Maximum eligible quantum of loan shall be 4 times of average gross annual Income of all the four years as per recorded proof.

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1 FAQs on Housing Loan to Agriculturists Who are eligible for this Housing Loan? Agriculturists, Dairy and Allied activity Farmers, Planters & Horticulturists are eligible. Agriculturists owning and cultivating agricultural lands of more than 5 acres Irrigated lands / 10 acres of Dry lands in their name/s. In case of Agriculturists engaged in Dairy farming, Poultry farming, Plantation Crops and Horticultural produce, the minimum land holding criteria does not apply. Instead such category of borrowers should have minimum gross annual income of Rs.5.00 Lakhs Existing customer of our Bank with satisfactory dealings with us for the last two years.(this condition can be relaxed in select cases) The age of the borrower or at least one of the joint borrowers should not be more than 55 years at the time of availing the loan. What are the purposes for which loan can be availed? Loan shall be considered for following purposes: Purchase of a ready built house / flat. Construction of house / flat. Purchase of a site and construction of a house thereon. However, loan for the purchase of only site shall not be considered. For taking over of the HL liability from commercial banks (both public sector and private sector banks) and NBFCs. For acquiring second house / flat where the borrower is already having a house / flat with or without loan. The property to be acquired or the land on which construction is proposed should be non agricultural, having valid documents for usage for Housing / Non agricultural purposes. Loans will not be given for construction or purchase of houses on Agricultural Lands. What is the eligible quantum of loan? Maximum eligible quantum of loan shall be 4 times of average gross annual Income of all the four years as per recorded proof. In case income of borrower is not sufficient to meet the required quantum of loan, whether other family members can join the loan? 1

2 In case the income is not sufficient to meet the housing loan and if there are other members in the family who own separate Agricultural lands and have regular income, they can join the loan as co-borrowers. Whether income of joint owner of agricultural land can be reckoned for arriving at quantum of loan? Income of joint owner of agricultural lands is permitted to be reckoned only if the joint owner becomes a joint borrower by joining execution of loan documents. Whether non-agricultural income can be considered for reaching at eligible quantum of loan & repayment capacity? Yes, Where borrowers or any of the joint borrower/s are having non-agricultural income of regular nature (either through salary or through business or profession), the same may also be reckoned for determining the maximum eligible loan quantum and repayment capacity subject to that income being declared in ITAR or production of documentary evidence of that income acceptable to the Bank. Is there any criterion with respect to repayment capacity? Minimum Net Take Home ( NTH) of the borrower after meeting the existing loan commitments & proposed EMI should not be less than 40% of net income. Whether income proof is required to be submitted? Yes, It should be preferably Income Tax Return. However in case Income Tax returns are not available, original income certificate issued by the Tahsildar/Mandal Revenue Officer/District Revenue Authorities or any competent authority should be submitted as proof of income. What is the margin? Margin is stipulated on the Project Cost as follows: Amount of Loan New House / Old House / Flat Flat Upto Years Years Old Old Upto Rs.20 lakhs 10% 20% 25% Above Rs.20 lakhs and upto 20% 20% 25% Rs.75 lakhs 2

3 Above Rs.75 lakhs 25% 25% 25% In case of Repairs & Renewals, Expansion of existing unit, Upgradation and creation of additional amenities there is a uniform margin of 25%. Also in case of 2 nd & subsequent house, margin is 25%. What are the items that will be included in the project cost? In case of Housing Loans where Project Cost is upto Rs Lacs, Stamp duty, Registration Charges and other Documentation charges can be included in the project cost for the purpose of stipulating Margin as well as for LTV ratio. In all other cases other than above i.e., cases where project cost exceeds Rs Lacs, the margin shall be stipulated only on the basic Project Cost which shall not include expenses towards stamp duty, registration and other documentation charges. Is there any time limit within which construction has to be commenced? Yes, Where housing loan is granted for purchase of site and construction of house thereon, construction of the house to be commenced within a maximum period of twelve months from the date of disbursement of the house loan. In the absence of which,roi as applicable( Presently Base Rate of Bank+ 6%) will be charged from the date of disbursement till the start of construction. What is the applicable rate of interest? Upto Rs Crore : Base Rate (i.e. Presently 10%) Above Rs.1.00 Crore : Base Rate +0.10%( i.e. Presently 10.10%) In case of Housing loan for 3rd unit and above the rate of interest shall be 1% more than the rate mentioned above. Interest shall be compounded monthly but demanded half yearly / yearly depending upon the cropping pattern. However, in respect of dairy farmers and borrowers engaged in poultry activity, demand shall be raised monthly. What security has to be provided? EMT/Registered Mortgage of the House/Flat to be purchased/constructed is taken as security. Whether any third party guarantee is required? 3

