Hand Book On Retail Loan Products PDF

HANDBOOK ON
RETAIL LOAN
PRODUCTS
आन्ध्रा बैंक कर्मचारी र्हाविद्याऱय

Andhra Bank Staff College
कृष्णानगर Krishnanagar, र्हाराणीपेट Maharanipet
विशाखापट्णर् Visakhapatnam–530002
(आन्ध्र प्रदे श Andhra Pradesh
HAND BOOK ON RETAIL LOAN PRODUCTS

Page 1 of 78
INDEX
1 Clean Loan 3
2 Consumer Loan 6
3 Loans Ag, Govt. Securities 9
4 Vehicle Loan (including AB Vanitha Vahan) 11
Car Loans to Corporate Clients 14
5 Property Loan 15
6 AB Doctor + 23
7 AB Nightingale 25
8 AB Professional 27
9 Rent Receivable 28
10 AB Anand Jeevan- (Reverse mortgage) 31
11 Gold Loans – Non-Agriculture 36
Cash Credit / Overdraft against Gold ornaments 39
12 Educational Studies in India & abroad 40
Loans
Skill Development Courses 45
Premier institutions 47
Private Medical & Dental Colleges -Mgmt.
49
seats-AP
Commercial Pilot Training 50
Employment Abroad 50
ABCALS 51
Private Professional Colleges 51
Chandranna Videshi Vidya Deevena Scheme 52
NTR Videshi Vidyadarana Scheme 53
VIDYA LAKSHMI PORTAL 54
13 Housing General Housing Finance 55
Loans
Pradhan Mantri Awas Yojana(PMAY)- Overview 62
PMAY - Details 64
Housing Loans to NRIs 69
14 Interest rates chart for Retails Loans 75
15 Interest Rate History 76
16 Retail loans – Switch over from Base Rate to MCLR 77
17 List of important circulars 78
Staff College
Visakhapantam Dt: 15.03.2018

Page 2 of 78
CONTINGENCY (CLEAN) LOAN
Salaried persons, Pensioners drawing pension from our Branch under
Family Pension Scheme and other non-salaried and valued individual customers
पात्रता like Professionals, Self-employed persons, business people, big farmers
Eligibility etc. having repayment capacity.
Age- Pensioners - Not above 75 yrs. Due date of the loan not above 78
Yrs. & LIC Agents - Not above 55 yrs
Salaried Persons
Fresh- 12 Times of monthly gross salary. Take home pay
should not be less than 40% of the gross salary, including
Max. 50
the installment of the proposed loan
Lakh
Repeat finance/ Renewals -14 Times of monthly gross salary
Take home pay should not be less than 40% of the gross
salary, including the installment of the proposed loan
ऋण राशश Pensioners : Max. 5
Loan amount 8 Times of monthly Pension Lakh
Non-Salaried persons :
Max. 100
2 Times of average annual income basing on the income for
Lakh
the previous three years – Sanction at ZO level.
LIC Agents :
IT Assesses: 2 Times of average annual renewal
Max. 2
Commission of last 3 yrs.
Lakh
Non-IT Assesses: 50% of average annual renewal
Commission of last 3yrs.
Purpose To meet genuine credit requirements for personal purpose.
Personal security of the borrower/ coobligant. Wherever necessary the
sanctioning authority may stipulate collateral security. ECS debit mandate is
Security
compulsory, where the borrower is maintaining operative/ salary account
with other Banks.
Repeat finance After payment of 1/3rd regular installments
Good third party guarantee acceptable to the Bank.
In case of Clean loan to Pensioner, family pensioner, should be the co
obligant. In case of loan allowed to family pensioner or to a pensioner
who does not have family pensioner, suitable co obligation should be
Guarantee/ taken either from the family member or third party (who is having
Co obligation sufficient income/Networth) to the satisfaction of the Bank.
Cir no 263/53/20 dated 30.09.2016
In case of Clean loan to LIC Agents- Spouse or one of the family
members and one LIC Agent.
Net Pay 40% after proposed installment
Repayment Maximum of 60 EMI (In case of Pensioners aged above 70Yrs -36 EMI)
INTEREST RATES ON CLEAN LOANS:

Interest rates in respect of Clean loans Interest rates in respect of all others
allowed to employees of Central (Private employees, Non-salaried class
Government, State Government and Public and LIC agents etc.)
Sector Undertakings, who are drawing
salary through our Bank Branches and
Clean Loans allowed to Pensioners.
LOANS UP TO 36 MONTHS
One year MCLR + Risk premium 0.50% + One year MCLR + Risk premium 0.50%
Business strategy 2.50% + Business strategy 3.00%

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LOANS ABOVE 36 MONTHS
One year MCLR + Risk premium 0.50% + One year MCLR + Risk premium 0.50% +
Business strategy 3.75% + Term Premium 0.25% Business strategy 3.75% + Term premium
0.25%
Administrative
Processing Charges
Charges
Loan amount (At the time of processing of
(Once in every
application)
Processing & three months)
Administrative Up to 0.25 Lac Rs.250/-+ST Rs.50/-+ST
Charges >0.25-0.50 Lac Rs.500/-+ST Rs.75/-+ST
>0.50-0.75 Lac Rs.750/-+ST Rs.100/-+ST
>0.75- 1.00 Lac Rs.1000/-+ST
Rs.150/-+ST
Above 1 Lac 1% of limit. Min.Rs.5000/-+ST
Penal Interest @ 2% on the default amount will be charged for default in
Penal Interest
repayment of installments.
Pre-payment No Charges for individuals.
Depending upon age, qualification, residence stay, transferability,
Credit Rating
employment / profession, gross income, net take home pay, spouse
employment, no. of dependent, dealings with bank, loan repayment
(Cir.163/26/34
history, margin, contribution and net worth of the borrower rating will be
Dt.06.08.2010)
decided. Minimum score required is 40 out of 100.
Branches (other than Rural) have to obtain Credit Information Report
CIR (CIBIL) from CIBIL (Cir. No.238/26/9 Dt.18.10.2011)
CIBIL enquiry charges ranging from Rs.33/-to Rs.100/-+ST will be charged.
Branches with tie-up arrangement/Cap limits:
BRANCH HEADED BY AMOUNT (RS. IN LACS)
AGM 15.00
CHIEF MANAGER 10.00
SMGS III 8.00
MMGS II 6.00
Sanctioning JMGS I 5.00
Powers CLEAN LOANS TO PENSIONERS:
CHIEF MANAGER 5.00
SMGS III 3.00
MMGS II 2.00
JMGS I 2.00
No.593/51/36/25.03.2004, No.330/51/25/30.11.2004,
No.666/51/976/01.10.2004, No.235/26/30/15.10.2008.
No.239/53/13/05.09.2013, No.034/53/2/07.05.2014.
No.219/53/15/25.09.2014, No.322/53/20/11.12.2014.
पररपत्र Circular No.376/53/24/02.02.15 No.443/53/30/19.03.2015.
No.38/53/3/11.05.2015. No.39/53/4/11.05.2015.
No.85/53/9/13.06.2015 No.110/53/10/29.06.2015,
No.04/53/01/01.04.2016, No.78/53/4/24.05.2016.
No.113/53/10/21.06.2016
DOCUMENTS TO BE OBTAINED:
1. Application for Clean loan, in the prescribed format
2. DPN (AB 6/7)
3. Composite Agreement (AB 1)

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4. General form of Guarantee (if applicable) (AB 8)
CHECK LIST:
1 Borrower‟s Photo, Necessary Proof of Identity, Address proof, copy of PAN card, IT
assessments (wherever necessary), etc., are obtained to comply with KYC guidelines?
2 Prescribed application is obtained and complete in all respects with relevant

documents, including Property statements of Borrower / Co-obligant /Guarantor.
3 Credit Information form is obtained and kept on record.
4 Credit Investigation Report (CIR) submitted by Credit Investigation Officer is on record
5 Credit rating index arrived and with a minimum 40% score.
6 Contact point verification conducted wherever applicable
7 CIBIL report on the credit facilities enjoyed by the constituents as well as status of the
account is obtained
8 Guidelines regarding eligibility, Quantum of loan, Repayment period, Guarantee / Co-

obligation, Take home pay etc are followed.
9 Irrevocable Salary Undertaking Letter from the Employer to remit installments till the
closure of the loan, Letter of Authority for debiting salary with the EMI fixed in the
system are obtained
10 Proof of Income and Salary Undertaking letters are verified with regard to their
genuineness and authority of issuing official by addressing letters to the salary
disbursing authorities, meeting them personally etc.
11 In case of loans given to pensioners, whether the pensioner is drawing pension

through our branch?
12 Officer has signed the appraisal and Manager has sanctioned the loan with an
endorsement of sanction on the appraisal
13 Loan is processed through LAPS
14 Laid down delegation of powers is followed while sanctioning the loans and for
sanctions beyond powers, whether confirmation is on record
15 Necessary documents have been obtained and are complete
16 Documents are properly stamped
17 Post Dated Cheques / ECS Authorizations are obtained
18 Self-declaration from the borrower, that he is not availing credit facility under similar
scheme from other branches of the Bank / other Bank.
19 Rate of Interest is charged correctly and Processing charges are collected
20. Most important terms and condition are incorporated in the sanction letter as per
Circular no 443 (53/30) dated 19.03.2015 and acknowledgement of the Sanction letter is
obtained from the borrower.

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उऩबोक्ता ऋण
CONSUMER LOAN
Salaried persons, pensioners drawing pension under family pension
scheme and receiving pension from our branch and other non-salaried and
पात्रता
valued individual customers like professionals, self employed persons,
Eligibility business people, big farmers etc having repayment capacity.
(Non-salaried persons- minimum income Rs.30000/- pa)
Purchase of brand new consumer durables, such as refrigerators, TVs, wooden &
Purpose steel furniture, washing machines, mixer and grinders, cooking ranges and other
house hold equipments.
ऋण राशश Equal to 10 months gross salary in the case of salaried class, 4 months pension in
Loan amount the case of pensioners and 40% of the annual income in case of other persons.
Margin Minimum of 25%
In addition to the personal security of the borrower/coobligant, loan should be
secured by hypothecation of the article purchased with bank finance. Wherever
Security necessary the sanctioning authority may stipulate collateral security. ECS debit
mandate is compulsory, where the borrower is maintaining operative/
salary account with other Banks.
Asset Insurance: Hypothecated assets worth Rs.10000/- and above should be
insured for its full value immediately after disbursement of the loan and also renewed
Insurance annually till the loan is repaid in full.
Liability Insurance: Wherever borrower opted for the insurance guidelines of
circular No.198 Ref.51/08 dt.12.08.2013 may be followed.
Guarantee/
Good third party guarantee acceptable to the Bank.
Co obligation
Repayment Max.60 EMI or economic life of the article purchased whoever is earlier.
INTEREST RATES ON CONSUMER LOANS:
Interest rates in respect of Consumer Interest rates in respect of all others
loans allowed to employees of Central (Private employees, Non-salaried class
Government, State Government and Public and LIC agents etc.)
Sector Undertakings, who are drawing
salary through our Bank Branches and
Consumer Loans allowed to Pensioners.
LOANS UP TO 36 MONTHS
One year MCLR + Risk premium 0.50% + One year MCLR + Risk premium 0.50%
Business strategy 2.50% + Business strategy 3.00%
LOANS ABOVE 36 MONTHS

One year MCLR + Risk premium 0.50% + One year MCLR + Risk premium 0.50% +
Business strategy 3.75% + Term Premium 0.25% Business strategy 3.75% + Term premium
0.25%
Processing Charges Administrative Charges

Loan Amount (At the time of processing (Once in every three
Processing & of application) months)
Administrative Up to 0.25 Lac Rs.250/-+ST Rs.50/-+ST
Charges >0.25-0.50 Lac Rs.500/-+ST Rs.75/-+ST
>0.50-0.75 Lac Rs.750/-+ST Rs.100/-+ST
>0.75- 1 Lac Rs.1000/-+ST Rs.150/-+ST

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1% of limit.
Above 1 Lac
Min.Rs.5000/-+ST
Penal Interest
Pre-payment No charges for individuals.
Credit Rating
(Cir.163/26/34
Dt.06.08.2010)
Branches (other than Rural) have to obtain Credit Information Report from
CIR (CIBIL) CIBIL (Cir. No.238/26/9 Dt.18.10.2011)

AGM 2.00
Sanctioning CHIEF MANAGER 1.00
Powers SMGS III 1.00
MMGS II 0.75
JMGS I 0.20
No.593/51/36/25.03.2004, No.034/53/2/07.05.2014.
No.219/53/15/25.09.2014, No.322/53/20/11.12.2014.
पररपत्र Circular No.443/53/30/19.03.2015. No.443/53/30 Dt.19.03.2015.
No.39/53/4/11.05.2015, No.04/53/01/01.04.2016,
No.113/53/10/21.06.2016
1. Application for Personal/Consumer loan, in the prescribed format

2. DPN (AB 6/7)
3. Agreement (AB 35)
4. Letter of Undertaking from Borrower‟s Employer (AB 37)
5. Letter of authority to debit account (AB 36)
6. Letter of authority for payment (in case of co-obligation) (AB 24)
CHECK LIST:
assessments (wherever necessary), etc., are obtained to comply with KYC guidelines

4 Credit Investigation Report (CIR) submitted by Credit Investigation Officer is on record
account is obtained

Page 7 of 78
obligation, Take home pay etc. are followed.
9 Proof of Income and Salary Undertaking letter if available are verified with regard to
their genuineness and authority of issuing official by addressing letters to the salary

through our branch?
endorsement of sanction on the appraisal?
16 Regular demand notices are sent to the Employer for remitting the installments
wherever employer has undertaken to remit the installments directly.
18 Self-declaration from the borrower that he is not availing credit facility under similar
19 Bills / Invoices / Stamped Receipts in respect of Asset purchased are obtained and
kept on record
20 Borrower‟s Margin is ensured
21 Rate of Interest is charged correctly and Processing charges are collected
22 Most important terms and condition are incorporated in the sanction letter as per
obtained from the borrower

Page 8 of 78
सयकायी प्रततबूततमों ऩय वैमक्क्तक ऋण
Personal LOANS (AGAINST GOVT. SECURITIES)
Employees, Pensioners, Professional & Self-employed persons either signally
पात्रता or Jointly holding Govt. securities like NSCs, KVPs, LIC Policies & any other type
of security that the bank may specify from time to time.
Eligibility In case joint applicants, all or at least one of the joint applicants should be the holder
of the relative securities.
Purpose To meet genuine credit requirements for personal purpose.
Equal to 75% of purchase value of security including accrued interest /
ऋण राशश
surrender value of whole life policies or endowment policies. Securities where
Loan amount premature cancellation is not available, the date of maturity should be less
than 3 years from the date of finance.
Margin Minimum of 25%
In addition to the personal security of the borrower/Co-obligant, loan should be
secured by pledge of primary security. ECS debit mandate is compulsory,
Security
where the borrower is maintaining operative/salary account with other
Banks.
Guarantee/
Limit above Rs.50000/- Co obligation is required
Co obligation
Max.60 EMI / lump sum. In case of lump sum interest to be paid as on
when it is debited. The loan period should not however spill over the due date of
Repayment
the security.
Up to 36 Months Above 36 Months

INTEREST
*MCLR+4.95 *MCLR+4.95+0.25
RATE
(wef-11.09.2017) (wef-11.09.2017)
Processing &
Nil
Upfront Fees
Penal Interest

AGM 15.00
Powers
SMGS III 3.00
MMGS II 2.00
JMGS I 1.50
No.593/51/36 Dt.25.03.2004, No.443/53/30 Dt.19.03.2015.
पररपत्र Circular No.39/53/4/11.05.2015, No.04/53/01/01.04.2016,
No.113/53/10/21.06.2016
1. Application cum delivery letter (AB 28 A/B/C/D)

2. DPN (AB 6/7/7A)
4. Duly assigned/transferred security documents as per the format prescribed by the
concerned Authority/Body

Page 9 of 78
CHECK LIST:
2 Prescribed application is obtained and complete in all respects with relevant documents
3 Credit Information Form is obtained and kept on record
4 Credit Investigation Report(CIR) submitted by Credit Investigation Officer is on record
5 Loan is processed/sanctioned through LAPS
6 Guidelines regarding eligibility, Quantum of loan, Margin, Security, repayment period,

Guarantee / Co-obligation etc, are followed.
10 Prescribed Margins have been maintained (in respect of LSS)
11 Assignment/Lien/Pledge is noted with the concerned Authorities.
12 Residual maturity period of the Security is less than 3 years. (NSCs, etc.)
13 Co-obligation obtained for loans above Rs.50000/-
14 Latest Surrender Value Certificate and Premia Paid receipts are available (in respect
of LIC Policies)
15 Pledged Shares are in the Bank‟s approved list
16 Pledge has been registered with DP in case of Demat Shares, wherever applicable.
17 DP Register is maintained in case of Pledged Shares and DP is sufficient

(periodically reviewed)
18 Most important terms and condition are incorporated in the sanction letter as per

Page 10 of 78
वाहन ऋण (ए फी वनीता वाहन सभेत)
VEHICLE LOAN (Including AB VANITHA VAHAN)
Salaried (permanently employed) or professional and self-employed, non-
salaried persons having income proof by way of IT returns/ assessment
orders. (Minimum gross Income should be Rs.1.00 Lac p.a. for 4 Wheeler,
पात्रता Rs.60000/- p.a. for 2Wheeler & Rs.40000/- p.a. for battery operated
Eligibility bikes).
4 Wheeler loans can be sanctioned basing on the income eligibility of
spouse/parent by including spouse/parent as co-applicant (Max one co-
applicant only)
4 Wheeler –NEW 4 Wheeler- USED 2 Wheeler- NEW
85% of Road price
for salaried class/ 60% of garage 85% of Road price for
SME/ Corporate value of the vehicle salaried class/ SME/ Corporate
borrowers under or Max. of borrowers under Standard
ऋण राशश
Standard Asset Rs.25.00 Lac Asset category and with credit
Loan amount category and with (Vehicle should rating B and 80% for other
credit rating B and not be more than borrowers or Max. of Rs.5 Lakh
80% for other 3 Years old)
borrowers.
Road Price- Invoice price, Registration, Life Tax, Insurance & accessories
up to Rs.5000/- for 4 W & Rs.1000/- for 2 W.
Maximum amount of EMI that can be permitted for proposed loan is 60%
Permissible EMI
of net salary for Salaried class & 70% in case of non-salaried class.
Suitable co obligant/family member/guarantee acceptable to the Bank to
Guarantee/
be obtained. Powers delegated to ZLCC(A) for waiver of
Co obligation
cooblitant/guarantor.
Up to 36 Above 36 & up Above 60
Month to 60 Months Months
4 W-New-
General &
MCLR+0.70
Vanita Vahan &
INTEREST Corporate clients
MCLR+3.45 MCLR+3.45+0.25
4 W- Used NA
2 W-New-
MCLR+1.95 MCLR+1.95+0.25
General & Vanita NA
Vahan
 Our existing Housing loan borrowers are eligible for concession of
0.25% in rate of interest for 4 W New
4 W- New- Repayment terms can also be in the shape of quarterly/
12-84 Months half yearly/ annual installments depending upon the
income flow and occupational status of the borrower.
Repayment 4 W- Used- However repayment by any other mode than monthly
60 Months should be in the manner of recovery of proportionate
2 W- New – principal along with entire interest and charges levied up
12-60 Months to the date of each installment (non-equated mode.)
Hypothecation of vehicle to be purchased. Charge to be registered with
RTO in favour of our Bank in addition to personal security of borrower/co-
obligant. Wherever necessary the sanctioning authority may stipulate
Security
collateral security of adequate value. ECS debit mandate is compulsory,
where the borrower is maintaining operative/ salary account with other
Banks.

Page 11 of 78
Asset Insurance: Compressive insurance with hypothecation clause and
to be renewed annually till the loan is repaid in full.
Insurance
Liability Insurance: Wherever borrower opted for the insurance,
guidelines of circular No.198 ref.51/08 Dt.12.08.2013 may be followed.
4 WHEELERS: 1% of the limit sanctioned, with a minimum ceiling of
Rs.1,000/- plus applicable taxes and maximum ceiling of Rs.25,000/- plus
applicable taxes.
2 WHEELERS:1% of the limit sanctioned, with a minimum ceiling of
Rs.500/- plus applicable taxes and maximum ceiling of Rs.5000/- plus
Processing
applicable taxes.
Charges
Processing charges are fully waived for the proposal received directly from
Applicants up to 31.10.2017.
Applicable processing charges are to be collected for the proposals
mobilized from Car Dealers, as 1% of the loan amount, subject to a
maximum of Rs.25,000/-, is to be paid to Car Dealers as facilitation
charges. (Cir no 90 53/04 dated 30.06.2017)
Loan Amount
Administrative Up to 0.25 Lac - Rs.50/-
Charges (Once >0.25-0.50 Lac - Rs.75/-
in quarter) >0.50-0.75 Lac - Rs.100/-
Above Rs.0.75 Lac – Rs.150/-
Penal Interest
Credit Rating
(Cir.163/26/34
Dt.06.08.2010)
CIBIL (Cir. No.238/26/9 Dt.18.10.2011)
CIR (CIBIL)
CIBIL enquiry charges ranging from Rs.33/-to Rs.100/-+ST will be
charged.

