Hand out on all types of

Star Personal Loan

Sl Product Page
No No
1 Hand out on Star Personal Loan 02
2 Hand out on Star Pensioner Loan 08
3 Hand out on Star Mitra Personal Loan (A Special Loan 13
Scheme for the Physically Challenged)
4 Hand out on Star Doctor Plus Loan 15
5 Hand out on Star Holiday Loan 18
6 Hand out on Financing Central Govt./State Govt. 23
employees under approved schemes.
7 Hand out on COVID 19 Pensioner Loan Scheme 25
8 Hand out on COVID 19 Personal Loan (CPL) Scheme 28
9 Hand out on BOI Star- Kavach Personal loan Scheme 31
** Hand out on Star Personal Loan

(BC – 115/03 dated 01 Apr 2021)

(1) Target Customers (Eligibility).

(a) Salaried (Permanent Employees only), professional and individuals
with high net worth / Existing Diamond/ Platinum customers.
(b) Employees of Proprietorship & Partnership concern will also be eligible
under the scheme subject to compliance of following.
(i) Prior approval from ZLCC.
(ii) The employer organisation is in existence for more than 5 years and
having satisfactory relationship with our Bank for at least two years.
(iii) The employer Organisation should have minimum strength of twenty
permanent employees on roll where Provident fund deduction is
mandatory.
(iv) Only the confirmed employees and drawing salary through our Bank
shall be considered.

(2) Age.
(a) Salaried Employees - Age at the end of repayment period not to
exceed retirement age of the employee.
(b) Professionals & Others - Age at the end of repayment period not to
exceed 70 years of age.

(3) Type of Advance.

(a) Demand / Term Loan / Overdraft (reducible as per repayment
schedule).
(b) Overdraft limit (not reducible as per repayment schedule) maximum
upto Rs. 5 lakhs to confirmed permanent employees of Central / State
Govt. / Reputed Corporates and PSUs, subject to
(i) Interest to be serviced on regular basis.
(ii) Salary account of the employee to be maintained with the Branch.
(iii) Account to be closed before employee's retirement / cessation in
service.
(iv) Branch / sanctioning authority satisfying themselves about repayment
capacity of proponent.

2
(c) Delegated authority to sanction the Overdraft limit (non- reducible as
per repayment schedule) - Minimum ZLCC.

(4) Quantum of Advance.

(a) Unsecured / Clean - Minimum Loan amount Rs. 0.25 Lakh and
Maximum Rs. 10.00 Lakhs.
(b) Secured - Minimum Loan amount Rs. 1.00 Lakh and Maximum Rs.
20.00 Lakhs.
(c) Minimum size of Loan apply for Urban and Metropolitan Branches.
(d) The sanctioning authority may permit loan amount below minimum
size of loan keeping in view the value of the customer / overall benefits to
the Bank. The purpose of prescribing minimum size of loan is from the
angle of cost-benefit analysis and not to lose valued customers / profitable
business.

(5) Quantum of Advance for approved schemes - In case of approved

schemes for financing clean / unsecured loans to a group of permanent /
confirmed employees of Govt. / PSU's / PSE's / Reputed Corporates /
Reputed Organizations etc., where salary deduction of EMI is available or
proper mechanism for deduction of EMI from the employee borrower's
salary is in place ZLCC and above can sanction individual clean /
unsecured loans upto Rs.20 lacs.

(6) Calculation of Quantum of Advance.

(a) Unsecured / Clean.
(i) Salaried persons - 15 times of monthly Net Emoluments.
(ii) Other individuals - 100% of Gross Average Annual Income as per last
three Income Tax Returns.
(b) Secured.
(i) Salaried persons - 30 times of monthly Gross Emoluments.
(ii) Other individuals - 200% of Gross Average Annual Income as per last
three Income Tax Returns
(c) While fixing the limit, it should be ensured that the net take home
pay/income (net of EMI of the proposed advance) should not be below the
stipulation as under.
(i) Monthly gross income is Rs. 5 lakhs and above – Minimum Net Take
Home will be 25%.

3
(ii) Monthly gross income is Rs. 1 lakh to Rs. 5 lakhs – Minimum Net Take
Home will be 30%.
(iii) Monthly gross income upto Rs. 1 lakhs – Minimum Net Take Home
will be 40%.

(7) Purpose.
(a) Unsecured /Clean Advance (No Bills & Receipts need be insisted for
clean advances).
(i) To meet marriage expenses of self / son / daughter or a near relative
dependant on the applicant.
(ii) To meet the expenses related to tours / excursions etc. undertaken /
to be undertaken by self / spouse / children within India or abroad.
(iii) Medical expenses incurred / to be incurred for self / spouse / son /
daughter or near relative dependent on the applicant.
(iv) Clean / unsecured loan can also be granted for following purposes.
(aa) Education of self / spouse / children / near relatives.
(ab) Repairs / renovation / extension of existing house / flat (where
Equitable Mortgage charge over the property cannot be created in favor
of the Bank and proponent has not raised loan against such property from
any Bank / F.I. / NBFC etc.).
(v) Any other Personal Expenses of bonafide nature as approved by the
Bank.
(b) Secured (Appropriate proof bills / receipts for expenses incurred to be
obtained in secured advances).
(i) Repayment of existing Housing Loans from other Banks / Finance
companies etc.
(ii) Repairs / Renovation / Extension of House Property.
(iii) Education of Self / Spouse / Children / Near relatives.
(iv) Purchase of Consumer Durables / Computers / Professional
Equipment’s, etc.

(8) Guarantee - Suitable third party guarantee should be taken in case of

clean loans having reasonable Net worth or repayment capacity in
commensurate with the quantum of advance.

(9) Margin.

4
(a) 10% for Secured Advances in consonance with requirement of
security, size of the limit, credit rating of customer, risk perception etc.
may be considered.
(b) No specific margin to be insisted upon for clean / unsecured advances.
However, loan amount not to exceed proposed expenditure / requirement.

(10) Repayment period.

