H Loan

DEPARTMENT: RETAIL CREDIT
Circular No. HO:Retail:04:2015-16:31
Date: 08.04.2015
TO: ALL BRANCHES/ OFFICES

ORIENTAL HOME LOAN SCHEME
1. BACKGROUND__________________________________________________________
The undernoted Circulars including Master Circular have been issued on Oriental Home
Loan Scheme since 10.05.2012.
S. No. Title
Master Circular: Oriental Home Loan
1
Scheme
Financing of Group Loan Protection Plan
2
for Home Loan Borrowers
3 Issuance of In Principle Sanction Letter
4 Home loan - DLF Ltd. - Home Buyers
Home Loan - Specific Location- Noida
5
and Greater Noida
6 Modification In LTV Ratio & Margin
KYC guidelines and Due Diligence
7 exercise
to
be
completed
while
sanctioning the housing loan
8 Upfront Disbursal of Housing Loans
Modifications in Retail Credit Schemes9
Financing to HUF & Discretionary powers
Modifications in Terms of Retail Credit
10
Schemes Repayment Period
Modifications
In
Retail
Schemes11
Takeover guidelines & CIBIL default
Modifications In Retail Credit Schemes12
Net Take Home Criteria
Retail Credit- Due Diligence exercise to
13 be completed while sanctioning Housing
Loans
Housing loans under residential projects
14
financed by our bank
Oriental Home Loan Scheme- Change in
15
Net Take Home Criteria
Home Loan Master Circular
Circular No. and Date

HO:Retail:05:2012-13:77 dt: 10.05.2012
HO:Retail:08:2012-13:123 dt: 25.05.2012
HO:Retail:23:2012-13:487dt: 03.10.2012
HO:Retail:45:2012-13:822 dt: 05.03.2013
HO:Retail:12:2013-14:196 dt: 26.06.2013
HO:Retail:13:2013-14:203 dt: 26.06.2013
HO/RT/14/2013-14/331 dt: 30.06.2013
HO:Retail:19:2013-14:540 dt: 04.09.2013

HO:Retail:22:2013-14:578 dt: 17.09.2013
HO:Retail:26:2013-14:647 dt: 11.10.2013
HO:Retail:40:2013-14:994 dt: 23.01.2014
HO:Retail:44:2013-14:1126dt: 06.03.2014
HO:Retail:01:2014-15:02 dt: 01.04.2014
HO:Retail:06:2014-15:18 dt: 09.04.2014

HO:Retail:10:2014-15:127 dt: 23.05.2014
Page | 1
Oriental
Home
Loan
Scheme- HO:Retail:18:2014-15:425 dt: 27.08.2014
16 Modification in Terms (Rate of Interest
(Normal & CRE) & Construction Period)
Oriental Personal Loan Scheme for Home HO:Retail:21:2014-15:441 dt: 29.08.2014
17 Loan Borrowers
&
HO:Retail:32:2014-15:610 dt: 27.10.2014
Oriental Home Loan Scheme- Review HO:Retail:31:2014-15:589 dt: 17.10.2014
18
Format
19 Modification in Retail Credit schemes- HO:Retail:32:2014-15:610 dt: 27.10.2014
Discretionary Powers & Extn. of charge
over Home Loan property / Home
Furnishing Loan
Modification in retail credit schemes- HO:Retail:39:2014-15:764 dt: 19.12.2014
20 Components of Finance & Takeover
norms
Home Loan: Clarification on Income Tax Circular Letter No. HO: Retail:11:2014-15
21 Return - In Case of Professionals, Self- dt. 29.12.2014
Employed Persons & Businessmen
Oriental Home Loan Scheme Priority HO:Retail:41:2014-15:792 dt: 30.12.2014
22
Sector Definition
Retail
Credit
Schemes:
Operative HO:Retail:45:2014-15:924 dt. 21.02.2015
23
Account of Applicants
Housing Loan- Modification in Terms
HO:Retail:46:2014-15:952 dt: 07.03.2015
a) Inclusion of stamp duty & other
24 charges in LTV ratio
b) Construction linked disbursal of
housing loan
Modifications in Retail Credit Schemes- HO:Retail:47:2014-15:979 dt: 17.03.2015
25
inspection charges
Oriental
Home
Loan
Scheme
- HO:Retail:48:2014-15:980 dt: 17.03.2015
Modification in Terms: Assessment of
26 MPBF, Net Take home Criteria,
Construction period, Penal Interest &
discretionary powers
2. Consolidation of Scheme_______________________________________________
To obviate frequent references, the instructions advised through aforesaid Circulars
containing guidelines on Oriental Home Scheme have been consolidated. This Circular
will supersede all the previous circulars. Following schemes are annexed herewith:
Scheme
Oriental Home Loan Scheme
Oriental Home Furnishing Scheme
Oriental Personal Loan Scheme for Home Loan Borrowers
List of Documents
Annexure
FAQs
Page No.
12-47
48-50
50-52
53-63
64-134
135-136
Page | 2
______________________________________________________________________
3.ACTION TO BE TAKEN AT FIELD LEVEL AND CONTROLLING OFFICES_______
3.1
All the field functionaries are advised to ensure meticulous compliance of the
above guidelines.
3.2
The contents of this circular be got noted from all the staff members at the
Branches / Regional Offices.
3.3
All inspecting officials from the Inspection & Control Deptt. at Head Office as well
as the Regional Inspectorates should verify the compliance of the above during
their visits to Branches / Regional Offices.
(B N Jha)
General Manager
(Retail, Marketing & Services)
Page | 3
Modifications in the scheme after 10.05.12 (Details are given in the updated scheme)
S.No. Particulars
1.
Tie-up with
Builders
(HO:Retail:12:20
13-14:196 dt:
26.06.13)
Existing Norms
Project Approval: No precondition of having Tie-up
arrangement with Builders
for sanctioning Home loan.
&
(HO:Retail:39:20
14-15:764 dt:
19.12.14)
Modifications
Apart from residential projects
located at Noida & Greater
Noida locations, no Tie-up
arrangement with Builders is
required
for
Home
loan
sanction. In case of Noida &
Greater
Noida
locations,
following guidelines are to be
complied:
a) If the project in Noida /
Greater Noida is already
financed by the Bank, then
the housing loan may be
considered for sanction for
residential property in the
project by the delegated
authority.
b) If the project in Noida /
Greater Noida
is not
financed by the Bank, then
the project shall be first
approved by the HLCC-ED
at Head Office. Only
thereafter the housing loan
may be considered for
sanction
for
residential
property in the project by
the delegated authority.
Approving Authority: For

Bulk marketing of Home
loan, Tie-up with builders is
a marketing strategy (not a
pre-condition). The RLCCRH
is
authorized
for
approving
tie-up
arrangements
with
the
Builders/ Developers for
extending Home Loans to
the prospective buyers /
borrowers, except in case of
Noida / Greater Noida
locations.
Except Noida / Greater Noida

location,
wherein
existing
guidelines remain unchanged, in
other cases, Regional Head
shall explore all possibilities to
tie-up with all reputed builders in
his regions.
To speedup the process, all
those projects, which have been
approved by any two of the
Banks/
institutions
namely
HDFC Bank / HDFC Ltd., SBI,
LICHF, ICICI, Punjab National
Bank / PNB Housing Finance
Ltd. based on their stand alone
sanction letters, be approved.
Page | 4
S.No. Particulars
Existing Norms
Modifications
The approval be accorded
subject
to
compliance
of
following conditions that:
a) Above
banks
approval
should not be older than six
months from the date of
consideration
of
our
approval;
b) The visit to the project site
has been undertaken by the
Bank officials and visit report
is held on record; It should
be ensured that no adverse
feature is observed during
the visit.
2.
3.
Margin
(HO:Retail:13:20
13-14:203 dt:
26.06.13)
Loan Limit
Loans Upto ` 20.00
Lacs
Loans
Above
`
20.00 Lacs
Financing to
HUF
Home
Loan
to
HUF
concerns
may
be
considered on selective
basis, provided the income
of HUF only is reckoned for
the purpose of arriving at
eligible loan amount.
In
individual case, income of
HUF shall not be added to
arrive at eligible loan
amount.
Overall upto 25 years
(HO:Retail:22:20
13-14:578 dt:
17.09.13)
4.
Loan Tenure
(HO:Retail:26:20
13-14:647 dt:
11.10.13)
5.
Repayment Age
(HO:Retail:26:20
13-14:647 dt:
11.10.13)
Margin
15%
25%
Loan Limit
Loans Upto ` 20.00 Lacs
Loans Above ` 20.00
Lacs & Upto ` 75.00
Lacs
Above ` 75.00 Lacs
Margin
15%
20%
25%
No Housing / any other Retail

Loan be considered to HUF
entities or to Partnership firms
where HUF is a partner.
* Refer circular no. HO/RMD/38
/
2013-14/
494
dated:
23.08.2013.
Overall up to 30 years subject

to the age of dwelling unit
Age of the Repayment
dwelling unit
period
Less than 10 yrs Maximum 30
Yrs
Older than 10
Maximum 25
yrs
yrs
i. For Salaried (With Pension)
& other Individuals upto 70
years
i. Maximum
repayment
age is 60 years or upto
superannuation
whichever is earlier and
upto 65 years if younger ii. For
Salaried
(Non
co-borrower is available.
Pensionable) upto 60 years
or superannuation.
ii. For Pensioners upto 65
years
Page | 5
S.No. Particulars
6.
Takeover Norms
a) Sanctioning
Authority for
Takeover Cases
under Home
Loan
Existing Norms
Authority
Branch
incumbent
Disc.
Powers
NIL
(HO:Retail:40:20
13-14:994 dt:
23.01.14)
&
(HO:Retail:39:20
14-15:764 dt:
19.12.14)
For cases falling RLCCunder the powers RH
of Branch &
Regional Office
For cases of
Head Office
power
b)
Deviation CAC
Authority
(HO:Retail:40:20
13-14:994 dt:
23.01.14)
HLCCED
Modifications
Authority
Branch
incumbent
Disc. Powers
The
branch
incumbent
is
empowered for
takeover of home
Loan
where
working
capital
limit is availed by
borrowers from
our
bank
&
housing
loan
from other banks.
Subject
to
compliance
of
takeover
guidelines
and
condition
that
working
capital
limit must be
standard for last
3 years.
For cases falling RLCC-RH

under the powers
of Branch (other
than above) &
Regional Office
For cases of HLCC-ED
Head
Office
power
HLCC-ED
RLCC-RH is empowered for
permitting following deviations
in takeover of Home Loan
Cases.
1. Takeover of home loan under
Implementation
Stage
(construction based houses /
flats) and additional Loan for
the same house.
2. Takeover of home loan

sanctioned for purchase of
plot (subject to condition that
the loan is sanctioned under
home loan scheme in other
Bank) and additional Loan for
construction of house, on
account of increase in the
cost of project due to cost
escalation of construction/
Builder and any additional
construction, thereon.
Page | 6
S.No. Particulars
7.
8.
9.
Existing Norms
c) Relaxation of a) The conduct of the

Norms
account with the existing
FI / Bank had been
(HO:Retail:39:20
strictly
regular
and
14-15:764
dt:
borrower
had
not
19.12.14)
defaulted/delayed
in
payment
of
any
installment.
b) There should not be any
rephasement
/
reschedulement in the
loan account.
Default in CIBIL The
Credit
Approval
reports
other Committee (CAC) shall be
than Credit card the sole competent authority
account
to allow any exception /
relaxation in case of Fresh
(HO:Retail:40:20 Borrowers
or
their
13-14:994
dt: associates who adjusted
23.01.14)
their accounts with other
Banks or the accounts are in
written off/settled status.
Ceiling on age Co-borrower with maximum
of
the
Co- age of 70 years is
Borrower
permissible
(HO:Retail:44:20
13-14:1126
dt:
06.03.14)
Rate of
Rate of interest Loan Limit
Interest
(Upto 2 houses)
(HO:Retail:18:20
14-15:425
dt:
27.08.14)
Up to ` 75 Lacs
Above ` 75 Lacs
- ` 3.00 Crore
Above ` 3.00
Crore
BR=10.25%
BR+0.50%=
10.75%
Rate of
interest shall
be decided by
the Authority
at H.O.
Modifications
3. Sanction of additional Loan
(at the time of takeover or
after the takeover) by way of
OBLS, OMLS, Education
Loan etc. by extension of
charge on the same property.
However, it shall be ensured
that all other terms of the
respective retail schemes viz.
Margin, LTV etc. shall be
complied with.
a) The account to be taken
over should be classified as
Standard Regular by the
previous banks / FIs and a
certificate to this effect be
taken from the existing bank.
b) There should not be any

rephasement
/
reschedulement
in
the
account in the last 3 yrs.
HLCC-ED shall be the sole
competent authority to allow any
exception / relaxation in case of
Retail
Borrowers,
Coborrowers & Guarantors who
adjusted their accounts with
other Banks or the accounts are
in written off/settled status.
In case the owner of property is

being made as co-borrower,
only because property is
standing in his/ her name, there
shall be no ceiling on age of
such owner/co-borrower.
Loan Limit
Rate of
Interest
Irrespective
of Base Rate
loan limit
Page | 7
S.No. Particulars
10.
Home
Loan
(CRE)
(HO:Retail:18:20
14-15:425
dt:
27.08.14
&
(HO:Retail:39:20
14-15:764
dt:
19.12.14)
11.
Property
mortgaged
in
Home loan to be
kept as security
in other loans
(HO:Retail:32:20
14-15:610
dt:
27.10.14)
Existing Norms
BR+3.50%
Modifications
Base Rate + 0.50%
The
respective
sanctioning
authorities as per the powers
delegated under Oriental Home
Loan Scheme can consider
Home Loan proposal under
CRE.
Housing loan account shall

remain 143% backed by
value of acquisition cost
of the house / flat and
residual value will be
available
for
collateral
security in other loan
accounts.
Value to Loan Ratio (VTL) should

be kept at 150% minimum (or
Loan to Value Ratio be kept at
66.67% minimum) of present
outstanding of home loan and
residual
present
realizable
value (as per latest valuation of
property) will be available for
collateral security in other loan
accounts.
Note:
a) If the property is to be
mortgaged in OBLS /OMLS,
RLCC-RH shall be the
sanctioning authority.
b) Latest
Valuation:
The
guidelines
regarding
frequency of valuation of
property be guided by RMD
Deptt.
12.
a) Discretionary
power for HL
(HO:Retail:48:201
4-15:980 dt:
17.03.15)
b) Discretionary
powers of home
furnishing loan
(HO:Retail:32:20
14-15:610 dt:
27.10.14)
HLCCBranch IncumbentHLCCBranch IncumbentRLCC-RH

RLCC-RH
ED
(Scale)
ED
(Scale)
FULL
GM
DGM
AGM
VI
V
IV III II I
FULL
GM
AGM VII VI V IV III II I
DGM
500 300 150 300 150 100 50 20 10
300 150 100 300150100 50 40 20 10
For Regional Office:

RLCC-RH
` 15.00 Lacs
For Branch Incumbents
Location /City Loan Limit
Category
Metro
` 15.00 Lacs
Urban
` 10.00 Lacs
Semi Urban
` 8.00 Lacs
Rural
` 5.00 Lacs
Discretionary powers for home

furnishing loan shall be over &
above the discretionary powers
vested
with
the
Branch
Incumbent/ Regional Head for
Housing loan and shall be linked
to the scale of Branch
Incumbent as under:
(` in Lacs)
HLC
C-ED
Full
RLCC
-RH
15
III- VII
II
Page | 8
S.No. Particulars
13.
14.
Modifications
However, this loan facility shall
be restricted upto 75% of the
total cost of renovation /
furnishing OR upto 30% of
present realizable value of
House / Flat, whichever is
less, subject to a maximum
amount of ` 15.00 Lacs.
price
of Apart
from
all
existing
Components of a) Purchase
plot/house.
components of finance, a new
finance
b) Construction cost of the component has been included
house.
which is as under:
(HO:Retail:39:20
c) Financing of conversion
14-15:764
dt:
charges
payable
to Purchase price & installation
19.12.14
Government Authority charges of Rooftop Solar PVs
Non-Solar
Lighting,
&
only for conversion of and
wiring
and
other
such
fittings.
the house/flat / plot from
HO:Retail:
leasehold to freehold.
46:2014-15:952
d) For furnishing, repair, It is relevant that existing home
dt: 07.03.15)
renovation & additional loan may also be covered for
financing this component as
construction.
e) Premium
of
Group home improvement loan subject
Secure Scheme (GSS)- to compliance of other terms
Canara-HSBC with OBC and conditions of the home loan
life insurance company scheme.
(JV),
if
opted
by As per RBI guidelines, In
borrower.
cases where the cost of the
house/dwelling unit does not
exceed ` 10.00 Lacs, stamp
duty, registration and other
documentation charges may
be added to the cost of the
house/dwelling unit for the
purpose of calculating LTV
ratio.
Priority Sector
Housing loan to individuals Following housing loans shall be
(HO:Retail:41:20 etc. upto ` 25.00 Lacs shall eligible under Priority Sector
to
classification
be classified under Priority subject
14-15:792 dt:
Sector
subject
to guidelines/ directives issued by
30.12.14)
classification
guidelines/ RBI from time to time.
directives issued by RBI a) Housing
Loans
to
from time to time.
individuals etc. up to ` 25
Lacs in metropolitan centres
with population above ten
Lacs and ` 15 Lacs in other
centres
b) Loans for repairs to the
damaged dwelling units of
Existing Norms
Page | 9
S.No. Particulars
15.
16.
17.
Existing Norms
Modifications
families up to ` 2 Lacs in
rural and semi- urban areas
and up to ` 5 Lacs in urban
and metropolitan areas.
Note: The classification of
advance under Priority sector
will depend on location of the
property and not on the location
of the branch.
In case of incomplete/underconstruction /green field housing
projects of private buildersDisbursal of housing loans
sanctioned to individuals should
be closely linked to the stages
of construction of the housing
project / houses and upfront
disbursal should not be made.
Cash Down
Payment To
Builder/Govt.
Authority
Branches can make cashdown payment in case of

those buyers who plan to
purchase flats from reputed
builders in order to facilitate
to
take
(HO:Retail:19:201 borrowers
advantage
of
the
huge
cash
3-14:540 dt:
discount being offered by
04.09.13
builders
&
In cases of projects sponsored
HO:Retail:
by Government / Statutory
46:2014-15:952 dt:
Authorities, loans may be
07.03.15)
disbursed 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.
Upto 24 months.
The sanctioning authority shall
Construction
be empowered for permitting
Period for Govt. /
The
RLCC-GM
shall
be
maximum
permissible
Builder Flats
empowered
to
extend construction period as per the
construction
period
upto
36 builder construction plan /
(HO:Retail:48:201
months
on
merit
of
the
schedule or 48 months from the
4-15:980 dt:
case.
date of first disbursement,
17.03.15)
whichever is earlier.
Upto 24 months.
1. In case of already owned
Construction
plot /purchase of plot &
Period for other
construction thereon, the
than builder flats The RLCC-GM shall be
empowered
to
extend
permissible
construction
(self
construction period upto 36
period shall be 24 months
construction)
months on merit of the
from the date of first
(HO:Retail:48:201
4-15:980 dt:
case.
disbursement.
2. In case of plot/ land being
allotted by Govt. authorities
Page | 10
S.No. Particulars
17.03.15)
18.
19.
20.
Existing Norms
Commercial Rate In case construction of the

house is not completed as
of Interest
per sanction terms from the
(HO:Retail:48:201 date of possession of the
4-15:980
dt: plot/land or the plot/land is
alienated, commercial rate of
17.03.15)
interest shall be charged
from
the
date
of
disbursement of the loan and
loan shall be recalled as per
the normal procedure of the
bank (subject to compliance
of guidelines mentioned in
construction clause).
Assessment of A) Gross Income Criteria
MPBF
B) Margin Criteria
(HO:Retail:48:20 C) Net Take Home Criteria
14-15:980
dt:
17.03.15)
Criteria
for The
individuals
jointly
arriving at Net availing the Home loan are
take Home %age separately assessed based
for deduction
on the income criteria
tabulated as under:
(HO:Retail:44:20
Gross
Net Maximum
Take extent of
13-14:1126
dt: Annual
Income
Home relaxation
06.03.14)
Upto ` 5 lacs
Above ` 5
Lacs to ` 10
Lacs
Above ` 10
Lacs to ` 15
lacs
Above ` 15
Lacs to ` 25
lacs
Above ` 25
lacs
50%
40%
30%
25%
20%
Modifications
e.g. HUDA, PUDA, GDA,
GAMADA
etc.,
the
permissible
construction
period shall be 24 months
from the date of possession
or period allowed by govt.
authority,
whichever
is
earlier.
The RLCC-RH shall not have
any power to further extend
construction period.
In case construction of the house
is not completed as per sanction
terms
from
the
date
of
possession of the plot/land or the
plot/land is alienated, commercial
rate of interest @ Base Rate+3%
shall be charged from the date of
disbursement of the loan and
loan shall be recalled as per the
normal procedure of the bank
(subject
to
compliance
of
guidelines
mentioned
in
construction clause).
The criteria for assessing MPBF
by Gross Income is removed.
MPBF be assessed on the basis
of Margin & Net Take Home
Criteria only, whichever is less.
Gross
Annual
Income
Net
Take
Home
Maximum
extent of
relaxation by
RLCC-RH
50%
Upto ` 5
5%
lacs
40%
Above ` 5
5%
Lacs to ` 10
by RLCC- Lacs
30%
Above ` 10
5%
RH
Lacs
5%
After relaxation by RLCC-RH,
the net take home income shall
5%
be minimum 45%, 35% & 25%
respectively for above three
5%
slabs of Gross Annual Income.
In case of joint borrowers, the
Gross Annual Income of the
No
change
individuals can be clubbed to
arrive at the slab for Net take
No
home criteria.
Change
Page | 11
THE SCHEME
NOMENCLATURE
Housing Finance Scheme shall be called ORIENTAL HOME LOAN SCHEME for
all practical purposes including advertisement.
SCHEME OBJECTIVE- GOVERNMENT/RBI/BANK
The Government of India vide various National Policy Pronouncements have reinforced
the primacy of the Housing sector and emphasized the need to provide shelter
opportunities to all.
In pursuance of National Housing Policy of Central Government, RBI has been
facilitating the flow of credit to housing sector. During recent years the housing has
emerged as one of the sectors attracting a large quantum of Bank finance. Therefore,
the current focus of RBI regulation is to ensure orderly growth of housing loan portfolio
of the Banks with minimum risk.
PURPOSE
The Bank offers financial assistance for/to:
1.
2.
3.
4.
5.
6.
7.
8.
Purchase of land and construction of a house thereon.

Construction of house, where in the plot/land already owned by the applicant.
To buy built up (new / second hand) / semi built up house or flat.
To extend/improve/repair, the existing house or flat.
To buy a flat under construction or proposed to be constructed
For Home furnishing, furniture / fixtures embedded to structure or otherwise.
To take over of housing loan from other Banks/ financial institutes.
Installation of Rooftop Solar PVs and Non-Solar Lighting, wiring and other
such fittings.
A) Home Loan for construction of house (other than Rural areas)

Home Loan for construction of house shall be allowed only after ensuring bonafide
land/plot holding by the applicant and obtention of sanctioned plan by the competent
authority. The borrower shall construct the house upto a maximum period of 24 months
strictly as per sanctioned plan (subject to compliance of guidelines mentioned in
construction period clause) and shall submit the completion certificate of house within 3
months of completion of construction. A registered architect preferably from Banks
panel must also certify at various stages of construction of building/home, that the
construction of the building/home is strictly as per approved plan.
B) Specific provision of loan for House construction in rural area.
Generally, in rural /village areas, there is no authority for approving the building
plan/map and the documents of title of the land/house are also not available, in such
cases the prospective borrower should be asked to get the construction map prepared
Page | 12
by architect confirming compliance of Government rulings. Permission from the village

panchayat for the construction as per building plan/map shall be obtained along with
their certification that there is no map approving authority existing for approving such
map for the particular rural areas and the said plot on which construction will be made is
located in notified Abadi Area of the village. However, a due diligence in all such cases
be exercised by sanctioning authority.
C) Home Loan for purchase of built up house / flat
Home loan shall be allowed for purchase of flat / house after obtaining:
Certified copy of approved construction plan/map
OR
An affidavit-cum-undertaking that the house / flat has been constructed as per
sanctioned plan and /
OR
Building byelaws and as far as possible has a completion certificate. A registered
Architect appointed by the bank must also certify before disbursement of loan that the
built up property is strictly as per sanctioned plan and / or building byelaws.
No loan shall be granted for properties, which fall in the category of unauthorized
colonies unless and until they have been regularized, and development and other
charges are paid. No loan shall be given in respect of properties meant for
residential use but which the applicant intends to use for commercial purposes.
Loan to professionals like Doctors, CAs for the purpose of purchase
/construction of non-residential premises like nursing home/office unit be
delinked from housing loan facility.
ELIGIBLE PERSON(S)
Individuals or group of specified individuals (co-borrowers) having an assured source of
regular income viz. Salaried employees, Professionals, Self-employed persons,
businessmen, farmers etc. Further,
1) The staff members of the Bank are also eligible under general public home loan
scheme.
2) The NRI, PIO may also avail a housing loan in India subject to compliance of
specific terms at par with those applicable to a person resident in India.
Note: No Housing Loan be considered to HUF entities or to Partnership firms
where HUF is a partner.
(Amended vide circular no. Retail:22:2013-14:578 dated:17.09.2013).
RBI SPECIFIC GUIDELINES
The following types of Bank finance maybe included under direct housing finance:
1) Bank Finance extended to a person who is also owning a house in town/village
where he resides, for buying/ constructing a second house in the same or other
town / villages for the purpose of self occupation.
Page | 13
2) Bank finance extended 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.
However, if the applicant intends to have more than two houses, the exposure for
third unit house onward may be treated as CRE exposure and falls under the
definition of income producing real estate as the borrower may be renting these
units and the rental income would be the primary source of repayment. The
applicable interest for such units is mentioned under Rate of interest column.
Further, no loan should also be given in respect of the properties meant for
residential use, which the applicant, intends to use for commercial purposes, and
declares the same while applying for loan.
LOAN TO VALUE RATIO
As per RBI guidelines, the LTV ratio in respect of housing loans should not exceed
75%. LTV Ratio for home loan shall be as under:
S. No.
1.
2.
3.
Loan Amount
Upto ` 20.00 Lacs
Above ` 20.00 Lacs & Upto ` 75.00 Lacs
Above ` 75.00 Lacs
LTV Ratio
85%
80%
75%
(Amended vide Circular no. HO: Retail:13:2013-14:203 dated 26.06.2013).
All RBI guidelines/directives issued on home loan from time to time shall be
treated an integral part of the home loan scheme of the Bank.
KYC /CIBIL / RATING
The compliance of KYC norms, extraction of CIBIL Reports, Central Registry Search
report and rating of the account are integral part of the Home Loan Scheme for
respective borrowers. As per Loan Policy, these tools are applicable in Home Loan
A/Cs and utilized to alleviate various risks and to exercise prudent decision on the loan
proposals. It is relevant that if a customer secures Credit Rating upto financing level,
his/her application will be considered eligible for further processing.
AGE CRITERIA
Minimum age: 18 years as on date of application
Maximum age:
i.
ii.
For Salaried (With Pension) & other Individuals - upto 70 years

For Salaried (Non Pensionable) - upto 60 years or superannuation, whichever is
earlier.
(Amended vide Circular No. HO:Retail:26:2013-14:647 dated: 11.10.2013)

Page | 14
The above Maximum age limit is permissible subject to the age by which the loan
should be fully repaid, availability of sufficient, regular and continuous source of income
for servicing the loan repayment to the satisfaction of Loan sanctioning authority.
Note:
In case the owner of property is made as co-borrower only because property is standing
in his / her name, there shall be no ceiling on age of such owner / co-borrower (Income
of co-applicant in such case cannot be considered for calculation of MPBF).
FINANCING BRANCH
Normally the financing branch shall be:
a)
The branch located at the place of residence / posting of the applicant/ borrower.
OR
b) By the branch located at the place of property / nearest to the property proposed
to be purchased / constructed is situated.
However, registered / equitable mortgage shall be created at nearby Branch or
financing Branch situated in notified area.
COMPONENTS OF FINANCE
a)
b)
c)
Purchase price of plot/house.

