Personal loan policy | TSCAB
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Loans, Savings

Personal loan policy

1

Personal loans may be sanctioned to only individuals who are permanent/regular employees of Govt. of Telangana, Public Sector Undertakings and other salaried persons of reputed private companies (as per list approved from time to time) with minimum 3 years’ service, and balance of service more than the repayment period.

2

Professionals like Doctors/ Chartered Accountants/Architects/ Engineers/ Self-employed etc., are also eligible for availing personal loans, provided they furnish satisfactory/ supporting documents i.e., I.T. returns for last 3 years, latest 6 months bank account statement etc., to assess their income and repaying capacity.

3

The loan could be considered to meet genuine credit requirement of the borrower for personal purpose and preferably for the purchase of an asset.

4

The borrower and the sureties must comply with KYC Norms for availment of personal loan. They should be enrolled as nominal members of the Bank by paying required amount of Nominal Share Capital and admission fee.

5

The maximum loan eligibility is fixed at 15 times of the average of last 3 net salaries. While calculating the eligibility, the principle of 1/3rd take home salary should be taken into account. The take home salary should be 1/3rd of the gross salary after deduction of the proposed loan instalment. The maximum loan is Rs.5.00 lakhs or 15 times of Net salary, whichever is less. In case of IT assessees (self-employed) 50% of their total income or Rs.5.00 lakhs whichever is less will be considered as eligibility for sanction of personal loan.

6

The repayment period may be fixed depending on the repayment capacity of the borrower not exceeding 48 months – (EMI). However, the Bank reserves the right to call back the total loan with interest, penal interest etc., without assigning any reason or if the repayments are not regular.

7

The Rate of Interest is presently at 14.00% with monthly rests and shall be as decided by the Bank from time to time.

8

Penal interest of 2% p.a. over and above the normal rate will be levied on the defaulted installments.

9

Salaried persons will have to obtain irrevocable letter of undertaking from their employer, agreeing to remit loan installments to the Bank directly till the closure of loan wherever possible/ ECS debit mandate of their salary a/c. (or) Required no. of Post-dated cheques of their salary account towards installments shall be taken from the borrower in the prescribed format with an undertaking to honour the cheques on presentation. Besides the above, one undated cheque for the total loan amount and another undated cheque for 3 installments may also be taken from the borrower as a precaution. (In case depositing of cheques for total EMIs is not possible six cheques at periodical intervals may be collected).

10

Upto Rs.3.00 lakhs 1 surety

Above Rs.3.00 lakhs 2 sureties

Surety must be a Government Employee with minimum left over service equal to tenure of the loan.

11

Processing fee is to be collected at 1% of the loan amount (+) Service tax as applicable.

*Staff will be given 50% of concession in Processing fee.

12

The applicants if employed shall be from the list of approved Institutions enclosed. The additions/deletions to the approved list shall be approved by Retail Loan Policy Committee from time to time.

13

Borrower’s other credit particulars are to be verified with CIBIL for assessing the credit worthiness/eligibility. CIBIL score of the Borrower should be recorded and minimum score should be 700. The Managing Director may relax CIBIL score on case to case basis depending upon merits of the case. For first time loan takers CIBIL score is not considered.

14

Prospective borrower need not be an A/c. holder but on sanctioning of loan he has to open the S.B.A/c. and the loan is to be disbursed through A/c.

15

Sanctioning Authority:

Upto Rs.3.00 lakhs BM can process the loan application and disburse the loan as per the laid down policy.

Requests for loan amount beyond the sanctioning authority of the BM should be directed to DGM(CLPC).