Professional Documents
Culture Documents
AT A GLANCE
INDEX
S. No.
1
2
3
4
5
6
7
8
9.
10
11
12
13
14
15
16
17
18
19
20
21
Name of Schemes
BARODA HOUSING LOAN
BARODA HOME IMPROVEMENT LOAN
BARODA ADDITIONAL ASSURED ADVANCE (AAA)
BARODA HOME LOAN TO N.R.I/P.I.O/O.C.I
BARODA ASHRAY
BARODA
MORTAGE
LOAN
TO
RESIDENT
INDIAN/N,R,Is.
LOAN AGAINST FUTURE RENT RECEIVABLES
BARODA TRADERS LOAN
BARODA
TRADERS
LOAN
AGAINST
GOLD
ORNAMENTS/JWELLERY
BARODA ADVANCE AGAINST GOLD ORNAMENTS
JWELLERY
EDUCATION LOAN-BARODA VIDYA
EDUCATION LOAN-BARODA GYAN
EDUCATION LOAN-BARODA SCHOLAR
EDUCATION LOAN: CAREER DEVELOPMENT
BARODA
EDUCATION
LOAN-VOCATIONAL
EDUCATION & TRAINING
BARODA AUTO LOAN
BARODA
PERSONAL
/PENSION/COMPUTER/CONSUMER LOAN
BARODA LOAN TO DOCTORS
BARODA
LOAN
AG
SECURITIES-AGNSCs/KVPs/LICI POLICY/RELIEF/GOVT BONDS.
BARODA SALARY ADVANTAGE SCHEME
LIST OF IMPORTANT CIRCULARS
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Page No.
Retail Lending:
In 1992-93 economic reforms process started with submission of
Narasimham Committee Report on 16.11.1991. The phase of liberalization,
privatization and globalization started. RBI started reducing its
interference and slashing of SLR and CRR to bring at the minimum
required level, disintermediation also started empowering big corporate
to access the market for their funds requirement, non banking finance
companies were also encouraged to come in the market, increasing
competition for commercial banks. A number of foreign banks and private
sector banks also came in the fray.
In view of above Retail Lending is an area emerging for absorbing ample amount
of bank funds. The growth of retail lending, especially, in emerging economies, is
attributable to the rapid advances in information technology, the evolving
macroeconomic environment, financial market reform, and several micro-level
demand and supply side factors.
Target borrowers under this sector are the middle class people and middle class
people are low default area. Researchers have shown that high class and low
class people are more likely to default in repayment. Population of middle class
people is increasing and break down of joint family system has created the
scope of more requirements of household consumer durable goods.
Opening of doors for the imported goods under WTO has resulted in flush of
good quality consumer durables at reasonable prices, thereby increasing the
demand from the public. It has created a scope of credit absorption for the
bank. This sector of credit is subject to higher rate of interest providing ample
yield to the bank along with diversification of the risk because smaller loans
are granted to a large number of people.
From the above discussion, it is clear that Retail Lending is the need of the hour
and survival is very difficult, in its absence. Now question arises where to do
Retail Lending. These are the schemes having potential in every area of the
country. In case of rural/ semi urban areas, a good number of families are
emerging as the prospective borrowers with the increase in rural electrification,
education and connectivity with the cities. TV, Fridge and Scooter/ Motor
cycle are the articles of daily use for them. People from villages getting jobs in
nearby cities, usually commute daily for service and come to village in the
evening, school teachers and other staff of the school and dispensary in the
village can be prospective borrowers. Shop keepers and other small business
people can also avail the loans under Retail Lending schemes. Some progressive
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families in the village can be tapped under the schemes for Baroda Housing
Loans, education loans and other consumer goods items.
Bank of Baroda offers a wide range of retail loans to meet diverse needs of
customers whether the need is for a new house, child's education, purchase of a
new car or home appliances, our unique and need specific loans enable to
convert their dreams to realities.
Retail Loan Factory:
As a part of various customer centric initiatives, our Bank established ,Urban
Retail Loan Factories
(URLF) at various centers to augment Retail Business.
The RLF comprises of Sales and processing units and works on assembly line
principles. The basic functions are generation of loan leads and its conversion
in to sanction. Once sanction is accorded by RLF the entire file containing all
papers/ documents are sent to the Branch of the choice of applicant for
disbursement and further servicing of account. However, zerox copies of
papers/ documents are maintained at RLF.
The primary objective of U.R.L.F S are
Retail Products.
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Maximum up to Rs. 300 lacs in Metro & Urban area & Rs.100lacs in Rural & Semi
urban Area
(Subject to repaying capacity) although this is the upper ceiling on the loan,
quantum of loan amount should not exceed as under
Monthly Income
Eligible Amount of Loan
Up to Rs.20000/
36 times of monthly income
+Rs.20000/ & upto Rs.1
48 times of monthly income
lac
More than Rs.1 lac
54 times of monthly income
Other Than Salaried
5 times AAI(last 3 years)
Wherever income of the family members is clubbed, they should be made coborrowers.
In case of Agriculturists who are predominantly dependent on agriculture
and not required to file income tax returns, their income may be assessed
by obtaining income certificate from the local competent revenue
authority only. The income mentioned in the certificate must be assessed
properly taking in to consideration land holding of the Agriculturist, area
of land actually being cultivated by him, cropping pattern and acreage
under different crops together with number of crops harvested in a year
depending on availability of irrigation facility etc. The assessment of
income so arrived must be properly recorded with justification in the
appraisal note.
Payment of all type of Life Insurance Premia (except premia of Unit
Linked Insurance Plan -ULIP) irrespective of Insurance Company issuing
the policy, need not be considered for Deduction.
For persons other than Salaried, Depreciation may be added into
their income for the purpose of calculation of loan Limit; subject
to average depreciation during the last -3- years or the
Depreciation during the current year whichever is Lower and the
latest Audited Balance Sheet should not be older then -9months.
RATE OF INTEREST:
With floating rate option (Interest rate as advised from time to time)
LOAN REPAYMENT PERIOD:
1. Up to 30 Years (including moratorium period)
2. Moratorium period maximum 36 months(18 months for under construction
houses & building upto 7th floor and thereafter 6 months additional
moratorium per floor)
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3. Age of the borrower plus repayment period should not be beyond retirement
age or 70 years max subject to Son/Daughter /Spouse who is a legal heir
and
4. preferably below 50 years of age, with sufficient income for servicing the
loan
5. repayment joins as Co-Borrower/Guarantor case of others.
REPAYMENT CAPACITY:
a. In case of Salaried Persons :
Income Bracket (Monthly)
Salaried
Monthly income
upto Rs.20000/
20%
25%
Others
Monthly income
above Rs.20000/
20%
20%
20%
20%
20%
15%
15%
Margin will be only on actual cost of House Property / plot excluding Cost
of Stamps, Registration Charges and other expenses, if any. Please note
that these guidelines shall apply on all home loans of more than Rs.20 lac to
Resident Indians /NRIs /PIOs with effect from.20th February 2012.
However, in case of home loans up to Rs.20 lac, Registration Charges, Cost of
Stamps and other Expenses like Life Insurance Premium etc can be included
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in the project cost for arriving at the loan limit to be sanctioned after
stipulating margin of 20% subject to condition that Loan to Value(LTV) Ratio
does not exceed the level of 90%. (BCC:BR:104:59 7th February 2012)
SECURITIES:
Equitable Mortgage of plot / house or
Collateral securities like NSCs, LIC policies, Shares etc.
Personal guarantees.
Copy of sanction letter duly acknowledged by the borrower / guarantor is
part of the loan documents.
Duly stamped and registered original agreement to sale executed by builder
in favour of borrower.
Original receipt in respect of registration of Agreement to sell.
Copy of the map of the building duly approved by the appropriate authority
INSPECTION:
Pre sanction inspection is to be carried out as usual. At each stage of
disbursement of the loan, inspection of the dwelling unit must be carried out.
After completion of the house, post disbursement inspection be carried out at
least once in 3 years if the account is regular otherwise as per administrative
guidelines.
FREEBEES:
Silver Card to borrowers with loan limit of above Rs. 2 lacs and up to Rs. 5
lacs.
Above Rs. 5 lacs & up to Rs. 10 lacs EXCLUSIVE CARD
Above Rs.10 lacs GOLD CARD
Free personal accident Insurance.
ADDITIONAL ASSURED ADVANCE FACILITY:
An additional loan to home loan borrowers for any purpose other than
speculative and illegal purpose .
REPAYMENT EQUATED MONTHLY INSTALMENTS:
At the time of granting loan EMI to be calculated as per chart given in
Banks publication no. 138-Pages 21 to 30 (Chart No. 3 for lump sum
annuity deposits monthly repayment) EMI should be in figures rounded
off to next higher rupee. It can also be calculated through LAMOD
command in finacle instantly.
