House of your own is everybody’s dream. You sacrifice your precious time, leisure to make this dream a reality. Perhaps it may be the main reason you are working abroad, to earn something to build a house to live with your loved ones. You don’t have to wait until you return back to start constructing your dream house. Many Sri Lankan Banks now, offer housing loan facilities with a host of special concessions to enable Sri Lankan migrant employees abroad to obtain housing loans. I am going to describe the procedure at National Savings Bank’s Housing Loan scheme as it has many value added features compared to other Banks. Who are eligible to request for a Housing Loan?
What else I should do upon eligible to apply for the Loan?
- Permanently employed abroad and in receipt of a monthly salary.
- Employed abroad on contract basis and in receipt of a monthly salary.
- Self-employed abroad and in receipt of a monthly income.
|For those who employed in Italy||For those who employed in other countries|
|1.A Letter from employer (with English Translation) confirming the following.i) Designation ii)Whether confirmed or not iii)Monthly Salary||1.A Letter from employer confirming the following.i) Designation ii)Whether confirmed or not iii)Monthly Salary|
|2.Service Contract (if any) with English Translation||2.Service Contract|
|3.Pay slips for the last 6 or at least 3 months with English translation for the last one.House maids can submit the receipts of tax paid by the employer for the last two quarters.||3.Pay slips for the last 6 months|
|5.Passport Copy||5.Passport Copy|
|6.Identity card issued by Italy||6.If work in a ship/vessel - CDC|
|7.Bank Accounts Statements for the last six or at least three months with English Translation for the last one.||7.Bank Accounts Statements for the last six months .|
- Open a NRFC/RFC Account at the Bank
- Appoint a Power of Attorney to act on behalf of yourself and ask him to keep the original with two photo copies of the same to attend at Bank when necessary.
- To construct or purchase a house of your own.
- To purchase a block of land to build a house.
- To complete construction of a new house or for extensions/repairs of an existing house.
- To repay a loan obtained from a recognized financial institution for housing purposes.
- Nature of the applicant's contract of employment and his repayment capacity.
- Age of the applicant.
- Value of the property to be mortgaged.
- Purpose of the loan applied.
- For those who employed in Italy, Loan installment equivalent to 50% of Net Income.
- The repayment period is 05 years. However, this could be extended up to 10 years, depending on the nature of the contract of the employee.>
- The maximum age limit before which you should complete your repayment of the loan is 65 years.
- Local authority documents.(Street Line, Assessment Tax paid, Ownership, Non Vested)
- Extracts from the land registry
- Approval of survey plan.
- Title report
- Valuation fee.
- Inspection fee.
- Credit Information Bureau fee.
- Mortgage Bond registration fee.
- Title Insurance Policy fee (if applicable).
- Fire Insurance Policy fee (if applicable).
- Service charges
- Up to Rs 1,000,000/- (Minimum)9,000/-
- Rs. 1,000,000/- -- 2,000,000/- 10,000/-
- Rs. 2,000,000/- -- 2,500,000/- 11,500/-
- Over Rs 2,500,000/- (Maximum)15,000/-
- Loan amount up to Rs. 500,000/- 10% p.a
- From Rs.500,001- to Rs.1,000,000/- 12% p.a
- Above Rs.1,000,001/- 12.5% p.a
Sandun joined Lanka Help Magazine as a contributor in June, 2011. He has been consistently writing articles to our magazine. Many useful articles of this site are under Sandun's name.
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