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  • October 24,2020
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earnest money

 
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  • Eligibility
    Purpose To finance Earnest Money Deposit for applicants desirous of purchasing flats / plots under scheme by State Housing Boards / Urban Development Authority (SHB/UDA).
    Eligibility Any person or group of persons, singly or jointly having capacity at least to repay the Earnest Money Loan.
  • Finance
    Loan Amount 100% of Earnest Money Deposit subject to maximum of ₹ 10.00 Lacs
  • Security and Margin
    Margin NIL
    Security
    • Lien on Earnest Money Deposit with SHB/UDA.
    • The lien of our Bank shall be got noted with the authority. After the draw, Earnest Money Refund order of unsuccessful applicants shall be sent by the authority directly to the Bank instead of the applicant.
    • Upfront Interest amount equivalent to period of draw (as declared at the time of launch of scheme by the development authorities, normally 180 days) be deposited by the borrower with the bank prior to release of loan and shall be kept under bank lien.
    Safeguards:
    • A rubber stamp shall be affixed on face of the application form showing that application money has been financed by them.
    • Get the Earnest Money Finance column ticked in the form and fill in the detail of bank in the next column.
  • Rate of Interest and Repayment
    Rate of Interest
    • 6 Month MCLR
      Upfront interest (fixed for scheme period) to be recovered for the period of scheme.
    Upfront Fee / Other charges NIL
    Repayment
    • In case of non-allotment: Earnest Money Loan shall be adjusted out of the proceeds of refund from SHB / UDA along-with interest and other charges.
    • In case of allotment: If borrower requests for servicing balance installments payable for purchase of plot/ flat, it may be considered subject to repaying capacity and eligibility criteria as per Housing loan policy.
    • In case of non-liquidation of Earnest Money loan due to delay in draw by authority: Matter to be suitably taken up with relevant / appropriate SHB/UDAs as the case may be.
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