UCO BANK'S ATTRACTIVE LOAN SCHEMES

Being a Commercial Bank, giving Loans and Advances is among our primary activities. Apart from our participation in meeting both Term Loan and Working Capital requirements of Agriculture sector, Trade and Service sector, Large/Medium and Small Scale Industries sector, Infrastructure sector etc. including taking care of their Export/Import and non-fund based needs like Letter of Credit, Bank Guarantee etc., we have a fairly large basket of loan products specially designed to suit your personal needs. Salient features of some of the more attractive Personal Loan Schemes are described below.

UCO SHELTER

This housing finance scheme brings to you an excellent opportunity to have your own house or flat. The scheme has been carefully tailored to suit your requirements and match your capacity. The reasonable rate of interest that you pay will be calculated on reducing balance, i.e. you do not have to pay interest on the loan installments actually repaid from the date of such repayment.

Eligibility

You are eligible for a loan under UCO SHELTER singly, or jointly as husband-wife/parent-son/parent-daughter, if you are

Indian resident having regular source of income.

Minimum 21 years of age.

Maximum 65 years of age inclusive of repayment period

Singly or Jointly as Husband-Wife, Parent-Son & Parent-Daughter

Maximum 75 years of age for Senior Citizens availing finance to secure Shelter in Old

Age Home against full coverage by Bank’s own Term Deposit.

Purpose

Purchase of new independent house/ready built flat for residential purpose.

Construction of independent house on the site already owned by the applicant or site proposed to be purchased from own sources.

Purchase of old house/flat not more than 30 years old, free from tenancy and constructed as per approved plan.

Extension/Repair/Renovation of existing house/flat not more than 50 years old.

Takeover of home loans availed from other banks/FIs subject to certain terms.

Furnishing of house to be constructed/acquired with UCO Shelter Loan.

Loan for more than one purpose is allowed

UCO Shelter Loanee may be allowed to avail personal loan also under certain conditions.

Purchase of plot of land for housing purpose under certain conditions.

Quantum of loan

The quantum of loan will be decided as per loan entitlement subject to a maximum of 85% of the total project cost of construction/purchase price of house/flat. Required margin of 15% may be by way of cost of land.

Quantum of loan for furnishing will be 75% of cost of such furnishing subject to a ceiling of 20% of loan eligible for construction/acquisition of house/flat.

The area-specific maximum limits for construction/purchase are as under :

Rural Areas : Rs.25 Lac

Semi-urban/Urban/Metro Areas : Rs.100.00 Lac

Maximum limits for Repair/Extension/Renovation are Rs.7.50 lac in rural areas and

Rs.25.00 lac in Metro/Urban/Semi-Urban areas.

Purchase of Land – financing the cost of land in deserving cases upto 50% of cost of land purchased from Urban Development Authorities/Govt. Bodies subject to the ceiling of 30% of the project cost (i.e. Cost of land + Construction Cost).

Loan Entitlement

Within the above limits, loan entitlement will depend on the following income criteria:

Monthly income should be equal to/more than EMI + Rs.4,000/- in case of a family with up to four members – Salaried/Non-salaried and agriculturist and bank’s own staff are entitled for loan

With increase in number of members, monthly income requirement goes up progressively by Rs.1,000/- for each additional member. Income of spouse & major children may be considered for enhancing the loan entitlement on their agreeing to stand as guarantor/ co-obligant

Loan limit can be enhanced if additional liquid security is offered.

Second Loan- Allowed for repair/renovation/extension of existing house after one year of first loan with minimum margin requirement of 25%

Processing Fee

0.5% of the loan amount minimum Rs.1000.00. Only 0.25% payable on issuance of in-principle sanction. Balance amount payable on final sanction.

No processing fees for take over loan.

