EQUITABLE MORTGAGE (EQM)

Mortgage by deposit of Original title deeds, with the intention to create equitable mortgage. In some states it is required to be registered with the sub registrar and in some states it is not. To prove the intention an attendance register is maintained at the bank which should be signed by the owner of the property himself.

In case of NRI's the power of attorney holder who is the close relative of the NRI can create mortgage on behalf of the NRI. Bank may accept power of attorney executed before the Indian Embassy official.

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Loan Against Property

Loan Against Property popularly known as Mortgage Loan is popular amongst businessmen as it is a good alternative to personal loan. People get attracted to this product due to its low rate of interest (especially among nationalized banks) and its flexible tenure (maximum of 12 years). The procedures are simple and banks usually do not insist upon the end use of the amount financed. The only eligibility criterion is the income of the customer approaching for the loan, it is measured on the basis of Form16 in the case of salaried individuals and last 3 years IT returns in the case of businessmen and self employed individuals. The value of the property to be mortgaged is also an important criterion for arriving at the loan amount.

1. Purpose:

To meet the credit requirements for business, education, repair renovation extension of residential and commercial property or to purchase construct personal property and also for other personal requirements.

This facility should not be extended to speculative purposes like buying and selling of shares or real estate. So builders and stock brokers should not be financed.

2. Target:

Businessmen, Professionals, Self Employed people with high networth and salaried people are eligible for availing these loans subject to banks guidelines.

3. Insurance: 

The property mortgaged should be kept insured to the full value of asset including fire, natural calamities, riots and earthquake. Vacant lands are exempted from getting insurance coverage.

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Housing Loan

Purpose Of Loan

a) To purchase/construct house/flat on ownership basis. Includes purchase of already constructed flat/house which has at least future life equal to 1. times of the stipulated repayment period.

b) To renovate/extend/repair existing house flat.

c) To purchase a plot of land. Only composite loan for purchase of loan along with construction of house to be considered. An undertaking should be obtained from the borrower that he/she will construct a house on the said plot within a maximum period of 18 months from availment of advance failing which Rate of Interest at Commercial Rates will be applicable.

d) To acquire household articles for furnishing house/flat

Insurance Coverage

Sum Insured shall be Home Loan amount and Insurance Premium shall be one time premium for the tenure of the loan.

Eligible components for Home Loan:

i) Cost of the Plot of Land.
ii) Cost of Construction.
iii) Stamp Duty and Registration Charges.
iv) Expenses for furnishing the House/Flat.
v) Cost of Flat in case of Purchase of Flat.
vi) Payment towards extra amenities like Parking slot.

Eligible Borrowers

i) Permanent Salaried Employment.
ii) Professionals like Doctors, Lawyers, Engineers, Chartered Accountants etc.
iii) Self employed Persons having regular income.

Age

Normally housing finance should not be extended to retired persons and persons above 65 years.

Income

For Salaried:

1. Latest Annual Salary Certificate (Form 16).
2. Copies of Income Tax Returns for last 3 years.

For businessman:

1. Copies of Financial Statements (preferably audited).
2. Income Tax Returns for last 3 years.

Note:- Even though ITR's are available for last 3 years, eligible quantum of home loan is to be arrived at on the basis of the latest ITR. Care must be take than the latest ITR is not inflated.

In case latest ITR is only available and the ITR for previous years not available adequate documentary proof to be obtained such as Annual Salary Certificate/ Form 16.

For purchase of second house the customer may intend to let out his existing or new house being purchased out of bank finance. In such cases the rental income may also be considered for calculating EMI.

CO-Borrowers

The family members of the borrower can be considered as Co-borrowers even if they are not joint owners of the property to meet the Income/EMI Criteria. They may include Husband/Wife, Parents/Parents of Husband, Son, Daughter/ Daughter in law etc.

Margin

The borrower has to contribute a suitable portion of the Project Cost from his/her own pocket. This is called the Margin. This is usually 20% for 1st Home and 25% for 2nd or subsequent Homes.

Net Take Home Pay/Income

It is the portion of the Income left with borrower after meeting the EMI requirements. It should not be less than 40% of his gross salary/income.

Credit Information Report

Generation of Credit Information(CIR) is mandatory. Most popular Credit rating agency providing this service is Credit Information Bureau of India Ltd. (CIBIL). It provides information related to the customers previous Credit history and provides a suitable risk rating for the customer.

Calculation of Quantum of Loan

72 times of gross monthly salary OR 6 times of gross annual income based on Income Tax Return.

Security

Equitable Mortgage of land/flat/house proposed to be financed.

Legal Opinion/ Search and Title Clearance Report

A Legal opinion has to be obtained regarding the title of the documents from the bank approved panel advocate to avoid any legal complications after the loan disbursement.

Valuation Report

A Valuation Report has to be obtained from the bank approved Panel Engineer to ascertain the marketable value of the property.

