RETAIL LOAN PRODUCTS

August
Academy 24, 2017
of Excellence TC Baroda 1
Inventing Methods for Igniting Minds
 General Provision

KYC Guidelines
Age: Main Applicant-21 Years, Co-applicant-18 Years Except
for the case of Education Loan
Employment/ Income Status
Having Stable Source of Income except Pension Loan
& Education Loan.
Repaying Capacity
Nature & Condition of the property:
* Agricultural Land should not be taken as security
* Property under litigation
* Dispute with local authorities
* Family Disputes
* Poor Condition of Property

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 General Provision

Conduct of the account and Past dealings

*Minimum for 6 months
*Satisfactory conduct of repayment of existing loan.
DLP : Up to normal DLP as per rank on specified for
secured/unsecured advances except or as per scheme.
LAP OD against property upto Scale III 25 Lacs
Inspection of Securities
Housing loan-At the time of every disbursement-
construction/purchase
There after once in three years if account is regular.
OD against property once in two years.
Auto Loan yearly- Traders Loan yearly in march and
professional loan.
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 General Provision

Valuation of Property
*to be assessed at prevailing market rates.
*Once in 3 years for BTL, Loan to Doctors/ Professional ODP/NPA A/C.
* Waiver for one Retail Loan which are regular and classified as standard asset.
*Subsequent valuation from another valuer.

Recovery- PDC except advance is self liquidating or deduction of installment is assured

by employer at source.

Deviation- Cases should be referred to competent authority for prior approval through
the R.O. After approval credit decision will be taken as per DLP.

Other Provision:-
* One Retail loan on the same property.
* T & C should be advised to Borrower/ Guarantor in writing and acceptance
should be obtained.
*More than one branch Ascrom data, Borrower wise search utility Programme.
* CIBIL/Account statement.
* USP-Personal accidental Insurance.

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 General Provision

Normal Documents
For Salaried Individuals
*Passport size photograph
*Residence Proof/KYC
*Salary Certificate/ 3 months salary slip
*Form No. 16
For Self Employed
*Passport size photograph
*Proof of office address, shop and establishment certificate
*Lease deed, Telephone Bills
*IT Returns, Financial Statements, Proof of Qualification
where required
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 Realignment of existing Retail Asset Products

BCC BR 101/93 Dtd: 28.03.2009

Realignment of existing Retail Asset Products and Deviation norms w.e.f 01.04.2009
1. Baroda Home Loan- Home Loan, Home loan to NRI/PIOS, AAA, Home Improvement Loans.
2. Baroda Education Loan- Education Loan, Career Development & Skill Development of Construction
workers.
3. Baroda Auto Loan- Car Loan, Two Wheeler car loan to HNI/ Corporates
4. Baroda Mortgage Loan- ODP/LAP/LAP to NRI/Loan to Professional, Marriage Loan
5. Baroda Personal Loan- Personal Loan, Vaibhav Lakhmi, Pension, Defence Pensioner, Earnest Money
Deposit, Consumer Durables, Loan for Laptop-PC, Desh Videsh Yatra Loan
6. Baroda Asray (Reverse Mortgage)
7. Baroda Loans to Doctors
8. Baroda Traders Loan
9. Baroda Loan Against Securities
10. Baroda Advance Against Gold Ornaments /Jewelleries
11. Baroda Traders Loan against the security of Gold
Ornaments /Jewelleries
Two Other Products
1. Baroda Salary Advantage Saving Bank Account
2. Loan against Future Rent Receivables

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 Deviation
Deviation:
All financial deviation involving financial inspect
on Banks PL- Corporate Level only
Non Financial deviation like Exceeding Maximum
Ceiling of Loan Limit, Maximum age of borrower,
Waiver of existing account relationship, Two retail
loan on same property, existing maximum
repayment period, margin norms, income criteria,
competent authority subject to PSR noting on
monthly basis.

