• Residential houses/flats to be constructed/ purchased by the individuals.
  • Residential houses/flats to be constructed by public agencies like HUDCO, Housing Boards, Local Bodies, Co-operative Societies, Builders or Employers etc. for individuals.

Note: In case of unfinished flats or houses, cost of completion/finishing of house/flats shall be considered as part of total project cost.

  • Residential  house /flat  to  be  constructed/purchased  by a person who is already owning  a house in the town/village where he resides acquired by availing housing loan from any    bank / FI or otherwise and intends to buy/construct a second house in the same or other town/village for the purpose of self- occupation.
  • Residential  house /flat  to  be  constructed/purchased  by a  person  who  intends  to  purchase/construct  a  house  and proposes to let it out on rental basis on account of his posting outside  the  headquarters or  because  he  has  been  provided accommodation by his employer.
  • Residential house / flat to be purchased by a person who    is presently residing as a tenant in that house / flat.
  • For purchase of a plot only, provided a declaration is obtained from the borrower that he will construct a house on the said plot, with the help of bank finance or otherwise, within a period of 2 years. Advance is not permitted against plots purchased on power of attorney basis
  • Supplementary finance in the shape of additional loan may be granted within the overall ceiling for carrying out alterations/ additions/repairs to the houses/flats already financed.
  • Finance   for   repairs   &   renovation   of   houses/flats   already constructed with own resources or with housing loan whether liquidated or outstanding
  • Housing loan can be sanctioned for purchase/construction of 2nd house.
  • Loan can be sanctioned for acquiring third and subsequent house too but such loans shall not be sanctioned under this scheme and are to be dealt as Exposure to Commercial Real Estate (CRE).
  • Individuals having perpetual source of income, who belong to any of the following categories:

    1. Permanent Employees of State / Central Government, Government / Semi-Government Undertakings & Autonomous Bodies.
    2. Employees of Reputed Companies with a minimum of 3 years of service
    3. Professionals, Self Employed Individuals / Businessmen with a minimum 3 years standing in the current profession.
    4. Persons engaged in agricultural and allied activities.
    5. Retired Employees of State / Central Government, Public Sector Undertaking.
    6. Non-Resident Indians are also eligible for financing under the scheme. Sanctioning authorities to satisfy themselves about the income earned by the Non-Resident and take necessary safeguards for extending finance and regular repayment of such loans.

    7. Others:

    In Case of repairs/renovation/alteration/additions to an ancestral property in the name of either father or mother, who is dependent on son / daughter, loan can be granted to the parent(s) by making the son / daughter as co borrower and his /her income can be taken for computation of quantum of loan.
    However, in all such cases mortgage of house shall be mandatory and all the legal heirs of the father/mother should stand as guarantors to the amount of housing loan.

  • Minimum                                                                                 : 18 years as on the date of sanction
  • Maximum age of Applicant at loan maturity  : 70 years.

    In case quantum of loan is computed by adding the income of spouse / child(ren), the age of the youngest borrower / co-borrower can be considered for fixing the tenor of loan subject to the condition that his / her contribution towards the EMI is more than 50%.
  • 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) or have a steady income by way of engagement in any business activity, to be ascertained by the loan apprising officer and concerned sanctioning authority after due diligence.
      • 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.
    • Expected rent accruals (less taxes, cess, etc.) if the house / flat being purchased is proposed to be rented out.
    • Depreciation, subject to some conditions.
    • Regular income from all sources.

 Accordingly the loan amount shall be assessed as under:

  • Loan  for  fresh  construction/purchase  of  house/flat:    Cost of construction / House / Flat less by stipulated margin.
  • 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).
            • 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.
            • 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.


  • For Construction / purchase:

Loan up to 30 Lakh


Loan above Rs. 30 Lakh to Rs. 75 Lakh


Loan above Rs. 75 Lakh


For Purchase of Land / Plot : Borrowers’ contribution (margin) shall not be less than 40% of the cost of land / plot.

  • For Supplementary/repairs/renovation/additions/alterations:

Up to Rs. 5.00 Lakh


Above Rs. 5.00 Lakh to Rs. 10.00 Lakh


Above 10.00 lakh


  • Maximum 9 months from the date of first disbursement in case of loans sanctioned for construction of house/flat (12 Months for Union Territories of J&K and Ladakh).
  •  Maximum   3   months   in   case   of   loans   sanctioned   for repairs/renovations/additions etc.
  • Maximum 3 months in case of loans sanctioned for outright purchase of fully built up house / flat/apartment/land for housing purpose.
  • Till  the date  of  possession  as  mentioned  in  the  agreement   or maximum    3    years,    in    case    of    under    construction  builder/society flat.
  • For salaried / professionals:                1 to 30 years (including moratorium period)
  • For other customers:                             1 TO 20 Years

Subject to number of remaining years of service in case of employees or till the borrower attains the age of 70 years.

For first/second housing loan



Housing Loans under Priority Sector


Up  ` 100.00 Lakh(Non-Priority)

RLR+10 bps

Above ` 100.00 Lakh to  ` 300.00 lakh

RLLR + 25 bps

Above ` 300.00 Lakh

RLLR+40 bps



  • 0.25% on the loan amount plus applicable GST.
    • Minimum               :               Rs.   5,000/-
    • Maximum             :               Rs. 25,000/-.

(No Processing Charges in case of takeover from other banks/ FIs).

50% waiver in processing charges shall be provided to women borrowers (both for sole/joint borrower).

  • NIL on housing loans granted on floating interest rate basis.




  • 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.