Policy On Valuation & Appointment of Valuers

MANAPPURAM HOME FINANCE LIMITED
CIRCULAR NO –
(As on 20thApril 2020)
Consolidated Policy on valuation & Appointment of Valuers
Process for any modification/revision Sign off by Board of Directors will

be required for any modification/revision
Page 1 of
May
TABLE OF CONTENT
Table of Contents……………………………………………………………………………………………..2
Preface……………………………………………………………………………………………………………..3
Valuation Defined……………………………………………………………………………………………..3
Methods of Valuation……………………………………………………………………………………….4
Measure of Area……………………………………………………………………………………………….5
Parts/Components of Building…………………………………………………………………………..5
Types of Construction………………………………………………………………………………………..7
Development Plan……………………………………………………………………………………………..7
Competent Authorities in India………………………………………………………………………….8
Vendor Empanelment Guidelines and Criteria…………………………………………………...8
GEO – Limit Definition………………………………………………………………………………………12
Technical Appraisal….……………………………………………………………………………………….13
Caution Properties……………………………………………………………………………………………17
Factors Governing Acceptability of Properties…………………………………………………18
Document Requirement………………………………………………………………………………….20
Additional guidelines for various transactions…………………………………………………20
Note for spoke location.............………………………………………………………………………24
APF Process and Guidelines........................................................………………………25
Guidelines for funding Gram Panchayat properties....……………………………………..28
Role of technical Manager...................................................................................29
Blacklisted valuers……………………………………………………………………………………………30
Annexure 1: Application format for APF..............................................................33
Annexure 2: Required document List for APF......................................................36
Annexure 3: BM recommendation format for APF..............................................37
Annexure 4: APF letter format.............................................................................40
Annexure 5:Format of Valuation Empanelment Letter…………………………………….42
Annexure 6: Points to be covered in Valuation Report…………………………………….46
Annexure 7: Vendor empanelment checklist................…………………………………….50
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PREFACE
Technical Function is the core and important function of Home Finance Industry. In most
of the housing loans, property being financed is the primary security being offered and hence
it becomes imperative for the lender to ensure that the same has the stability and
marketability under normal circumstance throughout the tenure of the loan. This involves
appraisal and analysis of the property and related documents for determining the amount and
tenure of the loan. The legally clear title & valuation of the property form a critical part of the
secured portfolio.
Any property being sought as collateral by the Company needs to undergo Legal and
valuation verification. Land being a state subject, Land Laws vary from State to State, whereas
every Municipal body prepares its own bye-laws based on the broader guideline from the
State Government & National Building Code (NBC). The bye laws are approved by the state
government. Hence the local knowledge is very critical.
In the Legal verification process, the lawyer verifies the chain of ownership documents, checks
the revenue record of right, conducts the search at sub- registrar office and certifies the title.
The scope of this technical valuation manual is to devise uniform process and
specification for carrying out the technical appraisal of the properties and empanelment of
technical agencies
The Technical Valuation verification is a two-stage

process
Stage 1: The Valuation agency checks the approval documents with reference to the local
bye- laws/town planning regulations.
Stage 2: The valuation agency undertakes physical inspection of the property; carries out
site measurement, verifies the boundaries with sale deed/ ownership document, takes note on
occupant usage, quality, specifications etc.
The site inspection helps in arriving at the judgment on the fair market value of the
property. In the valuation process, following aspects are very important
1. Identification of the
property.
2. Valuation of the
property.
Any ignorance/mistake in these aspects may lead to wrong valuations of the property, which
may jeopardize the security cover for the loan.
Valuation manual shall be laying broader processes & guidelines about various aspects related
to the valuations of the property such as, process for valuation, guidelines for valuation,
appointment of valuation agency, commercial real estate etc.
In the mortgage lending business wherever a property is sought as collateral, various general
terms are used during property appraisal. The definitions of these terminologies are
provided in the manual for better understanding.
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A.
Valuation:
The International Assets Valuation Standard Committee defines Market

Values as:
‘’Market value is the estimated amount for which a property should exchange on the
date of valuation between a willing buyer & a willing seller in an arms-length transaction
after proper marketing wherein the parties had acted knowledgeably, prudently & without
compulsion’’.
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Various types of values associated with the properties are as
follows.
Fair market Value: The value that an asset can fetch when liquidated in the open market at real
time between a willing seller and a willing buyer involved in the transaction.
Distress Value: As the name suggests the property under stress such as financial, ownership,
court cases etc. when sold fetches a price lower than the prevailing market value. This
value is called Distress value of the property.
Net Realizable Value: Net realizable value (NRV) is the value of an asset that can be realized
upon the sale of the asset, less a reasonable estimate of the costs associated with either the
eventual sale or the disposal of the asset in question.
B. Methods of valuation for immovable

properties:
1. Comparison Method
In this method the prices of the similar properties sold in the market are checked, they are
adjusted for differences (like age, amenities, view, upkeep of the property) in compared
properties for determining the value of the property. While comparing, the base units shall be
the same for all the properties i.e. areas should either be carpet areas or built up areas or super
built up areas.
This method of valuation is also recommended by Indian Banking Association. The same
method shall be largely used by MAHOFIN.
2. Income approach to valuation
The term ‘’Income approach to valuation’’ suggests that the income from the property forms
the basis for value of the property. In simple terms the income from a property is considered
as yield (Market related rate of return) on the capital invested in purchasing the property.
This method is used to crosscheck the value arrived by method of comparison for income
producing real estate or in cases where appropriate comparison data is not available.
3. Summation or Cost method

This method is used for self-occupied/ bungalow properties or non-income yielding properties
such as schools, colleges, hospitals, industrial sheds, warehouses or properties belonging to
religious trusts.
This method is used for properties, which do not follow a uniform pattern. Valuation by
Land & building method is an example of this method; the value of land & the
depreciated cost of construction are added to determine the total value of the property. This
method is also useful in Project finance & self-construction cases where the valuations
changes with the progress of construction.
4. Development or Residual Method of Valuation
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This method is used to access the Market value of land, or land and building where there is
potential for the land to be put to a higher value use.
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The method is sometimes known as the ‘development method’. Development in this context
refers to the highest and best use, in terms of value, that is physically possible, legally
permissible and economically viable. The economic factors that can cause a change in land use
will usually also cause a change in land values. This method ignores the time required to
complete the improvements (structures/ building).
Therefore, in markets such as India, where risk associated with property investments results in
the applicable discount rate being relatively high, arriving at Market Value through a residual
method may not be appropriate. Land should be valued by direct sales comparison where
there is sufficient market evidence of land sales in similar locations for similar purposes. The
residual method can be used as a Check-measure in these cases.
Where there is no comparable sales data, the residual method can be used to arrive at a figure
that would represent the Market Value of the land, given the specific assumptions
applied when preparing the valuation. However, any variation to the assumptions, such as a
change in permitted density or zoning, will after the opinion of Market Value, and hence
residual method is often not accepted by banks and state authorities.
C. Measure of
Area:
1. Carpet Area
It is the net usable area of a Property; this area is measured wall to wall inside the property.
This is an area which can be carpeted hence called Carpet area. As per RERA, carpet area will
also include the area covered by the internal partition wall of the Property.
2. Built up area
It is the area covered by the property including the wall thickness. This area of the
property is measured from outside. The thickness of the wall is included in considering the
dimensions of the structure. The Built-up Area would generally be 12% - 15% above the
Carpet Area. This may be different to independent houses/bungalows.
3. Super built up area/Saleable area
Saleable area of the property is calculated by adding the proportionate share of common area
like staircase common passage, terrace, garden, club house and other recreational facilities.
4. Floor Area ration (FAR)/ floor space index (FSI)
The ratio of the total Built-up area of property to the gross area of the plot, on which the
property is constructed, is known as Floor Area Ratio. It is also known as Floor Space Index. For
example, a floor space index (FSI)/ Floor Area ratio (FAR) OF 2.0 would indicate that the total
floor area of a building could be up to 2 times the gross area of the plot on which it is
located. It is defined by the Development Authority based on Development Control Norms.
FAR/FSI = Total Covered Area on All Floors/ Plot
Area
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D. Parts/Components of
Building:
1. Foundation
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May
This is a supporting portion of the structure that transfer weight of the building, furniture,
fixtures (dead load) and occupants (live/ movable load) to the strata below. Variety of
foundations are constructed based on the soil conditions, number of stories/ parking/
basements etc. some of those are
1. Thick walls of rubble masonry are constructed for load bearing structure, these
types of foundation are
a) Open foundation: For open foundation soft soil is excavated till hard base is hits these
types of foundations are used in bungalows, low rise buildings.
b) Pile Foundation: In coastal areas or the in soft soil conditions Pile foundations are used.
Bores of requisite diameter are dug to reach the rock below, thereafter the RCC piles are Casted
& footing are casted on top of the piles.
2. Reinforced Cement Concrete (RCC):Sand, stone aggregates & cement mixed with
water is called concrete. Concrete placed in and around cage of steel roads is
called Reinforced Cement Concrete.
3. Form work: Forms or melds are receptacles in which concrete is placed to get the
desired shape when hardened. Forms are removed when concrete develops adequate
strength.
4. Slab:Slabis a flat RCC member of a building that provides the base for the floor or
roofing material and transmits the dead load (furniture) & live load (human).
5. Beam Beam is a horizontal structural member below slab carrying slab load from
one support to another.
6. Column: This is a vertical structural member carrying load from beams & transmitting
it to foundation below ground level.
7. Basement/Cellar: The floor of the building Constructed below or partly below the
ground level.
8. Ground level: It is the level of the existing nearest constructed road. Competent
authority may decide existing ground level or High Flood Level, whichever is higher as
existing ground level.
9. Stilt: A hallow ground floor left for the building parking or other utilities is called stilt floor.
10. Plinth: Plinth means the portion of the external wall between the ground level and the
floor level of ground floor.
11. Mezzanine Floor: It is an intermediate floor between two floors above ground
level accessible only from the lower floor. The height of the mezzanine floor is generally
restricted to 7/8 ft. as it is meant for storage/ utility services.
12. Refuge Area: Refuge Area is the area between two floor which is left open without
internal walls for the complying with fire safety norms.
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13. Parapet: It means a low height wall or railing built along the edge of roof of the
Building for safety purposes.
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14. Building Line: The local municipal/town planning authorities measures the Building set
back from the boundaries to the face of the column casted closest to it. The line drawn
from the column face parallel to the boundary is called Building line.
E. Types of
Construction
1. Load Bearing Construction – Dead load (Building, furniture & Fixtures) & Live Load
(Living Person) of the building is transmitted through the walls and foundation to
the soil/rock below, mostly prevalent in smaller cities, towns & villages for low-rise
Buildings.
Features of Load Bearing Construction:
 Cost of construction is lower

