Book On Staff Loans 15062021 Final

A BOOK ON
LOANS TO STAFF / EMPLOYEES
P D TAYADE , SR MANAGER,
FACULTY, L & DC, MUMBAI. ( 9604179861 ) 01.06.2021
Page 1 of 27
INDEX
SR DESCRIPTION PAGE
NO NO
1 HOUSING LOAN 02
2 VEHICLE LOAN ( 4 WHEELER / 2 WHEELER ) 12
3 CLEAN LOAN OD / DPN 22
4 VSL ( VALUABLE SECURITY LOAN ) 25
5 AGRICULTURE LOAN 25
6 GOLD LOAN 26
7 EDUCATION LOAN 26
8 PENSION LOAN 26
STAFF LOANS
HOUSING LOAN
(Source :- HO CIR 587/2018 , 99/2019, 325/2019, 132/2020, 358/2020,
378/2020)
1) PURPOSE
2) ELIGIBILITY
3) QUANTUM
4) MARGIN
5) ROI
6) NET TAKE HOME
7) REPAYMENT
8) SANCTIONING AUTHORITY
9) INCOME CRITERIA
10)LSR
11)DOCUMENTATION
12)SUBSTITUTION OF PROPERTY
13)OTHER TERMS & CONDITIONS
14)ADDITIONAL HL
15)SUPPLEMENTAL HOUSING LOAN
PURPOSE :-
Sr No PURPOSE
1 Construction of a new house on an existing plot
2 Purchasing a plot and constructing a house thereon
3 Purchase of a vacant ready built house or flat
4 Take over of outstanding institutional liability in respect of housing
loansavailed for acquiring / constructing a house / flat from
institutions / banks
5 Additional construction for enlarging the accommodation of the
existinghouse
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6 Construction of house on leasehold property
7 Construction of house on a vacant plot of land jointly held by the
officer withany other person - the joint owner should create
mortgage of the plot and theproposed construction.
8 Construction of a house on an existing building owned by the
officer jointlywith any other person, other than the spouse and
minor/ major children of the
officer
9 Getting a plot under Co-op., scheme and building a house, where
title will vest on the officer after the house is built.
10 Conversion of hire-purchase into outright purchase of house /
flat from State Housing Boards or similar Govt., controlled bodies
and out right purchase of new ready built house or flat from
Govt.,/
Semi Govt., / local bodies / housing boards / development
authorities etc., and private parties.
11 Purchase of a house / flat under self financing housing scheme
and
Co-operative group housing society.
12 For construction of house on a plot which is earmarked as a
shop-cum residential plot in a residential colony. But, the Bank loan
will be restricted to constructing the residential portion only.
13 HL may be permitted for purchase of properties from close
relatives
excluding his /her spouse & minor /majorchildren.
ELIGIBILITY:- All officer and workmen employees who have completed 2 years
of continuous service are eligible
QUANTUM :-
Cadre Amount In Lakh

Executives VI & VII 125
Executives IV & V 100
Officers I to III 75
Clerical staff 50
Sub-ordinate staff 25
QUANTUM FOR REPAIRS & RENOVATIONS:-

