Retail Lending Policy

R A Wing IG No.
: IC/606/2023
Retail Products Section Date : 05/08/2023
Head Office, Bengaluru Index : Advances
Sub Index : Retail
Regulator : NA
For Internal use

Only
Subject - Retail Lending Policy of the Bank for the FY 2023-24 – updated till 31.07.2023
The “Retail Lending Policy” is put in place with an objective to have all the guidelines in one nut
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shell which is in conjunction with Credit Policy, Credit Risk Management Policy and Delegation of
Powers issued by Risk Management Wing.
Review of Retail Lending Policy shall be done annually. Further, modifications are effected to the
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policy for complying the Regulatory Guidelines, Directions from various Departments, feedback
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from Circles and Wings and also considering the strategy of the market etc.
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The latest consolidated Retail Lending Policy updated till 31.03.2023 was conveyed vide HO Cir
IC/288/2023 dt.31.03.2023.
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Further, Additions / Modifications to the policy guidelines from 01/04/2023 have been conveyed
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vide HO Circulars IC/316/2023 dated 06.04.2023, IC/326/2023 dated 11.04.2023, IC/339/2023

dated 13.04.2023, IC/384/2023 dated 21.04.2023, IC/425/2023 dated 08.05.2023, IC/432/2023
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dated 09.06.2023,IC/488/2023 dated 13.06.2023, IC/504/2023 dated 23.06.2023, IC/529/2023
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dated 01.07.2023 & IC/530/2023 dated 01.07.2023. This Retail Lending Policy document is in
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consolidation of all other guidelines and is updated till 31.07.2023.

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The policy is covering only the broad policy guidelines and branches/offices shall refer to the
related circulars/manuals and other communications issued from time to time for operational/
procedural guidelines.
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Branches/Offices to note that any further modifications/additions would be advised through

circulars/other communications from time to time and the same shall form part of this policy.
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For any clarifications on the policy matters, the concerned RAH/RO/Circle, shall take up with us
in concurrence with the Circle Head. Branches/offices to take note of the above for compliance.
R ANURADHA
GENERAL MANAGER
PM
RETAIL LENDING POLICY
FOR FY 2023-24
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(Updated till 31.07.2023)
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RETAIL ASSETS WING

HEAD OFFICE
112, J.C.ROAD
BANGALORE -560002
Page 1 of 212
Policy on RETAIL LENDING – for FY 2023-24
INDEX
SL CONTENTS SUBJECT PAGE

NO NO
1 INTRODUCTION 3
2 CHAPTER-I: GENERAL GUIDELINES 4-25
3 CHAPTER-II POLICY ASPECTS ON RETAIL LENDING 26-45
4 CHAPTER-III GIST ON PRODUCTS UNDER RETAIL LENDING 46-53
5 CHAPTER-IV ANNEXURE – PRODUCT DETAILS 54-212
This policy is in conjunction with Manual of Instructions on Retail Lending Schemes, Education
Loan, DIR & other schemes, Credit Risk Management Policy and Delegation of Powers issued
by Risk Management Wing, Head Office Bangalore. Further, the policy will be updated on
quarterly basis and the policy modifications, which are issued from time to time by RM Wing,
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Head Office, are also to be adhered to.
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Page 2 of 212
Introduction
“Customer Service is Be-all and End–all”
Retail Banking is extremely important and topical. Across the globe, Retail lending has been a
spectacular innovation in the commercial banking sector in the last two decades or so. The
growth in retail lending is attributable to rapid advances in information technology, the
evolving macroeconomic environment, financial market reform, and several micro-level
demand and supply side factors. Retail banking has been decisively transformed into a seller’s
market to buyer’s market. Retail banking has become in-thing in today’s commercial banking.
Retail Banking, is however quite broad in nature –it refers to the dealing of commercial banks
with individual customers, both on liabilities side and assets side of the Balance Sheet. Fixed,
Current /Savings accounts on the liabilities side, and loans (personal, housing, vehicle,
educational etc.,) on the assets side are the more important products offered by banks.
Related ancillary services include credit cards, depository services, etc.,
Retail Banking in India is not a new phenomenon. It has always been there in India and our
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Bank for ages in various forms. For the last few years it has become synonymous with
mainstream banking and experienced surge in Retail Banking, so is our Bank. Typical products
offered are Housing loans, personal loans, vehicle loans, educational loans, consumption loans
for purchase of durables and credit cards. The loans are marketed under attractive brand
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names to differentiate the products offered by different banks.
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Retail Banking has immense opportunities in a growing economy like India and Banks started
using Retail Banking as a growth trigger. Growing economic prosperity and consequent increase
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in purchasing power, changing consumer demographics/middle class, rapid advancement in
Information Technology leading to convenience banking, low interest rates and banks’ need to
augment other avenues for profits are driving the retail banking growth in India.
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In the recent past, Retail lending has turned out to be key profit driver as retailing has thrown
open ample business sense in the Banking sector. While new generation private sector banks
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have been able to create niche products in this segment, Public Sector Banks have not lagged
behind. Leveraging their vast network and brand name, Public Sector Banks have forayed to
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garner larger slice in the retail pie.

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Innovation is the hallmark of retail banking. In bracing for tomorrow, a paradigm shift is taking
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place in financing through innovative products and mechanisms, product differentiation,

marketing, prudent pricing, customisation, home/electronic/mobile banking,
paperless/presence less/cashless banking etc., Fintech revolution with the projects of Govt.
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of India like “Make in India “and” Digital India” is changing the face of retail banking. Fintech
companies growing partnership with traditional banking and retail sectors, where they actively
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catering to evolving customer needs will further enhance Fintech expansion /Retail Banking.
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Our bank is well placed and encashing the growing space in retail banking using our brand
image, network and reach, leveraging customer base ,customer service , new products , tie-
ups with Fintech and adoption of competitive technology from time to time with equal
emphasis on due diligence ,credit history adherence to outsourcing norms and monitoring .
Bank believes and follows that customer service is the be-all and end-all of Retail Banking.
*****
Page 3 of 212
POLICY ON RETAIL LENDING FOR THE FY 2023-24
Retail lending addresses the loan demands of individuals rather than institutions and continues
to be a thrust area of lending by the Bank, taking into account its inherent potential to
contribute to the performance of the economy.
CHAPTER-I: GENERAL GUIDELINES
1. The loans/advances specified under various Retail Lending Schemes of the Bank can be
sanctioned by the concerned authorities as per the terms of the respective scheme
guidelines and the extent permissible there under, irrespective of other limits, if any,
enjoyed by the customer (or vice-versa) unless specifically indicated otherwise.
2. The sanctioning powers are determined on the basis of credit risk rating grade of the
borrower/score card, such process, wherever applicable, shall be a pre-sanction exercise.
Branches/ offices are advised to ensure strict compliance to this at the time of initial
processing of the credit proposal.
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3. Lending Automation Processing System (LAPS) is the Loan Origination System of the Bank
and all the Retail Loan proposals (except VSL against our bank deposits) shall be routed for
processing and sanction through LAPS only.
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4. All the loan proposals received shall invariably be in-warded in NB-179, web based package
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(Refer HO Cir. Nos. 37/2010 dated 01.02.2010, 129/2010 dated 09.04.2010 and 310/2011
dated 19.10.2011).
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5. Guidelines for obtention of CIRs:
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Bank has been using the services of “Credit Information Companies” for drawing of Credit
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Information Reports (CIRs) under Consumer and Commercial segments and submitting the
data to them. Under the present regulation, the information is shared with following
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Companies:
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(i) M/s.TransUnion CIBIL Limited

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(ii) M/s. Experian Credit Information Company India Private Ltd. (ECICI)
(iii) M/s. Equifax Credit Information Services Private Ltd. (ECIS)
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(iv) M/s. CRIF High Mark Credit Information Services Pvt. Ltd. (CHMCIS)
CIRs supplement the credit appraisal process, in which evaluation of credit histories of the
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applicant is one among the significant inputs. The system of drawing CIRs during appraisal
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of credit proposals also facilitates identification of serial defaulters, multiple borrowing

from various banks and timely identification of undesirable credit applicants at the entry
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level itself.
CICs have categorized the credit information under two groups:
 Consumer Accounts - Borrowal accounts in the name of Individuals

 Commercial Accounts - Borrowal accounts of other than Individuals.
Credit reports under Consumer Segment are available in following variants:
 Basic Report without score (gives all the details of the loan / advances of the borrower
with asset classification)
 Enhanced Report with Score (Basic Report plus Credit Bureau Score).
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Credit Bureaus evaluate the information present on credit report and assign as three-digit
score (representing probability of default over one-year horizon period) to the individual,
which are typically in the range of 300 to 900 with score of 300 representing highest risk
and 900 representing lowest risk.
The credit scores are applicable for consumer segments only (i.e., individual borrowers
only).
The mapping of CIC scores and Internal Risk Grades as applicable for Non-CRG cases are
as under:
CIBIL/CRIF/Equifax/ Experian Risk Grade Risk Description

750 and above CS: 1 Low Risk
749-700 CS: 2 Normal Risk
699-650 CS: 3 Moderate Risk
Below 650 CS: 4 High Risk
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6. Applicability of drawing Credit Information Report:
Applicability of drawing Credit Information Report (CIR) to loan accounts are as under:
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a. In case of Consumer accounts, obtention of CIR shall be mandatory except the
following.
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 Loans against our Own Deposits
 Staff loans
b. The Canara Retail Grade (CRG) shall be applicable for the Retail Lending schemes, which
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are listed in HO Cir 825/2021 & IC/106/2023 dt.14.02.2023[Canara Retail Grade (CRG)
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Model – Modification in guidelines]

c. The CIR shall be obtained at the time of processing credit proposals from existing clients
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of the Bank as well as credit proposals received from applicants who are new to our
Bank. The CIRs in case of existing accounts shall be obtained at the time of processing
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renewal/ enhancement proposals.

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 In respect of existing accounts, if the threshold limit as mentioned above is crossed on

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account of credit proposal on hand, the CIR shall be obtained as per guidelines.
 Wherever the two CIRs are to be obtained, Branches / Offices shall be free to obtain
the report from ANY of the CICs.
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 Branches / Offices shall consider the score of ANY of the Two CICs (wherever
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applicable) for the purpose of reckoning the delegation; lower / acute of the two risk
grades shall be considered.
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 LAPS package is having interface with the Credit Information Companies for fetching
the credit information reports (CIRs) directly. i.e., In case loans are processed in LAPS
package, then Branches/ Offices need not access the CIR from CICs sites using User ID
and password for this purpose.
 LAPS package allows fetching of CIR from all CICs. Branches/Offices can choose any of
the one/two CICs as applicable.
7. Points to be noted after obtention of CIR at Branches/Offices:
a. On receipt of an application for credit facility/ies at the branch level, the concerned
Advances Section officials of Branches/ Offices shall draw the CIR from the CIC’s website
before processing the credit proposal.
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b. At time of considering the proposal, critical examination of credit history, Number of
enquires, delinquency, Number of existing loans etc. shall be made.
c. If the name/s of any proprietor, director/s, partner/s etc., of an applicant appears in the
CIR, then the branch/ sanctioning authority, inter alia, shall examine the aspects affecting
the credit quality, before processing and appraising the proposals.
d. Branches/ ROs / Circles/ Wings at the time of submission of proposals shall indicate the
Credit Score, Name of CIC, and the Risk Grade Assigned on the first page of the note.
e. Business Loans to Proprietorship Concern or Other Entities: The score based delegation is
not applicable in case accounts classified as Proprietorship, partnership, One person
company or Corporate Entities. In all such cases the Branches shall obtain the CIR under
Commercial segment and extant guidelines shall be adhered to. Additionally, the Branches
shall draw the CIR without score under consumer segment for the beneficial owner(s) and
perused for the payment delays, delinquency status and mix of the loans & advances.
These aspects shall be commented upon in the appraisal note at the time of putting up
the proposal for consideration. Respective sanctioning authority shall take suitable credit
decision in respect of the proprietorship firm and other entities as applicable to
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commercial segment.
f. The Risk Grade based delegation is not applicable in case of accounts classified as
Proprietorship, Partnership, One Person Company or Corporate Entities. In all such cases
the Branches shall obtain the CIR under Commercial segment and extant guidelines shall
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be adhered to:
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Additionally, the Branches shall draw the CIR without score under consumer segment for
the beneficial owner(s) and perused for the payment delays, delinquency status and mix
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of the loans & advances. These aspects shall be commented upon in the appraisal note at
the time of putting up the proposal for consideration.
g. Respective sanctioning authority shall take suitable credit decision in respect of the
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proprietorship firm and other entities as applicable to commercial segment.

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h. The Risk Grade based delegation of powers shall not apply in case of ‘Commercial
Segment’.
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If the credit history of beneficial owners are below the Bench mark level, the respective
sanctioning authority has to take credit decisions after making necessary enquiry. The
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credit history of the beneficial owners shall not be reckoned solely for accepting or
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rejecting a credit proposal but shall be utilized as a reference for further credit
investigation on the credit worthiness of the entity.
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Branches are advised to obtain ‘Commercial Report –Without Score’. Commercial CIR- with
Score to be obtained only when specific instruction under any scheme guidelines is issued
by Bank.
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i. In case CIR is not available, the processing section/branch may proceed with the appraisal
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process duly mentioning the non-availability of CIR details of the proposed borrower and
keep a record of such failure in CIR generation along with the loan papers. The credit
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investigation in terms of extant guidelines shall continue to play an important role in

verification of bonafides / Credit worthiness of the borrower/ applicant.
j. Wherever sufficiently long credit histories in respect of borrowers are not available, CICs
are not allotting three digit scores, but a two digit score or risk index (-1 to 5) is displayed
in the report. In such cases, suitable credit decision shall be taken and loans shall be
sanctioned based on the normal credit sanctioning powers as detailed in HO Cir.
IC/165/2020 based on merits.
k. It may be noted that index displayed by any CIC other than three digit score need not be
reckoned for the purpose of delegation of power.
l. Further, if a score of -1 is displayed in the TransUnion CIBIL report, it shall be interpreted
as the individual has no credit history available in the last 36 months. Such proposals shall
be processed as a New Credit Customer, and scoring norms shall not be applicable.
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m. Since the cost of drawing CIR is proposed to be recovered from the borrower, the copy of
the CIR if demanded by the borrowers shall be given by the branches/offices free of cost.
n. Branches/Offices shall maintain proper records of the CIRs drawn from the CICs, charges
recovered from the customers etc.
o. Credit proposals shall not be processed without obtaining Credit Information Report (CIR)
from CICs in case of categories specified wherein CIR is made mandatory. Branches/
offices shall note that if CIR is not drawn at the time of sanction/renewal/enhancement
and so recorded in the credit proposal, it will be construed a staff lapse.
p. Wherever the employees of our Bank are sanctioned loans linked to RLLR, the Credit Risk
Premium applicable to these loans will continue to be the same as applicable to CRG–1 -
Low Risk customers, and Canara Retail Grade report need not be drawn.
8. Canara Retail Grade:
a. The Canara Retail Grade (CRG) shall be applicable for the Retail Lending schemes which
are listed in Annexure III of HO Cir 825/2021 dated 28.12.2021,47/2022 dt.27.01.2022 &
IC/106/2023 dt14.02.2023 [Canara Retail Grade (CRG) Model – Modification in guidelines]
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b. The Canara Retail Grade (CRG) shall be borrower specific, which means the grade shall be
arrived for each borrower in case of Joint Borrower / Co Applicant.
In case of joint borrowers & Co applicant/s, Canara Retail Grade (CRG) shall be arrived
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for all the applicants and the following approach shall be followed in respect of Delegation
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of Powers and Rate of Interest:
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 DOP: In case CRG Grade of all the applicants is not the same, the higher (acute) CRG
Grade among the applicants (including non-earning members), shall be considered for
deciding the Delegation of Powers.
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 ROI: For the purpose of Rate of Interest, best CRG grade among all the applicants
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whose income is taken into account for arriving the loan quantum/repayment/NTH
shall be considered. For deciding Rate of Interest, CRG grade of non-earning members
has to be ignored.
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c. Wherever, drawing of two CIC reports are required as per extant guidelines, acute risk
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grade (lower of the score) of two to be considered for CRG.

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d. The delegation of powers and Rate of Interest for Retail Lending schemes shall be linked
to Canara Retail Grade. The mapping of existing CIC risk grade with the Canara Retail
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Grade (CRG) for retail lending schemes shall be as under:
CIC Risk Grade Canara Retail Grade Risk Grade Definition

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CRG-Prime* Low Risk – I*

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CS:1
CRG – 1 Low Risk -II
CS:2 CRG – 2 Normal Risk
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CS:3 CRG – 3 Moderate Risk

CS:4 CRG - 4 High Risk
*CRG Prime is applicable to Housing Loans and Canara Vehicle 4-wheeler loans for arriving at
ROI.
The rate of interest of retail lending products shall be arrived based on Canara Retail Grade
(CRG) as per the mapping provided.
Rate of Interest on Retail Lending schemes are linked to Canara Retail Grade except the
following schemes:
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 Canara Budget Special package
 Canara Rent
 Canara Jeevan
 Swarna Loan
 Canara Cash
 Canara Pension
 Canara Home Loan secure
 Various types of Education Loans
In respect of the following schemes, CRG shall not be applicable and CRG need not to be
arrived:
1. Canara Pension
2. Education Loans
3. Gold Loans
4. Canara Vehicle loan 4 wheeler to Firms and Companies
However, guidelines on drawing of Credit Information Report shall continue to be applicable
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for above schemes.
9. Pre-Sanction verification of credentials of applicants through our Bank officials / Vetting

Agencies / M/s Perfios (Fin-Tech Company) for ensuring Due Diligence for Retail Loans:
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a. Independent verification of customer credentials (Customers Due Diligence) by our Bank
staff/officials where services of Vetting Agencies are not available.
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Particulars Verifications Procedures/Activities
Residence/Address RAHs/Branch officials should invariably visit the customer’s
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Verification House/ premises where KYC documents like PAN Card,

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Voter’s ID, Ration Card, Aadhaar Card, etc. will be physically

verified & authencity of the same shall be ascertained with
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given credentials of the customer (Name & address).

PAN/Aadhaar/Voter Id documents can be verified through
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SAS package under Deposit module available in CANNET or

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Verification of PAN/Voter with online web services for PAN & Aadhaar Card.
Id/Aadhaar Card (Under
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CANNET) The required credentials of the borrowers can be verified in

CANNET under following path:-
CANNETQuick LinksSingle Authentication Services (SAS)-
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Biometric LoginEnter User Id & Password of

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StaffDepositsKYC PAN/Voter Id Verification.

Verification of The required credentials of the borrowers can be verified in
PAN/Aadhaar Card online as under:-
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(Online)
(a) PAN Card:- Enter
https://www.incometax.gov.in/iec/foportal Click on tab
Verify PAN Enter PAN No, Full Name, Date of Birth &
Mobile No of Staff/Official & press Continue Enter Mobile
OTP No received & Click Validate PAN Verification status
will be displayed.
(b) Aadhaar Card: - Enter
https://resident.uidai.gov.in/verify  Enter 12 digit
Aadhaar No, Captcha Verification Code displayed in website
and Click on Proceed to verify Aadhaar Verification status
will be displayed.
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Particulars Verifications Procedures/Activities
Income/Salary/ITR/ITAO/ In case of Salaried:
Form 16 verification RAHs/Branch officials shall visit the Applicants/Employee’s
organization and check his genuiness of salary details by
verifying the pay-slip submitted by the applicants with the
Employer.
In case of Non-salaried /Business class:
RAHs/Branch officials shall cross verify the Balance sheet and
P & L account.
RAHs/Branches to verify the genuiness of the ITRs/26AS
statement/s and correctness of Income & Tax Payment
details through the applicant/s login in Income Tax Portal
under following link:-
https://www.incometax.gov.in/iec/foportal
Profession/Employment/ In case of Salaried
Business verification Branch officials will visit the Employee’s organization and
check his employment details like Date of Joining,
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Designation, Address, Employee ID No, Length of Service etc.
In case of Non-salaried /Business class:

Branch official will personally visit the premises/ business
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place of the customer and verify about the business activity
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of the customer.
Verification of Branch officials will check the genuineness of the property
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Property/Securities & by exercising due diligence. Documents to title deeds shall
Approved be verified through personal visit to the property, verifying
Plans/permissions etc. with the boundaries, cross verification of search report at
SRO with Sale deed, obtaining of updated EC, discreet
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enquiry with the neighbours etc.

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Approved plans and permissions can be verified by visiting

nearest Town planning authority/Development authority.
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Other Bank statement By sending OPL letters to respective Bank branches where the
and neighbourhood applicant is having is account in order to ascertain
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verification. satisfactory opinion of customers and veracity of Bank

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statements. The required neighbourhood verification shall be

carried out as a part of due-diligence activity confirming
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about the applicants residence, length of stay in present

address, job information etc.
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b. Pre-sanction verification of credentials of applicants through vetting agencies along with

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process flow as a part of due Diligence.
Activities assigned to Vetting Advantages of Vetting Agencies

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Agencies
i. Residence/Address verification. i. Eliminates undesirable cases at the initial
stage itself.
Process flow for verification:
 Vetting agents/officials should invariably visit the customer’s House/ premises where
KYC documents like PAN Card, Voter’s ID, Ration Card, Aadhaar Card, etc. shall be
physically verified & authencity of the same to be ascertained with given credentials
of the customer (Name & address).
 The required credentials of the borrowers can be verified in online as under:-
(a) PAN Card:- Enter https://www.incometax.gov.in/iec/foportal Click on tab
Verify PAN Enter PAN No, Full Name, Date of Birth & Mobile No of Staff/Official &
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press Continue Enter Mobile OTP No received & Click Validate PAN Verification
status will be displayed.
(b) Aadhaar Card: - Enter https://resident.uidai.gov.in/verify  Enter 12 digit
Aadhaar No, Captcha Verification Code displayed in website and Click on Proceed to
verify Aadhaar Verification status will be displayed.
 In addition to the above following points need to verified as under:-
 Evidence supporting proof of residence
 Landmarks for identification
 Telephone No/Mobile No authenticity
 Neighborhood/Vicinity status & location
 Type of BuildingFlat/Bungalow/Others & No of Floors/Unit/Portions
 Period of stay in the present residence
 Whether residence is Own/Rented/Company provided/Others
If Others, the details of the same.
 Nature of Building Fully Residential/Partly Commercial
 General Appearance of the propertyExcellent/Good/Fair/Poor
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 Type of LocalityPosh/Upper Middle Class/Middle Class/Lower Middle
Class/Slum
 Nature of SurroundingsDeveloped/Under developed/Non development
 Whether all the information collected matches with the details
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furnishedYes/No
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If No, reasons.
 Details of unmatched items as per assessment.
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 Overall Assessment i.e Positive/Negative factors.
ii. Income/Salary/ITR/ITAO/Form 16 ii. Helps efficient utilization of Management time
verification in processing and sanction.
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 In case of Salaried:
 Vetting agents/officials shall visit the Applicants/Employee’s organization and
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check his genuiness of salary details by verifying the pay-slip submitted by the
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applicants with the Employer.

 In case of Non-salaried /Business class:
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 Vetting Agents/officials shall cross verify the Balance sheet and P & L account.
 Vetting agents/officials to verify the genuiness of the ITRs/26AS and correctness of
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Income & Tax Payment details by using the applicant/s ITR login credentials in Income
Tax Portal under following link:-https://www.incometax.gov.in/iec/foportal
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 In addition to the above following points need to verified as under:-

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 Name of the ApplicantSole/Joint Applicant/Co-obligant/Guarantor.

 Nature of Activity/ClassService/Business Class
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If Business Class then sub-activityProfessional/Self-

Employed/Trading/Manufacturing/Service Sector
 PAN No
 IT Ward Office No/Address
 No of years IT Returns/Date of filing ITR’s
 Computation of Income
 Income as per documents submitted & verified
 Veracity of Documents submitted Genuine/Fabricated
 Whether all the information collected matches with the details furnishedYes/No
If No, reasons.
 Details of the unmatched items as per assessment.
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iii. Profession/Employment/Business iii. Quick disposal of applications and objectivity
verification in credit decision.
 In case of Salaried
 Branch officials will visit the Employee’s organization and check his employment
details like Date of Joining, Designation, Address, Employee ID No, Length of
Service etc.
 In addition to the above following points need to be verified as under:-
 Name of the Company/Office
 Type of EmployerGovernment/Private
 Nature of BusinessProfessional/Manufacturing/Trading/Service Provider/Others
If Others, details of the same.
 Type of HoldingPublic Ltd/Pvt Ltd/Others
 Type of JobPermanent/Probation/Temporary/Contract employee/Others
 Salary ParticularsSalary slip/Form 16
 Last salary drawn
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If No, reasons.
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 In case of Non-salaried /Business class:
 Branch official will personally visit the premises/ business place of the customer
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and verify about the business activity of the customer.
 In addition to the above following points need to be verified as under:-
 Name of the Business Unit
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 Nature of Business & year of commencement

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 Whether Trade License/GST/VAT Registration/STAO/Others obtainedYes/No

 Location of BusinessResidential area/Commercial Centre/Industrial Area/Others
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 Type of HoldingSole Proprietorship/Partnership/Public Ltd/Pvt Ltd/Others
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 Satisfactory operations in the unit to be ensured.

 Ownership of Business propertyOwned/Rented/Others
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 No of employees in Business Unit
 Any evidences supporting business
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If No, reasons.
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iv. Verification of Approved Plans/ iv. Helps detection of organized group frauds.
permissions etc.
 Vetting agents/officials will check the genuineness of the property by exercising

due diligence.
 Documents to title deeds shall be verified through personal visit to the property,
verifying with the boundaries, cross verification of search report at SRO with Sale
deed, obtaining of updated EC, discreet enquiry with the neighbours etc.
 Approved plans and permissions can be verified by visiting nearest Town planning
authority/Development authority.
 In addition to the above following points need to be verified as under:-
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 Document assessmentBuilding Plan/Tax Paid receipt/B-extract/Others
 Whether address mentioned in plan document matches with title
documentYes/No
 Type of BuildingFlat/Bungalow/Others
 No of Floors/Units/Portions
 Whether all the information collected matches with the details furnishedYes/No
If No, reasons.
 Details of unmatched items as per assessment.
 Overall Assessment i.e Positive/Negative factors.
v. Other bank statement and v. Improves response time and Turn Around
neighbourhood verification Time.
The following points to be verified as under:-

 Name & Address of the Bank / Financial institution.
 Address linked with the A/c No
PM
 Date of A/c opening & A/c no.
 Period of Statement & discrepancies observed, if any.
 Whether Bank statement duly certified/signed by bank official.
3
 Landmarks for identification
 Neighborhood/Vicinity status & location
:5
 Type of BuildingFlat/Bungalow/Others & No of Floors/Unit/Portions
 Period of stay in the present residence
04
 Whether residence is Own/Rented/Company provided/Others
If Others, the details of the same.
 Nature of Building Fully Residential/Partly Commercial
3
 General Appearance of the propertyExcellent/Good/Fair/Poor

02
 Type of LocalityPosh/Upper Middle Class/Middle Class/Lower Middle

Class/Slum
/2
 Nature of SurroundingsDeveloped/Under developed/Non development

 Evidences supporting proof of residence
0
 Whether all the information collected matches with the details

furnishedYes/No
/1
If No, reasons.
26
 Details of unmatched items as per assessment.

 Overall Assessment i.e Positive/Negative factors.
8
c. Utilizing the services of M/s Perfios (Fin-Tech Company) for Digital Due Diligence of
customer’s credentials.
77
 Digital Customer Information Validations (Ex: Voter ID, Passport, ITR, Udyami Mitra,
99
Udyog Aadhar, GST, MCA etc.)

 Customer analytics Services (Ex: Financial Statement analysis, Bank Statement
analysis, ITR/Form 16/26AS analysis).
 RAHs/Branches can access the link URL:
https://canarabankretail.integreat.perfios.com to utilize the facility. To get the user
credentials RAHs/Branches shall send their request for user creation through email to
retailmrp@canarabank.com with following details (Name of the Staff, Staff No, DP
code, Mobile No, Bank Personal email id).
Page 12 of 212
Note:
a. Wherever delay in disbursement in respect of Mortgage based loans viz., Housing Loans,
Mortgage Loan etc., is observed the RAHs/Branches to ensure that the broken period EC is
obtained.
b. RAHs/ Branches are advised to obtain original PDF File (soft copy) of Bank statements and
IT return from the customers (instead of scanned Hard Copy) for uploading in M/s Perfios
portal while performing pre-sanction verification of customer’s credentials.
c. We have come across some instances, wherein fabricated ITRs were submitted by the
borrowers while processing the Retail loans. To overcome this RAHs/Branches shall
invariably check the Financial Credentials of the customers along with genuineness of the
ITRs.
d. RAHs / Branches shall ensure that all the required Pre sanction verifications of customer
credentials (through Digital Mode /External Agencies/Banks own staff) are taken place
mandatorily and preserve the respective reports along with loan papers in all the Retail
loan sanctions.
10. Credit facilities to Defaulting Borrowers:
PM
(i) Consumer segment (Defaulters in other banks):
In respect of consumer segment accounts where Credit Information Report from CICs are
3
applicable, following guidelines shall be applicable:

:5
In case the credit history indicates the status as Written Off/Settled account
04
(Not older than 3 years) then same shall be placed to Next Higher Authority.
However, in case the proposal falls under the delegated power of Circle Head
CAC (CGM/DGM/GM) & above authorities, then same can be considered by the
3
respective sanctioning authorities.

02
 In case the credit history indicates the status as Overdue then the respective
sanctioning authority as per Risk Grade shall take a suitable credit decision.
 Reports having status as Written Off / Settled account which are more than 3
/2
years old may be ignored for the purpose of linkage to delegation.

0
(ii) Consumer segment (Defaulters in our Bank):

/1
Fresh facilities to borrowers who had been allowed / agreed to by the Bank for
26
concessions/compromise settlements:
In respect of borrowers to whom concessions/ compromise settlements have been allowed

8
/ agreed to by the Bank, no further direct / indirect finance shall be made to such
77
borrowers except under the circumstances as stated in the following paragraphs or

specified in Para 3.1.3 of HO Cir. 104/2023 dt. 14.02.2023.
99
However, in following cases, fresh credit facilities may be considered as per the following
guidelines:
 Package / relief extended as per RBI parameters to sick units under tiny/
decentralized sector should not be treated as concession. Similarly, interest
concession extended in the normal circumstances taking into account the business
prospects shall not be considered as write off / sacrifice for the purpose.
 Need based fresh finance up to Rs.50000/- may be considered by the respective
sanctioning authority to the borrowers who are non-wilful defaulters, undertaking
agricultural and allied activities, those belonging to weaker section for
undertaking all gainful activities and have repaid at least 10% of the principal
Page 13 of 212
amount of the previous loan before permitting concession / compromise and only
after 3 months from the date of clearance of the dues under OTS.
 In respect of Gold Loans, respective sanctioning authority can permit gold loan of
upto Rs. 1.00 lakh after 3 months from the date of clearance of the dues under
OTS. After 6 months from the date of clearance of the dues under OTS, Respective
Sanctioning Authority can permit Gold loans above Rs. 1.00 lakh.
 The applicant borrower should not be a defaulter with other Banks in the service
area of the branch concerned and should submit ‘No Due Certificate’ from Service
Area Banks, Co-operative Societies and other nearby branches / Banks. However,
No Dues Certificate need not be insisted for Gold Loans.
 Fresh loans may be considered as far as possible in joint names viz., along with
the spouse or along with the eldest members in the family (in the absence of
spouse) to ensure family responsibility.
 Need based fresh finance for such borrowers can be permitted by RO Head CAC &
above authorities upto their powers subject to recovery of entire upto date
interest and charges in the settled accounts.
PM
11. Guidelines on availing all Credit Facilities from a Single Branch:
Each Borrower should avail the credit facilities from a single branch.
Only one branch can extend finance for all the requirements for single borrower depending
3
upon the feasibility / viability and their experience. In exceptional circumstances where the
:5
customer requires finance at another branch, the same may be permitted by Circle Head CAC
and above authorities upto their delegated powers.
04
Circle Head CAC, where the proposed exposure is envisaged shall be the permitting authority
for the above relaxation.
3
02
The above guidelines may not be made applicable for loans to depositors against our own
deposits.
/2
12. Ensure compliance to various stipulations pertaining to purpose, margin, rate of interest,
0
securities, repayment period and other norms.

/1
13. Aggregation of liabilities/limits to be done for deciding the Sanctioning Authority in case of
26
sanction of second/subsequent loans under the same Retail Lending scheme.
For Housing Loan, aggregation of liabilities/limits of all variants of Housing Loans of the
8
party will be done for deciding sanctioning authority irrespective of the fact that whether
77
the Housing Loans belong to Non HL-CRE category (i.e. up to two Housing units per family)
or HL-CRE category (i.e., 3rd & subsequent Housing unit) &
99
For Sanctioning Second and subsequent 4-Wheeler vehicle Loan (excluding 2-wheeler) to
the same borrower during the currency of the existing 4-wheeler vehicle loan can be
considered by Senior Manager (Scale-III) at RAHs & above authorities (RAH Head & above)
up to their delegated powers of Canara Vehicle Loans subject to fully satisfied about the
credit worthiness, repayment capacity of the borrower and provided there are no overdues,
satisfactory repayment track record in the existing Canara Vehicle Loan accounts.
However, in respect of schematic loans to High Risk rated business concerns like proprietary
concerns, partnership firms, Corporates etc., enjoying credit facilities, the other facilities/
limits sanctioned to the borrower, if any (including business loans) to be aggregated to
decide delegating authority. DOP is as detailed in charts of the DOP circular No.
IC/104/2023 dt.14.02.2023.
Page 14 of 212
Regarding stipulation of Rate of Interest: while sanctioning second/subsequent loan under
any Retail Lending Scheme, liabilities of existing loans under same Retail Lending scheme
should not be aggregated with the limit of fresh loan under that Retail Lending scheme for
deciding interest rate applicable to fresh loans.
14. Request for any modifications or variations in relation to the schemes in respect of
individual cases can be taken up with GM, Retail Assets Wing, HO through the respective
Circle Offices based on merits of individual cases.
15. CGM/GM HO CAC and above authorities can modify/permit variations to the individual
Retail Loans based on the merits of the case.
16. Retail Lending proposals other than interest concessions falling under the sanctioning
powers of ED-CAC and CAC of the Board shall be recommended by the Credit Committee.
17. All proposals in respect of Retail Lending Schemes of close relatives of our employees shall
be sanctioned by scale IV and above authorities.
PM
18. If loans/ advances are to be sanctioned to a close relative of the sanctioning authority,
then, only the next higher authority shall consider such proposals.
3
19. As per HO Cir.104/2023 point no 3.42 All proposals of close relatives (Other than relating
:5
to credit sanctions classified under Agricultural sector and Personal (Retail) Loans) in
respect of individual borrowers, proprietor in case of proprietorship firms; and partnership
04
firms where ANY OF THE PARTNERS are close relatives shall be placed before the next
higher authority for sanction.
Other Personal loans: Canara Mortgage, Canara Rent, Canara Site, Canara Jeevan, Canara
3
Home Loan Plus, Canara Home Loan Secure.

02
20. Delegation of Powers for branches having NPA Levels of more than 5% is as under:
/2
Parameters Sanctioning Powers

0
In respect of Branches mapped to Branches mapped to RAHs have no powers to

/1
RAHs for sanctioning of Mortgage sanction any Mortgage Retail Loans. In case,
Based Retail Loans Branches mapped to RAHs having NPA levels of more
26
than 5% under any Mortgage based loans, the

respective RAHs have no powers to sanction the
loans under these schemes.
8
77
The above proposals have to be sanctioned by RO

HEAD CAC and above Authorities up to their
respective Delegated Powers on case to case basis.
99
Circle Heads are authorized to permit such RAHs to

sanction Retail Mortgage based Loans and have to
review all mapped Branches to RAHs on quarterly
basis duly analyzing the delinquency/ NPA levels
before permitting such RAH.
Page 15 of 212
Parameters Sanctioning Powers
a. In respect of Branches mapped Branches having NPA levels of more than 5% under
to RAHs for sanctioning other any Retail Lending Schemes have NO powers to
than Mortgage based Retail sanction the loans under these schemes. The above
Loans. proposals have to be sanctioned by RO HEAD CAC
and above Authorities up to their respective
b. In respect of branches not Delegated Powers.
mapped to RAHs for However, Circle Heads are authorized to permit
sanctioning of all Retail Loans select Branches/RAHs to sanction Retail Loans
despite their NPA under Retail Loans being more
than 5% by analyzing details of overdues /NPAs,
steps initiated in reduction of overdues /NPAs and
justification for the same.
21. PMAY URBAN-CLSS (EWS/LIG/MIG I & II) Product Code:630:
The above scheme is not extended by Government of India, after 31.03.2022, hence, no
subsidy facility is available. Hence, the same is deemed as discontinued until further
communication. (HO Cir. 680/2022)
PM
22. In case of two wheelers - Sanction of loan based on Minimum Value of the vehicle:
Category of Branch Min. Invoice value of the vehicle (considered for
3
sanction)
:5
Metro/Urban Branches Rs.1.00 lac and above
Semi Urban/Rural Branches No Minimum Limit
04
23. All Canara Vehicle Loans & Green wheels (4 wheelers including Agriculturists) proposals
sourced by branches attached to RAHs will be sanctioned by RAHs. For further details i.e,
3
Pre-sanction process, Appraisal, Processing (i.e., sanctioning, documentation,

disbursement, safekeeping of loan documents) till closure of the loan for End to End &
02
standalone branches refer HO Cir 257/2021 dt 19.04.2021 & IC/514/2022 dt 19.08.2022.

/2
Further, recovery mechanism guidelines to be adhered as per HO Cir No. IC/514/2022

dt.19.08.2022.
0
/1
24. Waiver of Salary credit /mandate in respect of Canara Vehicle (two wheelers) and Housing
loans may be permitted by DM/AGM RAH or DM/AGM-RO-CAC or DM/AGM COCAC in respect
26
of proposals falling up-to their powers. Sanctioning Authorities starting from DGM-RO-CAC
and onwards are delegated with powers to permit the above relaxations, up to their
delegated powers subject to the following conditions:
8
77
i. Sanctioning authority should obtain the pass sheet of the salary account of the
prospective borrower for the past six months, verify the salary credits and satisfy
about the conduct of the account.
99
ii. The post-dated cheques/NACH-ECS Mandate accepted are of the salary credit
account only.
iii. Proof as regards employment & confirmation in the service.
iv. All the existing procedural guidelines pertaining to obtention of post-dated
cheques/NACH-ECS mandate to be followed.
25. Disbursement of vehicle loans by way of NEFT/RTGS for Retail Loans:
Sanctioning authority is empowered to disburse of vehicle loan proceeds financed under

Retail Lending by way of NEFT/RTGS to the dealers in exceptional cases based on
genuineness of the dealer and their invoice on case-to-case basis. After sending the
RTGS/NEFT an e-mail has to be sent to the dealer’s e-mail id. RTGS/ NEFT payment report
(along with UTR No.) and the e-mail sent copy to be kept with the loan papers.
Page 16 of 212
26. Canara Rent & Canara Mortgage proposals up-to Rs.7.50 Crore falling under HO powers
shall be processed by Retail Assets Wing at HO.
27. Branches attached to RAHs have no powers to sanction any Mortgage based Retail Loans.
All mortgage based Retail Loans to be mandatorily sanctioned at RAHs or forwarded
through RAHs to RO/Circle/HO for sanction as per respective delegated powers. However,
in case of Education Loans and loans to be sanctioned under Jansamarth & Vidyalakshmi
portal, RAH Head & above authorities as per their respective delegated powers can
sanction the same.
28. Education Loan (with and without mortgage) are to be dealt (Processing and Sanction) by
RAH/ Regional Office/ Circle Office as per their respective delegated powers only.
29. OCI/PIO category (For Inland studies): Loans can be extended to non-resident Overseas
Citizens in India (OCI)/ Persons of Indian Origin (PIO) for pursuing education in India
subject to Regulation 7 C of Foreign Exchange Management (Borrowing and Lending in
Rupees Regulations) 2000. {Notifications No FEMA 4/2000-RB dated 3rd May 2000 & further
amended vide Notifications No. FEMA 115/2004-RB dated 25th March 2004}.
PM
30. Education Loan shall be sanctioned to Minor student represented by parent /guardian &
Major student jointly with parent /guardian. There is no specific restriction with regard
to the age of the student to be eligible for education loan.
3
:5
31. In case of Inland Studies, wherever student is directly getting admission to the College
without undergoing any selection process, (i.e., Entrance Tests/scoring in eligibility
04
tests/merit based selection process) then educational loan can be considered if the
Student has scored minimum 60% marks in the previous qualifying examination in case of
candidates belonging to General category and 50 % in case of girl students and students
3
from SC/ ST communities.

02
32. In case of Education Loan for Abroad studies, wherever Students are selected directly
without undergoing any Selection process (i.e. Entrance Tests/Scoring in eligibility
/2
tests/merit based selection process); in such cases, submission of offer/invite/admission

0
letter of the course will be considered for eligibility of the Education Loans.
/1
33. Education Loan for pursuing undergraduate medical course in Foreign Medical Institutions
can be considered subject to fulfilment of all other terms and conditions as per MCI
26
guidelines.
34. Close relatives of our employees are also eligible for education loan under the scheme for
8
both studies in India and studies abroad on the same terms and conditions as applicable
77
to others. However, employees of our Bank are not eligible for loan under the scheme for
themselves.
99
35. CO-BORROWER SHIP:
 Parent will be co-borrower, both in case of minor and major students. Branches /offices
to be guided by the latest norms for Credit Information Companies (CIC) score related
guidelines.
 Where parents are not available, legally appointed guardians may be accepted as co-
borrower.
 In case of students, who are major (> 18 years of age) and parents are not available
due to death or any other valid reason for offering joint borrower ship , such cases have
to be referred to Circle Head for necessary clearance, with joint borrower ship of any
other close relative of the student, acceptable to the Bank.
Page 17 of 212
36. COURSES NOT ELIGIBLE FOR SANCTION OF EDUCATION LOAN UNDER IBA MODEL EDUCATION
LOAN SCHEME:
 Air craft maintenance engineering/Pre-sea training which are neither degree nor
diploma.
 Vocational and skill development study courses. As separate loan scheme is available
under IBA’s Skill Loan Scheme.
 Off campus courses. Note: Students of licensee/franchisee institutions are NOT eligible
under the scheme.
37. NORMS FOR SANCTION OF MULTIPLE LOANS TO MEMBERS OF SAME FAMILY:
Educational Loan is given for an individual and not for family as a unit. Hence, the
restriction of two children for extending multiple loans for wards of same family has been
removed. There shall be no restriction for sanctioning educational loans for more than one
child in the same family, treating each case as separate for the purpose of security and
other norms. Second loan can also be given for higher studies / continuing the studies.
However, if the amount granted including the existing loan (aggregate liability) exceeds
the cut off limit for obtaining security, approved security as prescribed should be
PM
obtained.
38. COVERAGE OF LIFE INSURANCE:

a. Obtention of life insurance cover is not mandatory; however, it can be obtained at the
3
option of the student borrower in writing.
:5
b. As per IBA guidelines insurance premium can be part of Education loan project cost.
c. Insurance to be covered up to 120% of loan amount sanctioned without any upper cap.
04
d. As our bank is already having arrangement with Canara HSBC Life Insurance Company
Ltd, all Life Insurance policies shall be preferably covered with them.
3
39. REPHASEMENT GUIDELINES: RESTRUCTURING / REPHASEMENT OF EDUCATION LOANS:

02
Sanctioning Authority can restructure/rephase the Education Loans as per the extant
guidelines prevailing in the Bank, if requested by the borrower. Further, Branches/Offices
/2
may consider providing additional moratorium taking into account i.e., to Pursue Higher
Education, Underemployment/ unemployment, Setting up of start-up units, Extension of
0
Time for completion of course and for further detailed guidelines please refer HO Cir
/1
653/2021 dt.01.10.2021.
26
40. IRAC NORMS AND CLASSIFICATION: For classification of advances as NPA, 90 days concept
will be followed. The loans are to be classified as per specific scheme. For, all other
guidelines branches/offices to follow as per HO Cir 786/2021 dt.09.12.2021 issued by NPA
8
MANAGEMENT SECTION RECOVERY, LEGAL & FRAUD PREVENTION WING, Head Office from
77
time to time.
41. Other Guidelines: While arriving the prudential exposure of the borrower, exposure under
99
Retail Lending Schemes shall be aggregated, (please be guided by delegation of powers

issued by RM wing from time to time).
42. Flexibility in selecting EMI commencement date to match with Salary/ Income generation
date under Retail Loans
a. To extend one-month repayment holiday for all the retail loans in the system by default
from the date of the sanction of the loan.
b. To fix repayment/EMI commencement date 7 days from the salary/income generation
date after completion of one-month repayment holiday.
c. Wherever Borrower requests for repayment date between salary date and default
repayment date (i.e., seven days from salary date) provision will be available in the
system.
Page 18 of 212
d. To ensure that total repayment term does not exceed maximum period permitted under
that particular scheme.
e. Three additional fields shall be made available as under:
 Salary/Income generation date.
 Repayment Start Date.
 Repayment Start Date as per customer’s request (if data is not fed in this field
then by default 7th day from the salary/income generation date shall be fixed
as repayment date).
43. INTRODUCTION OF SAMEEKSHA- SANCTION REVIEW PORTAL IN SAS FOR MONITORING THE
STATUS OF THE SANCTION REVIEW:
As per extant guidelines, all sanctions to a borrower exceeding total exposure (FB+NFB) of
Rs.5.00 lakhs (Rs.6.00 lakhs in case of SHGs) are to be individually sent for review to the next
higher authority along with Loan Application, Sanction Processing notes and Sanction
Memorandum etc.
In order to reduce the Turn Around Time and to have proper monitoring mechanism, CAM Wing
PM
along with DIT Wing and BA & IS Wing have developed system driven SAS based portal
“SAMEEKSHA” for updation of the Status of Sanction Review at RO/CO/HO as per applicability.
Account details of Sanctions made through LAPS where Review is applicable flows on the T+1
3
basis from backend to “Sameeksha” portal. Branch/RAH/MSME Sulabh/RO/CO/HO need to
:5
punch the details of sanctions made at their office manually which are not sanctioned through
the LAPS
04
Branches / Offices shall access the Package from SAS portal as under:
3
SAS Login >General> SAMEEKSHA – SANCTION REVIEW PORTAL

02
For further details, please refer HO Cir IC/392/2023 dt.26.04.2023.

/2
44. INTRODUCTION OF TURN AROUND TIME (TAT) TRACKER PORTAL IN SAS FOR MONITORING
0
THE TURN AROUND TIME (TAT) OF NON LAPS RELATED CREDIT PROPOSALS AS WELL AS NON-
/1
CREDIT PROPOSALS:
26
In an effort to reduce Turn Around Time (TAT) and implement effective monitoring
mechanisms, the bank developed a system-driven SAS-based portal called "SAMEEKSHA” (HO
Cir. IC/392/2023 dated 26.04.2023) that enables the timely update of Sanction Review statuses
8
at the RO/HO/CO. Further in an effort to improve the efficiency and turnaround time for non-
77
LAPS related credit proposals, as well as non-credit proposals, our bank developed solution in
SAS Portal known as the "TAT Tracker Portal”. This innovative package has been specifically
designed to streamline and expedite the processing of various proposals within the bank.
99
For Retail Loans, Non Credit Proposal – Other than credit related such as premises related,
Sanction modification, Policy guideline variation requests and any other communication which
requires action/permission are applicable.
This package is based upon maker and checker concept both at forwarding branch/office as
well as sanctioning office.
The TAT Tracker Portal incorporates the following key features:
 An intuitive dashboard that provides a visual representation of data, offering a

comprehensive overview.
Page 19 of 212
 A detailed dashboard that presents the real-time status of proposals at different
stages.
 Necessary reports for tracking & Monitoring of Turnaround Time of the proposal
and current status of the proposals.
Branches / Offices shall access the Package from SAS portal as under:
CANNET>Quick Links>SAS-Biometric Login>General>TAT Tracker
A unique reference number is generated for each proposal, which is to be invariably mentioned
in the proposal forwarded from branches (soft copy/Hard copy).
Roles and responsibilities of branches/administrative units in the TAT Tracker portal are as
follows:
A. Branches:
 Submit all proposals to the RO/CO/HO after entering complete and accurate
PM
details into the TAT Tracker Portal.
B. ROs/COs:
3
 Submit all proposals to the CO/HO after entering complete and accurate details

into the TAT Tracker.
:5
Review and process proposals received from branches/ROs in the TAT Tracker
04
portal.
 Update the sanction status in the TAT Tracker Portal.
 Forward proposals to the CO/HO for further processing.
3
 Close proposals in the TAT Tracker portal upon completion.

02
 Forward sanction details to the relevant branches, ROs, or COs.

 Communicate requests for adding new categories/sub categories in the TAT
/2
Tracker Portal to the respective sections in the wings of the HO.

0
C. Head Office:
/1
 Review and process proposals received from branches, ROs, or COs in the TAT
26
Tracker Portal.
 Approve requests from branches, ROs, or COs for adding new categories/sub
categories in the TAT Tracker Portal.
8
77
For further details, please refer Special Comm. 112/2023 dt.24.05.2023.
45. INTRODUCTION OF ONLINE SPONSOR DEBIT E-MANDATE REGISTRATION FACILITY FOR

99
RECOVERY OF MONTHLY INSTALLMENTS THROUGH NACH:
Bank has introduced “API Based E-mandate” where a customer may register/lodge the
mandate through Net Banking/Debit Card Credentials to debit the Destination bank accounts.
This process gets initiated through the web link of the Bank which is live and registered with
NPCI and linked up to the destination bank where the customer maintains the account for final
authentication.
By introducing this facility, the Bank is benefited by faster and easier execution of mandates,
since Customers themselves are registering/lodging the mandates. The process is hassle free
and saves time for the Bank and as well as for the Customer.
Page 20 of 212
Other Guidelines:
 Branches have to guide customer to lodge mandate with upper limit at least 20% more
than EMI amount to cover the rate of interest changes.
 In case, customer wants to cancel the mandate, he/she has to submit the mandate
cancellation request. Branch/RAH will be cancelling the mandate in system and the
same will be authorized. Clearing Section Mumbai will download such file of cancelled
mandates and will upload the same to NPCI.
 Physical mandate as per NF-1014 to be used only if Destination bank (i.e. Bank where
customer is maintaining his/her salary account) is not live in E-mandate facility of NPCI.
 Physical mandates to be obtained in case of Joint Borrowers / Multiple mandates.

46. CONCESSION IN RLLR UNDER HOUSING LOANS (ALL VARIANTS) & CANARA VEHICLE LOANS
(FOUR WHEELERS INCLUDING CANARA GREEN WHEELS & AGRICULTURISTS) AS PER CANARA
RETAIL GRADE TILL 30.09.2023:
The concession in RLLR under Housing Loans (all variants) & Canara Vehicle Loans (Four
PM
Wheelers including Canara Green Wheels & Agriculturists) as per Canara Retail Grade is
permitted till 30.09.2023 as under:
a) Housing Loans (all variants) as per Canara Retail Grade in four slabs based on sanction
3
limits (i.e. upto Rs 50.00 lacs, >50.00 lacs to Rs 1.00 Crore, >1.00 Crore to Rs 2.50 Crore
:5
& >Rs 2.50 Crore).
b) Canara Vehicle Loans (Four Wheelers including Green Wheels & Agriculturists) as per
04
Canara Retail Grade in two slabs based on sanction limits i.e., loans sanctioned upto
Rs 15.00 lacs and more than Rs.15.00 lacs & above.
3
The above concession in RLLR shall be applicable only to the new loans opened and till the
02
loan completes 3 years from the date of the first disbursement.
For further details, please refer HO Cir IC/432/2023 dt.12.05.2023 & IC/444/2023 dated
/2
17.05.2023
0
47. DELEGATION OF POWERS IN RESPECT OF ED-CAC & CAC OF THE BOARD FOR PERMITTING
/1
CONCESSION IN RATE OF INTEREST UNDER RETAIL LOANS:

26
(i) Delegation of Powers for permitting concession in ROI in respect of CRG linked i.e Housing
loans above Rs 1.00 Crore (all variants), Canara Site & Canara Home Loan Plus as under:
8
(a) Housing loans above Rs 1.00 Crore (all variants), Canara Site & Canara Home Loan Plus:
77
Authority Extent of reduction in ROI

CGM/GM-HO-CAC – For all
borrowal accounts/ proposals Reduction in Rate of Interest up to RLLR
99
upto CGM/GM HO-CAC powers

Risk Grade Extent of reduction in ROI
*Concession upto a maximum of
CRG-Prime & CRG-1 25bps from prevailing applicable
ED-CAC ROI
CRG-2 & CRG-3 50bps from prevailing applicable
ROI
CAC of the Board Irrespective of CRG ^ Full Powers
^Subject to ultimate lending rate not falling below bank Repo rate.
Page 21 of 212
(b) Canara Mortgage
CGM/GM-HO-CAC – For all Reduction upto a maximum of 1.50% p.a. from

borrowal accounts/ proposals applicable rate, subject to the ultimate lending rate not
upto CGM/GM HO-CAC powers falling below RLLR + 1.00%
ED-CAC Reduction in Rate of Interest up to RLLR
Extent of reduction in
Risk Grade
CAC of the Board ROI
Irrespective of CRG ^ Full Powers
(ii) Delegation of Powers for permitting concession in ROI in respect of Non-CRG linked
PM
Mortgage based loans i.e Canara Rent & Education Loan:
3
:5
upto CGM/GM HO-CAC powers falling below RLLR + 1.00%.
04
Reduction in ROI below RLLR upto *concession of 50bps
ED-CAC
i.e RLLR-0.50%
3
CAC of the Board ^Full Powers

02
^Subject to ultimate lending rate not falling below bank Repo rate
/2
(iii) Delegation of Powers for permitting concession in ROI in respect of CRG linked Non-
Mortgage based loans i.e Canara Vehicle 4-Wheeler (including Agriculturists & Green Wheels)
0
& Canara Budget:

/1
(a) Canara Vehicle 4-Wheeler (including Agriculturists & Green Wheels):

26

8

77
borrowal accounts/ proposals Reduction in Rate of Interest up to RLLR

upto CGM/GM HO-CAC powers
99
Risk Grade Extent of reduction in ROI

CRG-Prime & CRG-1 25bps from prevailing applicable
ED-CAC ROI

CRG-2 & CRG-3 50bps from prevailing applicable
ROI
CAC of the Board Irrespective of CRG ^ Full Powers
^Subject to ultimate lending rate not falling below bank Repo rate
Page 22 of 212
(b) Canara Budget:

upto CGM/GM HO-CAC powers falling below RLLR + 2.00%.
# *Concession upto a maximum of 75bps from applicable
ED-CAC
ROI
Extent of reduction in
Risk Grade
CAC of the Board ROI
Irrespective of CRG ^ Full Powers
#The above said concession in ROI shall be extended to group of employees of Institutions/
Organizations (Package under Canara Budget in all schemes).
PM
(iv) Delegation of Powers for permitting concession in ROI in respect of Non-CRG linked Non-
Mortgage based loans i.e Canara Vehicle 4-Wheeler loans to Firms/Companies:
3

:5
Reduction upto a maximum of 1.50% p.a. from
04
3
*Concession upto a maximum of 100bps from prevailing

ED-CAC
02
applicable ROI
CAC of the Board ^Full Powers

0 /2
* The above concession in RLLR for Retail loans shall remain same till the loan completes 3
/1
years from the date of the extending the said concession.

26
After completion of 3 years the extended concession shall stands withdrawn and prevailing
rate of interest as on date completion of 3-years shall be applicable.
8
(v) Delegation of Powers for permitting concession in rate of interest for other retail lending
77
schemes (i.e. except loans covered in (i), (ii), (iii) & (iv) above):
99

Reduction upto a maximum of 2.00% p.a. from
ED-CAC applicable rate, subject to the ultimate lending rate not
falling below RLLR + 1.50%
Beyond the above delegated powers, subject to the

CAC of the Board
ultimate lending rate not falling below RLLR.
Page 23 of 212
Note:
1. The above delegation for permitting concession in Rate of Interest is applicable for both new
and existing loans under Retail loans.
2. As per existing guidelines, ‘In case where the account is taken over by other Bank / FIs,
concessions in ROI/Charges extended for the last one year to be recovered before closure.’
This shall be part of the sanction conveying letter and accepted by the borrower.
3. Branches/Office to ensure that at any point of time, the ultimate lending ROI after extending
concession shall not fall below Bank’s Repo Rate.
48. ROLES & RESPONSIBILITIES OF ROs/COs FOR RETAIL LOANS SANCTIONED BY MID CORPORATE
BRANCHES (MCBS)/LARGE CORPORATE BRANCHES (LCBS):
 For any retail loans proposals pertaining to customer/s of MCBs/LCBs, Circle to

notify the nodal branch/specific branch as per customer request to
MCBs/LCBs.
PM
 All the retail loans from the customers of MCBs/LCBs shall be routed through nodal
branch/specific branch as per customer request notified by the concerned Circle
Office.
3
49. GUIDELINES FOR APPROVING THE BUILDER’S PROJECTS FOR HOUSING LOAN PORTFOLIO:
:5
 Details of the projects along with attested copies of the required documents of the project
04
are to be submitted by the Branches/RAHs as the case may be to the Regional Office for
RERA Registered Projects/Circle Office Non-RERA Projects.
 Regional Office (RERA)/Circle Office (Non-RERA) after thorough processing of documents,
Master LSR to be obtained & approved, decision shall be taken in approving the projects
3
and shall be communicated to RAH/Branches accordingly.

02
 Subsequent to Builder’s Projects approval, Regional Office (RERA)/Circle Office (Non-RERA)

to send the copy of approved LSR along with list of documents to be obtained for creating
/2
valid Mortgage if loans are sanctioned in the project.

 Builder’s Projects for Housing loan portfolio shall be approved by the Regional Head-CAC
0
for RERA Registered Projects/Circle Head-CAC for Non-RERA Projects.

/1
 In case, number of Housing units financed in a particular project exceeds 25% of the
total units, prior clearance shall be obtained from GM/CGM-HO-CAC for further lending
26
under the said project.

 Project approval charges shall be observed by Regional Offices/Circles Offices, as the case
may be.
8
 Project approving authority shall explore the possibilities of getting RERA registered Escrow
77
account opened with our Bank.
In addition to the above, guidelines to be adhered for approval of RERA Registered & Non-
99
RERA Housing Projects as under:
Branches/RAHS/MOs:
 Branches/RAHs/ Marketing Officers to visit the Builder’s projects, collect the required
information and prepare a report as per Annexure- B of HO Cir IC/530/2023.
 Have a regular contact with local CREDAI/Builders’ associations to know the latest
information about new projects/Builders etc.
 In case of RERA registered projects, RERA registration certificate to be obtained.
 Good liaison is to be maintained with approved builders and their Marketing team for
getting maximum proposals and applicable Service charges are to be paid promptly.
 Wide publicity is to be given regarding approval of the Builder Projects and required
applications/Pamphlets/Posters/ Banners (as the case may be) are to be arranged at
Page 24 of 212
Project site.
 It should be ensured that the builders also give wide publicity regarding our Approval
in their Brouchers/Hoardings/Website etc.
Regional Offices (RERA Registered)/Circle Offices (Non-RERA registered):
 Ensure that the Builder is not in RBI defaulters list and is having satisfactory Credit
information.
 Finance only houses/ flats built by builder of repute. Due diligence of builders is
conducted and a negative list is prepared so as to avoid sanctioning of credit facilities
to the ventures floated by builders with doubtful credentials.
 Master LSR for the project approval to be obtained and the same to be approved by
R&L section, Regional/Circle Office after ensuring obtention of statutory
approvals/permissions as per local guidelines and clear marketable title.
 To submit the particulars of Builders and their approved project to R A Wing for
publishing in our web site for information to public. To submit the updated data at
frequent intervals for additions and deletions of the Builders on an ongoing basis.
 Regional Offices have to submit the performance of Projects approved on Quarterly
PM
basis before 15th of successive quarter to Circle Offices.
 Circulate the list of approved builders among all branches and monitor receipt of
proposals from builders and their disposal.
 Advise RAHs/Branches to collect minimum charges for LSR on no profit/no loss basis.
3
 Safe keep and maintain the documents obtained from the builder in a nodal centre/RAH
:5
and to give necessary guidance to Branches/RAHs to handle the proposals by obtaining
additional documents required if any as suggested by Advocate to create valid EMT.
04
 To approve the Builders automatically who obtained Project Finance from the Bank and
to get substantial share of proposals to our Bank.
 To ascertain that (Directions of Mumbai High Court –Incorporated in RBI Master
3
Circular):
02
(a) the builder / developer / company would disclose in the Pamphlets / Brochures
etc., the name(s) of the bank(s) to which the property is mortgaged;
/2
(b) the builder / developer / company would append the information relating to
mortgage while publishing advertisement of a particular scheme in newspapers /
0
magazines etc.
/1
(c) the builder / developer / company would indicate in their pamphlets / brochures,
that they would provide No Objection Certificate (NOC) / permission of the mortgagee
26
bank for sale of flats / property, if required.

 To issue approval in the standardized formats as per Annexure C of HO Cir IC/530/2023.
8

77
****
99
Page 25 of 212
CHAPTER II. POLICY ASPECTS ON RETAIL LENDING:
Housing Loan and Vehicle Loan are the two major constituents of Retail Loan book of our Bank.
Our bank, from time to time has come out with various products to suit the needs of targeted
groups based on the feedback from our Branches/RAHs /customers.
Each of the above schemes will have separate sets of guidelines on eligibility, quantum of
assistance, method of assessment, rate of interest, repayment terms etc.
1. Norms for lending to priority sector:
Housing:
i) Loans to individuals up to Rs.35 lakh in metropolitan centres (with population of ten lakh
and above) and loans up to Rs.25 lakh in other centres for purchase / construction of a
dwelling unit per family provided the overall cost of the dwelling unit in the metropolitan
centre and at other centres should not exceed Rs.45 lakh and Rs.30 lakh respectively.
PM
(ii) Housing loans to banks’ own employees will not be eligible for classification under the
priority sector.
(iii) Housing loans which are backed by long term bonds are exempted from ANBC, banks should
not classify such loans under priority sector.
3
:5
(iv) Loans up to Rs.10 lakh in metropolitan centres and up to Rs. 6 lakh in other centres for
repairs to damaged dwelling units conforming to the overall cost of the dwelling unit.
04
(v) Bank loans to any governmental agency for construction of dwelling units or for slum
clearance and rehabilitation of slum dwellers subject dwelling units with carpet area of not
3
more than 60 sq.mtr.

02
(vi) Bank loans for affordable housing projects using at least 50% of FAR/FSI for dwelling units
with carpet area of not more than 60 sq.mts.
/2
(vii) Bank loans to Housing Finance Companies (HFCs), approved by NHB for their refinance,
0
for on-lending for the purpose of purchase/construction/ reconstruction of individual dwelling

/1
units or for slum clearance and rehabilitation of slum dwellers, subject to an aggregate loan
limit of Rs.20 lakh per borrower.
26
Bank loans to NBFC (Other than MFIs) for on-lending:

8
Housing: Enhancement of the existing limits for on lending by HFCs from Rs.10 lakh per
77
borrower to Rs.20 lakh per borrower.
Under the Bank loans to NBFC for on-lending model, banks can classify only the fresh loans
99
sanctioned by NBFCs out of bank borrowings, on or after 13.08.2019. However, loans given by
HFCs under the existing on-lending guidelines will continue to be classified under priority
sector by banks.
Education:
Loans to individuals for educational purposes, including vocational courses, not exceeding Rs
20 lakh will be considered as eligible for priority sector classification. Loans currently
classified as priority sector will continue till maturity.
Page 26 of 212
2. Product Details: The prevailing Retail Lending products in the Bank are:-
Sl.No. Name of the Scheme Product Code
1 Housing Loan- General, Housing Cum Solar 619
Loan, Canara Kuteer, Canara Home Loan
Super Gain(CASA)
2 Housing Loan to Corporates (Discontinued) 632
3 Home Improvement Loan (Discontinued), 618
Rain Water Harvesting
4 Housing Loan CRE 627
5 Canara Home Loan plus 629
6 Canara Home Loan Secure 631
7 Housing Loans to Agriculturist 661
8 Housing Loan to NRIs 662
9 Canara Vehicle 603
10 Canara Vehicle to Agriculturist 636
11 Canara Budget 626
12 Canara Rent 606
PM
13 Canara Mortgage 605
14 Canara Site 620
15 Teacher's Loan 609
16 Canara Pension 607
3
17 Canara Solar 623
18
19
Canara Jeevan
Swarna Loan :5 625
608
04
20 Canara Cash 602
21 ESOP Scheme 617
22 ESOP NRI Employees' Scheme 617
3
23 DRI 685
02
24 Education Loan 651/654/655/656

/2
 The detailed guidelines on Retail loans have been enumerated in Bank’s Manual of
Instructions on Retail Loans updated till 28.02.2023 and subsequent circulars issued till
0
date.
/1
 Each of the above schemes will have separate sets of guidelines on eligibility, quantum of
assistance, method of assessment, rate of interest, repayment terms etc.
26
 Based on the scheme wise performance analysis, Bank may vary the extent of emphasis to
promote a particular scheme or modify the scheme guidelines in line with the strategies.
8
Based on the need and market requirements, new products may be introduced or
modifications to the existing schemes effected. Bank shall encourage the schemes, which
77
show lower delinquency and higher linkages to productive sector.

