Purpose of Loan

The object of the policy is to provide fund to the Employees’ Credit Co-operative Societies and its members for purchase of consumer durable goods, Motor Vehicle, Medical, Marriage, House or Flat Purchase/ Construction/ Repairing and Education of Dependent.

Definitions

In this Policy, unless the context otherwise requires- 

i) “Bank” means Malda District Central Cooperative Bank Ltd.

ii) “SECS” means Salary Earner’s Co-operative Societies.

iii) “Confirmed Permanent Employee” means all members of SECS those are affiliated by our bank and where the member should be employed in permanent nature and whose provident fund deduction has started.

iv) “State” means West Bengal.

v) “Staff” means Employee of Malda District Central Co-operative Bank.

Eligible Person

Salary Earner’s Co-operative Societies with following criteria:

i)  All the member of SECS should be employed in the permanent nature of employment under any Govt. undertaken/ sponsored establishment serving in the office situated in Malda district. There should be one SECS under one establishment. 

ii) The concern office head of the establishment issuing certificate u/s 59 of West Bengal Co-operative Societies Act, 2006 that have the power to attach the salary of the concerned employee(s).

iii) SECS should be registered under West Bengal Co-operative Societies Act 2006 or any other law for the time being in force.

iv) There should be a valid Board of Directors / Administrator of the SECS seeking loan from Bank.

v) SECS should be affiliated with the Malda District Central Co-operative Bank Ltd.

vi) SECS should be a member of the District Co-operative Union.

vii) SECS should strictly follow the provision of its Bye-Law, West Bengal Co-operative Societies Act, 2006 & West Bengal Co-operative Societies Rules, 2011 or any other laws for the time being in force in the State.

 Terms And Conditions

Eligibility Criteria for SECS

i) SECS should not be defaulter of any instalment of loan taken from Bank in earlier occasion(s).

ii) SECS should not be divert the collection amount of loan instalment in any other purpose and there should not be any imbalance in loan receivables from Bank and loan payables to the Bank .

iii) SECS should not violate any terms of sanction of previous loan(s).

iv) SECS should complied any instruction or direction issued by the Bank.

v) SECS must separately invest for Reserve Fund, Bad Debt Fund & other Fund accumulation in time deposit with the Bank.

vi) SECS should not fail to produce for books of accounts for annual audit within six months from closing date of the accounting year. If the audit is not taken for any reason the SECS should submit the unaudited statement of accounts to the Bank.

vii) SECS must have held its Annual General Meeting as per law at the material point of time when loan is applied and fixed up maximum borrowing power for the year in which the loan is applied for the Bank, in such meeting.

Eligibility Criteria for Individual Member of SECS

i) The concerned employee should be a permanent employee of the office /establishment with which the SECS is connected.

ii) He /She must be a member of the SECS.

iii) He /She should not be a defaulter of any loan.

iv) He /She should provide securities as prescribed by the SECS.

v) The member should not borrow such type of long / medium term loan from any Bank /Financial Institution other than our Bank.

vi) No loan shall be sanction to a member, whose remaining period of service is less than 12 months.

vii) No disciplinary proceeding is contemplated or pending against him / her by the establishment, he / she employed with. 

viii) He / She has to contribute to the “Thrift Fund” and “Guarantee Fund” as may be set up by the SECS, as such rate as SECS would determine.

Category wise Quantum of Loan, Loan Repayment period and Repayment Type

*The repayment period to be fixed according to the retirement age (Considering as 60 Years)

i) Loan to be repaid by equated monthly instalment.

ii) Salary drawn from our Bank- Periodic schedule payment for fund transfer through standing instruction (S.I.)(Not applicable for staff).

iii) Salary NOT drawn from our Bank - Periodic schedule payment for fund transfer through ACH debit facility with ACH debit mandate Agreement on `10 Non-Judicial Stamp Paper.

Deduction criteria for determination of Loan quantum to member of SECS

i) 20 (Twenty) times of gross salary in case of loan repayment period above 84 months, subject to maximum permissible loan amount.

ii) 15 (Fifteen) times of gross salary in case of loan repayment period up to 84 months, subject to maximum permissible loan amount. However loan instalment should not be more than 70% of the gross salary.

Share

i) Share contribution in Bank: SECS should contribute in share as per West Bengal Co-operative Societies Act, 2006 & West Bengal Co-operative Societies Rules, 2011 or any other laws for the time being in force in the State for borrowing subject to maximum `7000/- per member.

ii) Share contribution in SECS: SECS may fix share per member as per West Bengal Co-operative Societies Act, 2006 & West Bengal Co-operative Societies Rules, 2011 or any other laws for the time being in force in the State for borrowing but that may be greater than the share contribution of SECS in Bank.

Securities

i) Salary of the Employee, Leave Salary, Gratuity and all other receivables.

ii) Two salary holder guarantors.

iii) SECS may also create charge against property / vehicle / equipment created by loan.

Insurance

i) Loan should be fully covered by our Group Insurance Policy.

ii) Group Insurance Policy is optional for Staff

Charges

i) In case of default Bank may charge 2% penal interest

Documentation