8 Security: :
- Primary Hypothecation of assets financed by the Bank
- Collateral
NIL Credit Guarantee Fund Trust for micro and small
enterprises covers loans under Artisan Credit Card. The
fees for the same will be reimbursed by the Development
Commissioner (Handicrafts, Ministry of Textiles, GOI
through their Regional Directors.
9 Processing fees As applicable to SSI segment but no fees to be charged
for review/renewal.
10 Repayment The portion of limit used for purchase of tools, etc. may
be made repayable in 3years. The rest of the limit will be
a revolving cash credit limit to be reviewed every year
but valid for 3 years subject to satisfactory conduct of
account.
11 Documentation : As per simplified SME documentation
12 Special features : Ä New units can also be financed
Ä Beneficiaries registered with the Development
Commissioner (Handicrafts) will be eligible for
insurance cover under group guarantee scheme
for which the premium will be paid by the
government and the beneficiaries in the ratio
60:40
13 Methodology and The beneficiaries of the scheme will be issued a photo ID
Operation of the card which contain name, limit and validity of the facility.
account A passbook will also be issued which will contain all
details of the beneficiary including address, and all
transactions will be recorded in it on an ongoing basis.
Product Highlights:
This scheme aims at providing adequate and timely assistance to the artisans to meet their credit
requirements both for investments as well as for working capital in a flexible manner and at
reasonable rate of interest.
The facility will be extended by way of a revolving cash credit and the limit will be fixed based on
the assessment made as per Nayak Committee norms. The assessment of the credit limit should
include the cost of tools and equipment required. A photo ID card and a passbook will be issued
and the limit will be valid for 3 years subject to annual review.
Marketing tips:
Ä The office of the Development Commissioner (Handicrafts) can provide a list of artisans
registered with them. Preference should be given to these registered artisans for giving
the artisan Credit Card.
Ä Clusters of artisans , especially those who are supported by a Self Help Group should
also be preferred for offering this product.
Ä The borrower need not furnish any financial data and assessment has to be made based
on the level of activity in the unit and other corroborative details.
FAQs
Ä Can existing borrowers be given this facility?
Existing borrowers under the Bank's are eligible for this scheme. However, beneficiaries
of other government sponsored schemes are not eligible for this facility.
Ä What is the margin to be stipulated for the credit limit?
Upto Rs.25000/-, no margin & over Rs. 25000/- , 20% margin has to be fixed.
Back to
Index
SCORDING MODEL – SME CREDIT CARD / ARTISAN CREDIT CARD
Sl. Parameters Max. Marks Criteria Marks
No. Marks Scored
1. Age 3 18 – 30 3
31-45 2
46 & above 1
2. Owning House 3 Own (NM) 3
Own (M) 2
Not owning a house 0
3 Academic 5 Technical 5
Qualification Professional / PG 4
Graduates 3
Less than Graduate 2
4. Experience 4 More than 5 years 4
In line of trade 3-5 years 3
1-3 years 2
Less than one year 1
5. Loyalty 3 Dealing with SBI
(Deposit / Advances) More than 3 years 3
1-3 years 2
Less than one year 1
6. Spouse 2 Employed 2
Details Home-maker 0
7. Assessed for IT 2 Assessed 2
Not assessed 0
8. Has Life Insurance Policy 2 Yes 2
No. 0
9. Track record of repayment of 3 Prompt/No loan 3
Personal loan Irregular
10. Continuous profits 5 Last 5 years 5
Last 3 years 3
Last year 1
11. Sales show rising trend 5 Last 5 years 5
Last 3 years 3
Last year 1
12. Marketing 3 Tie-up arrangement in 3
operation
Ancillary 2
Others 1
13. TOL./TNW 5 Less than 1 5
1 to 2 4
2 to 4 3
More than 4 0
14. CA / CL 5 More than 1.33 5
1 to 1.33 3
Less than 1 0
15. DSCR 5 More than 2 5
1.5 to 2 3
1 to 1.5 2
Less than 1 0
16, Routing of sales turnover through the 5 100% 5
account 75% 4
50% 3
>50% 1
Total 60
N.B. In case any of the above parameters is not applicable, the scoring should be nomalised out of 60.
SME CREDIT CARD
1. Target Group : SSI units, tiny units, village industries, Retail traders,
professionals, self- employed, etc..
2. Eligibility : Customers of the following segments with a satisfactory
track record for the last two years :-
Ä Small industrial units
Ä Small retail traders
Ä Professionals
Ä self employed persons
Ä Small business enterprises
Ä Transport operators
3. Purpose : To meet any kind of credit requirements including
purchase of shop
4. Type of facilities : Cash Credit and/or Term Loan
5. Quantum of Finance : Maximum - Rs. 10lacs
6. Margin : 20%
7. Rate of Interest : As applicable to the market segment
8. Security: : Hypothecation of stock in trade, receivables, machinery,
- Primary office equipment
SSI – No collateral is to be insisted upon
- Collateral
SBF—For loans more than Rs.25000/- charge over
movable /immovable property/third party guarantee
9. Processing fees As applicable to SSI/SBF units
10. Repayment : a) The working capital component should be reviewed
every year provided the credit summation is not less
than 50% of the projected turnover. If the credit
summation is less than 50%, then a repayment
schedule should be fixed for the outstandings in
suitable monthly instalments.
b) The Term Loan component should be repayable in a
maximum of 5years in suitable instalments.
11. Documentation : As per the nature of the facility
12. Special features : Assessment A scoring model has been designed and
those units which score a minimum of 60% qualify under
the Scheme for which the working capital assessment
will be made as under :-
i) For small business, retail traders, etc.,
- 20% of their annual turnover OR
- 20% of turnover of the last 12 months in
their accounts, whichever is higher.
ii) For self- employed and professionals
- 100% of gross annual income as declared
in their income tax return
iii) For SSI units
- As per Nayak Committee norms ie.,
20% of annual turnover
Validity The limit will be valid for 3 years but is subject
to annual review
13. Methodology and : - The borrower will be issued a photo identity card
Operation of the indicating sanctioned limit and validity of the limit.
account - Cheque book to be marked as SME Credit Card
- Pass Book to be issued
- Submission of stock statements is waived but should
be obtained once in the last quarter to meet RBI
stipulations
- Brief opinion report should be recorded.
Product Highlights:
Small business units small industries in the tiny sector, retail traders, professionals and self
employed persons, requiring working capital needs are very often unable to provide the
elaborate financial data sought by banks from time to time for assessing their credit needs.
To obviate this difficulty faced by the small units in SSI & SBF sectors, the Bank has
designed this product which comprises of a photo identify card and a passbook which gives
details of the limit and validity of the facility. The assessment is based on a simple scoring
model and units which score 60% or more are eligible for this working capital cum term
loan facility upto Rs.10 lacs valid for a period of 3 years.
Marketing Tips
• This is a very user friendly product for any type of entrepreneur located in metro,
urban, semi urban or rural areas.
• Small SSI units, retail traders, self employed professionals, small business
enterprises etc., are the ideal target group.
• The limit being valid for 3 years for properly conducted accounts is a major plus point
of this product.
• Stock statements are not required to be submitted except once a year.
FAQs
Ä Can the limit be increased within the 3 year validity of the card ?
Yes. If the account has been conducted well and the unit requires a higher limit , then
the limit can be enhanced subject to a maximum of Rs.10lacs.
Ä Can a Kisan credit card holder be given this card ?
No. Any borrower is entitled to only one type of a credit card.
Back to
Index
Application for SME / ARTISAN Credit Card
Telephone No.
Telephone /Mobile
No.
e-mail address
05. Age of 18-30 Years 31-45 Years
proprietor/Mng. 46 & above
Partner
06. Owning a House Own (Not mortgaged) Own
Not owning
Total Total
Loans Repaid
Others
18. TOL CA
TNW CL
19. DSCR
Place:
Date: Signature of the Applicant.
Note: Documentary proof in the form of originals with self attested copies to be
produced for verification. Originals to be returned and attested copies to be filed along
with application.
SCORDING MODEL – SME CREDIT CARD / ARTISAN CREDIT CARD
Sl. Parameters Max. Marks Criteria Marks
No. Marks Scored
1. Age 3 18 – 30 3
31-45 2
46 & above 1
2. Owning House 3 Own (NM) 3
Own (M) 2
Not owning a house 0
3 Academic 5 Technical 5
Qualification Professional / PG 4
Graduates 3
Less than Graduate 2
4. Experience 4 More than 5 years 4
In line of trade 3-5 years 3
1-3 years 2
Less than one year 1
5. Loyalty 3 Dealing with SBI
(Deposit / Advances) More than 3 years 3
1-3 years 2
Less than one year 1
6. Spouse 2 Employed 2
Details Home-maker 0
7. Assessed for IT 2 Assessed 2
Not assessed 0
8. Has Life Insurance Policy 2 Yes 2
No. 0
9. Track record of repayment of 3 Prompt/No loan 3
Personal loan Irregular
10. Continuous profits 5 Last 5 years 5
Last 3 years 3
Last year 1
11. Sales show rising trend 5 Last 5 years 5
Last 3 years 3
Last year 1
12. Marketing 3 Tie-up arrangement in 3
operation
Ancillary 2
Others 1
13. TOL./TNW 5 Less than 1 5
1 to 2 4
2 to 4 3
More than 4 0
14. CA / CL 5 More than 1.33 5
1 to 1.33 3
Less than 1 0
15. DSCR 5 More than 2 5
1.5 to 2 3
1 to 1.5 2
Less than 1 0
16, Routing of sales turnover through the 5 100% 5
account 75% 4
50% 3
<50% 1
Total 60
N.B. In case any of the above parameters is not applicable, the scoring should be normalised out of 60.
APPRAISAL NOTE FOR SME CREDIT CARD
(Quantum of Finance Maximum Rs.10.00 lakhs)
Phone/Cell No.
5.Nature of activity
6. Banking with us from
7.Details of Limits as on Existing Limits Proposed Limits
date. (Rs.in lakhs) CC(Hyp) CC(Hyp)
TL TL
LC/BG LC/BG
Total indebtedness
8.Brief History 1.
(Brief bullet points only) 2.
(on Management, 3.
products, marketing tie- 4.
up etc.,) 5.
16. Recommendations
Recommended for sanction of Working Capital limit of Rs.
Term loan of Rs.
Total limit --------------
On the above terms and conditions.
