115/291

24.02.2022
115/291

24.02.2022
Bank of India Staff Vehicle Loan -2022

BANK OF INDIA

STAFF VEHICLE LOAN

2022

118
Bank of India Staff Vehicle Loan -2022

1. INTRODUCTION

1.1 Staff Vehicle Loan (SVL) is granted by the Bank, at its sole discretion, to the
eligible staff employees of the Bank for purchase of two — wheeler and four —
wheeler vehicles on such terms and conditions as the Board may approve
having regard to the guidelines issued by the Government of India from time to
time.

1.2 The SVL Scheme was last revised by the Board on 16.01.2016 removing the
loan ceiling fixed for the purchase of two- wheeler, which was conveyed vide
Branch Circular No.109/212 dated 12.02.2016. Since then, many clarifications
on several aspects of the subject have been issued from time to time.

1.3 With a view to consolidate and update the framework of rules/ regulations and
all the current instructions on the subject in one place, we put forth the rules of
the SVL for staff employees.

14 The benefit of this revised SVL Scheme will be applicable from the date of
approval by the Board.

2. PURPOSE OF SVL

2.1 SVL will be granted to employees of the Bank individually for purchasing Two/
Four- Wheeler vehicles for the bonafide use of the employee and his/her family.
SVL can be availed of by an employee for the following purposes:

2.1.1 For purchase of new two- wheeler/ four- wheeler vehicles.

2.1.2 For purchase of used/ second hand two- wheeler/ four- wheeler
vehicles- Age of the proposed vehicle not to exceed 5 years.

2.1.3 For purchase of light personal vehicles not requiring heavy duty driving
license viz; Jeeps, Vans etc.

2.1.4 Vehicles (Two and Four- wheeler) powered by non-conventional

sources of energy, such as Battery operated Electric Vehicle/
Conventional Hybrid Electric Vehicle and Plug in Hybrid Electric Vehicle.
2.1.5 Reimbursement of cost of four wheeler vehicle purchased from own
sources, subject to.
Purchase of New Four Wheeler Vehicle.
ii. Purchased Vehicle should not be more than 3 months old;
iii. Purchase should be through Cheque/ Card/ Electronic mode only;
iv. Obtention of original receipts, invoice, vehicle details and original
RC Book (RC Book may be returned after due verification and
retaining self-attested copy for Bank's records);
v. It`shall be ensured that the vehicle has not met with any accident
during the interim period.

2 18
Bank of India Staff Vehicle Loan -2022

vi. Verification of payment from the account of the proponent and

verification with the dealer about receipt of payment and
confirmation that the transaction is not cancelled to be obtained
from the dealer and kept on Bank's records.

3. ELIGIBILITY AND QUANTUM OF LOAN:

3.1
Officer Staff Award Staff
Eligibility Confirmed employees with 2 years of continuous service.
Criteria
Quantum 1 For purchase of new/ used 2/4 wheeler running on conventional
of Loan source of energy and 2 wheeler running on non-conventional
source of energy:

90% of cost of vehicle or 90% of cost of vehicle or

Rs.15 lakhs, whichever is less Rs.10 lakhs, whichever is less

2 For purchase of 4 Wheelers which are Battery- operated Electric

Vehicle/Conventional Hybrid Electric Vehicle and Plug in Hybrid
Electric Vehicle:

95% of cost of vehicle or 95% of cost of vehicle or

Rs.18 lakhs; whichever is less Rs.12 lakhs; whichever is less

3.2 SVL shall be extended to such probationers who have completed 2 years of
continuous service but whose services have not been confirmed due to
reasons such as non- receipt of Police Verification Report/ Caste Certificate
or any other requisite document from concerned Government authority(ies),
as per their entitlement and if otherwise found eligible.
3.3 Staff members are eligible to purchase vehicles (Two no.s of 2-wheeler and
two no.s of 4- wheeler vehicles) without any individual ceiling within the above
fixed quantum of loan mentioned in point 1 under para 3.1. Staff Officers and
Award Staff members may avail enhanced limits of Rs.18 lakhs and Rs.12
lakhs respectively as per criteria mentioned in point 2 under para 3.1 only.
3.4 Employees are allowed to avail loans for both Four - wheeler and Two-wheeler
simultaneously/ separately to the extent of the overall limit.
3.5 Period of 4 years should lapse for availment of second/ subsequent loan for
same type/ category of vehicle i.e. one two- wheeler to next two-wheeler loan
and one four wheeler loan to next four-wheeler loan separately.
4. MARGIN:

In case of New Vehicle :

Minimum 10% on 'On Road Price' uniformly for all limits. Margin
includes Showroom cost of the vehicle, Road Tax, Insurance and
Registrations excluding cost of accessories.
es,4,84,, 3J
e 8

:Vita'4"crti
Bank of India Staff Vehicle Loan -2022

4.2 In case of Second hand vehicles :

Minimum 10% margin on depreciated value or value as assessed by a
Government authorised valuer or sale consideration whichever is
lower.
43 In case of Vehicles running on Non - Conventional sources of Energy :
Minimum 5% margin on 'On Road Price'. Margin includes Showroom
cost of the vehicle (inclusive of any Central/ State Government
Subsidy), Road Tax, Insurance and Registrations but excluding cost
of accessories.

5. RATE OF INTEREST;
5.1 5.50% (Simple) for all Limits

5.2 Additional 0.10% concession to be given for purchase of Electric Vehicles

6. DISBURSEMENT

6.1 Disbursement of SVL shall be made directly to the supplier/ dealer/ vendor of
the vehicle and staff should acquire the vehicle maximum within one month
from the disbursement of advance.
6.2 Before disbursement of the loan, it should be ensured that there is no
disciplinary action / legal proceedings initiated/ pending against the applicant
employee (in case of minor misconduct, the sanctioning authority may, at its
discretion, waive this condition for disbursement of loan).
6.3 In case of reimbursement, disbursement shall be made directly to OD/ Salary
account of the employee against valid proofs of payment to the dealer.
7. INSURANCE:
It is obligatory on the part of the staff member to take full comprehensive
insurance cover of the vehicle every year with Bank Clause during the tenure
of the loan. The charges towards the said insurance cover will have to be
borne by the concerned staff member.
8. REPAYMENT
8.1 Loan together with interest thereon, shall be repayable in not more than 200
monthly instalments, in case of a four wheeler and in not more than 84 monthly
instalments in case of loan for the purchase of a two- wheeler and second-
hand vehicle. The recovery of the loan will be effected in the following manner:
8.1.1 The principal and interest amount of loan for purchase of four - wheeler
shall be repayable in 200 monthly instalments to be recovered in the
proportion of 3:2. In other words, the principal loan amount will be first
recovered in 120 months and interest accrued thereon will be recovered
thereafter in the next 80 months.
8.1.2 The principal and interest amount of loan for purchase of two - wheeler
shall be repayable in 84 monthly instalments to be recovered in the
proportion of 5:1. In other words, the principal loan amount will be first
recovered,in 70 months and interest accrued thereon will be recovered
thereafter in the next 14 monthS.
4j 8
Bank of India Staff Vehicle Loan -2022

8.1.3 The principal and interest amount of loan for purchase of second-hand
vehicle is repayable in 84 monthly instalments to be recovered in the
proportion of 5:1. In other words, the principal loan amount will be first
recovered in 70 months and interest accrued thereon will be recovered
thereafter in the next 14 months.

8.2 Instalments towards the recovery of loan shall be adjusted first for recovery
of principal amount. Upon repayment of full principal amount, the account
should be rephased for deduction of the interest amount.
8.3 Interest is to be charged from the date of first disbursement. The amount of
interest will be calculated on the balance outstanding on the last day of each
month and shall be charged/ debited on a monthly basis,
8.4 The facility of repayment upto the age of 65 years WILL NOT be available to
an employee who opts for Resignation/ VRS from Bank's services or are
dismissed/ compulsorily retired/ removed from service before attaining the age
of superannuation and they have to liquidate the entire SVL outstanding at the
time of their resignation/ VRS/ removal/ dismissal/ compulsory retirement,
failing which the outstanding amount of the loan together with interest thereon
shall be charged interest as applicable to general public as decided by the
Bank from time to time from the date he/ she has ceased to be in the service
of the Bank till its repayment in full. However, the outstanding SVL in case of
employees who resign/ opt for VRS from the Bank may be considered for being
taken over into Star Vehicle Loan by the competent authority, on a case to
case basis as per the eligibility and terms & conditions of Star Vehicle Loan
Scheme.
8.5 Voluntary Retirement under clause 30 of Chapter V of Bank of India Pension
Regulations, 1995, arising out of incapacitation as certified by Bank's panel
Doctor, will, however, be permitted to continue SVL upto 65 years of age as
per the terms of review sanction in such case.
9. SECURITY

