HNB Shanthi - a cool home loan Here are some Excerpts from an interview with R M P Dayawansa, Assistant General Manager - Personal Financial Services of Hatton National Bank, an authority in the sphere of banking, marketing and business administration
HNB as an illustrious private bank has many "firsts to its credit" may I know the pioneering role played by HNB in the provision of Home Loans dubbed "peace of mind”?
A. HNB from its inception continued to collate a number of firsts into its product portfolio, including the country's first housing finance scheme, Shanthi, that has disbursed LKR 50 Billion to date.
What could a Shanthi Home loan be obtained for?
Purchase of bare land for construction of a house; Purchase of a house and property or apartment; Construction of a house on land owned by the borrower; Completion of a partly constructed house or Renovation or extension of an existing house; pay off an existing home loan obtained from another bank.
HNB offers its customers very attractive and competitive, fixed or floating interest rates with the flexibility to best suit your needs. Opt for floating interest rates and your interest payment will be based on the going market rate which is subject to a quarterly review.
Who can apply for a Shanthi Home Loan?
Those with a regular monthly income, individually or jointly with spouse; Public and private sector employees, professionals, businessmen or businesswomen and Sri Lankans employed abroad. Joint loan facilities are also available for parents and their sons and daughters above 18 years of age.
What is the loan repayment period?
Loan repayment periods range from a minimum of 5 years to a maximum of 25 years, depending on the age of the proposed borrower and place of employment (Sri Lanka or abroad).
What are the benefits of Shanthi Home Loans?
Attractive fixed or floating interest rates; flexible repayment up to 25 years; loan approval within 10 days; grace period of up to 12 months available during construction; loans in Sri Lanka rupees as well as foreign currencies; mortgage protection cover and fire insurance at competitive premium; the unique step-up loan repayment scheme; professional service; the convenience of service at a HNB Customer Centre in your neighborhood and joint loan facilities for family members.
How to apply for a Shanthi Home Loan?
Fill in an HNB Shanthi Home Loan application form and hand it over to any of our HNB Customer Centers Island wide. Then relax and leave it to SHANTHI and HNB to build or purchase your dream home in the shortest possible time. For fast processing of your application, ensure that you provide the documents to be submitted along with the application
What are the basic documents required for fast processing of the application?
Letter from employer confirming present salary and any other fixed allowances. If the applicant is employed abroad, documents such as - photocopies of the employment contracts; letter confirming extension of the contract to cover the loan period of 05 years; photocopies of the passport and visa documents, are also needed.
These documents have to be followed with the original title deeds for 25 years (certified copies may be required in the absence of originals); certified extracts of the property concerned for a period of 30 years (to be obtained not less than one month from the date of application).
Survey plan referred to in the Deed which is duly approved by the Local Authority. If this is more than 10 years old, a new survey plan, duly connected to the former plan, is required; street line and building line certificates; non-vesting certificate (issued within the last three months); certificate of ownership (from the date of application) and receipts for proof of payment of rates (if required)
Valuation Report of the property to be mortgaged from a valuer in the Bank's Panel of Valuers (This will be arranged by the bank and expenses should be borne by the applicant)
What are the other documents needed in case the loan is to buy a property?
Original of the Agreement to sell, duly registered in the Land Registry or Letter of Consent from the seller to sell the property to the applicant; if the property consists of a building, the Approved Building Plan and Certificate of Conformity and in case the loan is for construction purposes, the Approved Building Plan.
What are the documents needed in case the loan is for construction of a house?
Building plan approved by the Local Authority with a copy. If approval is not required, a letter issued by the Local Authority to this effect.
Bill of Quantities acceptable to the Bank (two copies) for the proposed construction;
What do you mean by the Shanthi Foreign Currency Housing Loan?
HNB introduces the Shanthi Foreign Currency Housing Loan, exclusively for Sri Lankans Employed Abroad. Now you can start constructing your home in Sri Lanka while residing overseas. Shanthi Foreign Currency Housing Loans can be obtained in designated currencies as applicable to NRFC Accounts, including US Dollars, Sterling Pounds, Euro, Japanese Yen, Swiss Franc, Australian Dollars and Canadian Dollars to name a few. Prospective applicants could appoint their representative to carry out the documentation through a Power of Attorney.
Is there a possibility for Sri Lankans Employed abroad to borrow in Sri Lankan rupees?
Sri Lankans employed abroad have a choice to opt for Home loans in Sri Lankan rupee or any other designated currencies as applicable to NRFC Accounts. However, the repayment of the loan will have to be thru' a NRFC account for both options. In case of Sri Lankan Rupee loans, standing order is obtained to transfer a fixed sum of Foreign Currency from the NRFC account on a monthly basis to meet the monthly commitment.