Signature Appraised & Assessed by Sanctioned by
Name
Designation
Date
Enclosure:
Applicant’s application & others
Controlled by
Signature
Name
Designation, Date
Annexure-I
SCORING MODEL - SME CREDIT CARD
NAME OF THE UNIT:-
Sr.No. And Parameters Max Marks Marks scored Criteria Marks
18-30 3
1. Age 3 31-45 2
46 & above 1
Own(NM) 3
2. Owning House 3 Own(M) 2
Not owning 0
Technical 5
Professional/PG 4
3. Academic Qualification 5
Graduates 3
Less than grad. 2
Last 5 years 5
10. Continuous Profits 5 Last 3 years 3
Last year 1
Last 5 years 5
11. Sales show rising trend 5 Last 3 years 3
Last year 1
Tie up arrngt. 3
12. Marketing 3 in operation Ancillary 2
Others 1
Less than 1 5
1 to 2 4
13. TOL/TNW 5
2 to 4 3
More than 4 0
III. Comments on Production aspects: (covering location advantages, availability of raw material
and other utilities like water, power, fuel, labour etc.
Means of finance
Own funds
Borrowings from
friends and
relatives
Bank finance
others
Total means of
finance
Debt /Equity-
Average D.S.C.R-
PROPOSAL FOR REVIEW OF WC AND TERM LOAN SANCTIONED UNDER ‘SME CREDIT
CARD’ SCHEME.
1.Name of the unit
2 Constitution Proprietorship/Partnership/Private limited Company
3.Name of the
Proprietor/partners/
/directors
4. Business Address
Phone/Cell No.
5.Nature of activity
6. Date of Last
Sanction/review
7. IRAC Position as on
8. Present Position of Facility Limit DP O/S Irregularity if
Accounts as on date of any
review. CC
(Rs. In lakhs) TL
LC/BG
Total indebtedness
9. Conduct of WC a/c Annual Turn over estimated Rs.
(Rs. In lakhs) Annual Credit Summations in the account Rs.
(Atleast 50% should be routed in the account, other
wise sanctioning authority has to take a view on
continuation of facility)
Value of the account: Rs.
(Interest/Exchange/commission Booked)
Any Cross selling Products Booked :
(Give the name of the product booked)
10.a) Whether earlier
sanctioned terms complied
with?
b) Comments on non-
achievement of estimated
sales/profit.
c)No.of times the account
was irregular last year and
reasons.
11.Comments
(from risk angle)
(On other associates,
Competition, quality of
products, I&A comments,
CIBIL report for individuals
etc., and other relevant to
Risks. Bullet points only)
11. Recommendations
The Conduct of WC loan and Term loan has been reviewed and found satisfactory.
Recommended for continuation of Working Capital limit of Rs.
On the above terms and conditions as already set out in the original sanction dated—
(mention the date)
Appraised by Approved by
Signature
Name
Designation
Date
SWAROJGAR CREDIT CARD
8 Security: :
- Primary Assets acquired from Bank finance
- Collateral
NIL
9 Processing fees Waived
Product Highlights:
This is a product similar to the Kisan Credit Card. Self employed persons in activities other
than agriculture in urban and other areas are eligible to apply for this product for meeting
their investment or working capital requirements. The borrower will be provided with a
photo ID card and a passbook which have to be produced at the time of each withdrawal
from the account. SHGs can also be issued this card.
Marketing tips:
SHGs operating in the area of operation can be offered this product as it would have an element of
group guarantee in such a case and improves the chances of repayment.
Back to
Index
CYBER PLUS
6 Margin : Rs.9000/-
8. Security: :
- Primary Hypothecation of the assets purchased from Bank
finance
- Collateral
NIL Can be brought under CGTSI scheme
9 Processing fees Waived
Product Highlights:
As a step towards building the technological gap between the urban haves and the rural have nots,
nLogue, an NGO comprising of members of IIT, Chennai, have come together to provide technical
and logistic assistance to rural entrepreneurs for setting up internet kiosks christened "CHIRAG" at
rural centres. The Bank, on its part, has evolved this product to provide finance for this project for
individual entrepreneurs in rural centres. This can also be taken up under the KVIC schemes which
will provide a subsidy of 25% to 30%.
Generation of income for this project will be through providing basic internet services, tie-up with
government departments for e-governance, for payment of statutory dues, for getting information
regarding crop yields, market prices, agriculture inputs, educational facilities such as coaching for
exams, obtaining results, marks lists, admission to professional college etc.
Marketing tips:
Ä Tie up with nLogue to market this product
Ä Identify trained youth especially in rural and semi-urban centres and refer them to
nLogue for further due diligence.
FAQs
Ä What are the margin requirements for this scheme?
The cost of the scheme has been estimated at Rs.59000/-. Of this, the maximum loan
permissible under this scheme is Rs.50000/- . The rest will be the margin which has to
be met either from own sources or from KVIC margin money scheme or any other
scheme.
Back to
Index
SME SMART SCORE
7. Rate of Special rates of interest are charged for facilities granted under SME
Interest Smart Score. These are furnished in the circulars issued from time to
time for interest rates applicable to SIB segment.
8. Security:
- Primary Hypothecation of stocks and assets financed by Bank
- Collateral
As per Bank's extant norms for WC and TLs
9. Processing As applicable to SSI /SBF / C&I units
fees
10. Repayment Ä WC loan to be reviewed annually and renewed once in two
years.
Ä TL not more than 5years excluding moratorium not
exceeding 6months
11. Documentation As per simplified SME documentation
This product is designed to avoid delays in credit delivery due to cumbersome assessment
processes. A simple scoring model has been designed for which all the data required has to be
furnished at one go by way of an application form which has also been specially designed for this
product. Units which score a minimum of 60% are eligible for this product. This product can be
given to units in C&I, SSI and SBF segments for credit requirements between Rs.5 lacs to Rs.50
lacs( Rs.25lacs for T&S) based on the projected turnover and / or project cost. The loan quantum
should be a minimum of 20% of turnover and/or, 67% of project cost. If a proposal does not fit into
this model, it can also be considered on usual Bank's terms on merits.
Marketing tips:
Ä This product is especially useful in Trade advances and small industries
Ä All SMEs especially those which are individually managed proprietary concerns/
partnerships / private limited companies are the target group.
FAQs
Ä How to arrive at the quantum of loan for units engaged in trade for working capital
purposes?
While SSI units qualify for a limit of 20% of their projected annual turnover (Nayak
Committee norms), the trading units may be extended a working capital limit of 15 % of
their projected annual turnover subject to a maximum of 25% increase in the projections
over the turnover of the previous year.
Back to
Index
SME SMART SCORE
LOAN APPLICATION FORM
The SME Smart Score is available ONLY if the answers to all the following questions are “Yes”
2. Whether none of the promoters has defaulted in payment of loans / guarantee to the
lender/s?
3. Whether all the clearances including but not limited to environmental clearance for the
project has been obtained / satisfactory evidence of their being made available will be
provided?
4. Whether the borrower(s) belong to the area or their antecedents could be verified with
satisfaction?
SME SMART SCORE
LOAN APPLICATION FORM
Please fill up this form only if the answers to all the following questions are “YES”
1. Whether the chief promoter / Chief executive is between 18 and 65 years of age
2. Whether the promoters are not defaulters to the banks/ financial institutions
3. Whether all clearances for the project have been obtained
4. Whether the promoters belong to the area of operation of the branch and have satisfactory
references?
General :
Name of the Company / Firm _______________________________________________
Address (If factory and office are having different Addresses, Give the Address Nearest to the branch First)
Address :
Residential Address :
I certify that all information furnished by me / us is true, correct and complete. I have no borrowing
arrangement for the company / firm with any bank except as indicated in the application form.
There are no over dues / statutory dues by me or the firm / company. No legal action has been
taken against me / firm / company. I shall furnish all other information that may be required by
Bank in connection with my application. The Information may also be exchanged by you with any
agency you may deem fit you, your representative of any other agencies as authorized by you may
at any time inspect / verify my / our assets, books of account etc. in our factory business premise
as given above. You may take appropriate safeguards / action for recovery of bank’s dues
including publication of defaulter’s name in website/ submission to RBI. I further agree that my loan
shall be governed by the rules of State Bank of India as may be in force from time to time.
Place Signature of Chief Promoter / Chief Executive
Date
BUSINESS DETAILS
Does the product require special know-how? If so, are you in possession of the know-how?
Whether your line of activity falls under priority sector ?
How do you plan to produce them? Are they available on credit? If so what are the terms of credit?
How do you plan to ensure the quality of your product? Any special steps being taken?
What about utilities like water, power etc. Please describe the requirements and how are they met?
Whether you need skilled labour? Please describe your plans for sourcing and employing skilled
labour?
Any special reason to locate your business at the present location? Is there any advantage in
procuring the raw materials locally? Is the local market enough to sell the finished product of your
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________
What is the level of competition for the product ? How do you plan to meet the competition?
Give the total outside liabilities for the last 3 years and your tangible networth.
TOL / TNW
Give the details of cost and the means of finance for your project
Item Why do you need to What is the Cost of How do you proposed to
purchase the item? basis of your the item acquire/ procure the item
cost
Land
Building
Machinery
Others
Total cost
What are the means of finance?
Has the project been vetted by the consultancy cell of the Bank or consultants of repute? Give
details
______________________________________________________________________________
________________________________________________________
What is the repayment period you are looking for the term loan?
What will be the annual cash accruals?
What will be your liability towards payment of
installments and interest on term loan in a year?
TOTAL
Please tell us about your further plans : What is the level of sales you are projecting? Briefly
describe the basis for your projection
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________
What is the level of receivables you are expecting in terms of months’ of sale?What is the level of
finished goods inventory you are expecting to maintain in terms of months’ of sale?
______________________________________________________________________________
______________________________________________________________________________
______________________________________________________________________________
______________________________________________
I certify that all information furnished by me / us is true, correct and complete. I have no borrowing
arrangement for the company / firm with any bank except as indicated in the application form.
There are no overdues / dues owed by me or the firm/company. No legal action has been taken
against me / us firm / company. I shall furnish all other information that may be required by Bank in
connection with my application. The Information may also be exchanged by you with any agency
you deem fit. You, your representatives of any other agencies as authorized by you may at any
time inspect / verify my fixed assets, books of account etc. in our factory /business premises as
given above. You may take appropriate safeguards/action for recovery of bank’s dues including
publication of defaulters’ name in web site/submission to RBI. I further agree that my loan shall be
governed by the rules of State Bank of India as may be in force from time to time.
Name of the Chief Promoter / Chief Executive : (In case of partnership concerns where the partners are
having equal stake the personal profile of the active promoters as declded by the concern could be taken)
1. Personal Details :
1 Below Matric
2 A. For existing units which have not so far availed any loan from the Bank. If takeover from
another Bank, takeover norms, prescribed by the Bank are to be first evaluated and fulfilled.