AGM 50.00
Powers
SMGS III 10.00
MMGS II 7.00
JMGS I 5.00
No.219/53/15/25.09.2014, No.322/53/20/11.12.2014,
No.443/53/30/19.03.2015. No.39/53/4/11.05.2015,
No.56/53/6/26.05.2015, No.205/53/18/02.09.2015,
No.206/53/18/02.09.2015,No.232/53/24/24.09.2015.
पररपत्र Circular
No.450/53/37/30.03.2016, No.04/53/01/01.04.2016
No.113/53/10/21.06.2016, No.123/53/12/30.06.2016
No. 262/53/19/30.09.2016 No.263/53/20/30.09.2016
No 318/53/23/17.11.2016
1. Application for Vehicle loan, in the prescribed format

2. Vehicle Loan Agreement (AB 5)
3. Letter of Authority for payment to dealer (AB 36)

Page 12 of 78
4. Letter FOR REGISTERING Bank‟s Hypothecation/Hire purchase with RTA
(RTA FORMAT)
5. Letter enclosing DD/Payorder to dealer (AB 64)
6. General Form of Guarantee, if required (AB 8)
CHECK LIST:

3 Credit Information form & Credit Investigation Report (CIR) are on record
4 Most important terms and condition are incorporated in the sanction letter and
acknowledgement of the Sanction letter is obtained from the borrower
5 Credit rating index arrived with a minimum 40% score.
account is obtained

obligation, Take home pay etc. are followed.
9 Proof of Income and Salary Undertaking letter if available are verified with regard to
their genuineness and authority of issuing official by addressing letters to the salary

through our branch
14 Necessary documents have been obtained and are complete & properly stamped
15 While disbursing the loan, whether the branch has handed over the Demand Draft/
Pay Order direct to the Vehicle dealer under their acknowledgement.
17 Self-declaration from the borrower that he is not availing credit facility under similar
18 Bills / Invoices / Stamped Receipts in respect of Asset purchased are obtained and
kept on record
19 Borrower‟s Margin is ensured and Rate of Interest is charged correctly and Processing
charges are collected

Page 13 of 78
20 In case of Vehicle Loans, whether Hypothecation Clause is mentioned in the RC
Book and a copy of the same is kept on record
21 Whether Insurance for the asset purchased is obtained and is in force
वाहन ऋण VEHICLE LOAN

(4 wheeler loans to corporate clients and firms)
Limited Companies, Firms, Societies and Trusts holding account with our
bank are covered under the following 2 types of organizational clients.
Organizational clients having Organizational clients having
पात्रता credit limits with us. operational accounts only
Eligibility without any loan limits.
Should have credit limits with Should hold an operative account for
satisfactory conduct for more than more than two years with
one year with our Bank. satisfactory conduct of accounts.
Personal Preferable but can be relaxed by Director/Partner/CEO to offer
Guarantee sanctioning authority. personal guarantee.
Income criteria Should be profit making as per Minimum of Rs.2 Lakh profit as per
latest ABS. (Not older to 18 latest ABS not older to 18 months.
months).
Exposure Within 6 times of net worth Within 6 times of net worth
ceilings as per including proposed exposure as per including proposed exposure as per
loan policy latest ABS. latest ABS.
Maximum Loan Rs.50 Lakh subject to a cap up to Rs.25 Lakh subject to a cap up to
Amt. three times of Net Profit as per two times of net profit as per latest
latest ABS. ABS.
Hypothecation charge is to be registered in registration certificate of the
Security
Vehicle in favour of our Bank.
Other  The company has to furnish a declaration stating that the loan is
conditions availed duly complying with all the statutory and internal
requirements for borrowing and designate the competent person to
execute the documents.
 The company to declare that the car is intended for the personal
and official use of the specific executive/director.
 The company to declare that the vehicles will remain to be with
exclusive charge in favour of the Bank and no charge will be
created thereon in favour of any other lender till satisfaction of
entire dues to our Bank.
 The loan is exempted from registration of charge with ROC.
 No need to obtain Resolution of the Board keeping in view the
declaration mentioned herein above.
 Hypothecation charge is to be registered in registration certificate
of the Vehicle in favour of our Bank.
Credit Rating No credit rating is to be worked out for the company.
INTEREST The rates of interest are as applicable to 4 wheeler loans (CONVL–4)
under personal banking segment from time to time.
Discretionary powers as assigned for vehicle loans can be exercised by
various levels of field functionaries irrespective of the pre-existing
Sanctioning
sanctioned limit by any higher authority. However, the Branch / Zone
Powers
have to intimate the sanction of car loan to the sanctioning authority of
other limits.
पररपत्र Circular No.436/53/24/24.03.2012
For Documentation and Check List, please see the Vehicle loans mentioned
above.

Page 14 of 78
सम्ऩक्तत ऋण
PROPERTY LOAN
पात्रता The following categories of borrowers are eligible for availing finance
Eligibility under the scheme.
Individuals
 Salaried Individuals, Professionals and Self Employed.
Individuals engaged in Agriculture and Allied activities and
others, who are having income tax returns for at least Two
years.
 Bank’s Employees who have completed 3 years of service.
 Where the property is in the name of close relative with or
without income, he/she must join as co-applicant. All co-
owners of the property should be co-borrowers for the loan
under the scheme.
NRIs
 Non Resident Indians (NRIs) having a regular job abroad in a
Indian/ foreign company, organization or government
department.
 They have to submit satisfactory proof of income for minimum
two years.
Other than individuals
Partnership firms, limited companies and LLPs are also eligible
for finance under this scheme. The entity should be making cash
profit for the last Two years.
Trusts /societies will not be eligible to avail loan under the
scheme.
Partnership firm where HUF is a partner will not be eligible.
Purpose For any purpose except for speculative purposes.
Age Age at the time of availing loan is to be in the bracket of 21 to 65 years
(inclusive.). The age on due date should not be beyond 75 years.
Relaxation of age at the time of entry and exit stage of the loan:
ZLCC(A) will be the competent authority for relaxation in case of one
applicant/co applicant, provided the collateral security coverage is more
than 300%. In all other cases, CLCC/HLCC2(B) will be the competent
authority for approving the relaxation of age irrespective of the collateral
security coverage.(Cir no 450/53/41 dated 27.02.2017)
However, in case due date of loan stretches beyond 65 years – liability
insurance is mandatory till due date of loan. ZLCC(A) is the competent
authority to waive the liability insurance, if the collateral security
coverage is more than 300%. In case the collateral security coverage is
less than 300%, CLCC/HLCC2(B) will be the competent authority for
waiver of liability insurance.(Cir no 450/53/41 dated 27.02.2017).
Type of facility Term Loan and Over Draft
Overdraft Facility with 10% cut back every year on the original sanction
limit in such a way that the OD limit stands liquidated at the end of 10 th
year.
NRIs will be granted Term Loan only.

Page 15 of 78
Permissible  Salaried Class & Pensioners: 6 0 times of Gross Monthly income as
Bank Finance evidenced from income for last two year IT returns/salary
certificates for last three months.
 Other Individuals like Professionals and Self Employed and
Individuals engaged in Agriculture and Allied activities : 5
times of Average ( last two years) annual income as per IT returns.
 The income of co borrower/s (i.e, close relatives viz. spouse,
parents, son, daughter, brother, sister) can be accepted for t h e
p u r p o s e of arriving eligibility of the loan amount.
 Other than Individuals: (Partnership firms, limited companies, L L
Ps) 3 times of average (last two financial years) cash profit as per
audited balance sheet. In case of unaudited firms 3 times of
average income as per (last two years) IT returns. The entity
should obtain NOC from other Banks where they are enjoying credit
facilities.
Minimum and  Minimum Loan 2.00 Lakh & No maximum ceiling but all sanctions
Maximum limit shall be under discretionary powers of the sanctioning authority. The
property value should not be less than Rs.10.00 lacs.
Repayment  Salaried Class: The take home pay after all deductions including the
Capacity installments of the proposed loan shall not be less than 30% of the
gross salary.
 Non salaried class: The gross monthly income after all deductions
including the installment of the proposed loan shall not be less than
30% of gross monthly income. (Gross monthly income to be arrived
based on average annual income for the last two years).
Margin  For Overdraft: 50% of the realizable market value of the property (as
per latest valuation report of Banks‟ Approved Panel Valuer
 For term loans 40% of the realizable market value of the property (as
per latest valuation report of Banks‟ Approved Panel Valuer)
 In case the property offered as security has been purchased by the
borrower within last 1 year, lower of the following will be considered
as valuation of the property:
• Purchase price as per Sale Deed
• Realisable market value of the property
Residual POD/PTL can be considered on the residual value of the security offered
security value for the existing limits as per loan policy guidelines provided the
of the operations in the existing loan account/s are satisfactory.
properties. Ex. Mr. X is land lord of our Bank, availed term loan against Rent
receivables limit of Rs.10.00 lacs in 2013. The present outstanding
balance in the account is Rs.8.00 lacs. The value of the collateral security
is Rs.50.00 lacs. Now he approached the Bank for sanction of POD as per
his eligibility. In the present case loan eligibility can be arrived as
follows:
Value of the Security – Rs.50.00 lacs
Less: 150% security coverage for existing TLRR (Rs.8.00 lacs X 150%)
i.e. Rs.12.00 lacs
Remaining value of the property – Rs.38.00 lacs
50% margin for POD – Rs.19.00 lacs
Eligible loan amount based on security subject to income criteria –
Rs.19.00 lacs

Page 16 of 78
Security  The property should be non-agricultural. Property term loan/overdraft
can be considered against Residential/ Commercial building properties
located in all areas i.e. Metro, Urban, Semi urban and Rural, which are
enforceable under SARFAESI ACT.
 In case of vacant land/open plot, the properties located in Metro, Urban
and Semi urban only are eligible under the scheme. Vacant land/plot
situated in rural area is not eligible under this scheme.
 The age of the building should not be more than 25 years and the
remaining life of the building should be more than 15 years.
 Property value should not be less than 10.00 Lakh.
 The property to be mortgaged should be free from all encumbrances
and the borrower/applicant should have clear marketable title on land
and /or building proposed to be mortgaged for the proposed finance
under the scheme. The search report / non encumbrance certificate
should be obtained from an Advocate on the panel of the Bank at
borrowers cost.
 The property to be mortgaged should be self-occupied or vacant. After
availing the loan if the property is desired to be rented out, prior
permission from ZLCC (A) to be obtained (For loans sanctioned by
Branches and Zonal Offices) For sanctions made by Circle Office /
Head Office such permission to be obtained by concerned sanctioning
authority.
 In case of the property is rented out, Zonal office only can permit
sanction of loan up to their delegated powers duly evaluating the
credentials of tenants and enforceability of security at a future date.
Circle and Head Office may sanction up to their delegated powers on
such property duly evaluating the risk element.
 Loan / OD can be allowed to the company / firm on the security
belonging to Director / Partner. However, loan eligibility should be
assessed basing on the profit of the company/ firm. Personal
guarantee of the Directors/Partners is mandatory.
 Loan will not be extended against agriculture property.
 ZLCC A and above are empowered to sanction the facility against
vacant land/site situated in Metro/Urban/Semi-urban subject to
the following conditions.
 Vacant site shall have clearly demarcated boundaries with proper
approach ( Shall not be land locked property)
 Plot of land allotted/ purchased from any Development
Authority. (The allotment/sale of plot/land by such development
authorities should not contain any clause stipulating fixed time
limit for construction of house/commercial building)
 The land/site should have approved lay out plan.
 Agricultural land should not be accepted as security for loans/
advances under this scheme.
 Vacant Land /Open plot situated in rural area are not eligible
under this scheme

Page 17 of 78
Over Draft Loans against property can be extended to existing Housing Loan
Facility to customers after ensuring satisfactory repayment period of 12 months or
existing more including repayment period with other Banks (In case of take over
Housing Loan loans). Branches can consider the proposals as top up loan/OD based on
Borrowers present market value of the property duly ensuring 125% security
coverage for Housing Loan liability and subject to income criteria.
Discretionary Branch Level (Rs. in Crores)
Powers Term Loan OD
JMGS I 0.08 0.08
MMGS II 0.10 0.10
Scale III 0.15 0.15
CM 0.20 0.20
AGM 2.00 2.00
DGM 5.00 5.00
For Term Loan

Loan Period Rate of Interest
INTEREST Up to 36 months MCLR+2.05
Above 36 & upto 60 months MCLR+2.05+TP 0.25
Above 60 months MCLR+2.05+TP 0.50
For Overdraft: MCLR+ (Spread) 2.55
Penal Interest 2% p.a. on overdue amount.
Repayment Term Loan: The loan is to be repaid in maximum 180 Equated Monthly
period Installments (EMI). Repayment shall commence from the month
following the date of disbursement. In case of necessary Quarterly/Half
yearly installments can be fixed.
Over Drafts: The POD shall be sanctioned for 10 years subject to
annual review and reduction in operative limit by 10% cut back every
year in such a way that the OD limit stands liquidated at the end of 10 th
year.
However, if the borrower request for continuation of limit without any
cut back, Sanctioning authority may consider sanction/ renewal/
enhancement of POD limit for a further period of 10 years on completion
of one year without any cut back. Bank may consider the same if the
following conditions are fulfilled.
a) To be considered by sanctioning authority one level higher
b) The operations in the account during the last 12 months period
are very much satisfactory and it never slipped to SMA-1
category.
Upfront Fee Term Loan: One time upfront free at the rate of 1% of the sanctioned
limit+Taxes (a minimum of Rs.1000/- and a maximum of Rs.1,00,000/-)
Overdraft: Processing charges at Rs.300/- per lakh plus service tax

(Minimum Rs.1000/- and maximum Rs.25,000/- plus service tax) at the
time of sanction/renewal. One time supervision charges are to be
charged as follows:
Limit Supervision charges
Upto 10.00 lacs Rs.1000/-
Rs.10.00 to Rs.50.00 lacs Rs.2500/-
Rs.50.00 lacs & above Rs.5000/-
CLCC is the competent authority for permitting concession not more than

Page 18 of 78
50% in processing charges and upfront fees. (Cir No 450/53/41 dated
27.02.2017)
Prepayment Nil. No penalty for part or full pre-payment.

charges
Guarantor/Co Preferably one credit worthy guarantor may be taken. However, it is
obligation. not mandatory for facilities sanctioned to Individuals. In case of NRIs
local guarantor acceptable to the bank should be obtained. In case of
facility sanctioned to Partnership firms/Companies/LLPs, the
personal guarantee of the Partners/directors should be obtained.
Insurance The property to be mortgaged should be insured for full value of the
security.
Valuation of Valuation of the security shall be done at borrowers cost by our Banks
Property approved valuer as per extant guidelines at the time of considering the
facility. Valuation report to be accompanied by photographs of the
property on the date of valuer‟s visit along with complete and exact
details of the property.
If the valuation more than Rs.10.00 Crores, the valuation should be
done with two separate valuers.
In case the property offered as security is registered within last one
year, lower of the following will be considered, while arriving value of
the property: (Cir no 450/53/41 dated 27.02.2017)
a) Purchase price as per Sale Deed, value of Settlement Deed/Gift
Deed
b) Realizable market value of the property.
Age of building  The age of building should not exceed 25 years.
to be  Building/Flat more than 25 years old may be accepted as
mortgaged security, subject to approval of ZLCC (A), who will ascertain
structural soundness of the building and residual life by obtaining
opinion and certificate from approved engineer. The residual life of
the building should be at least 5 years more than the term of the
loan.
Takeover of Loan taken from other banks/financial institutions can be taken over by
loan accounts following th e extant guidelines in respect of takeover of borrowal
from other accounts.
Banks
Legal opinion Legal opinion to be obtained from Bank‟s approved advocate,
about Title actual legal fees to be borne by the borrower.
Deeds
Credit Scoring Credit s c o r i n g w i l l be done as per existing guidelines. Loan shall
for not be extended to the borrowers getting scores below cut-off mark
In dividu als under Credit Rating for Personal Banking Schemes. Cut off Score is
40
Due Diligence For New borrowers of above Rs.5.00 crores limits, Due Diligence report
from External agency to be obtained.

Page 19 of 78
Deviation CLCC is the competent authority for approval of the following up to
Powers their delegated powers:
1. Margin not less than 40% in case of Overdraft facility
2. Margin not less than 35% in case of Term Loan
3. Considering the facility to existing Housing Loan borrowers who
have completed 6 months repayment period
4. Not more than 50% concession in processing charges
5. Not more than 0.50 % reduction in rate of interest.
6. Continuation of Overdraft facility without reducing 1/10th of the
sanctioned limit If the operations are satisfactory in the overdraft
account
Other than the above, HLCC I is the competent authority at Head Office
for any deviation in the existing guidelines.
Modifications MD &CEO may be authorized to modify any of the above guidelines and
seek ratification from the Board.
Conversion of Sanctioning authority is empowered to converting the Term Loan to

TL to OD and Overdraft / Overdraft to Term Loan once in life time of the facility.
vice versa
Terms &  KYC guidelines should be m e t i c u l o u s l y and strictly complied
Conditions with.
 The facility should not be extended for speculative purposes
including investment in equities
 Accounts are r e q u i r e d to b e c l o s e l y monitored and
warning signals, if any, not to be ignored at any cost and necessary
steps must be initiated immediately.
 CIBIL data in respect of applicant should be meticulously verified.
 All the guidelines for creation of valid mortgage issued from time
to time, to be meticulously followed.
 Valuation of property should be realistic and justified
 Regular Inspection of securities to be ensured e v e r y y e a r and
reports to be kept on record.
 Contact Point Verification to be obtained for New Borrowers.
(Genuineness of IT returns to be verified).
 Before sanction, Branch officials should be ensured genuineness of
the IT returns to be established.
 ECS mandate to be obtained wherever applicable
 Letter of authority to be obtained from the borrower authorizing
Bank to transfer loan installments (EMI) in case of term loan and
interest on OD a/c from his operative account with our bank.
 The Branch officials should personally visit/inspect the
property/site to be mortgaged. The visit report by Branch Manager
is Mandatory. It should be a part of the process note for
sanction/renewal.

Page 20 of 78
Other In case of NRIs:
conditions  The repayment of the loan may be made by debit to
NRE/FCNR/NRO accounts of the Non Resident borrowers or out
of inward remittances by the borrowers.
 Close relatives of the borrower in India may also repay the
installments, interest and other charges, if any, through their
bank account directly to the borrower‟s loan account.
 In terms of RBI guidelines, it is to be ensured that the proceeds
of rupee loan are not utilized for any of the following activities.
 The business of chit fund, or
 Nidhi company, or
 Agricultural or plantation activities or in real estate
business, or construction of farm houses, or
 Investment in capital market including margin trading and
derivatives.
 An undertaking to this effect must be obtained and kept on
record.
The existing Mortgage Loan scheme should be discontinued and all fresh
loans to be be sanctioned under Property – Overdraft / Property -Term
Loan (POD/PTL).
पररपत्र Circular No.91/53/08/01.06.2016, No.192/53/13/08.08.2016
1. Application of advance
2. Offer of security (AB 9)
3. DPN (AB 6/7)
4. Memorandum of Deposit of Title Deeds in case of Equitable Mortgage (AB 10/11)
5. Mortgage Deed, in case of Registered Mortgage (AB 13)
6. Power of Attorney of deposit of Title deeds, wherever necessary (AB 12)
8. Joint Family Letter or Partnership letter (AB 18/19)
CHECK LIST:

documents, including Property statements of Borrower / Co-obligant / Guarantor.