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 Charges for Deviation

Charges for Deviation:

Ref Cir No: BCC:BR:101:52 Dtd. 14.02.2009
No power at Zonal/R.O/Branch for waiver of charges

Sl. No Charges Financial/ Non Financial Deviation

01. Home Loan Rs 1500 per deviation, Max- Rs 5000

02. Education Loan Nil

03. Others Loan Rs 3000 per deviation, Max- Rs 10000

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 Baroda Home Loan
Purpose
* Construction/ Purchase of Plot
* Repayment of Loan (Takeover)
* For House/ Flats Constructed/ purchase recently from own source (not prior
to 24 months) to good clients selectively
* Loans for 2nd house for self occupation

Age of Building:
* Not more than 20 years
* More than 20 years but not more than 25 years
* Structural Soundness should be ascertained
* Other 25 Years- Prior approval

Eligibility:
* Singly or jointly (HUF not to be considered)
Loan amount:
* Up to 300.00 Lacs
* For extension- 10 Lacs ( Within total limit of Rs 100 lacs)

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 Baroda Home Loan
Eligible Amount of H/L
Sl. No. Gross Monthly Income (G.M.I) Max. Amount

01. Up to Rs 20000 G.M.I * 36

02. Rs 20000 to Rs 1 Lacs G.M.I * 48
03. Above Rs. 1 Lacs G.M.I * 54

Repayment Capacity:
Sl. No. Gross Monthly Income Max. Amount
(G.M.I)
01. Up to Rs 20000 40 % of G.M.I - Deductions
02. Rs 20000 to Rs 50000 50 % of G.M.I Deductions
03. Above Rs. 50000 60 % of G.M.I - Deductions

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 Baroda Home Loan
Margin:
Cases Income up to Rs. Income above Rs. 20000
20000 p.m. p.m.

Purchase of Plot 20% 20%

House/Flat already
constructed from own 25% 20%
Sources
All Other cases 20% 20%

Repayment:
Up to 25 Years including the moratorium period.
Moratorium period: Max 18 months or 1 month after completition of house.
Present age plus repay period 65 years or retirement age
Exceptional: Repayment may be extended if borrower pledge FDR/ NSCs etc
to ensure continuity of income for repayment.

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 Baroda Home Loan
Eligibility as per Repayment capacity
Salaried
Monthly Income Total Dedeuction
Up to 20000 40 %
> 20000 up to 50000 50 %
> 50000 60 %
Others
Annual Income Total Deduction
Up to 240000 50 %
> 240000 up to 12 Lac 60 %
> 12 Lac 70 %
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 Baroda Home Loan
Rate of interest
Tenure up to 30 lac >30 lac to 75 lac >75 lac
Up to 5 yrs 10.50% 11.25% 11.50%
>5 to 15 yrs 10.75% 11.50% 11.75%
>15yrs 11.00% 11.75% 12.00%

Processing charges
Up to 30lac 0.5% minimum 5000/- + service tax
>30.00lac.0.4% minimum 5000/- + service tax
Take over of housing loan 0.1% + service tax
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 Baroda Home Loan
Security:
E/M exception- other security like FDR / NSCs etc
with an undertaking

Pre Closure Charges

No penalty for part/ full payment from Own
resources

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 Baroda Home Loan

Disbursement
Directly to seller
Cons. After physical verification
Directly to builder or borrower subject to
verification of bill, receipt certificate by valuer.

Insurance
Free Personal accident insurance Coverage

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 Baroda Home Improvement

Purpose
For Repairs, renovations, Improvement/ extension of
existing house, Purchase of furniture, fixture,
furnishing other gadgets such as Fans, Geysers, A/c,
Water Filters etc.
House should not be older than 35 years.
Max. Salaried- 2 times of Gross Annual Income
Other - 3 times of net Annual Income
Amount Max 10 Lacs (5 Lacs for furniture)
Margin 25 %
Repayment Max 10 years
Moratorium Max 6 Months

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 Baroda Additional Assured Advance

Eligibility
All existing H/L customers with satisfactory
conduct/ no adverse features in the account.
Min Rs 25000/- Max 90% of Principal amount repaid
Repayment: Max. period should not exceed the
remaining period of existing H/L.
Security: Ext of EM and/or Guarantee if existing in
H/L
Housing Loan to Staff under Public Scheme is also
available
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 Baroda Housing Loan to NRIs/PIOs
Eligibility:
NRI holding Indian Passport, PIO holding Foreign Passport
singly or jointly.
PIOs means a.) citizen of any country other than Bangladesh,
Pakistan, Afghanistan, Srilanka, China, Iran, Nepal & Bhutan,
he/she any time held Indian passport b.) He or either of his
parents or any of his grand parents was a citizen of India by
virtue of the constitution of India of the citizenship Act
1955.
Having a regular Job abroad in a reputed Indian/ Foreign
Company, Govt. Dept., Self Employed holding a valid job
Contract, Work Permit for the minimum Past 2 Years, or
having a business unit staying abroad for at least 2 years.
Minimum Gross Annual Income e.g. to Rs 5 lacs P.A.
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 Baroda Housing Loan to NRIs /PIOs

Sl. No Case Min. Amt Max. Amt.

