CREDIT POLICY

[Link]

Credit
Policy

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Policy Amendments
Reference Subject Amendment Effective Date
Credit Policy Version_2 Credit Policy 1. FOIR Grid based on income norms November, 2017
2. Changes in LTV norms.
Credit Policy Version_3 Deviation Matrix 1. LTV Deviation up to 5% delegated to RCM November, 2018
2. LTV Deviation up to 10% delegated to NCH
3. CIBIL Score Deviation delegated to NCH & NBH
4. Age Deviation up to 5 years delegated to RCM
5. Age Deviation up to 10 years delegated to
NCH & NBH
Credit Policy Version_4 Portfolio Buyouts 1. Exposure Cap based on Entity's Rating May, 2019
2. Exposure cap based on Entity's AUM
Credit Policy Version_5 1. Product Description 1. Introduction of NRI Home Loan Policy November, 2019
2. Loan amount 2. Revised loan amount and LTV norms at
3. LTV Ratio product level.
Credit Policy Version_6 1. Other Product 1. Increasing PBO Exposure ceiling in line with November, 2020
2. Deviation & NHB Norms
Delegation 2. Delegation of sanction limit
3. Loan amount 3. Revision of loan amount at product level
4. Negative Profile 4. Revision of negative profile list

Credit Policy Version_7 1. Deviation & 1. Delegation of sanction limit May,2022

Delegation

Credit Policy Version_8 1. Portfolio Buyouts 1. Revision of exposure cap Oct,2022

2. Loan amount 2. Revision of Loan amount at product level
3. Loan tenor 3. Revision of Loan tenor at product level
4. Technical guidelines 4. Removed and added to technical policy
5. Negative Profiles 5. Revision of negative profiles list
6. Caution Profile 6. Revision of caution profiles list
7. Deviation matrix 7. Revision of deviation matrix
8. Delegation Matrix 8. Addition of ZCM

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Contents
Policy Amendments ................................................................................................................................................................... 2

1.1. Objectives: .................................................................................................................................................................... 4

1.2. Product Description ...................................................................................................................................................... 4

1.3. Portfolio Buyouts .......................................................................................................................................................... 5

1.4. Product Positioning ...................................................................................................................................................... 6

1.5. Rates & Charges............................................................................................................................................................ 6

2.0. Segments and Geographies .......................................................................................................................................... 6

2.1. Target segments ........................................................................................................................................................... 6

2.2. Geographic Segments ................................................................................................................................................... 6

3. Underwriting Parameter ............................................................................................................................................... 7

3.5. Income and Ownership Patter ...................................................................................................................................... 8

3.6. Maximum FOIR Norms.................................................................................................................................................. 8

3.9. Computation of LTV ...................................................................................................................................................... 9

4.2. Bureau Check .............................................................................................................................................................. 10

5.1. Login Checklist ............................................................................................................................................................ 10

5.2. Pre-Disbursal Documents ........................................................................................................................................... 11

6. Income Calculation Guidelines .................................................................................................................................... 11

6.1. Eligibility calculation basis income .............................................................................................................................. 11

6.3. Banking Product in Home Loans ................................................................................................................................. 12

7. Home Loans to Non-Resident Indians (NRI’s) .............................................................................................................. 13

8. Home Loan Takeover and Enhancements ................................................................................................................... 15

9. Credit Scoring ............................................................................................................................................................. 16

10. Other Product Norms.................................................................................................................................................. 16

13.1. Negative Profiles ........................................................................................................................................................ 18

13.2. Caution Profile ............................................................................................................................................................ 18

14. Deviation and Delegation ........................................................................................................................................... 18

15. Credit and Process Deviation Approval Matrix............................................................................................................ 18

16. Annexures: ................................................................................................................................................................. 19

Annexure 1 .............................................................................................................................................................................. 20

Annexure 2 .............................................................................................................................................................................. 27

Annexure 3 .............................................................................................................................................................................. 33

Annexure 5 .............................................................................................................................................................................. 36

Annexure 6 .............................................................................................................................................................................. 39

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1.1. Objectives:
The broad objectives of the Company’s Loan Policy are:
• to provide general guidelines for making loan decisions and shaping the overall portfolio of the Company with
minimal credit risks
• to build and sustain a high-quality credit portfolio well diversified in terms of clients, markets and products with
an acceptable risk adjusted yield
• to strengthen the risk management systems for appropriate pricing of credit risks and ensure close monitoring of
the quality of the portfolio.

1.2. Product Description

HHF’s primary business is secured lending for acquiring / construction of the housing units the underline security will be
the property that is financed. HHF offers following loans.

a. Home Purchase New/Existing - Loans availed to acquire a ready to occupy residential flat/individual house
property.

b. Self – Construction - Construction of a residential property where the customer already owns a plot.

c. Refinance - HHF also provides loans to refinance Home loan where the customer purchased/constructed the house
within 1 year to replenish funds used in the purchase/construction

d. Composite Loan (Plot + Construction) - Composite Loans give an opportunity for individual customer to purchase
of residential plot of land and also loan to construct residential property on that land i.e. composite loan that
covers the cost of the plot of land as well as the construction cost.

e. Home Improvement Loan – The interiors of any home reflect the personal preferences and tastes of its owners
making it imperative to constantly upgrade to keep up with changing times. With Home Improvement Loans
customer can now renovate existing space for a more comfortable environment and a better quality of living.
This renovation loan facilitates internal and external repairs and other structural improvements like Painting,
Waterproofing and Roofing, Plumbing and Electrical Works, Tiling and Flooring, Grills, Aluminum Windows
compound walls and much more. Home Improvement Loan is offered to facilitate improvement of a self-owned
dwelling unit to existing or new customer. Home Improvement Loan considers a range of facilities internal or
external to the structure without increase in the living space

f. Home Extension Loan – HHF provides Home Extension Loans for adding more space to your existing home for
meeting the requirements of growing family be it an extra bedroom for children, a reading room or a cozy coffee
corner. HHF make it easy to extend home anyway.

g. Balance Transfer loan - Balance transfer of loan is the process where a customer transfers his outstanding
principal amount to another bank/FI. HHF provides balance transfer loan along with home improvement and
home extension, following are the requirements.

h. Home Loans for NRI - An Indian citizen who holds a valid document like Indian passport and who stays abroad for
employment or for carrying on business or vocation outside India or stays abroad under circumstances indicating
an intention for an uncertain duration of stay is an NRI.

i. Loan Against Property - Loan against property (LAP) is also known as ‘Home Equity Loans ‘and is basically a kind
of loan against the security of one’s property. LAP is designed to meet the financial needs of a person who already
owns a house, which is free from any encumbrance (i.e., it is not given as security for any purpose).

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1.3. Portfolio Buyouts

A. Acquisition of Portfolio of receivables may be done through one of the following models:

a) Direct Assignment of Receivables

b) Securitization, including NCD’s
c) Investing in PTC offered by SPV
d) Secured Term Loans

In all the above models, the Company may acquire the portfolio of receivables from other non-banking finance
companies only after carrying out due diligence of the pool that is being acquired and the pool that is being acquired
shall be rated/evaluated by an approved rating agency.

In case of PTC transactions, the minimum acceptable rating would be BBB+ for the pool. For Direct assignments, the
credit rating agency would quantify the expected loss % range based on which a haircut % could be decided for each
deal. In case of PTC transactions, the seller shall provide cash collateral based on the rating of the pool as advised
by the Rating Agency.
For Direct assignment transactions, the minimum retention ratio (MRR) would be in line with extant regulations

Maximum Cap & Overall Exposure

The criteria governing the portfolio buyouts are as mentioned below
Max.% of Borrowing
Rating Entity AUM (B) Exposure Ceiling (A) Additional Requirement
A (-) and above 15%
Personal Guarantee of the
BBB+ & BBB 10% promoters holding > 51%
BBB- 10% stake
*BB+ and Unrated In line with NHB regulations
Companies 8%

DA-Takeover 25%
*Any deviation on the above shall be submitted to Board for approval

B. Due Diligence process for portfolio buy out:

For Direct Assignment, the management team of HHF should have a detailed discussion with the senior management
team of the originator to understand the risk perspective and outlook of the originator. The Direct Assignment pool
should be subjected to 100% audit by HHF’s empaneled auditors.
For PTC deals the extent and process of due diligence should be in line with the RBI instructions and sample audit of
the pool will have to be conducted by HHF or by an outsourced agency at the discretion of the HHF management and
depending the merits of each deal.

Advances to other HFC for on-lending

The Company may also explore the possibility of providing advances/Term loans up to ten years to other reputed
HFC’s/Home Loan Lenders registered with RBI, proceeds of which shall be utilized by the borrowing company for
making loan disbursements towards financing of Housing loans/ loan against properties in accordance with the loan
underwriting norms of the company concerned which should, prima facie, be acceptable to the Company on or before
the expiry of the term of the loan, the borrowing company shall liquidate the advance either by repayment as per the
terms of sanction along with interest as stipulated/or if agreed to by the Company, by assigning receivables in favor of
the Company duly complying with RBI guidelines on Direct Assignment / securitization of Receivables.
During the period the advance is outstanding, it shall be secured by specific first charge on the underlying receivables
of the HFC which should be Standard Assets and provide minimum 100% cover. The charge shall also be registered
with Registrar of Companies.

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1.4. Product Positioning

o Self-Construction
o Home Purchase - New/Re-sale
o Composite Loan
o Home Improvement Loan
o Home Extension Loan
o Refinance
o Balance transfer Plus Top-up
o Home loan to Non-Residential Indian
o Loan Against Property

1.5. Rates & Charges

Interest rate would be either fixed or floating linked to HHFL reference rate (HBRR- Hinduja Benchmark Reference rate)
notified by the Board from time to time. All other charges such as Processing fee, commitment charges, pre-closure
charges and other service charges etc., are also payable. For any delay in payment a penal interest will be levied.
Borrowers have the option to pre-close the loan either in part or in full with the pre-closure and other charges (if
applicable)

2.0. Segments and Geographies

2.1. Target segments
o Salaried
o Self-employed professionals
o Self-employed non professionals
o NRI Salaried only
o Proprietorship firms
o Partnership firms
o Private limited companies
o Unlisted and Closely held Public limited companies

2.2. Geographic Segments

a. Target Market/Product Positioning - The target market for HHF’s home loans product is the Urban, semi-urban
and rural area. Geo limit of the property / customer has to be a maximum of 50 Kms from the Branch / service
center location unless specifically approved otherwise. HHF will be positioned as a convenient finance option to
meet the requirements of the borrower to acquire / construct the housing units in these location / areas.
b. Customer Segment - Customer segmentation is the practice of dividing a customer base into groups of individuals
that are similar in specific ways relevant to marketing, such as Income, Age, gender etc.
Customer segmentation allows an organization to target specific groups of customers effectively and allocate
marketing resources to best effect and also to align the organization policy toward the target customer segment.
In case of housing loan / mortgage business customer can be broadly can classified as
• Economically Weaker Section (EWS)
• Lower Income Group (LIG)
• Middle Income Group (MIG)
• Higher Income Group (HIG)

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3. Underwriting Parameter
3.1. Minimum Age
Any individual who owns or proposes to own a property should be the applicant to
the loan.
Applicant and Age Minimum age should be 21 years.
at Loan Origination
If income is not considered, then minimum age should be 18 years at time of loan
origination.

