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Index

Artisan Credit Card 2009


SME Credit Card 2009
Swarojgar Credit Card 2009
Cyber Plus 2009
SME smart Score 2009
SME Credit Plus 2009
Stand by Line of Credit 2009
General Purpose Term Loan for SSI Sector 2009
Open TL Mfg. sector 2009
Open TL Services 2009
Rice Mills Plus 2009
Dal Mills Plus 2009
Arthias Plus 2009
Working Capital Finance to T & S sector 2009
Flexi Loan for Trade Finance 2009
SBI Shoppe 2009
SBI Shoppe plus 2009
Express Vendor Discount scheme 2009
Pre-shipment Express Vendor scheme 2009
Traders Easy Loan 2009
Finance to Restaurant
Standby Loan to Corporates for purchase of vehicles 2009
Autoclean 2009
Car Loans to SMEs 2007
Paryatan plus 2009
Transport plus 2009
Petro Credit 2009
WC for BPCL outlets
Doctor plus 2009
SBI Siemens Medical Equipment plus 2009
SBI Dental Equipment plus 2009
Tie up with Apollo Health & Life Style Ltd (Apollo Clinic)
School plus 2009
Semfex II 2009
Corporate Loan 2009
Rent Plus 2009
Working Capital Finance for Private Builders 2009
Loans from FCNRB funds
Construction Equipment Loan (CEL)
SME Care 2009
SME Help 2009
KYC Policy Revised
Smart Score
SME Checklist
Circulars
ARTISAN CREDIT CARD

1. Target Group : Artisans in the handicrafts sector and NOT covered by


the government sponsored loan schemes.
2 Eligibility : Ä Minimum score of 60% under the simplified
scoring model
Ä Preference to be given to artisans registered with
the Development Commissioner (Handicrafts)
Ä Thrust to be to finance in clusters and preferably
those supported by a Self Help Group (SHG)
Ä Existing borrowers with limits upto Rs.2 lacs and
satisfactory track record are also eligible.
3 Purpose : For working capital requirements as well as cost of tools
and equipment required for carrying out the
manufacturing process.
4 Type of facilities : A cash credit limit supported by a photo card which
indicates the limit and validity and a passbook

5 Quantum of Finance : Maximum of Rs.2 lacs. Assessment to be made under


Nayak Committee norms and will be based on the
simplified Scoring Model. The minimum score to be
obtained for being eligible for finance is 60%
6 Margin : Upto Rs. 25000/- NIL
Over Rs.25000/- and upto Rs.2 lacs 20%

7 Rate of Interest : Upto 50000/- 1.75% below SBAR


over Rs.50000/- 0.75% below SBAR

8 Security: :
- Primary Hypothecation of assets financed by the Bank
- Collateral
NIL Credit Guarantee Fund Trust for micro and small
enterprises covers loans under Artisan Credit Card. The
fees for the same will be reimbursed by the Development
Commissioner (Handicrafts, Ministry of Textiles, GOI
through their Regional Directors.
9 Processing fees As applicable to SSI segment but no fees to be charged
for review/renewal.

10 Repayment The portion of limit used for purchase of tools, etc. may
be made repayable in 3years. The rest of the limit will be
a revolving cash credit limit to be reviewed every year
but valid for 3 years subject to satisfactory conduct of
account.
11 Documentation : As per simplified SME documentation
12 Special features : Ä New units can also be financed
Ä Beneficiaries registered with the Development
Commissioner (Handicrafts) will be eligible for
insurance cover under group guarantee scheme
for which the premium will be paid by the
government and the beneficiaries in the ratio
60:40
13 Methodology and The beneficiaries of the scheme will be issued a photo ID
Operation of the card which contain name, limit and validity of the facility.
account A passbook will also be issued which will contain all
details of the beneficiary including address, and all
transactions will be recorded in it on an ongoing basis.

Product Highlights:

This scheme aims at providing adequate and timely assistance to the artisans to meet their credit
requirements both for investments as well as for working capital in a flexible manner and at
reasonable rate of interest.
The facility will be extended by way of a revolving cash credit and the limit will be fixed based on
the assessment made as per Nayak Committee norms. The assessment of the credit limit should
include the cost of tools and equipment required. A photo ID card and a passbook will be issued
and the limit will be valid for 3 years subject to annual review.

Marketing tips:
Ä The office of the Development Commissioner (Handicrafts) can provide a list of artisans
registered with them. Preference should be given to these registered artisans for giving
the artisan Credit Card.
Ä Clusters of artisans , especially those who are supported by a Self Help Group should
also be preferred for offering this product.
Ä The borrower need not furnish any financial data and assessment has to be made based
on the level of activity in the unit and other corroborative details.

FAQs
Ä Can existing borrowers be given this facility?
Existing borrowers under the Bank's are eligible for this scheme. However, beneficiaries
of other government sponsored schemes are not eligible for this facility.
Ä What is the margin to be stipulated for the credit limit?

Upto Rs.25000/-, no margin & over Rs. 25000/- , 20% margin has to be fixed.

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Index
SCORDING MODEL – SME CREDIT CARD / ARTISAN CREDIT CARD
Sl. Parameters Max. Marks Criteria Marks
No. Marks Scored
1. Age 3 18 – 30 3
31-45 2
46 & above 1
2. Owning House 3 Own (NM) 3
Own (M) 2
Not owning a house 0
3 Academic 5 Technical 5
Qualification Professional / PG 4
Graduates 3
Less than Graduate 2
4. Experience 4 More than 5 years 4
In line of trade 3-5 years 3
1-3 years 2
Less than one year 1
5. Loyalty 3 Dealing with SBI
(Deposit / Advances) More than 3 years 3
1-3 years 2
Less than one year 1
6. Spouse 2 Employed 2
Details Home-maker 0
7. Assessed for IT 2 Assessed 2
Not assessed 0
8. Has Life Insurance Policy 2 Yes 2
No. 0
9. Track record of repayment of 3 Prompt/No loan 3
Personal loan Irregular
10. Continuous profits 5 Last 5 years 5
Last 3 years 3
Last year 1
11. Sales show rising trend 5 Last 5 years 5
Last 3 years 3
Last year 1
12. Marketing 3 Tie-up arrangement in 3
operation
Ancillary 2
Others 1
13. TOL./TNW 5 Less than 1 5
1 to 2 4
2 to 4 3
More than 4 0
14. CA / CL 5 More than 1.33 5
1 to 1.33 3
Less than 1 0
15. DSCR 5 More than 2 5
1.5 to 2 3
1 to 1.5 2
Less than 1 0
16, Routing of sales turnover through the 5 100% 5
account 75% 4
50% 3
>50% 1
Total 60
N.B. In case any of the above parameters is not applicable, the scoring should be nomalised out of 60.
SME CREDIT CARD

1. Target Group : SSI units, tiny units, village industries, Retail traders,
professionals, self- employed, etc..
2. Eligibility : Customers of the following segments with a satisfactory
track record for the last two years :-
Ä Small industrial units
Ä Small retail traders
Ä Professionals
Ä self employed persons
Ä Small business enterprises
Ä Transport operators
3. Purpose : To meet any kind of credit requirements including
purchase of shop
4. Type of facilities : Cash Credit and/or Term Loan
5. Quantum of Finance : Maximum - Rs. 10lacs
6. Margin : 20%
7. Rate of Interest : As applicable to the market segment
8. Security: : Hypothecation of stock in trade, receivables, machinery,
- Primary office equipment
SSI – No collateral is to be insisted upon
- Collateral
SBF—For loans more than Rs.25000/- charge over
movable /immovable property/third party guarantee
9. Processing fees As applicable to SSI/SBF units
10. Repayment : a) The working capital component should be reviewed
every year provided the credit summation is not less
than 50% of the projected turnover. If the credit
summation is less than 50%, then a repayment
schedule should be fixed for the outstandings in
suitable monthly instalments.
b) The Term Loan component should be repayable in a
maximum of 5years in suitable instalments.
11. Documentation : As per the nature of the facility
12. Special features : Assessment A scoring model has been designed and
those units which score a minimum of 60% qualify under
the Scheme for which the working capital assessment
will be made as under :-
i) For small business, retail traders, etc.,
- 20% of their annual turnover OR
- 20% of turnover of the last 12 months in
their accounts, whichever is higher.
ii) For self- employed and professionals
- 100% of gross annual income as declared
in their income tax return
iii) For SSI units
- As per Nayak Committee norms ie.,
20% of annual turnover
Validity The limit will be valid for 3 years but is subject
to annual review
13. Methodology and : - The borrower will be issued a photo identity card
Operation of the indicating sanctioned limit and validity of the limit.
account - Cheque book to be marked as SME Credit Card
- Pass Book to be issued
- Submission of stock statements is waived but should
be obtained once in the last quarter to meet RBI
stipulations
- Brief opinion report should be recorded.

Product Highlights:
Small business units small industries in the tiny sector, retail traders, professionals and self
employed persons, requiring working capital needs are very often unable to provide the
elaborate financial data sought by banks from time to time for assessing their credit needs.
To obviate this difficulty faced by the small units in SSI & SBF sectors, the Bank has
designed this product which comprises of a photo identify card and a passbook which gives
details of the limit and validity of the facility. The assessment is based on a simple scoring
model and units which score 60% or more are eligible for this working capital cum term
loan facility upto Rs.10 lacs valid for a period of 3 years.

Marketing Tips
• This is a very user friendly product for any type of entrepreneur located in metro,
urban, semi urban or rural areas.
• Small SSI units, retail traders, self employed professionals, small business
enterprises etc., are the ideal target group.
• The limit being valid for 3 years for properly conducted accounts is a major plus point
of this product.
• Stock statements are not required to be submitted except once a year.
FAQs
Ä Can the limit be increased within the 3 year validity of the card ?

Yes. If the account has been conducted well and the unit requires a higher limit , then
the limit can be enhanced subject to a maximum of Rs.10lacs.
Ä Can a Kisan credit card holder be given this card ?
No. Any borrower is entitled to only one type of a credit card.

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Index
Application for SME / ARTISAN Credit Card

01. Name of the Unit

02. Constitution Proprietary Partnership


Company

03. Address Business

Telephone No.

04. Address Residential

Telephone /Mobile
No.
e-mail address
05. Age of 18-30 Years 31-45 Years
proprietor/Mng. 46 & above
Partner
06. Owning a House Own (Not mortgaged) Own

Not owning

07. Academic Technical Professional


Qualifications Graduate Undergraduate
08. Spouse Detail Employed Not working
09. Income Assessed Yes No
Under IT
10. Taken Life Insurance Yes No
Policy
11. Whether belongs SC/ST Minority Community ?
Male Female
Ex-Serviceman

12. SSI Registration Number PAN No. /


(as given by DIC) TAN
Business Details

13. Description of Activity:

Dealing with business


since:

14. Project Details Rs. In lakhs


Cost of Project Amount Means of Amounts
finance
Fixed Assets

Current Assets Working


Capital
Term Loan
Others

Total Total

15. Track Record


Year 1 Year 2 Year 3 Year 4 Year 5
Sales
Profit

16. Banking with SBI


Details of Deposit A/c Since
Details of Advance A/c Since

Loans Repaid

17. Marketing Arrangements : Tie ups Ancillary Units

Others

18. TOL CA
TNW CL

19. DSCR

20. Amount of Loan required


21. I / we certify
(i) all information furnished by me is true, correct and complete.
(ii) I / we have no borrowing arrangement for the unit with any Bank except as indicted in
the application.
(iii) There are no overdues / statutory dues against me / us
(iv) No legal action has been taken against me / us.
(v) The information may also be exchanged by you with any agency you may deem fit.
(vi) I / we shall furnish all other information that may be required by Bank in connection with
my application.
(vii) You, your representative or any other agency as authorized by you may at any time
inspect / verify my/our assets, books of accounts, etc., in our factory/business premises
as given above.
(viii) You may take appropriate safeguards / action for recovery of Bank’s dues including
publication of defaulter’s name in website / submission to RBI.
(ix) We further agree that my / our loan will be governed by the rules of State Bank of India
which may be in force from time to time.

Place:
Date: Signature of the Applicant.

Note: Documentary proof in the form of originals with self attested copies to be
produced for verification. Originals to be returned and attested copies to be filed along
with application.
SCORDING MODEL – SME CREDIT CARD / ARTISAN CREDIT CARD
Sl. Parameters Max. Marks Criteria Marks
No. Marks Scored
1. Age 3 18 – 30 3
31-45 2
46 & above 1
2. Owning House 3 Own (NM) 3
Own (M) 2
Not owning a house 0
3 Academic 5 Technical 5
Qualification Professional / PG 4
Graduates 3
Less than Graduate 2
4. Experience 4 More than 5 years 4
In line of trade 3-5 years 3
1-3 years 2
Less than one year 1
5. Loyalty 3 Dealing with SBI
(Deposit / Advances) More than 3 years 3
1-3 years 2
Less than one year 1
6. Spouse 2 Employed 2
Details Home-maker 0
7. Assessed for IT 2 Assessed 2
Not assessed 0
8. Has Life Insurance Policy 2 Yes 2
No. 0
9. Track record of repayment of 3 Prompt/No loan 3
Personal loan Irregular
10. Continuous profits 5 Last 5 years 5
Last 3 years 3
Last year 1
11. Sales show rising trend 5 Last 5 years 5
Last 3 years 3
Last year 1
12. Marketing 3 Tie-up arrangement in 3
operation
Ancillary 2
Others 1
13. TOL./TNW 5 Less than 1 5
1 to 2 4
2 to 4 3
More than 4 0
14. CA / CL 5 More than 1.33 5
1 to 1.33 3
Less than 1 0
15. DSCR 5 More than 2 5
1.5 to 2 3
1 to 1.5 2
Less than 1 0
16, Routing of sales turnover through the 5 100% 5
account 75% 4
50% 3
<50% 1
Total 60
N.B. In case any of the above parameters is not applicable, the scoring should be normalised out of 60.
APPRAISAL NOTE FOR SME CREDIT CARD
(Quantum of Finance Maximum Rs.10.00 lakhs)

PROPOSAL FOR SANCTION OF


1.
2.
CREDIT SCORE: /60. (Minimum 36) (as per annexure-I) Segment : SSI/SBF/C&I
1.Name of the unit
2 Constitution
Registration No. of the
unit.( if applicable)
3.Name of the Proprietor/
Partners /directors
4. Business Address

Phone/Cell No.
5.Nature of activity
6. Banking with us from
7.Details of Limits as on Existing Limits Proposed Limits
date. (Rs.in lakhs) CC(Hyp) CC(Hyp)
TL TL
LC/BG LC/BG
Total indebtedness
8.Brief History 1.
(Brief bullet points only) 2.
(on Management, 3.
products, marketing tie- 4.
up etc.,) 5.

9.Project Details Project Cost Rs.


(If term loan is required) Bank Loan Recommended Rs.
(As per assessment in annexure-III)
Debt /Equity-
10. Financial Position: (Rs in lakhs)
Years 1 2 3 4
(Act.) (Act.) (Est.) (Proj.)
Sales income
Profit
Profit/net sales
Tangible Net worth
TOL/TNW
Current Ratio
11. Working Capital Working capital limit of Rs. Has been assessed as
Requirement per the Projected turnover method (Nayak Committee
method) as per the workings as on annexure-II.
12. Adverse remarks
unattended in last
Inspection & audit report,
if any.
13. Whether borrower/
promoters figure as
defaulters in CIBIL report
for individuals.
14. Details of Associate
concerns. Any NPA’s
15. Terms & conditions
i) Primary Security Hypothecation of plant & machinery purchased out of
bank finance.
Hypothecation of all kinds of Stocks & receivables.
( cover period for receivables ----- days)
ii) Collateral Security
(not applicable if
sanctioned under
CGTFSI)
iii) Guarantee Personal guarantee of Sri.
(Indicate Net worth of Guarantors with date of
compilation of opinion reports)
iv) Margins WC TL
v) Documents As per SME documentation
vi) Submission of Stock To be submitted annually. Submit once in the last
Statements quarter of the year.
vii) Validity WC loan is valid for 3 years, but is subject to annual
review.
viii) Insurance Stocks/Equipment to be insured for full market value for
all possible risks with bank clause.
ix) Inspection Quarterly/Half yearly.
x) Repayment
xi)Rate of interest -------% above/below SBAR, effective rate;
xii) Upfront
fees/Processing Charges
xiii) Charges with ROC
(If applicable)

16. Recommendations
Recommended for sanction of Working Capital limit of Rs.
Term loan of Rs.
Total limit --------------
On the above terms and conditions.
Signature Appraised & Assessed by Sanctioned by
Name
Designation
Date
Enclosure:
Applicant’s application & others
Controlled by
Signature
Name
Designation, Date
Annexure-I
SCORING MODEL - SME CREDIT CARD
NAME OF THE UNIT:-
Sr.No. And Parameters Max Marks Marks scored Criteria Marks
18-30 3
1. Age 3 31-45 2
46 & above 1
Own(NM) 3
2. Owning House 3 Own(M) 2
Not owning 0
Technical 5
Professional/PG 4
3. Academic Qualification 5
Graduates 3
Less than grad. 2

More than 5 yrs 4


3-5 years 3
4. Experience in line of trade 4
1-3 years 2
Less than 1 yr 1
Dealing with SBI More than
3
3 yrs
5. Loyalty(Deposits /Advances) 3 2
1-3 years
1
Less than 1 yr
Employed 2
6. Spouse details 2
Home Maker 0
Assessed 2
7. Assessed For IT 2
Not assessed 0
Yes 2
8. Has Life Insurance Policy 2
No 0
9. Track Record of repayment of Prompt/No loan 3
3
personal loan Irregular 0

Last 5 years 5
10. Continuous Profits 5 Last 3 years 3
Last year 1

Last 5 years 5
11. Sales show rising trend 5 Last 3 years 3
Last year 1

Tie up arrngt. 3
12. Marketing 3 in operation Ancillary 2
Others 1

Less than 1 5
1 to 2 4
13. TOL/TNW 5
2 to 4 3
More than 4 0

More than 1.33 5


14. CA/CL(Current Ratio) 5 1 to 1.33 3
Less than 1 0
More than 2 5
1.5 to 2 3
15. D.S.C.R. 5
1 to 1.5 2
Less than 1 0
100% 5
16. Routing of sales turnover 75% 4
5
through the account 50% 3
<50% 1
TOTAL(NORMALISED TO 60) 60
NB: In case, any of the above parameters is not applicable, the scoring should be normalised out of 60.
Annexure-II

Name of the Borrower:

ASSESSMENT OF WORKING CAPITAL


I. For SSI, SBF and Retail traders:

Projected Turnover Method (Nayak Committee Method)


A. Estimated Sales for the Current year Rs.
B. Working capital required (25% of A) Rs.
Eligible Bank Finance (80% of B) Rs.
Bank finance Required Rs.

Working Capital Assessed/recommended is

II. For Self Employed and Professionals


50% of Gross annual income as declared in their Income Tax return.

III. Comments on Production aspects: (covering location advantages, availability of raw material
and other utilities like water, power, fuel, labour etc.

IV. Brief Comments on Marketing Aspects:


Annexure-III

Name of the Borrower:

Assessment of Term Loan:


1.Project Details
Rs.in lakhs.
Project cost Cost Margin (%) Margin amount Required
Bank Finance
Plant& Machinery
Land &Buildings
WC margin
Contingencies
Total project cost

Means of finance

Own funds
Borrowings from
friends and
relatives
Bank finance
others
Total means of
finance

Debt /Equity-

2. Term Loan Assessment: Rs.in lakhs


Years 1 2 3 4 5 6
(Act) (E) (E) (E) (E) (E)
Net Profit
Depreciation
Cash Accruals
Repayment obligations
(including Interest)
DSCR

Average D.S.C.R-

3. Details of machinery/equipment proposed to purchase:

4. Project implementation schedule:


Annexure-III-A
(for SRTO’s)

Name of the Borrower:

Term Loan assessment for Transport Operators (SRTO)


Cost of Vehicle/s Rs.
Borrower’s Margin ( %) Rs.
Term loan recommended Rs.
Assessment:
Earnings
1 Total No. of Kilometers to be run per day (estimated)/ No.
of trips per day
2 Earnings per Km / earning per trip
3 No. of working days in a month
4 Total monthly earnings 1 x 2 x 3 …..A
Expenses
5 Cost of Fuel per litre
6 Quantity of fuel required per month
7 Cost of fuel per month
8 Monthly Wages / batta for driver / cleaner etc
9 Maintenance
10 Repair
11 Insurance (annual premium / 12)
12 MV Tax (annual tax /12)
13 Interest on borrowings
14 Sustenance
15 Other expenses
Total Monthly Expenses (5 to 15)….B
16 Monthly surplus …. A - B
17 Monthly TL repayment
18 DSCR 16/17

Brief details of above workings:


ANNUAL REVIEW OF SME CREDIT CARD

PROPOSAL FOR REVIEW OF WC AND TERM LOAN SANCTIONED UNDER ‘SME CREDIT
CARD’ SCHEME.
1.Name of the unit
2 Constitution Proprietorship/Partnership/Private limited Company
3.Name of the
Proprietor/partners/
/directors
4. Business Address

Phone/Cell No.
5.Nature of activity
6. Date of Last
Sanction/review
7. IRAC Position as on
8. Present Position of Facility Limit DP O/S Irregularity if
Accounts as on date of any
review. CC
(Rs. In lakhs) TL
LC/BG
Total indebtedness
9. Conduct of WC a/c Annual Turn over estimated Rs.
(Rs. In lakhs) Annual Credit Summations in the account Rs.
(Atleast 50% should be routed in the account, other
wise sanctioning authority has to take a view on
continuation of facility)
Value of the account: Rs.
(Interest/Exchange/commission Booked)
Any Cross selling Products Booked :
(Give the name of the product booked)
10.a) Whether earlier
sanctioned terms complied
with?
b) Comments on non-
achievement of estimated
sales/profit.
c)No.of times the account
was irregular last year and
reasons.
11.Comments
(from risk angle)
(On other associates,
Competition, quality of
products, I&A comments,
CIBIL report for individuals
etc., and other relevant to
Risks. Bullet points only)

11. Recommendations
The Conduct of WC loan and Term loan has been reviewed and found satisfactory.
Recommended for continuation of Working Capital limit of Rs.

On the above terms and conditions as already set out in the original sanction dated—
(mention the date)

Appraised by Approved by
Signature
Name
Designation
Date
SWAROJGAR CREDIT CARD

1. Target Group : Self employed persons such as rickshaw owners,


fishermen, handloom weavers, service sector for
example, TV mechanics, and other micro-entrepreneurs,
and SHGs.

2 Eligibility : Individuals or group of individuals engaged in any viable


micro-enterprise. SHGs can also be provided with this
facility jointly with the entrepreneur.

3 Purpose : For meeting the investment needs as well as the working


capital requirements of self –employed persons

4 Type of facilities : Composite Loan which comprises of a Term Loan and a


revolving Cash Credit account. The borrower can avail
the entire component as a TL or for working capital only
as per the actual requirement,
5 Quantum of Finance : Rs. 25000/- per borrower as composite loan . This can
be increased to Rs.30000/- in deserving cases. The
initial investment in fixed assets and/or working capital
requirement /recurring expenditure are to be taken as the
basis for fixing the limit. The cash credit limit should be
fixed based on the operating cycle to the extent of the
available balance after fixing the TL component A
component not exceeding 20% of limit can be can be
built in for consumption purposes in view of the family's
contribution in the productive activity.
6 Margin : NIL

7 Rate of Interest : As applicable under SIB segment

8 Security: :
- Primary Assets acquired from Bank finance
- Collateral
NIL
9 Processing fees Waived

10 Repayment TL is repayable in 5 years in suitable instalments


Cash credit limit should be normally repaid in 12 months
and renewed annually based on the conduct of the
account and repayment of the Term Loan. If the CC
account remains continuously irregular for 90 days or
remains outstanding for 12 months, no further debits
should be permitted.
11 Documentation : As per simplified SME documentation

12 Special features : ¾ The facility should be covered under the Group


Insurance Scheme and the cost borne by the Bank and
the borrower equally
¾ BMs have absolute freedom to select the
borrowers for this product and there is government
subsidy for this scheme
¾ Withdrawal from the account will be through a
withdrawal slip or cheque.
¾ The SCC holder can be permitted to open a
Savings bank account.
13 Methodology and The borrowers will be issued a laminated credit card and
Operation of the a passbook. This will as an identity card and to record
account the transactions on an ongoing basis. The passbook will
contain the repayment schedule of the term loan also. A
passport size photograph of the borrower will be affixed
on the credit card and the borrower will have to produce
both the credit card and the passbook for withdrawal
from the account.
Self Help Groups(SHGs) can also be issued these cards
and they will be jointly and severally liable for the
amount.
As far as possible cluster approach should be adopted
for this product.

Product Highlights:

This is a product similar to the Kisan Credit Card. Self employed persons in activities other
than agriculture in urban and other areas are eligible to apply for this product for meeting
their investment or working capital requirements. The borrower will be provided with a
photo ID card and a passbook which have to be produced at the time of each withdrawal
from the account. SHGs can also be issued this card.

Marketing tips:

SHGs operating in the area of operation can be offered this product as it would have an element of
group guarantee in such a case and improves the chances of repayment.

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CYBER PLUS

1. Target Group : Educated youth with basic computer knowledge


especially in rural and semi-urban centres. Women
entrepreneurs are to be given preference

2. Eligibility : Educational qualifications –minimum SSC or 10th std.


passed
Age –between 18 and 45 years of age
Should possess basic computer knowledge
3. Purpose : To set up Internet/ Cyber cafes especially at rural and
semi- urban centres with potential for such a facility

4. Type of facilities : Composite Loan

5. Quantum of Finance : Rs.50000/-

6 Margin : Rs.9000/-

7. Rate of Interest : 0.75%below SBAR

8. Security: :
- Primary Hypothecation of the assets purchased from Bank
finance
- Collateral
NIL Can be brought under CGTSI scheme
9 Processing fees Waived

10. Repayment 36 to 40 monthly instalments

11 Documentation : As per SME documentation

12 Special features : Ä N-Logue, a non profit organisation comprising of


specialists from IIT Chennai has designed the
"CHIRAAG" kiosk to be located at rural centres to
provide e-governance and has entered into
agreements with various agencies to enable
these kiosks to provide communication,
education, information about agriculture, health
and other services.
The role of n-Logue is as under:-
Ä To identify, select and train the operators
Ä To provide logistic support and marketing
Ä Installation of equipment
Ä Provide internet connection
Ä Identifying usages and services
Ä To provide maintenance and insurance
Ä To interact with govt. departments to introduce
and enhance the scope of e-governance
Ä To monitor the assets and undertake marketing
of kiosk services
Ä To offer minimum buy back guarantee for the
assets
Ä The scheme is presently introduced in Chennai,
Mumbai, Hyderabad, Bangalore and
Ahmedabad Circles.
Ä The total project will be around Rs.59000/-for
purchase of PC, monitor, CorDET wireless
system, UPS, printer, Internet registration,
software, furniture, etc..

Product Highlights:
As a step towards building the technological gap between the urban haves and the rural have nots,
nLogue, an NGO comprising of members of IIT, Chennai, have come together to provide technical
and logistic assistance to rural entrepreneurs for setting up internet kiosks christened "CHIRAG" at
rural centres. The Bank, on its part, has evolved this product to provide finance for this project for
individual entrepreneurs in rural centres. This can also be taken up under the KVIC schemes which
will provide a subsidy of 25% to 30%.
Generation of income for this project will be through providing basic internet services, tie-up with
government departments for e-governance, for payment of statutory dues, for getting information
regarding crop yields, market prices, agriculture inputs, educational facilities such as coaching for
exams, obtaining results, marks lists, admission to professional college etc.
Marketing tips:
Ä Tie up with nLogue to market this product
Ä Identify trained youth especially in rural and semi-urban centres and refer them to
nLogue for further due diligence.
FAQs
Ä What are the margin requirements for this scheme?
The cost of the scheme has been estimated at Rs.59000/-. Of this, the maximum loan
permissible under this scheme is Rs.50000/- . The rest will be the margin which has to
be met either from own sources or from KVIC margin money scheme or any other
scheme.

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Index
SME SMART SCORE

1. Target Group Individually managed proprietary/partnership firm or closely held


public/private limited companies in the Small and medium industrial
and trading sector under C&I and SIB segments.

2. Eligibility Ä The chief promoter /chief executive should be below 66 years


of age
Ä The applicant must obtain a minimum score of 60% with a
minimum of 50% under each sub-head of Business and
Personal details and a minimum of 10% under collateral
details.
3. Purpose Ä Working Capital needs
Ä Acquisition of fixed assets
4. Type of Cash Credit / Term Loan
facilities
5. Quantum of SSI UNITS
Finance Rs.5lacs to below Rs.50lacs
20% of annual turnover for WC loan and 67% of project cost for TL
TRADE & SERVICES
Rs.5lacs to Rs.25lacs
15% of annual turnover for WC and 67% of project cost for TL.
6. Margin 25% for working capital component and 33% for TL component.

7. Rate of Special rates of interest are charged for facilities granted under SME
Interest Smart Score. These are furnished in the circulars issued from time to
time for interest rates applicable to SIB segment.

8. Security:
- Primary Hypothecation of stocks and assets financed by Bank
- Collateral
As per Bank's extant norms for WC and TLs
9. Processing As applicable to SSI /SBF / C&I units
fees
10. Repayment Ä WC loan to be reviewed annually and renewed once in two
years.
Ä TL not more than 5years excluding moratorium not
exceeding 6months
11. Documentation As per simplified SME documentation

12. Special Ä A simplified appraisal model (enclosed) has been


features developed to standardise the appraisal process.
Ä A special application form has been designed to capture all
the required information at one instance.
Product Highlights:

This product is designed to avoid delays in credit delivery due to cumbersome assessment
processes. A simple scoring model has been designed for which all the data required has to be
furnished at one go by way of an application form which has also been specially designed for this
product. Units which score a minimum of 60% are eligible for this product. This product can be
given to units in C&I, SSI and SBF segments for credit requirements between Rs.5 lacs to Rs.50
lacs( Rs.25lacs for T&S) based on the projected turnover and / or project cost. The loan quantum
should be a minimum of 20% of turnover and/or, 67% of project cost. If a proposal does not fit into
this model, it can also be considered on usual Bank's terms on merits.
Marketing tips:
Ä This product is especially useful in Trade advances and small industries
Ä All SMEs especially those which are individually managed proprietary concerns/
partnerships / private limited companies are the target group.
FAQs

Ä How to arrive at the quantum of loan for units engaged in trade for working capital
purposes?
While SSI units qualify for a limit of 20% of their projected annual turnover (Nayak
Committee norms), the trading units may be extended a working capital limit of 15 % of
their projected annual turnover subject to a maximum of 25% increase in the projections
over the turnover of the previous year.

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Index
SME SMART SCORE
LOAN APPLICATION FORM

The SME Smart Score is available ONLY if the answers to all the following questions are “Yes”

1. Whether the chief promoter / Chief executive is below 66 years of age?

2. Whether none of the promoters has defaulted in payment of loans / guarantee to the
lender/s?

3. Whether all the clearances including but not limited to environmental clearance for the
project has been obtained / satisfactory evidence of their being made available will be
provided?

4. Whether the borrower(s) belong to the area or their antecedents could be verified with
satisfaction?
SME SMART SCORE
LOAN APPLICATION FORM

Please fill up this form only if the answers to all the following questions are “YES”

1. Whether the chief promoter / Chief executive is between 18 and 65 years of age
2. Whether the promoters are not defaulters to the banks/ financial institutions
3. Whether all clearances for the project have been obtained
4. Whether the promoters belong to the area of operation of the branch and have satisfactory
references?

General :
Name of the Company / Firm _______________________________________________

Address (If factory and office are having different Addresses, Give the Address Nearest to the branch First)

Plot/Building/Plat Name and Number : _____________________________________________

Street Name _________________________________________________________________

Post Office __________________________________________________________________

City _____________________________________________ Pin _______________________

Telephone No. _______________________________ Fax : ___________________________

Address :

Plot/Building/Plat Name and Number : _____________________________________________

Street Name _________________________________________________________________

Post Office __________________________________________________________________

City _____________________________________________ Pin _______________________

Telephone No. _______________________________ Fax : ___________________________

Loan Applied for ______________________________________________________________

Purpose of the Loan ___________________________________________________________

When and how the loan will be repaid? ____________________________________________


PERSONAL DETAILS OF THE CHIEF PROMOTER / CHIEF EXECUTIVE
Name of the Chief / Promoter / Chief Executive :

Residential Address :

Plot/Building/Flat Name and Number : _____ ____________Street Name _______________

Post Office _________________________ City ___________________________________

Pin _______________________Telephone No. ________________Fax : ________________

What is your Date of Birth ? _______________

Let us know about your family :

i) Are you married ? Yes / No

ii) What is your spouse’s occupation?

iii) How many children do you have?

Your house : Owned Rented

What is your academic qualification?

Is it related to your line of trade? ____________________

Are you assessed for Income-Tax?

Your Account Number

How long are you having deposit account with SBI?

What would be the minimum balance in the account?

Do you have a life insurance policy?

I certify that all information furnished by me / us is true, correct and complete. I have no borrowing
arrangement for the company / firm with any bank except as indicated in the application form.
There are no over dues / statutory dues by me or the firm / company. No legal action has been
taken against me / firm / company. I shall furnish all other information that may be required by
Bank in connection with my application. The Information may also be exchanged by you with any
agency you may deem fit you, your representative of any other agencies as authorized by you may
at any time inspect / verify my / our assets, books of account etc. in our factory business premise
as given above. You may take appropriate safeguards / action for recovery of bank’s dues
including publication of defaulter’s name in website/ submission to RBI. I further agree that my loan
shall be governed by the rules of State Bank of India as may be in force from time to time.
Place Signature of Chief Promoter / Chief Executive
Date
BUSINESS DETAILS

Year of commencement of business

State the profit / loss for the last 3 financial years :

YEAR I YEAR II YEAR III

State the sales turnover for the last 3 financial years :

YEAR I YEAR II YEAR III

Tell about your factory premises :

Owned Rented leased for over 5 years

Tell us about your product

How do you plant to produce it?

Does the product require special know-how? If so, are you in possession of the know-how?
Whether your line of activity falls under priority sector ?

What are the raw materials required?

How do you plan to produce them? Are they available on credit? If so what are the terms of credit?

How do you plan to ensure the quality of your product? Any special steps being taken?

What about utilities like water, power etc. Please describe the requirements and how are they met?

Whether you need skilled labour? Please describe your plans for sourcing and employing skilled

labour?

Any special reason to locate your business at the present location? Is there any advantage in

procuring the raw materials locally? Is the local market enough to sell the finished product of your

firm? Any other advantage?


Manufacturing process in brief

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________

What is the level of competition for the product ? How do you plan to meet the competition?

Give the total outside liabilities for the last 3 years and your tangible networth.

PARAMETER YEAR I YEAR II YEAR III

Total outside liabilities

Tangible networth (including

loans from friends and relatives)

TOL / TNW

What is the quality of your receivables?

How many months’ sales do they represent?


Can you give an age profile of your receivables?

Age Amount Percentage to total


Less than 1 months old
1 to 2 months old
2 to 3 months old
More than 3 months old
Total percentage 100%

What is the quality of your finished goods inventory?

Are they sold against order as and when produced?

Are they kept in stock for long?

How many months’ sales do they represent?

What will be the time period between procurement of


raw materials to realization of sale proceeds?
Can you cut short the cycle without increasing your liability?

Give the details of cost and the means of finance for your project
Item Why do you need to What is the Cost of How do you proposed to
purchase the item? basis of your the item acquire/ procure the item
cost
Land
Building
Machinery

Others

Total cost
What are the means of finance?

Means Amount Give details*


From own sources
Bank loan
Friends and relatives
Others
Total
*Bank should be satisfied about your ability to bring in the margin.

Has the project been vetted by the consultancy cell of the Bank or consultants of repute? Give

details

______________________________________________________________________________

________________________________________________________

What is the repayment period you are looking for the term loan?
What will be the annual cash accruals?
What will be your liability towards payment of
installments and interest on term loan in a year?

Whether the cash accruals will be sufficient


to take care of the repayment liability?
Anything else you would like to tell about your business
What is the collateral you would be able to offer? GIVE DETAILS

Item Value Basis

TOTAL

Please tell us about your further plans : What is the level of sales you are projecting? Briefly
describe the basis for your projection

______________________________________________________________________________
______________________________________________________________________________
______________________________________________________

What is the level of receivables you are expecting in terms of months’ of sale?What is the level of
finished goods inventory you are expecting to maintain in terms of months’ of sale?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________
I certify that all information furnished by me / us is true, correct and complete. I have no borrowing
arrangement for the company / firm with any bank except as indicated in the application form.
There are no overdues / dues owed by me or the firm/company. No legal action has been taken
against me / us firm / company. I shall furnish all other information that may be required by Bank in
connection with my application. The Information may also be exchanged by you with any agency
you deem fit. You, your representatives of any other agencies as authorized by you may at any
time inspect / verify my fixed assets, books of account etc. in our factory /business premises as
given above. You may take appropriate safeguards/action for recovery of bank’s dues including
publication of defaulters’ name in web site/submission to RBI. I further agree that my loan shall be
governed by the rules of State Bank of India as may be in force from time to time.

Place : _______________ For and on behalf of the company

Date : _______________ Signature of Chief Promoter / Chief Executive


CREDIT SCORING CRITERIA

Name of the Company/ Firm :

Name of the Chief Promoter / Chief Executive : (In case of partnership concerns where the partners are
having equal stake the personal profile of the active promoters as declded by the concern could be taken)

1. Personal Details :

Sr. Parameters Maxim Marks Criteria Details of


No. um Scored Documents
Marks Verified
1. Age 5 18 to 24
4 25 to 49
3 50 to 59
1 60 to 65
2. No. of children 2 Up to 3
0 >3
3. Owning a house 5 Own
0 Not owning a house
4. Academic qualification 4 Professional
3 Graduate / P.G.
Matric

1 Below Matric

5. Experience in the line of 5 More than 5 years


trade 3 2 to 5 years
2 less than 2 years
6. Spouse details 1 Employed
0 Homemaker
7. Assessed for income-tax 2 Assessed
0 Not assessed
8. Deposit account with SBI 5 3 years and above
(minimum deposit should be 3 6 months to < 3
Rs. 10,000 in the period years
under review) < 6 months
2
9. Have life insurance policy 1 Yes
0 No
Marks scored 30
Minimum score should be 15 marks
Business Score :

2 A. For existing units which have not so far availed any loan from the Bank. If takeover from
another Bank, takeover norms, prescribed by the Bank are to be first evaluated and fulfilled.
Sr. Parameters Maxim Marks Criteria Details of
No. um Scored Documents
Marks Verified
1. Years in business 5 5 5 years & over
3 3 years to < 5 years
2 1 years to <3 years
2. Continuous net profits 5 5 Last 3 years
(before tax) 3 Last 2 years
2 Last year
3. Sales show a rising trend 5 5 Last 3 years
3 Last 2 years
4. Factory premises 3 3 Owned or over 5
year lease
0 Rented
5. Know-how 2 0 Specialized know-
how
2 Common knowledge
6. Line of activity 1 1 Priority Sector
0 Non priority Sector
7. Competition 4 4 Low
3 Medium
2 High
8. TOL/TNW (Quasi equity to 5 5 2 & below
be added to TNW and 3 >2 but upto 3
reduced from TOL) 2 >3 but upto 4
1 >4 but <5
9a. Quality of receivables 5 5 Up to 3 months of
sales
3 >3 but up to 4
months of sales
2 >4 months of sales
9b. Quality of finished goods 5 5 Upto 1 month of
inventory sales
3 >1 upto 2 months of
sales
2 >2 months of sales.
10. Repayment period 5 5 Upto 3 years
(Not applicable for only 3 >3 to 5 years
working capital loans) 2 > 5 years
11. Gross DSCR (not applicable 5 6 >2
for only working capital 3 Between 1.5 tand 2
loans) 2 < 1.5
Marks Scored 50/40
Items 10 & 11 are not applicable for working capital loans alone. In that case the score should be

normalized for 50 (marks scored / 40) x50) Minimum Score should be 25.
2B. For Greenfield Ventures :
Sr. Parameters Maxim Marks Criteria Details of
No. um Scored Documents
Marks Verified
1. Branch is in the know of 10 Yes
business ( includes cases
where the Project is 0 No
appraised by consultants of
repute)
2. Manufacturing / Servicing / 5 Yes
trading / process is well
known to applicant to 0 No
produce / service / trade the
required quality of the
product
3. Location advantage 2 Yes
0 No.
4. Availability of utilities 2 Easy
including labour 0 Ok
5. Firm’s capacity to sell the 5 Good
product at the price and
quantity. 0 OK
6. Line of activity 1 Priority Sector
0 Non Priority Sector
7. TOL / TNW (Quasi equity is 5 1 and below
to be added to TNW and 3 >1 upto 2
reduced from TOL) 2 >2 up to 3
1 >3
8a. Quality of receivables as per 5 Up to 3 months of
projections sales
3 More than 3 up to 4
months
2 More than 4 months
8b. Quality of finished goods 5 Up to 3 years
inventory as per projections 3 Above 3 to 5 years
2 Above 5 years
10. DSCR (not applicable for 5 >2
only working capital loans) 3 1.5 to 2
2 <1.5
Marks Scored 50 / 40

Minimum Marks : 25 out of 50.


