Surety loan is a personal loan meant to meet the personal needs of common men, or salaried employees working in Government, aided, Co-operative, self-finance institutions up on the security of salary deduction certificates.

• Purpose
• 1. Purchase of consumer durables, computers, professional equipments etc.
  2. Marriage expenses of self, son, daughter or a dependent near relative.
  3. Medical Expenses incurred/to be incurred for self, spouse, children, dependent near relative.
  4. For education of self/spouse/ children/ near dependent relatives.
  5. Any other personal expenses of bonafide nature.
• Eligibility
• A class members employed in Government department, local bodies, co-operative Institutions, Banks, Government Company and Corporations, well-known Public and Private Companies, and well-known Private Institutions in the area.
• Security
• 1. Surety loans are unsecured loans issued against personal surety agreements and salary certificates and recovery agreement constituted by sureties and drawing officers.
  2. The Salary certificate for the purpose shall be of Government department, local bodies, co-operative Institutions, Banks, Government Company and Corporations,well-known Public and Private Companies, and well-known Private Institutions in the area.
  3. Conditions :
  4. * There should be at least 7 years of service remaining for the borrower /surety for a five-year term loan.
  5. * Proportionate reduction in the term of the loan shall be made if the borrower /surety is having the remaining service of below 7 years.
  6. * The salary deduction agreement signed by drawing officer should be submitted in the prescribed form.
  7. * If the salary deduction certificate of the drawing officer itself is submitted as a security for loan, the certificate shall be countersigned by the treasury officer or his immediate superior officer.
  8. * The loan will be sanctioned only after getting the confirmation from the authorities.
  9. * If the loan amount is up to Rs. 50,000/ apart from the applicant, there must be two sureties with sufficient net monthly salary and total deductions from their salary should not exceed 60% of the gross monthly salary .
  10. * If the applicant is an employee and his salary certificate is submitting as a security, only one additional surety with his salary certificate is sufficient.
  11. * If the loan amount is up to Rs. 25,000/ apart from the applicant, one surety with sufficient net monthly salary and total deductions from their salary should not exceed 60% of the gross monthly salary .
  12. Procedure
  13. The application for a Consumption Loan has to be submitted along with the duly filled up authority letters, Salary deduction agreements, Salary certificates and all the papers related to KYC norms.
  14. Branch manager, after making a detailed scrutiny, should report over the application and has to submit the application to the Head Office along with detailed appraisal report.
  15. After a further verification of requisites, the loan applications will be sanctioned depending upon the merits of the case.
  16. Charges and other costs
  17. The charges levied are forms, insurance, notice and miscellaneous charges. Please visit the page of service charges in this site.
  18. Period
  19. Upto 36 months
  20. Eligible amount
  21. The sanctioning amount shall not exceed 10 times of net monthly emoluments of salaried employees.
  22. Maximum Rs. 5,0000/-
  23. share linking is 5%.
  24. Repayment
  25. Monthly instalment.
  26. Rate of interest
  27. To see the interest rate please visit the page of Interest rate in this site.