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