Construction cost of the house.
Financing of conversion charges payable to Government Authority only for
conversion of the house/flat / plot from leasehold to freehold.
For furnishing, repair, renovation & additional construction (Please refer separate
para enunciating terms of finance under Home furnishing Loan)
Purchase price & installation charges of Rooftop Solar PVs and Non-Solar
Lighting, wiring and other such fittings. (Amended vide circular no. HO:Retail:39:2014-
d)
e)
15:764 dated 19.12.2014)
f)
Premium of Group Secure Scheme (GSS)-Canara-HSBC with OBC life insurance

company (JV), if opted by borrower. However the premium amount shall not be
taken into account for arriving at LTV ratio on Home loan i.e. the margin shall be
maintained excluding the insurance premium cost.
(We further clarified that Premium of GSS (life insurance cover)for covering Housing loan
beneficiary can be financed by the Bank within the overall ceiling (i.e. total financing
including GSS premium does not exceed the minimum required LTV ratio, which is as
under:
S. No.
1.
2.
3.
Loan Amount
Upto ` 20.00 Lacs
Above ` 20.00 Lacs & Upto ` 75.00 Lacs
Above ` 75.00 Lacs
LTV Ratio
85%
80%
75%
Note:
1. Purchase of plot only or in isolation is not permissible.
Page | 15
2. Stamp duty and registration expenses should not be included in the cost of
housing property to be financed. However, In cases where the cost of the
house/dwelling unit does not exceed ` 10.00 Lacs, stamp duty, registration
and other documentation charges may be added to the cost of the
house/dwelling unit for the purpose of calculating LTV ratio. (Amended vide
circular no. HO:Retail: 46:2014-15:952 dt: 07.03.2015)
3. A personal loan scheme for financing the insurance premium under GSS is
also circulated vide circular no. HO:Retail:21:2014-15:441 dt: 29.08.2014 &
further modification vide circular no. HO:Retail:32:2014-15:610 dt:27.10.14.
MARGIN
Loan Limit
Loans Upto ` 20.00 Lacs
Above ` 20.00 Lacs & up to ` 75.00 Lacs
Above ` 75.00 Lacs
Margin
15%
20%
25%
(Amended vide Circular no. HO: Retail:13:2013-14:203 dated 26.06.2013).
i)
Borrower shall contribute his margin upfront. However, the sanctioning authority
may consider acceptance of proportionate margin with the release of loan
instalments on merits of the proposals.
ii)
While taking over Home loan accounts from other financial institutions, it must be
ensured that the amount taken over fulfills the criteria of our stipulated margin
irrespective of the margin imposed / not imposed by other financing institutions.
iii)
Loan amount for purchase of residential plot shall not exceed 50% of the eligible
loan amount.
Since loan to value ratio, which is stipulated by RBI, is mandatory to comply and
determines the provision percentage under risk weight assets, as such field
functionaries meticulously comply the obtention of requisite margin.
iv)
In case the charge on house is proposed to be extended in other loan accounts

as collateral security, in such circumstances the margin will be maintained at
33.33% irrespective of loan limit. Further, Value to Loan Ratio (VTL) should be
kept at 150% minimum (or Loan to Value Ratio be kept at 66.67% minimum)
of present outstanding of home loan and residual present realizable value
(as per latest valuation of property) will be available for collateral security in
other loan accounts. (Amended vide Circular no. HO: Retail:32:2014-15:610 dated
27.10.2014)
MAXIMUM ELIGIBLE LOAN AMOUNT

There is no ceiling on the amount of loan. However, Maximum loan amount permissible
under the scheme shall be:
1)
On Margin criteria:
a) 85% of the total cost of construction / purchase price excluding stamp duty
and registration charges, for loans upto ` 20.00 Lacs.
Page | 16
b) 80% of the total cost of construction / purchase price excluding stamp duty
and registration charges, for loans above ` 20.00 Lacs & upto ` 75.00 Lacs.
c) 75% of the total cost of construction / purchase price excluding stamp duty
and registration charges, for loans above ` 75.00 Lacs.
Net Take Home Income Criteria:
2)
The salaried person & Non salaried person falling under below mentioned slab of
Gross Annual Income shall have to maintain minimum net take home income
(Gross Annual Income minus all existing deductions, income tax deduction &
deduction of proposed loan instalment)
Gross Annual Income
Upto ` 5 lacs
Above ` 5 Lacs to ` 10 Lacs
Above ` 10 Lacs
Net Take Home

50%
40%
30%
Maximum extent of
relaxation by RLCC-RH
5%
5%
5%
(Amended vide Circular no. HO: Retail:10:2014-15:127 dated 23.05.2014 & HO:Retail:48:201415:980 dt: 17.03.15)
After relaxation by RLCC-RH, the net take home income shall be minimum 45%,
35% & 25% respectively for above three slabs of Gross Annual Income.
In case of joint borrowers, the Gross Annual Income of the individuals can be
clubbed to arrive at the slab for Net take home criteria. (Amended vide Circular No.
HO:Retail:44:2013-14:1126 dated: 06.03.2014) e.g.
(` In Lacs)
S.No. Particulars
Mr. A
Mr. B
Mr. C
Mr. D
a.
Gross Annual Income
6.00
4.80
10.80
16.00
b.
Net Take Home (%age) on
40%
50%
30%
30%
individual basis
c.
Applicable Net take Home
30%
on joint basis (%age)
Note:
The maximum permissible loan amount shall be the amount out of above two
alternatives, whichever is less.
THE INCOME
1.
For salaried persons:
Gross income shall include salary and other regular income i.e., dividends,
interests, rent, etc., as declared in salary certificate, form 16 and/or income tax
returns / assessment.
Since the salaried income are having increasing trends in future, as such on
merits the latest income may be considered for computation of MPBF.
Net Income = Gross Income All deductions including instalment of proposed loan and
income tax.
Page | 17
2.
For Non salaried person : where income tax return are being filed
Gross income consists of income as declared in the income tax returns/assessments

and/or supported with financial statements and/or certificate from a qualified CA.
wherever required a copy of tax paid challan / receipt shall also be obtained to support
the income of the person.
Net Income = Gross Income All deductions including instalment of proposed loan and
income tax.
Clarification:
The MPBF be arrived at by taking into consideration average income of past 2 years.
However, it must be ensured that two IT returns not to be filed together. (Amended vide
circular letter no. HO: Retail:11:2014-15 dated: 29.12.2014)
Note: Depreciation if any, claimed in the income tax return may be considered as a part
of gross income for computation of eligible loan amount. Existing rental income as per
income tax return may be taken into consideration. However,if the applicant intends
to let out the proposed property to be purchased and requests for inclusion of
expected rental income in the gross income of the party, it can not be considered
for MPBF calculation, as the same will be treated as income producing real
estate.
3.
For Non salaried (Self-employed/Small Business/Traders) where income tax

returns are not filed:
Subject to complete satisfaction of the sanctioning authority as regard to the

earning/income vis--vis repayment capacity of the borrower in this category by
subjective/objective means available at his command. Housing Loan to this category of
borrower with a maximum limit of ` 2.00 Lacs is permitted.
In such cases, branches may accept income as declared by prospective borrower in a
duly notarized affidavit as the gross income.
4.
For Farmers/Rural Artisans:
In rural and semi-urban areas where income of the applicant cannot be ascertained on
the basis of documents, it may be worked out as follows:
A. GROSS INCOME
Income from Agriculture: The below mentioned income per annum per acre of
land may be taken as base for ascertaining the total amount of income. However,
these rates are notional which may be updated with available authenticated
income per acre of land provided by NABARD or approved rates of District Level
Consultative Committee (DLCC).
Further, the income from other horticulture/medicinal crops may be considered in
all areas, wherever such crops are grown. In case of sugarcane, income shall be
worked out on the basis of average yield per acre and minimum/special support
price (MSP/SAP) declared by the concerned State Government.
Page | 18
Further, these rates may vary from place to place. The loan sanctioning authority
should take prudent decision on the monthly income and repaying capacity of the
individual farmers.
Type of land/Crop
For irrigated land
For un-irrigated land
For Horticultural crops Grapes
Litchi
Coconut
Citrus
Tea
For Medicinal crops - Mulethi
Mentha
Income per acre per annum

` 20000/- to ` 25000/` 5000/- to ` 7500/` 95000/` 29000/` 27000/` 32000/` 46000/` 84000/` 69000/-
Computation of MPBF for Agriculturists:

a) Income from Agriculture
b) Income from Allied activities
c) Income from Services/Business/other sources
: _________________
: _________________
: _________________
Gross Income: a) +b) +c):- _________________

B. Deductions
a)
b)
c)
d)
On account of Crop Loan

: _________________
On account of Tractors/Tube-well/Thresher loan etc. : _________________
On account of any other loan
: _________________
Income Tax, if applicable
: _________________
Total Deductions: a) +b) +c):- _________________

C. NET INCOME OR SURPLUS = A. B. [Gross Income All Deductions
including installment of proposed loan]
NOTE:
1. It is reiterated that the acceptance of Gross Income in the above manner should
be to the entire satisfaction of the sanctioning authority, to ensure continuance of
adequate future income for repayment of loan installment.
2. However, future rent from the proposed property (the house that is going to be
financed) shall not be included for calculation of loan eligibility as per income
criteria in all of the above cases.
3. In process note invariably the computation of eligible loan amount be given on
tabulated sheet.
4. Repayment of loan by the agriculturist may be by way of monthly/quarterly/half
yearly installments so as to commensurate with generation of income cycle.
However, preference be given for monthly installment in case the agriculturalist is
having repayment capacity/other source of income.
Page | 19
BORROWER / CO-BORROWER
1) In case of Individual/co-borrower, the income of spouse, son/sons and
daughters-in-law may also be considered for arriving at the maximum amount of
the loan provided they have a steady income.
2) Income of parents (up to 70 years of age) residing with their only son, who
intend to borrow home loan, can be considered for assessing the maximum
loan amount of the son.
3) In case the owner of property is made as co-borrower only because property is
standing in his / her name, there shall be no ceiling on age of such owner / coborrower (Income of co-applicant cannot be considered for calculation of MPBF).
4) The income of the joint owner of the property irrespective of relationship
with the borrower may be considered for computation for maximum permissible
Housing Loan. The joint owners shall essentially be the co-borrowers.
5) However, the particular person whose income has been added to arrive at
maximum loan amount will stand as co-borrower of the loan account.
EXAMPLE FOR CALCULATING MAXIMUM PERMISSIBLE BANK FINANCE
(MPBF):Illustration-1
Following applicants have approached the bank for sanction of home loan and
requested to appraise their eligibility.
(` in Lacs)
Name of Relation Age
Profession
Gross Annual Deductions
applicant
Income
including
Income Tax
Mrs. X
Mother
58 yrs Housewife
No income
-Mr. Z
Father
60 yrs Business man
4.80
0.96
Mr. Y
Son
25 yrs Govt. employees
10.80
2.40
(Pensioner)
Mrs. A
Daughter 23 yrs Private employee
8.00
1.50
-in-law
(non-pensioner)
The proposed cost of flat is ` 150.00 Lacs. It shall be presumed as if all the four
borrowers have approached for housing loan independently and their housing loan
requirement shall be assessed independently except Net Take Home Criteria:-
1) On Margin criteria
Total Cost of the Flat/House

Margin (20% for home loan up ` 75.00 Lacs & 25% for home
loan above ` 75.00 Lacs)*
MPBF
(Amt. In Lacs)
` 150.00
` 37.50
` 112.50
Page | 20
2) Net Take Home Criteria
(Amt. in `)
S.No.
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
k.
Particulars
Age Profile
Repayment Years
Gross Annual Income
Gross Monthly Income
Monthly Net take Home(%age)*
Monthly Net take Home (Amt.)
Funds available before deductions (d-f)
Monthly Deductions
(Without proposed Loan EMI)
Fund Available for EMI (g-h)
EMI per Lac
MPBF [(i *1,00,000)/j]
Mrs. X
Mr. Z
58
12
0.00
0.00
30%
0
0
0
0
0
0
60
10
4.80
0.40
30%
0.12
0.28
0.08
0.20
1335
14.98
Mr. Y
Mrs. A
25
23
30
30
10.80
8.00
0.90
0.67
30%
30%
0.27
0.20
0.63
0.47
0.20
0.43
896
47.99
0.13
0.34
896
37.94
Collectively- Eligibility= 0 + 14.98 + 47.99 + 37.94 = ` 100.91 Lacs

MBPF, on the basis of whichever is less criteria, of all above 2 methods, shall be ` 100.91 Lacs.
* In case of joint borrowers, the Gross Annual Income of the individuals can be
clubbed to arrive at the slab for Net take home criteria. Please refer circular no.
HO:Retail:44:2013-14:1126 dated 06.03.2014. In this case, gross annual income of
all borrowers is ` 23.60 Lacs, as such, 30% net take home criteria is taken.
If the borrowers come independently for taking home Loan, then following will be
net take home criteria
Name of the applicant
I (Mrs. X)
II (Mr. Y)
III (Mr. Z)
IV (Mrs. A)
Gross Annual Income

Net Take home criteria
No income
Not eligible
4.80
50%
10.80
30%
8.00
40%
The example and EMI are illustrative only. The actual EMI per Lac shall be computed
on prevailing ROI on proposed loan and available repayment period of respective
borrowers.
Note:The above example is illustrative. If loan is considered in favour of single individual,
then the repayment period and installment shall be governed according to his/her
individual eligibility. However, in case loan is given jointly in favour of more than 1
borrower having different repayment period, then the installment shall be calculated on
the basis of their individual repaying capacity & subsequently clubbed to form a single
installment. Initially this clubbed installment shall be of higher amount and subsequently
it may be of lower amount. (Please refer step down option given in point no.- vii under
repayment of loan section)
Page | 21
DISBURSEMENTa) Release of instalment in case of purchase of ready built house.
Payment be made in lump sum directly to the seller in consultation with borrower.
In case loan for insurance premium is considered the same may be released in
favour of the insurance company after ensuring compliance of margin/loan to
value ratio.
In case the house proposed to be purchased is under construction stage

and builder / Government agency issues a demand letter of payment, under
such circumstances, the loan shall be released in accordance with the
terms of said demand letter or schedule of construction limited payment.
b) Release of installment in case of construction of house /floor

The Loan for construction of house will be disbursed in stages in accordance with a
phased programme according to sanctioned plan as under:
25% when the relative plan is sanctioned.

25% for construction upto the plinth level against production of certificate from
architect certifying the amount spent on construction. The architect shall also
certify that construction has been done strictly as per sanctioned plan.
25% for construction upto the ceiling level against production of certificate from
the architect certifying the amount spent on construction. The architect shall also
certify that construction has been done strictly as per sanctioned plan.
Balance on completion of roof against production of certificate from architect.
The loan for petty expenses of construction can be released to the account of borrower
directly so as to facilitate him to effect petty payments. However, the Branch Incumbent
shall ensure that borrower does not misutilize funds and all other necessary precautions
such as site visit, Architect Certificate before release of loan and other terms and
conditions of Housing Loan Scheme are meticulously complied with.
Note:
In case of housing projects of private builders- Disbursal of housing loans
sanctioned to individuals should be closely linked to the stages of construction
of the housing project / houses and upfront disbursal should not be made in
cases of incomplete/under-construction /green field housing projects.
(Amended vide Circular no. HO:Retail:19:2013-14:540 dated: 04.09.2013
In cases of projects sponsored by Government / Statutory Authorities, loans may be

disbursed 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. (Amended
vide Circular no. HO:Retail: 46:2014-15:952 dt: 07.03.15).
Page | 22
REIMBURSEMENT
BORROWERS:
OF
ADVANCE
AMOUNT
ALREADY
PAID
BY
THE
In case of flats allotted by Govt. agencies like DDA, HUDA, PUDA, NOIDA etc. the
applicants are required to deposit the entire/ part amount within a limited period for
registration of flats in their names. Sometimes it is not possible for them to raise home
loans despite their best efforts, within the specified time. In such cases, the applicants
are left with no option but to arrange funds from other sources including friends and
relatives. With a view to enable such applicants to avail Housing Loan it has been
decided to allow reimbursement of the advance amount already paid by them subject to
compliance of following terms and conditions:
(i)
In such cases, where part/advance payments have been effected, the amount
deposited with the Government Agency may be treated as margin money and the
Bank may reimburse the amount in excess of margin.
(ii) The reimbursement shall be restricted only in those cases, where flats are allotted
by Government agencies and not in case of private builders.
(iii) The borrowers should be able to provide clear documentary evidence of having
paid the amount in advance from sources, which should be clearly identifiable.
(iv) The funds raised should not be older than six months.
SECURITY
The loan shall be secured by Registered / Equitable Mortgage of the property
(House/Flat) created out of bank finance. However, where Registered / Equitable
Mortgage cannot be created immediatelya) The borrower may give an alternate property/ tangible securities having value more
than loan limit with clear titles for interim period.
b) In case the borrower is in no position to offer any alternate security and it is expected
that the title deed/security document for creation of mortgage will be available in one
or two weeks time from registrar office then on merit of the case the sanctioning
authority in such situations may permit obtention of a letter of authority (special
power of attorney) from the borrower authorizing the bank to collect the title-deeds
from the office of the sub-registrar as and when the same is ready for delivery. The
receipt/ counter foil issued by the sub registrar office shall invariably be obtained
along with such authorization. The loan disbursing Branch shall maintain a track
record of such authorization and ensure to collect the title deeds from the sub
registrar office on prescribed future date.
However, all relevant loaning documents for creation of registered / equitable
mortgage shall be obtained at the time of release of loan.
c) In case of purchase of flat etc. at under construction stage from co-operative society/
builder/developer or from public sector/ Govt. agencies like DDA, NOIDA, HUDA,
PUDA etc. where the borrower is having only share certificate/allotment
letter/agreement to sell etc. (as the case may be) as document to sanctify the
transfer of property.
Page | 23
In such cases loan can be secured by obtaining undertaking, as per Annexure-14

and security documents like tripartite agreement Annexure-17&18, power of
attorney as per Annexure-6, letters from the borrower in order to reinforce the right
of the bank to recover its dues as a stopgap arrangement. These provisions are
comparatively for shorter duration.
All above option be exercised in consultation with Banks panel advocate. Further,
to obviate any contingent situation and eventualities which may arise in various
parts of the country because of local practices/law and also to make system full
proof, Regional Heads/branches shall obtain the opinion of their legal retainers to
suggest additional document if any, to supplement the above documents.
Since the registered mortgage of immovable property is better option for creation of
Banks charge, as such, the preference shall be given for registered mortgage over the
equitable mortgage if the same is not creating operational difficulties as well as not
attracting excess stamp duty as compared to duty on equitable mortgage.
Registration of Equitable Mortgage:
With a view to secure advances of banks and to avoid / detect frauds, some of the
States Tamil Nadu, Andhra Pradesh, Gujarat, Karnataka, Maharashtra and Madhya
Pradesh etc. have set up Registry for registering equitable mortgages. In other states,
setting up of Registry is in process. It has been decided that wherever Registry for
registering equitable mortgages has been / shall be established in a State, it shall be
mandatory for the branches to get, equitable mortgages created by them registered with
the Registry established by the State Govt.
OBTENTION OF NEC FROM ADVOCATES AND VALUATION CERTIFICATE OF
PROPERTY FROM APPROVED VALUERS
As per system in vogue, the branches are required to obtain NEC, Legal Opinion, Legal
Vetting and Valuation Certificate (of plot/built up house/flat). Accordingly, the job of
obtaining NEC and valuation certificate of the property shall be assigned to Advocates /
Valuers on the panel of the Bank only.
While perusing the legal opinion, the field functionaries must ensure that the
seller has bonafide title to sell the property and the prospective buyer derives
better/valid title, besides other compliance.
Branches should ensure that advocate on panel of the Bank submits his opinion as per
the standard format 29 of Model Legal Opinion circulated vide Head Office Circular No.
HO/RMD/17/2012-13/175 dated 18.06.2012 & amendments thereafter format enclosed
as per Annexure-27 & Annexure 28.
The instructions communicated by circular number HO/MKTG./RT/39/2011-12/596
dated 24.11.2011 & HO/RMD/51/2011-12/626 dated 05.12.2011 and amendments
thereafter on obtention of valuation certificate shall be perused and comply.
Page | 24
EXTENSION OF CHARGE ON HOUSE PROPERTY TO OTHER CREDIT FACILITIES:

Sanctioning authority can permit extension of charge of the house property to cover
other credit facilities of the borrower subject to the condition that Value to Loan Ratio
(VTL) should be kept at 150% minimum (or Loan to Value Ratio be kept at 66.67%
minimum) of present outstanding of home loan and residual present realizable
value (as per latest valuation of property) will be available for collateral security in
other loan accounts. (Amended vide circular no. HO:Retail:32:2014-15:610 dated: 27.10.2014)
It should invariably be ensured that the terms and condition of credit policy, guidelines
regarding frequency of valuation of property as guided by RMD Deptt. and housing
scheme of the Bank are complied with.
CONSIDERATION OF HOUSING LOAN ON A HOUSING PROPERTY HELD AS
COLLATERAL SECURITY IN THE BUSINESS ACCOUNT
RLCC-RH may consider/sanction housing loan on properties already mortgaged with
the bank in business account within their existing discretionary powers on housing loan.
However, it shall be ensured that:
i)
Business account has been running satisfactorily during the last one year and is
a standard asset.
ii) Sufficient collateral security is available to cover over-all exposure in the
business as well as in housing loan account in terms of the credit policy of the
bank issued from time to time.
iii) However, in all circumstances, the housing loan account shall remain 150% of
present outstanding of home loan and residual present realizable value (as
per latest valuation of property) will be available for collateral security in other
loan accounts..
iv) The Branch incumbents are not authorized to consider such specific
proposals even though the proposal falls within their discretionary powers.
Minimum margin/contribution of the borrower in such cases shall be 33.33%
instead of existing 15%,20% and 25% as the case may be.
CENTRAL REGISTRY
Banks charge of mortgage shall be noted in the Central Registry System within 30 days
of creation of such charge. The increase in limits or modification of charge shall also be
got registered within 30 days. The procedural aspects communicated from time to time
by Risk Management Deptt. (RMD) be meticulously complied with.
RATE OF INTEREST (FLOATING)
a) Upto 2 houses
Particulars
Rate of interest Interest Table Code Free code 10 Scheme Code
Base Rate
BT633
HL01
TL601
Irrespective of Loan Limit
Page | 25
b) Home Loan (CRE)

If the applicant intends to avail home loan for 3rd house onward, the said exposure for
third unit house onward be treated as CRE exposure. The rate of interest in this case
shall be as under:
Particular
Under CRE
Rate of interest
Base Rate + 0.50%
Interest Table Code Free code 10 Scheme Code

BL050
HL01
TL601
The respective sanctioning authorities as per the powers delegated under Oriental
Home Loan Scheme can consider Home Loan proposal under CRE.
(Amended vide Circular no. HO:Retail:18:2014-15:425 dated: 27.08.2014 & HO:Retail:39:201415:764 dated: 19.12.2014)
b) Home Loan (Repair & Renovation)

Particulars
Rate of interest
Base Rate
Interest Free code

Table Code
10
BT633
HL05
Scheme
Code
TL605
Note:
These rates of interest shall be applicable only on fresh Home loans.
b) Calculation of interest:1. Interest on amount of loan will be applied at the prevailing rate per annum on
daily reducing balance with monthly rests.
2. In case any fresh additional/supplementary loan (excluding home furnishing loan)
is considered in favour of existing borrower and during the currency of existing
loan, the rate of interest in such accounts shall be determined as per the
slab falling in respective categories after clubbing the outstanding of
existing accounts plus proposed loan limit. If the derived Rate of Interest is
higher, then the existing rate, the new rate will be applicable on both the
accounts or if the new rate is lesser than the existing rate, then two different rate
on existing account (prevailing rate) and new account (fresh rate) shall be
applicable.
3. The rate of interest shall be on floating rate basis as well as on monthly rest.
4. Interest during moratorium period shall be paid as & when it becomes due.
OR In case borrower exercises the option of not paying interest during
moratorium period, interest component charged in the account for the
moratorium period will be added to the loan amount and would be spread
over EMIs for the entire repayment period.
5. Rate of interest is subject to change as per RBI/Banks guidelines circulated from
time to time.
Page | 26
6. With a view to facilitate the branches calculation of equated monthly instalments

instantaneously, a comprehensive chart showing EMIs on applicable interest
rates for loan of ` 100000/- is enclosed as per Annexure-1.
c) Intimation of change in Interest Rate:The borrower shall be deemed to have notice of changes in the rate of interest
whenever there are changes in Base Rate (either increase or decrease) by display
of Base Rate on the website of Bank/Notice Board of the Branch or published in
news papers or made through entries of the interest rate charged in the
passbook/statement of account furnished to the borrower and the borrower is liable
to pay such revised rate of interest.
In addition, Bank shall have a right to change the spread (above Base Rate) on
reset date.
A condition clause to this effect be also incorporated in sanction letter
(Annexure-31).
However, the field functionaries shall also comply the instructions in this regard as
are mentioned in particular circular communicating changes in Base Rate.
d) Penal Interest: The application of penal interest clause shall be governed in
accordance with Banks loan policy. Presently the penal interest shall be charged at
the rate of 2% over and above the normal rate of interest on irregular amount of loan
and for the period of irregularity.
e) Pre-payment penalty
NIL - The prepayment penalty clause is completely waived. None of the occasion
the pre payment penalty will be applied in the account, even the borrower opts to
switch his home loan account to other bank/financial institution.
INTEREST SWITCH OVER OPTION
The interest switch over option shall be available to existing borrowers on any
occasion, when they feel the current prevailing card rates of Home loan interest is in
their favour as compared to interest actually applied in their account. They may
exercise the interest switch over option subject to paying onetime fee as under:
S.No.
a)
b)
Loan limit
Upto ` 25.00 Lacs
Above ` 25.00 Lacs
Switch over option fee(payable one time)

0.50% of outstanding as on the date of switch over
0.75% of outstanding as on the date of switch over
Note:
1. The fee shall be governed in accordance with sanctioned limit and not on the
basis of outstanding in particular account.
2. This option shall be available only once during the currency of the loan.
3. The respective sanctioning authority of the loan may permit the switchover
option.
4. The facility will be extended only in standard regular accounts.
Page | 27
5. The fee recovered shall be credited to Commission Received Miscellaneous.

6. While considering switchover option the terms of original sanction shall not be
changed i.e. the repayment period, interest rate slab/ group etc. and accordingly
the new rate of interest shall be determined.
Further, there would be some borrowers (normally high value/ important
customers), who could still plead for a complete waiver of such charges. In such
cases the following authority can permit deviation in accordance with discretion
given below:
Authority
HLCC-ED
RLCC-RH
Deviation
Authorized to permit 100% waiver in switch over fee.
Authorized to permit 25% waiver in switch over fee
The field functionaries are advised to note the above provision in the scheme and not
only check any takeover of Home loan from our Bank but by extending above benefits
to valued customer explore the possibility of fetching more business from them.
PREPONEMENT OF REPAYMENT IN EXISTING ACCOUNTS AND ADJUSTMENT
OF INTEREST RATES
The sanctioning authority is permitted to consider reschedulement of repayment period
taking the 1st date of disbursement as the base and to arrive at applicable interest rate
as available in a particular time-segment. However, the newly determined interest rate
shall be applicable only from prospective effect i.e. for the remaining period of loan as
proposed by the borrower(s) after considering the satisfactory conduct of the account in
past and future source of payment.
However, this option can be exercised only once during the currency of the loan
by the borrower.
It must be ensured that after exercising this option, if any borrower(s) proposes to
shift/transfer his loan account at any stage to some other bank/financial institution, the
benefits so availed by him in the process shall be withdrawn and interest-differential
shall be recovered.
In the event of borrower(s) failing to repay the loan as per the new schedule, penalty of
2% shall be charged for the period of default on overdue amount.
An undertaking, as per the format (Annexure-9) shall be obtained from the borrower(s)
and shall be retained with the loaning documents. Intimation shall be sent to the
borrower(s) as per Annexure-10 and duly acknowledged copy of the same shall be kept
along with the loaning documents.
PROCESS FEE/ DOCUMENTATION CHARGES*

Loan limit
Process fee / Documentation Charges
Page | 28
Irrespective
of any limit
Process fee - 0.50% of the loan amount, subject to maximum of `

20000/- plus service tax, if any
Documentation charges -NIL
* Does not include advocate charges, valuer fee, insurance charges and other
applicable out of pocket expenses which shall be borne by the applicant on actual
basis.
* The process fee shall be recovered as per banks existing guidelines on the basis of
above rates.
* The process fee shall not be recovered from staff/ex-staff members if they avail home
loan under general public scheme.
BOUNCED CHEQUE/ECS/NACH OR STANDING INSTRUCTION DISHONOURS:A penalty of ` 250/- + service tax will be charged for every bounced cheque/ECS/NACH
or SI dishonors. The rate may vary from time to time.
INSPECTION CHARGES
- Nil
INSPECTION CLAUSE
The property financed under Home Loan shall be inspected at yearly interval or at
irregular interval in case of need after giving due notice to the borrower. This inspection
is besides pre and post sanction visit.
It is also relevant that in case of salaried employee, details of employee from employer
be obtained including employees ID/PF number, permanent address, date of joining,
retirement etc. besides other details. Further, now-a-days particularly in multinational
companies, the employees are switching over from one company to another or the
nature of their employment is on contractual basis for a particular period. In such type of
employment due care be taken by the sanctioning authority to ensure continuity of
adequate income of the borrower for serving the loan instalment / interest.
Time to time circular/guidelines issued in this regard shall also be complied.
REPAYMENT OF LOAN
i.
The entire loan shall be repaid in maximum of 360 months preferably in

equated monthly instalments including the moratorium period subject to the age
of dwelling unit as under:
Age of the dwelling unit
Less than 10 years
Older than 10 years
ii.
Repayment period
Maximum 30 Years
Maximum 25 years
Maximum Repayment Age:

For Salaried (with pension) & other individuals: Up to 70 years.
For Salaried (Non-Pensionable): upto 60 years or superannuation.
Page | 29
iii.
Due diligence on repaying capacity and financial soundness be exercised by the

sanctioning authority while considering loans upto repayment age of 70 years of
the borrower.
iv.
Repayment of loan by the agriculturist may be by way of monthly/quarterly/

half yearly instalments so as to be commensurate with generation of
income cycle. However, preference be given to recover monthly instalment in
case the agriculturalist is having repaying capacity.
v.
In case of takeover of home loan from other financial institution / Bank, the
original repayment period shall not be rescheduled. The takeover amount shall
be recovered in remaining period of repayment as mentioned in terms of sanction
of other Banks, subject to the maximum of 360 months.
vi.
The Equated Monthly Installment (EMI) are/shall comprise of principal and

interest.
vii.
Step Down Option- In case of joint borrowers, with different age profile,
where one or more borrower will attain maximum permissible age during
currency of loan, the step down option shall apply. EMIs will be fixed
according to number of years, each co-borrower shall pay within maximum
permissible age limit/repayment period. The EMI of each co-borrower shall
be clubbed to form a single installment. The clubbed installment shall be
higher during the available repayment period of elder borrower and may
reduce thereafter.
viii.
All the borrowers shall be jointly and severally liable to repay the loan irrespective
of the fact whether they are joint owners of the property or not.
ix.
In case of joint borrowers in different age groups and varied income, maximum
permissible loan shall be the sum total of permissible loan to each individual
borrower as if each one has applied independently for housing loan. Similarly
EMI will be fixed for each joint borrower & clubbed to arrive at total EMI.
The above said Maximum age limit of borrower/ co borrowers is permissible
subject to the age by which the loan should be fully repaid, availability of
sufficient, regular and continuous source of income for servicing the loan
repayment to the satisfaction of Loan sanctioning authority.
x.
The repayment of loan shall be made through Electronic Clearance System

