CAR LOAN
1.PURPOSE
A loan under the scheme shall be granted for purchase of a Car. [New/Second hand].
2.ELIGIBILITY
All permanent clerical staff who have completed 2 years of confirmed service in clerical cadre. To avail car loan the concerned employee must have 30% take home pay after all deductions including deduct ion of car loan instalment through out pendency of the loan. The clerical staff who have availed overdraft facility from the bank is also eligible to avail the loan.
Gross emolument will be considered as under :
i. Gross Salary as per latest Salary Slip (excluding lump sum arrear or recovery
made for past period).
ii. Notional House Rent allowance on rent basis i.e 150 % of normal HRA to be added for the employees availing Bank’s own/leased accommodations – This is required for giving same treatment to the employees availing Bank’s quarter/ leased accommodation and the employees availing HRA.
b. The total deductions from the employee’s salary, inclusive of interest on clean OD & installments of proposed loan under this scheme, should not exceed 70% of his/her gross salary, for working out the maximum loan amount applicable under the scheme.
c. For calculation of 70% of gross emoluments after deductions of various loan liabilities/statuary dues etc. will be calculated as under:
All types of deduction like various loan installments (other than the short term loan scheme with loan repayment period of less than three years like Festival Advance/ COVID Loan/ Flood Loan, Cyclone Loan/ any other
distress loan etc.) Provident Fund, Income Tax, Insurance premium, other regular monthly recoveries, Credit Society Loan, notional monthly interest on Overdraft sanctioned etc., including installment of proposed loan(s) to
be deducted from the gross emoluments calculated as above –
d. Average monthly TDS deducted on account of salary in last financial year is to be considered as statutory deduction from monthly salary.
3.QUANTUM
90% of the cost of the motor car or Rs.8 lacs. Whichever is lower.
4.RATE OF INTEREST
On Loan amount @ 6% simple.
5.REPAYMENT
The loan together with interest shall be repayable in not more than 120 monthly instalments (principal in 90 months and interest in 30 months) or by the date of retirement of the employee or on selling the car whichever is earlier.
Revised Loan scheme to be effective from 06/09/2021
For Second hand motor car :
Where the clerical staff would like to buy a second hand motor car, the employee has to comply with the following.
I]Second hand motor car should not be more than three years old.
II]A fitness certificate issued by a qualified Automobile Engineer.
III]A valuation Certificate from an approved valuer for the proposed second hand motor car.
TERMS CONDITIONS
Security :
I]Hypothecation of the vehicle to be purchased.
II]Bank’s charge is to be registered with respective Regional Transport Authority.
III]Comprehensive insurance with Bank Clause.
IV] Suitable letter from the employee earmarking all his terminal benefits, namely PF,Gratuity and Leave Encashment as a security for the aforesaid loan.
SANCTIONING AUTHORITY
For clerical staff working in branches/offices under the jurisdiction of any Zonal Office, the respective Zonal Head would be the sanctioning authority. However in case of EL/VL branches, the Head of the branch in SMGS-IV or SMGS-V would be the sanctioning authority and he shall intimate his Zonal head of such sanctions. For clerical staff in Head Office sanctioning authority would be AGM / Dy. General Manager, Personnel.
Ref .CHO_PMG_42_2019-20 dt 13.02.2020.
Ref:
H.O Cir No. CHO/PAS/06/2003 dated 05.09.2003
H.O Cir No. CHO/PAS/01/2004 dated 08.01.2004
H.O Cir No. CHO/PMG/35/2009-10 DT 03.02.2010
H.O Cir No. CHO/Retail Banking / 02/2009-10 dt 7.4.2009
H.O Cir No. CHO/PMG/35/2009-10 DT 03.02.2010
H.O Cir No. CHO/PAS/6/2012-13 DT 01.12.2012
H.O Cir No. CHO/PAS/08/2013-14 DT 28/12/2013.