99
3. HL NP CRE (Commercial Real Estate):

For all Housing Loans Sanctioned for 3rd unit and above classified under HL NP CRE
(Commercial Real Estate), Rate of Interest chargeable for 3rd unit is 0.25 bps & 4th and
subsequent is 0.50 bps above Card Rate Applicable to all Housing Loan variants). The same
has to be opened under 627-product code.
i) Where housing loan is granted for purchase of site and construction of house thereon, the
borrower should start construction of the house within a maximum period of twelve months
from the date of disbursement of the house loan.
ii) ROI as applicable to Canara Site to be charged after the expiry of the maximum period
permitted, from the date of disbursement till the start of construction.
Page 27 of 212
This stipulation is required are to be incorporated in the sanction letter and conveyed to the
borrower. In exceptional cases, CAC of BOARD is authorised to waive penalty and grant more
time for construction of house.
Exposures, which should be classified as CRE:
The housing loans extended in cases where houses are rented out need to be treated
differently. As per Basel II Framework, loans secured by a single or small number of
condominium or co-operative residential housing units in a single building or complex also
fall within the scope of the residential mortgage category and national supervisors may set
limits on the maximum number of housing units per exposure. Therefore, such loans need
not necessarily be classified as CRE Exposures. However, if the total number of such units is
more than two, the exposure for the third unit onwards may be treated as CRE Exposure
as the borrower may be renting these housing units and the rental income would be the primary
source of repayment.
Commercial Real Estate – Residential Housing (CRE-RH):
PM
A separate sub-sector viz., Commercial Real Estate – Residential Housing (CRE-RH) has been
carved out from Commercial Real Estate sector.
Loans to builders/ developers for residential housing projects (except for captive consumption)
under CRE segment. Such projects shall ordinarily not include non-residential commercial real
3
estate.
:5
Integrated housing projects comprising of some commercial space (e.g. shopping complex,
school etc.) can also be classified under CRERH, provided that the commercial area in the
04
residential housing project does not exceed 10% of the total Floor Space Index (FSI) of the
project.
However, the following will not be classified under CRE-RH, but will be classified as CRE:
3
- In cases where the FSI of the commercial area in the pre-dominantly residential
02
complex exceeds the ceiling of 10%.
Bank Finance to Real Estate including Housing Projects:

0 /2
As regards financing of land acquisition by banks, banks may extend finance to public agencies
and not to private builders, for acquisition and development of land provided it is a part of
/1
the complete project including development of infrastructure such as water systems, drainage,
26
roads, provision of electricity, etc. Where land is acquired and developed by State Housing
Boards and other public agencies, banks may extend credit to private builders on commercial
terms by way of loans linked to each specific project.
8
Banks may issue guarantees to private builders favouring Government departments

77
towards External Development Charges and Internal Development Charges for

development of land.
99
However, banks are not permitted to extend fund based or non-fund based facilities to private
builders for acquisition of land even as part of a housing project.
Bank finance can be granted to individuals for purchase of a plot, provided a declaration is
obtained from the borrower that he intends to construct a house on the said plot, within such
period as stipulated by the Bank (currently 18 months).
Exposures NOT to be treated as CRE:
If the repayment primarily depends on other factors such as operating profit from business
operations, quality of goods and services, tourist arrivals etc., the exposure shall not be
counted as Commercial Real Estate.
Page 28 of 212
Guidelines based on RBI Circular DBOD.Dir.BC.No.93 /08.12.14/ 2010-11 dated 12.05.2011 Reg
Adoption of National Building Code (NBC)/National Disaster Management Authority
Guidelines (NDMA) as under:
The National Disaster Management Authority (NDMA), Government of India has formulated
guidelines on ensuring disaster resilient construction of buildings and infrastructure financed
through banks and other lending institutions. The NDMA has observed that in the context of
disaster resilience there are certain critical gaps and the guidelines aim at addressing these
gaps in the current process of approving the loan applications.
RBI has advised Banks to adopt the NDMA guidelines and suitably incorporate them as part of
loan policies, procedures and documentation. Accordingly, the following guidelines shall be
adhered to:
I. For all types of Real Estate Exposures of Rs.1 Cr. and above including Housing Loans:
a) Guidelines are applicable for all types of Housing Loans and finance to Builders of Rs.1 Cr.
and above.
b) Confirmation from the borrowers, Architect/Structural Engineers as to the approval of the
plan by the competent local authorities and adherence to the specification of NBC/NDMA
PM
guidelines.
c) On completion of the building, confirmation from Architect/Structural Engineers along with
that of the borrower that they have adhered to all guidelines/safety standards of NBC/NDMA
apart from constructing as per the approved plan.
3
:5
II. For all types of Real Estate Exposures of less than Rs.1 Cr. Including Housing Loans:
a) Confirmation from the borrowers Architect/Engineers as to the approval of the plan by the
04
competent local authorities.
b) Certificate from the Architect/Structural Engineers of the borrower, confirming adherence
to the approved plan.
3
02
In case of individuals, Bank to insist only the approved plan by the Competent Authority and
confirmation from the borrower/s/Architect/Engineer that they have adhered to the building
plan.
0 /2
4. Co-Lending by Banks and NBFCs (including HFCs) to Priority Sector:

/1
Co-lending arrangement is through the master agreement entered with the reputed NBFCs.
The terms will be decided as per agreement between Bank and NBFC. The terms of master
26
agreement shall contain relevant policy guidelines. Bank will take its share of the individual
loans on a back-to back basis in their books. NBFCs shall be required to retain a minimum of
20 per cent share of the individual loans on their books.
8
Bank may sign Master Agreement with multiple NBFC’s and the agreement may be area,
77
cluster, state specific or on pan India basis depending on the reach of NBFC and objective
slated to achieve with the tie up.
99
The Master Agreement entered into by the Bank and NBFCs for implementing the CLM may
provide for the bank to either mandatorily take their share of the individual loans as originated
by the NBFCs in their books, or to retain the discretion to reject certain loans after due
diligence.
Detailed guidelines in regard is provided in LDGM 24/2020 dated 10.12.2020 and LDGM
2/2021 dated 24.02.2021.
5. Digital Lending Framework:

The purpose/objective of this framework is to define and provide enabling Mechanism for
accepted practices, requirements, responsibilities and procedures for End to End Digitalized
lending under Retail, MSME or any other credit products/ portfolio. Each credit wing shall
Page 29 of 212
undertake lending activities/products under digital lending with due internal approvals within
the Credit Risk Management Policy and Other related/applicable Policies.
For detailed guidelines on Digital Lending Framework, refer LDGM No.29/2020

dt.11.12.2020.
6. Pricing of credit:
Vide notification dated DBR.DIR.BC.NO 14/13.03.00/2019-20 dated 04.09.2019, RBI has

instructed all the Scheduled Commercial Banks to link all new floating rate personal or Retail
loans (housing, vehicle, etc.) and floating rate loans to Micro and Small Enterprises extended
by banks with effect from October 01, 2019 to external benchmarks. Accordingly, Bank vide
HO Cir 501/2019 dated 30.09.2019, has linked all new MSME and Retail Loans extended from
01.10.2019 to Repo Linked Lending Rate (RLLR). Existing MSME and Retail loans/advances
based on the BPLR / Base Rate / MCLR system may continue to run till their maturity/renewal,
except where customer opts to move to RLLR. Existing borrowers under MSME and Retail will
have the option to move to the RLLR at mutually acceptable terms.
PM
7.Policy on takeover of Retail loans - TAKEOVER OF BORROWAL ACCOUNTS FROM OTHER
BANKS/FINANCIAL INSTITUTIONS:
In view of the scheme specific nature of the Retail loans, policy guidelines are specific to
3
certain retail lending schemes. Accordingly, policy guidelines in respect of retail loans
:5
extended only to individuals for non-business purposes have been formulated. In case of loans
other than to individuals under the retail loan schemes viz., Housing Loan, Canara Rent, Canara
04
Mortgage loans (where mortgage of property is involved), the existing guidelines on takeover
as enumerated in the Credit Risk Management Policy shall be applicable. In other words, these
guidelines shall be applicable only for personal loans for non-business purposes granted under
3
retail lending schemes.

02
7.1. APPLICABILITY:
/2
a. All individual Loans extended for non-business purposes by other banks/FIs with similar
terms and conditions of our schemes viz. Housing Loans, Canara Rent, Canara Mortgage. In
0
respect of takeover of proposals meant for business purposes, these guidelines shall not be
/1
made applicable and in such cases the existing take over guidelines shall be applicable.
26
b. Prior to take over, the account should have satisfactory conduct with the transferring bank
for a minimum period of 1 year. The credit history of last one year should indicate satisfactory
repayment of the loan promptly on due dates for a minimum period of 6 months, or
8
alternatively, the minimum Risk Grade of the borrower shall be CRG-3.

77
All Housing loans and Canara Mortgage loans given to individuals which are eligible as per
their respective scheme guidelines can be taken over by our Branches/Offices irrespective of
99
period run, provided, the minimum qualifying Risk Grade of CRG-3 (Moderate Risk). Loans
where projects are not completed and not fully disbursed shall not be taken over. However,
compliance of other respective scheme guidelines shall be ensured scrupulously.
All Housing loans and Canara Mortgage loans given to individuals which are eligible as per
their respective scheme guidelines can be taken over by our Branches / Offices Repayment
period should be restricted to the residual tenor of the loan at the transferor bank except in
respect of Lease Discounting proposals where extended repayment period may be permitted
provided, the minimum qualifying Risk Grade of CRG-3 (Moderate Risk).
c. Loans where projects are not completed and not fully disbursed shall not be taken over.
Page 30 of 212
7.2 In case of takeover of TOP up loan along with Housing Loan:
Takeover of top-up loan along with Housing Loan to be considered under Canara Home Loan
Plus scheme subject to period of the Housing Loan run at Banks/FIs, by fulfilling the following
conditions:
i. If it is within 3 years period, registered sale deed value to be considered for the purpose of
reckoning LTV for takeover of Outstanding Loan liability.
ii. In case, 3 to 5 years period, increase with a cap of 25% of registered sale deed value or
realizable value of fresh valuation, whichever is less to be considered.
iii. In case of above 5 years period, existing guidelines shall continue i.e., realizable value of
fresh valuation will be considered to arrive LTV. Any takeover loan, there should not be any
deviation in sanction – Terms & conditions. All other sanction terms and conditions should be
complied.
7.3 Eligible Institutions:
PM
i. All Public Sector Banks/ Private Sector Banks.
ii. Loan accounts of salaried/non salaried class of borrowers from NBFCs/HFCs.
ECAI rating of NBFC/HFC shall be A and above, where takeover of loans from non-salaried
borrowers are entertained.
3
Taking over loans from salaried class borrowers from NBFC/HFC/RRB can be considered
:5
irrespective of the ECAI rating of the NBFC/HFC Loan accounts of salaried / non
salaried class of borrowers from NBFCs/HFCs.
04
iii. Eligible accounts from Co-operative Banks may also be permitted for takeover by Circle
Head CAC subject to eligibility in terms of Credit history and Credit scores
iv. Where takeover of loans from non-salaried borrowers are entertained ECAI rating of
3
NBFC/HFC shall be A and above, duly ensuring that proper due diligence is made and that
02
assessment by the NBFCs is acceptable and confirm to the scheme parameters and
policies. The EMT documents shall be obtained and ensured through a legal scrutiny report
/2
on the enforceability.
No deviations from our policy guidelines to match the due diligence of NBFC shall be
0
allowed.
/1
v. Takeover of loans for salaried class borrowers from NBFC/HFC/RRB can be considered
irrespective of the ECAI rating of the NBFC/HFC.
26
vi. Eligible accounts from Co-operative Banks may also be permitted for takeover by Circle
Head CAC subject to eligibility in terms of Credit history and Credit scores.
vii. Takeover of Housing Loan accounts from Regional Rural Banks.
8
viii. Eligible accounts from Co-operative Banks may also be permitted for takeover by
77
Circle Head CAC subject to eligibility in terms of Credit history and Credit scores.
99
NOTE: While taking over accounts from NBFC/HFC/RRB, following guidelines shall be adhered
to:
Proper due diligence is made.
Assessment by the NBFC/HFC/RRBs is acceptable and conforms to scheme parameters
and policies.
The EMT documents shall be obtained and ensured through a Legal Scrutiny Report on
the enforceability.
Prior to take over, the account should have satisfactory conduct with transferring
NBFC/HFC/RRB for a minimum period of 1 year.
Minimum qualifying risk grade of CRG:3 of the borrower is ascertained.
No variations from the policy guidelines to match the due diligence of NBFC shall be
allowed.
Page 31 of 212
Standard Operating Procedures (SOP):
 No dilution in security value and it should be as per Registered/Sale Deed value.
 Approved Plan from respective authority to be made available.
 To ensure mortgage is put through as per our Housing Loan scheme guidelines.
 Approval of LSR from our Panel Advocate.
 Valuation certificate from the approved panel valuer to be obtained.
 Salary account to be maintained or Salary mandate to be obtained.
 ECS mandate to be registered.
 Latest Salary certificate/Income Tax return/ assessment order to be obtained for
ascertaining repayment capacity.
 Pre/post-sanction inspection to be conducted by the Bank authorities.
 Securities offered to the previous lender shall be invariably passed on the Bank for the
proposed exposure in respect of takeover.
 Account to be monitored closely.
7.4 TAKEOVER OF LOAN ACCOUNTS OF SALARIED CLASS OF BORROWERS:
Takeover of Retail Loans from NBFCs/HFCs (irrespective of the rating by ECAI) for Salaried
PM
Class.
Sanctioning Authority:
 Minimum qualifying Risk Grade is up to CS:2 (Low / Normal Risk) to be permitted by RAH
Head and above authorities.
3
 Risk Grade with CS:3 (Moderate Risk) to be permitted by RO Head CAC and above
authorities.
:5
04
7.5 TAKE OVER OF LOAN ACCOUNTS OF NON SALARIED CLASS OF BORROWERS:
NON SALARIED CLASS: are eligible to be taken over from NBFCs/HFCs (rated externally as A
and above) in addition to salaried class borrowers.
3
Delegation of power: CO Head CAC and above authorities subject to the following
02
conditions:
a. Proper due diligence is made.
/2
b. Assessment by the NBFCs is acceptable and conforms to scheme parameters and policies.
c. The EMT documents shall be obtained and ensured through a Legal Scrutiny Report on the
0
enforceability.
/1
d. Prior to take over, the account should have satisfactory conduct with transferring NBFC/
HFC for a minimum period of 1 year.
26
e. Minimum qualifying Risk Grade of CS-3 (Moderate Risk) of the borrower.

f. No deviations from the policy guidelines to match the due diligence of NBFC shall be
allowed.
8
g. All other guidelines on takeover shall remain unchanged.

77
7.6 TAKEOVER OF HOUSING LOANS FROM REGIONAL RURAL BANKS:
 Takeover of Housing Loans from Regional Rural Banks can be permitted by Regional Head
99
CAC with minimum qualifying Risk Grade is up to CS:2 (Low/Normal Risk).

 Risk Grade with CS:3 (Moderate Risk) to be permitted by Circle Head Level CAC and above
authorities up to their delegated powers.
7.7 TAKEOVER OF HOUSING LOANS FROM CO-OPERATIVE BANKS:

Eligible accounts from Co-operative Banks may also be permitted for takeover by Circle Head
CAC subject to eligibility in terms of Credit history and Credit scores.
The securities offered to the previous lender shall be invariably passed on to the Bank for
exposure to be taken over. However, minimum margin, security coverage and LTV ratios as
per extant guidelines of our Bank are to be ensured in all cases without fail, as a pre-sanction
exercise itself. In case of additional exposure, Bank may insist for additional collateral security
depending upon the merits of the case.
Page 32 of 212
7.8 Delegated Authority for Takeover Loans:
For Takeover of Borrowal accounts please refer HO Cir IC/104/2023 dt.14.02.2023 on
Delegation of Powers: Chapter-3  Point no.3.5.2 (guidelines as and when issued by RM Wing
Risk Management Wing, Head Office – Bangalore).
7.9 Repayment:
Repayment period should be restricted to the residual tenor of the loan at the transferor bank
except in respect of Lease Discounting proposals where extended repayment period may be
permitted. [HO CIR 366/2022].
7.10 Documentation:
Fresh documentation shall be completed before take over. Where transfer of securities and /
or mortgaged property from the transferor bank is involved, it shall be ensured that the
securities are chargeable and/ or mortgageable in favour of the Bank and expeditious steps
shall be taken to create charge on the security.
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In respect of schematic lending schemes, the existing guidelines to be continued. However,
residual repayment period should not be enhanced (except Lease Rent Discounting proposals).
Letter from transferor bank regarding handing over of the documents directly to us shall be
3
obtained.
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NOC/Consent letter need not be insisted from other banks/Financial Institutions. Validity of
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the sanction shall be as per the extant guidelines.
7.11 Reporting:
3
Circles shall collect and report the details of accounts taken over under these guidelines to
02
CA&M Wing on monthly basis. In turn, CA&M Wing shall place an information note to CRMC on
quarterly basis.
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7.12 Variation:
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In case of Takeover of credit proposals by the Bank from any Bank where any of our Whole
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Time Directors (WTDs) have worked earlier, CGM/GM-HO-CAC, upto their delegated powers
shall be empowered to sanction takeover of credit proposals from any Bank where any of our
26
Whole Time Directors (WTDs) have worked earlier with specific reasons justifying the need for
taking over the accounts. No other authority below CGM/GM-HO-CAC is empowered to sanction
the same. Prior clearance need not be obtained. Convenor of CGM/GM-HO-CAC has to place a
8
consolidated monthly information note before the Board of Directors on all such cases
77
permitted by CGM/GM-HO-CAC without fail.
In case of proposals beyond the delegated powers of CGM/GM-HO-CAC, the proposal shall be
99
put up to the MC of the Board for sanctioning and to the Board of Directors for clearance
with specific reasons justifying the need for taking over the accounts. The same cannot be
treated as variation.
7.13 Other Guidelines:

1. OPL from the transferor Bank / FI may be waived by the Sanctioning Authority duly verifying
the relevant documents, viz., Pass Sheet of loan account, and establishing that the account
with the transferring bank is regular and standard. This condition is to be recorded specifically
in the Sanction Memorandum.
2. KYC/Due diligence and eligibility for the loans are to be ensured before take over.
Page 33 of 212
3. Takeover proposals should be entertained selectively on merits, taking into account the
quality of the account, past dealings and creditworthiness of the party, repayment record with
the other banks and not as a matter of routine. Also, the borrower should be well known to
the Bank / properly introduced to the Bank.
4. Reasons for switch over shall be ascertained and should be justifiable and genuine.
5. All accounts should be standard without any overdues / no rephasement and restructuring
should have taken place. The said guidelines shall also be applicable to the retail loans which
are restructured under RBI resolution framework 1.0 and 2.0 for exposure under stress due to
COVID-19. The takeover of restructured retail loans shall not be permitted as variation.
Discrete enquiries should be made before entertaining the proposal and Branch head should
satisfy about the conduct of account at transferor branch.
6. In respect of Retail Loans where moratorium under COVID-19 regulatory package has been
availed between March 1, 2020 and August 31, 2020, such retail loans can be considered for
takeover subject to the following:
i. No authority below RAH Head/RO Head can permit takeover of retail loans. Delegated
powers for takeover of retail loans as applicable shall be adhered to.
ii. Wherever Government Guarantee is available, the same shall be obtained before
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disbursement during takeover of loan.
iii. Quarterly review by next authority to be done in all such accounts.
iv. Data of such takeover of accounts shall be submitted by Circles to CAM Wing on quarterly
basis.
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v. Credit Monitoring Wing has to monitor such taken over accounts and submit a quarterly
note to Executive Director.
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7. Need based additional loan may be permitted based on proper due diligence and assessment
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and perfection of security creation. The same is to be released only after taking over the
liability. The end use of the loan is to be ensured.
8. Before disbursing the loans, Branch/RAH Head along with another Official has to first inspect
3
the property concerned and make proper enquiries to verify the identity of its owner/s. The
02
inspection reports thus prepared should be submitted to the Sanctioning authority separately
by the officials who have conducted such visit.
9. Sanction letter / modified sanction letter, if any to be obtained and scrutinized.
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10. One year pass sheet with sanction letter to be verified to ascertain about conduct of
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account.
11. Credit information from the transferor bank and also satisfactory credit information Report
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from credit Information Agencies shall be obtained.

26
12. Minimum margin, Security coverage and LTV ratios as per guidelines to be ensured without
fail as a pre-sanction exercise itself.
13. Minimum NTH norms to be adhered without any deviation.
8
14. The loan proceeds shall be directly sent to the Bank/ Institution from whom the liability is
77
being taken over.

15. Before disbursing the loans, Branch/RAH head along with another Official has to first
99
inspect the property concerned and make proper enquiries to verify the identity of its owner/s.
16. The inspection reports thus prepared should be submitted to the Sanctioning authority
separately by the officials who have conducted such visit.
17. In case of Takeover of credit proposals by the Bank from any Bank where any of our Whole
Time Directors (WTDs) have worked earlier, CGM/GM-HO-CAC, upto their delegated powers
shall be empowered to sanction takeover of credit proposals from any Bank where any of our
Whole Time Directors (WTDs) have worked earlier with specific reasons justifying the need for
taking over the accounts. No other authority below CGM/GM-HO-CAC is empowered to sanction
the same. Prior clearance need not be obtained. Convenor of CGM/GM-HO-CAC has to place a
consolidated monthly information note before the Board of Directors on all such cases
permitted by CGM/GM-HO-CAC without fail.
Page 34 of 212
In case of proposals beyond the delegated powers of CGM/GM-HO-CAC, the proposal shall be
put up to the MC of the Board for sanctioning and to the Board of Directors for clearance
with specific reasons justifying the need for taking over the accounts. The same cannot be
treated as variation.
18. If the prospective borrower clears the outstanding liability with the other bank or
institution fully out of their own sources & approaches our bank for credit facilities after 3
months from the date of above closure, such proposals shall be kept outside the purview of
takeover norms and related stipulations. Bank shall obtain the details of dealings with the
bank/financial institution in such cases also and satisfy itself about the operations.
However, the above stipulation of 3 months need not be insisted for Retail loans. Retail shall
not be treated as takeover, provided there is a cooling period (i.e. from the date of the
prospective borrower clearing the loan with the other Bank/Financial Institution) of atleast 10
days.
19. In respect of Takeover proposal involving both enhancement in existing limits and
concession in Rate of Interest / Service Charges including multiple concessions shall be
sanctioned only by Next Higher Authority falling upto powers of circle Head CAC. In respect of
the proposal falling beyond the power of circle Head CAC, the respective sanctioning
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authorities shall permit such sanction.
7.14 Guidelines in case of taken over accounts under all Housing Loan Variants and
Additional Guidelines for Canara Budget scheme exclusively for Canara SB Premium Payroll
3
package (Gold, Diamond & Platinum Variants) customers:
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(i) In case of takeover of all Housing Loan Variants (excluding Housing Loan to Agriculturists &
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NRIs) for Canara SB Premium Payroll package (Gold, Diamond & Platinum Variant) customers,
Circle Head-CO-CAC & above authorities are delegated with discretionary powers for
permitting matching Rate of Interest upto lowest prevailing Rate of Interest under Housing
3
Loan as under:
02
Delegated Authority Risk Grade Rate of Interest

*Match ROI prevailing at other
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Circle Head-CO-CAC & above Bank/FIs but not below ROI up to

Upto CRG-3
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authorities lowest prevailing ROI i.e., (CRG-

Prime LR-I) of HL
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*Match ROI prevailing at other

CGM/GM-HO-CAC & above Bank/FIs but not below ROI up to
26
CRG-4
authorities lowest prevailing ROI i.e., (CRG-
Prime LR-I) of HL
* Match Rate of Interest irrespective of CRG rating and Slab wise amount.
8
In all other cases, Respective Sanctioning authority shall be delegated to permit the same as
77
per extant guidelines. Further, in respect of Rate of Interest, extant RLLR guidelines shall be
adhered accordingly.
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(ii) Waiver of processing charges and Absorption of Valuation & LSR Charges under all Housing
Loan Variants (excluding Housing Loan to Agriculturists & NRIs) for borrowal accounts switch
over from other Bank/FIs for customers canvassed under Canara SB Premium Payroll package
(Gold, Diamond & Platinum Variant) valid till 30.09.2023 as under:
 Waiver of Processing Charges

 Absorption of Valuation Charges & LSR Charges (including mark-up fee if applicable)
All other applicable charges shall be collected.
Page 35 of 212
Note:
a) Branches/Offices has to debit all the charges (i.e Valuation & LSR Charges including mark-
up fee) to be absorbed by the bank to the GC head – 420085562 – GC-TAKEOVER SC-
LSR/VALUATION FEES and to be credited to the Canara SB Premium Payroll account of the
borrower/s. Further, concerned Canara SB Premium Payroll account of the borrower/s has
to be debited on the same day immediately and shall be paid accordingly to Panel
Valuer/Advocate as per Bill/Invoice raised as per extant guidelines.
b) However, before crediting the applicable charges i.e (Valuation & LSR Charges) to the
Canara SB Premium Payroll account of the borrower/s due for payment to Panel
Valuer/Advocate, Branches/Offices to ensure that account should not be hold/debit
balance status. If any account is in hold/debit balance status, the same should be
regularized & further transaction to be initiated.
c) All other guidelines in respect of take over norms and respective scheme guidelines shall
be complied.
d) Branches/RAHs has to submit monthly report to respective Regional Office with individual
loan details and respective charges debited to GC before 5th of every month.
e) Regional Offices has to submit consolidate details to Circles before 10th of every month and
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Circles has to submit the consolidated data of circle to RA Wing before 15th of every month.
f) While making payments to different vendors/valuers/advocates existing guidelines
pertaining to TDS, GST shall be complied.
g) In case, borrower opts for switch over to any bank/financial institution in future,
3
Branches/Offices has to collect all the applicable charges from the borrower which were
waived during takeover.
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h) All other guidelines to the extent not modified shall continue.
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(iii) Additional Guidelines for loan accounts under Canara Budget scheme for customers under
Canara SB Premium Payroll package (Gold, Diamond & Platinum Variant) are as under:
3
While extending Canara Budget loans to Canara SB Premium Payroll package (Gold, Diamond
02
& Platinum Variant) customers, to repay/clear existing personal loan at other Bank/FIs the
following shall be ensured by the sanctioning authority:
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 In case of loans sanctioned based on salary credit under Canara Budget Prime (without
salary-tie up), Salary for the last 12 months shall be credited in the salary account
0
maintained at our Bank or any other Bank.

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 Respective Sanctioning authority shall ensure that, existing loan at other Bank/FIs shall
be standard and regular in nature while sanctioning the Canara Budget loan at our bank.
26
 Respective Sanctioning Authority can permit loan during the currency of the existing loan
with other Bank/FIs, subject to the following:
i. Within the overall ceiling fixed as per income of the borrower.
8
ii. The existing loan with other Bank/FIs shall be closed either from the borrower’s
77
own source or from the proceeds of the proposed Loan.

iii. Wherever, existing loan with other Bank/FIs is closed out of the proceeds of the
proposed loan, the same shall be clearly mentioned in the sanction.
99
iv. At any point of time, only one loan shall be outstanding under the scheme.
v. While calculating NTH, proposed Canara Budget loan EMI shall be included and
the existing loan EMI need not be included (as existing loan is getting
closed/cleared out of new loan proceeds).
 Branches/Offices shall strictly ensure that existing loan at other Bank/FIs is closed out
of proceeds of new Canara Budget loan sanctioned to the borrower at our Bank.
 If the proposed loan is not qualifying under Canara Budget schemes i.e Prime & Delight
norms, the same may be considered under general Canara Budget guidelines subject to
eligibility as per extant guidelines.
 All other Canara Budget guidelines shall continue.
Page 36 of 212
8. Qualifying Criteria:
Low value of individual exposures: The maximum aggregate retail exposures to one
counterpart should not exceed the absolute threshold limit of Rs.5.00 Crore. As per RBI
notification dated 12th October 2020, threshold limit of Rs.5.00 crore for aggregated retail
exposure to a counterparty is increased to Rs.7.50 crore effective from 12.10.2020.
The risk weight of 75 per cent will apply to all fresh exposures and also to existing exposures
where incremental exposure may be taken by the banks up to the revised limit of Rs.7.5 crore.
The exposure would mean sanctioned limit or actual outstanding, whichever is higher, for all
fund based and non-fund based facilities, including all forms of off balance sheet exposures.
In the case of term loans and EMI based facilities, where there is no scope for redrawing any
portion of the sanctioned amounts, exposure shall mean the actual outstanding.
9.Margin on advances against shares / issue of guarantees:

(i) A uniform margin of 50% shall be applied on all advances / financing for subscribing to IPO
/ issue of guarantees for Capital Market operations/ Advances against units of mutual funds
(except units of exclusively debt oriented mutual funds)/finance to market makers. In case of
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shares/ debentures held in DEMAT form, a minimum margin of 25% shall be maintained.
(ii) In the case of shares/convertible debentures held in dematerialised form, a minimum
margin of 25% should be maintained.
(iii) A minimum cash margin of 25% (within the margin of 50%) shall have to be maintained in
3
respect of guarantees issued by Bank for Capital Market operations favouring stock /
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commodity exchange.
(iv) Bank shall also comply with various regulatory restrictions on loans and advances against
04
shares. Modify as per Master policy Cir.no.430/2022 dt.04.07.2022.
10. Valuation of shares / debentures / bonds:
3
Shares / debentures / bonds should be valued at prevailing market prices when they are
lodged as security for advances.
02
11. Advances against units of Mutual Funds

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 Units of Mutual Funds which are listed / traded in stock exchange which have completed
0
the minimum lock-in-period stipulated in the relevant scheme shall be considered for
granting advances / loans. The units should be listed in the Stock Exchanges or
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repurchase facility for the units should be available at the time of lending. The amount
of advance should be linked to the Net Asset Value (NAV) or the repurchase price or
26
the Market Value (MV) whichever is less and not to face value of the units.
 The units issued by Mutual Funds relating to tax saving equity plans are not to be
treated as approved securities for the purpose of considering loans / advances since
8
they are not traded / listed in the stock exchanges.

77
 SEBI Approved Mutual Funds

 Advances should not be granted for subscribing to or boosting up the sales of
99
another scheme of the mutual funds or for the purchase of shares / debentures /
bonds etc.
Loans to Mutual funds:
Loans to Mutual funds by the banks granted to meet the temporary liquidity needs for the
purpose of repurchase / redemption of units within the ceiling of 20% of the net asset of the
scheme and for a period not exceeding 6 months, if extended to equity-oriented Mutual Funds,
will form part of banks' capital market exposure.
Page 37 of 212
12. Claims Secured By Residential Property:
a) Loan to Value (LTV) ratios, risk weights and provisioning for individual housing loans
sanctioned on or after 16.10.2020 and up to 31.03.2023 shall be as under:
LTV Ratio (%) Risk Weight (%) Standard Asset Provisioning (%)
Less than or equal to 80 35
>80 and less than or equal to 50 0.25
90
b) Loan to Value (LTV) ratios, risk weights and provisioning for individual housing loans
sanctioned on or after 07.06.2017 and up to 15.10.2020 shall be as under:
Category LTV Ratio (%) Risk Standard Asset
Weight (%) Provisioning (%)
Upto Rs.30 Lakh Less than or equal to 80 35
>80 and less than or equal 50
>Rs.30 lakh and Less than or equal to 80 35 0.25
upto Rs.75 Lakh
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>75 Lakh Less than or equal to 75 50
c) The Loan to Value (LTV) ratios and risk weights for individual housing loans sanctioned up
to 06.06.2017 shall be as under:
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Category LTV Ratio (%) Risk Weight (%) Standard Asset
Provisioning (%)
04
Upto Rs. 30 lakh Upto 80 35
>80 & upto 90 50
Above Rs. 30 lakh and Upto 75 35 0.40
3
up to Rs. 75 lakh
02
>75 &upto 80 50
Above Rs. 75 lakh Upto 75 75
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LTV ratio should be computed as a percentage with total outstanding in the account (viz.
0
Principal + accrued interest + other charges pertaining to the loan without any netting) in the
numerator and the realizable value of the residential property mortgaged to the Bank as
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denominator.
26
All other claims secured by residential property would attract the higher of the risk weight
applicable to the counterparty or to the purposes for which the bank has extended finance.
Restructured housing loans should be risk weighted with an additional risk weight of 25% to
8
the risk weights prescribed above throughout the period of loan.

77
Loans/exposures to intermediaries for on lending will not be eligible for inclusion under claims
secured by residential property but will be treated as claims on corporates or claims included
99
in the regulatory retail portfolio as the case may be.

As per HO CIR IC/414/2023 dated 04.05.2023:
LTV Ratio and Risk Weight in case of Housing Finance Scheme:
Existing guidelines Relaxed guidelines applicable till 31.03.2023
Category of Risk Weights Standard Asset Provision
Loans LTV % (%)
Ratios % LTV Ratio (%) Risk Weight Standard Asset
Up to Rs.30.00 < 80 35 Provisioning (%)
Lakh ≤ 80 35 0.25
>80 and < 90 50
Above Rs.30.00 <80 35 0.25 > 80 ≤ 90 50
Lakh & Up to
Rs.75.00 Lakh
Above Rs.75.00 < 75 50
Lakh
Page 38 of 212
MARGIN: (ON PROJECT COST)
In case of New House/ Flat & Old In case of Old
Amount of Housing Loan House/ Flat (Up to 10 Years Old) House/Flat
(> 10 Years old)
Up to Rs. 30.00 Lakh 10%
Above Rs. 30.00 Lakh & 20% 25%
Up to Rs. 75.00 Lakh
Above Rs. 75.00 Lakh 25%
13. Advances for Construction activities not eligible for finance:

Bank should not grant finance for construction of buildings meant purely for government/ semi
government offices, including Municipal and Panchayat Offices. However, Bank may grant
loans for activities which are refinanced by institutions like NABARD.
14. Policy guidelines on variations / exceptions made:

a) At times variations from the policy guidelines by way of considering proposals which are
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beyond the acceptable parameters and/or not complying with the guidelines / relaxations
provided in Credit Risk Management Policy may have to be made on justifiable reasons.
These are termed as variations from the policy guidelines.
b) Generally, such variations shall not be considered. However, in exceptional cases, variations
3
may be examined in borrowal accounts by Credit Approval Committees at Head Office, on
merits of each case with due justification for the same.
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04
c) The variations are classified as under:
MAJOR:
3
i. Variation in other than retail lending schemes viz., under eligibility norms, loan quantum
02
and margin, extent of security cover, policy guidelines linked to Risk rating, variation from
policy on hedging of FC exposures, variation from benchmark ratios/policy
parameters/moratorium in project appraisal.
/2
ii. Valuation, takeover norms.

0
MINOR:
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i. Variation under retail lending schemes, viz., eligibility, loan quantum and margin,
26
modification/waiver of documentation (other than standard loan documents) and variation in

repayment / moratorium period in retail lending schemes.
ii. Loan validity period/disbursement in tranches, conditions attached to
8
concessions/permissions, terms relating to collection of fee/service charges.

77
iii. The above variation may arise in loan proposals in general or any specific loan schemes in
particular.
99
d) The authorities empowered to permit variations are as under:
I. Corporate and MSME proposals, including Commercial Real Estate

 CGM/GM-HO-CAC may permit maximum of 2 variations in a proposal, including major
variations, falling up to their sanctioning powers.
 ED-CAC & CAC of the Board may permit maximum of 4 variations in a proposal, out of which
Major variations shall not exceed 2.
 Beyond the above, the variation proposal shall be placed before the MC of the Board for
prior approval/permission.
 The restriction on maximum number of variations, including major variations, does not
apply to sanctions by MC of Board.
Page 39 of 212
 In respect of proposals relating to Central & State Government entities and the co-
operative bodies constituted under special statutes, the CAC of the Board can permit any
number of variations, including major variations, for proposals up to its delegated powers.
II. Retail Lending Schemes and other priority credit, including agriculture:
 CGM/GM-HO-CAC may permit maximum of 2 variations in a proposal, including Major

variations, falling up to their sanctioning powers.
 ED-CAC may permit maximum of 4 variations in a proposal, out of which Major variations
shall not exceed 2.
 Beyond the above, the variation proposal shall be placed before the CAC of the Board for
prior approval/permission.
 The restriction on maximum number of variations does not apply to sanctions by CAC of
the Board.
III. General Guidelines:
 Proposals for permitting variations are to be placed to the delegated authorities for prior
permission before conveying the sanction.
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 Sanctioning authority for such exposures shall continue as per extant delegated powers.
15. PRE-PAYMENT PENALTY FOR PRE-CLOSURE OF TERM LOAN:
Foreclosure charges/pre-payment penalties shall not be charged in case of all floating
3
rate term loans sanctioned, for purposes other than business.
16. REJECTION OF CREDIT PROPOSALS:
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Rejection of proposals for educational loan is subject to concurrence of the next higher
authority.
Rejection of credit proposals by the branch level authorities shall be recorded in a register
3
(web based NB-139 package) maintained for this purpose, which shall be reviewed by the
02
controlling authorities visiting branches.

17. APPROVAL OF LSR:
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Branches are permitted to approve the LSRs irrespective of the nature and quantum of the
0
loan and the sanctioning authority who has permitted the loan. However, branches should take
/1
utmost care and caution while scrutinizing the documents tendered by the intending mortgager
vis-a- vis the LSR submitted by the panel advocate. The guidelines for approval of LSR by the
26
branches are detailed below.

i. In respect of all credit proposals under branch/RAH powers (including those falling under
the powers of Credit Manager/Senior Manager/CM/ AGM/ DGM in VLB/ELB/ LCB), the
8
respective sanctioning authority shall scrutinize and approve the LSR as per the checklist
77
provided for the purpose.

ii. In all other cases (i.e., in respect of credit proposals falling beyond the branch/RAH
99
powers), the LSR shall be approved by the branch-in-charge/RAH Head. (i.e. CM/AGM/DGM
in case of VLB/ELB/ LCB/RAH).
iii. Wherever LSR is to be approved by CM/ AGM/DGM in case of VLB/ELB/ LCB/ HUB functions
relating to scrutiny of LSR, preparation of checklist etc., shall be completed by the officials
looking after the advances portfolio (i.e., respective Officer/Credit Manager/Senior
Manager as the case may be) and place the same before such authority for approval.
In case any clarifications or guidance is required and if the LSR contains some qualifying
remarks/observations, the same may referred to their legal sections of Circles.
Page 40 of 212
18.GUIDELINES TO BE ADHERED FOR HOUSING LOANS FOR COMPLIANCE:
PRE-RELEASE AUDIT: (HO Circular 374/2023dated 20.04.2023)
Pre-release Audit is introduced to strengthen pre-disbursement monitoring of compliance to

sanction terms and conditions, obtention of stipulated collateral securities and ensuring
perfection of securities before disbursement. Pre-release Audit is expected to bring out any
deficiencies prior to disbursement of a loan as against such observations being made at the
time of post-disbursement monitoring or Credit Audit, which is carried out at a later stage.
Further, such a system facilitates rectification prior to disbursement thereby safeguarding the
interest of the Bank.
Further, enforceability certificate as per guidelines to be obtained from a panel advocate
other than the Advocate who had given the LSR at the time of Pre-release Audit.
Retail Lending facilities of Rs.5 Crore and above which are backed by mortgage
(prime/collateral).
CREDIT AUDIT: (HO Circular 374/2023 dated 20.04.2023)
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Credit Audit includes review of post sanction process, compliance status of large loans, pick
up early warning signals and suggest remedial measures, etc. it is conducted by External
Auditors / Internal Auditors.
3
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Credit Audit is applicable in all fresh sanctions, enhancements/ additional exposures exceeding
cut off limit of Rs 3.00 Crores and above (FB+NFB) within:
04
 Combined Limit (Working Capital (FB+NFB) + Term Loan) - Within 3-6 months from the date
of 1st disbursement.
3
02
 Term Loan - Within 3-6 months from the date of 1st disbursement and it shall be conducted
upon release of loan for the first time.
/2
In respect of accounts where additional facilities are permitted frequently, conducting of

0
Credit Audit is to be restricted to a maximum of two times in a financial year preferably with
a gap of 6 months between two audits.
/1
LEGAL AUDIT OF TITLE DEEDS:

26
Bank has introduced policy guidelines on conducting Legal Audit of title deeds and other
documents, in respect of large value loan accounts with credit exposure of 5 crore & above,
as part of regular audit exercise (RBIA) till the loan stands fully repaid.
8
The process of proposed Legal Audit envisages re-verification of title deeds with the relevant
77
registering authorities with respect to their genuineness and availability of the immovable
property as security to the Bank without further encumbrance, in respect of high value
99
exposures of 5 Crore and above.
The Legal Audit shall be done as a part of regular Inspection whenever it is conducted. The
job shall be allotted to the panel advocate by the concerned Circles. However, the advocate
who had given the LSR shall not be entrusted with the job of conducting Legal Audit of the
account concerned.
PERIODICITY OF CONDUCTING LEGAL AUDIT:
First Time: Each account / exposure of Rs.5 Crore and above (FB + NFB) shall be subjected to
Legal audit after 3 years of sanctioning or crossing of threshold limit of Rs.5 Crore.
Page 41 of 212
It is to be conducted during succeeding RBIA immediately after 3 years from the date of first
sanction or on crossing of the threshold limit of Rs.5 Crore.
Subsequent legal audits shall be conducted after a gap of 3 years from the date of first legal
audit. This shall coincide with succeeding RBIA due.
The gap between two legal audits shall be between 36 months and 54 months depending on
the risk rating of the branch in the subsequent RBIAs.
19. GENERAL GUIDELINES ON OBTENTION OF LSR (APPLICABLE TO ALL TYPES OF LOANS

INCLUDING RETAIL, AGRICULTURAL, MSME ETC.)
As per extant guidelines in respect of all mortgages, LSR is to be obtained from our panel
Advocate along with search report. Branches to ensure that the Advocate who provides LSR
has also furnished certified copy of latest sale deed obtained from Sub Registrar Office, which
confer the right to the mortgagor to create a valid mortgage along with LSR. Wherever 2 LSRs
are to be obtained (Where value of property is Rs.5 Cr and above) certified copy of latest sale
deed should accompany both LSRs.
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20. FREQUENCY OF VALUATION OF SECURITIES BY VALUERS IN BANK’S PANEL:
The fixed assets of the borrower, viz., land and building (other than agricultural property),
3
plant & machinery, etc. obtained as primary and/or collateral security should be subjected to
:5
valuation by competent valuers from the panel of valuers once in three years.
04
However, in respect of fixed assets (primary/ collateral) mortgaged to loan accounts (classified
as standard assets) under all Housing Loan variants, Canara Mortgage, Canara Rent, Canara
LRD, Canara Site & Education Loans where loan outstanding is Rs. 50 Lakh or above, revaluation
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of property has to be undertaken through the empanelled valuers once in every five years.
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Detailed guidelines have been enumerated in HO Cir 337/2021 dated 24.05.2021 and for
Education Loan revaluation of property has to be undertaken through the empanelled valuers
immediately after completion of moratorium. Further, guidelines on revaluation of securities
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mortgaged to Education Loans are available under Educative Series 17/2022 in CANNET under
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RA Wing Web Page.

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VALUATION OF ONLY THE LANDED PROPERTY WITHOUT ANY SUPERSTRUCTURE:

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If the security proposed for a facility is in the form of exclusive land properties/sites/ plots
without having any superstructure of usable building,
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i. The acquisition cost as per registered sale deed may be considered as cost of land, if it is
acquired within immediate preceding one year.
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ii. If the land is acquired / purchased beyond preceding one year, 85% of the Fair Market Value
assessed by the Bank’s approved Valuer should be taken as value of the land.
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iii. Branches/offices shall update the value of the immovable property once in three years.
Circle office should ascertain this information periodically, preferable once in a year, by
making informal market enquiries/ enquiries at the land registrar’s office and circulate it to
all Regional Office and Branched under their jurisdiction.
VALUATION OF PROPERTIES (LAND & BUILDING) OF Rs.5 CRORE & ABOVE:
Bank shall obtain minimum 2 independent valuation reports from 2 empanelled valuers in
respect of loan accounts where the value of individual property (Land and Building) obtained
as collateral for the loan is Rs. 5 crore and above. Bank shall adhere to the procedural
guidelines laid down in this regard:
Page 42 of 212
a. Of the 2 empanelled valuers entrusted with valuation, wherever possible, one valuer may be
selected from a place different from the other.
b. In the case of fresh proposals, the valuation as above shall be conducted before sanction of
loans. In the case of existing loans wherein the above has not been undertaken, valuation as
above shall be undertaken at the time when the next valuation of fixed assets is due as per
the existing policy guidelines and subsequently at the time interval of every 3 years.
c. In addition to the above, in case of need, Branches/Offices may seek second opinion from
valuer and advocate (other than from whom first opinion was obtained) in respect of high value
property and large borrowal accounts of Rs.5 Crore and above, with prior permission from the
Circle Office.
d. The required charges (including taxes, if any) for valuation by the two different empanelled
valuers shall be collected by the Bank from the borrower and remitted directly to the
empanelled valuer/s who conducted the valuation. It shall be noted that no payment is made
to the valuer by the borrower directly. Payment of Fee to the Valuer should preferably through
Savings / Current Account maintained with our bank.
e. While conveying the sanction, these clauses will have to be specifically incorporated in the
sanction memorandum. In the case of existing parties, the above revised norms shall be
informed to the borrower while getting the fixed assets valued as per the existing policy of
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the Bank.
VALUATION OF FIXED ASSETS:
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In case the immovable properties are recently purchased (12 months prior to the date of
valuation) and if the guideline value has been revised after the date of sale deed, then the
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purchase price as per the sale deed or the guideline rate, whichever is higher and not the
market value shall be reckoned as for arriving at the value of the property.
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The period for recent purchase shall be taken as 12 months from the date of sale deed.
3
In cases where the property is acquired by way of a Will / Gift Deed /Settlement deed recently
(within 12 months from the date of loan application) in such cases, Guideline Rate obtained
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from Registrar’s Office / Mandal Revenue Office shall be reckoned for valuation purposes.
If the property is acquired by way of Will / Gift Deed / Settlement deed beyond 12 months from
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the date of loan application), the extant guidelines on valuation of properties shall be adhered
to.
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This shall be a general guideline across all loan products of the bank where such valuation is
warranted.
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21. CUSTODY OF TITLE DEEDS/ LOAN DOCUMENTS:

Safe custody of loan documents and the title deeds shall be ensured and proper record shall be
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maintained in the prescribed register. Inspection and release of title deeds shall be as per
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procedures framed in this regard.

22. DELEGATION OF POWERS FOR PERMITTING REDUCTION IN ROI FOR RETAIL LENDING
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SCHEMES:
For Rate of Interest, please refer HO Cir IC/104/2023 dt.14.02.2023 Delegation of Powers:
Chapter-3Point 3.46.1 Point d & Chapter-8  Point no.17 (guidelines as and when issued
by RM Wing Risk Management Wing, Head Office – Bangalore).
23. Concessions on Retail Loan products during Retail Loan Festival:
Authority Particulars
CAC of the Concessional rate of interest on Retail Loan products besides
Board waiver/partial waiver of processing charges etc., during Retail Loan
Festivals.
Page 43 of 212
24. Review of sanctions under Retail Loans:
i. For review of sanctions, refer HO Cir. IC/374/2023 dt. 20.04.2023 on Credit
Review and Monitoring Policy for the FY 2023-24Chapter-IPoint V.1 & also HO Cir.
IC/104/2023 dt.14.02.2023Chapter 3Point no.3.15.1
ii. For detailed guidelines on Review of Long Term Retail Loans, refer HO Cir IC/412/2023
dt. 03.05.2023. The gist of the guidelines are as follows:
a. All Retail mortgage based loans with present exposure above Rs. 100.00 lakhs & all
Education loans backed by mortgage with present exposure above Rs.50.00 lakhs
shall be within the scope of the Review.
b. Each eligible Retail loan (Regular & standard) shall be reviewed within 2 years from
the date of first disbursement for the first time.
c. For loan accounts which have already completed 2 years from the date of first
disbursement, review of such accounts shall be completed within the stipulated
timelines i.e., within 15th June 2023, as a one –time review exercise.
d. No review charges shall be applicable for loan amount up to Rs.5.00 Cr.
e. In case, the CIR score of the borrower corresponds to “High Risk” as per the extant
PM
guidelines, then suitable action including review of pricing shall be done by the
original sanctioning authority by rating the account under CRG module.
Retail Monitoring Section, Retail Assets Wing shall be the “Nodal Section” for all
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the Branches/Offices as a one point reference.
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For Retail Terms loans above Rs.5.00 Cr, existing guidelines on Annual Review of
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Term Loans shall continue.
25. The definition of Close Relatives for Retail Lending schemes is as under:
Spouse, Father, Mother (including step-mother), Son (including step-son), Son's Wife, Daughter
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(including step-daughter), Daughter's Husband, Brother (including step-brother), Sister

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(including step sister).

26. TIME NORMS FOR DISPOSALL OF RETAIL LOAN APPLICATIONS:
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Applications are to be disposed off meticulously by adhering to time norms.

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Time Norms
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Nature of Credit Facilities Sanction at Branch/ Sanctions at Sanctions at

RAH Circle HO
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Housing Loan up to Rs.25Lakh 21 days 30 days 6 to 8 weeks

Housing Loan above Rs.25 Lakh 30 days 45 days 8 to 9 weeks
Canara Rent NA 45 days 8 to 9 weeks
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Canara Mortgage/Other NA 45 days 8 to 9 weeks

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Mortgage based loans

Canara Jeevan NA 30 days NA
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Canara Vehicle 7 days 15 days 2 to 3 weeks

Canara Budget 7 days 15 days 2 to 3 weeks
Teachers Loan 7 days 15 days 2 to 3 weeks
27. PROCESS TO BE FOLLOWED BY THE REGIONAL OFFICE / CIRCLE OFFICE FOR MONITORING
OF THE PROPOSALS FALLING UNDER THE BRANCH POWER:
1. Once the Branch receives the application complete in all respects and same shall be entered
in the LAPS package (wherever applicable). In case the proposal is not entered under LAPS
(for technical / operational reason) then same shall be entered with relevant details in the
Loan Applications Received and Disposal Register (NB -139) for inwarding of the Application
available under OLTS package. In case both the modes are not available then same shall be
entered in the manual register.
Page 44 of 212
2. Applicant will be issued ‘Token of Service” – an acknowledgment receipt – with the
acknowledgement number as per the extant guidelines.
3. Branch Manager to verify the Register to monitor disposal of applications received /pending
at the Branch on regular basis. Date and status of disposal of applications by way of sanction
/ rejection, if rejected the reasons there of, to be recorded in the register.
4. Copy of the NB-139 shall be generated electronically through LAPS/OLTS wherever
applicable and to be sent to Controlling office for review and follow up through electronic
mode (e-mail) only on fortnightly basis.
5. Reviewing Authority at Controlling Office shall scrutinize the same including Point of
Adhering to the time norms for disposal of application.
6. The controlling Office shall also scrutinize the same during Quarterly interface sessions /
Branch Visits.
7. Adherence to TIME NORMS shall form part of sanction review exercise.
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Page 45 of 212
CHAPTER-III GIST ON PRODUCTS UNDER RETAIL LENDING
1. Housing Loan General:

HOUSING FINANCE TO INDIVIDUALS:
PURPOSE OF THE LOAN:
Loan shall be considered for
a. Purchase of a ready built house / flat
b. Construction of house / flat.
c. Purchase of a site and construction of a house thereon (Composite Housing Loan). However,
loan for the purchase of only site shall not be considered. Further, in case of composite
Housing loans, utilization of loan amount for purchase of plot is restricted to 60% of
eligible/sanctioned loan amount under all Housing Loan variants.
d. Housing Loan can be sanctioned upto Rs.15.00 Lakh to Repairs/Renovations subject to

completion of three years from the commencement of the repayment date of the housing
loan.
PM
e. Under Expansion, Upgradation and Creation of Additional amenities housing loan can be
sanctioned under two components:
Component-1: For expansion of existing unit, upgradation & creation of additional amenities
3
for financing upto 75% of the project cost complying all other guidelines as applicable to
regular housing loans.
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Component-2: While sanctioning Housing Loans, Branches/Offices can include the cost of
furnishing (by way of fixed furnishing, immovable attachments/ enhancements) in the total
project cost with maximum upto 15% of the loan or Rs.50 lakh whichever is lower subject to
3
other conditions.
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Further, while sanctioning Housing Loans, Branches/Offices can include the cost of furnishing
(by way of fixed furnishing, immovable attachments/ enhancements) in the total project cost
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and loan component shall be maximum up to 25% of the housing loan or Rs.50 lakh whichever
is lower subject to the following:
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i. Minimum Gross Income of the applicant/s shall be Rs.12.00 lakh p.a.

ii. The total project cost of the House shall be Rs.100 lacs (excluding Component-II) and
26
above.
f. For acquiring second house/flat where the borrower is already having a house/flat with or
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without loan.
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a. Housing Cum-Solar:
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PURPOSE:
Loan to individuals for installation of Roof Top Solar Photovoltaic (PV) System along with our
Housing Loan.
The overall project under this scheme will consist of Two Loan components:
a. Housing Loan component: Include project cost of House.
b. Solar Loan Component: Include cost and installation of Grid Interactive Rooftop Solar
Photovoltaic (PV) Equipment
The maximum Benchmark cost of installation of Solar Component shall be Rs.1.20 lakh Per ONE
KW and maximum capacity shall be 10 KW with total project cost of Rs.12 Lakh with storage
battery and Rs.10.00 Lakh without storage battery.
Page 46 of 212
Type of residential sector CFA (as % of benchmark cost or cost discovered
through competitive process whichever is
lower)
Residential sector (maximum up to 3 kW 40% of benchmark cost**
capacity
Residential sector (above 3 kW capacity 40% UP TO 3 kW+ 20% for RTS system above 3 kW
and up to 10 kW capacity)* and up to 10 kW.
* Benchmark cost may be different in General Category States / UTs and Special Category
States / UTs i.e., North Eastern States including Sikkim, Uttarakhand. Himachal Pradesh,
Jammu & Kashmir, Lakshadweep & Andaman & Nicobar Islands. CFA shall be on benchmark
cost of MNRE for the state / UT or lowest of the costs discovered in the tenders for that state
/ UT, whichever is lower.
** The residential sector users may install RTS plant of even higher capacity as provisioned
by respective State electricity regulations; however, the CFA will be limited up to 10 kWp
capacity of RTS.
PM
Note: The consumer will pay only the balance amount, after excluding CFA portion, to the
empanelled vendor. The CFA will be released through DISCOMs to the empanelled vendor
after commissioning and inspection of RTS plant.
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Branches/Offices to refer MNRE site https://mnre.gov.in/solar/schemes -> GRID CONNECTED
for updates / guidelines related to Solar Rooftop units.
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i) Loans can be sanctioned along with fresh Housing Loan.
ii) Loans can also be sanctioned independently with subsisting Housing Loan if the track record
of the existing Housing Loan is good.
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b. Canara Kuteer-Housing Loan Scheme:

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PURPOSE:
 For acquiring a residential site and constructing a house thereon.
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 Acquisition and purchase of new or old dwelling units.

 Construction of house on already owned Site / plot.
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Components of Project Cost:

a. Cost of Land/Flat or Construction Cost
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b. Cost of Installing Solar Lighting System

c. Cost of ASTRA Smokeless Choola.
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c. Canara Home Loan Super Gain (CASA) Scheme:

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For purchase of House/flat/plot of land. Construction/extension/ repair/renovation of new/

second hand residential flat /house.
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Facility shall be made available to new as well as existing Home Loan (sanctioned / outstanding
amount) of Rs.20.00 Lakh and above.
Shall be eligible for benefit of interest:
i. a) Amount of loan must have fully disbursed AND
b) Servicing of 1st EMI fallen due as per sanction terms as on the date of linkage.
ii. The rate of interest applicable to the Saving Account will be configured as zero.
iii. The Bank will calculate Home Loan interest on the loan outstanding minus balance in the
linked Saving Account.
iv. Servicing of interest during moratorium period is applicable as per the Housing Loan Scheme
Guidelines.
Page 47 of 212
2. Housing Loan to Corporates: (Discontinued as per HO Cir. IC/434/2022 dt.05.07.2022)
PURPOSE:
a. Purchase of a ready built house/ flat.
b. Construction of house/ flat.
c. For taking over of housing loans from other finance companies / financial
institutions/Banks.
d. Loans for purchase of flats under construction can also be considered.
e. To provide Home Loans to Corporate Entities (Public & Pvt Ltd Companies, Partnership Firms
including LLPs) for construction/ acquisition of Residential Units in the name of the Company
for use by their Directors/ Promoters and their Employees.
f. Land purchase is not eligible in this product, hence only construction on own land is
permitted.
3. Home Improvement Loan (Discontinued w.e.f 14.02.2023)
PURPOSE:
PM
Loan to individuals for furnishing the house/ flat as under:
(i) Along with our loan to acquire/ construct house/ flat OR

(ii) Along with our loan to repair/ renovate house/ flat OR
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(iii) Independent of our loan mentioned in (i) & (ii) above.
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Loan can be made available under the scheme to purchase household furniture items,
refrigerator, fans, air conditioner/s, to put up wardrobes or any other household item/s.
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Such loans can be granted in the following cases too:
(i) Where a loan under Housing Finance Scheme was earlier obtained from us and the liability
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is still subsisting without overdues.

OR
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(ii) Where a housing loan has been obtained from other banks/ housing finance institutions.
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3. Rain Water Harvesting Loan:

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PURPOSE:
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Installation of Rainwater harvesting unit.

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Rainwater harvesting (RWH) is the process of collecting and storing rainwater in a scientific
and controlled manner for future use.
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To individuals constructing house, making modification of existing house

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4. Housing Loan CRE:

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PURPOSE:
For all Housing Loans Sanctioned for 3rd unit and above classified under HL NP CRE
(Commercial Real Estate), Rate of Interest chargeable is 0.25% for 3rd unit, 4th and
subsequent unit 0.50% above Card Rate (applicable to all Housing Loan variants).
Where housing loan is granted for purchase of site and construction of house thereon, the
borrower should start construction of the house within a maximum period of twelve months
from the date of disbursement of the house loan. ROI as applicable to Canara Site to be charged
after the expiry of the maximum period permitted, from the date of disbursement till the start
of construction. This stipulation is required are to be incorporated in the sanction letter and
conveyed to the borrower. In exceptional cases, CAC of BOARD is authorised to waive penalty
and grant more time for construction of house.
Page 48 of 212
5. Canara Home Loan Plus:
PURPOSE:
To meet domestic needs/medical expenses/educational expenses of children / dependents/

unforeseen contingencies etc., but not for speculative purposes.
6. Canara Home Loan Secure:
PURPOSE:
For funding the one time insurance premium payable to M/s Canara HSBC Life Insurance
Company Limited for availing their Group secure life insurance term plan to cover risk under
life and Total Permanent Disability for existing as well as new home loan borrowers.
All Canara home loan borrowers are eligible to opt for life insurance cover. This option will be
available to existing housing loan borrowers as well as to the new borrowers
PM
7. Housing Loan to Agriculturist:
PURPOSE:
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As applicable to General Housing loan Scheme.
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The property to be acquired should be non-agricultural, having valid documents for usage for
Housing/non-agricultural purposes and preferably, in Urban / Semi Urban and growing
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townships, i.e. loans should not be given for construction or purchase of houses on Agricultural
Lands.
Revised guidelines: Simple Mortgage can be put through by branches/offices only after
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obtaining permission from the following authorities:

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Sanctioning Authority Permitting Authority

Below RO Head CAC / Individual Authority RO Head CAC
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RO Head CAC and above Respective CACs

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Permitting Authority may seek views of Legal Section of Circle before permitting the above
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permission. However, the above guideline shall not be applicable to Agricultural loans.
a) They should be our existing customers and should have satisfactory dealings with us for the
26
last two years.

b) Their past dealings should be satisfactory.
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8. Housing Loan to NRIs:

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PURPOSE:
a. Purchase of a ready built house / flat.
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c. Purchase of a site and construction of a house thereon. However, loan for the purchase of
only site shall not be considered. In case of loan for purchase of plot & construction thereon,
utilization of loan amount for purchase of plot to be restricted to 60% of eligible/sanctioned
loan amount.
d. For undertaking repairs, renovation, upgradation, creation of additional amenities, subject
to the satisfaction of the Bank and monetary ceiling of Rs.15 Lakh.
e. For taking over of housing loans from other finance companies / financial institutions/
Banks.
f. For acquiring second house / flat where the borrower is already having a house / flat with
or without loan.
g. Loans for purchase of flats under construction can also be considered under the scheme
subject to securities stipulated.
Page 49 of 212
9. Canara Vehicle:
PURPOSE:
Two Wheelers: For purchase of brand new two wheelers. To all individuals (including
professionals and salaried class) who are credit-worthy and respectable.
Four Wheelers: For purchase of four wheeler including Jeep, Vans- Both brand New and Pre-
Owned Vehicles. To all the individual borrowers / professionals/ reputed firms/ Companies
meeting the following criteria.
10. Canara Vehicle to Agriculturist:
PURPOSE:
Purchase of Four wheelers (LMVs) of all types i.e., both Brand New & Pre-owned by
Agriculturists whose major Annual Income is from Agriculture. All agriculturists owning and
cultivating agricultural lands of more than 5 acres of irrigated lands/10 acres of dry lands in
their name/s.
PM
11. Canara Cash:
PURPOSE:
a. Loans / advances to individuals against approved shares / debentures / bonds / approved
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units of mutual funds.
b. To meet investment / domestic / personal requirement. It should be ensured that loan
should not be utilized for speculative purposes.
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Lending against prime security of shares and debentures is restricted to designated branches
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only.
12. Canara Budget Loan (TL / OD):

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PURPOSE:
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To meet any personal/domestic needs of the proposed borrower and not for speculative
purpose.
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All confirmed employees of:

a. Central/State Government. b. Reputed PSUs/Joint Stock Companies. c. Reputed
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Corporates/Public Limited Companies/Private Institutions. d. Lecturers/Asst.

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Professors/Professors of Colleges/ Research Institutes and Universities. i.e., IT/BT Companies.

26
The special schemes under Canara Budget have been formulated as under:
1. Canara Budget-Prime (with & without salary tie-up):
8
 To all the confirmed employees of Central Government/State Government/ Personnel

77
from Defence and Paramilitary Forces / PSUs & Autonomous Bodies of Central & State
Govt.
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2. Canara Budget-Delight (with salary tie-up only)

 To all the confirmed employees of Reputed Corporates/MNCs/ Public & Private Ltd.
Companies/Private Institutions/ Universities, Reputed Schools, Reputed Colleges,
Reputed Hospitals & IT BT Companies.
Additional Guidelines for loan accounts under Canara Budget scheme applicable for customers
under Canara SB Premium Payroll package (Gold, Diamond & Platinum Variant) to repay/clear
existing personal loan at other Bank/FIs subject to specific conditions.
Page 50 of 212
13. Canara Rent:
PURPOSE:
Canara Rent scheme for financing against rent receivables.
· To provide loan to owners (lessors) of property.
· Loans should be to meet business needs and/or other genuine personal needs of the owners
(lessor) but should not be for any speculative purpose whatsoever.
· The property should be one leased / rented out to PSUs / Central / State / Semi Govt.
Undertakings, reputed Corporate, banks, financial institutions, insurance companies and
MNCs, including the property leased / rented out to our Bank’s branch / office or house /
flat leased / rented out to the Bank as quarters to our officers / executives.
· Canara rent loan should not be sanctioned in cases, where lessor and lessee belong to the
same group.
· The loan under this scheme may be granted in rural/semi urban places, where the property
(premises) is leased out to our Bank/other Nationalized Banks/PSUs/Reputed
corporate/MNCs and Central/State/Semi Govt. undertakings.
· In case the tenant is a Corporate, external rating of the tenant need not be insisted.
However, Sanctioning Authority has to ensure from the financial statements of the
PM
tenant/Lessee that the cash flow is sufficient to take care of the payment of monthly
rentals.
14. Canara Mortgage:
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PURPOSE:
To provide loans against the security of mortgage of property (land & building) to the
04
individuals for non-business purpose only, for meeting any unforeseen expenses, urgent
personal and medical needs etc.
The loan amount shall not be used for any purposes which are speculative in nature. It is to be
3
ensured that the borrowers have regular source/s of income / adequate verifiable means to
02
repay the loan.

