ABHYUDAYA CO-OPERATIVE BANK LTD Introduction Abhyudaya Co-operative Bank Ltd is an multi-state ,India and operating as a co-operative bank since 1965.

In the year 1964several social workers and activists came together and formed Abhyudaya Co-operative Credit Society Ltd with a relatively small share capital of Rs.5000 (US$84).

Within a short period of time Abhyudaya bank Co-op, Credit Society got converted into an Urban Co- operative bank.

In June 1965 Abhyudaya co-operative Bank Ltd was finally established as a full fledged co-operative bank. It was conferred with Scheduled bank status by the Reserve bank of India in the year 1988.

On 11 January 2007 the bank was registered as a multi-state co- operative bank by the Central Register, New Delhi.

Objectives

To give clarity about various aspects of credit including acceptance, appraisal, scrutiny, sanction, delegation, documentation and post-disbursement

follow-up.

To give proper direction to the Branches and other

functional heads about the areas in which credit is to be encouraged and to fix maximum credit to be given under different sectors and purposes.

To manage the Credit Risk i.e. to identify, measure and mitigate the Credit Risk.

To encourage/achieve and continue minimum of 40% of total Adjusted Net Bank Credit towards Priority Sector Advances and 10% towards Weaker Section.

To maintain the CD Ratio less than 68% throughout the year and to ensure that the Total Exposure of the Bank includes the Amount Sanctioned but not Disbursed, Un-utilized portion of CC and other Working Capital facilities. However, the CD Ratio should not exceed 70%. Though RBI Circular permits granting of advances upto 70% of Deposits and 70% of own funds, our objective is to maintain CD Ratio less than 68% of only Deposits.

To strengthen credit appraisal, improve post sanction follow-up, monitor credit facilities and to improve quality of credit.

To diversify loan portfolio to different sectors and new areas like export finance / retail finance etc.

To reduce the gross NPAs of the Bank to a reasonable level during the year by strengthening appraisal, sanction, post disbursement supervision and efficient recovery steps.

To maximize profitability and return on capital.

Purpose

Purchase of Flat (New or resale) and construction of house, including extension to existing Flat/ house and takeover of Housing loan from other financial Institutions

Maximum amount

Maximum Amount of Rs.70.00Lakh to the beneficiary of the dwelling unit. (At present Rs.25.00Lakh)

House Repair or Renovation/alteration.

Maximum Loan amt. Rs. 10.00 Lakh

Loan Amount Eligibility

Any Individual, Businessman, professional, Self-Employed

salaried person having regular source of income.

Property should be in the name of applicant (Individual)

The Co-applicant is necessary for Housing Loans. Co-

applicant will mainly be spouse or son or daughter or

father or mother of the Principal Borrower and he/she

may be an earning or non-earning member. In these cases the

income of the Co-Applicant can be clubbed for calculation of

eligible loan amount. In the absence of the above Co-

applicants, Brother or Sister may be taken as Co-

applicant, but their Income shall not be clubbed for

calculation of eligible loan amount.

In case of joint Agreements in Housing Loans, the

Purchasers (Owners) will be the Borrowers and hence there is

no need for separate Co-Applicants.

Any Individual, Businessman, professional, Self-Employed

salaried person having regular source of income.

Property should be in the name of applicant (Individual)

Or

B)

Eligibility as per Repayment Capacity =

Repayment capacity * 100000

EMI factor

Wherein,

Repayment Capacity = Net monthly Income –(Less) minimum

Take home Pay –(Less) Other Loan deduction.

Minimum Take Home salary/ Income = 40% of the Net Income/

Salary p.m. Subject to Minimum of Rs.8000/- & Maximum of

Rs.20000/-

Which ever is lower.

Repayment

Up to 20years (240months) including the period of

moratorium or holiday period. The moratorium or repayment

holiday may be granted

A) at the option of the beneficiary

B) till Completion of construction or 18 months from the date of

disbursement of first installment which ever is earlier.

(Repayment period subject to age of applicant.)

Rate of interest

Loan sanctioned up to and including Rs.15.00lakh

= 12.00%.*

Loan sanctioned above Rs.15.00Lakh up to Rs.25.00lakh

=14.00%*.

Loan sanctioned Above Rs.25.00lakh to Rs.70.00lakh

= 15.00%*

*Floating Rate apply.

