MOST IMPORTANT TERMS AND CONDITIONS OF OUR LOANS
Given below are the Most Important Terms & Conditions for getting a loan from Shubham. These will be detailed and given to a customer at the time of signing of the loan agreement and the loan will be disbursed only after we have the customers consent on these terms
|Place of Agreement
||Shubham branch name
|Date of Agreement
||Date of disbursal
|Name of the borrower
||Full name of customer
|Name of the Co applicants /Guarantor
||Full name of Co-Applicants / Guarantor
|Address of Borrower
||Customer communication address
||Sanction loan amount
|Type of Interest Rate
||Monthly or as and when required
|Applicable Interest Rate
||The current ROI offered are as mentioned in the table below.
||Rate of Interest
||12.50% to 18%
|Home Improvement Loan
|Loan against Property
|Penal Interest Rate
||2% p.m on Overdue EMI /Pre EMI
|Type of Instalment
||4th or 10th of Every month
||same as mention in sanction letter
|Pre - EMI
|Term/ Tenor (In Months)/No. of EMIs
||same as mention in sanction letter
|Administrative and Operational Costs-At Login (Non Refundable)
( inclusive of Applicable taxes)
|INR 3,600.00 (Rupees Two thousand five hundred only)
|Administrative and Operational Costs-At Disbursal (Non Refundable)
Includes charges that the company has to pay for verification including legal review and valuation pertaining to your loan. This is a non-refundable amount.
||At the time of disbursement
|upto 3 Lacs
||Rs 9500 + GST
|>3 Lacs to 6 Lacs
||Rs 13500 + GST
|>6 Lacs to 10 Lacs
||Rs 18000 + GST
|>10 Lacs to 12 Lacs
||Rs 27000 + GST
||Rs 27000 + 3% of the loan amount over and above 12 Lacs + GST
|Emi Payment Instrument Swapping charges
|Duplicate interest certificate
|Copy of property documents
|Copy of property documents
|Repayment bouncing charges
|Part payment charges
|Late Payment Charge
|Property Swapping Charge
|End use / Purpose of loan
|Use of Property
|Mode of repayment
Note:- Above fee and charges are exclusive applicable taxes (GST) or any other govt taxes ,levies etc and subject to change and will be at sole discretion of Shubham Housing Development Finance Company Ltd.
The interest calculation is on 360 days for all years during the loan tenure and monthly interest calculation is on 30 days for all months
For Full disbursal loans- Pre – Emi will be charged in the first month after disbursal which will be interest from the date of disbursal till the end of that month. The EMI as stated in the above table will commence from the subsequent month.
For Tranche disbursal loans. Pre EMI will be charged till full disbursal is made or 12 months from the month of disbursal, whichever is earlier. The EMI as stated in the above table will commence from the subsequent month.
Most important terms and conditions should be read in conjunction with the agreement schedule giving details of the loan.
- Insurance: Credit Worthiness of the Borrower and title of Property: The Borrower meets Shubham’s requirement of creditworthiness. Also Shubham should be fully satisfied that the title of Property is clear, marketable and unencumbered. The Borrower shall obtain all such permissions as may be required for creation of security interest in the Property including the right to acquire the Property. Shubham shall be entitled to make or cause to be made inquiries as Shubham may deem fit to assess the above.
- Disbursement conditions. The obligation of Shubham to make any disbursement shall be subject to the following conditions:
- Credit Worthiness of the Borrower and title of Property: The Borrower meets Shubham’s requirement of creditworthiness. Also Shubham should be fully satisfied that the title of Property is clear, marketable and unencumbered. The Borrower shall obtain all such permissions as may be required for creation of security interest in the Property including the right to acquire the Property. Shubham shall be entitled to make or cause to be made inquiries as Shubham may deem fit to assess the above.
- Non-existence of event of default.
- Extra ordinary Circumstances: No extra ordinary or other circumstances have occurred which in the sole opinion of Shubham may make it improbable for the Borrower to fulfil any of the terms and conditions.
- Pending Legal Proceedings: The Borrower shall have disclosed to Shubham about any action, suit proceedings, winding up/ insolvency proceedings or investigation pending initiated against him/her.
- Evidence for Utilization of Disbursement: The Borrower shall have produced evidence of the utilization of the Loan or any part disbursement of the Loan.
