Circular No.: 25/2022 | Date: 17.09.

2022
Issued by: Dakshin Bihar Gramin Bank, Credit Department

✅ SCHEME VARIANTS

1. DBGB Home Loan – Public

2. GEN-NEXT Home Loan – Public
3. Overdraft/Term Loan to Home Loan Borrowers (Personal Needs)
4. Composite Loan (Plot + Construction)
5. Financing Solar Systems under Home Loan

👥 ELIGIBILITY

 Individuals or co-borrowers with regular income

o Salaried, self-employed, pensioners, professionals, farmers, etc.
 Staff eligible under public scheme

🎯 PURPOSE

 Purchase or construction of house/flat

 Additions, repairs, renovations, furnishing
 Plot/land purchase for house building
 Composite loan (plot + construction)
 Solar power systems

💵 LOAN AMOUNT (Indicative)

 Land purchase: ₹50 lakh (up to ₹5 crore in special cases)

 Repairs/Renovations: Max ₹50 lakh
 Furnishing: Max 15% of loan or ₹50 lakh (lower of two)
 Based on project cost & repayment capacity

🧮 REPAYMENT & MORATORIUM

 Max tenure:
o 30 years (construction/purchase)
 o 15 years (repairs)
 Moratorium:
o 18 months (construction)
o 6 months (repairs)
o 48 months or possession (under-construction flats)

📈 RATE OF INTEREST (ROI)

 Floating & Fixed options available

 ROI based on LTV ratio & CIC score
 DBGB Pride Scheme: Concession for govt. employees/pensioners
 Additional 0.50% interest on CRE (Commercial Real Estate)

💼 MARGIN & LTV

 Margin: 15–25% depending on loan type and CIC score

 Max LTV:
o 85% (≤₹30 lakh)
o 80% (>₹30 lakh–₹75 lakh)
o 75% (>₹75 lakh)

🧾 SECURITY

 Equitable or registered mortgage of financed property

 Tripartite agreement if mortgage not immediately possible
 Alternate collateral allowed in special cases

🛠️DISBURSEMENT

 In stages for under-construction projects

 Linked to construction progress
 Reimbursement possible within 3 months of purchase (approval required)

🧾 DOCUMENTATION
  Income proof, KYC, property documents
 Appendix III in circular lists all required documents

📬 OTHER PROVISIONS

 No Prepayment Charges for floating rate loans

 2% Prepayment Fee for fixed rate loans (in specific cases)
 Penal Interest: 2% on default or non-construction within 3 years (land loans)
 Annual issue of Interest Certificate & Statement of Account
 Scheme code: TLPHL for system entry

🚫 NOT ELIGIBLE

 HUFs (Hindu Undivided Families)

🏠 1. DBGB Home Loan – Public

🔹 Purpose

To provide home loans for:

 Construction of a house/flat
 Purchase of built/under-construction house/flat
 Additions/repairs/renovation/furnishing
 Purchase of land for house construction
 Cost escalation in under-construction projects
 Composite loans (land + construction)

🔹 Eligibility

 Individuals or co-borrowers with regular income:

o Salaried employees
o Pensioners
o Professionals
o Self-employed individuals
o Farmers/business owners
 DBGB staff members are also eligible

🔹 Loan Amount
  Construction/Purchase: Need-based, as per project cost and repayment capacity
 Land Only: Up to ₹50 lakh (can go up to ₹5 crore with higher approvals)
 Repairs/Renovations: Up to ₹50 lakh
 Furnishing: Up to 15% of loan amount or ₹50 lakh (lower of two)

🔹 Margin Requirements

 15–25% depending on loan slab and CIC score

 Land-only purchase: 25% margin

🔹 LTV (Loan to Value) Ratio

 Up to ₹30 lakh: 85%

 ₹30–75 lakh: 80%
 Above ₹75 lakh: 75% (can be 80% for CIC 680+)

🔹 Rate of Interest (Floating)

 Based on CIC score and LTV

 Lower interest under DBGB Pride for Govt. employees/pensioners
 Additional 0.50% interest for Commercial Real Estate loans

🔹 Repayment Terms

 Up to 30 years including moratorium

 Moratorium up to 18 months (construction), or 48 months (under-construction flats)
 Repairs/Renovation: Max 15 years

🔹 Security

 Equitable or registered mortgage of the financed property

 Tripartite Agreement or alternative security in case mortgage can't be created
immediately

🔹 Disbursement

 In stages, based on construction progress

 Lump-sum for outright purchase
 No disbursement without recovery of service charges

🏡 2. GEN-NEXT Home Loan – Public

This is a modernized variant of the home loan designed for younger borrowers or those early
in their career with future income potential.
🔸 Special Features

 Loan eligibility and repayment structured on future income growth

 Designed to match competition with other banks/HFCs
 Useful for younger salaried borrowers with lower present income but high future
potential

🔸 Eligibility

 Salaried class (especially younger professionals)

 Income trends and job stability are taken into account
 Co-borrower income (parents/spouse) can be clubbed

🔸 Repayment

 Longer tenure possible (up to 30 years)

 Graduated EMIs based on expected future income increase
 Moratorium options similar to public scheme

🔸 Security, Margin, LTV, and Interest Rate

 Same rules apply as in DBGB Home Loan – Public

 Rates may be customized depending on applicant profile and risk grading

📋 Common Guidelines for Both Schemes

 Tripartite Agreements if mortgage can't be created immediately

 Prepayment: No charges for floating rate loans
 Penal Interest: 2% in case of defaults or construction delay beyond 3 years (land)
 Top-up, takeover, and reimbursement allowed with conditions
 Interest Certificates and Account Statements sent annually without request

🏡 DBGB Home Loan – Public vs. GEN-NEXT Home Loan – Public

Feature DBGB Home Loan – Public GEN-NEXT Home Loan – Public

Purpose Construction, purchase, repairs, land, Same as public scheme

 Feature DBGB Home Loan – Public GEN-NEXT Home Loan – Public

furnishing, composite

Younger salaried individuals with

Target Borrowers General public (all eligible income groups)
future income growth