 Skilled labour requirement is lower
 Structures are restricted up to 2 floors
2. RCC Construction – Dead load (building, furniture & fixtures) and live load of the
building is transmitted through RCC members i.e. slabs, beams, columns & foundation
to the soil/rock beneath, this method is used for construction of multi-storied building.
Feature of RCC structures
• Cost is higher
• Skilled labour and machinery required for construction.
F. Development
Plan
For every city/town, the town-planning department prepares a plan earmarking

various development zones within Municipal limits and outside Municipal limits, which is
approved by the state Government and then implemented. The development plan shows
various zones in different colours.
Following are the types of

zones:
 Green Zone – Only agricultural activities are permitted.
 Residential Zone – Agricultural land can be converted for residential construction
purposes.
 Residential cum Commercial Zone – Agricultural land can be converted for residential
&
commercial construction
purposes.
 Commercial Zone – Construction of only commercial buildings permitted.
 Industrial Zone – Construction of only Industrial activities permitted.
 CRZ I – Coastal Regulatory Zone – No new construction shall be permitted within
500mtr. Of the high tide line. No construction between low tide line and high tide line.
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 CRZ II – The area up to 200 mtr. from high tide line is to be earmarked as ‘’No
Development Zone’’. No construction shall be permitted within this zone except for
repairs of existing structure not exceeding existing FSI.
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G. Competent Authorities in
India
The body appointed by the government to look after the administration of an area/district
city/state is called as a competent Authority. It has the right to approve & control the land
development proposals under its jurisdiction. Depending on the various parameters following
are the competent authorities prevalent in India:
 Town Planning Department

 Metropolitan (Regional) Development Authorities
 Municipal Corporations
 Municipal councils/Municipalities
 Town Panchayats
 Revenue Authorities
 Tehsildar
 Special Authorities
 Gram Panchayats/Gram Sevaks
H. Vendor Empanelment-Guidelines and

Criteria
Objectiv
e
 To come up with a standardized process for appointment of a Service Provider
 To define the role of each service provider
 To identify & analyse risks associated with outsourcing and take informed decisions
through a tiered approval system.
 To monitor relationship of the Service Providers through reviews and monitoring
compliance
in line with the outsourcing
policies
Vendor Activities
Technical Valuation / Asset Valuation To ensure that external & internal asset
condition is as per MAHOFIN norms.
Provide the residual age of the assets.
Provide estimated market valuation of the
assets. Verify that collateral is constructed as
per sanction plan and is identifiable.
Membership Norm for Technical

Valuer
It shall be necessary that every Valuer empanelled by MAHOFIN to be a member of any one of
the under mentioned associations namely:
 Registration under Section 34AB of the
 Institution of Valuers (IOV)
 Institution of Surveyors (Valuation Branch) (IOS)
 Institution of Government Approved Valuers (IGAV)
 Practicing Valuers Association of India (PVAI)
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 Centre for Valuation Studies, Research and Training (CVSRT)
 Royal Institute of Chartered Surveyors, India Chapter (RICS)
 American Society of Appraisers, JSA (ASA)
 Appraisal Institute, USA (AI)
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Important Note for Technical Valuer:For NPA account/ SARFAESI case – Registered valuation
license from government or recognised accredited authority.
Empanelment Parameters
Norm Description
Minimum Age 25 years
Application/Request Valuer should give request for empanelment along-with Profile on letter head
Letter
Educational Bachelor’s degree in Civil Engineering / Architecture / Town Planning
Qualification or equivalent
Experience Minimum 3 years of work experience in the field of valuation.
Set-Up Should have a professional set-up for the execution of the required activity
Association/ Should have been providing servicing to at least 3 Banks/ FI operating in
Empanelment the similar line of business for which the required is being raised
PAN Card Mandatory
GST Number Mandatory to have a GST Number only if applicable
References Vendors need to submit at least 3 reference letters and banks/FI need to
verify the quality of services provided by the vendor
CIBIL Mandatory and should be positive, CIBIL Score to be above 600.
FCU Check of Mandatory & should be positive
Profile and Documents
Other Norms In addition to the above, the other conditions to be fulfilled by the
vendor/
service provider
The vendor forbe
should empanelment are as under
a citizen of India
The vendor has not been removed / dismissed from service
(previous employment)
The vendor has not been convicted of any offence and sentenced to a term
of imprisonment
The vendor is not an un-discharged insolvent
The vendor has not been convicted of an offence connected with
any proceeding under the income TAX Act 1961, or Gift Tax Act 1958
There are no criminal or civil cases pending or registered against the vendor
in any court
KYC Documents KYC documents as per existing KYC Policy of MAHOFIN
Deviation Any deviation from above mentioned norms to be approved by Head
– Creditor Head – Mahila Loans
Membership Norm Institution of Valuers (IOV)
It shall be necessary Institution of Surveyors (Valuation Branch) (IOS)
that every Valuer Institution of Government Approved Valuers (IGAV)
empanelled by Practicing Valuers Association of India (PVAI)
MAHOFIN to be a
Centre for Valuation Studies, Research and Training (CVSRT)
member of any one
Royal Institute of Chartered Surveyors, India Chapter (RICS)
of the
mentioned American Society of Appraisers, JSA (ASA)
associations namely: Appraisal Institute, USA (AI)
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Qualification Work Experience Remark
Bachelor’s degree in Civil Engineering / 3 Year’s work experience in
Architecture / Town Planning or the field of valuation after
equivalent. completing on of the degree
or equivalent
Bachelor’s degree in Civil Engineering / 2 Year’s work experience in

Architecture / Town Planning or the field of valuation after
equivalent with pass in valuation completing the examination
Examination conducted by the
Institution of Surveyors, India
(Valuation Branch)
Master’s degree in Valuation 2 Year’s work experience in

by a recognized University in India the field of valuation after
completing the examination
Bachelor’s degree in Civil Engineering / 2 Year’s work experience in Since the process of
Architecture / Town Planning or the field of valuation after procurement of
equivalent with pass in Examinations completing the examination membership with these
conducted by the Royal Institute of organizations includes
Chartered Surveyors (RICS) OR training as an integral
American Society of Appraisers (ASA) or component, no further
Appraisal Institute (AI), USA experience requirement
is being prescribed.
Standard Letter of Empanelment – Technical

Vendors
The terms and conditions governing the contract between MAHOFIN and the service provider
are to be carefully defined in empanelment letter (as mentioned in the annexure) Any
changes to the attached letter are to be vetted by internal legal team on their legal effect and
enforceability. Every such letter should address the risks, mitigation, strategies identified at
the risk evaluation and due diligence stages. The empanelment letter should be sufficiently
flexible to allow the MAHOFIN to retain an appropriate level of control over the outsourced
agency and the right to intervene with appropriate measures to meet legal and regulatory
obligations. The letter should also bring out the nature of legal relationship between the parties
– i.e. whether agent, principal or otherwise.
The key provision of the empanelment letter should indicatively cover the below and
will be approved as per MAHOFIN Legal Department from time to time:
 It should clearly define the scope and activities that are going to be outsourced
including appropriate service and performance standards.
 The services to be provided by service Provider and the facilities to be provided by
the
MAHOFIN should be clearly
defined.
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 MAHOFIN must have the ability to access all books, records and information relevant to
the outsourced activity in the service provider
 It should provide for continuous monitoring and assessment by MAHOFIN of the
service provider so that necessary corrective measure can be taken immediately.
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 A termination clause and minimum period to execute a termination provision, if
deemed necessary, should be included.
 Controls to ensure customer data confidentially and service providers liability in case
of
breach of security and leakage of confidential customer related
information.
 An undertaking should be obtained from the outsourced agency to ensure
complete confidentiality of all data/ information provided to them. The agency
will under no circumstances make use of the data for any other purpose except with
the approval of the MAHOFIN.
 Contingency plans to ensure business continuity
 It should provide for the approval by MAHOFIN for the use of subcontractors by the
service provider for all or part of an outsourced activity
 It should provide the MAHOFIN with the right to conduct audits, on the service
provider whether by its internal or external auditors, or by agents appointed to act on
its behalf and to obtain copies of any audit or review reports and finding made on the
service provider in conjunction with the serviced performed for the MAHOFIN.
 It should include clauses to allow the regulatory authorities or persons authorized by it
to
access the MAHOFIN’s documents, record of transactions, and other necessary
information given to, stored in or processed by the service provider within a
reasonable time. The empanelment letter should further provide that in the event
these are not made accessible to regulatory authorities within a reasonable time,
MAHOFIN reserves its right to recover from the service provider the supervisory
fee/penalty, if any, to be paid to regulatory authority by MAHOFIN.
 It should also include a clause to recognize the right of the regulatory authority to cause
an
inspection to be made of a service provider of MAHOFIN and its books and account by
one or more of its officers or employees or other persons.
 Terms of payment, taxes, levies and other charges if any should be clearly defined.
 Liability and Indemnification should also be clearly defined.
 Any other clause as advised by the MAHOFIN’s Legal Team.
Following aspects are to be well defined in the Empanelment

Letter
 Activities covered under the scope of the empanelment letter.

 Services and key deliverables
 Timelines to complete the activity (TAT)
 Skills and Expertise requirement
 Log Management
 Escalation Matrix
 Response & Resolution to problem solving and severity
 Penalty in case of failure
 Confidentiality and security
 Fee structure with OGL Limit
 Termination clause
 TAT for submission of the report
Initiation and Receipt of Valuation report/Appointment of Technical Vendors

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1. Only Credit Manager/officer and technical manager are authorized to interact with
technical vendors for initiation of valuation report. Any further interaction with vendor
with respect to
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May
query resolution will also be done by credit staff only. Sales will assist only in
collection of documents from customer.
2. In exceptional cases where there is no credit manager, operational person will
initiate valuation report.
3. Branch Credit will provide resolution of clarification query after speaking with customer
and
any other concerned person.
4. For appointment of new technical vendors, only Credit Manager/officer and/or
technical manager will meet such prospective vendors. All process of technical vendor
appointment and recommendation to be done by branch credit and regional credit in
association with local/regional/HO technical manager.
5. Branch credit/Technical Manager to interact with vendors for billing purpose. Bills
to be checked locally for any correction and to be put up to technical manager at HO for
necessary approval.
Initiation of Valuation Report to vendor
Particulars To be Triggered OTC Responsibility Verified by

Technical AfterSanction, No CPA/Credit BCM/Br. OPS
Report (Except and in exception Manager/Technical MGR/BM/BI/Technical
LAP cases) cases before (Any
sanction - only if two)
credit at branch
level is
recommending
proposal for
approval – Not
to be triggered
at login stage.
In LAP cases
also only one
Technical to be
initiated before
sanction
In other case ,
it is to be
triggered only
after sanction
I. Geo-Limit Definition
Property Location
 Property to be funded needs to be located within specified locations as stipulated in

the
Credit and Operations Policy of MAHOFIN.
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 Geo limit is defined as property should be located within 50 Km from Main branch
and within 30 Km from spoke location.
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 No Geo limit deviation requests beyond the above limit will be entertained under
any circumstances.
 Property to be mortgaged should not be in the ‘’Caution/restrictive area’’ as defined
for
each city/ location
 In case, Property is outside geo-limits of the locations specified in the Credit and
Operations
Policy, MD of the company can approve it.
J. Technical
Appraisal
In housing finance sector, appraisal means the study of the loan proposal for their
acceptance or feasibility. Technical Appraisal involves analysis of property for purpose of
determining compliance of local bye laws, physical existence of the property, measurement
and valuation, feasibility and fitness for use, to secure the loans and assure the marketability
of the assets. Technical appraisal shall be carried out through professionally qualified
independent valuers.
Valuation
Process
 Standardized formats to be used by the locations for initiating the valuation request with
the valuation agencies
 The valuation request excel should be maintained by person responsible for initiating
the
valuation report for cases which are initiated and given to the agencies as per the
defined format.
 For the First Disbursement - Property valuation (for all products) will be conducted by
two
empanelled valuers in all cases(For Mahila loans – number of Valuation reports to be as
per
Mahila loan policy ).
 For every subsequent disbursement, in under construction properties, the latest
Site Inspection Report to be obtained – which will mention the current stage of
construction (% constructed) of the property that has been financed. This will be
required irrespective of whether the project is APF or Non-APF. The subsequent
valuation will be done by the lower of two valuer whose valuation is considered at the
time of first disbursement.
 For arriving at the fair market value, the lower value of the two valuation reports shall
be
considered.
 Branch Operations and Central Operations shall check both the valuation reports for the
fair market value of the property, and any other remarks mentioned in both the reports.
 Branches are required to empanel minimum of 3 (three) panel valuers for each branch
and
utilise their services by rotation.
Guidelines for Valuers