Interest from the date of disbursement to the date of commencement of
EMI should be recovered separately on monthly compounded basis.
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Monthly recovery under EMI shall be credited in full to the loan account.
As regards application of interest, the same should be calculated on daily
products basis,
EMI would undergo modification, if Base Rate is changed. Similarly, If the
borrower remits any lump sum in-between, EMI will require to be refixed.
Recovery of interest for the pre-EMI period:
a. Interest charged during the pre-EMI period is to be recovered as and
when debited, before commencement of recovery by EMI.
b. For any reason, if the borrower is not in a position to repay the interest
as and when charged in one lump sum, the same may be recovered within 2
months, by charging overdue interest as and where applicable, as per rules
/extant guidelines.
INSURANCE:
Free Personal accident Insurance. Life insurance cover for Natural death is also
available to borrower/Jt. Borrower on payment of appropriate Premium under tieup arrangement with Kotak Mahindra (wef 1.1.10) & India First Life Insurance Co
(wef 1.9.10). Premium amt for obtaining cover can be financed as part of home loan
at request of borrower & accordingly EMI is fixed. Free Property Insurance has
been withdrawn w.e.f 10.09.2012 (BCC:BR:104:317 dated 10.09.2012)
OTHER ASPECTS:
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CIRCULAR REFERENCE
BCC/BR/97/185 Dated 14.07.2005
BCC/BR/97/195 Dated 03.08.2005
BCC/Br/97/311 Dated 14.11.2005
BCC/BR/98/42 Dated 20.02.2006
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/138 Dated 24.05.2006
BCC/RB/98/208 Dated 01.08.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/99/259 Dated 30.08.2007
BCC/BR/99/310 Dated 12.10.2007
BCC/BR/99/321 Dated 25.10.2007
BCC/BR/99/322 Dated 29.10.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009
Test your understanding
Q.1 . One
a)
b)
c)
d)
e)
Q2. Maximum housing loan which can be sanctioned by rural & semi urban
branches is;
a) Rs.300lac
b) Rs. 150lac
c) Rs.100lac
d) Rs.5lac
e) Rs.200lac
Q3.
Loans for repairs to the damaged dwelling units of families up to Rs.
-----lac in rural and semi- urban areas and up to Rs.----- in urban and
metropolitan areas qualifies for priority sector.
a) 1,2
b) 2,5
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c) 1,4
d) 2,4
e) 1,5
Q4. The Margin requirement for Baroda Home loan is __________ for
reimbursement of house/ flat expenses constructed from own sources in
case of income up to Rs. 20000.
a) 25%
b) 15%
c) 20%
d) 10%
e) 30%
Q5. In case of home loans upto Rs.20 lac, Registration Charges, Cost of
Stamps and other Expenses like life Insurance Premium etc can be included in
the project cost for arriving at the loan limit to be sanctioned after stipulating
margin of 20% subject to condition that; LTV does not exceed
a)
b)
c)
d)
e)
85%
95%
75%
80%
90%
01
b
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c
03
b
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04
a
05
e
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MARGIN:
25 % (Project cost will include estimated cost of repairing / renovation /
extension, cost of furniture / fixtures / furnishing / other gadgets and also the
stamp duty payable for creation of equitable mortgage). Maximum 5 % reduction
in margin for group borrowers.
SECURITIES:
Mortgage of the property to be repaired / renovated. Wherever the customer
desires that the Mortgage need not be insisted upon, the branch may as a
special case accept at its discretion, security of adequate value (10% higher
than the loan sanctioned in the form of life insurance policies, NSCs, KVPs, RBI
Bonds, Government promissory Notes, or such other security as may be deemed
adequate.
DOCUMENTATION:
Term loan agreement.
General form of Guarantee (LDOC 33) after incorporating additional
paragraph, wherever third party guarantee is stipulated.
Additions to be made in existing housing loan application.
Usual procedure for creation of equitable mortgage of the immovable
property being financed.
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REPAYMENT PERIOD:
Maximum 10 years by Equated Monthly installments. Moratorium period
maximum 6- months or one month after completion of repair/renovation work
whichever is earlier. Guidelines applicable for housing loan repayment period may
be referred for exceptions.
DISBURSEMENT OF LOAN:
In case of repair / extensiondirectly to the borrower subject to verification
of bills. For furniture / fixtures / furnishing and other gadgets directly to the
supplier.
DOCUMENTATION CHARGES:
Loan Limit
Up to Rs. 25000/Above Rs. 25000/- and up to Rs. 2 lacs
Above Rs. 2 lacs and up to Rs. 5 lacs
Above Rs. 5 lacs and up to Rs. 10 lacs
CIRCULAR REFERENCE
BCC/BR/96/079 Dated 19.02.2004
BCC/BR/96/170 Dated 20.04.2005
BCC/RM/97/75 Dated 14.11.2005
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006
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06 months
12 months
18 months
24 months
30 months
Q 2. The max period which can be given in home improvement loan for
repayment;
(a)
15 years
(b)
20years
(c)
25years
(d)
30 years
(e)
10years
Q3. The maximum amount of loan which can be sanctioned
improvement loan is
(a)
Rs.10lac
(b)
Rs.100lac
(c)
Rs.300lac
(d)
Rs.25lac
(e)
Rs.50lac
Q4. Home
(a)
(b)
(c)
(d)
(e)
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in home
1 year
2 years
3 years
2.5 years
0 6 months
1
a
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e
3
a
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4
e
5
c
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SECURITY:
Extension of the existing equitable mortgage of the housing loan. Personal
guarantee of third party if the same is stipulated in Housing loan.
PROCESSING CHARGES- 0.50% ( Minimum `5000/- ) + Service Tax
DOCUMENTS:
In case of Term Loan
Term Loan Agreement
General Form of Guarantee if guarantee is stipulated.
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Q
A
(c)
(d)
(e)
60 %
70%
As per norms of housing loan.
1
a
2
c
3
b
4
d
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5
c
Eligibility:
Must have minimum gross annual income equivalent to Rs. 5 lacs per annum
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Margin:
Repaying Capacity:
Total deductions including proposed EMI should not exceed 60 % of the
gross income of the borrower.
Repayment Period: 15 years with max moratorium of
12 months.
Rate of Interest :As in Case of home loan
Security /Documents: As in case of home loan
Guidelines if documents are to be executed by P.O.A:
R.H not below D.G.M may authorize the branches subject to
verification by our banks legal officers.
The principal to give a single letter of confirmation, which confirms
that the documents executed by his attorney are binding upon and
thus valid, subsisting & enforceable.
P.O.A in favor of agents/attorney is unconditional duly stamped and is
in force as on date.
P.O.A executed overseas should be done only in office of the Indian
embassies abroad and should be got attested by the office of Indian
embassy.
And those executed in India should be done only in the office of the
Registrar of Assurances.
The P.O.A executed in presence of Notary Public/Magistrate either in
India or abroad not to be entertained.
The P.O.A out side India are to be stamped ad valorem within 90 days
of arrival into the country.
Instead of a third party ;agent to be a close relative of principal,e.g
husband,wife,son,daughter,father,mother,father in law,mother in
law,brother,sister,daughter in law,son in law,brother in law,& sister in
law.
Efforts to be taken to include agents as guarantors.
Refer circular no BCC: Br:103:171 DT 17TH June 11
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1 year
3 years
2years
4 years
No such condition
Q2. A N.R.I can apply for home loan if he has income at least Rs.----------lacs
p.a.
(a)
2
(b)
3
(c)
4
(d)
5
(e)
1
Q3. The maximum repayment period which can be given to
N.R.I for home loan is ----------- years.
(a)
25
(b)
20
(c)
15
(d)
30
(e)
10
Q4. The income criteria for calculation of outer limit of housing loan in case of
N.R.I(salaried) is------------subject to comfortable repayment capacity.
(a)
54 times of gross monthly income
(b)
48 ------------do-----------------(c)
36 ------------do-----------------(d)
25------------do------------------(e)
As per norms of home loan to residents.
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50
120
90
30
Not required.
Q
A
1
c
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d
3
c
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4
b
5
c
BARODA ASHRAY
(Reverse Mortgage Loan)
PURPOSE:
To supplement the cash flow stream of senior citizens in order to address their
financial needs by way of mortgage of self-occupied property (house / flat).
TYPE OF FACILITY:
Combination of monthly annuity payments, and Lump sum payments for upgradation/ renovation/home improvement/ extension of residential property.