(ECS) / NACH Debit / Standing instructions / Auto Collection Procedure from
the operative accounts of the borrower with us, given the mandate to collect
the EMI. The use of post dated cheque be discontinued as per government
guidelines in context to compliance of Go Green Concept.
xi.
PDCs obtained in existing accounts may be retained and presented for recovery
instalment as per existing terms. However, the borrower be given option to switch
over to ECS/NACH/ Standing instructions/Auto Collection Procedure for payment
of future instalment.
Page | 30
xii.
In view of upward fluctuation in rate of interest, the sanctioning authority is

permitted to exercise following two options subject to expressed consent of the
borrower(s):
a) To recalculate / revise the existing EMI amount for recovery of the then
outstanding in remaining existing repayment period taking in to account the
increase in rate of interest.
b) To recommend Head Office for increasing the repayment period of loan with
same / revised EMI wherever required subject to a maximum of 360
months. However, while recommending, it be ascertain that the
borrower is having repaying capacity to pay future instalment.
RBI guidelines from time to time regarding Restructuring of Home Loans shall be
applicable .
TERMS OF PAYMENT
The borrower may choose any of the under noted three options to suit his convenience:
1.
EMI (Uniform Instalments for entire repayment period).
2.
Payment of only interest for first five years and thereafter in EMI for next 25 years.
3.
In case moratorium period is permitted, the borrower can exercise his option to
repay the interest amount during moratorium period or at a subsequent date i.e.
instalment commencement date.
4.
In case the borrower has adequate repaying capacity and request of preponment
of repayment period the same can be permitted by the sanctioning authority after
considering the satisfactory conduct of account and ensuring future source of
repayment. However, this option can be exercised only once during the currency of
the loan.
An undertaking as per Annexure- 9 shall be obtained from the borrower(s) and be
retained with loaning documents. An intimation shall also be sent to the
borrower(s) as per Annexure 10 and its duly acknowledged copy be kept on
record.
5.
In all such cases where the borrower makes a lump sum/bullet payment in
advance and request for reducing future EMI, then the sanctioning authority may
revise the existing EMI subject to compliance of the followings:
a) The account is standard & regular
b) After receipt of lump sum/bullet payment from borrower, the EMI be
restructured in a manner that the residual outstanding balance stand
liquidated within the original residual repayment period.
c) The terms of original sanction (more particularly interest rate & repayment
period) will not be changed.
6.
To universalize the repayment period, preference will be given for EMI based
repayment of uniform instalments.
Page | 31
MORATORIUM PERIOD
a) Maximum permissible moratorium period is 18 months from the date of first
disbursement or Upto the date of possession of flat whichever is earlier subject to
Maximum permissible moratorium period of 18 months from the date of first
disbursement.
b) The above moratorium period shall be permitted within the overall repayment
period (the repayment period shall be inclusive of moratorium period).
c) In case of take over Home loan account from other Banks/FI the repayment shall
commence from the following month of disbursement/take over date of loan.
d) In case of takeover of home loan under implementation stage, as per terms of
sanction of previous bank from where loan has been taken over.
NOTE: However, in all above circumstances, the option be preferred for recovery of
accrued interest during moratorium period, if EMI is not served since inception.
Alternatively, the accrued interest during moratorium period be capitalized as on the
date of commencement of installments.
CONSTRUCTION PERIOD
Construction period is different from moratorium period i.e. moratorium period is a
repayment holiday period for EMI whereas construction period is time given in
construction of House. Maximum moratorium period can be allowed upto 18 months
thereafter repayment will start, however construction period can be allowed as under:
A) Construction Period for Govt. / Builder Flats: In case of purchase of flat from Govt.
Agencies/Builders, the sanctioning authority shall be empowered for permitting
maximum permissible construction period as per the builder construction plan / schedule
or 48 months from the date of first disbursement, whichever is earlier.
B) Construction Period for other than Govt. / builder flats (self construction)
a) In case of already owned plot /purchase of plot & construction thereon, the
permissible construction period is 24 months from the date of first disbursement.
b) In case of plot/ land being allotted by Govt. authorities e.g. HUDA, PUDA, GDA,
GAMADA etc., the permissible construction period shall be 24 months from the
date of possession or period allowed by Govt. authority, whichever is earlier.
(Amended vide Circular no. HO:Retail:48:2014-15:980 dt: 17.03.15)
C) Other Terms
a) In case of purchase of ready to move flat/house the construction period be
treated as nil.
b) Commercial Rate of Interest: In case construction of the house is not
completed as per sanction terms from the date of possession of the plot/land or
the plot/land is alienated, commercial rate of interest @ Base Rate+3% shall be
charged from the date of disbursement of the loan and loan shall be recalled as
per the normal procedure of the bank. (Amended vide Circular no. HO:Retail:48:201415:980 dt: 17.03.15)
Page | 32
TREATMENT OF RESCHEDULING OF REPAYMENT PERIOD

Where the borrower has initially opted for a shorter repayment period but later on
intends to extend the same because of shrinkage of income/repayment capacity due to
unforeseen circumstances, sanctioning authority may extend repayment period upto a
maximum of 30 years inclusive of lapsed period on case to case basis on merits.
Interest rate as well as EMI shall be re-worked on balance outstanding for the proposed
remaining extended repayment period on the current applicable interest rates or on the
rates applicable as on base date (the date on which the loan was originally sanctioned)
whichever is higher.
INSURANCE
Insurance of House: An insurance cover under the agreed Banks clause as per
system in vogue of house / flat (structure) financed under home loan scheme of the
Bank, be obtained.
Life insurance cover of the borrower: Group Secure Scheme (GSS) for Housing
Loan Customers launched by our Marketing Department vide Circular No. HO
/Mktg./JV/ 09 /2013-14/423 dated 31.07.2013, shall be perused and its benefit be
informed to the prospective home loan customers for cross selling of this product.
Insurance premium amount in both cases shall be borne by the borrower.
However, life insurance premium can be financed by the bank as a component of home
loan, if LTV ratio is maintained OR Personal loan can be raised under personal loan
scheme for home loan borrowers. (HO:Retail:21:2014-15:441 dt: 29.08.2014 &
amended vide circular no. HO:Retail:32:2014-15:610 dt: 27.10.2014).
TIME FRAME FOR DISPOSAL OF LOAN PROPOSAL
The maximum time frame for disposal of applications has been prescribed as under:
For Loans under Branch Manager Discretionary Powers:
3 to 7 days after submission of full set of documents by the borrower.
For Loans under Regional Office / Head Office Powers:
Maximum upto 15 days after submission of full set of documents by the borrower.
DISCRETIONARY POWERS
A. For General Public: (including CRE)
(`. in Lacs)
HLCC-ED
FULL
GM
500
RLCC-RH
DGM
AGM
300
150
VI
300
Branch Incumbent- (Scale)

V
IV
III
II
150
100
50
20
I
10
(Amended vide Circular no. HO:Retail:48:2014-15:980 dt: 17.03.15)
The field functionaries are also eligible to sanction home loan to directors/partners (in
their individual capacities) of a company/firm, whose original limits are sanctioned by
higher authorities.
Page | 33
B. For Staff under General Public Scheme

Place of posting of the employee availing the Loan
Sanctioning
Authority
All Branches/RO (other than RH)/Service Branch/STC (other than STC, RLCC-RH
Noida) / Currency Chest / COPEC / Data Centre/ Stationary Godown
(Except stationary Godown at Faridabad) / Regional Inspectorates
(other than RI Heads)
All Staff posted at Head Office/Stationary Godown at Faridabad/STC, HLCC-ED
Noida/ Regional Heads and Regional Inspectorate Heads
DEVIATION / CONCESSION AUTHORITY
S.No.
1.
2.
Authority
HLCC-ED
Deviations / Concessions
1. Concession in ROI, subject to minimum of Base Rate
2. All Scheme related deviations
Authority as per Process Fee (Authority as per discretionary powers
Discretionary power vested with them as defined in Discretionary power chart)
chart
Note: The respective Authority shall permit deviations in the Scheme/interest

rate/process fee on merits within the overall objective and prescribed guidelines of
RBI/Bank issued from time to time.
LOAN FOR ADDITIONAL CONSTRUCTION/TOP-UP LOAN ON THE EXISTING
HOUSE
Whereas we have stipulated requirements for fresh loans, position in respect of loans
for additions to house owner requires separate classification as under
1. Fresh loanees i.e. who have not availed any housing loan earlier or have repaid
their existing loans.
2. Persons who have availed housing loan from us or from any other financial
institutions and seek additional loans.
In case of borrowers falling in the first category, their loan entitlement, repayment, etc.
shall be considered in accordance with the terms of fresh Housing Loans.
In case of additional loans to existing loanees, their overall entitlement guidelines shall
be the same. However, for computing their entitlements for additional loan, the
difference between the amount of existing home loan and the fresh assessment of
MPBF based on Margin & Net take home criteria (at the time considering additional
loan) shall be worked out to arrive at the maximum entitlement for the additional loan.
In case of those borrowers whose first housing loan is outstanding with us and the
additional loan is for additions in the same house, the repayment of the additional loan
shall be so fixed that both the loans are repaid within the repayment period fixed for the
first loan.
Page | 34
Further, in case of applicants who are availing housing loan from our bank, the security
shall be existing properties mortgaged with us and charge will be extended for the
additional limit and all other formalities be completed as in fresh sanctions.
SUPPLEMENTARY LOAN AND CREATION OF SECOND CHARGE
Present scheme permits supplementary housing loan to salaried persons who have
availed housing loan for construction / acquisition / renovation from their own Employer /
Department but need supplement sources to meet their additional cost of
construction/renovation etc. The security in such cases remains to be the second
charge over the property mortgaged in favour of the first lender.
As per the system in-place, the document required to create second charge, necessitate
physical delivery of the title documents by the first lender to the bank. It has been
experienced by the branches that while the Central govt. Ministries readily agree to part
with the title-documents to Bank but other departments/PSU do not generally agree to it
and hence good business potential is lost in this process.
To overcome this difficulty, document for creation of second charge without insistence
of physical delivery of title documents from 1st lender have been devised and copy of
the documents to be obtained in such cases is enclosed with this circular as Annexure
20 to 25.
However, this option shall be exercised only where it is not feasible to obtain delivery of
title document from the first lender.
HOUSING LOAN LINKED TO VARIOUS GOVERNMENT SPONSORED SCHEME/
CUSTOMIZED SCHEME OF LOCAL/STATE GOVERNMENT
The Branches shall continue to extend financial assistance under above said existing
specific scheme by complying the norms, terms & conditions defined in particular
scheme, within the broad parameters of Banks Home Loan Scheme.
In case of any new scheme, launched/formulated by any Government/ Development
Authorities or NHB, the same shall be referred to Head Office for approval and its
implementation.
SECOND HOME LOAN
Loan to existing home loan borrowers for purchase/construction/repair/renovation of a
second house can be considered provided net take home income/salary after
instalments of both the loans and other deductions is in accordance with minimum net
take home income stipulation. It shall, however, be ensured that existing account is
running regular and the facility is not misused for speculative purposes.
TAKE OVER OF HOME LOAN ACCOUNT
In view of our cost effective scheme topped with many other attractions, persons who
have already availed home loans from other FIs/Banks, may express willingness to
switch their home loan accounts to our bank.
Page | 35
For sanctioning such loans, all other terms and conditions as are defined herewith shall
be complied with.
i)
The account to be taken over should be classified as Standard Regular by the

previous banks / FIs and a certificate to this effect be taken from the existing
bank. There should not be any rephasement / reschedulement in the account in
the last 3 years. (Amended vide circular no. HO:Retail:39:2014-15:764 dated: 19.12.2014)
ii)
Before considering such requests, it shall also be ensured that the house
property can be validly charged to the bank. However, mechanism of charging of
property may be devised by the Regional Office in consultation with the legal
retainer in case of any localized problem.
iii)
To safeguard against the falling/stagnant property prices, it shall be ensured that

the value of the property vis--vis balance in the existing loan account is
sufficient to cover margin requirement as per our home loan scheme.
The amount taken over must fulfill the criteria of our stipulated margin
irrespective of the margin imposed / not imposed by other financing institutions.
iv)
The original repayment period shall not be extended.
v)
It shall also be ensured that such proposals confirm to all the parameters of our
home loan scheme/guidelines circulated from time to time.
vi)
The collateral securities charge to the existing Banker should not be diluted
however, the sanctioning authority, in its best judicious wisdom, may consider
waiving of third party guarantee only in select cases where risk-profile of the
account is anticipated to be negligible.
Discretionary powers: The discretionary powers for considering takeover of home loan
proposals are defined as under:
Authority
Branch Incumbents
Discretionary Powers
The branch incumbent is empowered for
takeover of home Loan where working capital
limit is availed by borrowers from our bank &
housing loan from other banks subject to
condition that working capital limit must be
standard for last 3 years.
For cases falling under the
RLCC-RH
powers of Branch (other than
above) & Regional Office
For cases of Head Office power
HLCC-ED
DEVIATION AUTHORITY FOR TAKEOVER OF HOME LOAN PROPOSALS: HLCC-ED
RLCC-RH is empowered for permitting following deviations in takeover of Home
Loan Cases.
1. Takeover of home loan under Implementation Stage (construction based houses
/ flats) and additional Loan for the same house.
Page | 36
2. Takeover of home loan sanctioned for purchase of plot (subject to condition that
the loan is sanctioned under home loan scheme in other Bank) and additional
Loan for construction of house, on account of increase in the cost of project due
to cost escalation of construction/ Builder and any additional construction,
thereon.
3. Sanction of additional Loan (at the time of takeover or after the takeover) by way
of OBLS, OMLS, Education Loan etc. by extension of charge on the same
property. However, it shall be ensured that all other terms of the respective retail
schemes viz. Margin, LTV etc. shall be complied with.
(Amended vide circular no. HO:Retail: 40:2013-14:994 dated: 23.01.2014)
HOUSING LOAN TO STAFF UNDER GENERAL PUBLIC SCHEME

Vide HO Circular No. HO/HRD/ 72/17 /2014-15/132 dated 21.05.2014 & Circular no.
HO/HRD/72/71/2014-15/805 dated 01.01.2015, housing loan to staff can be sanctioned
as to general public with the following additional conditions:
1. Net Take Home: The minimum take-home salary shall not be less than the
stipulated norms for different income slabs. However, the minimum take home
income shall be taken 40% for all slab of income in case the staff is availing
overdraft limit under staff scheme as against the stipulated norms to general
public.
2. Loan can be availed for purchase/construction/renovation for own residential
purpose and not for commercial/speculative purpose.
3. The terms& conditions i.e. rate of interest Compounding factor and Repayment
period shall be same as to general public.
4. In view of legitimate self occupancy purpose, a second loan to general public is
introduced. On similar lines, the staff members may avail second housing loan
under general public scheme for acquiring house/ flat for their need base self
occupancy purpose. However, the second loan shall be subject to their eligibility
and repaying capacity under general public home loan scheme as well as
minimum take home salary.
5. If spouse of the staff member intends to avail loan under general public scheme,
staff member can become co-borrower after taking necessary permission from
vigilance / HRD department, wherever required. Security under staff housing loan
shall also be acceptable under general public scheme.
6. Staff members shall also be eligible for loan for renovation purposes on the terms
applicable to general public.
7. If the home loan is also availed under the staff home loan scheme the general
terms & conditions of the staff loan shall be complied with.
Page | 37
HOME LOAN FOR NON-RESIDENT INDIANS

Eligible NRIs
Reserve Bank of India vide its notification no. FEMA 21/2000 RB dated 3 rd May 2000
and amended master Circular No. RBI/2014-15/9 dated:01.07.2014 and circular no.
4/2014-15 updated upto 11.03.2015 has notified the regulations applicable to a person
resident outside India for acquiring and transferring immovable property in India.
There are two categories of Non-residents who have been given general permission by
Reserve Bank of India to acquire immovable property other than
agricultural/plantation/farm house in India. They are:
1.
2.
Indian citizens
Person of Indian origin
As per Regulation 2(c) of Notiifcation No. FEMA 21/2000-RB dated May 3,2000, A
Person of Indian origin for the purpose of this general permission means an individual
(not being a citizen of Pakistan or Bangladesh or Srilanka or Afghanistan China or Iran
or Nepal or Bhutan, Macau & Hongkong) who
i)
ii)
At any time held an Indian passport, or

Who or either of whose father or whose paternal grandfather was a citizen of
India by virtue of the constitution of India or the citizenship Act 1955 (57 of 1955)
NRIs not covered under above will be required to obtain prior permission of the Reserve
Bank of India for purchase/acquisition of residential premises in India.
Persons who require prior approval
Regulation 7 of FEMA notification no. 21/2000 dated 03.05.2000 prohibits any person
who is a citizen of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal or
Bhutan, Macau & Hongkong to acquire or transfer immovable property in India, other
than lease, not exceeding five years, without the prior approval from Reserve Bank. In
other words, a person whether resident in India or Resident outside India who is a
citizen of any of the above countries require prior approval of Reserve Bank for
acquisition of immovable property in India.
Branches may therefore, allow housing loan facility only to those NRIs who either fall
under the general permission or have obtained prior approval from Reserve Bank.
Apart from the conditions specified in the Housing Loan scheme of the bank following
additional conditions shall also be applicable.
a.
b.
c.
The quantum of loan, margin money and the period of repayment shall be at par
with those applicable to housing finance provided to a person resident in India.
The loan amount shall not be credited to Non-Resident External (NRE)/ Foreign
Currency Non-Resident FCNR)/ Non-Resident Non repatriable NRNR) account
of the borrower.
The loan shall be fully secured by registered / equitable mortgage of the property
proposed to be acquired, and if necessary, also by lien on the borrowers other
assets in India.
Page | 38
Payment for acquisition of Immovable Property & Repayment of Loan

Payment for acquisition of Immovable Property, instalment of loan, interest and other
charges may be paid by the borrower from any of the following sources.
Funds received in India through normal banking channels by way of inward remittance
from any place outside India or by debit to his / her NRE / FCNR (B) / NRO account.
Additional documents/papers required from the eligible NRIs
In addition to the documents/papers/application, form etc. required as per the housing
loan scheme of the bank, following additional documents/papers/ information shall be
obtained from eligible NRIs.
1.
2.
3.
4.
Approval of Reserve Bank, wherever required.

Certified copy of relevant pages of passport with visa stamped on it.
Copy of valid work permit.
Copy of appointment letter and employment contract, in English, duly attested
by employer/Consulate/Embassy, in case, it is in any other language.
5. Copy of Continuous Discharge Certificate (CDC) for applicants from Merchant
Navy.
6. Details of previous employment.
7. Bank statements for the last six months both domestic and international.
8. General Power of Attorney duly attested by the Indian Consulate in case NRI/
PIO is not in India. If the NRI/PIO is in India, then the Power of Attorney can
be locally notarized.
9. Copy of labour card/identity card (translated in English and countersigned by
the consulate) if employed in the Middle East.
10. Salary Certificate specifying name, date of joining, designation and salary
details.
11. Undertaking cum declaration that the loan shall not be utilized for
acquisition of Agricultural/plantation/farm house in India and that he is eligible
to acquire immovable property in India in terms of FEMA 99 and
rules/regulations made there under.
12. Status of the NRI i.e. whether Indian citizen or person of Indian origin.
Please refer RBI Master Circular No. RBI/2014-15/9 dated:01.07.2014 and circular
no. 4/2014-15 updated upto 11.03.2015 for any clarification. Branches may also
refer the guidelines/instructions issued from International Banking Division, Head
Office from time to time for its meticulous compliance.
TIE-UP ARRANGEMENT WITH BUILDERS FOR FINANCING HOME LOANS
The Regional Heads are empowered to approve the projects of reputed builders for
extending Home Loans to the prospective buyers/borrowers. The need and importance
of having such tie-up arrangements for marketing of bulk housing loan proposals have
been emphasized from time to time. However, the progress in this regard has not been
encouraging and not many reputed builders/projects could be approved / marketed by
the Bank.
Page | 39
In certain other instances, it has been found that no proper due diligence was made
before approving the Builders and their projects which exposed the bank to greater
financial risks.
In order to ward off such operational risks, it is decided to standardize the processing
system of approving the tie up arrangements with the Builders/Housing Projects at the
Regional Office level. We enclose a copy of the process note format (Annexure-26),
which may be amended according to requirement. The format shall be used while
considering a specific Housing Project/Builder for tie-up arrangement.
GUIDELINES ON TIE UP ARRANGEMENT
1. It is to be noted that tie-up arrangement with builder shall not be mandatory for
considering Home Loan. Wherever clear title deeds and favourable legal opinion is
available, the single loan proposal can be considered by the sanctioning authority
with or without builders tie-up. Regional Head shall explore all possibilities to tie-up
with all reputed builders in his Regions with following guidelines.
1.a Tie-up arrangement will be applicable for Bulk marketing of proposal only on
existing terms & guidelines. In case a tie-up with builder is approved then fresh
legal opinion & valuation certificate from each customer is need not to be obtained.
Consequently the prospective buyers save cost & time on extraction of legal
opinion and valuation certificate. The concerned branches relying upon such tie-up
may expeditiously dispose the loan proposals received under such project.
1.b. In case where the Builder has availed loan facility for their residential projects from
our bank, the sanctioning authority (of project financing) will stipulate a term that
our branches shall be authorized to automatic financing of housing loan without
any tie-up arrangement. Further, following clause shall be invariably incorporated
in the sanction letter to the builder / developer:
The Builder / Developer must refer their home buyers to our bank for availing
Housing Loan.
The bank will have the first right of refusal in all such referred cases.
The builders must incorporate our banks name & logo in their advertisement.
(Amended vide circular no. HO:Retail:06:2014-15:18 dated: 09.04.2014
Further, similar projects of the same Builder shall also qualify for financing Home
loan by the branches subject to favorable legal opinion & statutory compliance by
the builders. Wherever clear title deeds and favourable legal opinion is available,
the single loan proposal can be considered by the sanctioning authority with or
without builders tie-up.
1.c. In all cases, due diligence guidelines should be adhered to by the Sanctioning
Authority to avoid any chances of fraud, delinquencies or acquisition of disputed
property etc.
A list of tie-up arrangement with builders for residential housing loan projects is
regularly updated at Home page of OBCWEB. The Regional Heads are advised to
send the information for updation of list on regular basis.
Page | 40
1.d. The respective sanctioning authority while considering such Home loan proposals
as per Scheme must ensure that the Builder is a reputed one, all statutory
clearances including possession are available to ward off any multiple sales of flats
and No Objection Certificate from financing bank (to builder), if any shall be
obtained. Further, the project approved for Home loan financing by other Banks
may be given preference.
1.e. Marketing Manager may be given specific target to market Home Loan borrowers.
1.f. As a Post approval formalities the approving Regional Office shall communicate the
details of approval to Head Office, Retail Credit Deptt. as well as to branches of
their Region for exploring the benefit of such tie-up. The adjacent Regional Offices
be also informed about such tie-up for their onward communication to the
branches situated in nearby vicinity of such project.
2. To speedup the process, all those projects, which have been approved by any two of
the Banks/ institutions namely HDFC Bank / HDFC Ltd., SBI, LICHF, ICICI, Punjab
National Bank / PNB Housing Finance Ltd. based on their stand alone sanction
letters, be approved.
The approval be accorded subject to compliance of following conditions that:
a) Above banks approval should not be older than six months from the date of
consideration of our approval;
b) The visit to the project site has been undertaken by the Bank officials and visit
report is held on record; It should be ensured that no adverse feature is
observed during the visit.
(Amended vide circular no. HO:Retail:39:2014-15:764 dated: 19.12.2014)
Title clearance & NEC Clause: In the above mentioned cases, title clearance report &
NEC of other banks (listed banks) to be obtained from builders and should be vetted by
the legal retainer of RO/ HO.
3. Tie-up arrangement with builder is not mandatory for considering individual Home
Loan except for Noida / Greater Noida locations wherein:
a) If the project in Noida / Greater Noida is already financed by the Bank, then the
housing loan may be considered for sanction for residential property in the
project by the delegated authority.
b) If the project in Noida / Greater Noida is not financed by the Bank, then the
project shall be first approved by the HLCC-ED at Head Office. Only thereafter
the housing loan may be considered for sanction for residential property in the
project by the delegated authority.
Note:
1. The NOC of Noida / Greater Noida authority for creation of mortgage in favour of
bank be accepted having clause that in the eventuality of default by the builders in
making their payment, the authority will have their first charge.
Page | 41
2. Since the builder has a right to execute sub-lease deed after making full payment
to Govt. authorities, as such, during intervening period the existing system of
obtaining tripartite agreement may continue in all such cases of housing loans.
3. However, a proper record & follow-up shall be made by Regional Office / loan
disbursing branch to ensure immediate creation of mortgage, as and when full &
final payment is made by the builders to the Govt. or lease / sale deed is executed
in favour of the borrower.
4. Apart from Noida & Greater Noida locations, the pre-condition of having Tie-up
arrangement with Builders for Home loan sanction has been done away with.
The respective sanctioning authority can consider a single or multiple loan
proposals from a project with or without Tie-up with builder subject to exercise of
due diligence measures. The instructions were communicated vide circular no.
HO:Retail:05:2012-13:77 dated 10.06.2012.
5. Staff members are also eligible for availing home loan for purchasing flat / home
at such locations subject to compliance of above conditions & other instructions
issued by HRD / Vigilance Deptt.
6. All residential projects financed by our bank in subject location shall be eligible for
extending home loans to general public / staff.
7. All other guidelines for risk mitigation as are stipulated in the home loan scheme
shall be meticulously complied with. (Amended vide Circular No. HO:Retail:12:201314:196 dated: 26.06.2013)
CASH DOWN PAYMENT TO BUILDER/GOVERNMENT AUTHORITY

Many times customers request for cash-down payment/ upfront disbursal of housing
loan (under 80:20 or 75:25 scheme) to builder to take advantage of the huge cash
discount being offered by them on purchase of flat.
In view of the higher risks associated with lump sum disbursal of sanctioned housing
loans and customer suitability issues, the RBI has advised that in case vof housing
projects of private builders-disbursal of housing loan sanctioned to individuals should be
closely linked to the stages of construction of the housing project/houses and upfront
disbursal should not be made in cases of incomplete/under construction/green field
housing projects.
In cases of projects sponsored by Government / Statutory Authorities, loans may be
disbursed 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.
(Amended vide circular no. HO:Retail:19:2013-14:540 dated: 04.09.2013 & HO:Retail: 46:201415:952 dt: 07.03.15)
CLASSIFICATION OF HOUSING LOANS UNDER PRIORITY SECTOR :

Following housing loans shall be eligible under Priority Sector subject to classification
guidelines/ directives issued by RBI from time to time.
a) Loans to individuals up to ` 25.00 Lacs in metropolitan centres with population
above 10.00 Lacs and ` 15.00 Lacs in other centres for purchase/construction of
a dwelling unit per family excluding loans sanctioned to banks own employees.
Page | 42
b) Loans for repairs to the damaged dwelling units of families up to ` 2.00 Lacs in
rural and semi- urban areas and up to ` 5.00 Lacs in urban and metropolitan
areas.
c) Loans granted for construction of a toilet (including inter alia costs of plumbing
and fixtures, etc.) in the house qualify for classification as priority sector
advances within the above limits.
However all staff loans granted to the employees of the bank including loans
granted under consumer banking (home loan granted under general public
scheme) are not to be classified as priority sector.
(Refer circular no. HO:Retail:41:2014-15:792 dated: 30.12.2014)
MIS Code for Housing (Priority Sector) is HSGPS

GENERAL TERMS & CONDITIONS FOR HOUSING LOANS SANCTIONS
1.
2.
3.
4.
5.
6.
7.
8.
9.
For the purpose of title verification, the branch must collect the original / certified
copy of the title deed and give it to the Banks advocate for verification. Under no
circumstances the borrower be allowed to handover the papers directly to the
advocate without the presence of Bank Official. Further, the advocate should be
advised to return the documents alongwith title report directly to the branch.
Cost/Expenses of mortgage, legal costs, cost of other documents & registration
expenses etc. shall be borne by the borrower/s.
Repayment shall be made in accordance with the option exercised by the
borrower.
Disbursement of the loan shall be effected only after all documentation
formalities are completed and all the terms and conditions of the sanction are
complied.
Disbursement of the loan will be effected only by Account Payee Demand Draft
directly in favour of the seller/builder/vendor/co-operative Housing
Society/Government House Building Agency after recovery of the margin under
confirmation of the borrower.
The construction should be exactly according to the approved plan and
specification on the basis of which the advance was sanctioned. Prior
concurrence of the competent authority be obtained for any deviation from
approved plan.
The construction should be completed within stipulated period as defined in
Construction period clause.
The borrower should undertake that during the entire currency of the loan, he /
she / they will maintain the house/flat in good condition at his/her/ their own cost
and keep the same free from all encumbrances, pay all taxes and other statutory
dues and that he/she / they will permit any representative of the Bank to inspect
the property from time to time at the Banks option/discretion with advance
intimation to the borrower.
In case of lease hold property, in addition to the original lease deed lessors
consent must be obtained before mortgage of the property.
Page | 43
10.
As the land in cantonment area belong to the cantonment authority, equitable

mortgage of land in cantonment area is not considered to be a good security and
as such only registered mortgage should be insisted upon.
In case of specified Lal Dora property, in the absence of availability of requisite
documents, under normal circumstances, the loan shall not be considered.
The housing loan interest certificate for income tax purpose has been made
available in the system which can be generated through Finacle DR site by using
option INT-RET RETAILGENINTCERLA.
Amortization schedule can be generated through option LARSH.
11.
12.
13.
PRECAUTIONS TO BE TAKEN FOR PREVENTION OF FRAUDS IN HOME LOAN

ACCOUNTS
Of late, large number of frauds have been reported in advances of housing sector. A
study of behavioral pattern of this indiscretion leads us to believe that in most of the
cases laxity has been exercised in pre/post sanction follow up. With a view to check
prevention of frauds, Pre/Post sanction follow up format has been devised for Home
loans as circulated vide HO circular No. HO/SL& PS/61/04/455 dated 26.03.2004 and
the same are annexed as per Annexure 2&3 respectively.
Branches are advised to adhere to the guidelines strictly.
Before considering a housing loan proposal, sanctioning authority shall ensure the
following.
A. Identification of Borrower
1) An officer shall be deputed to visit residence/work place of the applicant to observe
and report in writing (as per Annexure-2&3) his findings/impression about general
reputation of the applicant at work place/neighborhood by meeting one or two
colleagues/ neighbors etc.
2) Verification of Income Criteria
i) Shall obtain income tax return/Form no.16/financial papers (in case of self
employed) and verify their genuineness by contacting respective authorities.
ii) Shall obtain self-verified Salary Slip preferably cross-verified by
Employer/Superior officer.
iii) Shall obtain Bank statement of business / salary account of the applicant for the
last twelve months and verify its genuineness by calling the bank branch over
phone/by personal visit.
iv) Scrutinize the operations in the statement of account and ensure that applicant
genuinely meets net take home criteria.
v) Shall correlate the above information to ensure genuineness of Income.
B. Verification of Builders reputation
i)
Shall ensure that the vendor builder enjoys a sound reputation in business
circles as per format enclosed (Annexure-2&3). The antecedents and past
track record of the vendor builder should be verified by making local enquiries
from reputed persons/other builders operating in the area.
Page | 44
ii)
Ensure that Demand Draft for housing loan is delivered personally by an

authorized officer to the vendor builder against serially numbered printed
receipt on letterheads of the builder.
iii) Ensure that the Demand Draft on account of housing loan is invariably drawn
as account payee and is collected through the main account of the builders
bank as per our record. (In case demand draft is collected through some other
account of the builder or through an endorsement, branch should be alarmed
that a foul play might be afoot.)
iv) Record the name and account number of the main banker of the builder.
C. Index searching / property verification
For the purpose of title verification, the branch must collect Original /Certified copy of
the title deed and give it to the Banks Advocate for verification. Under no
circumstances, the borrower be allowed to handover the papers directly to the advocate
without the presence of Bank Official.
i)
ii)
iii)
iv)
v)
vi)
Ensure that the index search is not perfunctory by empanelling advocates of

exemplary integrity.
Ensure obtaining affidavit from applicant that he has not obtained loan from
any other bank/FI as per format enclosed.
Ensure that chain of ownership/title of the property is clear and marketable.
Shall invariably read through the index report/ non-encumbrance certificate
issued by the advocate and ensure that the particulars mentioned there in
matches with the particulars as appearing in the title documents.
Ensure that non-encumbrance certificate / index report is not qualified and in
case it is so, then shall obtain papers / documents mentioned in the report.
Shall ensure that search receipt is obtained and placed on record.
Other Precautions
i)
ii)
iii)
iv)
v)
Authenticity / genuineness of the documents of title to property should be

verified from the concerned sub-registrar office by obtaining copy and verifying
stamps of registration and photographs of the owners. Special caution to be
exercised if there are material alterations in amount / names after registration
of sale deeds.
Market value of the property should be verified from adjoining areas while
conducting pre-sanction visit.
Banks lien on the flat should be marked in the record of co-operative house
building societies or permission for mortgage of leased property be obtained
from the concerned urban housing development authority (wherever,
applicable)
The borrowers be called to the branch for signing of loan documents and if this
is not possible then some bank official should visit the place of borrowers and
get the loaning documents executed in his presence.
Strict adherence to the terms and conditions as stipulated in the legal opinion
obtained for creation of valid charge be ensured.
Page | 45
vi)
Due diligence of builder be conducted and a negative list be prepared so as to

aid sanctioning staff that credit facilities are not extended to the venture floated
by the builders with doubtful credentials.
vii) The agreements between landowner and builder or the power of attorney
executed in favour of builder be thoroughly scrutinized and their authenticity be
established before proceeding further.
viii) Special care be observed in case of group borrowers approaching for loans.
ix)
x)
Wherever, concurrent auditors are posted in Branch, they be instructed to

verify housing loan accounts, its documents and on going basis for timely
prevention and detection of fraud.
The physical verification/ inspection of the property be also conducted by
concurrent auditor as per guidelines in vogue.
Additional precautions:
The facility of obtaining scanned-copy of last registered agreement to sale/deed is
available in the office of Sub-registrar of assurances, wherever this facility is available
scanned copy should be obtained and a close scrutiny/comparison be made of the
original agreement to sale/deed handed over by the applicant with this scanned copy
to ensure that there are no variations in placement/fixation of rubber-stamps or in the
signature of the authorized officer of sub-registrar on both copies. In case of slight
variation, branches should be alarmed, as it could be a possible case of cheating.
Empanelled advocates searching Index/title be requested to invariably obtain such
scanned copy.
Besides, Mumbai/Pune wherever this facility is available, it should be made use of to
frustrate the design of scamsters.
The identification / verification as mentioned above shall be recorded in a pre-sanction
visit report as per the format enclosed.
VERIFICATION OF RECORD BY EXTERNAL AGENCY
M/s Matrix Credit Risk Controls Pvt. Ltd. has been empanelled by the bank for
verification of documents viz- addresses / income related documents etc. The detailed
guidelines are mentioned in Circular No. HO: Retail:44:2012-13:812 dated: 28.02.2013.
DUE DILIGENCE OF ACCOUNTS
Due diligence inquiry of borrowers has to be undertaken meticulously at the time of
sanction of housing loan to new borrowers as well as takeover of account from other
banks in line with aforesaid circulars.
Annexure 32 for due diligence of new borrowal accounts as well as accounts to be
taken over from other banks is to be filled and kept with the process note of housing
Loan.
(Amended vide circular no. HO/RT/14/2013-14/331 dated: 30.06.2013)
Page | 46
ISSUANCE OF IN PRINCIPLE SANCTION LETTER