Sr. Parameters Maxim Marks Criteria Details of
No. um Scored Documents
Marks Verified
1. Years in business 5 5 5 years & over
3 3 years to < 5 years
2 1 years to <3 years
2. Continuous net profits 5 5 Last 3 years
(before tax) 3 Last 2 years
2 Last year
3. Sales show a rising trend 5 5 Last 3 years
3 Last 2 years
4. Factory premises 3 3 Owned or over 5
year lease
0 Rented
5. Know-how 2 0 Specialized know-
how
2 Common knowledge
6. Line of activity 1 1 Priority Sector
0 Non priority Sector
7. Competition 4 4 Low
3 Medium
2 High
8. TOL/TNW (Quasi equity to 5 5 2 & below
be added to TNW and 3 >2 but upto 3
reduced from TOL) 2 >3 but upto 4
1 >4 but <5
9a. Quality of receivables 5 5 Up to 3 months of
sales
3 >3 but up to 4
months of sales
2 >4 months of sales
9b. Quality of finished goods 5 5 Upto 1 month of
inventory sales
3 >1 upto 2 months of
sales
2 >2 months of sales.
10. Repayment period 5 5 Upto 3 years
(Not applicable for only 3 >3 to 5 years
working capital loans) 2 > 5 years
11. Gross DSCR (not applicable 5 6 >2
for only working capital 3 Between 1.5 tand 2
loans) 2 < 1.5
Marks Scored 50/40
Items 10 & 11 are not applicable for working capital loans alone. In that case the score should be
normalized for 50 (marks scored / 40) x50) Minimum Score should be 25.
2B. For Greenfield Ventures :
Sr. Parameters Maxim Marks Criteria Details of
No. um Scored Documents
Marks Verified
1. Branch is in the know of 10 Yes
business ( includes cases
where the Project is 0 No
appraised by consultants of
repute)
2. Manufacturing / Servicing / 5 Yes
trading / process is well
known to applicant to 0 No
produce / service / trade the
required quality of the
product
3. Location advantage 2 Yes
0 No.
4. Availability of utilities 2 Easy
including labour 0 Ok
5. Firm’s capacity to sell the 5 Good
product at the price and
quantity. 0 OK
6. Line of activity 1 Priority Sector
0 Non Priority Sector
7. TOL / TNW (Quasi equity is 5 1 and below
to be added to TNW and 3 >1 upto 2
reduced from TOL) 2 >2 up to 3
1 >3
8a. Quality of receivables as per 5 Up to 3 months of
projections sales
3 More than 3 up to 4
months
2 More than 4 months
8b. Quality of finished goods 5 Up to 3 years
inventory as per projections 3 Above 3 to 5 years
2 Above 5 years
10. DSCR (not applicable for 5 >2
only working capital loans) 3 1.5 to 2
2 <1.5
Marks Scored 50 / 40
Minimum Marks are 10 (except in cases where Collateral should not be asked as per Bank’s
Office
Office
14. Brief background & History :-( to be brief and in bullet points only)
(Comments on management, products, tie-up arrangement if any, quality
approvals/certifications etc)
16.Term Loan:
Project Details Project Cost Rs.
Bank Loan Recommended Rs.
(As per assessment in annexure-III)
Debt /Equity
19. Whether (a) the name(s) of the Individual/Directors appear(s) in RBI’s list of defaulters/RBI’s
list of willful defaulters & (b) the Individual/Directors name figures in ECGC’s caution list
PARTICULARS DATE POSITION
RBI Willful Defaulters list(Non-Suit Filed)Rs.25lacs and
above
CIBIL List(Suit filed) Rs.25 lacs and above
ECGC specific approval list
20. Comments on I&A and other audit reports, which have an impact on credit risk on the unit:, if
any:
21. If the unit has scored less than 60% marks in any of the individual parameters in SME Smart
Score, please comment critically on those parameters (even though the aggregate score may be
more than 60%)
22. Recommendations;
Recommended for sanction of Working Capital limit of Rs.
Term loan of Rs.
Total limit --------------
Signature
Name
Designation
Date
Enclosure:
Applicant’s application.& others
Statement of Credit Score arrived as annexure -I.
Controlled by
Signature
Name
Designation
Date
Annexure-I
CREDIT SCORING CRITERIA
1. Personal details :
2.A For existing units which have not so far availed any loan from the Bank. If takeover from
another Bank, takeover norms, prescribed by the bank are to be first evaluated and fulfilled.
Sr. Parameters Maximum Marks Criteria Marks
No. marks Scored
1 Years in business 5 5 Years & 5
over 3
3 Years to < 1
5
1 year to < 3
2 Continuous net profits 5 Last 3 years 5
(before tax) Last 2 years 3
Last year 1
3 Sales show a rising trend 5 Last 3 years 5
Last 2 years 3
4 Factory premises 3 Owned or
over 5 years 3
of lease 0
Rented
5 Know-how 2 Specialised 2
Common 0
6 Line of activity 1 Priority 1
Sector 0
Non priority
7 Competition 4 Low 4
Medium 2
High 0
8 TOL/TNW (quasi equity to be 5 2 & Below 5
added to TNW and reduced > 2 but upto 4
from TOL) 3 2
> 3 but upto 4 1
> 4 but < 5
9 a Quality of receivables 5 Upto 3
months of 5
sales
> 3 but upto 4 1
months of
sales 0
> 4 months of
sales
9 b Quality of finished goods 5 Upto 1 month
inventory of sales 5
> 1 but upto 2
months of 1
sales
> 2 months of 0
sales
10 Repayment period (not 5 Upto 3 years 5
applicable for only working > 3 to 5 years 3
capital loans) > 5 years 0
11 Gross DSCR (not applicable 5 > 2 5
for only working capital loans 1.5 To 2 2
< 1.5 0
50
MARKS SCORED
Items 10 & 11 are not applicable for working capital loans alone. In that case the score should be
normalized for 50 (marks scored/40)*50
Minimum score should be 25
3. Collateral conditions:
Minimum Marks are 10 (except in cases where Collateral should not be asked as per Bank’s
norms, where the minimum marks will be NIL)
Annexure-II
i)Assessment of LC limits:
Rs.in lakhs
Annual Raw Material purchases
Monthly Raw Material purchases
Monthly Raw Material purchases through LC’s @ % (A)
Average Usance Period (B)
Lead Time and transit period (C)
Total of ‘B’ and ‘C’ (D)
LC limits required (= A X D)
Recommended LC Limits
Assessment of BG limits:
Rs.in lakhs
Outstanding BGs as on
Add: BG’s required during the next 12 months, as under
1.Earnest Money deposit
2.Security Deposit
3.Advance Payment BG
4.Retention Money Deposit/Maintenance Guarantee
5. Guarantees on account of sales tax, commercial tax and excise duty
payments
Less: Estimated maturity/cancellation of BG’s during the period .
Requirements of BG’s
Recommended BG limit
Means of finance
Own funds
Borrowings from
friends and
relatives
Bank finance
others
Total means of Debt /Equity :
finance
3. Details of capital expenditure i.e land and factory building as well as machinery proposed to
purchase:
Personal Guarantee
(Indicate Net worth of
Guarantors with date
of compilation of
opinion reports)
3. Interest CC(HYP):
(Linked to SBAR) TL:
PROPOSAL FOR REVIEW OF WC AND TERM LOAN SANCTIONED UNDER ‘SME SMART
SCORE' SCHEME.
1.Name of the unit
2 Constitution Proprietorship/Partnership/Private limited Company
3.Name of the
Proprietor/partners/
/directors
4. Business Address
Phone/Cell No.
5.Nature of activity
6. a).Date of Last
Sanction/review
b) Sanction is Valid up to
7. IRAC Position as on
8.Present Position of Facility Limit DP O/S Irregularity if
Accounts as on date any
(Rs. In lakhs) CC
TL
LC/BG
Comments on Conduct of above accounts:
9.Financial parameters
(Rs. In lakhs) Year Earlier Actual Estimated
Estimated achieved (Current
(previous (previous year)
year) year)
Net sales
PBT
Cash
Accrual
TNW
TOL/TNW
CR
Comments( to be commented on actuals for deviations
over estimates, if any)
2. Recommended for release of additional working capital limit of Rs. as per the original sanction
on (give date) for the projected year-----
On the above terms and conditions as already set out in the original sanction dated—
Appraised by Approved by
Signature
Name
Designation
Date
Name of the Borrower:
Appraised by Approved by
Name
Date
SME CREDIT PLUS
Existing SSI borrowers with excellent track record and
1. Target Group :
have been standard assets for the past two consecutive
years and also new borrowers.
8. Security: :
Nil
- Primary
Existing collateral to be extended to cover this limit and
- Collateral additional collateral to be obtained only if considered
necessary by the sanctioning authority
SME Credit Plus is a product designed to meet sudden and unforeseen expenditure of SSI units
with excellent track record. Eligible units can be sanctioned an additional working capital limit of
upto 20% of the aggregate fund based working capital limit by way of clean cash credit.
Additionally, the product can be extended to new borrowers as a marketing tool to attract good
borrowal units of other banks to our books.
Marketing Tips:
• This product can be effectively used to attract borrowers of other banks with a good
track record and potential for growth to our books.
• Borrowers of other Banks, especially those whose genuine needs are not being
adequately met by their banks are the most likely target group for marketing of this
product.
• The local District Industries Centre, Industry associations, trade bodies are some of
the sources for providing information regarding "good units in the area".
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STANDBY LINE OF CREDIT
FOR WORKING CAPITAL REQUIREMENTS
1. Target Group : Existing SSI & C&I units and exporting units.
2 Eligibility : Rated SB3 or its equivalent under the new CRA and
above. Selectively for SB4 (or its equivalent under new
CRA)rated units
3 Purpose : To meet genuine contingency needs arising out of
bunching of orders, delay in shipment / realisation of
receivables, sudden increase in raw material costs, mis -
match in cash flows.
4 Type of facilities : Working capital limit by way of cash credit, EPC, bills
discounting, against stocks, receivables, etc., as
required.
7 Rate of Interest : One per cent higher than that applicable to the Cash
Credit limit. Discretion to waive the additional cost rests
with the controller.
8 Security: :
- Primary Drawing power should be available to cover the
SLC(WC) limit
9
Processing fees NIL
Products Highlights:
This product has been introduced at the instance of RBI for enabling the exporters to avail
additional WC funds at short notice in times of urgent need. The maximum amount which can be
given is 15% of FB limits and NFB limits subject to a maximum of Rs.5crs While a similar product
namely, SME Credit plus is available for a contingent limit of Rs.25lacs only, this Stand by Line of
Credit can be given upto Rs.5crores.
Marketing tips:
Ä This product can be shown as an additional feature while marketing for SSI / C&I /
export business.
Ä Our existing units can be given this facility at the time of renewal itself, so that at the time
of need the unit can avail without loss of time.
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GENERAL PURPOSE TERM LOAN FOR SSI SECTOR
1. Target Group : Existing SSI borrowers with CRA rating of SB3 and
above
2 Eligibility : Ä Should have earned profits in each of the
preceding 3 years
Ä The unit should not have a history of default
Ä The unit should be CRA rated unit with a minimum
limit of Rs.25 lacs (as far as possible).