4 Credit Investigation Report(CIR) submitted by Credit Investigation Officer is on record
account is obtained
6 Guidelines regarding eligibility – Purpose, Quantum of loan, Age, Repayment period,

Co-obligation, Security and Margin, PDCs etc are followed. (Cir No. 274/53/26 dt
04.10.2012)
7 Officer and Manager have signed the appraisal, for having sanctioned the loan and also
for disbursement on the debit voucher

Page 21 of 78
9 All standard terms & conditions, Most important terms and conditions & case specific
conditions have been stipulated in the letter communicated to the borrowers/guarantors
and acknowledgement of the same is obtained.
10 Necessary documents have been obtained and are complete and properly stamped
11 Legal Audit is conducted as per norms (wherever necessary)
12 Legal Audit observations are complied and the compliance is submitted to ZO/HO
13 Certificate of inspection of Collateral Security and Manager‟s Valuation of Property (RF

216) are on record
14 Approved Engineer‟s Valuation report for collateral security is on record
15 Title Verification is carried out by Panel Advocate and Legal Opinion is obtained in HO
approved format (wherever applicable)
16 Certified Copies of title deeds and search report from approved legal advisor are
obtained and kept on record
17 Proper mortgage is created in line with Bank Advocate‟s opinion (with Original Title
Deeds, Latest ECs, Tax Receipts, Link documents etc)
18 Necessary entries are made in the Title Deed Register in chronological order and
properly authenticated
19 RF 255 is registered with SROs (wherever applicable) and EC is obtained after

registration of RF 255
20 Mortgage is registered with CERSAI
21 Interest is charged as per terms of sanction and Processing charges are collected
22 Insurance of Collateral security is obtained and is in force

Page 22 of 78
एफी डाक्टय +
AB DOCTOR +
Individuals, Firms, Limited Liability Firms, Companies Trusts and Societies
engaged in rendering professional medical services. In case of non-
individual constitution – key promoter should be a qualified medical
practitioner. All practicing qualified medical practitioners holding a
Eligibility recognized graduate degree in any Branch of Medicine/Surgery/Dental
Science/Physiotherapy /Radiology/ Pathology /Diagnostic Imaging etc. with
a minimum practicing experience of two years.
To set up clinics, Pathological/X-Ray/ Sonographic /any other Diagnostic
Imaging Laboratories /purchase of medical equipment, medical software,
Purpose computers for hospital purposes. Furnishing of Nursing Homes, Purchase of
Ambulance, Working capital requirement for existing Nursing Home.
(construction of Nursing Home is not covered under the scheme)
Term Loan: 75% of cost of equipment / Furnishing of existing Nursing
Homes /Ambulance.
ऋण राशश
Working Capital Limit: 75% of the revenue expenditure of the previous
Loan amount year as per Profit and Loss account certified by CA.
Maximum of Rs.20 Lakh irrespective of area classification.
Margin 25%
No collateral security. To be covered under CGTMSE compulsorily. It is to be
ensured that the proposal fulfills all the required eligibility norms for
Security coverage under CGTMSE. Fees are to be borne by the borrower. ECS debit
mandate is compulsory, where the borrower is maintaining operative/
salary account with other Banks.
Guarantee/
No third party guarantee / Co-obligation
Co obligation
Max. 84 months and holiday of 1 year for principal & interest.
Repayment For working capital limits (in the nature of Unsecured overdraft) for 1 Year
– eligible for renewal subsequently.
INTEREST MCLR+3.45
Floating irrespective of nature of limit and tenure of limit. No TP.
Processing & 0.50% of the limit sanctioned both for Term Loan & Overdraft + CGTMSE
Upfront Fees premium.
Penal Interest
Credit Rating
employment, no. of dependent, dealings with bank, loan repayment history,
(Cir.163/26/34
margin, contribution and net worth of the borrower rating will be decided.
Dt.06.08.2010)
Minimum score required is 40 out of 100.
Sanctioning
DM-1L, SM-3L, CM-10L, AGM-20L.
Powers
No.008/53/1/05.04.2012, No.443/53/30 Dt.19.03.2015.
No.39/53/4/11.05.2015
CHECK LIST:
1. Borrower‟s Photo, Necessary Proof of Identity, Address proof, copy of PAN card, IT

Page 23 of 78
2. Prescribed application is obtained and complete in all respects with relevant
documents, (Proprietary declaration form / Partnership letter / Resolution/ Property
statements etc.)
3. Recognized graduate degree in any Branch of Medicine and Minimum Practicing

experience of 2 years is taken care of (HO Cir No. 008/53/1/05.04.2012)
4. Maximum exposure under the scheme (Rs. 20.00 lacs) is followed
5. Credit Information form is obtained and kept on record
6. Credit Investigation Report (CIR) submitted by Credit Investigation Officer is on

record
7. Loan is covered under CGTMSE (Mandatory), since there is no collateral security/ third
party guarantee
8 Loan sanctioned is within the maximum repayment period of 84 months and holiday of
one year for principal & interest
9. Pre sanction unit inspection is conducted and report kept on record
10. Laid down delegation of powers is followed while sanctioning the loans and for
11. Rate of interest is properly charged
12. Terms and conditions have been duly acknowledged by the Borrower on the sanction
letter communicated by Branch (Sanction letter contains Most important terms and
conditions
13. Necessary documents have been obtained and are complete
14. Documents are properly stamped
15. Borrower‟s Margin is ensured, while disbursing the loan
16. Term Loan is disbursed in installments? (directly to suppliers, wherever applicable)
17. Documents supporting creation of assets such as Invoices, Bills, Receipts etc. are
obtained
18. All the securities are insured as per guidelines and insurance is adequate and policies
are in force, with Bank‟s Hypothecation clause.
19. CGTMSE fee is debited to the Borrower‟s account and remitted to the Corporation
promptly?
20. Upfront fee collected as per sanction terms

Page 24 of 78
एफी नाइंटटगेर
AB NIGHTINGALE
Candidates who passed the General Nursing Course or B.Sc (Nursing) or relevant
degree courses recognized by Central /State Government and currently employed as a
nurse (full time) in private Nursing Homes, Corporate Hospitals, Government Hospitals
Eligibility etc., are eligible for sanction of loan under this scheme.
This scheme is restricted for identified branches.
Purpose To purchase vehicles, consumer goods, contingency loans & go abroad
ऋण राशश 8 times of gross salary not exceeding Rs.25000/- for contingency loan.
Loan amount Vehicle Loan & Consumer Loan- Max. of Rs.1.00 Lakh
Margin 15% Margin (No margin for travel abroad and contingency loans)
Above 25000/-Collateral security of 50% of exposure. ECS debit mandate is
Security compulsory, where the borrower is maintaining operative/ salary account
with other Banks.
Guarantee/ Two sureties including one close relative
Co obligation
Repayment Max.36 EMI
INTEREST
BR+4.5%
Processing &
Rs.250/-
Upfront Fees
Penal Interest
Depending upon Age, Qualification, Residence stay, Transferability,
Credit Rating
Employment / Profession, Gross Income, Net take home pay, Spouse
employment, No. of dependent, Dealings with Bank, Loan Repayment
(Cir.163/26/34
history, Margin, Contribution and Net worth of the Borrower rating will be
Dt.06.08.2010)
Pre-payment No charges for individuals
273/51/22/19.10.2006, No.443/53/30 Dt.19.03.2015.
No.39/53/4/11.05.2015
CHECK LIST:
assessments (wherever necessary), etc., are obtained to comply with KYC guidelines?

documents, ( Property statements etc)
3. Credit Information form is obtained and kept on record.

record
5. Loan is allowed for the approved purposes (Cir.No.273/51/22, dt.19.10.2006) i.e., to

meet expenses such as -
A) For purchasing a vehicle
B) For purchase of consumer durables
C) To meet other household/personal expenses, contingencies etc.
D) To travel abroad for taking up employment

Page 25 of 78
6. Borrower passed the General Nursing Course or B.Sc. (Nursing) or relevant degree
courses recognized by State / Central Govt. and currently employed as a nurse (fulltime)
in private Nursing Homes/Corporate Hospitals/Govt. Hospitals etc.
7. In case loan is for travel abroad for taking up employment, whether the following
required documents are obtained
a. Certified copy of India Board / University Mark list, degree, diploma etc. of the basic
qualifying examination
b. Certified copy of international qualifying examination like CGFNS (commission on
graduates of Foreign Nursing Schools)/IEL TS (International English Language
Testing system)/NCLEX(National Council Licensure Examination)/NCSBN (National
Council Licensure of State Boards of Nursing) to join "as a nurse in US .
c. Certified copy of valid passport and visa
d. Certified copy of employment offer/letter/work permit
e. Certified cop¥ of registration obtained by the recruitment agency
8. Loan is processed through LAPS
9. Security norms are followed as per the purpose as stipulated in the circular
10. Prescribed margin is obtained relating to the purposes of the loans [15% for Vehicle
Loans or Consumer Durables. No margin for travel abroad for taking employment or
contingency purposes]
11. Loan sanctioned is within the maximum repayment period of 36months
12. Pre sanction unit inspection is conducted and report is kept on record
13. Rate of interest is properly charged
14. Most important terms and condition are incorporated in the sanction letter as per
15. Necessary documents have been obtained and are complete
17. Term Loan is disbursed in installments (directly to suppliers, wherever applicable)
18. Documents supporting creation of assets such as Invoices, Bills, Receipts etc. are
obtained
19. All the securities are insured as per guidelines and insurance is adequate and policies
are in force, with Bank‟s Hypothecation clause.
20. Upfront fee is collected as per sanction terms

Page 26 of 78
एफी प्रॉपेश्नर
AB PROFESSIONAL
Practicing Chartered Accountants, Architects, Engineers, Valuers,
Management/Financial Consultants, Company Secretaries, Cost Accountants
etc.,
पात्रता Constitution: Individuals, Firms, Limited Liability firms, Companies or
Eligibility Societies engaged in rendering professional services.
Should be an assesee under Income Tax at least for the last two yrs.
Should be a registered member with their respective professional
Association/ Board/ Body.
To establish/ renovate the office premises, Furnishing of office premises,
Purchase of Tools, Equipment & Books, expenses relating to travel for
Purpose professionals, working capital for carrying out day to day operations. Term
Loan, Overdraft or a combination of both depending upon the purpose of
credit.
Term Loan: 75% of the cost of asset proposed to be purchased.
Working Capital limit: 75% of the revenue expenditure of the previous
ऋण राशश
year as per Profit and Loss account.
Loan amount Total exposure should not exceed 2 times of average annual income of
preceding two years. Maximum of Rs.10 Lac.
Hypothecation of existing movable assets and asset/s purchased out of loan
and other current assets.
Security
ECS debit mandate is compulsory, where the borrower is maintaining
operative/ salary account with other Banks.
To be covered under CGTMSE compulsorily (Refer HO circular No. 360. Ref.
Guarantee
No. 52/07 dt. 10.01.2011) with onetime payment of guarantee fee & annual
Coverage
service fee by the borrower, manually.
Not exceeding 60 monthly installments with a maximum repayment holiday
Repayment of 1 year for principal and interest. For working capital limits in the nature
of COD- 1 year – eligible for renewal subsequently.
INTEREST
MCLR+3.45 NO TP
Processing & 0.50% of the limit sanctioned both for Term Loan & Overdraft + CGTMSE
Upfront Fees premium.
Penal Interest
Credit Rating
employment, no. of dependent, dealings with bank, loan repayment history,
(Cir.163/26/34
margin, contribution and net worth of the borrower rating will be decided.
Dt.06.08.2010)
Minimum score required is 40 out of 100.
No.377/53/18/30.01.2012, No.443/53/30 Dt.19.03.2015.
No.39/53/4/11.05.2015

Page 27 of 78
प्राप्म ककयामा
RENT RECEIVABLE
पात्रता Individuals, Proprietorship, Partnership, Public / Private ltd. Companies,
Eligibility Trusts etc. owning properties including landlords of our branch premises.
Residential/commercial properties at Metro/Urban and
Eligible properties in Semi-Urban/Rural areas abetting Metro/Urban
properties areas may be considered. In case of bank premises let-out to our
Bank in any areas may be considered.
Tenants must be of Reputed Public/Private sector / undertakings, Banks,
National / International Airlines etc.
Private Sector organizations should have the capacity to pay the rents.
Eligible Tenants
In case of commercial organization it should be profit making for last 2
years and shall be in existence for a period not less than 5-7 yrs.
Proposals of Individual Tenants to be considered by HO.
Closing the loan taken for development/construction of the property.
Purpose In cases where the property is constructed with own sources, limits can
be considered for the expansion / development of existing Business.
Rent receivable in next 120 Months or unexpired lease period including
Loan amount option period, whichever is less after making adjustment for TDS,
Property Tax and 15% of rent towards maintenance.
15% of rent receivable towards maintenance and 25% of margin in
Margin
collateral security of NSCs, Deposits etc.
Registration of lease dead is mandatory.
Mortgage of property for which rentals are charged to loan or alternative
Security property of value not less than 150% of loan amount or NSCs, Deposits
etc. ECS debit mandate is compulsory, where the borrower is
maintaining operative/ salary account with other Banks.
One Guarantor.
Guarantee/
Guarantee not to be insisted in case of loan to our Bank premises
Co obligation
landlords
120 Months or unexpired lease period including option period, whichever
Repayment
is less, through ESCROW account.
Our Bank Land Lords Other than our Bank Land Lords
MCLR+1.20 to 2.70%
MCLR+1.70 (Based on the substantiality of business model
INTEREST
of the Tenant)
(TP of 0.25% for the Term Loans with repayment over 3 Yrs. (including
gestation/moratorium) and up to 5 Yrs. and 0.50% for the Term Loans
with repayment over 5 Yrs. (including gestation/moratorium).
Processing 1% of the loan amount irrespective of the limit and period of the loan +
charges service tax.
Administrative
Rs.150/-+ST per quarter irrespective of limit.
charges
Penal Interest
Credit Rating
(Cir.163/26/34
Dt.06.08.2010)
Branches (other than Rural) have to obtain Credit Information Report
from CIBIL (Cir. No.238/26/9 Dt.18.10.2011)
CIR (CIBIL)
CIBIL enquiry charges ranging from Rs.33/-to Rs.100/-+ST will be
charged.

Page 28 of 78
Sanctioning
BRANCHES HAVE NO POWERS
Powers
No.044/26/08 Dt.23.05.2011, No.34/53/2/07.05.2014,
No.60/53/05/27.05.2014, No.405/53/25/20.02.2015,
No.443/53/30/19.03.2015. No.39/53/4/11.05.2015,
No.135/53/13/15.07.2015, No.04/53/01/01.04.2016
1. Application
2. General Power of Attorney (AB 49)
3. Letter of Undertaking (AB 50)
4. DPN (AB 6/7)
5. Acceptance of General Power of Attorney in favour of Bank by
Lessee/Tenant (AB 51)
8. Equitable Mortgage (AB 10)
9. Mortgage Deed in case of Registered Mortgage (AB 13)
CHECK LIST:
1. Borrower‟s Photo, Necessary Proof of Identity, Address proof, copy of PAN card, IT

documents.
3. Credit Information form is obtained and kept on record.

record
5. Pre sanction unit inspection is conducted and report kept on record
6. Certificate of Inspection of Collateral Securities is available (in the prescribed format)
7. Manager‟s valuation (RF 216) of Collateral Security is kept on record
8. RBI defaulters list, caution list, ECGC-SAL list, defaulters‟ list of Rs.1.00 crore and
above (suit filed category) of CIBIL is verified in respect of borrowing entity, promoters,
associates and co-obligants/ guarantors, before taking credit decisions.
9. Due diligence of prospective borrower was conducted and report kept on record
(applicable for new borrowal accounts of Rs.1.00 crore and above)
10. All standard terms and conditions and case specific conditions have been stipulated
in the letter communicated to the borrower
11. Terms and conditions have been duly acknowledged by the Borrower and Guarantors
and/or Co-obligant/s, on the sanction letter communicated by Branch
12. All necessary documents have been obtained and are filled up

Page 29 of 78
14. Legal Audit is conducted as per norms
15. Legal Audit Observations are complied with and the compliance is submitted to
ZO/HO
16. Title Verification is carried out by Panel Advocate
17. Legal Opinion is obtained in HO approved format
18. Certified Copies of title deeds and search report from approved legal advisor are
19. Proper mortgage is created in line with Bank Advocate's opinion (with Original Title
20. Necessary entries are made in the Title Deed Register in chronological order and
21. RF 255 is registered with SROs
22. EC is obtained after registration of RF 255
23. Mortgage is registered with CERSAI
24. Approved Engineer‟s Valuation Report is obtained in HO format and EVR less than 2
years old
25. Approved Engineer‟s Valuation Report is countersigned by the Manager / Officer who
accompanied the approved valuer.
26. All the securities (Primary & Collateral) are insured as per guidelines and insurance is
adequate and policies are in force, with Bank‟s Hypothecation clause
27. Lease deed is registered
28 General Power of Attorney (POA), preferably notarized executed by the borrower in

favour of the Bank and accepted by the lessee (by way of a letter) to collect monthly
rentals from the lessee on behalf of the borrower is obtained and on record
29. An undertaking letter to the above effect from the borrower (to be stamped) is
obtained and on record
30. Undertaking letter is given by the lessee to remit the rentals directly to the Bank
31. Loan is released only after the premises on which the Rent Receivables loan
sanctioned is completed and occupied bythe tenant as per terms of the lease.
32. Whether it is ensured periodically that all the statutory dues are being paid by
the borrower regularly by obtaining copies of the receipts?

Page 30 of 78
AB ANAND JEEVAN
The scheme is popularly known as “reverse mortgage” across the world. The Scheme
is meant for Senior Citizens. As per the Scheme, a Senior Citizen, who is the owner of a
house (Self acquired and Self Occupied) can avail monthly/quarterly payments against
the mortgage of his/her house, while remaining the owner and occupying the house
throughout his/her lifetime, without repayment or servicing of the loan.
OBJECTIVE:
The Main objective is to provide a source of additional income for senior citizens of India
who own self-acquired & self-occupied house property in India. Reverse Mortgage Loans
may also be sanctioned to senior citizen borrowers owning an inherited property,
provided the title is clear and the property is free from any encumbrances.
ELIGIBILITY CRITERIA:
a) No. of Borrowers: Single or jointly with spouse.
b) Age of first borrower: Above 60 years.
c) Age of spouse: Above 55 years
d) Residence:
i) Borrower should be staying at self-acquired and self-occupied house/flat against
which loan is being raised as his permanent primary residence. Reverse Mortgage
Loans may also be sanctioned to senior citizen borrowers owning an inherited
property, provided the title is clear and the property is free from any encumbrances
ii) Mobile/ Telephone/Credit Card bills/certificate from the Housing Society where the
borrower is staying/Affidavit made before the Executive Magistrate may be accepted
as proof of residence. This is to be supplemented by Physical Inspections. Borrowers
will be required to inform the Bank when they cease to use this residence as their
permanent residence.
e) Title of the Property:
Borrowers should have a clear and transferable title in their names. Title verification
and search report for a period of 30 years will be required to be obtained from the
Bank's empanelled advocate at borrower's cost as limitation on adverse possession on
the government property expires after 30 years
f) Title in single name and loan availed jointly with spouse:
Title holder should make a registered will in favour of the spouse. The will should
confirm that this is the last Will and that it super cedes all earlier Wills, if any. The
borrower to undertake that no fresh Will shall be made during the currency of the loan
g) Encumbrances: The property should be free from any encumbrances.
h) Residual Life of Property: Should be at least 20 years. Certificate from the
empanelled engineer/architect will be required to be obtained that the residual life of the
property is not less than 20 years, in addition to valuation of property.
ELIGIBLE PROPERTIES:
Residential properties only are eligible under the scheme. The residential property should
comply with the local residential land use and building bye laws stipulated by local
authorities, with duly approved layout and building plans. Commercial properties are not
eligible for Reverse Mortgage Loan.

Page 31 of 78
PURPOSE OF THE LOAN:
a. Medical, emergency expenditure for maintenance of family.
b. For supplementing pension/other income.
c. Meeting any other genuine needs.
However, the loans for speculative, trading and business purposes cannot be considered.
ELIGIBILITY OF LOAN AMOUNT:

The Loan amount would be 90% of the realizable value of the property The realisable
value is 70% of the Market value of the immovable residential property. The Loan
amount inter alia include principal and interest till maturity.
The minimum amount of loan is Rs. 5 lacs and maximum qualifying amount of loan
including interest shall be restricted to Rs. 100 lacs. However, the maximum amount
under Lump sum payment is restricted medical purposes only and is 50% of eligible
amount with a cap of Rs.15 lac.
PERIODICITY OF AVAILING LOAN:

1. Monthly/quarterly payments (monthly payment shall not exceed Rs.50,000.)
2. Lump-sum payment (Restricted to 50% of eligible amount subject to a cap of
Rs.15.00 lac to be used for medical treatment for self, spouse and dependents.
In case of lump-sum payment the following guidelines are to be observed:
The lump-sum payment is to be restricted to Medical exigencies and shall be restricted
to 50% of the total eligible amount of loan subject to a cap of Rs.15 lac. The balance
amount is eligible for periodic payments.
The end use is to be ensured by making direct payment wherever possible to the
Hospitals and to obtain Documentary evidence/satisfactory proof of the expenditure.
RATE OF INTEREST:
MCLR+1.95 (ROI will be reset at the end of every 3 years)
The rate of interest prevailing on the date of sanction / reset will be fixed till next reset
date.
TENOR OF THE LOAN:

Maximum: 15 years
PRIMARY SECURITY:
Registered Equitable Mortgage of House/Flat, against which loan is sanctioned.
MODE OF DISBURSEMENT OF THE LOAN AMOUNT:

By credit to an SB account in the joint names of the borrowers operated E or S.
REPAYMENT/SETTLEMENT:
a) The loan shall become due and payable only when the last surviving borrower dies or
opts to sell the home, or permanently moves out of the „home for aged care‟ to an
institution or to relatives.
Typically, a "permanent move" may generally mean that neither the borrower nor any
other co-borrower has lived in the house continuously for one year or do not intend to
live continuously.
b) Settlement of loan along with accumulated interest is to be met by the proceeds

received out of sale of residential property.

Page 32 of 78
c) The borrower(s) or his/her/estate shall be provided with the first right to settle the
loan along with accumulated interest, without sale of property.
d) A reasonable amount of time, say up to 2 months, may be provided when RML

repayment is triggered, for house to be sold.
e) The balance surplus (if any), remaining after settlement of the loan with accrued
interest and expenses, shall be passed on to the borrower or the estate of the borrower.
FORECLOSURE:
The loan shall be liable for foreclosure due to occurrence of the following events of
default.
a) If the borrower(s) has/have not stayed in the property for a continuous period of one
year.
b) If the borrower(s) fail(s) to pay property taxes or maintain and repair the residential
property or fail(s) to keep the home insured, the Bank reserves the right to insist on
repayment of loan by bringing the Residential property to sale and utilizing the sale
proceeds to meet the outstanding balance of principal and interest.
c) If the borrower(s) declare himself/herself/themselves bankrupt.
d) If the residential property so mortgaged to the Bank is donated or abandoned by the

borrower(s).
e) If the borrower(s) effect changes in the residential property that affect the security of
the loan for the Bank. For example: renting out part or all of the house; adding a new
owner to the house's title; changing the house's zoning classification; or creating further
encumbrance on the property either by way of taking out new debt against the
residential property or alienating the interest by way of a gift or will.
f) Due to perpetration of fraud or misrepresentation by the borrower(s).
g) If the government under statutory provisions, seeks to acquire the residential

property for public use.
h) If the government condemns the residential property (for example, for health or
safety reasons).
DELEGATION POWER FOR SANCTION:

Branches have no powers to sanction
PREPAYMENT OF THE LOAN:

The borrower(s) will have option to prepay the loan at any time during the loan tenor.
There will be no prepayment penalty.
UPFRONT FEE:
0.25% of the sanctioned loan amount with a maximum of Rs.4,000/- plus Service Tax.
OPTION FOR THE BANK TO ADJUST PAYMENTS:

a) After the initial valuation to determine the loan amount, subsequent revaluations will
be done at intervals of 3 years. The Bank shall have the option to revise the periodic
/lump-sum amount every 3 years along with revaluation. In the scenario of fall in
property prices, the Bank may decide to revise the amount at any time earlier than 3
years. At every stage of revision, it should be ensured that the Loan to Value ratio does
not exceed 90% of Realisable Value at maturity.