Based upon prevailing practices of Reputed Builders & certain Sellers are asking for
sources of finance from prospective buyer of flat/home before finalising their sale deal.
As such, number of Banks as their marketing strategy for issuing in-principle sanctions
letter/ eligibility letter to the prospective buyer of flat
To meet the market scenario/demand & as a business strategy the Bank also permits
the field functionaries for issuance of such in-principle sanction/ eligibility letters to their
prospective Home Loan borrowers. While issuing such letter the following diligence
aspect be taken due care:
1. Due
Diligence KYC Check
CIBIL Report (charges to be borne by the customer)
Checks
Income Proof/ Returns
Calculation of MPBF, as per our Home Loan scheme
2. Validity
90 days from the date of Issuance of in-principle sanction/
eligibility letters
3. Process
Fee ` 2500/- + ST per letter (irrespective of loan limit)
To be adjusted in Process Fee at the time of regular sanction
(Nonof Home Loan, if applied within the validity period of letter i.e.
Refundable)
90 days.
The above said fees shall be charged irrespective of waiver
of process fee if any.
The in-principle letter shall not be treated as Banks regular sanction rather, the home
loan shall be considered on merits, submission of complete loan proposal & fulfillment
of all norms of the scheme by the applicant. The Bank reserves the right to sanction
or reject any loan proposal without assigning any reason whatsoever.
The model draft in-principle sanction letter is enclosed as an Annexure 33.
(Amended vide circular no. HO:RT:23:2012-13:487 dated: 03.10.2012)
Review Format
As per extant guidelines of Loan Policy, all Term Loans are to be reviewed on regular
basis as regards regularity of repayment of Term Loan installment / interest, adequacy
of cash generation and financial position of the borrower and prevention of slippage of
account to sub-standard category.
All Home Loans shall be reviewed annually on the prescribed format annexed as
Annexure-34.
Page | 47
HOME FURNISHING LOAN

With a view to give leverage to the valued customers to carry out essential alterations or
furnish as per their requirements, the concept of home furnishing loan has been
introduced.
ELIGIBILITY
Individuals having house/flat in his/her name which can be validly charged to the bank
having assured source of income viz. Salaried / self-employed persons, professionals,
businessmen and farmers etc. Staff members shall also be eligible to avail the loan as
applicable to general public (subject to compliance of Staff Housing Loan Scheme)
MAXIMUM ELIGIBLE LOAN AMOUNT
Maximum Loan amount shall be ` 15.00 Lacs subject to following:
1. Loan is restricted upto 75% of the total cost of renovation/furnishing
OR
2. The loan shall be restricted upto 30% of present realizable value of House/Flat
OR
3. If applicant is also availing Housing Loan, the maximum amount shall be
difference between his/her fresh eligibility for home loan minus the existing home
loan outstanding.
Whichever is less
The MPBF shall be calculated as per alternatives given in main Home Loan Scheme as
well as taking into consideration of above three aspects by applying whichever is less
formula.
PURPOSE
Change of flooring Remodeling of bathrooms/kitchen POP work Wood work i.e.
wardrobes / wooden cabinets /doors / windows / grills / gates/ plastering of walls/all
repairs/Removal of structural defects/electric works Painting/polishing of house
DISCRETIONARY POWERS OF FIELD FUNCTIONARIES:
Discretionary powers for home furnishing loan shall be over & above the discretionary
powers vested with the Branch Incumbent/ Regional Head for Housing loan and shall be
linked to the scale of Branch Incumbent as under:
(` in Lacs)
Branch Incumbent
HLCC-ED
RLCC-RH
VII
VI
V
IV
III
II
I
Full
15
5
5
5
5
5
3
2
Page | 48
The Branch Managers are also permitted to sanction (within the power vested with
them) home loan to Directors/Partners of a Company/Firm whose original limits are
sanctioned by Higher Authorities.
RATE OF INTEREST
As applicable under housing loan scheme of the bank.
Particulars
Rate of interest
Base Rate
Interest Free code

Table Code
10
BT633
HL05
Scheme
Code
TL605
Interest shall be calculated at monthly rests and recovered in equated monthly

instalments as per EMI chart. While fixing applicable interest rate for the existing
borrowers, outstanding of existing home loan, if any shall be added to the proposed
loan and interest rate be determined accordingly.
REPAYMENT OF LOAN
Moratorium Period 6 Months. Interest during moratorium period shall be

recovered as and when due.
The repayment shall commence not later than 6 months from the date of first
disbursement. The size of the monthly instalment shall depend on the quantum
of loan and the interest rate applicable. The Equated Monthly Installment (EMI)
shall comprise of principal and interest.
Maximum period of repayment of loan shall be 10 years, which can be extended upto
15 years in certain cases based on merit and keeping in view age/means of
borrower/co-borrower as per the prudent judgment of the sanctioning authority.
Repayment of loan by the agriculturist may be by way of monthly/quarterly/half yearly
instalments so as to commensurate with generation of income cycle.
SECURITY
Registered / equitable mortgage (fresh/extension) of property proposed to be furnished
shall be charged as per the guidelines embodied in main Housing Loan Scheme.
MARGIN
25% of the total cost of the renovation/furnishing as per estimate duly verified by a
qualified architect. To ensure contribution of margin money, borrower will invest the
margin prior to release of loan
PROCESS FEE/DOCUMENTATION CHARGES
Same as per the Home Loan scheme.
Page | 49
MODE OF DISBURSEMENT
The loan amount shall be disbursed on the strength of certificate issued by architect.
Based on this certificate, the loan amount may be credited to borrowers SB Account.
OTHER CONDITION
In the case of applicants, who are availing housing loan from us, the security shall be
the existing properties mortgaged with our bank.
LOANING DOCUMENTS
As stipulated under Home loan scheme.
ORIENTAL PERSONAL LOAN SCHEME FOR HOME LOAN BORROWERS

Particulars
Purpose
Terms & Conditions

A. For purchase of consumer durables, kitchen equipments and
furnishing items such as Television, Refrigerator, Air Conditioner,
Computer, room coolers, curtains, carpets etc. including the
insurance premium of goods purchased under the scheme.
B. For purchase of life insurance cover under group protection plan for
home loan borrower (s) to safeguard their family's future from the
housing loan liability.
C. For any personal use, which is not speculative in nature
Nature
of Term Loan
Facility
Overdraft
Classification Non-Priority Sector
Eligibility
The housing loan should be standard subject to fulfillment of following
conditions:
1. Construction of house completed and mortgage is created.
2. No documentation formalities are pending.
Loan
Amount
Computation
of Eligible
Loan Limit
(Staff members are also allowed to avail the facility subject to fulfillment
of all terms & conditions of scheme)
Minimum ` 1.00 Lac
Maximum ` 5.00 Lacs
OR
10% of sanctioned limit under Housing Loan
Whichever is less.
The loan limit shall be arrived as under:
a) Gross Income of borrower & co-borrower(s) (jointly)
b) Less: Their existing deductions including tax liability
c) Less: EMI/ repayments of other loans including loans which are
under moratorium period, to be factored according to repayment
schedule.
d) Less: The EMI of proposed personal loan (in case of overdraft limit
also)
Page | 50
Security
e) The residual income (take home) of borrower & co-borrower (s)

(jointly) shall not be less than 30% of their gross income mentioned
above at a).
Field functionaries should endeavour to extend the charge on the
mortgage of the house to mitigate risk. In case the same is not done,
reasons should be provided and irrevocable and duly stamped
undertaking should be obtained from the borrower with regard to
following:
The bank can extend mortgage as and when required.

The borrower will not create any other charge on the aforesaid
residential property during the currency of the Personal Loan
Title deed of the aforesaid residential property shall remain with the
bank till personal loan is repaid
Margin
25% (In case of purchase of Consumer Durables and Insurance premium).
Rate
of Floating rate of interest with monthly rest
interest
For Male Borrowers
BR + 1.50%
Term Loan
For female Borrowers
BR + 1.00%
For
Male
Borrowers
BR + 1.50%
Overdraft
Limit
For female Borrowers
BR + 1.00%
In case loan is availed jointly by male & female borrower, BR+1.50%
rate of interest shall be charged.
Penal
2% penal interest over the normal lending interest rates on the overdue
Interest
amount for irregular period.
Pre-payment No prepayment penalty to be charged
Penalty
Process/
0.50% of loan amount subject to minimum of ` 500/- plus service
upfront fee
tax, if any (in case of Overdraft limit and Term loan, One time fees).
The process fee shall not be recovered from staff/ex-staff members.
Rating Model The IMaCs rating model used for personal loans be used under the
said scheme.
Disbursement 1. In case of purchase of life insurance cover under group protection
plan for securing housing loan liability, the loan shall be released in
favour of the respective insurance company.
2. In case of term loan, amount will be credited in operative account of
borrower.
3. In case of purchase of consumer durable and other items, invoice of
the items purchased shall be obtained.
Repayment
Upto 60 EMIs, subject to maximum repayment age of 70 years*.
Overdraft limit will be renewed on yearly basis.
Note*:
For salaried (with pension) & Upto 70 years
other Individuals
For
Salaried
(Non Upto 60 years or superannuation,
Pensionable)
which is earlier
Page | 51
Discretionary
Powers
a. General
Public
b. Staff
Deviation
Authority
General
Conditions:
MIS Codes
Sanctioning Authority
Discretionary powers
RLCC
` 5.00 Lacs
BM Scale IV & above
` 5.00 Lacs
BM Scale II & III
` 3.00 Lacs
BM Scale I
` 2.00 Lacs
Place of posting of the employee availing Sanctioning
the Loan
Authority
All Branches/RO (other than RH)/Service RLCC-RH
Branch/STC (other than STC, Noida) /
Currency Chest / COPEC / Data Centre/
Stationary
Godown
(Except
stationary
Godown
at
Faridabad)
/
Regional
Inspectorates (other than RI Heads)
All Staff posted at Head Office/Stationary HLCC-ED
Godown at Faridabad/STC, Noida/ Regional
Heads and Regional Inspectorate Heads
HLCC-ED
The CIBIL report be extracted in each case (Cost be borne by the
party) and analyzed for taking prudent decision while considering
personal loan proposal.
Note:
Loan proposals of Staff members shall be exempted from CIBIL check.
Scheme Int Tbl
Free
Advance Applicable ROI
for
Code
Code
code 10
type
For Male BR
+ TL677
BL150
CL16
Borrowers 1.50%
Term
For
BR
+ TL677
BL100
CL16
Loan
female
1.00%
Borrowers
For Male BR
+ OD501
BG150
CL16
Borrowers 1.50%
Overdraft
For
BR
+ OD501
BG100
CL16
Limit
female
1.00%
Borrowers
Page | 52
LIST OF DOCUMENTS TO BE OBTAINED ALONG WITH LOAN APPLICATION

The following list containing a model of papers / documents required which can
vary from case to case and additional documents be obtained, wherever required.
i.
ii
iii
iv
v
vi
vii
Loan application Form-cum-process note LF-2

Passport size photograph of applicant, co applicant & guarantor with specimen
Signature on the front and back of the photograph
Identity / Residence / Age Proof viz- photo copy of valid passport / driving license
/ birth Certificate / school leaving certificate / pan card / voter ID card / ration card
/ Aadhar card etc.
Bank Statement: Copy of bank account statement for last 12 months
i. Where salary is credited , for salaried applicants
ii. Saving as well as current accounts, if any for self employed
applicants.
Income Proof1. For Salaried: Salary certificate issued by the employer / Income Tax return
2. For Agriculturist: Record of land holding & cropping pattern or any other
proof of income.
3. For all other individuals: Last 2 yrs. Income Tax Return & computation
sheet
Property documents : Title clearance report from advocate and valuation report
from architect on Bank's panel
In case of takeover of loan, copy of home loan account statement for the entire
period shall be obtained. A certificate shall also be obtained from the lending
institution providing pre-closure amount.
Affidavit as per Annexure 5
Any other document/paper which may be necessary as per requirement of the

case.
In case of Employed Person:

i.
ii.
iii.
iv.
v
vi
Latest salary slip/certificate duly authenticated by employer

Proof of Dividend/Interest/other Income (to be specified)
If job is transferable, details of permanent address where all communication can
be done.
An undertaking from the employer to deduct the monthly instalment from the
salary towards repayment of loan (As per Bank format). This undertaking be
obtained wherever possible and in case the employed person is not in a position
to furnish the same, reason for the same be recorded.
Latest Income Tax Return wherever applicable
Detail of occupation (in case employed for less than 3 years in present
employment, detail of previous occupation as well.
Page | 53
vii
The details of employee from employers be obtained including employers ID/PF

number, permanent address, date of joining, retirement etc. besides other
details.
In case of Self-Employed :
i)
ii)
Financial statements along with copies of Individual Income Tax Returns of tax
payee for the last 2 years (self certified). Copies of last two assessments shall
also be insisted upon. It must be ensured that two IT returns not to be filed
together. However, copies of Income tax returns are not to be obtained for loans
upto `. 2.00 Lacs. (Amended vide circular letter no. HO: Retail:11:2014-15
dated: 29.12.2014)
A note on nature of business/profession, clientele etc. to be provided with future
business prospects available.
In case of Farmers and other Rural Borrowers :

i)
ii)
iii)
iv)
v)
1.
Co-operative Book in case of Milkmen

Land holding revenue record proof like, 7/12, Fard / Jamabandi / khatoni / land
passbook as applicable in respective states.
In case of farmers whose loan amount does not exceed `.2.00 lac, self-drawn
copy of drawings / cost estimates required.
Where no title deeds are available, local advocate should be consulted to find out
whether duplicable of documents of grant / SANAD can be obtained or
alternatively release deed: family settlement/partition deed can be obtained for
creation of valid registered / equitable mortgage.
Details of income from farming / allied activities and any other activity (to be
specified)
Free Hold Land:
i)
ii)
Copies of Agreement to sell/ Sale Deed in favour of the borrower.

Legal opinion cum search certificate/chain of Title Deeds (for minimum last 13
years), if any, in respect of property to be mortgaged.
iii) Copy of Possession letter.
iv) Copy of Approved Drawings/Site plan of proposed construction issued by the
competent authority.
v) Estimate of proposed construction from an Architect.
vi) Proof of advance payments made, if any, by the borrower to the seller for
purchase of the plot / house.
2.
Land Allotted by DDA/Govt. Authority viz. HUDA,PUDA,MAHADA, Noida,

Greater Noida, GDA etc.:
i) Copy of allotment Letter in favour of the borrower/seller/allottee.
ii) Copy of Possession letter.
Page | 54
iii) Permission from and/or Intimation given to the Allotment Authority to create
charge over the said plot / for creating a mortgage in favour of the bank duly
acknowledged as received by Allotment Authority.
iv) Copies of Receipts of advance Payments made by allottee and/or borrower, as
the case may be.
v) Copy of Approved Drawings/Site Plans of proposed construction issued by the
vi) Estimate of proposed construction from an Architect.
vii) Legal opinion cum search certificate/chain of Title Deeds (for minimum last
13years, subsequent to date of original allotment, if any, in respect of land to
be mortgaged in Original.
3.
Plot purchased /Sub leased from Co- operative Housing Societies as

member:
i) Copy of Share certificate issued to the borrower by the society.
ii) Copy of Registered Sale / Sub lease deed in favour of the borrower.
iii) Copy of Possession letter.
iv) Legal opinion cum search certificate/chain of Title Deeds, (for minimum last
13 years), if any, in respect of land to be mortgaged.
v) Permission to mortgage in favour of bank / its security trustee from the
appropriate authority such as DDA, NOIDA, GREATER NOIDA, GDA etc
vi) No objection certificate from the Society .
vii) Proof of advance payments made to the society till date.
viii) Copy of Approved Drawings/Site Plans of proposed construction issued by
ix) Estimate of proposed construction from an Architect.
Additional documents to be submitted in cases when the plot/house is
acquired by way of RE-SALE / GIFT / TRANSFER.
i) Copies of complete correspondence with respect to the Transfer permission
from Govt. Authority viz. HUDA etc.
ii) Copies of Previous Conveyance Deeds / Transfer permissions.
iii) Copy of transfer deed in favour of the borrower stamped and registered with
Govt. Authority viz. HUDA etc.
iv) Proof of payments in respect of stamp duty / applicable taxes, etc.
4.
Purchase of flat from Delhi Development Authority (DDA)

i) Copy of Allotment / allocation letter issued by DDA. The terms of allotment
attached to it should also be submitted.
ii) Copies of all challans for payments made to DDA in original.
iii) Copy of registered deed (wherever applicable).
In case of RE-SALE OF A FREE HOLD FLAT, all the above-mentioned documents

must be submitted along with:
i)
Copy of Stamped and Registered conveyance deed between the seller and
borrower in original.
Page | 55
ii)
Copies of receipt for the advance payments made to the seller till date.
Margin has to be brought in and paid to the seller equivalent to the
agreement value less the bank loan before the bank disburses the loan
amount in part or in full.
iii) Copies of previous Conveyance Deeds/Transfer permissions, if any.
5.
Purchase of flat from Development Authorities of various cities, Housing

Boards, Improvement Trust, GDA, NOIDA, GREATER NOIDA, etc.
i)
Copy of Allotment/allocation letter issued by the Housing Development

Authority.
ii) Copy of Possession letter.
iii) Copy of Stamped and registered conveyance deed
iv) Permission from concerned Housing Development Authority to mortgage the
plot in favour of bank.
v) Non encumbrance certificate from Housing Development Authority.
vi) Copies of Receipts/Proof of the advance payments made to Housing
Development Authority till date.
In case of these flats being sold in resale, all the above-mentioned
documents must be submitted along with:
i) Copy of Stamped and registered conveyance deed between the seller and
the borrower, if any.
ii) Copies of receipts for the advance payments made by the borrower to the
seller till date.
iii) Permission to mortgage in favour of the Bank.
iv) Copies of Previous Conveyance Deeds/Transfer permissions, if any.
6.
Purchase of flat / Portion from BUILDER

i) Copy of stamped agreement of borrower with the builder. Copies of Receipts
/ Proof of the advance payments made by original allottee and complete
chain of documents till date.
ii) Copies of Original receipts for advance payments made by borrower to the
builder.
iii) Copy of approved plan and sanction letter from the concerned authority
issued by the competent authority.
In case of these flats being sold in resale:Case 1: The seller has a registered sale deed in his favour.
In this case the borrower, in addition to aforesaid documents as the case may be,
is required to submit: i) Copy of stamped and registered original sale deed between the builder and
the seller, who sold the said property/plot to the said builder.
Page | 56
Case 2: The seller has only an agreement to sell between him and the builder.
In this case the borrower, in addition to aforesaid documents as the case may be,
must submit:
i) Copy of stamped sale agreement between the seller of the plot/property and
the borrower and/or an undertaking to deposit the same, in original with the
bank as and when the same is ready.
7.
Flat acquired as a member of a coop. group housing society.

i) Copy of share certificate issued to the borrower by the society.
ii) Copy of all receipts for the advance payments made by the borrower to the
society.
iii) No objection certificates from the society on its letterhead.
iv) Certificate from the society in respect of the cost of the flat along with the
schedule of payments.
v) Copy of the bye laws of the society.
vi) Copy of the lease deed in the name of the society.
vii) Copy of the approved plan issued by the competent authority.
In case these flats/portions being sold in resale, all the above-mentioned

documents must be submitted along with
i)
ii)
Copy of transfer of share certificate in the borrowers favour.

Copy of chain of Title Deeds, if any, in respect of property to be mortgaged in
Original.
LIST OF LOANING DOCUMENTS TO BE OBTAINED BEFORE DISBURSEMENT OF

LOAN
COMMON SECURITY DOCUMENTS
1)
2)
3)
4)
5)
6)
Agreement for Home Loan as per Annexure-4 (Doc 48)

Common agreement i.e. DOC 38
Affidavit as per Annexure 5
Power of Attorney as per Annexure 6
Intention to create mortgage as per Annexure-14
Memorandum of deposit of title deeds alongwith original title deeds, nonencumbrance certificate, search receipt and other papers related to title of
property.
7) Agreement of guarantee i.e. DOC-11 wherever applicable
8) In case loan is allowed against registered mortgage of property, mortgage deed as
per Annexure 19 to be got registered with sub-registrar.
9) The mandate for recovery of installment by way of ECS/NACH/SI /NEFT/ Auto
recovery from existing accounts from the borrower shall be obtained and kept on
record as per Annexure 8
10) In case Home Loan is allowed against second charge / parri-passu charge over
the property, documents as per 20to25 to be obtained.
Page | 57
DETAIL OF DOCUMENTS TO BE OBTAINED FOR CREATION OF MORTGAGE /

CHARGE IN CASE OF BORROWERS FALLING UNDER FOLLOWING
CATEGORIES:
1. Free Hold Land:
Agreement to sell and Sale Deed in favour of the borrower in Original
1) Copy of chain of Title Deeds (for minimum last 13 years), if any, in respect of
property to be mortgaged. Last deed, in original, must be obtained.
2) Search Fee Receipt and Title Clearance Certificate from Banks approved
advocate.
3) Possession letter in original.
4) Original Approved Drawings/Site plan of proposed construction issued by the
5) Original proof of advance payments made, if any, by the borrower to the seller for
purchase of the plot / house.
6) Stamped undertaking from the borrower stating that FORM-D or similar other
document/completion certificate shall be given to the bank as and when received
by him (Annexure-14).
7) In case original sale deed is lying with Sub-Registrar, the memorandum to create
registered / equitable mortgage be got registered with Registrar of Assurances,
wherever applicable to strengthen Banks security, since it attracts nominal
charges subject to State Local Laws.
2. Land Allotted by DDA/Govt. Authority viz. Noida, Greater Noida, GDA etc.:
1. Allotment Letter in favour of the borrower/seller/allottee in Original.
2. Possession letter in Original.
3. Permission from and/or Intimation given to the Allotment Authority to create
charge over the said plot / for creating a mortgage in favour of the bank duly
acknowledged as received by Allotment Authority.
4. Original Receipts of advance Payments made by allottee and/or borrower, as the
case may be.
5. Original Approved Drawings/Site Plans of proposed construction issued by the
6. Copy of chain of Title Deeds (for minimum last 13years, subsequent to date of
original allotment, if any, in respect of land to be mortgaged in Original.
7. Search Fee Receipt and Title Clearance Certificate from Banks approved
advocate.
8. Memorandum for creation of registered / equitable mortgage be got registered
which attracts nominal charges applicable subject to State Local Laws.
9. Stamped undertaking from the borrower stating that FORM-D or similar other
3. Plot purchased /Sub leased from Co- operative Housing Societies as member :
1.
2.
3.
4.
Share certificate issued to the borrower by the society in original.

Registered Sale / Sub lease deed in favour of the borrower in original.
Possession letter in original.
Copy of chain of Title Deeds, (for minimum last 13 years), if any, in respect of
land to be mortgaged.
Page | 58
5. Permission to mortgage in favour of bank / its security trustee from the

appropriate authority such as DDA, NOIDA, GREATER NOIDA, GDA etc
6. No objection certificate from the Society.
7. Proof of advance payments made to the society till date.
8. Copy of Approved Drawings/Site Plans of proposed construction issued by
9. Search Fee Receipt and Title Clearance Certificate from Banks approved
advocate.
4. House Constructed on plot allotted by Haryana Urban Development Authority
(HUDA).
1.
2.
3.
4.
5.
6.
7.
8.
Allotment letter in original.

Stamped and registered conveyance deed in original.
Permission from HUDA to mortgage the plot in favour of bank.
Non encumbrance certificate from HUDA.
Original Receipts/Proof of the advance payments made to HUDA till date.
DPC/ROOF level certificate from the HUDA.
Search Fee Receipt and Title Clearance Certificate from Banks approved
advocate.
10. Copy of Approved Drawings/Site Plans of proposed construction issued by
11. Re-allotment letter in favour of the borrower.
Additional documents to be submitted in cases when the plot/house is acquired
by way of RE-SALE / GIFT / TRANSFER.
i)
ii)
iii)
iv)
Complete correspondence with respect to the Transfer permission from

HUDA in original.
Previous Conveyance Deeds / Transfer permissions in Original, if any.
Transfer deed in original in favour of the borrower stamped and registered
with HUDA.
Proof of payments in respect of stamp duty / applicable taxes, etc.
If a conveyance deed between HUDA and the seller has been executed, then sale /
conveyance deed shall be executed by the seller in favour of the borrower after
obtaining the permission for transfer of property from HUDA.
Page | 59
If no conveyance deed between HUDA and the seller has been executed, then the
borrower will get the sale / conveyance deed executed from HUDA after getting the
transfer permission from HUDA and an agreement to sell with the seller.
5. Purchase of flat from Delhi Development Authority (DDA)
1. Allotment / allocation letter issued by DDA in original. The terms of allotment
attached to it should also be submitted.
2. All challans for payments made to DDA in original.
3. Permission from and/or Intimation given to, the DDA to create charge over the
said flat / for creating a mortgage in favour of the bank duly acknowledged as
received by DDA (Annexure-12)
4. The original registered deed (wherever applicable).
5. Stamped undertaking from Borrower to handover the possession letter and
conveyance deed as and when the same is received from the DDA.
6. Search fee receipt and title clearance from Banks approved advocate.
In case of RE-SALE OF A FREE HOLD FLAT, all the above-mentioned documents
i)
Stamped and Registered conveyance deed between the seller and borrower
in original.
ii) Original receipt for the advance payments made to the seller till date. Margin
has to be brought in and paid to the seller equivalent to the agreement value
less the bank loan before the bank disburses the loan amount in part or in full.
iii) Search fee receipt and title clearance from Banks approved advocate for the
last 13 years in detail indicating the chain of ownership and encumbrances, if
any.
iv) Previous Conveyance Deeds/Transfer permissions in Original, if any.
6. Purchase of flat from Development Authorities of various cities, Housing
Boards, Improvement Trust, GDA, NOIDA, GREATER NOIDA, etc
i)
ii)
iii)
iv)
v)
Allotment/allocation letter issued by the Housing Development Authority in

original.
Stamped and registered conveyance deed in original or Stamped
undertaking from the borrower to hand over possession letter and
conveyance deed as and when it is received by him (Annexure-14).
Permission from concerned Housing Development Authority to mortgage
the plot in favour of bank.
Non encumbrance certificate from Housing Development Authority.
Page | 60
vi)
vii)
viii)
ix)
Original Receipts/Proof of the advance payments made to Housing

Development Authority till date.
DPC/ROOF level certificate, if any from the Housing Development Authority.
advocate.
Memorandum for creation of registered / equitable mortgage be got
registered which attracts nominal charges applicable subject to State Local
Laws.
In case of these flats being sold in resale, all the above-mentioned documents
1. Stamped and registered conveyance deed between the seller and the borrower
in original, if any.
2. Original receipts for the advance payments made by the borrower to the seller till
date.
3. Permission to mortgage in favour of the Bank.
4. Search fee receipt and title clearance report from Banks approved advocate.
5. Previous Conveyance Deeds/Transfer permissions in Original, if any.
7. Purchase of flat / Portion from BUILDER

1. Tripartite Agreement (Annexure-17)
2. Original stamped agreement of borrower with the builder. Original Receipts /
Proof of the advance payments made by original allottee and complete chain of
documents till date in Original.
3. Stamped undertaking from the borrower to hand over possession letter and
conveyance deed as and when it is received by him (Annexure-14).
4. Original receipts for advance payments made by borrower to the builder.
5. No objection certificate in respect of borrowers right to mortgage the flat/portion
being purchased by the borrower, from the builder on his letter head (Annexure15)), to our bank and if required Permission from concerned Authority to
mortgage in favour of bank.
6. Approved plan and sanction letter from the concerned authority issued by the
7. Advocates title report for the last 13 years in detail indicating the chain of
ownership and encumbrances if any, on the plot which should be available
stating the cost of the flat / house, type, schedule of payments, etc.
In case of these flats being sold in resale:Case 1:
The seller has a registered sale deed in his favour.
In this case the borrower, in addition to aforesaid documents as the case may be, is
required to submit: -
Page | 61
1. Stamped and registered original sale deed between the builder and the seller,
who sold the said property/plot to the said builder.
2. Stamped and registered sale agreement/conveyance deed between the seller of
the said property/plot and the borrower in original as and when executed.
ownership, along with original documents, and encumbrances, if any, on the
plot/property/flat/portion, which should be available with builder.
Case 2:
builder.
The seller has only an agreement to sell between him and the
1. In this case the borrower, in addition to aforesaid documents as the case may be,
must submit:
2. The original stamped sale agreement between the seller of the plot/property and
the borrower and/or an undertaking to deposit the same, in original with the bank
as and when the same is ready.
3. Stamped and registered conveyance deed between the builder and the borrower
in original as and when executed. Since no sale deed was made between the
builder and the seller the transfer takes place between the builder as an attorney
of the seller and the borrower.
4. Letter from the builder on his letter head (Annexure-16).
ownership, along with original documents, and encumbrances, if any, on the
plot/property/flat/portion, which should be available with builder.
8. Flat acquired as a member of a coop. group housing society.
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
xi)
Tripartite Agreement (Annexure-18).

