Professional Documents
Culture Documents
10.08 2016
In supersession of GIST:
RAD Cir.56 dated 15.07.2015
RAD Cir. 94 dated 22.12.2015 Car Loan Scheme
RAD Cir.114 dated 22.12.2015 Consolidated Guidelines
RAD Cir. 21 dated 05.04.2016
TO ALL OFFICES
3. All concerned are advised to go through the guidelines carefully and ensure
meticulous compliance of the same.
(Naveen Kumar)
General Manager
Encl: As above
Index: SCHEME FOR FINANCING PURCHASE OF CAR BY PUBLIC
ANNEXURE-I
SCHEME FOR FINANCING PURCHASE OF CAR BY PUBLIC
1. PURPOSE
To purchase:
1.1 New Car/Van/Jeep/Multi Utility Vehicle (MUV) or Sports Utility Vehicles (SUV)
1.2 Old car/van/jeep/MUV/SUV, which are not older than three years.
2. ELIGIBILITY
2.1 For private use: Individuals.
2.1.1 Joint borrowers are also eligible, i.e., parent(s)/spouse/ Earning Children.
However, out of these only one joint borrower shall be permitted. Further, in case of
joint borrowers an option be got exercised to specify the name of the applicant
borrower in whose name they want to get the vehicle registered.
2.3.2 Circle Head & above may relax the income criteria on case to case basis
considering the value of the account and the banking relations of the prospective
borrowers.
3. LOAN AMOUNT
For individuals/Proprietorship concerns:
3.1.1 25 times of Net Monthly Salary / Pension/ Income with a ceiling of Rs.100 lac
(for one or more vehicles).
3.1.2 Branch In-charges (Scale IV & above) may relax the criteria with regard to
number of times subject to monthly reporting of such cases to Circle Office.
3.1.3 Circles Heads & above may relax the criteria and sanction need based
amount within their vested loaning powers for cases falling under their powers as
well as those falling under the powers of lower authorities.
3.1.4 Income of Parent(s)/Spouse/ Earning Children can be taken into account for
determining loan amount. In such cases, the parent(s)/spouse/ Earning Children be
made co-borrower. However, out of above only one co-borrower shall be permitted
and only his/her income shall be taken into consideration for determining the loan
amount.
For Business Concerns (Corporate or Non-Corporate)
3.2.1 No ceiling of loan amount (for one or more vehicles). Sanctioning authority to
deal with such proposals as conventional term loan after being satisfied about the
earning / repaying capacity of the business concern and shall exercise powers as
specified in the Scheme.
3.2.2 Car loans financed to business concerns for personal use of their executives,
i.e., other than for use in the business, shall be outside the purview of corporate
banking and may be sanctioned by officials under their vested loaning powers, even
in cases where the existing facilities have been sanctioned by a higher authority.
4. MARGIN
4.1 For New Vehicle: 15% of on-road price inclusive of one time road tax &
insurance. CHs and above at their discretion may reduce margin to 10% in deserving
cases.
5. REPAYMENT PERIOD:
5.1 For New Car/Van/Jeep/MUV/SUV: The loan amount together with interest is
to be repaid maximum in 84 equated monthly installments comprising of principal
and interest commencing from the succeeding month.
5.2 For Old Car/Van/Jeep/ MUV/SUV: The loan amount together with interest
is to be repaid maximum in 60 equated monthly installments.
5.3 For new/old car/van/jeep/ MUV/SUV: In case of persons engaged in
agriculture & allied activities, sanctioning authority may fix repayment schedule at
half yearly/yearly intervals coinciding with the time of harvest. However, the
repayment period should not exceed 7 years (new vehicles) or 5 years (old vehicles).
5.4 CHs & above empowered to relax repayment period by 12 months for new
cars.
Further, Circle Head/COCAC & above, shall permit higher %age deduction of
NMS/I subject to Maximum 10% over & above the prescribed ceiling under
each bracket of NMS/I on individual merits of the case and after ascertaining
expenditures pattern of the prospective borrower(s), i.e., Circle Head/COCAC
& above may permit deductions of NMS/I MAXIMUM upto 50%, 60%, 60%
and 70% in the above bracket, respectively.
REGULARITY OF INCOME:
ii. For all class of borrower(s):- The regularity of income of the borrower(s) over
the entire span of loan should be clearly established before sanction of loan.
Latest salary slip, ITR (for the last three years) etc. be taken & perused.
ii. a) For Salaried class:- Latest salary slip, Form16/ITR for the last 3 years be
taken, perused and placed on record. Assessment of Loan/ Repaying capacity be
arrived at on the basis of latest salary slip. Where 3 years ITRs/Form 16 is not
available on account of lesser service period, the sanctioning authority may
consider sanction of loan provided last 12 months salary is verified either from
salary slips/form 16 or Statement of Account.
ii. b) For other than Salaried class:- While ITRs and Audited Balance Sheets for
the last 3 years of business/activity shall be taken and perused to ascertain
continuity of income, Assessment of loan/Repaying capacity be arrived at on the
basis of income as reported in the latest ITR.
However, deviation regarding availability of ITRs/ABSs may be permitted by Circle
Head/COCAC & above subject to taking of minimum 2 years latest ITRs/ABSs.
ii. c) FOR BUSINESS CONCERNS (CORPORATE/ NON CORPORATE):
Minimum DSCR should be at least 1.50:1 and Minimum Two years ITRs and
Balance Sheet to be obtained and perused.
