Loans

Our Society’s main motto is to provide financial help to the needy members at affordable interest rates and save them from the clutches of private financiers. At present there are 11 types of loans which can be availed by the members according to their need, duration of membership, and repaying capacity.

The type of loans are 1) Ordinary Loan 2) Emergency Loan 3) Gold Loan 4) Housing Loan 5) Property Loan 8)Loan against Deposits (FDs/SRDs) 9) Secured Loan
(10) SoftLoan (11) Swarna Kalpam (12) Vehicle Loan


ORDINARY LOAN

1. Members are eligible to apply for loans after 1 month of becoming a member & can stand as surety to loan- applicants (It may change from time to time).

2. Maximum credit limit (MCL) of a member is 10-50 times of his/her share value, or Rs. 10,00,000/-, or 10/12/15 times his/her total monthly emoluments (net Income) whichever is less.

3. For eligibility of Loans on the basis of duration of membership please refer last page or www.southernstar.org.

4. At the time of consideration of Loan application, the applicant (Loanee) should possess sufficient number of shares. i.e., for a loan of Rs. 50,000/- the applicant should possess a minimum number of 10 shares (Rs. 5,000/-). i.e. loan limit is 10 times the share value. If the number of shares is not sufficient, value of such number of shares will be deducted from the Loan amount granted.
5. Surety should also possess sufficient number of shares according to the Maximum Credit Limit (MCL). A member can avail loan upto 10-50 times of the share capital and can also stand as surety for loans up to 50 times. If a member is not availing the loan facility by self, he/she can stand as surety upto 50 times of the share value. Depending on the re- payment of instalments by the Principal Loanee, his surety liability will be reduced proportionately. Further he/ she can stand as surety for the remaining amount. Society will not disclose the surety eligibility of a member to another member, before signing the loan application form, whoever he/she may be (except in case of husband, wife & dependents). The concerned member should personally collect such details from the Society’s office. If the surety is not eligible with respect to the number of shares, it has to be increased at the time of disbursement of the Loan.

6. At the time of consideration of Loan, the applicant (Loanee) may clear the ordinary loan balance in his account, or it shall be deducted from the loan taken, provided 1% of the loan balance will be charged as ‘renewal fee’ with GST of 18%. This facility is allowed only to the members with excellent payment habit.

7. It is the discretion of the M.C. to sanction or reject a loan application. It may ask for additional sureties and collateral securities or it may reduce the loan amount applied for, whichever the M.C. finds suitable.

8. Loanee should visit the Society Office and complete all the formalities like signing the membership register, specimen signature card and preparation of Identity Card etc. (if not done already).

9. Completed application in all respects should reach the Society Office one day prior to the M.C. meeting. Preliminary checks will be held on the spot and the same will be entered in a separate register kept for this purpose, and serial number of the register will be communicated to the member. The deficiencies and/or further requirements, if any, found during the preliminary checks will be communicated to the member then and there. Please note that applications received on the day of the Committee meeting will not be considered in that meeting and it will be kept pending till the next meeting. Loans are issued to members on first-come-first-served basis (in case of waiting list).

10. Loan application will be scrutinized by the Loan committee in their meetings (normally on all Sundays). Issue of loans will be made only after it is passed by the Committee. At present, loans are issued on Sundays between 10.00 A.M. to 3.00 P.M. and on Wednesdays & Saturdays between 11.30 A.M. and 7.30 P.M. Loanee should be present himself/herself at the time of disbursement of loan. If any other formality is incomplete before the disbursement of the loan, it is to be complied before disbursement.

11. Concealment of facts, fraud in signature, etc. will lead to rejection of the loan application.

12. Proper Income certificate should be submitted along with the loan application, and the M.C. should be convinced of the re-payment capability of the member.

13. Members can avail loans up to 10 times their total monthly emoluments (Net Income) for loan up to Rs. 1,00,000/-; 12 times for loans between Rs.1,00,000/- to Rs. 3,00,000/-, and 15 times for loan above 3,00,000/-.

