Consumer Banking
- Who is eligible for " NIC GHAR SUBIDHA " loan?
- Is this loan available for commercial purpose?
- What are the different schemes under this loan?
- What are the basic terms & conditions of NIC Ghar Subidha?
- What is the maximum or minimum limit of finance?
- Is there any age limit to apply for this loan?
- Is moratorium given under this loan?
- What is the tenure of loan?
- Which are the locations covered under this Subidha?
- Are properties located at VDCs considered for the scheme?
- Is motorable access required to the property?
- How is the valuation of property done?
- Is insurance mandatory for all kinds of loans?
- How much should be the income of the applicant?
- What is the repayment method?
- Can combined income of Joint-Applicants and or income of undivided family members be considered for calculation Uncommitted Monthly Income?
- Can joint applicants apply for this loan?
- Who are included as Members of Un-divided family?
- How much is the processing fee ?
- Is prepayment allowed to the account?
- Is prepayment charge waived after payment of certain EMI?
- Who will bear Valuation and Insurance costs?
1. Who is eligible for " NIC GHAR SUBIDHA " loan ?
Permanent salaried individuals with minimum 5 years in continued service.
Professionals (doctors, chartered accountants, architects)– at least 2 years in practice.
Self Employed businessmen - at least 2 years in business
Middle / Senior level manager
2. Is this loan available for commercial purpose?
No. NIC Ghar Subidha is offered for residential purpose only.
3. What are the different schemes under this loan?
The loan is available for:
- Purchase of land.
- Purchase of Readymade House
- Purchase of Apartment.
- Construction of House (Self constructed)
- Renovation/ extension of existing house
- Purchase of house built/being built by developers.
- Equity Finance against existing house/land.
- Refinancing of existing loans obtained from other banks/finance companies.
Land purchase
Up-to 80% of distress value (DV) as per the valuation of Bank’s authorized valuer. First right of refusal to the bank in case of financing construction of house in the same land.
Purchase of ready built house:
70% of fair market value (FMV) of total property as per the valuation report by authorized valuer of the bank. Purchase of apartment
80% of distress value (DV) of total property or 60% of cost price whichever is lower. Construction of house (self construction) Up-to 110% of cost of construction of house. Including up to 10% of construction cost for furniture, furnishing and household equipment.
Renovation / extension
Up-to 100% of cost.
Housing built/being built by developers
Up-to 70% of cost /purchase price or 70% of FMV, whichever is lower.
Equity Finance against existing house/land.
Up-to 80% of DV as per valuation report against land and /or ready built house up to 10 years old.
Refinance:
Up to outstanding loan amount with existing Financial Institution or 70% of FMV whichever is lower
5. What is the maximum or minimum limit of finance?
Maximum 15 million, minimum 0.5 million.
6. Is there any age limit to apply for this loan?
Minimum 25 years. Maximum 65 years on or before last EMI.
7. Is moratorium given under this loan?
In case of construction of house, moratorium period of up to 12 months or completion of construction, whichever is earlier, is provided. However, no moratorium period is for financing of Ready Built House/Land/Equity Finance.
8. What is the tenure of loan?
Minimum 2 years and maximum 20 years, including moratorium period.
9. Which are the locations covered under this Subidha?
Municipal boundary within KTM valley and within 5Km of municipality boundary.
Biratnagar within municipality and Dharan highway up to Duhabi within 500 meter of Highway.
Dharan Municipality
Itahari Municipality.
Birgunj Municipality and within 500 meters of Municipality.
Birtamod, Bhadrapur Municipality, Damak Municipality.
Dhulabari within 3 KM radius of main chowk.
Janakpur Municipality and 500 meters of municipality.
Pokhara Municipality and within 1 Km of municipality.
10. Are properties located at VDCs considered for the scheme?
Yes, see 9 above but subject to 2 lanes (6 meters) motorable road within 200 meter of the property and 3 meters motorable road attached to the property.
11. Is motorable access required to the property?
Yes, minimum 3 meters motorable access road to the property is pre-requisite.
12. How is the valuation of property done?
Valuation of the property is done by the valuers included in the approval list of valuers of the Bank.
13. Is insurance mandatory for all kinds of loans?
Insurance is mandatory in case of Ready built house/ apartment/ financed against ready built house equivalent to its authorize value determined by authorized valuator or amount of bank finance whichever is higher, covering all risks. Insurance is not required for land. Insurance is required after completion of plinth level construction in case of financing of construction of house.
14. How much should be the income of the applicant?
Net disposable or uncommitted income should be at least two times of EMI.
Net disposable/uncommitted income being defined as gross income less living cost, PF, tax, interest etc.
15. What is the repayment method?
Equated Monthly Installment (EMI). EMI shall start from 1 st day of Gregorian month immediately after completion of moratorium period pr completion of construction in case of financing of construction of house ad renovation. However, interest will be payable every month even during moratorium period. EMI shall start from 1 st day of Gregorian month, that comes after minimum 30 days and maximum of 45 days whichever is earlier from the date of disbursement in case of financing of ready built house, land and Equity Finance. Interest for broken period to be recovered in advance at the time of disbursement.
16. Can combined income of Joint-Applicants and or income of undivided family members be considered for calculation Uncommitted Monthly Income?
Yes, if undivided family members are joint applicant or have provided their personal guarantee.
17. Can joint applicants apply for this loan?
Joint applicants of maximum two people can apply for these loans. Only immediate family members (e.g. Father/mother/Brother/Sons/Daughter/husband/wife) of undivided joint family can be joint-applicants of the loan.
18. Who are included as Members of Un-divided family?
Father, mother, husband and or wife, son, unmarried daughter, daughter in law, step mother, adopted son, adopted un-married daughter, of undivided joint family may be included.
19. How much is the processing fee ?
1% of the financed amount payable upfront at the time of application which will be refunded if loan is not approved.
20. Is prepayment allowed to the account?
Pre-payment to the account is allowed on payment of pre-payment fee of 0.5% per quarter, or part thereof, of the amount prepaid, calculated from the date of scheduled repayment dates.
21. Is prepayment charge waived after payment of certain EMI?
Yes. No prepayment charge after repayment of 50% of EMIs as scheduled.
22. Who will bear Valuation and Insurance costs?
The borrower has to bear the valuation & insurance costs.