DECCAN GRAMEENA BANK

DECCAN GRAMEENA BANK 

(Sponsored by State Bank of Hyderabad) 

Head Office : 

9-27/1, First Floor, Lalitha Nagar, 

Dilsukhnagar, Hyderabad-500 060. 

Tel: Off : 040-24066651, 24150621 

Fax : 040-24065129. 

Sl.No. 

Cir.No.ADV/ 78 /2006-2007 Date : 02-02-2007 

ALL BRANCHES / ADMINISTRATIVE OFFICES 

PERSONAL SEGMENT ADVANCES – 

COMPREHENSIVE GUIDELINES ON HOUSING LOAN TO PUBLIC 

* * * 

We herewith enclose comprehensive guidelines on Housing Loan Scheme for 

information of the branches. The scheme has been made market competitive and customer 

friendly, in respect of interest rates, quantum of finance, eligible number of NMI as per the 

age group etc. Comprehensive guidelines of the scheme are furnished in Annexure-I. The 

DOs & DON’Ts as per Annexure-II, the instructions to be followed while obtaining post 

dated cheques as per Annexure-III and RBI instructions on implementation of Delhi High 

Court orders on Housing loans as per Annexure IV are also enclosed, with instructions to go 

through the contents carefully and follow the same. 

The comprehensive guidelines detailed in Annexure-I supercede all the earlier 

instructions issued on the subject. 

Please bring the contents of the circular to the notice of all the members of staff 

working at the branch / administrative offices for their information and compliance. 

Crl. ADV-79 1

Enclosure to ADV/ /2006-07. Dated …………. 2007. 

LIST OF ANNEXURES 

DOCUMENTS TO BE OBTAINED (FOR HOUSING LOAN SCHEME) 

1) Application for housing loan : Annexure - A 

2) Statement giving all the information / papers / 

documents for Availment of loan. : Annexure - B 

3) Valuation report of the property : Annexure - C 

4) Branch Manager’s Certificate : Annexure – C-1 

5) Letter of authority to be obtained from the 

employee applicant : Annexure - D 

6) Letter of under taking form the pay 

disbursing authority. : Annexure - E 

7) Letter of under taking where the employee 

himself is the disbursing authority. : Annexure – E-1 

8) No objection / confirmation letter from 

the builder / vendor : Annexure - F 

9) Credit / Opinion report : Annexure - G 

10) Housing Loan appraisal form : Annexure - H 

11) Arrangement letter : Annexure - I 

12) Preliminary agreement in case of purchase 

of flat / house from promoters /vendors : Annexure - J 

13) Memorandum of Term Loan agreement : Annexure - K 

14) Mortgage Deed : Annexure - L 

15) Letter of guarantee for housing loan : Annexure - M 

16) Letter from non-corporate borrowers (s) 

confirming the deposit of title deed(s) : Annexure - N 

17) Letter from non-corporate borrowers (s) 

confirming the deposit of title deeds for extension 

of the existing mortgage : Annexure - O 

18) Certificate of inspection (for outright purchase 

of house / apartment/ flat) : Annexure - P 

19) Certificate of periodical inspection 

(construction of house / flat) : Annexure -Q 

20) Authorization letter to receive the sale deed : Annexure - R 

21) Letter of pledge : Annexure - S 

22) Housing loan agreement. : Annexure – T 

23) under taking from applicant where a housing 

loan is granted for purchase of plot of land 

Annexure- U 

Crl. ADV-79 2

HOUSING LOAN SCHEME – COMPREHENSIVE GUIDELINES 

DIRECT HOUSING FINANCE TO INDIVIDUALS 

1. PURPOSE : 

i) To purchase a new flat / house or construct a house. 

ii) 

iii) 

iv) 

2. ELIGIBILITY : 

To purchase plot of land and construction of house (both) thereon. 

To purchase an existing (old) house / flat or extension of existing house. 

To repair or renovate an existing house / flat. 

i) (For all purposes mentioned from i to iv) 

ii) 

iii) 

ANNEXURE - I 

Individual(s) over 21 years of age with gainful occupation including persons 

engaged in agriculture / allied or any other economic activity with a steady source 

of income. However, they should not be more than 65 years of age. 

To purchase plot of land and construction of house (both) thereon. Borrowers 

who are willing to take up the construction of house within 6 months from the date 

of release of loan meant for purchase of plot and complete the construction work 

within 2 years from the date of sanction of loan. An undertaking to that effect 

must be obtained from the applicant. 

In case the applicant fails to comply with the above stipulation / under taking 

submitted; interest at commercial rate as applicable to “Clean Loans” will be 

charged on the outstandings from the date of availment of the loan; till the amount 

is fully repaid. 

To purchase an existing (old) house / flat or extension of existing house. The 

house / flat proposed to be purchased must be less than 15 years old. 

Age of the building shall be certified by an approved valuer and can also be verified from the 

date of permission for construction given by competent authority. 

iv) 

To repair or renovate an existing house / flat, 

The borrower should obtain permission from competent authority like Gram 

Panchayat / Municipality, etc. if the repairs and renovations require such permission. 

Two loans may be given to an individual provided he has the capacity to repay. The two 

loans may be given at different times either for purchase / construction and subsequent 

repair / renovation of a single property or for purchase / construction or repair / renovation of 

two different properties. 

3. TYPE OF LOAN: Term Loan. 

4. LOAN AMOUNT : 

(A) 

The quantum of finance for 

i) purchase or construction of a new house / flat 

ii) 

iii) 

purchase plot of land and construction of house (both) 

purchase an existing (old) house / flat or extension of existing 

house. is furnished hereunder: 

Urban : Rs.50.00 lakhs 

Semi-urban : Rs.25.00 lakhs 

Rural : Rs.15.00 lakhs 

Crl. ADV-79 3

(B) Maximum limit upto Rs.10 lakhs for 

Repair or renovation of an existing house / flat. 

The actual loan amount is to be determined on the basis of repayment capacity taking into 

account income& age of the applicant (s) as under : 

I. For borrowers between 21 to 45 years of age : 

i) 60 times the net monthly income of the applicant in case of salaried persons (i.e. 

net of all deductions including loan repayments and actual monthly tax deductions 

at source). 

ii) 

5 times net annual income in case of others (i.e. income as per latest income tax 

return filed less loan repayments and taxes payable). For agriculturists, the 

annual net income should be arrived at by branches based on the nature of their 

activity (i.e. farming, dairy, poultry, orchards), land holding, cropping pattern, 

yield, etc. and average level of income derived there from in the area. 

II. For borrowers over 45 years of age : 

i) 48 times the net monthly income of the applicant in case of salaried persons (i.e. 

net of all deductions including loan repayments and actual monthly tax deductions 

at source). 

ii) 

iii) 

4 times the net annual income in case of others (i.e. income as per latest income 

tax return filed less loan repayments and taxes payable). For agriculturists, the 

annual net income should be arrived at by branches based on the nature of their 

activity (i.e. farming, dairy, poultry, orchards), land holding, cropping pattern, 

yield, etc. and average level of income derived there from in the area. 

In respect of loans where one of the joint borrower (s) is aged below 45 years, the 

eligible loan amount is to be computed aggregating as under: 

Borrower aged below 45 years 

Borrower aged 45 years and above 

60 times NMI / 5 times NAI 

48 times NMI / 4 times NAI 

However, repayment in the above case can be considered to the maximum period i.e. 20 

years. 

Income of the spouse 

Income of the spouse can be added while calculating the eligible amount where : 

i) the property is jointly held with the spouse and the spouse is a co-borrower; or 

ii) 

Expected Rental 

the property is held in single name and the spouse stands as a guarantor. 

The expected rental less taxes, cess, etc. in the case of house / flat being purchased, which 

is proposed to be rented out may be added for computation of the eligible loan amount. 

Other Income 

Regular income from all sources can be considered to arrive at total eligible loan amount, 

provided the sanctioning authority is satisfied about the proof of the income. 

5. MARGIN : The following minimum margins are prescribed : 

For purchase or construction of a new house / flat : 15% of the total project cost i.e. cost of 

land, additional amenities, registration amount, stamp duty, etc. 

For purchase plot of land and construction of a house (both) : 30% for purchase of plot 

which includes cost of land, stamp duty and registration etc. 

Crl. ADV-79 4

For construction purpose an overall margin of 15% of the project cost which includes cost of 

land. 

To purchase an existing (old) house / flat or extension of existing house : 20% margin. 

6. SECURITY : Equitable mortgage by deposit of title deeds should be obtained. The 

documents of the land / flat / house, etc. should be examined by the Bank’s advocate and a 

legal opinion must be obtained to the effect that the title is clear and valid equitable mortgage 

can be created. The memorandum relating to deposit of title deeds deposited at 

notified centers for creation of equitable mortgage should be invariably registered 

with concerned sub-registrars as advised vide Cir.No.ADV/32/2006-07 dated 20.09.2006. 

7. RATE OF INTEREST : The rates of interest are furnished here under : 

i. Upto Rs.1,00,000/- 11% 

ii. Above Rs.1,00,000/- to Rs.1,50,000/- 12% 

iii. Above Rs.1,50,000/- 

a. Loans repayable within 5 years 

Upto Rs.2,00,000/- 11% 

Above Rs.2,00,000/- 12% 

b. Loans repayable above 5 to 10 years 11% 

c. Above 10 years 12% 

8. FINANCE AGAINST PURCHASE OF HOUSE / FLAT FROM SOCIETIES : 

In the case of financing for purchase of house / flat from Societies branches would be 

required to retain the share certificate / allotment letter of the Society along with Bye-Laws of 

the Society concerned. 

As Societies come under State Cooperative Societies Act, the nature of title 

documents would vary and the property will not be transferred to the member-borrower and 

the property stands in the name of Society only and in some cases lease agreement will be 

executed. In such cases legal opinion obtained from the panel advocate has to be referred 

to the sanctioning authority with particular reference to lease agreement. However, 

branches should ensure that Societies should make a note of lien on the property of member 

borrower who availed loan with our Bank. 

The Society would also be required to be intimated of the Bank’s interest in the 

property advising them to send the documents evidencing title of the borrower direct to the 

Bank. Some security including third party guarantee may be taken during the construction 

period, wherever considered necessary to safeguard the Bank’s interest. No Objection 

Certificate should be obtained from the Society. 

9. PAPERS / DOCUMENTS TO BE SUBMITTED BY THE APPLICANT : 

‣ Savings Bank account to be opened invariably by every borrower duly complying 

with the KYC norms. 

‣ Duly completed application form – Annexure-A. 

‣ Passport size photographs (borrower (s) and guarantor (s)) 

‣ Proof of identify : 

o 

Voters ID Card / Passport / Driving license / PAN card. 

‣ Proof of residence : 

o 

Recent telephone bills, electricity bill, property tax receipt / passport / Voters 

ID Card. 

Crl. ADV-79 5

‣ Proof of business address for non-salaried individuals. 

‣ Sale Deed / Agreement of Sale. 

‣ Statement of Bank account / pass book for last six months. 

‣ Letter of allotment from Housing Board / Society etc. 

‣ Copy of approved plan (wherever applicable). 

‣ Permission for construction (wherever applicable). 

‣ Estimate / Valuation Report from approved valuers in respect of the property to be 

financed (wherever applicable). 

‣ Age of the building shall be certified by the approved valuer. 

‣ In case of conversion of agricultural land – copy of the relevant order. 

‣ Search report / non-encumbrance certificate for 13 years from Bank’s Advocate. 

‣ NOC under the provision of ULC Regulation Act, 1976 in original. 

From Employees 

‣ Salary Certificate from employer duly verified about the genuinity by the Branch 

Manager. 

‣ TDS Certificate – Form 16 or Copy of IT Return for the past two financial years, 

duly acknowledged by ITO. Branch Manager to verify the genuineness. 

‣ Where check-off is available 

o 

o 

o 

Irrevocable letter of authority – Annexure-D. 

Letter from employers – Annexure-E. 

Irrevocable Letter of Authority where applicant himself is Drawing and 

Disbursing Officers – Annexure-E1. 

From self employed / Other IT assessees 

‣ Three years IT returns duly acknowledged by ITO / assessment orders for 

computation of income. 

‣ Photocopies of challans of Advance IT paid. 

Where IT returns are not available 

The Branch Manager can consider the proposals in the absence of IT return on the basis of 

verifiable source of income for arriving at the eligibility of loan amount and certify the same 

and hold it on record. 

10. DOCUMENTATION : 

a) Memorandum of Term Loan Agreement for Housing Loan – Annexure-K. 

b) Guarantee Agreement, if applicable – Annexure-M. 

c) Formalities related to creation of equitable mortgage. 

d) Mortgage Deed to be executed by the borrower (only in the case of Registered 

Mortgage) – Annexure-L. 

e) Agreement to Mortgage, wherever a mortgage cannot be created immediately- 

Annexure-J. 

f) Documents in connection with pledge of other securities, where applicable. 

g) An arrangement letter as per Annexure-I. 

Crl. ADV-79 6

11. DISBURSEMENT : To safeguard the Bank’s interest and to prevent misuse of funds, 

disbursements should be made only in phases and should be co-related to the actual 

progress made in the construction e.g., at stages like completion of plinth construction of 

lintel level, completion of roof, etc. Branches may insist on a certificate from engineer 

architect of the borrower as regards the stage of completion of the project. Disbursements 

should be made only after the branch is satisfied about the proper use of funds. Inspection 

of the site also to be carried out during the course of construction. 

As regards loans for repairs / renovations / construction, etc., branches should satisfy 

themselves about the estimated cost of work involved having regard to the extent thereof, 

materials to be used, cost of labour and other charges and after obtaining certificate (s) of 

qualified engineers / architects as considered necessary. 

For purchase of plot of land and construction of house (both) : The plot loan should 

be released first and after mortgage of title deeds the loan for construction of house should 

be released as per the phase of construction of house. 

For purchase of an existing house / flat : The margin amount should be paid by the 

borrower into his loan account with the bank. The total amount i.e. margin and loan amount 

shall be directly paid to the seller by way of Banker’s Cheque / Demand Draft duly mentioned 

seller’s bank name, seller name and the account number. 

12. REPAYMENT : 

i) For purchase or construct a new house / flat. 

ii) 

iii) 

For purchase of an existing (old) house / flat or extension of existing house. 

For repair or renovate of an existing house / flat. 

For purchase of a ready built new house or flat the repayment starts immediately. 

For construction of a house or flat repayment starts 3 months from the date of completion of 

construction or 18 months from the date of release of 1 st instalment. 

The repayment by way of Equated Monthly Instalments (EMI) will be determined on 

the basis of the current rate of interest, as follows : 

Period : 

For applicants upto 45 years of age : Maximum of 20 years. 

For applicants over 45 years of age : Maximum of 15 years. 

Subject to the repayment of the loan being repaid before the borrower attains 70 years 

of age. 

Moratorium Period 

When financing is considered for ready built houses / flats and can be occupied immediately, 

repayment of EMIs will commence from the succeeding month after the month full 

disbursement has been made. 

Where loan is for construction of a new house / flat repayment starts with a 

moratorium period of 3 months from the date of completion of the construction or 18 months 

from the date of disbursement of 1 st instalment of loan whichever is earlier. 

Interest Moratorium 

The interest accrued during the moratorium period is to be included in the maximum 

repayment period of 15 years or 20 years, as admissible. 

iv) 

For purchase of plot of land and construction of house (both) : If construction is 

not taken up within six months repayment starts from 7 th month from the date of 

release of loan. 

Check-off facility : In the case of salaried persons, a check-off facility is preferable. 

Crl. ADV-79 7

Under the check-off arrangement, an irrevocable letter of authority is required to be 

obtained from the borrower (employee) concerned and a letter of undertaking from the 

employer also is to be taken as per Annexure-D & E. 

In case of Govt., officers, who are themselves the drawing and disbursing authorities 

and avail housing loans, separate undertaking letters to be obtained, as per Annexure E1. 

Post dated cheques 

Post dated cheques should be obtained invariably in all cases even where check-off facility 

is available and follow the instructions as per Annexure-III. 