9.1 Principal Security - Hypothecation of assets purchased out of Banks finance

& charge to be registered with RTO and registered as Personal vehicles.
9.2 Comprehensive Insurance of the vehicle with Bank Clause.
10. PERMISSION FOR SALE OF VEHICLE AVAILED FROM SVL:

10.1 The staff members are allowed to sell the vehicle purchased by availing Staff
Vehicle Loan during the repayment period of the said Vehicle Loan only with
prior written permission of the sanctioning/competent authority.
11. SANCTIONING AUTHORITY:
11.1 Sanctioning Authority under the Scheme(for both New & second hand
vehicles) shall be the SZLCC of the Zone under whose jurisdiction the salary
paying branch,\of the concerned staff 'member is located.
2 In respect of staff working at LCBs and NBGs, the loan would be sanctioned
by the SZLCC bf the Zone under_ whose geographical jurisdiction the
concerned LCB/ NBG is located.
41 , 4„.
"
1
 Bank of India Staff Vehicle Loan -2022

12. TRANSFER OF VEHICLE LOAN ACCOUNT:

12.1 Vehicle Loan Account shall not be permitted to be transferred from one Branch
to another.
13. LOAN FOR REPAIRS:
13.1 No staff vehicle loan shall be granted hereinafter for the purpose of repair of
vehicle. However, existing staff vehicle loans for repairs shall continue as per
the terms of sanction.
14. LOAN TO PROBATIONARY STAFF EMPLOYEES:
14.1 Employees on probation shall be eligible to avail SVL for the purchase of a
two - wheeler from the date of their joining subject to the following conditions:
14.1.1 Quantum of Loan shall be linked with the Security deposit of the
• probationer kept with the Bank. For e.g. Staff Clerk has deposited
Security deposit of Rs.30,000/- on the day of joining the Bank,
accordingly, he/ she shall be eligible to avail SVL for the purchase of
two-wheeler to the extent of Rs.30.000/-. Any amount in excess may
availed under Star Vehicle Loan.

14.1.2 Security for Vehicle Loan extended to probationary staff shall be

hypothecation of vehicle in favour of the Bank alongwith pledge of
Security Deposit till repayment of vehicle loan.
15. REPAYMENT TENURE IN CASE STAFF VEHICLE LOAN IS EXTENDED
BEYOND RETIREMENT DATE :
15.1 Employees are permitted to avail SVL with repayment period beyond the age
of retirement. An employee has to avail this loan before the date of his/ her
superannuation with repayment period upto the age of 65 years or the
repayment period as stipulated for the respective two wheeler/ four wheeler
loan, whichever is earlier. Retiring staff should submit their Vehicle Loan
applications preferably 30 days prior to their retirement. No request for
granting SVL shall be entertained after the date of retirement.
15.2 Sanctioning authority while sanctioning the loans with repayment beyond the
age of retirement, should be satisfied with regard to the income (pension,
regular income from other sources etc.) of the concerned staff employee.
15.3 The modalities of repayment of balance outstanding amount, if any, in SVL,
upon completion of 65 years of age of an employee who continues their SVL
after superannuation, will be as under:
15.3.1 The excess amount, if any, be recovered at the time of superannuation
itself; or
15.3.2 The staff member may offer FDRI liquid securities acceptable to the Bank
towards liquidating the balance amount at the end of 65 years of age; or
15.3.3 In case after review of SVL till 65 years of age of the retiree applicant,
there is an excess amount (keeping in mind that the total deductions
should not exceed the limit of 613%)' such excess amount should be paid
off by the retiree from his/ her terminal benefits immediately upon
I co retirement.
6 18
Bank of India Staff Vehicle Loan -2022

15 4 If the employee ceases to be in Bank's services, after availing the SVL with
repayment tenure beyond the superannuation age, due to resignation or due
to removal/ CRS/ Dismissal or any other reason, he/ she will not be allowed to
continue the SVL and will have to adjust the entire loan.
16. GENERAL GUIDELINES:

16.1 The vehicle purchased out of SVL will be hypothecated to the Bank and will
be registered with Regional Transport Office to that effect, till the loan amount
is repaid in full with interest.
16.2 In case of Battery operated Electric Vehicle/ Conventional Hybrid electric
Vehicle and Plug in Hybrid electric vehicle, Green colored License Plate with
white letters for Individual use purpose is mandatory.