Page 33 of 78
b) Borrower shall be provided with an option to accept such revised terms and conditions
for furtherance of the loan.
c) If the Borrower does not accept the revised terms, no further payments will be
effected by the Bank. Interest at the rate agreed before the review will continue to
accrue on the outstanding amount of the loan. The accumulated principal and interest
shall become due and payable as mentioned in Repayment and Foreclosure options
mentioned above.
RIGHT OF RESCISSION:
As a customer-friendly gesture and in keeping with international best practices, after the
documents have been executed and loan transaction finalized, borrowers will have right
of rescission up to three days to cancel the transaction. If the loan amount has been
disbursed, the entire loan amount will need to be repaid by the borrower within this
three days period. However, interest for the period may be waived. Processing fee shall
not be refunded in such cases.
INSURANCE AND MAINTENANCE OF HOUSE PROPERTY:

a) The house property will be insured by the borrower at his cost against fire,
earthquake and other calamities.
b) The borrower shall ensure to pay all taxes, Electricity charges, Water charges and
statutory payments.
c) Bank reserves the option to pay for insurance premium, taxes, charges, or repairs etc.
by reducing the loan amount to that extent.
d) The borrower shall maintain the property in good and saleable condition.
SUBMISSION OF LIFE CERTIFICATE:

Borrowers will be required to submit annual life certificates in the month of November
every year. This certificate will also include clauses regarding marital status, and
permanent residence of the borrowers, in addition to the balance confirmations on 31st
October of that year.
WILL:
With a view to avoid disputes at the time of settlement of loan amount by legal heirs,
specific instructions about inheritance of the property and payment of balance amount, if
any, of the sale proceeds after settling the Bank‟s dues, will be required to be part of the
borrowers‟ Will.
REGISTRATION OF MORTGAGE:
Equitable Mortgage has to be registered with the Sub-Registrar and CERSAI is to be
done as per existing guidelines.
REALIZABLE VALUE OF THE PROPERTY:

For the purpose of AB Anandjeevan Loan(RML), the realizable value of the immovable
property is to be arrived at 70% of the market value of the property as evaluated by
bank's approved engineer.
LEGAL HEIRS:
The list of legal heirs of the borrower has to be obtained at the time of sanctioning the
loan itself. The addresses of the legal heirs should also be recorded and updated
periodically.

Page 34 of 78
ENQUIRIES BEFORE MORTGAGE:
It may be difficult to ascertain in the present system, any attachment of the property by
courts in any legal proceedings including execution of decrees. Mortgage of properties
under attachment if done is subject to such attachment. Before accepting mortgage,
branch has to make necessary enquiries through approved advocates with regard to
litigations, if any, as per extant guidelines.
RISK INVOLVED:
Reverse Mortgage Loan product carries a clear and transparent 'no negative equity' or
'non-recourse guarantee. That is the borrower will never owe more than the net
realizable value of their property, provided the terms and conditions of the loan have
been met.
In case, where borrower(s) are alive after the Tenor of the Loan, Interest will accrue and
Loan to Value Ratio may come down.
As a risk mitigation, it has been stipulated that the Loan to Value ratio, at any point of
time, shall not exceed 90% of the value of immovable property.
DESIGNATED BRANCHES:
The scheme is available in designated branches only
COUNSELING AND INFORMATION TO BORROWERS:

 Branches shall clearly and accurately disclose the terms of the AB Anandjeevan
Loan without any ambiguity to the prospective Borrowers.
 Branches should clearly explain the methodology followed for valuation of the
residential property, the method of determination of eligible quantum of loan, the
frequency of re-valuation and review of terms, cost to the prospective borrower
and all related aspects of the RML
 Branches shall in no way assert or imply to the borrower that the borrower is
obligated to purchase any other product or service offered by the Bank or any
other associated institution in order to obtain a reverse mortgage loan. Overall,
the Branches should treat the Senior Citizen borrower fairly.
1. Application
2. Reverse Mortgage Loan agreement (AB 52)
3. Equitable Mortgage (AB 10)
4. Mortgage Deed in case of Registered Mortgage (AB 13)
5. WILL by owner of property in favour of spouse/co applicant, if loan applied jointly
and title is in single name.

Page 35 of 78
स्वणण ऋण (कृषेततय)
GOLD LOANS (NON AGRICULTURE)
Purpose of the Loans for pure consumption purposes such as meeting

loan marriage/medical/educational expenses and other expenses of like nature
may be sanctioned subject to the rules in force.
CARATS Rate per Gram

ऋण राशश Hallmarking 916
Loan Amount (Corresponding to 22 carat) Rs.1850/-
Coins with 999.9 purity (22 carat) Or 75% of the Market value of Gold,
(Up to 50Gms only per borrower) whichever is less
Coins with 916 purity (22 carat) (per one gram 22ct purity)
(Up to 50Gms only per borrower)
Loan Tenor 12 months - Bullet payment on due date
INTEREST One year MCLR + Business strategy 2.00%

RATE
Appraisal / Appraisal Charges : (Cir no 431 Ref No.53/37 Dated 15.02.17)

Reappraisal
and Processing (a) For loans up to Rs.2.00 lakhs:
Charges The charge is 1% per annum to be payable by the borrower
proportionate to the period of loan outstanding. The applicable amount up
to 12 months shall be collected from the borrower or deducted from the
loan proceeds at the time of first disbursement. 40% of the debited
amount subject to a maximum of Rs.500/- per account shall be paid to
the appraiser (appraisal charge) and the remaining is to be taken to
Bank`s income account (processing charge).
(b) For loans above Rs.2.00 lakhs:

The charge shall be 0.75% per annum and 40% of the amount debited
subject to a maximum of Rs.600/- shall be paid to the appraiser
(appraisal charge) and the remaining amount shall be taken to Bank`s
income account (Processing Charge).
(c) Reappraisal Charges: (Cir no 417 Ref no 53/36 dated 02.02.17)

For loan before due date: Reappraisal charge of 0.15% of the
outstanding loan amount subject to a maximum of Rs.250/- per account
shall be debited to Bank‟s P&L account and paid to the appraiser.
For loans after due date: Reappraisal charge of 0.15% of the
outstanding loan amount subject to a maximum of Rs.250/- per account
shall be debited to Loan account and paid to the appraiser.
Re-appraisal Re-appraisal of gold pledged under all outstanding account s with a limit
of Rs.5.00 Lakh and above is to be carried out every six months. Besides,
at least 30% of outstanding loans at random out of the loans with limits
below 5.00 Lakh should be re-apprised by other than the one who
appraised the gold at the time of allowing / renewing the loan.

Penal Interest repayment of loan.
Part payment Can be accepted without prepayment penalty.

Page 36 of 78
Nomination Not available
Other features 1. Loans should not be allowed against non-ornamental gold

2. Loans for speculative purposes should not be allowed.
3. Ornaments subjected to domestic wear and tear only should be
accepted. New ornaments should not be accepted unless branch is
satisfied with the trustworthiness of the customer.
4. Ornaments with large percentage of stones or other extraneous
material should be avoided.
5. As a rule, ornaments like Kante, Addiga, Nagaram, Ragidi should not
be accepted.
6. Very small ornaments also should not be accepted.
7. Applications from outside the operational area of the branch should
generally not be accepted.
8. Finance should not be extended to money lenders.
9. Right relinquishing letter is to be obtained from owner of the
ornaments if any names are there on the ornaments.
10. Ornaments once received should be in joint custody.
11. Minimum amount of loan is Rs.300/-
12. Gold coins of our Bank with tamper proof Assay certificate intact need
not be appraised.
Sanctioning BM1-2L, BM2-5L, BM3-10L, CM-15L, AGM-20Lac.

Powers
No.206/53/13/22.09.2014. No.275/53/18 Dt.08.11.2014.

No.381/53/33/06.02.2016. No.395/53/35/15.02.2016,
No.04/53/01/01.04.2016, No.78/53/4/24.005.2016,100/53/9/13.06.2016
No 344/53/25/09.12.2016
** AB SUPREME SCHEME IS DISCONTINED WEF 14.03.2017 (HO CIR NO 469

REF NO 53/44 DATED 14.03.2017)
1. Gold Loan application (AB 32)
2. DPN (AB 6/7)
3. Risk Letter (AB 31)
4. Declaration (AB 62)
5. Right relinquishing letter, wherever necessary (AB 33)
6. Letter of authority, wherever necessary (AB 24)
CHECK LIST:
1 Borrower‟s Photo, Necessary Proof of Identity, Address proof, copy of PAN card,
(wherever necessary), etc., are obtained to comply with KYC guidelines
2 Prescribed application is obtained and complete in all respects with relevant documents
3 Guidelines regarding margin, value per gram etc., are followed
4 Gold appraiser‟s certificate appraising the ornaments is available
5 Officer and Manager have signed the appraisal, for having sanctioned the loan and also
for disbursement on the debit voucher

Page 37 of 78
8 Ornaments are kept in Packets with tamper proof sealing facility and one side
transparency, filling in the details of loan account on the non-transparency side of the
cover and signed by Joint Custodians
9 Ornament register including Authentication by Joint Custodians is being properly

maintained.
10 Ornaments delivery register and acknowledgement by borrower having received the

ornaments is maintained
11 Gold Ornaments are reappraised once in 18 months (including those pledged under
renewed accounts) by any other than the one who appraised the gold at the time of
allowing / renewing the loan
12 In case the limit is Rs.5 Lakh & above, whether re-appraisal of Gold jewellery is
carried out, every six months for this account?
13 In case the limit is below Rs.5 Lakh, whether re-appraisal of Gold jewellery is carried
out for this account, every six months under random verification of 3% (atleast) of
outstanding loans?
14 Separate letter from the borrower obtained, enabling the Bank to recall / call up on
for accelerated repayment / to increase the security based on the Base Rate/MCLR
Movement

Page 38 of 78
स्वणाणबूषण ऩय कैश क्रेडडट / ओवेयड्राफ्ट
CASH CREDIT / OVERDRAFT AGAINST GOLD ORNAMENTS
Small players in Industry, Service and Business sectors may be
encouraged to avail this hassle free facility. No requirement of Legal
Purpose of the
opinion, Engineers valuation, Insurance etc. Submission of Stock
loan
statement is also not required. It attracts prudential norms. Pawn
brokers are not eligible for finance.
Calculated as per eligibility per gram as per HO guidelines issued from
ऋण राशश
time to time or 75% appraised value of the gold ornaments, whichever is
Loan Amount lower. Minimum limits Rs.0.50 Lakh
Loan Period 1 Year
INTEREST
MCLR+2.80 (wef-01.04.2016)
Should not be entertained as far as possible. Deserving cases may be
Partial delivery /
entertained following extant guidelines. A charge of Rs.300/- should be
Substitution of
levied for each Partial delivery / Substitution of ornaments in addition to
ornaments
apprising charges wherever applicable.
Commitment 1% pa. on un availed limit, if minimum of 75% of limit is not utilized for
Charges a continues period of 2 months in any quarter.
Appraisal /
Apprising charges as per the guidelines issued by the bank from time to
Reappraisal and
time and the portion to appraiser is up to 1.00 lakh Rs.200/- and above
Processing
1.00 LakhRs.150/- per lakh and maximum of Rs.1000/- per limit.
Charges
Other conditions As applicable to any other gold loans.
Sanctioning
AGM-10L, AGM@ZO-10L, AGM as ZM-10L, CM@ZO-10L
Powers
No.311/26/61/30.11.10,446/53/25/31.03.12,259/53/11/04.11.11,
No26/53/03 Dt.16.04.2013 363/53/16/16.01.12,240/53/20/10.09.1.
No.02/53/01/03.04.14, 206/53/13/22.09.2014, 322/53/20 Dt.11.12.14
No.85/53/9/13.06.2015, No.04/53/01/01.04.2016
1. Gold Loan Application (AB 32)
2. DPN (AB 6/7)
3. Risk Letter (AB 31)
4. Declaration (AB 62)
5. Right relinquishing letter, Wherever necessary (AB 33)
6. Letter of authority, wherever necessary (AB 24)

Page 39 of 78
शैक्षऺक ऋण
EDUCATIONAL LOANS
बायत व ववदे शो भें शशऺा
STUDIES IN INDIA & ABROAD
(Revised I.B.A. Model Scheme on Educational Loans -2011)
Secured admission in Institution accredited by ZO, through Entrance Test/
पात्रता Merit Based Selection process. Min. of 65% marks in qualifying
Eligibility examination in case of admission without test. The condition of qualifying
in entrance Test/Merit Based Selection is relaxed for studies abroad.
A) The eligibility for loan is determined based on employability of the
course and reputation of the institution concerned.
B) List of accredited institutions for all the courses is to be prepared by
Institute
the Zonal Offices, and individual scores have to be allotted based on
Eligibility
scoring methodology designated for the purpose.
Education Loans should be given to students who secure
admission in such accredited Institutions only.
Inland studies:
 Approved courses leading to Graduate / PG & PG Diploma conducted
by recognized colleges/ universities recognized by UGC/Govt./AICTE/
AIBMS/ICMR etc. Courses contained in the website
www.ugc.ac.inwww.eduction.nic.in&www.aicte.org.in are considered
to be eligible courses.
 Loan for Research work to students with master‟s degree in any of
the professional courses and admitted as a research scholar in
universities /Research institutes having due recognition/ established
by Govt. of India /State Govts/Academic bodies constituted either by
State or Central Government can be considered.
 Loan for evening or part time courses offered by approved educational
institutes and where the degree/post graduate diploma awarded
through such part time courses is recognized by Govt. of India/State
Govts/Academic bodies constituted either by State or Central Govt.
can be considered. However Loans should not be considered for
home-study/ correspondence courses with contact classes or
coaching classes.
Abroad studies:
Eligible Courses  Job oriented professional/ technical courses offered by reputed
universities, MBA, MCA, MS etc. Courses conducted by CIMA- London,
CPA in USA etc. Degree/diploma courses like aeronautical, Pilot
training, shipping etc. recognized by competent regulatory bodies in
India/ abroad for the purpose of employment in India/ abroad and
courses approved for financing as indicated in www.webometrics.info.
 Job oriented Diploma and certificate courses pursued abroad after
completion of Graduation Course in India are eligible for loan.
 ZLCC(A) is the competent authority for sanction of Education Loan
abroad for studying Diploma/ Certificate Course with under graduate
qualification in India. (HO Cir 007/53/01 dated 13.04.2015)
Admission under Management Quota :
Educational Loan for Admissions through management quota for Higher
Studies may also be considered with a suitable collateral security of not
less than 150% value of the sanctioned limit irrespective of quantum of
loan. However students qualified under merit quota but chooses to peruse
course under management quota may be considered under existing
norms of collateral security.
Part of study in India and part of the study abroad: To be
categorized as per the award of degree.

Page 40 of 78
 Need based finance to meet the expenses worked out will be considered
taking into account margins. No specific upper limit is suggested.
 Loans to individuals for educational purposes including vocational
courses up to ₹10 lakh irrespective of the sanctioned amount will be
considered as eligible for priority sector.
 However for loans at degree level courses in non-technical and
non-professional courses the maximum finance may be pegged at
Rs.1 Lakh keeping in view the lower future income potential for these
courses.
 For Nursing Courses the quantum of finance is restricted to fee
structure as approved by the State Government or regulatory body. It
is to be ensured that the student has financial resources to meet the
ऋण राशश funding gap.
Loan Amount /  In case of studies abroad, part cost of the study can be considered for
Indicative limit finance as requested by the student duly taking into consideration part
time jobs as permitted by the institutes to part fund the course costs.
 Reasonable lodging and boarding charges will be considered in
proportion to the course cost in case the student chooses / required to
opt for outside accommodation.
 Caution deposit, Building fund/refundable deposit supported by
Institution bills/receipts could be considered subject to the condition that
the amount does not exceed 10% of the total tuition fees for the entire
course.
 Purchase of books/ equipment‟s/ instruments/ uniforms / Purchase of
computer at reasonable cost, if required for completion of the course
etc. may be capped at 20% of the total tuition fees payable for
completion of the course.
One Top up loan for studies in India and one more top up loan (third loan)
Top up Loan for studies abroad may be considered. However total number of loans
does not exceed three for an individual at any point of time.
Up to Rs.4 L - Nil Above Rs.4 Lac -5 % (India) & 15% (Abroad)
Scholarship/ assistantship to be included in margin. Margin may be
Margin
brought-in on year-to-year basis as and when disbursements are made on
a pro-rata basis.
Loans up to Rs.7.5 lakh-Up to 10 Yrs. Loans above Rs.7.5 lakh- 15 Yrs.
Repayment Recovery of interest component during first 2 Years and fixing of EMI from
3rd year onwards may be considered
1 Year after completion of course or 6 Months after getting job whichever
Gestation period
is earlier.
Up to 7.50 Lac Above 7.50 Lac
INTEREST
MCLR+2.00 MCLR+1.70
Simple interest during course & gestation period
 General concession of 0.50% in interest rates for Girl students
sanctioned from 01.07.2005
 Interest concession of 50 basis points to students securing 90% or
above in qualifying examination for graduation level courses & In
respect of loans for pursuing P.G. courses, similar interest rebate
of 50 basis points to students who secured 80% or above in
Interest aggregate / equivalent grade at qualifying degree/graduation level
Concession examination.
 Top 50 rankers in case of State level and top 100 rankers in
case of National level in the Entrance Tests conducted for
admission to various professional courses can be offered
educational loans at 100 basis points lower to normal rate of
interest subject to a minimum of base rate.
 Concession of 0.50% on applicable rate of interest to Staff

Page 41 of 78
Children, subject to minimum of Base Rate.
However, students securing admission in Deemed Universities and Private
Educational Institutes which conduct entrance test exclusively for their
own institutes are not to be offered this concession.
Panel Interest 2% for overdue amount of overdue period for limit above 2.00 Lac.
Interest Subsidy Applicable to EWS students with gross parental/ family income up to 4.50
(CSIS scheme) Lakh per year as on date of availing loan, Interest subsidy is available
(Cir.236/53/10 during moratorium period for recognized Technical/professional courses in
Dt.24.09.2010) India only once either for undergraduate or post graduate.
Applicable to students from Minority communities with gross parental /
Interest Subsidy
family income up to 6.00 Lakh per year as on date of availing loan for
(Padho Pardesh
overseas studies to pursue approved courses at Master, M.Phil & Ph.D
scheme for
level for loan up to 20 Lakh sanctioned and disbursed after 01.04.2013.
Minority for
Interest subsidy is available only once during moratorium period.
Abroad studies)
(Cir.181/53/11 Dt.25.08.2014)
Interest Subsidy Students of EBC & OBC secured admission in the university abroad for
(Dr. Ambedkar Masters, M.Phil & Ph D level courses with overall family income of not
Central sector more than 1.00 Lac per annum for EBCs and 3.00 Lakh for OBCs are
scheme for EBC eligible for interest subsidy during moratorium period i.e, course period
& OBC for plus one year or six months after getting job, whichever is earlier.
abroad studies) (Cir.178 Ref. 53/16 Dt.11.08.2015)
Up to 7.50 Lakh Above 7.50 Lakh
No third party guarantee & 100% Collateral security.
No collateral security. Staff children need to furnish collateral
Security /
Coverage under NCGTC at Banks security only after retirement of their
Guarantee
cost. parents.
Parents / Guardian to be joint borrowers & assignment of future income of
the student.
Life insurance: with the consent of the student availing Education Loan,
life insurance policy may be arranged.
Asset Insurance: Appropriate insurance for collateral security may be
Insurance done immediately after disbursement of the loan and also renewed
annually till the loan is repaid in full.
Liability Insurance: Wherever borrower opted for the insurance
guidelines of circular No.198 ref.51/08 dt., 12.08.2013 may be followed.
Only for studies abroad, processing fee as applicable are to be collected
Processing
initially at the time of sanction and to be refunded upon the student
charges
taking up the course and availing the loan.
Admin./Upfront/
Pre-payment Exempted from levying these charges
Charges
Applications for Educational Loans from eligible student can be accepted
either at the Bank branch near the residence of parents or to the
Loan educational institution. The KYC compliance for the purpose of loan has to
sanctioning be done by the Branch nearest to the residence of the parents. The loan
Branch account may be transferred to the branch near to the educational
institution for the convenience of monitoring, at the request of the
borrower.
AM-3L, DM-4L, SM-8L, CM-20L, AGM-30L
Sanctioning
Zonal Manager shall be the sanctioning authority for loans to be given for
Powers
the purpose of pursuing Nursing, Paramedical Courses.
No.56/53/5 Dt.09.05.2012, No.86/53/06/28.05.2012,
No.53/9/18.06.2012, No.213/53/16/22.08.12, No. 220/53/7/24.08.2012,
Circular No.262/53/24/27.09.12. No.344/53/34 Dt.21.11.2012, No.382/53/35
Dt.11.12.2012, No.416/26/57/01.01.2013,239/53/13/05.09.2013.
No.208/53/14 Dt.22.09.2014, 04/53/01/01.04.2016, 25/53/2/18.04.2016