Salaried, pensioners, self-employed, farmers, Mostly salaried youth and

Eligibility
staff professionals

Need-based, up to ₹5 crore (land purchase in

Loan Amount Same limits as public scheme
special cases)

Up to 30 years with graduated

Repayment Tenure Up to 30 years (15 years for repairs)
EMIs

18 months (construction), 6 months (repairs),

Moratorium Period Similar; flexibility allowed
up to 48 months for under-construction flats

- Up to ₹30 lakh: 85%

LTV Ratio - ₹30–75 lakh: 80% Same LTV guidelines apply
- >₹75 lakh: 75% (80% if CIC ≥ 680)

Based on CIC score & LTV; concessions under Similar; may vary based on career
Interest Rate
DBGB Pride profile and potential

Rate Type Floating / Fixed (Fixed +0.50% over floating) Same

Mortgage of financed property; Tripartite

Security Same
Agreement if needed

In stages as per construction; reimbursement

Disbursement Same
within 3 months

Important feature; allows higher

Income Clubbing Allowed (spouse, children, parents, co-owners)
eligibility for young borrowers

Designed for early-career

Special Feature General scheme for all customers
borrowers with increasing income

Graduated EMIs (starting low,

EMI Structure Standard or customer-selected
increasing over time)

Prepayment Nil for floating rate; 2% for fixed rate (in case of
Same
Charges takeover)

Top-Up/Takeover
Available with conditions Available
Facility
 Feature DBGB Home Loan – Public GEN-NEXT Home Loan – Public

GEN-NEXT specific (mapped under

Loan Code (CBS) TLPHL
same home loan structure)

Graduated EMIs Explained with Example

Graduated EMI is a special repayment plan where the EMI starts low in the initial years and
increases gradually over time, aligned with the borrower’s expected income growth.

🧠 Why Use Graduated EMI?

This is especially useful for:

 Young salaried professionals

 Fresh government recruits
 Borrowers expecting regular salary increments

It allows them to:

 Afford a higher loan amount now

 Manage repayments easily in the early years
 Match EMI with salary growth over time

📌 How It Works

Let's assume:

 Loan Amount: ₹30,00,000

 Tenure: 20 years
 Initial EMI (Years 1–5): ₹20,000
 Next EMI Slab (Years 6–10): ₹25,000
 Final EMI Slab (Years 11–20): ₹30,000

Instead of a flat EMI of ~₹26,000 for 20 years, the schedule may look like:
Years EMI Amount EMI Nature

1–5 ₹20,000 Lower EMI (early years)

 Years EMI Amount EMI Nature

6 – 10 ₹25,000 Medium EMI (growing income)

11 – 20 ₹30,000 Higher EMI (peak income years)

The bank may calculate an internal blended interest rate and amortize the total amount such
that it is fully paid off by the end of 20 years.

🎯 Benefits

✅ Pros ❌ Considerations

Enables early loan eligibility Higher total interest outgo over tenure

Matches borrower’s income growth Requires confidence in future income increase

Reduces EMI burden during career start May strain future finances if income doesn't rise as expected

📚 Example Scenario

 Borrower: 25-year-old software engineer

 Current income: ₹40,000/month
 Expected salary growth: 10% per year

🔹 Under regular EMI, loan eligibility might restrict to ₹20–22 lakh.

🔹 Under Graduated EMI, he may be eligible for ₹30 lakh, as future EMI capacity is
considered.

1. Standard EMI Calculator

Description:

 The Equated Monthly Installment (EMI) remains the same throughout the loan tenure.
 The borrower pays equal installments every month, covering both principal and interest.

Formula:

EMI=P×r(1+r)n(1+r)n−1EMI = P \times \frac{r(1+r)^n}{(1+r)^n - 1}EMI=P×(1+r)n−1r(1+r)n

where:

 PPP = principal loan amount

 rrr = monthly interest rate (annual rate / 12)
 nnn = total number of monthly installments

Characteristics:

 Fixed EMI throughout the loan term.

 Easy to budget for monthly payments.
 Interest portion is higher initially and reduces over time; principal portion increases over
time.

2. Graduated EMI Calculator

Description:

 The EMI starts lower and increases periodically (usually annually) by a fixed growth rate.
 Useful for borrowers expecting their income to grow over time.
 Initial EMIs are lower, and they increase over the loan tenure at a predetermined rate.

Key Parameters:

 Initial EMI (EMI0EMI_0EMI0)

 Growth rate of EMI per year (ggg)
 Loan tenure in years (TTT) or months (nnn)
 Principal (PPP)
 Interest rate (rrr)

How it works:

 EMI in year kkk = EMI0×(1+g)k−1EMI_0 \times (1+g)^{k-1}EMI0×(1+g)k−1

 The loan amortization considers increasing EMI payments.

Approximate Calculation:
Graduated EMI is complex because the increasing EMI payments mean the amortization
schedule changes. Typically, financial software or amortization tables handle this precisely.

Example Comparison
 Parameter Value

Principal (P) ₹10,00,000

Annual Interest Rate 10%

Loan Tenure 5 years (60 months)

EMI Growth Rate (g) 10% per year

Standard EMI Calculation

 Monthly interest rate = 10% / 12 = 0.008333

 Number of months = 60

EMI=10,00,000×0.008333(1+0.008333)60(1+0.008333)60−1≈₹21,247EMI = 10,00,000 \times \

frac{0.008333(1+0.008333)^{60}}{(1+0.008333)^{60} - 1} \approx
₹21,247EMI=10,00,000×(1+0.008333)60−10.008333(1+0.008333)60≈₹21,247

So, a fixed EMI of ₹21,247 every month for 60 months.

Graduated EMI Calculation (Approximate)

 Initial EMI (EMI0EMI_0EMI0) is typically lower than standard EMI to accommodate

growth, say ₹15,000.
 EMI increases 10% every year:
o Year 1: ₹15,000/month
o Year 2: ₹16,500/month
o Year 3: ₹18,150/month
o Year 4: ₹19,965/month
o Year 5: ₹21,962/month

Because of increasing payments, total interest paid and principal amortization varies, but the
borrower pays less initially.

