| HOUSING LOAN TO STATE GOVT. EMPLYEES UNDER MEMORANDUM OF UNDERSTANDING (MOU) |
Asomi Grihashree Loan Scheme, the housing loan scheme of the Bank for the customers was circulated vide H.O. circular no. AGVB/CR/HLS/17/OM-009/06 dated 27.03.06. The detail terms and conditions for availing of a housing loan from our bank has been laid down in the aforesaid circular.
In order to enhance the retail credit under housing sector, our bank has recently entered into a Memorandum of Understanding (MoU) with the Govt. of Assam for extending housing loan to State Govt. employees under the terms and conditions set out in the MoU. All concerned are advised to go through the contents of the MoU (copy enclosed) very carefully and act accordingly. However, Branches/Regional offices are advised to take note of the following important points of the scheme.
1. |
Under the special arrangement incorporated in
the MoU, Housing Loans shall be sanctioned and
disbursed to the employees of the Government of
Assam, posted at various centres through any of
the branches of AGVB in Assam on fulfillment of
the Bank's terms and conditions as applicable
from time to time under Asomi Grihasree Loan Scheme. |
2. |
The specially devised loan application form along with Annexure I,II & III for housing
loan shall be provided by any of the branches
of AGVB in the State of Assam to employees of
the Government of Assam posted at various centers
who have completed minimum three years of regular
service having GPF Account Numbers. |
3. |
The loan applications shall be submitted by
the employees duly filled in and with required
papers / particulars under the scheme to the branches
where their salary is credited by the Government
of Assam, for sanction and disbursement of the
loan. |
4. |
The loan application shall also be accompanied
by the following documents: |
(i) |
Irrevocable Letter of Authority (Annexure
I of the MoU) addressed to the concerned Branch
Manager by the concerned employee authorizing
him for deducting E.M.I. from his/her account
maintained at that Branch in which his/her salary
and/or terminal payments is/are credited, till
the loan amount along with accrued interest is
liquidated. |
DDO shall not allow transfer of
these salary accounts of the employees to or shall
not credit salary to any other account with any
other Bank/Branch of AGVB without written consent
of the Branch where the employee has availed Asomi
Grihasree Loan. DDO shall not pay the salary to
the employee in cash. |
(ii) |
A Letter in standard format issued by the
concerned Drawing and Disbursing Officer(DDO)
to AGVB (Annexure - II of the MoU), his agreeing
to credit the salary of the employee to the Bank
account of the employee along with all other terminal
payments till the loan amount with accrued interest
is fully liquidated except in the event of death
of the employee. |
(iii) |
A Letter issued by the Drawing & Disbursing
Officer when the loan applicant himself is the
Drawing & Disbursing Officer (DDO) (Annexure
- III of the MoU) along with the Irrevocable
Letter of Authority (Annexure-I of the MoU),
agreeing to credit his/her salary along with all
other terminal payments, to his/her Bank account,
till the loan amount with accrued interest is
fully liquidated. |
5. |
After receiving the loan applications along
with the necessary documents and annexures, the
concerned branch of AGVB shall scrutinize, process
and sanction the loan as per discretionary power
on fulfillment of the bank's prescribed norms
and shall invite the applicant found eligible
under the scheme for execution of standard loan
documents as applicable for the State of Assam. |
6. |
The following terms and conditions under the
MoU shall be applicable to the employees of the
Government of Assam. |
(i) |
AGVB will extend a concessional rate than the
actual prevailing applicable rate of the AGVB
that is fixed on the basis of AGVBCR from time
to time on loans to be granted under the scheme. |
(ii) |
After taking this concession into consideration,
at present the rate of interest for state Govt.
employees will be as follows :-
Fixed Rate -
Repayment upto 5 years -10 % p.a. and Above 5
years and up to to 20 Years-10.50 % p.a. with
reset clause at every two years ;
Floating Rate - Repayment upto 5 years
-(BPLR) - 3.25% i.e. 10%, Above
5 to 10 years - (BPLR) - 2.75% i.e. 10.50% and
Above 10 years-(BPLR-2.50%
i.e. 10.75%. |
(iii) |
75% of the processing fee will be waived by
the AGVB with effect from the date of execution
of MoU, Full waiver of processing fee will be
considered by AGVB depending on the volume of
total loans to Govt. employees later in the year.
