GIC Re

HOUSING LOAN
SCHEME-2012

Administrative Instructions
(effective 01.01.2012)

General Insurance Corporation of India

General Insurance Corporation of India

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 General Insurance Corporation of India

Index

PARA NO. TOPIC PAGE NO.

1 Preamble 4

2 Administration of the Scheme 4

3 Scope and Eligibility 4

4 Limit of Loan 6

5 General Procedure 6
6 Loan for Repair / Renovation / Development 7

7 Transfer of Loan 8

8 Loan for Second Property 10

9 Security 10
10 Rate of interest 11

11 Loan repayment 11

12 Miscellaneous provisions 13
13 New Housing Loan / Transfer of Loan / Additional Loan 14
14 Housing Loan Scheme 2012 – Broad parameters 16

15 Annexure-1 18
16 Annexure-2 19

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 General Insurance Corporation of India

GENERAL INSURANCE CORPORATION OF INDIA

HOUSING LOAN SCHEME - 2012

1. Preamble

The Housing Loan Scheme is a non-core benefit by way of interest subsidy, extended to
the employees of the Corporation in order to facilitate to own reasonable dwelling place/s
for residential purpose at the place of work or for the purpose of staying in due course at
any place in India thereby, creating a conducive environment and motivating the
employees for his/her best performance in the Corporation.

2. Administration of the Scheme :

The Scheme shall be implemented with a tie-up with GIC Housing Finance Ltd.
(GICHFL), wherein the entire processing and disbursement shall be made by GIC
Housing Finance Ltd. and the subsidised interest shall be borne by the Corporation.

3. Scope and Eligibility

The loan under the Scheme is available, subject to satisfying the terms and conditions of
GIC Housing Loan Scheme, 2012 and also various provisions of housing loan of
GICHFL:

a. The loan under this scheme shall be available to any permanent employee of the
Corporation who has put in a minimum of three years‟ service.

However, in case of employees from ex-servicemen category, the service eligibility

criteria is reduced to two years.

b. The loan shall be completely processed by the GICHFL. The decision of the GICHFL
on the validity of any documents for processing shall be final and binding upon the
employee.

c. The housing loan shall be available for the purchase of land and to construct a house
thereon.

d. The housing loan shall be available for the purchase of land and a house thereon
whether the same is complete or incomplete.

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e. The housing loan shall be available for the purchase of a house/flat/apartment whether
complete or under construction.

f. The housing loan shall be available for the purchase of an apartment in a building
which is subject to Apartment Ownership Act and/or any other law having similar
provisions.

g. The housing loan shall be available for the purchase of a flat whether ready or under
construction in Co-operative Housing Society whether registered or under registration.

h. The housing loan shall be available for the purchase of land and construction of a
house / flat / apartment in a Co-operative Housing Society where the number of
members of the Industry is not less than 90% of the total membership.

i. The housing loan shall be available for extension / renovation of an existing house /
flat / apartment, provided the Corporation is satisfied on such proof as they deem fit,
that the same is essential to suit the changed circumstances and needs of the
employee.

j. The housing loan shall be available for the purpose of repayment of a loan taken
temporarily from Provident Fund, Banks, Co-op. Societies, Housing Co-operatives or
other Public Financing Institutions to finance the purchase of a house/ flat /apartment,
including land, pending sanction of the loan under this Scheme provided the employee
gives intimation about raising such temporary loan and simultaneously applies for
loan under this Scheme, and subsequently produces evidence of repayment of the
temporary loan within one month of disbursement of the loan to him/her under the
Scheme.

k. The facility of Second Loan will be available not more than twice during the entire
service tenure of the employee, which includes renovation or transfer of existing loan
or acquiring second property. The renovation or transfer of existing loan will be
applicable on both the properties.

l. The quantum of Second Loan available to an employee for the aforesaid purposes
which shall be determined by taking into account his/her current cadre eligibility for
Scheme Loan minus the Scheme Loan already sanctioned and Supplementary
Loan minus the Supplementary Loan already sanctioned to him/her but not
exceeding the actual cost of the aforesaid items. In no case the Scheme loan &
Supplementary loan sanctioned earlier and the second loan to be sanctioned
subsequently together shall exceed his current cadre eligibility for the Scheme &
Supplementary Loan.

