House building Loan facility for employees is a Scheme approved by the Board of Directors of all banks. House Building Investment/Loan shall be provided to the employees of the bank up to the limit fixed for each grade and subject to fulfillment of other criteria to buy plot (40% of the ceiling for land & rest amount for construction), built in house, construction of building, renovation of existing building and to buy Flat/Apartment (mainly Investment.
House Building Loan facility eligibility and main features to avail the Employees House Building Investment/Loan are as follows:
a) The facility under the scheme will be admissible to the employees from the level of Principal Officer and above.
b) Fresh entrants will be eligible for the facility after completion of 7 years of continuous and satisfactory services in Bank.
c) In case of lateral entry (from bank or other organization) up to the rank of EVP total length of service of the employees must be at least 7 years including 3 years continuous and satisfactory service with Bank, for SEVP & above who are in regular service having minimum 2 year’s service ahead will be entitled for the investment under the scheme.
d) The outstanding liability of the employee in other bank/organization shall be taken-up within the ceiling as and when one joins in Bank.
e) Employees up to EVP having 5 years service ahead will be entitled to enjoy the facility. The Executive Committee of the Board of Directors may, however, relax the aforesaid condition on case to case basis.
f) Employees on contract basis may get the facility as a special case approved by the Executive Committee of the Board of Directors.
Different Types of Credit Facilities Provided By Banks
g) Employees will be eligible for availing the Employee’s House Building Investment facility under new/revised ceiling for extension of construction work of existing house/building up to his/her new/revised ceiling justifying proper requirement and uses along with estimated cost. In this respect further charge/additional charge to be obtained for the additional amount, if the employee had created RM with RIPA earlier on the respective schedule of the property. In case of apartment/flat, an employee may avail the investment for purchasing new house/apartment after adjustment of previous outstanding in full from his/her own source or from enhanced investment against mortgage of new property.
h) The ownership of the Land/House/Flat/Apartment shall be in the name of the employee/or his/her spouse and shall be within the Municipality area.
i) Land/House/Flat/Apartment to be purchased/constructed shall be as per plan approved by the appropriate authority Municipality/Local Authority).
j) If both husband & wife are employees of the Bank, only one of them shall be entitled to avail the facility.
k)Investment shall be repaid within a maximum period of 18 years from the date of disbursement/fresh disbursement.
l) Investment shall remain secured by Registered Mortgage of land & building purchased/to be purchased.
m) An employee, who has availed partial Investment earlier, may avail investment under new/revised ceiling after adjustment of existing outstanding provided the value of the property covers the exposure. But who has availed sanctioned investment in full earlier he/she will not be eligible for availing further investment under the new/revised ceiling without adjustment of existing outstanding and purchasing new house/flat.
n) Employees availing House Building Investment under new/revised EHBI scheme may get additional Investment in subsequent occasion on upgrading for renovation & interior decoration up to a reasonable amount within his/her ceiling.
o) The service track record of the applicant must be satisfactory and if the disbursing authority finds the applicant is not suitable from the point of view of discipline, sincerity and devotion, the discharging authority may not allow the facility under the scheme.
House Building Loan facility Special conditions:
a) Usual charge documents along with written undertaking regarding refund of facility with rent as and when the management calls back the facility.
b) Lien of provident fund, gratuity, bonus, Super Annuation fund, etc must be created.
c) The deduction of availed facilities from the Bank including EIS facility must not exceed 50% of gross salary.
d) The service record of the applicant should be obtained from HRD for newly posted officers in the branch.
e) The investment amount to be disbursed to the account of the employees for ultimate payment to the seller, money receipt to this effect should be submitted within 30 days invariably.
f) All other existing terms and conditions of the scheme shall remain unchanged.
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