:
1._______________________
_______________________
_______________________
_______________________ FOR THE BANK
2.______________________
_______________________
_______________________
_______________________
PNB 58
5
ANNEXURE XIV
To
------------------------------------
------------------------------------
------------------------------------
------------------------------------
Dear Sir,
The above loan has been sanctioned to me by Punjab National Bank (PNB).
*I hereby authorise you to remit my salary every month to PNB BO:______________________ for
crediting my account No. ______________.
I hereby authorise you to remit the amount payable to me by way terminal benefits and gratuity, by
reason of my retirement, resignation or discontinuing in the service for any reason, to PNB
BO:________________________ for crediting to my aforesaid loan account No. _________ with them.
This authority is irrevocable until the loan amount mentioned above with interest is paid in full and written
consent of the Bank is obtained.
Your faithfully,
PLACE:_____________
ADDRESS____________________________
DATED:____________
SIGNATURE_________________________
NAME OF EMPLOYEE__________________
Signature & stamp of the officer authorised to disburse salary and allowance
PLACE :_________________
DATED:_________________
PNB 1134
6
ANNEXURE XV
LETTER CEDING PARI PASSU CHARGE
From
______________________
______________________
(pari passu charge holder)
Date:-_________
To
The Manager
BO:-____________________.
Punjab National Bank.
Dear Sir,
Reg: Letter ceding pari passu charge over immovable property situated
at____________________________________________in respect of housing loan
facility sanctioned to Sh. / Smt.
_____________________________________________
______________________________________________( Borrower/s).
We___________________________________________________________________
_
(mention the name of the first charge holder) do hereby agree and confirm that
notwithstanding any thing to the contrary contained in or by virtue of the mortgages and
charges created and or to be created by Sh. / Smt.
________________________________
______________________________________________________________________
_
S/D/W of ______________________________________________________________
r/o
______________________________________________________________________
___
(hereinafter referred to as the borrower/s) in our favour in respect of the borrowers
immovable properties both present and future to secure our:-
-
-
7
We further agree and undertake and confirm that we shall execute an inter se pari
passu agreement with you to provide that securities created by / to be created by the
borrower/s in favour of us shall rank pari passu without any preference and priority of
one over the other and including the usual provisions of insurance, custody of title
deeds applicable of the realization of the proceeds of sale etc.
Please arrange to issue suitable letter ceding pari passu charge in our favour at an early
date on similar lines, if not issued earlier.
Yours faithfully,
(Pari Passu Charge Holder)
8
ANNEXURE XVI
From
______________________.
______________________.
(first charge holder)
Date:-_________
To
The Manager
BO:-____________________.
Punjab National Bank.
Dear Sir,
Yours faithfully,
(FIRST CHARGE HOLDER)
9
ANNEXURE XVII
The Manager
Punjab National Bank
______________________
______________________
Dear Sir,
This is to confirm that the above named party is a bonafide Registered shareholder of
our Society. Smt./Shri/Km.____________________________ has booked a Dwelling
Unit in our ____________________________________ (Name of Cooperative Group
Housing Society). The Member has opted for Type __________________ Flat and the
tentative cost of the same is Rs._________________________. The member has
already paid to the Society Rs.______________________ and the balance
Rs.__________________ is payable in ___________ instalments (No. of instalments).
We inform you that the said Dwelling Unit as well as the land appurtenant thereto are
not subject to any encumbrance/ charge or liability of any kind whatsoever and the
entire property is free from all encumbrances.
Thanking you,
Yours faithfully,
Place:
Date:
10
ANNEXURE XVIII
BO:__________________________
Date: ___________________
_________________________
_________________________
_________________________
Dear Sir/Madam,
Please refer to your letter dated ______________. We evince interest in the proposal
and reply as under:
Yours faithfully,
MANAGER
11
ANNEXURE XIX
Whereas the borrower had given option of fixed interest/floating rate and agreed to
pay interest at the rate of ______% per rate with _________rests.
Whereas guidelines regarding charging of interest in housing loan were revised and
under the revised guidelines, the borrowers were given the right to change the option
from fixed rate of interest to the floating rate of interest or vice versa in their housing
loan accounts.
Whereas the borrower desires to have the benefit of the revised guidelines to which the
Bank has agreed as herein provided.
12
(i) The borrower/s agree/s to pay interest under the fixed interest rate option at the rate
as prescribed and prevailing as on date of this agreement/at the time of exercise of
Fixed Interest option.
Provided that the Bank shall have the discretion to change the rest.
(ii) The option of fixed rate of interest exercised by the borrower/s will not be allowed to
be changed for a minimum period of ______ years, unless Bank otherwise agrees, on
conditions as prescribed by the Bank.
iii) In case the change of option is allowed by the Bank, floating rate of interest would
be the prevailing floating rate at the time of change of option and thereafter, at the rate
as prevailing from time to time.
iv) The option exercised by the borrower/s shall be the block period of three years as
above, unless, the Bank otherwise agrees on conditions as prescribed by the Bank.