(a) Maximum repayment period should not exceed 84 months in case of
secured or clean advances, commencing from subsequent month of first
disbursement.
(b) In case of salaried employees, the repayment period should be 84
months or residual service period whichever is earlier.
(c) For the purpose of holiday trips (within India / abroad), maximum
repayment period should not exceed 36 months.

(11) Rate of Interest Floating ROI, p.a, on monthly basis. (For new
advances).
(a) Fully secured - @RBLR+4.50% (presently 11.35%).
(b) Clean / Unsecured - @RBLR+5.50% (presently 12.35%).
(c) For Senior Citizens aged 60 years and above & for loans up to Rs.
50,000/ - @RBLR+3.50% (presently 10.35%).
(d) Secured under tie up arrangement: RBLR+4.50% (presently 11.35%).
(e) The concession of 0.50% p.a. in applicable rate of interest for women
beneficiary. Under no circumstances the ROI should be below RBLR.
(f) For interest concession in case of individual account, the account
holder to be woman and in case of joint account, all account holders to be
women.
(g) Authority for concession in ROI - Concession in ROI will be considered
by NBGLCC / GMLCC / EDLCC as per its delegation.

(12) Processing Charge (Exclusive of Service Tax).

(a) One time @2.00% of loan amount, Minimum Rs. 1000/- and Maximum
Rs.10,000/- (To be recovered at the time of documentation).
(b) For Senior citizens (60 years & above) - NIL Processing charges.

(13) Rating is applicable. borrower to get minimum 20 marks out of 50

marks.

5
(14) Amount of clean loan may be credited to the account of borrower but
for secured loans, direct payment to be made to seller / supplier.

(15) TAT - 3 working days of receipt of duly completed application.

(16) Statistical Information.

(a) Personal Loan Accounts to be opened under Finacle Code LA601 (for
Demand Loan) and LA 602 (for Term Loan).
(b) MIS Code as under to be incorporated under Free Code 3 in ACM-V:-
Clean Personal Loan — 402, Secured Personal Loan- 403, Sector Code
– 75.
(c) Employer code to be generated through EMM menu option in Finacle
and same is to be incorporated for all the loans for that particular
employer.

(17) Delegation of Powers to Sanction advance.

Scale Clean Secured Clean Approved

advance advance (Rs Overdraft Schemes
(Rs. In lacs) In lacs)
I 0.25 1.00 NIL 1.00
II 0.50 2.00 NIL 2.00
III 1.00 (Br) 3.00 (Br) NIL 3.00 (Br)
3.00 (RBC) 5.00 (RBC) 5.00 (RBC)
IV 3.00 (Br) 7.50 (Br) 1.00 (Br) 7.50 (Br)
5.00 10.00 2.00 10.00
(SZLCC and (SZLCC and (SZLCC and (SZLCC and
RBC) RBC) RBC) RBC)
V at Br/ 5.00 (Br) 10.00 (Br) 2.00 (Br) 10.00 (Br)
SZLCC & 7.00 15.00 4.00 15.00
above (SZLCC and (SZLCC and (SZLCC and (SZLCC and
RBC) RBC) RBC) RBC)
ZLCC 10.00 20.00 5.00 20.00
(Zones
headed by
AGM/DGM)

6
NBGLCC F.P. F.P. F.P. F.P.
GMLCC F.P. F.P. F.P. F.P.
EDLCC F.P. F.P. F.P. F.P.

(18) Documentation.
(a) Main documents for Unsecured Loans.
(i) D P Note.
(ii) Composite Document (L 516),
(iii) Bearer Letter (L 435),
(iv) Installment Letter (L 440),
(v) Guarantee Letter wherever stipulated,
(vi) ECS or Letter from Employer for deduction of EMIs.
(b) Main Documents for Secured Loans.
(i) D.P. Note
(ii) Composite Document (L-516).
(iii) CHA-1 (revised) for other than vehicles or CHA-2 (revised) for
vehicles.
(iv) Bearer Letter (L 435).
(v) Installment Letter
(vi) Composite Document (L- 515).
(vii) ECS or Letter from Employer for deduction of EMIs.
(viii) Letter of Guarantee wherever applicable.
(ix) Documents for creating charge on security.

7
** Hand out on Star Pensioner Loan

(BC – 115/03 dated 01 Apr 2021)

(1) Target Customers (Eligibility).

(a) Regular pensioners.
(b) Family pensioners drawing regular monthly pension through the
branch.
(c) Retired employees (other than dismissed / compulsorily retired) of our
Bank drawing pension from Bank.
(d) Pensioners who are getting pension through Treasury / Defense
Pension Disbursing Office (DPDO) directly to the credit of their Savings
Accounts with our branches are also eligible, subject to conditions.
(i) The Pensioners copy of Original PPO to be lodged with the Branch.
(ii) Duplicate / Triplicate of the stamped undertaking to be submitted to the
treasury / DPDO and acknowledged copy to be kept on branch records.

(2) Co-borrower - In case of regular pensioners, nominee/legal heir

entitled to family pension will be the co-borrower. In case of family
pensioner, legal heir will be co-borrower.

(3) Advance Type – Demand / Term Loan / Overdraft (reducible as per

repayment schedule).

(4) Purpose.
(a) Unsecured / Clean.
(i) To meet marriage expenses of Son / Daughter or a near relative
dependent on the applicant.
(ii) Medical expenses incurred / to be incurred for Self / Spouse / Son /
Daughter or near relative dependent on the applicant.
(iii) Education of self / spouse / children /near relatives.
(iv) Repairs / renovation / extension of existing house / flat (where
Equitable Mortgage charge over the property cannot be created in favor
of the Bank and the proponent has not raised loan against such property
from any Bank / FI / NBFC, etc.).
(v) Any other Personal Expenses of bona-fide nature as approved by the
Bank.

8
(b) Secured Advances.
(i) Repayment of existing Housing Loan from other Banks / Fls, etc.
(ii) Purchase of Consumer Durables / Computers / Professional
Equipments, etc.
(c) In case of clean / unsecured loan, an undertaking to be obtained from
the borrower stating that the loan has been utilized for the purpose
declared. In case of secured advances, appropriate proof / bills / receipts
for expenses incurred to be obtained.

