Retail Loans

Housing Loans
Eligibility Individual either singly or jointly. Joint application from same family – Spouse/father/brother etc.
Purpose Construction or Purchase of House/Flat/Plot. Purchase of open plot is to be sanctioned in urban and metro areas only that too approved residential lay-outs. Maximum loan can be allowed 50% cost of the plot or Rs.25 lakh whichever lower. Construction is to be completed within 12 months from the date of loan.
Age of the Borrower Minimum 21 Years & Maximum age limit 65 Years.
Building age Residual life of the asset certified by approved engineer should be atleast 10 years over and above the repayment tenor.
Loan Amount Salaried – Maximum amount of EMI that can be permitted for the proposed loan is to be taken as 50% of net salary. While arriving net salary, IT deduction, VPF and any other temporary deductions may be added back and exclude non-regular income like bonus, arrears etc.
Non-salaried – 65% of monthly average income of preceding 3 years as reflected in IT returns.
Maximum Loan Rural - Rs.25 Lakh, Semi Urban - Rs.75 Lakh, Urban - Rs.150 Lakh and Metro - Rs.250 Lakh
Interest Rate
i)Rated accounts* Limit LTV 75% or Lower LTV > 75%
10 lakh to 30 lakh Base Rate Base Rate + 0.15
Above 30 lakh Base Rate + 0.25 Base Rate + 0.40
ii)Unrated accounts & Below Rs.10 lakh accountsPeriod Up to 25 lakh >25 to 30 lakh > 30 lakh
<= 5 Years B.R + 0.75 B.R + 1.00 B.R + 1.75
> 5-10 Years B.R + 1.00 B.R + 1.25 B.R + 2.00
> 10 Years B.R + 1.25 B.R + 1.50 B.R + 2.25
Repayment Maximum 30 Years
Gestation period Maximum gestation period is 30 months from the date of release of first installment or immediately after taking possession.
Repairs/Renovation Rs.2 & Rs.8 lakh for houses aged up to 5 years & above 5 years respectively. Interest Rate – Base Rate + 1%
Security Mortgage of House/Flat/Plot
Guaran/Co oblig. Co-ob/Satisfactory third party guarantee may be stipulated.
Processing Charges 0.50% of loan amount subject to maximum of Rs.10000/-. However, at present, Bank is not levying processing charges.
Administrative Charges Up to 10 Lac Rs.100, Above 10 L& upto15 L- Rs.150/- Above 15 Lacs Rs.250/- Per quarter.
Pre-payment charges 2% flat on pre-paid amount, where the repayment is fixed beyond 36 months. However, charges may be waived, in case the payment is from own savings / windfall gains.
* Borrower is required to get a minimum credit score of 60 out of 100. Cir.no.261 Ref 53/23 dated 27.09.2012

 

Vehicle Loans
Eligibility Any individual having minimum gross Income of Rs.1.0 Lac p.a for 4 W, Rs.60000/- p.a for 2W & Rs.40000/- p.a for battery operated e-bikes.
Loan amount Eligible loan amount is to be worked out based repayment capacity. For 4 wheeler – the maximum permissible EMI should not be more than 60% net salary in case of employees and 70% in case of other than salaried class. In case of second sale, the vehicle should not be more than 3 years old and 60% of garage value or Rs.5 lakh whichever is lower.
For 2/4 wheelers – 85% of Road Price (includes invoice price, Registration, Life Tax, Insurance & accessories) for salaried class/SME/Corporate borrowers with credit rating “B” and 80% for other borrowers. However the upper ceiling is Rs.1.5 lakh.
Security Hypothecation of vehicle purchased
Guarantee Good third party guarantee acceptable to the Bank.
Net Pay 40% after proposed installment
Repayment Monthly/Quarterly/Half-yearly/Annual – Maximum period is 7 years for new vehicles and 5 years for second hand vehicles.
Interest 4 W- BR+3.25%. For loans repayable beyond 3 Yrs plus TP. 2 W – BR+4.25%. For loans repayable beyond 3 Yrs plus TP.
Proc. Fee 1% of loan maximum of Rs.1000/-. However, at present, processing charges fully waived for accounts directly mobilized by Branches, where facilitation charges are not payable to car dealers.
Pre-payment charges 2 % flat on pre-paid amount, where the repayment is fixed beyond 36 months. However, charges may be waived, in case the payment is from own savings / windfall gains.
Special Campaign (Cir no. 289 Ref 53/17 dated 09.10.2013)
Interest Rate Interest Rate for car loans – BR+o.50% and for Two Wheeler – BR+1%
Term Premia & Processing fee Waived
Facilitation charges Not exceeding 1% of the loan sanctioned and disbursed to be paid to car dealers in respect of proposals which are sourced by the dealer to the Bank.
Others Branch Managers can continue to spend Rs.500/- for each car loan disbursed to entreat the borrowers with refreshments as a friendly gesture from the Bank.

