Introduction to Retail Loans India has emerges as one of the largest and fastest growing economies of the world

during the last decade. The strengthening of the economy in India has been fuelled by the convergence of several key influences, like growth of the key economy sectors, liberalization policies of the government, well-educated work force and the emergence of a middle class population. India, having the second largest population in the world, is on its way to become the world's fourth largest economy in a span of 2 decades. Due to the restrictive regulatory environment and strict policies of the government of India until the early 1990's the public sector banks and other scheduled banks were the major lenders. Even with the entry of private banks, in the initial phase, there was limited competition between the public sector banks and private banks. Also, the thrust was not on developing the economy consistently through credit growth. Hence, banks did not feel the need to foray into the sectors that were under served. In the current scenario, banks have been thriving on retail lending. The focus of banks now, is to increase the probable profits while limiting possible losses. An increase in market penetration brought about a change in the business environment and in the way banks conducted their business. There was a change in terms of innovation in products as well as processes to cater to the demands of the new age customer on one hand and to protect the bank from multiple risks on the other. Retail exposure of banks includes various types of retail credit, such

as residential mortgages, consumer credit cards, automobile and personal loans, loans against securities, and small business loans. Importance of retail lending Traditionally, bank lending has been mainly for financing the requirements of industrial and corporate sector due to the obvious advantages involved such as low cost of operation and servicing the accounts, higher returns etc. With the advent of economic reforms the process of liberalization and disintermediation has set in among all sectors

of the economy. As a result, the need for bank credit from corporate sectors has been reduced because of the alternative sources of finance available to them. Further the treasury management operations in private sector companies have gained momentum resulting in better management of funds and less dependence on bank credit. Today the borrowing companies are operating in a buyer's market wherein they are in a position to negotiate the terms of credit in their favour to the detriment of the interests of the commercial banks. In this situation banks are, by necessity required to focus their attention to other business segments to channalise/deploy their credit. If we look at the macro level, around 70 to 73% of the total savings mobilised in the form of financial assets flow from the household sector. Within this sector the upper and middle income groups are the largest contributors who have considerable disposable income and therefore have high propensity to save and to absorb credit. According to a survey conducted by the planning ministry, around 30% of the entire population of the country belongs to middle class. Further it is estimated that every year there is an addition of 15 % to this population. It is this market - niche middle and upper middle-income groups, which has tremendous potential for savings as well as absorption of credit. Hence retail-lending schemes targeted towards this market have obvious advantages. Unique Features of Market Segment: Wants Precedes Means The demand/needs of the middle class are on the rise and another interesting feature of their needs is that they are interested in satisfying their needs/wants even before they have sufficient savings in this regard. This offers high potential/scope for specially packaged retail lending schemes. Continued Relationship The middle class market segment offers enough scope for other business such as deposits, services, fee based income etc., in addition to providing patronage of their

associates /relatives. Further the satisfied customers under the segment will act as our marketers in the long run. Less Price Sensitivity When once a bank is in a position to deliver the customer service in a satisfying manner, the segment may not be very sensitive to price. Besides they will have emotional attachment with the bank they are banking with and this can be exploited to the banks advantage by offering a wide variety of products and delivering them in a unique way. High Yield Most of the credit requirements under this targeted segment come under the category of personal loans which offer high yield. By the very nature of the loans, which are small and retail in nature, these borrowers do not enjoy the bargaining power which big borrowers have and hence the yields are always more than the bulk segment. Low Deliquency Rate As this segment is having stable income, the loan deliquency rate will be very low and there will be quicker recycling of funds resulting in better recovery and profitability. More over the people belonging to this segment give more value to their prestige than money and hence abhor defaulting bank loans due to the social stigma attached to it. Opportunity for Cross Selling Since these customers come to the bank again and again for some requirement like depositing cash/cheques, payment of loan Installments, purchase of DD/PO etc., they provide good opportunity for the banker to cross sell other products like insurance, sale of gold coin etc., to the customers belonging to this segment. In view of the above unique features the middle and upper middle-income group market offers us good scope for evolving a corporate strategy to tap this high potential for Banks advantage. The retail lending schemes targeted towards this segment not only

aim at fulfilling the specific needs and tastes of these individuals and groups but also help to build enduring relationship with them. Accordingly our Bank had launched various packaged retail lending products under the brand "CORP Schemes" during the year 1993-94. These schemes are modified/repackaged and also new schemes introduced from time to time keeping in view the changed market requirements.

