DMI HOUSING FINANCE PRIVATE LIMITED MOST IMPORTANT TERMS AND CONDITIONS (MITC) Page 1 of 7
MOST IMPORTANT TERMS AND CONDITIONS (MITC) (For individual Housing Loan) The Most Important Terms and Conditions of the housing loan agreed to between the Borrower(s) and DMI Housing Finance Private Limited, a Company incorporated under the Companies Act, 1956 and having its registered office at Ashi Bhawan, Ground Floor, 19, Rouse Avenue, New Delhi 110 002 hereinafter called DMI HFC or Lender, are mentioned below and are to be read and understood in conjunction with the terms contained in the Sanction letter and the Loan Agreement and other documents which you have executed with DMI HFC (collectively referred as Transaction documents ). The MITCs mentioned here are merely indicative and not exhaustive. The loan shall be governed by the Transaction Documents including the Loan Agreement. 1. Loan: 1.1 Loan Amount: a. Home Loans (HL): Maximum 80% of the assessed value of Property for home loan from minimum loan amount of Rs. 10 lacs upto Rs. 150 lacs. This is restricted to maximum 80% for home loans and maximum 60% for non-residential premises. The maximum LTV is offered to such applicant who falls within low risk category borrowers. b. Loan Against Property (LAP) Residential /Non-Residential Premises ( NRP): Under this scheme, Loan shall be sanctioned upto Maximum 60% of the value of the Property under proposal, depending upon the nature, type and possession status of the Property considering the purpose of the loan, repaying capacity and risk profile of the applicant. 1.2 Purpose of Loan: The loan will be sanctioned for the purpose of purchase/construction/ extension/repairs/renovation of new/second hand residential house/flat/plot of land a. Home Loans: i. Construction/ purchase of Dwelling Unit ii. Purchase of Plot and construction of house thereon iii. Balance transfer of Housing Loan already availed from Bank/ Housing Finance Company iv. Improvement or Extension of the existing House b. LAP: Loans against pre-owned properties, to be utilized for other than those specified in the Home Loans herein above. Loan under this category may be sanctioned for purposes of business expansion, asset acquisition, personal/family need, travel, medical treatment etc. c. NRP: DMI HFC offers financial assistance for the acquisition of office/ commercial properties and DMI HFC also sanctions loan against the non-residential premises for business or personal needs. Page 2 of 7
1.3 Rate of Interest (ROI): Floating rate linked to SBI Benchmark Prime Lending Rate (SBPLR) a. SBPLR : 14.75% as on date b. ROI : ± 2% of SBPLR 1.4 Utilization of Loan: The amount of the loan shall be utilized strictly for the purpose detailed in the Borrower s application and in the manner prescribed. The construction of the house/flat or the modification/extension proposed by the Borrower in the existing house/flat should be strictly according to the plan approved by the Local Authorities/Town Planning and Development authorities. Any modification desired in the plan as originally approved, can be undertaken only after express sanction therefor has been obtained from the appropriate authority. Loans disbursed to the Borrower should not be utilized for any of the activities listed herewith; the business of chit fund, or nidhi company, or agricultural or plantation activities or in real estate business, or construction of farm houses; or trading in Transferable Development Rights (TDRs) investment in capital market including margin trading and derivatives. The Borrower is required to ensure that the loan amount disbursed to him is not remitted outside India. The Borrower should also ensure that the loan disbursed to him is not credited into his NRE / FCNR (B) accounts. 1.5 Tenure : The loan can be repaid generally over a maximum period of 20 years subject to the age, risk profile, age of the property at loan maturity and the specific product availed by the Borrower. a. Up to 20 years for Home Loans, b. Up to 15 years for Loan Against Residential Property c. Up to 10 years for Loan Against Non Residential Property 1.6 Eligibility Criterion: a. The Borrower age should not exceed 70 years at time of maturity of loan. b. The Borrower should have the earning/ financial capacity to pay Equated Monthly Instalments (EMI) along with such other charges as applicable without failure. c. The Mortgaged Property must be absolutely clear and marketable and free from any Encumbrances and must be enforceable under the applicable laws. 2. Fee and Other Charges: a. Processing Fee: 1% for HL and 1.5% for LAP on the loan amount applied (non - refundable) to be paid by way of cheque before or at the time of disbursement b. Prepayment / Foreclosure Charges: NIL for individual customers / upto 5% for partnership firms and corporate entities c. Penal Interest for delayed payments of EMI s/pre EMI s: A maximum of 24% P.A. interest on the defaulted sum d. Bounced Cheque / ECS or Standing instructions dishonors: Rs. 500/- Per Dishonour Page 3 of 7