3. Collateral Conditions :

Sr. Parameters Maxim Marks Criteria Details of


No. um Scored Documents
Marks Verified
1. Equitable Mortgage of 15 75% and over
Property : Value of property 12 50% to <75%
(If TDR or cash equivalent is 10 25% to <50%
offered as security multiply 5 <25%
cash equivalent by 2 and 0 Nil
add to the collateral value) /
loan amount (%)
2. Residential Property as part 5 Yes
of 1 0 No
Marks Scored 20

Minimum Marks are 10 (except in cases where Collateral should not be asked as per Bank’s

norms, the minimum mark will be Nil)


ASST GENERAL MANAGER/ CHIEF MANAGER: - FOR SANCTION

APPRAISAL MEMORANDUM UNDER SME SMART SCORE


Branch:
The proposal conforms to the extant instructions of the scheme. The scores
awarded under credit scoring criteria are as under

SEGMENT : C&I / SSI / SBF


SEGMENT MIN. SCORE MARKS SCORED
Personal Details 15/30
Business Details (or) 25/50
Greenfield ventures
Collateral Conditions 10/20
Total Score 50/100
(To be eligible under the scheme, the unit should get a minimum score of 60%
with a minimum of 50% under each sub-head)
1. PROPOSAL FOR
I. Sanction of
a.
b.
II. Approval for
c.
d.
III. Confirmation of
e.

1.1. Details of Credit limits Rs.in lakhs


Facility Existing Limits Facility Proposed Limits
CC(Hyp) CC(Hyp)
SME Credit Plus SME Credit Plus
TL TL
LC/BG (As sub LC/BG(As sub limit of
limit of CC(Hyp)) CC(Hyp))
Total limits Total limits

3.Name of the Borrower


4.Name of Proprietor
/Partners/Directors
5.Address
Factory

Office

6.Constitution Proprietorship/Partnership/ Private


Limited Company
ASST GENERAL MANAGER/ CHIEF MANAGER: - FOR SANCTION

APPRAISAL MEMORANDUM UNDER SME SMART SCORE


Branch:
The proposal conforms to the extant instructions of the scheme. The scores awarded under credit
scoring criteria are as under
SEGMENT : C&I / SSI / SBF
SEGMENT MIN. SCORE MARKS SCORED
Personal Details 15/30
Business Details (or) 25/50
Greenfield ventures
Collateral Conditions 10/20
Total Score 50/100
(To be eligible under the scheme, the unit should get a minimum score of 60% with a minimum of
50% under each sub-head)
1. PROPOSAL FOR
I. Sanction of
a.
b.
II. Approval for
c.
d.
III. Confirmation of
e.

1.1. Details of Credit limits Rs.in lakhs


Facility Existing Limits Facility Proposed Limits
CC(Hyp) CC(Hyp)
SME Credit Plus SME Credit Plus
TL TL
LC/BG (As sub LC/BG(As sub limit of
limit of CC(Hyp)) CC(Hyp))
Total limits Total limits

3.Name of the Borrower


4.Name of Proprietor
/Partners/Directors
5.Address
Factory

Office

6.Constitution Proprietorship/Partnership/ Private


Limited Company
7.Line of activity
8.Year of Incorporation
9.Banking with SBI since
10.IRAC Status
11.Details of Associate
Concerns/Family Concerns and their
Bankers
Any NPA’s among associates?
12.Date of last sanction
(not applicable for fresh exposures)

13. Position of the account as on (Rs in lakhs)


Facility Limit M.V A.V D.P O/S Irregularity if any

(Not applicable for new units)

14. Brief background & History :-( to be brief and in bullet points only)
(Comments on management, products, tie-up arrangement if any, quality
approvals/certifications etc)

15.Performance and financial indicators: Rs.in lakhs.


YR.BEFORE LAST CURRENT FOLLOWING
LAST YEAR YEAR YEAR
31 March Audited Audited Estimates Projections
Domestic Sales
Export Sales
Net Sales
Profit After Tax
PAT/ Net Sales (%)
Cash Accrual
Paid Up Capital
TNW
TOL/TNW (times)
Current Ratio
Comments on Financials ;( Brief bullet points only)

16.Term Loan:
Project Details Project Cost Rs.
Bank Loan Recommended Rs.
(As per assessment in annexure-III)
Debt /Equity

17. Working Capital Requirement:


Working capital limit of Rs.------ has been assessed for the year --- and Rs.----has been assessed
for the year -----, as per the Projected balance sheet method/traditional method as per the
workings as on annexure-II.
(After satisfactory review of the limits assessed for the first year, additional limits for the
subsequent year shall be released. However documents for the higher of the limits to be obtained
at the initial stage itself.)

18. Comments on conduct of Account: (covering irregularities, non-compliance, LC devolvement,


BG invocations, etc.):

Comments on Summations vis-à-vis sales


Period under review
Credit summations
Debit summations
Gross Sales
Opening Sundry Debtors
Closing Debtors
Comments:

19. Whether (a) the name(s) of the Individual/Directors appear(s) in RBI’s list of defaulters/RBI’s
list of willful defaulters & (b) the Individual/Directors name figures in ECGC’s caution list
PARTICULARS DATE POSITION
RBI Willful Defaulters list(Non-Suit Filed)Rs.25lacs and
above
CIBIL List(Suit filed) Rs.25 lacs and above
ECGC specific approval list

20. Comments on I&A and other audit reports, which have an impact on credit risk on the unit:, if
any:

Name of report Date of report Serious irregularities/


Adverse features
remaining unattended
Comments in last I&A report & its
present status
Company's audited Balance Sheet
(Qualifications)

21. If the unit has scored less than 60% marks in any of the individual parameters in SME Smart
Score, please comment critically on those parameters (even though the aggregate score may be
more than 60%)

22. Recommendations;
Recommended for sanction of Working Capital limit of Rs.
Term loan of Rs.
Total limit --------------

On the terms and conditions as set out in annexure-IV.


Appraised & Assessed by Sanctioned by

Signature
Name
Designation
Date
Enclosure:
Applicant’s application.& others
Statement of Credit Score arrived as annexure -I.

Controlled by

Signature
Name
Designation
Date
Annexure-I
CREDIT SCORING CRITERIA

Name of the Company / Firm :

Name of the chief promoter / chief executive :


(in case of partnership concerns, where the partners are having equal stake, the personal profile of
the active promoter as decided by the concern could be taken)

1. Personal details :

Sr. Parameters Maximum Marks Criteria Marks


No. marks Scored
1 Age 5 18 to 24 3
25 to 49 5
50 to 59 1
60 to 65 0
2 No.of children 2 Upto 3 2
>3 0
3 Owning a house 5 Own 5
Not owning 0
house
4 Academic qualifications 4 Professional 4
Graduate/PG 2
Metric 1
Below Metric 0
5 Experience in the line of trade 5 > 5 years 5
2 to 5 years 3
< 2 years 0
6 Spouse details 1 Employed 1
Homemaker 0
7 Assessed for income tax 2 Assessed 2
Not assessed 0
8 Deposit account with SBI 5 3 Yrs. & 5
(min. deposit should be above 2
Rs.10,000/- in the period 6 M to < 3 0
under review) Yrs.
<6M
9 Have life insurance policy 1 Yes 1
No 0
30
MARKS SCORED

Minimum score should be 15 marks


2. Business Score :

2.A For existing units which have not so far availed any loan from the Bank. If takeover from
another Bank, takeover norms, prescribed by the bank are to be first evaluated and fulfilled.
Sr. Parameters Maximum Marks Criteria Marks
No. marks Scored
1 Years in business 5 5 Years & 5
over 3
3 Years to < 1
5
1 year to < 3
2 Continuous net profits 5 Last 3 years 5
(before tax) Last 2 years 3
Last year 1
3 Sales show a rising trend 5 Last 3 years 5
Last 2 years 3
4 Factory premises 3 Owned or
over 5 years 3
of lease 0
Rented
5 Know-how 2 Specialised 2
Common 0
6 Line of activity 1 Priority 1
Sector 0
Non priority
7 Competition 4 Low 4
Medium 2
High 0
8 TOL/TNW (quasi equity to be 5 2 & Below 5
added to TNW and reduced > 2 but upto 4
from TOL) 3 2
> 3 but upto 4 1
> 4 but < 5
9 a Quality of receivables 5 Upto 3
months of 5
sales
> 3 but upto 4 1
months of
sales 0
> 4 months of
sales
9 b Quality of finished goods 5 Upto 1 month
inventory of sales 5
> 1 but upto 2
months of 1
sales
> 2 months of 0
sales
10 Repayment period (not 5 Upto 3 years 5
applicable for only working > 3 to 5 years 3
capital loans) > 5 years 0
11 Gross DSCR (not applicable 5 > 2 5
for only working capital loans 1.5 To 2 2
< 1.5 0
50
MARKS SCORED

Items 10 & 11 are not applicable for working capital loans alone. In that case the score should be
normalized for 50 (marks scored/40)*50
Minimum score should be 25

2B. For Greenfield ventures :


Sr. Parameters Maximum Marks Criteria Marks
No. marks Scored
1 Branch is in the know of 10 Yes 10
business (includes cases No 0
where the project is appraised
by consultants of repute)
2 Manufacturing/servicing/trading 5 Yes 5
process is well known to Mo 0
applicant to
produce/service/trade the
required quality and quantity of
the product
3 Location advantage 2 Yes 2
No 0

4 Availability of utilities including 2 Easy 2


labour Ok 0
5 Firm’s capacity to sell the 5 Good 5
product at the price and Ok 0
quantity
6 Line of activity 1 Priority 1
Sector 0
Non priority
7 TOL/TNW (quasi equity to be 5 1 and below 5
added to TNW and reduced > 1 upto 2 4
from TOL) Competition > 2 upto 3 3
>3 0
8a Quality of receivables as per 5 Upto 3
projections months of 5
sales
> 3 but upto 1
4 months of
sales 0
> 4 months
of sales
8b Quality of finished goods 5 Upto 1
inventory as per projections month of 5
sales
> 1 but upto 1
2 months of
sales 0
> 2 months
of sales
9 Repayment period (not 5 Upto 3 years 5
applicable for only working > 3 to 5 3
capital loans) years 0
> 5 years
10 Gross DSCR (not applicable 5 > 2 5
for only working capital loans 1.5 to 2 2
< 1.5 0
50 / 40
MARKS SCORED

Minimum Marks : 25 out of 50

3. Collateral conditions:

Sr. Parameters Maximum Marks Criteria Marks


No. marks Scored
1 Equitable Mortgage of 15 75% and over 15
property : 50% to <75% 10
Value of property (if TDR or 25% to <50% 5
cash equivalent is offered as <25% 3
security multiply cash NIL 0
equivalent by 2 and add to the
collateral value) / loan amount
(%)
2 Residential property as part of 5 Yes 5
1 No 0
MARKS SCORED 20

Minimum Marks are 10 (except in cases where Collateral should not be asked as per Bank’s
norms, where the minimum marks will be NIL)
Annexure-II

Name of the Borrower:

ASSESSMENT OF WORKING CAPITAL


I. For SSI, SBF and Retail traders:
Rs.in lakhs.
1.Projected Turnover Method (Nayak Committee Estimated Projected
Method) Ist year 2nd Year
a. Estimated Sales for the Current year
b. Working capital required (25% of ‘a’)
Eligible Bank Finance (80% of ‘b’)
Bank finance Required (A)

2.Assessment as per Traditional Method


Estimated Purchases in the current Year
Estimated Average Raw Material Holding at any time
(Calculated at cost of Purchases)
Estimated Average holding of Stock in process and
Finished goods at any one time
(calculated at cost of Production)
Estimated Average Receivable outstanding at any one time
Total Requirement
Less estimated average credit enjoyed on purchases
Less estimated average credit enjoyed on purchases
Less Other Sources like unsecured loans, plough back of
profits etc
Bank Finance Required (B)
Working Capital Assessed/recommended
A or B above which ever is higher i.e

II.For Self Employed and Professionals


50% of Gross annual income as declared in their Income Tax return.

III.Comments on Production aspects: (covering location advantages, availability of raw material


and other utilities like water, power, fuel, labour etc.

IV.Brief Comments on Marketing Aspects:


V. i) Assessment of EPC limits: Rs.in lakhs

Sr. No Particulars Estimated Projected


Ist year 2nd year
1 Estimated Exports
2 Exports - at cost
3 Lead time and usance period
(includes order period / manufacturing period etc.)
4 No. Of Cycles in a year
5 EPC requirement per cycle
6 Less:- Margin on EPC – %
7 Eligible Limit
8 EPC limit recommended
ii) Assessment of EBD limits:
Rs.in lakhs
Sr. No Particulars Estimated Projected
Ist year 2nd year
1 Estimated Exports
2
Exports on Usance bill basis
3 Usance period
4
Lead Time
5 No. of cycles in a year
6 Eligible EBD Facility
7 Limit requested by the unit
8 Limit recommended

iii) Brief Comments on the above limits:

VI. Assessment of Non fund based limits:

i)Assessment of LC limits:
Rs.in lakhs
Annual Raw Material purchases
Monthly Raw Material purchases
Monthly Raw Material purchases through LC’s @ % (A)
Average Usance Period (B)
Lead Time and transit period (C)
Total of ‘B’ and ‘C’ (D)
LC limits required (= A X D)
Recommended LC Limits
Assessment of BG limits:
Rs.in lakhs
Outstanding BGs as on
Add: BG’s required during the next 12 months, as under
1.Earnest Money deposit
2.Security Deposit
3.Advance Payment BG
4.Retention Money Deposit/Maintenance Guarantee
5. Guarantees on account of sales tax, commercial tax and excise duty
payments
Less: Estimated maturity/cancellation of BG’s during the period .
Requirements of BG’s
Recommended BG limit

Brief comments on requirements of above limits:


Annexure-III
Name of the Borrower:

Assessment of Term Loan:


1.Project Details
Rs.in lakhs.
Project cost Cost Margin (%) Margin amount Required
Bank Finance
Land &Buildings
Plant& Machinery
WC margin
Contingencies
Total project cost

Means of finance
Own funds
Borrowings from
friends and
relatives
Bank finance
others
Total means of Debt /Equity :
finance

3. Details of capital expenditure i.e land and factory building as well as machinery proposed to
purchase:

4. Remarks on cost of project & means of finance (in brief)

5. Term Loan Assessment: Rs.in lakhs


Years 1 2 3 4 5 6
(Act) (E) (E) (E) (E) (E)
Net Profit
Depreciation
Cash Accruals
Repayment obligations
(including Interest)
DSCR
Average DSCR

6. Project implementation schedule:

7. Comments on Commercial viability:


Annexure-III-A
(for SRTO’s)

Name of the Borrower:

Term Loan assessment for Transport Operators (SRTO)


Cost of Vehicle/s Rs.
Borrower’s Margin ( %) Rs.
Term loan recommended Rs.
Assessment:
Earnings
1 Total No. of Kilometers to be run per day (estimated)/ No.
of trips per day
2 Earnings per Km / earning per trip
3 No. of working days in a month
4 Total monthly earnings 1 x 2 x 3 …..A
Expenses
5 Cost of Fuel per litre
6 Quantity of fuel required per month
7 Cost of fuel per month
8 Monthly Wages / batta for driver / cleaner etc
9 Maintenance
10 Repair
11 Insurance (annual premium / 12)
12 MV Tax (annual tax /12)
13 Interest on borrowings
14 Sustenance
15 Other expenses
Total Monthly Expenses (5 to 15)….B
16 Monthly surplus …. A - B
17 Monthly TL repayment
18 DSCR 16/17

Brief details of above workings:


Annexure-IV
Name of the Borrower:

TERMS AND CONDITIONS


1. Facility
Limit
2. Security
Primary WC:
TL:
Collateral

Personal Guarantee
(Indicate Net worth of
Guarantors with date
of compilation of
opinion reports)
3. Interest CC(HYP):
(Linked to SBAR) TL:

4. Margin(%) Stocks: Term loan:


Receivables:
Cover Period:
BG/LC (cash Margins):
4. Repayment CC(HYP):- Repayable on demand.
TL:
5. Validity of Sanction, Sanction valid for two years. A review shall be made after 12
Review/Renewal months.
6. Inspection Quarterly
7. Stock Statement To be submitted monthly.
7. Insurance
8. Processing fee
9. EM Charges
10. Commitment Charges CC(HYP):-
Term Loan:-
11. Penal Interest
12. Documents As per SME Documentation
13. Other Stipulations, if
any.
FORMAT FOR ANNUAL REVIEW /RENEWAL OF LOANS
SANCTIONED UNDER SME SMART SCORE

PROPOSAL FOR REVIEW OF WC AND TERM LOAN SANCTIONED UNDER ‘SME SMART
SCORE' SCHEME.
1.Name of the unit
2 Constitution Proprietorship/Partnership/Private limited Company
3.Name of the
Proprietor/partners/
/directors
4. Business Address

Phone/Cell No.
5.Nature of activity
6. a).Date of Last
Sanction/review
b) Sanction is Valid up to
7. IRAC Position as on
8.Present Position of Facility Limit DP O/S Irregularity if
Accounts as on date any
(Rs. In lakhs) CC
TL
LC/BG
Comments on Conduct of above accounts:
9.Financial parameters
(Rs. In lakhs) Year Earlier Actual Estimated
Estimated achieved (Current
(previous (previous year)
year) year)
Net sales
PBT
Cash
Accrual
TNW
TOL/TNW
CR
Comments( to be commented on actuals for deviations
over estimates, if any)

9. Conduct of WC a/c Annual Turn over estimated Rs.


(Rs. In lakhs) Annual Credit Summations in the account Rs.

Value of the account: Rs.


(Interest/Exchange/commission Booked)
Cross selling Products Booked :
(Give the name of the products booked)
Retail Business Booked
Number of retail loans and amount booked for the
promoters/employees :

10. Whether earlier


sanction terms complied
with.
11. Whether irregularities
observed in I&A report
rectified.?
If not present status
12.Other Comments
( from Risk Angle)
(On associates, conduct
of accounts, Competition,
quality of products, CIBIL
report for individuals or
corporate as applicable
etc., and other relevant
risks. Bullet points only)
14. Recommendations
The Conduct of WC loan and Term loan has been reviewed and found satisfactory. The Credit
Score for renewal of limits is as per annexure –I, is satisfactory.

1.Recommended for continuation of Working Capital limit of Rs.

2. Recommended for release of additional working capital limit of Rs. as per the original sanction
on (give date) for the projected year-----

On the above terms and conditions as already set out in the original sanction dated—

Appraised by Approved by

Signature
Name
Designation
Date
Name of the Borrower:

Credit Scoring Model for Renewal proposals

Sr. Parameters Maximum Marks Criteria Mar


No. marks Scored ks
1 Actual sales/projected sales 10 90% & above 10
70% to < 90% 8
50% to < 70% 5
Below 50% 2
2 PBT/NS (%) 10 Increasing 10
Flat 5
Decreasing 1
3 Change in TOL/TNW during 5 Decreasing and
the year upto 3 5
Decreasing but
above 3 3
Increasing but
upto 3 3
Increasing but
above 3 0
4 Overall conduct of the 15 Excellent 15
account and working of the Good 10
unit OK 5
5 Credit summations in the 10 90% & above 10
account during the preceding 70 – 89% 7
12 months 50 – 69% 5
< 50%
(% of sales) NIL
MARKS SCORED 50

Minimum Marks should be 30/50

Veto Power if the account is unsatisfactorily conducted


i) cheques are frequently returned
ii) debit balance (outstanding) is over the drawing power for over 160 days in the year
iii) non-compliance of critical terms and conditions

(frequent devolvement of LCs and invocation of guarantees/non receipt of stock


statements etc. have not been mentioned as they would be reflected in ii)

Appraised by Approved by

Name
Date
SME CREDIT PLUS
Existing SSI borrowers with excellent track record and
1. Target Group :
have been standard assets for the past two consecutive
years and also new borrowers.

Units with CRA Rating of SB4 & above or the equivalent


2. Eligibility :
under the new CRA and / or standard assets for the past
two years
¾ For meeting bulk orders
3. Purpose :
¾ repairs to machinery
¾ Tax payments
¾ Any other contingency

4. Type of facilities : Clean Cash Credit

5. Quantum of Finance : 20% of aggregate working capital limit subject to a


maximum of Rs.25lacs

6. Margin : Not applicable

7. Rate of Interest : At the rates applicable for working capital limits

8. Security: :
Nil
- Primary
Existing collateral to be extended to cover this limit and
- Collateral additional collateral to be obtained only if considered
necessary by the sanctioning authority

9. Processing fees : As applicable to SSI units

Each amount of withdrawal should be repaid within 2


10. Repayment :
months.
There should be a gap of 15 days between the last date
of repayment of outstandings and the next withdrawal.

As applicable to clean cash credit.


11. Documentation :
¾ No cheque book to be issued
12. Special features :
Product Highlights:

SME Credit Plus is a product designed to meet sudden and unforeseen expenditure of SSI units
with excellent track record. Eligible units can be sanctioned an additional working capital limit of
upto 20% of the aggregate fund based working capital limit by way of clean cash credit.
Additionally, the product can be extended to new borrowers as a marketing tool to attract good
borrowal units of other banks to our books.

Marketing Tips:

• This product can be effectively used to attract borrowers of other banks with a good
track record and potential for growth to our books.
• Borrowers of other Banks, especially those whose genuine needs are not being
adequately met by their banks are the most likely target group for marketing of this
product.
• The local District Industries Centre, Industry associations, trade bodies are some of
the sources for providing information regarding "good units in the area".

Back to
Index
STANDBY LINE OF CREDIT
FOR WORKING CAPITAL REQUIREMENTS

1. Target Group : Existing SSI & C&I units and exporting units.

2 Eligibility : Rated SB3 or its equivalent under the new CRA and
above. Selectively for SB4 (or its equivalent under new
CRA)rated units
3 Purpose : To meet genuine contingency needs arising out of
bunching of orders, delay in shipment / realisation of
receivables, sudden increase in raw material costs, mis -
match in cash flows.

4 Type of facilities : Working capital limit by way of cash credit, EPC, bills
discounting, against stocks, receivables, etc., as
required.

5 Quantum of Finance : Fund based limits and Non-fund based limits


15% of working capital facilities subject to a maximum of
Rs.5 crs. The facility may be made available as fund
based and/or non fund based limits subject to the overall
exposure being within the SLC.(WC)
In the case of consortium advances, only our share in
the consortium should be reckoned for arriving at the
quantum.

6 Margin : As per the terms of the original limits

7 Rate of Interest : One per cent higher than that applicable to the Cash
Credit limit. Discretion to waive the additional cost rests
with the controller.

8 Security: :
- Primary Drawing power should be available to cover the
SLC(WC) limit

- Collateral Available collateral should be extended to cover SLC


limit also.

9
Processing fees NIL

10 Repayment Generally, within 2 months at any one instance and can


be availed any number of times in a calendar year.

11 Documentation : Documents should be obtained for the aggregate limits


including the SLC (WC)
In the case of consortium advances, the SLC(WC)
should be covered by a separate document and charge
registered with the ROC wherever applicable.
12 Special features : ¾ The SLC(WC) should not be used for special type of
facilities such as EPCG,DPG, etc..
¾ The sanction should be by the authority having
financial powers for sanction of the aggregate limits
including those under SLC(WC)
¾ SLC(WC) should be calculated separately for peak
and non peak limits
¾ SLC(WC) limits, being contingent in nature will be out
of the consortium arrangement
¾ Sanction for the SLC(WC) should be obtained at the
time of sanction of regular limits for all regular
borrowers and who are likely to avail this facility
during the year.
¾ SLC(WC) cannot be extended to units who have
utilized SME Credit Plus facility
¾ The release of the facility after due sanction should
be approved by the branch head on each occasion

Products Highlights:

This product has been introduced at the instance of RBI for enabling the exporters to avail
additional WC funds at short notice in times of urgent need. The maximum amount which can be
given is 15% of FB limits and NFB limits subject to a maximum of Rs.5crs While a similar product
namely, SME Credit plus is available for a contingent limit of Rs.25lacs only, this Stand by Line of
Credit can be given upto Rs.5crores.

Marketing tips:

Ä This product can be shown as an additional feature while marketing for SSI / C&I /
export business.
Ä Our existing units can be given this facility at the time of renewal itself, so that at the time
of need the unit can avail without loss of time.

Back to
Index
GENERAL PURPOSE TERM LOAN FOR SSI SECTOR

1. Target Group : Existing SSI borrowers with CRA rating of SB3 and
above
2 Eligibility : Ä Should have earned profits in each of the
preceding 3 years
Ä The unit should not have a history of default
Ä The unit should be CRA rated unit with a minimum
limit of Rs.25 lacs (as far as possible).
Ä
3 Purpose : Any general commercial purpose such as shoring up
NWC, substitution of high cost debt, R&D, quality
upgradation for ISO certification, etc.

4 Type of facilities : Term Loan

5 Quantum of Finance : Maximum of Rs.50lacs

6 Margin : Minimum of 25% for acquisition of assets, i.e., quantum


of loan should be restricted to 75% of project cost.

7 Rate of Interest : As per CRA rating

8 Security: :
- Primary Extension of Hypothecation charge over current and
fixed assets
- Collateral
Ä Extension of charge over existing collateral
Ä Obtention of additional collateral by way of
tangible security to be explored
Ä Personal guarantees of proprietor/ partners /
promoters to be invariably obtained

9 Processing fees As applicable to SSI units

10 Repayment In monthly /quarterly instalments normally in 3 years,


extendable upto 5 years in deserving cases.

11 Documentation : Specially designed document on the lines of the


Composite Loan Agreement

12 Special features : Ä Term Loan to be disbursed in line with the


approved purpose
Loans , deposits, from friends and relatives can be
treated as quasi-equity to arrive at TNW subject to
undertaking from them that the amounts will not be
withdrawn during the currency of the loan.
Product Highlights:

This product is similar to the Corporate Loan which has recently been extended for non- corporate
borrowers. Our existing SB3 rated units which require funds for any purpose connected with the
running of the unit can be offered this product provided the unit has been making profits for the last
3 years and is brought under CRA rating exercise. The maximum amount of loan which can be
sanctioned is Rs.50lacs.repayable in 3 to 5 years.

Marketing Tips:

The existing SB3 rated SSI customers are the target group. Generally, the SSI units tend to borrow
from private financiers to tide over their immediate liquidity problems as availing this amount from
the Bank ,even if eligible, would be time consuming. Hence, it would be in the interest of the Bank
to advise such borrowers to replace their high cost debt from other sources with this loan at
considerably lower cost to ensure continued profits for the unit

FAQs
Ä Can both Corporate Loan and this loan be given to the same unit?

No. Depending on which product is more suitable, any one of these loans can
be given.

Back to
Index
OPEN TERM LOAN
Manufacturing Sector
1. Target Group : SMEs in Manufacturing sector

2. Eligibility : Existing or new corporate or non – corporate customers


in SME – manufacturing sector with credit ratings of
SB3/SBTL3 and above.
Units with SB4/SBTL4 can be considered selectively with
administrative approval of CGM( Circle)
Non customers also can be considered subject o
fulfillment of take – over norms and after due obtention of
opinion reports from their existing bankers.
Current Ratio and TOL /TNW should at acceptable levels
DSCR should be at least 1.75
3. Purpose : Any genuine commercial purpose such as
¾ expansion / modernisation
¾ substitution of high cost debt of other banks / FIs
¾ Upgradation of technology
¾ Energy conservation systems
¾ Acquisition of software, hardware, consumables,
tools, jigs, fixtures, etc.
¾ ISO and other such certifications
¾ Visits abroad for acquiring technology, finalizing
deals, participation in fairs, market promotion, etc.
4. Type of facilities :
Term Loans
5. :
Quantum of Finance Maximum Rs.250lacs
For amounts more than this, prior administrative
approval from the CGM(Circle) is to be obtained and the
sanction would have to be accorded by CCC – 1
6. :
Margin 10% uniformly
7. :
Rate of Interest As per the credit rating of the borrower linked to SBAR
on floating rate basis
8. Security: : ¾ Hypothecation of the machinery proposed to be
- Primary purchased out of the Term loan
- Collateral
¾ Extension of charge over current assets, fixed
Assets and other existing collateral
¾ Obtention of additional collateral should be explored
¾ In all cases, personal guarantees of the promoters of
the unit have to be invariably obtained.
In case of corporate borrowers, pledge of
promoters equity should be explored
9. Processing fees As applicable to the unit for term loans
10. Repayment : Generally not to exceed 3 years. May be extended upto
5 years selectively if considered necessary.

11. Documentation : Usual Term Loan Agreement for the TL limit to be


obtained upfront and supported by exchange of suitable
letters at the time of each disbursement
12.
Special features ¾ This is a unique facility of a pre-sanctioned term loan
limit with the option of multiple disbursements for
multiple purposes to be sanctioned along with the
working capital limits.
¾ This facility is to be made available at our erstwhile
commercial network branches, industrial estate
branches, SSI branches, which are headed by CMs
and such other branches identified for the purpose by
the CGM(Circle)/GM(Network)
¾ Other branches may get such loans processed and
sanctioned by SECC/CPCs irrespective of the
amount.
¾ Borrowers can utilize the facility on multiple
occasions as per their needs.
¾ Each disbursal can be made by the branch manger
without reference to the sanctioning authority
¾ The repayment for each term loan is to be calculated
by reference to the date of the first drawdown
¾ Each disbursal should be supported by an exchange
of letters between the borrower and the Bank.
¾ The sanction is valid for 12 months only from the date
of sanction and any unutilized portion will lapse after
12 months.
¾ Each term loan has to be treated as an individual TL
for accounting purposes.
¾ The discretionary powers are as applicable to term
loans.
¾ There is no need to refer these proposals to the
Consultancy cells for techno-economic viability study.
Product Highlights:

This is a unique facility, the first of its kind aimed at our existing units, both our customers,
especially those who are rated high as well as those banking elsewhere to facilitate them to
negotiate for acquisition of assets, etc. with the comfort of a pre-sanctioned term loan limit.
There is no need for routine references to the Consultancy cells for TEV study for this
product.
Back to
Index
OPEN TERM LOAN
For Services Sector

13. Target Group : Hotels, Hospitals, Educational Institutions & Fleet


Operators
14. Eligibility : Existing or new corporate or non – corporate customers
in SME – manufacturing sector with credit ratings of
SB3/SBTL3 AND ABOVE.
Units with SB4/SBTL4 can be considered selectively with
administrative approval of CGM( Circle)
Non customers also can be considered subject o
fulfillment of take – over norms and after due obtention of
opinion reports from their existing bankers.
Current Ratio and TOL /TNW should at acceptable levels
DSCR should be at least 1.75
15. Purpose : Any genuine commercial purpose such as
¾ expansion / modernisation
¾ substitution of high cost debt of other banks / FIs
¾ Upgradation of technology
¾ Energy conservation systems
¾ Acquisition of software, hardware, consumables,
tools, jigs, fixtures, etc.
¾ ISO and other such certifications
¾ Visits abroad for acquiring technology, finalizing
deals, participation in fairs, market promotion, etc.
16. Type of facilities :
Term Loans
17. :
Quantum of Finance Maximum Rs.100lacs
For amounts more than this, prior administrative
approval fro the CGM(Circle) is to be obtained and the
sanction would have to be accorded by CCC – 1
18. :
Margin 10% uniformly
19. :
Rate of Interest As per the credit rating of the borrower linked to SBAR
on floating rate basis
20. Security: : ¾ Hypothecation of the machinery proposed to be
- Primary purchased out of the Term loan
- Collateral
¾ Extension of charge over current assets, fixed
Assets and other existing collateral
¾ Obtention of additional collateral should be explored
¾ In all cases, personal guarantees of the promoters of
the unit have to be invariably obtained.
In case of corporate borrowers, pledge of
promoters equity should be explored
21. Processing fees As applicable to the unit for term loans

22. Repayment : Generally not to exceed 3 years. May be extended upto


5 years selectively if considered necessary.

23. Documentation : Usual Term Loan Agreement for the TL limit to be


obtained upfront and supported by exchange of suitable
letters at the time of each disbursement
24.
Special features ¾ This is a unique facility of a pre-sanctioned term loan
limit with the option of multiple disbursements for
multiple purposes to be sanctioned along with the
working capital limits.
¾ This facility is to be made available at our erstwhile
commercial network branches, industrial estate
branches, SSI branches, which are headed by CMs
and such other branches identified for the purpose by
the CGM(Circle)/GM(Network)
¾ Other branches may get such loans processed and
sanctioned by SECC/CPCs irrespective of the
amount.
¾ Borrowers can utilize the facility on multiple
occasions as per their needs.
¾ Each disbursal can be made by the branch manger
without reference to the sanctioning authority
¾ The repayment for each term loan is to be calculated
by reference to the date of the first drawdown
¾ Each disbursal should be supported by an exchange
of letters between the borrower and the Bank.
¾ The sanction is valid for 12 months only from the date
of sanction and any unutilized portion will lapse after
12 months.
¾ Each term loan has to be treated as an individual TL
for accounting purposes.
¾ The discretionary powers are as applicable to term
loans as usual.
¾ There is no need to refer these proposals to the
Consultancy cells for techno-economic viability study.
Product Highlights:

This is a unique facility, the first of its kind aimed at our existing units, both our customers,
especially those who are rated high as well as those banking elsewhere to facilitate them to
negotiate for acquisition of assets, etc. with the comfort of a pre-sanctioned term loan limit.
There is no need for routine references to the Consultancy cells for TEV study for this
product.
Back to
Index
RICE MILLS PLUS

25. Target Group : Rice Mills with proven track record as well as new units
set up by our existing borrowers
26. Eligibility : a) Profit making existing units with CRA rating of
SB4 and above as per the simplified CRA system
for Rice Mills
b) Take-over of units conforming to takeover norms
is also permitted
c) In the case of new units set up by our existing
borrowers, the regular CRA model for SSI / C&I
units has to used and should be at least SB3
rated to be eligible for finance under Rice Mills
Plus. Also, 50% of the partners should be our
existing borrowers and management control
should vest with them.

27. Purpose : a) Acquisition of machinery/factory building for


modernisation
b) Working capital needs

28. Type of facilities : Term Loan, Cash Credit, outward bill limit, LCs , BGs,
SME Credit Plus

29. Quantum of Finance : No upper Ceiling. Nayak Committee norms are


applicable: minimum of 20% of projected annual
turnover. A higher limit can be considered selectively on
projected balance sheet method. Peak and non peak
limits can be fixed depending on actual need.
Separate limits for other activities:-
Wherever the borrowers are engaged in other activities,
separate limits may be considered based on viability and
other aspects of assessment and appraisal.

30. Margin :
Term Loan – 15-25%

Working Capital –

Stocks :-
Paddy &Rice - 15%-20%
Brokens - 20%
Bran - 30%
Gunny bags - 40%
Book debts-
40%(cover period – max. 60 days)
Margin for book debts can be lowered upto 25% where
adequate collateral is available.
31. Rate of Interest : CRA Rating ( NEW) Interest rates

SB1& 2 0.25% below SBAR

0.50% above SBAR


SB 3,4 & 5
1.00% above SBAR
SB 6 &7
1.50% above SBAR
SB 8 & 9 .

For Term Loans

SBTL 1&2 0.25% above SBAR

SBTL 3,4 & 5 1.00% above SBAR

1.50% above SBAR


SBTL 6& 7
2.00% above SBAR
SBTL 8 &9
32. Security: : Hypothecation/pledge of assets created out of Bank
- Primary finance
- Collateral
For loans upto Rs.5lacs-NIL. Others-Tangible security of
borrower or guarantor valued at not less than 75% of
loan amount. For SB1, SB2 rated units the value of
collateral should be not less than 50% of the loan
amount.(Lr.No. SME/AB/ 490 dt. 25.09.2007)
33. Processing fees Rs.115/- per 1 lac
Upfront fee for term loans 0.60% of the loan amount
Issuance of drafts/ BCs/ cheque collection – 50% of
applicable charges.
34. Repayment : TL – 5 to 7 years excluding the gestation period of
maximum 12 months

35. Documentation : As applicable to SME units


Product Highlights:

So far, Rice Mills have been extended credit only on very stringent terms and even SB1 &
SB2 rated companies could not be financed adequately due to the stiff terms of
assessment. Keeping this constraint in view, this product has been introduced in the SSI
segment with a simplified credit rating model which includes weightage for achievement for
projected sales and loyalty to the Bank factor. A specially designed appraisal format has
been designed for the product. This product can be extended at all branches handling
CAAs and also those identified for the purpose by the Circle Management Committee. As
regards assessment, for limits upto Rs.5 crores, Nayak Committee norms for working
capital have to be adopted.
New units can also be financed and the regular CRA model applicable to SSI/C&I units has
to used for arriving at the CRA rating.

Marketing Tips:
• Simplified assessment method for arriving at WC & TL components.
• SME Credit Plus can be granted which is repayable in 6 months.
• Non fund based facilities can be extended especially for exporters.
• Outward Bill limit upto 60 days cover can be considered in specific cases.
• A traditional banking product with a new look and very attractive terms of finance.
FAQS
Ä Can the loans under this scheme be handled at rural branches?
Yes, provided the Circle Management Committee authorizes
the branch for handling this business.
Ä What is the rating pattern under the simplified model designed for this product?
The rating model for this product is as under:-

Credit rating score Rating Back to


Index
Over 90% SB1
Between 75 to 90 % SB2
Between 60 to 75 % SB3
Between 50 to 60 % SB4
RICE MILLS PLUS - CREDIT RATING SYSTEM
S.No. Parameters Score
1. Current Ratio >=1.15 15
>=1.13 <1.15 12
>=1.10 <1.13 8
>=1.05 <1.10 5
<1.05 0
2. TOL/TNW Ratio <=2.50 10
>=2.50 <3.50 8
>=3.50 <5.00 6
>=5.00 <6.00 4
>6.01 2
3. Gross average DSCR for all loans inclusive >=2 10
of the proposed term loan <2.00 >=1.75 7
<1.75 >=1.50 5
<1.50 2
4. Interest and instalment obligation of cash 9 Timely repayment on due date 10
credit and term loan(s) 9 Delayed payment upto 30 days 5
9 Over 30 days 0
5. Total sales : Inventory + sundry debtors >= 4 times 10
>=3times <4 times 8
>=2 times <3 times 4
<2 times 2
6. Submission of stock statements, balance 9 Timely submission 5
sheets, renewal data 9 One month delay 3
9 Irregular in submission 1
7. Achievement of projected sales >=85% 5
< 85% >=50% 4
<50% >=25% 3
<25% 0
8. Supported by tangible collateral security Security coverage to total loan
including 2nd charge on fixed assets >=100% 10
>=50% <100% 8
>=25% <50% 4
2
<=25%
9. Operational experience in cash credit 9 Liability not exceeding DP / Limit 10
9 Liability exceeded limit Occasionally.
Excess drawal adjusted in time. 5
9 Liability exceeded frequently and
adjusted with some delay. 3
10. Compliance with terms and conditions of 9 Complied with promptly 5
sanction 9 Complied with delay 3
9 Not complied with 0
11. Age of relationship with the Bank (Banking Above 5 years 5
with us since….) >3 years <5 years 4
> 1year <3 years 2
12. Age of the firm / Company# Above 5 years 5
>3 years <5 years 4
>1 year <3 years 2
Remarks a) Gross average DSCR for all loans (Sr. No. 3) will not be applicable in case the unit is not
seeking term assistance. In such cases, the total score need to be normalized to 100.
b) The higher age of the firm / company will reduce the chances of default.
Consistence downfall in performance inclusive of profitability parameters should fetch a firm
/ company a score of 2 irrespective of the age of the firm/company.

Annexure-II
Commercial Advances IRAC
SSI Segment : Rice Mills Credit Rating
Unit : Date of last renewal

1. Proposal for :
(Please tick)
Renewal of working capital limits at the existing level
Renewal of working capital limits with enhancement
Sanction of working Capital limits – New
Sanctioning Authority (CCC-I / CCC-II MECC / SECC / DGM / AGM / CM / BM)

2. Total indebtedness :
(Rs. Lakhs)
Proposed
Nature of Facility Existing

Fund Based
Cash Credit (MT)
Cash Credit (Hypothecation)
Cash Credit (Outward Bills – Clean)
Medium Term Loan
Total (A)

Non Fund Based


Letters of credit
Bank Guarantees
Total (B)
Grand Total (A+B)

3. Borrower
a) Name :
b) Factory at :
c) Constitution : Partnership
d) Date of Partnership deed :
e) Name & Worth of Partners :

S.No. Name Worth in Rs. Lakhs


1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

f) Products manufactured / processed :


g) Date of commencement of :
Commercial production
h) Dealing with SBI since :
i) Whether the firm has power to borrow : Yes / No.
j) Names of authorized signatories

(If applicant is other than a partnership, please alter the columns suitably)

4. Brief History :
5. Production facilities : As per Annexure – I

6. Key Financial Indicators :

Actuals Estimates Projections


31.3. 31.3 31.3. 31.3
Sales
Rice - levy (FCI)
Quantity (Quintals)
Value
Rice - levy (APSCSC)
Quantity (Quintals)
Value
Rice - Non Levy
Quantity (Quintals)
Value
Brokens
Quantity (Quintals)
Value
Bran
Quantity (Quintals)
Value
Husk
PURCHASES – Quality – wise
Quantity (Quintals)
Value
Gross Profit
Net Profit
Tangible Net Worth
Current Assets
Current Liabilities
Net Working Capital
Current Ratio
TOL / TNW
Current Year Sales from 1st April to 30th
September

7. Comments on the financial position / indicators :

Sales

Net Profit
Annex - I
Production facilities :

Owned Leased

Capacity of Rice Mills (Tons per hours)


Number of shifts per day
Total No. of working days
Total Annual Capacity

For the Leased Capacities :

Name of the Owner :


Date of Lease deed :
Valid up to :
Whether the lease rights are : Yes / No.
Assignable
Clauses detrimental to the :
Bank’s Interest if any

II. Storage Capacity :

Milling Hall :
Open Yard :
Godown :
Owned :
Rented :
Total Storage capacity :

For Rented Godowns


Whether rent letter obtained : Yes / No.

Assessed Quantity of

III. Production (Projected for the current year)

Levy Non Levy Total

Paddy proposed to be milled (Quintals)


Production (in Quintals)
Rice
Brokens
Bran
Husk
Total

IV. Sales (Projected for the Current Year)

Levy Non Levy Total

Rice
Brokens
Bran
Husk
Total

Monthly Turnover (in Rs. Lacs) for the last twelve monthas)

1 2 3 4 5 6 7 8 9 10 11 12
Month
Turnover

V. Utilities :

Required Available

Power
Transco
Generator
Water
Labour

VI. Licenses / Statutory Dues / Litigation

SSI Registration Number


Position regarding Statutory dues Assessed upto Assessed Value
Income Tax
Sales Tax
Any Pending suits against the unit by the Yes / No.
Government Departments / Corporations
If “Yes”, furnish the particulars on a separate sheet)
Whether all the required licenses are obtained Yes / No.
and kept on Record
If “Yes”, furnish the particulars on a separate sheet)
Associate I II III
Concerns if any
and the position of Unit’s Name
accounts
Date of Sanction
Limit (Rs. Lakhs)
D.P. (Rs. Lakhs)
O.S. (Rs. Lakhs)
IRAC Status
VII. Commercial Data

Before Last Year Last Year Current Year (Proj.)

Levy Quota allotted* (Quintals)


Levy sales (Quintals)
Levy Sales (Value)
Non-Levy sales (including brokens, bran
and husk etc.) value
Maximum Drawings at any one time
Interest Income*
Other Income

* Expected, If order is not yet received


(Enclose copy of the present order issue by the competent authority. If the present one is not yet received, enclose
previous year’s order)

Overall Risk Level : Score out of 100

Credit Rating Awarded :

Asst. / Deputy Manager (Appraisor) Branch / Chief Manager (Assessor)


DAL MILLS PLUS

1. Target Group : Dal mills

2. Eligibility : ¾ Profit making existing units with CRA rating of SB4


and above
¾
3. Purpose : ¾ Acquisition of machinery / factory buildingfor
modernization
¾ Working Capital needs
¾
4. Type of facilities : Term Loan / Cash Credit / LCs / BGs / SME Credit Plus

5. Quantum of Finance : TL – no upper ceiling , CC – As per Nayak Committee


norms for limit upto Rs.5crores

6. Margin : Cash credit – 25%


7. Rate of Interest :
Finer rates of interest are being offered for Dal Mills Plus
as per circulars issued from time to time
8. Security: :
- Primary - Hypothecation of assets created out of Bank’s finance
- Upto Rs.5 lacs – NIL

- Collateral - Above Rs.5lacs – EM of property / tangible


security for not less than 75% of the loan
amount

9.
Processing fees As per SSI norms

10. :
Repayment TL to be repaid in 5 to 7 years excluding a maximum
moratorium period of 12 months

11. Documentation : As applicable to SSI units

12. Special features :


¾ A simplified CRA rating system has been designed
to suit the special characteristics of Dal Mills
¾ Loan has to be sanctioned to deserving units within
15 days of receipt of completed applications
¾ A special appraisal form has been designed to
assess the credit needs of Dal mills
Product Highlights:

This is a product to help in proper assessment of the credit needs of the Dal mills which although
a traditional activity has assumed a more complex format in view of the liberalization of import and
modernization of the processing of various kinds of pulses. The simplified CRA model will help in
taking into account the market practices and is customer friendly which will help in not only
retaining our existing customers and meeting their credit and other banking needs more
comprehensively but also in attracting new connections to our books subject to fulfillment of take
over norms.
Marketing Tips:

¾ Contact local Dal Mill Owners Association to obtain a list of all dal mills in the area
¾ Arrange a meeting of all dal mill owners to explain this exclusive product designed for them by
the Bank.

FAQs
¾ Can combined dal and flour mills be financed under this product?

Yes provided the books are maintained to reflect the dals and the flour items
Separately
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DAL MILLS PLUS - CREDIT RATING SYSTEM


S.No. Parameters Score
1. Current Ratio >=1.15 15
>=1.13 <1.15 12
>=1.10 <1.13 8
>=1.05 <1.10 5
<1.05 0
2. TOL/TNW Ratio <=2.50 10
>=2.50 <3.50 8
>=3.50 <5.00 6
>=5.00 <6.00 4
>6.01 2
3. Gross average DSCR for all loans inclusive >=2 10
of the proposed term loan <2.00 >=1.75 7
<1.75 >=1.50 5
<1.50 2
4. Interest and instalment obligation of cash 9 Timely repayment on due date 10
credit and term loan(s) 9 Delayed payment upto 30 days 5
9 Over 30 days 0
5. Total sales : Inventory + sundry debtors >= 4 times 10
>=3times <4 times 8
>=2 times <3 times 4
2
>2 times
6. Submission of stock statements, balance 9 Timely submission 5
sheets, renewal data 9 One month delay 3
9 Irregular in submission 1
7. Achievement of projected sales >=85% 5
< 75% >=50% 4
<50% >=25% 3
<25% 0
8. Supported by tangible collateral security Security coverage to total loan
including 2nd change on fixed assets >=100% 10
>=50% <100% 8
>=25% <50% 4
2
<=25%
9. Operational experience in cash credit 9 Liability not exceeding DP / Limit 10
9 Liability exceeded limit Occasionally.
Excess drawal adjusted in time. 5
9 Liability exceeded frequently and
adjusted with some delay. 3
10. Compliance with terms and conditions of 9 Complied with promptly 5
sanction 9 Complied with delay 3
9 Not complied with 0
11. Age of relationship with the Bank (Banking Above 5 years 5
with us since….) >3 years <5 years 4
> 1year <3 years 2
12. Age of the firm / Company# Above 5 years 5
>3 years <5 years 4
>1 year <3 years 2
#Remarks a )Gross average DSCR for all loans (Sr. No. 3) will not be applicable in case the unit is not
seeking term assistance. In such cases, the total score need to be normalized to 100.
b) The higher age of the firm / company will reduce the chances of default. Consistent
downfall in performance inclusive of profitability parameters should fetch a firm / company
a score of 2 irrespective of the age of the firm/company.

Commercial Advances IRAC


SSI Segment : Rice Mills Credit Rating
Unit : Date of last renewal

1. Proposal for :
(Please tick)
Renewal of working capital limits at the existing level
Renewal of working capital limits with enhancement
Sanction of working Capital limits – New
Sanctioning Authority (CCC-I / CCC-II MECC / SECC / DGM / AGM / CM / BM)

2. Total indebtedness :

(Rs. Lakhs)
Proposed
Nature of Facility Existing

Fund Based
Cash Credit (MT)
Cash Credit (Hypothecation)
Cash Credit (Outward Bills – Clean)
Medium Term Loan
Total (A)

Non Fund Based


Letters of credit
Bank Guarantees
Total (B)
Grand Total (A+B)

3. Borrower

a) Name :
b) Factory at :
c) Constitution : Partnership
d) Date of Partnership deed :
e) Name & Worth of Partners :

S.No. Name Worth in Rs. Lakhs


1.
2.
3.
4.
5.
6.
7.
8.
9.
10.

f) Products manufactured / processed :


g) Date of commencement of :
Commercial production
h) Dealing with SBI since :
i) Whether the firm has power to borrow : Yes / No.
j) Names of authorized signatories

(If applicant is other than a partnership, please alter the columns suitably)

4. Brief History :
5. Production facilities : As per Annexure – I

6. Key Financial Indicators :

Actuals Estimates Projections


31.3. 31.3 31.3. 31.3
Sales
Rice - levy (FCI)
Quantity (Quintals)
Value
Rice - levy (APSCSC)
Quantity (Quintals)
Value
Rice - Non Levy
Quantity (Quintals)
Value
Brokens
Quantity (Quintals)
Value
Bran
Quantity (Quintals)
Value
Husk
PURCHASES – Quality – wise
Quantity (Quantals)
Value
Gross Profit
Net Profit
Tangible Net Worth
Current Assets
Current Liabilities
Net Working Capital
Current Ratio
TOL / TNW
Current Year Sales from 1st April to 30th
September

7. Comments on the financial position / indicators :

Sales

Net Profit
Annex - I
Production facilities :

Owned Leased

Capacity of Rice Mills (Tons per hours)


Number of shifts per day
Total No. of working days
Total Annual Capacity

For the Leased Capacities :

Name of the Owner :


Date of Lease deed :
Valid up to :
Whether the lease rights : Yes / No.
Assignable

Clauses detrimental to the :


Bank’s Interest if any

II. Storage Capacity :

Milling Hall :
Open Yard :
Godown :
Owned :
Rented :
Total Storage capacity :

For Rented Godowns


Whether rent letter obtained : Yes / No.

Assessed Quantity of

III. Production (Projected for the current year)

Levy Non Levy Total

Paddy proposed to be milled (Quintals)


Production (in Quintals)
Rice
Brokens
Bran
Husk
Total

IV. Sales (Projected for the Current Year)

Levy Non Levy Total

Rice
Brokens
Bran
Husk
Total

Monthly Turnover (in Rs. Lacs) for the last twelve monthas)

1 2 3 4 5 6 7 8 9 10 11 12
Month
Turnover

V. Utilities :

Required Available

Power
Transco
Generator
Water
Labour

VI. Licenses / Statutory Dues / Litigation

SSI Registration Number


Position regarding Statutory dues Assessed upto Assessed Value
Income Tax
Sales Tax
Any Pending suits against the unit by the Yes / No.
Government Departments / Corporations
If “Yes”, furnish the particulars on a separate sheet)
Whether all the required licenses are obtained Yes / No.
and kept on Record
If “Yes”, furnish the particulars on a separate sheet)
Associate I II III
Concerns if any
and the position of Unit’s Name
accounts
Date of Sanction
Limit (Rs. Lakhs)
D.P. (Rs. Lakhs)
O.S. (Rs. Lakhs)
IRAC Status

VII. Commercial Data

Before Last Year Last Year Current Year (Proj.)

Levy Quota allotted* (Quintals)


Levy sales (Quintals)
Levy Sales (Value)
Non-Levy sales (including brokens, bran
and husk etc.) value
Maximum Drawings at any one time
Interest Income*
Other Income

* Expected, If order is not yet received


(Enclose copy of the present order issue by the competent authority. If the present one is not yet received, enclose
previous year’s order)

Overall Risk Level : Score out of 100

Credit Rating Awarded :

Asst. / Deputy Manager (Appraiser) Branch / Chief Manager (Assessor)


ARTHIAS PLUS
1. Target Group : Commission agents (Arthias) of agricultural produce who
are registered with the Market Committee and possess a
license issued by the District Food and Supplies
Department to sell the produce of the farmers.
2 Eligibility : Ä Commission agents enjoying good reputation and
who have been in this business for at least the
past 3 years and holding a valid license to carry
on his activity.
Ä Commission agents having receivables from
farmers only.
3 Purpose : To finance commission agents against receivables from
farmers.

4 Type of facilities : Cash Credit ( Hypothecation of book debts not more than
6 months old)

5 Quantum of Finance : Maximum Rs.25lacs

6 Margin : 40%

7 Rate of Interest : AGL/SBF Segment


0.5% below SBAR for limits below Rs.2lacs
At SBAR for limits of Rs 2lacs and upto Rs.10lacs

Under C&I segment (Above Rs.10lacs & upto Rs.25lacs)


1.10% to 2.50% above SBAR based on CRA Rating
8 Security: :
- Primary Hypothecation of receivables and movable assets if any
EM of non-agricultural property, either residential or
- Collateral
commercial belonging to the borrower or guarantor for
1.5 times the loan amount.
9 Processing fees As applicable to the segment

10 Repayment To be liquidated within 6 months and to be renewed


annually

11 Documentation : As per simplified SME documentation

12 Special features : Ä A statement of eligible receivables should be


obtained from the borrower and verified with
books of account or audited financial statements.
Ä At the end of every cropping and marketing
season, the borrower should liquidate the
outstandings fully
Ä The limit should thereafter be subject to review/
renewal as per trade advance norms.
Product Highlights:

Commission agents have established themselves as a strong link between the farmers and the
markets for their produce. These commission agents provide finance for the farmers for their
cultivation needs and act as agents to sell their crop at harvest time. They charge commission of 1
to 2% which is recovered from the buyer of the produce. These agents are registered with market
committees. The records of produce brought by the farmer and auctioned in the market yard are
maintained by the marketing board. Our product "Arthias Plus" provides finance to these
commission agents otherwise known as "arthias" against their receivables of not more than 6
months old, from farmers only. The credit is extended by way of cash credit (hypothecation of book
debts and assets) upto a maximum amount of Rs.25 lacs.
This is to be treated as indirect finance to agriculture.

Marketing Tips:

• The marketing committees will be able to provide details of registered "arthias"


(commission agents) who should be contacted personally to sell this product.
This is a valuable tool to increase bank credit to rural areas and will greatly assist in
marketing of agricultural produce.

FAQs

Ä Can unregistered Arthias be financed?

No. Only those commission agents who are registered with the market committees are
eligible for finance under this scheme.

Ä What about those States where this system of registration is not in vogue?

In such cases, this scheme is not applicable. Instead, any other scheme such
as advance against mortgage of immovable property can be considered on
merits.
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WORKING CAPITAL FINANCE TO T&S SECTOR

1. Target Group : .Retail and wholesale traders in agricultural and


industrial commodities, Dealers in consumer durables,
consumer goods, vehicles, showrooms, etc.

2 Eligibility : Units in C&I segment established with profits at least in


the preceding 3 years with CRA rating of SB4 and above

3 Purpose : Working capital requirements

4 Type of facilities : Cash credit limit with a sub-limit for LCs if required

5 Quantum of Finance : 15% of projected annual turnover which should not be


more than 25 % of the turnover in the previous year
subject to a maximum of Rs.5 crores.

6 Margin : 25%

7 Rate of Interest : As per credit rating. A concession of 0.50% may be


offered for units with at least 75% collateral coverage

8 Security: :
- Primary Hypothecation of stocks and receivables
- Collateral
Collateral security of at least 50% is to be prescribed out
of which at least 33% of the limit should be by way of
mortgage of immovable property. The stipulation
regarding immovable property can be reduced to 25% in
exceptional cases with the administrative approval of
CCC-II.

9 Processing fees As applicable to C&I units

10 Repayment On demand

11 Documentation : As per simplified SME documentation

12 Special features : In case the proposal does not fit into the turnover based
model of credit assessment, the traditional method of
projected balance sheet method may be adopted.
Product highlights:

As a measure to improve credit flow to the Trade & Services sector, a financial model based on the
annual turnover rather than on inventory build up has been designed . As per this model , a credit
limit equal to 15 % of the projected annual turnover can be fixed subject to the projection being not
more than 25% increase in the actual turnover of the immediately preceding year. A margin of 25
% has to be maintained and the drawing power has to be regulated based on the stock
statements.

Marketing tips:

Ä Traders, both wholesale and retail, are the target group.


Ä The rates of interest charged by the Bank are much lower than the rates at which most
of the traders avail finance from the private financiers or from the suppliers.
Ä The collateral to be taken is only 33% if the applicant is an established profit making
enterprise with CRA rating of SB4.
Ä Interest concessions can be offered if the collateral offered is more than 75% of the loan
amount.

FAQs

Ä Can the borrower be granted higher limits than what is arrived at under the Turnover
method?
Ä Yes. In such cases the assessment has to be made under the Projected Balance Sheet
method.

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FLEXI LOAN FOR TRADE AND SERVICES

1. Target Group : 1. Wholesale and retail traders in agricultural or


industrial commodities
2. Distributors and stockists of industrial products ,
consumer durables, consumables , etc.
3. Export / import intermediaries
4. Tourism related facilities-Hotels/resorts/travel
agents, etc.
5. Large transport operators of passenger
buses/fleet owners
6. Construction, transport & supply contractors,
Hospitals, nursing homes, clinical labs, etc.,
2 Eligibility : Borrowers with CRA rating of SB4 or SBTL4 and above
only are eligible and should have earned cash profits in
each of the preceding 3 years and net profit in the last
year. Only established traders with proven record of
profitability are eligible.
3 Purpose : The loan can be considered for any general purpose
such as
¾ Holding of stocks/book-debts
¾ Acquisition of land and building
¾ Construction/renovation of office/showroom
¾ Purchase of vehicles, equipment, machinery
¾ Shoring up of net working capital
4 Type of facilities : Term loan

5 Quantum of Finance : Rs.5 lacs to Rs.100 lacs. In the case of extending this
term loan for working capital purposes, a limit of upto
15% of the assessed WC limits can be considered for
meeting contingencies , subject to availability of drawing
power. Minimum DSCR to be 1.50.CRA –Trade model to
be used for limits above Rs.25 lacs.
6 Margin : Minimum 25% of the expenditure

Rate of Interest : Linked to CRA rating for limits above Rs. 25 lacs. For
others, SBF rates are applicable.

8 Security: : Hypothecation of current assets and EM of land and


- Primary building if acquired from Bank finance
1. Tangible security by way of immovable property,
- Collateral
TDRs, NSCs, etc for a minimum of 35% of the loan
for those with a satisfactory track record of 3 years.
For others, minimum collateral should be 50% .
2. Personal guarantees of promoters/partners/
proprietor
9. Processing fees As applicable to C&I units
10 Repayment In 3 to 5 years This can be extended upto 8 years in
deserving cases.
11 Documentation : As per simplified SME documentation

12 Special features : ¾ RBI guidelines on selective credit control will


apply
¾ Audited Balance Sheet to be obtained as per
extant instructions
¾ Exposures under Multiple Banking Arrangement
may be explored selectively to facilitate take-over
of quality assets.

Product Highlights:

This is a term loan facility repayable in 3 to 5 years extendable upto 8 years, designed
taking into account the special requirements of the trade and services sector. The eligible
activities for this product are:
1) Wholesale and retail traders & distributors of agricultural & industrial
commodities
2) Departmental stores and supermarkets
3) Export/ import intermediaries
4) Large transport operators of passenger buses and goods.
5) Construction, transport, supply, public utility / maintenance contractors
6) Tourism related facilities – Hotel / travel agencies
7) Hospitals, nursing homes, clinical labs etc.
Borrowers with CRA rating of SB4 or SBTL4 under CRA-Trade model are eligible for this
product. Gross DSCR should be minimum 1.50 and TOL/TNW not beyond 4and total long
terms liabilities to equity should not be more than 2:1 and current ratio should be at least 1.
The maximum amount of TL which can be granted under this scheme is Rs.100 lacs.

Marketing Tips:

¾ Almost anyone involved in trade or service can be offered this facility which can
be used for any general purpose connected with their line of activity.
¾ All small and medium sizes enterprise in the area of operation can be
targeted for this product.

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SBI SHOPPE
1. Target Group : Present and prospective owners of shops/ offices/ show-
rooms/ training centres/ service centres/ garages/ offices
for Chartered Accountants / Consultants

2. Eligibility : Individuals /firms / partnerships / trusts / franchisees

3. Purpose : Ä Purchase of new / old shops/ establishments /


offices / dealer's showroom etc.
Ä Repairs / renovation / modernisation
Ä Furniture / fixtures / electrical fittings /accessories
for the shop/office etc.

4. Type of facilities : Term Loan

5. Quantum of Finance : Maximum of Rs.20 lacs

6. Margin : 25% and 40% for purchase of old premises

7. Rate of Interest : As applicable to SIB TLs below Rs.25 lacs

8. Security: :
- Primary Hyp. / pledge / mortgage / assignment of the assets
purchased out of Bank's finance
- Collateral
9. Processing fees As applicable to SSI / SBF units
10. Repayment : 3 to 7 years excluding a maximum moratorium period of
6 months

11. Documentation : As per simplified SME documentation

12. Special features : Ä No Objection Certificate and No Lien Letter to


be invariably obtained from the owner-lessor of
the property in the case of rented property
Ä Repayment period should be well within the lease
period in the case of rented property.
Ä Opening of SB / Current Account is mandatory
Ä DSCR to be minimum 1.75
Ä Property on hire purchase/ lease from govt.
departments /PSUs should not be financed
Product Highlights:

This is a unique product aimed at the trade sector for purchase /modernisation/ expansion /
upgradation of shops dealer/show rooms, franchisees, repair centres / Garages / buildings for
professionals etc. upto Rs.20 lacs by way of a term loan repayable on easy terms.

Marketing Tips:

• Shopping complexes / malls are ready source of business for this product.
• Traditional shopping / business areas in towns and cities can be a source for
marketing this product for renovation and facelifting.
• Takeover of similar loans extended by other banks can be considered subject to
fulfilment of take over terms.

FAQs

Ä Can this loan be given if the shop premises is owned by a close relative of the owner of
the shop who has applied for the loan?

Yes. Often the premises is in the name of the father or the wife of the applicant. The loan
can be given in such circumstances also subject to obtention of usual no objection/ no
lien letter from the owner of the property.

Ä Can this loan be extended to travel agents for setting up an office?

Yes. This facility can be extended to those engaged in services such as travel agencies,
caterers, hotels, eateries, beauty salons, etc.

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SBI SHOPPE PLUS
13. Target Group : Present and prospective owners of shops/ offices/ show-
rooms/ training centres/ service centres/ garages/ offices
for Chartered Accountants / Consultants

14. Eligibility : Individuals over 21 years of age with a steady source of


income and possessing necessary approvals for
construction of proposed structure

15. Purpose : This product is a combination of Housing Loan and SBI


Shoppe. The applicant is expected to first apply for a
housing loan and on completion of the house he
becomes eligible for a term loan on the lines of SBI
Shoppe for setting up an office / shop for purchase of
furniture, equipment , etc.

16. Type of facilities : 2 Term Loans

17. Quantum of Finance : 1st term loan as per housing loan scheme and second
term loan for 75% of cost of setting up office / shop

18. Margin : 1st term loan - as per housing loan


2nd term loan - as per SBI Shoppe – 25%

19. Rate of Interest : 1st term loan - as per housing loan


2nd term loan – as per SBI Shoppe less 0.25% if eligible
under SBI Credit Khazana

20. Security: : Hypothecation of the assets purchased out of Bank's


- Primary finance and EM of land building for 2nd and 1st term loans
respectively
- Collateral
Extension of EM for 2nd term loan

21. Processing fees As per housing loan for 1st term loan
As applicable to SSI / SBF units for 2nd term loan

22. Repayment : As per housing loan for 1st term loan


As applicable to SBI Shoppe for 2nd term loan

23. Documentation : As per housing loan for 1st term loan


As applicable to SBI Shoppe for 2nd term loan

24. Special features : ¾ This is a combination of housing loan scheme


and SBI Shoppe for the use of professionals such as
Chartered Accountants lawyers, consultants,
Product Highlights:

This is a unique product aimed at the services sector for purchase of office – cum - residence for
professionals etc. Credit can extended by way of a term loans repayable on easy terms.

Marketing Tips:

¾ The local chapter of the Institute of Chartered Accountants of India would provide
a list of chartered accountants who are in practice. They could be contacted
individually or by holding a seminar or meeting for them to explain the features of
this unique scheme which also has substantial tax benefits.

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EXPRESS VENDOR DISCOUNT SCHEME

1. Target Group : Vendors of reputed Corporates and industry majors

2 Eligibility : COCC I will accord administrative clearance for selection


of industry majors(IMs) whose vendors become eligible
for this facility

3 Purpose : To finance specific receivables against goods / services


supplied to the identified industry major

4 Type of facilities : EVDS limit for 1 year renewable on case to case basis

5 Quantum of Finance : The aggregate of the EVDS limits for an IM will be given
by the COCC I. The individual limits for the vendors will
be given by CAG
The period of credit will be stipulated by the COCC I .

6 Margin : Generally nil

7 Rate of Interest : Will be approved by the COCC I

8 Security: :
- Primary Generally unsecured.
- Collateral
9 Processing fees As applicable to C&I

10 Repayment IM has to pay on due date of each receivable but


Bank has recourse to vendor in case of default by the
IM
11 Documentation : Specially designed by the Law department

12 Special features : Ä The advance is self – liquidating in nature


Ä As part of supply chain financing the Bank is
providing relief to the industry majors in better
management of their funds.
Ä The products have low risk profile

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PRE –SHIPMENT EXPRESS VENDOR SCHEME

1. Target Group : Vendors of reputed Corporates and industry majors

2 Eligibility : COCC I will accord administrative clearance for selection


of industry majors(IMs) whose vendors become eligible
for this facility

3 Purpose : To finance Working capital needs against purchase


orders from Industry Majors
4 Type of facilities : EVDS limit for 1 year renewable on case to case basis

5 Quantum of Finance : The aggregate of the EVDS limits for an IM will be given
by the COCC I. The individual limits for the vendors will
be given by CAG
The period of credit will be stipulated by the COCC I .

6 Margin : Generally nil

7 Rate of Interest : Will be approved by the COCC I

8 Security: :
- Primary Generally unsecured.
- Collateral
9 Processing fees As applicable to C&I

10 Repayment IM has to pay on due date of each receivable but


Bank has recourse to vendor in case of default by the
IM

11 Documentation : Specially designed by the Law department

12 Special features : Ä The advance is self – liquidating in nature


Ä As part of supply chain financing tne Bank is
providing relief to the industry majors in better
management of their funds.
Ä The products have low risk profile

Back to
Index
TRADERS EASY LOAN (TEL)
1. Target Group : 7. Wholesale and retail traders in agricultural or
industrial commodities
8. Professionals and self – employed
9. Small business enterprises
10. Commission agents engaged in purchase and sale
of food grains and other commodities
11. Cotton ginning mills that purchase cotton and sell it
after ginning.
12. Oil Mills
13. Rice Mills (Rs.5 lacs to Rs.500lacs)
Cold storage units upto Rs.1 crore.
2 Eligibility : Existing customers with a satisfactory track record.
New connections including take - over can be considered
subject to take- over norms.
3 Purpose : The loan can be considered for acquiring fixed assets fro
the business and/or build up of inventory /current assets.
4 Type of facilities : Cash Credit / Demand Loan/ Term Loan
Working capital finance can be availed either as CC or DL
or partly CC and partly DL
5 Quantum of Finance : Rs.0.25 lac to Rs.500 lacs.
For traders and wholesalers, for professionals and self
employed
The credit needs will be assessed for the purpose stated
and the loan component shall not exceed 20% of the
projected annual turnover or 75% of the capital costs to be
incurred for business or 65% of realizable value of property
whichever is less.
In the case of rice mills, the quantum of finance can be
assessed based on pucca records of the unit and can be
fixed anything between 20% to 40% of the projected annual
turnover.
For existing borrowers who have been sanctioned other
limits the Loan can be sanctioned subject to :-
i) the existing loan accounts have conducted
satisfactorily for the last three years;
ii) the eligible amount ie., the outstandings in the
existing accounts and the proposed loan should
be within 65% of realizable value of the property
mortgaged to the Bank without resorting to
revaluation of the property.

6 Margin : 35% of the realizable value of the property to be


mortgaged or 25% of the costs to be incurred for the
business if TEL is availed for capital expenditure
Rate of Interest : CRA assessment is dispensed with for this product.
CC / DL – 0.25% below SBAR – Minimum of10.50%
Term Loan - 0.25% above SBAR - Minimum 11.00%
ZCC has been delegated with powers to reduce the interest
rates by 0.50% based on value of collateral, value of
connection and the level of competition.
8 Security: : - Hypothecation of stocks and receivables
- Primary
- EM of land and building or tangible security by way of
- Collateral
TDRs, NSCs, etc. Open land whether inside or outside
the municipal limits should not be accepted as collateral. In
exceptional cases, on business considerations, approval
may be sought from SMEBU, Corporate Centre for
accepting open land as security.
9. Processing fees Working Capital limits (FB + NFB)
For loans upto Rs.2lacs – Rs.250/-
For loans above Rs.2lacs – Rs.250/- per lac or part
thereof, - Maximum Rs.10lacs
For Term Loans above Rs.2lacs
Upfront fee of 1% of the loan amount to be recovered

10 Repayment Cash Credit - On demand


Demand Loan - 36 months
Term Loan - Upto a maximum of 60 months based on
cash flows in monthly / quarterly / half yearly installments

11 Documentation : As applicable to working capital advances/ term loan for


trade and services sector
12 Special features Ä CC limit is valid for one year and has to be
renewed every year
Ä Stock statements need to be furnished at the
time of sanction and at quarterly intervals, as at
the end of February, May, August and
November thereafter.
Ä Stock statements waived for TL and DL
Ä Inspection should be at quarterly intervals
Ä In case the loan is by way of CC, the credit
summations should be at least 200% of the CC
limit.
Ä TL/DL should be with monthly repayment
schedule and has to be reviewed annually.
Product Highlights:
This is a product which is very user friendly in as much as the process of assessment of the
limit and delivery has been simplified and the need for periodical stock statements has
been reduced to the minimum.
Marketing Tips.
This is suitable for a large number of traders in the medium range who are now unable to access
bank finance due to financial compliances which are not always prevalent in the particular trading
activity. The rate of interest is very competitive. The loan can be restored after 6 months in case
the conduct of the loan has been regular.
Back to
Index
APPLICATION FORM FOR MORTGAGE LOAN (TRADERS EASY LOAN)
TRADE & SERVICES SECTOR

1. Name of the Unit :


2. Address along with :
Telephone No. / Fax No./
e-mail if any

3. Activity : Trading in ………………………..


Services : ………………………..

4. Date of Commencement
of business

5. Constitution : Proprietorship Partnership

(Please tick ( )) Corporate Any other

6. Details of Proprietor / Partners / Directors etc.

Age Qualification Means*


Name

• Opinion Report on the Bank’s prescribed format should be prepared by branch officials.

7. Present credit facility enjoyed, if any :

Name of the Bank & Branch Facility* Limit Outstanding

• In case no credit facility enjoyed and only a current account is maintained please advise specifically.

8. Associate / Sister concerns, if any :

Name of Partners / Banking with


Name of the Unit Proprietor
9. Credit Facilities Required :

Fund Based :

Term Loan :

Non-fund based

Letter of Credit :

Bank Guarantee :

10. Details of Security Offered :


Primary :

Collateral :

(i) Immovable Property

Market Value
Description of Name of the owner*
Property

(ii) Liquid Securities :

Name of the Face Value When Acquired Present


Description Owner* Value

• If owner is other than the proprietor / partner of the firm (i.e. guarantor), details of the guarantor viz. Name,
Age, Residential Address and Phone No. etc. should be given :

Name of the Guarantor & Age Qualification Means


Address

11. Key Financial Parameters :


(for three years)

As on 31.3……. As on 31.3……. As on 31.3…….


(i) Sales
(ii) Net Profit
(iii) Depreciation
(iv) Cash Profit
(v) Tangible Net Worth
I / We declare that the information given in the application form are true, correct and complete

and that they shall form the basis of any kind of facility State Bank of India may decide to give

under the SBI Trader’s Easy Loan Scheme. I / We confirm that I/We are not defaulters of any

Bank. I / We also confirm that I / We have / had no insolvency proceedings against me/us nor

have I / we ever been adjudicated insolvent. I / We undertake to abide by the Rules and

Regulations of State Bank of India in respect of SBI Trader’s Easy Loan Scheme.

Signature of Borrower

Date :

Place :

List of Documents to be attached :

1. Copy of collateral security being offered.


2. Latest copy of income-tax return / Assessment order etc.
3. Statement of account from the existing banker for the last 6 months.
4. Copies of relevant license, documents pertaining to ownership / tenancy / lease agreement etc., in respect
of premises where activity will be carried out.
FINANCE TO RESTAURANTS

Particulars Details
Target Group Owners of
Restaurants
Fast food chains
Eligibility Individuals (proprietorships)
Partnership firms
Corporates
Trusts (with borrowing powers)
Purpose For purchase of Kitchen equipments
For investment in Interior decoration
For purchase of furniture and fixtures
For purchase of land and construction of buildings
Nature of facility Term loan or overdraft.
Tenure of Loan Repayment period of up to 7 years when land and building cost
included in loan, otherwise 5 years.
Quantum of Investment in the Restaurant for the aforementioned purposes less
finance margin / promoters contribution which ever is lower.
Security
Primary Hypothecation / Pledge of the assets financed by the Bank
Collateral Extension of charge over current assets, Fixed assets and other
existing collateral if any
Obtaining additional tangible security such as immovable property,
bank deposits, etc. is to be explored wherever possible
In all cases personal guarantees of proprietors/partners/promoters
to be invariably obtained
In cases of corporate restaurants, pledge of promoter’s equity
should be examined
Margin 25%
Insurance All the assets financed by the Bank and the collateral security is to be fully
insured as per extant instructions.
Rate of interest The interest rates on the scheme, for new restaurants and takeovers from
other Banks and financial institutions will be applicable as per the table
below, related to the score obtained by an application in the rating through
the credit evaluation matrix.
New cases
Score Rate of interest
> 75 SBAR (10.25%)
Between 65 and 75 SBAR + 1% (11.25%)
Between 50 and 65 SBAR + 2% (12.25%)
< 50 Not eligible

Takeover cases
Score Rate of interest
> 75 SBAR (10.25%)
Between 60 and 75 SBAR + 1% (11.25%)
< 60 Not eligible
Current SBAR – 10.25%
Inspection Monthly by the Field Officer and quarterly by the Divisional Manager
/Branch Manager as per extant instructions for trade advances.
Discretionary In cases of loan of more than Rs.25 lacs for a new restaurant, the
powers authority one level higher than the sanctioning authority will have the
power to reduce the interest rate by up to a maximum of 1.00% based
on competition.
Similarly, in takeover cases, of loans more than Rs.25 lacs the
authority one level higher than the sanctioning authority will have the
power to reduce the interest rate by up to a maximum of 1.00% based
on competition.

Back to
Index
A B C

CREDIT EVALUATION GRID FOR NEW RESTAURANTS


Category (weight) Factors

Location (20%) • Accessibility 10 5 0


• Purchasing power of population 5 2 0
5 2 0

W orking Draft - Last Modified 2/3/2005 3:28:24 PM


• Competitive intensity
Novelty (10%) • Novelty value and sustainability over long 10 5 0
term

• Restaurant industry experience 10 5 0


Owner (20%)
• Proportion of equity 10 5 0

Printed 1/31/2005 11:40:06 AM


Collateral (20%) • Loan to collateral ratio 20 10 0

Repayment • Debt coverage 20 10 0


capability (20%)

Brand Brand image


Image 10%
10 5 0

DETAILED CRITERIA FOR PARAMETERS IN EVALUATION GRID (1/3)

Category Condition Points

Location
• Easily accessible / located on ground floor along main road 5
• Accessibility*
• Requires effort to access (far from population, inside a 2

W orking Draft - Last Modified 2/3/2005 3:28:24 PM


building, commercial complex etc.) 0
• Difficult to access / located in interior or side lane
• Purchasing power of • Affordable for target segment on normal occasions 5
target segment
• Affordable for target segment only on special occasions 2
• Beyond the purchasing power of target segment 0

• Competitive • Low – Few restaurants for target segment 5

Printed 1/31/2005 11:40:06 AM


intensity • Medium – Limited number of restaurants for target segment 2
• High – Large number of restaurants for target segment
0

Novelty

• Novelty value • Novel concept that is sustainable over long term 10


and sustainability 5
• Concept novel but can be easily copied
over long term
• ‘Me too’ – no novelty in the concept 0

* Restaurants with novelty value/brand and easy accessibility can attract customer from all across the city. Me too
restaurants will mainly attract customers from nearby localities and location on main road is a great advantage

DETAILED CRITERIA FOR PARAMETERS IN EVALUATION GRID (2/3)

Category Condition Points

Owner

Working Draft - Last Modified 2/3/2005 3:28:24 PM


• Restaurant • >= 3 years 10
industry • >= 1 years 5
experience
(as owner or key • < 1 years 0
person)

• Proportion of • Debt/equity <= 1 10


Printed 1/31/2005 11:40:06 AM

personal equity • Debt/equity <= 1.5 5


• Debt/equity > 1.5 0
DETAILED CRITERIA FOR PARAMETERS IN EVALUATION GRID (3/3)

Category Condition Points

Collateral

• Loan to collateral • >= 50% 20

Working Draft - Last Modified 2/3/2005 3:28:24 PM


ratio • >= 25% 10

• < 25% and >10%* 0

Repayment
capability • >= 2 20
• Debt service • >= 1.5 10
coverage • < 1.5 0

Printed 1/31/2005 11:40:06 AM


(compare sales estimate
with sales of similar
restaurants in region)

Brand

• Reputed chain of restaurants in region 10


• At least one well known restaurant 5
• Brand image
• Unknown 0

* Minimum collateral is 10% below which proposal will be rejected

CREDIT EVALUATION GRID FOR RESTAURANTS – TAKEOVER CASES


Score
Category (weight) Factors A B C

• Accessibility 5 2 0
Location (10%)
• Competitive intensity 5 2 0

• Restaurant industry experience 10 5 0


Owner (20%)
• Proportion of equity 10 5 0

Collateral (20%) • Loan to collateral ratio 20 10 0


Modified 2/3/2005 3:28:24 PM
Printed 1/31/2005 11:40:06 AM
Repayment • Debt coverage 10 5 0
capability (10%)

Track record • Track record of payment of loans 20 0


(20%)

Profitability of • Profitability 10 5 0
operations (10%)

DETAILED CRITERIA FOR PARAMETERS IN EVALUATION GRID – TAKEOVER CASES (1/3)

Category Condition Points

Location
• Easily accessible / located on ground floor along main road 5
• Accessibility*

W orking Draft - Last Modified 2/3/2005 3:28:24 PM


• Requires effort to access (far from population, inside a 2
building, commercial complex etc.) 0
• Difficult to access / located in interior or side lane

• Competitive • Low – Few restaurants for target segment 5


intensity • Medium – Limited number of restaurants for target segment 2
• High – Large number of restaurants for target segment
0

Printed 1/31/2005 11:40:06 AM


Profitability of
operations
• Profitability** • Positive profit 10
• Loss making 0

* Restaurants with novelty value/brand and easy accessibility can attract customer from all across the city. Me too
restaurants will mainly attract customers from nearby localities and location on main road is a great
advantage
** If restaurant has been in existence for < 1 year projections based on available sales figures may be used to
assess profitability 6
DETAILED CRITERIA FOR PARAMETERS IN EVALUATION GRID – TAKEOVER CASES
(2/3)

Category Condition Points

Owner

• Restaurant industry experience


(as owner or key person)
W orking Draft - Last Modified 2/3/2005 3:28:24 PM
• >= 3 years 10
• >= 1 years 5
• < 1 years 0

• Proportion of personal equity

Printed 1/31/2005 11:40:06 AM


• Debt/equity <= 1 10
• Debt/equity <= 1.5 5
• Debt/equity > 1.5 0

DETAILED CRITERIA FOR PARAMETERS IN EVALUATION GRID – TAKEOVER CASES (3/3)


Category Condition Points

Collateral

• Loan to collateral • >= 50% 20

W orking Draft - Last Modified 2/3/2005 3:28:24 PM


ratio • >= 25% 10

• < 25% and >10%* 0

Repayment
capability • >= 2 10
• Debt service • >= 1.5 5

Printed 1/31/2005 11:40:06 AM


coverage • < 1.5 0
(compare sales estimate
with sales of similar
restaurants in region)

Track record of
repayment
• Term loan repayment • Satisfactory track record of repayment of term loans 30
history obligation
• Default on repayment of term loan obligation 0

* Minimum collateral is
10% below which
proposal will be rejected
Application cum Interview form

State Bank of
India
Branch
Application cum interview form for trade and services

(Restaurants)

1. Name of the Unit


2. Address of the Unit
Phone
No. Fax
No. Premises owned / rented
3 Address of Reg. Office in case of
Corporates

Premises owned / rented

4 Trade / Services in
5 Year of commencement of business
6 Experience in the line of activity
7 Constitution
8 Details of reconstitution in the past three

9 Details of Proprietor / Partners / Directors


Name & Age PAN Residential Ph no / Net Worth *
Qualificatio Address Mobile
n

10. * Opinion report on the bank’s prescribed format should be prepared.

11 Details of existing banking arrangements


Name of the Facility Limit Outstanding Banking since
Bank / Branch
12 Details of Associate / Sister / Identical firms:
Name of the Name(s) of Banking with Limit Outstandings
unit pro/ partners

13 Details of registration under Shops


& Establishments Act / Sales tax
Act
14 Position regarding Statutory
assessment under IT / Sales
tax / Any other Year upto
which assessment completed
15 Muncipal / or Local Authorities
permissions / Licences for
running eating houses –

16. Credit facilities required

Fund based Limit required Non fund based Limit required


Cash Credit (Hyp.) Letter of Credit
Term loan) Bank guarantees
Total Total

For term loans – Details of assets to be acquired (pl. enclose detailed list if
Description Details of the Cost Time schedule for
supplier completion

Need for the proposed expenditure


Cost Amount Means Amount
Land & Building Own funds
Equipment Other loans
i) Interiors (specify source)
Decoratio
n ii) Furniture /
Fixtures
iii) Air conditioning
plant
iv) Kitchen
equipmen
t
a) North Indian
Cuisine
b) South Indian
Cuisine
c) Specific
Cuisine d)
Chinese
e) Multi cuisine
Other assets Bank loan
Total Total
17. Security Offered
A Stock (Please give brief details of
stocks)
B Mortgage of immovable properties
(Please furnish details of
properties offered, in whose
names they stand, nature of
mortagge, estimated market value,
priori charges if any)
C Life Insurance Policies, shares
Debentures etc (give details)
D Guarantee (please indicate
Guarantor ,

Place Signature of Applicants

Date
BUSINESS INFORMATION

1. State whether franchisee

2. Details of suppliers/
principals

3. Seasonality of activity
(specific peak & off-peak
periods)

5. Terms of Purchase/procurement
% of Credit purchases to total
purchases %
Period of credit enjoyed Months
Average level of sundry Rs.
creditors
Estimated value of remittances to suppliers by DD/TT pa:
6. Requirement of stocking
Average stock holding Rs.
Availability of storage Rented/owned
facilities/address thereof
Level of competition
i. Whether a specialty Restaurant or General one Any other
special features like volume sales/catering etc.
ii. How many similar Restaurants are located in the area, say within 500 mts.
iii. How many restaurants are running successfully in the neighborhood

iv. Any history of failures of restaurant in the


neighborhood in the last 3 years.

7. Marketing arrangements
Major Buyers/consumers with long term arrangement for supply to
offices. Catering arrangements.

8.Major competitors & their advantages

9. Competitive advantage of the unit.

10. Terms of sales


%
% of Credit sales to total sales

Period of credit given Months


Average receivables level Rs.
% Credit Card sales total sales – (present/projected)
11. Performance Parameters Past/projected
Past three years Projections
31-3.. 31-3.. 31-3.. 31-3..
Sales/income
Net Profit
Depreciation
Cash Accrual
Tangible Net
Worth
TOL/TNW
Details of Security offered

(i) Immovable property


Description Name of Value of Basis of
of property the Owner the Valuation
property
(ii) Liquid securities
Description Name of Face When Present
the Value Acquired Value
owner
Details of Guarantor where applicable
Name of the Age Qualific Net Banking
Guarantor & ation worth With
Address

I/We declare that the information given in the applicationform are true,
correct and complete and that they shall form the basis of any
kind of facility State Bank of India may decide to extend to me/us. I/We
shall furnish all other information that may be required by Bank in connection
with my application. The i nformation may also be exchanged by you with
any agency you may deem fit. You may take appropriate safe guards/action for
recovery of bank dues including publication of defaulters names in
website/submission to RBI.
I/We confirm that I/We have no borrowing arrangements for the unit with any
bank except those indicated in the application. I/We confirm that I/We are not
defaulters of any Bank/any financial Institution. I/We also confirm that there
are no overdues/statutory dues owed by me/us and that I/We have/had no
insolvency proceedings against me/us nor have I/We ever been adjudicated
insolvent. I/We undertake to abide by the Rules and Regulations of State Bank
of India in respect of the facilities being extended to me/us.

Signature of Borrower
Date :
Place
: List of documents to be attached

1. Partnership deed in original (to be returned) and a copy thereof


2. Memorandum & Articles of Association with
certificate of Incorporation in original (to be
returned) and copies thereof
3. Copies of relevant license, documents pertaining to
ownership/tenancy/lease agreement in respect of premises where activity
will be carried out/service or trade
related agreements etc.
4. Latest copy of income-tax return/ sales tax
Assessment order etc.
5. Statement of account from the existing banker for
last 6 months.
6. Copy of the Title deeds relating to collateral
security being offered.
7. Photocopies of PAN card of partners/Directors
wherever available
8. Copies of balance sheets for the past three years
(audited wherever applicable)
9. Statements of personal assets and liabilities of
Proprietor/Partners/Directors/Guarantors
10. Photographs of Proprietor / Partners / Directors/
Guarantors

l
Appraisal form

Name of the Unit /


borrower: Segment :
Sector: Priority / non priority
Assessment of Working Capital / Term Loan

1. Performance & Profitability:


(Rs. in 000s)
Past Project
Ed
31.03…. 31.03 Years Curren Next Yr 31.03 31.03… 31.03…
… t Yr (pro) ….
31.03….
a)Sales /
income
b) Other
Income

Credit score wherever applicable :


2. Working Capital Required:
Estimated average stock holding at any one : Rs
Estimated average receivable outstanding : Rs
at any one
time ----------------------
Less Estimated average credit enjoyed on purchases : Rs.
---------------------
Working capital required (1) : Rs.
---------------------
3. Sources from which required working capital would be met:
Net Working Capital in business (NWC) : Rs
Bank Finance Recommended : Rs.
Other sources : Rs.
-------------------
(2) Rs. (A)
===========
OR

… % of Annual Turnover : Rs. (B)


Working Capital assessed /recommended
A or B above whichever is more ie., : Rs.

* Assessed Working capital @ ….% PAT : Rs.


Stand by line of credit recommended @ …% of above : Rs.
Concessions in service charged proposed if any : And
justifications therefor
Term loan :

Details of fixed Cost price / Own funds Bank finance


Assets estimate
(incl. Taxes)
Land
Building
Others
Total

Comments on Debt / Equity:

Comments on DSCR (in brief):

Analysis based on Risk matrix

Brief comments on limits recommended

In case of renewals comment on conduct of account, credit summations, timely


submission of stock / financial statements, return of cheques issued / cheques
purchased etc should be incorporated.
Terms and conditions of sanction

a. SECURITY:
Facility Primary Collateral Guarantee
WDV Name
MV NW
Valuation dated As on
Description of collateral security :
Deviation from existing security (if any)
b. MARGINS : (FOR EACH FACILITY AS APPLICABLE)

Cash Credit: Existing Proposed


Stocks
Receivables (Cover –
Letter of Credit
BG
Term Loan
c) RATE OF INTEREST:
Facility Pricing
d) REPAYMENT SCHEDULE:
e) INSURANCE
f) SUBMISSION OF STOCK STATEMENTS
g) INSPECTION
h) PROCESSING FEE
i)UPFRONT FEE
j) CONCESSIONS IN SERVICE CHARGES

Appraised by Assessed by Sanctioned by

Signature

Name

Designatio

n Date:

State Bank of India

Branch
ANALYSIS OF BALANCE SHEETS

(Rs. in 000’s)

Liabilities 20 / 20 / 20 /

State Bank of India


Other Banks
Sundry Creditors
Expenses
Loans
Other Liabilities
Total Current
liabilities (A)

Term Loans
Others
Total Deferred
Liabilities (B)

Capital & Surplus


©

Total liabilities
(A+B+C)

Assets 20 / 20 / 20 /

Cash
Investments
Stock
Sundry Debtors
Others
Total Current
Assets (D)

Net fixed Assets


(E)

Miscellaneous
assets (F)
Intangibles (G)
Total
miscellaneous
assets H =
Total assets
(D+E+H)

Working capital surplus / deficit (current assets – current liabilities) Rs.

Tangible Net Worth (C – G) ….. …. … Rs.

Capital Base:

1. Total liabilities / Tangible Net Worth (Ratio) …….


2. Sales / Tangible Net worth (Ratio) …….

Profitability:

3. Net Profit / Sales (Ratio) ……


4. Net Profit / Total capital employed (Ratio) …..
(Including current and deferred liabilities) (Ratio) …..
5. Net Profit / Proprietor’s capital employed (Ratio) ….

Current Position: As on ………..

6. Stock about ……. Months sales


7. Sundry Debtors about ………….. months sales
8. Sundry Creditor about …… months purchases
OPINION / CREDIT REPORT

Name of the unit

i) Partners’ / proprietor’s capital invested in business:

Name of Partner / Capital invested Loans to the firm, Partner’s /


proprietor if any Proprietor’s
over drawings,

Total

Capital of the firm Rs.


Add : Loans from partner / proprietor
Rs. Add:
Reserves and surpluses
Rs. Less:
Partners ‘ / proprietor’s overdraft
Rs. Less
Debit balance in profit & loss account
Rs.

Less : Intangibles, if any Rs.

Tangible Net Worth of the firm / proprietor

Rs. ii) Means of partners / proprietor

(These details should be furnished separately for each partner – if a partner has no
assets, indicate accordingly)

Name of the partner / proprietor :


(a) Details of immovable properties owned.

Name of property Location Realisable value in Details of prior


Rs. charges if any
Total (A)
(b) Details of movable properties :

Nature of assets Realisable value in RS. Details of prior charges, if


Any
Shares
Debentures
Insurance policies
(surrender value)
Other (please
specify)
Total (B)

Total Value of assets (A+B) Rs.

Less Borrwoings agasint total assets mentioned above


Other borrwoings / liabilities Rs.

Add: Investment of the partner in business of the firm


Financed investment of the partner in any other business
(specify details) Rs.

Total net means of the partner / proprietor Rs.

The net means of the partner (Shri / Shrimati. ) can be


conservatively estimated at Rs. The aforesaid information has been verified
from independent market sources.

(Similar information should be furnished for each partner)

iii) (a) Tangible Net Worth of the firm Rs.


(b) Aggregate Net means of the partner Rs.

General Remarks :

(Please comment on (a) business ability, (b) credit enjoyed in the market and (c)
reputation for honesty, integrity, etc.)

Date Branch Manager


STANDBY LOAN TO CORPORATES FOR PURCHASE OF VEHICLES

1. Target Group : Existing corporate borrowers enjoying fund based


facilities of at least Rs.1crore in C&I and SSI segments

2 Eligibility : CRA rating of SB3&SBTL3 and above

3 Purpose : Exclusively for purchase of new vehicles,(cars, vans,


MUVs, mini-bus) for use by promoters/executives of the
unit.

4 Type of facilities : Term Loan

5 Quantum of Finance : 10% of the fund based limit not exceeding Rs.25lacs

6 Margin : 20% of the cost of the vehicle including tax and


insurance

7 Rate of Interest : 1% over SBAR irrespective of the CRA Rating

8 Security: :
- Primary Hypothecation of the vehicle by noting charge with the
RTO
- Collateral
9 Processing fees NIL
10 Repayment In monthly / quarterly instalments not exceeding
60 months

11 Documentation : i) As per simplified SME Documentation


ii) The arrangement letter should indicate that the
release of the Stand-by Loan will be at the sole
discretion of the Bank.
iii) In the case of the loan being extended to partnership
firms, all the partners should request for the release
(disbursal) of the loan.
12 Special features : The loan should be disbursed as and when requested
for, subject to the following conditions:-
i) the limit is not overdue for renewal
ii) the borrowal accounts are regular
iii) conduct of the account is satisfactory.

13 Methodology and A simple note should be put up to the Branch Manager /


Operation of the Division Manager for release of the loan.
account
Product Highlights:

Very often the corporates which are financed by us for their working capital needs resort
to finance from NBFCs or other banks for purchase of vehicles for their CEOs or other
senior functionaries. This product is specially designed for extending credit by way of
term loan upto Rs.25lacs for SB3 and above rated companies enjoying credit facilities of
at least Rs.1crore with us.

Marketing tips:

Ä At the time of renewal of existing working capital limits of eligible units, this
product can be offered as an add-on.
Ä The repayment period is 60 months
Ä The rate of interest is far lower than that charged by car financiers, etc.

Back to
Index
AUTOCLEAN

1. Target Group : .Owners of auto-rickshaws to buy CNG/LPG kits from


authorised dealers

2. Eligibility : Ä Account should be a standard asset if auto is


already financed by us.
Ä Takeover of accounts from other banks is
permitted subject to takeover norms.
Ä Borrowers of other banks are NOT eligible.
Ä Commercial vehicles are also eligible if necessary
permits are eligible.
3. Purpose : Conversion of petrol operated vehicles to CNG/LPG
operated vehicles by fitting CNG/LPG kits
4. Type of facilities : Medium Term Loan

5. Quantum of Finance : Total cost of kits subject to a maximum of Rs25000/-

6. Margin : NIL
7. Rate of Interest : 1.50% below SBAR
8. Security: :
- Primary Hypothecation of vehicle OR group guarantee
- Collateral
NIL
9 Processing fees Waived

10 Repayment 24 months
36 months if vehicle is already financed by us
11 Documentation : Ä Hypothecation Agreement As per simplified SME
Documentation
Ä Irrevocable letter of authority from the borrower
Ä Form 29 &30 (Blank Transfer form)
Ä Form 34 for creation of charge by RTO using
hologram
13 Special features : Ä Obtain the following –
Ä Driving license
Ä Permit
Ä Badge copy
Ä Fitness Certificate issued by RTO
Ä Meter Certificate
Ä Work Order from RTO-BTI form
Ä RTO endorsement on the RC book after fitting the
kit
Ä Fitting of the kit should be at an RTO approved
centre.
Product Highlights:

This is a product designed to assist in cleaning up the environment, especially in metro


and urban centres which have become highly polluted due to auto emissions of all types
of vehicles. This product is aimed at owners of auto rickshaws who are obliged to
convert their engines to run on CNG / LPG in Delhi and Mumbai by a Supreme Court
direction and the others may do so on a voluntary basis. This product is by way of a
term loan to meet 100% cost of conversion subject to a maximum of Rs.25,000/-
repayable in 24 months. Apart from the 2 metros, where it is mandatory, at other places,
it should be ensured that there are adequate refill facilities available for auto rickshaws
which are converted to CNG /LPG.

Marketing Tips:
Our existing borrowers of auto richshaws can be targeted for this product on a longer
repayment period of say 36 months .

FAQs

Ä How do we ensure that refill facilities are available in the centre?

The applicant must produce a work order from the RTO before we consider
this case. Normally the work order is issued only if refilling and other facilities
are available.
Back to
Index
CAR LOANS TO SME UNITS

Car Loan to SME Unit (New Vehicles)

13. Purpose : To provide term loan to the promoter/partner / senior


executive of the SME units having borrowing
arrangements with the Bank or their family members
either in their own name or in the unit's name for
purchase of passenger cars, jeeps, multi utility vehicles
(MUVs) and sports utility vehicles (SUVs) etc.

14. Target Group : The loan can be extended to as many promoters /


partners , senior executives and even their family
members * either on their own name or unit's name
based on their individual net worth and repayment
capabilities.
The promoter / partner/ Senior Executive will act as a
joint applicant whenever the loan is taken in the name of
unit and the joint applicant will also be liable to repay the
loan amount.
In case the loan is taken in the joint names of the unit
and a senior executive, Company or the promoter or the
partner will guarantee the loan.
Availing of car loan in the promoter's name or firm's
name will be left to the choice of the customer.

*Family for this purpose is spouse and children.


15. Nature of Facility : Term loan.

4 Eligibility :
Case I - When the loan is availed of in the name of an
individual: Income: An individual must have a net annual
income of Rs.100,000/- and above for the last year as
per income tax return.
Case II - When the loan is availed in the name of unit:
Since the promoter/partner/ senior executive will be the
joint applicant in this case and liable to repay the loan so
he/she should meet the following criterion:
Income: The joint applicant must have a net annual
income of Rs.100,000/- and above for the last year as
per income tax return.
Definition of “Senior Executive”:
Employees in Top Management, Directors or employees
holding the position of responsibility in an Organisation
or in other words executives falling one level below the
promoter / partner in hierarchy
5 Authorised : All branches catering to SME clients can extend the
Branches schemes to SME clients.

6 Security : • Only hypothecation of the vehicle(s) purchased will


be taken as a security.
• This hypothecation charge must be mentioned in the
books of the RTO.
• No additional security including the charge on the
existing collateral will be asked from SME clients.

7 Assessment : Assessment of loan amount will be entirely based upon


the personal net worth and repayment capabilities of the
individual or the joint applicant when the loan is in unit's
name.

Any loan obtained under this facility will not be linked to


the existing facilities of the SME units and no additional
security will be asked.

8 Loan Amount : The maximum loan amount would be 2.5 times the net
annual income (i.e., income as per latest income tax
return flied less taxes payable).
Regular income from all sources can be 'considered
provided the sanctioning authority is satisfied with the
proof of income.

The income of spouse can be included provided the


spouse guarantees the loan.

For new vehicles, there is no ceiling in loan amount

In any case the EMI / NMI* percentage should not.


exceed 50%
The A.G.M. Region/Branch or the sanctioning authority,
where such sanctioning authority is higher in rank than
A.G.M, will have the discretion to grant a higher loan,
subject to EMI / NMI percentage not exceeding 60% in
deserving cases or owing to strategic reasons.
*(EMI - Equated Monthly Installment) (NMI - Net Monthly
Income) _

9 Margin : 15%

The sanctioning authority will have discretion to reduce


the margin by 5%. A further reduction of 5% can be
given by an authority of the rank of AGM based on the
factors like relationship, business expected, competition,
etc. In any case the total reduction in margin should not
be more than 10%.

10 Rate of Interest : FLOATING RATES:

I. NEW VEHICLES:
Tenure Rates of Interest wef
20.02.2007

Upto 3 years & loans of 0.75%below SBAR


Rs.7.5 lac and above

Upto 3 years for loans less 0.50%below SBAR


than Rs.7.5 lac

>3 to 5 years all loans 0.50% below SBAR

> 5 years upto 7 years all 0.25% below SBAR


loans

11 Penal Interest : Since the applicants under this facility will be our SME
borrowers it should be possible to monitor closely and
prevent the accounts from becoming irregular. However
should some accounts become irregular due care should
be taken to make then regular within 60 days. .

In case the account remains irregular beyond a period of


30 days a penal rate of 1 % p.m. over and above the
applicable rate can be charged.

12 Processing Fee : nil


13 Repayment : a) The loan should be repaid in suitable
monthly/quarterly installments acceptable to the
customer in such a manner that the loan is liquidated
within a period of 7 years. The customer' will have option
for payment in shorter duration.

b) The Equated Installment will be determined on the


basis of the current rate of interest.

c) Post dated cheques should be obtained from the


borrower.
Since we are dealing with the promoter / partner of the
SME units in their individual capacity and not as
employees of the unit check off facility may not be
applicable under this facility. Suitable standing
instructions on their accounts to recover installments
and interest may be taken.

14 Security : As applicable to “P” Segment Car Loan


Documents
15 Insurance : The vehicle purchased is' to be kept comprehensively
insured in the name of the borrower for the market value
or at least 10% above the loan amount outstanding,
whichever is higher, and the Bank's interest as a
hypothecatee should be noted in the certificate of
insurance and insurance policy. A copy of this is to be
retained with the loan documents.

Insurance register is to be maintained

16 Mode of : Amount should be remitted direct to the supplier/dealer


Disbursement by means of a crossed 'Account Payee' demand draft /
banker's cheque which should be forwarded under cover
of a letter as per Annexure car IV.

The beneficiary's Bank name and if possible, Bank


account number should be ascertained from the
beneficiary and mentioned in the draft/banker's cheque.
No charges should be levied for issuance of banker's
cheque/demand draft.

17 Prepayment : Prepayment fee of 2% of the amount of the loan prepaid


Penalty will be levied if the loan is taken over by another bank /
FI Or the loan is repaid before expiry of half the agreed
repayment period Or partial repayment is made in the
first year
No pre payment to be levied if the loan is foreclosed in
order to avail a fresh car loan.
18 Inspection : a) For Standard Asset .accounts periodical. Inspections
are waived after the initial inspection. However, if there
is a default of 2 monthly installments, inspection would
be required. In case of NPA accounts inspections should
be made twice a year.

b) Inspection register is to be maintained properly.


19 Discretionary : To be exercised as per the Delegation of Powers
Power advised by the LHO
20 Papers to be : The following papers to be submitted along with loan
submitted application
¾ 2 passport size photographs of borrower /
guarantor(s).
¾ A copy of passport /voters 1D card / PAN card
¾ Proof of residence
¾ .Copy of Income Tax Return for last two financial
years, duly acknowledged by ITO.

21 Applicants : This facility should not be extended in cases where:


restricted under • The SME units are weak or have turned NP As or
this facility likely to become NP As.
• The relations between branches & promoter(s) is
soured.
• Wherever it is proposed to initiate legal action
against the unit / promoters

Car Loan to SME Unit (Used Vehicles)

1 Purpose : To provide term loan to the promoter/partner of the


SME unit or their family members either in their. own
name or in the unit's name for purchase of passenger
cars, jeeps, Multi Utility Vehicles (MUVs) and SUVs
not more than five years old.
2 Loan Amount Subject to a maximum of Rs. 15 lakhs.

(All other details under this head are same as that of


car loan to SME Units)

3. Valuation : • Certificate of fitness/valuation from a reputed


garage would be required which should be
retained with the loan documents. The garage
should be authorised by the Liaison Officer in the
LHO/ZO in big cities. No valuation certificate is
required if the car is sold under the Maruti True
Value scheme or Automartindia.

• Branches should ensure that the fitness and


valuation is appropriate to the past ownership
pattern. Care should be taken to avoid models,
which have a low second/third hand demand like
Fiat, Uno, Daewoo, Matiz, etc.

4. Take over of loans i) Takeover of car loans may be considered


selectively where:
a. The vehicle is not more than 2 years old
b. It is a single ownership vehicle
c. No insurance claim has been availed and.
d. The account of the borrower with the other bank is
a Standard Asset i.e. all repayments have been
made as per terms of sanction of the original
financier.

ii) The loan should be repaid within 7 years from the


date of the original purchase of the vehicle

iii) Reimbursement of costs of unencumbered


vehicles can also be given under the above takeover
norms and other terms of financing old vehicles up to
2 years of age.

5. Repayment : • For old vehicles recovery should be such that the


loan gets repaid within 7 years from the date of
original sale.

• Maximum repayment period to be fixed as per


age of the vehicle. Repayment schedule will be
fixed while ensuring that the loan gets repaid
within 7 years of life of the vehicle e.g., a five year
old vehicle will be financed with a repayment
period of 2 years only.

(All other details under this head are same as that of


car loan for new vehicles)

6. Rate of Interest : FLOATING RATES only


All Centres:
a. Upto 3 years: 2% above SBAR
b: Above 3 yrs and upto 7 yrs: 2.25% above SBAR

7. Special Remarks : ¾ All the other features for car loan for used
vehicles are same as the car loan for new vehicles.
¾ OD facility is NOT available for SME Car Loan
( both new and used vehicles)

Back to
Index
**************
PARYATAN PLUS

13. Target Group : All segments of tourism namely :


Ä Hospitality Industry
Ä Transportation
Ä Travel agents
Ä Tour operators
Ä Adventure tourism
Ä Religious tourism

14. Eligibility : Individuals, partnerships, corporates, trusts

15. Purpose : Ä Construction / renovation / modernisation /


expansion to Hotels / Yatri Nivas / Dharamshalas,
etc.
Ä Construction of office premises/purchase of office
furniture and computers etc., by travel agents/tour
operators
Ä Purchase of luxury buses/ coaches ,cars, vans
etc., at tourist sites
Ä Purchase of house boats/ luxury boats
Ä Setting up of restaurants/coffee houses/ icecream
parlours etc.
Ä Amusement parks / Ropeways
Ä Health clubs / Spas

16. Type of facilities : CC(Hyp) , TL , LCs, BGs

17. Quantum of Finance : Minimum Rs.2lacs

18. Margin : 20%


40% for purchase of old vehicles of less than 5 years

19. Rate of Interest : As per C&I / SBF rates as the case maybe

20. Security: :
- Primary Hypothecation of assets financed by the Bank
Tangible Collateral of immovable property or
- Collateral
TDRs,NSCs, KVPs,, etc for at least 50% of the loan
amount

21. Processing fees As applicable to C&I / SBF units

22. Repayment : TL 3 to 7 years including start up period not exceeding


18 months
CC Repayable on demand
23. Documentation : As per simplified SME Documentation

24. Special features : Ä Maintenance of Current Account to route all


receipts is mandatory
Ä DSCR - minimum 1.5 in case of vehicles
Ä Appropriate licenses to be obtained
Ä Only skilled / trained persons eligible
Ä Audited financials are desirable
Ä Take over of loans permissible subject to take -
over norms
Ä For tourism related activities, WC limit over
Rs.20lacs or Advance for purchase of more than
10 vehicles under this scheme must be classified
under C&I segment and should be treated as
such for all purposes.
Ä Luxury coaches upto 10vehicles can be financed
under Transport Operators Scheme

Product Highlights:

A comprehensive product aimed at the Tourism industry for providing finance for
various activities such as hospitality industry, transportation and tour operators
have been brought under the ambit of "Paryatan Plus".
No cap is stipulated for this product. Credit facility can be granted by way of TL /
CC / LCs / BGs for the purpose of construction of hotels / rest houses / Yatri
Niwas, Luxury buses / Boats / Amusement Parks, Health Spas, Travel agents
etc.

Marketing Tips:

• Tour operators, travel agencies are ready market for this business.
• Hotels, restaurant owners at tourist sites can be targeted for this product.
• Established and reputed travel agents such as Thomas Cook, Sita travels,
SOTC etc., can be contacted.
• Takeover of existing loans from Banks / FIs is a ready source of business.
TLs extended by Tourism Development Corporation at high rates of
interest can be taken over subject to take over norms being fulfilled.

FAQs
Ä How can we decide whether the term loan for purchase of vehicles by a large
travel agency should be considered under Transport Plus or Paryatan plus ?
Transport plus has an upper ceiling of Rs.7.50 crs.but this product has no
ceiling.
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Enclosure to Circular No. CIRCO/ADV/221/2004-05 dated 14.12.2004

State Bank of India Small Business - Transport Operators


…………….. Branch Interview-cum-Appraisal Form

APPLICATION FOR TERM LOAN / WORKING CAPITAL ADVANCES

1. Personal Data :

1.1 Name of the Applicant :

1.2. Business Address :

1.3. Constitution :

1.4. Experience
Name(s) of proprietor / partners / Age Previous
Office-bearers of co-operative society : experience

1.5. If already owning vehicles, details (like type,


year of manufacture, cost price, present estimated
value, income therefrom, if a loan has been taken
against them, details) :

1.6. Whether the vehicle will be driven by the


applicant) :

1.7. Staff employed :

1.8. In the case of owner-drivers,


a) Number of the dependents of the family :
b) Minimum sustenance amount required for
the family :
c) Present monthly income.
d) Whether belonging to scheduled caste / tribe:
e) If owning land, its size :

2. Date on the vehicle proposed to be purchased :

2.1. Type, make and year of manufacture :


2.2. Fuel used :

2.3. Dealer's name and address :

2.4. Cost: :
(Proforma invoice to be enclosed. In the case of
secondhand vehicles, valuation certificates from
two reputed dealers, workshops to be enclosed)
i) Chassis : Rs.
ii) Body Building : Rs.
iii) Others ( ) : Rs.
------------------------------
Total : Rs.
------------------------------
Applicant's contribution ( % ) : Rs.
------------------------------
Loan required : Rs.
-----------------------------

-2-
2.5. If a working capital loan is required, details
relating to purpose (enclosing estimates /
invoices, where applicable) amount involved,
etc.) :

2.6. Amount of working capital required : Rs.

3. Operational viability

3.1. Carrying capacity of the vehicles (persons / load)

3.2. Route on which or area where the vehicle will


operate :

3.3. Position relating to the obtaining of the necessary


licence / permit :
3.4. Anticipated monthly earnings :

3.5. Factors which assure the applicant of achieving


the above earnings and of a successful business
in his area of operation :

3.6. Particulars of Sales Tax & Income Tax assessments:

4. Repayment :

4.1. Start-up period required, with reasons :

4.2. Monthly repayment towards existing Bank Loan : Rs.


Monthly repayment towards proposed Bank Loan: Rs.
Monthly repayment towards other borrowings
(To be specified) : Rs.
--------------------------
Total : Rs. (A)
--------------------------
Anticipated net cash accruals as per enclosure : Rs. (B)
--------------------------
Debt service ratio : B / A : -----------

5. Security :

6. Any other remarks:

Date : (Signature of borrower).


Place :
Name of the Bank official who interviewed the
applicant
7. Remarks of the Appraising official.

8. Loan recommended, with stipulations:

Date

Recommending Officer Recommending Officer Recommending Officer

9. Section:
Date Sanctioning Authority.
TRANSPORT OPERATORS

OPERATIONAL VIABILITY:

1. Income per month:


i) Number of days in a month the
vehicle will be on the road :
ii) Number of kilometers it will run per day :
iii) Fare / Rate per kilometer : Rs.
iv) Average income per month : Rs. (A)
v) Any other (outside) income : Rs.
vi) Total income (iv) + (v) : Rs. (B)

2. Expenses per month:


Fuel per month = XYZ
N
where
X = Cost of fuel per litre.
Z = Kilometers run per day
Y = Cost of fuel per litre
N = No.of kilometers the vehicle will run
Per litre.

i) Motor and other municipal taxes : Rs.


ii) Insurance premium : Rs.
iii) Garage rear : Rs.
iv) Depreciation : Rs.
v) Interest on borrowings : Rs.
vi) Maintenance expenses : Rs.
vii) Cost of oil, spares, etc. : Rs.
viii) Staff salary : Rs.
ix) Drawings of the operator : Rs.
x) Others : Rs.
--------------------
Total expenses Rs. (C)
--------------------

…2..
..2..

3. Surplus: B - C : Rs.
Income tax,if any : Rs.
Net surplus : Rs.
Depreciation added back : Rs.

4. Net cash accruals : Rs.


---------------------
TRANSPORT PLUS

1. Target Group : Surface transport operators owning more than 10 trucks


/tankers / tippers / luxury buses etc including the
proposed generally complying with eligibility criteria
detailed below

2. Eligibility : Ä Transport operators holding valid national / State


route permits
Ä The promoters/CEO should be IT assesses.
Ä The promoter/ CEO should have experience of 3
years or more in the field, and should have an
annual income of Rs.3lacs as per IT assessment
in the previous year.
Ä Dealings with their bankers should have been
satisfactory.
Ä Should be reputed and IBA approved in the case
of trucks.
Ä Should record a rising trend in income and profits
in the last two years with a profit of at least Rs.3
lacs in the past two years.
Ä Should own more than 10 well maintained and
road – worthy vehicles
Ä Should have had dealings with banks /FIs for at
least 2 years.
Ä Should have a receivable level of within 4 months
Ä Value of orders on hand should be at least 30% of
projected annual turnover.
Ä Average DSCR (gross) :Minimum 2*
Ä Current ratio minimum 1.33*
Ä TOL /TNW maximum 2.75*
(*These norms are relaxable by the sanctioning authority
upto the levels as per loan policy guidelines if 100% tie –
up arrangements are in place.)
3. Purpose : To finance purchase of new transport vehicles and WC
finance against receivables for cost on road ie all costs
such as, invoice price of the chassis, cost of body
building, road tax, insurance, etc..

4. Type of facilities : TL and Cash Credit

5. Quantum of Finance : Corporates Non Corporate


TL& CC
- Rs.10 lacs to Rs.10crs Rs.10lacs to Rs.7.50crs
.
6. Margin : TL & CC 20%

7. Rate of Interest : For TL : 0.25% above SBAR


For CC: 1.00% above SBAR

8. Security: :
- Primary Hypothecation of vehicles financed, spares and
receivables
- Collateral
Other unencumbered vehicles / immovable property for a
value of not less than 25% of loan amount

9. Processing fees 1%

10. Repayment : TL – Maximum of 5 years . EMIs to start from after 3


months. PDCs to be obtained for the entire period of
repayment
CC - Repayable on demand and renewable annually
11. Documentation : As per simplified SME Documentation

12. Special features : Ä Prepayment charges of 1% p.a. for the amount


prepaid and for the residual period
Ä Inspection once year

Product Highlights:

So far, NBFCs have been the major source of finance for fleet owners especially of
surface transport. This product has been designed to take care of the credit needs of
the transport vehicle owners of 10 or more vehicles used for transportation of goods and
passengers and holding valid permits for plying the vehicles either within the state or
inter- state or national permit. The product comprises of a TL portion for financing of
80% of the cost of the vehicle and a cash credit portion to take care of the working
capital needs of the operation to the extent of 80% of the receivables not more than
4months old.

Marketing Tips:

• Exporters of perishables such as seafood, vegetables and milk who use


refrigerated vans for moving their merchandise from the production
location to the processing plants / ports can also provide business for the
Bank under this product.
Back to
Index
ANNEXURE

STATE BANK OF INDIA

BRANCH:

FINANCING FLEET OPERATORS - LOAN APPRAISAL NOTE

NAME OF THE FIRM/COMPANY:

NAME OF THE CHIEF PROMOTER/:


CHIEF EXECUTIVE

CUSTOMER/ A/C NO:

1.a) Personal details:

SR. PARA METERS CRITERIA ELIGIBILITY


NO. (YES/NO)
1. Experience in transport More than 3 years
business
2. Owning a house In own/spouse name or
ancestral (may be
mortgaged)
3. Income Tax Return filed/ For income of 2 lacs and
assessed for last year above

4. Dealing with Banks Satisfactory record

b) Business details:

1. Constitution Pvt./Public Ltd. Company/


Partnership
2. IBA approval and/or For trucks only
Membership of local
transporters association.
3. Continuous profit Last 2 years
4. Income shows a rising trend Last 2 years
5. No of vehicles owned
More than 10 well-
(including the proposed) maintained vehicles (age
not more than 12 years)
6. Maintenance of existing Evidenced by routine
vehicles frequency of servicing/
accident record
7. Dealing with Banks/FIs/ Satisfactory record
NBFCs
8. Assured cash flow Tie up with companies
9. Quality of receivables Up to 3 months of income
10. Value of orders/contracts on Over 30%
hand to Estimated Income (%)
11. Repayment period proposed Up to 5 years
(TL)
12. Liquidity Minimum 1.33 (1.33)
13. TOL/TNW * Maximum 2.75 (3.00)
14. Average gross DSCR (TL) * Minimum 2.00 (1.75)
15. Promoters’ contribution to the Minimum 20%
project (TL)
16. Debt/equity Maximum 2: 1
* May be diluted upto the indicative level as per the loan policy guidelines, as shown in
bracket, for units having 100 % tie-up arrangements.

c) Collateral Security:

1. Value of collateral security (all 25% and above where


existing unencumbered 100% tie-up arrangements
vehicles and others, if any) exist, otherwise at least
/loan amount (%) 50%.

The proposal will be considered acceptable only if the answers are “yes” for all the
above 21 parameters under the eligibility column of sl. no. 1(a), (b) and (c).
(Rs. In crores)
2. Performance & Financial indicators:

As on 31.03 Actuals Actuals Estim (Cur. Projections


(Earlier Year) (Next Year)
Estim.)
PUC
TOL
TNW
TOL/TNW
Cur. Ratio

3. Term Loan :
Commercial viability:
Sales/Income
Net Profit
Cash Accruals
Interest
TOTAL
TL repayments
Interest
TOTAL
Gross DSCR
Average Gross DSCR
Net DSCR
Comments on DSCR (in brief)

4. Assessment of Cash Credit limit:

Receivable levels: (Months/Days)

Estimated Projected
Receivable/Payments Actuals
Receivables
S. Creditors

Assessed Bank Finance:

Estimated
Assessed Bank Finance Actuals Projected
Year
TCA
OCL
WC Gap
NWC
BANK FINANCE (BF)

Brief comments on the assessment of the cash credit limit:


(Additional information may be added to cater to a particular proposal)
5. Recommendations for the proposed facilities:

6. Submitted for sanction.

Signature :

Designation :

Appraised by Assessed by

State Bank of India,


……………………..Branch,
Date:

ANNEXURE-3

STATE BANK OF INDIA

BRANCH:

FINANCING FLEET OPERATORS

LOAN APPLICATION FORM

-----------------------------------------------------------------------------------------------------------
PLEASE FILL UP THIS FORM ONLY IF THE ANSWERS TO ALL THE FOLOWING
QUESTIONS ARE 'YES'
-----------------------------------------------------------------------------------------------------------

1. Whether the promoters have satisfactory record of dealing with Banks and have
never defaulted to any Bank/FI/s?
2. Whether the fleet possesses more than 10 well-maintained vehicles, including
the proposed vehicle/s?
3. Whether the registered/administrative office is situated at metro/urban/semi
urban centre?
4. Whether the unit is earning profit?
-----------------------------------------------------------------------------------------------------------------
PLEASE USE SEPARATE SHEET, WHEREVER SPACE IS NOT SUFFICIENT
-----------------------------------------------------------------------------------------------------------------

A. PERSONAL DETAILS OF THE CHIEF PROMOTER/CHIEF EXECUTIVE

1. a) Name:
b) Son/wife of:
c) Date of Birth:

2. Residential address:

Tel.Nos:
Fax No:
e-mail:

3. Your house is: Owned


Owned (mortgaged)
Rented

4. Academic Qualification:
Is it related to your line of trade?

5. Experience in Transport business


(no. of years and brief details):

6. Your Income Tax Permanent A/c No:

7. Details of Bank account:


Bank and branch:
A/c No:
Opened on:

8. Details of assets:

Land/Building:
(location, value etc.)

ii) Vehicles owned:


(Regn.No, make, model, present value)

iii) Life Insurance Policy


(Policy no, sum assured,
amount paid up, etc.)

iv) Bank deposits


(Bank branch, A/c no., present outstandings)

Jewellery and household goods:


(description, value)

vi) Others (description, value)

9. Details of liabilities:

i) Housing loan details:


Address of the house/flat:
Loan amount:
Repayment terms:
Present oustandings:
Loan availed on:
Bank & Branch:

ii) Car loan details:


Regn.No:
Make & Model:
Loan amount:
Repayment terms:
Present oustandings:
Loan availed on:
Bank & Branch:

iii) Other loan details:


(including loans from
friends & relatives)

B. GENERAL

1. Name of the company/firm:

2. Address:

Regd. office:

Telephone No:

Admn. office:

Telephone No:

Branch office/s:

Telephone No:

3. Constitution:

4. Loan applied for: i) Term Loan: Rs.


ii) Cash Credit: Rs.
------------------
TOTAL Rs.

5. Purpose of the loan:


(Purchase of vehicles, working capital
requirement, etc.)

6. Mode of repayment:
C. BUSINESS DETAILS

1. Year of commencement of business:

2. a) What is the level of competition for the business?

How do you plan to meet the competition?

What are the marketing arrangements?

Please mention about value and details of tie up


arrangements/orders/contracts with clients:

3. IBA approval obtained? If yes, details:

4. i) Details of Bank Account:

Bank/Branch:

A/c No: Since:

ii) Can all sale proceeds be routed through your account with us?
If not, give reasons:

5. What is the quality of your receivables?

How many months’ income do they represent?

Can you give an ageing of your receivables? (as on last 31st March)

AGE AMOUNT PERCENTAGE OF TOTAL


Less than 1 month old
1 to Less than 2 months’ old
2 to 3 months’ old
More than 3 month’s old
Total 100%

What are the means of finance?

MEANS AMOUNT GIVE DETAILS (BANK SHOULD BE


(Rs) SATISFIED ABOUT YOUR ABILITY
TO PROVIDE THE MARGIN)
From own sources
Bank loan
Friends and relatives
Others
Total
7. What is the repayment period you are looking for the term loan?

8. What will be the annual cash accruals?

9. What will be your liability towards payment of installments and interest on term
loan in a year?
10. Whether the cash accruals will be sufficient to take care of the repayment
liability?
11. Brief background of the firm/company:

12. Details of Associate concerns with their borrowing arrangements:

13. Details of major shareholders:

14. Names of Key Managerial & Technical Staff with their


qualification/experience:

15. Are your business operations computerised?

16. Arrangements for periodic maintenance of vehicles:


(Details of routine frequency of servicing, maintenance
procedure, accident record)

17. Anything else you would like to tell about your business.

18. What is the collateral you would be able to offer? Give details.

A. UNENCUMBERED VEHICLES:

REGN. NO. & DESCRIPTION PRESENT VALUE (Rs) BASIS

Total

B. OTHERS, IF ANY:
DESCRIPTION PRESENT VALUE (Rs) BASIS

Total
GRAND TOTAL (A + B):

19. Please tell us about your future plans:

What is the level of income/sales you are projecting for next 5 years? Briefly describe
the basis.

What is the level of receivables you are expecting for next 5 years in terms of
month's income/sales?

20. a) Whether the vehicles come to the headquarters every month?

b) Can the vehicles be available to the Bank for inspection purpose every
month? If yes, how?

I/we certify that all information furnished by me/us is true, correct and complete.
I/we have no borrowing arrangement for the company/firm with any bank
except as indicated in the application form. There are no overdues/statutory
dues owned by me/us or the firm/company. No legal action has been taken
against me/us/firm/company. I/we shall furnish all other information that may
be required by Bank in connection with my/our application. This information
may also be exchanged by you with any other agency, you may deem fit. You,
your representatives or any other agencies as authorized by you, may at any
time inspect/verify my/our assets, books of account, etc. in our office/business
premises as mentioned above. You may take appropriate safeguards/action
for recovery of bank's dues including publication of defaulters' name in web
site/submission to RBI. I/We further agree that my/our loan shall be governed by
the rules of State Bank of India as may be in force from time to time.

For and on behalf of the company/firm

Place:___________

Date: ___________ Signature of Chief Promoter/:_____________


Chief Executive with seal

ENCLOSURES:

1. Details of Existing Vehicles :


Regn.No.:

Model/Year:

Make:

Name of financer:

Amount:

Present outstandings

2. Audited Balance Sheet for last 2 years :

3. Income Tax Assessment/Acknowledged :


copies of last 3 years (Personal & Business)

4. Bank Statement of last 3 years (Business) :

5. Quotations :

6, Copies of Partnership Deed/Certificate of


Incorporation and Commencement of Business/
Memorandum and Articles of Association:

7. Copies of route permits, driving licenses of drivers:

8. Photographs of promoters/guarantors, with their


signatures:

9. Credit Information Sheet of the Promoters/Company/


Firm/Guarantors:

10. Projections for 5 years:

11. Documents of tie-up arrangement:

12. Details of servicing/accident record:

13. Any other papers necessary for loan approval


Transport plus circular
ANNEXURE-4
POST DATED CHEQUES (PDCs)
GUIDELINES

i) Number of cheques to be obtained: 60 PDCs or number of cheques covering the


full repayment period, whichever is less should be obtained. Cheques should be
scrutinized to ensure that these are properly filled in. The 'Crossing Seal' would
be required to be put on the face of the cheque before keeping them in custody.

ii) Date of PDCs: The cheques should preferably be dated prior to the 7th of every
month.

iii) Custody: PDCs should not be retained alongwith the security documents to
avoid unnecessary handling of documents. These should be retained by the
Asst./Deputy Manager (Advances) in joint custody with Manager of the Division
or Accountant or Cash Officer and placed in a fireproof safe/locker.

iv) Handling of cheques returned unpaid: Should any cheque be returned unpaid for
want of sufficient funds, the borrower should be immediately contacted. The
cheque should be represented within a period of three days of its having been
returned unpaid on a written request of the borrower. In the event of the
borrower failing to deposit the amount of the cheque, the undernoted procedure
for initiating legal action under Section 138 of the Negotiable Instruments Act,
1881, should be initiated:

Steps to be taken when a cheque is dishonoured on account of


(a) insufficient fund
(b) closing the account,
(c) stop payment of the cheque (on account of insufficient fund).

Step 1

When a cheque is dishonoured the branch has to give a notice in writing to the
drawer within 15 days. Enter in a separate register for this purpose and monitor.

Step 2
If drawer fails to make the payment of the said amount of money to the Bank
within 15 days of the receipt of the notice mentioned in Step-1, proceed to
Step-3.

Step 3
File a complaint before the Metropolitan Magistrate or First Class Magistrate,
within one month from the date of cause of action.

Example: Cause of action arose on 01.01.2003, under Step-2, (that is failure to


pay within time mentioned there) file the complaint on or before 31.01.2003.

Step 4

During the pendency of the complaint if the drawer desires to compound the
offence, branch can withdraw the complaint on receipt of the amount of the
cheque, interest, legal cost and other expenses.

It may, however, be noted that the initiation of legal action is a measure of last
resort and all efforts should be made to contact the borrower to regularize the
position. However the one month time limit shall not be allowed to be exceeded
under any circumstances, (except under instructions from the Controlling
Office).s
PETRO CREDIT

1. Target Group : Retail Outlets (RO) of petroleum products of Reliance


Industries Limited(RIL).

2 Eligibility : RIL plans to set up 5500 retail outlets for their petroleum
products on “Dealer – owned & Dealer –
operated”(DODO) basis in addition to “Company-owned
&dealer operated”(CODO)outlets . The Bank has entered
into an MOU with RIL for a tie – up arrangement for
financing their retail outlets
Corporate and non – corporates having dealership
appointment letter from RIL are eligible

3 Purpose : To purchase land / to set up infrastructure required / to


set up shops/eateries /ATM / internet kiosks etc.

4 Type of facilities :
Term Loan / Cash Credit

5 Quantum of Finance : TL – Maximum Rs.100 lacs


CC – As per eligibility
For DODO model – 75% of cost of stocks of petroleum
or 4 days cost of sales of petroleum, whichever is lower.
For CODO model – 75% of cost of stocks of petroleum
For stocks of other items such as tyres, spares, and
other related products/services as specified by Reliance,
the credit requirements need to be assessed
accordingly.

6 Margin : 15 to 25 % for TL
25% for WC

7 Rate of Interest : For TL of 84 months and cash credit


Floating rate – 3% below SBAR with monthly rests or
. Fixed Rate - 9.30% with monthly rests for TL of 60
months and rate to be reset every 2 yrs

8 Security: :
- Primary i) Mortgage of land
ii) Hypothecation of all assets created out of
Bank finance
- Collateral i) For dealers with a satisfactory track record of
3 years in any business

9 Processing fees 0.50% of TL and Rs.250/- per lac for WC


10 Repayment For term loan

For fixed rate of interest -:maximum of 54 EMIs starting


after 6 months from the date of first disbursement.

For floating rate of interest :- Maximum 78 EMIs


starting after 6 months from the date of first
disbursement

For Cash Credit


Repayable on demand and renewable every year

11 Documentation : ¾ Revised C&I documents


¾ An undertaking from the borrower that he will not
obtain any further loans for petro-retailing business
without prior written permission from the Bank
¾ A tripartite agreement between RIL, their dealer and
the Bank for RIL to provide support to the Bank in the
event of default by the dealer to the Bank
¾
12 Special features : ¾ Pre-payment charge: - As per extant instructions.
No charge if the fixed rate TL is paid in full in case of
upward resetting of interest rare
¾ Insurance of assets acquired out of Bank finance for
full market value to cover all risks has to be obtained

Product highlights:
RIL standardized project reports for different types of Retail Outlets (RO) depending on
location. The capacity of the different ROs will be 2 and 3 dispensers only. The
maximum projected sales for an RO with 2 dispenser will be 50kl of motor spirit and
300kl of High Speed Diesel per month and 50kl MS and 500kl of HSD per month for an
RO with 3 dispensers. each dispenser will have a storage capacity of 20kl of MS and
40kl of HSD.
The project cost of an RO will be around Rs.60 to 70 lacs excluding cost of land and
working capital requirement of Rs.10 lacs. Security deposit is payable by the RO to RIL

Marketing tips:

RIL is in the process of selecting dealers for retail outlets for selling their petro products.
RIL plans to open 5500 retail outlets in the coming 3 years of which 2000 will be set this
year. A list of such selected dealers will be provided by RIL and these leads will have to
be pursued for booking business under this product.

Back to
Index
STATE BANK OF INDIA
_____________________ BRANCH
APPLICATION CUM INTERVIEW FORM FOR FINANCING OF PETROLEUM RETAIL
OUTLETS UNDER “PETRO CREDIT”

Name of the unit


Address of the unit
Phone No
Fax No
Email/Website Premises owned
Address of Regd. Office in case of
Corporates
Premises Owned/Rented
Address for correspondence
Phone No
Fax No
Email/Website Premises Owned/Rented
Other Services being provided
Year of Commencement of Business
Experience in the line of activity
Constitution
Details of reconstitution in the past
three years

Details of Proprietor/Partners/Directors
Name & Ag PAN Residential Phno/Mobile NetWorth*
Qualifications e Address

* Opinion report on the bank’s prescribed format should be prepared

Details of existing banking arrangements:


Name of the Facility Limit Outstanding Banking since
Bank/Branch

Details of Associate/ Sister/Identical firms:


Name of the unit Name of the Banking with Limit Outstandings
Prop/partners
Details of registration under Shops &
Establishment Act / Sales Tax Act/ Any
other Act
Position regarding Statutory assessment
under IT/Sales Tax/Any other Year upto
which assessment completed

Credit Facilities required


Fund based Limit required Non fund based Limit required
Cash credit (incl of Letters of Credit, if any
bill/chq purchases)
Term loan Bank Guarantees if
any
Total Total

For Term loans – Details of assets to be acquired (pl enclose detail lists if necessary
Description Details of the Cost Time schedule for
supplier completion

Need for proposed


Expenditure

Cost Amount Means Amount


Land & Buidling Own funds
Equipment Other loans
(proforma invoice (specify source)
to be enclosed)
Other assets Bank loan
Total Total
Any other information(including specific reasons for Letter of Credit /Bank Guarantee)
BUSINESS INFORMATION
Nature of activity (strike out whichever Trader(wholesale/retail) Business Enterprise
is not applicable) / Prof & Self Employed / Transport Operator
(State also whether C & F
/Franchisee/dealership / distributorship/
stockist/profession/line of service etc)

In case of C & F / distributorship etc


arrangement is valid upto
Requirement of Statutory licenses /
approvals Give full details
Details of suppliers / principals
Seasonality of activity (specify peak &
off-peak periods)

Terms of Purchase/Procurement
Domestic Imports
% of Credit purchases to total % %
purchases
Period of credit enjoyed Months Months
Average level of Sundry Creditors Rs. Rs.
Purchases under LC included above Rs. Rs.
Estimated value of remittances to suppliers by DD/TT p.a.

Requirement of stocking
Average stock holding Rs.
Availability of Storage facilities Rented/owned
/address thereof

Marketing arrangements
Availability of tie-up arrangements
Major buyers/consumers
Level of competition
Major competitors
Competitive advantage of the unit

Terms of Sales
% of Credit Sales to total sales Domestic
%
Period of credit given Months
Average Receivables level Rs.
Performance Parameters Past/projected
Past three years Projections
31.3.. 31.3… 31.3… 31.3… 31.3…
Sales/Income
Net Profit
Depreciation
Cash Accrual
Tangible Net
Worth
TOL/TNW

For term loans, please enclose projected profitability statements covering the period of
repayment
Details of Security offered
Primary
Collateral
(i) Immovable Property
Description of Name of the Value of the Basis of valuation
Property Owner Property

(ii) Liquid Securities


Description Name of the Face Value When Acquired Present value
Owner

Details of the Guarantor where applicable


Name of the Age Qualification Networth Banking with
Guarantor & Address

I/We declare that the information given in the application from are true, correct

and complete and that they shall from the basis of any kind of facility State Bank

of India may decide to extend to me/us. I/we shall furnish all other information

that may be required by the Bank in connection with my application. The

information may also be exchanged by you with any agency you may deem fit.

You may take appropriate safe guards / action for recovery of bank dues including

publication of defaulters names in website/submission to RBI. I/We confirm that


I/we have no borrowing arrangements for the unit with any bank except those

indicated in the application. I / We confirm that I / We are net defaulter of any

bank / any financial institution I/We confirm that there are no over dues /statutory

dues owed by me/us and I/WE have/ had no insolvency proceedings against

me/us nor have I/we ever been adjudicated insolvent. I/We undertake to abide by

the Rules and Regulations of State Bank of India in respect of the facilities being

extended to me/us.

Signature of Borrower

Date:
Place: Name of the Interviewing Official

List of documents to be attached


1. Partnership deed in original(to be returned) and a copy thereof
2. Memorandum & Articles of Association with certificate of Incorporation in
original(to be returned) and copies thereof
3. Copies of the relevant licence, documents pertaining to ownership/tenancy/lease
agreement in respect of premises where activity will be carried out / service or
trade related agreements etc..
4. Latest copy of Income tax returns/Sales tax assessment order etc.
5. Statement of account from the existing banker for last 6 months
6. Copy of Title deeds relating to collateral security being offered
7. Photocopies of PAN card of partners/Directors wherever available
8. Copies of balance sheets for the past three years (audited wherever applicable)
9. Statement of personal assets and liabilities of
Proprietor/Partners/Directors/Guarantors
10. Photographs of Proprietor/Partners/Directors/Guarantors
APPRAISAL

Name of unit/borrower: Segment: SBF/C&I


Sector: Priority/nonpriority

Assessment of Working Capital/Term Loan


1. Performance & Profitability:
(Rs. In 000s)
Past Projected
31.0 31.03… Years Current Next 31.03 31.03 31.
3… year(est) year … … 03
31.03.. 31.03… …
a) Sales/Income
b) Other Income
c) Total Income
(a+b)
% increase in ‘c’
d) Expenses
e) Taxes
f) Net profit (c-
(d+e))
g) Depreciation
h) Cash Accruals
(f+g)
i) TL repayment
j) TOL/TNW
k) NWC
l) Current Ratio
m) DSCR (Gross)

Credit score wherever applicable:

2. Working Capital Required Rs


Estimated average stock holding at any one time
Estimated Average receivable outstanding at any
one time

Less Estimated average credit enjoyed on


purchases
Working Capital Required (1)
3. Sources from which required Working Capital
would be met:
Net Working Capital in Business (NWC)
Bank Finance Recommended
Other sources
(2) (A)
OR
….. % of Annual Turnover (B)
Working capital Assessed/recommended
A or B above whichever is more i.e.
* Assessed Working Capital @ ….% of PAT
Stand by line of credit recommended @…….% of
above

Concessions in service charges proposed if any and


the Justification thereof

Term Loan:
Details of Fixed Cost price/estimate Own funds Bank Finance
assets (incl.taxes)
Land
Building
Equipment
Others
Total

Comments on Debt/Equity:

Comments on DSCR (in brief):

c. Computation of LC limits for WC


Total Purchase of stocks
Purchase of Stocks under LC
Average monthly purchase of stocks (A)
Average holding of imported stocks
Average usance period (B)
Lead time and transit period (C)
Total of (B) and (C) = (D)
The requirement of LC limit (A) x (D)
Limit recommended

b) Assessment of BG limit
Outstanding BGs as on
Add: BGs required during the period
Less: Estimated maturity/cancellation of BGs
during the period
Requirements of BGs
Recommended BG limit

Brief comments on limits recommended


Terms and Conditions of Sanction
a. SECURITY
Facility Primary Collateral Guarantee
WDV Name
MV NW
As on
Valuation dated

Description of collateral security :

b. Deviation from existing security (if any)

c. MARGINS : FOR EACH FACILITY AS APPLICABLE)


Cash Credit : Existing Proposed
Stocks
Receivables (Cover ---
days)
Letter of Credit
BG
Term loan

d. RATE OF INTEREST :
facility Pricing
e. REPAYMENT SCHEDULE :
f. INSURANCE
g. SUBMISSION OF STOCK STATEMENTS
h. INSPECTION
j. PROCESSING FEE
j. UPFRONT FEE
k. CONCESSIONS IN SERVICE CHARGES

Appraised by Assessed by Sanctioned by

Signature
Name :
Designation
Date :
State Bank of India,
______________ Branch
ANNEXURE TO APPRAISAL
ANALYSIS OF BALANCE SHEETS
Liabilites 20 / 20 / 20 /

State Bank of India


Other Banks
Sundry creditors
Expenses
Loans
Other Liabilites
Total Current liabilities (A)

Term Loans
Others
Total Deferred liabilities (B)

Capital & Surplus (C)

Total liabilities (A+B+C)

Assets 20 / 20 / 20 /

Cash
Investments
Stock
Others
Total Current Assets (D)

Net fixed Assets (E)

Miscellaneous assets (F)


Intangibles (G)
Total miscellaneous assets H =
(G+F)

Total assets (G+|E+H)

Working capital surplus/deficit (current assets – current liabilities) Rs. …………….


Tangible Net Worth (C-G) … …. ……… Rs. ……………

Capital Base :

1. Total liabilities/Tangible Net worth (Ratio) …………


2. Sales / Tangible Net Worth …………
Profitability
3. Net Profit/Sales (Ratio) …………
4. Net Profit/Total capital employed (Ratio) …………
(including current and deferred liabilities (Ratio) …………
5. Net Profit/Proprietor’s capital employed (Ratio) …………

Current Position : As on ………………….


6. Stock about ………….. month’s sales
7. Sundry Debtors about ………….. months’ sales
8. Sundry Creditors about ……………. Month’s purchases
AGREEMENT

This agreement (the "Agreement") is made at ____________ on this _ day of ____ 200 [ ].

AMONGST :

......................................................................................., a corporation incorporated and carrying


on business in India as a Scheduled Bank amongst other places at ....... (hereinafter called the
"Bank", which expression shall, unless repungnant to the context thereof, mean and include its
successors and permitted assigns), the party of the FIRST PART;

AND

Reliance Industries Limited, a company incorporated under the provisions of the Companies
Act, 1956 and having its registered office at Maker Chambers acting through its duly authorized
representative _____________ (hereinafter called the "RIL", which expression shall, unless
repugnant to the context thereof, mean and include its successors and permitted assigns), the
party of the SECOND PART;

AND

*Mr./Ms.M/s. _______________________, * a company incorporated under the provisions of


the Companies Act, 1956 / a partnership concern / a sole proprietorship concern having its
registered office / office at ______________________ acting through its duly authorized
representative / partners / sole proprietor _______ (herenafter called the "Borrower", which
expression shall, unless repungnant to the context thereof mean andinclude its successors /
successors-in-interest / legal heirs, representatives and permitted assigns), the party of the
THIRD PART.

[*Delete which ever is inapplicable]

Whereas RIL is interested in the setting up and running of retail. outlets for the sale of its
products inter alia being Motor Spirit, High Speed Diesel, Lubricants and Auto Liquified
Petroleum Gas (the "Products") at various places in India.

AND Whereas the Borrower has been selected for grant of dealership by RIL vide LOI dated
_____ which has been issued by RIL and duly received and accepted by the Borrower and the
Borrower & RIL has already entered into dealership agreement Dated ................ (the
"Dealership agreement") with the Borrower.

AND Whereas the Borrower owns a piece of land bearing No. ____________ admeasuring
about _________ situated at _______________ (the "said Land") and is bounded as under :

On the North : ___________

On the South : ___________

On the East : ___________

On the West : ___________


And Whereas the Borrower has agreed to run a retail outlet for the sale of Products at the said
Land (hereinafter called the "Retail Outlet").

And Whereas towards construction of the Retail Outlet, payment of security deposit in terms of
clause if the "Dealership Agreement and initial operational expenses of the Retail Outlet, the
Borrower requires funds and thus has requested the Bank ot provide the Borrower with credit
facilities.

And Whereas the Borrower has executed lease deed dated _________ for the Retail Outlet i.e.
the said Land and the structure constructed or to be constructed thereon in favour of RIL.

And Whereas the Borrower has requested the Bank to provide it with the credit facility in a sum
of Rs. ___________________ /- (Indian Rupees facility in a sum of Rs. _____________ (INdian
Rupees ________________________only) (hereinafter collectively called the "Credit Facilities")
for the purpose of construction over the said Land, making the security deposit to RIL and
meeting the working capital requirements.

And Whereas relying upon the representations made by RIL and the Borrower in this
Agreement, the Bank has agreed to grant the Credit Facility to the Brorrow on the terms and
conditions in this Agreement.

NOW IT IS HEREBY AGREED BY AND AMONG THE PARTIES HERETO AS FOLLOWS :

1. The Bank agreed to grant to the Borrower the Credit Facilities, upon the terms and
subject to the conditions hereof and upon/of the terms and conditions of the loan agreements,
overdraft agreement, mortgage deed, instrument of hypothecation, letter of pledge, demand
promissory notes, promissory notes, receipts acknowledgement of debt and securities,
personal guarantee and other guarantees and security, deeds and documents executed/to be
executed provided/to be provided between/by the Borrower and/to the Bank ("Credit
Facilities Documents"), for an amount of Rs. ____________/- (Rupees
_______________________________________________only) an overdraft facility towards
working capital for a sum of Rs._____________/- (Indian Rupees
__________________________ only).

2. The Borrower hereby agrees and undertakes to execute all the Credit Facilities
Documents in the form and manner as may be required by the Bank from time to time.

3. The entire amount of the Credit Facility provided by the Bank to the Borrower along with
interest, fees, charges and expenses due thereon shall be repayable by the Borrower to
the Bank in accordance with the provisions of the Credit Facility Documents.

4. Not withstanding anything to the contrary contained in this Agreement and/or any other
agreement executed/that may be executed between the Bank and the Borrower, and / or
the Credit Facility Documents, the Credit Facility and all amounts outstanding there
under are/shall always be payable by the borrower to the Bank forthwith on demand
beind made by the Bank, which the Bank shall be entitled to make, without any cause or
reason or default by the Borrower, at its sole and absolute discretion.

5. The Borrower shall execute and/or cause to be executed at its own cost and expense
such agreements, undertakings, instruments and forms as may be required by the Bank
from time to time and in the form, manner and substance satisfactory to the Bank for
creation/perfection of any security/further security by way of mortgage, hypothecation or
otherwise over the assets/properties belonging to the Borrower as the Bank may require,
from time to time including without limitation mortgage over the immovable assets of the
Borrower, hypothecation of the Products and book debts/ receivables in favour of the
Bank.

6. RIL hereby represents, agrees, warrants and undertakes that unless the Bank expressly
otherwise authorize RIL in writing :

i. RIL shall pay all amounts due and payable by RIL to the Borrower on account of
volume incentives (presently @ Rs.250/kl of all products for volumes in excess of
125 kl pm) and all other payments that may be paid/made by RIL to the Borrower
by whatever name called (collectively called the "Dealer Dues"), directly to the
account bearing no. _________________ of the Borrower maintained with the
Bank (the "Dealer Account") or to such person or account as may be directed, in
writing, by the Bank from time to time; Borrower hereby irrevocably agrees for such
payment being made to Dealer account.

ii. RIL shall not terminate the dealership agreement with the Borrower for the Retail
Outlet or cease operations at the Retail Outlet unless written notice of such
intention to terminate the dealership agreement has been given to the Bank
simultaneously when RIL gives notice to the Dealer about termination.

iii. RIL shall not refund any part of the security deposit or any other deposit or amount
of any nature whatsoever to the Borrower except to such account and to such
person (including the Bank) as may be required by the Bank and in the manner
directed by the Bank in writing.

iv. RIL shall, in the event of termination of Dealership with Borrower, pay the amount
of rent for the Retail Outlet @ Rs.100/- per kl of all products or Rs.10,000/- per
month whichever is more into the Dealer Account. The Bank shall be entitle d to
appropriate this amount towards the outstanding amount due in respect of credit
facilities.

v. RIL can modify any material terms and conditions of the Dealership agreement
only with prior consent of the Bank which consent shall not be unreasonably
withheld. If the Bank does not respond to the notice of RIL to the Corporate Centre
of SBI, seeking such consent within 10 days of notice seeking such consent, it will
be deemed that SBI has consented for such modification.

vi. RIL shall not handover possession of the Retail Outlet to the Borrower (other than
as a dealer) except with the written permission of the Bank.

7. In the event the Bank intimates to RIL that the Borrower has committed any default
under the Credit Facility Documents and / or in repayment of any amount due and / or
payable under the Credit Facility, and the said dealership agreement has not been
terminated, RIL shall:

i. continue to supply the Products to the Borrower at RIL's normal sale price.

ii. raise Debit Notes on the Borrower with each sales quantity @ Rs. 150 per kl of all
products for which the Borrower hereby expressly authorizes the RIL.
iii. pay the amount collected from the Borrower towards Debit Notes to the Bank or
such person or such account (including Dealer Account) as the Bank may direct, in
writing, and the Bank shall be entitled to adjust the same towards the amount
outstanding under the Credit Facilities.

8. In the event the Bank intimates to RIL that the Borrower has committed a default under
the Credit Facilities Documents and / or in repayment of any amount due and / or
apyable under the Credit Facility and such default has not been rectified for a period of 3
(three) months and the Bank requests RIL to terminate the dealership agreement, RIL,
no later than 30 (thirty) days from the date of receipt of notice in this regard from the
Bank (such notice the "Default Notice"), shall stop supplying the Products to the
Borrower and shall terminate the dealership agreement with the Borrower. The decision
of the Bank as to whether the Borrower has defaulted or not shall be final and binding
upon RIl and the Borrower.

9. That in the event RIl terminates or proposes to terminate the dealership agreement with
the Borrower, for any reason other than in accordance with Clause 8, RIL shall intimate
such termination to Bank simultaneously when RIL give notic eto Dealer about terminate
of the dealership.

10. That upon the termination or expiry of the dealership agreement/dealership of the
Borrower, for any reason, including in terms of Clause 8 and / or 9 above.

i. All amounts outstanding under the Credit Facilities shall forthwith become due and
payable sby the Borrower to the Bank

ii. RIL shall pay all the amounts payable by RIL to the Borrower (including Security
Deposit), on whatsoever account, net of RIL's dues till the date of termination or
beyond, directly to the Bank or the Dealer Account as may be required by the Bank
in writing.

iii. RIL shall provide all assistance to the Bank to enforce/foreclose the mortgage over
the retail Outlet and hypothecation over the Products in favour of the Bank.

iv. Upon successful enforcement/foreclosure of the mortgage by Bank, if the Retail


Outlet is to be sold in pursuance of the enforcement of mortgage of the Bank over
the retail Outlet in favour of the bank, RIL agrees to purchase the same at the
value not less than amount outstanding under the Credit Facilities plus maximum
three month interest (excluding overdue interest and penalty), and to apy the said
amounts to be Bank.

The said period of 3 months shall commence from the date on which the entire amount
under the term loan becomes due and payable by the borrower to the Bank, pursuant to
the acceleration of the term loan by the Bank, as per the terms of the Credit Facilities
document or otherwise. It is understood by the parties that the enforcement/foreclosure
of the mortgage shall be through Court of law / DRT and RIL shall be entitled to
purchase the said retail outlet which includes landk, building and machinery/equipments,
if the Corut/DRT/its official permit/allow RIL to purchase the same and in respect of such
sale to RIL, the cost of the sale i.e. Stamp Duty and Registration Charges etc. shall be
borne by RIL. However, RIL shall make all efforts to purchase the same through
Court/DRT for the value not less than stated above.
Notwithstanding anything to the contrary contained in the Dealership Agreement, Lease
Deed or any other agreement or understanding that may be executed or reached not or
at any time in future, between the borrower and RIl, RIL hereby agrees that the Lease
Deed shall stand terminated in the event of failure of the RIL to remedy breach under
this clause within a period of thirty days from the date of the notice in wirting from Bank
informing RIL of any breach of this agreement or default of RIL observing any of the
above terms and conditions of this agreement. Such termination of the lease deed will
entitle the Bank to enforce the mortgage free of any encumbrances rights created in
favour of RIL and sale of the said land, building and equipment/machinery owned by
Borrower will be without the leasehold rights in favour of RIL, and the purchaser will get
good title to the said land, building, machinery/ equipment, when the said mortgage is
enforced by the Bank.

11. The Borrower hereby confirms that on termination of dealership agreement / dealership
of the Borrower, the Borrower shall sell all the Products then lying in stock to RIL at the
price the same were supplied to it by RIL less any commission/incentive paid thereon to
the Borrower by RIL and all amounts payable by RIL to the Borrower for the same shall
be paid by RIL to the Bank.

12. That in the event, the Borrower has committed a default under the Credit Facilities
Documents and / or in repayment of any amount due and / or payable under the Credit
Facility and / or on termination or expiry of the dealership agreement, the Bank shall be
fully and duly entitled to enforce the mortgage over the Retail Outlet as well as any and
all other security that may be provided for the Credit Facilities by the Borrower and / or
any other person and RIL will assist the Bank in enforcement of such security.

13. RIL hereby agrees and undertakes that RIL shall act on the undertakings given herein
above notwithstanding any contrary instructions issued by the Borrower in this regard.

14. In consideration of the Credit Facility being granted by the Bank to the Borrower, the
Borrower hereby irrevocably and absolutely represents, warrants, convenants and
undertakes with the Bank and RIL that :

i. The Borrower is the absolute and sole owner of the said Land and the said Land

is in its lawful possession and the said land is free from all encumbrances,

mortgages, liens, arrangements, injunctions, notifications, acquisitions, prior

agreements to sell, prior sales/leases and it is free to deal with the said Land in any

manner it may deem fit;

ii. The original of title deeds of the said Land are in lawful possession of the Borrower
and the Borrower shall deposit the same with the Bank with an intent to create
mortgage over the said Land in favour of the Bank, on or before the disbursal of
any amount under the Credit Facilities or as may bee otherwise agreed by the
Bank;
iii. The Borrower shall create mortgage over the said Land and all construction and
improvements made thereon and machinery affixed to the earth thereat from time
to time shall also stand mortgaged in favour of the Bank. However such mortgage
shall not extend to any equipment belonging to RIL'

iv. The Borrower shall keep the Retail Outlet i.e. the said Land and construction, and
improvements made thereon and machinery affixed to the earth thereat and the
Products fully and comprehensively insured at all times, with the Bank as the Loss
payee;

v. The said Land can be used for setting up the Retail Outlet;

vi. The Borrower confirms and certifies that though the Borrower is the owner of the
said Land and shall also carry out construction thereon but since the said Land and
the construction thereon has been/shall be leased by the Borrower to RIL, the
Borrower is and shall at all times be using and occupying the Retail Outlet as a
user and at the will and pleasure of RIL and forthwith on receipt of any notice by
RIL, the Borrower shall remove itself and all its employees and representatives
from the Retail Outlet, without any demur, protest and delay. Provided always on
such removal Borrower shall not remove any of the equipment belonging to RIL or
any of its furniture, improvements, stocks, stocks of Products, equipment, items,
records, and the like, and shall leave the same as on the date of receipt of the said
notice from RIL;

vii. The Borrower irrevocably directs, instructs and authorizes RIL to do all acts, deeds
and things as RIL is required to do in accordance with this Agreement including but
not limited to termination of the Dealership Agreement and credit the amount of
Dealer Dues only to the Dealer Account or any other account or pay the same to
such person (including the Bank) or as may be directed, in writing, by the Bank
from time to time, and in no other manner notwithstanding anything contrary
contained in this Agreement and/or the dealership agreement and/or any other
agreement/document that may be executed now or in future by / between RIL and
the Borrower.

viii. The Bank, without prejudice to any of its other rights, shall be entitled to restrict
and/or prohibit the Borrower from operating and/or making any withdrawals from
the Dealer Account, without any prior or post notice to the Borrower, as and when
the Bank may so deem fit, at its sole and absolute discretion, and from time to time
and the Bank shall not be liable for dishonour of any cheque/payment
instrument/instruction resulting from such restruction and / or prohibition.

ix. The Borrower shall under no circumstances discontinue operations at the Retial
Outlet unless the dealership agreement is first terminated by RIL;

x. The Borrower hereby irrevocably authorizes RIL to do all acts, deeds and things in
accordance with the terms hereof, notwithstanding anyinstructions to the contrary
that it may have given/may give in future, to RIL;

xi. In the event Default Notice has been served by the Bank on RIL, any Products, for
which payment has been made by the Borrower to RIL but not supplied by RIL, RIL
shall not supply the same to the Borrower and shall hand over such payment
directly and only to the Bank;
15. Until credit facility/any of the Credit Facilities are available to the Borrower and till all
amounts there under or arising there from have been paid in full to the Bank, to the
satisfaction of the Bank, the Bank shall have a first and paramount lien and a right of set-
off on all bank balances, including but not limited to amounts lying in the Dealer Account,
fixed deposits with the Bank, property, assets and the like of the Borrower that are or
may come into possession of the Bank from time to time, irrespective of them or any one
or more of them being held in safe custody by the Bank or otherwise, and the Bank shall
also have a right to get any or all of them registered in the name of the Bank or its
nominees.

16. The term of this Agreement shall come into force from the date of this Agreement and
shall continue in full force and effect till such time any amount remains outstanding
under the Credit Facility or the Credit Facility remains available to the Borrower.

17. This Agreement shall not be amended, altered or modified expect b y an instrument in
writing expressly referring to this Agreement and signed by all the parties hereto.

18. If at any time, any provision of this Agreement is or becomes illegal, invalid or
unenforceable under the applicable law or judicial/administrative / governmental
directions, neither the legality, validity nor enforceability of the remaining provisions of
this Agreement shall in any way be affected or impaired thereby.

19. All approvals internal and corporate have been taken by the Borrower for availing of the
Credit Facility and for execution of this Agreement and the Credit Facility Documents
and creation of mortgage over the said Land and creation of security over its other
assets.

20. The provisions of this agreement are without prejudice to any right that the Bank
has/may have, to recover its dues outstanding under the Credit Facility from the
Borrower and/or to enforce the security created/that may be created in favour of the
Bank, in accordance with the Credit Facility Documents and/or in law.

21. Notwithstanding anything to the contrary contained in the Dealership Agreement or the
Lease Deed or any other agreement or understanding that may be executed or reached,
now or at any time in future between the Borrower and RIL, RIL and the Borrower shall
act in accordance with the terms of this agreement.

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed the
day, month and year first above written.

Signed and Delivered by the Bank Signed & Delivered by RIL

through through
Authorized Signatory Mr. ________ Authorized Signatory Mr.
___________

Signed & Delivered by the Borrower

through
Authorized Signatory Mr. ________

Signed & Delivered by the Land Owner


through
Authorized Signatory Mr. ________
DEALER FINANCING
Tie-up with Bharat Petroleum Corporation Limited (BPCL)
To Extend Working Capital Facility for Petroleum Dealers

BPCL is engaged in the business of refining and distribution of petroleum products


through its 6000 strong network of petroleum dealers. Bank has entered into a tie up
with BPCL to provide working capital finance to all their dealers.

02. According to BPCL most of these dealers are under stocking resulting in
inefficiencies in supply chain. A major reason for this has been cited as lack of credit.
This presents us with an opportunity to extend finance and garner significant business.
Each of these dealers requires funding for 3 to 5 days of stocks, i.e. Rs.10.00 lakhs
approximately, on an average.

03. BPCL would circulate the terms and conditions of the arrangement and schedule of
charges (attached herewith as Annexure-I and Annexure-II respectively) to all its
dealers. Under the tie-up, BPCL shall extend the following comforts to the Bank:

a) Provide duly filled up “Opinion Report cum Comfort Letter” (format attached
herewith as Annexure-III) for every Petroleum Dealer willing to take finance from
SBI.
b) Intimate SBI about termination of a Petroleum Dealer’s dealership or any other
disciplinary action against a petroleum dealer like suspension, as soon as the
decision is taken about it. Such intimation shall take place by writing letter
simultaneously to the financing branch and Local Head Office of SBI.
c) In case of petroleum dealers availing working capital limit from SBI, BPCL will not
supply goods on credit basis, either partly or fully and such supplies will be made
against advance payment only.
d) In case of default by Petroleum Dealers (default shall be defined as inactivation of
account or non-payment of interest for more than 30 days), BPCL will make future
supplies to the dealer only if payments are received by BPCL in advance from the
cash credit account of borrower with SBI, BPCL shall put moral pressure on
Petroleum Dealer to pay back his over dues and reactivate the account with the
bank.
e) In the event of default by the Petroleum Dealer (the letter addressed by the bank
to the BPCL as to default by the dealer in making payment of dues etc is sufficient
conclusive proof of default by the Petroleum Dealer and BPCL shall undertake all
such activities required of BPCL to help recover the dues), Bank will seize such
goods of dealers financed by bank and BPCL shall purchase the said seized
goods from bank, subject to the goods meeting the quality parameters, at
realizable price.
f) Not withstanding anything contained in the agreement between BPCL and the
Petroleum Dealer, BPCL undertakes, in case of default and or termination of such
dealership, not to repay any dues (such dues shall include security deposit also)
to the borrower without taking prior approval of Bank. BPCL would make all such
amount available to the financing branch of Bank towards recovery of dues, if any,
after setting off all moneys due to BPCL.
04. As the ticket size of loans will be less than Rs.25.00 lacs, there will be no need for
carrying out CRA for such loans. For all limits above Rs.25.00 lacs CRA exercise has
to be carried out as per extant instructions. The limits can be sanctioned based on
their present turnover and inbuilt cushion of 25% (explained in Annexure-I), so as
to account for price increases. Such limits can be availed by the customers both as
Fund or Non Fund Based limits or a combination of both, subject to the exposure being
taken are within the overall sanctioned limits. All documents as per SME
Documentation should be obtained and KYC norms duly complied with.

05. In cases where CRA exercise has been carried out the interest rates to be charged
are as follows:

Rating as per CRA Interest Rates to be Charged


SB 1 and SB 2 0.75% below SBAR, currently 10.00% p.a.
SB 3 and SB 4 0.25% below SBAR, currently 11.00% p.a.
SB 5 0.75% below SBAR, currently 11.50% p.a.

06. All proposals under the tie-up will be handled by SECC/SMECC as the case may
be, where such processing centres are established. This will apply irrespective of
turnover being higher than stipulated Rs.25.00 crores. A simplified application form is
attached herewith as Annexure IV. A format for carrying out appraisal and the interest
rate matrix for arriving at relevant interest rates is attached herewith as Annexure V.

07. The applicable interest rate for such loans can be decided by using the following
simple matrix:

Opinion Report on Adverse Opinion Interest Rates


Cheques Return Report on Quality (Floating-Linked to
Standards SBAR)
Never Never 0.75% below SBAR
i.e.10.00% p.a.
Never Upto twice a Year 0.25% below SBAR
i.e.11.00% p.a.
Upto twice a year Never 0.25% below SBAR
i.e.11.00% p.a.
Upto twice a year Upto twice a year 0.75% below SBAR
i.e.11.50% p.a.
Upto twice a year More than twice a year Not eligible
Never More than twice a year Not eligible
More than twice a year Never Not eligible
More than twice a year Upto twice a year Not eligible
More than twice a year More than twice a year Not eligible

The data required for above calculation, is a part of the Corporate Opinion Report to be
provided by BPCL and as such the branches need not collect this data. The detailed
format is attached herewith as Annexure-II.
08. Based on the above, cash credit accounts for the Petroleum Dealers in the area of
operations of the Circle may be opened in appropriate branches as per convenience of
the dealers. Wherever, the branch is CINB enabled, internet banking facilities should
be extended to the dealer which will enable him make free remittances to BPCL.
Special care should be taken to ensure that payments from the cash credit
account can only be made to designated BPCL account maintained with Bank.
This restriction will be applicable irrespective of whether payment is being made using
CINB or through cheques or drafts or STEPS. The designated account of BPCL in
which payment is to be made will be intimated in due course.

09. In case of default by the Dealer (default shall be defined as inactivation of account
or non-payment of interest for more than 30 days), the branch should immediately
inform the local office of BPCL and SME BU at LHO. Under the arrangement, on
intimation, BPCL shall restrict supplies to dealer. They will affect supply only against
payment received from designated Branch of SBI where the dealer’s account is parked.

10. In such cases, dealers would first be forced to regularize their account by making
deposits into their loan account. From the deposits so made, branch can deduct up to
25% towards adjustment of irregularities in the account and make available 75% for
remittance of BPCL towards further supplies. Once the account becomes normal,
regular operations can be permitted.

11. In case a dealer defaults twice, the Branch should endeavour to discontinue the
borrowing arrangement by asking the dealer to close the account. Intimation about the
proposed plan of action should be sent to BPCL and SME BU at LHO.

****************************************************************************************
WORKING CAPITAL FINANCE TO DEALERS OF BHARAT PETROLEUM
CORPORATION LIMITED

Purpose To provide working capital facility to Petroleum Dealers


Nature of facilities Cash Credit
Segment SME
Eligible amount of Upto 80% of working capital requirements for
finance stocks/advances paid for stocks. Assessment would
be based on 5 to 7 days of turnover taking into account
the past turnover of the dealer with 25% cushion for
price increase. Past turnover will be made available by
BPCL as a part of Corporate Opinion Report.
Repayment On demand, renewal every year.
Sanctioning As per scheme of delegation of financial powers for
Authority working capital
Rate of interest Interest rates within the band of 10.00% p.a. (currently
0.75% below SABAR, minimum 10.00%) to 11.50%
p.a. (currently 0.75% above SBAR) with monthly rests.
In case, at least 50% collateral can be provided by the
dealer, the interest rate can be reduced on a case to
case basis by 50 basis points from their eligible
interest rates, subject to a lower limit of 9.50% linked to
SBAR with monthly rests. In case, the interest is not
paid by the dealer within the period of 15 days,
enhanced interest at the rate of 2% will be levied from
the 16th day onwards with monthly rests.
Margin 20%
Security a) Primary : Hypothecation of stock/s other assets of
the Petroleum Dealer
b) Collateral / Guarantees : Personal Guarantee of
dealers
Tenure 15 days
Insurance The assets created out of Bank’s finance are to be
insured for full market value, against all risks.
Documentation Revised SME Documents
Review As per Bank’s extant instructions
Processing charges Rs.300/- per lac to be paid in the first year and on
renewal every year.
Others BPCL will provide “Opinion Report cum Comfort Letter”
and other support as detailed earlier.
Remittance Charges • Nil for payment through e-banking platform of SBI
• Rs.100/- transfer when payment made by STEPS
• In case of remittances through any other mode,
normal charges of SBI are applicable. However,
the branch where the dealer avails the channel
financing facility, at its sole discretion, may
reduce/waive the same.
Cash handling • For dealers availing OD upto Rs.5 lacs – Free upto
charges Rs.1 lac/day and Rs.20/lac thereafter
• For dealers availing OD more than Rs.5 lacs – Free
upto Rs.3 lac / day and Rs.20/ lac thereafter.

Back to
Index
Annexure III

Opinion Report Cum Comfort letter (on Letter Head of BPCL)

1. Name and address of dealer


2. Name of key persons and their designations
3. Territory assigned to dealer
4. Year of appointment of dealer
5. Identification Code
6. Range of products stored (please tick)
a. Diesel
b. Lubes
c. Petrol
d. Others
(Please specify) ……………………….
Sales through dealer (last two years and current year till date)
Brand Unit Sales 31.03.2006 31.03.200
Name (Year till date) 5
Diesel Qty in KL
Value (Rs.Million)
Petrol Qty in KL
Value (Rs.Million)
Lubes Qty in KL
Value (Rs.Million)
Others Qty in KL
Value (Rs.Million)

7. Conduct of Dealer (Past 12 months)

Cheque returns (Please tick)


More than twice a year Upto twice a year Never
Delay in Payments (Please tick)
More than twice a year Upto twice a year Never
Quality related issued (include events like notices for poor quality/adulteration,
temporary suspension)
More than twice a year Upto twice a year Never

8. Limits recommended (Final decision as per bank’s policy)

9. Peak Limits recommended (Final decision as per bank’s policy)

We hereby confirm that the information given above is true to the best of our knowledge
and shall be treated strictly private and confidential and without any liability on the part
of Company for any credit decision taken by bank and accept the terms and conditions
as started in MOU signed by Bank and BPCL dated :

Name of the Authorised Official :


Mr/Mrs _____________________________ Signature
Designation _________________________
Date : Office Stamp and Seal
Annexure IV
STATE BANK OF INDIA

…………………. BRANCH

APPLICATION CUM INTERVIEW FORM FOR FINANCING OF WORKING CAPITAL


FACILITY TO THE PETROLEUM DEALERS OF BHARAT PETROLEUM
CORPORATION LTD (BPCL) UNDER SBI-BPCL TIE UP ARRANGEMENT.

1. Name of the unit

Identification Code :
2. Address of the unit

Ph. No:

Fax No.

Email / Website
Premises owned/returned
3. Address of Regd. Office in
case of Corporates

Premises owned/returned
4. Address for correspondence

Ph. No.

Fax No.

E-mail / Website

5. Other business, if any

6. Year of Commencement of
Business
7. Experience in the line of
activity
8. Constitution

DETAILS OF PROPRIETOR / PARTNERS / DIRECTORS

Name & Age PAN Residential Phone / Net


Qualification Address Mobile Worth
(Opinion report on the bank’s prescribed format should be prepared)
DETAILS OF EXISTING BANKING ARRANGEMENTS

Name of the Faciliity Limit Outstanding Banking since


Bank/Branch

DETAILS OF ASSOCIATE/SISTER/IDENTICAL FIRMS

Name of the Name of the Banking Limit Outstanding


unit Prop/partners with

Particulars of registration under


Shops & Establishment Act/Sales Tax
Act / Any other Act.

Position regarding Statutory


Assessment Under IT/Sales Tax/Any
other Year upto which assessment
completed

Distance of the unit from the


distribution point k.m.
Mode of Transportation
Storate Capacity of the Unit No. of tanks –
k.l.
Mode of payment to BPCL (please
specify)

TERMS OF SALES

% of Credit sales to total sales

Period of Credit given


Months
Average level of receivables
Rs.

Range of products : a. Diesel b. Lubes c. Petrol d.


others(Please specify)

Brand Name Unit Sales


31.03.05 (A) 31.03.06(A) 31.03.07(E)
Diesel Qty in KL

Value (Rs)

Petrol Qty in KL

Value (Rs)

Lubes Qty in KL

Value (Rs)

Others Qty in KL

Value (Rs)

CREDIT FACILITIES REQUIRED

Fund based Limit required Peak limit required (if any)


Cash Credit

DETAILS OF SECURITY OFFERED

Primary

Colleteral

IMMOVABLE PROPERTY

Description of Name of the Value of the Basis of valuation


Property Owner Property
(Rs./lacs)
LIQUID SECURITIES
Description Name of the Face Value When Present value
Owner acquired

LIQUID SECURITIES

Name of the Age Qualification Net worth Banking with


Guarantor & Address

I/We declare that the information given in the application form are true, correct and
complete and that they shall from the basis of any kind of facility State Bank of India
may decide to extend to me/us. I/We shall furnish all other information that may be
required by the Bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate safe
guards/action for recovery of bank dues including publication of defaulters names in
website/submission to RBI. I/We confirm that I/we have no borrowing arrangements for
the unit with any bank except those indicated in the application. I/We confirm that I/We
are not defaulter of any bank/any financial institution. I/We confirm that there are no
over dues / statutory dues owned by me/us and I/We have/had no insolvency
proceedings against me/us not have I/we ever been adjudicated insolvent. I/we
undertake to abide by the Rules and Regulations of State Bank of India in respect of the
facilities being extended to me/us.

Date :

Place :

Signature of the Borrower

Name of the interviewing Official

Designation :
LIST OF DOCUMENTS TO BE ATTACHED

1. Partnership deed in original (to be returned) and a copy thereof

2. Memorandum & Articles of Association with Certificate of incorporation in original


(to be returned) and copies thereof.

3. Copies of the balance sheet (s) of the firm / company for past three years

4. Latest copy of Income tax, sales tax assessment order etc.

5. Statement of account from the existing banker for last 3 months

6. Photocopies of PAN card of partners / Directors wherever available

7. Statement of personal assets and liabilities of proprietor / partners / directors /


guarantors

8. 2 copies of photographs of proprietor / directors / partners

9. Copies of the relevant license / statutory clearances, documents pertaining to


ownership / Tenancy / lease agreement in respect of premises where activity will
be carried out / Service or trade related agreements etc.

10. Copy of Title deeds relating to collateral security being offered.


Annexure V
APPRAISAL

Segment : SBF/C&I
Sector : Priority / non priority
Name of the unit / borrower :
Assessment of Working Capital (Cash Credit)

1. Performance and Profitability


(Rs.in lacs)
Years 31.03.05(A) 31.03.06(A) 31.03.07(E)
(a) Sales / Income

(b) Other income

% increase in ‘a’

c) Net profit

d) Depreciation

e) Cash Accruals (d + e)

f) NWC

g) Current Ratio

Note : Where the dealearship is not generating adequate profit, appraising official
should examine the feasibility of the unit before recommending the limit.
WORKING CAPITAL REQUIREMENT

a) Estimated Annual Turnover : Petrol


Diesel
Lubes#
b) Required working capital (5 to 7 days
average turnover) @ For Petrol/Diesel
#for Lubes
c) Add cushion for price increases

d) Total Working Capital requirement (b+c)

e) Borrower’s margin – 20%

f) Eligible Bank finance (d-e)

g) Recommended limit
@ Depending on the distance of the unit from the delivery point
# For arriving at the finance needed for stocking lubes, the period may range from 1
month to 45 days, depending upon past trends.
Terms and conditions of Sanction

I. SECURITY
Primary

Collateral

Guarantee Name Net worth


(as on )

II. OTHER TERMS AND CONDITIONS:

Rate of Interest (as per matrix)

Margin (20%)

Tenure 15 days

Insurance The assets created out of Bank’s finance are


to be insured for full market value, against all
risks
Review

Documentation

Processing charges

Others Opinion report cum comfort letter from BPCL

Submission of stock
statements
Inspection

Remittance Charges

Cash handling charges

Concessions in service
charges (if any)

Remarks :
Appraised by Assessed by Sanctioned by

Signature :

Name :
Designation :
Branch :
Date :
RISK MATRIX FOR APPLICABLE INTEREST RATE

Name of the Unit/Borrower :

Opinion report Adverse opinion Interest rates Applicable


on cheques report on quality (Floating-linked to rate
return standards SBAR)
Never Never 0.75% below SBAR
i.e. 10.00% p.a.

Never Upto twice a year


0.25% below SBAR
i.e. 11.00% p.a.
Upto twice a year Never 0.25% below SBAR
i.e. 11.00% p.a.
Upto twice a year Upto twice a year 0.75% below SBAR
i.e. 11.00% p.a.
Upto twice a year More than twice a Not Eligible
year
Never More than twice a Not Eligible
year
More than twice a Never Not Eligible
year
More than twice a Upto twice a year Not Eligible
year
More than twice a More than twice a Not Eligible
year year

Pricing (as per Matrix) :

Available Collateral Security :


( % of loan amount) ____________________________

Effective Interest rate :

Note : Interest rate can be reduced by 50 basis points if collateral securities are
available at least 50% of the loan amount.

Share of SBI in inventory funding


Share of SBI as % of total cash credit limit for inventory financing of dealer

If 100% is funded by SBI - 20 marks

If 75% or more is funded by SBI - 15 marks

If 50% or more is funded by SBI - 10 marks

If 25% or more is funded by SBI - 5 marks

If less than 25% is funded by SBI - 0 marks

Score Interest Rate (at SBAR of 11%)


80 or more Marks Minimum 9.50% p.a. (1.50% below
SBAR) linked to SBAR
60-79 Marks Minimum 10.00% p.a. (1.00% below
SBAR) linked to SBAR
40-59 Marks Minimum 10.50% p.a. (0.50% below
SBAR) linked to SBAR
20-39 Marks Minimum 11.00% p.a. (SBAR) linked
to SBAR
Below 20 Marks Application to be rejected

Annexure 4

• Last 12 months Sales


• Next 6 months projections
• Last 3 year Financials (Latest Yr + Last 2 Years Audited) with Schedules
• CA Certified Networth Statement of Directors / Partners
• MOA & AOA / Partnership Deed
• LOI issued by Manufacturer in case of a newly appointed dealership

Annexure 5
(On the Letterhead of borrowing company)

Date :
To :
The Branch Manager,
State Bank of India
……………………Branch
Dear Sirs,
Distributor Financing Programme
We refer to your letter no _______________ dated _____________ and thank you for
offereing us a credit facility under your Distributor Financing Programme to finance our
purchases from Tata Motors Limited.

We request you to make payments directly to the designated account to Tata


Motors Limited as per the details of invoices provided by them through electronic
form. I/We hereby confirm to pay to you all dues as per these invoice details
raised by Tata Motors Limited on us on the agreed credit terms with you.
We also confirm that all commercial disputes will be settled directly with Tata Motors
Limited and we will pay SBI the full value of Invoices discounted.

Yours faithfully,

(Authorised Signatory with rubber stamp)


DOCTOR PLUS
1. Target Group : Medical practitioners of any discipline, promoters of
hospitals, nursing homes, pathological clinics,
polyclinics, X-ray labs, etc.
2 Eligibility : ¾ Individuals, partnerships, corporates, trusts with
powers to borrow
¾ Promoters should be registered practitioners and
should possess minimum qualification to practice in a
discipline such as MBBS/ BDS/ BAMS/ GAMS/ BHMS
3 Purpose : ¾ For purchase of equipment
¾ For setting up clinic, nursing home, path. Lab,
drug store, ambulances, computers, vehicles, etc.
¾ Expansion/ renovation of existing premises
4 Type of facilities : ¾ Medium Term Loan
¾ Cash Credit
5 Quantum of Finance : Maximum of Rs.5 crores of which a sub ceiling for
working capital limits at
• 10% of total loan amount for upto Rs.1 crore
• 5% % of total loan amount for above Rs.1 crore
minimum Rs.10lacs
Minimum DSCR 1:1.5
6 Margin : Upto Rs. 5lacs : 10%
Above Rs.5 lacs : 15% (can be reduced by 5% one
authority higher than the sanctioning authority)
7 Rate of Interest : Based on credit scoring model for loans upto Rs.25 lacs
Based on CRA rating for loans beyond Rs.25 lacs.
8 Security: : Hypothecation of assets financed by the Bank
- Primary For Allopathic doctors
– Upto Rs.15 lacs - Nil & Personal / third party guarantee
- Collateral
of at least twice the loan amount
- Above Rs.15lacs-Tangible security of at least 25% &
Personal guarantee of promoters.
For others – ayurvedic, unani, homeo-,etc.
Upto Rs.10lacs - Nil & Personal / third party guarantee
of at least twice the loan amount
Above Rs.10lacs-Tangible security of at least 25% &
Personal guarantee of promoters
9 Processing fees 0.5% of loan amount – minimum Rs.500/- & maximum
Rs.50,000/-
10 Repayment Maximum – upto 7 years - Max. moratorium – 12 months
11 Documentation : As per SME documentation
12 Special features : ¾ Eligibility as per credit scoring model –
Minimum score – 50% for limits upto Rs.25 lacs
For above Rs.25 lacs, CRA model is applicable
¾ Disbursements can be made in instalments over a
period of 24 months
¾ Half yearly inspection is stipulated

Back to
Index
CREDIT SCORING MODEL ( For loans upto Rs.25 lacs)

Name of the doctor/ company / firm -----------------------------------------------------------------


---
Name of the Chief promoter------------------------------------------------------------------------
--------

(i) Personal details of chief promoter:

S.No. Parameter Criteria Marks Max. Marks


Marks Scored
1. Owning a house Own 3 3

Owning a house with mortgage 2

Not owning 0

2. Academic qualification Super specialist 5 5

PG / addl. Qualification 4

Graduate 3

3. Field of practice Allopathy 5 5

Homeopathy 4

Ayurveda 3

Others (Unani etc.) 2

4. Experience / Practice > 10years 6 6

5 – 10years 4

3 – 5 years 3

< 3 years 2

5. Spouse details Medical practitioner 2 2

Employed 1

Not employed 0

6. Income tax Assessed 2 2


Not assessed 0

7. Life Insurance policy Yes 2 2


No 0
Total 25
ii) Business Scoring:
S.No. Parameter Criteria Marks Max. Marks
Marks scored
1. Premises Owned / leased for >5 3 3
yrs
Owned but mortgaged 2
Rented 1

2. Operating profit Continuous for > 3 yrs 5 5


(pre – tax) For 2 yrs 3
One for last yr 2

3. Income in rising Last 3 years 5 5


trend
Last 2 years 3
Last year 1
4. TOL /TNW (quasi- <=2 4 4
equi
ty to be added to >2 & <=3 3
TNW
& reduced from >3& <= 4 2
TOL)
>4 & <=5 1

5. Repayment period Upto 5 years 5


3 – 5 years 4
5 – 10 years 2

6. DSCR >=2 5 5
>=1.5 & <2 4
>=1 & <1.5 2
<1 0

7. Value of collateral >=75% 8 8


security of property >=50% & <75% 6
In the case of cash, >=25% to < 50% 4
TDR, RD, Relief <25% 2
Bonds, NSCs, NIL 0
multiply by 2 and
add to the collateral
value
TOTAL 35
Loyalty:
S.No. Parameter Criteria Marks Max. Marks
marks scored
8 Deposits More than 5 years 5 10
Advances 3 – 5 years 3
dealing with 1 – 3 years 2
SBI / SB Upto one year 1
cards
HLs / PPF/TDR Rs. 5 5
Bonus points lacs 4
for SBI > one deposit/ advance 3
customers prdct
Availing any one product
Total 10

Interest rate matrix & financial decision for loans upto Rs.25 lacs

Score Interest Rate

65 & above 2.00% below SBAR

55 - 64 1.50% below SBAR

45 – 54 1.00% below SBAR

35 – 44 0.50% below SBAR

Below No finance

*************************************************************
APPLICATION FOR DOCTOR (+) PLUS
Personal Details

1. Name of the Unit

2. Constitution Individual / Partnership/ Company

3. Address: Business

Telephone No. & Mobile Number

Address; Residential

Telephone / Mobile No. e-mail

4. Registration No. of Medical


Practitioner

5. Owning a house Own


Own (not mortgaged)
Not owning

6. Academic Qualifications
(medical fields) Graduate (MBBS/BMS/Other)
PG
Specialisation

7. Spouse Detail Doctor


Employed
Not Working

8. Income Assessed Under IT Yes


No

9. Taken Life Insurance Policy Yes


No
10. Whether belongs to SC / ST
Minority Community
Male
Female
Ex-Service man

11. Banking with SBI


Details of Deposit A/c
(Including SBI Card)
Since

Loan A/c
Since

Loans Repaid

12. Description of activity

13. Experience in Medical Practice Over 10 years


5 – 10 yrs
3 – 5 years
Less than 3 - 5 yrs

14. Premises where practice is done Owned


Leased > 5 yrs (but mortgaged)
Rented

15. Project Details

Cost of Project Amount (Rs.) Means of Finance Amount (Rs.)


Fixed Assets
Working Capital
Current Assets Term Loan
Others

16. Track Record


Year 1 Year 2 Year 3 Year 4 Year 5
Income
Operating Profit
(Pretax)
17.
TOL
TNW
(Quasi equity to be
added to TNW and
reduced from TOL)
DSCR
18. Amount of Loan required

19. Repayment Period Upto 3 yrs


3-5 yrs
5-10 yrs

20. Collateral Value of Property (TDR Rs.


or cash equivalent is offered as
security viz. RBI Relief Bond, NSC
etc. multiply cash equivalent, by 2
and add to the collateral (value)

% of loan %

21. I / We Certify (i) all information furnished by me / us is true, correct and complete;
(ii) I / We have no borrowing arrangement for the unit with any Bank as except
indicated in the application; (iii) there are no over dues / statutory dues against me /
us; (iv) No legal action has been taken against me / us (v) I / We shall furnish all other
information all over information that may be required by Bank a connection with my
application; (vi) the information may also be exchanged by you with any agency you
may deem fit (vii) You, representatives of any other agency as authorized by you may
at any time inspect verify my / our assets, books of account etc. in our business
premise as given above (viii) You may take appropriate safeguards / action for
recovery of Banks dues including publication of defaulters name in web site /
submission to RBI, (ix) / We further agree that my / our loan shall be governed by the
rules of State Bank of India which may be in force from time to time.

Place : __________________

Date : __________________ Signature of Borrower (S)

Documentary proof in the form of originals with self attested copies has to be produced
for verification. Originals to be returned and attested copies filed along with application.
Data to be attested and furnished only in respect of key promoter.
SBI-SIEMENS MEDICAL EQUIPMENT PLUS

1. Target Group : Prospective buyers will be identified by Siemens who will


refer the buyers to the branches of SBI. These will be
drawn from doctors in private practice, nursing homes,
hospitals, diagnostic centres preferably those who are
banking with us
2 Eligibility : Individuals / partnerships / corporates / trusts
Commercial viability will have to be established before
sanctioning the loan. Due diligence should be done by
the Branch manager before sanction of the loan.
3 Purpose : To purchase medical equipment

4 Type of facilities : Term Loan

5 Quantum of Finance : The cost of equipment on offer by Siemens ranges


between Rs.10 lacs to Rs.10 crs.
Loans for non medical practitioners for purchase of
equipment costing upto Rs.20lacs will be treated as SBF
advance.
Loans to medical practitioners whose borrowings do not
exceed Rs.10 lacs in urban and metro centres and
Rs.15 lacs in rural and semi-urban centres are also to be
treated as SBF advances.
Under this tie up arrangement, all loans upto Rs.25 lacs
will be covered under the Doctor Plus scheme.
Loans over Rs.25lacs will be considered under C&I
segment and will be appraised as per the norms
applicable to C&I advances.
Provision for contingencies to the extent of 5% may also
be considered on case to case basis.
DSCR 1.75 Debt Equity 3:1
6 Margin : 20%

7 Rate of Interest : As per Doctor Plus scheme

8 Security: :
- Primary Hypothecation of assets financed by the Bank
- Collateral
For loans upto Rs.10 lacs – NIL
For loans over Rs.10 lacs – Tangible security for at least
50% of the loan amount
9 Processing fees Waived
10 Repayment 5 to 8 years including a moratorium period not exceeding
1 year

11 Documentation : As applicable to term loans in SBF / C&I segment


12 Special features : Equipment covered Price range (Rs. in lacs)

CT Scan 100 - 400


MRI Scan 200 – 650
Cathlab 220 – 330
Linear Accelerator 400 - 700
B&W ultra-sound 60 - 100
Colour Doppler 150 – 650
X – ray 20 – 350
Ventilator 80 – 130
Ultrasound scanner 15 - 40
Locations to be covered:
New Delhi, Dehradun, Chandigarh, Patiala, Ludhiana,
Kanpur, Lucknow, Jaipur, Jodhpur, Chennai, Bangalore,
Hubli, Hyderabad, Visakhapatnam, Kakinada, Kochi,
Trichy , Thrissur, Thiruvananthapuram, Coimbatore,
Kolkatta, Patna, Bhubhaneswar, Ranchi, Mumbai, Goa,
Nagpur, Pune, Indore, Ahmedabad, Vadodara
Any other location can be added if required.
13 Methodology and Siemens will identify and furnish application to SBI. SBI
Operation of the shall process the loan application and if found
account acceptable, the Bank will sanction the loan within 15
days and convey the sanction to the borrower and
Siemens Thereafter, the borrower will have to complete
documentation and margin requirements Siemens will
then dispatch the equipment directly to the buyer/
borrower and forward proof of dispatch along with
proforma invoice to the branch. The Bank will have to
pay the amount directly to Siemens by means of a draft
or Bankers Cheque within 3 days of receipt of the proof
of dispatch.

Product highlights:
Our Bank is the largest financier for medical practitioners and in order to maintain and
further enhance our product profile to this segment of borrowers, the Bank has entered
into a tie up arrangement with M/s. Siemens Ltd. which is in itself a globally recognized
manufacturer of hitec medical equipment, for financing purchase of their products by
medical practitioners, nursing homes, clinics, diagnostic centres, etc. Siemens will
identify the prospective buyers and refer them to the Bank who will consider the
proposals on merits and if found acceptable, will sanction the required term loan .the
proceeds of the term loan , together with the margin money component will be directly
forwarded to Siemens after the receipt of the equipment by the borrower within 3 days.
Loans upto Rs.25lacswill be considered under Doctor plus scheme and for amounts
above that C&I norms will apply.
Back to
Index
SBI-DENTAL EQUIPMENT PLUS
TIE UP with Confident Dental Equipment Ltd.

1. Target Group : Qualified dentists with a minimum of BDS degree and


qualified to practice as a medical practitioner

2 Eligibility : Individuals / partnerships / corporates / trusts


Commercial viability will have to be established before
sanctioning the loan. Due diligence should be done by
the Branch Manager before sanction of the loan.

3 Purpose : To purchase medical equipment required for dentistry

4 Type of facilities : Term Loan

5 Quantum of Finance : Rs.10 lacs maximum

DSCR 1.5
6 Margin :
Upto Rs.25000/- nil
Upto Rs.5lacs 10%
Over Rs.5 lacs 20%

7 Rate of Interest : Repayable Repayable


below 3 yrs beyond 3 yrs
Upto Rs.50000/- 1.75%below 1.25%below
SBAR SBAR
Above Rs.50000/- 1.25%below 0.75%below
upto 2 lacs SBAR SBAR

Above Rs.2 lacs 1%below 0.50% below


upto Rs.5 lacs SBAR SBAR

Above Rs.5 lacs SBAR 0.50% above


and upto Rs.10 SBAR
lacs
8 Security: :
- Primary Hypothecation of assets financed by the Bank
- Collateral
NIL
9 Processing fees Waived
10 Repayment 5 to 10 years including the moratorium period not
exceeding 1year

11 Documentation : As per simplified SME Documentation


12 Special features : ¾ The loan will be based on a simplified scoring model
with 60% as the minimum score for qualifying for the
loan
¾ A discount of 5 % is being offered by the Supplier
¾ An extended warranty period of 18 months is also
made available under this package
¾ Inspection can be at half yearly intervals
13 Methodology and The Company will identify and furnish application to SBI.
Operation of the SBI shall process the loan application and if found
account acceptable, the Bank will sanction the loan within 15
days and convey the sanction to the borrower and
equipment supplier

Product highlights:

Our Bank is the largest financier for medical practitioners and in order to maintain and
further enhance our product profile to this segment of borrowers, the Bank has entered
into a tie up arrangement with M/s Confident Dental Equipment Ltd. for financing
purchase of their products by medical practitioners, nursing homes, clinics, diagnostic
centres, etc. The Company will identify the prospective buyers and refer them to the
Bank who will consider the proposals on merits and if found acceptable, will sanction
the required term loan .the proceeds of the term loan, together with the margin money
component will be directly forwarded to the Company after the receipt of the equipment
by the borrower within 3 days.

Marketing tips:

Ä M/s Confident Dental Equipment Ltd. will identify the prospective buyer /
borrower and it is expected that we process the applications within 15 days
of receipt.

Back to
Index
TIE – UP WITH APOLLO HEALTH AND LIFESTYLE LTD.

1. Target Group : Proposed franchisees of Apollo Health and Lifestyle Ltd.


projected to be around 200 clinics to be set up across
the country in the next 12 to 18 months
2 Eligibility : ™ A special risk model has been devised for
assessing the eligibility of a proposed clinic based
on which the proposals will be taken up for
financing.
3 Purpose : To finance franchisees of Apollo Health and Lifestyle Ltd.
for setting up Apollo clinics as per the integrated model
to offer Specialist consultation, Diagnostics, Preventive
health checks, a 24 hour pharmacy, etc., all under one
roof.
4 Type of facilities : Term Loan and Cash Credit

5 Quantum of Finance : No cap

6 Margin : 33.33% for term Loan and 25% for Cash Credit

7 Rate of Interest : 1.25% below SBAR floating with a minimum of 9% p.a.


for both TL and CC. CGM of Circle has the discretion to
reduce the interest rate to 1.25% below SBAR with a
minimum of 8.50% p.a. with monthly rests for TL
repayable in 7 years.

8 Security: : Hypothecation of stocks and assets of the clinic


- Primary
- Collateral i)Collateral for a minimum of 50% of the Term Loan
ii)Personal guarantees of promoters

9 Processing fees 0.25% of the TL and Rs.250/- per lac for CC limit

10 Repayment Maximum of 20 quarterly instalments excluding a


moratorium of 12 months from the date of first
disbursement

11 Documentation : As per revised C&I documentation

12 Special features : ¾ Bank has entered into an MOU with Apollo Health
and Lifestyle(AH&LL) to finance their franchisees for
setting up integrated clinics. AH&LL will follow
stringent due diligence procedure based on the
following parameters ;-
™ Reputation of the key promoters
™ Personal wealth and contribution as equity
™ Business acumen of the promoter
™ Experience of the promoter in healthcare
™ Population per clinic in the town
™ Location of the clinic
Proposals have to be subjected to risk analysis on the
prescribed matrix and categorized into one of three
categories namely, Extremely Satisfactory(A),
Satisfactory(B) and Not satisfactory(C).A and B category
proposals can be taken up for detailed appraisal as per
CRA model on usual lines.
Inspection to be undertaken at monthly intervals
Insurance to be obtained for all assets financed by the
Bank for full value and for all risks

Product Highlights:

This product is a unique package for increasing our exposure to the healthcare
sector in a big way. The MOU with AH&LL envisages that the Apollo franchisees
are chosen by AH&LL after stringent due diligence which will be shared with the
Bank. Thereafter, the proposal will have to be vetted for Risk assessment on the
specially designed format and only if found acceptable, the detailed appraisal will
have to be taken up. Both TL and CC can be sanctioned as per need and if the
CRA rating is at least SB4/SBTL4.

Marketing Tips:
While the proposed Apollo clinics will provide ample scope for finance, the scope
for cross-selling of our other products such as Import LCs, Insurance for
equipment through our tie-ups with GIC, Medi–plus schemes for eligible patients,
etc.
FAQs

Can we entertain proposals directly without routing through AH&LL?

It is advisable to have the proposal vetted and recommended by the Apollo to enable
them to do due diligence regarding the capability of the promoters to start such a clinic
both on financial and technical aspects

Can we entertain proposals with the financials of the project being either for a lower
value or higher value?
Yes. The project will have to be checked for financial viability to ensure prompt
repayment of instalments and interest.

Back to
Index
State Bank of India
______________________ branch
Application cum interview form for financing of Apollo Clinics
Name of the Unit

Address of the Unit


Phone No.
Fax No.
Email / website Premises Owned / Rented
Address of reg. Office
In case of Corporate Premises Owned / Rented
Address of the Unit
Phone No.
Fax No.
Email / website Premises Owned / Rented
Other services being provided
Year of commencement of business
Experience in the line of activity
Constitution
Details of reconstitution in the past three
years

Details of Proprietor / Partners / Directors


Name & Age PAN Residential Ph No / Net Worth *
Qualification Address Mobile

* Opinion report on the bank’s prescribed format should be prepared.

Details of existing banking arrangements :


Name of the Facility Limit Outstanding Banking since
Bank / branch

Details of Associate / Sister / Identical Firms :

Name of the Name(s) of Banking with Limit Outstandings


unit pro/partners

Details of registration under Shops & Establishment


Act / Sales tax Act / Any other Act.

Position regarding Statutory assessment under IT /


Sales tax / Any other Year upto which assessment
completed.

Credit facilities required

Fund based Limit required Non fund based Limit required


Cash Credit (incl. of Letters of Credit if
Bill / Chq any,
purchases)
Term Loan Bank guarantees, if
any
Total Total
For term loans – Details of assets to be acquired (pl. enclose detailed list if necessary)
Description Details of the Cost Time schedule for
supplier completion

Need for the proposed expenditure

Cost Amount Means Amount


Land & Building Own funds
Equipment Other loans
(proforma invoice to (specify source)
be enclosed)
Other assets Bank loan
Total Total
Any other information : (Including specific reasons for Letter of Credit / Bank Guarantee
/ etc…)
Performance Parameters Post / projects
Past three Projections
years
31.3 31.3 31.3 31.3 31.3
Sales /
income
Net Profit
Depreciation
Cash
Accrual
Tangible Net
Worth
TOL / TNW
DSCR

For term loans, please enclose projected profitability statements covering the period of
repayment
Details of Security offered
Primary
Collateral
(i) Immovable property
Description of Name of the Owner Value of the Basis of Valuation
property property

(ii) Liquid securities


Description Name of the Face Value When Acquired Present value
owner

Details of Guarantor Where applicable


Name of the Age Qualification Net worth Banking with
Guarantor &
address

I/We declare that the information given in the application form are true, correct and
complete and that they shall form the basis of any kind of facility State Bank of India
may decide to extend to me / us. I / we shall furnish all other information that may be
required by bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate safe
guards / action for recovery of bank dues including publication of defaulters names in
website / submission to RBI. I/We confirm that I/we have no borrowing arrangements for
the unit with any bank except those indicated in the application. I / We confirm that I /
We are not defaulters of any Bank / any financial Institution. I / We also confirm that
there are no overdues / statutory dues owed by me / us and that I / We have / had no
insolvency proceedings against me / us nor have I / we ever been adjudicated insolvent.
I / We undertake to abide by the Rules and Regulations of State Bank of India in respect
of the facilities being extended to me / us.

Signature of Borrower

Date : Name of the Interviewing Official


Place :
State Bank of India
______________________ branch
Application cum interview form for financing of Apollo Clinics

Name of the Unit


Address of the Unit
Phone No.
Fax No.
Email / website Premises Owned / Rented
Address of reg. Office
In case of Corporate Premises Owned / Rented
Address of the Unit
Phone No.
Fax No.
Email / website Premises Owned / Rented
Other services being provided
Year of commencement of business
Experience in the line of activity
Constitution
Details of reconstitution in the past three
years

Details of Proprietor / Partners / Directors


Name & Age PAN Residential Ph No / Net Worth *
Qualification Address Mobile

* Opinion report on the bank’s prescribed format should be prepared.


Details of existing banking arrangements :

Name of the Facility Limit Outstanding Banking since


Bank / branch

Details of Associate / Sister / Identical Firms :

Name of the Name(s) of Banking with Limit Outstandings


unit pro/partners

Details of registration under Shops & Establishment


Act / Sales tax Act / Any other Act.

Position regarding Statutory assessment under IT /


Sales tax / Any other Year upto which assessment
completed.

Credit facilities required

Fund based Limit required Non fund based Limit required


Cash Credit (incl. of Letters of Credit if
Bill / Chq any,
purchases)
Term Loan Bank guarantees, if
any
Total Total
For term loans – Details of assets to be acquired (pl. enclose detailed list if necessary)

Description Details of the Cost Time schedule for


supplier completion

Need for the proposed expenditure

Cost Amount Means Amount


Land & Building Own funds
Equipment Other loans
(proforma invoice to (specify source)
be enclosed)
Other assets Bank loan
Total Total

Any other information : (Including specific reasons for Letter of Credit / Bank Guarantee
/ etc…)
Performance Parameters Post / projects
Past three Projections
years
31.3 31.3 31.3 31.3 31.3
Sales /
income
Net Profit
Depreciation
Cash
Accrual
Tangible Net
Worth
TOL / TNW
DSCR

For term loans, please enclose projected profitability statements covering the period of
repayment

Details of Security offered

Primary
Collateral

(i) Immovable property

Description of Name of the Owner Value of the Basis of Valuation


property property

(ii) Liquid securities

Description Name of the Face Value When Acquired Present value


owner
Details of Guarantor Where applicable

Name of the Age Qualification Net worth Banking with


Guarantor &
address

I/We declare that the information given in the application form are true, correct and
complete and that they shall form the basis of any kind of facility State Bank of India
may decide to extend to me / us. I / we shall furnish all other information that may be
required by bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate safe
guards / action for recovery of bank dues including publication of defaulters names in
website / submission to RBI. I/We confirm that I/we have no borrowing arrangements for
the unit with any bank except those indicated in the application. I / We confirm that I /
We are not defaulters of any Bank / any financial Institution. I / We also confirm that
there are no overdues / statutory dues owed by me / us and that I / We have / had no
insolvency proceedings against me / us nor have I / we ever been adjudicated insolvent.
I / We undertake to abide by the Rules and Regulations of State Bank of India in respect
of the facilities being extended to me / us.

Signature of Borrower

Date : Name of the Interviewing Official


Place :
State Bank of India
______________________ branch
Application cum interview form for financing of Apollo Clinics

Name of the Unit


Address of the Unit
Phone No.
Fax No.
Email / website Premises Owned / Rented
Address of reg. Office
In case of Corporate Premises Owned / Rented
Address of the Unit
Phone No.
Fax No.
Email / website Premises Owned / Rented
Other services being provided
Year of commencement of business
Experience in the line of activity
Constitution
Details of reconstitution in the past three
years

Details of Proprietor / Partners / Directors


Name & Age PAN Residential Ph No / Net Worth *
Qualification Address Mobile

* Opinion report on the bank’s prescribed format should be prepared.


Details of existing banking arrangements :

Name of the Facility Limit Outstanding Banking since


Bank / branch

Details of Associate / Sister / Identical Firms :

Name of the Name(s) of Banking with Limit Outstandings


unit pro/partners

Details of registration under Shops & Establishment


Act / Sales tax Act / Any other Act.

Position regarding Statutory assessment under IT /


Sales tax / Any other Year upto which assessment
completed.

Credit facilities required


Fund based Limit required Non fund based Limit required
Cash Credit (incl. of Letters of Credit if
Bill / Chq any,
purchases)
Term Loan Bank guarantees, if
any
Total Total
For term loans – Details of assets to be acquired (pl. enclose detailed list if necessary)
Description Details of the Cost Time schedule for
supplier completion

Need for the proposed expenditure

Cost Amount Means Amount


Land & Building Own funds
Equipment Other loans
(proforma invoice to (specify source)
be enclosed)
Other assets Bank loan
Total Total

Any other information : (Including specific reasons for Letter of Credit / Bank Guarantee
/ etc…)
Performance Parameters Post / projects
Past three Projections
years
31.3 31.3 31.3 31.3 31.3
Sales /
income
Net Profit
Depreciation
Cash
Accrual
Tangible Net
Worth
TOL / TNW
DSCR

For term loans, please enclose projected profitability statements covering the period of
repayment
Details of Security offered
Primary
Collateral
(i) Immovable property
Description of Name of the Owner Value of the Basis of Valuation
property property

(ii) Liquid securities


Description Name of the Face Value When Acquired Present value
owner

Details of Guarantor Where applicable


Name of the Age Qualification Net worth Banking with
Guarantor &
address

I/We declare that the information given in the application form are true, correct and
complete and that they shall form the basis of any kind of facility State Bank of India
may decide to extend to me / us. I / we shall furnish all other information that may be
required by bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate safe
guards / action for recovery of bank dues including publication of defaulters names in
website / submission to RBI. I/We confirm that I/we have no borrowing arrangements for
the unit with any bank except those indicated in the application. I / We confirm that I /
We are not defaulters of any Bank / any financial Institution. I / We also confirm that
there are no overdues / statutory dues owed by me / us and that I / We have / had no
insolvency proceedings against me / us nor have I / we ever been adjudicated insolvent.
I / We undertake to abide by the Rules and Regulations of State Bank of India in respect
of the facilities being extended to me / us.

Signature of Borrower

Date : Name of the Interviewing Official


Place :
APPRAISAL FORMAT FOR FINANCING FRANCHISEES OF APOLLO CLINICS

Proposals for financing of franchisees of Apollo clinics need to be appraised based on


the Risk Parameters that are given below. The methodology of calculation of the score
in the below mentioned risk matrix is :

o Assign any one of the three codes (A, B & C) to all the considerations as
above.
A = Extremely Satisfactory.
B = Satisfactory &
C = Not Satisfactory
o The marks assigned to these codes are A = 10, B = 6 & C = 3
o Calculate the total score of the risk matrix by multiplying weightage of
each consideration with the marks of these codes (e.g. if a proposal gets
B in “location of the clinic” then, 10%* 6 =0.6 mark would be given to the
first consideration and accordingly the sum or all consideration will be
calculated for the proposal).

1 2 3 4 5
Parameters Considerations Weightage Code Score
(A, B, C) 3* 4
Location Location of the Clinic 10%
(30%) Population / No. of 20%
polyclinics in the city or
region
Owner Reputation of the owner 25%
(50%) Personal wealth of the 10%
owner
Previous business 15%
performance
Projections Cash flow estimates 20%
(20%)
Total

Based on the score achieved by every proposal, the collateral security is to be decided.
Maximum score that can be achieved by a proposal is 10 and minimum score is 3. The
calculation of collateral security to be made as under.
Score received by the proposal Collateral security to be considered
8 or more than 8 50% of the term loan amount
6 or more but less than 8% 75% of the term loan amount
4 or more but less than 6 100% of the term loan amount
Less than 4 Term Loan not to be considered

The minimum collateral security stipulated is 50% of the Term Loan.

6. To set up a typical Clinic as envisaged by Apollo, the franchisee would be required to


lease / own premises of around 3200 sq. ft. The total estimated cost of the project would
be in the region of Rs. 170 lacs. The debt equity ratio desired is 1:1.

Project Cost of around Rs. 1.72 crore consisting of :

Lease Deposit 4.80


Medical Equipment 70.60
Interiors, Civil Modification, Furniture, AC, Electrical 45.00
Information technology (Hardware and Software) 12.00
Preliminary and Pre-operative expense 13.00
Working Capital Margin 3.00
Contingency Funds and Others 3.50
License Fees for AHLL (+10.2% service Tax) 20.00
Total – 171.90

The revenue generation from Consultation, Health Checkups, Diagnostics Pharmacy


and other facilities are expected to be Rs.140 lacs in the first years of operation. The
turnover is expected to double in the 4th year. The cash break even is likely to take
around 5/6 months while the expected payback period is 4-4.5 years with a post tax IRR
of up to 25%.

7. There is an understanding with Apollo that all the applications will be processed
within 10 days from the date of receipt of application and complete documents.
Branches should ensure sanctity of the commitment made by the Corporate Centre with
Apollo.
SCHOOL PLUS

25. Target Group : Ä Primary and Higher secondary schools


Ä Graduation, Under-Graduation and Post
Graduation colleges
Professional colleges and coaching institutes are
excluded from this product and should be assessed on
usual CRA model

26. Eligibility : ¾ Government Aided schools / colleges


¾ Private schools /colleges
¾ Schools/ colleges run by trusts of good standing
¾ Technical institutes recognized by AICTE / NBA /MCI
Institutions with a credit score of less than 4 are not
eligible

27. Purpose : ¾ Purchase of land for building / play ground


¾ Construction of school building / auditorium
¾ Repair / renovation of existing building
¾ Purchase of computer and related equipment
¾ Purchase of books / manuals / software and other
training material
¾ Purchase of laboratory equipment
¾ Purchase of furniture / fixtures
¾ Purchase of sports equipment
¾ Equipment for mid day meal scheme
¾ Purchase of buses for student transportation

28. Type of facilities : Term Loan

29. Quantum of Finance : No cap.

30. Margin : 15% of the project cost


31. Rate of Interest : Ranging from 0.75% below SBAR (9.50%) to 1% above
SBAR (11.25%) based on credit score

32. Security: : ¾ Assets purchased out of Bank finance


- Primary ¾ Personal guarantee of the Promoter / Trustees /
any other persons acceptable to the Bank and
- Collateral
¾ EM of land and building and other immovable
assets of the school or guarantor for 20% of the
loan amount for loans of Rs.2 lacs to Rs.10lacs
and EM of other immovable assets of the institute
/ guarantor for loans above Rs.10lacs.for 20% of
the loan amount
¾ For Loans given under Bank’s arrangement
with Intel and NIIT as service providers for
schools.

- Hypothecation of charge over assets


acquired out of Bank finance
- Personal Guarantee of the key Manager /
Trustees / promoters / any other persons /
body acceptable to the bank.
- PDCs to cover complete bank exposure

33. Processing fees As applicable to C&I segment

34. Repayment : Upto Rs. 2 lacs Maximum of 36 EMI


Rs.2 lacs to Rs. 5 lacs Maximum of 60 EMI
Rs.5 lacs and above Maximum of 84 EMI
Repayment to be fixed as per schedule of receipt of fees.
DSCR not to exceed 2

35. Documentation : ¾ TL document for SME units


¾ Resolution of the trust
¾ Bye laws of the trust authorizing the trust to
borrow from bank
¾ Guarantee Agreement of the Chief promoter(s) /
Trustees/ Any other acceptable persons

36. Special features : ¾ Fixed rate Term Loan only


¾ An exclusive scoring model has been devised to
assess the credit risk and fix interest rates
accordingly
¾ Disbursal will be made in stages for construction
¾ Direct payment to supplier for purchase of assets
¾ No reimbursement is permissible
¾ More than one loan can be granted subject to
repayment capacity as stipulated
The scoring model and the application form are enclosed
in the annexure section

Product Highlights:

Educational institutions are required to incur heavy capital expenditure for providing
quality education to the students in comfortable and safe surroundings. As a measure to
provide timely credit to such institutions subject to the repaying capacity through
adequate income being available, this product has been designed by the Bank for
delivery through Scale III and above incumbency branches.. The repayment schedule is
also made flexible to avoid straining the liquidity of the institution.

Marketing Tips:
¾ Schools which have a large student population but housed in inadequate
or unsafe buildings of poor quality can be approached for availing this
product.
¾ End of the school year is an appropriate time to market this product as the
schools tend to take up renovation / expansion works during vacation time.

¾ Create data base of all schools and colleges in the locality/centre.

¾ Display product features in various vantage points in the vicinity of


schools/colleges.

¾ Marketing of this product should be taken up as a bouquet of related


products and services such as Teacher Plus, salary accounts, other
personal segment products such as car loans ,two wheeler loans, housing
loans, etc., and services such as collection of fees, investment advisory
services, etc.

FAQs

¾ Can this product be extended to franchisees of computer training institutes?

No but such institutes can be considered under the regular CRA model or under
the Mortgage Loan

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State Bank of India
______________________ branch
Application cum interview form for financing Schools

Name of the School / Institute


Address of the Unit
Phone No.
Fax No.
Email / website Premises Owned / Rented
Address of reg. Office
In case of Corporate Premises Owned / Rented
Address of the Unit
Phone No.
Fax No.
Email / website Premises Owned / Rented
Other services being provided
Year of commencement of business
Experience in the line of activity
Constitution
Details of reconstitution in the past three
years

Details of Proprietor / Partners / Directors


Name & Age PAN Residential Ph No / Net Worth *
Qualification Address Mobile

* Opinion report on the bank’s prescribed format should be prepared.


Details of existing banking arrangements :

Name of the Facility Limit Outstanding Banking since


Bank / branch

Details of Associate / Sister / Identical Firms :

Name of the Name(s) of Banking with Limit Outstandings


unit pro/partners

Details of registration under Shops & Establishment


Act / Sales tax Act / Any other Act.

Position regarding Statutory assessment under IT /


Sales tax / Any other Year upto which assessment
completed.

Credit facilities required

Fund based Limit required Non fund based Limit required


Cash Credit (incl. of Letters of Credit if
Bill / Chq any,
purchases)
Term Loan Bank guarantees, if
any
Total Total
For term loans – Details of assets to be acquired (pl. enclose detailed list if necessary)

Description Details of the Cost Time schedule for


supplier completion

Need for the proposed expenditure

Cost Amount Means Amount


Land & Building Own funds
Equipment Other loans
(proforma invoice to (specify source)
be enclosed)
Other assets Bank loan
Total Total

Any other information : (Including specific reasons for Letter of Credit / Bank Guarantee
/ etc…)

Business Information

Marketing arrangements
Level of competition
Major competitors
Competitive advantage of the unit

Fees details
Fee charges per month
No. of Students
Other income
Average Receivables
Level
Performance Parameters Post / projects
Past three Projections
years
31.3 31.3 31.3 31.3 31.3
Sales /
income
Net Profit
Depreciation
Cash
Accrual
Tangible Net
Worth
TOL / TNW
DSCR

For term loans, please enclose projected profitability statements covering the period of
repayment

Details of Security offered

Primary
Collateral

(i) Immovable property

Description of Name of the Owner Value of the Basis of Valuation


property property

(ii) Liquid securities

Description Name of the Face Value When Acquired Present value


owner
Details of Guarantor Where applicable

Name of the Age Qualification Net worth Banking with


Guarantor &
address

I/We declare that the information given in the application form are true, correct and
complete and that they shall form the basis of any kind of facility State Bank of India
may decide to extend to me / us. I / we shall furnish all other information that may be
required by bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate safe
guards / action for recovery of bank dues including publication of defaulters names in
website / submission to RBI. I/We confirm that I/we have no borrowing arrangements for
the unit with any bank except those indicated in the application. I / We confirm that I /
We are not defaulters of any Bank / any financial Institution. I / We also confirm that
there are no overdues / statutory dues owed by me / us and that I / We have / had no
insolvency proceedings against me / us nor have I / we ever been adjudicated insolvent.
I / We undertake to abide by the Rules and Regulations of State Bank of India in respect
of the facilities being extended to me / us.

Signature of Borrower

Date : Name of the Interviewing Official


Place :

List of documents to be attached

1. Partnership deed in original (to be returned) and a copy thereof


2. Memorandum and Articles of Association with certificate of Incorporation in
original (to b returned) and copies thereof.
3. Copies of relevant license, documents pertaining to ownership / tenancy /
lease agreement in respect of premises where activity will be carried out/
service or trade related agreements etc.,
4. Latest copy of income – tax return / sales tax Assessment order etc.
5. Statement of account from the existing banker for last 6 months.
6. Copy of the Title deeds relating to collateral security being offered.
7. Photocopies of PAN card of partners / Directors wherever available.
8. Copies of balance sheets for the past three years (audited wherever
applicable0
9. Statements of personal assets and liabilities of Proprietor / Partners /
Directors / Guarantors.
10. Photographs of Proprietor / partners / Directors / Guarantors.
APPRAISAL FOR FINANCING UNDER SCHOOL PLUS

For already existing schools :

1 2 3 4 5
Parameters Factors Weightage Code Score
(A, B, C) 3* 4
Past record of the Average % of passing 20%
students (20%) children (all classes)

Faculty (20%) Quality of teachers 10%


Teachers – students ratio 10%
Experience of No. of years in the industry 20%
promoters / trusts
(20%)
Security Value (20%) Primary + Collateral 20%
security
Existing facilities Science / Computer lab. 10%
(10%) Library, Arts & Crafts,
Playground etc.
Brand name (10%) Reputation on the School / 10%
Chain

Criteria for scores to be given to the factors :

Average % of passing children (all classes)

• 90% and above – A


• 70% - 90% - B
• Less than 70% - C

Quality of teachers

• Post Graduate teachers i.e. M.Ed., M.Phil, Doctorate etc - A


• B.Ed teachers --------------------------------------- - B
• Untrained teachers ---------------------------------------------- - C

Faculty / Student ratio

• More than 30% - A


• 2 – 3% - B
• Less than 2% - C
Experience of promoter / trusts

• More than 5 years - A


• Less than 5 years - B
• No experience - C

Security value (Primary + Collateral)

• More than 200% of Bank’s exposure - A


• More than 150% of Bank’s exposure - B
• More than 125% of Bank’s exposure - C

Existing facilities like Science or Computer Laboratories, Libraries, Facilities for teaching
crafts, arts, music, dance etc and playgrounds.

• Three of more of the above facilities - A


• Two facilities -------------------------- - B
• One or no such facility --------------- - C

• Reputed Chain of Schools / Very reputed name (Single School) - A


• Medium reputed school - B
• Unknown Brand or first school - C

o Assign any one of the three codes (A, B & C) to all the considerations as
above.
o The marks assigned to these codes are A = 10, B = 6 & C = 2
o Calculate the total score of the risk matrix by multiplying weightage of
each consideration with the marks of these codes (e.g. if a proposal gets
B in “past record of the students” then, 20%* 6 = 1.2 mark would be given
to the first consideration and accordingly the sum of all consideration will
be calculated for the proposal).

Maximum score that can be achieved by a proposal is 10 and minimum score is 2.


Interest rates to be changed based on the scores are as under :

Score received by the proposal Collateral security to be considered


8 or more than 8 0.75% below SBAR, presently 9.50%
6 or more but less than 8% At SBAR, presently 10.25%
4 or more but less than 6 1% above SBAR, presently 11.25%
Less than 4 Term Loan not to be considered
For New Schools :

1 2 3 4 5
Parameters Factors Weightage Code Score
(A, B, C) 3* 4
Experience No. of years in the industry 20%
promoters / trusts
(20%)
Faculty (10%) Quality of teachers 10%
Brand name (10%) Reputed Chain 10%
Expected Demand Density of school, 20%
(20%) composition of middle,
upper middle or higher
income families in the area
Facilities (10%) Science / Computer lab, 10%
Library, Arts & Crafts, Play
ground etc.
Security Value (30%) Primary + Collateral 30%
security

Criteria for scores to be given to the factors :

Quality of teachers

• Post Graduate teachers - A


• B.Ed teachers - B
• Untrained teachers - C

Experience of promoter / trust

• More than 5 years - A


• Less than 5 years - B
• No experience - C

Security value (Primary + Collatral)

• More than 200% of Bank’s exposure - A


• More than 150% of Bank’s exposure - B
• More than 125% of Bank’s exposure - C

Brand Name

• Reputed Chain of Schools / Very reputed name (Single School) - A


• Medium reputed School ------------------------------------------------- - B
• Unknown Brand of first school -------------------------------- - C
Expected Demand

• Demand certain ------------------------- - A


• Demand likely to be high ------------------- - B
• High competition, demand highly uncertain - C

Facilities

• Three of more of the above facilities - A


• Two facilities ----------------------------- - B
• One or no such facility ------------------------- - C

o Assign any one of the three codes (A, B & C) to all the considerations as
above.
o The marks assigned to these codes are A = 10, B = 6 & C = 2
o Calculated the total score of the risk matrix by multiplying weightage of
each consideration with the marks of these codes.

Maximum score that can be achieved by a proposal is 10 and minimum score is 2.


Interest rates to be changed based on the scores are as under :

Score received by the proposal Collateral security to be considered


8 or more than 8 0.75% below SBAR, presently 9.50%
6 or more but less than 8% At SBAR, presently 10.25%
4 or more but less than 6 1% above SBAR, presently 11.25%
Less than 4 Term Loan not to be considered
SEMFEX II

1. Target Group : .Ex-servicemen, widows of servicemen. disable


servicemen

Eligibility : Individual or association of not more than 6 members.

Purpose : To purchase utility vehicles, LCVs, Commander 650,


Major(CL-500) and Savari Rang and pick ups such as
single cabs and double cabs manufactured by Mahindra
& Mahindra
.
Type of facilities : Term Loan

Quantum of Finance : As per assessment. Not more than 10 vehicles should be


owned by the borrower including the vehicles to be
financed. Gross DSCR should be Minimum 1.75%

Margin : 20%

Rate of Interest : For loans below Rs.50000/-


1.75% below SBAR for TLs repayable within 3 years
1.25% for TLs repayable in 3years to 7 years.
For loans over Rs.50000/-
0.75% below SBAR for TLs repayable within 3 years
0.25% for TLs repayable in 3years and over.

Security: :
- Primary Hypothecation charge to be registered with RTA.
- Collateral
Mortgage of immovable / movable property to cover
50%of the loan amount and / or third party guarantee

Processing fees Waived

Repayment Within 3 to 7 years with a moratorium of 6 months.


Longer repayment period may be fixed based on the
gross DSCR in each case.

Documentation : As per simplified SME Documentation

Special features : Subvention amount is available per vehicle for 1 year

Methodology and M&M dealers will obtain applications and after due
Operation of the diligence will forward them to the Bank for appraisal and
account sanction if found acceptable in all respects.
Product highlights:

This scheme is for extending a soft loan to ex-servicemen to help them to augment their
income in post-retirement period by undertaking a suitable economic activity. Finance
can be extended for purchase of upto 10 transport vehicles of any make in utility and
LCV range and cabs.. This loan can be covered under tie up arrangements of the Bank
with M&M, in which case, the borrower will get the benefit of the subvention amount and
two additional free service coupons.

Marketing tips:
Ä Processing fees has been waived,
Ä the repayment is extendable upto 7years.
Ä Collateral can be only upto 50% of the loan amount.

FAQs

Ä Is there any DSCR stipulation for this product?

The minimum gross DSCR should be 1.75

Ä Should Nabard refinance be obtained?

Only for the margin money assistance portion and not for the term loan.

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CORPORATE LOAN

1. Target Group : Existing C&I and SSI customers and also non customers
subject to take over norms.

2 Eligibility : .Existing corporate and non-corporate customers in C&I


and SSI segments with SB3 or SBTL3 rating. Non–
customers can also be offered this product after
ensuring the creditworthiness and obtention of opinion
report from their bankers.

3 Purpose : Repayment of high cost debt, VRS scheme, acquisition


of trademarks, patents, shoring up of net working capital,
etc..
Where the loan is for shoring up of NWC, then the loan
amount should come down commensurate with the
building up of the NWC.
It should be ensured that the loan amount is not diverted
for purchase of land or shares for speculative purposes.

4 Type of facilities : Clean Term Loan

5 Quantum of Finance : Minimum Rs.25lacs


Maximum Rs.10 crores for non corporate(C&I – Mfg.) /
SSI borrowers
No cap for corporate borrowers
6 Margin : Not applicable

7 Rate of Interest : At least one step higher than the applicable rate as per
the CRA rating

8 Security: :
- Primary First charge on assets created from bank finance or
extension of first charge on current assets as the case
may be.
- Collateral 1. First charge on fixed assets on pari passu basis
with other term lenders In case this is not possible
for valid reasons, second charge on fixed assets
should be obtained.
2. Personal Guarantee of promoters/partners/
proprietor should be obtained. In the case of
Corporates, pledge of promoters' equity should be
explored.
9 Processing fees As applicable to SSI / C&I units

10 Repayment Repayment period not to exceed 3 years at quarterly/half


yearly intervals. Uneven or bullet instalments may also
be permitted based on the cash flows
11 Documentation : As per simplified SME Documentation
12 Special features : ¾ The discretionary powers are those applicable to
term loans.
¾ A second Corporate loan may also be considered
while the first loan is outstanding subject to all the
earlier loans and WC advances being regular and the
conduct of the accounts has been regular.

Product Highlights:

Corporate loans have been in vogue for sometime for corporate entities. It is a clean
term loan which can be used for any specified purpose connected with the unit such as
shoring up of net working capital, VRS scheme for its employees, advertisement
campaign, replacing high cost debt with low cost funds and so on. The loan can be
extended for a minimum amount of Rs.25 lacs to Rs.10crores for non –corporates and
for any amount for a corporate.

Marketing tips:

Ä This is a useful product to attract the borrowal units of other banks to our
books subject to fulfillment of takeover norms.
Ä Units which are facing liquidity crunch can be offered this loan to shore up
their working capital funds.
Ä Units which are contemplating VRS scheme to reduce their wage bill are a
good source for this product.
Ä Units which are about to launch a new product and require to spend on
advertisement and promotion can avail this facility.

FAQs
Ä Can improved pricing be offered to units below the applicable rate for
attracting good business connections?
Based on merits on a case to case basis, finer pricing can be offered after
obtaining approval from the appropriate authority.
Ä Who is the appropriate authority?
If the pricing is to be the same as that applicable as per CRA rating, the
sanctioning authority has the discretion to approve the same. For any further
improvement in pricing, the authority will depend upon the quantum of
reduction sought in the rate of interest to be charged.

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RENT PLUS

1. Target Group : Owners of large commercial / office spaces rented out to


large corporates, MNCs, banks, PSUs, our Bank, etc. in
Metro/urban areas.

2 Eligibility : Individuals /partnership firms/ corporates

3 Purpose : To meet liquidity mismatches

4 Type of facilities : Term Loan

5 Quantum of Finance : Minimum Rs.50,000/-


Maximum
Metro & urban Centres - Rs.10 crs.
Subject to 60% of the gross rental income for the
residual lease period less (advance rent received+
property tax + income tax + other statutory dues of the
lessor) or 85% of the market value of the property
whichever is less

6 Margin : 40% (CGMs of Circles have discretion to reduce the


margin to 30%
7 Rate of Interest : For loans upto 3 years - 0.25% above SBAR
Above 3 years upto 7 years - 0.50% above SBAR
for the full period
Above 7 years upto 10 years - 0.75% above SBAR
For the full period
Finer pricing as per CPPD guidelines for competitive
pricing
8 Security:
- Primary : Assignment of receivables and recording of power of
attorney with the lessee is mandatory
- Collateral
¾ First charge on property rented out or any other
property of a value not less than 120% of the loan
amount
¾ Personal guarantee of partners / directors
In the case of public limited companies if the collateral of
120% is available, the personal guarantees of directors
may be waived by the sanctioning authority
¾ In case the loan amount does not exceed
Rs.25000/- and the Bank is the lessee, then EM
may be waived subject to the lease deed does not
expire during the currency of the loan
Waiver of EM may be allowed by a sanctioning authority
not less than CCC –I in select deserving cases
• Where lessee is a reputed corporate (eg.
Bank, MNC), and maintaining consistency
in profitability for at least 3 years and is
agreeable to execute the Tripartite
Agreement AND
• Where lessor’s creditworthiness and
integrity are beyond doubt and personal
guarantees of all owners/partners are
available.
9 Processing fees 1% of loan amount to be paid upfront presently as per
CPPD circular No. CPP/JLJ/CIR/39 dated 14.08.2007

10 Repayment In equated instalments at the same frequency at which


rent is received in a maximum period of 7 years or the
residual lease period whichever is less.

11 Documentation : ¾ Application for loan


¾ Arrangement letter
¾ Agreement of loan and power of attorney
¾ Tripartite Agreement between the lessor, the
lessee and the Bank OR
¾ An irrevocable power of attorney from the lessor
to collect the rent which should be duly registered
with the lessee.
¾ Deed of Guarantee if applicable
12 Special features : ¾ The classification of segment is based on the
purpose for which the loan is being availed.

Product Highlights:
This product provides finance against assignment of future rentals. The scheme is
available at metro & urban centres only and is aimed at owners of residential or
commercial projects which have been lease out to large or medium corporates, and
Banks / MNCs. The credit is extended by way of a term loan and is repayable within the
residual period of lease not exceeding 7 years
Marketing tips:

™ This product can be offered to all the owners of our Bank's rented premises
both for branches as well as residential purposes.
™ The product can also be offered to owners of other banks' branch premises as
the terms and conditions of our product are much more attractive than those of
other banks for a similar product.

FAQs
™ Can we accept some other property as collateral than that which has been rented
out and the rent receivables of which are being offered as primary security?
Yes. Any property whose value is estimated to be at least 120% of the loan
amount OR personal guarantee from an acceptable person(s) can be accepted as
collateral .
Ä Can we extend this facility if the lessee is not an MNC/Bank/corporate?

We can give this loan in such cases on merits, subject to obtention of


administrative clearance from GM (Network).

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WORKING CAPITAL FINANCE TO PRIVATE BUILDERS OF RESIDENTIAL FLATS

1. Target Group : Reputed builders with an excellent track record of timely


and quality construction of projects undertaken and of
sound financial strength.
2 Eligibility : Should have completed a few projects
Should have a minimum net –owned funds
The project should have all statutory clearances
The project should be completed in 18 to 24 months
3 Purpose : To meet working capital requirements

4 Type of facilities : Cash Credit


5 Quantum of Finance : The assessment will be based on the projected cash flow
of the project subject to a maximum of 50% of the project
cost or Rs.5 crores or 5 times his net worth, whichever is
less. The reasonableness of the project cost has to be
ascertained from specialised agencies.
6 Margin : At least 50 % of the project cost

7 Rate of Interest : As applicable to C&I advances based on CRA rating

8 Security: : EM of the land. This can be waived in the case of


- Primary reputed builders of good status and financial strength
subject to obtention of personal guarantees of directors/
partners or corporate guarantee of associate concerns
acceptable to the Bank.

Tangible collateral security to the extent feasible should


- Collateral be obtained from the borrower / guarantor.
9 Processing fees As applicable to C&I advances
10 Repayment Within a maximum period of 24 months.

11 Documentation : As per simplified SME Documentation

12 Special features : ¾ All precautions relating to appraisal , sanction


and documentation should be meticulously followed
as this is a high risk product.
¾ It should be ensured that the credit worthiness
and integrity of the major builders are reviewed and
approval obtained for all their projects and also for
specific projects for construction of flats.
¾ No administrative clearance is required in the
case of limits granted by CCC-II and above. In all
other cases, AC has to obtained from CCC-II.
¾ Refer circular CPP/RSN/CIR/10 dt. May 6, 2006.
Product highlights:

Construction activity has been witnessing exponential growth in recent years generating
vast employment opportunities. The Bank has also to tap this opportunity for business
by way of credit facilities, both fund based and non fund based. Construction activity is
financed by way of cash credit for which the assessment is based on cash budget
subject to a limit of Rs.5crores or 5 times the networth of the applicant or 50% of the
project cost whichever is less.

Marketing tips:

¾ Projects taken up by reputed companies should be got assessed in advance by


specialist agencies and kept on record. As and when the application for finance is
received it would be possible to consider the proposal in a short time. Otherwise, either
it will take a long to time to examine all the aspects thoroughly or if the proposal is
cleared in a hurry, chances are critical aspects will be overlooked in this high risk
product.

¾ We can give housing loans for flats in a building for which we have already
extended credit facilities to the builder. It would be easier to process proposals
since the due diligence regarding the project would have already been
completed. The proceeds of the housing loans will be used for extinguishing the
loan to the builder.

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LOANS FROM FCNR(B) FUNDS

1. Salient features of the scheme are as follows:


a) Loans can be granted for manufacturing as well as trading activities of units
rated SB 5/ SBTL 5 and above. Exporters and Industries/Hotels with matching
forex inflows will be preferred.
b) Loans can be granted for working capital as well as Term Loan requirements
by way of FCNR(B) DLs and FCNR(B) TLs. FCNR(B) Demand loans can be
sanctioned for a maximum period of 12 months. FCNR(B) Term Loans can be
sanctioned for a duration of 1 to 5 years. Whenever Term loans are
considered for a period of above 3 years a specific prior clearance needs to be
obtained from FD. In case of loans sanctioned for a period of above 3 years,
Bank will retain the option to convert the loan in to Rupee loan at any time after
3 years from the date of sanction.
c) Loans will be granted in USDollars , Pound Sterling, Euro and Yen if funds are
available
Minimum: US Dollars 50000 or equivalent in other currencies and in multiples
of USD/GBP/EUR 10,000 and JPY 1,000,000 thereafter.
Maximum: US Dollars 20 million per borrower in general for working capital and
term loan put together. After that approval of Dy MD (IBG) will be required
d) Prior funds clearance should be obtained from FD before commitment to
borrowers. In no case sanction of FCNR(B) loans should be communicated to
the borrower before funds allocation clearance is obtained from FD Kolkata.
e) Rate of interest: Base rate is LIBOR for demand loans and for term loans. The
base rate and the spread over it range according to the credit rating of the unit.

CREDIT RATING INTEREST INTEREST


RATE % 12 TO RATE % 37 TO
36 MONTHS 60 MONTHS
PRIME LIBOR + 2.25 LIBOR + 2.50
SBTL 1 LIBOR + 3.25 LIBOR + 3.75
SBTL 2 LIBOR + 3.75 LIBOR + 4.25
SBTL 3 LIBOR + 4.00 LIBOR + 4.50
SBTL 4 LIBOR + 4.50 LIBOR + 5.00
SBTL 5 LIBOR + 4.75 LIBOR + 5.25
f) Withholding Tax-nil
g) Processing Fee- for FCNR(B) DLs -there is no separate processing fee if it is
already recovered at the time of fixing the overall limit. For FCNR(B) TLs
processing fee applicable to the equivalent to the Rupee term loan should be
recovered.
h) Transaction Cost-Upfront
Rs.25,000/- for each FCNR(B) DL
Rs.35,000/- for each FCNR(B) TL to be credited to Branch Commission A/C.
i) Commitment Charge- ( for both DLs and TLs)
For disbursement,time allowed without committment charge is 15 days from the
date of allocation of funds.
If availment of disbursement is after 15 days but before three months,
commitment charge @ 1% per annum is chargeable which should be credited
to Branch Interest account.
If not availed within three months apart from charging commitment charge @
1% per annum, the loan would be treated as cancelled.
j) Transfer Price Mechanism: 80% of the interest recovered will have to be given
as Central Office interest irrespective of business segment.
k) Branches to revalue the balances half-yearly at rates advised by FD.
l) Penalty for early payment (Minimum lock-in period of 3 months)
For early repayment of the loan, a penalty at 1.5% per annum on the amount of
the loan prepaid,for the unexpired period of the loan is charged.
m) For repayment of FCNR(B) loans, Authorised Dealers can sell foreign currency
to borrowers without RBI permission. These loans can also be repaid by
adjustment of advances/inward remittances/export proceeds/balances in EEFC
accounts/other forex inflows. In the event of no funds being available in the
borrower’s account, an overdraft/irregularity is to be created for remitting
the FCNRB (DL) / instalments of FCNRB(TL) on due date to FD. Kolkata.

n) The scheme is operated at designated branches(DBs). Other branches can


operate the scheme through DBs.
o) If customers wish to book forward sale contracts for their interest liability they
may be permitted to do so by giving these contracts separate treatment

2. FCNR(B) DEMAND LOANS

a) Period: Up to a period a twelve months.


b) Within the Rupee MPBF fixed for the borrower and the Fund Based Working
Capital sanctioned by the Bank.
c) It can be part of either working capital demand loan or cash credit component. If
Rupee WCDL has been converted to FCNR(B) DL then maturity of the FCNR(B)
DL will be same as that of Rupee WCDL. Availment of FCNR(B) DL for broken
period is also permitted
d) Disbursed in one lump sum, so also the repayment.
e) Loans can be granted on fully hedged basis. Waiver for booking of Forward cover
can be approved by the Credit sanctioning authority not below the rank of CCC-1,
if the corporate has natural hedge or well laid out corporate hedging policy.
However, wherever waiver is permitted, Bank reserves the right to insist on
hedging any time during the currency of the loan based on period reviews
undertaken or whenever major adverse movement in exchange rates take place.
f) FCNR(B) DL can be utilised to prepay the WCDL, with the approval of the
controlling authority.
g) The number of WCDL and FCNR(B) DLs put together should not exceed seven
per borrower.
h) For exporters, FCNR(B) DL in lieu of EPC (carved out of EPC limits) can be
sanctioned. Such credits to exporters would amount to export credit.
Adjustment of advance/inward remittances/export proceeds, balances in
EEFC/EFCA a/cs etc. can be made in FCNR(B) DL.
i) Revaluation of outstandings should be made at the beginning of each month to
assess whether the Rupee liability is within the capacity of the borrower. If not
FCNR(B) DLs should be converted into WCDL under advice to controllers.
j) Interest should be recovered for FCNR(B) DLs at monthly intervals at the ruling TT
Selling rate for the Foreign Currency amount.If the interest amount is Rs.10 lakhs
and above finer rates can be applied.

Back to
Index
Construction Equipment Loan (CEL)

1. Target Group : Contractors, Firms, firms engaged in construction


activity
2 Eligibility : Minimum rating of SB3 or equivalent in new model

3 Purpose : Line of Credit for financing new machinery / equipment /


vehicles for construction activities

4 Type of facilities : Term Loan

5 Quantum of Finance : Minimum Rs.25 lacs


Maximum Rs. 25crores ( Rs.50crores in Delhi, Kolkata,
Chennai, Mumbai, Hyderabad and Bangalore )
6 Margin : 15% - 20% in case of SB1 SB2 borrowers.
20 – 25% for others

7 Rate of Interest : For SB1 & SB2 borrowers: 1.50% below SBAR
For others : 1.25% below SBAR
No further concession would be considered.
8 Security: : 1.Hypothecation of machinery/ equipment / vehicles
- Primary financed by the Bank.
2. Registration Charge with RTA
3. Pre payment cheques for principal amount, favouring
SBI a/c CEL…….(Name of borrower)
- Collateral
Hypothecation of other unencumbered equipment or EM
of property to the extent of at least 25% of the loan
amount
9 Processing fees For SB1, 2 borrowers – Rs.200 per Rs.1 lac loan
amount
For other borrowers – Rs.300 per Rs.1 lac loan amount
Sanctioning authority has discretion to reduce upto 50%
Documentation Charges:
For SB1 SB2 borrowers – Rs.5000/-
For others - Rs.10000/-

10 Repayment 2 to 3 years extendable to 4 years on merits from the


date of first disbursement by way of EMIs

11 Documentation : As per simplified SME Documentation

12 Disbursement In tranches within a maximum of one year from the date


of sanction, each tranche being not less than 10% of the
loan amount
13. Pre Payment 1% of the amount prepaid
Charges
For SB1 &2 borrowers : @1% per month for the default
14. Penal interest amount and for others @ 2% per month for the default
amount
The sanctioning authority has the discretion to reduce
upto 50%

15. Inspection Half yearly


Comprehensive insurance policy with endorsement in
16. Insurance favour of SBI as “loss payee”

CONSTRUCTION EQUIPMENT LOAN – JCB MACHINES

1 Eligibility Those engaged in construction activity

Purchase of equipment manufactured by JCB


2. Purpose
Minimum Rs.15 lacs
3. Quantum Maximum : Rs.100 lacs

25% for borrowers who are new to this line of business


4. Margin 15% in case of borrowers having 9 machines
5% in case of borrowers having more than 9 machines

5. Repayment Upto 4 years including a moratorium of upto 3 months

6. Interest For SB1 to SB5 (new rating); at SBAR


For SB6 to SB9 (new rating) : 0.50% above SBAR
For borrowers not subjected to CRA rating: 0.50% above
SBAR
Those with CRA rating below SB9 should not be
financed.

7. Penal interest 2% for the amount and period in default

Note :-
• All other terms and charges as per card rates. Back to
• This scheme is valid 31.03.2010 Index
SME CARE

14. Target Group : Existing SME borrowal units

15. Eligibility : Customers of the following segments with a satisfactory


track record having fund based limits upto Rs.10 crores
and subject to
¾ unit should have earned profits for the last 3 years
¾ It has submitted financial statements and stock
statements etc. regularly
¾ The limits have been renewed on time
¾ The debit / credit summations in the loan account
are by and large satisfactory
16. Purpose : For holding higher inventory / carry receivables for an
increased period of upto 6 months, necessitated on
account of slump in the markets during the current year
17. Type of facilities : Working Capital Demand Loan
18. Quantum of Finance : Maximum of 20% of the existing working capital fund
based limits
19. Margin : As applicable to the existing facility
20. Rate of Interest : As applicable to the existing facility
21. Security: : Existing security of all credit facilities including fund
- Primary based and non fund based to be extended to cover this
loan
- Collateral
22. Processing fees As applicable
23. Repayment : Moratorium for the first six months during which only the
interest has to be serviced and the outstandings have to
repaid in the next six months by monthly or quarterly
instalments.
24. Documentation : As per the nature of the facility
25. Special features : ¾ This facility has to extended on merits on a case
to case basis
¾ Loans upto Rs.1 crore to be sanctioned by Chief
Manager of the Branch / RBO /CPC
¾ Loans upto Rs.2 crores to be sanctioned by
AGM of the Branch / RBO / CPC
In case the total indebtedness exceeds the
discretionary powers of the CM / AGM, then the
sanctions have to be put up to the appropriate
authority as per the delegation of powers for
sanction of advances based on the total
indebtedness of the unit, within 15 days of sanction
for necessary validation.

Back to
Index
SME HELP

26. Target Group : Existing SME borrowal units

27. Eligibility : Customers of the following segments with a satisfactory


track record having fund based limits upto Rs.10 crores
and subject to
¾ unit should have earned profits for the last 3 years
¾ It has submitted financial statements and stock
statements etc. regularly
¾ The limits have been renewed on time
¾ The debit / credit summations in the loan account
are by and large satisfactory
28. Purpose : For funding urgent / additional requirements of machines
/ tools / gen sets and any other fixed asset
29. Type of facilities : Term Loan
30. Quantum of Finance : 85 % of cost
31. Margin : 15%
32. Rate of Interest : 8 % per annum for one year and normal rates as
applicable from time to time
33. Security: : Existing security of all credit facilities including fund
- Primary based and non fund based to be extended to cover this
loan
- Collateral
34. Processing fees As applicable
35. Repayment : Upto 5 years
36. Documentation : As per the nature of the facility
37. Special features : ¾ This facility has to extended on merits on a case
to case basis
¾ These loans to be sanctioned as per the
discretionary powers of the sanctioning
authorities

Back to
Index
Application Form for eVFS Facility

Customer No.
Account No.
Branch
Date

1. Full Name of Company:

2. Address:
Registered Office Business/ Factory Address

Pin: Pin:

3. Telephone: 4. Fax:

5. Mobile: 6. E-mail ID of the Co./ Firm:

7. Please tick (√) the constitution of the firm (Refer to Annexures for documents to
be submitted):

Sole Proprietorship Firm Partnership Firm


Joint Hindu Family Private/Public Limited Company
Club/Association/Society Trust
Any other
(Please Specify)
8. Name of Chief Promoter:

9. Gender: M/F

10. Address:

11. Phone: 12. Mobile:

13. Fax: 14. E-mail:

15. Business Premises:


Ownership of Business Premises Owned Annual Rent (Rs.) Leased till
(tick)

16. Management (Directors/ Partners)


Name Age Qualification Experience

17. Key Managers and Positions Held


Name Designation Qualification Experience

18. Share holding pattern of the company is as under: (Position as on 31.03.2008)

Name of the Shareholder No. of Shares Face Value of Holding %age Share

19. Photographs:

Name(s) of Proprietor/ Partners/ Specimen Signature (with Signature, Name and S.S.
Persons (in case of Companies/ Rubber Seal) No. of Verifying Official
Trusts, etc.)/ authorized to
operate the account

20. Existing Banking Arrangement:

Present bankers: Bank and Branch Name


(Rs in lacs)
Type of facility Limit O/s as on Account Security
Availed SBI Other SBI Other Number
Fund Based (FB)
Term Loan
WC for Stocks
WC for receivables
Any other
Non Fund Based
(NFB)
LC
BG
TOTAL (FB+NFB)

21. Is the unit Rated by it’s bankers


Yes: No:
If Yes, Rating for last two years:

22. Has the company ever been rated by any external agency:
Yes: No:

If Yes, Please mention the name of External Rating Agency, year and the latest
rating
23. Details of other business or identical business (Associate/ Sister/ subsidiary
concern if any):
Name of Name of Main Bankers WC Limit T/L (O/S) Other
Unit Proprietor/ Activity Name (Lacs) (Lacs) facilities
Partner (Lacs)

24. Supply of goods to Industry Majors:


(Rs in lacs)
Name of Industry Names of Items/ Applications Sales (2007- Sales (2008-
Major Assemblies 2008) 09 -- months)

25. Plans for expansion/ modernization in the next 2 years

26. Do you wish to avail SMS/ E-mail intimation facility of SBI? Yes No
(You will receive one SMS/ e-mail/ both the moment your account gets credited)

a) Please provide mobile number where SMS will be sent:


b) Please provide e-mail id:

27. Last 12 months sales figures to the IM


(Rs In Lacs)
April May June July August September

October November December January February March

28. Brief particulars about significant developments that took place in your business
in the last and current financial year. State reasons if there was/ is a substantial
increase/ decrease in the projected turnover.
29. Please enclose last 2 year’s audited balance sheets along with your sales
projections for the whole company and to the IM separately for the current year
along with a copy of the latest purchase order/s received from the IM.

Other information:
Date of Establishment/ Incorporation:
Sales/ Excise Tax Reg. No:
PAN/ GIR Number or Form 60/61 of Income Tax Rules:
I/ We request you to provide the eVFS facility to me/us for Rs._____________. I/We
declare that the information given in the application form are true, correct and
complete and that they shall from the basis of any kind of facility State Bank of India
may deicide to extend to me/us. I/We shall furnish all other information that may be
required by the Bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate
safe guards/action for recovery of bank dues including publication of defaulters’
names in website/submission to RBI. I/We confirm that I/we have no borrowing
arrangements for the unit with any bank except those indicated in the application.
I/We confirm that I/We are not defaulter of any bank/any financial institution. I/We
confirm that there are no over dues / statutory dues owed by me/us and I/We
have/had no insolvency proceedings against me/us nor have I/we ever been
adjudicated insolvent. I/we undertake to abide by the Rules and Regulations of State
Bank of India in respect of the facilities being extended to me/us.

Yours Faithfully,
Name Signature Date

(Authorized Signatories)
Annexure-1

Formalities observed in respect of Proprietorship/ Partnership Firms/ Joint Hindu


Family:
1.
Name(s) Proprietor/ Nationality Address Mobile Phone e-mail Fax
Partners/ Karta/
Coparceners

Mode of operation in case of partnership to be indicated:


(VIZ. All partners jointly/ severally (singly), partner 1 & 2 jointly/ severally (singly),
etc.)
2. Partnership letter dated and No.
obtained on Cos 37, signed by all the partners. (To be compulsorily obtained in case
of partnership firms)
3. Partnership deed dated (wherever
available)
4. Joint Hindu Family Letter dated and No.
obtained on Cos 38, signed by all the adult coparceners. (To be compulsorily
obtained in case of Joint Hindu Family)
5. Personal Information Sheet obtained in respect of all i.e. proprietor, partners,
coparceners, karta (whichever applicable)
6. Letter from Chartered Accountants stating that accounts are standard
7. Copy of PAN card of the firm
8. Copy of address proof of the firm
9. Copy of ID of authorized signatories
10. Copy of address proof of authorized signatories
Annexure-2

Formalities observed in respect of accounts in the names of Clubs, Associations,


Societies, Trusts and of other Fiduciary nature.

1. Copy of Memorandum of Association registered on and


Articles of Association dated obtained.

2. Copy of the Bye Laws dated and resolution dated


of the Society, regulating the conduct of the account, obtained.

3. Copy of relevant extracts of trust deed dated obtained and


perused, with special emphasis on the powers of the trustees to sign cheques,
delegation of authority, borrow money, etc. The relevant proportions are entered in
the Power of Attorney register.

4. Personal Information Sheet of Secretary, President, Managing Trustee, etc.


obtained

5. Letter from Chartered Accountants stating that accounts are standard

6. Copy of PAN card

7. Copy of address proof

8. Copy of ID of authorized signatories

9. Copy of address proof of authorized signatories


Annexure-3
Formalities to be completed in respect of Limited companies:

1. Certificate of Incorporation dated (for inspection and return). A


copy of same is retained.

2. Copy of Memorandum of Association registered on and Articles


of Association dated obtained.

3. Certificate of Registrar of Joint Stock Companies dated that


the company is entitled to commence business (for inspection, entry in the Power
of Attorney Register and return). A copy of the same is retained.

(This certificate is not required when,


a. The company is a private company
b. The company was registered before 1913 and does not invite the public to
subscribe for shares.
c. The company is limited by guarantee and does not have a share capital.)

4. Certified copy of resolution dated , regulating the conduct of the


account, obtained, some what on the following terms:-

We hereby certify that the following resolution of the Board of directors of the              
Company, Limited was passed at a meeting of the Board held on the                                            
and has been duly recorded in the Minute Book of the said company:‐ “resolved:‐ that a bank 
account for the Company be opened with the State Bank of India, and that the said Bank be 
and is hereby authorized to honour cheques, bills of exchange and promissory notes drawn, 
accepted or made on behalf of the Company by                                         and to act on any 
instructions so given relating to the account, whether the same be overdrawn or not, or 
relating to the transactions of the Company.” 
sd/‐                                                                                                                            sd/‐ 
Secretary                                                                                                                  Chairman   
 
                                                                           Sd/‐ 
                                                                           Directors 

5. Personal Information Sheet of the Chairman/ Managing Director/ Chief Promoter


obtained
6. Letter from Chartered Accountants stating that accounts are standard
7. Copy of PAN card of the Company
8. Copy of address proof of the Company
9. Copy of ID of authorized signatories
10. Copy of address proof of authorized signatories
For Office Use

1. Applicant(s) interviewed and purpose ascertained (description)

2. Particulars of identification (Sole Proprietor)


(Photo copies of documents obtained)

3. All formalities except the following have been obtained

Open the Account Account opened on


Account No.

Branch Manager/ Authorised Official Assistant (Signature) Officer


(Signature) (Signature)
Name Name Name
4. Account closed on and transferred to branch on

Authorised Official
STATE BANK OF INDIA

Know Your Customer, Anti


Money Laundering and
Combating Financial
Terrorism Policy
Board approved Policy to be read in conjunction
with the Operating Guidelines

Banking Operations Department


National Banking Group
Corporate Centre
Mumbai

For Internal Circulation only

The document is the approved Policy of State Bank of India in regard to Know Your Customer Standards
to be followed and measures to be taken in regard to Anti Money Laundering and Combating Financial
Terrorism. The document is current as on ________ and incorporates the statutory and regulatory
guidelines issued in this regard upto the 1st July, 2008. This circular can also be viewed and downloaded
from SBI Times, Bank’s intranet site from the link “Policies”.
Policy on Know Your Customer Standards,
Anti Money Laundering and Combating Financial Terrorism Measures

INDEX
Pg.Nos.

1. Preamble 3
2. Objective, Scope & Application 3
3. Definition of Money Laundering 4
4. Obligations under Prevention of Money Laundering Act, 2002 5
5. Money Laundering – Risk Perception 5
6. Definition of a Customer 5
7. Key Elements of the Policy 6
7.1 Customer Acceptance Policy 6
7.2 Customer Identification Procedures 7
7.3 Small Deposit Accounts 8
7.4 Monitoring & Reporting of Transactions 9
7.5 Closure of Accounts 10
7.6 Risk Management 10
8. Employee Training 11
9. Recruitment/Hiring of Employees 11
10. Customer Education 11
11. Introduction of New Technologies 12
12. KYC for the existing accounts 12
13. Branches and subsidiaries outside India 12
14. Correspondent Banking 12
15. Miscellaneous 13
16. Principal Officer 13
17. Review of the Policy 13
Policy on Know Your Customer Standards and
Anti Money Laundering/Combating Financial Terrorism Measures

1. Preamble
Reserve Bank of India has been issuing guidelines in regard to Know Your Customer
(KYC) standards to be followed by banks and measures to be taken in regard to Anti
Money Laundering (AML) and Combating Financial Terrorism (CFT). The guidelines
incorporate the:
• obligations cast on banks under the Prevention of Money Laundering Act
(PMLA), 2002
• recommendations made by the Financial Action Task Force (FATF) on AML
standards and CFT
• paper issued on Customer Due Diligence (CDD) for banks by the Basel
Committee on Banking Supervision
Banks are required to put in place a comprehensive policy framework, duly approved by
the Board of Directors, in this regard. This policy document has been prepared in line
with the RBI guidelines and incorporates the Bank’s approach to KYC, AML and CFT
issues.

