Sub: LIC Loans to State level Apex Cooperative Housing Federations.
The Life Insurance Corporation of India (LIC) vide their letter No.Inv/Proj.Fin/Apex dated 3rd July, 2009 has allocated an amount of Rs.125 crore to various State level Apex Cooperative Housing Federations (ACHFs) for the financial year 2009-10.
2. The interest rate structure and terms of loan for the year 2009-10 are as under:
|
Term of the Loan
|
|
Rate of Interest
|
|
15 years
|
|
9.75% p.a., payable half-hearly, with a rebate of 1% for prompt servicing.
|
|
10 years
|
|
9.25% p.a., payable half-yearly, with a rebate of 1% for prompt servicing.
|
|
Security
|
|
Floating Charge on the present and future assets of Apex Federation.
|
|
Additional Comfort
|
|
Default Escrow Account
|
|
Group Insurance
|
|
ACHFs to arrange for insurance cover on group basis with LIC on the lives of individuals and members of its primary societies in respect of out-standing indebtedness under housing loans from LIC.
|
3. ACHFs will have the option to choose the term of the loan. However, they shall have to take due care while granting loans to their members to avoid mismatch of duration of their assets and liabilities.
4. the individual loan limit for the year 2009-10 has been raised from Rs.7.00 lakh to Rs.10.00 lakh per member applicable for lending through primary societies or direct lending to members by ACHFs.
5. Loans sanctioned during 2009-10 shall be drawn by ACHFs latest by 31.3.2010. No extension of time limit will be allowed to avail the loan in the following financial year.
6. ACHFs should approach LIC for fresh loans at least six months prior to closure of financial year.
7. Concerned ACHFs to take immediate steps to complete long pending audit of their accounts and comply with the observations. Any non-compliance to the audit observation will have adverse bearing on sanction of fresh loans.
8. The long pending defaults of some ACHFs debar them from fresh borrowing from LIC, hence, they need to sort out chronic defaults.
9. A copy of LIC letter No.Inv/Proj.Fin/Apex dated 3rd July, 2009 along with enclosures is appended herewith for reference and record.