Share certificate issued to the borrower by the society in original.
All receipts for the advance payments made by the borrower to the society in
original.
No objection certificates from the society on its letter head (Annexure-13).
Certificate from the society in respect of the cost of the flat along with the
schedule of payments.
Copy of the bye laws of the society.
Copy of the lease deed in the name of the society.
Copy of the approved plan issued by the competent authority.
Stamped undertaking from the borrower to hand over the possession letter
and the conveyance deed/lease deed as and when received by him
(Annexure-14).
Letter of declaration by the society that the said flat is not subject to any
charge or lien to any bank / financial institution /authority and society has not
raise any loan against the said flat. (Annexure-13).
Memorandum for creation of registered / equitable mortgage be got
registered which attracts nominal charges applicable subject to State Local
Laws.
In case these flats/portions being sold in resale, all the above-mentioned

documents must be submitted along with
i)
Transfer of share certificate in the borrowers favour in original
Page | 62
ii)
iii)
iv)
Stamped undertaking from the borrower for submission of conveyance deed

to our bank as and when received by him.
Original receipts issued by the seller for the payments received by him from
the borrower.
Legal opinion cum search certificate/chain of Title Deeds, if any, in respect of
property to be mortgaged in Original.
9. Purchase of Flat/House from AWHO (Army Welfare Housing Organization)

i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
Allotment/allocation letter issued by AWHO

Copy of building plan
Where the construction of flat/house is not completed tripartite agreement is
to be taken.
Possession letter in original or stamped undertaking from the borrower to
hand over possession when it is received by him
Stamped and registered conveyance deed in original or Stamped undertaking
from the borrower to hand over the conveyance deed as and when it is
received by him.
Permission from AWHO to mortgage the flat/house in favour of bank.
Non encumbrance certificate from AWHO
Original Receipts/Proof of the advance payments made to AWHO
advocate.
Memorandum for creation of registered / equitable mortgage be got registered
In case the flat/house is being sold in re-sale following documents are required:
i)
ii)
iii)
iv)
v)
vi)
vii)
viii)
ix)
x)
Allotment/allocation letter issued by AWHO to the original allottee.

Possession Letter in original
Copy of building plan
Permission from AWHO for sale and purchase
Permission from AWHO for mortgage of the flat/house in favour of the Bank
Previous title deeds/chain of Title Deeds
Non-encumbrance certificate from AWHO
advocate.
Memorandum for creation of registered / equitable mortgage be got registered
Stamped and registered conveyance deed in original or Stamped undertaking
from the borrower to hand over the conveyance deed as and when it is
received by him.
All inspecting officials from the inspection and Control department at Head office as well as
Regional Inspectorates should verify the compliance of the above during their visits to
Branches /Regional Offices.
Page | 63
Annexure-I
Comprehensive chart of EMI on applicable interest rate for loan of `. 100,000/- with zero moratorium period.
ROI
4yr.
5yr.
6yr.
7yr.
8yr.
9yr.
10yr.
11yr.
12yr. 13yr.
14yr.
15yr.
16yr.
17yr.
18yr.
19yr.
20yr.
21yr.
22yr.
23yr.
24yr.
25yr.
26yr.
27yr.
28yr.
29yr.
30yr.
8.00%
2441
2028
1753
1559
1414
1302
1213
1142
8.25%
2453
2040
1766
1571
1426
1315
1227
1155
1082 1033
991
956
925
898
875
855
836
820
806
793
782
772
763
754
747
747
734
1096 1047
1006
970
940
913
890
870
852
836
822
810
798
788
779
771
764
764
8.50%
2465
2052
1778
1584
1439
1328
1240
751
1169
1110 1061
1020
985
954
928
905
885
868
852
838
826
815
805
796
788
781
781
769
8.75%
2477
2064
1790
1596
1452
1341
9.00%
2489
2076
1803
1609
1465
1354
1253
1182
1124 1075
1034
999
969
943
921
901
884
868
855
843
832
822
813
806
799
799
787
1267
1196
1138 1090
1049
1014
985
959
936
917
900
885
871
859
849
839
831
823
816
816
9.25%
2500
2088
1815
1622
1478
805
1368
1280
1210
1152 1104
1064
1029
1000
974
952
933
916
901
888
876
866
856
848
841
834
834
9.50%
2512
2100
1827
1634
823
1491
1381
1294
1224
1166 1119
1078
1044
1015
990
968
949
932
917
904
893
883
874
866
858
852
852
841
9.75%
2524
2112
1840
1647
1504
1394
1308
1238
1181 1133
1093
1059
1030
1005
984
965
949
934
921
910
900
891
883
876
870
870
859
10.00%
2536
2125
1853
1660
1517
1408
1322
1252
1195 1148
1108
1075
1046
1021
1000
981
965
951
938
927
917
909
901
894
888
888
878
10.25%
2548
2137
1865
1673
1531
1421
1335
1266
1210 1163
1123
1090
1062
1037
1016
998
982
968
955
944
935
926
919
912
906
906
896
10.50%
2560
2149
1878
1686
1544
1435
1349
1280
1224 1178
1138
1105
1077
1053
1032
1014
998
985
973
962
952
944
937
930
925
925
915
10.75%
2572
2162
1891
1699
1557
1449
1363
1295
1239 1192
1154
1121
1093
1069
1049
1031
1015
1002
990
979
970
962
955
949
943
943
933
11.00%
2585
2174
1903
1712
1571
1463
1378
1309
1254 1208
1169
1137
1109
1085
1065
1047
1032
1019
1007
997
988
11.25%
2597
2187
1916
1725
1584
1476
1392
1324
1268 1223
1185
1152
1125
1102
1082
1064
1049
1036
1025
1015
1006
998
11.50%
2609
2199
1929
1739
1598
1490
1406
1338
1283 1238
1200
1168
1141
1118
1098
1081
1066
1054
1042
1033
1024
1016
11.75%
2621
2212
1942
1752
1612
1504
1420
1353
1298 1253
1216
1184
1157
1135
1115
1098
1084
1071
1060
1051
1042
1035
12.00%
2633
2224
1955
1765
1625
1518
1435
1368
1313 1269
1231
1200
1174
1151
1132
1115
1101
1089
1078
1069
1060
12.25%
2646
2237
1968
1779
1639
1533
1449
1383
1329 1284
1247
1216
1190
1168
1149
1133
1119
1106
1096
1087
1079
12.50%
2658
2250
1981
1792
1653
1547
1464
1398
1344 1300
1263
1233
1207
1185
1166
1150
1136
1124
1114
1105
12.75%
2670
2263
1994
1806
1667
1561
1478
1413
1359 1315
1279
1249
1223
1202
1183
1167
1154
1142
1132
13.00%
2683
2275
2007
1819
1681
1575
1493
1428
1375 1331
1295
1265
1240
1219
1200
1185
1172
1160
1150
13.25%
2695
2288
2021
1833
1695
1590
1508
1443
1390 1347
1311
1282
1257
1236
1218
1203
1189
1178
13.50%
2708
2301
2034
1846
1709
1604
1523
1458
1406 1363
1328
1298
1274
1253
1235
1220
1207
13.75%
2720
2314
2047
1860
1723
1619
1538
1473
1421 1379
1344
1315
1291
1270
1253
1238
1225
14.00%
2733
2327
2061
1874
1737
1633
1553
1489
1437 1395
1360
1332
1308
1287
1270
1256
14.25%
2745
2340
2074
1888
1751
1648
1568
1504
1453 1411
1377
1349
1325
1305
1288
14.50%
2758
2353
2087
1902
1766
1663
1583
1520
1469 1428
1394
1366
1342
1322
1306
14.75%
2770
2366
2101
1916
1780
1678
1598
1535
1485 1444
1410
1383
1359
1340
15.00%
2783
2379
2115
1930
1795
1692
1613
1551
1501 1460
1427
1400
1377
15.25%
2796
2392
2128
1944
1809
1707
1629
1567
1517 1477
1444
1417
1394
15.50%
2808
2405
2142
1958
1824
1722
1644
1582
1533 1493
1461
1434
15.75%
2821
2419
2155
1972
1838
1737
1660
1598
1549 1510
1478
16.00%
2834
2432
2169
1986
1853
1753
1675
1614
1566 1527
1495
967
961
961
952
991
985
980
980
971
1010
1004
999
999
990
1028
1023
1018
1018
1009
1053
1047
1041
1037
1037
1029
1072
1066
1060
1056
1056
1048
1097
1090
1084
1079
1075
1075
1067
1123
1116
1109
1103
1098
1094
1094
1087
1142
1134
1128
1122
1117
1113
1113
1106
1169
1160
1153
1147
1141
1137
1132
1132
1126
1196
1187
1179
1172
1166
1160
1156
1152
1152
1145
1215
1205
1197
1191
1185
1180
1175
1171
1171
1165
1244
1233
1224
1216
1210
1204
1199
1195
1191
1191
1185
1274
1262
1251
1243
1235
1229
1223
1218
1214
1210
1210
1205
1292
1280
1270
1261
1254
1248
1242
1238
1234
1230
1230
1225
1324
1310
1298
1288
1280
1273
1267
1261
1257
1253
1250
1250
1244
1358
1342
1328
1317
1307
1299
1292
1286
1281
1276
1273
1270
1270
1264
1375
1360
1346
1335
1326
1318
1311
1305
1300
1296
1292
1289
1289
1284
1412
1393
1378
1365
1354
1345
1337
1330
1325
1320
1316
1312
1309
1309
1305
1451
1429
1411
1396
1383
1373
1364
1356
1349
1344
1339
1335
1332
1329
1329
1325
1469
1447
1429
1414
1402
1391
1382
1375
1369
1363
1359
1355
1352
1349
1349
1345
Page | 64
980
973
Annexure -2
Format of Pre - Sanction Visit
Name of the Branch
Name of the Visiting Officer
Name of the applicant
Amount of Loan Applied For
Identification of applicant
1. Have you visited the present residence of the applicant?
2. Date of visit
:
Address & Phone no.
:
Yes/No
3. Have you visited the work place of applicant?

Date of visit
:
Address & Phone no.
:
Yes/No
4. Have you visited the proposed Site/Flat/House

5. Dates of visit
Address:
Yes/No
6. Present stage of construction:

7. Did you call on his immediate superior/
colleague for courtesy?
Yes/No
Name of the person contacted _____________

(In case of person in service) Designation: _________________
What is your impression about general reputation of applicant
borrower?
8. Did you meet two/three persons in neighborhood to form your opinion?

(In case of self-employed persons)
Name of the person contacted with their address______________.
Is the applicant living in a reputable locality?
(If not, then the credit decision should be taken with utmost caution).
Yes/No
Yes/No
9. Have you obtained bank account statement for last 12 months

(Name of the Bank_________Branch_________)
Yes/No
10. Have you verified its genuineness from bank
Yes/No
11. Does the balances/inflow/outflow of funds indicate

that applicant is reasonably liquid to service the
proposed loan? (Attach separate sheet)
12. Record your own observation/impression about the
life-style/general reputation/integrity and repaying
capacity. (Attach separate sheet)
Page | 65
13. What is the numerical order of flats arranged by the builders

(For example like A-1, 101, 001 or G-1 etc.)
Is the flat no. indicated in agreement to sale/deed
matches with the above chronology.
If no, reasons thereof:
Reputation & Integrity of Builder
Yes/No
1.
2.
3.
Name of the Builder

:
Name of Promoter
:
Brief Information about Previously completed projects be obtained through local
enquiries and recorded :
4.
Is the builder/developer a member of the association/body of builders generally

operative in area/city?
Yes / No
Name of the association _______________
President ___________________________
Secretary ___________________________
(Please obtain a list of members from the office of association and cross-check the
credentials
of the builder from reputed persons)
What is the reported general reputation of the builders?
Names of the main bankers of the builders.

Name of the bank ________________Branch___________________
Title of the account ______________Account no. ________________
Whether the applicant has deposited advance

Yes/No
money with the Builder
If Yes, Please ensure the genuineness of advance money deposited
Index scrutiny by empanelled advocate

Branches must avoid perfunctory scrutiny. Advocates of high-caliber and good
reputation be only engaged since their report forms the very basis of creation of security
to bank and credit-decision.
i) Have you obtained the scanned copy of last registered
Yes/No
Agreement/Sale Deed from the office of the Sub-Registrar.
ii)
If not, Reason for not obtaining the scanned copy
iii)
If Yes,
a) Have you matched scanned copy with the Agreement/
Sale deed as produced by the applicant.
b) Do you find both the copies identical, particularly the
back page which is stamped by the office of the
Sub-Registrar (If not, then branch should be
alarmed that some foul play may be afoot)
(Signature)
Name of the Loan Officer
Yes/No
Yes/No
(Signature)
Branch Incumbent
Page | 66
Annexure -3
Format of Post sanction follow-up
i) Have you ensured that the housing loan Demand draft
has been crossed as A/C Payee.
Yes/No
ii) Have you ensured that demand draft has been delivered
in the office of the builder by a responsible officer of
Bank against receipt.
Yes/No
iii) Have you ensured that the demand draft has been presented for payment
through clearing house from the main A/C of the Builder as per our record.
Branches shall ensure that it is collected only through the bank where builder is
maintaining its account. (If not, branches should be alarmed and payment be
denied taking the presenting bank into confidence)
Yes/No
Charging of the Primary/Collateral Security
1.
2.
3.
Date of Creation of charge/ registered / equitable mortgage _________.

Page no. of short recital register ________.
The basis of creating registered / equitable mortgage be furnished.
(a) Whether the complete chain of original title deeds of the property has
been taken (if not, record reasons)
Yes/No
(b) Whether all the formalities stated in Non-Encumbrance certificate has
been complied with.
Yes/No
(c) Date of Memorandum of Deposit of title deeds_______.Occupancy
status of the house/flat:
Whether our Banks lien/charge has been noted with Society

Whether confirmation letter has been obtained from the Society
I)
Date of Noting Lien/charge________.
II) Date of Confirmation letter of the society___________.
4.
5.
6.
7.
8.
Whether permission from the lessor has been obtained

(In case of lease property)
Whether details of the property mentioned in the last
tittle deed tally with the details as mentioned in present
agreement/ sale deed.
Has the tittle deed been collected & placed on records.
If not, reasons thereof and likely date of its obtention.
Whether the valuation of the property (as shown in the
Valuation report) is reasonable as per the present market
rate.
(Signature)
Name of the Loan Officer
Date _________
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
Yes/No
(Signature)
Branch Incumbent
Page | 67
ANNEXURE-4 (Loan doc -48)
To be stamped as agreement (Not to be (To be pasted only)

witnessed)
Photograph of the borrower
to be signed across the
photo by the Borrower as
well as by the Manager /
Sr. Manager / Chief
Manager/Assistant General
Manager.
AGREEMENT FOR INDIVIDUAL HOUSING LOAN
This
agreement
is
made
at
on
this
.
day
of
20.between Oriental Bank of Commerce, a body corporate constituted
under the Banking Companies (Acquisition & Transfer of undertakings) Act No.40 of
1980 having its Head Office at E-Block, Harsha Bhawan, Connaught Place, New Delhi110
001
and
amongst
others
a
branch
at
.(hereinafter referred as The
Bank) of the first part.
And
Shri/Smt./Ms...Son/Wife/Daughter
of
Shri
..r/o
..(hereinafter
referred
to
as
The
Borrower)
and
Shri/Smt./Ms....Son/Wife/Daughter
of
Shri
.r/o(hereinafter referred to as The
Co-Borrower) collectively of the second part.
Note: The expression The Bank & The Borrower & The Co-Borrower, unless
repugnant to the context, shall include their assigns, nominees, executors,
administrators, successors and legal heirs.
WHEREAS at the request of the Borrower & Co-Borrower(s) the Bank has allowed /
agreed to allow housing loan for a sum of Rs. .(Rupees
.only) to the Borrower for purchase / construction /
repairs / renovation / additions / alterations of his / her house / flat on the terms and
conditions as hereinafter appearing.
In consideration of the aforesaid housing loan, including enhancement thereof, if
allowed from time to time, The Borrower & the Co-Borrower(s) agree(s) with the
Bank as under:-
Page | 68
1. That
the
bank
shall
advance
a
sum
of
Rs.
..
(Rupees..only) to the borrower either in lumpsum
or in parts as may be decided by the Bank for the purpose
(a)
to purchase a plot of land bearing No. .situated at
.admeasuringsq. mtrs and
for construction of a house thereon and / or
(b)
to purchase a built up house / flat bearing No. . situated
at..covering
an
area
of
..sq. mtrs. and / or
(c)
for construction of house on his / her plot of land admeasuring .sq
mtrs situated at and / or
(d)
for repairs, renovation or additions & alterations of his / her house / flat bearing
No. ..situated at
2. That the bank reserves the right to disburse the sanctioned amount on behalf of the
borrower directly to the concerned parties as per the details furnished by the borrower.
The bank shall disburse the said amount only after the borrower makes his contribution
(margin) of percent of total cost or such other margin as may be
prescribed.
3. That
in case of finance for construction of house / flat, the borrower undertakes
to submit a copy of the sanctioned plan issued by the competent authority in the name
of the borrower. The borrower further undertakes that he shall not violate the sanctioned
plan, the construction shall be strictly as per the sanctioned plan and it shall be the sole
responsibility of the borrower to obtain completion certification within 3 months on
completion of the construction. The loan shall not be disbursed to the borrower until
submission of said sanctioned plan. The loan shall be disbursed depending upon the
progress of construction on furnishing of a certificate by a qualified architect appointed
by the Bank about the progress of the construction at various stages as acceptable to
the Bank certifying that the construction of the house / flat is strictly as per the
sanctioned plan. Subsequently, at relevant point of time, the borrower shall furnish a
certificate issued by a qualified architect appointed by the Bank that the completion
certificate of the house / flat issued by the competent authority has been obtained. It is
specifically agreed by the borrower that in case of any violation of sanctioned plan or
the construction not being strictly as per sanctioned plan or failure of the borrower to
obtain completion certificate within three months of completion of construction or non
furnishing of requisite certificates by the qualified architect as aforesaid, the loan shall
not be further disbursed to the borrower and the Bank shall have the power and
authority to recall the entire loan already disbursed with interest, cost and other usual
bank charges.
OR
That in case of finance for purchase of constructed / built up house / flat, the borrower
declares that the built up house / flat has been constructed as per the sanctioned plan
and / or building bye laws and also has a completion certificate. The borrower further
undertakes to furnish a certificate from a qualified architect appointed by the Bank
before disbursement of the loan certifying that the built up house / flat is strictly as per
the sanctioned plan and / or building byelaws. In case the built up house / flat to be
purchased by the borrower falls in the category of unauthorized colonies, the borrower
Page | 69
shall provide proof to the satisfaction of the Bank that the said unauthorized colony has
been regularized and development and other charges have been paid. The borrower
further declares that the built up house / flat is meant for residential house and will not
be used for any commercial purpose. It is specifically agreed by the borrower that in
case the built up house / flat is found not to be constructed as per sanctioned plan and /
or building bye laws or the completion certificate of the house / flat is not available or on
failure to furnish requisite certificates from qualified architect or failure to provide proof
of regularization of the unauthorized colony or in case of misuse of residential house /
flat for commercial purpose, the loan shall not be further disbursed to the borrower and
the Bank shall have the power and authority to recall the entire loan amount already
disbursed with interest, cost and other usual bank charges.
4. That in case of finance for repairs, renovations, additions and alterations of the house
/ flat, the loan shall be disbursed as per the demands raised by selling agency or need
of the borrower subject to furnishing of sanctioned plan for the house / flat and
certificate by a qualified architect appointed by the Bank certifying that the house / flat is
built strictly in accordance with the sanctioned plan and / or building bye laws.
5. That
the borrower further covenants that the work of construction of the house /
flat shall be completed within 24 months from the first disbursement of loan or from the
date of possession of the plot whichever is earlier failing which interest
@PLR+3.50%per annum shall be charged by the Bank from the date of disbursement
of loan and loan shall be recalled as per normal procedure of the Bank.
6.That the Borrower undertakes and agrees to construct and build the said property in
accordance with approved plan and maintain and keep the property in marketable state
and in good condition and not to alter or make variance upon the structure without
previous written consent of the Bank.
7. That
the Bank shall have the right, power and authority to look, monitor and
view and assess proper utilization of the loan to be disbursed/paid, to inspect the
construction, renovation, addition & alternation etc., before disbursing / release of initial
as well as further amount of the housing loan.
8.
Rate of Interest
(a) That the Borrower exercises the fixed interest rate option and agrees to
pay interest at the rate of .% per annum with monthly rests.
In case of fixed rate of interest option exercised by the Borrower, the Bank shall have
the right in its absolute discretion to re-set the rate of interest after period of every
years.
OR
That the Borrower exercises the floating interest rate option and agrees to pay
interest at the rate of .percent per annum over/below prime lending rate of
the Bank, with a minimum of per annum calculated on the daily balance
due to the Bank in the said account and charged on monthly rests.
(b)That the option of fixed interest rate or floating interest rate exercised by the
borrower will not be allowed to be changed for a minimum period of ..years and
thereafter the change may be allowed at the sole discretion of the Bank.
(c)That in case the change of option is allowed by the Bank at any time from fixed rate
to floating rate, the floating rate of interest applicable to the said house loan would the
prevailing floating rate of interest at the time of change of option or as may be
prescribed by the Bank from time to time
Page | 70
(d) That in case the change of option is allowed by the Bank at any time from floating
rate to fixed rate, the fixed rate of interest to be charged would be the prevailing fixed
interest rate at the time of change of option or as may be prescribed by the Bank from
time to time.
(e) That the option exercised by the borrower shall be for the block period of
..years as above. 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 the option which the borrower is
then availing.
(f) That the borrower agrees to bear and pay any charge for switch over of the option in
respect of rate of interest at the rate as prescribed by the bank from time to time.
9. That in case of floating rate of interest option exercised by the Borrower, the rate of
interest shall be subject to change from time to time with the changes in Prime Lending
Rate / Internal Policy of the Bank at its absolute discretion to decide or on receipt of any
directive from Reserve Bank of India regarding rate / rests at which the interest is to be
charged.
10. That the Bank shall have the right to recover interest tax or any other tax or charges
levied or to be levied at the rate specified by the Government of India or any authority
for the time being in force, from time to time. The Bank shall have the discretion to
decide the manner of computation of said tax or charges and charging thereof to the
account.
11. That the interest accrued at periodical rests under either option will form part of the
principal and the amount so calculated shall become the principal for next period / rest
and so on and carry interest with agreed rests and rates under either of the options
exercised by the Borrower.
12. That the borrower shall pay interest and other charges and expenses, if any, as and
when the same fall due.
The amount of the loan shall be paid regularly
in..monthly / quarterly / half yearly installments of Rs. .. each,
the first installment of payment to fall due on* The amount and / or the
number of installments may be changed on account of change in rate of interest or
change of option of interest or on request of the Borrower if accepted by the Bank at its
sole discretion.
13. That it is specifically agreed by the Borrower that the Bank shall be entitled to
charge penal interest at the rate of 2% per annum over and above the normal rate of
interest with monthly rests on the amount then outstanding under the loan, in case
Borrower defaults in repayment of any of the instalments, in case of any violation of any
terms, conditions, provisions and undertakings by the Borrower under this agreement
including schedules attached thereto, more particularly of clause No.19, on the
amount(s) in default from the date of default, on the amount outstanding from the date
of demand without capitalization, in case the entire dues/ sum outstanding is recalled by
the Bank, till the date of adjustment/ liquidation of the entire sum due/ outstanding.
14. That the borrower agrees that if the loan is pre paid in part or full over and above the
regular instalments in any manner whatsoever, the borrower will bear and pay the
prepayment charge @ 2% per annum on the amount outstanding under the said
Housing Loan. However, the borrower can prepay upto maximum of 25% of the
Housing Loan amount then outstanding in any particular year. This facility can be
availed by the borrower only once in a financial year.
15. That the borrower undertakes to have exclusive dealing with the Bank and not to
raise any loan for purchase / construction / repairs / renovation / additions / alterations
Page | 71
of house / flat from any other Bank/Institution without obtaining prior approval from the
Bank.
16. That the Borrower hereby agrees that he shall execute a legal mortgage deed and
get the same registered in the office of Registrar of Assurance under the provisions of
the law at his cost, expenses and charges including stamp duty charges, in favour of the
Bank in a
form, type and manner acceptable to the Bank or if acceptable to the bank, shall create
registered / equitable mortgage and shall deposit with the Bank all original documents of
title of the property to the Bank with the intention to create registered / equitable
mortgage of the above mentioned property to secure the repayment of the loan,
interest, expenses, costs, fees and other usual Bank charges immediately upon the
execution of the title deed in respect of the said property in favour of the Borrower. The
Bank shall have the right, power and authority to look, monitor and view and assess
proper utilization of the loan to be disbursed/paid, to inspect the construction,
renovation, addition & alteration etc., before disbursing /release of initial as well as
further amount of the loan amount/advance instalments. In case, the security is not
created by the Borrower as required by the Bank, further installments of loan amount
shall not be disbursed by the Bank and the amount already disbursed by the Bank shall
become immediately repayable by the Borrower.
17. That in case of default of the borrower in fulfilling its aforesaid obligation of
executing mortgage deed / creation of mortgage by deposit of title deeds, the bank,
without prejudice to its other rights of recalling the entire outstanding dues etc. may also
take legal recourse at the cost of the borrower for enforcing the specific performance of
the said obligation of the borrower.
18. That the borrower will execute an irrevocable power of attorney in favour of the
Bank, if so required, inter alia, authorizing the bank, in its name and on behalf of
borrower to complete the transaction of purchase of the said house, to pay such sums
as may be necessary out of the amount of the loan to the vendor to meet the agreed
sale price, to get the sale / title deed executed and registered in the name of the
borrower, to receive and take delivery of the sale / title deed from the vendor and / or
from the office of the Sub-Registrar after Registration, to deposit the original registered
sale deed / documents of title of the aforesaid house / flat with the bank to create
security thereon by way of mortgage by deposit of title deeds and to do all such other
acts, deeds and things as may in the opinion of the bank be necessary or desirable for
the due fulfillment and carrying out the obligations of the borrower in this behalf and
under this agreement towards the bank.
19. Notwithstanding anything to the contrary herein contained and upon happening of
any of the events as provided hereinafter of which the Bank shall be the sole judge, the
entire amount/sum due/amount outstanding in the account together with interest to be
charged as agreed and costs, expenses and other usual Bank charges, shall become
due on demand being made in writing and the Bank will be entitled to realize the same
and enforce the security, if any, at the cost and expenses of the Borrower;
a. Any default in payment of any of the instalments on the due date;
b. Any representation or statement in the Borrowers loan application being found to be
incorrect;
c. The Borrower committing any breach or default in the performance or observance of
any term, condition, provision or any clause contained in these presents or in the
loan application or Banks sanction letter, as the case may be;
Page | 72
d. Execution or distress or other process being enforced or levied upon or against the
whole or any part of the Borrowers property whether secured to the Bank or not;
e. The Borrower being adjudicated insolvent or taking advantage of any law for the
relief of insolvent debtors or entering into any arrangement or composition with the
creditors or committing any act of insolvency;
f. In case of diversion of funds/amount of loan/advance or attempt to divert the same,
so disbursed/paid;
g. In case the Borrower changes its constitution, more particularly in promoter directors
or in the core management team or any merger/acquisition/amalgamation without
the previous written permission of the Bank;
h. If the Borrower, without the previous written consent of the Bank, create or attempt
or purport to create any mortgage, charge, pledge, hypothecation, assign or lien or
encumbrance on the said property agreed to be mortgaged to the Bank;
i. If the building/property is damaged by fire, floods or otherwise and does not remain
fit for use;
j. If the Borrower fails to mortgage the property so acquired in favour of the Bank, for
any reason whatsoever;
k. If any other event or circumstances shall occur which shall in opinion of the Bank be
prejudicial to or endanger or be likely to prejudice or endanger its security
hereunder.
On the question whether any of the matters, events or circumstances mentioned in subclause (a) to (j) above has happened, the decision of the Bank shall be conclusive and
binding on the Borrower.
20. That 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 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 with interest, costs and
other charges, if
(i)The Borrower has failed to pay margin i.e. the cost of house/flat (including escalation,
if any) less the loan, and / or
(ii) Progress of the construction work is not satisfactory (Bank being the sole judge
thereof.)
21. That the borrower shall fully insure comprehensively the property to be purchased /
constructed against loss, damage by fire, riots and other hazards like earthquake, floods
and if required by the bank against any other insurable risk in the joint name of borrower
and the bank as mortgagor and mortgagee respectively 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, but no binding on the Bank, to get the
same insured as aforesaid and debit the amount of premium to the Borrowers account
which shall thereupon for the purposes of this agreement be treated as part and parcel
of the principal amount advanced.
Provided, however, that in the event of rejection of any claim against such insurance
wholly or partly for the omission / deficiency of any type whatsoever, to insure any risk
the Bank shall not be held responsible as insurance, including its renewal from time to
time, of the said property, the entire liability & obligation of the Borrower towards the
Bank shall continue notwithstanding such rejection of the claim as aforesaid and or any
such omission to insure or deficiency of insurance and the Bank shall not be held liable
Page | 73
and responsible for such act of omission to insure or deficiency of insurance as

aforesaid. The Borrower shall keep the Bank fully indemnified in this respect. All such
expense, costs and incidental incurred by the Bank shall form part of the sum due
recoverable from the Borrower and subject to interest as applicable and be debited to
the Borrowers account. Further, that all the sums received under any such insurance
as aforesaid shall be received by the Bank and applied in or towards the liquidation of
the balance due to Bank for the time being due and in the event of there being a surplus
the Bank shall be entitled to appropriate such surplus. Provided further that the Bank
shall not incur any liability to the Borrower if it fails to lodge any claim under the policy
within the
prescribed time or for any reason whatsoever. Nor shall the Bank incur any liability to
the Borrower for not bringing any suit for recovery of insurance money or allowing such
suit to be time barred. In case of any dispute arising with the insurance company, the
Bank shall have the absolute right to adjust, settle, compromise the same without
reference to or consent of the Borrower and same shall be valid and binding on the
Borrower but shall not impair the right of the Bank to otherwise recover its dues from the
Borrower.
22. That it will be duty and responsibility of the borrower to obtain the necessary
permission of the Vendor and or any authority and the permission from the competent
authority under the Urban Land (Ceiling and Regulation) Act 1976, if required, 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 / are obtained
and submitted to the bank.
23.That the Borrower assures and declares that the plot of land herein mentioned is
freehold / lease hold and is his / her full and absolute property having good marketable
title free from all encumbrances, attachment, court order or is not under any restrained
order passed by any court or authority for the time being in force and the Borrower
declares that he / she can legally without any hindrance of any type whatsoever can
create registered mortgage or registered / equitable mortgage with all accretions
thereto as security with the Bank for the repayment of the term loan, interest, costs,
expenses and other usual Bank charges. 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 own sources. Such original conveyance/transfer deed executed after
conversion from leasehold to freehold shall be deposited with the Bank as security for
the loan advanced.
24. That the borrower hereby agrees as a pre condition of the loan / advance given to
them by the bank that in case they commit default in the repayment of loan / advance or
in the repayment of interest thereon or any of the agreed installments of the loan on due
date(s), the bank and / or the Reserve Bank of India or any other agency authorized by
the Bank will have an unqualified right to disclose their names or the names of their
company / firm/ unit and their respective Directors / Partners / Proprietors as defaulter in
such manner and through such medium as the bank or Reserve Bank of India in their
absolute discretion may think fit.
25.That the Borrower agrees that he shall not during the continuance of this loan and /
or agreement, part with the possession of the property or any part thereof without the
previous written consent of the Bank nor the Borrower shall sell, mortgage, assign, gift,
transfer, alienate or otherwise deal with the said property or any part thereof without the
previous written consent of the Bank.
Page | 74
26.That the Borrower agrees to pay all public demands, dues and charges in respect of
the property which may be levied by any Government of any local authority during the
continuance of the loan. The Borrower agrees to bear the entire cost of execution,
registration and stamp paper including legal fee or any other charges required for the
mortgage deed to be executed. The Borrower also declares that the said property is not
subject to any court dispute and no tax dues of any nature is due against the said
property from any authority for the time being in force. The said property is situated in
the authorized colony and is not subject to acquisition nor any such acquisition
proceeding is pending before any authority or court of law and the said property is not
subject to any demolition or other order, affecting the superstructure or land underneath,
of the Court / Tribunal / Authority for the time being in force.
27.That it is undertaken and declared by the Borrower that he shall not execute any
agreement to sell, any type of power of attorney or any other document in respect of the
said property which prejudice and affect the rights, power and authority of the Bank till
the entire sum due / debt / outstanding amount in the loan account is fully adjusted and
liquidated.
SCHEDULE I TO THE AGREEMENT FOR TERM LOAN
(Schedule of Repayment)
Amount of instalment
Due date of payment

of first instalment
(In Rupees)
Number & Periodicity of
instalments
(The installment amount may change in accordance to variance in applicable Rate of