(5) Quantum of Advance (Same limit for both secured 8, unsecured

loans).
(a) Regular Pensioner/ Family Pensioner where PPO is held at Nagpur
Govt Buisness Branch - Maximum Rs. 10,00,000/-.
(b) Pensioners who are getting pension through Treasury / Defense
Pension Disbursing Office directly to the credit of their Savings Account
with our Nagpur Govt Buisness Branch - Maximum Rs. 5,00,000/-.
(c) Family Pensioner who is getting pension through Treasury / Defense
Pension Disbursing Office – Maximum Rs. 3,00,000/-
(d) In case of family pensioners the loan tenure should not exceed the age
of ceasing / stopping of pension as per Pension Payment Order.

(6) Calculation of Quantum of Advance.

(a) Unsecured / Clean - 15 times of monthly Net Pension (Gross Income
Less Income Tax and EMI of other loan , if any).
(b) Secured - 20 times of monthly Net Pension (Income from other sources
can also be considered based on documentary evidence like ITR / regular
income reflecting in bank statement.
(c) Over Draft facility upto 3 months of net pension Max. Rs. 1.00 lakh can
be granted.
(d) Proponent / borrower may be sanctioned more than one loan (i.e. two
accounts — one for secured and other for unsecured / clean loan) under
the scheme, depending upon eligibility].

(7) Authority for deviation regarding calculation of ZLCC and above.

Quantum of Advance – ZLCC and above.

(8) Overdraft Facility to all Pensioners –

9
(a) Overdraft facility up to 3 months "Net Pension" Maximum Rs.
1,00,000/- can be granted. (Net Pension means amount being credited to
Pension Pensioners Account Less EMI for any loans granted at the
Branch).
(b) Pensioner who avails OD facility could also avail loan under Star
Pensioner Scheme, subject to combined limit (OD + Loan) not to exceed
maximum limits prescribed under Star Pensioner Loan Scheme.
(c) The facility is available to all pensioners maintaining Pension Payment
Account with the Branch (i.e. Pensioner should be drawing pension from
the branch i.e. branch should be holding PPO).

(9) Margin.
(a) No specific margin to be insisted upon for clean / unsecured advances.
(b) Suitable margin for Secured Advances in consonance with
requirement of security.

(10) Age - No specific age limit however,

(a) For loan over Rs. 1 lakh age at the end of repayment period not to
exceed 75 Years.
(b) For Repayment period beyond 75 years (Age) - Maximum loan limit
Rs. 1.00 lakh.

(11) Repayment.
(a) For Clean / Unsecured Advances – Repayment in 36 equated monthly
installments (EMIs) w.e.f. one month after first disbursement. Sanctioning
authority may consider longer repayment period up to 60 months at its
discretion.
(b) For Secured Advances - Maximum 60 EMIs w.e.f. one month after first
disbursement.
(c) In case of Overdraft accounts - Drawing Limit to be reduced as per
stipulated repayment schedule.

(12) Net take home Pension - The net take home pension after deduction
of loan installment should be at least 40% of the pension amount.

(13) Rate of Interest - (For clean / secured) - Floating ROI, p.a at monthly
rests – Clean / Unsecured / Secured – RBLR+2.50% (9.35%).

10
(14) Authority to consider / approve concession in rate of interest.
(a) Concession in ROI will be considered by NBGLCC or GMLCC or
EDLCC as per its delegation.
(b) The concession granted in ROI shall be valid for the entire tenure of
the loan, if there is no deterioration in the CIBIL personal score at the time
of review.

(15) Penal Interest - Penal Interest @ 2% per annum over and above
applicable rate would be leviable on the overdue amount / defaulted
installments

(16) Personal Guarantee - A third party guarantee including that of other

pensioners drawing regular pension through the branch can be taken.
Collateral security in lieu of the personal guarantee for the amount of loan
can also be accepted.

(17) Processing Charges (Exclusive of Service Tax) .

(a) No processing charge for Senior Citizens (60 years & above).
(b) For others — one time @ 2% of loan amount Minimum Rs.500/- and
Maximum Rs.2,000/-.

(18) Delegation.

Scale Clean /Secured advance

(Rs. In lakhs)
I 0.25
II 0.50
III (at Branch / RBC headed by Scale III) 1.00 (Br)
3.00 (RBC)
IV (at Branch / SZLCC where DZM is 3.00 (Br)
scale IV / RBC headed by scale IV) 5.00 (SZLCC and RBC)
V (at Branch / SZLCC where DZM is 5.00 (Br)
scale V / RBC headed by scale V) 7.00 (SZLCC and RBC)
ZLCC (Zones headed by AGM/DGM) 10.00
NBGLCC F.P.
GMLCC F.P.

11
EDLCC F.P.

(19) Credit Rating - Not applicable for Star Pensioner Loan Scheme.

(20) Document.
(a) Application cum Proposal (As per Star Personal Loan Scheme).
(b) D.P. Note, installment letter etc. (as per nature of advance).
(c) Statement of Assets & Liabilities in respect of applicants / guarantor(s)
as per Star Personal Loan Scheme.
(d) An undertaking from the pensioner that he / she will not shift pension
account to any other Bank / Branch during the currency of the loan without
NOC from the Bank. This letter should be obtained in duplicate and
original forwarded to the concerned Treasury Office / Employer for
registration/noting, Acknowledge copy to be kept on record.
(e) Mandate letter to debit the S/B or other deposit accounts into which
pension is credited, for recovery of the loan installment / amount.
(f) A NOC from legal heirs entitled for family pension for recovery of loan
installment / amount from their account in which family pension amount is
credited, if necessary.
(g) L —515 and L-516.
(h) Guarantee Letter, if applicable.
(j) Charge on Principal / Collateral Security proposed (Hypothecation /
pledge / lien etc.) Equitable / Legal mortgage of the property, wherever
applicable.

(21) Post Sanction Inspection - For Housing Purpose — Yearly. For others
– Waived.

