Ithurum Niwasa - NSB

What is special about the 'Ithurum Nivasa' Housing Loan Savings Scheme?

When you wish to purchase land, renovate your house, build a house or buy one, you approach a bank to obtain a housing loan.

Then come the usual questions:

• "Are you permanently employed?"
• "Where is your pay sheet?"
• "Do you have an income tax file?"

You won't have to answer such questions when you apply for a housing loan from NSB, under our Ithurum Nivasa Housing Loan Savings Scheme. To be eligible for a housing loan all you need to have is a monthly income. You should then open an "Ithurum Nivasa Housing Loan Savings Account" at any NSB branch, with a monthly deposit of Rs. 1,000/- to Rs. 12,000/-. After continuing your monthly deposit for a period of 12 months you could apply for a housing loan. Repayment will be in monthly instalments equivalent to the amount of your monthly deposit. For example, if your monthly deposit is Rs. 1,000/- and you maintain it continuously for 12 months, you will be eligible for a loan of Rs. 90,000/-, repayable in monthly instalments of Rs. 1,000/-.

What is special about the 'Ithurum Nivasa' Housing Loan Savings Scheme?
It is special because applicants do not have to submit salary slips or income tax returns in evidence of their income. They should however, have a monthly income.

Who can obtain Housing Loans?
Sri Lankans between 18 and 55 years of age with a monthly or seasonal income are eligible to obtain loans under this scheme.

How do I qualify for a loan?

You can qualify for a Housing Loan by opening an 'Ithurum Nivasa' Housing Loan Savings Account in the Credit Division at Head Office or at any of our branches situated island-wide and making a monthly deposit of a sum between Rs. 1000/- and Rs. I 2,000/- in multiples of Rs. 500/- for a continuous period of 12 months.

What is the quantum of loan I can obtain?

You could obtain a loan from Rs. 90,000/- to a maximum of Rs. 1,000,000/- either to construct or purchase a house of your own, to complete construction of a new house or for extensions/repairs to an existing house, to repay a loan obtained from a recognised financial institution for housing purposes or to purchase a block of land to build a house.

Conditions governing 'Ithurum Nivasa' Housing Loan Savings Scheme

• A depositor who wishes to obtain a housing loan under this scheme should be able to offer a suitable property as security against his/her loan. The house to be constructed or the land to be purchased with the loan should be mortgaged to the Bank.
• The loan will be granted against the primary mortgage of the property offered as security.
  The annual interest payable on 'Ithurum Nivasa' Housing Loan Savings Accounts is the same as the rate of interest payable on ordinary savings accounts.
• You will not be permitted to make withdrawals from your 'Ithurum Nivasa' Housing Loan Savings Account until such time as you have paid back the loan in full. However, if you are in a position to pay back your loan in full, you will be permitted to set-off the proceeds of your 'Ithurum Nivasa' Housing Loan Savings Account against your housing loan.
• After obtaining the loan, you will be required to hand over your pass book to the Bank. You will also be requested to furnish a Letter of Set-off bearing your signature, permitting the Bank to set-off your 'Ithurum Nivasa' Housing Loan Savings Account balance against your loan account in case of default.
• Prospective loan applicants should obtain their loans within one year from the date of completion of the contractual period of the 'Ithurum Nivasa' Housing Loan Savings Account.
  After one year, the 'Ithurum Nivasa' Housing Loan Savings Account will be converted to a Fixed Deposit account paying annual interest.
• A loan applicant can open a joint 'Ithurum Nivasa' Housing Loan Savings Account with his/her spouse or a close relative at the Bank's discretion. In such instances, the loan account should be in the names of all the joint account holders.
• The maximum period within which a loan should be repaid is 30 years and the maximum age limit is 65 years.
• The quantum of the loan will be 60% of the valuation if it's for purchase of land and 75% of the estimated cost if it is for construction. We could consider granting you the entire estimated amount subject to the above conditions.
  
  This loan scheme is subject to the conditions in force at present and which may come into effect in the future from time to time.
  

Special facilities you will enjoy

By the time you finish paying back your loan, the balance in your 'Ithurum Nivasa' Housing Loan Savings Account will be much more than the loan you obtained.
The Bank does not levy Service Charges on these loans.

Rates of Interest
The rates of interest applicable to this loan scheme are .the same as the rates applicable to Ge-Dora Housing Loans.

How can I obtain further details in this regard?
Further details could be obtained from the Credit Manager at Head Office, National Savings Bank, Colombo 3 or the Manager of the closest Branch of the National Savings Bank.

Further details in this regard could be obtained from the Credit Division at the Head Office or any Branch of the National Savings Bank.

Credit Manager
National Savings Bank
Credit Division
Colombo 3.

Tel.Nos. Credit Manager: 011-2573180 –2575371, 011 2375259, 011-2573008-15
Hotline:2574574, 2375260
Fax: 011-2573510, 5332439
E-mail: manager.credit@slt.l

Source: http://www.nsb.lk/PB_Ithurum_Niwasa.asp