Interest )
Details of property Mortgaged
The Plot/ House/ No. situated in Block
.at
.acquired by the Mortgagor / Borrower vide
.deed dated (registration particulars) and so also
the construction and superstructure built / to be built thereon and bounded as given
below:
North
South
East
West
IN WITNESS HEREOF the parties hereto have set their hands on the day, month and
year above written.
(Borrower)
(Bank)
Page | 75
ANNEXURE-5
NOTE : Affidavit is a model format which may be amended accordingly to terms of sanction.
AFFIDAVIT
I/We ____________s/o ________________ r/o ____________ confirm that on my/our

request letter dated __________ I/we have been sanctioned a housing loan of
Rs._________ by Oriental Bank of Commerce having its Head Office at Harsha Bhawan, EBlock, Connaught Place, New Delhi and among others a Branch Office at ___________
[hereinafter referred to as OBC].
Now I/we submit as under:-.
1) That I/We have not taken any other housing loan from any bank or financial institution
and shall not avail any such loan without written permission from OBC.
2) That the house/flat acquired from the loan taken from OBC shall be used for own use
and not for any commercial consideration.
3) That the house/flat shall be kept in good condition and the OBC officials will be
permitted to inspect the same at my/our cost.
4) That the Income declared in my/our tax returns/balance sheet/profit and loss account/
salary slip is true and correct.
5) That I/We shall be responsible for the consequences including return of the housing
loan to OBC, if the above is not found in order at any future date.
6) That I/We are not related to any of the officers of OBC.
7) That I/We have not defaulted in repayment of any loan with any bank or institution and
accounts maintained by us with OBC, other banks, and/or other institutions. We have
not been categorized as non performing asset in any of the bank/institution, neither we
have sought any rebate or concession or relief from OBC at any time.
8) That I/We authorize OBC to divulge any information about me/us to any bank/
institution/law enforcing agencies without any intimation to me/us.
9) That I/We authorize OBC to debit my/our account _________________ with OBC or
any of its other branch for the installment and interest.
10) That In the event of default in repayment of two consecutive installments OBC shall
have the liberty to take all suitable steps including taking possession of the house and
or selling the same to recover the dues. All expenses in this regard shall be borne by
me/us.
11) That I/We declare and confirm that no proceedings are pending or contemplated
against me/us under Chapter XVII-B of the Income Tax Act, 1961 as on the date of
creation of registered / equitable mortgage.
12) That I/We irrevocably undertake and confirm that in the event of my/our failing to repay
the installment/interest of OBC, OBC will be at liberty to appropriate my/our salary with
my/our employer without any prior intimation to us and shall continue to receive the
salary till the loan is adjusted/regularized or OBC gives in writing to the contrary.
13) That I/We have submitted post-dated cheque for repayment of the loan. In the event
of any of the cheque being dishonoured OBC will be authorized to proceed against
me/us under section 138 of the Negotiable Instruments Act.
Deponent
Page | 76
Verification
Verified at ___________ on _________________ that the contents of the above affidavit are
true to the best of my knowledge, no part of it is false and nothing material has been
concealed therefrom.
Deponent
Page | 77
ANNEXURE-6
Power of Attorney
This irrevocable Power of Attorney is executed on the _____ day of ______ 20____ by
(i)
Shri/Km./Smt._________________________
S/o,
D/o,
W/o
Shri
________________________
R/o
_____________________________
______________________________
and
(ii)
Shri/Km./Smt./.
___________
_____________________ S/o, D/o, W/o Shri ________________________ R/o
__________________________________
____________________________(hereinafter called the EXECUTOR(s) which term
shall unless repugnant to the context hereof, includes his /her/their heirs, successors,
administrators and assigns) in favour of Oriental Bank of Commerce, a body corporate
constituted, under Banking Companies (Acquisition & Transfer of Undertakings) Act,
1980, having its Head Office at Harsha Bhawan, E Block, Connaught Place, New
Delhi, and amongst others are BO: _________________________ (hereinafter referred
to as Bank, which team shall include its successors and assigns).
WHEREAS
1) The Executor(s) has/have entered into loan agreement dated _________
(hereinafter referred to as the said agreement) with the Bank for obtaining a loan
of
Rs.
_____________
for
the
purchase/construction/repairs/renovations/alterations/additions
of
/to
the
house/flat mentioned in the said agreement to be mortgaged to the bank and
also described in the Schedule I hereto (hereinafter referred to as the said
property).
2) Vide the said agreement, the Executor(s) has/have agreed, inter-alia, to deliver
to and deposit with the Bank all documents of title and further documents as
prescribed by the bank and stated in the Schedule II hereto, relating to the said
property as and when it comes into his/her/their possession with intent to create
a security thereon for the purpose of 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 loan agreement.
3) Vide the said loan agreement, the Executor(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 Executor(s) under the said agreement inter-alia, in regard to
the creation of the aforesaid security, etc.
NOW THIS DEED WITNESSTH THAT the Executor(s) hereby appoints/nominate &
constitute(s) Oriental Bank of Commerce to act through any of its officers (hereinafter
severally called the attorneys) to be his/her/their true and lawful attorneys in his/her/their
names and on his/her/their behalf to do any/all acts, deeds or things and, execute all or
any of the following instruments;
1) To make payment of the said advance that may be sanctioned to the Executor(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.
Page | 78
3) To obtain and procure proper conveyance/transfers and other assurances of the

said property from the vendor, to get the leasehold 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 Subregistrar, 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 Executor(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 purpose of matters aforesaid.
And the Executor(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 Executor(s) and the Executor(s)
hereby declare that this Power of Attorney shall be irrevocable till all the repayments
under the said Agreements have been duly made by the Executor.
SCHEDULE I
( Details of the property to be purchased)
SCHEDULE II
(Documents of title and further documents as prescribed by the bank)
IN WITNESS WHEREOF the within named Executor ______________ has/have
executed this Power of Attorney on the day, month and the year first above written.
WITNESS
EXECUTOR
Page | 79
ANNEXURE-7 ( Loan doc -49)

MORTGAGED DEED
This Deed of Mortgage is made at ..on this ..day
of.20between.(Full description of
the borrower), hereinafter referred to as The Borrower / Mortgagor (which expression
shall include his / her/ their legal heirs, executors, administrators, and assigns) of the
one part and Oriental Bank of Commerce, a body corporate constituted under the
Banking Companies (Acquisition & Transfer of undertakings) Act No.40 of 1980 having
its Head Office at E-Block Harsha Bhawan, Connaught Place, New Delhi 110 001 and
amongst others, a branch at .hereinafter referred to as The
Bank or The Mortgagee (which expression shall include its successor and assigns) of
the second part.
WHEREAS at the request of the Borrower / Mortgagor the Bank has advanced / agreed
to
advance
a
sum
of
Rs.(Rupeesonly)
to
the
Borrower / Mortgagor by way of housing loan (including the enhancement thereof) upon
securing the repayment thereof together with interest, cost and other charges as
stipulated in the Agreement of Housing loan and documents executed by the Borrower /
Mortgagor in the manner as hereinafter appearing.
AND WHEREAS the Borrower / Mortgagor has acquired through the aforesaid loan or
otherwise and is the absolute owner in possession of the properties fully described in
the schedule hereunder; (hereinafter referred to as the subject property)
NOW THIS DEED OF MORTGAGE WITNESSETH AS FOLLOWS:
1.
That in consideration of the sum of Rs.advanced / agreed to be
advanced by the Bank to the Borrower / Mortgagor as per the loaning documents
executed in Banks favour, the Borrower / Mortgagor, hereby mortgages upto the Bank
the subject property more fully described in the schedule hereunder by way of simple
mortgage to secure the repayment of the loan amount aforesaid together with interest,
charges and all other expenses due to the Bank payable as per the terms and
conditions contained in the agreement of housing loan and documents executed by the
Borrower / Mortgagor.
2.
That all the expenses for execution and registration of the aforesaid simple
mortgage of the subject property in favour of the Bank shall be borne by the Borrower /
Mortgagor and if paid by the Bank on behalf of Borrower / Mortgagor, the same will form
part of the principle amount and will carry interest at the rate applicable in respect of the
amount advanced.
3.
That the Borrower / Mortgagor agrees to keep the subject property fully insured
for its full market value in the joint names of the Borrower / Mortgagor and the Bank as
the Mortgagee with agreed Bank clause, against any damage or loss due to destruction
by fire, civil-commotion, riots, floods, earthquake and any other insurable risk and keep
alive the 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 Borrower / Mortgagor. In case
the
Borrower / Mortgagor fails at any time to get it insured and pay the necessary premium,
the Bank may, but it will not be bound to, get it insured and debit the cost of the
Page | 80
premium to the Borrowers / 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.
4
That the Borrower / Mortgagor shall also continue to pay all rates and taxes
accruing due in respect of the subject property under any law or rule for the time being
in force.
5.
That the Borrower / Mortgagor covenants that the subject property is free from all
encumbrances and that the Borrower / Mortgagor is entitled to mortgage the same unto
the Mortgagee.
6.
That the Borrower / Mortgagor shall not sell, alienate, lease out or part with
possession of the subject property or create any further charge, mortgage or
encumbrance on the same in favour of any other person without prior consent of the
Bank in writing.
7.
That in case of default / breach of any of the terms and conditions contained in
this Deed or in the Loaning Documents executed by the Borrower / Mortgagor, the Bank
shall have the option and the right to realize all its dues outstanding in the account and
cause the subject mortgaged property to be sold with all its accretions, without being
bound to proceed against other securities or sureties, if any, held by the Bank.
8.
That on payment of all the dues secured through the said mortgage under these
presents, the mortgagee shall be bound to re-convey the said subject property free from
all encumbrances to the Borrower / Mortgagor and execute deed of discharge; transfer
and every other writing in favour of the mortgagor at the expense of the Borrower /
Mortgagor necessary for this purpose.
IN WITNESS WHEREOF the Borrower / Mortgagor and the Mortgagee have set their
hands on the day, month and the year hereinabove first written.
SCHEDULE
(Description of the property hereby mortgaged)
a. The Plot No. situated in Block
.at Scheme No. ensuring
.acquired by the Mortgagor / Borrower vide
.deed
dated
(registration
particulars) and so also the construction and superstructure built / 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
1.
2.
MORTGAGEE
Page | 81
Annexure-8
LETTER FOR SUBMISSION OF ECS/SI /NEFT/ AUTO RECOVERY FROM EXISTING
ACCOUNTS
Place :
Date :
The Manager
Oriental Bank of commerce
B/o
Dear Sir,
Re : My Home Loan Account.
To facilitate due payment of instalments in the above Home loan account, I/We
undertake to give ECS/SI /NEFT/Auto recovery from existing accounts towards the
agreed Equated Monthly instalments, etc.
I/We am/are aware that dishonor of any ECS/SI /NEFT/ Auto recovery from existing
accounts due to insufficiency of funds will entail criminal action, as per provisions of law,
without prejudice to Banks other rights. Tendering of ECS/SI /NEFT/ Auto recovery
from existing accounts will in no way absolve my/our obligation to pay the instalments or
the amount due as per terms.
Date of ECS/SI /NEFT/ Auto recovery from existing accounts
Amount
Yours faithfully,
(Borrower(s))
Page | 82
ANNEXURE-9
UNDERTAKING FROM THE BORROWER FOR PREPAYMENT OF LOAN
On a Stamp Paper of Requisite Value
The Branch Manager,
Date _______________
_______________________
_______________________
Dear Sir,
Reg : My/Our Housing Loan Account No.
On my/our request, you kindly sanctioned and released a Housing Loan of
Rs.___________ lac as per the terms and conditions of the Loan Agreement dated
___________ executed by me/us.
As per one of the terms, the loan is to be repaid by me/us within a period of ____ years.
However, on the basis of my/our present and foreseeable future income, I/We propose
to repay the loan within a period of _____ years from the date of first disbursement.
I/We, as such, request you to adjust my Future rate of interest as per prevalent policy of
the Bank.
I/We undertake as follows:1. That benefit in interest rate, as above, made available to me shall be withdrawn
and interest-differential shall be recovered in full in the event of my/our switching
loan to other bank/FI. Beside the above, a penalty of 1% over the outstanding
balance shall be recovered in case of prepayment through other bank/FI.
2. That in the event of my/our failing to repay the loan as per new schedule, a
penalty of 2% shall be charged on outstanding balance for the period of default.
We understand that interest rate linked to the tenure are subject to change as per the
discretion of the bank. I/We further understand that interest rate in my Housing Loan
account shall be governed by the policy of the bank, which is subject to change from
time to time.
Yours faithfully,
(Borrower (s))
Address:
Page | 83
ANNEXURE-10
ACKNOWLEDGEMENT LETTER FOR ACCEPTANCE OF THE REQUEST OF THE
BORROWER FOR PREPAYMENT OF LOAN
Shri/Smt.
Date ______________
________________________
________________________
Dear Sir/Madam,
Reg : Housing Loan Account No.

In reference to your letter dated _____________, we are pleased to inform that your
request has since been acceded and future repayment period in your Housing Loan
Account No._________________ has been revised from ________ years to ______
years. Accordingly, future rate of interest in the account has been adjusted at _____ for
the present.
However, the revision shall be effected from Ist day of the succeeding month and is
subject to the following conditions:
1. That you shall submit 48 post dated cheque
Rs.____________.
for revised EMI i.e.
2. That the benefit in interest rate, if any, made available to you shall be withdrawn
and interest-differential shall be recovered in full in the event of your switching
loan to other bank/F.I. Beside the above, a penalty of 1% over the outstanding
balance shall be recovered in case of prepayment through other bank/F.I.
3. That in the event of your failure to repay the loan as per new schedule, a penalty
of 2% shall be charged on outstanding balance for the period of default.
Please note that interest rate linked to the tenure are subject to change as per the
discretion of the bank. Please further note that interest rate in your Housing Loan
account shall be governed by the policy of the bank, which is subject to change from
time to time.
Yours faithfully,
Branch Manager
Page | 84
ANNEXURE-11
UNDERTAKING / AFFIDAVIT FORM THE BORROWER TO BE OBTAINED ON
STAMP PAPER
Place:
Date :
To,
Oriental Bank of Commerce
B/o
Dear Sirs,
You have sanctioned a loan of Rs. _______________ (Rupees ___________
____________________) for construction on Plot No. _________________ hereinafter
referred to as the said plot.
I/We the undersigned agree and undertake that:
1.
2.
3.
I/We shall carry on construction as per the duly sanctioned plans sanctioned on
_______________ vide letter dated _____________.
I/We shall obtain the Form D/Occupancy/Completion Certificate from the
authority/authorities concerned immediately upon completion and/or upon
occupying the built up premises over my said plot and shall deposit the
original/certified copy of the same with your Branch.
Any breach of a stipulation of the banks policy and/or the borrowers
undertaking shall be deemed to be a breach of conditions on which the
aforesaid loan was agreed to be granted by the bank. Any breach of conditions
may be treated as a default under the loan agreement and the bank shall be
entitled to charge penal interest over and above the agreed rate of interest on
the outstanding loan amount and to take such further action against the
borrower as the bank may deem fit including recalling of the loan amount
forthwith and initiating the recovery proceedings in accordance with law.
Yours faithfully,
(Borrowers/Co-borrower/Mortgagor)
Address :
Page | 85
ANNEXURE-12
Letter from Customer to DDA
Place :
Date :
To,
Delhi Development Authority
Vikas Sadan,
INA, New Delhi.
Dear Sir,
Please note that I have been sanctioned a housing loan of Rs. ____________ by
Oriental Bank of Commerce B/o _______________________, for the purchase of a
DDA flat under category _______________ at ____________ allotted by the Delhi
Development Authority vide allotment letter No. _____
This is to inform you that I intend to mortgage the above said flat allotted to me to
Oriental Bank of Commerce / its security trustee as security for the loan sanctioned to
me. This may be kindly noted in your records and the permission for the same may
please be granted.
Yours faithfully,
Name and address
cc to: The Branch Manager, OBC.
Page | 86
ANNEXURE-13
Draft of N.O.C. to be obtain from the society on its letterhead
Place :
Date :
To,
B/o
Dear Sirs,
Re : Flat/Plot No. _______________ of Mr./Ms. ______________________ in the
building called ____________ of the ____________ housing society Ltd., situated
at ________________________________________________
This is to confirm that the above society is registered under No. __________ dated
___________. The Sale deed / Lease deed dated ___________ in respect of the land
bearing Plot No. ____________ has been executed in favour of the society under
Registration No. _____________ dated _______ and as such the society is the owner
of the Plot of land and the building thereon.
The society has allotted / transferred / agreed to transfer the above Flat / Plot to Mr./Ms.
___________________________.
We
confirm
that
Mr./Mrs.
________________________
is
a
bonafide
member
of
the
society.
We undertake to submit the deed document to the Bank if not already done, once it is
registered in favour of this allottee and received from the concerned authorities.
We hereby assure you that the said flat / plot, as well as the said building and the land
appurtenant thereto are not subject to any encumbrance, charge or liability of any kind
whatsoever and that the entire property is free and marketable.
We further confirm that we have a clear, legal and marketable title to the said property
and every part thereof, and that all taxes and dues in respect thereof have been paid
upto date.
We confirm that there are no restrictive / negative covenants in the Bye-laws/Rules of
the above mentioned society concerning the transfer of shares/members interest in the
society and other related matters.
We hereby confirm and agree that we have No Objection to your giving a loan to the
said allottee / transferee / proposed transferee and his/her/their mortgaging the said
flat/plot to you/your security trustee by way of security for the loan.
Page | 87
We also inform you that the share certificates have been issued/transferred to the said
allottee / transferee.
We confirm to you that we undertake to comply with the provisions of the Apartment
Ownership Act and the Rules therein as applicable to the society.
We have noted the aforesaid lien on the property. We undertake that as soon as the
registration formalities are completed, we will send the registry documents to the Bank
directly.
Yours faithfully,
Authorized Signatories
(Secretary AND Chairman/President)
with seal of society
Page | 88
ANNEXURE-14
Undertaking to execute the Agreement for Sale/Deed of Conveyance and have the
same registered in the office of the relevant Registrar/Sub-Registrar of
Assurances and to deposit the same with the bank.
To
B/o
Dear Sirs,
You have sanctioned a loan for an amount of Rs. ___________ (Rupees
____________________________) under the terms and conditions of the Loan
Agreement
dated
____________
in
respect
of
property
_____________________________ (hereinafter referred to as the said property). The
Agreement for Sale/Deed of Conveyance in respect of the said property has not as yet
been executed and registered in my/our favour by Haryana Urban Development
Authority [HUDA].
I/We, the undersigned hereby agree and undertake that
1. I/We shall promptly have the Agreement for Sale/Deed of Conveyance executed
in my/our favour and shall pay and discharge all dues and charges in respect
thereof and have the same registered in the office of the relevant Registrar/SubRegistrar of Assurances.
2. I/We shall deposit the said Agreement for Sale/original Registered Deed of
Conveyance with you and shall execute and sign all such document/documents
that may be required to be executed by you in the form and manner as
suggested by you for creation of the necessary security in your favour / in favour
of your security trustee.
3. Any breach of a stipulation of the banks policy and/or the borrowers undertaking
shall be deemed to be a breach of conditions on which the aforesaid loan was
agreed to be granted by the bank. Any breach of conditions may be treated as a
default under the loan agreement and the bank shall be entitled to charge penal
interest over and above the agreed rate of interest on the outstanding loan
amount and to take such further action against the borrower as the bank may
deem fit including recalling of the loan amount forthwith and initiating the
recovery proceedings in accordance with law.
Yours faithfully,
(Name & Address)
Page | 89
ANNEXURE-15
Draft of N.O.C. to be obtained from the Builder on his letter-head
Place :
Date :
To,
B/o
Dear Sirs,
Re : Permission to mortgage Flat No. ___________________ on the floor of the
building proposed to be named as / named as ______________________ situated
at __________________________________________.
This is to confirm that we have sold Flat No. ______________ admeasuring
___________ Sq. ft. (carpet/built-up area) on the __________________ floor of the
building proposed to be named as / Known as ___________________ situated at
______________________ under construction / constructed by us to Mr./Mrs./Ms.
____________________________
for
a
total
consideration
of
Rs.
____________(Rupees _____________________________) under an Agreement for
sale dated ______________.
We confirm that we have obtained necessary permissions / approvals / sanctions for
construction of the said building from all the concerned competent authorities and the
construction of the building as well as of the Flat are in accordance with approved plans.
We have not made any sub division in the flat after the plans have been approved by
the Municipal Corporation. The flat is meant for residential purposes as per the
sanctioned plan.
We assure you that the said flat as well as the said building and the land appurtenant
thereto are not subject to any encumbrance, charge or liability of any kind whatsoever
and that the entire property is free and marketable. We have a clear, legal and
marketable title to the said property and every part thereof.
We are aware that the said Mr./Mrs./Ms. __________________ has approached you for
a loan for purchasing / acquiring the said flat and that you have agreed to sanction /
grant the loan to Mr./Mrs./Ms. ____________ to purchase / acquire the above flat and
Mr./Mrs./Ms. ___________________ has agreed to mortgage the said flat in your
favour / in favour of your security trustee as security for the said loan. We hereby
confirm that we have No Objection to Mr./Mrs./Ms. _____________________
mortgaging the said flat to you / in favour of your security trustee by way of security for
repayment of the said loan.
Page | 90
AND Notwithstanding anything to the contrary in the said Agreement for sale, we hereby
agree to note your charge in our books in respect of the said flat and Mr./Mrs./Ms.
____________________ will not be permitted to cancel, transfer, assign, sell off or in
any other way / manner deal with the said flat prejudicial to the interest of the Bank / the
security trustee nominated by the Bank, without the prior written consent of the Bank /
the security trustee nominated by the Bank. We undertake that as soon as the
registration formalities are completed, we will send the registry documents to the Bank /
the security trustee nominated by the Bank directly.
We also undertake to inform and give proper notice to the co-operative housing society
as and when formed, about the flat being so mortgaged.
Yours faithfully,
For _________________(Builders)
(Signatures)
Page | 91
ANNEXURE-16
Letter from Builder to the Bank
Place :
Date :
To,
B/o
Re : Transfer of property
Dear Sirs,
This is to confirm that we are in receipt of the original Sale Agreement of the property
No. _______________ situated at _______________________ which belongs to Mr.
/Mrs./Ms. _________________________ at present.
We also confirm that we are in receipt of the request from Mr./Mrs./Ms.
_____________________
to
transfer
the
property
to
Mr./Mrs./Ms.
_________________________________________. We do hereby undertake to send
the original sale agreement duly endorsed in favour of Mr./Mrs./Ms.
_______________________________________ directly to the Bank or handover to the
authorized representative of the Bank within 15 days from the date of this letter.
We also undertake to note a lien on the property in favour of the Bank /the security
trustee nominated by the Bank and send the original registry document to the Bank /the
security trustee nominated by the Bank directly as and when it is executed.
Yours faithfully,
For _______________(Builders)
(Signatures)
Page | 92
ANNEXURE-17
TRIPARTITE AGREEMENT WITH THE BUILDER
This agreement made at ______ on this _____day of___________
between
(i)________________s/d/o__________________
Resident
of
______________________________ hereinafter referred to as the borrower (which
expression shall unless excluded by or repugnant to the context be deemed to include,
as the case may be, his/her co-borrower, heirs, executors, administrators, assigns and
legal representatives) of the FIRST PART,
b. ______________
S/o_____________________
of
___________________________________ hereinafter referred to as the Builder (which
expression shall unless excluded by or repugnant to the context be deemed to include,
as the case may be, his/her heirs, executors, administrators, assigns and legal
representatives) of the SECOND PART,
and
(iii) Oriental Bank of Commerce, a body corporate constituted under the Banking
Companies (Transfer and Acquisition Of Undertakings) Act 1980, with its Head Office at
Harsha Bhawan, E Block, Connaught Place, New Delhi represented by its Branch
Manager at Branch Office __________________ hereinafter referred to as OBC (which
expression shall unless excluded by or repugnant to the context be deemed to include
its executors, administrators, assigns) of the THIRD PART.
Whereas by an indenture of freehold plot executed by ______________ and
_______________S/o________________ R/o________________________ known as
owner of a Plot of land measuring ________ Sq. Mtrs. known as Plot No.
_________________, the said plotwas granted/conveyed and transferred by way of a
sale
deed
to
_______________S/o_______________
R/o
______________________________________________.
A registered sale deed
dated _________entered in book No.__________ of Sub Registrar-__ was duly
executed in favour of ______________________,
And Whereas the Builder has acquired and constructed / shall acquire and construct a
dwelling unit at the cost of the borrower and has given an undertaking to the effect that
the said building has been/shall be built in accordance with the layout plan sanctioned
by the competent authorities.
And whereas the borrower has approached OBC for rendering financial assistance to
him in order to make payment to the builder of the price of dwelling unit and OBC has
agreed to do so in accordance with its lending policies and terms and conditions for the
grant of loans, which have been read and understood by the Borrower/Co-borrower/ as
well as the Builder. The borrower and the builder who have gone through the said
policies of OBC agree to the terms and conditions set out therein and as such have
agreed to the mortgage of the flat, disbursement of the loan in instalments, rate of
interest on loan, repayment terms, payment of additional penal interest in case of
default, providing of collateral securities, etc. (hereinafter collectively referred to as the
said Housing Loan Scheme).
And whereas the borrower/co-borrower has represented that he/she would create
mortgage of the flat/dwelling unit allotted to him/her by the builder in favour of OBC by
depositing with OBC all documents of title as stated in the said housing loan scheme of
Page | 93
the OBC, such as the allotment letter, receipts for payment made etc., issued by the
builder to the borrower by which the borrower claims title to the aforesaid flat/dwelling
unit, till the execution of conveyance deed/sale deed in respect of the flat/dwelling unit
allotted/purchased from the builder.
Now in the above premises and in consideration of sum of Rs. __________ (Rupees
______________________________________) / already deposited by the borrower as
initial amount of registration deposit with the builder under the scheme for purchase of
ready built flat, it is hereby agreed to by and between the parties here to as follows:1. The borrower hereby authorizes OBC to make disbursement of the sanctioned
loan to the builder directly on his behalf against demand by the builder as
construction progresses.
2. On behalf of the borrower, OBC shall make payment of the loan / instalment
thereof to the builder directly and all payments so made to the builder shall be
deemed to be payments made to the borrower.
3. The above covenant shall not be construed to mean and fasten any responsibility
upon OBC to observe some schedule for release of loan, either at one time or in
instalments, if any between the builder and the borrower or make payment to the
builder as requested. OBC shall not be responsible for any delay or omission in
disbursements. The borrower shall be responsible to follow up with OBC to make
disbursement on his behalf as per any agreement he may have with the builder.
4. The borrower agrees that notwithstanding anything to the contrary contained
herein OBC shall not be responsible or liable to answer or ascertain the progress
of construction and a demand for disbursement by the builder would be sufficient
for OBC to effect disbursement as aforesaid.
5. The borrower agrees that notwithstanding any thing to the contrary therein OBC
may in its sole discretion refuse to disburse the loan until: (a) The borrower has paid his own contribution in full to the builder (i.e. the cost
of dwelling units less the loan) and
(b) Progress and need of construction justifies (OBC being the sole judge
thereof) the disbursement requested for.
(c) As authorized by the Borrower the builder shall hold, all the rights, title,
interests, claims of the borrower in respect of the dwelling unit and/or the
agreement in respect thereof and/or any money paid to or deposited with the
builder under the said agreement or any allotment letter in respect of the said
dwelling unit, for and on behalf of and in favour of OBC.
(d) The builder further agrees to total subrogation of borrowers right to refund of
all the moneys received by builder from the borrower to the right of OBC on
behalf of the borrower, in favour of OBC in any event in which such refund
becomes
due
and
payable
to
the
borrower
under
the
agreement/arrangement/executed made between builder and the borrower.
(e) The builder in particular agrees not to pay any amount on any account to the
borrower by way of refund or otherwise, in any manner whatsoever, without
the written consent of OBC.
(f) The borrower as well as the builder also agree that as soon as the dwelling
unit is completed and is fully paid for the mortgage/charge in favour of OBC
shall fasten on the said dwelling units and the same shall continue
(notwithstanding its allotment, completion and occupation) until the loan of
Oriental Bank of Commerce is fully repaid with interest and all other dues.
Page | 94
(g) The borrower as well as the builder also agree that the necessary
documents for creation of the charge shall also be executed within 15 days
of the building being complete / handing the possession of ready built up
premises purchased by the borrower.
6. All the movable and immovable assets of borrower including the said property,
mortgaged by the borrower, shall form part of the security for the housing loan
granted by OBC and as soon as the sale deed is executed by the builder, the
builder shall send the same immediately directly to OBC and the borrower shall
execute necessary documents for creation of mortgage of the house/property
immediately to Oriental Bank of Commerce as security for the housing loan. The
borrower shall also furnish all the necessary documents for the purpose of
registration.
7. If the borrower desires to withdraw from the scheme or if he fails to pay the
balance amount representing the difference between the loan sanctioned by
OBC and the actual purchase price of the house/property or in case of death of
the borrower, before the execution of the sale deed, the entire amount advanced
by the Oriental Bank of Commerce will be refunded together with interest thereon
to OBC by the builder forthwith. In the event of the builder canceling the allotment
of any member for any reason whatsoever the builder shall refund to OBC
forthwith the entire amount received from it together with interest thereon on
account of the said member.
8. If for any reason there is an increase in the cost of the dwelling unit, such
increase shall be paid and borne by the borrower and until such payment is
made OBC shall have the right to suspend further disbursement of the
sanctioned loan.
9. The borrower shall diligently and faithfully observe and comply with all the
rules/regulations and instructions of the builder and he shall comply with all the
requirements of OBC and he shall fulfil all his obligations under this agreement.
10. The builder and/or other occupants of the said property have given their consent
that OBC shall have lien on the house/property and that the borrower may furnish
the house/property as security for loan to be obtained from OBC and create
mortgage in favour of OBC.
11. The liabilities of the builder and the borrower shall not be affected in any manner
whatsoever in the event of the borrower ceasing to be a member of builder
notwithstanding anything to the contrary contained in any constitution, articles,
memorandum rules, byelaws, agreements, regulations, documents etc.
PROVIDED that in the event of the death of the borrower OBC may refuse to
disburse the loan if not already disbursed or refuse to disburse further amount if
only a part of the loan has been disbursed.
12. So long as the loan advanced by OBC or any part thereof is outstanding the
house property shall continue to be the security thereof and the builder shall not
part with any document of title pertaining to the property or hand them over to the
borrower although the borrower has paid all the dues and demands of builder.
13. The builder shall not exercise any right of re-entry in respect of the
house/property allotted to the borrower, whether or not such right has been
reserved to itself by builder expressly under any agreement with the borrower,
without making payments of all amounts due to Oriental Bank of Commerce in
the first instance and only thereafter the builder shall be entitled to deal with the
house property or realise the proceeds of the sale thereof.
Page | 95
In witness whereof the parties above named hereunto set their hands on the day, month
and the year first above written.
Witnesses:
1.
Signature of Borrower (First Party)
2.
Signature on behalf of builder (Second Party)
.
(Third Party)
Signature on behalf of Oriental Bank of Commerce
Officer
Branch Manager
Page | 96
ANNEXURE-18
TRIPARTITE AGREEMENT WITH GROUP HOUSING SOCIETY
This agreement made at ______ on this _____day of___________ between
(i)________________s/d/o__________________
Resident
of
______________________________ hereinafter referred to as the Borrower (which
expression shall unless excluded by or repugnant to the context be deemed to include, as the
case may be, his/her co-borrower, heirs, executors, administrators, assigns and legal
representatives) of the FIRST PART,
(ii) ______________ Co-operative Group Housing Society Ltd. and having its Registered
Office at ____________________________ represented by its President Shri/Smt.
___________________________
and
its
Secretary
Shri/Smt.
___________________________ both duly authorised to execute these presents on its
behalf by a resolution passed by its Management Committee at its meeting held on
______________ hereinafter referred to as the Society (which expression shall unless
excluded by or repugnant to the context be deemed to include its executors, administrators,
assigns) of the SECOND PART, and
(iii) Oriental Bank of Commerce, a body corporate constituted under the Banking Companies
(Transfer and Acquisition Of Undertakings) Act 1980, with its Head Office at Harsha Bhawan,
E Block, Connaught Place, New Delhi represented by its Branch Manager at Branch Office
__________________ hereinafter referred to as the Bank (which expression shall unless
excluded by or repugnant to the context be deemed to include its executors, administrators,
assigns) of the THIRD PART.
WHEREAS
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. ______________________________________, a piece
of land admeasuring about______________acres, situated at ____________________ for
the construction of dwelling units/flats etc. to be built at the cost of its members and to be
occupied by such members on leasehold / ownership basis and also for constructing other
buildings to house community facilities which shall be owned
by the Society in accordance with the layout plan sanctioned by the competent authority.
The Borrower had applied to the Bank for a loan to purchase a dwelling unit/flat allotted to him
by the Society for contributing towards the cost of the said dwelling unit/flat to be constructed
by the society.
The Bank on considering the application of loan made by the Borrower has sanctioned a loan
of Rs. _____________ (Rupees _________________________________) to the Borrower
on the terms and conditions agreed vide Loan Agreement dated _______________, one of
the conditions thereunder being that the Borrower shall mortgage, the dwelling unit/flat
allotted by the Society, in favour of the Bank. The Society has also agreed to render all
assistance to the Borrower/Bank to comply with this condition and in particular has agreed to
obtain/assist to obtain permissions from any person/authority as may be needed for purposes
of the execution of the said Mortgage in favour of the Bank.
NOW THIS AGREEMENT WITNESSETH AS UNDER:
In consideration of the Bank granting a loan of Rs. _________ (Rupees
____________________________) to the Borrower for making payment in respect of the
dwelling unit/flat constructed or to be constructed by Society and allotted to the Borrower
under its scheme, it is hereby agreed amongst the parties hereto as under:
Page | 97
1. The Bank will make disbursement of the sanctioned loan by making payment to the
Society directly by Cheque/Demand draft etc. on behalf of the Borrower as and when
demanded by the Society on the basis of the actual progress of the work connected with
the acquisition of the land/construction, subject to the Loan Agreement entered into
between the Borrower and the Bank and the covenants hereunder agreed to amongst
the parties hereto. Any payment made to the Society in pursuance of this agreement
shall be deemed to be a payment made to the Borrower and the Borrower shall in each
case be liable for the amount of the loan disbursed on his behalf to Society as though
the same had been disbursed directly to the Borrower. It is further agreed by the
Borrower that the Bank shall not be responsible or liable to ensure or ascertain the
progress of construction and mere demand for payment by the Society giving details of
progress of construction would be sufficient for Bank to effect disbursement as
aforesaid.
2. The Borrower will not further mortgage/charge/let out/part with the possession of the
dwelling unit/flat allotted as aforesaid to any person/financial institution for raising any
loan without the prior written consent of Bank.
3. The Society will maintain a separate account of the Borrower and adjust the payment
received by it from the Bank/Borrower against the cost of the particular category of
dwelling unit/flat applied by the Borrower and shall periodically send statement of a/c
pertaining to Borrower's account in the books of the Society to the Bank.
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 the Society and the
Borrower or make payments to the Society as requested. Bank shall not be responsible
for any delay or omission in disbursements of any kind whatsoever. The Borrower
alongwith the Society shall be responsible to follow-up with the Bank to make
disbursement in pursuance to this agreement and/or as per any agreement the
Borrower may have with the Society.
5. It is further agreed by the Borrower 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 disbursements aforesaid. Without prejudice to the above
and notwithstanding anything to the contrary contained herein, Bank may in its sole
discretion refuse to disburse the loan until:
i). The Borrower has paid his/her own contribution in full to Society i.e. the cost of the
dwelling unit/flat (including escalation, if any) less the loan sanctioned, and/or
ii). The Borrower has failed to provide the agreed security to the Bank, as agreed by
Borrower separately in the mortgage agreement (Annexure I to this agreement),
and/or
iii). The Progress of the construction justifies the disbursement requested (Bank being
the sole judge thereof).
6. The Society undertakes that the Title Deed/Sale Deed/Deed of Apartment in favour of
the Borrower by the Society shall be executed and shall be applied for registration
within ___________ days after the date of delivery of possession under intimation to the
Bank or within 30 days of allotment of the dwelling unit/flat, as the case may be. 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/ Deed of Apartment is executed and registered, the
Borrower undertakes 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.
Page | 98
8. The Society does not have any objection in creation of mortgage of the dwelling unit/flat
by Borrower in favour of the Bank and agrees to give the necessary consent/ no
objection as and when required.
9. The Borrower shall diligently and faithfully observe the terms of this agreement as well
as comply with all the rules, regulations, and bye-laws of the Society alongwith any
other documents or agreements executed by the Borrower with the Bank.
10.If for any reason there is an increase/escalation in the cost of the dwelling unit/flat, such
increase shall be paid and borne by the Borrower without any reference to the Bank or
this agreement unless otherwise agreed to by the parties to this agreement. Until such
payment is made, the Bank shall have the right o suspend further disbursement of the
sanctioned loan.
11.In the event of default by the Borrower in repayment of dues of the Bank, the Bank will
be entitled to sell the flats and the Society will have no objection to any such change and
it shall have to accept the purchaser of dwelling unit/flat as member of the Society.
12.The Society shall note the creation of mortgage on the relevant books & records of the
society and shall not transfer the dwelling unit/flat of the Borrower to any other member
of the society without the prior written consent of the Bank.
13.If the Borrower withdraws from the scheme of Society or in the event of cancellation of
Borrower's name by the Society or death of Borrower, the Society will refund the entire
amount standing to the credit of the Borrower (including Borrower's contribution) to the
Bank. The Bank shall refund the balance, if any, to the Borrower after adjusting the
entire outstanding dues of the Borrower with interest, costs and other amounts payable
by the Borrower to Bank. In any event in which any refund becomes due and payable
under the Agreement/arrangement executed/made between the Borrower and Society or
otherwise, the Society agrees not to pay any amount on any account to the Borrower by
way of refund or otherwise without the written consent of the Bank.
14.Both the Bank and the Society shall be under obligation to keep each other informed
and provide copies of any communication made with the borrower.
In witness whereof the parties above named hereunto set their hands on the day, month and
the year first above written.
Witnesses:
1.
Signature of Borrower (First Party)
2.
Signature on behalf of Society (Second Party)
President
Secretary
Signature on behalf of Oriental Bank of Commerce (Third Party)
Officer
Branch Manager
Page | 99
ANNEXURE-19
(LETTER CEDING SECOND CHARGE BY THE FIRST CHARGE HOLDER)
From ( First Charge Holder)
. .
. .
Date:-.
To
The Manager
BO:-.
Dear Sir,
Reg:
Letter ceding second charge over immovable property situated at
..in respect of housing loan facility sanctioned to
Sh./Smt. ..(Borrower / Mortgagor)
Please refer to your letter dated
We (mention the name of the first charge holder) do hereby
confirm that Sh./Smt..(hereinafter referred to as The Borrower /
Mortgagor )has created / agreed to create mortgages and charges in our favour in respect of
his
/
her
/
their
immovable
properties
situated
at
to secure our
..
..
(mention the facilities)
together with interest and other moneys payable by the Borrower / Mortgagor.
We do hereby agree that the said Borrower / Mortgagor may create second charge on his /
her
/
their
aforesaid
immovable
property
situated
at.in your favour to secure your housing
loan facilities:
.
..
(mention the facilities)
together with interest and other monies payable by the borrower. You may take necessary
steps as may be necessary to execute required documents / create securities in this
connection in your favour.
We further agree and undertake and confirm that we shall execute an agreement with you to
provide that the aforesaid securities created / or to be created by the Borrower / Mortgagor in
your favour will rank as second chare in your favour subject to the first charge created / or to
be created by the Borrower / Mortgagor on their aforesaid security in our favour.
Yours faithfully,
(FIRST CHARGE HOLDER)
Page | 100
ANNEXURE-20
(LETTER CEDING PARI PASSU CHARGE)
From (pari passu charge holder)
.
.
Date:-
To
The Manager
BO:-
Dear Sir,
Reg: Letter ceding pari passu charge over immovable property situated at
..in respect of housing loan facility sanctioned to
Sh./Smt. ..(the Borrower / Mortgagor)
We.(mention the name of the first charge holder) do
hereby agree and confirm that notwithstanding anything to the contrary contained in or
by virtue of the mortgages and charges created and or to be created by Sh. / Smt.
..(hereinafter referred to as The Borrower / Mortgagor) in
our favour in respect of the Borrowers / Mortgagors aforesaid immovable properties
both present and future to secure our:(mention the facilities)
together with interest and other monies payable by the Borrower / Mortgagor, the
mortgages and charges in our favour shall rank pari passu with the mortgages and
charges created or to be created by the Borrower / Mortgagor in your favour with
interest thereon and monies payable to you under the respective loan agreements,
sanction letters etc. for all purposes and intents.
We further agree and undertake and confirm that we shall execute an interse pari passu
agreement with you to provide that securities created by / to be created by the Borrower
/ Mortgagor 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, appropriation 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)

