Loans and Advances Interest Rates

 

Type of Loans & Advances

Size of Loans  & Advances

New rate of Interest (as discounted) effective from 18/07/2011

Rate of Int. (%)

Rebate (%)*

Penal rate of int. (%)

Mode of Calculation

* Term Loan

Upto 25000

11.25

0.50

1.00

Compounding at Monthly Rests (every month to be reckoned as 30 days)

Above 25000 to 2 lac

12.50

Above 2 Lac to 5 Lac

13.00

Above 5 Lac

13.25

Cash Credit & Overdraft

Upto 25000

11.50

0.50

1.00

Compounding at Monthly Rests (every month to be reckoned as 30 days)

Above 25000 to 2 lac

12.75

Above 2 Lac to 5 Lac

13.50

Above 5 Lac

13.75

Overdraft against full coverage of Bank's own Time Deposit and others

i) Our Bank's time deposit / Daily Deposit

upto 90 % of present value for any purpose other than speculative one

1.5% over the payable (Simple / Compound as the case may be) rate/ average payable rate as rounded upto nearest higher multiple of 0.10

ii)Against Lien / Pledge / Assignment of Postal Time Deposit KVP, NSC & LIC Policy

upto 85 % of present value for any purpose other than speculative one

12.50

0.00

0.00

Compounding at Monthly Rests (every month to be reckoned as 30 days)

Demand Loan

A. Against Mortgage of GOLD ornaments

Upto 50,000

12.50

0.50

1.00

Compounding at Monthly Rests (every month to be reckoned as 30 days)

Above 50,000 to 3 Lac (5 Lac per family)

13.00

B. i) Our Bank's time deposit / Daily Deposit

upto 90 % of present value for any purpose other than speculative one

1% over the payable (Simple / Compound as the case may be) rate/ average payable rate as rounded upto nearest higher multiple of 0.10

ii)Against Lien / Pledge / Assignment of Postal Time Deposit KVP, NSC & LIC Policy

As per order  no 02/2007-2008 dated 11.04.2007

12.50

0.00

0.00

Compounding at Monthly Rests (every month to be reckoned as 30 days)

           

* Used vehicle over the age of 6 (six) years will not generally be accepted for loan. Maximum period of repayment of Loan against used vehicle will be 54 (fifty four) months including the gestation period, if any.

 

SCALE OF FINANCE AGAINST PLEDGE OF GOLD ORNAMENTS

Order No. 22/2010-11                                                                                     Date: 26.11.2011

Whereas it is observed that the price of gold in the market is steadily increasing day by day: And whereas there is a constant demand of the consumer for enhancement of scale of finance for loan against gold ornaments.

And whereas the matter was reviewed thread bare in the meeting of the Board of Directors held on 26.11.2011 and it is resolved to revise the scale of finance against pledge of gold ornaments.
Now, therefore, pursuant to the aforesaid decision of Board of Directors and in modification of this office
order No. 22/2010-2011 dt. 25.11.2011 it is hereby ordered that with effect from 1st December 2011 loan against security of gold ornaments shall be made according to the following policy.

Parameters

Existing Policy
Form 01-12-2010 to 30-11-2011

Revised Policy form
01-12-2011

Eligibility

A well introduced nominal member or an existing ordinary member.

No Change

Purpose

Agricultural, non agricultural or any other propose as approved in the by laws except speculative ones.

No Change

Title of ornaments to be pledged

Advance can be made only to a true owner after obtaining a declaration to the effect that ornaments are his/ her own property.
                                         
No advance shall be made to a money lender against re-pledge of ornaments held as security against loan made by him.

No Change.

Sanctioning Authority

Branch Manager or in his absence the authorized officer in charge of branch is authorized to sanction the loan as per order no. 10/87-88 dated 28-08-1987 as revised upto date and as may be revised hereafter subject to ratification by Board in the next meeting.

No Change.

Ceiling of Loan

 

Rs.300000/- (Three lacks) per individual but 500000/- (Five Lacks) per family.

No Change

Linking of share

  1. Up to Rs.50,000/- (fifty thousand) – a nominal member or an ordinary member irrespective of value of his /her share holding
  2. Above Rs.50,000/- (Fifty thousand) - Only an ordinary member holding share  at least @ 2.5% of the loan amount subject to multiple of Rs. 20/-

No Change

Basis of Valuation &

 

 

Mode of Calculation of Loan

Rs. 12860/-(Twelve Thousand Eight Hundred Sixty)per 10 grams of net weight of gold contents          

 

Rs. 9000/- (Nine Thousand) per 10 grams of net weight of gold contents.

Rs. 21450/-(Twenty One Thousand Four Hundred Fifty)per 10 grams of net weight of gold contents          

Rs. 15000/- (Fifteen Thousand) per 10 grams of net weight of gold contents

Margin to be retained

30.03%

30.07 % (approx)

Slabs for rate of Interest and mode of Charging of interest.

Upto Rs. 50000 and above Rs. 50000 as per order no. 21/2009-10 dated 23-12-2009 to be compounded at monthly rests and as may be revised hereafter.

No Change

Repayment period

Within twelve months from the date of loan either by unusual installment or by a lump-sum upto loan limit of Rs.1,00,000/- only  according to the convenience of the borrower. No part delivery of Pledged Ornament shall be allowed against part payment.  On full payment of Loan & Accrued Interest, delivery of the Ornaments to the borrower against surrender of the receipt which will be made obtaining an acknowledgement by the borrower that the article have been received back in full and perfect condition.

No Change

Recovery

By public auction sale if not repaid within 26 (twenty six) months even after issuance one reminder notice after twelve months from the date of loan by ordinary post and another (but last) to the registered address of the borrower by registered post.

No Change

 

* Rebate at the declared rate for Term Loans will be allowed to those who will make payment according to schedule, however, advance twards Principal may be accepted but no rebate will be allowed if the borrower fails to pay monthly interest usually. In case of Cash Credit and Overdraft accounts, rebate will be allowed to those who will pay the interest within 90 days from he date of last payment regularely and make turn-over of at least 60 % of sanctioned limit during the quarter ending on June, September, December and March. Fraction period of a quarter, if any, to be ignored. Rebate for Demand Loan ( Loan against Pledge of Gold Ornaments) will be allowed to those who will pay the interest within 90 days from the date of drawal / date of last payment regularely.

* Penal Rate of interest at any point of time will be charged, till the defaulted amounts are liquidated in full, from the date of last payment on failed amount of installment only when the failed amount of installment is less than equal to three installments and on the entire outstanding balance if the failed amount of installments become more than three installments.