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Personal Loan

Personal Loan offered by Saraswat Bank comes in three different variants. One is the normal personal loan while the other is offered under a group scheme. The third is a privilege loan offered to selected individuals who meet the respective criteria. Let us study all the loans in details.

Multipurpose loan

As the name suggests it is a Personal Loan given to individuals for multiple uses.
 

  • Salient Features
  • The loan can be used to meet any kind of personal expenses
  • A limit of Rs.2 lakhs is issued as a loan
  • 100% cost of the article can be taken as loan. For salaried employees, the loan amount can be up to 15 times of their net salary while for businessmen, it can be up to 2 times of average net cash accruals. The total cost of the article or the income based valuation, whichever amounts lower would be offered as loan
  • The loan should be repaid back within a maximum period of 60 months or 5 years
  • 1% of the amount of loan sanctioned by the bank is levied as a processing fee
  • A nominal membership is required for taking the loan
  • If any consumer durable or a two-wheeler or a computer is bought using the loan, the same should be hypothecated to the bank as security. Moreover, for loan amounts up to Rs.50, 000 one additional guarantor would be required while for amounts above the said value, a minimum of 2 guarantors would be required.
  • Eligibility
  • Salaried employees, businessmen, self-employed individuals or professionals can apply for the loan
  • If salaried, the applicant should be employed in a reputed organization and should be working in that organization continuously for a minimum period of 1 year
  • For businessmen, professionals and self-employed individuals, the minimum net cash accruals in the last three years should be at least Rs.1.5 lakhs every year.
  • Rate of Interest

The bank charges a fixed rate of interest which is 15% per annum on the loan granted. Teachers and professors who are not private tutors or run a coaching can avail of a concession of 0.25% in the rate of interest on the loan.

Multipurpose Loan – Group Loan Scheme

A personal loan granted to a group
 

  • Features:
  • The loan can be utilized for personal expenses of any kind
  • One individual can avail of a maximum of Rs.5 lakhs as loan
  • 100% cost of the article or up to 20 times the net salary whichever is lower subject to the maximum limit constitutes the basis of the loan
  • A maximum period of 60 months is extended for repayment which may be increased to 84 months depending on the merit of the proposal
  • If the loan amount crosses Rs.1 lakhs, a processing fee of 1% of the loan amount would be payable
  • The shareholding of the loan would be 2.5% of the loan amount for loans which are higher than Rs.2.5 lakhs up to a maximum shareholding of Rs.25, 000
  • Three types of security requirements are sought under the loan. The first is the repayment under Section 60 of the MSCS Act 2002 or the applicant having a salary account with the bank. The second is the hypothecation of the consumer durables or the articles purchased using the loan. The last requirement is two guarantors for the loan amount which should be from the same organization.
  • Eligibility
  • A minimum of 10 employees are required to avail of the loan in the group scheme
  • Such employees should be permanent employees of the organization who are working with the same organization for a continuous period of 2 years
  • The minimum net take home salary of the employees applying for the loan should be above Rs.10, 000
  • Rate of interest

A fixed rate of interest of 13.50% per annum is charged under the group scheme of personal loan

Privilege Finance

A personal loan granted to certain privileged individuals.
 

  • Features
  • The loan is usable for expenses of a personal nature
  • A maximum amount of Rs.5 lakhs is available as loan
  • The basis of granting the loan amount is either 20 times the net monthly salary or 3 times the average net cash accruals. Whatever be then basis, the amount should not be higher than the maximum prescribed limit
  • 60 months are the maximum period granted for repayment of the loan
  • A flat rate of 0.50% of the amount of loan granted is charged as a processing fee
  • If loans availed are lower than Rs.2 lakhs, a nominal membership is enough as shareholding. However, for loans above this amount, a shareholding of 2.50% of the loan amount subject to a maximum of Rs.25, 000 would be required
  • The security would be hypothecation of household articles and one guarantor at least who would have a net monthly salary of Rs.35, 000 or net profit of Rs.1.5 lakhs as per his Income Tax Returns
  • Eligibility
  • The applicant should be a permanent employee of the organization and he should be in an executive position for a continuous period of at least 1 year
  • The minimum net take home salary of the applicant should be at least Rs.35, 000 monthly.
  • Rate of interest

The bank charges a fixed rate of interest at 14.50% per annum on the daily reducing balance of the loan for a total of 60 months.

