Case Study Housing Loan
Eventually, he, in consultation with his Emily have chosen a built up property ( apartments) In a relatively decent residential area In the city. The builders rate for the apartment, Inclusive of parking and preferential location charges, excluding registration is RSI 45 lacks of which the builder demands a minimum of 20% in cash and the balance through payment in Instruments. Santayana has worked out that while the builder’s cash component can be met with his personal funds, he would require a loan of minimum RSI 30 lacks.
For this he approaches his long time banker, Crossroad Bank at the Erode branch, where e is currently posted. The Branch Manager, Mr. Inward, who is old acquaintance and distantly related to Santayana is well disposed at a personal level, but Is also keen that no norms are flouted, especially because, Just a month ago, there was a circular from the Zonal office that no deviations in Housing Loan guidelines would be permitted. C.
The Loan Request – Customer Interview As a conscientious bank officer, Mr.
Inward, diligently proceeds to elicit the following Information from Mr. Santayana Expected monthly income of Mr. Santayana post detriment – RSI 15,000,’- current monthly Income of his married son ( who Is staying with him) – RSI 40,000/- He has an NCSC certificate for RSI 1 lace maturing after 2 years, which he has earmarked for his daughter’s marriage expenses He also has a Whole Life Policy with a surrender value RSI 1 lace He also has an Endowment LICE Policy In his name.
This Is for 1 lake Son has a vehicle loan ( 4 wheeler) with an MME of RSI 8000/- and an outstanding balance of RSI 48,000/- His daughter-in-law is working on contract basis with a local private school that offers her RSI 7,500 per month She also earns RSI ,000/- from private home tuitions His daughter Saving works for Indian postal Office for a monthly gross salary of RSI 15,000/-. Saving has an existing 2 wheeler loan with an MME of RSI 4,000/- with an outstanding of RSI 12,000/- Mr.
Santayana is particular that the flat should be registered Jointly in his and his wife’s name.
His son Mr. Raja is a soft ware engineer and earns a monthly Income of RSI 30000 per month and a bonus ranging from RSI 10000 to 15000 per month. D. Loan Decision Mr. Inward thanks Mr.
Santayana for the Information and suggests that they meet the allowing day to find out what Is the best loan eligibility. Q 1 want 010 Mr. Inward compute as ten maximum loan illegal TTY Tort Mr. Santa with the above information Q-2: In the best case situation, who would be the borrowers?
And Why? Q-3 : Who can be the guarantor? And Why? Manama Q-4 : What are the terms and conditions to be stipulated? Explain the rationale of each of the terms? Q-5: What are the documents required? What is the relevance of each document? E. Notes for Debriefing Part 1 a. Each of the groups have to answer all the questions within the group.
B. At the ND of 20 minutes, the instructor will call out each question and each group may answer in a round-robin fashion.