13. PRE-PAYMENT CHARGES : 

i) A 2% prepayment charge will be levied on any amount prepaid in excess of the 

EMI payments and also pre-closure. 

ii) 

A 2% prepayment charges will be levied in case of closure of the account for 

reasons of take-over by any other bank / financial institution. 

However, this prepayment charges may be waived in case where the borrower is 

deceased, and / or where the original repayment schedule envisages a bullet 

repayment at the time of retirement. 

14. PROCESSING FEES 

Upto Rs.2.00 lakhs : Nil 

Above Rs.2.00 lakhs : 

0.50% (Subject to a maximum of Rs.10,000/-) 

In case of registered mortgage the stamp duty, registration fees and any other 

expenses arising out of it should be borne by the borrower. 

Once the account becomes an NPA, a fresh Search Report should be obtained from 

the Bank’s advocate preferably from a different advocate and all the charges to be borne by 

the borrower. 

15. INSURANCE : The house / flat purchased / constructed should be insured against 

the risk of fire / riots / earthquakes / lightning, floods, etc., in the joint names of the borrower 

and the Bank for the full market value of the property or the outstanding loan amount, 

whichever is higher. A copy of the policy is to be retained with the Bank. The borrowers may 

be encouraged to obtain insurance for the full estimated period of the loan (Single- Premium 

Policy) to be able to avail substantial discounts offered by insurance companies. This would 

also reduce Bank’s follow-up costs. 

16. INSPECTION : Pre-sanction & post-sanction inspections to be carried out and to be 

recorded in the inspection register. 

Appropriate noting to be done in the Inspection Register for having conducted for all 

subsequent inspections. 

Every 3 years for Standard Assets. 

If the EMIs are not forthcoming for the two successive months inspection would be 

required immediately. 

For NPAs : At quarterly intervals. 

17. DISCRETIONARY POWERS : For sanctioning of Housing loans the existing 

discretionary powers from Scale-I to Scale-III is mentioned as under : 

JMGS-I : NIL 

MMGS-II : Rs.1.00 lakh 

MMGS-III : Rs.3.00 lakhs 

AM : Rs.3.00 lakhs 

GM : Rs.25.00 lakhs 

Crl. ADV-79 8

HOUSING LOAN SCHEME – DOs AND DON’Ts 

ANNEXURE - II 

Inspite of circular instructions issued from time to time branches are not adhering to circular 

instructions thereby resulting in loss of opportunity for business development and in some 

cases resulting in frauds / failure of advances etc., . Keeping in view of the field level 

experiences we furnish hereunder some of the Dos and DON’Ts for the information 

/guidance of the branches. The list is illustrative but not exhaustive and the branches are 

advised to take appropriate steps in safeguarding the advances. 

DOs 

Selection of the borrower 

‣ Satisfy thoroughly about the antecedents of the applicants. If the applicant is a 

person of integrity, the burden on the branch will be much less in the matter of all 

other verifications. 

‣ Verify if the borrower is having an account with the branch. Ger invariably a Savings 

Bank account opened by strictly following the KYC norms. If he is already having an 

account with any other branch of our Bank, obtain full details of the account and 

satisfy that the account was opened by observing KYC norms. If it was an account 

opened before the introduction of KYC norms, get the KYC verification done now. 

‣ Call for the confidential report from the Bank where the applicant is maintaining his 

account (in case he is not our customer). 

Verification about the borrower 

‣ Pre-sanction and Post-sanction inspections are strictly to be carried out and record in 

inspection register. 

‣ Personally visit the office and residence. Preferably, visit once again, this time by 

way of surprise. 

‣ Obtain the photographs of guarantor and borrower. 

‣ Obtain confirmation from the salary disbursing authority about the genuineness of the 

salary certificate and Form 16 if borrower is an employee. 

‣ Obtain IT Assessment Orders / Returns for the last 3 years if the borrower is not an 

employee. Ensure that the IT returns for all the 3 years are not filed on the same 

day. If they are filed on the same day, it may be a case where the applicant is trying 

to increase his entitlement of the loan amount. 

Verification of title 

‣ Obtain documents such as Agreement of Sale, title deeds, link documents, etc. and 

forward to the Advocate/s report directly and not through the borrower. Make 

payment of fees to the Advocate directly from the Bank. 

‣ Insist on the proof of personal search by Advocate at the Sub-Registrar’s office and 

also a certificate from the Advocate to that effect. 

‣ If necessary Branch Manager / Field Officer to verify the title deeds / sale deed with 

the Sub-Registrars office to avoid / guard against fake title deeds / fake sale deeds, 

fabrication of documents / title deeds. 

‣ Make sure that the Legal Scrutiny report satisfies various requirements of the Bank 

as per the guidelines. 

Verification of document 

Crl. ADV-79 9

‣ Verify the genuineness of the parties involved in the Agreement of Sale and 

connected documents by visiting the Builder’s office independently and 

unaccompanied by the borrower or the so called builder / owner. This will take 

care of impersonation. 

‣ Guard against documents prepared by colour photo copying. 

‣ Guard against fake document by thorough scrutiny. Personal search at Sub- 

Registrar’s Office will help. Search is easier where the records at the Sub-Registrar’s 

office are computerised. 

‣ Guard against ‘duplicated’ (prepared again) documents copying all details from an 

actual title deed, by forging the seals, signatures of the sub-registrar and also the 

seller. Verification of the sale deed at the Sub-Registrar would help. In computerised 

Sub-Registrar’s office the sale deed can be seen on the screen as all the documents 

are scanned and stored. 

‣ When the loan is in excess of Rs.15.00 lakhs, apply directly to Sub-Registrar for a 

certified true copy of the document in question. 

‣ Guard against duplicate title deed. Fraudsters approach for loan with duplicate copy 

of the title deed. Any number of copies of the title deed can be obtained at the time 

of registration by paying appropriate fees. However, the Sub-Registrar marks the 

copies as ‘Duplicate’, ‘Triplicate’, etc. By carefully examining the document, this 

can be found out. 

‣ Xerox copy of the title deed initially submitted must be compared with the original at 

the time of creating the Equitable Mortgage. 

‣ While accepting Settlement / Gift Deeds for creating equitable mortgage, insist for the 

original Link documents. 

Verification of the property 

‣ In the case of construction of a house on a plot of land, make sure that the 

construction is taking place on the piece of land mortgaged to the bank and not on 

any other piece of land. (In another Bank, a borrower cheated the bank by using the 

loan amount to construct the house on the piece of land in the name of his wife which 

was just adjacent to his plot which was mortgaged to the bank). 

‣ Visit the property proposed to be purchased with the Bank’s loan and satisfy about 

the existence of the property and reasonableness of the value quoted before 

releasing the loan. The visit must be made once more without being accompanied 

by the borrower. 

‣ If the loan is for purchase of an existing flat / house already occupied, speak to the 

inmates of the house to verify the name of the owner, etc. and satisfy by verifying the 

tax paid receipts, electricity bills, water bill, etc. If the inmates of the house cooperate, 

enquire with them regarding any dispute / litigation with the present owner 

(seller) and any objection to vacate the house. 

‣ A route map to the location of the property prepared by both the valuer and also the 

branch official must be held on record. 

‣ Verify the accessibility / approachability to the site before considering the loan. 

Disbursement 

‣ Margin to be routed through the Bank. 

‣ Make the Banker’s Cheque in favour of Seller’s Bank Name, Seller’s Name and 

Account Number also if furnished. 

Crl. ADV-79 10

‣ Hand-over the Banker’s cheque to the vendor at the time of registration at the Sub- 

Registrar Office, by obtaining due authorisation from the borrower while releasing the 

loan. 

‣ Collect the registered sale deed directly from the Sub-Registrar, by obtaining due 

authorisation from the borrower at the time of releasing the loan. 

‣ Fresh encumbrance certificate be obtained before release of the loan. 

‣ Put through the mortgage at the earliest, after obtaining latest encumbrance 

certificate. 

‣ Wherever the payment is made directly to the seller, the payment details such as 

Banker’s Cheque number, date and amount must be mentioned in the sale deed to 

evidence the fact that the property was purchased out of Bank’s finance. 

DON’Ts 

‣ Do not entertain any proposal brought by middlemen by whatever name they are 

called i.e. Consultants, etc. 

‣ Do not sanction any loan unless the borrower has an account or opens an account 

with the Bank. 

‣ Do not handover the title deeds, etc. to the borrower for being taken to the Advocate 

on Panel. 

‣ Do not handover the Banker’s Cheque representing the loan amount to the borrower, 

but send it directly to the seller. 

‣ Do not allow the borrower to collect the registered document from the office of the 

Sub-Registrar, but send an official of the Bank. 

‣ Do not accept the introduction of the borrower/s by the employer other than State / 

Central Govt., Public Sector and reputed joint stock companies, if he is not a 

customer of the branch. 

* * * 

Crl. ADV-79 11

ANNEXURE-III 

Branches are advised to follow the following guidelines, where Postdated cheques are 

obtained for repayment of PER advances. 

i) NUMBER OF CHEQUES TO BE OBTAINED : Cheques to be invariably obtained for 

covering the full repayment period. Cheques should be scrutinised to ensure that these are 

properly filled in. The special “Crossing Seal” would be required to be put on the face of 

the cheque before keeping them in custody. 

ii) 

iii) 

iv) 

DATE OF POST DATED CHEQUES : Date of cheques should synchronise with credit of 

salary/rent etc., wherever payment of post-dated cheques is to be contingent upon such a 

credit to the account. In other cases, where the deposit account of the borrower has 

sufficient credit, atleast during the first fortnight of the month, the cheques should be dated 

prior to the 7 th of every month. 

The branches should put through the cheques on 4 or 5 fixed dates in a month, preferably 

before 15 th of the month, so that the task is not spread over the whole of the month and 

administration thereof does not dislocate the work. 

DIARISATION : A suitable diary to be maintained for the post dated cheques obtained 

date wise so as to ensure compliance promptly. 

CUSTODY : Post-dated cheques should not be retained along with the security documents 

to avoid unnecessary handling of documents. These should be retained by the Branch 

Manager or Accountant and placed in a fire proof safe / locker. 

v) HANDLING OF CHEQUES RETURNED UNPAID : Should any cheque be received 

unpaid from the paying banker for want of sufficient funds, the borrower should be 

immediately contacted. The cheque should be re-presented within a period of three days 

of its having been returned unpaid on a written request of the borrower. In the event of the 

borrower failing to deposit the amount of the cheque, the under noted procedure for 

initiating legal action under Section 138 of Negotiable Instruments Act, 1881, should be 

initiated: 

Steps to be taken when a cheque is dishonoured on account of : (a) insufficient funds (b) 

closing of the account (c) stop payment of the cheque (on account of insufficient funds). 

STEP-1 : When the cheque is dishonoured the branch has to give a notice in writing to 

the drawer within 15 days of the receipt of information by it from the bank regarding the 

return of the cheque. Enter in the separate register for this purpose and monitor. 

STEP-2 : If drawer fails to make the payment of the said amount of money to the bank 

within 15 days of the receipt of the notice mentioned in Step-1, proceed to Step-3. 

STEP-3 : File a complaint before the Metropolitan Magistrate or First Class Magistrate, 

within one month from the date of cause of action. 

Example : Cause of action arose of 01.01.2001, under Step-2 (that is failure to pay within 

time mentioned there) file the complaint on or before 31.01.2001. 

STEP-4 : During the pendency of the complaint if the drawer desires to compound the 

offence, branch can withdraw the complaint on receipt of the amount of the cheque, 

interest, legal cost and other expenses. 

It may, however be noted that the initiation of legal action is a measure of last resort and all 

efforts should be made to contact the borrower to regularise the position. However the one 

month time limit shall not be allowed to be exceeded under any circumstances 

(except under instructions from the Controlling Office). 

ANNEXURE-IV 

RBI INSTRUCTIONS TO IMPLEMENT DELHI HIGH COURT ORDERS ON HOUSING LOANS 

Crl. ADV-79 12

HOUSING LOANS - ORDERS OF THE DELHI HIGH COURT – WRIT PETITION BY 

KALYAN SANSTHA WELFARE ORGANISATION AGAINST UNION OF INDIA AND 

OTHERS – IMPLEMENTATION OF DIRECTIONS. 

* * * 

During the hearing in the captioned Write Petition, the Hon’ble High Court of Delhi has 

directed as under: 

“We here by direct that henceforth banks will check whether the loan sought for is for 

authorised structure or an unauthorised structure and the Banks will obtain an undertaking 

on an affidavit from the parties seeking such loans that the building is constructed as per 

sanctioned building plans. Banks shall also ensure that the sanctioned building plans are 

attached with the undertaking”. 

2. In this context, the Monitoring Committee constituted by the Hon’ble High Court of Delhi 

regarding Unauthorised Construction, Misuse of Properties and Encroachment on Public 

Land, has issued the following directions for immediate compliance by the Banks / Financial 

Institutions: 

A. Housing Loan for building construction 

i) in cases where the applicant owns a plot / land and approaches the banks / FIs for a 

credit facility to construct a house, a copy of the sanctioned plan by competent 

authority in the name of a person applying for such credit facility must be obtained by 

the banks / FIs before sanctioning the home loans. 

ii) An affidavit-cum-undertaking must be obtained from the person applying for such 

credit facility that he shall not violate the sanctioned plan, construction shall be 

strictly as per the sanctioned plan and it shall be the sole responsibility of the 

executant to obtain completion certificate within 3 months of completion of 

construction, failing which the bank shall have the power and the authority to recall 

the entire loan with interest, costs and other usual bank charges. 

iii) An architect appointed by the Bank must also certify at various stages of construction 

of building that the construction of the building is strictly as per sanctioned plan and 

shall also certify at a particular point of time that the completion certificate of the 

building issued by the competent authority has been obtained. 

(clauses ii & iii are not applicable for the loans sanctioned in Rural & Semi-urban areas). 

B. Housing Loans for purchase of constructed property / built up property 

i) In cases where the applicant approaches the banks / FIs for a credit facility to 

purchase the built up house / flat, it should be mandatory for him to declare by way of 

an affidavit-cum-undertaking that the built up property has been constructed as per 

Crl. ADV-79 13

the sanctioned plan and / or building bye-laws and as far as possible has a 

completion certificate also. 

ii) An architect appointed by the bank must also certify before disbursement of the loan 

that the built up property is strictly as per sanctioned plan and / or building bye-laws. 

C. No loan should be given in respect of those properties which fall in the category of 

unauthorised colonies unless and until they have been regularized and development and 

other charges paid. 

D. No loan should also be given inrespect of properties meant for residential use, but which 

the applicant intends to use for commercial purposes and declares so while applying for 

loan. 

3. Although the above instructions were issued in the context of a write petition in the Delhi 

High Court, all the banks are advised to strictly comply with the above directions with 

immediate effect. 

* * * 

Crl. ADV-79 14

APPLICATION FORM FOR HOUSING LOAN 

(for public) 

Place: 

Date: 

The Branch Manager 

Deccan Grameena Bank 

____________________ Br. 

ANNEXURE-A 

Dear Sir, 

HOUSING LOAN 

I hereby apply for a Housing loan of Rs.______________ (Rupees _______________ 

________________________________________________________________ only) for 

acquisition / construction of house / flat / additions thereto in my own name for the bonafied 

use of myself and my family members, details of which are furnished hereunder in the 

attached statement. 

I undertake to abide strictly by all the terms and conditions stipulated by the Bank and any 

modifications thereto made hereafter from time to time. All other rules and regulations of the 

Bank applicable to the aforesaid loan will be observed by me and the instructions issued by 

the Bank from time to time will be adhered by me. I also declare that I am in a position to pay 

an estimated amount of Rs. _____________/- (Rupees ____________________ 

____________________________only) towards the cost of construction /acquisition / 

purchase of a flat / house / additions thereto. 

I also certify that the particulars given in the attached statement are correct and nothing has 

been concealed by me, which would prejudice or affect my right to apply for loan from the 

Bank. 