Thus the processing fees to be charged at present
shall be 0.25% of the loan amount. |
(iv) |
Interest shall be charged to the loan account
at monthly interval . |
(v) |
The house property has to be compulsorily insured
against risk of fire, lightning,, riots, earthquake,
floods etc. for the entire term of the loan failing
which the Bank may pay the premium by debiting
to the borrower's account and recover the same
from the borrower. |
(vi) |
Life Insurance cover for the loan amount and
term is compulsory and the one time upfront premium
for Life cover will be financed by the AGVB in
the event of the borrower failing to deposit necessary
premiums. For life insurance cover separate guidelines
will follow. |
7. |
In the event of death, resignation, dismissal
/ removal of Govt. employee, the concerned D.D.O.
shall communicate the fact of such death, resignation,
dismissal / removal of the Government employee
to the branch concerned. |
8. |
After execution of loan documents, the Bank
shall disburse the loan amount in phases and forward
a copy of the sanction letter to the concerned
D.D.O. for information and record. |
9. |
In the event of death of the borrower during
the currency of loan, insurance claim will be
lodged and the loan account will be credited with
the claim amount received from the Insurance Company.
On full payment of the loan amount, the documents
shall be delivered as per bank's extant instructions
and a "No-Due" certificate will be issued
to the successor/legal heirs of the borrower with
a copy to the concerned DDO. |
The Office Memorandum for Housing Loan is expected to be
issued by Govt. of Assam shortly. Meanwhile, Branches are
advised to mobilize maximum numbers of salary account and
housing loan account under the captioned scheme. In case
of additional requirement of credit budget under this sector,
branches shall write to their Regional Office and R.O. will
in turn write to Head Office for enhancement of the budget.
Branches/Regional offices are once again advised to go through
the contents of the MoU very carefully and follow it scrupulously.
Branches/ Regional offices may feel free to write to the
Credit and Recovery Department at Head Office for further
clarification if required.
CHAIRMAN
| MEMORANDUM of UNDERSTANDING |
This Memorandum of Undertstanding(MoU) is made on this the
24th day of September, 2007 at Dispur, Guwahati, Assam
BETWEEN
Government of Assam, Finance Department, Dispur, Guwahati,
Assam having its office at Assam State Secretariat,Dispur,
Guwahati hereinafter referred to as the Finance Department,
Govt. of Assam.
AND
Assam Gramin Viksah Bank, a body corporate under Regional
Rural Bank Act, 1976 having its Head Office at Guwahati and
having Branch Offices in the State of Assam, hereinafter referred
to as the AGVB.
WHEREAS there are a number of regular employees working
for the Government of Assam and many of the said employees
require financial assistance to meet their essential need
of housing.
AND WHEREAS it is one of the business of AGVB amongst others,
to extend housing loan facilities to various customers, public
and corporate as per prescribed terms and conditions of AGVG
and hence approached Government of Assam for extending Asomi
Grihsree loans to the employees of Government of Assam posted
at various corners of the State under a special arrangement
as detailed hereafter.
AND WHEREAS the Finance Department, Government of Assam
and AGVB have mutually agreed to extend housing loan facility
to the regular employees of Government of Assam under Asomi
Grihasree loan scheme (hereinafter referred to as scheme)
under a special arrangements as per the following agreed terms
and conditions :
| 8. |
That under the special arrangement
detailed hereinafter under the MoU, Housing Loans
shall be sanctioned and disbursed to the employees
of the Government of Assam, posted at various centres
through any of the branches of AGVB in Assam on
fulfillment of the said Bank's terms and conditions
as applicable from time to time under Asomi Grihasree
Loan Scheme, which shall not be revised or modified
retrospectively without express consent of the Finance
Department of the Government of Assam. |
| 9. |
That the loan applicants for housing
loan shall be provided by any of the branches of
AGVB in the State of Assam to employees of the Government
of Assam posted at various centres who have completed
minimum three years of regular service and are having
GPF Account Numbers. |
| 10. |
That the loan applications shall
be submitted by the employees duly filled in and
with required papers / particulars under the scheme
to the branches in which their salary is credited
by the Government of Assam, for sanction and disbursement
of the loan. |
| 11. |
That the loan application shall also be accompanied
by the following documents:
(vii) Irrevocable Letter of Authority (Annexure
I to this MoU) addressed to the concerned
Branch Manager by the concerned employee authorizing
him for deducting E.M.I. from his/her account
maintained at that Branch in which his/her salary
and/or terminal payments is/are credited, till
the loan amount along with accrued interest is
liquidated.
DDO shall not allow transfer of these salary accounts
of the employees to or shall not credit salary
to any other account with any other Bank/Branch
of AGVB without written consent of the Branch
where the employee has availed Asomi Grihasree
Loan. DDO shall not pay the salary to the employee
in cash.