It is advised that the prospective borrower be informed and provided the option to
choose repayment plan on ‘advance’ or ‘arrear’ basis and option regarding EMI
cheques/ECS/SI be obtained accordingly. Further, where option of NACH/ECS
is applicable the same may only be got exercised.
* The rate of interest under Fixed Rate Option shall be reviewed and re-set by
the Bank after each block period of 3 years and revised rate of interest shall be
applied from i) 1st April in respect of the loan disbursed during 1st October to 31st
March and from ii) 1st October in respect of the loan disbursed during 1st April to
30th September after expiry of each block period of 3 years.
For example, loan disbursed during 01.10.14 to 31.03.15 shall be reset on
01.04.18 and loan disbursed during 01.04.15 to 30.09.15 shall be due for resetting
on 01.10.18 and the same method will continue for loans sanctioned thereafter.
(For Car loans disbursed during 01.07.14 to 30.09.14, reset shall be done on
01.10.17.
6.1 Incumbents may allow existing Car Loan borrowers to change the option
from Fixed to Floating rate of interest and vice-a-versa. Such change of option
shall not, however, be permitted for a minimum period of one year from the date
of 1st disbursement, where after any change will be at the discretion of the
sanctioning authority & change of option shall, however, be subject to payment of
1% flat fee on the total amount outstanding in the account.
6.2 It is to ensure that under fixed rate option, ACCOUNT PEGGED field in
CBS to be set as ‘Y’ and the date until which the account is pegged is to be
entered in the field ‘PEGGING REVIEW DATE’. The significance of this field is
that during the period for which the rate of interest in the account is pegged, any
changes in the interest code will not impact rate of interest applicable to the
account.
6.3 Car loans offered under BPLR/BR system before 30.6.2010 with fixed rate
be mandatorily migrated to MCLR system on the reset date.
6.4 Further, Car Loan offered under PNB Festival Season Bonanza Offer-2010
(20.8.2010 to 31.12.2010) with fixed rate be migrated to Card rate as per Bank’s
regular Car Loan Scheme on the reset date, i.e., 01.04.2012 if not done so far.
6.5 Car Loan offered under PNB Festival Season Bonanza Offer-2013-14
(08.10.2013 to 31.03.2014) with fixed rate with reset clause of 3 years be migrated
on the reset date, i.e., 01.04.2017.
6.6 Car Loan offered under PNB Festival Season Bonanza Offer-2013-14 (from
01.04.2014 to 30.06.2014) with fixed rate with reset clause of 3 years be migrated
on the reset date, i.e., 01.07.2017.
7. Pre-payment Charges (Prepayment of the total outstanding):
7.1 As per IRMD, HO (L&A) circular No.54/14 dated 09.05.14; it has been advised
that on all term loans sanctioned to individual borrowers on floating rates, no pre-
payment charges be levied w.e.f. 07.05.2014. In case of term loans sanctioned
at fixed rate with reset clause, no pre-payment charges will be applicable from the
date of conversion of such loans in to floating rate loans, if the borrower exercises
his option for floating rate of interest, at the time of reset.
7.2 Accordingly, prepayment charges @2% on the outstanding pre-paid are to be
levied except in cases as per Para 7.1 above. However, no such charges to be
recovered in the following cases:
7.2.1 Where the loans are prepaid by the borrowers from their own sources.
7.2.2 Where the borrower shift to other bank within 30 days from the date of
issuance of circular for upward revision in the rate of interest to be charged in his
account or change in other terms of sanction.
7.3 Branches while conveying the sanction to the borrower (s) in respect of term loan
(s) sanctioned, should incorporate about the levy of pre payment charges in the
sanction letter.
10.1.1 Permanent Employees of Central Govt. /State Govt. /PSUs/ MNCs/ Listed
Companies at BSE or NSE (whose Shares are actively traded and quoted above
par).
10.1.2 For other than salaried class borrower(s) where ex – showroom cost of the
car is exceeding Rs.6.00 lacs.
10.2 In all other cases: Third Party guarantee/ Collateral Security acceptable to the
Bank.
10.3 Incumbents of Branches headed by Scale IV & above may waive the
guarantee / collateral security on merits of each case.
13.1 Where the loan account is running regular the requirement of periodical
Inspection, including obtaining of PNB 551, may be done away with.
13.2 For irregular accounts and accounts under NPA category, the inspection be
done on quarterly or at such shorter intervals as the situation demands and PNB
551 to be obtained on half yearly basis.
13.3 However, the requirement of first verification of vehicle will continue to be
mandatory.
13.4 In case vehicle is not produced for inspection, immediate action against the
borrower be initiated to safeguard Bank’s interest.
14.2 Margin: CHs may reduce Margin upto 10% of on-road price.
14.3 Repayment Period: CHs and above may relax repayment period further by
12 months from the existing 84 months in case of new Cars.
14.4 Guarantee: Guarantee of spouse, if employed/earning, OR third party
guarantee acceptable to bank.
No guarantee required:
i. If take home pay is more than Rs.30,000/ p.m.
OR
ii. If there is no default in repayment of EMI in home/personal loan for the past
three months, if any, availed from PNB.
(Bulk business would imply a minimum of 5 car borrowers from the same
organization at one time (within a calendar quarter).
15. DOCUMENTATION:
The following documents to be obtained:
• Application– cum – appraisal / sanction Form – PNB 1055/2013.
• Proforma Invoice.
• Letter of Sanction.
• Letter of Hypothecation – PNB 910/2014.
