Monday, 16 January 2017

Retail Credit Schemes

1.    Dream Car
Purpose

Purchase of new Vehicle/ pre-owned vehicle (<3YRS OLD).
The term Vehicles includes: Car, Van, JEEP, Multi Utility Vehicles (MUVs).
Target Group

 Our existing corporate customers/ Full-time permanent employees who have served at least TWO YEARS and having TWO YEARS of service. /. Eminent professionals/Partnership Firms and Corporate accounts. /. Agriculturists/. Staff/ Officers  of our Bank  with Z O permission./ Pensioners who are drawing pension from our branches
Eligibility
Salaried Person:    Minimum monthly gross income of 25000/-
2. Agriculturist: Minimum 5 acres of irrigated land should be owned.
3. Professional & Self-Employed / Businessmen:  An IT assesse.
4. Retired individuals:  Drawing monthly pension of Rs 15000/=and above.
For full collateral security, IT assessment order / IT return may be waived.
Net take home pay / criteria of at least 40% INCLUDING installments of proposed loan.
5. Firm/ Companies:  Net profit is sufficient to meet repayment of Car Loan.
Margin

1.  For New Vehicle: 15% of the cost of vehicle on Road (i.e. one time registration + first time Road tax & insurance charges etc.)
 2.  For Pre-owned Vehicle –    The loan amount will be restricted to 85% of the “Agreed Purchase Price” or 60% of the Valuation of the Vehicle, whichever is lower. 
Repayment Age
1. Salaried Person: The loan should be repaid at least three months before his date of retirement from service.
2. Other than Salaried person: Loan is repaid before attaining the age of 70 years.
3. Firm/ Companies: should have been in existence for at least 2 years.
Loan Limit

For Salaried Class: Maximum 36 times of Gross Monthly Salary.
For Others: Maximum 3 times of Average Net Annual Income for the last two years as per latest Income Tax Returns
Rate of Interest
With Full Collateral Security: BR+0.25%/     In All Other Cases: BR+0.50%
Pre-owned vehicles : BR+0.75%
Security

Primary : Hypothecation of Vehicle
Collateral: For loans up to Rs. 20.00 Lac: NIL
  For loans above Rs. 20.00 Lac: Guarantee of one person of means. “AND”
Mortgage of House/Flat or / Pledge of NSC/KVP/LIC Policy (Surrender value).
Repayment Period
For New Vehicle: Individuals: Maximum 84 Months  For Firm/ Companies: Max 60 Months
For Pre-owned Vehicle: Max 60 months 


Other condition

1Registration with RTA in Joint name2. Margin is routed through Bank
3. The dealer should be an Authorized Dealer. 4.Affix stamp on BC/DD as  “Issued under Loan Agreement with Name of the Borrower”
Relevant
Circulars
IC No.10589 dated 03/07/2009,11124  dated 31/08/2010,.11165  dated 30/09/2010,11225 dated 07/12/2010,11875 dated 02/05/2012,12186 dated 01.12.2012 & 12192 dated 05.12.2012


2.     AllBank Aashiana Scheme
Purpose
For construction of house/ of plot and construction house/ of house/flat, For renovation/ extension/repair of house & For taking over of housing loans.
Eligibility

Salaried persons, professionals & self-employed, businessman, having

regular income to liquidate the loans
AGE
Minimum age: 21years
Maximum age 70 Yrs. (i.e., Age by which the loan should be fully repaid)
Rate of Interest
Up to Rs 300 Lacs è  BR
Above Rs 300 Lacs è BR+0.25
Loan Amount
Maximum: – Rs. 5 crores
For salaried persons:
1.If age of the applicant is less than 45 yrs , up to 72 times of Gross salary
2.If age of the applicant is more than 45 yrs , up to 60 times of Gross salary
3.Total deductions including our EMI up to 60% of Gross Salary
For others:
1.If age of the applicant is less than 45 yrs , up to 6 times of Gross Annual Income
2.If age of the applicant is more than 45 yrs , up to 5 times of Gross Annual Income
 3. Total deductions including our EMI up to 50% of AVERAGE GROSS MONTHLY INCOME.
Margin
Up to Rs.30 Lac -10%
Above Rs.30 Lac up to Rs.75 Lac—20%



Project Cost
1.Purchase price of land/house/flat
2.Cost of construction/renovation/extension (If applicable)
3.Interest accrued during moratorium period
4.Premium of Grih Mangal Scheme
5. Cost of installing Rooftop Solar PV.
 6. Stamp Duty where project cost is <10 Lacs
Repayment Period
For both salaried persons &others:
Remaining period in attaining the age of 70, maximum 30 years.
EMI should be such  that net take home salary as  stipulated to be maintained
Moratorium Period
Category
Maximum Period
construction of house ( land is Owned)
18 months
Purchase of Flat under construction
24 months  / 36 months
 for specific Housing Projects.
Purchase of semi-finished house /
 old house and furnishing / modification / repair of the house
12 months.
Repairing/furnishing of house / flat
3 months.

Loan  repayment options
EMI/PMI/BULLET REPAYMENT
PMI option details :
80% of EMI for first 5 years
90% of EMI for next 5 Years
EMI + shortfall for balance amount & remaining period.

