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General Terms & Conditions

Revised-Loan Policy

Rules for granting various kinds of advancements to individuals, traders, salaried/non-salaried persons, firms, Cooperative Societies, companies etc.

These rules shall be called The Chandigarh State Cooperative Bank Ltd., Chandigarh Rules for granting various kind of advancements to individuals, traders, salaried/non-salaried persons, firms, Cooperative Societies, companies etc.

Objectives

In order to meet requirements of the public of U.T. Chandigarh, the Chandigarh State Cooperative Bank Ltd., Chandigarh is revising the loan policy and launches more Loan Schemes to cater the need of the general public, local residents of UT, Chandigarh.

Definitions

• The ‘Bank’ means The Chandigarh State Cooperative Bank Ltd., Chandigarh.
• The ‘Board of Directors’ and the Loan Sub Committee’ means the Board of Directors and Loan Sub Committee constituted under the bye-laws of the Bank.
• ‘Authorized officer’ means the officer authorized by the BOD/Loan Sub Committee of the Bank to receive and take appropriate action on the applications for loans under the relevant loan scheme.
• ‘Borrower/Loanee’ means an Individual, Sole Proprietor, Firm Coop. Soc. Or a Company doing manufacturing/Trading business/Providing services having an assured Income.
• ‘Cooperative Societies Act’ means the Punjab Cooperative Societies Act! 1961as applicable to U.T. Chandigarh.
• ‘Cooperative Societies Rules’ means ‘The Punjab Cooperative Societies’ Rules! 1963 as applicable to U.T. Chandigarh.
• ‘Bye Laws’ means the bye laws of the bank.
• ‘Salary earners’ means permanent employees of organized sector where provident fund is deducted.
• ‘Non Salary earners’ includes professionals, businessman, self employed, farmers etc
• ‘Nominal Member’ means a person admitted to membership of the bank under Act, Rules and Bye-laws of the bank without any right to vote.
• ‘Family Member’ means spouse, son, Son’s wife, unmarried daughter of the borrower/Loanee.

General Term & Conditions

The following terms and conditions will be applicable to all the loan schemes irrespective of specifically the terms and conditions have been mentioned in particular loan scheme.

1. The borrower and guarantors/sureties should be nominal member/shareholder of the bank.

2. The proof of borrower’s source of income should be attached with loan application.

3. The calculation of interest on loan and advances made to public should be on monthly basis except on those cases in which specifically mentioned otherwise.

4. The calculation of interest on loan and advances made to staff should be on half yearly basis. The principal should be zeroed first and thereafter the interest amount would be zeroed.

5. If the age limit is not clear in any scheme then the minimum and maximum age should be 21 and 58 respectively. If the co-applicant is included in the loan application then one of the applicants may be older beyond the prescribed age limit.

6. In unsecured loan scheme, the borrower should be permanent resident of Chandigarh. If the borrower is tenant and not a govt./semi govt./board/ corporation employee then the branch manager should ensure the borrower’s credibility and authenticity.

7. The resident proof, photographs and identity proof of loanee and guarantors/ surety should be submitted with the loan application.

8. If the loan amount is secured against any immovable property, in that case Valuation of property, non-encumbrance certificate, Clear title of property or marketability of property, Fard etc should be submitted with loan application form.

9. The borrower shall submit the utilization certificate.

10. Verification of Loanee should be ensured by the branch manager.

11. Verification of property which is to be mortgaged must be done by the advocate deputed by the bank and must ensure that the property is free from any type of encumbrance. After lien marking, there should be verification of property by the advocate for ensuring that property has been duly lien marked in favor of the bank

12. The advancement of loan should be through saving account of the loanee.

13. The loanee should submit the ECS Mandate for crediting the monthly loan installment.

14. Any type of loan may be advance against the security of FDRs then the terms and conditions of loan may be relaxed at the discretion and satisfaction of the branch manager.

15. The purpose of loan should be mentioned in loan application.

16. In each and every loan cases wherever applicable, the margin money should be deposited in the saving account of the loanee with the bank and thereafter the advancement be made as per the terms and conditions of the loan.

17. In case of mortgage/pledge loan, it can be taken over from other bank on the satisfaction and strongly recommendation of the B.M.

18. In any loan case where the loan relates to make the payment to third party, in that case the payment should be made to the third party.

19. In case of any dispute amongst the loanee, guarantors and the bank, the jurisdiction of any court should be of U.T. Chandigarh.

20. Rate of interest may vary in all types of loans with the approval of Managing Director of the Bank from time to time.

21. Advance Cheques should be of CTS’2010.