CIR. NO.

:: 230/2015
INDEX :: ADV:: 96
DATE :: 11.05.2015
CREDIT POLICY SECTION
AFZE
RISK MANAGEMENT WING
HEAD OFFICE : BANGALORE-560002

SUB:
- ENHANCEMENT IN THE QUANTUM OF HOUSING LOAN
- OTHER MODIFICIATIONS UNDER EHL

SYNOPSIS

 QUANTUM OF EHL ENHANCED TO SUB-STAFF, CLERICAL AND OFFICER EMPLOYEES

 AVAILMENT OF THE ELIGIBLE BALANCE AMOUNT UNDER EHL AS ADDITIONAL
HOUSING LOAN (AHL) ALLOWED
 REPAYMENT TERMS OF FRESH LOANS MODIFIED
 40% OF THE LOAN SANCTIONED FOR PURCHASE OF PLOT IS STIPULATED IF THE
LOAN IS SANCTIONED FOR PURCHASE OF A PLOT AND CONSTRUCTION OF HOUSE
THEREON IRRESPECTIVE OF THE CADRE
 HL LIMITS/LIABILITIES ALLOWED TO BE CONTINUED ON THE SAME TERMS AND
CONDITIONS OF THE EMPLOYEES 15
YEARS FROM THE DATE OF RETIREMENT (INCLUDING VOLUNTARY RETIREMENT)
FROM THE SERVICES OF THE BANK OR THE EX-EMPLOYEE ATTAINING THE AGE OF
75 YEARS, WHICHEVER IS EARLIER

Attention of branches/ offices is invited to Manual of Instructions on Housing Loan to

Employees (updated till 31.07.2011) wherein detailed guidelines on
Housing Loan (EHL) scheme are enumerated. Further improvements were effected in
the scheme guidelines of EHL and were advised vide Cir. Nos. 270/2013 dated
13.06.2013 and 59/2014 dated 27.01.2014 and 561/2014 dated 10.10.2014.

Board of Directors of the Bank have now permitted further improvement in the terms
and conditions of the . The details of the modified terms
and conditions are furnished in the annexure to this circular.

The modified provisions of EHL scheme shall come into force w.e.f. 30.04.2015.

All other guidelines to the extent not modified as per this circular shall remain
unchanged.

BHARATHI P.V.
GENERAL MANAGER

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 ANNEXURE

1. Quantum
( in Lacs)
Existing Modified
Category Sub Clerical Officers Sub- Clerical/ Officers Executives
Staff staff ordinate Special (Upto Sc IV SC VI
staff Assts. Sc III) & V & VII
Max.
Loan 12.00 18.00 30.00 20.00 30.00 50.00 60.00 75.00
Amount

However, eligible loan quantum shall be arrived at subject to satisfying the

condition that the total recoveries, including the recovery for proposed
EHL/AHL, other loans / advances, Provident Fund, Income Tax and other
deductions of statutory nature shall not exceed 75% of the gross salary of the
employee. In other words, the net take home pay of the employee under no
circumstances be less than 25% of his / her gross salary.

2. Additional Housing Loan (AHL)

Employees who have already availed EHL/AHL previously may avail the
balance eligible amount (i.e., differential between the limit already sanctioned
to the employee under EHL and the revised limits) as AHL (Additional Housing
Loan) for the following purposes :

 Repairs/ renovations/ enlargement of the existing unit. However, the

quantum ceiling under this head will be advised separately.
 purchase/ construction of 2nd housing unit
 takeover of institutional liability as per the existing norms
 conversion of Housing Loans availed under Supplemental Housing Loan
(SHL) along with EHL and / or Housing Finance Scheme of the Bank.
 Clear outside borrowings from institutional and personal sources taken for
the purpose of completing the house construction or for meeting the
differential cost for acquiring subject to the condition that the employee
should have made prior declaration in this regard and proper documentary
proof (complying with any statutory requirements) is submitted.

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3. Repayment

Existing guidelines Modified guidelines @

Towards Towards Total Towards Towards Total
Principal Interest Principal Interest
210 150 360 240 120 360
months months months months months months

@ (for fresh loans only)

4. Eligible amount for purchase of plot in case of proposals for purchase of

site and construction of house thereon

Existing guidelines Modified guidelines **

rd
1/3 of the loan sanctioned for 40% of the loan sanctioned for
purchase of plot is stipulated if the purchase of plot is stipulated if the
loan is sanctioned for purchase of a loan is sanctioned for purchase of a
plot and construction of house plot and construction of house
thereon irrespective of the cadre viz., thereon irrespective of the cadre viz.,
this guideline is applicable to both this guideline is applicable to both
officer employees and workmen officer employees and workmen
employees. employees.
** Applicable in case of loans sanctioned on or after 30.04.2015

5. Continuation of HL liability on cessation from the services of the bank

The clause regarding continuation of HL liability on cessation from the services

of the Bank modified as under:
Existing guidelines Modified guidelines #
HL limits/liabilities is permitted to be HL limits/liabilities is permitted to be
continued on the same terms and continued on the same terms and
conditions of the Employees’ Housing
Loan (EHL) for a period upto 10 years Loan (EHL) for a period upto 15 years
from the date of ceasing to be in from the date of retirement (including
services of the Bank [i.e., those who voluntary retirement) from the
retired from the services of the Bank services of the Bank or the ex-
(including voluntary retirement)]. employee attaining the age of 75
years, whichever is earlier.

However, the repayment tenor However, the repayment tenor

(including continuation of repayment (including continuation of repayment
after retirement) shall not exceed the after retirement) shall not exceed the
repayment tenor stipulated as per repayment tenor stipulated as per
sanction terms. sanction terms.

# Applicable in case of permission accorded on or after 30.04.2015 for

continuation of the limits/ liabilities of Housing Loan.