Home > Retail > IOB Insta Pension-Covid-19 Relief Loan
Last Updated on 02/04/2020
IOB Insta Pension-Covid-19 Relief Loan

INTRODUCTION OF NEW SCHEME: IOB INSTA PENSION (COVID-19 RELIEF) LOAN

SALIENT FEATURES OF IOB INSTA PENSION (COVID-19 RELIEF) LOAN: 

Sl

Parameters

Details of Scheme

1.

Target   Group

All pensioners excluding Malaysian Government pensioners receiving pension through our Bank branch.

Eligible Pensioners are categorized as per our existing Pensioner’s Loan Scheme:

Category: A

All Central Government, State Government, Defense, Railways and TNEB Pensioners, Retired IOB employees, etc., whose original Pension Payment Order (PPO) remains in the custody of Bank and are maintained by us directly as original pensioners.

Category: B

All Pilot Pensioners, such as State Government pensioners, Pensioners of Municipal Corporations, Ex-gratia pensioners etc., whose pensions are disbursed by Government Treasuries by means of cheques drawn in favour of our branches, as per mandate of the pensioner. In such cases, the original Pension Payment Order (PPO) remains in the custody of the Treasury and the pensioner gives a mandate to the Treasury for payment of pension through a particular branch of bank.

Category C:  Family Pensioners of all the categories.

Note: Staff members of our Bank, in service, who are also pensioners under any of the above category, are not eligible for loan under this scheme.

2.

Purpose

For meeting unforeseen expenses due to Covid-19.

3.

Eligibility

All Existing Pension Account holders irrespective of having availed Pensioner’s Loan from our Bank.

In case of additional loan for the existing borrower, all the existing loan accounts should be in Standard Category. SMA1/SMA2 accounts are not eligible for additional facility under above scheme at the time of sanction of loan.

4.

Eligibility Age

There is no maximum age limit prescribed under the Scheme.

5.

Validity

Up to 30/06/2020

6.

Nature of facility

Term Loan

7.

Quantum of Loan

Eligibility under IOB INSTA PENSION (COVID-19 RELIEF) LOAN

Category A:

    I.  Up to 70 Yrs- 20 times or Rs. 5.00 lakhs whichever less.

   II.  70 yrs & above- 20 times of monthly pension or Rs. 3.00 lakhs whichever less.

Category B:

  I.  Up to 70 Yrs- 15 times of monthly pension or Rs. 5.00 lakhs whichever less.

 II.  70 yrs & above- 15 times of monthly pension or Rs. 3.00 lakhs whichever less.

Category C:

 I.    Up to 70 Yrs- 15 times of monthly pension or Rs. 3.00 lakhs whichever less.

II.    70 yrs & above- 15 times of monthly pension or Rs. 2.00 lakhs whichever less.

Maximum Loan amount is restricted to Rs.5.00 lacs for age upto 70 years and Rs.3.00 lacs for age 70 years & above respectively which is similar to our existing Pensioners’ Loan Scheme.

8.

Margin

Nil

9.

Rate of Interest

1 YR MCLR + 1.50% [ 0.20% (strategic premium) + 1.30% (Risk Premium)].

10.

Holiday Period

Uniform Holiday period of 3 months.


11.

Repayment Period

Repayment period of 60 months for those who are not over 70 years and 36 months for those above 70 years; including holiday period of 3 months.

12.

Security

The following securities are to be obtained from all the borrowers including IOB Staff Pensioners:

  1. For Pensioners up to 70 years- Guarantee from spouse or any one of Legal Heirs OR from Third Party in Form 111 & F 378.
  2. For Pensioners above 70 years and for Family Pensioners- Guarantee from spouse or any one of the Legal Heirs is to be obtained. Wherever Spouse/Legal Heirs not available, third party guarantee is to be obtained.

13.

Processing charges

Processing/Documentation/Pre-closure charges - NIL