Head Office, House Building Loan Department,

Kanak Bldg., 41, Jawahar Lal Nehru Road, Kolkata 700 071.
Tel : 2288 8143 Fax : 2288 7008
HO HBL Dept.
13/05/2014

Note to the Deputy General Manager

Re: Queries from ROs regarding Second Property

After the coming into effect of the HBL Circular dtd. 14/9/12, we are receiving many queries
from different ROs which are to this effect.

1. Whether an employee can be granted housing loan for the Second Property at all
especially in view of the earlier provision set out in clause 5(a) of Housing Loan Scheme
of not granting Housing Loan if he or his dependent family members already own a
house at the same centre.
2. Whether the employee can be granted Second Loan for Second Property where he has
foreclosed the earlier loan and retained the property.
3. Whether Housing loan can be granted where the employee has foreclosed the loan after
selling the property but a period of more than 6 months has elapased.
4. Whether loan can be granted where the employee or his dependent family members
already own a property at the same centre where the proposed property to be bought is
situated.
5. Whether Housing loan can be granted where the employee had sold off his earlier
property acquired by availing Housing Loan from NIC which has since been closed and
he owns in the same centre (where the proposed property to be bought is situated )
a property inherited from his father.


In this context, to place the things in right perspective, we would like to reproduce below the
Clause 5 (a) of Housing Loan Scheme as well as the point no. 2 of the HO HBL circular dtd.
14/09/2012 which are relevant to the matter under discussion.

Clause 5 (a) of the Housing Loan Scheme
No loan shall be granted to an employee if he/she has accommodation whether a
house/flat/apartment at the centre where the house/flat/apartment proposed to be
constructed/purchased and if the same is owned by him or dependent family members.


..2


Head Office, House Building Loan Department,
Kanak Bldg., 41, Jawahar Lal Nehru Road, Kolkata 700 071.
Tel : 2288 8143 Fax : 2288 7008

-2-

Point no. 2 of HO HBL circular dtd. 14/09/2012
Another Loan to Employees who have closed the loan availed earlier to purchase/
construct another property -
Another House Building Loan can be granted to the extent of difference between the
revised limits and the original loan availed.

According to the Clause 5 (a) of the Housing Loan Scheme loan cannot be granted to an
employee if he has accommodation whether a house/flat/apartment at the centre where the
house/flat/apartment proposed to be constructed/purchased and if the same is owned by him or
dependent family members.

However point no. 2 of HO HBL circular dtd. 14/09/2012 unequivocally says that another House
Building Loan can be granted to the extent of difference between the revised limits and the
original loan availed.


Since the above said HO HBL circular pertains to a later date and bestows a benefit on the
employees and in view of the beneficial nature of the scheme the said point no. 2 of the HBL
circular will prevail over the provisions of the Housing Loan scheme laid down in clause 5 (a
).The circular dtd. 14/09/2012 is neither encumbered nor circumscribed by any express
limitations of the kind envisaged in clause 5 (a ) Housing Loan Scheme and therefore it will not
in the fitness of things to defeat its purpose by importing limitations set out in an provision (
Clause 5 (a) of HL Scheme ) which predates the circular by a long time.

It must be kept in mind that the provision in clause 5(a) was designed during a period of scarcity
and decidedly low standard of living. Moreover, the fund available with company for Housing
loan was meager and as a consequence Housing Loans were rationed. There has been drastic
changes in the mean time and now the company is flush with funds and aspiration and needs of
employees have also increased manifold.

Therefore, as the circular clearly states, an employee will be eligible for another HB Loan
for another property provided he has closed the earlier HB Loan availed by him and the
maximum quantum of loan for the second property will be the difference between the
revised limits and the original loan availed.


As a direct and necessary corollary of the abovesaid circular, as the things stand now, an
employee will be eligible for Housing Loans for two properties at the maximum.

Suggestion has come from some quarters that since the circular speaks of repayment of earlier
loan as a precondition to grant of another loan for another property, loan cannot be granted for
purchase/ construction of a property in case the employee or any dependent member already
owns a property without availing our companys loan.

Needless to mention that such pedantic and narrow interpretation will result in uncalled for
discrimination against some of our employees and wrongfully deprive them of an benefit they
otherwise deserve.

Hence, to avoid any future complications, it is also clarified that in case an employee
already owns a property, whether inherited or acquired by himself without availing
housing loan of NIC, the employee will be eligible for a house building loan for one
property.

The Note is being placed for your kind perusal and suitable advices in the matter.



( B. B. DAS ) (N. C. CHOUHAN)
A. O. A. O.



Chief Manager :