A SUMMER PROJECT REPORT

11

A SUMMER PROJECT REPORT

ON Processing of Retail Loan Proposals at Retail Loan Factory of Bank of Baro a! A"#e a$a

by Hiral Panchal (4033)

K.S.School of Business Management u!arat "ni#ersity A report s%$#itte in partial f%lfill#ent of t"e re&%ire#ents of MBA Progra#

S%$#itte to Ban$ of Baro%a

Acknowledgement
The completion of any task depends upon the co-operation, coordination and consolidated efforts of several resources of knowledge, energy, and time and above all the proper guidance of the experienced bankers. Therefore I approached this matter of Acknowledgement through these lines trying my best to give full credit where it deserves.

I wish to express my gratitude to our institute, which has provided me the opportunity to fulfil the most cherished desire to reach my goal. I am thankful to all those who generously helped me to compile this project with their knowledge and expertise. irstly I owe a great debt to, !."."#$%%& % '("I)*"" +A)A,*+*)T for obliging the project, thus giving me chance to broaden my hori-on and providing me all necessary resources in college to assist me in the project. Also I owe a great debt to Mr.A.K.SHAH, #hief +anager of .& 'ank of 'aroda who has been nominated as mentor for my project and also thankful to all staffs of .& as well as $ead %ffice of 'ank of 'aroda for providing me the necessary guidelines regarding the project, for helping me to track the first hand information and supporting me in the carrying out the project successfully. As well as reposing a belief in me, this was essential for the completion of this project. I express my sincere thanks to Mr.PRIYA KUMAR, "enior +anager /$.+0 at .egional %ffice 'ank of 'aroda Ahmedabad for giving me the opportunity to choose this topic and the project. I also would like to thank Mr.ANJAY KUMAR +anager at .& Ahmedabad for the support and providing necessary guidance for completion of this project and allowing me the access to the necessary resources to gather primary information. I would also like to thank all the persons for their contribution for shaping up of this project, who helped me directly or indirectly in completing this project.

&.

Preface
The project is prepared during the vocational training under taken at .& on partial fulfillment of the course of 1master of business administration2 $ence, this report is designed with the objective to gain practical knowledge. According to old saying there is a huge difference between 1 To say and to do. To take theorical knowledge is important but it becomes more valuable when we apply it in the practice. "o, there is a huge difference between theory 3 practical. or filling this re4uirement training in the .& is very practical exposure for me. This training provides golden opportunity for all students, especially when the management does not have perfect knowledge 3 understanding of working in the organi-ation. $ence, this report is designed with the objective to gain practical knowledge.

Table of content

OBJE TI!E AN" S OPE O# THE PROJE T OBJE TI!E$

The main objective of the project is to know the different loan proposals at .& and how they are being processed. The main objectives of this project are as under 5 Identify the re4uested terms of loan, it include loan length, limit of the loan, interest rate, etc. To know the procedure of the loan from sales lead to the disbursement. To know what are the necessary documents for the loan.

Sco%e$
.etail segment is attracting attention to all banks, financial institution, foreign bank etc. now days there is a boom in retail banking sector. "o, there is a wide scope of retail segment. )ow days the population is increasing day by day. It causes to increases the number of housing loan. There is a golden opportunity for students in the abroad. The easy 3 open admission system is attracting many of the students of India. "o, the students who want to go there, they can avail the education loan for their bright future 3 study. 6ith the increasing of globali-ation 3technology, the living standard of people has also improved. "o, it will result to increase other loans like housing loan, car loan, traders7 loan, professional loan.

Ind&an 'an(&n) &nd*stry

,lance on Indian banking industry

Indian bank today is witnessing drastic change. The liberali-ation of financial sector 3 business sector reforms have exposed the Indian banks to a new economic environment that is characteri-ed by increased competition 3 new regulatory re4uirement. As a result there is a transformation in every sphere of activities of the banks in India. The last decade has seen many positive developments in the Indian banking sector. The 8olicy makers, which comprise the .eserve 'ank of India /.'I0, +inistry of inance and related government and financial sector regulatory entities, have made several notable efforts to improve regulation in the sector. The sector now compares favorably with banking sectors in the region on metrics like growth, profitability and non-performing assets /)8As0. A few banks have established an outstanding track record of innovation, growth and value creation. This is reflected in their market valuation. And 4uickly to build an enabling, rather than a limiting, banking sector in India. Indian banks have compared favorably on growth, asset 4uality and profitability with other regional banks over the last few years. The banking index has grown at a compounded annual rate of over 9: per cent since April ;<<: as compared to a ;= per cent growth in the market index for the same period. 8olicy makers have made some notable changes in policy and regulation to help strengthen the sector. These changes include strengthening prudential norms, enhancing the payments system and integrating regulations between commercial and co-operative banks.

%88%.T()ITI*" A)> #$A&&*),*" %. 8&A?*."

The bar for what it means to be a successful player in the sector has been raised. our challenges must be addressed before success can be achieved. #&rst, the market is seeing discontinuous growth driven by new products and services that include opportunities in credit cards, consumer finance and wealth management on the retail side, and in fee-based income and investment banking on the wholesale banking side. These re4uire new skills in sales 3 marketing, credit and operations. Second, banks will no longer enjoy windfall treasury gains that the decade-long secular decline in interest rates provided. This will expose the weaker banks. T+&rd, with increased interest in India, competition from foreign banks will only intensify. #o*rt+, given the demographic shifts resulting from changes in age profile and

household income, consumers will increasingly demand enhanced institutional capabilities and service levels from banks.

%)* % T$.** "#*)A.I%" 6I&& 8&A? %(T '? ;<:<

The interplay between policy and regulatory interventions and management strategies will determine the performance of Indian banking over the next few years. &egislative actions will shape the regulatory stance through six key elements5 industry structure and sector consolidation@ freedom to deploy capital@ regulatory coverage@ corporate governance@ labour reforms and human capital development@ and support for creating industry utilities And service bureaus.

T+ree scenar&os can 'e def&ned to c+aracter&,e t+ese o*tco-es$ A. H&)+ %erfor-ance scenar&o$
In this scenario, policymakers intervene only to the extent re4uired to ensure system stability and protection of consumer interests, leaving managements free to drive far-reaching changes. #hanges in regulations and bank capabilities reduce intermediation #osts leading to increased growth, innovation and productivity. 'anking becomes an even greater driver of ,>8 growth and employment and large sections of the population gain access to 4uality banking products.

'. E/o0*t&on5
8olicy makers adopt a pro-market stance but are cautious in liberali-ing the industry. As a result of this, some constraints still exist. 8rocesses to create highly efficient organi-ations have been initiated but most banks are still not best-in-class operators. Thus, while the sector emerges as an important driver of the economy and wealth in ;<:<, it has still not come of age in comparison to developed markets. "ignificant changes are still re4uired in policy and regulation and incapabilitybuilding measures, especially by public sector and old private sector banks. In this scenario, +3A activity is driven primarily by new private banks, which take over some old private banks and also merge among themselves. As a result, growth of these banks increases to A9 percent.

c. Sta)nat&on$
In this scenario, policy makers intervene to set restrictive conditions and management is unable to execute the changes needed to enhance returns to shareholders and provide 4uality products and services to customers. As a result, growth and productivity levels are low and the banking sector is unable to support a fast-growing economy. This scenario sees limited consolidation in the sector and most banks remain sub-scale. The extent to which Indian policy makers and bank managements develop and execute such clear and complementary agenda to tackle emerging discontinuities will lay the foundations for a high-performing sector in ;<:<.

