Purpose  

a. To meet the credit needs of trade, commercial activity, other general business, Profession as also for their bonafide requirements.
b. To meet marriage or medical or educational expenses of family members including near relatives.
c. To undertake repairs/renovation/extension to the residence/commercial property.
d. Purchase of consumer durables.
e. To purchase/construct house/flat, purchase of plot.
f. To purchase 2/4 wheeler vehicles.
g. For going on pilgramage/tours/excursions, etc.
h. Repayment of existing loans from other Banks/FIs.

Target customers (Eligibility)

People engaged in trade, commerce and business, Professionals, Self-employed, Prop. Firms, partnership firms, HUFs (excluding NBFC, Trade, partnership firms where HUF is a partner), companies, NRIs, individuals with high networth, salaried people, agriculturists, staff members.

Type of advance

Demand/Term Loan/Overdraft (reducible as per repayment schedule).
Overdraft facility (not reducible as per repayment schedule) can also be permitted to eligible customers (other than salaried people).

Quantum of advance

Calculation of quantum of advance

The sanctioned limit is to be related to the value of security & repayment capacity of borrower, subject to :
i. Salaried employees :

• 48 times of monthly net emoluments (take home salary).
  OR
• 4 times of net annual income with other rental income from property etc. based on Income-tax returns ( Average of Last 2/3 years).

ii. Self-employed/professionals/ individuals engaged in trade/ commerce/ business- 4 times of their net annual income based on income-tax returns ( Average of Last 2/3 years).
iii. Proprietorship/Partnership Firm/Company - Four times of Cash-accruals (i.e. PAT+ Depreciation) as per their Audited Balance Sheet/ P & L Account ( Average of Last 2/3 years).
Note:
1. For individuals :
While fixing the limit , it is to be ensured that the net take home pay (net of EMI [notional EMI in case of non reducible OD] of proposed advance ) is not less than 30% of gross income of the applicant. For Prop. Firm/Partnership firm/Company: DSCR : Min. 1.5
2. Limit prescribed would be subject to a Maximum of 70% in case of salaried employees(50% in other cases) of value of property or eligibility level, whichever is lower.

Margin

Salaried Employees          30% *
Others                             50% *
*On value of property [Lower of Market Value /Distress Sale value/Registration Value as on date of valuation] assessed by Bank's approved valuer.

Rate of Interest
w.e.f.28.07.2011

Repayment upto3 years – 4.00% above Base Rate 14.75% p.a.
Repayment over 3 years – 4.50% above Base Rate 15.25% p.a.
Interest concession for woman beneficiaries 0.25% p.a.[All borrowers to be women]

Repayment

In accounts where regular Overdraft facility is not proposed. :-
Within a period of eight years by way of EMIs. The repayment shall commence from the month subsequent to the month in which final disbursement is made or 6 months from the first disbursement, Whichever is earlier. In case of agriculturists : The repayment will be related to the generation of farm income from crops and other subsidiary activities.

Security

Equitable/Legal Mortgage charge over property in the name of applicant or his/her spouse or parents or third party. The person in whose name the property to be mortgaged stands should either be a borrower/co-borrower or a guarantor.
Note :
a. The property offered should be a residential or commercial building or a plot of land (residential/commercial).
b. The property should be self occupied or leased out to acceptable individuals, government agencies, PSUs, Corporates, etc.
c. Agricultural land is NOT accepted as security for this facility .

Processing Fees

1. Accounts repayable as per Stipulated instalments :-
- One time @ 1% of Loan amount. Min.Rs.3,000/- and max.     Rs30000/-.
2. Overdraft Limit ( not reducible as per repayment schedule ) :
- 0.25% of the sanctioned limit, Min. Rs.3,000/- and Max. Rs.10,000/-     on annual basis.
- Documents charges, advocate fee, architect fee etc. on actual     basis.
Loan agreement copy charges :  As applicable
For Partnership firms/Corporates –
Processing charges will be double that of applicable to individuals
For Rural areas –Processing charges will be 50% that of applicable to individuals in respect of loans availed by borrowers from rural areas from the Rural Branches.
Additional charges for deviations from the scheme norms –One time 25% of the applicable processing charges min. Rs.500/- max. Rs.3000/-

Equitable Mortgage Fee

Charges for deviation from scheme norms

General :
i. Limits exceeding Rs.25 lacsupto Rs.50 lacs - Rs.6,000/-
ii. Limits exceeding Rs.50 lacs–Rs.100 lacs - Rs.15,000/-
SME :
i. Limits exceeding Rs.25 lacsupto Rs.50 lacs - Rs.3,500/-
ii. Limits exceeding Rs.50 lacs – Rs.100 lacs Rs.7,000/-

For every item of deviation from the scheme norms –
One time 25% of the applicable processing charges min.Rs.3,000/-; max. Rs.10,000/- per a/c.