7.

1 HOUSING LOAN POLICY

7.1.1 Object of the Scheme

7.1.2 Eligibility

7.1.3 Purpose for which housing loan can be granted

7.1.4 Quantum of loan

7.1.5 Joint Housing Loan

7.1.6 Repeat Housing Loan

7.1.7 Loan for repair / renovations of flat/house

7.1.8 Interest on Loan

7.1.9 Securities, Insurance etc

7.1.10 Disbursement of loan

7.1.11 Repayment and Recovery

7.1.12 Transfer of housing loan

7.1.13 Additional loan from financial institutions etc. through second

mortgage

7.1.14 Transfer of outstanding Housing Loan from Financial Institutions to

HPCL

7.1.15 Terms and conditions related to Revision in Housing Loan

entitlements effective August 1, 2017
7.1.16 Online Housing Loan Application Process

7.1.17 Salient features and Process Flow : Online Housing Loan Module

7.1.18 HRA status

7.1.19 Alienation, transfer, letting out, licensing or disposal of the property,

house, tenement or flat by the borrower

7.1.20. General Conditions

7.1 HOUSING LOAN POLICY

7.1.1 Object of the Scheme

1. The Corporation has introduced a scheme for the grant of housing loan
to its employees as a welfare measure. This scheme is subject to review
from time to time and subject to availability of funds. For implementing
this scheme, the Corporation has framed the following rules and
regulations (hereinafter referred to as the Rules) setting out the basic
conditions of eligibility and other requirements to be complied with for
grant of housing loan.

2. The Rules set out hereunder covering this scheme are framed and laid
down to implement what is solely a welfare measure and do not confer
any right or benefit on the employees nor do they impose any obligation
or liability on the Corporation and shall not be deemed to be any contract
or condition of service between the Corporation and any of its
employees except when a loan has actually been granted by the
Corporation.

3. The grant of housing loan under this scheme shall be at the absolute
discretion of the Corporation and subject to availability of funds. The
Corporation reserves the right either to totally abrogate or temporarily
suspend the scheme and repeat or modify the rules at any time and
without assigning any reason whatsoever. The Corporation may,
however, within the limitation of the funds, if any, available for the
purpose of implementation of the scheme continue such welfare
measure on long term basis without any legal obligation to do so.

7.1.2 Eligibility

Housing Loan for the purposes defined in these rule may be granted by the
Corporation in its sole discretion without any legal obligation to do so to any
of the permanent employees who have completed 3 years of confirmed
service with the Corporation and who in the Corporation's assessment are
able to repay the loan through the deductions from the salary within the
prescribed time limit without causing undue reduction in the take home pay
as detailed under 'Notes' in clause 7.1.4.

Effective August 01, 2017, the eligibility criteria for grant of housing loan has
been revised to 3 years of confirmed service for all employees.

I. For the purpose of eligibility for housing loan in terms of number of

years' service, 100% credit will be given to employees joining from
other PSUs/Central/ State Government Departments for the total
past service rendered by them in such PSUs / Central /State Govt.
 Departments immediately prior to joining HPCL, provided there is no
break in the service. This will be subject to a minimum service of one
year or confirmation in service in HPCL, whichever is later.

In the case of ex-servicemen, for arriving at their eligibility for housing

loan in terms of number of years' service, 100% credit would be given
for their service in the Indian Armed Forces (Army, Navy, Air Force).
This will be subject to a minimum service of one year or confirmation
in service in HPCL, whichever is later.

The grant of housing loan will be permissible to employees who have

already availed of housing loan with the previous Public Sector
Undertaking / Government Department where they were employed
subject to the following conditions:-

a) Documentary proof is produced for having availed of housing

loan with the previous PSU / Government Department where
he / she was employed.

b) Documentary proof for having cleared the loan with the

terminal benefits received from his previous employer or
through other sources.

c) The loan entitlement will be as per HPCL subject to availability

of balance service.

II. An employee will also be eligible for housing loan once in his/her
service period :

- if the employee, spouse and / or his / her / their minor children

inherits ancestral property

- or own a house / flat in full in his / her / their own right, individually
or jointly

- provided the new property proposed to be purchased/ acquired

thru Corporation's housing loan is in another city/ town other than
the city / town of the existing inherited / acquired property.

III. In cases where both husband and wife are the employees of the
Corporation and are otherwise eligible for grant of housing loan, the
loan shall be admissible only to one of them irrespective of anything
to the contrary contained herein.

IV. Housing Loan would not generally be admissible to employees who

are under suspension and / or under contemplated disciplinary action
 till the enquiry proceedings are completed and the disciplinary order
is issued.

However, after grant of the housing loan if such employee is under

suspension or any disciplinary action is contemplated against the
employee, the monthly deductions as determined by the Corporation
will continue to be recovered from the subsistence allowance
payable to the suspended employee or his monthly wages payable
to him. No repeat / repair & renovation / transfer loan will be granted
till the receipt of Disciplinary Authority's Order (DA's Order).

V. Housing Loan will not be admissible for purchase of land/house/flat

from close relative as indicated in Annexure I.

Notes :

1) If an employee after availing housing loan is unable to utilise the loan

for the purpose for which it was availed due to reasons proved to the
Corporation as beyond the control of the employee, such an
employee may be allowed to refund the housing loan already availed
in one lump sum with interest.

The rate of interest will be the same as applicable to the loan, within
a period of 30 days from the date of last disbursal of the loan, failing
which the employee will be charged penal rate of interest @ bank
borrowing rate plus 1% as specified by the Corporation for the period
commencing date of disbursement of last instalment and date of
repayment by the employee to the Corporation. In such a case no
fresh housing loan request from the employee will be considered until
finalization of deal with evidence.

2) Housing Loan already availed for a particular house/flat may be

transferred for purchase of another house/flat either at the same
location or at any other location on terms and conditions specified in
Section 7.1.11.

7.1.3 Purpose for which housing loan can be granted

A loan, subject to availability of funds, and other considerations of eligibility

etc. may be granted by the Corporation in its sole discretion, for the
following purposes :

1. Acquisition / purchase of land (freehold/leasehold) and construction of a

house or tenement thereon.

