Purpose – The loan is offered for any personal use
Quantum of Loan – Loan may be granted up to 60% to 75% of the market value of NSC/KVP; fixed loan may be granted to the extent 75% of the surrender value of the LIC Policy
Period – Period 36 months to 60 months
Guaranty – Only two guarantors
Mode of Repayment – Post Dated Cheques or Standing Instructions or ECS
Margin – Advance to be granted only to the existing good customers.
Premium payment must be up to date
Others – No loan to be granted against LIC Policy in the name of minor and policy covered under married women’s property act.
Policy must be assigned in favor of the bank. Policy holder’s age should be admitted on policy. Advance against endowment policy only. Proceeds in r/o money back policies to be credited to loan a/c. No advance against third party security. Latest premium receipt to be obtained and kept on record
The other loan schemes of the bank include home loan scheme, personal loan, vehicle loan , mortgage loans etc.