Syndicate Bank Unveils Loansfor Professionals

Certain schemes have also been designed for traders, teachers and professors. All the schemes are being offered at fixed rates of interest.

Personnel working in Indian Defence force - Army, Navy and Air Force and also paramilitary personnel such as BSF, Coast Guard will be eligible for the scheme.

The quantum of loan, that is being offered, will not exceed 10 months gross salary and subject to a maximum of Rs one lakh. The rate of interest is 15.5 per cent per annum with rebate of 0.5 per cent for prompt repayment compounded quarterly. The repayment will not exceed 48 equated monthly installments (EMIs).

 

The Syndicate trade finance scheme is being offered to all traders and 20 per cent of the total turnover declared in the latest sales tax return is being assessed for the purpose. There are certain other terms and conditions, which the traders are required to fulfil. The rate of interest is prime lending rate upto Rs 2 lakh, and 15.5 per cent per annum compounded quarterly for loans in Rs 2-25 lakh range. Mortgage of property or National Savings Certificates (NSCs) or Kisan Vikas Patras (KVPs) or Life Insurance Corporation (LIC) policy or the stock-in-trade can be hypothecated. Several branches have been identified for extending these facilities in metros.

Syndicate credit line to top executives covers additional or joint secretaries and above in central government, secretaries to state governments and top executives of big corporates or public sector undertakings such as chairman, executive director, managing director or equivalent posts.

The quantum that is being offered to the big corporates is upto 10 months gross salary, subject to a maximum of Rs 2 lakh. The rate of interest is 15.5 per cent per annum for loans and 15.5 per cent per annum for overdrafts compounded quarterly.

The rate of interest at 16 per cent per annum cmpounded quarterly, is a little higher for the teachers or professors. All teachers and professors working in educational institutions whose salary is credited at the bank's branch will be the beneficiaries.

During 1999-2000, aggregate deposits of the bank increased by 13.5 per cent against 19.3 per cent in the previous year. The bank credit rose by 17.7 per cent. Its capital adequacy ratio stood at 11.45 per cent.

Consequent upon its initial public offering (IPO) last year, the government holding has come down by 26.48 per cent. As on March 2000, there were over four lakh shareholders of the bank.