1

Purpose

To meet personal / domestic expenses

2

Facility

Demand Loan

3

Eligibility

Permanent Teachers / Employees of Schools / Colleges / Universities and other Educational and Research Institute and whose salary routed through account maintained with our branch.

The applicant should submit an undertaking from Employer

v  To deduct the monthly installments and remit the same to bank and

v  To recover bank's dues from the terminal benefit of the employee in case of termination of services for any reason including death.

4

Take home pay

Minimum 40% of Gross salary including installment of the proposed loan.

5

Quantum of Loan

Twenty times of gross salary subject to maximum of Rs.500,000/- and minimum net home pay of 40% of gross salary after taking into consideration payment of statutory dues, repayment of various loans including the instalment of proposed loan. 

6

Security

Ø  Salary to be routed through account maintained with our branch.

Ø  The borrower should give an irrevocable undertaking for not transferring salary account to any other Bank during currency of loan. Such undertaking should be got registered with/acknowledged by the employer.

Ø  Authority to be obtained from the borrower to debit the salary account for monthly instalments.

Ø  In case the salary is not routed through our Branch, the following undertaking to be obtained for sanction of loan;

• Irrevocable undertaking from the employer to deduct EMIs from the salary of the borrower employee and pay the same directly to the Bank, till full adjustment of loan amount.

• Undertaking should cover deductions not only from salary but also from bonus / exgratia payment / terminal dues in case of retirement, death, cessation of service for any other reason and any other dues from the employer.

7

Guarantee

Personal Guarantee by co-employee of worth at least equal to loan amount

8

Rate of Interest

Base Rate+2.75%

If liquid security in the form of NSC/KVP/FD etc. is available to cover the loan, Concession of 1% in the ROI may be allowed

9

Repayment

48 Equated Monthly Installments or within the left over period of service whichever is less.

10

Processing Charges

Rs.500/- per proposal.