Security

Equitable/Registered mortgage of the property  OR
Pari-Passu / Second charge over the property if the borrower (salaried person) has already availed loan from his/her organization.
Processing Charges
As per HO IC 13999
Prepayment charges
NIL
Others
Utilization of loan for purchase of land will be restricted to 60% of the sanctioned loan or 85% of cost of land whichever is lower

3.    All Bank Credit Loyalty Benefit (ABCLB) Scheme.
Purpose
Any purpose, except for speculative purposes.
Target Group

Existing Housing Loan Borrowers / All Bank Property term loan Borrowers who have completed Minimum regular repayment of 36 months of the existing term loan as per original sanction terms.
Loan Amount

For Housing Loan Borrowers:
The existing loan outstanding and proposed loan both should not exceed 75% of the market value of the property...
For Borrowers under AB Property Scheme:
50% of market value in case of loan against commercial / residential property.
40% of market value in case of loan against open plots.
Repayment Capacity and Tenure of Loan

salaried persons :
The loan shall be closed before retirement. (With a Provision of 5 years extension subject to take home pay).
The loan installments (including proposed) should not exceed 60% of the monthly gross salary.
other than salaried persons :
Ø  Loan should be closed before the age of 70 yrs.
Ø  Total deductions up to  60% of monthly cash generation as per ITR + Depreciation as per Audited Balance sheet
Gross deductions 70% (for HNIs) 
For AB Property Loan Borrowers:
Total deductions not to exceed 60% of monthly cash generation as per ITR            
Rate of interest
For Housing Loan BR+1.00%  & AB Property BR+2.50%
Repayment Period

FOR HOUSING LOAN BORROWERS:
Salaried Class: Remaining period up to the date of retirement or 25 years, whichever is less
Non Salaried: Remaining period up to attainment of 70 years of age or 25 years, whichever is less.
FOR AB PROPERTY LOAN BORROWERS:
Individuals / Firms / Companies / Others: Maximum 9 years.
Moratorium
NIL
Security

Supplemental Mortgage of the property offered as primary security in the existing loan account.
Other Conditions

Fresh legal opinion and NEC are to be obtained from other panel lawyer.
Search with CERSAI for existing mortgages
Inspection irregularities, if any to be rectified.
Fresh valuation is to be obtained.
No fresh Borrowers are to be added
No other property should be included,
Visit to the property is to be done by two officials
4. Housing Finance Scheme for NRI / PIO
Target Group 

NRIs holding Indian passport or PIOs holding foreign passport   or
 Close relative of NRI / PIO like – Spouse, Father, Mother, Son and daughter can be the joint borrower even if they are the resident of INDIA having future interest in the property.
Purpose

For construction of house/ of plot and construction house/ of house/flat, For renovation/ extension/repair of house & For taking over of housing loans.
Eligibility
(Employment status)
Must be employed/self-employed or having a business unit and staying abroad at least for 1 years
Eligibility
 (Income / Remittances) 

Must have minimum gross annual income equivalent to Rs. Three Lacs per annum. OR
Must have minimum gross remittance equivalent to Rs. Three Lacs per annum in his NRE/NRO/FCNR during last three year.
Eligibility (Age)

Age minimum 21 years.
Borrower’s Age  plus repayment period  not  beyond 60 Yrs of age
Rate of Interest

Up to Rs 300 Lacs è  BR
Above Rs 300 Lacs è BR+0.25
    Up to Rs 500 Lacs
Loan Amount
Rs. 5 lacs to  Rs 500.00 lacs
Salaried  Persons
a)    As on date of application, If the age of the borrowers/ co-borrowers is less than 45 years
1)    In case of salaried persons, the Loan amount will be restricted to 72 times of monthly gross income / salary.
2)    In case of others, the loan will be restricted to 6 times of the Gross Annual Income as per IT Return/ Audited Financials.

b)    As on date of application, If the age of the borrowers/ co-borrowers is 45 years & above
1)    In case of salaried persons, the Loan amount will be restricted to 60 times of monthly gross income / salary.
2)    In case of others, the loan will be restricted to 5 times of the Gross Annual Income as per IT Return/ Audited Financials

Professional or self Employed Persons – Eligible loan amount will be higher of any of the following.
a)    6 times of Gross Annual Income as per Income Tax return if filed in that Country.
b)    2 times of minimum yearly Inward Remittances in NRE/NRO/ FCNR account during the last three year.
Total deductions including EMI of proposed loan should not exceed 50% of the amount taken for calculating eligible loan amount.
Financing for Purchase of Land Loan for purchase of land will be restricted to 75% of the cost of land or 60% of the permissible amount of total loan, whichever is lower.
Margin
25% of Project Cost ( Same as in Aashiana Scheme)
Moratorium Period
construction of house ( land is Owned) / flat- 18 months
In other cases- 3 months after last disbursement
Interest is to be served during moratorium period.
Security
Equitable/Registered mortgage of the property
 Personal Guarantee of spouse and one other person of means and standing and residing in INDIA acceptable to the Bank.
Processing & Other Charges
As per circularized instructions.

Prepayment charges:
NIL
Papers to be submitted to Bank
Copy of passport with valid visa stamp.
 Valid work permit
 Employment contract. &  Last salary certificate
proof of income of self employed /businessmen
 Details of previous employment
 Bank statement for twelve months. Overseas Bank  Statement  showing salary and savings, if any
 Irrevocable Power of Attorney in respect of applicants who propose to authorize a third party to execute the documents/complete the mortgage formalities/avail the loan installments.