Car Loans to Corporates/Firms: Bank introduced 4 wheeler loans to corporate clients/firms in the month of March 2012. The guidelines are as under:

Parameter Organizations availing credit limits with us Organizations having operational accounts only
Satisfactory conduct One Year Two years
Income Should be Profit making one Minimum 2 lakh profit p.a.
Exposure ceilings Within 6 times of networth Within 6 times of networth
Maximum Loan Rs.50 lakh subject to 3 times of net profit Rs.25 lakh subject to 2 times of net profit
Cir. No. 436 Ref 53/24 dated 24.03.2012

 

Educational Loans (Students in India)
Eligibility Secured admission through test/selection process
Age Criteria 12-30 yrs.
Course All courses including schooling
Loan Amount Need based genuine expenditure related to the course
Maximum Loan Rs.10.00 Lac (Max.2 Loans)
Margin Up to Rs.4 L Above Rs.4 Lac Nil 5 %
Repayment For Higher studies – The maximum repayment period can be allowed up to 10 years for loans up to Rs.7.5 lakh and 15 years for loans beyond Rs.7.5 lakh. In case of vocational courses it is 2 years for loans up to Rs.50000/-; 2 to 5 years for loans above Rs.50000/- & up to one lakh and 3 to 7 years for loans above one lakh.
Gestation period 1 Year after completion of course or 6 Months after getting job whichever is earlier.
Security / Guarantee Up to Rs.4 Lac-Parents co-obligation. Above Rs.4 & up to 7.5 Lac- Satisfactory third party guarantees. Above Rs.7.5 Lac – Collateral security of suitable value & Co obligation of parents.
Rate of Interest Up to 4 Lakh – Base Rate + 2.75% 4 Lakh to 7.5 lakh – Base Rate + 3.75%. However, the interest rate will be Base Rate + 2.75% where the loan is backed by collateral security. Above 7.5 lakh – Base Rate + 1.50% Simple interest during course & gestation period
Exemptions Processing/Administrative/Upfront fee/Pre-payment Charges

 

Educational Loans (Abroad studies)
Eligibility Secured admission in overseas institution
Age Criteria 17-35 yrs
Course Graduation and above
Loan Amount Need based genuine expenditure related to the course
Maximum Loan Rs.20 Lac
Margin Up to Rs.4 Lac Above Rs.4 Lac
Nil 15%
Repayment The maximum repayment period can be allowed up to 10 years for loans up to Rs.7.5 lakh and 15 years for loans beyond Rs.7.5 lakh.
Gestation period 1 Year after completion of course or 6 Months after getting job whichever is earlier.
Security / Guarantee Up to Rs.4 Lac-Parents co-obligation. Above Rs.4 & up to 7.5 Lac- Satisfactory third party guarantees. Above Rs.7.5 Lac – Collateral security of suitable value & Co obligation of parents
Rate of Interest Up to 4 Lakh – Base Rate + 2.75% 4 Lakh to 7.5 lakh – Base Rate + 3.75%. However, the interest rate will be Base Rate + 2.75% where the loan is backed by collateral security Above 7.5 lakh – Base Rate + 1.50% Simple interest during course & gestation period
Exemptions Processing /Administrative/ Upfront fee/ Pre-payment Charges

The education loan borrowers (Inland and Abroad studies) are entitled to avail interest concession @ 0.50% for the students who secure 90% and above marks in 10th or 10+2 qualifying exam for graduation courses and in case of PG courses the student should secure 80% and above in qualifying degree exam. For female students, a concession of 0.50% shall continue to be allowed. However, the effective rate of interest at any point of time after all concessions should not be below the prevailing Base Rate. (Cir no. 382 Ref 53/55 dated 11.12.2012)

