CENT BUY

Purpose

To purchase all kinds of consumer durable articles including furniture and fixtures at residence.

Eligibility

All individuals of age 18 years and above who are

a) All Resident Indian individuals who are –
• Permanent salaried employees of Central / State government / Local self government / Defence staff / employees of PSU / Large Corporates / reputed establishments.
• Permanent employees of Govt. aided schools, Colleges, Universities, hospitals and other educational institutions.
• Self-Employed Persons / Independent Entrepreneurs who have regular source of income.
• Farmers irrespective of land holding engaged in production oriented agriculture activities and in other allied activities.
• Staff of our bank.

Finance may be extended individually or jointly with spouse who has regular source of income. Income of spouse may be added to calculate eligible loan amount.

The employees of proprietorship/partnership firm and other small organizations not having job security and persons employed on contract basis are not eligible for loan under the scheme.

Minimum Income Criteria

Salaried Persons: Gross Monthly income Rs.10,000/-

Other than Salaried Persons: Gross Annual Quantum of Finance

In case of salaried employees with monthly income, the loan eligibility is 12 months gross monthly income as per previous month’s salary.

In case of other individuals, average annual Income worked out as per Income tax return of last two years.

However the maximum loan amount should not exceed Rs.2.00 lakhs.
Net Take Home Pay

The sanctioning Authority should ensure that the applicant complies to Net Take Home Pay criteria of 40% i.e. Net Take home Pay after accounting for all deductions including the installment of proposed loan should be minimum 40% of Gross salary.

Zonal Manager is empowered to relax the Net Take Home Pay criteria up to 35% of Gross salary on case to case basis taking in to account income and repayment capacity of the borrower.
Margin 15% of the cost of Articles.

Security For loan upto Rs.50,000/-, hypothecation of goods / articles purchased out of loan.For loan above Rs.50,000/-, in addition to hypothecation, Collaterals equal to 50% of loan amount should be obtained.
Repayment

Repayable in 48 EMIs commencing from the next month of disbursement.

In case of Farmers, the repayment term may be fixed as per harvesting period.

Post dated cheques for the entire repayment schedule should be collected at the time of disbursement of loan.

In case of permanent salaried employees of Govt/Local Self Govt/PSUs/Defence, the condition of post dated cheques may be waived in case -
• they produce an irrevocable undertaking from their employer to deduct the monthly installments from their salary and remit the same to the Bank,
OR
• whose salary is routed through the accounts with Branch

Branches should ensure to encash the cheques on due dates and credit the amount to the loan account.

Rate of Interest Click here to view Interest Rates

Guarantee Personal guarantee should be obtained whose worth is not less than the loan amount except in case of any collateral security is offered, the market value of which is not less than the loan amount.

Sanctioning Authority

All delegates within their sanctioning authority.In case of Staff applicant the sanctioning authority will be as under:
• If applicant is staff and officers up to scale III working in the region and Regional Office, loan will be sanctioned by Regional Manager.
• If applicant is staff and officers up to scale III in ELBs / VLBs, loan will be sanctioned by respective Chief Manager/Assistant General Manager.
• If applicant is officers in scale IV & V in Zone (including Assistant General Managers posted at Zonal Office, Regional Office, ranches, RRBs) and staff and officers in Training Colleges and other Administrative Offices will be sanctioned by Zonal Managers.

• In case of staff and officers posted at Central Office the loan will be sanctioned by CM(CSD) and above subject to the condition that the sanctioning authority is one scale above the applicant.
Processing Charges

1% of the loan amount subject to minimum of Rs.100/-.The amount should be recovered at the time of disbursement.

Disbursement: The borrower should submit a declaration that he/she will be purchasing the articles as mentioned in the loan application and the said declaration will be attached to the hypothecation agreement and would form part of agreement. On the basis of the said declaration the amount may be disbursed to the borrower to the credit of his account.

Documentation Letter of Hypothecation.
Articles of Agreement.
Letter of interest and interest revision letter.
Letter of guarantee wherever applicable,
Letter of undertaking from the borrower for comprehensive Insurance of the articles with bank clause to cover the risk of theft fire, destruction etc.

In case of liquid security like NSC/KVP/FDR/LIC etc are offered, proper charge in favour of bank should be created.
Other terms and Conditions

The application should be in the prescribed format with proper identification supported by documentary evidence.

KYC norms should be strictly followed

Proper documentary proof of income like latest income tax return, salary sheet, Form – 16 issued by employer, land holding details in case of agriculturists should be obtained.

Zonal Manager may sanction take over of good consumer loan accounts from other banks which are regular and standard assets with the existing bank. Such loans can be taken over without insisting for any margin and the borrower should be otherwise eligible for loan under this scheme. However, the repayment period should not exceed the prescribed repayment period under para no. 8 including expired period.

Specific follow up to be made in the accounts where installments are not being paid regularly.

Residential verification & employment verification should be done as per prescribed format.