Islami Bank, being an welfare oriented banking institution, has by now deigned and implemented a good number of investment schemes keeping in view the needs of different sectors and various sections of the people for their socio-economic upliftment and to improve their quality of life. The investment schemes including the "Transport Investment Scheme" and the "Household Durables Investment Scheme" so far introduced have gained popularity and received wide response from the people.
Car is considered as on essential mode of transport in the modern society, particularly by a section of the officials, business houses and business executives and established professionals for movement in discharging their duties and responsibilities punctually and efficiently. Many of these categories of people can not purchase a car on payment of entire purchase value at a time out of their own sources. To meet this need Islami Bank has introduced the 'Car Investment Scheme' for the mid and high ranking officials of government and semi-government organizations, corporations, executives and directors of big business houses and companies and also for persons of different professional groups on easy payment terms and conditions.
Objectives
q
To meet
the demand of senior officials of different organizations, established business
houses and companies and persons of various professional groups who essentially
need a car but can not afford to purchase on payment at a time.
q
To assist
the above categories of persons to procure a car on easy payment terms and
conditions and thus become its proud owner.
q
To assist
in minimizing transport problem in the private sector and help the mid and high
ranking officials and professionals with fixed income in the improvement of
their standard of living.
q
To extend
the range of Bank's investment facilities to various sections of people in line
with the ideals of the Bank.
q
To
diversify the investment portfolio of the Bank by size, sector and volume.
Eligibility
Permanent
senior officers/executives of the following organizations:
Category-A
q
Government
Organisations.
q
Semi-Government
Organisations/Autonomous Bodies/Corporations.
q
Banks.
q
Commissioned
Officer of Armed Forces, BDR, Police and Ansars.
q
Teachers
of the Universities, Government Colleges.
Category-B
q
Executives/Directors
of big companies and business houses of repute.
q
Members
of all other professional groups having good income.
The clients, in both the categories, must be within
age group of 27-50 years with minimum 6 (six) years unexpired service in case of
service holders. In all cases the clients must have sufficient capacity to pay
the installments in due time to the satisfaction of the Bank. The Bank reserves
the right to regret the sanction of any proposal not found suitable.
Nature
of Car & Procurement Procedure
q
New/reconditioned
cars of reputed brands imported within the provision of import policy inforce
shall be allowed to be procured under the Scheme.
q
Interested
clients should submit at least 3 (three) quotations from 3(three) different
bonafide and genuine car dealers/importers/sellers alongwith the prescribed
application form duly filled in. No supervisory agent of the Bank, appointed
under the Scheme, shall involve in this business, directly or indirectly.
Ceiling
of Bank's Investment
Bank's
investment is maximum Tk. 3.50 lac per client against purchase cost of the
vehicle. Registration and comprehensive insurance cover shall be in the name of
the Bank. The clients shall have to bear all subsequent expenses relating to
blue book, registration, first party insurance, tax token, fitness certificate
etc.
Client's
Equity
Minimum
30% of the purchase cost of the vehicle. The amount of equity shall have to be
deposited with the Bank before disbursement of Bank's investment.
Period
of Investment
Period
of investment is maximum 4 (four) years from the date of disbursement or
delivery of the vehicle to the client, whichever is earlier.
Mode
of Investment
a.
Hire Purchase
b.
Hire Purchase Shirkatul Meelk.
Security
Requirements
The
following shall be obtained as security against bank's investment under this
Scheme:
A.
In case of clients falling under category-A
of eligibility criteria:
q
Personal
guarantee of the investment client.
q
Personal
guarantee of any of the officers of the rank and status equal to the client or
an officer of higher rank.
q
The
guarantee shall have to be duly authenticated by the competent authority of the organization/institution
where the client serves.
q
Employer's
certificate to the effect that the client is in permanent service of the organization.
The net pay and pay scale of the client is to be mentioned in the certificate.
q
An
undertaking from the client to the effect that in case of his failure to pay
regular installments, the amount is to be deducted from his salary at source for
adjustment of dues to the Bank.