Educational Loans to Indian School of Business, Hyderabad and Mohali Students (Cir no. 417 Ref 53/39 dated 02.01.2013) – Indian School of Business (I.S.B.) is one of the premier educational institutes with which we have an MOU for allowing educational loans to its students. Our High Tech City branch and Mohali branches are the Nodal Branches for handling Educational Loans to students of ISB. The concessions offered on Educational Loans to students of ISB for the academic year 2013-14 are as follows:

Eligibility All students admitted for the Post Graduate Programme in Management Courses offered by ISB, Hyderabad.
Amount of Loan Need based subject to maximum of Rs.23.00 lakhs
Margin Minimum 10%
Rate of Interest Base Rate Floating. Presently 10.50%. No other incentives of any sort are admissible, including female student incentive.
Co-obligation Co-obligation of earning parent / spouse
Collateral Security Collateral Security may be obtained but need not be insisted.
Holiday Period Period of study and six months after completion of course
Repayment Recovery of Interest component only during the first two years from commencement of repayment. However it is optional for the borrower to remit over and above the interest also at his/her convenience and without any prepayment charges. Fixing EMI from the third year onwards (after commencement of repayment) – basing on the balance outstanding and the left over tenor of the loan. The maximum repayment period can be allowed up to 10 years for loans up to Rs.7.5 lakh and 15 years for loans beyond Rs.7.5 lakh.
Liability Insurance Liability Insurance is mandatory, but it is optional for the student to purchase the Liability Insurance Policy from any of the service providers.
Exclusive powers of sanction The Branch Managers of Hi-Tech City and Mohali Branch or ZLCC(A) of respective zones are empowered to sanction Education loans upto maximum of Rs.23.00 lakhs for admissions of 2013-14.
Role of Nodal Branches— Hi-Tech City Br, Hyderabad and Mohali Br. Nodal branches should ensure strict compliance with KYC norms for student and parent. Nodal Branches should maintain close liaison with the Institute to monitor the loan account regularly and enlist their cooperation in tracking the student for recovery of loan as well as to establish longstanding relations. The loan accounts are usually maintained and monitored at the nodal branch till closure. However requests for transfer of loan account should be considered, when any borrower, after completion of study, prefers the loan account at a branch nearer to his place of work/domicile.
Role of other Branches Should extend support and cooperation to nodal branches in complying with KYC norms and getting the loan documents executed. Branches can entertain any reference /proposal for Educational Loan that comes from ISB student. Branches can process such applications along with other required documents and forward the same to the nodal branch concerned (Hyderabad/Mohali) with their remarks / recommendations. Branches other than the two mentioned above should not sanction/disburse the Educational Loan for ISB students. The loan processing and sanctioning is centralized at these two branches for the convenience of operation, monitoring, tracking the students and evaluation of repayment performance in respect of these loans. Branch Managers are advised to collect information from Nodal Branches about ISB students who secured placements nearer to the operational area of the branch to market our deposit and fee based products.

Education Loans to children of Staff Members – All Educational Loans to staff children are to be sanctioned by Zonal Offices. Rate of interest is as applicable to general public with a concession of 0.50% (for girl child additional 0.50% concession). If the students have joined an institution with whom we are having MOU with a lower rate of interest should be either MOU or non-MOU with concession whichever is lower. However, the above interest rate shall not be less than Base Rate. Wherever collateral security norms are applicable to general public depending on the limit sanctioned, only for those loans, collateral security of suitable value shall be obtained at the time of retirement of staff members for continuing such loans beyond the service period. On retirement of an employee, loans outstanding in the staff children under education loan should be reviewed and there should not be any overdues in the account. In case of retiring employee is a pensioner, the loan should be transferred to his pension paying branch. (Cir.no.416 Ref 26/57 dt.01.01.2013)

