CORPORATION BANK-MITRA

1. Eligibility

All the confirmed Employees/ Executives/ Officials of the LIC of India, LIC Housing Finance Ltd., LIC Mutual Funds and other insurance companies under public sector and their subsidiaries whose salary is routed through our Bank.

In the case of Agents of LIC - a minimum period of 5 years service and are receiving regular commission through the Bank.

The sanction of loan facility may be restricted upto the age of 65 years.

2. Purpose

To meet personal/ domestic expenses/ contingencies

3. Amt. of Finance

The maximum loan amount shall be

a) restricted to 12 months' gross emoluments in the form of Clean Demand Loan subject to EMI not exceeding 50% of takehome pay without quantitative restrictions.

b) restricted to 6 months gross emoluments in the form of clean Overdraft without quantitative restrictions.

Over Draft facility will be made available only to the employees of LIC of India, LIC Housing Finance Ltd., LIC Mutual Fund and New India Assurance Co Ltd.

In the case of Agents of LIC, the eligible Demand Loan / Overdraft limit is to be fixed at 60% of the average annual commission receipts during the immediate preceding 3 financial years with a maximum of Rs.1.50 lakh without any security and the balance with collaterals.

4. Nature of facility

Either as Demand Loan or Clean Overdraft limit

5. Rate of Interest

For Demand Loan /Overdraft - 13.75% w.e.f. 03.02.2009

6. Repayment

The Demand loan is repayable within a maximum period 60 months in Equated Monthly Installments. The Loan / OD to be repaid in full before the retirement of the employee subject to annual review

7. Securities

No securities insisted upon for the overdraft facilities to the Executives/Officials/Employees of LICI, LICHFL LICMFLand NIACL.

In the case of loans to the Agents of LIC exceeding Rs.1,50,000 the facility should be fully secured by collaterals like NSCs (with margin of 15% on face value) and/or LIC policies (with a margin of 10% on Surrender Value).

8. Guarantee

Third party guarantee is mandatory in the case of class-II, III and IV Employees of LIC and all insurance cos and Agents of LICI [ Guarantee of other employees of insurance cos. An employee/ agent can guarantee one loan]. A third party guarantee may also be obtained.

In case of loans sanctioned to LIC Agents, the loan shall be guaranteed by another LIC agent/LIC employee having reasonable level of income and networth.

9. Service Charge

NIL