5. Premium Housing Finance scheme for High Net worth Individuals (HNIs)
Purpose : Same as in Aashiana Scheme
Eligibility:  High Net worth Individuals.
Owner of the property, having no income JOINTLY with close relatives i.e. father/mother/spouse/ son / daughter having future interest in the property.
Repayment Period :
Before retirement Age for salaried class & 70 years for others.
No Age criteria if the Land Owner has no income.
Margin: Minimum 25% of Project cost.
Sanctioning authority may relax margin by 10%.
If the Plot is owned & Loan is required for construction, 50 % of the present value of the plot treated as margin.
Margin at all stages has been contributed proportionately.
Project cost  :
Purchase price of land/house/flat.
Cost of construction/renovation/extension
Stamp duty and registration charges as applicable.
Accrued interest amount of moratorium period
Repayment Capacity
Total deductions including EMI of proposed loan will be allowed up to 70 % of Gross Income.
Maximum 30 years or remaining period in attaining the age of 70 or Retirement age.
Rate of interest : BR +0.50%
Moratorium  Max 24 months
Loan Amount:  Rs 5.00 Crores to Maximum Rs 25.00 Crores.
a)    As on date of application, If the age of the borrowers/ co-borrowers is less than 45 years
1)    In case of salaried persons, the Loan amount will be restricted to 72 times of monthly gross income / salary.
2)    In case of others, the loan will be restricted to 6 times of the Gross Annual Income as per IT Return/ Audited Financials.
b)    As on date of application, If the age of the borrowers/ co-borrowers is 45 years & above
1)    In case of salaried persons, the Loan amount will be restricted to 60 times of monthly gross income / salary.
2)    In case of others, the loan will be restricted to 5 times of the Gross Annual Income as per IT Return/ Audited Financials.
·         Income of father/mother/spouse/ son / daughter etc can be clubbed for calculating eligible loan amount...
·         Expected rental income less taxes, cess etc. payable can be added to gross income.
Depreciation can be added back in income to compute net annual income (NAI) of the borrower
Other Income added :
1. Income of  father/mother/spouse/  son  / daughter etc
2. Expected  rental income  less taxes,  cess  etc. payable
Depreciation can be added back in income to compute net annual income
 Guarantee
Personal Guarantee of spouse or one person of means and standing acceptable to the Bank.
Guarantee can be waived by the sanctioning authority considering the status & financial standing of the applicant.
Security
Equitable/Registered mortgage of the property
                                   
Processing & Other Charges: As per circularized instructions.
(0.20% Min Rs 91,715/-)
Prepayment charges: Nil


6. AllBank Rent Scheme
1. Purpose: Meeting business / personal needs but not for speculative purpose.
2. Target Group: Owners of the property who have let out the same to reputed companies/Firms/Organizations etc...
Owner of the property who have rented out their premises to Allahabad Bank are also eligible.

3.    Age of the Building
Authority                    Age allowed
Sc III & IV                   15 YRS
Sc V/VI                       20 YRS
FGM               25 YRS
Subject  to obtaining  of an approved engineer’s  certificate, certifying the structural soundness of the building and residual life (should not be less than 15 years) of the building
4. .Rate of Interest: BR+4%
5. Loan Amount: Minimum: Rs.1.00 Lac. & Maximum: Rs. 200.00 Crore

6. Discretionary Authority
SCALE  IV – 50 LACS
              V – 200 LACS
             VI– 300LACS

7. Assessment of Loan mount:  MPBF calculation will be as under.
Ø  Gross rent / Service charges receivable
Ø  LESS (TDS+ Service Tax if any + Advance rent/Security Deposit if any + Annual Maintenance Charges if any + Other Taxes + Other Deductions if any
Ø  NET RENT receivable
Ø  Less 10% margin on net rent
Ø  Amount of rent available for servicing of loan (A)
Ø  Less Gross Interest for the loan period (B)
Ø  MPBF : (NPV OF A)                     (A-B)  
Loan amount will be assessed in such a way that it is repaid within the residual lease period or maximum 120 months,

8. Repayment period:
Unexpired period of lease/ Agreement, Maximum 120 months.
Repayment will be through EMI/ Stepped up/ variable EMIs in consonance of rent as per the escalation provision in lease agreement/agreement.
Repayment will start from next month of the date of disbursement.

9. Security:
PRIMARY: - Assignment of Future cash flow/receivables including lease rentals, service charges, Agency Commission, Minimum Guaranteed Amount etc.
COLLATERAL: -
Equitable Mortgage/ Pari passu charge of relative immovable property having market value not less than 125 % of the proposed loan.
If mortgage of relative property is not possible the mortgage of any other property with market value not less than 150% of the proposed loan be insisted.         (Or)
100% value of NSC/Bank’s own deposit etc.     (Or)
125% cover partly by immovable relative property and partly by security such as NSCs, Bank’s own deposit etc.
Open Land as a collateral on the condition that Land is not an agriculture land/ acquired on the basis of partition deed), Further, Land is identifiable, situated in residential/ commercial area and easily marketable only when  Land is rented for factories, where temporary structure is created( or)
In certain case, where it is not possible to mortgage relative property, for any valid reason whatsoever, another property in shape of land may also be accepted as security.
General Conditions
The mortgaged property should be insured for fire & earthquake at borrower’s cost.
The bank should be selective in considering the proposals under the scheme as it is dependent upon various factors related to tenants. Their financial health and also their desire to continue with the lease which are normally having clause for discontinuance.









7. Education Loan Scheme
 
1.Purpose:
 The Educational Loan Scheme   aims at providing financial support    to meritorious students.