2. Construction of a house/ tenement on land already owned or purchased by

the employee or acquired on long term lease in favour of the employee. In
 case of lease hold land, the residual unexpired lease period thereof may be
minimum 25 years as on the date of sanction of the loan.

3. Acquisition or purchase of a house/ tenement already constructed and

ready for occupation.

4. Extension, enlargement and / or modification of a house/ flat owned by the

employee.

5. Acquisition or purchase of ownership tenement or flat in a co-operative

society (whether existing or proposed) or limited company or CIDCO, DDA/
Housing Board/ Housing Development Authority ; the borrower / Society /
Company is responsible to meet all the Rules / conditions/ terms etc.
prescribed by the Corporation in this behalf.

6. Housing Loan under this scheme shall not be admissible for purchase
/construction of a thatched / 'kutcha' house.

Notes :

1. Housing Loan will not be granted solely for the purpose of purchasing land.

2. It is always understood that the loan assistance which is intended solely for
housing purposes and the accommodation /land which is acquired / built/
extended will not be used for any purpose other than residential.

3. The clauses given under 7.1.3 above do not contain any restrictions
regarding the person, company or society who is the vendor or who
constructs the building , tenement or flat unless otherwise specified and is
merely descriptive of the nature of premises which would be acquired or
purchased by the employee, the underlying idea being that the borrower
employee should have unencumbered and clear marketable title to the
property that is being acquired/ created through the loan assistance and
which has to be mortgaged with the Corporation.

7.1.4 Quantum of Loan

The amount of loan that may be granted by the Corporation to any

employee under these Rules will be on the basis given below, which shall
serve only as a guideline and shall not be construed as any commitment on
the part of the Corporation.

i. For the purpose of other than extension / enlargement /

modification of already owned house, the entitlement for the
quantum loan will be the lowest of the following :-
  The actual cost of purchase/acquisition price of land/house
and/or the construction of the house/flat tenement.

 100 times Basic salary plus DA.

 Grade-wise entitlement effective August 1,2017 as given below:-

Grade Entitlement ( ₹/Lakhs)

Non Management 32
Management
E1 & E2 36
A to C 40
D to F 48
G & above 56

ii. For extension / enlargement and / or modification of house/ flat /

tenement already owned by the employee thru his/her funds,
housing loan will be as per grade ceilings prescribed as above or
actual cost of extension / enlargement, whichever is less, subject to
balance service.

Notes :

1. For the purpose of computing the value /cost /price determining the actual
amount of the advance to be sanctioned by the Corporation for any of the
above purposes, the employee shall submit to the Corporation legal
document for purchase of land/ house/ tenement and approved plans for
construction and detailed specifications, and estimates by architects or
contractors' bills, and other documents that may be required to be furnished
by the employee to justify fully the amount of the loan applied for. The
decision of the Corporation regarding the value/price /cost and the amount
of loan to be sanctioned shall be final and binding on the employee.

2. The Housing Loan will be granted as per eligibility and will be regulated in
such a manner, that the net take home pay after taking in to account all the
existing recoveries including the monthly Housing Loan recovery and other
loan facilities of the Corporation is not less than 35% of the gross salary
excluding the amount of shift allowance etc. paid along with the salary.

3. In case of under construction, the loan will be disbursed in instalments,

keeping in mind the construction progress, subject to the limits set out
above.
 4. Where a loan is disbursed prior to actual expenditure and the expenditure
is less than the loan amount disbursed, the difference will be adjusted
against future instalment.

Payment of Stamp Duty/Registration charges etc. – beyond Housing

Loan ceiling

Payment of expenses incurred towards statutory payments and taxes like

Stamp Duty, Registration charges, Service Tax, Registration of Mortgage,
Purchase Tax, VAT etc. is revised up to a maximum of 10% of Housing
Loan entitlement (limited to amount availed) or Actuals, whichever is less.
This is over and above Housing Loan entitlements.

The payment of the same will be regulated based on receipts.

7.1.5 Housing Loan with respect of Joint Ownership with Spouse

Housing loan will also be granted in cases where the property is jointly
registered / owned with the spouse, subject to following:-

1. The flat / housing property to be acquired / purchased / constructed is

in the name of employee and his / her spouse where the housing
property is free of any encumbrance and neither of the spouses has
any outstanding loan for the property from any Bank or Financial
Institution. The property in these cases will be jointly mortgaged by the
employee and the spouse in favour of the Corporation.

2. In addition, following additional documents will be required to be

executed by employee and spouse while applying for Housing Loan:-

 Joint Housing Loan Agreement between Corporation and employee

and spouse (Tripartite Agreement). (To be Notarised)

 Submission of Title Deed in the joint name of Employee and Spouse.

 Declaration regarding Mortgage jointly by employee and spouse. (To

be given on Legal Paper)

 Power of Attorney in favour of the Corporation to be taken from spouse

separately, having clause stating that any Share Certificate in the name
of spouse also to be handed over to Corporation. (To be Notarised)
7.1.6 Repeat Housing Loan

1. Eligibility :

Repeat housing loan is admissible after a period of five years from the date
of sanction of the previous housing loan. This is a one time facility during
one's service of the Corporation.

Repeat Housing Loan will be granted to employees without insisting on the

sale of the house / flat / tenement, inherited / acquired / purchased through
their own funds, provided the new property purchased should not be in the
same city where he / she already owns a house i.e. beyond the municipal
limit of the existing property.

However there is no change in the policy for employees who have

purchased the house / flat with the assistance of Corporation’s Housing
Loan. The property purchased through housing loan has to be disposed off
to become eligible for repeat housing loan.

2. Quantum of Loan :

a. For acquisition of new property :

In case of acquisition of new property, the quantum of loan of repeat

housing loan will be limited to the following :-

- difference between the employee's current maximum housing

loan entitlement and the amount of housing loan granted
earlier(including any repair and Maintenance loan) plus the
outstanding housing loan and interest refunded by the employee
in lumpsum

- or the cost of new property

- or 100 times Basic + DA

- or the revised ceiling limit

whichever is less, subject to balance service available /

Terminal Benefits.

For the above purpose, employee will be required to sell the

house / flat purchased with the loan assistance from the
Corporation, after obtaining NOC from the Corporation.
 Post documentary evidence i.e. registered document with regard to
the sale of old house / flat / tenement / property shall be furnished to
the Corporation along with the application / request for repeat
housing loan and other documents as per checklists.

