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Home Loan

Central Bank of India offers manifold option for its home loan borrowing customers. The variants of home loan in central bank are:
 

  1. Cent Home Loan Scheme
  2. Cent Home Loan Plus
  3. Cent Home Loan for Government Employee
  4. Cent Home Double Plus Scheme
  5. Cent Combo Scheme
  6. Cent Direct Housing Finance – A Scheme for IDA members

Cent Home Loan Scheme

Features
 

  • Central bank offers home loan for construction of new home /flat or for purchase of existing home / flat which has residual life of 10 year over the loan period.
  • Cent Home loan is also offered for customers who want repairs/ alteration or renovation of their existing home/flat & purchase of plot.
  • Any resident Individuals or groups of individuals, of more than 18 years of age or any duly registered Cooperative Societies with a lawful & identified regular source of income are eligible for cent home loan scheme.
  • Individuals may apply for home loan as either single or jointly with family members such as Parents, children, spouse.
  • Non Resident Indians are also eligible for home loan scheme in central bank.
  • The loan is generally sanctioned for maximum repayment period of 30 years or on borrower attaining the age of 70, whichever is earlier.
  • The maximum tenure offered for Repair/Renovation loan is 10 years.
  • The loan amount depends on repayment capacity of the applicant & value of said property.
  • Maximum Moratorium Period is 36 months.

Margin
 

Loan Amount

Margin(Maximum percentage of loan)

  1. Up to INR 20.00 Lakhs

90% of purchase/ Construction cost

  1. Above INR 20.00 lakhs – up to INR 75. 00 lakhs

80% of purchase/ Construction cost

  1. Above INR 75.00 Lakhs

75% of purchase/ Construction cost

  1. For repairs / alteration / renovation of existing house/ purchase of plot.

75% of purchase/ Construction cost


Security/ collateral
 

  • Registered equitable mortgage of the property to be procured is required as collateral security for the home loan.
  • In cases where the mortgage of the financed property is not feasible due  any particular reason, bank may accept  other tangible securities which could be  mortgage of some other owned  property, pledge of bank's Fixed Deposit Receipts / Govt. Securities/  LIC policy/ KVPs/ NSCs/  IVPs, any other government  Bonds, etc. equivalent  to 125% of the sanctioned loan amount.
  • No personal or third party guarantee is required.

Cent Home Loan Plus

Features
 

  • A special home loan scheme for Existing Borrowers who have successfully repaid their Home Loan installments regularly for at least 3 years.
  • The loan is generally offered for renovation / Refurbishment /furnishing of house or buying household items such as furniture /LCD TV/ other consumer durables etc.
  • The acceptable security is further Extension of mortgage on the property for which home Loan was previously sanctioned.
  • Maximum loan amount available under this scheme is Rs.10.00 lakh.
  • The repayment is to be done is 10 years in form Equal Monthly Installments (EMI).

Cent Home Loan for Government Employee

Features
 

  • A home loan scheme designed especially for permanent Employees of Central or State Governments, or listed Public Sector Units under Central Government.
  • The loan is offered for
  • Purchase pr construction new house/flat or existing property not more than 30 years old.
  • Extension of the already acquired house/flat.
  • Repairs or renovation work of existing house/flat.
  • Purchase of plot subject to declaration from the borrower to start the construction of house on the purchased plot within the 2 years.
  • The maximum repayment tenure allowed is 30 years or the borrower attaining 70 years whichever is earlier.
  • Nil prepayment charges are applicable on floating rate home loans.
  • Loan Takeover from other Bank or financial institutes is also allowed under the scheme.
  • Nil prepayment charges is applicable on floating rate home loans.
  • For loan amount higher than Rs 75 lakhs , the interest rate is base rate + 0.25% which is 10.50% currently.

Maximum Loan amount & margins

The maximum loan amount is subject to monthly Net Take Home salary of the applicant.


Construction/ Purchase of New or existing property
 

  • Amount up to Rs. 20 lakhs – The Maximum permissible amount is 90% of the construction cost / purchase cost or extension cost of new / existing Property including cost of land. The margin is kept at Minimum 10% for purchase/ construction of new/existing property.
  • Amount above Rs.20.00 lakh and up to Rs.75.00 lakh- The Maximum permissible amount is 80% of the construction cost / purchase cost or extension cost of new / existing Property including cost of land. The margin is kept at Minimum 20% for purchase/ construction of new/existing property.
  • Loan amount above Rs. 75 lakhs -The Maximum permissible amount is 75% of the construction cost / purchase cost or extension cost of new / existing Property including cost of land. The margin is kept at Minimum 25% for purchase/ construction of new/existing property.
     