Visit
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 The agency must ensure that the executive visiting the site, should on all occasions carry
an
ID Card
 The valuer must ensure that the property is being visited only after being provided
with a copy of the sanctioned plan. Any deviation on the same must be reported.
 The site must be identified using a route map provided or by means of the
boundaries mentioned in technical documents/sale deed. It is the valuer’s
responsibility to ensure the cross verification of the property address with that
mentioned in the “Valuation Request Form”
 Detailed measurements must be taken at site and the components such as Floor Area.,
Built
up area must be mentioned on the valuation report.
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 The valuer must also collect the information about the saleable area of the said unit
from the builder from the onsite legal documents.
 It is the valuer's responsibility to cross verify the prevailing market rates for the
said
property and maintain records of the feedback about the rates from independent sources.
 Percentage of construction to be mentioned specifically. The stage of construction must
be for the complete building and not for the particular flat/unit alone.
 The Valuer must report the following if seen at the property site or in conversation with
the
contact person or otherwise:
a) Tenanted Property - In such a scenario, the valuation report must contain a
breakup of the area tenanted and that which is not.
b) Property locked - in this case no valuation must be provided in the report.
c) Horizontal Deviation- The deviation from the sanctioned plan must be provided
as a percentage of the area sanctioned.
d) Vertical Deviation- Extent of the deviation to be mentioned even if the unit being
visited does not fall in the deviated portion.
e) Structurally unsafe buildings- Any major structural fault of the property must be
made known in the report.
f) Court orders or public notices posted on the building- The valuer must get the full
detail of any pending legal issues with the property and provide the details in the
report.
g) Property located in sensitive areas or concentrated areas.
h) Property with poor locality and property numbering.
i) Builder unable to identify the flat/unit the customer has booked.
j) Customer asking the technical agency to get in touch with brokers to locate the flat
for visit not providing the basic specifications of the flat.
k) Builder or customer refusing to give the site location and requesting the
Technical
Agency personnel to meet him at another
point.
l) Age of the property – The valuer has to specifically mentioned the age of the
property and residual age of the property
m) Distance of the property from the nearest branch-The valuers has to provide
an approximate distance of the property from the nearest branch of MAHOFIN.
n) Demolition Risk- The valuer must mandatorily provide remarks on demolition risk of
the property.
(added after current sub head (J) of Technical Appraisal -at page 18-19)Valuation
Reporting
 The Valuer must ensure the proper and timely (within TAT) Submission of Valuation
reports and should maintain a register/MIS for the receiving and submission of
valuation reports. The registers/MIS should be up to date and available for cross
verification.
 Any delays due to non- availability of the customer/caretaker/keys must be report to
the
point of origin on a daily basis.
 The valuation report must be designed as may be decided by and between MAHOFIN
and
Valuer.
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May
 The address cross checked should always contain the area pin code/ zip code.
 The boundaries should be properly mentioned either by the present owner’s name or by
the present plot/premises number.
 The valuer must provide with a sufficiently detailed road map of the property as a
part of the report along with identifiable landmark to locate the property
 Geo map along with route map to property to be included in all the reports.
 Width of approach road (Passage) to property to be mentioned in the report.
 The valuer must provide the FMV (Fair Market Value) and realizable value of the
properties
Page 25 of
May
 Valuer must ensure the correctness of saleable area and land area mentioned in the report.
 Valuer shall maintain the record for source names from whom the prevailing property
rates have been collected
 The Valuation procedure should maintain appropriate method of valuating a property
based on the available land component and the FSI consumed. In case of a low land
component and fully utilized FSI the method should primarily have the sales
comparison as the basis of valuation. But in the case of a large land component and
low usage of FSI the Summation method can be put to use.
 The cost of construction mentioned in the report must be standardized as per the
prevailing rates of construction and additional values must be mentioned separately.
 Additional value should not be included for furniture and non-permanent fixtures into
the cost of construction, valuation to be done only for immovable items.
 The area to be considered for valuation should always be as per the sanctioned plan
provided and construction as per the approved/sanctioned plan. Under no
circumstances unsanctioned area should be considered for the formulation of the net
Mortgage Value. In case there is no plan then the area of construction allowable as per
the local norms as laid out by the relevant town and country planning may be
considered but there should be clearly marked note that highlights the lack of proper
sanctioned plan.
 Depreciation of the building or its components must be considered when performing the
land and the building method for valuation and the rate of depreciation per years
should be decided based on the quality of building materials used for construction.
 Proper factoring of the built-up area must be done when considering different buildings of
different periods of construction. In case of old building which may have part of load
bearing walls loading must be more when calculating the built of area from the carpet
area than for framed RCC structures.
 In case of valuation of attached terrace, the standard practice should be to value it is as a
percentage of the flat
area.
 Delays in the site visit, if any should be immediately made known to respective single
point of contact.
 The expected TAT for site visit and the submission of the valuation reports is 2 days.
 The valuer should take and incorporate in the report 7 number of photographs
(2- external - building and road/passage facing, 1-kitchen, 1-toilet/bathroom,2-
rooms,1- main door with name plate/property number/society-building name
plate). Any one of picture be in selfie mode with customer and property in the
background.
 The Photograph of kitchen should be provided in every case of residential property
 The current age and residual age of the property should be mandatorily mentioned in
the valuation report and basis of calculating the age should be mentioned in
note/remark column of the report.
 The valuer should comment about the marketability of the property for (e.g.
property is good residential area and have a good marketability.)
 The valuer should provide details about the property as per the NDMA guidelines in
specific format provided by the company
Eligible Properties
Page 26 of
May
Ready, Resale and Under Construction (including self
Type of – Construction and Plot plus construction) Properties.
property Home Loans
Plots allotted by the authorities and developers to
be considered for funding
Page 27 of
May
No loan would be given in respect of properties meant
for residential use but which the applicant intends to
use for commercial purpose and declares so while applying
for loan.
Ready Residential property owned and occupied by
the borrower/ promoter
Lap Ready commercial property (shop, office, franchise outlets)
Rented or leased properties
Ready for possession commercial or residential premises.
Ready commercial property (shop, office, franchise outlets)
Commercial Ready, Resale and under construction properties and
Purchase Rented or leased properties
Eligible Properties
Properties can be owned by individual, and subject to Credit and
Operations
Property Ownership
Maximum age of property can be 60 years at loan maturity subject to

valuer certifying the residual age of property. The residual age of the
property at maturity i.e. after the completion of loan tenor has to be 10 yrs.
as certified by valuer.
Residual age in any case cannot be lower than 30 years at the time of
loan application
Property Age In case of resale properties, age of the property cannot be more than 25 years
The loan tenor cannot exceed the residual age of the property.
For properties not meeting above criteria, a structural stability report can
be requested from the valuer to confirm residual age of the property basis
the structural condition of the building. The Loan tenor in such cases too
cannot exceed the residual age as confirmed by the valuer/ Technical team.
Total exposure in a single housing projects which is under construction shall
be limited to 20% of the total number of units of the housing project
subject to maximum exposure of Rs.2 crore for a single project.
If no. of Units in a particular housing project is up to 8 units, then exposure can

Concentration Risk be taken up to 50% of the total number of units of that particular housing
project.
If no. of Units in a particular housing project is more than 8 units, exposure can
be taken up to 1/3rd of the total number of units of that particular housing
project.
In any case we will restrict the maximum exposure to Rs.2 crores for
Page 28 of
May
Property valuations (for all products) to be conducted by two empanelled
Valuers in all the cases.(For Mahila loan – number of valuation report to be
obtained as per Mahila loan policy)
For arriving at the fair market value, lower value of the two valuation reports
shall be considered
This willofbe required for first disbursement cases only and for
Number subsequent disbursement cases valuation to be initiated to the Valuer
Valuations whose report
considered at the time of first disbursement. If he is not in empanelment at
the time of subsequent disbursement, valuation can be initiated to any of
the empanelled valuer.
Wherever the valuation report has any adverse remarks the valuation report
has to be cleared by Credit Head or CEO or Head – Mahila Loans if the said
remarks is in within the policy deviation. If any deviation pertains to out of
policy, then the deviation approval should be obtained from Managing Director
Sanction Plan is Mandatory in all the cases
In case of non-availability of the Sanction Plan, same can be approved by
Credit
1) Property is more than 10 years old
2) Last 3 years Property tax paid receipts to be documented and as per policy
Sanction Plan for
3) Valuer must ascertain Compliance of the construction / property with
local municipal construction rules / bye laws and certify same as part of
valuation report.
4) Demolition Risk should be low and same should be part of Valuation
report. Valuer must mandatorily mentioned remark on demolition risk
Validity Technical Report - 90 days from the date of report
Properties which fall in the negative area, as specified from time to
Cautions/Negative time, Properties with non- approved usages, unauthorized colonies etc.
Property Properties which fall in cautious restricted list as mentioned in Credit and
Operations Policy. Any deviation to be approved at Credit Head or Head –
Mahila Loans or above level with consultation of Valuer
K. Caution Properties
The properties mentioned below will not be considered as acceptable collateral

 Dance Bars, Discotheque, pub, & Bar.
 Land purchased for agriculture, farms, contract farming etc.
 Agriculture land, yoga centre gymnasiums, Lal Dora (in Delhi) and any other real
estate in notified hill area will not be accepted.
 Properties with kuccha structure asbestos sheet roofs, hutments & Chawls.
 Properties in negative area and/or occupied by profiles as considered as negative as
per approved policy guidelines.
 Properties where religious sentiments are connected like Churches, Temple, Masjid, or
where religious kind of activities is being conducted.
 Properties of having Social welfare attached with like clubs, colleges, etc.
Page 29 of
May
 Properties on which legal charge or lien cannot be created as per the laws of the state
or where enforceability is weak like trust property – to be advised by local empanelled
lawyer.
 Properties of recreational importance like – Recreational Parks, Zoo, amusement park etc.
 Single use properties like nursing home, where alternate use is difficult & marketability
may be affected to be included.
 Industrial properties being used as industrial usage and warehouse.
 Note: Any deviation to the above properties to be approved at Credit Head or CEO level
Restricted commercial
Properties:
 Cinema Halls, Hotels and Restaurants