4 Yes, Personal guarantee of a person acceptable to the Bank has to be given. In case of loan for flat under construction, if putting through of mortgage is immediately not possible, then what is the procedure? Then in case of only those projects which are approved by our Bank, loan can be considered provided TRIPARTITE AGRREEMENT i.e. agreement between Builder, Borrower and Bank is executed & a suitable guarantee of a person acceptable to Bank is furnished. What are the repayment conditions? Maximum 30 years including repayment holiday subject to ensuring that the entire loan is cleared before the borrower / youngest of the borrowers attains the age of 65 years. What is the periodicity of repayment? The periodicity of repayment i.e., monthly / half yearly / yearly shall be fixed, depending upon the activity carried on / income stream / cropping pattern. What is the Repayment Holiday? In the case of purchase of ready built house/flat, the repayment will commence from the immediately ensuing month / half year / year after the date of disbursement. However the repayment will be stipulated in such a way that it coincides with harvesting / marketing of the agricultural produce. In the case of construction of a house/flat, repayment should start from the immediate harvesting season during which the completion of House/Flat takes place with a maximum moratorium period of 18 months. Whether any pre-payment penalty is charged? No Prepayment penalty shall be charged. What are other charges payable? They are as follows Processing Charges: 0.5% of loan amount Min. Rs. 1500/- & Max. of Rs.10000/-(Waived from 17/ till 31/01/2016). 4

5 Inspection Charges: Upto loan of Rs Lacs--Rs. 200/- per inspection with a maximum of Rs. 600/- per year. In case of Loan above Rs Lacs--Rs. 300/- per inspection or actual expenses incurred whichever is higher. All out of pocket expenses like Outsourcing Charges, CIBIL Charges, CERSAI Charges, Insurance premia, LSR Charges, Valuation Charges to be borne by the borrower. Is there any provision of life insurance of proposed Housing Loan borrower as in case of death of borrower during the currency of loan, his/her family suffers a lot of financial hardship in meeting the payment obligations of the loan? Yes, Our Bank has come out with a life insurance cover for housing loan customers under Creditors Protection Plan of M/s. Canara HSBC Oriental Bank of Commerce Life Insurance Company Limited Group Insurance. For more details contact your branch. Whether any system of in-principal sanction of Housing Loan is prevalent in Bank? Yes. IN-PRINCIPLE SANCTION FOR HOUSING LOANS is a written communication to an eligible customer through a simple letter conveying in-principle (provisional) sanction of Housing Loan, subject to the customer satisfying all the terms and conditions applicable for Housing loans and acceptability of the property proposed to be purchased by the prospective borrower. For more details on this aspect, you may contact nearest Canara Bank branch. Is there any time period within which EMT (deposit of registered sale deed) has to be completed from the date of grant of housing loan, permitted for purchase of site and construction thereof (composite loan) / ready built house. A maximum period of six months is stipulated for completion of EMT (d eposit of registered sale deed) from the date of grant of housing loan permitted for purchase of site and construction thereof (composite loan) / ready built house. Penalty at 2% p.a. on the sanctioned amount after the expiry of six months till completion of EMT (deposit of registered sale deed) / Delayed submission of registered sale deed is stipulated except in case the plot is allotted by the Government/Housing Board and similar autonomous bodies. 5

6 This is not applicable for flats under construction What are the benefits to Housing Loan borrowers under Income Tax Act 1961? Income Tax Act, 1961, provides for the benefits of deduction (u/s 24) in respect of the amount payable by way of interest (upto Rs Lacs) on housing loan and rebate (u/s 88) in respect of repayment of principal amount (max. 1.5 Lacs) of housing loan. Can I submit online application for housing loan? Yes; For submitting online loan application, you have to log on to can also track the status of your loan application through our website. What are other facilities available in this product? First/Joint applicant will be provided with free Credit Card with suitable limits as per their income levels at the time of opening the loan accounts itself. The borrower will be provided with IMB(Internet & Mobile Banking) facility for receiving Pass sheets and interest paid certificates on line. 6