PUNJAB NATIONAL BANK

INTEGRATED RISK MANAGEMENT DIVISION L&A

(CREDIT POLICY SECTION) Cir. No.89/2013
HO: 7, Bhikhaiji Cama Place, New Delhi - 110607

CPY -104

August 12, 2013

TO ALL OFFICES
In supersession of L&A Cir.

No. Date No. Date

163 24.10.07 156 24.12.09

:30
11
/20 107
LOANS & ADVANCES CIRCULAR NO. 89
19
/02 40

MASTER CIRCULAR - SCHEMES FOR CONVEYANCE LOAN TO

AWARD STAFF
3

Schemes for Conveyance Loan to Award Staff at concessional rate of interest

and at interest rate applicable for public have been circulated vide Loans &
Advances Circular No.163 dated 24.10.07 and subsequent circulars issued on
the subject from time to time.
08

2. Consolidated guidelines on the subject are available in the ANNEXURE.

(B L PATHEJA)
GENERAL MANAGER

INDEX: CONVEYANCE LOAN SCHEME FOR

MEMBERS OF AWARD STAFF
 ANNEXURE

SCHEMES FOR CONVEYANCE LOAN AT CONCESSIONAL RATE OF

INTEREST TO AWARD STAFF

A. Loan for Purchase of Scooter/Motor Cycle/Moped - For Award Staff

(other than Subordinate Staff) who joined the Bank service prior to
18.9.1989 (old Scheme) and those who have not given option to
avail Conveyance Loan under New Scheme

i) PURPOSE OF LOAN

Purchase of new Scooter/Motor-cycle/Moped or old scooter/motor-cycle

not more than 5 years old.

ii) ELIGIBILITY

:30
Permanent employees, other than members of subordinate staff, who
have put in at least three years of service as on 17.09.1989.

In case of members of clerical staff who have been promoted from

11
/20 107
subordinate cadre, three years of service from the date of their
promotion to clerical cadre has been completed as on 17.09.1989.
19
iii) AMOUNT OF LOAN
/02 40

90% of the invoice value in case of new scooter/motor-cycle/moped to

be purchased.
3

In case of old scooter/motor cycle not more than 5 years old, the
amount of loan should not exceed 90% of their current invoice value
less depreciation computed at the rate of 10% p.a. on written down
basis or purchase price, whichever is lower.
08

iv) RATE OF INTEREST

Free of interest.

v) SECURITY

Hypothecation of scooter/motor cycle/moped purchased with bank

loan.

vi) REPAYMENT

Scooter/Motor Cycle : In 60 equal monthly instalments.

Mopeds : In 36 equal monthly instalments.

2
B. Loan for Purchase of Scooter/Motor Cycle/Moped applicable to
Award Staff who joined the Bank Service on or after 18.9.89 and to
those Employees who joined the Bank Service before this date but
have given their option to avail the Loan under the New Scheme.

i) PURPOSE OF LOAN

Purchase of new scooter/motor cycle/moped or old scooter/motor cycle

not more than 5 years old.

ii) ELIGIBILITY

Award staff drawing pay of Rs.8800/-p.m. or more

‘Pay' for the purpose of conveyance loan shall be basic pay, stagnation
increment and that part of the special allowance as admissible under
the Bipartite Settlement.

:30
Permanent part-time Sub-staff may be sanctioned loan for motor
cycles/scooters provided the pro rata pay drawn by them is Rs.8800/-
or more. Other terms & conditions will remain same as are applicable

11
/20 107
to regular employees.

iii) AMOUNT OF LOAN

19
/02 40

i) For scooter/motor cycle       :     90% of the cost of vehicle or

Rs.60, 000/, whichever is less
3

ii) For mopeds : 90% of the cost of vehicle or

Rs.30, 000/-, whichever is less

In case of old scooter/motor cycle not more than 5 years old, the
amount of loan should not exceed 90% of their current invoice value
less depreciation computed at the rate of 10% p.a. on written down
08

basis or purchase price, whichever is lower, subject to a maximum of

Rs.60,000/-

iv) RATE OF INTEREST

Upto Rs.15,000/- : 7.5% p.a. (simple).

Above Rs.15,000/- : Higher of Bank Rate or 12% p.a. (simple).

v) SECURITY

Hypothecation of scooter/motor cycle/moped purchased with bank

loan.

3
vi) REPAYMENT

The loan together with interest thereon will be repayable in not more
than 84 equal monthly instalments in the ratio of 5:1 respectively. In
case an employee has lesser period of service, the repayment of the
principal and interest will be made during the remaining period of
service in the ratio of 5:1 respectively, the principal amount being
adjusted first in full.

vii) GENERAL CONDITION

a) Loan, if any, for purchase of Motor Cycle/Scooter, sanctioned on or after

8.11.2002 under the Additional Conveyance Loan Scheme at BPLR
given at Part D below may be converted upto the revised limit prescribed
under this scheme.

:30
b) Such conversion shall be permitted at the request of the employee by
the Incumbents of the branches having these accounts. The

11
concessional interest rate shall be effective from the date of request
/20 107
made by the employee. In case employee does not request for such
conversion, the existing interest rate stipulated under the Additional
19
Conveyance Loan Scheme will continue.
/02 40

c) The supplementary letter of hypothecation, as per Proforma F is to be

obtained from the employee seeking such conversion.
3

C. SCHEME FOR ALLOWING MOPED LOAN TO SUBORDINATE STAFF

i) ELIGIBILITY

Only those employees in the subordinate cadre, who have completed five
years of continuous service, shall be eligible for loan for purchase of a
08

moped.

Permanent part time subordinate staff drawing scale wages is also

eligible to raise loan on a pro-rata basis. The eligibility criteria of
allowing loan to permanent part time subordinate staff shall be the
same as applicable to full time employees.

ii) AMOUNT

Maximum 90% of the cost of vehicle or Rs. 14,000/-, whichever is less.

iii) INTEREST

The loan shall carry simple interest @ 7.5% p.a.

4
iv) REPAYMENT

Loan together with interest thereon shall be repayable in not more than
84 monthly instalments in the ratio of 5:1.

In case an employee has lesser period of service, the repayment will be

made during the remaining period of service.

v) GENERAL CONDITIONS

Those members of subordinate staff who avail of this facility will not be
eligible for loan for purchase of scooter, etc. under the New Scheme
‘Loan for Purchase of Scooter/Motor Cycle/Moped’ applicable to Award
Staff as given at Part B above.

