Docstoc

settlement loan

Document Sample
settlement loan Powered By Docstoc
					Residual Recovery Policy for settlement of loan accounts whose prime
             and collateral security have been sold out.


Eligibility:

Primary assets and collateral security should have been already sold
out/released by GSFC earlier.

Computation of Residual Recovery settlement amount:

i)     100% balance principal amount after adjustment of sale proceeds.

ii)    (a)     If sale of the primary security was made prior to 31-3-2000,, then
               30% of the outstanding amount of interest as on date of sale of
               prime security or 10% of outstanding amount of interest as on the
               last date of the previous financial year in relation to the date of
               settlement, whichever is lower.

       (b)     If sale of the primary security was made on or after 1-4-2000, then
               15% of the outstanding amount of interest as on date of sale of
               prime security or 10% of outstanding amount of interest as on the
               last date of the previous financial year in relation to the date of
               settlement, whichever is lower.

iii)   100% outstanding other expenses, legal charges, etc. to be recovered.

iv)    Outstanding penalty (paid or unpaid) be waived.


Operative Period:

The scheme shall be operative upto 30-9-2008.

Authority to decide the cases shall be the same as decided in the case of OTS –
2007 i.e. for loan disbursed upto Rs.15.00 lakh it will be Deputy General
Manager of respective Regional Office and for loan disbursed above Rs.15.00
lakh, it will be General Manager, Head Office.

Present policy circulated vide Circular No.GSFC/GM-I/O&M/23 dated 12-1-2004
which is prevailing in the Corporation comes to an end and the new Residual
Recovery Policy comes into force, as stated above, with immediate effect.