Eligibility

Purpose

Class I Officers in administrative service in I.A.S., I.P.S., I.F.S. and I.R.S. Officials . Defence Personnel in the rank of Captain and above.

To meet out expenses towards Educational/Purchase of equipments/vehicles/marriage/house hold/ other family functions/medical/Travel etc.

Maximum Loan Limit

Nature of Loan

10 times the gross monthly Salary or Rs. 3 lakh whichever is less – Minimum Rs.50,000.

Either as Term Loan or as Overdraft Facility.

Period of Loan

Repayment

3 years (max.)

• If Term Loan : 36 Equated Monthly Instalments
• If OD : DL to be fixed for every month by reducing instalment amount and drawal to be allowed within DL. Interest to be  serviced as and when charged.

Rate of Interest

Margin

12.00% floating

NIL

Added features

• In case of OD account, any surplus amount on hand if parked temporarily will reduce the interest burden on loan and the amount can be drawn as and when needed.
• At par encashment of cheque upto Rs.10000 at any branch of Indian Bank.
• Free ATM Card, Free Demand Draft, Telegraphical Transfer (except payment of telegram charges & priority allotment of lockers).

Other Terms

• Salary Cheque to be credited in the account with us every month, wherever the account is maintained with our Bank. 40% take-home pay should be maintained, in case loan is availed in the form of Term Loan.
• Loan account will be transferred to the nearest branch at the place where the Official is transferred.
• Applicant to submit Application, Photo, Latest Salary Certificate, Assets & Liabilities Statement and undertaking letter to remit monthly instalments every month.
• Wherever operative accounts are maintained with us, the salary cheque will be credited to the loan account in case of OD Facility and  withdrawal against cheque will be allowed within the Drawing Limit.
• In case of Term Loan, Salary Cheque to be credited to SB account and loan instalment will be recovered from SB as first debit.
• Demand Promissory Note to be executed by the borrower.
• Undertaking letter to be submitted by applicant for adjustment of loan account in full, in case the borrower leaves the service for any reason before adjustment of loan.