H&story of Ban( of Baroda

A saga of 'ision an enterprise

It has been a long and eventful journey of almost a century across ;9 countries. "tarting in :B<C from a small building in 'aroda to its new hi-rise and hitech 'aroda #orporate #entre in +umbai is a saga of vision, enterprise, financial prudence and corporate governance. It is a story scripted in corporate wisdom and social pride. It is a story crafted in private capital, princely patronage and state ownership. It is a story of ordinary bankers and their extraordinary contribution in the ascent of 'ank of 'aroda to the formidable heights of corporate glory. It is a story that needs to be shared with all those millions of people - customers, stakeholders, employees 3 the public at large who in ample measure, have contributed to the making of an institution.

M&ss&on state-ent
1e/era)&n) tec+no0o)y for a*)-ent&n) '*s&ness )ro2t+ and %rof&ta'&0&ty.

1O3O
'ank7s new logo is a uni4ue representation of a universal symbol. It comprises dual DB4 letterforms that hold the rays of the rising sun .'ank call this the 'aroda "un. The sun is an excellent representation of what bank stands for. It is the single most powerful source of light and energy E its far reaching rays dispel darkness to illuminate everything they touch. At 'ank of 'aroda, bank seeks to be the source that will help all our stakeholders realise their goals. To our customers, we seek to be a one-stop, reliable partner who will help them address different financial needs. To our employees, bank offer rewarding careers and to our investors and business partners, maximum return on their investment on the single-colour, compelling vermillion palette has been carefully chosen, for its distinctiveness as it stands for hope and energy 'ank also recogni-es that our bank is characteri-ed by diversity. The network of branches spans geographical and cultural boundaries and rural-urban divides. #ustomers come from a wide spectrum of industries and backgrounds. The 'aroda "un is a fitting face for brand because it is a universal symbol of dynamism and optimism E it is meaningful for many audiences and easily decoded by all. 'ank7s new corporate brand identity is much more than a cosmetic change. It is a signal that we recogni-e and are prepared for new business paradigms in a globalised world. At the same time, bank will always stay in touch with its heritage and enduring relationships on which bank is founded. 'y adopting a symbol as simple and powerful as the 'aroda "un, bank hope to communicate both.

HERITA3E
It all started with a visionary +aharajaFs uncanny foresight into the future of trade and enterprising in his country. %n ;<th Guly :B<C, under the #ompanies Act of :CB=, and with a paid up capital of .s :< &acs started the legend that has now translated into a strong, trustworthy financial body, THE BANK O# BARO"A. It has been a wisely orchestrated growth, involving corporate wisdom, social pride and the vision of helping others grow, and growing itself in turn. The founder, Ma+ara5a Saya5&rao 3ae(2ad, with his insight into the future, saw Ha bank of this nature will prove a beneficial agency for lending, transmission, and deposit of money and will be a powerful factor in the development of art, industries and commerce of the "tate and adjoining territories.H

Jo*rney fro- 6789 to :887$

()*+,()-+

:B<C5 +aharaja "ayajirao ,aekwad III set up 'ank of 'aroda /'%'0. :B:<5 '%' established its first branch in Ahmadabad. :B9A5 '%' established a branch in +ombasa and another in !ampala. :B9I5 '%' opened a branch in )airobi. :B9J5 '%' opened a branch in >ar-es-"alaam. :B9=5 '%' established a branch in &ondon. :B9B5 '%' ac4uired H&nd Ban(.

().*s,()/*

:BJ:5 '%' merged in Ne2 &t&,en Ban( of Ind&a. This merger helped it increase its branch network in +aharashtra. '%' also opened a branch in iji :BJ;5 '%' opened a branch in +auritius. :BJA5 '%' ac4uired S*rat Ban(&n) or%orat&on in "urat, ,ujarat. :BJI5 '%' ac4uired two banks, U-'er)aon Peo%0e4s Ban( in southern ,ujarat and Ta-&0 Nad* entra0 Ban( in Tamil )adu state. :BJI5 '%' lost its branch in )arayanjanj /*ast 8akistan0 due to the Indo8akistan war. It is unclear when '%' had opened the branch. :BJ95 '%' opened a branch in ,uyana. :BJ=5 The Tan-anian government nationali-ed '%'7s three branches there and transferred their operations to the Tan-anian government-owned )ational 'anking #orporation. :BJB5 The ,overnment of India nationali-ed :I top banks, including '%'. '%' incorporated its operations in (ganda as a 9:K subsidiary, with the government owning the rest.

:888s

;<<<5 '%' established Ban( of Baroda ;Bots2ana.. ;<<;5 '%' ac4uired Benares State Ban( in 'enares at the .eserve 'ank of India7s re4uest. ;<<;5 'ank of 'aroda /(ganda0 was listed on the (ganda "ecurities *xchange /("*0. ;<<A5 '%' opened an %'( in +umbai.

;<<I5 '%' ac4uired the failed ,ujarat &ocal Area 'ank, and returned to Tan-ania by establishing a subsidiary in >ar-es-"alaam. '%' also opened a representative office each in !uala &umpur, +alaysia, and ,uangdong, 8.#. ;<<95 The .eserve 'ank of India /.'I0, has approved a joint venture between '%', 'ank of +aharashtra /'%+0, and %riental 'ank of #ommerce /%'#0 to set up a bank in +alaysia. The new bank will reside in !uala &umpur, which has a large population of Indians. The initial capital re4uired will be ("L=C million@ '%' will invest I<K, and the other two banks will invest A<K each. The GM is awaiting approval from the +alaysian #entral 'ank. 'ank has built and commissioned its own "tate-of-the-Art ,lobal >ata #entre />#0 in +umbai for running its centrali-ed banking solution/#'"0 and other applications in :B<<N branches across India and ;< other counties where the 'ank is operating. '%' also opened a representative office in Thailand. ;<<J5 '%' established an %ffshore 'anking (nit /%'(0 in "ingapore. ;<<=5 In its centenary year, '%'Fs total business crossed ;.<B lakh crores, its branches crossed :<<<, and its global customer base ;B million people. ;<<C5 '%' opened a branch in ,uang-hou, #hina /<;O<CO;<<C0. ;<<B5 'ank of 'aroda registered with the .eserve 'ank of )ew Pealand, enabling it to trade as a bank in )ew Pealand /;<<BO<BO<:0

Introd*ct&on of Reta&0 1oan #actory

T"e Bank of Baro a

has launched its new retail loan delivery model called the 1urban retail loan factory2

The model has been designed under 'ank7s project parivartan, which aims to reposition the bank as a sales 3 service organi-ation offering a complete range of life cycle 3 need of each segment of customers, according to a press release. The idea behind the model was to speedup the processing of retail loans in present competition environment. .& is having twin outfits comprising a sales team 3 a centrali-ed processing cell /#8#0 manned by the bank employees. $ere, the sales executive will visit potential clients, and helps the clients to fill up the loan application form, if the file is viable 3 submit the file to .& for further procedure while other functionaries work to sanction the loan. The central processing cell shall have simple processes powered by the use of technology to ensure sanction of loan within the set timelines. The retail loan delivery outlet would offer loans within six working days. H6e believe in providing credit fast and without hassles,H said A! !handelwal, the then #hairman and +anaging >irector.

