Facility wise Terms and Conditions

Housing loan for Purchase of Ready to occupy land and Residential House or Villa

1.On receipt of the Original sale deed from SRO , the same to be submitted.
2.Property valuation will be done on completion of Repairs .
3.Cost over run in project, if any, shall be met by the borrower from own sources without recourse to interest
bearing debt.
4.Mutation of land & building to be got effected.
5.Payment to be made direct to seller of the property with margin contribution from the borrower,by draft
payorder, consent of the borrower to be obtained for direct payment.
6.Assets financed by the Bank to be insured for full value with bank clause against all risks and the same
should be periodically renewed and charges to be borne by the borrower. Copies of the insurance policy
should be kept on record.
7.Balance loan for purchase to be released at the time of registration of sale deed and only after getting the
security documents from the existing Bank. Stamped receipt for the advance paid by the buyer, if any, to be
obtained and kept with loan documents.
8. If property to be Purchased is mortgaged with any Bank/FI:
a .If loan is disbursed and sale deed registered in the name of buyer after closure of the existing loan in the
n/o the seller with previous Bank/FI, No due certificate from the previous Bank/FI, to be obtained,before
disbursing the loan b.If the loan proceeds is disbursed directly for closure of the existing loan with Bank,/FI,in
the n/o the seller.
9.Sale ded to be registerd n/o of buyer.
10.Undertaking to be obtained from buyer and seller for release of loan proceeds directly to the existing
Bank /FI for closure of the existing loan in the name of seller and authorizing existing Bank/ FI to hand over
the original primary deed and relating documents to the authorized representative of the Bank.
11.Letter authorizing bank to take delivery of sale deed directly from SRO and got accepted from SRO
12.A letter to be issued to the existing Bank /FI requesting them to
a. Inform the liability outstanding with them and confirm the list of the title deeds deposited with the existing
Bank for security of the loan.
b. Confirm that on clearing the liabilities being reported by them , the documents pertaining to the securities
given by the party to themwill be handed over directly to the authorized representative of our Bank.
c. A letter with similar request to be obtained from the seller and copy of the same to be attached with our
letter to the existing Bank.
13.Road /right of access of min.6 ft is clearly mentioned in the draft sale deed should be ensured before
releasing the loan.
14. All purchase related sale agreements on which loan application are processed should be registered. Where
sale agreement is not registered, loan may be disbursed against undertaking from the loan applicant and
seller to register the sale agreement within 4 months from the date of sale agreement.
15. Loan will be extended against Agrement to mortgage.
16. Shortfall if any to be remitted by the buyer and will be disbursed to the credit of the seller along with loan
proceeds.
17.Seperate authorization letter authorizing bank to create equitable mortgage over the property in LD 1298
to be submitted.
18.EM will be created on receipt of sale deed, within 60 days from the date of registration of sale deed.