Housing Loan | Jammu and Kashmir J&K Bank, Full Procedure
PURPOSE
Loans under the bank’s housing finance scheme can be granted to individuals/ corporates for:-
- Purchase of plot of land for construction of residential house thereupon, provided a declaration is obtained from the borrower that he/she will start constructing a house on the said plot, with the help of bank finance or otherwise, within a period of 2 years failing which interest rate applicable to Commercial Real Estate shall be charged wef account open date.
- Construction of House/Flat/ Dwelling unit
- Outright Purchase of an existing house/ flat/dwelling unit (fully built/ under construction)
- Supplementary finance for repairs/ renovations/ additions/ alterations/ completion of an existing house/ flat/ dwelling unit, constructed/purchased from own sources or with the help of bank finance, whether liquidated or outstanding.
Note: – For purchase/ addition/ alteration/repair/ renovation/ completion of an existing dwelling unit, it shall be ensured that the residual life of the property, as certified by the approved valuer, is more than the door to door tenor of the loan. - Housing loan can be sanctioned for construction/ purchase of 2nd dwelling unit per family or purchase of land/plot irrespective of whether the 1st dwelling unit has been constructed/ purchased from own sources or bank finance.
Note: If an individual owns two or more housing properties/ dwelling units singly or jointly, then the loans sanctioned for acquiring third and subsequent houses/flats or purchase of land are to be dealt as Exposure to Commercial Real Estate (CRE). Appraisal of such loan requests will be carried out as per housing loan scheme, while as other parameters like sector classification, margin requirement, Interest rate etc will be as per CRE norms. Interest certificates shall not be issued to such borrowers for availing income Tax benefits.
ELIGIBILITY
- Individuals having stable source of income, owning or proposing to own house property singly or jointly, belonging to any of the following categories:
- Permanent Employees of State /UT/ Central Government, Government / Semi-Government Undertakings, Autonomous Bodies and Govt Institutions.
- Employees of Pvt/Public Ltd Companies with a minimum of 3 years of cumulative service and minimum 1 year service with current employer.
- Professionals, Self Employed Individuals / Businessmen with a minimum 2 years standing in the current profession/ Business.
- Persons engaged in agricultural and allied activities.
- Pensioners State /UT/ Central Government, Government / Semi-Government Undertakings, Autonomous Bodies and Govt Institutions
- Contractual employees of State /UT/ Central Government, Government / Semi-Government Undertakings, Autonomous Bodies and Govt Institutions shall also be eligible, subject to below noted conditions:
- The remaining period of contract is equal or more than proposed tenor of loan (not mandatory for contractual employees working with current employer for more than 03 years uninterruptedly).
- Mortgage of underlying property shall be mandatory in case of loans to contractual employees.
- Branch Heads shall have no powers to sanction cases where occupation of one or more borrowers/ co-borrowers is of contractual nature.
- Non-Resident Indians working with reputed companies in countries falling in following risk categories as per classification provided by ECGC shall also be eligible for financing under the scheme.
- Insignificant Risk.
- Low Risk.
- Moderately Low Risk
Recommending/ sanctioning authorities to satisfy themselves about the income earned by the Non-Resident and take necessary safeguards for extending finance and regular repayment of such loans (For further details, refer annexure (2) to this document)
- Banks own staff shall also be eligible under public category, provided NOC for same is obtained from HR.
- Corporate Entities shall also be eligible(For further details, refer annexure 3 to this document)
Note:
- Where ever the property owner(in case of pre-owned or ancestral properties) is/are not having independent source of income, the income earning near relative (s)/ legal heir(s) like son(s)/ daughter(s)/ spouse/siblings living with the property owner(s) may join as Joint-Borrowers/ Co-Borrower(s) for the loan and his/her/their income can be considered for arriving at loan eligibility. In such cases, the age of property owner(s) shall not be considered for deriving loan eligibility or fixing tenor of loan.
The housing loan borrowers shall be eligible for Top Up Loans as well.
AGE
Minimum age at the time of loan application: 18 years