After completion of each block it is open to the borrower/s to switch over from one
option to other. If no intimation of change of option is received it shall be presumed that
the borrower/s continue/s with his/her/their earlier option which the borrower/s is/are
availing.
v) Interest rate shall be reviewed and re-set on completion of a block of five years. Year
of first disbursement, whatever be the month of availment, will be taken as first year and
year will cover the period from 1st April to 31st March. As and from 1st April, after
completion of every block of five years, the interest rate as re-set will be applied. If there
is any delay in revision/re-set of interest, appropriate adjustment will be made in the
account, effective from 1st April of the year. If the interest rate is not re-set, until it is re-
set, rate as prevailing before will be applied. If interest rate is not re-set in the year when
it is due, it shall be open to Bank to re-set the interest in any subsequent year and in
such event, the interest rate as re-set, will be applicable from 1st April of the year in
which it is re-set for the remaining years of block of five years. Only Bank has full
discretion to fix/ prescribe/ revise/ re-set the rate of interest.
(i) The borrower/s agree/s to pay interest under the floating interest rate option at the
rate and rest as prescribed by the Bank from time to time.
(ii) The option of floating rate of interest exercised by the borrower/s will not be allowed
to be changed for a minimum period of three years, unless Bank otherwise agrees, on
conditions as prescribed by the Bank.
(iii) In case the change of option is allowed by the Bank the fixed rate of interest would
be the prevailing fixed rate at the time of change of option.
13
(iv) The option exercised by the borrower/s shall be for the block period of three years
as above, unless Bank otherwise agrees on conditions as prescribed by the Bank. After
completion of each block it is open to the borrower/s to switch over from one option to
the other. If no intimation of change of option is received, it shall be presumed that the
borrower/s continue with his/her/their earlier option which the borrower/s is/are availing.
2B The borrower/s exercise/s the *floating interest rate / fixed interest rate option
and agree/s to pay interest at the rate and rest as prescribed by Bank.
The rate and rest as on date of this agreement is _______% p.a. with ____________
rest.
The interest shall be calculated on the daily balance due to the Bank in the Housing
loan account and shall be charged monthly/quarterly so long as the amount due from
the borrower/s is not paid in its entirety and the same will form part of the principal and
carry interest at the above mentioned rates.
2. Borrower exercises the floating interest rate/fixed interest rate option and
agrees to pay interest at the rate and rest as prescribed by Bank.
The rate and rest as on the effective date is _____________% with ________rests.
3. That with effect from effective date, the rate of interest shall be charged as per
substituted clause.
4. All other terms and conditions as contained in the said Agreement shall
continued to remain in full force.
In witness whereof the parties hereto have set their hands on the day, month and year
hereinabove mentioned.
Borrower
Authorised Signatory
14
ANNEXURE - XX
TRIPARTITE AGREEMENT
AND
Punjab National Bank, a body corporate, constituted under the Banking Companies
(Acquisition & Transfer of Undertakings) Act, 1970 having its Head Office at 7-Bhikhaiji
Cama Place, New Delhi-110607 and, amongst others, a Branch Office at
_____________ (hereinafter referred to as Punjab National Bank which expression
shall, unless the context otherwise requires, include its successors and assigns);
(AGIF and Punjab National Bank are hereby jointly referred to as the Lenders as
the context may require)
AND WHEREAS the Borrower is employed with the Govt of India, Ministry of Defence,
Indian Army and desirous of taking loan from AGIF and is eligible for a loan from AGIF
and accordingly AGIF has sanctioned/disbursed a loan of Rs
__________________________(Rupees
__________________________________________) to the Borrower as per his
entitlement;
15
AND WHEREAS, the Borrower has also applied to Punjab National Bank for a further
loan of Rs
_______________________________________(Rupees________________________
________________________) for meeting the total cost of the Purpose.
OR
AND WHEREAS, the Borrower has requested and agreed to secure the Lenders with
the Pari Passu charge of the property being
_________________________________________ (hereinafter referred to as the
PROPERTY).
AND WHEREAS the Borrower and AGIF have further agreed to secure Punjab National
Banks loan by way of a nomination in favour of Punjab National Bank, the ARMY
GROUP INSURANCE POLICY and the extended army group insurance policy that exist
with AGIF.
AND WHEREAS Punjab National Bank has considered the said request with a clear
understanding and an irrevocable undertaking by the Borrower that subsequent to the
disbursement, if any, as requested by the Borrower, there would be no repayment
default for any reason whatsoever;
AND WHEREAS the Borrower has represented, and such representation being a
continuing representation, that Borrowers obligation to repay the loan shall be a distinct
and independent obligation more particularly independent of any issues/concern/dispute
of whatsoever nature with respect to the property;
AND WHEREAS one of the conditions for Punjab National Bank sanctioning the said
Loan to the Borrower was that the understanding as stipulated in the recitals above
shall be reduced and recorded in writing with an understanding and intent of making the
same irrevocable, binding and enforceable by and between the parties herein to the
satisfaction of the lenders and documents in evidence thereof are delivered to the
lenders there will be no disbursement pursuant to the Loan Agreement.