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Repayment

The maximum period of repayment is 25 years inclusive of moratorium. However, the monthly interest charged during the moratorium period will have to be paid. The entire loan will have to be adjusted before retirement or 65 years of age, whichever is earlier. Repayment may be made by deduction from monthly salary or by means of post dated cheques. Flexibility in repayment is permissible through stepped up EMIs and in case of farmer borrower, repayment is linked to crop cycles. Both in case of Salaried and non salaried person, repayment period may be enhanced to certain period over and above the prescribed period depending upon repaying capacity of the co-applicant.

Prepayment charge

2% of the prepaid amount, if the loan is prepaid within 3 years. No prepayment charges thereafter. However, no pre-payment charges are to levied if loan is pre-paid from own source.

Tax Benefits

Tax relief on principal and interest components of this loan would be available as per provisions prevailing under Income Tax Act.

Insurance

Insurance cover on property under UCO Griha Raksha Yojna Scheme of NICL and personal accident benefit to the borrower is available on death only to cover the outstanding balance under UCO Griha Lakshmi Yojana Scheme (UCOGLYS). Group insurance cover to home loan borrowers is available against any type of death from Rs.50000/- to Rs.100.00 lac under UCOGLYS..

  UCO CAR

This is an easy finance scheme for purchase of a new car as well as second hand vehicle not older than 5 years and economic life of a vehicle should be taken as 8 (eight) years from the date of manufacture of the vehicle.

Eligibility

Salaried Persons

The applicant must be a permanent employee having completed 2 years of service and remaining period of service of more than 5 years. The minimum monthly take-home pay must be Rs. 7,500/- + EMI.

Professional & Businessmen

Minimum income should be Rs. 1.20 Lac per annum as per Income Tax Return/Assessment. LIC Policy equal to the amount of loan should be assigned in favour of the Bank.

Quantum of loan

The amount of loan would be 85% of the cost of vehicle or Rs. 7.50 lacs whichever is lower in case of purchase of new car. For purchase of old car, the maximum quantum would be 60% ( if age of car is more than 4 years old ) and 70% ( if the age of car is upto 4 years old) of the cost of the vehicle or Rs.3.50 lacs maximum. For second hand vehicle "certificate of fitness" and valuation certificate is required.

1% service charge is applicable subject to a ceiling of Rs.1000/- only.

Repayment

The loan amount together with interest will have to be repaid within a maximum of 60 months. In case where at source deduction is not possible, repayment should be made by post dated cheques in 60 installments. In case of second hand/Pre-used vehicle the loan with interest should be repaid within the residual economic life of the vehicle but not exceeding 36 installments.

0.5% charge is levied on pre-paid amount if loan limit is above Rs. 2 Lac.

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UCO TRADER

It is a loan for financing working capital and Term Loan needs of Retail and Wholesale trading activities other than Export. Retail and Wholesale trade in various types of commodities (not services) excluding those items which are specifically prohibited/restricted by the Bank, are financed through this scheme. Fund based Advance is granted by way of Cash Credit against stock as well as Book debt and Term Loan for acquisition of fixed assets to run the trade and business.

Eligibility

Existing enterprises engaged in business for at least 2 years and earning profit during the last 2 years.
New trading unit started by existing UCO Trader borrowers or their close relatives/ allied/associate/connected concern under certain terms

New trading units as well as units which have not completed two years can be financed maximum upto Rs.10 lac under certain terms

Quantum of loan

Minimum Rs. 1 Lac and Maximum Rs 200 Lac

Within fund based limit of Rs. 200 lac, term loan up to Rs. 25 lac can also be sanctioned for acquisition of fixed assets. Repayment period of Term Loan not to exceed 60 months. Besides the above quantum of fund based limit, NFB limit by way of Inland LC/Bank Guarantee if needed, may be issued maximum up to 50% of FB working capital limit.

Salient features

Margin

• No margin is required for Cash Credit in case of existing units & 20/25% for new units while computing drawing power
• Margin for Term Loan, LC & BG is 25%
• Application is simple; Balance Sheet is not required for limit up to Rs 10 lac and not compulsory for limit below Rs 50 lac subject to certain conditions.

