Notes NHFS Up to Cir. 25 2015 EMI Corrected

.Notes On NHFS

1

Notes on

New Housing Finance Scheme

[NHFS] [NHFS] With EMI ChartWith EMI Chart(Changes up to HO Cir. 25/2015 Dated 18/04/2015 included )

https://www.facebook.com/groups/ksfehelp/ 1 Notes On NHFS

.Notes On NHFS

2

The Company has operated two separate schemes for housing purpose. One is for house modernization[HMS] & the other for new construction[NHFS]. As per Cir. 101/2000 dated 16/06/2000 these two schemes were merged together in to a single scheme, namely NHFS. Initially the scheme was operated from our loan units only. As per Cir.13/2012 dated 29/03/2012 the scheme extends to all of our units.

This is a purpose oriented Loan Scheme. It should be disbursed to those who are complying with the rules and regulations of NHFS as per Company circulars.

Purpose of Loan & maximum amount of advance:

1. To construct a new residential house- Rs. 50 Lakh

2. To purchase a plot with a residential house or Flat - Rs. 50 Lakh

3. To renovate an existing residential house - Rs. 20 Lakh

4. To perform additional construction works on an existing house(up to

1200 square feet) - Rs. 20 Lakh

5. To purchase a Dwelling site (provided to start construction work within 12 months)-

Rs.10 Lakh(HO Circular 16/2015(BD) Dated 23/03/2015)

Ownership & other details of the pledged property:

1. The applicant should be the owner of the property/plot

2. He/She may be a co-possessor with his/her husband/wife only

3. No property may be accepted having joint ownership other than

husband & wife.

4. As usual never accept those deeds having rights to minors.

5. If a second person is having life interest over the property, it may be

accepted, including the life interest holder in the agreement.

6. The property should have minimum extent of 3 cents in municipal

area & 5 cents in Panchayaths.


.Notes On NHFS

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7. Transactions between family members are strictly cautioned in

purchase loan.

Eligibility of the Applicant:

1. Applicant should be a citizen of Kerala & having the ownership of

site.

2. He should have a comfortable monthly income for repayment.

Age limit of the Applicant/Co-obligants: (HO Cir. 1/2015(BD) Dated 8/1/15)

The applicant shall not attain the age of 70 since the repayment should

complete within the age of 70.

This condition is mandatory for all the co-obligants also.

If married OR the offered property is a joint one, husband/wife should

join as co-obligants.

Repayment Period of Loan: (HO Cir. 16/2015(BD) Dated 23/03/2015)

1. For construction of New residential house - 20 years

2. For outright purchase of land with residential house - 20 years

3. For renovation/additional Construction - 10 years

4. For the purchase of a Dwelling site - 7 years

5. Minimum period of repayment -12 months(Subject to completion of repayment period within 70 years of age)

Prevailing rate of interests ( Cir. 19/2015 wef 27/03/2015) Public:

Up to Rs.5,00,000 :10.00 % Yearly diminishing

Above Rs. 5,00,000 :10.50 % Yearly diminishing


.Notes On NHFS

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No. Of Month

NHFS EMI for Rs. 1,00,000 ( HO Cir. 19/2015 wef 27/03/2015)@10.00% @10.50% @7.50%

Principal Interest Total Principal Interest Total Principal Interest Total

12 8333 833 9167 8333 875 9208 8333 625 8958

24 4167 635 4802 4167 667 4833 4167 474 4641

36 2778 573 3351 2778 602 3380 2778 426 3204

48 2083 546 2629 2083 574 2657 2083 405 2488

60 1667 532 2198 1667 559 2226 1667 393 2060

72 1389 525 1913 1389 552 1941 1389 386 1775

84 1190 521 1712 1190 550 1740 1190 383 1573

96 1042 520 1562 1042 549 1591 1042 381 1423

108 926 521 1447 926 550 1476 926 380 1306

120 833 523 1356 833 552 1385 833 381 1214

132 758 525 1283 758 555 1313 758 382 1139

144 694 529 1223 694 559 1253 694 383 1077

156 641 532 1173 641 563 1204 641 385 1026

168 595 536 1131 595 567 1162 595 386 982

180 556 540 1096 556 571 1127 556 389 944

192 521 544 1065 521 576 1097 521 391 912

204 490 549 1039 490 581 1071 490 393 883

216 463 553 1016 463 586 1049 463 396 859

228 439 558 996 439 590 1029 439 398 837

240 417 562 979 417 595 1012 417 401 817


.Notes On NHFS

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Until the fixation of EMI, simple interest at prevailing rate should be remitted by the loanee(Now @14%) at every month.