AB Vanitha Vahan
Eligibility Salaried/ professional & self employed Women having min. gross Income of Rs.1.0 Lac pa for 4W - Rs.60000 pa for 2W & Rs.40000/- pa for battery operated e-bikes. 50% of Husband’s salary will be taken for computing eligibility provided he is working and stands as Co-obligant.
Loan amount 4 Wheeler – NEW – Least of Road price minus margin or 3 yrs. Gross income. USED- (Not more than 3 years old) – Least of 60% of garage value or 3yrs.gross income. Max. of Rs.5.00 Lac. 2 Wheeler – NEW- Road price minus margin with a Max. of Rs.60000/-
Road Price- Invoice price, Registration, Life Tax, Insurance & accessories up to Rs.5000 for 4 W & Rs.1000 for 2 W. Margin: Salaried class with salary deduction 15%; SME/Corporate with standard assets with B rating & above 15% and other borrowers 20%
Security Hypothecation of vehicle purchased
Co obligation Father /Husband of the applicant or suitable third party guarantee.
Net Pay 40% after proposed installment
Repayment 4 W- New-12-72 EMI – 4 W- Used-60EMI - 2 W- 12-60EMI
Interest* 4 W-BR+1.50%; Term Premia (TP) for loans repayable beyond 3 Yrs. 2 W-Up to 36 months-BR+3.75%; Above 36 months- BR+4.00+0.25 (0.5% Concession for prompt repayment as back end.)
Pre-payment charges 2 % flat on pre-paid amount, where the repayment is fixed beyond 36 months. However, charges may be waived, incase the payment is from own savings / windfall gains.

 

Special Campaign
Interest Rate Interest Rate for car loans – BR+o.50% and for Two Wheeler – BR+1%
Proc. fee Nil
Other charges Not exceeding 1% of the loan sanctioned/disbursed to be paid to car dealers in respect of proposals which are sourced by the dealer.
Others Branch Managers can continue to spend Rs.500/- for each car loan disbursed to entreat the borrowers with refreshments as a friendly gesture from the Bank.

 

Clean Loan
Eligibility Any individual having repayment capacity. Age not above 75 years in case of Pensioners & 55 years in case of LIC Agents.
Loan amount Salaried Persons: Fresh- 8 Times of gross salary or Maximum Rs.1.00 Lac. Renewals -10 Times or Maximum Rs.1.50 Lac. ZO sanction – 18 times
Non Salaried–ZO Sanction – 2 Times of average annual proven income
Pensioners – 8 Times of monthly Pension Maximum Rs.2.00 Lac.
LIC Agents – 2 Times of average of last 3 yrs. Annual renewal commission for IT Assesses and 50% of average of 3Yrs. Annual renewal Commission for Non IT Assesses. Maximum Rs.2 Lac
Security Nil
Renewals After payment of 1/3rd regular installments
Guarantee/ Co obligation Two third party guarantors acceptable to the Bank. In case of Clean loan to Pensioners – Nominee of the pensioner/family pensioner shall join as Co-obligant / Guarantor. In case of Clean loan to LIC Agents- Spouse or one of the family members and one LIC Agent.
Net Pay 40% after proposed installment
Repayment Maximum 60 EMI & 36 EMI for Pensioners aged > 65 yrs. & LIC Agents
Interest i) Salaried persons with undertaking not to shift salary accounts – Base Rate + 4% up to 36 months and Base Rate + 4% + Term Premia (TP) for loans > 36 months. Other than salaried segment – Base Rate+7%. Term Premia (TP) for loans repayable > 3 Yrs

 

Consumer Loan
Eligibility Any individual having repayment capacity. (Non-Salaried persons- Minimum Income Rs.30000/- pa
Loan amount Equal to 10 Months gross salary- 40 % on annual Income in case of non-salaried persons or 75% of cost of articles, whichever is lower.
Security Hypothecation of goods purchased
Guarantee Good third party guarantee acceptable to the Bank.
Net Pay 40% after proposed installment
Repayment Max.60EMI
Interest Base Rate + 7.50% + TP for loans repayable beyond 3 years

 

Loans against Government securities
Eligibility Employees/ Pensioners / Professional & Self-employed holding Govt. securities (except IVPs)
Loan amount Equal to 75% of purchase value of security including Accrued interest / Surrender value of LIC Policies. Securities where premature cancellation is not available, the date of maturity should be less than 3 years from the date of finance.
Margin/ Security 25 % margin and pledge of receipts.
Guar/co-oblig Limit above Rs.50000/- Co obligation is required
Interest Base Rate + 4% + TP – Repayable in 60 months

 