Retail Loans - Characteristics These are small size loans These loans meet the needs of a large number of customers with well diversified The target customers are generally individuals or small organizations These loans offer standard products to customers. Very rarely a customer's The operations of retail credit are centralized in most of the banks Bankers can make quick credit related decisions because of decentralization These loans are designed to cover varied segments of risks High volume business High number of transactions Salient features of retail loans

portfolios

requirement is customized

Types of facilities:

Loans are the finance facility of a fixed amount extended to meet a onetime requirement of a customer, for a fixed tenure, to be repaid over a period in installments. To enable customers to meet their emergency requirements, bankers permit them an overdraft [OD]. This means that bankers allow the customer to withdraw more than the credit balance in the customer's current account or give a temporary loan in the current account itself.

Secured/Unsecured facilities:

Secured loans are always secured by an underlying asset against which funding is extended. This lending is also known as asset based lending. A specific charge is created against such an asset. This gives the banker/lender the right to take possession of the asset and sell it to recover the loan in case of default. Unsecured loans do not have any underlying security and are purely extended based on the creditworthiness of the borrower. This is also known as non-asset based lending.

Interest:

On a loan given at a fixed rate, interest is charged throughout the tenure of the loan at that rate which is fixed at the time of granting the loan. The customer has to pay interest at the contracted rate irrespective of whether the interest rate in the market goes up or down. In case of floating rate of interest, the rate at which the interest is charged on the loan varies from time to time according to the movement of interest rate in the market.

Tenure:

The tenure for a loan depends upon the amount of the loan and repayment capacity of the customer. However, the maximum tenure permitted depends upon the period over which the asset financed could depreciate completely.

Loan to Value ratio: Loan to Value ration [LVR] refers to the maximum percentage of the value of the

asset that is given as a loan. It varies according to the nature of the asset and also the rate at which the asset is expected to depreciate or reduce in value.

Scope of retail loans in bank, particularly in corporation bank Returns are high Simplification of procedures More reliable Widely available Development of various other schemes

Different schemes and their rate of interest CORP HOME CORP VIDYA CORP VEHICLE Others

CORP HOME (home loans) Loans initially disbursed on or after 14.02.2011 (linked to the base rate) Tenure Loans upto Rs. 20 Loans above Rs. Loans above Rs. lakhs 20 and upto Rs. 30 30 lakhs and upto lakhs Rs. 75 lakhs Upto 5 years 10.00% 10.25% 10.75% Above 5 years and upto 15 years Above 15 years and upto 25 years 10.25% 10.50% 10.50% 10.75% 11.00% 11.25%

Loan tenure Upto Rs. 4 lakhs Above 4 and upto 7.50 lakhs Above Rs. 7.50 lakhs

CORP VIDYA (education loans) Loans initially disbursed on or after 14.02.2011 (linked to the base rate) 11.65% 12.65% 12.15%

Tenure Upto 3 years

CORP VEHICLE (vehicle loans) Loans initially disbursed on or after 14.02.2011 (linked to the base rate) 11.00% 11.50% 12.00%

Above 3 years and upto 5 years Above 5 years and upto 7 years

OTHERS (initially disbursed on or after 14.02.2011) SCHEMES RATE OF INTEREST Corp demat 15.65% Corp consumer 14.65% Corp mortgage 15.00% Corp rental 15.40% Corp IPO 13.90% Corp ghar shobha 11.15% Corp Byte 14.15% Corp Vyapar 13.65% Corp Shubha vivah 13.15%

Various schemes available with the corporation bank are: CORP HOME CORP PROFESSIONAL CORP GHAR SHOBHA CORP CA CHOME PREMIUM-NRI CORP CS CORP SITE LOAN CORP VIDYA CORP VEHICLE CORP BYTE

CORP MORTGAGE CORP TUTOR FEE CORP SHUBHA VIVAH CORP VYAPAR CORP PERSONAL CORP DEMAT CORP MITRA CORP CONSUMER CORP DOCTOR -PLUS CORP IPO CORP SHELTER

A brief about some of the common schemes has been given below Corp Home Eligibility-Where property is held in joint names, all the joint holders should join as coapplicants to the loan. Age of the borrower/s shall be between 18 years to 60 years subject to the condition that repayment period (including repayment holiday if any,) shall not go beyond the retirement age, in case of salaried class, and 70 years of age, in case of other than salaried class. Purpose For construction of house/flat, purchase of ready built house/ flat. For take-over of housing loans from other Banks/Institutions. For repairs/renovation /extension/improvement of existing house/flat [to be considered under Corp Ghar Shobha Scheme only] Security: Mortgage of house / flat purchased out of Bank Finance.

