ALL INDIA STATE BANK OFFICERS’ FEDERATION
(Registered under the Trade Unions Act 1926, Registration No: 727/MDS)
State Bank Buildings, St. Mark’s Road, Bangalore – 560 001
CIRCULAR NO.112
TO ALL OUR AFFILIATES/MEMBERS:
INDIVIDUAL HOUSING LOAN SCHEME FOR EMPLOYEES/OFFICERS
REVISION IN SCHEME‐2014 – EFFORTS OF THE FEDERATION BEAR FRUIT
While wishing all our members a very happy Dussera, Durga Pooja, and Bakrid, we are very happy to convey to all our members that due to the untiring efforts of the Federation and the whole hearted co-operation extended by the top management at Corporate Centre, the individual Housing loan limits have been enhanced, substantially, with major improvements in the repayment period, rate of interest, eligibility norms, loans for repairs/renovation, repayment after retirement, eligibility to all comrades who joined the Bank after 01.01.1991 also for the extended repayment of the loan upto 75 years and a possibility of coverage through group insurance, in a landmark achievement. Please refer our letter No.6528/66/2014 dated 25.08.2014 where in we had raised all of the above issues. We had earlier written a series of letters to the Management bearing No. 6528/72/12 dated 23.11.2012; No.6528/17/12 dated 04.06.2013; No.6528/02/14 dated 09.01.2014; No.6528/05/14 dated 12.02.2014; 6528/58/14 dated 13.08.2014; 6528/46/2014 dated 04.07.2014 on the issue of improvements in the Individual Housing loan.
2. We thank the Chairman, the DMD and CDO, the CGM(HR) the DGM (IR) and the entire team of HR for all their efforts in making this possible. Many of our officers/employees had availed commercial loans, paying very high rates of Interest, in order to meet the exorbitant market prices of houses/flats/sites etc. We are happy that this long cherished desire of all our comrades is a reality now. There are some issues and clarifications that are yet to be resolved in respect of scheme, which we shall take up subsequently. In the meanwhile the members may avail the benefits/facilities provided in the scheme and be guided accordingly.
3. We reproduce hereunder text of e-circular No.CDO/P&HRD-IR/49/2014-15 dated 30th September, 2014 contents of which are self-explicit.
With greetings,
GENERAL SECRETARY
TEXT
QUOTE:
Please refer to our e‐circular No.CDO/P&HRD‐IR/64/2007–08 dated 05.02.2008 vide which the Individual Housing Loan Scheme for employees in the Bank was last
revised.
2. The loan limits that were fixed about 6 years ago have lost their relevance due to increase in prices of land and construction materials. Property rates have gone up substantially. Our employees/officers have to resort to borrowing on commercial rates to complete housing projects or to acquire ready build‐up flats/houses.
3. With a view to addressing the hardships faced by our employees, the Executive
Committee of Central Board (ECCB) of the Bank in its meeting held on 19.09.2014
has approved improvement in the Individual Housing Loan Scheme for employees in the Bank, as under:‐
Existing
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Revised
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i.
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Limit:
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Limit:
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Sub Staff : Rs. 8.00 lacs
Clerical : Rs.12.00 lacs
Officers : Rs.20.00 lacs
|
Sub Staff : Rs.30.00 lacs
Clerical : Rs.45.00 lacs
Officers upto SMGS V: Rs.60.00 lacs
Officers TEGS‐VI & above : Rs,80.00 lacs.
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(Maximum eligibility, subject to maximum permissible deductions i.e. 60% of gross salary)
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Maximum eligibility: No change
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ii.
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Rate of Interest:
6% (simple) irrespective of amount.
|
Rate of Interest: (for new a/cs)
Limit upto Rs.40 lacs :‐ 6.75% p.a. (simple)
Limit above Rs.40 lacs :‐ 8.00% p.a. (simple)
(The Board may review the rate of interest
as and when necessary)
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iii
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Ancestral property:
Loan for repair/ renovation
/alteration of the house/ flat
acquired without bank’s finance:
Sub staff : 50 times of BP + spl pay or
Rs.4 lacs, whichever is less.
Clerical : 50 times of BP + spl pay or
Rs.6 lacs, whichever is less.
Officers : 50 times of BP or Rs.10
lacs, whichever is less.
(Maximum eligibility, subject to
maximum permissible deductions i.e.
60% of gross salary)
|
Ancestral property:
Loan for repair/ renovation/alteration
of the house/ flat acquired without
bank’s finance.
Sub staff : Rs.12.00 lacs
Clerical : Rs.18.00 lacs
Officers : Rs.30.00 lacs
Maximum eligibility: No change
|
v.
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Repayment period:
240 months (168 months principal +
72 months for interest)
|
360 months (including max.
moratorium period of 24 months) ;
Tenure for repayment in the ratio of ‐
principal: interest = 2:1
|
vii.
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Repayment after retirement (on superannuation only)
Upto 75 years –those joined the bank on or before 01.01.1991.