All co- owners of the property should be a co-applicant to the loan.

Minimum age should be 21 years.
Co- Applicant
If income is not considered, then minimum age should be 18 years at time of loan
origination. Minors are not acceptable co-applicants.

3.2. Maximum age at Loan Maturity

Salaried - 60 years or retirement age whichever is earlier
- Applicant
Self Employed - 65 years unless business continuity by Co-applicant validated-
Maximum of 75 years

- Co-applicant
Salaried - 60 years or retirement age whichever is earlier
Self Employed - 65 years or retirement age whichever is earlier
If income is not considered for the co-applicant, then maximum age should
not exceed 80 years at loan maturity.
Number of co-applicants included for income purposes / co-owner of property
should not exceed 4.

3.3. Co-applicants
Applicant Co-Applicant
Common Criteria • All co-owners to the property must be co- applicants.
• All income considered should be co applicants to the loan.
• All loans should have a co-applicant
Spouse to be mandatorily made co-applicant in each case irrespective of the loan
amount and tenor. If applicant is single

Individual, Professional, • Spouse/Parents/Children/Siblings are to be taken as co-applicants wherever

Proprietorship required.

3.4. Minimum Income

Home Loans & Loan Against Property
Minimum Income Min. Individual Salary - Rs.10000/- per month (For Both Cash Salaried and
Norms Account Credited)
Self Employed – Average Cash Profit of Rs.1,80,000/= per annum.
(Cash Profit= Net Profit After Tax+ 100% Depreciation)

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3.5. Income and Ownership Patter

Combination Income can be clubbed
Husband – Wife YES
Parent (Father/Mother) – Son/Sons YES
Parent (Father/Mother) – Daughter (unmarried) YES
Parent (Father/Mother) – Daughter (Married) No
*Brother - Brother (Unmarried) YES
All co-owners of the property and if their income is considered for loan eligibility, they should a Co-
borrower to the loan. Co-borrower’s income can be considered for FOIR
*LTV to be restricted to 50% and property to be registered in the name of both brothers.

3.6. Maximum FOIR Norms

Construction/Purchase/ Improvement/Renovation/ LIH
Income Slab (INR)
Extension/ Composite/LAP Balance Transfer/Refinance
< 25000 40% 40% 50%
25001 to 50000 50% 45% 55%
50001 to 75000 55% 50% 60%
> 75000 60% 50% 60%

3.7. Loan Amount

Product Minimum Loan Amount Maximum Loan Amount
Purchase 5 Lakhs 75 Lakhs
Self-Construction /Balance Transfer 5 Lakhs 50 Lakhs
/Composite
Refinance 5 Lakhs 25 Lakhs
Extension /repairs 5 Lakhs 15 Lakhs
Home Loan to NRI 10 Lakhs 50 Lakhs
Loan Against Property 5 Lakhs 75 Lakhs

3.8. Loan Tenor

Product Minimum Loan Tenor Maximum Loan Tenor
Self-Construction / Home Purchase - 1 Year 25 Years
New/Re-sale / Composite Loan
Refinance / Balance Transfer Plus Top-up 1 Year 20 Years
Home Improvement loan / Home Extension 1 Year 10 Years
Home Loan to NRI 1 Year 15 Years
10 Years - Assessed Income
Loan Against Property 1 Year
15 Years - Declared Income

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3.9. Computation of LTV

A Value as per Registered sale deed / Draft sale deed
B Value as per Valuation Report
C Lower of A OR B
D Loan availed
E LTV = D/C (For LTV allowed for various product variants as defined in the policy).

a. LTV Ratios
Product Maximum LTV
Purchase 90% up to 30 Lakhs
80% above 30 Lakhs
Self-Construction/Balance Transfer/Top up 80%
Composite /Refinance/ Extension/repairs 60%
Loan Against Property 50%

4.1. Policy Parameters

Residence Stability Should be staying in the same city / town for a minimum of 1 year.
Categories of Customers employed with
Employment a) State/ Central Government,
b) Govt. Companies (PSU’s) and
c) Private companies
d) Partnership/Proprietorship Firms
where Salary is credited to the Bank account or paid through Cheque
e) Cash salaried of Rs.25000 and more
Restricted Profile a) Temporary Job in Nature
b) Daily Wages
c) Contract Employees
Categories Of Customers into business including
Self Employed a) Manufacturing
b) Trading & Retail Shopkeepers
c) Servicing
Caution Profile/Negative Profile is provided separately below.

Job/Business Salaried – Minimum 2 years of valid work experience. Previous employment details should be
Stability obtained and verified if the current employer is < 6 months.
Self Employed – 3 yrs in same business. Previous business details should be obtained and
verified if the current business is < 12 months.
Bank Statements Bank statements should be collected for all applicant’s and co-applicants for the last 6 months.
Salary Credit should be reflecting in the bank statements and any loan is operative then the
repayment of the same should also be reflected.
For Self Employed customers, Savings, Current or OD A/c statements should be obtained for
last 12 months and this account should be the main operative accounts.
ABB to be calculated from primary account and Repayment to be from the same account
where ABB has been derived
Fixed Obligations - Regular Debits of EMI to be considered for FOIR if balance tenor of loan is > 12 months and
needs to be deducted from eligibility.
- Pending EMI with < 12 months of balance tenor need not be considered as Fixed
Obligations.

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LAP LTV Norms - For Self-Occupied and Partly Let- out properties.
- For fully Let-out properties 10% LTV shall be reduced from the above.
- Vacant Properties are not acceptable as collaterals

4.2. Bureau Check

Bureau Score is Mandatory for Applicant & All Co-applicants Bureau Score Interpretation
I. Good score- It ranges from 700 & above. It denotes good repayment habit.
II. Average score – It ranges from 500 to 700. It denotes satisfactory repayment habit with few bounces &
subsequent clearances.
III. Poor score – It ranges from 499 & below. It denotes bad repayment habit.
IV. Positive Results is Mandatory.
Interpretation of CIBIL Report:
a) 000 - Payment is on time and no late payment.
b) XXX - Implies that information has not been reported by the lender to Bureau
c) STD or 025 - Payment cleared within a period of 90 days and implies a delay in payment
d) SUB – Payments made after 90 days
e) DBT- The account has remained as NPA for > 12 months
f) Settled – Lender agreed to accept an amount that is less than the outstanding
g) Written Off – When Borrower is unable to make payments against the outstanding loan amount for more than
180 days

5.1. Login Checklist

o Application form duly filled in along Processing fee cheque. (From Salary a/c / main operating Business a/c on
which PDCs will be drawn.
o One passport size photograph of the applicant/co-applicants/guarantor in addition to the photograph affixed to
the application form and signed across.
List of Acceptable KYC
o Aadhaar Card
o Valid Passport (Mandatory for NRI)
o PAN Card
o Photo Driving License
o Photo Credit Card of a Scheduled Commercial Bank/
o Photo ID Card of Professional Councils, Government/PSU
o Banker’s Verification
o Photo Ration Card
o Photo Election ID Card.

Signature Proof:
o Valid Passport
o PAN Card
o Photo Driving License
o Bankers verification
Proof of Residential Address:
o Aadhaar Card
o Passport
o Voter’s ID Card
o Driving License
o Ration Card
o Telephone Bill
o Gas Bill (Only HP or Indane)
o Power/Electricity Bill
o Notarized Rental Agreement
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o Insurance Premium Receipt.

Proof of Date of Birth
o Birth Certificate
o Passport
o PAN Card
o Driving License
o School leaving certificate
o Insurance policy schedule.
Bank statement for the last 6 months, which is not older than 28 days from the date of login. At least 3 Salary credits to
be evidenced in the Bank Statement.

5.2. Pre-Disbursal Documents

• All co-borrowers sign on all pages of the Sanction Letter.
• Borrower submits copies of sanctioned plans and drawings of the plot and building to the bank under the seal
and signature of the competent authority.
• Legal and Technical Reports have been obtained and are found satisfactory and duly verified by Credit.
• Borrower pays in his own contribution as stipulated with a validation with the total cost of the property.
• Duly completed and signed Home Loan Agreement along with Schedules and Annexures
• Obtaining ECS mandate as per norms and / requisite number of PDCs. 1stmonth PEMI Interest should be
calculated and obtained upfront during disbursement.
• Creation of security i.e., mortgage by deposit of title deeds in case of self-construction on own plot / tripartite
agreement in case of builder properties under construction.
• Other pre-disbursement terms and conditions stipulated in the final sanction letter have been complied with.
• Borrower/(s) shall have fully complied with PDDs / additional documents required by Credit as a PDD to earlier
disbursements.

6. Income Calculation Guidelines

1) Gross Income * IIR as per Grid
2) Less: Fixed Obligation
3) Amount available to Service EMI
4) Divide (3) by EMI per lac
5) Loan Eligibility = (3 / 4) in lacs

6.1. Eligibility calculation basis income

a. Salaried Customers
Gross Salary as per pay slip of last 3 months and 6 months bank statement where salary is credited. Average
continuous 3 months Incentives/Overtime Allowance/Any other allowance shall be considered up to 75%
b. Cash Salaried
Customers employed with Private companies where Salary is paid through Cash on a Monthly basis. Daily/Weekly
salaried customers shall not be eligible. Minimum 2 years of valid work experience. Previous employment details
should be obtained and verified if the current employer is < 6 months.
Maximum Cash Salary per application should not exceed Rs.25000/- per month.
c. Self Employed Customers
The eligibility will be derived basis current year financials. However, the current year income will be normalized
at 50%CAGR of last 2 years.
Self Employed Assessed
Credit assessment of customer is based on evaluation of business nature (Daily cash collections, Banking
transactions, Repayment Track record, margins in the line of business, net worth created etc.). Based on these
parameters, Customer’s income and repayment capacity are determined.

