Purpose – To extend financial assistance in terms of Cash Credit Demand Loan to meet unforeseen domestic expenses
Target – Individual and association of persons attaining age of majority.
Eligibility – Who posses Bank’s Own deposit (Term Recurring, NSC, KVP & LIC Policy)
Quantum of Loan – Bank’s own deposit Max CCDemand Loan Limit is allowed 90% of the accrued value.
NSC KVP
Less than 1 year – 60% of the accrued value
1-2 year – 65% of the accrued value
2-3 year – 70% of the accrued value
3-5 year – 75% of the accrued value
5 years & above – 80% of the accrued value
Repayment – Loan should be adjusted from the maturity proceeds of the securities, if it remains outstanding till then.
Rate of Interest – Against Bank’s own deposit – 2% above the applicable interest on deposit; Against NSC KVP LIC – 11.50% with monthly rest
Service Charges – Up to 25000- NIL; Above Rs 25000- 1.1236% of sanctioned amount, minimum Rs. 600-
Service charge will not be levied in case of Bank’s own deposit.
Documents – For CC Limit – Apart from lien, pledge or assignment, DP note, letter of waiver & letter of continuity should be taken; For DL – Apart from lien, pledge or assignment DP note, Letter of waiver should be taken.
Others – Before allowing CC facility Current Account should be opened as per extant rule.