- Equitable/ Registered Mortgage of house property/flat to be constructed/ purchased. (House property to include land underneath & appurtenant thereto in case independent house only).
- The title of the property must be clear, marketable and free from encumbrance.
- Where mortgage of house /flat cannot be created immediately and / or possession of house / flat is not given in situations like house/flat or under construction house / flat or to be constructed house/ flat is being purchased/ from the Housing Board/ Co-operative Society / Development Authority/ Construction Company/ Builder and title/conveyance deed is executed in favour of purchaser only after completion of full or partial construction after purchaser making full payment of the cost of house/flat, a tripartite agreement shall be executed amongst the
1) Housing Board/ Development authority / Co-operative Society/ Construction Company/ Builder,
2) The Borrower and
3) The Bank wherein the Housing Board/ Development Authority / Co-operative Society/ Construction Company/ Builder undertakes that the title to house/ flat shall be transferred to the Borrower immediately on receipt of entire sale consideration and the Bank’s lien shall also be marked in their/ his records, thereafter to be followed by execution of mortgage deed in favour of the Bank once the project has been completed and Sale Deed (Deed of apartment/Conveyance Deed in case of Flats) has been executed. Charge to be registered in favour of the Bank with the concerned authorities. Besides tripartite agreement an affidavit cum undertaking from the Housing Board/ Development Authority / Co-operative Society/ Construction Company/ Builder to the effect that the construction shall be as per the sanctioned plan & building bye laws, to be obtained.
Repairs/Additions/Alterations/Extension of existing houses:
- Equitable/ Registered Mortgage of house property/flat to be repaired / renovated. (House property to include land underneath & appurtenant thereto in case independent house only).
- No collateral security /3rd party guarantee is required in all cases except in case of following:
- Pensioners- guarantee of spouse / Legal Heir(s), who is / are entitled for family pension.
- NRIs- 3rd party guarantee of two resident Indians of sufficient means to cover the liability apart from the other securities shall be obtained.
- Loans upto Rs.5.00 lacs (Rs.10.00 lacs in case of employees Goverenment of UT of J & K and UT of Ladakh) to be granted for the purpose of repairs/ additions/alterations /extension of existing houses, where the mortgage of the house property is not taken as security.