Cent Home Loan for Employees
Table of Contents
Central Bank of India offers the Cent Home Loan for Employees for the construction/purchase of a new or existing house/apartment. The loan can also be used for extensions in an existing house/flat as well as for renovations, repair or alteration to an existing house/apartment.
The loan can be taken for a maximum of 30 years at floating interest rates, or the borrower reaching 70 years of age and all permanent Central Bank of India employees are eligible. The processing fee of 0.50% of the loan amount would be waived for applicants with a Central Bank of India salary account.
Interest Rates
As per a recent announcement, home loans issued will have a floating interest rate that is pegged to the RLLR. For new borrowers, the interest rate of Cent Corp Emp Home Loan up to Rs.25 lakh as well as above Rs.25 lakh ranges between 6.85% p.a. and 7.30% p.a. For existing borrowers, the interest rate offered by Cent Corp Emp Home Loan up to Rs.25 lakh and above Rs.25 lakh ranges between 6.85% p.a. and 7.05% p.a.
Features and Benefits
The features and benefits offered are as follows:
- The loan can be used for the following purposes:
- To buy a plot with the intention of constructing a house within 2 years of taking the loan.
- To make extensions in an existing house/apartment.
- To make repairs or renovate an existing house/apartment.
- To construct a new house/apartment or buy an existing house/apartment not older than 30 years.
- No prepayment charges will be levied on floating rate home loans.
- Repayment can be done over a period of 30 years.
- You can transfer an existing home loan from another bank to Central Bank of India.
- No guarantee is required for this loan.
Margin: The margin on the loan would depend on the loan amount and the purpose behind applying for the loan. The margins payable are as listed below:
For loan amounts up to Rs.20 lakh
Purpose | Margin payable |
Construction/purchase of a new house/apartment or extensions to an existing one | 10% |
Repairs/renovation/alteration to an existing house or to purchase a plot of land | 25% |
For loan amounts between Rs.20 lakh and up to Rs.75 lakh
Purpose | Margin payable |
Construction/purchase of a new house/apartment or extensions to an existing one | 20% |
Repairs/renovation/alteration to an existing house or to purchase a plot of land | 25% |
For loan amounts above Rs.75 lakh
Purpose | Margin payable |
Construction/purchase of a new house/apartment or extensions to an existing one | 25% |
Repairs/renovation/alteration to an existing house or to purchase a plot of land | 25% |
Eligibility Criteria
All permanent employees of state and central governments as well as government Public Sector Undertaking employees are eligible for this loan.
Documents Required
There are certain documents that have to be submitted along with your Cent Home Loan for Employees loan application. You may be asked to submit any or all of the following:
- Salary certificate/salary slip, or any other income proof document.
- Latest Form 16/IT Return/IT Assessment Order.
- Valuation Certificate from an approved valuer.
- Approved construction plan.
- An engineer's or architect's certificate verifying the cost for construction, repair, improvements, or extensions.
- For purchase of a house - An architect's certificate confirming the age of the house/flat
- Original Title Deed photocopy of the flat/house/plot including all sale/transfer transactions till date. Other documents related to the Title Deed to be submitted.
- Agreement of Sale.
- Agreement of construction with the developer or builder.
- A No Objection Certificate (NOC) from the Housing Society.
- An affidavit-cum-undertaking confirming that the construction will be done in an authorised area and will occur as per the sanctioned by-laws of the building/plan, and that the loan is being acquired for purchasing a house/flat/plot for residential purpose only.
FAQs on Cent Home Loan for Employees
- What is the security to be offered for this loan?
The registered mortgage of the property can be offered as security. If this is not possible, bonds/stocks/fixed deposits equal to 125% of the loan amount can be offered.
- What is the processing charge applicable?
The processing charge is 0.50% of the loan amount, with the maximum amount being Rs.20,000.
- I want to buy a flat that is 12 years old. Can I apply for this loan?
No, the loan can be used to buy flats/houses that are less than 10 years old only.
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