- Guarantees/Securities etc.: The Borrower if required by Shubham shall provide and execute Guarantee(s) either by themselves or such person as may be approved by Shubham. The Borrower shall duly execute all other necessary documents, writings, create security of the Property in favour of Shubham and submit Post Dated Cheques, Standing Instructions or ECS mandates.
- Utilization of Borrower’s Contribution: The Borrower shall arrange for the remainder funds required for the purpose of the Loan (i.e. the cost of the Property less than Loan). The Borrower shall not borrow the same from any other person.
- NOC etc: Where the Borrower transfers loan from other bank/financial institution to Shubham, the Borrower shall have obtained necessary permissions, letter from the existing/previous bank/institution/lender (as the case may be) and shall have disclosed correct information to Shubham.
- Subject to fulfilment of Conditions for Disbursement set out herein, Shubham shall disburse the Loan either in fulfilment of Conditions for Disbursement set out herein, Shubham shall disburse the Loan either in lump-sum or in suitable instalments as may be decided by Shubham with reference to the need or progress of construction or on consideration of any other factors as determined by Shubham in its sole discretion. Shubham’s decision to disburse Loan fully or part thereof and manner of disbursement shall be final and binding on the Borrower.
- The disbursement shall be made by Shubham by issuing a Pay Order, Cheque or a Demand Draft crossed as "A/c Payee only" or through a credit to a designated bank account, details whereof are specified in the Schedule hereto. The Loan shall be deemed to be disbursed from the disbursement request date specified in the Schedule and Interest on the Loan will begin to accrue in favour of Shubham from the said date irrespective of whether the amount has actually been withdrawn by the Borrower.
- Shubham may, at its sole discretion, disburse the Loan directly to the Borrower, builder, developer, society, any other banks/ institution/lender from whom the Borrower transfers the Loan to Shubham or in favour of any third party as may be requested by the Borrower.
- Notwithstanding the above, Shubham may , by giving reasonable notice to the Borrower, suspend or cancel further disbursement of the Loan if the Loan amount shall not have been fully drawn within a reasonable time or if due to any change in circumstances Shubham is of the opinion that there has been a Material Adverse Effect on the Borrower’s financial condition or profits or business or in any factors that were considered by Shubham while issuing the Sanction Letter including, but not limited to, reason of delay in construction of the Property.
- Shubham reserves the right to ask for additional documents of the Borrower relating to the financial status, utilization of Loan proceeds, Property, stage of construction of the Property, address & contact details, documents relating to Know Your Borrower (KYC) requirements, etc. post disbursement of the Loan. In the event such documents are not submitted by the Borrower within the time period stipulated by
Shubham, Shubham shall be entitled, without prejudice to its right to recall the Loan or exercise any otherremedy available to it, to increase the Interest Rate at its’ sole discretion after notifying the Borrower to cover the additional risk arising from maintaining such Loan.
- Adherence to all conditions as mentioned in the sanction letter and other communication from Shubham received by the borrower.
- Procedure for change in ROi/EMI: Shubham, may, at its sole discretion (or having regard to the applicable regulations, conditions in money market or in keeping with its internal policies or regulatory requirements), revise the Interest Rate and Penal Interest Rate on the Loan after notifying the Borrower and Interest Rate and Penal Interest Rate shall, from the date of such notification, accrue at such revised rate. If Shubham revises the Interest Rate on the Loan prior to the full disbursement of the Loan, it shall have a right to effect, at its sole discretion, such revised rate on the entire or any part of the Loan and the Borrower will be liable to pay such revised amounts. Shubham reserves the right to effect changes in the Interest Rates as mandated by the Reserve Bank of India or National Housing Bank from time to time. In case of change in Interest Rates Shubham may, at its sole discretion:
- Change the tenor of the Loan and EMI would remain constant or
- EMI amount would change and tenor would remain unchanged. In such an event, repayment instructions in the form of cheques, SI or ECS (as applicable) shall be revised and the Borrower shall submit new/fresh repayment Instructions to Shubham.
Notwithstanding anything herein contained, Shubham shall have the right, at any time or from time to time , to review and reschedule the EMIs, tenure or the Loan amount, with or without any request from the Borrower, in such manner and to such extent as Shubham may in its sole discretion decide. Provided that if as a result of such review / rescheduling, the original tenure of the Loan is required to be extended, the same shall be done only up to such term as is permitted by Shubham in accordance with its internal policy. In such event (s), the Borrower shall repay the Loan or the outstanding amount thereof as per the revised Schedules as determined by Shubham. Shubham shall inform the Borrower in writing by means of letter or email or SMS alert or any other mode of communication which is feasible for the company where such alteration or rescheduling involves variation in:
All changes in the Interest Rate and/or Penal Interest Rate shall be advised to the Borrowers and shall be effective only prospectively.Such changes shall be displayed on Shubham’s website and branches. Any change in the interest rate will be communicated to the customers through letter/SMS or any other means of communication, by whatever name called, feasible to the company.