HIn this innovative retail loan delivery model, the potential clients are reached by
sales executives. 6hile a team of dedicated employees works to sanction the loanH.

SME SE TOR$

'ob has rolled out small 3 medium enterprise loan factory across three locations in +umbai. The bank7s "+* segment has been growing at the rate of ;9K this year. #urrently bank has about :9 "+* loan factories.

Or)an&,at&on str*ct*re of Reta&0 0oan factory

%rgani-ation profile5
Na-e
1ocat&on

$
$

Ur'an reta&0 0oan factory

:st floor, Above '%' Ambawadi branch 8anchwati marg,Ahmedabad-AC<<<J ;9 9B B:-<=B-;JI;:J;A B:-<=B-;JI;:=J: rlf.ahmedabadQbankofbaroda.co.in ;<<J +onday to riday :<5<< to 95<< p.m "aturday$ :<5<< to ;5<< p.m

No of e-%0oyees$ No of 'ranc+es $ ontact no #a< no E=-a&0 &d Esta'0&s+ed Off&ce t&-e $ $ $ $ $

Awareness of .& 'ranches

.etail lending products

'ank offers several retail lending products to its customers. $owever, .& processes only these products which are secured by mortgage of property. :0 +ortgage loan ;0 %ther loan +ortgage loan include the security by the means of immovable property and include here that is .& 6hile other loan includes the security by the means of movable property onlyR

+ortgage loan5
:0 'aroda housing loan 'aroda home loan/resident Indian0 'aroda home loan to ).IsO8I%s 'aroda home improvement loan 'aroda advance against property 'aroda advance against property to ).I

;0'aroda education loan 'aroda gyan 'aroda vidhya 'aroda scholar ;0 'aroda Traders loan /&oanOoverdraftOfresh sanctionO.enewal0 A0 'aroda loan to doctors / resh sanctionO.enewal0 I0 'aroda loan to professionals / resh sanctionO.enewal0 90 'aroda advance against property

$owever, .& is empowered to process any type of retail loan. &ike

%ther loan5
'aroda personal loan 'aroda car loan 'aroda two-wheeler loan 'aroda loan to defiance pensioners 'aroda loan to pensioners 'aroda consumer durables 'aroda loan for laptops 3 personal computer 'aroda vaibhav lakshmi

8rocedure
"teps to be followed for processing loan
&ead generationOinward of file ollow up by sales executive #ollect the details 3 re4uired papers It include, Type of product .e4uirement amount 8apers 8reparation of calculation sheet by sales executive "ubmission of file to processing department with all formalities orwarding memo #alculation sheet !?# norms /!now your customers0 #I'I& /#%)"(+*. I) %.+ATI%) '(*A.( I)>IA &I+IT*>0 #hecking of #I'I& "crutiny of file Allotment of report which include, TO# report /title clearance report0 MOr report /valuation report0 8re inspection by bank officers eed the file in the &A8" /lending automation processing system0 #ollectO follow up of tOc report, vOr report ile ready for the sanction >ocumentation "eparation of papers for record >ispatch to concern branch

After that the next procedure is to be continued by branch. At branch level steps are done vi-. ollow the appraisal cum sanction memo #ontact to the borrower for execution of and completion of other formalities.

 *xecution of documents / ranking, sign documents of applicant7s, guarantor, and co-applicant0 To issue original pay order To give nomination letter #reation of mortgage as per title report To register the mortgage deed as per state ,ovt notification.

6.1ead )enerat&on>&n2ard of f&0e

T+e 0ead &s to 'e )enerated 'y t+ese 2ays.
I. The lead is to be generated by different branch@ means if the in4uiry of loan is related to immovable mortgage then branch contact to .& is called generate lead. >irectly party can contact to .& . 8arty directly can fill online application through "+", web site, e-mail. &ead is also generated through references like old customers, relatives of staff, bank employees etc.

II. III. IM.

:. #o00o2 *% 'y sa0es e<ec*t&/e$

After lead generation the next step, sales executive follow up The lead if lead converts to prospective business, then sales executive helps the customer to complete the formalities of pre approved of loan. The help may include,
It include the re4uirement of loan amount 'rief history of loan product Then sales executive prepare or fixed hisOher eligibility 8repare a file including with personal papers, business papers and property papers Application form #alculation sheet orm no-:A9 orm no-:J !?# verification #ollecting all the relevant proposed documents Telling the party about the 4uantum of loan amount

Pre'aration of calculation sheet (or HS )*+),+" -*./

0ncome (irst year Secon% year 3hir% year a''licant co1a'' co1a'' 22222222222222222 22222222222222222 22222222222222222 22222222222222222 22222222222222222 22222222222222222

.#erage annual income (for business 'erson) ross monthly income (for salarie% 'ersons) .. Ma4imum eligibility as 'er income 5s

a) "' to 5S &00006 37 times of monthly income b) More than 5S &00008 u' to 9000006 4: times of monthly income. c) More than 5S.9lac6 ;4 times of monthly income -ess 40<6 ;0<6 70< of monthly income ("' to 5S.&0000 More than 5S.&0000 8 u' to5S.;0000 .bo#e 5S.;0000 8u' to 5S.9 lac .bo#e 5S.9 lac +e%uction salary %e% 0nsu.'rem -oans ,M0 .#ailable for ,M0 5s. 22222222222222222 40< ;0< 70< 70<) 22222222222222222 22222222222222222 22222222222222222 22222222222222222

5e'ayment 'erio% 22222222222222222 M*/3H 22222222222222222 B. ,ligibility as 'er re'aying ca'acity 5s Stam' %uty 8 registration charges =ost of 'ro'ose% 'ro'erty 5s *ther charges1."+. etc 5s >ear of com'letion =onstruction ?ill be com'lete% on 22222222222222222 22222222222222222 22222222222222222 22222222222222222 22222222222222222 22222222222222222

Less,#argins Monthly income "' to 5S.&0000 Pur'ose Purchase of 'lot House)flat alrea%y constructe% from o?n sources .ll other cases .bo#e 5S.&0000 Purchase of lot House)flat alrea%y constructe% from o?n sources .ll other cases Ban$ loan 5s. =. ,ligibility as 'er cost of 'ro'erty 5s +. ,ligibility for loan amount (.)B)=) ?hiche#er is less) 5s. Margin &0< &;< &0< &0< &0< 9;<

22222222222222222 22222222222222222 22222222222222222

?.

IBI1 $ @

red&t Infor-at&on B*rea* ;IN"IA. 1&-&tedA

The establishment of #I'I& is an effort made by the ,overnment of India and the .eserve 'ank of India to improve the functionality and stability of the Indian financial system by containing )8As while improving credit grantors7 portfolio 4uality.

#I'I& provides a vital service, which allows its +embers to make informed, objective and faster credit decisions, with greater efficiency and grow business profitability.

.apid industriali-ation. An expanding economy. ,rowing aspirations. Increased incomes. Improved lifestyles. Availability of high 4uality products and services.

An expanding market these factors have created an atmosphere conducive to rapid credit off take. 6hile the demand for credit has risen exponentially, there has been a parallel increase in competition.

'y the use of #I'I&, which provides details pertaining to credit facilities already availed of by a borrower as well as his payment track record, has become the need of the hour.