  • For repairs/renovations/alterations of existing house/flat
     
  • Maximum loan amount could be 75% of the estimated cost or Rs 10 lakh whichever is higher. The margin is kept at Minimum 25% in case repairs / alteration / renovation of existing house.
     
  • For Purchase of plot
     
  • Maximum loan amount could be 75% of the registered value of the plot. The margin is kept at Minimum 25%
     
  • Security/ collateral
     
  • Registered equitable mortgage of the property to be procured is required as collateral security for the home loan.
  • In cases where the mortgage of the financed property is not feasible due  any particular reason, bank may accept  other tangible securities which could be  mortgage of some other owned  property, pledge of bank's Fixed Deposit Receipts / Govt. Securities/  LIC policy/ KVPs/ NSCs/  IVPs, any other government  Bonds, etc. equivalent  to 125% of the sanctioned loan amount.
  • No personal or third party guarantee is required.

CENT Home Double Plus Scheme

This home loan scheme is offered in two variants:
 

  1. Home loan with Overdraft Facility
  2. Term Loan for repair/ Renovation of existing property.
  3. Home loan with Overdraft Facility
  • The overdraft facility is offered for construction / purchase of new or existing property. Also the Extension of existing house is included.
  • This allows borrower to minimizing interest Burden as the cash is withdrawn as and when required at the various stages of construction.
  • The loan is available to Individual salaried staff, self-employed individuals, professional, any other individual having a regular source of income.
  • The applicant/s must be 18 years old (completed) as on the date of application.
  • The Moratorium period offered is  up to 36 months.
  • Repayment period of the loan can go  up to 30 years

Loan amount
 

  • Amount up to Rs. 20 lakhs – The Maximum limit offered is 90% of the construction cost / purchase cost or extension cost of new / existing Property including cost of land.
  • Amount above Rs.20.00 lakh and up to Rs.75.00 lakh- The Maximum limit offered is 80% of the construction cost / purchase cost or extension cost of new / existing Property including cost of land.
  • Amount above Rs. 75 lakhs -The Maximum limit offered is 75% of the construction cost / purchase cost or extension cost of new / existing Property including cost of land.
  • For repairs/renovations/alterations of existing house/flat, the Maximum limit offered is 75% of the estimated cost or Rs 10 lakh whichever is higher including the other costs.
  • For Purchase of plot, the highest limit offered 75% of the registered value of the plot.
  • The net take home salary / income should be 35%, 30% and 25 % for individuals with annual income as up to 5 lakhs, between Rs. 5 lakhs to 10 lakhs and beyond Rs. 10 lakhs respectively.

Security/ collateral
 

  • Registered equitable mortgage of the property to be procured is required as collateral security for the home loan.
  • In cases where the mortgage of the financed property is not feasible due  any particular reason, bank may accept  other tangible securities which could be  mortgage of some other owned  property, pledge of bank's Fixed Deposit Receipts / Govt. Securities/  LIC policy/ KVPs/ NSCs/  IVPs, any other government  Bonds, etc. equivalent  to 125% of the sanctioned loan amount.
  • Waiver on Condition of Guarantee for salaried individuals maintaining a salary account with Central Bank irrespective of loan amount.
  • For self-employed persons/professionals no guarantee is required for loan amount up to Rs.20.00 lakh.
  • Spouse, parents / siblings to be co-applicant in loans above Rs.20.00 lakh to professional / self employed persons.

Cent Home double plus Term Loan

  • Cent Home double plus Term Loan is for such borrowers who are availing Cent Home Double Plus and now surplus loan for renovation & repair post 3 years of last disbursement of Cent Home Double Plus loan and on regular repayment.
  • Borrowers who are planning for Extension of existing property are eligible after 1 year from last disbursement of Double Plus scheme & on regular repayment.

