AIMING TO provide easy loans to State Government employees, Central Bank of India signed an MoU with the Madhya Pradesh Government at Mantralaya on Friday.
The MoU signed by Central Bank’s executive director K Subbaraman and secretary (Finance) AP Shrivastava, will facilitate in providing various loan facilities like housing, personal, education, vehicle, consumer, marriage, domestic and for international tours to Government employees at concessional rates of interest.
As per the MoU, the State Government will assure the bank for deposition of salary of the borrower (Government employee) with the bank for deduction of EMIs from the salary of the employee and its deposit with the bank through a streamlined arrangement of check-off facility.
It has also been decided that in case of non-recovery of the loan due to resignation or death of the concerned employee, the amount will be recovered by the State Government from the terminal benefits of such employee.
The agreement has attractive offers for Government employees, as there will be no processing charge on housing loans, along with five per cent lower rate of interest towards margin; students pursuing education at IIT / IIM and girls would have to pay less than the normal and similarly, while buying a two-wheeler, an employee would be charged at 10 per cent RoI, instead of normal 15 per cent.
“It’s a win-win situation both for the bank and the Government. As the bank won’t have to bother for recovery, the Government employees would be getting hassle-free loan at concessional rate,” Central Bank’s zonal manager RP Tripathi told Hindustan Times. He said the Government had invited quotations from banks, and after competitive bidding, Central Bank bagged the offer.
Prior to it, the State Bank of India had a tie-up with the State Government to provide loans to its employees. For the State Government employees stationed at Bhopal, the Bank has designated its Arera Hills branch at Jail Road as the nodal branch for receiving, processing and sanction of loan applications.