12
** Hand out on Star Mitra Personal Loan (A Special Loan Scheme for
the Physically Challenged)

(BC – 115/03 dated 01 Apr 2021)

(1) Objective - To help Physically Challenged persons to function

independently.

(2) Purpose - To purchase durable and sophisticated aids / appliances that

promote their physical and social rehabilitation.

(3) Eligibility - All Physically Challenged Individuals — both salaried and self-
employed, All Physically Challenged Minors through their Parents/Legal
Guardians. (No advances to middle-men and NGOs).

(4) KYC/Due Diligence - Existing instructions under Star Personal Loan

scheme on KYC/Due Diligence/Bulk finance, etc., to be strictly complied
with.

(5) Type of Advance - Demand / Term Loan – Secured.

(6) Amount.
(a) Maximum Rs. 2.00 lakhs for Salaried.
(b) Maximum Rs. 1.00 lakh for professionals and self-employed.

(7) Eligible Amount.

(a) 15 times of net salary for salaried persons and 100% of net annual
income as per latest Income Tax Return for Self-Employed / Professionals.
(b) Net take home income should not be less than 40% after availing this
loan. (In case of Minors, the income of the Parents / Legal Guardians would
be the deciding criteria for eligibility).

(8) Margin - 10% (May be waived in deserving cases, as also in DRI cases.
Discretion with the Sanctioning Authority).

(9) Repayment - 12 to 60 months, commencing one month after full

disbursement / three months after first disbursement, whichever is earlier.

13
(10) Rate of Interest.
(a) At 1% above Base Rate/MCLR (Fixed Rate during tenure of loan,
compounded monthly, on daily reducing balance basis).
(b) For those eligible under DRI category (As per DRI Norms on eligibility,
purpose, quantum of advance etc.,), Interest as applicable to DRI Advances
(presently 4% p.a., simple interest on daily reducing balance basis).

(11) Security - Hypothecation of the Equipment purchased out of Bank

Finance.

(12) Insurance - Waived. However, Borrower may be advised to obtain

insurance at his own cost.

(13) Processing Charges - Waived.

(14) Delegation - As per powers for sanctioning secured Star Personal Loan.

(15) Other Terms and Conditions.

(a) Doctor’s Certificate to be obtained from the borrower regarding the extent
of handicap and the need for the equipment.
(b) Quotation / Invoice in respect of the equipment to be purchased.
(c) Stamped receipt to be submitted after purchase of the equipment.
(d) Staff members also permitted (other than those who are under
suspension) from those branches where the salary account of the employee
is maintained. Loan to be repaid before retirement / recovered from terminal
dues in case of cessation from service.

(16) MIS Codes for opening of Loan Accounts: To be entered in ACM - V

option of Finacle while opening an account.
(a) Borrower Category Code – 75
(b) Description - Star Mitra Personal Loan.
(c) Free Code - 3 - 419.
(d) Purpose of Advance – 95019.
(e) Industry Type Code 211.

14
** Hand out on Star Doctor Plus Loan

(BC – 115/03 dated 01 Apr 2021)

(1) Purpose - Any approved purpose — except for investment in shares

and for speculative purpose. Suitable declaration to be obtained in this
regard.

(2) Eligibility - Qualified registered medical practitioner with minimum 3

years' experience in any branch of medical science recognized by MCl /
DCI / other statutory /regulatory authorities to practice in India.

(3) Constitution of Borrower - Individual / Joint / Proprietorship

(4) Age.
(a) 25-75 Years.
(b) Outer age is the age by which the advance facility should be repaid in
full.
(c) Authority for deviation - SZLCC and above.

(5) Loan Limit - Rs. 25 Lakhs.

(6) Calculation of Quantum of Loan.

(a) For salaried - 36 times of gross monthly salary.
(b) For Others - Three times of Gross Annual Income as per ITRs. Income
as per Income Tax Return Depreciation (as per audited financial
statements) if any could be added back for arriving at the eligible loan
amount. In case the Doctor is a partner in a partnership firm proportionate
share of Depreciation could be added back.

(7) Security.
(a) For limit up to Rs.5 Lakhs - No collateral security.
(b) For Loan over Rs. 5 Lakhs and up to Rs. 10 Lakhs - Third Party
Guarantee of Adequate Value. One Person cannot guarantee more than
one loan account.
(c) For Loan over Rs. 10 Lakhs up to Rs. 25 Lakhs - Equivalent collateral
security for loan over Rs. 10 Lakhs.

15
(8) Type of Advance / Facility.
(a) Demand / Term Loan.
(b) Overdraft (Reducible by Monthly equated installments).
(c) Overdraft (Non-Reducible — Maximum limit Rs. 20 lakhs), provided
the account is secured by collateral security and should not have any cash
credit / overdraft limits with any other bank.

(9) Margin – NIL.

(10) Repayment Period.

(a) For Loan / Reducible Overdraft - 84 months (Repayment to commence
from next month from 1st disbursement).
(b) For Overdraft - Repayment by reducing balance to be fixed on
reaching the age of 68 years to ensure closure of loan account before
completion of 75 years.

(11) Take Home Pay (Including EMI for proposed Loan).

(a) For gross monthly income up to Rs. 1 lakh – Minimum 40%.
(b) For gross monthly income from Rs. 1 lakh to Rs. 5 lakhs - Minimum
30%.
(c) For gross monthly income over Rs. 5 lakhs - Minimum 25%.

(12) Rate of interest.

(a) Fully Secured - RBLR+2.00% (8.85%).
(b) Clean / Unsecured - RBLR+3.00% (9.85%).

(13) Proposal Processing Charge - 50% of charge as applicable to the

public.

(14) MIS Code in Finacle -Free Code 3 – 364.

