5% of the loan amount (rounded off to a next higher digit to be divisible by 10) shall be collected as share capital which will be refunded at the time of retirement or resignation/VRS from Union Bank of India and after six months in the case of closure of membership, while continuing as staff member of Union Bank of India.
All confirmed staff members of Union Bank of India and also share holders of the Bank are eligible for a Long Term Loan of Rs.2,00,000/- maximum. Part time sweepers are eligible proportionately to their scales of pay:
| ||Construction of House/purchase of flat /Repairs/Renovation/Additions to the existing house and/or any other domestic needs like Medical/ Ceremonial/ Consumption. |
| ||i) Maximum period for repayment of loan sanctioned for 'Housing' purpose shall be 120 equal monthly installments or left over service of member whichever is less along with the interest thereon, immediately after disbursal of loan. |
ii) For the purposes other than "Housing" the maximum repayment of loan shall be 60 monthly equal installments or left over service of member whichever is less.
| ||Note: ( i ) Whenever, it is decided by the Bank, to defer recovery of loan installment for any month, the repayment period automatically gets extended by such period.|
( ii ) (a) In the event of non-receipt of salary for any month/s by a Member due to some reason or the other, the repayment period gets extended to a further period till the entire loan amount is recovered in full. (b) In the event of non receipt of full salary for any month/s by a Member due to some reason or the other, the Bank has the discretion to reduce EMI to fit into the eligible salary during such month/s and in such cases, the repayment period gets extended to further period till the entire loan amount is recovered in full. The above norms are applicable to LTL/MTL/CGL/TDL.
Renewal of Loan:
| ||Members' are eligible to renew their loan subject to the condition that, such member had repaid 1/3rd of the number of installments (in normal course) opted for repayment. The Board may specifically waive this stipulation, whenever the limit is revised upwards. |
Monthly installment received in respect of closed loans or after the renewal of such loan/loans shall be credited to new loan account/thrift deposit account, but in no case such installment shall be refunded.
Rate of Interest:
| ||Interest @ 10.00% p.a on monthly diminishing balances shall be calculated and debited to respective loan accounts as at the end of every month.|
Other terms and conditions:
|1.||A member has to pay an entrance fee of Re. 1/- per each share taken by him/her subject to a maximum of Rs 100/-|
|2.||A sum of Re.1/- per Rs.1000/- of sanctioned amount, subject to a minimum of Rs. 50/- along with applicable service tax shall be collected as Processing charges.|
|3.||All Members shall contribute Rs.75.00 per month towards MMBF scheme, on becoming a member of the Bank, to avail the benefit under the scheme. In fact, all members have to contribute above mentioned amount, irrespective of their availing or otherwise of Long Term Loan. The amount of contribution is Rs.30/- p.m., in the case of Part time sweepers.|
|4.||Members have to apply for loan by submitting prescribed loan application form, duly filling in all required columns along with original/ attested copy of the latest pay slip and Bank ID Card. Loan shall be sanctioned subject to the availability of sufficient net salary to recover the installment of proposed loan to be sanctioned. |
|5.||Monthly installment received in respect of closed loans or after the renewal of such loan/ loans shall be credited to new loan account/thrift deposit account, but in no case such installment shall be refunded. |
|6.||Renewals of loans are subject to availability of funds. The application will be sanctioned by keeping in seriatim strictly. |