The loan amount shall be utilized for the purpose for which it is sanctioned and the purpose
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should be acceptable to the Bank. The end use of the loan is to be ensured to confirm that the
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loan has been utilized for the purpose for which is sanctioned.
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15. Canara Site

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PURPOSE:
a. Purchase of Residential Sites from State Development/Town Planning Development
Authorities or from any other body constituted by the Government for distribution of sites.
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b. Purchase of Residential Sites from statutory authorities of Central/ State Governments,

77
local authorities either exclusively or in partnership with private sector entities provided such
sites /layouts are duly approved by the statutory authority of the State Government and where
registrations can be effected.
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c. The land / plots of Government Development Authorities land such as DDA, HUDA etc.,
directly from authorities or under second sale. Further the plots in the colonies approved by
Govt. Authorities along with approved maps and RERA approved projects.
d. To takeover accounts from other banks subject to fulfilment of any of the above existing
purposes. Takeover norms as applicable in respect of Retail Loans under Housing Loan and
subsequent guidelines if any to be complied.
However, as per the Housing Loan take over norms, loans where projects are not completed
shall not to be taken over. In respect of Site Loan, as the loan is given for purchase of Site,
obtain only undertaking letter from the borrower for construction of the house within the
stipulated time (i.e., as stipulated by the development authorities while allotting the sites).
Page 51 of 212
16. Teachers Loan:
PURPOSE
purpose.
The loan to be sanctioned to confirmed teaching/non-teaching staff whose salary is being
credited in the financing branch
17. Canara Pension:
PURPOSE
Component-1: To meet the cost of medical expenses and other genuine personal needs of the
pensioners/Family Pensioners.
AND/ OR
Component-2: To make payment of premium of IBA Group Mediclaim Insurance Policy for
Retired Employees of our Bank/Family Pensioners of Retired Employees of our Bank who have
opted for and are covered under the scheme.
PM
18. Canara Solar:
PURPOSE:
For purchase & installation of Solar off grid (Photovoltaic and Thermal) system with necessary
3
accessories.
As a part of Intended Nationally Determined Contributions (INDCs), India has committed to
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increase the share of installed capacity of electric power from non-fossil-fuel sources to 40%
by 2030. Further, setting up of 4000 MW of Grid connected Rooftop plants in residential sector
04
with Central Financial Assistance (CFA).
19. Canara Jeevan:
3
PURPOSE
02
To meet the financial needs of Senior Citizens owning self-occupied residential property.
[Reverse mortgage loan is a loan that allows owners of residential properties to convert their
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home ownership into cash flows, for meeting their living and other expenses. Unlike mortgage,
which is generally used to secure finances, Reverse Mortgage converts a self-owned property
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into finance.]
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20. Swarna Loan:

26
PURPOSE
To meet medical expenses and other unforeseen commitments / contingencies and investment
purposes / domestic purposes.
8
Loans to individuals (Non-Priority) against the security of gold ornaments can be granted for
77
purposes such as meeting medical expenses and other unforeseen commitment / contingencies
etc.,
Loans can be granted under the scheme only at designated branches identified by the Circle
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Offices.
21. ESOP Scheme:
PURPOSE
Loan scheme to employees of the company to purchase shares of their own company under
ESOP scheme.
22. ESOP NRI Employees’ Scheme:
PURPOSE
To grant Rupee loan scheme to confirmed NRI employees of Indian companies to purchase
shares under Employees Stock Option (ESOP) scheme.
Page 52 of 212
23. DRI:
PURPOSE
The DRI scheme is basically meant to cater to the requirements of weakest among the weaker
sections, to help them in their efforts to better their economic conditions through small
productive ventures. Therefore, it should be our endeavour to identify these borrowers, assess
their requirements and ensure end use of credit provided.
24. EDUCATION LOANS:
The Educational Loan Scheme outlined below aims at providing financial support from the
banking system to meritorious students for pursuing higher education in India and abroad. The
main emphasis is that a meritorious student, though poor, is provided with an opportunity to
pursue education with the financial support from the banking system with affordable terms
and conditions.
The scheme aims at providing financial assistance on reasonable terms to the poor and needy
meritorious students to pursue higher education including professional/technical courses.
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Page 53 of 212
CHAPTER-IV: ANNEXURE-PRODUCT DETAILS
1. HOUSING FINANCE SCHEME: [PRODUCT 619]
1.1 Purpose of the loan:
Loan shall be considered for
a. Purchase of a ready built house / flat
only site shall not be considered. Further, in case of composite Housing loans, utilization of
loan amount for purchase of plot is restricted to 60% of eligible/sanctioned loan amount under
all Housing Loan variants.
d. Housing Loan can be sanctioned upto Rs.15.00 Lakh to Repairs/Renovations subject to
PM
completion of three years from the commencement of the repayment date of the housing
loan.
e. Under Expansion, Upgradation and Creation of Additional amenities housing loan can be
3
sanctioned under two components:
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Component-1: For expansion of existing unit, upgradation & creation of additional amenities
for financing upto 75% of the project cost complying all other guidelines as applicable to
04
regular housing loans.
Component-2: While sanctioning Housing Loans, Branches/Offices can include the cost of
3
furnishing (by way of fixed furnishing, immovable attachments/ enhancements) in the total
02
project cost with maximum upto 15% of the loan or Rs.50 lakh whichever is lower subject to
other conditions.
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0
/1
is lower subject to following:

26
i. Minimum Gross Income of the applicant/s shall be Rs.12.00 lakh p.a.

ii. The total project cost of the House shall be Rs.100 lacs (excluding Component-II) and
above.
8
f. For acquiring second house/flat where the borrower is already having a house/flat with or
77
without loan.
1.2 Eligibility:
99
Following categories of Individuals are eligible for Housing Loans:
2.i). Any salaried individual with 2 years aggregated regular and continuous service with a
minimum completed service of 6 months in the current organization/company.
Further, Respective Sanctioning Authority can permit 6 months break in service subject to the
following: i. Customer shall be employed in the Current (present) Company/ Organization for
a minimum period of 6 months.
ii. Minimum monthly Gross Salary in the present employment shall be Rs.1.25 lakh & Net Salary
ofRs.1.00 lac to be ensured.
iii. Minimum NTH of 30% or Rs.40000/- whichever is higher to be ensured.
Page 54 of 212
The relaxation in aggregated, regular and continuous service up to one year, subject to
minimum completed service of 6 months in the current organization/company can be
permitted by the following delegated authorities:
1. Proposals below RO-Head-CAC: RO-Head-CAC.

2.Proposals under RO-Head-CAC and above Authorities: Respective Sanctioning Authority up to
their delegated powers.
2.ii) Any individual engaged in business & self-employed persons like, doctors, chartered
accountants, architects and others. Such applicants should have been in the business for a
minimum period of 3 years. Details of business/ profession should be indicated in the
application. Restriction of minimum Business may be waived selectively by the following
authorities:
RAH Head/ RO HEAD- CAC/ AGM-CO-CAC up to their delegated powers and above sanctioning
authorities up to their delegated powers can reduce Minimum years of Business with a cap of
Minimum ONE year.
PM
The above relaxation is applicable to reduce minimum years of business only (not for ITR/ITAO
purpose).
Normally, the applicant should be a customer of our Bank with satisfactory dealings. However,
3
there is no bar/ restriction in financing a new customer. But, in such cases, the applicant
:5
should be properly introduced to the Bank and satisfy all the eligibility KYC norms.
04
1.3 Entry and Exit age of the Borrower:
Where entry and exit age of the Borrower/s or Co-borrower/s at the time of availing the
3
Housing loan, for the following cases:

02
1.3.1 - Case I:
/2
In case of entry age of the main borrower is less than 60 years and the loan is repayable within
75 years of age, the loan may be permitted by the Respective Sanctioning Authority up to their
0
delegated powers.
/1
1.3.2 - Case II:

26
Where entry age of the Borrower/s is 60 years & above and up to 70 years at the time of
availing the loan and repayable within 75 years, respective delegated authority shall sanction
8
housing loan jointly with Spouse or legal heir or close relative (in the absence of spouse or
77
legal heir) subject to complying of required NTH and repayment capacity of the borrower
amongst other housing loan scheme guidelines.
99
Wherever, NTH and repayment capacity of the borrower is not sufficient or for the purpose of
arriving loan quantum the income of earning spouse/legal heir/ close relative can be
considered subject to the following:
The loan shall be availed jointly with earning spouse/earning legal heirs only.
In case of non-existence of earning Legal heir/s, earning Close Relative/s shall join the loan
as joint borrower/s.
Sanctioning Authority has to ensure overall *repayment capacity of borrower/s along with
individual *repayment capacity of Legal heir/s or Close relative/s.
*i.e., minimum NTH of 25% or Rs.10000/-p.m. whichever is higher.
Page 55 of 212
1.3.3 - Case III:
If the entry age is up to and beyond 70 years and Exit age is beyond 75 years, the loan shall be
availed jointly with Spouse or legal heirs subject to complying of required NTH, repayment
capacity and all other housing loan scheme guidelines.
Such proposals shall be permitted by RAH Head and above authorities up to their delegated
powers subject to the following:
a) The loan has to be availed jointly with earning spouse/earning Legal heir only.
b) In case of non-existence of earning Legal heir/s, earning Close Relative/s to join the loan
as joint borrower/s.
In both the cases i.e., a & b, Sanctioning Authority to ensure adequate repayment capacity
[i.e., minimum NTH of 25% or Rs.10,000/-p.m. whichever is higher] of Legal heir/s or Close
relative/s, irrespective of Borrower/s NTH.
In addition to the above, overall NTH of 40% or Rs.20,000/- p.m. whichever is higher & the
PM
same may be further permitted up to 25% with a minimum of Rs.20,000/- p.m. by RAH Head
& above authorities up to their delegated powers selectively on case to case basis.
1.3.4 - Case IV:
3
:5
REPAYMENT PERIOD & NTH (earning youngest borrower/legal heir who is joining the loan as
Joint borrower):
04
The repayment period in respect of Housing Loans, can be decided based on the age of the
earning youngest borrower /legal heir who is joining the loan as joint borrower, provided
3
he/she has sufficient income to service the EMI with maximum repayment period up to 30
02
years.
Further, NTH for the youngest borrower/legal heir whose age is below 60 years, respective
/2
sanctioning authority to ensure minimum NTH of 25% or Rs.10000/-p.m. whichever is higher.

0
However, the exit age of the youngest borrower should not exceed 75 years. The respective
sanctioning authority can sanction by duly ensuring the repayment as mentioned above.
/1
1.4 Quantum of Loan:

26
Maximum Loan quantum is considered for

4.A. Salaried class: 72 times last drawn monthly gross salary (Regular income to be ascertained
8
by verifying previous 6 months’ salary slips).

77
For non- Salaried class: 6 times of annual gross income (Average of three preceding years
99
annual Income) i.e. the financial years immediately preceding the current financial year during
which the customer desires to avail housing loan.
Minimum percentage of Net Income/NTH to 25% (after meeting the instalment for the proposed
Housing Loan) at the time of availing the loan subject to the condition that the minimum
amount of Net Income/NTH quantum shall be stipulated at Rs.10,000/-
The above is subject to producing of documentary evidence regarding the Salary slips/annual
income (If abnormal increase is observed, during concluded financial year, as per ITR/ITAO,
sanctioning authority should ensure the authenticity and sustainability of the income) to be
permitted by the respective sanctioning authority up to their delegated powers.
Page 56 of 212
4.B. Salaried class: 84 times of last drawn monthly gross salary (Regular income to be
ascertained by verifying previous 6 months’ salary slips).
For non- Salaried class: Up to 7 times of annual gross income (Average of three preceding
year’s annual income)
In both the above cases the same may be considered very selectively, sanctioned by RAH Head/
RO HEAD RO-CAC and above authorities up to their delegated powers, subject to the following.
These stipulations are permitted only to Risk Grade- LOW & NORMAL customers/ borrowers.
25% NTH or Rs.20000/- whichever is higher should be maintained after meeting the existing &
proposed loan EMIs.
4.C. Salaried class: 96 times of last drawn monthly gross salary (Regular income to be
ascertained by verifying previous 6 months’ salary slips).
For non- Salaried class: Higher quantum up to 8 times of annual gross income (Average of three
preceding year’s annual income.
In both the above cases the same may be considered very selectively, sanctioned only to
customers/ borrowers having Risk Grade LOW by CO HEAD CO-CAC and above authorities up to
their delegated powers, subject to the following:
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i) 30% Net Take Home or Rs.20,000/- whichever is higher should be maintained after meeting
the existing & proposed loan EMIs.
ii) Customers who are purchasing property / Residential units viz., ready built house / flat,
3
Construction of house, Purchase of a site and construction of a house thereon from Metro and
:5
Urban CENTERS ONLY as most of Higher Cost of residential properties are coming from
surroundings (URBAN) of Metro centers having nearby vicinity.
04
Documentary proof regarding income – salary certificate in case of salaried persons and Income
Tax return / assessment orders or other documentary evidence should be obtained in the case
3
of individuals engaged in business / self-employed persons and others. Photo copies of the
documents are to be attested by the borrower and countersigned by the Manager. In the case
02
of agricultural income, such income is reported in the income tax return, the land records are
to be verified. In the case of business income, business position of the applicant to be verified.
/2
Depreciation can be added back to the total income for arriving loan quantum under Housing
Loan scheme subject to the following conditions:
0
a. The facility will be confined to Businessmen, Professionals, Self-employed (Who run the
/1
business/activity on Proprietorship concern).

b. Respective Sanctioning Authority will ensure verification of the movable Assets, over which,
26
depreciation is claimed by the applicant during pre-sanction inspection and a copy of report
to be kept on record.
c. Depreciation on movable assets as per CAPEX such as plant & machinery, furniture and
8
fixtures, computers etc., can be added back for arriving quantum subject to: “Maximum cap
77
of 20% for adding back depreciation and other income, if any (both put together) to add to
total income”.
d. In case if the sanction falls beyond RAH powers, RAH in charge/ credit manager to duly
99
ensure the pre-sanction inspection report and recommend the same to next higher authority.
e. Depreciation amount shall be ascertained on the basis of last - 2 Years ‘Audited Balance
Sheet’ of the Borrower. The latest Audited Balance Sheet should not be older than 9 months.
Wherever, Audited Balance Sheet is not mandatory/ applicable, latest Balance Sheet duly
certified by Chartered Accountant is to be obtained.
f. Depreciation to be added back to the net income shall be Average Depreciation during the
last 2 Years OR the depreciation during the Current Year, Whichever is lower.
g. The above facility shall be considered on selective basis, purely based on merits and can be
permitted only by the RAH Head and above authorities.
Page 57 of 212
1.5 NET TAKE HOME:
amount of Net Income/NTH quantum shall be stipulated at Rs.10,000/- & Rs.20000/-
respectively (based on the age criteria & quantum of loan) after meeting instalment for the
proposed HL and existing repayment commitments in all cases.
1.5.1: In case entry age of the Borrower/s is 60 years & above and up to 70 years at the time
of availing the loan and repayable within 75 years, in exceptional cases, with overall NTH of
40% or Rs.10,000/- p.m. whichever is higher & the same may be further relaxed up to 25% with
a minimum of Rs.10,000/- p.m. by RAH Head & above authorities up to their delegated powers
selectively on case to case basis.
1.5.2: If entry age is up to 70 and Exit age beyond 75 years & If the entry age is beyond 70
years and Exit age beyond 75 years, in exceptional cases overall NTH of 40% or Rs.20,000/-
p.m. whichever is higher & the same may be further permitted up to 25% with a minimum of
Rs.20,000/- p.m. by RAH Head & above authorities up to their delegated powers selectively
on case to case basis.
PM
Note: Any further relaxation/variations in NTH norms as stipulated above shall be permitted
by CGM/GM-HO-CAC & above authorities on case-to-case basis considering the merit of the
loan proposal.
3
:5
1.5.3: In addition to the applicant’s income, Income of spouse / children/parents/ siblings
may be considered for arriving at maximum loan amount subject to following conditions:
04
a) If the proposed property is held jointly with the spouse/ children/ parents/ siblings
then all the joint holders of the property should join as co-borrower, but in cases where
the property is held in single name of the borrower the spouse/children/
3
parents/siblings may join as co-borrower.

02
b) Co-borrowers should be employed/ engaged in business/ profession etc. for a minimum

period of one year and has a steady source of income evidenced by salary certificate,
/2
Form 16 or Income Tax Return. The prescribed NTH to be maintained by deducting EMIs
0
of existing & proposed loans.

/1
1.5.4: The changes are effective for first as well as to subsequent Housing Loans with the
following:
26
1.5.4.1: The proof of income like Salary Certificate/ITAO/any other related document
submitted to be cross verified to ensure its veracity.
8
1.5.4.2: The credit officer/branch head to further ensure the veracity of the salary certificate
77
by personally deputing the credit officer to the salary disbursing authority and suitable remarks
may be made by such visiting officer on the salary certificate. In case such verification is not
possible, branch head may satisfy himself.
99
1.5.4.3: Wherever SB/CA is not maintained at the Bank/branch, bank account / pass sheet of
the Bank/branch, where the party is maintaining the account for the last 6 months to be called
for / verified ( debits / credits in the account) and to be kept with the loan paper.
1.5.4.4: In the case of salaried individuals/businessmen/self-employed persons, the income
of the family may be taken into account, subject to documentary evidence, for the purpose
of computing the quantum of eligible amount of loan and subject to the family member joining
in execution of Loan documents.
1.5.4.5: In cases where family income includes the income of the applicant and the income
of spouse, children / parents/ siblings may be considered for arriving at maximum loan amount
subject to following conditions:
If the proposed property is held jointly with the spouse/ children/ parents/ siblings then
all the joint holders of the property should join as co-borrower, but in cases where the
Page 58 of 212
property is held in single name of the borrower the spouse/children/parents/siblings may
join as co-borrower.
Co-borrowers should be employed/ engaged in business/ profession etc. for a minimum
period of one year and has a steady source of income evidenced by salary certificate, Form
16 or Income Tax Return. The prescribed NTH to be maintained by deducting EMIs of
existing & proposed loans.
1.6 HOUSING LOAN BY WAY OF REIMBURSEMENT:
1.6.1 - CGM/GM-HO-CAC and above authorities are authorized to permit reimbursement within
their delegated sanctioning powers not exceeding 25% of the loan amount. This option should
be exercised judiciously and not as a matter of routine and only in exceptional cases.
The reimbursement is to be permitted subject to following conditions:
1.6.1.1: Reimbursement to be claimed within 3 months from the date of incurring the
expenditure.
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1.6.1.2: Reasons of reimbursement should be genuine and the sanctioning authority should be
fully convinced of end use, duly verifying the related documents i.e. vouchers/ receipts and
the same should be kept as record. The sanctioning authority should also carry out the
inspection of the property and record the same.
3
1.6.1.3: The branch-in-charge in respect of branches which are not attached to RAH and RAH
:5
head in respect of branches attached to RAH should also carry out the inspection of the
property and record the same.
04
Branches / offices to ensure that such payments are routed through Bank account in case of
ready built house/ flats.
3
02
1.6.1.4: A confirmation by the branch-in-charge /RAH head on the above aspects should be
forwarded to the sanctioning authority along with the proposal.
/2
1.7 MARGIN: (ON PROJECT COST)

0
In case of New House/ Flat & Old In case of Old

/1
Amount of Housing Loan House/ Flat (Up to 10 Years Old) House/Flat

(> 10 Years old)
26
Up to Rs. 30.00 Lakh 10%

Above Rs. 30.00 Lakh & 20% 25%
Up to Rs. 75.00 Lakh
8
Above Rs. 75.00 Lakh 25%

77
As per HO Cir 265/2022 dated 16.04.2022 the following guidelines are valid till
31.03.2023:
99
If any Housing Loan is to be sanctioned with reduced margin of up to 10% (i.e. LTV of ≤90%),
the same shall be sanctioned by Circle Head CAC (CGM / GM / DGM headed) and above
authorities up to their respective delegated powers, after satisfying the need for such
requirement.
The sanctioning authority, while permitting the relaxation shall amongst others examine the
standing of the party, marketability of the security, income adequacy of the borrower, etc.,
before permitting the sanction.
Branches / Offices shall note that the Housing Loan accounts with relaxed margin norms shall
be opened in CBS under scheme code “100110- HL Lower margin” under BAM 83 option.
Page 59 of 212
1.7.1 In case of Repairs & Renovation, Expansion of existing unit, Upgradation and creation
of additional amenities, a uniform margin of 25% on project cost irrespective of Housing Loan
amount.
1.7.2 The margin is stipulated on the total project cost.
In case of Housing Loans where Project Cost is up to Rs.10.00 Lakh, stamp duty, registration
Charges and other Documentation charges can be included in the Project Cost for the purpose
of stipulating Margin as well as for LTV Ratio.
In cases where project cost exceeds Rs.10.00 Lakh, maximum loan amount shall calculated on
the lower of the following values subject to compliance of LTV Ratio and margin.
i) Value mentioned in agreement for sale plus GST shall be added as part of Project Cost for
assessing the loan amount. However Stamp duty, Registration Charges and other
documentation charges, which are not realizable in nature shall not be included in project
cost for arriving at the loan eligibility.
&
ii) Current Market Value as per the latest Valuation report.
1.7.3 If the borrower has already purchased the land out of his own sources then, the related
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registered purchase consideration only be considered (i.e. stamp duty, registration charges
and other documentation charges shall not be included as a part of margin).
1.7.4 Margin should be contributed by the borrower before disbursement of the loan.
However, sanctioning authority may in deserving cases permit prorate contribution of margin
3
and the total margin should be contributed before the final disbursement of the loan.
1.7.5 LTV Ratio and Risk Weight in case of Housing Finance Scheme:
:5
04
Existing guidelines Relaxed guidelines applicable till
Category of Risk Standard Asset Provision 31.03.2023
Loans LTV Weights % (%)
LTV Ratio (%) Risk Weight Standard
3
Ratios %
Up to Rs.30.00 < 80 35 Asset
Provisioning
02
Lakh >80 and < 50

90 (%)
Above Rs.30.00 <80 35 0.25
Lakh & Up to
≤ 80 35 0.25
Rs.75.00 Lakh > 80 ≤ 90 50
/2
Above Rs.75.00 < 75 50

Lakh
0
1.8 RATE OF INTEREST:

/1
1.8.1 As advised by HO from time to time.

26
1.8.2 While conveying sanction communications, branches should specifically indicate the
linkage to our RLLR. This should clearly mean that the rate of interest on the loan concerned
is applicable till the next reset date, irrespective of changes in the Bench mark during the
8
interim. Future reset date shall be determined accordingly.

77
It shall be made clear in the sanction that the applicable RLLR shall be as on the date of First
disbursement of credit facility.
99
1.8.3 For all Housing Loans Sanctioned for 3rd unit and above classified under HL NP CRE
(Commercial Real Estate), Rate of Interest chargeable is 0.25% for 3rd unit, 4th and subsequent
unit 0.50% above Card Rate (applicable to all Housing Loan variants). The same has to be
opened under 627-product code.
i) Where housing loan is granted for purchase of site and construction of house thereon,
the borrower should start construction of the house within a maximum period of twelve
months from the date of disbursement of the house loan.
ii) ROI as applicable to Canara Site to be charged after the expiry of the maximum period
permitted, from the date of disbursement till the start of construction.
Page 60 of 212
This stipulation is required are to be incorporated in the sanction letter and conveyed to the
borrower. In exceptional cases, CAC of BOARD is authorised to waive penalty and grant more
time for construction of house.
As per RBI/2009-10/151 DBOD.BP.BC.No.42 / 08.12.015/ 2009-10 September 9, 2009 All

Commercial Banks (excluding RRBs) Guidelines on Classification of Exposures as Commercial
Real Estate (CRE) Exposures
Exposures, which should be classified as CRE.
condominium or co-operative residential housing units in a single building or complex also fall
within the scope of the residential mortgage category and national supervisors may set limits
on the maximum number of housing units per exposure. Therefore, such loans need not
necessarily be classified as CRE Exposures. However, if the total number of such units is more
than two, the exposure for the third unit onwards may be treated as CRE Exposure as the
borrower may be renting these housing units and the rental income would be the primary
source of repayment.
PM
1.9 REPAIRS / RENOVATIONS:
A uniform sanctioning powers of up to Rs.15.00 lakhs is fixed to all Circles irrespective of Metro
Circles or others for Housing Loans sought for repairs and renovation and the same shall be
3
sanctioned after completion of three years from the commencement of the repayment
date of the housing loan.
:5
However, documentary proof like, estimate by qualified/ approved architect/engineer shall
04
be produced by the applicant and the loan amount should be realistic.
1.9.1 Under Expansion, Upgradation and Creation of Additional amenities housing loan can
3
be sanctioned under two components as under:

02
Component-1:
Branches/RAHs can consider Housing Loan proposals for expansion of existing unit, upgradation
/2
and creation of additional amenities for financing up to 75% of the project cost up to their
delegated powers (without any ceiling on quantum).
0
/1
Branches / RAHs have to comply with all other guidelines as applicable to regular housing
loans.
26
Component-2:
While sanctioning Housing Loans, Branches/Offices can include the cost of furnishing (by way
8
of fixed furnishing, immovable attachments/ enhancements) in the total project cost with
77
maximum up to 15% of the loan or Rs.50 lakh whichever is lower subject to the following:
i. Loan limit under this component shall be sanctioned along with Housing Loan only.
99
ii. Estimate from the qualified/ approved architect/engineer shall be produced.

iii. LTV ratio norms, Margin norms shall be applicable as per prevailing Housing Loan guidelines.
iv. In HL sanction, the loan component shall be shown separately.
v. Disbursement shall be made in two tranches only after completion of the creation of
MODTD/mortgage of the property /security (Housing Loan).
vi. Repayment period shall be as applicable to housing loan and single loan account shall be
opened in the system.
is lower subject to complying the following:
Page 61 of 212
a) Minimum Gross Income of the applicant/s shall be Rs.12.00 lakh p.a.
b) The total project cost of the House shall be Rs.100 lacs (excluding Component-II) and
above.
Branches / RAHs have to comply with all other guidelines as applicable to regular housing
loans.
1.10 CONCESSION IN INTEREST RATES:
Any proposal for concession in interest below the prevailing rates shall be taken up with Retail
Assets Wing, Head Office.
1.11 SECURITY:
1.11.1 The loan shall be secured by the following:
1.11.2 In the case of construction/purchase of a house/flat, creation of amenities,

upgradation, repairs, renovations, and expansion, the house property shall be mortgaged to
the Bank.
PM
1.11.3 In case of purchase of a house/ flat, where EMT thereof is not possible for any valid
reasons beyond the control of the borrower, suitable collateral security in the form of NSC/
KVP, bonds, Bank Deposit should be obtained. Competent sanctioning authority may
specifically waive the same on a case-to-case basis subject to:
3
:5
a. The borrower offering mortgage of other commercial / house property situated in urban/
Semi- urban or metropolitan area as the case may be equal to the loan amount of the Bank.
04
OR
b. Offering suitable guarantor good for the amount of the loan, preferably salaried persons.
3
The mandate to deduct the periodical installments and interest from the salary of the borrower
02
/ guarantor should be lodged with their employer/s.

1.11.4 In respect of purchase of flats under construction, mortgage is to be put through by
/2
obtaining the appropriate documents. A notice intimating the lien of the Bank over the flat
under construction should be sent to the builder. Where mortgage is not possible, the following
0
collateral securities with margin mentioned therein against should be obtained unless
/1
specifically waived by the competent sanctioning authority.

26
A Term Deposit of No Margin. The value of deposit should be equivalent to the loan amount.
our Bank
B NSC/ KVP No margin. Face value of the NSC should be equivalent to the loan amount
C LIC Policy Surrender value of the policy should be equivalent to the loan amount
8
D Approved shares 50% i.e. the market value of the approved securities should be at least two times
debentures the quantum of loan amount. In this case, the maximum quantum of loan
77
permissible will be Rs 20.00 Lakh in case of Demat Shares (in case of Individuals)
E Other alternate The market value of the property should be atleast equivalent to the loan
99
Properties amount.
1.11.5 In respect of Housing Loans for purchase of flats under construction, wherever tripartite
agreements are obtained and if putting through mortgage is not immediately possible,
permission is accorded to waive stipulation relating to obtention of collateral securities by the
sanctioning authority subject to the following:
(a)In case of projects where RERA registration is applicable, sanctioning authority has to ensure
that such project is registered under RERA/WBHIRA (for West Bengal).
(b) In case of projects where RERA registration is not applicable, (i.e.,where the plot size is
below 500 Sq.mtrs and not having more than 8 units) such projects need not be approved by
the Bank.
(c)In case of states where RERA registration is not mandatory/ applicable Builder Approval
shall be obtained as per existing guidelines.
Page 62 of 212
Obtention of LSR, due-diligence etc., shall continue.
Further, the respective sanctioning authority can waive obtention of third party guarantee on
case to case basis.
1.11.6 In addition to the above securities, relevant papers and agreements connected to
purchase of flats should also be taken and kept along with loan papers. Appropriate loan paper
applicable to the nature of collateral should be obtained.
1.11.7 Upon completion of the flat and putting through the mortgage (EMT), these Collateral
securities could be permitted to be withdrawn by the borrowers.
1.12 AGE OF HOUSE/FLAT:

Sanction of Housing Loan extended for purchase of house/flat which is more than 20 years
old may be permitted by CM of Branch/RAH Head and above authorities in respect of
proposals falling up to their delegated sanctioning powers.
If the proposal falls within the delegation of DM of RAH where the proposal is being processed
PM
at RAH or CM of the Branch from where the proposal is originated or Scale-IV or Overseeing
executive of respective Regional Offices / Circle Offices have to inspect the house property
and certify the acceptability.
3
The House/ flat of above 40 years shall be permitted by CO- HEAD-CAC & above authorities
:5
up to their delegated powers.
04
The residual life of the property must be 10 years more than the repayment end date in all
the case.
3
1.13 DELEGATION OF POWERS FOR HOUSING LOANS NOT CLASSIFIED AS COMMERCIAL

02
REAL ESTATE (Rs. In Lakh)

Individual Authority/ CACs Sanctioning Powers
Branches headed by Scale I 10*
/2
1. Branches headed by Scale II 15*

0
2. Credit Manager in VLBs/ELBs

1. Branches headed by Scale II 30*
/1
2. Senior Manager in VLB/ELB

26
3. Manager/Senior Manager in RAH**

CMs of ELBs/CMs of VLBs 50*
DM-RO-CAC#/ DM-CO-CAC# 100
8
AGMs of Branches 100*

77
DM of RAH (Not Heading) 100

DM /AGM in RAH(Heading) 200
AGM-RO-CAC/ AGM-CO-CAC 300
99
DGM Heading Branches*/ DGM-RO-CAC 400

DGM-CO-CAC 400
CGM/ GM–CO-CAC 500
CGM/GM-HO-CAC Above Circle Head CAC up to 1000
ED-CAC Above 1000
*No powers to Sanction Housing loans at branches.
** In the absence of CM/AGM(RAH), the Credit Manager/ Senior Manager of RAH can exercise
sanctioning powers up to their delegated powers only.
# DM-RO-CAC/DM-CO-CAC is not in existence as per extant guidelines.
Page 63 of 212
Proposals beyond the powers of Credit Manager / Senior Manager of RAHs shall be placed to
next higher authority at RO/CO for decision, as the case may be.(Chapter-3 Delegation of
Powers Point 3.22.4 (ii))
1.14 ADDITIONAL DOCUMENTATION TO ELIMINATE FINANCING AGAINST UNAUTHORIZED
CONSTRUCTIONS:
1.14.1. Housing loans for construction:

1.14.1.1. In cases where the applicant owns a plot/land and approaches for a credit facility,
a copy of the sanctioned plan issued by the competent authority in the name of the person
applying for such credit facility should be obtained before sanctioning the loan. In case of
financing for purchase of flats the sanctioned plan issued by the competent authority in the
name of developer/ land owner to be obtained before sanctioning the loan.
1.14.1.2. An affidavit-cum-undertaking must be obtained from the person applying for such
credit facility that he shall not violate the sanctioned plan, construction shall be strictly as
per the sanctioned plan and to obtain completion certificate within 3 months of completion of
construction, failing which the bank shall have the power and the authority to recall the entire
PM
loan with interest, costs and other usual bank charges.
1.14.1.3. Obtain a certificate from panel Architect / panel Civil Engineer at various stages of
construction of building (after - foundation, roof level and completion) that the construction
of the building is strictly as per sanctioned plan.
3
:5
1.14.1.4 After completion of the construction a copy of the completion certificate duly
attested by panel Architect / panel Civil Engineer should be obtained.
04
1.14.2. Housing loan for purchase of constructed property / built up property:
1.14.2.1. For financing purchase of built up house / flat, obtain a copy of the sanctioned plan
3
issued by the competent authority in the name of seller/earlier owner / developer / land
02
owner, as the case may be before sanctioning the loan.

1.14.2.2. Obtain an affidavit- cum-undertaking from the borrower declaring that the built up
/2
property has been constructed as per the sanctioned plan and / or building bye-laws and
wherever applicable, the borrower should also submit a completion certificate.
0
/1
1.14.2.3. Panel Architect / Panel Civil Engineer must also certify before disbursement of the
loan that the built up property is strictly as per sanctioned plan and / or building bye-laws.
26
Further, Branches/Offices to note that, no loan should be given in respect of those properties,
which fall in the category of unauthorized colonies, unless and until they have been
regularized, and development and other charges paid.
8
Also, no loan should be given in respect of properties meant for residential use but which the
77
applicant intends to use for commercial purposes and declares so while applying for loan cost
of the Affidavit, certificates etc., should be borne by the borrower/s. The additional
99
documents stipulated above should be preserved along with the loan documents.
Branches to ensure that the above conditions are communicated to the borrowers as sanction
terms against due acknowledgement.
1.15 IN THE CASE OF PURCHASE OF FLAT, THE FOLLOWING DOCUMENTS SHOULD BE

SUBMITTED:
a. Original Sale Deed executed by the Builder in favour of the Purchaser.
b. If the original sale deed is not returned by the office of the Sub-Registrar, a certified
copy of the same may be accepted. (Duly certified by the Sub-Registrar as “True Copy”)
c. Original Registration Receipts.
d. Original Stamp Duty Receipts, if any.
e. Original receipts issued by the builder in favour of the Purchaser of the Flat.
Page 64 of 212
f. Certified copy of the approved plan.
g. Certified copy of the Building commencement certificate.
h. Title certificate issued by the Solicitor / Panel Advocate.
i. NOC from the Builder.
j. Confirmation of the lien from the Builder.
k. Architect’s certificate regarding the stage of construction.
l. Builder’s Demand Notice.
m. N A Order.
n. U L C Order.
o. 7 x 12 extract / Index II Copy / property Register card extract.
p. Photographs showing the stages of construction.
1.15.1: In the case of flats under construction, apart from the documents mentioned above,
the following documents should also be obtained as a part of documentation.
a. Tripartite Agreement between the Borrower, Builder and Bank as furnished in appendix
34.
b. Where the flats are constructed on a plot of land, which is not owned by the Builder, a
true copy of the Power of Attorney executed by the land owner in favour of the builder
PM
that the builder is having specific authority to mortgage the flats.
c. Lien notice should also be sent to the builder intimating the lien of the Bank.
1.15.2: In case the plot is allotted by the Government / Housing Board and similar
3
autonomous bodies
:5
Allotment letter, Payment Receipt, Registered Lessee / Sale Deed, NOC to mortgage
are to be obtained. (All originals).
04
1.15.3: In the case of allotment of a plot by the Society, the following documents should
be obtained.
3
Deed of conveyance of land (original).

02
If the conveyance Deed is not returned by the office of the Sub-Registrar- certified true
copy of the Deed of Conveyance (certified by Registrar).
/2
Original Receipt issued by Registrar.

Letter of authority acknowledged by the Sub-Registrar to collect the conveyance deed.
0
NOC from the Society.

Extract of the Resolution.
/1
Bye laws of the Society.

26
Payment receipts (original).

Share Certificate (original).
Title Certificate.
8
Building completion and occupation certificate (in the case of ready built flat).
Photocopy of the N.A Order.
77
Approved Plan
7x12 Extract copy / Index II copy / Property Register card extract
99
Building Commencement Certificate.

1.15.4: The Bank should obtain tripartite agreement (Registered) with the builder, bank and
borrower, stating that if booking is cancelled, the money will be refunded to the bank
only. A letter is to be sent to builder stating that the loan is availed by the borrower
from the bank and no cancellation to be entertained.
1.15.5: NOC from builder’s financing bank to be obtained.
1.15.6 Verification of approved plan and construction and demarcation as per the approved
plan to be ensured, particularly in respect of flats.
1.15.7 Finance only houses / flats built by builders of repute. Due diligence of builders is
Page 65 of 212
Conducted and a negative list is prepared so as to aid sanctioning staff that credit facilities
are not extended to the ventures floated by builders with doubtful credentials. Lists of reputed
Advocates at all major centres are maintained for soliciting advice.
1.15.8 Particular care is to be observed in case of groups of borrowers approaching for loans.
1.16 IN CASE OF MORTGAGE OF LEASE HOLD PROPERTY:
Branches / offices shall consider mortgage of leasehold property for sanction of housing loan
under the subject scheme subject to compliance of following terms and conditions:
1.16.1 Lease hold right with a minimum unexpired period of not less than 90 years to be
accepted for sanction of Housing loan.
If unexpired lease period is less than 90 years and the left over lease period is beyond the
repayment period stipulated, RAH Head/RO HEAD CAC up to their delegated powers and
Sanctioning Authorities above them are empowered to permit sanction of Housing Loans on
lease hold properties where the lessor is Government/Local bodies.
In cases where original unexpired lease period is less than the Housing Loan repayment
PM
period:
a. Circle Head CAC is authorized to sanction Housing Loans on lease hold properties upto
their delegated powers provided following conditions are met with:
b. Unexpired period of lease is 2 years & above and the Lessor is Govt. Authority.
3
c. NOC is obtained from Lessor for putting through mortgage in Bank’s favour.
:5
d. Lease is automatically renewable and there is proper mechanism in force for renewal of
lease on its expiry. This can be ensured by obtaining an affidavit/undertaking letter from
04
the party ensuring that the party will renew the lease on the expiry of original lease term.
e. Branches /RAHs will also diarize the due dates of such leases and will follow up for their
renewals on due date.
3
In other cases, CGM/GM – HO - CAC is authority to permit.

02
1.16.2 The lessee should have unfettered right in the property leased to him /her, including
/2
right to mortgage the lease hold interest.

1.16.3 Area should be specifically mentioned with demarcation if any.
0
/1
1.16.3.1 Lease hold right together with the right to construct shall be represented by duly
registered document capable of creating mortgage. Such right should be clear and marketable
26
and free from encumbrances. The lease hold right in respect of land and the right in respect
of the proposed construction should be mortgaged to the Bank.
1.16.3.2 Lessee shall have the right to grant sub-lease or enter into agreement of leave and
8
license or sell or mortgage or charge the leased property.

77
1.16.3.3 The lessor shall agree to handover necessary documents of title and other material
document relating to the property, to the lessee in order to ensure lessee’s right under this
99
lease agreement are duly safeguarded.

1.16.3.4 The lessee shall be entitled for option of renewal of the lease.
1.16.3.5 The lease agreement shall be scrutinized by the panel advocate to find out whether
any encumbrance is subsisting and the advocate’s report shall mention that the property can
be taken as security for the loan to be granted by the Bank.
1.16.3.6 In case of such proposals branches / offices may refer to R&L Section of the Circle
Office for getting the lease deed drafted.
1.16.3.7 Circle heads can waive submission of any of the documents not affecting the title of
the borrower to the property and Bank’s right to enforce the security in consultation with R
& L Section.
Page 66 of 212
However, in such cases, necessary safeguards to ensure the prompt repayment of the loan
should be ensured - by stipulating suitable co-obligation / guarantee of the salaried persons
and their mandate to recover the instalment from their salary is to be lodged with the
employer.
1.17 PROCEDURE TO BE FOLLOWED WHILE DISBURSING THE LOAN FOR PURCHASE OF READY
BUILT HOUSE/FLAT:
1.17.1 The Housing loan for purchase of ready built house / flats shall be considered as
“Secured limits” for the purpose of delegation of powers, even though title is not transferred
at the time of disbursement. However, the branches shall follow the following procedure at
the time of disbursement of the loans as mortgage is to be created before disbursement of
the loan.
1.17.2 The proceeds of the loan shall be directly remitted / paid to the vendor at the time of
registration in the presence of the Sub-Registrar/Registering authority.
1.17.3 Acknowledgement from the Registering Authority for having received the document /
sale deed for registration should be obtained. This should be kept with other loan documents
and should not be handed over to the borrower. A true copy of the sale deed should be
obtained from the Registering Authority duly certified by him.
PM
1.17.4 Receipt from the vendor for having received the consideration / sale proceeds in full,
shall be kept along with the loan papers.
1.17.5 An authorization letter from the purchaser (borrower), authorizing the Bank to receive
the original registered documents from the Registering Authority (R&L Section of Circle Office
3
may suitably draft this based on APPENDIX 35 and 36) wherever required borrower’s signature
:5
on the reverse of the acknowledgement issued by the Registering Authority is to be obtained.
1.17.6 Presently powers have been delegated to the branches to approve the LSR. Therefore,
04
LSR is to be approved by the branches as per guidelines. Mortgage (EMT) shall be created by
taking the certified true copy of the original sale deed (Which is tendered for registration
with the Sub- Registrar) together with lodgement of all other original documents as per
3
approved LSR, other collateral and link documents as mentioned above. Even though EMT is
02
completed based on certified true copy of the original sale deed and receipts issued by
Registering Authority, the branches should follow up and obtain the original sale deed from
the Registering Authority. This should be predominantly recorded in the loan master.
/2
1.17.7 It is absolutely essential for the branches to ensure that the original documents
0
registered shall be lodged at the branch concerned. For this purpose, branches should pursue
the matter with the borrower / Registering Authority to ensure receipt of original registered
/1
sale deed within a period of 3 months. If the original sale deed is not received within the
specified period, the same should be reported to the reviewing authority in the relevant
26
advances review returns.
1.18 TIMELINE FOR COMPLETION OF EMT FOR HOUSE/FLATS: PLEASE REFER OUR HO CIR
8
844/2020 and 119/2022:

77
Existing Guidelines - Flats under construction:

Maximum Repayment Holiday of 36 months can be permitted in respect of flats under
99
construction where tripartite agreement has been executed for completion of flats. EMT can
be put through only after execution of sale deed. In such cases the next higher authority up
to GM-HO-CAC can permit extension of the time period of six months from date of Sale deed
for putting through the EMT.
After completion of permitted extension of time period for creation of EMT (including 6
months’ time extended by GM-HO-CAC), penalty at 2% p.a. on the sanctioned amount till
completion of EMT shall be levied.
1.18.1 For delay in construction of projects:
Wherever EMT is not put through for delay in construction of project (as per the agreed time
line) and RERA has approved for extension of time line for completion of project. In such
Page 67 of 212
cases the extended time line can be accepted where EMI is paid regularly (after completion
of original repayment holiday) & TPA is executed:
 Time line for creation of EMT can be extended up to RERA extended period. No penal interest
is to be levied.
 Repayment holiday period will not be extended beyond the sanction norms.
1.18.2 In other cases viz.,
a. Wherever, borrower is not creating EMT, even lapse of 6 months from the date of execution
of Sale Deed.
b. EMI is paid regularly but Sale Deed is not executed even after getting physical possession,
occupancy certificate.
c. Stalled projects which are approved under RERA & Pre RERA regime projects
In the above cases, penalty at 2% p.a. on the sanctioned amount till completion of EMT shall be
levied.
1.19 In the case of pensioners, our lien should be noted with the Pension Paying Office
and pension is credited in the branch. Authorization to deduct instalments / interest
PM
should be obtained.
1.20 AOD:
3
1.20.1. Housing Loan Accounts to Individuals, which are totally regular in repayment, branches
need not obtain AODs, as long as they are regular.
:5
1.20.2. However, branches shall draw PRR.12 (Certificate regarding Expiry Date of Pronote /
04
AOD/AOS and correctness of loan papers) for all Housing loan accounts - Individuals, between
24 and 36 months from the date of the Agreement/last AOD, in terms of existing guidelines.
3
1.20.3. Branch-in-charge shall make a review of all such Housing Loan accounts and wherever the
accounts are totally regular, shall make a suitable remark.
02
In case there is a default even by a single instalment and the same is overdue, RAH/Branch
shall continue to obtain AOD as per our existing guidelines.
/2
1.20.4. Certificate is to be given by the Branch-in-charge in PRR 12, for having reviewed all
0
Housing loan accounts and ensure obtention of AODs wherever accounts are irregular.
/1
1.20.5. AOD should be obtained at periodical intervals in case of other borrowers as per our
26
existing guidelines.
1.20.6. The loans for purchase of ready built houses / flats shall be considered as “Secured” for
8
The purpose of delegation of power. Therefore, the branches /CO can consider the housing loan
77
proposals for purchase of ready built houses / flats within their normal delegated powers.
1.20.7. As far as possible the branch should stipulate guarantee of third party to suit the existing
99
documentation. Wherever co-obligation is stipulated, suitable covenants should be incorporated

in the loan documents in consultation with R & L Section of the Circle Office.
1.21. REPAYMENT HOLIDAY (HOUSING LOAN - ALL VARIANTS):

a) In the case of purchase of ready built house/flat: The repayment should commence
within TWO MONTHS from the date of first disbursement.
b) In case of purchase of Site & Construction of House thereof AND OR only construction of
House in the existing Site: The Repayment should commence within 2 months after
completion of House OR 24 months from the date of first disbursement whichever is
earlier.
Page 68 of 212
c) In case of purchase of flat under construction: The Repayment should start within 2
MONTHS of completion of construction OR 36 MONTHS from the date of first
disbursement, whichever is earlier.
If any genuine reason is there for delay in completion of construction:
a. In case of purchase of Site & Construction of House thereof AND OR only construction of
House in the existing Site: Circle Head CO CAC can extend additional repayment holiday
of 12 months (beyond permissible holiday period of 24 months).
b. In case of purchase of flat under construction: CGM/GM-HO-CAC can extend additional
repayment holiday of 12 months (beyond permissible holiday period of 36 months).
c. The moratorium period is included within the maximum repayment period.
d. In these cases, till the commencement of EMI, the pre-EMI interest may either be
recovered from the party as and when accrued or clubbed along with the principal for
determining the EMI. The sanction letter should clearly stipulate the same taking into
account the circumstances of the case and merits thereof.
e. In case of flats/houses under construction, Pre-EMI interest should be collected as and
PM
when due. Sanctioning Authority may permit capitalization of interest very selectively
and on merits.
1.22. REVIEW OF SANCTIONS:
3
:5
Refer HO Cir. IC/374/2023 dt.20.04.2023 Credit Review and Monitoring Policy for the 2023-
24, HO Cir.579/2022 dt.20.09.2022 - Waiver of online pre-disbursement review of other
04
Personal Loans up to Rs.5.00 lakh sanctioned at RAHs.
1.23 RELAXATIONS:
3
Minimum Service/Business/Higher Quantum of Loan:

02
a. Any salaried individual with 2 years aggregated regular and continuous service with a
minimum completed service of 6 months in the current organization/company.
/2
Further, Respective Sanctioning Authority can permit 6 months break in service subject to
0
the following:
/1
 Customer shall be employed in the Current (present) Company/ Organization for a

minimum period of 6 months.
26
 Minimum monthly Gross Salary in the present employment shall be Rs.1.25 lakh & Net
Salary ofRs.1.00 lac to be ensured.
 Minimum NTH of 30% or Rs.40000/- whichever is higher to be ensured.
8
77
b. The relaxation in aggregated, regular and continuous service up to one year, subject to
minimum completed service of 6 months in the current organization/company can be
permitted by the following delegated authorities:
99
1. Proposals below RO-Head-CAC: RO-Head-CAC.

2. Proposals under RO-Head-CAC and above Authorities: Respective Sanctioning Authority
c. Delegation of Powers in respect of High Risk (CRG-4) proposals:
Respective Sanctioning Authority can sanction subject to the following:
a. The credit score of CIC/s of applicant/s should be 600 and above.
b. Gross income(cash accruals)/Monthly salary of the applicant/s should be minimum of
Rs.12.00 lakh p.a. or Rs.1.00 lakh per month respectively.
In other than above case, RO-Head-CAC and above authorities are delegated to sanction,
subject to ensuring suitable risk mitigants are in place.
Page 69 of 212
d. Any individual engaged in business & self-employed persons like, doctors, chartered
accountants, architects and others. Such applicants should have been in the business
for a minimum period of 3 years. Details of business/ profession should be indicated in
the application.
e. Restriction of minimum Business may be waived selectively by the following

authorities:
RAH Head/ RO HEAD-CAC/ AGM-CO-CAC up to their delegated powers and above
sanctioning authorities up to their delegated powers can reduce Minimum years of Business
with a cap of minimum ONE year.
1.24: INTRODUCTION OF TIE-UP ARRANGEMENTS WITH REPUTED BUILDERS IN LISTED

METROPOLITAN CENTERS/CITIES & LISTED CORPORATE DIRECT SELLING AGENTS TO
ROUTE HOUSING LOAN LEADS/PROPOSALS TO OUR BANK
(a) Tie-up arrangements with reputed Builders in listed Metropolitan Centers/Cities to
route housing loan leads/business to our Bank:
PM
1. Eligibility:
 Sole Proprietorship/Partnership Firms/LLPs/Companies having experience in the line
3
of business are eligible for Tie-up arrangements.
 Bank has to approve the Project / Project Approval as per extant guidelines before
:5
entering tie-up arrangement with the builder. For all the future projects (after entering
04
tie-up arrangement) also project approval shall be done by the respective circles.
 Tie-up arrangements shall be made with the Reputed Builders whose projects are in
the listed Metropolitan Centers / Cities as under:-
3
Sl.No. List of Metropolitan Centres/ Cities

02
1. Ahmedabad
2. Bengaluru
/2
3. Chandigarh
4. Chennai
0
5. Delhi (NCR)
/1
6. Hyderabad (HMDA)
7. Kolkata
26
8. Mumbai (Brihan)
9. Pune
10. Trivandrum
8
77
2. Execution of tie-up arrangement:
(a) Builders with *Pan India Presence:

99
Wing Head at Retail Assets Wing, HO is authorized to execute the *tie-up agreement on behalf of
the bank with the respective authorized representative of the builder as per the model format.
* Builders with Pan India presence shall be inferred as Builders/s having presence/projects operations in
more than one State/Circle
(b) Builders with Specific Area/Region Presence:
Respective Circle Head is authorized to execute the *tie-up agreement on behalf of the bank with
the respective authorized representative of the builder as per the model format.
Page 70 of 212
Note:
* Any changes/modification to the above model agreement shall be vetted as under:

Tie-Up Agreement executed at Retail Assets Wing, HO shall be vetted by concerned CO
Legal section duly forwarded by Circle Head with recommendation in conformance with
local/state laws, as applicable.
Tie-Up Agreement executed at Circle shall be vetted by concerned CO Legal section in
conformance with local/state laws, as applicable.
3.Roles & Responsibilities:
(i) Roles & Responsibilities of Builders:
 As per the mutually accepted terms & conditions in the tie-up agreement Builder has
to provide leads to the nearby RAHs/Branches alongwith required documents.
 Such proposals shall be within the operational area of the RAH/Branch office.
 The fees/commission shall be paid to the Builder for both new and existing customers
PM
of our bank.
 Monthly, Builder has to share the leads generated data to respective Circles and Circle
has to cross check the data submitted by the Builder with the leads punched in
LAPS/respective reports.
3
 Agreement shall be valid for a period of three years or till the inventory is exhausted
:5
whichever is earlier. However, on case to case basis on the request of the Builder
Circle Head may permit further extension of 1 year till the inventory is exhausted. In
04
case of Pan India Builders, as the new projects will be launching, fresh agreement
with latest projects details shall be entered for three years.
 In respect of tie-up arrangement with Bank, veracity of authorized representative of
the builder executing the agreement shall be supported by way of board resolution of
3
the Builder/s company.

02
 Builder/s will be held responsible for and shall indemnify the Bank for any loss caused
due to:
/2
 Mis-representation of facts in respect of loan product, proposals and any other thing
which is connected to or incidental to the loan proposal.
0
 Builder/s will indemnify the bank for any loss caused to the Bank directly or
/1
indirectly due to violation of any of the terms and conditions entered as per tie-up
agreement as well as guidelines of the Bank.
26
 The builder / developer / company would indicate in their pamphlets /brochures

having tie-up arrangement with our Bank for Housing Loans & wide
promotion/publicity to be ensured accordingly.
8
77
(ii) Roles & Responsibilities of Head Office:
 Retail Assets Wing, HO shall enter into tie-up arrangement with the Builders for
99
sourcing the housing loan proposals wherever reputed builders are having Pan India
presence. The necessary arrangements to complete Project Approval as per policy
guidelines shall be done by the respective Circle and submit a copy of the approval
to HO.
 Retail Assets Wing, HO to review the leads generated through builders and commission
paid from respective Circle Offices on monthly basis.
 Wherever, tie-up agreement is entered at Retail Assets Wing, HO, the
commission/service charges payable to the Builder shall be consolidated at HO and
the respective Circle shall be informed for the payment of Commission at their end.
 Respective Section at Wing has to place a note before Wing Head with regard to the
leads generated and Commission/Service charges paid to Builders on quarterly basis.
Page 71 of 212
 Retail Assets Wing, HO to review the details of Commission/Service Charges paid to
the Builders & any discrepancies/adversities observed shall be taken up with
respective Circles for rectification.
 The list of all builders with whom tie-up arrangements have been made by the Bank,
shall be published/updated in Corporate Website/CANNET/SAS package at regular
intervals for information.
(iii) Roles & Responsibilities of Circle Offices:
 As a first step Circle Offices has to identify the reputed builders in their purview and
make necessary arrangements to complete Project Approval as per our policy
guidelines at the earliest and enter into tie-up arrangement with the Builders for
sourcing the housing loan proposals.
 Ensure that the Builder is not in RBI/ RERA/ CREDAI/ State Development or Town
Planning Authority defaulters list and is having satisfactory Credit information.
 Master LSR to be obtained and the same to be approved by R&L section, Circle office
before approval of the Projects after ensuring obtention of statutory
approvals/permissions as per local guidelines and clear marketable title.
PM
 Wherever, reputed builders are having Pan India presence, Circle to make necessary
arrangements to complete Project Approval as per policy guidelines at the earliest &
same shall be forwarded with Circle Head recommendation to Retail Assets Wing, HO
for entering into tie-up arrangement with Builders for sourcing housing loan proposals.
3
 Circle shall identify the RAHs/Branches through which the proposal shall be routed on
:5
mutual understanding between Builder and Circle as entered in the agreement.
 Circles to review the leads generated through builders and commission shall be paid
04
to the Builders at circle Office after consolidating the total business sourced for the
quarter and as per eligibility criteria.
 Circles have to submit the details of Commission/Service Charges paid to Builder on
3
monthly basis before 15th of next month to Retail Assets Wing, HO.
02
 Any discrepancies/adversities observed by Retail Assets Wing, HO related to payment

of Commission/Service Charges to be rectified & confirmed immediately.
 To submit the particulars of Builders and their approved project to Retail Asset Wing,
/2
HO for publishing in our web site. To submit the updated data at frequent intervals
0
for additions and deletions of the Builders on an ongoing basis.

 Safe keep and maintain the documents obtained / agreements executed between
/1
builder and bank.

26
(iv) Roles & Responsibilities of Regional Offices:
 ROs has to maintain good liasoning with the Builders and ensure that the proposals
8
are sanctioned/disposed in a timely manner.

77
 Have a regular contact with local CREDAI/Builders’ associations to know the latest
information about new projects/Builders etc.
99
 Any adverse features reported by RAHs/Branches related to new projects/Builders in

their area to be reported to Circle Office immediately.
 It should be ensured that the builders also give wide publicity regarding our Approval
in their Brouchers/Hoardings/Website etc.
(v) Roles & Responsibilities of RAHs/Branches:
 Selected RAHs/Branches has to maintain good liasoning with the Builders and ensure
that the proposals are sanctioned/disposed in a timely manner.
 Ensure by discreet enquiries that the Builders are reputed in the area, have kept their
earlier commitments and are Credit worthy. Any adverse features noticed, to be
reported to Regional Office immediately.
Page 72 of 212
 To ensure that maximum no. of proposals are assured by the Builder after approval
and commitments are obtained to that effect at the time of obtaining/preparing the
proposal.
 While punching the data in the LAPS package, Branches/Offices has to necessarily
pick the respective Builder code so that, the data shall be automatically flows to the
Circle for payment of the commission.
4. Commission payable to Builders basing on the minimum quantum of housing loan

business (Sanctions) routed to our bank:
Sl Region Metropolitan *Commission/ Aggregate Quantum /

No. Category Centres/Cities Service Business booked
Charges (Sanctions)
1. A Bengaluru, 0.60% Minimum Quarterly
Chennai, Delhi Business of Rs 150 Crores.
(NCR), 0.65% Above Rs 150 Crores &
Hyderabad upto 200 Crores Business
(HMDA) & in a Quarter.
PM
Mumbai (Brihan) 0.70% Above Rs 200 Crores &
upto 250 Crores Business
in a Quarter
#
3
0.75% Above 250 Crores Business
in a Quarter
2. B Ahmedabad,
Kolkata,
0.50%
:5 Minimum Quarterly
Business of Rs 100 Crores.
04
Chandigarh, 0.55% Above Rs 100 Crores &
Pune, & upto Rs 135 Crores
Trivandrum Business in a Quarter.
3
0.60% Above Rs 135 Crores &

02
upto Rs 170 Crores

Business in a Quarter
/2
#
0.65% Above Rs 170 Crores
Business in a Quarter
0
/1
*The payment of Service Charges/Commission shall be made to Builder or SPV

formed/engaged exclusively for the said purpose only. However, the above mentioned
26
rates marked under respective Aggregate Quantum/Business booked are the maximum
rates, Circles has to negotiate with the builders considering the quantum/volume of
business and other factors.
8
#
77
The Service Fee/Commission marked under respective Metropolitan Centres/Cities

Group relates to maximum commission amount payable to the listed Builders for
business sourced above referred slab.
99
5. Other Terms & Conditions:
i. Builder has to source the minimum aggregate loan quantum (sanctions) in a quarter as
mentioned above slabs to be eligible for Commission/Service charges. The Service
fee/Commission payment is subject to disbursement of minimum of 10% of the
sanctioned amount of housing loan.
ii. In case of Pan India Builders/Developers wherein the projects are situated in ‘A’ & ‘B’
category regions, to be eligible for Commission/Service charges the overall (including
both the regions) sanction shall be Rs.100 Crores or above. In such cases, the
commission payment shall be made as per the respective region.
Page 73 of 212
iii. In case, if any Builder surpasses the minimum aggregate quantum of the sanctions
within a Quarter then payment of commission shall be released immediately complying
the minimum disbursement of 10%.
iv. However, in case where minimum Aggregate business threshold fixed for listed Builders
as per proposed structure in Region category “A” (Rs 150 Crores) & “B” (Rs 100 Crores)
is not achieved, payment of Commission/Service Charges shall be done as per existing
rates enumerated in HO Cir 575/2015 dated 05.12.2015 i.e 0.25% of the Housing Loan
amount for referring Housing Loan proposals to our Bank subject to a Maximum amount
of Rs. 50000/- per loan sanctioned, provided minimum three Housing Loans or a
minimum amount of Rs.1.00 Crore is sanctioned and disbursed in the same project.
v. The fee/Commission includes all applicable taxes such as GST, Income tax, TDS and
others if any, as per local laws and the amount payable shall be net of the same.
(b) Tie-up arrangements with listed Corporate Direct Selling Agents to route housing loan
leads/business to our Bank:
1. Eligibility:
 Sole Proprietorship/ Partnership firms/ LLPs/Companies are eligible at present as per
PM
approved list mentioned in point no 7 below.
 The said firm/company shall be registered under RERA/WBHIRA/ Unregistered.
2. Process of Empanelment:
3
 The firm/company shall submit the application along with the list of documents as
:5
applicable to regular DSAs to the respective Circle Office.
 Circle has to conduct due diligence which involves compliance with KYC norms and
04
other aspects of the firm/company. Wherever, the applicant is already a DSA in any
other Bank/FI, the same is also to be verified independently.
 After completion of due diligence, an agreement shall be executed between Bank and
3
the Corporate DSA with pre-agreed terms and conditions.

02
 The agreement shall be valid for a period of two years. However, at the sole discretion
of the bank, the tenor may be extended further every two years based on the
performance of the Corporate DSAs.
/2
 Circle has to review the performance of the Corporate DSAs on monthly basis and submit
a report to RA Wing with all the business generated details. RA Wing shall place a
0
quarterly note to respective ED on the performance of the Corporate DSAs.

/1
 Wherever the existence of Corporate DSAs is in more than one city/area then the
agreement shall be executed at the place of Registered/ Corporate office of the
26
Corporate DSA.
3. Roles and Responsibilities of Corporate DSAs:
8
77
 The empaneled Corporate DSA has to execute stamped *agreement and any other
declarations/undertaking letters as per Bank’s format.
 The Corporate DSAs shall identify housing loan proposals and route to the
99
ROs/RAHs/Branches as per pre-agreed terms or within the operational area along with
required documents applicable for housing loans including KYC documents.
 Corporate DSAs should source proposals from New to Bank (NTB) customers only. They
can generate housing loan proposals from the projects approved by our bank or by other
public sector/private sector banks etc.,
 For every case referred by Corporate DSA, Commission/fee will be paid only to one
entity i.e., if a proposal is referred by a Corporate DSA where in the flat/property is
located in a residential project of a Builder who is also empaneled by our Bank for
payment of commission/fee. The commission/fee will be paid only to the Corporate
DSA as the case was referred by the Corporate DSA and not the builder.
 Corporate DSAs are not eligible for any other fees/incentive from the bank/customers.
Page 74 of 212
4. Minimum Business Level to be sourced by Corporate DSAs:
 Empanelled Corporate DSA need to source minimum Quarterly Business of Rs 50.00 Cr

(Tier-1 Cities) &Rs 25.00 Cr (Tier-2 Cities). Under performing corporate DSAs to be put
on notice with an advice to improve the performance and on a continuous non-
performance of DSAs for a period of 6 months, depanelment of such DSAs to be
initiated.
 Minimum Single proposal Loan Amount shall be Rs.50 Lakhs and above.
 Commission will be paid after minimum disbursement of 20% of sanctioned loan
amount.
 Takeover of Corporate DSA sourced Housing Loan to other banks will attract penalty as
below:
A) Takeover within one year-100% commission for that particular loan will be
recovered from Corporate DSA.
B) Takeover within 2 Years -50% commission for that particular loan will be
recovered from Corporate DSA.
PM
5. Fees/Commission Payable:
The Corporate DSAs shall be paid service fee/commission (Tier I& II Cities) as under:
3
Sl No. Business per Month (Sanctions) Corporate DSA Commission
1 Above Rs. 3.00 Cr to Rs. 5.00 Cr

:5 0.70%
04
2 Above Rs. 5.00 Cr to Rs. 7.5 Cr 0.80%
3 Above Rs. 7.5 Cr to Rs. 10.00 Crore 0.85%

3
4 Above Rs. 10 Crore 0.90%

02
5 Additional commission for Takeover loans 0.10%

/2
Additional commission for high value loan for

0.10%
0
6 individual proposals of Rs 1.00 Cr and above.

/1
Maximum commission per proposal Rs. 11 Lakh (Excluding GST)

7
26
Maximum commission will be 1% (including all

1%
8 additional commission)
8
77
Note: Corporate DSAs are eligible for additional fixed commission of Rs. 5000/- in case of
proposal for Ready Built House/Flat/Villa where single disbursement shall be done after
99
sanction.
 Fee/Commission payable shall be exclusive of GST payable as per IT rules in force.

