GSS Loans department will facilitate in following up with you and the respective Financial Institutions to:
Who can avail housing loan?
Following categories of individuals, in the age group of 18 to 55 years, including Non Resident Indians (NRIs) are eligible for housing loans:
Eligibility relating to upper age limit is relaxed selectively, subject to certain conditions.However, entire loan should be cleared before the borrower attains the age of 70 years.
What are the purposes for which housing loan is sanctioned?
What the quantum of loan?
If you are a salaried individual, maximum loan shall be limited to four years’ gross salary, subject to minimum Net Take Home Salary (NTH) of 40% after deduction of Installment (EMI) towards the proposed loan.Selectively NTH stipulation may be reduced to 25% of gross salary. If you are a non-salaried individual, maximum loan quantum shall be limited to four times gross annual income of the concluded financial year, during which housing loan is sought to be availed OR four times of average gross annual income of all the four years.
However, in all the above cases, higher quantum is considered selectively, subject to certain conditions.
Whether income of the family is reckoned for arriving at loan quantum?
In the case of salaried individuals/businessmen/self-employed persons, the income of the family may be taken into account, subject to documentary evidence, for the purpose of computing the quantum of eligible amount of loan.
Whether income of the spouse can be taken to determine repayment capacity?
Where family income includes the income of the applicant and the spouse, the spouse’s income is reckoned to determine the repayment capacity and compliance of NTH stipulation, provided such spouse joins execution of loan documents either as a co-obligant or as a guarantor.
Whether Agricultural income is considered for arriving at loan quantum?
Agricultural income is considered if it is supported by land records and income is reported in Income Tax Return, though not taxed.
What is the margin required to be borne by the applicant?
How is the margin computed?
The margin is computed on the basic project cost which shall not include expenses incurred towards stamp duty, registration and other documentation charges.
When is the margin required to be brought in?
Margin should be contributed before disbursement of the loan. However, pro-rata and stage-wise contribution of margin is selectively permitted.
Where housing loan is sanctioned for purchase of site and construction of house thereon, what is the maximum period within witch construction of the house should start?
Construction of the house should commence within a maximum period of (Depends on Bank) from the date of disbursement.
What is the penalty for not commencing construction of the house within the stipulated period?
Higher rate of interest is charged (Base Rate + 6%) from date of disbursement till date of commencement of construction.
Whether pre-payment penalty is charged:
Prepayment penalty is waived in respect of housing loans carrying floating rates of interest.
What are the repayment terms?
Entire loan together with interest (including repayment holiday if any),shall be repaid in within a maximum period of 30 years from the date of disbursement or the borrower attaining the age of 70 years whichever is earlier. Repayment period as above is permitted taking into account the earning / repaying capacity of the borrower and subject to legal heir/s joining as co-borrower / guarantor.
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