4.    Student’s eligibility :
    Indian National secured admission to a higher education course  in  recognized  institutions  in  India or  Abroad  through Entrance Test AFTER HSC (10+2)
 Where the admission  is   on the marks  scored ,then  marks for loan eligibility is 50%
Meritorious Students admitted under management quota are eligible for loan.
 Courses eligible
Studies in India
Approved courses leading to graduate/ post graduate degree and P G diplomas conducted by recognized colleges/ universities
You may  log on to the following websites  for gathering information ww.ugc.ac.in, www.aicte.org.in, www.education.nic.in

 Studies Abroad
Graduation:
For      job       oriented professional/   technical courses   offered by reputed universities.
Post graduation:
•      MCA, MBA, MS, etc.
•      Courses conducted by CIMA- London, CPA in USA etc.
•           For detailed information pertaining to studies abroad, the field functionaries may log on to the following website www.webometrics.info (indicative only)

5.    Age :
There is no minimum specific restriction with regard to the age of the student to be eligible for education loan

6.    Rate of Interest:
Rate of Interest is Institution specific.
Simple rate of interest will be applied during course and
Moratorium period (up to commencement of repayment).
1% interest concession, if interest is serviced during the study period.
0.50% interest concession is applicable for girl students


7.     Loan amount:
Studies in India: Maximum Rs.20Lac.
(quantum of finance is as per Institution in the enclosed ANNEXURE I, II & III)
Studies in abroad: Maximum Rs.50Lac.
Maximum up to Rs.50 Lac. (ANNEXURE-IV)
 Expenses Considered for Loan
1) Fee payable to college/ school/ hostel*
2) Examination/ Library/ Laboratory fee
3) Travel expenses/ passage money for studies abroad
4)  Insurance premium for student borrower, if applicable
5)Caution  deposit,  Building fund/refundable  deposit  supported  by Institution bills/receipts**
6)Purchase of books/equipments/  instruments/uniforms***
7)Purchase of computer at reasonable cost, if required for completion of the course***
8)Any other expense required to complete the course - like study tours, project work, thesis, etc***
* Reasonable lodging and boarding charges will be considered.
** Not to exceed 10% of the total tuition fees for the entire course.
***The maximum expenses  under 6, 7 & 8 may be capped at 20% of the total tuition fees payable for completion of the course
Management Quota
In respect of admission through Management Quota, the fees to be considered should be within the fees structure as approved by the State  Government or a Government approved Regulatory Body
Reimbursement of fee paid at the time of counseling.
Bank will treat it as part of the project cost and reimburse this amount if applied within 60 days from the date of such payment.

8.    Margin:
For loan up to Rs 4 Lacs: NIL
For loan above Rs.4 Lac:
            (I)Studies in India: 5%
            (II)Studies abroad :15%
Scholarship/Assistantship to be included in Margin.
Margin Money to be brought on year-to-year
Basis and disbursements are made on a pro rata basis.
 Rate of interest
For IIM Students*           BR+1.50%
For IIT Students*             BR+2.00%
Other premier Institutes *  BR+2.50%
Other Recognized colleges BR+3.00%
For Others/ Management Quota/ Abroad Study
Upto Rs. 4 Lacs          BR + 3.00%
Above Rs. 4 lacs to Rs. 7.50 Lacs   BR + 2.80%
Above Rs. 7.50 lacs                          BR + 2.50%

9.    Repayment:  
Repayment Holiday/Moratorium are Course Period + 1 year.
Provision for increasing moratorium due to under-employment / unemployment, can be maximum up to three times (6 months at a time) during the life cycle of the loan.
MORATORIUM can be extended for reasons beyond the control of applicant suitable extension may be granted.
Extension of time for completion of course may be permitted for   2 years if student is unable to complete the course in time.
No prepayment penalty

 Repayment period   :15 years 
The accrued interest during the repayment holiday period to be added to the principal & EMI is fixed.

Processing Fee
1) For studies in India:
· Up to Rs.10 Lac – nil & Above Rs.10 Lac – 0.15%, max Rs.3000/-.
2) For studies Abroad:
· Up to Rs.20 Lac – nil 
· Above Rs.20 Lac – 0.10%, max Rs.5000/-.
Mortgage Charges: Actual expenses, if any, will be borne by the Student / Parent or Guardian.

10. Security:
Assignment of future income of the student and Co-obligation of parents/guardian.
For loan up to Rs 4 Lac: No other security.
For loan above Rs 4 Lac: security is institution specific.
Meritorious Students
The HLCC (GM) may waive the security criteria for exceptionally meritorious / deserving students on case-to-case basis.



9. Documentation:
a) Pronote b) Agreement of Term Loan c) Guarantee by the Guardian d) Deed of ratification on attaining majority. e) AOD f) Income Certificate of the parents
Student is not in a position to attend the Branch should  obtain An irrevocable Power of Attorney & A separate letter from the student confirming issue of POA on same date & confirming the contents
Student in Abroad èExecute POA favoring parents & Notarize è authenticated by Indian Consulate
General/Indian Embassy Official èstamped before 3 months after receipt in India
For every installment, the student will subsequently send a letter addressed to the Branch, confirming that he has received the sum from his parent/guardian as Power of Attorney holder.

10.  Appraisal/Sanction/Disbursement
Application   rejection only by the next higher authority.
The loan should be disbursed in stages
While appraising the loan the future income prospects of the students only will be looked into.
Students may apply à either at the bank branches near to the residence of parents or to the educational Institution.
 However, after the loan is sanctioned, the cases be transferred to the bank branch near to the Institution for follow up with student / Institution.

11. Others:
With the consent of the student, Bank will arrange for group life insurance cover for the students availing Education Loan.
The loan documents would be executed by the student and the parent /guardian as joint-borrower in case of married person,    co-obligator can be either spouse or the parent(s)/parents-in-law.
Education Loan would preferably be sanctioned through branches/CRBBs nearest to the place of residence of parents.

·         [Ref : 13950/Retail Credit/2015-2016/09 dated 03.10.2015]


8.    AllBank Mobike Scheme
Purpose: For purchase of a new engine driven two wheeler.

Eligibility :Salaried persons (minimum gross salary of Rs 15000/-)
Professionals and Self Employed persons, Businessmen, Agriculturists.
Age limit: Persons who are 21 years above up to 60 years can avail this facility.