16.3 Within the overall limit extended for purchase of Battery operated Electric
Vehicle/ Conventional Hybrid electric Vehicle and Plug in Hybrid electric
vehicle, infrastructure cost for setting-up of a D.C. charging port required for a
Battery operated Electric Vehicle may be considered by the Sanctioning
authority.
16.4 Before consideration of an application for purchase of same type/ category of
vehicle for second time, the loan taken earlier, together with interest thereon
should be fully liquidated.
16.5 Where an employee sells his vehicle purchased with Bank's loan and applies
for a fresh loan for purchase of another vehicle of the same type/ category,
apart from fully liquidating the old loan, the surplus sale proceeds must be
applied towards purchase of the new vehicle.
16.6 If an employee repays the conveyance loan granted to him in the normal
course and then applies for a fresh loan for another vehicle of the same type/
category, it will not be necessary for him to utilize sale proceeds of the earlier
vehicle.
16.7 The amount of fresh loan will be restricted to ceiling provided for in the scheme
for grant of loan for vehicle or the estimated cost of the vehicle, whichever is
lower, subject to further adjustment of sale proceeds of the earlier vehicle,
wherever applicable. However, requisite margin is to be ensured.
16.8 No employee of the Bank will be allowed any concessional loan if the total
deductions, of any nature from the salary exceeds or is likely to exceed 65%
(excluding instalment towards Loan availed under 'Scheme for extending
financial assistance to the staff members who have suffered loss on account
of natural calamities') and resultant take- home pay is reduced to less than
35% of the total emoluments including the loan proposed to be sanctioned
under this scheme in case of serving staff and 40% after retirement at the time
of review of SHL, till the currency of the loan.

16.9 Promotee officers shall be entitled for SVL as applicable to Officers' cadre
upon their confirmation in Officers' cadre.

f I

7j8
T •• :\ *4/-II
Bank of India Staff Vehicle Loan -2022

16,10 Award staff members who joined the Bank prior to 18.09.1989 shall continue
to be entitled to interest-free Vehicle Loan upto an amount of Rs.25,000/-, as
until now.

16.11 Sale/ Purchase of second-hand vehicles between relatives of staff members

are not allowed. The scope of the term 'relative' shall be as defined under
Section 6 of Companies Act, 2013 (Annexure — I).

16.12 If the loan amount is misutilized or if it is found that the amount of sale
proceeds of the vehicle is misrepresented/ misappropriated or not deposited
with the Bank within the prescribed time as determined by the Sanctioning
Authority or any rule regarding grant of such loan is violated, the employee
concerned shall be liable for appropriate disciplinary action. Besides this, the
Bank shall have right to charge commercial rate of interest on the amount
outstanding in the loan account.

16.13 Branch/ Office/ Zone where the SVL account is being maintained should
ensure that the EMIs are being serviced regularly and the account is in order.
It will be the responsibility of the staff to ensure that the account does not slip
to SMA/ NPA category during the currency of SVL.

16.14 The General Manager (HR) shall issue necessary clarification, explanation or
administrative guidelines for implementation of this Scheme.

16.15 The SVL Scheme shall be reviewed annually.

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

Cry - i

8
 Annexure I

Definition of "relative" as given in Section 6 of Companies Act, 2013.

A person shall be deemed to be a relative of another, if, and only if:

(a) they are members of a Hindu undivided family ; or
(b) they are husband and wife ; or
(c) the one is related to the other in the manner indicated as under
1. Father.
2. Mother (including step-mother).
3. Son (including stepson).
4. Son's wife.
5. Daughter (including step-daughter).
6. Father's father.
7. Father's mother.
8. Mother's mother.
9. Mother's father.
10. Son's son.
11. Son's son's wife.
12. Son's daughter.
13. Son's daughter's husband.
14. Daughter's husband.
15. Daughter's son.
16. Daughter's son's wife.
17. Daughter's daughter.
18. Daughter's daughters husband.
19. Brother (including step-brother).
20. Brother's wife.
21. Sister (including step-sister).
22. Sister's husband.