Security

• Primary-Hypothecation of stocks and book debt.
• Collateral-100% for Cash Credit (against stocks only ) and Term Loan, 125% for Cash Credit(against stocks and debtors)

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Processing Charges- 0.50% of fund based limit, 0.25% of Non-Fund based limit.
For more details please contact your nearest UCO Bank branch.

EDUCATION LOAN

Click here to apply online Download UCO Education Loan Application Form - (pdf version)

Scope:

The scheme extends a helping hand to meritorious students desirous of pursuing basic/higher/professional/technical education either in India or abroad. The parents will become co-borrowers with their dependant (student) if the latter applies for educational loan.

Studies in India

School education including plus 2 stage.

Graduation courses leading to degrees like B.A., B.Sc., B.Com. etc.

Post Graduate courses leading to Masters degrees as also Ph.D.

Professional courses in Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.

Computer Certificate courses of reputed institutes accredited to Universities or DoE.

Courses like ICWA, CA, CFA, etc.

Studies Abroad

Graduation : Job oriented professional / technical courses offered by reputed Universities.

Post Graduation : MCA, MBA, MS, etc.

Courses conducted by CIMA – London, CPA in U.S.A., etc.

Eligibility

Applicant must have secured admission to professional/technical course through Entrance Test/Selection Process.

Secured admission to foreign University / Institution.

No maximum or minimum income is prescribed for parents/family.

Age limit :

18 to 25 years for graduation course – may be extended from 28-30 years for general and SC/ST candidates respectively.

21 to 28 years for post-graduation course etc. – may be extended from 30 -33 years for general & SC/ST candidates respectively.

Quantum of loan

Need based finance subject to repaying capacity of parents/students with following ceilings :

Studies in India : Maximum Rs. 10.00 Lac

Studies Abroad : Maximum Rs. 20.00 Lac.

The loan amount under the scheme would be for meeting the following expenses :

Course Fees

Hostel/Boarding Fees including caution deposit/building fund etc.

Books, Stationery & Equipment required for the course, including Computers.

Examination/Library/Laboratory fees.

Travel Expenses/Passage for studies abroad.

Security

Upto Rs.4.00 lacs – No security

Above Rs.4.00 lacs – Collateral securities by way of suitable 3^rd party guarantee or tangible security equivalent to loan amount.

Margin

Upto Rs. 4 Lac - Nil

Above Rs. 4 Lac Studies in India - 5%

Studies Abroad - 15%

Service Charge : There is no processing fee /no service charge

Interest Rates-

Click here to view the rate of Interest

Repayment

The loan will be repaid in 5-7 years after commencement of repayment. There will be moratorium for repayment during "the course period +1 year or 6 months after getting job, which ever is earlier".

1% interest concession may be provided, if the interest is serviced during moratorium period.

UCO CASH

This is a Personal Loan scheme to meet the domestic needs like marriage, medical, traveling and other social obligations.

Eligibility

Permanent Employees or those who have completed 3 years of service. Minimum take-home pay should be 40% of gross salary after all deductions including EMI against this loan. Regular income may also be reckoned for eligible quantum.

Quantum of loan

90% of the proposed expenditure or Rs. 2 Lacs whichever is lower. Additional amount may be sanctioned within the quantum ceiling to the existing eligible borrowers.

Security

Loan will be on clean basis with two guarantors – Spouse and other than Spouse having equal income with that of the applicant.

  Click here for Interest Rates

Repayment

The loan amount with interest is repayable in 48 EMIs through salary deduction of employee borrower. But one year before retirement.

Service Charge : 1% (minimum Rs.500/-)

For more details, please contact your nearest UCO Bank branch.

UCO RENT

This is a loan against the security of future receivables i.e. assignment of future rent receivable, for productive purposes e.g. augmenting earnings like investing in securities, undertaking repairs & renovation of the property, etc.

Eligibility

Owners i.e. lessors of houses/flats/godowns/warehouses etc. only are eligible under the scheme. The owner may be an individual, a firm or a company. Properties belonging to cooperative societies are not considered for sanction of loan under the scheme.

