Discover for yourself, why GIC Housing Finance (GICHF) is the friendliest housing finance company. GICHF's apna ghar yojana (own your home scheme) disburses loans to construct or buy a new house or flat, to buy an existing house not more than 25 years old or a flat not more than 15 years old and to extend an existing house or flat.

Who can apply for the loan?
You must be in permanent service or engaged in a profession or business with a regular income.

What is the loan amount?
The loan amount will be determined on the basis of your income and other factors such as your age, qualifications, number of dependents, stability and continuity of income ..
Minimum loan amount: Rs 20,000 per unit.
Maximum loan amount: Rs 30,000 per unit.
The maximum loan amount will be restricted to 80 per cent of the cost of the property, including stamp duty and registration charges.

What is the loan period?
It is normally 5 to 20 years but it will not exceed the age of retirement or completion of 65 years (whichever is earlier).

What is the rate of interest?
On a loan amount upto Rs 25, 000 the interest rate is 11.75 percent per annum and on an amount between Rs 25,001 and Rs 30,00,000 the interest rate is 13.25 percent per annum.

What are the repayment terms?
Loans will be repayable in Equated Monthly Installments (EMI) comprising principal and interest, calculated on a monthly reducing balance method. Until the loan is fully disbursed, pre EMI interest (PEMI) is payable only on the portion of the loan availed as on the last day of every month.
The monthly installment (principal interest) depends on the quantum of the loan, interest rate applicable and the term of the loan. A sample of various EMIs corresponding to different terms is:
Terms of a loan of Rs 10,000 on an interest rate of 11.75 per cent and 13.25 per cent, for 5 years is 221.18 and 228.81, respectively. Similarly for 10 years and 15 years it is 142.03 and 150.78, and 118.41 and 128.17, respectively.

Salient Features of GIC-HF Loan
* Interest calculated on monthly reducing balance method. Accordingly, the quoted rates are the effective rates.
* Free accidential death insurance cover to all the borrowers to the extent of loan outstanding as per policy conditions.
* No charges for part pre payment of loan.
* No charges for foreclosure of loans.
* Above all, flexibility in various parameters to suit individuals requirements.

What is the security for the loan?
The security for the loan is the first mortgage of the property to be financed by way of deposit of title deeds, subject to local news. Further you will be required to provide a guarantee from one or two individuals acceptable to GIC-HF.
Collateral security required on case-to-case basis in the form of assignment of LIC policy or pledge of units of GIC mutual fund or Unit Trust of India or National Saving Certificate (VIII issue).

When will the loan be disbursed?
On submission of an application in the prescribed form (available at the service centres) along with the following documents.
1. A true copy of the building plan sanctioned by the local authority and certified by a qualified architect or civil engineer.
2. Employer's certificate in the prescribed proforma, for both you and your guarantors , or certified copies of your income tax returns or assessment orders with statements of income for the last 3 years if you are self employed.
3. An attested copy of the title deeds along with latest detailed title investigation report, mentioning the proof or abstract of title in chain for a minimum period of 15 years.
4. An allotment letter from Housing Board, Development Authority, Housing Co-operative Society along with no objection letter for creating mortage in favour of GIC-HF.
5. Detailed item wise estimate about the cost of construction, from a qualified architect , in case of construction of a house.
The loan will be disbursed after a full technical apprasial has been made by GIC.

Any fee to be paid?
a) A non-refundable processing fee of 0.3 percent for loans upto Rs 2 lakh and 0.8 percent for loans above Rs 2 lakh (subject to a minimum of Rs 250) payable along with the application form.
b) Administrative fees @ 1 percent of loan-(subject to a minimum of Rs 250) is payable at the time of acceptance of the offer letter.The fees in respect of (a) and (b) above are on time and non-refundable and collected at each stage as specified above.
c) Commitment fee @ 1 per annum on the undrawn amount of the loan, commencing nine months from the date of acceptance of the loan till the same is fully availed of.

Is insurance needed?
The property will have to be fully insured against the risks of fire and other allied perils, with any subsidiary of GIC (jointly in GIC-HF and the borrower's and renewed in time every year.)

Any tax benefits?
1) Rebate under section 88 of Income Tax Act 1961 for repayment of loan upto Rs 10,000 in a financial year towards principal.
2) Deduction under section 24 (i) (vi) of Income Tax Act 1961 for interest payment on housing loan upto Rs 75,000 in a financial year.

When can the application be made?
You can apply immediately once you decide to purchase or construct a dwelling unit. You can also apply even before you have entered into an agreement with the builder or seller.

Where does the scheme operate?
Presently, GIC-HF has service centres operating in Bangalore, Calcutta, Chennai, Coimbatore, Hyderabad, Kochi, Lucknow, Mumbai, Navi Mumbai, New Delhi, Panaji, Pune, Thiruvananthapuram, Vihaskhapatnam. Loans will be available within municipal or urban limits of the service centres listed.

Where can you get application forms or guidance about the loan?
Contact any of the service centres. They will be happy to assist you and give the necessary forms and guidance.

Service Centres of GIC Housing Finance Limited:

MUMBAI:
GIC Housing Finance Limited,
6 th floor, Sambava Chambers,
20,Sir P M Road, Fort, Mumbai-400 001
Telephone: 2663411/2678281/2695631

NAVI MUMBAI:
C/o The New India Assurance Company Limited,
Vindhya Commercial Complex, 2 nd Floor,
Sector-11, CBD Belapur, Navi Mumbai-400 614.
Telephone: 7574617/7573361.

By :Mani D'Mello

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