Executives Scale IV & Above 15
Clerical staff 8
Sub-staff 5
Page 3 of 27
Eligible amount for purchase of plot in case of proposals for purchase of site
and construction of house –60% of the loan sanctioned for purchase of plot is
stipulated if the loan is sanctioned for purchase of a plot and construction of
house thereon.
MARGIN :- 10% of the project cost
ROI :-6% p.a. ( Simple)
NTH :- 30% of the monthly gross salary.
REPAYMENT :- 360 Months ( Principal 270 & Interest 90 months)
REPAIRS / RENOVATIONS :- 10 YEARS ( Principal 84 & Interest 36 months)
Maximum repayment period can be 30 years or the period up to employee
attaining 75 years of age , Whichever is lower.
Repament Holiday :--site + construction -18 months , construction by
government agency -36 months , Ready built house- Next month, Ready
built house with modifications -12 months.
SANCTIONING AUTHORITY :-Div Manager, Advances section , CO.
INCOME CRITERIA :- Income of spouse / major children be taken into account
at the time of sanctioning an EHL to determine the Quantum of Loan &
repayment capacity ( NTH) , subject to their joining as co-borrowers and
fulfilling the eligibility norms .
Income includes interest on investment / deposits / rental income / salary
income / professional / business income of self / spouse / major children ,
with adequate proof.
LSR ( LEGAL SCRUTINY REPORT )
In all the cases, the LSR should specifically certify that:--
➢ Officer / spouse / minor / major child is getting absolute ownership
with clear and marketable title / lease hold right for unexpired period
of 90 years with an absolute right to construct the building thereon.
➢ Property owned / being acquired is free from encumbrances.
➢ Proper mortgage is possible to secure the liability.
➢ There is no violation of any law in the matter of acquisition and
obtaining title to the property.
➢ LSR should get approval from R & L Section, Circle Office.
➢ Legal Scrutiny Report (LSR) should be obtained from an Advocate
who is currently in our Panel of Advocates along with the documents
mentioned in the LSR.
➢ LSR should be as per the proforma given in Appendix-2.
Page 4 of 27
DOCUMENTATION
Sr No DOCUMENT
1 NF-523 APPLICATION
2 Details as per Appendix- 1.
3 Legal Scrutiny Report (LSR) as per the proforma given in
Appendix- 2.
4 Branch official has to submit inspection report - immovable
property offered as security to the Bank as per Appendix-29
5 Building plan and construction license approved / sanctioned
by the competent authority
6 Valuation report, in case of built house, prepared and signed by
a
reputed and qualified Engineer / Architect in his letter head as
per the format given in Appendix - 3
7 Construction cost estimates from a reputed qualified Civil
Engineer / Architect.
8 Latest salary Certificate.
9 Housing loan agreement on a non-judicial stamp paper of
requisite
value as given in Appendix - 4.
10 Irrevocablemandate as per proforma given in Appendix – 6
addressed to the branch where the officer s salary is drawn (at
the time of availing the loan) authorizing the bank to deduct the
monthly instalments stipulated from the salary.
11 Mandate for payment of fire insurance premia.
12 Undertaking letter to maintain minimum net take home salary
after
deducting the proposed housing loan instalment at not less than
30% of the gross salary
13 Wherever equitable mortgage of property has been stipulated,
letter
evidencing deposit of title deeds as per specimen given in
Appendix - 7 along with Schedule A & B appended thereto and
the title
deeds and other documents detailed in the LSR.
14 Encumbrance certificate for the last 13 years has to be obtained
before
putting through EMT
15 Further EC should be obtained after putting
through EMT covering the period from the date last covered till
the date
of depositing the title deeds.
16 Instrument of registered simple mortgage of the land and house
wherever registered mortgage of the property is stipulated in the
sanction
17 Certificate of loan papers obtained (NF.482) is to be sent to the
Page 5 of 27
concerned sanctioning authority, duly confirming compliance of
terms
and conditions.
18 Original Sale Deed executed by the Builder in favour of the
Purchaser
19 Original Registration Receipts.
20 Original Stamp Duty Receipts, if any
21 Original receipts issued by the builder in favour of the Purchaser
ofthe Flat.
22 Certified copy of the approved plan.
23 Certified copy of the Building commencement certificate
24 Title certificate issued by the Solicitor / Panel Advocate
25 NOC from the Builder.
26 Confirmation of the lien from the Builder.
27 Architect’s certificate regarding the stage of construction
28 Builder’s Demand Notice.
29 N A Order
30 U L C Order.
31 7 x 12 extract / Index II Copy / property Register card extract
32 Photographs showing the stages of construction
33 In The Case Of Flats Under Construction, Tripartite Agreement
between the Borrower, Builder and Bank
as furnished in Appendix 25.
34 In Case The Plot Is Allotted By The Government / Housing Board
And
Similar Autonomous Bodies, Allotment letter, Payment Receipt,
Registered Lease / Sale Deed,
NOC to mortgage are to be obtained. (All originals)
35 In The Case Of Allotment Of A Plot By The Society, The Following
Documents Should Be Obtained, Deed of conveyance of land
(original)., If the conveyance Deed is not returned by the office
of the Sub -
Registrar - certified true copy of the Deed of Conveyance
(certified
by Registrar)., Original Receipt issued by Registrar, Letter of
authority acknowledged by the Sub-Registrar to collect
the conveyance deed., NOC from the Society. , Extract of the
Resolution , Bye laws of the Society , Payment receipts (original ,
Share Certificate (original). , Title Certificate. , Building completion
and occupation certificate (in the case of ready
built flat). , Photo copy of the N.A Order. , Approved Plan , 7x12
Extract copy / Index II copy / Property Register card extract ,
Building Commencement Certificate.
36 For purchase of a plot and construction of a house thereon,
Authorization letter addressed to the Registrar of Assurances and
undertaking-cum- authority as per proforma given in Appendices
9 &10 ,
Page 6 of 27
37 For ownership flats / Apartments, Pronote cum take delivery letter
in NF 481. , Irrevocable letter of undertaking not to let out or
sublet the flat or
give it on lease & license or part with the possession in any
manner
without the prior consent of the Bank. , Wherever Mortgage of
Apartment is possible under Apartments
Act, Promissory Note (DPN) in NF 480 should be obtained along
with the DPN covering letter as per Appendix - 8, , Authorization
letter addressed to the Registrar of Assurances and
undertaking - cum - authority letter as per proforma in
Appendices- 9 &10. .
38 Supplemental HL agreement should be obtained on stamp
paper of requisite value as per Appendix - 22.
39 NF-546 SPECIMEN SIGNATURE CARD
40 NF-482 CERTIFICATE OF LOAN PAPERS OBTAINED
41 NF-461 LETTER EVIDENCING DEPOSIT OF TITLE DEED
42 NF-462 SCHEDULE A & B
43 NF-967 CERTIFICATE OF COMPLIANCE
44 NF-803 LETTER EVIDENCING EXECUTION OF DOCUMENTS
45 NF-760 AOD IN CASE OF EMPLOYEES WHO CEASES TO BE SERVICES OF
THE BANK OR IS UNDER SUSPENSION
46 HL AGREEMENT FOR EMPLOYEE ON A NON JUDICIAL STAMP PAPER OF
REQUISITE VALUE
47 IRREVOCABLE MANDATE FOR DEDUCTION FROM THE SALARY
48 MANDATE FOR PAYMENT OF FIRE INSURANCE PREMIA
49 UNDERTAKING LETTER TO MAINTAIN NTH AFTER DEDUCTION HL