Quantum of loan

Maximum 80% of the total rent receivable during the unexpired period of lease less tax deduction at source.
Minimum Rs. 1 Lac

      Click here for Interest Rates

Repayment

The repayment period can be extended upto a maximum period of 84 months.

Processing fee

1. Fresh Sanctions : 1% of the sanctioned loan amount.
2. Review on run down Balance: Rs.225.00 per lac, Min.Rs.250.00, Max. Rs.56000.00

For more details please contact your nearest UCO Bank branch.

UCO MORTGAGE

Under the scheme credit facilities are considered upto 60% value of the property located in metro/urban/semi-urban centers to meet financial needs of government employees, employees of schools, colleges, PSU, reputed corporate business enterprises, professionals and businessmen with regular source of income and filing IT return against mortgage of their immovable property with clear Title.

Eligibility

• Maximum age limit of the borrower should be 65 years on the date of application.
• Loans can be sanctioned in the form of term loan or overdraft.

Quantum of loan

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Repayment

Salient Features

• While determining repayment capacity, income of spouse can also be taken. In that case loan should be in joint names.

• The condition of maintaining 40% of net take home is applicable to both Salaried and non-salaried person. In case of non-salaried person, their annual Gross Income, as per IT Returns, is to be divided by 12 to arrive at Monthly Gross Income. Like Salaried persons, their NET monthly income after all deductions including monthly installment of proposed Term Loan and/or monthly interest on Overdraft and proportionate principal amount to the extent of 15% of the O.D. limit/balance should not be less than 40% of their Gross monthly income.

• If credit facility is granted against building/flat/apartment, the same should not be more than 30 years old.

For more details, please contact your nearest UCO Bank branch.

UCO SECURITIES

Under the scheme credit facilities are extended to borrowers against financial securities issued by Central Govt./State Govt./RBI in the form of National Savings Certificates, Kisan Vikas Patra, Govt. Securities and Relief Bonds. Loans are also sanctioned against Life Insurance Policies of Life Insurance Corporation of India and bonds/debentures issued by specific Public Financial Institutions.

Eligibility

• The securities should be in the name of the borrower or any one of the joint borrowers.
• The securities should be transferable and can be assigned/pledged in favour of the Bank.

Quantum of loan

It will be determined on the basis of discounted face value/maturity value/surrender value of the transferable security at 13.50% (BPLR -1.00%).

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  UCO REAL ESTATE

Under the scheme advances are extended to the Promoters/Developers of real estate who should be well established and experienced in their line of activities at least for a period of three years. Cooperative Societies are not eligible to be borrowers under the Scheme.

Eligibility

Only builders of repute, integrity and excellent track record and professionally managed are eligible for such finance. They must have at least 3 years experience in the line and must have successfully completed 2-3 projects. The financial position of the builders/developers as per last audited balance sheet must be satisfactory. Financing would be subject to commercial viability and sufficient cash generation to repay the loan.

Pre-requisites

a. Details of the project cost and means of finance

b. Profitability statement

c. Annual Cash Budget for the duration of the loan showing monthly/quarterly cash inflows of the specific project along with repayment schedule

d. Audited financial statements for the last 3 years, the current year's estimate and projections for next 3 years or till the completion of the project

e. Original Title Deed of the land, detailed estimate of the proposed construction from a Chartered Engineer/Architect and permission from the competent authority of the property in case it is falling under Urban Land Ceiling Act

f. Documents like non-encumbrance certificate, certified copy of R.S. Parcha, current, renew/Municipal receipts, Lawyer's opinion on ownership and marketable title and sanctioned plan.

g. The Bank should enter in to a legally vetted tripartite agreement with promoter and buyer that should ensure among other covenants adherence to National Building Code (NBC).

  Quantum of Loan

The quantum of advance will be assessed on the basis of peak level deficit projected in the Cash Flow Statement in the Budget, as submitted by the borrower applicant.

Security:

(a) Primary: The land and building to be constructed on the land shall form the primary security. The value of primary security should be adequate to cover the Bank finance.

