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PARTICIPATION DETAILS
How to become a member of the Bank?
Benefits on account of being a subscriber towards M.MB.F.
CREDIT FACILITIES PROVIDED BY THE BANK TO THE MEMBERS
LOAN PRODUCTS TO MEMBERS AT A GLANCE
CREDIT FACILITIES TO RETIRED STAFF MEMBERS OF ANDHRABANK
 
HOW TO BECOME A MEMBER OF THE BANK



1.
Any confirmed employee of Andhra Bank can become a member by taking one share of Rs. 10/- and entrance fee of Rs.1/-
2.
A member after closing his membership may re-enroll again as a member subject to the condition of repayment of 100% of the share capital, thrift deposit amount which he/she withdrew on resigning his/her membership previously (including the amount converted into Fixed Deposit and the amount withdrawn if any). Further he/she has to pay back the total amount of MMBF refunded, besides the amount equivalent to the regular subscription i.e. arrears for the period from the date of last closure of membership till the date of readmission.
 
A.
Every member shall subscribe to the thrift deposit so long as he or she continues to be a member of the bank according to the scale laid down below:
  I. Members whose basic pay is upto Rs.1700/- P.M. - Rs. 50/- p.m.
  II. From Rs. 1701/- to Rs. 3000/- Rs. 100/- p.m.
  III. From Rs. 3001/- P.M. to Rs. 7,500/- P.M. Rs. 150/- p.m.
  IV. From Rs. 7,501/- to Rs. 10,000/- P.M. Rs.200/- p.m.
  V. From Rs. 10001/- to Rs. 15,000/- P.M. Rs.250/- p.m.
  VI. From Rs. 15001/- to Rs. 20,000/- P.M. Rs.300/- p.m.
  VII. Above Rs. 20000/- Rs. Rs.350/- p.m.
 
Thrift Deposit Rate of Interest revised from 9.50 % p.a. to 9.00 % p.a. w.e.f. 01-06-2016.

 
B.
Every member has to subscribe a sum @ Rs. 75/- Per month (Rs. 30/- p.m., for Part Time Sweepers) towards the members Mutual Benefit Fund during the currency of their Membership irrespective of the availing or otherwise of any loan. The initial monthly subscription is sufficient to avail the Long Term loan. For availing Medium Term and Contingent Loans, additional contribution as indicated under respective loans, herein after is to be made.
 
 

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BENEFITS ON ACCOUNT OF BEING A SUBSCRIBER TOWARDS M.M.B.F.

   
I. IN CASE OF DEATH OF A MEMBER
A.
Financial assistance of Rs. 2,500/- to the family members of a deceased member to meet expenses to perform the last rites.
B. The loan outstanding due from the member less the share capital, Thrift Deposit and MMBF held by him/her shall be written off.
C.
In respect of members expired without having any loan outstanding against his/her name for adjustment from the fund account, a sum of Rs. 20,000/- shall be paid to the nominee / legal heirs of such deceased member.
II. IN CASE OF DISMISSAL/CRS OF A MEMBER
Certain concessions/waivers are available to the members who are dismissed/terminated/compulsorily retired from the service of Andhra Bank, and the details of such concessions/ waivers and terms and conditions of eligibility are provided at Long Term Loan product.
 

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LOAN PRODUCTS TO MEMBERS AT A GLANCE

The amounts indicated below are maximum allowed limits. The actual eligible limits are based on years of service, basic pay, cadre of the employee in the Bank etc. The important guidelines covering quantum of loan, repayment period, rate of interest, renewals etc.. available to the confirmed staff members of Andhra Bank are furnished in subsequent paragraphs

NATURE OF FACILITY MAXIMUM ELIGIBLE LOAN (Rs.in lakhs)
Long Term Loan 2.00*
Medium Term Loan 1.00*
Contigent Loan 3.00*
Thrift Loan 85% of Deposit at Credit
Loans against NSCs Rs. 3.00 lakhs

I. LONG TERM LOANS (erstwhile Surety Loan)
1.
Eligibility:

The member should be a confirmed employee of Andhra Bank.

