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Corp Mitra
1. Eligibility
| v | All confirmed Employees/ Executives/ Officials /Agents of LIC of India, LIC Housing Finance Ltd., LIC Mutual Funds and other Insurance Companies under Public Sector and their subsidiaries whose salary is routed through the Bank. |
| v | Age of the LIC agent should not be more than 65 years. |
| v | LIC Agents must have a minimum period of 5 years service and should receive regular commission. |
| v | Employee/Agent seeking loan should not have any liability under Personal Loan Schemes OR any other facility of clean/unsecured nature except Corp Vidya availed for his/her children. |
2. Purpose
To meet personal/ domestic expenses/ contingencies
3. Quantum of Finance
3.1 In the case of Employees:
| v | Where an irrevocable Letter of Authority in the prescribed format, from the applicant addressed to the employer, and duly acknowledged by the employer is submitted along with the application: |
Demand Loan (DL) : 12 months of gross salary.
Over Draft Loan (OD) : 6 months of gross salary.
| v | Where an irrevocable Letter of Authority is NOT submitted along with the application: |
DL : Maximum of 6 months Net salary
OD : Maximum of 6 months Net salary
| v | In the case of employees aged 55 years & above, only Demand Loan is considered. |
| v | Where, loan is in the form of OD a/c, salary is to be invariably routed through the OD a/c. |
| v | For employees, eligible loan is arrived at based on salary income only (i.e Bonus, Incentive income not considered). |
| v | Where an irrevocable Letter of Authority in the prescribed format, from the borrower addressed to the employer, and duly acknowledged by the employer is submitted along with the application :- |
| v | Demand Loan OR Over Draft : Maximum of 60% of the average annual commission receipts during the immediate preceding 3 years. |
| v | Maximum loan amount Rs. 1,50,000/-including the loan availed if any, under erstwhile Corp Mitra Gold Scheme. |
3.2 In the case of LIC Agents:
| v | Where an irrevocable Letter of Authority in the prescribed format, from the borrower addressed to the employer, and duly acknowledged by the employer is NOT submitted along with the application. |
| v | Demand Loan OR Over Draft : Maximum of 30% of the average annual commission receipts during the immediate preceding 3 years. |
| v | Maximum loan amount is Rs. 50,000/- including the loan availed if any, under erstwhile Corp Mitra Gold Scheme. |
| v | In the case of Agents aged 60 years & above, only Demand Loan is considered. |
| v | Where, loan is given in the form of OD a/c, the commission is to be routed through the OD a/c. |
| v | In the case of Agents, eligible loan is arrived at based on commission receipts |
| v | In the case of LIC Agents, where loan amount sought is more than Rs. 50000/- OR Rs. 150000/- as the case may be: |
| v | Loan for over & above Rs. 50000/- OR Rs.1.50 lakh, ( Depending upon submission of irrevocable letter of authority acknowledged by the employer) is to be fully secured by collaterals after maintaining prescribed margin on such security: |
NSC : 15% margin on face value
LIC Policy : 10% margin on surrender value.
Immovable property : 35% margin on value of the property.
4. Margin - Nil
5. Rate of Interest
14.25% under floating rate ( for both DL/OD) (W.e.f: 02.08.2010) (Fixed rate option not available)
6. Guarantee
| v | In the case of Officers of all Insurance Companies placed in Scale-I and above, co-application of another employee/third party guarantee is not mandatory. However, Sanctioning Authority may stipulate co-applicant/ third party guarantee based on risk perception. |
| v | In the case of class-II, III and IV employees of all Insurance companies, another employee of same Insurance Company /Agent of LIC shall join as co applicant. However, co applicant’s income is not reckoned for arriving at eligible loan amount. In exceptional cases, Sanctioning Authority may stipulate third party guarantee of another employee of same Insurance company/ Agent of LIC. |
| v | In the case of LIC Agents, another LIC Agent/ LIC employee to join as co-applicant. However, co applicant’s income is not reckoned for arriving at eligible loan amount. In exceptional cases, Sanctioning Authority may stipulate third party guarantee of another LIC employee /Agent of LIC. |
| v | Wherever, an LIC Agent is taken as co applicant/ guarantor, he must have reasonable amount of income. |
| v | Where spouse of the applicant is also an employee of Insurance Company OR Agent of LIC, he/she may join as co applicant. |
| v | Mutual co application/guarantee also acceptable. However, one employee/Agent can join as co-applicant/ guarantor for one loan only. |
| v | In all the above cases, salary/commission of applicant, co applicant and guarantor are to be routed through the Bank. |
7. Security /Collateral
| v | Loan for over & above Rs. 50,000/- OR Rs. 1.50 lakh, ( Depending upon submission of irrevocable letter of authority acknowledged by the employer) is to be fully secured by collaterals after maintaining prescribed margin on such security: |
NSC : 15% margin on face value
LIC Policy : 10% margin on surrender value.
Immovable property : 35% margin on value of the property.
8. Repayment
| v | In case of DL,maximum 60 months in EMIs. |
| v | In case of OD, repayable on demand subject to annual review/renewal. |
| v | EMI/ Notional interest as a % to net income is applicable as per guidelines as applicable. |
9. Processing Charges - NIL
10. Prepayment Charges - NIL-
11. Other Conditions
| v | An irrevocable Letter of Authority in the prescribed format, from the borrower addressed to the employer, and duly acknowledged by the employer is to be submitted. |
| v | The letter duly acknowledged by the employer, is to be submitted by the applicant along with the loan application. |
| v | The irrevocable letter of authority is to be acknowledged by Branch Manager of Insurance company / Salary disbursing Authority or any Competent Authority designated by Insurance company who is empowered to sign the same. |
| v | The letter should contain proper seal, name and designation of the Official acknowledging the same. |
12. Revised Application Form:
13. Please click here for Checklist:
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