14. If the applicant is a Govt. employee, submit a latest salary certificate issued by the Pay & Accounts Officer of the Office/Department, where he/she is employed.

15. If the applicant is a married woman, husband should be an additional surety and at least three sureties should be male members.

16. If the applicant is an unmarried woman, then at least four sureties should be male members.

17. If the applicant is a permanent Govt. woman employee, clauses 15 & 16 above shall not be applicable, subject to the payment habit of the member concerned.

18. Payment habit and credibility of sureties will also carry weightage.

19. Only one surety from one house will be allowed on an application.

20. Residential address and employment of Loanee and sureties will be verified, especially in case of new members with less than 5 years of membership.

21. For members residing outside Delhi/NCR there will be no Ordinary Loan.

22. House-wives and self employed persons residing outside Delhi are not eligible for Ordinary Loan.

23. If one member is a surety to an unpaid debt/loan, neither his resignation from the society will be accepted nor the deposits adjusted. However, the surety’s liability can be transferred to another person subject to his eligibility and M.C.’s approval, the account can be closed/ adjusted.

24. Loans are not issued to persistent defaulters. Loanee and their sureties should clear off their dues to the Society before their application for loan and acceptance of their sureties are considered.

25. Notices shall be issued to the Loanee, sureties and employers on default of loan re-payment instalments. Arbitration cases are processed on default of 5 months or more. All expenses in connection with arbitration proceedings as well as preparation charges will be recovered from the loanees/sureties/employers.

26. After arbitration, the dues will be treated as Govt. dues and arrest warrant could be issued by the Delhi Govt. against the member/sureties and also could be remanded to Judicial custody (Tihar Jail) till recovery of the amount. Hence the members may give surety on their own risk. It is advised to give surety to well- known members with good payment habit only. M.C. is empowered to deduct all the dues of a defaulting member from the surety’s (guarantor) and their spouses’ and dependents’ accounts/deposits.

27. If a member is a surety to a defaulter, he/she and their spouse as well as dependents are not eligible to stand as another surety or avail loan facility themselves.

28. Rate of interest on Loan is now 10% P.A. (Subject to change from time to time) reducing half monthly (Fortnightly reducing). If instalment is not paid by 15th of the month, 3% additional (penal) interest will be charged on the entire outstanding loan amount. Interest is charged in advance half monthly. i.e., a member availing loan between 1st and 15th of a month will have to pay one and half month’s interest in the next month on or before 15th. But members availing loan between 16th and 31st of a particular month will have to pay one month’s interest in the following month on or before 15th.

29. Loans are repayable in monthly instalments given separately.

30. Loan instalments can be paid in advance too. In that case, the member saves the interest, and the loan period will get reduced. Default in Loan repayment instalments will affect future loan applications and hence the members may default at their own risk.

31. Members can deposit post-dated cheques with the society and it will be presented to the Bank every month regularly. Payments are also accepted through Net-Banking/NEFT/RTGS/IMPS.

32. Documents to be attached with the loan application: Besides completing the application form, a member must also ensure that the following documents are supplied with his/her application.

a) Income (salary) certificate recently issued by the employer as per the proforma (for salaried employees other than Govt./ Undertaking/ Ltd. Company employees).

b) Salary Slip (computerized) recently issued by the employer duly signed and sealed (for Govt./ Undertaking/ Ltd. company employees).

c) For self-employed persons, affidavit (as per proforma supplied by the Society) showing income and detail of business with address bank statement (for loan less than 1,00,000/- and without property mortgage).

d) For self-employed, last 3 years’ audited balance sheet with Tax deposit proof (for loan above 1,00,000/-, and without property mortgage).

e) For self-employed, affidavit showing income and detail of business with address and bank statement for two years (For loan up to Rs. 10,00,000/- in case of loan against property mortgage).