Summary Table

Feature Standard EMI Graduated EMI

EMI Amount Fixed throughout tenure Starts low, increases periodically

Monthly Budgeting Easy and predictable Becomes higher over time

 Feature Standard EMI Graduated EMI

Initial EMI Higher Lower

Payment Increase None Fixed percentage increase yearly

Suited For Stable income borrowers Borrowers expecting income growth

MCQs 1–10

1. Which category of borrowers is eligible for DBGB Home Loan?

A. Only salaried individuals
B. Only farmers
C. Individuals with regular income including salaried, professionals, farmers, etc.
D. Only government employees
Answer: C
2. What is the maximum tenure allowed for a home loan used for construction or
purchase of a house/flat?
A. 15 years
B. 20 years
C. 25 years
D. 30 years
Answer: D
3. What is the Loan-to-Value (LTV) ratio permitted for home loans up to ₹30 lakh?
A. 90%
B. 85%
C. 80%
D. 75%
Answer: B
4. Under DBGB Home Loan guidelines, which of the following is considered part of
the project cost?
A. Stamp duty
B. Registration charges
C. Car parking (defined as garage)
D. Cost of living expenses
Answer: C
5. What is the maximum home loan that can be sanctioned for standalone purchase of
land/plot in state capitals or metro cities (by ROCAC-II)?
A. ₹50 lakh
B. ₹100 lakh
C. ₹300 lakh
D. ₹500 lakh
Answer: B
6. Which of the following is NOT a valid purpose under DBGB Home Loan?
A. Purchase of car
 B. Purchase of built house
C. Repairs/renovation of house
D. Additions to existing house
Answer: A
7. Which authority can waive security/third-party guarantee requirement in some
cases?
A. Branch Manager
B. ROCAC-II and above
C. Builder
D. Legal Advisor
Answer: B
8. What is the penal interest rate charged in case of default?
A. 1% over applicable rate
B. 3% over applicable rate
C. 2% over applicable rate
D. 5% over applicable rate
Answer: C
9. Who are eligible for DBGB Pride concession?
A. Private sector employees
B. Real estate developers
C. Central/State govt. employees and pensioners
D. Bank defaulters
Answer: C
10. What is the moratorium period for construction of house under the scheme?
A. 6 months
B. Till construction is completed or 18 months, whichever is earlier
C. 24 months
D. 12 months
Answer: B
11. Which document is not mandatory for salaried individuals drawing below-taxable
income with DBGB salary accounts for the past 2 years?
A. ITR
B. Latest salary slip
C. Statement of account
D. Employment verification
Answer: A
12. What is the maximum permissible deduction from Gross Annual Salary/Income
(GAS/I) for loans above ₹10 lakh?
A. 50%
B. 60%
C. 70%
D. 80%
Answer: C
13. For loan above ₹75 lakh, with CIC score 680 and above, the maximum LTV
allowed is:
A. 75%
 B. 80%
C. 70%
D. 60%
Answer: B
14. Cost of furnishing included in project cost can be up to:
A. 10% of loan or ₹30 lakh
B. 15% of loan or ₹50 lakh
C. 20% of loan or ₹20 lakh
D. Not permitted
Answer: B
15. In case of sudden spurt in income in ITR, what must the sanctioning authority do?
A. Reject the loan outright
B. Accept it without query
C. Justify acceptance with proper documentation
D. Ignore it
Answer: C
16. What additional source of income can be considered for calculating repayment
capacity, up to 25% of GAS/I?
A. Bonus
B. Rental income
C. Gratuity
D. Sale of shares
Answer: B
17. When is valuation of mortgaged property required for standard home loan
accounts?
A. Annually
B. Every 3 years
C. Only at disbursement
D. Every 6 months
Answer: B
18. What is the minimum CIC score for getting preferential interest rate under DBGB
Home Loan?
A. 600
B. 650
C. 680
D. 700
Answer: D
19. Which of the following can not be financed under DBGB Home Loan scheme?
A. Solar power systems
B. Under-construction houses
C. Commercial buildings
D. Additions to flat
Answer: C
20. For salaried applicants, in which case may Form 16/ITR be waived?
A. No fixed salary
B. Newly joined job
 C. Permanent employees with salary below taxable limit, having salary account with
DBGB
D. Working in unlisted companies
Answer: C
21.  In DBGB Home Loan, the income of whom can be clubbed to determine
repayment capacity?
A. Non-earning children
B. Friends
C. Earning spouse and earning children
D. Builder’s income
Answer: C
22.  Who can be added as co-borrower if the property is in the name of son and
daughter-in-law?
A. Employer
B. Parents (including in-laws) with ROCAC-II approval
C. Friends
D. Cousins
Answer: B
23.  What is the definition of 'Absolute Threshold Exposure' in the context of rate of
interest for add-on home loans?
A. Value of the property only
B. Outstanding loan + proposed loan
C. Total sanctioned limit
D. Customer’s net worth
Answer: B
24.  Repayment for house repairs/renovation must be completed within:
A. 10 years
B. 20 years
C. 15 years
D. 30 years
Answer: C
25.  What is the maximum margin required for home loans above ₹75 lakh (standard
case)?
A. 15%
B. 20%
C. 25%
D. 30%
Answer: C
26.  Which charges are not considered as margin contribution by the borrower?
A. Registration charges
B. Furnishing costs
C. Plot acquisition cost
D. Renovation expenses
Answer: A
27.  Interest rate on DBGB Home Loan is benchmarked to:
A. RLLR
 B. Bank Rate
C. MCLR
D. Repo Rate
Answer: C
28.  Fixed interest rate loans are subject to a reset clause every:
A. 3 years
B. 2 years
C. 1 year
D. 5 years
Answer: D
29.  What fee is charged for changing from fixed to floating interest rate (after 3
years)?
A. 0.5% of sanctioned amount
B. 1%–2% of outstanding amount
C. ₹5,000 flat
D. No fee
Answer: B
30.  Moratorium period for under-construction flats is maximum:
A. 18 months
B. 24 months
C. 36 months
D. 48 months or as per RERA, whichever is earlier
Answer: D
31.  Which account must be used to debit service charges before disbursement?
A. Builder’s account
B. Loan account
C. Borrower’s SB/CA account
D. Third-party account
Answer: C
32.  Who bears legal and valuation charges in takeover of loans ≥ ₹25 lakh (with CIC
score ≥ 700)?
A. Customer
B. Bank
C. Co-borrower
D. Builder
Answer: B
33.  Loans to purchase plot must see construction completed within:
A. 6 months
B. 1 year
C. 2 years
D. 3 years
Answer: D
34.  Penalty for not constructing on a plot within prescribed period is:
A. ₹1,000 fine
B. 2% additional interest from first disbursal date
C. Loan cancellation
 D. Legal notice
Answer: B
35.  In takeover cases, what should the bank obtain from the sub-registrar office?
A. Stamp paper
B. Certified copy of title deed
C. Identity proof
D. Builder’s PAN
Answer: B
36.  Which of these is NOT a requirement for releasing a reimbursement loan?
A. Loan request within 3 months
B. Verification of original source of funds
C. Construction must be complete
D. Loan request within 6 months
Answer: D
37.  Maximum EMI-to-GAS/I ratio allowed without special approval for income up
to ₹5 lakh is:
A. 40%
B. 45%
C. 50%
D. 60%
Answer: C
38.  Under DBGB Pride scheme, what is the interest concession on loans up to ₹50
lakh for CIC score ≥750?
A. MCLR only
B. MCLR + 0.05%
C. MCLR + 0.10%
D. MCLR – 0.10%
Answer: B
39.  What type of property insurance must the borrower maintain?
A. Market value insurance
B. Reconstruction cost insurance
C. Life insurance
D. RERA guarantee
Answer: B
40.  Interest certificates must be issued to borrowers by:
A. 15th March every year
B. Upon request only
C. Automatically by 30th April
D. Never issued
Answer: C