2. Objective, Scope and Application of the Policy:


• The primary objective of the Policy is to prevent the Bank from being used,
intentionally or unintentionally, by criminal elements for money laundering or
terrorist financing activities. Purposes proposed to be served by the Policy are:
(i) To prevent criminal elements from using the Bank for money laundering
activities
(ii) To enable the Bank to know/understand the customers and their financial
dealings better which, in turn, would help the Bank to manage risks
prudently
(iii) To put in place appropriate controls for detection and reporting of
suspicious activities in accordance with applicable laws/laid down
procedures.
(iv) To comply with applicable laws and regulatory guidelines.
(v) To ensure that the concerned staff are adequately trained in
KYC/AML/CFT procedures.
• This Policy is applicable to all domestic branches/offices of the Bank and is to be
read in conjunction with related operational guidelines issued from time to time.
• It shall also apply to the branches and majority owned subsidiaries of the Bank
located in countries which do not or insufficiently apply the FATF
recommendations, to the extent local laws permit. When local applicable laws and
regulations prohibit implementation of these guidelines, the same should be
brought to the notice of RBI. In case there is a variance in KYC/AML standards
prescribed by RBI and the host country regulators, braches abroad/overseas
subsidiaries will be required to adopt the more stringent regulation of the two.

3. Definition of Money Laundering


Section 3 of PMLA has defined the “offence of money laundering” as under:
“Whosoever directly or indirectly attempts to indulge or knowingly assists or
knowingly is a party or is actually involved in any process or activity connected
with the proceeds of crime and projecting it as untainted property shall be guilty of
offence of money laundering”.

Money launderers use the banking system for cleansing ‘dirty money’ obtained from
criminal activities with the objective of hiding/disguising its source. The process of
money laundering involves creating a web of financial transactions so as to hide the origin
and true nature of these funds.

For the purpose of this document, the term money laundering would also cover financial
transactions where the end use of funds goes for terrorist financing irrespective of the
source of the funds.

4. Obligations under Prevention of Money Laundering (PML) Act 2002


Section 12 of PMLA places certain obligations on every banking company, financial institution and intermediary, which include
(i) maintaining a record of prescribed transactions
(ii) furnishing information of prescribed transactions to the specified authority
(iii) verifying and maintaining records of the identity of its clients
(iv) preserving records in respect of (i), (ii) and (iii) above for a period of ten years
from the date of cessation of transactions with the clients.

These requirements have come into effect from the 1st July, 2005 i.e. the date on which PMLA was notified by the Government of India and
rules framed there under.

5. Risk Perception

Non compliance with KYC standards, use of the portals of the Bank for Money Laundering/financing terrorism activities expose the Bank to various
risks, such as Operational Risk, Reputation Risk, Compliance Risk and Legal Risk etc.

.
6. Definition of a Customer
A customer, for the purpose of the Policy is defined as:
(i) a person or an entity that maintains an account and/or has a business relationship
with the Bank
(ii) one on whose behalf the account is maintained (i.e. the beneficial owner)
(iii) beneficiaries of transactions conducted by professional intermediaries, such as
Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law,
and
(iv) any person or entity connected with a financial transaction.

7. Key Elements of the KYC Policy


The KYC Policy of the Bank has the following key elements:
• Customer Acceptance Policy
• Customer Identification Procedures
• Monitoring of Transactions and
• Risk Management
While the Policy directions are given in this document, the detailed operating guidelines
are being issued separately which should be referred to for effective implementation of the
Policy.

7.1 Customer Acceptance Policy


Bank’s Customer Acceptance policy (CAP) lays down the criteria for acceptance of
customers. The guidelines in respect of the customer relationship in the Bank broadly are:
(i) No account is to be opened in anonymous or fictitious/benami name(s)/entity(ies)
(ii) accept customers only after verifying their identity, as laid down in Customer
Identification Procedures (discussed later)
(iii) classify customers into various risk categories and, based on risk perception, apply
the acceptance criteria for each category of customers. Also, a profile of each
customer will be prepared based on risk categorisation
(iv) Documentation requirements and other information to be collected, as per PMLA
and RBI guidelines/instructions, to be complied with
(v) Not to open an account or close an existing account (except as provided in
paragraph 7.5 of this Policy), where identity of the account holder cannot be
verified and/or documents/information required could not be obtained/confirmed
due to non-cooperation of the customer
(vi) Identity of a new customer to be checked so as to ensure that it does not match
with any person with known criminal background or banned entities such as
individual terrorists or terrorist organizations etc.
(vii) Implementation of CAP should not become too restrictive and result in denial of
banking services to general public, especially those who are financially or socially
disadvantaged.

7.2 Customer Identification Procedures


Customer identification requires identifying the customer and verifying his/her identity by
using reliable, independent source documents, data or information. Thus, the first
requirement of Customer Identification Procedures (CIP) is to be satisfied that a
prospective customer is actually who he/she claims to be. The second requirement of CIP
is to ensure that sufficient information is obtained on the identity and the purpose of the
intended nature of the banking relationship. This would enable risk profiling of the
customer and also to determine the expected or predictable pattern of transactions.
Identification data, as under, would be required to be obtained in respect of different
classes of customers:
1. For customers that are natural persons:
a) Address/location details
b) Recent photograph
2. For customers that are legal persons:
a) Legal status of the legal person/entity through proper and relevant
documents
b) Verification that any person purporting to act on behalf of the legal
person/entity is so authorized and identity of that person is established and
verified
c) Understand the ownership and control structure of the customer and
determine who are the natural persons who ultimately control the legal
person

Wherever applicable, information on the nature of business activity, location, mode of


payments, volume of turnover, social and financial status etc. will be collected for
completing the profile of the customer.

Customers will be classified into three risk categories namely High, Medium and Low,
based on the risk perception. The risk categorization will be reviewed periodically.

The Customer Identification Procedures are to be carried out at the following stages:
o while establishing a banking relationship;
o when the bank feels it is necessary to obtain additional information from the
existing customers based on the conduct or behaviour of the account.
o Customer identitification data (including photograph/s) should be periodically
updated after the account is opened. Such verification should be done atleast once
in five years in case of low risk category customers and not less than once in two
years in case of high and medium risk customers.
o Customer Identification will also be carried out in respect of non-account holders
approaching bank for high value one-off transaction as well as any person or entity
connected with a financial transaction which can pose significant reputational or
other risks to the Bank.

7.3 Small Deposit (No Frills) Accounts:


With a view to ensuring financial inclusion such that persons, especially those belonging
to low income group both in urban and rural areas, who are not able to produce such
documents required by the Bank to satisfy about their identity and address, are not denied
banking services, branches may open Small Deposit (No Frills) accounts, for natural
persons only, with relaxed KYC standards, as detailed in the operating guidelines. Persons
desirous of opening such accounts can keep aggregate balances not exceeding Rs.
50,000/- (Rupees fifty thousand only) in all their accounts taken together and the total
credit, again in all accounts taken together, should not exceed Rs. 1,00,000/- (Rupees one
lac only) in a year.

If at any point, the balances in all his/her accounts with the Bank (taken together) exceeds
Rs. 50,000/- (Rupees fifty thousand only) or total credit in all accounts taken together
exceeds Rs. 1,00,000/- (Rupees one lac only) in a year, no further transactions will be
permitted until full KYC procedure is completed. Bank would notify the customers when
the balances reach Rs. 40,000/- (Rupees forty thousand only) or total credit in a year
reaches Rs. 80,000/- (Rupees eighty thousand only) so that appropriate documents, for
complying with full KYC requirements are submitted well in time to avaoid blocking of
transactions in the account.

7.4 Monitoring and Reporting of Transactions


Monitoring of transactions will be conducted taking into consideration the risk profile of
the account. Special attention will be paid to all complex, unusually large transactions and
all unusual patterns, which have no apparent economic or visible lawful purpose.
Transactions that involve large amounts of cash inconsistent with the normal and expected
activity of the customer will be subjected to detailed scrutiny.

System supported monitoring of transactions will be done by the AML team under the
Principal Officer, based on alerts thrown up by the AML software acquired by the Bank
and on the basis of feedback/inputs from LHOs, Administrative Offices, Regional
Business Offices and respective relationship points. Simultaneously, however, relationship
points will maintain oversight over the transactions with a view to identifying suspicious
transactions and bringing them to the notice of the Principal Officer.

After due diligence at the appropriate level in the Bank, transactions of suspicious nature
and/or any other type of transaction notified under PMLA will be reported by the
Principal Officer to Financial Intelligence Unit – India (FIU-IND), the appropriate
authority. A record of such transactions will be preserved and maintained for the period as
prescribed in PMLA.

Transactions in the accounts will also be monitored with a view to timely submitting, the
Cash Transaction Report (CTR) in respect of cash transactions of Rs. 10,00,000/- (Rupees
ten lacs only) and above undertaken in an account either singly or in an integrally
connected manner.

All cash transactions, where forged or counterfeit Indian currency notes have been used,
shall also be reported immediately by the branches, by way of Counterfeit Currency
Reports (CCRs) to the Principal Officer, through proper channel, for onward reporting to
FIU-IND.

7.5 Closure of Accounts


Where the appropriate KYC measures could not be applied due to non-furnishing of
information and/or non-cooperation by the customer, the account can be considered for
closure or terminating the banking/business relationship. Before exercising this option, all
efforts will be made to obtain the desired information and, in the event of failure, due
notice, will be given to the customer explaining the reasons for taking such a decision.
The competent authority to permit closure of such accounts shall be the Branch Head
where the relationship level is RM-PB. In all other cases, Asst. General Manager
(Administration) at the respective Administrative office shall be the competent authority
to permit closure of such accounts.

7.6 Risk Management

While the Bank has adopted a risk based approach to the implementation of this Policy, it
is necessary to establish appropriate framework covering proper management oversight,
systems, controls and other related matters.

Bank’s Internal Audit of compliance with KYC/AML Policy will provide an independent
evaluation of the same including legal and regulatory requirements. Concurrent/ Internal
Auditors shall specifically check and verify the application of KYC/AML procedures at
the branches and comment on the lapses observed in this regard. The compliance in this
regard will be placed before the Audit Committee of the Board at quarterly intervals.

The Principal Officer designated by the Bank in this regard will have overall responsiblity
for maintaining oversight and coordinating with various functionaries in the
implementation of KYC/AML/CFT policy. However, primary responsibility of ensuring
implementation of KYC/AML/CFT Policy and related guidelines will be vested with the
respective Business Groups/Circles/SBUs. Suitable checks and balances in this regard will
be put in place at the time of introducing new products/procedures as also at the time of
review of existing products/procedures for overall risk and compliance management. For
this purpose, each Business Group/Circle/SBU will designate an official as Money
Laundering Reporting Officer (MLRO) who would ensure proper implementation and
reporting, as per provisions of this Policy, to the Principal Officer.

8. Employee Training
All employee training programmes, of 6 days’ duration or more, will have a module on
KYC Standards/AML/CFT Measures so that members of the staff are adequately trained
in KYC/AML/CFT procedures.
9. Recruitment/Hiring of Employees
KYC norms/AML standards/CFT measures have been prescribed to ensure that criminals
are not allowed to misuse channels of the Bank. Bank will put in place necessary and
adequate screening mechanism as an integral part of its recruitment/hiring process of
personnel.

10. Customer Education


The Bank recognizes the need to spread awareness on KYC, Anti Money Laundering
measures and the rationale behind them amongst the customers and shall take suitable
steps for the purpose.

11. Introduction of New technologies


Bank will pay special attention to the money laundering threats arising from new or
developing technologies and take necessary steps to prevent its misuse for money
laundering activities. Bank will ensure that appropriate KYC procedures are duly applied
to the customers using new technology driven products.

12. KYC for the existing accounts


While the KYC guidelines will apply to all new customers, the same would be applied to
the existing customers on the basis of materiality and risk. However, transactions in
existing accounts would be continuously monitored for any unusual pattern in the
operation of the accounts. On the basis of materiality and risk the existing accounts of
companies, firms, trusts, charities, religious organizations and other institutions are
subjected to minimum KYC standards which would establish the identity of the natural /
legal person and those of the ‘ beneficial owners’. Similarly, the Bank will also ensure
that term / recurring deposit accounts are subject to revised KYC procedures at the time of
renewal of the deposits on the basis of materiality and risk.
13. Branches and subsidiaries outside India
This policy shall also apply to the branches, subsidiaries and majority owned joint
ventures located abroad to the extent local laws of that country permit. Based on this
policy, each foreign office is required to put in place an Anti-Money Laundering Policy
(duly approved), which shall also contain the KYC Guidelines and Suspicious Transaction
Reporting Procedures as may be required by the rules and regulations of the host country.

14. Correspondent Banking


This policy will apply to our dealings with correspondent banks. For correspondent
banking relationship an appropriate due diligence procedure will be laid down keeping in
view KYC standards existing in the country where the correspondent bank is located and
the track record of the correspondent bank in the fight against money laundering and
terrorist financing.

15. Miscellaneous:
• Information collected from the customers for KYC compliance should be relevant to
the perceived risk, not intrusive and should be treated as confidential. The same is not
to be used/divulged for cross selling or any other such purpose.
• Any remittance of funds by way of demand drafts, mail/telegraphic transfer or any
other mode and issue of travellers’ cheques for value Rs.50,000 and above is effected
only by debit to customer’s account or against cheques/drafts and not against cash.
• Provisions of Foreign Contribution (Regulation) Act, 1976, as amended from time to
time, wherever applicable, should be strictly adhered to.

16. Principal Officer


The Chief General Manager (Banking Operations) shall be the Principal Officer for
KYC/AML/CFT matters who shall be responsible for implementation of and compliance
with this policy. His illustrative duties, in this regard, will be as follows:-
• Overall monitoring of the implementation of the Bank's KYC/AML/CFT policy.
• Monitoring and reporting of transactions, and sharing of information, as required
under the law.
• Interaction with MLROs in Business Groups/SBUs for ensuring full compliance with
the Policy
• Timely submission of Cash Transaction Reports (CTRs), Suspicious Transaction
Reports (STRs) and Counterfeit Currency Reports (CCRs) to FIU-IND
• Maintaining liaison with the law enforcement agencies, banks and other institutions
which are involved in the fight against money laundering and combating financing of
terrorism.
• Ensuring submission of periodical reports to the Top Management /Board.

17. Review of the Policy


The Policy will be reviewed as and when considered necessary by the Board.

********

Back to
Index
ASST GENERAL MANAGER/ CHIEF MANAGER: - FOR SANCTION

APPRAISAL MEMORANDUM UNDER SME SMART SCORE


Branch:
The proposal conforms to the extant instructions of the scheme. The scores awarded
under credit scoring criteria are as under
SEGMENT : C&I / SSI / SBF
SEGMENT MIN. SCORE MARKS SCORED
Personal Details 15/30
Business Details (or) 25/50
Greenfield ventures
Collateral Conditions 10/20
Total Score 50/100
(To be eligible under the scheme, the unit should get a minimum score of 60% with a
minimum of 50% under each sub-head)
1. PROPOSAL FOR
I. Sanction of
a.
b.
II. Approval for
c.
d.
III. Confirmation of
e.

1.1. Details of Credit limits Rs.in lakhs


Facility Existing Limits Facility Proposed Limits
CC(Hyp) CC(Hyp)
SME Credit Plus SME Credit Plus
TL TL
LC/BG (As sub LC/BG(As sub limit of
limit of CC(Hyp)) CC(Hyp))
Total limits Total limits

3.Name of the Borrower


4.Name of Proprietor
/Partners/Directors
5.Address
Factory

Office

6.Constitution Proprietorship/Partnership/ Private


Limited Company
7.Line of activity
8.Year of Incorporation
9.Banking with SBI since
10.IRAC Status
11.Details of Associate
Concerns/Family Concerns and their
Bankers
Any NPA’s among associates?
12.Date of last sanction
(not applicable for fresh exposures)

13. Position of the account as on (Rs in lakhs)


Facility Limit M.V A.V D.P O/S Irregularity if any

(Not applicable for new units)

14. Brief background & History :-( to be brief and in bullet points only)
(Comments on management, products, tie-up arrangement if any, quality
approvals/certifications etc)

15.Performance and financial indicators: Rs.in lakhs.


YR.BEFORE LAST CURRENT FOLLOWING
LAST YEAR YEAR YEAR
31 March Audited Audited Estimates Projections
Domestic Sales
Export Sales
Net Sales
Profit After Tax
PAT/ Net Sales (%)
Cash Accrual
Paid Up Capital
TNW
TOL/TNW (times)
Current Ratio
Comments on Financials ;( Brief bullet points only)

16.Term Loan:
Project Details Project Cost Rs.
Bank Loan Recommended Rs.
(As per assessment in annexure-III)
Debt /Equity

17. Working Capital Requirement:


Working capital limit of Rs.------ has been assessed for the year --- and Rs.----has been
assessed for the year -----, as per the Projected balance sheet method/traditional
method as per the workings as on annexure-II.
(After satisfactory review of the limits assessed for the first year, additional limits for the
subsequent year shall be released. However documents for the higher of the limits to be
obtained at the initial stage itself.)

18. Comments on conduct of Account: (covering irregularities, non-compliance, LC


devolvement, BG invocations, etc.):

Comments on Summations vis-à-vis sales


Period under review
Credit summations
Debit summations
Gross Sales
Opening Sundry Debtors
Closing Debtors
Comments:

19. Whether (a) the name(s) of the Individual/Directors appear(s) in RBI’s list of
defaulters/RBI’s list of willful defaulters & (b) the Individual/Directors name figures in
ECGC’s caution list
PARTICULARS DATE POSITION
RBI Willful Defaulters list(Non-Suit Filed)Rs.25lacs and
above
CIBIL List(Suit filed) Rs.25 lacs and above
ECGC specific approval list

20. Comments on I&A and other audit reports, which have an impact on credit risk on
the unit:, if any:

Name of report Date of report Serious irregularities/


Adverse features
remaining unattended
Comments in last I&A report & its
present status
Company's audited Balance Sheet
(Qualifications)

21. If the unit has scored less than 60% marks in any of the individual parameters in
SME Smart Score, please comment critically on those parameters (even though the
aggregate score may be more than 60%)

22. Recommendations;
Recommended for sanction of Working Capital limit of Rs.
Term loan of Rs.
Total limit --------------

On the terms and conditions as set out in annexure-IV.


Appraised & Assessed by Sanctioned by

Signature
Name
Designation
Date
Enclosure:
Applicant’s application.& others
Statement of Credit Score arrived as annexure -I.

Controlled by

Signature
Name
Designation
Date
Annexure-I
CREDIT SCORING CRITERIA

Name of the Company / Firm :

Name of the chief promoter / chief executive :


(in case of partnership concerns, where the partners are having equal stake, the
personal profile of the active promoter as decided by the concern could be taken)

1. Personal details :

Sr. Parameters Maximum Marks Criteria Marks


No. marks Scored
1 Age 5 18 to 24 3
25 to 49 5
50 to 59 1
60 to 65 0
2 No.of children 2 Upto 3 2
>3 0
3 Owning a house 5 Own 5
Not owning 0
house
4 Academic qualifications 4 Professional 4
Graduate/PG 2
Metric 1
Below Metric 0
5 Experience in the line of trade 5 > 5 years 5
2 to 5 years 3
< 2 years 0
6 Spouse details 1 Employed 1
Homemaker 0
7 Assessed for income tax 2 Assessed 2
Not assessed 0
8 Deposit account with SBI 5 3 Yrs. & 5
(min. deposit should be above 2
Rs.10,000/- in the period 6 M to < 3 0
under review) Yrs.
<6M
9 Have life insurance policy 1 Yes 1
No 0
30
MARKS SCORED

Minimum score should be 15 marks


2. Business Score :

2.A For existing units which have not so far availed any loan from the Bank. If
takeover from another Bank, takeover norms, prescribed by the bank are to be first
evaluated and fulfilled.
Sr. Parameters Maximum Marks Criteria Marks
No. marks Scored
1 Years in business 5 5 Years & 5
over 3
3 Years to < 1
5
1 year to < 3
2 Continuous net profits 5 Last 3 years 5
(before tax) Last 2 years 3
Last year 1
3 Sales show a rising trend 5 Last 3 years 5
Last 2 years 3
4 Factory premises 3 Owned or
over 5 years 3
of lease 0
Rented
5 Know-how 2 Specialised 2
Common 0
6 Line of activity 1 Priority 1
Sector 0
Non priority
7 Competition 4 Low 4
Medium 2
High 0
8 TOL/TNW (quasi equity to be 5 2 & Below 5
added to TNW and reduced > 2 but upto 4
from TOL) 3 2
> 3 but upto 4 1
> 4 but < 5
9 a Quality of receivables 5 Upto 3
months of 5
sales
> 3 but upto 4 1
months of
sales 0
> 4 months of
sales
9 b Quality of finished goods 5 Upto 1 month
inventory of sales 5
> 1 but upto 2
months of 1
sales
> 2 months of 0
sales
10 Repayment period (not 5 Upto 3 years 5
applicable for only working > 3 to 5 years 3
capital loans) > 5 years 0
11 Gross DSCR (not applicable 5 > 2 5
for only working capital loans 1.6 To 2 2
< 1.5 0
50
MARKS SCORED

Items 10 & 11 are not applicable for working capital loans alone. In that case the score
should be normalized for 50 (marks scored/40)*50
Minimum score should be 25

2B. For Greenfield ventures :


Sr. Parameters Maximum Marks Criteria Marks
No. marks Scored
1 Branch is in the know of 10 Yes 10
business (includes cases No 0
where the project is appraised
by consultants of repute)
2 Manufacturing/servicing/trading 5 Yes 5
process is well known to Mo 0
applicant to
produce/service/trade the
required quality and quantity of
the product
3 Location advantage 2 Yes 2
No 0

4 Availability of utilities including 2 Easy 2


labour Ok 0
5 Firm’s capacity to sell the 5 Good 5
product at the price and Ok 0
quantity
6 Line of activity 1 Priority 1
Sector 0
Non priority
7 TOL/TNW (quasi equity to be 5 1 and below 5
added to TNW and reduced > 1 upto 2 4
from TOL) Competition > 2 upto 3 3
>3 0
8a Quality of receivables as per 5 Upto 3
projections months of 5
sales
> 3 but upto 1
4 months of
sales 0
> 4 months
of sales
8b Quality of finished goods 5 Upto 1
inventory as per projections month of 5
sales
> 1 but upto 1
2 months of
sales 0
> 2 months
of sales
9 Repayment period (not 5 Upto 3 years 5
applicable for only working > 3 to 5 3
capital loans) years 0
> 5 years
10 Gross DSCR (not applicable 5 > 2 5
for only working capital loans 1.5 to 2 2
< 1.5 0
50 / 40
MARKS SCORED

Minimum Marks : 25 out of 50

3. Collateral conditions:

Sr. Parameters Maximum Marks Criteria Marks


No. marks Scored
1 Equitable Mortgage of 15 75% and over 15
property : 50% to <75% 10
Value of property (if TDR or 25% to <50% 5
cash equivalent is offered as <25% 3
security multiply cash NIL 0
equivalent by 2 and add to the
collateral value) / loan amount
(%)
2 Residential property as part of 5 Yes 5
1 No 0
MARKS SCORED 20

Minimum Marks are 10 (except in cases where Collateral should not be asked as per
Bank’s norms, where the minimum marks will be NIL)
Annexure-II

Name of the Borrower:

ASSESSMENT OF WORKING CAPITAL


I. For SSI, SBF and Retail traders:
Rs.in lakhs.
1.Projected Turnover Method (Nayak Committee Estimated Projected
Method) Ist year 2nd Year
a. Estimated Sales for the Current year
b. Working capital required (25% of ‘a’)
Eligible Bank Finance (80% of ‘b’)
Bank finance Required (A)

2.Assessment as per Traditional Method


Estimated Purchases in the current Year
Estimated Average Raw Material Holding at any time
(Calculated at cost of Purchases)
Estimated Average holding of Stock in process and
Finished goods at any one time
(calculated at cost of Production)
Estimated Average Receivable outstanding at any one time
Total Requirement
Less estimated average credit enjoyed on purchases
Less estimated average credit enjoyed on purchases
Less Other Sources like unsecured loans, plough back of
profits etc
Bank Finance Required (B)
Working Capital Assessed/recommended
A or B above which ever is higher i.e

II.For Self Employed and Professionals


50% of Gross annual income as declared in their Income Tax return.

III.Comments on Production aspects: (covering location advantages, availability of


raw material and other utilities like water, power, fuel, labour etc.

IV.Brief Comments on Marketing Aspects:


V. i) Assessment of EPC limits: Rs.in lakhs

Sr. No Particulars Estimated Projected


Ist year 2nd year
1 Estimated Exports
2 Exports - at cost
3 Lead time and usance period
(includes order period / manufacturing period etc.)
4 No. Of Cycles in a year
5 EPC requirement per cycle
6 Less:- Margin on EPC – %
7 Eligible Limit
8 EPC limit recommended

ii) Assessment of EBD limits:


Rs.in lakhs
Sr. No Particulars Estimated Projected
Ist year 2nd year
1 Estimated Exports
2
Exports on Usance bill basis
3 Usance period
4
Lead Time
5 No. of cycles in a year
6 Eligible EBD Facility
7 Limit requested by the unit
8 Limit recommended

iii) Brief Comments on the above limits:

VI. Assessment of Non fund based limits:

i)Assessment of LC limits:
Rs.in lakhs
Annual Raw Material purchases
Monthly Raw Material purchases
Monthly Raw Material purchases through LC’s @ % (A)
Average Usance Period (B)
Lead Time and transit period (C)
Total of ‘B’ and ‘C’ (D)
LC limits required (= A X D)
Recommended LC Limits
Assessment of BG limits:
Rs.in lakhs
Outstanding BGs as on
Add: BG’s required during the next 12 months, as under
1.Earnest Money deposit
2.Security Deposit
3.Advance Payment BG
4.Retention Money Deposit/Maintenance Guarantee
5. Guarantees on account of sales tax, commercial tax and excise duty
payments
Less: Estimated maturity/cancellation of BG’s during the period .
Requirements of BG’s
Recommended BG limit

Brief comments on requirements of above limits:


Annexure-III
Name of the Borrower:

Assessment of Term Loan:


1.Project Details
Rs.in lakhs.
Project cost Cost Margin (%) Margin amount Required
Bank Finance
Land &Buildings
Plant& Machinery
WC margin
Contingencies
Total project cost

Means of finance
Own funds
Borrowings from
friends and
relatives
Bank finance
others
Total means of Debt /Equity :
finance

3. Details of capital expenditure i.e land and factory building as well as machinery
proposed to purchase:

4. Remarks on cost of project & means of finance (in brief)

5. Term Loan Assessment: Rs.in lakhs


Years 1 2 3 4 5 6
(Act) (E) (E) (E) (E) (E)
Net Profit
Depreciation
Cash Accruals
Repayment obligations
(including Interest)
DSCR
Average DSCR

6. Project implementation schedule:

7. Comments on Commercial viability:


Annexure-III-A
(for SRTO’s)

Name of the Borrower:

Term Loan assessment for Transport Operators (SRTO)


Cost of Vehicle/s Rs.
Borrower’s Margin ( %) Rs.
Term loan recommended Rs.
Assessment:
Earnings
1 Total No. of Kilometers to be run per day (estimated)/ No.
of trips per day
2 Earnings per Km / earning per trip
3 No. of working days in a month
4 Total monthly earnings 1 x 2 x 3 …..A
Expenses
5 Cost of Fuel per litre
6 Quantity of fuel required per month
7 Cost of fuel per month
8 Monthly Wages / batta for driver / cleaner etc
9 Maintenance
10 Repair
11 Insurance (annual premium / 12)
12 MV Tax (annual tax /12)
13 Interest on borrowings
14 Sustenance
15 Other expenses
Total Monthly Expenses (5 to 15)….B
16 Monthly surplus …. A - B
17 Monthly TL repayment
18 DSCR 16/17

Brief details of above workings:


Annexure-IV
Name of the Borrower:

TERMS AND CONDITIONS


1. Facility
Limit
2. Security
Primary WC:
TL:
Collateral

Personal Guarantee
(Indicate Net worth of
Guarantors with date
of compilation of
opinion reports)
3. Interest CC(HYP):
(Linked to SBAR) TL:

4. Margin(%) Stocks: Term loan:


Receivables:
Cover Period:
BG/LC (cash Margins):
4. Repayment CC(HYP):- Repayable on demand.
TL:
5. Validity of Sanction, Sanction valid for two years. A review shall be made after 12
Review/Renewal months.
6. Inspection Quarterly
7. Stock Statement To be submitted monthly.
7. Insurance
8. Processing fee
9. EM Charges
10. Commitment Charges CC(HYP):-
Term Loan:-
11. Penal Interest
12. Documents As per SME Documentation
13. Other Stipulations, if
any.
FORMAT FOR ANNUAL REVIEW /RENEWAL OF LOANS
SANCTIONED UNDER SME SMART SCORE

PROPOSAL FOR REVIEW OF WC AND TERM LOAN SANCTIONED UNDER ‘SME


SMART SCORE' SCHEME.
1.Name of the unit
2 Constitution Proprietorship/Partnership/Private limited Company
3.Name of the
Proprietor/partners/
/directors
4. Business Address

Phone/Cell No.
5.Nature of activity
6. a).Date of Last
Sanction/review
b) Sanction is Valid up to
7. IRAC Position as on
8.Present Position of Facility Limit DP O/S Irregularity if
Accounts as on date any
(Rs. In lakhs) CC
TL
LC/BG
Comments on Conduct of above accounts:
9.Financial parameters
(Rs. In lakhs) Year Earlier Actual Estimated
Estimated achieved (Current
(previous (previous year)
year) year)
Net sales
PBT
Cash
Accrual
TNW
TOL/TNW
CR
Comments( to be commented on actuals for deviations
over estimates, if any)

9. Conduct of WC a/c Annual Turn over estimated Rs.


(Rs. In lakhs) Annual Credit Summations in the account Rs.

Value of the account: Rs.


(Interest/Exchange/commission Booked)
Cross selling Products Booked :
(Give the name of the products booked)
Retail Business Booked
Number of retail loans and amount booked for the
promoters/employees :

10. Whether earlier


sanction terms complied
with.
11. Whether irregularities
observed in I&A report
rectified.?
If not present status
12.Other Comments
( from Risk Angle)
(On associates, conduct
of accounts, Competition,
quality of products, CIBIL
report for individuals or
corporate as applicable
etc., and other relevant
risks. Bullet points only)

14. Recommendations
The Conduct of WC loan and Term loan has been reviewed and found satisfactory. The
Credit Score for renewal of limits is as per annexure –I, is satisfactory.

1.Recommended for continuation of Working Capital limit of Rs.

2. Recommended for release of additional working capital limit of Rs. as per the original
sanction on (give date) for the projected year-----

On the above terms and conditions as already set out in the original sanction dated—

Appraised by Approved by

Signature
Name
Designation
Date
Name of the Borrower:

Credit Scoring Model for Renewal proposals

Sr. Parameters Maximum Marks Criteria Mar


No. marks Scored ks
1 Actual sales/projected sales 10 90% & above 10
70% to < 90% 8
50% to < 70% 5
Below 50% 2
2 PBT/NS (%) 10 Increasing 10
Flat 5
Decreasing 1
3 Change in TOL/TNW during 5 Decreasing and
the year upto 3 5
Decreasing but
above 3 3
Increasing but
upto 3 3
Increasing but
above 3 0
4 Overall conduct of the 15 Excellent 15
account and working of the Good 10
unit OK 5
5 Credit summations in the 10 90% & above 10
account during the preceding 70 – 89% 7
12 months 50 – 69% 5
< 50%
(% of sales) NIL
MARKS SCORED 50

Minimum Marks should be 30/50

Veto Power if the account is unsatisfactorily conducted


iv) cheques are frequently returned
v) debit balance (outstanding) is over the drawing power for over 160 days in the
year
vi) non-compliance of critical terms and conditions

(frequent devolvement of LCs and invocation of guarantees/non receipt of


stock statements etc. have not been mentioned as they would be reflected in
ii)

Appraised by Approved by

Name
Date
APPRAISAL NOTE FOR SME CREDIT CARD
(Quantum of Finance Maximum Rs.10.00 lakhs)

PROPOSAL FOR SANCTION OF


1.
2.

CREDIT SCORE: /60. (Minimum 36) (as per annexure-I) Segment : SSI/SBF/C&I
1.Name of the unit
2 Constitution
Registration No. of the
unit.( if applicable)
3.Name of the Proprietor/
Partners /directors
4. Business Address

Phone/Cell No.
5.Nature of activity
6. Banking with us from
7.Details of Limits as on Existing Limits Proposed Limits
date. (Rs.in lakhs) CC(Hyp) CC(Hyp)
TL TL
LC/BG LC/BG
Total indebtedness
8.Brief History 1.
(Brief bullet points only) 2.
(on Management, 3.
products, marketing tie- 4.
up etc.,) 5.

9.Project Details Project Cost Rs.


(If term loan is required) Bank Loan Recommended Rs.
(As per assessment in annexure-III)
Debt /Equity-
10. Financial Position: (Rs in lakhs)
Years 1 2 3 4
(Act.) (Act.) (Est.) (Proj.)
Sales income
Profit
Profit/net sales
Tangible Net worth
TOL/TNW
Current Ratio

11. Working Capital Working capital limit of Rs. Has been assessed as
Requirement per the Projected turnover method (Nayak Committee
method) as per the workings as on annexure-II.
12. Adverse remarks
unattended in last
Inspection & audit report,
if any.
13. Whether borrower/
promoters figure as
defaulters in CIBIL report
for individuals.
14. Details of Associate
concerns. Any NPA’s
15. Terms & conditions
i) Primary Security Hypothecation of plant & machinery purchased out of
bank finance.
Hypothecation of all kinds of Stocks & receivables.
( cover period for receivables ----- days)
ii) Collateral Security
(not applicable if
sanctioned under
CGTFSI)
iii) Guarantee Personal guarantee of Sri.
(Indicate Net worth of Guarantors with date of
compilation of opinion reports)
iv) Margins WC TL
v) Documents As per SME documentation
vi) Submission of Stock To be submitted annually. Submit once in the last
Statements quarter of the year.
vii) Validity WC loan is valid for 3 years, but is subject to annual
review.
viii) Insurance Stocks/Equipment to be insured for full market value for
all possible risks with bank clause.
ix) Inspection Quarterly/Half yearly.
x) Repayment
xi)Rate of interest -------% above/below SBAR, effective rate;
xii) Upfront
fees/Processing Charges
xiii) Charges with ROC
(If applicable)

16. Recommendations
Recommended for sanction of Working Capital limit of Rs.
Term loan of Rs.
Total limit --------------
On the above terms and conditions.
Signature Appraised & Assessed by Sanctioned by
Name
Designation
Date
Enclosure:
Applicant’s application & others
Controlled by
Signature
Name
Designation, Date
Annexure-I
SCORING MODEL - SME CREDIT CARD
NAME OF THE UNIT:-
Sr.No. And Parameters Max Marks Marks scored Criteria Marks
18-30 3
1. Age 3 31-45 2
46 & above 1
Own(NM) 3
2. Owning House 3 Own(M) 2
Not owning 0
Technical 5
Professional/PG 4
3. Academic Qualification 5
Graduates 3
Less than grad. 2

More than 5 yrs 4


3-5 years 3
4. Experience in line of trade 4
1-3 years 2
Less than 1 yr 1
Dealing with SBI More than
3
3 yrs
5. Loyalty(Deposits /Advances) 3 2
1-3 years
1
Less than 1 yr
Employed 2
6. Spouse details 2
Home Maker 0
Assessed 2
7. Assessed For IT 2
Not assessed 0
Yes 2
8. Has Life Insurance Policy 2
No 0
9. Track Record of repayment of Prompt/No loan 3
3
personal loan Irregular 0

Last 5 years 5
10. Continuous Profits 5 Last 3 years 3
Last year 1

Last 5 years 5
11. Sales show rising trend 5 Last 3 years 3
Last year 1

Tie up arrngt. 3
12. Marketing 3 in operation Ancillary 2
Others 1

Less than 1 5
1 to 2 4
13. TOL/TNW 5
2 to 4 3
More than 4 0

More than 1.33 5


14. CA/CL(Current Ratio) 5 1 to 1.33 3
Less than 1 0
More than 2 5
1.5 to 2 3
15. D.S.C.R. 5
1 to 1.5 2
Less than 1 0
100% 5
16. Routing of sales turnover 75% 4
5
through the account 50% 3
<50% 1
TOTAL(NORMALISED TO 60) 60
NB: In case, any of the above parameters is not applicable, the scoring should be normalised out of 60.
Annexure-II

Name of the Borrower:

ASSESSMENT OF WORKING CAPITAL


I. For SSI, SBF and Retail traders:

Projected Turnover Method (Nayak Committee Method)


A. Estimated Sales for the Current year Rs.
B. Working capital required (25% of A) Rs.
Eligible Bank Finance (80% of B) Rs.
Bank finance Required Rs.

Working Capital Assessed/recommended is

II. For Self Employed and Professionals


50% of Gross annual income as declared in their Income Tax return.

III. Comments on Production aspects: (covering location advantages, availability of


raw material and other utilities like water, power, fuel, labour etc.

IV. Brief Comments on Marketing Aspects:


Annexure-III

Name of the Borrower:

Assessment of Term Loan:


1.Project Details
Rs.in lakhs.
Project cost Cost Margin (%) Margin amount Required
Bank Finance
Plant& Machinery
Land &Buildings
WC margin
Contingencies
Total project cost

Means of finance

Own funds
Borrowings from
friends and
relatives
Bank finance
others
Total means of
finance

Debt /Equity-

2. Term Loan Assessment: Rs.in lakhs


Years 1 2 3 4 5 6
(Act) (E) (E) (E) (E) (E)
Net Profit
Depreciation
Cash Accruals
Repayment obligations
(including Interest)
DSCR

Average D.S.C.R-

3. Details of machinery/equipment proposed to purchase:

4. Project implementation schedule:


Annexure-III-A
(for SRTO’s)

Name of the Borrower:

Term Loan assessment for Transport Operators (SRTO)


Cost of Vehicle/s Rs.
Borrower’s Margin ( %) Rs.
Term loan recommended Rs.
Assessment:
Earnings
1 Total No. of Kilometers to be run per day (estimated)/ No.
of trips per day
2 Earnings per Km / earning per trip
3 No. of working days in a month
4 Total monthly earnings 1 x 2 x 3 …..A
Expenses
5 Cost of Fuel per litre
6 Quantity of fuel required per month
7 Cost of fuel per month
8 Monthly Wages / batta for driver / cleaner etc
9 Maintenance
10 Repair
11 Insurance (annual premium / 12)
12 MV Tax (annual tax /12)
13 Interest on borrowings
14 Sustenance
15 Other expenses
Total Monthly Expenses (5 to 15)….B
16 Monthly surplus …. A - B
17 Monthly TL repayment
18 DSCR 16/17

Brief details of above workings:


ANNUAL REVIEW OF SME CREDIT CARD

PROPOSAL FOR REVIEW OF WC AND TERM LOAN SANCTIONED UNDER ‘SME


CREDIT CARD’ SCHEME.
1.Name of the unit
2 Constitution Proprietorship/Partnership/Private limited Company
3.Name of the
Proprietor/partners/
/directors
4. Business Address

Phone/Cell No.
5.Nature of activity
6. Date of Last
Sanction/review
7. IRAC Position as on
8. Present Position of Facility Limit DP O/S Irregularity if
Accounts as on date of any
review. CC
(Rs. In lakhs) TL
LC/BG
Total indebtedness
9. Conduct of WC a/c Annual Turn over estimated Rs.
(Rs. In lakhs) Annual Credit Summations in the account Rs.
(Atleast 50% should be routed in the account, other
wise sanctioning authority has to take a view on
continuation of facility)
Value of the account: Rs.
(Interest/Exchange/commission Booked)
Any Cross selling Products Booked :
(Give the name of the product booked)
10.a) Whether earlier
sanctioned terms complied
with?
b) Comments on non-
achievement of estimated
sales/profit.
c)No.of times the account
was irregular last year and
reasons.
11.Comments
(from risk angle)
(On other associates,
Competition, quality of
products, I&A comments,
CIBIL report for individuals
etc., and other relevant to
Risks. Bullet points only)

11. Recommendations
The Conduct of WC loan and Term loan has been reviewed and found satisfactory.
Recommended for continuation of Working Capital limit of Rs.

On the above terms and conditions as already set out in the original sanction dated—
(mention the date)

Appraised by Approved by
Signature
Name
Designation
Date

SME ADVANCES - CHECK LIST

1 Application Application
Bio Data form / Feed Back form
DD for Processing fee / Advocate fee / Valuation fee

2 Proprietor / Brief Profile


Partners / Photo
Guarantors Passport/EC ID Card/Driving Licence
Telephone Bill / Ration Card
PAN Card
IT Return for 2 years
Assets & Liabilities Statement

3 Unit Partnership Deed & Partnership Letter


Memorandum & Articles of Association
Certificate of Incorporation/Commencement
Board Resolution
Search Report from Registrar of Companies
SSI Registration
Panchayat Licence
PAN Card
IT Return for 2 years
ST Return for 2 years
Project Report
Power Allocation
Plan / Estimate / Invoices
Pollution Control Clearance
Lease Agreement for hired premises

4 Balance Sheet Actual - Past 2 years


Estimated - Current Year
Projected - Next Year
Projected - 6 years [for Term Loan]
CMA form

5 Associate Units Brief Profile


Balance Sheet
Opinion Report from Bankers

6 Renewal / Stock Statement


Enhancement Last inspection report
Term Loan Review
Copy of last sanction note
Confirmation of irregularity, if any

7 Take over Copy of sanction letter


Statement of account for 1 year
Credit Information Report

8 Property Original Title Deed


Prior Deeds
Land Tax Receipt
Building Tax Receipt
Possession Certificate
Location Certificate
Location Sketch
Non-RR & LA Certificate
EC for 30 years

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