The eligibility for the second property loan will be calculated by the housing loan
section of the Corporation and forwarded to GICHFL for sanction of loan.
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4. Limit of Loan (w.e.f. 1st April 2011)

Pre Revised Provision Revised Provision

Scheme Supplementary Scheme Supplementary
Cadre Loan Loan Total Loan Loan Loan Total Loan
@ 5% p.a. @ 7.5% p.a. (Rs.) @ 5% p.a. @ 7.5% p.a. (Rs.)
(Rs.) (Rs.) (Rs.) (Rs.)
Subordinate
175,000 225,000 400,000 400,000 500,000 900,000
Staff
Record Clerk 225,000 275,000 500,000 500,000 600,000 1,100,000
Asst. / Sr. Asst.
275,000 325,000 600,000 600,000 700,000 1,300,000
/ Stenographer
AM / DM 325,000 375,000 700,000 800,000 900,000 1,700,000
SM 365,000 435,000 800,000 900,000 1,000,000 1,900,000
CM / AGM 400,000 450,000 850,000 900,000 1,000,000 1,900,000
DGM 400,000 500,000 900,000 1,000,000 1,100,000 2,100,000
GM 400,000 600,000 1,000,000 1,000,000 1,100,000 2,100,000

The above limits of loan shall be available for individual employee for a single property.
However, in case of husband and wife working in the Corporation, the housing loan shall
be sanctioned together for a common property, if they desire so, as per the entitlement of
the couple together and such aggregate housing loan amount of both husband and wife
should not exceed the cost of the house/flat/apartment.

5. General Procedure:

The employee has to make an application for availing of housing loan through GIC Re to
GICHFL and GICHFL will consider granting loans to employees of GIC Re subject to
satisfactory compliance of the following terms and conditions :

a. The deduction from salary towards monthly installments of loan and interest due by the
employees to GICHFL, shall be in accordance with the amount advised by GICHFL.

b. The Equated Monthly Installments (EMI) so deducted shall be remitted to GICHFL

alongwith a statement giving particulars like the name of the borrower, the amount
deducted and the month of deduction etc., so as to reach GICHFL on or before the last day
of the month.

c. The EMI deductions relating to the loan given by GICHFL should be given priority over
other deductions like Mutual Benefit Society, etc., and should rank immediately next to
Income Tax, P.F. and Corporation‟s existing Housing Loans, recoveries, if any, in respect
of court decisions, Bank / Credit Societies Loan.
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d. In respect of transfer of employee-borrowers, the last pay certificate issued should include
the deduction particulars of the EMI due to GICHFL.

e. Whenever the services of an employee-borrower cease from the Corporation due to any
reason i.e. superannuation/CRS/VRS/Resignation/termination/death etc., the settlement of
his /her terminal dues, if payable by the Corporation, shall not be released unless:

(i) The housing loan borrowed from GICHFL and interest thereon has been fully
repaid;

(ii) GICHFL gives „No Dues Certificate‟ in respect of his/her housing loan.

f. In cases where an employee-borrower has taken housing loan from the Corporation, as
well as Supplementary /Additional Loan from GICHFL, the Corporation would retain the
original title deed so long as the loan has not been fully repaid/recovered. On the
Corporation‟s loan having been repaid, the original title deeds in respect of which
GICHFL, has a pari passu charge, would be handed over to GICHFL.

g. No employee shall let out a house constructed with the assistance of loan under this
Scheme as long as the employee is posted at the same station where he/she has
constructed the house or purchased a flat. In exceptional circumstances, however, the
Corporation may permit the let out of the house/flat/ apartment even though the employee
is posted at the same station provided the Corporation is satisfied of the genuineness of
the reasons.

h. The employee will during the terms of the loan keep the house/flat/apartment properly and
adequately insured against the risks of fire, riot, earthquake and shall maintain it in good
state of repairs. For this purpose, the employee shall permit any authorised officer of the
Corporation to inspect the property on behalf of the Corporation at all reasonable times.

i. The employee borrower availing housing loan complies with the provision of depositing
every year insurance policies covering the individual house/flat/ apartment for the full
value of the property till the entire housing loan with interest is repaid.

j. All expenses such as valuation, legal charges, Architect‟s fee for supervision shall be
borne by the employee borrower.

6. Loan for Repair/Renovation/Development

In case an employee wishes to avail of an additional loan under the revised Housing Loan
Scheme-2012 for repair /renovation/development of a house/flat/apartment purchased by
availing housing loan from GIC Re, the outstanding loan of GIC Re shall be transferred to
GICHFL for sanctioning the additional loan. The title deeds and charge of the property

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shall be transferred to GICHFL after receiving the outstanding loan of GIC Re from
GICHFL

7. Transfer of Loan

The employee borrower is allowed to take a loan under the revised Housing Loan
Scheme-2012 to clear the outstanding housing loan/s already taken for purchase of a
house, from other Financial Institutions referred to in the para 3 (j) as mentioned above.

Following procedure is required to be complied in respect of transfer of the existing

housing loan :

a. The quantum of loan eligibility for transfer of loan cases would be determined by
considering the employee‟s current cadre eligibility of loan minus the previous loan
sanctioned, in addition to the existing outstanding loan deposited with the Corporation,
(excluding interest) subject, of course, to the limitation of the cost of the proposed new
dwelling unit /house to be purchased/constructed. It is to be noted that at no point of time
the total Housing Loan granted to the employee shall exceed the employee‟s current cadre
eligibility (including supplementary loan) or the total cost of the dwelling unit, whichever
is lower.

b. All other terms and conditions of the revised Scheme are applicable to the „transfer of
loan‟ in addition to the following :-

(i) The employee-borrower to make a written application to the Corporation

intimating the intention to sell the existing accommodation acquired with the loan
assistance and buying a new one, seeking permission/No objection from the
Corporation;

(ii) Corporation may, if it is satisfied as to the genuineness of the reasons, intimate the
employee-borrower that there would be no objection to his doing so, subject to
compliance with specified conditions;

(iii) Employee-borrower to deposit with the Corporation the amount equal to

outstanding loan together with interest;

(iv) Mortgage/charge of the existing accommodation to be released by the

Corporation;

(v) The relevant documents of title, etc. relating to the new accommodation proposed
to be purchased be submitted to the GICHFL for being scrutinised;

(vi) Employee-borrower to deposit the title deeds of the new accommodation or other
relevant documents to GICHFL for processing;

(vii) The time limit for completion of the full procedure of transfer of loan shall be six
months with discretion to the Corporation to extend the period in genuine case of
difficulty;

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(viii) It is necessary that the existing dwelling unit purchased / constructed with the help
of Housing Loan from the Corporation, be disposed off by sale, to a person who is
not a family member or a blood relatives viz. parents, brothers, sisters and
grandparents, etc.

(ix) No housing loan shall be granted for purchase of property from blood relatives viz.
parents, brothers, sisters and grandparents, etc.

Illustration:

If „A‟, Sr. Asst. had availed Housing Loan of Rs.6.00 lacs (2.75 + 3.25 suppl.) earlier, and
now wishes to avail Transfer of Loan in 2012 as an AM for a new flat in Mumbai, costing
Rs.20.00 lacs, his eligibility would be as given below:-

OLD HOUSE NEW HOUSE

1) Cost Rs. 7.00 Lacs 1) Cost Rs. 20.00 Lacs

2) Scheme Loan Rs. 2.75 Lacs 2) Balance sale proceeds Rs. 7.00 Lacs
(1991)
GIC HF Loan/ Rs. 3.25 Lacs 3) Loan required Rs. 13.00 Lacs
Suppl. Loan
Rs. 6.00 Lacs
4) Loan eligible :
a. Scheme Loan:
Private savings/ Current eligible (-) Old
borrowings Rs. 1.00 Lacs sanctioned (i.e. 8.00 – Rs. 5.25 Lacs
2.75)_
Rs. 7.00 Lacs
Add: Old o/s.
3) Sale Price in 2012 Rs. 10.00 Lacs Scheme loan
Deposited (excluding Int.)
Rs. 0.75 Lacs
4) a) O/s. Loan to Rs. 0.75 Lacs Rs. 6.00 Lacs
be Deposited (Scheme)
with the Rs. 2.00 Lacs
Corporation (Supp.)
b. Suppl. Loan for the balance of Rs. 5.75 lacs [i.e.
20.00 - (7.00 + 6.00)] = 7.00; subject to balance
b) O/s. Interest Rs. 0.25 Lacs available eligibility limit of Rs.5.75 lacs (max.) & his
Rs. 3.00 Lacs Repaying capacity as per para 11(g) of HL Scheme.
Balance with
employee (10.00- Rs. 7.00 Lacs
3.00)

NOTE :-

The entire sale proceeds should be utilised for the repayment of outstanding loan to the
Corporation and /or to any Housing Finance Institution as per the Corporation‟s record;
and the balance for the new house; and only for the uncovered balance, fresh loan can be
given by the GICHFL. In other words, in the above example, it is not permissible to

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utilise the sale proceeds of Rs.10.00 lacs for any other purpose than what is mentioned
hereinabove, and then claim more scheme loan/supplementary loan as the case may be.

8. Loan for Second Property:

Employees are permitted to avail loan for a second property within the overall loan limit
less already availed housing loan in the past without disposing of the first property, as in
the case of transfer of loan.

9. Security

The prime security to be taken from an employee for granting of loan shall be as per the
terms and conditions of the GICHFL.

Besides the prime security, the GICHFL shall take the following securities :

a. Assignment of Life Insurance Policies maturing on or before the date of superannuation.

b. The employee shall also give irrevocable letter of authority in favour of the Trustees of
the Provident Fund confirmed by the nominee/s authorising the Corporation to adjust the
entire credit balance of Provident Fund with interest accumulated towards the balance of
the housing loan amount together with the interest remaining unpaid, cost, charges and
expenses, if any.

c. An irrevocable letter in favour of the Corporation confirmed by the nominee/s authorising

the Corporation to adjust the entire amount payable as gratuity towards the balance of the
housing loan amount together with the interest remaining unpaid, cost, charges and
expenses, if any.

d. The employee should also execute a Promissory Note on a revenue stamp (as applicable
from place to place and as prevalent from time to time) to be renewed after every 30
months confirmed by the nominee/s of the Provident Fund and Gratuity account of the
employee to cover the loan amount and interest (as prevalent from time to time as per the
provisions of the Scheme). The Promissory Note as and when renewed, will be on the
reducing balance of the loan amount.

e. The employee shall give a irrevocable letter of authority in favour of the Corporation
authorising them to make monthly deductions from his/her salary towards repayment of
loan, interest, cost, charges and expenses.

f. In case of maturity of the LIC Policy given as collateral security, the amount received by
way of term installment may be repaid to employee borrower instead of adjusting the
same against housing loan amount. However, in case the facility of paying “interest only”
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is availed during the balance period of service without payment towards principal amount,
the maturity amount/interim payment of collateral security should be adjusted against the
outstanding housing loan.

10. Rate of Interest

a. The interest will be @ 5% p.a. Simple Interest for the Scheme loan.

b. In case the flat/ house/apartment or any part thereof is rented out by the employee during
the period the loan is outstanding, the rate of interest shall be @ 7.5% p.a. Simple
Interest; However, where an employee has been transferred to another centre and the
house /flat /apartment is rented out by the employee to the Corporation the rate of interest
will not be revised.

c. The Supplementary loan will carry interest @ 7.5% p.a.

d. The EMI will be informed by the GICHFL. The differential interest over and above the
above rate, upto the limit of loan, as per the Scheme would be borne by the Corporation,
as interest subsidy.

e. Perquisite tax will be as per Income Tax Rules.

f. The interest shall be charged till the date of resignation, retirement, death and not till the
amount is realised from the terminal benefits. However, in case of dismissal, interest will
be charged till the full amount of outstanding loan is realised.

g. In case additional structure is put up with the employees‟ own resources, additional
interest may not be charged, if the additional structure is exclusively let out.

h. In case the employee fails to submit declaration in a particular year, the high rate of
interest to be charged only from the date of the last declaration and not from the date of
grant of loan.