e. Incidental (Log-in) Charges: Filing charges, administrative cost etc., including Legal & Technical fee to the empanelled professionals to be paid by way of cheque in addition to processing fees, at the time of submitting the loan application. f. Stamp Duty / CERSAI Charges: Stamp duty, e-filing charges, and other statutory dues applicable on the Security documents or Transaction Documents may vary depending on the location and will be charged in addition to processing fees. 3. Security for the Loan: 3.1 Security of the loan would generally be security interest on the property being financed and / or any other collateral / interim security as may be required by DMI HFC. 3.2 Primary: The loan will be secured by Equitable/Registered mortgage/extension of mortgage of the property constructed/ to be constructed/ purchased/ to be purchased for which the loan is to be sanctioned. 3.3 Guarantee / Interim security Pending Mortgage: Wherever creation of mortgage is likely to be delayed for any valid reason, suitable security including third party guarantee, as considered necessary, may be taken for the interim period. 3.4 Other Security / Collateral: If mortgage of the property being financed is not possible, DMI HFC may accept, at its discretion, security of adequate value in the form of Life Insurance policies, Government Promissory Notes, shares/debentures, gold ornaments or such other tangible security as may be deemed appropriate. 4. Insurance of the Property / Borrowers: 4.1 The borrower shall be vigilant and shall ensure that the property mortgaged be comprehensively and adequately insured for the market against all risks such as earthquake, fire and flood, explosion, storm, tempest, cyclone, civil commotion, etc., other appropriate hazards during the entire tenor of the loan and to produce evidence thereof to DMI HFC each year /or whenever called upon to do so. DMI HFC being made the sole beneficiary under the insurance policy during the entire tenor of the loan. The Borrower shall pay the premium amounts promptly and regularly so as to keep the policy/policies alive at all times during the said period. 5. Inspection: 5.1 DMI HFC will have free access and the right to inspect, at all reasonable times, the Borrower s property by an officer of DMI HFC or a qualified auditor or a technical expert as decided by DMI HFC for the purpose of inspecting the condition or progress of construction and accounts of construction to ensure proper utilization of the loan and the cost thereof shall be borne by the Borrower. 6. Conditions for the Disbursement of the Loan: Page 4 of 7
6.1 Disbursements under the loan shall be made subject to fulfillment and compliance of the home loan agreement and all other standard documents and writings executed by the borrower and as specified by the Lender, including the following: a. Submission of all relevant documents as mentioned by DMI HFC in the sanction letter / Loan Agreement. All the security documents prescribed have been executed by borrower/co- applicant(s)/guarantor/s. b. Legal and Technical assessment of the property. c. Creation of security interest as desired by the DMI HFC. A valid mortgage (equitable or registered if equitable mortgage is not possible) has been created in favour of DMI HFC as per the laws of the State. The property must be clear, absolute unencumbered and marketable to the satisfaction of DMI HFC. Wherever creation of mortgage is likely to be delayed for any valid reason, suitable security including third party guarantee, has been taken for the interim period. d. Payment of own contribution in full by the Borrower (total cost of property less the loan amount), as specified in the sanction letter. e. No event of default has occurred or is subsisting; f. Providing adequate utilization proof as desired by DMI HFC. g. The customer needs to insure the property with an insurance company, against loss by fire, earthquake, floods and other damages, with DMI Housing Finance Private Limited as the beneficiary. The customer should furnish copy of the insurance policy with respect to the property(ies) endorsed in favour of the Lender as the financier/mortgagee. h. Undertaking by the customer to regularly provide DMI HFC information, including details regarding progress / delay in construction, any major damage to the property, change in employment/ contact details, non-payment of taxes pertaining to property, etc. i. The construction is being undertaken as per the approved plans. j. The customer has satisfied himself/herself that required approvals for the project have been obtained by the developer. k. All required approvals for the property have been obtained and are available with the seller in case the property is being purchased in resale. 6.2 DMI HFC may disburse the quantum of loan in lump sum or in installments at its own discretion depending on the level of construction of the House/Flat as acceptable to DMI HFC. DMI HFC will disburse loan amount directly to the builder/seller/society as the case may be or as requested /specified/directed by the Borrower to DMI HFC at the time of each disbursement. DMI HFC shall not be responsible / liable in any manner whatsoever for any delay by the Borrower in providing such request/specification/ direction to DMI HFC and the Borrower shall not claim any costs, charges and expenses in any relation to any non-disbursal due to any such delay by the Borrower. 6.3 The Lender would be free to stop disbursements of further installments, on the happening of any of the events which will affect the security created in any way, i.e. due to stoppage of construction, delay in construction, litigation, acquisition, requisition, reduction in the value of the security offered, on happening of any events as stipulated in Page 5 of 7