Lump sum payments for medical / other emergencies/ exigencies of the family
Lump sum payment will be subject to maximum 10% of the total
loan limit assessed.
NATURE OF FACILITY: Term Loan.
AREA COVERAGE: All domestic branches.
ELIGIBILITY:
1.
Should be Senior Citizen of India, above 60 years of age.
2.
Married couples will be eligible as joint borrowers provided one of them is
above 60 years of age and spouse is not below 55 years of age at the time
of application.
3.
Should be the owner of a residential property (house or flat) located in
India in his/her own name.
4.
Residential property should be used as permanent primary residence
(fully self occupied property).
Ex-staff members shall also be eligible to avail loan under the product.
ELIGIBLE END USE OF FUNDS:
1.
Up gradation, renovation and extension of residential property.
2.
Home improvement, maintenance
3.
Insurance of residential property.
4.
Medical, emergency expenditure for maintenance of family.
5.
For supplementing pension / other income.
6.
Repayment of an existing loan taken for the residential property to be
mortgaged.
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7.
Any other genuine need.
Loan amount will not be used for speculative, trading purposes.
MAXIMUM AMOUNT:
The maximum loan amount including interest for entire life shall be restricted
to Rs. 1 crore, subject to the margin of 20% on present market value of the
property.
As an exigency arrangement, the borrowers may be counseled to keep 5 % of
limit assessed for medical / any other unforeseen financial requirements in
entire life span. In case of any lump sum payment, the annuity needs to be
recomputed after giving effect of the interest on such amount.
However, annuity will be computed considering the life expectancy of 80 years
(treating the loan tenure of 20 years), but initially payments shall be made for
15 years and if any of the borrowers survives, the loan may further be
extended for next 5 years and accordingly, annuity may be disbursed for next 5
years.
RIGHT TO RESCISSION:
The borrower(s) shall be given 7 business days to cancel the transaction, the
right of rescission. If the borrower(s) does not intend to avail the loan,
processing charges may be waived.
However, if loan amount has been disbursed, the entire loan amount will need to
be repaid along with applicable interest.
DISBURSEMENT / TENOR OF LOAN:
1.
The amount will be directly disbursed to the borrower/s in monthly /
quarterly / half-yearly / annual installments.
2.
If loan is also considered for repayment of existing loan raised on the
security of the property from any institution, the payment of such
amount shall be directly paid to the Bank / FI concerned.
3.
Directly pay the property tax or hazard insurance
premium.
4.
Lump-sum payment to the borrower/s directly on account of illness of the
borrower / family member, home improvement, maintenance, up-gradation
of house and any other exigency requirements.
OPTION TO ADJUST PAYMENTS:
The Bank shall have the option to revise periodic / lump sum amount at the
interval of every 5 years based on valuation of the property.
Borrower shall be provided with an option to accept such revised terms and
conditions for furtherance of the loan.
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REPAYMENT OF LOAN:
The loan shall become due and payable only when the last surviving borrower
dies or would like to sell the home / permanently moves out of the home for
aged care to an institution or relatives.
Permanent move shall generally mean that neither the borrower nor any coborrower would be living in the house continuously for one year or do not
intend to live continuously.
1.
The loan will, as such, become due for recovery and payable after death
of the last surviving spouse.
2.
Settlement of loan, along with accumulated interest, to be met by the
proceeds received out of sale of residential property.
3.
The borrower(s) or his/her/their estate shall be provided with the first
right to settle the loan along with accumulated interest, without sale of
property. A reasonable period of 2 months may be provided when
repayment is triggered, for house to be sold.
4.
Surplus if any, remaining after settlement of the loan with accrued
interest, shall be passed on to the estate of the borrower.
FORECLOSURE:
The loan shall be liable for foreclosure due to occurrence of the following
events of default.
1.
If the borrower has not stayed in the property for a continuous period of
one year.
2.
If the borrower fails to pay property taxes or maintain and repair the
residential property or fails to keep the home insured, the Bank reserves
the right to insist on repayment of loan bringing the residential property
to sale and utilizing the sale proceeds to meet the outstanding balance of
principal and interest.
3.
If borrower(s) declare/s him / her / themselves
bankrupt.
4.
If the residential property so mortgaged to the Bank is donated or
abandoned by the borrower(s).
5.
If the borrower(s) effect changes in the residential property that affect
the security of the loan for the Bank viz. renting out part or all of the
house; adding a new owner to the houses title; changing the houses
zoning classification; or creating further encumbrance on the property
either by way taking out new debt against the residential property or
alienating the interest by way of a gift or will.
6.
Due to perpetration of fraud or misrepresentation by
the borrower(s).
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7.
8.
SECURITY:
Simple / Equitable mortgage of the Residential property.
Commercial property will not be taken as a security under the product.
TENURE: 15 years. The tenure may further be extended till survival of the
borrower/s subject to the advance value of the property.
PROCESSING CHARGES:
Asper Circular No.BCC/BR/99/321 dated 25.10.2007
VALUATION OF PROPERTY:
The property is to be valued by Banks / Government approved valuer as per
extant guidelines, at the time of considering the facility.
Subsequently, the property to be revalued at the interval of every five
years.
AGE OF BUILDING TO BE MORTGAGED:
1.
The age of building should not exceed 40 years.
2.
Building more than 40 years old may be accepted as security, subject to
approval of Regional Head, who will ascertain structural soundness of the
building by obtaining opinion and certificate from approved engineer,
about structural soundness of the building and its residual life.
INSURANCE:
Insurance of the residential property mortgaged (cost to be borne by
borrower).
MAIN DOCUMENTS REQUIRED TO BE SUBMITTED BY THE APPLICANT:
1.
Documents relating to KYC norms.
2.
Original title deeds of the property offered for mortgage.
3.
Latest maintenance, Water Tax, Municipal Tax and any other such taxes
paid receipt (No taxes should be in arrear, while considering the loan).
4.
No objection letter from Co-Op Society.
5.
Permission to create Equitable Mortgage from society
6.
Confirmation of society that Banks lien on society records is noted.
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DOCUMENTATION:
1.
Loan agreement.
2.
Deed of Simple Mortgage / Equitable Mortgage.
3.
Declaration from the Borrower / s.
LEGAL OPINION ABOUT TITLE DEEDS:
1.
Legal opinion to be obtained from Banks approved advocate.
2.
Actual Legal fees to be borne by the borrower.
OTHER CONDITIONS:
1.
The incumbent/s should have clear title indicating the
ownership of the property.
2.
In case of lease hold property, residual period of lease should be at least
equal or more of the difference of present age of the borrower/s and
normal life expectancy age of 80 years plus 5 years.
3.
In case of income tax payee, it is to be ensured that no income tax is in
arrear at the time of sanction of the loan, once in a year thereafter.
4.
Application form as per Circular.
5.
No pre payment charges for full / partial pre-payment of the loan at any
time.
CIRCULAR REFERENCE
BCC:BR:99:346 Dated 17.11.2007
BCC/BR/101/15 Dated 09.01.2009
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Q4. The maximum amount of loan including interest which can be given under
Baroda Ashray scheme is Rs.--------(a)
1 crore
(b)
2 crores
(c)
50lacs
(d)
25 lacs
(e)
3 crores
Q5. In Baroda Ashray after giving loan the property is to be revalued at the
interval of every --------years during entire period of loan.
(a)
2
(b)
3
(c)
1
(d)
5
(e)
4
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1
a
Q
A
2
e
3
e
4
a
5
d
TYPE OF FACILITY:
ELIGIBILITY:
LIMIT:
(Subject to income criteria, repayment capacity& advance value of security
Offered)
Minimum
:
Rs. 1.00 lac
Maximum
:
Rural Branches
:
Rs. 5 lacs
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INCOME CRITERIA:
Salaried Class
:
30times of Gross monthly income
Others
:
3 times of average ( last 3 years ) annual
income
Income of all joint owners of the property who are co-borrowers can be
clubbed.
For agriculturists income certificate from appropriate revenue authority
to be obtained
Future income is not to be considered.
Co-borrower: The facility can be considered to an earning member /
members of a family against the property standing in the name of any
member / members of the family. Members of family will comprise of
spouse, father, mother, son/s, brother/s and brothers wives and
daughter/s (subject to the condition that they are living in the family
jointly, this is to be ascertained through interview of the applicants). In
case of Loan to Professionals 20% of Average annual Business
Turnover / Professional receipt.
REPAYMENT CAPACITY:
MARGIN:
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SECURITY:
REPAYMENT PERIOD:
Overdraft : Maximum 10 years (Methodology would be as under)
Reduction in operative limit proportionately (Minimum 10 % by end of
each year, synchronizing with review of the account).
