Allahabad Bank Housing Finance Scheme
The Oldest Joint Stock Bank of the Country, Allahabad Bank was founded on April 24, 1865 by a group of Europeans at Allahabad. At that juncture Organized Industry, Trade and Banking started taking shape in India. Thus, the History of the Bank spread over three Centuries - Nineteenth, Twentieth and Twenty-First.

The bank offers loans for property home loans for new as well as resale property at fixed as well as floating interest rates. Borrower can switch over at any point of time from floating to fixed or vice versa on payment of some charge. It also offers the option of balance transfer. The product offered is called 'Allahabad Bank Housing Finance Scheme'.

Target Group

Permanent salaried employees, Professionals & Self-Employed Persons, Businessmen, having regular income to liquidate the loans.

Purpose

1. For construction of residential house on land already owned.
2. For purchase of plot by salaried persons from Govt. Agency / Development Authority or any Govt. recognized agency (viz., HUDA, HOUSEFED) and construction of residential house thereon.
3. For purchase of house/flat to be used for residential purpose.
4. For renovation / extension / repair of residential house already owned.
5. For purchase of unfinished / old house (maximum 20 year old)
6. Renovation /extension / repair of the same.
7. For taking over of housing loans from other finance companies / financial institutions / banks.
8. Bank finance extended to a person who already owns a house in town / village where he resides, for buying / constructing a second house in the same or other town / village for the purpose of self occupation.
9. Bank finance extended for purchase of a house by a borrower who proposes to let it out on rental basis on account of his posting outside the headquarters or because he has been provided accommodation by his employer.
10. Bank finance extended to a person who proposes to buy an old house (Maximum 20 years old) where he is residing as a tenant.

Supplementary finance :

• Additional finance may be granted by the bank within the overall ceiling for carrying out alterations/ additions/repairs to the house/flat.
• Bank finance to individuals who have raised funds for construction / acquisition of accommodation from other sources and need supplementary finance from our bank after creating pari-passu charge over the property mortgaged in favour of other lenders and/or against such other security.

Eligibility

Housing Loan may be sanctioned to those who have regular income sufficient enough to liquidate the loan along with interest within stipulated period of repayment. The employees who have availed of housing loan from their own organisations may also avail of loan from the Bank under this scheme if they are having regular income sufficient to liquidate the loan within the stipulated period and are able to comply with other stipulations of the scheme.
Nature of Loan: Term Loan

Loan amount

• In case of salaried persons: The loan amount will be restricted to 60 times of monthly gross salary last drawn subject to the condition that it is within the project cost less stipulated margin and Total deductions including EMI of proposed loan should not exceed 40% of the Gross monthly salary of the applicant.
• In case of others: The loan will be restricted up to 4 times of gross Income average shown in last 3 years Income Tax Assessment Order/ acknowledged copy of income tax return subject to the condition that it is within the project cost less stipulated margin and Total deductions including EMI of proposed loan should not exceed 40% of the Gross monthly income of the applicant as per IT Returns.

Margin

25 % of project cost and in case of repairing / furnishing 25% in all categories (including salaried class)

Project cost will consist of -

• Purchase Price of Land/ House/ Flat, Plus
• Cost of construction/ renovation/ extension (if applicable) plus
• Stamp duty and registrations charges, as applicable plus Accrued Interest amount of moratorium period, if proposed to be capitalized
• It will be ensured that margin at all stages has been contributed by the borrower upfront where disbursement is to be made in phases.

Rate of Interest

- Float Interest Rate : 9.25
- Float Loan Eligibility : 19 to 27
- Tenure : 20
- Charge for Changing Fixed to Floating : 2%
- Charge for Changing Floating to Fixed : 0.50%

Fixed rate of interest will be subject to following conditions:

1. Subject to "interest rate reset" clause in terms of which fixed rates may be reset at the end of every three years on the basis of interest rate prevailing at that time.
2. Subject to "force maejure" clause in terms of which Bank is authorized to revise fixed interest suitably and prospectively in the event of major volatility in interest rates.
3. Borrower of housing loan may exercise the option to switch over at any point of time from floating to fixed or vice versa on the condition that borrower has to pay as under:

From Fixed to Floating- 2% of outstanding balance for exercising the option From Floating to fixed- 0.50% of outstanding balance for exercising the option

Security

Primary:

1. Equitable/ Registered mortgage of the property or
2. Pari- passu charge over the property if the borrower (salaried person) has already availed loan from his organisation.

Collateral Security :
Personal Guarantee of one person of means and standing acceptable to the Bank will be taken in all cases. However, in case of delay in creation of mortgage Personal Guarantee of two person of means and standing will be taken, where delay over 6 months in creation of equitable mortgage of the property to be financed by the Bank is expected. In case of delay in creation of equitable mortgage of the property beyond 6 months, collateral security to the extent of loan amount in the shape of immovable property or financial securities or personal guarantee of two persons of means & standing acceptable to the Bank will be taken. However, the same will not be needed where a property is being purchased from seller/builder as mentioned hereunder:

1. Housing Board/ Development Authority /Govt agency
2. Good rated /reputed housing company / builder/developer well known at national / state level (VIZ: Ansal, Gujarat Ambuja, Bengal Ambuja, Bengal Peerless, Sahara Housing). List of such reputed housing companies/ developers will be circulated by respective Zonal Offices after its careful scrutiny and a copy will be endorsed to Retail Credit Section, Head Office.
3. Approved Housing Societies notified by Zonal Offices.
4. Builders/Developers whose project has been approved by the Bank as per bank's guidelines. (Approval of housing projects for the purpose of tie-up arrangement for loan to their prospective buyers where builder/developer is not seeking finance from the bank for the housing project may now be accorded by the Zonal Head).
- Documentation : In a booklet form complete in all respect.
- Processing Fees : 0.50% of loan amount, Maximum Rs. 10,000/-
- Documentation Charge : Actual expenses / charges incurred for creation of mortgage.

Disbursement :

In case of purchase of flat / House payment should be made direct to seller / promoters / societies by DD/ Banker's cheque and should be issued in the name of builders with Bank account number on it. Bank's official should be sent for delivering the cheque / draft to the builders / sellers property at the registered addressed mentioned in the title deed.

In case of construction of new house / flat, loan will be disbursed in a phased manner, in 4 or more installments. Each such installment will be released only after verification of end use of funds already released by the bank.

Repayment Period & Moratorium :

Repayment Period:-

1. For construction of House &/ or Purchase of House/ Flat/Residential Plot: For salaried Persons-- Maximum 25 years or length of remaining service, whichever is less. For Others -- Maximum 20 years or remaining period in attaining an age of 65, which ever is earlier.
2. For Repairing/ Furnishing of House/ Flat: For salaried Persons-- Maximum 7 years or length of remaining service, whichever is less. For Others -- Maximum 7 years or remaining period in attaining an age of 65, which ever is earlier.
3. For Application Money raised by Housing Board/ Development Authority: 12 Months or receipt of refund order, which ever is earlier.
4. Other Norms on Repayment Period: Repayment period will be exclusive of moratorium period. If the borrower desires to repay the loan in shorter period, he/she may be allowed to do so and monthly installment will be fixed accordingly. Interest will be realised on monthly basis during the moratorium period. However, in case of salaried persons the interest amount may be capitalised (i.e. included in project cost) on request of the borrower.

Special Package to Housing Loan Scheme (Public)
All new Housing Loans (upto Rs.20.00 Lac for maximum period of 20 years) availed upto 30th June 2009 and shall not apply to swapping (takeover/ renewal) of loan w.e.f. 17/12/2008.