Personal Loan Scheme

PURPOSE OF LOAN:

To provide financial assistance for any legitimate and genuine personal expense, including any social / financial commitment as well as for acquiring new four wheeler/vehicle for personal use only and not for commercial purposes.

ELIGIBILITY:

All permanent employees of the Government of Goa/Central Government/Corporations/ Public Sector Undertakings, Regular teachers/employees of Schools, Colleges and other educational institutions aided by the Government of Goa/other Government Bodies and Undertakings.

Loan can be combined with that of Government Employee spouse.

Applicant should not be more than 55 years of age. In cases where the applicant is more than 55 years old, the age limit will be 58 years & the repayment schedule will be reduced.

The CIBIL Report of the applicant/guarantor should be satisfactory.

AREA OF OPERATION:

State of Goa.

QUANTUM OF LOAN: (w.e.f. 01/07/2022)

The maximum amount of loan shall be subject to the following limits:

• The minimum loan : Rs.1.00 lakh and multiples of Rs.10,000

• Minimum net salary of Rs.15,000 pm after deduction of EDC and other EMI’s and minimum 35% of Gross salary. The maximum loan amount is Rs.15.00 lakh.

MARGIN:

• For all (personal) loans upto Rs.15.00 lakh: Nil margin

• For all loans between Rs. 5.00 lakh to Rs.15.00 lakhs for purchase of new vehicles: 10% margin of the invoice value.

SECURITY FOR LOAN:

The loan shall be guaranteed by personal guarantee of the Applicant and a Guarantor (Govt. employee).

One Guarantor for loan up to Rs 5.00 lakh & Two Guarantors for loan above Rs. 5.00 lakh

In case of loan for vehicle between Rs.5.00 lakh to Rs.15.00 lakhs -Hypothecation of vehicle shall be done in favour of EDC.

PROCESSING FEES (NON REFUNDABLE):

0.5% of the loan amount (plus GST as applicable).

INTEREST RATE (w.e.f. 01/10/2023)

The interest rate of 10.50% p.a. (floating) shall be charged for all loans disbursed under Personal Loan Scheme.

LOAN REPAYMENT:

The loan is repayable in Equated Monthly Installment (EMI) from the date of disbursement as under:

Loan upto 5.00 Lakh maximum repayment period is 5 years (59 months).
Loan upto 10.00 Lakh maximum repayment period is 7 years i.e (83 months)
Loan above 10.00 Lakh maximum repayment period is 8 years i.e (95 months). One month moratorium is provided for the repayment of loan.

Total deductions including the deduction towards the proposed Loan not to exceed 65% of the Gross salary.

The deductions will have to be remitted by the parent department to the Corporation, every month, until closure of the loan account in full.

Prepayment charges: Prepayment charges at 1% of the amount of loan outstanding if closed before 2 years from the date of first disbursement of loan. After 2 years, no premature closure charges are applicable.

GENERAL:

The loan shall be disbursed after execution of legal documents and compliance of terms of sanction/disbursement formalities.

The loan proposal shall be considered on its own merit and mere compliance of the eligibility and other criteria may not entitle the applicant for sanction of loan.

The actual amount of loan sanctioned shall be decided by the Corporation and will be as per the norms and guidelines of the Corporation.

CHECKLIST OF DOCUMENTS REQUIRED FROM APPLICANT/GUARANTOR:

The loan assistance shall be considered subject to the Applicant (A)/ Guarantor (G) providing the following documents:

For loan to purchase vehicle: Quotation from reputed dealer.

Consent letter from the employer to deposit the EMI component from the salary of the applicant directly with the Corporation for the purpose of repayment of the term loan availed (as per format).

Bank account statement of last 3 months and copy of 1st page of passbook /One cancelled cheque(A).

Latest salary slip of guarantor.

Latest Salary Certificate (A) & latest Form 16 (A)

Identity proof – PAN Card & Aadhar Card of Spouse of the Applicant.

Address proof – Aadhaar Card (A & G).

Identity proof – PAN card (A & G).

Passport size photograph (A & G).

Any other documentary evidence as requested by the Corporation.

Frequently asked questions (FAQs)

What are my loan limits?

The minimum loan : Rs.1.00 lakh and multiples of Rs.10,000.00
Minimum net salary of Rs.15,000 pm after deduction of EDC and other EMI’s and minimum 35% of Gross salary. The maximum loan amount is Rs.15.00 lakh.