Ä
3 Purpose : Any general commercial purpose such as shoring up
NWC, substitution of high cost debt, R&D, quality
upgradation for ISO certification, etc.
8 Security: :
- Primary Extension of Hypothecation charge over current and
fixed assets
- Collateral
Ä Extension of charge over existing collateral
Ä Obtention of additional collateral by way of
tangible security to be explored
Ä Personal guarantees of proprietor/ partners /
promoters to be invariably obtained
This product is similar to the Corporate Loan which has recently been extended for non- corporate
borrowers. Our existing SB3 rated units which require funds for any purpose connected with the
running of the unit can be offered this product provided the unit has been making profits for the last
3 years and is brought under CRA rating exercise. The maximum amount of loan which can be
sanctioned is Rs.50lacs.repayable in 3 to 5 years.
Marketing Tips:
The existing SB3 rated SSI customers are the target group. Generally, the SSI units tend to borrow
from private financiers to tide over their immediate liquidity problems as availing this amount from
the Bank ,even if eligible, would be time consuming. Hence, it would be in the interest of the Bank
to advise such borrowers to replace their high cost debt from other sources with this loan at
considerably lower cost to ensure continued profits for the unit
FAQs
Ä Can both Corporate Loan and this loan be given to the same unit?
No. Depending on which product is more suitable, any one of these loans can
be given.
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OPEN TERM LOAN
Manufacturing Sector
1. Target Group : SMEs in Manufacturing sector
This is a unique facility, the first of its kind aimed at our existing units, both our customers,
especially those who are rated high as well as those banking elsewhere to facilitate them to
negotiate for acquisition of assets, etc. with the comfort of a pre-sanctioned term loan limit.
There is no need for routine references to the Consultancy cells for TEV study for this
product.
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OPEN TERM LOAN
For Services Sector
This is a unique facility, the first of its kind aimed at our existing units, both our customers,
especially those who are rated high as well as those banking elsewhere to facilitate them to
negotiate for acquisition of assets, etc. with the comfort of a pre-sanctioned term loan limit.
There is no need for routine references to the Consultancy cells for TEV study for this
product.
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RICE MILLS PLUS
25. Target Group : Rice Mills with proven track record as well as new units
set up by our existing borrowers
26. Eligibility : a) Profit making existing units with CRA rating of
SB4 and above as per the simplified CRA system
for Rice Mills
b) Take-over of units conforming to takeover norms
is also permitted
c) In the case of new units set up by our existing
borrowers, the regular CRA model for SSI / C&I
units has to used and should be at least SB3
rated to be eligible for finance under Rice Mills
Plus. Also, 50% of the partners should be our
existing borrowers and management control
should vest with them.
28. Type of facilities : Term Loan, Cash Credit, outward bill limit, LCs , BGs,
SME Credit Plus
30. Margin :
Term Loan – 15-25%
Working Capital –
Stocks :-
Paddy &Rice - 15%-20%
Brokens - 20%
Bran - 30%
Gunny bags - 40%
Book debts-
40%(cover period – max. 60 days)
Margin for book debts can be lowered upto 25% where
adequate collateral is available.
31. Rate of Interest : CRA Rating ( NEW) Interest rates
So far, Rice Mills have been extended credit only on very stringent terms and even SB1 &
SB2 rated companies could not be financed adequately due to the stiff terms of
assessment. Keeping this constraint in view, this product has been introduced in the SSI
segment with a simplified credit rating model which includes weightage for achievement for
projected sales and loyalty to the Bank factor. A specially designed appraisal format has
been designed for the product. This product can be extended at all branches handling
CAAs and also those identified for the purpose by the Circle Management Committee. As
regards assessment, for limits upto Rs.5 crores, Nayak Committee norms for working
capital have to be adopted.
New units can also be financed and the regular CRA model applicable to SSI/C&I units has
to used for arriving at the CRA rating.
Marketing Tips:
• Simplified assessment method for arriving at WC & TL components.
• SME Credit Plus can be granted which is repayable in 6 months.
• Non fund based facilities can be extended especially for exporters.
• Outward Bill limit upto 60 days cover can be considered in specific cases.
• A traditional banking product with a new look and very attractive terms of finance.
FAQS
Ä Can the loans under this scheme be handled at rural branches?
Yes, provided the Circle Management Committee authorizes
the branch for handling this business.
Ä What is the rating pattern under the simplified model designed for this product?
The rating model for this product is as under:-
Annexure-II
Commercial Advances IRAC
SSI Segment : Rice Mills Credit Rating
Unit : Date of last renewal
1. Proposal for :
(Please tick)
Renewal of working capital limits at the existing level
Renewal of working capital limits with enhancement
Sanction of working Capital limits – New
Sanctioning Authority (CCC-I / CCC-II MECC / SECC / DGM / AGM / CM / BM)
2. Total indebtedness :
(Rs. Lakhs)
Proposed
Nature of Facility Existing
Fund Based
Cash Credit (MT)
Cash Credit (Hypothecation)
Cash Credit (Outward Bills – Clean)
Medium Term Loan
Total (A)
3. Borrower
a) Name :
b) Factory at :
c) Constitution : Partnership
d) Date of Partnership deed :
e) Name & Worth of Partners :
(If applicant is other than a partnership, please alter the columns suitably)
4. Brief History :
5. Production facilities : As per Annexure – I
Sales
Net Profit
Annex - I
Production facilities :
Owned Leased
Milling Hall :
Open Yard :
Godown :
Owned :
Rented :
Total Storage capacity :
Assessed Quantity of
Rice
Brokens
Bran
Husk
Total
Monthly Turnover (in Rs. Lacs) for the last twelve monthas)
1 2 3 4 5 6 7 8 9 10 11 12
Month
Turnover
V. Utilities :
Required Available
Power
Transco
Generator
Water
Labour
9.
Processing fees As per SSI norms
10. :
Repayment TL to be repaid in 5 to 7 years excluding a maximum
moratorium period of 12 months
This is a product to help in proper assessment of the credit needs of the Dal mills which although
a traditional activity has assumed a more complex format in view of the liberalization of import and
modernization of the processing of various kinds of pulses. The simplified CRA model will help in
taking into account the market practices and is customer friendly which will help in not only
retaining our existing customers and meeting their credit and other banking needs more
comprehensively but also in attracting new connections to our books subject to fulfillment of take
over norms.
Marketing Tips:
¾ Contact local Dal Mill Owners Association to obtain a list of all dal mills in the area
¾ Arrange a meeting of all dal mill owners to explain this exclusive product designed for them by
the Bank.
FAQs
¾ Can combined dal and flour mills be financed under this product?
Yes provided the books are maintained to reflect the dals and the flour items
Separately
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1. Proposal for :
(Please tick)
Renewal of working capital limits at the existing level
Renewal of working capital limits with enhancement
Sanction of working Capital limits – New
Sanctioning Authority (CCC-I / CCC-II MECC / SECC / DGM / AGM / CM / BM)
2. Total indebtedness :
(Rs. Lakhs)
Proposed
Nature of Facility Existing
Fund Based
Cash Credit (MT)
Cash Credit (Hypothecation)
Cash Credit (Outward Bills – Clean)
Medium Term Loan
Total (A)
3. Borrower
a) Name :
b) Factory at :
c) Constitution : Partnership
d) Date of Partnership deed :
e) Name & Worth of Partners :
(If applicant is other than a partnership, please alter the columns suitably)
4. Brief History :
5. Production facilities : As per Annexure – I
Sales
Net Profit
Annex - I
Production facilities :
Owned Leased
Milling Hall :
Open Yard :
Godown :
Owned :
Rented :
Total Storage capacity :
Assessed Quantity of
Rice
Brokens
Bran
Husk
Total
Monthly Turnover (in Rs. Lacs) for the last twelve monthas)
1 2 3 4 5 6 7 8 9 10 11 12
Month
Turnover
V. Utilities :
Required Available
Power
Transco
Generator
Water
Labour
4 Type of facilities : Cash Credit ( Hypothecation of book debts not more than
6 months old)
6 Margin : 40%
Commission agents have established themselves as a strong link between the farmers and the
markets for their produce. These commission agents provide finance for the farmers for their
cultivation needs and act as agents to sell their crop at harvest time. They charge commission of 1
to 2% which is recovered from the buyer of the produce. These agents are registered with market
committees. The records of produce brought by the farmer and auctioned in the market yard are
maintained by the marketing board. Our product "Arthias Plus" provides finance to these
commission agents otherwise known as "arthias" against their receivables of not more than 6
months old, from farmers only. The credit is extended by way of cash credit (hypothecation of book
debts and assets) upto a maximum amount of Rs.25 lacs.
This is to be treated as indirect finance to agriculture.
Marketing Tips:
FAQs
No. Only those commission agents who are registered with the market committees are
eligible for finance under this scheme.
Ä What about those States where this system of registration is not in vogue?
In such cases, this scheme is not applicable. Instead, any other scheme such
as advance against mortgage of immovable property can be considered on
merits.
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WORKING CAPITAL FINANCE TO T&S SECTOR
4 Type of facilities : Cash credit limit with a sub-limit for LCs if required
6 Margin : 25%
8 Security: :
- Primary Hypothecation of stocks and receivables
- Collateral
Collateral security of at least 50% is to be prescribed out
of which at least 33% of the limit should be by way of
mortgage of immovable property. The stipulation
regarding immovable property can be reduced to 25% in
exceptional cases with the administrative approval of
CCC-II.
10 Repayment On demand
12 Special features : In case the proposal does not fit into the turnover based
model of credit assessment, the traditional method of
projected balance sheet method may be adopted.
Product highlights:
As a measure to improve credit flow to the Trade & Services sector, a financial model based on the
annual turnover rather than on inventory build up has been designed . As per this model , a credit
limit equal to 15 % of the projected annual turnover can be fixed subject to the projection being not
more than 25% increase in the actual turnover of the immediately preceding year. A margin of 25
% has to be maintained and the drawing power has to be regulated based on the stock
statements.
Marketing tips:
FAQs
Ä Can the borrower be granted higher limits than what is arrived at under the Turnover
method?
Ä Yes. In such cases the assessment has to be made under the Projected Balance Sheet
method.
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FLEXI LOAN FOR TRADE AND SERVICES
5 Quantum of Finance : Rs.5 lacs to Rs.100 lacs. In the case of extending this
term loan for working capital purposes, a limit of upto
15% of the assessed WC limits can be considered for
meeting contingencies , subject to availability of drawing
power. Minimum DSCR to be 1.50.CRA –Trade model to
be used for limits above Rs.25 lacs.
6 Margin : Minimum 25% of the expenditure
Rate of Interest : Linked to CRA rating for limits above Rs. 25 lacs. For
others, SBF rates are applicable.
