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You are here: Home > Products & Services > Loans > BGVB Personal Loan

BGVB Personal Loan

Purpose:

Providing loans to the salaried and professional and self-employed persons to meet their personal expenses which are temporary in nature arising out of domestic and social requirements like marriage, social ceremonies, tour, medical treatment or any other purpose except hoarding and speculative activities.

Eligibility: (In case of salaried persons)

  1. The applicant shall be in regular service for at least 2 years and the salary of the applicant is either disbursed through the branch where the applicant has applied for the loan or the employer of the applicant has ensured the repayment of instalments by way of monthly deduction from the applicant's salary.
  2. If the wife is co-borrower and a working lady or a professional, the annual income of the wife shall be added to the income of the husband for the purpose of ascertaining the eligibility and calculating the permissible amount of loan.

Eligibility: (In case of Professional & Self employed)

  1. The applicant shall be in the profession or business for at least 2 years and should be an existing account holder of the branch where the applicant has applied for the loan and the minimum gross amount of annual income shall not be less than Rs.2,00,000/-.
  2. If the wife is co-borrower, the minimum gross amount of annual income may be relaxed upto Rs.1,50,000/- and if the wife is a working lady or a professional, the annual income of the wife shall be added to the income of the husband for the purpose of ascertaining the eligibility and calculating the permissible amount of loan.

Quantum of Loan: (In case of salaried persons)

  1. Where applicant's salary is disbursed through the branch of BGVB or the employer (Govt establishments, PSUs, Other Reputed concerns acceptable to the Bank) of the applicant ensures repayment the maximum limit of Loan will be as follows.
  2. For applicants whose salaries are disbursed through the branch of BGVB the maximum amount of loan shall be Rs.300000- provided it does not exceed 12 months' gross salary.
  3. For applicants whose salaries are not disbursed through the branch of BGVB but where employer will ensure deduction of monthly instalment towards recovery of the loan and send directly to the Bank and also ensure that in case of discontinuation of service of the applicant loanee employee, the loan dues would be recovered from the terminal benefits, the maximum amount of loan shall be Rs.150000- provided it does not exceed 12 months' gross salary.
  4. For newly recruited teachers drawing salary from our branches, the maximum loan amount would be restricted to Rs 200000.00.
  5. For SSKs, MSKs & Para Teachers drawing pay from our Branches the maximum limit of Loan will be restricted to Rs 100000.00.
  6. For Accredited Social Health Activists the maximum limit of Loan will be restricted to Rs 20000.00.
  7. Where applicant's salary is not disbursed through the branch nor has the employer of the applicant ensured monthly payment of loan instalment the maximum limit of Loan will be as follows.
  8. For salaried person where employer does not ensure payment of monthly instalment nor does it ensure recovering of loan dues from the applicant loanee employee's terminal benefits, the maximum amount of loan shall be Rs.30, 000/- provided it does not exceed 3 months' gross salary.
  9. If the wife is co-borrower, the maximum amount of loan may be raised upto Rs.50, 000/- provided it does not exceed 3 months' gross income of the applicant.
  10. If the wife is co-borrower and a working lady or professional, the maximum amount of loan may be raised upto Rs.60, 000/- provided it does not exceed 6 months gross income of the couple.
  11. If the employer of either of the spouse ensures payment of EMI and recovery of loan dues from the terminal benefit, the rules applicable under Para (a.) of this section above shall apply.

Quantum of Loan: (In case of Professional & Self Employed Persons)

  1. The maximum amount of loan shall be Rs. 2.00 lac or 50% of gross annual income of the applicant whichever is lower subject to the condition that the loan amount shall be secured by surrender value of LIP or NSC/KVP or Relief Bond or any other government securities or bank's term deposits of adequate face value after applying 15% margin or mortgage of immovable property of adequate value after applying 50% margin.
  2. If the wife is co-borrower, the maximum amount of loan may be raised to Rs.3.00 lac or 50% of gross annual income of the applicant whichever is lower subject to the condition that the loan amount shall be secured by surrender value of LIP or NSC/KVP or Relief Bond or any other Government securities or bank's term deposits of adequate face value after applying 15% margin or mortgage of immovable property of adequate value after applying 50% margin.
  3. If the wife is co-borrower as well as a working lady or a professional, the maximum amount of loan may be raised to Rs. 4.00 lac or 50% of gross annual income of the couple whichever is lower subject to the condition that the loan amount shall be secured by Surrendered Value of LIP or NSC/KVP or Relief Bond or any other government securities or bank's term deposits of adequate face value after applying 15% margin or mortgage of immovable property of adequate value after applying 50% margin.
  4. Quantum of loan and the margin may be modified from time to time.