Cent Combo Scheme

  • A special combo scheme with attractive discounts on interest rate, if both Home loans and vehicle loan taken together.
  • Minimum Rs. 4 lakh. as the average yearly income of the borrower of last 2  years as per I.T. Return
  • The Minimum Home Loan should be of Rs. 20 lakh to avail this scheme.
  • For loans up to Rs. 20 lakh as home loans and 20 lakh as vehicle loans (i.e. combined loan amount max Rs.40 lakh), the Margin is 10%.
  • For loans above INR 20 lakh as home loans and 20 lakh as  vehicle loans (i.e. combined loan amount is more than 40 lakhs), the Margin is 20%
  • The net take home salary / income should not be less than 30%, 25% and 20 % for individuals with annual income as up to 5 lakhs, between Rs. 5 lakhs to 10 lakhs and beyond Rs. 10 lakhs respectively

Cent Direct Housing Finance – A Scheme for IDA members

  • A special housing scheme for members of IDA (Indian Dental Association).
  • Any salaried or self-employed Dentist having a permissible and regular income is eligible for this scheme,
  • Co-applicant as parents/ children / spouse or sibling acceptable to the Bank is required under this scheme.
  • The loan is granted for any of the below mentioned purposes.

Loan amount
 

  • No maximum limit is fixed for Purchase or construction new house/flat and extension of existing property. However the quantum of loan is subject to following :
  • For loans up to 25 lakhs , the maximum amount 90% of the actual cost of construction or  purchase of new / existing property or estimated cost of extension of existing house/flat aging up to 10 years old
  • For loan amount more than Rs. 25 lakhs , the maximum loan amount can go up to 75% of the actual cost of construction or  purchase of new / existing property or estimated cost of extension of existing house/flat aging up to 10 years old
  • For repair and renovation, a maximum amount of 10 lakhs or 75% of the estimated cost of work is offered.
  • For purchase of plot either a maximum of Rs 25 lakhs or 75% of the plot purchase cost. No loan shall be offered only on purchase of Plot. The net total Cost of the plot including stamp duty charges should be less than 50% of the net cost of housing unit.
  • The actual cost includes cost of plot, applicable stamp duty and registration charges as per law of the state. Also the premium towards life insurance of borrower for full loan tenure on single premium basis is included while computing the loan eligibility amount.
  • The net take home income should be 35%, 30% and 25 % for individuals with annual income as up to 5 lakhs, between Rs. 5 lakhs to 10 lakhs and beyond Rs. 10 lakhs respectively.
  • All loan amounts are subject to complying with Net Take Home Income for which the norm is mentioned above.
  • Gross annual income will include only frequent income from all regular sources.  bonus income or income of any temporary nature like overtime perks , etc. will be excluded while computing  Gross Annual Income.
  • The Maximum period for repayment of loan is 25 years or retirement age from service or on borrower attaining age of seventy years, whichever is earlier. 
  • Repayment tenure for extension of house / flat or repairs/ renovation of existing property is maximum period of 10 years. 
  • For new construction, the repayment will commence after 18 months post loan disbursal or 6 months, post completion of construction whichever is earlier. 
  • In other cases than above, the repayment will commence succeeding month of disbursement.
  • Acceptable security is the registered equitable mortgage of the property to be procured is required as collateral security for the home loan.
  • In cases where the mortgage of the financed property is not feasible due  any particular reason, bank may accept  other tangible securities which could be  mortgage of some other owned  property, pledge of bank's Fixed Deposit Receipts / Govt. Securities/  LIC policy/ KVPs/ NSCs/  IVPs, any other government  Bonds, etc. equivalent  to 125% of the sanctioned loan amount.
  • In case of purchase of property from Housing Board or Society/Builder where mortgage creation is not feasible, an urgent tripartite Agreement needs to be placed between the seller, buyer and the Bank.  Prior to executing Such Tripartite Agreement shall be sent to be legal vetting by Legal Department of Regional/ Zonal Office which might affect on time taken for loan sanctioning.
  • No third party Guarantee is taken under this scheme.
  • However central Bank reserves the right to seek guarantee/ cash collateral if there is any kind of divergence in the Net Take Home income or in the eligibility norms of the bank.
  • Zero prepayment penalty is applicable in case the loan is pre closed by the borrower own source of funds.
  • In case of takeover to other lender Banks/Financial Institutes, then a Prepayment Penalty is applicable @ 1.00 % on loan outstanding balance as on the date of closure. Documents
  • Purchase or construction new house/flat or existing property not more than 30 years old.
  • Extension of the already acquired house/flat.
  • Repairs or renovation work of existing house/flat.
  • Purchase of plot subject to declaration from the borrower to start the construction of house on the purchased plot within the 2 years.