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SO/Cluster Manager/Credit Officer should do a detailed assessment of

a) Business Nature
b) Daily to Monthly to Annual Sales
c) Income Details (Gross/Income)
d) Seasonality in Business if any
e) Margin details
f) Debtors/ Creditor details
g) Previous experience or business if any
h) Inventory
Other business commitments should also be enquired and documented.
Customer’s and co-applicant’s other business income like Dairy Business, Agriculture, Rent, and Tuition Income details
should also be captured in PD Report.
Applicant’s and Co-applicant’s business should be assessed separately and income should be calculated accordingly.

6.2. Other Income which can be added for loan amount calculation
1. Rental Income
50% of rental income can be considered for eligibility subject to
a) Proof of Ownership of rented property
b) Verification of rental paid by tenant –by appropriate resource
100% of rental income can be considered for eligibility subject to
a) Rental income reflected in last 2 years IT Returns
b) Rent is credited in Bank statement of the customer.

2. Agriculture Income
50%of income can be considered subject to ownership of Agriculture land is obtained and Certificate of Agriculture
income from Village Officer. For LIH product- 100% of validated income (Mandi receipts/Bank credit) can be
considered

3. Tuition Income/Other Income

50%of income can be considered subject to validation of the same

4. Pension Income
Co-applicant’s 50% of Pension income should be considered only from retired State/Central Govt. employees/PSU for
eligibility if the same is the only income with a maximum age of pensioner not exceeding 75 years at loan maturity.
For LIH product- 100% of validated income (Bank credit) can be considered

6.3. Banking Product in Home Loans

Under this method, the customers’ deposit into his bank accounts for last 12 months are considered. The bank
statement of the customer is an indicator of his ability and intention to pay, inflows, outflows, average bank balance
which is a reflection of the customer’s turnover, cash flows. We will also take 1-year financial statements from the
customers along with business assessment.
Maximum Loan Amount Rs.50 lacs
Loan Amount up to Rs.25 lacs - Average Banking Balance should be equivalent to 2 times of EMI
Loan Amount Rs.25 - Rs.50 lacs - Average Banking Balance should be equivalent to 3 times of EMI

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7. Home Loans to Non-Resident Indians (NRI’s)

[Link]. Criteria Description
1. NRI - Definition An Indian citizen who holds a valid document like Indian passport and who
stays abroad for employment or for carrying on business or vocation outside
India or stays abroad under circumstances indicating an intention for an
uncertain duration of stay is an NRI.
2. Target Countries • USA, Canada, UK, Germany, France, Italy, Spain, Netherlands, Belgium
• Middle East – UAE (Dubai, Sharjah, Abu Dhabi), Saudi Arabia, Bahrain,
Qatar (Doha, Muscat, Sultanate of Oman), Kuwait.
• Asian countries – Singapore, Malaysia, Hong Kong, Japan.
• Australia, New Zealand.
Applicants who are working in negative countries cannot be considered. List
of Negative countries
3. Target Segment Non-Resident employed (salaried) Indians. No self-employed NRIs are allowed.
• Skilled & Semiskilled – Software professionals, Engineers, other
professionals, Carpenters, Electricians, plumbers, mechanics, etc.
If the applicant is on contractual basis, at least one contract renewal for full
year with the same employer to be completed.
• Unskilled categories are not allowed like – laborers, maids, servants,
gardeners, helpers, cleaners, etc. are not allowed.
4. Eligibility Criteria 1. Applicant should have NRI status.
2. Minimum age should be 21years.
3. Applicant should be working abroad with Indian passport and valid visa.
4. Applicant is Person of Indian origin (PIO)
5. Income should be in foreign currency and repatriable to India.
6. Minimum one year of completed overseas service.
7. Minority Profiles to be avoided
5. Income Norms Minimum Net Salary of INR 80,000/- per month should be observed in the bank
account.
Average of last 6 months currency rate should be obtained for conversion for
any approved country.
No Joint income of any borrower shall be considered for eligibility.
6. Loan Amount Minimum Loan Amount: Rs. 10 lacs
Maximum Loan Amount: Rs. 50 lacs

7. Tenor Maximum tenor of 15 years

8. Product All Home Loan Products except Composite Loan

LAP not allowed.
Minimum and Maximum loan amount is as per the product variant mentioned.
9. Co-applicant/ Co-Applicant is must in all NRI cases and he/she should be a blood relative of
Guarantor the applicant and must be an Indian resident.

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[Link]. Criteria Description

10. KYC Requirements • Copy of Valid Passport & valid visa for ID, Age, Address of residence and
signature proof.
• KYC Documents of POA and Guarantor
• Salary pay slip for last 3 months/Salary certificate (If variable components
like OT and incentives are reflected then six-month salary pay slips are
required)
• Work permit, Labor Card or any other employment proof issued by
concerned govt.
/Employer.
• A copy of the appointment letter and contract from the company
employing the applicant.
• Copy of all overseas bank statements for last 6 months if any.
• Copy of NRE/NRO bank statements of last 6 months.
• Passport copy with valid entry visa. (Applicant’s passport should not have
‘No Entry’ stamp on the passport prohibiting NRI applicant entering a
country).
• Power of Attorney (POA)
• Tax Return Statement
• KYC documents of POA
11. Verifications • Residence Verification of Indian residence address.
• Employment Verification through mail from reporting authority of the
Applicant. Mail verification is mandatory for all the cases and tele
verification of employer has to be done for loans more than Rs. 10.00 lacs.
The verification mail id has to be company mail id only.
• CIBIL of both the applicant as well as the Co-applicant.
• Bank Verification of NRE/NRO A/c
• Guarantor’s Residence & Employment Verification if any.
• Reference Verification.
• Credit Report from country of current employment, if available.
12. FOIR & LTV Norms Max. FOIR shall not exceed 50% & LTV Max.70%
Eligibility will be on Net salary credited only and not on Gross
13. Processing Fee and Fees or any Charges
Repayment Norms • Fees to be by way of inward remittances through normal banking channel
or by NRE/NRO A/c only or through POA.
• It is always preferred to take cheque from the applicant’s NRE/NRO
account only.
Repayment mode
SPDCs or NACH to be drawn on Non-Resident (External NRE) Account and /or
Non-Resident (Ordinary) [NRO] account in India only.

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[Link]. Criteria Description

14. POA • The POA is important because, since the borrower is not based in India;
HHF would need a 'representative' 'in lieu of' the NRI to deal with and if
needed.
• The POA holder has to be a resident Indian only and residence verification
has to be done and positive report has to be ensured.
• If the POA is executed in India – POA has to be executed on a non-judicial
stamp paper (as applicable in respective states), executants should sign
each page of POA and where ever the blanks are filled – in. The POA should
possess the photographs of the executants with passport number. The
signature of the executants should be registered mandatorily.
• If the POA is executed outside India – The POA has to be executed on a
stamp paper / plain paper as the case may be as applicable in the country in
which the POA is executed. The signature of the executants (principle)
should be attested by any authorized official of the Indian Embassy /
consulate in the country where the executants reside. Alternatively, the
signature of the executants can be attested by Notary Public of that country
(Only for USA) and adjudicated (to be stamped in India for the requisite
value as applicable to respective states) in India within 2 months of receipt
of POA in India. The attorney’s signature should be verified in India by
Notary Public.
15. Payment of Own • The own contribution has to be from direct remittances from abroad
contribution through normal banking channels or from NRE / NRO a/c only. Statement of
NRE / NRO account showing entries where the payments are made to the
builder / vendor as proof of own contribution has to be provided and cross
checked with the receipts given by the builder /vendor.
• Own contribution payment from normal saving a/c in India or in cash is not
allowed.

8. Home Loan Takeover and Enhancements

Minimum Vintage Minimum vintage of the loan being taken over:12 Months and should not be at PEMI stage
Loan Amount Home Loan Balance Transfer and Top Up
Any top up for a Balance transfer shall be approved for Self-Construction cases where there is
additional construction.
Any extensions or improvement should be validated with proper cost estimation during credit
approval. Disbursement shall be subject to own contribution of customer is completed.
No plot loan takeovers are allowed unless customer wants to commence construction
immediately.
Top up
Top Up shall be restricted based on mentioned conditions:
Loan amount 100% of Sanctioned loan amount or outstanding loan amount

Disbursement Enhancement / Additional Loans for takeover cases should be disbursed subject to:
Norms a) Receipt of Original Property Documents and NOC/Closure letter from existing
bank/HFC/NBFC
b) Cancellation of Registered Mortgage/MODT/NOI if any has been executed.

BT Additional Property to be a fully built-up property or occupied with availability of basic amenities which
terms and are validated through independent proof
conditions

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Seller BT Disbursement has to be done at the time of registration only. Two cheques have to be
prepared:
1) In the name of the current lending institution
2) In the name of the seller
Both the cheques have to be mentioned in the sale deed. On registration, cheque favored to
the current lending institution to be handed over to the lending FI through HHF Official.
Acknowledgement from the current financial institution to be obtained.
Second cheque shall be released to the vendor only after receipt of the original documents
from current lending institution
Under Seller BT, following documents to be collected from vendor of the property
a) List of documents at the current lending institution
b) Outstanding Letter at the current lending institution
c) Authority letter/POA to be received from the vendor to collect property related
documents directly from the current lending institution

BT Additional Property to be a fully built-up property or under construction of not later than 12 months.
terms and
conditions

9. Credit Scoring
- Credit scoring has to be performed for all Home Loan and LAP new customers and during enhancement for
existing customers. Credit Scoring helps to quickly and efficiently obtain fact-based and accurate predictions of
the credit risk of individual applicants or customers.
- HHF adopts an exhaustive Credit Scoring Model to assess the risks of the customers. Our Credit Scoring Is derived
based on Customer Profile, Cash Flows to service the EMI, Collateral details and Bureau Scoring.

[Link] Score Definition Score Range

1 Superior 70 & above
2 Very good 60 - 69
3 Good 50 - 59
4 Medium 40 - 49
5 To be rejected Less than 40

10. Other Product Norms

The loan will be secured by first equitable mortgage by deposit of title
deeds of the property and in whichever State it is made mandatory,
Memorandum of Deposit of Title Deeds will be registered. Wherever a
Security Offered “registered mortgage “is made mandatory in the legal opinion on some
specific legal grounds the same will be complied with. Additional /
collateral security will be taken if so, stipulated by the Sanctioning
Authority.

Repayment Options EMI on a monthly reducing balance method

o The sanction stands expired on completion of 90 days from the date
of sanction letter, if a customer does not avail within that time.
Sanction
o Customers approaching for first disbursement after the expiry of the
sanction will be subjected to a fresh credit appraisal.

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• EMI’s will be due by 1st of every month.

