Consumer Credit – Personal Loan

Unsecured personal loan (UPL) is a terminating facility offered by bank’s retail banking Division/Consumer financing, CRM to individual salaried people living in the cities/towns where the bank has its operations. It is a clean or unsecured loan in the sense that only security in this type of loan product is : a) Letter of introduction from employer; or b) Transfer of monthly salary and assignment of terminal Benefits; or c) Personal guarantee taken from specific section of people.

 

 

Customer Segment

- Employees of the Government/Semi-Government/ Autonomous Bodies/Banks/ Non Banking Financial Institutions (NBFI) and employees of the reputed organizations who are maintaining their salary account with our Bank.

 

Purpose

Miscellaneous personal financial requirements. The customer has to declare the purpose of the loan but submission of supporting document is not mandatory. Purposes may be as follows:

 

- House Renovation

- Marriages in the family

- Hospitalization or other emergency medical needs

- Trips abroad

- Purchase of miscellaneous household appliances

- Purchase of Personal Computers

- Purchase of refrigerators

- Purchase of audio-video equipment

- Purchase of furniture

-Others

 

Eligibility: 

 

Age: Minimum 25 years (at the time of application), Maximum 65 years (at the end of loan tenor)

Minimum Service: For salaried individual, must be confirmed employees of a relevant firm

Minimum Yearly income (Net BDT): At least three times of the total yearly instalments amount of applied loan.

 

Loan Size: Minimum: Tk.25,000/- (Taka twenty five thousand), Maximum: Tk.10.00 lac (Taka ten lac)

 

Security Requirement                                                                                                      

• Letter of introduction from the employer.
• Letter of undertaking for salary and Terminal Benefits assignment or Guarantee from the employer/one rank higher than the applicant or equivalent.
• Complete loan document
• Personal Guarantee of spouse/parents.
• Bank statement
• Personal Net –Worth statement of the Guarantor / Borrower
• Post dated cheques for all installments
• One undated blank cheque (for future default covering)

 

Loan Tenor: Minimum: 12 months, Maximum: 60 months

 

Repayment method: Equal Monthly Instalments

 

Disbursement Mode:

By making credit to customer’s savings/Current account

 

First repayment date: Generally, one month after the date of customer’s availing the loan. May be earlier if customer wants.

 

Debt Burden Ratio (DBR%): A maximum of 33% based on net monthly income

 

Verification of Personal Details

Branch officials will verify the addresses-both present and permanent, all telephone numbers of borrower, guarantor, referee, employment/occupational details, invoice etc. This will be a physical in all cases.

 

After the verification is done, the designated officer will submit a report on their findings in the prescribed form. The report will be kept attached to the borrower’s loan file.

 

Substantiation of income:

Following as appropriate:

-Salary Certificate/Salary Slip

-Bank statements

-Income Tax returns of last period

-Any other document that may stand as a proof of income

 

 

Present Address: Borrower must reside for at least 6 months in the same address

 

Restrictions on purpose of the facility:

Though specific disclosure of need is not a mandatory requirement on customers part, No facilities can be granted for purposes that are legally in contradiction with the law of the land. It is therefore advisable that the dealing officers shall know the purpose of the facility and records the same. Mentionable that no other loan to be adjusted by availing this facility.

 

Required Documents

 

1. Recent Passport size color photograph of the applicant (s) and guarantor (s)
2. Photocopy of NID/Passport/Driving License of the applicant(s) and guarantor(s).
3. Copy of Latest utility bill (Gas/Water/Electricity).
4. Office ID of applicant (s) and guarantor (s), if any.
5. Latest Tax Certificate, if any.
6. Personal Net Worth Statement of the applicant (s) and Guarantor (s) to assess the repayment capacity.
7. Bank Statement of last 12 months.
8. Copy of Employer Certificate.

 

 

Availability Period : Maximum 03 (three) months from the date of sanction advice. 

 

Prepayment: 2% breakage cost to be realized from the borrower in case of early adjustment of the loan.

 

Note- 1 :          One will not be eligible to avail credit facility under “Consumer Credit – Household

                        Durables” and  “Consumer Credit -Personal Loan” products of the Bank simultaneously.