Surety loan is a personal loan meant to meet the personal needs of common men, or salaried employees working in Government, aided, Co-operative, self-finance institutions up on the security of salary deduction certificates.

Purpose

a. Purchase of consumer durables, computers, professional equipments etc.

b. Marriage expenses of self, son, daughter or a dependent near relative.

c. Medical Expenses incurred/to be incurred for self, spouse, children, dependent near relative.

d. For education of self/spouse/ children/ near dependent relatives.

e. Any other personal expenses of bonafide nature.

Eligibility

A class ir D Class members or employed in Government department, local bodies, co-operative Institutions, Banks, Government Company and Corporations, well-known Public and Private Companies, and well-known Private Institutions in the area.

Security

Surety loans are unsecured loans issued against 2 A class members- personal surety agreements or salary certificates and recovery agreement constituted by sureties and drawing officers.

a. The Salary certificate for the purpose shall be of Government department, local bodies, co-operative Institutions, Banks, Government Company and Corporations, well-known Public and Private Companies, and well-known Private Institutions in the area.

B. Conditions :

c. There should be at least 5 years of service remaining for the borrower /surety for a five-year term loan.

d. Proportionate reduction in the term of the loan shall be made if the borrower /surety is having the remaining service of below 5 years.

e. The salary deduction agreement signed by drawing officer should be submitted in the prescribed form.

f. If the salary deduction certificate of the drawing officer itself is submitted as a security for loan, the certificate shall be countersigned by the treasury officer or his immediate superior officer.

g. The loan will be sanctioned only after getting the confirmation from the authorities.

H. Procedure

i. The application for a Consumption Loan has to be submitted along with the duly filled up authority letters, Salary deduction agreements, Salary certificates and all the papers related to KYC norms.

j. Branch manager, after making a detailed scrutiny, should report over the application and has to submit the application to the Head Office along with detailed appraisal report.

k. After a further verification of requisites, the loan applications will be sanctioned depending upon the merits of the case.

l. Copy of the identity card as per the KYC norms.

M. Charges and other costs

n. The charges levied are forms, insurance, notice and miscellaneous charges.

o. Period

p. Upto 60 months

q. Eligible amount

r. The sanctioning amount shall not exceed 10 times of net monthly emoluments of salaried employees.

s. Surety under salary certificate Maximum Rs. 200000/-

t. 2 A class or D Class Members surety maximum Rs.25000/-

u. share linking is 5%.

V. Repayment

w. Monthly instalment.

X. Rate of interest

y. To see the interest rate please visit the page interest rate.