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MY STORY WHEN I PASSED OUT AS AN ENGNEER AND WHEN I GOT SELECTED AS A BANK EMPLOYEE

Doesn’t seem to be synonymous right? What does an Engineer do in the Bank Industry? Well to be frank I was a person who lived on the flow. I didn’t try to steer my life at any point till I completed my graduation. You may find me in yourself. I was less of a reader and didn’t had any aim or dream in my life. My father was an Engineer, in fact a Civil Engg. So as usual he wanted one of his son’s to be an engineer. My brother pursued academics in Political Sciences (An Arts subject). So the only hope for him was me. He asked me you wanted to be an Engineer. I said yes. May be because I doesn’t know what is engineering? I don’t know whether it will suit my tastes. If at all I would have said No, I don’t know what else suits my tastes. 

I presume that this happened because during my school days learning was like mugging up some theories and passing in the exam. Most of the students didn’t bother of the subject after the exams nor do they try to find their interests and learn more about it. Our learning was confined to the textbooks and the syllabus. I’m not trying to be philosophical or trying to bore the readers, but it is a truth. We need to seriously think about the education system that exists.

Coming back to my story, I wrote the state entrance examination and got in the list of students who qualified. But the rank that I got is not worth to be mentioned. My father understood that, given my rank I’m not going to get a seat in the Government Quota. He came with a bunch of broachers from various private engineering colleges; the next question is “What course do you want to pursue”. I went through the broacher, went across the pictures of the labs and all and said “Electronics and Communication”. It was decision made in minutes. May be I wanted to learn it because I was slightly comfortable with Physics or may be some other unknown reasons. I joined the course in a private college in the suburbs of the city.

There the same system continued. Mugging up some theory and clearing the exams. Although I was better than many others in the number of supplementary exams that I wrote, I had 7 papers due when I passed out in April 2011. I cleared those papers in the next special supplementary held in November 2011.

During my engineering I haven’t researched or thought of where to pursue a job and how. It’s when I passed out the question came to my mind “Where to pursue a job and how?” I consulted my cousin who was working in an IT company. She suggested doing a course in software. I was quiet poor in Programming. Still I took the decision to do a course in Java from one of the leading Software training institute in India. I completed the course in 5 months. Did the project work and somehow finished the course. But all through the course one question haunted me “Is this your cup of tea”. My inner heart said a “BIG NO”. But still I was stuck in a Dilemma. If at all you drop out this path “where is the alternate path?”

On one day I broke out and said to my mother that I cannot pursue this path. She stood by my side and said “Don’t worry if you can’t. Leave it we will find other ways.”

I asked to myself what should be the other path. Where should I pursue a job? Which way suits me. In fact I started thinking. I became more mature. When I scanned through my life from the beginning I understood that the biggest problem with me was I didn’t think at all. Not thinking is as bad as Thinking too much. There should be a balance.

I recollected that when I passed out I wrote various competitive exams. One among them was the IBPS CLERK I. Without any effort or preparation I managed to qualify and acquire a Score Card. Although the score was too low to be called for interview, I understood that if I can give a little more effort I can crack the exams next time.

I took a considered decision to join a coaching institute in the City to start the preparations. During my preparations, almost at the time when the IBPS exams where approaching I got an offer for a Job in the Gulf. But I didn’t give up. I gave up that offer for the sake of the IBPS exam. This might be because I had the confidence of clearing the exam.

I appeared for the IBPS CLERK and SBT CLERK exams and cleared it. But my marks were just above cutoff marks for attending the interview. I was quiet excited and prepared for the interviews day and night. But the fact was that merely getting the cutoff mark has very feeble chance to get the final selection no matter how good you score in the interview. But I was not aware of it.

I attended the interview for SBT Clerk and scored 34/35 and the IBPS Clerk and scored 15/20. In fact I went through a lot of trauma when I was attending the SBT Clerk interview. My grandfather was hospitalized and was suffering serious ailments. Still I performed well in the interview which showed in my marks.

Still you would wonder I didn’t get selected in either of the posts. I was totally shattered. Still I was hoping for getting IBPS CLERK in the second list. In the meanwhile I got a call from an Electronics manufacturing firm under the State Government for apprentice trainee post. But the post was actually a Marketing Job. Again I was in Dilemma. I took a bold decision not to pursue it and continue preparing for the IBPS exams.

In the meanwhile many of my close relative and so called ‘WELL WISHERS’ asked me “You are an Engineer, why are you trying for a job in the banking sector, Why don’t you look for a job in the IT sector or in your core field, Why are you wasting time in preparing for these exams”. I kept smilingJ. 

Well in my mind I asked “Will you give me the Job. I’m not here to satisfy or please others. I’m for myself and I will choose my path. Not You.”

HERE COMES THE TURNING POINT.

May be these questions rang on my mind periodically. The trauma that the society gives to a young graduate looking for a job is far bigger than his/her family.  But a very few overcome these trauma.

“I must prove myself to the society that I’m right”.