Yours Faithfully, 

(Signature) 

Address: 

Crl. ADV-79 15

(HOUSING LOAN FOR PUBLIC) 

STATEMENT GIVING ALL THE INFORMATION / PAPERS / 

DOCUMENTS FOR AVAILMENT OF LOAN 

ANNEXURE-B 

1) Full name : 

Address–permanent : 

Local : 

Indicate whether belonging to scheduled caste / Scheduled Tribe / other economically 

weaker sections / low income groups other categories (certificate to be enclosed) 

2) Age as on the date of application 

(give also date of birth : 

3) Occupation (Service or otherwise) : 

a. If service : 

i. Date of joining his employers 

And their name : 

ii. Date of confirmation : 

iii. Designation : 

iv. 

Department / Branch 

v. Total service as on the date of 

application (including probationary 

period but excluding temporary service) 

vi. 

Total span of service 

(in case of contract) 

vii. Total monthly emoluments : 

viii. 

Certificates / proof in respect of 

above are attached 

b. Other occupation 

i. Nature of occupation / vocation : 

ii. 

Name of the firm associated with if any: 

iii. Address of the above establishment : 

iv. Date of commencement of vocation : 

v. Total period in the vocation : 

vi. 

vii. 

Monthly income (give proof) 

Banking connections 

(i) With Deccan Grameena Bank 

(nature of accounts maintained give details) 

(ii) With other Banks (Nature of a/c give details) 

4) Amount of the loan applied for : 

5) Whether the applicant in the past has 

applied for a loan, if so, give details 

Crl. ADV-79 16

6) (a) Details in respect of the house / flat, 

bought/constructed / proposed to be 

bought / constructed. 

(i) 

(ii) 

Situated at 

Whether the applicants’ membership in 

the society is approved? If so, a true 

copy of such allotment letter as per 

specimen marked ‘A’ should be attached 

(iii) Where the construction of the house / 

Flat by the society is completed, the 

Government approved valuer’s report should 

be submitted. 

(iv) (i) Plinth Area : 

(ii) Carpet area 

(b) Where an independent house / 

structure is purchased / to be purchased 

i) name (s) of the vendor (s) 

and relationship with the applicant, if any 

ii) name of the building / house : 

iii) where situated : 

iv) land lord (s)’ / vendors (s)’ letter as per 

specimen ‘A’ offering a house building etc., 

v) (i) Plinth area : 

(ii) carpet Area : 

(c) Where construction on the plot of 

land owned is contemplated : 

i) Details of deed of conveyance certified 

by the Bank’s local advocate in respect 

of the land / plot purchased (copy enclosed) 

ii) Is the land converted into 

non-agricultural land? If so, please 

attach a copy of the relative 

order duly certified 

iii) Is the N.O.C obtained by the vendor (s) 

under the provisions of the Urban Land 

(Ceiling and Regulation) Act, 1976 if so, 

please attach a copy thereof duly certified. 

iv) Whether the plot is fully developed? 

If not, the estimated expenditure, who will 

bear the cost? Vendor (s) or the applicant. 

v) Total plinth area of the House : 

vi) Total carpet area of the House : 

vii) Blue prints of the plot of land and 

house prepared by the Architects as 

submitted to the Municipality should be 

enclosed. (If the plans have been 

Crl. ADV-79 17

approved by the Municipality, a copy 

of the relative sanction certified as a 

true copy by the applicant’s Architects 

should be attached) 

viii) Details of the amenities provided / 

proposed to be provided in the House 

7. Whether the society’s /Landlord’s / Vendor’s title to the property /flat/ house/ is clear and 

marketable, free from encumbrances and debts (A certificate to this effect from the local 

Advocate of the Branch where from the applicant will obtain the loan should be attached. 

8. The amount the applicant will have to pay from 

his own recourses after taking into consideration 

the Bank’s loan for which he has applied. : 

9. An irrevocable letter of authority in duplicate as 

per Annexure : 

10. Municipality taxes / levies etc. approx per month 

in respect of the house flat. 

11. Betterment charges where 

: Rs. 

a. Plot of land acquitted for construction thereon : Rs. 

Flat to be purchased/acquired construction which 

is in progress. (A certificate, should be attached 

form the Bank’s local advocate whether the land 

falls in a Town planning scheme and any 

betterment charges are payable thereon). 

12. Proper approach road and water available where : 

a. Plot of land acquired for construction thereon : 

b. Flat to be purchased/acquired construction of 

which is under progress : 

c. House to be acquired (A certificate should be 

attached from the applicant’s/builder’s Architect 

stating that there is proper authorised approach 

road to the house/ building and water is available 

for drinking and construction purpose. 

13. Schedule of disbursement where the construction 

is under progress and the loan will be disbursed 

in instalments (A statement should be attached, 

the applicant’s / Society’s/ Builder’s architects 

detailing the stages of works required to be 

completed and showing there against the 

instalments of the loan to be released thereafter) : 

14. Any other information : 

15. Name of the relative, if any, in the Bank. At which 

place posted and nature of their relationship. 

16. I hereby declare that 

i. I do not own any residential accommodation 

in the name of myself / my spouse / my 

dependent / my children. : 

: Rs. 

Crl. ADV-79 18

ii. 

iii. 

My wife / husband is not employee of the 

Bank. : 

The total cost of the House or flat proposed to 

be constructed / acquired (including the cost 

of the land) will not exceed Rs. 

_______________________ __________ 

(details given in Annexure) : 

iv. The house / flat to be constructed / acquired / 

enlarged with the help of the loan availed of 

from the Bank will not be utilised as source of 

income or profit except to such extent and for 

such period as the Bank may permit and my 

other recourses together with the amount of 

the loan applied for as detailed below will be 

sufficient to complete the “construction / 

acquisition of the proposed house /flat / 

enlargement of the present accommodation..” : 

a) Amount of housing loan as per this 

application 

: Rs. 

b) Personal savings : Rs. 

c) Other resources (give details and how they 

are acquired) 

TOTAL 

Total estimated cost of the acquiring / 

constructing / enlarging the house / flat 

: Rs. 

: Rs. 

: Rs. 

Date: 

Signature 

Name 

Address 

Crl. ADV-79 19

(May be given on letter head of Government approved valuers) 

Valuation report on the property belonging to _______________________________ 

1. Valuation done by : 

2. Date of valuation : 

3. Name(s) of person or persons in whose 

name(s) the property stands registered 

ANNEXURE-C 

4. Survey No._________________ and Municipal No._________________ of the property 

5. Situation of the property : 

6. Whether leasehold or freehold : 

7. Municipal valuation for tax purpose 

(if available) 

8. Area of land : 

9. Value of land : 

10. Built up area of the building/flat/apartment : Sq.Mtrs. 

11. Carpet area : Sq.Mtrs. 

12. Value of built up area : 

(Note : While arriving at the approximate cost of the built up area, the rate of current cost 

of construction to cubical contents of the building may be taken into consideration) 

13. Please state the nature of construction viz., whether it is built up with R.C.C. or stones or 

bricks. Please also give some idea about the kind of fittings used in the building, 

whether flouring is of ordinary kind or whether there are any special or costly fittings. 

Also, whether there is independent water supply, other amenities etc. 

14. Year in which the property was constructed : 

15. Total value of the property : Value of land : Rs. 

16. From the above, please deduct depreciation 

(It should be arrived at after taking into 

account the age and life of the building) 

Value of built up area : Rs. 

17. Please state if entire property is used, by owners themselves or hired out to tenant. 

Place : 

Date : 

Signed by 

Crl. ADV-79 20

BRANCH MANAGER’S CERTIFICATE 

ANNEXURE-C-I 

This is to confirm that I, ______________________________ Branch Manager, 

___________________ Branch have personally inspected the immovable properties 

situated at on _____________________ the particulars of which are described below: 

PARTICULARS OF THE PROPERTY 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

_______________________________________ 

The above properties are offered by the borrower / guarantor as security for securing the 

credit limits availed / to be availed by _________________ I have enquired the valuation of 

the properties form the market sources locally and from the owner of neighbouring properties 

and satisfied that the valuation mentioned by the approved valuer in his report is realistic / 

conservative and as per the existing market value. 

BRANCH MANAGER 

Crl. ADV-79 21

(To be stamped as an agreement) 

ANNEXURE-D 

LETTER OF AUTHORITY TO BE OBTAINED FROM THE EMPLOYEE APPLICANT 

From 

__________________________ 

__________________________ 

__________________________ 

Dear Sir, 

Place : 

Date : 

To 

_____________________________ 

_____________________________ 

_____________________________ 

(Address of the pay disbursing authority 

and the Office) 

SCHEME FOR HOUSING LOAN FOR PURCHASE / CONSTRUCTION OF A 

FLAT/HOUSE/ADDITIONS – LOAN ACCOUNT NO._________________ 

1. I, Smt/Sri/Kum.______________________________, S/o.W/o.D/o._________________ 

_____________________ the undersigned an employee of your organisation. 

2. (a) I hereby authorise you to recover by deduction from my salary payable to me by you, 

a sum of Rs._____________ (Rupees _________________ _________________ only) 

every month representing the monthly instalment payable by me to the Deccan 

Grameena Bank, _____________________ branch in respect of Housing loan availed 

by me from the Bank and remit the amount to the aforesaid branch of the Branch. 

(b) I hereby authorise you to credit/continue to credit my salary to Deccan Grameena 

Bank, __________________ Branch payable to me by you every month, since I have 

undertaken to repay the Housing Loan taken by me from Deccan Grameena Bank, 

______________ branch. 

3. In case of my death, retirement, resignation or discontinuing the service for any reason 

whatsoever hereby authorise you to pay any amount payable on my account by reason 

aforesaid, to Deccan Grameena Bank, ____________________ Branch towards the 

balance outstanding in the aforesaid loan account. Such payment shall be deemed as a 

payment to me or on my account. 

4. I hereby agree that I shall not be entitled to withdraw or revoke the authority even in case 

of my transfer, until the whole of my debt inclusive of interest to the Deccan Grameena 

Bank, ______________________ Branch is liquidated, and written consent of the Bank 

is obtained. 

Yours faithfully 

Witness : Signature (Signature of the applicant) 

Full Name 

Full Name 

Designation 

Designation 

Branch 

Branch 

Note : Delete 2(a) or 2(b) whichever is applicable. 

Crl. ADV-79 22

LETTER OF UNDERTAKING FROM THE PAY DISBURSING AUTHORITY 

ANNEXURE-E 



__________________ Branch 

Dear Sir, 

SCHEME FOR HOUSING LOAN FOR PURCHASE / CONSTRUCTION OF A FLAT / 

HOUSE / ADDITIONS 

Sanctioned to Sri __________________________ S/o. ______________________ 

Account to _______________________ 

1) We certify that Sri / Smt. _______________ S/o./W/o. Sri ____________ is a permanent 

employee of this department / establishment drawing gross salary of Rs. ____________. 

2) In view of your agreeing to advance Rs.___________________________ to Sri / 

Smt.____________________ under the captioned scheme, we have received and noted 

i. the irrevocable letter of authority from the employee, for deducting a sum of 

Rs._____________________ from this salary per month beginning from the salary for 

the month of ___________ 20 ___ and remit the same to you for crediting to his loan 

account till we receive further instruction from you. 

ii. 

iii. 

iv. 

the irrevocable letter of authority from the employee, for crediting his / her salary every 

month to his / her account with Deccan Grameena Bank ________________ Branch, 

till we receive further instructions from you. 

The irrevocable letter of authority in respect of making payment of any amount payable 

to the employee in case of his / her death., retirement, resignation or discontinuing the 

service for any reasons whatsoever to Deccan Grameena bank 

___________________ Branch towards the balance outstanding in the aforesaid loan 

account, as such payment shall be deemed to be a payment to the employee or on his 

account. 

The employee agrees that he / she will not be entitled to withdraw or revoke his / her 

authority even in case of his / her transfer, until the whole of his / her debt inclusive of 

interest to the Deccan Grameena Bank _______________ Branch is liquidated and 

written consent of the Bank is obtained. 

3) As requested by the employee, we will deduct the amount from the salary / other dues 

payable to him and deposit it with _______________ branch. In the event of transfer of 

Crl. ADV-79 23

the employee else where, we undertake to convey the instructions to the transferee office 

under advise to you immediately. 

4) In case the employee renders his /her resignation from service, the same will not be 

accepted by us until the “No-objection Certificate” signed by your Bank is produced to us. 

5) If we decide to terminate the services of the employee, we shall advise you immediately 

of our proposed action and shall not settle his /her claims until the “No-objection 

Certificate” from your bank is produced to us. 

Seal & Date 

Pay / 

Signature of the officer 

(Authorised to disburse salary & allowances) 

Crl. ADV-79 24



_________________ Branch 

ANNEXURE-E1 

Dear Sir, 

SRI / SMT. _________________________ S/O. W/O. SRI ____________________ 

IRREVOCABLE LETTER OF AUTHORITY – HOUSING LOAN SCHEME. 

I intend to avail / have availed the benefit of aforesaid scheme. At present I am serving as 

________________ in ______________ Department at ___________. I am authorised to 

draw and disburse my own salary along with the salaries of the employees working in this 

office / establishment / department. 

It undertake to deposit my salary supported by the pay bill every month for credit to the 

savings bank / current account maintained at your branch till liquidation of the amount 

advanced to me with upto dated interest etc., 

It further authorise you to deduct a sum of Rs.__________ per month beginning from the 

salary for the month of __________ 200 _____, from the aforesaid account for adjustment 

towards the balance outstanding in the loan account till liquidation. 

I hereby authorise Deccan Grameena Bank, ________________ branch to collect and 

receive any amount payable towards provident fund, gratuity, pension or similar dues on my 

behalf in the event of my retirement / resignation / termination or discontinuation of my 

service for any reason whatsoever. 

I further, agree that the aforesaid authority shall be irrevocable till the entire amount of loan 

together with interest stands liquidated. 

I further undertake to execute necessary authorisations / documents as deemed just and 

necessary by the bank in accordance with the scheme in the event of my ceasing to be 

drawing and disbursing authority by virtue of my transfer or otherwise. 

SIGNATURE OF THE OFFICER 

(Authorised to disburse 

salary and allowance) 

Date: _____________ 

Crl. ADV-79 25

TO BE TYPED ON THE LETTER HEAD OF SOCIETY / BUILDER 

(to be stamped as an agreement applicable in the State) 

ANNEXURE-F 

NO OBJECTION/ CONFIRMATION LETTER FROM THE BUILDER / VENDOR 

To, 



_________________ Branch 

Dear Sir, 

AGREEMENT OF SALE DATED ………………………………… ENTERED WITH SRI 

………………………………………………… EMPLOYEE OF DECCAN GRAMEENA BANK 

HYDERABAD-BANK’S LIEN 

1) I/ We _________________________ S/o. ______________________ entered into an 

Agreement of Sale with Sri ______________________ S/o. _______________, 

employee of Deccan Grameena Bank, for sale of Flat / Apartment No.__________ in 

________________ Apartments, situated at ____________________________) (a copy 

of which is enclosed herewith) the construction of which is being done by us and the 

construction is under progress. 

2) We are aware that Sri __________________________ S/o.___________________ 

offered the said flat as security for the housing loan availed / being availed by him from 

your Bank and Bank as such has got lien on the said flat for monies disbursed by you to 

us till the execution of the sale deed by us in favour of the employee. We have no 

objection whatsoever to Sri / Smt./ Kum.______________________ mortgaging the flat / 

house to Deccan Grameena Bank as security for the amount advanced by the Bank. 

3) Further, we undertake that not withstanding any thing contained in the aforesaid 

Agreement of Sale dated _______________, we will not cancel the Agreement of Sale 

entered with Sri ___________________________ S/o. __________________ employee 

of your Bank, in case of any default on his part in due performance of the covenants of 

the said Agreement without giving notice to the Bank with sufficient time to set right the 

said default by the employee. 

4) Further, not withstanding anything contained in Agreement of Sale dated 

____________________, I / we undertake to refund to you the amount received by us 

Crl. ADV-79 26

from you without any deduction whatsoever, in case of cancellation of agreement after 

expiry of the said notified period. 

5) We also under take to inform about the execution of the Sale Deed as and when it takes 

place. 

6) We also undertake to complete the construction strictly in conformity with the 

specification and within estimate of total cost which is enclosed herewith. No alteration 

will be made by us without your consent in writing. The total bill amount / construction 

amount will not exceed the final confirmed estimate of Rs.______________, we also 

agree to be paid by actuals within the estimate provided by you / or based on the 

measurement / calculations. 

