The Syndicate Bank, established in 1925, offers different types of Personal Loans to customers of all sectors. There are about five different types of Personal Loans to customers which are discussed below:
This loan can be offered as a demand loan, mortgage of liquid security based loan, loan to fund purchase of consumer durables given to salaried individuals, non-salaried individuals, women, NRIs and agriculturalists. This loan is given so that individuals can meet any personal expenses without any financial limitation. The loan is offered for a maximum period of 5 years or 60 months. The quantum of loan and the interest rates are based on the target group of individuals applying for the loans and the bank has divided the target group into three different categories. The respective categories along with the quantum and interest are as follows:
- Salaried class– this class includes permanent employees of the State Government, Central Government, PSUs, teachers, professors, reputed private companies and pensioners. The maximum amount of loan allowed would be limited to 12 times the gross monthly salary. The rate of interest linked to MCLR + 4.75% p.a. monthly compounding.
- Non-salaried Class – this sector includes doctors, professionals, lawyers, engineers, CAs, etc. The maximum loan quantum granted is Rs.5 lakhs. The loan granted would be 50% of the gross yearly income if the individual submits the latest ITAO or 100% of the average income if the ITAO of the last 3 years is submitted or 60% of the value of the property if any property is offered as mortgage against loan. The rate of interest linked to MCLR + 4.75% p.a. monthly compounding.
- All types of borrowers – borrowers who mortgage their property or NSC, KVP, LIC, IVP and RBI Bonds as security fall under this category. For mortgaging NSC/KVP/IVP, the amount of loan given would be 80% of the purchase price if the certificates have completed 24 months or 60% of the purchase price if the completed tenure is higher than 12 months but lower than 24 months. For RBI bonds and insurance policies, the loan granted would be 80% of the purchase price and Surrender Value respectively. A suitable third party guarantee would be required for obtaining the loan. The rate of interest linked to MCLR + 1.75% p.a. monthly compounding.
Synd Saral for Purchase of Consumer Durables – This loan is granted specifically for buying consumer durables like refrigerator, computers, etc. the loans’ special features include:
- The loan can be used only for the purchase of consumer durables
- The repayment tenure of the loan would be limited to 60 months
- Both salaried and non-salaried individuals can avail of this loan
- The salary of the applicant should be credited in the bank’s account. Otherwise, the employer must undertake to deduct the instalment of loan from the employee’s salary and remit the same to the bank. Furthermore, the quotation of the durable intended to be purchased is to be submitted with the bank. The customer would also have to submit a declaration of having purchased the durables for which loan was initially taken.
- The allowable loan for salaried employees would be lower of 80% of the value of the durable or 10 months’ gross salary up to a maximum of Rs.2 lakhs. For pensioners aged 60 to 70 years, the maximum allowable limit is Rs.1 lakhs and for pensioners aged above 70 years, lower of 5 months’ gross pension or Rs.50, 000 would be the maximum granted limit of loan. For non-salaried individuals, 80% of the invoice value of the article or 50% of the gross annual income as per the ITAO or return filed, whichever is lower would be the maximum allowable limit of loan
- Interest rate on this loan is linked to the MCLR + 4.75% per annum compounded monthly
- A suitable third party guarantee would be required to obtain the loan. Furthermore, the articles purchased with the loan would be act as the security for the loan
Synd Saral Personal Loans to Women – a women specific loan scheme having the following special features:
- It is a demand loan granted to women to meet their personal requirements of a genuine nature
- All working or non-working women who have an identifiable source of income or savings can apply for the loan
- The minimum loan amount would be Rs.10, 000 while the maximum amount of loan would be Rs.1.5 lakhs.
- If general public want to avail of a loan valuing higher than Rs.1.5 lakhs, they have to meet certain criteria which include:
- If their salary is credited to the bank’s branch, they can avail a maximum of 12 months’ gross salary as loan
- If their salary is not credited at the bank’s branch, the quantum of loan granted would be a maximum of 10 months’ gross salary.
