CO/ADV/106/2024-25 Date: 11.11.
2024
Circular No : 3122 R. No: 106/2024-25
File No. : 30
To
All Branches/CPHs/CPCs/RDMs
“I”
Modification of Key features in the existing Housing loan and LAP
Products
Branches are aware that features of Housing Loan and Loan against property
(LAP) products were modified and circulated to branches vide our Circular no:
3087 dated: 03.02.2024.
To have more focus on the retail loan segment, we have once again revised
the features of Housing loan and LAP by adding up new products. Detailed
circular on the revised product schemes shall be circulated to branches once
the products are developed in the NEWGEN application.
To address the immediate requirements, we have revised some of the key
features of our Housing loan and LAP scheme which is annexed along with
this circular.
Branches /CPHs/CPCs and RDMs are advised to take note of the revisions and
suitably recommend the proposals.
S RAJAM
GENERAL MANAGER
ADVANCES
HOUSING LOAN
Key features Existing Revised
Minimum Type of Center/ Minimum loan
Permissible Property location amount
Loan amount
Metro Rs.25.00 lakh
Urban Rs.20.00 lakh Rs.10 lakh
Semi Urban Rs.15.00 lakh
Rural Rs.10.00 lakh
Assessment Fixed Obligations to Income ratio For Salaried class:
(FOIR) eligible – 60%
Applicants Monthly income - Average of
the last 3 months’ salary credit in the
bank statement should be considered
For all segments:
Rental income- Only existing rental
income credited in bank is to be
considered. Future rentals from the
property to be purchased will not be
considered.
Other income – only 50% to be
considered.
Beyond 50% up to 75% - permitted at
AGM level.
Beyond 75% up to 100% - permitted at
DGM level.
Speculative income is not to be
considered for eligibility.
Normal FOIR allowed is 60%
Authority for allowing higher FOIR (above
60%):
AGM DGM
Self employed Up to Up to
70% 80%
Salaried (for Up to Up to
beyond Rs.50000 65% 75%
salary)
Salaried (for 75% 75%
beyond Rs.75000
salary)
LOAN AGAINST PROPERTY
Key features Existing Revised
Minimum -- Rs.10 lakh
Permissible Loan
amount
Assessment Current FOIR is – 55% For Salaried class:
Applicants’ Monthly income - Average of the last
3 months’ salary credit in the bank statement
should be considered
For all segments:
Rental income- Only existing rental income
credited in bank is to be considered. Future
rentals from the property to be purchased will
not be considered.
Other income – only 50% to be considered.
Beyond 50% up to 75% - permitted at AGM
level.
Beyond 75% up to 100% - permitted at DGM
level.
Speculative income is not to be considered for
eligibility.
Normal FOIR allowed is 55%
Authority for allowing higher FOIR only for self-
employed
Up to 65% - AGM
Up to 80% - DGM
For salaried profile, FOIR above 55% need to be
approved at GM & above.
Repayment Period 84 – 120 months (If Residential / Commercial property as
repayment exceeds 84 collateral – up to 180 months
months, it has to be Industrial property - 84 – 120 months (If
approved by GM & above repayment exceeds 84 months, it has to be
cadre). approved by GM & above cadre).