Page 42 of 78
1. Application for Educational Loan in prescribed format
2. Education Loan agreement (AB 3)
3. Deed of Assignment (AB 46)
4. Special Power of Attorney for abroad study (AB 47)
5. General Form of Guarantee (Wherever applicable) (AB 8)
6. Letter to be obtained from Minor after attaining majority, wherever applicable (AB63)
Guidelines on Extension of moratorium period on Education loan

(HO CIR NO 459 53/42 DT 07.03.2017)
Extended repayment term may allow up to three spells of moratorium (not exceeding six
months each) during the life cycle of the loan, taking into account spells of
unemployment/ under employment, without treating the exercise as restructuring,
subject to appropriate inclusion of the same in terms and conditions of the loan
agreement.
However Bank would be required to maintain higher provisioning of 5% during the said
additional moratorium period and one year thereafter. Any other concession or
moratoriums (exceeding those specified in the original sanction) for a borrower under
financial difficulty would be treated as restructuring and attract prudential norms
thereof.
The facility of extended repayment period and increased number of moratoria for
repayment be extended to existing Education Loan borrowers whose accounts are
classified as “standard” subject to the following conditions.
a. The loan account eligible as above should be a standard asset at the time of
considering revision in repayment term.
b. Extension of repayment term should be with prospective effect only and no
retrospective effect should be given for previous repayments made.
c. The extension should be need based and the maximum extension allowed is six
months only (Maximum three spells)
d. Borrower to submit specific letter of request for each spell of (6 months)
extended repayment term duly explaining the reasons thereof.
e. To keep account wise record of proper approval by Branch Head of extension of
repayment term, confirming that the extension of repayment is for the economic
reasons expressed in writing by the borrower.
f. If the borrower covered under liability insurance, the liability insurance shall be
covered up to the loan period fixed at the time of sanction only. For extended
repayment period, the liability insurance will not be covered.
Branches are advised to obtain supplement to Composite agreement from the

borrowers/co-obligants, who have executed Composite Agreement at the time of
sanction, for extension of the repayment period due to unemployment/
underemployment etc.
CHECK LIST:


Page 43 of 78
4 Credit Investigation Report (CIR) is on record
5 Proof of Admission and estimate of Cost of Study are obtained?
6 Eligibility criteria (Student eligibility, Institute eligibility, Courses eligible, Quantum of

finance, Number of Loans, Repayment term, Margin, Security, Coobligation/ Guarantee)
is followed, as per guidelines? (HO Cir No. 86/53/6 dt 28.05.2012)
7 Certificate of Inspection of Collateral Securities is available (in the prescribed format)?
8 Manager‟s certificate of inspection of collateral security of properties and its valuation

(RF 216) is kept on record.
endorsement of sanction on the appraisal?
10 Is the loan is processed through LAPS?
11 All standard terms & conditions and case specific conditions have been stipulated in
the letter communicated to the borrower separately by the branch
12 Terms and conditions have been duly acknowledged by the Borrower and Guarantors
and/or Co-obligants
17 Proper mortgage is created in line with Bank Advocate‟s opinion (with Original Title
19 RF 255 is registered with SROs (wherever applicable)
20 EC is obtained after registration of RF 255
21 Release of loan is made in installments as per the progress of study
22 Interest is charged as per terms of sanction
23 Branch has written to the College / University about sanction of Educational Loan to
the student
24 Whether acknowledgement received from college?
25 Are periodical progress reports and Fee Paid Receipts obtained?
26 Whether address, mobile number, email id and details of employment are obtained,
after securing job

Page 44 of 78
कौशऱ विकास कोसम के शऱए ऋण
EDUCATIONAL LOAN FOR SKILL DEVELOPMENT COURSES
Any individual who has secured admission in a course run by Industrial
Training Institutes (ITIs), Polytechnics or in a school recognized by central
or State education Boards or in a college affiliated to recognized
university, training partners affiliated to National Skill Development
पात्रता Corporation (NSDC)/Sector Skill Councils, State Skill Mission, State Skill
Eligibility Corporation, preferably leading to a certificate / diploma / degree issued
by such organization as per National Skill Qualification Framework (NSQF)
is eligible for a Skilling Loan. The Government of India/State
Governments may, from time to time, notify institutes/organizations for
the purpose.
Courses run by above mentioned Training Institutes aligned to National
Training Courses Skill Qualification Framework (NSQF) shall be covered by the Skill Loan.
There is no minimum course duration.
Institute Loans should be given to students who secure admission in accredited
Eligibility. Institutions only. Accreditation not required for courses run by institutions
of Ministry/Dept./Organization of the Government/Organisation supported
by National Skill Development Corporation or State Skill Missions/ State
Skill Corporations. Branches have to get administrative clearance from
Zonal Office for sanction of Education Loans under Skill loan scheme for
students got admission in non accredited institutions.
There is no specific restriction with regard to the age of the student to be
eligible for skilling loan. However, if the student is a minor, while the
Minimum Age
parent executes documents for the loan, the bank will obtain a letter of
acceptance/ratification from him / her upon attaining majority.
Loans will be in the range of Rs. 5,000/- to Rs. 150,000/-. The estimated
ऋण राशश per month fees, based on sector & NSQF level, will be available with the
Quantum of NSDC. Skill loan could be availed by beneficiaries of other grant/reward
Finance based Government schemes for skill training to cover the cost of such skill
training not covered under such grant/ reward.
Tuition/ course fee. Branches shall pay such tuition/ course fee directly to
the Training Institute. Any other reasonable expenditure found necessary
Expenses
for completion of the course including but not limited to assessment fee,
Considered For Examination fee, Library charges, Laboratory fee, Caution deposit,
Loan Purchase of books, equipments and instruments (As such courses are
localized boarding, lodging may not be necessary based on the cost of
living in the particular area. However, wherever it has been found
necessary, the same could be considered on merit).
Margin 10% of the total course amount.
 Loans up to Rs.50000/-: Up to 3 years
Repayment  Loan of Rs.50000/- to 1 Lac:- Up to 5 years
 Loan above Rs.1 Lakh: – Up to 7 years.
 Course of Duration up to 1 year: 6 months from completion of the
course.
Gestation period
 Courses of Duration above 1 year: 12 months from completion of the
course.
Parents / Guardian to be joint borrowers & assignment of future income of
the student.
Security / No collateral for such skilling loan will be taken. Branches have option to
Guarantee apply to the National Credit Guarantee Trust Company Ltd (NCGTC) for
credit guarantee against defaults and NCGTC will provide such guarantee
at nominal guarantee fee which shall not exceed 0.5% of the amount

Page 45 of 78
outstanding. Such credit guarantee cover will be for a maximum of 75%
of the outstanding loan amount (including interest, if any). In special
cases such as the North Eastern region (NE) and Left Wing Extremism
(LWE) affected areas the percentage may be increased on the discretion
of NCGTC. Branches have to debit the guarantee fee to the borrower
account and remitted to respective Zonal Office.
Life insurance/liability insurance policy for the students availing Education
Insurance
Loan, with the consent of the student may be arranged.
UPTO Rs7.50 lacs – MCLR PLUS 2%
INTEREST
ABOVE RS.7.50 LACS – MCLR PLUS 1.70%
 Servicing of interest during study period and the moratorium

Servicing of
period till commencement of repayment is optional for students.
Interest during
 1% interest concession may be provided by the bank, if interest is
Moratorium
serviced during the study period and subsequent moratorium
Period
period prior to commencement of repayment
Processing
No Processing fee will be charged
charges
The borrower can repay the loan any time after commencement of
repayment without having to pay any prepayment charges. In case a
Pre-payment student is not able to complete the course because of accident/death/
Charges disability the bank can seek a pro-rata reimbursement of the unfinished
portion of the course amount from the training institute. This will reduce
the loan burden on the student.
Sanctioning
Powers
Others As per Existing Education Loan scheme.
Circular No.221/53/21/16.09.2015, No.04/53/01/01.04.2016

Page 46 of 78
वप्रशभमय शैक्षऺक संस्थाएं
PREMIER EDUCATIONAL INSTITUTIONS
पात्रता Students getting admission in to Business Management / Engineering in
Eligibility the following institutions:
Max.
Institute Margin Security
Loan
Indian Institute of
Technology (IIT)
Need based genuine expenditure related to the

Birla Institute of
Technology and Science
(BITS)
Up to 10 Lakh-
Indian Institute of
course. Max. of Rs.20 Lakh

NIL
Management (IIM)
Above 10 Lakh
Xavier Labour Relations
– 50% of limit
Institute (XLRI)
sanctioned
Management Dev. Institute
(MDI)
10%
SP Jain Institute of
Management and Research
(SPJIMR)
Institute of Mgt. Technology
(IMT)
Coll. Security
Jaman Lal Bajaj Institute of
of 50% of
Management Studies
limit
(JBIMS)
sanctioned
Somaiya Institute of
Management Studies and
Research.
Netaji Subash Institute of
Parents /
Technology (formerly Delhi Rs.3.80
NIL spouse as joint
University of Technology) Lakh
borrowers
NSIT
Up to 4 Lakh-
Parents as joint
=>Rs.4
Rs.7.50 borrowers.
Indian Institute of Information Technology Lac–Nil
Lakh Above 4 Lakh-
(IIIT) >Rs.4
Earning
Lac-10%
Parents / Third
party guarante
Indian School of Business Parents /
Rs.25 5%
(ISB), spouse as joint
Lakh
Hyderabad and Mohali borrowers
1. ISB, Hyderabad -Hi-tech City Branch, Hyderabad.
Nodal Branch
2. ISB, Mohali -Mohali Branch.
Co-obligation Co-obligation of earning parents / spouse
Holiday period Course period+ 1 Year or 6 months after getting job, whichever is earlier.
Repayment Maximum 10 Years
Liability Insurance: is mandatory. Circular No.198 ref.51/08 dt.,
Insurance
12.08.2013 may be followed.
Applicable to EWS students with gross parental / family income up to 4.50
Interest Subsidy
Lakh per year as on date of availing loan up to 31.03.2009 and
(CSIS scheme)
outstanding as on 31.12.2013. Interest subsidy is available during
(Cir.492/53/35
moratorium period for recognized Technical/professional courses in India
Dt.08.03.2014)
only once either for undergraduate or post graduate.

Page 47 of 78
FOR IITs, BITS, IIM, XLRI, MDI, SPJJMR, IIIT, ISB
INT RATE IS MCLR + 0.20
Interest
FOR IMT, SOMAIYA INST OF MGT, JAMAN LAL BAJAJ, NSIT
INT RATE IS MCLR + 1.45%
Panel Interest 2% for overdue amount of overdue period for limit above 2 Lac.
Concession of 0.50% on applicable rate of interest to Staff Children or as
Concessions/ per MOU, whichever is lover, subject to minimum of Base Rate.
Exemptions All types of Educational loans are exempted from levying Processing
/Administrative/ Upfront fee/ Pre-payment Charges.
Sanctioning
Powers
Cir. Letter No.666/53/E/3 Dt.15.06.2011, 666/53/EL-Mou/25/11.05.11,
No.182/53/08/23.08.2011, No.448/53/27/31.03.2012. No.382/53/35
पररपत्र Circular Dt.11.12.2012, No.168/53/11/27.07.2013, No.443/53/30/05.02.2014.
No.438/53/27/18.03.2015. No.439/53/28/18.03.2015,
No.63/53/8/02.06.2015,
The guidelines on Educational Loans to ISB students for the academic year
2018-2019 are as follows: (HO CIR NO 415 – 53/27 – DT 16.02.2018)
Eligibility All students admitted for the Post Graduate programme in

Management courses offered by ISB, Hyderabad/Mohali
Loan Amount Need Based, subject to maximum of Rs.30.00 lacs or 95% of the
course cost, whichever is lower
Margin 5%
Rate of Interest 1 Year MCLR + 0.20% floating (No further concessions for Girl
Child/Merit students
Collateral security Need not be insisted
Co obligation Co obligation of earning parents/spouse. Suitable third party in case

parents/spouse has no earning.
Holiday Period Course period + 1 year or 6 months after getting job whichever is
earlier
Repayment Maximum repayment period is 10 years. The accrued interest during

the holiday period is to be added to the principal while repayment in
EMI is fixed
Powers of sanction The Branch Manager of Hi-Tech city, Hyderabad and Mohali Branch of
Chandigarh Zone or ZLCC-A are empowered to sanction Education
Loans to ISB students for admission of 2018-2019. These powers are
only for sanction of Education loans to ISB students for 2018-2019.
Liability Insurance Mandatory
Contact point To avoid delay in processing, ISB students are exempted from contact
Verification point verification. Branches have to obtain copy of PAN Card of the
applicant/student before sanction

Page 48 of 78
Role of Nodal Nodal Branch should ensure compliance with KYC guidelines for
Branches (Hi Tech student and parent through our branches nearer to the place of their
city branch and domicile and if required, can avail the services of such branches for
Mohali Branch) execution of loan documents by student and parent.
Nodal Branch is advised to maintain liaison with the Institute to
monitor the loan account, tracking the employment details, follow up
and recovery of loan and should ensure timely service to the students
to have a longer relationship.
The loan accounts are usually maintained at the Nodal Branches till
closure. The loan accounts may be transferred to the choice of the
students for their operation convenience after the completion of study.
Role of other Other Branches should extend full cooperation to Nodal Branches in
Branches complying with the KYC guidelines and getting the documents
executed.
Branches can process the loan applications received from ISB students
and forward them to Nodal branches with their
recommendations/remarks. Branches other than the above
mentioned two branches should not sanction/disburse the education
loans for ISB students. Branch Managers are advised to collect
information from Nodal branches about ISB students who secured
placements nearer to the operational area of the branch to cross sell
our other products.
Note: Copies of Aadhar Card, PAN Card, Mobile Number and e-mail ID of the
applicant/Student is to be mandatorily obtained before sanction of the loan.
तनजी भेडडकर व डेंटर कॉरेज भैनेजभें ट सीट (ए ऩी )

PRIVATE MEDICAL & DENTAL COLLEGES MANAGEMENT SEATS (AP)
Secured admission under EAMCET Ranking based Management seats
Eligibility
Age Criteria 12-30 yrs
Course Medical & Dental
Loan BG
ऋण राशश
MBBS Rs.8.20 Lacs (5 Yrs.)
Loan Amount Rs.10.00 Lacs
BDS Rs.348750/- (4 yrs.)
Maximum Loan First year fee reimbursement should not be considered
Margin 10%
Repayment Max. 72 Months
Gestation period
is earlier.
Security / For Loans- Security as in case of Studies India
Guarantee For Bank Guarantee - 100% collateral security
MCLR+1.20
INTEREST Concession of 0.50% on applicable rate of interest to Staff Children,
subject to minimum of Base Rate.
General concession of 0.50% in interest rates for Girl students sanctioned
Concessions
from 01.07.2005 for all type of educational loans
All types of Educational loans are exempted from levying Processing/
Exemptions
Administrative/ Upfront fee/ Pre-payment Charges
Sanctioning
Powers

Page 49 of 78
कभशशणमर ऩॉईरेट प्रशशऺण
COMMERCIAL PILOT TRAINING
पात्रता Secured admission in Flying training Institutes approved by DGCA &
Eligibility Reputed Abroad Institutes.
Age Criteria 12-30 yrs
Course SPL PPL & CPL Courses
ऋण राशश
Need based
Loan Amount
Max. of 10 Lacs for Inland & 20 Lacs for Abroad
Maximum Loan
First year fee reimbursement should not be considered
Margin As in the case of Studies India & Abroad schemes
Repayment 5-7 Yrs
Gestation period
is earlier.
Security / As in case of Studies India & Studies Abroad scheme
Guarantee Sufficient Insurance coverage for the life of the student is must
Up to Rs.7.50 Lacs – Above Rs.7.50 Lacs
MCLR PLUS 2.00% MCLR PLUS 1.70%
INTEREST
Concession of 0.50% on applicable rate of interest to Staff Children,
Panel Interest 2% for overdue amount of overdue period for limit above 2 Lac
Concessions
Exemptions
Sanctioning
Powers
ववदे शों भे योजगाय

EMPLOYMENT ABROAD
पात्रता Eligibility Qualified Technical & Professional graduates
Age Criteria Below 30 yrs.
Course To go abroad for employment
ऋण राशश
For Air fare & Initial expenses
Loan Amount
Maximum Loan Rs.1 Lac
Margin 25 %
Repayment 36 EMI
Gestation
One month
period
Security / 100 % Collateral & LIC Policy
Guarantee Two co-obligants
BR+4.00%
INTEREST
Concession of 0.50% on applicable rate of interest to Staff Children,
Concessions
from 01.07.2005 for all type of educational loans.
All types of Educational loans are exempted from levying Processing
Exemptions
/Administrative/ Upfront fee/ Pre-payment Charges

Page 50 of 78
एफीकैल्स A B C A L S
(Andhra Bank Career Advancement Loan Scheme)
पात्रता Eligibility Permanent employees of reputed organization.
Age Criteria Balance service not less than 10 yrs.
Course Higher studies/Skills
ऋण राशश
Need based genuine expenditure related to the course
Loan Amount
Maximum Loan Rs.7.5 Lac
Margin 10%
Repayment 60 EMI
Gestation
One month
period
Security 100 % Collateral
Guarantee Not to be insisted
Up to 3 Years Above 3 Years
Concession of 0.50%
Up to 2.00 Above 2.00
INTEREST on applicable rate of
MCLR+4.20 Lakhs Lakhs
interest to Staff
MCLR+5.45 Children.
MCLR+4.45
Panel Interest 2% for overdue amount of overdue period for limit above 2 Lac
Concessions
Exemptions
Sanctioning
Powers
तनजी व्मावसातमक कॉरेज

PRIVATE PROFESSIONAL COLLEGES
Merit & Poor Students (Family income should not be more than 1 Lac pa.)
Eligibility
Course Graduation & above Technical & Professional courses
ऋण राशश
Need based genuine expenditure related to the course
Loan Amount
Maximum Loan Rs.15000/-Free seat Rs.50000/-Payment
Margin Nil
Repayment 5 Yrs including gestation period
Gestation period 2 yr. after completion of course or 6 Months after getting job
Security / NIL
Guarantee Bond / undertaking from borrower to pay the loan
Rate of Interest
MCLR+1.20%
Concessions
Exemptions

Page 51 of 78
CHANDRANNA VIDESHI VIDYA DEEVENA SCHEME (2016-17)
Andhra Pradesh State Kapu Welfare and Development Corporation Limited
(APSKWDCL), a Government of Andhra Pradesh undertaking, has introduced
“Chandranna Videshi Vidya Deevena Scheme (2016-17)” for the economically weak
Kapu youth in Andhra Pradesh. Under this scheme, a financial assistance of Rs.10.00
lakhs (Rupees Ten Lakhs only) shall be granted to the selected applicants through
the prescribed process of Andhra Pradesh State Government. This assistance shall
be given for studying overseas in recognised universities for tuition and living
expenses.
With regard to this, our Bank has entered into a memorandum of Understanding
(MOU) WITH APSKWDCL ON 31.12.2016. This MOU is valid for period of one year
initially from the date of executing this MOU i.e. 31.12.2016. The salient features
of the MOU with APSKWDCL are as follows.
 The scheme is applicable to the students belonging to the economically weak

Kapu youth in the state of Andhra Pradesh State only
 The scheme is applicable for studies overseas in recognized universities to

prosecute i.e. Graduate (only MBBS), Post Graduate or Ph.D. courses only.
 APSKWDCL will provide the list of students and their contact details and other
relevant information relating to the student and the university that he/she has
been accepted into. This does not include documentation but only the
information provided by the student to APSKWDCL.
 The remaining balance (after financial assistance of Rs.10.00 lacs sanctioned

by APSKWDCL) only can be granted as Education Loan. Branches/Controlling
Offices should follow the IBA Model Education Loan Scheme and as per the
Bank Guidelines of Education Loan Scheme in force with regard to processing
of Education Loan Application and documentation.
 As per MOU, the Corporation will publish the name of ANDHRA BANK as
preferred Bank.
 The Corporation has already opened their Savings Bank account with our
Suryaraopet Branch (Vijayawada)
(Circular No 412 – Ref no 53/34 dated 31.01.2017)

Page 52 of 78
NTR VIDESHI VIDYADARANA SCHEME
As part of Backward Classes Sub Plan 2016-17, The Government of Andhra Pradesh
has launched NTR VIDESHI VIDYADARANA SCHEME for BC students to pursue
Post Graduate studies abroad. Every year 1000 BC students will be granted financial
assistance of Rs.10.00 lakhs each under the scheme. With regard to this, our Bank
has entered into a Memorandum of Understanding (MOU) with APBCWD on
31.12.2016. This MOU is valid for a period of one year initially from the date of
executing this MOU i.e. 31.12.2016. The salient features of the MOU with APBCWD
are as follows:
 APBCWD has nominated Andhra Bank as its preferred financier.
 The financial assistance by the Government shall be given towards tuition fee
and living expenses only fo Post Graduation and Ph.D. courses
 The registration shall be made under the scheme online at

http://www.apbcwelfare.cgg.gov.in
 Assistance provided by Andhra Pradesh Government of Rs.10.00 lacs, under

the scheme may not be sufficient to meet the course fee and expenses.
 APBCWD will provide the list of students and their contact details and other
relevant information relating to the student.
 The applications are to be considered as per the rules/norms/guidelines of the

bank which are applicable at the relevant point of time.
 The education loans will be strictly as per Bank Education Loans scheme in
force at the relevant point of time of sanction.
 The Bank may not consider loans to every applicant referred by APBCWD.
Bank shall process the application and to consider sanction the loans only if
the applicant is in compliance with our policy guidelines/Education loan
scheme in force as on the date of sanction.
 These guidelines are applicable to all the branches located in the state of
Andhra Pradesh only.
*All Terms and Conditions of the scheme are strictly as per the MOU entered.
(HO CIR NO 433 REF NO 53/39 DATED 16.02.2017 – MOU is enclosed to this circular)

Page 53 of 78
VIDYA LAKSHMI PORTAL
The Ministry of Finance, Government of India has launched online portal by name “VIDYA
LAKSHMI PORTAL” under Pradhan Mantri Vidya Lakshmi Karyakram for the benefit of
students seeking Educational Loans. Our bank has also registered as a member bank for
sanction of Education Loans received through Vidya Lakshmi Portal. The student
borrowers will submit their Education Loan application to three member banks registered
with the Portal.
The applications received from Vidya Lakshmi portal will automatically be pushed to
respective branches/Zones in our internal Vidya Lakshmi Portal in Reports server.
Branches/Zones can process the applications and accord sanctions to all eligible students
duly following the laid down policy guidelines and updating the status of the application
in Vidya Lakshmi Portal. The response given by the Branches will automatically reach to
the student applied for Education Loan. Once the application is sanctioned by other
bank, it will automatically be closed in our internal Vidya Lakshmi Portal.
Head Office, vide Cir No.415 dated 01.02.2017, informed the field level functionaries
regarding entry of all Education Loan applications, including applications received in
physical format, through Vidya Lakshmi Portal.