 TDS on commission will be applicable as per Income Tax / Bank extant guidelines.
 The listed Corporate DSAs are eligible for commission/fee for routing the housing
loan proposals in Tier-I &II Cities as mentioned in point no 7 in this annexure.
 In case the total proposals/business routed by a Corporate DSA is less than Rs.3.00
Crores in a month, they are not eligible for payment of commission.
Page 75 of 212
6. Roles & Responsibilities of Circle Offices:
 Circle shall identify the RAHs/Branches through which the proposal shall be routed on
mutual understanding between Corporate DSA and Circle as entered in the
agreement.
 Respective Circle Head is authorized to execute the tie-up agreement on behalf of
the bank with the respective authorized representative of the Corporate DSA.
 Safe keep and maintain the documents obtained / agreements executed between
Corporate DSA and bank.
 Commission/Fee for the current month will be paid in the succeeding month subject
to complying all other conditions. Corporate DSA has to share the proposals generated
data to respective Circles and Circle has to cross check the data submitted by the
corporate DSA with the proposals punched in LAPS/respective reports. Bank will pay
commission within 5 days from the date of the submission of the invoice by Corporate
DSA to the respective circle.
 Circles to review the leads generated through builders and commission shall be paid
to the Corporate DSAs at circle Office after consolidating the total business sourced
for the month and as per eligibility criteria.
PM
 The Credit, Legal, Technical appraisal, conduct of due diligence including KYC
verification of the borrower/s shall be done by the Bank and sanction/rejection of the
proposal will be at the discretion of the Bank.
 Corporate DSAs details to be punched in the SAS package as per existing guidelines.
3
 In case of taken over of accounts within the stipulated period as mentioned in the
:5
note, Circle has to collect the penalty from the Corporate DSA Commission and
maintain the proper records.
04
 Circles has to submit the quarterly performance of the Corporate DSAs before 7th of
the succeeding month of the quarter to RA Wing.
3
7. List of Corporate DSAs:

02
Sl No Name of the RERA registered DSAs Areas Covered

/2
1 Investors Clinic (UPRERAAGT10052) NCR and Pan India

2 Anarock Property Consultants Pvt Ltd Mumbai and Pan India
0
/1
3 Urban Money Pvt Ltd Mumbai and Pan India

4 360 Realtors (A51900000246) Mumbai & Pune
26
5 Guardian Financial Advisory Mumbai & Pune

6 Somani Realtors (HIRA/A/KOL/2018/000026) Kolkata
8
7 N K Realtors (HIRA/A/NOR/2018/000001) Kolkata

77
8 Proptiger (UPRERAAPRJ4514) NCR and Pan India

9 Quickr Reality (UPRERAARJ2373) Pan India
99
10 Loanshop India NCR

11 Bullmen Business Center Pvt Ltd NCR
12 Vasavi Holistic Corporate Services LLP Hyderabad
Ceyone Home Real State LLC /Seyonii Marketing Tech
Pvt Ltd Bengaluru
13 (PRM/KA/RERA/1251/309/AG/180727/001045)
Prop Solutions4u
Bengaluru and Pan India
(PRM/KA/RERA/1251/310/AG/210225/002299)
14
Property Junction International
15 Bengaluru
(PRM/KA/RERA/1251/310/AG/200201/001787)
Page 76 of 212
Note:
 The tie-up agreement shall be entered with the above mentioned list of Corporate DSAs.
 TIER-I Cities: Bengaluru, Chennai, Delhi (NCR), Hyderabad(HMDA), Kolkata,
Mumbai(BRIHAN), Ahmedabad, Pune.
 TIER-II Cities: All State Capitals other than Tier-I Cities.
2.HOUSING LOAN TO EMPLOYEES OF CENTRAL / STATE GOVERNMENT/AUTONOMOUS BODIES

CREATED UNDER AN ACT AND PSUS AGAINST PARI PASSU/ II CHARGE:
2.1 INTRODUCTION:
2.1.1. The housing loans granted by the state / central govt., PSUs and autonomous bodies
created under the Acts to their employees are normally found to be quite low. Hence, such
employees are approaching banks for availing additional loans for the purpose of construction
/ completion / purchase of house / flat or for meeting expenses towards repairs / renovations,
etc. Since, the underlying property is already mortgaged to their employers (viz., state
/central govt. / PSUs / autonomous bodies created under an Act) for the existing housing loan,
PM
such employees are not in a position to offer exclusive mortgage over the property except to
provide pari-passu / II charge over such property.
2.1.2. Considering the above, housing loan to the employees of central / state govt. /PSUs /
3
autonomous bodies created under an Act for the purpose of construction / completion /
:5
purchase of house / flat or for meeting expenses towards repairs / renovations etc. against
pari-passu / II charge can be considered subject to strict adherence to the following guidelines.
04
2.2 ELIGIBILITY:
3
Employees of central / state govt. / PSUs / autonomous bodies created under an Act, who
are otherwise eligible for housing loan from our Bank under the housing finance scheme.
02
2.3 QUANTUM:
/2
In respect of loans for acquiring / purchasing / construction of house / flat or for undertaking
0
repair /renovation / providing amenities, etc. to the existing house, the loan quantum should
/1
be restricted to the least of the following:

26
2.3.1. The loan already availed from the employer and the proposed loan from us put together
shall be within the eligible loan quantum of the applicant as per our guidelines.
OR
8
2.3.2 The total project cost less the stipulated margin as also the loan availed from the
employers.
77
2.4 SANCTIONING AUTHROTIY:

99
Only Circle Heads-CAC (CGM/GM-CO-CAC / DGM-CO-CAC as the case may be) and above
authorities are vested with powers to grant such loans in respect of proposals falling up to
their powers.
2.5 DOCUMENTATION:
The set of documents to be obtained in respect of such loans is available with the Circle
Offices. Hence, while communicating the sanctions, the concerned Circle Office shall forward
the set of documents to be obtained by the branch.
Page 77 of 212
2.6 OTHER TERMS & CONDITIONS:
2.6.1 The applicant should address suitable letter to the first mortgagee requesting them to
give consent for creation of pari-passu / II charge as the case may be in favour of the Bank.
2.6.2 The first mortgagee will have to execute an undertaking / covenant for creating pari-
passu / II charge over the property in favour of the Bank. The first mortgagee will also clearly
undertake not to grant any additional / supplementary housing finance to the mortgagor
without the specific prior permission of the Bank.
2.6.3 The branch after obtaining the consent from the first mortgagee may call for copies of
the documents / title deeds / LSR which have been deposited with the later for preliminary
scrutiny at branch level. In case further scrutiny is required, the same may be got done by the
branch through the panel advocate. On the other hand, if the branch is convinced about the
clear title, further steps may be taken for creating pari-passu / II charge.
2.6.4 In case the first mortgage is a registered one and the first mortgagee is willing to part
with the original title deeds, EMT can be put through at the branch by following the usual laid
down procedures in this regard.
PM
2.6.5 In case what is stipulated under above is not possible, then, the branch may create pari-
passu or II charge whereby the first mortgagee will act as an agent of the II mortgagee to
secure the deposit of title deeds. Also, in such cases, an undertaking from the first mortgagee
should be obtained to the effect that after clearance of liability with them, the document
3
relating to the property will be directly handed over to the Bank. In such cases, the first
:5
mortgagee should also undertake to hold the original documents with them, which would be
sufficient to consider the proposal.
04
2.6.6 The undertaking obtained from the first mortgagee should also clearly list out the
specific documents held by them.
3
2.6.7 All other guidelines that are applicable for normal housing finance would equally be
02
applicable here also.

2.7 INSURANCE:
/2
2.7.1 The security charged to the bank should be insured against comprehensive risk with a
0
bank clause to the full value of the house. Cost of land may be excluded.
/1
2.7.2 In the case of construction of a house the Builders All Risk Insurance should be obtained
26
till the completion of the construction, followed by a comprehensive insurance after

completion of the building.
2.7.3 Companies in existing tie ups viz., 1. M/s Tata AIG, 2. M/s Bajaj Allianz Company,
8
3.M/s New India Assurance Co. Ltd

77
2.8 LIFE INSURANCE

99
Canara HSBC Life Insurance Co Ltd, Bajaj Allianz & LIC of India under tie up arrangement at
the option of the borrower are having product which covers Life of the borrower in case of
death or permanent disability of the client, the liability of the home is secured by the
insurance Company.
Bank has introduced CANARA HOME LOAN SECURE, which can be financed one time insurance
premium as personal loan repayable in maximum 15 years.
2.8.1. With a view to cover the Life Risk of the borrower so as to save the family from the
hardships of clearing the Housing Loan liability in the unfortunate event of the death of the
borrower, Bank has entered into a tie-up with Canara HSBC Oriental Bank of Commerce Life
Insurance Company Limited to offer a Life Insurance cover, to our Housing Loan borrowers.
Page 78 of 212
2.8.2. The scheme rules, premium calculator, terms and conditions, process note etc., Circular
issued from time to be referred.
2.8.3. Premium calculator should be downloaded from the Cannet.
2.8.4. Advantages to the borrower
a. Complete peace of mind since in the unfortunate event of death, family will not be
burdened to repay the loan.
b. Flexibility of funding insurance premium.
c. Tax benefits under 80 C and 10 (100 of the Income Tax Act 1961)
d. A voluntary plan that can be chosen.
e. In house availability of Insurance cover for life.
2.8.5 Branches/Offices shall note that obtention of the life insurance cover on the housing
loan borrowers is in addition to the General Insurance risk cover which is presently obtained
from general insurance companies for the properties taken as securities. The existing
guidelines regarding obtention of insurance cover for general risks shall continue and to be
strictly adhered to.
PM
2.9. MONITORING AND REPORTING:
2.9.1 Pre-sanction inspection should be conducted before processing the application. Before
disbursement of each instalment, the branch should inspect the construction / repair work in
3
progress.
:5
2.9.2 The property mortgaged to the bank should be inspected within one month from the
date of disbursement in the case of purchase of a ready built house/flat.
04
2.9.3 In the case of loan for the purchase of a site and construction of a house, mortgage
should be completed before disbursement of the loan for the construction purposes.
3
2.9.4 In the case of construction of a house, disbursement shall be made after ensuring the
02
end use of earlier disbursements by inspection of the work.

2.9.5. House property should be inspected once in a year. But this may be waived where the
/2
repayment is regular as per sanction terms.

2.9.6 Where the instalments are irregular or are not paid and loan is overdue, immediate steps
0
should be initiated to recover the dues including disposal of the property.

/1
2.9.7 Wherever EMT is stipulated, the EMT has to be completed within the stipulated period
26
in the sanction. Wherever EMT is not put through within the stipulated period, the same should
be treated as an irregularity and to be reported in related review return. All the irregular
accounts shall be reported in SWL to the respective reviewing authorities.
8
2.9.8 Tax paid receipt should be verified once in a year.

77
2.9.9 The documents pertaining to the property to be mortgaged should contain

comprehensive and authentic details of boundaries, survey number, etc. for easy identification
99
thereof.
2.9.10 The panel valuer has to necessarily visit the site and personally verify the location with
reference to the details specified in the documents produced by the borrower and confirm the
date of verification of the property concerned in his certificate.
2.9.11 The valuer should also indicate any encroachment or tenancy and/or any other negative
aspects like the property offered being bounded by slum area, burial ground, lake etc., to
enable the bank to take suitable view/ decision on acceptance of the property as security or
otherwise.
2.9.12 Branches / offices should not totally depend on the valuation report submitted by panel
valuers. Independent market enquiries should be made to verify the veracity of such reports.
Page 79 of 212
Genuineness of documents should also be verified by taking up the matter with government
offices such as registrar’s office etc. Latest tax paid receipts are to be verified.
2.9.13 The proposed borrower should not be encouraged to deal directly with the panel
advocate for obtaining LSR. Obtention of LSR should be handled directly by the branch.
Advocate has to invariably verify the original documents. Photocopies if any, to be certified
by the advocate after duly verifying with the originals.
2.9.14 At any point of time, no middleman / agents should be entertained / encouraged.
2.9.15 Branch official shall necessarily visit the site / place where the immovable property
proposed to be mortgaged is situated and submit an inspection report duly recording all the
particulars as advised in APPENDIX-39 and preserve the same along with the relevant loan
papers. It is desirable to have a sketch map of the property with landmark etc.
2.9.16 In the event of any discrepancy or suspicion of collusion of the borrower with legal
advisors / panel valuers, such cases are to be taken seriously and taken up immediately with
concerned circle office for review of their continuance in the Bank’s panel.
2.9.17 Physical verification of the property by the branch officials to ascertain its existence
PM
must be carried out before putting through EMT. A suitable record in this regard containing
the name of the official/s who have conducted such verification and the date of physical
verification should be maintained. It is desirable to have a sketch map of the property with
landmarks etc.
3
2.9.18 Branches should send a letter to the guarantor / mortgagor, by way of registered post
:5
with acknowledgement due to confirm his/ her proof of residence.
2.9.19 Branches / offices should make independent market enquiries to verify the veracity of
04
valuation and not depend totally on valuation report submitted by panel valuers. At any point
of time, no middlemen/agents should be entertained /encouraged.
3
2.9.20 Borrowers should not be allowed to approach legal advisors or panel valuers directly for
02
obtaining LSR / valuation certificate. All documents should be directly handed over to the
legal advisor / panel valuer by the branches/ offices. Latest tax paid receipts is to be verified.
/2
2.9.21 Discreet enquiries are to be made to verify genuineness of documents viz., salary
certificate, Form-16, Income Tax Assessment Order etc.,
0
/1
3. HOUSING FINANCE TO STAFF MEMBERS OF OUR BANK:

26
Housing Finance under the subject scheme may be extended to our employees to construct
/acquire a second dwelling unit in the same place where he / she is already owning a house /
flat or any other place on the same terms and conditions as applicable to customers even in
8
cases where the Housing Loan liability under EHL scheme is subsisting. The loan may also be
considered for extension, expansion, upgradation, creation of amenities.
77
a. If the spouse of our employee has availed Housing Loan under the Housing Loan Scheme
either from his / her employer or from other sources and the liability is continuing, our
99
employee may also be permitted to avail Housing Loan under the Housing Finance Scheme for
the purpose of acquiring / construction of a second house in the same place on the terms and
conditions as applicable to customers.
b. In case an employee whose remaining service is less than 30 years, and he/she opts for 30
years repayment, in such cases, ostensible liability remaining at the time of retirement is to
be recovered out of his/her terminal benefits/ own sources. It is to be ensured that the
terminal benefits will be sufficient to cover the ostensible liability of this housing loan along
with that of other loans. However, continuation of Housing Loan liability on retirement,
Voluntary Retirement, resignation can be permitted at the specific request of the
employee concerned based on merits of individual cases by the Circle DGM.`
Page 80 of 212
No relaxation in any of the terms and conditions of the housing finance scheme shall be
extended to our employees except relaxation permitted as per Para b. Mandate should be
obtained and lodged with the Salary Disbursing Authority.
Loans granted under the scheme to our employees should also be reported in the half yearly
statement under direct finance.
Powers to sanction loans under the scheme to staff member’s vests only with Divisional
Manager (CO) and above authorities at CO/HO as per the delegated powers of the respective
authorities.
With a view to assist our employees to meet differential project cost in acquiring a house, our
employees are eligible to avail loan under Housing Finance Scheme of the Bank on the same
terms and conditions as applicable to customers like eligibility, loan quantum stipulation, rate
of interest, margin, repayment etc.
However, while handling such proposals seeking loan to meet differential project cost,
branches / offices shall ensure adherence to the following also:
Net Take Home – As per the existing guidelines under Employees Housing Loan (EHL), the total
recoveries, including the recovery for proposed EHL/AHL, other loans / advances, Provident
PM
Fund, Income Tax and other deductions of statutory nature shall not exceed 75% of the gross
salary of the employee. In other words, the net take home pay of the employee under no
circumstances is less than 25% of his / her gross salary.
3
As such, the NTH as applicable to Housing Loan to General Customers under RBI Housing Loan
:5
Scheme as under:
 Minimum NTH up to 25% (after meeting the instalment for the existing & proposed Loan)
04
with a minimum cap of Rs.10000/- at the time of availing the loan.
 If the repayment period goes beyond 70 years, minimum NTH shall be retained at 40% with
a minimum of Rs.10000/- p.m. In such cases relaxation of NTH upto 25% with a minimum of
3
Rs.10000/- (after meeting instalment for the proposed HL) and the same shall be permitted
02
by Circle Head-CO-CAC and above authorities up to their delegation of powers.

Security – Continuing security of land and building mortgaged to the Bank under Employees’
/2
Housing Loan Scheme. For this purpose, branches shall adhere to the documentation as laid
down in BPC-Manual of Instructions on Documentation and other communications issued in this
0
regard.
/1
Relaxation to Staff under RBI Housing Loan Scheme - Following relaxations may be permitted
26
by Circle Head-CAC and above authorities up to their Delegated powers.

i) Higher Loan quantum up to 5 years’ salary.
8
ii) Relaxation in requirement of minimum three years of service provided the employee is
77
confirmed in the service.

iii) The NTH as applicable to Housing Loan to General Customers under RBI Housing Loan
99
Scheme as under:
Minimum NTH up to 25% (after meeting the instalment for the existing & proposed Loan)
with a minimum cap of Rs.10000/- at the time of availing the loan
If the repayment period goes beyond 70 years, minimum NTH shall be retained at 40% with a
minimum of Rs. 10000/- p.m. In such cases relaxation of NTH up-to 25% with a minimum of
Rs.10000/- (after meeting instalment for the proposed HL) and the same shall be permitted
by Circle Head-CO-CAC and above authorities up to their delegation of powers.
4. GENERAL PRECAUTIONS TO BE TAKEN TO ENSURE SAFETY AND SECURITY OF HOUSING

LOANS:
1. Title Deeds to be handed over to the advocate by Bank only and all his queries should be
routed through bank only. The fee will also to be paid through bank.
Page 81 of 212
2. Branches should verify genuineness of the documents independently through their own
Advocates /solicitors.
3. Sub-Registrar’s Office may be approached, through the advocates, to verify the genuineness
of stamp paper/documents/registration receipt etc., in case of any doubt.
4. The title deeds may be exposed to ultraviolet rays to differentiate between original and
fake title deeds/agreements for sale. While genuine stamp paper will glow in presence of ultra
violet rays, fake one will not glow.
5. Valuation reports may be closely scrutinized in case of doubt by making discrete enquiries
about various costs indicated in the valuation report. Visit the site and enquire the fair value.
6. In case of purchase of property from Govt. agency / other agency on their behalf or co-
operative society etc., allotment letter of such agency issued in favour of buyer should be
obtained.
7. Visit the society / agency for verification of records and lien noting in society records.
Obtention of original certificate is a must.
8. Relevant testimonials like bye laws, Registration certificate and colonizer license of builders
should be verified with appropriate issuing authority.
9. Bank should insist on original title deeds of the landed property on which structure is built
for verification.
PM
10. Ensure that all original papers are obtained. Any document with which sale can be made
shall not be parted with the borrower.
11. Further, regular inspection to be conducted and tax paid receipts to be verified yearly.
12. In case of GPAs branches to verify genuineness and current validity of the GPA with
3
reference to records available with Sub-Registrar’s office apart from obtaining confirmation
from the executants of GPA.
:5
13. Data from CIR may be utilized for verifying the antecedents of the borrower.
04
14. Analysis of rejected applications to be carried out and common deficiencies observed in
such applications to be noted.
3
5. FREE CREDIT CARD FACILITY TO OUR HOUSING LOAN BORROWERS:

02
Please refer HO Cir:359/2015 dt.17.07.2015 & HO Cir.IC/419/2022 dt.18.07.2022 Credit Card

/2
Policy 2022-23.
0
*****
/1
26
8
77
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Page 82 of 212
1.a.HOUSING - CUM - SOLAR LOAN (PRODUCT CODE 619)
The overall project under this scheme will consist of Two Loan components:
a. Housing Loan component: Include project cost of House.
b. Solar Loan Component: Include cost and installation of Grid Interactive Rooftop Solar
Photovoltaic (PV) Equipment.
The maximum Benchmark cost of installation of Solar Component shall be Rs.1.20 lakh Per ONE
KW and maximum capacity shall be 10 KW with total project cost of Rs.12 Lakh with storage
battery and Rs.10.00 Lakh without storage battery.
i) Loans can be sanctioned along with fresh Housing Loan.

ii) Loans can also be sanctioned independently with subsisting Housing Loan if the track
record of the existing Housing Loan is good.
1.1a.PURPOSE:
Loan to individuals for installation of Roof Top Solar Photovoltaic (PV) System along with our
PM
Housing Loan.
Housing Loan:
As applicable to our Housing Finance Scheme. However, loans for purchase/construction of
3
flats shall not be permitted under this scheme.
:5
Solar Loan: For the purchase and installation of Roof Top Solar Photovoltaic (PV) System on
the roof top of house as a part of Home Loan OR without Housing Loan.
04
The Solar Loans:
 Can be sanctioned along with fresh Housing Loan on the same eligibility conditions.
3
 Can be sanctioned to applicants who are having subsisting Housing Loans.

02
 Can be granted independently against the mortgage of residential/ house property which is
having free rooftop to install the Solar Equipment EVEN WITHOUT Housing loan.
/2
In all the above case Mortgage of House property is mandatory.

0
1.2a ELIGIBILITY:
/1
Individual Housing Loan borrowers as per Housing Finance Scheme who are having free rooftop
26
to install the Solar Equipments.
1.3a QUANTUM :
8
The maximum Housing loan quantum that may be considered under this scheme is within the
77
quantum norms stipulated under each Housing Loan variants i.e. presently as under:
99
1. General Housing Loan: 6 times of Gross Annual Income.

2. HL to NRIs: 4 times of Gross Annual Income.
3. HL to Agriculturists: 6 times of Gross Annual Income.
5. Canara Home Loan Super Gain: Minimum of Rs 20 Lakh. Maximum- No upper limit.
(Higher amount of Housing Loan can be permitted as per existing delegation of powers as
applicable to Housing Loans).
However Loans for Solar Component shall be Rs.10.00 lakh OR 20% of total Housing Loan
eligible quantum OR 80% of the system cost as per proforma invoice/quotation (rate including
the cost of accessories) whichever is lower.
Page 83 of 212
The project cost of a grid connected Rooftop PV system will include the hardware i.e., PV
modules, inverters, meters, support structures, charge controllers, cables and minimum
battery required to ensure smooth operation.
 For the purpose of their component of the programmer, Residential RTS plant would be the
solar power system installed mainly on the roof of a residential building having an active
residential power connection from the local DISCOM, and would also include installations
on open contiguous land within the premises of the Residential building. The CFA patter
for the residential sector will be as follows:
Type of residential sector CFA (as % of benchmark cost or cost discovered
through competitive process whichever is lower)
Residential sector (maximum up to 3 kW 40% of benchmark cost**
capacity
Residential sector (above 3 kW capacity 40% UP TO 3 KW+ 20% for RTS system above 3 kW and
and up to 10 kW capacity)* up to 10 kW.
*The residential sector uses may install RTS plant of even higher capacity as provisioned by respective State electricity regulations;
however, the CFA will be limited up to 10 kWp capacity of RTS.
PM
**Benchmark cost may be different in General Category States / UTs and Special Category States / UTs i.e., North Eastern States
including Sikkim, Uttarakhand. Himachal Pradesh, Jammu & Kashmir, Lakshadweep & Andaman & Nicobar Islands. CFA shall be
on benchmark cost of MNRE for the sate / UT or lowest of the costs discovered in the tenders for that state / UT, whichever is
lower
1.4a NET TAKE HOME:
3
:5
amount of Net Income/NTH quantum shall be stipulated at Rs.10,000/- (after meeting
04
instalment for the proposed HL) in all cases.
If the repayment period goes beyond 70 years, minimum NTH shall be retained at 40% with a
3
minimum of Rs. 10000/- p.m. In such cases, relaxation of NTH upto 25% with a minimum of Rs.
02
10000/- (after meeting instalment for the proposed HL) and the same shall be permitted by
Circle Head-CO-CAC and above authorities upto their delegated powers.
/2
1.5a MARGIN
0
Housing Loan: Margin on Housing Loan component will be as applicable to our Housing Finance
/1
Scheme (all variants).

26
Solar Loan: 20%of the Project Cost of Solar Loan component including accessories as per
Proforma Invoice.
8
1.6a REPAYMENT
77
The loan under this Solar Loan scheme should be repaid within a maximum period of 20 years
99
OR the repayment period stipulated under Housing Loan, whichever is earlier.
1.7a RATE OF INTEREST
As communicated by HO from time to time (As per General Housing Loan Scheme
guidelines).
1.8a SECURITY:
Housing Loan: As applicable to Housing Finance i.e EMT of House property and other extant
guidelines.
Solar Loan: Continued EMT of the House property to be obtained if subsequently sanctioned
for existing Housing Loan.
Page 84 of 212
The asset created out of this loan is taken as security by way of hypothecation by obtaining
the Agreement cum deed of hypothecation as per Annexure-92.
1.9a SANCTIONING AUTHORITY:
As applicable to Housing Loan.
The loan under this scheme can be permitted by the authority under whose sanctioning
powers the entire proposal falls (Aggregation of both Housing Finance cum Solar system
component).
In case of second/subsequent Housing Loan: Aggregation of liabilities/limits to be done for
deciding the sanctioning authority along with Solar scheme
1.10a DISBURSEMENT:
While disbursing Housing Loan component, all guidelines as applicable to Housing Finance
shall apply.
PM
While disbursing Solar Loan Component on installation of Solar Component, it will be done
directly to dealer and it is to be ensured before disbursement of this loan component that
infra structure for installation of solar equipment is ready for use.
3
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Page 85 of 212
1b. CANARA KUTEER - HOUSING LOAN SCHEME (PRODUCT CODE 619)
1.1b PURPOSE:
 For acquiring a residential site and constructing a house thereon.

 Acquisition and purchase of new or old dwelling units.
 Construction of house on already owned Site /Plot.
1.2b ELIGIBILITY:
Individual house hold Income in Rural, Urban, Metro areas and members of Self Help Groups
I. Up to Rs.1,00,000/- p.a.
II. Above Rs.1,00,000/- & up to Rs.3,00,000/- p.a
1.3b QUANTUM OF LOAN
Maximum quantum of loan:

i. For Household income of Up to Rs.1,00,000/- p.a max quantum is Rs. 5,00,000/-
PM
ii. For Household income of above Rs. 1,00,000/- & up to Rs. 3,00,000/- p.a maximum
quantum is Rs.10,00,000/-
Components of Project Cost:
3
a. Cost of Land/Flat or Construction Cost
:5
b. Cost of Installing Solar Lighting System
c. Cost of ASTRA Smokeless Choola.
04
If loan is covered under Govt. sponsored Scheme, subsidy will be a part of the project cost.
1.4b REPAYMENT:
3
Not exceeding 30 years or 75 years of age whichever is earlier.

02
1.5b SECURITY: Mortgage of Residential site/Property.

/2
1.6b GUARANTEE :
0
Third Party guarantee waived.

/1
Canara Retail Grade (CRG) for retail lending schemes: HO Cir 825/2021 Dated 28.12.2021
26
1.7b OTHER FEATURES:

 Suitable economic activity may also be financed to the household to augment their
8
income.
77
 If required, beneficiaries shall be given free training for Skill Development or Economic
 Development in SIRD or RUDSETI
99
 Income Certificate: Applicant has to submit the Income Certificate from the
Revenue/Designated Authority.
 The dwelling unit shall invariably have provision for toilet, which may be financed by
the Bank/sponsored by the State Govt.
 Beneficiaries can also be sponsored by NGOs/SHGs/Govt. Departments.
1.8b NTH: Shall not fall below 60% of Gross annual income (Cutback not exceeding 40%
of Gross annual income)
Page 86 of 212
1c .CANARA HOME LOAN SUPER GAIN (CASA) SCHEME
1.1c ELIGIBILITY:
Facility shall be made available to new as well as existing Home Loan (sanctioned / outstanding
amount) of Rs.20.00 Lakh and above.
1.2c PURPOSE:
For purchase of House/flat/plot of land. Construction/extension/ repair/renovation of new/
second hand residential flat /house.
1.3c TENOR:
Not Exceeding 30 years of repayment (Including repayment holiday) or 75 years of age
whichever is earlier.
1.4c LOAN AMOUNT: Minimum: Rs.20 Lakh Maximum: No upper limit.
1.5c TYPE OF LOAN: Term Loan up to Sanctioned Amount with EMI.
PM
1.6c ROI/ MARGIN/ LTV RATIO: As applicable to Housing Loan scheme guidelines.
1.7c DRAWDOWN:
3
Only from linked Saving Account for servicing the monthly installment (EMI).
1.8c REPAYMENT/ SECURITY & RELEASE OF DOCUMENTS:

:5
04
As applicable to Housing Loan guidelines.
3
SHALL BE ELIGIBLE FOR BENEFIT OF INTEREST:

02
i. a) Amount of loan must have fully disbursed AND

b) Servicing of 1st EMI fallen due as per sanction terms as on the date of linkage.
/2
ii. The rate of interest applicable to the Saving Account will be configured as zero.
0
iii. The Bank will calculate Home Loan interest on the loan outstanding minus balance in the
inked Saving Account.
/1
iv. Servicing of interest during moratorium period is applicable as per the Housing Loan
Scheme Guidelines.
26
ADDITIONAL FACILITY:
8
Cheque Book, Internet Banking facility for operation in the loan account, ATM cum Debit card
77
shall be issued after full disbursement of sanctioned amount.
1.9c Features:
99
Canara Home Loan Super Gain (CASA) shall be sanctioned as a Term Loan and linked with a
new CASA product account (Saving Bank Account) opened for the same customer. The rate of
interest applicable to the saving account will be configured as Zero. The customers will have
to remit the Equated Monthly Installments (EMIs) through linked saving account only. The
surplus amount parked in the linked Saving Account will be available for withdrawal.
 Any credit balance available in the linked saving account at the end of the day will be
considered as advance payment made in linked home loan account. Consequently, the
Borrower will get the interest benefit in housing loan to the extent of balance available
in the Saving Account at the end of the day.
 For servicing the monthly instalment (EMI) the drawdown of EMI shall be done from
linked Saving Account only.
Page 87 of 212
 The surplus amount deposited in the Saving Account can be withdrawn by the borrower
any time.
 Linked Saving account shall be enabled with additional facilities like ATM, Internet
Banking. The extant guidelines applicable to Housing Loan Scheme of bank, including
those for interest rate, margin, repayment, penal interest, pre-closure penalty etc.,
shall also be applicable to Loans sanctioned under “Canara Home Loan Super Gain
(CASA) Scheme” facility.
 House property shall be taken as security for the facility extended as per the Housing
Loan Scheme.
 Interest is charged on net balance i.e. balance in Term Loan minus balance in linked
Saving Account with monthly rests.
 No extra charges to avail this loan.
 The processing & documentation fee is the same as per Housing Loan guidelines
*****
PM
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99
Page 88 of 212
2. HOUSING LOAN TO CORPORATES (Discontinued w.e.f 05.07.2022)
2.1 ELIGIBILITY:
a. All the partnership firms with satisfactory track record of at least three years with us
including Limited Liability Partnership firms.
b. All the Private Limited and Limited companies having satisfactory track record of at least
three years with us.
c. The firm/ company must be profit earning unit in the last three years and should not have
accumulated losses in the last three years.
d. Existing loan account of the Company, if any, should be regular and standard and also should
not have been restructured during the last three years.
e. SPV/ Subsidiary of Corporate Entities will also be eligible for availing loan under this Scheme
provided.
 The Parent Company fulfils the above mentioned eligibility norms.
 The Parent Company agrees to stand as a Guarantor for Home Loan.
f. Only External Risk Rating (ECR) to be conducted and ‘A’ rated and above corporates with
three years satisfactory dealings with us are eligible under the scheme.
PM
2.2 PURPOSE:
a. Purchase of a ready built house/ flat.
b. Construction of house/ flat.
3
c. For taking over of housing loans from other finance companies / financial institutions/Banks.
:5
d. Loans for purchase of flats under construction can also be considered.
e. To provide Home Loans to Corporate Entities (Public & Pvt Ltd Companies, Partnership Firms
04
including LLPs) for construction/ acquisition of Residential Units in the name of the Company
for use by their Directors/ Promoters and their Employees.
f. Land purchase is not eligible in this product, hence only construction on own land is
3
permitted.
02
2.3 LOAN QUANTUM:

a. As per Housing Loan guidelines.
/2
b. Minimum amount: 50.00 Lakh

0
2.4 RATE OF INTEREST: RLLR + 125 BPS

/1
2.5 SECURITY:
(a) Equitable mortgage of the property to be acquired/ constructed with the help of Bank
26
Finance and registration of mortgage charge with Registrar of Companies and CERSAI with in
the stipulated time frame.
(b) Personal Guarantee of Promoter Directors.
8
(c) The Company will not be permitted to extend paripassu charge on House Property,
77
mortgaged to the Bank for Home Loan, for securing any other loan/ advances to the Company
during currency of Home Loan.
(d) However, the company may be permitted to extend second charge for securing any other
99
loan/ advances availed from our Bank. However, extension of second charge will not be
permitted during moratorium period of Home Loan and also if the Home Loan account is
irregular. Further, extension of second charge will not be permitted in favor of other Banks/
FIs under any circumstances. An undertaking in this regard will be obtained from the
Company.
(e) If the property is already mortgaged with our bank against financials/ nonfinancial facilities
and property is under approved plan for residential use, Circle Head and above authorities can
take credit decision subject to compliance of margin and LTV norms mentioned in point no D
here above.
(f) Monitoring & RLLR reset as and when change by RBI:
Page 89 of 212
RLLR will be reset as and when the same is changed by RBI. However, the spread will not be
changed during subsequent years on account of any upward or downward movement in rating
of company. Property inspection is to be conducted as per existing guidelines.
(g) Geographic Locations of the Property to be acquired/ constructed:

Home Loans under this Scheme will be made available for acquiring residential property
located within the Municipal Area of Metro and Urban BPR centers only.
However, loans above Rs 5 Crores for acquisition of a single dwelling unit will be made
available with in Municipal Corporations areas of Delhi, Mumbai, Pune, Chennai, Kolkata,
Ahmedabad, Chandigarh, Bengaluru and Hyderabad Centers only.
Registration of charge with ROC wherever applicable.
2.6 REPAYMENT:
Maximum 15 Years (Maximum including moratorium period) in monthly/ quarterly/ half yearly
installments.
PM
2.7 REPAYMENT HOLIDAY: As per Housing Loan guidelines.
2.8 DELEGATION OF POWERS: CGM/GM-HO-CAC and above authorities up to their delegated
3
powers.
:5
2.9 MARGIN/ LTV RATIO: At par with Housing Loan guidelines.
04
*****
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Page 90 of 212
3. HOME IMPROVEMENT LOAN (PRODUCT CODE 618) Discontinued w.e.f 14.02.2023
3.1 PURPOSE:
3.1. Loan to individuals for furnishing the house/ flat as under:
(i) along with our loan to acquire/ construct house/ flat OR

(ii) along with our loan to repair/ renovate house/ flat OR
(iii) Independent of our loan mentioned in (i) & (ii) above.
3.1.2. Loan can be made available under the scheme to purchase household furniture items,
refrigerator, fans, air conditioner/s, to put up wardrobes or any other household item/s.
3.1.3 . Such loans can be granted in the following cases too:
(i) Where a loan under Housing Finance Scheme was earlier obtained from us and the liability
is still subsisting without overdues.
OR
PM
(ii) Where a housing loan has been obtained from other banks/ housing finance institutions.
3.2 ELIGIBILITY:
3
3.2.1. Individuals complying with the eligibility criteria of Housing Finance scheme are
:5
eligible for loan under this scheme in respect of 3.1 (i) & (ii) above.
OR
04
3.2.2. In respect of the 3.1 (iii) & 3.1.3 (i) &(ii),
3
3.2.2.1 All individuals (including professionals and salaried class) who are credit worthy and
02
good for the amount.
3.2.2.2 Salaried individuals should have a minimum monthly net take home salary of 25% of
/2
their gross salary or Rs.2000/- after meeting the loan instalments for the proposed loan.
0
3.2.2.3 Professionals and other non-salaried persons should have a minimum annual income of
/1
Rs. 50,000/- to be evidenced by Income tax assessment order/ return. (However, in deserving
26
cases, production of ITAO/IT return may be waived provided the sanctioning authority is
satisfied about the credit worthiness / repayment capacity of the borrower).
3.2.2.4 Where the borrower is our existing customer, the branch / sanctioning authority should
8
satisfy that the account is well operated during the last 6 months. This condition may be
77
waived in deserving cases by the sanctioning authority.

99
3.2.2.5 There is no bar / restriction for financing a new customer who is not already banking
with us. But, the proposed borrower should be properly introduced to the Bank and satisfy
other eligibility norms.
3.2.2.6 In the case of salaried persons, as far as possible, it may be ensured that the salary is
credited to the operating account of the customer at our branch.
3.2.2.7 Alternatively, a mandate may be got lodged with the employer to facilitate easy
recovery of installments. The sanctioning authority may, however, waive this stipulation on
case to case basis on merits.
Page 91 of 212
3.2.2.8 The sanctioning authority, at their discretion may take into account the other income
/ income of the spouse also for satisfying the above eligibility criteria instead for 3.2.2.2 and
3.2.2.3 above.
3.3 LOAN QUANTUM:
3.3.1 To facilitate sanction of additional loan for the purposes mentioned above along with
our loan under our Housing Finance scheme, additional one year’s gross salary/ gross income
over and above the normal eligible amount for housing finance may be accepted.
3.3.2. In other cases, one year’s gross income/ salary may be reckoned to determine the loan
quantum under this scheme.
3.4 MARGIN:
If the loan under this scheme is availed as a part of housing, finance, then, the margin as
stipulated under housing finance may be prescribed for this loan too. In other cases, a uniform
margin of 20% may be stipulated.
PM
3.5 RATE OF INTEREST: As advised by HO from time to time
The rate of interest on Home Improvement Loans shall be:
3
Sl No Parameters Rate of Interest
1 Where the EMT of the House / Flat concerned is
:5
available in respect of loan availed as part of our
The rate of interest will be
same as applicable to
04
housing finance or where housing finance earlier housing loan as indicated
availed by the party from our Bank (without any above.
overdues)
3
2 In other cases, i.e., construction / purchase of a As advised by HO from time

02
house where loan under Home Improvement Loan to time.

scheme on the collateral security of mortgage of
other property.
0 /2
3.6 REPAYMENT:
/1
The maximum permissible tenor of the loan will be the residual tenure of underlying Home
Loan or 7 years, whichever is lower, subject to liquidation of the loan before the borrower
26
attains the age of 70 years. However, the borrowers can also opt for a lower tenor.
3.7 SANCTIONING AUTHORITY:

8
The Home Improvement Loans can be sanctioned to Existing Housing Loan Borrowers up to 20%
77
of the total Housing Loan sanctioned amount by taking mortgage of House property subject to:
3.7.1 In Case of Branches not attached to RAHs (Wherever applicable):
99
i. Up to Rs.5.00 Lakh or One Year Annual Income whichever is less by the Branch-in-Charge.
ii. Above Rs.5.00 Lakh upto Rs.15.00 Lakh.
OR
One Year Annual Income whichever is less by RO-Head-CAC on case to case basis.
3.7.2 In case of branches attached to RAH:

i. Up to Rs. 10.00 Lakh or One year annual income whichever is less by the RAH in Charge, for
their linked branches.
ii. Above Rs.10.00 Lakh up to Rs.15.00 Lakh.
OR
One Year Annual Income whichever is less by RO-Head-CAC on case to case basis.
3.7.3 Above Rs.15.00 Lakh up to Rs.25.00 Lakh by Circle Head CAC on case to case basis.
Page 92 of 212
3.7.4 Above Rs.25.00 Lakh by CGM/GM-HO-CAC on case to case basis.
Any proposal for permission beyond what is provided for in paras 1 to 4 above, can be permitted
only by CAC of the Board.
3.8 SECURITY:
3.8.1 The assets created out of this loan should be taken as security by way of hypothecation
besides the continuing security of the concerned house/ flat.
In case where the Housing Loan is not availed from our Bank, in such cases loan shall be granted
only in cases where mortgage of the house property or any other alternate
property is available.
3.8.2 Suitable co-obligation/ personal guarantee may be obtained. However, this stipulation
may be selectively waived by the sanctioning authority.
3.9 PROCESSING CHARGES:
0.50% of the Loan amount (Minimum of Rs 1,500 and Maximum of Rs 10,000).
All the out-of-pocket expenses like, inspection charges, periodical inspection charges as per
PM
guidelines should be recovered as and when incurred.
3.10 INSPECTION CHARGES:
3
1) Loan amount up to Rs.10.00 Lakh: Rs. 200/- per borrower per inspection with a Maximum
of Rs 600/- per year.
:5
2) Loan amount above Rs.10.00 Lakh: Rs.300/- per borrower per inspection or actual expenses
incurred, whichever is higher.
04
3.11 Other Matters:
Inspections include Pre-Sanction inspection, Post-Sanction inspection and regular follow up
3
inspections during the currency of the loan and these are to be conducted as follows:
02
a. In case of regular Housing Loan accounts and Loans involving mortgage, once in a year and/
or at the time of verification of tax paid receipts/ insurance etc. For Housing Loans under
/2
disbursement, inspections have to be conducted as per stage of disbursement.

0
b. In case of irregular accounts, visits as per need based to recover the dues.
/1
3.12 Disbursement:
26
Loan amount under this scheme can in the normal course be disbursed only after acquiring
ready built house/ flat or completion of construction of house/ flat or completion of repairs/
renovations etc., where the loan is availed along with housing finance. However, the
8
sanctioning authority may specifically permit disbursing the same earlier if he is satisfied with
77
the genuineness of the case made for the purpose in the proposal. In case this loan is
sanctioned independent of housing finance, then, the loan may be disbursed against invoice
99
etc., and ensuring the end use. The security inspection report is to be lodged with the loan
documents.
a) The loans under this scheme for furnishing the house/ flat to be separately maintained.
b) The lending under the segment should be classified under non-priority.
*****
Page 93 of 212
3a RAIN WATER HARVESTING LOAN (PRODUCT CODE 618)
Rainwater harvesting (RWH) is the process of collecting and storing rain water in a scientific
and controlled manner for future use.
3a.1 PURPOSE:
Installation of Rainwater harvesting unit.
3a.2 ELIGIBILITY:
To individuals constructing house, making modification of existing house.
3a.3 QUANTUM OF LOAN:
75% of the estimated cost as per the unit cost stipulated here-below:
 Plot size- up to 1500 sq.ft: Rs 57700/-
 Plot size- More than 1500 sq.ft upto 2400 sq.ft: Rs 73000/-
 Plot size- More than 2400sq.ft upto 5000 sq.ft: Rs 82000/-
 Plot size- More than 5000 sq.ft: Rs 185000/-
PM
3a.4 MARGIN: 25%.
3a.5 CLASSIFICATION: Non- Priority Other retail loans.
3a.6 DISBURSEMENT OF LOAN: As far as possible specifically and in 2-installments.
3
3a.7 GUARANTEE: Suitable third party guarantee.
3a.8 SECURITY:
:5
04
1. Hypothecation of pipeline with barrel, filter etc.
2. Continuation of mortgage of residential property in the case of existing housing loan
3
borrowers.
02
3. No collateral security in case of borrowers enjoying Canara Budget (SyndSaral)-salaried class

even though they have housing loans with other Banks or FIs subject to production of regularity
/2
certificate from concerned Bank /FI.

0
3a.9 RATE OF INTEREST:

As communicated by HO from time to time (as applicable to Home Improvement Loan Scheme
/1
guidelines).
26
3a.10 REPAYMENT: Loan shall be repaid in 60 EMIs.

3a.11 PROCESSING / INSPECTION CHARGES:
8
As applicable to Home Improvement Loan Scheme guidelines.

77
3a.12 DOCUMENTATION CHARGES: Nil.

99
3a.13 SANCTIONING AUTHORITY: As applicable to Home Improvement Loan Scheme

guidelines.
3a.14 OTHER CONDITIONS:
1. Branches/ROs shall canvass the product to all the existing and Prospective housing loan
customers.
2. Branches may hold awareness camps to the existing home loan customers regarding
installation of rainwater harvesting units.
3. Branch shall conduct proper due diligence on the borrower and his income while appraising
the loan.
*****
Page 94 of 212
4.HL NP CRE (Commercial Real Estate):Product Code 627
COMMERCIAL REAL ESTATE – RESIDENTIAL HOUSING (CRE-RH) A SEPARATE SUB-SECTOR
VIZ., CRE-RESIDENTIAL HOUSING (CRE-RH) CARVED OUT OF COMMERCIAL REAL ESTATE
SECTOR
4.1 Aggregation of liabilities/limits to be done for deciding the sanctioning authority in case
of sanction of second/subsequent loan under the same Retail Lending scheme. Further, in case
of Housing Loan, aggregation of liabilities/limits of all variants of Housing loans of the party
will be done irrespective of the fact that whether the Housing loans belong to Non-HL-CRE
category (i.e. up to two Housing units) or HL-CRE category (i.e., 3rd & subsequent Housing
units).
4.2 Regarding stipulation of Rate of Interest: While sanctioning second/subsequent loan

under any Retail Lending Scheme, liabilities of existing loans under same Retail Lending
scheme should not be aggregated with the limit of fresh loan under that Retail Lending scheme
for the purpose of deciding interest rate applicable to fresh loans.
PM
All other guidelines to be adhered as per Housing loan viz., Eligibility, Quantum, Margin etc.,
4.3 Exposures which should be classified as CRE.
3
:5
condominium or co-operative residential housing units in a single building or complex also fall
within the scope of the residential mortgage category and national supervisors may set limits
04
on the maximum number of housing units per exposure. Therefore, such loans need not
necessarily be classified as CRE Exposures. However, if the total number of such units is
more than two, the exposure for the third unit onwards may be treated as CRE Exposure
3
as the borrower may be renting these housing units and the rental income would be the
02
primary source of repayment.

4.4 Commercial Real Estate – Residential Housing (CRE-RH):
/2
A separate sub-sector viz., Commercial Real Estate – Residential Housing (CRE-RH) has been
0
carved out from Commercial Real Estate sector.

/1
Loans to builders/ developers for residential housing projects (except for captive
26
consumption) under CRE segment. Such projects shall ordinarily not include non-residential
commercial real estate.
8
 Integrated housing projects comprising of some commercial space (e.g. Shopping

77
complex, school etc.) can also be classified under CRERH, provided that the commercial area
in the residential housing project does not exceed 10% of the total Floor Space Index (FSI) of
the project.
99
However, the following will not be classified under CRE-RH, but will be classified as CRE:
In cases where the FSI of the commercial area in the pre-dominantly residential
complex exceeds the ceiling of 10%.
Exposures NOT to be treated as CRE
If the repayment primarily depends on other factors such as operating profit from business
operations, quality of goods and services, tourist arrivals etc., the exposure shall not be
counted as Commercial Real Estate.
Page 95 of 212
Bank Finance to Real Estate including Housing Projects:
As regards financing of land acquisition by banks, banks may extend finance to public agencies
and not to private builders, for acquisition and development of land provided it is a part of
the complete project including development of infrastructure such as water systems, drainage,
roads, provision of electricity, etc. Where land is acquired and developed by State Housing
Boards and other public agencies, banks may extend credit to private builders on commercial
terms by way of loans linked to each specific project.
Banks may issue guarantees to private builders favouring Government Departments towards
External Development Charges and Internal Development Charges for development of land.
However, banks are not permitted to extend fund based or non fund based facilities to private
builders for acquisition of land even as part of a housing project.
Bank finance can be granted to individuals for purchase of a plot, provided a declaration is
obtained from the borrower that he intends to construct a house on the said plot, within such
period as stipulated by the Bank (currently 18 months).
PM
FOR HOUSING LOANS (3RD AND SUBSEQUENT DWELLING UNITS) CLASSIFIED AS COMMERCIAL REAL
ESTATE I.E., HL-CRE*:
(Rs. In Lakh)
3
Individual Authority/ CACs Sanctioning Powers
CMs of ELBs/CMs of VLBs
:5 20**
04
AGM in ELB 50**
DM/AGM in RAH (HEAD) 100
100
3
DM-RO-CAC#/DM-CO-CAC##
02

DGM Heading Branches/ DGM-RO-CAC 250
/2
DGM-CO-CAC 300
400
0
CGM/GM–CO-CAC
Above Circle Head CAC up to 1000
/1
CGM/GM-HO-CAC
ED-CAC Above 1000
26
* Applicable rate of interest for 3rd unit 0.25% and 4th and subsequent unit shall be 0.50% more than the Card
rate on general Housing loan (All variants).
8
**There are no sanctioning powers for sanctioning Housing loans at ELBs/VLBs.

77
# DM-CAC at RO (other than RO Head) is not in existence as per extant guidelines.

## DM-CO-CAC is not in existence as per extant guidelines.
99
*****
Page 96 of 212
5.CANARA HOME LOAN PLUS (PRODUCT CODE -629)
5.1 ELIGIBILITY:
a. In case of existing Housing Loan Customers:
Individuals aged between 18 and 75 years, who have already availed Housing Loans with
satisfactory repayment of the loan promptly for irrespective of the period of run with our Bank
are eligible subject to fulfilling the following conditions.
i. Availability of EMT to be ensured.
ii. Project Completion Certificate should be obtained.
iii.Occupancy certificate should be obtained
iv.After Completion of Repayment Holiday Period (if any)
v. Sanctions to be made by the respective Sanctioning Authority up to their delegated powers
selectively on case to case basis duly ensuring that there is no dilution in LTV and NTH norms.
In case of joint loan accounts, the age of the youngest borrower shall be reckoned in line with
Housing Loan guidelines.
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b. Loan account with NIL overdues.
c. Staff of our Bank are not eligible under this scheme.
Wherever loans are availed under OD facility prior to 07.02.2020: Branches /RAHs to
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adhere strict guidelines as issued under HO Cir No. 845/2020 dated 04.11.2020.
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At the time of renewal, the existing Canara Home Loan Plus OD facility will be charged with
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an additional 0.50% ROI as per their respective CICs.
OR
The existing Canara Home Loan Plus-OD accounts (Sanctioned prior to guidelines of HO Cir.
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No. 66/2020 dt.07.02.2020) may be converted to Term Loan after excluding period run under
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existing OD facility, by the respective Sanctioning Authority. Conversion of Term Loan from
the date of expiry of OD facility.
OR
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during the tenure of OD facility, to be considered as per the customer’s request/ option duly
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fulfilling the existing scheme guidelines under Canara Home Loan plus-Term Loan.
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5.2 PURPOSE:
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To meet domestic needs/medical expenses/educational expenses of children / dependents

/unforeseen contingencies etc. but not for speculative purposes.
5.3 TYPE OF LOAN: Term Loan facility.

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5.4 QUANTUM OF LOAN: Quantum of loan shall be arrived at as under:

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5.4.1. For Salaried Class:
5.4.1.1: 24 months’ gross salary subject to a maximum of Rs.50.00 lakhs.

- However, loan quantum shall be arrived at in such a way that the combined liability of the
borrower under Housing Loan and the proposed “Canara Home Loan Plus” shall be complying
(within the) the LTV norms as applicable to Housing Loan prevailing as on the sanction date of
Canara Home Loan Plus.
- NTH shall not be less than 25% of gross salary at the time of sanction of Home Loan Plus after
deducting EMI towards both the existing Loans and also loan under the proposed “Canara Home
Loan Plus”.
5.4.2. For Non-Salaried Class:
Page 97 of 212
5.4.2.1: Two times of 3 years average gross income of the applicant subject to a maximum
of Rs.50.00 lakhs.
However, loan quantum shall be arrived at in such a way that the combined liability of the
borrower under Housing Loan and the proposed “Canara Home Loan Plus” shall be complying
(within the) the LTV norms as applicable to Housing Loan prevailing as on the sanction date of
Canara Home Loan Plus.
-NTH shall not be less than 30% of gross income at the time of sanction of Home Loan Plus
after deducting EMI towards the existing Loans and also loan under the proposed “Canara Home
Loan Plus”.
5.5: Where Housing Loans are availed for (a) purchase of plot and construction; or (b) only
for construction on existing plot, valuation of the property may be got done after completion
of the project and the fresh valuation may be reckoned for determining the loan quantum.
Where housing loan is availed for outright purchase of property, value at the time of
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sanction only shall be reckoned. However, after ensuring gap of minimum two years between
two valuations, fresh valuation may be reckoned for determining the loan quantum.
5.6 MARGIN: Nil.
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5.7 OTHER CONDITIONS:
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1. CIR from CICs shall be drawn before acceptance of proposal for processing.
2. Existing loan accounts of customer should be regular throughout before extending this
loan facility (i.e. loan should have remained a standard asset throughout).
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3. Before disbursement of the “Canara Home Loan Plus” advance, it is to be ensured that EMTs
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created prior to 31/03/2011, are already registered with CERSAI.

4. In case the borrower wants to pre-close the housing loan liability, then the liability under
“Canara Home Loan Plus” loan has to be got cleared first.
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5.8 RATE OF INTEREST: As advised by HO from time to time.

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5.9 SECURITY:
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 EMT of the property already under mortgage to Bank under Housing Loan shall be continued.
 Further EMT is to be created for “Canara Home Loan Plus”.
 Release of security is only on closure of both loans.
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5.10 REPAYMENT:
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To be repaid in 180 EMIs or left over repayment period for the existing Housing Loan whichever
is less.

Loans under this scheme can be permitted by the same authority up to Circle Head- CO/CAC.
In case Housing Loans permitted by authorities at Head Office, the loans under Canara Home
Loan Plus can be permitted by Circle Head CO-CAC as per scheme guidelines.
Page 98 of 212
2) Loan amount above Rs.10.00 Lakh: Rs.300/- per borrower per inspection or actual
expenses incurred, whichever is higher.
(Out of Pocket Expenses if any to be collected separately)

A) In case of regular Loans, once in a year and/ or at the time of verification of tax paid
receipts/insurance etc.
B) In case of irregular accounts, visits as per need based.
5.13 OTHER TERMS & CONDITION:
Branches/Circles to ensure:
a. No pending inspection remarks exist for existing Housing Loan.

b. Latest Inspection report on the security is to be kept on record.
c. Latest tax paid receipt is to be obtained.
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d. Branches have to ensure compliance of guidelines relating to registration of EMTs with
CERSAI which has been made mandatory even in respect of EMTs put through prior to
31/03/2011.
e. All other terms and conditions as applicable to secured loans shall apply.
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Page 99 of 212
6. CANARA HOME LOAN SECURE (PRODUCT CODE 631)
6.1 PURPOSE
For funding the one time insurance premium payable to M/s Canara HSBC Life Insurance
Company Limited for availing their Group secure life insurance term plan to cover risk under
life and Total Permanent Disability for existing as well as new home loan borrowers.
6.2 ELIGIBILITY
All Canara home loan borrowers are eligible to opt for life insurance cover. This option will be
available to existing housing loan borrowers as well as to the new borrowers.
6.3 QUANTUM OF LOAN
Equivalent to the one time premium of life insurance to cover under Group secure plan of
CHOICe.
6.4 NATURE OF FACILITY: Term Loan.
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6.5 LOAN TERM- REPAYMENT
For New Housing Loans – (Min. & Max.)
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 Minimum loan tenor of the Canara Home Loan secure is 2 years.
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 The maximum tenor of the Canara Home Loan Secure is 15 years or tenor of the HL
whichever is less.
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Existing HL accounts –
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 Tenor of the CHLS is 15 years or residual tenor of the HL whichever is less. The
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repayment to commence from next month after disbursement of loan.

6.6 RATE OF INTEREST: As communicated by HO time to time
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SUM ASSURED
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A minimum of 100% and a maximum of 120% of Housing loan sanctioned amount or outstanding
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liability of the Loan amount (for New Housing Loan or Existing Housing Loans) i.e., 100% of the
New Housing loan sanctioned amount or Existing Housing Loan outstanding liability & proposed
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Canara Home Loan Secure Premium amount.

RISK COVERAGE :
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Coverage of the life and Total Permanent Disability (TPD) of the borrower.
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6.7 NTH : As per existing general housing loan guidelines.

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Sanctioning authority under Canara Home Loan secure for existing Housing Loan customers:
a. In case of branches attached to RAHs:
i. Respective Housing Loan Sanctioning Authority upto RAH Head.
ii. Housing Loan falls under the sanctioning power of RO/CO/HO, the respective RAH Head
can sanction.
b. Wherever branches not attached to RAHs, then respective Sanctioning Authority upto RO
Head CAC.
c. In case of Delegation powers fall under CO/HO then respective RO Head CAC.
Canara Home Loan Secure to be sanctioned along with Housing Loan for all new Sanctions.
Page 100 of 212

6.9 MARGIN / PROCESSING/DOCUMENTATION & INSPECTION CHARGES : NIL
6.10 SECURITY:
A suitable clause for general lien over the title deed of the mortgaged property to be
incorporated. (a suitable undertaking letter as per Annexure to be obtained from borrower)
6.11 DOCUMENTATION: As applicable to Non-priority personal loans.
SURRENDER BENEFIT:
Policy surrender value is payable provided the member repays the outstanding loan amount
in full and submits a surrender request to the company. However, in single premium option,
the surrender benefit will be available from the end of first year.
The surrender benefit is given below:
60% x Single premium x [Unexpired term/ Cover term] x [Reduced sum assured/ Initial sum
assured]
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6.12 APPRAISAL
So separate appraisal is required for considering the eligibility and loan quantum under the
scheme.
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6.13 OPTION LETTER:
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An option letter from the customer who opt for life insurance policy, to be obtained and kept
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with the loan documents.
6.14 CLASSIFICATION :
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The proposed loan facility to be considered under “Personal Loans- Non Priority Sector”
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6.15 DISBURSEMENT:
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One single disbursement of loan amount equivalent to the amount of premium payable to avail
term insurance for covering the life of the applicant. The loan proceeds to be necessarily
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transferred to the account of M/s Canara HSBC OBC Life Insurance Company Limited.
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6.16 PRE CLOSURE: Pre closure of the loan account is permitted without any charges.
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6.17 OPERATIONS OF ACCOUNT IN CBS:

The loan will be opened on the basis of CBS’s customer ID
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All other guidelines to be strictly adhered as updated.
6.18 GENERAL CONDITIONS:

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1. It is an optional facility available to HL borrowers to take Insurance policy from any Insurance
company. However, if they are taking from CHOICE (being tie-up Partner Company) and opting
for One Time Life Insurance secure policy they can avail loan with us to meet the policy
premium.
2. Insurance coverage is available to a maximum of 3 joint borrowers as below:
There are 2 options for joint borrowers:
Option 1: Joint Basis:
- Each of the joint borrowers will be insured for 100% of the sum assured. In case claim is
paid for deceased joint borrower, cover ceases for the surviving joint borrower(s).
Option 2: Loan Share Basis:
Page 101 of 212

Each of the joint borrowers is insured up to his/her share of loan as mentioned in the
membership form. If the claim is paid on death/occurrence of Total Permanent Disability
(TPD) of a joint borrower, then the Insurance Cover shall cease only for that Insured
Member. However, the Insurance Cover shall continue for the surviving Joint Borrower(s)
to the extent of their share(s) at the same premium agreed at the time of issuance of the
Certificate of Insurance.
Branches / offices have to ensure Canara Home Loan Secure loan account to be closed
first before closure of Housing Loan.
Title deeds of mortgaged property will be released to the borrower on closure of both
Housing Loan and Canara Home Loan Secure.
Latest EC to be obtained at the time of sanctioning Canara Home Loan Secure for
existing HL customers.
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Page 102 of 212

7. HOUSING LOAN SCHEME FOR AGRICULTURISTS (PRODUCT CODE 661)
7.1 PURPOSE:
As applicable to General Housing loan Scheme.
The property to be acquired should be non- agricultural, having valid documents for usage for
Housing / non- agricultural purposes and preferably in Urban / Semi Urban and growing
townships, i.e. loans should not be given for construction or purchase of houses on agricultural
Lands.
7.2 ELIGIBILITY:
Housing loan under this scheme is permitted to be considered for the following category of
borrowers:
- Agriculturists
- Dairy and Allied activity Farmers
- Planters
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- Horticulturists
All agriculturists owning and cultivating agricultural lands of more than 5 acres (Irrigated lands)
/ 10 acres of Dry lands in their name/s, subject to the following:
a) They should be our existing customers and should have satisfactory dealings with us for the
3
last two years.
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b) Their past dealings should be satisfactory. 04
In case of eligible applicants who are not having dealings with us for the last 2 years and in
case of applications from new branches, RAH Head (for mapped branches)/ RO-Head-CAC (for
not mapped branches) and above authorities, depending on merits, can selectively relax this
condition subject to ensuring that applicant has satisfactory track record with his present
3
Banker and required evidence to that effect is obtained.

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In case the applicants are not banking with any other Bank or with our Bank earlier and
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otherwise qualify for the Housing loan under the scheme, in such cases also the RAH Head (for
mapped branches)/ RO-Head-CAC (for not mapped branches) can permit the Housing Loan by
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ensuring the credit-worthiness and genuineness of the parties.

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Revised Guidelines:
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Simple Mortgage can be put through by branches/offices only after obtaining permission from
the following authorities:
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Sanctioning Authority Permitting Authority

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Below RO Head CAC / Individual Authority RO Head CAC

RO Head CAC and above Respective CACs
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Permitting Authority may seek view of Legal Section of Circle before permitting the above
permission.
The eligibility with regard to the age of the applicant/s- As applicable to General Housing Loan
guidelines.
In case the income is not sufficient to meet the housing loan and if there are other members
in the family who own separate Agricultural lands and have regular income, they can join the
loan as co-borrowers.
Apart from mortgage, co-obligation / personal guarantee of a person acceptable to the Bank
may be obtained.
Page 103 of 212

For considering Housing Loans to agriculturists engaged in Dairy farming, Poultry farming,
Plantation Crops and Horticultural produce, the minimum land holding levels need not be
applied. These categories of borrowers can be financed provided their minimum gross annual
income is Rs.5.00 Lakh.
7.3 INCOME PROOF:
For Housing Loans for agriculturists, income certificate issued by the Tahsildar/ Mandal
Revenue Officer/District Revenue Authorities or any competent authority may be accepted as
proof of income for reckoning the housing loan quantum if Income Tax returns are not
available.
Original income certificate issued by the Tehsildar/Mandal Revenue Officer/District Revenue
Authorities or any competent authority should be obtained. However, branches may also cross
check/verify the originals of land records with regard to yield, cost of cultivation, net return
etc., to ensure the income of party. Necessary due diligence is to be exercised by the branches
in this regard.
7.4 OTHER GUIDELINES:
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a. Selection of borrowers should be as per norms.
b. Strict compliance of KYC norms/ in respect of seller of the property also.
c. Credit appraisal standards are not diluted under any circumstances, notwithstanding
aggressive competitive measures adopted by the market players
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7.5 QUANTUM OF LOAN:
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Maximum eligible quantum of loan shall be computed in the same way, which is used for
04
computing maximum eligible quantum for General Housing loans.
Where borrowers or any of the joint borrower/s are having non-agricultural income of regular
3
nature (either through salary or through business or profession), the same may also be
02
reckoned for determining the maximum eligible loan quantum and repayment capacity.
However, adding the non-agricultural income shall be subject to the income being declared in
ITAR or subject to production of documentary evidence, acceptable to the Bank.
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Subject to the above, Housing Loans quantum as per General Housing Loan guidelines, annual
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income of the borrower/joint borrowers (agriculture plus non agriculture) can be considered
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after establishing repayment capacity by appraising the project as an agriculture term loan
i.e., commitments under Agriculture Term Loan, Working Capital Interest (KCC/KOD) etc.,
26
shall be taken into consideration to arrive at Net Income. Housing Loan is subject to
maintaining Net Take Home (NTH) after proposed instalment as applicable to general Housing
Loan. It may be noted that income of joint owner of agricultural lands is permitted to reckoned
8
only if the joint owner becomes a joint borrower by joining execution of loan documents.
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7.6 Arriving Quantum of Loan:

In addition to the applicant’s income, Income of spouse/ children/parents/ siblings may be
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considered for arriving at maximum loan amount subject to following conditions:
a) If the proposed property is held jointly with the spouse/ children/ parents/ siblings then all
the joint holders of the property should join as co-borrower, but in cases where the property
is held in single name of the borrower the spouse/children/ parents/siblings may join as co-
borrower.
b) Co-borrowers should be employed / engaged in business / profession etc. for a minimum
period of one year and has a steady source of income evidenced by salary certificate, Form 16
or Income Tax Return. The prescribed NTH to be maintained by deducting EMIs of existing &
proposed loans.
The changes are effective for first as well as to subsequent Housing Loans.
Page 104 of 212

7.7 HIGHER QUANTUM OF LOAN/ NTH / MARGIN ON PROJECT COST/ RATE OF INTEREST
As applicable to General Housing Loan guidelines

ROI is as advised by HO from time to time. (As applicable to General Housing Loan guidelines)
If the finance is for acquiring third or subsequent dwelling unit, loan should be classified under
HLNP- CRE and such loans shall carry interest rate of 0.25% and 4th and subsequent 0.50% over
and above the rate of interest applicable for general housing loans.
7.8 SECURITY
The loan shall be secured by mortgage of the house / flat, which is acquired through finance.
All other guidelines are as applicable to General Housing Loan Houses / flats to be constructed
/ purchased even at centres other than their villages can also be financed subject to presence
of our branch.
7.9 REPAYMENT HOLIDAY
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As per our General Housing loan.
The moratorium period shall not exceed 3 harvesting seasons in case of half yearly installments
and 2 harvesting seasons in case of yearly installments.
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However, the repayment to start from the immediate harvesting season during which the
completion of House /Flat take place.
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Page 105 of 212

8. HOUSING FINANCE TO NRIs (PRODUCT CODE 662)
8.1 PURPOSE OF THE LOAN:
Loan shall be considered for:

a. Purchase of a ready built house / flat.
only site shall not be considered. In case of loan for purchase of plot & construction thereon,
utilization of loan amount for purchase of plot to be restricted to 60% of eligible/sanctioned
loan amount.
d. For undertaking repairs, renovation, upgradation, creation of additional amenities, subject
to the satisfaction of the Bank and monetary ceiling of Rs.15 Lakh.
e. For taking over of housing loans from other finance companies /financial institutions/Banks.
f. For acquiring second house / flat where the borrower is already having a house / flat with
or without loan.
g. Loans for purchase of flats under construction can also be considered under the scheme
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subject to securities stipulated under Para- Security given below.
8.2 ELIGIBILITY:
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 All Non Resident Indians having valid Indian passport and Persons, Indian Origin (PIO)
having foreign passport & a person registered as overseas citizen of India (OCI) holding
OCI card.
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 Foreign Passport
 Minimum age 21- years and maximum age by which loan is to be repaid is 60 years
 Spouses and close relatives of NRIs who are residents can join with NRI as joint
applicants.
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 Steady source of income and minimum employment in abroad is 2 years having valid
02
job contract/work permit.

 The applicant should have NRI status for atleast 3 years.
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 Circle Head-CO- CAC and above authorities can very selectively permit following
relaxation up to their delegated powers;
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- Minimum employment abroad of 2 years to 1 year with valid job contract/work permits.
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- NRI Status from 3 years to 2 years.

