Shrama Udana - HDFC Bank

	Guidelines for Housing Loan Applicants from the Housing Development Finance Corporation Bank of Sri Lanka
	Date of issue May 01, 2005
	Guidelines for Housing Loan Applicants from Housing Development Finance Corporation Bank of Sri Lanka on the Security of EPF Accounts. The Housing Development Finance Corporation Bank is an institution under the Ministry of Housing & Construction Industries Eastern Province Education & Irrigation Development for the granting of housing loans to low income families on concessionary terms. Making loans available expeditiously and effectively under this scheme launched by the government on the security of EPF accounts, is a very special task entrusted to the Bank. Those entitled to obtain loans are : Individuals , and / or Joint Members ( Husband/ wife) of the EPF with a sufficient balance in the EPF account. Repayment period: The maximum repayment period will be 15 years from the receipt of the loan or attaining the age of retirement, whichever is earlier Payment to be made in respect of loans : Preliminary Savings Deposit of Rs.500/- Loan processing Fee (½ % of the amount of loan ) subject to a maximum of Rs. 2000/-) Fee to be credited to the Labour office Rs. 500/- Purpose for which a loan is granted : To build a house To purchase a house To buy a plot of land on which to build a house. To build a part of house or add a new part to existing house. To obtain well water/ water supply facilities and electricity and sanitary facilities. To settle a loan already obtained for a housing purpose from a Government or approved financial institution. Security for loan The security for the loan will be the applicant's own EPF balance. Basis for granting the loan Current contributors to the EPF can obtain 75% of the balance remaining to their credit in the EPF. Repayment potential A maximum of 40% of salary subject to a percentage to be decided by the bank as regards other income, proof of which is available. Loan applications : Applicants for loans with the EPF balance as security shoul obtain the relevant application form from the Labour office within whose jurisdiction the property to be utilize for a housing object is situated, and forward the application together with the relevant documents through the Labour office referred to above, addressed to the Housing Development Finance Corporation Bank. Documents to be submitted with the application : 10.1 For house purchase loans : Copy of the title deed of owner Copy of the survey plan Letter of consent by the seller to sell the property at the price offered. 10.2 For construction loans : Copy of the title deed Copy of the survey plan Approved building plan (not essential in case of repairs to house) Estimate for the construction of the building (bill of quantities BOQ) 10.3 For redemption Loans : Copy of the title deed Copy of the survey plan Copy of Mortgage deed Letter stating particulars regarding the loan from the institution holding the mortgage. 10.4 Other documents - Salary particulars or certificate of income and supporting documents 10.5 Other documents to be submitted to the HDFC Bank in addition to those to be submitted to the Labour office Employment and salary particulars on HDFC Form 28 Birth Certificate with copy National Identity Card and copy Marriage certificate with copy (for joint applications only) For house purchase loans in addition, a letter of undertaking from the seller (on forms available from HDFC Bank) Copy of seller's National Identity Card. Release of loan : For construction of houses will be in installments and on the recommendation of the Labour office , For purchase of properties the loan will be released outright. Obtaining of Group Loan Protection Insurance Cover ( Not an essential requirement.) Only one premium needs to be paid in this respect. This provides for settling of the loan from insurance in case of death of the borrower and for refunding the EPF balance to the dependents [in this instance the loan installments should have been paid regularly] Repayment The annual installment payable at the prevailing rate of interest by equal monthly installments on the diminishing balance over the period of the loan. Note: In case you need additional information or clarification please see our customer service officers or branch managers. We are committed to giving you the best services in housing finance.

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