Page 54 of 78
HOUSING LOANS
In any area like Rural, semi urban, urban, Metro etc.

Individuals either singly or jointly with family members
Joint applications of persons not related to each other and the property is in
Eligibility joint names of all applicants and entire property is mortgaged can also be
considered by ZLCC-A
Construction/Purchase of House/Flat/Site/Extension/Renovation/Repairs.
Cost of rooftop solar PV (photovoltaic) plants including other incidental

Purpose
expenses like wiring etc., up to a maximum of Rs.75000/-as a component
of housing loan project cost/ house improvement loan, subject to income
eligibility and LTV may be considered.
 Borrower‟s age as on date of loan– 21 to 65 years.
 Loan to co-terminate with the age of superannuation.
 75 yrs. as on due date of loan for persons with assured income.
 However, in case due date of loan stretches beyond 65 years – liability
insurance is mandatory till due date of loan. ZLCC(A) is the competent
Age Criteria authority to waive the liability insurance, if the collateral security
coverage is more than 300%. In case the collateral security coverage is
less than 300%, CLCC/HLCC2(B) will be the competent authority for
waiver of liability insurance.(Cir no 450/53/41 dated 27.02.2017).
 Residual age of House/Flat should be 10 years over and above the
payment tenor proposed for the loan.
SALARIED CLASS: Cir no:42 53/5 dated 12.05.15
Maximum amount of EMI that can be permitted for proposed loan is to be
60% of Net salary drawn by the employee as per latest salary statement.
While taking net salary for this purpose, add back Income tax deduction,
Voluntary PF contribution and any other deduction which is in the nature of
a temporary recovery from salary (say salary advance recovery etc.) and
Income exclude non regular income (like arrears, bonus etc.) as reflected by the
eligibility salary statement.
NON SALARIED CLASS: Maximum permissible EMI 65% of the monthly
average income of preceding two years (as reflected in IT Returns), subject
to the condition that the monthly income after deducting existing and
proposed loan installment does not fall below 30% of gross salary.
Depreciation, if any, may be added back and wind fall income or income not
regular in nature (Capital gains etc.) is to be excluded
Co-applicant Spouse of the applicant /Family Members / Blood relations / others
Loan amount Margin Loan Eligibility
Construction/purchase of new house/flat
Up to 20 Lakh 10%
ऋण राशश including cost of additional amenities
Loan Amount related with said house/flat, registration
>20 to 75 Lac 20% charges, stamp duty, property
(Cir 42/53/5 dt
12.05.15) insurance, service tax and other
statutory dues, if any, less applicable
Above 75 Lac. 25%
margins mentioned in this table.

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CIR NO 66 REF 48/04 DATED 15.06.2017
RISK Standard
Category of Loan LTV RATIO (%) WEIGHTS Asset
(%) Provision
<= 80% 35%
UPTO RS.30.00
>80% AND <=
LACS 50%
90%
ABOVE RS. 30.00

0.25%
LACS AND UPTO Up to 80% 35%
RS.75.00 LACS
ABOVE RS.75.00
<= 75% 50%
LACS
Interest accrued during the gestation period shall be capitalized, where the
sanctioned limit along with the interest chargeable during gestation period
(revised EMI) is within:
Capitalization
1) 60% of monthly Net income of applicants/co-applicants, if they are
of interest
salaried
during
2) 65% of monthly Net income of the applicants/co-applicants, if they
construction
are non-salaried
period
If revised EMI exceeds 60% for salaried class or 65% for non-salaried class,
it should be stipulated that the interest accrued during the gestation period
has to be repaid as and when charged.
Branches can sanction 2 housing loans for construction/Purchase of
House/Flat at normal Housing loans rate of interest. From third housing
loan, commercial rate of interest is to be charged i.e., rate of interest
applicable to Mortgage loans. Loans considered for Repairs/extension/
construction of additional floor(s) thereon to the existing dwelling unit
Housing
should not be taken as second Housing loan. It should be treated as one
Maximum
loans
housing loan. (Cir no 42/53/5 dated 12.05.2015)
If Housing loans are allowed in a single Apartment Complex/ or promoted
by single builder, for more than 10 proposals or 30% of the flats, whichever
is lower, branches should obtained administrative clearance from Zonal
Office
Rural-50 Lac, Semi-urban-Rs.150 Lac. Urban-300 Lac, Metro &
Loan
conglomeration around metro- Rs.500 Lac. CLCC & ZLCC (A) can sanction
amount
beyond area wise ceilings up to their discretionary powers.
 Finance for purchase of plots situated in residential areas within the
Municipal/Corporation limits but not in agglomerations and Sites offered
for sale by state owned agencies like Housing Boards etc. in Metro,
Urban and Semi-urban areas can be made.
 Loan eligibility is as applicable to housing loans and based on repayment
capacity for both the components of loan– i.e., for plot and construction
together subject to a maximum of 100 Lakhs for plot and minimum
Loan for Open margin in 40%
Plots  Construction has to be commenced within 12 months, from the date of
1st disbursement of loan for purchase of plot and the construction there
on should be completed within 30 months from the date of
disbursement of first installment of loan for purchase of plot, else liable
for de-classification of account and levying of commercial rate of
interest.

Page 56 of 78
If an Housing project is enrolled/approved by a Public sector Bank or
Enrolling of
reputed Private sector bank or Public sector lending institution, on getting
builder for
proof by way of taking out document either from that Banker/Lending
financing
institution or from their official website, our Bank need not enter or enroll
Housing loans
afresh for financing Housing loans for such projects.
Age of the House - Up to 5yrs- 10.00 Lakhs
Repairs/ Above 5 & up to 25 yrs.-15.00 Lakhs.
Renovation The aggregate of the outstanding liability under existing Housing loan
Loan account and the proposed supplementary loan should not be more than the
(HO CIR NO following.
34/53/2 Dated  80% of the value of the property for loans upto Rs.75 Lakh as on date.
11.05.2015)  75% of the value of the property for loans above Rs.75 Lakh as on date.
 25% Margin on estimated cost to be maintained.
Margin Mentioned in the Loan amounts
Gestation
Maximum of 30 Months from disbursement of first installment.
period
Max. 30 Years (In case of repairs, maximum repayment period is 240
Repayment months depending upon repayment capacity, irrespective of the remaining
period of existing Housing loan)
Guarantee/
Co-obligation/ Satisfactory third party guarantee may be stipulated
Co obligation
Mortgage of House/Flat to be constructed / purchased.
Security ECS debit mandate, where the borrower is maintaining operative/ salary
account with other Banks.
Asset Insurance: Appropriate insurance for its full value may be done immediately
after disbursement of the loan and also renewed annually till the loan is repaid in full.
Insurance
Liability Insurance: Wherever borrower opted for the insurance guidelines of circular
No.198 ref.51/08 dt., 12.08.2013 may be followed.
Slab Women Others Applicable subject to
MCLR+0.10 obtaining a score of
INTEREST Up to 75 Lakh MCLR + 0.05
60 & above as per
(For Rated
MCLR + 0.15 MCLR+0.20 New Rating Model for
Accounts) Above 75 Lakh
Pricing as per Cir.
Repairs / MCLR + 1.20 MCLR +1.20 No.364/53/17 Dt.
Renovation 16.01.2012.
Repayment Above 5 & up to
Up to 5 Yrs Above 10 Yrs.
INTEREST period 10 Yrs
(For un-rated Up to 25 Lac BR+0.75 BR+1.00 BR+1.25
accounts) 25- 30 Lac BR+1.00 BR+1.25 BR+1.50
Above 30 Lac BR+1.75 BR+2.00 BR+2.25
1% of Interest subvention is available to Individuals for construction /
Interest
purchase of new house or extension of existing house after 01.10.2009
Subvention
provided the loan amount is up to 15 Lakh and unit cost does not exceed 25
(Latest Cir.
Lakh. 1% subvention will be computed for 12 months on the disbursed
No.385/53/36
amount.
Dt.11.12.12)
No interest subvention for purchase of plot of land.
0.50% of the sanctioned limit subject to a maximum of Rs.10,000/-
Processing + ST at the time of processing of loan application.
Charges No charges up to 31.10.2017. (Remuneration to HLC shall be paid
from our P&L) HO CIR NO 90/53/04 dated 30.06.2017
Administrative Up to 10 Lac Rs.100/-, Above 10 Lakh & upto15 Lakh-Rs 150/- Above 15
Charges Lacs 250/- Per quarter.
Remuneration 0.25% of the limit disbursed or Rs.1,00,000/-, whichever is lower, both for
to HLC new proposals and take over accounts also. (To be debited to P&L a/c)
Penal Interest Penal Interest @ 2% on the default amount will be charged
Pre-Payment Floating ROI- NO Prepayment Charges

Page 57 of 78
Charges Fixed ROI- 2 % flat on pre-paid amount, where the repayment is fixed
beyond 36 months. Pre-Payment charges may be waived, in case the
payment is from own savings /windfall gains.
Branches should conduct unit inspection on various stages of construction
before disbursement of installments. Second verification for every unit
should be conducted after 2 years from the date of first disbursement. For
Unit
SMA2 accounts the verification is to be conducted every year.
Inspections
(Cir no 42
Zonal Office has to submit a confirmation to Head Office certifying that
53/5 dated
respective branches have inspected all housing loan as mentioned above,
12.05.15)
on annual basis. Retail Credit Department, Head Office has to submit a
report to CRMC on this aspect on annual basis
Depending upon Age, Qualification, Residence stay, Transferability,

Credit Rating
Employment / Profession, Gross Income, Net take home pay, Spouse
employment, No. of dependent, Dealings with Bank, Loan Repayment
(Cir.163/26/34
history, Margin, Contribution and Net worth of the Borrower rating will be
Dt.06.08.2010)
Details of charge over any property is to be filed with CERSAI within 30
days from creation to prevent fraudulent transactions arising out of same
assets being mortgaged with multiple lenders.(Cir.18/11/01 Dt.20.04.11 &
CERSAI
179/11/03 Dt.20.08.2011)
CERSAI registration charges of Rs.250/-+ST for loan up to 5 Lakh &
Rs.500/-+ST for loan above 5 Lakh will be charged.
Credit Branches (other than Rural) have to obtain Credit Information Report from
Information CIBIL (Cir. No.238/26/9 Dt.18.10.2011)
Report (CIR) CIBIL enquiry charges ranging from Rs.33/- to Rs.100/- will be charged.
Loan up to 1 Lakh Rs.250/-
Loan above 1 Lakh
0.25% (Max. of Rs.750/-)
& up to 5 Lakh
Legal fees
0.20% (Minimum of Rs. 1,000/-for 1st property.
Loan above 5 Lakh Minimum Rs.750/- for each additional property or
Maximum of Rs. 10,000/- whichever is lower)
0.25% of the value or Maximum of Rs. 2,000/- for open site, 0.25% of the
Engineer
value or Maximum of Rs. 10,000/- for other properties (building etc) and
Valuation fees
50% of the applicable charges for revaluation will be charged.
Loans to individuals up to ₹28 lakh in metropolitan centres (with population
of ten lakh and above) and loans up to ₹20 lakh in other centres for
purchase/construction of a dwelling unit per family provided the overall cost
Priority Sector
of the dwelling unit in the metropolitan centre and at other centres should
Classification
not exceed ₹35 lakh and ₹25 lakh respectively.
Loans for repairs to damaged dwelling units of families up to ₹5 lakh in
metropolitan centres and up to ₹2 lakh in other centres.
Construction/ORP-
Sanctioning
BM1-20L, BM2-35L, BM3-50L, CM-100L, AGM-300L.
Powers
Repairs- BM1-5L, BM2-8L, BM3-10L, CM-15L, AGM-15L.
Area wise Rural - Rs. 50.00 lacs
ceiling on Semi Urban – Rs.150.00 lacs
Maximum Urban - Rs.300.00 lacs
amount of loan Metro - Rs.500.00 lacs
(Cir no
150/53/15 dt.
29.7.15)
Obtaining ECs Branches should obtain continuation ECs and Tax Receipts every year for
&Tax receipts SMA2 accounts only. (Cir 42/53/5 dated 12.05.15)
पररपत्र Circulars 437/28/28/31.12.2003, 666/32/28/03/06.01.2005, 467/26/64/21.03.2007,

Page 58 of 78
64/26/16/30.05.2007, 33/53/02/06.05.2011, 150/26/34/22.08.2009,
364/53/17/16.01.2012. 358/26/59 Dt.12.01.2012, 383/26/62/08.02.2012,
422/53/21/08.03.12, 56/53/5/09.05.2012, 239/53/19/10.09.12,
261/53/23/27.09.2012, 239/53/13/05.09.2013, 468/53/34/18.02.2014.
219/53/15/25.09.2014, 322/53/20/11.12.14. 440/53/29/19.03.2015.
443/53/30/19.03.2015. 34/53/2/11.05.2015. 42/53/5/12.05.2015,
150/53/15/29.07.2015. 232/53/24/24.09.2015, 261/48/1/23.10.2015,
450/53/37/30.03.2016, 04/53/01/01.04.2016, 123/53/12/30.06.2016,
No.192/53/13/08.08.2016
LIST OF DOCUMENTS TO BE OBTAINED:

1. Application for Housing Loan in the prescribed format
2. Housing Loan Agreement (AB 4)
3. Memorandum of Deposit of Title Deeds (AB 10/11)
4. Offer of Security (AB 9)
CHECK LIST:
assessments (for the last 3 years), etc., are obtained to comply with KYC guidelines

documents, including Property statements of Borrower / Co-obligant / Guarantor.
account is obtained
4 Pre-sanction inspection of the site / house / flat is conducted and certificate thereon is
on record
5 Guidelines regarding Maximum Eligible Loan Amount Based on Income is followed

(Proportion of EMI to Net Income – 50% of Net salary as per latest salary statement in
case of salaried class and 65% of monthly average income of preceding three years as
reflected by IT returns for non-salaried class) – HO Cir No.261/53/23 dt 27.09.2012.
7 Whether Credit Investigation Report (CIR) submitted by Credit Investigation Officer is

on record
9 Maximum repayment Period (30 Years) is complied with.
10 Maximum Age limit (as on date of loan not more than 65 years and maximum age
limit at the time of final due date of loan is 75 Years) is followed
11 Whether LTV > 75% to 80% for limits over Rs. 20 lacs and 90% for limits up to Rs.
20 lacs, is followed
12 Approved Plan from Appropriate authority is available
13 Gestation Period (30 Months from 1st disbursement) is within the maximum
permissible limit
14 Contact Point Verification Reports are obtained (wherever necessary)

Page 59 of 78
15 Officer has signed the appraisal and Manager has sanctioned the loan with
16 Whether the loan is processed through LAPS?
18 All standard terms & conditions and case specific conditions have been stipulated in
the letter communicated to the borrower separately by the branch
19 Whether terms and conditions have been duly acknowledged by the Borrower and
Guarantors and/or Co-obligants
20 Whether necessary documents have been obtained and are complete
21 Whether documents are properly stamped
22 Legal Audit is conducted as per norms (wherever necessary)
23 Legal Audit observations are complied and the compliance is submitted to ZO/HO
26 Whether supplementary legal opinion is obtained, if the loan sanction is based on

agreement of sale?
27 Proper mortgage is created in line with Bank Advocate's opinion (with Original Title
29 RF 255 is registered with SROs (wherever applicable)
30 EC is obtained after registration of RF 255
31 Mortgage is registered with CERSAI
32 Whether Lien is noted with Society Records and Lien Confirmation letter as also Share
Certificates from Housing Societies (wherever applicable) is obtained?
33 Post Dated Cheques / ECS authorizations are obtained?
34 Prior permission is obtained from HO/ZO (wherever applicable) for release of

facilities?
35 Whether all sanction terms and conditions have been complied with properly and
compliance certificate is sent to ZO
36 Whether permission from ZO is obtained wherever GPA is accepted?

Page 60 of 78
37 Whether administrative clearance is obtained from ZO in case more than 10 proposals
or 30% of the flats , whichever is lower, are financed in a single apartment complex?
(Ref HO Circular no: 263/53/20 dated 30.09.2016)
38 Release of loan is made in installments based on the progress of work / visits

to the house/flat ?
39 Whether borrower‟s margin is ensured while disbursing the loan?
40 Whether House/Flat completion certificate is on record? Whether EVR is on record?
41 Interest is charged as per terms of sanction? Whether Processing charges are

collected?
42 Interest debited during gestation period is recovered (wherever applicable) or interest

during gestation period is capitalized and EMI is fixed
43 Whether undertaking letters for Pre-payment / Pre-closure charges (wherever

applicable), payment of residual balance and self-declaration from the borrower that he
is not availing credit facility under similar scheme from other branches of the Bank or
other Banks, are obtained?
44 Guidelines for Supplementary Finance for Repairs / Modifications / Extensions etc. are
followed?
45 Tripartite agreements obtained, in respect of Housing loans against allotment

letters by Govt Owned Housing Boards?
46 HLs sanctioned to EWS / LIG categories in Urban Areas are covered under CRGFS-
2012 and premia paid within 30 days from first disbursement (HO Cir 17/53/2 dt
10.04.2013)
47 Whether Insurance of the House/ Flat is in force and as per EVR?
48 In case of “takeover” accounts:

Whether HO norms are complied with? (Administrative Clearance, Satisfactory P & C
report from existing bankers, Account copies of Borrowal account, Minimum Applicable
Credit Rating, Existence of Unit, Restriction on Limit enhancement etc (Refer Cir No.
354/26/45 dt. 28.11.2012) is obtained before sanction/ disbursement
49 Authorization letter from the borrower, to receive registered documents from the
Registration Office, is obtained in the name of the representative of the bank.
50. Whether the branch official personally attended the SRO office and sale consideration
was handed over direct to the seller against acknowledgement
51. Acknowledgement slip issued by SRO was collected by the branch official and the
Original Registered Documents was collected direct from the SRO office, without the
intervention of the borrower/third party.