Rate of Penal int. on EMI 18%

Delegation of Powers for Loan Sanction (As Per Cir.24/2014 Dated 21/05/14)

1. Up to 10,00,000 Unit Head

2. Up to 15,00,000- Assistant General Manager(RO)

3. Up to 25,00,000- DGM (B & OP) & GM(B)

4. Above 25,00,000- Director Board.

Charges to be collected:

1. NHFS Application form : Rs. 10

2 . Processing charge and Administrative charge for NHFS: (Cir.13/2014 Dated 07/03/2014 WEF 15/03/2014)

Up to 10 Lakh:

0.5% loan amount (Minimum Rs.1250 & Maximum Rs.5000)

Above 10 Lakh & up to 25 Lakh:


Above 25 Lakh


3. NHFS Retention Fund (Refundable): As per Cir. 24/2014 Dated

21/05/2014, it is stopped.

(No need to collect valuation fee, since the legal scrutiny fee & valuation

fee are to be paid from NHFS processing charge A/c)

If the applicant does not avail the loan subsequent to valuation & legal

scrutiny, then balance amount after maintaining the fee for valuation &

legal scrutiny may be refunded from Processing Charge & administration

cost.


.Notes On NHFS

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Number of Installments for Loan Disbursement

The Loan should be disbursed in equal installments. The number of installments of Loan payment may depends on the nature of Loan. ie, construction, additional construction, outright purchase etc.

For Construction /Additional Construction: Three installments

For renovation/extension: Two installments

Outright purchase of land OR land with Building: Single Payment

Documents to be submitted

We have to collect all the property documents which are necessary for the creation of mortgage as usual.(This includes Prop 1 & 2,Deeds,prior deeds, Location, Possession ,sketch , EC ,LTR, BTR(if any),EC etc). In addition to, collect the following documents, depending on the nature of Loan:

For the construction of new residential house:

1. An estimate of construction illustrating the details of works to be

done.(This may get attested by an engineer in govt. service)

2. An approved Building permit with plan from the concerned

Municipal/local bodies.(In some of the panchayaths in Kerala, there is an

exemption for approved building permits for house construction. May ask

for proper documents towards the claim). The building permit is usually

issued for three years and ensures that the period has not been lapsed.

For outright purchase of land OR land with residential house

1. The sale agreement in original between the seller & loanee. (Now the

govt. of Kerala ordered to register sale agreements with a fee of 2% of

sale value. Make sure its legal accuracy). The sale deed may have a

specified period and ensure that it has not been lapsed.


.Notes On NHFS

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2. All the property documents (prop 1& 2, LTR, BTR, Possession, location

etc should be in the name of seller). Please note that the wordings of

Prop 2( the affidavit) from the seller. Only photocopies of deeds are

insisted and originals may be returned after attestation.

3. While advancing for the purchase of a dwelling site , loanee should agree

through an undertaking that the construction of the proposed residential

house should starts within 12 months.

Security of Loan:

The security for the advance will be the offered property /plot purchased and construction thereon. The Estimated Market value should not be less than 1.3 times of loan amount.

For renovation/additional Construction:

1. An estimate of construction illustrating the details of additional works to

be done.(This should get attested by an engineer in govt. service).

2. An approved plan, if any from concerned local bodies for additional

construction.(The area should not exceeds 1200 sq. feet.). If it exceeds

1200 sq. feet, it may be considered as a new construction.

Documents to prove Income:

Applicant should produce proper documents to prove his/her monthly

income. It should be genuine & get confirmed.