41. Home loan accounts must be registered with which of the following?
A. UIDAI
B. GSTIN
C. SI/NACH Mandate/operative account
 D. RERA authority
Answer: C
42. What is the maximum loan repayment age limit under normal approval?
A. 60 years
B. 65 years
C. 70 years
D. 75 years
Answer: C
43. Who can relax the maximum repayment age to 75 years?
A. Branch Manager
B. ROCAC-I
C. ROCAC-II and above
D. Legal Officer
Answer: C
44. Which type of borrower may be exempted from ITR requirement if account is with
DBGB and income is below taxable limit?
A. Businessmen
B. Temporary employees
C. Government salaried pensioners
D. Real estate agents
Answer: C
45. Rate of interest for CRE (Commercial Real Estate) classified home loans is:
A. Normal ROI
B. 0.25% higher than normal
C. 0.50% higher than normal
D. Fixed rate only
Answer: C
46. For home loan takeover from other banks, who must examine ownership proof?
A. Legal officer only
B. Counsel and branch manager
C. Borrower’s advocate
D. Sub-registrar
Answer: B
47. Fixed rate loans are reviewed every 5 years starting from:
A. First disbursal month
B. Financial year basis (April–March)
C. Anniversary date
D. Calendar year
Answer: B
48. Can HUF (Hindu Undivided Family) apply for DBGB Home Loan?
A. Yes, under normal scheme
B. Yes, under CRE
C. No, not eligible
D. Yes, with ROCAC approval
Answer: C
49. Loan disbursement for under-construction property must be:
A. Paid in full in advance
B. Based on progress and stages of construction
C. Paid after possession
D. Paid after sale deed only
Answer: B
50. Security verification for standard accounts must be done:
A. Annually
B. Every 2 years
C. Quarterly
D. Monthly
Answer: B
51. For NPA accounts, security inspection must be done:
A. Once a year
B. Only at disbursement
C. Half-yearly
D. Monthly
Answer: C
52. Reimbursement for self-purchased property is allowed if claimed within:
A. 1 month
B. 2 months
C. 3 months
D. 6 months
Answer: C
53. EMIs must be recovered preferably through:
A. Cheques only
B. Post-dated cheques
C. SI/NACH/ECS
D. Builder account
Answer: C
54. Penalty interest for loan default is:
A. 1%
B. 2%
C. 3%
D. No penalty
Answer: B
55. Who must approve the takeover of home loans from non-bank financial sources?
A. Branch Manager
B. ROCAC-II and above
C. Internal Auditor
D. Credit Analyst
Answer: B
56. Maximum repayment term including moratorium for purchase/construction:
A. 15 years
B. 20 years
C. 25 years
 D. 30 years
Answer: D
57. For flat/house purchase from private builders, what is required if project is not
bank approved?
A. Builder’s net worth
B. Builder's credentials, NEC, statutory approvals, site visit
C. Police clearance
D. Builder affidavit
Answer: B
58. Car parking cost can be included only if it qualifies under:
A. Open parking
B. Society parking
C. “Garage” under RERA definition
D. Builder invoice
Answer: C
59. Home loan proposals for customers with residence and property at different
locations can be sanctioned by:
A. Only HO
B. Branch near residence or place of work
C. Builder’s branch
D. RERA office
Answer: B
60. Which statement is true regarding interest certificate issuance?
A. Issued only on demand
B. Not issued for new accounts
C. Must be dispatched by 30th April
D. Only for salaried persons
Answer: C

