Loans to Pensioners

Type of loan	Medium term loan – Non-agriculture.
Method of Repayment	Non-EMI
Purpose	Marriage / Domestic / Treatment purpose
Eligibility criteria	Pensioners below the age of 75.
Scale of finance	Not applicable.
Limit of loan	Up to Rs: 100000.
Margin	Not applicable.
Holiday period	Not applicable.
Repayment period	60 months or the period at which the loanee attains the of 75 years whichever is less
Rate of interest	As per interest structure.
Penal Interest	2% for overdue installments. When the loan becomes fully overdue 2% of additional interest on contract rate is charged.
Charges	1)   Up to 50000 service charge is collected @ 0.25% of total Loan amount sanctioned. Above        50000 it is @0.5%.this is credited under the head HO Miscellaneous income. 2)   Risk fund @ 0.25% of loan amount is collected from the loanee with a minimum of Rs: 50 and a maximum of Rs: 375. Risk fund collected is kept under Suspense liability and once in a month transferred to HO.
Subsidy/Re-finance	Nil
Security	Personal surety.

This loan is linked with the pension amount, ie, monthly amount should be deducted from the concerned SB account.