• Irrevocable letter of authority from borrower authorizing the employer to remit
salary/installment and other amount payable to the Bank cum letter of
acknowledgement from employer–Form -PNB 1134/2011.
• Guarantee Deed (wherever applicable) Form - PNB58.
• At location where NACH/ECS/RECS (Debit) is not available - Recovery/
Repayment of EMIs in Car loan accounts be considered through PDCs
/Standing Instruction. Mandate of the customers for debiting their accounts
through Advance cheques (CTS-2010) signed by the borrower repaying
monthly instalments under the cover of letter be obtained. Such Post dated
advance cheques should be obtained of that account whose statement of
account is obtained and not of our Bank where a shadow account is opened
just for getting cheque book.
OR
• At location where NACH/ECS/RECS (Debit) is available - Recovery/
Repayment of EMIs in Car loan accounts be considered only through ECS/
RECS (Debit) mandate of the customers for debiting their accounts.
All documents relating to Car Loan scheme are also available on PNB Knowledge
Centre. A booklet containing all the documents is also available on e-circular site
and can be navigated as:
PNB Knowledge Centre => Branch kit => Branch Ready Reckoner => Booklets =>
All => Scheme for Financing Purchase of Car by Public.
17.1.1 The service charges to be paid to Car dealers/ their sales executives be made
through crossed bankers cheque by debiting the existing expenditure head “other
expenses” – Service Charges payable to Car Dealers under Tie-up (code
no.1142224) with the amount. It be ensured to make the entry in the expenditure
head strictly as per narration as under:
Loan account no.(Sixteen digit) /Car dealer code maximum four alpha character i.e.
MARU, HYUN, TATA, MAHI, HOND, ICML, OTHE.
17.2 Bank is presently having tie up with Maruti Suzuki India Ltd; Hyundai Motors
India Ltd, TATA Motors, Mahindra & Mahindra, Honda, Force Motors and ICML.
(Further, Circle Heads have been vested with powers to enter into tie-up with
local car dealers).
18. GENERAL:
18.2 The intending borrower will be required to deposit the difference of the cost of
the vehicle and amount of loan and bank will pay the entire price of the vehicle to the
seller direct on behalf of the borrower. Advance, if any, paid for booking of the
vehicle shall be taken as a part of margin.
18.3 Driving license of the borrower may not be insisted upon. An undertaking that
the vehicle would be driven by a valid driving license holder to be obtained.
18.4 b). For Prospective Borrowers dealing with other Banks/FIs- The track record of
at least one year of prospective borrower/ co-borrower, dealing with other banks/ FIs
and willing to avail loan from our Bank must be thoroughly verified before making the
advance. Further, the genuineness of documents including Bank A/c statements etc.
to be obtained for this purpose shall also be ensured invariably, besides conducting
other checks such as CIBIL database check- up, KYC norms etc and fulfilling other
requirements of the scheme.
2. Father’s/Husband’s Name
3. (i)Address a) Residence Present*: ____________________________________
____________________________________
. City/Location_________________________ Recent Self Attested
District ______________________________ Photograph of the
Pin Code ____________Country__________ applicant
b) Office ___________________________________
____________________________________
City/Location_________________________
District ______________________________
Pin Code ____________Country__________
Income in Last 3years(Rs.) Current Year: Last year : Year before last :
(b) If Salaried He/she works for ❏Govt./Public Sector ❏ Public Ltd.Co. ❏ Private Ltd.Co. ❏ Others
Salary account with PNB Yes/No, If yes, 16 Digit account no. and if no details of Salary Account
with Bank, Branch and Account No.
____________________________________________________________
Name of the employer ______________________________ Address ______________________
______________________
Years with current employer ________Years ; Since when: _______ ______________________
______________________
Years with previous employer(s) _____ Years; From ________ To ________
Reference 1 Reference 2
28. I/We request for sanction of loan of Rs. _____________for purchase of ____________________ (name of vehicle)
on the basis the basis of information given above.
It is declared that:
The information given in the loan application is true and nothing has been concealed. The undersigned undertakes to
inform the Bank any change in my residence / office address and to provide any further information that the Bank may
require. The undersigned has been informed of the charges / fee to be levied by the Bank and agrees to pay upfront fee,
documentation charges, etc. as applicable and charged by the bank. The undersigned hereby agree to be bound by these
terms and conditions or by the revised additional terms and conditions which may at any time hereafter be made while the
loan obtained by me/us is still outstanding
I/We have read and have been advised the terms and conditions relating the scheme for
financing____________________________________(name of the vehicle) and I/We hereby agree to be bound by these
rules or by the revised additional terms and conditions which may at any time hereafter be made while the loan obtained
by me/us is still outstanding.
In case the loan is sanctioned I/We authorize Punjab National Bank, BO: ___________________________________ to remit
the total cost of vehicle to M/s ________________________________________________. I/We have deposited/agreed to
deposit with the bank the difference between the total cost of vehicle and the amount of loan sanctioned and also agree to
comply with all other prescribed formalities and also agree to pay processing charges as applicable and charged by the bank.