MCQs 61–80

61. Loan amount is determined based on:

A. Sale deed alone
B. Realizable value or sale consideration, whichever is lower
C. Property tax receipt
D. Loan requested by borrower
Answer: B
62. For salaried individuals with <2 years of service, what is required for loan
eligibility?
A. 6 months of ITRs
B. Verified 12-month salary slips/account statement
C. NOC from previous employer
D. Income certificate
Answer: B
63. Who is authorized to approve home loan reimbursement cases?
A. Branch Manager
B. HOCAC-I
C. ROCAC-II and above
D. Loan Officer
Answer: C
64. How is interest calculated during moratorium in Case 1 scenario (no servicing)?
A. Paid monthly
B. Spread over EMIs
C. Paid at end
D. Waived
Answer: B
65. Maximum repayment for repairs/alteration loans:
A. 10 years
B. 15 years
C. 20 years
D. 25 years
Answer: B
66. Under what scheme code are home loans to be opened?
A. HMLN
B. TLPHL
C. DBGB-HOME
D. HLGEN
Answer: B
67. How is EMI calculated for fixed repayment with moratorium?
A. Excluding interest
B. Including estimated accrued interest
C. Only on interest
D. Paid quarterly
Answer: B
68. Moratorium for renovation is maximum:
A. 3 months
B. 6 months
C. 9 months
D. 12 months
Answer: B
69. Pre-payment penalty for floating rate loans is:
A. 2%
B. 1%
C. Nil
D. 0.5%
Answer: C
70. What is the penalty interest on unsanctioned third property purchase?
A. Treated as normal loan
B. 0.5% additional interest as CRE
C. No penalty
 D. Disallowed
Answer: B
71. Maximum LTV for loans above ₹75 lakh under special condition (CIC score ≥680):
A. 75%
B. 85%
C. 70%
D. 80%
Answer: D
72. What is the purpose of Tripartite Agreement?
A. Builder promotion
B. Joint legal ownership
C. Secure interest of bank before mortgage
D. Reduce interest
Answer: C
73. Who issues the Provisional Sanction Letter?
A. Regional Office
B. MIS server by branch
C. Central office only
D. Legal department
Answer: B
74. Validity of Provisional Sanction Letter is:
A. 1 month
B. 3 months
C. 6 months
D. Until withdrawn
Answer: B
75. How is construction progress verified before disbursement?
A. Through builder affidavit
B. Online pictures
C. Site visit by bank official
D. Self-declaration
Answer: C
76. Can DBGB finance standalone land/plot purchase?
A. No
B. Yes, up to ₹50 lakh or ₹100 lakh with approval
C. Only if agricultural land
D. Only through builder
Answer: B
77. In absence of TPA from govt. agencies, what may be used to secure loan?
A. Third party bond
B. Negative lien and power of attorney
C. Builder guarantee
D. Promissory note
Answer: B
78. Which document is not mandatory for all borrowers?
A. KYC
 B. Title deed
C. Rental agreement
D. Loan application
Answer: C
79. What is the minimum upfront service charge on any home loan?
A. ₹1,000
B. ₹2,500
C. ₹3,000
D. ₹1,500
Answer: B
80. Who approves loans to corporate executives banking with DBGB?
A. Head Office only
B. HOCAC-I and above
C. Branch manager
D. Credit officer
Answer: B

MCQs 81–100

81. Which authority is responsible for ensuring compliance with DBGB Home Loan
guidelines?
A. Builder
B. Legal Officer
C. Inspecting Officials
D. Borrower
Answer: C
82. Loan under Home Loan scheme can be extended to which class of professionals?
A. Only salaried
B. Only chartered accountants
C. All professionals with stable income
D. Only government doctors
Answer: C
83. Which is considered indirect finance under RBI's home finance categorization?
A. Direct loan to borrower
B. Loan to builder
C. Investment in NHB/HUDCO bonds
D. Loan against gold
Answer: C
84. What percentage of loan amount can be financed for furnishing?
A. 10%
B. 15% or ₹50 lakh, whichever is lower
C. 20%
D. 25%
Answer: B
85. Which category of income is not considered while calculating repayment capacity?
A. Salary
 B. Rental income
C. Interest income
D. Lottery winnings
Answer: D
86. Income of earning daughter-in-law can be clubbed for loan eligibility if:
A. She is nominated on property
B. She lives with the borrower
C. She is made co-borrower
D. She is a guarantor
Answer: C
87. Loan to salaried individuals is assessed using:
A. Past 6 months bank statement only
B. Property valuation only
C. Latest salary slip and Form 16/ITR
D. Employer guarantee
Answer: C
88. Loan repayment method may be graduated based on:
A. Builder’s estimate
B. Future expected income rise
C. RBI approval
D. Loan size
Answer: B
89. What minimum CIC score must all borrowers have to avail 80% LTV for loans >
₹75 lakh?
A. 600
B. 650
C. 680
D. 700
Answer: C
90. For fixed interest rate loans, when is the interest rate re-set due?
A. On disbursal date
B. After every 3 years
C. After 5 years from April 1 of the first disbursal year
D. At borrower’s request
Answer: C
91. In home loan cases, valuation of property is:
A. Optional
B. Mandatory at sanction
C. Not required if below ₹10 lakh
D. Required only for takeover
Answer: B
92. Which home loan accounts are NOT eligible for takeover?
A. With outstanding less than ₹1 lakh
B. With irregular repayment track
C. From NBFCs
 D. From government institutions
Answer: B
93. For salaried individuals, income is verified from:
A. Family declaration
B. Salary slips and bank statement
C. Property documents
D. Form-15G
Answer: B
94. Which of the following is included in the cost of the house for LTV calculation (if
cost ≤ ₹10 lakh)?
A. Furniture
B. Stamp duty and registration charges
C. Personal loan
D. Car value
Answer: B
95. Home loan insurance is based on:
A. Market value of house
B. Loan amount
C. Reconstruction cost
D. Property tax value
Answer: C
96. Which of the following may be obtained for EMI recovery if NACH/ECS is
unavailable?
A. Builder’s cheque
B. Post-dated cheques or Standing Instructions
C. Repayment schedule
D. Lease agreement
Answer: B
97. Takeover of loans from which category is allowed by RM and above on merits?
A. Real estate brokers
B. NBFCs and moneylenders
C. Non-bank institutions (if loan was for housing purpose)
D. Cooperative societies
Answer: C
98. What happens when borrower makes partial loan repayment?
A. Loan is closed
B. Interest increases
C. EMIs may be re-fixed
D. New mortgage needed
Answer: C
99. For loan disbursement linked to builder demand, what must be verified?
A. Borrower’s insurance
B. Site visit and stage of construction
C. Builder’s profit
D. Public notice
Answer: B
 100. Penal interest is charged from first disbursement date if plot is sold or left
unconstructed after:
A. 6 months
B. 1 year
C. 2 years
D. 3 years
Answer: D