As per Cir. 25/2015 dated 18/04/2015, if the applicant is from

agricultural income group/Self employed person/small traders/ Profes-

sionals and Businessmen, the branch manager can assess his/her income,

if it is less than Rs.2,50,000.Loanee may ask to produce Income certifi-

cate from Village Officer/Tahasildar.

A no-resident Indian may submit documents including passport

from his sponsor/employer regarding income-contract and employment


.Notes On NHFS

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up to a loan of Rs. 2,00,000.[All these documents should get attested by

Indian embassy, if the applied amount exceeds Rs.200000].

Salaried people may submit their employment certificates. The

repayment capacity of the applicant should be properly confirm. It shall

be assessed and reported by the officer who conducts the first property

valuation.

The income of husband & wife may consider jointly.

The monthly income of the dependents OR unmarried

children(major) of loanee may consider as income under request,

provided that they should join as co obligants & subject to consider

maximum of 20% of total income required for the loan.

Processing of Loan Application1. Arriving of Eligible Loan Amount:

Consider the following options; the least should be the eligible amount:

a. 75% of the submitted estimate amount OR 75% of sale agreement

amount(purchase loan).

b. 75% of the value of the property assessed through valuation.

c. Loan amount applied.

d. Rs. 50 lakh, Rs. 20 Lakh, Rs. 10 Lakh as the case may be

e. Proportionate Loan amount , fixing 45% of gross monthly income

of the loanee as EMI

Illustration: Monthly Income 25000.00

45% of 25000 = 11250

@ 10.00 % :11250 x 1000/9.79 =11,49,130.00

@ 10.50 % :11250 x 1000/10.12 = 11,11,660.00

(Int. product for 240 months considered)


.Notes On NHFS

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2. Assuring the initial investments:

Applicant should invest at least 25% of submitted estimate amount

initially for new construction. This may properly endorse in the first

property valuation report.

In the case of purchase loan the applicant should have paid the

difference amount of 25% to the seller early, and it should be clearly stated

in sale agreement.

Regarding renovation/extension works, initial investment of 25% is

not compulsory.

3. Collection of Fee:

The prescribed Processing fee should be collected on receiving the

filled application form.

Administration cost may be collect after sanctioning the loan.

Retention fund No need to collect.

4. Disbursing of Loan Installments:

After sanctioning by concerned authority, a valid equitable mortgage should

be created with all usual formalities. The loanee may ask to produce

Encumbrance certificate for the period including date of mortgage. No need

to insist EC in between installments.

1. Construction/Addl. Construction .(Refer Cir. 101/2000 for details)

The initial investment by the loanee should be clearly confirmed.

Even though initial investment is done, the first installment should not be

sanctioned, if the basement is not completed.

Divide the loan amount in to three/two installments as the case may

be. In the NHFS loan issue form, enter the sanctioned amount as loan


.Notes On NHFS

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amount and got authorized by assistant manager concerned. Then disburse

the first installment amount only. After spending the disbursed amount, the

loanee may ask to approach our office & submits an application stating that

the amount is invested at the site and second installment may be allowed.

The branch official should confirm the genuineness of the claim by

visiting the site. A site inspection report should be prepared illustrating the

progress of construction works & amount invested at the site. The invested

amount should get tallied with the initial investment & disbursed amount.

If the site is not within the jurisdiction of the concerned manager, a site

inspection request may forwarded to the nearest branch with copies of

location, possession, sketch certificates, plan, estimate and details of loan.

Same procedures may adopt on the payments of subsequent

installments.

The loanee must claim 2nd / 3rd installments within 4 month of availing

first/second installments.

Extension of period beyond 4 months under the discretion of unit

heads.


.Notes On NHFS

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Disbursements

of Installments

Status of works to be

confirmed

Utilization/completion

certificateInstalment-1 Basement Valuation report-BMInstalment-2 After Inst.1 ,Construction up

to roof level(Single storied

bldg) and ground floor

concrete(Two storied Bldg)

Utilization/Site Inspection-

BM

Instalment-3 After Inst .2 ,Completion of

roof concrete (Single storied

bldg) and First floor roof

concrete(Two storied Bldg)

Utilization/Site Inspection-BM

Completion certificate from Approved

architect/licensed building

supervisor/any Civil

Engineer in serviceFixation of EMI:

After disbursing the prescribed installments the fixation of EMI

should be performed. After that passbook may prepare and issued to the

loanee.

