1.PURPOSE
To meet the expenses for children’s higher education abroad or in professional colleges in India and their marriages;
To meet shortfall in the cost of house/flat to be purchased, expenditure on major repairs / renovation of the house / flat;
To meet expenses in connection with treatment for serious illness of self / dependants / close relatives;
To finance partly / fully for purchase of four / two wheeler vehicles and also for major repairs thereto;
Purchase of consumer durables such as audio / video / home appliances / personal computers etc :
Travelling expenses of self / dependants to visit a place outside India.
To repay the loans availed from other institutions for the aforesaid purposes.
2.ELIGIBILITY :
5 years of completed service in the bank. Take home pay should be 40%.
3.QUANTUM OF LOAN:
One month’s pay for every completed year of service, maximum 10 months ‘pay’. Subject to the following ceilings :
Officers Rs.90,000/- [maximum]
Clerical staff Rs.60,000/- [maximum ]
Subordinate staff Rs.30,000/- [maximum ]
Pay – for this purpose includes Basic Pay, stagnation increments, Officiating allowance, PQA and increment component of FPA, special allowances etc, which are qualifying for Provident Fund.
4.RATE OF INTEREST :
0.5% above PLR + interest tax to be compounded quarterly.
5.REPAYMENT :
The period of recovery should be so fixed that the entire loan is recovered within the period of service of the employee or 84 monthly equated installments whichever is less.[installment will be fixed taking into account the interest element.
SANCTIONING AUTHORITY :
Regional managers – for all staff members working in the region CM/ A G M of EL/VL branches – for the staff members working in their branches. AGM Personnel – for staff members working at Head Office including inspecting officers :
In case where disciplinary action is pending/initiated/contemplated the loan will be considered by the respective Zonal Managers/ Dy General Manager, personnel at Head Office.
Request for loan on subsequent occasions will be considered after a lapse of one year from the date of closure of the previous loan.
The eligibility for quantum of advance for the officers/employees who have already availed consumer loan shall stand reduced to the extent of balance outstanding in these accounts.
FOR PART TIME EMPLOYEES :
One month’s pay for every completed year of service, maximum 10 month’s pay subject to the following ceiling;
Permanent Part-time employees working on 1/3 scale wages : Rs.10000/-
Permanent Part-time employees working on ½ scale wages : Rs.15000/Permanent Part-time employees working on ¾ scale wages : Rs.22500/-
Ref No.: CHO/PMG/13/98 DATED 20.7.98 CHO/PAS/8/98 DATED 18.11.98.