Rate of Interest : BR +3 %

Loan Amount: Maximum Rs 100,000/- including cost of insurance and Road Tax.
Min Gross Salary Rs15000/-
For others Annual Income >180000/-
Monthly take home salary / Income taking into account all deductions and including the proposed loan should not be less than 40% of the monthly gross salary / monthly average income.

Eligible Loan Amount : Employees : Max 6 times Gross Monthly Salary
For Others: Max 6 times of average Gross Monthly Income of last two years.

Margin: Margin is 10% of total cost on road.

Repayment Period: 48 months through EMIs.
In case of salaried persons, the loan should be repaid 3 months before the date of retirement.

Security
Hypothecation of vehicle and registration with RTA with Bank Clause.
In case where recovery is tied up with Salaries, a guarantee from the spouse is obtained.
In other cases, Guarantee from spouse and Guarantee from 3rd party of suitable means.
In case of loan is granted on the basis of security already held with the bank, guarantee from 3rd party should not be insisted upon.

Prepayment Fees
No foreclosure charges / pre-payment penalty on Floating Rate Term Loans sanctioned to individual borrowers.
2.25% of outstanding balance only in case of takeover.


9. Commercial Vehicle
1. Target group:
All Transport operators working individually or as partnership Firms, Companies & Associations with not more than 6 members and fulfilling the criteria to be classified as Micro or Small enterprise as per the definition of RBI  from time to time and also covered under priority sector.
2.Age:
Individuals -21-65 years
Partnership Firms, Companies & Association of persons – should have been in existence for at least 2 years.

3.Nature  of Facility:
Term Loan and or Over draft.
Overdraft
For working capital requirement of the transport operator to meet Expenses related to Repair & Maintenance. Maximum Rs 30000/- per vehicle with a ceiling of Rs 3.0 Lacs. Overdraft facility will be reviewed annually and will be liquidated with the liquidation of term Loan.

4.Loan Amount:
Maximum Rs 200.00 Lac
 (Term Loan+ Working Capital)

5.Margin:
Term Loans: For loans up to Rs.10 Lac – 10% of the Project cost
For loans above Rs. 10 Lac – 20% of the Project cost
Working capital:25%

6.Project Cost:
Project cost will include cost of chassis, cost of Body,
Cost of spare and stepney if not supplied with the vehicle.
One time registration plus first time Road tax
Insurance charges for first year.

7.Repayment Period:
Based on cash flow & DSCR, maximum 5 years including moratorium period, can be extended up to 7 years in case of Heavy Commercial vehicles.
Maximum 18 months in case of loan for purchases of tyres, spares and meeting cost of repair & maintenance of vehicle.

8. Repayment:
 By EMI after moratorium period.

 9.Moratorium Period:  Up to 3 months
10. Processing fees: As per circularized instructions.
 11.Other Charges:
Documentation Charge, Mortgage Charge & inspection and Supervision charge will be as per circularized guidelines. Concession in service charges including processing fees will be applicable as per the extant guidelines of Bank.
12. Primary Security:  Hypothecation of the vehicle.
13.Collateral Security & Guarantee:
For loans up to Rs 10 Lac:
NIL (Irrespective of whether loan is covered under CGTMSE or not.
However, Bank will cover such advances under CGTMSE scheme.
         For Loans above Rs 10 Lac up to Rs.100 Lac:
An option to the borrower shall be provided between Coverage under Credit Guarantee Fund trust for Micro and Small Enterprises (CGTMSE) or providing Equitable Mortgage of property, Pledge of Banks deposit, NSC, KVP etc. covering full value of loan.
Loans are to be covered under Credit Guarantee Fund Trust for Micro and Small Enterprises (CGTMSE) Scheme.
If coverage under Credit Guarantee Fund Trust for Micro and small Enterprises(CGTMSE) is not available Equitable Mortgage of property, Pledge of Banks deposit, NSC, KVP etc covering full value of loan.
        For loans above Rs.100 Lac and below Rs.200 Lac:
The Loan amount should be covered by the personal Guarantee of TWO Guarantee whose net worth should cover the entire Loan amount.
Suitable Collateral Security in the form of Equitable Mortgage of Property, Pledge of Banks deposits, NSC, KVP etc. on the basis of merits of the case may be obtained at the discretion of the Sanctioning Authority.

  14.Registration of Vehicle:
The vehicles will be registered with RTO in the joint names of the borrower & the Bank. Copy of the RC will also be kept in record.

 15.Insurance of Vehicles:
Comprehensive insurance of the vehicles with Bank’s clause at the borrowers cost till pendency of the loan.

16.CGTMSE charges:
Charges payable to CGTMSE such as Guarantee fees & Annual Service Fees will be realized from the borrower at the prescribed rates.

17.Disbursement:
The requisite margin should be realized by the Branches / RBBs from the borrower prior to issuance of Cheque / Draft of the dealer. The relative cash memo etc. will be retained by the Bank along with other security documents.
The dealer should be an Authorized Dealer of the vehicle being purchased.

18. Interest: Please refer the latest applicable guidelines.

19.Others:
“FINANCED BY AND HYPOTHICATED TO ALLAHABAD BANK____________BRANCH” MUST BE BOLDLY PRINTED ON THE BODY OF VEHICLE on a prominent place.