INSTALLMENTS NOT LESS THAN 30%
50 PRONOTE COVERING LETTER
51 PRONOTE
52 UNDERTAKING LETTER CUM AUTHORITY LETTER
53 LETTER OF REQUEST FOR DISBURSEMENT FOR CONSTRUCTION
54 CERTIFICATE OF INSPECTION
55 EXECUTION OF LEDTD ALONG WITH SCHEDULE A & B AND TITLE DEEDS

AS PER LSR
SUBSTITUTION OF PROPERTY
➢ This facility can be permitted two times i.e., maximum of one
substitution perproperty under EHL, during the entire service of the
officer in the Bank.
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➢ However, Officer is not permitted to substitute the once substituted
property i.e. no repeated substitution is permitted.
➢ Officer intending to avail „substitution of property facility normally is
requiredto offer alternate property as security to HL within the
stipulated time besidescomplying with all other terms and conditions /
norms governing the said facility.
➢ Where such substitution is not possible within 6 months owing to
genuinereasons beyond the control of the officer, DGM / GM of the
Circle may permitfurther extension up to a period of 12 months in
stages.
➢ Each extension shouldnot exceed 6 months.
➢ In other words, the total period to substitute the propertyincluding
extended period permitted should not exceed 18 months from the
dateof availment of the facility.
➢ There is no stipulation regarding period of service and time gap
between theloans availed and substitution sought.
➢ DGM of the Circle is the sanctioning authority.
➢ The outstanding liability in the existing account will be permitted to be
cleared asper the original repayment schedule.
➢ Sale proceeds of the property should be equal to or more than the
liability outstanding under the housing loan account including the
accrued interest.
➢ Sale proceeds equivalent to the housing loan liability outstanding
includingthe accrued interest as on the date of sale are to be kept in
in-operative SBaccount under lien to the Bank.
➢ In case the sale proceeds are less than the housing loan liability
outstandingincluding the accrued interest, the officer should bring in
the differentialamount and the same is to be credited to the in-
operative SB account.
➢ If the alternate property is not acquired within a period of 18 months,
theamount held in in-operative SB account is to be adjusted to the
loan liability and balance, if any, will be released to the officer.
➢ Supplementary agreement as per Appendix - 18 is to be obtained. E M
T of the alternate property is to be obtained as per the existing
procedure.
OTHER TERMS & CONDITIONS :-

➢ EHL ( Employees Housing Loan) can be considered jointly /
individually if both husband & wife are employees of our bank .
➢ Employees can also acquire 2 Houses / Flat within over all entitlement.
Page 8 of 27
➢ In addition to spouse and minor children , major son / daughter can
be joint owners of the proposed house property .
➢ AHL ( Additional Housing Loan ) permitted to employees who have
availed EHL prior to 22.02.2016 on the same house property either on
the name of self / spouse / minor children for renovation / repairs /
additional construction etc.
➢ Insurance premium on loan protection scheme & Applicable GST &
other taxes if any can be included in the project cost while arriving at
Housing Loan Quantum under EHL ( Employees Housing Loan) .
➢ An employee can either avail the loan protection insurance from
CHOICE or any other insurance company approved by IRDA.
➢ The above insurance is in addition to the fire insurance .
➢ Value mentioned in agreement for sale plus GST and also the
premium on loan protection scheme shall be added as part of
Project Cost for assessing the loan amount under EHL ( Employees
Housing Loan) .
➢ HL Limits / liabilities is permitted to be continued on same terms and
conditions as EHL ( Employees Housing Loan) for a period up to 15
years from the date of retirement ( Including voluntary retirement ) or
the ex-employee attaining age of 75 years , Whichever is earlier.
➢ The monthly NTH after taking into account the proposed EHL (
Employees Housing Loan) repayment installment shall not be less
than 30% of the monthly gross salary.
➢ The repayment tenor ( Including continuation of repayment after
retirement ) , shall not exceed the repayment tenor stipulated as per
sanction terms.
➢ In respect of those retired employees who were permitted
continuation of HL liability for a period of 10 years or the ex-
employee attaining age of 70 years are now permitted continuation
of HL liability for a period of 15 years after retirement or the ex-
employee attaining the age of 75 years , Whichever is earlier ,
Provided the total repayment including extended period , shall not
exceed the repayment period originally permitted at the time of
sanction of the loan.
➢ The restriction stipulated on the availability of minimum residual
service is removed and all the employees , irrespective of the
residual service , may be permitted to avail EHL for House / Flat which
is under construction .
➢ In such cases , repayment holiday period of maximum 12 months may
be considered.
➢ The house property acquired under the housing loan should be
inspected immediately on completion of construction / addition /
Page 9 of 27
renovation, repairs etc., and a certificate of inspection as per
proforma in Appendix-17 is to be sent to the Circle Office.
➢ Repayment for the EHL shall be reckoned considering the permanent
source of income i.e. Pension .
➢ The income earned from the investments may also be considered for
arriving at total income / NTH.
➢ Besides , the retiring employee shall give an undertaking to maintain
the minimum required NTH during the pendency of the loan liability.
➢ The condition of maintenance of margin of 40 % on the original
project cost while permitting continuation of EHL of the employees
from the date of retirement including VRS has been waived.
➢ The services rendered by the ex-servicemen employee in the Armed
forces to be considered for arriving at the eligibility criteria in respect
of all loan schemes for employees, including the Housing loan
schemes.
➢ The pension of ex-servicemen employee , received from GOI , shall
be considered for the purpose of calculating NTH for all the loans
under employees loan schemes .
➢ Income of spouse and children to be considered for continuation of
EHL after retirement of the employee, provided at the time of
sanction . their income was considered while arriving at the quantum
of EHL at the time of sanction.
➢ The third Housing Loan availed by the employees either individually or
jointly (Under EHL or HFS scheme ) , shall be classified as CRE-RH.
➢ For such HL , ROI shall be the applicable ROI for CRE-RH on a
compounding basis.
➢ HFS when sanctioned together, validity of sanction of HFS shall be
permitted till 6 months after full disbursement under EHL.
➢ In case of multi-storey buildings / apartments, one time parking space
charges may be included as part of total project cost , subject to
maximum cap of 2% of the total project cost .
➢ The amount to be released only after completion of the flat / or as
agreed upon with the builder.
➢ Generally , loan disbursement up to 3 years is permitted in the case of
construction of flats.
➢ This may be continued up to 5 years, if the agreement so stipulates or
as per the agreement , maximum being 5 years .
ADDITIONAL HOUSING LOAN ( AHL )

