BGVB Housing Loan

Considerable time have elapsed since the last review undertaken and keeping in view of recent developments in lending policy guidelines and in the line of home loan scheme of the sponsor bank, it has been felt expedient to revisit the existing scheme to make it more viable & marketable in terms of extending the Repayment period; enhancement of Quantum of loans; keeping of uniform interest rates; etc. Accordingly, certain addition, deletion and modification have been considered prudent to be incorporated.


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
Processing Charges: