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Annexure 1

1. The ROI is subject to change from time to time, as notified in our website/ branch Notice Board. For
changes in the ROI, please refer the paragraph no. VIII (1) of Fair Practice Code enclosed. Interest will
be charged on daily diminishing balance and debited once in a month.
2. The ROI is subject to revision at periodical intervals based on the risk rating awarded by the branch
from time to time during the review.
3. Pre-EMI Interest (PEMI) at the applicable rate, shall be paid on the part disbursements availed, from
the respective date/s of disbursements, until the date of commencement of EMI.
4. The PEMI/EMIs shall be remitted on due dates either by ECS, Post-dated cheques, salary deductions or
remittance of cash at the branch. Whatever be the mode of remittance, borrower shall ensure that the
remittance is done within the due dates.
5. The delay in payment of PEMI/EMI attracts overdue/penal interest of 2% p.a compounded monthly on
the overdue amount for the delayed period only.
6. Changes, if any, in the terms and conditions of the loan other than rate of Interest will be made only
with prospective effect and the change will be notified. If such change is not acceptable to you then you
may pre-close the account within 60 days without paying any pre-payment/ pre-closure charges.
7. The loan shall be secured by First Mortgage of the immovable property purchased and/or constructed
with the loan granted from CFHL and personal guarantees as acceptable to CFHL, collateral security of
any other immovable property and /or such other security/ies as stipulated specifically by CFHL and
legal clearance by the panel Advocate of the Company.
8. All charges or expenses for creation of security in respect of this loan, in favour of CFHL shall be borne
by the borrower(s). You are required to pay processing fee, documentation charges, CERSAI, CIBIL,
Legal charges etc. as specified in chapter VIII (4) to (11) of FPC
9. You shall submit suitable salary recovery mandate to your employer wherever salary deduction facility
is available or ECS mandates to your bankers through CFHL for e-remittances (payments or receipts
through Electronic Clearing System (ECS/ NEFT/ RTGS) and provide not less than 10 Post-dated
cheques (PDCs). If ECS /NACH facility is not available at the centre, then you have to give 24 PDCs per
year at the time of execution of loan documents and thereafter, 12 PDCs each year.
10. The loan will be disbursed in lump sum or in suitable Instalments at your specific request/ authorisation
in writing and based on progress of construction/ as per the construction agreement with the builder or
as may be determined by CFHL. The Company will not accept any liability/ responsibility for any breach
in the contract on the part of builder or any deficiency in service/ quality of construction by the builder/
contractor.
11. The entire loan shall be availed within a stipulated period from the date of first disbursement of the
loan, the same is given below. The maximum period permitted for availing the loan is 3 months, in the
case of purchase, 18 months in case of construction/ Composite loans, 36 months in case of Flat under
construction. If not availed with in the specific period, unavailed portion of the loan automatically gets
lapsed/cancelled and CFHL reserves the right to modify/ change the EMI.
12. EMI for various loan products shall commence as outlined in point no. 6 (v) of the Most important terms
and conditions (MITC).
13. CFHL reserves the right to stop disbursement/ further disbursements at any time, at any stage, if the
Company notices that the information furnished by the borrower/s /guarantor/ employer/ of the
property is/are not correct or any diversion or misuse of the loan is observed at any stage or any
breach of covenants of the agreement are observed.
14. If the borrower fails to utilize the loan amount for the purpose for which it has been sanctioned and/or
makes any changes in execution of his project, CFHL reserves the right to recall the liability at its sole
discretion and levy penalties and or/ initiate appropriate legal proceedings.
15. You shall inform CFHL, in writing, about any change in the information furnished to CFHL for getting the
loan sanctioned and also regarding change in mobile no., change/ loss of job, business, profession (as
the case may be) immediately you shall also furnish a statement of your income every year and such
other information/documents whenever called for by CFHL.

16. In case of Composite Loan the following Conditions

1) Composite Loans – Rate of interest as applicable to site loan will be charged with retrospective
effect, if the construction does not start within 18 months/ 36 months and borrower has not fully
availed the loan sanctioned. In the case of Composite loans, though the rate of interest applicable
to Housing loans is charged, EMI/PEMI shall be stipulated at the rate applicable to site loans from
the beginning on the amount disbursed for purchase of site. If, the customer avails the balance of
loan for construction of the house, EMI shall be re-fixed after full disbursement of the loan as
applicable to housing loans. The amount paid in excess in the initial stage shall be treated as
advance payment or instalment shall be re-fixed for the balance amount for the balance period. If
the customer fails to avail the loan and construct the house, the loan shall be converted into a site
loan immediately after completion of 18 months. The differential interest shall be debited to the
account without changing the EMI.
2) In case the loan is pre closed before availing the construction loan, then also site loan ROI will be
charged from the date of first disbursement.

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17. This sanction is based on your confirmation:
(a) That the information furnished in the loan application and the enclosed documents are all genuine,
true and correct and there is no misrepresentation of facts in any manner.
(b) That the property intended to be mortgaged by you in favour of CFHL has a valid, clear and
marketable title and that you have taken independent legal opinion/ advises regarding the same to
satisfy yourselves about genuiness of the documents/ KYC norms for all the previous vendors of
the property/ builder/as the case may be.
(c) that the plan of lay-out/ house/apartment is duly approved from the appropriate competent
authorities and you have ensured adherence to the same and to that effect you have to execute
an affidavit as per NHB guidelines.
(d) all other civic approvals, permissions, licenses are obtained as per prevailing local/ state or other
laws in force from time to time and will be obtained whenever necessary.

18. This sanction letter shall be revoked/ cancelled/ treated as absolutely null and void if;

(a) There are any material changes in the proposal

(b) Any material fact concerning your income or ability to repay, or any other relevant aspect of
your proposal or your application for loan is withheld, suppressed, concealed or not made known
to us;
(c) Any statement made in the loan application is found to be incorrect or untrue;
(d) The terms and conditions of the sanction letter (Acceptance Note) are not accepted in writing by you
within 30 days from the date of this letter.

19. Copy of the loan documents along with relevant enclosures will be made available at the specific
request of the borrower after completion of all documentation formalities.

20. This loan sanction letter is sent in duplicate along with a copy of Fair Practices Code (FPC) and Most
Important Terms & Conditions (MITC) for your reference and records. If the terms and conditions of this
sanction letter and FPC, are acceptable to you, kindly sign the `Acceptance Note' ( marked below) in
token of your acceptance and return the duplicate copy of this sanction letter within 30 days from the
date of this letter to us , together with a Cheque/Demand Draft, marked `Payees Account Only' for
`Rs.____________.in favour of CANFIN HOMES LTD, towards balance processing charges.

Branch In Charge

Encl: Fair Practices Code (FPC) and Most Important Terms and Conditions (MITC) – containing all
other conditions

Registered Office: No. 29/1, Sir. M N Krishna Rao Road, Lalbagh West, Bangalore, Karnataka.
CIN: L8511OKA1987PLC008699 Phone: 080-26570155 Website: www.canfinhomes.com