The above terms & conditions of conveyance loan to subordinate staff

:30
for purchase of moped are effective from 1.4.94. In case any employee is
adversely affected by the above provisions and wants to avail loan under
the existing scheme of the bank, he may be allowed to avail of the

11
/20 107
facility according to his choice but the employees joining the bank or
becoming eligible for conveyance loan on or after 1.4.94 are governed by
this scheme only.
19
/02 40

D. ADDITIONAL LOAN TO AWARD STAFF FOR PURCHASE OF

TWO WHEELER
 
3

i) ELIGIBILITY

All staff members who are eligible to raise loan for purchase of two
wheelers including moped.

ii) MAXIMUM AMOUNT OF LOAN

08

i) For scooter/motor cycle : Rs.45,000/-

ii) For mopeds : Rs.13,000/-

However, the total amount of loan including the loan under the
concessional scheme should not exceed 90% of the cost of vehicle.

iii) RATE OF INTEREST

As advised from time to time. Presently BR+3.00 %

iv) REPAYMENT

Loan and interest is recoverable in a maximum of 84 monthly

instalments or remaining period of service whichever is earlier.

5
v) SECURITY

Vehicle purchased with the loan will be hypothecated to the Bank with
registration in the name of the borrower jointly with the Bank.

vi) GENERAL

a) Two separate accounts should be maintained, one for loan under the
Scheme at concessional rate of interest and other under the above
Scheme.

b) An undertaking from borrowing employee for appropriating his terminal

dues for liquidation of loan amount outstanding at the time of cessation
from the service of the bank should be obtained and kept on record.

:30
c) Instalments of both the loans, sanctioned under the concessional
scheme and under this scheme will be recovered simultaneously.

E. LOAN FOR PURCHASE OF BATTERY OPERATED/ELECTRIC

11
/20 107
VEHICLES

Central Motor Vehicle Rules (CMVR) notified vide GSR 589 (E) dated
16.9.2005, inter-alia, states that the battery operated vehicle having
19
power less than 0.25 KW and maximum speed less than 25 km. per
/02 40

hour shall not be deemed to be a motor vehicle.

The guidelines in case of battery operated/electric vehicles are as under:

3

a. The clause pertaining to obtention of registration of the vehicle in the

name of the borrower jointly with the bank and obtention of copy of
driving licence of the borrowing employee have been deleted.

b. A copy of the certificate to the effect that the vehicle does not require a
08

driving licence and registration from the Transport Authorities due to

exemption under CMVR vide GSR-589 to be kept in records.

c. All other terms and conditions applicable to loan for purchase of Two-
wheelers (scooter/motorcycle/mopeds etc.) such as purpose/eligibility/
quantum of loan/rate of interest/repayment etc. shall be applicable to
such loans.

F. LOAN FOR PURCHASE OF BICYCLE FOR AWARD STAFF INCLUDING

SUB-STAFF

i) ELIGIBILITY

- Confirmed members of staff having one and half years of service in the
bank including probation period.

6
- Permanent part time subordinate staff drawing scale wages are eligible
to raise loan on a pro-rata basis. The eligibility criteria of allowing loan
to permanent part time subordinate staff shall be the same as
applicable to full time employees.

- Second loan for purchase of cycle can be granted only after the lapse of
at least five years from the date of previous loan, provided the cycle
owned is sold and the previous loan is adjusted in full.

ii) AMOUNT OF LOAN

Not to exceed the invoice value of the bicycle or Rs.1200/- whichever is

lower.

iii) INTEREST

Free of interest.

:30
iv) SECURITY

Hypothecation of the bicycle purchased with bank loan.

11
/20 107
v) REPAYMENT

In 24 equal monthly instalments starting from the month immediately

19
succeeding the month in which the loan is granted.
/02 40

G. CONVEYANCE LOANS TO AWARD STAFF OF ERSTWHILE

NEDUNGADI BANK LTD (ENBL)
3

The guidelines relating to method of accounting/ charging interest,

interest rate, repayment period, etc. applicable in respect of
conveyance loan schemes for award staff of PNB shall be applicable in
existing conveyance loan to Award Staff of ENBL sanctioned prior to
08

date of merger, subject to the following:

Two-wheeler Loan

i) In case of two-wheeler loan to award staff, the loan sanctioned with

repayment period of more than 84 months shall be reduced to 84
months and instalment of the latest outstanding shall be refixed
keeping in view the applicable interest rate as per our Conveyance Loan
Scheme for award staff members.

However, if the loan has already run 84 months or more the same will
continue in terms of original sanction including rate of interest/method
of charging interest.

7
ii) In respect of loan for purchase of motor-cycle/scooter/moped sanctioned
prior to 8.11.2002, interest for loans upto Rs.30,000/- be charged at
simple rate and beyond Rs.30,000/- at BPLR. For such loan sanctioned
on or after 8.11.2002 interest at simple rate be charged even on the
loan amount exceeding Rs.30,000/- in terms of extant guidelines.
However, for loans beyond Rs.30,000/- for purchase of moped, interest
be charged at BPLR irrespective of the cut off date.

Other conditions

a) In all the above cases, while revising the repayment period in line with
PNB schemes, the period of loan already run shall be accounted for.

b) Such proposals shall be sanctioned at the request of the employee by

the authority competent to sanction conveyance loan to Award Staff. In
cases where such request is not received, the existing terms &
conditions on which these loans were sanctioned shall continue.

:30
c) The guidelines will be effective from 19.02.2004.

11
d) Fresh conveyance loan to award staff of ENBL would be governed by the
/20 107
existing PNB conveyance loan scheme for award staff.

Documentation
19
/02 40

Supplementary agreement as per Proforma ‘G’

H. CAR LOAN SCHEME FOR WORKMEN STAFF

3

i) ELIGIBILITY

Workmen Staff in Clerical Cadre who have completed 10 years of

service.

ii) PURPOSE
08

For purchase of a new car or old car which is not more than 10 years
old.

iii) AMOUNT OF LOAN

For New Car

85% of the cost of vehicle subject to a maximum of Rs.1,80,000/-.

For Old Car

85% of, valuation arrived at after providing depreciation at the rate of

10% p.a. on written down basis on the current invoice value of vehicle
or purchase price with a maximum of Rs.1,80,000/-.

8
iv) MARGIN

15%

v) RATE OF INTEREST

The interest rate offered to best customers by RAD, HO shall be

applicable to staff members availing car loan under the above schemes.
The interest rate shall be subject to change from time to time in terms of
RAD, HO guidelines for such loans to public.

vi) REPAYMENT

Loan & interest is recoverable in maximum of 200 monthly instalments

OR remaining period of service, whichever is earlier.

vii) SECURITY

Vehicle purchased with the loan will be hypothecated to the bank.