 Basements
 Schools
 Business Centres
 Properties with no approved usage
 Properties designed and constructed as per specific usage like hostels, guesthouses, etc
 Commercial properties that undertake manufacturing
 Shops in Malls
 Hospitals
However, ready possession commercial property purchase can be funded at all

locations.
For Under Construction projects can be funded, provided project is approved by us and
minimum
80% of work is
completed
L.. Factors Governing acceptability of

properties
Geographical
Location
Distances around the MOHAFIN branches shall be decided on branch to branch basis.
These distances shall be the maximum distance permissible for funding. This Factor
basically restricts funding to properties that are in underdeveloped areas and reduces the risk
of sale of property in case of delinquent customers. Further, the property shouldbe located
in any one of the existing mortgage locations as specified in the Credit and Operations Policy.
Geographic location (Remoteness) of Collateral

properties
To ensure that the collateral property is marketable and saleable, following observations to be
made and mentioned in internal property visit report.
1. Width of approach Road to collateral property – Width of approach road should be such
that at least a four-wheeler/tractor can pass through. (say 8 ft to 10 ft)
Page 30 of
May
2. Basic amenities like water, sanitation, drainage and electricity should be available
3. Distance of available nearby Infrastructure and support system such as school, college,
post office/banks, hospital, bus/railway station (Anyone should be within 2 to 3
Km from collateral property)
4. Distance of Market (vegetable/grocery/commercial/other market) from collateral
property. (Anyone should be within 3 to 4 Km from collateral property)
Page 31 of
May
5. Nearby Habitat - Is there other residential houses/buildings etc. in surrounding
vicinity. If yes, at what distance from collateral property (Anyone should be within
500 meters from collateral property). Isolated properties are difficult to market, which
should always be kept in mind
6. Nearby Landmark to collateral property – temple / mosque / church / school / etc.
(distance from collateral property to be mentioned)
7. Collateral Properties near to graveyard / burial ground / cremation ground / etc
to be avoided.
Below minimum distance to be maintained for collateral property funding which is adjacent to
water body/coastal zone
1. 500 Meters from High Tide Line in CRZ-1 and CRZ-2.
2. 200 Meters from High Tide Line in CRZ-3
For above two (point no 1 & 2), deviation approval can’t be granted by any authority, hence
such properties should be rejected outright
3. In case of, Nullah, Canal, Storm water - 10 Meter from the edge of water mark
4. In case of Lake - 75 meters from the periphery of water body.
5. In case of river - 15 meters from the edge of water mark shown in the development
plan or city survey map i.e. blue line and red line mark. (The blue line marked
considering maximum flood discharge in 25 Years, while the red line is marked
considering maximum floods in 100
Years.)
For above three (point no 3, 4 & 5), deviation approval can’t be granted for state of
Karnataka, hence such properties should be rejected outright in Karnataka. For rest of
locations, if any strong risk mitigants are available, deviation cases, may be considered, with
express, prior approval of the MD.
In addition, while taking photographs at property site, surrounding area showing

passage/main road/nearby building/ etc. should be visible in photograph
FAR/FSI
Deviation
The FAR/FSI Deviation will be one of the major factors for acceptability of the property for
funding. The acceptable FAR/FSI Deviation will vary by city. This helps in controlling the risk of
demolition.
Horizontal/Ground Coverage
deviation
Horizontal deviation or ground coverage deviation is another major factor that shall be
considered for project approval. This deviation also varies city wise.
Authoritie
s
All sanction plans need to be approved by proper authorities that have been empowered by
the state Town and Country planning Act.
Change in
usage
Page 32 of
May
If any change in usage when compared to sanction plan is observed in any project, the same
shall not be approved for funding. For acceptability of properties with change in usage, a
note by the concerned credit manager after the visit to the property need to be accompanied
with the valuation reports sent for vetting giving reasons for why the change in usage could be
acceptable.
Vertical
Deviation
Page 33 of
May
Any portion of the building that is beyond the permissible heights is considered as vertical
deviation by the government authorities. This deviation is generally observed as an additional
floor or floors. Units in these vertically deviated floors are not recommended to be
funded, as it is liable for demolition from different authorities.
Leasehold
Properties
Loans can be provided against leasehold properties if they are long term government
and development authority leases. There should be a proper process of obtaining
permission to mortgage on these properties. Further proper process with respect to
purchase and sale of such properties should also be followed.
M . Document
Requirement
 Building Plan – Approved Plan by MC or DA or TCP (in case of under construction

collateral or newly built properties – wherever applicable)/ GP or Architect plan/
Occupation / Completion Certificate / Commencement Certificate for Mumbai & Pune
Properties.
 In case of outskirt cases/ Identification challenges, Layout plan/ Pointer Plan/
Naqshbandi/
Ask Chijra or Building cum location Map prepared by Architect registered with
Municipal Council or Corporation (MC) Shall be collected. This map should specify the
plot location, landmarks, road access, boundaries, land & built-up area details,
customer name and legal document detail. Said document should be signed by
architect along with his designation with MC & Council of Architecture and to be
counter signed by Customer.
 Sale deed/ Agreement to sale/ Lease deed/ Registered Agreement/ Tripartite Agreement
etc
confirming the ownership & boundaries of the
unit/property.
 Latest Index II/khata extract/land revenue record/etc.
 Document showing the land status as Non-Agricultural is must as mentioned in the
Credit and Operations Policy (for outside MC limit collaterals).
Other Key
Requirement:
 Property should be clearly identifiable & demarcated. Demarcation at the site shall be as
per the boundaries mentioned in the ownership document.
 The RCC Buildings have life span of 60 years
 Load bearing Buildings have a life span of 60 years.
N . Additional guidelines for various

transaction
Page 20 of
May
Plot Plus Construction
Loans:
 Approvals: Non-agricultural conversion, layout Approval of Town Planning

department or equivalent authorities.
 Land to Construction Cost: The ratio of the Construction cost to Land Value should
not
exceed 3
times.
 Approved building plan by the competent authority.
Home Extension, Renovation/ Repair

Loans:
Page 21 of
May
 Estimate need to be collected which shall be prepared & signed by
Architect/Building
Contractors.
 Fresh construction/extension on ground floor will have construction cost in line of
Standard grid applicable.
 Difference in estimated cost vis-à-vis standard cost need to be pointed out & discussed
with
customer/ architect by the valuation/ credit team. The disbursement for specification
over &
above the standard decided shall begin post completion of plaster of the structure
only.
Directly Allotted Properties by Government Authority (Only by Allotment):
 In case of allotment by government Agencies to 1st allottee, there is no need of

valuation and case can be processed on direct allotment letter (applicable to all
DA allotment/ EWS/PMGAY scheme)
 In case of transfer / Auction property, valuations norms as per policy would be applicable.
Stage & Disbursement % Matrix for Construction Cases
Load Bearing Structure – Ground Floor Structure

% Disbursement
Stage of Construction % of Cost Incurred Recommended
Plinth 20% 30%
Brickwork up to Lintel (including door frames) 40% 50%
Brickwork up to slab 50% 60%
Slab casting 65% 70%
Inside/outside plaster 75% 85%
Flooring 85% 90%
Electrification 90% 95%
Woodwork & Painting etc. 95% 100%
Load Bearing Structure G+1/G+2
% Disbursement
Plinth 15% 30%
Brickwork up to Lintel (including door frames) 25% 35%
Slab casting for ground floor 40-45% 50-55%
Slab casting for first floor 50-55% 60-65%
Slab casting for second floor 55-60% 65-70%
Brickwork Complete 65% 75%
Entire Inside/Outside plaster 75% 85%
Entire flooring 85% 90%
Woodwork & Painting etc 95% 100%
RCC Framed Structures
Page 22 of
May
% Disbursement
Ground Floor Structure
Plinth 30% 40%
Page 23 of
May
Columns & Beams up to roof level 35% 45%
Slab Casting 40-45% 50-55%
Brickwork Complete 50-55% 60-65%
Inside/outside plaster 55-60% 65-70%
Flooring 65% 75%
Ground + 1 / Ground + 2
Plinth 20-25% 30-35%
Columns & Beams up to ground floor roof level 35% 45%
Slab Casting for ground floor 40-45% 50-55%
Slab Casting for first floor 50-55% 60-65%
Slab Casting for second floor 55-60% 65-70%
Brickwork complete 65% 75%
Inside/Outside plaster 75% 85%
Flooring 85% 90%
Multi Storied Building
Plinth 10% 30%
Each Floor Slab (Building RCC maximum 60%) 3-5% Incremental 2-3%
Brickwork 65% 75%
Inside/Outside plaster 75% 85%
Flooring 85% 90%
Developer Plots
% of Cost % Disbursement
Stage of construction
Incurred Recommended
On start of levelling work 10% 20%
Commencement of demarcation work 20% 30%
On Laying of WBM Road 50% 60%
On laying of sewer line 55% 65%
On laying of storm water line 60% 70%
On laying of water line 70% 80%
On fixing of kerb stone & channels on the roads 75% 85%
On laying of Electrical Cables 80% 90%
On laying of Bituminous carpeting 90% 95%
Page 22 of 51
May 2020
Notes: -
1. The stages described above are representative for standard construction

circumstances, if the valuer observes any uncommon site conditions or in between
stage, he need to apply his judgement for arriving at the % completion & %
disbursement recommended.
2. The material lying on the site can be added as additional % considering the volume &
cost of the same, the valuer needs to apply his judgment while giving such additional %
3. In case of Pile foundations, rock foundations the cost of the Plinth goes up, for the
multi- storeyed buildings it may get escalated by 4-5%
4. In case of multi-basement, the cost of the plinth goes up, for the multi-storeyed
buildings it may get escalated by 6-8% which should be added into stage
construction according to number of basements.
5. Head Operations and Head Credit can take deviation up to 20% from the stage
of recommended given by Valuer.
For considering loan disbursement, the minimum property completion level as per latest
Valuation
Report shall be:
Sr. No. Type of Property Minimum Stage of

construction
1 Resale property cases 100%
2 Self-Construction 30%
3 Self- Construction as per in 30%
Gram Panchayat area as per
GP guidelines
4 Under construction from 60%
Builder for Non-APF
Builder in Gram
Panchayat where NA
order is not available
Builder for APF
7 Home Extension 20%
8 Home Improvement 20%
Deviation in Disbursement amount against stage of

construction
No deviation approval can be given in full & final disbursement unless the stage is 100% and
the property is completed in all respect. In all cases complete OCR should be paid prior
to first disbursement.
Example of disbursement deviations is illustrated

below:
Page 23 of
May
Current Stage Branch Manager/Area Head Head-Credit and Head-
and Credit Manager/Ops Operations
Manager
30% Deviation up to 15% Deviation up to 20%
30% - 79% Deviation up to 15% Deviation up to 20% (**)
80%- 84% Deviation up to 10% Deviation up to 15% (**)
Page 24 of
May
95% - 100% No Deviation No Deviation
**The final disbursement of 5% will be only after completion of the work and will be only by
way of reimbursement, after site visit by the Branch Manager and/or Credit Manager/Ops
Manager. Person verifying should satisfy themselves that the work is complete in all respects
and submit a certificate to HO- Ops.
O. Note for spoke

location
Process Mahila/Micro LAP Cases Normal Cases

Sourcing Geo limit Within 50 km from Main branch Within 50 Kms from branch and 30
30 Kms of Spoke Location Kms of Spoke Location
Technical Valuation Technical Valuations, to be done Two Valuation must be done by

by Technical Vendors instead of Technical Vendors.
Valuation has to be done by Two Technical Report is mandatory