(Applicable to both officers & workmen staff)
ELIGIBILITY
Page 10 of 27
Employees who have already availed EHL/AHL previously may avail the
balance eligible amount (i.e., differential between the limit already
sanctioned to the employee under EHL and the revised limits) as AHL
(Additional Housing Loan).
The benefit of differential amount of enhanced quantum of housing loan is
permitted to be made available as AHL to the eligible employees of the
Bank.
PURPOSE
➢ Enlargement, repairs, renovations, completing in-complete house etc.
➢ To clear the outside borrowings of the employee from outside sources,-
both institutional and personal sources taken for the purpose of
completing the house construction or for meeting the differential cost
for acquiring subject to condition that the employee must have
made prior declaration in this regard and proper documentary
proof (complying with any statutory requirements) is to be submitted.
➢ Institutional borrowings shall also include borrowings from our bank
under SHL / Housing finance and any other related borrowings from the
Bank.
➢ In the case of personal borrowings, the sanctioning authority should
obtain adequate proof of such borrowings and satisfy himself about
such outside borrowings.
➢ The loan may also be permitted for clearance of SHL liability with our
Bank / other housing intermediaries including Cooperatives.
➢ The quantum of loan shall be restricted to the eligible amount or the
outstanding liability whichever is less.
➢ To meet / finance the cost of additional construction or any vertical or
horizontal enlargement, repairs, renovations, completing the
incomplete houses of the existing property.
➢ Additional HL shall not be permitted for construction of the second unit.
➢ To meet the differential project cost of acquiring alternate house
property while substituting the existing mortgaged property, where the
housing loan is permitted to be continued.
➢ For acquiring an alternate house / flat with larger accommodation
where the housing loan earlier permitted is closed by disposing of the
property acquired / mortgaged .
QUANTUM

Executives Scale IV & Above 15
Clerical staff 8
Page 11 of 27
Sub-staff 5
SUPPLEMENTAL HOUSING LOAN SCHEME TO EMPLOYEES

(Applicable to both Officers & workmen staff)
ELIGIBILITY
All confirmed employees who have completed 5 years of continuous service
in the bank are eligible for Supplemental Housing Loan (SHL).
Part time employees on time scale wages as well as on full wages are eligible
for SHL.
PURPOSE
To meet the additional cost of construction / acquisition of house / flat over
and above the quantum of HL sanctioned under the Bank s HL scheme.
To repay the outstanding liability availed by the employee from any
institutional sources such as housing finance companies, Housing Boards, Co-
Operative Banks, Cooperative housing societies and Commercial Banks
Where the construction has already commenced / yet to commence and
project s yet to be completed, to meet the revised project cost due to
escalation in cost / increase in built up area etc.
To enlarge the existing accommodation.
For undertaking repairs / providing amenities of permanent nature to the
existing house / flat.
DOCUMENTATION
Supplemental HL agreement as given in the Appendix 26.
DPN in NF 480 and covering letter as per Appendix – 8
VEHICLE LOAN ( 4 WHEELER / 2 WHEELER )
4 WHEELER ( CAR LOAN ) OFFICER EMPLOYEES( PRODUCT CODE 695)

Source :- HO CIR 479/2017 , 325/2019, 132/2020, 441/2020, 530/2020,
798/2020, 824/2020
1) PURPOSE
2) ELIGIBILITY
3) QUANTUM
4) MARGIN
5) ROI
Page 12 of 27
6) NET TAKE HOME
8) DOCUMENTATION
9) OTHER TERMS AND CONDITIONS
PURPOSE :-
For purchase of brand new passenger motor CAR or used passenger motor
CAR of not more than 5 years old ( Either diesel, petrol, LNG, LPG, SOLAR,
BATTERY DRIVEN/ HYBRID ETC)
ELIGIBILITY:-
Confirmed employee & a differently abled ( Divyangjan ) officer employees
QUANTUM :-
For new vehicle :--95 % of the cost of car which includes Insurance ,
registration & taxes subject to maximum Rs. 12 Lakh.
For used car ( Not more than 5 years old ) :-80% of the value as per valuation
report by the qualified automobile engineer or actual purchase
consideration / price or original price , Whichever is least, subject to
Maximum ceiling of Rs. 12 lakh.
MARGIN :- For new brand vehicle 5% , For used vehicle 20%
ROI :-6 % P. A. ( Simple )
NTH :--Not less than 30% of gross salary
REPAYMENT :-180 Months Installment ( 120 towards principal , 60 months
towards interest )
SANCTIONING AUTHORITY :-Div Manager of concerned CO
DGM is the authority who can permit continuation of the loan.
DOCUMENTATION :-
Sr No FORM DESCRIPTION
NO
1 NF-425 APPLICATION FOR ADVANCES TO EMPLOYEES
3 NF-825 AGREEMENT OF HYPOTHECATION OF VEHICLE
4 NF-681 IRREVOCABLE MANDATE FOR DEDUCTION FROM THE