7) We hereby certify, confirm and affirm that title to the said land and the building thereon is 

clear, marketable and free from all encumbrances and debts. 

8) We also confirm that we have not borrowed from any Financial Institution for purchase of 

land or construction of building and have not created will and create any encumbrances 

on the flat / house allotted to him / her during currency of the loan sanctioned / to be 

sanctioned by the Bank to him / her. 

9) We are agreeable to accept Deccan Grameena Bank as a nominee for the flat / house 

allotted to Sri / Smt./Kum. ______________________ and once the nomination favouring 

the Bank has been registered and advice sent to the bank of having done so, we note not 

to change the same without the written consent of the Bank. 

10) We agree to show the original documents of title to the land on which the said flat under 

reference is being constructed for its verification and examination as and when required 

and the said documents will be held by us in trust on behalf of all the flat owners until 

registration of the flats in the names of respective purchasers. 

Thanking You, 


Signature 

Crl. ADV-79 27

CREDIT / OPINION REPORT 

(Collect all relevant details) 

ANNEXURE-G 

Name of the Applicant : 

PERSONAL ASSETS AND LIABILITIES 

a) Immovable Properties 

1. Location : 

2. Survey No. : 

3. Extent of land : 

4. If encumbered to what extent : 

5. Personal/Family/ancestral/Self acquired: 

6. Value : Rs. 

b) Movable / Liquid assets 

1. Cash and bank Balance : Rs. 

2. Govt. Securities : Rs. 

3. Shares : Rs. 

4. LIC Policies : Rs. 

5. Gold and jewellery : Rs. 

6. Investments : 

i. Business : 

ii. Others (Specify : 

7. Vehicles (Car / two wheeler etc.) : 

8. Other assets (specify) : 

c) Total Value of Assets 

d) Liabilities 

1. Borrowing from bank (s) : Rs. 

2. Borrowing from others : Rs. 

3. Borrowing from others sources : Rs. 

e) Total liabilities : Rs 

f) Net worth : Rs. 


Crl. ADV-79 28

BRANCH : ______________________ 

ANNEXURE-H 

PER ADVANCES – TERM LOANS: HOUSING LOAN APPRAISAL 

(UNDER PUBLIC HOUSE LOAN SCHEME) IN RESPECT OF 

SRI _____________________________ FOR RS.________________ 

1. Applicant’s Name : 

2. Father / Husband’s Name : 

3. Age : 

4. Address Present : 

Permanent : 

5. Occupation : 

6. No. of dependents : 

7. Date of Municipal /Grampanchayath approval 

(copy of the approved plan duly certified by 

the B.M to be enclosed) 

8. Amount of loan : 

9. Monthly Gross income from all sources 

(Salary certificate / I.T. assessment order 

copy to be enclosed for proof of income) 

10. Monthly net income : 

11. 50% of Net income 

(instalment & interest obligation should 

not exceed 50% of net) 

12. Gross income : 

13. Particulars of other liabilities, if any : 

14. Approximate time required to complete 

the house 

15. Gestation period required ______ month : 

16. Reasons for gestation period ______ month : 

17. Repayment period proposed 

(excluding gestation period) : 

18. Interest rate : ______ % plus interest tax as 

applicable from time to time. 

19. Repayment proposed : 

a. Principal : 

Crl. ADV-79 29

. Interest : Rs. 

(interest should be paid as and when 

debited to the account) 

c. Total : Rs. 

(Total amount should not exceed the 

amount mentioned in col.no.11 above) 

20. Plinth area of the house : 

21. Estimated cost of the house : Rs. _________________ 

(whether estimates are reasonable as per 

the prevailing market rates) 

22. Applicant’s margin : _______% i.e. Rs.___________ 

23. Source form where the applicant can meet 

the margin requirements : Source Amount 

a) 

b) 

c) 

24. Security proposed : Description Value (Rs.) 

a. Primary 

b. Collateral 

(full particulars of property such as S.No. 

/Plot No.Door No., extent etc) 

c. Third party guarantee 

(Net worth and value of I.P.) 

25. Value of connection 

(is he/ she maintaining any account with 

our branch (s) please specify nature of 

accounts with account number) 

26. Whether undertaking form the employee to 

deduct monthly instalments from the salary 

of the borrower is obtained : 

if Yes – date of undertaking 

if No – reasons for not obtaining the 

undertaking to be furnished 

27. Recommendations 

(covering the length of dealing of the party, 

his status, usefulness to the Bank etc.) 


Crl. ADV-79 30

ARRANGEMENT LETTER – HOUSING FINANCE 


_________________________ Branch 

_________________________ Date : 

ANNEXURE –I 

To, 

Sri / Smt / Kum _________________________ 

1) ____________________________________ 

2)_____________________________________ 

Dear Sir, 

PERSONAL SEGMENT ADVANCES – HOUSING LOAN Rs._________________ 

*** 

With reference to your application for Housing Loan dated _________________ we hereby 

sanction you a Housing Loan Limit of Rs.____________________ (Rupees _____________ 

________________________________only) on the following terms and conditions, 

(Exercise of option provided in paragraph 11 is mandatary). 

2) Purpose 

The loan is sanctioned to you for the purpose of purchase / construction / extension / 

Repairs / renovation of new / second-hand residential house / flat / (hereinafter referred to as 

the project) at the following address: 

_________________________________________________________________________ 

_________________________________________________________________________ 

3) Margin _________% of the total cost of the project. 

4) Rate of Interest : 

Interest on the amount of the loan will be applied at the rate of _______ per cent with a 

minimum interest rate of ______% p.a. rising and falling therewith at monthly rests 

calculated on daily balance of the loan amount. Provided that the bank shall at any time and 

from time to time be entitled to change the rate of interest depending on the changes of rate 

of interest in the Bank. Notwithstanding the above the bank is also entitled to increase the 

rate of interest, at its sole discretion and such revised rate of interest shall always be 

construed as agreed to be paid by the borrower (s) and hereby secured. Borrowers shall 

deemed to have notice of change in the rate of interest in the bank are increased interest 

rates by bank or either displayed or notified at / by the branch or published in news paper 

made through entry of interest charged in the pass book / statement of accounts sent to the 

borrower (s). 

Enhanced rate of interest @ 2% p.a on the entire Outstandings for the period of default over 

and above the applicable rate will be charged if the Equated Monthly Instalment (EMI) 

remains unpaid for a period of 30 days from the due date, for any reason, including a 

bounced cheque. Besides the bank shall also charge a penalty, the rate of which shall be at 

the discretion of the Bank, for every bounced cheque for any reason whatsoever in addition 

Crl. ADV-79 31

to the enhanced rate of interest as applicable (present rate – Rs.250/- for every bounced 

cheque). 

5) Repayment 

The loan is to be repaid in Equated Monthly Instalment of Rs.______________. The 

repayment instalment commences: 

(a) 2 months after completion of construction of house / flat or after eithteen months from 

disbursement of first instalment, where loan is released in instalments, whichever is 

earlier or 

(b)from the next month after the date of full disbursement in respect of outright purchase 

of house / flat / extension, repairs or renovation of an existing house / flat*. Your 

liability to the bank will be extinguished only when the outstanding in the loan account 

becomes NIL, on payment of residual amount if any. 

* delete which is inapplicable 

Prepayment Charges 

A prepayment charge of 2% of the amount prepaid will be levied in respect of pre closure of 

Housing loans before expiry of original tenure of the loan. 

6) Security : 

The loan will be secured by : 

a) Equitable / Registered mortgage / extension of mortgage of the land and building flat 

situated at _________________________________________________________ 

for which the loan has been sanctioned, valued at 

Rs._______________________________ belonging to Sri / Smt / 

Kum_________________________________________________ S/o W/o D/o 

________________________________ {Borrower (s) } in favour of the Bank. 

b) Equitable / Registered Mortgage / extension of mortgage of the land and building / 

flat situated at ______________________________________________________ 

valued at Rs._____________ belonging to Sri / Smt / Kum ____________________ 

__________________ (Guarantor) S/o W/o D/o _________________________ 

______________ and Sri /Smt / Kum ___________________________________ 

S/o/ W/o / D/o ____________________________ (Guarantor) in favour of the Bank. 

c) Third Party Guarantee of _______________________________________________ 

___________________________________________________________________ 

d) ___________________________________________________________________ 

___________________________________________________________________ 

7) Utilisation of loan : 

The amount of the loan shall be utilized strictly for the purpose detailed in your application 

and in the manner prescribed. The construction of the house / flat or the modification / 

extention proposed by you 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 scheme as originally approved, can be under taken only after 

express sanction for it has been obtained in writing from the Bank. 

8) Insurance 

The house / flat shall be insured comprehensively for the market value covering fire, flood, 

etc., in joint names of the bank and the borrower. 

9) Inspection 

Crl. ADV-79 32

The Bank will have the right to inspect at all reasonable times, your property by an officer of 

the bank or a qualified auditor or a technical expert as decided by the Bank and the cost 

thereof shall be borne by you. 

10) Legal expenses etc., 

All legal and other expenses, like solicitor’s and lowyer’s fees, valuer’s fees, insurance 

premia, stamp duty, registration charges and other incidental expenses incurred in 

connection with the loan shall be borne by you. 

11) Pre-EMI Interest 

Option for a 

one-time option 

to capitalize 

pre-EMI 

interest* 

Option for 

servicing of 

pre- EMI 

interest* 

The loan amount will be fixed suitably taking into account the 

approximate pre-EMI interest during the moratorium period, duly 

compounded at the applicable card rates (worked out on the 

presumption that the loan is disbursed in lumpsum on the date of first 

disbursement). The computation of the total loan amount (i.e., actual 

loan + pre-EMI interest) will be subject to fulfillment of income criteria 

eligibility and also subject to the extant instructions regarding Equated 

Monthly Instalment / Net Monthly Income (EMI / NMI) ration not 

exceeding (a) 57.50% in respect of borrowers aged below 45 years (b) 

50% in respect of borrowers aged 45 years and above. Please execute 

check-off authority with your employer / tender post-dated cheques 

towards the EMIs of the loan amount. After completion of the 

moratorium period, you will have an option to request to reset EMI 

based on the actual outstandings in the loan account after final 

disbursement subject to submission of revised check-off authority or 

tendering post dated cheques towards the EMIs so arrived at. 

Please tender post dated cheques drawn at monthly intervals for 

servicing of the amount of pre-EMI interest during the moratorium 

period. 

(*Score off whichever is not applicable). 

12) Disbursement 

The loan will be disbursed only on the following conditions: 

a) Title of the property proposed to be mortgaged is clear, absolute, unencumbered and 

marketable to the satisfaction of the Bank’s solicitor / Advocate and a valid mortgage 

(equitable or registered if equitable mortgage is not possible) has been created in 

favour of the Bank. 

b) All the security documents prescribed have been executed by you / co-applicant (s) / 

guarantor (s). 

c) The loan will be disbursed as under . (applicable where loans for construction is 

desired or purchase is through payment in instalments). 

i) 

Stage 

Amount (Rs.) 

ii) 

iii) 

Crl. ADV-79 33

13) The bank reserves the right to collect any tax if levied by the State / Central 

Government and / or other Authorities in respect of this transaction. 

Yours faithfully, 

BRANCH MANAGER. 

Received the original, I/We undersigned agree to the terms and conditions as set out in this 

letter. I/We have opted for (i) *servicing of Pre-EMI interest or (ii)* capitalization of pre-EMI 

interest (*Score off whichever is not applicable). 

_______________________________ 

Signature of the Borrower (s) 

Date : 

Terms and conditions of the loan are accepted by me/us as a guarantor (s) 

Signature of the Guarantor (s) 

Date : 

Crl. ADV-79 34

ANNEXURE-J 

Preliminary agreement to be executed in the case of purchase of flat / house from promoters 

/ vendors 

(To be stamped as an agreement cum power of attorney) 

Place : 

Date : 

AGREEMENT TO MORTGAGE 

The Deccan Grameena Bank, 

_______________________ Branch. 

In consideration of Deccan Grameena Bank established under Regional Rural Banks 

Act, 1976, having its Head Office at Ranga Reddy District, Dilsukhnagar, Hyderabad and 

branch at _______________________ amongst other places (Hereinafter called the “the 

Bank”) having granted / agreed to grant me / us the advance of Rs._____________ for 

purchase and / or construction of house / flat, additions there to situated at 

_________________ more particularly described hereto. I/We _______________________ 

son of ___________________ residing at _______________________________________ 

__________________ hereby undertake to complete the purchase and / or construction in 

all respects in terms of the agreement of sale entered into between me / us and 

_________________________________ S/o.__________________________ residing at 

_______________________________________ copy of which annexed to this and to 

create an equitable mortgage of the said properties Scheduled hereto immediately on such 

completion as a first charge for repayment of all amounts due under the advance first 

referred to. 

I / We hereby agree that the construction of the building stipulated in the agreement 

of construction shall be completed and / or the sale deed in respect of the scheduled 

purchase of the same shall be completed expeditiously including obtention of possession by 

me / us of the building to be constructed, the transfer of ownership of the building in my / our 

said sale deed alongwith other title documents if any shall be deposited with the Bank for 

creation of equitable mortgage without any loss of further time. 

Further, I / We also agree that in case I / we commit any default to create the 

equitable mortgage of the scheduled property to the Bank within three weeks from the 

registration of the sale deed of the scheduled property on execution of this agreement, the 

Bank may at its discretion require me / us to create an equitable mortgage forthwith by 

issuing a registered notice giving 14 days time for creation of equitable mortgage within the 

Crl. ADV-79 35

said period of 14 days, the Bank may through any of its offices execute a legal mortgage in 

favour of through the Bank of the scheduled property as security for the advances so long as 

I / we are indebted to the Bank and all expenses incurred by the Bank in connection with this 

shall be debited to our account. I / We hereby irrevocably and absolutely appoint the Bank 

as my / our attorney to act in my / our name and execute the mortgage deed in my / our 

name and on my / our behalf in favour of the Bank’s mortgaging the properties described in 

the schedule hereto and present the mortgage deed for registration before the registrar / 

sub-registrar of assurance and admit execution of the mortgage deed and I / we agree to 

ratify and confirm all the deeds and things done by the Bank in pursuance of this authority. 

We undertake and declare that I / we shall not transfer or otherwise encumber the 

Scheduled properties to any other person except to the Bank so long as our indebtedness to 

the Bank in respect of the advance referred to above continues in the Books of the Bank. 

Notwithstanding anything contained hereinabove, I / we do hereby agree that the Bank shall 

always have a right to recover the dues from the Scheduled properties as the same is being 

purchased by me / us utilising the advance granted by the Bank. 

SCHEDULE REFERRED TO HEREINABOVE 

(Description of the immovable properties with short particulars of the flat proposed to be 

constructed) 

Name : 

Address : 

Signature. 

Crl. ADV-79 36

ANNEXURE – K 

(SPECIMEN OF MEMORANDUM OF LOAN AGREEMENT 

FOR HOUSING LOAN GRANTED TO PUBLIC). 

To be stamped as an agreement in accordance with the Stamp act in force in the State in 

which the document is executed and not to be attested. 

