Purpose | a) Providing hassle free housing loans to farmers and other rural dwellers to construct new house including the cost of work shed leading to income generating activities such as dairy shed etc. |
Operational area | All villages excluding agency areas where 1/70 act is in vogue and semi urban areas with population less than 50000 as per 2001 census. Branches located in Municipal limits are excluded. |
Eligibility | All farmers, entrepreneurs, artisans, business people, employees etc (in the age group of 18 to 50 years)., and members of SHGs having standard borrowal accounts. |
Loan amount | a) 5 times the average annual income from agriculture including income from ancillary activity. Maximum loan amount: For construction of new house Rs.3.00 lakhs. |
Disbursements | For completion |
Margins | 10% of the project cost |
ROI | See interest rates on loans and advances |
Processing fee | Nil |
Penal Interest | See service charges |
Repayment | Repayments may be fixed based on the generation of income. The repayment would be fixed not more than 15 years in EMI, quarterly, half yearly and yearly installments including moratorium period of 18 months from the disbursement of first installment or two months after completion of house which ever is earlier |
Security: | Equitable/Registered Mortgage of house or any other tangible security including agricultural land to cover 100% of loan amount. Mortgage may be waived up to Rs.0.50 lakhs by obtaining third party guarantee. |
Papers / Documents required | Prescribed as per Housing loans to public. Memorandum of term loan agreement, Guarantee agreement and arrangement letter. |
Insurance | The building should be insured against all risks |