SALARY
Page 13 of 27
5 NF-894 LETTER OF AUTHORITY ADDRESSED TO THE BANK FROM
THE EMPLOYEE
9 NF-373 PARTICULARS OF VEHICLE HYPOTHECATED , THIS

SHOULD BE OBTAINED ON THE DATE ON WHICH THE
BORROWERS ACTUALLY RECEIVES THE VEHICLE
10 APPENDIX DECLARATION TO BE GIVEN BY WORKMEN / OFFICERS

10 FOR AVAILING LHV FOR THE SUBSEQUENT TIME
11 FORM-29 TRANSFER OF OWNERSHIP FORM DULY SIGNED
12 FORM-30 APPLICATION FOR INTIMATION & TRANSFER OF

OWNERSHIP OF MOTOR VEHICLE
13 FORM-35 NOTICE OF TERMINATION OF AGREEMENT OF HIRE

PURCHASE
14 FORM-20 APPLICATION IN THE PRESCRIBED FORM SIGNED BY

THE BORROWER TO THE RTO TO REGISTER THE VEHICLE
IN THE BORROWER NAME , OUR CHARGE TO BE
NOTED IN THE RC
DOCUMENTS TO BE OBTAINED FROM THE STAFF OFFICER WITHIN 2 WEEKS AFTER

DISBURSEMENT .
➢ ORIGINAL INVOICE
➢ SMART CARD
➢ VEHICLE KEY
➢ COPY OF INSURANCE
➢ B-EXTRACT
➢ VEHICLE SHOULD BE VERIFIED PHYSICALLY
➢ STAMPED RECEIPT FROM THE SELLER FOR THE AMOUNT RECEIVED
OTHER TERMS & CONDITIONS

➢ The officer employees should declare in the application form as to
whether the loan application is for the first or the second occasion of
availing car loan.
➢ In case of used CARS , the repayment is restricted to the residual
period i.e. the period up to which RC is valid or within the period for
Page 14 of 27
which the motor car is likely to be roadworthy as per certificate
provided by the qualified automobile engineer.
➢ At the time of retirement ( Including VRS ) , the loan can be continued
at the option of the employee for a further period of 10 years subject
to the conditions that the total repayment period shall not exceed 180
months or the period opted by the officer.
➢ The above provision shall be applicable for existing loans also where
repayment period of 200 months is fixed.
➢ Continuation of limits / liabilities under CAR loan may be for a period of
10 years from the date of cessation of the service or the ex-employee
attaining the age of 70 years , Whichever is earliest , however, it should
be within the maximum period permitted under the scheme.
➢ The enhanced period for continuation of limits / liabilities from 5 years
to 10 years shall also be applicable to the existing accounts where
continuation is already permitted for only 5 years.
➢ Fresh loan / second loan can be permitted even if earlier loan is
existing . In other word, multiple vehicle loans can be permitted within
the overall limit. However, NTH for all vehicle loans shall be 30%.
4 WHEELER ( CAR LOAN ) WORKMEN EMPLOYEES( Prod 690)

SOURCE :- HO CIR 479/2017, 325/2019, 132/2020, 441/2020, 798/2020, 824/2020
1) PURPOSE
2) ELIGIBILITY
3) QUANTUM
4) MARGIN
5) ROI
6) NET TAKE HOME
8) DOCUMENTATION
9) OTHER TERMS AND CONDITIONS
PURPOSE :-
ELIGIBILITY:-
Workmen employees who have put in minimum of 5 years of service and
whose basic pay is not less than Rs. 15360 are eligible.
Page 15 of 27
Physically handicapped workmen employees will be eligible for CAR loan for
purchase of special motor CAR .
QUANTUM :-
towards interest )
DGM is the authority who can permit continuation of the loan.
DOCUMENTATION :-
NO

SALARY

THE EMPLOYEE

Page 16 of 27


PURCHASE

NOTED IN THE RC
DOCUMENTS TO BE OBTAINED FROM THE STAFF WORKMEN WITHIN 2 WEEKS

AFTER DISBURSEMENT .
➢ SMART CARD
➢ VEHICLE KEY
➢ B-EXTRACT
OTHER TERMS & CONDITIONS

➢ Continuation of limits / liabilities under CAR loan may be for a period of
10 years from the date of cessation of the service or the ex-employee
attaining the age of 70 years , Whichever is earliest , however, it should
be within the maximum period permitted under the scheme.
➢ The enhanced period for continuation of limits / liabilities from 5 years
to 10 years shall also be applicable to the existing accounts where
continuation is already permitted for only 5 years.
2 WHEELER LOAN SCHEME TO OFFICERS / WORKMEN EMPLOYEES