2.
Eligibility Limit:

The following is the eligibility criteria for loan limits.
a.
5% of the loan amount (rounded off to a next higher digit to be divisible by 10) shall be collected as share capital which will be refunded at the time of retirement or resignation/VRS from Andhra Bank and after six months in the case of closure of membership, while continuing as staff member of Andhra Bank.

b.
All confirmed staff members of Andhra Bank and also share holders of the Bank are eligible for a Long Term Loan of Rs.1,50,000/- maximum. Part time sweepers are eligible proportionately as given bellow:

Maximum Limit
Part-time Sweepers on 1/3rd scale Rs. 70,000/-
Part-time Sweepers on ½ scale Rs. 1,00,000/-
Part-time Sweepers on 2/3rd scale Rs. 1,33,000/-

c.
Purpose:
  Construction of House or purchase of flat or Repairs/Renovation/Additions to the existing house
and/or any other domestic needs like Medical/ Ceremonial/ Consumption.
d.
Repayment:
  i) Maximum period for repayment of loan sanctioned for “Housing” purpose shall be 120 equal monthly installments or left over service of member whichever is less along with the interest thereon, immediately after disbursal of loan.
ii) For the purposes other than "Housing" the maximum repayment of loan shall be 60 monthly equal installments or left over service of member whichever is less.
  Note: ( i ) Whenever, it is decided by the Bank, to defer recovery of loan installment for any month, the repayment period automatically gets extended by such period.
( ii ) (a) In the event of non-receipt of salary for any month/s by a Member due to some reason or the other, the repayment period gets extended to a further period till the entire loan amount is recovered in full. (b) In the event of non receipt of full salary for any month/s by a Member due to some reason or the other, the Bank has the discretion to reduce EMI to fit into the eligible salary during such month/s and in such cases, the repayment period gets extended to further period till the entire loan amount is recovered in full. The above norms are applicable to LTL/MTL/CGL/TDL.
e.
Renewal of Loan:
  Members' are eligible to renew their loan subject to the condition that, such member had repaid1/3rd of the number of installments (in normal course) opted for repayment. The Board may specifically waive this stipulation, whenever the limit is revised upwards.

Monthly installment received in respect of closed loans or after the renewal of such loan/loans shall be credited to new loan account/thrift deposit account, but in no case such installment shall be refunded.
f.
Rate of Interest:
  Interest @ 10.00% p.a on monthly diminishing balances shall be calculated and debited to respective loan accounts as at the end of every month.
g.
Other terms and conditions:
 
1. A member has to pay an entrance fee of Re. 1/- per each share taken by him/her subject to a maximum of Rs 100/-
2. A sum of Re.1/- per Rs.1000/- of sanctioned amount, subject to a minimum of Rs. 50/- along with applicable service tax shall be collected as Processing charges.
3. All Members shall contribute Rs.75.00 per month towards MMBF scheme, on becoming a member of the Bank, to avail the benefit under the scheme. In fact, all members have to contribute above mentioned amount, irrespective of their availing or otherwise of Long Term Loan. The amount of contribution is Rs.30/- p.m., in the case of Part time sweepers.
4. Members have to apply for loan by submitting prescribed loan application form, duly filling in all required columns along with original/ attested copy of the latest pay slip. Loan shall be sanctioned subject to the availability of sufficient net salary to recover the installment of proposed loan to be sanctioned.
5. Monthly installment received in respect of closed loans or after the renewal of such loan/ loans shall be credited to new loan account/thrift deposit account, but in no case such installment shall be refunded.
6. Renewals of loans are subject to availability of funds. The application will be sanctioned by keeping in seriatim strictly.
7. In respect of loans(LTL/MTL/CGL) being availed by members who are suspended/dismissed/ terminated/compulsorily retired from the service of Andhra Bank, the following procedure to be followed as approved by the Board, vide note no.795/7/FY 2011-12 dt.26.02.2012.

Status of Borrower Procedure for treatment of Loan liabilities
Suspended Employees of Andhra Bank Interest not to be charged from the date of suspension. In the event of reinstatement of shareholder borrower in Andhra Bank service, the interest is to be charged with retrospective effect from the date of stoppage.
Dismissed/ terminated/ Compulsorily retired from the service of Andhra Bank The Dues are to be recovered to the extent of available terminal benefits as and when they are released by Andhra Bank, from the members who are dismissed/terminated/compulsorily retired from the service of Andhra Bank if they are eligible for pension (in case of pension optees) and (b) all terminal benefits in case of other members (who neither opted nor eligible for pension). The left over liabilities of members after such recovery is to be adjusted from MMBF Payments a/c.
The other members who are dismissed/terminated/compulsorily retired from the service of Andhra Bank and do not fall in above said categories are eligible for following concessions/relief.
1. Interest not to be charged from the date of suspension/dismissal.
2. The outstanding balance in loan account without charging further interest has to be adjusted by share capital, Thrift and MMBF.
3. If there remains further balance after such adjustment, the entire outstanding balance amount is to be adjusted from MMBF payments a/c, after 6 months from the date of dismissal.
4. In the event of reinstatement of shareholder borrower in Andhra Bank service, all concessions stand withdrawn and the member has to repay his dues as per original contract. For the purpose the Loan, Share Capital, Thrift Deposit and MMBF entries passed at the time of write of have to be reversed with following entries.
a) Share Capital, Thrift Deposit and MMBF adjusted to loan account have to be reversed back, to the debit of concerned loan accounts.
b) Interest is to be charged at applicable rates to concerned loans with retrospective effective from the date of stoppage to the date of passing reversal entries.
Loans with Surety continuing 100% relief to sureties and the loans with surety are to be treated on par with loans without surety and the member’s (Borrower) loans will be considered for concession/relief or recovery as the case may be as per eligibility in aforesaid categories.