16
AND WHEREAS in consideration of the Lenders agreeing to provide the respective
loans to the borrower, all the Parties have agreed as under.
2. The housing loan advance to the borrower by the lenders shall be subject to the
borrowers repayment capacity as assessed by the lenders individually and shall
be secured against the first and exclusive Pari Passu mortgage of the
PROPERTY in favour of AGIF and Punjab National Bank. The understanding
between the lenders, in respect of the sharing of the charge on the property, shall
be in accordance to the terms of the special conditions attached herewith as
SCHEDULE I forming an integral part of this agreement between the parties
herein.
3. That the AGIF shall hold the original documents of title for the property for itself
and on behalf of Punjab National Bank as Joint mortgage of the property (as
elaborated in Schedule 1 attached herewith).
4. That in the event the borrower is not traceable or is not responding to Punjab
National Bank, the AGIF shall also on a best effort basis assist Punjab National
Bank in tracing/communicating with the borrower.
5. That Punjab National Bank shall keep the AGIF informed of the payments made
by the borrower, balance due and defaults, if any, on a quarterly basis.
6. Further if the borrower commits a breach of any of the terms and conditions of
this Tripartite Agreement, it shall be treated as an event of default under the
respective Loan Agreement executed between the borrower and AGIF and the
borrower and Punjab National Bank. The borrower hereby further
assigns/nominates Punjab National Bank to receive all death benefits admissible
under the ARMY GROUP INSURANCE POLICY and the EXTENDED ARMY
GROUP INSURANCE POLICY with the AGIF including but not limited to the
maturity amount payable at the retirement/termination, that remain unpaid after
deduction of AGIFs dues. In the event of death of the Borrower, AGIF shall
forthwith repay entire dues outstanding in the loan account of the Borrower with
Punjab National Bank under the loan.
7. The borrower hereby further authorize AGIF to seek Punjab National Banks prior
written permission before releasing any maturity benefits to the borrower dat the
time of the termination/cessation of the borrowers services with the Army. AGIF
accordingly hereby agrees and undertakes to obtain such prior written
17
permission of Punjab National Bank before releasing all /any such amounts at
the time of termination/cessation of employment.
8. The parties hereby agree and acknowledge that Punjab National Bank shall be
well within its rights to not issue such permission or issue the same on such
terms and conditions as the situation at such point in time warrant, including but
not limited to issuing stipulation on AGIF to pay all/any part of the amounts
payable by AGIF to the borrower directly to Punjab National Bank. The borrower
hereby further unconditionally authorizes AGIF to so act upon the written
instructions of Punjab National Bank only, without any further communication
from the borrower or notwithstanding and instructions to the contrary of the
borrower to AGIF to such effect.
18
SCHEDULE-1 TO THE TRIPARTITE AGREEMENT BETWEEN THE
BORROWER, AGIF AND PUNJAB NATIONAL BANK
1. The lenders hereby agree and confirm that notwithstanding anything to the
contrary contained in or arising from or by virtue of or implied by or under any
document, the common security created or to be created by Mr
____________________________ (hereinafter referred to as the Borrower)
in favour of the lenders on the borrowers property (as mentioned in the
Tripartite Agreement) for securing:
2. The documents of title for the said property (as listed in AGIFs letter dated
______) shall be held by AGIF for itself and for and on behalf of Punjab
National Bank and in the event the loan from AGIF is repaid or the
employment of the Borrower is terminated for any reason whatsoever, the
documents of title for the said property shall continue to be retained and held
by AGIF for and on behalf of Punjab National Bank till information is received
in writing from Punjab National Bank that the loan account of the Borrower
has been adjusted in full.
The Borrower, a party herein, hereby authorizes AGIF to continue holding
the documents of title till Punjab National Bank confirms that the loan account
of the Borrower is adjusted.
4. The Lenders or either of them shall be entitled to bring a suit or other legal
proceeding or take any steps for enforcement of the security for realization of
its or their respective dues from the borrower and in the event of the
institution of any such suit or other legal proceeding, the lender so instituting
shall join the other lender as is not willing to join as party plaintiff as party
19
defendant in such suit or other legal proceedings. Prior to taking any action
for enforcement of its right over the property, each of the lenders concerned
shall duly inform the other of the same and each of them shall also consult and
co-operate with the other in respect of all matters pertaining to the property so far
as the same is practicable without affecting its own rights and each of them shall
at all time keep the other informed of all important matters coming to its
knowledge relating to the property or otherwise relating to the Borrower.
(a) First, there shall be paid out of such moneys or provisions made there out for
the costs, charges, expenses incurred for and incidental to the enforcement
of the security and/or realization or receipt of such moneys.
(b) Secondly, the balance of such moneys shall :
(i) In the event of the moneys so available for distribution being sufficient
to pay to each of them the full amount of the principal and other debts
due to each of the lenders be applied simultaneously towards the
payment to each of them of their respective principal and other dues in
full.