MCQs 101–120

101. Income of joint property owners can be clubbed for repayment assessment if:
A. They live at the same address
B. They are family
C. They are made co-borrowers
D. They are guarantors
Answer: C
102. Parents can be co-borrowers and their income clubbed if property is in the
name of:
A. Siblings
B. Son or daughter (single or joint)
C. Uncle
D. Cousin
Answer: B
103. What is the maximum rental income that can be considered in repayment
capacity?
A. 50% of actual rent
B. 25% of total GAS/I or actual rental income, whichever is lower
C. Full rent
D. None
Answer: B
104. If mortgage is not possible immediately, what may be taken instead?
A. Promissory note
B. Builder's guarantee
C. Tripartite agreement
D. None
Answer: C
105. Loans on Lal Dora or ancestral property without title deed require:
A. Builder's affidavit
B. No security
C. Alternative security worth 125% of loan
D. Power of attorney
Answer: C
106. Insurance on mortgaged property must cover:
A. Market value
B. Circle rate value
C. Reconstruction cost
 D. Registration value
Answer: C
107. What insurance covers risks like flood, cyclone, terrorism etc. in DBGB
home loans?
A. Home Shield
B. Fire Policy
C. Premium Gold Plan
D. Life Shield
Answer: B
108. Optional group life insurance covers which risks?
A. Earthquake only
B. Natural and accidental death
C. Fire and flood
D. Theft
Answer: B
109. Maximum moratorium period for house construction loan is:
A. 12 months
B. 18 months
C. Till construction or 18 months, whichever is earlier
D. 24 months fixed
Answer: C
110. For ready house purchase, when should repayment start?
A. Immediately after sanction
B. 3 months after possession or advance, whichever earlier
C. 6 months after disbursal
D. Upon builder demand
Answer: B
111. Disbursement in under-construction projects should:
A. Be lump sum
B. Follow RERA guidelines
C. Follow construction stages
D. Be disbursed post registration
Answer: C
112. Loan reimbursement is allowed if claimed within:
A. 1 month
B. 2 months
C. 3 months
D. 6 months
Answer: C
113. Which of these fees must be recovered before disbursement?
A. Stamp duty
B. Premium charges
C. Legal and valuation charges
D. Brokerage fee
Answer: C
114. In which case is mortgage verification required again before mortgage
creation?
A. At branch discretion
B. Where title delay exists between builder handover and mortgage
C. For plots only
D. None
Answer: B
115. What is the max repayment term (including moratorium) for home
purchase/construction?
A. 15 years
B. 20 years
C. 25 years
D. 30 years
Answer: D
116. Repayment for repairs/renovation must be completed in max:
A. 5 years
B. 10 years
C. 15 years
D. 20 years
Answer: C
117. Group housing society loans need:
A. Board resolution only
B. Builder license
C. Society's NOC and share certificate
D. Co-borrower certificate
Answer: C
118. Home loans for leasehold properties on PoA need:
A. Share certificate only
B. Affidavit
C. PoA and seller documents
D. Mutation certificate
Answer: C
119. Pre-construction cost of GST is treated as part of:
A. Registration charges
B. Stamp duty
C. House cost
D. Not applicable
Answer: C
120. Loans for solar installation under DBGB Home Loan must meet product
standards from:
A. RERA
B. RBI
C. MNRE or NABL-certified labs
D. ISO
Answer: C
MCQs 121–140

121. What is the penal interest in case of loan default?

A. 1% above the applicable rate
B. 2% above the applicable rate
C. 3% above the applicable rate
D. No penalty
Answer: B
122. What happens if construction isn’t completed within 3 years of plot loan
disbursement?
A. Loan is converted to personal loan
B. Penalty interest @ 2% from disbursement date
C. EMI suspension
D. No action
Answer: B
123. Under what condition may the penal interest be reduced to 1%?
A. Borrower request
B. Branch Manager approval
C. ROCAC-II/General Manager on merit
D. Legal opinion
Answer: C
124. For Gen-Next loans, what is the max age for at least one borrower whose
income is considered?
A. 35 years
B. 40 years
C. 45 years
D. 50 years
Answer: B
125. What is the minimum net monthly salary for Gen-Next loan eligibility?
A. ₹25,000
B. ₹30,000
C. ₹35,000
D. ₹40,000
Answer: C
126. What is the maximum repayment period under Gen-Next Home Loan?
A. 20 years
B. 25 years
C. 30 years
D. 35 years
Answer: C
127. What is the maximum moratorium period under Gen-Next Home Loan?
A. 36 months
B. 48 months
C. 60 months
D. 72 months
Answer: C
128. For Overdraft facility to existing home loan borrowers, maximum loan limit
is:
A. ₹10 lakh
B. ₹15 lakh
C. ₹20 lakh
D. ₹25 lakh
Answer: D
129. Overdraft facility cannot be extended to home loan borrowers who:
A. Have no insurance
B. Purchased plots where construction is incomplete
C. Have DBGB salary accounts
D. Have a CIBIL score > 750
Answer: B
130. Rate of interest for Overdraft under personal needs scheme is:
A. MCLR + 1%
B. MCLR + 1.25%
C. MCLR + 1.50%
D. MCLR + 2%
Answer: C
131. What is the repayment period for term loans under the personal needs
scheme?
A. 10 years or remaining period of HL, whichever is lower
B. 15 years fixed
C. 7 years
D. Flat 20 years
Answer: A
132. When can a borrower switch between fixed and floating interest rates?
A. Anytime after sanction
B. After 1 year
C. After 3 years
D. Never
Answer: C
133. Fee for switching from fixed to floating interest (after 3 years) is:
A. Nil
B. ₹2,000
C. 1%–2% of outstanding balance
D. Flat ₹5,000
Answer: C
134. If interest rate increases, borrower can:
A. Increase EMI
B. Extend tenure
C. Repay lump sum at end
D. All of the above
Answer: D
135. In default of overdraft interest for 2 consecutive months:
A. Loan is recalled
 B. Penal interest applies and bank may take corrective action
C. EMI is waived
D. Conversion to term loan
Answer: B
136. Term insurance cover under Gen-Next scheme must be at least equal to:
A. Property value
B. EMI
C. Loan amount
D. Income level
Answer: C
137. Gen-Next borrowers must service interest during moratorium:
A. Annually
B. Only after possession
C. As and when levied
D. After 5 years
Answer: C
138. Loan switch from base rate to MCLR is allowed based on:
A. CIBIL score
B. Repayment history only
C. Branch discretion
D. Approval from RBI
Answer: A
139. Penalty for non-servicing interest on OD within 7 days is:
A. ₹1,000
B. 1% extra interest
C. 2% penal interest
D. No penalty
Answer: C
140. Overdraft top-up is allowed only when:
A. Home loan is closed
B. Salary account is with another bank
C. Original HL is active and regular
D. Builder request received
Answer: C