#I'I&7s aim is to fulfill the need of credit granting

Institutions for

comprehensive credit information by collecting, collating and disseminating credit information pertaining to both commercial and consumer borrowers, to a closed user group of +embers.

'anks,

inancial Institutions, )on 'anking

inancial #ompanies, $ousing

inance #ompanies and #redit #ard #ompanies use #I'I&7s services. >ata sharing is based on the 8rinciple of .eciprocity, which means that only +embers who have submitted all their credit data, may access #redit Information .eports from #I'I&. The relationship between #I'I& and its +embers is that of close interdependence.

or accessing #I'Il data bank has to enter one of these documents number, which is uni4ue itself vi-.

PAN card n*-'er !oters &d n*-'er Pass%ort n*-'er "r&/&n) 0&cense
In add&t&on to a'o/e, t+e na-e of %arty, date of '&rt+, address 2&t+ %&n code, a-t B%*r%ose of 0oan are a0so -*st.
6e can get the all the credit information of the customer whether the customer have availed the loan, whether they have in4uired for any loan. "o this facility is very useful for the bank to know the credit status of borrower or to help in the decision whether heOshe is suitable for the loan or not. If there is an overdue in the #I'I& report which appears to be genuine then bank may take that report positive and may sanctioned the loan. 'ut chronic defaulters are not entertains all. After filling all information, a report with control number of B digit gets generated which entails all the credit facilities enjoyed by party or any en4uiry made therefore. 'ut bank7s name or financial institution name do not appear in then. If the report is satisfactory, then loan application is entertained. If there is any write offOdefaultersOoverdue or any information concealed by party then bank may ask for details thereof. If the submitted information is satisfactory then loan may be sanctioned otherwise bank is at discretion not to consider credit facilities.

C. S RUTINY O# THE #I1E$

After the checking of #I'I& the next step is to be scrutiny of file. $ere carefully all the informationOdocuments are checked by officer. They mainly check these documents, &oan application is duly completed /only for applicant0 8roof of identification5 id cardOpassportOdriving licenseO8A) card 8roof of residence5 id cardOpassportOelectricity billOtelephone bill 8roof of business address, in case of non salaried borrowers "tatement of bank account for last six months /personal0 Investment proofs e.g. copies of )"#, !M8 bonds, &I#, .# book, demat aOc, property tax bill &oan account statement

D. A00ot-ent of t+e re%ort$

6. T&t0e c0earance re%ort$

Title clearance report is must checked by bank7s empanelled advocates. $ere advocate verifying the title clearance 3 searching for last A< years in the respective courts regard. $owever if government authority allocates the property then search will be done only for remaining period of A< year.

If the property is allocated by govt authority then search is done only after the allotment. 'ank has designed specific format for obtaining legal opinion from bank7s empanelled advocates. This format describes Ocovers all the points like,

)ame of account 3 facility >escription 3 area of property )ame of the mortgagor 3his status in the account 6hether the mortgagor has sufficient title 3 capacity to contract for creation of mortgage. )ature of mortgagor7s right or title in the property. 6hether mortgagor is in exclusive possession of property proposed to be mortgaged >ocuments studied #hain of title 6hether the title is clear 3 property is free from any encumbrance Title to property is clear, unambiguous, marketable 3 property is saleable 6hether there is any restriction for creation of e4uitable mortgage. )o objection is re4uired &ist of the title deeds to be deposited to create mortgage by deposit of title deeds in favour of bank by mortgagor. At the same time court fee receipt is must

#harge5 minimum :9<< 3 for outstation search 9<< extra +aximum ;9<< :. !a0*at&on re%ort$

Maluation report to be obtained from approved valuer of the bank. Maluation report involves the current price of proposed property. It include current market price of property. #harge$ :<< for :lac +ax-;9<<

?. Ot+er c+ar)e5
It includes processing charges &oan up to .".;<O-lacs5<.A9KNservice tax &oan above .".;<O-lac5<.I<KNservice tax +aximum .".:9<<<O&oan above .".A< lacs-<.=9K additional interest 'ut if the borrower is government employee or in preferred list of bank, then <.;9K discount is allowed in rate of interest in the applicable rate of interest.

D. Ins%ect&on 'y off&cer$

There are two types of inspection carried out in all types of loans. :0 8re sanction inspection ;0 8ost sanction inspection 8re sanction inspection is considered a part of processing. )o charge is to be levied therefore

P*r%ose of %resanct&on &ns%ect&on$

+ost importally, it is treated as vital part of processing. To ensure that information provided by the applicant is correct 3satisfactory It includes inspection of residence area, place of employment, place of proposed property It is treated as the basis for construction of any loan ,enerally some officers are designated for carry out this task %n the basis of satisfactory report there from loans are being considered This pre sanction inspection is carried out on expectedly. /without giving information to borrower0 8ost inspection is done through branch. The purpose behind post inspection is to ensure that the proposed property is owned by party or not.

E. #&0e feed&n)$

$ere, files are sent for entry of information into &A8" /& end&n)

a*to-at&on %rocess&n) syste-.. This software is a boon for 'ank for retail
loan products and this is internet-based software, maintained at +umbai. If there is any change of any type happens, this may be automatically affected in all files.

The benefit of the software is that it covers all the information relating to applicant, co-applicant 3 guarantor. #ustomer profile5 it include demographic, income expenses 3employments details 6hether they have &I# policy then the information of that, financial information of the customer, their liabilities 3 assets. There are many advantages of &A8" like5 *asy accessible /anywhere, anytime0 &ess time consuming >ata storage facility permanently Automatically adjust the interest, amount 3 also eligible amount after entering of all the regarding data which helps the user to ensure that sanction able loan amount is in line with 'ank7s guidelines.

F. Ne<t Ste%@
After the file feeding the next step is to send the file in the processing department where all the information are again checked in &A8" and it is ensured that necessary papers are attached in the file. $ere files are being processedOsanctioned keeping in mind the 'ank7s guidelines and sent to dispatch department where necessary papers are xeroxed to keep in record and loan documents are taken print out. 3enera00y, a%%ra&sa0 note is made on checking on the following points, 'ackground of the applicant .e4uest of loan amount

 #ost of property ,uarantor information #I'I& >ATA >escription of the property .ecommended by sales executive )et worth 3 risk rating Title clearance report Maluation report ield Inspection .eport

It is worth mentioning that cred&t rat&n) is strictly checked to ensure that 4uality of loan file and if the credit rating is within 'ank7s permissible norms, then loan amount will be sanctioned otherwise on the basis of poor crediting rating loan file may be rejected or returned. #redit rating is done on the #.I"I& model. $ere in 'anking, the credit rating is done for all types of loan but not below the loan amount of .s ;.<< lac. 'asically, crediting rating is decided on the following points5 'orrower Age *ducational 4ualification +arital "tatus +obility of individual-location )umber of depends )umber of joint applicants .elationship with bank *mployer Type >esignation "tability of income

8roof of income of borrower $ousing loan purpose category &oan to value ratio )et worth to loan ratio )et annual income of the borrower ixed obligations to income .atio ,uarantor7s )et worth to loan .atio

Baroda Housing Loan

7

Reta&0 1end&n) Prod*cts of R1#

BARO"A HOUSIN3 1OAN$

.etail continues to be the thrust area for credit growth in banking sector and out of that home loan plays a vital role in retail credit growth. 'aroda home loan is a major product under .etail &oan actory.

It contributes more than I9K of the total retail loans.

6. P*r%ose$

:.

#onstruction of new dwelling unit and purchasing of new residential houseOflat. %ld dwelling unit /not more than ;9 years old0 8urchase of plot of land, subject to the condition that a house will be constructed thereon within A years or up to the period allowed by development authority. .epayment of loan already availed from any other bankO$ # /housing financial corporation0, provided documentary evidences are produced or housesOflats constructedOpurchased /not prior to ;I months0 from own sources. &oan for purchaseOconstruction of second house can be considered. E0&)&'&0&ty$

?.

All individuals singly or jointly 8rincipal applicant must be employed minimum for A years M&n&-*- a)e=%r&nc&%0e 'orro2er=:6 yrs and co='orro2er=69 yrs ; salaried person-repayment period shouldn7t be beyond retirement age and for othersJ9 years Ho*s&n) 0oan to HU# of 'e cons&dered. 1&-&t$

The maximum limit is .s.:<< lacs /branches have to seek approval from authority, if loan exceeds .s. 9< &acs0. $owever, the actual 4uantum of loan should arrive at after considering the income criteria 3 repaying capacity.

C.

Inco-e cr&ter&a$ So*rce Inco-e (p to .s.;<<<< "alaried +ore than .s.;<<<< 3 up to .".: &acs +ore than .s.: &acs r&ter&a AJ times of monthly income IC times of monthly income 9I times of monthly income 9 times of net average /last A years0 annual income excluding depreciation

%ther than salaried persons

G+ene/er &nco-e of t+e fa-&0y -e-'ers &s c0*''ed, t+ey s+o*0d 'e -ade co='orro2ers. Inco-e of t+e a)r&c*0t*r&sts 2+o are not reH*&red to t+e f&0e t+e &nco-e ta< are a0so cons&dered &f t+e &nco-e &s s*%%orted 2&t+ re0e/ant %a%ers>doc*-ents. D. Mar)&n$ Mont+0y &nco-e P*r%ose 8urchase of plot /incl.registration charges 3 cost of stamps0 $ouseOflat already constructed from own resources. All other cases 8urchase of plot /incl.registration charges 3 cost of stamps0 $ouseOflat already constructed from own resources. All other cases Mar)&n ;<K ;9K ;<K ;<K ;<K :9K

(p to .s.;<<<<

Above .s.;<<<<

E.

Re%ay-ent$

+aximum ;9 years /including moratorium period0 Morator&*- %er&od$ 8eriod in which the applicant is not re4uired to pay principal. $owever, he may or may not pay interest during this period. Ma<&-*- -orator&*- %er&od &s 69 -ont+s. After t+at %er&od, %arty +as to 'e start %ay EMI e/en &f t+e constr*ct&on &s not co-%0eted. Age of the borrower plus repayment period should not exceed5 .etirement age in case of salaried J9 years in case of others Ins*rance$

F.

The insurance of the house mortgaged to the bank is to be done at the bank7s cost under Baroda 0oan s*ra(s+a '&-a %o0&cy 2&t+ national insurance company ltd. 'ob has tide up with Kota( Ma+&ndra to provide personal death insurance which is optional ree accidental insurance of the borrower at the bank7s cost / &ns*rance co/er s+a00 'e a/a&0a'0e. 'orrower can join Baroda 5ee/an )r&+a s*ra(s+a scheme to cover the out standing loan amount with accrued interest against the risk of normal death after paying nominal insurance premium once.

9. Process&n) c+ar)es$

or loan up to .s.;< lacs-<.A9K on loan amount service tax. or loan above .s.;< lacs-<.I<K on loan amount /max .s.:9<<<Nservice tax0

7. Ot+er feat*res$

ree credit cards )o card-up to .s.; &acs 8aras-loan limit of .s.; &acs to 9 &acs *xclusive-above .s.9 &acs 3 up to .s.:< &acs ,old-above .s. If t+e 0oan a-o*nt &s a'o/e D8 1acs t+en &nterest &s to 'e added 8.FDI &n t+e nor-a0 &nterest.

Home Loan to NRIs

7

 BARO"A HOME 1OAN TO NRIs>PIOs$

6. P*r%ose$ a. 8urchase of new residential houseOflat. b. #onstruction of new dwelling unit. c. 8urchase of old dwelling unit /not more than :9 years old0. d. or repairOrenovationOextension of existing house. e. 8urchase of plot of land, subject to the condition that a house will be constructed thereon within-; years from the date of purchase of plot. f. .epayment of the loan already availed from any other bankOhousing finance company under their scheme to finance ).IsO8I%s for housing. T+e 0oan s+a00 'e cons&dered for res&dent&a0 %ro%ert&es s&t*ated &n Ind&a :. Area of o%erat&on$ The branches may consider housing loan proposals provided it is in the cityOtown of5

&ocation of new flatOhouse to be purchased Oconstructed or 8lace of residence of the applicant in India

?. E0&)&'&0&ty$ )on-resident Indians /).Is0 holding Indian passport or persons of Indian origin /8I%s0 holding foreign passport, singly or jointly.

or this purpose person of Indian origin means a citi-en of any country other than 'angladeshOsri lanka OAfganistanOchinaOiranOnepal 3'hutan ifI. $e at any time held Indian passport or II. $e or either of his parents was a citi-en of India by virtue of the constitution of India of the citi-enship Act :B99,or III. The person is a spouse of an Indian citi-en or a person referred to in sub clause /a0 or /b0 above. :. 8rincipal applicant should having a regular job abroad in a reputed IndianOforeign company, organi-ation or government department holding a valid job contractOwork permit for minimum past ; years. %r ;. +ust be employedOself-employed or having a business unit and staying abroad at least for ; years M*st +a/e -&n&-*- )ross ann*a0 &nco-e eH*&/a0ent to Rs.D 1acs %er ann*-.

C. A)e$

+inimum age must be ;: years@ minimum age of co- borrower can be :C years. Age of the borrower plus repayment period should not be beyond retirement age or J9 years whichever is earlier.

D. Sec*r&ty$

*4uitableOlegal mortgage of property constructedOpurchased or property to be .enovated Orepaired. 8ersonnel guarantee of spouseOfamily member residing in India shall be obtained. If s%o*se &s a0so res&d&n) a'road %ersona0 )*arantee of one>t2o %ersons res&dent &n Ind&a +a/&n) adeH*ate 2ort+.

E. M&n&-*- a-o*nt$

or purchase of newOold houseOflat or construction of houseOflat5 .s.9O-lacs or repairsOrenovationsOextensions5 .s.:O-lac.

F. Ma<&-*- a-o*nt$ or purchase of newOold houseOflat or construction of houseOflat5 .s.:<<O-lacs or repairsOrenovationOextensions5 .s.;9O-lac or purchase of plot of land5 .s.9<O-lacs

9. Re%ay-ent %er&od$ +aximum :9 years including moratorium Pay-ent s+o*0d 'e re-&tted fro- a'road t+ro*)+ nor-a0 'an(&n) c+anne0s or o*t of NRE>NRO ;non res&dence e<terna0 acco*nt. acco*nt of t+e 'orro2er are to 'e o'ta&ned. #lose relatives of the borrower in India may also repay the installments of such loans, interest and other charges, if any, through their bank account directly to the borrower7s loan account.