11. Loan Repayment

a) The loan should be repaid in equal monthly installments spread over the balance period of
service or 30 years whichever is less. In case where the full amount of the loan is
disbursed within one year from the date of the disbursement of the first installment, then
the recovery of the first installment, shall commence one year after completion of the
disbursement of the final installment of the loan. If, however, disbursement of the full
loan amount is not completed within a period of one year from the date of the
disbursement of the first installment of the loan, then the recovery of the monthly
installment shall commence two years after the date of the disbursement of the first
installment on the amount of the loan actually disbursed or one year after taking
possession whichever is earlier. However, the interest will be charged on the installments
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already released till the date of fixation and commencement of first EMI installments and
the charged interest will be added for the purpose of fixation of EMIs as advised by
GICHFL.

However, an employee who wishes to repay the installment with interest or interest alone
from the date of disbursement of partially disbursed loan, he/she can also opt for the
same.

b) An employee with balance period of service of less than 30 years may be given the choice
of having the loan repayment worked out on 30 years basis and the repayment of the same
be made in installments in the balance period of service provided that the balance of
Provident Fund and Gratuity amounts to which the employee is entitled on his/her
retirement will be adequate to cover the balance of loan.

Provided, however, where an employee assigns an Endowment Life Insurance Policy

maturing on or before the normal date of retirement, then the amount of installment
payable shall be calculated on the amount of the loan reduced by the amount of the
Endowment Life Insurance Policy, maturing on or before the normal date of retirement for
the full amount of the loan, then, only the interest will be recovered on the loan amount
during the balance period of the service.

c) Where the employee has balance period of service of 15 years or less, there will be no
repayment of principal amount through EMIs provided the employee gives an Endowment
Life Insurance Policy maturing at the time of his/her retirement for the full amount of the
loan or ensures to keep sufficient balance in his/her Provident Fund account and the
amount of accrued Gratuity is sufficient to meet his/her liability of the loan amount. Only
interest will be payable on the loan amount during the balance period of service.

d) However, the entire Supplementary Loan shall be repaid in equated monthly installments
during the balance period of service of the employee. The recovery of the Supplementary
Loan will commence from the month immediately following the month in which such
loan or part thereof is disbursed, on the amount of loan actually disbursed. The repayment
options under this section will not be available in respect of the Supplementary Loan (i.e.
concessions provided for scheme loan as per above paras are not applicable for
supplementary loan).

e) The installments for repayment of the loan and the interest will be recovered by deduction
from the monthly pay of the employee. In case of cessation of service of an employee for
whatever reason, the outstanding loan amount will become payable immediately on such
cessation and the Corporation will have the right to recover the balance of loan in full
with interest from the security offered including the balance amount standing to the credit
of the Provident Fund, Gratuity of the employee etc.

f) The employee shall give an irrevocable authority to the Corporation to deduct the monthly
installment from his/her salary every month alongwith interest, cost, charges, expenses,
arrears of Society outgoings, LIC premia, Govt. And Local Body Taxes, dues and
recoveries, etc. that the Corporation may have to bear to continue to hold good and
adequate security offered for the loan.

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g) The monthly installment in repayment of the aggregate of Scheme Loan and

Supplementary Loan should not exceed 45% of the employee‟s gross monthly
emoluments (gross monthly emoluments will include Basic Pay + D.A. + Allowances +
Prorata Bonus at current rate).

h) The basic pay is to be taken into account as on the date of application of loan. However,
keeping in view the date of revision of quantum of housing loan, the basic pay as on the
date of revision may be taken into account provided the construction is not completed.

i) Loan for the purposes enumerated in the Scheme will be available to employees in respect
of properties situated anywhere in India.