(15) Delegation

Scale Clean advance (Rs. Overdraft (non-

In lakhs) reducible) (Rs. In
lakhs)

16
I 1.00 NIL
II 2.00 NIL
III (at Branch / RBC 3.00 (Br) NIL
headed by Scale III) 5.00 (RBC)
IV (at Branch / SZLCC 7.50 (Br) 5.00 (Br)
where DZM is scale IV / 10.00 (SZLCC and 7.50 (SZLCC and
RBC headed by scale IV) RBC) RBC)
V (at Branch / SZLCC 15.00 (Br) 10.00 (Br)
where DZM is scale V / 20.00 (SZLCC and 15.00 (SZLCC and
RBC headed by scale V) RBC) RBC)
ZLCC (Zones headed by 25.00 20.00
AGM/DGM)
NBGLCC F.P.
GMLCC F.P.
EDLCC F.P.

(16) Other Provisions including KYC & Due Diligence - All other provisions
as per star personal loan scheme.

(17) TAT - 3 working days from the date of receipt of completed

application.

17
** Hand out on Star Holiday Loan

(BC – 115/03 dated 01 Apr 2021)

(1) Target customers.

(a) Salaried employees / Professionals / Self-employed / People engaged
in business / Individuals with high net worth / Agriculturists / Pensioners.
(b) Staff members.
(c) Regular pensioners drawing regular monthly pension through the
branch. The pension payment must be through the branch disbursing the
loan. The maximum age of the pensioner while considering the loan
should not exceed 65 years. The sanctioning authority may waive the
upper age limit of 65 years, at their discretion and after assessment of the
dependability on the co-borrower / guarantor for repayment of the loan
amount.

(2) Type of Advance - Demand Loan (reducible as per repayment

schedule).

(3) Quantum of Advance.

(a) Maximum Rs. 2 lakhs (Clean).
(b) Maximum Rs. 5 lakhs (In case liquid collateral security like TDRs,
NSCs, IVPs, KVPs, LIC policy (surrender value) etc. is offered at least
equal to 50% of loan amount sanctioned).
(c) Maximum Rs. 10 lakhs (In case liquid collateral security like TDRs,
NSCs, IVPs, KVPs, LIC policy (surrender value) etc. is offered at least
equal to 100% of loan amount sanctioned).
(d) Pensioners - Maximum Rs. 1 Iakh.
(e) Subject to
(i) 10 times of monthly Net Emoluments (take home salary) in case of
Salaried Employees.
(ii) 50 % of Gross Annual Income as per last Income Tax Return for others
(other than salaried people & pensioners).
(iii) Pensioners - 10 times of monthly pension (maximum loan amount -
Rs. one lakh).

(4) Net Take Home.

18
(a) While fixing the limit, it should be ensured that the net take home pay
/ income (net of EMI of the proposed advance) is not less than 40% of
gross monthly income of the applicant's.
(b) Pensioners - The net take home pension after deduction of loan
installment should be at least 40% of the pension amount.
(c) In case of joint borrowers, their joint income may be taken into
consideration for assessing the repayment capacity and quantum of loan.
(d) Holiday loan can be extended to Borrowers under other Retail Loan,
including Star Personal Loan Scheme, subject to satisfactory conduct of
existing accounts and satisfaction of all norms of the scheme including
take home pay (NTHP).

(5) Purpose - To meet the expenses (like airfare / Train / Bus charges,
expenses for accommodation, sightseeing, etc.) for going for pilgrimage /
tours / excursions etc. Undertaken / to be undertaken by Self / spouse /
children / parents / family members / close relatives of proponent within
India or abroad.
(a) Branches should obtain a declaration from the applicant stating the
purpose for which the loan is required and an undertaking by the borrower
that the advance will be utilised for the purpose granted and a purpose-
wise break-up of the amount to be utilised may be mentioned therein.
(b) Branches should exercise care in granting such unsecured / clean
loans and to take into account income level of proponent, repayment
capacity, sources of repayment such as regular salary, professional /
business income etc. Wherever, the loan sanctioned is salary linked on
the basis of tie- up arrangement with the employer, the financial strength
of the company (employer) is to be enquired and commented upon in the
proposal.

(6) Co- borrower - In case of regular pensioners, nominee/ legal heir

entitled to family pension is to be made the co-borrower.

(7) Personal Guarantee.

(a) Pensioners - A third party guarantee including that of other pensioners
drawing regular pension through the branch can be taken. Collateral
security in lieu of the personal guarantee can also be accepted.

19
(b) Other than Pensioners - A third party guarantee can be taken, if
considered necessary by the sanctioning authority, depending upon the
merits of the case. Collateral security in lieu of personal guarantee can
also be accepted.

(8) Margin - No specific margin is to be insisted upon. However, loan

amount should not exceed proposed expenditure / requirement.

(9) Repayment - Maximum in 24 EMIs (Equated monthly installments)

w.e.f one month after first disbursement from loan account. In special /
exceptional case, up to 36 EMIs.

(10) Loan / EMI Recovery – Loan / EMI Recovery - [Procedure for

recovery of EMI to be formalized at the time of documentation itself.
(a) For tie-up arrangements with employer, letter of authority (2 copies) to
employer for recovering installments from salary. OR
(ii) SI (standing instruction) for those maintaining salary accounts or
having satisfactorily conducted operative account with the Branch. OR
(iii) ECS debit mandate forms (RBI as well as NPCI format) three originals.
(iv) Obtention of 2/3 CTS 2010 standard compliant cheque as security
Post Dated Cheques (PDCs) to be used strictly in case bank decides to
initiate action under Section 138 of the NI Act.

(11) Rate of Interest (R01)- Floating ROI, p.a, at monthly rests.

(a) Fully secured - @RBLR+4.50% (presently 11.35%).
(b) Clean / Unsecured - @RBLR+5.50% (presently 12.35%).
(c) For Senior Citizens aged 60 years and above & for loans up to Rs.
50,000/ - @RBLR+3.50% (presently 10.35%).
(d) Secured under tie up arrangement: RBLR+4.50% (presently 11.35%).
(e) ROI on Clean / unsecured loans for staff members - ROI shall be same
as applicable to secured loans, subject
(i) There is sufficient unencumbered balance in Terminal benefit of the
staff member to cover such proposed loan before extending reduced
interest rate.
(ii) In addition to usual security documents, additional security documents
such as L-496 and L-497 (in duplicate).
(iii) Authority letter addressed to Trustees of PF / Gratuity - to be obtained.