If the loanee does not come to avail 2nd installments within 4 months

& not request to extent the period, a registered notice should be served. If

no reply, recovery steps will be initiated to recover loan plus interest.

If the loanee is requesting to fix EMI, the branch manager can decide

it after making a site inspection to ensure the utilization of disbursed

amount.


.Notes On NHFS

12

Outright purchase of Site/building:(Please refer Cir. 29/95 Dated 08/11/1995 for details and annexure). The initial

payments should get confirmed through the sale agreement. The registration

deed should get prepared with the endorsement of our loan payment details

including loan amount , cheque number , date, name of bank etc.(These

wordings should informed to the loanee prior to the preparation of deed.

(For details please refer Cir. 101/2000)

One of our officers should attend the registrar office and informed as the

authorized official to collect the registered deed from SRO. The receipt at

the time of registration should be obtained by the company. It should

ensure that the registration deed is prepared with the required stamp duty

prescribed on the amount shown in the sale agreement. It is also get

confirmed that the loanee have remitted the required fee on the sale

agreement amount to the government.

Please note that all charges that are to be collected should be remitted by

loanee in cash, since it is not possible to deduct the amount from cheque to

the seller.

It is the duty of the loanee to collect all the prior deeds in original from the

seller & hand over to our official on the date of registration at SRO.

After collecting the Original new deed from the SRO, the Manager

should inform the loanee to reach the office for mortgage creation. After that

he may ask to produce all the revenue records of the property from village

and SRO. All the deeds including the new one should kept safely at the

branch. EMI should be fixed on the date of payment itself.

Purchasing of Flat: Please follow HO circular No 158/2005 dated

114/11/2005 and HO Letter No 12401 Dated 07/04/2012 while accepting

applications for purchasing of flats.


.Notes On NHFS

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Note the following while accepting flat:

1. Cost per squre feet should not exceed Rs.3500(Cir. 1/2015 Dt. 8/1/2015)

2. Ask to produce the Bye-law of the society concerned

3. Area of flat is Built up carpet area(the inside area). Never consider

common areas.

NHFS Purchase Loan-

1. . ( , $ , % , , ) , , ).

2. , 2 24 %.

3. $ , .

4. Prop1 ,prop 2 4 4. prop 2 4 content @ 4.

5. 24 4 @,.

6. , 4 .

7. $ % K . ) , , 4 .

8. 4 4 4 4 24 , . a/c payee @ $ .


.Notes On NHFS

14

9. $ 4 , L4 4 , 2 recital O @ 4 ,.

10. @4 4 4 $ 2, , , @,.

11. ,4 L$ @4 4 .

(4 4 )

12. 4 Q @4 K 4 % 4. %4 V% , %4 , .

13. % 2

4 Equitable Mortage @ . V $ $ , ( ) .($ @,

Prop 1, 2 V%2, Equitable Mortage @, 4.

14., , (O 2, ) Q 24 @,.


.Notes On NHFS

15

Sample of Recital to be incorporated in Purchase Loan Sale Deed

...............................................ta {]Imcw Xmsg ]n-I-bnse hl-I-

fn F\n-p ka-kvXm-h-Im-i-fpw ay-am

aptJ\ xx ew cq] Xocphne \nbn v \nv Xocp

Xcn-Ibpw, Bb-Xn xx ew cq] \n

sdmw ]W-am-bpw, _mn Xocphne xx ew cq] tIcf

tv ^n\mjy Fss{]-kkns xx

\n-fpsS t]cn `h\ hmbv]-bmbn xx _mv xx

imJbnse xx Xob-Xn-bnse xx \ sNv aptJ\ F\nv

\n-fn Inn t_m[y-s-Sp-I-bpw, Xmsg ]n-I-bn

F\n-p ka-kvXm-h-Im-i-fpw ...........................