Rate of Interest

Interest shall be charged at a rate and in a manner as shall be prescribed under extant guidelines of Head Office from time to time.

Sanctioning Authority

Branch Manager shall be the sanctioning authority for this scheme. However, in case of salaried employees of corporate houses, educational institutions and municipalities/corporations prior consent of concerned RMs shall be obtained. All the sanctions made by the Branch Manager shall be reported to the Regional Managers through the monthly Discretionary Power Statement.

Security for loans in case of salaried as well as professional/self-employed persons

  1. Primary
    1. There shall not be any primary security for loans under these schemes.
  2. Additional
Sl No. Cases covered under para Securities stipulated
1 1.3.1, 1.3.2, 1.3.3, 1.3.4,1.3.5 & 1.3.6 No additional securities should be insisted on
2 1.3.2 At least 20% of the loan amount.
3 1.4 Loan amount shall be secured by surrender value of LIP or NSC/KVP or Relief Bond or any other government securities or bank's term deposits of adequate face value after applying 15% margin or mortgage of immovable property of adequate value after applying 50% margin.

Service Charges / Processing Fees

Service Charge/Processing Fees on the sanctioned loan amount at the prescribed rate should be realised at the time of sanctioning the loan.

Target Group

  1. Regular employees of Central and State Governments, Government/Semi-Government undertakings, reputed corporate houses, educational institutions, corporations and municipalities.
  2. Professional and/or self-employed persons.

Documentation

  1. Demand Promissory Note along with general Letter of Lien from the loanee.
  2. Letter of Assignment for assigning LIP or NSC or KVP or other securities in favour of the Bank and authorizing the Bank to realise the matured proceeds of assigned LIP or NSC or KVP or other securities from respective authorities (wherever applicable) and Letter of set off for Bank's own TD.
  3. Memorandum of deposit of title deed for creation of equitable mortgage, search, marketability and valuation report of the property in case the loan is secured by mortgage of property.
  4. The loanee shall deposit post-dated cheques of other bank for all the instalments of the loan along with irrevocable letter of commitment not to stop the payment of such cheques.

Period of Loan

  1. The loan shall be repaid within a period not exceeding 60 months by equated monthly instalments (EMI) so that net take home salary of the applicant after all deductions, including instalment of proposed loan and loans granted by his/her employer, is not less than 40% of his/her gross salary/Income. It should be ensured that adequate length of service shall remain to cover the proposed repayment schedule.
  2. If the wife is co-borrower, the repayment period may be extended upto 72 months at the consent of the applicants provided net take home salary of the applicant after all deductions, including instalment of proposed loan and loans granted by the applicant's employer, is not less than 40% of gross salary of the husband or gross income of the couple when the wife is a working lady or professional. It should be ensured that adequate length of service shall remain to cover the proposed repayment schedule.

No penalty should be charged for early repayment of loan.

The prospective borrowers under the scheme shall submit their request in the following formats

  1. Application for Personal Loan with a photograph - Annexure - A.
  2. Letter of Authority of Borrower - Annexure – B.
  3. Employer's Undertaking (in the letter head) - Annexure – C.
  4. Employer's confirmation of deduction of Monthly instalment (EMI) - Annexure – F.
  5. Latest salary certificate from the employer of the applicant in case of salaried persons.
  6. A copy of the latest Income Tax Assessment Order and/or a copy of the latest Income Tax Return filed before the IT authorities by the applicant in case of Professional and self employed persons.

Please contact your nearest BGVB branch for further information.
Terms & conditions apply.

 
 
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