To 

DECCAN GRAMEENA BANK Place : 

Date : 

__________________________ 

Dear Sir, 

Where as Deccan Grameena bank, a body corporate constituted under the RRBs Act,1976, 

having its Head office at Hyderabad and branches among other places and having one of its 

Branch offices at _____________________ (hereinafter called the “the Bank” which 

expression shall include its successors and assigns) having at my / our request { 

___________________________ Son / Daughter / wife of _____________________ at 

present aged around ________ years and ___________ residing at ___________________ 

and ______________________________________________ Son / Daughter / wife of 

_____________________ at present aged around ______________years and residing at 

__________________ (hereinafter, called “the Borrower” which expression shall include his / 

her respective heirs, executors, administrators and (assigns)} granted me / us Housing Loan 

limit of Rs._________________ (Rupees ________________________________only) for 

purchase / construction of a flat / house or for extension / repairs / renovations of an existing 

house / flat (herein after referred to as the ‘project’) situated at 

_________________________________________________________________________ 

_____________________________________ 

2) In consideration of the grant of the said advance and continuance of the said facility for 

such time as the Bank may deem fit, I/We, “the Borrower(s)” do hereby irrevocably and 

unconditionally agree and undertake, so as to bind myself / ourselves, my / our heirs, 

executors, administrators, estates, assigns and effects as follows, viz., 

a) The disbursement of the amount of the loan shall be at the Bank’s absolute discretion 

and shall be co-related to the actual progress in the construction of the project. Such 

disbursements shall be made by means of Bankers cheques drawn in favour of the 

builders / promoters duly authorised or to engineer / architect / contractor or to 

suppliers of goods and services when the construction is under taken by the 

Borrower and instruct you to make payment for the purpose of the ‘project’. The 

Bank may, at your discretion and at my / our request credit a part of the loan amount 

to my / our current / saving bank account (maintained in single or joint names) to 

Crl. ADV-79 37

enable me / us to make payments to suppliers of goods and services. I/We shall 

submit to the Bank, within a reasonable time, satisfactory proof of the proper 

utilization of the amount of the loan, such as Architect’s certificate, certifying the 

value of the work carried out, Contractor’s bills, stamped receipts, sale agreement, 

for house/flat etc. If considered necessary by the Bank, I/We shall produce at my/our 

cost, photographs showing the progress of construction work carried out by me/us 

which photographs besides showing portion of the neighboring properties, shall be 

certified by persons whose certificates are acceptable to the Bank. 

b) I/we shall repay the amount of loan as per arrangement/sanction letter which forms 

part of this Agreement in equated monthly instalments of Rs.______________ each 

till the entire loan with interest is fully repaid. The equated monthly instalments also 

include interest component. The Bank reserves the right to levy prepayment charges 

of 2% of the amount prepaid in respect of pre-closure of Home loans before expiry of 

the original tenure of the loan. 

Interest on the amount of the loan will be applied at the rate of _______ per cent with 

a minimum interest rate of ______% p.a. rising and falling therewith at monthly rests 

calculated on daily balance of the loan amount. Provided that the bank shall at any 

time and from time to time be entitled to change the rate of interest depending on the 

changes of rate of interest in the Bank. Notwithstanding the above the bank is also 

entitled to increase the rate of interest, at its sole discretion and such revised rate of 

interest shall always be construed as agreed to be paid by the borrower (s) and 

hereby secured. Borrowers shall deemed to have notice of change in the rate of 

interest in the bank are increased interest rates by bank or either displayed or 

notified at / by the branch or published in news paper made through entry of interest 

charged in the pass book / statement of accounts sent to the borrower (s). 

Without prejudice to the Bank’s other rights and remedies, the Bank shall be entitled 

to charge at its own discretion enhanced rates of interest on the outstanding in the 

loan account (s) or a portion thereof for any default or irregularity on my/our part 

which in the opinion of the Bank warrants charging of such enhanced rates of interest 

for such period as the Bank may deem fit. The equated Monthly instalments will 

have to be paid till the entire loan and the interest is fully repaid. Further, the amount 

of Equated Monthly instalment may change / increase as may be decided by the 

Bank. Besides the Bank shall also charge a penalty, the rate of which shall be at the 

discretion of the Bank, for every bounced cheque for any reason whatsoever in 

addition to the enhanced rate of interest as applicable. 

Such enhanced interest will start accruing from the date of disbursement of the loan 

or the date of disbursement of the first instalment of the loan where such loan is paid 

in instalments or from 30 days from the due date of equated monthly instalments 

(EMI) if it remains unpaid for a period of 30 days from the due date for any reason, 

including bounced cheque. 

c) If the loan amount has been utilized by me/us for purchase of ready built house/flat, 

I/We shall pay the first such monthly instalment following the month in which the loan 

amount is disbursed to me/us. The subsequent monthly instalments shall be paid 

before the last day of each subsequent month. If the loan amount has been utilised 

for construction of / additions to house/flat, I/we may be permitted to pay the first 

such monthly instalment till 2 months after the month in which the house/flat has 

been completed or on the expiry of 18 months from the date of disbursement of the 

first instalment, whichever may be earlier. The subsequent monthly instalments will 

be paid before the expiry of each subsequent month. 

d) Pre-EMI Interest: 

Crl. ADV-79 38

(i) *I/We have opted for servicing of Pre-EMI interest and have already delivered or 

hereby undertake to deliver post-dated cheques drawn at monthly intervals for 

servicing of the amounts of Pre-EMI interest during the moratorium period. 

(ii) *I/We have opted for capitalizing the Pre-EMI interest and agree that loan amount 

will be fixed suitably taking into account approximate Pre-EMI interest during the 

moratorium period as detailed in paragraph pertaining to the Pre-EMI interest in 

the Arrangement letter dated ___________ I/We hereby unconditionally agree to 

execute necessary authority in favour of my/own employer or tender post-dated 

cheques towards EMIs of the loan amount. If necessary I/We would request for 

resetting of EMIs based on the actual outstandings in the loan account after final 

disbursement. 

(*score off whichever is not applicable) 

e) I/We declare and confirm that the amount of the loan or the balance then outstanding 

shall become payable at once in case of my death or death of anyone of us. In case of 

death, the Bank may, at its discretion, continue the loan provided sufficient collateral 

security is furnished by my/our legal heirs/surviving borrower(s) or some satisfactory 

arrangement for repayment acceptable to the Bank has been made by my/our legal 

heirs/surviving borrower (s). 

f) I/We shall arrange for the payment for the equated monthly instalments from my/our 

monthly salary or in whatever manner deemed fit* or by debit on the due dates from the 

Current/ Saving Bank account with Branch/or any other Branch where I/We may hold 

the account singly or jointly and to appropriate the same in repayment of the said loan 

and interest. I/We shall execute in favour of the Bank a letter of authority addressed to 

my/our employers to recover and pay to the Bank the equated monthly instalment from 

my/our salary every month*. 

*Delete if not appropriate. 

g) On demand I/We agree to deliver to the Bank post dated cheques for the monthly 

instalments and warrant that the cheques will be honoured on first presentation. Any 

non-presentation of a cheque due to any reason will not affect my/our liability to pay the 

monthly instalments or any other sum. I/We agree to forthwith replace the cheques, 

issue fresh cheques if required by the Bank. I/We shall not be entitled to call upon the 

Bank to refrain from presenting any cheque for payment and if I/We do so, the Bank 

shall nevertheless be entitiled to present the cheque for payment and in the event of 

dishonour the provisions under the Negotiable Instruments Act, shall apply. I/We also 

agree to pay a penalty as stipulated by the Bank from time to time, for every bounced 

cheque for any reason whatsoever in addition to the enhanced rate of interest as 

applicable. 

h) I/We declare and confirm that on my/our retirement, the outstanding amount of the loan 

sanctioned to me will become repayable at once. The Bank may, at its discretion, 

continue the loan provided satisfactory arrangement for repayment, acceptable to the 

Bank has been made by me/us. 

i) In the event of cessation of my/our business / service with my/our employers by way of 

resignation or otherwise (expect as a result of death or retirement); I/We undertake to 

repay to the Bank forthwith on demand the balance principal amount of the loan, or the 

balances then outstanding whichever is higher. 

j) In the event of my/our ceasing to be in business / service of my/our employer whether 

by retirement, resignation, death or by operation of law or for any other reason or cause 

whatsoever and howsoever the Bank shall be entitiled at its discretion to write to my/our 

employers to appropriate and set off (i) any amount which may then be payable by 

my/our employers to me/us whether by way of salary, allowance, bonus, other 

remuneration or any payment (whether ex-gratia or otherwise) whatsoever and (ii) any 

Crl. ADV-79 39

amount that may be standing to the credit of any account which I/we may have with 

my/our employers or with the Bank, either singly or jointly, towards repayment of the 

balance that may be then remaining due and payable by me/us in my/our said loan 

account together with interest thereon at the applicable rates upto the date of such 

repayment. Any such appropriation made by the Bank or my/our employers shall be 

conclusive and binding on me/us and my/our estate both in and out of court. In any 

event my/our liability to make repayment of the entire dues immediately shall remain 

valid till the entire amount with applicable interest as up to the date of payment has 

been realized by the Bank whether by way of recovery from my/our employer or 

otherwise. 

k) I/We will not sell, assign, mortgage, charge or in any way encumber or alienate the said 

flat/house or any part thereof so long as I/We am/are indebted to the Bank in the said 

loan account without prior permission of the Bank in writing. I/We undertake to give 

prior intimation to the Bank before letting out/giving on lease and license the said 

falt/house. 

l) The loan shall be secured by a valid equitable/ legal mortgage of the land /house /flat 

purchased / constructed by me/us for which the Loan facility is provided by 

executing/registering such documents in such form as may be decided by the Bank. 

I/We shall, if required by the Bank, give such further security as acceptable to the Bank 

forthwith on demand by the Bank, give such further security as acceptable to the Bank 

forthwith on demand by the Bank. In case it is not possible to create security by way of 

mortgage as aforesaid I/We shall forthwith on demand arrange for other collateral 

securities, by way of pledge / hypothecation, such as bank’s Fixed Deposits, National 

Savings Certificates, Kisan Vikas Patra, Life Insurance Policies, Promissory notes 

issued by the Govt, shares or debentures of the companies, sufficient quantity of gold or 

gold ornaments or other articles or things acceptable to the Bank as security for the 

loan. The loan shall also be secured by the grarantee of a person acceptable to the 

Bank and good for the loan amount involved and by mortgage of the guarantor’s 

property also or pledge / assignment / hypothecation of other securities acceptable to 

the Bank, if need be. 

m)I/We shall obtain at my/our cost and produce for the satisfaction of the Bank a certificate 

from the Advocate / solicitors approved by the Bank certifying that I/We will have clear, 

valid and marketable title to the land/ house / flat proposed to be purchased by me/us 

and agree that the Bank shall be entitled not to disburse any amount of the loan until 

such certificate has been produced by me/us. 

n) I/We shall maintain the flat/house in good tenantable repair and condition at my/our cost 

at all times so long as I/we am/are indebted to the Bank and that I/We shall ensure that 

the Bank’s security is not in any way jeoparidized. I/We shall duly and punctually pay 

the charges, if any, payable to the Co-operative Housing Society / condominium 

association and also all the municipal/revenue taxes, charges, rates, cesses etc., from 

time to time payable by me/us in respect of the flat/house. The Bank shall be at liberty 

to inspect the flat/house at any reasonable time and I/we shall furnish all such 

information/particulars whatsoever as and when called upon to do so by the Bank. I/We 

shall provide the required no-objection consent for creating a charge on the property 

secured for the Loan, from the Society/Condominium or any other permissions by any 

authority necessary for creating the security in favour of the Bank. 

o) I/We shall at my/our cost insure and keep insured in the joint names of myself/ourselves 

and the Bank my/our house/flat at all times against fire, flood cyclone, typhoon, 

lightning, explosion, riot, strike, earthquake risks and other acts of God for such other 

risks for its full market value as desired by the Bank from time to time and shall 

endeavor to get the building in which my/our flat is situated insured against fire, flood, 

cyclone, typhoon, lightning, explosion, riot, strike,earthquake, risks and other acts of 

God at all times by the Co-operative housing society/apartment owner/association or 

Crl. ADV-79 40

any other body under whose control the building is vested. I/We shall deliver copies of 

the insurance policies, cover notes, premium receipts, etc., to the Bank. If I/we fail to 

effect such insurance the Bank will be at liberty but not obliged to insure the said 

house/flat against fire, flood, cyclone, typhoon, lightning, explosion, riot, 

strike,earthquake, risks and other acts of God and debit the premium and other charges 

to any of my/our accounts with the Bank. I/We expressly agree and declare that the 

Bank shall be entitled to adjust, settle, compromise or refer to arbitration any dispute 

between the insurance company and the insured arising from or under or in connection 

with any such policy or policies of insurance and such adjustment, settlement, 

compromise or any award made on such reference to arbitration shall be valid and 

binding on me/us. I/we further agree that the Bank shall have a right to receive all 

moneys payable under any such policy or under any claim made there under and to 

give a valid receipt therefore and that the amount so received shall be credited to 

my/our loan account and I/we will not be entitled to raise any question that a larger sum 

might or ought to have been received or to dispute my/our liability for the balance 

remaining due on such account after such credit. 

p) I/We agree and declare that notwithstanding anything contained herein or in any other 

security documents the entire amount of the loan or the balances then due shall, if so 

decided by the Bank, become forthwith due and payable by me/us to the Bank, upon 

the happening of any of the following events and the Bank shall be entitled to enforce its 

dues and security. 

i. any instalments of the principal remaining unpaid for a period exceeding one 

month after the due date for payment thereof has expired; 

ii. 

iii. 

any interest including penal interest remaining unpaid and in arrears for a period 

of one month after the same has become due whether demanded or not; 

any breach or default in the performance or observance of any of the covenants 

contained in these presents and/or the security documents or any other term or 

condition relating to the term loans; 

iv. entering into any arrangement or composition with my/our creditors or committing 

any act of insolvency; 

v. any execution or distress being enforced or levied against the whole or any part 

of my/our property; 

vi. 

a receiver being appointed in respect of the whole or any part of my/our property; 

vii. the occurrence of any circumstances which is prejudicial to or impairs, imperils or 

depreciates or which is likely to prejudice, impair, imperil or depreciate the 

security given to the Bank; and 

viii. the occurrence of any events or circumstances which prejudicially or adversely 

affect in any manner my/our capacity to repay the amount due under the loan. 

On the question whether any of the above event/s has/have happened, the decision 

of the Bank shall be conclusive and binding on me/us. 

Provided always that the Bank may in its discretion refrain from forthwith enforcing its 

rights under this Agreement in spite of the happening of the contingencies aforesaid 

and provided further that the failure or delay by the Bank in exercising any right, 

power or privilege hereunder or under any of the security documents shall not 

impair/extinguish the same or operate as waiver of the same nor shall any single or 

partial exercise of any right, power or privilege preclude any further exercise of the 

same or the exercise of any other right, power or privilege. The rights and remedies 

herein and in the security documents are cumulative and not exclusive of any rights 

and remedies provided by the law. 

Crl. ADV-79 41

q) I/We also agree that the Bank shall also be entitled to transfer loan account to any of 

the branches of the Bank after giving due notice to me/us. 

r) I/We shall abide by the terms and conditions of the sanction of the loan to me/us as 

mentioned in the arrangement letter/sanction letter which forms part of this 

agreement and also to the rules for such loans which are now in force and also those 

which may be altered, revised, amended, added from time to time by the Bank / the 

Reserve Bank of India / Central Government / State Government. 

s) The undertakings, authority and agreements herein contained shall be irrevocable so 

long as I/we continue to be liable to the Bank in the said loan account. 

t) I/we hereby further agree that as precondition of the loan/advance given to me/us by 

the Bank, that in case of default in repayment of the loan / advances or in the 

repayment of the interest thereon or any of the agreed installment of the loan on due 

date/s, the Bank and /or the Reserve Bank of India will have an unqualified right to 

disclose or publish my/our name(s), details and photograph(s) as defaulter in such 

manner and through such medium as the Bank or Reserve Bank of India in their 

absolute discretion may think fit. 

u) I/We further agree that the Bank is at liberty to disclose/share my/our Credit 

information to/with Information Company formed under the Credit Information 

Company (Regulation), 2005, as to the loans granted to me/us and the nature of the 

securities given by me/us, the guarantees furnished to secure the said loans whether 

fund based or non-fund based, my/our credit worthiness and any other manner which 

the RBI may consider necessary for inclusion in the Credit Information to be collected 

and maintained by Credit Information Companies and the Bank is not liable in any 

manner to me/us for providing the information as aforesaid to the Information 

Company. 

v) I/We agree that the Bank has absolute right to assign the agreement in favour of any 

person including securitization company or reconstruction company under the 

SARFAESI Act and on such assignment, I/We will be liable to such assignee as if 

assignee is the Bank/lender and assignee will have all rights against me/us and as 

well as over properties either given as security or otherwise to recover all 

debts/liabilities payable by me /us under this agreement. 