Rate of Interest: Rate of interest is based on loan amount sanctioned and not on loan amount availed. Conversion Charges From Floating to Fixed: 1% of the outstanding balance, inclusive of up to date interest as on the date of conversion. From Fixed to Floating: The existing fixed rate loans including those already subjected to reset, where rate of interest charged is below 12% may be converted to floating rate at the option of the borrower at the time of next reset by payment of conversion charges at 1% on the loan amount outstanding as on the date of conversion. The existing fixed rate loans including those already subjected to reset, where rate of interest charged is 12% and above, may be converted to floating rate at the option of the borrower at any time during the currency of the loan by payment of conversion charges at 2% on the loan amount outstanding as on the date of conversion. Guarantee- Third party guarantee at the discretion of the Sanctioning Authority. Wherever third party guarantee is not obtained, co obligation of Spouse is mandatory. However, ZO may permit waiver of co obligation of spouse. Wherever ZO permits waiver of co -obligation of spouse, in such cases, third party guarantee need not be insisted. If, applicant is unmarried/divorcee, co obligation of parent/s (irrespective of their age) or third party guarantee may be obtained. Maximum number of Housing loans permitted Maximum of three housing loans, other than loan for Repairs/ Renovation/ Improvement/ extension, may be sanctioned, subject to borrowers income/ repayment capacity, satisfactory status of the previous loans etc.

All housing loan limits availed under General Scheme for purchase of/ construction/ repair/ renovation/ extension etc., shall be clubbed together for the purpose of charging Rate of Interest.

CORP GHAR SHOBHA SCHEME Eligibility-Where property is held in joint names, all the joint holders should join as co applicants to the loan. Age of the borrower/s shall be between 18 years to 60 years subject to the condition that repayment period (including repayment holiday if any,) shall not go beyond the retirement age, in case of salaried class, and 70 years of age, in case of other than salaried class. Purpose For repairs/renovation /extension/improvement/furnishing of house/flat. For take-over of housing loans from other Banks/Institution, originally sanctioned for repairs/renovation /extension /improvement/ furnishing of house/flat. Security Mortgage of house / flat. Age of the property shall not exceed 30 years. Repayment period shall not exceed balance life of the building.

Rate of Interest Interest rate [floating rate] is linked to the Base Rate. Loan under the fixed rate option is not available. Rate of interest is based on loan amount sanctioned and not on loan amount availed.

Pre Payment Penalty Where the prepayment is made by the borrower out of his own source/ fund, prepayment charges shall not be levied. In all other cases, Prepayment charges shall be 0.50% of loan amount prepaid.

CORP VEHICLE SCHEME Eligibility- Individuals (Professionals/ Businessmen/ Salaried class & Others) NRIs, Sole Proprietorships, Partnership Firms, HUFs, Companies / Trusts/ Institutions are eligible. For 2 & 3 wheelers: Applicants shall have a minimum NET annual income of Rs.0.50 lakhs. For Four wheelers: Applicants shall have a minimum NET annual income of Rs.1.20 lakhs. Purpose For purchase of 2/3/4 wheelers/heavy Road/ water transport vehicles /for personal/ transport/ business/commercial purpose. Tipper lorry may also be considered. Vehicles used for mining/ digging activities, like excavators/ Bulldozers/ JCB/Crane/Road Rollers etc., shall NOT to be considered under the scheme. Amount For 2 wheelers: Maximum of Rs. 1.00 lakh per vehicle For 3 wheelers: Maximum of Rs. 2.00 lakhs per vehicle For 4 wheelers & heavy vehicles, /water transport vehicles: Rs.75 lakhs per vehicle.

Rate of Interest- Floating rate- linked to the Base Rate. (Fixed rate option is not available under the Scheme)

Security- Hypothecation of the vehicle along with noting of Bank's lien in the Registration Certificate and Insurance Policy. Guarantee- Not Mandatory. However, third party guarantee or any collateral securities may be stipulated, on case-to-case basis, by the Sanctioning Authority at his/her discretion and based on risk perception. Collaterals- Collateral security shall be obtained only where considered necessary, at the discretion of the sanctioning authority. CORP MORTGAGE SCHEME Eligibility: Individuals in the age group of 18 - 65 years owning residential /commercial property / Industrial property [land and/or building] and who are Income Tax Assesses. Repayment period shall not go beyond 70 years of age of the borrower unless co applicant/s has independent income to service the loan. NRI, Partnership Firms, Companies, HUF and Trusts are also eligible, subject to the condition that the applicant should be an Income tax assessee. More than one loan may also be extended, to the applicant against the same/any other property subject to required margin on security, Income, repayment capacity etc. Purpose- To meet personal expenses like marriage, medical, etc. & for business requirements. Nature of facility- Facility shall be in the form of either Running account or Term Loan as per the requirement of borrower.