Yours faithfully,
Note: All columns of the form should be properly filled up and supporting documents duly signed by applicant wherever
required should be attached, particularly those marked with a *. If there is a co-applicant, he/she should fill up another form. If
there is guarantor, he/she should also fill up the guarantor information (Part II)
Part – II Guarantor information
1. Name
__________________________________________
b. Office. _____________________________________________________________
_____________________________________________________________
_____________________________________________________________
Location/City__________________________________________________
District ________________ Pin Code___________ Country___________
d. E-mail Id _____________________________________________________________
e. Mobile _____________________________________________________________
15. (a)If Self His/her firm is ❏Proprietorship ❏Partnership ❏Pvt. Ltd. Co. ❏ Others
Employed/ Years in Business
Professional Total Income in Last 2 yrs(Rs.) Last year: Year before last:
(b) If He/she works for ❏Private sector ❏Public sector (including govt. enterprise) ❏ Others
Salaried Designation _____________________________________________________________
Name & Address of the
employer _____________________________________________________________
Years with current employer _____________________________________________________________
Salary a/c with PNB Yes/No, If yes, 16 Digit account no. and if no details of Salary Account
with Bank, Branch and Account No
_____________________________________________________________
Land
Bank Building
Employer Movable properties:
Provident fund Cash
Relatives and friends Deposits with banks
Others Investment in govt. Securities
Others
Total Total
Net Worth (Actual
in Rs.)
(Enclose photocopies of documentary evidence in support of the above)
17. Having fully apprised myself of the particulars submitted in loan application dated ________________for
______________________________ (mention purpose ) loan of Rs.. __________________________ to be
considered by the Bank to Shri/Smt./Miss_______________________________________________________
______________________________________________________________________________________________
____________________________________________________________________________________Son/Wife/Da
ughter of Shri___________________________________________________________________
______________________________________________________________________________________________
______________________________________________________________________________________________,
I have agreed to furnish my guarantee for repayment of the loan. I hereby declare that I know the above mentioned
applicant (s) very well for the last _________ no. of years. The information furnished by me is true and correct to the
best of my knowledge & belief.
Date:
Place:
FOR OFFICE USE ONLY: BO _______________.
PNB Score ID :________________________PNB Score_______________
Date:
PNB 1055/2011
BO: __________________________ (D. No. __________)
Date: ____________
To,
_______________________
_______________________
_______________________
Primary
Collateral
Thanking you.
Yours truly,
For Punjab National Bank
Authorised Signatory
(Revised)
LETTER OF HYPOTHECATION
(FOR CAR LOAN)
Place---------------
Date----------------
The Manager,
Punjab National Bank,
..........................................
Dear Sir,
In consideration of the Bank allowing/ agreeing to allow an advance by way of term loan
of Rs._______________
(`____________________________________________________) (the “Loan”) for
purchase of _________________________________________________(mention the
name and description of the vehicle, its make and registration etc.), I/We
________________________________________________________________
(name/s) son/daughter/wife of Shri__________________________________________
resident of
______________________________________________________________________
______, (hereinafter referred to as the “Borrower” which shall, unless the context
otherwise requires, include his successors and assigns), hypothecate to the Bank the
vehicle ( the “Hypothecated Vehicle”) as security for the payment of the Loan along
with interest, cost and other charges. (The term Borrower, in case there is more than
one borrower, shall include each one of them in which case their liability shall be JOINT
& SEVERAL).
1. The Bank is authorized to disburse the Loan direct to the vendor, whose
bonafides have been verified by the Borrower, together with the contribution/margin
money which has already been deposited with the Bank and the Bank will not be liable
for any misdeed, wrongdoing or deficiency in service and/or in the vehicle on the part of
the vendor.
2. The Hypothecated Vehicle shall be used for personal use and will not be sold,
given on lease or on hire or otherwise parted with the possession or encumbered in any
way till the repayment of the Loan.
3. (i) The Borrower agrees that the amount of the Loan together with interest will be
paid by him regularly in ________ number of Equated Monthly Installments (the "EMI")
of `____________ (`_______________________________) comprising of principal
and interest and the first EMI shall become due for payment commencing
___________________________.
The amount of EMI shall be subject to change in accordance with the change/revision in
the Applicable Interest Rate to be charged in the Loan account, in which event, the
borrower shall exercise one of the following options for repayment of the Loan :
4. *(i) The Borrower irrevocably authorizes the Bank to recover the amount of EMI
and other charges from his SF/CA /OD accounts no._____________ maintained at the
Bank’s BO: _________________ until the Loan is fully repaid and adjusted. The
Borrower further undertakes to keep sufficient balance in his said account for recovery
of the EMI by the Bank.
*(ii) The Borrower agrees to authorize his employer to remit his salary to the Bank’s
BO_____________ for crediting to his above account.
*(iii) The Borrower hereby deposits post-dated cheques to facilitate the due payment
of the EMIs of the Loan as per the Schedule hereunder.
*(iv) The Borrower is willing to make the payment of EMIs of the Loan, through
participation in Electronic Clearing Service (ECS) of National Clearing Cell of RBI and
authorizes the Bank to raise the debits against the EMIs from his SF/CA/OD account
No.__________ maintained at BO:_________________________ of
____________Bank (Give name and address of the Bank) through ECS for repayment
of the Loan and understands that in the event of the Bank not realizing payment from
ECS for any reason whatsoever, the Borrower shall pay the EMI to the Bank by cash
or cheque along with the interest for the delayed period.
The Borrower has given the necessary mandate/will comply with the procedural
requirements for participation in ECS and also bear any service charges/fees as
prescribed by Bank/RBI from time to time.
To facilitate collection of the EMIs in the event of non-receipt of the EMIs by ECS, the
Borrower has provided the Bank with ______number of undated cheques for the
amount of the EMIs. The Borrower authorizes the Bank to fill up the dates as and
when required, but without being bound, to collect the cheques to meet defaults in
payment of the EMIs.
*Delete, if not applicable.