.Notes On NHFS

16

Annexure III(NHFS-IV)

LETTER OF UNDERTAKING

From

Sri/Smt.______________________

_____________________________

_____________________________

I have applied for a housing loan from your branch. You have sanctioned

a sum of Rs.__________________ for the purchase of ________________cents

of property comprised in Rsvy No______ situated in _____________

village_______________________taluk_________________ district from

Sri./Smt.______________________. I hereby undertake to deposit the original

title deeds of the said property after registration, in favour of KSFE Ltd. for

creating equitable mortgage. Thanking you

Yours faithfully

Signature

Name & Address


.Notes On NHFS

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NHFS-V

Letter of Authorization to collect Title deeds from Registrars Office.

From

_____________________

_____________________

_____________________

To

The Branch Manager

KSFE Ltd.

Sir,

I, Sri/Smt________________________________________________

have applied for plot/house purchase loan from your institution. You have

sanctioned me a sum of Rs.___________________

(Rupees________________________only). After registration of the sale deed, I

hereby authorize you to collect the original documents from the sub registrars

office on my behalf. Thanking you,

Yours faithfully


.Notes On NHFS

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NHFS-VI

Certificate

I,___________________________________________________________

Branch Manager/Assistant Manager of _________________________ branch

of the Kerala State Financial Enterprises Limited, was personally present at the

time of submission of documents for registration of the property mentioned in

the loan agreement dated________________ and certify that a recital of the

fact that ___________________________ branch has advanced a loan amount

of Rs._______________ (Rupees ________________________________only)

vide cheque no___________ dated_____________________drawn on

___________________Bank ______________________ branch for the

purchase of site/ site with building has been incorporated in the sale deed.

Name of the Officer

Signature with date


.Notes On NHFS

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DECLARATION

I hereby agree that the following documents will be produced at the earliest after the registration of the document in my name.

1. Land Tax receipt

2. Possession certificate

3. Sketch & Location Certificate

4. Building Tax receipt

5. Building Ownership certificate

6. Encumbrance Certificate

Signature with name & address of loanee

Place:

Date:


.Notes On NHFS

20

Letter of Authorization from loanee to pay cheque to seller

From

_____________________

_____________________

_____________________

To

The Branch Manager

KSFE Ltd.

_________________

Sir,

I, Sri/Smt________________________________________________

have applied for plot/house purchase loan from your institution. You have

sanctioned me a sum of Rs.___________________

(Rupees________________________only). I request that Kindly pay the

cheque to Sri./Smt. ________________________________________, the

owner of the property towards the settlement of amount as per sale agreement in

between us. Thanking you,

Yours faithfully,


.Notes On NHFS

21

Receipt

Received with thanks from the Branch Manager KSFE Ltd.

______________________a sum of Rs________________

(Rupees__________________ vide cheque No__________________ Dated

___________________of ____________________ Bank _______________

branch towards the sale prize of the land/land with residential house

comprised in Re Survy No__________of_______________Amsom

_______________ desom ________________village ____________Taluk

________________ District with an extent of______cents, sold to Sri./Smt.

_______________________________________________. This payment of

loan amount is under the New housing purchase finance scheme sanctioned to

Sri. Smt____________________________________________ from KSFE Ltd.

_____________branch.

Signature with date

Name & Address of the seller


.Notes On NHFS

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Letter Evidencing The Deposit of Title Deeds

To

The Branch Manager

KSFE Ltd.

________________

Sir,

I write to put on record that as already agreed upon, I have on_______________

deposited with at ____________________________ , the following documents

of title to immovable property with an intention to secure the repayment to the

Company of money that are now due to shall from time to time or at any time

due from me either solely or jointly with any other person to the company on

account of Housing Loan or any manner what so ever and include interest ,

commission and other charges of the company and any liability incurred in

connection thereto.

Sl. No Details of Description Estimate value

Title deeds of property by Depositors

Yours faithfully


.Notes On NHFS

23

The Kerala State Financial Enterprises Ltd.FROM

BRANCH MANAGER

TO

BRANCH MANGER

Our Ref: NHFS- Your Ref:

Date:

Request for Site InspectionSub: Disbursement of Housing Loan Installments-Inspection of Construction site-request-reg.