The employee, out of the sale proceeds of the old unit, shall repay to
the Corporation the entire housing loan outstanding principal and
accrued interest as on the date of such repayment to the
Corporation.

The above formalities should be completed within 6 months from the

date of issue of NOC.

b. For extension / enlargement of existing house acquired thru

Corporation housing loan :

Housing loan is also granted for extension / enlargement /

modification of the existing house provided employee has completed
period of five years from the date of sanction of the previous housing
loan on the following grounds :-

 For extending the carpet area of the existing house acquired

through own funds.

 For purchase of adjacent / adjoining flat.

 For extending / enlarging the house acquired through housing

loan under repeat housing loan.

In case of employees who have acquired the house/flat thru

Corporation's housing loan and wish to further extend / enlarge /
modify the existing house/flat, the quantum of repeat housing loan
will be limited to the difference between the employee's current
maximum housing loan entitlement i.e.E1/E2 = r 36 lakhs, A/B/C = r
40 lakhs, D/E/F = r 48 lakhs and G & above r 56 lakhs and the
amount of the housing loan drawn / sanctioned earlier or the cost of
extension/ enlargement , whichever is less.

The employee will submit the proposal along with the approved plan
of construction from the competent authority and the supporting
documents as per checklist.

If the employee is not able to complete the formalities within 6

months from the date of issue of NOC due to unavoidable
circumstances, further extension of 3 months shall be given. No
 further extension will be granted after a lapse of 9 months from the
date of issue of NOC.

If an employee intends to extend the existing house / modify the

dwelling unit acquired through own funds or purchase the adjacent
flat, he is eligible for housing loan as per his entitlement, provided
the dwelling unit is exclusively in the name of the employee.

7.1.7 Loan for Repair / Renovation of the flat / house :

An additional housing loan towards major repairs / renovation of the flat /

house purchased either with the assistance of the Corporation’s Housing
Loan or through their own funds, will be granted as mentioned below, which
will be in addition to the housing loan entitlement :-

Non Management employees : r 2.0 lakhs

Management Employees :

- S.G. ‘E1’ to ‘C‘ : r 2.5 lakhs

- S.G. ‘D’ to ‘F’ : r 3.0 lakhs
- S.G. ‘G’ & Above : r 3.5 lakhs

The eligibility period for grant of the above loan will be as follows :-

- on completion of 5 years from the date of availing fresh loan / repeat

housing loan.

- on completion of 3 years of confirmed service in the Corporation, in

case of employees who have not availed any housing loan from the
Corporation but have a flat / house (which is minimum 5 years old)
solely in his / her name.

Housing Loan towards repairs and renovation will be permitted only once
in the entire service period of the employee. Employees who further
intend/desire to avail housing loan for extension / enlargement / modification
under repeat housing loan, the differential amount will be granted within the
housing loan entitlement after adjusting the loan for repairs/renovation, if
availed.

Interest will be applicable as given in point 7.1.7.

Employee would be required to make payment to the Contractor or utilise

the amount disbursed for repair and renovation within a period of 60 days
from the date of sanction of repair and renovation and produce the
 documentary evidence of having utilised the amount failing which the
disbursed amount will attract penal interest.

7.1.8 Interest on Loan :

1. Rate of interest on the total Housing Loan will be at par with the
Company’s average cost of borrowing for the previous year effective
01.04.2012. Consequently there will be no loading of housing loan
perquisites under the cafeteria policy.

2. Interest will be charged on the outstanding balance on the last day

of each month provided such outstanding is more than 15 days in
each month and will be calculated from the date of receipt of cheque
by the employee. The date of receipt shall be as indicated in the
Promissory Note executed by the employee while receiving the
cheque.

3. The borrower employee will be charged penal interest which will be

1% over the Corporation's borrowing rate as applicable to its cash
credit account with State Bank of India from time to time if the loan is
not utilised in the time and / or for the purpose for which it is granted
or if there be any breach by the employee of any of these Rules or
other conditions or terms, etc prescribed by the Corporation in the
context of grant of housing loans.

4. An employee is required to make payments to the concerned party

(builder / contractor / owner/ Government / Housing Board) within 30
days of receipt of an instalment of housing loan. For delays in
payment beyond 30 days, employees would be charged penal
interest as specified above.

In cases where the employee is constructing his own house, he

would be required to make payments to the contractors/ suppliers
within 60 days of receipt of the cheque. Failure to make payments
within 60 days of receipt would attract penal interest as given above.

Such penal interest would be calculated for the period of delay

beyond the stipulated period mentioned above and would be added
to the total interest accrued on housing loan.
7.1.9 Securities, Insurance etc :

1. No loan assistance will be granted by the Corporation to any

employee in the manner referred to above, until and unless
appropriate security is lodged with the Corporation in the manner and
form determined by it from time to time. For this purpose, the
Corporation will demand and the employee shall make available in
time the securities/mortgages, covenants etc. as listed in 3 below or
may be executed by such employees in such form and manner as
may be prescribed by the Corporation or required by the
Corporations' legal advisors from time to time and the Corporation
will not be obliged to disburse any amount of such loan assistance
till such mortgage and security documents are duly executed and all
other conditions and formalities duly complied within that behalf, to
the satisfaction of the Corporation.

2. In case the plot of land on which a house or tenement would be

constructed is of a lease hold tenure, the employee /Co-operative
Housing Society will obtain the prior written consent of the Lessors
for the purpose of mortgaging the right, title and interest of the lessee
in favour of the Corporation and will also satisfy the Corporation that
the lease is valid and subsisting and residual unexpired period
thereof is for a minimum of 30 years, so that the security for
repayment of the loan is not affected in any manner detrimental to
the Corporation's interest.