Can my spouse income be included for calculating the loan amount?

No, spouse income cannot be added for calculating loan amount.
However, if eligible, spouse may apply for another loan separately.

Who is eligible for the loan?

All permanent employees of the Government of Goa/Central Government/Corporations/ Public Sector Undertakings,Regular teachers /employees of Schools, Colleges & other educational institutions aided by the Government of Goa/other Government Bodies and Undertakings.
Applicant should not be more than 55 years of age.
In cases where the applicant is more than 55 years old, the maximum age allowed is 58 years and the repayment schedule will be reduced accordingly.
Total salary deductions including the deduction towards the proposed Loan should not to exceed 65% of the take-home salary.

What are the important documents that I need to provide?

Passport size photographs Applicant (A)and the Guarantors (G).
Identity proof – PAN card (A & G).
Address proof – Aadhar Card (A & G).
Identity Proof-PAN Card & Aadhar Card of Spouse of the Applicant.
Latest Salary Certificate (A)
Latest Form 16 (A)
Bank account statement of last 3 months
Copy of 1^st page of passbook (A)
One cancelled cheque(A).
Consent letter from the employer to deposit the EMI component from the salary of the applicant directly with the Corporation for the purpose of repayment of the term loan availed.
For purchase of vehicle: Quotation from reputed dealer.
Latest salary slips of the guarantors.

Do I have to pledge some form of security?

No security is required.
However the loan shall be guaranteed by personal guarantee of the Applicant and a Guarantor (Govt. employee).
One Guarantor for loan up to Rs.5.00 lakh & Two Guarantors for loan above Rs. 5.00 lakh
In case of loan for a vehicle -Hypothecation of vehicle in favour of EDC.

What is the repayment schedule like?

The maximum repayment period is of 5 years or remaining period of service (whichever is lower).

How is the repayment of EMI?

EMIs will be remitted by the parent department to EDC every month.

Can I pay the EMIs on my own or by post dated cheques?

However, you can pay on your own any extra amount over & above the monthly EMI.

What is the moratorium period?

One month moratorium is provided for the repayment of loan.

Will the interest be charged during the moratorium period of 1 month?

Yes.

Do you check the CIBIL score of the applicant?

The CIBIL Report of the applicant & guarantor should be satisfactory.

What is EMI?

EMI stands for Equated Monthly Instalments. This instalment comprises of both principal and interest components.

How much is the EMI for a loan of Rs.1 lakh over a 5 year loan period?

2,197.00 per month for 59 equated instalments.

Can I prepay the loan? Are there any penalties?

Prepayment charges at 1% of the amount of loan repaid if closed before 2 years from the date of first disbursement of loan.
After 2 years no premature closure charges are applicable.

What are the processing fee? Are there any other charges?

Processing fee is 0.5% of the Loan Amount + applicable GST (Non-refundable)
Applicant will also be liable to bear the actual expenses pertaining to Stamp duty as per State Stamp Act. There are no other hidden charges.

Do I have the option of choosing a fixed or floating rate for the loan?

The loan is provided at fixed rate of interest of 10.5% per annum.

How does EDC Personal loan compare with other banks?

There is total transparency with regard to the rate of interest & fees.
EDC offers personal loans at the competitive rates of interest, with no collateral security
EDC provides finance for all the personal needs or requirements, amount being determined on the basis of repaying capacity.
EDC charges interest on the basis of reducing balance, unlike the annual reducing balance method used by several other banks.

How do I benefit if the interest is calculated on a daily/monthly reducing balance?

On an annual reducing balance method, you will continue to pay interest on amounts you repay during the coming one year as the interest for the year is determined on the basis of the balance outstanding at the beginning of the year.
In the case of the daily/ monthly reducing balance, which is the methodology EDC adopts, your interest is calculated only on the outstanding loan amount, which reduces every time you pay off your EMIs or make any prepayments. This in fact reduces your effective rate of interest significantly.

What is the security margin?

For all (personal) loans upto Rs.15.00 lakh: Nil margin
For all loans between Rs.5.00 lakh to Rs.15.00 lakhs forpurchase of new vehicles: 10% margin of the invoice value.

What is the purpose of personal loan?

To provide financial assistance for any legitimate and genuine personal expense, including any social / financial commitments.
For acquiring new four wheeler/vehicle for personal use only & not for commercial purposes.

Download Scheme

Download Personal Loan Application Form