AB Doctor +
Eligibility Individuals, Partnership firms/ Ltd co. /Trusts. Key promoters should be practicing qualified Medical practitioner and Doctors. Minimum practicing experience should be 2 years.
Purpose To set up clinic / diagnostic labs (x-ray/pathology/songraphic), purchase of medical equipments, Vehicles, Ambulance, medical software, furnishing of nursing homes, working capital requirement for existing nursing homes.
Facility Term Loan / Overdraft or both
Loan amount Maximum 20 lakh
Margin 25% for equipments
Security No collateral security or Third Party Guarantee. To be covered under CGTMSE
Repayment Term Loan – Maximum 84 months – Gestation- 12 months
Interest Base Rate + 3.25
Processing& Upfront 0.50%
Cir.no.8 Ref 53/1 dated 05.04.2012

 

Rent Receivable
Eligible Borrowers Individuals, Sole Proprietorship, Partnership Firms, Public Limited Companies, Private Limited Companies, Trusts etc., owning properties including landlords of our branch premises.
Eligible Properties Unencumbered Residential/commercial Properties at Urban / Metro areas. In case of Semi-urban areas, premises let out to banks may be considered.
Eligible Tenants Reputed PSB/Multinational undertakings, Embassies/consulate offices, Banks, National & International Airlines etc. In case of Private Sector Organizations, the Net Worth of the organization should be above 5 crore.
Purpose Closure of the loan availed for development/construction of the property. In case where the property is constructed with own sources, limits can be considered for the expansion / development of existing business.
Loan amount Minimum loan Rs. 25 lakhs and the maximum loan is Rs. 5 & Rs. 10 crore for individual and other borrowers respectively. In case of proposals from land lords of our bank premises, the stipulation for minimum loan amount is relaxed to Rs.5 lakhs. However, limits beyond Rs. 10 crores falls under MC powers.
Margin 15% of rent receivable towards maintenance and 25% of margin in collateral security of NSCs, Deposits etc.
Security Equitable mortgage of the property of the value not less than 150% of the loan. However, in case of deficit, liquid securities such as NSCs, Bank Deposits etc., can be accepted with 25% margin.
Guarantee/ Co obligation One Co-obligation / Guarantor. However, no Co-obligation / Guarantor for our Bank premises.
Repayment 84 Months (120 months in case of leased premises of our branches) or unexpired certain lease period whichever is less after making adjustments for TDS, Property Tax and 15% rent towards maintenance.
Interest Base Rate + 4.75% + TP
Pre-payment 0.50% on outstanding liability for the unexpired period
Proc & Upfront Fees 1% of the limit sanctioned plus service tax.
Cir.no.44 Ref 26/08 dated 23.05.2011

 

Mortgage Loan
Eligibility Any individuals holding house/flat in their/spouse/Major children’s names. Age 21-65 yrs. Above 60 yrs, jointly with spouse or major children.
Loan amount The maximum eligible loan amount is calculated based on the proportion of EMI to net income. For salaried class – 50% of net salary; For non-salaried class – 65% of monthly average income of preceding 3 years as reflected by IT returns. However, the maximum quantum of loan is restricted to Rs.100 lakhs.
Security/Margin Mortgage of House/Flat – Margin 50%
Guarantee/ Co obligation Third party acceptable to Bank.
Repayment Maximum of 60 EMI
Interest Up to 36 months – B.Rate + 5% > 36 months – B.Rate+5%+TP
Processing fee 1% of the loan amount. Administrative charges as applicable
Cir.no.274 Ref 53/26 dated 04.10.2012

 

AB Anand Jeevan
Eligibility Single or Jointly with spouse; Age – First borrower –Above 60 Years, Spouse- Above 55 Yrs.
Purpose To meet any genuine needs.
Loan amount 90% of realizable value of House/Flat i.e. 70% of Market value. Min. Rs.5 Lac. Maximum Rs.100 Lac. Loan installment payable to the borrower in Monthly, Quarterly, and Lump sum @ Rs.198/-, 588/- & 8335/-respectively per lac for loan tenor of 15 years (max). Lumpsum maximum Rs.15 lac only
Margin Not Applicable.
Security Equitable Mortgage of House/Flat, against which loan is sanctioned. (To be registered with Sub- Registrar)
Guarat/co-obligant Borrower has to execute a Will
Repayment Payable in Lump sum after the last surviving Borrower dies or opt to sell the home or permanently moves out the home.
Interest BR + 1.25%
Pre-payment Allowed without any charges.
Processing& Upfront No
Cir 334 Ref 26/56 dated 28.12.11