5. The Borrower agrees that in case the Loan is pre-paid by availing loan from other
bank/FI, he will bear and pay the prepayment charges at ___% of the outstanding
amount of the Loan pre-paid.
6. Notwithstanding the above, in case the Borrower fails to pay any three EMIs (not
necessarily consecutive) or in the case of contravention of any of the terms and
conditions herein or in case the Hypothecated Vehicle is lost or destroyed or otherwise
becomes unavailable or untraceable as a result of theft or otherwise for any reason
whatsoever, it shall be lawful for the Bank to recall by a demand in writing the entire
outstanding amount in the Loan account and the Borrower shall pay the same
notwithstanding the period of EMIs fixed as aforesaid.
7.1.1 The fixed rate of interest is valid for the period of _____years from the date of 1st
disbursement which is called ‘block period’ and it shall be reviewed and re-set by the
Bank on completion of the said Block Period. For this purpose, reset shall be done after
each block period and revised rate of interest shall be applied from 1st April in respect of
the loan disbursed during 1st October to 31st March and from 1st October in respect of
the loan disbursed during 1st April to 30th September. The revised rate of interest shall
be applied on applicable date after completion of each Block period. Any delay in
revision /re-set of rate of interest when due shall not exempt the borrower and the bank
shall be within its right to charge and appropriate the overdue amount accrued due to
variance in the rate of interest after revision / re-set. It is made clear that revised rate of
interest shall always be applicable from 1st April/ 1st October on completion of the ‘block
period’. In case of failure to re-set/revise the rate of interest despite becoming due in
the year, does not restrict or debar the bank from revising/re-setting of the rate of
interest in the next year. If interest rate is not revised/re-set in the year when it is due, it
shall be open to Bank to revised/re-set the rate of interest at any time in any subsequent
year and, in such an event, the revised interest rate shall be applicable from 1st April/ 1st
October of the year in which it is re-set for the remaining years of the block period.
7.1.2 The option of FIXED RATE OF INTEREST exercised by the Borrower shall not
be allowed to be changed for a minimum period of ____ year from the date of first
disbursement, which is called lock in period, unless the Bank otherwise agrees, on such
terms & conditions, including charging of fees on account of switch over, as prescribed
by the Bank from time to time.
7.1.3 On completion of lock in period, it is open to the Borrower to switch over from
Fixed rate of interest option to Floating rate of interest option. If no intimation regarding
change in the ‘interest rate option’ is received it shall be presumed that the Borrower
continues with his earlier exercised Option.
7.1.4 In case, the Bank allows the borrower to change the ‘Fixed Rate of interest’ to
‘Floating Rate of interest’, the rate of interest would be the prevailing ‘floating rate’ at the
time of change of option.
7.2.1 The option of the Floating Interest Rate exercised by the Borrower shall not be
allowed to be changed for a minimum period of ______ year from the date of first
disbursement, which is called lock in period,, unless the Bank otherwise agrees, on
such terms & conditions, including charging of fees on account of switch over , as
prescribed by the Bank from time to time.
7.2.2 On completion of the lock in period, it is open to the Borrower to switch over from
Floating rate of interest option to Fixed rate of interest option. If no intimation regarding
change in the interest rate option is received, it shall be presumed that the Borrower
continues with his earlier exercised option.
7.2.3 In case, the Bank allows the borrower to change the ‘floating rate of interest’
to ‘fixed rate of interest’ the rate of interest would be the prevailing fixed interest rate
at the time of change of option. The Option so exercised shall be applicable for
remaining Block Period.
7.3.2 The _____________ MCLR will be changed from time to time by the Bank
subject to the reset of interest rate after an interval of ___________ months.
7.3.3 Notwithstanding any other clause of the agreement, the Spread and the
Benchmark Rate of interest payable by the Borrower and the periodicity of rests shall be
subject to the changes/variations made by Reserve Bank of India/the Bank as the case
may be from time to time.
7.3.4 In the event of there not being any Spread and/or Reference Rate, the borrower
agrees to pay the interest at the rate as prescribed by the Bank from time to time.
7.3.5 The interest shall be calculated on daily balance basis due to the Bank and shall
be charged monthly so long as the amount due is not repaid in its entirety and shall
form part of the principal and carry interest at the Applicable Interest Rate.
8. Notwithstanding the above, if the Bank, on the request of the Borrower, in its
discretion decides to make available to the Borrower the option of application of lower
rate of interest, as applicable to fresh Loans under the Scheme, it is open to the Bank to
charge and levy a Switchover Fee at the rate prescribed by the Bank.
9. The Borrower agrees to pay additional interest at______% p.a. with agreed
rests in case of default in:
a) Payment of interest and/or any installment on the due dates, on the amount in
default from the date of default; or
b) Furnishing information as prescribed/called for by the Bank; or
c) Non-compliance of any other terms & conditions
d) Besides this, the Bank shall have the option to recall the entire outstanding and
the Borrower undertakes to pay the amount outstanding upon demand by the Bank.
10. The Borrower also agrees that in case the amount outstanding in the Loan
account is not paid by him after demand in writing by the Bank, it shall be lawful for the
Bank and its officers to call on him and take possession of the Hypothecated Vehicle.
In case of default on his part to deliver possession, it shall be lawful for the Bank and its
officers to take possession of the Hypothecated Vehicle from him and sell the same by
private contract or otherwise as pledgee / hypothecate / mortgagee for adjustment of
the Loan account at his risk and responsibility, and get the same transferred in the
name of the purchaser by signing the necessary documents without reference to the
Borrower and he undertakes to pay the amount of shortfall, if any.