(ii) In the event of the moneys available for distribution being insufficient
to pay to each of the lenders the full amount of the principal and other
dues the same be applied Pari Passu as nearly as may be practicable
towards the principal and other dues. The amount distributable to
each of the lenders shall bear to the total distributable amount the
same proportion which the outstanding amounts of the dues to each of
such lenders bears to the aggregate to the outstanding amounts due
to both the Lenders. Any payment made to each of the Lenders in
accordance with the provisions of this clause shall be protanto
satisfaction of its the borrower such lenders shall be entitled to
enforce their rights against the borrower for the balance dues.
(c) Thirdly, the surplus, if any, out of such moneys shall be paid to the borrower
or the person or persons entitled thereto.
6. If any of the lenders shall receive any such money in respect of the property in
any other manner, the same shall be held in trust until required for appropriation
hereunder. Such lender shall also submit to the other lender a statement of
account from time to time respect to the amount realized by it from the
enforcement of the security.
7. As and when either of the loans are repaid by the borrower to the respective
lenders the lender being so repaid shall inform the other in writing at the address
mentioned hereinabove. The aforesaid provisions shall take effect between the
lenders and the persons claiming through them and without prejudice to any
rights they may have against the borrower.
20
MONTHLY INSTALMENT OF LOAN OF Rs.100000 ANNEXURE I
AT DIFFERENT INTEREST RATES (EX-TAX) FOR DIFFERENT LOAN REPAYMENT PERIODS ON ARREAR BASIS ROI COMPOUNDED MONTHLY
ROI/
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
YEARS
8.00 1213 1142 1082 1033 991 956 925 898 875 855 836 820 806 793 782 772 763 754 747 740 734
8.05 1216 1144 1085 1036 994 959 928 901 878 858 840 824 809 797 785 775 766 758 750 743 737
8.10 1219 1147 1088 1039 997 961 931 904 881 861 843 827 813 800 789 778 769 761 754 747 741
8.15 1221 1150 1091 1041 1000 964 934 907 884 864 846 830 816 803 792 782 773 764 757 750 744
8.20 1224 1152 1093 1044 1003 967 937 910 887 867 849 833 819 806 795 785 776 768 760 754 748
8.25 1227 1155 1096 1047 1006 970 940 913 890 870 852 836 822 810 798 788 779 771 764 757 751
8.30 1229 1158 1099 1050 1008 973 943 916 893 873 855 839 825 813 802 792 783 775 767 761 755
8.35 1232 1160 1102 1053 1011 976 946 919 896 876 858 843 829 816 805 795 786 778 771 764 758
8.40 1235 1163 1105 1056 1014 979 949 922 899 879 862 846 832 820 808 798 790 782 774 768 762
8.45 1237 1166 1107 1058 1017 982 952 925 902 882 865 849 835 823 812 802 793 785 778 771 765
8.50 1240 1169 1110 1061 1020 985 954 928 905 885 868 852 838 826 815 805 796 788 781 775 769
8.55 1243 1171 1113 1064 1023 988 957 931 909 889 871 855 842 829 818 809 800 792 785 778 772
8.60 1245 1174 1116 1067 1026 991 960 934 912 892 874 859 845 833 822 812 803 795 788 782 776
8.65 1248 1177 1118 1070 1029 994 963 937 915 895 877 862 848 836 825 815 807 799 792 785 780
8.70 1251 1180 1121 1073 1031 996 966 940 918 898 881 865 851 839 828 819 810 802 795 789 783
8.75 1253 1182 1124 1075 1034 999 969 943 921 901 884 868 855 843 832 822 813 806 799 792 787
8.80 1256 1185 1127 1078 1037 1002 972 947 924 904 887 872 858 846 835 826 817 809 802 796 790
8.85 1259 1188 1130 1081 1040 1005 975 950 927 907 890 875 861 849 839 829 820 813 806 799 794
8.90 1261 1191 1132 1084 1043 1008 978 953 930 911 893 878 865 853 842 832 824 816 809 803 797
8.95 1264 1193 1135 1087 1046 1011 981 956 933 914 897 881 868 856 845 836 827 820 813 807 801
