Wed, 20th September 2017
Home FAQ'sConsumer Lending Info

Consumer Lending Info

Frequently Asked Questions >> Consumer Lending

1.    For what purposes does the Bank provide Home Loan?
- Land and/or Building purchase - Construction, extension or renovation of house - Ready-built House/Apartment purchase - For the purpose of furnishing, purchase of home appliances etc.

2.    How shall I apply for the loan?
All you need to do is approach the Bank and submit the application form along with the necessary documents or you can simply download the application form from the Bank\'s website, fill it in and submit to the Bank. Loan can be applied in single or joint names.

3.    How is my Home Loan eligibility determined?
Your Home Loan eligibility is basically determined considering the following factors: - Age of the borrower - Purpose of the loan facility - Collateral - Repayment capability

4.    How long does it take to get my application processed and the loan sanctioned?
We are committed for the prompt processing of your application if all the essential documents are in place. Loans are disbursed upon completion/execution of all security documentation

5.    What is the maximum amount that I can borrow?
The maximum amount that you can borrow depends upon: - purpose of the loan - value of the project - repayment capability

6.    What security/collateral do I have to provide?
Freehold landed property as assessed by the Bank

7.    Does the property have to be insured?
Yes, the property (building) should be insured.

8.    What is EMI?
EMI or Equated Monthly Installments refers to the fixed sum of money that you will be paying to the bank every month on a specified date. The EMI comprises of interest and principal components which is derived upon determining loan amount, loan tenure and interest rate.

9.    What are the repayment period options?
Repayment period options range generally from a minimum of 1 year (excluding moratorium period) and a maximum of 20 years (including moratorium period).

10.    What is Moratorium Period?
Moratorium Period is nothing but loan repayment holiday. If you want to get the loan disbursement and not yet ready with the provision of Equated Monthly Installments (EMIs), you are provided with an option of paying interest only on the utilized loan amount for certain period instead of paying an EMI. The moratorium period is included within the maximum repayment period

11.    What is Mortgage Loan?
Mortgage Loan is a consumer loan that is advanced to meet short term financial obligation of an individual. It is provided against the security of landed property.

12.    How is my Mortgage Loan eligibility determined?
Mortgage Loan eligibility is basically determined considering the following factors: - Age of the borrower - Purpose of the loan facility - Collateral - Repayment capability

13.    How would the value of my property be determined?
The value of your property would be determined by way of valuation conducted by the authorized valuator of the Bank.

14.    Can I settle my loan before maturity?
Yes, you can settle your loan before the maturity upon paying applicable pre/partial payment fees.

15.    What is the difference between Mortgage Loan and Mortgage Overdraft Loan?
Mortgage Loan is an Equated Installment loan wherein you need to pay monthly installments and the installment constitutes principal as well as the interest. Conversely, in case of Mortgage Overdraft, you may need to pay interest only on the utilized loan amount. Annual renewal of the facility is mandatory in case of Mortgage Overdraft.

16.    What type of Auto Loans can I avail from the Bank?
Auto Loan facility is provided by the Bank to finance the purchase of new or used private or commercial/utility vehicles.

17.    How do I apply the loan?
All you need to do is approach the Bank and submit the application form along with the necessary documents or you can simply download the application form from the Bank\'s website, fill it in and submit to the Bank. Loan can be applied in single or joint names.

18.    How is my Auto Loan eligibility determined?
Your Auto Loan eligibility is basically determined considering the following factors: - Age of the borrower - Type of vehicle to be financed - Repayment capability - Experience in operating vehicle (in case of Commercial/Utility vehicles)

19.    How much can I borrow?
The maximum amount you can borrow depends upon the value of vehicle that you are planning to purchase.

20.    Is there any down payment required to get an Auto Loan?
Yes, you are supposed to inject certain amount as equity prior getting the Bank financing.

21.    Does the vehicle need to be insured?
Yes, the vehicle requires comprehensive insurance coverage including third party liability endorsed in the name of the Bank.

22.    Do I need to pledge anything or give additional collateral to get an Auto Loan?
No, there\'s no need of additional collateral except registration of vehicle in the Bank\' favor.

23.    What is Personal Loan?
Personal Loans is a multipurpose short term loan with prefixed installments and payment schedule. The facility can be utilized for debt consolidation, home improvement, purchase of consumer durables, educational expenses, purchase of professional equipment, social events or any other personal need.

24.    How is my Personal Loan eligibility determined?
Your Personal Loan eligibility is basically determined considering the following factors: - Age - Purpose of the loan facility - Repayment capability

25.    How much loan can I get?
Minimum of Rs. 500,000/- (Five hundred thousand) and maximum of Rs. 30,000,000/- (Thirty million).

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