PGB Loan against Immovable Property

 

 

Purpose

To cater the Business and Personal needs of the borrower

   

Eligibility

  • All Individuals & Joint Borrowers
  • Existing Business Enterprises
  • Staff members
  • Trusts, society, schools and educational institutes etc
  • ‘Other Income Tax Assessees.
   

Income Criteria

a) For Individuals & Joint Borrowers:

Minimum net monthly salary of Rs.20,000/- for last three years(salaried class) or minimum net annual income of Rs.3,50,000/- (for other income tax assessees).

However, Net salary/ Income should be double that of EMI.

b) For Business Enterprises:

Minimum Net annual income/ Net Profit of Rs. 350000/- and above.

Business enterprise should have cash profits during last three years and net profit in the immediately preceding year

However, Net Income should be 1.5 times that of EMI in case of Term Loan and of interest amount (on full sanctioned limit) in case of overdraft limit. Depreciation charged will be added back for the purpose of arriving at net income/profit.

   

Nature of Facility

Term Loan/Overdraft facility (for Personal and Business Needs)

   

Extent of Loan

For salaried class - Minimum of Rs.5 lacs and maximum up to Rs.50 lacs

For other than salaried persons - Minimum of Rs.10 lacs and maximum up to Rs.100 lacs

   

Assessment of Limit

I. Maximum 50 % of the realizable value of the property
OR
II (a).For Term Loan - Maximum 3 times of the Gross income/ Gross profit

II (b).For Overdraft - Maximum 4 times of the Gross income/ Gross profit
OR
III (a)For Individuals& Joint Borrowers: Net Income should be double that of EMI in case of Term Loanas well as Overdraft Limit (as the same is allowedon reducing DP basis),

III (b)For Business Enterprises: Net Income should be 1.5 times that of EMI in case of Term Loan and ofinterest amount (on full sanctioned limit) in case of overdraft limit,

WHICHEVER IS LOWER

Further, where Income of spouse/ earning children/ parent’s/ partners is taken into consideration for the purpose of EMI OR servicing of interest (for determining loan amount). it will be Gross Income/ Gross salary for the purpose of computation of assessment of limit.:

 

   

Repayment

  • Overdraft Limit – 12 months subject to annual review
  • Term Loan - Loan amount together with interest to be repaid in maximum 84Equal monthly instalments (EMI)

 

  • Repayment period, in case of salaried persons, may also be permitted after retirement upto 65 years of age of the borrower with the condition that his/her income after retirement (i.e. pension, interest income etc.) is also sufficient to repay the instalment.i,eNet income should be double that of EMI.
  • That higher EMI can be fixed upto the date of retirement and lower EMI can be fixed for the period after retirement”.

 

 

For more detail, please contact to our nearest branch.