TSGLI Loan to Policy Holders
Telangana State Government has been released G.O.Ms. No. 34 Dt. 09.04.2015, Sanction of Loan to Policyholders on their polices of Life Insurance Scheme. Government has permitted to Simple Interest on loan to the Loan Holder by calculating expected amount.
Government have instructed and permitted the Director of Insurance to collect the interest on loan sanctioned to the policyholder soon after the loan in question is liquidated. Based on these orders of the Director of Insurance had revised the loan deduction order in which the Drawing and Disbursing officers are being asked to calculate interest on the loan soon after liquidation of loan at the rate given and recover the same from the loaners.
Government after careful examination of the proposal of the Director of Insurance, Telangana State, Hyderabad hereby accord permission to calculate the expected amount of simple interest on diminishing balance method at the time of sanction of loan itself, fix the E.M.I., and inform the same to the concerned Drawing and Disbursing Officers duly requesting them to recover the same which will be consisting of principal and interest. The Director of Insurance shall see that any excess or less amount of interest so recovered is accounted and adjusted at the time of subsequent loan or settlement of claim.