9.00 1267 1196 1138 1090 1049 1014 985 959 936 917 900 885 871 859 849 839 831 823 816 810 805
9.05 1269 1199 1141 1093 1052 1017 988 962 940 920 903 888 874 863 852 843 834 827 820 814 808
9.10 1272 1202 1144 1095 1055 1020 991 965 943 923 906 891 878 866 855 846 838 830 823 817 812
9.15 1275 1204 1146 1098 1058 1023 994 968 946 926 909 894 881 869 859 849 841 834 827 821 815
9.20 1278 1207 1149 1101 1061 1026 997 971 949 930 913 898 884 873 862 853 845 837 830 824 819
9.25 1280 1210 1152 1104 1064 1029 1000 974 952 933 916 901 888 876 866 856 848 841 834 828 823
21
ROI/
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
YEARS
9.30 1283 1213 1155 1107 1067 1032 1003 977 955 936 919 904 891 879 869 860 852 844 838 832 826
9.35 1286 1215 1158 1110 1069 1035 1006 980 958 939 922 908 894 883 872 863 855 848 841 835 830
9.40 1289 1218 1161 1113 1072 1038 1009 984 962 942 926 911 898 886 876 867 859 851 845 839 834
9.45 1291 1221 1164 1116 1075 1041 1012 987 965 946 929 914 901 890 879 870 862 855 848 842 837
9.50 1294 1224 1166 1119 1078 1044 1015 990 968 949 932 917 904 893 883 874 866 858 852 846 841
9.55 1297 1227 1169 1121 1081 1047 1018 993 971 952 935 921 908 896 886 877 869 862 855 850 845
9.60 1299 1229 1172 1124 1084 1050 1021 996 974 955 939 924 911 900 890 881 873 865 859 853 848
9.65 1302 1232 1175 1127 1087 1053 1024 999 977 959 942 927 915 903 893 884 876 869 863 857 852
9.70 1305 1235 1178 1130 1090 1056 1027 1002 981 962 945 931 918 907 897 888 880 873 866 861 855
9.75 1308 1238 1181 1133 1093 1059 1030 1005 984 965 949 934 921 910 900 891 883 876 870 864 859
9.80 1310 1241 1184 1136 1096 1062 1033 1009 987 968 952 937 925 913 903 895 887 880 873 868 863
9.85 1313 1244 1186 1139 1099 1065 1037 1012 990 971 955 941 928 917 907 898 890 883 877 872 867
9.90 1316 1246 1189 1142 1102 1068 1040 1015 993 975 958 944 931 920 910 902 894 887 881 875 870
9.95 1319 1249 1192 1145 1105 1072 1043 1018 997 978 962 947 935 924 914 905 897 891 884 879 874
10.00 1322 1252 1195 1148 1108 1075 1046 1021 1000 981 965 951 938 927 917 909 901 894 888 882 878
10.05 1324 1255 1198 1151 1111 1078 1049 1024 1003 985 968 954 942 931 921 912 905 898 892 886 881
10.10 1327 1258 1201 1154 1114 1081 1052 1028 1006 988 972 958 945 934 924 916 908 901 895 890 885
10.15 1330 1260 1204 1157 1117 1084 1055 1031 1010 991 975 961 948 938 928 919 912 905 899 893 889
10.20 1333 1263 1207 1160 1120 1087 1058 1034 1013 994 978 964 952 941 931 923 915 909 903 897 892
10.25 1335 1266 1210 1163 1123 1090 1062 1037 1016 998 982 968 955 944 935 926 919 912 906 901 896
10.30 1338 1269 1212 1166 1126 1093 1065 1040 1019 1001 985 971 959 948 938 930 922 916 910 905 900
10.35 1341 1272 1215 1169 1129 1096 1068 1043 1022 1004 988 974 962 951 942 933 926 919 913 908 904
10.40 1344 1275 1218 1172 1132 1099 1071 1047 1026 1008 992 978 966 955 945 937 930 923 917 912 907
10.45 1347 1278 1221 1175 1135 1102 1074 1050 1029 1011 995 981 969 958 949 941 933 927 921 916 911
10.50 1349 1280 1224 1178 1138 1105 1077 1053 1032 1014 998 985 973 962 952 944 937 930 925 919 915
10.55 1352 1283 1227 1180 1141 1109 1080 1056 1035 1017 1002 988 976 965 956 948 940 934 928 923 918
10.60 1355 1286 1230 1183 1145 1112 1084 1060 1039 1021 1005 991 979 969 960 951 944 938 932 927 922
10.65 1358 1289 1233 1186 1148 1115 1087 1063 1042 1024 1008 995 983 972 963 955 948 941 936 930 926
22
ROI/
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
YEARS
10.70 1361 1292 1236 1189 1151 1118 1090 1066 1045 1027 1012 998 986 976 967 959 951 945 939 934 930
10.75 1363 1295 1239 1192 1154 1121 1093 1069 1049 1031 1015 1002 990 979 970 962 955 949 943 938 933
