PUNJAB & SIND BANK

( ) / (A Government of India Undertaking)

, 5 , , 21, , -110 008

Retail Lending Department, 5th Floor, 21 Rajendra Place, New Delhi-110 008
Tel No. :011-25716351 /Fax:011- 25727956 - E-mail: ho.retail-mktg@psb.co.in
34 /2014
29.12.2014
.... / Circular no.
/Date:
/Code No. of the Department

H-9014

/Number of pages of circular

ALL BRANCHES /CONTROLLING OFFICES

Reg: PSB Family Bonding Scheme.

Scheme Code- STFLO, GL Code- 10090, Sector Code- 231 (Staff Clean Loan), and Sub
Sector Code- 201 (Family Bonding Scheme).
The Bank has been recruiting a large number of staff in different cadre. The staff coming from
different places all over the country need to be made to feel at home by providing them with
mentorship, and initial financial support. Experience shows the general requirement of the new
staff for finances arises out of need to purchase home equipment, two wheeler, laptop, and
expenses on marriage, and other family financial obligation, etc.
While the Bank already has in place scheme for advance to staff for general purpose in the form
of Staff Clean OD, and also a SBOD scheme, need for filling the time gap before staff became
eligible for this scheme was felt.
Now in order to bridge the gap and to assist the newly recruited staff in Officer & Clerical cadres
to meet with all their miscellaneous needs and obligations a new scheme is being launched by the
Bank on the terms as under:
1) Purpose: To provide the new members of the PSB family, term loan on easiest terms to
meet personal/ social requirements, for the intervening period till he/ she becomes eligible
for Staff Clean OD Scheme of the Bank.
2) Eligibility:
(a) The officer staff who have completed Six months of regular service, but less than three
years service. On becoming eligible for the Staff Clean OD Scheme, the staff would not
be eligible for this scheme.
(b) The clerical staff who have completed Six months of regular service, but less than three
years service. On becoming eligible for the Staff Clean OD Scheme, the staff would not
be eligible for this scheme.
(c) The staff member should not be on leave without pay for 60 days from his date of joining
till applying for loan under this scheme, or in last 12 months at the time of applying of
Loan.
(d) The staff should not be involved in any Major Penalty/ Gross misconduct proceedings.

(e) The BMs have been given discretionary powers (as per clause 11 of this circular) to
sanction loan under the present scheme. The respective BMs would determine and
confirm eligibility, as above,
of the staff whose loan therefore
falls in their
discretionary powers, and place a certificate to the effect in the loan file of the borrower.
(f) Similarly, the Chief Managers of the ZOs & HO would determine and confirm eligibility,
as above, of the staff under their control, and issue certificate to the effect that would be
placed in the loan file of the borrower at the loan sanctioning branch.
(g) The Chief Manager of respective Zones would determine and confirm eligibility, as
above, of the BMs of their Zone, and issue certificate to the effect that would be placed in
the loan file of the borrower at the loan sanctioning branch.
3) Interest rate:
BR + 0.75%, with minimum of 11%
4) Security

5) Guarantee :

Personal
Nil

6) Quantum of Finance: For officers- Rs. 1.50 lac for service of 6 months and above.
For Clerical - Rs. 1.00 lac for service of 6 months and above.
7) Repayment:
Maximum repayment period of three years. If in the meantime the officer/ clerk becomes
eligible for the Staff Clean OD, he/ she can exercise the option by adjusting the present
Term loan by debit to the Clean OD sanctioned to him as per Banks scheme and employees
eligibility. Otherwise, the term loan would be adjusted in due course.
7) Documents:

As applicable to Personal Loan scheme of the Bank.

8) Documentation Charges:

Actual charges.

9) Review of facility:

Every year.

10) Processing charges:

NA

11) Discretionary Powers:

All BMs in Scale II:
Clerks and officers in Scale I posted in the B.O.
All BMs in Scale III:
Clerks and officers in Scale I, II posted in the B.O.
All BMs in Scale IV & above: Clerks and officers in all Scales in the B.O.
CMs at the ZOs (ZM where CM is not posted): All BMs irrespective of scales.
NOTE:
For all the staff of the Zonal Offices and Head Office, the BM of their Salary Disbursing
Branch would be the sanctioning authority, irrespective of the Scale of the Applicant or the
BM.

12) Other terms and conditions:

1. The CIBIL report in respect of the employee should be satisfactory.
2. The employee will give a certificate that the loan would not be used for any speculative
purpose.
3. Letter of authority to the Bank from the employee and his PF/ Pension nominee to
appropriate his/ her terminal dues towards adjustment of this loan in case the employee
ceases to be in Bank service, for whatever reason or in case of untimely death during
service.
4. Employees take home salary not to be below 40% of gross monthly salary, after taking
into deductions including EMI for this loan.
5. The latest salary certificate duly attested by the Employer to be obtained.
6. The employee during the currency of the loan can avail staff Housing and staff Auto
Loan, if otherwise eligible, the present account being regular, and take home salary not
fall below 40% monthly emoluments, taking into account the EMI of all loans.
7. The EMI would be deducted directly from the salary of the employee, before credit to
his/her account.
8. Any irregularity would be immediately reported to the ZO/ HoD.
9. The loan accounts should be opened in Finacle under the Scheme Code- STFLO, GL
Code- 10090, Sector Code 231 ( Staff Clean Loan), and Sub Sector Code- 201
(Family Bonding Scheme)

Chief Manager