(b) Collateral: Collateral in the form of equitable/registered mortgage of other land and building of adequate value of promoter/ guarantor may be taken.

Margin- 25% (minimum)

Insurance-Building to be comprehensively insured against fire, riot and other damages with Bank's clause.

  Click here for Interest Rates

  Processing & Up-Front Fees

1. Processing fees
   
   1. Fresh Sanctions : 0.80% on the amount of loan applied for along with the application. 1.20% processing fee of
       the sanctioned loan amount.
   2. Review of TL on run down Balance : Rs.125.00 per lac, Min. Rs.250.00, Max. Rs.56000.00
   3. Renewal of CC/WC : Rs.395.00 per lac or part thereof Min.Rs.700.00

2. Upfront fee will be 1% of loan amount sanctioned

  Delivery of Credit

The credit /quasi credit requirement of the Construction company by way of cash credit/overdraft/short term loans linked to each specific project for a maximum period covering the period of construction plus 12 months will be considered on merit. Bid bond, Bank Guarantee for raising mobilization of advance, performance guarantee and guarantee for release of retention money etc. will also be considered on merit. Disbursement will be in phases depending upon the progress of work as certified by Chartered Engineer/Architects.

  Repayment

Repayment is to be made in one or two installments after completion of the project and sale of the flats. Sales realizations in one Project should not be diverted to another Project.

For more details, please contact your nearest UCO Bank branch.

  UCO NARI SHAKTI

This Scheme is aimed at providing financial assistance to salaried women, in line with the broad objective of the Government towards women's empowerment.

Salient features

Eligibility

Applicant should be either a permanent employee or have completed 3 years of service. Minimum take-home pay should be 40% of gross salary after all deductions including EMI against this loan. Regular income other than Salary Income may also be reckoned for considering the eligible amount.

Quantum of loan

90% of the proposed expenditure or Rs. 2 Lac whichever is lower. Additional loan amount may be allowed within the quantum ceiling to the existing borrower for the purpose the earlier loan was sanctioned.

Security:

Loan will be on clean basis with two guarantors including that of Spouse/Nominee of PF/Gratuity. One guarantor other than spouse may be waived if additional liquid security is provided up to 40% of the loan amount.

Click here to view rate of Interest :

Repayment

The loan amount with interest is repayable in 60 EMIs but one year before retirement

Service Charge - 1% (Min. Rs.500/-)

For more details, please contact your nearest UCO Bank branch.

UCO SHOPPER

It is a Consumer Loan scheme for Salaried Persons, Professionals and Businessmen for purchase of a whole range of consumer durables and two-wheelers. Consumer durables like TV, Computer, Refrigerator, Air-conditioner or any other item acceptable to the Bank, and Two-wheelers can be purchased through this scheme.

Eligibility

Salaried Persons

Persons permanently employed in Govt./Semi-Govt. or reputed private concerns with remaining period of service of more than 5 years with annual take-home pay not less than Rs. 36,000/-. Income of spouse can also be reckoned to arrive at the stipulated take-home pay.

Professionals & Businessmen

The earnings of the applicant should not be less than Rs. 1 lac per annum as per Income Tax Returns/Certificate. LIC policy is to be assigned in favour of the bank for an amount equal/or more than the loan amount in case of non-salaried person.

Quantum of loan

• Maximum : Rs. 1,00,000/-
• Minimum : Rs. 10,000/-
• (Subject to maximum 10 times of monthly take-home pay in case of salaried persons).

Margin

In case of two wheelers minimum margin is 10% and for consumer durables the minimum margin is 15%.

Click here to view rate of Interest :

Service Charge

2% service charge subject to a maximum of Rs. 500.00 will be taken at the time of sanction.

Guarantee

Personal guarantee of a person acceptable to the Bank is required.

Repayment

The Loan is repayable together with interest within a maximum period of 60 months in equated monthly installments either through salary deduction or through post-dated cheques. No charge is levied for pre-payment.