3. Without prejudicing the right of the Corporation to prescribe

additional safeguards, the forms of securities required by the
Corporation may be as under :

i. Registration of the Agreement for Sale would be compulsory

in all cases except in case of :

o Direct purchase from CIDCO/ DDA/ Government /

other Housing Board cases as registration will be done
as per the guidelines of Govt. body.

o Purchase of ready built house wherein the registration

of sale deed will be done after full payment to the seller.

ii. Equitable mortgage and deposit of title deeds, with the

Corporation of the entire immovable property including the
lands, buildings, houses and / or tenements constructed or
to be constructed thereon with the assistance of such loan in
order to fully secure the principal amount of the loan, interest
 and all other costs, charges and expenses at all times during
the envisaged currency of the loan.

iii. Equitable mortgage and deposit of title deeds with the

Corporation, of the house and /or tenements to which any
enlargement or extension has been or would be undertaken
with the aid of such loan assistance and of all the rights, title
and interest of the employee therein so that the enforceable
and divisible security is created in favour of the Corporation to
secure due repayment of such loan, interest costs, charges
and expenses.

iv. In addition to the mortgage security documents and deposit of

title deeds, etc. a personal covenant on stamped paper to
repay the loan, interest and costs, charges and expenses as
determined by the Corporation, shall be given by the
employee which will be binding on his/ her heirs, executors,
administrators, legal representatives and assigns
respectively. This covenant shall include a provision whereby
the employee shall undertake that the loan shall be refunded
in one instalment along with penal rate of interest as specified
above and other costs, charges etc as determined by the
Corporation in case the same is not utilized for the purpose
granted in the time prescribed by the Corporation or if there
be any breach of these Rules, etc. by the employee.

v. Before disbursement of loan the employee shall, on stamp

paper, create in favour of the Corporation the first and
paramount charge and lien on all the dues of the borrower
employee including wages and salaries, dearness
allowances, bonus, retirement benefits including PF, Gratuity
and any other payments including gratuity and any other
payments including rent or compensation if the house is
rented or given on leave and licence, etc. The employee will
execute necessary documents to this effect simultaneously
with the mortgage documents.

vi. In the event of purchase of ownership flats/ tenements the

promoters' agreement, the title deed , the share certificate and
all other documents will be obtained jointly in favour of the
Corporation (being the first name ) and the employee will be
duly registered with the Co-operative Society or the Limited
Company as the case may be, so as to duly record the rights
of the Corporation, and appropriate undertaking transfer
norms and other writings will be executed in favour of the
Corporation , authorizing the Corporation to sell or dispose off
 the same in the event of any breach or default. In such cases
the joint purchase of the ownership flat would be in
accordance with the agreement with the promoters approved
by the Corporation and the Corporation or its designated
nominee will be the first names purchaser/ member. In case
of purchase of individual flats in Co-operative Societies the
mortgage requirements as stated above can be modified by
the Finance Director after safeguarding the interests of the
Corporation.

vii. An employee who has been granted Housing Loan has to

compulsorily enroll himself under outstanding Housing Loan
Insurance Scheme underwritten by Life Insurance
Corporation of India Ltd. The premium amount will be
calculated in line with the rates of LIC and recovered through
payroll towards the subject policy on monthly basis.

The advantage of this scheme is that in case of eventuality of

death of the borrower employee the beneficiary of the
borrower will be fully protected against the payment of
outstanding housing loan amount including interest taken
from corporation.

viii. The property including the land house/tenement acquired

/built with loan assistance by the employee is insured under
the Standard Fire & Special Perils Policy underwritten by New
India Assurance Co. Ltd. The premium is calculated in line
with the rates quoted by NIA and recovered through payroll.
The policy is renewed every year in June and the premium is
deducted on annual basis.

Employees who desires to insure the house/flat on their own

shall fully insure against fire, lightning, riots, earthquake,
terrorist attack and other risks as prescribed by the
Corporation from time to time for the value thereof (but not
less than the loan amount) by the employee and during the
currency of the loan, such insurance shall be maintained for
an amount which shall not be less than the outstanding
amount of the principal loan and interest due thereon. The
Insurance Policy shall be duly assigned in favour of the
Corporation and such assignment will be registered with the
approved Insurance Company and the policy so assigned
shall be deposited with the Corporation. The premium
receipts for securing and maintaining the policy will be
delivered to the Corporation by the employee in the time
schedule prescribed by the Corporation. The original policy
 duly assigned in favour of the Corporation and the
endorsements by way of periodic renewal will be deposited by
the employee with the Corporation, so long as the loan or part
thereof or any interest is outstanding.

Note :

1. In respect of any one or more of the forms of joint securities

referred to above, appropriate undertakings will be given to the
effect that the legal and/or physical possession of the mortgage
security will be handed over by the employee to the Corporation
and/or to any receiver appointed by the Corporation in
enforcement of the security, and that such premises shall be
deemed to be Corporation premises or public premises for the
purpose of Public Premises (Eviction of Unauthorized Occupants
) Act 1971 or any other statutory enactment or modification in
relation thereto for the time being in force and that the
Corporation will, without prejudice to its rights and remedies, be
entitled to take proceedings for eviction under the provisions of
the said Act against the Borrower employees at the company's
discretion.

2. In the case of flats in Co-operative Societies, the mortgage

requirements will be modified suitably by the Corporation in its
discretion to safeguard the interests of the Corporation. It is
always understood that the employee shall be bound to ensure
that the Co-operative Society meets with the Corporation's
requirements and in the event of the Society's failure to do so it
shall constitute a breach of the Rules, by the employee.

7.1.10 Disbursement of loan

1. As far as possible the loan will be disbursed in instalments keeping

in view the projected expenditure/ expenditure incurred for the
purpose as well as the need to build up adequate securities and
insurance to safeguard Corporation's interests.

2. For the purpose of disbursement of the sanctioned loan, the

Corporation will follow the schedule set out in Annexure II without in
any way fettering the right or discretion of the Corporation to vary or
modify the disbursement schedule in any case for the purpose of
properly securing the loan. The Corporation will, wherever possible,
taking in to account the circumstances of each case, prescribe the
time schedule to be set by the employee in the acquisition
/construction / extension of the house/ flat/tenement.
 3. For the purpose of satisfying the Corporation that the various stages
of disbursements determined by it have been reached, the employee
shall submit to the Corporation, such certificates, legal documents
and proof of admissibility of disbursement as may be stipulated from
time to time by the Corporation and only after satisfactory proof is
produced the Corporation will proceed to disburse the sanctioned
amount or part thereof.