MCQs 141–160

141. What is the maximum loan allowed for standalone plot purchase in
Metro/State Capitals?
A. ₹25 lakh
B. ₹50 lakh
C. ₹100 lakh
D. ₹500 lakh
Answer: C
142. For composite loans, what is the max % of eligible loan that can be used for
plot purchase with ROCAC-II approval?
 A. 60%
B. 70%
C. 80%
D. 100%
Answer: C
143. What is the max loan for rooftop solar installation under the scheme for
systems up to 10kW?
A. ₹2 lakh
B. ₹5 lakh
C. ₹7.5 lakh
D. ₹10 lakh
Answer: D
144. Which code is assigned to the solar power loan component under DBGB
home loan?
A. SOLARSYS
B. SOLARELS
C. TLGPL
D. HLGEN
Answer: B
145. Disbursement for composite loan construction is made:
A. After possession only
B. In equal halves
C. In stages based on construction progress
D. With builder’s NOC
Answer: C
146. Solar system components must be certified by:
A. NABARD
B. MNRE or NABL labs
C. ISO-9001 labs
D. Local DISCOM
Answer: B
147. What is the minimum capacity of solar system eligible under DBGB scheme?
A. 0.5 kW
B. 1.0 kW
C. 2.0 kW
D. 3.0 kW
Answer: B
148. Repayment period for solar power system loan is as per:
A. MNRE guidelines
B. RBI circular
C. DBGB housing loan scheme
D. Solar vendor terms
Answer: C
149. Margin for standalone plot purchase is:
A. 15%
B. 20%
 C. 25%
D. 30%
Answer: C
150. Security verification for standard home loan accounts must be carried out:
A. Monthly
B. Half-yearly
C. Annually
D. Once in two years
Answer: D
151. Penalty interest on plot loans where no construction within 3 years is:
A. 1%
B. 1.5%
C. 2%
D. 2.5%
Answer: C
152. Which authority can reduce the above penal interest by 1%?
A. BM
B. HO Law Dept
C. HOCAC-I and above
D. RBI
Answer: C
153. Scheme code for composite home loan is:
A. HLGEN
B. TLHCO
C. DBGB-HOME
D. TLPHL
Answer: B
154. Service charge for solar loan is:
A. 0.35% of loan amount (min ₹2,500, max ₹15,000)
B. ₹5,000 flat
C. 1% of loan
D. No charge
Answer: A
155. Revaluation for standard home loan accounts is required:
A. Yearly
B. Half-yearly
C. Once every 3 years
D. Not required unless NPA or top-up
Answer: D
156. Loan for solar power installation is classified under:
A. Renewable energy portfolio
B. Personal loan
C. Retail housing loan
D. Infrastructure lending
Answer: C
 157. What must be collected from borrower before composite loan disbursement?
A. Aadhaar and PAN
B. Photograph of site
C. CERSAI ID, charge tab and construction completion date
D. Vendor invoice
Answer: C
158. Which category of borrower can apply for solar loan under DBGB scheme?
A. Housing board tenants
B. Only salaried
C. Individual or joint owners of residential houses
D. Shopkeepers
Answer: C
159. Financing of solar systems under DBGB is applicable only if:
A. Installation is done by DISCOM
B. Ownership of house is with borrower
C. Borrower is in subsidy list
D. Property is commercial
Answer: B
160. Which field is mandatory to fill before construction disbursement in CBS?
A. KYC and PAN fields
B. Construction address only
C. Registration date, asset ID, and completion date
D. None of the above
Answer: C