Interest to be recovered separately as & when applied in the account.
[Facility may be continued without reduction, subject to the condition that
minimum annual turnover in account is at least 25 % of the limit sanctioned
and conduct of the account is satisfactory]
Loan :
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LOAN
1 % of loan amount subject to :
Minimum
: Rs. 1000/- + ST
Maximum
: Rs. 50000/- + ST
OVERDRAFT
0.35 % of loan amount
Minimum
: Rs. 1000/- + ST
Maximum
: Rs 25000.00 + ST
INSURANCE:
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LENDING POWERS:
Sanctioning authorities up to Grade / Scale III are authorized to
sanction facilities up to Rs. 25 lacs and Authorities under SMG/S IV are
authorized to exercise normal DLPs for sanction of limits under the
scheme.
ACTIVITY CLEARANCE :
FREE
:Paras International
:Exclusive
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OTHER CONDITIONS:
POWER OF DEVIATION:
Powers of Financial Deviations which have a direct impact on Profit & Loss
A/C of Bank shall not be exercised below the level of BCC. However non
financial deviations may be considered as per powers delegated.
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Q
A
1
c
2
a
3
a
4
c
5
a
MNCs
Banks
Multinationals
Public
Sector
Note: Exposure must be under commercial real estate segment as per extant
guidelines of RBI / our Bank from time to time.
LIMIT & MARGIN:
55 % of rent (net of TDS, advance rent, security deposit) due and
receivables, for the unexpired certain period of lease and uncertain
period of lease ( optional period ) subject to :
Minimum amount of Loan: ` 25 Lac
For Landlord of Bank of Baroda Premises: No minimum limit
Maximum exposure for Single Borrower: ` 200 crores
Maximum exposure for Group Borrower: ` 250 crores
Maximum eligible limit to be fixed considering the unexpired certain lease
period and uncertain period of lease (Total option & certain period of maximum
10 years)
For the period of computation of quantum of rent receivables, the option period
to be taken into consideration should not exceed 1/3rd of the certain period.
REPAYMENT:
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Takeover norms given in Domestic Loan Policy are not applicable for
takeover of loan A/Cs of other Banks for this scheme. However following
norms should be should be strictly adhered :
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REFERENCE CIRCULAR
BCC/BR/102/143 24.05.2010 Master Circular
Test your understandings
Q.1 Minimum amount of loan under future rent receivable scheme which can be
sanctioned to a land lord of Bank of Baroda premises.
(a)
Rs.25.00lacs
(b)
Rs.10.00lacs
(c)
Rs.05.00lacs
(d)
Rs.15.00lacs
(e)
No minimum limit
Q2. Minimum amount of loan which can be sanctioned to borrower other than
BOB landlord, under future rent receivable scheme.
(a)
Rs.25.00lacs
(b)
Rs.10.00lacs
(c)
Rs.05.00lacs
(d)
Rs.15.00lacs
(e)
No minimum limit
Q3. Maximum amount of loan which can be sanctioned to any single borrower
Under future rent receivable scheme.
(a)
Rs.100.00lacs
(b)
Rs.150.00lacs
(c)
Rs.200.00crores
(d)
Rs.250.00crores
(e)
No max limit
Q4. Maximum amount of loan which can be sanctioned to any group borrower
Under future rent receivable scheme.
(a)
Rs.100.00lacs
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(b)
Rs.150.00lacs
(c)
Rs.200.00crores
(d)
Rs.250.00crores
(e)
No max limit
Q5.Amount of loan is considered @ -----------% of rent (net of TDS, advance
rent, security deposit) due and receivables, for the unexpired certain period of
lease and uncertain period of lease ( optional period ) subject to maximum limits
of scheme of Future rent receivable.
(a)
(b)
(c)
(d)
(e)
50
40
45
55
60
1
e
2
a
3
c
4
d
5
d
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The credit facility may be considered for traders who are established in
their line of business preferably for 2 years.
Trading units established by our existing customers with satisfactory
dealings or near relatives, even if these are established for less than 2
years.
Traders units of non-customers having less than 2 years establishment, with
the prior approval of Regional authorities.
HUFs & Public limit cos are not eligible.
PURPOSE:
a) Working capital requirements.
b)Development of shop (e.g. purchase of equipment, P.C., air-conditioner,
furniture etc. but not for purchase of shop), for need based requirements
subject to a maximum of 25% of the working capital limit sanctioned.
c) Non fund based facilities like BG & LC within the limit based on value of
securities.
AMOUNT:
Minimum Rs. 25,000/Maximum Rs. 200 Lacs.
ASSESSMENT OF WORKING CAPITAL:
Advance value of collateral security Or
20% of the projected annual sales subject to verification of sales tax
returns of previous year, Which ever is less.
MARGIN:
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2. For dwelling units which are older than 25 years, Regional Head may
authorize such cases on selective basis, subject to, ascertaining
structural soundness of the building by obtaining an approved engineers
certificate, certifying the structural soundness as well as residual life of
the building should be at least five years more than the repayment period
of the loan.
3. As regard overdraft facility secured by immovable property.
- Building less than 25 years old guidelines applicable to general
advances to be followed.
- Older than 25 years - the branch will be required to carry out
inspection of the property every year at the time of review of facility
and obtain structural soundness report from architect every 3rd year
along with valuation of property.
- In case, any defect is observed during inspection of the security or in
architect's report, branch will be required to ensure substitution of
the security having requisite value immediately or ensure liquidation of
the facility at the earliest but not later than 12 months period in any
case.
SECURITY / DOCUMENTATION:
1. D. P. Note
2. Letter of Continuing Security
3. Hypothecation of Goods (Where ever applicable)
4. General Form of Guarantee in case the immovable property charged to bank
is in the name of 3rd party.
5. Undertaking from borrower to exclusively deal with our Bank. Tangible
collateral securities in the form of mortgage of land (not agricultural
land) and buildings, NSCs, our Banks FDRs, Govt. Bonds, LIC policies
(surrender value), approved bonds. Valuation of property to be done by
Bank/Govt. approved valuer and valuation to be done once in 3 years.
6. Property to be mortgaged must be in the name of either:- Borrower
Proprietor, Partner, Director
Close relative of borrower who should stand guarantor.
Third party property provided credit facility is for Rs. 1 lac and above
Credit Rating: Credit Rating is to be done at the time of sanction / review of
the account. Fresh advance can be granted only to the applicants securing
minimum credit rating of BTL-6 under the new Credit Rating Model applicable
for limits upto Rs.200 lacs
hosted on LAPS.Facilities of more than Rs.200
lacs shall continue tobe rated on BOBRAM.
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Imp Note: Only two retail loans can be considered against property charged to
the Bank exclusively for Retail Loans, subject to availability of adequate
residual value as advised vide Circular No. BCC: RM: 97/75 dated
14.11.2005.However powers for allowing second loan rests with the
Regional Manager.
4.5:1
3:1
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(c)
(d)
(e)
5:1
6:1
4:1
Q5. Maximum laon which can be considered under Baroda traders scheme
(a)
(b)
(c)
(d)
(e)
Rs.200.00lacs
Rs.100.00lacs
Rs 250.00lacs
Rs.50.00lacs
Rs.300.00lacs
1
b
2
c
3
e
4
d
5
a
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Target Group:
All Individuals, including ex- Staff members( but existing staff members are
not eligible), Joint borrowers (closely related), and Proprietorship /partnership
firms engaged in trading and having license, wherever required, for the same
from competent authority.
Other conditions of our product Baroda Traders Loan shall apply.
Eligibility:
20% of the projected annual turnover or 75% of the market value of the gold
ornaments assessed by Banks approved assayer, offered as security
Purpose:
Working Capital Requirement and /or purchase of equipments for development
of Shop e.g. Computer, Furniture etc
Nature of facility: Loan / Overdraft,
Limit :
Minimum Rs. 0.50 lac Maximum Rs. 2.00 lac
However max limit is to be fixed on the basis of per gram advance value of Gold
as circulated by our bank on quarterly basis
Margin:
25% on the present market value of the Gold Ornaments assessed by the Banks
approved assayer. Ornaments containing gems and stones will not be considered
as security for the purpose.
Rate of interest:
Base Rate plus 3% p.a. with monthly rests
Period:
Loan: for maximum of 60 months
Overdrafts: for 12 months subject to annual review
Unified Processing charges:
0.50% of loan limit minimum Rs.250/- plus service tax.