Rate of Interest

Central Bank has revised their rate of interest w.e.f. 01.09.2016. The interest rate for tenure of 1 year is 9.35%. The rate of interest depends on the amount of loan sanctioned by the bank.
 

  • Rate of Interest for Cent Home Loan

Floating home loan is provided at the bank’s current MCLR.
 

  • Rate of Interest for Cent Home Loan Plus

The rate of interest will be 1% more than the rate of existing housing loan in case of refurbishment, buying of furniture, television, home theater etc. which means MCLR + 1%.
 

  • Rate of Interest for Government Employees

For a loan up to Rs.75 lakh, the rate of interest is MCLR + 0 (Floating).


For loan above Rs. 75 lakhs, the rate of interest is MCLR + 0.25 (Floating)
 

  • Rate of Interest for Cent Home Double Plus Scheme
     

Sl. no

Purpose

Min. Loan amount

Max. Loan amount

Margin

Rate of interest

Repayment Tenure

1

Extension of existing home/flat or Repairs/Renovation of property

Rs. 1 lakh

Rs. 10 Lakh

25%

MCLR + 0.25% on floating & monthly rest

60 EMI

2

Purchase of new 2 wheeler/4 wheeler for personal use.

Rs. 1 lakh

Rs. 10 Lakh

25%

MCLR + 0.25%  on floating & monthly rest

60 EMI

3

Furnishing/ Refurbishing of house

Rs. 1 lakh

Rs. 10 Lakh

25%

MCLR + 0.50%  floating 

60 EMI

4

Purchase of consumer durables

Rs. 1 lakh

Rs. 10 Lakh

25%

MCLR + 0.50%

60 EMI

5

Solar Energy equipment

Rs. 0.10 lakh

Rs. 10 Lakh

25%

MCLR & monthly rests.

36 EMI

6

Children marriage / education expenses, medical expenses

Rs. 1 lakh

Rs 5 lakhs

25%

MCLR + 1.50 % on floating & monthly rests.

36 EMI

7

Family holiday , tour, travels

Rs. 1 lakh

Rs 5 lakhs

25%

MCLR + 2% on floating & monthly rest.

24 EMI

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

 

Rate of Interest for Cent Combo Scheme
 

The rate of interest for home loan comes at a concession of 0.25% on all slabs which are subject to minimum MCLR. Whereas, the rate of interest for a vehicle loan comes at a concession of 0.50% on all slabs which are subject to minimum MCLR.


Rate of Interest for Cent Direct Housing Finance

The current rate of interest is offered at a Base Rate of 9.70% w.e.f. 08-10-2015
 

Tenure

Loan up to Rs.30 lakh

Above Rs.30 lakh less than Rs.75 lakh

 

Floating

Floating

Up to 5 years

Base Rate = 9.70%

BR+ 0.75%

Over 5 yrs and < 10 yrs

BR+ 0.25%

BR+ 1.00%

10 years and above

BR+ 0.50%

BR+1.25%

Documentation

List of papers / documents applicable to all applicants;
 

  • Personal Documents
  • Completed loan application
  • 2 passport size photographs
  • Proof of identification: Electoral ID Card / Passport / Driving License / PAN card.
  • Proof of residence: Electoral ID Card / Passport / Electricity Bill / Telephone Bill.
  • Proof business address, in case of non- salaried borrowers
  • Statement of bank account for the last six months
  • Signature identification from present banker.
  • Personal Assets and Liabilities Statements in Bank’s standard format.
  • Brief write up of securities charged in respect of other loans availed from our Bank/other. Banks/Housing & Auto Finance Companies /other sources.
  • Sale Deed, Agreement of Sale. Original Share Certificate(s) issued by the society.
  • Land and Building tax paid receipts, possession certificate, and loc property certified by revenue authorities. In case of loan granted for purchase of plot of land, declaration by the borrower agreeing to construct the house within the stipulated period. Valuation report from empanelled valuers as per standard format.

Additional documents for IDA member Housing loan scheme;
 

  • For self-employed Dentist who wants to apply for a Loan amount up to Rs.5.00 lakhs any Satisfactory proof of monthly/annual income is required. For Loan amount above Rs.5.00 lakh, the applicant has to furnish ITR for previous two years as proof of income.
  • Original IDA membership certificate and one photocopy of the certificate should be submitted while applying for loan. The Original certificate will be returned post verification.
  • Minimum 5 PDC for amount equal to proposed EMI and duly signed by the applicant with cover letter for deposit of the advance cheques.

