Home Loan

Common features of Home Loan

• Competitive interest rate.
• Flexible loan tenure.
• Quick and transparent loan processing
• Counseling to help better financing by our Relationship Managers throughout the process
• Equated Monthly Installment (EMI) payment solution

Home Loan Eligibility Criteria 

• Age: Minimum 21 years to maximum 65 years (at the time of maturity of loan tenure)
• The plot should be far away from the high-tension line.
• Third-party collateral, other than the property of the borrower or borrower's undivided family, will not be acceptable
• Salaried individual - Should be in permanent service.
• EMI should not be more than 60% of *disposable monthly income of the borrower along with that of the spouse/ other members of the family..
• Self-employed individual

Documents Required for Home Loan

Identification

• Photocopy of Citizenship certificate of applicant and guarantor.
• 2 Passport-size photos of the applicant.
• PAN Certificate of the individual (if required)
• PAN Certificate (if required)
• Firm/Company Registration Certificate (if applicable)
• PAN/VAT Certificate (If applicable)
• Article of Association (AOA) and Memorandum of Association (MOA) (if applicable)
• Partnership Deed (if applicable)
• Marriage Certificate (if applicable)
• Bank (deposit & loan) account at least 6 months statement

Security/Collateral

• Char Killa Pramanit
• Malpot Receipt
• Approved house map
• Blue Print and trace map
• Ghar Kayam in Lalpurja in case of existence of house
• Nirman Sampanna Patra/Abhilekhikaran
• Tax clearance of building

Income Source

• Salary certificate (latest Certificate)
• Pension Certificate (Patta)
• Photocopy of Rent Contract if any.
• Photocopy of audited/management prepared Financial Statements.
• Latest tax paid receipt or tax clearance certificate for all income (wherever applicable)
• Salary certificate, work permit, valid passport with visa, pay slip, and bank account statement (If income is from foreign employment)
• Copy of renewed/valid blue book of the vehicle along with route permit (If income is from the commercial vehicle)

Other Documents

• Copy of land ownership certificate (Lalpurja).
• Other documents stipulated by the Bank from time to time.
• Original latest land revenue receipt (Malpot Receipt).
• Copy of blueprint of building approved from Municipality/ Rural Municipality (Naksha Pass).
• Copy of land Transfer Deed (Rajinama).
• Original four Boundary Disclosure (Char Killa Pramanit) from ward office
• Original quotation of housing company, if being bought from housing company.
• Name of the family members with age.
• In the case of Purchase of a loan, loan statements from other banks and financial institutions.
• Copy of detailed breakdown of cost estimation from the applicant’s consultant.
• Approval letter of a municipality for extension and renovation/modification (if needed) of house.
• Loan application forms are duly filled and signed in the standard format of Bank

Home Loan Common Fees & Charges

• Processing Fees: This is a one-time fee charged by the bank for processing your home loan application. It covers the administrative costs of evaluating your application and conducting background checks.
• Legal and Technical Verification Fees: Before approving a home loan, banks typically conduct legal and technical verification of the property's documents. The costs associated with these verifications are often borne by the borrower.
• Valuation Charges: Banks assess the market value of the property before approving the loan. The cost of property valuation is usually paid by the borrower and covers the fees of the valuator.
• Prepayment Charges: If you decide to repay the loan before the end of its tenure, banks might charge a prepayment penalty. Some banks allow prepayment without charges, while others impose fees if the loan is prepaid within a specific period.
• Late Payment Fees: If you miss an equated monthly installment (EMI) payment, the bank can impose a late payment fee.
• Stamp Duty and Registration Charges: These charges are applicable when the property is transferred in your name and are not directly charged by the bank. However, they are essential expenses to consider when calculating the overall cost of the home purchase.

Common use of Home loans in Nepal 

• Purchase of residential plots (land) and to construct residential buildings.
• Purchase of Individual houses / Residential apartments.
• Purchase of Bungalow / Apartment constructed by builders/ developers.
• Refinancing of already built residential land and building.
• Renovation, modification, and extension of existing building.

Home Loan Do's and Don't Table