20
(12) Penal Interest - Penal interest @2% p.a. is to be levied on the
overdue amount (i.e. over drawings due to application of interest, non-
payment of installment etc.) for actual period of over drawings.

(13) Processing / Handling Charges (Exclusive of service tax).

(a) One time @2.00% of the loan amount. Minimum Rs.1, 000/- and
maximum Rs.10, 000/-.
(b) Pensioners - One time @2.00% of loan amount — Minimum Rs.500/-
and Maximum Rs. 2,000/-.
(c) No Processing charges for Senior Citizens (60 years & above).

(13) Authority to consider deviations from the Scheme - NBG-LCC is

authorized to consider on merits requests which are not strictly in
conformity with the laid down norms of the scheme (including repayment
period, basis for calculation of quantum of advance, etc.).

(14) Finacle Code - The accounts are to be opened under Finacle Code
LA 603 (Star Holiday Loan-DL) and LA 604 (Star Holiday Loan-TL). MIS
Code — 411 under Free Code 3 in ACM-V option in Finacle.

(15) Delegation of Powers to Sanction advance.

Scale Clean Partially Secured Fully Secured

advance advance (Rs In advance (Rs In
(Rs. In lacs) lacs) lacs)
I 0.25 0.50 2.00
II 0.50 1.00 4.00
III 1.00 2.00 6.00
IV at Branch 2.00 4.00 10.00
V at Br/ SZLCC 2.00 5.00 10.00
to GMLCC
EDLCC and F.P. F.P. F.P.
above

(16) Documents.
(a) Demand Promissory Note (For Demand Loan).

21
(b) Bearer Letter (L-435).
(c) Instalment Letter (L-440).
(d) Guarantee Letter, wherever applicable O/D-194.
(e) L-515 as per Br. Cir. No. 94/186.
(f) L-516 as per Br. Cir. No. 97/114 13.11.2003.
(g) Irrevocable authority letter addressed to Employer for deduction of
instalment / interest from the Salary and remitting the same to Bank
(wherever applicable).
(h) Post-dated cheques wherever possible.
(j) Charge on collateral security as proposed / stipulated (pledge / lien etc.)
(k) Letter from customer authorizing bank to debit admissible service
charges / interest etc.

22
** Hand out on Financing Central Govt./State Govt. employees under
approved schemes.

(BC – 115/03 dated 01 Apr 2021)

(1) Eligible Borrowers.

(a) Group of permanent /confirmed employees of Central Govt. / State
Govt. PSU's / PSE's of Central / State Government (earning profit for last
3 years), Teachers of Government Colleges / Schools and staff of
regulatory bodies such as RBI / SEBI / IRDA , etc.
(b) Employees of corporate, reputed organizations as per personal loan
scheme not covered under this scheme.

(2) Scheme Coverage - Schemes duly approved by ZLCC and above.

(3) Scheme Requirement.

(a) Salary deduction of EMI is available or proper mechanism for
deduction of EMI from the employee borrower's salary is in place.
(i) Wherever feasible MOU to be entered into with the authorized official
of the Department / Organization for deduction of EMI from salary and
remittance to bank on regular basis.
(ii) In the absence of MOU, details of scheme approved for the employees
of the Department / Organization to be intimated to the Head of the
Department / Organization and acknowledged copy to be kept on records.
(iii) Authorization from the employee to debit EMI from the salary account
maintained with the Bank / Branch.
(iv) Salary account to be maintained with the Bank / Branch.
(v) Undertaking from the employee to obtain NOC from the loan disbursing
Branch before closure of salary account or transfer of salary account to
another bank / branch (combined Draft for ii, iii and v approved by ZO
Legal Department to be provided in each case).
(vi) Personal guarantee of another employee of the organization, one
guarantor not to guarantee more than 2 accounts.
(b) This modification is applicable for the above special scheme.
Deviation, if any to be approved by NBGLCC.

(4) Quantum of Loan - Maximum Rs. 20 Iakhs.

23
(5) Calculation of Quantum of Loan.
(a) Clean - 15 times of monthly net emoluments.
(b) Secured - 30 Times of monthly gross emoluments.

(6) Net Take home pay.

(i) Monthly gross income is Rs. 5 lakhs and above – Minimum Net Take
Home will be 25%.
(ii) Monthly gross income is Rs. 1 lakh to Rs. 5 lakhs – Minimum Net Take
Home will be 30%.
(iii) Monthly gross income upto Rs. 1 lakh – Minimum Net Take Home will
be 40%.

(7) Statistical Information / Codes - Employer code to be generated

through EMM menu option in finacle and same is to be incorporated for
all the loans for particular employer.

(8) Delegation.

Scale Clean /Secured advance (Rs. In

lakhs)
I 2.00
II 3.00
III (at Branch / RBC headed by 5.00 (Br)
Scale III) 7.50 (RBC)
IV (at Branch / SZLCC where 7.50 (Br)
DZM is scale IV / RBC headed 10.00 (SZLCC and RBC)
by scale IV)
V (at Branch / SZLCC where 10.00 (Br)
DZM is scale V / RBC headed 12.00 (SZLCC and RBC)
by scale V)
ZLCC (Zones headed by 15.00
AGM/DGM)
NBGLCC 20.00
GMLCC F.P.
EDLCC F.P.

24
** Hand out on COVID 19 Pensioner Loan Scheme.

(BC – 115/58 dated 20 May 2021).

(1) Facility type - Demand loan / Term loan.

(2) Target customers.

(a) Regular Pensioners.
(b) Family Pensioners.
(c) Retired Employees of our Bank drawing pension from our Bank (Other
than Dismissed staff).
(d) Pensioners / Family pensioners who are drawing pension through
Treasury / Defense Pension disbursing office (DPDO) wherein the
pension is directly credited to their SB accounts with our branches subject
to.
(i) The original PPO should be lodged / held with / at our Bank.
(ii) Obtention of Stamped Undertaking in case of second pension loan.