12. Miscellaneous Provisions

Request for release of title deeds of the flat / house / apartment constructed with the help
of loan under the Scheme will be considered on the following conditions being fulfilled :

a) The loan sanctioned to the employee concerned stands fully repaid alongwith interest and
other dues, if any;

b) The release of title deeds of the flat / house / apartment will be in favour of the Society, if
any, which will in turn convey the same to the employee concerned subject to the Bye-
Laws of the Society;

c) Municipal Corporation / Local Authority‟s permission for Sub-division of the land and
separate numbering of the portion of the land on which the particular flat / house /
apartment stands is obtained;

d) Permission, where necessary of the other Public Authorities in respect of common

amenities/common passages, etc. is obtained;

e) The “release” shall not create any obstruction with regard to the common passages and
common amenities available to the Society as a whole or act adversely in any manner to
the Society‟s interest or the Corporation‟s interest, if any, in this regard; and

f) The Corporation being satisfied that by such release the Corporation‟s interest, as a
Mortgagee, is not in any way adversely affected.

g) Application for housing loan of employees under suspension shall not be considered. In
case some installments are already released, the matter may be examined in the light of
the facts of the case. However, in cases where although the employee is not suspended but
the disciplinary proceedings are contemplated/pending, the Competent Authority may take
a decision on the merits of each case taking into account the gravity of charges, penalty
likely to be imposed in case the charges are proved, etc.

h) It is necessary to obtain joint undertaking on stamp paper of appropriate value to protect

the interest of the Corporation in the event of either the husband or the wife leaving the
Corporation before the entire loan is repaid.
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i) Employees who are promoted to a higher cadre after housing loan is sanctioned to them,
additional loan may be allowed on the basis of higher entitlement in the promoted cadre,
provided the construction is not complete or the full sanctioned loan has not been
disbursed as on the date of application for additional loan.

j) In case of transfer of employees from GIC Re to any of the GIPSA member Company,
housing loan sanctioned to such employee and remaining outstanding on the date of
transfer should be reimbursed by the respective company together with interest upto the
date of transfer and the documents of securities executed should be endorsed in favour of
the Company.

k) In case PF and Gratuity entitlements exceed the outstanding loan amount, the LIC policies
assigned as collateral securities, may be reassigned to the concerned employee borrower
or the maturity proceeds may be refunded, as the case may be.

l) In case of maturity of the LIC Policy given as collateral security, the amount received by
way of term installment may be repaid to employee borrower instead of adjusting the
same against housing loan amount. However, in case the facility of paying “interest only”
is availed during the balance period of service without payment towards principle amount,
the maturity amount/interim payment of collateral security should be adjusted against the
outstanding housing loan.

m) Employees who have availed the housing loan for the property located in their place of
posting are generally not eligible for applying for either Corporation owned
accommodation or lease accommodation, in case an employee who is already occupying
either Corporation owned or lease accommodation, has availed housing loan for a
property located in the place of posting, he/she has to vacate the same as soon as the
property is taken possession. For this purpose the property acquired within the radius of
50 kms from the office where the employee is working will be reckoned to make this
clause applicable.

13. New Housing Loan / Transfer of Loan / Additional Loan

a) Employees intending to avail the Housing Loan (Scheme & Supplementary) shall
approach Housing Loan section and obtain application form to be forwarded to GIC HFL
by them. The preliminary documents to be submitted along with application are furnished
in the Annexure-1.

b) GICHFL shall approve the loan, subject to elegibility as per revised limits and repayment
capacity as also their laid down policies, to the employees of GIC Re and may also extend
additional loan based on the eligibility as assessed by the GIC HFL.

c) The Salary section of GIC Re make necessary deductions of monthly installment of loan
from salaries of employees. The monthly housing loan deduction of GIC HFL shall rank
“first” in preference after statutory deductions as referred in para 5(c).
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d) Loans granted by GICHFL in addition to the Scheme and Supplementary loan may be
repaid separately by the employees, as per the procedure of GICHFL.

e) In the event of EMI for Scheme / Supplementary / additional loan is not received for more
than one month, GICHFL will be at liberty to exercise its right as permitted by law to
recover the dues including the provisions of SARFAESI Act, 2002 (Securitisation and
Reconstruction of Financial Assets and Enforcement of Security Interest Act, 2002) .

f) Employees have to give an undertaking clearly stating that release of their terminal dues is
subject to clearance of dues of GICHFL.

g) The security documents for loan as well as standard loan documents executed between
GICHFL and employees of GIC Re shall be in the exclusive custody of GICHFL.

