Salaried Workers Loans

Posted on: 29 September 2022

Salaried Workers Loans

These shall be loans to various employees of private and/or public institutions and pensioners whose monthly salaries, allowances and other remunerations pass through any Branch of the Bank.

1.      To be eligible for this facility applicant should have operated with the bank for at least one (1) month.

2.      All loan applications shall be properly evaluated by the Credit Department before disbursement.

3.      Applicants shall complete and sign the prescribed loan application forms and the completed forms should be endorsed by their employers.  In the case of pensioners, completed and signed loan application forms should be certified by accredited officials.

4.      At least two (2) salaried workers who collect his/her salary through the Bank shall guarantee the loan.

5.      Loans shall be disbursed to applicants within 1-10 days after approval of loans, all other things being equal.

6.      Loans shall be repaid on monthly installment basis.

7.      Duration of loans shall not be more than 36 months for employees with public institutions and 24 months for those with private bodies. However, loans beyond this period shall be approved by the Administration, Credit and Marketing Committee (ACM)/Board where applicable.

8.      There shall be no cash lien on loans.

9.      Loan repayment shall not exceed 85% of monthly salary unless otherwise approved by the ACM committee.

10.  Commitment fees charged on salaried loans shall be 6%

11.  Salaried earners may request for a repeat loan when over 50% of the existing facility has been repaid.