Housing Loan

 

Loans may be offered to associates of the Fund at the rate of interest of 8% per annum for:

  • Purchase of a plot of land
  • Construction Purposes
  • Completion/Extension

 

Kindly note that the Fund is insured against eventual loss mainly by:-

  1. A first rank mortgage inscription on the property of the associate.
  2. A life Insurance cover assigned in its favour.
  3. Monthly salary check-off.

 

Maximum amount of loan granted is Rs1 million.

Period of loan varies from 5,10,15 or 20 years.

The loan shall be secured by a first rank mortgage.

A life Insurance Mortgage Protection Policy (single premium) should be submitted.

 

APPLICATION PROCEDURES FOR HOUSING LOAN

CHECK LIST /DOCUMENTS TO BE SUBMITTED

  1. Title deed
  2. Plans
  3. Site Plan
  4. Location Plan
  5. Building Permit
  6. Development Permit
  7. Last Salary Slips – Husband/Wife
  8. Further certification if salary of spouse is from not-well established organisation to determine quantum of grantable loan.
  9. Civil status documents – Birth certificates, Marriage certificate.
  10. Details of completion works for assessment
  11. Certificate of Pari Passu authorisation where appropriate.
  12. Attestation that employee is not under report.
  13. Independent assessment by Engineer of work to be executed.
  14. Limitation of loan exercise: –
    • 70% of valuation of property and
    • should not exceed ¼ of joint salaries.

All these details to be satisfied before an application is submitted for Board’s approval.
Work undertaken by Senior staff under responsibility of Manager.

 

PROCEDURES AFTER BOARD’S APPROVAL

  1. Immediate release of letter of approval
  2. Request for a Life Insurance Policy – Registration of an Assignment deed in favour of the Fund.
  3. File sent to Notary for preparation of Notarial deed. Thereafter requires independent vetting by Legal adviser of the Fund.
  4. 1st Instalment prepared when Notarial deed is ready – Payment effected by Notary personally.
  5. Remaining Instalments as and when engineer’s reports are obtained.
  6. Last Instalment is released when work has progressed substantially or is near completion (again relying on engineer’s report).
  7. To produce a Fire/Cyclone Insurance on building upon release of last instalment.
  8. Forward Salary Declaration Authority to initiate mechanism for monthly repayments.

 

Kindly note that the Fund is insured against eventual loss mainly by:-

  1. A first rank mortgage inscription on the property of the associate.
  2. A life Insurance cover assigned in its favour.
  3. Monthly salary check-off.

 

Skip to content