10. All Bank Fleet Finance Scheme
Purpose
To finance new four-wheelers viz,  trucks/tankers/trailers/tippers/luxury buses and car etc
Nature of Facility : TL & CC

Target  Group
1. Minimum existence of 3 years in the line of activity. 
2.  Surface Transport operators owning more than 10 road worthy vehicles.
Eligible Borrower Segment :
     Self Employed ,  Proprietorship &Partnership Firms, AOP, Companies, Educational Societies, Trusts, Commission Agents (Not Brokers), Traders (in case of individuals minimum age will be18 years and maximum of 60 years.
Eligible amount of finance  : Cost on Road
(Cost of chassis , body building , Road Tax & Insurance)
Quantum of Finance :
Min: Rs.200.00 lacs and MaxRs.500.00 lacs( TL+CC)
CC 25 % or 125 Lacs which is lower
No of Vehicles : No restriction
Margin :
Term Loan – Chassis Cost - 20 % Body Building – 30%
     Road Tax and Insurance – 10%
Cash Credit – 25%

Repayment
Term Loan :
 7 years in EMIs & Moratorium of 3 Months
PDCs and or ECS Mandate are to be obtained.
            Cash Credit : Repayable on demand, renewed every year 

Security  
PRIMARY
Hypothecation of Assets financed in favour of Bank.
Registration of charge with ROC in case of corporate.
COLLATERAL:
Unencumbered vehicles (not older than 5 years)   OR immovable properties for a value not less than 25% of the loan amount.
Personal Guarantee of Partners/Directors.
Insurance : Comprehensive insurance, with Bank’s clause
Registration of Vehicle :
The vehicle shall be registered with RTO in the joint names of the borrower and Bank.

General Eligibility Criteria  :
  The firm/promoters should have National/state permits.
In case of Trucks the firm should be IBA approved
Chief promoters to be IT Assesses who have filed IT return for the last 3 years
Satisfactory record of dealings with present bank/FIs/ NBFCs ( at least 2 years)
FINANCIALS
            Sales Turnover –Increasing trend in the last two years
            Profit-The cash generation of the firm in the past two years should at least be Rs.25.00 lakhs
              AV.DSCR-Minimum 2 (Gross DSCR)
            Current Ratio -1.33 minimum
            TOL/TNW-Maximum 2.75
            Receivable Level-Not more than 4 months
            Route contract in hand-50% of the targeted annual income
Use of Vehicles: Primarily be for commercial purpose only.

Other conditions
List of Existing Vehicles duly signed by the authorized signatory with details such as Make, Model, Registration, whether free of finance, Name of the finance co etc.
RC copies  of at least  50% of free vehicles with tax receipts  or valid
Only new vehicles to be financed.
No reimbursement of the vehicle acquired prior to the sanction of loan.
Collateral / Guarantee for securing the facility to be explored on case to case basis.
FINANCED AND HYPOTHECATED TO ALLAHABAND BANK---------------------- --- BRANCH must be boldly painted on the body of vehicle on a prominent place.


11. AllBank Trade Scheme
Target Group
Traders who are individuals, firms (Proprietorship/Partnership), companies, co-operative societies dealing in any lawful trading activity.
Business concerns/agencies providing services such as Xeroxing, dry cleaning, licenses to deal in petroleum products/LPG, auto service centers, etc.

2. Eligibility
 Traders having Registration/ License as applicable under local laws (i.e. Shops & Establishments Act)  as under from approved Authority:
(i) Sales Tax Registration/ VAT Registration
(ii) Drug License for Retail Trade of Drugs/Medicines ( where ever applicable)
(iii) Trade license for Ration & Civil supplies etc

The proponent is  engaged in the line of business for at least 1(one) complete financial year for which Income Tax Returns have been submitted along with Statement of Financial Result’s or Financials duly certified by a firm of Chartered Accountants acceptable to the sanctioning authority.  The unit should be a profit making one.
The sanctioning authority is required to be satisfied with the financials to ensure repayment for credit facilities up to Rs 2.00 Cr
Above Rs.2.00 Crores and up to Rs.5.00 Crores
      The financials (actual) of an existing unit should comply with benchmark ratios like, DER & TOL/TNW in line with lending policy of the bank
New units having reasonable projected sales/profitability will be considered depending on the merchandise under trade/ nature of service proposed, market potentiality, experience vis-à-vis financial capacity of the proponents etc.
The Overall Risk  Grading of the Entity should be between AB1 to AB4

3. Purpose
For Working Capital Requirements
For Term Loan
Acquiring/construction of premises, go-downs on ownership basis required for running the business.
b. For repair, furnishing, renovating existing business premises and/or purchase of furniture & fixtures.
c.   For purchase of new equipments, business tools, computers, UPS etc.
For Clean Term Loan (Term Loan where no tangible asset is created)
For payment of Security Deposits and/or long term revenue expenditure like, advertisement, cost of franchisee, licenses etc.


4. Nature Of Credit Facility
 Term Loan Finance:  Maximum period of 7 years (including moratorium).
Working Capital Finance:  will be repayable on demand.

5. Quantum of Loan
Working capital is linked to the needs of the borrowers assessed on the basis of the sales, the level of inventories and book-debts and the extent of finance already available from different sources i.e. capital, sundry creditors, loans and deposits of long term from family members/relatives.
The Term Loan assessment should be based on requirement of purchase of fixed assets. The quantum of Term Loan including Clean Term Loan should not exceed 50% of total loan requirement.
Sometimes, traders may not bring the entire capital as equity, part of it being brought in by way of loans, deposits etc from family members/friends & relatives. In these cases, such sources can be treated as quasi-equity provided such funds are free of interest.
However, interest bearing loans from friends/ relatives/directors/ partners may also be considered as quasi-equity only if the rate of interest on such loans is less than dividend payable in case of Companies or rate of interest charged by the Bank on the loan (least of the two). In any case such Unsecured Loans should be retained in the business throughout the period of Bank loan as also supported by undertakings from the promoters, friends and relatives to the effect that these funds will continue to remain in the business for treating as quasi equity

6. Methodology for Assessment of Term Loan/ Working Capital
For requirement up to Rs 2 Crore:
20% of the sales turn-over (estimated/projected for both existing as well as new units). However, rationality of projections should be ascertained considering past trend, future potential, market conditions etc.
For requirement of more than Rs.2.00 Crore and up to Rs.5.00 Crore: MPBF may be assessed as per 2nd Method of Lending on the basis of estimated/projected sales, level of inventories, book-debts and other current assets linked to the business required to be carried and the extent of finance already available from different sources i.e. capital, unsecured loans (treated as quasi-equity), sundry creditors and other current liabilities.