h) For processing and administering the loan, one-time fee of Rs.0.5% of the loan amount
subject to a maximum of Rs.10,000/- per proposal shall be borne by the applicant
provided there is only one property involved. This has to be paid to the GIC HFL along
with the housing loan application. However, these charges are not applicable to the loan
availed as per earlier Scheme where the employee is supposed to bear only fee of
Architect / valuer / legal opinion.

i) Loan document and stamp duty cost for creation of mortgage, if any, has to be separately
incurred by the applicant.

j) Employees will always enjoy a permanent variation of minus 0.25% from the applicable
rate of interest (GICHFL) irrespective of the Scheme opted by them.

k) Fractional interest due till final disbursement of loan or for the 1st fraction of month in
which the loan is disbursed will be borne directly by the employee and failure on the part
of employee to repay the same may be recovered through salary alongwith additional
interest.

l) Other benefits, scheme and terms and conditions including Life Insurance Cover from
Kotak-Mahindra (KLI) provided by GICHFL are available to employees.

m) This tie-up of loan with GIC HFL, HO, irrespective of the location of the property will be
handled by Mumbai Area Office of GIC HFL, located at “GIC Housing Finance Limited,
Universal Insurance building, 2nd floor, Sir. P.M. Road, Fort, Mumbai – 400 001” -
Phone: 022-22880801 / 22853868 / 22870630.

14. Housing Loan Scheme 2012 –Broad parameters

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(a)The housing loan portfolio of GIC Re is handled by the GIC Housing Finance Ltd. and all
new loans are processed and disbursed to the employees of GIC Re by GICHFL w.e.f. 24th
May 2011.

(b) In case of any additional loan or transfer of loan, the existing loan account will be
closed and the further processing and sanctioning upto the eligibility limit will be done by
the GICHFL only.

(c)The existing loan account of employees and its outstanding EMIs will be continued in the
books of GIC Re and serviced by the housing loan section of GIC Re, unless the
employee-borrower goes for loan on either existing property or for second property under
the revised limits.

(d) The conversion of Supplementary loan into Scheme loan as per the enhanced limits is
effective from 1st April 2011 for the existing loans availed under old scheme from GIC
Re.

(e)Housing loan availed through any financial institutions can be brought under the
provisions of the benefit of this Scheme w.e.f. 1st January, 2012, subject to this loan, if
eligible, is processed and taken over by the GICHFL.

(f) Partial Housing loan availed through GICHFL under the protection of pari passu charges,
with the collateral securities under the possession of GIC Re can be brought under the
provisions of the benefit of this Scheme w.e.f. 1st January, 2012, subject to the terms and
conditions and reworking of EMI by the GICHFL, which will be treated as additional loan
under earlier scheme for the purpose of interest rate and number of times loan availed.

(g) The second property loan for the consideration under this Scheme and provisions is
subject to the overall eligibility limit of individual employee as per their cadre. The
quantum of second property loan will be reckoned by reducing the loan already availed
under earlier housing loan scheme, either scheme or scheme & supplementary loan,
irrespective of whether the loan is outstanding or closed. Under any circumstances the
overall loan availed by an employee cannot exceed the eligible limit.

(h) The loan application will initially be processed by the Housing Loan section of GIC
Re as per the eligibility norms and the official documents required to be processed by the
GICHFL would be provided to the employee for producing the same to GICHFL for
further process.

(i) The differential interest beyond the Scheme provisions for Scheme and Supplementary
loan i.e. 5.00% p.a. and 7.50% p.a. respectively will be borne by the Corporation and
remitted to GICHFL alongwith the EMI deducted from the employee.

(j) The provisions of this scheme will be applicable to the loan availed under this scheme by
any employee during the period of his / her services in GIC Re, till he/she is under the roll
of GIC Re. Once he/she is transferred to any of the GIPSA member company, the
responsibility will be on the respective company and the employee only to take care of the
payment of installments to GICHFL. Thereafter, the consideration of paying difference of

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 General Insurance Corporation of India

interest beyond the eligible limit is not vested with the GIC Re. The GICHFL shall follow
up the loan account with the individual employee.