:30
viii) GENERAL CONDITIONS

a) Members of clerical staff are eligible to raise loan for purchase of car at

11
/20 107
public rate without adjusting existing Conveyance Loan taken by them
for purchase of two wheelers at concessional rate of interest subject to
fulfilment of all other terms & conditions of Car Loan Scheme to
Workman staff.
19
/02 40

b) Second time Car Loan to Workman Staff can be allowed after

adjustment of previous Car Loan Account availed under the Scheme.
3

c) As regards existing Car loans sanctioned with the stipulation of

repayment period of 84 months, if an employee makes request for
enhancing the number of instalments, the sanctioning authority may
reschedule the same so that the entire amount of loan along with
interest is liquidated within 200 months from the date of sanction of the
loan or the remaining period of service, whichever is earlier.
08

I. LOAN FOR PURCHASE OF CAR/ SCOOTER/MOTOR-CYCLES, ETC.

UNDER THE CONVEYANCE LOAN SCHEME FOR PUBLIC

(a) Award staff who have availed conveyance loan under staff loan scheme
(i.e. at concessional rate and/or at interest rate applicable for public)
can also avail conveyance loans for purchase of car/scooter/ motor-
cycles, etc. on the same terms and conditions with regard to margin,
repayment, security, rate of interest (compounded), etc. as applicable to
public subject to following additional conditions:

i) The amount of recovery in respect of the proposed loan as well as any

other loan/advance taken by the employee from the Bank or outside
(including Credit & Thrift Society), as well as notional monthly interest
on clean OD limit (assuming that the limit is fully drawn) should be
9
 limited to an amount which leaves at least 40% of the salary for the
employee after deducting instalments for various loans, provident fund,
income tax and other statutory deductions, if any. In other words, the
carry home pay of an employee shall not be less than 40% of the gross
emoluments.

ii) Deductions in respect of all loans to employees shall be made out of

their salary.

Establishment Incharge (from where the employee is drawing salary)

shall maintain complete record of loan availed by the staff member and
the instalments to be deducted. He shall also ensure regular deductions
and remittance of the instalments.

iii) The authority competent to sanction loan for purchase of car/two-

wheelers, to staff members under staff schemes shall be the competent
authority to sanction such loans to staff members under public scheme.

:30
iv) Various charges i.e. pre-payment charges, documentation, upfront fee,
etc. prescribed under public scheme should not be recovered from staff
members availing loan under public scheme.

11
/20 107
(b) The interest rate as applicable to public for purchase of various vehicles
would also be applicable to staff members for such loans.
19
J. CONTINUATION OF STAFF CAR LOANS AT PUBLIC INTEREST RATE
/02 40

AFTER RETIREMENT OR LEAVING THE BANK’S SERVICE

The amount outstanding, if any, in the car loan account of the

3

employees at interest rate applicable for public/ under public scheme at

the time of retirement including voluntary retirement or resignation may
be allowed to continue at specific request of the employee, at the sole
discretion of the sanctioning authority on the following broad terms &
conditions:
08

1. Interest Rate On the entire balance outstanding remaining under

car loan scheme for workmen staff and car loan
scheme for public, the interest rate as applicable to
public would be charged. The interest rate would be
determined based on the repayment period fixed from
the date of retirement/leaving the bank’s service.

2. Repayment Loan availed under car loan scheme for workmen

staff :

The loan along with interest is to be repaid within

maximum period of 60 months from the date of
retirement or leaving the Bank’s service. However, the

10
 total repayment period (i.e. both during the service and
thereafter) should not exceed 200 months.

Loan availed under car loan scheme for public

The total repayment period (i.e. both during the service

and thereafter) should not exceed the repayment
period as prescribed under public scheme i.e presently
60 months in case of old cars and 84 months in case of
new cars.
Sanctioning authority, while considering these cases,
should keep in view the income source of employee
(viz. rental income, interest income, pension, income
from some profession/service, family income, etc.) to
determine his repaying capacity. Sanctioning
Authority shall ensure that the employee shall be able

:30
to repay the amount of remaining instalments.

3. Security a) Existing hypothecation of the car will continue.

11
b) One suitable guarantee acceptable to the Bank.
/20 107
However, CMs/CHs & above may waive the
requirement of guarantee on merits of each
case.
19
c) In cases where an employee is drawing pension,
/02 40

a
letter of undertaking shall be obtained to the
effect that in the event of default in repayment
3

of
instalments including interest, the same may be
recovered from his/her pension account. (an
undertaking to this effect has been incorporated
in the supplementary letter of hypothecation)
Proforma ‘H’
08

4. Loaning Powers Authority competent to sanction car loan to staff

members shall be the sanctioning authority to consider
such cases.

5. Miscellaneous All other guidelines of the car loan scheme for public
shall be applicable.

6. Documentation Supplementary Letter of Hypothecation(stamped) :

Proforma ‘H’

11
 OTHER TERMS AND CONDITIONS APPLICABLE TO ALL THE ABOVE
SCHEMES

1. SANCTIONING AUTHORITY

Loaning powers for sanction of loan to staff will be the same as

applicable for similar schemes for public, depending upon the scale of
the designated officers. However Incumbents of the branches
(Scale I/II/III) and the designated officers of other branches/other
offices shall exercise full powers for sanctioning other conveyance loan
(other than car loan).

The loan to staff working in Administrative offices/other offices shall be

sanctioned by the designated officers of CO/FGMO/ZAO/other
offices/HO Divisions. The loan to staff on deputation to PNB

:30
subsidiaries/RRBs/other organisation shall be considered by the
branches maintaining the account of the organisation.

11
Any staff loan beyond the vested powers of the Incumbent Incharge
/20 107
shall be sanctioned by the designated officers of the respective Circle
offices.
19
2. Total Deductions applicable for all above schemes mentioned above
/02 40

(A to G)

All deductions except LIC premium including the instalment of the

3

proposed conveyance loan as well as notional monthly interest on

overdraft facility to staff members (assuming that the limit is fully
drawn) should not exceed 50% of the take home pay of the
employee. Take home pay for this purpose would mean gross salary
minus deductions on account of C.P.F. at the minimum rate, income tax
08

and other tax liabilities.

In cases where the deductions from the salary of an employee, prior to

the proposed loan for purchase of the vehicle is already 50% of the take
home pay or marginally more, such cases of staff working at branches
and other offices viz. LDMO/ZSC/RCC etc. may be considered by
respective Circle Head on merits provided the borrowing employee
submits to the satisfaction of the bank, the details of his additional
sources of income whereby he/she will be able to sustain
himself/herself or his/her family. Such proposals relating to staff
working at ZAOs/HO Divisions/CSC and FGMOs will be sanctioned by
DGM of concerned office/Division.