Page | 101
ANNEXURE-21
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
The Manager,
The Managing Director / Chairman
Dear Sir,
REG: HOUSING LOAN FACILITIES SANCTIONED BY ORIENTAL BANK OF
COMMERCE TO SH / SMT ON CREATION OF
2ND CHARGE ON HOUSE / FLAT.
Oriental Bank of Commerce has sanctioned following housing loan facilities to Sh./ Smt.
vide sanction dated .
i)
ii)
Sh. / Smt. . has agreed to create 2nd charge i.e.
charge subject to prior charges in your favour by way of registered / equitable mortgage
on
his
/
her
/
their
house
/
flat
situated
at
.in favour of Oriental Bank of
Commerce (hereinafter called the Oriental Bank) by deposit of title deeds. You have
also consented for creation of said 2nd charge in favour of the Oriental Bank vide your
letter dated .
We,
Oriental
Bank
of
Commerce
hereby
appoint
you
..(name of the addressee Bank / Institution), acting
through any of your officers, as agents, to accept deposit of title deeds by delivery or
constructive delivery from or on behalf of Sh. / Smt. .. to
create mortgage by deposit of title deeds in order to secure the above referred loan
facilities and moneys advanced or to be advanced by the Oriental Bank besides interest
and other charges due thereon. You are also authorized to further make entry in your
records in respect of the above deposit in favour of the Oriental Bank also. Please
confirm the creation of mortgage.
Thanking you,
Yours faithfully,
For Oriental Bank of Commerce
MANAGER
Page | 102
ANNEXURE-22
LETTER FROM PARI-PASSU/FIRST CHARGEHOLDER ACCEPTING THE AGENCY
OF OUR BANK
The Manager,
Oriental Bank of Commerce,
BO:
Dear Sir,
REG: OUR APPOINTMENT AS AGENT FOR ACCEPTANCE OF TITLE DEEDS
FROM
SH/SMT.
.FOR
CREATION
OF
REGISTERED / EQUITABLE MORTGAGE AS SECURITY.
Please
refer
to
your
letter
dated
.
We,
..accept and agree to act as agent of Oriental Bank of
Commerce for acceptance on behalf of your bank, of title deeds by delivery /
constructive delivery from Sh/Smt .. of his / her / their
immovable property bearing no. .(described
hereunder) with his / her / their intention for creation of registered / equitable mortgage
of the said property to secure loan facilities mentioned in your above referred letter (as
mentioned hereunder) and money advanced or to be advanced to Sh / Smt.
by your bank.
We, hereby confirm that we shall also duly enter the aforesaid deposit of title deeds in
our records and endorse the same to be deposited in favour of your bank also. We
further undertake that on adjustment of our loans, the said title deeds shall not be
handed over to the mortgagors Sh./Smt. .and
shall be returned to your bank or shall be retained by our corporation on behalf of your
bank till further instructions from you.
(i)
Loan facility
(ii)
Security Property: No.

situated at
(ii)
Title Deeds deposited: .

..
..
Thanking you,
Yours faithfully,
FOR ..
Page | 103
ANNEXURE-23
TO BE STAMPED AS AN AGREEMENT
INTER SE AGREEMENT
This agreement is made aton this .day of 20
between Oriental Bank of Commerce, a body corporate constituted under the
Banking Companies (Acquisition & Transfer of Undertakings) Act No.40 of 1980, having
its Head Office at E-Block, Harsha Bhawan, Cannaught Place, New Delhi -110 001 and
amongst
other
branches
a
branch
at(address)
(hereinafter
referred to as The Oriental Bank) of the first part.
AND
(Name of
Bank / Institution; its constitution, address of Regd. Off)
(hereinafter referred to as
.) of the Second part.
And
(Name of the Borrower / Mortgagor)

(hereinafter referred to as The Borrower / Mortgagor) of the third part.
Note: The expressions The Oriental Bank, . and The
Borrower / Mortgagor, unless repugnant to the context, shall include their assigns,
nominees, executors, administrators, successors and legal heirs.
WHEREAS at the request of the Borrower / Mortgagor aforesaid, the Oriental
Bank and the Second Party have granted / agreed to grant the following housing loan
facilities to The Borrower / Mortgagor (hereinafter referred to as The credit facilities):(Indicate all facilities to be covered by pari passu / first / second charges)
Institution
Oriental Bank
Facility Sanctioned
Limit/Amount
AND WHEREAS the Borrower / Mortgagor has created charge on his/her/their

house/plot
situated
at
..in favour of the Second Party vide
mortgage created / executed on ..as security for the repayment of the loan
amount of the aforesaid credit facilities, extended by the Second Party and interest,
cost, expenses, and other charges payable to the Second Party in terms of loaning and
security documents executed by the borrower/mortgagor in favour of the Second Party.
Page | 104
AND WHEREAS the Borrower / Mortgagor with the consent of the Second Party has
also created charge on the same house / flat of the Borrower/Mortgagor situated at
.in favour of the Oriental Bank also vide Regd./
registered / equitable mortgage created / executed on .as security for the
due repayment of the loan amount of the aforesaid credit facilities extended by the
Oriental Bank along with interest cost, expenses, and other charges payable to the
Oriental Bank in terms of loaning and security documents executed by the borrower /
mortgagor in favour of The Oriental Bank.
AND WHEREAS it has been agreed by and between all the parties that the charges as
aforesaid created / to be created in favour of the Second Party and the Oriental Bank *
stand pari passu to each other or ** charge of the Oriental Bank as second charge
holder is subject to and sub servient to the charge of the Second Party as first charge
holder.
AND WHEREAS pursuant to the said agreement by and between the parties with a
view to defining rights and obligations interse, the parties have agreed to enter into this
agreement.
NOW THIS AGREEMENT WITNESSETH AND THE PARTIES AGREE TO AS
FOLLOWS:
1. That the Second Party and the Oriental Bank at the request of the Borrower /
Mortgagor have granted / shall grant / continue to grant to the Borrower / Mortgagor
the credit facilities aforementioned.
2. That notwithstanding any thing to the contrary contained in or by virtue of the
security documents, the charge created aforesaid in favour of the Oriental Bank shall
rank * pari passu or ** as second charge subject to and sub-servient to the charge
created in favour of the Second Party as first charge holder.
3. That 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 there from the cost, charges and expenses incidental to such realization
shall be appropriated towards or in satisfaction of indebtedness of the borrower /
mortgagor in respect of credit facilities * in the first instance due and outstanding to
the Second Party (the first charge holder) and thereafter the balance, if any, shall be
available for and be appropriated to the outstanding indebtedness or liabilities of the
borrower / mortgagor in respect of the credit facilities as aforesaid availed from the
Oriental Bank or ** by the Second Party and the Oriental Bank as pari passu charge
holders proportionately on pari passu charge bases.
(* /** Delete whichever is not applicable)
Such indebtedness means the amount outstanding under the said credit facilities and
the interest due thereon upto the date of realization of the security whether actually
debited or not to the said accounts together with any cost and charges whether actually
debited or not.
4.That the Second Party and the Oriental Bank shall give each other the information
and other periodical data received from the borrower /mortgagor from time to time and
Page | 105
shall keep each other informed about the total outstanding dues from the borrower /
mortgagor from time to time.
5.
That all the moneys received by the Second Party or The Oriental Bank
(a)
by realization of the mortgaged property from the insurers in respect of the
insurance of the mortgaged / charged security and / or
(b)
in any other manner from the mortgaged/charged security,shall be held
by the Second Party and / or the Oriental Bank as the case may be, for
and on behalf of each other and shall be paid and appropriated in the
manner as indicated and agreed to above in these presents.
6.
That the Second Party and the Oriental Bank shall inform each other before
taking any steps to take possession or realization 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 present.
7.
That the title deeds of the mortgaged properties deposited by the Borrower /
Mortgagor with the Second Party with the intention of creating registered / equitable
mortgage of the said property as security for the credit facilities granted / to be granted
by the Second Party and the Oriental Bank shall remain in the custody & possession of
the Second Party on behalf of both the charge holders as if the said title deeds are
deposited by the Borrower / Mortgagor with both the secured creditors / charge holders.
8.
That in case the dues of the Second Party as one of the pari passu charge
holders or as the first charge holder, as the case may be, are cleared in full by the
borrower / mortgagor then the title deeds of the mortgaged property deposited by the
borrower / mortgagor with the Second Party shall be transferred by the Second Party to
the Oriental Bank as other pari passu charge holder or as the second charge holder and
shall thereafter be retained in the possession and custody of the Oriental Bank for the
continued registered / equitable mortgage of the said property as security in favour of
the Oriental Bank and for the credit facilities granted / to be granted by the Oriental
Bank to the borrower / mortgagor.
9.That in case the dues of the Oriental Bank, as one of the pari passu charge holders or
as the second charge holder are cleared in full by the borrower / mortgagor then the title
deeds of the mortgaged property deposited by the borrower / mortgagor with the
Second Party will continue to remain deposited in possession and custody of the
Second Party as the other pari passu charge holder or first charge holder, as the case
may be, for continued registered / equitable mortgage of the said property as security in
favour of the Second Party for the credit facilities granted / to be granted by the Second
Party to the borrower / mortgagor.
10.
That, on clearance of the dues in full of both the secured creditors and charge
holders, the title deeds of the said property will be returned by the Second Party or the
Oriental Bank, in whose custody and possession the same may be to the borrower /
mortgagor who had initially deposited the said title deeds with the Second Party.
11.
That it is stipulated for clarification that in case of realization of any amount
against the subject property from insurance company or from sale / disposal of the said
Page | 106
property, any amount remaining after clearance / satisfaction of the debts of both the
Oriental Bank and the Second Party will be paid to the borrower / mortgagor by the
secured creditor who may be holding the balance amount.
IN WITNESS WHEREOF the parties here to have executed these presents, the day,
year above written.
()
(..)
(Borrower / Mortgagor)
Page | 107
ANNEXURE-24
CONFIRMATION LETTER FOR DEPOSIT OF TITLE DEEDS BY THE BORROWER
TO THE PARI-PASSU/FIRST CHARGE HOLDER
Dated
(to be dated subsequent to date
of entry of mortgage in favour
of Oriental Bank of Commerce)
From (Mortgagor):
Sh. / Smt
.
.
TO:
The Chairman / Managing Director,
.
.
(Pari passu / first charge holder)
Dear Sir,
REG: CREDIT
FACILITIES
SANCTIONDED
TO
SH./
SMT
I / we have already deposited with you in your office on

.(date of deposit) the under noted 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 allowed or
agreed to be allowed by you to us:i)
ii)
(loan facilities of pari passu / first charge holder)
The Oriental Bank of Commerce has also at my / our request sanctioned to me /
us the following housing loan facility:i)
ii)
(loan facilities of Oriental Bank of Commerce)
3.
Your corporation was authorized by the Oriental Bank of Commerce to accept
the title deeds (mentioned herein) by constructive delivery for creation of registered /
equitable mortgage by me / us in favour of Oriental Bank of Commerce and I / we
confirm having agreed with you on.. .that the title deeds of my / our
aforesaid immovable property already deposited with you on .. shall
continue to be held by and with you as if deposited with Oriental Bank of Commerce
Page | 108
also as security for the repayment of the loan facilities and moneys advanced / or to be
advanced as aforesaid by the Oriental Bank to us and interest, costs and charges due
thereon.
LIST OF TITLE DEEDS
1)
2)
PROPERTY COVERED
1)
2)
together with all buildings and other structures, fixtures and fittings, constructed, erected
or embedded thereon or to be constructed, erected or embedded thereon.
Thanking you,
Yours faithfully,
(Mortgagor)
C.C: Oriental Bank of Commerce

BO:-
Page | 109
ANNEXURE-25
MEMORANDUM OF ENTRY IN TITLE DEED REGISTER OF ORIENTAL BANK OF
COMMERCE IN CASE OF SECOND CHARGE OVER THE PROPERTY
MEMORANDUM OF ENTRY IN CASE OF
MORTGAGE BY DEPOSIT OF TITLE
DEEDS BY CONSTRUCTIVE DELIVERY
MEMORANDUM OF ENTRY
On the day of ..20 Sh / Smt (name & address of the
mortgagor).. (hereinafter referred to as
The Borrower / Mortgagor) created pari-passu/ first charge over his property located
at
in favour of ( name & address of the

pari passu/ first charge holder) with the intention of and in order to create security by
way of mortgage by deposit of title deeds on the Borrower / mortgagors immovable
properties together with the buildings and other structures, fixtures and fittings,
constructed, erected or installed or to be constructed, erected or installed thereon for
securing the due repayment, discharge and redemption by the Borrower / Mortgagor to
pari
passu
/
first
charge
holder
for
its. (details of loan limits of pari
passu / first charge holder) together with interest,
additional interest, further interest,
interest tax, liquidated damages, compound interest, commitment charges, cost,
charges, expenses and other monies payable under the respective loan agreement /s.
The Borrower / Mortgagor, Sh / Smt .on today
accorded and gave oral consent to create pari passu/ second charge over the
mortgagors
immovable
properties
already
charged
with
(name & address of pari-passu/ first
charge holder) together with all buildings and structures erected or to be erected
thereon (hereinafter collectively referred to as the said immovable properties) as
security also for the due repayment, discharge and redemption of Housing Loan of
Rs..granted to the Borrower / Mortgagor by Oriental Bank of Commerce
together with interest, additional interest, further interest, interest tax, liquidated
damages, compound interest, commitment charges, cost, charges, expenses and other
monies payable under the loan agreement /s as amended from time to time.
Signature of the Officer/Manager
Page | 110
Annexure-26
PROJECT SPECIFIC PROCESS NOTE FOR HAVING
TIE-UP ARRANGEMENT WITH BUILDERS.
REGION________________________
S.No.
1.
Particulars
Name of the Builder
Details
Address : (Office)
(Project Site)
2.
Constitution
3.
Names of Promoters/Directors/Partners
4.
Checking of Defaulters list of
Bank/RBI/CIBIL etc.
5.
Website and e-mail details

(Keep website downloads on records)
6.
Previously completed projects (Through
web and local enquiries)
7.
Previous /existing Bankers with whom

Tie-up are made
8.
Membership with local Association of

Builders
(Give details)
9.
Main Bankers of the Builder

Name of Bank
/Branch/
Title of A/c/
A/c No./
Branch Tel. Nos/
Verification details.
Specific project for which the Tie-up is
10.
Page | 111
proposed.
Project details:
Number of Houses/flats/ Unit Cost/
Total Project Cost/
Project
Financing
Bankers
any(details)/Amount of finance/
Duration of Project completion
11.
if
Plan Approval Details :

Statutory Clearances :
12.
Name of Legal Retainer / Advocate

NEC/Index Search / Legal Opinion details
13.
Office and Project Site Visited By :
Observations in detail
14.
Any Other Observations
Signature of appraising officer
Signature of Regional Head
Page | 112
Annexure-27
REVISED MODEL LEGAL OPINION
The Manager,
Oriental Bank of Commerce,
_______________ Branch
_____________________.
Dear Sir,
Reg : Title Opinion on the property situated at ____________________
With reference to your letter No.____________ dated___________, I, on the basis of
the copies of title deeds forwarded to me pertaining to the said immovable property and
the other information submitted by you, have conducted a detailed search and
investigation and submit my report as under :
1. Name(s) and Address(es) of the Mortgagor(s) / Title holder(s)
2. Description of immovable property
Plot No. / Property No.
Area
(in Location
sq.yds./sq.mtrs/sq.ft.
/ acres/hectares)
Boundaries
North
East
South
West
3. The Chain of title deeds scrutinized by me
As per Annexure
herewith
A2
attached
i) Search in Sub-Registrars Office

(Location of property of the sub-district within which the
property is located and the address of the registering
officer. In case the property is situated in more than one
sub-districts/districts, the particulars of all the concerned
sub-districts/districts and address of the registering
offices to be given)
ii) Search and Investigation
(The search in the records such as index No.1, Index
No.2, Book No.1/Supplementary Book No.1 should be
made atleast for the past 13 years to trace any
encumbrance is created on the property.
A brief
narration may be given on the route and chain of title to
the extent of complete chain and how the title is
conferred on the mortgagor.
The details of the
books/indexes searched by Advocate to be stated. In the
event of any break in the chain of title, the details thereof
specifying how the break in the chain of title took place to
be stated and opinion as to whether it would vitiate
Banks creation of mortgage over the property be given.
In case of any mortgage, charge or encumbrance
subsists over the property, the same may be highlighted
so that the Bank shall avoid the said property. Confirm
Page | 113
and state that the original title deeds submitted are

originals registered before the Registrar of Assurance)
and proper stamp duty has been paid.
III ) Whether the property is ancestral and/or under joint
ownership.
If so, details of the co-parceners /Karta and/or the coowners. The respective shares should be incorporated
specifically
IV)
Minors delinquent, unsound, untraced persons
interest
(Any minors interest if involved in the property proposed
to be mortgaged or any other claims. If minors interest
is involved what precautions are to be taken to protect
Banks interest as a mortgagee to be stated. Please note
that if the property belongs to a minor, permission of
Court is generally required to create the mortgage over
the property).
V) Documents pending for registration
(The enquiry is to be made whether any document
creating mortgage, charge or encumbrance is pending
for
registration
in
the
concerned
SubRegistrars/Registrars office are to be stated. If so, full
details of such charge etc. of charge holders should be
specified)
5. Whether Urban Land (Ceiling and Regulation) Act
1976 is applicable in State where the property is
located.
If applicable whether the immovable
property(ies) fall(s) within the purview of the Act,
verification and investigation should be made under
Section 26, 27 and 28 of the Act to ensure that
mortgagor(s) has / have obtained necessary
permission from the competent authority under the
Act.
Documentary evidence showing such
permission is obtained has to be attached with the
report.
6. Whether the property is acquired under the Land
Acquisition Act, 1894 and applicability of other State
Legislations.
7. Leasehold immovable Property (where land /
building is leasehold, please verify the terms of
lease, whether any permission/NOC from the
lessors / competent authority is required for creation
of mortgage of such leasehold property and advice
the precautions to be taken obtaining such property
Page | 114
in mortgage)
8. Investigation under Income Tax Act 1961(Any
permission of the concerned Assessing Officer
under any of the provisions of Act is required for
creating mortgage or any Certificate to be submitted
to the Bank to show that no dues are outstanding to
Income Tax Deptt.
9. Investigation in regard to agricultural land

(Investigate and search the necessary records etc.
with specific reference to the land if it is surplus,
self-cultivated, if consolidation of holdings /
acquisition proceedings etc. is in progress in the
area, whether Government loan / any loan raised
against the land and details about the charges /
encumbrances may be specified, specifically with
reference to the Agricultural Land Laws.
10. The details of the certified copies of the revenue
records obtained to confirm that the property in
question has been mutated and no dues are
outstanding against the Mortgagor.
11. Any other special enactment which is applicable to
the property proposed to be mortgaged and affects
the title.
12. If it is a property owned by the Company the
additional safeguards like search before the
Registrar of Companies to be obtained be stated.
13. Whether documents given as chain of title deeds
inspire any doubt / suspicion. Is it curable how?
14. Reason as to why equitable mortgage is not being
created with the branch, where the property is
situated?
15. Whether any bar to create mortgage as in case of

agricultural land in Delhi? Any CLU / house tax /
notification of land vesting in municipal authority?
16. Whether any restriction on sale of property? e.g. J &
K, Uttaranchal & HP etc.
17. Whether any approvals / clearances required or
obtained, detail?
The following documents in addition to documents mentioned in Chain of documents in
original as well as copies as the case may be alongwith additional documents
Page | 115
mentioned above, varying from case to case may also be obtained for creation of valid
equitable mortgage by deposit of the title deeds (varying from case to case).
Particulars
Comments of Advocate
1. House Tax assessment order pertaining to
property to be mortgaged.
2. Site Plan (sanctioned)
3. House Tax receipt pertaining to property to be
mortgaged
4. Self assessment return form
5. Electricity / Water Bill
6. Copy of PAN Card / Driving License /
Passport etc.
7. Income Tax returns
8. Affidavit of mortgagor as to how he/she is
connected with the account in which he / she
is furnishing his / her property as security.
9. In case of property of Builders, in addition to
the GPA / SPA, Collaboration / Builders
Agreement, the PAN No. & ITCC of Builder,
his history, copy of some regd. Documents
and endorsement on the original sale deed (if
retained by original owner / builder) be made,
if possible, so that previous document even if
retained by the Owner / Builder cannot be
misused.
10. In case the property to be mortgaged is
related to the company, then relevant
Resolutions along with copy of the minutes,
MOA / AOA and ROC record may be
obtained
11. . In any case where ever the previous original
title deed is missing or retained by earlier
owner, the original title deed be seen &
endorsed or an affidavit be obtained from the
person retaining the original title deeds, that
he will not misuse it.
12. Affidavit that mortgagor deposited title deeds
with intention, has deposited all documents,
would not misuse any document to detriment
of bank etc., may also be obtained.
13. The stamp duty payable on Oral Assent (if
applicable)
14. NOC / No Dues certificate from lessor / land
authority.
15. In case of leasehold property, the remaining
period of lease, any provision for further
renewal of lease etc. shall be sepecifically
Page | 116
mentioned. The receipt for upto date payment

of lease rent shall be obtained.
16. In case of HUF / Trust, appropriate affidavit
be obtained & further necessary documents
be also obtained. In case of Trust properties,
it should also be mentioned whether
permission from Charity Commissioner or any
other competent authority is required to be
obtained.
17. In case of flat belonging to Cooperative
Housing
Society,
necessary
further
documents i.e. Share Certificate, No
Objection Certificate from Society after
verifying the related records and receipt for
the payment of upto date dues to the Society
be obtained.
18. Since Central Registry u/s 20 of the
SARFAESI Act has been created and
notification No.F-56/5/2007-BO-11 dated 31st
March 2011 has been issued, inspection of
records of central register through the website
of the Central Registry shall also be made by
the advocate concerned and the same shall b
e stated in the opinion.
Page | 117
Annexure - 28
CERTIFICATE
I hereby certify that I have personally visited the Office of Registrar / Sub-Registrar /
Revenue Authorities and also search the records of Central Registry created under Section
20 of the SARFAESI Act, 2002 and personally searched and verified the information
furnished in this report. I have compared the Sale Deed dated ________ given to me with
the copy of it available in the Office of Sub-Registrar and have found that both are tallying
with each other. I also certify that the title deeds in respect of the captioned properties are
genuine, original and properly executed. The statement and other information given in the
report are correct and true. I certify that Mr. / Ms. / M/s._________________________
have got a valid, clear, absolute and marketable title over the property shown above. If Mr.
/ Ms. / M/s______________________________ personally present (alongwith identity
proof) and deposits the title deeds in original or as mentioned in Schedule I along with
documents mentioned hereunder, with intention to create equitable mortgage, it will satisfy
the requirements of creation of equitable mortgage. The following person/s should be
present personally (alongwith identity proof) to deposit the original title deeds with your
Bank / Branch for creation of equitable mortgage :
..
The following documents shall be obtained at the time of creation of mortgage.

