Advances against Life Insurance Policies

i.

Eligibility

–

Any Individual, Group of Individuals, Proprietorship / Partnership Firms Companies etc., who is a bona-fide member of the Bank, including Nominal Member.

ii.

Type of  Facility

–

Loan and/or Overdraft limit.

iii.

Purpose

–

For any legitimate requirement of funds.

v.

Margin

–

15% of the surrender value of the Life policies.

vi.

Rate of Interest

–

As per Bank’s rules.

vii.

Other Charges

–

As per Bank’s rules.

iv.

Security

–

Assignment of Life Policies on the life of the borrower or any third party, who shall stand as surety for the credit facility.

viii.

Other Conditions

a)

Assignment of Life Policy in bank’s favour to be  registered with Life Insurance Corporation of   India, before release of credit facility.

b)

Certificate of Surrender Value of life policy be obtained and kept on record at the time of sanction and every year thereafter.

c)

CEO shall have the discretion to relax the      condition of margin up to the maximum of 5% in deserving cases on merit of each case.