B.
In case of clients falling under category
B of eligibility criteria, any of the following
additional collateral/securities are required:
q
Mortgage
of land
q
Bank
Guarantee
q
Deposit
of ICB Unit Certificates/National Savings Certificates/TDR/Share Certificates of
reputed companies duly discharged/transferred in favour of the bank and/or
completing required formalities.
Procedure
for Application & Sanction of Investment
Interested
persons falling within the eligibility criteria are required to apply in
prescribed form to the concerned Branch. The applications of service holders
should be duly recommended by their respective Departmental/Divisional Heads.
The Bank shall sanction investment, if the proposal is found suitable and viable
after feasibility study. The Bank reserves the right to sanction any investment
or reject it.
Mode
of Disbursement
Bank's sanctioned amount shall be disbursed directly
to the supplier of the vehicle as mentioned in the quotation/indent submitted
and accepted for the purpose on completion of the following requirements:
q
Deposit
of the equity amount by the client with the concerned Branch.
q
Completion
of all formalities including documentation for the investment.
q
Obtaining
of securities/collateral as per sanction requirements.
Supervision
Bank
may engage supervising agent(s) to supervise, monitor and recover the
investments under the Scheme. The cost of the supervision charge shall be
recovered from the client alongwith rent.
Mode
of Recovery
Dues to the Bank shall recovered in the
following manner:
q
In equal
monthly instalment alongwith monthly rent, starting from the first week of the
month, following the month of disbursement of delivery of the car whichever is
earlier.
q
The monthly instalment shall be payable by the first week
of every month.
q
Post-dated
cheques for the whole period of investment mentioning the amount of monthly
instalment shall have to be deposited by the client. In the first week of every
month, the cheque(s) shall be presented for clearance/collection for the
adjustment of the monthly instalment.
q
The
amount of monthly instalment shall not exceed 50% of the total income of the
client taking into account the take-home salary and other disclosed sources of
income of the client.
q
The
Branch shall have the right to take possession of the vehicle in case of failure
of the client to pay 3 (three) consecutive monthly instalment.
Bank's
Charges
q
Rate of
Return: 13% per annum or the rate to be determined time to time.
q
Risk
Fund: 1% per annum (2% per annum where the supervising agents not engaged).
q
Supervising
Charge: 1% per annum. Nil, where supervising agents not engaged.
Insurance
The
vehicle shall be covered by first party (comprehensive) insurance covering all
possible risks throughout the investment period at the cost of the client. The
client shall have to ensure timely renewal of insurance and payment of premium.
Registration
The
car shall have to be registered in the name of the Bank only. After payment of
the entire investment of the Bank including the charges etc., the car shall be
transferred in the name of the client.
Maintenance
The
client shall have to maintain the vehicle properly for ensuring its normal
operation and shall be solely responsible for loss/damage, if any, as long as it
is in his possession irrespective of risk covered by insurance policy.
Accordingly, repairing and maintenance cost of operation during investment
period, renewal of blue book, tax token, fitness and insurance shall have to be
borne by the client.
Inspection
For
the purpose of inspecting the status, operation and custody of the vehicle, the
Bank or its authorised agent has the right, at all reasonable time, to enter
into the house, office, factory, garage or the premise of the client where the
vehicle is kept.
Other
Terms and Condition
In
addition to the procedure, terms and conditions already mentioned, the
investment client shall have to abide by the following terms and conditions:
q
The
vehicle supplied to the investment client shall have to be used by him with
optimum care and that the client shall remain liable for compensation,
replacement etc., if any damage is caused to the vehicle due to his negligence,
carelessness and inefficient handling.
q
In the
event, the vehicle is lost or totally damaged and rendered irreparable due to
his negligence, carelessness or inefficient handling, the client shall be liable
to pay to the Bank the balance of the principal amount and rent etc.
immediately.
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