7.1.11 Repayment and Recovery :

i. The loan granted to the employee under these rules together with
interest thereon shall be repaid in full by monthly instalments within
a period not exceeding 25 years. Firstly, the recovery of the principal
housing loan shall be made in not more than 240 monthly instalments
and then interest shall be recovered in not more than 60 monthly
instalments.

ii. In cases where housing loan deduction does not take place due to
inadequate take-home salary penal rate of interest on outstanding
housing loan would be charged for the months in which housing loan
deduction does not take place.

iii. Part payment towards the housing loan subject to a minimum of r

50,000/- or in multiples of r 50,000/- is permitted.

Note :

1. In order to avoid undue hardship to employee who is due to retire

within 25 years of the date of application for the grant of a loan, the
Corporation may permit him to repay the advance with interest in
convenient monthly instalments during the remaining period of his
service, provided the employee agrees to incorporate a suitable
clause in the prescribed agreement and mortgage deed form to the
effect. The Corporation shall be entitled to recover the balance for
the said loan together with interest remaining unpaid at the time of
his retirement or death preceding retirement wholly or in part from
the terminal benefits that may be payable to the employee.

2. The Corporation will fix the equated monthly instalments payable by

the employee at the time of disbursement of the loan or at such other
time or times as the Corporation may determine and the
Corporation's decision on that behalf shall be final and binding on the
employee.
3. The repayment of the loan and interest, in monthly instalments, shall
commence from the month following the prescribed date of
completion of the house, tenement, or flat or extention / enlargement
of a house / tenement owned by the employee (irrespective of the
occupation thereof or not) or immediately on expiry of the eighteenth
month after the date on which the first instalment of the loan is
disbursed, whichever is earlier.

4. In case the loan is given in one lumpsum for the purpose of purchase
/ acquisition of a constructed or ready - for occupation house or
tenement or flat, the repayment by monthly instalments shall
commence effective the month immediately following the month in
which the loan is disbursed.

5. In case of any employee who is on unauthorized leave or under legal

litigation, the repayment and recovery of the housing loan, interest,
costs, charges and expenses shall be effected by deduction at
source from the monthly pay/ leave salary / other allowances and
dues of the concerned borrower employee. For this purpose interest
for the entire period shall be calculated in advance at such rates as
are prescribed.

6. If the concerned employee ceases to be in the service of the

Corporation for any reason or retires prematurely or resigns or his
services are terminated by the Corporation before the recovery of the
loan together with interest, costs, charges and expenses is
completed then the entire outstanding amount thereof (hereinafter
referred to as "the amount") shall become payable by the employee
to the Corporation in one lumpsum immediately upon the happening
of any such event and the (ex) employee shall, on demand and in
any case within 15 days of the event, pay all such sums and in the
event of failure of the employee to so pay the amount to the
Corporation then it shall be entitled to enforce the mortgage/ security
and take such other action(s) to effect recovery of the amount as the
Corporation may deem fit, including withholding of sums which may
otherwise be due to the employee from the Corporation.

7. Since the deceased employee is covered under the outstanding

Housing Loan Insurance Scheme of the Corporation irrespective of
the employment status of the employee's spouse, the insured
amount of the outstanding Housing Loan would be settled by LIC and
the balance loan plus accrued interest if any, would be recovered
from the terminal benefits of the deceased employee.
 8. Without prejudice to the Corporation's other rights under these
Rules, the Corporation shall always have the right to withhold the
whole or any part of the terminal dues of the employee (excluding
PF) or any other sum of money otherwise payable by the Corporation
to the employee or to his estate by way of compensation, separation
benefit or otherwise and apply the same towards repayment of the
loan and interest.

9. Notwithstanding what is stated elsewhere herein, in the event of any

default or breach of any of these Rules or other conditions or terms
prescribed by the Corporation or covenants or undertakings given by
the employee or any provision of the mortgage/ security documents,
the Corporation shall be entitled to enforce its security at any time
thereafter and recover the balance outstanding of the loan together
with penal rate of interest from the date of disbursement of the loan
and, all other costs, charges and expenses connected with the grant
of loan , in one instalment and the entire amount shall, in such a case
become immediately due and payable to the Corporation on the
happening of any such breach and the Corporation shall , without
affecting any other remedy open to it under law, be free to set off any
dues to the employee against this amount.

10. The Corporation will be bound to re-convey and release the

mortgage / security and other documents provided by the employee
only after all the dues of the Corporation are fully repaid and not till
then and the Corporation shall be the sole judge in this regard.

7.1.12 Transfer of housing Loan :

1. An employee may be permitted to transfer housing loan availed for a

particular house/ flat/ tenement to another house/ flat / tenement by
disposing off the existing residential unit.

2. Transfer of housing loan would be permitted only once during the

service of the employee with the Corporation.

3. Transfer of housing loan would be permitted subject to the employee

satisfying the following :

i. The Corporation will grant provisional NOC for release of

mortgage in respect of the old unit for which the original
housing loan was granted.

ii. The employee, out of the sale proceeds of the old unit shall
repay to the Corporation the entire housing loan outstanding
 along with accrued interest standing in his account as of the
date of such repayment by the employee to the Corporation.

iii The employee will submit request for transfer of housing loan
i.e. purchase of new residential house along with the relevant
documents concerning the sale of the old house for which the
earlier loan was granted by the Corporation.

iv. The employee may be disbursed transfer loan after taking into
consideration the sale proceeds of the old unit and purchase
price of the new unit, which will be restricted to the amount
repaid by him (i.e. the principal amount of outstanding loan
plus accrued interest), or difference between the sale
proceeds of old unit and purchase price of the new unit,
whichever is lower.

v. The employee will thereafter repay to the Corporation the

amount of housing loan disbursed and the aggregate accrued
interest i.e. (interest repaid as para (iv) above plus interest
accrued after disbursement of fresh housing loan for purchase
of a new unit) in the balance number of instalments as
originally approved for him or in such a manner to ensure that
the entire amount is recovered during the service of the
employee and from terminal dues payable at the time of his
retirement, as per existing policy.

vi. The employee shall complete all the transactions viz. sale of
his existing unit and purchase of a new unit within a period of
six months from the date of granting the NOC by the
Corporation. The period of NOC may be extended for 3
months, in case he is unable to complete the formalities.