MCQs 161–180

161. What is the minimum CIC score to avail full interest benefit under DBGB
Pride for loans ₹5 lakh and above?
A. 650
B. 680
C. 700
D. 750
Answer: C
162. In joint applications, CIC scores of applicants with values -1 or 0 should be:
A. Counted at full weight
B. Included in average
C. Excluded from average
D. Averaged with spouse
Answer: C
163. What is the interest rate benefit for DBGB Pride customers (CIC ≥750) for
loans up to ₹50 lakh?
A. MCLR
B. MCLR + 0.05%
C. MCLR + 0.15%
 D. MCLR + 0.25%
Answer: B
164. What extra ROI applies for 3rd or subsequent house/flat under CRE?
A. 0.25%
B. 0.50%
C. 0.75%
D. 1.00%
Answer: B
165. Loan accounts classified under CRE are determined based on:
A. Number of borrowers
B. Loan size
C. Number of house ownerships
D. Market value
Answer: C
166. If no option is exercised during interest rate revision, bank will:
A. Extend tenure
B. Increase EMI
C. Pre-close account
D. Waive interest
Answer: A
167. Maximum repayment period if loan is restructured for standard account:
A. 20 years
B. 25 years
C. 30 years
D. Up to age 75 with approval
Answer: D
168. Takeover of home loan from NBFC is permitted if:
A. Loan is regular and used for housing
B. CIBIL score is < 650
C. Property is commercial
D. Documents are missing
Answer: A
169. Who bears NEC/valuation/legal charges for home loan takeover of ₹25 lakh+
with CIC ≥700?
A. Borrower
B. Builder
C. DBGB
D. Lawyer
Answer: C
170. During takeover, how should original title deed be reviewed if held by
previous bank?
A. Wait until closure
B. Ignore
C. Certified copy via Sub-Registrar and legal counsel
D. Photocopy from borrower
Answer: C
171. What document must be obtained from a borrower to directly collect the
conveyance deed from authorities?
A. Power of Attorney
B. Sanction letter
C. Post-dated cheque
D. Valuation certificate
Answer: A
172. Security for solar system financed under DBGB is created via:
A. Builder’s lien
B. Pledge of shares
C. Mortgage + Hypothecation
D. Term deposit lien
Answer: C
173. Rate of interest for solar system component is:
A. MCLR + 2%
B. Fixed @ 10%
C. As per home loan scheme
D. RBI Benchmark
Answer: C
174. Insurance for solar systems must cover:
A. Builder loss
B. GST liabilities
C. Entire loan term
D. Loan margin
Answer: C
175. Service charges for solar system loan under home loan scheme:
A. Nil
B. ₹1,000 flat
C. 0.35% of loan (min ₹2,500, max ₹15,000)
D. 1% of project cost
Answer: C
176. CERSAI registration is mandatory for:
A. Term loans only
B. Only plots
C. All secured home loans
D. Loans above ₹1 crore
Answer: C
177. Which software is used to generate home loan interest certificate in DBGB?
A. HRMS
B. Finacle (HINTCERT)
C. SAP
D. MS Excel
Answer: B
178. Where mortgage is not immediately possible, what alternative does DBGB
accept?
A. Guarantor income
 B. Power of Attorney + Negative Lien
C. Builder’s cheque
D. Lease deed only
Answer: B
179. Under composite loan, how much of eligible loan can ROCAC-II approve for
plot cost?
A. 60%
B. 70%
C. 80%
D. 90%
Answer: C
180. Loans for solar systems are classified under:
A. Corporate Lending
B. Infrastructure Finance
C. Retail Home Loan Portfolio
D. MSME Priority Lending
Answer: C

MCQs 181–200

181. What is the max period within which reimbursement of purchased property
can be claimed?
A. 1 month
B. 3 months
C. 6 months
D. 12 months
Answer: B
182. Loan for plot and construction will attract penal interest if house not
constructed within:
A. 1 year
B. 2 years
C. 3 years
D. 5 years
Answer: C
183. Tripartite Agreement (TPA) is executed among the borrower, bank and:
A. Local Government
B. Builder/Development Authority/Housing Board
C. Home loan guarantor
D. Registrar
Answer: B
184. In the absence of TPA with government agencies, which is not a required
safeguard?
A. Original allotment letter
B. Negative lien
C. Rent agreement
 D. Power of Attorney
Answer: C
185. When can disbursement for construction begin?
A. Before plot registration
B. After mortgage creation and CERSAI ID capture
C. After builder approval
D. At buyer’s request
Answer: B
186. What must be filled in CBS before releasing construction disbursement?
A. EMI and CIBIL details
B. CERSAI ID, mortgage creation date, construction completion date
C. Stamp duty and legal charges
D. None of the above
Answer: B
187. How often should security verification be done for regular loan accounts?
A. Monthly
B. Half-yearly
C. Every 2 years
D. Every 3 years
Answer: C
188. Which component should be used to insure home loan properties?
A. Market value
B. Sanctioned amount
C. Reconstruction cost
D. Builder invoice
Answer: C
189. Which risk is not covered under Fire Policy suggested for DBGB housing
loan borrowers?
A. Terrorism
B. Earthquake
C. Personal accident
D. Cyclone
Answer: C
190. The cost of group life insurance under home loan is:
A. Financed as part of loan above LTV
B. Mandatory
C. Paid by the bank
D. Equal to market value of house
Answer: A
191. Under DBGB, how is insurance cost treated during appraisal?
A. Added to sanctioned limit
B. Ignored
C. Deducted from borrower margin
D. Paid as stamp duty
Answer: A
192. To ensure interest servicing on OD is on time, EMIs should be routed via:
A. Manual deposits
B. Linked savings account
C. Overdraft account
D. Builder payments
Answer: C
193. What is the documentation charge for any housing loan under DBGB?
A. ₹500
B. ₹1,000
C. ₹1,350
D. NIL
Answer: C
194. Overdraft on top of home loan can be reviewed every:
A. 6 months
B. 1 year
C. 2 years
D. 3 years
Answer: D
195. If interest on OD is not paid within 7 days of month-end, what is applied?
A. Loan is frozen
B. OD limit is reduced
C. Penal interest of 2%
D. Legal notice
Answer: C
196. Who has the authority to approve home loans on ancestral property without
title deed?
A. Branch Manager
B. Zonal Manager
C. ROCAC-II and above
D. Legal Officer
Answer: C
197. What is the minimum salary required under DBGB Gen-Next Home Loan
scheme?
A. ₹25,000
B. ₹30,000
C. ₹35,000
D. ₹40,000
Answer: C
198. Loan repayments must be linked to which milestone?
A. Builder’s construction estimates
B. Borrower request
C. Stages of construction progress
D. Receipt of interest certificate
Answer: C
199. What should be verified before releasing balance disbursement for
renovation loan?
 A. GST invoice
B. Home insurance
C. Previous disbursement utilization
D. Builder’s affidavit
Answer: C
200. Loan for house/flat under construction must follow RBI advisory and be:
A. Disbursed fully at sanction
B. Linked to stages of construction
C. Paid to broker
D. Paid after EMIs begin
Answer: B