PSB Mortgage

PSB Mortgage

Purpose

This is an all-purpose credit facility Personal as well as Business i.e. to meet legitimate need based expenses viz- marriage /medical / educational expenses / repairs / renovation / extension to the residence / commercial property/ purchase of consumer durables or any unforeseen expenses.

The purpose of credit facility will have to be specified along with an undertaking that credit facility will not be used for any speculative purpose whatsoever including speculation on real estate and equity shares.

Eligibility

Exit Age :

Individuals who are income tax assesses.
Minimum gross monthly salary/income Rs.30,000.00
Entry Age : minimum 18 years
Service class non pension – 60 years
Service class with pension – 65 years
Others – 65 years.
Credit facility against agricultural property is strictly not permitted. Credit facility shall not be permitted against security of immovable property wherein Educational/ Religious Institutions/Hospitals are located.
Salaried Class, people engaged in trade, commerce and business, professionals, self-employed, individuals with high net worth, Partnership firms, Proprietary firms, Companies (Pvt./Public Ltd.), HUFs, Trusts, Societies, Limited Liability Partnership, NRIs## (subject to compliance of guidelines of Bank & RBI) are eligible under the scheme
In case of Firms / Companies & Trusts, credit facility may be considered against the property owned by Partner/Director/Trustee.

Type of facility

Depending upon the need of the borrower, mode of credit facility may be by way of Term Loan& only Dropdown Overdraft.

Credit facility shall be classified according to activity i.e. Priority Sector / Non Priority Sector.

Quantum of Finance

A. Minimum:

For MSME- Above Rs. 10 lakh
General Purpose- Rs. 5 lakh

B Maxium:- Rs.10.00 Crore

For salaried persons: Maximum 10 times of average net annual income based on salary slip (last 12 months)/ latest Form No.16 or ITR. (subject to repaying capacity**)

For others: Maximum 10 times of average net annual income based on ITR for last 3 Financial Years. (subject to repaying capacity**) (average income net of non-cash expenditure)

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Note:

The income of the spouse / major sons may be added if he/she is a co-borrower.
In case of Firms/ Companies/ Trusts/ HUF, the Partners/ Directors/ Trustees/ Co-parceners with regular & independent income may join as co-borrower to supplement repayment capacity.
Cash accruals/ Depreciation may also be added to income, in case of borrowers other than salaried class.

Margin

For Fresh Cases, margin on security shall be as under

LIC Policy

NSC

Nature of Security	Immovable Property	Bank’s Own Deposit
Margin	35% of Realizable value of property	10% of Balance Outstanding	25% of Surrender Value	25% of Face Value

Credit facilities under this scheme may also be considered on residual value of the property already mortgaged to the Bank for any other credit limits subject to the maintenance of margin, prescribed for respective credit facilities.
Security in the form of NSCs/Bank’s Own Deposit/LIC Policies may be taken to supplement the overall security requirement.

Rate of Interest

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Repayment

For Term Loan: Maximum 15 years based on repaying capacity of the borrower subject to criteria for net take home salary/income after all deductions.
Further, Rate of interest shall be 50bps higher than the applicable ROI where the tenor is above 10 years.

Repayment to be scheduled in a manner so that the loan is adjusted by the age of 70 years of the borrower. In case any younger Co-borrower is proposed having 50% or more contribution towards IIR (Installment to income ratio), the eligibility criterion w.r.t. age of the younger Co-borrower may be considered.

EMIs depending on cash flows would be of monthly/quarterly frequency. Term loan is subject to annual review.

For Dropdown Overdraft:

Maximum tenor of 10 years subject to annual review.
The drawing power will be reduced on monthly/quarterly/half yearly/yearly basis with fixed amount so as the total loan is liquidated at the end of the loan tenure and minimum 10% annual reduction to liquidate the loan amount at the end of loan tenure.
No over-drawings/ adhoc /TOD is permitted in this scheme.
Interest shall be serviced as and when applied.

Guarantee

Not Applicable

Takeover Charges