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
|
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) |