7. Ot+er %o&nts$

This loan is decided on the papers like employment contract, copy of visa, passport 3 similar credit in salary account. If the applicant is residing outside India 3 there is no possibility of coming in India in near future then heOshe can avail the housing loan through power of attorney executed in favor of local resident at India.

 BARO"A AAA;A""ITIONA1 ASSURE" A"!AN

6. P*r%ose$ Any purpose excluding speculative or illegal purpose. :. E0&)&'&0&ty$

E.$

All existing housing loan customers, whose conduct of account is good and is classified as standard. There is no adverse featuresOauditorsOinspecting officer7s remarks in exiting housing loan AO#s. Age of borrower Ntenure of AAA loan should not exceed J9 years. &oan can be availed maximum 9 times during the tenure of housing loan provided previous AAA is settled at least one month before. ?. 1&-&t B -ar)&n$ minimum-.s.;9<<< maximum-amount e4ual to B<K of principal amount repaid +argin-:<K of the principal amount repaid. C. Re%ay-ent$ 'y e4uated monthly installments /*+I0.first installment to fall due one month after first disbursement. .epayment period as per borrower capacity to repay however in any case not to exceed remaining period of housing loan. D. Sec*r&ty$ *xtension of e4uitable mortgage of the housing loan. 8ersonal guarantee of third party if the same is mentioned in housing loan.

 BARO"A HOME IMPRO!EMENT 1OAN$

6. P*r%ose$ or repairOrenovationOimprovementOextension of existing house. 8urchase of furnitureOfixtureOfurnishingOother gadgets. / On0y to t+ose 'orro2ers 2+o o'ta&ns 0oans for re%a&rs>reno/at&on *nder t+e sc+e-es.. :. E0&)&'&0&ty5 +inimum age-;: years. +aximum age of the borrower Nrepayment period should not be beyond retirement for salaried person and J9 years in case of others. HU# Bstaff -e-'ers are not e0&)&'0e. ?. 1&-&t5 (pper ceiling limit .s.:<.<< lacs with the provision that loan component for furnitureOfixtureOfittingOother gadgets should not exceed .s.9.<< lacs, (nder this product for salaried ;I times of gross monthly income 3 for businessman ; S of gross monthly income. C. Mar)&n$ ;9K of the project cost D. Re%ay-ent5 +aximum :< years/including moratorium period0 +oratorium period maximum J months. E. Interest$ :<.9<K

F. "oc*-entat&on c+ar)es5 1oan a-o*nt (p to .s.;9<<<OAbove .s.;9<<<O- 3 up to .s.; lacs Above .s.; lacs 3 up to .s.9 lacs Above .s.9 lacs 3up to .s.:< lacs +ar)es;s.t.to.'e &nc0*ded. )il .s.;<< .s.9<< .s.:<<<

Pro%erty s+o*0d 'e &n t+e na-e of a%%0&cant B&n t+e %ossess&on of a%%0&cant.

EDUCATION
7

 BARO"A E"U

ATION 1OAN$

'ank of 'aroda has three types of education loan. a. Baroda /&d+ya '. Baroda )yan c. Baroda sc+o0ar

A. Baroda /&d+ya$
:. Tar)et )ro*%$ parents of students perusing school education nursery to standard TII :. E0&)&'&0&ty$ from

"hould be an Indian national residing in India. "tudent should have secured admission to a recogni-ed
schoolOhigh schoolOjr.college for any of the following courses5 "tage :5 nursery to M th std. "tage ;5MI th to MIII th std "tage A5 IT th to TII std )o minimum 4ualifying marks 1oan to 'e )ranted &n t+e na-e of fat+er>-ot+er of t+e st*dent ?. o/era)e of e<%enses for5 ee payable to collegeOschool *xaminationOlibraryOlaboratory fee ee and other charges payable to hostel 8urchase of booksOe4uipmentsOinstrumentsOuniforms 8ersonal computersOlaptops wherever re4uired #aution depositObuilding fundOrefundable deposit supported by institution billsOreceipts ost of e<terna0 coac+&n)>t*&t&on &s not 'e

cons&dered
C. J*ant*- of f&nance$ maximum .s.I lac D. Mar)&n5 nil E. Re%ay-ent %er&od$ ?early sub limit repayable in :; e4ual installments .epayments to start :; months after first disbursement of each year7s loan amount

F. Rate of &nterest5 :.;9K below '8&. 6I concess&on &n t+e rate of &nterest to 0oans sanct&oned for t+e 'enef&t of )&r0 st*dents.

B. Baroda )yan$
(0 Target gro%p1 :. Mar)&n$ (p to .s.I lacs 5)I& Above .s.I lacs5 9K "tudents pursuing graduation, post graduation, professional 3 other courses in India. ?. o*rses e0&)&'0e$ ,raduationOpost graduationOprofessional 3 other courses like I#6A,#A,# A etc. as well as courses conducted by II+,IIT,II"#,T&.I,)I T etc. *vening courses of approved institutes. %ther courses leading to diplomaOdegree etc.conducted by collegesOuniversities approved by (,#O,%MT etc. C. St*dent e0&)&'&0&ty$ "hould be resident Indian. "ecured admission to professionalOtechnical courses in India t+ro*)+ entrance test>-er&t 'ased se0ect&on %rocess. D. J*ant*- of f&nance$ +aximum .s.:< lacs "cholarshipOassistant ship if any received to be included in the margin student pursuing graduation, post graduation, professional 3 other #ourses in India

E. Re%ay-ent B -orator&*- %er&od$

#ourse periodN: year or J months after getting job, whichever is earlier. The loan is repayable in 9-= years after the above period.

Baroda scholar
7

. Baroda sc+o0ar$
6. P*r%ose$ 'ank of 'aroda presents financial assistance to students going abroad for ,raduationOpost graduationOprofessionalOtechnical courses offered by reputed universities abroad. :. 1oan a-o*nt$

+aximum5 .s.;< lacs +inimum5 .s.=.9< lacs /mortgage base0

?. Mar)&n a-o*nt$ 6DI C. Sec*r&ty5 mortgage of property up to loan amount D. St*dent e0&)&'&0&ty$

"hould be an Indian national "ecured admission to professionalOtechnical courses abroad through entrance testO+erit based selection process.

E. o/era)e of e<%enses$

AdmissionOtuition fees to collegeOuniversity 3hotelOmess charges. *xaminationOlibraryOlaboratory feeOpurchase of booksOe4uipmentsOuniform etc. 8urchase of computers if essential for completion of the course. Any other expense re4uired to complete the course e.g. study tour, project work, thesis etc.

F. Re%ay-ent B -orator&*- %er&od$

#ourse periodN: year or J months after getting job, whichever is earlier.

9. #ree'&es$

>rafts in foreign currencies drawn on our branchesOsubsidiaries re4uired in favour of collegeOuniversityOstudent will be issued free of exchangeOcommission.

7. Ot+er 'enef&t$

#oncession of :K in rate of interest if interest is served regularly in moratorium period. #oncession of :K in rate of interest in case of girl student. &oan covers all fees 3 expenses. "imple interest is charged at monthly rests during moratorium period. &ow processing charges of :K will be charged if applicant has not availed the disbursement of loan. If the interest amount of the loan, party is paying before moratorium period then :K discount.