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8.3 LOAN AMOUNT:
Maximum loan amount shall be Four times of annual gross income subject to NTH of 40%
8
after proposed EMI and meeting the margin requirements.

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RAH Head/RO Head-CAC/AGM-CO-CAC up to their delegated powers and above sanctioning

authorities can relax the following upto their delegated powers in Respective of Housing Loan-
99
Higher quantum of loan up to 5 years of gross annual salary/Income.
Computation of Loan Quantum & NTH:
The Income of Spouse/Father/ Mother/ Son/Unmarried Daughter may be added for computing
the quantum of eligible amount of Housing Loan and also to determine repayment capacity
(NTH) by the respective Sanctioning Authority, subject to their joining as Co-borrowers and
fulfilling the eligibility norms.
Income of brother/sister MAY NOT be added for this purpose.
Page 106 of 212

8.4 MARGIN (ON PROJECT COST): As applicable to Housing Loan.
In case of Repairs & Renovations, Expansion of existing unit, Expansion of existing unit,
Upgradation and creation of additional amenities, a uniform margin of 25% on project cost
irrespective of Housing Loan amount.
8.5 OTHER MATTERS:

a. In case of regular Housing Loan accounts and Loans involving mortgage, once in a year
and/ or at the time of verification of tax paid receipts/insurance etc. For Housing Loans
under disbursement, inspections have to be conducted as per stage of disbursement.
b. In case of irregular accounts, visits as per need based to recover the dues.
8.6 DISBURSEMENT:
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Where housing loans to NRIs are considered for construction of house, existing guidelines
relating to stage-wise disbursement need to be strictly followed. In other words, disbursement
should necessarily be linked to completion of various stages of construction with last
disbursement coinciding with completion of the project.
3
8.7 REPAYMENT: Mode of Repayment:
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• Repayment in EMIs (Equated Monthly Installments).
• Remittances from abroad through normal banking channels.
• Funds transfer from NRE / FCNR (B) / NRO accounts.
3
• Remittance from local funds by close relatives.

02
• ECS mandate/PDCs lodging to be ensured as the case may be.
8.8 REPAYMENT PERIOD:

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Maximum 30 years or up to the age of 60 years (the age by which the loan should be fully
repaid) of the borrower, whichever is earlier.
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Circle Head-CO-CAC and above authorities can very selectively permit up to their delegated
26
powers the repayment period up to 30 years or till the borrower attains the age of 70 years
8.9 REPAYMENT HOLIDAY: As applicable to General housing loan guidelines

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8.10 SECURITY:
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 Equitable mortgage by deposit of title deeds.

 Registered mortgage when considered necessary.
 Guarantee of suitable resident Indian acceptable to Bank on case to case basis.
Loans for purchase of flats under construction can also be considered under the
scheme subject to the following:
Borrowers furnishing collateral security by way of mortgage of alternate property
or pledge / assignment of approved securities equal to the loan amount. – TO BE
PERMITTED BY RESPECTIVE SANCTIONING AUTHORITIES.
OR
Furnishing guarantee from a guarantor who is good for the amount of advance and
acceptable to the Bank – TO BE PERMITTED BY NEXT HIGHER AUTHORITIES.
Page 107 of 212

Circle Head-CO- CAC and above authorities can very selectively permit upto their delegated
powers the waiver of Guarantee and/or collateral security in case of loan for purchase of flat
under constructions.
8.11 OTHER OPERATIONAL GUIDELINES:
All other terms and conditions applicable to General Housing Finance are applicable for housing
loans permitted to the Non Resident Indians (NRIs Housing Loans).
Relaxations under NRI - HL Scheme:
Circle Head-CO-CAC and above authorities can very selectively permit the following relaxations
up to their delegated powers:
a) Waive Guarantee and/or Collateral security for Housing loan to NRIs given for construction
of FLATS.
b) Repayment period up to 30 years or till the borrower attains the age of 70 years.
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c) Minimum employment abroad of 2 years to 1 year with valid job contract/work permits.
d) NRI status from 3 years to 2 years.
e) NRI/PIO/OCI:
3
a) In case of salaried applicants/ co-applicant/s (whose income are considered for
:5
eligibility),they should have a regular job abroad in a reputed Indian / foreign company,
organization or government department holding a valid job contract / work permit for the
04
minimum past -2- years.
b) In case of others, they should be employed / self-employed or having a business unit and
3
staying abroad at least for -2- years.

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Page 108 of 212

9. CANARA VEHICLE LOAN – TWO WHEELERS (PRODUCT CODE 603)
9.1 PURPOSE: For purchase of Brand New Two Wheelers

9.2 ELIGIBILITY SALARIED INDIVIDUALS: Central / State Government, PSUs / Joint Stock
Companies, Corporates/Public Limited Companies/ Private Institutions, Lecturers/Asst.
Professors / Professors of Colleges/ Research Institutes and Universities, IT / BT Companies
and should have a minimum Gross Salary of Rs.1.75 Lakh p.a. and net take home salary of 35%
of gross salary at the time of applying for loan (after meeting the instalment for the proposed
loan under this scheme).
Based on merits of individual cases, the respective sanctioning authority may permit relaxation
in the net take home salary to 25% of gross salary after meeting the proposed instalment for
the loan. (To be done on a highly selective basis as reduction of take home pay has an impact
on repayment capacity).
9.3 OTHER THAN SALARIED INDIVIDUALS: This category should have a minimum annual
income of Rs 2.00 lac and above to be evidenced by ITAO/ITR (Income Tax Assessment
Order/Income Tax Return)
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However, in deserving cases, the sanctioning authority may waive production of ITAO/ITR if
satisfied about the credit-worthiness/repayment capacity of the borrower. (The sanctioning
authority should ensure the repaying capacity of the borrower duly taking into account the
3
other commitments if any).
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9.4 QUANTUM:
In case of two wheelers - Sanction of loan based on Minimum Value of the vehicle:
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Category of Branch Min. Invoice value of the vehicle (considered for
3
sanction)
Metro/Urban Branches Rs.1.00 lac and above
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Semi Urban/Rural Branches No Minimum Limit

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Salaried Individual:
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Existing customer New Customers

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Loan may be granted up to 85% of the total Loan may be granted for new customers up
value inclusive of invoice value, Life Tax, to 80% of the total value inclusive of invoice
26
registration charges, insurance premium and value, Life Tax, registration charges,
other accessories insurance premium and other accessories
OR OR
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To the extent of 50% of their annual net To the extent of 50% of their annual net
77
income in the immediate previous year, income in the immediate previous year,
whichever is less whichever is less
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Other than Salaried Individual:

Existing customer New Customers
Loan may be granted up to 75% of the total Loan may be granted for new customers up
value inclusive of invoice value, Life Tax, to 65% of the total value inclusive of invoice
registration charges, insurance premium and value, Life Tax, registration charges,
other accessories insurance premium and other accessories.
OR OR
To the extent of 50% of their annual net To the extent of 50% of their annual net
income in the immediate previous year, income in the immediate previous year,
whichever is less whichever is less
Page 109 of 212

9.5 MARGIN:
Salaried Other than Salaried Individual
(i) 15% (Existing Customers) (i) 25% (Existing Customers)
(ii) 20% (New Customers) (ii) 35% (New Customers)
For Low Risk Grade (CS:1) & Normal Risk Grade (CS:2) customers 1.00% less than the existing
Rate of Interest linked to RLLR under Canara Vehicle Two Wheeler Loan Scheme for salaried
class.
9.7 DELEGATION OF POWERS:
1. For Low & Normal Risk Grade Borrowers: Respective sanctioning authority is delegated to
sanction, irrespective of loan amount up to their delegated powers.
2.For Moderate Risk Grade Borrowers: Respective Sanctioning Authority is delegated to

sanction for loan amount up to Rs.1.50 Lakh to Salaried Borrowers. Above Rs.1.50 Lakh Next
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Higher Authority at RO/CO.
3.Embargo on NPA Level of Branch: Loan can be sanctioned by the respective sanctioning
authority without referring to embargo on NPA levels of the Branch under TWO wheeler loan
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Scheme.[as per HO Cir No.962/2020 24.12.2020]
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9.8 REPAYMENT: A repayment period not exceeding 60 months from the date of grant of the
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loan may be permitted. Repayment of the loan is to commence from the month following the
disbursement. Repayment shall be by way of EMI based on the EMI chart.
3
- Branches to effectively monitor these loan accounts for ensuring prompt repayment. As in
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the case of all LHV accounts, branches should initiate recovery action if 3-4 consecutive
monthly instalments are not paid and / or substantial portion of interest debited is not
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serviced.
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- However, before seizure of vehicle, proper place to safely park them should be ensured.
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Also, once a vehicle is seized, firm steps should be taken for disposal of the same. Release of
the seized vehicle again to the borrower may be permitted only if at least 50% of overdues are
26
paid. Any deviation from this should be permitted only by the Circle Office.
- Any laxity in initiating timely recovery measures including seizure and disposal of the seized
8
vehicle shall be viewed from the accountability angle.

77
9.9 SECURITY:
99
(i) Hypothecation of the vehicle purchased.

(ii) Suitable guarantor good for the amount of the loan may be insisted upon. However,
sanctioning authority at his discretion may consider waiver of the same on a cases
to case basis on merits.
CRG: Canara Retail Grade (CRG) Card
0.25% of Loan Amount (Minimum Rs 250/- & Maximum Rs 1000/-)
Page 110 of 212

(i) Loan Amount up to Rs 10.00 Lakh Rs 200/- per borrower per inspection with a
Maximum of Rs 600/- per year.
(ii) Loan Amount above Rs 10.00 LakhRs 300/- per borrower per inspection or actual
9.12 MODE OF LOAN DISBURSEMENT:
Whenever vehicles are financed by branches, the loan proceeds and margin money is to be
directly delivered to the dealer only by way of Demand Draft (DD)/NEFT/RTGS. DD along with
a covering letter should be handed over in person by Branch in charge / Credit Officer/ other
officer against proper acknowledgment.
Under no circumstances, the DD shall be sent through the borrower.
Branch to insist for the copy of the Sales Certificate issued by the dealer and ensure that our
lien is mentioned therein.
Insist Proforma invoice for NEFT/RTGS mandate form duly signed by Dealer’s Authorized
signatory as per the Annexure-I of HO Cir. No.86/2015 dated 25.02.2015
PM
Sanctioning authority is empowered to disburse of vehicle loan proceeds financed under Retail
Lending by way of NEFT/RTGS to the dealers in exceptional cases based on genuineness of the
dealer and their invoice on case to case basis.
After sending the NEFT/ /RTGS an e-mail has to be sent to the dealer’s e-mail id. NEFT/RTGS
3
payment report (along with UTR No.) and the e-mail sent copy to be kept with the loan papers.
9.13 OTHER INFORMATION:
:5
It is mandatory for Branches/Offices, verification of vehicle details through mParivahan portal
04
wherever Vehicle is financed under two or four wheeler retail segment. A copy of the report
is to be preserved with loan papers and made available for verification.
3
9.14 SANCTIONING POWERS:

02
Branches / offices may permit loans under this scheme within their delegated powers as per
‘Delegation of Powers’ for credit sanction.
(Rs. In Lakh)
/2
Sanctioning Authority/ CACs Sanctioning Powers

0
Branches headed by Scale I 5

/1
Branches headed by Scale II)/Credit Manager in

10
VLBs/ELBs*
26
1. Branches headed by Scale III

20
2. Senior Manager in ELB/VLB*
CM in VLB/ELB/ DM-RO-CAC# 40
8
AGM in ELB 100

77
AGM-RO-CAC 100
DGM Heading Branch /DGM-RO-CAC 200
99
DGM-CO-CAC 400
CGM/GM-CO-CAC 500
CGM/GM-HO-CAC Above Circle Head CAC up to Rs.1000
*Please refer DOP: IC/104/2023 dt. 14.02.2023 Point No.3.22.4 with regard to second line
Delegation of powers (in case of Canara Vehicle-Two Wheelers).
Note: In respect of branches having NPA level of 5% and above, Regional Head may selectively
permit such branches to exercise powers for sanctioning loans under the above scheme.
*****
Page 111 of 212

9a. CANARA VEHICLE LOAN – FOUR WHEELERS (PRODUCT CODE 603)
In the context of higher yield and need for improving profitability, Banks are popularizing
various retail credit facilities suiting the requirements of clientele. There is stiff competition
among Banks to improve their retail credit base. To retain and expand such type of Retail
clients, Bank has introduced Canara Vehicle Loan scheme for purchase of Four Wheelers
9a.1. PURPOSE:
To purchase four-wheeler including Jeep, Vans-Both brand New and Pre-Owned Vehicles.
9a.2. ELIGIBILITY:
All the individual borrowers / professionals/ reputed firms / Companies meeting the following
criteria.
In order to determine the eligibility criteria for salaried & other than salaried individuals,
either singly or jointly with Close Relatives as co-applicants.
PM
While considering the close relative as co-applicant, sanctioning authority has to ensure
adequate income and NTH of such close relative and the tenure of the loan may be fixed
accordingly.
3
Proper documentary evidence in respect of all the joint applicants may be in place.
:5
Further, it shall be ensured that there is a proper recovery / pooling of income mechanism in
04
place to ensure timely repayment of EMIs. Suitable risk mitigants may be used like Post-dated
cheques of all the joint borrowers to ensure the same.
3
Shifting of salary account to our bank / salary tie up in respect of all the applicants may be
02
explored.
MIS in respect of all such loans permitted shall be maintained and submitted (as per format)
/2
to the next higher authority for information on a monthly basis as per Annexure-I of this
0
circular.
/1
The sanctioning authority can also take into account any other income declared by the
borrower like rental income / income from investment / income of the either individually or
26
jointly with family (any member good for the loan) which are regular and reasonable in nature,
subject to production of documentary evidence.
8
However, HUF is not eligible for Canara Vehicle Loan.

77
For all other guidelines with reference to processing of four wheeler loans at End to End
Branches and Standalone branches refer HO Cir.257/2021 dt.19.04.2021 & HO Cir.IC/514/2022
99
dt.19.08.2022.
A. Salaried Class:
Salaried individuals (with or without salary tie-up) should have a minimum gross salary of
Rs.3.00 lakh p.a. Net take home (NTH) salary after taking into consideration the instalment of
proposed loan should not be less than 25% of the gross salary/ income or Rs.12,000 pm
whichever is higher.
CGM/GM-CO-CAC and above authorities are empowered to permit relaxation in NTH up to 20%
or Rs.12,000/- whichever is higher on merits of individual cases VERY SELECTIVELY.
Page 112 of 212

In respect of loans to salaried class, sanctioning authority has to ensure that,
 Wherever salary account is maintained with our bank, loan drawdown option shall be
linked to the salary credit savings bank account.
 Wherever salary account is not maintained with our bank, ECS mandate to be obtained
linking to the salary account of the customer maintained at other bank.
B. Other than Salaried individuals:
This category should have a minimum gross annual income (Cash accruals) of Rs.3.00 lakh p.a.
as per latest ITR/ITAO subject to 3 years Gross Average Annual Income of not less than Rs.2.50
lakh.
The above is subject to producing of documentary evidence (3 years ITR/ITAO) regarding the
annual income (If abnormal increase is observed, during concluded financial year, as per
ITR/ITAO, sanctioning authority should ensure the authenticity and sustainability of the
income) to be permitted by the respective sanctioning authority up to their delegated powers
subject to net take home after taking into consideration the instalment of proposed loan
PM
should be 25% with a minimum of Rs.12,000/- p.m.
CGM/GM-CO-CAC and above authorities can permit relaxations in NTH up to 20% or Rs.12,000/-
whichever is higher on merits of individual cases very selectively.
3
For Pensioners- Net Take Home should be 50%.
:5
Where borrower is having non-agricultural income of regular nature (either through salary,
business or profession), the same may also be reckoned for determining the repayment
04
capacity. However, adding the non-agricultural income shall be subject to the income being
declared in ITAR or subject to production of documentary evidence acceptable to the Bank. In
case, any other family member is also having Agricultural income and intends to join as
3
Co- Borrower, the same can be permitted for arriving at Annual Income, Repayment Capacity.
02
C. Firms / Companies:
/2
While considering loans under this scheme in respect of firms / companies, the sanctioning
authority should be satisfied about their net worth, repaying capacity (i.e., ensure DSCR as
0
per extant guidelines) etc.,

/1
In order to determine the eligibility criteria for a & b above, the sanctioning authority can
26
also take into account any other income declared by the borrower like rental income / income
from investment / income of the spouse, subject to production of documentary evidence.
However, in respect of schematic loans to High Risk rated business concerns like proprietary
8
concerns, partnership firms, Corporates etc., enjoying credit facilities, the other facilities/
77
limits sanctioned to the borrower, if any (including business loans) to be aggregated to decide
delegating authority. DOP is as detailed in charts of the DOP circular No. IC/104/2023
99
dt.14.02.2023.
Physical visit to office/work place/shop will be ensured and feedback from few firms in the
neighbourhood obtained during pre-sanction survey to establish stability of activity.
Further, wherever Trust is involved duly verifying the borrowing powers the same shall be
granted by taking suitable credit decision up to their delegated powers.
9a. 3 Additional guidelines:
In order to determine the eligibility criteria for salaried & other than salaried individuals,
either singly or jointly with Close Relatives as co-applicants.
Page 113 of 212

While considering the close relative as co-applicant, sanctioning authority has to ensure
adequate income and NTH of such close relative and the tenure of the loan may be
fixed accordingly.
Proper documentary evidence in respect of all the joint applicants may be in place.
Further, it shall be ensured that there is a proper recovery / pooling of income mechanism in
place to ensure timely repayment of EMIs. Suitable risk mitigants may be used like Post-dated
cheques of all the joint borrowers to ensure the same.
Shifting of salary account to our bank / salary tie up in respect of all the applicants may be
explored.
MIS in respect of all such loans permitted shall be maintained and submitted (as per format)
to the next higher authority for information on a monthly basis as per Annexure-I in HO Cir
75/2021 dated 10.02.2021
9a.4 Margin for New Vehicles: (for both Existing & New Customers) In respect of new vehicles
only, following margin on total value - inclusive of invoice value, life tax, registration charges,
insurance premium and other accessories (up-to Rs.25000/-):
PM
Sl. 4- Wheeler Loan Margin
No amount for new vehicle Central/State Government/ All others
Autonomous bodies /PSUs employees customers
3
1 Upto Rs.10.00 Lakh 10 10 % 10 %
:5
% 10 %
2 > Rs.10.00 Lakh upto 10 % 15 %
04
Rs.25.00 Lakh
3 Above Rs.25.00 Lakh 20 % 20 %
3
9a.5 Quantum of loan: Pre-owned (4 wheeler):

02
Loan under this scheme can be considered for purchase of second hand / used vehicles also
which are not older than THREE years. In such cases, the minimum margin and quantum of
/2
finance to be granted for purchase of the second hand vehicles will be the least of the
following:
0
/1
 60% of the value of vehicle as appraised / assessed by an automobile engineer.

 60% of the price agreed to between the seller and the buyer.
26
 60% of the original purchase price of the vehicle.

 Max Rs.50.00 lakh (after maintaining a minimum margin of 50%).
Sl. 4- Wheeler Loan amount Minimum Sanctioning Authority
8
No for preowned vehicle Margin

77
1 Upto Rs.15.00 Lakh 40% Respective sanctioning authority

2 >Rs.15.00 Lakh upto 50% Regional Head-CAC and above higher
99
Rs.30.00 Lakh. authorities

3 Above Rs.30.00 Lakh upto 50% Circle Head-CAC and above higher authorities
Rs.50.00 Lakh
Note: It should be ensured that the valuation report furnished by the automobile engineer
should clearly specify the probable future life of the second hand vehicle to be purchased and
the repayment period of the loan is to be restricted up to the future life specified or as per
the scheme, whichever is less.
Vehicles which are not older than 1 month from the date of their purchase / first registration
(registered within one month) can be treated as new vehicle and the same can be financed
on the terms and conditions as applicable for purchase of brand new vehicles. However, in all
such cases, our borrower should be the first transferee.
Page 114 of 212

9a.6 Repayment:
a. In case of new vehicle, a repayment period not exceeding 84 months from the date of
grant of the loan may be permitted.
b. In the case of second hand vehicles, the repayment should be restricted up to 60 months
OR the future life specified, whichever is less.
9a.7 RELAXATIONS:
FINANCING SECOND & SUBSEQUENT VEHICLE DURING THE PENDANCY OF THE EXISTING
LOAN TO INDIVIDUALS:
Branches linked to RAHs:
Sanctioning Second and subsequent 4-Wheeler vehicle Loan (excluding 2-wheeler) to the same
borrower during the currency of the existing 4-wheeler vehicle loan can be considered by
Senior Manager (Scale-III) at RAHs & above authorities (RAH Head & above) up to their
delegated powers of Canara Vehicle Loans subject to fully satisfied about the credit
worthiness, repayment capacity of the borrower and provided there are no overdues,
PM
satisfactory repayment track record in the existing Canara Vehicle Loan accounts.
Branches not linked to RAHs (wherever applicable):
3
Only second 4-wheeler loans can be considered by the respective sanctioning authority within
:5
the maximum delegated powers as specified under Canara Vehicle Loan scheme. To sanction
third and subsequent 4-Wheeler vehicle loan (excluding 2- wheeler) to individuals under
04
Canara Vehicle Loans Scheme, RO-Head-CACs and above authorities upto their delegated
powers for Canara Vehicle Loans are empowered even during the currency of earlier loans,
provided there are no overdues in the existing Canara Vehicle Loan accounts.
3
02
FINANCING SECOND & SUBSEQUENT VEHICLE DURING THE PENDANCY OF THE EXISTING
LOAN TO CORPORATES:
/2
For all Branches (Linked or non-linked to RAHs): To sanction Second and subsequent 4-
0
Wheeler vehicle Loan to Corporates (without any upper ceiling on the number of vehicles)
under Line of Credit, RO-Head-CACs & above authorities upto their delegated powers for
/1
Canara Vehicle Loans are empowered subject to fully satisfied about the credit worthiness,
26
repayment capacity of the borrower and provided there are no overdues, satisfactory
repayment track record in the existing Canara Vehicle Loan accounts.
8
9a.8 Applications are to be disposed off meticulously by adhering to time norms:

77
Time Norms
Sanction at Branch/ RAH/ AHLCs Sanctions at Circle Sanctions at HO
99
7 days 15 days 2 to 3 weeks
9a.9 Guidelines on Generation of Credit Information reports:
Particulars Report from one CIC Reports from two CICs

Limit up to Limit above
Car loans 5 Lakh 5 Lakh
9a.10 Delegation of Powers: CANARA VEHICLE LOANS (First Loan) (including Agriculturists
& Canara Green Wheels):
Page 115 of 212

(Rs. in lakh)
Senior Manager in RAH 30
DM/AGM in RAH/ AGM-RO-CAC 100
DGM-RO-CAC 200
DGM-CO-CAC 400
CGM/GM-CO-CAC 500
CGM/GM-HO-CAC Above CO Head CAC & up to Rs.1000
For Canara Vehicle & Canara Green Wheels loans (including agriculturists) branches have no
sanctioning powers.
Note:
- HO Cir: IC/514/2022- Strengthening of Recovery Mechanism in respect of Retail Loans Role
of RAHs/ Branches & Regional Offices for monitoring and recovery of Retail Loans –
Modification in functional guidelines.
9a.11 Mode of disbursement (4 Wheeler):
PM
Whenever vehicles are financed by branches, the loan proceeds and margin money is to be
directly delivered to the dealer only by way of NEFT/RTGS/Demand Draft (DD). DD along with
3
:5
Under no circumstances, the DD shall be sent through the borrower.
04
Branch to insist for the copy of the Sales Certificate issued by the dealer and ensure that our
lien is mentioned there in.
3
Insist Proforma invoice for NEFT/RTGS mandate form duly signed by Dealer’s Authorized
02
signatory as per the Annexure-I of HO Cir. No.86/2015 dated 25.02.2015

Sanctioning authority is empowered to disburse of vehicle loan proceeds financed under Retail
/2
Lending by way of NEFT/RTGS to the dealers in exceptional cases based on genuineness of the
0
dealer and their invoice on case to case basis.

/1
Before remittance the branch has to ensure that the dealer is an authorized dealer and the
vehicle is ready for delivery.
26
After sending the RTGS/NEFT an e-mail has to be sent to the dealer’s e-mail id. RTGS/ NEFT
payment report (along with UTR No.) and the e-mail sent copy to be kept with the loan papers.
8
The dealer should be instructed to obtain an acknowledgement from the borrower for having
77
received the vehicle in good condition and send us the same along with his stamped receipt
for having received the full payment towards the vehicle.
99
The dealer should be instructed to get bank’s HP endorsement while registering the vehicle
and should send the Registration Certificate (RC)/Smart Card to us.
9a.12 OPERATIONAL GUIDELINES – PAYMENT OF SERVICE CHARGE FOR SOURCING CANARA
VEHICLE (FOUR WHEELERS) LOAN APPLICATIONS
The payment of service charges to Car Dealers and Sales Executives, i.e., 1.30% of loan amount
with a max of Rs. 50,000/- and Rs. 1,500/- respectively, can be made flexible between both
within the overall permissible cap.
The above payment to be permitted by RO Head.
Page 116 of 212

ROLE OF RETAIL ASSET HUBS / BRANCHES:
1. Retail Asset Hubs / Branches shall refer to list of authorized dealers (four wheelers) in their
area of operation and take up with Circle Offices for enlisting automobile dealers for the above
incentive scheme, which will enable them to improve their asset portfolio under Vehicle loan
segment.
2. After receiving information about enlisting of dealers under the scheme, branches / RAHs
should keep in constant touch with automobile dealers and their sales executives for getting
leads.
3. Branches / Retail Asset Hubs should maintain close and regular liaison with the authorized
dealers and their sales executives to ensure regular flow of proposals.
4. Branches / RAHs should maintain inward register to record dealer- wise details of all the
leads received from the automobile dealers and update the list whenever loans are sanctioned
or rejected.
5. After getting the leads, Branches / RAHs should contact the prospective borrowers over
phone and furnish them with an exhaustive list of documents needed for processing the
proposal. Care should be taken to call for all the required information / documents in one go.
6. After receiving the information / documents from the prospective borrowers, proposal shall
PM
be processed in the quickest possible time, by following all extant guidelines
7.Mere fact that the proposal is forwarded by Dealer / DSE should not be a reason for diluting
of running KYC checks / eligibility criteria on the prospective borrower / guarantor.
8. Immediately after all the required documents are submitted, branches / RAHs shall sanction
3
and disburse the loan without any delay.
:5
9. Immediately after disbursement, retain one copy of the claim form as per Appendix-89 along
with loan papers (for inspection) and forward the other copy to Circle Office on a monthly
04
basis by filling in the portion meant for use by “Branch / RAH”. The fact of forwarding the
claim form shall be updated in the inward register.
10. Branch / RAH to follow up the matter with Circle Office to ensure that the amount payable
3
to Dealer / Sales Executive of the Dealer is released early

02
9a.13 GENERAL CONDITIONS:

/2
1. This scheme is applicable only for brand new four-wheelers and not for used cars
0
and two wheelers

2. It shall be ensured that the service charges are paid only for business which is
/1
sourced by the Dealer / Dealer’s Sales Executives and not for walk-in proposals.
26
3. Claim of automobile dealers should be processed and sent to Circle Office on a monthly
basis to enable them to release the payment without any delay.
4. No service charges are payable either to the Automobile Dealer or their Sales Executives if
8
employees of our Bank avail Car Loan under Employees’ Vehicle Loan Scheme,
77
5. No service charges are payable either to the Automobile Dealer or their Sales Executives in
respect of loan proposal from a borrower who is covered under a pre-sanctioned special
99
package, involving some concessions.
9a.14 Guidelines of TDS:
1. As per Section 194H, “Commission or brokerage” includes any payment received or

receivable, directly or indirectly by a person acting on behalf of another person for services
rendered (not being professional services) or for any services in the course of buying or selling
of goods or in relation to any transaction relating to any asset, valuable articles or thing, not
being securities.
2. Considering the above provisions of I T Act, service charges payable to Automobile dealers
and their sales executives for sourcing car loan applications comes under the purview of
meaning “commission or brokerage” as per Section
Page 117 of 212

194H of Income Tax Act. Hence TDS needs to be effected u/s 194H of IT Act @ 10%. However,
if the aggregate of the amounts of such income credited or paid or likely to be credited or
paid during the financial year to the account of, or to, the payee, does not exceed
Rs. 5000/-, no TDS is required to be deducted.
3. Branches to refer the communications issued on tax matters from time to time by HO for
necessary compliance.
9.b. INTRODUCTION OF “CANARA GREEN WHEELS” - NEW SCHEME TO FINANCE ELECTRIC

FOUR WHEELER VEHICLES.-Product Code 603
To augment Electric Vehicle (Four-wheeler) consumption due to its positive environmental

impact and reduced cost of operation, we are happy to introduce “Canara Green Wheels” a
new scheme for Financing Electric Four Wheeler Vehicle (4-Wheeler) including agriculturists.
The Electric Vehicles are not only cost-effective, they also have tax benefit under section
80EEB ending on the 31st day of March, 2023 up to Rs.1.50 lakh.
PARAMETERS FEATURES OF THE “CANARA GREEN WHEELS” – ELECTRIC VEHICLE
PM
Purpose Purchase of New Electrical Four Wheeler for personal /non-commercial
purpose.
Classification Non-Priority sector
Income criteria Minimum income of Rs.3.00 Lakh p.a. as per the latest income of Salaried/
3
Non-salaried class; Agriculturist: Net Annual Income of applicant and/or
:5
co-applicant together should be a minimum of Rs.4.00 Lakh.
04
Eligibility All Individual borrowers/professionals/reputed firms/companies &
agriculturists.
Margin Up to Rs.25.00 lakh - 15%
3
Above Rs.25.00 lakh - 25%

02
Security Hypothecation of the Vehicle proposed to be purchased.

Comprehensive insurance for the full value of the vehicle with Bank
clause.
/2
Rate of Interest As applicable from time to time

0
Guarantor Suitable guarantor good for the amount may be insisted upon.
/1
However, sanctioning authority at his discretion may consider waiver of

the same on case to case basis based on merits.
26
Release Loan amount shall be released along with margin directly to the dealer’s
by way of Demand Draft/RTGS/NEFT
8
Repayment Maximum 84 EMIs

77
Product Code & SL PRODUC PRODUCT SCHEME CODES

Scheme Code NO T CODE DESCRIPTION
99
1 603 Canara Vehicle 111000-Canara Green Wheels

(4-Wheeler)-General
2 636 Canara Vehicle 111100-Canara Green Wheels
to Agriculturists (4-Wheeler)-Agriculturists
Note: All other guidelines pertaining to Canara Vehicle Four wheeler (Product Code – 603 &
636) Loan Scheme for Individuals, Firms/Companies and Agriculturist shall continue.
The Circles/ROs/RAHs/Branches/Offices are advised to utilize the following new scheme
codes while opening the loan accounts:
Page 118 of 212

Scheme Code Scheme description
111000 Canara Green Wheels (4-Wheeler)
111100 Canara Green Wheels(4 Wheeler)-Agriculturist
Further, while opening loan under Canara Green Wheels scheme, Branches/Offices has to
choose the defined product code-scheme code combination in LAPS for correct
classification/MIS reporting of loans under above scheme.
While sanctioning the loans the sanctioning authority to ensure the components mentioned in
PROFORMA INVOICE / QUOTATION shall be cross-verified from State Policy on Electric Vehicles
Four Wheeler regarding Road Tax Exemption.
*****
PM
3
:5
04
3
02
0 /2
/1
26
8
77
99
Page 119 of 212

10. CANARA VEHICLE LOAN TO AGRICULTURIST (PRODUCT CODE 636)
10.1 PURPOSE:
Purchase of Four wheelers (LMVs) of all types i.e., both Brand New & Pre-owned by
Agriculturists whose major Annual Income is from Agriculture.
10.2 ELIGIBILITY:
All agriculturists owning and cultivating agricultural lands of more than 5 acres of irrigated
lands/10 acres of dry lands in their name/s, subject to the following:
1. They should be our existing customers and should have satisfactory dealings with us for the
last two years. In case of new Branches that have not completed two years from the date of
their opening and in case of new customers. Regional-Head-CAC can permit the loans
selectively.
2. Their past dealings should be satisfactory Vehicle Loan under this scheme is permitted to
be considered for the following category of individual borrowers:
- Agriculturists
PM
- Dairy and Allied activity Farmers
- Planters
- Horticulturists
For considering Canara Vehicle Loans to agriculturists engaged in Dairy Farming, Poultry
3
Farming, Plantation Crops and Horticultural Produce, the minimum land holding levels need
:5
not be applied. These categories of borrowers can be financed provided their minimum gross
annual income is Rs.4.00 lakh.
04
10.3 INCOME PROOF & NET TAKE HOME (NTH):
3
1. In case of loans up to Rs.10 Lakh, though it is desirable to obtain latest ITR for ascertaining
the gross annual income where agricultural income is also declared, in case of non-availability
02
of ITR, Income Certificate issued by the Tahsildar/ Mandal Revenue Officer/District Revenue
Authorities or any competent authority (Permitted by the State Govt. to issue such
/2
certificates) may be accepted as proof of income for reckoning the eligibility/NTH.

In such cases, branches may also cross check/verify the originals of land records with regard
0
to acreage, yield, cost of cultivation, net return etc. to ensure the same. Necessary due
/1
diligence is to be exercised by the branches in this regard.

26
2.In case of branches having services of AEOs and AEO promotee managers, the income
certificate may be obtained from them as is done in case of Agricultural Term Loans
8
3. However, in case of loans above Rs.10 Lakh, ITR is to be compulsorily insisted upon, where
agricultural income is also declared. If the same is not available, prior clearance from RO-
77
Head–CAC (for sanctions below RO-Head CAC) is to be obtained for sanction of loans by
respective sanctioning authority. In case of RO-Head-CAC and above sanctions,
99
respective sanctioning authority can permit the same.
4. Net Take Home (NTH) should be 40% of gross annual income at the time of applying for loan
(after meeting the installment for the proposed loan under this scheme) with a minimum of
Rs.1.50 lakh/- p.a. CGM/GM-CO-CAC & above authorities are empowered to permit
relaxation in NTH from 40% to 25% with a minimum of Rs.1,00,000/-p.a. selectively as per
their respective delegated powers.
5. Repayment capacity is to be assessed by appraising the loan as an agricultural term loan

i.e., commitments under Agricultural Term Loans, Working Capital interest (KCC /KOD)
etc., shall be taken into consideration for arriving at Net Income, but the loan should
not be classified as agricultural loan.
Page 120 of 212

10.4 MARGIN /QUANTUM OF LOAN:
10.4.1. New Vehicle:
Margin on the Road price inclusive of invoice value, life tax, registration charges, insurance
premium and other accessories.
Loan Amount Margin for existing Margin For New
customer Customers
Up to Rs.10.00 lakh. 10% 20%
Above Rs.10.00 lakh and up 15% 25%

to Rs. 25.00 lakh
Above Rs. 25.00 lakh 20% 30%
Accessories can be financed limited up to Rs.25,000/-.
PM
10.4.2. Quantum of loan: Pre-owned (4 wheeler):
Loan under this scheme can be considered for purchase of second hand / used vehicles also,
which are not older than THREE years. In such cases, the minimum margin and quantum of
3
finance to be granted for purchase of the second hand vehicles will be the least of the
:5
following:
04
 60% of the value of vehicle as appraised / assessed by an automobile engineer.
 60% of the price agreed to between the seller and the buyer.
 60% of the original purchase price of the vehicle.
3
 Max Rs.50.00 lakh (after maintaining a minimum margin of 50%).

02
Sl. 4- Wheeler Loan amount Minimum Sanctioning Authority

No for preowned vehicle Margin
/2
1 Up to Rs.15.00 Lakh 40% Respective sanctioning authority

0
2 >Rs.15.00 Lakh up to 50% Regional Head-CAC and above higher

/1
Rs.30.00 Lakh authorities

26
3 Above Rs.30.00 Lakh up to 50% Circle Head-CAC and above higher authorities
Rs.50.00 Lakh
8
Note: It should be ensured that the valuation report furnished by the automobile engineer
should clearly specify the probable future life of the second hand vehicle to be purchased and
77
the repayment period of the loan is to be restricted upto the future life specified or as per the
scheme, whichever is less.
99
Vehicles, which are not older than 1 month from the date of their purchase / first registration
(registered within one month) can be treated as new vehicle and the same can be financed on
the terms and conditions as applicable for purchase of brand new vehicles. However, in all
such cases, our borrower should be the first transferee.
10.5 SECURITY: Hypothecation of the vehicle to be purchased.
Suitable guarantor good for the amount may be insisted upon. However, sanctioning authority
at his discretion may consider waiver of the same on case to case basis on merits.
“Option to verify the details captured under MIS Report: 301018”
Page 121 of 212

Please refer Point No. 9b.2.10.
10.7 RATE OF INTEREST: As applicable to Canara Vehicle Loans.

10.8 CRG: As per CRG guidelines issued vide HO Cir.825/2021 & 47/2022.
10.9 REPAYMENT:
1. In case of new vehicle, a repayment period not exceeding 84 months from the date of grant
of the loan may be permitted.
2. In case of second hand vehicles, the repayment should be restricted to future life of vehicle
as specified by a qualified automobile Engineer or 60 months, whichever is less.
3. The periodicity of repayment i.e., monthly /quarterly/ half yearly / yearly should be fixed
depending upon the activity carried on by the borrower / income stream of the borrower /
cropping pattern. Interest will be compounded monthly but demanded at
monthly/quarterly/half yearly / yearly depending on repayment schedule. However, in respect
PM
of dairy and allied activity farmers demand will be raised monthly as in the case of Canara
Vehicle loans. Suitable Equated Periodical Installments to be fixed based on income generation
of the borrowers.
4.Recovery of installments to be ensured by way of PDCs and/ or ECS mandate registration
3
etc. and the income recognition and Asset classification norms are as applicable to general
advances i.e. 90 days past due concept.
:5
04
0.25% of the Loan amount (Minimum of Rs. 1,000 & Maximum of Rs 5,000). All out-of-pocket
expenses like outsourcing charges, periodical inspection charges as per guidelines should be
3
recovered as and when incurred.

02

/2

0
/1
#Out of pocket expenses if any to be collected separately.

26
10.12 DOCUMENTATION CHARGES: Nil.

10.13 DOCUMENTATION: As applicable to Canara Vehicle Loans.
8
10.14 INSPECTION OF THE VEHICLE:

77
1. In case of regular accounts: Inspection has to be conducted, once in a year or at the time
of RC verification / Insurance etc.,
99
2. In case of irregular accounts: visits as per need based to recover the dues.
10.15 MISCELLANEOUS:
1. Whenever vehicles are financed by branches, the loan proceeds and margin money is to be
directly delivered to the dealer only by way of NEFT/RTGS/Demand Draft (DD). DD along with
2. Under no circumstances, the DD shall be sent through the borrower. Branch to insist for the
copy of the Sales Certificate issued by the dealer and ensure that our lien is mentioned therein.
3. Sanctioning authority is empowered to disburse of vehicle loan proceeds financed under
Retail Lending by way of NEFT/RTGS to the dealers in exceptional cases based on genuineness
of the dealer and their invoice on case to case basis. After sending the RTGS/NEFT an e-mail
Page 122 of 212

has to be sent to the dealer’s e-mail id. RTGS/ NEFT payment report (along with UTR No.) and
the e-mail sent copy to be kept with the loan papers.
4.Insist Proforma invoice for NEFT/RTGS mandate form duly signed by Dealer’s Authorized
signatory as per the Annexure-I of HO Cir. No.86/2015 dated 25.02.2015.
General Guidelines: (Common for Two wheeler and four wheeler)
GST number Verification in GST Website:
Verification of GST number in GST Website for all the Vehicle Loans wherever GST number
provided / made available.
“Genuineness of Quotation / Invoice to be ensured by verifying the GST number in GST
Website”
IRAC NORMS AND CLASSIFICATION:
As applicable to Canara Vehicle Loans. For classification of advances as NPA, 90 days concept
PM
will be followed. These loans are to be classified as Non Priority – Secured loans with specific
Scheme Code.
In respect of all other matters which are not specifically covered hereinabove, terms and
conditions as applicable to Canara Vehicle Loans shall apply.
3
:5
Utilization of mParivahan Portal:
04
It is mandatory for Branches/Offices, verification of vehicle details through mParivahan portal
wherever Vehicle is financed under two or four wheeler retail segment. A copy of the report
is to be preserved with loan papers and made available for verification.
3
02
Under Digital India, Government has launched latest initiative which delivers improved service
to citizens through a mobile based application i.e.m-Parivahan application.
/2
Step 1. Download m-Parivahan app from Google playstore

Step 2. Select the language to continue.
0
Step 3: For Registered Users-

/1
Step 4: Click OK and Enter RC Number to get details

Step 5: For registered users, please login with registered mobile no and click continue
26
Step 6: For Unregistered users, please click on Sign up

Step 7: For Unregistered users, accept the terms and conditions and continue. An OTP will
8
be triggered to the mobile number by the Mparivahan app

Step 8: For Unregistered users- Input the OTP and verify
77
Step 9: Enter RC Number to get details and create Virtual RC

Step 10: The Information get displayed on the screen. Now click on Add to dashboard for
99
virtual RC .
Step 11: Please enter last four digits of Chassis number and Engine number. Click verify
Step 12: The information gets displayed. Ensure that our Bank’s name is mentioned under
Financier. Kindly keep a copy in loan papers.
INTRODUCTION OF VAHAN PORTAL IN SAS MODULE FOR DIGITAL SHARING OF VEHICLE LOAN
HYPOTHECATION DETAILS TO PARIVAHAN SEWA PORTAL (MINISTRY OF ROAD TRANSPORT &
HIGHWAYS, GOVERNMENT OF INDIA FOR DELHI AND KERALA STATE.[HO CIR IC/447/2022
Dated 13.07.2022]
Page 123 of 212

Government of NCT, Delhi and Government of Kerala have implemented digital Addition,
Continuation and Termination of Vehicle Loan Hypothecation details sanctioned and
disbursed at various Banks/NBFCs in their states.
The respective State Governments have directed to integrate the Banks/NBFCs software with
Parivahan Sewa portal for digital sharing of Vehicle loan details.
The “Vahan Portal” is developed and presently enabled for Delhi and Kerala States in SAS
Module for online sharing of Vehicle Loan Hypothecation details for the below functionalities:
1. Entry of Hypothecation during new registration.

2. Continuation of Hypothecation during transfer of ownership.
3. Termination of Hypothecation on Loan Closure.
User Manual for the detailed procedure is attached as Annexure-I
The Fast Path for login into the module is as under:
SAS GENERAL VAHAN PORTAL
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Role of Branches:
Branches are advised to make use of the above functionalities for digital sharing of Vehicle
3
Loan hypothecation details and compliance of respective State Government Guidelines.
Role of RAHs:
:5
04
RAHs shall obtain monthly confirmation from their linked Branches on compliance of the above
activities for all Sanctioned Vehicle Loans. Report option under the above module (SAS) is
3
enabled for RAHs to view all the transaction details of their mapped Branches.
02
Roles of COs/ROs:
/2
COs/ROs under Delhi and Kerala States are advised to ensure the utilization of “Vahan Portal”
0
facility in their Branches and compliance of State Government Guidelines

/1
*****
26
8
77
99
Page 124 of 212

11. CANARA BUDGET LOAN (PRODUCT CODE 626)
Canara Budget scheme was introduced in our Bank to extend loans to the employees of reputed
Public Sector and Joint Sector Companies and other Corporates who are our clients and to
Central, State Government officials to meet their personal/domestic requirements. The
detailed guidelines of the scheme are furnished here under:
11.1 PURPOSE:
purpose.
11.2 ELIGIBILITY:
All confirmed employees of:

a. Central/State Government.
b. Autonomous Bodies / PSUs/Joint Stock Companies.
c. Reputed Corporates/Public Limited Companies/Private Institutions.
d. Lecturers/Asst. Professors/Professors of Colleges/ Research Institutes and Universities/
PM
Govt. school Teachers / Reputed Private School teachers.
e. IT/BT Companies.
3
1. The applicant should maintain his/her salary account with the branch along with an
:5
undertaking letter from the employer not to shift the salary account to other bank/s without
obtaining prior clearance from the advancing branch.
04
2. In case of new relationships, minimum 3 months’ salary should have been received regularly
and credited to the Salary account of the party.
3
02
3. No loan should be granted to any individual customer/employee with only Salary recovery
mandate (unless a package is permitted for the group).
/2
4. Minimum Net Take Home Salary (NTH) of borrower should not be less than 25% OR Rs.10,000
0
p.m. whichever is higher after meeting proposed loan installments for all packages and
/1
individual loans.
26
5. CGM/GM-HO-CAC and above authorities are empowered to permit relaxation in NTH to 20%
or Rs.10,000/- whichever is higher, after meeting the proposed loan installment, VERY
SELECTIVELY in individual cases upto their delegated powers, subject to maintenance of salary
8
account or registration of salary mandate.

77
6. Normally, the borrower should not have availed any other clean credit facility from other
banks. However, the applicant may be granted loan under this scheme even if there are other
99
clean loans outstanding, provided, the total of all clean loans outstanding at any point of time
does not exceed the total eligible quantum under this scheme.
7. If any secured limit has been availed, the details thereof to be called for before extending
the loan under the scheme, in order to make a careful assessment about the repayment
capacity of the applicant.
8. Obtention of few PDCs are to be ensured as recovery Mechanism wherever applicable.
11.4 SANCTIONING AUTHORITY & QUANTUM OF LOAN:
Page 125 of 212

11.5 LOAN QUANTUM (Term Loan):
(Rs. In lakh)
Sanctioning Authority / CAC Sanctioning Powers
Branches headed by Scale I 6 months gross salary subject to maximum of Rs 2.00
Lakh
Branches headed by Scale II, 6 months gross salary subject to maximum of Rs 3.00
Credit Managers in VLBs/ ELBs Lakh
1. Branches headed by Scale III 6 months gross salary subject to maximum of Rs 4.00
2. Senior Manager in ELB/VLB Lakh
Chief Manager VLB/ ELB/ 10 Months gross salary subject to maximum Rs 5.00
DM-RO-CAC#/ DM-CO-CAC## Lakh
AGM of ELB 10 Months gross salary subject to maximum Rs 6.00
Lakh
AGM-RO-CAC/ AGM-CO-CAC 10 Months gross salary subject to maximum Rs 7.00
Lakh
DGM Branch/ DGM-RO-CAC 12 Months gross salary subject to maximum Rs 8.00
Lakh
PM
DGM-CO-CAC 15 Months gross salary subject to maximum Rs 9.00
Lakh
CGM/GM-CO-CAC 15 Months gross salary subject to maximum Rs.15.00
lakh.
3
CGM/GM-HO-CAC Above 15 months gross salary and above Rs.15.00
:5
lakh
04
## DM-CO-CAC is not in existence as per extant guidelines.
Note: Gross salary as per Salary Certificate of the previous month. Branches to ensure that
salary components reflected in the salary certificate are of regular nature.
3
02
11.6 OVERDRAFT FACILITY:
Overdraft (clean) facility up to a maximum of Rs. 3.00 Lakh (subject to renewal once in 2
/2
years) may be extended to the Top Executives in the cadre of Secretary, Additional/Joint
0
Secretaries and above in Central Governments/Secretaries to State Government and Top

Executives of big Corporate/public sector undertakings such as Chairman/MD/ED or equivalent
/1
post only.
26
Interest shall be serviced periodically. In case of OD to Top Executives as indicated above,

branch may, at their discretion, waive opening of SB accounts / salary credit / letter of
undertaking from the borrower. However, a salary certificate/slip, showing the deductions,
may be obtained and held on record.
8
77

As advised by HO from time to time.
99
Woman beneficiary - Concession of 0.50% from the applicable Rate of Interest.

11.8 CRG : As per CRG Guidelines issued from time to time.
11.9 NATURE OF LOAN: Non-priority clean loan.
11.10 SECURITY: As per HO Cir:851/2020 dated 05.11.2020

Suitable Co-obligation good for the loan amount and acceptable to the bank should be obtained
irrespective of quantum of loan. However, as far as possible, cross/ mutual co-obligation to
be avoided.
However, CGM/GM-CO-CAC is empowered to waive obtention of Co-obligation subject to compliance
of the following:
Page 126 of 212

a. Central/ State Government/ Autonomous bodies/ PSU Employees
b. Salary accounts shall be available with us.
c. Confirmed employee
d. Gross Salary above Rs.1.00 lakh per month
e. Shall be existing customer with satisfactory track record.
f. Terminal benefits to be routed through our Bank.
11.11 REPAYMENT:
Repayable in 84 equated monthly instalments.
11.12 PROCESSING CHARGE:
0.50% of the Loan amount (Minimum of Rs 1,000 and Maximum of Rs 5,000).

11.13 DOCUMENTATION / INSPECTION CHARGES: Nil.
11.14 Two new special schemes under Canara Budget have been formulated as under:
PM
a. Canara Budget-Prime (with & without salary tie-up):
 To all the confirmed employees of Central Government/State Government/ Personnel

from Defence and Paramilitary Forces / PSUs & Autonomous Bodies of Central & State
3
Govt.
b. Canara Budget-Delight (with salary tie-up only)

:5
04
 To all the confirmed employees of Reputed Corporates/MNCs/ Public & Private Ltd.
Companies/Private Institutions/ Universities, Reputed Schools, Reputed Colleges,
3
Reputed Hospitals & IT BT Companies.

02
Branches have to obtain an undertaking letter as per attached format (Annexure-V) from
borrower & co-obligant, if opting for the Tenor elongation, at the time of opening the
/2
loan account and the same should be effected in the CBS system wherever applicable. In
0
this regard, a suitable clause has been incorporated in Revised Agreement (i.e. Take
Deliver letter to DPN – NF 991) and the same has been enclosed with this Circular. This
/1
revised NF 991 is available in LAPS also.

26
Note:
8
(a) Any variation in the above Schemes shall be placed before CGM-HO-CAC & above
authorities as per their delegation of powers.
77
(b) In case of loans sanctioned based on salary credit under Canara Budget-Prime (i.e.
99
without Salary Tie-up), the Sanctioning Authority has to ensure that the salary for the
last one year shall be credited in the salary account maintained with us.
(c) Circles / Branches are advised to take up with the Wing for any
concessions/relaxations other than permitted under these Special Schemes for any
area specific request, subject to the commitment of minimum business of Rs. 5.00
Crore and above or sourcing of minimum 100 salary accounts from the
Corporate/Department/Institutions.
(d) All other existing Canara Budget scheme guidelines shall be continued.
Page 127 of 212

(e) Embargo:
Branches having NPA levels of more than 5% under Canara Budget portfolio have No
powers to sanction the loans under these schemes. The proposals have to be sanctioned
by RO Head-CAC and above Authorities up to their respective Delegated Powers.
However, Circle Head is authorized to permit select Branches to sanction Canara Budget Loans
despite their NPA being more than 5% by analyzing details of overdues / NPAs, steps initiated
in reduction of overdues / NPAs and justification for the same.
Particulars Canara Budget-Prime Canara Budget-Delight

(with & without salary tie-up) (with salary tie-up only)
Eligibility: All the confirmed employees of: All the confirmed employees of:
Central Government/State Reputed Corporates /MNCs / Public
Government / Personnel from & Private Ltd. Companies/Private
Defence and Paramilitary Forces / Institutions / Universities, Reputed
PSUs & Autonomous Bodies of Central Schools, Reputed Colleges, Reputed
PM
& State Govt. Hospitals & IT BT Companies.
Service Criteria: Minimum 1 year of service & Minimum 1 year of service &
confirmed in the service. confirmed in the service.
3
:5
Purpose: To meet any personal/domestic needs To meet any personal/domestic
of the proposed borrower and not for needs of the proposed borrower and
04
speculative purpose. not for speculative purpose.
3
Quantum & Delegation: Quantum & Delegation: Quantum & Delegation:

02
Sanctioning Quantum CRG Sanctionin Quantum CRG

Authority g
/2
Respective 25 Months’ Up to Authority

Branch gross Moderat Respectiv 25 Months’ Up to
0
Head Salary, e Risk e Branch gross Moderate

/1
subject to (CRG-3) Head Salary, Risk

a subject to (CRG-3)
26
maximum a maximum
of Rs. of Rs.
8
20.00 15.00 Lakh.

Lakh.
77
RO Head- 25 Months’ Up to
RO Head- 25 Months’ Up to CAC gross Moderate
99
CAC gross High Salary, Risk

Salary, Risk subject to (CRG-3)
subject to (CRG-4) a maximum
a of Rs.
maximum 20.00 Lakh.
of Rs. CGM-HO- Above 25 Up to
30.00 CAC & Months’ Moderate
Lakh. above gross Risk
CGM-HO- Above 25 Up to authoriti Salary and (CRG-3)
CAC & Months’ High es above
gross
Salary and
Page 128 of 212

above above Risk Rs. 20.00
authorities Rs. 30.00 (CRG-4) Lakh.
Lakh.
NTH: Minimum Net Take Home Salary (NTH)

Minimum Net Take Home Salary
of borrower should not be less than
(NTH) of borrower should not be less
25% or Rs. 10,000/- p.m. whichever is
than 25% or Rs. 10,000/- p.m.
higher after meeting instalments of all
whichever is higher after meeting
existing loans and proposed loan.
instalments of all existing loans and
proposed loan.
Repayment: Repayable in 84 equated monthly Repayable in 84 equated monthly
instalments. instalments.
PM
Security (Co-obligation): Co-obligation of spouse/legal heir of Co-obligation of spouse/legal heir of
the borrower. the borrower.
3
Wherever spouse/legal heir of the
:5 Wherever spouse/legal heir of the
04
borrower is not available, suitable Co- borrower is not available, suitable
obligation good for the loan amount Co-obligation good for the loan
and acceptable to the bank should be amount and acceptable to the bank
3
obtained irrespective of quantum of should be obtained irrespective of

02
loan. However, as far as possible, quantum of loan. However, as far as

cross/mutual co-obligation to be possible, cross/mutual co-obligation
avoided. to be avoided.
/2
Processing Charges: 100% Waived 100% Waived

0
/1
26
8
77
99
Page 129 of 212

Tenor elongation: Repayment period can be extended up Repayment period can be extended
to a maximum of 12 months, beyond up to a maximum of 12 months,
the original repayment period, to beyond the original repayment
Option to keep EMI fixed meet/absorb the increased amount in period, to meet/absorb the
& to extend the EMI on account of increased Rate of increased amount in EMI on account
repayment period up to interest. of increased Rate of interest.
maximum period of 12
months.
The repayment period should be fixed The repayment period should be
in such a way that the entire liability fixed in such a way that the entire
gets cleared before one month, the liability gets cleared before one
employee attains superannuation. month, the employee attains
Further, entire repayment period superannuation. Further, entire
shall not exceed maximum tenor of 96 repayment period shall not exceed
months. maximum tenor of 96 months.
#The Tenor elongation shall be #The Tenor elongation shall be
PM
permitted by the respective permitted by the respective
sanctioning authority. sanctioning authority.
This is at the option of the borrower. This is at the option of the borrower.
3
:5
The benefit of this facility is to keep The benefit of this facility is to keep
the EMI fixed during the entire loan the EMI fixed during the entire loan
04
period. period.
This functionality shall be facilitated to the borrower as one time measure

3
only and the new loans opened under the subject schemes only. Further,
Branches to ensure that the remaining service of the borrower should
02
have minimum 13 months in addition to the original repayment period,

who are opting the Tenor Elongation.
/2
Rate of Interest: *With Salary Tie-up: *With Salary Tie-up:

0
/1
RISK Grade ROI RISK Grade ROI
CRG-1 RLLR+1.40%
26
CRG-1 RLLR+2.40%
CRG-2 RLLR+1.40%
CRG-2 RLLR+2.40%
CRG-3 RLLR+1.40%
CRG-3 RLLR+2.40%
8
CRG-4 RLLR+6.40%
CRG-4 Not eligible for
77
loan
$Without Salary Tie-up Without Salary Tie-up:
99
RISK Grade ROI Not eligible for loan.
CRG-1 RLLR+2.40%
CRG-2 RLLR+2.40%
CRG-3 RLLR+2.40%
CRG-4 RLLR+6.40%
Page 130 of 212

Second/Subsequent Respective Sanctioning Authority can Respective Sanctioning Authority
Loan: permit Second/subsequent loan can permit Second/subsequent loan
during the currency of the existing during the currency of the existing
loan, subject to the following: loan, subject to the following:
i. Within the overall ceiling fixed as i. Within the overall ceiling fixed
per income of the borrower, as per income of the borrower,
subject to NTH. subject to NTH.
ii. Shall be sanctioned only after ii. Shall be sanctioned only after
completion of two years from the completion of two years from
date of the disbursement of the the date of the disbursement of
First Loan under this scheme. the First Loan under this
iii. The first loan shall be closed scheme.
either from the borrower’s own iii. The first loan shall be closed
source or from the proceeds of either from the borrower’s own
the Second Loan. source or from the proceeds of
the Second Loan.
iv. Wherever, existing loan is closed iv. Wherever, existing loan is
PM
out of the proceeds of the closed out of the proceeds of
second/subsequent loan, the the second/subsequent loan,
same shall be clearly mentioned the same shall be clearly
in the sanction. mentioned in the sanction.
3
v. At any point of time, only one v. At any point of time, only one
loan shall be outstanding under
the scheme.
:5 loan shall be outstanding under
the scheme.
04
vi. The existing loan shall be vi. The existing loan shall be
standard and nil over dues to be standard and nil over dues to be
ensured while sanctioning ensured while sanctioning
3
subsequent loan. subsequent loan.

02
#The Tenor Elongation functionality for automation in CBS/LAPS is already under process.
Hence, branches to ensure that till the subject mechanism is automated in CBS/LAPS, branches
/2
to obtain the required documents and update the same in CBS system in LN089.
0
GENERAL TERMS AND CONDITIONS

/1
1. In case, the account is taken over by other Banks/FIs, concession in ROI / Charges
26
extended-to be recovered, from the date of disbursement to till date of closure. This
shall be part of the sanction conveying letter and accepted by the borrower.
2. Co-obligation of spouse/legal heir (wherever spouse is not available) to be obtained
8
mandatorily.
3. In case of loans sanctioned based on salary credit under Canara Budget-Prime (i.e.
77
without Salary Tie-up), the Sanctioning Authority has to ensure that the salary for the last
one year shall be credited in the salary account maintained with us.
99
4. Branches should ensure the authenticity of salary recovery mandate and undertaking letter
from the employer to not to shift the salary account, from the respective employer.
5. Branches to strictly ensure that the due date of installment shall coincide with the salary
payment date. Further, one-month repayment holiday period shall be extended in the
system by default from the date of the sanction of the loan.
6. Fix repayment/EMI commencement date as per the salary/income generation date after
completion of one-month repayment holiday. Wherever Borrower requests for repayment
date between salary date and default repayment date (i.e., seven days from salary date)
provision will be available in the system.
7. Branches to ensure that total repayment term does not exceed maximum period permitted
and further, it can be extended maximum one year only (in case of tenor elongation).
However, the entire liability is to be cleared at least one month before the employee attains
superannuation. Tenor Elongation facility shall be facilitated to the borrower as one time
Page 131 of 212

measure only. Further, Branches to ensure that the remaining service of the borrower
should have minimum 13 months in addition to the original repayment period, who are
opting the Tenor Elongation.
8. Whenever there is revision in the ROI, the revised EMI should be communicated to salary
disbursing authority under the advice to the borrower, wherever elongation facility is not
availed.
9. Rate of Interest to be linked to RLLR regime and loans should be sanctioned based on the
CRG of the applicants.
10. Circles/ROs shall ensure the reviewing of loans sanctioned under these schemes, wherever
all sanctions to a borrower exceeding total exposure of Rs.5.00 lakh are to be individually
sent for review to the next higher authority along with loan application, sanction processing
note and Sanction Memorandum etc. as per the extant guidelines.
11. The loan quantum including existing clean loan if any, from other Banks/FIs shall not be
more than the permissible quantum as per the scheme at any point of time.
12. If the NPA levels of a branch under Canara Budget is more than 5%, the branches don’t
have powers to sanction loans under these schemes. However, Circle Heads are
authorized to permit select Branches to sanction Canara Budget Loans despite their NPA
being more than 5% by analyzing details of overdues/NPAs, steps initiated in reduction
PM
of overdues/NPAs and justification for the same.
13. The maximum limit is subject to the income & repaying capacity (NTH) of the employees.
14. No processing charges will be charged for all the loans sanctioned under these schemes.
15. ROs & Branches should sanction the loans to the employees, who are working in the
3
subject Organizations/Departments/Companies/Institutions under the subject schemes
:5
only. All the existing Special Packages under Canara Budget have been ceased to exist
immediately. Further, other products under Special Packages M/s HEFA, M/s SML ISUZU
04
Ltd., M/s Govt. of Kerala, M/s Canara HSBC Life Insurance Co. Ltd. and M/s Canfin Homes
Ltd. will be continued until their validity.
3
In respect of packages under the following categories are to be taken up with Head Office by
02
the Circle for sanction:
 Packages on All India Basis are to be sanctioned by CAC of the Board

/2
 Wherever more than one Circle, branches & multiple branches (two different Circles)
0
are involved the package is to be sanctioned by ED CAC and above authorities.

/1
 Packages with higher quantum beyond Circle Powers on selective basis are permitted
by CGM/GM-HO- CAC and above authorities.
26
 Packages with interest concessions and waiver in processing charges above 10% are to
be permitted as per delegation of powers by respective committees.
8
77
1. The lending under the scheme shall be classified under Non-Priority.

2. KYC norms to be complied with and SB account of the borrower should be got opened
99
without fail even in cases where salary account is not available.

3. Relaxations/Concessions/Deviations to the scheme guidelines permitted by Competent
Authorities as per the delegated powers under Special Packages to the employees of various
organizations should not be extended to Individual cases.
4. In respect of existing packages, under Canara Budget scheme, where relaxations are
permitted, loans shall be granted as per package permitted only till the validity of the
package. Extension should not be permitted without obtaining prior permission from HO.
5. Circles/ branches to strive for securing tie up with Corporates who are dealing with our
bank.
6. Selectively, tie up with Corporates dealing with other banks may be considered.
7. All irregular accounts are to be reported in Special Watch Statements and other review
returns as per the prevailing guidelines.
Page 132 of 212

11.16 LOANS TO EMPLOYEES UNDER CANARA BUDGET:
Loans for the limited purpose of purchase of books [other than text books], published by
recognized universities and first rate publishers.
Maximum quantum of loan is Rs.5,000/-
No Security, the account to be classified as clean.
a) Sanctioning authority is the branch in charge.

b) Rate of interest as applicable to Canara Budget scheme.
c) Loan together with interest should be repaid in 24 EMIs.
d) Documentation as applicable to Canara Budget loans.
e) Net take home salary of the employee after deduction of the proposed loan instalment
should be a minimum of 40% of the Gross Salary.
All other guidelines detailed under common guidelines are to be adhered to.
PM
11.17 ADDITIONAL GUIDELINES FOR LOAN ACCOUNTS UNDER CANARA BUDGET SCHEME FOR
CUSTOMERS UNDER CANARA SB PREMIUM PAYROLL PACKAGE (GOLD, DIAMOND & PLATINUM
VARIANT):
3
While extending Canara Budget loans to Canara SB Premium Payroll package (Gold, Diamond
:5
& Platinum Variant) customers, to repay/clear existing personal loan at other Bank/FIs the
following shall be ensured by the sanctioning authority:
04
 In case of loans sanctioned based on salary credit under Canara Budget Prime (without
salary-tie up), Salary for the last 12 months shall be credited in the salary account
3
maintained at our Bank or any other Bank.

02
 Respective Sanctioning authority shall ensure that, existing loan at other Bank/FIs shall be
standard and regular in nature while sanctioning the Canara Budget loan at our bank.
 Respective Sanctioning Authority can permit loan during the currency of the existing loan
/2
with other Bank/FIs, subject to the following:

i. Within the overall ceiling fixed as per income of the borrower.
0
ii. The existing loan with other Bank/FIs shall be closed either from the borrower’s own
/1
source or from the proceeds of the proposed Loan.

iii. Wherever, existing loan with other Bank/FIs is closed out of the proceeds of the
26
proposed loan, the same shall be clearly mentioned in the sanction.

iv. At any point of time, only one loan shall be outstanding under the scheme.
v. While calculating NTH, proposed Canara Budget loan EMI shall be included and the
8
existing loan EMI need not be included (as existing loan is getting closed/cleared out
77
of new loan proceeds).

 Branches/Offices shall strictly ensure that existing loan at other Bank/FIs is closed out of
proceeds of new Canara Budget loan sanctioned to the borrower at our Bank.
99
 If the proposed loan is not qualifying under Canara Budget schemes i.e Prime & Delight
norms, the same may be considered under general Canara Budget guidelines subject to
eligibility as per extant guidelines.
 All other Canara Budget guidelines shall continue
*****
Page 133 of 212

12. CANARA RENT - (PRODUCT CODE 606)
Canara Rent scheme for financing against rent receivable was introduced during 2001. The
scheme is aimed at giving further thrust to marketing of Retail Lending Schemes.
12.1 PURPOSE:
1. To provide loan to owners (lessors) of property.