For Term Loan:
50% for acquiring/construction of premises, go-downs on ownership basis.
 50% may be sanctioned for other fixed assets relevant to the business.
In case of existing units, projected Debt Service Coverage Ratio (DSCR) is not necessary, but current (actual) level of profits should be adequate to meet the proposed repayment obligation (principal + interest).
In case of new units, DSCR should be examined as per Lending Policy of the Bank.
Letter of Credit/ Bank Guarantee up to 50% of working capital limit.
 Sales will be corroborated with appropriate proof on the basis of sales tax/ VAT return/ audited balance sheets & P&L A/c.
In case of new unit, reasonable projected sales and profitability should be considered depending on the merchandise under trade, market potentiality, experience vis-à-vis financial capacity of the borrower etc.

Clean Term Loan: 
Repayable in 3 years for providing security deposit and/ or long term revenue expenditures like advertisement, cost of franchisee, licenses etc. The loan amount in this case will be 75% of the security deposit required to be maintained /other long term revenue expenditures to be incurred as mentioned above.
It will be necessary to examine in detail, the projected cash flow statement for ascertaining repayment capacity within a maximum period of three years.
However, the facility sanctioned under Clean Term Loan should be fully (100%) secured by tangible collateral security in the form of NSC/ LIP (Surrender Value)/ Immovable property free from encumbrances.

7. Security
Primary:
Exclusive hypothecation charge on stocks, book debts & other current assets. Non-submission of stock-statement beyond 21 attracts @1% penal interest.
 Exclusive hypothecation charge on all fixed assets such as, equipments, business tools, computers, furniture & fixtures etc. of the unit. In case of loan sanctioned for acquiring/ construction of premises on ownership basis, the property should be mortgaged in favour of Bank as per Bank’s manual of mortgages.

Collateral:
For existing units: 75% of the total exposure.
 For New units: 100 % of the total exposure
 Clean Term Loan 
secured (100%) by tangible collateral security
 Term Loans (Other than Clean Term Loan) & Working Capital limits to borrowers under MSE category and eligible for CGTMSE Guarantee, collateral security and personal guarantee should not be insisted on.

Personal Guarantee: Obtain Guarantee of all partners in Partnership firms, promoter directors in Private Limited companies, at least one of the promoter directors having major financial stake in Public Limited companies.
Besides, in case of Proprietorship/ Partnership firm, obtain third party guarantee of a person with sufficient means & standing OR personal guarantee of the spouse(s); a personal guarantee of the spouse of the Managing Director may be obtained in case of Companies.

8. Standards for Margin
a) 25% on stocks
b) 30% on receivables up to 90 days only
c) 25% on term loan for equipments, tools, furniture & fixture etc
d) 50% on term loan sanctioned for acquiring/construction of premises, go-downs.
e) 25% on Clean Term Loan
f) 20% cash for Letter of Credit/ Bank Guarantee.
In case of commodities covered under Selective Credit Control, margin as stipulated by RBI to be maintained.

9. Tenure/ Repayment
Term Loan:
Maximum of 84 months (including moratorium)
Clean Term Loan:
 Maximum tenure of 3 years
At the time of disbursal 24 PDCs for the EMI are to be obtained.
 Working Capital:
The working capital limits shall be subject to review every year.

10. Risk Grading
As per Bank’s latest policy on Credit Risk Management

11. Pricing : (HO IC 13599 dtd 19.03.2015 )
Traders Classified  under Micro & Small Enterprises
For Traders not covered under Micro and Small Enterprise
Rating AB 1 to AB4 è BR+3.50

12. Discretionary Authority (HO IC 13339 dtd 30.09.2014).

12. Skill Loan Scheme.
(i)        Target Group
Any individual who has secured admission in a course run by Industrial Training Institutes (it is), Polytechnics or in a School recognized by Central or State Education Boards or in a College affiliated to recognized University, Training Partners affiliated to National Skill Development Corporation (NSDC) / Sector Skill Councils, State Skill Mission, State Skill Corporation, preferably leading to a Certificate / Diploma / Degree issued by such Organization as per National Skill Qualification Framework (NSQF) is eligible for loan under the Scheme.
·        The Government of India / State Governments may, from time to time, notify Institutes / Organizations for this purpose, which will be advised accordingly.
·        Minimum Qualification: As required by the enrolling Institutions / Organizations as per NSQF.
(ii)       Purpose
·        “Skill Loan Scheme” aims at providing a loan facility to individuals who intend to take up skill development courses as per the Skilling Loan Eligibility Criteria.
(iii)      Courses eligible
Courses run by above mentioned Training Institutes aligned to National Skill Qualification Framework (NSQF) shall be covered by the “Skill Loan Scheme”.
There is no minimum course duration.
(iv)      Expenses considered for loan
Fee payable to college/ school/ hostel and other related expenses.