- For professionals, businesswomen or non-working women who have proof of income the maximum quantum would be 50% of the gross annual income
- If the applicant maintains an RD account with the bank she can avail a maximum of 10 months’ RD contribution
- If the woman has a Savings Account with the bank, she can avail a maximum of the average balance of the last 6 months maintained in the SB Account
- An earning family member or a suitable third party would have to provide surety for the loan
- The rate of interest would be MCLR + 4.50% which is monthly compounded
- Applicable service charges would have to be paid on the loan
Synd Saral Personal Loan to Agriculturists – this loan has the following features:
- Loan is extended to individuals engaged in agriculture so that they can meet their personal expenses
- The loan can be issued as a demand loan or any other form of secured loan
- Agriculturists can only avail of the loan scheme. A clean loan would be granted to existing customers of the bank who have relations with the bank and have already mortgaged their property. For new individuals, the loan would be offered as a secured loan
- If the loan is taken as a demand loan, the quantum of loan extended would be 50% of the average gross annual income or Rs.1 lakh whichever is lower. If the loan is any other type of Secured Loan the quantum would be 80% of the consumer durable or vehicle to be purchased, 50% of the annual income or Rs.50, 000 whichever is lower
- The loan should be repaid within 3 years either monthly, quarterly, half-yearly or annually
- A third party guarantee would be required
- If there is an existing mortgage or a charge on the land, the personal land availed would also be covered by the same
- Service charges would apply to the loan
Synd Saral Personal Loans to NRIs- this loans is a specific loan which has the following features:
- The loan is granted to Non-Residential Indians who have NRE/FCNR or NRO Accounts maintained with the bank for at least the past 1 year and they have been sending regular inward remittances in the accounts maintained
- The loan is offered as a demand loan to meet any personal expenses faced by NRIs
- It is a clean loan and salaried class individuals can avail a loan of 12 months’ gross salary while non-salaried individuals can avail a loan of 50% of gross annual income as per the ITAO proof or return filed. In both cases, the maximum cap on the loan amount would be Rs.3 lakhs
- The loan should be repaid within a fixed tenure of 35 months
- Interest on the loan is compounded monthly and the rate of interest is MCLR + 4.75% per annum
- A third party guarantee is required under the loan and the spouse can also join as a surety if the spouse has an independent source of income
- Income proofs like IT Assessment Order, salary certificate, etc. will have to be submitted to the bank
- The loan documents would have to be executed by the NRIs themselves and not the holder of Power of Attorney documents.
Synd Senior loan is a very unique and innovative loan offered by Syndicate bank to all the consumers. This loan is basically in the form of demand loan or overdraft facility that caters to all the authentic personal as well as business credit related needs of the consumers. The rate of interest on this loan is connected directly to the MCLR and it is MCLR +3.75% p.a. which is mingles on a monthly basis.
Eligibility for Synd Senior loan
Not all individuals are eligible to obtain this loan. There are certain eligibility factors on which this loan is based. They are as follows:
- Public sector companies.
- Pensioners who are getting pensions on a monthly basis either from the Central Government or the State Government.
- Defense institutions.
- Other Government or Quasi Government Establishments whose funds are transferred through the concerned bank accounts.
The total measure of loan be it demand loan or overdraft facility, is based basically on the age of the borrower. They are as follows:
Demand Loans- In case of demand loans, up to 65 years, the optimum allowed loan is Rs. 3 lakhs and the loan is routed to the bank in the form of 18 times gross monthly pensions. For 65-70 years, the maximum loan amount is Rs. 1.50 lakhs and it is also routed through the bank in 18 time’s gross monthly pensions. For age above 70 years, the amount of maximum loan offered is Rs. 0.50 lakhs and it is routed through the bank in 5 times the gross pension. In case of loan repayment, the EMI should not exceed the tenure of 72 months.
- Overdraft Facility- Through the overdraft facility, the consumer can enjoy amount with-drawl facility in the Pensioner’s Savings Bank account through the debit balance that should not exceed the maximum of one month’s last drawn pension. For repayment method, the main principal amount is supposed to be repaid within the initial two months from availing the loan and then onwards, monthly interest is charged.
