Public Personal Loan (non Check-off)

Purpose: General purpose for purchase of consumer durables, marriage, family function, medical, travel expenses etc except for speculative activities.

Eligibility: Permanent Employee of the State/Central Government and PSUs, Corporations, Private Sector Companies, Reputed Establishments, Professional and Self Employed and other persons engaged in business/agriculture or allied activities having regular sources of income from verifiable sources with a minimum Net Monthly Income of Rs. 5,000 and above.

Minimum Service/Employment Period: 2 years

Loan Amount

  • Minimum: Rs 10,000.
  • Maximum: 18 times of Net Monthly Income without any upper limit for salaries person and with a maximum amount of Rs. 150,000/- for others subject to the conditions that Equated Monthly Installment (EMI) of the loan should be below 50% of Net Monthly Income (NMI).

Credit Scoring: Minimum 60%.

Margin: No margin

Maximum Repayment Period: 60 months

Repayment Schedule: The loan is to be repaid in EMIs over the tenure of the loan and there will be no gestation period.

Security: Postdated cheque and third party guarantee of equal means. Postdated cheques towards monthly installments should be obtained from the borrower under the cover of a Letter of Deposit (Mandate of the borrower conveying deposit of Postdated cheques for appropriation in the loan account). In addition to that LIC policies, FRDs, NSCs, KVPs etc may be obtained depending on the amount of loan.

Rate of Interest: Interest will be applied at the prevailing rate per annum on daily reducing balance with monthly rests.

Mode of Payment: Post Dated Cheques for the Repayment period given or Standing instruction (S.I.) from the borrower’s account with the Bank(s).

Bounced Cheque/ECS or SI dishonours: For every bounced cheque/ECS or SI dishonor, a penalty will be levied at the prevailing rate. The rate may vary from time to time.

Insurance: Borrowers should be insisted to availed term loan insurance covering the loan amount and the tenure of the loan.