Purpose of Kaveri Grameena Bank Mortgage Loan
The Mortgage loan is primarily granted for individuals looking to construct a new house. Owning a house is a long-term goal for many people. Owning a house provides a sense of accomplishment and rightly so since it is no small feat. A housing loan is a long-term commitment that requires the borrower to be disciplined in repayment schedules or else risk losing the house.
The Mortgage loans offered by Kaveri Grameena Bank can be used either for purchasing a new house or an apartment or constructing one from scratch. These loans can also be used to buy existing buildings and any house over 25 years old, the period of repayment should be covered by the residential life of the house with the same being certified from an approved valuer from the Bank
Eligibility criteria for Kaveri Grameena Bank Mortgage Loan
The minimum age for availing this loan is 21 years of age with the maximum permissible age being 65 years.
The borrower can be either a salaried person, self-employed or employed in agriculture but should have a steady flow of income
Features of Kaveri Grameena Bank Mortgage Loan
The Mortgage loan amount is determined not by age but by the ratio of EMI (Equated Monthly Instalments) and NMI (Net monthly Income). The NMI is arrived at by dividing the net annual income of the borrower by 12. The loan amount disbursed is decided upon the paying capacity of the borrower.
The loan charges an interest rate of 14.50% p.a. for an overdraft loan or 14% p.a. for a term loan. If the loan is to purchase a site, then the interest rate is 14.75% and if it is to build a house, depending of the amount ranging from RS 25 Lakh but not exceeding RS 75 Lakh, the interest charged is 10% p.a.
The margins of the loan is 25% or 30% of the project cost where the cost of the project does not exceed Rs 75 Lakhs. This cost includes cost involved in additional amenities, rainwater and solar systems and cost of the land.