Product Highlights:
This is a term loan facility repayable in 3 to 5 years extendable upto 8 years, designed
taking into account the special requirements of the trade and services sector. The eligible
activities for this product are:
1) Wholesale and retail traders & distributors of agricultural & industrial
commodities
2) Departmental stores and supermarkets
3) Export/ import intermediaries
4) Large transport operators of passenger buses and goods.
5) Construction, transport, supply, public utility / maintenance contractors
6) Tourism related facilities – Hotel / travel agencies
7) Hospitals, nursing homes, clinical labs etc.
Borrowers with CRA rating of SB4 or SBTL4 under CRA-Trade model are eligible for this
product. Gross DSCR should be minimum 1.50 and TOL/TNW not beyond 4and total long
terms liabilities to equity should not be more than 2:1 and current ratio should be at least 1.
The maximum amount of TL which can be granted under this scheme is Rs.100 lacs.
Marketing Tips:
¾ Almost anyone involved in trade or service can be offered this facility which can
be used for any general purpose connected with their line of activity.
¾ All small and medium sizes enterprise in the area of operation can be
targeted for this product.
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SBI SHOPPE
1. Target Group : Present and prospective owners of shops/ offices/ show-
rooms/ training centres/ service centres/ garages/ offices
for Chartered Accountants / Consultants
8. Security: :
- Primary Hyp. / pledge / mortgage / assignment of the assets
purchased out of Bank's finance
- Collateral
9. Processing fees As applicable to SSI / SBF units
10. Repayment : 3 to 7 years excluding a maximum moratorium period of
6 months
This is a unique product aimed at the trade sector for purchase /modernisation/ expansion /
upgradation of shops dealer/show rooms, franchisees, repair centres / Garages / buildings for
professionals etc. upto Rs.20 lacs by way of a term loan repayable on easy terms.
Marketing Tips:
• Shopping complexes / malls are ready source of business for this product.
• Traditional shopping / business areas in towns and cities can be a source for
marketing this product for renovation and facelifting.
• Takeover of similar loans extended by other banks can be considered subject to
fulfilment of take over terms.
FAQs
Ä Can this loan be given if the shop premises is owned by a close relative of the owner of
the shop who has applied for the loan?
Yes. Often the premises is in the name of the father or the wife of the applicant. The loan
can be given in such circumstances also subject to obtention of usual no objection/ no
lien letter from the owner of the property.
Yes. This facility can be extended to those engaged in services such as travel agencies,
caterers, hotels, eateries, beauty salons, etc.
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SBI SHOPPE PLUS
13. Target Group : Present and prospective owners of shops/ offices/ show-
rooms/ training centres/ service centres/ garages/ offices
for Chartered Accountants / Consultants
17. Quantum of Finance : 1st term loan as per housing loan scheme and second
term loan for 75% of cost of setting up office / shop
21. Processing fees As per housing loan for 1st term loan
As applicable to SSI / SBF units for 2nd term loan
This is a unique product aimed at the services sector for purchase of office – cum - residence for
professionals etc. Credit can extended by way of a term loans repayable on easy terms.
Marketing Tips:
¾ The local chapter of the Institute of Chartered Accountants of India would provide
a list of chartered accountants who are in practice. They could be contacted
individually or by holding a seminar or meeting for them to explain the features of
this unique scheme which also has substantial tax benefits.
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EXPRESS VENDOR DISCOUNT SCHEME
4 Type of facilities : EVDS limit for 1 year renewable on case to case basis
5 Quantum of Finance : The aggregate of the EVDS limits for an IM will be given
by the COCC I. The individual limits for the vendors will
be given by CAG
The period of credit will be stipulated by the COCC I .
8 Security: :
- Primary Generally unsecured.
- Collateral
9 Processing fees As applicable to C&I
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PRE –SHIPMENT EXPRESS VENDOR SCHEME
5 Quantum of Finance : The aggregate of the EVDS limits for an IM will be given
by the COCC I. The individual limits for the vendors will
be given by CAG
The period of credit will be stipulated by the COCC I .
8 Security: :
- Primary Generally unsecured.
- Collateral
9 Processing fees As applicable to C&I
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TRADERS EASY LOAN (TEL)
1. Target Group : 7. Wholesale and retail traders in agricultural or
industrial commodities
8. Professionals and self – employed
9. Small business enterprises
10. Commission agents engaged in purchase and sale
of food grains and other commodities
11. Cotton ginning mills that purchase cotton and sell it
after ginning.
12. Oil Mills
13. Rice Mills (Rs.5 lacs to Rs.500lacs)
Cold storage units upto Rs.1 crore.
2 Eligibility : Existing customers with a satisfactory track record.
New connections including take - over can be considered
subject to take- over norms.
3 Purpose : The loan can be considered for acquiring fixed assets fro
the business and/or build up of inventory /current assets.
4 Type of facilities : Cash Credit / Demand Loan/ Term Loan
Working capital finance can be availed either as CC or DL
or partly CC and partly DL
5 Quantum of Finance : Rs.0.25 lac to Rs.500 lacs.
For traders and wholesalers, for professionals and self
employed
The credit needs will be assessed for the purpose stated
and the loan component shall not exceed 20% of the
projected annual turnover or 75% of the capital costs to be
incurred for business or 65% of realizable value of property
whichever is less.
In the case of rice mills, the quantum of finance can be
assessed based on pucca records of the unit and can be
fixed anything between 20% to 40% of the projected annual
turnover.
For existing borrowers who have been sanctioned other
limits the Loan can be sanctioned subject to :-
i) the existing loan accounts have conducted
satisfactorily for the last three years;
ii) the eligible amount ie., the outstandings in the
existing accounts and the proposed loan should
be within 65% of realizable value of the property
mortgaged to the Bank without resorting to
revaluation of the property.
4. Date of Commencement
of business
• Opinion Report on the Bank’s prescribed format should be prepared by branch officials.
• In case no credit facility enjoyed and only a current account is maintained please advise specifically.
Fund Based :
Term Loan :
Non-fund based
Letter of Credit :
Bank Guarantee :
Collateral :
Market Value
Description of Name of the owner*
Property
• If owner is other than the proprietor / partner of the firm (i.e. guarantor), details of the guarantor viz. Name,
Age, Residential Address and Phone No. etc. should be given :
and that they shall form the basis of any kind of facility State Bank of India may decide to give
under the SBI Trader’s Easy Loan Scheme. I / We confirm that I/We are not defaulters of any
Bank. I / We also confirm that I / We have / had no insolvency proceedings against me/us nor
have I / we ever been adjudicated insolvent. I / We undertake to abide by the Rules and
Regulations of State Bank of India in respect of SBI Trader’s Easy Loan Scheme.
Signature of Borrower
Date :
Place :
Particulars Details
Target Group Owners of
Restaurants
Fast food chains
Eligibility Individuals (proprietorships)
Partnership firms
Corporates
Trusts (with borrowing powers)
Purpose For purchase of Kitchen equipments
For investment in Interior decoration
For purchase of furniture and fixtures
For purchase of land and construction of buildings
Nature of facility Term loan or overdraft.
Tenure of Loan Repayment period of up to 7 years when land and building cost
included in loan, otherwise 5 years.
Quantum of Investment in the Restaurant for the aforementioned purposes less
finance margin / promoters contribution which ever is lower.
Security
Primary Hypothecation / Pledge of the assets financed by the Bank
Collateral Extension of charge over current assets, Fixed assets and other
existing collateral if any
Obtaining additional tangible security such as immovable property,
bank deposits, etc. is to be explored wherever possible
In all cases personal guarantees of proprietors/partners/promoters
to be invariably obtained
In cases of corporate restaurants, pledge of promoter’s equity
should be examined
Margin 25%
Insurance All the assets financed by the Bank and the collateral security is to be fully
insured as per extant instructions.
Rate of interest The interest rates on the scheme, for new restaurants and takeovers from
other Banks and financial institutions will be applicable as per the table
below, related to the score obtained by an application in the rating through
the credit evaluation matrix.
New cases
Score Rate of interest
> 75 SBAR (10.25%)
Between 65 and 75 SBAR + 1% (11.25%)
Between 50 and 65 SBAR + 2% (12.25%)
< 50 Not eligible
Takeover cases
Score Rate of interest
> 75 SBAR (10.25%)
Between 60 and 75 SBAR + 1% (11.25%)
< 60 Not eligible
Current SBAR – 10.25%
Inspection Monthly by the Field Officer and quarterly by the Divisional Manager
/Branch Manager as per extant instructions for trade advances.
Discretionary In cases of loan of more than Rs.25 lacs for a new restaurant, the
powers authority one level higher than the sanctioning authority will have the
power to reduce the interest rate by up to a maximum of 1.00% based
on competition.
Similarly, in takeover cases, of loans more than Rs.25 lacs the
authority one level higher than the sanctioning authority will have the
power to reduce the interest rate by up to a maximum of 1.00% based
on competition.
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A B C
Location
• Easily accessible / located on ground floor along main road 5
• Accessibility*
• Requires effort to access (far from population, inside a 2
Novelty
* Restaurants with novelty value/brand and easy accessibility can attract customer from all across the city. Me too
restaurants will mainly attract customers from nearby localities and location on main road is a great advantage
Owner
Collateral
Repayment
capability • >= 2 20
• Debt service • >= 1.5 10
coverage • < 1.5 0
Brand
• Accessibility 5 2 0
Location (10%)
• Competitive intensity 5 2 0
Profitability of • Profitability 10 5 0
operations (10%)
Location
• Easily accessible / located on ground floor along main road 5
• Accessibility*
* Restaurants with novelty value/brand and easy accessibility can attract customer from all across the city. Me too
restaurants will mainly attract customers from nearby localities and location on main road is a great
advantage
** If restaurant has been in existence for < 1 year projections based on available sales figures may be used to
assess profitability 6
DETAILED CRITERIA FOR PARAMETERS IN EVALUATION GRID – TAKEOVER CASES
(2/3)
Owner
Collateral
Repayment
capability • >= 2 10
• Debt service • >= 1.5 5
Track record of
repayment
• Term loan repayment • Satisfactory track record of repayment of term loans 30
history obligation
• Default on repayment of term loan obligation 0
* Minimum collateral is
10% below which
proposal will be rejected
Application cum Interview form
State Bank of
India
Branch
Application cum interview form for trade and services
(Restaurants)
4 Trade / Services in
5 Year of commencement of business
6 Experience in the line of activity
7 Constitution
8 Details of reconstitution in the past three
For term loans – Details of assets to be acquired (pl. enclose detailed list if
Description Details of the Cost Time schedule for
supplier completion
Date
BUSINESS INFORMATION
2. Details of suppliers/
principals
3. Seasonality of activity
(specific peak & off-peak
periods)
5. Terms of Purchase/procurement
% of Credit purchases to total
purchases %
Period of credit enjoyed Months
Average level of sundry Rs.
creditors
Estimated value of remittances to suppliers by DD/TT pa:
6. Requirement of stocking
Average stock holding Rs.
