Affordable Housing for All' is an important policy agenda of the Government of India. Accordingly The Cabinet Committee for Economic Affairs has approved an Interest Subsidy Scheme for Housing the Urban Poor in order to ameliorate the living conditions of Economically Weaker Section/LIG population in urban areas. Primary objective of the scheme is to provide interest subsidy support.
Objective:
The key objective of the scheme is to enable Economically Weaker Sections (EWS) and Low Income Group (LIG) households to avail affordable housing loans for purchase of house/construction of new house.
Definition:
a) EWS- Economically Weaker Sections are those households having monthly income upto Rs.3300/-
b) LIG- Low Income Groups are those households having monthly income between Rs.3301/- to Rs. 7300/-
Target Group:
Individuals /NGOs for on lending to their group members. Preference will be given to SCs, STs, Minorities, Person with disabilities and Women beneficiaries in accordance with their proportion in the total population of city/urban agglomerate during the 2001 census.
Applicants planning to form cooperative group housing societies or organizations like Employees Welfare Housing, Labour Housing, etc. should be given preference and whenever possible construction of houses by such cooperatives by way of 1+3 storied buildings should be promoted so that cost of land is shared among beneficiaries. However, this is not a mandatory requirement. Both individuals as well as group Housing borrowers are equally eligible under the scheme.
Target Borrower:
Identification of beneficiaries will be undertaken by Urban Local Bodies or Local Nodal Agencies and they will assist the borrowers in paper works and procedure of bank loan. However the borrower would be free to approach and negotiate a loan under the scheme directly with the bank branch.
Preference:
Preference will be given to Scheduled Caste, Scheduled Tribe, Minorities, Person with disabilities and Women beneficiaries in accordance with their proportion in the total population of the city/urban agglomerate during the 2001 census
Stipulations:
The ultimate beneficiaries should not own a house in his/her name or in the name of his/her spouse or any dependent child. But such beneficiaries should own land in his name in case of application for construction of new house.
Area of operation:
Urban area. Zonal Offices will be advised to submit us a list of branches at urban area for implementation of the scheme.
Nodal Agency:
NHB and HUDCO were selected by the Government of India to act as intermediary financial institutions that would be responsible for administering the subsidy. Before implementation the Bank has to sign a MOU with any of the two organizations. We have signed MOU with NHB.
Loan amount:
a) EWS- Maximum loan of Rs.1 lac ( Rs one Lac Only) for a house of at least 25 sq mts.
b) LIG- Maximum loan of Rs.1.60 lac( Rs one Lac sixty thousand Only) for a house of at least 40 sq mts. However subsidy will be available for loan upto Rs. 1 lac only.
Disbursement:
Disbursement will be made on a phased manner depending upon the progress of construction. Branch will monitor the construction of the dwelling units financed under the scheme, including the approvals for the building design, infrastructure facilities etc. as also the quality of the construction and verify through site visits etc. the expenditure incurred upto different stages of construction. In case of construction disbursement may be done by debiting the respective loan account and crediting the savings bank account of the borrower. However in case of purchase of a ready built house the payment should be made directly to the vendor by issuing Demand Draft/ Pay Order as the case may be by debiting the loan account of the borrower.
Rate of Interest:
Interest @8.50% p.a. for first 5 years with a provision to reset after 5 years from the date of drawal of first installment for all loan under the scheme.
Sanctioning Authority:
All the loan applications under the scheme will be processed and sanctioned at the Retail Processing Centres at Zonal Offices and in case there is no Retail Processing Centres at any Zonal Office, at the branches identified by the respective Zonal Office. On receipt of the sanctioned proposals the branch will disbursed the loan following all the stipulation noted by the Retail Processing Centres at Zonal Office/Processing Cell.
However before sanctioning any loan it should be ensured that the borrower have sufficient repaying capacity based on the average monthly income of the applicant for last three years and monthly family expenditure depending upon the size of family.
Pre-payment charges:
There will be no pre-payment charges for any loan sanctioned under the scheme.
Subsidy:
The subsidy will be 5% p.a. on interest charged on the admissible loan amount for both EWS and LIG, over the full period of the loan for construction or acquisition of a new house.
The Net Present Value (NPV) of the subsidy will be arrived at on the basis of notional discount rate of 9% p.a. (equivalent to Government Security rate) for the period of the loan and on the interest chargeable at the time the loan is contracted.
