IPPB Tie-up with PNB (Punjab National Bank) to offer Retail Loans (viz. Home Loan, Car Loan & any other loan other than personal loan) for the employees
Corporate Office, Speed Post Centre, Bhai Veer Singh Marg, New Delhi- 110001
Ref No. IPPB/HR/2021-22/16 Dated on October 8, 2021
C I R C U L A R / 1 6
Tie-up with Punjab National Bank to offer Retail Loans (viz. Home Loan, Car Loan & any other loan other than personal loan) for the employees of IPPB
Majority Banks follow the practice of providing retail loans to their staff members with employee friendly terms and conditions. This incentive, to the employees, is viewed as a prudent practice across the industry since decades and is pivotal in building strong employee-employer relationship. This facility helps the organization create a long term bond with the employees.
2. IPPB, being a Payments Bank, cannot extend various retail loans to its officers. However, an effort was made by the Bank to explore possibilities to ease the process of availing loans for its staff members. To start with, the Bank has tied up with Punjab National Bank to provide various loan facilities to IPPB employees on all India basis.
3. Punjab National Bank shall grant the loan to IPPB officers under the various heads as per their requirement and the same are as follows:
(a) Housing Loan
• For construction of house/flat
• For purchase of built house/flat.
• For purchase of under construction house/flat
• For carrying out Additions to the house/flat.
• For carrying out repairs/ renovation / alterations/ cost of furnishing to the house/flat.
• For meeting cost escalation in the cases of under-construction flats to existing Housing Loan
borrowers.
« For purchase of land/plot for house building within stipulated period.
• Takeover of housing loan accounts from other financial institutions/ banks
(b) Car Loan
To purchase:
• New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles (SUV)
• Old car/van/jeep/MUV/SUV, which are not older than three years.
• Reimbursement of cost of New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles (SUV) purchased by Individual/ Corporate out of own funds. (Not more than 3 months old)
(c) Any other loan facility other than personal loans
4. The general terms and conditions, purpose of loan, maximum amount, Margin money, minimum salary, eligibility & recovery of instalments etc. with reference to the loan facilities applicable in respective cases are annexed herewith as Annexure -I.
5. All the employees of IPPB will be covered under PNB Pride which is a concessional rate of interest scheme offered by Punjab National Bank linked to Repo Linked Lending Rate (RLLR). The interest rates are subject to change and the employees are requested to please be guided by https://www.pnbindia.in/interst-rate-on-advances-linked-to-mclr.html for updated interest rates.
6. Key features of this tie-up are as under:
a. Punjab National Bank shall not charge processing charges on Housing & Car Loan only, whereas in other schemes it will be charged as per prescribed guidelines of Bank. Other charges viz. Valuation Report, Legal opinion report CIC reports, stamp duty, CERSAI & other out of pocket expenses shall be recovered from the respective employee/officer of IPPB.
b. Concessional rate of interest shall be charged under PNB Pride ROI scheme which is irrespective of the risk profile of the borrower on Housing & Car Loan
C. Revised margin in housing loan from 25% to 20% for loan amount above Rs. 75 Lac till 31.03.2022.
d. Punjab National Bank shall not charge penal interest for prepayment/ foreclosure of loan in case the employees pay back the loan from his/ her own sources.
e. The loan facilities shall be sanctioned by the appropriate authorities of Punjab National Bank with all the agreed concessions and relaxations.
f. The maximum limits for the loan facilities are subject to the income/ repaying capacity of borrowers.
g. The security for the loan facilities shall be as applicable on the respective schemes.
h. The loan shall be sanctioned in such a manner that at no stage the net take home salary after meeting loan instalment is less than a certain percentage of net monthly salary as specified in the scheme after meeting all liabilities/ deductions viz. GPF, EMI, Income Tax, Insurance etc.
The Punjab National Bank shall charge the interest on monthly rates on the daily reducing balance basis.
Repayment shall commence one month after disbursal of the loan or as applicable in the scheme. It shall be the responsibility of the employee to arrange for repayment as per the terms of loan agreement with Punjab National Bank since no deductions will be made from the salary paid by IPPB.
7. The employees desirous of availing this facility are advised to refer Annexure-I having detailed SOP for initiating the process and shall compulsorily seek No Objection Certificate from the HR Department, IPPB which is one of the mandatory documents.
8. PNB Festive Bonanza Offer- Ongoing till 31.12.2021: During the period, full waiver of upfront/ processing fees and documentation charges on Home Loan (all variant), Car Loan, Pension loan, gold loan and myProperty loan.
As on date, revised Home Loan rate of interest in particular segment are as under: - Sanction Limit/ Borrower Type/ CIC Score
Fresh Housing Loan of Rs. 50 Lacs and above with CIC score of borrower 750 and above.
In case of joint borrower(s), the CIC score of at least one borrower must be 750 and above and other borrower shall meet the CIC criteria of >=650 or 0 or-1
i. Fresh Top-up loan (TL & OD) to existing Home
In case of salaried borrower
Applicable ROI @ 6.60% Loan Borrowers with outstanding of Rs. 25 Lakhs
and above and having CIC score of 750 and above
ii. Fresh Top-up loan (TL & OD) to new Home Loan Borrowers with sanction limit of Rs. 25 Lacs and above and having CIC score of 750 and above
(In case of joint borrower(s), the CIC score of each borrower must be 750 & above) Term Loan Overdraft @ 7.15% @ 8.15%
9. Employees availing this facility shall be governed by the terms as applicable at IPPB and Punjab National Bank.
10. The detailed guidelines, annexed as Annexure-I, have also been uploaded at the Learning Management Portal and the path for the same is LMS ->Library -> Human Resource -> Policies.
11. All employees are hereby advised to adhere to the stipulated guidelines and avail this facility as per their requirements.
