Baroda Gujarat Gramin Bank – Housing Loans
BGGB – HOUSING LOAN to INDIVIDUALS, Instant quotes on Rates, EMI, Documents, Loan Eligibility. Compare banks to get free quotes online.
Purpose :
- Construction, purchasing of new/old flats which are not older than 20 years.
- Purchase of plot of land subject to the condition that a house will be constructed thereon within -2- years from the date of purchase of plot.
- Repayment of the loan already availed from any other Bank / Housing Finance Company and or other sources, provided documentary evidences are produced.
- For repairs /renovation/improvement /extension of the existing house to :
- Our existing housing loan borrowers
- New borrowers
- Borrower who have availed housing loans from other bank / H F C
- For houses / flats constructed / purchased recently from own sources to good clients selectively and sparingly subject to following additional conditions.
Home Loan applications received for rupees ₹ 419,027 crores till 21 November 2024
Eligibility:
- Age: Minimum age must be 21 years. Principal applicant must be employed minimum for last three years. However, the minimum age of co- borrower can be 18 years. Age of the borrower plus repayment period should not be beyond retirement age in case of salaried persons and 65 years in case of others.
- Person who is already owing a house is also eligible for housing loan for construction / buying a second house / flat in the same village / town / city or other village / town for the purpose of self- occupation.
- Person who has been provided accommodation by his / her employer is also eligible for loan ,even through he / she is not in a position for its occupation in the near future and proposes to let out on rental basis.
- Housing loan to HUF are not to be considered as the housing loan is not meant for the purpose of family business of HUF and also there are certain legal complications.
- In the case of individuals who have taken loan for construction /acquisition of house / flat from other bank / HFC and need supplementary finance, loan may be considered after obtaining part passu or second charge over the property mortgaged in favour of other bank/ HFC and or /against such other security as deemed appropriate.
Maximum Amount of loan :
- Rs. 15.00 lacs.
- For repairs / renovation /extension : Rs. 5.00 lacs
- However, total amount of the loan sanctioned including loan for repair / renovation /extension should not exceed Rs. 15.00 lacs.
- The above is the maximum amount of loan. However the actual quantum of loan should be arrived at after consideration the income criteria and repaying capacity as laid down under point No. 4 & 5 herein below.
Income Criteria :
The maximum amount of loan should not exceed the following :
- In case of salaried persons equal to 40 months gross income subject to repaying capacity.
- In case of others viz. Professionals / self employed / business persons etc., -4- times of net average (last three years ) annual income plus depreciation.
- Wherever income of the family members is clubbed, they should be made co –borrowers.
- Considering the average life expectancy of about 65 years, the pension income is not to be included in the income for calculating the eligible loan amount.
Repaying Capacity :
-
Repaying capacity of the borrowers is to be calculated at 40% of the borrower’s gross income.
-
However, higher repayment capacity may be determined by taking into account age, income qualification, number of dependents, assets, liabilities stability / continuity of employment / business of the applicant and the co-applicant’s income.
Margin :
-
For purchase of plot: 20% of the cost of plot including registration charges and cost of stamp etc.
-
For houses / flats already constructed from own resources and loan is taken subsequently : 20% of the cost of construction / purchase price of house / flat.
-
For all other cases: 15% of the cost inclusive of cost of land, registration charges and cost of stamp etc.
-
For the purpose of finance, the cost should be estimated after obtaining valuation report from Bank’s approved valuer on a realistic basis at the current market value / cost of construction and other legal charges viz. Stamp duty, registration charges, legal expenses etc.
Security :
- Mortgage of the property constructed / purchased.
- If mortgage is not feasible, branch can accept at its discretion, security of adequate value in the form of life insurance policies, Government Promissory Notes, shares and debentures, gold ornaments or such other security as may be deemed adequate including third party guarantee from individual /s.
- Even if it is possible to create equitable mortgage but customer desires that the equitable mortgage need not be insisted upon, in case branch may as a special case , accept at its discretion, security of adequate value in the form of life insurance policies, Government Promissory Notes, shares and debentures, gold ornaments or such other security as may be deemed adequate along with stamped undertaking that the borrower shall not create any charge on the said property to any third party and that he will create mortgage of the dwelling units / housing property at a later date if desired by the bank, be obtained from borrower. Margin on above securities is to be maintained as per extant guidelines applicable for financing against those securities.
Rate of interest :
| TENURE | FIXED RATE ( % p.a. with monthly rest) |
| Upto 5 years | 9.00 |
| Over 5 years and up to 10 years | 9.25% |
| Over 10 years | 9.50% |
Repayment period :
-
Maximum – 25 – years.
-
Moratorium period maximum – 18 months or one month after completion of house / taking possession of flat / house which ever is the earliest.
-
Age of the borrower plus repayment period should not be beyond retirement age in case of salaried persons and 65 years in case of others.
-
The repayment period can be extended up to 65 years of the age in case of salaried persons drawing pension subject to the condition that 40% of the pension is sufficient to pay EMI .In case EMI exceeds 40% of the pension, the borrower to deposit adequate amount in the loan account so as to reduce the outstanding amount of loan to the extent which can be serviced by 40 % of the pension.
-
In exceptional cases, this term may be extended beyond above age limit if borrower pledges FDRs / NSCs / Government Security etc. to ensure continuity of income for repayment of loan installment with interest if sanctioning authority is satisfied about the same.
Disbursement of loan :
-
Outright purchase of house /flat ready for possession – Disbursement in one installment directly to the seller of the house / flat.
-
Construction of house / flat in 3 to 4 stages after physical verification depending on the progress of construction. Payment can be made either to the builder directly or to the borrower subject to verification of bills / money receipts / invoices etc. or certificate issued by approved valuer / architect certifying the progress of the work and the estimated expenditure having incurred thereof as the case may be. During the course of construction at least once valuation report from Bank’s approved / Government valuer must be obtained.
-
In case of repair / extension – Directly to the borrower subject to verification of bills / money receipts etc.
Processing charges :
- New loans : Upfront fee @ 0.25% of loan amount only once at the time of sanction.
- In case of loans taken over from other Banks/HFCs : NIL
- Documentation charges (only once at the time of first disbursement )
| Loan Limit | Charges |
| Upto Rs. 50,000/- | Nil |
| Above Rs. 50,000/- Upto Rs. 2/- lacs | Rs. 166/- |
| Above Rs. 2/- lacs Upto Rs. 5/- lacs | Rs. 1,105/- |
| Above Rs. 5/- lacs Upto Rs. 15/- lacs | Rs. 1,655/- |
