Master Circular on Personal Loans/Finance

Annexure to BM 1213 dated February 13, 2025

1 - Coverage

1.1 Broadly, ‘Personal Loans/finance’ (PL) are defined as loans/finance that are granted to individuals for non-business purposes.

1.2 The nature of facilities could include all fund-based outstanding facilities and may be in the form of term loans/finance, overdrafts, credit card facilities, etc.

1.3 ‘Personal Loans/finance’ are further categorised as ‘Personal Loans/finance Against Salary’ (PLAS) and ‘Other Personal Loans/finance’ (OPL)

1.4 ‘Personal Loans/finance Against Salary’ (PLAS) should be further categorized by the banks, as under:

S. No.

Purpose

Category

1

Purchase/construction of house or flat or purchase of land, for residential purpose or renovation of house/flat

Housing loans/finance (HL)

2

Other purposes such as purchase of vehicles/consumer durables, medical expenditure, educational needs, wedding expenditure and investment in shares/other securities

General Personal Loan (GPL) which is further categorised into four sub- categorised as

  • Educational Loan (EL)

  • Vehicle Loan (VL)

  • Loans for investment in Shares (LIS)

  • Other GPL (OGPL)

3

Overdraft facilities based on salary

Overdraft Against Salary (OAS)

4

Credit Card facilities based on Salary

Credit Cards against Salary (CCAS)

5

Credit Card facilities not based on Salary

Credit Cards - Non- Salary (CCNS)