(3) Co-borrower.
(a) In case of Regular Pensioners – Nominee / Legal heir to be the co-
borrower.
(b) Family pensioner - Legal heirs to be the co-borrower.
(c) Staff Pensioners - Nominee of PF and Gratuity / Legal heirs should be
the co borrower.

(4) Validity of scheme - Scheme will be in force up to 31-03-2022 and

disbursement on or before 07.04.2022.

(5) Purpose - For any bonafide purpose.

(6) Quantum Advance – 10 times of last drawn pension subject to a

maximum of
(a) Regular pensioner — Rs. 5.00 lakhs
(b) Family pensioner — Rs. 3.00 lakhs.
(c) Pensioner / Family pensioner getting pension through Treasury /
DPDO Rs. 5.00 lakhs.

25
(7) NTHP - Minimum 35%.

(8) Margin – Nil.

(9) Age - The age at the end of repayment period should not exceed 75
years.

(10) Rate of interest – RBLR.

(11) Personal Guarantee - Personal guarantee of another pensioner

drawing' pension through our Bank or permanent salaried employees
drawing salary through our Bank is to be obtained.

(12) Personal Rating in CAPS - Not applicable.

(13) Deviation - No Deviation to be allowed.

(14) Security – Clean.

(15) Documentation - As per Star Pensioner loan scheme.

(a) Application as per Star Pensioner Loan Scheme.
(b) DP Note.
(c) Undertaking / NOC / Mandate letter as per Star Pensioner loan scheme
115/03 dated 01 Apr 2021.
(d) L515, L516.
(e) Undertaking that the loan will be utilized for declared purpose only.

(16) Pre-sanction inspection – Waived.

(17) Processing fees – Nil.

(18) Repayment.
(a) 36 / 60 months, no gestation is to be allowed.
(b) Note - In case of family pensioners the loan tenure should not exceed
the age of ceasing / stopping of pension as per PPO (pension payment
order).

26
(19) Disbursement - In One go and the disbursed loan amount to be
credited to the account where the pension amount gets credited regularly.

(20) Scheme code.

(a) For demand loan – LA 601.
(b) For Term loan – LA 602.

(21) MIS codes.

(a) Sector code – 75.
(b) Industry type – 211.
(c) Free code-3 – 398.

(22) Review of Account - Credit Inspection.

(23) Delegation.
(a) Scale I - Rs. 0.75 Lakhs.
(b) Scale II - Rs. 1.50 Lakhs.
(c) Scale III - Rs. 3.00 Lakhs.
(d) Scale IV and V - Rs. 5.00 Lakhs.

(24) Processing through CAPS - The proposal should be processed

through CAPS except VSAT branches.

(25) CPA - Outside the purview of CPA.

(26) Others.
(a) Satisfactory CIBIL report.
(b) Note - Delegation in case of sanction of COVID-19 pensioner loan, as
second pensioner loan; Outstanding balance in existing pensioner loan +
proposed COVID-19 pensioner loan should not exceed the delegation
assigned in the proposed scheme.

27
** Hand out on COVID 19 Personal Loan (CPL) Scheme.

(BC – 115/59 dated 20 May 2021).

(1) Facility type - Demand loan / Term loan.

(2) Validity of scheme - Scheme will be valid upto 31-03-2022 and

disbursement on or before 07-04-2022.

(3) Purpose - To meet consumption needs and also medical expenses.

(4) Eligibility.
(a) Existing standard housing loan customers (Both salaried and self-
employed) and whose accounts are not restructured under Resolution
Framework.
(b) Existing standard personal loan (Including COVID 19 Personal loan)
customers (Both salaried and self-employed) and whose accounts are not
restructured under Resolution Framework.
(c) Customers (individuals only) who have availed loan under Bank's
scheme "Loan against Property" and whose accounts are standard
(excluding SMA2 accounts) with minimum satisfactory repayment history
of one year and whose accounts are not restructured under Resolution
Framework.
(d) Permanent salaried employees drawing salary through our Bank
whose salary accounts have been conducted satisfactorily at least for a
period of minimum 6 months and with CIBIL personal score of 675 and
above.
(e) Regular staff of our Bank (excluding staff who are on probation and
staff against whom disciplinary action has been initiated / contemplated /
pending) as eligible customers under the scheme subject to NTHP of
25%.

(5) Loan amount.

(a) For salaried - 10 times of last drawn gross salary; Max - Rs. 10.00
Lakhs.
(b) For existing housing loan / Personal / LAP customers / Staff.

28
(i) For salaried - 10 times of last drawn gross salary; Max - Rs. 10.00
Lakhs.
(ii) For self- employed - 5 times of monthly income based on the latest
ITR; Max - Rs. 5.00 Lakhs.

(6) NTHP - Minimum 25% irrespective of income category of the borrower.

(7) Margin – Nil.

(8) Rate of interest – RBLR.

(9) Security.
(a) Clean.
(b) Note - Branches need not extend the mortgage available in existing
Home / LAP loans to the proposed Personal loan. However, a stamped
(Format as devised by Head Office Legal department will be advised
separately) undertaking to be obtained from the borrower that the
mortgage will be extended as and when insisted by Bank.

(10) Documentation - For Demand / Term Loan, as per Star Personal loan
scheme.
(a) Request letter from the customer.
(b) DP Note.
(c) L515, L516.
(d) OD194, if applicable.
(e) Undertakings / letters as per star personal loan scheme.
(f) Unstamped declarations from nominee of PF / NPS and Gratuity (in
case of staff).

(11) Processing fees – Nil.

(12) Repayment - For Demand / Term Loan – 36 / 60 months including

moratorium period of 6 months.

(13) Disbursement - In One go and the amount can be credited to the SB

account (Salary account in case of salary account holder) or operative
account of the borrower.

29
(14) Scheme code –
(a) For demand loan – LA 601.
(b) For Term loan – LA 602.

(15) MIS codes.

(a) Sector code - 75.
(b) Industry type - 211.
(c) Free code-3.
(i) 395 - Salaried Linked COVID 19 PL.
(ii) 399 - Home Loan linked COVID 19 PL.
(iii) 400 - Personal Loan linked COVID 19 PL.
(iv) 457 - COVID 19 Personal Loan – LAP.
(v) 458 - COVID 19 Personal Loan – Staff.