7.1.13 Additional loan from financial institutions etc. through second

mortgage

In addition to the loan already granted by the Corporation employees may

raise additional loan from financial institutions such as HDFC, subject to the
terms and conditions given below :

a. The total housing loan availed from the Corporation, plus the amount of loan
taken from the financial institution shall not exceed the original cost of the
flat/house.

b. The second mortgage, if any, to be created by the employee should not in

any way affect the rights of the Corporation as paramount mortgagee.
 c. The total recovery on account of housing loan granted by the Corporation
with other recoveries normally effected by the Corporation through payroll
shall be such that the residual salary of the employee after such recoveries
is not less than 35% of his gross salary as given in Section 7.1.4 (note) (2).

7.1.14 Transfer of outstanding Housing Loan from Financial Institutions to

HPCL

Employees who have purchased a house / flat by availing housing loan

from financial institutions, before completion of eligibility of 3 years of
confirmed service in the Corporation, will be allowed to transfer the
outstanding housing loan from financial institutions to HPCL after their
eligibility period, on fulfilling the following criteria :-

 The outstanding loan amount of the employee with the financial

institution should be less than or equal to his entitlement on the date of
application for housing loan to the Corporation. Any excess loan over
the entitlement should be paid by the employee to the financial institution
before the sanction of loan.

 The housing loan amount as per the employees’ entitlement will directly
be paid to the financial institution.

 The financial institution will have no lien on the dwelling unit and
employee will mortgage the property in favour of HPCL.

 All the documents, registered Sale Deed will have to be submitted to the
Corporation as per policy.

7.1.15 Terms and conditions related to Revision in Housing Loan

entitlements effective August1, 2017

Release of additional amount towards housing loan due to increase in

entitlements and on account of promotion involving change in the eligibility
will be administered as follows :-

a. The disbursement will be limited to the lower of the following:-

i. Difference between the earlier and the revised loan entitlement.

ii. Outstanding principal plus interest with the financial institution on the
day of disbursal.
 b. Subject to the minimum of clause- a (i) above, in cases where second
mortgage has been created by taking loan from financial
institutions/banks, additional loan amount will be limited to outstanding
principal & interest on the day of disbursal and will be directly paid to
Financial Institutions / Banks, as per extant provisions, irrespective of
situation whether last instalment has been disbursed or not.

c. Where second mortgage / loan from recognized financial institutions

has not been created / taken, the increased entitlement will be
applicable to employees whose last instalment is yet to be released and
also where construction is not completed and flat is not ready for
occupation. In these cases, the release of additional entitlement of loan
will be limited to future balance payment to 3rd party / builder (in case
of purchase of flat / house etc.) and future expenditure (in case of
construction of house). In both instances, the release of additional
entitlement / amount will be limited to original cost of house submitted /
declared at the time of applying for housing loan, subject to clause a(i)
above.

d. As regards additional 10% of housing loan entitlements / availed

amount (whichever is lower) towards payment of Stamp Duty /
Registration charges / Statutory payments, the same will be disbursed
under the loan scheme to the extent of balance payment of Stamp Duty
/ Registration charges / Statutory charges.

e. The last such revision in the Housing Loan entitlement was effective
01.04.2012 and the employees who have already availed the additional
entitlement as per the revision effective 01.04.2012 are now not allowed
to avail the revised entitlement effective August 2017.

7.1.16 Online Housing Loan Application Process

In order to reduce the service delivery time and induce transparency, an on-
line application for Housing Loan under My HPCL –> eCare has been
developed which will enable the employees to apply for housing loan by
providing details of all requisite documentation on selection of desired loan
category and applicable entitlements, in line with extant Policy provisions.

All employees shall submit their applications online for processing by C&B
Hub, through concerned HR. In case of partly disbursed housing loans,
 applications for disbursal of all subsequent installments are also required to
be submitted online.

7.1.17 Salient Features and Process Flow : Online Housing Loan Module

1. The Module includes following functionalities :

a) Housing Loan – New

b) Housing Loan – Subsequent Instalments
c) Extension / Enlargement
d) Repair & Renovation

2. All applications pertaining to above need to be submitted through the

online module only, by all Management & Non-management
employees, effective immediately.

3. Eligible employees shall enter details of their loan application

through link “New Application / Application for Extension /
Enlargement and Repair & Renovation”, as the case may be.

4. Upon submission, the online application is routed to the concerned

HR Functionary for verification. Hard copy of the application and
documents shall be submitted by employees to the concerned HR
Functionary.

5. Upon HR verification, application is forwarded to C&B Hub for review

and approval.

6. Proxies can also apply on behalf of Non-management employees.

7.1.18 HRA Status

An employee shall be required to reside in the house/flat/tenement acquired

with loan assistance from the Corporation if the house/flat /tenement is at
or near his station of posting unless otherwise exempted as per rules of the
Corporation.

The HRA admissible to such employees will be as under :

i. During the period of construction of the house, tenement or flat, the

house rent allowance shall be paid on the basis normally admissible
under the rules of the Corporation as prevailing from time to time and
as applicable to the other employees.

ii. After the completion/ acquisition of the house/ tenement or flat with
the aid of the loan from the Corporation, the housing subsidy will be
 fixed in such a manner as the Corporation may prescribe, from time
to time, through its service conditions or by supplementation of these
Rules or in such other manner as the Corporation may, in its
discretion, think fit and its decision shall be final and binding on the
employee.

iii. If the employee does not occupy the house/flat/ tenement acquired /
constructed with loan assistance and is in the same place of duty
then he shall cease to be eligible for HRA leased housing with effect
from the prescribed date of completion / purchase / acquisition
unless he has been granted exemption by the Competent Authority
under the following circumstances :

a. The employee / spouse / dependent children who has an

interest in a Hindu Undivided Family House, if the house
cannot be divided by metes and bounds, or if so divisible, the
share of the employee or spouse or dependent children does
not constitute a liveable residential unit.

b. The officer is required to occupy a particular house because

of the operational nature of his duty e.g. Chief Installation
Manager, Budge Budge Terminal.

c. The officer who by reason of his /her specific post of a

functional and maintenance nature is required to stay in a
particular housing colony or locality e.g. fire and safety officers
in Mumbai Refinery.

d. The officer is to be provided with Corporation accommodation

in a particular locality / colony as a condition of his service e.g.
Medical Officer in Mumbai Refinery.

iv. The residential unit owned by the officer / spouse / dependent

children is substantially less than his entitlement which would be
determined on the basis of the plinth are being 2/3rd or less of the
ceiling limit of entitled plinth area of the officer as per current
prescribed rules. However, such dispensation will be generally
applicable to very senior officers in salary grade 'E' and above
depending on their job requirements, family size etc.