Ref: NHFS-________of Sri./Smt.__________________________________

[Submitted Estimate amount is Rs_________________].

We have sanctioned an amount of Rs.__________________to Sri.__________________________________as NHFS advance for the construction/renovation of residential house.

Out of which Rs._______________ has already been disbursed as first/Second installment/s.

Now the loanee approach us for Second/final installment.

Therefore we request that kindly visit the construction site & send us the status of construction works & amount invested so far.

We are enclosing the copies of Estimate ,Possession, Location & sketch certificates.

BRANCH MANAGERCopy to : Loanee, Sri./Smt.


.Notes On NHFS

24

Kerala State Financial Enterprises Ltd.(a government of Kerala Undertaking)

Branch Office :

Ref No:NHFS- Date:

NHFS Site Inspection Report

Name of Loanee Account No

Amount sanctioned Date of payment of last installment

Installments/amount disbursed so far

Date of request for next installment

Estimate Amount Nature of Loan

Name of the Inspecting Officer :_________________________________________

Date of Site Inspection :________________________________________

Current Status of Construction :_________________________________________

Materials, if any stored :_________________________________________

Approximate investment made :_________________________________________

Proposed works to be done :_________________________________________

Recommendation :_________________________________________

_______________________________________________

Site Inspecting Officer Branch Manager


.Notes On NHFS

25

NHFS XI

THE KERALA STATE FINANCIAL ENTERPRISES LTD.

(A Government of Kerala undertaking)

HOUSING FINANCE

Date : Branch :

RECEIPT

This receipt executed by sri/smt ........................................ .........................

aged........................S/oD/oW/o........................................... of ....................................................... house .................................................... village.................................................taluk...............................district ............................ state now residing at ..................................... house .................................... village ...................................... taluk.......................................... district ........................... state employed as ..............................................[herein after called the payee]for Rs....................... [Rupees .............................. only] in favour of the kerala state financial enterprises limited, a company incorporated under the companies act, 1956 and having its registered office at Thrissur [herein after called the company] whereas the payee is a loanee under the companys New Housing finance scheme agreement No............... dated ................................. and the payee has received from the company in cash an amount of Rs.......... [Rupees........................................................only]

towards first/second/final installment. This receipt for Rs............................ [Rupees................................................ only] ( total amount) is hereby given by the payee in token of having received the full amount due to him/her under the said Housing Finance agreement subject to his/her obligations to pay future installments as stipulated on the Housing Finance Agreement.

Signed by Sri/Smt........................................................ stamp

in the presence of witnesses


.Notes On NHFS

26

COMPLETION CERTIFICATE

This is to certify that I have inspected the construction/modernization/extension

work of the residential building in SyNo__________Rsvy No________

of________________________ village ______________Taluk

______________________ District owned and possessed by

Sri/Smt._________________________ ___________________

______________________________________________________________as

specified in the plan and estimate approved by the company and that the work

has been completed.

Date : Name :

Designation :

Signature of the Engineer :

(office seal)


.Notes On NHFS

27

Premature Closing/Bulk remittance

1. Premature closing without availing entire installments:

Simple interest (now @14%) has to be collected from the date of payment of

each installments subject to a minimum period of One year. Add penal interest

@ 18% as the case may be. Deduct the simple interest already remitted, if any.

Sum of the arrived amount and the total disbursed amount less Retention fund

has to get collected from loanee.

(Same illustration can make use of for the p/closure after fixing EMI, but before

first installment become due).

2. P/Closure after fixing EMI, but before completing One year:

Interest at the prescribed rate for EMI should be collected for a minimum period

of One year, in addition to simple interest collected, if any. If the a/c is under

default on the date of P/c, penal interest should also be collected & adjustment

of Retention fund as usual.

3. P/closure after One year of Fixing EMI:

Here the loan account should be rework on yearly diminishing basis with the

prescribed rate for EMI until the date of closing. The total repayment per year

should get deducted & balance carries forward to next years opening. The

process is continued till date and the balance due is the amount of P/closing.


