Mortgage loans

SMIB Mortgage loans Products

Purposes for the loan granted

        To Construct or Purchase a house
  To purchase a block of land to build a house
  To add a new part to a house /extensions
  To complete a partly built house / To construct a section of house
  To Repay a loan obtained from a recognized financial institution for housing purpose (Redemption)
  To Purchase of machinery, equipment / To construct a factory building
  To purchase  agriculture machinery/equipments
  To Purchase agriculture vehicle or properties

 For the financial requirements of the small & medium Enterprises.

  To purchase a vehicle for transportation & tourism Industry
  To Finance for tourism, agricultural & fishing Industry.


Who can obtain the loan

       Salaried employees
  Business/self Employed
  An income-tax payer
  Employed abroad
  Income earners from Agriculture (small & medium enterprises)
  Rental Income earners
  Others who can provide details of a steady  income from authorized personnel.
  You can apply for the loan either individually or jointly (with your spouse, with parents or with your children)
  Migrant Employees registered with Sri Lanka Bureau of Foreign Employment(SLBFE)


The Loan amount you can obtain
        From Rs. 100,000/- upwards (Maximum  according to the credit policy))
  Purchase of house: 65% - 75% of the forced sale value  **
  Construction loans: 65 % - 75%  of the on completion Value  **

Purchase of Building Blocks 65%  - 75% of the forced sale Value **

** Vary according to the location of the property


What is the Security
     The land on which the loan is invested or another   Security to be mortgaged.


What will be your Loan Installment


           If you are a salaried employee: 60% of the salary will be your maximum loan installment depending on your loan amount. This may vary according to your other loan commitments.
  Others : Subject to evaluation of disposable income that can be proved.


 Insurance cover
     Loan Protection Insurance cover (preferred)
    Only a single premium is payable on this insurance. The main benefit of this insurance is in the event of death of the borrower, the dependents will not be burdened with the repayment of the loan. This insurance is not compulsory, but recommended.


In the event of a defect in the title, a title insurance is mandatory

Fire Insurance is mandatory and should be renewed annually. (For purchase of house, Construction, Redemption of loan (if there is a house)

Documents to be attached to the loan application
       Photo copies National Identity Card (Original and photo copy) / valid Passport (period not expired) Marriage certificate (Original and 1 photo copy). (Applicable only to joint applicants)


 Proof of Income



If you are a salaried employee, a statement of salary particulars and confirmation of employment from your employer with full details of deductions, 06 pay sheets and bank statement for last 06 months

  If you are an income tax paying business person, Income Tax Reports and Audited financial statements for 03 years together with Bank statements for the last 6 months
  Self  employment-financial statement with income proven documents.
Securities -  Documents

Original deed and 2 photo copies  and approved survey plan (should not be older than 20 years).

Extracts of encomberances of the Registers maintained at the Land Registries to cover title up to 20 years.

Copies of previous deeds and survey plans if available.

Original approved survey plan drawn within 20 years.

Documents to be obtained from Local Government Authorities:

       Certificate of ownership
  Certificate of non vesting
  Street line Certificates (only if applicable)
  Building line Certificate
  Notice of Rates Assessment (current year)
  Receipt for payment of Assessment Rates for the last quarter of current year.


If any Pradeshiya Sabha does not issue the above certificates please obtain a certificate stating that the above are not applicable. This certificate should not be older than 6 months. If sub-division approval is not required a letter to this effect should be obtained by the local authority.

Grama Niladhari letter mentioning the Grama Niladhari division and Divisional secretariat division where the land stated.

Access to the property


         A rough sketch showing access to the property from the nearest town. If the access road is not a public or common road , the access way should be conveyed by a deed. Access should be depicted in the survey plan. The availability of an access road with a minimum width of 10 feet is necessary.


If the applicant is a Tamil or Muslim or married under Kandyan Law an affidavit should be submitted whether they are affected by General law or any Personal law is necessary.

Valuation Reports

This should be obtained for main house valuation officer or from valuation  officer in the Bank’s Panel. Fee payable

Amount of loan (Rs.)


Up to 500,000/-


500,001/- to 1 Million


1,000,001 -2.5 Million


2,500,001 -5 Million

 Over 5 Million



Panel Valuations  fee.

Amount of loan (Rs.)


500,001/- to 10 Million


10,000,001  to 20 Million


Above 20 Million



The following documents are also necessary in addition to those indicated above


      A copy of the approved building plan (if approval is not required a letter to that effect from Local Authority)
  Two copies of the Statement of Estimated expenditure (This should be prepared by a Technical Officer)
  Model building plans and all technical instructions are available free from our Valuation Division. Building plans and building estimates can be obtained from our Technical Services Division for a fee
  In case of purchase of property a letter of undertaking issued by the Vendor
Release of loan


Purchasing - Registered Mortgage Bond, Deed of Transfer, Extracts along with the documents received from panel lawyer. (Except priority Loans)

Construction - After executing the mortgage bond

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    Colombo 03, Sri Lanka
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