(16) Delegation - As per Star Personal loan scheme (BC - 115/03 dated
01-04-2021 - As applicable to Secured advance).
(a) Scale I - Rs. 0.50 Lakhs.
(b) Scale II - Rs. 1.00 Lakh.
(c) Scale Ill - Rs. 3.00 Lakhs.
(d) Scale IV - Rs. 7.50 Lakhs.
(e) Scale V and above - Rs. 10.00 Lakhs.
(f) For Staff - Delegated Authority - SZLCC.
(g) Note - The delegated authority can sanction two or three personal
loans (including proposed one) within the maximum amount of ceiling
mentioned against each scale, as above and subject to stipulated take
home pay.

(17) Processing through CAPS - The proposal should be processed

through CAPS.

(18) CPA - Outside the purview of CPA.

(19) Others.
(a) Satisfactory CIBIL Report.
(b) Rating exercise - Applicants scoring minimum 20 marks out of 53, as
per revised rating sheet.

30
** Hand out on BOI Star- Kavach Personal loan Scheme.

(BC – 115/60 dated 20 May 2021).

(1) Facility type – Demand / Term loan.

(2) Validity of scheme - Scheme will be in force up to 31-03-2022 and

initial disbursement on or before 07.04.2022.

(3) Constitution – Individuals / Proprietorship Firms.

(4) Co- applicant (In case the applicant is a COVID patient and applies for
loan for medical treatment for self).
(a) Salaried - PF Nominee.
(b) Others - other income earning member of the family.

(5) Age.
(a) Salaried - Age at the end of repayment period not to exceed retirement
age of the employee.
(b) Doctors / Others - Age at the end of repayment period not to exceed
65 years.

(6) Purpose - To meet medical expenses (including pre and post

hospitalization expenses) for self and / or close relatives.

(7) Eligibility.
(a) Existing Bank of India Customers with satisfactorily conducted
saving/current account with the bank for past 24 months.
AND
Maintaining Average Quarterly Balance of Rs. 25,000 / Rs. 50,000 for
saving and current respectively (For Non - salaried customers only).
(b) Existing borrowers of our Bank (both salaried and non-salaried)
enjoying credit facilities with satisfactory conduct (Excluding SMA and
restructured accounts).
(c) Salary account holders drawing salary through our Bank for last 12
months.

31
(d) Qualified Medical Practitioners with minimum 3 years of experience
and two years of satisfactorily conducted SB / CD account (No
requirement of AQB), with our Bank.
(e) Note - In eligible accounts.
(i) The customers who have already availed loans under COVID 19
Personal loan scheme or COVID 19 pensioner Loan scheme and whose
loans are still outstanding as on the date of application.
(ii) The customers whose loan accounts are restructured under Resolution
plan 1.0 or Resolution Plan 2.0 or SME Restructuring or any other
restructuring scheme.
(iii) The customers who have availed GECL or any additional loan under
restructuring.

(8) Loan amount.

(a) For salaried - 10 times of last drawn gross salary. Minimum - Rs.
25000.00 and Maximum - Rs. 5.00 Lakhs.
(b) For Self Employed / Proprietor - 10 times of monthly income based on
the latest ITR. Minimum - Rs. 25000.00 and Maximum - Rs. 5.00 Lakhs.

(9) NTHP.
(a) Gross monthly income up to Rs. 1.00 lakh is 40%.
(b) Gross monthly income over Rs. 1.00 lakh and up to Rs. 5.00 lakh is
30%.
(c) Gross monthly income above Rs. 5.00 lakh is 25%.

(10) Margin – Nil.

(11) Rate of interest - RBLR + CRP of 1.65%, presently 8.50% p.a. floating
with monthly rests.

(12) Security – Clean.

(13) Guarantee (in case of other than salaried persons) - Suitable third-
party guarantee of a person having adequate net worth or commensurate
with repaying capacity of borrower.

(14) Documentation (For both Demand and Term loan).

32
(a) Request letter from the customer.
(b) DP Note.
(c) Bearer letter.
(d) L515, L516.
(e) OD194, if applicable.
(f) Undertakings / letters as per star personal loan scheme.
(g) Self-declaration from the borrower / Co borrower / spouse / family
members with regards COVID related treatment.

(15) Processing fees – Nil.

(16) Repayment.
(a) For Demand Loan - 36 months including moratorium period of 6
months.
(b) For term loan - Maximum 5 years including moratorium period of 3
months.

(17) CPA - It will be outside the purview of CPA.

(18) Disbursement - In One go and the amount can be credited to the SB

account / operative account of the borrower.

(19) Scheme code.

(a) For demand loan – LA 601.
(b) For Term loan - LA 602.

(20) MIS codes - New Product type will be allotted in CAPS Module.
(a) Sector code - 75.
(b) Industry type - 211.
(c) Free code-3 - 491.

(21) Delegation - As per Star Personal loan scheme (BC - 115/03 dated
01-04-2021 as applicable to Secured advance).
(a) Scale I - Rs. 1.00 Lakh.
(b) Scale II - Rs. 2.00 Lakhs.
(c) Scale III - Rs. 3.00 Lakhs.
(d) Scale IV and above - Rs. 5.00 Lakhs.

33
(e) Note.
(i) The amount exceeding the delegation of Branches up to Scale III, to be
sanctioned by SZLCC.
(ii) The RBCs are not to process the loans under this scheme.

(22) Processing through CAPS - The proposal to be processed through

CAPS.

(23) Others.
(a) Positive RT-PCR report for self and / or close relatives.
(b) Satisfactory CIBIL Report.
(c) Rating exercise - Applicants scoring minimum 20 marks out of 53 as
per revised rating sheet.
(d) Standing Instructions / ECS (NACH) is mandatory.
(e) If the applicant himself is COIVID patient and applies for the loan
before or after admitting in to hospital, the loan can be disbursed on
reimbursement basis.

34
35