Explantory Notes :

"At or near their station of posting" would mean that the residential unit is
situated within the limits of the municipality in jurisdiction of which the office
of the employee is situated as well as municipality / municipalities
contiguous to the former.
Competent Authority to grant exemption in relation to para 2 will be
Chairman of the concerned Housing Allotment Committee whose decision
will be final.

House attached to a post / duties of the Functional and maintenance

nature :

It would be the responsibility of the Functional General Manager to provide

in writing to the "Chairman of the Housing Allotment Committee" whose
decision will be final.

House attached to a post / duties of Functional and maintenance

nature :

It would be the responsibility of the Functional General Manager to provide

in writing to the "Chairman of the Housing Allotment Committee" in regard
to houses which are attached to a particular post and also particulars of post
/ designation, nature of duties whether operational or maintenance. Without
such information/ recommendation, the competent authority will not grant
exemption.

Plinth area entitlement of an officer :

As per current rules the ceiling of built-up area for different grade of officers
are as under :

Salary grade Ceiling limit of entitled

built-up in sq.ft.

I 1800
H 1800
G 1800
F 1500
E 1500
D 1000
C 1000
B 750
A 750
7.1.19 Alienation, transfer, letting out, licensing or disposal of the property,
house, tenement or flat by the borrower :

Without in any way affecting the provision of the mortgage /security

documents and the powers and authorities vested in the Corporation
thereunder and the observance of the terms , conditions, and covenants on
behalf of the borrower employee/ members of the society / co-operative
Housing Society, as the case may be , thereunder, the following additional
provisions shall also be applicable in relation to the alienation, transfer,
assignment, letting out, licensing or disposal of the property , house,
tenement or flat :

i. The employee shall be bound to live in the house/ flat tenement

constructed, acquired, purchased or enlarged with the aid of the loan
assistance from the Corporation, himself with his family members
and dependents if he is posted in the same town or area or within
easily accessible reach thereon in any neighboring place unless
exempted by the competent authority as given in clause 7.1.10.

Further, the employee shall be required to occupy the house/flat for

his own residence as expeditiously as possible but not later than 6
months from the date of completion. Failure to do so will result in
non payment of HRA / Housing subsidy by the Corporation. Any
exception to the 6 months time limit prescribed by the Corporation
can be authorized by the Corporation in the interest of the
Corporation or on the merit of any compelling grounds that the
employee may advance.

ii. In the case of transfer of the employee to a place other than the
station at which the house /flat/tenement is situated, or if the housing
loan is granted for acquiring / constructing house/ flat/ tenement at a
place other than the place of posting, the borrower employee shall
offer the same, in the first instance, on rent or licence to the
Corporation and the Corporation will have the right to avail of the
same and /or to nominate any of its employees to use and occupy
the same, at such rent or licence fee and on such terms and
conditions as may be mutually agreed upon between the employee
and the Corporation, provided that the rent / licence payable by the
Corporation, shall be less than the market rent having regard to the
concessional interest at which the loan is granted. In the event of
the Corporation not availing of its option as aforesaid or its refusal
within the a period of two months from the date of the same, being
so made in writing to the Corporation, the employee with the prior
written permission of the Corporation may give the house/ flat /
tenement on rent or leave and licence basis on terms and conditions
not less favourable (to employees) than were offered to the
 Corporation, to any other persons as the Corporation may approve
in writing and all necessary documents will be executed by the
employee and the intended tenant or licensee only with prior
approval of the Corporation, so as to fully preserve and not in any
way prejudice the rights of the Corporation, and the securities given
to the Corporation by the employee.

In either of the above cases, where the Corporation itself avails of

the right to take the premises on rent or licence or the same is allotted
to any other person, 60 % of the Net Rental Income from the rent or
licence fee is calculated in accordance with the formula indicated
below, shall be utilised towards repayment, of the principal amount
of the loan granted and interest thereon in addition to the payment of
the monthly equated instalments as provided in these Rules.

Formula :

a. Rent per month : r____________

b. i. Amount of equated monthly

instalment towards repayment
of loan & interest : r___________

ii. Cost of Insurance : r___________

iii. Amount of municipal taxes : r___________

iv. Cost of repairs & maintenance

(up to a limit of 1/6th of the
rental) : r_____________

v. Any other society charges

in the case of Co-op Soc. : r___________

Total (B) : r__________

Net Rental Income (A)-(B) : r__________

(Information regarding item (ii) to (v) per month has to be given by

the employee based on the annual cost , duly supported by relevant
documents, wherever necessary).

iii. The employee, who has let his house / flat to the Corporation upon
his transfer to another location, will be eligible, at the earliest
convenience of the Corporation, to get back vacant possession of his
house/flat, upon his transfer back to the same location or upon his
 due retirement from the Corporation. In the latter event, vacant
possession of the house/ flat will be given only upon his having fully
repaid the loan, interest etc.

iv. The employee shall in the event of his/her transfer to any other place
of duty, given the Corporation the first offer to sell to the Corporation
the house/flat. If the Corporation does not avail of such offer within
a period of two months from the date on which the same was made,
the employee may with the prior written permission of the
Corporation, sell or otherwise alienate the house/ tenement / flat to
any outside party on not less than the terms and conditions that were
offered to the Corporation and in either of such cases, the balance
of the loan, interest, costs, charges and expenses then outstanding
shall be immediately repaid to the Corporation adjusted or recovered
against the sale proceeds and in the event of any deficit arising
therefrom , such balance shall immediately and forthwith become
repayable to the Corporation. Without affecting the mortgage/
security, the Corporation will have a first charge and lien on the sale
proceeds for the purpose of realizing the outstanding amount and the
rights of such outside party shall be subject to the mortgage/ security
and the first charge of the Corporation. No transfer deed for such
sale shall be executed till such time as the Corporation's dues are
paid in full.