I started preparing for the IBPS PO and CLERK III rigorously. I changed my coaching institute to some other in the same city not because the former was bad but because I need a change so that I do not loose the seriousness. I continued the hard work. Practiced as many questions I can and cleared the IBPS PO exams with mark which I can’t even imagine as compared to my past record.

The result of the IBPS PO exam came on just before the day when my IBPS CLERK exams were scheduled. But I didn’t check the marks for the PO exams as I was worried. I attended the IBPS CLERK exam which was quite difficult and may be due to the issue of time management I wasn’t able to attend enough questions. I was shattered. I literally cried in front of my family when I came home. My mother said “Leave it and check your IBPS PO marks. You might be getting better marks there.”

I checked my marks in IBPS PO III, I was shocked. I got 87/200, were the cutoff marks were 61/200. I jumped in joy. Took a printout of the mark sheet and went to my family.  In fact later I also came to know that I cleared the IBPS Clerk exams although the marks where not that bright.

THE BIGGEST TEST OF MY LIFE WAS YET TO HAPPEN

My IBPS PO Interview. I was happy and prepared for the interviews in advance with my friends who qualified for the interview. The Interview dates were approaching. Just a week before the interview date I was diagnosed with Chicken Pox. By the time the interview came my body was full of boils and scars. My mind went blank. Will all the preparations that I made in advance become useless? Still my family members stood by my side and said we will face it together. They gave me the confidence that nothing will happen and you should face the interview no matter what happens. There is in fact no chance of postponing the interview procedures as it was the last date of the whole interview procedures.

The day of interview came. I firmly decided that I will attend the interview and face the panel boldly. I reached the interview venue. I saw everyone standing in the car parking space. I went inside, everyone who saw me were staring at me in surprise. But I kept the cool and went inside. It was a do or die situation. I signed the registry and went inside. For a while I and one of my friends talked with each other. Also saw a few other friends. The officials called everyone to the conference hall. The document verification was over. And then I was called in front of the cabin were the interview is proceeding. One of the Candidates near me asked “What happened to your face?” I said “It’s an allergy. J”.

I was called inside the cabin. I took a deep breath, asked permission and went inside. They asked me to take a seat. Surprisingly they didn’t ask any single word about the deformity in my face. I answered their questions boldly and happily and came back.

Well I’m Happy to say I’m now a Probationary Officer in Bank of India. Why this happened? Well I would say the ability to take bold decisions and to face unforeseen challenges has gained me this Job.
NO MATTER WHAT OTHERS SAY OR THE SO CALLED ‘WELL WISHERS’ THINK PURSUE YOUR DREAM AND WORK HARD TO ACHIEVE IT YOU WILL GET THROUGH.

“You are an Engineer, why are you trying for a job in the banking sector, Why don’t you look for a job in the IT sector or in your core field, Why are you wasting time in preparing for these exams”.

“WELL I CAN PROUDLY SAY I GAVE THE ANSWER TO THAT OLD QUESTION.”

DON’T EVER GIVE UP…

JAI HIND.

THANK GOD.

For those who are preparing for theIBPS, SBI and other Bank exams here is a list of questions that I attended andthe marks that I obtained: CLICK HERE

To know how tocalculate combined score of interview and written exam or to calculate yourinterview score from your combined score: CLICK HERE

 

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List of questions that I attended and the marks that I obtained in IBPS PO- III

IBPS PO- III

WRITTEN EXAMINATION

No of questions attended in each section:

Reasoning- 24/50

English- 17/40

Quantitative Aptitude- 16/50

General Awareness- 20/40

Computer Awareness- 16/20

TOTAL SCORE- 87/200

CUTOFF MARKS FOR GENERAL- 61/200

INTERVIEW SCORE- 67/100, 13.4/20

COMBINED SCORE- 48.2/100

MY FIRST 5 PREFERENCES:

1. Bank of India.

2. Bank of Baroda.

3. Corporation Bank.

4. Indian Overseas Bank.

5. Punjab National Bank.

IBPS CLERK- III

 

WRITTEN EXAMINATION

No of questions attended in each section:

Reasoning- 26/40

English- 18/40

Quantitative Aptitude- 28/40

General Awareness- 21/40

Computer Awareness- 32/40

TOTAL SCORE- 119/200

CUTOFF MARKS FOR GENERAL- 109/200

INTERVIEW SCORE- 70/100, 14/20

COMBINED SCORE- 61.6/100

MY FIRST 5 PREFERENCES:

1. Bank of India.

2. Corporation Bank.

3. Indian Overseas Bank.

4. Bank of Baroda.

5. Punjab National Bank.

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How to calculate combined score of interview and written exam or to calculate your interview score from your combined score?

Combined Score is calculated using the following methodology:

Your written exam score out of 200 is converted to marks out of 100-

For example: If your written exam score is 80/200 then,

(80/200)*80= 32 out of 80

Similarly your interview score out of 100 is converted to marks out of 20-

For example: If your interview score is 70/100 then,

(70/100)*20= 14 out of 20

Now Combined Score = Written examination Score out of 80 + Interview Score out of 20

                                = 32+14= 46/100.

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