Empanelled Valuer for Micro for all cases other than Micro LAP
LAP cases at Spoke Location cases.
Empanelment process to be
Valuation has to be done by expedited in Spoke Locations
Empanelled Valuer for Micro
LAP cases at Spoke Location Resident Manager will collect all
the required documents as per the
Empanelment Process and will
Resident Manager will collect all comply with all the process as per
the required documents as per Empanelment Process. Documents
the Empanelment Process and to be send to HO Credit Team
will comply with all the process for empanelment
as per Empanelment Process.
Documents to be send to HO We will avoid initiating technical to
Credit Team for empanelment. Hub Location Vendor with higher
Cost
Only One Valuation Report is
required
Valuation by Hub Location
vendor is not allowed due to
higher cost involved for spoke
location because of Distance
Valuation Report is mandatory

Tranche Disbursement for all the Micro
Subsequent LAP cases
technical will be Subsequent technical will be
(For under construction initiated by Spoke Location. initiated by Spoke Location. DRF to
Page 25 of
May
properties) to be collected from be collected from customer
customer at spoke location and at spoke location and
forwarded to Hub location Ops forwarded to Hub location Ops
manager for disbursement. manager for disbursement. HUB
HUB Ops manager will Ops manager will check and
check and forward the same to forward the same to HO-Ops in
HO-Ops in physical for
physical for disbursement. disbursement.
P. APF Process and

guidelines
APF is the pre-approval of multi-unit projects other than those developed by

Development Authority, Resale or Self Construction properties. There are two types of APFs
namely Normal APF and Deemed APF.
Normal
APF:
• The process for pre-approval of the project will be carried by
BM/ABH.
• Application Letter on Letter Head to be collected from Builder giving all the information
about the group, past and ongoing project details. Detailed information on Current project
which needs to be approved to be given. (Please refer Annexure 1 for Application)
• Property Documents – Copies of property documents for pre-approval of the project
will be collected by SM/BM. In case of first request from customer for disbursal in a project,
the property documents can be collected by the customer.
(List of documents to be collected mentioned in

Annexure 2)
• The CM/SM/BM will forward the property documents to Legal Agency and Technical
Agency for initiating legal and technical verifications respectively.
• Legal Agency – The empaneled lawyer will vet the property documents, call for
additional documents if required, check if necessary approvals have been taken by the
builder/developer and opine the legal report stating that the title to the property is clear and
marketable and issue the report.
• The legal scrutiny report and legal search reports need to be vetted by Head Legal and all
the concerns raised by Legal Head needs to be resolved accordingly.
• Technical – The Technical Agency will visit the project site and ensure that the construction
is as per the approved plans and confirm the current stage of construction. The Technical
Agency will give the technical report along with unit-wise area, unit value, current stage of
construction and the photograph of the site. Technical Valuations to be done by two Agencies
• The CM/BM will ensure that the project site is visited by the Technical Agency once in every
two months or as and when there is fresh disbursal demand from the builder, confirming
that the progress of the project is as per schedule and construction is as per plans. The
progress in the stage of construction will be updated in MIS/System.
• Technical Agency to specifically check and confirm in his report on whether the project is
stuck with no progress in the past 6 months.
Page 26 of
May
• FCU would check the file and conduct verification of documents provided by the builder
and submit a verification report.
 In the cases where a company is the owner of the land being developed, ROC search would
be
required.
• In cases where builder has taken construction funding from any other bank/lender, in such
cases the builder will provide NOC from the bank/lender for each individual unit funded under
the project
Page 27 of
May
• The CM/BM/ABH will verify the original documents of the builder and will mention
"Originals Sited" on the photocopies of the document. In cases where builder has taken
construction funding from any other bank/lender, in such cases the builder will provide NOC
from the bank/lender for each individual unit funded under the project.
• BM/ ABH and Technical Manager to personally visit the site to check the progress of
completion and check reputation of project/ builder and submit visit report with
recommendation note
• BM/ABH will prepare the recommendation report and submit the proposal to Credit Head
and Sales Head/CEO for approval along-with deviation if any on legal, technical
and FCU (Recommendation Note as per Annexure 3)
• Post approval, CM/BM will submit APF file along with Property documents, RCU Report,
Legal
Report, Site Visit Report, APF Technical Report and approval mail to Operations
Team.
• Post receipt of APF file, Operations team will generate the APF No and incorporate the
entire project details in the system. Till the time System functionality made available, master
excel sheet will be maintained centrally by HO technical manager and MIS will be shared
regularly with Sales, Credit & Operations
• Operations will generate the APF letter (As per
Annexure 4)
• The status for all the projects for which APF Process has been initiated should be
maintained at
Branch Level for proper tracking and same needs to be regularly shared with HO technical
manager
• APF data to be maintained in excel and following columns are to be
maintained
1. Sr.
No
2. APF
No.
3. Project Name and
Address
4. City
5. Builder Name and
Address
6. Builder
Score
7. Builder Contact Person & Contact
Number
8. Total Floors
proposed
9. No. of floors
approved
10. No. of units approved and unit wise area
details
11. Appraised Rate per sq.
ft
12. Tech %
completion
Page 28 of
May
13. Tech %
recommended
14. Site Visit done by ad Last
date
15. Legal Agency
Name
16. Legal Documents to be collected from
Individual
17. Builder Bank Account
No
18. Builder Bank and Branch
Name
19. Builder Bankers/Lenders NOC required
Y/N
Deemed
APF:
Deemed APF is the process which has been introduced to reduce the turnaround time to
approve the project. All the process, to be followed of normal APF process, except for original
verification of property documents
Under Deemed APF, project to be approved by any two of the leading banks or
HFCs
At-least one must be approved by HDFC Ltd, ICICI Bank, Axis Bank, Kotak Bank, Nationalized
Banks, PNB Housing Finance, Muthoot Housing, Aadhar Housing, Repco Finance.
Page 29 of
May
Total exposure in a single housing project which is under construction shall be limited to 20%
of the total number of units of the housing project, subject to a maximum exposure of Rs 2
crore for a single project
If no. of Units in a particular housing project is up to 8 units, we propose to increase the

exposure to
50% of the total number of units of that particular housing
project.
If no. of Units in a particular housing project is more than 8 units, we propose to increase
the exposure to 1/3rd of the total number of units of that particular housing project.
In any case we will restrict the maximum exposure to Rs.2 crores for single housing
project
Internal builder scoring will be done and builder having less than score 5 will not be
considered for
APF.
Builder Scoring
Model:
Parameters Variable Score Weightage
Past Projects (Weightage 40%)

Business Experience < 1 year 0 10%
1 to 3 years 3
3 to 5 years 6
5 to 10 years 8
> 10 years 10
No. of Projects > 10 projects 10 10%
Completed
> 5 projects 7
> 2 projects 5
< 2 projects 2
No. of Flats delivered > 200 10 10%
> 100 8
> 50 6
> 25 4
< 25 2
Timely Completion On time 10 10%
With some delay 7
Always delayed 3
handover
Current Projects (Weightage 60%)
No. of Flats > 50 10 10%
> 25 7
> 10 6
< 10 4
Project Approvals by Municipal 10 10%
Corporation
Gram Panchayat 5
Page 30 of
May
Project Location Good 10 10%
Average 7
Poor 5
Project Marketability Good 10 10%
Page 31 of
May
Average 7
Poor 5
Infrastructure Good 10 10%
Availability
Average 7
Poor 5
Projects APF HDFC, ICICI Bank, 10 10%
Axis, Kotak Bank and
Nationalized Banks
HFCs 8
Not approved 5
Q. Guidelines for Funding Gram Panchayat Properties:
The following guidelines are approved for considering cases under Gram Panchayat (GP)
where Collectorate NA permission is not available. The funding will be considered
subject to the following: -
a. Panel valuer to certify the adherence to building plan with building bye-laws,
give opinion on the building plan. Also, name of authority who has approved the
building plan to be mentioned in the valuation report, and to state whether such
authority is authorized to approve the building plan and to state whether
such authority is authorized to approve the building plan under TP Act.
b. We can fund up to Gr+3Floor for all types of structures in Gram Panchayat
provided height of the ceiling of the flat proposed to be funded is not more than 15
meters from the ground level irrespective of height of the building from the ground
level. Additional conditions for funding in 3rd floor Gram Panchayat Property.
 This Deviation will not be combined with any other deviation relating to
Loan amount, LTV or Property.
 Loan on Gram Panchayat properties sanctioned under this deviation not
to exceed 10% of the incremental business for each state in a month.
c. Only the following cases can be funded in Agriculture & No Development zone and
also those cases wherein construction plan is approved by gram panchayat, in
areas under the jurisdiction of PCMC/PMC/PMRDA.
i. 100% completed and occupied flats / houses
ii. Resale case of flats/houses after three years of first sale
iii. There is a society formed within three years and proper share certificate is issued.
iv. Apartment or towers which has proper approval from PCMC/PMC and any
other government planning authorities like MHADA, CIDCO, etc.
Page 32 of
May
d. NA (non-agricultural) permission from Collector/Tehsildar with change of user
from agricultural to non-agricultural to be marked for residential user. If NA
permission is not available, then one of the following documentations to be
obtained: -
S. Documentation Required Approving

No Authority
1 Residential Zone Certificate for the specified Survey No. Town Planner
2 Fine imposed Letter-Dandatmak Letter (NA 45/NA 36 etc.) Tehsildar
3 NIT-Application Challan for Regularization letter NIT

4 Gaothan Certificate Gram Sewak
e. If the layout plan is not approved by concerned authority like Collector or

Town Planning Department etc, then Panel Valuer has to certify “Risk of
Demolition “, if any.
f. Building plan approval can be approved by Collector, Zilla Parishad and
Gram Panchayat (Gram Panchayat approval shall not be acceptable. Also, Gram
Panchayat does not have rights to approve building plan in certain localities like
Pune.)
g. Building shall be located away from main or arterial road, i.e., somewhere inside
the layouts to minimize risk of demolition. Panel Valuer to ascertain and report
on this aspect.
h. Panel Valuer to certify Risk of Demolition, if any and provision of set-back.
i. Panel valuer to classify Risk of Demolition as Low/Medium/High. We shall
not consider properties where; the Risk of Demolition is mentioned as
Medium/High.
j. For self- construction cases minimum 30% completion level to be achieved
before our disbursement.
k. For Builder purchase cases, minimum 80% completion level to be achieved

before our disbursement.
l. Additional documentation: - Borrower to furnish undertaking about liability
arising out of any unforeseen situation.
R. Role of Technical
Managers
Visit of all collateral properties wherein loan value (total exposure to customer) is above Rs.10
Lac. Such visit has to be done before sanction in LAP and BT cases, and before disbursement in
all other cases. However, for logistic reasons, if such visits can’t be carried out before sanction/
disbursement, deviation approval to be taken by branch credit/BM from NCM and Dy CEO on a
case to case basis.
Page 33 of
May
Key responsibilities for Technical
Manager:
 Appointment of new vendors for valuation