11. The Borrower undertakes to keep the Hypothecated Vehicle insured for its full
value by taking comprehensive policy in the joint names of the Bank and the Borrower
with agreed Bank clause with any Insurance Company approved by the Bank. The
Borrower shall produce the relevant policy or policies of insurance along with receipt of
premia paid to the insurance company from time to time for its inspection regularly. In
case the Borrower fails to keep the Hypothecated Vehicle insured and to produce such
policy or policies and receipts to the Bank, the Bank shall be at liberty, but not bound, to
effect such insurance and pay such premia at the Borrower’s expense by debiting to the
Loan account and the amount of premia shall form part of the Borrower’s indebtedness
to the Bank under the Loan and be secured fully by the hypothecation hereby created. .
a) that upon any money becoming payable under the policy, the Bank shall be
entitled to receive the same.
b) that the receipt of the Bank shall be a complete and good discharge of the
insurance company
c) that any adjustment, settlement, compromise or reference to arbitration in
connection with any dispute between the company and the insured or any of them
arising under or in connection with the insurance policy if made by the Bank shall be
valid and binding on all parties, but not so as to impair the right of the Bank to recover
the full amount of any claim it may have on other parties and
d) that any sum received under such insurance shall be applied in or towards
liquidation of the amount due to the Bank on account of the Loan, interest and other
charges as aforesaid and in the event of there being a surplus the same shall be
refunded to the Borrower, if no other amount is due from him.
13. The Hypothecated Vehicle will be got registered with the appropriate transport
authority in the joint names of the Bank and the Borrower.
14. The Borrower agrees and hereby gives to the Bank during the currency and for
the payment of the Loan, a general lien and right to set off; and combine accounts
without notice; and charge on all movable property of every description coming into the
Bank’s possession on account of the Borrower for the time being held by the Bank on
behalf of the Borrower whether singly or jointly with others in India or elsewhere
including, without prejudice to the generality, any monies, bullion, deposits, deposit
receipts, promissory notes, bill of exchange, cheques, railway receipts, Govt. bills and
other documents/securities of every description.
15. That any demand herein may be made on the Borrower by an officer of the
Bank or any notice in writing under the hands of any such officer either served
personally on the Borrower or left at or sent by post to him at his address
registered/available with the Bank.
16. The Borrower hereby consents that in case he commits default in repayment of
the Loan, the Bank/RBI can disclose his name in such manner and through such
medium, as they deem fit. The Borrower further consents for disclosure of his name by
the Bank to any credit information company, as deemed fit.
17. The Borrower agrees not to induct any person in its board of director who has
been identified as willful defaulter as per directions/guidelines of RBI or Bank. . If any
Director who is willful defaulter as per definition above referred is on its Board, the
Borrower undertakes to get him removed from the Board. The Borrower agrees to make
necessary amendment in the Article of Association of the Borrower / Company to make
the above requirement a ground for removal of directors and furnish a copy of Articles of
Association as amended to the Bank. (This sub-clause is applicable only in case of
corporate borrower/s).
SCHEDULE
1.
2.
3.
4.
5.
Yours faithfully,
Signature-------------------------------
Name-----------------------------------
* Note: Advance cheques may be obtained under the Scheme. The number, amount
and dates of such cheques should be synchronizing with the number, amount and due
dates of term Loan installments. Such cheques should be drawn favouring ‘Punjab
National Bank” and on the reverse of the cheques, ‘payment of installment in term Loan
account No. ____ ‘can be written.
PNB 910/2014
IRREVOCABLE LETTER OF AUTHORITY FROM BORROWER AUTHORISING THE
EMLPOYER TO REMIT SALARY/INSTALMENT AND OTHER AMOUNT PAYABLE TO THE
BANK CUM LETTER OF ACKNOWLDGEMENT FROM EMPLOYER
-------------------------------------------------------------------------------------------------------------------------------
To
------------------------------------
------------------------------------
------------------------------------
Dear Sir,
The above loan has been sanctioned to me by Punjab National Bank (PNB).
I hereby authorise you to remit the amount payable to me by way terminal benefits and gratuity,
by reason of my retirement, resignation or discontinuing in the service for any reason, to PNB
BO:________________________ for crediting to my aforesaid loan account No. _________
with them.
This authority is irrevocable until the loan amount mentioned above with interest is paid in full
and written consent of the Bank is obtained.
Yours faithfully,
PLACE: ____________
ADDRESS: ____________
DATED: ____________
SIGNATURE_________________________
NAME OF EMPLOYEE__________________
PLACE :_________________
DATED:_________________
PNB 1134
AGREEMENT OF GUARANTEE
Whereas at the request of the Guarantor(s) the Bank has agreed to allow/
continue/enhance an accommodation by way of __________________ ______________
________________________________________________ to Shri/Smt/Messrs. ___________
___________________________________________ (hereinafter called ‘the Borrower(s)’) on
the terms and conditions contained ________________________________________________
___________________ AND whereas the Guarantor(s) has/have agreed to guarantee due
payment of the amount due to the Bank in respect of the said limits of `_____________
(`_________________________________________________________________).