(v)       Loan amount
Minimum quantum of finance is Rs. 5,000/- and maximum Rs.150, 000/-.
(vi)      Margin
10% of loan amount
(vii)    Rate of Interest*
BR+1.50%
1.00% interest concession, if interest is paid within the study & moratorium period
(viii)   Moratorium period
6 Months to 12 Months
(ix)      Security
The loan documents should be executed jointly by the student and the parent (s)/ guardian as joint-borrower.
No collateral security
(x)       Repayment
Loans up to Rs.50000/- -- up to 3 years
Loans above Rs.50000/- up to Rs.1.00 Lac -- up to 5 years
Loans above Rs.1.00 Lac -- up to 7 years
(xi)      Processing Fee
Nil




13.  HOUSING FINANCE SCHEME FOR FURNISHING, RENOVATION

AND / OR REPAIRING OF EXISTING / NEW FLATS / HOUSES


1
Purpose:
For furnishing and / or repairing of existing / new flats / houses.
2
Target Group
·         All the existing borrowers who have availed loan under Allahabad bank Housing Finance Scheme.
·         Persons owning flats/ houses free from all encumbrances having regular income to liquidate the loan amount.
·         The employees of Allahabad Bank may also avail Loan for existing/new houses / flats / under the scheme as per their eligibility / take Home Pay criteria norms laid down by the bank.
3
Eligibility:

·         Persons owning flats/ houses having regular income (IT assesse) sufficient enough to liquidate the loan along with interest within stipulated period.
·         The employees who have availed the housing loan from other organization may also avail of loan from the Bank under the scheme if they are having regular income sufficient to liquidate the loan along with interest within stipulated period and are able to comply with other stipulations of the scheme.
·         Total monthly deduction including installments of proposed loan should not exceed 60% of the monthly income.  
4
Rate of Interest:
   BR + 2.00 % p.a.w.m.r. 
5
Loan Amount:
·         Cost of furniture and fixture (against quotation / Performa invoice)
·         Cost of repair (For which purpose estimate from an architect / civil engineer / registered valuer shall be produced)
·         Maximum Rs. 5.00 lacs.
6
Margin:
25%  
7
Repayment Period:
 Max. Period of 10 years or attainment of 70 years of age whichever is less.
8
Moratorium Period
NIL (Repayment to start from the next month of disbursement).
9
Security:
Equitable / Supplemental mortgage of flat / house
10
Processing Fee:
0.61% of loan Minimum Rs.255  (Allahabad Bank Employees- NIL)
11
Discretionary Authority
Scale I –nil, Scale II onwards – Rs 5.00 Lacs
12
Relevant Circulars
IC NO 7283 / ADV/2002-03/12 dated 19.04.2002
  IC No. 10852/CPRMD/2009-10/19  dated  14.01.2010

14. AllBank New Saral Loan Scheme

1.
Target Group
Ø  Employees of those Organizations only whose salaries are being disbursed through our Bank Branches for at least past 6 months.
Ø   Minimum Gross Monthly Rs 20000/- and  be a permanent employee with a minimum 2 years’ service in the same Organization
Ø   The Organization must have  minimum 20 eligible employees
2.
Eligibility
Permanent employees  with a minimum 2 years’ service in the same
Organization / Institution with minimum gross monthly salary of Rs.20, 000/-.
3.
Age
Minimum  age 21 years and loan to  be repaid at least one year before his/her retirement from service
4.
Purpose
Ø  Loan may be utilized for the purpose of purchasing any consumer durable item / two wheeler, etc or any other tangible item(s) which can be validly hypothecated to the Bank and / or for meeting domestic, social, religious and other exigency expenses.
Ø  However, for meeting domestic, social, religious and other
          exigency expenses, utilization of loan should not exceed 50% of
          the loan amount.
5.
Quantum of Loan
·         24 months net salary or maximum Rs.7, 50,000/- whichever is less. Minimum loan amount should be Rs.50,000/-
·         Net take home salary after taking into account all deductions (existing and EMI of new loan) is not below 40% of the monthly gross salary

6.
Margin
·         10% (to be calculated on the basis of total Assets owned or to be purchased as shown in the Self-Declaration.

7.
Rate of Interest
·     BR + 4.00% p.a. with monthly rests.
·     0.50% rebate in interest rate is allowed if liquid collateral security (FDR / NSC / LIP / KVP) or Equitable Mortgage of Land / Building for the amount equal to the loan amount is offered.
8.
Repayment
Maximum 60 Equated Monthly Installments (EMI). The loan must be repaid 12 months before loanee’s retirement.
9.
Moratorium
One month
10.
Disbursement
Credit to applicant’s Saving Bank Account maintained with our branch/by pay order/Demand Draft, on the basis of Performa invoice of the supplier/self declaration by applicant
11.
Security

·     Hypothecation of articles being financed and /or other items of existing article owned by the proponent covering the full value of loan amount
·  Guarantee of spouse or parents in case of unmarried applicants
12.
Service Charges
Processing Fee - 1.22% of loan amount, minimum Rs.1223/-.
Prepayment Penalty - 2.00% of the Outstanding Balance only in case of takeover
13.
Others: 
·     Zonal Office officials should inspect the Branches on quarterly basis
14.
Discretionary Authority
   Scale
Aggregate per borrower authority
Scale – II
2.00 Lacs
Scale - III
3.00  Lacs
Scale – IV,V,VI
5.00 Lacs
ZLCC / FGMLCC
7.50 Lacs
ED /CMD / MCBOD
FP*
·         No authority is vested with the officers Scale –I for sanction of AllBank New Saral Loan Scheme.
·       As per the revised discretionary authority officers of Scale-II and above are authorized to sanction the Saral Loan. The RBB Manager of Scale-I will put up Saral Loan cases before the Branch Manager if he is Scale-II and above.
·       Proposal sent to Head Office may be considered by General Manager (Retail Credit) and above as per their respective authority.







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