01. Housing Rs. 5 Lacs Rs. 300 Lacs
02. Repair Rs. 1 Lac Rs. 25 Lacs

03. Purchase of Plot - Rs. 50 Lacs

Repayment: Max 15 Years

Moratorium: Max 12 Months
Guarantee: Personal guarantee of spouse/ family member residing in
India.
Doc through POA: BCC:BR:100:102 Dtd. 12.04.08
BCCBR:100/150 Dtd. 04.06.08

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 Baroda Mortgage Loan

Purpose: For all Legitimate Purpose

Type: OD/TL
Eligibility
Salaried Professional who are income tax assessee for last 3 years.
Age 21 Max 60 years (Age + Pen. Max 65)
Minimum gross annual Income- Rs. 60000/-
Limit: Minimum Rs 1 lac
Max. Rural Rs 5 lac other Rs. 100 Lac
Income Criteria:
Salaried 30 times of Gross Monthly Income
Others 3 times of Average Annual Income
Co-Borrowers: Spouse-father-mother, sons, Brothers. Brothers wives,
Daughters

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 Baroda Mortgage Loan

Repaying Capacity: 60 % of Gross Income

ROI : 5.25% above base rate @ 15.50 %
Penalty: 2% P.A on overdue amount
Margin 50% of Distress value of Security
Personal Guarantee: Over Rs 10 lacs Third Party Guarantee
Repayment: Loan 84 EMI with Moratorium Max 3 Months
OD:- Minimum Turnover 25% of Limit other reduction in
operative limit Max is 10 year
Processing Charges: OD-0.35% Min Rs.1000/- & Max Rs.50000/-
Loan: 1% with Min Rs 1000/- & Max Rs. 50000/-
Valuation: Property acquired with in last 5 years sale deed
Lending powers: up to Scale III 25 Lac Above Scale III Normal
Lending powers

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 BARODA TRADERS LOAN
01. Purpose Working Capital Development of Shop (maximum 25% of W/C) Non
fund Based facility
02. Eligibility Individual, Proprietorship, Partnership Pvt Ltd. Co., Reqd. Co-Op.
Societies, engaged in trade of any Commodity, goods (HUF & Public
Limited Co. are not eligible)
Business Unit established 25 Years (Minimum)
03. Amount Min. Rs. 25000 Max. Rs. 200 Lacs
20% of the accepted Projected sales or advance value of Security
04. Advance value 60% of realisable market value of Immovable property offered as
security.
90% of Basics FDR
85% of NSCs surrender value of LIC
05. Repayment Max 60 EMI

06. Processing 0.35% of Limit Sanction

Charges

07. ROI Base Rate+3% i.e.13.25 % P.A at Present

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 BARODA TRADERS LOAN
Other Conditions:- Insurance of Property, Stock
Statement 10th of March, Inspection Yearly,
Insurance of Stock optional, Above Rs. 25 lacs
Additional Financial Statement

Take Over Norms-

*Standard A/C, Profit making Unit
*D/E Ratio 6:1, Current Ratio 1.17
*Crisil Rating Minimum BOB-6
*No Reschedulement / Restructuring
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 Baroda Auto Loan
01. Purpose Car Loan/ Car Loan-NRI/ Two Wheeler
Second Hand Car-Two Wheeler (Not More than 3 yrs old)
For Private Use Only
02. Eligibility Age: Min 21 Years Max Salaried 60 Yrs Others 65 Yrs
Min Employment Two Year/ Stable Business.
03. Limit New Vehicle-- Rs. 15 lacs Two Wheeler-- Rs. 1 Lac
Old Car-- Rs. 10 lacs HNI-- Rs. 100 Lacs
HNI Minimum Monthly Salary Rs. 1.25 lacs
Carry Home Min 40% (Inclusive proposed loan) Corporate TNW 10 times
of loan requested)
24 times of G.M.I 3 times of G. Annual Income
Two Wheeler 5 times of Gross Monthly Income
04. Margin Up to 15 Lac 15% Above 15 Lac 20%
Old Vehicle 40% Two Wheeler 10%
05. Repayment New Car-- 84 EMI Second Hand Car 36 EMI
Two Wheeler 60 EMI
06. PDC 12

