Purpose:
Loan under this scheme will be available for Purchase / Construction / Extension/ Repairs & Renovation / Modification of Residential Property / Mortgage Loan / Constructions of clinic or office premises. This loan can be combined with Griha Prakash/ Griha Shobha or any other Schemes. If the amount elegible as per scheme is combinedwith any other scheme then area of operation, rate of intrest & uofront fees, shall be as per the scheme to which it is combined with.

Customers who want higher quantum of loan or are having defective title to the property can also avail loans under this scheme.

Quantum of Loan:
95% of liquid value of the security on the date of disbursement subject to minimum Rs.50,000/-. In case of Life Insurance policy the policy should be in force. The Area Office to obtain Surrender Value Quotation from the concerned Insurer and it should be kept with the Loan Calculation Sheet. In case of NSC abd FD we should take its face value as liquid value of security without considering interest accrued on the same.

The Maximum loan would be 95% of the Surrender Value of the Policy assigned or face value of NSC or FDs with Nationalised Banks.

Maximum term of Loan:
Co-terminus with the Maturity of Security.

Rate of Interest:
Floating Rate applicable to Non-core business LESS 2%.
Fixed Rate will not be allowed.

Security:

1. Equitable Mortgage of House / Flat.
   • Life Insurance Policy
   • N.S.C.
   • F.D. of Nationalized Banks.
   
   
2. Loan Agreement
   
   
3. Demand Promissory Note.

1. The security will be enforced if the account becomes NPA, i.e., if interest / EMI amounts are overdue by more than 3 months.
2. Any amount received will be first adjusted towards additional interest, interest, EMI, principal or any other charges due from customer. Any surplus remaining thereafter will be refunded to the borrower. Any deficit will be recovered from customer.

Mode of Repayment:
Equated Monthly Instalments or by way of Interest Choice will be given to the applicant to select mode of repayment. However mode of repayment once selected cannot be changed. Further, if the scheme is combined with any other existing scheme; the mode of repayment will be only EMI.

Loan to be disbursed only after receipt of Life Insurance Policies duly assigned in favour of LICHFL, if the loan is against assignment of Life Insurance Policies. If the loan is against hypothecation of NSC and / or F.D, disbursement to be made on receipt of NSC and / or F.D. receipt of Nationalised Banks after marking of our lien on the same. Area Office should ensure that under no circumstances the loan amount is disbursed without assignment or marking of lien.

Incidental Expenses:
Upfront Fees: Rs.1000/- irrespective of amount of loan.

Requirements:

1. Application Form. The details of security to be provided should be given separately.
2. Promissory note / Receipt.
3. PD Cheques or ECS.
4. Declaration about utilization of loan amount.
5. LIC Policies to be duly assigned in favour of LICHFL.
6. NSC/FDs with our lien marked on the same.