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II. MEDIUM TERM LOANS
(erstwhile Additional Surety Loan)
I.
Eligibility:
1. All confirmed staff members of Andhra Bank and also share holders of the Bank are eligible for a Medium Term Loan of Rs.1,00,000/- maximum. Part time sweepers are eligible proportionately as given bellow:
Maximum Limit
Part-time Sweepers on 1/3rd scale Rs. 33,300/-
Part-time Sweepers on ½ scale Rs. 50,000/-
Part-time Sweepers on 2/3rd scale Rs. 75,000/-

2. 10% of the loan amount shall be collected as share capital (rounded off to next higher digit to be divisible by 10) which will be refunded at the time of retirement or Resignation/VRS from Andhra Bank and after six months in the case of closure of membership, while continuing as staff member of Andhra Bank.
II.
Rate of Interest:
Interest @ 10.5% p.a., on diminishing balance shall be calculated and debited to the respective loan accounts at the end of every month.

III.
Purpose:
Construction of House or purchase of flat or Repairs/Renovation/Additions to the existing house and/or any other domestic need like Medical/Ceremonial/ Consumption.

IV.
Repayment:
Maximum of 60 monthly installments or the left over service of the borrower whichever is lower, commencing immediately after disbursement.

V.
Renewal:

Members' are eligible to renew their loan subject to the condition that such member had repaid 1/3rd of the number of installments (in normal course) opted for repayment. The Board may specifically waive this stipulation, whenever the limit is revised upwards.

Monthly installment received in respect of closed loans or after the renewal of such loan / loans shall be credited to new loan account/thrift deposit account, but in no case such installment shall be refunded.


VI.
Other Terms and Conditions:
1. A sum of Re.1/- per 1000/- of loan sanctioned with a minimum Rs. 50/- along with applicable service tax shall be collected as Processing charges
2. The loan is covered by Member Mutual Benefit Fund scheme.
3. Members shall contribute towards MMBF scheme, every month as noted below during the currency of the loan for availing the benefit under the scheme.
a Loan amount up to Rs. 50, 000 Rs.25/- p.m.,
b Loan amount above Rs 50, 001/- & Up to Rs. 75, 000/- Rs.40/- p.m.,
c Loan amount above Rs. 75, 000/- Rs.50/- p.m.,
d Part Time Sweepers, irrespective of limit Rs.10/- p.m.,

4. Members have to apply for loan by submitting prescribed loan application form, duly filling in all required columns along with original/ attested copy of the latest pay slip. Loan shall be sanctioned subject to the sufficient net salary to recover the installment of the proposed loan to be sanctioned. Members whose existing loans are not in order are not eligible for the loan/renewal of existing loan.
5. In respect of loans being availed by members who are suspended/dismissed/terminated/compulsorily retired from the service of Andhra Bank, the procedure given at item no.7 of Long Term Loans to be followed.

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III. CONTINGENT LOANS
1.
Eligibility:

1. The member should be a confirmed employee of Andhra Bank.
2. The member should have completed one year of service in Andhra Bank.
3. Ex-servicemen are eligible on completion of 1 year of service.
2.
Eligible Limit :

  Maximum Limit
Substaff Rs. 1,50,000
Clerks Rs. 2,50,000
Officers Rs. 3,00,000
Note: Members working in the cadre of part time sweepers are entitled for loan, Proportionate to their scales of pay.

3.
Rate of Interest:

Interest @ 11.00 % p.a., on diminishing balance shall be calculated and debited to the respective loan accounts at the end of every month.
4.
Purpose of Loan:

Construction of House or purchase of flat or Repairs/Renovation/Additions to the existing house and/or any other domestic need like Medical/ Ceremonial / Consumption.

5.
Repayment:

Maximum of 60 monthly installments or the left over service of the borrower whichever is lower, commencing immediately after disbursement.