Repayment cycle • Penal Interest of 24% p a additional shall be applicable if not paid
within the same month.
• In case of part disbursements, the customer should pay interest in the
EMI / Pre-EMI
form of Pre-EMI till EMI commencement.
• Self-Construction / Composite Loan – to commence within 24 months
Repayment Holiday (Pre-EMI period) • For Extension/Improvement Loan - to be completed within 12 months
i.e., max. period allowed for from the date of first disbursement
completion of construction • Builder Projects under construction - to be completed within 24
months
The loan EMI’s will be collected by way of PDC / ECS/ACH mode. In case of
Repayment Mode/Collection
PDC a minimum of 24 PDC’s would be collected at the time of
disbursement and subsequently replenished at regular intervals. Prompt
and continuous collection of the receivables on a monthly basis with close
follow up mechanism will be put in place. Targets will be set and
monitored on a daily basis for prompt results.
• NACH instruction to be filled by the customer in the mandate form in
standard format.
• For Partnership Firm’s, NACH format should be on Firm Head
• For Salaried customer, NACH to be taken from Salary Account & for
self-employed customer, NACH should be from the main business
account
• NACH to cover the entire tenor of loan
• 4 undated PDC’s for EMI amount to be collected from the customer at
the time of loan booking.
• 1 Undated Principal Value Check (PV) to be collected from the
customer for the entire loan amount
• NACH instructions to be entertained only from banks approved by
Credit Policy from time to time.
• Minimum 5 PDC’s to be collected from the customer.

Title Whom is the When is the

Disbursement made Disbursement made

Self-Construction/ Borrower Basis the construction

Refinance linkage and as per
progress report certified
by the Empaneled
valuers
Purchase of Flat To the Builder Basis the construction
Beneficiaries/Payee (New) linkage and as per
progress report certified
by the Empaneled
valuers
Purchase of ready To the Builder / Sellers At the time of the
Built-up property/ plot/ Registration of the sale
Resale deed.
Extension / To the Borrower Basis the construction
Improvement linkage and as per
progress report certified
by the Empaneled
valuers

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13.1. Negative Profiles

1) Practicing Lawyers – (Practicing in Taxation, Labor law can be considered)
2) Daily Wage Laborers / Mathadi Workers / Casual Job /Non-permanent employment
3) Politician or person affiliated to political parties
4) Real Estate Agent, Builders, and Developers
5) Plantation / Time share Company
6) Multi-level Marketing
7) Lottery Agencies
8) Standalone Bar owners / Wine shop owners
9) Owner & Employees of DSA / Verification / Collection / Repossession Agencies
10) Anti-Social Elements
If applicant/ co-applicant is from regular profile then income clubbing of negative profile can be done to the extent
of 75% of regular profile. No deviation is allowed in negative profile applicant.

13.2. Caution Profile

Customer Profile Mandatory Conditions
• Employees of BPO • Loan limited to Rs.25 lakhs of Home loan
• Waste Scrap merchants • Bureau score above 700
• Auto & Commercial vehicle drivers • LTV limited to 75% (including insurance)
• Transporters • WAS score of Very Good and Superior
• Beauty Parlor • End use- Purchase/Self-Construction/Balance
• Tour operator Transfer

14. Deviation and Delegation

Level Role Loan Amount 15-50 lacs 50-75 lacs 0.75-25 crs >25 crs
Up to Rs.15 lacs
L1 Cluster Manager Recommend Recommend Recommend NA NA
L2 Credit Manager Reviewer Reviewer Reviewer NA NA
L3 ACM Approver Reviewer Reviewer NA NA
L4 RCM NA Approver Reviewer NA NA
L5 NCM/ZCM NA NA Approver Recommend NA
L6 COO NA NA NA Reviewer Recommend
L7 Credit Committee NA NA NA Approver Reviewer
L8 Board NA NA NA NA Approver

15. Credit and Process Deviation Approval Matrix

Regional Head - Credit Head
[Link]. Deviation COO
Credit
1 5% additional IIR/FOIR Yes
2 Repayment Track Record <=6 months for BT Cases Yes Yes
3 Enhanced LTV for HL/LAP Cases - 5% Yes
4 Enhanced LTV for HL/LAP Cases - >5-10% Yes

Any other deviations have to be approved by COO/MD

Note: This policy will not hold good for Co-lending products

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16. Annexures:
Annexure 1 – Customer Appraisal Process
Annexure 2 – Credit Files and Disbursement Document
Annexure 3 – Negative Country List for NRI HL
Annexure 4 – General Power of Attorney
Annexure 5 – Indemnity Cum Declaration Cum Undertaking
Annexure 6 – Tripartite Agreement

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Annexure 1
Customer Appraisal Process
Are Sales Officer/ Cluster / Regional Heads doing Sales?
- Whether we can sell money?
- Whether Credit is a Special Skill?
Sales, in simple terms is complete only when consideration is fully received.
In a Finance Company, if we consider any one doing sales, his role is complete only when the last instalment is paid.
Hence in a finance business an executive who claims to be a Sales Person cannot stay away from credit, i. e evaluating
whether customer’s cashflow would be sustained / remain interrupted till the contract period, collection i. e
understanding reasons for disruption in Customers’ cashflow.
We need to understand:
(a) Customer segment and profile of customers who would be finding our offerings acceptable when compared
with other lenders in the market.
(b) Risks associated with such customer segment.
Target customers would be those who are self-employed, small business men and employees of small and medium
enterprises. Generally, they would be having cashflows just to meet their needs. To be a diligent lender it is important
to understand their ability to sustain cash flows over a loan period of 15 years.
The difference between a business loan and a home loan is that while business loan is short term and is based on future
earning potential the home loan is long term and given based on existing validated cash flows. To this extent
susceptibility of cash flows affecting repayment should be NIL and hence margin in this business is also low compared to
other forms of lending. Hence assessing his present earnings becomes the fulcrum on which success of our lending rests.
Generally, income assessment for a person having good banking habits is easy but the customer segment we cater to
would prefer investing their surplus in their business than keeping them in the bank. In this scenario assessment of risk
associated with cash flow can be mitigated only with diligent enquiry and validation process. Individual skill and integrity
are paramount. In order to guide executives to perform this important task an illustrative discussion-based evaluation
format is given in this note. It is imperative that all executives involved in customer selection give descriptive details on
parameters suggested here so that any reader gets comprehensive understanding of customer profile.
Since this segment will not get funds or cheaper funds for either meeting business needs or family needs their needs
will drive them to get more loans through top up or raising loans on free property, understanding endure of funds in
such cases become very important.
Wherever a customer is intending to purchase or construct a house it is necessary to understand rent he has been
paying. If the EMI of Loan sought is higher than rent paid validation of cash flow should be focused in understanding
how the extra earnings were invested in the past.
In this background all participants in whatever designations they have are performing a single task (i.e.) evaluating a
customers’ ability to service the loan. This guidance note aims to provide clarity of roles every executive in the system
to perform.
Objective: Credit decisions are taken on information collected as per scoring methodology and validated by four pairs
of eyes before payment is authorized to minimize risks in business.
Methodology: In order to have clarity in credit appraisal process, our company has a rating sheet which defines the
credit appraisal process to be followed. This approach helps in faster decision making to create an impact in the
customer’s minds about speedy action by the company and at the same time having a structured approach to reassure
the risks associated in the business of lending.
Our ERP defines the scoring methodologies to be adhered / followed and the risk rating which forms the basis for giving
in principle sanction.

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It is expected that all participants in the credit appraisal process follow the same methodology of risk rating to confirm
the appropriateness of credit scores given for the customer proposal.

[Link]. Activity – Maker Responsibility

1 It is the responsibility of the executive collecting the data supporting the proposal in the Sales Officer
TAB with copies of supporting documents.
2 Preparing the customer appraisal file and forwarding the same to the cluster Manager Sales Officer
[Link]. Activity – CHECKER Responsibility
a Verification of documents submitted to sales officer and confirming that scanned images Cluster Credit
in the ERP conforms to the copies of documents physically evaluated in the file
b Meeting the customer and validating information given by sales officer in the PDD Cluster Credit
c Amending the proposal wherever necessary to confirm facts / data observed during Cluster Credit
personal visit by Cluster Head.
d Confirming that file have been prepared as per the checklist in the same seriatim as Cluster Credit
provided in checklist apart from confirming that documents in the file is the replica of
data scanned and uploaded in the ERP.
e Legal and Technical Appraisal has been uploaded in the ERP and the signed copies of Cluster Credit
the Legal / technical is available in the file
Activity – REVIEWER Responsibility
i All Business files should be routed through the Regional Managers RCM
ii Regional Manager to re-evaluate the customer appraisal based on documents uploaded RCM
and confirm that proposal process has been diligently followed and the rating given
reflects scores given in the score card
iii Regional Manager to confirm that valuation given in the ERP is as per the technical RCM
valuation uploaded in the ERP
iv Regional manager should certify in ERP that he has verified the documents in the file RCM
with respect to the scanned images in the fie and the data is complete
All files reviewed by the Maker/ Checker and Reviewer as per the process should be
sent to the Regional Credit.
RCM
Their responsibility is to give a confirmation that the above process has been complied
with and legal, technical appraisal conforms to the guidelines given in the company
policy and certify that payment can be made

Guidelines for Appraisal asset Risk Information

Personal PDD should cover descriptively type of loan, location in which the property is situated, land value and plan
approval.
Income and Cash Flow - (As per annexure)
Many of the target customers will not have a valid credit history. Repayment of loan is dependent on free cash earnings
available in repaying the loan. Arriving at the serviceability of the loan is of critical importance. Care to be taken to
assure whether his earnings can sustain at these levels over the loan tenure. Some typical questions to be asked and
how the discussions with the customer should be done to assess the cash flows are given below:

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Criteria Guidance for discussion

As we know, house hold expenses are linked to number of persons
dependent on the earning member.
Total number of family members Here you have to fill number of members that are living together with
in the house the proposed borrower. Say—5 or 6
Borrower, his wife, borrower’s father, borrower’s mother, and
borrower’s 2 children.

While visiting borrower’s house, see what type and standard of

consumer durables are used there in his house. Like TV (old model, LCD,
LED, latest FHD, 4k) refrigerator, washing machine, gas connection, air
conditioner, sitting facility like chairs or sofa, high end sofa sets, etc. As
you also look around, you can see upkeep of house is in what condition,
how is the family members clothing style, their language assent.
Is this his/parental own house or rented, if owned, it’s in whose name,
then to ask why he wants to go for one more house, or if its rented
one—what’s the monthly rentals, and since how many years they stay
Standard of Living-- & there. Here again if rented house is too small, say 150 sq feet, and he is
House details-- looking for 800 sq feet house, then question need to be asked as to why
he wants to go for such big house.
When you look at all above, you can easily make out in your mind, what
kind of a customer profile is this. Is he an average person with a below
normal life (fair), just coming up- where you see promising upcoming
borrower and enthusiastic (better), or good standard of living-where you
see life style is better, tiled house with latest consumer durables,
neatness and all - (Good)
Your opinion on above physical visit and discussion and taking call on it
will impact your recommendation.