10.80 1366 1298 1242 1195 1157 1124 1096 1072 1052 1034 1019 1005 993 983 974 966 959 952 947 942 937
10.85 1369 1301 1245 1198 1160 1127 1099 1076 1055 1037 1022 1009 997 986 977 969 962 956 950 945 941
10.90 1372 1303 1248 1201 1163 1130 1103 1079 1058 1041 1025 1012 1000 990 981 973 966 960 954 949 945
10.95 1375 1306 1251 1205 1166 1133 1106 1082 1062 1044 1029 1015 1004 993 984 977 969 963 958 953 949
11.00 1378 1309 1254 1208 1169 1137 1109 1085 1065 1047 1032 1019 1007 997 988 980 973 967 961 957 952
11.05 1380 1312 1257 1211 1172 1140 1112 1089 1068 1051 1036 1022 1011 1001 992 984 977 971 965 960 956
11.10 1383 1315 1259 1214 1175 1143 1115 1092 1072 1054 1039 1026 1014 1004 995 987 980 974 969 964 960
11.15 1386 1318 1262 1217 1178 1146 1119 1095 1075 1058 1042 1029 1018 1008 999 991 984 978 973 968 964
11.20 1389 1321 1265 1220 1181 1149 1122 1098 1078 1061 1046 1033 1021 1011 1002 995 988 982 976 972 967
11.25 1392 1324 1268 1223 1185 1152 1125 1102 1082 1064 1049 1036 1025 1015 1006 998 991 985 980 975 971
11.30 1395 1327 1271 1226 1188 1156 1128 1105 1085 1068 1053 1040 1028 1018 1010 1002 995 989 984 979 975
11.35 1397 1330 1274 1229 1191 1159 1131 1108 1088 1071 1056 1043 1032 1022 1013 1006 999 993 988 983 979
11.40 1400 1333 1277 1232 1194 1162 1135 1112 1092 1074 1060 1047 1035 1025 1017 1009 1002 997 991 987 983
11.45 1403 1335 1280 1235 1197 1165 1138 1115 1095 1078 1063 1050 1039 1029 1020 1013 1006 1000 995 991 986
11.50 1406 1338 1283 1238 1200 1168 1141 1118 1098 1081 1066 1054 1042 1033 1024 1016 1010 1004 999 994 990
11.55 1409 1341 1286 1241 1203 1171 1144 1121 1102 1085 1070 1057 1046 1036 1028 1020 1014 1008 1003 998 994
11.60 1412 1344 1289 1244 1206 1175 1148 1125 1105 1088 1073 1061 1049 1040 1031 1024 1017 1011 1006 1002 998
11.65 1415 1347 1292 1247 1209 1178 1151 1128 1108 1091 1077 1064 1053 1043 1035 1027 1021 1015 1010 1006 1002
11.70 1417 1350 1295 1250 1213 1181 1154 1131 1112 1095 1080 1068 1057 1047 1039 1031 1025 1019 1014 1009 1006
11.75 1420 1353 1298 1253 1216 1184 1157 1135 1115 1098 1084 1071 1060 1051 1042 1035 1028 1023 1018 1013 1009
11.80 1423 1356 1301 1256 1219 1187 1161 1138 1118 1102 1087 1075 1064 1054 1046 1038 1032 1026 1021 1017 1013
11.85 1426 1359 1304 1259 1222 1191 1164 1141 1122 1105 1091 1078 1067 1058 1049 1042 1036 1030 1025 1021 1017
11.90 1429 1362 1307 1262 1225 1194 1167 1145 1125 1109 1094 1082 1071 1061 1053 1046 1040 1034 1029 1025 1021
11.95 1432 1365 1310 1266 1228 1197 1170 1148 1129 1112 1098 1085 1074 1065 1057 1050 1043 1038 1033 1029 1025
12.00 1435 1368 1313 1269 1231 1200 1174 1151 1132 1115 1101 1089 1078 1069 1060 1053 1047 1041 1037 1032 1029
23
MONTHLY INSTALMENT OF LOAN OF Rs.100000
AT DIFFERENT INTEREST RATES (EX-TAX) FOR DIFFERENT LOAN REPAYMENT PERIODS ON ADVANCE/ UPFRONT BASIS ROI COMPOUNDED MONTHLY
ROI/
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
YEARS
8.00 1205 1134 1075 1026 985 949 919 892 869 849 831 815 801 788 777 767 758 749 742 735 729
8.05 1208 1137 1078 1029 988 952 922 895 872 852 834 818 804 791 780 770 761 753 745 738 732
8.10 1210 1139 1081 1032 990 955 925 898 875 855 837 821 807 795 783 773 764 756 749 742 736
8.15 1213 1142 1083 1034 993 958 927 901 878 858 840 824 810 798 787 777 767 759 752 745 739
8.20 1216 1145 1086 1037 996 961 930 904 881 861 843 827 813 801 790 780 771 763 755 749 743
8.25 1218 1147 1089 1040 999 964 933 907 884 864 846 831 817 804 793 783 774 766 759 752 746
8.30 1221 1150 1091 1043 1002 966 936 910 887 867 849 834 820 807 796 786 777 769 762 756 750
8.35 1223 1152 1094 1045 1004 969 939 913 890 870 852 837 823 811 800 790 781 773 766 759 753
8.40 1226 1155 1097 1048 1007 972 942 916 893 873 856 840 826 814 803 793 784 776 769 762 757