The subsidy will be credited upfront to the borrowers account and interest will be calculated on the net amount of loan at the agreed rate of interest.
Procedure for claiming Subsidy:
Participating branches will claim interest subsidy for the entire period of any loan disbursed during the quarter to Head Office, Priority Sector Department through their respective Zonal Offices.
Branches should submit their claim within 3 days of close of a quarter to their respective Zonal Offices and the Zonal Offices in turn will submit it to Head Office, Priority Sector Department within 7 days of close of a quarter.
Repayment:
Loan will be repaid in 180 to 240 EMI depending upon the income of the borrower. However branches may prefer for 20 years repayment, to get full benefits of Interest Subsidy and lower EMI.
HSBC BANK HOME LOAN
Nothing would delight us more than to help you buy your dream home. HSBC Home Loans make it easier for you to move in as soon as possible without putting a strain on your wallet. Your dream home is closer than you think. Apply for a home loan today.
Your dream home, a reality
Loan requirement - We offer you loans ranging from Rs. 5 lakhs upto Rs. 5 crore*
Property types - We offer loans to Resident Indians and NRIs for ready property, self-construction and home improvement.
Loan tenure - Loans are available for tenures upto 25 years.
Flexibility, savings... more!
Home Loan repayment options - Choose between fixed and floating rate home loans. You also have the option of switching from a floating rate home loan to a fixed rate home loan once a year at no extra cost. ***
No penalty option - You can opt to pre-pay up to 25% of your loan every year. Pre-payment is permitted after a minimum of 6 months following loan disbursal.
Tax benefits - Resident Indians are eligible for certain tax benefits on principal and interest components of a housing loan under the Income Tax Act, 1961.
Your dream home, a reality
Loan requirement - We offer you loans ranging from Rs. 5 lakhs upto Rs. 5 crore*
Property types - We offer loans to Resident Indians and NRIs for ready property, self-construction and home improvement.
Loan tenure - Loans are available for tenures upto 25 years.
Flexibility, savings... more!
Home Loan repayment options - Choose between fixed and floating rate home loans. You also have the option of switching from a floating rate home loan to a fixed rate home loan once a year at no extra cost. ***
No penalty option - You can opt to pre-pay up to 25% of your loan every year. Pre-payment is permitted after a minimum of 6 months following loan disbursal.
Tax benefits - Resident Indians are eligible for certain tax benefits on principal and interest components of a housing loan under the Income Tax Act, 1961.
BANK OF BARODA HOME LOAN
Baroda Home Loan
Be a proud home owner in 6 days
Bank of Baroda presents yet another innovative product in the form of Baroda Home Loans to NRIs / PIOs, a unique housing loan facility designed specially for Non Resident Indians (NRI) and Person of Indian Origin (PIO).
Home Loan is available for:
Purchase of new / old dwelling unit.
Construction of house.
Purchase of plot of land for construction of a house.
Repaying a loan already taken from other Housing Finance Company / Bank.
Repayment period up to 25 years (floating rate option).
For detailed information on the benefits you can avail of, and terms and conditions to follow for the same.
Be a proud home owner in 6 days
Bank of Baroda presents yet another innovative product in the form of Baroda Home Loans to NRIs / PIOs, a unique housing loan facility designed specially for Non Resident Indians (NRI) and Person of Indian Origin (PIO).
Home Loan is available for:
Purchase of new / old dwelling unit.
Construction of house.
Purchase of plot of land for construction of a house.
Repaying a loan already taken from other Housing Finance Company / Bank.
Repayment period up to 25 years (floating rate option).
For detailed information on the benefits you can avail of, and terms and conditions to follow for the same.
MCB HOME LOAN
PYARA GHAR
Owning your dream home has never been easier. MCB ‘Pyara Ghar’ is the most sensible option for purchasing, building, or renovating your new/existing home. It offers you a range of financing options to help you realize your dreams. After all ", Apna Ghar Pyara Ghar".
Purpose
HP: Purchase of Ready property.
HR: Construction of house on land owned by borrower/s and should be disbursed in tranches.
BTF: Payment to the relevant bank plus a portion paid to the customer for documented end use other than investments in real estate and capital market.
