Bank of Maharashtra Home Loan

a) MahaSuper Housing Loan

For repairs/renovations/alterations of existing houses/flats for standalone borrowers 

The Bank of Maharashtra home loan offers multiple features which are:

• It is a multipurpose loan extended towards renovation, repairs, and alterations of existing houses or flats for new standalone borrowers on an encumbered housing property.
• This loan is extended in the form of term loans.
• This loan can be availed by salaried professionals with a minimum job experience of 1 year in his/her current organization. The applicant must be a permanent and confirmed employee of the organization. Temporary employees or interns are not applicable for this loan.
• This loan can also be availed by Self-employed professionals and businessmen.
• This loan is also extended to pensioners, holding a pension account with the bank and having a steady and good source of income.
• An applicant whether salaried, self-employed non-professional or a self-employed professional can apply for a Bank of Maharashtra home loan only after reaching 21 years of age, i.e. an applicant below the age of 21 years is not deemed eligible for a loan with the bank.
• Bank of Maharashtra home loans are offered under floating rate type method, and the interest on the same is calculated on a daily basis payable at the end of each month.
• Even Farmers with a minimum land holding of 5 acres and a steady source of income can apply for Bank of Maharashtra home loans.
• The bank does not require any minimum or maximum margin for the purpose of extending this loan.
• The bank requires a collateral security in the form of equitable or registered mortgage on the value of the housing property in question.
• The loan is sanctioned based upon the annual income of the applicant. The amount of minimum income of the applicant, in order to attain the required Bank of Maharashtra home loan eligibility varies depending upon the business profile of the applicant.
• Salaried professional with a minimum annual income of Rs. 3 lakhs is eligible for getting a loan from the bank. The income to be considered in this case is the last year’s income.
• Non-salaried professional or a businessman with a minimum annual income of Rs. 3 lakhs is eligible for getting a loan. The income to be considered in this case is the last year’s income.
• For applicants engaged in agriculture and such allied activities, the minimum annual income limit is set at Rs.3 lakhs. Any applicant having an income of less than Rs .3 lakhs is not deemed eligible for a loan with the bank and cannot apply for the same.

Loan Amount: The amount of loan to be sanctioned depends upon the value of the property and the cost of renovation or extension work for which the loan has been taken. The income and the area of residence of an applicant is also a deciding factor in this matter.

Loan Amount on the basis of Property Value and Cost:

• The amount of loan to be sanctioned can be equal to 100%of the actual cost of repairs, renovations or alterations.
• The maximum loan amount can reach up to 25%of the realizable value of the property as per the latest valuation report. The report, however, should not be older than 3
• However, the lower of above two amounts will be considered for the purpose of sanctioning the loan.

Amount of Loan on the basis of Income:

• The bank also provides the facility of adding the incomes of applicant’s close relatives such as spouse, son, daughter, brothers or sisters in order to increase the repayment capacity of applicant.
• However, in the case of proprietary concerns, partnership firms and self-employed professionals, the cash accruals of the entity will be considered as total income of an applicant.

Amount of Loan on the basis of Area of Residence:

• Even though no maximum amount of loan limit is set upon the loans applied by applicants residing in Metros and Urban Cities, limit of Rs.10 lakhs is set for applicants applying for Bank of Maharashtra housing loan from rural and semi urban areas. It means that an applicant from rural and semi urban area cannot apply for a loan amount higher than Rs. 10 lakhs.

Repayment Tenure

• Loans offered by Bank of Maharashtra have a maximum repayment period of 30 years, i.e. an applicant has to pay off the entire loan within a maximum period of 30 years.

The maximum repayment period depends on the retirement age of applicant at the time of maturity of loan i.e. the repayment tenure added to applicant’s age should not cross the retirement age of applicant at the time of maturity of loan. The age of applicant at the time of maturity of loan cannot exceed 75 years.

Non-salaried non-professional can apply for repayment period to a maximum of 65 years of his/her age, whereas, a salaried self-employed professional like doctors, architects and CA’s can apply for a maximum repayment period to a maximum of 60 years of his age.

Fees and Service Charges

However, the total deductions in the form of applicant’s liabilities towards payments, existing loan instalments and EMI of the proposed loan should not exceed 60% of the gross income, i.e. the net home take pay of applicant minus all the applicable deductions should not be less than 40% of an applicant’s gross income.

• The bank levies processing charges of 1% of the loan amount for issuing home loans.
• The bank also levies certain charges against documentation for purpose of acquiring the loan. These charges stand at 10% of the sanctioned loan amount, subject to a maximum of Rs.10000.
• Pre-Payment Charges: The bank does allow foreclosure of the loan within a period of 12 months from the date of disbursement of the loan. Post that, if the applicant chooses to foreclose his/her loan, he/she can do so by paying a minimal charge of 50% on the principal outstanding amount.