.Notes On NHFS

28

Example:

Loan amount:500000 Rate :10.25% Date of EMI fixation :10/02/2010

Period:180 Month EMI:5556(2778+2778) Date of P/closing :28/04/2014

period Amount Outstanding

Interest Total EMI amt. remitted

Balance

1 2 3(2x10.25%) 4(2+3) 5 6(4-5)

10/2/10 to 10/2/11 500,000 51,250 551,250 66,672 484,578

10/2/11 to 10/2/12 484,578 49,669 534,247 66,672 467,575

10/2/12 to 10/2/13 467,575 47,926 515,502 66,672 448,830

10/2/13 to 10/2/14 448,830 46,005 494,835 66,672 428,163

10/02/14 to 10/04/14 428,163 7,314 435,477 11,112 424,365

10/04/14 to 28/04/14 424,365 2,146 426,510 - 426,510

It may also be illustrated as follows:

YearAmount Outstanding at beginning of year

Amount remitted via EMI

Interest @10.25%

Amount of Principal repayment

Loan O/s at year end

1 2 3 4 5 6

Year 1 500,000 66,672 51,250 33,336 484,578

Year 2 484,578 66,672 49,669 33,336 467,575

Year 3 467,575 66,672 47,926 33,336 448,830

Year 4 448,830 66,672 46,005 33,336 428,163

2 month 428,163 11,112 7,314 5,556 424,365

18 days 424,365 - 2,146 - 426,510

TOTAL 2,77,800 2,04,310 1,38,900


.Notes On NHFS

29

Amount of Premature closing : Rs.426510

Advance :5,00,000-1,38,900 = 3,61,100

Interest :2,04,310-1,38,900 = 65,410

Total :3,61,100 +65,410 = 4,26,510

4. Reworking of EMI on Bulk remittance (10% or above of the advance):

Here the outstanding NHFS advance show a debit balance of

Rs.3,61,100 & interest on NHFS shows a credit balance of Rs. 1,38,900.

Suppose loanee wish to remit Rs.75000 as lumpsum to this account.

We have to make advance O/s to Rs.426510 and Interest credited

amount to Rs.204310.

For this, prepare a General transfer challan debiting NHFS advance and

crediting Interest on NHFS, for an amount of Rs. 65410(the difference).

Then adjust the amount of Rs.75000 by crediting it towards principal

outstanding of Rs.426510

The new loan outstanding will be 426510-75000 = 3,51,510

This amount has to be repaid in the remaining 130 installments

@10.25% int. with due date on every 28th day.

New EMI: Rs.4601.00 (2704 +1897)

(All the above illustrations are based on manual procedure. This can be used

for arriving the values manually).

Details Regarding Company Employees Rate of interest with a concession of 2.5 %

Up to Rs.5,00,000 : 7.50 % Yearly diminishing (If EHL is not availed)

(If EHL is availed, concession rate of 7.50% is given for Loan up to Rs.1,50,000 only)

Above Rs. 5,00,000 :10.50 % Yearly diminishing.


.Notes On NHFS

30

Exemption in remitting fee/charges:

None of the fee need be collected from company employees, such as Registration fee, Processing fee, Administration cost & Retention fund. Keep in mind that the payment of legal scrutiny fee to panel advocate & valuation fee to approved valuer may be debited to NHFS processing charge a/c.

Exemption in initial investment:

The condition of initial investment before availing the loan will not insisted for company employees.

Authorities concerned

Our Business department is the authority of processing NHFS applications. Contact P&HR department for matters related with Employees housing loan [EHL].

Sending of Documents to HO

While processing NHFS application, sent all the revenue records in original, and attested copies of all original title deeds to HO[Business].

After making payment of all installments & fixing EMI, the Salary recovery request should be forwarded to HO[P& HR] on the same day, including details of loan.

Salary deduction facility:

The employee should remit the EMI through deduction from his/her monthly salary.

Access to the property:

In the case of company employees, head office is insisting for four-wheeler motorable access to the site where the construction is performed.