Documents /Papers:
1. Application Form meant for Baroda Traders Loan
2. Detailed appraisal Note
3. D P Note
4. Letter of Pledge cum Take Delivery Note
5. Letter of Installment /Letter of continuing security
6. Letter of undertaking for retail Loans
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7. Hypothecation of goods
8. Letter of authority to pay assaying charges to the assayer.
Other Conditions:
1. Method of assessing the market value and safe keeping the ornaments will
be the same as in the case of Baroda Advance Against Gold Jewellery /
Ornaments
2. In case the Account turns NPA, method of recovery of Banks dues will be
the same as in the case of Baroda Advance against Gold Jewellery /
Ornaments
3. Assayers Charges have to be borne by the borrower and charges will be
same as in the case of Baroda Advance against Gold Jewellery / Ornaments
i.e. Rs. 250 per lac.
4. KYC Norms to be strictly complied with.
5. Sanctioning Authority to ascertain and ensure that the person offering
the Gold Ornaments as security is the actual owner of the ornaments and to
make record of this fact in the appraisal note.
6. As the gold is highly price sensitive, branch to ascertain the value of
ornaments on Quarterly basis and ensure that necessary margin is
maintained. If required, limits may be reduced to maintain the margin and
borrower may be advised to restrict his drawings upto revised limit.
7. Branches to use the services of the Assayer already empanelled for
Baroda Advance Against Gold Jewellery/Ornaments and charges to be paid
@250/- per lac and in the multiples thereof, as applicable for Baroda
Advance Against Gold Jewellery/Ornaments
8. As per revised security norms, Gold coins (specially minted and sold by
Banks) can now be accepted as primary/collateral security.
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Target Group: All individuals including staff and ex-staff members,being the
true
owner of the Gold Ornaments /Jewellery. KYC guidelines must be
strictly complied with, No third party loan to be granted i.e. loan
to be
granted to immediate owner only.
Purpose:
Security : The loan shall be secured by pledge of min. 22 carat / hall mark
jewellery / Gold coins. Ornaments containing Gems and stones will not be
accepted.
Limit:
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Other Conditions:
1. Gold ornaments / Jewellery /Gold Coins shall be valued by banks approved
Gold valuer/assayer in the Branch Premises in presence of Branch Manager
/Officer and the borrower concerned and a certificate of valuation along
with complete details of quality and quantity of securities of Gold Ornaments
/Jewellery shall be kept on record. After assaying, the gold ornaments are
to be put in a cloth bag or thick polythene bag and sealed in presence of the
borrower / inscribing their name thereon. The details of the sealed packet
containing name of borrower, details of securities and loan sanctioned must be
recorded in a register under a specific serial number allotted to the packet and
thereafter packet may be kept under joint custody. The assayer must bring his
own metal stamp and the same may be affixed on the jewel packet along with
the branch seal.
2. In case the Account turns NPA, method of recovery of Banks dues will be
the same as in the case of Baroda Advance against Gold Jewellery /
Ornaments
3. Assayers Charges have to be borne by the borrower and charges will be
same as in the case of Baroda Advance against Gold Jewellery / Ornaments
i.e. Rs. 250 per lac.
4. KYC Norms to be strictly complied with.
5. Sanctioning Authority to ascertain and ensure that the person offering
the Gold Ornaments as security is the actual owner of the ornaments and to
make record of this fact in the appraisal note.
6. As the gold is highly price sensitive, branch to ascertain the value of
ornaments on Quarterly basis and ensure that necessary margin is
maintained. If required, limits may be reduced to maintain the margin and
borrower may be advised to restrict his drawings upto revised limit.
7. Branches to use the services of the Assayer already empanelled for
Baroda Advance Against Gold Jewellery/Ornaments and charges to be paid
@250/- per lac and in the multiples thereof, as applicable for Baroda
Advance Against Gold Jewellery/Ornaments
8. As per revised security norms, Gold coins (specially minted and sold
by Banks) can now be accepted as primary/collateral security.
Detailed guide lines as per circular no Bcc/Br/102/264 20.09.2010
Test of understandings
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Q1. Minimum amount of loan which can be availed in Baroda traders loan against
gold is Rs. ------(a)
Rs.0.25lac
(b)
Rs.0.50lac
(c)
Rs 2.00lacs
(d)
Rs.3.00lacs
(e)
Rs.5.00lacs
Q2. The maximum amount which can be availed in Baroda Advance against gold is
Rs. ---------(a)
Rs.200lac
(b)
Rs.10.00lac
(c)
Rs 2.00lacs
(d)
Rs.50.00lacs
(e)
Rs.15.00lacs
Q3. For availing advance against gold for Rs.5.00lacs margin
is to be kept @-----%
(a)
25
(b)
15
(c)
30
(d)
35
(e)
40
Q4. Maximum repayment period which can be given in Baroda traders scheme
against gold is ---------- months.
(a)
60
(b)
30
(c)
35
(d)
36
(e)
48
Q5. What kind of gold coins are eligible to give loan against them?
(a)
Any gold coin
(b)
Purchased from overseas
(c)
Purchased from any goldsmith
(d)
Purchased from Tanishque
(e)
specially minted and sold by Banks
Answers of questions
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Q
A
1
b
2
b
3
d
4
a
5
e
COVERAGE OF EXPENSES:
Fees payable to college / school / Examination / Library / Laboratory fee / Fee
and other charges payable to hostel / Purchase of books / equipment /
instruments /uniforms / Personal Computers / Laptops wherever required.
Caution deposit / building fund / refundable deposit supported by institution
bills / receipts. Cost of external coaching / tuition is not to be considered.
QUANTUM OF FINANCE:
Need based finance subject to repayment capacity of parents. Maximum Rs.
4.00 Lac. Loan for stage II can be considered even though loan sanctioned
earlier for stage I is outstanding, or loan for Stage III can be considered even
though loan sanctioned earlier for Stage II is outstanding subject to repaying
capacity and provided the loan account for previous stage/s is/are conducted
satisfactorily.
MARGIN: Nil
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REPAYMENT PERIOD:
Loan for each yearly sub limit is repayable in 12 equal monthly Installments.
First installment to be due 12 months after first Disbursement of each years
loan component.
REPAYMENT CAPACITY:
Total deductions from the income including the proposed installment and
interest should not exceed 60% of total income.
No documentation & processing charges. No exchange on Drafts issued in
favor of school or student.
FINANCING BRANCH: Loan may also be considered at the place of posting /
service of the parent after obtaining and recording the proof of permanent
residence for future reference.
SECURITY:
No tangible / collateral security. In case the loan is given for purchase of
computer the same is to be hypothecated to the Bank.
DISBURSEMENT:
Directly to School / Institution / hostel term wise / year wise. Directly to
bookseller / shop for purchase of books, instruments, equipments.
DETAILS OF EXPENSES:
The details of expenses to be obtained from college / school / institution. In
case such details are not furnished by the school authorities suitable
declaration from parents be obtained and carefully examined / satisfied.
PROGRESS REPORT:
Progress report to be obtained at regular intervals and kept on record.
OTHER CONDITIONS:
A stamped declaration / an affidavit confirming that no Educational loan is
availed from other banks/ institutions for the child for whom loan is sanctioned
by us and shall not avail educational loan from any other bank without obtaining
NOC from our bank during the pendency of our educational loan. No dues
certificate need not be insisted upon.
CLASSIFICATION: Priority Sector
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REPHASEMENT:
The rephasement of repayment in genuine cases be considered by the next
higher authority.
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FREEBIES:
Debit card to the student on his account.
CLASSIFICATION: Priority Sector
Note: No application for educational loan received should be rejected without
the concurrence of the next higher authority.
DEVIATION:
Deviation in respect of eligibility norms, margin, security, etc. may be allowed by
authority of one step above sanctioning authority on a case to case basis on
merits.
ADDITIONAL LOAN / ENHANCEMENT IN LIMIT:
a) Loan for higher studies in India under Baroda Gyan can be considered even
though loan sanctioned earlier under Baroda Vidya is outstanding subject
to repaying capacity and provided the loan account for previous stage/s is
/ are conducted satisfactorily.
b) If the student wants to pursue further education, additional loan /
enhancement in limit to continue further course may be considered within
the overall maximum limit The additional security, if required, as per
enhancement in limit should invariably be taken e.g. Mr. A has availed
educational loan for his studies for MBBS. After completion of MBBS, he
seeks admission for M.D./ M.S., he may be granted loan within overall
ceiling limit of amount, if available. In this case, the holiday for
repayment granted initially, will stand extended further as per the
duration of the course.
FINANCING BRANCH:
Loans up to Rs. 4.00 lacs: Loan may also be considered at the place of posting
/ service of the parent after obtaining and recording the proof of
permanent residence for future reference.
Loans above Rs. 4.00 lacs: Loans may also be considered at the place of
posting / service of the parent who is either co-borrower or guarantor of
the loan as the case may be, after obtaining and recording the proof of
permanent residence for future reference.