AmountThe maximum loan amount shall not exceed 10 times of the Net annual Income. Loan amount shall be restricted to 50% of the market value of the Property Mortgaged, as per the latest valuation report, not older than 6 months, from the Approved Valuer of the Bank. Minimum Rs. 2 lakhs & Maximum Rs.500 lakhs.

Rate of Interest- Floating rate linked to the Base Rate. (Fixed rate option is not available under the Scheme) Security Mortgage of immovable property against which the loan is sought. Age of the property to be mortgaged shall not exceed 20 years.

Guarantee-Not Mandatory. Prepayment Charges Nil Repayment Where the loan is in the form of Term loan, the same shall be repayable within maximum repayment period of 7 to 10 years. Running account facility shall be subject to annual review/ renewal. It shall be repayable on demand. The limit once sanctioned will hold good for 3 years. CORP CONSUMER SCHEME EligibilityIndividuals with minimum net annual income of Rs. 1, 20,000/ Loan is restricted to salaried class & salary shall invariably be routed through the Branch.

Purpose- To finance purchase of consumer durables such as Refrigerator, Cooking range, Food Processor, Grinder, Television, Electronic Audio System, Washing Machine, ACs, Microwave Oven, Lap Top/ PCs including accessories, Mobile Phone, Multi Media Kits, UPS, Digital Camera, Generators, Hand Video Camera and furniture. Yo-Bike, Electric Bike, Solar water heating, Solar electricity systems. Note: More than one item can be financed under the scheme. Amount- Maximum Rs. One lakh. Rate of Interest- Floating rate of interest linked to the Base Rate. (Fixed rate option is not available under the Scheme) Security- Hypothecation of the item(s) purchased out of Bank's finance. Guarantee- Suitable third party guarantee is mandatory. Collaterals- Collateral security shall be obtained only where considered necessary, at the discretion of the sanctioning authority. Repayment Maximum of 36 months in EMIs. Repayment period shall not exceed retirement age.

CORP VIDYA SCHEME Eligibility of the Student Student should be an Indian national. Should have completed previous qualifying examination. Secured admission to Professional/Technical courses in India or abroad through Entrance test / Merit based selection process/Management quota.

Eligible CoursesFor Studies in India: Graduation course: BA. B.Com, B.Sc., etc. Post Graduation course: Masters & PhD. Professional courses: Engineering, Medical, Agricultural, Veterinary Law, Dental, Management, and Computer etc. Courses like ICWA, CA, CFA, etc. Courses conducted by IIM, IIT, IISc, XLRI, NIFT, etc. Regular Degree/Diploma courses like Aeronautical Pilot training, Shipping etc., approved by director General of Civil Aviation/ Shipping , if the course is pursued in India. For Studies abroad: Graduation: For job oriented Professional/Technical courses offered by reputed universities & Commercial Pilot /Shipping training course. Post Graduation: MCA, MBA, MS etc. Course conducted by CIMA- London, CPA in USA etc. Note: Correspondence courses /Part time /Certificate /Short duration /Vocational training/ Skill development study courses are strictly not eligible for finance under the scheme. Diploma courses for study abroad is not permitted Eligible Expenses Fee payable to College./School/Hostel /Examination/ Library/ Laboratory/ Purchase of Books/ Equipments/ Instruments/ Uniforms/ Caution Deposit/ Travel expenses/Passage money for studies abroad.. Purchase of computer if essential for completion of course. Confirmation/ recommendation letter from the College/Institution need not be insisted.

Hostel fees/expenses may be considered as an eligible item for finance under the Scheme. Payment of hostel fees should be made directly to the hostel authorities. In exceptional cases if the student does not get the hostel accommodation due to limited hostel rooms and is required to stay in private accommodation or paying guest accommodation, reasonable amount of lodging and boarding expenses may be considered for the purpose of fixing loan amount.