.Notes On NHFS

31

Tips related to Online NHFS Transactions

Add Loan submission as usual while receiving application

Perform NHFS issue on date of payment of first installment

In loan issue, no need to select EMI interest rate.[Only 4 details are

wanted to add with ISSUE. ie, Name of Loanee, Sanctioned

amount(advance), Period of repayment & Nature of Loan]

Disburse the required installment amount only through Loan Disbursement

menu

Deduct Charges(Administrative/processing) through GT, if required.

Perform ADD-CHECK-PASS in loan disbursement menu.

After completion of all installments, perform EMI fixation as follows:

1. Select NHFS Loan issue form

2. Type Loan No & Press Enter key

3. Find out the required control number for prescribed EMI interest rate.

4. Type the control number & press enter key-verify the EMI int. rate

Modify Yes Authorise OK

Click on work sheet displayed at right extreme end of Loan issue form

5. Are you want to Fix EMI ?

Yes

6. EMI Work sheet displayed. Ensure its accuracy

7. Click on Pink arrow symbol-(return to Loan issue form)

Modify-Yes

Authorise-Ok

8. Check EMI through NHFS transaction menu[Ctrl W]


.Notes On NHFS

32

Re- fixation towards part payment & Premature closure in all aspects

should be strictly performed manually (Refer Cir. 101/2000)

Related Account Heads with Code Numbers in BAS:

Registration Charges NHFS[5810], NHFS Processing Charge[5803],NHFS

administrative charges[5804], NHFS advance[5800], Interest on

NHFS[5801], Penal Interest in NHFS[5802], NHFS Retention Fund

Points to remember:

The loanee should complete the construction within 12 months of first

installment OR within 4 month of last inst.(whichever is earlier).

In the case of extension & renovation, the loanee should complete the

construction within 8 months of first installment OR within 4 month of

last inst.(whichever is earlier).

Completion certificate should be produced after construction/renovation

Simple interest due in between the disbursement of loan installments

should be remitted.

Due date of loan will be the date of payment of last installment.

Kindly advice the loanee to avail the last installment(first installment, in

case of purchase loan) in a convenient date for repayment. Since the

period may up to 240 months, it may entertain several issues towards

repayment.


.Notes On NHFS

33

Re-Fixation EMI is permitted, while remitting at least 10% of the

advance availed.

Date of Last re-fixation will be the due for subsequent installments.

Interest at the prescribed rate for minimum one year from the date of

fixation of EMI (in addition to simple interest collected, if any) is

charged on premature closing within one year

Down load NHFS table for arriving EMI for various periods.

It is strictly advice to keep manual personal ledgers.

The payments should be through a/c payee Cheque only.

Related HO Circulars:

29/95 Dated 08/11/1995 ,09/96 Dated 02/03/1996,17/96 Dated 17/05/1996,32/96 Dated

26/09/1996,22/97 Dated 30/04/1997, 03/98 Dated 06/01/1998 ,05/98 dated 07/01/1998

,101/2000 Dated 16/06/2000,13/2012 Dated 29/03/2012, 70/2013 dated 28/11/2013,

13/2014 dated 07/03/2014, 24/2014 Dated 21/05/2014, 1/2015 dated 8/1/15, 16/2015 dated

23/03/2015, 19/2015 Dated 25/3/2015, 25/2015 Dated 18/04/2015


.Notes On NHFS

34

Details of Company stationeries:

Form No NameNHFS - I NHFS Application Form

NHFS-II NHFS Covering Abstract(not used now)

NHFS-III NHFS Agreement

NHFS IV NHFS Undertaking

NHFS-V NHFS Letter of authorization

NHFS-VI NHFS Certificate

NHFS-VII NHFS Scrutiny Note

NHFS-VIII NHFS Pass Book

NHFS-IX NHFS Personal Ledger

NHFS-XI NHFS Receipt

NHFS-XIII NHFS Brochure

NHFS-XIV NHFS EMI table

With wishes,

Gireesh NV[3423] ,Assistant Manager, Kunnamangalam[198]944 600 5115
