Syndicate Bank Personal Loan

The Syndicate Bank, established in 1925, offers different types of Personal Loans to customers of all sectors. There are about five different types of Personal Loans to customers which are discussed below:

Synd Saral:

This loan can be offered as a demand loan, mortgage of liquid security based loan, loan to fund purchase of consumer durables given to salaried individuals, non-salaried individuals, women, NRIs and agriculturalists. This loan is given so that individuals can meet any personal expenses without any financial limitation. The loan is offered for a maximum period of 5 years or 60 months. The quantum of loan and the interest rates are based on the target group of individuals applying for the loans and the bank has divided the target group into three different categories. The respective categories along with the quantum and interest are as follows:

• Salaried class– this class includes permanent employees of the State Government, Central Government, PSUs, teachers, professors, reputed private companies and pensioners. The maximum amount of loan allowed would be limited to 12 times the gross monthly salary.  The rate of interest linked to MCLR (8.55%) + 4.85% p.a. onwards monthly compounding.
• Non-salaried Class – this sector includes doctors, professionals, lawyers, engineers, CAs, etc. The maximum loan quantum granted is Rs.5 lakhs. The loan granted would be 50% of the gross yearly income if the individual submits the latest ITAO or 100% of the average income if the ITAO of the last 3 years is submitted or 60% of the value of the property if any property is offered as mortgage against loan.  The rate of interest linked to MCLR (8.55%) + 3.85% p.a. monthly compounding.
• All types of borrowers – borrowers who mortgage their property or NSC, KVP, LIC, IVP and RBI Bonds as security fall under this category. For mortgaging NSC/KVP/IVP, the amount of loan given would be 80% of the purchase price if the certificates have completed 24 months or 60% of the purchase price if the completed tenure is higher than 12 months but lower than 24 months. For RBI bonds and insurance policies, the loan granted would be 80% of the purchase price and Surrender Value respectively. A suitable third party guarantee would be required for obtaining the loan. The rate of interest linked to MCLR (8.55%)+ 1.85% p.a. monthly compounding.

Synd Saral for Purchase of Consumer Durables – This loan is granted specifically for buying consumer durables like refrigerator, computers, etc. the loans’ special features include:

• The loan can be used only for the purchase of consumer durables
• The repayment tenure of the loan would be limited to 60 months
• Both salaried and non-salaried individuals can avail of this loan
• The salary of the applicant should be credited in the bank’s account. Otherwise, the employer must undertake to deduct the instalment of loan from the employee’s salary and remit the same to the bank. Furthermore, the quotation of the durable intended to be purchased is to be submitted with the bank. The customer would also have to submit a declaration of having purchased the durables for which loan was initially taken.
• The allowable loan for salaried employees would be lower of 80% of the value of the durable or 10 months’ gross salary up to a maximum of Rs.2 lakhs. For pensioners aged 60 to 70 years, the maximum allowable limit is Rs.1 lakhs and for pensioners aged above 70 years, lower of 5 months’ gross pension or Rs.50, 000 would be the maximum granted limit of loan. For non-salaried individuals, 80% of the invoice value of the article or 50% of the gross annual income as per the ITAO or return filed, whichever is lower would be the maximum allowable limit of loan
•  Interest rate on this loan is linked starts from MCLR (8.55%)+ 3.85% per annum compounded monthly
• A suitable third party guarantee would be required to obtain the loan. Furthermore, the articles purchased with the loan would be act as the security for the loan

Synd Saral Personal Loans to Women – a women specific loan scheme having the following special features:

• It is a demand loan granted to women to meet their personal requirements of a genuine nature
• All working or non-working women who have an identifiable source of income or savings can apply for the loan
• The minimum loan amount would be Rs.10, 000 while the maximum amount of loan would be Rs.1.5 lakhs.
• If general public want to avail of a loan valuing higher than Rs.1.5 lakhs, they have to meet certain criteria which include:

• If their salary is credited to the bank’s branch, they can avail a maximum of 12 months’ gross salary as loan
• If their salary is not credited at the bank’s branch, the quantum of loan granted would be a maximum of 10 months’ gross salary.
• For professionals, businesswomen or non-working women who have proof of income the maximum quantum would be 50% of the gross annual income
• If the applicant maintains an RD account with the bank she can avail a maximum of 10 months’ RD contribution
• If the woman has a Savings Account with the bank, she can avail a maximum of the average balance of the last 6 months maintained in the SB Account

• An earning family member or a suitable third party would have to provide surety for the loan

Synd Saral Personal Loan to Agriculturists – this loan has the following features:

• Loan is extended to individuals engaged in agriculture so that they can meet their personal expenses
• The loan can be issued as a demand loan or any other form of secured loan
• Agriculturists can only avail of the loan scheme. A clean loan would be granted to existing customers of the bank who have relations with the bank and have already mortgaged their property. For new individuals, the loan would be offered as a secured loan
• If the loan is taken as a demand loan, the quantum of loan extended would be 50% of the average gross annual income or Rs.1 lakh whichever is lower. If the loan is any other type of Secured Loan the quantum would be 80% of the consumer durable or vehicle to be purchased, 50% of the annual income or Rs.50, 000 whichever is lower
• The loan should be repaid within 3 years either monthly, quarterly, half-yearly or annually
• A third party guarantee would be required
• If there is an existing mortgage or a charge on the land, the personal land availed would also be covered by the same
• Service charges would apply to the loan

Synd Saral Personal Loans to NRIs- this loans is a specific loan which has the following features:

• The loan is granted to Non-Residential Indians who have NRE/FCNR or NRO Accounts maintained with the bank for at least the past 1 year and they have been sending regular inward remittances in the accounts maintained
• The loan is offered as a demand loan to meet any personal expenses faced by NRIs
• It is a clean loan and salaried class individuals can avail a loan of 12 months’ gross salary while non-salaried individuals can avail a loan of 50% of gross annual income as per the ITAO proof or return filed. In both cases, the maximum cap on the loan amount would be Rs.3 lakhs
• The loan should be repaid within a fixed tenure of 35 months
• Interest on the loan is compounded monthly and the rate of interest is MCLR + 4.75% per annum
• A third party guarantee is required under the loan and the spouse can also join as a surety if the spouse has an independent source of income
• Income proofs like IT Assessment Order, salary certificate, etc. will have to be submitted to the bank
• The loan documents would have to be executed by the NRIs themselves and not the holder of Power of Attorney documents.