This loan does not involve any sort of security and the fee to process this loan is charged as applicable by the bank. The amount of cut-back amount equals to 50% of the income from genuine sources annual income. In this loan no surety is applicable for loans up to 6 months or monthly pension of Rs. 50,000 whichever less is. Apart from this, any security from any family member with proper income is allowed. In overdraft facility, the surety of the partner is allowed and if not spouse, then, any other surety of third party will do.
Synd Delight is a type of a unique loan that helps the Housing loan customers to meet the authentic credit needs. Any housing loan customer is eligible to opt for this loan but only he should have a satisfying loan repayment record of 3 years or more. The total measure of this loan is 10% of the limit of the Housing Loan or the original loan amount distributed whichever is less. This quantum of loan is subjected to a minimum loan amount of Rs. 50,000 and a maximum loan amount of Rs. 10 lakhs. The current rate or interest of Synd Delight is 12.30% and is calculated on a yearly basis. Generally this rate is calculated as MCLR + 2.75% p.a. The repayment method does not involve any moratorium period or is not connected with Housing Loan repayment maturity period. It should not exceed 84v EMIs and the repayment tenure that is left shall be a minimum of only 36 months. As far as security or collateral on this loan is concerned, loans above the value of Rs. 3 lakhs, an elongation on charge on the current mortgage of the Housing Loan is supposed to be secured. This loan does not require any sort of guarantee and the fee to process this loan is Rs. 500 per Rs. 1 lack. On the other hand, the charge for documentation for loans up to Rs. 2 lakhs is not applicable but for loans above that amount, a charge of Rs. 2000 per lakh is charged but it should not exceed Rs. 2000.
Synd Connect loan id offered to only the Financing Employees of Central and State Governments, public limited companies and Fortune 500 companies as well. This loan satisfies the authentic personal credit needs of the above mentioned persons who are under the age group of 50 years. This loan favors credit facility in the form of Term loans or Overdraft Facility. The total amount of loan offered is the gross salary of the total number of service years that is completed and which is subjected to a maximum of 10 times with a limit of Rs. 10 lakhs whichever is less. Presently, the rate of interest is 13.05% and it is calculated on a yearly basis. This interest rate is basically calculated by adding 3.50% to the MCLR. The other various features of this loan mentioned below will make this loan more clearly:
- The bank accepts a guarantee of a third party on this loan. Guarantee of a spouse is also considered but they should have a running independent income.
- This loan is repaid is 72 EMIs but in case of Overdraft Facility, the interest is charged regularly.
- This loan involves charges for processing the loan and that is 0.12% of the total amount of loan with maximum amount of Rs. 250. This fees is payable upfront when the applicant is applying for the loan from the bank.
- Again, the customers are also charged with documentation fees which is Rs. 100 on Rs. 1 lakh but it should not exceed Rs. 500.
- Other guidelines include that the salary shall always be credited at the bank itself and the undertaking letter from the Employer stating that it is compulsory fro crediting the salary to the account of the barrower remains unchanged. Again, undertaking letter from the employer for not submitting the advantages of the borrower unless the Due certificate from the bank is not submitted to the concerned person.
Syndicate Bank has personal loan interest rates which are applicable is 1 year MCLR = 9.55% p.a. w.e.f. 11-07-2016.
Checking the status of one’s loan application is also easy and can be done online through the Paisabazaar.com portal just like in case of online application. The portal provides the status checking facility also and can be easily used. By entering the reference number and mobile number mentioned in the application form, the applicant can easily view the status of his loan online.
Applying for a Personal Loan from the bank
Application for any of the type of personal loans from Syndicate Bank can be done easily through a simple process of called online application. Using the internet and by simple clicks of the mouse, this online application can be done. The website allowing for such online application is Paisabazaar.com wherein customers can log in, check their eligibility, calculate the respective EMIs for any and every type of loan variant and if satisfied, can also apply for the loan simply. The whole process takes few minutes and some required details of the applicant for checking eligibility and computation of EMIs.