Loan Schemes



Eligible borrower :

  • Individuals.
Security :
  • Mortgage of House/Flat along with plot. Collateral security of deposits, LIC policies, NSCs, KVPs, vehicles, etc. may be obtained depending on the risk perspective.
Sureties :
  • Two (one if the borrower assigns in Bank’s favour LIC Policies (at least 5 years premium paid) with sum assured equivalent to loan amount or own deposits equivalent to 50% of loan. )
Margin :
  • As mentioned under separate sub-heading herein
Amount of Loan :
  • Upto 75% of the project cost and subject to credit exposure limit
Rate of Interest :
  • As decided by the Board and HO circulars
Repayment Period :
  • Upto 20 years – depending on the income and the age of the borrower and the amount of loan
Other requirements :
  • Quotations/estimates, permission/license/approvals from competent authorities like Health Dept., Water/Electricity Dept., Municipality/Panchayat, etc. – wherever applicable, copies of approved plans
  • Copies of B/S, P/L A/c, I.T. Returns for last 3 years in case of already existing unit
Documentation :
  • Loan Application in the appropriate Form
  • Joint & Several Demand Promissory Note
  • Agreement for loan
  • Agreement for Mortgage/Hypothecation/Assignment of LIC Policies or any other tangible security acceptable to the Bank
  • Agreement for salary deduction u/s 49 of MCS Act if borrower/surety is/are salaried persons
  • Letter of Continuing Guarantee (in form L-4) for OD limits
  • The financed vehicle/barge/launch/securities should be comprehensively insured against all possible risks