68. Rate of Interest$ 6:I

Baroda Traders Loan

 BARO"A TRA"ERS 1OAN5

6. P*r%ose$ 6orking capital re4uirement >evelopment of shop /e.g. purchase of e4uipment, furniture etc. and not for purchase of shop0 )eed based re4uirement of funds for development of shop by way of loan up to a maximum of ;9K of the limit sanctioned for the working capital )on fund based facilities /i.e. bank guarantee and letter of credit0

:. E0&)&'&0&ty$
All persons engaged in trade of any commodityOgoods not prohibited by law or opposed to public interest. Individual, proprietorship, partnership concerns, firms, private ltd and regd.co-op societies engaged in trade of any commodityOgoods re4uired by the community and trading in them is not prohibited by law or proposed to public interest. The business units should have been established in the line of business for a minimum period of ; years. Trading unit established by our existing customer with satisfactory dealings of their close relatives, even if these are established for less than ; years. Trading units of non-customers having less than ; years establishment, with the prior approval of regional authority.

?. 1&-&t B-ar)&n$
+inimum5.s ;9<<< 3 maximum 5 .s.;<< lacs Advance value of collateral security with margin5 :<K on >. :9K on surrender value of &I# policies, )"# and ,ovt.bonds 9<K on approved sharesObonds I<K on latest valuation of immovable property OR ;<K of projected sales/ 2+&c+e/er &s 0ess0

C. Process&n) B ser/&ce c+ar)es

und based5 min-Q <.A9K i.e. .s.:<<<O +ax..s.A<<<<<O- Nservice tax )on fund based- as per extant guidelines.

D. Re%ay-ent$
%verdraft5 :; months subject to annual review >emand loan5 maximum J< *+I/depending on repayment capacity0

E. Sec*r&ty$
Tangible collateral securities in the form of mortgage of land /not agricultural land0 and building. 8roperty to be mortgaged may be only in the name of borrower, proprietor, partner, director or their close relatives /vi-. spouse, parent, brother, sister, son. daughter0 who should stand as a guarantor. )"#s, &I# policies !M8s, bonds, >.s, standing in the name of borrowerOproprietorOpartnerOdirector only. Age of property5 In case of 0oan$ Age of property should not be more than ;9 years old. $owever for properties which are older than ;< years but not more than ;9 years, branch is to ascertain structural soundness of the property by obtaining an approved engineer7s certificate, certifying that structural soundness as well as residual life of the building should be at least 9 years more than repayment period of the loan. or dwelling units, which are older than ;9 years, regional head may authori-e such cases on selective basis, subject to ascertaining structural soundness of the building by obtaining an approved engineer7s certificate, certifying that structural soundness as well as residual life of the building should be at least 9 years more than the repayment period of the loan. In case of o/erdraft$ 'uilding less than ;9 years old guidelines applicable to general advance to be followed %lder than ;9 years- the branch will be re4uired to carry out inspection of the property every year at the time of review of facility and obtain report from architect every A rd year along with valuation of property.

F. "oc*-entat&on5
d.p.note letter of continuing security hypothecation of goods/where ever applicable0 draft undertaking cum declarations undertaking to deal exclusively with us e4uitable mortgage of property +ortgage should be registered with sub registrar of assurance. The under taking from the borrower declaring that he does not owe any overdue statutory dues like sale tax, income taxOand have obtainedOrenewal license from concerned authorities re4uired for trading in the merchandise goods every year 8roperty to be mortgaged must be in the name of either5 'orrower 8roprietor, partner, director #lose relative of borrower who should stand as guarantor Third party property provided credit facility is for .s.: lac and above 9. Ot+er %o&nt$ If yearly sales of customer are above I< lac then return should be audited compulsorily. .egistration certificate is must if MAT is to be charged and also re4uired challan. &ast ; years of income tax return or a*d&ted re%ort If the account of customer is not in the '%' then credit report of present bankers is must If company then constitution is re4uired, :0 +emorandum ;0 Article of association Interest rate is to be depends on current rate of '8&.

BARO"A MORT3A3E 1OAN

'aroda mortgage loan is divided in to two sub products. i.e. :0 %>A8 /overdraft against the property0 ;0 &oan against property

The mainly difference between these loan is, In %>A8 the interest will be served on monthly basis on the amount withdrawn and . In +ortgage loan, the *+I will start from the next month from the loan disbursement, there is provision for A months moratorium period

6. P*r%ose$
or all legitimate purpose except for speculations.

:. Ty%e of fac&0&ty$
O/erdraft>ter- 0oan

?. E0&)&'&0&ty$
"alaried employeesOprofessionals, self employed 3 others, who are income tax assessed for last A years. Age5minimum-;: years +aximum-J< years /T+e c*sto-er4s a)e Ko/erdraft>0oan ten*re s+o*0d not e<ceed ED years. +inimum gross annual income5 .s.J<<<<O-

C. 1&-&t$
A0 +inimum-.s.: lac b0 +aximum5 for rural branches5 .s.9 lac All other branches 5 .s.:<<.<< lacs. /S*'5ect to &nco-e cr&ter&a, re%ay-ent ca%ac&ty and ad/ance /a0*e of t+e %ro%erty offered as sec*r&ty.

D. Inco-e cr&ter&a$

"alaried class5 AJ times of net monthly income. %ther individuals5 A.9 times of net average /last three years0 annual income. Income of all the joint owners of the property who are coborrowers can be clubbed. ii. #o-borrower5 The facility can be considered to an earning memberOmembers of a family against the property standing in the name of any memberOmembers of the family. +embers of the family comprises of spouse, father, mother, sonOs, brotherOs 3 brothers7 wives and daughterOs /subject to the condition that they are living in the family jointly, this is to be ascertained through interview of applicant0 Net -ont+0y &nco-e$ ,ross salary less professional tax, income tax and 8. Net ann*a0 &nco-e$ Income net of professional tax and depreciation, if any. i.

E. Re%ay-ent ca%ac&ty$
Total deductions should not exceed J<K of the gross income/including installmentOrepayments towards proposed facility0

F. Rate of &nterest$
:.9<K above '8&. /presently '8&. is :;K.so :A.9<K

9. Pena0 &nterest$
;Kp.a.on overdue amount

7. Mar)&n$
I<K of the market value of the property to be mortgaged

68. Sec*r&ty$
*4uitable mortgage of5 :. .esidential or commercial property ;. 8lot of land allottedOpurchased from any development authority. The allotmentOsale of plotOland by such development authorities should not contain any clause stipulating fixed time limit for construction of houseOcommercial building. &oanOoverdraft against tenanted property should not be considered except in case where the property is given on lease to 8"(, govtO semi govt. enterprises, large corporate, banks, financial institutions 3 insurance companies.

66. Persona0 )*arantee$

(p to .s.:< lacs5 guarantee may not be insisted upon. %ver .s.:< lacs5 third party guarantee of an individual having ade4uate worth must be obtained.

6:. Re%ay-ent %er&od$

&oan5 +aximum CI months in e4ual monthly installments /*+Is0 +aximum -orator&*- %er&od=? -ont+s O/erdraft i. The facility may be continued without any condition of reduction till the maximum age specified ,if desired by the borrower, subject to5 Annual review 3 satisfactory conduct of the amount +inimum annual turnover in the account is at least ;9K of the limit.

ii.

6herever it is observed at the time of review that stipulation of annual turnover is not complied with, the limit should be reduced annually as under5 +aximum period of overdraft5 :< years. .eduction in operative limit proportionately by the end of each year, synchroni-ing with review of the account. A0ternat&/e0y 'ranc+ -ay e<%0ore t+e %oss&'&0&ty of con/ert&n) t+e o/erdraft fac&0&ty &n to ter- 0oan and f&< EMI for reco/ery of t+e 'a0ance a-o*nt.

6?. Per&od of fac&0&ty$ :; months subject to review 6C. !a0*at&on of %ro%erty$

Maluation of property should be got done by our banksO ,ovt approved valuer as per extant guidelines at the time of considering the facility. Ho2e/er, &f t+e %ro%erty +as 'een acH*&red 2&t+&n 0ast D years, a-o*nt of re)&stered sa0e deed -ay 'e ta(en as /a0*e of t+e %ro%erty ;&n s*c+ cases fres+ /a0*at&on -ay 'e d&s%ensed 2&t+ and 0oan a-o*nt &s cons&dered on t+at /a0*e.

6D. Ot+er %o&nts$

 The bank shall have right to progressively reduce the limit of overdraft sanctioned hereby every yearOmonth from time to time during the avalment of the %> limit. $owever, it is agreed and understood that such commitment for progressive reduction in the overdraft limit is and will be without prejudice to the rights of the bank to call for accelerate and demand repayment of entire outstanding amount in overdraft limit at any time and from time to time. Interest to 'e reco/ered as B 2+en a%%0&ed &n t+e acco*nt

PRE!ENTI!E !I3I1AN E 3UI"E1INES$

Ban( &ss*es %re/ent&/e /&)&0ance )*&de0&nes &n reta&0 0oans se)-ent frot&-e to t&-e so t+at fra*ds B for)ery do not +a%%en. Here so-e &nc&dences 2+ere&n t+e 'orro2ers +a/e fra*d*0ent0y tr&ed to a/a&0 0oans fro- t+e 'an( 'y %rod*c&n) fa0se &nfor-at&on, fa(e and for)ed doc*-ents . akeOforgedOTerox copy of the title deeds.

!?# norms not strictly compiled with and borrowers were not residing at the places as informed to the bank. alse copies of IT returns were submitted. (pon verifying copies of income tax returns for last three years from original it was revealed that all the returns were filed on one date whereas different dates appearing on -erox copies submitted to bank were of respective years.

Applicant for availing home loan submitted in fake construction agreement. There was no builder in existence. abricated statement of account was submitted in few cases, which was revealed after cross checking with other bank7s branches.

In many cases #I'I& data interface gave the information about other bank borrowings in respect of applicants who intentionally did not disclose the information at the time of applying for loan from our bank. 8re sanction inspection revealed that a person who has applied for home loan does not have any business but has managed to fix signboard at the shop, which belongs to someone else. Income of spouse was considered based on false documents though she was not engaged in gainful employment. In some cases properties were overvalued substantially for getting maximum loan. #onstruction was not as per approved plan and of poor 4uality 3 low value.

A fraud is one area of concern where there is total loss in most of the cases. $ere some )*&de0&nes so, that frauds can be averted. !?# norms to be strictly compiled with and identity of the borrowersOguarantors to be verified by making a visit to their residences andOor work places. The borrowers are re4uired to visit the branch personally to execute all loan documents. Authenticity of salary certificates and income tax returns submitted by the borrowers to be independently verified from the employers and income tax authorities through charted accountantsOagencies empanelled by our bank for the purpose. Income assessment is very important tool to decide the loan amount, as well as permissible *+I.several frauds have occurred due to inflated income assessed by including various other sources of income which are not of stable nature like interest income, rental income, and agricultural income etc.due care has to be taken to verify the genuineness of the source 3 kept on record. "trict watch to be kept on repayment of installments and follow up is done promptly. 'ranches should be more cautions in case of higher number of cases are coming through one particular builder. *4uitable mortgage can also be registered with sub registrar office on payment of re4uired fee. acilities must be released only after compliance of all the terms of sanction and vetting of documents.

8re-sanction inspection including visit to the place of residence and work as well as property to be purchased, must be carried out independently, preferably without giving prior information to the applicant. In case of applicants other than salaried persons, the original taxpayer7s copy of challans of tax deposited is verified to ascertain genuineness of income tax returns and also the assessment orders for earlier years. $ousing proposals of the persons, who have filed their income tax returns of last three years in one lot, should not be entertained. )o middlemen should be entertained for any retail credit proposals.

 6hether applicants are not maintaining their saving account with bank, the branch should obtain statement of principal account of the applicant, wherein salary is being credited. #redit rating in prescribed module relevant to the retail loan proposal should be carried out in case before taking credit decision. Maluation report submitted by govtO approved valuer in respect of immovable property, the processing officer or asset inspecting officer or sanctioning authority should assess the value of the property independently on the basis of prevailing market rates and record the same in the file. *ach disbursement, whether need to be made in stages, should be backed by siteOspot inspection and relative report should be kept on record. 8ost-sanction inspection after final disbursement should be carried out to ensure that borrower has taken possession of the houseOflat besides verification of end use of funds.

SGOT ANA1YSIS
STREN3TH$ #&nanc&a00y stron) 'an( !ery o0d 'an( A))ress&/e -ar(et&n) 3ood re%o Tec+no0o)&ca0 ad/anced

GEAKNESS$ 3*&de0&nes are not f0e<&'0e Po2er &s not decentra0&,ed OPPORTUNITIES$ Ne2 area &s de/e0o%&n). So, t+ere &s /ast c+ance for +o*s&n) 0oan. 3*&de0&nes to 'e des&)ned &n s*c+ a 2ay t+at needs of t+e a00 ty%e of %ros%ect&/e 'orro2ers s+o*0d 'e f*0f&00ed. THREATS$ T+&s &s t+e nat&ona0&,ed 'an( so, co-%et&t&on -ay 'e 2&t+ %r&/ate 'an(s A))ress&/e -ar(et&n) strate)&es 'y %r&/ate 'an(s Entry of fore&)n 'an(s &n near f*t*re.

1EARNIN3S
The most important part is that they make me feel employee of the organi-ation rather than a trainee and allow me to flourish in each and every department. They were so generous to me that at any mistake, rather scolding they taught me how to correct it 3 allow me to learn from that mistake. &earning include, :. %verview of the banking industry 3 their operation ;. >eep knowledge of loan 3procedure A. 8roposals that the bank has approved for the disbursement of loan I. $ow to come out from the different problem regarding loan 3 how to interact with customer. 9. 6orking on #.I"I& and learning some of its function J. The most important learning of #I'I&3 how to learn this #I'I& =. !nowledge 3 functioning of &A8" software C. Awareness of I)A#&* software.

E<%er&ence at R1#
I would like to conclude my project with a feeling of having gained enormous knowledge in the field of advances. +y project has taught me a lot and has helped me sharpen my management skills for application aspect. I had wonderful experience for which I am greatly thankful to the entire staff of .& who have continuously taught me by guiding in each and every step. It was a memorable experience of working in such a lively 3 dedicated atmosphere. )ot to forget to mention that my two months training has removed my misconceptions regarding the working of public sector bank. 1ast0y, I 2o*0d conc0*de &t 2as s*c+ a -e-ora'0e e<%er&ence for -e to 'e a %art of BOB R1#. T+an(s a 0ot to a00 staff -e-'ers of BOB for s*c+ a )ood co=o%erat&on.

BIBI1IO3RAPHY B GEBO3RAPHY
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