SOURCE :- HO CIR 479/2017, 441/2020, 530/2020
1) PURPOSE
2) ELIGIBILITY
3) QUANTUM
4) MARGIN
5) ROI
Page 17 of 27
6) NET TAKE HOME
8) DOCUMENTATION
PURPOSE :-
For purchase of brand new vehicle ( excluding bicycles and mopeds ) or
used vehicles ( excluding bicycles and mopeds ) of not more than 5 years
old.
In case of purchase of used vehicles , the age of the vehicle will be reckoned
from the date of original registration of the vehicle.
ELIGIBILITY:-
All confirmed officers / workmen are eligible
QUANTUM :-
For New 2 wheeler –Rs. 1 lakh or 90% of the cost of the vehicle, Whichever is
less.
For used 2 Wheeler –Rs. 50000 or 80% of the cost of the vehicle
The life tax of the vehicle , registration charges and insurance premium shall
be reckoned to determine the quantum of the loan in respect of 2 wheler
loans.
REPAYMENT :-84 Months Installments ( 66 months towards principal ,18
months towards interest )
DOCUMENTATION:-
NO

SALARY

THE EMPLOYEE
Page 18 of 27




PURCHASE

NOTED IN THE RC
DOCUMENTS TO BE OBTAINED FROM THE STAFF OFFICER / WORKMEN WITHIN 2

WEEKS AFTER DISBURSEMENT .
➢ SMART CARD
➢ VEHICLE KEY
➢ B-EXTRACT
CAR LOAN SCHEME TO OFFICER EMPLOYEES OF OUR BANK AT CONCESSIONAL
ROI WHO ARE NOT ELIGIBLE TO AVAIL UNDER THE SCHEME.
1) PURPOSE
2) ELIGIBILITY
3) QUANTUM
4) MARGIN
5) ROI
6) NTH
7) REPAYMENT
Page 19 of 27
9) DOCUMENTATION
PURPOSE :-
ELIGIBILITY:-
POs with a minimum service of 6 months in addition to all other officer
employee who are not eligible.
No loans under the scheme to officers who are under suspension.
QUANTUM :-
ROI :-MCLR + 0.25 % P. A During probation , 9.5% compounded monthly on
confirmation
towards interest )
DOCUMENTATION :-
NO

SALARY

THE EMPLOYEE
Page 20 of 27




PURCHASE

NOTED IN THE RC
DOCUMENTS TO BE OBTAINED FROM THE OFFICER EMPLOYEES WITHIN 2 WEEKS

AFTER DISBURSEMENT .
➢ SMART CARD
➢ VEHICLE KEY
➢ B-EXTRACT
CLEAN OD / DPN
SOURCE :- HO CIR 32/2013, 210/2017, 478/2017, 15/2019, 24/2019, 368/2020,
625/2020, 798/2020
1) ELIGIBILITY
2) QUANTUM
3) MARGIN
4) ROI
5) NTH
Page 21 of 27
6) REPAYMENT
8) OTHER TERMS & CONDITIONS
9) DOCUMENTATION
ELIGIBILITY:-
All employees including probationers are eligible
Employees against whom action is pending for major misconduct are NOT
eligible
Confirmed employees
QUANTUM :-
One & half month s gross salary for every completed year of service with a
maximum of 15 months gross salary or the following amount , whichever is
lower.
Foe ex-servicemen, the eligibility is 1.5 times of gross salary & 1.50 times of
pension ( if credited to our bank ) for every completed year of service
including service in armed forces or the following amount , Whichever is
lower.
Cadre Total Limit OD Limit permitted of

the total limit
Officers Scale IV TO VII 12 Lakh 4 Lakh
Scale IV TO VII 10 Lakh 2 Lakh
Workmen 6 Lakh 1 Lakh
Sub-staff / PTEs 3 Lakh 0.50 Lakh
Employees under Probation: ( Either as DPN OR OD )
Officer / Managers 1 lakh

Clerks / Sub-staff 0.50 lakh
MARGIN :- NIL
ROI :- 7.5 % P. A compounded monthly
NTH :--Not less than 25% of gross emoluments after reduction of proposed EMI
for DPN or Notional interest per month for OD
REPAYMENT :- Tenability of CLEAN OD is 2 years.
Clean DPN is repayable in 120 EMI , Wherever the service of employee is less
than 10 years , at the option of employee repayment can be restricted to
remaining period of service at the time of sanction, else may be fixed for 10
years by obtaining an undertaking letter from employee to clear the
Page 22 of 27
outstanding liability out of terminal benefits on cessation of services from the
bank.
OTHER TERMS & CONDITIONS :-
➢ If DPN loan availed earlier is closed and applied for new DPN loan
again, the same can be permitted after at least one year gap from the
date of previous availment .
➢ Branches should report out of order accounts to the HRM / HOSA
Section as at the last day of every month.
➢ If an employee closes DPN/ OD account and seeks further DPN / OD
loan at a later date again, the same can be permitted after ensuring
at least one-year gap from the date of previous availment.
➢ In case , employee has secured OD at the time of applying for clean
OD , the same can be continued subject to the condition that
standing instruction for recovery of interest , as and when due, in
respect of secured OD from the salary credit account is obtained and
effected in CBS.
➢ Employee can have any number of DPN accounts at any given point
of time.
➢ The total limit under DPN / CLEAN OD , put together should not exceed
the eligible limit at any point of time.
➢ The overdraft account under this scheme should be maintained at the
salary paying branch only.
➢ On transfer of the employee, the overdraft account should br
transferred to the transferee place at a branch where he/ she draws his
/ her salary.
➢ It will be mandatory for the employees to get their salary credited only
to the clean OD account.
➢ In respect of employees who are placed under suspension , this facility
should not be extended afresh.
➢ The employees are eligible for enhancement in the existing limit on
account of annual increament / CAIIB increament /Promotion WITH 25
% NTH.
DOCUMENTATION
NO
Page 23 of 27
3 NF-480 PRONOTE
4 NF-481 TAKE DELIVERY TO DPN