PC: Purchase of land / plot and construction on it which should be disbursed in tranches.
Owning your dream home has never been easier. MCB ‘Pyara Ghar’ is the most sensible option for purchasing, building, or renovating your new/existing home. It offers you a range of financing options to help you realize your dreams. After all ", Apna Ghar Pyara Ghar".
Purpose
HP: Purchase of Ready property.
HR: Construction of house on land owned by borrower/s and should be disbursed in tranches.
BTF: Payment to the relevant bank plus a portion paid to the customer for documented end use other than investments in real estate and capital market.
PC: Purchase of land / plot and construction on it which should be disbursed in tranches.
IDBI BANK HOME LOAN
HOME LOAN
Home, sweet home, built out of your dreams. A place where you return after a hard day's work and relax, a place where you share precious moments with your family. A place that gives you a sense of belonging. IDBI Bank helps you realise your long cherished dream of owning your home through hassle free and customer friendly home loans.
Presenting IDBI Bank's ultra flexible home loan you have been looking for. We realise what owning your home means to you and your family.
You can avail of the Home Loans for constructing a home, purchasing a ready built house / flat, residential plot and even for re-financing existing loans you may have availed from other banks or housing finance companies. Click here to apply.
Advantages of IDBI Bank Ultra Flexible Home Loans
Maximum Funding
Flexibility of choosing between Floating or Fixed interest rate
Attractive rate of interest
EMI on daily reducing balance
Personalised doorstep service
Simple documentation
Legal and technical assistance
Balance transfer facility
Reassessment and adjustment of applicant's loan eligibility in case of change of income and residence status
Features
Tenor of a home loan can be up to 25 years for a resident individual whereas for NRIs the maximum tenure is 15 years subject to maximum age of 60 years at maturity.
Loan can be applied for a maximum of 90% of the property value subject to credit discretion.
Security for the loan is a first mortgage of the property to be financed, normally by way of deposit of the title deeds or such collateral security as may be necessary.
Title to the property should be clear and free from encumbrance, i.e., without any pending legal litigation adversely affecting the ownership of the property.
Other parameters considered include an account of your age, income, number of dependents, financial stability and co-applicant’s income.
Tax Benefits
As per the current finance bill you can get:
A maximum deduction of Rs. 1,50,000 on your income towards interest paid on your home loans u/s 24
A maximum deduction of Rs. 1,00,000 on the principal repaid u/s 80 CCE
The above benefits are available subject to you fulfilling certain conditions, for which you should refer the IT Act 1961
Home, sweet home, built out of your dreams. A place where you return after a hard day's work and relax, a place where you share precious moments with your family. A place that gives you a sense of belonging. IDBI Bank helps you realise your long cherished dream of owning your home through hassle free and customer friendly home loans.
Presenting IDBI Bank's ultra flexible home loan you have been looking for. We realise what owning your home means to you and your family.
You can avail of the Home Loans for constructing a home, purchasing a ready built house / flat, residential plot and even for re-financing existing loans you may have availed from other banks or housing finance companies. Click here to apply.
Advantages of IDBI Bank Ultra Flexible Home Loans
Maximum Funding
Flexibility of choosing between Floating or Fixed interest rate
Attractive rate of interest
EMI on daily reducing balance
Personalised doorstep service
Simple documentation
Legal and technical assistance
Balance transfer facility
Reassessment and adjustment of applicant's loan eligibility in case of change of income and residence status
Features
Tenor of a home loan can be up to 25 years for a resident individual whereas for NRIs the maximum tenure is 15 years subject to maximum age of 60 years at maturity.
Loan can be applied for a maximum of 90% of the property value subject to credit discretion.
Security for the loan is a first mortgage of the property to be financed, normally by way of deposit of the title deeds or such collateral security as may be necessary.
Title to the property should be clear and free from encumbrance, i.e., without any pending legal litigation adversely affecting the ownership of the property.
Other parameters considered include an account of your age, income, number of dependents, financial stability and co-applicant’s income.
Tax Benefits
As per the current finance bill you can get:
A maximum deduction of Rs. 1,50,000 on your income towards interest paid on your home loans u/s 24
A maximum deduction of Rs. 1,00,000 on the principal repaid u/s 80 CCE
The above benefits are available subject to you fulfilling certain conditions, for which you should refer the IT Act 1961
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