Frequently Asked Questions

What are the purposes for which home loan is given?
Home loan is given for purchasing house or flat, purchasing land with house, purchasing land for construction of house, reimbursement of the cost already incurred on purchasing or constructing house, and reimbursement of a home loan taken earlier.  

What is the maximum amount that I can get under home loans?
The maximum amount of home loan can go up to Rs. 3 crores. However, the actual loan amount will depend on borrower’s personal situation, whether he is planning new construction or repairs, the locality of house etc.

What is the eligibility for home loans?
home loans are for all people, whether residents or NRIs, who are in the age group of 18 to 50 years are eligible to apply if they have an independent and regular source of income.

Explain about down payment.
The down payment increases with the number of years that the house or flat is old. The down payment is higher when loan has been taken for repairs and improvements rather than new construction.

Do I need to put securities for home loans?
Borrowers need not put any collateral except the mortgage on house property. If there is a delay in offering security of house then alternate collateral needs to be offered until mortgage is created in Bank's favour.

Is third party guarantee necessary for home loans?
We do not require of borrowers to present third party guarantee except in case of co-obligation of the spouse.

Explain about interest rate.
Borrowers get home loans at floating or adjustable rate of interest. If borrower is taking a loan for up to 10 years, then he can qualify for fixed interest rates.

By what time will home loan be approved and sanctioned?
Most loan applications are approved and sanctioned within 2 days. If the application is beyond the purview of the branch office and needs to be sanctioned by the zonal office then a week’s time will be necessary.

Is the insurance of house or property mandatory?
Yes, it is mandatory for the borrower to insure house or property. The cost of insurance has to be borne by the borrower.