12
3. SECOND TIME LOAN UNDER CONCESSIONAL SCHEME

Loan can be granted for replacement of old scooter/motor cycle/

moped/bicycle after a period of five years provided the previous loan has
been adjusted in full, notwithstanding the fact that the old scooter has
been sold or not, before an application for a fresh loan is entertained.

Second loan for purchase of scooter/motor cycle before stipulated

period of five years may be sanctioned by the competent authority as
given at point No. 2 above, in very genuine cases where the vehicle is
stolen/damaged by accident and an FIR is lodged with the police and
where the outstanding under the previous loan are got adjusted out of
the claim amount. However, if the amount of claim received from the
Insurance Company is more than the amount of loan outstanding,

:30
quantum of the second time loan is to be calculated by reducing his/her
eligibility to the extent of the excess amount received after adjustment of
the earlier loan.

11
/20 107
4. WEIGHTAGE TO EX-SERVICEMEN RE-EMPLOYED WITH THE BANK

Wherever the eligibility criteria is linked with the period of service, Ex-
19
servicemen re-employed in our Bank, will be given weightage, for their
/02 40

becoming eligible for conveyance loan, by the number of years of service

rendered by them in the armed forces subject to their being confirmed
in our bank and having put in at least total service of 3 years for
3

purchase of Motor cycle/Scooter/Moped and 11/2 years for purchase of

Bicycle under Bank's Concessional Rate of Interest Schemes.

5. DRIVING LICENSE

The borrowing employee to give a declaration that he/she holds a valid

08

Driving licence (applicable in case of two-wheelers only) prior to

sanction of Conveyance Loan OR to give an undertaking to furnish the
same within six months from the date of sanction.

6. INSURANCE:

The vehicle financed will be comprehensively insured by the borrower

with usual Bank Clause. In case the employee fails to do so, the Bank
will have the discretion to get it insured and recover the cost so paid
from the employee's salary payable for the month immediately
succeeding the month in which the insurance is effected.

13
7. PROCEDURE FOR LEVYING INTEREST

(a) Loan availed under simple rate of interest:

For computing and charging simple interest at the prescribed rates for
the conveyance loan scheme, branches should maintain two accounts in
the name of the borrowing employee one for `Principal Balance' and the
other for `Interest Balance'. The loan amount should be disbursed to the
debit of `Principal Balance A/c'. On the basis of balance outstanding in
the `Principal Balance A/c', interest will be calculated and debited to
`Interest Balance A/c. The repayment instalments received would be
credited in the `Principal Balance A/c' till the adjustment of loan
account.

Thereafter the repayment instalments received would be credited in the

:30
`Interest Balance A/c'. No interest will be calculated on the balance in
the `Interest Balance A/c' to ensure charging of simple interest in the
account.

11
/20 107
(b) Loan availed under compound rate of interest:

For levying interest on conveyance loan availed under compound rate of

19
interest, branch would continue to maintain one account and interest
/02 40

will be debited to the account to ensure charging of compound interest.

8. PENAL INTEREST
3

In terms of letters of hypothecation, default in the payment of any of the

instalments of the loan or the interest, if any, on its due date, will
attract penal rate of interest, on the defaulted amount from the date of
default. However, in the interest bearing loan accounts, interest rate as
08

prescribed in the conveyance loan scheme would continue to be charged

during the dismissal/suspension period of the employee (who are
subsequently reinstated) and penal interest would not be charged in
such cases.

In cases where interest free loan is sanctioned to staff members, interest

as well as penal interest is not to be charged on such loans, if there is
default in repayment of loan instalments due to dismissal/suspension
(who are subsequently reinstated) or leave on loss of pay duly
sanctioned by the competent authority.

9. ADJUSTMENT OF LOAN IN CASE OF EMPLOYEES CEASING TO BE

IN BANK'S EMPLOYMENT

14
 With a view to safeguard Bank's interest in cases where the borrowing
employee ceases to be in the employment of the bank before adjustment
of the loan, an undertaking should be obtained from the borrowing
employee authorising the Bank to utilise the proceeds of PF/Gratuity
and other dues payable to him, if any, towards the adjustment of the
loan. Concurrence of the nominee, if any, should also be obtained.

10. RESCHEDULEMENT OF CONVEYANCE LOAN ACCOUNTS OF STAFF

MEMBERS WHO HAD BEEN DISMISSED/SUSPENDED BUT
SUBSEQUENTLY REINSTATED

i) The loan accounts of staff members who had been

dismissed/suspended but subsequently reinstated, may be rescheduled
by the authority competent to sanction such loans. These loans after
reinstatement should continue to be repaid in the total number of
instalments as per original sanction or the remaining period of service
whichever is earlier. However, the period during which the staff

:30
remained suspended/ dismissed, is not to be taken into account for
calculating remaining instalments.
ii) In cases where the remaining period of service is short and the total

11
outstanding cannot be adjusted in the prescribed instalments due to the
/20 107
stipulation of minimum take home salary; the outstanding, if any, at the
time of superannuation shall be recovered from the terminal dues of the
employee.
19
iii) The interest bearing accounts of staff, be upgraded to standard category
/02 40

after a period of one year, from the due date for first payment of interest
or principal, as per the rescheduled repayment.
3

11. TRANSFER OF OUTSTANDING IN EXISTING CAR LOAN ACCOUNT

OF MEMBER OF STAFF UNDER CAR LOAN SCHEME AT PUBLIC
RATE IN THE NAME OF SPOUSE WORKING IN THE BANK

Where both husband & wife are working in our bank and one of them
leaves the bank’s service, outstanding in existing car loan account of
08

the staff under the scheme at public rate may be transferred in the
name of his/her spouse working in the Bank on the following terms and
conditions:

The spouse in whose name the car Loan outstanding shall be

transferred should otherwise be eligible to raise car Loan in terms of
applicable scheme.

i) The car Loan account to be transferred in the name of his/her spouse

should be running regular and no inspection irregularity is
outstanding in the account.

ii) All other loan accounts of the transferee are regular.

15
 iii) The car should be transferred in the name of his/her spouse along
with Bank’s charge noted in the RC Book. Accordingly, insurance
policy should also be amended in the joint name of the transferee
spouse/bank.

iv) The balance outstanding in the Car Loan Account should continue to
be adjusted in regular monthly instalments and should be adjusted in
the stipulated instalments, as per original sanction.

v) Recovery of Car Loan should start from the month in which

outstanding of Car Loan has been transferred.

vi) Documents may be obtained in consultation with Law Manager/

Officer at CO/HO or bank approved counsel.

vii) Authority to permit transfer/continuing Car Loan in the name of

:30
spouse shall be the authority competent to sanction the car loan.

viii) All other terms & conditions of the car loan scheme for members of
staff at concessional rate of interest and at public rate shall continue.