2. Loans should be to meet business needs and/or other genuine personal needs of the owners
(lessor) but should not be for any speculative purpose whatsoever.
3. The property should be one leased / rented out to PSUs / Central / State / Semi Govt.
Undertakings, reputed Corporate, banks, financial institutions, insurance companies and
MNCs, including the property leased / rented out to our Bank’s branch / office or house/ flat
leased / rented out to the Bank as quarters to our officers / executives.
4. Canara rent loan should not be sanctioned in cases, where lessor and lessee belong to the
same group.
5. The loan under this scheme may be granted in rural/semi urban places, where the property
(premises) is leased out to our Bank/other Nationalized Banks/PSUs/Reputed Corporate/MNCs
PM
and Central/State/Semi Govt. undertakings.
6. In case the tenant is a Corporate, external rating of the tenant need not be insisted.
However, Sanctioning Authority has to ensure from the financial statements of the
3
tenant/Lessee that the cash flow is sufficient to take care of the payment of monthly rentals.
:5
12.1 ELIGIBILITY:
1. Customers with satisfactory dealings with our Bank.
04
2. Non Customers – should be well introduced to the Bank with satisfactory OPL/ market report
on them.
3. Before disbursement of the loan the property let out / to be let out shall be inspected
3
invariably.
02
12.2 LOAN QUANTUM:

/2
Maximum – 75% of the net rent receivable for the unexpired period of lease, net of TDS and
advance rent taken and other applicable taxes if any.
0
/1
THE METHOD TO COMPUTE THE LOAN QUANTUM IS AS UNDER:

26
i. Gross rent receivables (i.e. total rent receivables for the unexpired lease period)
ii. Less : Applicable TDS on gross rent receivables , Applicable taxes like property tax, good &
service tax (GST) etc. if any and Advance rent taken.
8
iii. Net rent receivables (gross rent receivables minus TDS, other taxes and advance rent taken
77
i.e. (i) - (ii)

iv. Less : Applicable margin on net rent receivables (iii)
v. Eligible Loan Quantum=Net rent receivables - Applicable margin i.e., (iii)-(iv)
99
RELAXATION IN MARGIN:
On case to case basis, relaxations in margin, quantum of loan may be considered by the
authorities as mentioned here under:
ED-CAC may permit loan up to 85% of the gross rental receivables less TDS and advance rent
taken in respect of proposals falling up to their powers.
CAC of the Board may permit loan up to 85% of the gross rental receivables less TDS and
advance rent taken in respect of proposals falling under their sanctioning powers as also that
of MC.
Page 134 of 212

12.3 ADDITIONAL PROVISIONS FOR DETERMINATION OF LOAN QUANTUM:
a) RO/CO head may permit to accept the property leased out to reputed non-Corporate also
selectively in respect of proposals falling up to their powers. Beyond this, may be permitted
by the respective sanctioning authority.
b) Circle Heads (CGM/GM/DGM as the case may be) are permitted to reckon lease rental
receivables arising on account of providing amenities by the owners (lessors) to the tenants
for the purpose of determining the eligible loan quantum under this scheme in respect of
proposals falling within their powers.
In respect of proposals falling within the sanctioning powers of HO, the respective Sanctioning
authority at HO may consider the cases mentioned under (a) & (b) above.
In the case of property (premises) leased out to our Bank/ other Nationalized Banks / PSUs /
Central / State / Semi Govt. undertakings/Reputed Corporates/MNCs the option period of
lease may also be reckoned for the purpose of determining the eligible loan quantum on a case
to case to basis.
PM
(in lakh)
Sanctioning Authority/CACs Sanctioning Powers
RAH HEAD / AGM-RO-CAC/CO-CAC 200
DGM-RO-CAC/DGM CO CAC 300
3
CGM/GM-CO-CAC 500
CGM-HO-CAC
:5 *750
04
*Canara Rent proposal beyond Rs.500 lakh and up to Rs.750 lakh falling under HO powers shall
be processed by Retail Assets Wing at HO.
Canara Rent proposals beyond Rs.750 lakh shall be sanctioned under Canara LRD Scheme.
3
12.5 NATURE OF LOAN: Term Loan – Secured.

02
12.6 RATE OF INTEREST: As communicated by HO from time to time.

12.7 CRG : As per CRG Guidelines issued from time to time.
/2
12.8 REPAYMENT:
0
1. Up to 120 months or unexpired lease period whichever is earlier by respective sanctioning

authority. In respect of loans granted against Rent receivables from Navarathna
/1
Companies, PSUs, AAA rated reputed Companies, Our Bank & Insurance Companies:
26
2. Longer repayment period i.e., up to 144 months OR up to lease period considered for limit
eligibility whichever is earlier, may be permitted by CGM/GM HO - CAC and above authorities
8
77
3. The entire rent receivable from the lessee should be made payable to the Bank. The rent
received in excess of the EMI shall be credited to the borrower’s operative account.
99
4. Option to the party to choose lesser repayment period (i.e. higher EMI) is permitted.
12.9 SECURITY:
1. EMT of the leased property, value of which should be at least 100% of the loan amount.
2. In case EMT of property against the rentals of which loan is proposed is not possible for any
reasons, security by way of mortgage of an alternate property having a value of not less than
150% of the loan amount can be obtained subject to the following:
“Where a third party property is proposed to be taken as collateral security by way of EMT for
an advance, branches shall stipulate / obtain the personal guarantee of the owner/s of such
property. Further, such a proposed guarantor should also open an account with the branch
Page 135 of 212

concerned if he / she does not already have one. Bank’s normal procedure for opening a new
account should be scrupulously followed by the branch and particularly, the introducer of the
account shall be one other than the borrower himself / herself.”
In very deserving cases, based on merits, the sanctioning authority may permit acceptance of
such alternative property with value not less than 130% of the loan amount.
3. In exceptional cases, based on the merits thereof, the respective sanctioning authority may
waive obtention of EMT of the property for loans up to Rs.2 lakh.
4. Assignment of lease rentals in favour of the Bank as per APPENDIX–21.
5. Third party guarantee of person/s of adequate net worth acceptable to the bank. Such
third party guarantee may however, be waived selectively and purely based on merits by the
respective sanctioning authority.
PM
1% of the loan amount with minimum of Rs 5,000/-.
Reduction in Service Charges, processing charges and upfront fee, on other than foreign
exchange transactions may be permitted as defined as per HO Cir. No. 01/2020 dt.01.01.2020,
which are as under:
3
:5
Authority Extent of delegated powers
04
CGM/GM-CO-CAC/DGM-CO-CAC (Circle Head) Upto 10% of applicable charges CGM-HO-CAC
Upto 25% of applicable charges ED-CAC Above 25% of applicable charges
3
DOCUMENTATION CHARGES:
02
Rs.100 per lakh with minimum of Rs.1,000/- and maximum of Rs 25,000/-

/2
INSPECTION CHARGES:
0
of Rs.600/- per year.
/1
26

Inspections during the currency of the loan and these are to be conducted as follows:
8
77
a) In case of regular loans, once in a year and/ or at the time of verification of tax paid
receipts / insurance etc.
b) In case of irregular accounts, visits as per need based to recover the dues.
99
12.11 DOCUMENTATION:
1. Application Form - NF 964.
2. Registered Lease Deed executed between lessor and lessee should be obtained and kept
along with the loan papers mandatorily along With Any one of the following:
2.1 Tripartite Agreement (to be stamped as agreement cum power of attorney) executed
between lessors, lessee and the financing branch authorizing the lessee to remit lease rentals
to the financing branch directly as per Appendix-20
OR
Page 136 of 212

2.2 A power of attorney (to be stamped and notarized) executed by the lessors in favour of
the Bank authorizing the Bank to receive the rents from the lessee, which should be lodged
with the latter (lessee) and acknowledgement obtained.
ED-CAC and above authorities may permit extension of time for obtaining the
acknowledgement of Power of Attorney from the tenants for a maximum period of 45 days
from the date of documentation in genuine and exceptional cases duly justifying the reasons
in the office note.
However, selectively based on the merits of individual cases, Circle Head CO CAC and above
authorities can permit waiver of Registration of Lease Deed provided Tripartite Agreement (to
be stamped as agreement cum power of attorney) executed between lessors, lessee and the
financing branch authorizing the lessee to remit lease rentals to the financing branch directly
along with Lease Deed with undertaking letter to register lease deed whenever required.
A true copy of the registered lease deed executed between lessor and lessee should be
obtained and kept along with the loan papers.
3. The format of the related term loan agreement to be obtained from the borrower (duly
PM
stamped as an agreement) is forwarded to COs who, while communicating the sanction to the
concerned branch, shall also send the related format of the agreement to be obtained.
4. The existing guidelines relating to the inspection of property (both leased/ proposed to be
3
mortgaged), establishing its clear and marketable title based on the LSR, its valuation by our
:5
approved valuer who should be qualified chartered engineer, creation of EMT thereon etc.,
shall be strictly adhered to.
04
5. The existing guidelines / documentation for creation of mortgage / EMT have to be
complied with.
3
02
6. All other documents furnished by the applicant / guarantor as per the application form shall
be held as a part of documentation.
/2
0
1. Obtain a copy of the sanctioned plan issued by the competent authority in the name of
/1
seller / earlier owner/ developer/ landowner, as the case may be, before sanctioning the loan.
26
2. Obtain an affidavit-cum-undertaking from the borrower declaring that the built up property
has been constructed as per the sanctioned plan and/or building bye-laws and wherever
applicable borrower should also submit a completion certificate.
8
77
3. Panel Architect / panel civil Engineer must also certify before disbursement of the loan that
the built up property is strictly as per sanctioned plan and/or building byelaws.
99
4. No loan should be given in respect of those properties, which fall in the category of
unauthorized colonies unless and until they have been regularized, and development and other
charges paid.
5. No loan should be given in respect of properties meant for residential use but which the
applicant intends to use for commercial purposes and declares so while applying for loan.
6. Cost of the Affidavit, certificates etc., should be borne by the borrower/s.
7. The additional documents stipulated above should be preserved along with the loan
documents. Branches are to ensure that the above conditions are communicated to the
borrowers as sanction terms against due acknowledgement.
8. Branches / offices should verify the purpose of the loan and ensure that the proposal fits
into the other guidelines of the scheme.
Page 137 of 212

9. The title to the property should be clear and mortgageable as per the guidelines of the
Bank.
10. End use of the loan should be ensured.
11. The Lending under the segment shall be classified under non-priority, exposure to
commercial real estate sector.
12. Canara Rent proposals with exposures beyond Rs. 5 Crores falling under HO powers shall
be handled, processed and sanctioned by respective Corporate Credit Wings, HO.
12.13 THE SCHEME TO BE MARKETED TO THE LANDLORDS OF OUR BANK ALSO.
REPORTING:
Disbursement / performance / overdues should be reported in PSR 71 and SWL statements.
All other guidelines and safeguards as applicable to this facility should be obtained / followed.
12.14 CANARA RENT SCHEME FOR CORPORATE BORROWERS:
RECKONING OF OPTION PERIOD OF LEASE FOR THE PURPOSE OF DETERMINING THE LOAN
QUANTUM:
In the case of property (premises) leased out to our Bank / other nationalized Banks / PSUs /
PM
Central / State / Semi-Government undertakings / reputed Corporate / MNCs for arriving the
eligible loan quantum, the unexpired period of lease i.e. certain and/ or option period or up
to 15 years whichever is less shall be considered, irrespective of the rating, taking into account
the following:
3
a) In respect of urban / metro areas, collateral by way of EMT of property leased out shall
:5
cover 133% of loan amount besides ensuring receivables.
b) In respect of rural / semi urban areas, collateral by way of EMT of property leased out shall
04
cover 150% of loan amount besides ensuring receivables.
12.15 REPAYMENT PERIOD IN RESPECT OF CORPORATES:
3
1. Upto 180 months or unexpired lease period considered for limit eligibility whichever is
02
earlier, in respect of loans granted against rent receivables from Navarathna companies, PSUs,
AAA rated reputed companies, our Bank and insurance companies.
/2
2. Repayment can be by way of EMI / ballooning / structured installments.

0
3.The same may be permitted by the respective Circle Head-CAC and above authorities up to
their delegated powers under Canara Rent Scheme.
/1
12.16 TAKEOVER NORMS:

26
The takeover norms applicable for retail loans as issued by the Bank from time to time
wherever applicable may be considered for Canara Rent loans granted to corporate also.
8
12.17 AUTHORITY TO PERMIT REDUCTION IN APPLICABLE ROI:

77
To refer Delegation of powers issued by Risk Management Wing updated from time to time.
OTHER MATTER:
99
GST to be deducted unless otherwise lessee brings it on record that they will pay over and
above rent.
*****
Page 138 of 212

13. CANARA MORTGAGE (PRODUCT CODE 605)
13.1 PURPOSE:
To provide loans against the security of equitable mortgage of property (land & building) to
the individuals for non-business purpose only, for meeting any unforeseen expenses, urgent
personal and medical needs etc.
The loan amount shall not be used for any purposes which are speculative in nature. It is to be
ensured that the borrowers have regular source/s of income / adequate verifiable means to
repay the loan.
The loan amount shall be utilized for the purpose for which it is sanctioned and the purpose
should be acceptable to the Bank. The end use of the loan is to be ensured to confirm that
the loan has been utilized for the purpose for which it is sanctioned.
13.2 ELIGIBILITY:
I. Individuals Customers: Having satisfactory dealings with our Bank.
II. Non customers should be well introduced to the Bank with satisfactory OPL / market
PM
report on them.
III. The minimum age of the borrower must be 18 years.
IV. NRI customers, with their resident close relatives as co-borrowers, can avail the loan.
V. Employees of our bank and other Banks (PSU/ Private/ Foreign/ Co-Op banks) are also
3
eligible. [However, the existing Delegation of Powers for Canara Mortgage Loan will
:5
continue.]
VI. No loans under the scheme to Companies/Firms/Business Establishments /Trusts /
04
HUFs.
13.3 MARGIN: 50%
3
13.4 QUANTUM & CRG:

02
a. 50% on the value of the property proposed to be offered as security as per the valuation
/2
report given by the panel valuer of the Bank.

0
OR
/1
b. Rs. 750 lakh,

26
OR
8
c. (i)Salaried class: Low/Normal CRG grade - 96 times last drawn monthly gross salary (Regular
77
income to be ascertained by verifying previous 6 months’ salary slips).

Non- Salaried class: Low/Normal CRG grade - 8 times of cash accruals (Average of the last
three preceding years annual cash accruals) i.e. the financial years immediately preceding
99
the current financial year during which the customer desires to avail loan.
Under this category (Salaried /Non-Salaried), Sanctioning Authority has to ensure that the
party is having adequate income to meet the repayment obligation with availability of
minimum NTH of 35% or Rs.30,000/- whichever is higher after meeting the existing and
proposed EMIs.
(ii) Salaried class: Medium/High CRG grade - 84 times last drawn monthly gross salary
(Regular income to be ascertained by verifying previous 6 months’ salary slips).
Non- Salaried class: Medium/High CRG grade - 7 times of cash accruals (Average of the last
three preceding years annual cash accruals) i.e. the financial years immediately preceding
the current financial year during which the customer desires to avail loan.
Page 139 of 212

Under this category (Salaried / Non-Salaried), Sanctioning Authority has to ensure that the
party is having adequate income to meet the repayment obligation with availability of
minimum NTH of 30% or Rs.25,000/- whichever is higher after meeting the existing and
proposed EMIs.
Whichever is less.
Note: While considering the Income for arriving the quantum of the loan the following points
are to be ensured:
 The customer has to produce documentary evidence regarding the Salary slips/annual
income (If abnormal increase is observed, during concluded financial year, as per
ITR/ITAO, sanctioning authority should ensure the authenticity and sustainability of the
income).
 Further, regularity of salary/income is to be ensured by taking 6 months latest salary
slip / 3 years ITRs/Form 16/ Balance Sheet [Audited Balance Sheet wherever applicable
as per IT Act].
 Salaried person should be in the employment for a minimum period of one year and
PM
confirmed in the service. (Break in service, can be allowed up to maximum period of 6
months in case of switchover from one company to another).
 Non-salaried applicants should have been in the business /profession for the last
minimum period of 3 years.
3
 In case of Non-salaried applicants, the business account shall be exclusively maintained
:5
with our Bank and the entire business transactions / turnover shall be routed through
our Bank.
04
No deviation in margin to be permitted up to GM / CGM / HO CAC.
CRG: As per CRG Guidelines issued from time to time.
3
13.5 REPAYMENT CAPACITY/NTH:

02
NTH guidelines as mentioned in point no.13.4(c) shall be complied

/2
1. Proof of existing income to be obtained, verified & satisfied. It is also to be ensured that
adequate cash flows are available for servicing the periodical instalments.
0
2. While arriving at NTH, income of all the joint applicants / close relatives can be reckoned.
/1
3. One time income / profits on account of sale of property/ assets etc. shall be excluded to
26
duly calculate the regular repayment capacity.

4. Depreciation, Dividend income (Tax Free) and any other income declared in IT returns and
exemption is claimed (Except agriculture income) may be added to arrive quantum of loan
8
and deduction.
77
13.6 Delegation Powers: (including Employees of our bank and other Banks (PSU/ Private/
Foreign/ Co-Op banks)
99
(Rs. In Lakh)
Head of RAH 200
DGM–RO-CAC / 400
DGM-CO-CAC
GM-CO-CAC 500
CGM–CO-CAC 600
CGM/GM-HO-CAC 750*
*Canara Mortgage proposal up to Rs.750 lakh falling under HO powers shall be processed by Retail Assets
Wing and beyond Rs.750 lakh shall be processed by the respective corporate credit wings at HO.
Page 140 of 212

Rate of Interest is linked to the percentage of the Security:
ROI Linked to Security
CRG score Applicable spread Applicable spread Applicable spread

Band where Security is where Security is where Security is
%
equal to 200% >200%=300% >300%
CRG:1 >80 RLLR +1.25 RLLR +1.15 RLLR +1.05
CRG:2 >70 ≤ 80 RLLR +1.50 RLLR +1.40 RLLR +1.30
CRG:3 >60 ≤ 70 RLLR +2.05 RLLR +1.95 RLLR +1.85
CRG:4 ≤60 RLLR +3.55 RLLR +3.45 RLLR +3.35
13.7 RELAXATIONS:
Sanctioning Authority:
PM
In case of applicants having any other Limit / loan including Retail Loans with / without
mortgage:
Canara Mortgage loan shall be sanctioned by respective Sanctioning Authority as per their
3
delegated powers irrespective of the Sanctioning Authority of any other loans/limits availed
by the customer. Sanctioning Authority to ensure the conduct of the existing Loans/Limit and
existing Cash Flows.
:5
04
13.8 NATURE OF LOAN:
Term Loan – Secured and classified as Non-Priority-Retail Loans.
3
02
13.9 RATE OF INTEREST linked with Risk Grade: As advised by H.O. from time to time.
13.10 REPAYMENT:
/2
1. Up to 120 months (10 years) by Respective Sanctioning Authority.

2. Up to 144 months (12 years) by Next Higher Authority on case to case basis.
0
3. Up to 180 months (15 years) by Circle Head CO-CAC on case to case basis.
/1
For higher repayment consideration, the entire sanction may be permitted by the higher authorites
26
under who’s the proposal falls as per the above delegation.
13.11 SECURITY:
8
 Equitable mortgage of property which is acceptable to the Bank having clear

77
marketable title and which is enforceable. Minimum value of the property should be
200% of the loan amount. In case of Simple Mortgage of property, the same shall be
permitted by Ro-Head-CAC and above authorities as per the Scheme of Delegation of
99
Credit Sanctions issued by RM Wing.

 No deviation in security to be permitted up to GM / CGM / HO CAC.
 Mortgage of residential house/ flat / commercial property in the name and possession
of the borrower either self-occupied or vacant or fully/ partially tenanted.
 Physical verification of the property is to be conducted before creation of mortgage.
 Loan against vacant land only is not permissible. Loan against Lease hold properties
where lessor is Govt. authority and Leasehold rights permit mortgage, can also be
permitted selectively. However, in such cases, it is to be ensured that unexpired lease
period of lease is more than the repayment period of the loan.
Page 141 of 212

 Canara Mortgage Loan can be permitted against the property, which is already
mortgaged under any Retail Lending Scheme OR vice-versa, subject to the compliance
of all other guidelines as applicable to respective Retail lending Scheme guidelines.
 In respect of sanctioning Canara Mortgage Loan against property/ies already mortgaged

for Education Loans, outstanding liability under such Education Loan to be considered
as 200% for arriving residual value.
Further, if any of the existing loans (under Retail Loans) to same borrower are
sanctioned by a higher authority, due to certain relaxations, etc., the said higher
authority shall sanction such loans with the same security even though it falls under
the delegated powers of a lower authority. All other existing guidelines under any Retail
Lending scheme with respective of Margin norms, LTV Ratios, Income criteria, NTH and
Repayment capacity remains unchanged and will continue.
 Properties in the name of Company/ Proprietorship firm, Partnership Firm/ LLP are
eligible subject to Corporate Guarantee of respective Company/ Firm.
PM
 Open plot/land shall not be considered as security under Canara mortgage Scheme.
 When a mortgage is created on a property, which is already leased / rented to a third,
3
party, in the event of the Bank deciding to enforce mortgage asset, it can do so subject
:5
to the existing lease/tenancy. Even, SARFAESI Act does not empower Bank to evict the
tenant/lessee (created prior to mortgage) and Bank has to take recourse-observing
04
due process of law through eviction proceedings.
A consent letter (NF-1046) shall be obtained from the tenant/s wherever tenanted
properties are mortgaged as security/ies under the scheme.
3
02
 As per Section 65 A of the Transfer of Property Act, a mortgagor, while lawfully in

possession of the mortgaged property, shall have power to make lease thereof but such
/2
lease should not be more than 6 months and such a lease is subject to mortgage. Any
tenancy created by the mortgager after the mortgage would not be binding on the
0
Bank/FI.
/1
 The property, which is offered as security for the loan, should be preferably situated
26
in the same place where the proposed borrower intends to avail the loan. Third party
property only in the name of the close relative and spouse can be permitted subject to
the owner/s of such property also joining the loan as joint borrower. While arriving at
8
NTH, income of all the joint applicants/ close relatives can be reckoned.
77
13.12 SECURITY RESTRICTION ON ELIGIBLE PROPERTIES:

99
a. Properties of public utility like School/ College Buildings/ Educational Institutions,

Hospital Buildings etc. or any other similar social sector infrastructure and religious
activities shall not be accepted.
b. Agriculture properties, Agriculture Lands converted for Non-residential/ commercial use
and lying vacant sites, Industrial Property and Industrial open land are not eligible.
13.13 PERSONAL GUARANTEE:

Personal Guarantee of spouse / legal heirs is to be mandatorily obtained.
13.14 EXISTING LIABILITY UNDER OD (SYND BANK):
The OD facilities permitted by Syndicate Bank (presently scheme discontinued) will continue
as per sanction terms & conditions and 10% drawing Power will be reduced every year as per
the sanction till its closure. No fresh loans/advances shall be granted in this Product.
Page 142 of 212

13.15 PROCESSING CHARGES: 0.50% of the loan amount with minimum of Rs.5,000/-.
13.16 DOCUMENTATION CHARGES: Rs.100/- per Lakh (Minimum of Rs.1,000/- & Maximum of
Rs.25,000/-).
1) Loan amount up to Rs.10.00 Lakh: Rs. 200/- per borrower per inspection with a
expenses incurred, whichever is higher. (Out of pocket expenses if any to be collected
separately.)
Inspections include Pre-Sanction inspection, Post-Sanction inspection and regular
follow up inspections during the currency of the loan and these are to be conducted as
follows:
a) In case of regular loans, once in a year and/ or at the time of verification of tax
paid receipts/insurance etc.
PM
b) In case of irregular accounts, minimum of once in a half year or as per need
based to recover the dues.( modified charges are effective from 01.03.2023)
13.18 DOCUMENTATION: Application form – NF 964
3
The existing guidelines relating to the inspection of property (proposed to be mortgaged),
:5
establishing its clear and marketable title based on the LSR, its valuation by our approved
valuer who should be qualified chartered engineer, insurance, creation of EMT thereon,
04
marking of the lien in the revenue records etc., shall be strictly adhered to.
The existing guidelines/documentation for creation of mortgage/ EMT will have to be complied
with.
3
02
/2
 In cases where the applicant approaches for a credit facility under Canara Mortgage
loan, obtain a copy of the sanctioned plan issued by the competent authority in the
0
name of seller / earlier owner/ developer/ landowner, as the case may be, before
/1
sanctioning the loan.

26
 Obtain an affidavit-cum-undertaking from the borrower declaring that the built up

property has been constructed as per the sanctioned plan and/or building bye- laws
and wherever applicable borrower should also submit a completion certificate.
8
77
 Panel Architect / Panel civil Engineer must also certify before disbursement of the loan
that the built up property is strictly as per sanctioned plan and/or building byelaws.
99
 Further, Branches / offices to note that no loan should be given in respect of those
properties, which fall in the category of unauthorized colonies unless and until they
have been regularized, and development and other charges paid.
 Also, no loan should be given in respect of properties meant for residential use but
which the applicant intends to use for commercial purposes and declares so while
applying for loan.
 Cost of the Affidavit, certificates etc., should be borne by the borrower/s.
Page 143 of 212

 The additional documents stipulated above should be preserved along with the loan
documents. Branches to ensure that the above conditions are communicated to the
borrowers as sanction terms against due acknowledgement.
 The lending under the segment shall be classified under non-priority.
 Disbursement / performance / overdues should be reported in PSR 71 and SWL

statements.
 Canara Mortgage proposals with exposures beyond Rs.750 lakh shall be handled,
processed and sanctioned by respective Corporate Credit Wings, HO.
*****
PM
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Page 144 of 212

14. CANARA SITE (PRODUCT CODE 620)
In the present era of competition and the comfortable liquidity position, banks are innovating
more and more attractive and customer friendly products to expand the business horizon and
clientele base. During the last few years, retail lending has assumed greater importance among
banks in view of better yield and lower NPA level. With a view to further expand our qualitative
retail portfolio and market developments, the loan scheme Canara Site has been introduced.
14.1 OBJECTIVE:
Loan scheme to individuals for purchase of Residential / House Sites.
14.2 PURPOSE:
 Purchase of Residential Sites from State Development/Town Planning Development

Authorities or from any other body constituted by the Government for distribution of
sites.
PM
 Purchase of Residential Sites from statutory authorities of Central/ State Governments,
local authorities either exclusively or in partnership with private sector entities
provided such sites / layouts are duly approved by the statutory authority of the State
Government and where registrations can be effected.
3
 The land / plots of Government Development Authorities land such as DDA, HUDA etc.,
directly from authorities or under second sale. Further, the plots in the colonies
 :5
approved by Govt. Authorities along with approved maps and RERA approved projects.
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To takeover accounts from other banks subject to fulfilment of any of the above
existing purposes. Takeover norms as applicable in respect of Retail Loans under
Housing Loan and subsequent guidelines if any to be complied.

3
However, as per the Housing Loan take over norms, loans where projects are not
completed shall not to be taken over. In respect of Site Loan, as the loan is given for
02
purchase of Site, obtain only undertaking letter from the borrower for construction of
the house within the stipulated time (i.e., as stipulated by the development authorities
/2
while allotting the sites).

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14.3 ELIGIBILITY:
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 Customer of the Bank with satisfactory dealings. Sanctioning authority may consider
26
loans to new customers provided the account is properly introduced to the Bank and
who satisfy other eligibility norms.
 Age of the applicant should be less than 60 years at the time of availment of the loan.
8
 NRIs are also eligible for loans under the scheme.

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 Employees of our Bank are also eligible for loan under the subject scheme on the same
terms and conditions as applicable to customers and provided minimum net take home
salary of 40% is maintained, (no relaxation is permissible).
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SALARIED CLASS:
 Confirmed in the service.

 Minimum net take home pay shall be 40% after meeting the proposed loan instalment.
Selectively, this can be reduced up to 25% by the respective sanctioning authority.
 Salary certificate for the past 6 months should be obtained and verified to ensure that
the applicant is having adequate net salary to repay the loan instalment.
NON-SALARIED CLASS:
Page 145 of 212

 Businessmen and professionals and self-employed like Doctors, Chartered Accountants,
Architects, Engineers and others who are in the business or profession for minimum period of
3 years and whose net annual income is Rs.1 lac or more as evidenced by the latest ITR.
 To submit Balance Sheet or other documentary evidence along with the application form.
 It shall be ensured that the net annual income is adequate to cover the loan installments.
 Minimum net take home pay shall be 40% after meeting the proposed loan instalment
selectively, this can be reduced up to 25% by the respective sanctioning authority.
14.3 LOAN QUANTUM:
3 years gross salary / gross annual income OR 75% of the cost of the site/guideline value
(Whichever is less).
14.4 MARGIN:
 A minimum margin of 25% shall be stipulated / maintained on the Project Cost consisting of
site cost as shown in the allotment letter plus development charges, if any, not exceeding
10% of the site cost supported by documentary evidence.
PM
 Advance payments, if any, made by the applicant should be by way of demand draft/
cheques /NEFT/RTGS etc. only. Proper documentary proof should be obtained / verified
and kept along with the loan document without fail. Mere stamped receipts towards cash
payments should not be accepted.
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14.5 RATE OF INTEREST: As per guidelines issued time to time.
14.6 REPAYMENT:
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a) Loan to be repaid in EMIs in a maximum period of 10 years OR maximum period permitted
by the allotment agency for construction of house OR upto 65 years of the borrower at the
3
time of closure of loan, whichever is earlier.

b) One month repayment holiday is permissible.
02
c) In case of part payment of site amount, the repayment to commence after three months
from the date of first disbursement of the loan.
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d) Repayment to be ensured by way of ECS Registration/PDCs/debit to salary or Business

account etc.
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(The repayment to be ensured by any of the two modes specified above).

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14.7 SECURITY:
26
1. EMT of the Residential site proposed to be purchased.

2. Suitable Co-obligation / Personal Guarantee of adequate net worth shall be obtained.
8
However, purely based on merits, selectively this can be waived by the respective
Sanctioning Authority.
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EMT to be created based on Allotment letter/Receipt for payments made/NOC from the
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allotment authority to mortgage the loan and other agreements/documents given at the time
of allotment with LSR. Registered document to be obtained immediately after registration and
to be made part of EMT documents with a link letter.
14.8 NATURE OF LOAN: Term Loan- Secured.
14.9 DISBURSEMENT:
1. The loan amount is to be disbursed directly to the development authorities by way of crossed
demand draft.
2. In case the site value is payable in stages, the disbursement should also be in stages
correspondingly ensuring proper demand from such agencies.
3. Registered sale deed in favour of the borrower should be followed up to obtain the same at
the earliest and kept along with the loan papers.
Page 146 of 212

4. In case of takeover of loan account from other Banks/FIs existing guidelines on takeover of
Retail Loans to be followed.
Presently, the following authorities up to the loan quantum stipulated herein can sanction the
loan under this scheme:
(Rs. In Lakhs)
Branches headed by Scale II* 10
Branches headed by Scale III* 15
CM in VLB/ELB*/ DM-RO-CAC# 25
AGM VLB/ELB*/ DM-CO-CACs# 30
DGM Heading Branches*/ Head of RAH 35
AGM-RO-CAC 35
DGM-RO-CAC 50
DGM-CO-CAC/ DGM-CO-CAC (Circle Head) 60
PM
CGM/GM-CO-CAC (Circle Head) 75
CGM/GM-HO-CAC Above Above 75
*No powers to sanction Canara Site loans at Branches.
## DM-RO-CAC/DM-CO-CAC is not in existence as per extant guidelines.
3
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0.50% of the Loan amount (Minimum of Rs.1500 and Maximum of Rs.10,000).
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14.12 INSPECTION OF PROPERTY:
3
Inspection of property should be conducted once in 6 months and inspection report to be kept
with loan papers.
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1. Loan amount up to Rs.10.00 Lakh: Rs.200/- per borrower per inspection with a Maximum
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2. Loan amount above Rs.10.00 Lakh: Rs.300/- per borrower per inspection or actual
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(Out of Pocket Expenses if any to be collected separately).

14.14 CONVERSION TO HOUSING LOAN:
8
1. In case the borrower desires to construct a house on the site allotted by availing loan under
the subject scheme, Housing Loan may be considered subject to compliance of terms and
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conditions relating to Housing Finance Scheme. In such cases, the Housing loan amount to be
arrived based on Cost of Construction and required Margin and Total Housing Limit should be
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arrived by adding the Canara Site loan outstanding.

2. After sanction of composite Housing loan and documentation, the amount equivalent to site
loan liability should be debited to the Housing Loan account to close the site loan account.
Further disbursements to be made for construction as per progress of work. The rate of interest
shall be the then prevailing rate on Housing Loans.
14.15 CLASSIFICATION: Non - Priority – Secured
*****
Page 147 of 212

15. TEACHERS LOAN SCHEME (PRODUCT CODE 609)
Teaching is a noble profession. To extend a helping hand in case of financial difficulties of

teaching/ non-teaching staff bank has evolved a scheme since long.
purpose.
15.2 ELIGIBILITY:
The loan to be sanctioned to confirmed teaching/non-teaching staff whose salary is being
credited in the financing branch, with an undertaking letter from the salary disbursing
authority not to shift the salary account without NOC from the branch.
In cases where salary credit is not feasible, loans shall be permitted only under special
packages permitted by Circles/HO as per their delegated powers upon registering of salary
mandate by salary disbursing authority and recovery is ensured. No scattered finance with
salary mandate registration shall be sanctioned by branches. Salary Certificate, Salary
PM
Mandate/undertaking letter not to shift the salary account shall be signed by the Salary
Disbursing Authority and not by any Superior Officer/Superior Authority.
Recovery of EMI shall be through salary account only. In case of special packages as mentioned
3
above, recovery would be through salary mandate. However, few PDCs/ECS mandate shall be
:5
taken for recovery purposes.
04
A letter from the branch to be addressed to the Salary disbursing authority requesting them to
inform the branch in case of transfer / termination/ suspension / shifting of salary account to
other bank and to route the terminal benefits of the employee through the financing branch
3
15.3 NET TAKE HOME SALARY:

02
NTH after meeting the proposed EMI should be minimum 30 % of the Gross Salary or Rs 10,000/-
/2
whichever is higher.
CGM/GM-HO-CAC can permit relaxation in NTH up to 25% of gross salary subject to
0
maintenance of minimum of NTH of Rs.10,000/- under special packages

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15.4 SANCTIONING AUTHORITY AND QUANTUM OF THE LOAN:

26
1. 6 months gross salary subject to a maximum of Rs 2 lacs by branches headed by Scale I, II

& III as well as Credit Managers/Senior Managers in VLBs/ ELBs.
8
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2. A quantum of loan up to 10 months gross salary subject to a maximum of Rs. 3,00,000/-

may be permitted by CM of VLB, AGM of ELB, DM/AGM RO-CAC, DM-CO-CAC /AGM-CO- CAC and
above authorities.
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15.5 REPAYMENT:
Entire loan must be cleared within a maximum of 48 equated monthly instalments and the
same can be relaxed up to 60 months by next higher authority. Repayment should commence
one month after the grant of the Loan.
15.6 CO-OBLIGATION:
Suitable co-obligation good for the loan amount and acceptable to the bank should be obtained
irrespective of quantum of loan. However, as far as possible, cross co-obligation (mutual co-
obligation) to be avoided.
15.7 RATE OF INTEREST: As advised from HO time to time.
Page 148 of 212

15.8 PROCESSING CHARGES: 1.00% of the loan amount with minimum of Rs 50/-.
15.9 DOCUMENTATION/ INSPECTION CHARGES: Nil.
15.10 SANCTION OF OTHER CLEAN LOANS:

Wherever Teachers’ Loan is granted no other clean credit facility should be granted to the
same borrower. In case of other retail loans, the same can be permitted by respective
sanctioning authority subject to maintenance of 30% NTH salary. In case higher quantum of
loan is requested by eligible teachers, the same can be permitted under Canara Budget
Scheme, provided the applicant fulfils the norms of Canara Budget Scheme
15.11 NATURE OF LOAN: Non-Priority clean loan classified under Retail Loans.
1. KYC norms to be strictly complied.
PM
2. The undertaking letter not to shift the salary without our NOC to be obtained from the
Salary Disbursing authorities at District/ Block level as the case may be and not from the Head
Master/ Principal as a matter of routine by ascertaining the correct Salary Disbursing Authority.
3 Obtention of PDCs/ECS mandate to be ensured.
3
4. Other guidelines detailed under common guidelines are to be adhered to.
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5. CRG guidelines as applicable from time to time shall be adhered.
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*****
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Page 149 of 212

16. CANARA PENSION (PRODUCT CODE 607)
Our Bank has been a pioneer in implementing various social welfare schemes and extending
financial assistance to the needy for social upliftment. In the 50th anniversary of Indian
Independence a loan scheme for the benefit of senior citizens was introduced and the scheme
has been renamed as Canara pension during October 2001.
16.1 PURPOSE:
Component-1:
To meet the cost of medical expenses and other genuine personal needs of the
pensioners/Family Pensioners.
AND/ OR
Component-2:
To make payment of premium of IBA Group Mediclaim Insurance Policy for Retired Employees
of our Bank/Family Pensioners of Retired Employees of our Bank who have opted for and are
covered under the scheme.
PM
16.2 ELIGIBILITY:
The following types of pensioners who are drawing their pension through our branches are
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eligible for financial assistance under the scheme:
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i) All Central Government pensioners (viz., Central, Civil, Railways, Defence, Armed Forces,
Defence Civilians and Freedom Fighters etc.)
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ii) All State Government pensioners.
iii) Pensioners of all Government Department Undertakings.
iv) Pensioners of all Public Sector Undertakings / Corporate pensioners.
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v) Family pensioners of all the above categories.

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vi) Pensioners and Family Pensioners of the Bank.

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16.3 QUANTUM, NTH & REPAYMENT PERIOD:

a) In respect of Retired Employees of our Bank/Family Pensioners of Retired Employees
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of our Bank:
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20 months’ pension amount or Rs.10,00,000/- whichever is less, subject to maintenance of

26
NTH of 25% of Gross after deducting the proposed EMI.

Repayment Period:
i) To be repaid in 72 EMIs if the pensioner is below the age of 65 years.
8
ii) To be repaid in 60 EMIs if the pensioner is above the age of 65 years

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b) For General Public Pensioners/Family pensioners:

Age at the time of Max Loan Amt (24 months Repayment Age at the time of
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Loan sanction Pension or Rs.) Period full Repayment

Below 60 years 15.00 lakhs 84 months Up to 67 years
60- 70 years 10.00 lakhs 60 months Up to 75 years
70 - 75 years 5.00 lakhs 36 months Up to 78 years
Repayment period and age at the time of full repayment are to be adhered for all categories
of pensioners as mentioned in above table.
Net Take Home (NTH): Minimum NTH of 40% of the Gross Pension after deducting the existing
and proposed EMI.
Page 150 of 212

Branch in-charge is the sanctioning authority.
Credit Managers and Senior Managers in VLBs and ELBs, other than Branch Heads can also
sanction, duly adhering to the scheme guidelines. Delegation of Powers as communicated
from time to time to be adhered under the scheme.
16.5 SECURITY:
1. In case of Loan to Pensioners
Co-obligation of the spouse (wherever there is a provision for family pension) or any other
person/pensioner good for the amount, if necessary, may be stipulated by the sanctioning
authority.
2. In case of Loan to Family pensioner:
PM
Third party guarantee / co-obligation good for the amount should be obtained invariably.
16.6 RATE OF INTEREST: As advised by H.O. from time to time.
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16.7 Canara Retail Grade (CRG): CRG guidelines as applicable from time to time shall be
adhered.
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16.8 PROCESSING CHARGES: Processing charges are waived in respect of the loans under
this scheme.
3
16.9 DOCUMENTATION/ INSPECTION CHARGES: Nil.

02
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a) NF 965 – Loan application (Retail Lending).

0
b) NF 991 – Take Delivery letter to DPN.

c) NF-967 – Certificate of compliance of Terms and Conditions.
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d) Irrevocable Mandate as per APPENDIX-19.

e) Particulars of the loans granted should be noted invariably in the Pension Register/ PPO
26
maintained with the Pensioner and SB master in the system of the concerned Borrower to
ensure prompt recovery of loan installments. The fact of sanction of pension loan is to be
informed to Pension Payment Authority.
8
f) Production of bills / vouchers is not mandatory.

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16.11 CLASSIFICATION: Non-Priority.

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16.12 ACCOUNTING:
• Product Code: 607 – Canara Pension.
• Scheme Code: 70500.
• Sector Code: 25100- Other Non-Priority Loan.
16.13 REPORTING/MONITORING:
Disbursement performance and overdues should be reported in PSR-71 (monthly). Overdue

accounts should also be reported in Special Watch Statement.
Page 151 of 212

16.14 OTHERS:
 Branches/Offices to ensure that monthly pensions are being credited to the Savings
Bank Account of the pensioners regularly without default.
 A copy of the PPO should be obtained and kept with the loan papers.
 The fact of sanction of Canara Pension loan to be informed to Pension disbursing
authority with a request to not to shift the pension without obtaining NOC from us.
 Loans sanctioned under the scheme are to be followed regularly for their up to date
recovery and immediate steps are to be initiated in case of default by ensuring the
Pensioner’s whereabouts on an ongoing basis.
16.15 SCHEME NORMS OF CANARA PENSION LOAN SCHEME TO RETIRED EMPLOYEES OF OUR
BANK & THEIR FAMILY PENSIONERS WHO HAVE OPTED FOR THE IBA GROUP
MEDICLAIM INSURANCE POLICY:
16.16.1 LOAN QUANTUM:
PM
Maximum loan eligibility of the pensioner/Family pensioner to remit the Annual Premium of
the IBA Group Mediclaim Insurance Policy as a Second Loan shall be.
 The amount of Annual Premium payable for the year.
3
OR
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 Maximum, eligible loan amount as per Canara Pension Loan Scheme (Presently
maximum loan of Rs.10,00,000/-) MINUS existing liability if any.
04
OR
 Rs.90,000/-
3
Whichever is lower out of the above three.

02
However, the maximum loan liability at the time of sanction and disbursement of loan under
both the component shall not exceed 20 months’ pension amount or Rs.10,00,000/- (whichever
is lower).
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*****
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Page 152 of 212

17. CANARA SOLAR (PRODUCT CODE-623)
The scheme for financing solar water heating systems is implemented in association with
Ministry of Non-conventional Energy Sources (MNES) promoting the use of Solar Water Heating
Systems / Lighting under which interest subsidy will be provided by MNRE.
17.1 PURPOSE:
For purchase & installation of Solar off grid (Photovoltaic and Thermal) system with necessary
Accessories. The scheme is applicable for solar lighting and also solar water heating system.
17.2 ELIGIBILITY:
a) All individuals - (including professionals and salaried class) who are credit worthy and have
definite sources of repayment including our own employees who are confirmed in the services
of the Bank.
b) Institutions, Associations, Small Business establishments, Industrial establishments,
Hospitals, Hotels, Hatcheries, who are creditworthy are also eligible.
PM
c) Salaried individuals including our employees should have minimum monthly net take home
salary of 25% of their gross salary OR Rs. 2000/- whichever is more after meeting the loan
instalments under the proposed scheme.
d) Professionals and other non-salaried class should have a minimum net yearly income of Rs.
3
50,000/-.
17.3 QUANTUM OF LOAN / MARGIN:

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04
Not exceeding 80% of the project cost (within the ceiling specified against each asset).
MARGIN:
3
20% of project cost for solar water heaters (10% for PVS from
15% on the cost of the system including accessories
02
17.4 SECURITY:
/2
a) Hypothecation of the equipments to be purchased out of the loan.

b) Suitable co-obligation good for the loan amount OR adequate approved securities equal to
0
the loan amount as collateral.

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c) In case of industrial / commercial borrowers, collateral securities such as immovable

properties taken, if any should be extended for this loan also.
26
NOTE: Obtention of co-obligation/collateral security can be waived at the discretion of the

sanctioning authority after duly satisfying about the repaying capacity of the borrower.
8
17.5 TYPES OF SYSTEMS AND UNIT SIZE:

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1. Systems of any capacity will be eligible for loan.

2. Both Flat Plate Collector based systems (manufactured by companies which had a valid
99
BIS license as on 31.10.2004 or which had applied for renewal of their existing licenses by that
date) and Evacuated Tube Collector based systems (MNRE approved) can be financed. (List of
approved manufacturers is provided by HO from time to time).
3. Approximate cost details of the solar water heater systems of different capacities are
furnished in the Annexures as below:
APPENDIX-22 (Retail Lending Manual-31.03.2020)- Flat Plate Collector based systems
APPENDIX-23(Retail Lending Manual-31.03.2020) - Evacuated Tube Collector based systems
The cost indicated in the annexures as above includes the cost of collector, insulated hot water
storage tank, system pipings, instrumentation, controls etc. The cost also includes
maintenance responsibility of the systems by the manufacturers for five years.
Only need based finance with reference to actual cost as per the proforma invoice/ quotation
is to be considered.
Page 153 of 212

17.6 DOCUMENTS TO BE PRODUCED BY THE APPLICANT:
i) Documentary proof regarding income such as salary certificate, income tax assessment
order, etc., for ensuring that the applicant has adequate repaying capacity.
ii) In case of business establishments where higher capacity is required, branches may obtain
balance sheets/other financial statements for the last three years to ensure their
creditworthiness. Further, all guidelines as applicable to Term loans should be strictly adhered
to. The savings on energy expenses should justify the investment.
iii) Proforma invoice/quotation. It is also to be ensured that the dealer would give performance
guarantee letter after installation for five years.
17.7 CLASSIFICATION OF ACCOUNTS:

The advance is to be classified as per the nature of the borrowers i.e., to Small Enterprises
unit as Priority Sector – Small Enterprise, Medium Enterprise – Non Priority Sector –
Medium Enterprise, to individuals for domestic use as Non-priority, etc.
17.8 APPLICATION:
NF 965 - Common application cum credit report for personal loans. For commercial and
industrial units and others applications depending upon the category of borrowers as per extant
PM
guidelines are to be obtained.

Customers: As per normal delegated powers under Term Loans (other than agriculture).
3
Our Employees: Divisional Manager of the Circle.
:5
Branches / offices may permit loans under this scheme within their delegated powers as per
‘Delegation of Powers’.
04
i) Agreement as given in APPENDIX-24. However, in Para No.2 the ROI column has to be
3
changed to applicable rate (as against the 5% as per the existing scheme). For non-priority
02
present rate is 12.50% and it is to be filled in. In the case of SMEs, the applicable graded ROI
for Term loans to be filled in.
ii) Common Hypothecation Agreement is to be obtained wherever the total limit permitted
/2
(both fund based and non-fund based) is over Rs.50 Lakh and multiple credit facilities are
0
extended. Branches may be guided by Manual of Instructions on

Documentation (revised upto 31.12.2004) and other Circulars / guidelines issued from time to
/1
time.
iii) NF 803 - Letter evidencing execution of documents.
26
iv) Borrowers should confirm to the bank for having received the system in good condition, its
proper installation and satisfactory working.
v) Authorisation letter to debit SB / Current / OD / OCC account for margin, instalment &
8
interest.
77
vi) Stamped receipt for the full value.

vii) Letter for waiver of insurance, NF 368, wherever applicable.
99
viii) Mandate to deduct from salary in case of salaried persons.

ix) Performance guarantee letter from the supplier as per APPENDIX-25 should be obtained.
17.11 DISBURSEMENT:
a) After satisfactory installation of the system, full invoice value of the system should be
remitted directly to the suppliers against their proforma invoice/quotation, by
collecting the required margin amount from the borrower. Alternatively, an advance of
25% may be made to the supplier and balance 75% to be remitted after the system is installed
satisfactorily and necessary mandate from the borrower is obtained to that effect.
b) Before remitting the amount, branches should also ensure that the items to be purchased
are ready for delivery and party has deposited the margin money. Relative
bills/vouchers/receipts should be obtained and lodged along with loan papers.
Page 154 of 212

The applicable rate of interest will be as advised by HO from time to time.
17.13 SERVICE CHARGES:

17.13.1 PROCESSING CHARGES:
Processing charges to be collected at 0.1% of loan amount for domestic users with a minimum
of Rs 100 and maximum of Rs 250/-.
For all other: Upfront fee as applicable for Term Loans should be collected.
Our Employees: No processing Charges to be collected.
17.13.2 DOCUMENTATION CHARGES: Nil.
17.13.3 INSPECTION CHARGES:
1) Loan amount up to Rs.10.00 Lakh: Rs. 200/- per borrower per inspection with a
2) Loan amount above Rs.10.00 Lakh: Rs.300/- per borrower per inspection or actual expenses
incurred, whichever is higher.
17.14 REPAYMENT:
(i) Repayment period can be fixed in consultation with the borrowers subject to a minimum of
PM
3 years and maximum 5 years.
(ii) In equated monthly instalments (EMIs).
(iii) Repayment holiday - 3 months from the date of grant.
(iv) First instalment to commence from the 4th month from the date of availing the loan.
3
17.15 INSURANCE:
(i) Loans upto Rs.50,000/- : No insurance is to be insisted.
:5
04
(ii) Loans above Rs.50,000/- : Insurance should be obtained. However, it can be waived at the
discretion of the Sanctioning Authority / Higher authority not less than the rank of CM/DM.
Wherever Insurance is waived, letter of request for waiving insurance for goods under lien to
3
the Bank NF 368 as per the existing guidelines should be obtained.

02
17.16 INSPECTION:
Inspection should be conducted at the time of installation. Thereafter, quarterly inspection
/2
should be conducted in respect of overdue loans.

0

/1
a) Where the borrower is our existing customer, the branch / sanctioning authority should
satisfy that the account is well operated during the last few months. This condition may be
26
waived in deserving cases by the sanctioning authority. In the case of applicants, who are not
our customers, the branch should ensure that they are well introduced and are credit
worthy/respectable.
8
b) While sanctioning the loan, the sanctioning authority should satisfy about the borrower’s
77
repaying capacity, net take home salary/income and probable saving in energy expenditure.
c) In the case of salaried class, as far as possible, it should be ensured that the salary is credited
99
to the SB A/c. of the customer with our branch. Alternatively, a mandate should be lodged
with the employer to facilitate easy recovery of instalments. The sanctioning authority may
waive this stipulation, if they are satisfied about the prompt recovery of loans.
17.18 REPORTING:
Performance under disbursement and outstanding should be included in PSR 71.
Overdues should also be reported in Special Watch statement besides account-by-account
review through RLMS package. Separate column to be provided by the branch for this scheme
in both the statements. Branches to note that loans granted for domestic individual users alone
are included in the above statements.
a) Branches should send statement on progress in the implementation of the scheme as per
Part-A of APPENDIX-29 and position of out standings, demand, recovery and overdue as per
Part-B of APPENDIX-29 every quarter to designated Section at Circle Office. These sections
Page 155 of 212

then shall submit the consolidated data to Priority Credit Section, PC Wing, and HO
immediately.
b) Number of loans sanctioned during the quarter, number of loans and amount outstanding at
the end of the quarter are to be reported in Part E of PSR-22 in respect of loans to SME sector
and submitted to SME Section, Circle Office for consolidation and reporting to SME Business
Unit, MSME Wing, HO.
17.19 UP FRONT INTEREST SUBSIDY: NA.
*****
PM
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Page 156 of 212

18. CANARA JEEVAN (PRODUCT CODE (625)
REVERSE MORTGAGE LOAN FOR SENIOR CITIZENS
The Union Finance Minister during his budget speech for the year 2007-08 had announced
formulation of a novel financial product for Senior Citizens i.e. Reverse Mortgage Loan.
Reverse mortgage loan is a loan that allows owners of residential properties to convert their
home ownership into cash flows, for meeting their living and other expenses. Unlike mortgage,
which is generally used to secure finances, Reverse Mortgage converts a self-owned property
into finance.
“CANARA JEEVAN”- Reverse Mortgage Loan Scheme (RML) For Senior Citizens” scheme was
introduced with effect from 22.01.2008.
18.1 PURPOSE:
To meet the financial needs of Senior Citizens owning self-occupied residential property.
ELIGIBLE BORROWERS:
PM
a) Owners of residential house/flat, who are residents of India.
b) Owner of the property should be above 60 years of age.
c) The loan shall be in the joint names of the borrower and his spouse irrespective of the title
of the property.
3
d) In such cases at least one of them should be above 60 years of age and the spouse/joint
borrower should be more than 55 years of age.
:5
e) In case of jointly owned properties the joint owner who is aged above 60 years shall be the
04
first borrower.
f) The property should be self-acquired and self-occupied as permanent primary residence. No
loans against ancestral property to be given.
3
g) The residential property should be free from any encumbrances.

02
h) The residual life of the property should be atleast 20 years.

i) In case of flats the age of the flat should not be more than 10 years.
j) Commercial property will not be eligible for reverse mortgage loan.
0 /2
18.2 DETERMINATION OF LOAN AMOUNT:

The amount of the loan will depend on the market value of residential property, as assessed
/1
by the bank, age of borrower/s and prevalent interest rate.

26
The table given may serve as an indicative guide for determining loan eligibility:
A) In respect of House: Age of borrower Loan as proportion of Assessed Value of Property*
8
60-65 Years 70%

77
66-70 Years 70%

71-75 Years 80%
99
Above 75 Years 90%

*Loan amount including interest till maturity.
B) In respect of flats:
Age of Borrower Loan as per proportion of Assessed Value of Property*

Age of the flat
Less than 2 Years 2-5 Years 5-10 Years
60-65 Years 60% % 55% 45%
66-70 Years 65% 60% 50%
71-75 Years 70% 65% 55%
Above 75 Years 75% 70% 60%
*Loan amount including interest till maturity.
Page 157 of 212

The Equity to Value Ratio- EVR should not at any time during the tenor of the loan fall below
10%.
Subject to the above, the minimum loan quantum shall be Rs 5.00 Lakh and the maximum shall
be Rs 50 Lakh in case of independent houses.
In respect of flats the maximum quantum shall be Rs 25.00 Lakh.
18.3 NATURE OF PAYMENT:

Nature of payment to be decided in advance (option of payment is to be exercised by the
borrower at the beginning) as part of the RML covenants, as under:
i) Periodic payments (monthly/quarterly) to be decided mutually between the bank and

the borrower upfront.
ii) Option once exercised for monthly or quarterly payments shall remain unchanged
throughout the tenor of the loan and interchangeability cannot be permitted.
iii) One time Lump-sum payment, not more than 20 % of the eligible loan amount.
iv) Lump-sum payments may be made conditional and limited to special requirements such
PM
as medical exigencies, upgradation, renovation & extension of the house etc.
v) Chart showing monthly/quarterly/lumpsum payments are furnished in the APPENDIX -11,
APPENDIX-12 & APPENDIX-13 in MOI updated till 31.03.2022.
3
:5
1 Up gradation, renovation and extension of residential property.
2 For uses associated with home improvement, maintenance/insurance of residential property.
04
3 Medical, emergency expenditure for maintenance of family.
4 For supplementing pension/other income.
5 Repayment of an existing loan taken for the residential property to be mortgaged.
3
6 Meeting any other genuine need.

02
7 Use of RML for speculative, trading and business purposes shall not be permitted.
Purpose wise sub limits
/2
Purpose Maximum permissible limit as % of

the total eligible loan quantum
0
(a) Up gradation, renovation and extension of

/1
residential property.
(b) Repayment of an existing loan taken for the 20%
26
residential property to be mortgaged.

(c) For uses associated with home improvement,
maintenance/ insurance of residential property.
8
(d) Medical, emergency expenditure for

77
maintenance of family
Purpose Maximum permissible limit as % of the total eligible loan quantum
99
For supplementing pension / other income 80% as monthly/ quarterly Meeting any other
genuine need installments as agreed.
18.5 PERIOD OF LOAN: Maximum 15 years.
18.6 INTEREST: As advised by HO from time to time.
18.7 SECURITY:
The loan shall be secured by way of mortgage of residential property, by way of Registered
Mortgaged or equitable mortgage with memorandum of deposit of title deeds in favour of the
Bank.
Page 158 of 212

18.8 VALUATION OF RESIDENTIAL PROPERTY:
Valuation of the property is to be done once every three years
i) Quantum of loan may undergo revisions in case there is reduction in the value of the property
based on such re-valuation of property, at the discretion of the bank.
ii) Loan instalments to be refixed keeping in view applicable ROI and valuation of property.
iii) No upward revision shall be permitted in either loan amount or periodical instalments
payable to the borrower irrespective of increase in the value of the property.
iv) The bank shall have the option to revise the periodic/lump-sum amount at such frequency
or intervals based on revaluation of property, which in any case shall be at least once every
three years.
v) If the Borrower does not accept the revised terms, no further payments will be effected by
the bank. Interest at the rate agreed before the review will continue to accrue on the
outstanding amount of the loan.
18.9 DISBURSEMENT:
Periodicity: The loan shall be extended as regular monthly/ quarterly cash advances. Option
once exercised for monthly or quarterly payment cannot be changed at a future date.
Lumpsum payment to the extent of 20 % of the loan amount arrived at. In case of periodic
PM
disbursement, the payments shall be made during the loan period of 15 years or till the death
of the surviving borrower, whichever is earlier.
The bank pay the loan proceeds directly to the borrower, except in cases pertaining to
retirement of existing debt, payments to contractor(s) for the repairs of borrower’s property,
3
or payment of property taxes or hazard insurance premiums from the borrower’s account set
:5
aside for the purpose.
In case the residential property is already mortgaged to any other institution, the bank may,
04
at its discretion, consider permitting use of part proceeds of RML to prepay/repay the
outstanding liability with that Institution. The loan amount will be paid directly to that
institution to the extent of the loan outstanding with that institution with a view to release
3
the mortgage.
02
18.10 REPAYMENT OF THE LOAN:

The loan shall become due and payable only when the last surviving borrower dies or
borrower/s would like to sell the home, or permanently moves out of the home.
/2
In case of death of one of the borrowers, the repayment will take effect after the death of
0
the surviving borrower.

/1
The entire outstanding liability including accumulated interest to be met by the proceeds
received out of sale of the mortgaged property and any surplus to be paid to the heirs.
26
The borrower(s) or his/her/their legal heir/s shall be provided with the first right to settle the
loan along with accumulated interest, without sale of property.
The repayment of the loan takes place only on the death of the surviving borrower (i.e.
8
spouse).
77
Hence, it is necessary that the spouse also shall be the joint borrower. However, where the
spouse is not alive or if the owner of the property is not married, in such cases loan can be
99
permitted in the individual name of the owner of the property.

18.11 SANCTIONING AUTHORITY: Circle Head- CAC.
As the scheme involves a lot of counselling to be done to the Senior citizen borrowers, the
scheme may be implemented through select branches in each Circle, depending upon the
potential.
18.12 REPAYMENT OF LOAN BY BORROWER(S):
The borrower(s) will have option to prepay the loan at any time during the loan tenor.
In case the prepayment is out of the borrower’s own sources no prepayment penalty shall be
levied.
Further, in case of closure of the loan either out of borrower’s own sources or by takeover by
another bank/HFI, all concessions permitted shall be recovered.
Page 159 of 212

18.13 INSPECTION OF THE PROPERTY:
Pre-sanction Inspection and Inspection report as per extant guidelines are applicable to the
scheme.
Inspection of the property to be conducted once in six months to ascertain whether any of
the occurrence listed under ‘FORECLOSURE’ have taken place.
During regular Inspection of the branch, the Inspection Officials have to Inspect all the
properties against which loan is granted under the subject scheme.
All inspection charges / other out of pocket expenses are to be recovered as and when due.
18.14 RIGHT OF RESCISSION:
After the documents have been executed and loan transaction finalized, Senior Citizen
borrowers shall be given up to three business days to cancel the transaction i.e., the “right
of rescission,”.
If the loan amount has been disbursed, the entire loan amount will need to be repaid by the
borrower within this three-day period without interest.
18.15 FORECLOSURE:
The loan shall be liable for foreclosure due to occurrence of the following events of default.
PM
a) If the borrower/s has not stayed in the property for a continuous period of one year.
b) If the Borrower fails to execute further documents as demanded by the bank including
acknowledgment of debt and security.
c) If the borrower(s) fail(s) to pay property taxes or maintain and repair the residential
3
property or fail(s) to keep the home insured, the Bank reserves the right to insist on repayment
:5
of loan by bringing the residential property to sale and utilizing the sale proceeds to meet the
outstanding balance of principal and interest.
04
d) If borrower(s) declare himself/herself/themselves bankrupt.
e) If the borrower/s remarry.
f) If the residential property so mortgaged to the bank is donated or abandoned by the
3
borrower(s).
g) If the borrower(s) effect changes in the residential property that affect the security of the
02
loan for the lender. For example: renting out part or all of the house; adding a new owner to
the house’s title; changing the house’s zoning classification; or creating further encumbrance
/2
on the property either by way taking out new debt against the residential property or
alienating the interest by way of a gift or will.
0
h) Due to perpetration of fraud or misrepresentation by the borrower(s).

/1
i) If the government under statutory provisions, seeks to acquire the residential property for
public use.
26
j) If the government acquires/condemns the residential property (for example, for health or
safety reasons).
18.16 COUNSELLING:
8
The Senior Citizen borrowers need to be counselled/educated on the various issues involved
77
in the scheme.
Senior Citizens and their families should be treated with special care.
99
Branch should clearly explain to the prospective borrowers the terms and conditions of RML,
the methodology followed for valuation of the residential property, the method of
determination of eligible quantum of loan, the frequency of re-valuation and review of terms
and all related aspects of the RML.
Branch to counsel the borrowers about the possible impacts to the borrowers due to adverse
movements in interest rates and property price fluctuations.
All the costs to the Borrower(s) that are associated with the transaction should be specified to
the borrower/s.
****
Page 160 of 212

19. SWARNA LOAN (PRODUCT CODE 608)
SWARNA OVERDRAFT / SWARNA EXPRESS (PRODUCT CODE 265/952)

Loans to individuals (Non-Priority) against the security of gold ornaments can be granted for
purposes such as meeting medical expenses and other unforeseen commitment / contingencies
etc.
Loans can be granted under the scheme only at designated branches identified by the Circle
Offices.
19.1 PURPOSE:
To meet medical expenses and other unforeseen commitments / contingencies and investment
purposes / domestic purposes.
19.2 ELIGIBILITY:
1 The prospective borrower should be SB account holder with satisfactory dealings. However,
the sanctioning authority may waive this stipulation provided the intending borrower is well
PM
introduced to the Bank and is credit worthy.
2 Swarna Loan can be granted at Gold Loan Plazas and all designated branches identified by
the Circle Offices.
3 Sanctioning authority should invariably take into account the income generation and
3
repayment capacity of the borrower.

:5
04
The Quantum of Finance per customer shall be fixed as below:
Minimum: Rs. 5000.
3
Maximum: Rs. 35.00 Lakh.

02
The maximum aggregate limit per customer under all the three schemes namely Swarna loan,
Swarna OD & Swarna Express shall be fixed at Rs. 35.00 Lakh.
0 /2
The overall limit that can be sanctioned to a customer under all the Gold Loan Schemes is Rs.
105 Lakh.
/1
26
19.4 SECURITY:
1. Against the pledge of gold ornaments / jewellery which are duly apprised by the jewel
8
appraiser appointed by the Bank. The loan is to be granted only against ornaments, specially
minted Gold Coins sold by Banks and not against gold coin, bullion etc.
77
2 Total weight of specially minted gold coins (sold by the Banks) should not exceed 50 grams
99
per customer.
3. Units of gold Exchange Traded Funds (ETF) and gold Mutual funds are backed by
bullion/primary gold and as such, restriction as applicable to finance against gold bullion shall
apply to advances against Gold ETF and Gold Mutual Funds also.
19.5 RATE OF ADVANCE:
SWARNA LOAN: 65% of the appraised value

SWARNA OVERDRAFT / SWARNA EXPRESS: 70% of the appraised value.
1. 75% of the appraised value (To maintain LTV ratio of 75% during the entire loan period). If
LTV ratio goes beyond 75% and required margin is not maintained at any time during the
Page 161 of 212

currency of the loan, Branches have to recover the excess loan amount or to classify the loan
as NPA as per prudential norms
2. The revision made by Gold Wing from time to time in respect of rate of advance per gram
of gold for agricultural gold loans will be automatically applicable to Swarna loans also.
19.7 REPAYMENT:
SWARNA LOAN: The entire loan is to be repaid within 12 months from the date of sanction as
a bullet payment along with interest. Interest will be accrued to the account at monthly rests
compounded, but will become due for payment along with principal only at the maturity.
SWARNA OVERDRAFT: Secured Overdraft Tenable for 2 year with Annual Review
SWARNA EXPRESS: Term loan with Bullet Repayment- 6 month Terms.
PM
Scale I, Scale II & Scale III headed Branches as well as Credit Managers/ Senior Managers in
VLB/ELB.
3
19.9 METHOD OF APPRAISAL AND MONITORING:
:5
Existing guidelines as advised under gold loan for agricultural purposes are to be adhered to.
04
SWARNA LOAN / SWARNA OVERDRAFT: 0.50% of the Loan amount (Minimum of Rs 500/- and
3
Maximum of Rs 5,000/-).
02
SWARNA EXPRESS: 50% of charges applicable to Swarna Loans

/2
All other out of pocket expenses like jewel appraisal charges etc. shall be recovered as
applicable.
0
/1
19.10 DOCUMENTATION & INSPECTION CHARGES: Nil.

