DECCAN GRAMEENA BANK

(B) Maximum limit upto Rs.10 lakhs for
Repair or renovation of an existing house / flat.
The actual loan amount is to be determined on the basis of repayment capacity taking into
account income& age of the applicant (s) as under :
I. For borrowers between 21 to 45 years of age :
i) 60 times the net monthly income of the applicant in case of salaried persons (i.e.
net of all deductions including loan repayments and actual monthly tax deductions
at source).
ii)
5 times net annual income in case of others (i.e. income as per latest income tax
return filed less loan repayments and taxes payable). For agriculturists, the
annual net income should be arrived at by branches based on the nature of their
activity (i.e. farming, dairy, poultry, orchards), land holding, cropping pattern,
yield, etc. and average level of income derived there from in the area.
II. For borrowers over 45 years of age :
i) 48 times the net monthly income of the applicant in case of salaried persons (i.e.
net of all deductions including loan repayments and actual monthly tax deductions
at source).
ii)
iii)
4 times the net annual income in case of others (i.e. income as per latest income
tax return filed less loan repayments and taxes payable). For agriculturists, the
annual net income should be arrived at by branches based on the nature of their
activity (i.e. farming, dairy, poultry, orchards), land holding, cropping pattern,
yield, etc. and average level of income derived there from in the area.
In respect of loans where one of the joint borrower (s) is aged below 45 years, the
eligible loan amount is to be computed aggregating as under:
Borrower aged below 45 years
Borrower aged 45 years and above
60 times NMI / 5 times NAI
48 times NMI / 4 times NAI
However, repayment in the above case can be considered to the maximum period i.e. 20
years.
Income of the spouse
Income of the spouse can be added while calculating the eligible amount where :
i) the property is jointly held with the spouse and the spouse is a co-borrower; or
ii)
Expected Rental
the property is held in single name and the spouse stands as a guarantor.
The expected rental less taxes, cess, etc. in the case of house / flat being purchased, which
is proposed to be rented out may be added for computation of the eligible loan amount.
Other Income
Regular income from all sources can be considered to arrive at total eligible loan amount,
provided the sanctioning authority is satisfied about the proof of the income.
5. MARGIN : The following minimum margins are prescribed :
For purchase or construction of a new house / flat : 15% of the total project cost i.e. cost of
land, additional amenities, registration amount, stamp duty, etc.
For purchase plot of land and construction of a house (both) : 30% for purchase of plot
which includes cost of land, stamp duty and registration etc.
Crl. ADV-79 4