Smart Overdraft Facility

Smart OD Scheme is designed to meet day to day requirements of salaried segment of reputed organisation/institution. The member will submit prescribed application along with the required documents and proofs. Post verification, if all the documents and papers are found in order, the prospective borrower, at the bank’s discretion, will be extended a limit up to ten times of his take home salary, subject to minimum ₹. 50,000.00 and maximum limit of ₹ 5,00,000.00. The borrower shall have to obtain shares of 5% of the sanction limit amount.

S No.	Title	Description
1.	Nature of account	The borrower will be given a limit in which he would be required to deposit monthly interest which will be debited to his account at the end of each month. He will be given time till the 4th of every month to make the payment in order to avoid recovery action. If the borrower defaults for 2 consecutive months, The Bank may consider recalling overdraft limit.
2.	Eligibility	Borrower and both the sureties should be regular members of the Bank. Age of borrower and sureties should be between 25 to 56 years. Borrower and sureties should be employee of reputed organisation/institution. CIBIL Report will be considered. Track record of previous loans (from our bank or from any other bank) will be taken care.
3.	Purpose	This scheme will be extended only for personal use of the borrower. The borrower will have to give a declaration that the amount will be used for legitimate personal use only, and will not be utilised for speculative purpose.
4.	Interest	The borrower will be charged interest at the rate of 14.5% p.a. only liveable on monthly basis on the over draft amount being utilised. The calculation of interest payable by the borrower will be done on a daily basis. Penal interest @ 2% p.a. will be charged if debited interest is not deposited by the borrower and balance of account remains above drawing power. Any credit balance in the account will not earn interest from the bank.
5.	Repaying Capacity	Smart O.D. facility be set up in such a manner that all deductions including serving of interest on Smart O.D. should not exceed 60%.
6.	Processing Fees	Processing fee @ 0.5% of sanctioned limit amount will charged at the time of disbursement of limit.
7.	Time Period	Limit will be sanctioned for a period of not more than 3 years or the date of retirement, whichever is earlier. The bank, at it’s discretion, may extend the limit for a period of up to 2 years subsequently, but within the retirement age. The limit shall be reduced on yearly reducing basis near retirement.
8.	Review of O/D Facility	The facility, shall be reviewed annually subject to prescribed slab charges.
9.	Surety	Prospective borrower will have to provide 1 or 2 personal sureties, as the case may be, who are regular members of the Bank.

Key features of the scheme:

S No.	Description
1.	Avail an overdraft limit up to 10 times of net salary.
2.	Avail an overdraft with easy documentation.
3.	No pre closure charges.
4.	Freedom to use limit through Cheque book.
5.	Pay interest only on the amount utilized.

Documents required at the time of applying for the facility:

S No.	Description
1.	Application form.
2.	Self attested Salary Slip for last 3 months.
3.	Self attested ITR for last 2 years.
4.	Self attested copy of PAN.
5.	Self attested copy of Address proof.
6.	Self attested copy of Identity proof.
7.	Self attested Bank statement minimum for last 6 months.
8.	Undertaking on prescribed format from the employer of borrower and sureties, duly jointly/singly signed by the person who is authorised to sign this undertaking and/or local head of the institution/organisation with as the case may be their official stamp.

Documents at the time of disbursal:

S No.	Description
1.	Agreement.
2.	Promissory note.
3.	Borrower’s authorisation letter.
4.	Surety’s authorisation letter.
5.	Acknowledgement of section letter, loan documents.

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