Margin

Up to Rs.15.00lakh 10%

Above Rs.15.00Lakh to Rs.20.00Lakh 15%

Above Rs.20.00lakh to Rs.70.00lakh 20%.

Membership

Regular membership for the applicant and

Co- Applicant and Nominal Membership for sureties up to

Rs.25.00Lakh.

Sureties to be made regular member for loan above Rs.25.00Lakh.

Sureties

(a) Loans up to Rs.20.00 Lakh – One Surety with net

Salary/Income above Rs.12000 /- p.m.

(b) Loans above Rs.20.00 Lakh - One Surety with net

Salary/Income above Rs.20,000/- p.m. or Two Sureties with Net

Salary/ Income above Rs.12000/- p.m.

(c) In case the Housing Loan Agreement is in the joint names of husband and wife and both are employed in reputed company/ organization and having good repayment capacity, then one Surety either family member or outsiders Net Salary/Income above Rs.12000/- be obtained for loans upto Rs.70.00 Lakh.

Prime securities

Mortgage & Insurance of Flat/ House financed.

Collateral security

LIP, NSC, (Not to FDR etc if available insist.)

Service Charges

0.70% of sanctioned amount.

Share Linkage

Loan up Rs.20.00Lakh 1% or 250shares(Max) which ever is

less

Loan above Rs.20.00Lakh 1% or 500 Shares(Max.) which ever is

less

Others

Valuation of property is must for resale flat:-

I) Value of Flat/House or amount applied up to Rs.25.00Lakh,

valuation by Bank official will be relied upon.

In case of value of more than Rs.25.00Lakh, valuation by

professionally qualified independent Bank’s panel valuer will only

be relied upon.

II) In case of purchase from Builder (First Purchase), the valuation

from the valuer is not necessary, if there is no considerable

difference in the agreement & Govt. Value.

HOUSING DEVELOPMENT FINANCE CORPORATION

LTD.(HDFC)

INTRODUCTION

HDFC is an Indian financial conglomerate based in Mumbai,

India. It is a major player for housing finance in India. it also has a

presence in banking ,life and general insurance ,asset

management ,venture capital and education loans.

It was founded in 1977 as the first specialized

mortgage company in India .HDFC was promoted by the

industrial credit and investment corporation of India .

In 2000 ,HDFC asset management company

launched its mutual fund schemes . In the same year ,IRDA

granted registration to HDFC standard life insurance ,as the first

private sector life insurance company in India.

It is important to choose a good housing finance

company which can handhold the consumer right through his home

buying process. Since a home loan is long term commitment of 15-

20 years several factors like expertise , quality of services ,in-depth

domain knowledge and the company’s level of commitment and

transparency right through ,the loan procedures, the fine print,

quality of services offered and safe retrieval of the title deed are

critical

HDFC Home Loan Advantages

Counselling and advisory services for acquiring a property

Instant home loan approval

Widest range of home loan products & services like home

loans, home extension loans, loans to professionals for office

or loans (loan against property) ,short term bridging loan etc.

Loan from any office for purchase of home anywhere in

India

Loan approval even before a property is selected

Flexible loan repayment options like step up repayment

facility ,flexible loan installments plan, tranche based EMI ,

accelerated repayment scheme & telescopic repayment

option

Vast network of over351 in India ,offices in Singapore ,

London & Dubai and franchises in the gulf cooperation

council (GCC)region.

Free & safe document storage

Online application facility

Purpose

Purchase of

Flat , raw house , bungalow from developers

Existing freehold properties

Properties in an existing or proposed

co- operative housing society or apartment

owner’s association

Applicant and co-applicant to the loan

Home loans can be applied for either individually or

jointly . proposed owners of the property, will have to be

co-applicants. However, the co-applicants need not be co

owners.

Loan Amount Eligibility

Salaried individual or self employed individual or self employed

professional like doctor ,lawyer,etc

NRI or resident Indians

Aged between 21 years and 65 years

Have a good CIBIL credit score

Good repayment capacity with fixed and stable income source.

Repayment

1 years to 20 years.

Amount funded

Up to 85 % of property value

Processing Fees

0.5 % of the loan amount capped at Rs.10000

Interest rate

Upto and including Rs.30 lakhs -10.50 % - 11.00 %

Over Rs. 30 Lakhs -10.75 % - 11.25 %