Housing Loan for West Bengal Govt. Employee



As per Finance Memo No. 2620-FB dated 27.12.2010 the interest rate of United Bank of India is shown below:

Sl. No.PeriodRate
1Up to 5 Years.9.00% p.a.
2Above 5 Years to 15 Years.10.00% p.a.
3Above 15 Years to 20 Years.10.75% p.a.


The interest shall be applicable at fixed rate under this arrangement. The actual rate to be applied shall remain valid for one/ two years.The interest shall be calculated as per usual bank’s norms. The rates shall be applicable to all loans sanctioned during the year and fixed throughout the repayment period of such loans.

  • The loan outstanding will be covered by SBI Life/ TATA AIG for the employee’s (loanee) life/ life TPD (Total and Permanent Disability). The one time premium will be given as loan with amount of housing loan.
  • Quantum of premium under premium (one time) under SBI Life/ TATA AIG for the employee’s (loanee) life will be intimated by the concerned Bank branch.
  • The property shall be insured under United Insurance Company Ltd./ Bajaj Allianz Insurance Company Ltd by the employee against the risks of fire/ earthquake/ flood/ riot/ war etc. miscellaneous perils. The payment of premium (one time) for property insurance may be made from the loan account.

Mortgage/ Security:

  • The property being financed by the bank shall be placed under equitable mortgage by deposit of title deeds with the bank. Agreement deed for purchase of flat under construction, in original, shall be deposited to the bank before receiving loan.
  • Second charge mortgage over the property may be executed by a Tripartite agreement for obtaining of 2nd charge over the property as per prescribed format.
  • Registered mortgage over the property may be made in all cases where considered necessary by the sanctioning authority in consultation with State Government (Head of the Department/ Controlling Officer, if necessary, with the concurrence of Finance Department).
  • The Bank will obtain a search report by an advocate empaneled with the bank to the effect that the title is clear and valid and that equitable mortgage can be created. The panel advocate shall examine the documents of the property and furnish the search report. The charges will be borne by the employee concerned. No other processing fees will be payable by the employee.
  • Wherever creation of equitable mortgage is likely to be delayed, suitable third party guarantee or collaterals may be accepted by the bank besides obtaining an agreement to create mortgage. The mortgage should subsequently be created at the earliest.