 Review of existing vendors on half yearly basis and culling of vendors who are not
up to mark for defined TAT and quality
Page 34 of
May
 Verification of vendor bills
 Monitor vendors for TAT and quality on ongoing basis with input from respective
branch credit staff
 All case valuation reports (of loan value higher than Rs.7 Lac and/or having
technical
deviations) to pass through the Technical manager for appropriateness of valuation
 Approval of all technical related aspects of sanction case to be put through
technical manager
 Formulation and recommendation of State specific technical guidelines/policy
 Visit to properties as per request of credit / audit head / compliance head / FCU
head
/Collection head and also to carry out spot random checks on frequent
basis
 Visit of properties in all part disbursed cases on quarterly basis (preferably in 1st
week of every quarter – Jan, April, July, Oct). Report to be submitted along with
property pictures and customer communication
 APF processing of project wherein there is more than 15 units/flats/tenements
 Recommendation of project for funding towards individual flats - in all cases
wherein transaction is direct purchase from builder (in Non APF projects)
 Work closely with legal counterpart on valuation front.
 Maintain MIS related to technical vendor and valuations.
 Identification, reporting and facilitation of closure for fraud/suspicious case
 Re-valuation of properties in NPA Accounts based on requirement of the Collection Head.
S. Blacklisted
valuers
Due to negligence in valuation norms and practices, below list of technical valuators have
been blacklisted and blocked in the system. An empanelled valuer gets blacklisted whenever
it is found that over valuation has been given by the vendor and also when there are
continuous lapses in adhering to our defined valuation guidelines (TAT, quality, reporting of
all required details, etc.). Blacklisting is done centrally at HO on recommendation of technical
manager.
No valuation shall be initiated to these valuators from any

locations.
Sr.no. Location Name Address
1 Mumbai Patwardhan Consultants 101, Awing, Golden Plaza, S
Pvt. Ltd. G Barve Marg, Kurla East
Mumbai
2 Madurai G. Balamurugan 153 N, 2Nd Floor, North Veli
Street,
Madurai 625001
3 Chennai Cube Engineers Flat No V, 1St Floor, No 7, 56
Street, Ayyapuram, Rajamannar
Salai, K K Nagar Chennai 600078
Page 30 of
May
4 Pune / PCMC Mahendra Bodhe 206, C/O Mahendra
Construction, Ashoka Centre,
2Nd Floor, Pune
Satara Road, Pune 411009
5 Mumbai Kakode Associates Corporate Office, 102,
Samarth Estate Lt, Prakash
Kotnis Road, Mahim West
6 Vadodara NihirbabuBalwantray B 2 Samp Complex, B/H Kalpana
Dave Talkies, Anand, Gujarat
Page 31 of
May
7 Thrissur / Kannur / Associated Engineers & Door No 306, 3Rd Floor, Mora
Kottayam/Malappuram Valuers Complex, Gh Road, Opp Tbs
/Palakkad/Kochi/Calicut Book Stall, Muthalakkulam
Kozhikode Kerala 673001
8 Rajkot Jayesh A Katira 212/213, Sanjay
Commercial Complex, Nr Doctor
House, Rajputpara Main Road,
9 Madurai Kumari Cunsultancy 79, Chandran Mess 1St Floor,
AlagarKovil Main Road,
Tallakulam, Madurai 625002
10 Nagpur Vedant Associates Plot No 207, Tiranga
Square, Nandanvan Layout,
Nagpur
11 Satara SS Bodhale And P No 2, S No 19B/20B, Opp
Associates Triveni Park, Visawa Camp,
Godoli, Satara 415003
12 Nagercoil J R Julius 4A1, St Antony Street,
Thalavaipuram,Nagercoil 629004
13 Satara KUSHIRE Associates Porwal Apartment, Nr Dr Rajput
(Dilip Pandurang Hospital, Islampur
Kushire)
14 Calicut/Malappuram/Kannur K B Vijayakrishnan 20/1521D, Willows,
Near Malikayil Temple, Kallai
P O, Kozhikode,673003
15 Nagercoil Er. P. Justin Paul No.9, Concordia Complex, K
P Road, Nagercoil - 629001
16 Madurai B. MOHANA RENGAN 24/10C3, West Ponnagaram
3rd street,Madurai – 16
17 Ankleshwar Prakash Lokhandwala A/S-7, Sardar Patel Complex, G
I D C, Ankleshwar 393002
18 Surat MR R K KULHHAR 147, Super Yarn Market, Zampa
AND CO Bazar, Surat 395003
19 Kochi/Kottayam BUILD TECH (Er K MookambikaSadanam,
Rathnakaran ) Kolasseri, Kavumbhagam P O,
Tellichery Kannur Dt Kerala
20 Vadodara ER K RAMESH AND SF -19 Shivoloy Complex2,
ASSOCIATES Nr. RoneshworMohodev
Temple, Opp. HP Pelrol Pump,
Vosno Rood, vododoro -390007
21 Chennai G. Ganesh Kumar G-1, Bharat Classic Flats,
(G.K.Associates) Valasaravakkam,Chennai-600087
22 Kottayam / Kochi MECC ASSOCIATES 45/1978/Y1, Meadow
Court, Nice Garden, P J Antony
Ground Road, Pachalam,
Kochin Kerala
23 Nagpur Gotmare associate 168, Shankar Nagar, Nagpur
670110
24 Trichy P. Sudhakar No 209, 1St Floor, Puspages
Complex, Nr Murgan And
Co, Thiru Vi Ka Road, Karur
639002
Page 31 of 51
May 2020
COMPLEX, SHASTRI ROAD,
TENNUR, TRICHY -
620017.
25 Aurangabad Rohit G Chopra ( Design Plot No 08, Puneet Building,
Scope ) Dr Sherkar Hospital, Nr
Kranti Chowk Police Station
26 Surat Optima Engineers & 2/B SiddhShila, OppJivan Bharti,
Developers Nanpura, Timaliawad, Surat
395001
27 Tirunelveli SP Vee Vengada Office No 4, Madurai Road,
Raghavan Mansion Tirunelveli Junction
627001
28 Ahmedabad KISTIC ADVISORY
Recommended by Recommended by Recommended by
Sachin Deo (National Credit Manager) Sandeep Kumar (Dy CEO) Manish Malkan
(CRO)
Recommended by Recommended by
Sachin Kondhare (Head – Compliance) Bikas Kumar Mishra (Head – Mahila Loans)
Approved By
Jeevandas
Narayan
Managing Director
Page 32 of
May
ANNEXURES
Annexure 1
Builder / Project Information

Form
I Builder Group Name General Information
Company Name formed for
Current Project
PAN of the Developer
Office Address
Office Status No Office / On Site / Rented / Leased / Permanent

Contact Person Name
and designation
Contact person Telephone
No.
Email
Website
Any Other Information
II Business Information
Experience
: Company
Type: / Director Information(Active):
Partner
Sr. No. Partner/Director Name % Share Experien Remarks
ce
1
2
3
4
Employee Information:
Technical Managerial Total Remark
s
III Details of Completed / On Going / Launched Projects
Project Project Type Project Project Project Start Project Customer

Name and Status Saleable Date Completion Segment
Page 33 of
May
Location Area & Date
Value
Plots/Reside Completed/ EWS/LIG/MIG
ntial/Comme On Going / /HIG
rcial/Industri Launched
al
IV Project Information (Current Project under consideration for APS Process)

Name of the Project
Location of the Project
No. of Towers/Wings
No. of Floors
Types of Flats
Total No. of units
No. of units sold
Average sale value of the
units
Average construction cost
of units
Customer Segment EWG / LIG / MIG / HIG
Approval Status: Temporary / Partly / Fully Approved
Project Loan Details: (If any)
Name of the lenders with
whom Project is
Overall stage of
construction:
Quality: Poor / Average / Good / Excellent
Type of Locality: Below Average / Average / Good / Premium
Builder Bank Details:
Bank Name
Branch Name
Account Type
Page 34 of 51
May 2020
Account Number
IFSC Code
Whether project registered with RERA
Payment Schedule of the proposed project
Stage % Payable
Earnest Money
Balance earnest money (within 20 days)
On completion of excavation or piling
On completion of lower ground plinth
On completion of 2nd Podium
On Completion of 1st Slab
On Completion of 3rd Slab
On Completion of 5th Slab
On Completion of 7th Slab
On Completion of Gypsum work of the flat
On laying of flooring of the flat
On Fixing of doors & windows of the flat
On possession of the flat
For Builder…..
Authorised Person
Name of the
Person
Designation
Page 35 of
May
Annexure 2
Indicative List of
Documents
Sr DOCUMENT CHECKLIST DOCUMEN

no. T TYPE
1 7/12 Extracts, Property Cards, Record of rights, latest revenue records Legal
2 Non-agricultural permission / land conversion / diversion order Legal
3 All chain of sale deed/lease deed, tripartite agreement in case of land is acquired by Legal
the builder/developer through lease.
4 All Chain of Development Agreement / Joint Development /Joint Venture/Trust Legal
Deed alongwithRegistration and Index II
5 Construction Agreement / Joint Development/Supplementary Agreement/ Sharing Legal
/ Distribution Agreement /MODT -Memorandum of Deposit of Title Deed
/MORTGAGE DEED
6 Power of attorney from landowner to builder/developer, in case of Legal
development agreement is executed by the landowner with the
7 Release deed / reconveyance deed if applicable Legal
8 DraftAgreementfor Sale/Sale Deed/Lease Agreement/Deed to be executed by Builder Legal
9 Sub Division order / Transfer Permission from Development Authority/ Location Legal
certificate from village office / Intimation of Disapproval (IOD)/Intimation of
Approval (IOA) /Letter of Intent (LOI) / Betterment Charges Paid Receipt/ Gazette for
declaration of SRA / Property, Municipal Tax, ARC/ Revenue receipt / Tax bill/Tax
10 Will, Probate, Letter of Administration and Inheritance certificate if applicable Legal
11 Court proceedings/order if applicable Legal
12 ULC permission/order, as applicable Legal
13 Latest Title clearance certificate by builder/developer's advocate Legal
14 Latest Title search report / encumbrance certificate by builder's advocate Legal
15 MOA, AOA, Certificate of Incorporation (Builder Company/LLP) / Partnership Legal
Registration
16 Certificate (partnership
Deed of partnership, firm) / Establishment
retirement certificate
or admission deed or any(proprietor ship firm) deed
other supplementary Legal
17 Society registration certificate if applicable Legal
18 Building Approved Plan and Layout Plan Technical
19 Individual building floor plans approved by concerned authority Technical
20 Commencement Certificate (CC) or Occupancy certificate (OC) if applicable Technical
21 Sales Brochure and Carpet/Built up - Sale area statement for Units Technical
22 Fire NOC (Applicable for Building Height above 15 Meters) Technical
23 Environmental Clearance (Applicable for Construction area more than Twenty Thousand Technical
Sq. Mtrs)
24 Forest Land clearance (as applicable) Technical
25 Costal Regulatory Zone NOC (as applicable) Technical
26 High Rise Committee Approval (as applicable) Technical
Please note that above list is prepared for guidance purpose only and it is not the exhaustive
list. Documents required are project specific and subject to local land rules and bye-laws
Page 36 of
May
Annexure 3
APF - Format
Branch Office
I. PROMOTER
1 Name of the Builder

2 Nature of Organization Proprietorship /
Partnership /
Pvt Ltd Company /
Public Ltd Company
3 Date of Incorporation
4 Place of Incorporation
5 City of Operations
6 No of years in Operations
7 Name of Promoters / Partners of the builder, age,
Qualifications and their shareholding.
8 Reputation of the builder / Developer Very Good/Good/Average/Poor
9 Contact Person and Telephone Nos
II. PROJECT
1 Name of the Project