I/We declare that I have understood all the terms and conditions for the sanction of this 

loan and agree to abide by the same and also by the rules and regulations which may be 

issued by the Bank in future from time to time and in the event of my/our failing to do so, 

the Bank will have a right to recall the advance without prejudice to the Bank’s right to 

take such appropriate action as the Bank may deem it fit and proper. 

Signed and delivered by : 

Shri/Smt./Kum ______________________________(Borrower) 

(Signature) 

Shri/Smt./Kum ______________________________(Borrower) 

(Signature) 

Signed for and on behalf of Deccan Grameena Bank by 

Shri /Smt.____________________________ 

(Branch Manager______________________Branch, an authorized officer of Deccan 

Grameena Bank.) 

Crl. ADV-79 42

MORTGAGE DEED 

ANNEXURE-L 

1. This deed of mortgage made this _____________ day of ______________ 20_____ 

between __________________________, S/o._________________________________ 

(hereinafter called the Mortgagor) which expression shall unless excluded by or 

repugnant to the subject or context include his / her heirs, executors, administrators, 

representatives, assigns and transferee in interest of the one part and the Deccan 

Grameena Bank, a Regional Rural Bank constituted under the Regional Rural Banks Act, 

1976 and having its Head Office at Ranga Reddy District, Dilsukhnagar, Hyderabad and 

a branch at ___________________ amongst other places (hereinafter called the 

Mortgagee) which expression shall unless excludtred by or repugnant to the subject or 

context include its successors, transferees-in-interest and assigns of the other part. 

2. Whereas the mortgagor is the sole and absolute owner of piece of land having been 

purchased by the mortgagor ____________________________ under the sale deed 

dated and registered on ___________________, more particularly described in 

Schedule-I hereunder, delineated and shown in the plans and the Inthikhab Jamabandis 

attached hereto, the said piece of land according to the present market value, valuing 

about Rs.__________________. 

3. And whereas the Mortgagor has approached the Mortgagee to provide him with finance 

to construct / acquire a residential house / flat on the said peace of land / make additions 

to the existing house for exclusive use of the Mortgagor. 

4. And whereas the Mortgagee has agreed to grant loan of the amount of 

Rs.____________ (hereinafter referred to as the loan) to the mortgagor for the aforesaid 

purpose subject to the terms and conditions governing the advance of such loans in 

question and their modifications from time to time at the instance of the mortgagee and 

subject to the terms and conditions as hereinafter appearing. 

5. And whereas the aforesaid parcel of land constitute the above property of the mortgagor 

and the mortgagor is the sole and absolute owner thereof. 

6. And whereas the said property is uptil now not subject to any change, burden or 

encumbrance of any kind whatsoever and the mortgagor has an un-impeacheable and 

an absolutely perfect marketable title to the same. 

7. And whereas the Mortgagee has agreed to accept as a security for repayment of the loan 

together with interest and charges the mortgage of the aforesaid parcel of land and also 

of the residential building to be constructed on the said land as per plan approved by 

attested copies where of are attached hereto (the said parcel of land and residential 

building and other fixtures and construction to be raised in the circumstances as 

aforesaid hereinafter referred to as the mortgaged premises). 

8. Now, therefore, for the consideration as aforesaid, the mortgagor do thereby transfer to 

the mortgagee by way of simple mortgage the mortgaged premises together with all 

present and future rights advantages, privileges, title and interest in the said mortgaged 

premises and in all and overall, the considerations, fixtures, erections and additions of all 

description whatsoever which may at any time during the continuance of this security be 

erected or added or affixed to the said property or any part thereof, to hold the same unto 

mortgage as a security for the repayment by the mortgagor the amount of loan for the 

time being remaining outstanding against the mortgagor together with the interest 

thereon and charges as hereinafter mentioned, and subject also to the rules and 

regulations governing the advance of the loan in question. 

9. The mortgagor hereby covenants with the mortgagee as under - 

(a) So long as this mortgage shall be subsisting on the loan account, the mortgagor shall 

not create, execute or concur in this creation or execution of any other security or 

Crl. ADV-79 43

encumbrance of any kind over or affecting the mortgaged premises or any part or 

parts thereof in favour of any person, firm or company whatsoever or otherwise 

transfer the mortgaged premises or property to transfer anywise, let or licence his/her 

interest in the same or part with the possession thereof save with the prior written 

permission of the mortgagee and save to the extent and in the manner permitted 

thereby. 

(b) During the continuance of this security, the mortgagor shall not put the mortgaged 

premises to any other use except using that as residential house. 

(c) During the continuance of this security the mortgagor shall without the previous 

consent of the mortgagee in writing, pull down, demolish or remove any building, or 

other structures, erections or fixtures and fittings comprised in the mortgaged 

premises and hereby mortgaged or any part thereof except in ordinary course of 

repairs, maintenance or improvements, and will in such cases restore or procure to 

the restored such building structures or erections or other fixtures and fittings as the 

case may be or replace the same or procure the same to be replaced by another of 

similar nature and of equal value. 

(d) The mortgagor shall at all times during the continuance of the loan presents and 

security hereby created pay all the ground rates, taxes and impositions present as 

well as future all dues and goings whatsoever payable in respect of the mortgaged 

premises immediately the same shall have become due and will keep the same every 

part thereof in substantial state of repair and working. 

(e) The mortgagor shall keep such of the mortgaged premises as are of insurable nature 

and the fixtures, fittings, installations, erections and construction herein comprised 

and hereby mortgaged insured in the joint names of the mortgagor and mortgagee 

against the loss or damage by fire, flood, earthquake, cyclone, typhoon, lightening, 

explosion, riot and other acts of God and also all other risks as may be required by 

the mortgagee from time to time on the basis of replacement cost or other basis of 

valuation satisfactory to the mortgagee in such insurance office of repute to be 

approved of in writing by the mortgagee and the mortgagor shall duly pay all premia 

for renewal of such insurance and shall leave with the mortgagee all policies of such 

insurance effected by the mortgagor in terms of these presents and in such cases it 

shall be lawful for but not obligatory upon the mortgagee to effect insurance and / or 

to pay the premia and be lawful for but not obligatory to do so to repair and keep 

substantial repair and in order the mortgaged premises and part thereof and pay all 

such properties and assets by this security on the basis of replacement cost or such 

other basis satisfactory to the mortgagee and for such time as the mortgagee shall 

think proper and in cases of any claim arises under such insurance shall at the option 

of the mortgagee either be applied towards replacement or repairs to the said assets 

or the satisfaction of the mortgagee as under. 

(f) Nothing herein before mentioned shall absolve the mortgagor from paying to the 

mortgagee and the mortgagor shall forthwith on demand by the mortgagee pay to the 

mortgagee all moneys, outgoings, charges, expenses, dues and duties as mentioned 

hereto before together with interest thereon at the specified rates from time to time of 

same having been incurred and until repayment and the same shall form a charge on 

the said mortgaged premises, the personal liability of the mortgagor shall also 

remain. 

(g) The mortgagor shall permit the mortgagees and its servants and agents either alone 

or with workmen and others from time to time at all reasonable time to enter into and 

upon the mortgaged premises and to inspect the same and for any of the purposes 

as aforesaid. 

10. All buildings, structures or any other erections and installations which may be 

constructed or erected in connection with the mortgaged premises or any part or parts 

Crl. ADV-79 44

thereof or which may be installed or fixed or added to the mortgaged premises stand 

included in this security. 

11. The mortgagor hereby further declares and agree as under :- 

(a) If default is made by the mortgagor in payment of any moneys for the time being 

outstanding against him/her according to the terms and conditions governing the 

advance of the loan in question or payment of interest at the rate and in the time as 

specified therein; or 

(b) If default shall be made by the mortgagor in performance and in observance of any 

covenant condition or provision governing the advance of the loan in question; or 

(c) If the mortgagor without the previous written consent of the mortgagee sells or parts 

with his interest in the mortgaged premises or any part thereof; or 

(d) If the mortgagor is deprived of the whole or part of this security by or in consequence 

of any sort or commission of the mortgagor; or 

(e) If the mortgagee shall be of the opinion that circumstances exist under which the 

mortgagee’s interest is in jeopardy; or 

(f) If by any cause the mortgaged premises are partially destroyed or the security is 

rendered insufficient and the mortgagee gave the mortgagor a reasonable 

opportunity for providing further security enough to render the security sufficient to 

the satisfaction of mortgagee and the mortgagor fails to do so; or 

(g) If it is found hereafter that the title of the mortgagor over the mortgaged premises was 

defective; 

Then and in any one or more of such cases, the moneys for the time being owing by 

the mortgagor to the mortgagee shall at the option of the mortgagee immediately 

become payable to the mortgagee and the Bank shall be entitled to exercise any of 

its rights, remedies in its discretion for realisation of the mortgage and the decision of 

the bank as to whether any one or more of the aforesaid circumstances exist shall be 

conclusive and binding on the mortgagor. In the event of the amount due not being 

fully satisfied from the sale proceeds of the mortgaged premises, the mortgagor shall 

be personally responsible to repay the balance to the mortgagee. 

12. The mortgagor hereby further declares and covenants with the mortgagee as under : 

(a) The loan agreed to be advanced shall be disbursed to the mortgagor in the manner 

as below:- 

i) Before starting the construction to enable the same being started Rs._______. 

ii) On completion of the plinth : 

iii) 

iv) 

On _________________. 

On _________________. 

v) The amount of loan advanced shall be repayable in instalments set out in the II 

schedule and interest on the amount lent as advanced shall be payable with 

each instalment as per the rate specified below: 

vi) 

The mortgagor has good right and full power and absolute authority to create 

the present mortgage in respect of the mortgaged premises and every part 

thereof as evidenced by presents unto the end to the use of the mortgagee in 

the manner as aforesaid. 

On payment of the amount due to the mortgagee from the mortgagor, the 

mortgagee at the cost of the mortgagor shall transfer the mortgaged premises 

to the mortgagor free from its encumbrance and charge thereof accruing due 

or vesting in the mortgage and shall release the said property from the 

Crl. ADV-79 45

encumbrance and thereupon this mortgage shall be deemed to be 

extinguished. 

In witness whereof the parties hereto have executed this deed day and year first above 

mentioned. 

SCHEDULE-I : DESCRIPTION OF MORTGAGED PROPERTY 

SCHEDULE-II : REPAYMENT SCHEDULE RATE OF INTEREST 

MORTGAGOR. 

WITNESSES : 

1. Signature : 2. Signature : 

Name : Name : 

Address : Address : 

Crl. ADV-79 46

ANNEXURE – M 

GUARANTEE AGREEMENT 

(To be stamped as an agreement in accordance with Stamp Act in force in the State in which 

this document is executed. Not to be attested.) 

The _____________________ 


_________________________ 

Place : 

Date : 

Dear Sir, 

In consideration of the Deccan Grameena Bank (hereinafter referred to as “the Deccan 

Grameena Bank”) having agreed to grant/granted at my/our request an advance of 

Rs._______________(Rupees __________________________________) by way of loan to 

Shri/Smt/Kum_______________________________________________ son of /wife of/ 

daughter of Shri______________________________(Thereinafter referred to as “the 

Borrower”) for purchasing flat/construction of house/flat, addition thereto 

at________________________________________________________________________ 

_________________________________________________________________________ 

_________________________________________________________________________ 

(Detailed particulars of property are to be stated) 

I/We Shri/Smt/Kum_____________________________________ Son of/wife of/daughter of 

Shri _____________________________ and Shri/Smt/Kum________________________ 

Son of wife of / daughter of Shri__________________________________________residing 

at_________________________________ hereby guarantee repayment of all money at any 

time payable by the Borrower to the Bank in respect of the said loan made to the Borrower 

with interest thereon and the due performance and observance by the Borrower of the terms 

pertaining to the loan including the Loan Agreement dated _________________executed by 

the Borrower in favour of the Deccan Grameena Bank and the terms and conditions 

contained in the agreement letter dated __________________ issued by the Deccan 

Grameena Bank to the borrower (hereinafter called the said agreement) and the payment of 

all costs and expenses incurred by the Bank in relation thereto and I/We also agree to pay 

and make good to the Bank on demand all losses, costs, damages and expenses occasion 

to the Bank by reason of non payment of the said monies, cost and expenses or any part 

thereof or the breach, non-performance or non-observance of any of the terms under the 

said agreement as aforesaid, subject to the terms and conditions hereinafter contained. 

That my/our liability under this guarantee is co-extensive with that of the Borrower as if i/we 

were the principal debtor(s) of the Bank and the amount due under this agreement will be 

recoverable from me/us without any recourse to the Borrower and it shall not be obligatory 

on the Bank to call upon the Borrower to pay the amount first or to take any action against 

Crl. ADV-79 47

the borrower before enforcing the guarantee against me/us nor shall it be necessary for the 

Bank to join the Borrower in any suit against me/us. I/we further agree that the guarantee 

given there under is irrevocable and enforceable not withstanding any dispute or any suit 

that may be pending between the Bank and the Borrower. 

That the guarantee given shall be continuing one. 

That on demand being made by the Bank for the payment of any amount under this 

guarantee the same shall be paid without demur or protest by me/us and the notice for the 

claim sent to me/us shall be conclusive of the amount due from me/us under the terms of the 

guarantee. 

The Bank shall be at liberty and without the consent or knowledge of me/us at any time or 

from time to time to grant to the Borrower or any person liable for him any time or indulgence 

and to determine enlarge or vary the amount of the loans and advances to take or not to take 

and if taken to vary exchange or take other security or release or part with any securities 

held or to be held by the Bank for or on account of the loans and advances or any part 

thereof and to compound or make any other arrangement with the Borrower or any person 

so liable with or for the Borrower without releasing or discharging and/or in any manner 

affecting my/our liability under the guarantee. 

That the guarantee hereby given is independent and distinct from any security that the Bank 

has taken or may take in any manner whatsoever whether it be by, way of hypothecation, 

pledge and/or mortgage and /or any other charge over goods, book debts, movables and 

other asset and/or any other property movable or immovable and that I/We have not given 

the guarantee upon any understanding, faith or belief that the Bank has taken and or may 

hereafter take any or other such security and that not withstanding the provisions of sections 

140 & 141 of the Contract Act, 1872 or any other provision of that Act or any other law, I/We 

will not claim to be discharged to any extent because of the Bank’s failure to take any or 

other such security or in requiring or obtaining any or other such security or losing, or parting 

with for any reason whatsoever including reasons attributable to its default and negligence 

benefit of any other such security or any rights to any or other such security that have been 

or could have taken and in the event of the Bank so losing or parting with security the 

guarantor (s) shall be deemed to have consented to acquiesce in the same. 

That without prejudice to the effect in any manner whatsoever of the foregoing clause, where 

the loans and advances are secured or intended to be secured in any manner whatsoever by 

or over any property movable or immovable whatsoever by way of hypothecation, pledge 

and/or mortgage of and/or any charge over goods; book debts. Movable and other assets by 

or under any agreement (s) or letter (s) or otherwise I/We will not be concerned in any 

manner with any or other such security that the Bank has taken or proposes to take or may 

take and that the Bank’s failure in requiring or obtaining any other such security in the 

observance or performance of any of stipulations or terms contained in any agreements(s) if 

any or letter (s) and the default of the Bank in requiring or endorsing observance or 

performance of any of the said stipulations of terms shall not have the effect of releasing 

me/us from my/our liability and / or prejudicing the Bank’s rights or remedies against me /us 

under the Agreement or otherwise. 

That the Bank shall be at liberty to take other securities for the loans and advances or any 

part thereof and to release or for bear to enforce all or any of its remedies upon or under 

such securities and any collateral security or securities now held by the Bank and that no 

such release or forbearance as aforesaid shall have the effect of releasing me/us from 

my/our liability or of prejudicing the Bank’s rights and remedies against me/us under the 

terms of the guarantee and that I/We shall have no right to the benefit of any other security 

that may be held by the Bank until the claim of the Bank against the Borrower in respect of 

the loans and advances and of all the other claims (if any) of the Bank against the Borrower 

on any other account whatsoever shall not have been fully satisfied and then in so far only 

Crl. ADV-79 48

as such security shall not have been exhausted for the purpose of realizing the amount of 

the said Bank’s claims and rateably only with other guarantors or other persons if any 

entitled to the benefit of such securities respectively. 