f) For housewives, income certificate of their husband, along with an undertaking from the husband.

g) Bank passbook/statement copy for last one year (for all cases).

h) Proof of permanent address, if not submitted earlier. (SSLC/Passport/ Aadhaar Card/Birth Certificate/ Property documents/Voter ID Card/Ration Card- issued by competent authority from Kerala). Proof of latest local address for all cases. (PAN card/Voter ID Card/ Passport/Aadhaar Card/Driving License/LIC policy/ Telephone Bill/ Electricity Bill etc) – KYC compliance.

i) Recent passport-size photograph, if not submitted earlier.

ORDINARY LOAN LIMIT

After Completion of

Amount in Rs.

For Govt. Employees

1 Month

25,000

2,25,000

3 Months

50,000

2,50,000

1 Year

1,50,000

3,50,000

2 Years

2,00,000

4,00,000

3 Years

3,00,000

5,00,000

4 Years

4,00,000

5,00,000

5 Years

5,00,000

5,00,000

Note: For loan amount above Rs. 2,00,000/- Share money and CD should Rs 20,000/- + Loan Linked Deposit (LLD). LLD will be 10% of loan amount above Rs 2 lakhs and is refunded or adjusted with the last loan instalment/s.

HOUSING LOAN (Purchase of House/Flat)

Society may issue loan to its members to own a roof over their heads, if they do not have one at-present, and if they are able to make the instalment payments promptly.

Important Note:

1. members are eligible even for purchase of a House/ Flat on General Power of Attorney (GPA/POA).

2. House/flat should not have any other liability. i.e., it should have been acquired on cash-down basis or completed all the instalments. No-dues certificate from the allotment authority is required.

3. Even before identifying a suitable house/flat, the application can be submitted.

4. All original documents/files are to be deposited with the Society and the Society will keep the same in its safe custody till the clearance of all dues towards the Society.

5. Application should be accompanied with a payment of Rs. 500/- (non-refundable) as processing fee.

6. On sanctioning of loan, a one-time service charge (Administration charges: non-refundable) @ 2% of the amount sanctioned, subject to a minimum of Rs. 5,000/- is to be deposited by the Loanee with the Society.

Eligibility Conditions

1. Applicant should be a member of the Society and should have completed at least one year. Loan will be issued jointly to the Husband and Wife (if married.)

2. His/her payment habit should be excellent/very good.

3. He/she must be in service or engaged in any profession or business with regular income.

4. Maximum loan limit will be Rs. 25 lacs or 80% of the cost of the housing unit to be financed as per the agreement to sell or 36 months’ net salary (take- home salary) whichever is less.

5. The actual loan amount will be determined on the basis of repayment capacity. Repayment capacity takes into account the factors such as income, age, qualification, number of dependents, spouse’s income, assets, liabilities, stability and continuity of occupation and savings habit and the rent being paid by the Member at the time of application, if living in a rented accommodation.

6. The House/Flat should be within the jurisdiction of Delhi only.


Other Conditions

1. LOAN APPLICATION

An application for loan may be submitted to the Society’s office in the prescribed forms (available in the office) along with all supporting documents.

2. LOAN REPAYMENT PERIOD

Repayment period normally is up to 10 years but not beyond the age of 60 years of the member. Repayment by way of EMI commences from the following month in which the last instalment of the loan is disbursed by the Society. Until the loan is fully disbursed, pre-EMI interest is payable only on the loan availed as on the last day of every month. Loanee has to submit sufficient number of post- dated cheques (PDCs). Repayment of loan ahead of schedule will be accepted without any charges/ penalty. However, for late payment 3% additional interest on the loan outstanding will be charged till the over-dues are cleared.

3. SECURITY OF LOAN

Security of loan is first mortgage of the housing unit to be financed. In addition, 1-2 permanent Govt. employees ( members of the Society) should guarantee as surety for the loan. A special power of attorney is to be executed by the Loanee in favour of the Society.