AB Equipment Finance: Bank introduced a scheme to purchase New equipment like JCBs, Excavators, Concrete Batch Mixing Plants, Lifts, Steel scaffolding Material etc., to meet the needs of Service Industry including Civil Contractors/Builders. The nature of facility is Term Loan. All the existing borrowers with 2 years satisfactory dealings and in case of others, minimum 3 years experience in the respective field with profit track record are eligible for the above facility. Maximum amount of loan to be disbursed is 90% of the cost of the machinery/equipment. Interest rate for existing borrowers is Base Rate + 2.75% and for new borrowers it is Base Rate + 3.25%. Repayment should be within 24 to 60 months. Wherever the repayment is beyond 36 months, the loan attracts applicable Term premia. Collateral security need not be insisted for both existing and new borrowers. However, suitable co-obligation / guarantee shall be obtained. Processing charges are to be collected @ 0.25% of loan amount. Zonal Managers are authorized to sanction loans under the scheme even for the borrowers enjoying limits under HO powers. (Cir.no.92 Ref 26/21 dated 01.07.09)

Financing to Traders against property: A new scheme is introduced on 1st January 2014 with an objective to improve the credit off take to traders by extending timely hassle free flow of credit to the eligible applicants backed by adequate collateral by simplifying the existing guidelines. The salient features are:

Financing to Traders against property
Eligibility All existing traders of Individuals, proprietary concerns, partnership firms and limited company either existing customer of our Bank or new customers. The applicant should have minimum of 2 years standing and profit making for the past two years.
Facility Term Loan / Secured Overdraft
Loan amount The amount of credit facility shall be above Rs.10 lakh and up to Rs.300 lakh subject fulfillment of margins and security coverage.
Method of assessment Not more than 25% of the assessed turnover and projected turnover should be in line with the earlier performance and be realistic. In case where the credit limit applied is up to Rs.25 lakh and the turnover is up to Rs.100 lakh, the applicant is required to furnish statutory returns like sales tax, VAT etc along with declaration. In case where the credit limit applied is above Rs.25 lakh and turnover is above Rs.100 lakh, it is mandatory that the applicant should submit audited balance sheet.
Security/Margin Liquid security like term deposits of our bank/NSCs/LIC policies with 10% margin. Immovable properties situated in semi-urban and urban areas (land should be non-agriculture and building age should not exceed 30 years) with 25% margin. Rural properties and third party properties should not be accepted.
Guarantee/ Co obligation The owner of the property offered as security.
Repayment Term Loan should be repayable in 60 monthly installments without gestation period. In case of SOD, two years from the date of sanction provided the operations in the account reflect the turnover.
Interest Up to Rs.20 lakh – Base Rate + 2.50%; > Rs.20 lakh Base Rate + 2.75% Term premia 0.25% for term loans repayable > 36 months
Processing fee Term Loan – 1% of the loan amount. SOD – Rs.300 per lakh + service tax to be collected on yearly basis.
Stock statement Once in a six months.
Unit inspection Below Rs.50 lakh – Once in quarter by branch Above Rs.50 lakh – Once in two months by branch
Cir.no.396 Ref 61/02 dated 01.01.2014

Financing to Micro and Small Enterprises (MSE) against property: A new scheme is introduced on 2nd January 2014 with an objective to improve the credit off take to MSE borrowers by extending timely hassle free flow of credit to the eligible applicants backed by adequate collateral by simplifying the existing guidelines. The salient features are:

Financing to Micro and Small Enterprises against property
Eligibility Individuals / entities engaged in manufacturing and/or service activities eligible under MSMED Act 2006. The applicant should have minimum of 2 years standing and profit making for the past two years.
Facility Term Loan / Working Capital (Secured Overdraft)
Loan amount The amount of credit facility shall be up to Rs.300 lakh (both fund and nonfund based limits) subject fulfillment of margins and security coverage.
Method of assessment Not more than 25% of the assessed turnover and projected turnover should be in line with the earlier performance and be realistic.
Limit applied Turnover Requirement
Up to Rs.10 lakh Up to Rs.40 lakh Declaration
Above Rs.10 lakh and up to Rs.25 lakh AboveRs.40 lakh and up to Rs.100 lakh Declaration along with Sales Tax, VAT
Above Rs.25 lakh Above Rs.100 lakh Audited Balance sheet
Security/Margin For loans up to Rs.10 lakh it is mandatory not to insist for security. Liquid security like term deposits of our bank/NSCs/LIC policies with 10% margin. Immovable properties situated in semi-urban and urban areas (land should be non-agriculture and building age should not exceed 30 years) with 25% margin. Rural properties and third party properties should not be accepted.
Guarantee/ Co obligation The owner of the property offered as security.
Repayment Term Loan should be repayable in 60 monthly installments without gestation period. In case of SOD, two years from the date of sanction provided the operations in the account reflect the turnover.
Interest Up to Rs.10 lakh – Base Rate + 1.75%; > Rs.10 lakh – Base Rate + 2.75% Term premia 0.25% for term loans repayable > 36 months
Processing fee Term Loan – 1% of the loan amount. SOD – Rs.300 per lakh + service tax to be collected on yearly basis.
Stock statement Once in a six months.
Unit inspection Once in a Quarter
Cir.no.398 Ref 52/15 dated 02.01.2014

Liberalized Trade Finance: All existing traders (Individual, Proprietary, Partnership and limited companies) in operational area of the branch/Trade Finance Centers Preferably with Sales Tax Registration Certificate whether maintaining account with the branch or not are eligible for working capital credit under Liberalized Trade Finance scheme. Branches can sanction loans as per the eligibility of the borrower subject to a maximum of Rs.100 lakhs. In case of WCTL, the maximum loan is Rs.10 lakhs only. Loans up to 50 lakhs & 100 lakhs attract a spread of 4% & 5% respectively. Audited balance sheet need not be insisted for limits below Rs.10 lakhs. However, it is mandatory for the borrower whose turnover exceeds Rs.40 lakhs per annum. The collateral security norms for the limits up to Rs.10 lakhs are as under:

Age of the business Collateral Security Remarks
Less than 5 years 100% However, in case where the limits are beyond Rs.10 lakhs, branch to obtain 125% of limit as collateral
5 to 10 years 75%
Above 10 years NIL

 

Loan Amount Processing Charges (One time) Quarterly Admn. Charges
Up to 0.25 lakhs Rs.150 Rs.50
> 0.25 – 2.00 lakhs Rs.300 Rs.75
> 2.00 lakhs Rs.300 per lac or part thereof Rs.100

AB Priority Gold Loans – A new loan product as a third variant captioned as ‘AB Priority Gold Loan’ is introduced covering various Micro / Small industries / Service enterprises, Retail Trade, industrial / commercial purposes in addition to the existing Agricultural and Personal needs.

Features of Product
Particulars Loans up to Rs.1 lakh Loans > Rs.1 lakh
Purpose Any genuine credit needs of activities falling under Micro/Small industries or enterprises, Small Business/ Retail Trade
Tenor Maximum 12 months Maximum 6 months
Margin 25% (Loan to value should not exceed 75% of value of gold)
Rate Per Gram As applicable to agricultural gold loans
Maximum Loan Rs.50 Lakh for advances wholly secured with Gold at the field level for Micro and Small Enterprises- Manufacturing, Services. Rs.15 lakh for small business and retail trade.
Purity of Gold The jewellery of purities of less than 22 ct are to be translated into 22 ct and valued accordingly.
Rate of Interest The interest rates are same as applicable to Non-Agricultural Gold Loans or SME whichever is lower.
Delegation of Powers Branch Managers JM-I – Rs.5 lakh; MM-II Rs.10 lakh; MM-III Rs.15 lakhs; SM-IV & above Rs.50 lakh
a) Copy of any document which evidences existence of the unit. b) Declaration on Turnover and purpose of the loan c) Declaration on proper end use of loan proceeds. d) Application for Gold Loan – suitably amended. An additional clause to be incorporated enabling bank to demand accelerated repayment/additional security in case the market price of the gold falls down.
Cir.no.431 Ref 53/27 dated 27.01.2014

 

Rate Per Gram
Purity Up to 1 lakh (for tenor up to 1 year) > 1 lakh (for tenor up to six months)
I. With Hall marking
22 Carat Rs.1900/- per gram Rs.1900/- per gram
21 Carat Rs.1800/- per gram Rs.1800/- per gram
II. Without Hall marking
22 Carat Rs.1950/- per gram Rs.2000/- per gram
21 Carat Rs.1700/- per gram Rs.1700/- per gram
20 Carat Rs.1600/- per gram Rs.1600/- per gram
III. Gold Coins
999.9purity Rs.1950/- per gram Rs.1950/- per gram
916 purity Rs.1900/- per gram Rs.1900/- per gram

Other guidelines – Gold loans should not be extended for speculative purposes. Ornaments subjected to domestic wear and tear only should be accepted. New ornaments should not be accepted unless branch is satisfied with the trustworthiness of the customer. Ornaments with large percentage of stones or other extraneous material should be avoided. As a rule, ornaments like Kante, Addiga, Nagaram, Ragidi should not be accepted. Very small ornaments also should not be accepted. Right relinquishing letter is to be obtained from owner of the ornaments if any names are there on the ornaments. Gold coins of our Bank with tamper proof Assay certificate intact need not be appraised. Re-appraisal of gold pledged with limits of Rs.5 lakh & above is to be done once in every six months. Further, all gold loans outstanding beyond 18 months from the date of loan (including renewals) should be re-appraised. Gold jewels pledged with the branches should be kept in transparent and tamper proof seal packets and the cover should bear the signatures of the joint custodians.

AB Professional Loan: In order to provide simple and hassle free credit facilities to the professionals, Bank introduced a new scheme i.e. AB Professional on 30.01.2012 and the salient features of the scheme are as under:

Features of Product
Eligibility All Practicing Chartered Accountants, Architects, Engineers, Valuers, Management/Financial Consultants, Company Secretaries, Cost Accountants etc., are eligible under this scheme. Individuals, Firms, Limited Liability Firms, Companies or Societies engaged in rendering professional services should be an assessee under income tax at least for the last two years and be a registered member with their respective professional Association/Board/Body.
Purpose To establish/renovate the office premises, Furnishing of office premises, purchase of Tools, Equipments & Books, Expenses relating to travel for professional purposes, Working Capital for carrying out day to day operations. Branches can sanction Term Loan, Overdraft or combination of both depending on the purpose of the loan. The maximum amount allowed under this scheme is Rs.10 lakhs.
Assessment Term Loan – 75% of the cost of asset proposed to be purchased. Working Capital Limit – 75% of the revenue expenditure of the previous year as per Profit and Loss account. Total exposure should not exceed 2 times of average annual income of preceding two years.
Security Hypothecation of existing movable assets and asset/s purchased out of loan and also obtain post dated cheques for initial 18 months. The loans are to be covered under CGTMSE compulsorily. However, CGTMSE premium to be borne by the borrower.
Interest Rate Base Rate + 3.25. Loan attracts 0.50% processing / upfront charges.
Repayment Not exceeding 60 monthly installments with a maximum repayment holiday of 1 year for principal & interest for term loans and one year for working capital limits.
Cir 377 Ref 53/18 dated 30.01.2012

Term Premia (TP): For the loans falling under MSME/CPCD/CIFD/CRE, attracts TP @ 0.25% besides Base Rate + Spread where the repayment period over 36 months and up to 60 months and 0.50% where repayment period is beyond 60 months (including gestation / holiday period) Cir.no.315 Ref 26/43 dated 31.10.2012.

Credit Rating for Personal Banking Schemes: In order to have better credit risk management system, Bank introduced credit rating for Clean / Personal Loans, Vehicle Loans, Housing Loans and Mortgage Loans. For all new loans the rating is based on important parameters such as Age, Qualifications, Residence, Stay, Transferability, Employment/Profession, Gross Income, Spouse employment, No. of dependants, dealings with the bank, Net Take Home Pay, Loan recovery mechanism, Repayment History, Margin contribution and Networth. The prospective borrower is expected to score minimum of 40 marks out of 100 marks to entertain the credit proposal. All existing personal banking schemes of the branches are subjected for annual review during the month of December every year. (Cir.no.163 Ref 26/34 dated 06.08.2010)