v. The employee shall not, save as expressly provided by the

Corporation in writing, alienate, mortgage, lease, transfer, assign,
licence or otherwise part with the property, house, tenement or flat,
for the time being the subject matter of the security in favour of the
Corporation, in any manner whatsoever and shall not do or omit any
act, deed, matter or thing whereby the security of the Corporation
and the recovery and realisation of the outstanding amount due to
the Corporation is in any manner prejudiced or otherwise affected.

vi. Where the house/flat/tenement is located in the same station of

posting any portion surplus to the employee's requirement may be
permitted to be let out. The surplus portion will be determined in
direct proportion to any additional amount invested by the employee
from his own resources over and above the housing loan
drawn from the Corporation. Before the employee is so permitted to
let out the house/flat or any portion of it, the employee shall make an
offer to the Corporation and the Corporation shall have the first right
and option to take the same on rent or license at market rent as
assessed by it. Appropriate additional housing loan recovery as per
the prescribed formula will be made based on the rental income
 received by the employee for letting out surplus portions mentioned
above.

vii. In exceptional circumstances and in the Corporation's interest the

employee who has purchased/constructed / extended /enlarged/
modified the house/flat with the aid of housing loan from the
Corporation and the house/ flat is located at the same station of
posting may be permitted to let out such house/flat and be permitted
to occupy Corporation's own/ hired accommodation , subject to
specific approval by the Corporation.

viii. No employee to whom housing loan has been advanced shall

mortgage, lease, transfer, assign, license, sell in any other manner
alienate the property during the period housing loan or any part
thereof is outstanding without prior permission in writing from the
Corporation.

7.1.20 General Conditions :

i. The flat / tenement / house / land / property to be purchased /

acquired by the borrower employee should be solely / exclusively
purchased in the name of employee as joint ownership is not
permitted as per housing loan rules.

ii. In all cases where loan is required for construction of

house/flat/tenement or extension/ enlargement, employees shall
furnish approved plans, drawings, estimate by architects, etc. The
construction or extension of the house/tenement or flat shall be
carried out only in accordance with the approved plans,
specifications, statements, and estimates on the basis of which the
amount of the advance was computed and sanctioned and from time
to time certificates and statements from architects etc. will be
furnished by the employee to satisfy the Corporation that the
disbursed loan is actually being used for the specific purpose for
which it was sanctioned.

iii. The purchase of site/ house/ flat or construction of house/flat for

which a loan is granted shall be completed by the employee within
the time prescribed by the Corporation. For this purpose, the
employee shall propose a time schedule at the time of applying for a
loan and the Corporation shall prescribe the time schedule to be
followed, which in case of construction will not exceed 18 months for
the various stages.
 iv. At the time of grant of loan, the Corporation will prescribe the time
schedule for pending securities / insurance documents/ certificates
etc and the employee shall comply with such schedule.

v. The Corporation shall be entitled to arrange to have an on the spot

inspection and verification of the correctness of the certificates and
statements made by the employee and to ascertain that the
construction / acquisition work is being undertaken according to the
time schedule prescribed.

vi. The employee shall take or cause to be taken, effective steps to

maintain the house / flat / tenement in good and habitable condition
and permit the Corporation to take inspection thereof to verify the
state and condition of such house / tenement / flat from time to time.
The employee shall also keep the mortgage/ security free from all
encumbrances, and pay and continue to pay all municipal and other
local rates, cesses and taxes, ground rent, maintenance charges,
society contribution charges, insurance premia and all other
outgoings regularly till any of the Corporation's dues are outstanding
and shall adduce satisfactory proof of having done so and furnish
certificates to this effect periodically and shall exercise due care and
diligence and do all acts necessary so as not to permit any
attachment, lien, process or notice to be issued against or in respect
of the mortgage/ security or allow the Corporation's security or rights
to be jeopardised in any manner.

vii. The Corporation may from time to time, formulate procedures for
declaration, statements and undertakings etc to be furnished for
execution of the mortgage / security documents, re conveyance and
release and for disbursement statements and other related
purposes. The employee shall be bound to adhere to the said
procedures as are applicable, to the extent practicable and any
deviation therefrom will not be permitted in favour of any of the
employees.

viii. In all cases, before the disbursement of the loan, the employee shall
be bound to comply with all legal formalities and to make out an
undisputable and marketable title to the mortgage/ security, free from
all reasonable doubts. If the Corporation or its legal advisors reject
such title, the Corporation shall not be bound to advance or disburse
any loan, even if sanctioned and the Corporation shall not be liable
in any manner for any consequences resulting from non
disbursement of the loan.

ix. In cases where the employee acquires property under this scheme
as a member of a Co-operative Society or a Limited Company set up
 for housing purposes, the employee shall ensure compliance by the
Society/Company of all these Rules and conditions, etc. prescribed
in this regard by the Corporation from time to time.

x. The Corporation reserves the right to withdraw or suspend the

scheme , partially or wholly, without notice, if financial reasons and /
or any other exigency so requires, in its sole discretion and without
prejudice in respect of any loan or instalment thereof that may have
been previously sanctioned and would not be payable as a result of
such a decision.

xi. The Corporation reserves the right to amend or add any rules and /
or procedures framed in this connection from time to time in such a
manner as it may deem fit.

xii. An employee availing himself of loan under this scheme and not
complying with any of these rules or any other condition / term
/promise undertaking given by him or misusing the loan assistance
in any form , will render himself liable to disciplinary action involving
major penalties, and in addition shall be bound to refund the entire
amount of the loan outstanding together with interest on the loan
granted @ penal interest rate from the date of disbursement of loan
less any payment of interest already made.

xiii. The Corporation shall be the sole authority to determine whether or

not there has been a breach of the Rules or any other condition or
term relevant to the grant of the loan, by the employee. The
employee will have no right to contest such determination.

xiv. The employee shall undertake in writing to fully abide by these Rules,
before he is granted a loan and such undertaking shall be binding on
his/her successors / assigns.

xv. In the event of any doubts or disputes with regard to any of the
provisions of the Rules, the interpretation of the Corporation shall be
final and binding.

xvi. Employee will be permitted to avail housing loan from the

Corporation 3 times during the entire service period in any order
subject to the following :-

 The fresh housing loan on completion of 3 years of confirmed

service.
 Transfer of housing loan prior to completion of 5 years.
 Repeat housing loan on completion of 5 years from the date
of sanction of fresh housing loan.