2 Address of the Project
3 Whether the property is on Joint Development
4 Sanction Plan approved by and No.
5 Commencement Certificate is obtained – details
6 Other Statutory Approvals like ULC, NA Order, Fire
Authority NOC, Airport Authority NOC, etc. obtained
7 No. of Floors as per approved Plan
8 No. of Dwelling Units as per Plan
9 No. of Dwelling Units to be considered under APF.
(Building / Wing Wise details to be given)
10 No. of Dwelling Units to be given to Landlord (not
considered under APF)
11 Sales rate applicable
12 Cost of Construction
13 Present Stage of Construction
14 Name of the Valuers to carry out project valuation
Valuer 1:
Valuer 2:
15 Whether the constructions are carried out as per the
sanction plan. (based on valuation report)
16 Deviation in construction Yes / No
If Yes - please state Major / Minor
Page 37 of
May
17 Demolition Risk
18 Disbursement Schedule
III.
Internal Builder Score
IV. TITLE
1 Name of the Advocate firm which has done the Title

verification of the project
2 Whether title of the project is clear Yes/Subject to conditions/No
3 Whether conditions subject to which title is clear are Yes/No
complete
4 As per Advocate, Nature of Title Documents to be 1.
obtained at the time of disbursement for creation of 2.
security (in case of individual loans)
5 Agreement of Sale to be executed by 1.
2.
6 Search Report Till date
V. INSPECTIONS / NEIGHBHOURHOOD ANALYSIS, ETC
1 Inspection report by Branch Manager

2 Whether original documents have been verified by
Branch Manager
3 Comments on Project Location Excellent / Very Good/ Good /
Average
4 Availability of infrastructure Yes / Development in
progress / No
Potable water / Road /
Electricity / drainage / mode
of transportation / School /
College / Market / Hospitals
5 Whether there exists any negative factors in the vicinity
that will affect marketability of the project
(Please give details)
Demand for property in area Very Good / Good / Average
6 Copy of Agreement for sale (any Adverse clauses)
7 Whether Neighborhood Analysis done
8 Marketability
9 APF is valid for
VI. OTHER DETAILS
1 System for follow up of Original Title Deeds where the

documents are not executed immediately.
2 If the project is mortgaged with other Financial
Institution, format of NOC to be obtained before
Page 38 of
May
disbursement of a loan
3 Total Exposure limit in the project
4 Maximum price to be considered for financing
individual loan applications in the project
5 Any restrictions on LTV
6 In case In Principle approval following condition is
mentioned
“Approval is In Principle and disbursement of loan will
be subject to plan approval and fulfillment of conditions
mentioned therein”
7 Any extra care to be taken in case of deviations in
constructions
8 Interval / stages at which project valuation to be done
by panel valuer
9 Interval at which project inspection to be done by
authorized company official
10 Any other terms & conditions to be fulfilled before
sanction / disbursement of a loan
11 Connector Fees
12 Cheques to be drawn in favor of
13 Special Conditions (if any)
Recommendation Note by BM:
Page 39 of
May
Annexure 4
On MAHOFIN Letter Head
To,
M/s. Builder
Name,
Address:
Subject: APF approval of project named “Project Name” developed by M/s. Builder
Name on Proposed Residential Building on Project Address…. for individual home loan
cases under Construction Linked Payment plan.
Sir/
Madam,
With respect to the above subject, we are pleased to inform you that we have approved
your project on the basis of following documents:
 The approval will enable the members who have booked in the project to apply for a
loan to MAHOFIN. MAHOFIN would assess the repayment capacity of each applicant
according to its norms to grant a loan and reserves the right to reject any application
that does not fit into norms
 It is presumed that all the material facts concerning the projects have been disclosed to
us.
Kindly note that the approval would stand cancelled if any material facts is not disclosed
and the same is found to be at variance with the statutory laws fulfilled or any
other way detrimental to the interests of the project and its members.
 MAHOFIN will require all original documents related to the property, the customer
intends to purchase, as per our Panel Lawyer / Valuer.
 MAHOFIN request your co-operation in providing any further information or document
that we require regarding the project.
 The approval is subject to Legal and Technical clearance from Empanelled agencies from
the
MAHOFIN
.
 You may use our Logo in all your advertisement subsequent to clearance from Legal
and technical agencies.
 Please quote the reference no. APF Number for any correspondence on the issue.
Please don’t hesitate to call us in case of any clarifications.
Following Original Documents are required to be submitted before First

Disbursement of
Individual
case
Page 40 of
May
 Registered agreement for Sale between Builder (Firm/seller Name) and
prospective purchasers.
 Registration
receipt
 SDR (Stamp Duty paid
receipt)
Page 41 of
May
 Allotment letter issued by M/s. Builder Name.
 NOC from M/s. Builder Name in Our format for mortgage
 Index II
 OCR receipts
 Demand Letter.
 Financer NOC shall be required in each case if the project finance is availed by M/s.
Builder
Name.
We would like to assure you of our best services and wish you the very best through
your venture. Please feel free to revert to Name and contact details of Sales
Manager&BranchManagerto be mentioned, for any further information /
clarification.
Best Regards,
For Manappuram Home Finance Limited
Authorized Signatory
Page 41 of
May
Annexure 5 – Valuation Empanelment Letter (on MAHOFIN Letter
Head)
To
Date:
Valuer
Name
Addres
s
Sir/
Madam,
Sub: Engagement for rendering Technical Inspection & Property Valuation

Services
Greetings from Manappuram Home Finance Ltd.,

(“MAHOFIN”)
With reference to the personal discussions we have had with you, we are pleased to inform you
that MAHOFIN is desirous of engaging your services to conduct Technical Inspection and
Property Valuation. The engagement will be on a ‘principal-to-principal basis, upon the
following broad terms and conditions, viz:
Purpose &
Scope:
The purpose of engaging this Consultant for conducting Technical Inspection & Valuations
services is to obtain sound professional opinion on adherence to layout maps and building
plans as also to obtain fair market valuation of the property being furnished to Manappuram
Home Finance Ltd. (“MAHOFIN”) by prospective Customers of its Housing Loan, Commercial
Purchase Loan and Loan Against Property schemes.
The scope drawn up for the Consultants thus would include the
following:
1. Studying and examining the layout plans and/or building maps, plans and approval/s
issued by local and competent authorities in respect of properties which are offered as
securities for securing re-payment of Home Loans and Loans against property
advanced/to be advanced by MAHOFIN to Customers
2. Providing Fair Market Value (“FMV”) in line with the guidelines of the Institute of
valuers in respect of the properties, mentioned hereinabove
3. Providing details about the property as per the NDMA guidelines
Page 42 of
May
Methodology and
Reporting:
The Consultant shall visit/cause personal visit to and inspection of the property, also the
carrying out of construction in accordance with the copies of the sanctioned plan/s as
furnished by the Customers to MAHOFIN and shared by MAHOFIN with Consultant.
Page 43 of
May
The Consultant shall file his report in format as may be decided by and between MAHOFIN and
the Consultant within prescribed Turn-Around-Time (“T-A-T”) and submit the same
addressed to the Branch Manager, MAHOFIN at ……………
The Report should also include 7 coloured photographs of the property, including two outside
and four inside view and one photo in selfie mode with property.
Fees, Invoicing and

Payments:
For rendering the agreed services, the Consultant shall be paid fees as per the table
hereunder mentioned. The commercials for individual cases as agreed between us are:
Particulars Fee Remarks T-A-T

Property Inspection Rs.1400+GST Up to 50 KM (2) days
and Valuation
Property Inspection Rs. 1650 + GST Above 50 KM (2) days
and Valuation
Subsequent Visit Rs.900+GST Up to 50 KM (2) days
Subsequent Visit Rs.1050+GST Above to 50 KM (2) days
APF Visit &Report Rs.1650+GST Up to 50 KM (2) days
APF Visit &Report Rs.2650+GST Above 50 KM (2) days
MAHOFIN will endeavour to make payments against verified invoices within 30 days of date
of its receipt. In the event payments are delayed thereafter MAHOFIN shall agree to pay
interest at Bank rate for delay/s if any, on a pro-rated basis.
All payments made by MAHOFIN to the Consultant shall be subject to Tax Deduction at
source (“TDS”) at prescribed rate/s and MAHOFIN shall issue a consolidated TDS certificate at
the end of every Financial Year after the finalization of its Accounts.
Right of Set-
off:
In the event that it is realised that there has been an over-payment or an under-delivery of
the agreed services, MAHOFIN reserves the right to affect a set-off against subsequent
invoices to negate the effect of excess payment, under advice to the Consultant. Provided
further that in the event of any discrepancy in invoicing or payments, the Consultant shall
ensure it raises its concern.
Other Conditions of
empanelment:
MAHOFIN has the right to access all books, records and information relevant to the
outsourced activity to the Consultant.
MAHOFIN has the right to avail the activity in full or part of any properties its customer and
the allotment of work will be at the sole discretion of MAHOFIN.
MAHOFIN has the right to conduct audits, on the Consultant whether by its internal or
external auditors, or by agents appointed to act on its behalf and to obtain copies of any
Page 44 of
May
audit or review reports and finding made on the service provider in conjunction with the
serviced performed for the MAHOFIN by the Consultant.
The Consultant shall indemnify and hold harmless the Client, its officers and employees from
and against damages, liabilities, losses, costs, and expenses, but only to the extent
caused by the
Page 45 of
May
negligent acts, errors or omissions of the Consultant, or of those for whom the Consultant is
legally liable, which arise out of the Consultant’s performance of its professional services.
Term &
Termination:
This engagement will be in force for a term of 1 (One) year from the effective date, which if
not specifically mentioned herein shall be the date of this engagement letter. After the expiry
of 1 year this engagement may be renewed thereafter upon review by MAHOFIN.
The engagement may be terminated by either parties after issuing 3 (Three) Months prior
notice without assigning any reason therefor. Save that MAHOFIN shall have sole right to
terminate due to certain specific reasons such as breach of terms of this engagement by
parting of confidential information as enumerated herein under.
Maintaining
confidentiality:
The Consultant will at all times endeavour to maintain strict confidentiality whilst
rendering of services to MAHOFIN. They shall not part with or disclose to any third party, details
divulged to them or shared with them by MAHOFIN with any person/s including the loan
applicant/s, without the consent of MAHOFIN. In the event of MAHOFIN learning of
information regarding its customer/s, the property/ies being parted with or provided to any
unauthorised person/s, MAHOFIN shall be entitled to terminate this engagement, without
assigning any further reasons therefor.
Upon expiry/termination of this engagement due to efflux to time or otherwise, the Consultant
shall:
1. forthwith return all data, property details and documents etc. provided by MAHOFIN
to
MAHOFIN
2. present the final invoice for consideration of MAHOFIN not later than 7 working
days thereafter.
3. render all possible assistance to transition the services to MAHOFIN or its chosen
nominee /
provider.
D is p u t e
Resolution:
In the event of any dispute arising out of this engagement or any of the terms contained herein,
the parties shall first seek resolution of the same through mutual discussion and in the
circumstances of not being able to arrive at an acceptable solution within 3 (three) months,
refer the dispute to a Sole Arbitrator under the provisions of the Arbitration and
Conciliation Act, 1996 and conduct the arbitration in Mumbai. The language of such
Arbitration shall be English.
C o n t in u it y
:
Page 46 of
May
The Consultant shall at all times, endeavour and maintain continuity of services as
agreed hereinabove, uninterrupted by disruptions - extreme situations of Force Majeure
excepted.
Upon termination of this engagement, the Consultant shall assist MAHOFIN by way of
providing all existing data in its custody as also back-ups, if any, to help ensure continuity in
MAHOFIN’s working.
Miscellaneous:
1. Both parties have the proper authority and sanction to enter into this
engagement, in accordance with the provisions of their respective constitution
documents.
2. As this engagement is on a ‘principal-to-principal’ basis, neither party shall actively by
itself, do or permit to be done, any act/s detrimental to the others’ interests. Neither
party shall
Page 47 of
May
encourage or permit poaching of the others’ staff and personnel at no time during
this engagement and for 3 (three) years thereafter.
3. In the event that any person/s offer/s any unlawful/illegal inducement, gratuity or
any amount by whatsoever term defined, the Consultant shall report such advance, in
writing or in person to either the CEO of MAHOFIN or in his absence, to the Head –
Credit at the corporate office of MAHOFIN at Unit No 301 to 315,Third floor, A
Wing, KankiaWall Street,Andheri-Kurla Road, Andheri – East, Mumbai 400 093
4. This Engagement Letter is being drawn up in two like sets and each of the parties shall
retain
1 set each. Should the above be acceptable to you, kindly acknowledge your
consent in writing upon a copy of this letter.
Upon your acceptance, we would request you to commence providing verification and
valuation of properties referred to you by the Company.
Yours faithfully,
Authorized Signatory
Accepted the Terms and conditions stipulated
above. Sign:
Name:
Place: _
Date: _
Page 48 of
May
Annexure 6: Points to be covered in Valuation Report
Sr.No. Particulars Description

