Scheme

PSB Kisan Home Loan Scheme

Purpose

For purchase/ construction/ repair/ renovation/ upgradation of house situated in rural and semi urban areas only.

Housing Loan under the scheme would be extended only through Rural & Semi Urban Branches of the Bank.

Age

Borrower in age group between 21 and 60 years.

Quantum of Finance

Maximum Loan upto Rs. 20 Lac, subject to following sub-ceilings:-

a) Loan for purchase of plot not to exceed 20% of the loan sanctioned.

b) Loan for repair / renovation of house, not to exceed Rs.2 lacs.

Loan Eligibility based on the Income of the Borrower

The net income or surplus after payment of loan installments and all other deductions/liabilities should not be less than 40% of the gross income.

Income of spouse, son(s) and daughter(s)-in-law of the borrower may also be considered to arrive at the maximum permissible amount of loan.

Income to be arrived based on Income Tax Return/ Income Certificate issued by the Tahasildar/ Mandal Revenue Officer/ District Revenue Authorities/ Patwari or any competent authority  taking into account extent of land holdings owned by the party, type of crops cultivated, average market price of the crop, cost of cultivation of the crop etc.

Security

By way of Registered/ Equitable Mortgage of property for which housing loan is sought, as per legal opinion.

However, where the mortgage of property for which housing loan is sought is not possible, any of the following alternate securities may be considered:

1. Mortgageable property (other than agriculture and non alienated property) having realizable value not less than 150% of the loan amount. The title of such property must be clear, marketable and free from encumbrance.
2. LIC Policy having surrender value not less than 150% of the loan amount.
3. KVP, NSC having face value not less than 150% of the loan amount.

Margin

  Following minimum margin to be stipulated:

 a) For Purchase of Plot                                    -       40% of cost

 b) For construction of House                          -        20% of cost of construction

 c) For repair/renovation/upgradation              -        20% of cost of repair etc.

 d) For Purchase of House                               -        25% of the cost

Rate of Interest

1 year MCLR i.e. 8.40% at present

Processing Charges

Processing charges are Nil  upto 10.11.2021

Guarantee

In case of Co-borrower: Obtaining of Guarantee may be waived.

In all other cases: Guarantee of spouse, Major son(s) or third party may be obtained, if available

Repayment

Maximum repayment period is 20 years, subject to the condition that the entire loan amount including interest should be recovered before the borrower attains the age of 70 years.

The repayment should commence not later than 6 months from the date of release of last disbursement ‘or’ 24 months from the date of first disbursement ‘or’ first harvest of the crops after the date of completion of house, whichever is earlier. The interest during the gestation period to be paid as and when it falls due.