SALARY
7 NF-736 UNDERTAKING LETTER FOR EMPLOYEES FOR LOANS

THE EMPLOYEE
10 NF-372 REQUEST FOR OVERDRAFT
11 NF-109 ACCOUNT OPENING FORM FOR SB / CA
CLEAN OD / DPN
RENEWAL
NO
2 NF-493 LETTER OF RENEWAL
3 NF-681 IRREVOCABLE MANDATE FOR DEDUCTION FROM

SALARY
VSL ( VALUABLE SECURITY LOAN ) AGAINST TERM DEPOSIT FOR STAFF

FEATURES :--
➢ Loan extended in the form of OD or VSL
➢ To be eligible for concessional rate, the deposit should be earning
interest at preferential rate
➢ Margin :--5% up to Rs. 3 lakh , Above Rs. 3 lakh as applicable to
customer.
➢ Sanctioning Authority :-Branch in charge subject to delegation of
power.
Page 24 of 27
For Loans / Advances 0.25% above the interest paid on
UP TO Rs. 1 lakh deposit at the time of acceptance
of deposit.
Above Rs. 1 lakh up to Rs. 5 lakh 0.25% above the interest paid on
deposit at the time of acceptance
of deposit.
Above Rs. 5 lakh up to Rs. 10 lakh 1% above the interest paid on the
deposits
Above 10 lakhs As applicable to customers
AGRICULTURE LOANS FOR STAFF

FEATURES :-
➢ Maximum loan Rs. 5 lakh for crops purpose & Rs. 10 lakh for non crop
purpose .
➢ Loans can be granted for , Development purpose, Cultivation of crops
, Purchase of tractor / power Triller / Bullock cart .
➢ No loan to pursue allied activities like Poultry, Dairy etc.
➢ Only confirmed employees are eligible
➢ Landed property should have been inherited and not acquired.
➢ The Landed property which the employee including ex-service man
owns should have been granted / assigned / allotted by the GOVT to
employees prior to joining the bank.
➢ The cultivation should be carried on either by hired labour or by
employees family members.
➢ Sanctioning Authority :--Div Manager of the concerned CO.
GOLD LOAN TO STAFF

Other than Agriculture Purpose
➢ Eligibility :-All confirmed employees
➢ Quantum :-Rs. 5000 ( LTV -75% )
➢ Sanctioning Authority :-DGM of CO
➢ Repayment :-24 months
EDUCATION LOAN TO CLOSE RELATIVES OF EMPLOYEE

FEATURES :-
➢ Can be granted to children / close relatives
➢ Employee are NOT eligible for EL to pursue higher education.
➢ Up to scale III , branch in charge , NO powers to sanction loan to
employees minor children and their close relatives.
➢ Loans to close relatives of executives shall be sanctioned by NHA and
not by the themselves.
Page 25 of 27
➢ Officer can stand as co-obligant / Guarantor only if they are
dependent on the officer after obtaining permission from competent
authority.
➢ The stipulation of 50% NTH of gross salary is not applicable if officer /
workmen employees in the case of ELs sanctioned to the children of
the employee.
➢ Wherever EMT of existing HL is stipulated as security for EL , additional
EMT to be put through .
➢ If notional limitr in EMT is sufficient to cover the EL limit including the
existing liability , link letter can be obtained.
➢ ROI :- NIL
PENSION LOAN FOR STAFF

SOURCE :- HO CIR 717/2016, 551/2017, 526/2018 , 66/2020 , 787 / 2020
1) ELIGIBILITY
2) QUANTUM
3) SECURITY
4) REPAYMENT
ELIGIBILITY:-Retired employees of our bank / family pensioners of retired

employees of our bank.
QUANTUM
➢ 20 months pension amount OR Rs. 10 lakh , Whichever is lower. Subject
to maintenance of minimum NTH of 25% of gross pension credited to
the account after deducting the existing and proposed EMI of both
component.
➢ And / or scheme norms of canara pension loan scheme to retired
employees of our bank & their family pensioners who have opted for
the IBA group mediclaim insurance policy. Loan Rs. 90000, max Rs. 10
lakh less existing liability if any , OR Rs. 90000 , Whichever is lower, of the
three.
SECIRITY
➢ Co-obligation of the spouse ( wherever there is a provision for family
pension ) or any other person / pensioner good for the amount, to be
stipulated by the sanctioning authority.
➢ Loan to Family pensioner :-Third party guarantee / co-obligation good
for the amount should be obtained .
REPAYMENT
Page 26 of 27
In 72 EMI if the pensioner is below the age of 65 years at the time of sanction.
In 60 EMI , If the pensioner is above the age of 65 years at the time of
sanction
10 EMI , Irrespective of the age of the pensioner.
****************************************
Page 27 of 27

