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Power homes: UTI Bank home loan information
UTI Bank home loans have made it extremely easy to
purchase a hosue or plot in India
BY OUR CORRESPONDENT
9 June, 2005: Home loans have never been so easy after
India's license-permit Raj went for a toss. Now the roles have been reversed with banks queuing up in front of potential customers with a variety of offerings. The customer definitely is the king here.
UTI Bank offers loans for purchase of plot as well as construction of a house on it. Loans are also offered for building a plot on land already owned. For purchasing old houses or flat, the condition is that it shouldn’t be not more than 15 years old.
Under the improvement / extension plan loans are also extended to conduct renovation or repair works. The bank also takes up existing loans. Loans are also allotted against property. The bank stipulates that the property should be situated with a radius of 50 km from a UTI Bank branch.
Eligibility for home loan
The applicant should be 24 years of age when the loan commences. The loan period should end with superannuation . For salaried employees, any permanent employee who is in permanent government service or in any reputed firm having an UTI Bank is eligible provided the net minimum salary is Rs 7,500.
The net minimum salary should be Rs 8,000 for those who don’t have an account with UTI Bank. For availing the loan, the UTI Bank allows clubbing of income of husband and wife. For this the minimum aggregate net salary should be Rs 12,000, but the housing loan would be provided only to one of the spouses.
For professionals, the minimum net annual income should be Rs 1.50 lakhs for eligibility to avail loans. Doctors, engineers, dentists, architects, CAs, cost sccountants, company secretaries and management consultants are eligible. Clubbing the spouse’s income is permissible , but the net aggregate income should be more than Rs 12,000 per month. Here also, loan would be granted only to one person. The minimum age of the applicant should be 24 years on commencement of loan and when the loan tenure ends, the applicant should be less than 65 years.
For self-employed persons, clubbing of income of spouses is not permitted. The net annual income should be Rs 1.50 lakhs. The age criteria is the same.
Loan Amount limit
The minimum amount provided as loan by the ban is Rs 1 lakh, while the maximum is Rs 50 lakhs. The agreement , stamp duty, registration, car park, amenities (registered & unregistered), 2 years maintenance & society charges or 48 times the net monthly salary, whichever is less, can be availed.
For Indian professionals in the Rs1-50 lakh to Rs 2.40 lakhs per annum bracket, the loan amount would be 2.5 times of the average annual income. For those with income above Rs 2.40 lakhs, the loan amount would be 3 times the average annual amount.
For loans from Rs l lakh to Rs 50 Lakh availed in fixed interest rates, for up to five years an interest rate of 9.75% is charged. The equated monthly installments per lakh is Rs 2112 for 5 years.
From 5 to 10 years, the fixed interest rate is 10.25% and EMI would be Rs 1335 per lakh for ten years. For a 10-15 year loan period, interest rate is Rs 10.75% and EMI would be Rs 1121 for 15 years. For more than 15 years also the interest rate is 10.75%. The EMI per lakh would be Rs 1015 for 10 years.
In case of floating rates, for up to 5 years, 7.75% is charged. EMI would be 2016 per lakh for 5 years. Between 5 to 10 years, 10-15 years and above 15 years the rate is 8%, but the EMI would be Rs 1213 for 10 years, Rs 956 for 15 years and 836 for 20 years.
If the customer opts for switching to fixed from floating or vice versa, a charge of 1% on the outstanding capital is charged by the bank, subject to a minimum of Rs 5000.
The repayment period should not exceed 20 years, including moratorium period, for home acquisition plan/takeover of existing housing loan/takeover of existing housing loan with additional refinance.
For pre-allotment bookings, repayment period should not be above 1 ½ years. In case of renovation and extension of existing property or loan against existing property, repayment period should not exceed ten years.
The bank would not insist on collateral in case of flats or apartments being constructed by reputed builders, provided the project is on the pre-approved list of any two of the following housing finance firms: HDFC, SBI, LICHF, ICICIHF, HSBC and Citibank.
If the building is being constructed on a property already charged to the bank also no collateral is required. For loan amounts of Rs 10 lakh and above, the bank would conduct personal interviews of prospective customers. The property would have to be fully insured against all possible hazards during the loan period in favour of the bank and the cost of this should be borne by the borrower.
Disbursement of home loan
The loan would be directly disbursed to the builder, seller or the local authority or supplier of materials. For takeover of loans, the pay order/DD would be credited to account of the applicant.
The processing charge would be 1% of the loan amount. This would be collected along with the loan application. For early closure of loan, like takeover of the loan by another housing finance firm or bank, a charge of 2% of the principal outstanding amount is charged.
For takeover of housing loans with additional refinance, the total exposure should not exceed 85% of the loan. The stipulated maximum tenure is 20 years. Pre-allotment booking is offered only in case of properties being offered by state-run agencies like housing boards. Private firms or promoters are barred.
Loans for renovation or extension of existing property and loans against existing property are only offered to owners of existing property. In case of renovation or extension of existing property maximum tenure is 120 months. For loans against property, tenure is 10 years, with a diminishing interest of 12% per annum. Documents required
for home loan application
The bank seeks Indian passport or voter identity card or driving license and a photograph as proof of identity from customers.
Salaried employees should submit income proof like latest salary slip with all deductions or Form 16 with recent salary certificate. For others, income tax returns of last 2 years and income computation certificate by a chartered account is needed.
For both salaried customers as well as others, ration card, latest electricity bill, latest telephone bill, passport/latest credit card bill should be submitted for residence proof, apart from guarantor form. The UTI Power Home loan can be applied online also.
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