8.45 1229 1158 1100 1051 1010 975 945 919 896 876 859 843 829 817 806 796 787 779 772 766 760
8.50 1231 1160 1102 1054 1013 978 948 922 899 879 862 846 833 820 809 800 791 783 776 769 764
8.55 1234 1163 1105 1056 1016 981 951 925 902 882 865 849 836 824 813 803 794 786 779 773 767
8.60 1236 1166 1108 1059 1018 984 954 928 905 885 868 853 839 827 816 806 797 790 783 776 770
8.65 1239 1168 1110 1062 1021 986 957 931 908 888 871 856 842 830 819 810 801 793 786 780 774
8.70 1242 1171 1113 1065 1024 989 959 934 911 892 874 859 845 833 822 813 804 796 789 783 777
8.75 1244 1174 1116 1068 1027 992 962 937 914 895 877 862 849 837 826 816 808 800 793 787 781
8.80 1247 1176 1119 1070 1030 995 965 940 917 898 880 865 852 840 829 820 811 803 796 790 785
8.85 1249 1179 1121 1073 1033 998 968 943 920 901 884 868 855 843 832 823 814 807 800 794 788
8.90 1252 1182 1124 1076 1035 1001 971 946 923 904 887 872 858 846 836 826 818 810 803 797 792
8.95 1255 1184 1127 1079 1038 1004 974 949 926 907 890 875 861 850 839 830 821 814 807 801 795
9.00 1257 1187 1130 1082 1041 1007 977 952 929 910 893 878 865 853 842 833 825 817 810 804 799
9.05 1260 1190 1132 1084 1044 1010 980 955 933 913 896 881 868 856 846 836 828 820 814 808 802
9.10 1263 1193 1135 1087 1047 1013 983 958 936 916 899 884 871 859 849 840 831 824 817 811 806
9.15 1265 1195 1138 1090 1050 1015 986 961 939 919 903 888 874 863 852 843 835 827 821 815 809
9.20 1268 1198 1141 1093 1053 1018 989 964 942 923 906 891 878 866 856 846 838 831 824 818 813
9.25 1271 1201 1143 1096 1055 1021 992 967 945 926 909 894 881 869 859 850 842 834 828 822 816
9.30 1273 1203 1146 1098 1058 1024 995 970 948 929 912 897 884 873 862 853 845 838 831 825 820
24
ROI/
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
YEARS
9.35 1276 1206 1149 1101 1061 1027 998 973 951 932 915 901 888 876 866 857 848 841 835 829 824
9.40 1278 1209 1152 1104 1064 1030 1001 976 954 935 918 904 891 879 869 860 852 845 838 832 827
9.45 1281 1212 1154 1107 1067 1033 1004 979 957 938 922 907 894 883 872 863 855 848 842 836 831
9.50 1284 1214 1157 1110 1070 1036 1007 982 960 941 925 910 897 886 876 867 859 852 845 839 834
9.55 1286 1217 1160 1113 1073 1039 1010 985 963 945 928 913 901 889 879 870 862 855 849 843 838
9.60 1289 1220 1163 1115 1076 1042 1013 988 967 948 931 917 904 893 883 874 866 859 852 847 841
9.65 1292 1222 1166 1118 1079 1045 1016 991 970 951 934 920 907 896 886 877 869 862 856 850 845
9.70 1294 1225 1168 1121 1082 1048 1019 994 973 954 938 923 911 899 889 881 873 866 859 854 849
9.75 1297 1228 1171 1124 1084 1051 1022 997 976 957 941 927 914 903 893 884 876 869 863 857 852
9.80 1300 1231 1174 1127 1087 1054 1025 1000 979 960 944 930 917 906 896 887 880 873 866 861 856
9.85 1303 1233 1177 1130 1090 1057 1028 1003 982 964 947 933 921 909 900 891 883 876 870 864 859
9.90 1305 1236 1180 1133 1093 1060 1031 1007 985 967 951 936 924 913 903 894 887 880 874 868 863
9.95 1308 1239 1182 1135 1096 1063 1034 1010 988 970 954 940 927 916 906 898 890 883 877 872 867
10.00 1311 1242 1185 1138 1099 1066 1037 1013 992 973 957 943 930 920 910 901 894 887 881 875 870
10.05 1313 1244 1188 1141 1102 1069 1040 1016 995 976 960 946 934 923 913 905 897 890 884 879 874
10.10 1316 1247 1191 1144 1105 1072 1043 1019 998 980 964 950 937 926 917 908 901 894 888 882 878
10.15 1319 1250 1194 1147 1108 1075 1046 1022 1001 983 967 953 941 930 920 912 904 897 891 886 881
10.20 1321 1253 1196 1150 1111 1078 1049 1025 1004 986 970 956 944 933 924 915 908 901 895 890 885
10.25 1324 1255 1199 1153 1114 1081 1053 1028 1007 989 973 959 947 936 927 919 911 904 899 893 889
10.30 1327 1258 1202 1156 1117 1084 1056 1031 1011 992 977 963 951 940 930 922 915 908 902 897 892
