Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS)

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Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS)

The Ministry of Housing and Urban Poverty Alleviation, Government of India, has established a Credit Risk Guarantee Fund Trust for providing guarantees in respect of low-income Housing Loans.

Under the Scheme, the Trust will provide credit risk guarantee to the lending institutions against their housing loans up to Rs 5.00 lakh granted to the borrowers in the Economically Weaker Section (EWS)/ Lower Income Group(LIG) categories in urban area without requiring any collateral security and/or third party guarantee.

The extent of Guarantee Cover to be provided under the Scheme is 90% of the amount in default in respect of loan amount up to Rs 2.00 lakh and 85% of the amount in default for housing loan above Rs 2.00 lakh and up to Rs 5.00 lakh.

New individual borrowers in EWS/LIG category of the population who are seeking individual housing loan not exceeding a sum of Rs 5.00 Lakh or such amount as may be decided by the Trust from time to time and a housing unit size upto 430 sqft (40 sqm) carpet area and to which housing loan has been provided without any collateral security and/or third party guarantee. Eligible borrowers, as defined above, forming a group or housing society of at least 20 members, shall also be eligible under the scheme.

The eligible borrower shall be required to submit an undertaking to the lending institution to the effect that she/he has not availed any other housing loan covered under this scheme nor any additional risk cover has been granted to the housing loan availed by her/him by Government or by any general insurer or any institution or any other person or association of persons carrying on the business of insurance, guarantee or indemnity.

Eligible Activity

Activities that are eligible for Guarantee Cover are home improvement, construction, acquisition and purchase of new or second hand dwelling units involving a Housing Loan amount not exceeding `5 lakh per person. Loans given fully/partly for renovation/repairs are not eligible for the Guarantee Cover under the Scheme

Housing Loans not eligible under the scheme

  • The following Housing Loans shall not be eligible for being guaranteed under the scheme
  • Any housing loan in respect of which risks are additionally covered by Government or by any general insurer or any institution or any other person or association of persons carrying on the business of insurance, guarantee or indemnity to the extent they are so covered.
  • Any housing loan granted to any borrower, who has availed himself of any other housing loan covered under the scheme or under the schemes mentioned in clause (I) above and where the lending institutions has invoked the guarantee provided by the Trust or under the schemes mentioned in clause (I) but has not repaid any portion of the amount due to the Trust or under the schemes mentioned in clause (I) as the case may be, by reason of any default on the part of the borrower in respect of that housing loan.
  • Any housing loan which has been sanctioned by the lending institution against collateral security and/or third party guarantee.
  • Any housing loan which has been sanctioned by the lending institution with interest rate more than the prevailing rate applicable for that eligible loan category or 2% over the base-Rate of the lending institution whichever is easier.

Economically Weaker Section (EWS)

Economically Weaker Section (EWS) means households with household income upto `1,00,000/- per annum or as revised by the Ministry of Housing & Urban Poverty Allevation, Government of India, from time to time.

Low Income Group (LIG) category

Lower Income Group (LIG) means households with household income between `1,00,001/- to `2,00,000/- per annum or as fixed by the Ministry of Housing & Urban Poverty Allevation, Government of India, from time to time.

Low Income Housing

A Housing unit, for economically weaker and low income individuals of size upto 430 Sqft (40 Sqm) carpet area.

Tenure of guarantee cover

Guarantee cover shall commence from guarantee start date and shall run through the agreed tenure of the Housing Loan and for a maximum period of 25 years or loan termination date, whichever is earlier.

Q

Can I avail of Home Loan from Bank of Baroda?

  • Yes, you can avail a Home Loan from Bank of Baroda, if you plan to construct or purchase a house/flat or extend your existing house/flat and,you are :
  • A minimum of 21 years
  • Employed or Self Employed with regular income.
Q

Who can be co-applicant?

The proposed owners of the residential accommodation as per the Agreement for sale, in respect of which financial assistance is sought, must be co-applicants. Usually joint applications are from husband-wife, father-son or mother-son etc.

Q

How much does Bank of Baroda lend?

  • Loan amount is determined on the basis of the repaying capacity of the applicant/s. Repaying capacity takes into consideration factors such as age, income, dependents, assets, liabilities, stability of occupation and continuity of income, savings etc.
  • The maximum loan would be Rs.10.00 Crore per unit to any individual applicant based on the area where property is proposed to be constructed/purchased. We will extend loan upto 90% (for fresh houses / flat) of the cost of property under our Housing Loan Scheme.
Q

For how long a period can I get the loan?

We grant term upto a maximum of 30 years. The term for the loan will under no circumstances exceed the age of retirement or completion of 65 years of age, whichever is earlier.

Q

But can I prepay the loan ahead of schedule?

Yes, you have the option to prepay the loan ahead of schedule either in part or in full from your own sources.

Q

What is the mode of repayment?

  • Equated Monthly Instalment (EMI) : It means a uniform lumpsum amount, which includes repayment of a part of the principal amount and payment of interest, calculated on daily products basis.
    Or
  • Fixing the monthly / quarterly instalments on graduated basis is permitted of EMI as requested by customers.
Q

What is the security for the loan?

The security for the loan is equitable mortgage of the property to be financed. The security for the loan is equitable mortgage of the property to be financed.

Q

Do you insist on LIC policy as additional collateral security?

No, it is not mandatory.

Q

What are the supporting documents required while applying for the loan?

Common requirements for all applicants.

  • Application form duly filled in (with photograph of all the applicant).
  • Residence and Age verification, which may be established from the PAN card, Election ID, Passport, Drivers licence and Ration card etc.
  • Copy of approved plan and sanction letter from local civic authority.
  • Copy of NA permission.
  • One/two guarantor/s form/s and salary certificates. - If guarantor is in business, copies of I.T. returns or assessment orders for the last three years are required.
  • Bank Pass-book of statements for the last two years.
  • Latest salary slip/statement showing all deductions in case of employed applicants.
  • Certified copies of Balance Sheets and Profit and Loss accounts, IT acknowledgments, advance tax challans (for both company/firm and personal account) for the last three years in case of self employed applicants.
  • Memorandum/Articles of Association for companies, partnership deeds for firms and a brief profile of your company/firm in case of self employed applicants.
  • Residence and Age verification, which may be established from the PAN card, Election ID, Passport, Drivers license and Ration card etc.

Additional requirement.

  • In case of purchase from builder
    • Copy of Agreement for sale.
    • Copy of registration receipt.
    • Copy of sanctioned plan & sanction letter of the competent authorities.
    • Copy of NA permission/ULC order.
    • Copies of receipts of payments already made.
    • NOC from builders in our format.
  • In case of direct allotment in a Co-operative Housing Society
    • Allotment letter.
    • Share certificate.Society registration certificate.
    • Copy of sale/lease deed in favour of the society.
    • NOC from society in our format.
    • Possession letter in original.
  • In case of resale
    • Copy of all previous vendors agreements duly stamped and registered and the registration receipts. (original to be given before disbursement).
    • NOC from Society/Builder in our format.
    • Original Share Certificate.
Q

Whether you have any Housing loan product for NRIs?

Yes. We have Housing Loan product for NRIs / PIOs . For details, please visit our website at Housing Loans to NRIs / PIOs

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