- the date for payment of EMI or amount thereof; or
- the amount of interest, principal or EMI; or
- the variation results in the term of the Loan exceeding the retirement age of the Borrower (s) as applicable.
Recovery of overdues: The debt collection policy of Shubham is built around dignity and respect to Borrowers, Shubham will not follow policies that are unduly coercive in collection of Dues. The policy is built on courtesy, fair treatment and persuasion. Shubham believes in following fair practices with regard to collection of dues and repossession of security and thereby fostering borrower confidence and long -term relationship. Shubham’s Security Repossession Policy aims at recovery of dues in the event of default and is not aimed at whimsical deprivation of the property. The policy recognizes fairness and transparency in repossession, valuation and realization of security. All the practices adopted by Shubham for follow up and recovery of dues and repossession of security will be inconsonance with the law.
In case the borrower’s repayment instrument bounces in a particular month, telephonic / personal follow-ups are done to ask the borrower to pay. Any borrower who goes beyond this date and goes more than 30 Days Past Due then moves to the collection list which is tracked separately with defined actions as outlined below:
- In case the payment remains, at 30 Days Past Due, Shubham sends a letter to the borrower for paying the stated amount immediately.
- In case the payment remains at 60 Days Past Due, Shubham sends a follow up letter, namely, Notice before Taking Action (NBTA)to the borrower for paying the stated amount immediately. Through-out this period, the Officers of the company will be in regular touch with the borrower to impress upon him the importance of paying the overdue amounts.
- In case payments remains at 90 Days Past Due, Shubham sends a Loan Recall Notice (LRN) to the borrower for paying stated amount immediately.
- In case payment remains at more than 90 Days Past Due, Shubham has right to invoke proceedings under The Securitisation and Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002 (SARFAESI Act, 2002) and rules made thereunder, if any, including any statutory modification(s) or re-enactment(s) thereof for the time being in force to recover its dues. In addition to the above, Shubham has a right to send communications to such borrowers, as and when due as per the Loan agreement executed between Shubham and Borrower.
- Further, Shubham has a right to invoke proceedings under section 138 of Negotiable Instrument Act or any other applicable law to recover its dues.
- Branch Timings: All branches are open from 9:30 am to 6:30 pm, six days a week. Sundays, 2nd and 3rd Saturday of the month are weekly off for the company.
- In case of any service related issue, borrower can contact the Branch In -charge. Any escalations thereafter should be addressed to:
Customer Support Manager
Phone no : 18002582225
Email : firstname.lastname@example.org
- Loan account statement: The Loan account statement for the financial year shall be sent, free of cost, once in a period of April to July of succeeding financial year via electronic mode (includes email/web-link/SMS link at registered mobile number or email ids of borrower etc) or by hard copy at given corresponding address, as per the feasibility of Company,. Supply of duplicate statement shall be furnished to the borrower at his cost
- Photocopy of the title documents: The borrower can apply for a copy of the title documents which he has submitted within 30 days of the disbursal of the loan at the branch which has disbursed the loan. The document will be made available within 30 days of the application/or receipt of the document from the relevant registration office.
- Closure Process: The borrower can apply for the closure of his loan at the branch which has disbursed the loan before 25th of any month. The loan will be closed within 15 days of the receipt of application and the property documents will be handed over within 30 days of closure of the loan.
- Grievance Redressal
In case any customer is not satisfied with the resolution provided by Shubham, then they may write to NHB at email@example.com or may approach the Complaint Redressal Cell of National Housing Bank by lodging his complaint
- in Online mode at the link https://grids.nhbonline.org.in
- in offline mode by post, in prescribed format available at link
http://www.nhb.org.in/Grievance-Redressal-System/LodgingComplaint-Against-HFCs-NHB%E2%80% 93Physical-Mode.pdf, to
Complaint Redressal Cell,
Department of Regulation & Supervision,
National Housing Bank,
4th Floor, Core 5A, India Habitat Centre,
Lodhi Road, New Delhi – 110 003
(with effect from 23-May-2019)