Actual loan amount will be determined taking into consideration such factors as applicant’s income and repaying capacity, age, assets and liabilities, cost of the proposed house/flat etc. To enhance loan eligibility following options may be added:
- Income of spouse and / or child(ren) living with applicant, provided:
- They have a steady income by way of salary and his/ her salary account is maintained with Bank (preferably J&K Bank).
- They are made co-borrowers i.e. loan to be sanctioned in joint names.
- They (optional for spouse) are the joint owners of the land/flat/house.
- Only residual income of spouse / son / daughter i.e. income net of all deductions including deductions towards servicing of already availed loans (if any) to be considered.
- The income proof documents of spouse / child(ren) as applicable / stipulated under scheme shall be obtained to verify their income
2. Expected rent accruals (less taxes, cess, etc.) if the house / flat being purchased is proposed to be rented out.
3. Depreciation, subject to some conditions.
4. Regular income from all sources.
Accordingly the loan amount shall be assessed as under:
i. Loan for fresh construction/purchase of house/flat: Cost of construction / House / Flat less by stipulated margin.
ii. For State/Central Govt Pensioners: 36 times of the net monthly pension subject to the condition that loan sanctioned shall be fully repaid by the time pensioner attains the age of 70 years and total deductions do not exceed 50% of their monthly income.
- Loan for carrying out repairs / renovations / additions / alterations:
- For carrying out repairs / renovations to the house / flat: Maximum Rs.25.00 lacs
- For carrying out addition / alteration to house / flat which is not acquired by bank finance or where loan has been liquidated / adjusted: No cap on maximum loan amount subject to the condition that the addition / alteration is done after obtaining valid permission from competent authority / Municipality (BOCA)
iii. Purchase of land: Housing loan facility can be sanctioned for purchase of land/plot to be used for construction of house. The finance for purchase of land/plot shall form part of housing loan within the overall entitlement under the scheme and shall be restricted to the extent of maximum Rs. 50.00 Lakh or 60% of the cost of plot of land whichever is less, provided the area of proposed land shall not be more than 5440 Sq ft or 1 Kanal. Loan amount for purchase of plot shall be within the overall ceiling of housing loan eligibility and in no case should surpass 60% of total loan eligibility.
vi. Loan for construction of house for borrowers who have already availed housing loan for purchase of land (plot): Loan Limit in such cases shall be fixed after considering the cost of construction (of house / flat) less by the stipulated margin. However, it shall be ensured that EMI for the loan for construction of house flat together with the EMI towards loan already availed for purchase land / plot and any other credit facility does not exceed the stipulated deductions.
Gross deductions inclusive of loan EMI/s (existing as well as proposed) should not exceed:
- 60% of gross income: For individuals having income from all sources / taxable income up to Rs. 10.00 lakh p.a
- 65% of gross income: For individuals having income from all sources above Rs. 10.00 lakh up to Rs. 30.00 lakh p.a
- 75% of gross income: For individuals having income from all sources above Rs. 30.00 lakh p.a
Note: Estimated income tax / TDS, PF contribution, Premia towards insurance and other compulsory deductions shall be included for computing gross deductions.