b) MahaSuper Housing Loan

For the Purchase of Plot and Construction

• Features:
• This loan is extended to individuals wishing to purchase a plot or land for construction of houses or flats. However, the construction of flat or houses should be started within a period of 3 years of having availed the loan.
• This loan can be availed by salaried professionals with a minimum job experience of 1 year in his/her current organization. The applicant must be a permanent and confirmed employee of the organization. Temporary employees or interns are not applicable for this loan.
• This loan can also be availed by Self-employed professionals and businessmen as dictated by the Bank of Maharashtra home loan eligibility criteria of the bank
• This loan is also extended to pensioners, holding a pension account with the bank and having a steady and good source of income.
• An applicant whether salaried, self-employed non-professional or a self-employed professional can apply for a loan from the bank only after reaching 21 years of age, i.e. an applicant below the age of 21 years is not deemed eligible for taking a loan.
• The bank requires a minimum margin of 30% on the registered value of the plot for the purpose of extending this loan.
• The bank requires a collateral security in the form of equitable or registered mortgage of the plot and house construction, thereon.
• The total deductions in the form of applicant’s liabilities towards payments, existing loan instalmentsand Bank of Maharashtra home loan EMI should not exceed 60% of the gross income, i.e. net home take pay of an applicant minus all the applicable deductions should not be less than 40% of applicant’s gross income.
• The cost of the plot should not exceed 75%of the total cost of the housing unit.
• Standalone plots will not be financed by the bank.
• Amount of Loan is decided on the basis of Area of Residence of the applicant. Even though no maximum amount of loan limit is set upon the loans applied by for applicants residing in Metros and Urban Cities, A limit of 15 lakhs is set for applicants applying for a loan from rural areas and a limit of Rs. 25 lakhs for applicants applying from semi-urban areas.
• The amount of Bank of Maharashtra home loans sanctioned is also based upon the annual income of the applicant. The maximum amount of loan varies depending upon the business profile of applicant.
• A salaried professional is eligible for a loan amounting to 60 timesof his/her gross monthly salary or 75 times of his/her net monthly salary, whichever is higher.
• A non-salaried professional or a businessman is eligible for a loan amounting to 5 times of his last two years average income as per his audited financials.
• An applicant may however, avail a loan amounting to 70% of the cost of the plot.

Repayment Tenure:

The bank allows a maximum repayment period of 30 years, i.e. the applicant has to pay off the entire loan within a maximum period of 30 years. The bank does not allow for any moratorium period.

• The maximum repayment period depends on the retirement age of the applicant at the time of maturity of the loan i.e. the repayment tenure added to an applicant’s age should not cross the retirement age of applicant at the time of maturity of the loan. The age of an applicant at the time of maturity of the loan cannot exceed 75 years.
• Even though the maximum age of a salaried employee for repayment of the loan is kept at 65 years,the same can be extended up to 75 years, subject to the condition that the applicant has a steady source of income post retirement.
• Repayment of the loan through regular EMI’s has to be done immediately after completion of one month of purchase of the land.
• An applicant, if wishes to choose a repayment tenure lying between 20 to 30 years, then he will be liable for an extra charge of 25%above the normal Bank of Maharashtra home loan interest rate.
• The repayment tenure also depends on purpose of loan.
• For loans availed towards construction of acquiring a new flat or house, the maximum repayment tenure is set at 30 yearsor the borrower’s age limit of 75 years, whichever is earlier.
• For loans availed towards purchase of old houses or flats (not older than 30 years), the maximum repayment period is set at 30 years or the borrower’s age limit of 75 years, whichever is earlier.
• For loans availed towards extensions of existing houses/flats, the maximum loan tenure is set at 15 years, or the remaining period of the existing house loan, whichever is earlier.

Service Fee and Charges:

• The bank does not levy any kind of processing charges for issuing Bank of Maharashtra housing loans.
• However, the bank levies certain charges against documentation for the purpose of acquiring the loan. These charges stand at 10%of the sanctioned loan amount, subject to a maximum of Rs.10000.
• Pre-Payment Charges: Nil.

When applicable under the normal Bank of Maharashtra home loan schemes, other charges will be levied by the bank.

c) Mahabank Top-up Loan

This loan is available to Bank of Maharashtra home loan borrowers of the bank and they can use the loan funds for carrying out repairs, renovations, furnishings or extension of their home for which the Bank of Maharashtra home loan was takes. The loan’s features are:

• The loan is issued in the form of a term loan only to the existing Bank of Maharashtra home loan borrowers
• Existing Bank of Maharashtra home loan borrowers can avail a loan which would be lower of 100%costs of the repairs, renovations or extensions carried out on the house or the overall LTV of the house not exceeding 75%.
• For Bank of Maharashtra home loan transfer applicants who are seeking a top-up loan, the value would be the lower of the LTV not exceeding 75% as per the valuation report prepared before a maximum of 3 months or 100%of the estimated cost of the repairs done
• The bank does not retain any margin in this loan scheme
• The loan is to be repaid either within 15 years or within the remaining loan tenure of the Bank of Maharashtra home loans whichever is earlier
• The loan processing fee payable for availing the loan is 50%of the loan amount sanctioned
• In addition to the loan processing fee, a documentation fee is also payable under the home loan scheme. This fee is 10% of the loan amount sanctioned subject to a maximum fee of Rs.10, 000
• Prepayment of the loan or foreclosing the loan is not possible before completing one year of availing the loan. After that period, prepayment of the loan is allowed but it attracts a charge. A fee of 50%of the outstanding loan amount would have to be paid for prepaying the loan.
• Nil foreclosure charges within one year.
• A security would be required to avail the loan. The security would be in the form of an additional mortgage charge on the existing property which has been mortgaged to the bank for availing the home loan. In case of a home loan transfer, an additional mortgage of the property would be required.

Customers can apply for the loan online with paisabazaar.com which provides all the related solutions for home loan application for the Bank of Maharashtra Home Loans. The applicant is supposed to fill up the required fields and provide his/her details to successfully complete his/her online application after which the loan shall get sanctioned by the Bank of Maharashtra.