Need to assess borrowers / co borrowers existing property if any, gets

comfort on credit decision.
Hence, the value of the property owned should be assessed prudently
and conservatively, so as to make a realistic estimate of value of the
property. Should also see property papers and visit and see the property
What is the value of property along with borrower.
owned by the Borrower? If borrower has an own house and stays at rented place, question should
arise and be asked, why not staying there, and also if rented out then
what rent do, they get.
If property so claimed is jointly owned or it’s an ancestral property then
this can have many claimers, in such a case we should not give much
consideration for the same in borrowers assessment

Discuss with customer about his past loans, existing loans, current
monthly Emi out go, and balance future tenure payable.
This can be personal loans, consumer durable loans, 2-wheeler loans.
etc., and who are this financiers from where it’s availed.
Existing loan details that are live
This will help you know, borrower’s commitment culture, and his monthly
and earlier loan details
compulsory outgo on loans.
Reference from his existing financiers, should be obtained and the same
has to be validated with the Statement of Account obtained, to confirm
the repayment track record of the borrower.

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Criteria Guidance for discussion

Here you will fill names, and their age of family members.
You will also additionally fill school name and monthly school fees of
Family details borrower’s children. As we get details, we also look at each member
expenses like clothing for members, for children’s it will be school fees,
uniform, books, tuition fees, and regular school conveyance expenses.
Talk to borrower’s neighbor. You need to know, to whom you spoke —
his name and wherever possible, get his contact number.
We need to give comfort to him about whatever information he shares is
Neighborhood check and
going to be confidential.
his opinion
You will try to speak to him to know about the borrower’s background,
how long he leaves here, his character, and anything else that he may
share of him you can write in assessment form.
Borrowers who are in unorganized sector, and/or not having excellent
financials to show as documentation evidence, but they do earn a fairly
good income, and are in business may be for number of years, but not
What type profile of borrowers keeping their financials and accounting in proper presentable form. This
are likely to come to us is where we need to extract maximum available evidence of their
business details and income generation ability for a period and then
need to conclude on their monthly gross income.

Need for the borrower has to be assessed based on his past experience
and stability of what business that he is doing currently and since how
many years and what was his earlier activity prior to the current one.
For persons in business, we can get enough supporting evidence of his
business as well as his earnings.
Like, borrower’s audited financials of last 3 years collect filed IT returns,
bank statement of at least last 12 months.
If above type documents are not submittable, then you can get his
purchase bills of last 6 to 10 months, his sales bills of last 6 to 10 months
and some order copies that he supplies.
Apart from above you need to collect shop rental agreement copy, shop
registration copy, TIN registration copy. to know of borrower’s claim of
How to assess self-employed / his business.
small entrepreneur type customer Visit borrowers shop and see for yourself, what activity happens there.
for a loan. Income workings and How many staff are employed, what amount of approximate stock is
arriving at correct surplus available stored in his shop.
for servicing EMI’s Based on above and seeing his shop and style of living and your
discussion with borrower, you can guess what amount of money he
would be earning on an average a month.
Such borrowers also invest in small pieces of lands in nearby areas. Get
such details.
Add additional income if any, and seek for proof for that.
Then start on his outgo out of his gross income. Discuss about his various
type of expenses for his office as well for his house also.

You should also discuss about his current loans and monthly
commitment towards that.
Ensure that this data is genuine and realistic, for you to arrive at his
surplus income.

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Criteria Guidance for discussion

Income of additional member of the same family say wife or father can
be considered here and that member can be taken as co borrower.
The calculation of surplus can be understood well only when sales officer
is discussing with customer about his life style of his past, present,
current liabilities and the likely additional liabilities that he expects in the
future.
Hence proper assessment of genuine free cash only will help the
borrower to pay his regular monthly EMI commitment comfortably.
Borrower as an entrepreneur may have some additional income, like
income from agriculture, or rental income or salary income of his spouse
or children’s / parents. His so claimed additional income should be
supported by some evidence paper, or bank statement entries.
Is there any other source
If additional income from a family member is clubbed, ensure to take
of income?
him as additional co borrower. If any agricultural income is claimed, then
we should check for mundy supply bill copies, could check with mundy
broker as to how often proposed borrower sells his produce in a year,
and to check where is this land and it’s in whose name.
It is important to check the source of upfront money that the
entrepreneur makes up.
It should normally be met from his internal accruals like bank deposits,
sale of family jewels, sale of piece of plot land or Agri land, but not out of
any borrowings, or by not paying his creditors.
Source of own contribution
In case this is met through borrowings from his relatives or friends, we
need to be cautious as the intention of the borrower would be to repay
this first and there would be strain on his cash flows during the initial
months. This can lead to borrower becoming in default in the initial
stages itself.
The person giving reference about the borrower should be of good
standing in the society and he should have known the borrower for at
least few years to give a clear opinion on the borrower about his
integrity. He should not be a recent acquaintance to the borrower as his
opinion would not have any value.
Reference Checks
Can get opinion of borrower also from a person who is in similar
business in that area.
A good reference and opinion about borrower from other third party is
most important for a financing as the relationship of borrower lender
will depend on his regular and prompt commitment.
For small entrepreneurs/self-employed, market check will be to visit
borrower’s shop and its nearby areas. Should also check how long
borrower has been in this business and place/area here. Can speak to his
Market Checks nearby shops and ask about their opinion of the borrower in an objective
manner and this should be valued more than the reference checks as
above.
Taking co-borrower with a reasonably good back ground and a decent
income helps.
For self-employed/entrepreneurs’, when spouse or Parents are
Co-borrower Strength
considered as co-borrower, that strengthens the proposal. While on
default, borrower would not like their spouse being dragged to court,
and that little fear makes him work to pay regularly

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Criteria Guidance for discussion

This should be based on the Loan Amount against the actual property
cost (property cost / amount of funding sought).
Risk consideration areas to be considered are location risk, Type of Loan,
loan to value and property plan approvals, quality of construction, and
age of the property.
Asset Risk Information Look at these areas in detail, get your judgement right or when in doubt
not to hesitate in talking to right persons for help, before assigning a
rating.
Technical team to see—whether property is not near water logging
zone, low lying area, negative area, or coming under future expansion
plan of state for takeover.

Here borrower’s ability to pay has to be evaluated properly.

How long the borrower is in business, what is his target audience and
what gross earnings does he make. Here must note if borrower is in a
seasonal business type of trading, then how is he going to make regular
payments. Does he have any fall back income during slack season?
Income and cash flow workings
Do a thorough exercise of borrower’s net business income, and deduct
his regular monthly expenditure to arrive at available surplus for
servicing his EMI’s. Borrowers banking culture, average balance and his
other income if any has to be seen with a micro glass and give rating
accordingly.

Getting Borrowers family background, his qualification, his past and also
about his aspiration plays a big part in right evaluation.
Business history of the past and present including stability of his career
Customer Profile at various point also helps in evaluation
Personal discussion with borrower plays a big role in understanding his
intent, temperament and borrower taking ownership in taking
responsibility of honoring commitment, and give rating accordingly.

Borrower or co borrower having any additional property other than that

is being financed for, gives credit comfort. Assessing the source of
borrower’s upfront payment is most important. if that is from his own
Collateral / property details savings or sale of jewels is better, but if that portion of contribution is
also through hand loan, the chances of borrower getting in to default in
the earlier stages itself will be higher. To check honestly and give rating
accordingly.

Wherever income from property is assumed, PDD should give details of

Income from property properties rented out with a photograph of the property as well as
description of the type of construction and the approximate built-up
area with the rental values independently validated with neighborhood
check.

While arriving at the bank balances, care should be taken to eliminate

abnormal credits. Abnormal credits may be a deliberate attempt by the
Banking borrower to get higher weighted average on bank balances. Calculation
of average bank balance should always be done after removing the
abnormal credits in PDD Customer profile.

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Field Verification
The following documents will form a part of the Field Verification Process
Borrowers – House/business place photograph along with Borrower and HHF verifier to be seen in the photograph

Borrowers – house / business place area -- street view photos – to cover full view of street and surroundings

Borrowers place of stay — route map from our nearest location, including marking important land mark and clear
distance from our office

Borrower’s stay place distance from our office km Borrower’s business place distance from our office
km
Borrower’s proposed loan property place distance from our office km Name of Employee_ _ _ _ _ _ _ _ _ _ _
Employee ID

Signature Date of inspection

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Annexure 2
Credit Files and Disbursement Document

Disbursement Checklist:

Zone LAN No Sanction Amount

Region Applicant Name Sanction Date
Cluster Co-Applicant [1] Disbursed Amount
CCM Name Co-Applicant [2] Disbursed Date
Sales Officer Product Purpose of Loan
Property
Address:-

Submitted
Sr. Provided( OTC Original / CBH CCM RCM/
Particulars Parameters Disbursement check List
No Y/N) (Y) Photocopy/ Check Check RMC
Draft

Operations Documents ✓ ✓ ✓

Application Photo & Self- Application form along with System

1
Form Attested signature & Photo of all borrowers Copy

Applicant / Co-Applicant / Guarantor

Photo
ID Proof along with signature all borrowers &
copy
KYC OSV Signed by SO
2
Documents Applicant / Co-Applicant / Guarantor
Photo
Address Proof along with signature all borrowers &
copy
OSV Signed by SO
Latest 3 Month Salary Slip/Salary
Salaried Photo
Certificate/Offer Letter/Appointment
(Applicant)* copy
Letter/ Form 16
Latest 3 Month Salary Slip/Salary
Salaried (Co- Photo
Income Certificate/Offer Letter/Appointment
Applicant) * copy
Proof- Self Letter/ Form 16
Attested by Self-Employed
3 All Latest 2 Year ITR returns/Bills Photocopy
(Applicant)*
Borrowers &
OSV Signed Self-Employed
Latest 2 Year ITR returns/Bills Photocopy
by SO (Co-Applicant) *
Business
Ownership Proof
Applicant/Co-applicant Photocopy
(wherever
available) *

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Submitted
Sr. Provided( OTC Original / CBH CCM RCM/
Particulars Parameters Disbursement check List
No Y/N) (Y) Photocopy/ Check Check RMC
Draft