6.
Renewal:

The Loan can be renewed on repayment of 1/3rd of monthly installments or on closure of the existing loan. The Board may specifically waive this stipulation, whenever the limit is revised upwards. Members whose existing loans are not in order are not eligible for the loan/renewal of existing loan. Monthly installment received in respect of closed loans or after the renewal of such loan/ loans shall be credited to new loan account/thrift deposit account, but in no case such installment shall be refunded.

7.
Other Terms and Conditions:

1. 10% of the loan amount (rounded off next higher digit to be divisible by 10) shall be collected as share capital which will be refunded at the time of retirement or Resignation/VRS from Andhra Bank and after six months in the case of closure of membership, while continuing as staff member of Andhra Bank.
2. Processing charges along with applicable service tax shall be collected as noted here-under.
  Processing Charges
Substaff Rs. 50/-
Clerks Rs. 100/-
Officers Rs. 150/-
3. The loan is covered by Member Mutual Benefit Fund scheme.
4. Members shall contribute towards MMBF scheme, every month as noted below during the currency of the loan for availing the benefit under the scheme.
a Loan amount up to Rs. 50,000 Rs.50/- p.m.,
b Loan amount above Rs 50,001/- & Up to Rs. 75, 000/- Rs.100/- p.m.,
c Loan amount above Rs. 75,001/- & up to Rs.1,50,000/- Rs.150/- p.m.,
d Loan amount above Rs. 1,50,001/- & up to Rs.2,00,000/- Rs.200/- p.m.,
e Part Time Sweepers, irrespective of limit Rs.20/- p.m.,

5. Members whose existing loans are not in order are not eligible to avail this loan.
6. Members have to enclose original/attested copy of the latest pay slip to the loan application.
7. Loan shall be sanctioned subject to the Member having sufficient net pay to recover the installment of the proposed loan.
8. Loan shall be applied on the prescribed application form duly filling all the required columns.
9. In respect of loans being availed by members who are suspended/dismissed/terminated/compulsorily retired from the service of Andhra Bank, the procedure given at item no.7 of Long Term Loans to be followed.

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IV. LOANS AGAINSTS THRIFT DEPOSITS

I.

Eligibility:

A member is eligible to avail a loan up to 85% of the Thrift Deposit accumulated against his name.


II
Repayment:

The loan is repayable in 36 monthly installments.


III.
Rate of Interest:

One percent above the interest paid on Thrift Deposit. The present applicable rate of interest on Loan against Thrift deposit is 9.50% which is 1% above the present rate of interest being paid on Thrift Deposits i.e., 8.50% (w.e.f. 01-10-2017). The interest is charged on diminishing balances, calculated and debited to the respective loan accounts, at the end of every month.


IV.
Purpose:

Construction of House or purchase of flat or Repairs/Renovation/Additions to the existing house and/or any other domestic need like Medical / Ceremonial / Consumption.


V.
Renewal:

The Loan can be renewed on repayment of 1/3rd of monthly installments or on closure of the existing loan.


VI.
Application:

Members have to apply for loan by submitting prescribed loan application, duly filling in all required columns.


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V. LOANS AGAINSTS NATIONAL SAVINGS CERTIFICATES
I.
Eligibility:

A member is eligible to avail a loan up to 80% of the face value of NSCs purchased on or after 01.03.2002.


II.
Maximum Limit:

Rs.3.00 lakhs


III.
Repayment:

One percent above the interest paid on Thrift Deposit. The present applicable rate of interest on Loan against Thrift deposit is 10.00% which is 1% above the present rate of interest being paid on Thrift Deposits i.e., 9.00% (w.e.f. 01-06-2016). The interest is charged on diminishing balances, calculated and debited to the respective loan accounts, at the end of every month.


IV. Rate of Interest:

11% p.a., at monthly rests


V.
Other terms and conditions:
1.

A sum of Rs.750/- Plus applicable service tax will be collected towards processing charges.


2.

Prescribed application duly filled in and signed is to be forwarded through the Branch where the member is working to Central Office. On scrutiny of the application, Central Office will send the sanction letter along with the form of transfer Certificate. On receipt of the sanction letter, Member has to submit the National Saving Certificate(s) to the Central Office after getting a lien marked on them in favour of the Bank by the respective post office at which the NSCs are purchased. On receipt of the NSC(s) after making a lien on them in favour of the Bank, Central Office will then send a cheque for the loan amount in favour of the Members to the respective branches.


3.

2.5% of the loan amount (rounded off next higher digit to be divisible by 10) shall be collected as share capital which will be refunded at the time of retirement or Resignation/VRS from Andhra Bank and after six months in the case of closure of membership, while continuing as staff member of Andhra Bank.