That not withstanding anything contained in Section 133 of the Indian Contract Act or in any 

other provisions of law. I/We will not claim to be discharged to any extent because of the 

Bank varying any of the terms and conditions whether contained in any agreement (s) or 

letter (s) and on which the loan has been made to the borrower and for this purpose and in 

particular any excess drawings over and above the sanctioned limit of the loans and 

advances allowed by the Bank at or without the specific request of the Borrower shall not 

discharge me/us from my/our liability under this guarantee. 

I/We hereby agree (s) that not withstanding any variation made in the terms of the Loan 

Agreement dated ______________ or any other Agreement or letter inter alia including 

variations in the rate of interest, extending the date of payment of the instalments and on 

which the loan has been made or any composition made between the Bank and the 

Borrower or any agreement on the part of the Bank to give time to or not to sue the Borrower 

or the Bank parting with any of the securities given by the Borrower. I/We shall not be 

released or discharged of his/their obligations under this guarantee provided that in the event 

of any such variations or composition or agreement the liability of me/us shall not 

withstanding anything herein contained be deemed to have accrued and I/We shall be 

deemed to have become liable hereunder on the date or the dates on which the borrower 

shall become liable to pay the amount/amounts due under the above referred to Agreements 

as a result of such variation or composition or agreement. 

That if the Borrower shall become insolvent, bankrupt or makes any arrangement or 

composition with creditors, the Bank (not withstanding payment to the Bank by me/us or any 

other person of the whole or any part of the amount hereby secured) rank as creditor and 

may prove against the estate of the Borrower for the full amount of all the Bank’s claims 

against the Borrower or agree to and accept any composition in respect thereof and the 

Bank may receive and retain the whole of the dividends, compensation or other payments 

thereof to the exclusion of all my/our rights as guarantor (s) for the Borrower in competition 

with the Bank until all the Bank’s claims are fully satisfied and I/We will not be paying off the 

amount payable by me/us or any part thereof or otherwise prove or claim against the estate 

of the Borrower until the whole of the Bank’s claims against the borrower, in respect of all the 

liabilities whatsoever have been satisfied and the Bank may enforce and recover payment 

from me/us of the full amount payable by me/us notwithstanding any such proof or 

composition as aforesaid. 

I/We shall not stand discharged by transfer of the loan account of the borrower from one 

branch to another and such transfer of the account shall not be deemed as a variation of the 

terms of the contract. 

That any notice by way of demand or otherwise may be given by the Bank to me/us sending 

the same by post and addressed to me/us and the notice shall be deemed to have been 

given at the time when it will be delivered in the ordinary course of post and it will be 

sufficient in order to prove service of any such notice and to prove that the envelope 

containing the same was posted and the certificates signed by any officer duly authorised by 

the bank in this regard that the envelope was posted, shall constitute such proof. 

That I/We herein authorise the Borrower(s) to acknowledge the debt, on his behalf also and 

any such acknowledgment or payment made by the Borrower(s) in respect of the Loan shall 

and shall always deem to extend the Limitation as against the guarantor (s) also. 

I/We agree that the Bank has absolute right to assign this agreement in favour of any person 

including securitisation company or reconstruction company under the SARFAESI Act and 

on such assignment, I/We will be liable to such assignee as if assignee is the Bank/lender 

Crl. ADV-79 49

and the assignee will have all rights against me/us and as well as overall properties either 

given as security of otherwise to recover all debts / liabilities payable by me/us under the 

agreement. 

That the guarantee herein contained shall not be determined or affected by the death of 

me/us hereunder but shall in all respects and for all purposes be binding and operative on 

my/our successor (s) heir (s) and assigns until repayment of all moneys secured by and due 

to the Bank under the loan granted to the Borrower. 

We further agree that I/We shall be jointly and severally liable to the bank for the entire 

outstanding in respect of the loan and that the Bank shall be at liberty to sue either or any of 

us inrespect of such liability without joining the other or others of us and notwithstanding any 

degree in any such suit subsequently to sue the others of us and to proceed to judgement 

and execution at the option of the Bank until its claim, is fully satisfied. 

I/We understand that as a precondition, relating to grant of the loans/ advances / other nonfund 

based credit facilities to ____________________________________ and furnishing of 

guarantee in relation thereto, the Bank, (DGB), require consent of the guarantor (s) of the 

credit facility, granted/ to be granted, by the Bank for disclosure of, information and data 

relating to the guarantor (s), any credit facility availed of by the guarantor (s) obligations as 

assumed by the guarantor (s) in relation there to and default, if any, committed in discharge 

thereof. 

Accordingly, I/We hereby agree and give consent for the disclosure by the Bank of all or any 

such: 

a. information and data relating to me/us 

b. the information or data relating to in credit facility granted / to be granted, by the Bank 

and guaranteed by me/us as a guarantor and 

c. default if any, committed by me/us in discharge of my/our such obligations as the 

Bank may deem appropriate and necessary to disclose and furnish to CIBIL and any 

other agency authorised in this behalf by RBI. 

I/We declare that the information and data furnished by me/us to the Bank are true and 

correct. I/We undertake that: 

a. the CIBIL and any other agency so authorized may sue, process the said 

information and data disclosed by the Bank in the manner as deemed fit by them; 

and 

b. the CIBIL and any other agency so authorised may furnish for consideration, the 

processed information and data or products thereof prepared by them, to 

banks/financial institutions and other credit grantors or registered users, as may be 

specified by the RBI in this behalf. 

Signed and delivered by the said 

Shri _______________________________ (Guarantor)_____________________ 

Shri _______________________________ (Guarantor)_____________________ and 

Place __________________ 

Date __________________ 

Crl. ADV-79 50

(LETTER FROM NON-CORPORATE BORROWER(S) 

CONFIRMING THE DEPOSIT OF THE TITLE DEEDS) 

Place : 

The Manager, Date : 

Deccan Grameena Bank, 

_________________ Branch. 

ANNEXURE-N 

Dear Sir, 

I/We am/are writing this to confirm that I/We have deposited with the Bank on 

_________________ documents of title relating to my / our property at 

____________________ _____________________________ described below (hereinafter 

referred to as the “said property”) with the intention of creating an equitable mortgage on the 

said property by way of collateral security for the amounts due to the Bank from me/us/the 

concern of _______________ under the following credit facilities extended to me / us / the 

concern of ____________________ by the Bank : 

Nature of Facility 

Limit (Rs.) 

(a) 

(b) 

(c) 

(d) 

-------------- 

Total 

--------------- 

& also as security for all other liabilities & indebtedness past present and future to the Bank. 

* Delete if not applicable 

The said property belongs to me/us absolutely and as such no one else has any interest 

therein. The said property is under my / our sole occupation (a portion of the building is 

under tenancy occupation on monthly rent). 

There is no subsisting agreement for the sale of the said property nor has any prospective 

or any intending purchase taken possession of it or a part of it. The said property is free 

from encumbrances. 

THE SCHEDULE-I REFERRED TO HEREIN ABOVE 

(List of documents of title) 

THE SCHEDULE-II REFERRED TO HEREIN ABOVE 

(Description of the immovable properties) 


For Messrs 

(Signature)Proprietor/Partner(s)/Karta 

Crl. ADV-79 51

ANNEXURE-O 

(LETTER FROM NON-CORPORATE BORROWER(S) CONFIRMING THE 

DEPOSIT OF TITLE DEEDS FOR EXTENSION OF THE EXISTING MORTGAGE) 

The Branch Manager, 


_________________ Branch. 

Place : 

Date : 

1. I/We am/are writing this to confirm that I/we have deposited with the Bank on 

___________ the documents of title relating to my/our property situated at 

_________________ Village, ____________________ Mandal, ___________________ 

District described below (hereinafter referred to as the “said property”) with the intention of 

creating an equitable mortgage over the said property by way of security for the amount due 

to the Bank from me/us/ the concern of _______________ under the following credit facilities 

extended to me/us/the concern of _____________________ by the Bank. 

(a) 

(b) 

(c) 

(d) 

Total 

Nature of Facility 

Limit (Rs.) 

------------- 

-------------- 

& also as security for all other liabilities & indebtedness past, present and future to the Bank. 

2. At my/our request you were pleased to grant me/us/the said concern of 

______________ an enhancement of the above mentioned credit facilities as noted below : 

(Rs.) 

(a) 

(b) 

(c) 

(d) 

Nature of Facility Original Limit(Rs.) Enhanced Limit 

-------------- 

Tota -------------- 

3. This is to confirm that consequent upon the enhancement of the credit facilities as 

stated above and for the purpose of having the enhanced limit of the credit facilities 

covered by the security of the said property, I/we called on you on 

__________________ and admitted and declared in the presence of yourself and Shri 

_____________________________ that the benefit to the Bank of the mortgage by 

deposit of title deeds relating to the said property created, as stated above on 

Crl. ADV-79 52

__________________ shall also apply for, stand extended to and cover the enhanced 

aggregate limits of Rs.__________________ granted to me/us/the concern of 

______________________________ by the Bank, besides the said property being 

security for all the liabilities and indebtedness due or falling due to the Bank. 

4. The said property belongs to me/us absolutely and no one else has any interest therein. 

The said property is under my/our sole occupation. 

5. There is no subsisting agreement for the sale of the said property nor has any 

prospective any intending purchaser taken possession of it or part of it. The said 

property is free from encumbrances, save the mortgage already created in favour of the 

Bank. 

THE SCHEDULE-I REFERRED TO HEREIN ABOVE 

(List of documents of title) 

THE SCHEDULE-II REFERRED TO HEREIN ABOVE 

(Description of the immovable properties) 


For Messrs 

(Signature) 

Proprietor/Partner(s)/Karta 

Crl. ADV-79 53

ANNEXURE-P 

OUTRIGHT PURCHASE OF HOUSE / APARTMENT / FLAT 

Certificate of Inspection submitted by 

Sri ________________________________ (designation) 

Place : 

Date : 

I have inspected the house / flat / apartment No.__________ situated at 

____________________ on __________________ to be purchased by Sri 

____________________________________ under loan account No.__________________. 

The House / Flat / Apartment is in good condition. It is in tune with the approved sanctioned 

plan issued by the Competent Authority and also in terms of documents submitted by the 

borrower. I have made spot inspection regarding the house / flat / apartment under 

construction. 


(Sri/Smt/Kum._______________________) 

Branch Manager 

Crl. ADV-79 54

ANNEXURE-Q 

CONSTRUCTION OF HOUSE / APARTMENT-CERTIFICATE OF 

PERIODICAL INSPECTION SUBMITTED BY 

SRI ________________________ (DESIGNATION) 

Place : 

Date : 

I have inspected the house / flat / apartment No.____________ situated at 

_________________ to be constructed /purchased by Sri ___________________________ 

under loan account No._____________ on _________________. 

The details of the inspection are as follows : 

(1) Earlier date of inspection as per records. 

(2) Earlier stage of construction. 

(3) Present stage of construction 

I hereby confirm that the construction so far is in tune/not in tune with the approved 

sanctioned plan and terms of sanction. 

There is *deviation / No deviation. 

The details of irregularity observed by me are as follows. 

* delete whichever is not applicable. 


(Sri/Smt/Kum._______________________) 

Branch Manager 

Crl. ADV-79 55

ANNEXURE-R 

Place : 

Date : 

Authorisation letter to receive the sale deed 

From : To : 

________________________ 

________________________ 

_________________________ 

________________________ 

The Registrar of assurances, 

Sale deed dt._____________________ conveyance deed executed on _______________ 

by ____________________ and between may self and Sri / Smt. _____________________ 

for purchase of house / flat / apartment No.__________ situated at __________ 

The subject sale deed / conveyance deed has been lodged with your office on 

____________ for registration vide your S.No.___________________ 

I / We have been sanctioned house loan by Deccan Grameena Bank Hyderabad 

______________ Branch purchase of the house / flat / apartment which is properly acquired 

by me under the above said sale deed / conveyance deed. 

I / we hereby authorise you to directly deliver the said original sale deed / conveyance deed 

after registration at your office to Manager, Deccan Grameena Bank 

____________________ Branch. 

I / we authorise the Manager, Deccan Grameena Bank ______________________ Branch 

to directly receive on my / our behalf the said sale deed, after registration from your office. 

Kindly note this and forward the sale deed/ conveyance deed after registration to the 

Manager of Deccan Grameena Bank ______________________ Branch. 

Thanking You. 


Signature . 

Crl. ADV-79 56

The Branch Manager, 


_________________ Branch. 

LETTER OF PLEDGE 

Place : 

Date : 

ANNEXURE-S 

Dear Sir, 

Sub: - HOUSING LOAN OF RS.___________________ SANCTIONED TO ME. 

As per the terms of sanction advise dated _______________ and housing loan agreement 

dated ____________ I herby tender and pledge to the Bank, F.D.Rs. standing in my name, 

the details of which are mentioned herebelow as additional securities for the repayment of 

liabilities under the housing loan account with your branch. 

I hereby confirm that no prior lien or charge of whatsoever nature and to any extent has been 

created on the said F.D.Rs. 

I also herby declare that the Bank shall be entitled at its absolute discretion to encash the 

FDRs at any time even before the due date on which the said F.D.Rs. mature for payment or 

at any time after the date of maturity and without any prior notice to me and adjust the 

proceeds thereof towards discharge of my liability / ies under the housing loan account or 

any other account standing in my name or jointly with other /s. 

In the event of insufficiency of amounts so realized for clearing of the liabilities, I here by 

undertake to pay the shortfall on demand by the Bank with interest at the rate of as 

demanded while making the demand by the bank for payment. I here by authorise and 

empower you to renew the FDR, from the time to time if considered necessary by the bank 

at its absolute discretion without any reference to me and / or to my legal heirs for any period 

as deemed necessary of appropriate the net proceeds thereof towards discharge of the 

liability / ies under the housing loan account aforesaid. 

Subject to the above, the security hereby created shall be governed by relevant terms and 

conditions contained in the subject housing loan agreement executed by me. 

No. of Deposit 

Certification & 

date 

PARTICULARS OF F.D.R. RECEIPTS 

Issuing branch Date of maturity Amount of 

Deposit / face 

value 

Maturity value 

Signature 

Crl. ADV-79 57

HOUSING LOAN AGREEMENT 

ANNEXURE - T 

This Memorandum of Agreement made on this the ______ day of ________, 20 ____, 

by______________ S/o. _________________ R/o. _________________, (hereinafter 

referred to as ‘borrower’ which expression shall unless repugnant to the context or meaning 

there of be deemed to include him / her and his / her heirs, executors, administrators, legal 

representatives., successors, ad assigness) IN FAVOUR OF Deccan Grameena Bank, 

constituted under RRB’s Act, 1976, having its Head Office at Hyderabad and among other 

places a branch at ________________, (hereinafter referred to as “Bank” which expression 

shall unless repugnant to the context or meaning there of be deemed to include its 

successors and assignees). 

WHEREAS by an application dated ____________, the borrower has requested the bank to 

finance the purchase / construction of the flat / house / additions and alterations on the 

borrower’s existing house etc., the full details of which are given in the schedule herein and 

to grant to the borrower a sum not exceeding Rs. ______________ (Rupees 

______________ ______________________) 

Hereinafter called “Said Loan” 

WHEREAS bank has at such request of the borrower agreed to grant a Housing Loans of 

Rs._________________ (Rupees ______________________________________) subject 

to interalia to the terms and conditions contained in the sanction advise dated 

______________, this Agreement / Mortgage Deed, and any other documents that may be 

executed hereafter in respect of the said loan and all such other terms and conditions as 

may be deemed necessary and notified from time to time by the bank to the borrower. 

NOW THIS INDENTURE WITNESSETH THAT IN CONSIDERATION OF THE ABOVE 

PREMISES IT IS HEREBY COVENANT AND AGREED BY THE BORROWER AS 

FOLLOWS: 

1) The borrower agrees and declare that he is bound to the Bank in principal a sum of 

Rs.______________ (Rupees _________________________________) only, interest 

thereon as specified below, charges expenses, costs, etc., to be paid to the Bank as 

herein after provided, for which payment the borrower hereby binds himself, his legal 

representatives, executors and assigness. 

