Calculation quantum advance

1 Individuals-Salaried Employees /Self
48 times of average net emoluments (take home salary) based on salary slip/Form 16/Income Tax Return OR 4 times of net annual income with other rental income from property etc. based on I.T returns for last 2/3 Financial Years .
2 Doctor/s- in case of joint accounts all to
be doctors
4 times of average net annual income of last 2/3 years based on IT Returns for last 2/3 Financial Years
3. Others i.e. Proprietorship/ Partnership
Firm/Company etc.
  • For Loans / Reducible Overdraft: 4 times of average net annual income of last 2/3 years based on IT Returns for last 2/3 Financial Years.
  • for Overdraft (Non Reducible): 20% of annual turnover based on last (F.Y) audited balance sheet of the proponent. Audited Balance sheet to be obtained for last 2/3 Years.-based on its number of years existence.

Margin (on value of property)

  • Nil Margin for loan limit provided on the basis of Circle Rate/Registration value of the property (100% Loan amount); 
  • 60 % of Market value (40 % Loan amount); 
  • 50% of Distress Sale Value (50% Loan amount); whichever is lowest of i, ii & iii.

*Value of property for calculation of quantum of advance/determining margin will be lowest of Market value, Distress Sale value and Registration of value of property/similar property as on date of valuation.

Requirement of net take home pay /dscr- for loans :

  • For individuals:
Gross Monthly Income % of NTHP
Upto Rs.1.00 lacs 40 %
Rs. 1.00 lacs & above upto Rs.5.00 lacs 30 %
Above Rs.5.00 lacs 25%
  • For Prop. Firm/Partnership Firm/Company(Loan /Reducible OD) : DSCR: Min.1.5;
  • For Overdraft facility(Non-reducible ) : ISCR Min.1.5

Rate of interest

Particulars Rate of interest
(i) Loan/ Overdraft Reducible
(Monthly Reducible Limit)
1 Year MCLR +2.00%

Repayment terms

For loans ( Repayable by EMI) >Max. 12 years by way of equated monthly installments (EMIs)
Overdraft : (Reducible Limit) >Drawing Limit to be reduced on monthly basis as per sanction terms to bring down the balance to zero at the end of repayment period. Total Repayment period of max. 12 years.
( Interest to be serviced on monthly basis)
Overdraft: (Non-reducible) >Interest to be serviced on monthly basis, as per sanction terms.

Loan/Overdraft (Reducible)


In case of individuals Loan/Overdraft (Reducible) to be closed within the age limit as prescribed.


  • Equitable / Legal mortgage charge over the property (including registration of equitable mortgage charge in applicable states & Registration of EQM charge with CERSAI in eligible accounts) ;
  • Obtaining personal guarantee of additional individual(s) at the discretion of the sanctioning authority.


  • The property to be mortgaged should be in the name of the applicant or his/her spouse or close relative as per Section 6 of Companies Act 1956 or persons representing relationship such as firm / proprietor, partnership / partners, company/ directors. The person / entity in whose name the property to be mortgaged to be either co-borrower or guarantor.
  • Agricultural land not accepted as security for loans/advances under this scheme; 
  • Property owned by Company /HUF/Society etc. cannot be mortgaged for loan availed by Directors/Karta or co-parceners /Office-Bearers.


All linked to Banks MCLR
BOI MCLR 8.70 % w.e.f. 10.12.2018
(All charges are Exclusive of GST)
(i) Loan/ Overdraft Reducible(Monthly Reducible Limit) 1 Year MCLR +2.00%
(ii) Overdraft (Non-Reducible) 1 Year MCLR + 2.50%

For Loan (Repayable by installments)

One time @ 1% of sanctioned loan amount Min. Rs.5,000/- and Max. Rs.50,000/-.

For Mortgage OD (Reducible)

0.50% of the Sanctioned limit min.Rs.5,000/- and Max. Rs.30,000/- for 1st year at the time of original sanction.
0.25% of the Reviewed limit min.Rs.2,500/- and Max. Rs.15,000/- for subsequent years.

For Mortgage OD (Not reducible )

0.50% of the Sanctioned/Reviewed limit
min.Rs.5,000/- and
Max. Rs.30,000/- on annual basis.

For Rural areas:

Processing charges will be 75% of those normal applicable charges in respect of loans availed by borrowers from rural areas from rural branches.




The property mortgaged should be kept insured for full value against the risks of fire, natural calamities, riots, civil commotion, earthquake, etc. with the usual bank clause (i.e. assigned to the Bank) during the period of advance.

Rating Exercise


The proponent will be eligible for loan subject to obtention of minimum marks or minimum entry level norm fixed by the bank