HOME IMPROVEMENT LOAN-618

NF- 546 Specimen Card

NF- 964 Loan Application

NF-990 Rating Sheet for Retail Lending Scheme

NF-967 Certificate of compliance of term and conditions

NF-482 Certificate of Loan Papers obtained

NF-803 Letter Evidence Execution of Documents.

Cibil

Interest Variation

Sanction Memorandum

Purpose:

“Home Improvement Loan Scheme” provides a packaged financial assistance to individuals for
furnishing their houses / flats at incredibly low rates of interest."
For purchase of household furniture items, refrigerator, fans, air conditioner/s, to put up wardrobes
or any other household item/s.

Eligibility:

• Owners of House / flat who are salaried individuals / individuals engaged in business /
professionals / self-employed. NRIs are also eligible.

• Salaried individuals should have a minimum monthly net take home salary of 25% of their
gross salary or Rs. 2000/- after meeting the loan instalments for the proposed loan.

• Professionals and other non-salaried persons should have a minimum annual income of Rs.
50000/- to be evidenced by Income Tax assessment order / return.

Sanctioning Authority(cir 66/2020): The Home Improvement Loans can be sanctioned to Existing
Housing Loan Borrowers upto 20% of the total Housing Loan sanctioned amount by taking
mortgage of House property subject to:
1. In Case of Branches not attached to RAHs:
i. Upto Rs.5.00 lakhs or One Year Annual Income whichever is less by the Branch-in-
Charge.
ii. Above Rs.5.00 lakhs upto Rs.15.00 lakhs. OR One Year Annual Income whichever is less
by RO-Head-CAC on case to case basis.
2. In case of branches attached to RAH:
i. Upto Rs. 10.00 lakhs or One year annual income whichever is less by the RAH in Charge,
for their linked branches
ii. Above Rs.10.00 lakhs upto Rs.15.00 lakhs. OR One Year Annual Income whichever is
less by RO-Head-CAC on case to case basis.
 3. Above Rs.15.00 lakhs upto 25.00 lakhs by Circle Head CAC on case to case basis.
4. Above Rs.25.00 lakhs by CGM/GM-HO-CAC on case to case basis.

Loan Quantum and Margin:

• When availed along with Housing Loan from our Bank, amount upto one year's gross
salary / income over and above the normal eligible amount for housing finance.
• In other cases, one year's gross income / salary will be reckoned to determine the loan
quantum under this Scheme.
• Subject to above, normally, the maximum loan quantum shall be Rs.2 lacs. Higher
quantum considered selectively.
• If availed as a part of the housing finance from our Bank, then, the margin stipulated is same
as margin stipulated for Housing Loan. In other cases, the margin is 20%.
• These Home Improvement loans can be sanctioned to New Customers also by taking House
property as mortgage as below.
• a. Up to ₹ 5.00 lakhs or One year income whichever is less by the Branch/RAH in charge.

• b. Above ₹ 5.00 lakhs to 10.00 Lakhs or One year Income whichever is less by Circle Head
CAC.
• c. Above ₹ 10.00 lakhs by CGM/ GM-HO CAC.
Security:

• Hypothecation of assets created out of this loan.

• Mortgage of house / flat
• Suitable co-obligation / personal guarantee. Waiver considered selectively.
• Home improvement loan shall not be sanctioned without mortgage of House/ Flat.
Repayment(cir 66/2020): The maximum permissible tenor of the loan will be the residual tenure of
underlying Home Loan or 7 years, whichever is lower, subject to liquidation of the loan before the
borrower attains the age of 70 years. However, the borrowers can also opt for a lower tenor.

Rate of Interest: (cir 501/2019)

CS1 RLLR + 2.50
CS2 RLLR + 2.55
CS3 RLLR + 3.05
CS4 RLLR +4.55

Disbursment:

• Amount will be normally disbursed only after acquiring ready built house / flat or
completion of construction of house / flat or completion of repairs / renovations, etc., where
the loan is availed along with housing finance.

• In case this loan is sanctioned independent of a housing loan then, the loan can also be
disbursed against proforma invoice, etc.
Processing Charges:

The processing charges payable is 0.5% of the loan amount subject to a minimum of Rs. 1500/- and
maximum of Rs. 10000/- (subject to change from time to time).

Documents Required:

• Stipulated Loan application with 2 passport size photographs

• Latest Salary Certificate and Form No.16
• ITAO / IT Returns (for professionals and non-salaried persons)
• Proforma Invoices, cost estimates

Prepared BY
SANTOSH(109350)