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RETAIL LENDING PRODUCTS

AT A GLANCE

INDEX
S. No.
1
2
3
4
5
6
7
8
9.
10
11
12
13
14
15
16
17
18
19
20
21

Name of Schemes
BARODA HOUSING LOAN
BARODA HOME IMPROVEMENT LOAN
BARODA ADDITIONAL ASSURED ADVANCE (AAA)
BARODA HOME LOAN TO N.R.I/P.I.O/O.C.I
BARODA ASHRAY
BARODA
MORTAGE
LOAN
TO
RESIDENT
INDIAN/N,R,Is.
LOAN AGAINST FUTURE RENT RECEIVABLES
BARODA TRADERS LOAN
BARODA
TRADERS
LOAN
AGAINST
GOLD
ORNAMENTS/JWELLERY
BARODA ADVANCE AGAINST GOLD ORNAMENTS
JWELLERY
EDUCATION LOAN-BARODA VIDYA
EDUCATION LOAN-BARODA GYAN
EDUCATION LOAN-BARODA SCHOLAR
EDUCATION LOAN: CAREER DEVELOPMENT
BARODA
EDUCATION
LOAN-VOCATIONAL
EDUCATION & TRAINING
BARODA AUTO LOAN
BARODA
PERSONAL
/PENSION/COMPUTER/CONSUMER LOAN
BARODA LOAN TO DOCTORS
BARODA
LOAN
AG
SECURITIES-AGNSCs/KVPs/LICI POLICY/RELIEF/GOVT BONDS.
BARODA SALARY ADVANTAGE SCHEME
LIST OF IMPORTANT CIRCULARS

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Page No.

Retail Lending:
In 1992-93 economic reforms process started with submission of
Narasimham Committee Report on 16.11.1991. The phase of liberalization,
privatization and globalization started. RBI started reducing its
interference and slashing of SLR and CRR to bring at the minimum
required level, disintermediation also started empowering big corporate
to access the market for their funds requirement, non banking finance
companies were also encouraged to come in the market, increasing
competition for commercial banks. A number of foreign banks and private
sector banks also came in the fray.
In view of above Retail Lending is an area emerging for absorbing ample amount
of bank funds. The growth of retail lending, especially, in emerging economies, is
attributable to the rapid advances in information technology, the evolving
macroeconomic environment, financial market reform, and several micro-level
demand and supply side factors.
Target borrowers under this sector are the middle class people and middle class
people are low default area. Researchers have shown that high class and low
class people are more likely to default in repayment. Population of middle class
people is increasing and break down of joint family system has created the
scope of more requirements of household consumer durable goods.
Opening of doors for the imported goods under WTO has resulted in flush of
good quality consumer durables at reasonable prices, thereby increasing the
demand from the public. It has created a scope of credit absorption for the
bank. This sector of credit is subject to higher rate of interest providing ample
yield to the bank along with diversification of the risk because smaller loans
are granted to a large number of people.
From the above discussion, it is clear that Retail Lending is the need of the hour
and survival is very difficult, in its absence. Now question arises where to do
Retail Lending. These are the schemes having potential in every area of the
country. In case of rural/ semi urban areas, a good number of families are
emerging as the prospective borrowers with the increase in rural electrification,
education and connectivity with the cities. TV, Fridge and Scooter/ Motor
cycle are the articles of daily use for them. People from villages getting jobs in
nearby cities, usually commute daily for service and come to village in the
evening, school teachers and other staff of the school and dispensary in the
village can be prospective borrowers. Shop keepers and other small business
people can also avail the loans under Retail Lending schemes. Some progressive

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families in the village can be tapped under the schemes for Baroda Housing
Loans, education loans and other consumer goods items.
Bank of Baroda offers a wide range of retail loans to meet diverse needs of
customers whether the need is for a new house, child's education, purchase of a
new car or home appliances, our unique and need specific loans enable to
convert their dreams to realities.
Retail Loan Factory:
As a part of various customer centric initiatives, our Bank established ,Urban
Retail Loan Factories
(URLF) at various centers to augment Retail Business.
The RLF comprises of Sales and processing units and works on assembly line
principles. The basic functions are generation of loan leads and its conversion
in to sanction. Once sanction is accorded by RLF the entire file containing all
papers/ documents are sent to the Branch of the choice of applicant for
disbursement and further servicing of account. However, zerox copies of
papers/ documents are maintained at RLF.
The primary objective of U.R.L.F S are

To market /sell various retail products.


To assist Regional /Zonal authorities in gathering information about
builders functioning in the area for the purpose of approving the builders
and their projects.
To popularize the Banks products through participating in various
exhibitions ,fairs, confereneces.etc
To cross sell the banks various products.

Retail Products.

Our Bank has installed a wide range of retail products as under;


1. Baroda Home Loan
2. Baroda Auto Loan
3. Baroda Education Loan
4. Baroda Mortgage Loan
5. Baroda Traders Loan
6. Baroda Loan to Doctors.
7. Baroda Personal Loan.
8. Baroda Ashray Loan(Reverse Mortgage Loan)
9. Loan against Future Rent Receivables.

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10. Baroda Loan against securities.


BARODA HOUSING LOAN
As we are aware that our Bank was having different products related to Home
Loan sector. These Loan Schemes vide Banks Circular no. BCC: BR: 101:93 dated
28.03.2009 have been realigned for operational convenience under the name
BARODA HOME LOAN as below:
1) Baroda Home Loan
2) Baroda Home Loan to NRIs /PIOs
3) Baroda Home Improvement Loan
4) Baroda AAA to Residents / NRIs
5) Interest Subsidy Scheme for Housing to Urban Poors
PURPOSE:
1) Construction of new dwelling units / flat
2) Purchase of old houses, generally not more than 25 years old (based on
structural soundness and residual life of the house).
3) Repayment of loan availed from other banks / institutions.
4) Purchase of plot to construct a house within a period of 3 years from the
date of purchase.
5) Houses/Flats purchased or constructed from own sources(period not
exceeding 2years)
6)
Reimbursement of expenses incurred for houses / flats constructed /
purchased recently from own sources to subject to rating of HL-1,HL- 2,HL3& house must be purchased/constructed recently (not prior to 24
months).
ELIGIBILITY:
Individual in single OR joint names
Principal applicant must be employed minimum for last three years.
HUFs are not eligible for loan.
AGE:
Principal Borrower 21 years & Co borrower may be of 18 years.
Age of the borrower plus repayment period should not exceed 70 years
provided; Son/Daughter /Spouse who is a legal heir and preferably below 50
years of age, with sufficient income for servicing the loan repayment join as CoBorrower/Guarantor
LIMIT / AMOUNT OF LOAN:

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Maximum up to Rs. 300 lacs in Metro & Urban area & Rs.100lacs in Rural & Semi
urban Area
(Subject to repaying capacity) although this is the upper ceiling on the loan,
quantum of loan amount should not exceed as under
Monthly Income
Eligible Amount of Loan
Up to Rs.20000/
36 times of monthly income
+Rs.20000/ & upto Rs.1
48 times of monthly income
lac
More than Rs.1 lac
54 times of monthly income
Other Than Salaried
5 times AAI(last 3 years)
Wherever income of the family members is clubbed, they should be made coborrowers.
In case of Agriculturists who are predominantly dependent on agriculture
and not required to file income tax returns, their income may be assessed
by obtaining income certificate from the local competent revenue
authority only. The income mentioned in the certificate must be assessed
properly taking in to consideration land holding of the Agriculturist, area
of land actually being cultivated by him, cropping pattern and acreage
under different crops together with number of crops harvested in a year
depending on availability of irrigation facility etc. The assessment of
income so arrived must be properly recorded with justification in the
appraisal note.
Payment of all type of Life Insurance Premia (except premia of Unit
Linked Insurance Plan -ULIP) irrespective of Insurance Company issuing
the policy, need not be considered for Deduction.
For persons other than Salaried, Depreciation may be added into
their income for the purpose of calculation of loan Limit; subject
to average depreciation during the last -3- years or the
Depreciation during the current year whichever is Lower and the
latest Audited Balance Sheet should not be older then -9months.
RATE OF INTEREST:
With floating rate option (Interest rate as advised from time to time)
LOAN REPAYMENT PERIOD:
1. Up to 30 Years (including moratorium period)
2. Moratorium period maximum 36 months(18 months for under construction
houses & building upto 7th floor and thereafter 6 months additional
moratorium per floor)
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3. Age of the borrower plus repayment period should not be beyond retirement
age or 70 years max subject to Son/Daughter /Spouse who is a legal heir
and
4. preferably below 50 years of age, with sufficient income for servicing the
loan
5. repayment joins as Co-Borrower/Guarantor case of others.
REPAYMENT CAPACITY:
a. In case of Salaried Persons :
Income Bracket (Monthly)

Total deductions not to exceed


(Including Proposed EMI)
40%
50%
60%

Up to Rs. 20000/+20000/- and upto Rs.50000/


Above Rs.50000/
a. In case of Others :
Income Bracket (Monthly)

Total deductions not to exceed


(Including Proposed EMI)
50%
60%
70%

Upto Rs. 240000/>240000/- and upto Rs.12 Lacs


Above Rs.12 Lacs
MARGIN:
Purpose
Purchase of Plot
House/Flat
already
constructed from
own sources
All others

Salaried
Monthly income
upto Rs.20000/
20%
25%

Others
Monthly income
above Rs.20000/
20%
20%

20%
20%

20%

15%

15%

Margin will be only on actual cost of House Property / plot excluding Cost
of Stamps, Registration Charges and other expenses, if any. Please note
that these guidelines shall apply on all home loans of more than Rs.20 lac to
Resident Indians /NRIs /PIOs with effect from.20th February 2012.
However, in case of home loans up to Rs.20 lac, Registration Charges, Cost of
Stamps and other Expenses like Life Insurance Premium etc can be included
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in the project cost for arriving at the loan limit to be sanctioned after
stipulating margin of 20% subject to condition that Loan to Value(LTV) Ratio
does not exceed the level of 90%. (BCC:BR:104:59 7th February 2012)
SECURITIES:
Equitable Mortgage of plot / house or
Collateral securities like NSCs, LIC policies, Shares etc.
Personal guarantees.
Copy of sanction letter duly acknowledged by the borrower / guarantor is
part of the loan documents.
Duly stamped and registered original agreement to sale executed by builder
in favour of borrower.
Original receipt in respect of registration of Agreement to sell.
Copy of the map of the building duly approved by the appropriate authority
INSPECTION:
Pre sanction inspection is to be carried out as usual. At each stage of
disbursement of the loan, inspection of the dwelling unit must be carried out.
After completion of the house, post disbursement inspection be carried out at
least once in 3 years if the account is regular otherwise as per administrative
guidelines.
FREEBEES:
Silver Card to borrowers with loan limit of above Rs. 2 lacs and up to Rs. 5
lacs.
Above Rs. 5 lacs & up to Rs. 10 lacs EXCLUSIVE CARD
Above Rs.10 lacs GOLD CARD
Free personal accident Insurance.
ADDITIONAL ASSURED ADVANCE FACILITY:
An additional loan to home loan borrowers for any purpose other than
speculative and illegal purpose .
REPAYMENT EQUATED MONTHLY INSTALMENTS:
At the time of granting loan EMI to be calculated as per chart given in
Banks publication no. 138-Pages 21 to 30 (Chart No. 3 for lump sum
annuity deposits monthly repayment) EMI should be in figures rounded
off to next higher rupee. It can also be calculated through LAMOD
command in finacle instantly.
Interest from the date of disbursement to the date of commencement of
EMI should be recovered separately on monthly compounded basis.

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Monthly recovery under EMI shall be credited in full to the loan account.
As regards application of interest, the same should be calculated on daily
products basis,
EMI would undergo modification, if Base Rate is changed. Similarly, If the
borrower remits any lump sum in-between, EMI will require to be refixed.
Recovery of interest for the pre-EMI period:
a. Interest charged during the pre-EMI period is to be recovered as and
when debited, before commencement of recovery by EMI.
b. For any reason, if the borrower is not in a position to repay the interest
as and when charged in one lump sum, the same may be recovered within 2
months, by charging overdue interest as and where applicable, as per rules
/extant guidelines.
INSURANCE:
Free Personal accident Insurance. Life insurance cover for Natural death is also
available to borrower/Jt. Borrower on payment of appropriate Premium under tieup arrangement with Kotak Mahindra (wef 1.1.10) & India First Life Insurance Co
(wef 1.9.10). Premium amt for obtaining cover can be financed as part of home loan
at request of borrower & accordingly EMI is fixed. Free Property Insurance has
been withdrawn w.e.f 10.09.2012 (BCC:BR:104:317 dated 10.09.2012)

OTHER ASPECTS:

Normally housing loan is to be considered only for purchase / construction


of one house / flat. However, looking to the size of the family, income
eligibility and repayment capacity of the applicant, housing loan can be
considered for purchase of two flats / two houses also provided both the
flats / houses are adjacent or in the same place (city / town / village) and
acquired for self occupancy. The request of a person who already owns a
house can also be considered for construction / buying a second house /
flat in the same or other village / town / city for the purpose of selfoccupation.

If the car parking place is located in the same building / society /


compound, the cost of car parking can be included in the cost of house /
flat for granting housing loan. However, it is to be noted that car parking
area should be identifiable, specific and be clearly mentioned in the sale
agreement / allotment letter.

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Person who is provided accommodation by his employer is also eligible for


housing loan, even though he is not in a position to occupy the same in
near future and proposes to let it out on rental basis.
In case of individuals who have raised housing loans from other sources
and who need supplementary finance, credit facility may be considered
after obtaining pari- passu or second mortgage charge over the property
mortgaged in favour of other lenders and / or against such other security
as deemed appropriate.

a. PRIORITY SECTOR REPORTING

Loans to Individuals up to Rs.25.00lacs in Metro;(With population


above 10lacs.) & Rs.15.00lacs in other centers.
Rs. 10.00lacs per unit to Govt Agency for construction of dwelling
units or for slum clearance & rehabilitation of slum dwellers.
Loans sanctioned by banks for housing projects exclusively for the
purpose of construction of houses only to economically weaker sections
and low income groups, the total cost of which does not exceed `10
lakh per dwelling unit, will qualify for priority sector status.The
income of such families is kept up to Rs.1.20lacs irrespective of
location.
Loans for repairs to the damaged dwelling units of families up to Rs. ` 2
lakh in rural and semi- urban areas and up to Rs. 5 lakh in urban and
metropolitan areas.
Area of operation: In terms of the revised guidelines, all the branches
including at Metro & Urban centers are permitted to consider housing loan
proposals. However, it is clarified that the branch in metro and urban areas may
consider housing loan near to the:
Location of new flat / house to be purchased / constructed or
Place of work / business of the applicant or
Place of present residence of the applicant or
Branch maintaining salary account of the applicant
Semi-urban and rural branches may finance in their service command area
and other easily approachable areas.
Any deviation from the above may be considered with prior approval of Regional
Authority.

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LOAN TO Value (LTV)


As per Master Circular on Baroda Home Loan BCC:BR:102/26 dated
28.01.2010 where under the head Margin (point No.8), the project cost is
defined as inclusive of:
1. Cost of plot /flat /Readymade House
2. Registration Charges
3. Cost of stamps
In addition to above, Cost of Life Insurance cover ( which may be provided at
the option of borrower) is also being included in the project cost. After
including all above, a minimum margin of 20% , as per directives of Reserve Bank
of India, is stipulated to ensure that Loan
to Value (LTV) ratio does not exceed the maximum level of 80%.
Reserve Bank of India has now come with a clarification that addition of
Registration Charges, Cost of Stamps and other expenses like Insurance
Premium to the actual cost of Plot / Flat /Readymade House overstates the
realizable value of property as Stamp Duty, Registration
Charges and other costs are not realizable and consequently the margin
stipulation is diluted below the level of minimum 20% and the LTV goes above
80% which is violation of directives of Reserve Bank of India.
However, in case of home loans upto Rs.20 lac, Registration Charges, Cost of
Stamps and other Expenses like Life Insurance Premium etc can be included in
the project cost for arriving at the loan limit to be sanctioned after stipulating
margin of 20% subject to condition that
Loan to Value(LTV) Ratio does not exceed the level of 90%.
(BCC:BR:104:59 7th February 2012 ,
RBI /2011-12/383 DBOD.No.BP.BC.78 /08.12.001/2011-12 Feb 03, 12)
Unified Processing Charges:
For Loan up to Rs 30 lacs 0.50 % on loan amount Min Rs 5000.00 +
Service tax
For loan above Rs 30 lacs 0.40 % on loan amount (Min. Rs 15000.00
+ Service tax & Maximum Rs 50000.00 + ST )
Pre Closure Charges:
No pre closure charges on housing loan in any kind of repayment.

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CIRCULAR REFERENCE
BCC/BR/97/185 Dated 14.07.2005
BCC/BR/97/195 Dated 03.08.2005
BCC/Br/97/311 Dated 14.11.2005
BCC/BR/98/42 Dated 20.02.2006
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/138 Dated 24.05.2006
BCC/RB/98/208 Dated 01.08.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/99/259 Dated 30.08.2007
BCC/BR/99/310 Dated 12.10.2007
BCC/BR/99/321 Dated 25.10.2007
BCC/BR/99/322 Dated 29.10.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009
Test your understanding
Q.1 . One
a)
b)
c)
d)
e)

of our U.S.Ps in case of housing loan is;


Free personal accident& house building insurance
Free personal accident insurance
Free life insurance
Free life & building insurance
Free house building insurance

Q2. Maximum housing loan which can be sanctioned by rural & semi urban
branches is;
a) Rs.300lac
b) Rs. 150lac
c) Rs.100lac
d) Rs.5lac
e) Rs.200lac
Q3.
Loans for repairs to the damaged dwelling units of families up to Rs.
-----lac in rural and semi- urban areas and up to Rs.----- in urban and
metropolitan areas qualifies for priority sector.
a) 1,2
b) 2,5

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c) 1,4
d) 2,4
e) 1,5

Q4. The Margin requirement for Baroda Home loan is __________ for
reimbursement of house/ flat expenses constructed from own sources in
case of income up to Rs. 20000.
a) 25%
b) 15%
c) 20%
d) 10%
e) 30%
Q5. In case of home loans upto Rs.20 lac, Registration Charges, Cost of
Stamps and other Expenses like life Insurance Premium etc can be included in
the project cost for arriving at the loan limit to be sanctioned after stipulating
margin of 20% subject to condition that; LTV does not exceed
a)
b)
c)
d)
e)

85%
95%
75%
80%
90%

Answers of the questions


Q
A

01
b

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c

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b

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04
a

05
e

BARODA HOME IMPROVEMENT LOAN


PURPOSE:
1) For repairs / renovation / improvement / extension of the existing house.
2) Purchase of furniture / fixtures / furnishing / other gadgets such as fans,
geysers, air conditioners, water filters, air purifiers, heaters, deserts
coolers, etc. required to :
* Our existing housing loan borrowers
* New borrowers
* Borrowers who have availed housing loans from other bank / HFC.
3) Property under litigation and in poor condition should not be considered for
financing. The house should not be older than 35 years. Residual life of
the house may be minimum repayment period plus 5 years to be certified
by approved architect / valuer vis--vis total repayment period of the
loan.
ELIGIBILITY:
1) All individuals (resident Indians) singly or jointly owning a dwelling unit in
their name/(s).
2) Minimum age 21 years. Maximum age of the borrower plus repayment period
should not be beyond retirement age, in case of salaried persons and 65
years in case of others.
3) Principal applicant must have consistent and stable source of income minimum
for last three years.
4) HUF are not eligible as the housing loan is not meant for the purpose of
family business of HUF and also as there are certain legal complications.
5) Takeover of existing loans for repairs/renovation/home improvement taken
from other banks / HFCs.
6) Staff members are not eligible.
7) Loans for purchase of furniture, fixtures etc. can be considered only to
those borrowers who obtain loans for repairs / renovation under the
scheme.
MAXIMUM AMOUNT OF LOAN:
1) Rs. 10 lacs with a proviso that the loan component for furniture / fixtures /
fittings / other gadgets should not exceed Rs. 5 lacs.

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2) However, the actual quantum of loan be arrived at after considering the


income criteria & repaying capacity as stated under point no.1 & 2 herein
below.
INCOME CRITERIA:
The maximum amount of loan should not exceed the following:
1) Salaried persons-2- times of gross annual income.
2) Other than salaried persons i.e. professionals / self-employed /
businesspersons etc., 3 times of net (average of last three years) annual
income plus depreciation claimed in individual capacity (and not the
depreciation claimed by the business unit). This may be verified from
income tax return and statement of income and expenditure.
Power with Regional Head
For Salaried Class 3 times of gross annual income
For others
5 times of average annual income

MARGIN:
25 % (Project cost will include estimated cost of repairing / renovation /
extension, cost of furniture / fixtures / furnishing / other gadgets and also the
stamp duty payable for creation of equitable mortgage). Maximum 5 % reduction
in margin for group borrowers.
SECURITIES:
Mortgage of the property to be repaired / renovated. Wherever the customer
desires that the Mortgage need not be insisted upon, the branch may as a
special case accept at its discretion, security of adequate value (10% higher
than the loan sanctioned in the form of life insurance policies, NSCs, KVPs, RBI
Bonds, Government promissory Notes, or such other security as may be deemed
adequate.

DOCUMENTATION:
Term loan agreement.
General form of Guarantee (LDOC 33) after incorporating additional
paragraph, wherever third party guarantee is stipulated.
Additions to be made in existing housing loan application.
Usual procedure for creation of equitable mortgage of the immovable
property being financed.

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REPAYMENT PERIOD:
Maximum 10 years by Equated Monthly installments. Moratorium period
maximum 6- months or one month after completion of repair/renovation work
whichever is earlier. Guidelines applicable for housing loan repayment period may
be referred for exceptions.
DISBURSEMENT OF LOAN:
In case of repair / extensiondirectly to the borrower subject to verification
of bills. For furniture / fixtures / furnishing and other gadgets directly to the
supplier.
DOCUMENTATION CHARGES:
Loan Limit
Up to Rs. 25000/Above Rs. 25000/- and up to Rs. 2 lacs
Above Rs. 2 lacs and up to Rs. 5 lacs
Above Rs. 5 lacs and up to Rs. 10 lacs

Charges (Service tax to be


included)
Nil
Rs. 200/Rs. 500/Rs. 1000/-

INSURANCE OF THE HOUSE:


Insurance modalities are similar to the housing loan product. Insurance is to be
extended only if the house is mortgaged with the Bank.

PRIORITY SECTOR CLASSIFICATION:


Loans for repairs to damaged houses up to Rs.2 lac in rural and semi urban
areas, and up to Rs. 5 lacs in urban areas, will be treated as priority sector
advances.
FREE CREDIT CARD:
Guidelines for issuing Credit Card are similar to housing loans to individuals.

CIRCULAR REFERENCE
BCC/BR/96/079 Dated 19.02.2004
BCC/BR/96/170 Dated 20.04.2005
BCC/RM/97/75 Dated 14.11.2005
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006

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BCC/BR/99/108 Dated 05.04.2007


BCC/BR/99/310 Dated 12.10.2007
BCC/BR/99/321 Dated 25.10.2007
BCC/BR/99/322 Dated 29.10.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009

Test your understandings.


Q1. The max moratorium which can be given in case of home improvement loan
is;
(a)
(b)
(c)
(d)
(e)

06 months
12 months
18 months
24 months
30 months

Q 2. The max period which can be given in home improvement loan for
repayment;
(a)
15 years
(b)
20years
(c)
25years
(d)
30 years
(e)
10years
Q3. The maximum amount of loan which can be sanctioned
improvement loan is
(a)
Rs.10lac
(b)
Rs.100lac
(c)
Rs.300lac
(d)
Rs.25lac
(e)
Rs.50lac
Q4. Home
(a)
(b)
(c)
(d)
(e)

improvement loan cannot be given to


HUFs
Staff
Director of a co
Partner of a firm
Both a & b.

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in home

Q5. For availing home improvement loan principal


or to be in business at least since ----------.
(a)
(b)
(c)
(d)
(e)

borrower must be employed

1 year
2 years
3 years
2.5 years
0 6 months

Answers of the questions


Q
A

1
a

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e

3
a

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4
e

5
c

BARODA ADDITIONAL ASSURED ADVANCE (AAA)


TYPE OF FACILITY:
Term Loan / Demand Loan (as per total period of loan).
Separate loan account is to be opened.
Borrowers name to be similar name/s as per housing loan.
PURPOSE OF LOAN:
Any purpose excluding speculative or illegal purpose.
ELIGIBILITY:
All Existing Home Loan Borrowers including NRIs /PIOs, Staff and ExStaff Members( availed home loan under public scheme as well as Staff
Housing Loans) whose Asset classification is Standard.
MAXIMUM AGE:
Age of the borrower + tenure of AAA loan should not exceed 65 years.
LIMIT:
Minimum: Rs.1.00lac
Maximum: Rs.25.00lac
Subject to 60% of Residual Value of House Property after deducting 150% of
outstanding loan amount of existing home Loan whichever is lower.
MARGIN: 40% of Residual Value of House Property after deducting 150% of
outstanding loan amount of Existing home Loan.
Repayment Capacity: Total deduction including repayments under various
existing loans and EMI for the proposed loan should not exceed 60 % on the
income.
REVIEW OF THE ACCOUNT:
Account to be reviewed annually. Due date to be synchronized with the due date
of housing loan account.
REPAYMENT:
Home Loan

Maximum 84 EMI but not to exceed maturity date of existing

Interest Rate : 1.50 % over base rate

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SECURITY:
Extension of the existing equitable mortgage of the housing loan. Personal
guarantee of third party if the same is stipulated in Housing loan.
PROCESSING CHARGES- 0.50% ( Minimum `5000/- ) + Service Tax
DOCUMENTS:
In case of Term Loan
Term Loan Agreement
General Form of Guarantee if guarantee is stipulated.

In case of Demand Loan


DP Note
Letter of installment with acceleration clause.
General form of Guarantee, if guarantee is stipulated.
VALUATION OF THE PROPERTY:
Valuation of the property at the time of considering AAA facility should not be
older than one year and it should be ensured that the value covers both i.e. the
outstanding under the Home loan as well as AAA facility sanctioned.
MAXIMUM TIMES THE LOAN CAN BE AVAILED:
This facility can be availed maximum five (05) times during entire tenure of
Home Loan provided previous AAA account has been adjusted.
INSURANCE OF HOUSE / FLAT:
Not required for AAA loan account, as the house mortgaged with the Bank is
already insured under housing Loan account. In case of foreclosure of housing
loan, the insurance of the property is to be obtained.
IN CASE OF HOUSING LOANS TAKEN OVER FROM OTHER BANKS /
HFCs:
Asset Classification of the account taken over must be Standard. There must
not be any over dues at the time of take over. Statement of account obtained
from the earlier bank / HFC should be in a position to clearly reveal Principal
repaid & it should be confirmed separately by writing the letter to the
concerned Bank / HFC. Valuation of the property should be done afresh for

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granting Housing Loan. Other guidelines regarding sanction of Housing Loans /


Insurance / Recovery of charges etc. to be followed.
Test your understanding
Q1. . The eligible limit for Baroda additional assured advance is _______ of
residual Value of house property after deducting _______ of O/S in housing
loan account.
a) 60%,150%
b) 50%,100%
c) 40%,75%
d) 30%,150%
e) 20%,125%
Q 2. The minimum amount which can be availed in AAA
LOAN is ;
(a)
Rs 0.25 lacs
(b)
Rs.0.50lac
(c)
Rs. 1.00lac
(d)
Rs.2.00lac
(e)
Rs.5.00lac
Q3. The maximum amount of loan which can be sanctioned
in AAA loan is Rs.-------.
(a)
10lac
(b)
25lac
(c)
20lac
(d)
50lac
(e)
90% of principal repaid
Q4.The max repayment period in AAA loan is ;
(a)
5 years
(b)
4 years
(c)
3 years
(d)
7 years
(e)
It can go up to retirement age even if he is of the age of 40
years.

Q5. Repayment capacity in AAA LOAN to ascertained at


(a)
40%
(b)
50%

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Q
A

(c)
(d)
(e)

60 %
70%
As per norms of housing loan.

1
a

2
c

3
b

4
d

Baroda Home loan to N.R.I/P.I.O/O.C.I


Purpose:

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5
c

Purchase of new residential house / flat


Construction of new dwelling unit
Purchase of old dwelling unit ( not more than 15 years old )
Purchase of plot of land, subject to the condition that a house will be
constructed thereon within -3- years from the date of purchase of plot.
Repayment of loan already availed from any other Bank / HFC
For repair / renovation / extension of existing house
For purchasing / constructing second house / flat for the purpose of self
occupation.
Loan shall be considered for residential properties situated in India only

Eligibility:

Non Resident Indians (NRIs) holding Indian passport or Persons of


Indian origin (PIOs) holding foreign passport, singly or jointly.
For this purpose 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 ) if
He at any time held Indian Passport or
He or either of his parents or any of his grandparents was a citizen
of India by virtue of the constitution of India or the Citizenship
Act 1955, or
The person is a spouse of an Indian citizen or a person referred to
in sub clause (a) or (b) above.

Principal applicant should be having a regular job abroad in a reputed


Indian / foreign company, organization or government department holding
a valid job contract / work permit for the minimum past 2 years,

Must be employed / self-employed or having a business unit and staying


abroad at least for 2 years.

Must have minimum gross annual income equivalent to Rs. 5 lacs per annum

Minimum age must be 21 years. However, the minimum age of co-borrower


can be 18 years.

Age of the borrower plus repayment period should not be beyond


retirement age or 65 years whichever is earlier.
Income Criteria:
The maximum amount of loan should not exceed the following :
In case of salaried persons -48- times of monthly income. Income may
include incentive, commission / bonus etc. paid by the employer during the
period.
In case of others viz. professionals /self-employed / business persons
etc. 04 times of average (last two years) annual income.

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Margin:

20% in all the cases

Repaying Capacity:
Total deductions including proposed EMI should not exceed 60 % of the
gross income of the borrower.
Repayment Period: 15 years with max moratorium of
12 months.
Rate of Interest :As in Case of home loan
Security /Documents: As in case of home loan
Guidelines if documents are to be executed by P.O.A:
R.H not below D.G.M may authorize the branches subject to
verification by our banks legal officers.
The principal to give a single letter of confirmation, which confirms
that the documents executed by his attorney are binding upon and
thus valid, subsisting & enforceable.
P.O.A in favor of agents/attorney is unconditional duly stamped and is
in force as on date.
P.O.A executed overseas should be done only in office of the Indian
embassies abroad and should be got attested by the office of Indian
embassy.
And those executed in India should be done only in the office of the
Registrar of Assurances.
The P.O.A executed in presence of Notary Public/Magistrate either in
India or abroad not to be entertained.
The P.O.A out side India are to be stamped ad valorem within 90 days
of arrival into the country.
Instead of a third party ;agent to be a close relative of principal,e.g
husband,wife,son,daughter,father,mother,father in law,mother in
law,brother,sister,daughter in law,son in law,brother in law,& sister in
law.
Efforts to be taken to include agents as guarantors.
Refer circular no BCC: Br:103:171 DT 17TH June 11

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Test your understandings


Q1. For becoming eligible for home loan a N.R.I must have been employed
overseas or having a business unit at abroad since last ------- years
(a)
(b)
(c)
(d)
(e)

1 year
3 years
2years
4 years
No such condition

Q2. A N.R.I can apply for home loan if he has income at least Rs.----------lacs
p.a.
(a)
2
(b)
3
(c)
4
(d)
5
(e)
1
Q3. The maximum repayment period which can be given to
N.R.I for home loan is ----------- years.
(a)
25
(b)
20
(c)
15
(d)
30
(e)
10
Q4. The income criteria for calculation of outer limit of housing loan in case of
N.R.I(salaried) is------------subject to comfortable repayment capacity.
(a)
54 times of gross monthly income
(b)
48 ------------do-----------------(c)
36 ------------do-----------------(d)
25------------do------------------(e)
As per norms of home loan to residents.

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Q5. If documents are to be executed by an agent of N.R.I the P.O.A outside


India is to be stamped ad valorem within ---------- days of arrival into the
country.
(a)
(b)
(c)
(d)
(e)

50
120
90
30
Not required.

Answers of the questions

Q
A

1
c

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d

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c

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4
b

5
c

BARODA ASHRAY
(Reverse Mortgage Loan)
PURPOSE:
To supplement the cash flow stream of senior citizens in order to address their
financial needs by way of mortgage of self-occupied property (house / flat).
TYPE OF FACILITY:
Combination of monthly annuity payments, and Lump sum payments for upgradation/ renovation/home improvement/ extension of residential property.
Lump sum payments for medical / other emergencies/ exigencies of the family
Lump sum payment will be subject to maximum 10% of the total
loan limit assessed.
NATURE OF FACILITY: Term Loan.
AREA COVERAGE: All domestic branches.
ELIGIBILITY:
1.
Should be Senior Citizen of India, above 60 years of age.
2.
Married couples will be eligible as joint borrowers provided one of them is
above 60 years of age and spouse is not below 55 years of age at the time
of application.
3.
Should be the owner of a residential property (house or flat) located in
India in his/her own name.
4.
Residential property should be used as permanent primary residence
(fully self occupied property).
Ex-staff members shall also be eligible to avail loan under the product.
ELIGIBLE END USE OF FUNDS:
1.
Up gradation, renovation and extension of residential property.
2.
Home improvement, maintenance
3.
Insurance of residential property.
4.
Medical, emergency expenditure for maintenance of family.
5.
For supplementing pension / other income.
6.
Repayment of an existing loan taken for the residential property to be
mortgaged.

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7.
Any other genuine need.
Loan amount will not be used for speculative, trading purposes.
MAXIMUM AMOUNT:
The maximum loan amount including interest for entire life shall be restricted
to Rs. 1 crore, subject to the margin of 20% on present market value of the
property.
As an exigency arrangement, the borrowers may be counseled to keep 5 % of
limit assessed for medical / any other unforeseen financial requirements in
entire life span. In case of any lump sum payment, the annuity needs to be
recomputed after giving effect of the interest on such amount.
However, annuity will be computed considering the life expectancy of 80 years
(treating the loan tenure of 20 years), but initially payments shall be made for
15 years and if any of the borrowers survives, the loan may further be
extended for next 5 years and accordingly, annuity may be disbursed for next 5
years.
RIGHT TO RESCISSION:
The borrower(s) shall be given 7 business days to cancel the transaction, the
right of rescission. If the borrower(s) does not intend to avail the loan,
processing charges may be waived.
However, if loan amount has been disbursed, the entire loan amount will need to
be repaid along with applicable interest.
DISBURSEMENT / TENOR OF LOAN:
1.
The amount will be directly disbursed to the borrower/s in monthly /
quarterly / half-yearly / annual installments.
2.
If loan is also considered for repayment of existing loan raised on the
security of the property from any institution, the payment of such
amount shall be directly paid to the Bank / FI concerned.
3.
Directly pay the property tax or hazard insurance
premium.
4.
Lump-sum payment to the borrower/s directly on account of illness of the
borrower / family member, home improvement, maintenance, up-gradation
of house and any other exigency requirements.
OPTION TO ADJUST PAYMENTS:
The Bank shall have the option to revise periodic / lump sum amount at the
interval of every 5 years based on valuation of the property.
Borrower shall be provided with an option to accept such revised terms and
conditions for furtherance of the loan.

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REPAYMENT OF LOAN:
The loan shall become due and payable only when the last surviving borrower
dies or would like to sell the home / permanently moves out of the home for
aged care to an institution or relatives.
Permanent move shall generally mean that neither the borrower nor any coborrower would be living in the house continuously for one year or do not
intend to live continuously.
1.
The loan will, as such, become due for recovery and payable after death
of the last surviving spouse.
2.
Settlement of loan, along with accumulated interest, to be met by the
proceeds received out of sale of residential property.
3.
The borrower(s) or his/her/their estate shall be provided with the first
right to settle the loan along with accumulated interest, without sale of
property. A reasonable period of 2 months may be provided when
repayment is triggered, for house to be sold.
4.
Surplus if any, remaining after settlement of the loan with accrued
interest, shall be passed on to the estate of the borrower.
FORECLOSURE:
The loan shall be liable for foreclosure due to occurrence of the following
events of default.
1.
If the borrower has not stayed in the property for a continuous period of
one year.
2.
If the borrower fails to pay property taxes or maintain and repair the
residential property or fails to keep the home insured, the Bank reserves
the right to insist on repayment of loan bringing the residential property
to sale and utilizing the sale proceeds to meet the outstanding balance of
principal and interest.
3.
If borrower(s) declare/s him / her / themselves
bankrupt.
4.
If the residential property so mortgaged to the Bank is donated or
abandoned by the borrower(s).
5.
If the borrower(s) effect changes in the residential property that affect
the security of the loan for the Bank viz. renting out part or all of the
house; adding a new owner to the houses title; changing the houses
zoning classification; or creating further encumbrance on the property
either by way taking out new debt against the residential property or
alienating the interest by way of a gift or will.
6.
Due to perpetration of fraud or misrepresentation by
the borrower(s).

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7.
8.

If the government under statutory provisions, seeks to acquiring the


residential property for public use.
If the government condemns the residential property (for example, for
health or safety reasons).

SECURITY:
Simple / Equitable mortgage of the Residential property.
Commercial property will not be taken as a security under the product.
TENURE: 15 years. The tenure may further be extended till survival of the
borrower/s subject to the advance value of the property.
PROCESSING CHARGES:
Asper Circular No.BCC/BR/99/321 dated 25.10.2007
VALUATION OF PROPERTY:
The property is to be valued by Banks / Government approved valuer as per
extant guidelines, at the time of considering the facility.
Subsequently, the property to be revalued at the interval of every five
years.
AGE OF BUILDING TO BE MORTGAGED:
1.
The age of building should not exceed 40 years.
2.
Building more than 40 years old may be accepted as security, subject to
approval of Regional Head, who will ascertain structural soundness of the
building by obtaining opinion and certificate from approved engineer,
about structural soundness of the building and its residual life.
INSURANCE:
Insurance of the residential property mortgaged (cost to be borne by
borrower).
MAIN DOCUMENTS REQUIRED TO BE SUBMITTED BY THE APPLICANT:
1.
Documents relating to KYC norms.
2.
Original title deeds of the property offered for mortgage.
3.
Latest maintenance, Water Tax, Municipal Tax and any other such taxes
paid receipt (No taxes should be in arrear, while considering the loan).
4.
No objection letter from Co-Op Society.
5.
Permission to create Equitable Mortgage from society
6.
Confirmation of society that Banks lien on society records is noted.

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DOCUMENTATION:
1.
Loan agreement.
2.
Deed of Simple Mortgage / Equitable Mortgage.
3.
Declaration from the Borrower / s.
LEGAL OPINION ABOUT TITLE DEEDS:
1.
Legal opinion to be obtained from Banks approved advocate.
2.
Actual Legal fees to be borne by the borrower.
OTHER CONDITIONS:
1.
The incumbent/s should have clear title indicating the
ownership of the property.
2.
In case of lease hold property, residual period of lease should be at least
equal or more of the difference of present age of the borrower/s and
normal life expectancy age of 80 years plus 5 years.
3.
In case of income tax payee, it is to be ensured that no income tax is in
arrear at the time of sanction of the loan, once in a year thereafter.
4.
Application form as per Circular.
5.
No pre payment charges for full / partial pre-payment of the loan at any
time.
CIRCULAR REFERENCE
BCC:BR:99:346 Dated 17.11.2007
BCC/BR/101/15 Dated 09.01.2009

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Test your understandings


Q.1The minimum margin which is kept on value of property in case of Baroda
Ashray is.
a) 20%
b) 25%
c) 50%
d) 40%
e) 15%
Q2. The age of building while considering Baroda Ashray advance not to
exceed-----------years.
(a)
25
(b)
30
(c)
20
(d)
10
(e)
40
Q3. The minimum age of borrower for availing Baroda Ashray is to be
----------years
(a)
55
(b)
65
(c)
60
(d)
70
(e)
Above 60

Q4. The maximum amount of loan including interest which can be given under
Baroda Ashray scheme is Rs.--------(a)
1 crore
(b)
2 crores
(c)
50lacs
(d)
25 lacs
(e)
3 crores

Q5. In Baroda Ashray after giving loan the property is to be revalued at the
interval of every --------years during entire period of loan.
(a)
2
(b)
3
(c)
1
(d)
5
(e)
4

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1
a

Q
A

2
e

3
e

4
a

5
d

BARODA MOTGAGE LOAN to Resident Indians/N.R.I


PURPOSE:

For any legitimate purpose except for speculations.(Proposals from


Persons involved in Real estate developments, property dealers/brokers,
share/stock brokers not to be considered)

TYPE OF FACILITY:

Overdraft with reduction of limit in a phased manner.


Term Loan

ELIGIBILITY:

Salaried Employees / Professional, Self Employed & Others who are


income tax assessee for last 3 years.
Age : Minimum : 21 years. Maximum : 60 years
The Customer age + Overdraft / Loan tenure should not exceed 65 years.
Minimum gross annual income : Rs. 60,000/Proposals from persons involved in real estate Developments, property
dealers/Brokers, share/stock Brokers and persons engaged in speculative
activities should not be considered
N.R.Is are not eligible for overdraft.

LIMIT:
(Subject to income criteria, repayment capacity& advance value of security
Offered)

Minimum
:
Rs. 1.00 lac

Maximum
:

Rural Branches
:
Rs. 5 lacs

All other branches


:
Rs. 100 lacs

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(Subject to income criteria, repayment capacity and advance value of the


property offered as security the value of immovable property to be
considered for calculating the margin should be Market value or the Distress
sale value, whichever is lower)
Note: For loan to Professionals maximum limit shall be
Rs. 25 lacs.

INCOME CRITERIA:

Salaried Class
:
30times of Gross monthly income
Others
:
3 times of average ( last 3 years ) annual
income
Income of all joint owners of the property who are co-borrowers can be
clubbed.
For agriculturists income certificate from appropriate revenue authority
to be obtained
Future income is not to be considered.
Co-borrower: The facility can be considered to an earning member /
members of a family against the property standing in the name of any
member / members of the family. Members of family will comprise of
spouse, father, mother, son/s, brother/s and brothers wives and
daughter/s (subject to the condition that they are living in the family
jointly, this is to be ascertained through interview of the applicants). In
case of Loan to Professionals 20% of Average annual Business
Turnover / Professional receipt.

REPAYMENT CAPACITY:

The income of the spouse may be considered for repayment also if he /


she is a co-borrower.
Total deductions should not exceed 60% of the gross income (including
installment / repayments towards proposed facility).
Overdraft facility should also be assessed as per guidelines of term loan

MARGIN:

50 % of the market value or the distress sale value, (whichever is lower)


of the immovable property proposed to secure the advance. ( w.e.f.
01.06.09

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SECURITY:

Equitable mortgage of Un-encumbered residential or commercial property


in the name of the applicant/s.
Loan / Overdraft against Tenanted property should not be considered
except in case where the property is given on lease to PSU, Reputed Govt.
/ Semi Govt. Enterprises, Large Corporate, Banks, Financial Institutions &
Insurance companies.
Equitable mortgage of 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.

THIRD PARTY GUARANTEE:

Up to Rs. 10 Lacs Guarantee may not be insisted upon


Over Rs. 10 Lacs Third party guarantee of an individual having
adequate worth

REPAYMENT PERIOD:
Overdraft : Maximum 10 years (Methodology would be as under)
Reduction in operative limit proportionately (Minimum 10 % by end of
each year, synchronizing with review of the account).
Interest to be recovered separately as & when applied in the account.
[Facility may be continued without reduction, subject to the condition that
minimum annual turnover in account is at least 25 % of the limit sanctioned
and conduct of the account is satisfactory]

Loan :

Maximum 84 months in equal monthly installments (EMI)


Maximum moratorium 3 months
Interest to be recovered separately as & when applied in the account
during moratorium period.
For Agriculturists to be fixed as annual / half yearly repayment for
principal and interest considering the harvesting pattern and / or
other sources of income.
PERIOD OF FACILITY:

12 months subject to annual review.

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At the time of review the limit is to be reduced as per repayment


schedule.

PROCESSING & OTHER CHARGES:

LOAN
1 % of loan amount subject to :
Minimum
: Rs. 1000/- + ST
Maximum
: Rs. 50000/- + ST

OVERDRAFT
0.35 % of loan amount
Minimum
: Rs. 1000/- + ST
Maximum
: Rs 25000.00 + ST

Commitment charges @ 0.50 % p.a. in case of OD under the scheme where


limit is Rs. 500 lacs & above and average quarterly utilization is < 75 %
[BCC/BR/100/154 dated 06.06.2008]
VALUATION OF PROPERTY:

For property acquired within 5 years of sanction of loan, amount of


registered sale deed may be taken as valuation.
In other cases, the valuation of property should be done by our Banks
approved valuer or Government approved valuer as per extant guidelines
at the time of considering the facility.
The age of building should not exceed 25 years.
Building more than 25 years old may be accepted as security, subject to
approval of Regional Head, who will ascertain structural soundness of the
building by obtaining opinion and certificate from approved engineer,
about structural soundness of the building and its residual life. The
residual life of the building should be at least 5 years more than the term
of the loan / overdraft.

INSURANCE:

Insurance of the property mortgaged ( cost be borne by borrower ) for


full value excluding :

Cost of Land in case of constructed property

The plot of Land

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LENDING POWERS:
Sanctioning authorities up to Grade / Scale III are authorized to
sanction facilities up to Rs. 25 lacs and Authorities under SMG/S IV are
authorized to exercise normal DLPs for sanction of limits under the
scheme.

ACTIVITY CLEARANCE :

FREE

In order to have a check on the quality of financing now the branches


w.e.f. 17 August, 2009 will have to seek prior activity clearance from
their controlling authorities before considering any new or review with
increase proposal as under :
Regional Head - For facilty up to Rs. 100 lacs
Zonal Head
- For facility above Rs.100 lacs
U.R.L.F
No Such clearance requires.
(Fresh as well as with increase)
CREDIT CARD:

Above Rs. 2 lacs and up to Rs. 5 lacs


Above Rs. 5 lacs

:Paras International
:Exclusive

MAIN DOCUMENTS REQUIRED TO BE SUBMITTED BY THE APPLICANT:

I.T Returns for past 3 years


In case the overdraft amount exceeds Rs. 5 lacs copy of Latest Income
Tax Assessment Order.
Form No 16 along with salary certificate from the Employer.
Original title deeds of the property offered for mortgage
Latest maintenance, Water Tax, Municipal Tax and any other such taxes
paid receipt.
Non encumbrance letter from Co-op Society.
Permission to create Equitable Mortgage from society.
Confirmation of society that Banks lien on society records is noted.
Last 6 months statement of accounts of Main Bank account in case main
account is not with the Branch.

LEGAL OPINION ABOUT TITLE DEEDS:

Legal opinion to be obtained from Banks approved advocate.

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Actual Legal fees to be borne by the borrower. However, Branches may


negotiate with the local empanelled advocates to contain the fee to a
maximum of Rs. 300/- per case.

TAKE OVER OF MORTGAGE LOAN ACCOUNTS FROM OTHER BANKS:

Mortgage loan taken from other banks / financial institutions can be


taken over by following the extant guidelines in respect of takeover of
borrowal accounts

OTHER CONDITIONS:

Penal interest 2 % p.a. on overdue amount


Legal opinion to be obtained from Banks approved advocate
Actual Legal fees to be borne by the borrower.
No penalty for pre mature payment
With a view to take care of the periodical reduction in the operative
limit, following clause be added in the loan application and sanction letter
in case of overdraft facility :
The Bank shall have the right to progressively reduce the limit of
overdraft sanctioned hereby every year / month from time to time during
the availment of the OD limit. However, it is agreed and understood that
such commitment for progressive reduction in the overdraft limit is and
will be without prejudice to the rights of the Bank to call for accelerate
and demand repayment of entire outstanding amount in overdraft limit at
any time and from time to time.
It has been decided by our Bank to levy the charges for deviations
(financial / non financial) @ Rs. 3000/- per deviation with maximum of Rs.
10,000/-.

POWER OF DEVIATION:
Powers of Financial Deviations which have a direct impact on Profit & Loss
A/C of Bank shall not be exercised below the level of BCC. However non
financial deviations may be considered as per powers delegated.

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Test your Understandings


Q1. Which statement among the below is not correct under the reference of
Baroda Advance Ag property.
(a)
Director of a co can avail it
(b)
Partner of a partnership firm may avail it
(c)
A share broker can avail it
(d)
NRI may also avail overdraft
(e)
Both c & d
Q2. Minimum amount that a rural branch can sanction under Baroda advance
against property is Rs. -------------(a)
1.00lac
(b)
2.00lac
(c)
0.25lac
(d)
5.00lac
(e)
0.50lac
Q3. Which is not true in Baroda Mortgage loan
(a)
A person below income 60000p.a may avail this facility
(b)
Activity clearance is required
(c)
U.R.L.Fs do not require activity clearance
(d)
Gurantee up to Rs.10.00lac not required
(e)
An officer up to scale III may sanction up to Rs. 25.00lacs
Q4. Maximum moratorium which can be given in Baroda Mortgage loan
(a)
06 months
(b)
12 months
(c)
03 months
(d)
18 months
(e)
24 months
Q5. While considering Baroda Mortgage loan the age of building should not
exceed ----------years in general
(a)
25
(b)
20
(c)
10
(d)
40
(e)
15

Answers of the questions


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Q
A

1
c

2
a

3
a

4
c

5
a

LOAN AGAINST FUTURE RENT RECEIVABLES


PURPOSE:
General Business / Personal Needs
(Except for speculative or any other activity restricted by RBI / Govt)
ELIGIBILITY:
Owners who have let out or propose to let out their premises Wherein
Bank has considered loan also against uncertain period of lease to reputed
Companies

MNCs

Banks

Multinationals

Public

Sector

Undertakings /Established Commercial Organizations, Institutions /


Govt., Quasi Govt. Departments etc.

And lords of Bank of Baroda branch / office premises / residential flats,


houses leased out to Bank of Baroda.

Note: Exposure must be under commercial real estate segment as per extant
guidelines of RBI / our Bank from time to time.
LIMIT & MARGIN:
55 % of rent (net of TDS, advance rent, security deposit) due and
receivables, for the unexpired certain period of lease and uncertain
period of lease ( optional period ) subject to :
Minimum amount of Loan: ` 25 Lac
For Landlord of Bank of Baroda Premises: No minimum limit
Maximum exposure for Single Borrower: ` 200 crores
Maximum exposure for Group Borrower: ` 250 crores
Maximum eligible limit to be fixed considering the unexpired certain lease
period and uncertain period of lease (Total option & certain period of maximum
10 years)
For the period of computation of quantum of rent receivables, the option period
to be taken into consideration should not exceed 1/3rd of the certain period.
REPAYMENT:

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Loan is to be repaid in Equated Monthly Installments (EMI) with a maximum


period of 10 years or unexpired certain period of lease and optional period of
maximum next 10 years, whichever is less. The maximum rental period (Including
the certain and optional period) should be 10 years.
Note:
Cash flow generation of the borrower is to be kept in mind, while proposing
repayment schedule.
Ballooning / Accelerated repayment, if there is increase in lease rental during
the tenor of loan.
SECURITY:
For Loans up to Rs 5.00 lacs Assignment of future rent receivables and
third party guarantee acceptable to the Bank. Such loans should be classified as
UNSECURED and sanction should be as per discretionary lending powers for
unsecured advances.
For Loans above Rs 5.00 Lacs
In addition to the assignment of future rent receivables, mortgage of the
leased properties plus any other acceptable security, value of which should be
at least 1.25 times of the loan amount. [The valuation should be as per the
current market price of the property, which is to be mortgaged, as assessed by
a certified valuer].
Tripartite agreement amongst the Bank, the borrower and the tenant / lessee
providing for payment of the rent directly to the Bank
Note: In normal circumstances, mortgage of lease hold property (whose future
rent is assigned) will be taken as security.
Authority for allowing deviations: if for exceptional reasons mortgage of
leasehold property (whose future rent is assigned) is not available as security,
other acceptable security may be taken with the approval of next higher
authority, the value of which should be at least 1.25 time of the loan amount.
Authority for allowing deviation ; Wherever Tripartite agreement is not
feasible such as in the case of Government Department / Public Sector Units /
Multinational Companies suitable letter from borrower for collecting rent
directly to be obtained and lodged with lessee and undertaking from the lessee
to pay such rent direct to Bank should be obtained.
LEASE AGREEMENT:
Loan should be given only when properties are leased under registered lease
deeds. (Registration of lease deeds is compulsory)
In case rent agreement is on leave and license basis, the agreement should be
vetted by Zonal Legal Cell and their suggestions, if any, to be incorporated in
the final leave and license agreement to be executed and registered.
PROCESSING FEE (INCL. DOCUMENTATION FEE):
Upto Rs 10 Crores: 0.50% of loan amount subject to Maximum of Rs 5 Lacs.

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Above Rs 10 Crores: 0.50% of loan amount subject to maximum of Rs 50 Lacs.


The above charges are to be levied once only at the time of sanction and are
exclusive of service tax.
No processing charges for review of facility unless there is change in terms of
original sanction.

Actual stamp charges, valuation charges of Immovable property, insurance


premium & legal opinion fee will be borne by the borrower and has to be
recovered by the branches upfront.
UPFRONT FEE:
0.50% of the loan amount subject to maximum of ` 50 Lacs at the time of
initial sanction.
OTHER CONDITIONS:
Certified copies of Lease Deed, Rent Agreement under Leave and
License Scheme, Tripartite agreement, Letter of authority and
undertaking from tenant / lessee to collect rent directly by the Bank are
to be got vetted by the Legal Department / Banks Legal Advisor beside
scrutiny of title to property for 30 years by Banks Legal advisor to be
obtained .

Zonal Authorities are empowered to relax rate of interest up to BPLR for


the proposal falling up to their powers.

Insurance for full market value of the property to be mortgaged with


Bank Clause.

Takeover norms given in Domestic Loan Policy are not applicable for
takeover of loan A/Cs of other Banks for this scheme. However following
norms should be should be strictly adhered :

Accounts with existing lenders should be under the category of


Standard Assets

Satisfactory report from the existing Bank / FI and / or satisfactory


conduct of account as per latest statement of account.

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There should not have been any reschedulement / restructuring in the


account during last two years.

Credit rating is to be carried out as per the extant guidelines of the


Bank.

Activity clearance is required and Zonal Head is authorized up to their


DLP and likewise GM (Corporate) / ED/CMD for all other cases within
their DLPs.

Minimum FACR should be 1.25 times.

REFERENCE CIRCULAR
BCC/BR/102/143 24.05.2010 Master Circular
Test your understandings
Q.1 Minimum amount of loan under future rent receivable scheme which can be
sanctioned to a land lord of Bank of Baroda premises.
(a)
Rs.25.00lacs
(b)
Rs.10.00lacs
(c)
Rs.05.00lacs
(d)
Rs.15.00lacs
(e)
No minimum limit
Q2. Minimum amount of loan which can be sanctioned to borrower other than
BOB landlord, under future rent receivable scheme.
(a)
Rs.25.00lacs
(b)
Rs.10.00lacs
(c)
Rs.05.00lacs
(d)
Rs.15.00lacs
(e)
No minimum limit
Q3. Maximum amount of loan which can be sanctioned to any single borrower
Under future rent receivable scheme.
(a)
Rs.100.00lacs
(b)
Rs.150.00lacs
(c)
Rs.200.00crores
(d)
Rs.250.00crores
(e)
No max limit
Q4. Maximum amount of loan which can be sanctioned to any group borrower
Under future rent receivable scheme.
(a)
Rs.100.00lacs
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(b)
Rs.150.00lacs
(c)
Rs.200.00crores
(d)
Rs.250.00crores
(e)
No max limit
Q5.Amount of loan is considered @ -----------% of rent (net of TDS, advance
rent, security deposit) due and receivables, for the unexpired certain period of
lease and uncertain period of lease ( optional period ) subject to maximum limits
of scheme of Future rent receivable.
(a)
(b)
(c)
(d)
(e)

50
40
45
55
60

Answers of the questions :


Q
A

1
e

2
a

3
c

4
d

5
d

BARODA TRADERS LOAN


(Previously named as BOBVYAPAAR)
TYPE OF FACILITY: Overdraft / Loan
ELIGIBILITY:
All persons engaged in trade of any commodity / goods not prohibited by law or
opposed to public interest. Individuals, Firms, Pvt. Ltd. Co; Proprietorship and
partnership concerns engaged in trade, Registered Co-op. Societies are also
eligible.

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The credit facility may be considered for traders who are established in
their line of business preferably for 2 years.
Trading units established by our existing customers with satisfactory
dealings or near relatives, even if these are established for less than 2
years.
Traders units of non-customers having less than 2 years establishment, with
the prior approval of Regional authorities.
HUFs & Public limit cos are not eligible.
PURPOSE:
a) Working capital requirements.
b)Development of shop (e.g. purchase of equipment, P.C., air-conditioner,
furniture etc. but not for purchase of shop), for need based requirements
subject to a maximum of 25% of the working capital limit sanctioned.
c) Non fund based facilities like BG & LC within the limit based on value of
securities.
AMOUNT:
Minimum Rs. 25,000/Maximum Rs. 200 Lacs.
ASSESSMENT OF WORKING CAPITAL:
Advance value of collateral security Or
20% of the projected annual sales subject to verification of sales tax
returns of previous year, Which ever is less.
MARGIN:

10% on Banks own FDR.

15% on surrender value of LIC policies, NSCs, and Govt. Bonds.

50% on approved shares / bonds

40% on immovable property as per recent valuation report.


REPAYMENT:
Overdraft: 12 months subject to annual review.
Loan: Maximum 60 months (depending on repayment capacity)
1. Age of property should not be more than 25 years old. However for
properties, which are older than 20 years but not more than 25 years,
branch is to ascertain structural soundness of the property by obtaining
an approved engineer's certificate, certifying that structural soundness
as well as residual life of the building should be at least 5 years more
than the repayment period of the loan.

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2. For dwelling units which are older than 25 years, Regional Head may
authorize such cases on selective basis, subject to, ascertaining
structural soundness of the building by obtaining an approved engineers
certificate, certifying the structural soundness as well as residual life of
the building should be at least five years more than the repayment period
of the loan.
3. As regard overdraft facility secured by immovable property.
- Building less than 25 years old guidelines applicable to general
advances to be followed.
- Older than 25 years - the branch will be required to carry out
inspection of the property every year at the time of review of facility
and obtain structural soundness report from architect every 3rd year
along with valuation of property.
- In case, any defect is observed during inspection of the security or in
architect's report, branch will be required to ensure substitution of
the security having requisite value immediately or ensure liquidation of
the facility at the earliest but not later than 12 months period in any
case.
SECURITY / DOCUMENTATION:
1. D. P. Note
2. Letter of Continuing Security
3. Hypothecation of Goods (Where ever applicable)
4. General Form of Guarantee in case the immovable property charged to bank
is in the name of 3rd party.
5. Undertaking from borrower to exclusively deal with our Bank. Tangible
collateral securities in the form of mortgage of land (not agricultural
land) and buildings, NSCs, our Banks FDRs, Govt. Bonds, LIC policies
(surrender value), approved bonds. Valuation of property to be done by
Bank/Govt. approved valuer and valuation to be done once in 3 years.
6. Property to be mortgaged must be in the name of either:- Borrower
Proprietor, Partner, Director
Close relative of borrower who should stand guarantor.
Third party property provided credit facility is for Rs. 1 lac and above
Credit Rating: Credit Rating is to be done at the time of sanction / review of
the account. Fresh advance can be granted only to the applicants securing
minimum credit rating of BTL-6 under the new Credit Rating Model applicable
for limits upto Rs.200 lacs
hosted on LAPS.Facilities of more than Rs.200
lacs shall continue tobe rated on BOBRAM.

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(New Credit rating sheet is to be used as per circular no BCC:BR:104:404 dt


10th Nov 2012) )
Take Over Norms: Current Ration Min 1.17:1;
Debt Equity Ratio:
Max;6:1
Besides
other
norms
as
per
circular
no
BCC:Br:
104:605
th
dt 27 Aug 2012
Rate Of Interest: Base Rate + 3%
Processing /Service Charges: Fund Base Limit : Unified service Charges:
0.35% Minimum- Rs.1000/- + Service tax. ( but no maximum
Limit
Chargeable at the time of fresh sanction as well as at the time of each
review
Non funded limits : As per extant guidelines
OTHER TERMS & CONDITIONS:
1. Undertaking from the borrower exclusively to deal with our bank.
2. Stock statements to be obtained only once in a year, i.e. as of 28th February
on or before 10th of March and inspection be conducted and report to be
kept on record.
3. Credit rating required as per extant guidelines.
4. Declaration on annual sales, supported by Returns / Assessment of Sales Tax
to be obtained and kept on record at the time of annual review. Copy of
latest sales tax-returns to be obtained with application form, in case of
units having sales of more than Rs. 40 lacs per year.
5. Obtaining insurance cover may not be a condition for sanction of the facility.
However branch may counsel their borrowers to have the stock insured in
their own interest at their cost.
6. Inspection to be conducted once a year.
7. Obtaining of Balance Sheet and P/L account is dispersed with. However,
declarations of annual sales supported by Returns / assessment on sales
tax / income tax, etc. be obtained and kept on record at the time of
annual review.
8. Pre-sanction inspection is to be carried out and report to be kept on record.
9. Parties to undertake that they do not owe any overdue statutory dues like
Sale-Tax, Income Tax, Corporation Tax, Professional- Tax, etc. And have
obtained/renewed licenses from concerned authorities required for
trading in the merchandise/goods.
10. Valuation of immovable property offered as security is to be done by Bank /
Govt. approved valuer. Valuation is to be done once in 3 years.
11. Branch to endeavour to display Banks name as financier from publicity angle.

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Imp Note: Only two retail loans can be considered against property charged to
the Bank exclusively for Retail Loans, subject to availability of adequate
residual value as advised vide Circular No. BCC: RM: 97/75 dated
14.11.2005.However powers for allowing second loan rests with the
Regional Manager.

Test your understandings


Q1. For considering Baroda Traders scheme the borrower must be doing
business since last ---------------years in general.
(a)
03 years
(b)
02years
(c)
0.5years
(d)
01 year
(e)
1.5 years
Q2. The minimum amount of loan which can be sanctioned under Baroda Traders
scheme
(a)
Rs.1.00lac
(b)
Rs.2.00lacs
(c)
Rs.0.25lacs
(d)
Rs.5.00lacs
(e)
Rs.3.00lacs
Q3. The unit inspection is to be done as per following norms in standard account
of Baroda Traders .
(a)
(b)
(c)
(d)
(e)

As per credit rating


Bi monthly basis
Six monthly basis
Quarterly basis
Once in a year.

Q4. While taking over a Baroda Traders loan the DE ratio


to be at least
(a)
(b)

4.5:1
3:1

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(c)
(d)
(e)

5:1
6:1
4:1

Q5. Maximum laon which can be considered under Baroda traders scheme
(a)
(b)
(c)
(d)
(e)

Rs.200.00lacs
Rs.100.00lacs
Rs 250.00lacs
Rs.50.00lacs
Rs.300.00lacs

Answers of the questions


Q
A

1
b

2
c

3
e

4
d

5
a

BARODA TRADERS LOAN AGAINST GOLD ORNAMENTS / JEWELLERY

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Target Group:
All Individuals, including ex- Staff members( but existing staff members are
not eligible), Joint borrowers (closely related), and Proprietorship /partnership
firms engaged in trading and having license, wherever required, for the same
from competent authority.
Other conditions of our product Baroda Traders Loan shall apply.
Eligibility:
20% of the projected annual turnover or 75% of the market value of the gold
ornaments assessed by Banks approved assayer, offered as security
Purpose:
Working Capital Requirement and /or purchase of equipments for development
of Shop e.g. Computer, Furniture etc
Nature of facility: Loan / Overdraft,
Limit :
Minimum Rs. 0.50 lac Maximum Rs. 2.00 lac
However max limit is to be fixed on the basis of per gram advance value of Gold
as circulated by our bank on quarterly basis
Margin:
25% on the present market value of the Gold Ornaments assessed by the Banks
approved assayer. Ornaments containing gems and stones will not be considered
as security for the purpose.
Rate of interest:
Base Rate plus 3% p.a. with monthly rests
Period:
Loan: for maximum of 60 months
Overdrafts: for 12 months subject to annual review
Unified Processing charges:
0.50% of loan limit minimum Rs.250/- plus service tax.
Documents /Papers:
1. Application Form meant for Baroda Traders Loan
2. Detailed appraisal Note
3. D P Note
4. Letter of Pledge cum Take Delivery Note
5. Letter of Installment /Letter of continuing security
6. Letter of undertaking for retail Loans

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7. Hypothecation of goods
8. Letter of authority to pay assaying charges to the assayer.
Other Conditions:
1. Method of assessing the market value and safe keeping the ornaments will
be the same as in the case of Baroda Advance Against Gold Jewellery /
Ornaments
2. In case the Account turns NPA, method of recovery of Banks dues will be
the same as in the case of Baroda Advance against Gold Jewellery /
Ornaments
3. Assayers Charges have to be borne by the borrower and charges will be
same as in the case of Baroda Advance against Gold Jewellery / Ornaments
i.e. Rs. 250 per lac.
4. KYC Norms to be strictly complied with.
5. Sanctioning Authority to ascertain and ensure that the person offering
the Gold Ornaments as security is the actual owner of the ornaments and to
make record of this fact in the appraisal note.
6. As the gold is highly price sensitive, branch to ascertain the value of
ornaments on Quarterly basis and ensure that necessary margin is
maintained. If required, limits may be reduced to maintain the margin and
borrower may be advised to restrict his drawings upto revised limit.
7. Branches to use the services of the Assayer already empanelled for
Baroda Advance Against Gold Jewellery/Ornaments and charges to be paid
@250/- per lac and in the multiples thereof, as applicable for Baroda
Advance Against Gold Jewellery/Ornaments
8. As per revised security norms, Gold coins (specially minted and sold by
Banks) can now be accepted as primary/collateral security.

Detailed guide lines as per circular no Bcc/Br/102/264 20.09.2010

BARODA ADVANCE AGAINST GOLD ORNAMENTS / JEWELLERY

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Target Group: All individuals including staff and ex-staff members,being the
true
owner of the Gold Ornaments /Jewellery. KYC guidelines must be
strictly complied with, No third party loan to be granted i.e. loan
to be
granted to immediate owner only.
Purpose:

Any purpose other than speculation

Security : The loan shall be secured by pledge of min. 22 carat / hall mark
jewellery / Gold coins. Ornaments containing Gems and stones will not be
accepted.
Limit:

Min Rs.0.25lac Max: Rs.10.00lacs

However max limit is to be fixed on the basis of per gram


advance value of Gold as circulated by our bank on
quarterly basis.
Margin: Up to loan of Rs. 3.00lacs:
25% on the present market value of
the Gold Ornaments assessed by the Banks approved assayer. Ornaments
containing gems and stones will not be considered as security .
Above Rs.3.00lacs : 35% of above.
Rate of interest:
Base Rate plus 3% p.a. with monthly
Rests :
Loan: for maximum of 36 months;
Overdraft is not permitted
Unified Processing charges:
0.50% of loan limit minimum Rs.250/- plus service tax.
Documents /Papers:
1. Application Form meant for Baroda Traders Loan
2. Detailed appraisal Note
3. D P Note
4. Letter of Pledge cum Take Delivery Note
5. Letter of Installment
6. Letter of undertaking for retail Loans
7. Hypothecation of goods
8. Letter of authority to pay assaying charges to the assayer.

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Other Conditions:
1. Gold ornaments / Jewellery /Gold Coins shall be valued by banks approved
Gold valuer/assayer in the Branch Premises in presence of Branch Manager
/Officer and the borrower concerned and a certificate of valuation along
with complete details of quality and quantity of securities of Gold Ornaments
/Jewellery shall be kept on record. After assaying, the gold ornaments are
to be put in a cloth bag or thick polythene bag and sealed in presence of the
borrower / inscribing their name thereon. The details of the sealed packet
containing name of borrower, details of securities and loan sanctioned must be
recorded in a register under a specific serial number allotted to the packet and
thereafter packet may be kept under joint custody. The assayer must bring his
own metal stamp and the same may be affixed on the jewel packet along with
the branch seal.
2. In case the Account turns NPA, method of recovery of Banks dues will be
the same as in the case of Baroda Advance against Gold Jewellery /
Ornaments
3. Assayers Charges have to be borne by the borrower and charges will be
same as in the case of Baroda Advance against Gold Jewellery / Ornaments
i.e. Rs. 250 per lac.
4. KYC Norms to be strictly complied with.
5. Sanctioning Authority to ascertain and ensure that the person offering
the Gold Ornaments as security is the actual owner of the ornaments and to
make record of this fact in the appraisal note.
6. As the gold is highly price sensitive, branch to ascertain the value of
ornaments on Quarterly basis and ensure that necessary margin is
maintained. If required, limits may be reduced to maintain the margin and
borrower may be advised to restrict his drawings upto revised limit.
7. Branches to use the services of the Assayer already empanelled for
Baroda Advance Against Gold Jewellery/Ornaments and charges to be paid
@250/- per lac and in the multiples thereof, as applicable for Baroda
Advance Against Gold Jewellery/Ornaments
8. As per revised security norms, Gold coins (specially minted and sold
by Banks) can now be accepted as primary/collateral security.
Detailed guide lines as per circular no Bcc/Br/102/264 20.09.2010
Test of understandings

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Q1. Minimum amount of loan which can be availed in Baroda traders loan against
gold is Rs. ------(a)
Rs.0.25lac
(b)
Rs.0.50lac
(c)
Rs 2.00lacs
(d)
Rs.3.00lacs
(e)
Rs.5.00lacs
Q2. The maximum amount which can be availed in Baroda Advance against gold is
Rs. ---------(a)
Rs.200lac
(b)
Rs.10.00lac
(c)
Rs 2.00lacs
(d)
Rs.50.00lacs
(e)
Rs.15.00lacs
Q3. For availing advance against gold for Rs.5.00lacs margin
is to be kept @-----%
(a)
25
(b)
15
(c)
30
(d)
35
(e)
40
Q4. Maximum repayment period which can be given in Baroda traders scheme
against gold is ---------- months.
(a)
60
(b)
30
(c)
35
(d)
36
(e)
48
Q5. What kind of gold coins are eligible to give loan against them?
(a)
Any gold coin
(b)
Purchased from overseas
(c)
Purchased from any goldsmith
(d)
Purchased from Tanishque
(e)
specially minted and sold by Banks

Answers of questions

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Q
A

1
b

2
b

3
d

4
a

5
e

EDUCATION LOAN - BARODA VIDYA


TARGET GROUP:
Parents of Students pursuing school education from Nursery to Standard 12th.
ELIGIBILITY:
Should be an Indian national residing in India. Student should have secured
admission to a Recognized school / High school / Jr. College (including CBSE /
ICSE / State Board) for any of the following courses.
1. Stage I:
2. Stage II:
3. Stage III:

Nursery to 5th STD.


6th to 8th STD.
9th to 12th STD.

COVERAGE OF EXPENSES:
Fees payable to college / school / Examination / Library / Laboratory fee / Fee
and other charges payable to hostel / Purchase of books / equipment /
instruments /uniforms / Personal Computers / Laptops wherever required.
Caution deposit / building fund / refundable deposit supported by institution
bills / receipts. Cost of external coaching / tuition is not to be considered.
QUANTUM OF FINANCE:
Need based finance subject to repayment capacity of parents. Maximum Rs.
4.00 Lac. Loan for stage II can be considered even though loan sanctioned
earlier for stage I is outstanding, or loan for Stage III can be considered even
though loan sanctioned earlier for Stage II is outstanding subject to repaying
capacity and provided the loan account for previous stage/s is/are conducted
satisfactorily.
MARGIN: Nil

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REPAYMENT PERIOD:
Loan for each yearly sub limit is repayable in 12 equal monthly Installments.
First installment to be due 12 months after first Disbursement of each years
loan component.
REPAYMENT CAPACITY:
Total deductions from the income including the proposed installment and
interest should not exceed 60% of total income.
No documentation & processing charges. No exchange on Drafts issued in
favor of school or student.
FINANCING BRANCH: Loan may also be considered at the place of posting /
service of the parent after obtaining and recording the proof of permanent
residence for future reference.
SECURITY:
No tangible / collateral security. In case the loan is given for purchase of
computer the same is to be hypothecated to the Bank.
DISBURSEMENT:
Directly to School / Institution / hostel term wise / year wise. Directly to
bookseller / shop for purchase of books, instruments, equipments.
DETAILS OF EXPENSES:
The details of expenses to be obtained from college / school / institution. In
case such details are not furnished by the school authorities suitable
declaration from parents be obtained and carefully examined / satisfied.
PROGRESS REPORT:
Progress report to be obtained at regular intervals and kept on record.
OTHER CONDITIONS:
A stamped declaration / an affidavit confirming that no Educational loan is
availed from other banks/ institutions for the child for whom loan is sanctioned
by us and shall not avail educational loan from any other bank without obtaining
NOC from our bank during the pendency of our educational loan. No dues
certificate need not be insisted upon.
CLASSIFICATION: Priority Sector

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REPHASEMENT:
The rephasement of repayment in genuine cases be considered by the next
higher authority.

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EDUCATION LOAN - BARODA GYAN


TYPE OF FACILITY: Term Loan
TARGET GROUP:
Students pursuing Graduation, Post graduation, Professional & other courses in
India.
ELIGIBILITY:
All graduation courses / Post graduation courses, Masters and PhD /
Professional courses / Other approved courses / Computer certificate courses
of reputed institutes accredited to Department of Electronics or institutes
affiliated to University / Courses like CA, ICWA, CFA, CS, etc./ Courses
offered in India by reputed foreign Universities / Evening courses of institutes
approved by State Central Govt. / UGC / AICTE / AIBMS / ICMR / ICAR /
Courses offered by National Institutes and other reputed private institutions /
The college / Institute must have been approved by the State / Central
Government / UGC / AICTE etc.
STUDENT ELIGIBILITY:
1.
Should be Resident Indian.
2.
Secured admission to either of above courses.
3.
No minimum qualifying marks.
PURPOSE / COVERAGE:
Fees payable to college / school / hostel Examination / library / Laboratory
fees /purchase of books / equipments / instruments/ uniforms travels expenses
/ purchase of computers for completion of the course any other expense
required to complete the course. Caution deposit / building fund / refundable
deposit supported by Institution bills / receipts. Any other expenses required
to complete the course like study tours, project works, thesis, etc. Cost of
external coaching / tuition is not to be considered.
AMOUNT:
Need based finance subject to the repaying capacity of the parents / students,
based on the expected income to be generated after completion of the course
(as per general assessment to be made by the Branch). Max Rs.10.00 lacs
MARGIN:
Up to Rs. 4 lacs: Nil
Above Rs. 4 lacs: 5 %

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Margin may be brought in on year-to-year basis as and when disbursements are


made on a pro rata basis.
REPAYMENT:
Repayment holiday / moratorium: Course period + 1 year or 6 months after
getting the job, whichever is earlier. The loan is repayable in 10 years ;if amount
is up to Rs.7.50lacs & it is 15 years if amount is above Rs.7.50 lacs after the
above period.
SECURITY:
Up to Rs. 4 lacs: No security
Above Rs. 4 lacs upto Rs. 7.5 lacs: Collateral security in the form of suitable
third party guarantee along with assignment of future income of the student
for repayment of the installments. The documents should be executed by the
student and the parent / guardian as joint borrower.
Above Rs.7.50lacs: the collateral security is to be taken with 100% coverage at
least.
CHARGES:
No processing / upfront charges.
DISBURSEMENT:
Directly to School / Institution / hostelterm wise / year wise in stages as per
the requirement / demand. Directly to bookseller / shop for purchase of books,
instruments, equipments.
REIMBURSEMENT:
For the first year of study, at times institutions insist that the students pay
the fees immediately on admission, such payments may be reimbursed after
obtaining necessary proof of payment. In genuine cases, expenses for purchase
of books etc. may be reimbursed after obtaining necessary proof of purchases
and payment.
OTHER TERMS & IMPORTANT ASPECTS OF SCHEME:

Stamped declaration / affidavit confirming that no loans are availed from


other Banks / institutions.

Close monitoring, continuous follow-up by calling for periodical


performance reports and maintenance of contacts.

No dues certificate need not be insisted upon.

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FREEBIES:
Debit card to the student on his account.
CLASSIFICATION: Priority Sector
Note: No application for educational loan received should be rejected without
the concurrence of the next higher authority.
DEVIATION:
Deviation in respect of eligibility norms, margin, security, etc. may be allowed by
authority of one step above sanctioning authority on a case to case basis on
merits.
ADDITIONAL LOAN / ENHANCEMENT IN LIMIT:
a) Loan for higher studies in India under Baroda Gyan can be considered even
though loan sanctioned earlier under Baroda Vidya is outstanding subject
to repaying capacity and provided the loan account for previous stage/s is
/ are conducted satisfactorily.
b) If the student wants to pursue further education, additional loan /
enhancement in limit to continue further course may be considered within
the overall maximum limit The additional security, if required, as per
enhancement in limit should invariably be taken e.g. Mr. A has availed
educational loan for his studies for MBBS. After completion of MBBS, he
seeks admission for M.D./ M.S., he may be granted loan within overall
ceiling limit of amount, if available. In this case, the holiday for
repayment granted initially, will stand extended further as per the
duration of the course.
FINANCING BRANCH:
Loans up to Rs. 4.00 lacs: Loan may also be considered at the place of posting
/ service of the parent after obtaining and recording the proof of
permanent residence for future reference.
Loans above Rs. 4.00 lacs: Loans may also be considered at the place of
posting / service of the parent who is either co-borrower or guarantor of
the loan as the case may be, after obtaining and recording the proof of
permanent residence for future reference.

REPHASEMENT:
The rephasement of repayment in genuine cases be considered by the next
higher authority.

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Rate of interest:
Up to Rs. 4.00Lacs = Base rate + 2.50%
Rs.4.00-7.50Lacs = Base rate + 4.00%
Above Rs.7.50Lacs= Base rate + 3.50%
Concessions:
1% Girl Student
1% For regular servicing of interest during study period.
1% to students sought admission in premier institutions viz
IIMs,IITs & AIIMS for loans more than Rs.7.50 lacs secured by
tangible securities.
Circular :BCC:BR: 104/290dt 14/08/12.

CIRCULAR REFERENCE
BCC/BR/96/380 Dated 08.11.2004 (Master Circular)
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/59 Dated 27.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/100/101 Dated 12.04.2008
BCC/BR/101/15 Dated 09.01.2009

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EDUCATION LOAN - BARODA SCHOLAR


TARGET GROUP:
Students going abroad for Professional / Technical studies.
ELIGIBILITY OF COURSES:
Graduate / Post Graduate / Doctorate / Job oriented professional / technical
courses offered by reputed Universities overseas.
STUDENT ELIGIBILITY:

Should be an Indian National

Secured admission to professional / technical courses at Foreign


University / Institutions.

No minimum qualifying marks required.


COVERAGE OF EXPENSES:
a) Admission / Tuition Fees to College / University.
b) Hostel / Mess charges.
c) Examination / Library / Laboratory fee.
d) Purchase of books / equipments / instruments / uniforms.
e) Caution deposit / building fund / refundable deposit supported by institution
bills / receipts.
f) One way Travel expenses / passage money.
g) Purchase of computers if essential for completion of the course.
h) Any other expense required to complete the course e.g. study tour, project
work, thesis, etc.
QUANTUM OF FINANCE:
Need based finance maximum Rs. 20.00 lacs
MARGIN: Up to Rs. 4 lacs - NIL
Above Rs. 4 lacs - 15 %.
REPAYMENT PERIOD:
Repayment Holiday / Moratorium Period:

Course period + 1 year, or

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earlier.

6 months after getting job, whichever is

Repayment Period: The loan is repayable


(max) in 10 years up to Rs. 7.50lacs & in 15 years if above Rs.7.50lacs
after the above period. If the student is not able to complete the course
within the scheduled time extension of time for completion of course may
be permitted for a maximum period of 2 years. If the student is not able
to complete the course for reasons beyond his control, sanctioning
authority may at his discretion consider such extensions as may be
deemed necessary to complete the course. The accrued interest during
the repayment holiday period to be added to the principal and repayment
in Equated Monthly Installments (EMI) be fixed.

PROCESSING CHARGES:
1 % to be recovered upfront which shall be refunded in its loan account , if
applicant avails loan.
FINANCING BRANCH:
Loans up to Rs. 4.00 lacs: Loan may also be considered at the place of posting
/ service of the parent after obtaining and recording the proof of
permanent residence for future reference.
Loans above Rs. 4.00 lacs: Loans may also be considered at the place of
posting / service of the parent who is either co-borrower or guarantor of
the loan as the case may be, after obtaining and recording the proof of
permanent residence for future reference.
SECURITY:
Up to Rs. 4.00 lacs: No security Coobligation of parents.
Above Rs. 4.00 lacs and up to Rs. 7.50 lacs, collateral in the form of a
suitable third party guarantees.
Above Rs. 7.50 lacs Collateral security equal to 100% of the loan amount or
suitable third party guarantee along with the assignment of future income
of the student for payment of installments.
NOTE: The document should be executed by the student and the parent /
guardian. The security can be in the form of land / building / Govt. securities /
Public Sector Bonds / Units of UTI, NSC, KVP, LIC policy, gold, shares /
debentures, bank deposit, Relief Bonds, etc. standing in the name of student /
parent / guardian or any other third party with suitable margin. Margin on
securities to be considered as per extant guidelines. Wherever the land /
building is already mortgaged, the unencumbered portion can be taken as

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security on 2nd charge basis provided it covers the required loan amount. In
case the loan is given for purchase of computer the same to be hypothecated to
the Bank. Regarding assignment of future income of the student, branches are
requested to obtain a stamped letter of undertaking as per proforma given by
the Bank.
No application for educational loan received should be rejected without the
concurrence of the next higher authority.
DISBURSEMENT:
The loan to be disbursed in stages as per the requirement / demand directly to
the institutions / Vendors of Books / equipment / Instruments to the extent
possible. Send covering letter along with disbursement Demand Draft / Bankers
Cheque to the proposed college / university of admission informing college /
university authority about sanctioning of education loan to the student. Request
the college authority to inform us, in case of suspension / dismissal /
postponement of attending class by the student. Obtain acknowledgement of
letter from the college / university and keep on record.
PROGRESS REPORT:
Progress Report to be obtained at regular intervals and be kept on record.
OTHER CONDITIONS:
A stamped declaration / an affidavit confirming that no Educational loan is
availed from other bank / institutions for the student for whom loan is
sanctioned by us and shall not avail educational loan from any other bank without
obtaining NOC from our bank during the pendency of our educational loan be
obtained. No dues certificate need not be insisted upon.
FREEBIES:
Drafts in foreign currencies drawn on our branches / subsidiaries required in
favour of college / University / Student will be issued free of exchange /
commission.
ADDITIONAL LOAN / ENHANCEMENT IN LIMIT:
If the student wants to pursue further education, additional loan enhancement
in limit may be considered within the overall-ceiling limit. In this case, the
holiday for repayment granted initially, will stand extended further as per the
duration of the course.
CAPABILITY CERTIFICATE:

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Branches can also issue the capability certificate for students going abroad for
higher studies. For this, financial and other supporting documents may be
obtained from applicant, if required. (Some of the foreign universities require
the student to submit a certificate from their bankers about the sponsors
solvency / financial capability, with a view to ensure that the sponsors of the
students going abroad for higher studies are capable of meeting the expenses
till completion of studies.)
REPHASEMENT:
The rephasement of repayment in genuine cases be considered by the next
higher authority.
CLASSIFICATION OF ADVANCE: Priority Sector.

CIRCULAR REFERENCE
BCC/BR/96/380 Dated 08.11.2004
BCC/BR/97/015 Dated 24.01.2005
BCC/BR/97/117 Dated 27.04.2005
BCC/BR/97/061 Dated 16.06.2005
BCC/BR/96/182 Dated 03.05.2004(Regarding DLP)
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/59 dated 27.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/99/310 Dated 12.10.2007
BCC/BR/99/321 Dated 25.10.2007
BCC/BR/99/322 Dated 29.10.2007
BCC/RB/100/210 dated 15.01.2008
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/100/101 Dated 12.04.2008
BCC/BR/101/15 Dated 09.01.2009

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BARODA LOAN FOR CAREER DEVELOPMENT


TARTGET GROUP: Loan for pursuing vocational courses, trainings, pilot
trainings, skill up gradation trainings, diploma / degree courses offered in
aviation, hospitability and travel management, executive development etc
COURSES ELIGIBLE:
1.
Graduate, Post Graduate, Diploma, Professional Courses, Specialization
courses offered by reputed Universities / Institutions (Indian or
Overseas), having assured employment prospects.
2.
Skill up gradation courses offered by various institutes (Indian /
Overseas), having assured employment prospects.
3.
Courses offered by Hospitality Management Institutes for Skill
upgrade / Short course / Training etc.
4.
Pilot Training Courses, offered by reputed Institutions (Indian or
Overseas), approved by Director General of Civil Aviation (DGCA) /
International Civil Aviation Organization (ICAO).
ELIGIBILITY:
1.
Applicant should be a Resident Indian.
2.
He / she should have secured admission to the course through Entrance
Test / Merit-based selection process.
COVERAGE OF EXPENSES:
1.
Tuition Fees, Examination fees, Library fees, etc. charged by the
Institute.
2.
Hostel fees
3.
Cost of Books, equipments, instruments, etc.
4.
Personal Computers / Laptops, wherever required.
5.
Any other expenses required to complete the Course viz., Study Tours,
Project works, thesis, etc.

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QUANTUM OF FINANCE:
1.
Need bases finance, subject to repayment capacity of the applicant,
based on expected income after course completion.
2.
Maximum Loan:
(i)
Courses within India: Rs. 10 lacs
(ii)
Courses Abroad: Rs. 20 lacs
MARGIN: 15 % (Scholarship / Assistantship received if any, should not be
included in margin)
REPAYMENT PERIOD:
Loan to be repaid in maximum 60 EMIs.
Repayment Holiday: Course period + 6 months or 3 months after getting a job,
whichever is earlier.
PROCESSING
&
DOCUMENTATION
CHARGES: As
per
Circular
No.BCC/BR/99/321 dated 25.10.2007
SECURITY:
1.
Advance to be secured by way of 100 % tangible collateral security in the
form of mortgage of property, Assignment of securities like NSCs, KVPs,
LIC Policies and Government Bonds etc.
2.
Assignment of Future income of the applicant.
3.
Personal Guarantee of Father / Mother of the applicant or any other
person having sufficient worth.
DISBURSEMENT:
Directly to the Institute / University, as per schedule specified. Fees already
paid may be reimbursed against original receipt, within one year only.
SANCTIONING BRANCH:
Branch, which is in close proximity to the permanent place of residence of the
applicant / parents.
OTHER CONDITION:
Periodical (Yearly / Half Yearly) Progress Report to be obtained and kept on
record.
CIRCULAR REFERENCE
BCC:BR:99:358 Dated 06.12.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009

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BARODA EDUCATION LOAN FOR VOCATIONAL EDUCATION AND


TRAINING.

Purpose: Coverage of expenses for pursuing Education and Training courses


offered bv ITIs , Polytechnics and other technical institutions, for skill
development & to
earn livelihood.
Eligibility: Vocational /Skill development courses of duration from 2 months to
3years Run or supported by Ministry /Deptt/Organization of the Govt or a
Company /society/ organization supported by National Skill Development
Corporation or State, Skill Missions /State Skill Corporations, preferably
leading to a certificate /diploma /degree etc. issued by a Government
Organization or an organization recognized /authorized by the Govt. to do So
State Level Bankers committee (SLBC) / State level Co-ordination Committee
(SLCC) may add other skill development courses /programmes, having good
employability.
Maximum Amount;
Course of duration
up to 3 months
3-6 months

Need based finance


Rs.20000/=
Rs. 50000/=

6- 1 year
More than a year

Rs.75000/=
Rs.150000/=

Margin: Nil
Repayment;
Moratorium

Repayment to commence after a period of 6 months from


completion of course of maximum 1 year duration. Whereas for courses of
duration of more than 1 year, repayment will commence after a period of 12
months from the completion of course.
Repayment Period:
Amount of loan
Rs50000
Rs50000-Rs1.00lac
More than Rs.1.00lac

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Max repayment period


Up to 02 years
2-5 years
3-7 years.

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Others: Any application of this loan is to be disposed off within a period of 07


days & no loan application is to be rejected without taking concurrence of
next higher
authority
Test of understandings.
Q1. For availing benefit of education linked subsidy scheme maximum amount
of the income of entire family of student should not exceed Rs. ---------lacs
(a)
10.00
(b)
5.00
(c)
2.00
(d)
4.00
(e)
4.50
Q2.The upfront charges are to taken @--% of loan amount while sanctioning a
loan under Baroda Scholar scheme subject to the condition to refund it back in
loan account if party avails the loan
(a)
1.00
(b)
2.00
(c)
1.50
(d)
0.50
(e)
3.00
Q3.On which kind of ed loans education linked subsidy scheme is applicable
(a)
All education schemes
(b)
Baroda gyan
(c)
Baroda scholar
(d)
Baroda Vidya
(e)
For all higher studies courses in India for loan up to Rs.10.00lacs
Q4.Margin is to be taken @ ---% if a borrower avails loan above
Rs.4.00lacs in Baroda Scholar scheme
(a)
25
(b)
05
(c)
10
(d)
15
(e)
20
Q5. Name the education loan scheme where 100% collateral is required
irrespective of amount.
a)
Baroda Gyan
b)
Baroda Scholar
c)
Baroda Career development
d)
Baroda Vidya
e)
No scheme is there.

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Answers of the questions

Q
A

1
e

2
a

3
e

4
d

5
c

BARODA AUTO LOAN


The Loan schemes are detailed as under:
1)
Baroda Car Loan
2)
Baroda Car Loan to HNIs / Corporates
3)
Baroda Loan For Two Wheelers
PURPOSE:

For purchase of any new four wheeler, Car, Jeep, Station Wagon etc. and
Two Wheeler for private use.
For purchase of second hand car / Two Wheeler ( not more than 3 years
old )

TYPE OF FACILITY :

Term Loan

ELIGIBILITY:

Salaried Employees / Directors of private / Public Limited Companies,


Proprietors / Partners of Partnership firms and Government Employees /
individuals, high salary earners / Businessmen / Professionals, farmers.
Prior account relationship not essential. However, statement of account
for last six months should be studied to satisfy that the conduct of the
account is satisfactory.
Minimum age 21 years
Maximum age Salaried : Present age + repayment period should not
exceed retirement age. Others : Present age + repayment period should
not exceed 65 years.
Minimum Employment one year / stable business.

LIMIT & MARGIN:

Limit :

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New Vehicle
:
Rs. 15.00 lacs,
For HNIs / Corporates
:
Rs. 100 lacs
[HNIs means individuals with minimum monthly salary of Rs. 1.25 lacs
and carry home salary should be atleast 40% ( inclusive of proposed
deductions ) whereas Corporate means having minimum tangible net
worth of at least 10 times of the loan requested shall be considered
under the scheme.]
Old Vehicle : Rs. 10.00 lacs,
Subject to
24 times of gross monthly income for salaried persons
3 times of gross annual income ( average ) for others
For Two Wheeler
:
Rs. 1.00 lac or 5 times of gross monthly income
whichever is lower subject to repayment capacity.

Margin :

Loan up to Rs. 15.00 lac


- 15 % on Road price (i.e. Cost+Reg.
+Ins.)

Loan above Rs. 15.00 lac


- 20% on cost including Registration and
Ins.

Old Vehicle
- 40%

Two Wheeler
- 10% on invoice value
PROCESSING & DOCUMENTATION CHARGES:

Car Loans
Up to Rs. 15.00 lacs
- 0.75 % Maximum Rs.10000 +Service
Tax (ST)
Limit over Rs. 15.00 lacs - 0.50 % of loan amount with a Minimum
Rs.10000 + Service Tax, No maximum.
Two Wheeler
2 % of Loan amount minimum Rs. 250/- + ST

REPAYMENT:

New Car
Second Hand Cars
Two Wheeler

84 EMIs
36 EMIs
- 60 EMIs

REPAYMENT CAPACITY: (Car Loan)

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Income
Up to Rs.20000
Rs20000- 100000
Above Rs.100000

Total deduction not to


exceed
50% of Gross Monthly
Income
60%
of
-----------do---------------70%
of
-----------do----------------

SECURITY:

Banks charge to be noted with RTO


Comprehensive Insurance of vehicle with Bank clause

DOCUMENTS: D P Note, Hypothecation of Vehicle (LDOC-20),Letter of


Installment with
acceleration Clause, Declaration cum Undertaking cum
authority(as per circular dt 30 th April 2012),Banks Charge to be noted with
RTO (
Certified Xerox copy of RTO registration having banks
name as
financier to be kept on record with the documents), Blank
TTO form in
duplicate general Form of guarantee if stipulated in sanction. Other documents
to charge the Collateral securities if stipulated.
CONCESSION IN RATE OF INTEREST:
Concession of 0.50% in rate of interest will be provided to those who
offer minimum 50 % of liquid security e.g. NSC, KVP, LIC Policy or Fixed
Deposit of our Bank as collateral.

Concession of 0.25% in interest rate on car loan is available to all our


existing home loan borrowers having a good track record of repayment,
without any overdue in a/c.
INSURANCE:

Comprehensive Insurance of the Vehicle with Banks Clause. In case of


second hand car, the existing insurance policy be got transferred to the
name of the borrower with banks clause.

TAKE OVER OF LOAN ACCOUNT:

Request from the Principal borrower is required. ( No request for


takeover of account for second hand car is to be entertained )
The car should not be more than 3 years old on the date of takeover of
loan account.

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Valuation certificate from approved garage is to be obtained, if car is


more than 2 years old.
It is to ensure that previous loan account is regular with the existing
bank and there is no overdue in the account. (Statement of A/C should be
kept on record)
To ensure that the other banks lien on the car in RTO records is
cancelled and simultaneously our banks name is entered in the books of
RTO as financer.
Insurance policy, if in force, to be modified and our banks name to be
replaced with the previous bank in the Bank Clause of the policy.
Disbursement to be made directly to the bank by super scribing the
purpose.

OTHER CONDITIONS:

Bankers Cheque / DD issued by the bank towards disbursement of car


loan should be super scribed Car Loan to Mr. / Mrs.
_________________
In case of second hand cars, certificate of value and residual life of the
car to be obtained from a reputed / approved garage.
12 post dated cheques to be obtained in advance every year, with
undertaking to maintain adequate balance.
Blank TTO form in duplicate to be obtained.
Concession of 0.50 % in rate of interest to those who offer minimum 50
% liquid security e.g. NSC, KVP, FDR, LIC Policy etc. (excluding
earmarking of PF balances) as collateral.
It has been decided by our Bank to levy the charges for deviations
(financial / non financial) @ Rs. 3000/- per deviation with maximum of Rs.
10,000/-.
In case the loan is granted to corporate, the vehicle should be used
exclusively by the Directors / Executives of the Company and also not
registered as Commercial Vehicle.
Maximum deductions including proposed EMI should not exceed 60% of
income.
The job of installation of Gas Kit must be done by the authorized dealer.
Installation of CNG/LPG in New/2nd hand car not more than 5 years
Online Application module has been introduced from
09.08.2010
and
the
URL
is
(URL
https://www.bankofbaroda.com/oala2010
or
https://www.bankofbaroda.co.in/oala2010
or
https://www.bankofbaroda.in/oala2010)

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POWER OF DEVIATION:
Powers of Financial Deviations which have a direct impact on Profit & Loss
A/C of Bank shall not be exercised below the level of BCC. However non
financial deviations may be considered by a Regional head

CIRCULAR REFERENCE
CO/ BR/90/194 Dated 28.12.1998
CO/ BR/94/092 Dated 11.04.2002
BCC/BR/94/317 Dated 21.12.2002
BCC/BR/95/150 Dated 29.04.2003
BCC/BR/96/081 Dated 28.02.2004
BCC/BR/96/102 Dated 09.03.2004
BCC/BR/97/195 Dated 03.08.2005
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/264 Dated 20.09.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/99/310 Dated 12.10.2007
BCC/BR/99/321 Dated 25.10.2007
BCC/BR/99/322 Dated 29.10.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009

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Test of understandings
Q1. Power of deviation related to the issue of affecting profit & loss in case of
retail lending rests with;
a)
Regional head
b)
Deputy Zonal Head
c)
Zonal Head
d)
M.C.B
e)
General Manager(retail),B.C.C
Q2.Maximum car loan which can be given for an old car is;
(a)
Rs.5.00lacs
(b)
Rs.10.00lacs
(c)
Rs.15.00lacs
(d)
Rs.2.00lacs
(e)
Rs.12.00lacs
Q3. The margin at on road price while financing car (amount above Rs.15.00lac)
to be kept @
(a)
15%
(b)
20%
(c)
25%
(d)
10%
(e)
30%
Q4. A salaried person applies for car loan with gross monthly as Rs.1.20lac;his
repayment capacity is to be ascertained @------(a)
60%
(b)
50%
(c)
70%
(d)
40%
(e)
30%

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Q5. The fees to levied on acceptance of deviation from the party @ Rs.3000/
per deviation subject to maximum amount of Rs.---------- in case of retail
lending
a)
5000
b)
6000
c)
10000
d)
9000
e)
15000

Answers of the questions


Q
A

1
e

2
b

3
b

4
c

5
c

BARODA PERSONAL LOAN


We are aware that our Product Baroda Personal Loan is a clean advance from
security angle. Few other products viz. Baroda Vaibhav Laxmi, Loan to
Pensioners, Loan to Defence Pensioner, Loan against Earnest Money Deposit ,
Loan for Consumer Durables and Loan for Laptop / PCs and Baroda Desh Videsh
Yatra Scheme are almost of same nature with little difference. These Loan
Schemes vide Banks Circular no. BCC: BR: 101:93 dated 28.03.2009 have been
realigned for operational convenience under the name BARODA PERSONAL
LOAN as below:
1)
2)
3)
4)
5)
6)
7)

Baroda
Baroda
Baroda
Baroda
Baroda
Baroda
Baroda

Personal Loan
Vaibhav Laxmi
Loan to Pensioners
Loan to Defence Pensioners
Loan for Earnest Money Deposit
Loan for Consumer Durables
Loan for Laptop and PCs

For the convenience of the readers the salient features of the scheme as
mentioned above are detailed as under:
PURPOSE:
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To meet personal expenses / exigencies related to medical, education,


marriage, family / social functions, payment of taxes or any other family
needs etc.
Any purpose other than speculative.

ELIGIBILITY:

Professional, self employed persons, Employees of corporate, Educational


Institution, Doctors, Architects, Interior Designers, Engineers,
Chartered Accountants, Technical & Management consultants & Practicing
Company Secretaries with 1 year stable business.
Proprietorship (Proprietors), Partnership Firms (Partners), Existing
staff members, Ex-Staff including VRS optees & Non residents are
not eligible under the scheme.
Permanent employees with minimum 1 year service of Central / State
Government / Autonomous Bodies / Public / Joint Sector Undertakings,
Reputed Limited Companies / MNCs & Educational Institutions.
( Employees of Proprietorship & Private Limited companies and
businessmen are not covered under this scheme )
Minimum 21 years and Age + Repayment period of loan should not
exceed retirement age for salaried class and 65 years for self employed.
Insurance Agents subject to

The agent is doing insurance business minimum for last 5 years.

The agent has regular and stable income and maintaining SB


account with our Bank for crediting commission cheques received
from the insurance co. with a letter from the agent addressed to
the insurance co. to send the commission cheques directly to the
Bank.
Pension Loans are available to Pensioners only.
Loan for Earnest Money Deposit is available for Business persons also
i.e. proprietors, partners of Partnership firms or Directors of Pvt. Ltd.
Co. in addition to above class of persons.

LIMIT:

Minimum No Limit ( BCC : BR : 101 : 137 dt. 04.05.2009 )


Maximum

Category A & B ( as per risk rating ) Rs. 2,00,000/


Category C ( as per risk rating )
- Rs. 1,00,000/-

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Category D ( as per risk rating )


- No loan to be sanctioned
Subject to :

6 times of Gross monthly income for salaried individuals.

75% of the last years taxable income for self-employed and


professionals.
except the following :

Loan to Pensioner: 10 times of monthly pension maximum Rs. 1.00


lac, whichever is lower
Loan to Defence Pensioner: 20 times of monthly pension maximum
Rs. 2.00 lacs, whichever is lower
Loan for Consumer Durables: 5 times of gross monthly income
maximum Rs. 1.00 lac, whichever is lower
Loan for Laptop / PC: 5 times of gross monthly income max. Rs.
1.00 lac, whichever is lower.
Loan for Earnest Money Deposit: 8 times of gross monthly income
or 90% of application money or maximum Rs. 5.00 lacs, whichever is
lower.
PROCESSING CHARGES:

2 %, Minimum ` 500/-+ST except following :

Loan for Earnest Money Deposits - 0.35 % of loan amount

RATE OF INTEREST:
Loan to pensioners/defense
pensioners:
Loan to earnest money deposit:
Baroda personal Loan
:

Base Rate+ 4.5%


Base rate+ 3.25%
Base Rate+ 4.50%

REPAYMENT:

Maximum 36 EMIs commencing one month after disbursement except :

Loan to defense pensioners


: 60 months

Loan to Consumer durables


: 60 months

Loan for Laptop / PCs


: 60 months

Loan for Earnest Money Deposits :


by lump sum payment in 6
months
DOCUMENTATION:

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D. P. Note / Letter of Installment with acceleration clause / Letter of


undertaking from borrower - employer / General Form of Guarantee /
Hypothecation of Consumer Goods Laptop purchased out of loan amount,
if any / In case of Loan for Earnest Money Deposits power of attorney
to collect and adjust refund amount in loan and stamped undertaking to
create EM after execution of sale deed.

SECURITY:
A copy of undertaking from employee ( for salaried persons ) authorizing
the employer to deduct from the salary monthly loan installment and
remit the same to the bank for the credit of loan account and also to
deduct from the terminal benefits, the outstanding loan amount with
interest. A copy of the said undertaking duly acknowledged by the
employer has to be kept on branch records.

If the employer is not ready to acknowledge the undertaking given by the


employee, branch should obtain 12 Post Dated Cheques from customer
drawn on his account with prescribed undertaking.

Third party guarantee, if possible.


LENDING POWERS:

Where the assets are created out of Bank Loan and no tangible collateral
securities are available, DLPs of clean loans shall be exercised by the
sanctioning authority.
POWER OF DEVIATION:
Powers of Financial Deviations which have a direct impact on Profit & Loss
A/C of Bank shall not be exercised below the level of BCC. However non
financial deviations may be considered as per powers delegated.
OTHER CONDITIONS:

Prior account relationship not necessary. However, account statement for


last 6 months (account either with our bank or with other bank) to be
studied to satisfy that the conduct of account is satisfactory and a note
should be made in the proposal.
Interest rate prevailing on the date of disbursement of the term loan will
be the applicable rate during currency of the loan and will not undergo
any change in BPLR from time to time.

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Penal interest @ 2 % p.a. for non payment / delayed payment on overdue


amount.
In case the borrower is transferred and our bank has a branch at the
place where the borrower is transferred, the outstanding loan amount
may be transferred to that branch as per the banks extant guidelines for
transfer of accounts.
It has been decided by our Bank to levy the charges for deviations
(financial / non financial) @ Rs. 3000/- per deviation with maximum of Rs.
10,000/-.
Before sanction of loan for Earnest Money Deposit, branch to ensure that
proposed borrower is eligible for financing the Housing Loan project
under the Home Loan guidelines for which he is bidding and is also
agreeable to avail Housing loan from us.
Total deductions should not exceed 60% of gross salary per month
except in case of loan for Earnest Money Deposit where home loan
guidelines shall apply.
Credit rating shall be carried out as per extant guidelines and decisions
will be taken accordingly.

CIRCULAR REFERENCE
BCC/BR/95/225 Dated 07.07.2003
BCC/BR/95/264 Dated 06.08.2003
BCC/BR/96/022 Dated 16.01.2004
HO /BR/96/067 Dated 22.03.2004
BCC/BR/98/112 Dated 02.05.2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/99/310 Dated 12.10.2007
BCC/BR/99/321 Dated 25.10.2007
BCC/BR/99/322 Dated 29.10.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009
BCC/BR/95/162 Dated 07.05.2003
BCC/BR/96/022 Dated 16.01.2004
BCC/BR/98/112 Dated 02.05.2006

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BCC/BR/98/220 Dated 10.08.2006


BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/99/310 Dated 12.10.2007
BCC/BR/99/321 Dated 25.10.2007
BCC/BR/99/322 Dated 29.10.2007
BCC/BR/100/45Dated25.02.2008
BCC/BR/101/15 Dated 09.01.2009

Test tour understandings


Q1. Maximum loan which can be given to a defense pensioner is
a)
Rs.2.00lacs
b)
Rs.5.00lacs
c)
Rs.3.00lacs
d)
Rs1.00lacs
e)
Rs.0.50lac
Q2.To other pensioners --------- times of monthly pension amount may be given
as loan subject to max Rs.1.00lac
(a)
5 times
(b)
10 times
(c)
20 times
(d)
4 times
(e)
6 times
Q3. The maximum amount of personal loan is Rs.2.00lac subject to
------------times of gross monthly income in case of salaried person
(a)
5 times
(b)
10 times
(c)
20 times

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(d)
4 times
(e)
6 times
Q4. Who is not eligible for personal loan among the following persons?
(a)
Employee of a corporate
(b)
Partner of partnership firm
(c)
Salaried person
(d)
Self employed person
(e)
Insurance Agent
Q5.Loan for earnest money deposit to be repaid lump sum within a period of ---(a)
12 months
(b)
06 months
(c)
24 months
(d)
36 months
(e)
48 months.
Answers of the questions
Q
A

1
a

2
b

3
e

4
b

5
b

BARODA LOAN TO DOCTORS


NATURE OF FACILITY:
Demand / Term Loan and / or Overdraft
PURPOSE:
Development of clinic/ Clinic-cum-residence, Nursing Home, Pathological
Laboratory.
Purchase of medical / diagnostic equipments.
Setting up of operation theatre.
Purchase of car, ambulance, etc.
Purchase of office equipments viz. computers, fax, air-conditioners and
furniture etc.
Expansion/renovation/modernization of existing premises/Clinic/Nursing
Home.
Working Capital requirement including stock of medicines.
LIMIT:
Minimum: Rs. 50.000/Maximum:
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Rural/Semi-Urban: Rs. 15 lacs (sub limit for W/C Rs. 1 lac)


Urban/Metro:
Rs. 50 lacs (sub limit for W/C Rs. 3 lac)
For a loan amount of Rs. 5 lacs and above, the doctor / unit should have
been established for a minimum period of 3 years. However, in
deserving cases, Zonal Authority can relax this condition.
ELIGIBILITY:
Individuals, Proprietorship / Partnership firms, Private Limited companies
engaged in providing medical / pathological / diagnostic services to the society.
Applicants / Promoters should have recognized qualification in any branch of
medical science like MBBS / BAMS / BDS or any degree / course in
physiotherapy / radiology etc.
In case of Private Limited Company, the object clause should be verified for
having the objective of providing medical services to the community.
PENAL INTEREST:
2% p.a. on overdue amount for delayed period.

MARGIN:
Loans up to Rs. 5 lacs (where no collateral is stipulated): 25%.
All other cases: 15% of the cost of project / equipment.
Working Capital: NIL
ASSESSMENT OF CREDIT LIMIT:
Development of clinic / Clinic-cum-residence, Nursing Home, Pathological
Laboratory / Purchase of medical / diagnostic equipments.
Need based finance as per the project, subject to economic viability of the
same and generation of sufficient income to service the repayment obligations.
Working Capital: 10% of projected gross income.
While assessing credit requirement, the repaying capacity of the
prospective borrower based on expected income would be considered.
SECURITY:
Upto Rs. 5 lacs NIL
Hypothecation of assets created out of the loan.
Guarantee of a third party having adequate means i.e. having minimum net
worth equal to loan amount, shall be obtained.

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Above Rs. 5 lacs:


Tangible collateral Securities in the form of mortgage of land (excluding
agricultural land) and building, AND/OR
Pledge of NSCs, Govt. Bonds, Banks FDR / assignment of life insurance
policies etc.
Property to be mortgaged, NSCs, Government Bonds, our Bank,s Term
Deposits may be in the personal name of either Borrower, Proprietor,
Partner, Director or their Close relatives (viz. Spouse, parents, brother,
sister, son, daughter) who should stand as guarantor/ co-borrower.
Life insurance policies standing in the name of the
borrower/proprietor/partner director only.
Branch to obtain a valuation is to be done once in three years.
SECURITY MARGIN:
40% in case of immovable property. (The assets created out of the bank
credit may also be considered for the security.(BCC/BR/98/8 dated
07.01.2006)
15% on value of NSCs/KVPs/Govt. Bonds / RBI Relief Bonds/ surrender value
of LIC policies etc.
10% on Banks FDRs.

PERIOD:
Overdraft (for Working Capital)
12 months subject to annual review.
(For renewal of the account, declaration of annual income shall be obtained and
kept on record. Stock statement shall be obtained once a year as of last of
February every year.)
Demand Loan / Term Loan:
60 months including moratorium period of 6 months.
The amount shall be repayable in EMI commencing after one month of
completion of project/ maximum moratorium period shall be recovered as
and when debited in the account.
DSCR of 1.25 may be accepted for ensuring repayment capacity in case of
demand/ term loan.
DOCUMENTS:
In case of Term / Demand Loan:
1.
D.P. Note (as per the constitution of the borrower)
2.
Letter of installment with acceleration clause.

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3.

Hypothecation of assets i. e. furniture / office equipment / medical /


pathological equipments etc. purchased out of bank loan.
4.
Hypothecation of vehicle in case of finance for Ambulance / any other
vehicle.
5.
Authority to make payment directly to supplier, wherever applicable.
6.
Blank TTO Form (in case of finance for vehicle.)
In case of Overdraft:
1.
D.P. Note (as per constitution of Borrower)
2.
Letter of continuing security.
General:
1.
Draft letter of undertaking.
2.
Pledge / assignment / mortgage (whichever is applicable) of collateral
security.
3.
General form of Guarantee, wherever applicable.
4.
Undertaking to deal exclusively with our Bank.
5.
Other documents as per constitution of the borrower and terms and
conditions of the sanction.
DISBURSEMENT OF LOAN FOR SETTING UP OF CLINIC, PURCHASE OF
VEHICLE / EQUIPMENT / FURNITURE etc.
Outright purchase of premises for clinic/ nursing home, ready for
possession- Disbursement in one installment directly to the seller.
Construction of clinic / house/ laboratory/ drug store/ nursing home etc.three to four stages after physical verification depending upon the
progress of construction.
Payment can be made either to the builder directly or to the borrower
subject to verification of bills/ money receipts/ invoices etc. or
certificate issued by approved Valuer / Architect certifying the progress
of the work and the estimated expenditure having incurred therefore, as
the case may be.
For vehicle / equipment/ machineries directly to suppliers, wherever
possible.
CLASSIFICATION OF ADVANCES UNDER PRIORITY SECTOR:
The advances under the product may be classified and reported under Priority
Sector as per norms/ guidelines of Bank/ Reserve Bank of India from time to
time.
OTHER CONDITIONS:

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1.
2.

3.

4.

5.
6.
7.

8.

1.

Borrowers to route the income through their Overdraft/ Current A/c (In
case of loan) with the branch.
If Government Bonds/ National Saving Certificates / Life Insurance
Policies / Bank Deposits are offered as security, banks extant
guidelines/norms to be followed for noting / registering the lien /
assignment.
Borrowers will not be considered for financial assistance both under this
scheme as well as under our usual scheme of financing Professional & Self
Employed persons.
However, existing loan accounts of Self Employed & Professional persons
who are eligible under this scheme can have the facilities transferred to
this scheme.
Inspection of securities to be carried out once in a year and inspection
report is to be kept on record.
Pre-sanction inspection to be conducted and report to be kept on record.
Obtaining of financial statements i.e. Balance Sheet and profit & Loss
account is dispensed with. However, to determine eligible loan amount
declarations about annual sales/ income supported by Returns /
Assessment of Sales Tax / Service Tax/ Income tax etc. be obtained and
kept on record.
Where security is in the form of our Banks FDR, the same should be
appropriated in case of default in servicing interest for one quarter and
account getting classified as NPA.
Branch to endeavor to display banks name as financier from publicity angle.

INSURANCE:
Vehicles / Property mortgaged should be got insured as per banks norms.
Obtaining Insurance against the immovable assets created out of bank loan
shall also be a condition for sanction of the facility. However, branches
may counsel their borrowers to have their machinery/ equipment/
inventory insured at their cost, in their own interest.
OTHER PROVISIONS:
Request of Doctors for car and clean loans may be considered under our
existing products i.e. Baroda
Car Loan, Baroda personal, as per the terms and condition of the products.
A doctor may avail more than one advance (i.e. car loan, clean loan including
loan under this product,
however, while considering car / clean loan it should be ensured that total
deductions including the proposed EMI should not exceed 70% of gross
monthly income.

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CIR CULAR REFERENCE


BCC/BR/99/310 Dated 12.10.2007
BCC/BR/99/321 Dated 25.10.2007
BCC/BR/99/322 Dated 29.10.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009

Test your understandings


Q1. In loan to doctors up to what amount collateral security can be waived;
a)
Rs.2.00lacs
b)
Rs.5.00lacs
c)
Rs.3.00lacs
d)
Rs10.00lacs
e)
It cannot be waived
Q2. The minimum amount which can be sanctioned under the scheme of loan to
doctors.
(a)
Rs.0.50lacs
(b)
Rs.1.00lacs
(c)
Rs.2.00lacs
(d)
Rs5.00lacs
(e)
No minimum limit
Q3. Minimum D.S.C.R which is to be accepted in loan against doctors above
Rs.5.00lacs
(a)
1.25
(b)
1.75
(c)
2.00
(d)
2.50
(e)
4.00

Q4. If in loan against doctors property is being given as collateral security


whether we consider any margin against value of property (v.o.p) also, if so what
is that

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a)
b)
c)
d)
e)

No margin ;100% of v.o.p


Yes;25% of v.o.p
Yes;40% of v.o.p
Yes;60% of v.o.p
Yes; 50% of v.o.p

Q5.For loan of Rs.5.00lacs & above to a doctor ,his unit should have been
established since last ----------.
(a)
03 years
(b)
06 months
(c)
1 year
(d)
2 years
(e)
No such condition

Answers of the Questions

Q
A

1
b

2
a

3
a

4
c

Baroda Loan against Securities


Loan against NSC
PURPOSE:

For Productive purpose


For meeting the contingency needs of personal nature.

ELIGIBILITY:

Must be a Indian resident


Age - 21 years and above

LIMIT:

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5
a

Minimum Amount :

Demand Loan Rs. 3,000/


Overdraft
- Rs. 20,000/Maximum Amount :

For Public
- No ceiling

For Staff
- 5 times of gross salary

RATE OF INTEREST:
Loan: Base Rate + 3.50% or 0.50% over rate of interest on NSC
whichever is higher
Over draft: Base Rate+ 4% or 0.75% over NSC rate which eve is
higher
In case of staff - 0.5% over NSC rate
Weight age average method is applied if NSCs on different interest rates.
Concession in rate of interest on loans/overdrafts is available as under
Loans
Overdrafts
< Rs. 1 crore 2% over Base Rate
2.5% over Base Rate
> Rs. 1 crore 1.75% over Base Rate 2% over Base Rate

MARGIN:

Public :

15 % of face value of NSC, if residual maturity period is less than


3 years.

20 % of face value of NSC, if residual maturity period is 3 years


and above.
Staff :

10 % of face value

PROCESSING CHARGES:

Rs. 100/- flat + out of pocket expenses and actual conveyance charges +
service tax, Nil for staff.

REPAYMENT PERIOD:
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Loan :

Option I Repayment in maximum 35 EMIs or within the maturity


period, whichever is less.

Option II Repayment of principal with interest, at the time of


maturity out of proceeds of the instrument subject to a provision
that in such cases the margin would be minimum 20 %.
Overdraft :

Till maturity of the security. In case of overdraft, if the credit


turnover in the account in the preceding month is not adequate to
cover the interest debited, and then interest debited in the
account is to be recovered separately.

Subject to review annually

SECURITY:

Pledge of duly discharged NSCs

Lien on NSCs to be noted with the issuing Post Offices.


OTHER CONDITIONS:

NSCs of only 8th series are in vogue (since 8.5.1989).


Memorandum for granting / recommending advance against Certificates
should be prepared in the prescribed format
Advance to third party is not permitted
Advance should be disbursed only after getting the Banks lien noted.
A representative of the bank to be sent to Post Office for this purpose
and the borrower must not be entrusted for this purpose in any
circumstances.
While fixing rate of interest weighted average method is to be applied in
case of consolidated limit to one borrower against securities where
interest rates are different
It has been decided by our Bank to levy the charges for deviations
(financial / non financial) @ Rs. 3000/- per deviation with maximum of Rs.
10,000/-.

LOAN AGAINST KVP


PURPOSE:

For Productive purpose


For meeting the contingency needs of personal nature.

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ELIGIBILITY:

Must be a Indian resident


Age - 21 years and above

LIMIT:

Minimum Amount :

Demand Loan Rs. 3,000/


Overdraft - Rs. 20,000/ Maximum Amount: Up to Rs. 1.00 lac by Branch Head & above Rs. 1.00 lac
by Regional Head.

RATE OF INTEREST:
Loan: Base Rate + 3.50% or 0.50% over rate of interest on KVP whichever
is higher
Over draft: Base Rate+ 4% or 0.75% over KVP rate which eve is higher
MARGIN:

Public :

15 % of face value of NSC, if residual maturity period is less than


3 years.

