AIKBEA & KBOO Cir 9-2022

ALL INDIA KARNATAKA BANK EMPLOYEES’ ASSOCIATION (REGD.
)
(Affiliated to A.I.B.E.A.)
AND
KARNATAKA BANK OFFICERS’ ORGANISATION (REGD.)
(Affiliated to A.I.B.O.A.)
Circular Letter No. 09/2022 READ AND CIRCULATE 17.10.2022

Dear Members,
STAFF HOUSING LOANS LIMIT AND CLEAN LOAN LIMIT STANDS ENHANCED!
REALISE YOUR DESIRE TO OWN A HAPPY HOME AT YOUR PLACE OF CHOICE!
A DIWALI BONANZA – CONGRATULATIONS!
*****
Members were already informed vide our Joint Circular No. 08/2022 dated 30-07-2022 about our
demands placed with the Management for enhancement of LIMIT UNDER STAFF HOUSING LOAN,
ADDITIONAL HOUSING LOAN, 2nd HOUSING LOAN AND CLEAN LOAN SCHEMES for Officers
and Award staffs. In response to our demands, the Management invited us for a joint discussion
vide their letter no. HO.HR&IR/AIKBEA & KBOO/1696/2022-23 dated 13-09-2022 in the matter on
15-09-2022 at Head Office.
Accordingly a joint discussion took place on 15-09-2022 and supplementary discussions also
took place subsequently in the matter. The Management while initiating the negotiation offered
an increase in the quantum of loan by 50% of existing housing loan limits. While disagreeing for
the same, we reiterated that our demand for increase in quantum was reasonable and practical
considering the steep increase in the land and construction cost. The issue was further deliberated
and pursued by us convincingly. In response, the Management has agreed for increase in staff
housing loan limits as demanded by us.
Thereafter, we have taken up the issue of reduction in rate of interest (ROI). Here we urged the
Management that the existing slab of 5% simple interest of Rs.3.10 lakh and Rs.3.70 lakh for
Officers and Award staffs respectively should be enhanced further and reduction in rate of interest
in higher slab substantially. The Management has informed us that in view of the current trend of
increasing ROI, they are not in favour of reduction in ROI and proposed for floating ROI. While
rejecting the proposal of floating rate offered by the Management, we argued that the cost of fund
of the bank has substantially reduced since last settlement and the benefits of the same have to
be passed on to staff members in the existing fixed rate concept. We urged the Management to
increase the existing slab of 5% simple interest to Rs.13 lakh for the staff members and ROI on
subsequent slab from existing 7.50% simple to at least 6.50% simple. The Management has agreed
to increase the 5% interest slab to Rs.10 lakh. We further pursued the matter with our arguments
for reduction in the ROI in the higher slab. At this juncture, the Management has offered 7.14%
and stuck to their stand. We continued our efforts by arguing that staff members cannot be denied
the benefits of lower cost of funds of the Bank. After much discussion, finally, the Management
has agreed to reduce the interest to 7.00% interest for the limit above Rs.10 lakh. Comrades, this
reduction of interest by 0.50% in higher slab and increase in limit of 5% simple interest slab results
in a substantial reduction of interest amount of Rs.57,250/-, Rs.37,750/- and Rs.29,250/- per year
for Officers, Clerks and Sub-Staffs respectively.
1
Further, we demanded for extending staff housing loan facility to our Part Time Sweepers also.
Initially, the Management not responded positively. After much persuasion in the matter, finally,
the Management has agreed to extend the facility to Part Time Sweepers for the first time
in the Bank.
Further, after much discussion, the repayment period of staff housing loans also been
extended for the first time till the age of 70 years or 360 months whichever is less as
proposed by us.
We are also happy to inform you that we have succeeded in bringing many improvements in
other parameters in the housing loan schemes for the benefits of Officers and Award staffs.
An understanding in the matter has been arrived at and MOUs have been signed on 13-10-2022.
The improvements made in the schemes are briefly mentioned here below:
1. STAFF HOUSING LOAN
v Loan Limit
Officers Clerks Sub-staff PTS/PTSS *
Rs. 90 Lakh Rs. 54 Lakh Rs. 37 Lakh Pro-rata basis of Sub-Staff limit
( as per their scale of pay)
* The staff housing loan facility is now extended also to PTS/PTSS members on pro-rata
basis.
v Rate of Interest
(i) Up to Rs. 10,00,000/- : 5.00% p. a. (Simple)
(ii) Above Rs. 10,00,000/- : 7.00% p. a. (Simple)
The reduced rate of interest for the existing housing loans will be effective from 01-10-2022.
v Repayment Period:
360 months (Principal 270 months and Interest 90 month - 3:1 Ratio)
Repayment period may be extended on request till the age of 70 years or 360 months
whichever is less.
v Holiday period:
• Maximum 24 months for construction of house/flat
• Maximum 3 months for purchase of ready built house/flat.
v Maximum loan amount for purchase of site is increased to 50% of the loan limit or 90% of
the site purchase cost, whichever is lower.
v Staff members are now eligible to avail loan even if site is in the name of his / her spouse,
parents or jointly held with them.
v Staff members are now eligible to purchase and register the house property jointly with his
or her spouse.
v The above revisions shall come into effect from 18.10.2022.
2. STAFF ADDITIONAL HOUSING LOAN
➢ Loan Limit
Officers Clerks Sub-staff
Rs. 30 Lakh Rs. 20 Lakh Rs. 13 Lakh
➢ Rate of Interest : 7.00% p. a. (Simple)
The reduced rate of interest for the existing housing loans will be effective from 01-10-2022.
2
➢ Repayment Period:
whichever is less.
➢ Now, staff members are made eligible to avail additional housing loan facility 2 times (within
the limit) in their entire service.
➢ Now, staff members who have availed 2nd Housing loan are made eligible to avail additional
housing loan facility once in their entire service.
➢ Now, the staff members who have availed loan under KBL Home Comfort scheme, are
also eligible to avail this facility for the purpose of clearing the same.
➢ The above revisions shall come into effect from 18.10.2022.
3. STAFF SECOND HOUSING LOAN
a Loan Limit
Category Limit
Officers, The quantum of 2 Housing loan shall be the difference between
nd
Clerks and the revised staff housing loan limit of Rs.90.00 Lakh, Rs.54.00 lakhs
Sub-staffs and Rs.37.00 lakhs for Officers, Clerks and Sub-staff respectively and
the limit already availed by the incumbent under the previous housing
loan scheme including the amount availed under additional housing
loan scheme (if any)
a Rate of Interest: 7.00% p. a. (Simple)
The revised rate of interest for the existing housing loans will be effective from
01-10-2022.
a Repayment Period:
whichever is less.
a Holiday period:
• Maximum 24 months for construction of house/flat
• Maximum 3 months for purchase of ready built house/flat.
a Maximum loan amount for purchase of site is increased to 50% of the loan limit or 90% of
the site purchase cost, whichever is lower.
a Staff members are now eligible to avail loan even if site is in the name of his / her spouse,
parents or jointly held with them.
a Staff members are now eligible to purchase and register the house property jointly with his
or her spouse.
a The above revisions shall come into effect from 18.10.2022.
4. STAFF CLEAN LOAN
l Loan Limit
Category Limit
Officers Eligibility:
a) Confirmed service: Rs. 3,00,000/- *
b] After completion of 5 years’ of service including probationary
period will be eligible for an additional loan of Rs.4,50,000/-
(Total Rs.3,00,000/- + Rs.4,50,000/- = Rs.7,50,000/-)
3
Clerks Eligibility:
a) Confirmed service: Rs.2,00,000/- *
(Total Rs.2,00,000/- + Rs.3,40,000/- = Rs.5,40,000/-)
Sub-Staff Eligibility:
a) Confirmed service: Rs.1,30,000/- *
(Total Rs.1,30,000/- + Rs.1,70,000/- = Rs.3,00,000/-)
For PTS/PTSS Eligibility:
On pro-rata basis of sub-staff limit
* Now, the staff members can avail the clean loan facility on confirmation
l Rate of Interest: 7.50% p. a.
l Repayment Period:
The loan shall be repayable in 144 Equal Monthly Installments along with monthly interest.
If the remaining service is less than the maximum period (144 months), the installment
shall be calculated for the full period (144 months) and the outstanding balance at the
time of retirement shall be recovered out of terminal benefits.
l The above revisions shall come into effect from 18.10.2022.
Comrades, the joint discussions were held in a cordial atmosphere and we go on record to
appreciate the positive approach adopted by the Management throughout the discussions
and finally we could arrived at an amicable settlement with lot of improvements in the above
schemes.
We are confident that our members at all levels will be very happy to enjoy and reap the
benefits of this wonderful settlement. We are also sure that these benefits will further enthuse
and motivate all our members to work hard and contribute to the best of their capacity to
steer our dear Institution to the greater heights.
With regards,
Yours faithfully,

(Paneendra K G) (Suresha Hegde S)
Gen. Secretary, AIKBEA Gen. Secretary, KBOO
AII INDIA KARNATAKA BANK EMPLOYEES’ ASSOCIATION ... ... ... ZINDABAD
KARNATAKA BANK OFFICERS’ ORGANISATION ... ... ... ZINDABAD
OFFICERS - WORKMEN UNITY ... ... ... ZINDABAD

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ALL INDIA KARNATAKA BANK EMPLOYEES’ ASSOCIATION (REGD.

Circular Letter No. 09/2022 READ AND CIRCULATE 17.10.2022

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