Payment towards accommodation and food may be made directly to the student subject to the condition that the student should declare about the non-availability of accommodation in college hostel supported by a letter from college to this effect and that the student should not be a resident of that place.

Other expenses required to complete the course Blike study tours, project work, thesis etc. Insurance premium for life of student borrower. Building fund/refundable deposit supported by institution bills/ receipts are Not eligible.

Quantum of loan Studies in India: Maximum of Rs.10 lakhs Studies Abroad: Maximum of Rs.20 lakhs

Security Up to Rs.4.00 Lakh: Co-obligation of Parent/s, Grand Parent/s (if parents are deceased) No other security. Above Rs.4.00 Lakh & up to Rs.7.50 Lakh: Co obligation of Parent/s Grand Parent/s (if parents are deceased) together with collateral in the form of suitable third party guarantee. Above Rs.7.50 Lakh: Co- obligation of Parents/Grand Parents (if Parents are deceased) together with tangible collateral security along with the assignment of future income of the student for payment of installments.

Rate of Interest- Floating rate of interest linked to the Base Rate. Simple interest will be charged during repayment holiday period. (Fixed rate option is not available under the Scheme) CORP VYAPAR SCHEME Eligibility Traders engaged mainly in buying and selling of goods/commodities either on retail or wholesale basis including traders dealing in commodities that were earlier covered under Selective Credit Control guidelines. Borrowers can be Individual / Sole Proprietorship / Partnership firm/HUF/ Joint Stock Company or any other entity engaged in trading/business activity for a period of 1 year prior to seeking sanction of loan. Units engaged in manufacturing/processing/ SSI units/Contractors/ Commission agents etc are NOT eligible for loan under the scheme. Applicant must have either sales tax-registration OR trade/business license/permit issued by any Statutory Authority/Recognized body. Purpose- For providing short term working capital facilities. Quantum of loan- Minimum loan shall be Rs.0.50 lakhs & Maximum is Rs.50 lakhs. Rate of Interest- Floating rate of interest linked to the Base Rate. (Fixed rate option is not available under the Scheme) Security- Mortgage of immovable property & / OR Pledge of specified financial assets & hypothecation of stock in trade and receivables. Age of the building offered as security shall not exceed 20 years. Loan against continuing security of property already mortgaged to the Bank for any other credit limits is strictly NOT permitted. Multiple loans against the same property is not permitted.

Guarantee Third party guarantee at the discretion of the Sanctioning Authority. In case of Firm/Companies, guarantee of Partners/Directors is mandatory.

RepaymentSecured demand loan repayable in maximum of 60 months, subject to annual review. OR Running account in the form of secured over draft. Running account facility shall be subject to annual review/renewal. Prepayment Charges -NILOTHERS CORP PROFESSIONAL To finance acquisition of office premises for self-occupation by the registered medical practitioners, practicing advocates, chartered accountants, company secretaries, consulting engineers and architects.

CORP CA To finance the cost of acquisition of new office premises, partly or fully constructed for the purpose of occupation of business/profession of the firm OR to part finance the cost of acquisition of ready built office premises for the purpose of occupation of business/profession of the firm.

CHOME PREMIUM- NRI For purchase of ready built house/flat.

For construction of house in pre owned land. For purchase of land and construction of house thereon. For takeover of housing loans from other banks/institutions, originally sanctioned for the above purposes.

Loan for repair/ renovation/ improvement/ extension/ furnishing not to be considered under this variant.

CORP CS To part finance the cost of acquisition of new office premises, partly or fully constructed for the purpose of occupation of business/profession of the firm OR to part finance the cost of acquisition of ready built office premises for the purpose of occupation of business/profession of the firm.

CORP SITE To finance the application money (initial deposit) payable to local development authority for allotment of residential site/plot.

CORP BYTE To finance purchase of personal computers/laptops/notebooks/palmtops/PDAs/Tablet PCs etc., including other peripheral accessories like pointers/ printers/ scanners/ digital stylus/ external AC converters/ UPS etc., essential for pursuing studies. CORP TUTOR FEE For financing tuition fess of entrance exams for professional courses such as CAT, CET, IIT, JEE, AIJEE, GATE, CA, CS, ICWA, COMED etc.

CORP SHUBHA VIVAH To meet the expenses related to marriage. [Such as shamiana, hall booking, food & catering lodging facility for guests, conveyance, purchase of jewellery, clothes etc.] Expenses related to honeymoon for newly wedded couple. [i.e. passage money, conveyance, lodging, boarding, tour package etc.]