Banking- Self 6 Months Bank Statement (All

Attested by Salaried * Borrowers)
Photocopy
All
4
Borrowers & 12 Months Bank Statement (All
OSV Signed Self-Employed * Borrowers)
Photocopy
by SO
Bureau Report
5 Applicant/Co-applicant/Guarantor Original
(CIBIL)
Personal evaluation Sheet / Report
6 PD Report Original
signed by the CCM
Evaluation Sheet ERP Under Report---> Evalution System
7
& WAS Score Sheet or WAS Score ERP Screenshot Copy
Report RCU Report For Applicant & All Co-Applicants Y Original
Loan Closure Loan Closure Proof Verification
Proof Report (if mentioned in sanction Y Original
8 Verification condition)
Builder/Society/
Competent Builder or Society NOC verification Y Original
Authority *
NRI (Mandatory)
HR HR Email confirmation of the
9 & Salaried cases Y Original
Verification Employment
*

Sherlock
10 Sherlock Report Applicant/Co-applicant/Guarantor Yes Original
Report

Internal Report & External Report

Technical System
11 TSR Report where Property Valuation more than
Report Copy
Rs.50 Lacs

System
12 Legal Report LSR Report Internal/Vendor Legal Report
Copy
Deviation or
Sanction Limit NCM/COO Mail Approval Photocopy
Authority Mail
OTC Mail
OTC Mail Approval Photocopy
approval
All Approval Insurance
13 Insurance Approval Photocopy
Mails Approval

ROI Approval ROI Approval Photocopy

RCU Approval RCM- Refer/ NCM- Negative

Photocopy
Mail Approval

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Submitted
Sr. Provided( OTC Original / CBH CCM RCM/
Particulars Parameters Disbursement check List
No Y/N) (Y) Photocopy/ Check Check RMC
Draft

Sanction
Condition NCM/COO Mail Approval Photocopy
Waiver Approval
Sanction Accepted Sanction letter duly signed
14 Sanction Letter Original
Letter By Applicant and Co-Applicants

Allotment Letter from Builder Y Photocopy

Agreement to Sale Y Draft

Reg Receipt, stamp duty Paid
Y Photocopy
Receipt,

Index- ii (wherever applicable) Y Photocopy

Demand Letter Y Photocopy

Own Contribution Receipt (OCR) Y Photocopy

Builder Purchase

Development Agreement Y Photocopy

Tripartite Agreement Y Photocopy

Property
15 Related
Documents Sale Deed Y Photocopy

Title Search Report Y Photocopy

NA order Y Photocopy

Agreement to sale Between Current

Y Draft
borrower and the seller
NOC From the Society (with two
Authorized Signatory Society Y Photocopy
Officials) / Or Issuing Authority
Resale Purchase
Own Contribution Receipt (OCR) Y Photocopy

Seller KYC, RCU and Cancelled

Photocopy
Cheque
Direct Allotment Allotment Letter from Issuing
Y Photocopy
(by gvt) authority

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Submitted
Sr. Provided( OTC Original / CBH CCM RCM/
Particulars Parameters Disbursement check List
No Y/N) (Y) Photocopy/ Check Check RMC
Draft

NOC From Issuing authority Y Photocopy

Own Contribution Receipt (OCR) Y Photocopy

List of Documents Photocopy

IF Seller BT case Balance O/s Letter Photocopy

Loan Closure NOC proof or Receipt Y Photocopy

List of Documents Photocopy

Balance O/s Letter Photocopy

IF BT OR Top-up
Case
Loan Closure NOC proof or Receipt Y Photocopy

End Use Letter (Applicable in LAP,

Photocopy
LAP BT & Top Up)

Approved Plan Copy Photocopy

Completion Certificate/ Occupancy

Photocopy
Certificate
Technical
Documents Commencement Certificate and
Photocopy
(wherever Approved Plan copy
applicable)
TAX Paid Receipt Photocopy

Construction Estimate Mandatory in

Self Construction/Composite Y Photocopy
Loan/Improvement Loan

1. Condional Loan Closure Proof Y Photocopy

Documents as
Sanction
16 per sanction 2. Tenant NOC and KYC Photocopy
Conditions
condition
3. Others Photocopy

Own OCR Clearance Bank Statement

17 OCR Clearance Y Photocopy
Contribution Required

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Submitted
Sr. Provided( OTC Original / CBH CCM RCM/
Particulars Parameters Disbursement check List
No Y/N) (Y) Photocopy/ Check Check RMC
Draft

Cash OCR when It is Mentioned in

Cash OCR Y Photocopy
REGD Sale Agreement/ Approval
For NRI Customer - Power of
NRI Attorney- Registered & Stamp by Y Photocopy
Rs.500/-
Other
18 Additional
Documents
Collateral -
Additional collateral Documents Y Photocopy
wherever
applicable
Insurance Form duly filled & signed
ICICI Original
by borrower
Insurance Insurance Form duly filled & signed
19 TATA AIG Original
Form by borrower
Insurance Form duly filled & signed
GO Digit Original
by borrower
All Cheques should be in the Nmae
of " Hinduja Housing Finance Ltd"
Original
Backside of cheque- LAN NO &
Applicant Name
6 Cheques
1 - Cheque filled of Loan Amount
2 - Cheques filled - Pre-EMI amount
20 PDC & NACH Original
2 - Cheques filled - EMI amount
1 - Cheques for Security EMI
1 SPDC Co-applicant blank cheque Original
For those banks who’s not registered
Manual NACH
as per List provided by HO or Waiver Y Original
Mandate
for E-NACH cases
Loan Facility Loan Agreement duly Franked or Original
21 Documentat Agreement Stamp Papers As per stamp Act
ion KIT with Scheduled state wise (To be notarized)
Demand Original
Revenue Stamp of Rs.1 required
Promissory
with sign of all borrowers
Note
Letter of Original
Sign by all borrowers
Contunity
End Use letter Sign by all borrowers Original
Declaration of Sign by whose declaration Original
Vernacular provided borrower or co-
Language (If borrower or both (To be
applicable) stamped)
Disbursement Request form duly Original
Disbursement
signed By Applicant and Co-
Request Form
Applicants

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Submitted
Sr. Provided( OTC Original / CBH CCM RCM/
Particulars Parameters Disbursement check List
No Y/N) (Y) Photocopy/ Check Check RMC
Draft

Page No- 31 to Original

Sign by all borrowers
45
POA- Power of Sign by all borrowers (To be Original
Attorney stamped & Notarized)
Affidavit cum Original
Signed by all borrowers except
Undertaking
LAP & Top Up cases (To be
for Under
stamped & Notarized)
Construction
Indenture of Original
If Applicable signed by Guarantor
Guarantee (If
(To be stamped & Notarized)
Applicable)
Any Affidavit- Original
Related to Plot If applicable signed by all
Loan, borrowers (To be stamped &
Construction Notarized)
on Loan etc.
*Applicable as per scheme
Notes:
1. All the Document waivers are to be approved as per Deviation Authority Matrix and such approval should be uploaded in system or
physical copy should be attached in the Docket
2. Indemnity or Declaration Cum Indemnity are subject to legal opinion and can be OTC- Notarized with Rs.500/- Stamp Paper
3. OTC Document to be uploaded in ERP

Designation Emp Code Name Signature

Cluster Business Head -
Maker
Cluster Credit Manager -
Checker
RCM / RMC Team -
Reviewer

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Annexure 3
Negative Country List

[Link]. Country Name [Link]. Country Name

1 Sao Tome and Principe 36 Ivory Coast
2 Afghanistan 37 Kyrgyzstan
3 Albania 38 Laos
39 Lesotho
4 Algeria
40 Liberia
5 Angola
41 Macedonia
6 Azerbaijan
42 Madagascar
7 Benin
43 Malawi
8 Bosnia 44 Mali
9 Burkina Faso 45 Mauritania
10 Burundi 46 Moldova
11 C African Republic 47 Monteserrat
12 Cameroon 48 Namibia
13 Chad 49 Nicaragua
14 Chechyan Republic 50 Niger
15 Colombia 51 Nigeria
52 North Korea
16 Comoros
53 Pakistan
17 Democratic Republic of The Congo (Zaire)
54 Palestine
18 Djibouti
55 Papua New Guinea
19 El Salvador
56 Rwanda
20 Equitorial Guinea – Malabo
57 Senegal
21 Eritrea
58 Sierra Leone
22 Ethiopia
59 Solomon Islands
23 Gabon
60 Somalia
24 Gambia (The Gambia) 61 Sudan
25 Georgia 62 Swaziland
26 Ghana 63 Tajikistan
27 Guatemala 64 Tanzania

28 Guinea 65 Togo

29 Guinea Bissau 66 Uganda

67 Uzbekistan
30 Guyana
68 Western Sahara
31 Haiti
69 Yemen
32 Honduras
70 Yugoslavia (Serbia)
33 Iran
71 Zambia
34 Iraq
72 Zimbabwe
35 Israel - Westbank, Gaza, Jerusalem

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Annexure 4
HINDUJA HOUSING FINANCE LIMITED
INSTRUCTIONS

(WHEN POWER OF ATTORNEY IS EXECUTED IN INDIA BY RESIDENT / NONRESIDENT INDIANS)

1. The Attorney should be preferably a resident of the city / town from where the loan is handled.
2. The Power of Attorney is to be executed on a non-judicial stamp paper of appropriate value as applicable in the
State, with one extra copy on a plain paper,
3. Each page of the Power of Attorney and wherever the blanks are filled in should be initialed by the executant.
4. Signatures of the executant and the Attorney should be attested by a judicial magistrate or a Notary Public.
(WHEN POWER OF ATTORNEY IS EXECUTED OUTSIDE INDIA BY NON-RESIDENT INDIANS)
1. The Attorney should be preferably a resident of the city / town from where the loan is handled.
2. The Power of Attorney should be first typed on a non-judicial stamp paper of appropriate value as applicable in the
State, with one extra copy on a plain paper, before sending the same to the executant for his signature.
3. Each page of the Power of Attorney and wherever the blanks are filled in should be initialed by the executant.
4. The signature of the executant should be attested by any authorized official of the Indian Embassy / Indian
Consulate / Trade Commissioner of India in the country where the executant resides.
5. The Attorney's signature should be verified in India, by his employer or his banker on a separate piece of paper
which should be submitted to HHF together with the Power of Attorney.
GENERAL POWER OF ATTORNEY
KNOW YE ALL MEN BY THESE PRESENTS THAT I at present residing at