26
FOLIO CHARGES : Swarna over draft :- Rs 40 for 100 entries.
APPRAISER CHARGES:
8
SWARNA OVERDRAFT/SWARNA EXPRESS:

77
Up to Rs.5 Lakh: 50 paisa per Rs.100/- Maximum Rs.200/-

Above Rs.5 Lakh to 20 Lakh: 50 paisa per Rs.100/- Maximum Rs.300/-
99
Above Rs.20 Lakh: 50 paisa per Rs.100/- Maximum Rs.500/-

NF-1009- Application cum letter of pledge for Swarna Loan against Gold Jewellery.
ADDITIONAL POINTS FOR SWARNA OVERDRAFT:
 The review process may result in continuation of the facility or any modified limit or
cancellation of the limit / withdrawal of the facility depending upon the performance
of the borrower.
 Physical verification of Jewels pledged is to be done during annual review.
All other guidelines related to Swarna scheme are detailed in HO Cir: IC/177/2021, Gold Loan
Policy.
Page 162 of 212

All other procedures relating to appointment of jewel appraiser, appraisal / re-appraisal of

jewellery, safe-keeping, redemption, monitoring, enforcement of securities and balancing
etc., guidelines applicable in respect of gold loan for agricultural purposes are equally
applicable.
Branches to refer BPC - Manual of Instructions on Loans against Gold Jewellery and be guided
accordingly.
The lending under the segment shall be classified under non-priority.
Product Code : 608 – Swarna Loan, Swarna Overdraft: 265, Swarna Express: 952
Schedule Code: 1006 – Swarna Loan Bullet repayment, Schedule Code: 3001 – Swarna express
SWARNA OVERDRAFT:-
PM
 Multiple transactions within the limit can be allowed.
 Cheque book facility and ATM card facility to be extended to the borrowers.
 Net banking/mobile banking facility will be provided
 Transaction should not be allowed beyond the limit except for the debit of interest. No
3
ad hoc powers are to be exercised in the limit.
:5
 As far as possible part redemption should be avoided. However, in genuine cases, when
part redemptions are permitted under unavoidable circumstances it should be ensured
04
that the limit is to be reduced proportionately.
SWARNA OVERDRAFT & SWARNA EXPRESS:-

3
 An acknowledgement giving the particulars of the jewels delivered, its gross weight, net
weight and assessed value, should be got signed by the borrower in the NB 175 - Gold
02
Pledge/Redemption register.
 A note should be made in the relative Letter of Request for loan on the security of gold
/2
jewellery - application under the superscription “Part Deliveries of Securities Pledged”

duly signed by the borrower and initialed by the Manager with date.
0
 The particulars of jewellery partly released, are to be noted in the Double Lock
/1
(Movement) Register.
 The balance of security and value are to be noted in the Gold Loan Ledger after such
26
delivery.
 The above should be verified and authenticated by the Supervisor.
 It is desirable to extend SWARNA OVERDRAFT to those borrowers who need credit facility
8
throughout the year.

77
19.14 REPORTING:
99
Performance under disbursement and outstanding should be included in PSR 71 and overdues
and irregular accounts in SMA.
*****
Page 163 of 212

20. CANARA CASH (PRODUCT CODE - 602)
Loans / Advances may be considered against shares / debentures held in demat form. The
depository system also provides for Noting of lien on pledge of shares and therefore quite
advantageous to the lending Banker. As per extant guidelines (credit policy) branches can
extend loans against shares to individuals with the following ceiling:
Loans against shares which are in demat form Rs.20 lakh.
Branches should NOT lend against shares which are not in demat form.
20.1 PURPOSE:
a) Loans / advances to individuals against approved shares / debentures / bonds / approved

units of mutual funds.
b) To meet investment / domestic / personal requirement. It should be ensured that loan
should not be utilized for speculative purposes.
PM
Lending against prime security of shares and debentures is restricted to designated branches
only.
20.2 ELIGIBILITY:
3
:5
20.2.1 Loans / advances may be sanctioned to our existing customers whose dealings are
satisfactory.
04
20.2.2 In respect of new customers, branches should ensure that the customers are well
introduced / credit worthy and respectable.
20.2.3 Branches should exercise required precaution to ensure that the finance is made against
3
genuine scrips / bonds / certificates only.

02
20.2.4 Loans / advances should be granted only against the shares / debentures, bonds, units
of UTI and Canara Robeco, which are in the approved list advised from time to time.
20.2.5 Loan against units relating to equity plan scheme of Canara Robeco, UTI etc., is not
/2
permissible as loans cannot be granted under tax savings schemes i.e. units issued by Mutual
0
Funds relating to tax saving equity plans are not to be treated as approved securities for the
purpose of considering loans/ advances since they are not traded/ listed in the stock
/1
exchanges.
20.2.6 The loan shall be considered against the security of demat shares.
26
20.2.7 Employees of our Bank are not eligible for loan under this scheme.
20.2.8 In respect of loan to the spouse of our employee, working in another organization, the
co-obligation/ guarantee of our employee concerned may be obtained. All such loans to the
8
close relatives of the employees should be permitted by the next higher sanctioning authority.
77

99
Maximum loan quantum is Rs.20 Lakh wherever DEMAT accounts are maintained at our DPs.
20.4 MARGIN:
On approved shares/ debentures /bonds Shares & Debentures- 50% of market value PSU Bonds-
30% of market value On approved units of UTI / Canara Robeco 50% of NAV/ repurchase price
or the market value, whichever is lower
20.5 RATE OF INTEREST: As advised by HO time to time.
Page 164 of 212

20.6 REPAYMENT:As far as possible, for better monitoring, the facility should be by way of
single transaction loan only, repayable in less than 60 months. Repayment can be fixed by way
of EMI also. However, there is no bar / embargo for granting OD facility under this scheme.
20.7 SECURITY:
20.7.1 Security of the shares / debentures / bonds and units of UTI and Canara Robeco as per
the approved list circulated from time to time.
20.7.2 Loan under Canara Cash scheme can also be granted against the aforesaid approved
securities standing in the name of close relatives of the borrower. In such cases, the
coobligation / guarantee of the person in whose name the shares/securities are held should
be obtained.
20.7.3 SUBSTITUTION AND RELEASE OF SECURITIES:

i. During the currency of the loan / limit, part release / substitution of securities should not
be permitted for more than 10 occasions. For every substitution / release, a fee of Rs.100/-
PM
should be collected. Such substitution of shares / debentures / bonds may be permitted by
the branch-in-charge subject to the following conditions:
ii. While permitting part release / substitution of securities, the branch-in-charge has
to ensure that the liability outstanding therein is within the drawing power after maintaining
3
the requisite margin on the revised securities pledged to the Bank.
:5
iii. Securities substituted should be only from out of Bank’s latest list of approved securities
04
issued from time to time.
iv. Proper acknowledgement should be obtained from the borrower for the shares / debentures
/ bonds released to him / her, which are in physical form. In respect of those in demat form,
3
the guidelines as per BPC-MOI on VSL should be followed. In respect of those in demat form,
02
the guidelines as per BPC-MOI on VSL should be followed.
v. If substitution in securities is permitted in respect of borrowal accounts falling beyond the

/2
powers of the branch-in-charge, a post facto report with full details should be sent to the
sanctioning authority concerned on the very day of according permission for information and
0
records.
/1
20.8.GUARANTEE/ CO-OBLIGATION:
26
Sanctioning authority may stipulate third party guarantee / co-obligation depending upon the
quantum of loan and standing of the borrower.
8
However, third party guarantee / co-obligation may be waived by the respective sanctioning
77
authority.
99
20.9 DOCUMENTATION:
20.9.1: WHERE SHARES / DEBENTURES / BONDS STAND IN THE NAME OF THE BORROWER
20.9.2: LOANS:
i. Application for Loans / Advances against shares / debentures NF 972
ii. Letter of request for Loans / Advances against Shares/Debentures (to be executed by both
borrower & coobligant) NF 971
iii. Credit Report Cum Rating sheet NF 990
iv. Guarantee NF 370
v. Guarantee covering letter NF 371
20.9.3 OVERDRAFT:
Page 165 of 212

All the documents applicable for loans as above and Appropriate CASA opening form,
constitution letter and specimen signature card (to be obtained from the borrower). Other
documents as mentioned hereunder:
When the securities are in joint names, the loan should be in the joint names and both the
joint holders have to sign the loan papers. In exceptional cases if the loans are granted in the
name of one of the borrowers, a letter of authority as per APPENDIX-4 with suitable changes
based on the nature of the security should be obtained from the other joint holder and NF 971
– Letter of request for loans / advances against Shares / Debentures should be signed by both
the joint holders.
All the procedural guidelines relating to pledge of shares, noting of the lien with the DP,
enforcement of the securities by invocation of the pledge and closure of pledge on clearance
of dues of the bank as specified in BPC- Manual of Instructions on Loans against Valuable
Securities – Chapter on loans / advances against shares and Debentures shall be followed.
20.10 LOANS / OVERDRAFTS AGAINST SHARES / DEBENTURES IN THE NAME OF THE

THIRD PARTY:
PM
20.10.1 LOANS:
a. Letter of request for Loans / Advances against Shares/Debentures (to be executed
by both security Holder & Borrower): NF 971*.
b. Application for loans / advances against third party securities: NF 887.
3
c. Credit Report Cum Rating sheet NF 990.
d. Guarantee NF 370.
:5
04
e. Guarantee covering letter NF 371.
20.10.2 OVERDRAFT:
3
All the documents applicable for loans as above and Appropriate CASA opening form,
02
constitution letter and specimen signature card (to be obtained from the borrower).
/2
20.11 ADDITIONAL DOCUMENTS TO BE OBTAINED / PRECAUTIONS TO BE TAKEN /

0
ADHERED TO IN CASE OF LOANS / OVERDRAFTS:

/1
20.11.1 As per the existing RBI guidelines the maximum loans / advances that can be
permitted against the security of the shares will be Rs.20 lakh from the Banking Industry.
26
Therefore a declaration is to be obtained from the borrower that the aggregate credit facilities
availed by the borrower from the Banking Industry is not more than Rs.20 lakh. The details of
the existing facilities to be obtained along with the declaration.
8
20.11.2 Normally loans/advance against the security of shares which are not in demat form
77
should be avoided. Wherever such loans are granted against shares / debentures in physical
form, the following precautions to be taken:
99
a) Share certificates / debenture / bonds accepted as security should be taken and lodged
along with the loan papers.
b) Sufficient number of blank undated share transfer forms in the prescribed form should be
obtained in such a way so as to enable splitting up of shares in convenient lots wherever
required. So to say, for shares of a particular company, there should be minimum one deed.
If the numbers of shares of the company are more than one marketable lot, then adequate
number of such blank transfer deeds should be obtained. These forms should be duly signed
by the share holder and witnessed by a respectable person.
c) A declaration and undertaking letter to be obtained from the borrower as per Appendix-18
of Manual of Instructions on Loans against Valuable Securities.
d) Notice from the share holder to the company for noting the lien on shares to be obtained in
duplicate in NF.574.
Page 166 of 212

e) Copy of notice of lien by Bank in NF.498 should be sent to the concerned company along
with NF.574 by Registered post AD. Copies of NF.574 and NF.498 along with AD card should be
kept with loan papers. All correspondence received from the company regarding the lien
notices should also be kept with the loan papers.
f) Whenever advance limit enjoyed by the borrower exceeds Rs.20 lakh, shares / debentures
are to be got transferred in the name of the bank irrespective of the security is taken.
g) Letter as per Appendix-26 of BPC - Manual of Instructions on Loans against Valuable
Securities is to be sent to the company for cancellation of Bank’s lien.
h) Wherever applicable, a declaration under Sec.187(c) of Companies Act 1956 as given in
Appendix-23 of BPC - Manual of Instructions on Loans against Valuable Securities should be
filed with the Registered Office of the Company within 30 days from the date of registration
of the Bank’s name. However, for the sake of convenience, the declaration should be sent
along with the share transfer form retaining the third copy of declaration with the loan papers.
i) In respect of convertible debentures the following additional documents as
mentioned against each should be obtained
a. In respect of bonds where conversion is not automatic:
PM
1. Letter of Authority as per APPENDIX-7
b. For bonds where the conversion is automatic

1. Letter of Authority as per APPENDIX-8
3
:5
Note:
a. Wherever retransfer of share is to be effected, similar stamp duty is to be affixed.
04
b. Whenever part release / substitution of shares / debentures / bonds / units of mutual funds
pledged to the Bank is permitted, link letter is to be obtained and kept along with the loan
papers obtained at the time of grant / release of the loan / advances.
3
c. For units of Mutual Funds, documentation is as applicable to loans / advances against shares
02
/ debentures.
d. Letter to be obtained from the borrower in NF.850 where substitution of shares / debentures
is sought.
/2

0
(Rs. In Lakh)
/1

Branches headed by Scale I, Branches 3
26
headed by Scale II), Credit Manager in

VLB/ELB
Branches headed by Scale III/Senior Manager 5
8
in VLBs/ ELBs
77
Chief Manager of branch 7

AGM–Branch/AGM-RO-CAC/ AGM-CO-CAC 10
99
DGM Branch/ DGM-RO-CAC /DGM-CO-CAC 20

CGM/GM-CO-CAC 20
Sanctioning second loan to the same borrower, in case of Canara Cash loan during the currency
of the existing loan can be considered subject to the branch being fully satisfied about the
Creditworthiness and the repayment capacity of the borrower and such proposals being
referred to the next higher authority at the concerned CO as the case may be for sanction.
Designated branches / offices may consider loans / advances against aforesaid approved
security subject to various RBI guidelines communicated from time to time within their normal
delegated powers as per guidelines on delegation of powers.
Page 167 of 212

0.1% on the loan amount with a minimum of Rs.100/- and maximum of Rs.250/-.
In case of OD facility, charges as above are to be collected for every renewal / enhancement.
If the enhancement in the limit is between two renewals, processing charges as above is to be
collected for enhanced amount only. Where the enhancement is with renewal, processing
charges to be collected on the entire amount.
20.13.1. DOCUMENTATION & INSPECTION CHARGES: Nil.
20.14 GRANT OF SECOND LOAN DURING THE PENDENCY OF THE FIRST LOAN:
1 Sanctioning a second loan to the same borrower during the currency of the existing
loan can be considered subject to the branch being fully satisfied about the creditworthiness
and repayment capacity of the borrower and such proposals being referred to the next higher
authority at the concerned CO for sanction.
2 All other procedures / guidelines relating to dematerialization of shares, monitoring and
PM
follow-up, reporting etc., guidelines detailed under BPC- Manual of Instructions on Loans
against Valuable Securities are to be adhered to.
3
:5
20.15 GUIDELINES FOR EXTENDING LOANS/ADVANCES AGAINST UNITS OF DEBT ORIENTED
MUTUAL FUND SCHEMES
04
20.15.1 PURPOSE:
To meet genuine needs of the borrower and not for speculation.
3
02
20.15.2 ELIGIBILITY:
All individuals who are holding the units singly and / or jointly, units in the name of
/2
Proprietorship and partnership firms.

0
20.15.3 ELIGIBLE DEBT ORIENTED MUTUAL FUNDS SCHEMES:

/1
Units of debt oriented mutual funds floated by Canara Robeco, UTI MF, Mutual Funds
26
sponsored by SBI group / Nationalized Banks, LIC, GIC, ICICI and NBFCs subject to:
 The units should be listed/traded in the stock exchange.

8
 They should have completed the minimum lock-in-period stipulated in the relevant
77
scheme.
 The amount to be advanced should be linked to the net asset value or the market value
99
whichever is less.
 Loans/advances under this segment is outside the purview of Capital market exposure.
 As advances under this scheme is treated as advances against approved securities
these are not to be reported under Capital market exposure.
20.15.4 QUANTUM OF LOAN:
75% of the net asset value or market value whichever is less subject to maximum of Rs. 10
lakh.
20.15.6 MARGIN: 25%.

20.15.7 RATE OF INTEREST: As advised by HO from time to time.
Page 168 of 212

20.15.8 SECURITY:
Unit certificate of Debt oriented mutual funds scheme with lien noted with the respective
mutual fund.
20.15.9 REPAYMENT:
Loan repayable in 24 equated monthly instalments (EMIs) commencing from one month from
the date of disbursement.
20.15.10 SANCTIONING AUTHORITY:

As applicable to loans/advances against approved securities i.e. units issued by approved
mutual funds.
20.15.11 REPORTING / REVIEW:

The irregular accounts shall be reported in the respective review return/ SWL periodically.
20.15.12 GENERAL GUIDELINES:

All other guidelines as applicable to loans / advances against the units of mutual funds are to
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be followed.
20.16 GRANTING LOANS / ADVANCES AGAINST THE SECURITY OF DEBT ORIENTED MUTUAL
FUNDS SCHEMES:
3
:5
20.16.1 The units floated by Canara Robeco, UTI Mutual Fund, Mutual Funds sponsored by SBI,
its associates/nationalized banks, Mutual Funds sponsored by NBFCs in public sector and Mutual
04
funds sponsored by LIC, GIC, ICICI can be accepted as approved security for the purpose of
extending loans / advances. The maximum limit permissible is Rs.10 Lakh.
3
20.16.2 In this regard, RBI has advised that the loans and advances against the units of
02
exclusively Debt Oriented Mutual Funds would not form part of the Bank’s exposure to Capital
market.
/2
20.16.3 It is informed that all mutual funds are issuing only a statement of accounts giving the
0
number of units held. Bank’s lien cannot be noted on the statement. Therefore, customers
have to apply for physical certificate/s and only after getting the lien noted with the
/1
respective mutual fund/s, loan/s can be granted. The physical certificate shall be lodged with
the loan papers. These guidelines are also applicable to loans / advances against the security
26
of equity oriented units floated by mutual funds as

mentioned as above.
8
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Page 169 of 212

21. ESOP SCHEME (PRODUCT CODE-617)
Loan scheme to assist employees to buy shares of their own Companies under EMPLOYEES’
STOCK OPTION PLAN (ESOP).
This Scheme should be implemented only in select branches designated by the Circles.
21.1 PURPOSE:
Loan scheme to employees of the company to purchase shares of their own company under
ESOP scheme.
21.2 ELIGIBILITY:
1. The employee should be confirmed in the services of the company.
2. The share shall be fully paid on allotment. Partly paid shares are not eligible for finance.
3. The application for shares should be in the individual name of the employee.
4. The concerned employee should have a demat account.
5. The net take home pay of the applicant shall not be less than 25% of the gross salary after
all deductions including the EMI of the proposed loan.
PM
21.3 QUANTUM OF LOAN & MARGIN:
a. 90% of the purchase price of shares subject to a maximum of 10 months’ gross salary. The
3
maximum amount of loan/exposure not to exceed Rs.20 lakh.
:5
b. If the applicant has already availed any other kind of loan/s against the primary security of
shares, then, the aggregate loan quantum including the loan under the proposed scheme
04
should not exceed Rs.20 lakh.
c. Margin amount of 10% to be brought in by the applicant before grant of loan.
3
21.4 NATURE OF LOAN:

02
Short term loan (secured) – ESOP.

/2
As Advised by H.O. from time to time. Any proposal for reduction in the rate of interest may
0
be taken up with the appropriate authority.

/1
21.6 SECURITY: Pledge of allotted shares.

26
21.7 DISBURSEMENT:
1. DD for full amount of the share application should be remitted by debiting the loan account
of the applicant and after recovering the required margin from the party’s account. No DD
8
commission need be collected for remitting the loan proceeds.

77
2. The branch shall ensure to send the related share application along with the DD in time to
99
the concerned company/bank designated for the purpose of receipt of share application. The
acknowledgement/receipt received from the company/Bank shall be preserved with the loan
papers. The DD and the related share application should not be handed over to the applicant
under any circumstances.
21.8 REPAYMENT:
a. To be cleared within 35 months by way of EMI.
b. The first of such EMI shall commence from the salary payable for the month succeeding the
month of disbursement of loan.
c. The employees will have to execute a mandate in favour of the Bank for recovery of loan
instalments from the employers. Such mandate should be got registered with the employers
and should be held in the branch along with other loan papers.
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d. In case of default by the employee in order to enable the Bank to clear / recover the loan,
the procedural guidelines laid down in the BPC Manual of Instructions on VSL shall be followed.
e. There is a lock in period of 3 years. In case of any default during this period the Bank cannot
dispose off / sell the shares. Hence, the branch has to closely monitor the account and ensure
prompt recovery of loan instalments, so that the slippage of account to NPA is avoided.
The Branch Head of the designated branches (designated by the Circles) are delegated with
powers to sanction loans under this scheme within their respective delegated powers. Any
proposal beyond their delegated powers shall be taken up with the next appropriate
sanctioning authority. The maximum permissible amount under this scheme is Rs.20 lakh.
However, the aggregate of all other loans against security of shares including the proposed
loan shall not exceed Rs.20 lakh.
21.10 PROCESSING CHARGES: 0.50% of the Loan amount with minimum of Rs 500.
PM
21.12 INSPECTION CHARGES: Nil.
21.13 GENERAL TERMS & CONDITIONS:
3
a. This scheme should be implemented only in select branches designated by the circles for
this specific purpose.
:5
b. The finance under this scheme should be extended only in respect of those shares which
04
are in our Bank’s approved list.
c. As share applications are to be sent by the branch granting the loan, such branches will have
to ensure proper and complete filling up of application forms, demat account details, bank
3
account details etc. Share applications with DD are not to be handed over to customers.
02
d. All other guidelines as applicable for loans/advances against the security of shares /
debentures are to be followed.
/2
21.14 REPORTING SYSTEM:

0
1. The loans granted under the subject scheme should be treated as “Retail Lending Scheme”
and accordingly the same should be reported in the related PSR statements (PSR 71) as ESOP.
/1
2. Branches should submit the Periodical Review Return as applicable to the Canara Cash
scheme under separate head ESOP.
26
3. The loans will be included for reckoning Capital Market exposures and the Bank will ensure
compliance with prudential limits prescribed by the Reserve Bank (DBOD) from time to time,
for such exposure to Capital Market.
8
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Page 171 of 212

22 .ESOP- NRI EMPLOYEES’ SCHEME (PRODUCT CODE-617)
Loan scheme to assist Non Resident Indian (NRI) employees of Indian Companies to buy the
This scheme should be implemented only in select branches designated by the Circles.
22.1 PURPOSE:
To grant Rupee loan scheme to confirmed NRI employees of Indian companies to purchase
22.2 ELIGIBILITY:
a. The shares shall be fully paid on allotment. Partly paid shares are not eligible for finance.
b. The application for shares shall be in the individual name of the NRI employee.
c. The concerned NRI employee must have a demat account.
d. The net take home pay of the applicant shall not be less than 25% of the gross salary after
all deductions including the EMI of the proposed loan.
PM
22.3 QUANTUM OF LOAN & MARGIN:
a. 90% of the purchase price of shares subject to a maximum of 10months’ gross salary.
3
b. The maximum amount of loan / exposure to the individual borrower not to exceed Rs.20
lakh.
:5
c. If the applicant has already availed any other kind of loan/s against the primary security of
04
shares, then, the aggregate loan quantum including the loan under this scheme shall not
exceed Rs.20 lakh.
d. Margin amount of 10% to be brought in by the applicant before grant of loan.
3
02
22.4 NATURE OF LOAN: Short term loan (secured) –ESOP (NRIs.)

0 /2
22.6 SECURITY: Pledge of allotted shares.

/1
22.7 DISBURSEMENT:
a) DD for full amount of the share application shall be made on debiting the loan account of
26
the applicant and on recovering the required margin from the borrower’s account. The branch
to remit the total proceeds directly to the company concerned. The loan proceeds should not
be credited to the borrowers’ non-resident accounts in India under any circumstances.
8
Appropriate DD commission need be collected for remitting the loan proceeds.

77
b) The branch shall ensure sending the related share application along with the DD drawn
99
appropriately and in time to the concerned company/bank designated for the purpose of
receipt of share application. The acknowledgement / receipt received from the company/
Bank shall be preserved with the loan papers. The DD and the related share application should
not be handed over to the applicant under any circumstances.
22.8 REPAYMENT:
a. To be cleared within 35 months by way of EMIs.
b. The loan amount shall be repaid by the borrower by way of inward remittances or by debit
to his NRO/NRE/FCNR(B) account.
c. In case, during the pendency of the loan, the borrower becomes a resident, then the
outstanding loan can be cleared out of local funds held by the borrower.
d. In case of default by the borrower, to enable the Bank to clear / recover the loan, the
procedural guidelines laid down in the Manual of Instructions on VSL shall be followed.
Page 172 of 212

The Branch Head of the designated branches (designated by the Circles) are delegated with
powers to sanction loans under this scheme within their respective delegated powers for grant
of such loans. Any proposal beyond their delegated powers shall be taken up with the
appropriate sanctioning authority. The maximum permissible amount under this scheme is
Rs.20 lakh.
However, the aggregate of all other loans against security of shares including the proposed
loan shall not exceed Rs.20 lakh.

0.50% of the Loan amount with minimum of Rs 500.

(Actual documentation charges/ out of pocket expenses incurred by the branch to be
collected).
22.12 GENERAL TERMS & CONDITIONS:
PM
a. This scheme shall be in select branches designated by the Circles for this specific purpose.
b. The finance under this scheme shall be extended only against those shares which are in our
Bank’s approved list.
c. As share applications are to be sent by the branch granting the loan, such branches will have
3
to ensure proper and complete filling up of application forms, demat account details, bank
:5
account details etc. Share applications with DD are not to be handed over to the borrower
customers.
04
d. With regard to creation of pledge of shares and sale of same in case of default by the
borrower, the branches shall follow the guidelines laid down in the Manual of Instructions on
VSL.
3
e. There will be a lock-in period of 3 years. In case of any default during this period, the Bank
cannot dispose off / sell the shares. Hence, branches have to monitor the account closely and
02
ensure prompt recovery of the loan instalments so that slippage of the account to NPA is
avoided.
/2
All other guidelines as applicable for loans/advances against the security of shares /
debentures are to be followed.
0
/1
22.13 REPORTING SYSTEM:

a) The loans granted under the subject scheme shall be treated as “Retail Lending Scheme”
26
and accordingly the same shall be reported in the related PSR 71 as DPN – ESOP (NRIs).
b) Branches shall submit the Periodical Review Return as applicable to the Canara Cash scheme
under separate head DPN – ESOP (NRIs).
8
c) The loans will be included for reckoning Capital Market exposures and the Bank will ensure
77
compliance with prudential limits prescribed by the Reserve Bank (DBOD) from time to time,
for such exposure to Capital Market.
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Page 173 of 212

23. DIFFERENTIAL RATE OF INTEREST SCHEME ((D R I SCHEME)-PRODUCT CODE 685)
23.1 SCOPE & COVERAGE:

DRI Scheme was introduced in 1972 on selective basis and operated upon in only 163 districts
at the first instance. However, during 1977, area of operation of the scheme was extended
throughout the country, to improve the economic status of
a) weaker sections;
b) down-trodden people;
c) other less fortunate people.
Following targets have been fixed to the financing banks with limits and sub-limits:
i) 1% of previous year’s Gross bank credit.
ii) Not less than 2/3rd of DRI advances are to be routed through rural and semi-urban branches,
and the balance 1/3 to be routed through urban and metropolitan branches.
iii) Not less than 40% of the total DRI advances of the Bank should flow to the eligible borrowers
belonging to SCs/STs.
PM
The DRI scheme is basically meant to cater to the requirements of weakest among the weaker
sections, to help them in their efforts to better their economic conditions through small
productive ventures. Therefore, it should be our endeavour to identify these borrowers, assess
3
their requirements and ensure end use of credit provided.
23.2 OPERATION OF THE SCHEME:

:5
04
1 Public Sector Banks: The scheme of DRI will be operated by all the public sector banks.
2 Non-Nationalised Banks: Non-nationalised Banks having lead responsibilities will operate
3
the scheme at least in the lead districts. Other non-nationalised banks may also implement
02
the scheme on voluntary basis.

3 Regional Rural Banks: As these Banks are not permitted to advance credit at concessional
rate of interest, the sponsoring banks may lend through RRBs on an agency basis. Hence, the
/2
benefit of DRI rate of interest is passed on to the borrowers served by these RRBs in their
operating areas. In other words, RRBs cannot finance under DRI on their own.
0
/1
23.3 ELIGIBILITY CRITERIA:

(Each family should be treated as an unit).
26
1. For determining income criteria, family income of the borrower from all sources, should not
exceed Rs.24,000/- per annum in urban and semi-urban areas, Rs.18000/- per annum in rural
areas.
8
77
2. Certificate or proof not necessary:

A borrower need not produce documentary evidence to establish his eligibility under the
scheme, such as income certificate, caste certificate etc. Officials at the branch level, with
99
local enquiries, should before sanctioning the loan, converse with economic and other
circumstances of the borrower to decide about the eligibility.
3. The borrower need not own any land or the size of land holdings should not exceed
one acre in case of irrigated land and 2.5 acres in the case of unirrigated land.
Exceptions:
1. Members of the scheduled castes and scheduled tribes are eligible for the loan irrespective
of their land holdings provided they satisfy income criteria.
2. No liability should be outstanding under any loan granted to the borrower at the time
of grant of DRI loan.
3. Borrower should not have been identified / sanctioned loan with any of the government
sponsored schemes where SUBSIDY is made available.
4. Borrower should work on his own or with the assistance of his family members. Under
Page 174 of 212

any circumstances, he should not appoint paid employee on regular basis for conduct of
business for which loan is sanctioned.
5. For Education Loan under DRI, he should have complied with all the rules governing
education loan scheme, such as marks to be scored etc.
23.4 ELIGIBLE PERSONS & CATEGORY OF LOAN:
1. Scheduled tribes, scheduled castes and others engaged on a very modest scale in agriculture
or allied agricultural activities.
2. People who themselves collect and/or do elementary processing of forest products and
people who themselves collect fodder in different areas and sell them to farmers and traders.
3. People physically engaged on modest scale in the fields of cottage and rural industries
and vocation in urban areas.
Example: Cutting clothes, sewing garments, making reasonably cheap articles, home delivery
service of articles and commodities of daily use, running way- side tea stalls, owned rickshaw
pullers and cycle rickshaws, repairing of shoes, sandals mainly by hand, basket making by hand
etc., or any other activities that can help the borrower rise above his present economic level
PM
through productive ventures, which are economically viable.
4. Physically handicapped persons including mentally retarded and blind persons, who
are pursuing gainful occupation.
3
5. Branches can assist the handicapped for acquiring aids, appliances and equipments (needed
:5
especially by students for pursuing studies and vocational training etc., braille typewriters for
the blind) to the extent of their actual cost but not exceeding Rs.5000/- under DRI scheme.
04
The assistance so given is independent of productive loan limit of Rs.15000/- eligible under
the scheme.
However, the loan granted as above for appliances, etc., should be along with advance for
3
productive activities and self-employment venture, with all other terms and conditions of the
02
scheme.
6. Under no circumstances a beneficiary once assisted under a Subsidy linked Govt. sponsored
programme should be assisted under the same programme or other similar subsidy linked
/2
programmes like SGSY, PMEGP etc. Further, some of the schemes provide that even after the
0
project financing is over and the family has crossed the poverty line, the Bank should continue
to make finance available to the family for the purpose of expansion or working capital. In all
/1
such cases and other cases where there is a request for further financing, the branch should
examine each of such requests individually and extend financial assistance wherever
26
considered necessary under normal terms and conditions of lending. The same is also
applicable in case of the assisted beneficiaries who have failed to cross the poverty line for
various genuine reasons.
8
7. This applies to advances granted to beneficiaries under DRI scheme which is also a
77
Government sponsored programme aimed at poverty alleviation. However, SC/ST beneficiary

availing Housing Finance upto Rs.20,000/- under DRI scheme may continue to be considered
99
for assistance or under any Government Sponsored Scheme according to their eligibility under
the respective schemes.
23.5 HOUSING FINANCE UNDER DRI:
Under DRI scheme, housing loans including loans for repairs to damaged houses could be
granted only to the members of SC/ST who fulfil DRI income criteria subject to the following:
23.5.1. The beneficiary satisfies the income criteria stipulated under the DRI scheme.
23.5.2. The assistance towards house repairs does not exceed Rs.20,000/- and
23.5.3. The housing loan granted as per Clauses 23.5.1 and 23.5.2 above have been reckoned
as assistance extended under DRI scheme only once. In other words, a beneficiary who has
Page 175 of 212

availed housing loan under DRI scheme earlier, will not be eligible for a second loan either for
housing or for repairs to house even if he may have repaid the earlier loan sanctioned to him.
23.6 ELIGIBLE INSTITUTIONS / INDIRECT FINANCE:
1. Orphanages and Women’s Home where saleable goods are made and for which no adequate
and dependable sources of financing, endowments or regular charities exist.
2. Institutions for physically handicapped persons pursuing gainful occupation where some
durable equipment’s and / or continuous supply of raw material is useful for productive
ventures.
3. Eligible State owned Corporations and co-operative societies.
4. State Corporation for Scheduled Castes and Scheduled Tribes
5. Co-operative societies and Large sized Multi-purpose Societies (LAMPS).
6. State Corporation for Minorities.
Note:
1. SFSCS are not eligible under the scheme.
2. Housing finance upto Rs.20,000/- @ 4% to SC/ST are to be treated under DRI scheme,
PM
provided the concerned borrowers fulfil the income criteria under DRI.
3. Institutions mentioned above are exempted from income and land holding criteria.
23.7 CONDITIONS FOR INDIRECT FINANCING INSTITUTIONS / CORPORATIONS / LAMPS /
3
SOCIETIES:
:5
1. Institutions should utilise the funds for productive purposes only and not for meeting their
normal administrative and establishment expenses.
04
2. Genuineness of these institutions should be proved, as these institutions are invariably
registered societies, where State Government and local administration have information about
them.
3
3. The maximum amount of borrowing for such institutions has to be calculated, so that
02
assistance per beneficiary does not exceed the ceiling fixed for individuals.
4. Whenever the credit is routed through the state corporations for the welfare of SCs/STs, all
terms and conditions / eligibility criteria applicable to DRI should be satisfied by individual
/2
beneficiary.
0
5. Finance to the corporation is made available only against specific and commercially viable
schemes formulated by them.
/1
6. Loans to the final beneficiary should be @ 4% rate of interest only.

7. Corporation will be responsible for repayment of the loan irrespective of the state of
26
recovery from the beneficiaries.

8. It is the responsibility of the Corporation to ensure end utilisation.
9. Expenses for running the Corporation’s establishment should be borne by State Government.
8
Hence no service charges should be levied to the final beneficiary.

77
10. Bank has the right to forfeit further finance in the case of violation of any terms.
99

1. For all types of loans maximum amount will be Rs.15,000/- without making any distinction
between working capital and term loans. In other words, a loanee can be given Rs.15,000/-
for working capital only or term loan only.
(Note: Ceiling is applicable per member and not family as a unit. However, for arriving at
income ceiling, income of all the members of the family should be taken into account).
2. Loans for physically handicapped: Please refer Clauses 28.4.4 of this chapter for details.
3. Loan ceiling of Rs.15,000/- is not applicable for Education loan, wherein the maximum
loan available is as prescribed in Education loan scheme.
4. In the case of Indirect Finance maximum permissible is Rs.15,000/-per ultimate borrower.
Page 176 of 212

NOTE: DRI loans to institutions eligible under the scheme involving higher quantum of loan
exceeding the normal stipulated ceiling can be considered, provided the same is sanctioned
by our Board of Directors.

1 Simple interest at 4% p.a. to be charged.
2 When the entire loan becomes overdue, the same should be compounded half yearly.
3 No penal interest to be charged either on instalment or entire principal or on accrued
interest.
23.10 MARGIN AND SECURITY:

1 No margin to be insisted.
2 No co - obligation (even if the party brings the co - obligation or margin voluntarily) should
be taken.
3 The assets purchased out of the bank loan are to be hypothecated to the Bank. The cost of
insurance of the assets so charged is to be borne by the Bank.
23.11 DISBURSEMENT:
PM
Disbursement should be made directly to the dealer. In exceptional circumstances, it can be
directly made to the borrower if the manager is satisfied of the end use.
23.12 REPAYMENT:
3
1 TERM LOAN:
:5
1.1 Repayment period should not exceed 5 years including grace period, if any, given upto a
04
maximum of 2 years.
1.2 Agricultural term loan under DRI should be repaid as per the agricultural loan scheme.
1.3 Education loan under DRI should be repaid as per education loan scheme.
3
1.4 Repayment of interest and principal should be fixed on case to case basis subject to
02
condition that borrower is left with surplus for his sustenance.
2 WORKING CAPITAL LOAN:

/2
2.1 Working capital loan or loan for seasonal agricultural operations or similar activities should
0
be repaid at the end of the season or upon harvesting/marketing of the produce.

2.2 Repayment should be worked out depending upon the nature of activity, subject to a
/1
maximum of 3 years.
2.3 Note: Above repayment schedules are made applicable for indirect finance also.
26
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77
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Page 177 of 212

24 .EDUCATIONAL LOAN (PRODUCT CODE-651/654/655/656)
24.1 OBJECTIVES OF THE SCHEME:

The Educational Loan Scheme outlined below aims at providing financial support from the
banking system to meritorious students for pursuing higher education in India and abroad. The
main emphasis is that a meritorious student, though poor, is provided with an opportunity to
pursue education with the financial support from the banking system with affordable terms
and conditions.
The scheme aims at providing financial assistance on reasonable terms to the poor and needy
meritorious students to pursue higher education including professional/technical courses.
24.1.1 STUDENT ELIGIBILITY:

Should be an Indian National.
a) NRIs can be considered if student is an Indian passport holder and they meet other
eligibility requirements.
b) OCI/PIO category (For Inland studies): Loans can be extended to non-resident Overseas
PM
Citizens in India (OCI)/ Persons of Indian Origin (PIO) for pursuing education in India
subject to Regulation 7 C of Foreign Exchange Management (Borrowing and Lending in
Rupees Regulations) 2000. {Notifications No FEMA 4/2000-RB dated 3rd May 2000 & further
amended vide Notifications No.FEMA 115/2004-RB dated 25th March 2004}.
3
c) Minor student represented by parent /guardian.
:5
d) Major student jointly with parent /guardian
e) Should have secured admission to a higher education course in recognized institutions in
04
India or Abroad through Entrance Test/ Merit Based Selection process after completion of
HSC(10 plus 2 or equivalent). It would be in order for banks to consider a meritorious
student (who qualifies for a seat under merit quota) eligible for loan under this scheme
3
even if the student chooses to pursue a course under Management Quota.

f) For admissions to higher studies in majority cases, selections are done through Entrance
02
Tests/merit based selection process. For all other courses (either Under Graduate /Post
Graduate courses) where admission is secured through entrance tests/selection process,
/2
admission letter to the course to be treated as eligibility for education loan, without
looking into marks, in the previous examination.
0
g) Where entrance test or selection purely based on marks obtained in qualifying

/1
examination, may not be the criterion for admission to some of the Post Graduate courses
or research programmes, submission of admission letter to the course to be treated as
26
eligibility for education loan, without looking into marks, in the previous examination.
h) Wherever Colleges are allowing admissions on the basis of CET, GRE, G-MAT, CAT, etc.,
admission to the College shall be the criteria for considering educational loan.
8
i) Wherever student is directly getting admission to the College without undergoing any
77
selection process, (i.e., Entrance Tests/scoring in eligibility tests/merit based selection

process) then educational loan can be considered if the Student has scored minimum 60%
marks in the previous qualifying examination in case of candidates belonging to General
99
category and 50 % in case of girl students and students from SC/ ST communities.
j) In case of Education Loan for Abroad studies, where ever Students are selected directly
tests/merit based selection process), In such cases submission of offer/invite/admission
24.1.2. Education Loan for pursuing undergraduate medical course in Foreign Medical
Institutions can be considered subject to fulfillment of all other terms and conditions
(Refer 1.1.4.3) by the student as per prevailing norms for education loan for studies
abroad. Production of eligibility Certificate from Medical Council of India has been
waived.
Page 178 of 212

24.1.3 Close relatives of our employees are also eligible for loans under the scheme both for
studies in India and studies abroad on the same terms and conditions as applicable to
others. However, employees of our Bank are not eligible for loan under the scheme
for themselves.
24.1.4 MINIMUM AND MAXIMUM AGE:
There is no specific restriction with regard to the age of the student to be eligible
for education loan.
CO-BORROWER SHIP:
- Parent will be co-borrower, both in case of minor and major students. Branches
/offices to be guided by the latest norms for Credit Information Companies (CIC)
score related guidelines.
- Where parents are not available, legally appointed guardians may be accepted
as co-borrower.
PM
- In cases of students , who are major (> 18 years of age ) and parents are not
available due to death or any other valid reason for offering joint borrower ship,
such cases have to be referred to Circle Head for necessary clearance, with joint
3
borrower ship of any other close relative of the student, acceptable to the Bank.
24.1.5 ELIGIBLE COURSES:

:5
04
24.1.6 Studies in India: Higher studies:
3
 Graduation courses: BA, B.Com., B.Sc., etc.

02
 Post Graduation courses: Masters & PhD.

 Professional courses: Engineering, Medical, Agriculture, Veterinary, Law,
Dental, Management, Computer etc.
/2
 Computer certificate courses of reputed institutes accredited to Dept. of Electronics

or institutes affiliated to university.
0
 Courses like ICWA, CA, CFA, Company Secretary (CS) etc.

/1
 Courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.

 Regular Degree/Diploma courses like Aeronautical, pilot training, shipping etc.,
26
approved by Director General of Civil Aviation/Shipping, if the course is pursued in

India.
 Courses offered in India by reputed foreign universities.
8
 Evening courses of approved institutes.

77
 Other courses leading to diploma/ degree etc. conducted by colleges/ universities

approved by UGC/ Government/ AICTE/ AIBMS/ ICMR etc.
 Courses offered by National Institutes and other reputed private institutions.
99
 Eligible Courses in reputed institutions for which Bank has extended concessions in Rate
of Interest, advised in HO Circulars from time to time.
 Courses leading to a qualification in general nursing, midwifery, auxiliary midwifery,
health visiting and public health nursing recognized by the Indian Nursing Council.
 Aviation Industry- Training for Commercial Pilot License, Degree/Diploma Courses in
Air Navigation, Aviation Meteorology, Courses for Cabin Crew and other related courses
approved by the Director General of Civil Aviation.
 Marine Engineering – Degree/Diploma courses in the field of Marine Engineering offered
by Institute of repute.
 Tourism Industry - Degree/Diploma courses in Hotel Management & Hospitality from
reputed institutes.
Page 179 of 212

 Health Care Industry - Degree/Diploma in Lab Technician Courses / Degree/Diploma in
Nursing / Pharmacy & other para medical courses leading to Degree/Diploma.
 Bio-technology & Bio-informatics - Degree/ Post Graduate Courses in Bio-
technology/Bio-informatics from reputed institutes.
 Oil Exploration - Degree / Diploma Courses on Petroleum Technology/Oil exploration
technology.
 Degree/Diploma Courses conducted by Domestic as well as Abroad Institutes within in
the defined course duration are also eligible, however the final Certificate should be
issued by Indian Institutes.
 Teachers' training courses / Nursing courses / B.ed. courses:
 Training Institutes/Colleges imparting such courses which are approved either by the
Central Government or by the State Governments.
 Such courses should lead to degree/diploma course and not to certification course.
For Reference branches/offices may visit:
http://mhrd.gov.in/technical-education-1
http://mhrd.gov.in/institutions-national-importance
PM
http://www.naac.gov.in/Universities_Colleges.asp,
http://www.nbaind.org/accreditation-status.aspx
www.ugc.ac.in,
3
www.education.nic.in,
:5
www.aicte.org.in
24.1.7 COURSES NOT ELIGIBLE FOR SANCTION OF EDUCATION LOAN UNDER IBA MODEL
04
EDUCATION LOAN SCHEME:
 Air craft maintenance engineering/Pre-sea training which are neither degree nor
3
diploma.
02
 Vocational and skill development study courses. As separate loan scheme is available
under IBA’s Skill Loan Scheme.
 Off campus courses.
0 /2
Note: Students of licensee/franchisee institutions are NOT eligible under the scheme.
/1
24.1.8 Eligible Courses for Studies abroad:

Only degree/post graduation diploma courses pursued abroad are eligible for sanction of loan
26
under the IBA Scheme viz.,

8
Graduation: For job oriented professional/ technical.

 Courses offered by reputed universities.
77
 Post graduation: MCA, MBA, MS, etc.

 Courses conducted by CIMA- London, CPA in USA etc.
99
 Regular Degree / Master degree/Post Graduate Diploma

 Degree courses like aeronautical, pilot training, shipping, etc. provided these are
recognized by competent regulatory bodies in India/abroad for the purpose of
employment in India/abroad.
 Medical Courses (Equivalent to MBBS course in India) in Foreign Universities.
 Diploma/ Certificate Courses not eligible.
 Degree/Post Graduation Diploma Courses conducted by Domestic as well as Abroad
Institutes within in the defined course duration are also eligible; however the final
Certificate should be issued by Abroad Institutes.
 Various countries have awarded different names for the various courses.
Branches/Offices shall get the required information from the Universities/Colleges to
ascertain the eligibility of the courses.
Page 180 of 212

For Reference branches/offices may visit (Indicative only):
www.webometrics.info
www.topuniversities.com
www.qs.com
24.1.9 COVERAGE OF PART-TIME COURSES, RESEARCH WORK AND JOB ORIENTED
SPECIALIZED PROGRAMS UNDER IBA’S MODEL EDUCATIONAL LOAN SCHEME:
Branches can extend education loans to students who pursue the following courses under
IBA’s revised Model Education Loan Scheme.
i. Part-time courses
ii. Research works and
iii. Job oriented specialized programs
Note: Branches can extend Education Loan to student intending to pursue employment
oriented courses like Teacher Training course and 3 year Diploma Courses in polytechnic after
completion of Tenth Standard, provided these courses are offered by approved / recognized
college / Institutions.
PM
24.1.10 DEFINITION OF MERITORIOUS STUDENTS:
a) The objective of IBA’s Revised Model Education Loan Scheme is that a Meritorious student
though poor, is provided with an opportunity to pursue education with the financial
3
support from the banking system with affordable terms and conditions. In this regard,
:5
branches are required to finance meritorious students to pursue higher education,
stipulating the following criteria to treat a student as Meritorious.
04
b) Whenever the student has obtained admission to an eligible course through a merit based
selection–he/she could be considered as a meritorious student without stipulating any
3
minimum marks criteria, Admission to professional and technical courses is through

02
common entrance test. Students who get admission through this process should be
considered meritorious without stipulating any minimum marks criteria.
/2
c) Wherever Colleges are allowing admissions on the basis of CET, GRE, G-MAT, CAT, etc.,
admission to the College shall be the criteria for considering educational loan. Wherever
0
student is directly getting admission to the College without undergoing any selection
/1
process, then educational loan can be considered with adherence to the following cut off
points.
26
For General merit students - 60%

For SC/ST students - 50%
8
For Girl students - 50%

77
d) In case of Education Loan for Abroad studies, where ever Students are selected directly
99
tests/merit based selection process), in such cases submission of offer/invite/admission

For any relaxation in the above, in deserving cases branches / RAHs may take up with the
Circles.
24.1.11 EXPENSES CONSIDERED FOR LOAN:
 Fee payable to college / school / hostel / boarding etc. (Reasonable lodging and boarding
charges will be considered in case the student chooses / is required to opt for outside
accommodation).
 Examination / Library / Laboratory fee.
 Life Insurance premium of student borrower
Page 181 of 212

 Capitation/donation shall not be financed.
 The eligible expenses considered for education loan should be based on the fee structure
as approved by the State Government or a Govt approved Regulatory Body for merit seats
in Govt Colleges / Private Self Financing Colleges, Coop. Societies and Colleges run by
Universities, as the case may be.
 Caution deposit, building fund / refundable deposit supported by Institution i.e these
expenses could be considered subject to the condition that the amount does not exceed
10% of the total tuition fees for the entire course.
 Purchase of books/ equipment/ instruments/ uniforms, Purchase of computer at
reasonable cost, if required for completion of the course, any other expense required to
complete the course - like academic and maintenance fees, study tours, project work,
thesis, exchange programme etc., (It is likely that expenditure above may not be
available in the schedule of fees and charges prescribed by the college authorities).
Therefore, a realistic assessment may be made of the requirement under these heads.
However, the maximum expenses may be capped at 20% of the total tuition fees payable
for completion of the course.
Maximum cap of 20% on expenses other than tuition fee may be relaxed on case-to-case
basis and clearance for the same shall be obtained from CGM/GM-HO-CAC as a pre
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disbursement condition based on the recommendation from Circle. (801/2021 dated
15.12.2021).
However, branches/ offices to note that in case of courses where student has secured
3
free seats i.e. no tuition fee is required to be paid by student, sanctioning authority/
:5
branches may consider reasonable amount of living expenses/other expenses while
sanctioning such loans
04
 The eligible expenses considered for education loan should be based on the fee structure
as approved by the State Government or a Govt. approved Regulatory Body for merit
3
seats in Govt. Colleges / Private Self Financing Colleges, Coop. Societies and Colleges
02
run by Universities, as the case may be.

/2
24.1.12 NORMS FOR SANCTION OF MULTIPLE LOANS TO MEMBERS OF SAME FAMILY:

0
Educational Loan is given for an individual and not for family as a unit. Hence, the restriction
/1
of two children for extending multiple loans for wards of same family has been removed.
There shall be no restriction for sanctioning educational loans for more than one child in the
26
same family, treating each case as separate for the purpose of security and other norms.
Second loan can also be given for higher studies / continuing the studies. However if the
8
amount granted including the existing loan (aggregate liability) exceeds the cut off limit for
77
obtaining security, approved security as prescribed should be obtained.

99
Branches to adhere the following while sanctioning/disbursing the second loan,
 Second loan to be opened as a separate Education loan account.

 Repayment of all such loan accounts should coincide.
 All the Education loan of the student borrower shall be aggregated to arrive at the
security/Delegation of Powers.
24.1.13 SANCTIONING EDUCATION LOANS TO STUDENTS WHO ARE PURSUING
Page 182 of 212

STUDIES IN COLLEGES/COURSES WHICH ARE NOT RECOGNIZED:
1. As per para no. 30.1.8 (iv) of Manual of Instructions on Retail Lending Schemes, Education
Loan, DPN & DIR (revised up to 31.03.2020), in respect of courses offered by reputed
Private Institutes not affiliated to any University/not autonomous, etc., permission is
given to the RAH Head/Circle Head to permit relaxation, in considering proposals for such
courses on selective basis.
2. While considering education loans for the reputed institutions as a mentioned above, the
following information may be sought.
 No. of students, who have completed the courses at the institute during last three
years.
 Course fee for different streams in the institute, which should be reasonable.
 Average salary offered to the students who have passed from the said institute during
the campus selection process.
 Year wise breakup of placement details
PM
24.1.14 QUANTUM OF FINANCE:
Need based finance subject to repaying capacity of the parents / students with required
margin.
3
:5
24.1.15 MARGIN:
Margin Domestic Abroad
04
Upto Rs.4.00 Lakh Nil Nil
Above Rs.4.00 Lakh 5% 15%
3
02
 Scholarship / assistantship to be included in margin.

 Margin to be brought in on year to year basis wherever the project cost is more than the
/2
loan sought, as and when disbursements are made on a prorata basis at the applicable
rates.
0
24.1.16 SECURITY:
/1
Scheme Slab Security

26
Vidya Sagar IBA Up to Rs.7.50  No Security.

Model Educational Lakh  Assignment of future income of the student.
loan Scheme.  Loan jointly granted to the parent / guardian and the
8
student.
 All Education Loans up to Rs.7.50 lakh are to be
77
sanctioned without stipulation of any security i.e.

without obtaining any collateral security or third-party
99
guarantee, duly ensuring that all such loans are covered

under CGFSEL (HO Cir 12/2016, 578/2020).
As per the scheme guidelines of Credit Guarantee Fund
Scheme For Education Loans (CGFSEL) w.e.f. 16.09.2015
Education Loans up to a limit of Rs 7.50 lakh sanctioned
without obtaining security are covered under the guarantee
scheme.
Above Rs.7.50  Assignment of future income of the student
Lakh  Loan jointly granted to the parent /guardian and the
student.
 Tangible collateral security to cover at least 100% of the
loan amount with stipulated margin for the type of
security as detailed in the Note below.
Page 183 of 212

Education Loan for Up to Rs.4.00  Assignment of future income of the student
Management Quota. Lakh  Loan jointly granted to the parent /guardian and the
student.
security as detailed in the Note below or third party
guarantee.
Above Rs.4.00  Assignment of future income of the student
Lakh  Loan jointly granted to the parent /guardian and the
student.
Education Loan for Up to Rs.4.00  No Security.
employed person. Lakh  Assignment of future income of the student.
 Loan to be granted to the student only.
Above Rs.4.00  Assignment of future income of the student.
Lakh  Tangible collateral security to cover at least 100% of the
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 Loan to be granted to the student only.
Vidya Sahay Upto Rs.1.00  Nil
Lakh
3
Vidya Sakthi Up to Rs.7.50  No Security.
:5
Lakh  Assignment of future income of the student.
 Loan jointly granted to the parent / guardian and the
04
student.
 All Education Loans up to Rs.7.50 lakh are to be
sanctioned without stipulation of any security i.e.
3
without obtaining any collateral security or third-party

guarantee, duly ensuring that all such loans are covered
02
under CGFSEL (HO Cir 12/2016, 578/2020).

 As per the scheme guidelines of Credit Guarantee Fund
/2
Scheme For Education Loans (CGFSEL) w.e.f.

16.09.2015 Education Loans up to a limit of Rs 7.50 lakh
0
sanctioned without obtaining security are covered

/1
under the guarantee scheme.

Vidya Turant Group A-  Assignment of future income of the student
26
Rs. 50 .00 Lakh  No Security

Group B- (Ref HO Cir IC/772/2022 DT.21.12.2022)
Rs. 40.00 Lakh
8
Group C-
77
Rs. 30.00 Lakh

NOTE:-
99
 The loan documents should be executed by the student and the parent/ guardian as joint-
borrowers. In case of married person, joint documentation of the either spouse or the
parent(s) / parents-in-law is to be obtained. However, in case of education loans to close
relatives of our employees, the employee’s co-obligation is to be obtained. Close Relatives
for Retail Lending schemes are Spouse, Father, Mother (including step-mother), Son
(including step-son), Son's Wife, Daughter (including step-daughter), Daughter's Husband,
Brother (including step-brother), Sister (including step sister).
 Grandparents are also accepted as joint borrower/s wherever the student is unable to
bring parents as a co-borrower for acceptable reasons, subject to:-
a. Proper assessment of the net worth of the grandparent to cover the loan amount and
Credit Information Report (CIR) credentials as per HO Circulars issued from time to
time.
Page 184 of 212

b. Obtention of tangible collateral security (moveable/ immoveable) with stipulated
margin to fully cover the loan amount for loans above Rs.7.50 lakh.
 The tangible collateral security can be in the form of land/ building/ Govt. securities/
Public Sector Bonds/Units of UTI, NSC, and Life Insurance Policy, gold, shares/mutual fund
units/debentures, bank deposits in the name of student / parent / guardian or any other
third party with stipulated margin for the type of security. Wherever third party securities
are obtained, extant guidelines of the Bank for obtaining such securities are to be followed.
 Wherever the land/ building is already mortgaged, the unencumbered portion can be taken
as security on second charge basis provided it covers the required loan amount.
 In case the loan is given for purchase of computer, the computer has to be hypothecated
to the Bank.
24.1.17 COVERAGE OF LIFE INSURANCE:

a. Obtention of life insurance cover is not mandatory, however it can be obtained at the
option of the student borrower in writing.
b. As per IBA guidelines insurance premium can be part of Education loan project cost.
PM
LIFE INSURANCE PREMIUM AS PART OF EL PROJECT COST:
a. Insurance to be covered up to 120% of loan amount sanctioned without any upper cap.
3
b. The premium can be included as part of the project cost of Education Loan.
:5
c. As our bank is already having arrangement with Canara HSBC Life Insurance Company
Ltd, all Life Insurance policies shall be preferably covered with them.
04
24.1.18 NATURE OF SECURITY & MARGIN:
Nature of Security Margin
3
Land NIL
02
Land and Building NIL

/2
Market Value Of Approved Shares / Debentures 50%

Market Value Of Approved Demat Shares/Bonds 50%
0
Approved Units of Mutual Funds 50% of NAV / Repurchase Purchase

/1
Govt. promissory Note / Surrender Value of LIC

Policy NIL
26
NSC / Kisan Vikas Patra (KVP) NIL

Third Party Term Deposits NIL
Gold 20% of the Appraised Value
8
77
 Wherever the land / building is already mortgaged, the same can be taken as security on
second charge basis provided adequate security cover to the extent of 100% of loan
99
amount is available.
 Agriculture lands may also be accepted as security provided the law prevailing in the state
does not prohibit accepting such security for non-agriculture purpose.
24.1.19 SANCTIONS:
In the normal course, while appraising the loan the future income/employability prospects
of the student will be looked into. However, where required, the means of parent / guardian
could also be taken into account to evaluate re-payment capability.
The loan to be sanctioned by the branch nearest to the place of residence of parents or the
branch nearest to the institution where the student has secured admission.
Page 185 of 212

The MITC (Most Important Terms and Conditions) for Education loan are as given in para
24.1.51, and the same should form part of Sanction Memorandum/Documentation.
SANCTION OF EDUCATION LOANS UP TO THE LIMIT OF Rs.7.50 LAKH AT BRANCH LEVEL AS

PER DELEGATED POWERS:
Branches/offices shall adhere the guidelines issued from time to time in this regard.
24.1.20 DELEGATION OF POWERS:

In respect of Delegation of Powers for sanctioning Education Loans, the following guidelines
are to be adhered: “For Education Loans, delegation as applicable to Term Loans shall apply
subject to guidelines issued in this regard”.
Delegation of Powers for Education Loans:-
Branches have no powers to sanction Education Loans and the following authorities shall have
the powers to sanction the education loans:
PM
-Sanctioning Powers of Education Loan to Branches stands withdrawn.
3
-All secured education loans shall be sanctioned by RAH Head & above authorities up to their
:5
respective delegated powers*. 04
-All unsecured Education Loans including Vidya Turant shall be sanctioned by Senior Manager
(Scale-III) posted at RAH / RAH Head & above authorities as per their respective delegated
powers
3
02
*Respective Delegated Powers refers the maximum delegated powers to Senior Manager (Scale
III) posted at RAH / RAH Head to sanction Education Loans shall be in line with sanctioning
/2
powers delegated to Branch-in-charge of Large branch & CM/AGM for Term Loans (presently
30 lakhs,125 lakhs & 250 lakhs respectively) subject to scheme guidelines.
0
/1
Review of sanctions:
26
i) Sanctions made upto their delegated powers by the respective sanctioning authorities to be
reviewed by the next higher authority as per Credit Review and Monitoring Policy issued for
time to time.
8
77
Loan limit sanctioned above Rs.5 lakhs to be reviewed by the next higher authority at
RO/CO/HO.
99
24.1.21 SANCTION OF EDUCATION LOAN TO STUDENTS WHOSE PARENTS / GUARDIAN ARE

IN TRANSFERABLE JOBS / RENTED ACCOMMODATION:
 An option may be given to parent / guardian of the student, who are in a transferable job
and working in Central/State Government Departments, PSUs and leading Corporates to avail
the education loan either at their place of permanent residence or at the place of work.
 Persons staying in a rented house for a minimum period of 2 years in a place without owning
a house in the present place of stay may also be treated as a permanent resident of the
place.
Page 186 of 212

24.1.22 DISPOSAL OF LOAN APPLICATIONS:
Loan applications have to be disposed of within a period of 15 days to 1 month but not
exceeding the time norms stipulated for disposing of loan applications under priority sector
lending. However Education loan application received through Jansmarth portal are to
disposed with in period of 7 days.
i) Rejection of proposals for educational loan is subject to concurrence of the next higher
authority.
ii) Rejections if any, should be supported by proper reasons and the reply for such rejections
should be informed to the applicant without causing any discomfort to the applicants.
iii) Branches/Offices shall dispose off the application within the above-defined timeline and
update the status in Vidya Lakshmi Portal link under LAPS module without fail.
iv) Branches/Offices to note that under Vidya Lakshmi Portal all status other than
“disbursed”, “closed” and “rejected” are considered as pending application and are
subject to review by DFS.
v) The rural/semi urban branches to sanction educational loans to the students residing
PM
nearest to the branch.
24.1.23 DAMODARAN COMMITTEE RECOMMENDATIONS FOR EDUCATION LOANS IN RURAL

AREAS:
3
:5
1) In tune with the Damodaran Committee Recommendations related to education loans, the
Board has approved the policy that minimum 30% of the loan accounts sanctioned should be
04
to the students coming from the rural areas. In this regard, we advise as under:
i. Circles to ensure that minimum 30% of the sanctions/ disbursement under Education loan
accounts are to be disbursed to students coming from rural areas.
3
ii. Circles should review the Education Loan portfolio periodically under
02
sanctions/disbursements and shall ensure that Board approved guidelines are complied
with.
/2
iii. Potential branches may be identified including rural branches and suitable targets shall
be fixed by the Circles in order to comply with the guidelines.
0
/1
2) SERVICE AREA APPROACH NOT APPLICABLE FOR SANCTION OF EDUCATIONAL LOANS:

As per existing guidelines, Branches / Offices are processing applications received from the
26
students, whose residence is nearest to the branch. In few States, applications received
from the students whose residence falls under the ward/villages which are allocated to the
Bank branches as per the arrangements made by Lead Banks to avoid bunching of
8
applications, are being considered.

