Eligibility :

• A. Government servants, working in Government of Puducherry in Puducherry Region.
• B. Employees of such Co-operative Societies functioning in Puducherry Region.
• C. Employees of Local Bodies and Public Section undertakings functioning in the Puducherry Region and approved by Govt. of Puducherry.
• D. Employees of such educational institutions functioning in Puducherry Region.
• E. Regular employees and Casual Labours(CLR) working in the GovernmentDepartments and Government Undertaking are classified into the following categories.

1. First Category

Regular Employees, who are working for a period of less than a year

2. Second Category

Casual Labourers(Temporary Status) under the scheme of Govt. of India, 1993 (Grant of Temporary Status and Regulation), who are working for a period of 10 years and above and contributing subscription to the Provident Fund from their monthly salaries/wages.

3. Third Category

Casual Labourers, who are working for a period of 5 years and above
Contributing subscription to the Provident Fund from their monthly Salaries/ Wages.

4. Fourth Category

Casual Labourers.

Purpose :-

• To Education, House repair and Consumption/Ceremonial

Quantum of Loan :-

• The maximum amount of loan shall not exceed 20 times of the Gross Pay of the borrower or Rs. 5,00,000/-(Rupees Five lakhs only) whichever is less under eligibility employees A,B,C & D
• The maximum amount of loan shall be as follows for category “E”

First Category – Rs. 50,000/-
Second Category – Rs. 25,000/-
Third Category – Rs. 20,000/-
Fourth Category – Rs. 10,000/-

Rate of Interest:-

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Repayment:-

• The period of repayment of the loan shall be 36 equal monthly instalments upto Rs. 2,00,000/-
• The period of repayment of the loan shall be 48 equal monthly instalments for Rs. 3,00,000/-
• The period of repayment of the loan shall be 60 equal monthly instalments upto Rs. 5,00,000/-

Security:-

• Loan shall be granted on the surety of another member of the Bank and also undertaking given by the Pay Disbursing Officer and one may be a Government servant with a minimum regular continuous service of not less than 1 year in Government service provided that if the applicant is an employee of Co-op., Society or local body or public sector undertaking or educational institution, his/her surety shall be either a Government servant or a co-employee working in the respective organization, having a minimum regular continuous service of not less than one year.
• No member shall stand surety to more than on Borrower.
• The surety shall not be related to the borrower.

Processing Charges:-

• A flat rate of 0.5% of the loan amount. This is subject to change from time to time.

Document Required:-

• The application for surety loan should be signed by the Principal borrower as well as the surety and should be accompanied by:-

1. Salary Certificate in the form prescribed by the Bank

2. An Undertaking from the Pay Disbursing Officer, to recover the demand amount and remit it in to the bank with in a period of 5 days.

3. Demand Promissory Note

4. NOC from Bank/Societies mentioned by the Bank

General :-

• No member shall be eligible for surety loan, if he is already default to the Bank as borrower or as surety, by way of any loan or cash credit.
• The instalment shall be paid by the borrower before the due date without default. The Bank has the right to foreclose the loan account and initiate legal action against the borrower and surety if the default continuous for more than three months.
• No loan shall be claimed as a matter of right. The Board / Administrator has the right to refuse sanction of loan if it is not satisfied about the ability of the borrower to use the funds for genuine purposes and about the sufficiency of the Income generated by the loan or from other sources of the borrower to repay the loan within the stipulated period. When the income is found to be inadequate for the purpose of determining the repaying capacity of the borrower, the Administrator has the right to restrict the loans sanction to the extend of his/her repaying capacity.
• Download the application form. Save it on your computer, print it out and send it to the nearest/convenient branch for Processing
• While all efforts have been made to update the information, constituents are requested to contact the branches for latest details.