Indian Bank Loan Against Property

‘Purpose: Indian Bank Loan Against Property’

• For fulfilling the credit need(s) of ‘trade’, ‘commercial activity’, other general ‘business’, ‘Profession’ as also for their bona fide requirement(s). 
• For fulfilling marriage(s) or medical(s) or educational expense(s) of family member(s) including near relatives. 
• To undertake ‘repairs’/renovation’/extension to the residence/’commercial property’. 
• Purchase of consumer durables. 
• To ‘purchase’/’construct house’/’flat’, purchase of plot. 
• To purchase ‘2/4 wheeler vehicles’. 
• For going on ‘pilgramage’/’tours’/’excursions’, etc. 
• Repayment of existing ‘loans‘ from other ‘Banks’/’FIs’.

‘Target customer(s) (Eligibility)’

People who are engaged in ‘trade’, commerce and ‘business’, ‘Professionals’, Self-employed, Prop. Firms, partnership firms, ‘HUFs’ (excluding ‘NBFC, Trade’, partnership firms where ‘HUF’ is a partner), companies, ‘NRIs’, individuals with high net worth, salaried-people, ‘agriculturists’, ‘staff member(s)’.

‘Type of advance’

‘Demand’/’Term Loan’/’Overdraft’ (reducible as per re-payment schedule).
Over-draft facility (not reducible as per re-payment schedule) can also be permitted to eligible customer(s) (other than ‘salaried people’).

Quantum of advance: Indian Bank Loan Against Property

Calculation of quantum of advance

• The ‘sanctioned-limit’ is to be related to the value of security & repayment capacity of borrower, subject to : 
• ‘Salaried employees’ :
• 48 times of monthly net emolument(s) (take ‘home- salary’) OR 4 times of net annual income with other ‘rental-income’ from property etc. based on ‘Income-tax returns’ ( Avg. of Last 2/3 yrs).
• ‘Self-employed’/’professionals’/ ‘individuals’ engaged in trade/ ‘commerce’/ business- 4 times of their net ‘annual-income’ based on ‘income-tax returns’ ( Avg. of Last 2/3 yrs). 
• ‘Proprietorship’/’Partnership Firm’/Company – Four times of Cash-accruals (i.e. ‘PAT’+ ‘Depreciation’) as per their ‘Audited Balance Sheet’/ ‘P & L A/c ‘( Avg. of Last 2/3 yrs). Note: 
• For ‘individuals’ :
• While fixing the ‘limi’t, it is to be ensured that the net take ‘home pay’ (net of ‘EMI ‘[notional ‘EMI ‘in case of ‘non reducible OD’] of proposed advance ) is not less than 30% of’ gross income’ of the applicant. For ‘Prop. Firm’/’Partnership firm’/Company: ‘DSCR’ : ‘Min. 1.5 ‘
• Limit prescribed would be subject to a Max. of 70% in case of ‘salaried employees'(50% in other cases) of ‘value of property’ or ‘eligibility level‘.

Margin

• ‘Salaried Employees’          30% * 
• ‘Others ‘                            50% * 
• *On ‘value of property’ [Lower of ‘Market Value’ /’Distress Sale value’/’Registration Value ‘as on date of valuation] assessed by ‘Bank’s’ approved valuer.

Re-payment

In a/c where ‘regular Overdraft facility’ is not proposed. :-
Within a period of eight yrs by way of ‘EMIs’. The re-payment shall commence from the month subsequent to the month in which ‘final disbursement’ is made or 6 months from the ‘first disbursement’. In case of ‘agriculturists’ : The re-payment will be related to the generation of farm income from ‘crops’ and other ‘subsidiary activities’.

‘Security: Indian Bank Loan Against Property’

‘Equitable’/’Legal Mortgage charge’ over property in the name of applicant or his/her spouse or parents or third party. The person in whose name the property to be ‘mortgaged ‘stands should either be  ‘borrower’/’co-borrower’ or a ‘guarantor’.
Note :

•   The property offered should be a ‘residential’ or ‘commercial building’ or a plot of land (residential/commercial). 
•   The property should be ‘self occupied’ or leased out to ‘acceptable individuals’, ‘govt. agencies’, PSUs, ‘Corporates’, etc. 
•   ‘Agricultural land’ is NOT accepted as security for this facility .

‘Processing Fees: Indian Bank Loan Against Property’

• A/cs re-payable as per Stipulated instalments :-
• One time @ 1% of Loan-amount. Min.Rs.3,000/- and max.     Rs30000/-. 
• Overdraft-Limit ( not reducible as per re-payment schedule ) : 
• 0.25% of the sanctioned-limit, Min. Rs.3,000/- and Max. Rs.10,000/- on annual basis. 
• Documents-charges, advocate fee(s), architect fee etc. on actua l- basis. 
• ‘Loan agreement’ copy charges :  As applicable 
• For ‘Partnership firms’/’Corporates’ –
• ‘Processing charges’ will be double that of applicable to individuals
• For ‘Rural areas’ –’Processing charges’ will be 50% that of applicable to individuals in respect of ‘loans’ availed by borrowers from rural areas from the ‘Rural Branches”.
• Additional charges ‘for deviations from the scheme norms – One time 25% of the applicable processing charges min. Rs.500/- max. Rs.3000/-

‘Equitable Mortgage Fee: Indian Bank Loan Against Property’

‘Charges for deviation from scheme norm(s)’

General :

•   Limit(s) exceeding Rs.25 lacsupto Rs.50 lacs – Rs.6,000/-
•   Limit(s) exceeding Rs.50 lacs–Rs.100 lacs – Rs.15,000/- 

‘SME’ :

•   Limit(s) exceeding Rs.25 lacsupto Rs.50 lacs – Rs.3,500/-
•   Limit(s) exceeding Rs.50 lacs – Rs.100 lacs Rs.7,000/-

For every item of deviation from the ‘scheme norms’ –
One time 25% of the ‘applicable processing charges’ min.Rs.3,000/-; max. Rs.10,000/- per a/c.