PERSONAL LOAN

Scheme

To provide consumer credit to individuals having an assured source of regular income  to acquire consumer durables such as  purchase of brand new consumer durables like Refrigerators, TVs, wooden and steel furniture, washing machines, Mixer and grinders, Cooking ranges and other house hold equipment

Eligibility

Salaried persons Pensioners drawing pension in the branch Other persons with minimum annual income of Rs.30,000

Margin amount

25% of the value of article proposed to be purchased

Quantum of Finance

Maximum amount of loan that can be sanctioned : 10 month gross salary in case of salaried class or cost of the article whichever is less.  4 months pension in case of pensioners 40%  of the annual income in case of other persons

 

Repayment

Repayable in monthly installments.  Maximum period not to exceed 60 months

 

Co-obligation

Husband/ father or any third party (with sufficient worth and of regular income) acceptable to the bank. Where the applicant is unwilling or unable to furnish suitable co-obligation, liquid collateral security is insisted upon.

 

Security

Personal security of the borrower and Hypothecation of the article purchased with Bank finance

 

Collateral security

Assignment of Life insurance policy with equivalent surrender value Pledge of shares, NSCs, Units etc. of adequate value

 

Documents

Proof of Income – Salary Slip/ IT Returns/ Assessment Order, Property Statement For Non salaried person – Latest Income Tax Assessment Order, Property statement Any other Valid document Latest original quotation for article proposed to be purchased.

 

Prepayment  Charges

2% on the amount prepaid

 

Other Points

Insurance of hypothecated assets is waived in respect of loans with limits not exceeding Rs.10,000/- , In other case the hypothecated asset should be insured for its full value immediately after disbursement of the loan and also renewed annually till the loan is repaid in full.