1. Home Loan Master Circular – Adv/65/14-15 dt 14.8.14

2. Product- Code Product Description 4405 - 42 HL to Residents – Floating ROI 4405 - 44 HL to Residents – Fixed ROI 4405 - 45 HL to Residents – Repairs & Renovation 4405 - 43 HL to Non-Resident Indians (NRIs) 4405 – 46 Loan for Purchase of House Site -Residents 4405 – 47 Loan for Purchase of House Site by NRIs 4405 – 40 Home Improve 4405 - 41 Home Improve Combo 4405 - 49 Home Loan (CRE)

3. Financial: Project Cost, Margin, Quantum, Calculation of eligible loan amount, assessment of repayment capacity and ensuring prescribed LTVRatio Legal Free from encumbrance & Borrower has clear title Technical Should not contravene the regulations relating to Housing Development issued by statutory authorities Property is located in unapproved and / or new corporations / municipalities / Panchayat areas should be discouraged. Valuation Valuation our Approved Engineer & Valuation reasonable

4. Eligibility Age at Entry / Exit Purpose Income Criteria Quantum of Loan / Eligibility Margin Home Loan

5. Rate of Interest Period of Loan Take Home Pay Security/ EM /Registration of EM Processing Fee CIBIL / EXPERIAN VERIFICATION DISBURSEMENT OF LOAN

6. Conditions for Reimbursment ZLCC is empowered Investment made from own sources during preceding 6 months Restricted to investment made for construction / repair / renovation / purchase of property including registration fee and stamp duty paid Small expenditure like furnishing, wood work not to be considered Quantum of reimbursement based on (i) the present RSVas per EVR or (ii) investment made whichever is lower. Expenditure receipts should be obtained and kept on record Margin of 25% or as stipulated in the relevant scheme whichever is higher is to be maintained, while arriving at the eligible limit

7. Purpose Purchase / construct a new house / flat Purchase house site and construction of house thereon Purchase an existing house / flat Extend an existing house/ additional construction Repair / renovate an existing house / flat –Max. Rs.5 lakhs Max. Repayment period: 120 months Margin: 30% (Minimum) on the estimate Take over Home Loans from other Banks / Housing Finance Institutions approved by National Housing Bank for Housing Finance Reimbursement of cost incurred for purchase / construction of house / flatReimbursement

8. HL - Construction of House Copy of the ‘Approved Plan’ in the name of the person applying for loan An affidavit –cum-undertaking is to be obtained from applicant that he / she shall not violate the sanctioned plan and construction shall be strictly as per the sanctioned plan ‘Completion Certificate’ from our panel engineer within three months of completion of construction

9. Purchase of Land & Construction of House Loan Amount for cost of land not to exceed 50% of the total Project Cost, if the property is in rural / semi urban area If property is in urban / metro / city, loan towards cost of land may be considered based on guideline / market value whichever is higher Subject to maintaining requisite margin on the sale value as per agreement or RSV whichever is lower Total loan should be for cost of land as mentioned in (a) and (b) above and for cost of construction (Based on estimates with requisite margin). Construction should be completed within stipulated holiday period

10. Purchase of existing house / flat Affidavit-cum-undertaking that built-up property has been constructed as per sanctioned plan and / or building bye-laws As far as possible has a completion certificate Before sanction, Approved Engineer must certify that built up property is strictly as per sanctioned plan and / or building bye-laws Residual life of the building/flat – min 10 years > repayment period ZLCC - 5 years more than the repayment period’ of the loan Old Building without approval – ZLCC –Assessed for Tax & paid upto date – repayment period + 5 years

11. Purchase of flats under construction If registration of UDS / flat is already done before disbursal OR at the time of first disbursal of loan - Can be sanctioned by respective sanctioning authorities Subsequent loan instalments should be disbursed only after creation of EM If registration is to be done at a later stage, obtain prior Administrative clearance from ZLCC –Limit is classified as unsecured till registration is done in favour of borrower –Margin - Upfront

12. Income Criteria Rent, interest on investment can be considered, provided proof by way of declaration in IT Return/Rent receipts/Lease Agreement / credit to bank account for a reasonable period If HUF income is taken into account, permission from CO should be obtained. Declaration from all the members of HUF shall be obtained giving consent for taking into account the income of HUF also as income of Karta or co-parcener, Gross income net of tax before deducting depreciation based on last three years’ IT Returns ZLCC may consider the higher of the following –Last 3 years profit / all Govt due paid –Income as per latest IT Return + Depreciation claimed –5% of annual sales revenue as per latest audited BS – in case of partnership firms, depreciation and sales revenue can be reckoned as per profit sharing ratio

13. Security Second Legal opinion to be obtained for loan limit => Rs.50 lakhs (Circular ADV. 71/2011-12 dated 27/7/2011) Second charge can be approved by ZLCC, in lieu of exclusive charge Employees of Govt Dept / PSUs who have availed Housing Loan from their employer against mortgage of property by way of first charge, subject to satisfying margin and other requirements A letter/ NOC to be obtained from the Govt Dept / PSU according permission to avail Housing Loan from us and agreeing to cede second charge in our favour In certain cases, applicants / borrowers may request permission from the bank for ceding second charge in favour of the Government Department / PSUs for availing additional loan from their employers and the same may be considered by Sanctioning authorities, subject compliance of all Sanction Terms of the loan with us Mortgage should be created by a branch in the State where the property is located and Stamp Duty as applicable in the respective State has to be paid. The branch processing the loan application should seek the help of branch(es) at the place where the property is situated to obtain LSR and EVR and the site visit report

14. EVR Valuation from two different panel valuers for Security Value of Rs.50 lakhs and above in case of HL if LTV ratio is 50% and more HL accounts with balance o/s of above Rs.50 lakhs and HL under SMA / NPA - to be revalued once in 3 years EVR need not be insisted if the flat /plot/house is acquired from Housing Board, State Development authorities / Bodies/ Local Improvement Trust / Housing Development agencies