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Mortgage Loan - New property purchase Loan

Are you planning to buy a commercial space? Realize your wish list with our loan for new property purchase.

Purpose :
  • Acquisition of commercial premises / space such as shop / office / godown, etc.
Eligibility :
  • Salaried employees
  • Businessmen
  • Self-employed
  • Professionals having regular source of income
  • Firm (proprietary / partnership)
  • Private / public limited company
  • Additional eligibility :
    • Clients having investible surplus and needing finance support to complete the transaction. There may or may not be immediate plan for starting any business activity at the place or proposed activity may be for his close family member / kith & kin / housewives.
    • Where income generating asset is created from the proposed loan, The average D.S.C.R Calculated on the basis of projected income, taking into consideration total loan repayment obligations, including that of proposed property loan, should be minimum 1.5
Source of
Eligibility :

While determining the quantum of advance- eligible amount would be restricted as under :

  • In case of salaried individuals :
    • Total deductions, including present obligation and installment of proposed property loan, should not exceed 65% of gross income of the Borrower
  • In case of others :
    • Average 3 years Gross income to be considered for calculation of loan eligibility.
    • Total deduction including present and proposed loan obligation should not exceed 65% of average gross income of the Borrower. Projections not required where existing income is sufficient to cover EMI.
    • If income is in decreasing trend, last year’s income to be considered.
Quantum :
  • Minimum : ₹ 5 lakhs
  • Maximum : ₹ 35 lakhs (may be extended up to ₹ 100 lakhs)
Tenure :
  • Term Loan : Maximum period up to 10 years including moratorium of maximum up to 24 months (Repayable in EMI commencing from 1 month after first disbursement or after moratorium period depending upon Cash Flow generation, whichever is earlier)
Documentation :
  • In case of new customer, applicant & guarantors need to open savings / current account
  • Duly filled & signed loan application form
  • Duly signed loan agreement
  • KYC documentation as per RBI guidelines, including proof of identity & address proof of applicant & guarantors with 3 passport sized photographs
  • Copy of updated passbook / bank statement for last one year
  • Details of existing on-going loan availed from banks / financial institution
  • Copy of Bank deposits / Life Insurance Policies / Other Investments (if any)
  • For Salaried individuals :
    • Last 3 months’ – salary slips
    • Form 16 or Income Tax Return
  • If an applicant Is a self-employed individual :
    • Income tax returns of last 3 years, 26 AS from traces
    • Financial statements including balance sheet, profit & loss account and computation of income for last 3 years
    • Licenses / permissions from competent authorities
Additional Documents :
  • Documents for the property to be purchased :
    • Registered agreement for sale.
    • Registration receipt and index II
    • 7/12 extract, mutation entry record (Pherfar)
    • Copy of development agreement, power of attorney executed in favour of the builder / developer by the land owner
    • Permission for construction from the competent authority (KDMC / TMC / BMC etc.) with approved plan
    • N.A. Order wherever applicable. Completion certificate issued by the competent authority. If it is not yet received, a copy of the application for C.C. (Completion Certificate) with annexure-J submitted to the authority
  • Documents to be obtained from the builder :
    • Architect’s certificate about stage of construction (percentage of total work completed to be mentioned)
    • Booking / advance payments receipts for payment to builder.
    • NOC for creation of mortgage in bank’s favour (to be issued as per bank’s format on the letterhead of the builder)
  • Documents to be submitted in case of purchase of re-sale property :
    • Chain of all previous title documents (agreements of sale and registration receipts)
    • Share certificate in case of Co-op. Hsg. Society and registration certificate of the co-op. Hsg. Society
    • Latest receipt for maintenance charges and property tax payment
    • NOC and no dues certificate from co-op. Hsg. Society
    • NOC for creation of mortgage in bank’s favour from the Co-op. Hsg. Society / builder if housing society has not been formed (as per bank’s format)
    • Apartment deed / NOC from owners’ assoc. In case of purchase of flat in apartment
ROI :
  • Please click here to know about latest ROI & Service Charges.
Important Terms :
  • Applicant has to be a regular shareholder of the bank. The guarantors have to be either a regular member (shareholder) or a nominal member (in case of loan amount up to ₹ one lakh) of bank.
  • Standing Instruction (SI) Request / ECS or NACH instructions / Post Dated Cheques (PDC) to be submitted to the bank as per requirement.
  • Search report and title clearance report for the property to be obtained from bank’s panel advocate. Professional fees / charges for the same to be borne by the applicant, even if the loan proposal is not sanctioned by the bank.
  • Valuation of the property is to be carried out by bank’s panel valuer. Professional fees / charges for the same to be borne by the applicant even if the loan proposal is not sanctioned by the bank.
  • Insurance premium for mortgaged property for the full tenure of the loan to be borne by the applicant.
  • All conditions stipulated in the advocate’s title clearance report are to be fulfilled before consideration of the loan proposal.
  • Inspection of the property / site will be carried out by bank officials. Applicant has to make necessary arrangements for this.
  • Formalities regarding recording bank’s charge on the property by the builder / co-operative housing society and transfer of share certificate in the name of the applicant / borrower by the co-operative housing society, are to be completed as early as possible. The applicant / borrower has to ensure and take active responsibilities for this.
  • Before disbursement, applicant has to provide margin money and necessary amount to meet all the expenses (as mentioned above & as per service charges). Adequate amount for the purpose is to be deposited in the bank account in advance.