4. DISBURSEMENT OF LOAN

The loan will be disbursed after a full technical appraisal is made and on completion of all legal documentation and after investment of the applicant’s own contribution in full. Applicant’s own contribution is the total cost of the housing unit less the loan from the Society. After execution of all the legal documents at the Registrar’s Office, loan amount will be handed-over to the seller on behalf of the Loanee (purchaser) by way of pay order/demand draft. For construction, the loan will be disbursed in full or in suitable instalments taking into account the requirements of funds and progress of the construction. Inspection will be made by the Society’s staff or management from time to time to ensure proper utilization of the funds.

5. INSURANCE

In addition, Loanee has to insure the house/flat at his/her own cost for the loan period or the Society will do it on his/her behalf and the charges will be debited to the member concerned.

EMERGENCY LOAN

The President, Secretary and Treasurer of the Society have the power to grant emergency loans upto Rs. 80,000/- or 3/4 of CD/Share Money of the applicant whichever is less, which shall be refunded within 10/15/20 months together with 10% interest per annum (Subject to change from time to time).


GOLD LOAN

1. Loan against Gold ornaments are to be refunded within 12 months. Interest is charged on half monthly basis payable monthly on or before 15th every month.

2. Gold loan upto rs 19500/- is available for interest rate @6% per annum for 6 Months. And For 1 year No limit @ 10% per annum

3. Main attraction of the scheme is that the Principal amount can also be deposited in convenient instalments, and interest will be charged on the balance of the Loan only (half-monthly rest basis, No flat rate). If the loan + interest is not deposited on completion of 12 months, the ornaments will be put on auction and deficit if any, will be recovered from the member concerned.


INTEREST FREE SOFT LOAN

The Society may issue interest free Soft loans. Minimum loan amount Rs 10,000/- and Maximum Amount Rs 2,00,000/-.(Two Lakhs) No Sureties Required, No Interest for timely repayment. Only One time administrative charges will be applicable. For More details Contact Society 011-44424444 extn 104


VEHICLE LOAN

1. Society may give loan for purchase of new vehicles upto Rs. 5,00,000/- (Five Lakhs) or 80% of the value of the Vehicle, whichever is less, to those members, who have completed 2 years of membership and whose payment habit is excellent, against 2 sureties. At least one Surety should be a Govt./undertaking employee and a member of the Society.

2. Loanee has to insure the vehicle (comprehensive) at his/her own cost from time to time or the Society will do it on his/her behalf and the charges will be debited to the member concerned. If the loanee himself/herself insures the vehicle, liability to the Society is to be mentioned on the policy and a copy of the policy bond has to be submitted to the Society as soon as possible.

PROPERTY LOAN (Loan against existing property on Mortgage):

1. Maximum loan limit will be 20 lacs or 50% of the market price of the housing unit to be financed or 36 months’ net salary (take-home salary) whichever is less.

2. All other conditions of Housing loan will be applicable to the property loan.

LOAN AGAINST DEPOSITS (FDs & SRDs).

Loans are available against FDs/SRDs in the Society upto 90% of the amount deposited @ inerest + 2%. It can be availed at any time without any notice.

SECURED LOAN

We have expanded the scope of secured loans for property owners. If anybody needs a loan above Rs 5 lakhs and upto Rs 10 lakhs and is having a property in his/her/spouse’s name, he/she can avail this loan without Govt. Employees surety but with 4-5 normal sureties (all members).

SECURED LOAN (Against Property Documents)

After completion of

Amount in Rs.

CD Should be

Share Money

1 Year

5,50,000

35,000

20,000

2 Years

6,00,000

40,000

20,000

3 Years

7,00,000

50,000

20,000

4 Years

8,00,000

60,000

20,000

5 Years and below 8 years

9,00,000

70,000

20,000

8 Years and above

10,00,000

80,000

20,000