11
/20 107
12. MISCELLANEOUS
19
i) Members of the staff including sub-staff can avail Conveyance Loan at
/02 40

one time either for purchase of Scooter/Motor cycle/Moped or Bicycle

under concessional scheme.
3

However, members of clerical staff are eligible to raise loan for purchase
of car at public rate and other conveyance loans under public scheme
without adjusting existing Conveyance Loan taken by them for purchase
of two wheelers at concessional rate of interest subject to fulfilment of
all other terms & conditions of Car Loan Scheme to Workman staff.
08

ii) There is no restriction of period between two conveyance loans raised

for purchase of two different modes of conveyance such as from cycle to
scooter/motor cycle/moped; from scooter/motor cycle/moped to car
and vice versa, provided the earlier loan stands adjusted (except car
loan) in full at the time of purchase of the other mode of conveyance.
The restriction of the period (s) as stipulated (in the scheme) for second
time loan for purchase of the same mode of conveyance would continue
as provided in the scheme.

iii) Purchase of the vehicle should be made within one month from the date
of drawl of the advance.

iv) Repayment of conveyance loan to commence from the month following

the one in which the loan is disbursed.

16
v) The vehicle purchased will be hypothecated to the Bank and shall be got
registered in the joint names of the Borrowing employee as
Hypothecator and the Bank as Hypothecatee.

vi) In case conveyance loan is raised for purchase of old vehicle, a

certificate is to be furnished by the intending borrowing employee that
the vehicle to be purchased with the Bank finance is road worthy.

vii) In cases where the borrowing employee purchases scooter/motor

cycle/car from some other person in whose name the Allotment Letter
stands and takes delivery of the vehicle direct from the show room, the
stipulated depreciation of 10% p.a. for the first year may not be charged
for the vehicle if the date of Sale Deed by the allottee in favour of the
borrowing employee is the same as the date of delivery of the vehicle
from the show room subject to the provision that the sale of the vehicle
is not restricted under any provision of law.

:30
viii) Request of sub-staff for purchase of two wheelers would be considered
only under the Scheme given at para B, C, D, E, F, G and I.

11
/20 107
ix) For computation of eligibility criteria wherever linked with period of
service in the Bank, leave on loss of pay for longer duration exceeding 3
months, the period of leave without pay be deducted.
19
/02 40

x) The bank can reject any loan application under the scheme without
assigning any reason whatsoever thereof.
3

xi) Conveyance loan at concessional interest rate should not be sanctioned

where the vehicle is proposed to be purchased from close relatives such
as father/mother/ son/daughter etc. However, conveyance loan for
purchase of vehicles may be allowed from close relatives (except from
spouse and dependent children) under the existing Conveyance Loan
Scheme at public rate.
08

xii) For interest rates in respect of conveyance loan to award staff also refer
to rate of interest circulars issued from time to time.

13. DOCUMENTATION

For all types of vehicles, i.e. Car/Scooter/ Motor Cycle/Moped/Bicycle

- Letter of request-cum-sanction letter (PROFORMA `A')

- Letter of hypothecation as per specimen (PROFORMA `B')

- Consideration voucher in duplicate (Original for documents and true

copy for Day Book).

17
- Letter of authority for deduction of monthly instalment direct from the
salary as per specimen (PROFORMA `C').

- Letter of authority authorising the bank to utilise the gratuity and other
dues payable to him/her on ceasing to be in the service towards
adjustment of the conveyance loan (PROFORMA `D').

- Letter of authority authorising the bank to utilise the PF payable to

him/her on ceasing to be in the service towards adjustment of the
conveyance loan (PROFORMA `E').

***************

:30
11
/20 107
19
/02 40
3
08

18
 PROFORMA ‘A’

LETTER OF REQUEST CUM SANCTION LETTER

- CONVEYANCE LOAN

To be submitted in duplicate

The Manager,

Punjab National Bank,

___________________

Dear Sir,

:30
Reg: LOAN FOR PURCHASE OF CAR/ SCOOTER/ MOTOR-
CYCLE/ MOPED/CYCLE
I request you to grant me loan of Rs.__________________
(Rupees_______________________) for the purpose of purchasing new/old*

11
/20 107
_______________________________________________________(type of vehicle) from
M/s/Shri___________________________for which proforma invoice or allotment
letter/agreement to sell (in case of old vehicle) is enclosed. I am eligible for the
19
loan applied for under the Conveyance Loan Scheme for members of staff
/02 40

being a confirmed employee of the bank with completed service of

_____________years having joined the bank on____________________.
3

I am holder of a valid driving licence** (photo copy enclosed).

I agree to deposit the prescribed margin money with the bank and to
execute the necessary documents.

Details of my monthly emoluments and deductions for the month

08

of_________________are as under:-

Deductions (Rs.)

BP ________________ PF _________________
DA ________________ PF Loan _________________
Spl.All. ________________ I. Tax _________________
HRA ________________ Festival
CCA ________________ Loan _________________
Other ________________ Housing _________________
________________ Loan _________________
________________ Notional Interest
________________ on OD _________________
_________________ Other _________________

Total _________________ Total _________________

19
* Details of old vehicles

- Registration Number.

- Date of purchase of vehicle by the seller from the dealer

** Applicable for two wheeler Auto

I have/have not availed Conveyance Loan facility earlier. (The previous

loan, if any, availed on_____________for purchase of________________stands fully
adjusted on______________).

I authorise the bank to pay the amount as per Proforma Invoice/as per
Agreement to sell, to Shri/M/s___________________ on my behalf. I agree to
hypothecate the vehicle to be purchased as a security for securing the said
advance of Rs._____________to be repaid in__________monthly instalments along
with interest @ __________. I undertake to get the vehicle registered jointly in

:30
the name of bank. I also undertake to keep the hypothecated vehicle insured
for its full value by taking comprehensive policy with bank clause.

11
I agree to abide by all terms & conditions of the scheme applicable from
/20 107
time to time, which I have read thoroughly.

Place_______________ Yours faithfully,

19
/02 40

Dated: (SIGN. OF THE APPLICANT)

3

Designation_______________
Office____________________

Res. Address______________

__________________________
08

The particulars given by the applicant are verified. He is eligible for the loan
under the scheme. Hence recommended for sanction.

Asstt. Manager/Officer/Spl. Asstt.

Name :

20
SANCTIONED RS.__________VEHICLE LOAN TO BE DISBURSED THROUGH

B.O.____________________

Chief/Sr. Manager/Manager
Name & GBPA No. :

A/c No. TL/____________/___________Monthly Instalments Rs._______

W.E.F.________________NOTED FOR REMITTING TO____________________

B.O.__________________________

:30
ESTABLISHMENT INCHARGE

11
/20 107
19
/02 40
3
08

21
 PROFORMA `B'

LETTER OF HYPOTHECATION
(For advances against Car/Scooter/Motor Cycle/

Moped/Bicycle to the members of staff)

The Manager Place________

Punjab National Bank Date_________

____________________

Dear Sir,

:30
1. In consideration of your allowing or agreeing to allow an advance of
Rs.______________(Rupees__________________) for

11
purchase of _____________________________________________________
/20 107
(mention the name and description of the vehicle its make & registration
number etc.) hereinafter called as `the hypothecated vehicle'. I hypothecate
19
and charge with the Bank the said hypothecated vehicle as security for the
/02 40

payment of the said loan, interest, costs and other charges on the following
terms and conditions agreed to by me.
3

2. That the said hypothecated vehicle shall be used by me for my personal

use. I agree that I will not sell, mortgage, give on lease or on hire or otherwise
part with the possession or encumber the said hypothecated vehicle in any
way till the repayment of all my liabilities.

3. That I undertake to keep the said hypothecated vehicle insured for its full
08

value by taking comprehensive policy in the name of Bank as

hypothecatee/mortgagee and myself as hypothecator/mortgagor with agreed
Bank clause with any Insurance Company approved by the Bank.

4. That I agree that the amount of loan advanced will be paid by me regularly
in equal monthly instalments of Rs.__________and the interest, if any, shall be
paid by me when the same falls due but the entire amount of loan and
interest, if any, will be paid within a period of_____________, the first monthly
instalment shall be paid after one month of the date of the loan.

5. (a) That the advance of Rs._________ has been made to me by the bank
interest free.

22
(b) That the advance of Rs. ____________ has been made to me by the bank at
the following interest rate on account of my being a member of the staff of the
bank:

(i) @ ________ p.a. on the first Rs.___________

(ii) @ ________ p.a. on the subsequent Rs.__________
(iii) @ _________p.a. on balance Rs. _____________ with _______ rest. In
case the interest is not paid by me in its entirety; it will form part of the
principal and carry interest at the above mentioned rate.
(c) The loan will remain interest free/ carry interest as above mentioned during
which I remain in the services of bank.

(d) In the event of discontinuation of my service from the bank for any reason
whatsoever or failure to adjust the outstanding advance out of the dues
payable to me at the time of my ceasing in the service of the bank, the
outstanding amount then unpaid shall bear and carry interest at applicable
rate.

:30
Notwithstanding the foregoing, I shall pay to the bank interest at such other
rate(s) as shall from time to time be fixed by the Bank and intimated to me.

11
The bank shall have the discretion to change the rate of interest as well
/20 107
periodicity of rests.

6. That in case of default in the payment of any of the instalments of the loan
19
or the interest, if any, on its due date I agree to pay increased interest at the
/02 40

rate of________% p.a. over and above the agreed rate of interest with agreed
rests on the defaulted amount from the date of default.
3

7. That in case I fail to pay any three instalments (not necessarily

consecutive) it shall be lawful for the Bank to recall by a demand in writing the
entire outstanding amount in account and I agree to pay the same
notwithstanding the period of instalments fixed as aforesaid.
08

8. I also agree that in case the amount outstanding in the account is not paid
by me after demand in writing by the bank, it shall be lawful for the bank and
its officers to call on me and take possession of the hypothecated vehicle. In
case of default on my part to deliver possession, it shall be lawful for the bank
and its officers to take possession of the hypothecated security from me and
sell the same by private contract or otherwise as pledge/attorney for and on
my behalf for adjustment of my loan account at my risk and responsibility,
and get the same transferred in the name of the purchaser by signing the
necessary documents without reference to me and I undertake to pay the
amount of shortfall if any.

23
9. Notwithstanding the above, in case of default or non-observance of any of
the terms and conditions of the loan and in case the hypothecated vehicle is
lost or destroyed or otherwise becomes unavailable or untraceable as a result
of theft or otherwise for any reason whatsoever or in case possession of the
same is not handed over to the Bank as provided above or in case the bank so
decides in its discretion, it shall have the right to immediately call upon me in
writing to repay the entire amount outstanding in the account, despite the
instalments fixed and I shall be liable to pay the same.

The hypothecated vehicle will be got registered with the appropriate

transport authority in the joint name of myself as hypothecator and the Bank
as hypothecatee.

Yours faithfully

:30
(SIGNATURE)

11
/20 107
Name:______________________

Designation:_______________
19
/02 40

BO:________________________

Address____________________
3

(In Block Letters)

NOTE: 1. To be stamped as an agreement and also a special power of

attorney as per rate prevailing in each State.
08

2. This letter of hypothecation should not be attested.

24
 PROFORMA’C’

LETTER OF AUTHORITY

The Manager

Punjab National Bank

BO:_________________.

Sir,

Reg: *_________________ Loan of Rs.____________________

(Rupees _________________________________________) for **______________

:30
With reference to the Term Loan of Rs._______________
(Rupees______________ ___________________________) obtained by me from
BO:_________________________ on_________against *** _____________________, I

11
hereby authorise you to deduct a sum of
/20 107
Rs.__________________________(Rupees_____________________________
_____________________) every month from my salary and remit the same to
BO:________________for credit of my aforesaid Term Loan Account with them
19
until the loan is fully adjusted.
/02 40

I agree and authorise you to utilise the amount of bonus and all other dues
3

whatsoever, payable to me on my ceasing to be in the employment of the Bank

or at the time of any payment of gratuity, PF, Bonus or other dues, towards
payment of the amount due on the aforesaid loan.

The authority given to you herein is irrevocable unless and until the Bank's
dues are repaid by me in full.
08

Thanking you, Yours faithfully

BORROWING EMPLOYEE

Place_____________

Date______________

* Mention type of loan viz. housing/vehicle/relief loan, etc.

** Mention the purpose of loan.

***Specify nature of security.

25
 PROFORMA ‘D’

(To be Submitted in Duplicate)

Letter of authority, authorising the bank to utilise the gratuity and other
dues, payable to the employee when he ceases to be in the employment of
the Bank, towards adjustment of *_______________ loan.

The Trustees
Punjab National Bank Employees'
Gratuity Fund Trust
New Delhi.
Reg: : *___________Loan of Rs.______________________

(Rs.___________________________________________)

Dear Sir,

:30
Whereas a loan for Rs.____________(Rupees______________) has been granted to
me by Punjab National Bank on _______________ to be availed by me at
________________________________________.

