Central Bank of India Loan Against Property

1

Purpose: Central Bank Of India Loan Against Property

To meet any Personal or Business needs, but not for any speculative purpose / real estate activity / capital market activity.

2

Eligibility: Central Bank Of India Loan Against Property

Loan against mortgage of immovable property located in Metro / Urban / Semi Urban/Rural Centres.

3

Target Group

Individuals including staff, singly or jointly, Traders, Businessmen, Professionals or self employed persons, proprietary firms, partnership firms (excluding Traders or partnership firms where HUF is a partner), companies (excluding NBFCs) and NRIs (with co-borrower locally i.e. with Resident Indian who is blood relative of the NRI borrower as co-borrower), having known and regular source of minimum monthly income of Rs.10,000/- or more and not engaged in real estate/speculative activity /capital market activity.

4

Nature of Facility

§      Term Loan and Overdraft

§      The Overdraft facility will be for one year and to be reviewed annually.

5

Loan Amount: Central Bank Of India Loan Against Property

§  Minimum: Rs.1 lakh

§ Maximum: Rs.50.00 lakh for property located in rural area and Rs.500.00 lakh for property located in other areas.

§ EMI inclusive of other borrowings should not exceed 50 % of Gross Monthly Income.

6

Security: Central Bank Of India Loan Against Property

EM of non-encumbered residential house /flat, commercial or industrial property situated in metro/urban/ semi-urban/rural centers only in the name and possession of the borrower either self-occupied or vacant or partially rented out/leased out. The value of property should be equal to 150- 200% of the loan amount.

7

Insurance

The property will be insured against fire, riots wherever required and also against other appropriate hazards, such as earthquake, flood, lightning etc with bank’s clause for full value of the property.

8

Guarantee

Personal guarantee of the joint /co-owner of the property (if any).

In case of mortgage loan to firm/company, personal guarantee of partners/ directors to be taken.

9

Prepayment Charges: Central Bank Of India Loan Against Property

§ Nil, in case prepaid from borrower’s own sources.

§ If the loan a/c is taken over by other Bank/FI, prepayment charges to be levied @ 1% of loan outstanding as on the date of such take over.

10

Repayment

§ Loan is to be repaid in Maximum 120 equated monthly installments (EMIs), commencing from next month of disbursement.

§ Repayment of EMIs through ECS mandate/ Post dated cheques.