Customer Details
1 MAHOFIN Branch Name
2 Application Number
3 Date of Technical Request Received
4 Date of Technical Report
5 Purpose of Valuation Home Loan/Home
Construction/Home
Improvement/Home Extension /LAP/
6 Name of the Customer
7 Name of Current Owner/Seller
Property Details
1 Property Address with Pincode&
Landmark
2 Name of the property owner
3 Type of Property Individual House/Duplex/Row
House/Flat/Shops/ Industrial Unit / Other
4 Approved Usage of the property Residential/Commercial/Industrial/Mixed
5 Actual Usage of the property Residential/Commercial/Industrial/Mixed
6 Property Occupancy Details Self-Occupied/Rented/Vacant
7 Name of the person Occupying the
property
8 If Rented, tenant name and Rent
9 Expected/Rent Received
10 Relationship of person occupying the
property with customer
11 Name & Contact details of the
person met at site
12 Name on House/Door/Society Board
13 Proximity to civic amenities
14 Distance from MAHOFIN Branch
15 Documents provided for Technical
Valuation
16 Provision of electricity meter Yes/No
17 Source of water Municipal
council/corporation/bore-
Boundaries Details
Boundaries East
1 As per Documents
2 As per site/Actual
3 Boundaries Matching
Land/Building Approval Details
1 Approved Plan provided Yes/No
2 Approved Plan No. and Date
Page 46 of
May
3 If plans not available, then is the Yes/No
structure confirming to the local
byelaws
4 Commencement Certificate Provided Yes/No
Yes/No
5 Commencement Certificate No and
Date
6 Occupancy Certificate available Yes/No
7 Occupancy Certificate Date and No.
8 Approving Authority Name
9 Whether Layout plan approved Yes/No
10 Whether approving authority is
authorised to approve the building
plan under TP Act
11 Whether property is on Non- Yes/No
Agricultural Land
12 Non-Agricultural permission given
by whom
13 Documents collected for Non- e.g. Residential Zone Certificate issue
Agricultural permission
14 Violation Observed, if any Vertical/Horizontal (in %)
If property is not independent house, Yes/No
is property falls within deviated
Structure Details
1 Type of Structure RCC/Load Bearing, etc
2 Type of Roofing and terracing
3 Height of the Building
4 Height of the Unit proposed for funding
5 No.of Floors
6 No.of Wings
7 No.of Units per floor
8 Provision of lift is done (applicable If Yes, number of lifts
for multi-storeyed building)
9 Is setback provision done Yes/No
Setbacks / Margin in the Building (in Front
Ft)
As per sanctioned/ permissible byelaws
As per Site / Actual
10 Age of the property
11 Estimated Future Life/Residual Age
12 Whether building located on main or
arterial road
13 Approach road to property and its Concrete road/Mud road/Tar road/WBM
width road/Interlocked
14 Stage of Construction
15 Stage of Recommendation
16 Quality of Construction
Page 47 of 51
May 2020
17 Appearance& Maintenance of the
Property
18 Amenities, if any
19 Any Internal Modification done, if
yes remarks
20 Nature of Land/Plot Freehold/Leasehold
21 Plot Demarcation Yes/No
22 Property Constructed by Builder/Individual/Government
Authority/Any other
23 Property Falling within limits of Gram Panchayat/Municipal Limits
24 Property Identifiable Yes/No/with help of contact person
25 Type of Locality Residential/Commercial/Industrial/Mixed
Valuation Details
1 Adopted method of Valuation
2 Land Area
3 Carpet Area as per Plan (Sq. ft)
4 Carpet Area as per Agreement (sq. ft)
5 Carpet Area as per measurement (sq. ft)
6 Loading considered
7 Super built up area of the unit
8 Area considered for Valuation
9 Total Construction Cost of the Building
10 Building Value based on current stage
of construction
11 Cost of the constructions done in last
6 months for Refinance Case
12 No.of car Parks
13 Market Value of the property
14 Government Guidelines Value
15 Distress Value of the property
National Disaster Management Authority (NDMA) Parameters
1 Seismic Zone Details
2 Structure Type
3 Footing Type
4 Roof Type
5 Type of Masonry
6 Soil Type
Demolition Risk if any with reasons Low/Medium/High
Additional Details
if any
1 Court Orders/Public Notices, if any
2 Whether property is in Sensitive
Area/Concentrated area
3 If construction work stopped,
give details
4 Co. Ordinates (Latitude and Longitude)
Page 48 of 51
May 2020
5 Distances from High Tension Electric
Line/ Railway track / water body / High
Tide Line / graveyard, Cemetery, etc –
If within vicinity of 500 metres
Route Map of the Property (Along with Latitude & Longitude of property)
Property Photographs
1 External view of building (2 photos)
2 View of main entrance door
3 Kitchen, Living Room,Bath,WC
4 Approach road view
Page 49 of 51
May 2020
Annexure 7:Vendor Empanelment Checklist
Parameter Description Available/U Remarks /Any

navailable deviation taken
Minimum 25 years
Age
Application/R
equest Letter
Educational Bachelor’s degree in Civil Engineering /
QualificationArchitecture / Town Planning or equivalent
Experience Minimum 3 years of work experience in the
field of valuation.
Set-Up Should have a professional set-up for
the execution of the required activity
Association/ Should have been providing servicing to at least 3
Empanelmen Banks/ FI operating in the similar line of business
t for which the required is being raised
PAN Card Mandatory
GST Number Mandatory to have a GST Number, if applicable
or declaration for non-applicability
References Vendors need to submit at least 3
reference letters and banks/FI need to verify the
quality of services provided by the vendor
CIBIL Mandatory and should be positive, CIBIL Score
to be above 600.
FCU Check of Mandatory & should be positive
Profile and
Documents
Other Norms In addition to the above, the other conditions
to be fulfilled by the vendor/ service provider
for empanelment are as under
The vendor should be a citizen of India
The vendor has not been removed /
dismissed from service (previous employment)
The vendor has not been convicted of any
offence and sentenced to a term of
The vendor is not an un-discharged insolvent
The vendor has not been convicted of an
offence connected with any proceeding under
the income TAX Act 1961, or Gift Tax Act 1958
There are no criminal or civil cases pending
or registered against the vendor in any court
KYC KYC documents as per existing KYC Policy of
Documents MAHOFIN
Deviation Any deviation from above mentioned norms to
be approved by Head – Credit
Membership Institution of Valuers (IOV)
Norm Institution of Surveyors (Valuation Branch) (IOS)
It shall be Institution of Government Approved Valuers
Page 50 of 51
May 2020
necessary (IGAV)
that every Practicing Valuers Association of India (PVAI)
Valuer Centre for Valuation Studies, Research and
empanelled Training (CVSRT)
by MAHOFIN Royal Institute of Chartered Surveyors, India
to be a Chapter (RICS)
member of American Society of Appraisers, JSA (ASA)
any one of Appraisal Institute, USA (AI)
the
mentioned
associations
namely:
Page 51 of 51
May 2020

Policy On Valuation & Appointment of Valuers

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Policy On Valuation & Appointment of Valuers

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MANAPPURAM HOME FINANCE LIMITED

Consolidated Policy on valuation & Appointment of Valuers

Process for any modification/revision Sign off by Board of Directors will

The Technical Valuation verification is a two-stage

The International Assets Valuation Standard Committee defines Market

B. Methods of valuation for immovable

2. Income approach to valuation

3. Summation or Cost method

4. Development or Residual Method of Valuation

3. Super built up area/Saleable area

4. Floor Area ration (FAR)/ floor space index (FSI)

Features of Load Bearing Construction:

 Cost of construction is lower

For every city/town, the town-planning department prepares a plan earmarking

Following are the types of

 Town Planning Department

H. Vendor Empanelment-Guidelines and

Membership Norm for Technical

Bachelor’s degree in Civil Engineering / 2 Year’s work experience in

Master’s degree in Valuation 2 Year’s work experience in

Standard Letter of Empanelment – Technical

Following aspects are to be well defined in the Empanelment

 Activities covered under the scope of the empanelment letter.

Initiation and Receipt of Valuation report/Appointment of Technical Vendors

Initiation of Valuation Report to vendor

Particulars To be Triggered OTC Responsibility Verified by

 Property to be funded needs to be located within specified locations as stipulated in

Guidelines for Valuers

Maximum age of property can be 60 years at loan maturity subject to

If no. of Units in a particular housing project is up to 8 units, then exposure can

The properties mentioned below will not be considered as acceptable collateral

 Cinema Halls, Hotels and Restaurants

However, ready possession commercial property purchase can be funded at all

L.. Factors Governing acceptability of

Geographic location (Remoteness) of Collateral

In addition, while taking photographs at property site, surrounding area showing

 Building Plan – Approved Plan by MC or DA or TCP (in case of under construction

N . Additional guidelines for various

 Approvals: Non-agricultural conversion, layout Approval of Town Planning

Home Extension, Renovation/ Repair

Directly Allotted Properties by Government Authority (Only by Allotment):

 In case of allotment by government Agencies to 1st allottee, there is no need of

Stage & Disbursement % Matrix for Construction Cases

Load Bearing Structure – Ground Floor Structure

1. The stages described above are representative for standard construction

Sr. No. Type of Property Minimum Stage of

Deviation in Disbursement amount against stage of

Example of disbursement deviations is illustrated

O. Note for spoke

Process Mahila/Micro LAP Cases Normal Cases

Technical Valuation Technical Valuations, to be done Two Valuation must be done by

Valuation has to be done by Two Technical Report is mandatory

Valuation Report is mandatory

P. APF Process and

APF is the pre-approval of multi-unit projects other than those developed by

(List of documents to be collected mentioned in

If no. of Units in a particular housing project is up to 8 units, we propose to increase the

Past Projects (Weightage 40%)

Q. Guidelines for Funding Gram Panchayat Properties: