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RETAIL LENDING

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Fees for Field credit investigation for Address Verification within the city including NCR
Region upto _____________ radius with reference to passport/voter ID/ration
card/PAN/Telephone bill/water bill/tax paid receipts - Rs.50/- (Residence / Business separately for each verification. Answer: 40 kms
Whenever, branch sanctions Retail Loans exceeding _____________ in a month in any one
Retail Scheme (Excluding loans granted under Tie-up arrangements) authorization from the
Circle Head is necessary. Answer: 25 numbers
A minimum of ___________ % of total marks to be secured by the prospective borrower to
be eligible for loan under retail lending schemes. Relaxation in the qualifying marks may be
considered up to a ceiling of ________ only (of the total marks), very selectively by the next
higher authority. Answer: 70% // 60%
The Prepayment penalty in Housing loan fixed rate scheme shall be accounted under
___________ (Interest Collected / Commission). Answer: Commission as it is treated as
other income.
Cut-off limit for forwarding copies of application / credit report to Circle has been enhanced to
Rs.5 lacs for all branches including VLB / ELB. Circles apart from ensuring prompt
submission and a diligent review of the related matters, should call for at least ___________ of
credit reports from each of the branches from the sanctions reported and subject them for a
meticulous review. Answer: 10%
Vehicles which are not older than ______ month/s from the date of their purchase / first
registration can be treated as new vehicle and the same can be financed on the terms and
conditions as applicable for purchase of brand new vehicles. However, in all such cases, our
borrower should be the first transferee. Answer: 1 month
No valuer in our panel can be entrusted with valuation assignments relating to a particular
branch continuously for more than __________ years. Answer: 5
Circle Head and above authorities at HO are authorized to permit reimbursement in Housing
Loan within their delegated sanctioning powers not exceeding 25% of the
_____________(Loan amount / Project Cost / Expenditure incurred in the previous 3
months) Answer: Loan amount.
The In Principle Sanction (Housing Loan) IPS-HL is valid for _______ months. Answer: Six.
For processing the documents and giving the IPS-HL the bank will charge a reasonable amount
of ______________ per proposal & it be paid up front. Answer: Rs.500/If the prospective borrower is unable to finalize the property and requests further time, the
IPS-HL may be extended selectively upto a further period of ______________ months by
collecting additional processing charges of ___________ upfront which is nonrefundable.
Answer: three // Rs.500/Which of the following is / are correct in the matter of extending Housing Loan to a borrower
aged more than 55 years (a) The borrower may avail the loan jointly with the earning member/s
of the family/close relative who is having sufficient repaying capacity subject to perfection of
security OR offer adequate collateral security (b) Margin - 25%. (c) Obtaining clearance from
the next higher authority. (d) All the above. Answer: (d)
Housing Loan for repairs/renovation _____ of the project cost - maximum of _________for
all areas.(Cir 232/2013) Answer: 75% // Rs 15 lacs.

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Compiled by CBOA Think Tank

No loans to be granted to partnership / proprietorship concerns against the primary security of shares and debentures.000/. wants to buy a second housing unit (house is 15 years old) by availing a Housing loan of Rs. upto ___________times of their NOF. repayment of HL should start one month after the completion of the house or _________ months from the date of first disbursement whichever is earlier. In the case of new accounts where salary account is stipulated as a condition. Answer: 15000/. appliances and equipments (needed especially by students for pursuing studies and vocational training).15. Answer: 36 28. Margin for this loan would be __________%. of the borrower after meeting the EMI should not be less than ___________ % under Canara Budget loan scheme for salaried class. Answer: 40% 26. As per NRI Housing Loan Scheme. NTH after meeting the proposed EMI under teacher loan should be _____________ % of the gross salary. Answer: 16 times / NHB 23.14. can be provided by the Bank. 2|Page Compiled by CBOA Think Tank . The maximum repayment period for housing loans is _______ years. (c) The maximum repayment period for this book loan is as applicable to Canara Budget (Salaried class) i. 22.HFCs (regulated by the NHB). 16. Repayment period for Canara Budget for non salaried class: ___________ equated monthly installments.95 lacs.// Rs. Which of the following is true? (a) Sanctioning Authority for loan to our bank employees for purchase of books under modified Canara Budget Scheme is Branch . Maximum quantum of loan under DIR is ________________ For SC/ STs. 15.20 lacs margin would be 25%). In the case of construction of a house. True or false? Answer: True. This restriction is given by ________. 18. (Even if loan is > Rs. Answer: 18 months. Maximum Quantum of loan under DRI Scheme for Solar Home Lighting System is _______________ per unit with _____________ as margin. branch to ensure credit of at least _____ month's salary of the borrower to his SB account before grant of loan. Answer: One 21. (b) The books should be hypothecated to our bank.15000/17. Answer: Rs. the maximum age of the borrower within which the loan should be repaid should not exceed ______ years. Minimum average net take home salary for the last three months.5000/. Old house means house older than 10 years. The assistance so given is independent of productive loan limit of _____________ eligible under the DIR scheme. It is 24 months only. A person above 55 years of age. 24.19. on interest charged on the admissible loan amount. Under the Rajiv Rinn Yojana for Housing the Urban Poor the interest subsidy will be ______________ % p. Answer: True // Not true // Not true. over the full period of the loan for construction or acquisition of a new house. 19. With extension of repayment period. Housing loans under DIR scheme can be given up to a maximum of ___________ only. Answer: Five.20000/-. Answer: 30 25.// Rs. Answer: Rs.// Nil.e. Differential Rate of Interest: Branches can assist the handicapped for acquiring aids. Braille typewriters for blind to the extent of their actual cost but not exceeding _____________ under DRI scheme.48 EMIs. Answer: 30 // 70 20. Answer: 25%. maximum loan quantum is __________ of annual gross income subject to NTH of _________ after proposed EMI and meeting the margin requirements (Cir 602/2013) Answer: Four Times // 40%.a.in . Date of Birth of house is the date of approved plan. 27.Charge. Housing Finance to the NBFC .

Answer: 10% 35.00 crore // One per cent. The maximum amount of capitation fee permissible for Mgt quota admissions is ________. 38.7200/-. Vidyasagar Education Loan Scheme: Financing Caution Deposit/ Building Fund/refundable deposit can be permitted up to _________ % of the total tuition fees for the entire course can be financed. SWF. Answer: Rs. Senior citizens are eligible for a right viz _____________ (Right of Recompense/ Right of Subrogation / None of these) . Guidelines regarding Mortgage of lease hold property for HL: (RL manual): Lease hold right with a minimum unexpired period of not less than ______ only can be accepted. Purchase of Ready Built House/Flat: It is absolutely essential for the branches to ensure that the original documents registered shall be lodged at the branch concerned. Answer: 10 days. // Nil. Sanction of education loan for proposals for admissions got under Management Quota are accorded by the ____________. 37. Answer: (b) + Residual life at least 20 years/Flat not more than 10 years old. For this purpose. Answer: Rs. Answer: Rs. 33. 32. Thrift society. 31.15000/42. 39. The _________(R /SU / U / Metro) branches to adhere to service area norms. (d) Flats the age of the flat more than 10 years. Employed persons whose annual income is less than ______________ may be given Education loans depending upon individual requirements and merits. FA. VPF. Gold Loans to Employees to meet escalation in the cost of construction of House: Loan Quantum: 10 months gross or ______________ whichever is less. The Canara Jeevan scheme is meant for financing Senior Citizens who have no other source of income. Answer: 95% 43. Answer: None of these. 40. Which of the following properties is/are acceptable under Canara Jeevan loan scheme? (a) Commercial property. Answer: No age limit //rural& semi urban.1. “Senior Citizen” means a person who is above ________ (55 // 58 // 60 //65) years of age as on the date of loan application. to meet their sustenance and also some of the genuine personal requirements. In Canara Jeevan.7200/. Takeover of Canara Trade Loans: A valid EMT should be created within _______ of clearance of the liability with other bank by us (concerned branch of our Bank). 3|Page Compiled by CBOA Think Tank . additional rate of ________ % may be charged over and above the applicable rate even if it exceeds the maximum rate. Answer: 3 months. It is Right Of Recession. Answer: 90 years. after completion of documentation 3 business days are given to senior citizen to cancel the transaction. Answer: Circle-Head. 34.29. ROI for Unsecured advances: In respect of unsecured advances of _______________ and above. branches should pursue the matter with the borrower / Registering Authority to ensure receipt of original registered sale deed within a period of _______. Answer: 60 30. (b) Self acquired and self-occupied as permanent primary residence. 41. It means. Gold Loans to Employees to meet escalation in the cost of construction of House: The Net take home pay after deduction of installments towards PF. Answer: 10 days.(If > Rs. loans can be granted provided they do not get salary during the period of study. (c) The residual life of the property less than 20 years. Takeover of liabilities from co-operative societies: A valid EMT should be created within ___________ of clearance of the liability with the society by us. Gold Loans to Employees to meet escalation in the cost of construction of House: Loan can be availed only after _________ % of housing loan is utilized but not fully utilized. Age Limit for Vidyasagar Education Loan is ____________ years.) 36.

AGM-VLB. 51. Part redemption permitted only once after clearance of _____________ % of the limit. Risk weight for Housing Loans upto Rs.Answer: Rs./DM-CO-CAC: Answer: 10 months gross – Max 5 lacs In CANARA BUDGET delegated power of . 63. LHV. Answer: 25% Risk weight for Housing Loans (Above Rs. Mgr/SM of VLBs/ELBs: Answer:6 months Gross Salary Max 3 lakh In CANARA BUDGET delegated power of CM-VLB. No holiday is permitted.75 lakh) having LTV upto _____________ Answer: 75%. 50. 49. 55. Demand/Term Loan / Overdraft facility for other than individuals for business purpose Maximum loan that can be permitted under CANARA CONSUMER LOAN.Answer: Rs. In CANARA BUDGET delegated power of In charge.Answer:200 Lacs Canara rent Sanctioning powers GM COCAC(Non Metro). 60. But this may be waived where the repayment is regular as per sanction terms.Answer:750 Lacs Canara rent Sanctioning powers EDCAC. 47. 1 lac. 61. 64.75 lakh) with a LTV Ratio upto 80% is _____________ Answer: 50%.44. 46.20 lakh with a LTV Ratio upto 90% is _____________ Answer: 50% Risk weight for restructured Housing Loans will be _____________ more than normal risk weight. 62. Answer: 60 // 50% Monitoring and Reporting of Housing Loans: (From RL Manual): The property mortgaged to the bank should be inspected within __________ month from the date of disbursement in the case of purchase of a ready built house / flat.Answer: 60% of the market value of the property Nature of Loan permitted under CANARA LAP.Answer: Above 1000 Lac. Eligible Quantum of Loan permitted under CANARA LAP.20./AGM-CO-CAC: Answer:10 months gross max 6 lac In CANARA BUDGET delegated power of . Repayment will commence after one month of granting the loan. 45. 56.Answer:500 Lacs Canara rent Sanctioning powers GMHOCAC. 52. 58. Answer: one // a year // a year.DGM/DGM-CO-CAC: Answer:15 months Gross max 8 lac In CANARA BUDGET delegated power of – GM-CO-CAC : Answer: 15 months gross – Max 10 lakhs Canara rent Sanctioning powers CM/DMCOCAC . 53.Answer: 50 Lac Canara rent Sanctioning powers AGM/AGMCOCAC. House property should be inspected once in ___________. Answer: 5% Gold Loans to Employees to meet escalation in the cost of construction of House Repayment: _______ EMIs. Tax paid receipt should be verified once in _______. etc (including proposed GL) should not be less than _________ % of the gross salary.Answer:100 Lacs Canara rent Sanctioning powers DGM/DGMCOCAC.Answer: Demand / Term loan for salaried /non-salaried individuals. 25 lacs Under CANARA HOME PLUS LTV ratio shall not be more than: Answer: 75% Maximum loan that can be permitted under CANARA LAP. Maximum loan that can be permitted under CANARA HOME PLUS.00 lakh upto Rs.Answer: Rs. 54. Risk weight for Housing Loans (Above Rs. 57. 48. 66. 59. 65. 4|Page Compiled by CBOA Think Tank . 10 CR.

Existing housing loan borrowers are permitted to switch over from higher rates of interest to the current card rates on payment of switch over fee of ______ % of the outstanding liability. 48 71. If the total number of Housing units is more than two.The net take home salary shall be 40% after all the deductions including the proposed EMI. 55%. Term Loan Max. 78. Ans: 60.50% of the loan amount with a Maximum of 20000/-. CANARA LAP quantum for Non salaried Class is: Ans: 3 years gross annual income.120 months._________ as per CIBIL report and beyond that subject to preclearance by the next higher authority Ans: Below Rs.per renewal for overdraft facility. Girls (Cir 120/2013) Ans: 60%. Branches/Retail Asset Hubs (RAH) shall take balancing of mortgage papers including that of closed loans and advances which are not yet delivered to mortgagors. 5|Page Compiled by CBOA Think Tank . as on _______________every year and also during Risk Based Internal Audit (RBIA).25.00 lakhs 75. What is the maximum quantum of Canara Home Loan Plus (Cir 498/2013) Ans: 10 months gross salary subject to a maximum of Rs. the exposure for the third unit Onwards to the same party has to be treated as _______________exposure as the borrower may be renting these housing units and the rental income would be the primary source of repayment.. 77. During the tenure of the Canara LAP. what is the maxium quantum of Canara Loan Against Property: (Cir 122/2013) : Ans: 60% of the market value of the property supported by valuation report from 2 approved independent valuers (valuation which is lower of the 2 will be reckoned for computation of limit).(cir 2/2013) 68. The maximum loan quantum shall not exceed 10 Crores. valuation of the mortgaged property shall be done once in ______ years (Cir 122/2013) Ans: 3 years 81. 73. As per IBA‟ s Revised Model Educational Loan scheme where the admission is purely based on the marks scored in qualifying examination – IBA had advised that the banks may fix cut-off marks (percentage) for loan eligibility.00 lakhs.. 79. In case of both salaried class and non-salaried class. 80. SC/STs. Circles to ensure that minimum ________ % of the sanctions/ disbursement under Education loan accounts are to be disbursed to students coming from rural areas(Cir 120/2013) Ans: 30% 74.25. For salaried class.(Cir 10/2013) Ans: 20th of February and August 69. (Cir30/2013) Ans: 1% 70. What are the processing charges on Canara LAP: Ans: 0. For non salaried.25000/.67. Maximum 2000/. Need based credit facilities can be considered by respective sanctioning authorities wherever Credit card overdues are below Rs. What is the repayment period norm for Canara LAP : Ans: Working Capital: 12 months renewal annually. once in a half year i. combined liability under existing HL and proposed “Canara Home Loan Plus” loan shall not exceed _____% of the value of the property at the time of sanction Ans: 75% (LTV not more than 75%) 76. the entire loan shall be repaid before the borrower attains the age of 70 years. As per Damodaran Committee Recommendations. What is the repayment period of Canara Home Loan Plus: Ans: To be repaid in 120 EMIs or left over repayment period for the existing Housing Loan whichever is less. However. 75% of 3 years average gross income of the applicant subject to a maximum of Rs. The maximum loan quantum shall not exceed 10 Crores. Demand Loan: in 36 months. What is the percentage of cut off marks for General Merit Students. Repayment of Canara Pension Loan (Cir 68/2013): To be repaid in ______ EMIs if the pensioner is below 65 years and with in _______ EMIs if the pensioner is above the age of 65. 50%. (Cir 109/2013) Ans: CRE (commercial real estate) 72.e..

e. In respect of Car loans to salaried class of borrowers. Manager of Small/medium/Large branches can sanction Canara Budget loan of : _____ months salary with maximum of Rs.10 lakhs 93. Loan upto Rs.50. Ans: 80%.1000/. Online Loan Application & Tracking System for Education/ Agriculture Loans – Branch has to ensure that all Education Loan applications are disposed as per norms ie with in a period of _________ (Cir 132/2013): Ans: 1 month 84.3 lakhs. What is Prepayment of penalty for takeover of Canara LAP loan by other banks: Ans: 1% of outstanding liability 83. may be included under the priority sector. where there is no salary tieup.to dealers sales executives. A minimum of ________ of total marks to be secured by the prospective borrower to be eligible for recommending ROI concession Ans: 80% 85. In order to prevent excessive leveraging.50. Model Loan Scheme for Vocational Education and Training – What is the repayment period (Cir 163/2013) Ans: Loan upto Rs.________ sanctioned and disbursed in that project of builder (Cir 160/2013) Ans: Three.000/-: 2 years. bank is now paying commission of 0.20.1 lakh: 2 to 5 years. Canara Vehicle Loans can be sanctioned by branches where RAH is functioning provided that branch NPA level under Canara Vehicle Loans is ________ % (Cir 159/2013) Ans: Below 4% 86. Housing Loans sanctioned by Banks for housing projects exclusively for the purpose of construction of houses to economically weaker sections and low income groups. 90% 94.00 Lacs 95.25% of HL amount with maximum of Rs. the total cost of which does not exceed Rs. RBI had issued guidelines on.1. 4% and above 6|Page Compiled by CBOA Think Tank .______ (Cir 115/2013) Ans: Rs. 88._______ (Cir115/2013) : Ans: 6 months salary with maximum of Rs. for loans below Rs. Ans.10 lakhs per dwelling unit will quality for Priority Sector Status.3. 20 lakh the LTV ratio should not exceed_____ %. For the purpose of identifying the economically weaker sections and low income groups.1. Bank loans to Housing Finance Companies (HFCs) for on-lending for housing up to Rs.4. Housing loans by commercial banks:The LTV ratio in respect of housing loans should not exceed______ % For small value housing loans i.1. subject to conditions(Cir 666/2013): Ans: Rs.000/. 90. For referring Housing Loan Proposal to our Bank.5lakh: 3 to 7 years. the family income limit of Rs.82.20 lakhs 91.________ per annum.000/92.________ per borrower.80 Lacs to ___________. Rs.per HL to Builders having tie up arrangements with our Bank. Circle Head may selectively permit such branches to exercise powers for sanctioning loans under the above scheme. irrespective of location is prescribed: Ans: Rs. 89. Loan upto rs. Manager in charge of Large Branch / Sr Manager of ELB/VLB can sanction Canara Vehicle Loan of Rs. Credit Approval Committee headed by Circle Head is empowered to permit lowering of minimum eligible quantum of Gross Salary from the current level of Rs. What are the service charges (referral fees) for sourcing business under Canara Vehicle Loans (Car Loans) to Car dealers and to Dealers‟ sales executives for sanctioned proposals(Cir 161/2013) Ans: @ 1% of loan amount to car dealers and Rs.00 crores 87. Ans: Rs. This is applicable only if minimum _____ housing loans or minimum Rs. In respect of branches having NPA level of_________. provided the interest rate charged to the ultimate borrower by the HFC does not exceed two percentage points above the lowest interest rate of the lending bank for housing loans.

The rating sheets are applicable for all retail lending loans other than. 99. Maximum quantum of loan under Canara Jeevan for flat is ____________. Canara Rent. Credit Information Report (CIR) from CIBIL is compulsory for Retail Lending loans – Ans: Priority Rs. Ans: Rs. 100.1 lakh and above.25 lakhs. Canara Trade.5 crores (Sub ceiling for working capital increased to Rs. 98. NP Rs. Canara Mortgage.96. Ans:Rs.50 lakhs-20% of Maximum Limit)).1 Crore and above (5 times of the Gross Annual Income) 97. Rs. Minimum loan amount under Premium Housing loan scheme is: Ans. Ans: Canara Pension. ~~~WISH YOU ALL THE BEST ~~~ 7|Page Compiled by CBOA Think Tank .2 lacs and above. Maximum loan quantum under Doctors Choice is____________. __________.