CANARA LAP (LOAN AGAINST PROPERTY): CANARA LOAN AGAINST PROPERTY (CANARA LAP) 1.

Purpose: To meet Personal or Business needs, but not for any speculative purpose / Commercial real estate activity / Capital market activity. 2. Eligibility: Loan against mortgage of UNENCUMBERED immovable property located in Metro / Urban centres for Individuals (singly or jointly), Traders, Businessmen, Professionals or self employed persons, proprietary firms, partnership firms (excluding Traders or partnership firms where HUF is a partner), Companies (excluding NBFCs). NRIs (with a resident co-borrower (i.e. with Resident Indian who is a blood relative of the NRI borrower as co-borrower), having known and regular source of income and not engaged in real estate/speculative activity /capital market activity.(FEMA guidelines are to be adhered to ) Initially, loans will be available for applicant and properties in and around the city limits of Mumbai, Pune, New Delhi(NCR), Bangalore, Chennai, Ahmedabad, Chandigarh, Jaipur, Trivandrum, Trichy and Hyderabad. Salaried individuals, professionals & self-employed individuals in the age group of 18 to 60 years are eligible. 3. Nature of Facility: Demand / Term loan for salaried /non-salaried individuals, repayable within a maximum period of 36 / 120 months. Demand/Term Loan / Overdraft facility for other than individuals for business purpose. 4. Quantum: Maximum Rs.10 Crores However, loans shall be limited to 60% of the valuation of property (applicable to both salaried and non-salaried classes) In respect of salaried Individuals, Net take home salary shall not be below 40% after deductions including EMI towards this loan. In respect of non-salaried Class, subject to adequate cash flows to ensure repayment capacity, maximum loan amount shall not exceed 3 years gross annual income.

5. Margin: 40% of the fair market value of the property Repayment: Sl Nature of Period Advance 1. Working Capital 12 Months. Renewable every year (overdraft) subject to satisfactory operations and conduct. 2 Demand Loan# 36 Months(Max) 3 Term Loan# 120 Months(Max) 6. REPAYMENT: For Salaried Class/Non-salaried individuals- by equated monthly instalments For business Purpose: Interest shall be serviced as and when due and principal shall be repaid as stipulated per month. 7. Security: o Mortgage of property. o Personal guarantee of the joint/co-owner of the property if any o Personal guarantee of partners / Directors in case of firm / company. The property given as security shall be exclusive to this loan and shall not be encumbered to any other loans as 1st charge. 8. Rate of Interest: Sl 1. 2. 2. 1 2. 2 2. 3 Category Individuals Business Concerns: Low Risk Normal Risk Moderate Risk Rate of Interest (%) Base rate* +3.75% Base +3.75% Base +4.00% Base +4.50% Rate of interest with Base Rate @ 10.25% 10.25% + 3.75% = 14.00%

rate* 10.25% + 3.75% = 14.00% rate* 10.25% + 4.00% = 14.25% rate* 10.25% + 4.25% = 14.50% *Base Rate is subject to

periodical revisions

9. Processing Charges: 0.50% of the loan amount with a Maximum of 20000/-. Maximum 2000/- per renewal for overdraft facility. 10. Prepayment Charges:

Nil, in case prepaid from borrower's own sources. If the loan a/c is taken over by other Bank/FI, prepayment charges to be levied @ 1% of outstanding liability as on the date of such take over. ------------------------------------------------------------------------------------------------------------