20 % of face value of NSC, if residual maturity period is 3 years


and above.

10% of face value in case of staff.

PROCESSING CHARGES:

Rs. 100/- flat + out of pocket expenses and actual conveyance charges +
service tax, Nil for staff.
REPAYMENT PERIOD:

Loan :

Option I Repayment in maximum 35 EMIs or within the maturity


period, whichever is less.

Option II Repayment of principal with interest, at the time of


maturity out of proceeds of the instrument subject to a provision
that in such cases the margin would be minimum 20 %.

Overdraft :

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SECURITY:

Till maturity of the security. In case of overdraft, if the credit


turnover in the account in the preceding month is not adequate to
cover the interest debited, and then interest debited in the
account is to be recovered separately.
Subject to review annually

Pledge of duly discharged KVPs


Lien on KVPs to be noted with the issuing Post Offices.

OTHER CONDITIONS:

Memorandum for granting / recommending advance against Certificates


should be prepared in the prescribed format.
Advance to third party is not permitted
Advance should be disbursed only after getting the Banks lien noted.
A representative of the bank to be sent to Post Office for this purpose
and the borrower must not be entrusted for this purpose in any
circumstances.
While fixing rate of interest weighted average method is to be applied in
case of consolidated limit to one borrower against securities where
interest rates are different.
It has been decided by our Bank to levy the charges for deviations
(financial / non financial) @ Rs. 3000/- per deviation with maximum of Rs.
10,000/-.

LOAN AGAINST LIFE INSURANCE POLICIES


PURPOSE:

For Productive purpose


For meeting the contingency needs of personal nature.

ELIGIBILITY:

Must be a Indian resident


Age - 21 years and above

LIMIT:

Minimum Amount :

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Demand Loan Rs. 3,000/


Overdraft
- Rs. 20,000/Maximum Amount : No ceiling

RATE OF INTEREST:
LOAN: Base rate + 3.50%
OVER DRAFT: Base rate + 4%
MARGIN:

15 % of surrender value, if the insurance policy is maturing within a


period of less than 3 years.
20 % of surrender value, if the residual maturity period is 3 years and
above.

PROCESSING CHARGES:

Rs. 100/- flat + out of pocket expenses and actual conveyance charges +
service tax, Nil for staff

REPAYMENT PERIOD:

LOAN: Repayment in maximum of 60 EMIs or within the maturity period


whichever is less subject to availability of stipulated margin.
OVERDRAFT : Till maturity of the security. In case of overdraft, if the
credit turnover in the account in the preceding month is not adequate to
cover the interest debited, and then interest debited in the account is to
be recovered separately. Reviewed annually.

SECURITY:

Assignment of Life Insurance Policy, in force for more than 3 years, in


Banks favour.
Standing instructions from the borrower to pay the premium on the
policy, as and when they fall due to the debit of his savings bank /
current / overdraft A/C.
The branch to obtain last premium paid receipt and keep on record.
Policies which restrict its assignment should not be accepted.

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other conditions:

Facility may be sanctioned by the sanctioning authority up to fund based


lending powers for sanctioning advances against pledge of Govt. securities
on merits, taking into account the purpose of advance and repayment
capacity of the borrower.
Life Insurance Policies issued by private insurance companies can also be
accepted as security for considering advances under this scheme.
Advance to third party is not permitted.
Policies which are not to be accepted for advance :

Whole Life Policies.

Policies issued under Married Womens Property Act, 1874, wherein


nomination will be automatically cancelled by a subsequent transfer
or assignment.

Policies assigned to a minor.


It has been decided by our Bank to levy the charges for deviations
( financial / non financial ) @ Rs. 3000/- per deviation with maximum of
Rs. 10,000/-.

LOAN AGAINST RELIEF / GOVT. BONDS


PURPOSE:

For Productive purpose


For meeting the contingency needs of personal nature excluding
speculative purpose.

ELIGIBILITY:

Must be a Indian resident

Age - 21 years and above


LIMIT:

Minimum Amount :

Demand Loan Rs. 3,000/-

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Overdraft
- Rs. 20,000/Maximum Amount : No ceiling

RATE OF INTEREST:
LOAN: Base rate + 3.50%
OVER DRAFT: Base rate + 4%
MARGIN:

15 % of face value, if residual maturity period of Bond is less than 3


years.

20 % of face value, if the residual maturity period of Bond is 3 years and


above.
PROCESSING CHARGES:

Rs. 100/- flat + out of pocket expenses and actual conveyance charges +
service tax, staff - Nil
REPAYMENT PERIOD:

Loan :
Option I Repayment in maximum 35 EMIs or within the maturity period,
whichever is less.
Option II Repayment of principal with interest, at the time of maturity
out of proceeds of the instrument subject to a provision that in such
cases the margin would be minimum 20%.
Overdraft :
Till maturity of the security. In case of overdraft, if the credit turnover
in the account in the preceding month is not adequate to cover the
interest debited, then interest debited in the account is to be recovered
separately. Reviewed annually

SECURITY:

Pledge of relief bond.


Blank transfer deed.
Notice to the Public Debt Office of RBI / Designated bank who issues
Bonds.

OTHER CONDITIONS:

Facility may be sanctioned by the sanctioning authority up to fund based


lending powers for sanctioning advances against pledge of Govt. securities

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on merits, taking into account the purpose of advance and repayment


capacity of the borrower.
Advance to third party is not permitted.
Advances should be made against Bonds which are eligible for bank
finances, such as 6.5% RBI Bond 2003, 7% savings Bond 2002 etc.
It has been decided by our Bank to levy the charges for deviations
(financial / non financial) @ Rs. 3000/- per deviation with maximum of Rs.
10,000/-.

Test your understandings


Q1. Maximum amount of loan against N.S.C a staff can avail
a)
Rs.1.00lac
b)
Rs.2.00lac
c)
Rs.3.00lac
d)
Staff can not avail
e)
5 times of gross salary
Q2. What is the maximum ceiling to the customer for availing loan against
NSC/KVP/LICI policy
(a)
Rs.15.00 lacs
(b)
Rs.100.00lacs
(c)
Rs.200.00lacs
(d)
Rs.50.00lacs
(e)
No such ceiling.
Q3. The maximum amount of loan which a Branch head can sanction against

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K.V.P.
(a)
As per M.D.P
(b)
Rs.1.00lacs
(c)
Rs.5.00lacs
(d)
Rs.20.00lacs
(e)
No such ceiling.
Q4.While considering loan against security, against which security a term loan
(repayment more than 35 months) can be given,
(a)
N.S.C
(b)
K.V.P
(c)
L.I.C.I Policy
(d)
Relief Bonds
(e)
Govt Bonds.
Q5. The minimum amount of Demand loan which can be
sanctioned in loan against security
(a)
Rs.20000
(b)
Rs.3000
(c)
Rs.50000
(d)
Rs.25000
(e)
Rs.1.00lac
Answers of the questions
Q
A

1
e

2
e

3
b

4
c

BARODA SALARY ADVANTAGE SAVINGS ACCOUNT

PRODUCT NATURE:
Savings Bank Deposit within built feature of OD as per eligibility.

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5
b

TARGET GROUP: Salary Accounts


MINIMUM:
All branches irrespective of area classification can open accounts with zero
balance. There is no minimum balance requirement in the account and as such no
service charges shall be levied towards this.
MAXIMUM AMOUNT:
There shall be no ceiling on the amount to be deposited and credit balance in
the account.
SPECIAL FEATURES OF THE PRODUCT:
The branch SHALL offer Overdraft facility (Clean/unsecured) to employees
who fulfill the eligibility criteria to meet out their emergent short-term family
needs.
ELIGIBILITY CRITERIA:
Regular Employees of State / Central Government, Public Sector
Undertakings, Semi government Organization, State / Central Govt.
Corporations, Urban Development Authorities, Educational Institutions,
Universities, MNCs, reputed Public Ltd Companies with minimum one year
service with the organization.
Employees of Private Limited Companies may be considered by Regional
Authorities on selective basis after ascertaining their standing and
banking relationship with us, if any.
Minimum age of 21 years.
Minimum take home Salary should not be less than Rs. 5000/-.
Maintaining satisfactorily conducted salary account with the Bank at least
for three months.
OVERDRAFT LIMIT:
90 % of net salary of average of last three months subject to Maximum of Rs. 1
lac.
INTEREST RATE & PROCEDURE FOR APPLICATION:
On Credit Balance: As per savings bank account rules.
Base Rate + 5.5%
PROCESSING
&
DOCUMENTATION
No.BCC/BR/99/321 dated 25.10.2007
PERIOD:
12 months, subject to annual review.

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CHARGES:

Asper

Circular

SECURITY:
Third party guarantee shall be obtained. Cross guarantee may be accepted.

DOCUMENTS:
D.P. Note.
A single document shall be obtained from the customer
General form of Guarantee.
DOCUMENTS TO BE SUBMITTED BY APPLICANT:
Application Form.
Employers Certificate (Form No. 135 and 117-A are dispensed with.)
LIQUIDATION OF OVERDRAFT:
The account is to be brought into credit once in 60 days.
OTHER CONDITIONS:
The facility is to be offered to the employees of such organizations, which
are financially sound and paying the salary to its employees regularly.
The Conduct of the salary account and other loan accounts is to be
satisfactory.
Employee should not be under suspension.
After sanction of facility, the Branch to monitor the accounts by verifying
the credit of salary in the accounts each month.
All overdrafts in such savings bank account shall be reported in the weekly
FORM 153 along with balance in other overdraft accounts, as being done
in the case of TODs/ODs in current accounts.
DISCRETIONARY LENDING POWERS:
The branches may consider the proposals falling within their lending powers for
unsecured advance as per grade/scale of the Branch Head. Any proposal beyond
their power shall be referred to next authority.
SANCTION OF FACILITY:
The branch should scan salary savings bank accounts wherever the salary is
being credited since last three months and the conduct of the account is
satisfactory. The Branch Manager should satisfy himself about the
financial soundness of the employer before considering the facility.
No detailed sanction of the proposal is required to be prepared. Form. No.
117-A on borrower/guarantor need not be prepared. Simplified

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sanction memo is to be used. Reporting for PSR purpose to be done as


usual.
OTHER SALIENT FEATURES:
Other rules governing the Savings Bank a/c will also be applicable to such
account mutaitis mutandis.
Cheque-books shall be issued free of charges for routine requirement.
However, in case of bulk requirements such as giving PDCs for loans
availed/to be availed from other banks / institutions / Finance Companies,
normal cheque book charges shall be levied.
Staff members shall not be eligible to avail facility under the product.

CIRCULAR REFERENCE
BCC:BR:98:182 Dated 10.07. 2006
BCC/BR/98/220 Dated 10.08.2006
BCC/Br/98/360 Dated 30.12.2006
BCC/BR/99/47 Dated 15.02.2007
BCC/BR/99/108 Dated 05.04.2007
BCC/BR/100/45 Dated 25.02.2008
BCC/BR/101/15 Dated 09.01.2009

Test your Understandings


Q1.The
a)
b)
c)
d)

minimum salary for applying Baroda Salary advantage loan should be;
Rs.5000
Rs.10000
Rs.25000
Rs.2000

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e)
Rs.20000
Q2.Maximum amount of loan which can be given under the scheme of Baroda
Salary advantage
(a)
Rs.1.50lacs
(b)
Rs.1.00lacs
(c)
Rs.5.00lacs
(d)
Rs.2.00lacs
(e)
Rs.0.50lac
Q3. The Debit balance in Baroda salary advantage scheme should come in credit
at least once in ------------days.
(a)
30
(b)
45
(c)
60
(d)
90
(e)
Not required.
Q4. For availing facility of Baroda Salary advantage scheme the borrower
should maintain satisfactory salary account at least since----------months
(a)
03
(b)
12
(c)
06
(d)
24
(e)
18
Q5.Minimum length of service required for availing facility under Baroda salary
advantage scheme;
(a)
03years
(b)
12 months
(c)
06 months
(d)
02 years
(e)
18 months

Answers of the questions

Q
A

1
a

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b

3
c

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4
a

5
b

GUIDELINES ON VALUATION OF IMMOVABLE PROPERTIES


As per Book of Instruction Valuation of immovable property mortgaged to the
bank should be done once in every three years. Subsequent valuation should not
be entrusted to the same consultant / valuer who had valued it earlier. In
compliance to extant guidelines, the branches obtain fresh valuation of the
immovable properties charged to the bank under Retail Loans also once in 3
years irrespective of classification of the accounts.
Normally value of immovable property appreciates with the passage of time
while our exposure gradually declines due to regular repayment in case of
standard Retail Accounts. The customers who are regularly repaying their EMIs
and their accounts are classified in standard category as per prudential norms
of RBI, object to fresh valuation and the charges payable by them.
Considering above aspects, existing guidelines of valuation of immovable
properties charged to the Bank in Retail Loans have been reviewed and decided
as under:
1.
2.

3.

4.
5.

6.

Waive the condition of valuation of the properties once in three years, if


relative retail account is regular and classified as standard.
Advances granted for professional / business needs i.e. under our Baroda
Traders Loan, Baroda Loan to Doctors, Baroda Professional Loan
products, will be out of purview of modified guidelines. Valuation of the
property charged to the Bank for loans / overdrafts taken under these
products need to be got done once in 3 years as hitherto.
Wherever, advances are granted in the form of overdraft facility under
any retail
product, valuation of the property mortgaged to the bank
need to obtain once in every three years.
In conformity to banks extent guidelines, valuation in NPA a/cs will be
got done once in 3 years.
If any increase in existing exposure / additional limit / facility is
considered by extending the charge over the property, fresh valuation
will be taken hitherto, before taking additional exposure.
The branches will carry out periodical inspection as per extant guidelines.
If any
adverse developments are noticed during the inspection of the
property, valuation of the property is to be got done as usual.

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The modification as above in guidelines for valuation of properties mortgaged to


the Bank in Retail Loans will result in reducing the financial burden of the
customers and also workload of branches.

CIRCULAR REFERENCE
BCC:BR:98:327 Dated 24.11.2006

Credit Rating:
The rating in all retail lending schemes is to be done as per models as given
in circular no Bcc:Br:101:311 dt 12 th Oct 2009 & decisions are to be taken
accordingly.
Discretionary Lending Powers of Retail lending:
The detail guidelines are available in BCC:BR:102:350 December 22, 2010,for
DLPs under retail lending.

List of Important Circulars.(to be updated time to time)


Sr
No

Date of circular Contents Details

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Circular No

1.

10/07/2006

2.
3.

17/12/2007
26/02/2008

12/04/2008

5.

11/08/2008

6.

28/03/2009

12/10/2009

8.

28/01/2010

24/05/2010

10

29/07/2010

11

13/08/2010

12

20/09/2010

13

22/12/2010

14
15

28/12/2010
04/01/2011

16

13/06/2011

17

27/06/2011

18

20/09/2011

Baroda Academy

Baroda
Salary
advantage scheme
Baroda Aashray
Procedure to view on
line
ed
loan
application
Master circular Ed
loan
Master circular on
advance
against
security
Realignment
of
retail products
Credit rating model
for retail loans
Housing loan master
circular
Future
rent
receivables
Modifications
in
credit rating model
for retail loans
Education
loan
subsidy scheme
New
products
Baroda adv ag gold
& Baroda traders ag
gold
DLP for retail loan
products
Revised DLPs
Home loan margin
norms
Ed
loan
subsidy
scheme,clarifications
Introduction
of
checklist
on
compliance
of
guidelines in retail
loans
Repayment of retail
104 / 106

Bcc:br:98:182
Bcc:br:99:46
Bcc:br:100:29

Bcc:br:100:101
Bcc: Br: 100:223

Bcc:br:101:93
Bcc:br:101:311
Bcc:br:102:26
Bcc:br:102:143
Bcc:br:102:201

Bcc:Br;102:222
Bcc:br:102:264

Bcc:br:110:350
Bcc:br:102;357
Bcc:br:103:05
Bcc:br:103:163
Bcc:br:103:180

Bcc:br:103:269

19

30/11/2011

20

13/02/2012

21

14/02/2012

22

14/08/2012

23

24/08/2012

24

24/08/2012

25

28/09/2012

26

17/10/2012

27

05/11/2012

28

20/11/2012

29

03/12/2012

30

15/02/2013

Baroda Academy

loan of N,R,I by
close
relative
resident indian
Imp modifications in
Ed loan
Ed
loan
subsidy
schemeclarifications
Available
life
insurance for retail
loans
Modifications
in
AAA scheme
Master circular
Car loan
Master circular
Mortgage loan
Imp modifications in
Ed Loan
Clarifications
in
Mortgage loan
Modifications
in
Baroda adv ag gold
& Baroda traders
loan ag gold
Master circular on
Baroda traders loan
Imp modifications in
Ed Loan
Clarifications
in
retail loans & latest
rate of interest.

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Bcc:br:103:343
BCC:BR:104:61

Bcc:br:104:62

Bcc:br;104:289
Bcc:br;104:300
Bcc:br:104:301
Bcc:br:104:334
Bcc:br:104:364
Bcc:br:104:393

Bcc:br:104:404
Bcc:br:104:430
Bcc:br;105:55

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