07. Concession 0.5%- Liquid Security Min 50%

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 Baroda Education Loan

Baroda Vidya
Up to Class XII
Cost of external Coaching/Tuition is not to be considered
Need Based Finance subject to repaying Capacity of
parents
Maximum 4 lacs (With Yearly Sub limit)
Simple Interest during moratorium period
1% concession for girls (w.e.f 01.11.2004)

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 Baroda Education Loan

Baroda Gyan
Graduation, P.G, Professional and other courses in India
Max Amt: Rs. 10 lacs
Margin: Up to Rs. 4 lacs--Nil, Above Rs. 4 Lac 5%
Repayment: Course Period+1 Year or 6 months after getting
job
5 to 7 years after above period
Security: Up to Rs. 4 Lacs Nil, to Rs. 7.5 Lacs-3rd Party
Guarantee
Above Rs. 7.5 Lacs- 100% Collateral EM/Liquid Security
Loan Document: Student+ parents both,
Insurance: Kotak Life Ins-1 time premium
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 Baroda Education Loan
Baroda Scholar
Student Going abroad for Professional/ Technical
Courses
Eligibility: Indian National, Secured admission through merit
based selection process
Maximum Amount: Rs. 20 Lacs
Margin: 15%
Moratorium: Course period+ 1 year or 6 month after getting
job.
Repayment: 5 to 7 years.
Security: Above Rs. 7.5 Lacs--- 100% Collateral

Career Development
Presently having gainful employment
Security: 100%
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 BARODA ASHRAY LOAN
01. Purpose To supplement the cash flow stream of Senior Citizens for
their financial needs
02. Type of Combination of Monthly Annuity Payments and lump sum
Facility payments for up gradation, renovation, etc.
Lump Sum (maximum 20% of total) for exigencies 10%
03. Eligibility Age 60 Years and above, Spouse not below 55 Years
Should be Owner of residential property.
Property should be used as permanent primary residence
fully self occupied property.
04. Maximum Rs 100 Lacs
Amount Margin--- 20% of market Value of security
Borrower may be counseled to keep 5% of limit
Assessed for medical/ Unforeseen financial Requirements
Annuity will be computed considering life expecting of 80
years
Right of Rescission-7 business days
Processing Charges may be waived in loan not availed

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 BARODA ASHRAY LOAN

Repayment
After Last Surviving borrower dies
Commercial properties will not be taken as
security
Valuation
Valuation at the interval of every 5 Years
Age of building should not exceeds 40 years
Interest reset clause at the interval of 5 Years for
fix rate option

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 LOAN AGAINST FUTURE RENT RECEIVABLES

01. Eligibility Owners who have let our their premises to reputed companies/
Institutions PSUs, established commercial organisations.
Landlord of Bank of Baroda Branches/ Office premises/residential
flats/ houses leased out to Bank of Baroda for officers/ Executive
Quarters
Only for residential customers/ not for NRIs.
02. Limit Minimum 1 Lac Maximum 20 crore
Subject to 55% of rent due for unexpired period of lease.
03. Repayment EMI Maximum 10 years or unexpired period of lease.

04. Security Up to Rs. 5 Lac assignment of future rent and third party
guarantee- unsecured loans.
Above Rs. 5 Lacs In addition to the above mortgage of the
leased properties and/or pledge of NSC/KVP etc.
Aggregate value 125 times of Loan Amount.
Tripartite Agreement

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 LOAN AGAINST FUTURE RENT RECEIVABLES

05. Lease Properties are leased under registered lease deed.

Agreement

06. Insurance Of property leased out with bank clause.

07. Sanctioning Up to DLP

Authority

08. Classification Commercial real estate exposure

09. Present ROI 6% above base rate i.e.16.75% at present

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 Baroda Personal Loan

01. Purpose Any Purpose other than speculation

02. Eligibility Confirmed Employee Min One Year Service

Self Employed Professional One year stable business
Insurance AgentMin 5 Years having SB A/C with us.
Account RelationshipMinimum 6 months (With us or other banks)

03. Loan 6 Times, Maximum--- Rs. 2 Lacs.

Pensioner 10 times, Max-- Rs. 1 Lacs
Defence Pensioner 20 times, Max- Rs. 2 Lacs
Consumer Durables/ Laptop, 5 Times of G.M.I or 90%, Max -5 Lacs
Earnest Money Deposit-- 8 Times of G.M.I or 90% Max Rs. 5 lacs