Joined after 01.01.1991‐ Entire outstanding is recovered at the time of retirement.
|
Repayment after retirement
Upto 75 years of age, irrespective of date of joining, subject to adequate and verifiable cash flows for repayment of the loan to the satisfaction of sanctioning authority.
To be reviewed at the time of retirement, wherever necessary to ensure adequate repayment capacity as done hitherto.
|
viii.
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Housing loan on commercial terms:
Rate of interest:
Up to Rs.30 lacs – At par with Base rate i.e. presently 10% p.a.
Above Rs.30 lacs – 0.25% below rate applicable to public but not below Base Rate, Presently 10.25% p.a.
|
Housing loan on commercial terms
Rate of interest (irrespective of loan amount):
25 bps less than public housing loan rate but not below Base Rate.
Current effective rate :10% p.a.
|
ix.
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Sanctioning authority:
For IHLs – Officer not below the rank of Regional Manager/AGM of the Branch/AGM (COO).
For HL on commercial terms to staff – designated officer of RACPC, wherever located.
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Sanctioning authority:
For loan under IHLs and HL on commercial/public terms ‐ Officer not below the rank of Regional Manager/AGM (COO)/AGM of the Branch (Same authority will sanction both the loans as a combined
proposal).
|
4. In this connection, we are considering the possibility of covering all the new Staff Housing Loan accounts with a group insurance policy as an added welfare measure to all employees.
5. The benefit of revised housing loan scheme will be applicable to all eligible employees who are on rolls of the bank as on 19.09.2014, i.e. the date of approval
of ECCB.
6. Further, it has been decided that conversion of existing commercial housing
Loan/enhancement of housing loan under IHLs to liquidate existing loan from verifiable sources of serving employees under IHLs will be allowed to the extent of
difference between the current maximum loan entitlement of the employee and amount of existing loan sanctioned initially, including additional loan, if any. Further, an employee, on his promotion from one grade to higher grade/scale may
be permitted to avail of housing loan upto his entitlement of the grade/scale to which he is promoted for repayment of loans taken on commercial/public terms or
outside borrowings from verifiable sources.
The other operational guidelines are as under:
(i) The revised ceiling and interest rates will be effective immediately to all new loans under IHLS sanctioned/disbursed on or after the date of this circular. Repayment for the new loans under IHLS will be fixed in the ratio of P:I=2:1 (224 monthly installments for principal and 112 monthly installments for the interest, by allowing normal maximum moratorium of 24 months). Necessary changes on this account may be made in the loan documentation. However, in case of existing loans, the original repayment schedule (i.e. 168 installments for principal and 72 installments for the interest in the ratio of 7:3) will continue.
(ii) After liquidation of principal within the stipulated period, the interest portion should be recovered in residual period of loan tenor and deductions should be effected accordingly. All branches should invariably ensure that all existing as well as new accounts are reviewed at the time of liquidation of principal amount and recover the installment towards interest correctly, so that entire outstanding is recovered within stipulated time.
(iii) Due to steep rise in the cost of real estate/construction material and owing to inadequacy of the pre‐revised limits of loan under IHLS, a number of employees have raised additional housing loan from the Bank at commercial rates. Such staff members on their making a formal request may be permitted to avail of the housing loan upto their revised entitlement for repaying such outstanding housing loan on commercial rate on the following terms and conditions:
a. Such employees may submit their application on the specified format enclosed to e‐circular No.CDO/P&HRD‐IR/50/2008‐09 dated 28.08.2008.
b. The additional housing loan at commercial rate of interest should have been raised to meet part cost of the housing project as initially advised to the Bank in the housing loan application.
c. This facility is not meant for taking up additional construction etc. by revising the cost of the project.
d. This facility is available only as a one‐time measure and has to be availed of before 30th June 2015. The facility will stand withdrawn on expiry of this date.
e. The amount of additional housing loan for repaying loan at commercial rate will be to the extent of its outstanding amount subject to the ceiling of revised housing loan limit under IHLS after ensuring a margin of 10% for the entire original project cost.
f. Repayment of additional housing loan will be fixed (P:I=7.:3) over the residual tenure so as to ensure that its liquidation coincides with liquidation of the main IHL.
7. The new product codes for new loan accounts are as under:
PRODUCT CODE
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PRODUCT DESCRIPTION
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6259‐2014
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IHL‐SUB STAFF –SEPT 14
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6259‐2015
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IHL‐CLERICAL –SEP 14
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6259‐2016
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IHL‐OFF UPTO SMG‐V‐SEP14
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6259‐2017
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IHL‐OFF‐TEGS‐VI&ABOVE
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8. All other existing terms and conditions for Housing Loan/Additional Housing Loan under the Individual Housing Loan Scheme (IHLS) for employees, including margin, minimum length of service, the stipulation that total deductions should not exceed 60% of the gross monthly salary etc. will remain unchanged.
UNQUOTE:
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ReplyDelete