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VI. HOUSING LOANS SCHEME TO AB PENSIONERS
  Norm Details
a. Scheme HOUSING LOANS TO AB PENSIONERS
b. Eligibility
1 Pensioners of Andhra Bank on enrolling as nominal members by applying for it in prescribed format along with non-refundable entrance fee of Rs.10.00
2 For housing purpose at Metro and Urban areas only.
3 Co-application of any of the family members is permitted.
4 4 times of the annual income of pensioner and co-applicant + 50% of expected rent.
5 Minimum take home pension should be 30% of total pension after proposed loan installment
6 The Pensioner should not have any outstanding Housing loan from any other Bank.
7 Pensioners whose earlier loans with the Bank as member were either written off and/or with irregular repayment history are not eligible.
8 Sanction/Rejection of the loan is at the sole discretion of the Bank.
9 Loans will be considered only up to the Portfolio Exposure limit fixed by the Board.
c. Maximum Age 70 years
d. Maximum Loan Rs.10.00 lakhs
e. Rate of Interest 12.00%
f. Repayment Repayable in 120 EMI or EMI eligible up to the age of 70 whichever less is.
g. Purpose • House construction/enlargement Rs.10.00 lakhs. Renovation / Repairs Rs.5.00 lakhs. In case of outright purchase of a house/flat, the age of the house should be less than 10 years and Engineer’s estimated life span of house should be more than the repayment period of loan
h. Security
Equitable mortgage of title deeds of House property. The EM is to be registered with concerned Registrar in States where the system is in vogue or Pledge of Term Deposit equal to loan amount
i. Co-obligation Spouse and Staff member/Pensioner of Andhra Bank who is equal to or higher cadre than the applicant (co-obligation is waived when Term Deposit equal to loan amount is pledged)
j. Processing charges Rs.150/- per lakh or part thereof
k. Documents to be obtained
(a) Application for Loan
(b) Property statements of applicant/co-applicant and co-obligants
(c) Loan Agreement
(d) An irrevocable standing instruction letter given by pensioner and spouse, addressed to the Manager of Pension Paying branch to recover loan installments from pension/family pension account every month and remit to the credit of loan accounts, forwarded through pension paying branch, in Bank’s prescribed format
(e) Title Deeds along with link documents, Municipal and other statutory approvals, latest tax paid receipts, ECs for last 13 years, etc.,
(f) Memorandum of Deposit of Title Deeds (Registration is compulsory in the States where the system is in vogue)
(g) Engineer valuation report of property and estimates for proposed expenditure.
(h) Legal opinion
(i) Application – cum – lien letter along with discharged deposit receipt when deposit is offered as security.
i. Others Legal opinion and engineer fees and periodical pre and post sanction inspection charges have to be borne by the borrower.
j. Sanction At the discretion of the Bank
k. Accounts Maintenance At Central Office

VII CLEAN LOANS SCHEME TO AB PENSIONERS
Sl.No. Norm Details
1. Name of the Scheme CLEAN LOANS TO PENSIONERS
2. Eligibility (a) Pensioners of Andhra Bank on enrolling as nominal members by applying for it in prescribed format along with non-refundable fee of Rs.10.00.
(b) 5 times of monthly Pension
(c) The loans of the Pensioner should not have been written off earlier in the Bank and/or the Pensioner should not have irregular repayment history, while availing loans from the Bank as member.
3. Maximum Age 70 years
4. Maximum Loan Rs.1.00 lakh
5. Rate of Interest 15.00%
6. Repayment 36 EMI or eligible EMI up to the age of 70 years whichever is less.
7. Purpose To meet educational/medical/ceremonial expenses
8. Co-obligation Spouse and Staff member/Pensioner of Andhra Bank who is equal to or above the cadre of applicant
9. Processing charges Rs.250/-
10. Documents to be obtained (a) Application for Loan
(b) Property statements of applicant and co-obligants
(c) A certificate from pension paying branch on monthly pension being paid along      with pension account number.
(d) Demand Promissory Note & 3rd party letter
(e) Loan Agreement
(f) Post dated cheques drawn on pension account
(g) Irrevocable letter of undertaking to pension paying branch by pensioner and      spouse to deduct monthly instalments from pension/family pension account and      remit to loan account.
11. Sanction At the discretion of the Bank
12. Accounts Maintenance At Central Office

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Interest @ 1% above the interest being allowed on Loan against thrift deposit w.e.f 01.01.2005.
 
The information provided here is not subject to legal references for further details/clarifications you may please contact the Bank.