CORP DEMAT To provide liquidity to investors against shares. To meet contingencies and personal needs or for subscribing to the rights/ new issue of shares/ debentures/ bonds or for purchases in the secondary market.

CORP MITRA To meet personal/ domestic expenses/ contingencies.

CORP DOCTOR-PLUS Loan is for purchase of brand new electro medical & other sophisticated equipments including OT equipments, air conditioners, generators, ambulance, refrigerators, personal computers and accessories with related software and UPS etc.

CORP IPO To provide finance to the general public to subscribe to IPO/ public issue/ rights/ ESOP of reputed corporate/ corporate approved by the bank from time to time.

CORP SHELTER Supplementing pension/ other income. Upgradation/ renovation/ extension of residential property. Uses associated with home improvement/ maintenance/ insurance of residential property. Medical/ emergency expenditure for maintenance of family. Meeting any other genuine needs.

Following are the common guidelines, wherever applicable, for all corp schemes: OBTENTION OF INCOME PROOF a) For Salaried class: Last 3 months salary slip /certificate, duly attested to be obtained. However, repayment capacity is arrived at as per latest salary slip/certificate. (If last drawn salary is low due to loss of pay etc, notional salary for the month shall be considered with proper justification) However, if the borrower/s has/have regular income, other than salary, such as Over Time, Performance related Bonus/ Incentives/Agricultural income etc., which is not appearing in pay slip/certificate but shown in IT return, due to which income shown in IT returns is higher than as shown in salary slip/certificate, in such cases, IT return may be considered to arrive at repayment capacity. b) Other than Salaried class: Last 3 years IT returns to be obtained to verify the consistency of income & regular filing of the returns. However repayment capacity is arrived at as per net income as per latest IT return. Year to year 25% variation in income is tolerated. If variation is more than 25%, average net income as per last 3 years IT returns/ Balance sheets shall be considered. Where IT returns is yet to be filed, Audited financial statements may be considered on case to case basis.

c) Other than Salaried class (Where the borrower is not an IT assessee. i.e. income is less than IT exemption limit): Last 3 years P& L a/c and Balance sheets to be obtained to verify the consistency of income. However repayment capacity is arrived at as per net income as per latest P&L a/c and Balance sheet. Year to year 25% variation in income is tolerated. If variation is more than 25%, average net income as per last 3 years P & L a/c and Balance sheets shall be considered. d) In case of Agriculturists & others not covered under a, b, c above: Income certificate issued by Revenue Authority OR other Competent Authority shall be obtained. Note: Under NO circumstances, provisional income, certified by Chartered Accountant shall be considered. NET INCOME Take home salary: Gross salary is reduced by compulsory/statutory deductions, such as PF/SSS /Labor Welfare fund/ Profession Tax/Income Tax / LIC direct payment etc, Net annual income (where IT return is submitted): Gross income as shown in IT return is reduced by /perquisites value /compulsory/ statutory deductions such as PF/SSS/Labour Welfare Fund/ Profession Tax/Income Tax / LIC direct payment etc. Net annual income (where P&L a/c & Balance sheet is submitted): Net profit is reduced by Income Tax/LIC direct payment/profession tax etc. Note: Depreciation/Cash accrual may be added back to net income wherever the same is charged to the income. EMI/ NOTIONAL INTEREST AS % TO NET INCOME EMI/Notional interest of existing & proposed loan together shall not exceed: 50% of net income/take home salary, where net annual income is upto Rs.3 lakhs. 60% of net income/take home salary, where net annual income is above Rs.3 lakhs & upto Rs.10 lakhs 70% of net income/take home salary, where net annual income is above Rs.10 lakhs.

THIRD PARTY GUARANTEE Guarantee of any person other than Father, Mother, Spouse, Son, Daughter, & Sister shall be treated as third party guarantee. However, Brother may be taken as guarantor. REPAYMENT PERIOD IN RELATION TO AGE OF THE PROPERTY Wherever immovable property is taken as security, repayment period, in relation to age of the property stipulated as per the Scheme guidelines, shall not exceed balance life of the property. MAXIMUM AGE OF THE PROPERTY UNDER VARIOUS SCHEMES

Scheme Corp Home /NRI Corp Ghar Shobha Corp Shubha Vivah Corp Doctor Plus Corp Professional/CA/CS Corp Vyapar Corp Mortgage Corp Vidya

Maximum age of property 30 years [For take over- 25 years] 30 years 20 years 30 years 20 years 20 years Not prescribed