Book On Staff Loans 15062021 Final

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A BOOK ON

LOANS TO STAFF / EMPLOYEES

Cadre Amount In Lakh

QUANTUM FOR REPAIRS & RENOVATIONS:-

48 MANDATE FOR PAYMENT OF FIRE INSURANCE PREMIA

49 UNDERTAKING LETTER TO MAINTAIN NTH AFTER DEDUCTION HL

50 PRONOTE COVERING LETTER

53 LETTER OF REQUEST FOR DISBURSEMENT FOR CONSTRUCTION

55 EXECUTION OF LEDTD ALONG WITH SCHEDULE A & B AND TITLE DEEDS

OTHER TERMS & CONDITIONS :-

ADDITIONAL HOUSING LOAN ( AHL )

Cadre Amount In Lakh

SUPPLEMENTAL HOUSING LOAN SCHEME TO EMPLOYEES

VEHICLE LOAN ( 4 WHEELER / 2 WHEELER )

4 WHEELER ( CAR LOAN ) OFFICER EMPLOYEES( PRODUCT CODE 695)

2 NF-546 SPECIMEN SIGNATURE CARD

3 NF-825 AGREEMENT OF HYPOTHECATION OF VEHICLE

4 NF-681 IRREVOCABLE MANDATE FOR DEDUCTION FROM THE

6 NF-803 LETTER EVIDENCING EXECUTION OF DOCUMENTS

7 NF-482 CERTIFICATE OF LOAN PAPERS OBTAINED

8 NF-967 CERTIFICATE OF COMPLIANCE

9 NF-373 PARTICULARS OF VEHICLE HYPOTHECATED , THIS

10 APPENDIX DECLARATION TO BE GIVEN BY WORKMEN / OFFICERS

11 FORM-29 TRANSFER OF OWNERSHIP FORM DULY SIGNED

12 FORM-30 APPLICATION FOR INTIMATION & TRANSFER OF

13 FORM-35 NOTICE OF TERMINATION OF AGREEMENT OF HIRE

14 FORM-20 APPLICATION IN THE PRESCRIBED FORM SIGNED BY

DOCUMENTS TO BE OBTAINED FROM THE STAFF OFFICER WITHIN 2 WEEKS AFTER

OTHER TERMS & CONDITIONS

4 WHEELER ( CAR LOAN ) WORKMEN EMPLOYEES( Prod 690)

2 NF-546 SPECIMEN SIGNATURE CARD

3 NF-825 AGREEMENT OF HYPOTHECATION OF VEHICLE

4 NF-681 IRREVOCABLE MANDATE FOR DEDUCTION FROM THE

5 NF-894 LETTER OF AUTHORITY ADDRESSED TO THE BANK FROM

6 NF-803 LETTER EVIDENCING EXECUTION OF DOCUMENTS

7 NF-482 CERTIFICATE OF LOAN PAPERS OBTAINED

8 NF-967 CERTIFICATE OF COMPLIANCE

9 NF-373 PARTICULARS OF VEHICLE HYPOTHECATED , THIS

11 FORM-29 TRANSFER OF OWNERSHIP FORM DULY SIGNED

12 FORM-30 APPLICATION FOR INTIMATION & TRANSFER OF

13 FORM-35 NOTICE OF TERMINATION OF AGREEMENT OF HIRE

14 FORM-20 APPLICATION IN THE PRESCRIBED FORM SIGNED BY

DOCUMENTS TO BE OBTAINED FROM THE STAFF WORKMEN WITHIN 2 WEEKS

OTHER TERMS & CONDITIONS

2 WHEELER LOAN SCHEME TO OFFICERS / WORKMEN EMPLOYEES

2 NF-546 SPECIMEN SIGNATURE CARD

3 NF-825 AGREEMENT OF HYPOTHECATION OF VEHICLE

4 NF-681 IRREVOCABLE MANDATE FOR DEDUCTION FROM THE

5 NF-894 LETTER OF AUTHORITY ADDRESSED TO THE BANK FROM

7 NF-482 CERTIFICATE OF LOAN PAPERS OBTAINED

8 NF-967 CERTIFICATE OF COMPLIANCE

9 NF-373 PARTICULARS OF VEHICLE HYPOTHECATED , THIS

10 APPENDIX DECLARATION TO BE GIVEN BY WORKMEN / OFFICERS

11 FORM-29 TRANSFER OF OWNERSHIP FORM DULY SIGNED

12 FORM-30 APPLICATION FOR INTIMATION & TRANSFER OF

13 FORM-35 NOTICE OF TERMINATION OF AGREEMENT OF HIRE

14 FORM-20 APPLICATION IN THE PRESCRIBED FORM SIGNED BY

DOCUMENTS TO BE OBTAINED FROM THE STAFF OFFICER / WORKMEN WITHIN 2

2 NF-546 SPECIMEN SIGNATURE CARD

3 NF-825 AGREEMENT OF HYPOTHECATION OF VEHICLE

4 NF-681 IRREVOCABLE MANDATE FOR DEDUCTION FROM THE

5 NF-894 LETTER OF AUTHORITY ADDRESSED TO THE BANK FROM