Availability of storage Rented/owned
facilities/address thereof
Level of competition
i. Whether a specialty Restaurant or General one Any other
special features like volume sales/catering etc.
ii. How many similar Restaurants are located in the area, say within 500 mts.
iii. How many restaurants are running successfully in the neighborhood
7. Marketing arrangements
Major Buyers/consumers with long term arrangement for supply to
offices. Catering arrangements.
I/We declare that the information given in the applicationform are true,
correct and complete and that they shall form the basis of any
kind of facility State Bank of India may decide to extend to me/us. I/We
shall furnish all other information that may be required by Bank in connection
with my application. The i nformation may also be exchanged by you with
any agency you may deem fit. You may take appropriate safe guards/action for
recovery of bank dues including publication of defaulters names in
website/submission to RBI.
I/We confirm that I/We have no borrowing arrangements for the unit with any
bank except those indicated in the application. I/We confirm that I/We are not
defaulters of any Bank/any financial Institution. I/We also confirm that there
are no overdues/statutory dues owed by me/us and that I/We have/had no
insolvency proceedings against me/us nor have I/We ever been adjudicated
insolvent. I/We undertake to abide by the Rules and Regulations of State Bank
of India in respect of the facilities being extended to me/us.
Signature of Borrower
Date :
Place
: List of documents to be attached
l
Appraisal form
a. SECURITY:
Facility Primary Collateral Guarantee
WDV Name
MV NW
Valuation dated As on
Description of collateral security :
Deviation from existing security (if any)
b. MARGINS : (FOR EACH FACILITY AS APPLICABLE)
Signature
Name
Designatio
n Date:
Branch
ANALYSIS OF BALANCE SHEETS
(Rs. in 000’s)
Liabilities 20 / 20 / 20 /
Term Loans
Others
Total Deferred
Liabilities (B)
Total liabilities
(A+B+C)
Assets 20 / 20 / 20 /
Cash
Investments
Stock
Sundry Debtors
Others
Total Current
Assets (D)
Miscellaneous
assets (F)
Intangibles (G)
Total
miscellaneous
assets H =
Total assets
(D+E+H)
Capital Base:
Profitability:
Total
(These details should be furnished separately for each partner – if a partner has no
assets, indicate accordingly)
General Remarks :
(Please comment on (a) business ability, (b) credit enjoyed in the market and (c)
reputation for honesty, integrity, etc.)
5 Quantum of Finance : 10% of the fund based limit not exceeding Rs.25lacs
8 Security: :
- Primary Hypothecation of the vehicle by noting charge with the
RTO
- Collateral
9 Processing fees NIL
10 Repayment In monthly / quarterly instalments not exceeding
60 months
Very often the corporates which are financed by us for their working capital needs resort
to finance from NBFCs or other banks for purchase of vehicles for their CEOs or other
senior functionaries. This product is specially designed for extending credit by way of
term loan upto Rs.25lacs for SB3 and above rated companies enjoying credit facilities of
at least Rs.1crore with us.
Marketing tips:
Ä At the time of renewal of existing working capital limits of eligible units, this
product can be offered as an add-on.
Ä The repayment period is 60 months
Ä The rate of interest is far lower than that charged by car financiers, etc.
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AUTOCLEAN
6. Margin : NIL
7. Rate of Interest : 1.50% below SBAR
8. Security: :
- Primary Hypothecation of vehicle OR group guarantee
- Collateral
NIL
9 Processing fees Waived
10 Repayment 24 months
36 months if vehicle is already financed by us
11 Documentation : Ä Hypothecation Agreement As per simplified SME
Documentation
Ä Irrevocable letter of authority from the borrower
Ä Form 29 &30 (Blank Transfer form)
Ä Form 34 for creation of charge by RTO using
hologram
13 Special features : Ä Obtain the following –
Ä Driving license
Ä Permit
Ä Badge copy
Ä Fitness Certificate issued by RTO
Ä Meter Certificate
Ä Work Order from RTO-BTI form
Ä RTO endorsement on the RC book after fitting the
kit
Ä Fitting of the kit should be at an RTO approved
centre.
Product Highlights:
Marketing Tips:
Our existing borrowers of auto richshaws can be targeted for this product on a longer
repayment period of say 36 months .
FAQs
The applicant must produce a work order from the RTO before we consider
this case. Normally the work order is issued only if refilling and other facilities
are available.
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CAR LOANS TO SME UNITS
4 Eligibility :
Case I - When the loan is availed of in the name of an
individual: Income: An individual must have a net annual
income of Rs.100,000/- and above for the last year as
per income tax return.
Case II - When the loan is availed in the name of unit:
Since the promoter/partner/ senior executive will be the
joint applicant in this case and liable to repay the loan so
he/she should meet the following criterion:
Income: The joint applicant must have a net annual
income of Rs.100,000/- and above for the last year as
per income tax return.
Definition of “Senior Executive”:
Employees in Top Management, Directors or employees
holding the position of responsibility in an Organisation
or in other words executives falling one level below the
promoter / partner in hierarchy
5 Authorised : All branches catering to SME clients can extend the
Branches schemes to SME clients.
8 Loan Amount : The maximum loan amount would be 2.5 times the net
annual income (i.e., income as per latest income tax
return flied less taxes payable).
Regular income from all sources can be 'considered
provided the sanctioning authority is satisfied with the
proof of income.
9 Margin : 15%
I. NEW VEHICLES:
Tenure Rates of Interest wef
20.02.2007
11 Penal Interest : Since the applicants under this facility will be our SME
borrowers it should be possible to monitor closely and
prevent the accounts from becoming irregular. However
should some accounts become irregular due care should
be taken to make then regular within 60 days. .
7. Special Remarks : ¾ All the other features for car loan for used
vehicles are same as the car loan for new vehicles.
¾ OD facility is NOT available for SME Car Loan
( both new and used vehicles)
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**************
PARYATAN PLUS
19. Rate of Interest : As per C&I / SBF rates as the case maybe
20. Security: :
- Primary Hypothecation of assets financed by the Bank
Tangible Collateral of immovable property or
- Collateral
TDRs,NSCs, KVPs,, etc for at least 50% of the loan
amount
Product Highlights:
A comprehensive product aimed at the Tourism industry for providing finance for
various activities such as hospitality industry, transportation and tour operators
have been brought under the ambit of "Paryatan Plus".
No cap is stipulated for this product. Credit facility can be granted by way of TL /
CC / LCs / BGs for the purpose of construction of hotels / rest houses / Yatri
Niwas, Luxury buses / Boats / Amusement Parks, Health Spas, Travel agents
etc.
Marketing Tips:
• Tour operators, travel agencies are ready market for this business.
• Hotels, restaurant owners at tourist sites can be targeted for this product.
• Established and reputed travel agents such as Thomas Cook, Sita travels,
SOTC etc., can be contacted.
• Takeover of existing loans from Banks / FIs is a ready source of business.
TLs extended by Tourism Development Corporation at high rates of
interest can be taken over subject to take over norms being fulfilled.
FAQs
Ä How can we decide whether the term loan for purchase of vehicles by a large
travel agency should be considered under Transport Plus or Paryatan plus ?
Transport plus has an upper ceiling of Rs.7.50 crs.but this product has no
ceiling.
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Enclosure to Circular No. CIRCO/ADV/221/2004-05 dated 14.12.2004
1. Personal Data :
1.3. Constitution :
1.4. Experience
Name(s) of proprietor / partners / Age Previous
Office-bearers of co-operative society : experience
2.4. Cost: :
(Proforma invoice to be enclosed. In the case of
secondhand vehicles, valuation certificates from
two reputed dealers, workshops to be enclosed)
i) Chassis : Rs.
ii) Body Building : Rs.
iii) Others ( ) : Rs.
------------------------------
Total : Rs.
------------------------------
Applicant's contribution ( % ) : Rs.
------------------------------
Loan required : Rs.
-----------------------------
-2-
2.5. If a working capital loan is required, details
relating to purpose (enclosing estimates /
invoices, where applicable) amount involved,
etc.) :
3. Operational viability
4. Repayment :
5. Security :
Date
9. Section:
Date Sanctioning Authority.
TRANSPORT OPERATORS
OPERATIONAL VIABILITY:
…2..
..2..
3. Surplus: B - C : Rs.
Income tax,if any : Rs.
Net surplus : Rs.
Depreciation added back : Rs.
8. Security: :
- Primary Hypothecation of vehicles financed, spares and
receivables
- Collateral
Other unencumbered vehicles / immovable property for a
value of not less than 25% of loan amount
9. Processing fees 1%
Product Highlights:
So far, NBFCs have been the major source of finance for fleet owners especially of
surface transport. This product has been designed to take care of the credit needs of
the transport vehicle owners of 10 or more vehicles used for transportation of goods and
passengers and holding valid permits for plying the vehicles either within the state or
inter- state or national permit. The product comprises of a TL portion for financing of
80% of the cost of the vehicle and a cash credit portion to take care of the working
capital needs of the operation to the extent of 80% of the receivables not more than
4months old.
Marketing Tips:
BRANCH:
b) Business details:
c) Collateral Security:
The proposal will be considered acceptable only if the answers are “yes” for all the
above 21 parameters under the eligibility column of sl. no. 1(a), (b) and (c).
(Rs. In crores)
2. Performance & Financial indicators:
3. Term Loan :
Commercial viability:
Sales/Income
Net Profit
Cash Accruals
Interest
TOTAL
TL repayments
Interest
TOTAL
Gross DSCR
Average Gross DSCR
Net DSCR
Comments on DSCR (in brief)
Estimated Projected
Receivable/Payments Actuals
Receivables
S. Creditors
Estimated
Assessed Bank Finance Actuals Projected
Year
TCA
OCL
WC Gap
NWC
BANK FINANCE (BF)
Signature :
Designation :
Appraised by Assessed by
ANNEXURE-3
BRANCH:
-----------------------------------------------------------------------------------------------------------
PLEASE FILL UP THIS FORM ONLY IF THE ANSWERS TO ALL THE FOLOWING
QUESTIONS ARE 'YES'
-----------------------------------------------------------------------------------------------------------
1. Whether the promoters have satisfactory record of dealing with Banks and have
never defaulted to any Bank/FI/s?
2. Whether the fleet possesses more than 10 well-maintained vehicles, including
the proposed vehicle/s?
3. Whether the registered/administrative office is situated at metro/urban/semi
urban centre?
4. Whether the unit is earning profit?
-----------------------------------------------------------------------------------------------------------------
PLEASE USE SEPARATE SHEET, WHEREVER SPACE IS NOT SUFFICIENT
-----------------------------------------------------------------------------------------------------------------
1. a) Name:
b) Son/wife of:
c) Date of Birth:
2. Residential address:
Tel.Nos:
Fax No:
e-mail:
4. Academic Qualification:
Is it related to your line of trade?