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DO HEREBY APPOINT AND CONSTITUTE son/daughter of (hereinafter called "Attorney"

who has subscribed his/her signature hereunder in token of identification) and at present residing at
to be my lawful Attorney in my name and on my behalf to do any one
or all of the following acts, deeds and things, namely: -
1. To apply for a loan/s under the various schemes of Hinduja Housing Finance Limited (HHF) as also any further or
additional loan/s to HHF for such amount as the Attorney may deem fit and for that purpose to pay the processing
fee/s and sign the loan application/s in my name and on my behalf and to furnish all the details and information
required by HHF and to give any statement, letter, clarification or any other writing required or necessary for
availing of the said loan/s from HHF and from time to time to follow up the said loan application/s and do such
other things and deeds as may be necessary in relation there to.
2. To accept the loan offer letter/s and sign the acceptance/s thereof in token of my acceptance of the terms and
conditions there in contained and to pay on my behalf the administrative fees and any other charges including
commitment charge leviable in respect of the said loan/s.
3. To request HHF or agree with HHF for any change or modification in the loan amount/s, rate/s of interest, period of
repayment of loan/s or any other terms and conditions in relation to the loan/s at any time or from time to time.
4. To receive the disbursement of the said loan/s and for that purpose give effectual discharge and give all the
necessary information and documents to assist the Technical and Legal Appraisal of the property/ies purchased/to
be purchased with the help of the loan/s.
5. To mortgage any property/ies he/she may book/purchase on my behalf or which I might have booked/purchased
(whether with or without HHF's financial assistance) with HHF by deposit of Title Deeds as security for the
repayment of the loan/s granted/to be granted by HHF tome
6. To deposit on my behalf the documents of title and to state on my behalf to any Officer of HHF that the said
documents are being deposited for creating a security on the said property/ies by way of equitable mortgage of
repayment of the said loan/s. The Attorney is fully authorized to make these statements and convey my intentions
to create security on my said property/ies or any other property/ies he/she may book/buy on my behalf.
7. He / She is further authorized to make any other statements necessary to create equitable mortgage by deposit of
title deeds and also to execute any writings, undertakings, indemnities, etc. on my behalf in respect of mortgage of
the said property/ies or the guaranteeing of the repayment of the said loan/s any other writings whatsoever
required in respect of the said transactions of the loan/s granted/to be granted to me or creation of the said
security.
8. He / She is also authorized to execute any loan agreement/s, promissory notes, letter/s of declaration and indemnity
or such other documents as may be required by HHF in respect of the said loan/s.
9. He/ She is also authorized to execute in favor of HHF an irrevocable Power of Attorney authorizing HHF to execute
in its own favor or in favor of any other person, as HHF in its sole discretion may decide, legal mortgage in any form
including in the English form of the property/ies.
10. He / She is also authorized to pledge with HHF any share certificates, debentures, bonds, units issued by Unit Trust
of India, National Savings Certificates, fixed deposits or any other security owned by me in favor of HHF by way of
security for the said loan/s and to sign any documents, transfer forms or papers that may be required by HHF in
connection there with.
11. To acknowledge my liability/debt in respect of the loan/s.
12. To book a flat/s / residential unit/s on my behalf either directly or through the agency of HHF and to execute
Agreement/s for Sale for the same with any builder/seller and make payments to him therefore and to present such
Agreement/s for registration before the appropriate Registrar/Sub-Registrar of Assurance or any other authority at
any place or places in India as may be necessary. He/ She is further authorized to make payments direct to HHF on
my behalf for any flat/s / unit/s my said Attorney might book through HHF and comply with such conditions/terms
HHF may have in this behalf. He/ She is authorized to make such payments to HHF as may be demanded by HHF by
way of service charge etc. He/ She is authorized to execute any agreement/s, letters and documents as may be
required by HHF in respect of the above. The expression "builder/seller" shall include HHF and its subsidiary HHF
Developers Limited.
13. To admit execution of the Agreement/s for Sale before the said Registrar/Sub- Registrar of Assurance or any other
authority as may be required for the purpose.

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14. To obtain possession of the flat/s / unit/s as and when the same is ready for occupation.
15. To receive loan/s and all other documents including title documents on my behalf from HHF and execute receipt/s
therefor.
16. To sign forms, documents and papers required for the purpose of registration of Co- operative Housing Society or
a Limited Company or an Association of Apartment Owners and become member thereof participating in all the
meetings and proceedings from time to time, obtain share certificates and/or other documents issued in my name
and hold the same as my Attorney and obtain possession of the flat/s.
17. To open and/or operate Bank Account in any Bank in India in my name both resident as well as non-resident. The
account may be operated in Indian Currency or foreign currency to be remitted by me from time to time.
He/ She is authorized to do all such acts, deeds and things including signing any papers/documents as are necessary and
incidental to the above AND that any act or statement or writing of my said Attorney in pursuance here to shall be
deemed to be fully authorized and ratified by me.
Dated at this the day of 200.

Specimen Signature of Attorney Signature

Address:

Annexure 5
(To be on Rs.100 stamp paper with duly notarized)
INDEMNITY CUM DECLARATION CUM UNDERTAKING
This Deed of Undertaking cum Declaration is made at this day of in the year,
by:
I/We, Mr./Mrs. Age , residing at being the Borrowers/Mortgagors [Hereinafter referred to as
“the Parties”, (The expression shall, unless repugnant to the context or meaning thereof, is deemed to include his/her
survivors, heirs, executors and administrators) in favor of:
Hinduja Housing Finance Limited (HHFL), a non-banking finance company registered under the Companies Act, 2013
and having its Registered Office at 27, Developed Industrial Estate, Guindy, Chennai – 600 032 (hereinafter “HHFL” or
the “Mortgagee", which expressions shall, unless it be repugnant to the subject or context thereof, include its
successors and assigns) of the Second Part.
WHEREAS:
On the request of the Borrowers HHFL has agreed to sanction aggregating Credit facility of Rs. .00 Lacs
(Rupees Lacs Only) as granted to Mr./Mrs. against
registered mortgage of the properties described in the Schedule annexed and appended hereto (hereinafter referred to
as “said Properties”).
The o r i g i n a l t i t l e d e e d s of the said Properties are lying deposited with
Bank/ NBFC ( Branch), for the various facilities sanctioned by the said Bank to Mr./Mrs.

1. The Borrower/s has / have requested HHFL to take over its liabilities from the said Bank and the Mortgagors have
agreed to create equitable/simple mortgage of the said Properties in favor of the HHFL within days from
………………………. As per sanction letter.

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2. The Mortgagor/s state/s and declare/s that it will take 7 days to:
• Complete the formalities of closure of the account with the said Bank and all other existing bankers of the
Borrower.
• Collect the original title deeds of the aforesaid Properties deposited with the said Bank, for the various facilities
sanctioned to Mr./Mrs. after closure of the said accounts.
• Procure the Nil Liability/No Dues Certificate from the said Bank/NBFC.
• Obtain fresh Search Report from ROC/Sub-Registrar and Title Clearance certificate in respect of the said Properties.
• Obtain Valuation Report of the said Properties, etc.
• Complete the mortgage formalities of the said Properties in favor of the HHFL.

1. The Borrower states and declares that HHFL has agreed to release the facility sanctioned, totally aggregating to Rs.
.00 Lacs (Rupees Lacs Only) pending the compliance of requisition/conditions listed
above, subject to execution of an Indemnity cum Declaration for creation of mortgage, in favor of the HHFL.
2. The Borrower and Mortgagor [through their authorized signatories], hereby undertake with the HHFL, its
executors, successors and assignees as follows:
• To submit the original title deeds of the said Properties to HHFL.
• To submit the Nil Liability/No Dues Certificate from the Mr./Mrs./M/s
from existing Bankers.
• To execute equitable mortgage/registered mortgage documents and/or comply with such formalities as may be
required by the HHFL for fully effectuating the transfer of the said Properties in favor of the HHFL by way of
mortgage to secure the aforesaid facilities aggregating Rs. .00 Lacs (Rupees Lacs
Only) sanctioned to the Borrower.
• To comply with the requisition and complete all the formalities stated hereinbefore within 7 days from the date of
execution of these presents.
3. In the event of failure of the Parties to complete all the formalities within the prescribed time of 7 days, HHFL will
be at liberty to call back the entire amount of facility, availed by the Borrower.
4. The Parties hereby declare that the Properties stands mortgaged to HHFL for the above facilities sanctioned by it
and that the Mortgagors shall execute the mortgage deed in its favor on obtaining the original documents from the
said Bank. The Mortgagors further declare that HHFL will have a charge on the said Properties irrespective of
whether an equitable mortgage / registered mortgage is created in its favor or not and that the Mortgagors at no
point of time shall dispute the charge of HHFL over the said properties for want of creation of equitable
mortgage/registered mortgage or otherwise.
5. The Parties hereby indemnify the HHFL and its officials and agree to repay the entire credit facilities which is / are
availed by the Borrower, in the event of failure of the Parties to comply with the requisition of HHFL as stated above
within the stipulated period of 15 days.
6. The Parties hereby keep HHFL safe and indemnified against all claims, demands, suits, actions, proceedings, loss,
damages, costs, charges, expenses of whatsoever nature which may be made or brought or commenced against it
or be paid, sustained, suffered or incurred by it as reason consequent direct or indirect by reason of release of the
said credit facilities pending compliance of the aforesaid requisitions in pursuance of the foregoing request made
by the Parties.
7. The Parties further declares and states that if the HHFL incurs any expenses, cost, charges, then in such an event,
HHFL shall have the right to set off any such amount, expenses, charges, cost, etc. incurred by HHFL against the
amount of the Parties’ Fixed Deposit, dividend warrants, etc. or any other Deposits maintained by the Parties with
HHFL.
8. The Parties also declares that HHFL shall have the liberty to proceed against any movable or immovable Properties
owned and possessed by the Parties, to recover any loss, damages, costs or expenses caused to HHFL as reason
consequent direct or indirect by reason of release of the credit facilities pending compliance of the aforesaid
requisitions in pursuance of the foregoing request made by the Parties.

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9. The Parties shall pay to HHFL on demand, the amount of any such loss, damage, charges and expenses together
with interest @ ……. % per annum from the date of payment by HHFL until reimbursement by the Parties.
10. Failure to adhere to the terms and conditions of this declaration shall be construed as an event of default as
mentioned in the Facility Agreements/Sanction Letters & other documents executed by and between the Parties
and HHFL and shall be entitled to take such action as provided in the aforesaid documents. This undertaking shall
be read in conjunction with the documents executed by the Parties.
IN WITNESS WHEREOF the Parties have executed these presents at on the day of
/ / .

SIGNED AND DELIVERED

Within the named all Borrower/s and Mortgagor/s

Name Signature

SCHEDULE
DESCRITION OF PROPERTY
All Parts and parcels of Non-Agriculture Residential
, Owned and possessed by with boundaries
as under;

SIGNED AND DELIVERED

Within the named all Borrower/s and Mortgagor/s
Name Signature Photos

Who has affixed his/her signature in the presence of witnesses;

(1) Mr./Ms.
(2) Mr./Ms.

