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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
Date: 12.10.2017
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:
Amount
Rate of Interest
Margin
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.
5.00%
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:
Amount
Rate of Interest
Margin
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.
(Punit Jain)
GENERAL MANAGER

13-10-2017

PERSONAL LOAN SCHEME FOR PENSIONERS

(RBD (A) Circular No. 60/2017   10.08.2017)

1. ELIGIBILITY

All types of pensioners drawing pension through our branches.[This includes family pensioners, ex-employees of our Bank, PNB’s pre 1986 retirees getting ex-gratia, and those Pensioners whose pension is being received by the Bank through Department of Pension Disbursing Offices (DPDOs)].

2. PURPOSE

To meet personal needs including medical expenses.

3. LOAN AMOUNT

3.1 – Minimum eligible loan amount of Pension Loan shall be Rs.25, 000/-.

3.2- Maximum loan amount:

All deductions including the proposed Pension Loan instalment should not exceed the prescribed ceiling as per Para 7.1 given below.

4. NATURE OF LOAN

The loan amount may be disbursed through Demand Loan/Term Loan/ Current Overdraft Account on monthly reducing DP basis. (As OD is self-liquidating in nature, it should be preferred to other options).

5. MARGIN: Nil : Age of Borrower Loan Amount: Age upto 70 Years 18 times of net monthly pension (20 times in case of Defence  pensioners) OR Max. Rs.10.00 lac, whichever is lower. Above 70 years and upto 75 years 18 times of net monthly pension (20 times in case of Defence Pensioners) OR Max. Rs.7.50 lac, whichever is lower.

Above 75 years 12 times of net monthly pension OR Max. Rs. 5.00 Lac, whichever is lower.

6. INTEREST RATE : In terms of IRMD circular issued from time to time presently IRMD circular no. 20/2017 dated 03.03.2017 as under:

Based on MCLR of 1 Year: Demand Loan/ Term Loan/ Overdraft :MCLR+ 2.80% (w.e.f. 01.03.2017) Intt. Table Code : PTPEM

7. REPAYMENT

Loan along with interest is to be repaid in maximum 60 equal monthly instalment commencing one month after disbursal of the loan. The OD limit along with interest is to be adjusted in maximum 60 months on monthly reducing DP basis (equal to EMI) commencing one month after disbursal of loan. In respect of pensioners above the age of 75 years, repayment period shall be of maximum 24 months. However, sanctioning authority may allow repayment period maximum of 48 months depending upon merits of the case.

7.1 Permissible Deductions: Repayment should be fixed on a realistic basis, which should not exceed the prescribed limit of Net Monthly Pension (NMP) of the borrower. NMP is equal to {Gross Pension – Statutory Deductions such as Income Tax etc.} For this purpose, all deductions including the proposed Pension Loan installment should not exceed the prescribed ceiling as under:

 

NMP Max. Permissible Deduction of NMP
Up to Rs.30000 50 %
>Rs.30000 to Rs.60000 50 %
>Rs.60000 to Rs.100000 50 %
>Rs.100000 50 %
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”

10. SECURITY

_ 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.

12. DISBURSEMENT

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.

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