Housing Loan
NULBSL uses a very specific targeting strategy to ensure that all first-time clients are very poor. As one of the targeting criteria is the absence of cement walls or ceiling in the client’s house, there is a strong demand for various types of housing loans. To access the housing loans the clients must have maintained strong credit discipline in the previous years, have improved economic condition from previous loans, and be willing to contribute at least 20 percent equity (10 percent cash and 10 percent in-kind). NULBSL charges an interest rate of 15 percent on a declining balance with monthly repayments.
- House Construction Loan: available to clients who meet the above requirements and have taken general loan. Members generally construct a new house on their current property with this loan.
- House Repair Loan: available to clients who meet the above requirements and have completed the first loan cycle of the general loan. This loan is used to make capital improvements like replacing a roof on a current house.
- Homestead Purchase Loan: available to clients who meet the above requirements and have borrowed general loan. This loan allows members to purchase a small amount of land.
The loan size, loan term and other conditions for housing loans are as follows:
Loan Type | Maximum Loan Size Rs. | Loan Term | Annual Interest Rate | Repayment Frequency |
---|---|---|---|---|
House construction | Upto 7,00,000 | 5 Years | 15% per annum | Monthly |
House repair | Upto 40,000 | 2 Years | 15% per annum | Monthly |
Homestead purchase | UPto 3,00,000 | 5 Years | 15% per annum | Monthly |
Toilet/Laterine | Upto 30,000 | 2 Years | 15% per annum | Monthly |