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Annexure 6
(To be executed on a Rs.100 /- stamp paper)
TRIPARTITE AGREEMENT
THIS Agreement is made and executed here at on this day of 200
between Shri/ Smt , son/daughter/wife of Shri/ Smt
(hereinafter called the “Borrower” which term so far as the context admits shall mean and
include his/her heirs, executors, successors, administrators and legal representatives of the First Part and
-------------------------------- a Company incorporated under the Companies Act 1956, having its registered office at
or, a partnership firm through their Director/Partner/Proprietor Shri ,
S/o Shri having its office at ---------------------------------------------- hereinafter referred to as the
"BUILDER" (which expression shall unless the context otherwise requires, include its successors and permitted assigns)
of the Second part and
HINDUJA HOUSING FINANCE LIMITED, a company registered under the Companies Act, 1956 and having its registered
office at 27 A Developed Industrial Estate, Guindy, Chennai – 600032, and having its branch office at
of the Third Part
WHEREAS the Borrower has represented that the Builder is of his choice and that he has satisfied himself with regard
to integrity, capability for quality construction of the Builder and the Builder’s ability for timely completion and on time
delivery of the Project;
AND WHEREAS, as part of its business activity, builder has developed the project being -----------------------------------------
situated at ---------------------------------------(hereinafter referred to as the “PROJECT”);
AND WHEREAS the Builder has invited applications for allotment by sale of residential apartments in the said project
for which various payment options have been offered to the customers;
AND WHEREAS the Builder and the Borrower have entered into an agreement dated for the purchase of unit no
in the said Project of the Builder;
AND WHEREAS the Borrower and the Builder have jointly approached HINDUJA HOUSING FINANCE LIMITED for a Loan
of Rs towards payment of the sale / purchase consideration of the residential apartment in
the Project;
AND WHEREAS the Borrower has agreed to secure with HINDUJA HOUSING FINANCE LIMITED the said residential
apartment under finance as and by way of mortgage of all the rights, title, benefits that would accrue from the said
residential apartment till the currency and term of the said loan to be advanced/advanced. The Builder also agrees and
confirms that they shall take note of the said mortgage created by the Borrower and undertake not to create any third-
party rights or security interest of any sort whatsoever on the said flat without the prior written consent of HINDUJA
HOUSING FINANCE LIMITED;
AND WHEREAS based on several representations made by the Borrower and the same being acknowledged and
consented to by the Builder, the Lender granted a loan of Rs. /- (Rupees
only) to the Borrower, in terms of the Loan Agreement dated (hereinafter referred to as the "Loan
Agreement") duly executed by the Borrower;
AND WHEREAS HINDUJA HOUSING FINANCE LIMITED based on such requests and representation and at its sole
discretion, shall make disbursements under the Loan, which factor is hereby confirmed and acknowledged by the
Borrower herein;
AND WHEREAS HINDUJA HOUSING FINANCE LIMITED has considered the said request with a clear understanding and
an irrevocable undertaking by the Borrower that subsequent to the disbursement, if any, as requested by the Borrower,
there would be no repayment default for any reason whatsoever including but not limited to any concern/issues by and
between the Borrower and the Builder/Developer;
AND WHEREAS the Borrower has represented, and such representation being a continuing representation, that
Borrower’s obligation to repay the Loan shall be a distinct and independent obligation more particularly independent
of any issues/concern/dispute of whatsoever nature between the Borrower and Builder;

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AND WHEREAS one of the conditions for HINDUJA HOUSING FINANCE LIMITED sanctioning the said Loan to the
Borrower was that the understanding as stipulated in the recitals above shall be reduce and recorded in writing with an
understanding and intent of making the same irrevocable, binding and enforceable by and between the Borrower and
the Builder such time this formality is complied with to the satisfaction of the Lenders and documents in evidence
thereof are delivered to the Lenders there will be no disbursement pursuant to the Loan Agreement;
AND WHEREAS in consideration of HINDUJA HOUSING FINANCE LIMITED agreeing to give loan to the Borrower, all the
Parties have agreed as under.
NOW THEREFORE IT IS HEREBY AGREED BY AND BETWEEN THE PARTIES THAT:
1. The foregoing recitals as mentioned above are incorporated herein by this reference and constitutes an integral
part of this Agreement.
2. The housing loan advanced to the borrower by HINDUJA HOUSING FINANCE LIMITED shall be subject to the
borrower's repayment capacity as assessed by HINDUJA HOUSING FINANCE LIMITED and shall be secured against
the first and exclusive mortgage of the residential apartment to be acquired in the Project in favor of HINDUJA
HOUSING FINANCE LIMITED.
3. The housing loan advanced to the borrower by HINDUJA HOUSING FINANCE LIMITED shall be repayable by the
borrower by way of Equated Monthly Instalments (EMI). The date of commencement of EMI shall be the first day
of the month following the month in which the disbursement of the loan will have been completed and
consequently the due date of payment of first EMI shall in such a case be the last day of the said following month.
Till the commencement of EMI, the borrower shall pay Pre-EMI, which is the simple interest on the loan amount
disbursed calculated at the rate of interest as mentioned in the respective loan agreement of the Borrower.
The Borrower has informed HINDUJA HOUSING FINANCE LIMITED of the scheme of arrangement between the
Borrower and the Builder in terms whereof the Builder hereby assumes the liability of payments under the loan
agreement as payable by the Borrower to HINDUJA HOUSING FINANCE LIMITED during the [insert period of
liability] (the period be referred to as the “Liability Period” and the Liability be referred to as “Assumed Liability”) It
is however agreed that during the liability period the repayment liability is joint and several by and between the
Borrower and the Builder. The assumption of liability by the Builder in no manner whatsoever releases, relinquishes
and / or reduces the liability of the Borrower and that same shall not be affected in any manner on account of any
difference and / or dispute between the Borrower and the Builder under the arrangement between them.
4. That irrespective of the stage of construction of the Project and irrespective of the date of handing over the
possession of the residential apartment to the Borrower by the Builder the Borrower shall be liable to pay to
HINDUJA HOUSING FINANCE LIMITED regularly each month the EMIs as laid down in the Loan Agreement to be
signed by and between the lender and the Borrower. The Borrower shall execute an indemnity and such other
documents as may be required by HINDUJA HOUSING FINANCE LIMITED in favor of HINDUJA HOUSING FINANCE
LIMITED in this regard.
5. The Borrower shall ensure to pay to the Builder his own contribution in full i.e., the cost of the flat minus the loan
amount being disbursed by HINDUJA HOUSING FINANCE LIMITED before availing of the disbursement from
HINDUJA HOUSING FINANCE LIMITED.
6. That HINDUJA HOUSING FINANCE LIMITED shall at the request of the Borrower disburse the balance sale
consideration to the Borrower by way of cheque drawn in favor of the Builder. Any balance payment or any
payment towards escalation towards the cost of the residential apartment shall be made by the Borrower himself
to the Builder.
7. That the Builder shall not hand over the actual and physical possession of the said flat/residential apartment to the
Borrower before execution and registration of the said deed and the original registered sale deed shall be submitted
to HINDUJA HOUSING FINANCE LIMITED directly by the Builder to be kept by HINDUJA HOUSING FINANCE LIMITED
towards security for the said loan.
8. That if the Borrower fails to pay the balance amount representing the difference between the loan sanctioned by
HINDUJA HOUSING FINANCE LIMITED and the actual purchase price of the flat/residential apartment, or in the
event of death of the Borrower or in the event of cancellation of the residential apartment for any reason
whatsoever the entire amount advanced by HINDUJA HOUSING FINANCE LIMITED will be refunded by the Builder
to HINDUJA HOUSING FINANCE LIMITED forthwith. The Borrower hereby subrogates all his rights for refund with
respect to the said residential apartment in favor of HINDUJA HOUSING FINANCE LIMITED.

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9. Further if the Borrower commits a breach of any of the terms and conditions of this Tripartite Agreement it shall be
treated as an event of default under the Agreement for Sale / Allotment cum Agreement for sale or any such
agreement or document signed by and between the Borrower and the Builder for the sale of the said residential
apartment.
That in the event of occurrence of default under the Loan Agreement which would result in the cancellation of the
Allotment as a consequence thereof and/or for any reason whatsoever if the allotment is cancelled, any amount
payable to the Borrower on account of such cancellation shall be directly paid to HINDUJA HOUSING FINANCE
LIMITED. However, it is further agreed between the Parties that such payment made by the Builder directly to
HINDUJA HOUSING FINANCE LIMITED shall not absolve the Borrower from his liability to pay the residual amount,
if any, from the outstanding under the Loan Agreement.
That the Borrower agrees that it unconditionally and irrevocable subrogates its right to receive any amount payable
by the Builder to the Borrower in the event of cancellation in favor of HINDUJA HOUSING FINANCE LIMITED and
that the act of payment by the Builder to HINDUJA HOUSING FINANCE LIMITED under this clause shall amount to
a valid discharge of the Builder of its obligation to pay the Borrower such cancellation amount.
Further that the parties agree that the Builder shall in no circumstances forfeit any amount over and above the
amount equivalent to the Borrowers contribution towards the purchase consideration paid to the Builder.
Borrower’s contribution for the purposes of this clause shall mean and include the difference between the total
cost of the residential apartment and the Loan amount as mentioned above.
10. Further, the Builder, in the in the event of default of repayment as mentioned in clause 2 and 3 herein above, shall
on intimation by HINDUJA HOUSING FINANCE LIMITED cancel the allotment of the residential apartment in favor of
the borrower and refund all monies to HINDUJA HOUSING FINANCE LIMITED directly under intimation to the
borrower for appropriation and adjustment by HINDUJA HOUSING FINANCE LIMITED against all monies due to it
from the Borrower as mentioned above.
11. The Builder also confirms and undertakes that it shall submit to HINDUJA HOUSING FINANCE LIMITED all
documents for the Project as requested by HINDUJA HOUSING FINANCE LIMITED and shall keep HINDUJA
HOUSING FINANCE LIMITED informed of the progress of the project and shall obtain a clearance from HINDUJA
HOUSING FINANCE LIMITED before handing over possession of the respective apartment to the borrower.

Signed and Delivered by the within-named

Borrower

Signed and Delivered by the within-named Builder

By the hand of

Signed and delivered by the within-named

HINDUJA HOUSING FINANCE LIMITED by the hand of
Mr./Ms.
Its

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Corporate Office: No: 27-A, Developed Industrial Estate, Guindy, Chennai - 600 032.
Ph: 044-3925 2525 | Email: compliance@hindujahousingfi[Link]
[Link]fi[Link]

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