Sr No

Particular

Details

1.

Eligibility

Ø  Pensioners / Family Pensioners drawing pension through our Bank's branches.

Ø  The Pensioners who are getting their pension disbursed through Treasury/DPDO (Defence Pension Disbursing Office) directly to the credit of their saving accounts with our branches are also eligible.

Ø  Pensioners/Family Pensioners of our Bank.

2.

Purpose

Ø  Any genuine personal credit requirement.

3.

Quantum of loan.

Pensioner aged up to 75 years

18 months pension,  maximum Rs.500,000/- subject to EMI not exceeding 50 % monthly pension

Pensioners aged above 75 years

12 months pension,  maximum Rs.2,00,000/- subject to EMI not exceeding 50 % monthly pension

In case of OD facility notional EMI should not exceed 50% of monthly pension

4.

Rate of interest

Ø  Base Rate +2.00 %. Concession of 50 basis points in rate of interest may be given on loan to spouse of pensioners drawing family pension.

5.

Repayment

Ø  Demand Loan:

Pensioner Aged upto 65 years - Max 48 EMIs

Pensioner Aged above 65 years & upto 70 years - Max 36 EMIs

Pensioner Aged above 70 years - Max 24 EMIs

The EMI should not exceed 50 % monthly pension

Ø  Overdraft (Diminishing)

Pensioner Aged upto 65 years - OD limit for 4 years.

Pensioner Aged above 65 years & upto 70 years - OD limit for 3 years.

Pensioner Aged above 70 years - OD limit for 2 years.

Drawing Power in OD will be reduced on monthly basis to the extent of notional EMI amount.

Notional EMI should not exceed 50% monthly pension.

6.

Guarantee

Ø  The loan should be guaranteed by a good third party who has sufficient worth. The Guarantor may be the nominee for pensioner's estate or the legal heir for family pension.

Ø  If the pensioner or any of his/her family members has got life Insurance Policy, the same may be accepted as security in lieu of guarantee and be duly assigned in Bank's favour. This policy should have regular premium payment and have surrender value equal to or more than 50% of the loan amount.

7.

Other terms & conditions

Ø  A Letter of Authority to be obtained from the pensioner (standing instructions) for debiting the EMI to his/her Saving Account and crediting the same to the loan account till it is closed in case of Demand Loan. In case of Overdraft facility the monthly pension should be credited to Overdraft account only.

Ø  The pensioners whose pension is disbursed through Treasury/DPDO directly should submit an undertaking that they will not approach Treasury/DPDO for change of the beneficiary account Branch and Bank during the currency of the loan. Pensioner's copy of Original PPO should be lodged with the Branch.

Ø  While extending the DL/OD facility to the pensioners whose pension is disbursed through Treasury/DPDO (Defence Pension Disbursing Office) directly to the credit of their saving accounts with our branches, the Pension Disbursing Authority should be suitably informed about the loan availed by the pensioner.

Ø  In case of family pensioners the loan tenure should not exceed the point of ceasing/stoppage of family pension as per Pension Payment Order.(PPO)