Saraswat Bank Advance against RBI Bonds

Saraswat Bank has issued a unique and innovative kind of loan that is offered to the keeper of RBI bonds that are transferable in nature against the RBI bonds held by them. There is no specific mentioned limit on the loan amount. This loan offered holds very unique features that make them different from other retail loans. These features are mentioned below:
 

  • This loan is offered to the bond holders in Demat form for 90% of face value of the bond. In this form, the interest is acquired on a regular basis. Also, 95% of the total accumulated bond value in Demat form which is called the Cumulative Scheme because the rate of interest is acquired when the loan matures.
  • This loan is repaid in 5 years when it is the case of a term loan or on the date when the loan matures whichever of the both takes place first.
  • The interest rate on this loan is calculated on a Floating rate basis and it calculated in the ratio of PLR-2.00:12.25% in a yearly manner.
  • This type of loan also proves to be pocket-friendly as it does not require any sort of charge in order to process the loan.
  • The shares that are held in this loan are based on a Nominal Membership form.
  • For security or collateral to be given to the bank, the bond-holder is required to secure only RBI bonds that are transferable in nature or where a claim can be made on the Bonds.
  • This loan’s documentation procedure is also comparatively very simple. The bond holder is required to submit only the suggested loan application form with the bank.

Loan against Tangible Security

Loan against Tangible Security scheme offered by Saraswat bank is a type of loan that caters to all the personal expenses of the customers. In order to opt for this loan, the customer should hold a Life Insurance Policy that is in existence for a minimum period of 3 years. He should also hold two different certificates in the form of national Savings Certificates (NSC) and Kisan Vikas Patra (KVP) that are 1 year old as in the case of term loans. This loan also holds different features. They are as follows:
 

  • There is no fixed limit to the amount of loan offered to the customers. The loan would depend on the value of the security pledged and the bank’s loan quantum eligibility.
  • In case of term loans, the period of loan repayment is 5 years or the date at which the loan matures whichever takes place before.
  • The rate of interest in this loan is computed on a Floating Rate basis. This rate is generally calculated in ratio form and that is PLR-2.00:12.25% and is calculated on yearly basis.
  • This loan also proves beneficial because there are no hidden charges involved for the method of processing of fees. Thus, the loan has no processing fee payable.
  • The shares are held in the form of nominal membership basis.
  • For NSC, the basis of advance for the left over period of loan maturity less than 3 years is 90% of the face value of the loan. If the left over maturity period is more than 3 years, the basis of advance becomes 85% of the face value of the loan. Again, for Life Insurance Policy, the basis of advance results to a total of 10% of the surrender value of the loan.
  • The security required by the bank in case of Life Insurance Policy, the rules terms and conditions of the Policy should mention that the Policy can be accredited and the Loan can be enjoyed against the LIP.
  • The required document for taking up this loan to be submitted to the bank should just be the referred form of loan application.

Pravasi-Travel Loan

Pravasi loan offered by the Saraswat bank is a type of travel loan that caters to all the travel related financial needs of the consumers that arises during domestic or overseas travel. This loan is offered at a maximum of Rs.2 lacs and it should not exceed that amount. This loan has many innovative features. The different features are as follows:
 

  • This loan is offered to salaried persons and also businessmen. The basis of advance for salaried persons is 12-15 times of the total Net of the home salary. For businessmen, the basis of advance is twice the amount of the Net cash accumulated.
  • This loan should be repaid in a maximum number of 24 months and this repayment period should not exceed this period.
  • The rate of interest of this loan is computed in a fixed rate basis and is fixed at the rate of 16% per annum. In case of teachers and professors and not private tuitions and coaching, a discount of 0.25% per annum is offered to the customers.
  • For security or collateral, one or more than one guarantors are allowed that directly depends on the benefits of the proposal offered. The amount can be directly acquired by the bank through the salary account of the individual.
  • This loan involves nominal processing fees of 1% of the total of the loan amount.
  • The shares are held on the basis of nominal membership form.
  • This loan also provides life insurance coverage to the customers but it is optional. This insurance is offered at a discounted rate to the customers.
  • A host of different types of documents are required to be submitted to the bank. The list of different types of documents are as follows:
  • Fully and properly filled form of application of loan.
  • Photograph as well as proof of identity of the customers.
  • Proof of the place where the Borrower and Guarantor are residing.
  • Salaried individuals are required to submit their salary slips for the previous three months.
  • For self-employed, businessmen and professionals, a complete and legitimate profit and loss account and balance sheet for the last two years is required to be submitted to the bank by the Borrower.

Documentation

  • Application form which should be duly filled in
  • A Photo Identity proof to be submitted of the applicant and the guarantor
  • The Address Proof of the applicant and the guarantor would be required
  • In case of salaried individuals, an income proof of their income is required. Salary slips of the preceding 3 months with the Income Tax Returns or the Form 16 of the preceding 3 years can be submitted
  • If the individual is a businessman or any other self-employed individual the requirement in case of income proof would be the Profit and Loss Account, Balance Sheet and the Income Tax returns of the preceding 3 years. Along with these documents, the bank statement of the last 3 months is also required.
  • A certification from the Human Resource Department of the organization which confirms the list of employees who are applying for the loan scheme and their respective details

Applying for the loan

Applicants who wish to apply for any variant of the loan should visit the Paisabazaar.com website and apply for any available variant.