REPHASEMENT:
The rephasement of repayment in genuine cases be considered by the next
higher authority.
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Rate of interest:
Up to Rs. 4.00Lacs = Base rate + 2.50%
Rs.4.00-7.50Lacs = Base rate + 4.00%
Above Rs.7.50Lacs= Base rate + 3.50%
Concessions:
1% Girl Student
1% For regular servicing of interest during study period.
1% to students sought admission in premier institutions viz
IIMs,IITs & AIIMS for loans more than Rs.7.50 lacs secured by
tangible securities.
Circular :BCC:BR: 104/290dt 14/08/12.
CIRCULAR REFERENCE
BCC/BR/96/380 Dated 08.11.2004 (Master Circular)
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/59 Dated 27.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/100/101 Dated 12.04.2008
BCC/BR/101/15 Dated 09.01.2009
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earlier.
PROCESSING CHARGES:
1 % to be recovered upfront which shall be refunded in its loan account , if
applicant avails loan.
FINANCING BRANCH:
Loans up to Rs. 4.00 lacs: Loan may also be considered at the place of posting
/ service of the parent after obtaining and recording the proof of
permanent residence for future reference.
Loans above Rs. 4.00 lacs: Loans may also be considered at the place of
posting / service of the parent who is either co-borrower or guarantor of
the loan as the case may be, after obtaining and recording the proof of
permanent residence for future reference.
SECURITY:
Up to Rs. 4.00 lacs: No security Coobligation of parents.
Above Rs. 4.00 lacs and up to Rs. 7.50 lacs, collateral in the form of a
suitable third party guarantees.
Above Rs. 7.50 lacs Collateral security equal to 100% of the loan amount or
suitable third party guarantee along with the assignment of future income
of the student for payment of installments.
NOTE: The document should be executed by the student and the parent /
guardian. The security can be in the form of land / building / Govt. securities /
Public Sector Bonds / Units of UTI, NSC, KVP, LIC policy, gold, shares /
debentures, bank deposit, Relief Bonds, etc. standing in the name of student /
parent / guardian or any other third party with suitable margin. Margin on
securities to be considered as per extant guidelines. Wherever the land /
building is already mortgaged, the unencumbered portion can be taken as
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security on 2nd charge basis provided it covers the required loan amount. In
case the loan is given for purchase of computer the same to be hypothecated to
the Bank. Regarding assignment of future income of the student, branches are
requested to obtain a stamped letter of undertaking as per proforma given by
the Bank.
No application for educational loan received should be rejected without the
concurrence of the next higher authority.
DISBURSEMENT:
The loan to be disbursed in stages as per the requirement / demand directly to
the institutions / Vendors of Books / equipment / Instruments to the extent
possible. Send covering letter along with disbursement Demand Draft / Bankers
Cheque to the proposed college / university of admission informing college /
university authority about sanctioning of education loan to the student. Request
the college authority to inform us, in case of suspension / dismissal /
postponement of attending class by the student. Obtain acknowledgement of
letter from the college / university and keep on record.
PROGRESS REPORT:
Progress Report to be obtained at regular intervals and be kept on record.
OTHER CONDITIONS:
A stamped declaration / an affidavit confirming that no Educational loan is
availed from other bank / institutions for the student for whom loan is
sanctioned by us and shall not avail educational loan from any other bank without
obtaining NOC from our bank during the pendency of our educational loan be
obtained. No dues certificate need not be insisted upon.
FREEBIES:
Drafts in foreign currencies drawn on our branches / subsidiaries required in
favour of college / University / Student will be issued free of exchange /
commission.
ADDITIONAL LOAN / ENHANCEMENT IN LIMIT:
If the student wants to pursue further education, additional loan enhancement
in limit may be considered within the overall-ceiling limit. In this case, the
holiday for repayment granted initially, will stand extended further as per the
duration of the course.
CAPABILITY CERTIFICATE:
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Branches can also issue the capability certificate for students going abroad for
higher studies. For this, financial and other supporting documents may be
obtained from applicant, if required. (Some of the foreign universities require
the student to submit a certificate from their bankers about the sponsors
solvency / financial capability, with a view to ensure that the sponsors of the
students going abroad for higher studies are capable of meeting the expenses
till completion of studies.)
REPHASEMENT:
The rephasement of repayment in genuine cases be considered by the next
higher authority.
CLASSIFICATION OF ADVANCE: Priority Sector.
CIRCULAR REFERENCE
BCC/BR/96/380 Dated 08.11.2004
BCC/BR/97/015 Dated 24.01.2005
BCC/BR/97/117 Dated 27.04.2005
BCC/BR/97/061 Dated 16.06.2005
BCC/BR/96/182 Dated 03.05.2004(Regarding DLP)
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/59 dated 27.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/99/310 Dated 12.10.2007
BCC/BR/99/321 Dated 25.10.2007
BCC/BR/99/322 Dated 29.10.2007
BCC/RB/100/210 dated 15.01.2008
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/100/101 Dated 12.04.2008
BCC/BR/101/15 Dated 09.01.2009
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QUANTUM OF FINANCE:
1.
Need bases finance, subject to repayment capacity of the applicant,
based on expected income after course completion.
2.
Maximum Loan:
(i)
Courses within India: Rs. 10 lacs
(ii)
Courses Abroad: Rs. 20 lacs
MARGIN: 15 % (Scholarship / Assistantship received if any, should not be
included in margin)
REPAYMENT PERIOD:
Loan to be repaid in maximum 60 EMIs.
Repayment Holiday: Course period + 6 months or 3 months after getting a job,
whichever is earlier.
PROCESSING
&
DOCUMENTATION
CHARGES: As
per
Circular
No.BCC/BR/99/321 dated 25.10.2007
SECURITY:
1.
Advance to be secured by way of 100 % tangible collateral security in the
form of mortgage of property, Assignment of securities like NSCs, KVPs,
LIC Policies and Government Bonds etc.
2.
Assignment of Future income of the applicant.
3.
Personal Guarantee of Father / Mother of the applicant or any other
person having sufficient worth.
DISBURSEMENT:
Directly to the Institute / University, as per schedule specified. Fees already
paid may be reimbursed against original receipt, within one year only.
SANCTIONING BRANCH:
Branch, which is in close proximity to the permanent place of residence of the
applicant / parents.
OTHER CONDITION:
Periodical (Yearly / Half Yearly) Progress Report to be obtained and kept on
record.
CIRCULAR REFERENCE
BCC:BR:99:358 Dated 06.12.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009
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6- 1 year
More than a year
Rs.75000/=
Rs.150000/=
Margin: Nil
Repayment;
Moratorium
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Q
A
1
e
2
a
3
e
4
d
5
c
For purchase of any new four wheeler, Car, Jeep, Station Wagon etc. and
Two Wheeler for private use.
For purchase of second hand car / Two Wheeler ( not more than 3 years
old )
TYPE OF FACILITY :
Term Loan
ELIGIBILITY:
Limit :
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New Vehicle
:
Rs. 15.00 lacs,
For HNIs / Corporates
:
Rs. 100 lacs
[HNIs means individuals with minimum monthly salary of Rs. 1.25 lacs
and carry home salary should be atleast 40% ( inclusive of proposed
deductions ) whereas Corporate means having minimum tangible net
worth of at least 10 times of the loan requested shall be considered
under the scheme.]
Old Vehicle : Rs. 10.00 lacs,
Subject to
24 times of gross monthly income for salaried persons
3 times of gross annual income ( average ) for others
For Two Wheeler
:
Rs. 1.00 lac or 5 times of gross monthly income
whichever is lower subject to repayment capacity.
Margin :
Old Vehicle
- 40%
Two Wheeler
- 10% on invoice value
PROCESSING & DOCUMENTATION CHARGES:
Car Loans
Up to Rs. 15.00 lacs
- 0.75 % Maximum Rs.10000 +Service
Tax (ST)
Limit over Rs. 15.00 lacs - 0.50 % of loan amount with a Minimum
Rs.10000 + Service Tax, No maximum.