UCO PENSIONER

Short Term loan is extended through this scheme to Pensioners who receive pension through our Branches. War widows drawing family Pension are also eligible.

Purpose

• For meeting medical expenses for self and dependants.
• Payment of mediclaim premium.
• Meeting marriage expenses.
• Educational and traveling expenses.
• Repairs/renovation of dwelling house.
• Funeral expenses.

Quantum of loan

Depends upon the monthly pension: 10 times of monthly pension or Rs. 1 lac whichever is lower.

There is no processing charge or service charge.

Rate of Interest

Repayment

Repayable within 12 to 24 months. It can be extended to 36 months in genuine cases but not beyond the period of 70 years age inclusive of repayment period. No pre-payment charge is levied.

 For more details please contact your nearest UCO Bank branch

UCO EARNEST MONEY DEPOSIT LOAN SCHEME

Loan scheme for financing for Earnest Money Deposit for booking housing plots/flats offered by various Urban/Metropolitan Development Authorities & Housing Boards.

Eligibility

Indian residents having regular documented source of income. Minimum 21 years of age Singly/Jointly as permitted by State Housing Boards/Urban Development Authority/Metropolitan Development Authority. The facility is to be allowed to only those applicants who fulfill all the eligibility criteria under UCO Shelter Scheme.

Amount of Loan

Maximum not to exceed 80% of the EMD.

Processing Charge

Rs. 300.00 upfront per application

Margin - 20%

Interest Rates - 9.00% (Fixed)

Prerequisites-

• Letter of undertaking to be obtained from SHB/UDA/MDA of having noted Bank's lien and refund the amount through UCO Bank in case of unsuccessful applicants
• In case of allotment of plot, housing loan under UCO Shelter can be availed by the applicants. In such case the loan for EMD shall be adjusted against the loan granted for purchase of land and construction of house thereon.

Repayment- 24 monthly installments

UCO SWABHIMAN - REVERSE MORTGAGE LOAN MORTGAGE LOAN SCHEME FOR SENIOR CITIZEN

Bank introduces UCO Reverse Mortgage Loan Scheme for Senior Citizens, under Reverse Mortgage a Senior Citizen, owning a house/flat, can avail of a monthly stream of Income against the mortgage of his/her property while remaining the owner and occupying the house throughout his/her lifetime, without repayment or servicing of the loan.

Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)

'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.

Equated Monthly Installments (EMI )

Loan will be repaid as per following EMI Chart

Particulars	Table-1		Table-2
Loan Amount	Rs.1,00,000=00		Rs.1,60,000=00
Rate of Interest	@8.50% ( Fixed )		@8.50% (Fixed )
Terms of Repayment	180 months	240 months	180 months	240 months
Subsidy per borrower	Rs. 45,443=00	Rs.63,693=00	Rs. 45,443=00	Rs.63,693=00
NPV of Subsidy	Rs.29,112=00	Rs.35,458=00	Rs.29,112=00	Rs.35,458=00
EMI	Rs. 698=00	Rs. 560=00	Rs.1,289=00	Rs.1,081=00

Security:

a) Primary- Mortgage of the dwelling house

b) Collateral/Third Party Guarantee: NIL

Documents:

Loan Application form duly vetted by urban local bodies along with the following;

• Income certificate issued from the ULB

• Copy of the land Records

• Copy of updated payment receipt of Government revenues

• Non-encumbrance Search Certificate.

Process Note

A declaration from the borrower having been understood the impact of Fixed/Floating Rate of Interest.

Supervision:

It should be ensured that the housing unit is completed within one year period from the start of construction. On a half yearly basis a certificate of utilization of subsidy and also a certificate in relation to the progress of the construction leading up to the completion of the housing unit have to be submitted. Branch will have to submit a certificate on completion of the housing unit.

Processing Charges:

There will be no processing charges for any loan sanctioned under the scheme.

Classification:

All loans sanctioned under the scheme will be classified as Priority Sector Advance under Sub category – Housing