Loan Scheme for Domestic Helpers



Particulars Terms &Conditions
Eligibility Criteria Any Individual working as domestic servant, sweepers, Baby-sitters, Car Drivers, etc. The residence/place of work of the Proposed borrower should be within the branch command area
Age Criteria Minimum : 18 years
Maximum : 60 years
Purpose Personal Need / Contingencies
Income Criteria The minimum net earnings per month is Rs. 5000/-
Facility Term Loan
Amount Maximum Loan amount Rs. 25,000/-, An individual will be permitted to take multiple loans so long as the total amount does not exceed Rs 25,000/-.
Rate of Interest 16 % for a single loan & 18 % for multiple loans
Period 6 months but not more than 12 months, depending on repayment capacity and age of Applicant
Charges
  • Processing Fees : Rs. 150/- plus Service Tax as applicable. If facility is not sanctioned / unavailed 50% of processing fee may be refunded.
  • Foreclosure Charges : N.A.
  • Pre-payment Charges : N.A.
  • Share Linkage : Proposed Borrower and sureties / guarantors to be made ordinary members through subscription of bank shares of Rs. 110/-.
Margin NIL
Securities NIL
Guarantors Guarantee of the Employer must and one guarantor from family of applicant i.e. Spouse / Father / Mother / Brother
Classification Priority Sector
Disbursement Through the Savings Account of the Applicant
Documents

a) Documents required to be submitted with Loan Proposal

For Applicant:

  1. Form No. 23 Application for Loan duly filled in all respect.
  2. Form No. 85 Personal data-cum-Letter of Consent from sureties/guarantors.
  3. Form No. 22 Application for Nominal Membership from Applicant and Sureties/guarantors.
  4. Two Passport size Photographs of Applicant and Sureties/guarantors.
  5. Income Proof : income declared by way of affidavit is acceptable


For Branch :

  1. Account opening formalities with “KYC” to be completed.
  2. Form No.22, 23 and guarantor consent letter should have been filled up in all respect, no columns are left blank, overwriting /striking is to be authenticated.
  3. CIBIL Report to be generated for Applicant and guarantors.
  4. Pre-sanction visit report in our prescribed format to be submitted duly signed by branch-in-Charge stating the details of the work and address of residence of the proposed borrower & guarantors etc
  5. All documents / papers / statements must be properly scrutinized & branch must verify with originals and certified by branch official as ‘verified with originals’.
  6. Proposal shall be processed in our prescribed format.
  7. Applicant/Guarantors’ signatures should be verified from their banks if they are not our account holders.
  8. Proposed Borrower and sureties / guarantors to be made share member through subscription of Rs. 110/-.


b) Documents to be executed / submitted after the sanction but before the disbursement

For Applicant:

  1. Form No. 24 - Demand Promissory Note.
  2. Form No. 33 – Agreement for Loan (Rs.100/- stamp paper )
  3. Form No. 36 - Letter of Lien & Set-off from Borrower ( Rs 100 stamp paper)
  4. Form No. 45 - Letter of Guarantee (on Rs.100 Stamp paper)
  5. Form No. 55 - Letter of Lien & set-off from Guarantor/co-obligant (Rs 100/- stamp paper)


For Branch :

  1. Proper execution of the above documents by applicants & guarantors in presence of branch official in the same handwriting & ink.
  2. In case of any alterations /overwriting, the same should be authenticated by the Executants with their full signatures.
  3. If the proposal is sanctioned, then the original sanctioned letter to be handed over to the applicant with acknowledgement on the duplicate copy signed by the applicant & guarantors as a token of acceptance of terms & conditions or if the proposal is declined then to handover the documents to applicant with reasons for decline against acknowledgment.
Sanctioning Power Branch Manager
Additional Conditions
  1. The Details of loans sanctioned during the month should be reported to the CEO / Manager Credit H.O by 5th of the following month for ratification.
  2. The Performance of the Branch Manager shall be assessed on the number of cases and the asset quality of the disbursed cases under the Scheme.
Target:   Average minimum 2 per month is expected to be disbursed under the scheme with monthly ceiling of 10 cases per branch.

  1. The effective follow-up and monitoring is also a criteria reckoned for assessment of the performance of the Branch Manager.

Concession Rate 0.25% p.a. of Interest to Women borrower for Housing Loan, Education Loan, Gold Loan, Business Loan.



National Co-operative Bank