This loan is provided to purchase residential plot .The plot should be freehold and within municipal limits or in case of direct allotment by the concerned development authority, outside municipal limits. approved by municipal authorities or goverment authorities .
Tenure - 1 to 15 years
Interest rate - As applicable. Interest rate keeps on changing.
Max funding - 60% to 80% (depends on bank to bank) of market value . Market value is assess by bank .
Age limit - for salaried 65 years or retirement age whichever is earlier and 70 years for self employed.
Loan foreclosure penalty - Means paying off the complete loan at one go. Most bank charges 2 to 3% of principal outstanding .
part payment - means paying some part of loan. No penalty is charged by most banks, but there are certain banks which charges.
Income tax benefit - No tax benefit .
3 documents are required for a loan to get disburse
- Sanction letter: - Loan sanctioning is based on the financial documents,personal documents and past credit history of the borrower. Based on the information provided banks calculates the eligibility and decides on the loan amount.
Documents required for loan sanctionning are :-
Documents in case of salaried
Documents in case of sole proprietor (proprietorship)
Documents in case of partner (partnership)
Documents in case of director (private limited company)
- Legal report: - In this complete chain of documents , starting from allotment of the property till the last transaction , are required . Based on the documents provided , legal report is made.
- Technical report: - In this approved map by municipal authority is required and based on it physical verification of the property happens. Certain things are checked like area of property , usage of property(Residential or commercial) and based on it report is made .
If all the 3 documents are approved by the bank, than disbursement documents are signed and cheaque is made in name of seller .
This complete process takes 15 to 18 days , subject to complete documents are provided by borrower .