Advances against deposit to staff members at concessional rate & margin (Circular HRDD 763 dated 12.10.2017)
PUNJAB NATIONAL BANK
HUMAN RESOURCES DEVELOPMENT DIVISION
H O: 7, Bhikhaiji Cama Place, New Delhi – 110 607
TO ALL OFFICES
HRDD CIRCULAR NO 763
Reg : Advances against deposit to staff members at concessional rate & margin
In terms of extant guidelines, interest rate and margin on advance against deposit to members of staff/ honorably retired/ Voluntarily retired/ widow of staff is as under:
Rate of Interest
Advance against term deposit upto Rs. 3 lacs
At the same rate as allowed on the relevant deposit held by the member/ honorably retired ex-members of the staff singly or jointly with their spouse or children and widows of staff singly.
Advance against term deposit above Rs. 3 lacs
At rate as applicable to public
As applicable to public
2. References have been received from the field for upward revision in the existing ceiling of Rs. 3.00 lacs for advance to bank’s staff against their term deposits at concessional rates. Similar demand has also been received from majority officers’ Association, AIPNBOA and majority workmen Union, AIPNBEF.
3. We are pleased to inform that Board in its meeting dated 27.09.2017 has approved enhancement of the ceiling on advance against own deposit from Rs. 3 lacs to Rs 10 Lac at the same rate as paid on term deposit to members of staff/ honorably retired/ voluntarily retired/widow or widower of staff.
Accordingly, the interest rate and margin on advance to members of staff/ honorably retired/ voluntarily retired/ widow or widower of staff against own deposits is revised with immediate effect as under:
Rate of Interest
Advance against Term Deposit upto Rs. 10 lacs
At the same rate as allowed on the relevant deposit held by the members of staff /honorably retired/voluntarily retired members of the staff singly or jointly with their spouse or children and widow or widower of staff singly.
Remaining maturity at the time of granting advance:
upto 5 years : 5 %.
above 5 years : 10 %.
Advance against Term Deposit above Rs. 10 lacs
At rate as applicable to public.
As applicable to public.
All concerned are advised to note for compliance.
|Further, Circle Head/ COCAC & above, shall permit higher %age deduction of NMP subject to Maximum 10% over & above the prescribed ceiling under each bracket of NMP on individual merits of the case and after ascertaining expenditure pattern of the prospective borrower, i.e., Circle Head/COCAC & above may permit deductions of NMP MAXIMUM upto 60%
Further, Circle Head/ COCAC & above, shall permit higher %age deduction of NMP subject to Maximum 10% over & above the prescribed ceiling under each bracket of NMP on individual merits of the case and after ascertaining expenditure pattern of the prospective borrower, i.e., Circle Head/COCAC & above may permit deductions of NMP MAXIMUM upto 60%.
Note: Repaying capacity/ assessment of loan be arrived at on the basis of latest
pension of the borrowers.
8. UPFRONT FEE Nil
9. Documentation charges: Rs.500/- + Taxes
Credit the fee-based income collected by way of Processing Fees/ Upfront Fees and
Documentation Charges in Revenue Sub-Head “<sol id>2032504”
_ Guarantee of spouse eligible for family pension to be obtained.
_ Where loan is given to family pensioners, guarantee of earning children (Preferably Govt. Employee) to be taken. If no earning children, Third party guarantee with net means of equal or more than loan amount, to be taken.
11. LOANING POWERS
As per vested loaning powers subject to ceiling of the Scheme.
The loan amount shall be disbursed through Demand Loan / Term Loan or Current Overdraft Account of the pensioner opened/ to be opened for the purpose.
13. DOCUMENTATION (Annexures available at the branch)
1 Letter of Request- ANNEXURE – II; 2 Letter of Authority- ANNEXURE – III;
3 Letter of authority (in duplicate) to be taken in case of DPDO Pensioners –
ANNEXURE – IV. The same be sent by registered post to the DPDO along with information in writing regarding disbursement of the loan to the concerned pensioner. Further, an Affidavit may be obtained from the concerned pensioner that he/she shall not change his/her present disbursing branch/bank without bank’s consent.
4 Overdraft agreement PNB-727; 5 Guarantee – PNB 58 H.; 6 Promissory Note – PNB 728 (in case of DL).
14. OTHER GUIDELINES
i) The loan can be availed more than once only after adjustment of earlier loan subject to satisfactory conduct of earlier account(s).
ii) In case of pensioners availing the facility through demand/term loan, the branches to ensure that the monthly loan installment is recovered on the date of crediting monthly pension in the account.
iii) In case of Overdraft, the pension of borrower should directly be credited to OD account, which will immediately reduce the Drawing Power, by the amount of EMI thereby leaving little room for default on account of deliberate withdrawal by the pensioners without providing for EMI.