Maha Super Housing Loan Scheme for repairs/renovation/alteration of existing house/flat.

Scheme Name

Maha Super Housing Loan Scheme for repairs/renovation/alteration of existing house/flat.

Purpose

For Repair/renovation of an existing residential unit (fixed furnishing, immovable enhancements etc,) which add to the value of the residential unit, for existing and new borrower.

Eligibility 

A) For New borrower.

1. Residential House should be unencumbered.
2. Borrower should have obtained possession of the house property.
3. In case of takeover, loans under repair & renovation can be considered simultaneously along with takeover of housing loan.

B) For existing Housing Loan Borrower.

1. Construction of the property for which housing loan has been availed should be completed.
2. Borrower should have obtained possession of the house property.
3. Satisfactory repayment track record of last 6 months in existing Housing Loan. Satisfactory repayment record means Housing Loan account should not have classified as SMA-1 or SMA-2 or NPA in last six months.

Min. Annual Income

• For Salaried: Rs.3.00lakh (last year income) - Minimum past 2 year ITR/Form 16 from the Employer is Mandatory.
• For Self-employed Professionals: Rs.3.00lakh (as per last year ITR income) - Minimum past 2 year ITR with supporting documents are mandatory.
• For Businessmen: Rs.3.00lakh (as per last year ITR income) - Minimum past 2 year ITR with supporting documents are mandatory.
• For Persons engaged in Agriculture & Allied activities having ascertainable Minimum income of Rs.3.00lakh.

Age

Minimum: The applicant/s must be 21 years old (completed) as on the date of application. However, the minimum age of co-applicant/s can be 18 years.

Maximum:

• 65 Years for Professional working as self-employed i.e. for Doctors/Architects/CAs etc. and Businessman.
• 60 years for Salaried Individuals or Retirement age whichever is earlier.
• 70 Years for Pensioners

Eligible

Quantum of loan

Maximum quantum of finance: -

1. 100% of the actual cost of repairs/renovations/alterations.
2. Maximum Quantum: Maximum up to 25% of the realizable value of the property based on the latest valuation report not older than 3 months.
3. Permissible LTV norms

*Lower of (1) or (2) or (3)

The realizable value of the residential unit at the time of sanction of the loan plus estimated cost to be spent for repairs/renovation should be considered for the calculation of total LTV. This LTV ratio should not exceed the LTV ratio mentioned below: -

• Cost of Repair and Renovation of House – inclusive of the cost of all non-movable fixed assets, fittings; being constructed thereon.
• The LTV will be calculated on the estimated cost of Repair and Renovation, duly vetted by empanelled valuer / Govt. approved Architect/Engineer, plus the current realizable value of the House (as per the latest valuation report).

Deduction norms

For Salaried – Up to 80% on latest monthly salary

For Non Salaried -  Up to 80% on Average annual Income

Repayment

• Maximum Repayment period of 20 Years
• No Moratorium period is allowed.

Security

• For new borrower - Mortgage of the property to be repaired / renovated.
• Existing Housing loan borrower – Additional Mortgage of the property to be repaired / renovated.

Processing Fee & Other Charges

Processing Fee – 0.25% of sanctioned amount excluding GST (Min Rs.1000/- & Max Rs.25000/-)

Account Handling Charges – Rs 500/- + 0.10% of sanctioned amount excluding GST (Max Rs.11000/-)

Charges will be applicable as per service charge booklet issued by Bank from time to time.

Classification of loans as Priority sector

 For Repair and renovation of residential unit.

Rate of Interest

As per Rate of Interest structure defined in Maha Super Housing Loan Scheme.