Union Top-up Scheme ELIGIBILITY Existing home loan borrowers (Standard Assets with regular EMI repayment) who Are salaried/professional & self employed, agriculturists or business men having regular source of Income. Have repaid minimum 24 EMIs in Home loan account and Where net take home pay/monthly income is not be less than 35% of gross monthly income/earnings after considering all deductions including the EMI of the proposed TOP-up Loan. PURPOSE To meet any type of expenditure in respect of the House viz. repairs/renovation/ remodeling / furnishing etc. NATURE OF FACILITY Term Loan (Floating) QUANTUM The maximum amount of loan can be extended upto 50% of EMIs repaid subject to minimum of Rs.50,000/- to Maximum of Rs.5,00,000/- RATE OF INTEREST (w.e.f. 01.07.2010) (Base Rate) Union Top-Up (Original Housing Loan Limit upto Rs.30 lacs) (Original Housing Loan Limit Above Rs.30 lacs) Term Loan Base Rate+ 1.75% i.e. 9.75% (Floating) Base Rate +2.25% i.e. 10.25% (Floating) MARGIN 50% [i.e. only 50% of the amount already repaid will be considered as top-up loan subject to maximum cap]. PROCESSING CHARGES 0.50% of the Top-up Loan amount. SECURITY Existing Mortgaged House will continue as security (the house for which housing loan is extended and is secured by EM.). GUARANTEE Guarantee is applicable wherever guarantee is taken in the existing Home Loan. REPAYMENT The maximum repayment period is of 5 years or left over period for the borrower before he attains retirement or 60 years of age which ever is earlier. Term loan is subject to review every year. TAX BENEFITS Accrued interest on Top-up loan is eligible for exemption under section 24 of Income Tax Act, provided the loan is granted for the purposes of renovation, additions, repairs or reconstructions of house property. However, if the loan is granted for furnishing of house, such exemption is not available. (The Installments towards repayment of Principal is not eligible for exemption under Income Tax).
Union Top-up Scheme
Existing home loan borrowers (Standard Assets with regular EMI repayment) who
Are salaried/professional & self employed, agriculturists or business men having regular source of Income.
Have repaid minimum 24 EMIs in Home loan account and
Where net take home pay/monthly income is not be less than 35% of gross monthly income/earnings after considering all deductions including the EMI of the proposed TOP-up Loan.
To meet any type of expenditure in respect of the House viz. repairs/renovation/ remodeling / furnishing etc.
Term Loan (Floating)
RATE OF INTEREST (w.e.f. 01.07.2010) (Base Rate)
50% [i.e. only 50% of the amount already repaid will be considered as top-up loan subject to maximum cap].
0.50% of the Top-up Loan amount.
Existing Mortgaged House will continue as security (the house for which housing loan is extended and is secured by EM.).
Guarantee is applicable wherever guarantee is taken in the existing Home Loan.
Accrued interest on Top-up loan is eligible for exemption under section 24 of Income Tax Act, provided the loan is granted for the purposes of renovation, additions, repairs or reconstructions of house property. However, if the loan is granted for furnishing of house, such exemption is not available. (The Installments towards repayment of Principal is not eligible for exemption under Income Tax).