Two Wheeler
2 % of Loan amount minimum Rs. 250/- + ST
REPAYMENT:
New Car
Second Hand Cars
Two Wheeler
84 EMIs
36 EMIs
- 60 EMIs
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Income
Up to Rs.20000
Rs20000- 100000
Above Rs.100000
SECURITY:
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OTHER CONDITIONS:
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POWER OF DEVIATION:
Powers of Financial Deviations which have a direct impact on Profit & Loss
A/C of Bank shall not be exercised below the level of BCC. However non
financial deviations may be considered by a Regional head
CIRCULAR REFERENCE
CO/ BR/90/194 Dated 28.12.1998
CO/ BR/94/092 Dated 11.04.2002
BCC/BR/94/317 Dated 21.12.2002
BCC/BR/95/150 Dated 29.04.2003
BCC/BR/96/081 Dated 28.02.2004
BCC/BR/96/102 Dated 09.03.2004
BCC/BR/97/195 Dated 03.08.2005
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/264 Dated 20.09.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/99/310 Dated 12.10.2007
BCC/BR/99/321 Dated 25.10.2007
BCC/BR/99/322 Dated 29.10.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009
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Test of understandings
Q1. Power of deviation related to the issue of affecting profit & loss in case of
retail lending rests with;
a)
Regional head
b)
Deputy Zonal Head
c)
Zonal Head
d)
M.C.B
e)
General Manager(retail),B.C.C
Q2.Maximum car loan which can be given for an old car is;
(a)
Rs.5.00lacs
(b)
Rs.10.00lacs
(c)
Rs.15.00lacs
(d)
Rs.2.00lacs
(e)
Rs.12.00lacs
Q3. The margin at on road price while financing car (amount above Rs.15.00lac)
to be kept @
(a)
15%
(b)
20%
(c)
25%
(d)
10%
(e)
30%
Q4. A salaried person applies for car loan with gross monthly as Rs.1.20lac;his
repayment capacity is to be ascertained @------(a)
60%
(b)
50%
(c)
70%
(d)
40%
(e)
30%
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Q5. The fees to levied on acceptance of deviation from the party @ Rs.3000/
per deviation subject to maximum amount of Rs.---------- in case of retail
lending
a)
5000
b)
6000
c)
10000
d)
9000
e)
15000
1
e
2
b
3
b
4
c
5
c
Baroda
Baroda
Baroda
Baroda
Baroda
Baroda
Baroda
Personal Loan
Vaibhav Laxmi
Loan to Pensioners
Loan to Defence Pensioners
Loan for Earnest Money Deposit
Loan for Consumer Durables
Loan for Laptop and PCs
For the convenience of the readers the salient features of the scheme as
mentioned above are detailed as under:
PURPOSE:
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ELIGIBILITY:
LIMIT:
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RATE OF INTEREST:
Loan to pensioners/defense
pensioners:
Loan to earnest money deposit:
Baroda personal Loan
:
REPAYMENT:
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SECURITY:
A copy of undertaking from employee ( for salaried persons ) authorizing
the employer to deduct from the salary monthly loan installment and
remit the same to the bank for the credit of loan account and also to
deduct from the terminal benefits, the outstanding loan amount with
interest. A copy of the said undertaking duly acknowledged by the
employer has to be kept on branch records.
Where the assets are created out of Bank Loan and no tangible collateral
securities are available, DLPs of clean loans shall be exercised by the
sanctioning authority.
POWER OF DEVIATION:
Powers of Financial Deviations which have a direct impact on Profit & Loss
A/C of Bank shall not be exercised below the level of BCC. However non
financial deviations may be considered as per powers delegated.
OTHER CONDITIONS:
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CIRCULAR REFERENCE
BCC/BR/95/225 Dated 07.07.2003
BCC/BR/95/264 Dated 06.08.2003
BCC/BR/96/022 Dated 16.01.2004
HO /BR/96/067 Dated 22.03.2004
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/99/310 Dated 12.10.2007
BCC/BR/99/321 Dated 25.10.2007
BCC/BR/99/322 Dated 29.10.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009
BCC/BR/95/162 Dated 07.05.2003
BCC/BR/96/022 Dated 16.01.2004
BCC/BR/98/112 Dated 02.05.2006
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(d)
4 times
(e)
6 times
Q4. Who is not eligible for personal loan among the following persons?
(a)
Employee of a corporate
(b)
Partner of partnership firm
(c)
Salaried person
(d)
Self employed person
(e)
Insurance Agent
Q5.Loan for earnest money deposit to be repaid lump sum within a period of ---(a)
12 months
(b)
06 months
(c)
24 months
(d)
36 months
(e)
48 months.
Answers of the questions
Q
A
1
a
2
b
3
e
4
b
5
b
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MARGIN:
Loans up to Rs. 5 lacs (where no collateral is stipulated): 25%.
All other cases: 15% of the cost of project / equipment.
Working Capital: NIL
ASSESSMENT OF CREDIT LIMIT:
Development of clinic / Clinic-cum-residence, Nursing Home, Pathological
Laboratory / Purchase of medical / diagnostic equipments.
Need based finance as per the project, subject to economic viability of the
same and generation of sufficient income to service the repayment obligations.
Working Capital: 10% of projected gross income.
While assessing credit requirement, the repaying capacity of the
prospective borrower based on expected income would be considered.
SECURITY:
Upto Rs. 5 lacs NIL
Hypothecation of assets created out of the loan.
Guarantee of a third party having adequate means i.e. having minimum net
worth equal to loan amount, shall be obtained.
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PERIOD:
Overdraft (for Working Capital)
12 months subject to annual review.
(For renewal of the account, declaration of annual income shall be obtained and
kept on record. Stock statement shall be obtained once a year as of last of
February every year.)
Demand Loan / Term Loan:
60 months including moratorium period of 6 months.
The amount shall be repayable in EMI commencing after one month of
completion of project/ maximum moratorium period shall be recovered as
and when debited in the account.
DSCR of 1.25 may be accepted for ensuring repayment capacity in case of
demand/ term loan.
DOCUMENTS:
In case of Term / Demand Loan:
1.
D.P. Note (as per the constitution of the borrower)
2.
Letter of installment with acceleration clause.
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3.
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1.
2.
3.
4.
5.
6.
7.
8.
1.
Borrowers to route the income through their Overdraft/ Current A/c (In
case of loan) with the branch.
If Government Bonds/ National Saving Certificates / Life Insurance
Policies / Bank Deposits are offered as security, banks extant
guidelines/norms to be followed for noting / registering the lien /
assignment.
Borrowers will not be considered for financial assistance both under this
scheme as well as under our usual scheme of financing Professional & Self
Employed persons.
However, existing loan accounts of Self Employed & Professional persons
who are eligible under this scheme can have the facilities transferred to
this scheme.
Inspection of securities to be carried out once in a year and inspection
report is to be kept on record.
Pre-sanction inspection to be conducted and report to be kept on record.
Obtaining of financial statements i.e. Balance Sheet and profit & Loss
account is dispensed with. However, to determine eligible loan amount
declarations about annual sales/ income supported by Returns /
Assessment of Sales Tax / Service Tax/ Income tax etc. be obtained and
kept on record.
Where security is in the form of our Banks FDR, the same should be
appropriated in case of default in servicing interest for one quarter and
account getting classified as NPA.
Branch to endeavor to display banks name as financier from publicity angle.
INSURANCE:
Vehicles / Property mortgaged should be got insured as per banks norms.
Obtaining Insurance against the immovable assets created out of bank loan
shall also be a condition for sanction of the facility. However, branches
may counsel their borrowers to have their machinery/ equipment/
inventory insured at their cost, in their own interest.
OTHER PROVISIONS:
Request of Doctors for car and clean loans may be considered under our
existing products i.e. Baroda
Car Loan, Baroda personal, as per the terms and condition of the products.
A doctor may avail more than one advance (i.e. car loan, clean loan including
loan under this product,
however, while considering car / clean loan it should be ensured that total
deductions including the proposed EMI should not exceed 70% of gross
monthly income.
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a)
b)
c)
d)
e)
Q5.For loan of Rs.5.00lacs & above to a doctor ,his unit should have been
established since last ----------.
(a)
03 years
(b)
06 months
(c)
1 year
(d)
2 years
(e)
No such condition
Q
A
1
b
2
a
3
a
4
c
ELIGIBILITY:
LIMIT:
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5
a
Minimum Amount :
For Public
- No ceiling
For Staff
- 5 times of gross salary
RATE OF INTEREST:
Loan: Base Rate + 3.50% or 0.50% over rate of interest on NSC
whichever is higher
Over draft: Base Rate+ 4% or 0.75% over NSC rate which eve is
higher
In case of staff - 0.5% over NSC rate
Weight age average method is applied if NSCs on different interest rates.
Concession in rate of interest on loans/overdrafts is available as under
Loans
Overdrafts
< Rs. 1 crore 2% over Base Rate
2.5% over Base Rate
> Rs. 1 crore 1.75% over Base Rate 2% over Base Rate
MARGIN:
Public :
10 % of face value
PROCESSING CHARGES:
Rs. 100/- flat + out of pocket expenses and actual conveyance charges +
service tax, Nil for staff.