(k) Joint loan along with parent/(s) / spouse / son/s / daughter/s is permitted under the
scheme subject to the following conditions:

(i) The amount of loan under this para, entitled by Employee Borrower (EB) shall be
limited to the extent of the portion of joint loan sanctioned by GICHFL in the
name of EB on the basis of salary of employee borrower.

(OR)

(ii) In case the segregation of joint loan quantum in respect of EB is not specified by
GICHFL, then the eligible amount of loan is limited to the total joint loan
sanctioned by GICHFL divided by number of joint borrowers including EB.

However the quantum of loan is restricted to the eligibility limit of the employee
borrower.

(iii) The co-applicant / joint borrower has to give a Declaration-cum-Indemnity on

stamp paper as per Annexure-2.

--- --- --- --- --- ---

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 General Insurance Corporation of India

Annexure-1

Main documents to be submitted for obtaining sanction:

1. Three months‟ salary slips.

2. One year Bank Statement
3. Form – 16.
4. Employment verification form certified by the Corporation.
5. Appointment letter, confirmation letter and previous employement details, PF slip.

Other documents:

1. ID Proof – PAN card, Office identity card, Voter ID, Passport, Driving licence.
2. Address Proof – Ration card, Elecricity bill, Telephone bill, Bank statement, Letter issued
by employer stating residential address.
3. One / two sound guarantors – ID proof, Address proof, one month salary slip, Form-16
4. Any other collateral security like LIC / NSC etc.
5. Xerox copies of title deeds of the property.
6. Any other conditions imposed by the interviewing officer.

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 General Insurance Corporation of India

Annexure-2
DECLARATION-CUM-INDEMNITY

I, _________________________________________________, Indian Inhabitant presently

residing at
___________________________________________________________________________
____ _________________________________, solemnly declare and state as follows:-

1. I, say and declare that by an Agreement dated ____________, I and my husband/wife

_________________________________________ have agreed to purchase flat
No._________, on ____ th floor of the building _____________________, situated at
_____________________, ______________ on the terms and conditions mentioned
therein.
2. I say and declare that consideration for purchase of the said flat No.__________ shall
be paid by my husband/wife ___________ ______________________ only.
3. I say and declare that I am aware that my husband/wife __________
__________________ has applied for housing loan from his employer i.e. General
Insurance Corporation of India, Mumbai under the Housing Loan Scheme.
4. I say and declare that as per Housing Loan Scheme of the said General Insurance
Corporation of India, my husband/wife _____________ _______________ is required
to create charge on the said flat in favour of his/her employer or to register the said flat
in the records of the Society in joint names of my husband/wife
_________________________ and General Insurance Corporation of India, as may be
required.
5. I hereby give my express consent for creating charge in favour of the Corporation or to
register the said flat in the records of the Society in joint names of my husband/wife
____________________________ and General Insurance Corporation of India, if
called upon to my husband/wife.
6. I agree and undertake to executive any documents, papers, writing as and when called
upon by General Insurance Corporation of India required for creating charge or joint
registration as aforesaid.
7. In the consideration of the aforesaid, I hereby indemnify and keep indemnified and
keep harmless the said General Insurance Corporation of India and its offices for the
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 General Insurance Corporation of India

time being and from time to time and its successors and assigns against any claim,
demand, suit or other legal proceedings by any person claiming either lawfully and/or
equitably claiming through me.
8. I further declare and undertake to bear all the expenses, costs, charges in respect of
any such claim, demand, suit and/or other legal proceedings which may be filed by
other legal person either lawfully and/or equitably claiming through me.
9. I agree and undertake to cause to return the loan sanctioned to my husband/wife in
case of any breach of undertaking mentioned hereinabove.
10. I am conscious of the facts that on the basis of this Declaration-cum-Indemnity,
General Insurance Corporation of India will consider to grant loan to my husband/wife
_____________________________________________.
11. I further declare that I am executing the aforesaid Declaration-cum-Indemnity on my
free accord and without any force whatsoever and shall be binding to my legal heirs
also.

Solemnly declared at MUMBAI )

by the within named )

_______________________ )

____ day of __________2012 )

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