the goan I network
PANAJI
There’s good news for ‘babus’ and other State government employees, including those of State-owned corporations and regular teachers of schools, colleges and government aided institutions.
They are now eligible to avail of personal loan of up to Rs 5 lakh from the State-owned Economic Development Corporation (EDC) at much lower interest rates of 11.5% compared to that offered by other commercial and nationalised banks. An official release said, EDC Limited has introduced the personal loan scheme for all permanent employees of the State and Central governments besides those of Corporations and PSUs, regular teachers and employees of schools, colleges and other government aided institutions.
Under the scheme personal loans will be provided to the extent of Rs 5 lakh with a fixed interest rate of 11.5 % per annum. A lumpsum deduction of a non-refundable 0.5% processing fee of the total loan amount and applicable GST however will be deducted at source, the EDC release said.
The loan will be secured by personal guarantees of the applicant and a guarantor who also has to be a government employee.
This is the first time that a ‘personal loan’ scheme for government and semi-government employees has been floated by EDC. Earlier, the Corporation had launched schemes only of housing and vehicle loans.
Meanwhile, EDC has also tweaked the vehicle loan scheme by increasing the upper limit to Rs 10 lakhs and for purchase of any vehicle.
The margin money for this scheme is 10% of the on-road cost of the vehicle and this loan too comes at a fixed interest rate of 11.5% per annum and a non-refundable processing fees of 0.5% of the loan amount.
The EDC release further adds that this vehicle loan will be secured by hypothecation of the vehicle along with personal guarantee of the applicant and a guarantor who is also a government employee.
