Scheme for financing for the construction of building for industrial units on the plots allotted by DSIDC under Relocation scheme of Delhi Government

I.    Borrower & Eligibility

1.         The applicant should be enrolled as Regular member of the Bank.  He should posses good health;

2.         The loan will be given only to the Prop. firms/Individuals/Partner ship firms in whose name plot originally has been allotted by DSIDC under the Relocation Scheme.

3.         If the firm/Individuals  is our existing borrowing member it should have been regular in repayment of earlier loan.  However, cases of up to three overdue installments in the past may be considered.

4.         The firm should have minimum of 5 years of standing and should be submitting Income Tax Returns showing the computation of income to Income Tax authorities at least for the last three years in the Assessment years in which they are due showing consecutive profits during these three years.  No Income Tax Returns submitted in the subsequent assessment years will be entertained.

5.         In case of member who is availing this loan for the first time from our bank he should submit the previous loan account statements (if he availed the loan) for the entire period of loan and also current account statement for the last one year duly authenticated from the financing bank/institution.

II    Maximum Loan Amount & Margins

1.   The cost of construction will be taken as Rs.850/- per sq. feet for the plan approved by DSIDC, MCD   or any other applicable competent authority.

2.   The quantum of loan will be decided on the basis of size of plot allotted, repayment  capacity, IT Returns, property mortgaged etc.

3.   A margin of 25% of the cost of construction will be maintained.  The loan will be released in three stages after obtaining a certificate from Bank’s official/Architect regarding completion of the work as under:-

        a) 40% of the loan amount      -        1^st stage i.e. up to plinth level (DPC)

        b) 30% of the loan amount      -        2^nd stage i.e. up to First roof level

        c) 30% of the loan amount       -       3^rd stage i.e. after all roof levels

4.   The borrower should clear the earlier loan outstanding before the sanction of this loan. In case if he is not in a position to clear the previous loan the borrower should pay at least 50% of the loan outstanding & if not paid by him the loan amount will be given after deducting the 50% of loan amount outstanding in his name on the date of sanction of this fresh loan.

Details of loan amount, No. of installments, Rate of interest and E.M.I.

III   Security

1.         Bawana Industrial plot will be mortgaged. 

3.        All original papers related to the allotted plot will be taken.

4.        Two good surety having good I.T. Returns for the last three years may also be taken.

IV   Period of Loan, Repayment and Rate of Interest

1.         The loan will be repayable in 120 monthly installments after a repayment holiday period of 6 months from the date of disbursement of 1^st loan installment.  However, the monthly interest amount have to be paid by the borrower during this repayment holiday period of six months, after 6 months the usual EMI have to be paid.

2.         Rate of interest @ 12% p.a. with monthly rests be charged (on daily product basis) and penal interest in case of default as applicable also be charged.

 V   Insurance/Taxes and other charges etc.

1.         Borrower have to maintain the linkage of share holding @ 2.5% of loan amount;

2.         Processing Fee @ 0.50% of loan amount will be taken.

3.         Borrower will give an undertaking that he will submit to the bank the copy of the payment of yearly insurance of building/taxes/ground rent etc. and the cost of the same be born by the borrower.

4.         In case of cheque return except for remarks for which borrower is not liable Rs.125/- be charged for per instrument return.

5.         No pre-payment charges.

VI.    Documents

Note: Sanctioning of loans is at the sole discretion of the Bank