Processing Fee

  • Processing fee for Cent Home Loan is @ 0.50% of the Loan Amount or maximum Rs.20,000/-.
  • Processing fee for Cent Home Loan Plus is Rs. 500/- for each loan application.
  • Processing fee for Government Employees is either 0.50% of the loan amount or Rs.20, 000/- whichever is higher.
  • Processing fee for Cent Home Double Plus Scheme is @ 0.50% of the Loan Amount subject to maximum Rs.20,000/-.
  • Processing fee for Cent Combo Scheme is @ 0.25% of the entire loan amount, maximum Rs. 20,000 + tax.
  • Processing fee for Cent Direct Housing Finance for IDA Members is @ 0.50 %, maximum Rs.10,000/-.

Interest Subsidy for Housing the Urban Poor (ISHUP) Scheme
 

Based on directive of the Ministry of Housing and Urban Poverty Alleviation, the Government of India has drafted an Interest Subsidy Scheme on home loans to gratify the need of affordable housing of Economically Weaker Section (EWS) and Low Income Group (LIG) category of the Indian economy. This scheme intends for the idea of Affordable Housing for all for those who owns a plot in residential or any other notified area in any urban area, however don’t have any pucca house to live in. All such plot holders are covered under this scheme either in their name or of any family member. Central Bank, being one of the foremost banks in spreading its banking services to every class of society, is also an implementing partner under this scheme. Other Notable features of this scheme are:
 

  • The scheme is offered to people from Economically Weaker Section of society with monthly household income upto Rs. 3300/- and to Low income Group having a household income above Rs. 3301/- and up to Rs. 7300/-
  • Subsidized loan for a term of 15 to 20 years is given to EWS segment and a maximum loan amount up to Rs 1.00 Lakh per person can be availed.
  • For the LIG segment financial assistance will be given for a maximum loan amount upto Rs. 1 Lakh only and thereafter if required shall be unsubsidized. The maximum loan amount up to 1.60 Lakh can be offered to LIG group under this scheme.
  • A Moratorium Period of 12 months post disbursement of first installment or 2 months post completion of the of construction of house is offered under this loan scheme.
  • No Prepayment charges and processing fee is charged.
  • The primary security for loan amount up to 1 lakhs is done in the form of mortgage of house. However No Collateral security or Third party guarantee for loan up to of Rs 1.00 lakh is required apart from the group guarantee.
  • For Loan amounts more than 1 lakh, the Mortgage of constructed property for the loan tenure is required. The dwelling units will be mortgaged to Central Bank and with no ownership rights to the property owner to sell off the property.
  • The Repayment commences after 12 months post disbursement of the loan or 2 months after the completion of constructions of the house.
  • The repayment shall be done in the form of installments which shall be decided by the bank on the basis of expected cash flow from the income activities of the applicant. It’s the impetus of central bank to ensure that the installment fixed on home loan under this scheme are not only borrower friendly but also realistic.
  • The eligible applicants can directly approach the nearest central bank branch or the state housing board to avail loans under this scheme.
  • Minimal documentation is required for the loan and complete assistance by Central Bank service desk is provided from application till the disbursal of loans.

Other terms & conditions
 

  • Moratorium Period – 12 months
  • Repayment-After 12 months from the first disbursement or two months after completion of constructions.
  • Installment- Borrower friendly and to be decided on realistic expected cash flow from the activities of the borrower.
  • Charges - No prepayment / service charges.

Central Bank EMI Calculator

The organization provides the facility of EMI calculators. With the help of this calculator, an individual can find out the Equated Monthly Installments as per his eligibility. The applicant can access Paisabazaar.com site at any time and use the calculator and calculate his EMI depending upon the amount of loan he/she wishes to apply for. All he needs to do select the amount that he/she wishes to borrow, and the anticipated Central Bank Home loans interest rate. After having selected the desired amount, the user now needs to select the tenure for which he needs the loan, i.e. the repayment period as per his/her convenience. EMI and repayment period share an indirect relationship with each other, i.e. the longer the tenure, the lower is the EMI and vice-versa. Using the slider, the user can exercise various options and play with different repayment period till he/she reaches an EMI amount suitable to him.

How to Apply For a Central Bank Home Loan Online

The bank offers Home Loan application through the Paisabazar.com website. Any customer wanting to avail of any of the Home Loans offered by Andhra Bank can visit the mentioned website, fill up the required details and apply for the loan.