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Earnest Money Deposit (EMD) Scheme


Earnest Money Deposit Loan Scheme provides clean loan to eligible persons, who bid for purchase of house/flat offered by Urban Development Authorities like CIDCO/HUDCO/DDA/State Government Housing Development Projects etc.

  1. Product

    Earnest Money Deposit (EMD) Scheme

  2. Eligibility

    All persons fulfilling UDA eligibility criteria (Minors are not eligible)

  3. Types of advance

    Demand/Term Loan maximum for 12 months

  4. Purpose

    Short Term Loan to finance payment of Earnest Money Deposit for allotment of plots/flats for those who apply for plots/flats under scheme of Urban Development Authority (UDA).

  5. Loan amount

    Maximum Loan amount Rs.10.00 Lacs

  6. Quantum of Advance Margin

    For Salaried : 12 times of gross monthly emoluments based on salary slip/Form-16/ I.T.Return
    For Others:Annual income for one year based on I.T.Return for last F.Y.

  7. Margin      10 %

  8. Rate of Interest (Floating Rate of Interest p.a. at monthly rests)


  9. Repayment

    1. If allotted, loan can be considered under Star Home Loan Scheme, subject to Bank’s norms and loan amount of EMD can be adjusted against Home loan to be sanctioned;

    2. In case allottee is not sanctioned a Housing Loan or is not interested in Bank’s loan the advance will have to be repaid in 12 equated monthly instalments including up to date interest. ROI in such case will be @ 5.00% above Base Rate;

    3. If not allotted, the refund amount will be appropriated towards repayment of loan, and upto date interest.

    4. Interest amount exceeding upfront amount paid, to be paid separately.

  10. Processing/Handling charges

    One time Rs.500 per application

  11. Third Party Guarantee (TPG)

    Third Party Guarantee of a person acceptable to the bank including that of close relative to be submitted.

For further information please contact nearest Branch of the Bank. Loan at the sole discretion of Bank of India.

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