| Purpose | The loan could be considered to meet genuine credit requirements of the borrower for personal purposes and purpose of the loan has to be ascertained and recorded by the Branch Manager. | ||||||
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| Eligible Persons | Personal loans may be sanctioned to only individuals who are permanent /regular employees of Govt. of Telangana, Central Govt., Public Sector Undertakings, and other salaried personswith minimum three years of service(Including previous employment / experience and confirmed in the present employment) and balance of service of more than the tenure of loan repayment period. | ||||||
| Age Limit | Minimum and Maximum entry age for availing loan shall be 21 years and 60 years respectively. | ||||||
| KYC | The borrower must comply with KYC norms. | ||||||
| Application | All the Personal loans are to be sanctioned in the name of the Borrower. The spouse of the applicant who is salaried and working even in a private organisation may also be joined as co-applicant to arrive at the loan eligibility on the request of the borrower. Where co-applicant is considered, he/she should also comply with all the parameters set for the applicant in this policy except that of EMPLOYER. | ||||||
| Eligibility for Employees | The maximum loan eligibility is fixed at 25 times of the average of last three net salaries. While calculating the eligibility, the principle of ‘one-third take-home salary’ should be applied. The take-home salary should be one-third of the gross salary after deduction of the proposed loan instalment. The maximum loan amount that can be sanctioned is Rs.10 lakhs or 25 times of the net salary, whichever is less. The minimum service of the employee should be 5 years. For arriving at the eligibility of the loan amount, Voluntary PF shall also to be taken into account. However, the take-home salary should be 1/3rd of the gross income after deducting the instalments of the proposed personal loan. | ||||||
| CIBIL Report | CIBIL score of the prospective borrower should be recorded and minimum score should be 650 without any delinquencies* in the preceding one year and 700 without any delinquencies* in the preceding 6 months as per the CIBIL record. CIBIL Report should be obtained from the department of Loans & Advances, Head Office only. CIBIL Reports furnished by the Borrower should not be accepted. | ||||||
| Rate of Interest | If CIBIL score is more than 1)750 and without any delinquencies observed in the preceding 15 months, ROI- 10.95% p.a 2)700 and without any delinquencies observed in the preceding one year, ROI – 11.55% All other cases ROI-11.95% with monthly rests and shall be as decided by the Bank from time to time. Concessional Rate of Interest at 0.50%for the employees whose salary accounts are maintained with our Bank Branches or providing Employer Undertaking from their Drawing and Disbursing officer (DDO). | ||||||
| Penal Interest | Penal interest @ 2% p.a. over and above the normal rate will be levied on the defaulted instalments.Over and above this, on every non-receipt of EMI before due date an amount of Rs. 300 should be charged from the customer. | ||||||
| Pre- Closure charges | Pre- closure charges will not be applicable to the existing borrowers who want to avail new loan immediately after closing the current loan under the same product. (i) 4% on Total outstanding amount for loans closed between 1-24 months. (ii) 3% on Total outstanding amount for loans closed between 25-36 months. (iii) 2% on Total outstanding amount for loans closed between 37-48 months. | ||||||
| Documents to be obtained | Valid documents of KYC of Applicant& Co-applicant. Complete Application Form withlatest Passport size photographs of Applicant& Co-applicant. Three latest monthly salary slips for employees and proof of Employment that which has Joining date. Bank statement of the Applicant for six months. Form 16 / Income Tax Returns for the past 2 years. | ||||||
| Repayment period | Repayment period may be fixed depending upon the repayment capacity of the borrower; however, not exceeding 60 months with ‘Equated Monthly Instalments (EMI)’. | ||||||
| Processing fee | Processing fee is to be collected @ 0.75% of the loan amount and maximum uptoRs. 7000/-plus applicable taxes thereon. | ||||||
| Sanctioning Authority |
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| Nominal Membership | Nominal share capital of Rs.100/- and an admission fee of Rs.10/- each is to be collected from the Applicant and Co-applicants/Sureties. | ||||||
| Life Insurance | Life Insurance of the applicant/ Co-applicant for an amount equivalent to the loan amount for the entire period of loan shall be insured with Life Insurance Company approved by the Bank.However, the borrower shall be given an option either to pay the premium in lumpsum (or) load the premium amount in the loan amount if the borrower is unable to pay the lump-sum amount upfront. | ||||||
| Disbursement | Prospective borrower need not be an account holder but on sanctioning the loan, he/she should open an S.B. account and the loan is to be disbursed through that account. | ||||||
| Right to call back the loan amount | The Bank reserves the right to call back the total loan amount with interest, penal interest, and other charges if any without assigning any reason therefor. | ||||||
| Post-dated Cheques | Required number of Post-dated cheques(equal to number of EMIs) of their salary account towards instalments shall be obtained in the prescribed format with an undertaking to honour the cheques on presentationand 2 Post-dated cheques from Co-Applicant wherever required. |