Surety Loan :
Our Bank offers a surety loan, which can be used for various purposes such as buying household appliances, covering wedding expenses, or dealing with family emergencies. It's designed with the everyday person in mind, with minimal eligibility requirements. The documentation process is simple, and the loan is processed quickly.
Purpose :
This can be used for buying consumer durables or household articles, covering marriage expenses, meeting other family expenses and more.
Membership :
- 5% of the loan amount as a regular shareholder.
Eligibility :
- Employees who are permanently employed and under the age of 60, and have been confirmed in the service of government departments, reputable corporations / businesses, recognized educational institutions, etc,.
Repayment Period :
- When determining the maximum loan amount for 36 EMI, we take into consideration the employee's take home salary, repayment plan and remaining period of service. This is to ensure that the loan amount is recovered within the applicant's service period.
Rate of Interest : 18%
Penal Charges :
- Any irregularity or default in repayment will attract penal charges of 3.00% p.a. over and above the above rate of interest on the balance outstanding.
Processing Fees :
Loan Quantum :
- When the employer deducts and remits the installment amount every month or the installment is deducted from the salary account maintained by the Branch, it should be 6 times the gross salary as per the latest salary bill, with a maximum limit of Rs.5,00,000.
Interest Calculation Method :
Basis of Advance :
- The maximum loan amount for salaried individuals is 60 times the average net take home salary.
- The maximum loan amount a businessman can avail is either 5 times the average net cash earned.
Security :
- Lien over Salary, Bonus, and other emoluments.
- Primary: Hypothecation of assets created out of the loan proceeds in case the loan is sanctioned for purchasing Consumer Durables / Household articles. A suitable third-party guarantee is to be obtained, if necessary.
- Collateral: Obtention of collateral security need not be a prerequisite.
- Co-obligant: If the employer does not agree to deduct and remit the installment, or if the installment is not deducted from the salary account maintained by the branch, it is necessary to obtain a suitable co-obligant from two reputable individuals.
Documentation :
- Simple documents as per our Bank Norms.
