Eligibility |
-
All regular and service confirmed
government employees/employees of government corporations,
joint corporations and other financial institutions
including bank employees with a minimum monthly
salary of Nu 10,000.00 will be eligible for the
loan for purchase of car.
-
Other employees whose monthly
salary is less than Nu 10,000.00 will be eligible
for purchase of two wheelers only under the scheme.
(The loan will be granted provided total deductions
from the salary on account of all borrowings including
this loan from the Bank as well as other sources
and all deductions like Provident Fund, salary tax,
health contribution and GIS deduction etc. do not
exceed 60 % of gross emoluments. In other words,
the loan shall not be granted if the ‘net
take home pay’ of any employee falls below
40 % of gross emoluments).
-
An employee whose salary is less
than Nu 10,000.00 will also be considered for a
loan for purchase of car under the above scheme
provided his/her spouse is also employed in government
department/government corporation/joint corporations/FIs.
In such cases the guarantee of the spouse will also
be obtained as additional guarantor. Further, the
loan will be granted provided total deductions from
the salary on account of all borrowings including
this loan from the Bank as well as other sources
and all deductions like Provident Fund, salary tax,
health contribution and GIS deduction etc. from
the salary of both husband and wife do not exceed
50 % of gross emoluments. In other words, the loan
shall not be granted if the ‘net take home
pay’ of both husband and wife falls below
50 % of their gross emoluments. All other terms
and conditions will remain the same as per the scheme.
|
Purpose |
The loan will be
granted for purchase of a new car/scooter/motor cycle
for the personal use of the employee. |
| Quantum of Loan |
75% of invoice value
of the vehicle being purchased or a maximum limit of
Nu 1,000,000.00 whichever is lower.
|
Rate
of
Interest |
12 % p. a. with quarterly rests, subject
to change from time to time.
|
Repayment
Period |
The entire loan
with interest should be repaid in a maximum of 84 equal
monthly installments in respect of loan for purchase
of Car and 72 equal monthly installments in respect
of Scooter/Motor Cycle from the salary of the employee.
The first installment commences from the month following
the month of release of the loan. |
| Security |
- The vehicle to be purchased out of Bank’s
finance should be hypothecated to the bank and the
Bank’s charge should be registered in the books
of the RSTA within one month of the purchase of the
vehicle. The borrower will be required to furnish
a copy of the Registration Book for Bank’s record
after recording of Bank’s hypothecation charge
therein by the RSTA.
- Third party guarantee of a regular employee from
the same department having put in 3 years of confirmed
service with at least equal grade of the applicant.
- Third party guarantee of the spouse, wherever necessary.
|
| Margin |
25 % of the cost of the vehicle (minimum). |
| Insurance |
The vehicle should
be comprehensively insured duly incorporating the Bank’s
interest clause from the date of purchase of the vehicle.
A copy of the insurance policy document should be submitted
to bank’s branch within one month. The insurance
policy should be renewed by the borrower after its expiry
till the currency of the loan. |
Documents
Required |
-
Salary
slip and recommendation from the Employer.
-
Letter
of Undertaking from employer for loan instalment
recovery from employees' salary.
-
In case
of 2nd hand vehicle finance (vehicle should not
be more than 3 years old) following documents are
required:
- Sale Deed agreement
between seller and buyer.
- Vehicle valuation certificate
from authorised Workshop
- Comprehensive Insurance
Policy document.
-
Copy of
Allotment Letter and Import Licence (in case of
vehicle quota allotment).
|
Disbursement
of Loan |
The loan amount along
with applicant’s stake will be disbursed by means
of an account payee draft in the name of the supplier/dealer
after execution of prescribed security documents. |
| Inspection |
The Bank reserves
its rights to inspect the vehicle and registration documents
at regular intervals. |
| General |
-
An employee already enjoying
a loan under the existing scheme will not be eligible
for a fresh loan till the existing loan is fully
repaid.
-
The revised loan amount is
applicable to fresh applications only.
-
The bank will be at liberty
not to entertain recommendations for sanction
of loans by such departments, whose employees’
existing loans have not been conducted satisfactorily
and have been rendered irregular.
-
Applications for loans under
the scheme on the standard forms duly filled in
and completed in all respects should be sent by
the concerned departments/organizations to the
Bank’s branch at the centre where the applicant
employee is posted.
-
An irrevocable letter of authority
from the applicant to his employer for deduction
of installments at source and a letter from the
employer agreeing for the same should be submitted
along with the loan application as per Annexure
II & III respectively.
-
Proof of income: Latest salary
slip with authorized signatory should be submitted
along with the loan application.
-
Photo copies of ID cards of
the applicant/surety should be attached with the
loan application form with 2 copies of recent
photographs each.
|
| Inspection |
The employer organization will be primarily
responsible for: -
-
Authentication of particulars
of applicant and surety incorporated in the application
forms and recommending the loan for sanction.
-
To ensure recovery of the loan
installments of its employees from their respective
salaries and depositing the same with the Bank’s
branch regularly every month.
-
Recovery of installments/ balance
of dues from the salary of the surety in case
of any default / non availability of borrower’s
salary for deduction for any reason whatsoever.
-
Incorporating the particulars
of employee’s Bank loan deduction in the
last pay certificate in the event of transfer
of an employee to other department/ organization
to which the scheme is applicable.
-
Recovery of entire loan outstanding
with up-to date interest from the terminal benefits
of the employee in case of retirement, resignation,
dismissal or cessation of service for any other
reasons.
-
For payment of balance dues
of an employee from its own resources in case
the loan is not fully liquidated from the recovery
of the employee’s salary/ terminal benefits
or those of the sureties.
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