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DFCC
Vardhana Bank introduces Customer Friendly Mortgage Loans
DFCC Vardhana Bank (DVB), the everyday banking unit of DFCC Bank,
the shining star of development banking, recently announced a new
product intended to positively impact consumers - Mortgage Loans.
Launched in response to the need to better cater to DVB customers
in the property market, which is one area in Sri Lanka today that
is appreciating, the bank is introducing this new mortgage product
with a view to help its customers become home owners, with a minimum
of hassle.
Meanwhile, it is expected that the new Mortgage Loan product will
increase consumer acquisition for the bank as DVB will now be able
to access a whole new consumer niche. In addition, as a direct benefit
to DVB, this product proves to be one that increases the bank’s
asset portfolio with a relatively low risk asset product, especially
as the default rate is low on home mortgage related loans.
In a bid to maximise the high level features and functionality of
the product to customers,
DVB has attached several conditions to the offering of Mortgage
Loan products. (See box).
-
Loans will only be granted for housed construction, renovation,
and/or house/apartment purchases
- Mortgage
Loan products on offer at present are restricted to a minimum
of Rs. 1 million and a maximum of Rs. 20 million
-
DVB will provide financing for up to 80% of market value or purchase
price (whichever is lower)
- Several
flexible re-payment options are provided
- The
loan can be settled over a maximum period of 15 years or until
the borrower reaches the age of 55, whichever occurs first
- Early
settlement may be accommodated for a flat fee (under certain conditions)
- DVB
provides added freedom by allowing both spouses apply jointly
as long as at least one applicant is a salaried employee or self-employed
- The
mortgage loan will be granted only if the customer maintains demand
deposit accounts with DVB and arrangements are made to route the
salary/income through that account
However, to facilitate the Mortgage Loans approval process, DVB
is encouraging its customers to make available a few documents to
facilitate the process including a letter from the employer as well
as other documents stated in the Application Form.
In addition, customers will be required to register their primary
mortgage in favour of DVB, or both mortgages in the case of a secondary
mortgage. There must also be furnished clear title/ownership to
the property as well as a Life Assurance/Mortgage Protection Policy
and annual fire policies to be taken out by mortgage loan applicant
with DVB as the beneficiary.
According to DFCC Vardhana Bank’s Managing Director, Mr. L.G.
Perera, the mortgage loans product is part of the bank’s ongoing
customer centric philosophy of always providing new and better services
for their customers. “The new Mortgage Loan product will be
opening up a new sphere of possibility for customers to improve
their lives by becoming homeowners, which is one of the few ways
in which assets may be retained with its full value intact from
one generation to the next,” he said.
Box
Features
*Loans will only be granted
for housed construction, renovation, and/or house/apartment purchases
* Mortgage Loan products on
offer at present are restricted to a minimum of Rs. 1 million and
a maximum of Rs. 20 million
* DVB will provide financing
for up to 80% of market value or purchase price (whichever is lower)
* Several flexible re-payment
options are provided
* The loan can be settled over
a maximum period of 15 years or until the borrower reaches the age
of 55, whichever occurs first
* Early settlement may be accommodated
for a flat fee (under certain conditions)
* DVB provides added freedom
by allowing both spouses apply jointly as long as at least one applicant
is a salaried employee or self-employed
* The mortgage loan will be
granted only if the customer maintains demand deposit accounts with
DVB and arrangements are made to route the salary/income through
that account
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