11
/20 107
And whereas I agree and authorise the bank to utilise the amount of
Gratuity and all other dues whatsoever, payable to me on my ceasing to be in
the employment of the Bank or at the time of any payment of such gratuity or
19
other dues, towards payment of the amount due on the aforesaid loan.
/02 40

I hereby authorise you to pay to the Bank to the extent of the outstanding
balance on account of principal and interest unpaid, the amount of Gratuity,
3

etc. and all other dues whatsoever, payable to me on my ceasing to be in the

employment of the Bank, due to retirement, termination of service, demise or
any other reason whatsoever, after demand by the Bank to be utilised towards
payment of the outstanding, including the interest accruing due, on the loan.
08

This authority is irrevocable until the loan mentioned above with interest
thereon is paid full.

Yours faithfully

Station:________________

Date:___________________

(Signatures, Name, designation and

PF a/c No. of the borrowing Employee)

*Mention type of loan viz. Housing/Vehicle /Clean OD Facility/Relief Loan, etc.

26
 PROFORMA-‘E’

(To be Submitted in Duplicate)

Letter of authority, authorising the bank to utilise the PF dues, payable

to the employee when he ceases to be in the employment of the Bank,
towards adjustment of *________________ Loan.
The Trustees
Punjab National Bank Employees'
Provident Fund Trust
New Delhi.
Reg: *___________Loan of Rs.______________________

(Rs.___________________________________________)

Dear Sir,

Whereas a loan for Rs.____________(Rupees______________) has been granted to

:30
me by Punjab National Bank on _______________ to be availed by me at
________________________________________.

11
And whereas I agree and authorise the bank to utilise the amount of
/20 107
Provident Fund and all other dues whatsoever, payable to me on my ceasing to
be in the employment of the Bank or at the time of any payment of such PF or
other dues, towards payment of the amount due on the aforesaid loan.
19
/02 40

I hereby authorise you to pay to the Bank to the extent of the outstanding
balance on account of principal and interest unpaid, the amount of Provident
3

Fund etc. and all other dues whatsoever, payable to me on my ceasing to be in

the employment of the Bank, due to retirement, termination of service, demise
or any other reason whatsoever, after demand by the Bank to be utilised
towards payment of the outstanding, including the interest accruing due, on
the loan.
08

This authority is irrevocable until the loan mentioned above with interest
thereon is paid full.

Yours faithfully

Station:________________

Date:___________________ (Signatures, Name, designation and

PF a/c No. of the borrowing employee)

*Mention type of loan viz. Housing/Vehicle /Clean OD Facility/Relief Loan, etc.

27
 PROFORMA ‘F’

SUPPLEMENTARY LETTER OF HYPOTHECATION

(For advances against Scooter/Motor Cycle to the members of staff)

The Manager Place________

Punjab National Bank Date_________

____________________

Dear Sir,

:30
In consideration of your allowing or agreeing to allow further advance of
Rs.______________(Rupees__________________)(hereinafter referred as “further
loan” for repayment of the loan availed under ______________________(Name of
the scheme) for purchase of __________________(mention the name and

11
description of the vehicle its make & registration number etc.) hereinafter
/20 107
called as `the hypothecated vehicle'. I hypothecate and charge with the Bank
the said hypothecated vehicle as security for the payment of the said further
loan, interest, costs and other charges on the following terms and conditions
19
agreed to by me.
/02 40

2. That the said hypothecated vehicle shall be used by me for my personal

use. I agree that I will not sell, mortgage, give on lease or on hire or otherwise
part with the possession or encumber the said hypothecated vehicle in any
3

way till the repayment of all my liabilities.

3. That I undertake to keep the said hypothecated vehicle insured for its full
value by taking comprehensive policy in the name of Bank as
hypothecatee/mortgagee and myself as hypothecator/mortgagor with agreed
08

Bank clause with any Insurance Company approved by the Bank.

4. That I agree that the amount of loan advanced will be paid by me regularly
in equal monthly instalments of Rs.__________and the interest, if any, shall be
paid by me when the same falls due but the entire amount of loan and
interest, if any, will be paid within a period of_____________, the first monthly
instalment shall be paid after one month of the date of the loan.

5. (a) That the advance of Rs._________ has been made to me by the bank
interest free.

(b) That the advance of Rs. ____________ has been made to me by the bank at
the following interest rate on account of my being a member of the staff of the
bank:

28
 (i) @ ________ p.a. on the first Rs.___________
(ii) @ ________ p.a. on the subsequent Rs.__________
(iii) @ _________p.a. on balance Rs. _____________ with _______ rest. In
case the interest is not paid by me in its entirety, it will form part of the
principal and carry interest at the above mentioned rate.
(c) The loan will remain interest free/ carry interest as above mentioned during
which I remain in the services of bank.

(d) In the event of discontinuation of my service from the bank for any reason
whatsoever or failure to adjust the outstanding advance out of the dues
payable to me at the time of my ceasing in the service of the bank, the
outstanding amount then unpaid shall bear and carry interest at applicable
rate.

Notwithstanding the foregoing, I shall pay to the bank interest at such other

:30
rate(s) as shall from time to time be fixed by the Bank and intimated to me.
The bank shall have the discretion to change the rate of interest as well
periodicity of rests.

11
/20 107
6. That in case of default in the payment of any of the instalments of the loan
or the interest, if any, on its due date I agree to pay increased interest at the
rate of________% p.a. over and above the agreed rate of interest with agreed
19
rests on the defaulted amount from the date of default.
/02 40

7. That an advance of Rs.________________(_________) has been made to me by

the bank at concessional interest on account of my being a member of the staff
3

of the bank. Now the limit of Conveyance Loan at concessional rate of interest
has been enhanced from Rs.______________ to Rs.___________.

8. That the bank is authorise to debit the account in respect of the above said
further loan and credit/remit the proceeds to the loan account
08

No.________allowed under conveyance scheme at BPLR.

9. That in case I fail to pay any three instalments (not necessarily consecutive)
it shall be lawful for the Bank to recall by a demand in writing the entire
outstanding amount in account and I agree to pay the same notwithstanding
the period of instalments fixed as aforesaid.

10. I also agree that in case the amount outstanding in the account is not paid
by me after demand in writing by the bank, it shall be lawful for the bank and
its officers to call on me and take possession of the hypothecated vehicle. In
case of default on my part to deliver possession, it shall be lawful for the bank
and its officers to take possession of the hypothecated security from me and
sell the same by private contract or otherwise as pledge/attorney for and on
my behalf for adjustment of my loan account at my risk and responsibility,

29
and get the same transferred in the name of the purchaser by signing the
necessary documents without reference to me and I undertake to pay the
amount of shortfall if any.

11. Notwithstanding the above, in case of default or non-observance of any of

the terms and conditions of the loan and in case the hypothecated vehicle is
lost or destroyed or otherwise becomes unavailable or untraceable as a result
of theft or otherwise for any reason whatsoever or in case possession of the
same is not handed over to the Bank as provided above or in case the bank so
decides in its discretion, it shall have the right to immediately call upon me in
writing to repay the entire amount outstanding in the account, despite the
instalments fixed and I shall be liable to pay the same.

12. The hypothecated vehicle will be continued to be registered with the

appropriate transport authority in the joint name of myself as hypothecator

:30
and the Bank as hypothecate.

11
/20 107
This letter of hypothecation is supplementary to the letter of hypothecation
dt._____ already executed by me.
19
Yours faithfully
/02 40

(SIGNATURE)
3

Name:______________________

Designation:_______________

BO:________________________
08

Address____________________

(In Block Letters)

NOTE:

1. To be stamped as an agreement and also a special power of attorney

as per rates prevailing in each State.

2. This letter of hypothecation should not be attested.

30
 PROFORMA ‘G’

(To be Stamped as Agreement)

Supplementary Agreement for Conveyance Loan

This Supplementary Agreement is made at _____ on this _____ day

of _____ 20 __ between Shri / Smt / Km.
_____________________________ son/wife/daughter of Shri ______
______ _____ _______ r/o _______ ______ ______ ______ _______
______ (hereinafter called the ‘borrower’ which expression shall
unless repugnant to context include his/her heirs, executors,
administrators and assigns) of the One Part and Punjab National
Bank a body corporate constituted under the Banking
Companies (Acquisition & Transfer of Undertakings) Act, 1970

:30
having its head office at 7, Bhikhaji Cama Place, New Delhi and
amongst other a branch office at ____ _____ _____ _______
(hereinafter called the ‘bank’ which term shall unless repugnant

11
to context include its successors and assigns) of the Other Part.
/20 107
Whereas Erst. Nedungadi Bank Ltd.(eNBL) which was merged
with the bank as per scheme of amalgamation has allowed a staff
19
Conveyance Loan of Rs _______ (Rupees ___________________) to
/02 40

the borrower for the purpose of ______________________ as per the

terms and conditions agreed to under the Agreement for
Conveyance Loan dated _______ entered into between eNBL and
3

the borrower (hereinafter referred to as the ‘said Agreement’). The

borrower’s conyeyance loan account number is ______ . As on
_______ the amount outstanding in the a/c is Rs._____________.

Whereas the borrower desires to have the benefit of the applicable

revised guidelines to which the bank has agreed as herein
08

provided.

NOW THIS AGREEMENT WITNESSETH AS UNDER:

1. The borrower agrees and accepts that the amount due from the
borrower to the bank under the Conveyance Loan as
on___________is Rs. ________ (Rupees_________________) and
undertakes to repay the same with interest and in the manner as
provided herein

2. That with effect from ________ (effective date), the borrower agrees
to pay interest on Rs._______________ as under:

A. (i) @__________ p.a., on the first Rs.___________

(ii) @__________ p.a. on the subsequent Rs.__________ and
(iii) @__________ p.a., on the balance Rs.______with___ rests.

31
 B. That the borrower shall repay the remaining amount of loan (as
stated in para 1 hereof) and interest thereon in_______ monthly
instalments of Rs._________each, the first instalment to fall due on or
before_________.

C. The borrower also agrees to pay interest tax, if any, at the rates as in
force from time to time. The bank shall have the discretion to decide
the manner of computation of interest tax and charging thereof in
the account.

D. In case the account becomes irregular on account of non-payment of

instalment or for any other reason, the borrower agrees to pay
default interest @ __________ % per annum with _______ rests on the
amount then outstanding under the loan or on the defaulted
amount, as the case may be. Default interest is payable over and
above agreed interest.

:30
3. That in case the borrower dies or becomes insolvent, or leaves the
service of the bank or his services otherwise terminated by the

11
bank for any reason whatsoever the entire amount outstanding
/20 107
in the loan account and remaining unpaid shall at the option of
the bank become immediately payable and the security held by
the bank will become enforceable for the realisation of its
19
outstanding dues.
/02 40

4. All other terms and conditions as contained in the said Agreement

shall continue to remain in full force.
3

In witness whereof the parties hereto have set their hand on the day month
and year here in above mentioned.
______________
08

Borrower

For Punjab National Bank

__________________

Authorized Signatory

32
 PROFORMA ‘H’

1. To be stamped as an agreement.
2. This letter should not be
Attested.

SUPPLEMENTARY LETTER OF HYPOTHECATION

Place : ____________

Date : ___________

:30
The Manager

11
/20 107
Punjab National Bank

_____________________
19
Dear Sir,
/02 40

REG.: CAR LOAN ACCOUNT NO.________________ OUTSTANDING

3

RS.______________________ AS ON _____________________

1. Please refer to letter of hypothecation dated_________(hereinafter

referred to as Letter of Hypothecation) executed by me.

2. On my request, Bank has agreed to for continuation of loan

08

amount/outstanding balance under the above Car Loan account with re-
schedulement, as per the Car Loan Scheme applicable to public.

3. I agree that;

a) The Clause 7 of the Letter of Hypothecation be read and substituted as

under:

“That in case I fail to pay any three instalments (not necessarily consecutive)
or in the event of my ceasing to be in the service of the Bank for any reason
whatsoever, unless the Bank permits continuation of the facility at interest
rate as stated in clause 6 hereof, it shall be lawful for the Bank to recall by a
demand in writing the entire outstanding amount in account and I agree to
pay the same notwithstanding the period of instalments fixed as aforesaid.”

33
b) I confirm that the balance due in the above said term loan account is
Rs._______________ as on _____________ and acknowledge liability to repay the
same.

c) With effect from___________the interest shall be payable at the rate as

applicable to public, which is presently at-------% p.a.. with monthly
compounding or at such other rates and manner of charging the interest as
may be fixed by bank from time to time. Further, interest tax at the rate as in
force from time to time shall also be charged. In case the interest is not paid
by the borrower in its entirety, it will form part of the principal and carry
interest at the above mentioned rate. The interest payable by the borrower
shall be subject to changes in interest rates made by Reserve Bank of
India/Bank from time to time.

:30
d) In the event of default in repayment of instalments including interest,
the same may be recovered from my pension account/amount. (applicable only
in those cases where borrowing employee is drawing pension).

11
/20 107
4. I confirm that all other terms and conditions as already agreed to and
mentioned in the Letter of Hypothecation in respect of Car Loan as referred
above to continue be binding and remain in force. I further confirm that the
19
security viz. hypothecation (above referred to) given to the above Car Loan
/02 40

continues and remain in force.

5. This agreement is in addition and supplementary to Letter of

3

Hypothecation.

Yours faithfully,
08

(SIGNATURE)

Name: _____________________

Designation: _______________

BO :_______________________

Address: __________________

34