1

Purpose

For meeting any household / social expense such as expenses incurred on marriages, festival or meeting other obligations.

Loan can be granted on basis of declaration by applicant.

2

Eligibility

All pensioners excluding Malaysian Govt. pensioners receiving pension through our Branch based on following categories.

Category A:

All Central Govt., State Govt., Defence, Railway and TNEB pensioners, Retired IOB employees whose PPO remains in custody of Bank and are maintained directly as original pensioners.

Category B:

All pilot pensioners such as State Govt. pensioners, pensioners of Municipal Corporations, Ex-gratia pensioners etc. whose pensions are disbursed by Govt. Treasuries by means of cheque drawn in favour of our Branches / remitted by other electronic means as per mandate of the pensioner. In such cases, the original PPO remains in custody of the Treasury for payment through a particular Branch of a Bank.

*Apart from the above, pensioners categorized under Category A whose PPO is held with our Bank shall migrate to Category B whenever there is a change in modality of pension payment and PPO is called back by the respective Dept. However, they continue to maintain their pension account with our Bank.

Category C:

Family pensioners of all categories.

3

Age

No maximum age limit

4

Eligible Loan Amount

Pensioners coming under Category A :

✓ Age upto 70: 20 times of monthly pension subject to max. of Rs.10 lakhs

✓ Age above 70: 15 times of monthly pension subject to max. of Rs.6 lakhs

Pensioners coming under Category B:

✓ Age upto 70: 15 times of monthly pension subject to max. of Rs.10 lakhs

✓ Age above 70: 15 times of monthly pension subject to max. of Rs.6 lakhs

Pensioners coming under Category C:

✓ Age upto 70: 15 times of monthly pension subject to max. of Rs.6 lakhs

✓ Age above 70: 15 times of monthly pension subject to max. of Rs.4 lakhs

5

Take home pay norms

50% THP norms

6

Margin

Nil

7

Security

✓ Age upto 70: Guarantee from spouse or any one of legal heir or third party

✓ Age above 70: Guarantee from spouse or any one of legal heir. Wherever spouse / legal heir not available, thirty party guarantee to be obtained.

In addition to the above, in case of pensioner under Pilot pension scheme of State Govt., following steps to be taken

• Branch should send a letter to the pension paying officer soon after granting the loan informing that loan has been granted against pension as security and any change of pension account should not be entertained without reference to the Bank

• Obtain an undertaking letter from the pilot pensioner.

8

Repayment Period

✓ Age below 70: 60 months

✓ Age above 70: 36 months

Repayment shall commence for next month of availing the loan

9

Processing Charges

✓ 0.75% for all loans more than Rs.10,000/-

10

Other Features

✓ In case of request of transfer of pension account to other Branch of IOB, Pension loan account shall also be transferred to the Branch

✓ Roll Over of pension loan by granting fresh loan to avail higher loan amount as per eligibility subject to:

• Existing pension loan should have run min. 12 months with satisfactory repayment and no overdue as on date of sanction of fresh pension loan

• Branch should ensure that existing pension loan should be closed in system and there should be only one pension loan account (i.e Fresh Pension Loan) outstanding at the end of day.

End use need not be verified.

In case of request for transfer of pension account to other Branch of IOB, Pension Loan Accounts shall also be transferred to that Branch.