1.
2.
Yours faithfully
Signature
of
the
Empanelled
Advocate
Place : _______________
Date : _________________
Chain of Title Deed
Sr. Registered / Vendor / Vendee / Date Nature
No. Unregistered Transferor Transferee
(Original/Copy)
Sale Deed/ Lease
Deed / GPA / SPA
/ Will /
Relinquishment
Deed
Area / Floor
alongwith
site plan &
Boundings
Signature of the Empanelled Advocate

Page | 118
CERTFICATE BY ADVOCATE IN LOAN A/C _________________

(To be obtained after execution of the documents and before release of the financial
assistance)
The following facilities have been sanctioned to the captioned borrower:-
Nature of facility
1.
Sanctioned amount / limit
Documents obtained
2.
3.
*Indicate the nature of facility sanctioned i.e. Cash Credit, Bill Facility, Term Loan,
Packing Credit etc.
I visited the branch today the ______________20 _ and verified the documents of the
title as given in Legal / Search Opinion dated : ________________in respect of the
Property
bearing
No._____________
situated
at
____________________
_______________________________________ and bounded on the East by :
_________________, West by : _____________ North by:_______________ and
South by :______________ deposited by the borrower / guarantor Sh /
Smt._________________________________ to create equitable mortgage in the
aforesaid facilities and certify that the documents delivered to the Branch for creation of
equitable mortgage as mentioned in the mortgage register are the Original and genuine
documents constituting complete chain of title deeds and I do not inspire any doubt or
suspicion. I further, certify that the documents are not coloured Xerox copies of the
originals.
I have also examined the aforesaid documents obtained in the abovementioned
account(s. Keeping in view of the terms of sanction and in accordance with enclosed
check list, I also certify that documents obtained by the bank shall cover all the facilities
/ securities. The documents are duly stamped and are enforceable before the Court of
Law having regard to the terms / conditions of the sanction.
Yours faithfully
Signature
of
the
Empanelled
Advocate
Place : _______________
Date : _________________
A/c______________________________________ B/O_______________________
Page | 119
CHECK LIST DOCUMENTATION

GENERAL
1.
Comments of
the Advocate
Borrowers power for availing loans as per provisions in the

following documents
(a) Memorandum and Articles of Association
(b) Consent of General Meeting
(c) Board Resolutions
(d) Any other document
(Specify)__________________________________________
2.
Each facility is supported by loan documents and security

documents/security of loan cum security documents. All other
documents as prescribed or relevant are obtained.
3. Standard loan documents are properly filled up /loan documents
drafted fulfils the requirements as per terms of sanction
(including clauses relating to interest, security etc.).
All
inapplicable clauses are deleted & applicable retained.
4. GUARANTEE
When given by Co., whether object clause permits, the
requirements under Sec.295 and Sec.372A (if applicable) are
complied with.
5. SECURITY
Security documents are obtained in terms of sanction. Mortgage
creation is properly done.
6. STAMPING
Stamping is appropriate and as per rate in force.
7. EXECUTION
Loan documents are duly executed by authorised persons /
common seal duly supported by resolution as required under
Article of Association.
The documents are executed by all the executants.
8. ATTESTATION
Wherever required, the same has been done.
9. REGISTRATION
Registration if required is completed.
10. Particulars of charge / modification of charge are duly filled up
and filed in time with ROC.
11. Section 20 of SARFAESI Act Registration of all the properties
charged / mortgaged has been done with the Central Registry.
PLACE : _____________
DATE : ______________
Advocate
Signature of the
Page | 120
Annexure - 29
ROLE OF ARCHITECTS / VALUERS ON PANEL OF THE BANK ROLE OF
VALUERS
1. Field verification of the property to mortgaged with the Bank. The field verification
would specify:
a)
b)
c)
d)
e)
f)
The date of visit,

Persons contacted during the visit
Details of the property verified
Mapped location of the property
Whether the property is self occupied or given on lease/rent.
In case of rented property valuation shall be done on the basis of 11 years
lease rentals.
g) Area in Sq ft./yards/mts.
h) Type of construction
i) Market and Realizable Value of the property
j) In case of built-up property, the valuer will certify that construction of the
property is as per sanctioned plan and completion certificate has been
obtained from the competent authority. The valuer will also certify that
residential property is not being used as commercial property.
2. Builder Check: In case of flats to be purchased from the builders, the valuer shall
also submit a report regarding the credentials of the Builder, details of the project
completed/ in progress of the Builders and his reputation.
3. The certificate issued by the Valuer should also contain an affirmation that
property has been valued for Bank Loan Purpose.
Page | 121
Annexure-30
Note: This is a model Process Note which is illustrative but not exhaustive, that may be
amended as per the requirement of the particular proposal by the field functionaries.
MODEL PROCESS NOTE
ORIENTAL BANK OF COMMERCE
Branch Office,______________________
MEMORANDUM TO THE ____________________________
Date:
FOR APPROVAL
Date of receipt of proposal at the branch
Date of submission of proposal to Regional Office
Date of submission of proposal to Corporate Office
Date of raising query, if any, by the Corporate Office
Date of receipt of the query
1.
BORROWERS PROFILE
Name of borrowers
Constitution
Branch/Region
Classification of Advance
Asset Classification
Credit Rating
CIBIL Rating
(Transunion & Personal
Score)
Date of birth of applicant
Memorandum for
Residence
Works
Banking arrangement
Dealing with our bank
since
Page | 122
2.
DETAILS OF FACILITY
Nature of Existing
Facility
Limit
Housing
Loan
Fresh
Total
3.
Present
O/S
Proposed
limit
Irregularity,
if any
Present
ROI
(`. in Lacs)
Proposed
ROI
APPLICANTS PROFILE IN BRIEF
4. VALUE OF ACCOUNT
5.
CREDIT FACILITIES SANCTIONED BY OUR / OTHER BANKS
The Credit facilities have been sanctioned to Group concern as under:

(`. in crores)
Name of the Nature
of Sanction Present Rate
of Asset
Group
Limits
ed
O/s
Interest
Classification
Concern
Amount
6.
PRESENT PROPOSAL IN BRIEF
The present proposal is for sanction of a fresh Housing Loan of `______ in favour of
________ for purchase of a residential property at _________ at a total cost of `_____.
The ______________ has been recommended for consideration Housing Loan of
`____ with following deviations, if any.
S.No.
1.
2.
Particulars
Norms
Deviation Recommended
7. A) DETAILS OF PROPERTY (FLAT)

The borrower has proposed to purchase property situated at ____________ measuring
carpet area of ___ sq. ft along with all other amenities having purchase price of `____
(excluding registration cost).
The Flat/Apartment is to be purchased from _________________________
B) ADVOCATES OPINION
C) VALUATION REPORT
Page | 123
8. REPAYMENT PERIOD
The repayment period has been computed as under:
Date of birth
Max. Repayment period permitted up to 70 years
Residual repayment available
Maximum permissible repayment period
Keeping in view of above we may permit maximum repayment period of ____ months
including moratorium period of ___ months.
9. ASSESSMENT OF TERM LOAN (HOUSING)
The details of the total income of the borrowers are as under:
Particulars of income
Financial
20__
Year Financial
Year20__
(`. in lacs)
Average of
2 FYs.
Income from salary

Income from Business
Income from other sources
TOTAL
1) On Margin criteria
Total Cost of the Flat/House

Margin
MPBF
2) Net Take Home Criteria
S.No. Particulars
a.
b.
c.
d.
e.
f.
g.
h.
i.
j.
Borrower Borrower Borrower Borrower

Name
Name
Name
Name
Age
Repayment Years
Gross Annual Income
Gross Monthly Income
Net take Home(%age)
Net take Home
Monthly Net take Home (d-f)
Monthly Deductions
Fund Available for EMI (g-h)
EMI per Lac
MPBF
Total Loan eligibility= `_________
Page | 124
Hence, on the basis of whichever is less criteria the maximum permissible loan in this
case shall be ` _____
10. RECOMMENDATIONS FOR MPBF
The ____________ has recommended loan limit of ` _____. In view of the above
computation, the maximum permissible limit comes to ` ____ say `____ on the basis of
_______________. As such we may consider home loan limit of `_____ in favour of
applicant.
The following assumption/deviation has been taken into account on the basis of
recommendation for deviation received from ___________
11. OBSERVATIONS OF THE PRE- SANCTION VISIT
12. RBI /BANK POLICY ON FINANCING INDUSTRY:
There are no restrictions as per RBI/Banks policy guidelines for such type of advance.
Our Banks policy also states to consider proposed loan on usual terms and conditions
and no restriction is imposed.
13. ANY CONCESSION/RELIEF BY WAY OF MARGIN /COMMISSION/ INTEREST.
Particulars
Norms as per scheme
Deviations / concessions sought
14. OUR OBSERVATIONS ON RECOMMENDED DEVIATION

a)
b)
15. RECOMMENDATIONS
In view of the foregoing and favorable recommendations of ________________ we
may, if approved, convey our sanction with deviation (if any) for housing loan of Rs
_____ on following terms & conditions:Deviations (if any)
Particulars
Norms
scheme
as
per Deviations / concessions recommended
All other terms and conditions & undertakings as detailed in Model sanction letter
be incorporated in process note.
Page | 125
(xxxxxxx)
Designation
(Deptt.)
(xxxxxxxx)
Designation
(Deptt.)
(xxxxxxxx)
Designation
(Deptt.)
The proposal was placed and discussed in the Credit Approval Grid of the _____
in its meeting held on ---------
Signature
Designation
Page | 126
Annexure-31
Note: This is a model Sanction Letter which is illustrative but not exhaustive, that may
be amended as per the requirement of the particular proposal by the field functionaries.
MODEL SANCTION LETTER

Branch Office,______________________
Note: The covering letter addressed to party conveying sanction of home loan shall
incorporate the following:
Date:____________
TERMS & CONDITIONS OF SANCTION
Name of Borrower
Branch/Region
Date of sanction
Memorandum for
(A)
Deviations
Particulars
Norms as per scheme
Deviations approved
(B) Terms of Sanction

Nature of Facility
Amount of Loan
Classification
Security
Rate of Interest
Term Loan - Fresh Housing Loan

` ____ (Rupees _______________ only)
Housing Loan - Priority/Non priority Sector
Registered/Equitable
Mortgage
of
_________
situated
at
_________________________ to be purchased from ______________
at a purchase price/cost of `_____.
The Branch shall ensure to create the valid registered/equitable
mortgage in favour of the bank as per the legal opinion of bank's
counsel.
(During Construction Period, in the absence of E.M, Tripartite
Agreement between Builder, Borrower and the Bank be made).
Base rate + ___% = ____% p.a. (floating) (Present Base Rate is
____%) with monthly rests subject to changes in base rate / Spread
announced by the Bank / RBI from time to time.
Page | 127
Penal Interest @ 2% p.a. over & above the applicable rate shall be
charged for irregular amount and for the period of irregularity.
Intimation of change in Interest Rate:The borrower shall be deemed to have notice of changes in the rate of
interest whenever there are changes in Base Rate either increase or
decrease in interest rates. By display of Base Rate on the Notice Board
of the Branch or published in news papers or made through entries of
the interest rate charged in the passbook/statement of account furnished
to the borrower and the borrower is liable to pay such revised rate of
interest.
Margin
(Minimum ____%)
Process Fee
Bounced
cheque/ECS/NACH/
or SI dishonours:Repayment
Schedule
Disbursement
Schedule
Insurance
Inspection
Prepayment penalty
In addition, Bank shall have a right to change the spread (above

Base Rate) on reset date.
__ %. The borrower shall contribute margin / the difference of loan
amount and purchase price, before release of the loan.
0.50% of the loan amount with max. ceiling of `.20,000/- + ST
A penalty of Rs 250/- + service tax will be charged for every bounced
cheque/ECS/NACH or SI dishonors related to payment of EMI. The rate
may vary from time to time.
a) The loan shall be repaid in ___ EMI of `. ____ each commencing
from ___ months. The instalment amount may vary from time to time
on the eventuality of changes in our base rate.
b) The accrued monthly interest shall be served in the first week of
following month, during the moratorium of ___ months.
c) Moratorium period -___ months from the date of first disbursement.
A. The payment shall be made as per demand schedule of the
builder/Vendor ____________________, directly through Demand
Draft after obtaining requisite margin from the borrower.
B. The cost of registration expenses shall be released in consultation
with Banks advocate at the time of registration of the flat.
The immovable/flat shall be got insured under agreed bank clause. The
insurance premium shall be borne by the party.
The flat shall be inspected by Bank Official on half-yearly or oftener on
irregular interval with prior intimation to the party. The party will
authorize the bank officials to conduct such inspection.
NIL
GENERAL TERMS AND CONDITIONS

1. Prior to release of facility branch shall ensure that a fresh search certificate cum
legal opinion be obtained from Banks panel advocate confirming that the requisite
search has been made in the books of registrar and the builder has derived the right
to sell / ownership to execute agreement to sale in favour of subject borrower.(if
applicable)
Page | 128
2. A fresh valuation certificate be obtained from bank's penal valuer, confirming that the
valuation is equal to or more than the present valuation of immovable property. .(if
applicable)
3. Prior to release of facility branch shall ensure that all the documentation formalities
are completed and mortgage documents is obtained as per the directives of
advocate. Documents shall be got vetted from the Bank's legal retainer. BCC shall
be submitted within 15 days of disbursement of the credit facilities.
4. Prior to release of facility a letters of declaration from the sellers and the borrower
that the said property is not subject to any charge/lien to any bank/ financial
institution / authority and the society and (i) borrower has not raised any loan against
the said flat, (ii) the said plot/flat is not located in an unauthorized colony (iii) that the
said plot /flat is for residential use and shall not be used for commercial purpose.
5. Prior to release of credit facility, the branch shall ensure that the proposed
residential property is in conformity the applicable statutory/non statutory and
regulatory guidelines applicable to the project. An affidavit cum undertaking be
obtained from borrower that the built up property has been constructed as per the
sanctioned plan and /or building bye laws. Architects Certificate in this regard shall
also be obtained.
6. The borrower shall during the entire currency of the loan, maintain the house in good
condition at his own cost and keep the same free from all encumbrances, pay all
taxes and other statutory dues and that he will permit any representative of the bank
to inspect the property from time to time at the banks option/discretion with advance
intimation to the borrower.
7. The Branch shall obtain ECS/NACH/SI/auto collection procedure from operative
account of the borrower for recovery of EMI from the borrowers.
8. All other conditions as issued by Head Office vide Circular No.
Dt.
pertaining to above scheme / loan shall strictly be complied with.
9. The branch may also explore the possibility to obtain Group Secure Scheme (GSS)
in the captioned case to safeguard the loan.
10. The terms of Central Registry System communicated vide H.O. Circular no.
HO/RMD/70/2014-15/860 dated 30.01.2015 shall be meticulously complied with by
Branch.
11. All other undertaking as per Annexure A shall be obtained and other conditions as
per Annexure B shall be duly complied with.
Branch Manager ________________
Branch Office __________________
Page | 129
ANNEXURE A
VARIOUS UNDERTAKINGS TO BE OBTAINED FROM THE BORROWER ON

LETTER PAD
The branch shall obtain suitable undertakings from the borrower with regard to
the following:
1. The names of Borrowers do not figure in any list of defaulters circulated by RBI or
any Bank and Financial Institution nor their names as partners/directors appear in
caution list issued by RBI/ECGC/DGFT etc.
2. That all required Statutory and/or Regulatory permissions or guidelines from local or
other competent authorities have been obtained (as applicable).
3. An undertaking shall be obtained from the borrowers (mortgager) that no dues of tax
are outstanding against them.
4. To issue appropriate undertaking / affidavits / certificates as the Bank may require
from time to time certifying that the funds comprising of entire amount of loan /
facility / sum due / amount outstanding in the account have been used exclusively
for the purpose for which they were obtained and the same have not been diverted /
siphoned and no misrepresentation has been caused of any kind or accounts
falsified/any fraudulent transaction have been carried out etc.
5. To keep the Bank informed of the happening of any event likely to have a substantial
effect on their income.
6. Not to create any further charge, lien or encumbrance over the assets and properties
of the company to be charged to the bank in favour of any other bank, financial
institution, Company, firm or person.
Page | 130
ANNEXURE B
OTHER GENERAL TERMS & CONDITIONS OF SANCTION
1)
Satisfactory CRs shall be obtained from other Banks from whom the borrower/
associates are enjoying / sanctioned credit facilities and it shall be ensured that
the account is a Standard Asset with them, before release of limit.
2)
An undertaking shall be obtained from the owners of the properties mortgaged to

the Bank that there are no arrears of tax including interest leviable thereon under
various provisions of Income Tax Act, against them.
3)
All statutory and/or Regulatory permissions or guidelines from local or other

competent authorities shall be obtained by the branch/borrower (as applicable).
4)
Advance / Facility sanctioned shall be used for the specific purpose for which it is
sanctioned and not for any other purpose. End use of the funds/facility shall be
ensured by the Branch.
5)
In terms of HO Circular No.HO/R&L/14/2001-02/355 dated 09.02.2002, an

affidavit and undertaking about the names, age and address of legal heirs
of the borrower / obligants / guarantors shall be obtained, which shall be
recorded and updated from time to time.
6)
In terms of HO Circular No.ADV/17/2004-05 dated 29.05.2004 necessary

documents / declaration from the borrower/guarantor pertaining to Credit
Information Bureau of India (CIBIL) shall be obtained.
7)
The credit facilities sanctioned to the borrower should be availed within a period
of six months of the date of sanction failing which the sanction shall lapse.
8)
Bank reserves the right to withdraw the sanction at any time in case any new
facts etc come to light.
9)
It shall be ensured that all the papers obtained from the borrower /( in pre and
post sanction phase) are duly signed by the authorized signatory.
**************
Page | 131
Annexure: 32
BRANCH OFFICE: __________________
DUE DILIGENCE REPORT
S.
No.
1
2
3
4
5
PARTICULARS
REMARKS
Name of the Borrower/Borrowers

Name of the Guarantor/Guarantors
Existing Activity of the borrowers/ Guarantors
Identitiy Proof (i) Passport (ii) PAN card (iii) Voters Identity Card
(iv) Driving licence (v) Identity card (subject to the banks
satisfaction) (vi)
Letter
from
a recognized
public
authority or public servant verifying the identity and residence
of the customer to the satisfaction of bank (vii)Letter issued by
UIDAI containing details of name, address and Aadhaar
number(viii) NREGA job card
Address Proof
(i) Telephone bill (ii) Bank account statement
(iii)Letter from any recognized public authority
(iv)Electricity
bill
(v)
Rationcard
(vi) Letter from employer (subject to satisfaction of the bank)
(vii) Rent agreement indicating the address of the customer duly
registered with State Govt. or similar registration authority.
( any one document which provides customer information to the
satisfaction of the bank will suffice )
Details of Existing Banker(s) and dealing since
Observations on CIBIL/other credit information bureau report, RBI
defaulters list, ECGC-Specific Approval List, Credit Report of
existing banker(s), which is applicable
Borrower(s)
Guarantor(s):
Date of pre sanction visit report (Copy of Pre sanction visit report
as per annexure 2 is to be attached)
Any other information related to the party which may help in

taking credit decisions.
We have undertaken the due diligence on the applicants/borrowers from the sources as
mentioned above and are satisfied about their credentials/credit-worthiness.
LOAN IN-CHARGE
BRANCH INCUMBENT
Page | 132
Annexure 33
(On Banks Letter Head)
Model In-Principle Home Loan Sanction Letter

Date:
(Name & Address
of the Prospective
Home Loan Borrower)
Reg: In-principle sanction letter for prospective Home Loan

Dear Sir/ Madam,
Please refer to your enquiry/request for availing Home Loan from our Bank. We are
thankful to you for selecting our Bank for your Home Loan requirement.
Further, based upon the undernoted records submitted by you we have computed you
eligible Home Loan amount as Rs____ lacs (Rupees____ lacs) as per the prevailing
norms of our Home Loan scheme. Accordingly, the above amount may be treated as inpriciple eligible housing loan amount in your case.
However, it may be noted that the regular sanction shall be subject to submission of
complete loan application alongwith duly authenticated required documents & our
formal sanction. The issuance of this letter may not be treated as binding upon the Bank
rather, the Bank reserves the right to sanction or reject any loan proposal without
assigning any reason whatsoever.
The validity of this letter shall be for Ninety days.
We look forward for your early regular proposal & welcome you for joining the Oriental
Bank Family.
Always ready to extend our Best Services with the Oriental touch..
Branch Manager
Page | 133
Annexure-34
BRANCH..
ANNUAL REVIEW OF HOME LOAN ACCOUNTS
Date of Last Review
Nature of Facility
Sr.
No.
1.
Name of
Date
the
of
Borrower Sanction
2.
3.
Sanction
Limit
4.
Date
Of
Disbursement
5.
Repayment
period
6.
Moratori
um
period
7.
Present
O/s as
On
Amt.
In
Arrears
Inst/
interest
8.
9.
Reason
Remarks
Pending
Formalities
for
Including
Delays
Documentation/
or
Inspection
defaults
Irregularities
occurred
(if any)
10.
11.
12.
Recommendations
Recommending Authority
Page | 134
Home Loan FAQs

Que:
Ans:
Definition of housing Loan under CRE?

A housing loan shall be classified under CRE by number of units held by a
person and not by number of loans.
Que:
Separate Housing Loans considered in favour of Husband Wife (Separate

ownership) will come under the purview of Max delegated discretionary
powers to a borrower or separate loan?
If husband & wife stand as co-borrower in each other loan account, loan
shall be treated as loan given to single borrower within maximum delegated
power.
Ans:
Que:
Ans:
Que:
Ans:
Que:
Ans:
Que:
Ans:
Que:
While taking over housing loans from other banks, whether income of close
relative (viz- Parents, Son, Daughter-In Law) be considered for purpose of
enhancement in loan limit.
Yes, the same is permitted; close-relative will stand as co-borrower in the
account. All other takeover norms have to be complied with.
A housing loan is to be availed by parents on the property standing in the
name of their children, who have no income?
Yes, the same is permitted; but children have to be major.
Whether housing loan be considered in favour of state/central government
or PSU employees who are under contributory pension System
Yes, the same is permitted; however employer must deduct and remit the
PF Contribution. Further, repayment period in such cases be considered
similar to Salaried employees with pension i.e. upto 70 years.
Whether housing loans be considered in favour of private employees who
have been employed on contractual basis.
Yes, the same is permitted; however, Proof of income (Form no. 16, salary
slip) must be verified from salary slip and with the salary account. Further,
proper due-diligence be exercised.
Ans:
Whether separate home furnishing loan be considered for carrying out

kitchen POP work /Wood work/ electric works /Painting/polishing of house
etc. at semi furnished / raw flat to be purchased from builder?
No, there is no requirement of considering separate home furnishing loan
for carrying out such work; besides cost of all the necessary expenses be
included in the overall project cost (as part of cost of construction/purchase)
and accordingly eligible limit be financed.
Que:
What are the guidelines regarding insurance of Immovable property?
Page | 135
Ans:
Insurance cover for property is not linked with loan amount. The cover has
to be taken for full value of flat / house (excluding land). In case of flat,
insurance should be taken as per valuation report on market value and in
case of house, cost of plot may be reduced from total market value and
insurance should be taken for remaining portion.
Que:
Whether MPBF under Home Loan be assessed on the basis of 2 years or 3

years ITR?
In case of Professionals, Self-employed persons and businessmen, two
years average income be considered for arriving MPBF under Home
Loan scheme.
Ans:
In case of salaried, latest income be considered for computation of

MPBF. However, in case of wide fluctuation in the annual salary,
average income of past 2 years shall be taken into consideration.
However, it must be ensured that two IT returns not to be filed together.

Que:
Ans:
Que:
Ans:
Whether Staff can avail housing loan for purchase of 3 rd house under
General Public scheme to be classified as CRE?
Yes, the same is permissible
Applicability of Net Take home Criteria for Staff availing Home Loan under
General Public?
The net take criteria to staff availing housing loan under General Public
Scheme shall be applicable as per prevailing terms for General public.
Page | 136

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DEPARTMENT: RETAIL CREDIT

Circular No. HO:Retail:04:2015-16:31

TO: ALL BRANCHES/ OFFICES

Circular No. and Date

HO:Retail:19:2013-14:540 dt: 04.09.2013

HO:Retail:06:2014-15:18 dt: 09.04.2014

Home Loan Master Circular

Approving Authority: For

Home Loan Master Circular

Except Noida / Greater Noida

Home Loan Master Circular

No Housing / any other Retail

Overall up to 30 years subject

For cases falling RLCC-RH

2. Takeover of home loan

c) Relaxation of a) The conduct of the

Home Loan Master Circular

b) There should not be any

In case the owner of property is

Housing loan account shall

Value to Loan Ratio (VTL) should

HLCCBranch IncumbentHLCCBranch IncumbentRLCC-RH

For Regional Office:

Discretionary powers for home

Home Loan Master Circular

Home Loan Master Circular

Branches can make cashdown payment in case of

Home Loan Master Circular

Commercial Rate In case construction of the

Home Loan Master Circular

Purchase of land and construction of a house thereon.

A) Home Loan for construction of house (other than Rural areas)

by architect confirming compliance of Government rulings. Permission from the village

2) Bank finance extended for purchase of a house by a borrower who proposes to

(Amended vide Circular no. HO: Retail:13:2013-14:203 dated 26.06.2013).

For Salaried (With Pension) & other Individuals - upto 70 years

(Amended vide Circular No. HO:Retail:26:2013-14:647 dated: 11.10.2013)

Purchase price of plot/house.

15:764 dated 19.12.2014)

Premium of Group Secure Scheme (GSS)-Canara-HSBC with OBC life insurance

(Amended vide Circular no. HO: Retail:13:2013-14:203 dated 26.06.2013).

In case the charge on house is proposed to be extended in other loan accounts

MAXIMUM ELIGIBLE LOAN AMOUNT

Home Loan Master Circular

Net Take Home

For salaried persons:

Gross income consists of income as declared in the income tax returns/assessments

For Non salaried (Self-employed/Small Business/Traders) where income tax

Subject to complete satisfaction of the sanctioning authority as regard to the

For Farmers/Rural Artisans:

Income per acre per annum

Computation of MPBF for Agriculturists:

Gross Income: a) +b) +c):- _________________

On account of Crop Loan

Total Deductions: a) +b) +c):- _________________

Home Loan Master Circular

Total Cost of the Flat/House

Home Loan Master Circular

2) Net Take Home Criteria

Collectively- Eligibility= 0 + 14.98 + 47.99 + 37.94 = ` 100.91 Lacs

Gross Annual Income

Home Loan Master Circular

DISBURSEMENTa) Release of instalment in case of purchase of ready built house.