77
3) RBI has advised that service area norms are to be followed only in the case of Government
sponsored schemes, and are not applicable for sanction of education loans.
99
Hence, Branches / RAHs are advised to consider Education Loan applications received
from students outside the service area (but within the district and nearer to his/her
residence) of the branch also, depending on the merits of the case. Loan application
should not be rejected merely for the reason that the applicant is residing in a place
outside the service area of our branch.
24.1.24 NO DUE CERTIFICATE FOR EDUCATION LOANS:
No Due Certificate should not be insisted. However, Branches may obtain a declaration /
an affidavit confirming that no loans are availed from other Banks. If co-borrower is having
overdues at the time of sanction / disbursement of education loan, such defaulter need not
Page 187 of 212

be accepted as co-borrower. However, if co-borrower/co-obligant later becomes a defaulter
after sanction of education loan, subsequent disbursements cannot be stopped.
24.1.25 DISBURSEMENT:
The loan to be disbursed in stages as per the requirement / demand directly to the
Institution / Vendors of books / equipments / instruments to the extent possible.
24.1.25.1 FOR STUDY IN INDIA:
 As far as possible, disbursement should be made directly to the College / Institution /

Hostel etc., by way of Demand Drafts / Pay Orders/ RTGS/ NEFT ( Transaction summary
of NEFT/RTGS to be generated and kept with loan papers)
 Disbursement is in stages only as per the disbursement structure.
 Cash disbursement in respect of books / stationery items is permitted (by obtaining a
declaration from the party) subject to production of original receipts / vouchers
subsequently, which should be ensured before further disbursements.
PM
 Disbursement may also exceed the amount of finance stipulated for each year, in
exceptional circumstances subject to the condition that the total loan sanctioned is within
the maximum permissible quantum, as stipulated under respective category of loan.
 Disbursement of the entire amount in one lump sum to the college directly is allowed in
3
the case of Medical, Engineering and professional courses, where payment of entire fees
:5
for the course is insisted upon, by the authorities as a rule, under exceptional cases.
 The margin may be permitted to be brought in stages to coincide with the disbursements.
04
 A certificate from College authorities, furnishing the details of assistantship received by
the student during the preceding academic year and a certificate to the effect that the
student is continuing education has to be submitted every year. Progress report shall also
3
be obtained within a reasonable period every year or on completion of the tri-semester/

02
semester.
24.1.25.2 DISBURSEMENT FOR SUBSEQUENT YEARS:

0 /2
 If a student fails in any year, loan assistance should be suspended and the same should be
resumed only after he passes in that particular class.
/1
 However, wherever carry over system or benefit of continuing education is allowed by

26
the authorities, the branches may continue to disburse the loan for the next academic year
even though the student has failed in one or two subjects.
8
24.1.25.3 DISBURSEMENT OF HOSTEL FEES:

77
Payment of hostel fees should be made directly to the hostel authorities. Reimbursement may
be considered in exceptional cases, during the current financial year. Reasonable lodging and
99
boarding charges to be considered in case the student chooses/is required to opt for outside
accommodation. In such cases, the payment towards accommodation and boarding may be
made directly to the student against production of related bills.
24.1.25.4 DISBURSEMENT FOR STUDY ABROAD:
 Disbursement should invariably be made to Universities / Colleges/Suppliers of books,

Computers, Laptops/Travel agencies, Airlines, Institutions etc., by way of Demand Drafts
/ FDD / Pay order. For any deviations the matter should be taken up with C.O. with
recommendations.
 In case release of exchange is granted by RBI upon our Bank’s repatriation guarantee,
the borrower should be instructed to effect repatriation through our Bank only.
Page 188 of 212

 A part of the loan amount may also be disbursed in India for purchase of books,
equipments etc., that are permitted to be taken along with the students.
 Release of exchange should be in conformity with FEMA guidelines.
 The admission process stipulates that VISA will be cleared only after the funds are made
available in blocked accounts. In such cases where the students are required to deposit
the loan amount in the account of a foreign bank, for issue of VISA, the same may be
permitted subject to obtention of documentary evidence for the same. However
branches/offices to ensure the following:
a) Branch/Offices may consider loan disbursement after duly completing mortgage

formalities, and ensuring documentation as applicable. However, VISA
issuance/receipt of the same is to be followed up/ensured.
b) Undertaking letter from the student is to be obtained to the effect that bank can
proceed for recovery of the amount, incase VISA is not issued.
c) Once funds are transferred to the account of foreign bank the same would be
marked as blocked. In case VISA is rejected the blocked amount will be treated as
a regular account and funds to be withdrawn to clear the loan. A letter to be
addressed to the Foreign Bank to refund the amount to our Bank in case VISA is not
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received.
 In some countries, there is no or only nominal tuition fee payable by the students.
However, the students have to bear the maintenance cost/living expenses during their
3
study period. In such cases the maintenance cost of the student for the study period
:5
should be credited upfront to a blocked account in the student’s name in a bank in
country of study. After the arrival of the students in the country abroad, that special
04
blocked account will enable the student to draw eligible living expenses during study
period.
3
24.1.26 PROVIDING TOP UP LOANS FOR STUDIES ABROAD/ INLAND (WITHIN INDIA):
02
Whenever there is depreciation under rupee in international monetary market it results in

severe strain on the students who had availed loan for studies abroad. In this backdrop, we
/2
advise the branches/offices as under:

0
a) In case of existing loans wherever project cost increases on account of Rupee

/1
depreciation, branches/RAHs may sanction additional / Top up loans, subject to

satisfying extant guidelines on loan amount, security, etc. as detailed in Para 24.1.11,
26
24.1.12, etc.
b) In case of new loans to be sanctioned, the project cost should be arrived at the current
rate, and not at the notional rates. However the sanction should clearly specify that the
8
rate existing on the date of disbursement will be applied and loan amount sanctioned
may be reduced if the Rupee appreciates.
77
Additional loans can also be granted in case of existing borrowers, to cover the entire
99
additional cost on account of Rupee depreciation provided the minimum margin of 15% is
maintained, by way of reducing the margin if the loan has been earlier sanctioned with higher
margin.
24.1.27 REIMBURSEMENT OF EXPENSES:
Reimbursement of expenses incurred during the current academic year of the course only
can be considered by the Respective Sanctioning Authority. After satisfying themselves about
the proof of payment against production of original bills / vouchers etc., without referring to
controlling authorities. This is applicable both for Inland studies as well as study abroad.
Page 189 of 212

24.1.28 LOANS TO EMPLOYED PERSONS.
The modified guidelines for sanction of Education loans to Employed persons are as under.
i. Education loans can be granted to employed persons provided the applicants do not get
salary during the period of study.
ii. Regarding the security requirement for education loans to employed persons, the same
has been revised as under.
SECURITY:
 Refer para 24.1.16
In addition to the above the following to be ensured.
i. NOC for continuation of study shall be obtained from the present employers.
ii. Loans to be considered for those courses which would help professional advancement of
the applicant.
iii. Loans can also be granted for pursuing MBA/ICWA/CA/IFCAI courses/CIMA (London) only
through correspondence, for employed persons.
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iv. Suitable repayment schedule to be fixed depending on the income level of the applicant
without giving repayment holiday for either interest/principal.
24.1.29 RATE OF INTEREST:
3
:5
Branches/offices shall adhere the latest rate of interest guidelines issued from time to time.
The rate of interest is linked to Repo Linked Lending Rate (RLLR) for loans sanctioned on or
04
after 01.10.2019. Existing Borrowers are eligible for switchover to RLLR subject to adhering
guidelines in this regard.
3
The current rate of interest as per HO:Cir.166/2020 dt.24.03.2020 and 250/2020 dt.01.04.2020
02
is as below:
Sl Particulars (applicable for both Rate of interest Concessional ROI

/2
priority and non-priority Education for Girl Students

No
0
Loans )
/1
1 Upto Rs.7.50 Lakh RLLR+2.00% 0.50%

26
2 Above Rs.7.50 Lakh RLLR+1.60% 0.50%
Note: ROI Concession for girl students is 0.50% less than the card rate.
8
77
Simple interest is to be charged during the study period and up to commencement of

repayment. However if branch receives written request from borrower for extension of
99
moratorium period before expiry of original moratorium period due to genuine reasons like un-
employment, discontinuation of education due to medical reasons or such other genuine
reasons to the satisfaction of the concerned sanctioning authority, the respective sanctioning
authority may permit extension of moratorium period for a maximum period of one year from
the date of expiry of original moratorium period and during such extended moratorium period
also, the simple interest to be charged in the loan account.
24.1.29.1 Change in applicable RoI shall be advised by HO from time to time.
24.1.29.2.The interest to be debited monthly on simple basis during the repayment holiday
period/moratorium period. After commencement of repayment the accrued interest
is to be added to the principal amount and EMIs fixed on total outstanding amount.
Page 190 of 212

24.1.29.3. 0.50% concession in interest rate shall be allowed where interest is serviced
during the study period itself in respect of loans sanctioned on or after 01.06.2004,
subject to effective interest rate falling not below the prevailing RLLR (Repo Linked
Lending Rate).
24.1.29.4 The borrower/s along with co-obligant / guarantor have to execute an undertaking
as per prescribed format, opting to service the ongoing interest during the initial
moratorium period / repayment holiday.
24.1.29.5. The interest so debited at monthly rests shall be cleared in full before the debit
of next monthly interest.
24.1.29.6 In case full interest is not cleared by the borrower before the debit of next month’s
interest, then, the 0.50 % concession shall not be extended for the current month
and normal applicable rate shall be charged.
24.1.29.7 If in an account the default in servicing interest occurs for more than 3 occasions
(either consecutively or at different points of time) during the entire period of initial
moratorium / repayment holiday, then, the concession in ROI of 0.50 % allowed shall
PM
be withdrawn and normal applicable interest shall be charged from that month
onwards during which the 3rd default occurred.
24.1.29.8 During the initial moratorium / repayment holiday, as the borrower is opting to
service the interest on his / her own accord, no penal interest to be charged for
3
default in interest servicing during this period. Also, during this period, NPA
provisions are not applicable.
:5
24.1.29.9 The concession of 0.50 % in interest in the applicable rate is also to be provided on
the principal loan sum at the time of commencement of repayment as per the
04
repayment schedule originally fixed, provided there are not more than 3 defaults in
servicing interest on a monthly basis in the entire moratorium period and the entire
interest debited during moratorium is serviced before the commencement of
3
repayment period.
02
24.1.29.10: 0.50 % concession in rate of interest on the applicable rate of interest on

/2
Education Loans for all courses pursued by girl students.

0
24.1.29.11 Concessional in RLLR for students pursuing Engineering, Medicine and Management
/1
Studies in Select Top 58 Premier institutions listed under Vidya Turant Scheme during
the entire study period:
26
Premier Institutions ROI

ISBs, IIMs, IRMA RLLR-0.65%
8
IISC, IITs, ISM, IIIT-H, AIIMS, PGIMER,

77
JIPMER, CMC, BITS, XLRI, XIMB

The concession in RLLR is applicable only during the Course period i.e 2 years for
Management studies, 4 Years for Engineering Studies and 5 years 6 months for
99
Medical studies.
The applicable schedule codes for applicable concessional ROI for ISBs, IIMs & IRMA
are as under:
Schedule Code Schedule Name Particulars

3028 VIDYA TURANT CONCESSION ROI-IOI- ISB Interest Only
IIM IRMARLLR-0.50% Installment schedule
3029 VIDYA TURANT CONCESSION ROI-HOL- ISB Holiday period
IIM IRMARLLR-0.50% Schedule
Page 191 of 212

Note:
 The concession in RLLR is effective from 15.05.2023.

 The concession in RLLR is extended only to Select Top 58 Premier institutes
enlisted under Vidya Turant Scheme
 The concession in RLLR is applicable to fresh educational loan sanctions to
the students pursuing studies under Vidya Turant Scheme prospectively.
 The concessional Rate is permitted till course completion date or during the
course period of 2 years for Management studies, 4 years for Engineering
Studies and 5 years 6 month years for Medical studies whichever is less.
 If the student is not able to complete the course/extension of course period
due to unforeseen circumstances, the concession in RLLR will be restricted
to the course period as per curriculum.
 After completion of Course period, the prevailing ROI shall be applicable as
per the Vidya Turant Scheme guidelines.
For further details, refer HO CIR IC/439/2023 Dated 15.05.2023.
PM
24.1.30 Penal Interest:
Loan amount Loans granted Loans granted
3
before 01.06.2001 after 01.6.2001
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i) Upto Rs.25,000/- NIL NIL
ii) Above Rs.25,000/- & upto 1% NIL
04
Rs.2 lakh
iii) Above Rs.2 lakh 2% 2%
3
The above guidelines are applicable irrespective of the fact whether student has pursued or
discontinued the studies.
02
24.1.31 PROCESSING CHARGES:

/2
Loan Amount upto Rs.7.50 Lakh- Nil.

0
Loan Amount above Rs.7.50 Lakh- 0.50 % of the loan amount with Minimum of Rs.1000
/1
and Maximum of Rs.10000-/-.

26
*No processing charges for the Educational loan sanctioned under Vidya Turant Scheme
and ward of the employees/ex-employees wherever employees/ ex- employees are joint
borrower in the loan.
8
77
100% waiver of processing charges, if any shall be permitted by CGM/GM-HO-CAC.
 A referral fee of Rs 118/- has to be paid to NSDL for any loan sanctioned and disbursed,
99
through NSDL – Vidyalakshmi Portal. The referral fee will be debited centrally from HO by the
way of GEFU as and when the demand raised by M/S NSDL.
24.1.32 REPAYMENT:
Repayment holiday / Moratorium:
1) Repayment of the loan will be in equated monthly installments for periods as under
(excluding the course period plus the moratorium period).
2) Uniform one-year moratorium period is available for repayment after completion of
studies in all cases. i.e., Repayment holiday consists of Course period + (1 year after
completion of course).
Page 192 of 212

3) Repayment of the loan is to be in equated monthly installments for a period of 15 years
for all loans irrespective of loan amount.
4) Moratorium can be considered during incubation period if the student wants to take up
a startup unit. The respective sanctioning authority may permit extension of moratorium
period on a case-to-case basis keeping in view of the nature of entrepreneurship activity
and income generation ability, subject to a maximum of 2 years.
5) If the student is not able to complete the course within the scheduled time, extension of
time for completion of course may be permitted for a maximum period of 2 years. If the
student is not able to complete the course for reasons beyond his control, sanctioning
authority may at his discretion consider such extensions as may be deemed necessary to
complete the course.
6) In case the student discontinues the course midway, appropriate repayment schedule
will be worked out by the Sanctioning Authority in consultation with the student/parent.
7) The repayment will be by way of EMIs arrived on the total outstanding amount (i.e.,
Principal + accrued interest), at the end of the moratorium period.
8) Penal interest wherever applicable at the appropriate rate is to be charged for overdue
loans.
9) Branches have to arrive at the EMI on the total outstanding amount (principal + interest
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accumulated during the repayment holiday period) and inform the equated monthly
installment amount to the borrowers in writing by Regd. Post Acknowledgement Due,
before the commencement of the repayment period. The acknowledgement received
from the party and the duplicate copy of such notice/letter is to be kept along with the
3
loan papers.
10)
:5
If a student who has availed an education loan takes up higher studies with/ without
availing education loan for second course, the repayment of the first loan can be
04
postponed till the date of completion of the higher course including moratorium period,
provided sufficient proof is obtained that he is pursuing the course and branch is satisfied
that the student is in need of repayment holiday.
3
11) In addition to the above branches/offices have been permitted to consider the following:
02
a. Whenever the student requests for telescoping of repayments, branches can consider
on merits of the case.
b. The telescoping repayment shall be fixed with stepped up installments with passage
/2
of time.
0
c. The telescoping repayment can be considered after duly assessing the capacity of the
student.
/1
Recall of Education Loans : Branches may recall the loan during the study period or before
26
completion of extended period of two years, if there are reasons to believe that the student
will not be able to complete the course/has intentionally abandoned the course.
8
NOTE:
77
No prepayment penalty will be levied at any point of time during the repayment period if the
borrower makes prepayment from his own sources. However, in case where the account is taken
99
over by other Banks/FIs, concessions in ROI / Charges extended for the last one year to be
recovered before closure.
24.1.33 OBTENTION OF UID NUMBER (AADHAAR),E MAIL ID, PAN NUMBER,

MOBILE NUMBER OF THE STUDENT BORROWER IS COMPULSORY:
i. Obtaining of PAN/AADHAAR during submission of Education loan application.
ii. If the student is not having UID number, he has to enroll himself and provide the copy
of the acknowledgement receipt which has been issued at the time of enrolment for
Aadhaar. Aadhaar No of co-obligant/guarantor also should be collected during
submission of EL application.
Page 193 of 212

iii. If the student is not having PAN number, the same may be submitted subsequently
within a maximum time of at least six months from the date of first disbursal of the
loan.
iv. In any case the PAN /UIDAI card copies should be submitted before next disbursement
or within a maximum time of 6 months from the date of first disbursal whichever is
earlier. The same is applicable for joint applicant also.
v. Students have to necessarily submit e-mail ID and mobile number along with education
loan application. The email ID & mobile number of co-obligant/guarantor also to be
collected during submission of EL application. The mobile number of co-borrower also
to be collected and updated in the CBS system.
vi. Obtaining of Passport is mandatory in case of loans sanctioned for Abroad studies.
vii. Passport no./VISA no. shall be obtained and updated in CBS in all Education loans
sanctioned for Abroad studies.
24.1.34 REPHASEMENT GUIDELINES: RESTRUCTURING / REPHASEMENT OF EDUCATION

LOANS:
PM
Sanctioning Authority can restructure/rephase the Education Loans as per the extant
guidelines prevailing in the Bank, if requested by the borrower.
Statutory Central Auditors of the Bank have observed that the supportive documents for
3
rephasement of Education Loans are not available with the loan records at branches and
commented there upon.
:5
04
In this backdrop, it is advised as under:
a) The consent letter of the borrower should be obtained to revise/extend the repayment
3
period in all genuine cases and should be maintained with the loan records.
b) The extension in repayment should be need based and it should be from the prospective
02
date only.
c) Wherever the repayment period of educational loans has been enhanced due to student
/2
going for higher studies, proper documentary evidence should be obtained and
preserved along with respective loan documents for verification by the Inspecting
0
Officials/Statutory Auditors.
/1
Branches/Offices should take note of the above guidelines and strictly adhere to the stipulated
26
guidelines while restructuring the Education Loan Accounts.

24.1.35 OBTENTION OF CICs REPORT:
8
The branch should mandatorily obtain the satisfactory CICs report of the
77
borrower/guarantor/co-obligant at the time of sanction as per HO Cir.165/2020 dated

24.03.2020. For Educational loan up to Rs.4.00 Lakh one CICS and loans above Rs.4.00 Lakh
99
two CICs need to be drawn.

With respect to Education Loan irrespective of Risk Grades obtained, Concerned Sanctioning
Authority may consider the proposal up to their delegated powers.
If the credit history of the parent/guardian who shall stand as co-borrower and guarantor is
found adverse, and not acceptable to the branches, then another guarantor with satisfactory
credit history acceptable to the Bank may be obtained. Branch shall be advised by latest HO
Circular time to time with reference to CICs report.
24.1.36 DOCUMENTATION, ACCOUNTING AND FOLLOW UP:
Page 194 of 212

A. Documentation for study in India (including DRIs):
1. NF.1011: Application form – Academics & Admission Letter (Vidyalakshmi Portal

Application)
2. Documents in support of income of the parent / guardian, viz., ITAO/WTAO/certified
salary slips etc. If agricultural income, copies of relative land records are to be obtained.
3. NF.440 : Education Loan Agreement (Agreement to be stamped as agreement cum Power
of Attorney)
 Jointly by the parent / guardian and the student in case of major students.
 By the parent / guardian on behalf of self and minor, in case of minor students.
 By the Co-obligant also wherever co- obligation is stipulated.
 In respect of loans to children of our employees, employee's co-obligation shall be
obtained.
 Admission offer letter from the college.
 Copies of mark sheets of qualifying exams.
 Allotment letter from CET/GRE/GMAT/CAT etc.
 Detailed fee structure for the entire course period.
 Quotations for laptop if prescribed by the College Authorities.
PM
 Admission letter to Hostel if included in the course with year wise charges.
 Estimates/monthly living expenses for the course period, if not availed hostel facility
in the institutions.
4. NF 370: Guarantee Agreement – to be obtained from the guarantor and the borrower.
3
5. NF 371: Guarantee Covering Letter.- to be obtained from the guarantor
6. NF.546: Specimen Signature Card.
:5
7. NF.589: Particulars of Assets & Liabilities Report/declaration of borrower/ guarantor / co-
04
obligant, wherever guarantee is taken.
8. Three photographs of the borrower (both student and parent / guardian) and co-
borrowers.
3
9. Obtain two local references (who have close relationship / contact with the applicant’s
02
family)
10. Copy of PAN card from student/parents as co-obligant/borrower wherever available.
11. Obtain details of Unique Identity Number (UIDAI/ AADHAR).
/2
12. Necessary documents to secure the loan, as per security norms where loan amount
0
exceeds Rs.7.50 lakh.

13. NF. 855 - Agreement cum deed of hypothecation should be obtained wherever applicable.
/1
14. Waiver of insurance cover for computers up to a value of Rs.60,000/- may be permitted
26
duly obtaining NF.368. However, borrowers may be advised to go for Annual Maintenance
Contract with replacement of parts at their cost after the warranty period.
15. Stipend / Scholarship or other monetary assistance received by the borrower can be
treated as margin. However, if such assistance received exceeds the margin stipulated,
8
then the excess amount should be credited to the loan account. Hence, an undertaking
77
letter from the student / parent that any scholarship / stipend / loan scholarship or
any other monetary assistance will be credited to the loan account, should be
99
obtained from student / parent.

16. A letter of confirmation as per APPENDIX-43 as per Manual of Instructions on Retail
Lending Schemes updated till 30.06.2009 should be obtained from the minor (on
attaining majority) declaring that the loan is binding on him/her and he/she undertakes
to discharge the same in accordance with the terms and conditions. Copy of the format
is attached as Annexure-V to this Circular.
17. Wherever additional loan is given, supplementary agreement shall be obtained from
student and parent / guardian/co-borrowers and suitable documentation for continuation
of securities should be obtained.
18. Documentation: Branches to strictly adhere to the extant guidelines while executing the
documents of Educational Loans and safeguard the interest of the Bank.
Page 195 of 212

B. DOCUMENTATION FOR STUDIES ABROAD:
In addition to the above, following are to be obtained:
1. Copy of the passport and VISA.

2. Provisional admission letter/Form I-20/CAS whichever is applicable issued by the Foreign
University / Institution.
3. Student ID Number given by the University.
24.1.36.1 VIDYALAKSHMI PORTAL (Online Education Loan Application Portal):

Vide HO Cir.849/2020 dated.05.11.2020, it is mandatory for all student applicant seeking
education loan are advised to submit the application through Vidyalakshmi Portal.
PRADHAN MANTRI VIDYA LAKSHMI KARYAKRAM (PMVLK): VIDYA LAKSHMI PORTAL FOR
EDUCATION LOAN:
Govt. of India has set-up a fully IT based Student Financial Aid Authority to administer and
PM
monitor Scholarship as well as Educational Loan Schemes, through the Pradhan Mantri Vidya
Lakshmi Karyakram (PMVLK) to ensure that no student misses out on higher education for lack
of funds.
3
The IT based mechanism under the Pradhan Mantri Vidya Lakshmi Karyakram is meant to
:5
provide students a single window electronic platform for Scholarships and Educational Loans.
04
The Vidya Lakshmi portal has been made live on 15.08.2015. The students can apply online
for Education Loan to any Bank, in the application format designed by IBA through the subject
portal i.e. www.vidyalakshmi.co.in. The Bank to which the application is directed by the
3
NSDL portal has to download the same from their web site through the interface software and
02
forward to concerned branches for logical closure of the application. Students may be advised
to submit their loan application through Vidyalakshmi Portal
/2
A. ROLE OF BRANCHES/RAH:
0
Vide HO Circular 372/2021 dated. 04.06.2021, Vidyalakshmi Portal link has enabled in LAPS
/1
package for processing Education loan application received applied through VLP Portal M/s
NSDL.
26
Upon receipt of the online applications relating to the branch LAPS login, the branch should
contact the applicant in the contact number provided in the on-line application and advise
8
him/her to visit the branch within 15 days with all the original documents required for
77
processing the application.

The online application should be down loaded and the copy should be treated as application
99
submitted by the student for all purposes, duly obtaining signatures of borrowers. Separate
application need not be taken from the student. All other requirements like original admission
letter received from college / university, statement of fee structure and other documents
required for further processing of the application should be obtained from the student. The
applicant should be guided on the norms and guidelines of the scheme. The applicant should
be advised to submit the completed application with the required documents.
Upon receipt of the completed education loan application with the required documents, branch
has to process the application and convey their decision to the applicant within the time norms.
Any rejection is to be made only with the concurrence of next higher authorities.
Page 196 of 212

If the student does not turn up within 15 days of receipt of online application, a reminder letter
should be sent to applicant, informing him/her that the loan application submitted by him/her
will be lodged if they do not visit the branch within next seven days, for completion of the
process. On expiry of the time the application has to be marked as Closed in Vidyalakshmi
Portal.
Branches/offices are advised to attend to the requirements of education loan applicants who
have applied through online facility with customer friendly and sympathetic outlook. In case
their applications cannot be considered for valid reasons, they should be properly apprised
giving complete details besides sending an e-mail to them communicating the reasons for
rejection.
Branches has to update the correct status once the application has put up for processing. The
detailed Status available under the Vidyalakshmi Portal are as below.
a. In process: By Default, all the applications are updated as “In process” status
b. Prima Facie Eligible: If everything is in order then branch user shall can change the status of
PM
the application to Prima Facie Eligible.
c. Rejection: This option shall be used by only RO users. Branch users are not allowed to select
this option. If branch wants to reject the application, then select “Rejection Recommended for
3
RO”(Point no h)
:5
d. Need More Information: If more information is required from that applicant, then Branch
user has to select Need More Information.
04
e. Approved: This status is updated by the system automatically, after the Branch approves the
application. The users cannot select this option manually.
3
02
f. Disbursed: Users have to enter the disbursement details only after the amount is disbursed
in CBS for that loan account. Automation of disbursal details will be enabled shortly from LAPS.
/2
g. Closed: If the user wants to close the application then they have to select this option. Once
they change the option to close then there is “No Reversal” back and the status of the
0
application cannot be changed.

/1
h. Rejection Recommended for RO: If branch wants to reject the application then they have
26
to select this option and Reject the same. Once they select this option then Corresponding
Regional Office has to authorize the rejection entry for the rejection process to be completed.
8
B. ROLE OF MONITORING SECTIONS AT REGIONAL OFFICES/CIRCLE OFFICES:

77
Reports are made available for the RO LAPS users for monitoring and follow up with branches
for updating the status of applications within the scheduled time. In respect of Rejected
99
applications, Regional office users may note that they should accept/deny the rejected
applications by branch. Once it is authorised by RO then Rejected status will be uploaded to
NSDL Vidya Lakshmi Portal centrally. Regional Offices can reallocate the Vidya Lakshmi
proposals within the branches coming within their RO.
Circles should follow up with RO/branches for logical end of the process, i.e., sanction of the
education loan or rejection with valid reason and conveying the position to the applicant, within
15 to 30 days of receipt of application.
Page 197 of 212

24.1.36.2 STANDARD OPERATING PROCEDURE FOR VIEWING “DASHBOARD ON VIDYA
LAKSHMI PORTAL APPLICATION” BY RAHS FOR THEIR LINKED BRANCHES. : IC/385/2022
In order to instigate proper monitoring mechanism of Vidya Lakshmi Portal application and to
improve the Turnaround Time (TAT), Bank has provided a dedicated Dashboard to RAHs for
viewing “Vidya Lakshmi Applications” for their linked branches:
We are providing here below the Workflow / Navigation for viewing the reports on “Vidya
Lakshmi Portal Application” through LAPS. Report is available at the following location for the
Branches/RAHs/ROs/COs users to monitor and follow up Vidya Lakshmi Portal leads at T+1
days. Branches/RAHs/ROs/COs have to contact these students on time and to ensure that leads
are converted to business. After processing, sanctions and disbursement, the status of
applications are to be immediately updated in Vidya Lakshmi Portal. Once the status of
applications are updated by the Branch, the same will be communicated to students for his
information.
WORKFLOW / NAVIGATION:
PM
Step I: LAPS Home Page -> LEADS ->Vidya lakshmi -> Reports
CO
Step II: Select Organization Level: RO
RAH
3
Branch
:5
04
Step III: Choose Process Status: In process
Prima Facie Eligible
Rejection
3
Need More Information

Approved
02
Disbursed
Closed
/2
Rejection Recommended for RO

0
/1
Step IV: Choose Authorized Status:

26
All
Authorized
Un authorised
8
Step V: Run Report

77
Note: workflow/navigation for viewing “Dashboard on Vidya Lakshmi Portal Application”

99
through LAPS and ensure that applications are timely attended. Under no circumstances,
proposals under Vidya Lashmi Portal should be pending for more than 30 days.
In addition to this, the Vidya Lakshmi Portal report on T+1 day basis is also available under BI
with report No.301015.
24.1.36.3. Jansamarth portal (National Portal). https://www.jansamarth.in/home
Routing of all Credit linked interest subsidy (CSIS, ACSISEBCOBC) eligible Educational loan
application through Jansamarth Portal.
Jansmarth portal, one-stop digital portal linking all Government sponsored credit linked
Subsidy schemes.
Page 198 of 212

Routing of all Credit linked interest subsidy (CSIS, ACSISEBCOBC) eligible Educational loan
application through Jansamarth Portal.
Jansamarth Portal has designed with business rule engine integrated with UIDAI, CBDT, Credit
Bureau for digital verification and to provide in principle based on the parameters set by
Banks/FIs. Under Educational Loan Segment, Central Sector interest subsidy Schemes viz.,
CSIS, ACSISEBCOBC, Padho pardesh are made available in Jansamarth portal.
Handling of Jansamarth Portal application:
 For RAHs, the mapped branches applications are available under LAPS.
LAPS- LEADS MANAGEMENT- NATIONAL PORTAL – EDUCATION LOAN SEGMENT 
 The status description of Jansamarth portal are,
i. HOLD- application which are marked hold for need for information/documents.
ii. Sanction- application completed and approved sanctions.
iii. Disbursement-date and amount of disbursement has to be updated.
iv. Rejected- RAHs will forward the application “Rejection recommended to NHA” to
PM
AGM-RO CAC and above. Rejection Status will be authorized in “AGM-RO-CAC-
Convener and above template only at ROs/Cos.
 On receipt of application, RAHs to scrutiny the application and to proceed for sanction.
If the documents are partially uploaded or not available, mark the application as
3
“HOLD” and inform the student for submission of documents in time.
:5
 Sanction should be conveyed within 7 days from the receipt of proposal as per extant
guidelines.
04
 For Rejection of application, the proposal should be placed to NHA i.e. AGM-RO-CAC
and above with valid reasons for rejection.
Note: Once the proposal is rejected, the subject applicant has to be kept 60 days under cooling
3
period for applying fresh to Bank/FIs, while rejecting the proposal.

02
Role of offices/Branches:
/2
 To advise/ popularize among the eligible student borrower to apply only through the
0
Jansamarth portal. “www.jansamarth.in/home/canarabank”

 To maintain the Turnaround time (TAT) of 7 days for disposal Jansmarth portal
/1
application.
26
 Mandatory routing of all subsidy eligible educational loan application through

Jansamarth portal only.
 Routing of proposal through Jansamarth portal will reduce the manual
intervention/failing to claim the subsidy.
8
77
24.1.37 FOLLOW UP AND RECOVERY:

99
a) Timely sanction of loans and regular follow up should be ensured.

b) Branches to contact college / university authorities to send the progress report at
regular intervals in respect of students who have availed loans by calling for the Annual
Progress Report at the completion of each year and monitoring the passing of the
relevant year/Semesters wherever applicable by verifying the annual progress report.
c) Educational Institutions may be requested to communicate to the Branch about the
academic achievements and placement details of the students which will help the
Branch to a great extant in tracking the students.
d) Branches, in turn, on receiving the annual academic performance details of the student
borrower from the college / Institution to write to students either appreciating their
performance where the same is good or advising them to improve the same where the
performance is poor. This will strengthen the communication channel and bond
between the student and the branch.
Page 199 of 212

e) In case of studies abroad, branches may obtain the Unique Identification Number
(UIN)/Identity Card/ Social Security Number( SSN)/ and note the same in the bank's
records. Branches are also advised to record visa details of the students availing
education loan for studies abroad for tracking the student.
f) Seeking details of Scholarship/Free-ships etc if any secured during the mid-period of
First Year / First Semester.
g) Completion of formalities in case student attains majority. A letter of confirmation
should be obtained from the minor on attaining majority.
h) Ensure recovery of interest on monthly basis if party has opted for servicing interest
during repayment holiday.
i) On completion of disbursement in the final year, address a letter to the student, parent
& guarantor (wherever applicable) informing of the completion of the disbursements
and seeking the details on:
I. Obtaining the course completion certificate.

II. Post-Graduation or other courses planned, if any.
III. Financing pattern of further studies planned, if any.
IV. Outcome of Campus recruitment, if any.
PM
V. Job secured / Self Employment planned, if any.
VI. In case job is secured, collect the address of the employer.
j) One Year after completion of the course, arrive at the EMI on the total outstanding
3
(principal + interest accumulated during the repayment holiday period and capitalized)
:5
and inform the EMI (both Amount and No. of Installments) to the borrower, co-borrower
and Guarantor in writing by Registered Post Acknowledgement Due. In case of non-
04
servicing of debt, send notice to Borrower, parent/guardian and guarantor, wherever
applicable in usual format.
k) Seek help from the employer if applicable, in case of non-servicing of debt.
3
l) If intends to continue studies further, extending further finance as per guidelines and
02
deferring repayment of earlier loan based on the need.
OR
/2
Intends to continue studies further, but is not interested in availing loan for the
0
purpose, deferring repayment of earlier loan based on the need.

/1
m) Branches should keep a regular contact with the party both during the course and
26
after employment to ascertain the study / employment status.
n) Branches shall send pilot letter for installments / interest repayment and reminder
8
letters. The help of nearby branches can also be solicited for improving the recovery.
77
o) All the irregular / overdue educational loans should be reported in the relevant
advances review returns and under Special Watch List.
99
24.1.38 GENERAL:
In respect of loans which have been already sanctioned but yet to be disbursed/availed, the
norms will be as per the existing guidelines of the IBA’s Model Educational Loan Scheme issued
earlier.
Branches may recall the loan during the study period or before completion of extended period
of 2 years, if there are reasons to believe that the student will not be able to complete the
course / has intentionally abandoned the course.
The scheme guidelines applicable to the wards of the employees are similar to that of the
customers if there is any special provision/concession for the wards of the employees under IBA
Page 200 of 212

guidelines. The same will be brought to the notice of the branches as and when approved by
the competent authorities.
24.1.39 SERVICE CHARGES:
a) All other out of pocket expenses are to be recovered.

b) For the purpose of arriving at rupee equivalent of the foreign currency amount
mentioned in the certificate and calculation of commission, TT Selling Rate prevailing
on the date of issuance of the Certificate or the rate available in latest ID Exchange
Rate Series should be applied.
c) For arriving at the net worth of the sponsor, value of movable assets like Bank
Deposits, Gold Ornaments, Jewellery, Investment in shares / securities, debentures,
company deposits, personal unencumbered properties, capital investment in business
including investment in partnership are to be computed. Out of the above, existing
borrowings, if any should be reduced to arrive at the net estimated worth or means of
the sponsor.
d) Service charges for issue of Capability Certificate:
PM
Particulars Amount
Upto Rs.5.00 Lakh Rs.500-/-
3
Above Rs.5.00 Lakh Rs.100/- per lakh, subject
to a maximum of Rs.1,500/
:5
Additional Capability certificate to same student for Rs.50/- per certificate
applying to other universities / same university within
04
12 months from the issue of original Capability
Certificate.
3
02
24.1.40 GRIEVANCE REDRESSAL MECHANISM FOR EDUCATION LOANS:

Government of India and IBA/RBI had advised Banks to evolve a robust grievance redressal
/2
mechanism in respect of Education Loans. In this regard, we advise as under:

0
i. The Branch-in-Charge shall be the Grievance Redressal Officer for Education Loans
/1
(GROFEL) at Branch level.

ii. The Overseeing Executives handling Educational Loan Scheme shall be the Grievance
26
Redressal Officer for EL (GROFEL) at Controlling Offices.

iii. The Overseeing Executives for Educational Loan Scheme at Head Office shall be the
GROFEL at Head Office. It shall be the duty of GROFELs to ensure that the complaints
8
are disposed of within the prescribed time norms received at their respective levels.
77
iv. Branches to note that already, Bank’s toll free number 1800-425-0018 is furnished in the
EL brochure for the benefit of students who are seeking for information/guidance under
EL Scheme besides lodging complaints.
99
24.1.41 TO INITIATE PENAL ACTION AGAINST BRANCH MANAGERS WHO REPEATEDLY

REJECT/REFUSE THE EDUCATIONAL LOAN APPLICATIONS.
i. Circles should counsel Branch Managers/Officers who are in the habit of rejecting
applications frequently in the initial stage, without valid reasons.
ii. If the concerned Officer does not show any improvement in this regard, he/she should
be warned in writing.
iii. Subsequently, appropriate disciplinary measures as deemed fit, will be initiated as
under:
 Rejection of applications without referring to next higher authority shall be construed
as Major Misconduct, as it is a violation of the extant guidelines under the Scheme.
Page 201 of 212

 Sanction of Educational Loans by the branch after intervention of higher authorities
(CO/HO) upon receipt of complaints from the applicant at their end shall be viewed
seriously which may lead to further disciplinary action.
Hence, branches are advised to consider the EL applications in a pro-active manner,
without giving scope for complaints.
24.1.42 DELAY IN SANCTION OF LIMITS AND REPEATED REFUSAL OF LOAN ON FLIMSY

GROUNDS:
Branches are required to follow the laid down norms in sanctioning/rejection of
education loan applications strictly as per extant guidelines/stipulated time norms
applicable to priority sector lending circulated by Reserve Bank of India.
i. Branches to strictly adhere to the existing guidelines on stipulated time norms (i.e.,
priority sector norms) for disposing of Educational Loan applications.
ii. Rejections, if any, should be done only with the concurrence of the next higher
authority and the same should be conveyed to the applicants in writing. Reasons for
rejections should be clearly recorded.
PM
Some of the common reasons are as under:
1) Unable to provide the required Security.
2) Required documents not submitted.
3) Party not turned up at the Branch after a considerable time. Registered notice has also
3
been given but no response.
:5
4) Borrower/Parent/Guardian/co-borrower is a defaulter.
5) Minimum mark in the qualifying examination is not obtained.
04
6) Educational institution is not recognized.
7) The course is not approved.
24.1.43 POST SANCTION FOLLOW UP OF EDUCATION LOAN IS AN IMPORTANT ASPECT:

3
02
To strengthen the process of post sanction follow-up, following system is to be adopted by

all branches:
/2
i. Once the loan is sanctioned, branches shall inform the college the full details regarding
sanction of loan and request to note the same in their records.
0
ii. At the time of releasing the last installment, a communication is to be sent to college
/1
authorities.
iii. To be in touch with alumni associations for recovery of loan amount in case of default.
26
We reiterate that ensuring quality of Education Loan Accounts should be accorded utmost
priority and the prevailing guidelines to safeguard the Education Loan portfolio shall be
8
scrupulously adhered to.

77
24.1.44 HANDLING OF EDUCATIONAL LOAN ACCOUNTS BY BRANCHES NEAR TO THE

99
EDUCATIONAL INSTITUTIONS:
The branch which has sanctioned educational loan to a student has to inform the sanction
details of the said student to the branch nearest to the Educational Institution from where
the student is pursuing his education. The link branch situated near the Educational
Institution should ensure the following:
i. To monitor/enquire the academic progress of the students referred by the sanctioning

branches.
ii. To get confirmation from the college authorities on the progress of the student to the
next higher class for further disbursements.
iii. To obtain the marks sheet from the college authorities.
Page 202 of 212

iv. To collect the information on campus selection, salary offered, whether joined the
company or rejected on completion of the course, etc.
v. To be in touch with alumni associations for recovery of loan amount in case of default.
However, the basic aspect of follow up and recovery rests with the sanctioning branch
(base branch).
24.1.45 CLASSIFICATION:
Education Loans granted to individuals for educational purposes up to an amount of Rs.20.00

Lakh for studies in India & for studies abroad will be treated as PRIORITY SECTOR ADVANCES.
Loans granted by Bank to NBFCs for on-lending to individuals for educational purposes upto
Rs.20 Lakh for studies in India and for studies abroad will also be treated as Priority Sector
Advance. However, loans granted to Institutions will not be eligible to be classified as Priority
Sector Advance.
The ceilings fixed for studies in India and abroad correspond to the limits fixed by the RBI for
PM
treatment as priority sector lending.
Reporting of Priority/Non- priority will be taken care of in the flash Report.
24.1.46 OBTENTION OF AOD:
3
:5
i. AOD should be obtained after completion of 24 months, but before 27 months from the
date of commencement of repayment (this is applicable wherever agreement is taken).
04
However, where only pronote is taken, AOD should be obtained after 24 months but
within 27 months from the date of loan papers.
3
ii. Besides, AOD/LOR is to be obtained both from the student as well as the parent /
guardian who has executed the loan documents representing the minor student, within
02
the limitation period. This is required as the loan agreement is executed by the
parent/guardian representing the minor in that capacity and also in his personal
/2
capacity.
0
iii. In case of studies abroad, AOD may be obtained as per the guidelines furnished under
/1
Clause 3 here below.

26
Where the borrower /co-obligant resides abroad:

a. For the purpose of computing limitation period for filing suit, the period during which
8
the borrower stays abroad is to be excluded.

77
b. Wherever circumstances necessitate obtention of AOD, it should be got executed and

stamped as per the law in force at the place the borrower resides. (or)
99
c. AOD may be got through postal correspondence by addressing a letter to the borrower.
The signature on the AOD should be witnessed by his/her banker abroad or by any other
non-resident maintaining account with us or by Consulate Officer of the
Embassy/Consulate of India in that country.
iv. When AOD is received in India, the same shall be stamped as per the law in force in
the place where the branch is situated, within 3 months from the date of receipt.
24.1.47 ISSUE OF BANK GUARANTEE:
i. Bank Guarantee can be issued for deserving students for taking up technical courses
viz., engineering, Medical, Management etc., in Government recognized
autonomous institutions like IIT, IIM etc.,
Page 203 of 212

ii. Guarantee should be issued as per Annexure- VI(A) Counter guarantee for self and
on behalf of Minor as per Annexure-VI(B)
24.1.48 STAND BY LETTER OF CREDIT (SBLC) FACILITY FOR EDUCATION LOANS AVAILED BY
INDIAN STUDENTS FOR STUDY ABROAD FROM FOREIGN BANKS
I. Scheme Guidelines:
1. Branches / RAH /Circles have to make proper assessment and sanction education loan
equivalent to the SBLC amount, duly complying with all the terms and conditions of
Educational Loan scheme guidelines as applicable to overseas studies.
2. Simultaneously a SBLC limit is to be sanctioned as a sublimit of the education loan limit
duly obtaining 25 % cash margin by way of deposits, and earmarking education loan limit.
3. Education loan to be sanctioned with NIL margin.
4. Education loan to be secured by approved collateral security to the extent of 125% of the
limit sanctioned.
5. After complying with above, including mortgage and execution of loan papers, the branch
can proceed to issue SBLC as per the format required by earmarking the education loan
PM
limit and cash deposit.
6. Education loan should not be disbursed for any purpose other than meeting the SBLC
commitment.
7. The student borrowers are to be advised to obtain specific permission / NOC from RBI
3
enabling our bank to issue SBLC as per the terms, only after which processing of education
:5
loans would be taken up. This will ensure compliance of RBI guidelines on an ongoing basis.
8. Proposals for issuance of SBLCs should be permitted by Circle Head CAC only.
04
II. Overseas lender requirement:
a) It should be a Prime Bank.
3
02
b) University should issue letter confirming that the Bank is one of their preferred banks.
III.Terms and Condition for SBLC:
/2
1) 25% margin by way of fixed deposit for a tenure matching with the SBLC period.
0
/1
2) SBLC format should be got vetted from R&L Section of respective Circle Office and
ensured that there are no onerous clauses.
26
3) The student /parent shall give an undertaking letter to meet the differential amount
from their own sources, in case of adverse fluctuation in rate of foreign currency as on
the date of invocation of SBLC / guarantee. Further,
8
a) SBLC will be sanctioned as sublimit of Education Loan with 25% margin by way of deposits
77
matching the period of SBLC.

b) Collateral is obtained to the extent of 125 % of Education Loan limit and hence SBLC will
99
be secured by 150 % collateral security.

c) The branch/ Circle issuing SBLC should monitor the currency risk emanating from the
adverse moment of INR vis- a –vis to the foreign currency loan, on a quarterly basis and
ensure that the collateral margin does not fall below 150 % of the SBLC limit. Borrower
has to be advised /to undertake that he will bring the additional amount by way of cash
margin to meet the increased contingent liability under SBLC due to adverse movement
of foreign currency, if any, on a quarterly basis.
4) The SBLC / guarantee shall be initially issued for the period stipulated in the permission
letter issued by RBI to the concerned student
5) Appropriate documentation as prescribed by bank should be obtained for SBLC limit,
and commission to be collected as per norms.
Page 204 of 212

6) The counter guarantee, to be obtained from the borrower /parent/ guarantor should
contain a clause for consent to renew the SBLC /guarantee, as per the request of the
beneficiary bank abroad, as when the beneficiary bank approaches for the same.
7) At the time of extension/renewal of SBLC, the same should be done duly considering
the reduced liability on account of repayment etc., at the foreign bank.
IV. Recovery/re-phasement in above cases may be done in the tune with guidelines under
IBA‟s Model Education Loan scheme of the Bank, based on specific information /request from
the student on a case to case basis duly permitted by circle.
V. Other Conditions:
a) SBLC should be issued for a period as initially stipulated by RBI in their sanction letter
and to be renewed/extended further as per the requirements of the overseas lender or on
a yearly basis whichever is earlier, duly taking into consideration repayment made and at
the same time reducing the Education Loan limit to match the SBLC amount.
b) In case of devolvement of LC the branch should remit the amount by debit to Education
PM
Loan account /cash margin on a 75:25 basis.
c) As regards to the recovery of the devolved amount, the existing guidelines regarding
moratorium and further repayment period for education loans to be adhered. d) FEMA
3
guidelines / Guidelines of RBI master Circular on Guarantees and Co acceptances issued
:5
from time to time are to be complied, with while issuing such SBLCs.
04
24.1.49 ISSUE OF CAPABILITY CERTIFICATE:
1. Branches can also issue the capability certificate for students going abroad for
3
higher studies. For this purpose financial and other supporting documents may be
02
obtained from applicant, if required.

2. Branches may issue capability certificate as per existing provisions.
3. Some of the foreign universities require the students to submit a certificate from
/2
their bankers about the sponsors' solvency/ financial capability, with a view to
ensure that the sponsors of the students going abroad for higher studies are capable
0
of meeting the expenses till completion of studies.

/1
26
24.1.50 ACCOUNTING FOR SUBSIDIES RECEIVED UNDER VARIOUS SUBSIDY SCHEMES:
i. The interest subsidy for Education loans under various schemes such as CSIS / Padho
8
Pardesh (withdrawn w.e.f 01.04.2022)/ACSISOBCEBC etc is available only for loans

77
sanctioned under IBA’s Model Education Loan Scheme including Vidya Turant Scheme
upto moratorium end date.
99
ii. The interest subsidy amount received under various subsidy schemes e.g. CSIS for
Education loans/ Padho Pardesh (withdrawn w.e.f 01.04.2022) /ACSISOBCEBC, should
be adjusted towards accrued interest portion of education loans.
iii. Subsidy is available up to limit up to Rs.7.50 lakh under CSIS scheme, even if the limit
sanctioned is more than of limits specified above.
iv. Subsidy is available up to limit of Rs.20.00 lakh only under Padho Pardesh and
ACSISOBCEBC schemes, even if the limit sanctioned is more than of limits specified
above.
Page 205 of 212

v. Branch has to compulsorily contact all student borrowers immediately and a notice
shall be sent to the borrower by Registered Post with Acknowledgement Due has to be
sent for submission of income certificate, agreement etc. as detailed in HO Cir
274/2010 dated 07.08.2010 and HO Cir 48/2011 dated 10/02/2011.
vi. The copy of the notice sent to the student borrower and the acknowledgement received
have to be preserved along with the respective loan document. Borrower has to submit
the income certificate only once during the moratorium period. Branches need not
obtain income certificate from the competent authority every year.
vii. Branches should ensure the obtention of Income Certificate and Caste Certificate and
preserve the same along with loan documents.
viii. Branches should ensure the crediting the Subsidies received to the respective Loan
accounts only.
ix. Branches /Offices are advised to strictly adhere to the scheme guidelines regarding
PM
eligibility, income criteria, category of the students etc, while claiming subsidy under
Interest Subsidy scheme for Education Loans and avoid refund of claimed subsidy in
future.
3
PARAMETER CSIS SCHEME PADHO PARDESH ACSISOBCEBC
:5
(withdrawn w.e.f
01.04.2022)
Course Technical/professional courses in Masters, M.Phil & Ph. Masters, M.Phil or
04
India in recognized institute under D level abroad. Ph.D levels abroad.
IBA model scheme.
3
(till 31.03.2018)
02
Professional/ Technical courses only

from NAAC accredited institutions,
/2
Professional/ Technical programme

accredited by NBA or institutions of
0
National importance of Central

/1
Funded Technical institutions (CFTIs)

and other Professional
26
institutions/programme with the

approval of the respective regulatory
authority. (W.e.f 01.04.2018)
8
Category of Economically Weaker Sections (EWS) Minority community Other backward Classes
77
students for all category & economically

backward classes
99
Annual gross Rs. 4.50 Lakh Rs. 6.00 Lakh shall not exceed the
parental/ present creamy layer
family income criteria for OBC and
(Upper limit) Rs.2.5 lakh for EBC
Loan limit up Rs.10.00 Lakh Rs. 20.00 Lakh Rs. 20.00 Lakh
to which
(up to 31.03.2018) & Rs. 7.50 Lakh
subsidy is
wef 01.04.2018
eligible
And from 01.04.2022 upto Rs.10.00
lakh
HO Circulars 274/2010,436/2019 272/2015,59/2018 378/2014
Page 206 of 212

24.1.51 Most Important Terms and Conditions (MITC) governing sanction of Education
Loans.
1. The bank may revoke in part or full or withdraw/stop financial assistance at any stage by
giving reasonable notice to the borrower/s. Credit facilities are to be availed within 6
months from the date of sanction, failing which the limit shall automatically stands
cancelled.
2. The interest rate is linked to Repo Linked Lending Rate (RLLR) and both are subject to
review and variation from time to time as per the RBI/BANK guidelines. The changes in the
base rate and actual lending rate will be notified on the notice board of the branch/Bank's
website from time to time.
3. Disbursement of the loan will be against bills/receipts/demand note from the College,
original receipts for the same to be obtained and kept with the loan papers.
4. Any escalation in the course fee/other expenses has to be borne by the applicant.
5. Student should submit the attested copy of the marks sheets of each term/semester
exams/official transcripts from time to time and the course completion certificate after
completion of the course.
6. Change of Institution/College and Course, if any, is to be with the prior permission of the
PM
Bank only.
7. Details of change in address, telephone Nos, E-mail Id, Cell Nos of borrower /co-borrower
and Guarantor to be informed to the Bank.
8. The employed Office Name, Address, Phone Number to be informed after employment.
3
Bank can direct the employed office to remit the instalment directly to the Bank Loan
:5
Account.
9. Completion of the course to be informed to bank to fix repayment schedule and EMI.
04
10. Any refund of caution money/fee reimbursement scheme of State
government/deposit or scholarship received by the party, to be appropriated towards the
outstanding loan liability.
3
11. Simple interest will be charged during holiday period. Accumulated interest will be
02
capitalized on installments fall due and fresh EMI will be arrived and interest will be
compounded monthly thereafter. In case of default in payment of instalment/interest,
applicable penal interest will be charged.
/2
12. Interest concession of 0.5% over applicable rate shall be extended when the ongoing
interest is serviced by the borrower regularly during the repayment holiday/Moratorium
0
period and it is subject to review as per the Bank guidelines.

/1
13. 0.5% concession in rate of interest on the applicable rate of interest on education Loans
for all courses pursued by girl students and is subject to review as per Bank guidelines.
26
14. Installments/interest/EMIs and other charges if any have to be paid on due dates from
time to time.
15. PAN Card of the applicant and Jt. Applicant and Guarantor to be produced for verification
8
.If not available, the same to be submitted before next disbursement.

77
16. Disbursement is subject to production of VISA in case of study abroad.

17. Service Charges, Inspection charges and Out of pocket expenses will be debited as per
Rules of Business, which are payable additionally, as and when debited.
99
18. This sanction does not vest in you right to claim damages against the Bank or its officials
for whatsoever reason.
19. It is the policy of the Bank to mandatorily report to Credit Information Company (CIC) all
cases of delay in payment of dues/installments. Thus, any delay in payment of
dues/installments will lead to adverse remark which will impact the credit score, which in
turn, can affect your ability to raise loans on beneficial terms in future. As such, you are
advised to strictly comply with the repayment schedule.
20. EMI shall stand revised with the changed Rate of Interest.
21. The loan should be utilized for the purpose for which it is sanctioned.
Wherever Loan is sanctioned against Security of immovable properties the following

aspects to be noted:
Page 207 of 212

 Property mortgaged will be insured for full value and full terms with Banks Clause as per
Banks guidelines at your cost. However, customers are free to choose the Insurance
Company.
 Charges payable to CERSAI towards registration of EMT will be recovered
 Property is subject to periodical inspection by Bank officials/authorized representatives.
 Tax Paid Receipt/Khata shall be lodged with the Bank every year till clearance of the entire
liability. It shall be ensured that there are no statutory dues against mortgaged property.
 Depending upon the status of the loan, Bank is at liberty to have the mortgaged property
revalued as per the guidelines and the charges in this behalf will have to be borne by the
borrower/s.
24.2: NEW EDUCATION LOAN SCHEME FOR PURSUING MASTER’S DEGREE IN ABROAD
FROM SELECT TOP RANKING UNIVERSITIES OF WORLD.
A new educational loan scheme is introduced for pursuing Master’s Degree in Abroad from
select Top Ranking Universities of world. The detailed scheme guidelines are as under:
PM
Sl Particulars Scheme Guidelines
No.
1 Scheme Educational loan scheme for abroad studies from select top
ranking Universities.
3
2 Eligibility  Student of Indian National holding valid passport.
:5
 Student should have secured admission from the
select institution.
04
 Student with *minimum score in SAT, ACT, GMAT &
GRE.
*The Minimum competitive exam scores are stipulated as
3
below,
02
SAT- 1250 & above.

ACT- 26 & above.
/2
GMAT
GRE-300 & above.
0
GMAT-650 & above.

/1
3 Enrolled Premier Top 50 ranked universities in World. List enclosed as per

Institutes Annexure.
26
4 Course eligible Master Degree under STEM (Science, Technical, Engineering

and Management) courses.
5 Expenses considered 100% finance on Tuition fees, Living expenses, passage
8
money,
Medical insurance, GIC, Travel expenses.
77
6 Quantum of finance Above Rs.7.50 Lakh.

99
Collateral Coverage Eligible loan quantum
100% & above Min 7.50 lakh, Max no cap

(as per Project Cost)
Less than 100%. Max- Rs.100 Lakh
7 Credit Risk Two CICs of Borrower & Co borrowers.

Borrowers up to CS:3 moderate risk only to be considered.
8 Margin 10% of Loan amount.
Margin may be brought in year on year basis as and when
disbursements are made on a pro rata basis.
Page 208 of 212

9 Collateral Security Collateral Security shall be in the form of Residential /
linked to Delegation of Commercial Land & Building.
Powers & applicable
Rate of Interest. Delegation of Collateral Rate of
powers* security Interest
coverage.
RAH head 100% & above RLLR+1.60%
Circle head – 75% & above RLLR+1.85%

CAC (less than 100%).
CGM/GM-HO- 50% & above RLLR+2.10%

CAC (less than 75%).
RAH head & above authorities up to their delegated powers

are permitted to sanction the Loans. No powers are vested
with branches.
PM
10 Moratorium Period. Course period + 1 year, in case of student secured job
immediately after completion of course then repayment may
be started earlier.
11 Processing charge
3
Collateral Applicable Processing Charges.
security
coverage. :5
04
100% & above 0.50% of sanctioned limit Max-
Rs.10,000.
3
02
Less than 100% 0.50% of sanctioned limit Max-

Rs.20,000.
/2
12 Insurance Life cover and term insurance can be extended to both

student & Co-applicant. Insurance premium may be included
0
along with project cost.

/1
13
Scheme Code Schedule Code Schedule Name
26
112000 3022 RLLR ABROAD 100% COLL 101-EMI

Abroad 3023 RLLR ABROAD 100% COLL HOL-EMI
Education 3024 RLLR ABROAD 75% COLL IOI-EMI
8
loan scheme 3025 RLLR ABROAD 75% COLL HOI-EMI

77
from select 3026 RLLR ABROAD 50% COLL IOI-EMI

top ranking 3027 RLLR ABROAD 50% COLL HOI-EMI
universities.
99
For further details, refer HO CIR IC/442/2022 Dated 08.07.2022.

HO CIR IC/772/2022 Dated 21.12.2022.
24.3 NATIONAL MINORITIES DEVELOPMENT & FINANCE CORPORATION (NMDFC) REFINANCE

EDUCATIONAL LOAN SCHEME FOR THE BENEFIT OF MINORITY STUDENTS PURSUING
HIGHER STUDIES INLAND AND ABROAD.
A new educational loan scheme is introduced to extend the benefits of lesser interest
Educational loan to the students belonging to Notified Minority Community facilitated
Page 209 of 212

under National Minorities Development & Finance Corporation (NMDFC) education loan
scheme with concessional ROI under Education loan assistance for students pursuing studies
in Inland and Abroad. The detailed scheme guidelines are as under:

No.
1 Eligibility a) Student should be an Indian National.
b) Students should have cleared the previous qualifying
exam and selected through Entrance Test conducted by
Competent Authorities.
c) Students belong to "Backward Sections" among the
Minority Community viz., Muslims, Christians, Sikhs,
Buddhists, Parsis & Jains have been notified as National
Minorities by the Central Government under the National
Minorities Commission Act, 1992 amongst the minorities,
preference being given to the occupational group and
women.
2 Purpose Education Loan scheme is provided to pursue professional &
PM
job oriented education inland and abroad for the eligible
students from targeted Minority communities.
3 Income Criteria Financing schemes of NMDFC have been segregated into
3
following two categories with differential quantum of Loan
& interest rates for beneficiaries from different income
groups:
:5
a) Credit Line 1: - Concessional Credit available for
04
beneficiaries with annual family income of Rs. 1.20 lacs in
Urban areas and Semi Urban areas & Rs. 98,000/- in Rural
areas.
3
b) Credit Line 2: - Concessional credit is provided to the

02
section of Minority population, defined on the basis of

“Creamy Layer” criterion of OBC, i.e., with household
/2
income of Rs. 8.00 lacs p.a

4 Nature of Facility Education Loan i.e Term Loan.
0
5 Quantum of Finance Maximum Loan amount per beneficiary for maximum

/1
duration of 5 years course period is: -

- Up to Rs.20.00 Lakhs for ‘Professional & Job Oriented
26
Courses’ in India. (@ Rs.4.00 lacs per annum)

- Up to Rs.30.00 Lakhs for Courses Abroad. (@Rs.6.00 lacs
per annum)
8
6 Rate of Interest a) 3% p.a. for Credit Line 1

77
b) 8 % p.a. for males and 5% p.a. for females under Credit

Line 2.
7 Margin 5% of the total project cost.
99
Margin to be brought in on year to year basis wherever the

project cost is more than the loan sought, as and when
disbursements are made on a prorata basis at the applicable
rates.
8 Disbursement The loan to be disbursed in stages as per the requirement /
demand directly to the Institution / Vendors of books /
equipment’s / instruments to the extent possible.
9 Expenses considered a) Fee payable to college/ school/ hostel.
for loan b) Examination/ Library/ Laboratory fee.
c) Travel expenses/ passage money for studies abroad.
d) Insurance premium for student borrower, if applicable
e) Caution deposit, Building fund/refundable deposit
supported by Institution bills/receipts.
Page 210 of 212

No.
f) Purchase of books/ equipment’s/ instruments/ uniforms
g) Purchase of computer at reasonable cost, if required for
completion of the course.
h) Any other expense required to complete the course - like
study tours, project work, thesis, etc.,
i) Reasonable lodging and boarding charges will be
considered in case the student chooses/ is required to opt
for outside accommodation.
10 Security: The following security provisions are advised by NMDFC:
Sl Loan Quantum Type of Security
No
a) For loans upto 1.Self-Guarantee & Post Dated
Rs.1.00 Lakh Cheques.
2.All loans upto Rs.1.00 lacs to be
covered under CGFSEL Scheme and
PM
premium of 0.5% will be borne by
the bank.
b) For loans Guarantee of one employee of
exceeding Rs. PSU/Govt./Bank or one income
3
1.00 Lakh and tax payee/ Public Representative
:5
upto Rs.5.00 & Post Dated Cheques.
Lakh
04
c) For loans Guarantee of two employees of
above Rs.5.00 Govt./PSU/Bank or two income
Lakh tax payee/ Public Representative
3
OR Collateral by way of Mortgage

02
of landed property/Immovable
Property of not less than the same
value & Post Dated Cheques.
/2
11 Moratorium Period Course period + 6 months or till the beneficiary start earning
whichever is earlier
0
12 Repayment Period Maximum period of five years after the expiry of moratorium
/1
period.
26
13 Scheme Code 101300 (NMDFC- National Minority Development & Finance

Corporation)
14 Other Terms & (i) If the loan account slipped to NPA, Interest will be
Conditions charged as per IBA model education loan scheme + 2%
8
penalty thereon.
77
(ii) Other terms & conditions for availing refinance from

NMDFC:
99
a) Rate of Interest: Banks have to pay to NMDFC: (1% for

Credit line 1) and (2 % for Credit Line 2)
b) Repayment for bank: Repayment to NMDFC by the
bank will be made in quarterly installment over a
period of 8 years after 4 years of the utilization of
loan.
(iii) Preference should be given for Education Loan to
students who have secured admission to Government
Institutions. Education Loan should be extended for courses
with good employment prospects.
(iv) Preference should be given to short duration courses
with high employment potential.
Page 211 of 212

No.
(v) Foreign courses should not exceed 30% of total loans
financed by our bank in a financial year.
The application process flow for above scheme is as under:
The NMDFC has to forward applications to Respective Regional offices (in case of any
applications sponsored by NMDFC). Further, Regional Offices shall forward the applications
to RAHs. Applications should not be forwarded to branches directly by NMDFC.
RAHs will sanction the viable Education loan proposals and send the details of the loans
sanctioned to eligible minority students to the Regional Office, ROs will send the
consolidated list to Circle Office and Circle Office will submit the consolidated list to Head
Office for onward submission to the NMDFC for availing re-finance or advance re-finance
in case of loans yet to be sanctioned.
PM
The head office will send the proposal for availing re-finance/advance re-finance scheme
wise to NMDFC
3
The NMDFC will scrutinize the refinance/advance-refinance proposal submitted by the
Bank and issue Letter of Intent (LoI) to Bank for acceptance
:5
04
After acceptance of the terms and conditions of the sanction and execution of relevant
documents, funds are released to the Bank. Bank need to charge the beneficiaries with
concessional rates as per the scheme guidelines and same has to be communicated to the
3
beneficiaries in the sanction letter and also need to mention in the documentation
02
The operational guidelines to be followed by the Branches/Offices while implementing the

NMDFC Education Loan Scheme:
/2
I. Role of RAHs:
0
1. RAHs to submit disbursed loan accounts financed to target group eligible to cover under
/1
NMDFC schemes as per the scheme guidelines for claiming the refinance from NMDFC.
2. RAHs have to submit the data to respective Retail lending section, Regional Offices in
26
Annexure II (a) for Refinance on quarterly basis within 5 days on completion of quarter.
II. Role of Regional Office:
8
Based on data received from RAHs, Regional Offices to make consolidations of the data in
77
Excel sheet as per Annexure-II (b) signed by Overseeing Executive and Regional Head to be
forwarded to respective Retail lending section at Circle Office within 7 days on completion
99
of quarter.
III. Role of Circle Office:
Based on data received from Regional Offices, Circles to make consolidations of the data
in Excel sheet as per Annexure-II (c) signed by Overseeing Executive and Circle Head is to
be forwarded to Retail Assets Wing, Head Office, Bengaluru. The claim annexures are to
be submitted within 10 days on completion of quarter.
IV. Role of Head Office:
Based on data received from Circles, Retail Assets Wing will scrutinize the data and
onwards submit to Priority Credit Wing for the request to NMDFC for availing advance
refinance/refinance after approval from competent authority.
*****
Page 212 of 212

Retail Lending Policy

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Retail Lending Policy

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R A Wing IG No.

For Internal use

vide HO Circulars IC/316/2023 dated 06.04.2023, IC/326/2023 dated 11.04.2023, IC/339/2023

dated 20.05.2023, IC/460/2023 dated 29.05.2023, IC/480/2023 dated 07.06.2023, IC/484/2023

consolidation of all other guidelines and is updated till 31.07.2023.

Branches/Offices to note that any further modifications/additions would be advised through

RETAIL ASSETS WING

SL CONTENTS SUBJECT PAGE

“Customer Service is Be-all and End–all”

garner larger slice in the retail pie.

place in financing through innovative products and mechanisms, product differentiation,

CHAPTER-I: GENERAL GUIDELINES

(i) M/s.TransUnion CIBIL Limited

of credit proposals also facilitates identification of serial defaulters, multiple borrowing

CICs have categorized the credit information under two groups:

 Consumer Accounts - Borrowal accounts in the name of Individuals

Credit reports under Consumer Segment are available in following variants:

CIBIL/CRIF/Equifax/ Experian Risk Grade Risk Description

Model – Modification in guidelines]

renewal/ enhancement proposals.

 In respect of existing accounts, if the threshold limit as mentioned above is crossed on

7. Points to be noted after obtention of CIR at Branches/Offices:

proprietorship firm and other entities as applicable to commercial segment.

investigation in terms of extant guidelines shall continue to play an important role in

8. Canara Retail Grade:

grade (lower of the score) of two to be considered for CRG.

Grade (CRG) for retail lending schemes shall be as under:

CIC Risk Grade Canara Retail Grade Risk Grade Definition

CRG-Prime* Low Risk – I*

CS:3 CRG – 3 Moderate Risk

However, guidelines on drawing of Credit Information Report shall continue to be applicable

9. Pre-Sanction verification of credentials of applicants through our Bank officials / Vetting

Verification House/ premises where KYC documents like PAN Card,

Voter’s ID, Ration Card, Aadhaar Card, etc. will be physically

given credentials of the customer (Name & address).

SAS package under Deposit module available in CANNET or

CANNET) The required credentials of the borrowers can be verified in

Biometric LoginEnter User Id & Password of

StaffDepositsKYC PAN/Voter Id Verification.

In case of Non-salaried /Business class:

enquiry with the neighbours etc.

Approved plans and permissions can be verified by visiting

verification. satisfactory opinion of customers and veracity of Bank

statements. The required neighbourhood verification shall be

about the applicants residence, length of stay in present

b. Pre-sanction verification of credentials of applicants through vetting agencies along with

process flow as a part of due Diligence.

Activities assigned to Vetting Advantages of Vetting Agencies

Process flow for verification:

applicants with the Employer.

 In addition to the above following points need to verified as under:-

 Name of the ApplicantSole/Joint Applicant/Co-obligant/Guarantor.

If Business Class then sub-activityProfessional/Self-

 Nature of Business & year of commencement

 Whether Trade License/GST/VAT Registration/STAO/Others obtainedYes/No

If Others, details of the same.

If Others, details of the same.

 Satisfactory operations in the unit to be ensured.

If Others, details of the same.

 Vetting agents/officials will check the genuineness of the property by exercising

The following points to be verified as under:-

 General Appearance of the propertyExcellent/Good/Fair/Poor

 Type of LocalityPosh/Upper Middle Class/Middle Class/Lower Middle