REPAYMENT PERIOD:
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Loan :
SECURITY:
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ELIGIBILITY:
LIMIT:
Minimum Amount :
RATE OF INTEREST:
Loan: Base Rate + 3.50% or 0.50% over rate of interest on KVP whichever
is higher
Over draft: Base Rate+ 4% or 0.75% over KVP rate which eve is higher
MARGIN:
Public :
PROCESSING CHARGES:
Rs. 100/- flat + out of pocket expenses and actual conveyance charges +
service tax, Nil for staff.
REPAYMENT PERIOD:
Loan :
Overdraft :
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SECURITY:
OTHER CONDITIONS:
ELIGIBILITY:
LIMIT:
Minimum Amount :
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RATE OF INTEREST:
LOAN: Base rate + 3.50%
OVER DRAFT: Base rate + 4%
MARGIN:
PROCESSING CHARGES:
Rs. 100/- flat + out of pocket expenses and actual conveyance charges +
service tax, Nil for staff
REPAYMENT PERIOD:
SECURITY:
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other conditions:
ELIGIBILITY:
Minimum Amount :
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Overdraft
- Rs. 20,000/Maximum Amount : No ceiling
RATE OF INTEREST:
LOAN: Base rate + 3.50%
OVER DRAFT: Base rate + 4%
MARGIN:
Rs. 100/- flat + out of pocket expenses and actual conveyance charges +
service tax, staff - Nil
REPAYMENT PERIOD:
Loan :
Option I Repayment in maximum 35 EMIs or within the maturity period,
whichever is less.
Option II Repayment of principal with interest, at the time of maturity
out of proceeds of the instrument subject to a provision that in such
cases the margin would be minimum 20%.
Overdraft :
Till maturity of the security. In case of overdraft, if the credit turnover
in the account in the preceding month is not adequate to cover the
interest debited, then interest debited in the account is to be recovered
separately. Reviewed annually
SECURITY:
OTHER CONDITIONS:
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K.V.P.
(a)
As per M.D.P
(b)
Rs.1.00lacs
(c)
Rs.5.00lacs
(d)
Rs.20.00lacs
(e)
No such ceiling.
Q4.While considering loan against security, against which security a term loan
(repayment more than 35 months) can be given,
(a)
N.S.C
(b)
K.V.P
(c)
L.I.C.I Policy
(d)
Relief Bonds
(e)
Govt Bonds.
Q5. The minimum amount of Demand loan which can be
sanctioned in loan against security
(a)
Rs.20000
(b)
Rs.3000
(c)
Rs.50000
(d)
Rs.25000
(e)
Rs.1.00lac
Answers of the questions
Q
A
1
e
2
e
3
b
4
c
PRODUCT NATURE:
Savings Bank Deposit within built feature of OD as per eligibility.
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5
b
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CHARGES:
Asper
Circular
SECURITY:
Third party guarantee shall be obtained. Cross guarantee may be accepted.
DOCUMENTS:
D.P. Note.
A single document shall be obtained from the customer
General form of Guarantee.
DOCUMENTS TO BE SUBMITTED BY APPLICANT:
Application Form.
Employers Certificate (Form No. 135 and 117-A are dispensed with.)
LIQUIDATION OF OVERDRAFT:
The account is to be brought into credit once in 60 days.
OTHER CONDITIONS:
The facility is to be offered to the employees of such organizations, which
are financially sound and paying the salary to its employees regularly.
The Conduct of the salary account and other loan accounts is to be
satisfactory.
Employee should not be under suspension.
After sanction of facility, the Branch to monitor the accounts by verifying
the credit of salary in the accounts each month.
All overdrafts in such savings bank account shall be reported in the weekly
FORM 153 along with balance in other overdraft accounts, as being done
in the case of TODs/ODs in current accounts.
DISCRETIONARY LENDING POWERS:
The branches may consider the proposals falling within their lending powers for
unsecured advance as per grade/scale of the Branch Head. Any proposal beyond
their power shall be referred to next authority.
SANCTION OF FACILITY:
The branch should scan salary savings bank accounts wherever the salary is
being credited since last three months and the conduct of the account is
satisfactory. The Branch Manager should satisfy himself about the
financial soundness of the employer before considering the facility.
No detailed sanction of the proposal is required to be prepared. Form. No.
117-A on borrower/guarantor need not be prepared. Simplified
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CIRCULAR REFERENCE
BCC:BR:98:182 Dated 10.07. 2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009
minimum salary for applying Baroda Salary advantage loan should be;
Rs.5000
Rs.10000
Rs.25000
Rs.2000
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e)
Rs.20000
Q2.Maximum amount of loan which can be given under the scheme of Baroda
Salary advantage
(a)
Rs.1.50lacs
(b)
Rs.1.00lacs
(c)
Rs.5.00lacs
(d)
Rs.2.00lacs
(e)
Rs.0.50lac
Q3. The Debit balance in Baroda salary advantage scheme should come in credit
at least once in ------------days.
(a)
30
(b)
45
(c)
60
(d)
90
(e)
Not required.
Q4. For availing facility of Baroda Salary advantage scheme the borrower
should maintain satisfactory salary account at least since----------months
(a)
03
(b)
12
(c)
06
(d)
24
(e)
18
Q5.Minimum length of service required for availing facility under Baroda salary
advantage scheme;
(a)
03years
(b)
12 months
(c)
06 months
(d)
02 years
(e)
18 months
Q
A
1
a
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2
b
3
c
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4
a
5
b
3.
4.
5.
6.
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CIRCULAR REFERENCE
BCC:BR:98:327 Dated 24.11.2006
Credit Rating:
The rating in all retail lending schemes is to be done as per models as given
in circular no Bcc:Br:101:311 dt 12 th Oct 2009 & decisions are to be taken
accordingly.
Discretionary Lending Powers of Retail lending:
The detail guidelines are available in BCC:BR:102:350 December 22, 2010,for
DLPs under retail lending.
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Circular No
1.
10/07/2006
2.
3.
17/12/2007
26/02/2008
12/04/2008
5.
11/08/2008
6.
28/03/2009
12/10/2009
8.
28/01/2010
24/05/2010
10
29/07/2010
11
13/08/2010
12
20/09/2010
13
22/12/2010
14
15
28/12/2010
04/01/2011
16
13/06/2011
17
27/06/2011
18
20/09/2011
Baroda Academy
Baroda
Salary
advantage scheme
Baroda Aashray
Procedure to view on
line
ed
loan
application
Master circular Ed
loan
Master circular on
advance
against
security
Realignment
of
retail products
Credit rating model
for retail loans
Housing loan master
circular
Future
rent
receivables
Modifications
in
credit rating model
for retail loans
Education
loan
subsidy scheme
New
products
Baroda adv ag gold
& Baroda traders ag
gold
DLP for retail loan
products
Revised DLPs
Home loan margin
norms
Ed
loan
subsidy
scheme,clarifications
Introduction
of
checklist
on
compliance
of
guidelines in retail
loans
Repayment of retail
104 / 106
Bcc:br:98:182
Bcc:br:99:46
Bcc:br:100:29
Bcc:br:100:101
Bcc: Br: 100:223
Bcc:br:101:93
Bcc:br:101:311
Bcc:br:102:26
Bcc:br:102:143
Bcc:br:102:201
Bcc:Br;102:222
Bcc:br:102:264
Bcc:br:110:350
Bcc:br:102;357
Bcc:br:103:05
Bcc:br:103:163
Bcc:br:103:180
Bcc:br:103:269
19
30/11/2011
20
13/02/2012
21
14/02/2012
22
14/08/2012
23
24/08/2012
24
24/08/2012
25
28/09/2012
26
17/10/2012
27
05/11/2012
28
20/11/2012
29
03/12/2012
30
15/02/2013
Baroda Academy
loan of N,R,I by
close
relative
resident indian
Imp modifications in
Ed loan
Ed
loan
subsidy
schemeclarifications
Available
life
insurance for retail
loans
Modifications
in
AAA scheme
Master circular
Car loan
Master circular
Mortgage loan
Imp modifications in
Ed Loan
Clarifications
in
Mortgage loan
Modifications
in
Baroda adv ag gold
& Baroda traders
loan ag gold
Master circular on
Baroda traders loan
Imp modifications in
Ed Loan
Clarifications
in
retail loans & latest
rate of interest.
105 / 106
Bcc:br:103:343
BCC:BR:104:61
Bcc:br:104:62
Bcc:br;104:289
Bcc:br;104:300
Bcc:br:104:301
Bcc:br:104:334
Bcc:br:104:364
Bcc:br:104:393
Bcc:br:104:404
Bcc:br:104:430
Bcc:br;105:55
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