8. Details of assets:
Land/Building:
(location, value etc.)
9. Details of liabilities:
B. GENERAL
2. Address:
Regd. office:
Telephone No:
Admn. office:
Telephone No:
Branch office/s:
Telephone No:
3. Constitution:
6. Mode of repayment:
C. BUSINESS DETAILS
Bank/Branch:
ii) Can all sale proceeds be routed through your account with us?
If not, give reasons:
Can you give an ageing of your receivables? (as on last 31st March)
9. What will be your liability towards payment of installments and interest on term
loan in a year?
10. Whether the cash accruals will be sufficient to take care of the repayment
liability?
11. Brief background of the firm/company:
17. Anything else you would like to tell about your business.
18. What is the collateral you would be able to offer? Give details.
A. UNENCUMBERED VEHICLES:
Total
B. OTHERS, IF ANY:
DESCRIPTION PRESENT VALUE (Rs) BASIS
Total
GRAND TOTAL (A + B):
What is the level of income/sales you are projecting for next 5 years? Briefly describe
the basis.
What is the level of receivables you are expecting for next 5 years in terms of
month's income/sales?
b) Can the vehicles be available to the Bank for inspection purpose every
month? If yes, how?
I/we certify that all information furnished by me/us is true, correct and complete.
I/we have no borrowing arrangement for the company/firm with any bank
except as indicated in the application form. There are no overdues/statutory
dues owned by me/us or the firm/company. No legal action has been taken
against me/us/firm/company. I/we shall furnish all other information that may
be required by Bank in connection with my/our application. This information
may also be exchanged by you with any other agency, you may deem fit. You,
your representatives or any other agencies as authorized by you, may at any
time inspect/verify my/our assets, books of account, etc. in our office/business
premises as mentioned above. You may take appropriate safeguards/action
for recovery of bank's dues including publication of defaulters' name in web
site/submission to RBI. I/We further agree that my/our loan shall be governed by
the rules of State Bank of India as may be in force from time to time.
Place:___________
ENCLOSURES:
Model/Year:
Make:
Name of financer:
Amount:
Present outstandings
5. Quotations :
ii) Date of PDCs: The cheques should preferably be dated prior to the 7th of every
month.
iii) Custody: PDCs should not be retained alongwith the security documents to
avoid unnecessary handling of documents. These should be retained by the
Asst./Deputy Manager (Advances) in joint custody with Manager of the Division
or Accountant or Cash Officer and placed in a fireproof safe/locker.
iv) Handling of cheques returned unpaid: Should any cheque be returned unpaid for
want of sufficient funds, the borrower should be immediately contacted. The
cheque should be represented within a period of three days of its having been
returned unpaid on a written request of the borrower. In the event of the
borrower failing to deposit the amount of the cheque, the undernoted procedure
for initiating legal action under Section 138 of the Negotiable Instruments Act,
1881, should be initiated:
Step 1
When a cheque is dishonoured the branch has to give a notice in writing to the
drawer within 15 days. Enter in a separate register for this purpose and monitor.
Step 2
If drawer fails to make the payment of the said amount of money to the Bank
within 15 days of the receipt of the notice mentioned in Step-1, proceed to
Step-3.
Step 3
File a complaint before the Metropolitan Magistrate or First Class Magistrate,
within one month from the date of cause of action.
Step 4
During the pendency of the complaint if the drawer desires to compound the
offence, branch can withdraw the complaint on receipt of the amount of the
cheque, interest, legal cost and other expenses.
It may, however, be noted that the initiation of legal action is a measure of last
resort and all efforts should be made to contact the borrower to regularize the
position. However the one month time limit shall not be allowed to be exceeded
under any circumstances, (except under instructions from the Controlling
Office).s
PETRO CREDIT
2 Eligibility : RIL plans to set up 5500 retail outlets for their petroleum
products on “Dealer – owned & Dealer –
operated”(DODO) basis in addition to “Company-owned
&dealer operated”(CODO)outlets . The Bank has entered
into an MOU with RIL for a tie – up arrangement for
financing their retail outlets
Corporate and non – corporates having dealership
appointment letter from RIL are eligible
4 Type of facilities :
Term Loan / Cash Credit
6 Margin : 15 to 25 % for TL
25% for WC
8 Security: :
- Primary i) Mortgage of land
ii) Hypothecation of all assets created out of
Bank finance
- Collateral i) For dealers with a satisfactory track record of
3 years in any business
Product highlights:
RIL standardized project reports for different types of Retail Outlets (RO) depending on
location. The capacity of the different ROs will be 2 and 3 dispensers only. The
maximum projected sales for an RO with 2 dispenser will be 50kl of motor spirit and
300kl of High Speed Diesel per month and 50kl MS and 500kl of HSD per month for an
RO with 3 dispensers. each dispenser will have a storage capacity of 20kl of MS and
40kl of HSD.
The project cost of an RO will be around Rs.60 to 70 lacs excluding cost of land and
working capital requirement of Rs.10 lacs. Security deposit is payable by the RO to RIL
Marketing tips:
RIL is in the process of selecting dealers for retail outlets for selling their petro products.
RIL plans to open 5500 retail outlets in the coming 3 years of which 2000 will be set this
year. A list of such selected dealers will be provided by RIL and these leads will have to
be pursued for booking business under this product.
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STATE BANK OF INDIA
_____________________ BRANCH
APPLICATION CUM INTERVIEW FORM FOR FINANCING OF PETROLEUM RETAIL
OUTLETS UNDER “PETRO CREDIT”
Details of Proprietor/Partners/Directors
Name & Ag PAN Residential Phno/Mobile NetWorth*
Qualifications e Address
For Term loans – Details of assets to be acquired (pl enclose detail lists if necessary
Description Details of the Cost Time schedule for
supplier completion
Terms of Purchase/Procurement
Domestic Imports
% of Credit purchases to total % %
purchases
Period of credit enjoyed Months Months
Average level of Sundry Creditors Rs. Rs.
Purchases under LC included above Rs. Rs.
Estimated value of remittances to suppliers by DD/TT p.a.
Requirement of stocking
Average stock holding Rs.
Availability of Storage facilities Rented/owned
/address thereof
Marketing arrangements
Availability of tie-up arrangements
Major buyers/consumers
Level of competition
Major competitors
Competitive advantage of the unit
Terms of Sales
% of Credit Sales to total sales Domestic
%
Period of credit given Months
Average Receivables level Rs.
Performance Parameters Past/projected
Past three years Projections
31.3.. 31.3… 31.3… 31.3… 31.3…
Sales/Income
Net Profit
Depreciation
Cash Accrual
Tangible Net
Worth
TOL/TNW
For term loans, please enclose projected profitability statements covering the period of
repayment
Details of Security offered
Primary
Collateral
(i) Immovable Property
Description of Name of the Value of the Basis of valuation
Property Owner Property
I/We declare that the information given in the application from are true, correct
and complete and that they shall from the basis of any kind of facility State Bank
of India may decide to extend to me/us. I/we shall furnish all other information
information may also be exchanged by you with any agency you may deem fit.
You may take appropriate safe guards / action for recovery of bank dues including
bank / any financial institution I/We confirm that there are no over dues /statutory
dues owed by me/us and I/WE have/ had no insolvency proceedings against
me/us nor have I/we ever been adjudicated insolvent. I/We undertake to abide by
the Rules and Regulations of State Bank of India in respect of the facilities being
extended to me/us.
Signature of Borrower
Date:
Place: Name of the Interviewing Official
Term Loan:
Details of Fixed Cost price/estimate Own funds Bank Finance
assets (incl.taxes)
Land
Building
Equipment
Others
Total
Comments on Debt/Equity:
b) Assessment of BG limit
Outstanding BGs as on
Add: BGs required during the period
Less: Estimated maturity/cancellation of BGs
during the period
Requirements of BGs
Recommended BG limit
d. RATE OF INTEREST :
facility Pricing
e. REPAYMENT SCHEDULE :
f. INSURANCE
g. SUBMISSION OF STOCK STATEMENTS
h. INSPECTION
j. PROCESSING FEE
j. UPFRONT FEE
k. CONCESSIONS IN SERVICE CHARGES
Signature
Name :
Designation
Date :
State Bank of India,
______________ Branch
ANNEXURE TO APPRAISAL
ANALYSIS OF BALANCE SHEETS
Liabilites 20 / 20 / 20 /
Term Loans
Others
Total Deferred liabilities (B)
Assets 20 / 20 / 20 /
Cash
Investments
Stock
Others
Total Current Assets (D)
Capital Base :
This agreement (the "Agreement") is made at ____________ on this _ day of ____ 200 [ ].
AMONGST :
AND
Reliance Industries Limited, a company incorporated under the provisions of the Companies
Act, 1956 and having its registered office at Maker Chambers acting through its duly authorized
representative _____________ (hereinafter called the "RIL", which expression shall, unless
repugnant to the context thereof, mean and include its successors and permitted assigns), the
party of the SECOND PART;
AND
Whereas RIL is interested in the setting up and running of retail. outlets for the sale of its
products inter alia being Motor Spirit, High Speed Diesel, Lubricants and Auto Liquified
Petroleum Gas (the "Products") at various places in India.
AND Whereas the Borrower has been selected for grant of dealership by RIL vide LOI dated
_____ which has been issued by RIL and duly received and accepted by the Borrower and the
Borrower & RIL has already entered into dealership agreement Dated ................ (the
"Dealership agreement") with the Borrower.
AND Whereas the Borrower owns a piece of land bearing No. ____________ admeasuring
about _________ situated at _______________ (the "said Land") and is bounded as under :
And Whereas towards construction of the Retail Outlet, payment of security deposit in terms of
clause if the "Dealership Agreement and initial operational expenses of the Retail Outlet, the
Borrower requires funds and thus has requested the Bank ot provide the Borrower with credit
facilities.
And Whereas the Borrower has executed lease deed dated _________ for the Retail Outlet i.e.
the said Land and the structure constructed or to be constructed thereon in favour of RIL.
And Whereas the Borrower has requested the Bank to provide it with the credit facility in a sum
of Rs. ___________________ /- (Indian Rupees facility in a sum of Rs. _____________ (INdian
Rupees ________________________only) (hereinafter collectively called the "Credit Facilities")
for the purpose of construction over the said Land, making the security deposit to RIL and
meeting the working capital requirements.
And Whereas relying upon the representations made by RIL and the Borrower in this
Agreement, the Bank has agreed to grant the Credit Facility to the Brorrow on the terms and
conditions in this Agreement.