Page 61 of 78
Over view of
Pradhan Mantri Awas Yojana (PMAY)
Credit Linked Subsidy Scheme (CLSS)
Ministry of Housing and Urban Poverty Alleviation (MoHUPA) has introduced in June 2015, an
interest subsidy scheme called Credit Linked Subsidy Scheme (CLSS) under Pradhan Mantri
Awas Yojana (URBAN)-Housing for All, for purchase/construction/extension/improvement of
house to cater Economical Weaker Section(EWS)/Lower Income Group(LIG)/Middle Income
Group (MIG), given the projected growth of urbanization & the consequent housing demands
in India.
Eligibility
 The beneficiary family should not own a pucca house in his/her or in the name of any
member of his/her family in any part of India.
 In case of married couple, either of the spouse or both together in joint ownership will be
eligible for a single subsidy.
 The beneficiary family should not have availed of central assistance under any housing
scheme from Government of India or any benefit under any scheme in PMAY.
Beneficiary
The beneficiary family will comprise husband, wife and unmarried children. (An adult earning
member irrespective of marital status can be treated as a separate household in MIG
category)
Scheme Details
CLSS Scheme Type

EWS and LIG MIG 1 ** MIG 2 **
Eligibility Household Rs. 6,00,001 to Rs. 12,00,001 to

Income ( Rs.) Upto Rs. 6,00,000 Rs. 12,00,000 Rs. 18,00,000
Carpet Area-Max
(sqm) 60 sqm 120 sqm 150 sqm
Interest Subsidy (%) 6.50% 4.00% 3.00%
Subsidy calculated on
a max loan of Rs. 6,00,000 Rs. 9,00,000 Rs. 12,00,000
Purchase/Self
Construction/ Purchase/Self Purchase/Self
Loan Purpose Extension Construction Construction
Validity of scheme 31/03/2022 31/03/2019 31/03/2019
Max Subsidy (Rs.) 2.67 Lacs 2.35 Lacs 2.30 Lacs

Page 62 of 78
Woman Ownership Yes * Not Mandatory Not Mandatory
* woman ownership is not mandatory for construction / extension
*As per amendment dated 27.06.2017, an adult earning member (irrespective of marital
status) can be treated as a separate household. Provided also that in case of a married
couple, either of spouses or both together in joint ownership will be eligible for a single
house, subject to income eligibility of the household under the scheme.
**for MIG - 1 & 2 loan should be approved on/or after 1-1-2017
Coverage:
All statutory towns as per Census 2011 and towns‟ notified subsequently, including planning
area as notified with respect to statutory town.
Other features:
 Aadhar number(s) of the beneficiary family are mandatory for MIG category.
 The interest subsidy will be available for maximum loan tenure of 20 yrs or the loan tenure
whichever is lower.
 The additional loan beyond the specified limits, if any to be at non-subsidized rate.
 There is no cap on the loan amount or the cost of the property.
 URL of the Government web site www.mhupa.gov.in

Page 63 of 78
प्रधानभंत्री आवास मोजना
PRADHAN MANTRI AWAS YOJANA
(CREDIT LINKED SUBSIDY SCHEME)
Coverage The scheme is applicable only in 4041 statutory towns as per Census 2011
and Statutory Towns notified subsequently would be eligible for coverage
under the Mission. In this Mission, States/UTs will have the flexibility to
include the Planning Areas (to the exclusion of rural areas) as notified with
respect to Statutory towns and such Planning areas (to the exclusion of
rural areas)as notified by Development Authorities. The proposed
House/Flat is to be located in the 4041 statutory towns only and will be in
operation from 17-06-2015 to 31-03-2022.
Age of the  21-60 years as on the date of the loan.
applicants /  Maximum age at the time of final due date of loan is to be not more
Co-applicants than 70 years.
Purpose &  Purchase of House / Flat, Construction of House on the site owned,
Carpet Area purchase of flats under construction. EWS & LIG beneficiaries residing
in Urban Areas
 Repairing work and addition of rooms, kitchen, toilet etc. To existing
dwelling kucha unit requiring extensive renovation to make Pucca
House.
 Purchase of new House/Flat confirming to area norms subject to
ensuring proper due diligence so that the transaction is not for
availment of funds/subsidy and for speculative purpose.
 The carpet area of house being constructed should be upto 30 sq.
Meters for EWS beneficiaries and 60 sq. Meters for LIG beneficiaries
respectively.
 A house is defined as an all-weather single unit or a unit in a multi
stories super structure having carpet area of upto 30 sqm for EWS and
up to 60 sqm for LIG category with adequate basic services.
 The eligible beneficiary, at his/her discretion, can build a house of
larger area but interest subsidy will be limited to loan amount of first
Rs.6.00 lakhs only.
 For extension/repairs to the existing Houses, the area limit will be 30
sqm and 60 sqm built up area for EWS and LIG category respectively.
Definition of  The net usable floor area of an apartment excluding the area covered
Carpet Area by the external walls, areas under services shafts, exclusive balcony or
Cir no: verandah area and exclusive open terrace area, but includes the area
174/53/11 covered by the internal partition walls of the apartment.
Dated Explanation: For the purpose of this definition, the expression
19.08.2017 “exclusive balcony or verandah area” means the area of the
balcony or verandah, as the case may be, which is appurtenant to the
net usable floor area of an apartment, meant for the exclusive use of
the allottee and “exclusive open terrace area” means the area of
open terrace which is appurtenant to the net usable floor area of an
apartment, meant for the exclusive use of the allottee.
Income  For EWS beneficiaries the annual house hold income shall be up to
Criteria Rs.3.00 lakhs.
 For LIG beneficiaries the annual house hold income shall be above
Rs.3.00 lakhs and up to Rs.6.00 lakhs.
 The income of the applicant along with Wife/Husband/unmarried
children also can be considered for arriving at the eligible limit and
they should also join as co-borrowers.
Quantum of  Four times gross annual income with net take home pay of 40% after
loan considering the EMI of the proposed loan keeping in view the margin
norms.

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 Only the minimum amount arrived as above to be considered as limit.
Branches to ensure that the actual project cost estimated/ submitted
by the beneficiaries are in tune with market conditions for the
respective carpet areas and need based limits are to be arrived.
 Maximum Loan amount: Rs.24.00 lakhs.
Margin New House /Flat Old- Up to 10 years. Old- Above 10 years
10% 20% 25%
Proof of  For Salaried/Employed beneficiaries – Salary Certificate, Salary
Income Slips, Form 16, ITRs whichever is applicable to be obtained, verified
and satisfied. Last six months salary account Bank statement also to
be obtained.
 For Self Employed; Professional and other beneficiaries– Self
declared income certificate/ Affidavit can be obtained for annual
income upto Rs.2.50 lakhs (Up to taxable income limit). For annual
income above Rs.2.50 lakhs, suitable income proofs as per existing
guidelines to be obtained and verified to satisfy the same.
 Branches to conduct sufficient due diligence and to satisfy about the
Credit worthiness and repayment capacity of the beneficiaries while
processing the applications by obtaining and satisfying the necessary
link documents to ascertain the correctness of the income.
Other  A beneficiary family will comprise husband, wife, unmarried sons
important and/or unmarried daughters. The beneficiary family should not own a
conditions: pucca house (an all-weather dwelling unit) either in his/her name or in
the name of any member of his/her family in any part of India.
An adult earning member (irrespective of marital status) can be
treated as a separate household
- Provided that he/she does not own a pucca (an all-weather
dwelling unit) house in his/her name in any part of India
- Provided also that in the case of married couple, either of the
spouses or both together in joint ownership will be eligible for a
single house, subject to income eligibility of the house hold under
the Scheme.
 States/UTs have the flexibility to redefine the annual income criterion
as per local conditions in consultation with the centre.
 House/Flats to be financed to have basic civic facilities like Water,
Electricity, Toilet, Sanitation, Sewerage, Roads etc.
 The House constructed/acquired should be in the name of female head
of the household or in the joint names of male head of the household
and his wife. Only in cases, where there is no adult female member in
the family, the house can be in the name of male member of the
household.
 Beneficiaries can apply for the loan either directly or through Urban
Local Body or NGO or through the local Agency identified by the
State/ULB.
 Construction of House/Flat should confirm to National Building code
and all necessary approvals/permissions should be available.
 Preference under the scheme shall be given to Manual scavengers,
Women, Persons belonging to SC/ST/Other Backward classes,
Minorities, Persons with disabilities and Transgender subject to
beneficiaries being from EWS/LIG segments.
Disbursement  Disbursement shall be made as per our Housing Loan Scheme guidelines
i.e., in stages as per progress in construction. It is advised to disburse
in maximum of 3-4 installments in view of subsidy claims. However, the
construction to be completed within 18 months to become eligible for
subsidy.
Rate of interest  MCLR + 0.05%
Maximum  The loan is to be repaid in EMIs within 25 years including the maximum

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repayment moratorium period of 18 months. However the Credit linked subsidy will
period. be available only for loan amounts up to Rs.6 lakhs at the rate of 6.50%
for tenure of 15 years or during tenure of loan whichever is lower.
Moratorium  The maximum moratorium period is 18 months. In case of construction
period of House/Flat repayment to start one month after completion of
House/Flat or 18 months of first disbursement whichever is earlier. In
case of Ready Built House/Flat, repayment to start one month after the
disbursement.
ECS/Standing  Repayment may be by registering Standing instructions to the
Instructions/ Operative Account. Salary recovery mandate, Registration of ECS
PDCs mandate from salary/operative account. In all cases few PDCs have to
be obtained as per rules in force.
Security  Equitable Mortgage of the House/Flat to be purchased or constructed.
All the EM transactions are to be registered with CERSAI.
Guarantee  Suitable third party guarantee may be obtained at the discretion of the
sanctioning authority for loans above Rs.6.00 lakhs.
Processing  In lieu of the processing fee for housing loan for the borrower under the
charges scheme, PLIs (Primary Lending Institutions) will be given a lump sum
amount of Rs.3000/- per sanctioned application. PLIs will not take any
processing charge from the beneficiary for housing loans up to Rs.6.00
lakhs under the scheme. For additional loan amounts beyond Rs.6.00
lakhs, PLIs can charge the normal processing fee.
Credit Linked  The Beneficiaries will be eligible for an interest subsidy at the rate of
Subsidy under 6.5% for a period of 20 years or till tenure of the loan whichever is
the scheme lower. The Net Present Value (NPV) of the interest subsidy will be
calculated at a discount rate of 9% and credited to loan accounts upon
disbursement, after claiming the same from NHB. Maximum subsidy
amount under the scheme is Rs.2,20,487/-
 The credit linked interest subsidy will be available for loan amount only
up to Rs.6.00 lakhs and for loan amount beyond Rs.6.00 lakhs, if any,
will be at non-subsidized rate i.e., at normal Bank Rate.
Example: The borrower avails a loan of Rs.6.00 lacs for 15 years and
subsidy there on works out to Rs2.20 lacs. The subsidy amount
(Rs.2.20 lacs) would be reduced upfront from the loan (i.e. the loan
would be reduced to Rs.3.80 lacs) and the borrower would pay EMI on
the reduced amount of Rs.3.80 lacs. By crediting the subsidy the EMI
reduces from 6265/- to 3968/- for 15 years tenure.
SUBSIDY CALCULATOR OF PMAY (CREDIT LINKED SUBSIDY

SCHEME):
Loan tenure – 180 Months
Amount disbursed before this instalment – Rs.0
Current disbursement instalment – Rs.6.00 lacs
Applied interest rate of subsidy calculation (in % p.a.) – 6.50%
Subsidy amount – Rs.2,20,187/-
(Maximum interest subsidy irrespective of the loan amount)
Assumptions:
 Monthly interest for calculation of subsidy is arrived at by applying
@ 6.5% on the disbursed amount, for a maximum tenure of 15
years.
 Net present value is discounted @ 9% and calculated on monthly res
basis
 Paise in Total is rounded off to the nearest rupee
 For calculation purpose month is treated as 30 days
 Primary Lending Institutions (PLIs) should take NOCs quarterly from

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State/UT Government or designated agency of State/UT
Governments for the list of EWS beneficiaries being given benefits
under credit linked subsidy.
 PLIs, in the Home Loan applications, shall disclose transparently the
Scheme eligibility and ascertain willingness and eligibility of
applicants under CLSS for EWS/LIG
 Bank will claim the subsidy from respective Central Nodal Agency (CNA)
i.e. National Housing Bank (NHB) after disbursement of loan and it will
be credited up front to the loan accounts resulting in reduced Housing
Loan amount & EMIs. Branches have to revise the EMIs with in
permitted repayment period without opting for restructuring upon
receipt and crediting the interest subsidy to loan account.
 In case a borrower, who has taken a Housing Loan and availed of
interest subsidy under the scheme from one Bank and later on switches
over to another lending institution, such beneficiary will not be eligible
for interest subsidy again.
 In the event of account becoming NPA, Bank will take appropriate
measures including foreclosure of property for recovery of dues
including the interest subsidy. In such cases, the amount of recovery
will be charged to the subsidy amount and returned to NHB on a
proportionate basis. (in proportion to the loan outstanding and subsidy
disbursed).
 The interest subsidy credit is to be recovered and refunded to Central
Nodal Agency if the account becomes NPA or Project is stalled or
construction is not completed in 18 months.
 The interest subsidy shall be claimed from NHB at quarterly intervals
and the same shall be done by Retail Credit Department, Head Office.
 Branches / Offices to open the accounts in a separate product code as
advised with all details for extraction of the data and to mark the
completion of the houses in the system immediately on completion to
enable to submit completion certificate centrally to NHB as per MOU.
Role of the  States/Union Territories/Urban Local Bodies shall link beneficiary
States / identification to Aadhar, Voter ID, Certificate of house ownership from
UTs/ULBs revenue authority of native district or any other unique identification of
Beneficiaries to avoid duplication.
 Till 31.12.2017, instead of taking NOC from States/UTs, CNAs on behalf
of PLIs would send list of EWS beneficiaries under CLASS on fortnightly
basis to concerned States/UTs. Concerned States/UTs will consider this
list, while deciding beneficiaries under other three verticals of the
Mission, so that no beneficiary is granted more than one benefit under
the Mission.
 State Level Nodal Agency (SLNA) to facilitate the identified beneficiaries
in getting proper approvals and documents etc. to avail Credit Linked
Subsidy.

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Other  Branches/Offices to take NOC quarterly from State/UT/Governments for
Guidelines the beneficiaries who have been given interest subsidy to avoid the
beneficiaries taking advantage of more than one component in the
scheme (after 01-01-2016).
 Bank will provide Utilization/End use certificate to the Central Nodal
Agency i.e. NHB on a quarterly basis and also the certificate in relation
to the physical progress of the construction leading up to the completion
of the housing unit. Bank will submit a consolidated utilization
certificate on completion of the housing unit within one year period of
completion of construction or a maximum of 18 months from the date of
disbursement of the 1st installment of the loan amount. In case of
default in not providing Utilization/End use certificate Bank will refund
the amount of subsidy to CNA. Further, any unutilized amount of
subsidy has to be immediately returned by Bank to CNA. Hence, all the
loans are to be monitored closely for completion of the projects as per
sanction terms and date of completion is marked in the system.
 Site inspection reports by Bank Officials and photographs of the Houses
to be obtained at different stages of construction and kept with the loan
documents for verification of NHB/MoHUPA officials whenever visited.
 The scheme has become operational from 17-06-2015. As such all the
eligible loans sanctioned and disbursed on or after that date as per the
PMAY scheme guidelines would be eligible for the benefit under the
scheme.
 Branches/Offices to ensure adherence to due diligence and KYC
guidelines as per our existing guidelines in verifying income/occupation
etc. to avoid financing ineligible beneficiaries and to avoid possible
impersonation without fail.
 Loan applications are to be disposed off with in time limits in force by
adhering extant guidelines in rejection of the same.
 All out of pocket expenses are to be recovered from the applicants.
 Sanction of loans is as per delegation of powers for existing Housing
Loan Scheme and subsequent modifications if any.
 Guidelines relating to drawing of Credit information report from CIBIL as
per guidelines in force or subsequent circulars if any.
Opening of  Branches should open the account in 54120 GL Code with scheme code
account HPMAY. In MIS code No:1, branches to select 087 for PMAY –
EWS/LIG
Classification  All loans sanctioned under the scheme should be classified as priority
sector loans.
Procedure for  Branches should submit the claim in 74 column excel sheet supplied by
claiming Head Office to respective zonal offices. In turn zonal offices should
subsidy submit the consolidated claim to Retail Credit Department, Head office
within the time schedule stipulated by Head Office.
 Branches should collect the relevant information for claiming the subsidy
in 74 columns excel sheet before disbursement of loan from the
borrowers. Submission of claim without filling all columns/ information
will lead to rejection of claim.
Nodal Branch  1179-Dr. Pattabhi Bhawan Branch.

for subsidy
Applications &  Common simplified application as per the Annexure-A is to be obtained
other from the borrowers under the scheme.
documents  List of documents/certificates to be furnished by the applicants are as
per Annexure-B and the same are to be obtained from the applicants.
 Draft Affidavit and Self Declaration of income to be obtained as per

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formats in Annexure-C (a) and C (b).
 All borrowers to be provided with Sanction Memorandum as per the
MITC furnished in the Annexure-D with relevant modifications/
additions/striking and acknowledgements to be obtained and kept with
loan documents.
 Addendum to Housing Loan Agreement as per Annexure-E as part of
Housing Loan Agreement is to be obtained as part of documentation.
 Zones in co-ordination with respective State Govts./ SLBCs to get the
information about the Nodal agencies to give NOCs, identification of
eligible beneficiaries, reimbursement of Processing Fees etc. and to
circulate the same to Branches/RLEs.
Circular No.343/53/29/30.12.2015
No.346/53/26/13.12.2016
No.490/53/45/30.03.2017
HOUSING LOANS TO NRIs

Notification No.FEMA 4 /2000-RB dated 3rd May 2000:
We can provide housing loan to a non-resident Indian or a person of Indian origin resident
outside India, for acquisition of a residential accommodation in India, subject to the following
conditions, namely:
a) the quantum of loans, margin money and the period of repayment shall be at par with
those applicable to housing finance provided to a person resident in India;
b) the loan amount shall not be credited to Non-resident External (NRE) / Foreign Currency
Non-resident (FCNR)/Non-resident Non-repatriable (NRNR) account of the borrower;
c) the loan shall be fully secured by equitable mortgage of the property proposed to be
acquired, and if necessary, also by lien on the borrower's other assets in India;
d) the instalment of loan, interest and other charges, if any, shall be paid by the borrower by
remittances from outside India through normal banking channels or out of funds in his
Non-resident External (NRE)/Foreign Currency Non-resident(FCNR)/Non-resident Non-
repatriable (NRNR)/ Non-resident Ordinary (NRO)/ Non-resident Special Rupee (NRSR)
account in India, or out of rental income derived from renting out the property acquired
by utilisation of the loan;
e) the rate of interest on the loan shall conform to the directives issued by the Reserve Bank
or, as the case may be, by the National Housing Bank.
Additional documents to be submitted by NRI’s:

a. Status of the applicant – NRI / Person of Indian Origin
b. Passport – Date of issue, due date, endorsements
c. Status and due date of VISA
d. Work permit in the Country of stay
e. Copy of agreement with the present employer
f. Proof of Income through Salary Certificate, Income Tax returns
g. Naturalization process (Taking Citizenship of country abroad)

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h. Transaction being conducted by him personally or through a resident Indian Power of Attorney
holder
i. Undertaking-cum- declaration that the loan shall not be utilized for acquisition of Agricultural /
plantation /farmhouse in India and that he is eligible to acquire immovable property in India in terms
of FEMA 99 and rules and regulations there under.
Co-obligant & Co-applicant: For all NRI’s Housing Loans co-obligant / co-applicant is not mandatory.
However it would be always be preferable to join spouse of the applicant as co-applicant, whether
she/he is havingnindependent income or not.
Execution of Documents:
Issuance of PA: 1) Abroad: It should be attested by Indian Consulate/ High Commissioner and
registered in India within THREE months. 2) India: it should be registered.
It should be a specific PA to execute the documents including the power to mortgage the property
and to execute Debt Acknowledgement
Master Direction 12/ 2015-16 - Acquisition and Transfer of Immovable Property
under Foreign Exchange Management Act, 1999
Part I - Acquisition and Transfer of Immovable Property outside India by a

person resident in India
1. Introduction
1.1 The Foreign Exchange Management Act, 1999 (FEMA) empowers the Reserve Bank to frame
regulations to prohibit, restrict or regulate the acquisition or transfer of immovable property outside
India by persons residents in India. The regulations governing acquisition and transfer of immovable
property outside India are notified under Notification No. FEMA 7(R)/2015-RB dated January 21,
2016, as amended from time to time.
1.2 A person resident in India can, acquire property outside India if so permitted under the FEMA or
the regulations framed thereunder or with the general or special permission of the Reserve Bank.
These restrictions, however, do not apply to the property held by a person resident in India who is a
foreign national or if the property was acquired by a person resident in India on or before July 8,
1947 and continued to be held by him with the permission of the Reserve Bank. The restrictions also
do not apply to acquisition of property outside India by a person resident in India on a lease not
exceeding five years.
2. Definitions
Some key terms used in the regulations are given below:
2.1 'Relative' in relation to an individual means husband, wife, brother or sister or any lineal
ascendant or descendant of that individual.
2.2 ‘Liberalised Remittance Scheme’ is a facility available to resident individuals for making
remittances outside India as per the conditions mentioned in the Master Direction on Liberalised
Remittance Scheme.
3. Modes of acquiring property outside India by a resident

3.1 According to section 6(4) of the FEMA, a person resident in India can hold, own, transfer or
invest in any immovable property situated outside India if such property was acquired, held or
owned by him/ her when he/ she was resident outside India or inherited from a person resident
outside India.
3.2 A resident can acquire immovable property outside India by way of gift or inheritance from:

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 a person referred to at 3.1 above; or
 a person resident in India who had acquired such property on or before July 8, 1947 and
continued to be held by him with the permission of the Reserve Bank.
 a person resident in India who has acquired such property in accordance with the foreign
exchange provisions in force at the time of such acquisition.
3.3 A resident can purchase immovable property outside India out of foreign exchange held in his/
her Resident Foreign Currency (RFC) account.
3.4 A resident can acquire immovable property outside India jointly with a relative who is a person
resident outside India, provided there is no outflow of funds from India.
4. Acquisition under the Liberalised Remittance Scheme (LRS)

A resident individual can send remittances under the Liberalised Remittance Scheme for purchasing
immovable property outside India.
5. Companies having overseas offices

A company incorporated in India having overseas offices, may acquire immovable property outside
India for its business and for residential purposes of its staff, provided total remittances 7do not
exceed the following limits prescribed for initial and recurring expenses, respectively:
a) 15 per cent of the average annual sales/ income or turnover of the Indian entity during the
last two financial years or up to 25 per cent of the net worth, whichever is higher;
b) 10 per cent of the average annual sales/ income or turnover during the last two financial
years.
Part II - Acquisition and Transfer of Immovable Property in India
1. Introduction
1.1 The Foreign Exchange Management Act, 1999 (FEMA) empowers the Reserve Bank to frame
regulations to prohibit, restrict or regulate the acquisition or transfer of immovable property in India
by persons resident outside India. The regulations governing acquisition and transfer of immovable
property in India are notified under Notification No. FEMA 21/2000-RB dated May 3, 2000, as
amended from time to time. These restrictions do not apply to acquisition or transfer of immovable
property in India by a person resident outside India on a lease not exceeding five years.
1.2 As per section 6(5) of FEMA, a person resident outside India can hold, own, transfer or invest in
any immovable property situated in India if such property was acquired, held or owned by him/ her
when he/ she was resident in India or inherited from a person resident in India.
2. Definitions
Some key terms used in the regulations are given below:
2.1 A ‘Non-Resident Indian’ (NRI) is a citizen of India resident outside India.
2.2 A ‘Person of Indian Origin' means an individual (not being a citizen of Pakistan or Bangladesh or
Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan) who at any time, held an Indian
Passport or who or either of whose father or mother or whose grandfather or grandmother was a
citizen of India by virtue of the Constitution of India or the Citizenship Act, 1955 (57 of 1955).
2.3 ‘Repatriation outside India’ means the buying or drawing of foreign exchange from an authorised
dealer in India and remitting it outside India through banking channels or crediting it to an account
denominated in foreign currency or to an account in Indian currency maintained with an authorised
dealer from which it can be converted in foreign currency.
2.4 ‘Transfer’ includes sale, purchase, mortgage, exchange, pledge, gift, loan or any other form of
transfer of right, title, possession or lien.