2. The Guarantor(s) hereby guarantee(s) jointly and severally to pay to the Bank after
demand in writing all principal, interest, cost, charges and expenses due and which may
at any time become due to the Bank/from the borrower(s), on the accounts opened in
respect of the said limits (hereinafter called the said accounts) down to the date of
payment and also all loss or damages, costs, charges and expenses and in the case of
legal costs, as between attorney and client occasioned to the Bank by reason of
omission, failure or default temporary or otherwise in such payment by the Borrower(s)
or by the Guarantor(s) or any of them including costs (as aforesaid) of enforcement or
attempted enforcement of payment by suit or otherwise or by sale or realisation or
attempted sale or realisation of any security for the said indebtedness or otherwise
howsoever or any costs (which costs to be as aforesaid) charges or expenses which the
Bank may incur by being joined in any proceeding to which the Bank may be made or
may make itself party either with or without others in connection with any such securities
or any proceeds thereof.
3. The Guarantor(s) hereby declare(s) that this guarantee shall be a continuing guarantee
and remain operative in respect of each of the said limits severally and may be enforced
as such in the discretion of the Bank, as if each of the facilities / limits had been
separately guaranteed by him/her/them. This guarantee shall not be considered as
cancelled or in any way affected by the fact that at any time or from time to time any of
the said accounts may show on liability against the Borrower(s) or may even show credit
in his/her/their favour but shall continue and remain in operation in respect of all
subsequent transactions till the accounts are closed.
4. The Guarantor(s) hereby consent(s) to the Bank making any variance without reference
or notice to him/her/them, that it may think fit in the terms of contract, including any
change in rate of interest charged to the account, with the Borrower(s). The
Guarantor(s) further consent(s) to the Bank accepting additional collateral security of any
kind, determining enlarging or varying any credit to him/her/them or making any
composition with him/her/them or promising to give him/her/them time are not sue
him/her/them and to the Bank parting with any security it may hold for the guaranteed
debt. The Guarantor(s) also agree(s) that he/she/they shall not be discharged from
his/her/their liability by the Bank releasing the Borrower(s) or by any action or omission
of the Bank, the legal consequences of which may discharge the Borrower(s)
or by any act of the Bank which would, but for this present provision be inconsistent with
his/her/their rights as Guarantor(s) or by the Bank's omission to do any act which, but for
this present provision, the Bank's duty to the Guarantor(s) would have required the Bank
to do. Though as between the borrower(s) and the guarantor(s) he is/she/they are
guarantor(s) only, the guarantor(s) agree(s) that as between the Bank and guarantor(s)
he/she/they are debtor(s) jointly with the borrower(s) and accordingly he/she/they shall
not as such be entitled to claim the benefit of legal consequences of any variation in the
terms of the contract and to any of the rights conferred on a Guarantor by Sections 133,
134, 135, 139 and 141 of the Indian Contract Act. The Guarantor(s) further agree(s) that
the acceptance by the Bank of any irregular payments or any amount short of the
Amount of agreed instalment/s. whether made before or due dates or thereafter by the
Borrower(s), shall not discharge the Guarantor(s) from his/her/their liability and such
acceptance will not amount to or create any new or fresh contract. The Guarantor(s)
further agree(s) that the Bank shall be under no obligation to notify him/her/them, any
default committed by Borrower(s) at any time or from time to time.
5. The Guarantor(s) hereby consent(s) to the Bank renewing from time to time and said
_____________________ limits of `_________________ allowed to the Borrower(s)
obtaining fresh documents from him/her/them closing the existing account, opening new
accounts, or transferring the same or part thereof to any branch of the Bank.
Notwithstanding this, the Guarantor(s) agree(s) and declare(s) that he/she/they shall
remain liable to the Bank for any indebtedness of the Borrower(s) under the renewed
limit and terms and conditions of this deed shall apply and govern his/her/their liability
under the renewed limit.
6. The Guarantor(s) further declare(s) that all dividends, compositions or payment received
by the Bank from guarantor(s) or any other persons liable to him/her/them or his/her/
their representative shall be taken and applied as payment in gross and the Guarantor(s)
and his/her/their representatives shall have no right to claim the benefit of any such
dividends, compositions or payment until full amount of all claims of the Bank against the
Borrower(s) and his/her/their representatives which are covered by this guarantee shall
have been paid.
7. No advance, overdraft or other credit facilities that the Bank may give to the Borrower(s)
beyond the limit mentioned in Para No. 1 above or obtaining of any other guarantee or
security from the Borrower(s) shall determine, prejudice or lessen the liability of the
Guarantor(s) hereunder.
8. The Guarantor(s) further agree(s) that any accounts settled between the Bank and the
Borrower(s) or the balance admitted or confirmed by him/her/them or his/her/their
authorised agents as due on the said accounts to the Bank will be conclusive and shall
not be disputed or questioned by the Guarantor(s).
9. The Guarantors authorise and appoint each of the guarantors or any person duly
authorised by them as agent to confirm the balance due and acknowledge liability on
his/her/their behalf as Guarantors from time to time. The Guarantors further agree that
any acknowledgement of liability made by Borrower(s) or any person duly authorised by
him/her/them to operate account or any of the co-guarantors as agent on behalf of the
Guarantors shall be binding on him/her/them for giving fresh start of limitation and also
for admission of liability against him/her/them.
10. In case the Bank sells the hypothecated, pledged or mortgaged security/ies held in the
loan account, the Guarantor(s) agree(s) that the Bank may sell said securities without
giving any notice of such sale of the Guarantor(s). The Guarantor(s), agree(s) that
he/she/they will not question the sale or the sale price in any manner or on any ground
whatsoever.
