Vijaya Bank offers home loans to residents of India as well as Non-Resident Indians on interest rates; both fixed and floating. The banks offers housing loans for purchase of new or resale property, plots, repair or renovation of existing buildings & flats and short-term bridge finance. The bank also offers loans for take-over of home loans from other banks.

Individuals can avail of housing loans for the construction/acquisition of house/flat as well as for repair/renovation of the existing house/flat.

Purpose

The scheme covers financing

• For construction of a house building in the plot/site already purchased/ Owned
• For purchase of a plot/site and a house building thereon.
• For purchase of a new house/flat.
• For purchase of old house /flat of age of 30 years and below.
• For Repairs, Renovation (including cost of kitchen Cabinet, racks, wardrobes, electrical/solar power fittings) of existing house of age 50 years and below (HOME IMPROVEMENT LOAN).
• For extending the existing house building HOME EXTENSION LOAN.
• Short term Bridge Finance for the interim period between sales of the existing/ old house and purchase of a new house (HOME BRIDGE LOAN) – to the extent of 80% of market price of the existing house or 80% of cost of the new house to be purchased whichever is less but invariably against the Security of new house.
• For taking over of the existing Housing loans availed from other Banks/Other lending Companies/Agencies

Eligibility

• All individuals of 18 years and above age are eligible.
• The applicant/beneficiary shall have sufficient income to repay the loan along with the interest within sanctioned period.
• In case of salary income alone is considered for deciding the quantum of loan, such salaried persons should be in permanent service and not probationers: Persons nearing superannuation getting retirement benefits sufficient to cover the Loan applied can also be considered.
• Ex- Staff members family and relatives of staff members / Ex - Staff members who have independent income are also eligible.

Quantum of Loan

- Minimum loan amount is Rs. 1.00 lakh
- Maximum – Any amount - on need based as per the cost less stipulated margin subject to loan entitlement.
- In case of Repairs/Renovation - maximum is Rs. 10 Lakhs
- Housing loan of less than Rs. 1 lakhs can also be considered under Swarna Jayanti / Golden Hublee Scheme in rural / Semi - Urban places.

Loan entitlement

Salaried Person : Up to 60 month’s gross salary For Others : Up to 60 times of Monthly average income (Monthly average of past 24 months)

Margin

20% of the cost in general. The cost shall include Land cost, Stamp duty, Registration charges, Fixtures like Ward Robes, Pelmets, Dressing Mirror, Kitchen cabinets / racks, Geysers etc.

Repayment

Up to 20 years including repayment holiday of 6 to 18 months: generally in equated Monthly Installments (EMI). The maximum repayment period should not exceed 20 years or the borrower reaching 70 years of age whichever is earlier.
Flexible / Variable EMI’s may also be fixed

• In cases of availability of higher liquid collateral securities like FD’s, SV of LIC’s, NSC’s / KVP’s, EMI will be fixed by reducing total value of such securities from the total loan amount sanctioned.
• In case of considerable increase in salary/ income if any in future, the EMI may be re-calculated if the borrower so requests.

Security

The branches shall obtain the security of the site and building / flat constructed / to be constructed / to be purchased for which the finance is being extended, subject to satisfactory valuation and applicant’s clear marketable title / free from encumbrance the property.

Guarantor

The guarantee from spouse / major children to be insisted. If the property is in joint names, the co-owner should be taken as co-applicant. If the income of the spouse is reckoned for computation of loan amount and repayment, the spouse to join as co-applicant.

Incentives

As an incentive a personal loan (V Cash) equivalent to 12 months EMIs repayable in 36 months will be extended against the continuing security of House property already mortgaged to the Bank, in cases of track record of prompt repayment of 12 EMIs.

Pre-payment Charges

Penalty of 1% of the amount for pre-closure switchover to other bank within 5 years of availing the loan is levied on the balance outstanding.

Inspection Charges (p.a)

For upto Rs. 10 lakhs ---> Rs. 500/-
for above Rs.10 lakhs ---> Rs. 1000/-