04. Repayment 36 EMI

Consumer Durable, Laptop/PC--- 60 Months
Earnest Money Deposit---Lump Sum in 6 months

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 Loan Against Securities

Against: NSC, KVP, LIC Relief Bonds

Minimum Loan amt-Rs. 3000/- OD-Rs. 20000/-
For KVP Maximum Rs. 1 lacs & Above Rs. 1 Lacs
Regional Head
Margin: 15%---Maturity Period less than 3 Years
20%---Maturity Period more than 3
Years

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 Loan to Doctors
01. Purpose Dev. Of Clinic/ Clinic Cum Residency/ Nursing Home/ Pathological Lab/
Purchase of Medical/ Diagnostic Equipment/ Setting up of operation
theater/ Purchase of Car & Ambulance/ Purchase of office equipments/
Expansion/ Renovation/ Modernisation/ Working Capital
02. Eligibility Individual Proprietorship, Partnership Pvt. Ltd. Engaged in providing
medical Services having MBBS/BAMS/BDS or any degree
03. Limit Minimum Rs. 50000/- Max.R/S.U--Rs. 15 Lacs (W/C Rs. 1 Lacs)
U/M -- Rs. 50 Lacs (W/C Rs.3 Lacs)
Loan Above Rs. 5 Lacs Minimum 3 year establishment
04. Margin Up to Rs. 5 Lacs --- 25% Others--- 15%

05. Repayment OD--- 12 months Subject to Review

Loan Max--- 60 months ( 6 months moratorium)
DSCR 1.25

06. Security Up to Rs. 5 Lacs--- Nil

Above Rs. 5 lacs--- Mortgage/ Liquid Securities

07. Security Immovable Property-- 40%

Margin FDR-- 10% Other Liquid Security-- 15%

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 Baroda Salary Advantage Savings A/C

01. Purpose Overdraft for Family Need

02. Eligibility Salaried Persons Minimum 1 Year Service

Pvt. Ltd Co. Employee may be considered by Regional
Heads
Minimum Salary A/C relationship--- 3 months

03. Limit 90% of Net Salary of last 3 months, Avg. max Rs. 1 Lacs

04. Repayment Account is to be brought into credit once in 60 days

05. Security Third party/Cross Guarantee

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 Important Circular

Scheme Circular no
1. Housing loan master circular 1. BCC/BR/102/26 Dtd 28.01.10
2. Rate of interest retail lending
3. Realignment of retail products 2. BCC/BR/103/41 Dtd 04.02.11
4. Retail lending crisil rating
modules 3. BCC/BR/101/93 Dtd 28.03.09
5. Processing & documentation
charges 4. BCC/BR/101/311 Dtd 12.10.09
6. Home loan margin norms 5. HO/BR/102/207 Dtd 16.12.10
7. DLP for retail loan products 6. BCC/BR/103/5 Dtd 04.01.2011
8. Revised DLP 7. BCC/BR/102/350 Dtd 22.12.10
9. Future rent receivable 8. BCC/BR/102/357 Dtd 28.12.10
10. Baroda Aashray 9. BCC/BR/102/143 Dtd 24.05.10
10. BCC/BR/99/346 Dtd 17.12.2007

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 Important Circular

Scheme Circular no
1. Housing loan master circular 1. BCC/BR/102/26 Dtd 28.01.10
2. Rate of interest retail lending 2. BCC/BR/103/41 Dtd 04.02.11
3. Realignment of retail products 3. BCC/BR/101/93 Dtd 28.03.09
4. Retail lending crisil rating modules 4. BCC/BR/101/311 Dt12.10.09
5. Processing & documentation 5. HO/BR/102/207 Dtd 16.12.10
charges 6. BCC/BR/103/5 Dtd 04.01.2011
6. Home loan margin norms 7. BCC/BR/102/350 Dtd 22.12.10
7. DLP for retail loan products 8. BCC/BR/102/357 Dtd 28.12.10
8. Revised DLP 9. BCC/BR/102/143 Dtd 24.05.10
9. Future rent receivable 10. BCC/BR/99/46 Dtd 17.12.2007
10. Baroda Aashray

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Academy of Excellence Inventing Methods for Igniting Minds