Construction Finance to Builders
Finance can be availed by Builders immediately & effortlessly through the OCHFL..
Amount of loan
Builder/ Developer can avail a Home Loan of up to Rs. 90, 00,000/. However the Loan to Cost Ratio (LCR) should not be more than 75% of the estimated cost of construction.
The security cover :
On the first disbursement security cover should be 1.5 times the loan amount.
The Builder will serve the Simple Interest till initial period, plus bullet repayment of principal as per the sanction conditions.
The Builder will have to take No Objection Certificate (NOC) for Sale of each unit to be sold by him to the prospective purchaser, by payment of principle amount as per sanction letter.
In case the units are not sold or if the loan with the interest is not served by the builder, within the terms of the loan , then OCHFL will have the right to sell the units at discounted rate as per sanction letter.
The actual loan amount & ROI is determined taking into account factors like:
- Repayment capacity
- Educational qualifications
- Stability and continuity of income
- Number of dependents
- Co-applicant's income
- Saving Habits etc.
Loan tenure & EMI
The tenure of the Construction Finance to the Builder would be generally up to the project completion time. However the maximum term of loan should not exceed 36 months. The term is subject to maximum age criteria of 75 years.
Fixed Prime Lending Rate (FPLR) - 15%. Applicable ROI: FPLR+3 % i.e. 18 %