the home loan agreement under the heading Events of default or for any other reason as deemed fit by the Lender. The Lender reserves the right to collect any tax, if levied by the State/Central Government and /or other Authorities in respect of this transaction. 7. Repayment of the Loan and Interest: 7.1 Repayment: The loan is to be repaid by way of Equated Monthly Installments (EMI), which comprises of both principal and interest component, over the tenure of the loan. Repayment commences from a date specified in the sanction letter / letter of arrangement. The liability to DMI HFC will be extinguished only when the outstanding in the loan account becomes Nil, on payment of residual amount, if any. 7.2 Pending final disbursement, only interest is applicable on the loan disbursed, this interest on the amount disbursed is called Pre-EMI. Pre-EMI interest is payable every month from date of each disbursement upto date of commencement of EMI. Pre EMI /EMI could be Fixed/Variable on monthly rests as per the scheme chosen by the customer which is linked to SBI Benchmark Prime Lending Rate revised periodically based on market conditions. 7.3 Liability of Borrower to be Joint and Several: In cases where the Loan is provided to more than one Borrower, then the liability of the Borrower to repay the Loan together with interest and all other amounts and to observe the terms and conditions of the Agreement/ and any other agreement(s), document(s) made between the Borrower and DMI HFC in respect of the Loan is joint and several. 8. Brief Procedure to be followed for recovery of dues: 8.1 In the event of a default in terms of the home loan agreement, the Lender shall send reminders to its customers from time to time for payment of any outstanding on his loan account, through emails, telephone, SMS, letters, facsimile transmissions and visits, as the case may be and / or through third parties appointed for collection purpose to remind, follow-up and collect dues and then, if the need so arises follow up with a notice to such effect before proceeding as per the terms of the home loan agreement and applicable laws and procedures prescribed therein. Any third party so appointed, shall adhere to the Indian Bank Association s (IBA) code of conduct on debt collection. 9. Statement of Accounts: 9.1 A request for the physical copy of the statement of account can be placed by visiting the office of the Lender. 10 Customer Services: 10.1 The borrowers can visit the premises of DMI Housing Finance Private Limited on any working day between 10:00 AM to 05:30 PM on any working day. Page 6 of 7
10.2 Procedure to obtain the following: a. Loan Statement: 5 working days from the date of the written request by the borrower. b. Photocopy of the Title Documents: 10 working days from the date of the written request by the borrower. c. Return of Original Documents on closure or transfer of the loan: 15 working days from the date of the written request by the borrower. 11 Grievance Redressal: 11.1 Borrower can complain to customer care on our website www.dmihousingfinance.in; or Alternately the borrower can meet or write to the Customer Care Manager DMI HFC; or The customer may escalate to the Director at DMI Housing Finance Private Limited Ashi Bhawan, Ground Floor, 19 Rouse Avenue, New Delhi 110 002 Fax.: + 91 11 4120 4400 Email.: dmi@dmihousingfinance.in 11.2 In case the complainant is dissatisfied with the response received / or where no response is received, the complainant may approach the Complaint Redressal Cell, Department of Regulation & Supervision, National Housing Bank, 4 th Floor, Core 5A, Indian Habitat Centre, Lodhi Road, New Delhi 110003 or email at crcel@nbh.org.in). It is hereby agreed that for detail terms and conditions of the Loan, the parties hereto shall refer to and rely upon the loan and other security documents executed / to be executed by them. The above terms and conditions have been read by the borrower/s /read over to the borrower by Shri / Smt. / Km. of the Company and have been understood by the borrower/s. (Signature or thumb impression of the Borrower/s) (Signature of the authorised person of Lender) Disclosure:- DMI HFC is authorized to disclose from time to time any information relating to the loan to any credit bureau (existing or future) approved by Government of India and Reserve Bank of India without any notice to the borrower. DMI HFC is also authorized to make inquiries with the Credit Information Bureau of India (CIBIL) and get the applicants Credit Information Report. The Most Important Terms and Conditions mentioned above are an indicative list of Terms and Conditions of our loan products and DMI HFC reserves the right to modify the same from time to time. The Terms and Conditions are further described in our Loan Agreement under relevant sections/schedules and therefore should be read in conjunction with and subject to those mentioned in the loan agreement. Page 7 of 7