1.

Target Customers
(Eligibility)

-- Regular pensioners or family pensioners
drawing regular monthly pension
through the branch.
-- Retired employees (other than dismissed/compulsorily retired)

2.

Type of Advance

Demand Loan/Term Loan/Overdraft
(reducible as per repaymentschedule)/
Overdraft (3 months Pension Max. Rs.15000/-)

3.

Quantumof Advance
DL/TL/OD (reducible as per repayment schedule)

Overdraft [Pensioner' Credit Card holder not eligible]

Regular Pensioner

Family Pensioner

a.Unsecured/Clean:-
10 times of monthly pension (maximum loan amount Rs.1 LAC)

10 times of monthly Pension(Max. loan amount
Rs.50000/-)

b.Secured :-
a) 20 times of monthlypension (maximum loan amount Rs.1 lac)
b) For pensioners over 65 years – maximum loan amount Rs.50000/-

20 times of monthly pension (Max. loan amount
Rs.50000/-)

[Proponent/borrower may be sanctioned
more than one loan (i.e. two accounts –
one for secured and other for
unsecured/clean loan) under
the scheme, depending upon eligibility].

3 times of net
pension (amount
credited to SB A/c.
less EMI for Loans
if any,
Max. Rs.15000/-)

3 times of
net pension
(amount credited
to SB A/c. less
EMI for Loans
if any,
Max. Rs.15000/-)

4.

Net take home Pension

The net take home pension after deduction of loan installment   should be at least 40% of the pension amount.

5.

Purpose

Unsecured / Clean
a.To meet marriage expenses /Medical expenses /Education of self/spouse/children/near relatives.
b.Repairs/renovation/extension of existing house/flat (where Equitable Mortgage charge over the property cannot be created in favor of the Bank and the proponent has not raised loan against such property from any Bank/FI/NBFC, etc).
c. Any other Personal Expenses of bonafidenature .
Secured Advances
a.Repayment of existing Housing Loan from other Banks/FIs.etc.
b.Purchase of Consumer Durables/Computers/Professional
Equipments, etc.
[In case of clean/unsecured loan, an undertaking to be obtained from the borrower stating that the loan has been utilized for the purpose declared. In case of secured advances, appropriate proof/bills/receipts for expenses incurred to be obtained.]

6.

Repayment

For Clean/unsecured advance

Secured Advance

Max.36 EMIs w.e.f. one month after first disbursement..
60 EMIs in exceptional cases.

Max. 60 EMIs w.e.f. one month after 1st disbursement.

7.

Rate of Interest w.e.f.28.07.11
(at monthly rests)

Fully Secured Advances: @ 3.75% above Base Rate, 14.50% p.a.

Clean/Unsecured Advances:@4.25% above Base Rate,  15.00% p.a.

For Senior Citizens (for loans upto Rs.50000/-) at 3.00%above Base Rate, presently 13.75 % p.a.

(Aged 60 years and above)

8.

Processing/
Handling Charges

a. No processing charge for Senior Citizens (60 years & above)

b. For others [after 01.01.2008] one time @ 1.10% of loan amount, Min. Rs.500/- and Max.Rs.1100/-.

c. Stamp Paper charges: At actuals. Loan Agreement Copy charges .- As Applicable