Nature of the Scheme

• To provide consumer credit to individuals having an assured source of regular income  to acquire consumer durables such as  purchase of brand new consumer durables like Refrigerators, TVs, wooden and steel furniture, washing machines, Mixer and grinders, Cooking ranges and other house hold equipments

• Salaried persons
• Pensioners drawing pension in the branch
• Other persons with minimum annual income of Rs.30,000

• 25% of the value of article proposed to be purchased

Maximum amount of loan that can be sanctioned :

• 10 month gross salary in case of salaried class or cost of the article whichever is less.
•  4 months pension in case of pensioners
• 40%  of the annual income in case of other persons

Repayable in monthly installments.  Maximum period not to exceed 60 months

Husband/ father or any third party (with sufficient worth and of regular income) acceptable to the bank. Where the applicant is unwilling or unable to furnish suitable co-obligation, liquid collateral security is insisted upon.

Personal security of the borrower and Hypothecation of the article purchased with Bank finance

• Assignment of Life insurance policy with equivalent surrender value
• Pledge of shares, NSCs, Units etc. of adequate value

Proof of Income –
Salary Slip/ IT Returns/ Assessment Order, Property Statement
For Non salaried person – Latest Income Tax Assessment Order, Property statement
Any other Valid document
Latest original quotation for article proposed to be purchased.

2% on the amount prepaid

Insurance of hypothecated assets is waived in respect of loans with limits not exceeding Rs.10,000/-
In other case the hypothecated asset should be insured for its full value immediately after disbursement of the loan and also renewed annually till the loan is repaid in full.