Loan

Utkal Co-Operative Bank Provides loan only to its members / Depositors. The regular employees of Odisha Government those who are non-transferable and Serving in the Heads of Department and Odisha Secretariat.

The Bank Provides 3 Different types of loans to members Such as

Personal Loan / Consumer Loan

Utkal Co-Operative Bank Provides loan only to its members / Depositors. The regular employees of Odisha Government those who are non-transferable and Serving in the Heads of Department and Odisha Secretariat.

Housing Loan

One member can avail Housing loan maximum amounting rupees fifteen lakh(15 lakh) which shall be recovered with in either 180 consecutive monthly installment or shall be repaid before the retirement of 6 months earlier along with rate of interest 11.5 per annum.

Term Deposit loan

The costumer who have term deposit with the bank can avail loan against their term deposit at the ratio of 80% of their deposit face value and on the said loan interest shall be charged additional 2% more on the respective loan amount.

SURETY FOR LOAN

The applicant /members intending to avail loan from the bank shall provide one member surety for every loan up to Rs. 1,00,000.00 (Rupees one lakh) only provided that no member shall be eligible to stand surety for another if (i) He is a defaulter (ii) If his date of superannuation is not less than the date of last repayment of loan availed by the applicant (iii) If he holds any office in the Bank Provided further that the bank may ensure adequate security of securities as may be required under the relevant loan rules or the Bye-laws of the bank depending upon the nature of loans and repaying capacity of the borrower.

RELEASE OF SURETY

A member standing surety for another member shall be deemed to have ceased to be such surety with effect from the date the outstanding loan together with the interest of such other member is fully repaid.

PERIOD WITHIN WHICH LOAN TO BE REPAID

• Repayment of loan shall not extend beyond.
  • one year if the amount of loan does not exceed two months basic pay.
  • two years if the amount of loan does not exceed three months basic pay,
  • three years if the amount of loan does not exceed four months basic pay,
  • four years if the amount of loan does not exceed five months basic pay,
  • five years if the amount of the loan exceeds six month basic pay, provided that the number of installments of recovery shall be so fixed that there shall be an interval of at least six clear month between the date of the last installment and the date of superannuation of the loanee.

• The members of the society who are working under different Drawing & Disbursing officers & rendering help in the matter of collection of dues of the Society from the pay bill/leave salary/D.C.R.G. etc. whatever, the case may be of the loanee members may be appointed as collection Agent on the recommendation of the concerned D.D.O. and such member may be allowed collection charges @1% over the collected amount deposited with the Society.

INSTALMENT OF REPAYMENT

• Every loan shall be repaid in monthly instalments which shall be due on the 10th day of every month. If the 10th of the month is a Sunday or holiday the next working day will be treated as due date, and the amount of each instalment shall as far as practicable the equal.
• On failure of payment of any instalment by the due date the loanee shall be treated to be in default.
• If a borrower fails to pay any instalment according to the terms agreed upon and on the due date, he shall be liable to pay penal interest on the principal amount defaulted at such rate not exceeding 1½% as may be fixed by the Board from the date on which it becomes due till the date of realisation in addition to the ordinary interest on the non-overdue portion of the loan. In calculating such interest fraction of a calender month shall be recknoned as a whole month.

OUTSTANDING AMOUNT OF LOAN AGAINST FIXED/SATADHARA DEPOSIT TO BE RECOVERED

• Where a loanee fails to make timely repayment of instalments and the amount of overdue together with interest come to 90% of the time deposits the loan together with interest shall be adjusted against such deposit. Every applicant for a loan against deposits shall execute a bond in the form to be prescribed by the Society. Such loan shall be governed by the rule or rules as prescribed by the Board from time to time.
• Outstanding amount to be Recovered on Default : Where a loanee fails to make repayment of loan instalments for six months the Committee shall have power to close the loan account and take steps for recovery of the entire amount. The Board may however on realisation of the outstanding amount i.e. defaulted amount together with interest accrued thereon may reopen the loan account and allow the borrower to continue repayment of the loan for the period for which it was originally sanctioned, provided Vo the reasons shown by the borrower satisfy them.

EXECUTION OF BOND

Every applicant for a loan shall execute a bond in favour of the Society and sign an authority slip for the recovery of the instalments by deduction from his pay as per the provisions of Section 35 of the Orissa Co-operative Societies Act. and the Rules framed thereunder. Every bond for a loan shall state the purpose for which the loan is sought and also contain a condition that in case the loan be applied to any other purpose the borrower shall be liable to repay the entire amount of loan outstanding against him together with penal interest thereon.

PRIORITY OF LOANS

When two or more applications for loans are considered at the same time and if the funds at the Society’s disposal be insufficient to meet the requirements of all the applicants, smaller loans shall ordinarily have preference over the larger ones.

Provided that the Committee may, in fit oase having regard to the urgency of the requirement of any applicant for loan, consider his case, in preference to others.

MODE OF CHARGING INTEREST

For the purpose of charging interest other than penal interest, a month shall be divided in to three parts, namely from 1st to 10th, 11th to 20th and 21st to end of the month. Interest shall be charged from the beginning of the part during which the loan is taken till the last date of the part during which the loan or any part thereof is repaid.

But in case of loan against deposit interest shall be calculated on daily product basis.

LOAN TO BE IMMEDIATELY REPAYABLE ON CESSATION OF MEMBERSHIP

Any sum outstanding against a members, who ceases to be a member by reason of death, resignation expulsion or otherwise shall be immediately payable to the Society not withstanding anything in the terms and conditions subject to which the loan was sanctioned.