(viii) An Assurance Letter issued by the concerned
Drawing and Disbursing Officer (DDO) to AGVB (Annexure
- II) to the MoU), his agreeing to credit
the salary of the employee to the Bank account
of the employee along with all other terminal
payments till the loan amount with accrued interest
is fully liquidated except in the event of death
of the employee.
(ix) An Assurance Letter issued by the Drawing
& Disbursing Officer when the loan applicant
himself is the Drawing & Disbursing Officer
(DDO) (Annexure - III to the MoU) along with the
Irrevocable Letter of Authority (Annexure-I to
the MoU), agreeing to credit his/her salary along
with all other terminal payments, to his/her Bank
account, till the loan amount with accrued interest
is fully liquidated. |
| 12. |
That after receiving the loan applications
along with the necessary documents and annexure
the concerned branch of AGVB shall scrutinize, process
and sanction the loans on fulfillment of the bank's
prescribed norms and shall invite the applicant
found eligible under the scheme for execution of
loan documents as per the Stamp Act as applicable
to the State of Assam. |
| 13. |
That the following terms and conditions under
the MoU shall be applicable to the employees of
the Government of Assam.
(i) AGVB will extend a concessional rate than
the actual prevailing applicable rate of the AGVB
that is fixed on the basis of AGVBCR from time
to time on loans to be granted under the scheme.
(ii) Taking this concession into consideration
AGVB, at present will charge as follows
Fixed Rate -
Repayment upto 5 years -10 % p.a. and Above 5
years to 20 Years-10.50 %
p.a. with reset clause at every two years ;
Floating Rate - Repayment upto 5 years
-(BPLR) - 3.25% i.e. 10%, Above
5 to 10 years - (BPLR) - 2.75% i.e. 10.50% and
Above 10 years-(BPLR-2.50%
i.e. 10.75%.
(iii) 75% of the processing fee will be waived
by the AGVB with effect from the date of execution
of MoU, Full waiver of processing fee will be
considered by AGVB depending on the volume of
total loans to Govt. employees later in the year.
Thus the processing fees to be charged at present
shall be 0.25% of the loan amount.
(x) Interest shall be charged to the loan account
at monthly interval and accordingly an Equated
Monthly Instalment (EMI) shall be worked out for
the loans.
(xi) The house property has to be compulsorily
insured against risk of fire, lightening, riots,
earthquake, floods etc. for the entire term of
the loan failing of which the Bank may pay the
premium by debiting to the borrower's account
and recover the same from the borrower.
(xii) Life Insurance cover for the loan amount
and term is compulsory and the one time upfront
premium for Life cover will be financed by the
AGVB in the event of the borrower failing to deposit
an necessary premiums.
(xiii) Special terms and conditions as applicable
to Government of Assam employees under the Asomi
Grihasree Loan Scheme are detailed in Annexure
- IV to the MoU. |
| 14. |
In the event of death, resignation,
dismissal / removal of Govt. employee, the concerned
D.D.O. shall communicate the fact of such death,
resignation, dismissal / removal of the Government
employee to the branch concerned. |
| 15. |
After execution of loan documents,
the Bank shall disburse the loan amount and forward
a copy of the sanction letter to the concerned D.D.O.
for information and record. |
| 16. |
Immediately on complete repayment of all dues
to the Bank under Asomi Grihasree Loan availed
by the employee, the Branch shall release the
title deeds against acknowledgement and issue
a "No Due" Certificate to the borrower
with a copy to D.D.O.
|
| 17. |
In the event of death of the borrower
during the currency of loan, insurance claim will
be lodged and the loan account will be credited
with the claim amount. On full payment of the loan
amount, the documents shall be delivered as per
bank's extant instructions and a "No-Due"
certificate will be issued to the successor of the
borrower with a copy to the concerned DDO. |
| 18. |
This MOU may be reviewed every 3(Three)
Years or earlier at the request of the
either party. |
IN WITNESS WHEREOF THE PARTIES HERETO SUBSCRIBED THEIR RESPECTIVE HANDS AND SEAL ON THE MOU THE DAY, MONTH AND YEAR FIRST ABOVE WRITTEN.
FOR AND ON BEHALF OF
GOVT. OF ASSAM
FINANCE DEPARTMENT |
|
FOR AND ON BEHALF OF
ASSAM GRAMIN VIKASH BANK |
(Santanu Mukherjee)
Secretary to the Government of Assam
Finance Department, Government of Assam |
|
(Ram Deo Yadav)
Chairman
Assam Gramin Vikash Bank |
|