2) The borrower agrees that the disbursement of the amount of the loan shall be at the absolute 

discretion of the Bank and to be correlated to the actual progress of the construction of the 

house / flat / additions and will be made by means of Bankers Cheque drawn in favour of the 

builder / contractor / vendors / parties / suppliers to whom the borrower hereby authorises the 

Bank to make the payment for the purpose of acquisition / construction / additions or 

alterations of / to house / flat / apartment. 

3) The borrower agrees that interest shall be charged on the outstandings of the loan account 

at a minimum of ____% p.a. or at such rates as may be determined by the bank from time to 

time at bank’s sole discretion on the basics of the market conditions that take place during 

the period of the Agreement or on account of changes in interest rates prescribed by R.B.I. 

form time to time. Bank shall also be entitled to charge at its own discretion such enhanced 

rates of interest on the loan account as it may fix for any irregularity in repayment of loan 

instalments and interest. 

4) The borrower agrees that interest shall be charged on the daily balances of the loan 

account with monthly rests according to the practice of the Bank. 

5) The borrower further agrees that he is liable to reimburse or pay to the bank such amount as 

might have been paid or payable by the bank to Central or State Governments on account of 

tax levied on the interest / or other charges on the loan. The reimbursement or payment shall 

be made by the borrower as and when called upon by the bank. 

Crl. ADV-79 58

6) The borrower agrees and undertakes that the principal sum of the loan, interest and 

other charges and any other dues payable by the borrower under this Agreement shall 

be secured by the mortgage of the property described in the schedule and the bank shall 

have the right to decide in its sole discretion the type of mortgage or any other or any 

additional security it may require and the borrower shall be bound to execute the 

mortgage / accordingly and also furnish any such other or additional security as required 

by the Bank. 

7) The borrower agrees and gives his consent to bank for converting the mortgaged 

securities given by him to tradable securities and for being sold and for obtaining any 

loan on the securities offered by the borrower, but without prejudice to his rights of 

redemption of the mortgage. 

8) The borrower further agrees that he has no objection for the bank creating a charge over 

the schedule property for which the loan is advanced by way of security in favour of 

National Housing Bank or any other institution and also permission of the borrower as a 

mortgager to the bank as a mortgagee to transfer its interest in the immovable property 

to National Housing Bank or any other institution as security. 

9) The borrower agrees that he shall repay the amount of the principle together with 

interest, costs, charges, expenses, and other monies, due to the bank by such 

instalments and on such dates as given herein or as stipulated / rescheduled by the 

Bank from time to time until the entire amounts due under this Agreement have been 

paid. If there is any default in payment of any one of such instalments on due date, the 

bank shall be at liberty to demand payment of and the borrower shall be bound and 

liable to pay forth with on such demand the entire balance outstanding amount in the 

loan account. In the case of borrower’s default in repayment of any one of loan 

instalments along with accrued interest and in case of borrower’s breach or any of the 

terms and conditions of this Agreement, Bank without prejudice to its right to recall the 

entire loan amount, shall charge, without notice, a penal interest at 2% over and above 

the normal interest or at such rate as determined by Bank on the default amount or on 

the loan amount as the case may be till repayment of the amount. 

a. Principal loan amount: - Monthly /quarterly / half yearly instalment of Rs._________ 

(Rupees ____________________________________ ) each in ____________ instalments, 

first of which falls due on _________________ (date) and subsequent instalments shall 

become due on the corresponding date of every month quarter / half year. 

b. Interest: The interest is repayable as and when accrued / applied / debited to the loan a/c. 

10) The borrower declares, affirms, confirms, that 

a. He is not in default under any Law, Rule, Regulation, Order, Mortgage, Trust, 

instalment, agreement, or other instruments, arrangement, obligation, or duty by 

which the borrower is bound. 

b. No litigation or administrative or arbitration proceeding of or before any Court, 

Government authority, or Arbitrator is presently taking place, pending, or threatened 

against the borrower or against any of the assets of the borrower including the 

schedule property. 

11) The borrower agrees, declares, affirms, that 

b. The loan amount shall be utilised exclusively for the purpose for which it is 

sanctioned and shall not be diverted for any other purpose without written consent of 

the bank. 

c. The borrower shall complete the said construction as indicated by him in the loan application 

or otherwise and obtain and produce to bank the proper completion certificate issued by the 

municipal corporation or municipality or the authority concerned. 

Crl. ADV-79 59

d. The borrower shall promptly notify any event or circumstance which might operate as 

a cause of delay in the commencement or completion of the construction. 

e. The borrower shall arrange for the execution of the letter in the Bank’s prescribed 

Proforma by the builder / contractor / vendor of the flat / house. 

f. The borrower shall maintain the house, when completed, in good order and condition 

and will make all necessary repairs, additions and improvements thereto during the 

pendency of the loan. 

g. The borrower shall notify any change in his employment, business or profession 

within seven days of the change. 

h. The borrower shall duly and punctually comply with all the terms and conditions of 

the holding of the house and all the rules, regulations, by-laws etc., of the concerned 

co-operative society, association, limited company or any other competent authority 

and pay such maintenance and other charges for the upkeep of the house as also 

any other dues etc as may be payable in respect of the said house or the use thereof. 

i. The borrower shall promptly inform bank of any loss or damage to the property which 

the borrower may suffer due to any force majeure of act of God, such as earthquake, 

flood, storm, tempest or typhoon etc., against which the property may not have been 

insured. 

j. The borrower shall notify and furnish details of any additions to or alterations in the 

house which might be proposed to be made during the pendency of the loan. 

k. The borrower agrees that bank or any person authorised by it shall have free access 

to the property for the purpose of inspection / or supervising and inspecting the 

progress of construction to ensure proper utilisation of the loan. 

l. The borrower shall abide by the term and conditions of the sanction of loan and also 

objects which may be lawfully revised, amended, added from time to time by the 

bank / RBI /Government. 

m. The borrower shall at his cost insure and keep insured in the joint names of himself 

and the Bank the schedule property at all times against fire, flood, cyclone, typhoon 

lightning explosion, riot, strike, earthquake risks and other risks or acts of God and for 

such other risks for its full market value as desired by the Bank from time to time and 

shall endeavour to get the building in which the flat is situated insured against fire, 

flood, cyclone, typhoon, lightening, explosion, riot, strike, earthquake risks and other 

risks or acts of God at all times by the Cooperative Housing Society / Apartment 

Owners/ Association or any other body under whose control the building is vested. 

Borrower shall deliver the insurance policies, cover notes, premium receipts etc., to 

the Bank for inspection. If Borrower fails to effect such insurance the Bank may at its 

discretion but not bound to insure the said house / flat against fire, flood, cyclone, 

typhoon, lightning, explosion, riot, strike, earthquake risks and other risks and acts of 

God and debit the premium and other charges to any of Borrower accounts with the 

Bank. Borrower expressly agrees and declares that the bank shall be entitled to 

adjust, settle, compromise or refer to arbitration any dispute between the insurance 

company and the insures arising from or under or in connection with such policy or 

policies of insurance and such adjustment settlement compromise or any award 

made on such reference to arbitration shall be valid and binding on Borrower. The 

Borrower further agrees that the Bank shall have a right to receive all moneys 

payable under any such policy or under any claim made thereunder and to give a 

valid receipt therefor and that the amount so received shall be credited to Borrower’s 

loan account and the Borrower will not; be entitled to raise any question that a larger 

sum might or ought to have been received or to dispute his liability for the balance 

remaining due on such account after such credit. 

Crl. ADV-79 60

The borrower agrees and declares that. 

a) He will not let, sublet, the said flat / house or any pat there of or give it on lease and 

license basis or otherwise part with possession thereof to any other person during 

the currency of the loan except with the banks specific permission in writing . 

b) The borrower shall not sell, mortgage, lease, assign charge, surrender, or in any way 

encumber or alienate the schedule property or any part thereof during the currency of 

the loan without permission of bank in writing. 

c) The borrower shall not enter into any Agreement or Arrangement with any person, 

institution, or local or Government body for the use, occupation or disposal of the 

said property or any part thereof during the pendency of the loan. 

d) The borrower shall not change residential use of the property, if the property is used 

for any purpose other than residential purpose, in addition to any other action which 

bank might take, bank shall be entitled to charge, in its sole discretion such higher 

rate of interest as it might fix in the circumstances of the case. 

e) The borrower shall not amalgamate or merge his property with any other adjacent 

property nor shall he create any right of way of any other easement on the property. 

f) The borrower shall not leave India for employment or business or for long term stay 

abroad without fully repaying the loan then outstanding together with interest and 

other dues charges including prepayment charges as per the rules of Bank then in 

force. 

12) The borrower confirms the accuracy of the information given in his loan application and 

any prior or subsequent information or explanation given to the bank in this behalf. 

13) The borrower confirms and assures that he has absolute, clear and marketable title to 

the schedule property to be mortgaged by him as security for the loan and the said 

property absolutely unencumbered and free from any liability whatsoever and the 

borrower indemnifies and keeps the bank safe and harmless against any risk 

whatsoever in respect of the title of the borrower over the schedule property. 

14) The borrower further confirms that there are no mortgages, charges, inpendency or 

lease or other encumbrance or any rights of way, light, or water or other easement got 

right of support on the well or any part of the property of the borrower. 

15) The borrower declares and confirms that the schedule property is not included or 

affected by any way of the schemes of Central / State Governments or of the Trust or 

any other Public Body or legal authority or by any laying, widening or construction of 

road under any scheme of the State / Central Government or of any corporation, 

municipal committee, Gram panchayat, etc. 

16) The borrower confirms that he has disclosed all facts relating to his property to the bank 

and has made available to the bank all title deeds in his possession. 

17) The borrower confirms and agrees that he has paid and shall pay all public demands 

such as income tax and all other taxes and revenues payable to the Government or to 

any other local authority and there are no such arrears of taxes and revenues due and 

outstanding. 

18) The borrower agrees that the outstandings in the loan accounts granted by the Bank, 

not-with-standing any thing contained herein or in any other security document, shall if 

so decided by the bank become forthwith due and payable by the borrower to the bank 

upon happening of any of the following events and the bank shall be at its discretion 

entitled to enforce its security. 

(a) any instalment of the principal remaining unpaid for a period exceeding one month 

after the due date for payment thereof has expired. 

Crl. ADV-79 61

(b) any interest remaining unpaid and in arrears for a period of one month after the same 

have become due whether demanded or not. 

(c) The borrower committing any breach or default in the performance or observance of 

any of the covenants contained in these presents and/or the borrower’s proposal 

and/or the security documents or any other term or condition relating to the term 

loans. 

(d) The borrower entering into any arrangement or composition with the borrower’s 

creditors or committing any act of insolvency. 

(e) any execution or distress being enforced or levied against the whole or any part of 

the schedule property. 

(f) a receiver being appointed in respect of the whole or any part of the schedule 

property of the borrower. 

(g) the occurrence of any circumstance which is prejudicial to or impairs, imperils or 

depreciates or which is likely to prejudice, impair or depreciate the security given to 

the bank; and 

(h) the occurrence of any event or circumstance which prejudicially or adversely affect in 

any manner the capacity of the borrower to repay the amount due under the term 

loans. On the question whether any of the above events has happened, the decision 

of the bank shall be conclusive and binding on the borrower. 

Provided always that the Bank may in its discretion refrain from forthwith enforcing its 

rights under this Agreement inspite of the happening of the contingencies aforesaid 

and provided further that the failure or deal by the Bank in exercising any right, power 

of privilege hereunder or under any or the security documents shall not impair 

extinguish the same or operate as waiver of the same nor shall any single or partial 

exercise of any right, power or privilege preclude any further exercise of the same or 

the exercise of any other right, power or privilege. The rights and remedies provided 

herein and in the security documents are cumulative and not exclusive of any rights 

and remedies provided by Law. 

19) The borrower agrees to reimburse all reasonable costs incurred by the bank after event 

of default has occurred in connection with the preservation of the Borrowers Assets or 

Collection of amounts due under this Agreement. 

20) The borrower agrees, declares, affirms and confirms that not withstanding any of the 

provisions of the contract act or any other law, or any terms and conditions to the 

contrary contained in this Agreement and/or any security documents any payment made 

by the borrower to the Bank shall unless otherwise agreed to by the Bank in writing be 

appropriated by the Bank in the manner following:- 

(a) Firstly towards costs, charges, expenses, and other money, due and payable or 

becoming due and payable to the Bank. 

(b) Secondly towards interests due and payable and/or accruing due and payable to the 

Bank; and 

(c) Lastly towards repayment of the amount of any instalment(s) of the principal sum due 

and payable for becoming due and payable to the Bank. 

all the aforesaid amounts having become due and payable and/or becoming due and 

payable by the borrower to the bank under this Agreement and/or under any of the 

security document executed between the borrower and the Bank whether the 

recovery thereof has or has not become barred by any law in force for the time being 

as to the limitation of suits. 

Crl. ADV-79 62

21) Any notice or communication or demand by the Bank in writing to the Borrower under 

this Agreement or any security documents shall be deemed to have duly given to the 

borrower by sending the same by post addressed to the borrower at the address notified 

by the borrower and such notice or communication or demand shall be deemed to have 

been received by the borrower four days after the date of posting thereof and shall be 

sufficient if signed by any officer of the bank and in proving such service it shall be 

sufficient if it is established that the envelope containing such notice, communication or 

demand was properly addressed and put into the post office. 

22) The borrower shall bear and pay all costs, charges, and expenses (between advocate 

and client) including stamp duty Registration and their charges payable in respect of this 

Agreement and also in respect of other security documents to be executed between the 

parties hereto as stipulated in this Agreement and if any penalty or charges are paid or 

become payable by the Bank, the borrower shall pay to the Bank the amount thereof 

with interest thereon at the rate aforesaid forthwith on demand by the Bank. 

23) The borrower agrees that the bank is under no obligation to give any notice or intimation 

regarding borrower’s obligation to pay loan instalments or interest on the due dates or 

changes in the interest rates made by the Banks from time to time under this 

Agreement, which shall be entirely borrower’s responsibility to ensure prompt and 

regular payment of instalments and interest. It is also agreed by the borrower that any 

delay in payment of instalment or interest shall render that borrower liable to additional 

interest as per rules of the bank in that regard as in force from time to time. 

24) The borrower agrees that the bank in its sole discretion and on such terms as to 

prepayment charges etc. as it may prescribe, prompt acceleration of monthly 

instalments or prepayment at the request of the borrower. 

25) Borrower agrees and declares that no delay in exercising or omission to exercise, any 

rights, power or remedy accruing, bank upon any default under this Agreement, 

mortgage deed, or any other document or agreement, shall impair any such right, power 

or remedy or shall be construed to be waiver thereof or any acquiesce any such default 

nor shall the action or any action of bank in respect of any default or any action by it in 

any default affect or impair any right, power, or remedy of bank in respect of any other 

default. 

SCHEDULE OF THE PROPERTY 

(DETAILS OF THE PROPERTY WITH BOUNDARIES) 

IN WITNESS WHEREOF THE BORROWER SHALL EXECUTE THIS PRESENCE THE 

DAY AND YEAR FIRST; HEREIN ABOVE WRITTEN. 

SIGNATURE OF BORROWER 

Crl. ADV-79 63

ANNEXURE-“U” 

(UNDER TAKING FROM APPLICANT WHERE A HOUSING LOAN IS GRANTED FOR 

PURCHASE OF PLOT OF LAND) 



_________________ Branch 

Dear Sir, 

HOUSING FINANCE – APPLICATION FOR A LOAN FOR PURCHASE OF PLOT OF 

LAND 

This has reference to my / our application dated _____________ for a loan of 

Rs.____________ for purchase of a plot of land for construction of a dwelling unit thereon. I 

hereby give an undertaking that I will be constructing a house on the said plot of land within a 

period of two years. In the event of my failing to construct a house within two years, the bank 

will be free to charge a higher rate of interest as deemed fit by the bank or even to recall the 

loan. 


(__________________) 

(Name (s) & Addresses) 

Crl. ADV-79 64

DECCAN GRAMEENA BANK

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