11. In case the amount guaranteed by the Guarantor(s) is paid by the Borrower(s) to the
Bank and the Bank in consequence discharge the Guarantor(s) from all liabilities under
this guarantee, but it is subsequently determined by a Court of Law or otherwise that the
said payment was a fraudulent preference and the Bank is made to refund the said
amount, the Guarantor(s)' liability to the Bank on the basis of this guarantee shall revive
to the same extent and in the same manner as if such payment had never been made.
12. The Guarantor(s) also agree(s) that the Bank may enforce the guarantee without
enforcing, selling or realising any of the securities kept under lien, hypothecated,
pledged or mortgaged with it, notwithstanding that any bills or other instruments given by
the Borrower(s) in the said account may be in circulation for collection and outstanding.
13. The guarantee hereby given shall not be determinable or taken as satisfied by the
Guarantor(s) except on the terms of his/her/their making full payment unto the limit of
his/her/their guarantee for any then outstanding liabilities or obligations on the said
account. The guarantee shall not be affected by his/her/their death or insanity until the
Bank shall have received formal authentic notice in writing thereof.
14. If the Guarantor(s) has/have or shall hereafter take any security from the borrower(s) in
respect of his/her/their liability under this guarantee, the Guarantor(s) will not prove in
the liquidation of the Borrower(s) in respect thereof to the prejudice of the Bank and such
security shall stand as security and shall be forth with deposited with the Bank.
15. So long as any money remains owing under this guarantee, the Bank shall have lien on
all moneys standing to the credit of guarantor(s) and on any securities or goods in the
hands of the Bank belonging to any of the Guarantor(s) and the Bank shall be entitled to
appropriate/set off/realise to same.
16. The absence or infirmity in the borrowing powers on the part of the Borrower(s) or any
irregularity whatsoever in the exercise thereof shall not affect the liability of the
Guarantor(s) and any moneys advanced to the Borrower(s) shall be deemed to be due
and owing notwithstanding such absence, infirmity or irregularity and this guarantee shall
not be affected by any change in the name or constitution of the Borrower(s). It is further
expressly agreed that this guarantee shall remain enforceable against the Guarantor(s)
irrespective of the fact whether the contract between the Borrower(s) and his/her/their
creditor is enforceable at law or not. It is also expressly agreed that in case the
guarantee given by the Guarantors can not be enforced or becomes unenforceable at
law for any reason whatsoever, the guarantee given hereunder be enforced as an
indemnity against the Guarantor(s) and he/she/they agree(s) and undertake(s) indemnify
and reimburse the Bank for any loss, damages, costs and other charges which the Bank
may have to recover and realise from the Borrower(s) in his/her/their loan accounts with
it.
17. Any notice by the Bank in writing under this guarantee or a demand in writing shall be
deemed to have been duly given to the Guarantor(s) by sending the same by post
addressed to him/her/them at the address hereunder written and shall be effectual
notwithstanding any change of residence or death and notwithstanding the notice
therefore to the Bank and such demand shall be deemed to have been received by the
Guarantor(s) 24 hours after the posting thereof and shall be sufficient to prove that the
letter containing the demand was properly addressed and posted.
18. The Guarantor(s) agree(s) that a copy of account of the principal debtor(s) contained in
the Bank books of account signed by the Manager for the time being of the office at
which such accounts shall be kept or any officer of the Bank shall be conclusive
evidence against him/her/them of the amount for the time being due to the Bank from the
principal debtor(s) in any accounts or other proceedings brought against him/her them
upon this guarantee.
19. The Guarantor(s) hereby agree(s) as a pre-condition of the loan/advance given to the
borrower/s by the Bank that in case the borrower/s commit default in the repayment of
loan/advance or in the repayment of interest thereon or any of the agreed instalments of
the loan on due date(s), the Bank and/or the Reserve Bank of India will have an
unqualified right to disclose the guarantor/s names or the names of his/her/their
company/firm/unit and its respective Directors/Partners/Proprietors as defaulter/s in such
manner and through such medium as the Bank or the Reserve Bank of India in their
absolute discretion may think fit.
Accordingly, the Guarantor(s), hereby agree(s) and give consent for the disclosure by
the Bank of all or any such;
(b) the information or data relating to guarantee to secure any credit facility availed
of/to be availed, by borrower/s, and
(c) default, if any committed by Guarantor(s), in discharge of his/her/their such
obligation, as the Bank may deem appropriate and necessary, to disclose and furnish to
Credit Information Bureau (India) Ltd., and any other agency authorized in this behalf by
RBI.
Guarantor(s) declare(s) that the information and data furnished by the borrower/s to the
Bank are true and correct.
(b) the Credit Information Bureau (India) Ltd. and any other agency so authorized
may furnish for consideration, the processed information and data or products thereof
prepared by them, to Bank/financial institutions and other credit grantors or registered
user, as may be specified by the Reserve Bank in this behalf.
21. That the Guarantor(s) agree(s) not to induct a person, who has been identified as 'willful
defaulter' as per definition given as per RBI directions/guidelines or Bank's guidelines, as
a director on its Board. If any defaulter who is a 'willful defaulter' as per definition
referred to above, is on the Board of Guarantor(s), the Guarantor(s) undertake/s to get
him/her removed from its Board. The guarantor(s) agrees(s) to make necessary
amendments, if need be, in its regulations to make above requirement as a ground for
removal of directors and furnish a copy of regulation as amended, to the
Bank.(Applicable in case of Company only)
In witness whereof the Guarantor(s) and the Bank have set their hands hereunto on
__________________ day of __________ '20 _____.
GUARANTOR/S
WITNESSES:
1._______________________
_______________________
_______________________
2._______________________
_______________________
_______________________
PNB 58/2011