10.35 1329 1261 1205 1159 1120 1087 1059 1035 1014 996 980 966 954 943 934 926 918 912 906 900 896
10.40 1332 1264 1208 1161 1123 1090 1062 1038 1017 999 983 969 957 947 937 929 922 915 909 904 899
10.45 1335 1267 1211 1164 1126 1093 1065 1041 1020 1002 986 973 961 950 941 932 925 919 913 908 903
10.50 1338 1269 1214 1167 1129 1096 1068 1044 1023 1005 990 976 964 954 944 936 929 922 916 911 907
10.55 1340 1272 1216 1170 1132 1099 1071 1047 1026 1009 993 979 967 957 948 939 932 926 920 915 910
10.60 1343 1275 1219 1173 1135 1102 1074 1050 1030 1012 996 983 971 960 951 943 936 929 924 919 914
10.65 1346 1278 1222 1176 1137 1105 1077 1053 1033 1015 1000 986 974 964 955 947 939 933 927 922 918
25
ROI/
10 11 12 13 14 15 16 17 18 19 20 21 22 23 24 25 26 27 28 29 30
YEARS
10.70 1349 1281 1225 1179 1140 1108 1080 1057 1036 1018 1003 989 978 967 958 950 943 937 931 926 922
10.75 1351 1283 1228 1182 1143 1111 1083 1060 1039 1022 1006 993 981 971 962 954 946 940 935 930 925
10.80 1354 1286 1231 1185 1146 1114 1086 1063 1042 1025 1010 996 984 974 965 957 950 944 938 933 929
10.85 1357 1289 1234 1188 1149 1117 1090 1066 1046 1028 1013 1000 988 978 969 961 954 947 942 937 933
10.90 1359 1292 1236 1191 1152 1120 1093 1069 1049 1031 1016 1003 991 981 972 964 957 951 945 941 936
10.95 1362 1295 1239 1194 1155 1123 1096 1072 1052 1035 1019 1006 995 984 976 968 961 955 949 944 940
11.00 1365 1297 1242 1197 1158 1126 1099 1076 1055 1038 1023 1010 998 988 979 971 964 958 953 948 944
11.05 1368 1300 1245 1200 1161 1129 1102 1079 1059 1041 1026 1013 1001 991 983 975 968 962 956 952 947
11.10 1370 1303 1248 1202 1164 1132 1105 1082 1062 1045 1029 1016 1005 995 986 978 971 965 960 955 951
11.15 1373 1306 1251 1205 1167 1135 1108 1085 1065 1048 1033 1020 1008 998 990 982 975 969 964 959 955
11.20 1376 1309 1254 1208 1170 1139 1111 1088 1068 1051 1036 1023 1012 1002 993 985 979 973 967 963 959
11.25 1379 1311 1257 1211 1174 1142 1115 1091 1072 1054 1040 1027 1015 1005 997 989 982 976 971 966 962
11.30 1382 1314 1260 1214 1177 1145 1118 1095 1075 1058 1043 1030 1019 1009 1000 993 986 980 975 970 966
11.35 1384 1317 1262 1217 1180 1148 1121 1098 1078 1061 1046 1033 1022 1012 1004 996 989 984 978 974 970
11.40 1387 1320 1265 1220 1183 1151 1124 1101 1081 1064 1050 1037 1026 1016 1007 1000 993 987 982 977 973
11.45 1390 1323 1268 1223 1186 1154 1127 1104 1085 1068 1053 1040 1029 1019 1011 1003 997 991 986 981 977
11.50 1393 1326 1271 1226 1189 1157 1130 1107 1088 1071 1056 1044 1032 1023 1014 1007 1000 994 989 985 981
11.55 1395 1328 1274 1229 1192 1160 1133 1111 1091 1074 1060 1047 1036 1026 1018 1010 1004 998 993 989 985
11.60 1398 1331 1277 1232 1195 1163 1137 1114 1094 1078 1063 1050 1039 1030 1021 1014 1007 1002 997 992 988
11.65 1401 1334 1280 1235 1198 1166 1140 1117 1098 1081 1066 1054 1043 1033 1025 1018 1011 1005 1000 996 992
11.70 1404 1337 1283 1238 1201 1170 1143 1120 1101 1084 1070 1057 1046 1037 1028 1021 1015 1009 1004 1000 996
11.75 1407 1340 1286 1241 1204 1173 1146 1124 1104 1088 1073 1061 1050 1040 1032 1025 1018 1013 1008 1003 1000
11.80 1409 1343 1289 1244 1207 1176 1149 1127 1108 1091 1077 1064 1053 1044 1036 1028 1022 1016 1012 1007 1003
11.85 1412 1346 1292 1247 1210 1179 1153 1130 1111 1094 1080 1068 1057 1047 1039 1032 1026 1020 1015 1011 1007
11.90 1415 1349 1295 1250 1213 1182 1156 1133 1114 1098 1083 1071 1060 1051 1043 1036 1029 1024 1019 1015 1011
11.95 1418 1351 1297 1253 1216 1185 1159 1137 1117 1101 1087 1074 1064 1054 1046 1039 1033 1027 1023 1018 1015
12.00 1421 1354 1300 1256 1219 1188 1162 1140 1121 1104 1090 1078 1067 1058 1050 1043 1037 1031 1026 1022 1018
26
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