BGVB Housing Loan

Loan under the scheme may be allowed for any of the following purposes:

• Outright purchase of newly built ready house/flat where mortgage in favour of the Bank can be created immediately
• Construction of House on own land & For purchase of under construction of flat
• Renovation/extension/repair of house or flat where it is owner-occupied
• A customer, who has already availed of Housing Loan from our Bank, is eligible for additional finance for carrying out alterations / additions / repairs to the house / flat financed by the Bank, within the overall ceiling as specified later
• An individual who might have raised fund for construction / acquisition of accommodation from other sources e.g. employer or other financial institutions and need supplementary finance to complete the project
• Individual who wants to repair / extend house / flat owned by him but tenant-occupied
• Individual who is already owning a house in the town/village where he resides will also be eligible for Bank finance for buying / constructing a 2nd House / Flat in the same town/village or in some other town/village for the purpose of self-occupation
• Individual seeking Bank finance for purchase of house / flat for the purpose to let out that house on rental basis in case of his being posted outside the Headquarters of his employment or provided with the accommodation by his employer
• Individual who cannot afford to acquire a new dwelling unit the cost of which is beyond his reach proposes to buy an old house where he is presently residing as a tenant, such house/flat should not be old over 35 yrs. from the date of completion of the construction
• Furnishing of self-occupied house/flat
• Housing Loan may be allowed for taking over existing Housing loan in the name of the applicant/s from other Banks or Institutions provided there has been no default in the loan account. This will be permissible in case of individual or cases where, wife is co-borrower. Loan will, however, not be available for repayment of Housing Loans taken from any of other sources
• Purchase of land for construction of house on compliance of formalities of such purchase as per law. A declaration is to be obtained from the borrower that he intends to construct a house on the said plot, with the help of bank finance or otherwise, within a period of 2(two) years by availing of finance from the Bank

Individual aged 21 years or above having regular income (Salaried persons having in regular & permanent service, Professionals, Self-employed), who is not a defaulter borrower of a Bank / Financial Institutions and is our account-holder (SB, Current, CC or OD A/c), is eligible for loan under the scheme. Loan is preferably given in joint names of two or more individuals, i.e. Co- owner(s) of property (must) / spouse/parents/son or daughter brother or sister. Professionals & Self- employed (P& SE) should have at least 3 years IT returns and not filed for past 3 years at one instance. Housing Loan can be availed by an account-holder (SB, Current, CC or OD A/c) and the proposed property is to be situated in West Bengal. The pre/post-sanction inspection shall be carried out by the financing branch, however, Regional Manager of financing Region in consultation with the Head Office and Regional Manager where the property is situated, may request the concerned Regional Manager where the property is situated to entrust any branch under his/her region nearer to the proposed property to inspect/verify the property before sanction and at regular intervals during the currency of loan. A note and Office Order in respect where the property inspection at regular interval is entrusted to any branch nearer to the proposed property shall be kept in the loan file of the financing branch. The financing branch based on the inspection report submitted by the inspecting official shall extend the loan to his/her satisfaction. All Staff members willing to take Housing Loan at customer rate are also eligible to avail the Housing Loan for construction / purchase of House / Flat anywhere in India. In that case, inspection cost should be borne by the concern staff.

The quantum of loan shall be determined by the bank considering the cost of the house/flat and the applicant's age, income, assets and liabilities and repayment capacity etc. The maximum quantum of loan shall be as under:

While fixing up the quantum of loan in case of salaried persons it is to be considered that the amount of monthly installments inclusive of interest plus other deductions towards other liabilities must not exceed 60% of the borrowers' gross monthly income. If the wife is co-borrower, the gross monthly income of both the borrowers shall be considered for determining loan of higher amount on the basis of merit of the case. Such cases shall be referred to the concerned General Manager In-charge of Credit at HO for decision.

Any 2nd hand purchase of house/flat shall be considered as old house/flat. Project cost includes purchase price/ construction or extension or repair cost plus stamp duty and registration cost.

Max. Period of 20 years and tenure is fixed on the basis of age of 1st applicant (whose income contributes major part in recovery) and remaining age of old property.

For salaries person, the loan shall be repaid within superannuation and for professional & self employed person, within the age of 65 years.

Flexible Repayment Option: Step-up EMI, Step-down EMI & Lower EMI with lump sum payment at a certain point of time.

• Primary
  • Mortgage of the property to be acquired and hypothecation of movable assets financed by the Bank for furnishing the house/flat.
• Additional
  • In case of salaried persons, no additional security is required if repayment is ensured through deduction of monthly installments from the applicant’s salary.
  • In case the salaried person is unable to provide the requisite undertakings from the employer, and in case of professional or self-employed or person engaged in industry, trade or business, additional security in the form of Bank’s own Term Deposit, LIC Policy (by surrender value), NSC, KVP, Relief Bond etc acceptable to the Bank after proper verification to the extent of 10% to 20% of the loan or Personal Guarantee of one or two persons having worth of 125% of the loan amount and acceptable to the bank shall be required.

The Bank shall charge interest on BGVB Housing Loan Account on the basis of extant circular of the Bank on this score at Floating Rate basis at the option of the Loanee at the rate indicated below on outstanding debit balance calculated on daily product basis and debited to the account every month.

At Present : MCLRH i.e. 8.25 %

• A reduction of 0.25% p.a in the interest shall be allowed if 50% of the loan is additionally secured by way of Bank's own Term Deposit or
• A reduction of 0.25% p.a in the interest shall be allowed if the loan is covered under Housing Loan Protector Scheme with Bajaj Allianz Life Insurance Company.
• No concession is available for loans upto 5 years except in case of loans given to the staff members.
• In case of loan to the members of the staff of the Bank an additional concession of 0.25% in the interest rate is allowed across the board both in case of fixed and floating options.

• 0.50% of the loan amount minimum. Minimum: Rs.1000/- and Maximum: Rs.10, 000/-.
• Mortgage Charges: Nil..
• Documentation Charges:
• Prepayment Charges:
• In case of takeover of loans by Banks /HFCs, 2% pre-payment charges is levied on outstanding balance.
• Interest Subvention: 1% of interest amount subject to fulfillment of terms and conditions in this regard.

Please contact your nearest BGVB branch for further information.

Terms & conditions apply.