HBFC is striving to be a socially responsible and commercially sustainable housing finance institution.

 

PARAMETER CRITERIA
Purpose To finance the customers who are willing to install solar systems for the generation of electricity ranging from 3KW to 20 KW with or without net metering.
Type of Housing Finance Home Renovation
Facility Amount

Minimum: Rs. 300,000/-

Maximum: Rs. 3,000,000/-

Facility Tenor

Up to ten (10) years.

Pricing

(Mark-up / Profit Rate)

Fixed at 6.00% per annum

 

SBP’s Refinance Rate

Maximum HBFC’s Spread

Maximum End User Rate

2.00%

4.00%

6.00%

Loan To Value (LTV) Ratio

Up to 80%* of market value of the mortgaged property

(financing up to 100% value of solar equipment)

Total exposure of HBFC on the property

Debt Burden Ratio (DBR)

Up to 50% of net disposable monthly income as per relevant slab

Repayment

Equal Monthly Installments (EMI)

Security / Collateral

 Hypothecation charge on Solar Equipment

 

a)  For facility up to Rs. 500,000/-

Equitable Mortgage of Home for the total marked-up/payable amount and lien marking to be done with relevant authority.

OR

Pledge of liquid security like TDRs, DSCs etc. and Life Insurance Policy (with acceptable surrender value) with minimum 10% margin.

 

b)  For facility above Rs. 500,000/-

Equitable Mortgage of Home for the total marked-up/payable amount and Token Registered Mortgage (TRM) of Rs. 25,000/- shall also be created (for properties falling in revenue record only) alongwith lien marking in relevant records.

OR

Pledge of liquid security like TDRs, DSCs etc. and Life Insurance Policy (with acceptable surrender value) with minimum 10% margin.

 

Note:With the approval of Credit Committee, HBFC will start accepting applications for this product against the mortgage security offered by any person not necessarily having blood relation with the applicant in the capacity of guarantor to facilitate the securitization process.

Facility of

Applicant /  Co-Applicant / Guarantor

Primary or Single Applicant

  • Co-Applicant(s) means the person who jointly applies with the primary applicant for financing. Co-applicant ONLY in case of spouse, son, un-married daughter, un-married sister brother and parent are allowed.An applicant / co-applicant who does not have sufficient or any income, may also be considered for financing if he / she is able to provide guarantee of minimum one person who has requisite level of income.

 

  • Guarantor(s) means any person other than the applicants, who is willing to guarantee the repayments of HBFC financing, availed by the applicant(s). Guarantor must be a family member having inheritance rights in the property to be mortgaged.

Income Clubbing

  • Income of applicant, co-applicant(s) and guarantor(s) may be clubbed for the purposes of income estimation.
  • For the purpose of income estimation, the income of maximum two individuals (applicant / co-applicant / guarantor) can be clubbed for the purpose of income estimation.

Financing Admissibility and Debt Burden Ratio (DBR) of applicant(s) / guarantor(s) income for the purpose of income clubbing shall be calculated on the basis of DBR limit of the individual’s net disposable monthly income.

Tenure of Financing will be determined respect to the age of the eldest applicant(s) / guarantor(s) till he / she attains the age of 60 (for salaried) and 65 (for SEB / SEP) as per the decision of Credit Committee, but maximum financing tenure shall not exceed 10 years. 

 

Insurance / Takaful Coverage

  •  Mandatory applicant(s) / guarantor(s)  life insurance at preferential rate through Insurance Companies enlisted on HBFC’s Approved Panel.
  • Mandatory insurance / takaful of solar equipment and collateral at preferential rate through Insurance Companies enlisted on HBFC’s Approved Panel

Balloon Payment

Subject to the observance of the following:

 

  • Upon written request from customer.
  • Amount of balloon payment must be greater than or equal to 10% of the principal outstanding at that stage.
  • No additional charges.

Early Termination

No additional charges

Solar Energy Partner

(Vendor)

On HBFC’s approved Panel (or listed by Credit Committee) who are registered on Alternative Energy Development Board (AEDB)

Release of PaymentS

 Shall only be made to the authorized Vendor(s)

Up to two tranches

Processing Time

Within a maximum period of 03 weeks, from the date of receipt of complete information / documents from the customer

Personal References

  • Two personal references (other than guarantors) shall be provided by the Customer.
  • One relative and other office colleague / friend, not living with the customer for verification purposes who can assist in the collection effort (if required).
Last updated on: 28 Sep, 2022