Amendments on the eligibility criteria for all the loan products.


Posted On   2020-03-24   |  announcement

The Credit Committee during 82nd sitting held on 18th March 2020, made the following amendments on the eligibility criteria for all the loan products. 

1. Housing Loan:

    1. LTI to be reduced from 100% to 80%
    2. 30% of land value consideration to be discontinued on the valuation
    3. New housing loan to be sanctioned based on the economy prospect of the location/area.
    4. If the housing loan concentration in a particular area is more than 20% of the total loan, new housing loan shall not be sanctioned for the particular area.

2. Home Loan

    1. 30% of land value consideration to be discontinued on the valuation.
    2. Loan repayment to be collected through Standing Instruction (SI) for all applicable income tied to the loan except those whose repayments are deducted at source. (For eg. If spouse salary is used for assessment , that particular income should be linked to SI)

3. Education Loan

    1. Loan up-to 500,000 can be guaranteed by third Party.
    2. Loan equivalent to PF balance can be backed by PF balance
    3. Exposure more than Nu. 500,000, if not backed by PF balance, has to be secured by fixed asset.
    4. Exposure will be on total exposure basis for a single client (education, member and student loans all combined)
    5. Limit loan tenure to remaining service period if the loan is not secured by equivalent PF balance.
    6. If the applicant/guarantor has NPA account, he/she will not be eligible for any loan or to be a guarantor as per RMA PR.

4. Member Loan

    1. Limit loan tenure to remaining service period or five years whichever is less.
    2. If the applicant/guarantor has NPA account, he/she will not be eligible for any loan/to be a guarantor as per RMA PR.

5. Student Loan

  1. To Release the balance loan amount if any, to the client after the visa has been granted.
  2. If the visa gets rejected, the loan has to be closed.

The above amendments shall come into effect from 24th March 2020.Issued for strict compliance and necessary action.