1. Gold (Term) Loan
| Name of the Scheme | Gold (Term) Loan |
| Eligibilble | Individuals or firms who can offer Gold Ornaments for availing loans |
| Purpose | Business purpose or personal needs or any other genuine purpose |
| KYC | Normal KYC guidelines and insist on SB/CD account for the Customers, |
| Quantum of the loan | As per the scale of finance of per gram rate advised by central office or the amount requested by the borrower ,subject to Repayment Capacity of the borrower, which ever is less Maximum Loan limit Rs.50,00,000 |
| Repayment | 1.Maximum 60 months in monthly installments. Lesser repayment shedule may also be considered by the sanctioning authority as per the customer's request 2.Installment will be Rs.2052/---(@8.50) for 60 months per Rs.1,00,000 loan 3.Rs.2028/-(@8.00%-) per month per for 60 months Rs,1,00,000 loan |
| Interest Rate | 8.50% for personal expenses 8.00% for business purpose |
| Repayment Capacity | Branches have to access the repayment capacity of the borrower on the same lines of mortgage loans Necessary columns incorporated in the application form |
| Papers to be obtaines | 1) Application form specially designed for Gold (Term) Loan 2)Income proof 3)Purpose proof or declaration 4)Declaration from the borrower agreeing to pay EMIs and also agreeing for banks right to auction the ornaments if 3 EMIs fall in to arrears and also to bring in the margin, if the value of Gold comes down. 5.If loan is for business purpose, photo of the unit and the documentary proof of business. |
| Doumentation | Application cum appraisal report Demand promissory Note Repayment Agreement Declaration |
| Stamp Duty | Rs.1/- for pronote Rs.100 for Agreement |
| Appraisal of ornaments | Up to Rs.20.00 lakhs-Branch Appraiser should appraise For Loans Above Rs.20.00 lakhs-Two appraisers should appraise the ornaments |
| Sanctioning Authority | Up to and Incusive of Rs.10.00 lakhs (Stand alone or Aggregate) : Branch Manager Above 1.00 lakhs up to Rs.20.00 lakhs: Branch Manager and Zone Manager jointly.. Incase of absence of ZM, matter to be referred to HO for signature of an officer in HO. Loans exceeding Rs 20.00 lakhs (Stand along aggregate) : Board |
| Credit Monitoring | Branches have to monitor the loans for promt recovery of installments every month |
| IRAC Norms | Account will slip to NPA if installments fall into arrears for more than 90 days |
2. Educational loan
Educational Loans:-
Eligibility Criterion:
- Any student who is a major representing himself or a minor student represented by parent or guardian of Indian Nationality and either he / she should be a member or his / her parent is having at least 2 years history in membership of the Bank.
- Must have secured admission on the basis of merit to professional / technical / other courses through entrance test / selection process. Deviation / relaxation is also permitted under special circumstances.
- Must have secured admission to Foreign universities / Institution (for studies abroad)
Courses:-
- School education upto +2 (Intermediate)
- Graduation
- Post Graduation
- Professional Courses
- Courses like ICWA, CFA,CA etc.,
- Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.,
- Courses offered in India by reputed foreign universities
- Evening courses of approved institutes
- And such other courses approved and conducted by UGC / Govt AICTE / AIBMS / ICMR etc., National Institutes and other reputed private institutions acceptable to the Bank.
Quantum of Loan:-
Need based finance subject to repaying capacity of parents / students with following expenses.
- Fees payable to School / College / Hostel
- Examination / Library / Laboratory Fees
- Purchase of Books / Equipment / Instruments / Uniforms
- Caution Deposit / Building Fund / Refundable Deposit
- Travel Expenses Passage Money for studies abroad
- Purchase of Computers considered necessary for completion of the course
- Any other expenses required to complete the course like study tours, project works etc.,
Share Linking:-
- Maximum 5% of the loan amount shall be contributed towards Share Capital (in a phased manner correlating to disbursement of loan)
- 2% on Share Capital shall be paid towards Members Welfare Fund and a one time payment of Rs.25/- towards admission Fees.
Security:-
- No tangible security up to Rs.1.00 Lakhs
- Tangible collateral security (immovable property) either of student’s parents or third party and with further income assignment for payment of installments by the student for loans above Rs.1.00 lakhs
- All loans should be secured by parent(s) / Guardian(s) of the student borrower. In the case of married person, co-obligator shall be the spouse or parent(s) / parents-in-laws
Repayment Schedule:-
- Maximum period for repayment of the loan is 7 years
Features:-
- There is a special discount in interest rates for students who were awarded merit awards (Welfare Schemes Link) by the Bank.