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Under the check-off arrangement, an irrevocable letter of authority is required to be<br />
obtained from the borrower (employee) concerned and a letter of undertaking from the<br />
employer also is to be taken as per Annexure-D & E.<br />
In case of Govt., officers, who are themselves the drawing and disbursing authorities<br />
and avail housing loans, separate undertaking letters to be obtained, as per Annexure E1.<br />
Post dated cheques<br />
Post dated cheques should be obtained invariably in all cases even where check-off facility<br />
is available and follow the instructions as per Annexure-III.<br />
13. PRE-PAYMENT CHARGES :<br />
i) A 2% prepayment charge will be levied on any amount prepaid in excess of the<br />
EMI payments and also pre-closure.<br />
ii)<br />
A 2% prepayment charges will be levied in case of closure of the account for<br />
reasons of take-over by any other bank / financial institution.<br />
However, this prepayment charges may be waived in case where the borrower is<br />
deceased, and / or where the original repayment schedule envisages a bullet<br />
repayment at the time of retirement.<br />
14. PROCESSING FEES<br />
Upto Rs.2.00 lakhs : Nil<br />
Above Rs.2.00 lakhs :<br />
0.50% (Subject to a maximum of Rs.10,000/-)<br />
In case of registered mortgage the stamp duty, registration fees and any other<br />
expenses arising out of it should be borne by the borrower.<br />
Once the account becomes an NPA, a fresh Search Report should be obtained from<br />
the Bank’s advocate preferably from a different advocate and all the charges to be borne by<br />
the borrower.<br />
15. INSURANCE : The house / flat purchased / constructed should be insured against<br />
the risk of fire / riots / earthquakes / lightning, floods, etc., in the joint names of the borrower<br />
and the Bank for the full market value of the property or the outstanding loan amount,<br />
whichever is higher. A copy of the policy is to be retained with the Bank. The borrowers may<br />
be encouraged to obtain insurance for the full estimated period of the loan (Single- Premium<br />
Policy) to be able to avail substantial discounts offered by insurance companies. This would<br />
also reduce Bank’s follow-up costs.<br />
16. INSPECTION : Pre-sanction & post-sanction inspections to be carried out and to be<br />
recorded in the inspection register.<br />
Appropriate noting to be done in the Inspection Register for having conducted for all<br />
subsequent inspections.<br />
Every 3 years for Standard Assets.<br />
If the EMIs are not forthcoming for the two successive months inspection would be<br />
required immediately.<br />
For NPAs : At quarterly intervals.<br />
17. DISCRETIONARY POWERS : For sanctioning of Housing loans the existing<br />
discretionary powers from Scale-I to Scale-III is mentioned as under :<br />
JMGS-I : NIL<br />
MMGS-II : Rs.1.00 lakh<br />
MMGS-III : Rs.3.00 lakhs<br />
AM : Rs.3.00 lakhs<br />
GM : Rs.25.00 lakhs<br />
Crl. ADV-79 8
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