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3. Acquisition/ transfer by a Non- Resident Indian (NRI)
3.1 Purchase of immovable property
An NRI can acquire by way of purchase any immovable property (other than agricultural land/
plantation property/ farm house) in India.
3.2 Transfer of immovable property
a) An NRI may transfer any immovable property in India to a person resident in India;
b) An NRI may transfer any immovable property (other than agricultural land or plantation
property or farm house) to an NRI or a PIO resident outside India.
3.3 Payment for Acquisition of Immovable Property
a) NRIs can make payment for acquisition of immovable property (other than agricultural land/
plantation property/ farm house) out of funds received in India through normal banking
channels by way of inward remittance from any place outside India or by debit to his NRE/
FCNR (B)/ NRO account;
b) Such payments cannot be made either by traveller’s cheque or by foreign currency notes or
by other mode except those specifically mentioned above.
4. Acquisition/ transfer by a Person of Indian Origin (PIO)

4.1 Purchase of immovable property
A PIO resident outside India can acquire by way of purchase any immovable property (other than
agricultural land/ plantation property / farm house) in India.
4.2 Gift/ Inheritance of immovable property
A PIO resident outside India may acquire
a) any immovable property (other than agricultural land/ plantation property/ farm house) in
India by way of gift from a person resident in India or an NRI or a PIO resident outside India;
b) any immovable property in India by way of inheritance from a person resident outside India
who had acquired such property in accordance with the provisions of the foreign exchange
law in force or FEMA regulations, at the time of acquisition of the property or from a person
resident in India.
4.3 Transfer of immovable property
A PIO resident outside India can transfer
a) by way of sale, any immovable property in India (other than agricultural land/ farm house/
plantation property), to a person resident in India;
b) by way of gift or sale, agricultural land/ farm house/ plantation property in India, to a person
resident in India who is a citizen of India;
c) by way of gift, residential or commercial property in India, to a person resident in India or to an
NRI or to a PIO resident outside India.
4.4 Payment for Acquisition of Immovable Property in India
a) A PIO resident outside India can make payment for acquisition of immovable property in
India (other than agricultural land/ farm house/ plantation property) by way of purchase out of
funds received by inward remittance through normal banking channels or by debit to his
NRE/ FCNR (B) / NRO account;
b) Such payments cannot be made either by traveller’s cheque or by foreign currency notes or
by other mode other than those specifically mentioned above.
5. Acquisition of immovable Property by Foreign Embassies/ Diplomats/ Consulate Generals

Foreign Embassy/ Diplomat/ Consulate General, may purchase/ sell immovable property (other than
agricultural land/ plantation property/ farm house) in India provided –

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a) Clearance from the Government of India, Ministry of External Affairs is obtained for such
purchase/sale, and
b) The consideration for acquisition of immovable property in India is paid out of funds remitted
from abroad through the normal banking channels.
6. Acquisition of immovable property by person resident outside India for carrying on a

permitted activity
6.1 A branch or office in India established by a person resident outside India, other than a liaison
office, may acquire immovable property in India which is necessary for or incidental to the activity
carried on in India by such branch or office.
6.2 Such a person is required to file with the Reserve Bank a declaration in the form IPI (as given in
the Master Direction on Reporting), not later than ninety days from the date of such acquisition.
6.3 The immovable property so acquired can be mortgaged to an Authorised Dealer as a security for
any borrowing.
6.4 However, acquisition of immovable property in India by a branch, office or other place of
business, of entities of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Hong
Kong or Macau or Nepal or Bhutan origin/ nationality/ ownership requires the prior approval of the
Reserve Bank.
7. Repatriation of sale proceeds of immovable property

7.1 A person acquiring property in accordance with section 6(5) of FEMA (reference para 1.2 of Part
II) or his successor cannot repatriate outside India the sale proceeds of such immovable property
without the prior permission of the Reserve Bank. However, if such a person is an NRI or a PIO
resident outside India, he can make a remittance under the facilities available under the Foreign
Exchange Management (Remittance of Assets) Regulations, 2000, as amended from time to time.
7.2 In the event of sale of immovable property other than agricultural land/ farm house/ plantation
property in India by a NRI/ PIO resident outside India, the Authorised Dealer may allow repatriation
of the sale proceeds outside India, provided the following conditions are satisfied, namely:
a) the immovable property was acquired by the seller in accordance with the provisions of the
foreign exchange law in force at the time of acquisition by him or the provisions of Foreign
Exchange Management (Acquisition and Transfer of Immovable Property in India) Regulations
2000;
b) the amount to be repatriated does not exceed the amount paid for acquisition of the immovable
property received through normal banking channels or out of funds held in FCNR(B) account or
NRE account.
In case an immovable property in India has been purchased by an NRI/ PIO out of housing loans
availed in terms of Foreign Exchange Management (Borrowing and lending in rupees)
Regulations, 2000, as amended from time to time, and the repayments for such loans are made
out of remittances received from abroad through banking channels or by debit to the NRE/
FCNR(B) account of the NRI, such repayments may be treated as equivalent to foreign
exchange received.
c) in the case of residential property, the repatriation of sale proceeds is restricted to not more than
two such properties
8. Prohibition on acquisition or transfer of immovable property in India by citizens of certain

countries
Citizens of Pakistan, Bangladesh, Sri Lanka, Afghanistan, China, Iran, Nepal, Bhutan, Macau or
Hong Kong cannot, without prior permission of the Reserve Bank, acquire or transfer immovable
property in India, other than on lease, not exceeding five years.

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9. Miscellaneous
9.1 Authorized Dealer Category-I banks may convey no objection for creation of charge on
immovable assets of a person resident in India either in favour of the external commercial borrowing
(ECB) lender or the security trustee subject to the following conditions:
a) ‘No objection’ shall be granted only to a resident ECB borrower;
b) The period of such charge on immovable assets has to be co-terminus with the maturity of
the underlying ECB;
c) Such ‘no objection’ should not be construed as a permission to acquire immovable asset
(property) in India, by the overseas lender/ security trustee;
d) In the event of enforcement/ invocation of the charge, the immovable asset (property) will
have to be sold only to a person resident in India and the sale proceeds shall be repatriated
to liquidate the outstanding ECB.
9.2 Any transfer of property not covered in these directions will require the prior permission of the
Reserve Bank.
9.3 As per Government of India Press Release dated February 1, 2009, (given in the annex) in order
to be considered as a person resident in India, a person has not only to satisfy the condition of the
period of stay (being more than 182 days during the course of preceding financial year) but also his
purpose of stay as well as the type of Indian visa granted to him should clearly indicate the intention
to stay in India for an uncertain period. In this regard, to be eligible, the intention to stay has to be
unambiguously established with supporting documentation including visa.
10. Payment of taxes – Any transaction involving acquisition of immovable property under these
regulations shall be subject to applicable tax laws in India.

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INTEREST RATES CHART FOR RETAIL LOAN
(WEF 11.09.2017) HO CIR NO: 213/53/16 Dated 12.09.2017
UP TO ABOVE ABOVE
36 M 36M 60 M MAX
SCHEME AND REPAYMENT
UP TO PERIOD
60 M
1 Housing Loans Up to 75.00 lacs – 8.45 360 M MCLR +0.05
(Rated accounts – Score of 60 & above) (For Women) For Repairs
Up to 75.00 lacs – 8.50 240 M MCLR +0.10
(For Others)
Above 75.00 lacs – 8.55 MCLR +0.15
(For Women)
Above 75.00 lacs – 8.60 MCLR +0.20
(For Others)
For Repairs – 9.60 MCLR +1.20
2 Vehicle Loans -4 W- New 9.10 9.10 9.10 84 M MCLR +0.70

(Including Vanitha Vahan & Corporate) NO T.P.
3 Vehicle Loans -4 W- Used 11.85 12.10 NA 60 M MCLR +3.45 +

Applicable TP
4 Vehicle Loans - 2 W-New 10.35 10.60 NA 60 M MCLR +1.95 +

(including Vanitha Vahan) Applicable TP
5 Property Term Loans - PTL 10.45 10.70 10.95 180 M MCLR +2.05 +
(Against Residential, Commercial, Applicable TP
Industrial building & Plots)
6 Property Overdraft - POD 10.95 NA NA MCLR +2.55

(Against Residential, Commercial,
Industrial building & Plots)
7 Rent Receivable Loans 10.10 10.35 10.60 120 M MCLR +1.70 +

(Our Bank Landlords) Applicable TP
8 Rent Receivable Loans 9.60 9.85 10.10 120 M MCLR +1.20

(For others) TO TO TO to 2.70 +
11.10 11.35 11.60 Applicable TP
9 NAGL (One year tenor MCLR) One year MCLR + Business strategy 2.00%
8.40% + 2.00% = 10.40%
10 OVERDRAFT AG GOLD
ORNAMENTS 11.20 MCLR +2.80
11 Clean Loans Up to 36Months:

(Govt., employees & Pensioners) One year MCLR + Risk premium 0.50% + Business
strategy 2.50% = 8.40 +0.50 + 2.50 = 11.40%
12 Clean Loans Up to 36Months:

(Others) One year MCLR + Risk premium 0.50% + Business
strategy 3.00% = 8.40 +0.50 + 3.00 = 11.90%
Above 36Months up to 60 Months:
One year MCLR + Risk premium 0.50% + Business
strategy 3.75% + TP 0.25%
= 8.40 +0.50 + 3.75 + 0.25 = 12.90%
13 Consumer Loans 11.90 12.90 NA 60 M Same as

(for purchase of consumer goods like TV, above
Fridge, Washing machine etc.)

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14 Personal Loans against Govt. 13.35 13.60 NA 60 M MCLR +4.95 +
Securities (NSCs, KVPs, LIC Polices) Applicable TP
15 Educational loans Up to Rs.7.50 lacs – 10.40 120 M MCLR +2.00

(Studies India & abroad) Above Rs.7.50 lacs – 10.10 180 M MCLR +1.70
16 Educational loans 8.60 for IITs, BITS, IIM, XLRI, MDI, MCLR +0.20
(for premier Education Institutions) SPJJMR, IIIT, ISB
9.85 for IMT, SOMAIYA INST OF MGT, MCLR +1.45
JMAN LAL BAJAJ, NSIT
17 ABCALS Up to 3 years – 12.60 MCLR + 4.20

Above 3 years (Up to Rs.2.00 lacs) – MCLR + 4.45
12.85
Above 3 years (Above Rs.2.00 lacs) – MCLR + 5.45
13.85
18 Educational Loans 9.60 MCLR + 1.20

(Private Medical/Dental Colleges)
19 Educational Loans Up to Rs.7.50 lakhs – 9.90 MCLR + 1.50

(Staff Children) Above Rs.7.50 Lakhs – 9.60 MCLR + 1.20
20 AB Anand Jeevan 10.35 - MCLR +1.95

(Reverse mortgage)
21 AB Doctor+ Loans 11.85 84 M MCLR +3.45

NO TP
22 AB Nightingales 14.20 NA NA 36 M BR +4.50
23 AB Professional loans 11.85 60 M MCLR +3.45

NO TP
 MCLR FOR ONE YEAR TENOR WEF 11.09.2017 –8.40%

 TERM PREMIA – ABOVE 36M to 60M - 0.25%
 ABOVE 60M - 0.50 %
*Term Premia is not applicable to Housing loans, Education Loans, AB Anand Jeevan,
Car Loans New, AB Doc+ loans, AB Professional loans & ABCALS)
* Term Premia is applicable to Property Term Loans, Rent Receivable Loans, LSS, Car Loans (used
cars), Two wheeler loans & Clean Loans.
INTERST RATE HISTORY WEF 01.04.2016

CIRCULAR NUMBER BASE
AND DATE WEF MCLR TENOR RATE BMPLR
ONE THREE SIX ONE
OVERNIGHT MONTH MONTHS MONTHS YEAR
02/26/1 Dt. 01.04.16 01.04.16 9.35 9.40 9.45 9.50 9.60 9.75 14.00
139/26/11 Dt. 15.07.16 15.07.16 9.30 9.35 9.40 9.45 9.55 9.75 14.00
274/26/25 Dt. 14.10.16 15.10.16 9.25 9.30 9.35 9.40 9.45 9.70 13.95
379/26/30 Dt. 03.01.17 03.01.17 8.45 8.50 8.55 8.60 8.65
209/26/17 Dt. 08.09.17 11.09.17 8.10 8.15 8.20 8.30 8.40
234/26/20 Dt. 29.09.17 01.10.17 9.55 13.95
336/26/38 Dt. 14.12.17 15.12.17 8.00 8.05 8.10 8.25 8.40
411/26/47 Dt. 14.02.18 15.02.18 7.85 7.95 8.10 8.25 8.40
453/26/55 Dt. 14.03.18 15.03.18 7.85 7.90 8.10 8.25 8.40

Page 76 of 78
Retail loans :: Guidelines on Switch over from Base Rate to MCLR
The following are the guidelines for switch over of the existing borrowal accounts of
Retails Credit from Base Rate systems to MCLR lined interest rates system (HO CIR NO
468 REF NO 53/43 DATED 14.03.2017)
Applicability of Service 1.00% of the outstanding balance as on the date of

Charges switchover (plus applicable Service Tax) with a minimum of
Rs.5,000/-
Powers of approval of Respective sanctioning authority can approve the switch over
Switch over from Base subject to collection of the above service charges. In respect
rate to MCLR of Head Office sanctions CLCC is to competent authority for
approval of the switchover to MCLR
Effective date of revised The effective date of revised rate of interest is the date of
rate of interest approval made by the competent authority.
Status of the account The account should be standard asset and without any over
dues as on the date of switchover.
Powers of waiver of CLCC is the competent authority for waiver of 100% of the
service charges service charges. (Cir no 51 Ref No 53/02 dated 26.05.17)
Exemption of service The following category of loans only is exempted from

charges service charges on switchover from Base Rate to MCLR.
 All staff (including retired/VRS staff) availed loans
under General Public Category
 Education Loans sanctioned to staff children
(Cir no 51 Ref No 53/02 dated 26.05.17)
Resetting of interest rate On permitting for switch over to MCLR system the applicable
on switch over to MCLR rate of interest may be stipulated as per the guidelines
system issued, vide the following circulars, and also the guidelines
on interest spreads to be sued from time to time:
1. Circular No 04, Ref No 53/01, dated 01.04.2016 – Spread

Applicable for advances of Retails Credited linked to MCLR
2. Circular No 382, Ref No.53/29, dated 03.01.2017 –
Reduction in rate of interest on Housing Loans
w.e.f. 04.01.17
Guidelines on procedure Branches are advised to refer to Circular no 06, Ref No 11/1,
& Documentation Dated 01.04.2016 issued by Legal Department for the
procedure to be followed & documentation in this aspect.

Page 77 of 78
LIST OF IMPORTANT CIRCULARS ON RETAIL LOANS
CIR NO REF NO DATE SUBJECT

064 28/05 18.05.2004 Frauds in the area of Housing Finance
350 26/42 12.12.2006 RBI directions on steps to be taken to curb

unauthorized construction, misuse of properties
and encroachment of public land
418 26/87 22.03.2010 Inspection of Collateral Securities – Format for

reporting by Inspecting official
259 53/11 04.11.2011 Precautions to be taken to arrest frauds in Retail

credit segment
320 26/53 15.12.2011 Valuation of properties by approved Engineers –

Counter checking the value before disbursal of
loan amount
025 53/03 16.04.2012 Fraud Review Council – Directions to prevent

frauds under Retail Credit
028 53/04 21.04.2012 Housing Loans – Precautions suggested to avoid

frauds
094 53/07 01.06.2012 Fraud Review Council – Directions to prevent

frauds under Retail Credit
167 26/27 24.07.2012 Annual Housing loan unit inspections –

Reiteration of guidelines
097 26/14 06.06.2012 Inspection of collateral Securities - Reiteration

of Guidelines
450 55/54 07.02.2014 ECS Outward debits – Collection of loan

installments for our customers from operative
accounts maintained with other Banks.
318 53/23 17.11.2016 Disbursement of Housing loans and Vehicle loans

– Precautions to be taken
181 26/19 03.08.2016 Accepting properties as securities – Precautions

to be taken
330 26/37 11.12.2017 Review/Revision of Credit Risk Mitigation and

Collateral Management Policy of the Bank
Manual of Vol - 5 Chapter - 4 Precautions to be taken in respect of Housing

instructions Loans (Pages 157-159, 255-256, 265-266)

Page 78 of 78

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HANDBOOK ON

आन्ध्रा बैंक कर्मचारी र्हाविद्याऱय

HAND BOOK ON RETAIL LOAN PRODUCTS

HAND BOOK ON RETAIL LOAN PRODUCTS

INTEREST RATES ON CLEAN LOANS:

HAND BOOK ON RETAIL LOAN PRODUCTS

HAND BOOK ON RETAIL LOAN PRODUCTS

2 Prescribed application is obtained and complete in all respects with relevant

3 Credit Information form is obtained and kept on record.

4 Credit Investigation Report (CIR) submitted by Credit Investigation Officer is on record

5 Credit rating index arrived and with a minimum 40% score.

6 Contact point verification conducted wherever applicable

8 Guidelines regarding eligibility, Quantum of loan, Repayment period, Guarantee / Co-

11 In case of loans given to pensioners, whether the pensioner is drawing pension

13 Loan is processed through LAPS

15 Necessary documents have been obtained and are complete

16 Documents are properly stamped

17 Post Dated Cheques / ECS Authorizations are obtained

19 Rate of Interest is charged correctly and Processing charges are collected

HAND BOOK ON RETAIL LOAN PRODUCTS

LOANS ABOVE 36 MONTHS

Processing Charges Administrative Charges

HAND BOOK ON RETAIL LOAN PRODUCTS

BRANCH HEADED BY AMOUNT (RS. IN LACS)

1. Application for Personal/Consumer loan, in the prescribed format

2 Prescribed application is obtained and complete in all respects with relevant

3 Credit Information form is obtained and kept on record.

4 Credit Investigation Report (CIR) submitted by Credit Investigation Officer is on record

5 Credit rating index arrived and with a minimum 40% score.

6 Contact point verification conducted wherever applicable

HAND BOOK ON RETAIL LOAN PRODUCTS

10 In case of loans given to pensioners, whether the pensioner is drawing pension

12 Loan is processed through LAPS

14 Necessary documents have been obtained and are complete

15 Documents are properly stamped

17 Post Dated Cheques / ECS Authorizations are obtained

20 Borrower‟s Margin is ensured

21 Rate of Interest is charged correctly and Processing charges are collected

HAND BOOK ON RETAIL LOAN PRODUCTS

Up to 36 Months Above 36 Months

BRANCH HEADED BY AMOUNT (RS. IN LACS)

1. Application cum delivery letter (AB 28 A/B/C/D)

HAND BOOK ON RETAIL LOAN PRODUCTS

3 Credit Information Form is obtained and kept on record

4 Credit Investigation Report(CIR) submitted by Credit Investigation Officer is on record

5 Loan is processed/sanctioned through LAPS

6 Guidelines regarding eligibility, Quantum of loan, Margin, Security, repayment period,

8 Necessary documents have been obtained and are complete

9 Documents are properly stamped

10 Prescribed Margins have been maintained (in respect of LSS)

11 Assignment/Lien/Pledge is noted with the concerned Authorities.

13 Co-obligation obtained for loans above Rs.50000/-

15 Pledged Shares are in the Bank‟s approved list

17 DP Register is maintained in case of Pledged Shares and DP is sufficient

HAND BOOK ON RETAIL LOAN PRODUCTS

HAND BOOK ON RETAIL LOAN PRODUCTS

BRANCH HEADED BY AMOUNT (RS. IN LACS)

1. Application for Vehicle loan, in the prescribed format

HAND BOOK ON RETAIL LOAN PRODUCTS

2 Prescribed application is obtained and complete in all respects with relevant

5 Credit rating index arrived with a minimum 40% score.

6 Contact point verification conducted wherever applicable

8 Guidelines regarding eligibility, Quantum of loan, Repayment period, Guarantee / Co-