1. The Bank agreed to grant to the Borrower the Credit Facilities, upon the terms and
subject to the conditions hereof and upon/of the terms and conditions of the loan agreements,
overdraft agreement, mortgage deed, instrument of hypothecation, letter of pledge, demand
promissory notes, promissory notes, receipts acknowledgement of debt and securities,
personal guarantee and other guarantees and security, deeds and documents executed/to be
executed provided/to be provided between/by the Borrower and/to the Bank ("Credit
Facilities Documents"), for an amount of Rs. ____________/- (Rupees
_______________________________________________only) an overdraft facility towards
working capital for a sum of Rs._____________/- (Indian Rupees
__________________________ only).
2. The Borrower hereby agrees and undertakes to execute all the Credit Facilities
Documents in the form and manner as may be required by the Bank from time to time.
3. The entire amount of the Credit Facility provided by the Bank to the Borrower along with
interest, fees, charges and expenses due thereon shall be repayable by the Borrower to
the Bank in accordance with the provisions of the Credit Facility Documents.
4. Not withstanding anything to the contrary contained in this Agreement and/or any other
agreement executed/that may be executed between the Bank and the Borrower, and / or
the Credit Facility Documents, the Credit Facility and all amounts outstanding there
under are/shall always be payable by the borrower to the Bank forthwith on demand
beind made by the Bank, which the Bank shall be entitled to make, without any cause or
reason or default by the Borrower, at its sole and absolute discretion.
5. The Borrower shall execute and/or cause to be executed at its own cost and expense
such agreements, undertakings, instruments and forms as may be required by the Bank
from time to time and in the form, manner and substance satisfactory to the Bank for
creation/perfection of any security/further security by way of mortgage, hypothecation or
otherwise over the assets/properties belonging to the Borrower as the Bank may require,
from time to time including without limitation mortgage over the immovable assets of the
Borrower, hypothecation of the Products and book debts/ receivables in favour of the
Bank.
6. RIL hereby represents, agrees, warrants and undertakes that unless the Bank expressly
otherwise authorize RIL in writing :
i. RIL shall pay all amounts due and payable by RIL to the Borrower on account of
volume incentives (presently @ Rs.250/kl of all products for volumes in excess of
125 kl pm) and all other payments that may be paid/made by RIL to the Borrower
by whatever name called (collectively called the "Dealer Dues"), directly to the
account bearing no. _________________ of the Borrower maintained with the
Bank (the "Dealer Account") or to such person or account as may be directed, in
writing, by the Bank from time to time; Borrower hereby irrevocably agrees for such
payment being made to Dealer account.
ii. RIL shall not terminate the dealership agreement with the Borrower for the Retail
Outlet or cease operations at the Retail Outlet unless written notice of such
intention to terminate the dealership agreement has been given to the Bank
simultaneously when RIL gives notice to the Dealer about termination.
iii. RIL shall not refund any part of the security deposit or any other deposit or amount
of any nature whatsoever to the Borrower except to such account and to such
person (including the Bank) as may be required by the Bank and in the manner
directed by the Bank in writing.
iv. RIL shall, in the event of termination of Dealership with Borrower, pay the amount
of rent for the Retail Outlet @ Rs.100/- per kl of all products or Rs.10,000/- per
month whichever is more into the Dealer Account. The Bank shall be entitle d to
appropriate this amount towards the outstanding amount due in respect of credit
facilities.
v. RIL can modify any material terms and conditions of the Dealership agreement
only with prior consent of the Bank which consent shall not be unreasonably
withheld. If the Bank does not respond to the notice of RIL to the Corporate Centre
of SBI, seeking such consent within 10 days of notice seeking such consent, it will
be deemed that SBI has consented for such modification.
vi. RIL shall not handover possession of the Retail Outlet to the Borrower (other than
as a dealer) except with the written permission of the Bank.
7. In the event the Bank intimates to RIL that the Borrower has committed any default
under the Credit Facility Documents and / or in repayment of any amount due and / or
payable under the Credit Facility, and the said dealership agreement has not been
terminated, RIL shall:
i. continue to supply the Products to the Borrower at RIL's normal sale price.
ii. raise Debit Notes on the Borrower with each sales quantity @ Rs. 150 per kl of all
products for which the Borrower hereby expressly authorizes the RIL.
iii. pay the amount collected from the Borrower towards Debit Notes to the Bank or
such person or such account (including Dealer Account) as the Bank may direct, in
writing, and the Bank shall be entitled to adjust the same towards the amount
outstanding under the Credit Facilities.
8. In the event the Bank intimates to RIL that the Borrower has committed a default under
the Credit Facilities Documents and / or in repayment of any amount due and / or
apyable under the Credit Facility and such default has not been rectified for a period of 3
(three) months and the Bank requests RIL to terminate the dealership agreement, RIL,
no later than 30 (thirty) days from the date of receipt of notice in this regard from the
Bank (such notice the "Default Notice"), shall stop supplying the Products to the
Borrower and shall terminate the dealership agreement with the Borrower. The decision
of the Bank as to whether the Borrower has defaulted or not shall be final and binding
upon RIl and the Borrower.
9. That in the event RIl terminates or proposes to terminate the dealership agreement with
the Borrower, for any reason other than in accordance with Clause 8, RIL shall intimate
such termination to Bank simultaneously when RIL give notic eto Dealer about terminate
of the dealership.
10. That upon the termination or expiry of the dealership agreement/dealership of the
Borrower, for any reason, including in terms of Clause 8 and / or 9 above.
i. All amounts outstanding under the Credit Facilities shall forthwith become due and
payable sby the Borrower to the Bank
ii. RIL shall pay all the amounts payable by RIL to the Borrower (including Security
Deposit), on whatsoever account, net of RIL's dues till the date of termination or
beyond, directly to the Bank or the Dealer Account as may be required by the Bank
in writing.
iii. RIL shall provide all assistance to the Bank to enforce/foreclose the mortgage over
the retail Outlet and hypothecation over the Products in favour of the Bank.
The said period of 3 months shall commence from the date on which the entire amount
under the term loan becomes due and payable by the borrower to the Bank, pursuant to
the acceleration of the term loan by the Bank, as per the terms of the Credit Facilities
document or otherwise. It is understood by the parties that the enforcement/foreclosure
of the mortgage shall be through Court of law / DRT and RIL shall be entitled to
purchase the said retail outlet which includes landk, building and machinery/equipments,
if the Corut/DRT/its official permit/allow RIL to purchase the same and in respect of such
sale to RIL, the cost of the sale i.e. Stamp Duty and Registration Charges etc. shall be
borne by RIL. However, RIL shall make all efforts to purchase the same through
Court/DRT for the value not less than stated above.
Notwithstanding anything to the contrary contained in the Dealership Agreement, Lease
Deed or any other agreement or understanding that may be executed or reached not or
at any time in future, between the borrower and RIl, RIL hereby agrees that the Lease
Deed shall stand terminated in the event of failure of the RIL to remedy breach under
this clause within a period of thirty days from the date of the notice in wirting from Bank
informing RIL of any breach of this agreement or default of RIL observing any of the
above terms and conditions of this agreement. Such termination of the lease deed will
entitle the Bank to enforce the mortgage free of any encumbrances rights created in
favour of RIL and sale of the said land, building and equipment/machinery owned by
Borrower will be without the leasehold rights in favour of RIL, and the purchaser will get
good title to the said land, building, machinery/ equipment, when the said mortgage is
enforced by the Bank.
11. The Borrower hereby confirms that on termination of dealership agreement / dealership
of the Borrower, the Borrower shall sell all the Products then lying in stock to RIL at the
price the same were supplied to it by RIL less any commission/incentive paid thereon to
the Borrower by RIL and all amounts payable by RIL to the Borrower for the same shall
be paid by RIL to the Bank.
12. That in the event, the Borrower has committed a default under the Credit Facilities
Documents and / or in repayment of any amount due and / or payable under the Credit
Facility and / or on termination or expiry of the dealership agreement, the Bank shall be
fully and duly entitled to enforce the mortgage over the Retail Outlet as well as any and
all other security that may be provided for the Credit Facilities by the Borrower and / or
any other person and RIL will assist the Bank in enforcement of such security.
13. RIL hereby agrees and undertakes that RIL shall act on the undertakings given herein
above notwithstanding any contrary instructions issued by the Borrower in this regard.
14. In consideration of the Credit Facility being granted by the Bank to the Borrower, the
Borrower hereby irrevocably and absolutely represents, warrants, convenants and
undertakes with the Bank and RIL that :
i. The Borrower is the absolute and sole owner of the said Land and the said Land
is in its lawful possession and the said land is free from all encumbrances,
agreements to sell, prior sales/leases and it is free to deal with the said Land in any
ii. The original of title deeds of the said Land are in lawful possession of the Borrower
and the Borrower shall deposit the same with the Bank with an intent to create
mortgage over the said Land in favour of the Bank, on or before the disbursal of
any amount under the Credit Facilities or as may bee otherwise agreed by the
Bank;
iii. The Borrower shall create mortgage over the said Land and all construction and
improvements made thereon and machinery affixed to the earth thereat from time
to time shall also stand mortgaged in favour of the Bank. However such mortgage
shall not extend to any equipment belonging to RIL'
iv. The Borrower shall keep the Retail Outlet i.e. the said Land and construction, and
improvements made thereon and machinery affixed to the earth thereat and the
Products fully and comprehensively insured at all times, with the Bank as the Loss
payee;
v. The said Land can be used for setting up the Retail Outlet;
vi. The Borrower confirms and certifies that though the Borrower is the owner of the
said Land and shall also carry out construction thereon but since the said Land and
the construction thereon has been/shall be leased by the Borrower to RIL, the
Borrower is and shall at all times be using and occupying the Retail Outlet as a
user and at the will and pleasure of RIL and forthwith on receipt of any notice by
RIL, the Borrower shall remove itself and all its employees and representatives
from the Retail Outlet, without any demur, protest and delay. Provided always on
such removal Borrower shall not remove any of the equipment belonging to RIL or
any of its furniture, improvements, stocks, stocks of Products, equipment, items,
records, and the like, and shall leave the same as on the date of receipt of the said
notice from RIL;
vii. The Borrower irrevocably directs, instructs and authorizes RIL to do all acts, deeds
and things as RIL is required to do in accordance with this Agreement including but
not limited to termination of the Dealership Agreement and credit the amount of
Dealer Dues only to the Dealer Account or any other account or pay the same to
such person (including the Bank) or as may be directed, in writing, by the Bank
from time to time, and in no other manner notwithstanding anything contrary
contained in this Agreement and/or the dealership agreement and/or any other
agreement/document that may be executed now or in future by / between RIL and
the Borrower.
viii. The Bank, without prejudice to any of its other rights, shall be entitled to restrict
and/or prohibit the Borrower from operating and/or making any withdrawals from
the Dealer Account, without any prior or post notice to the Borrower, as and when
the Bank may so deem fit, at its sole and absolute discretion, and from time to time
and the Bank shall not be liable for dishonour of any cheque/payment
instrument/instruction resulting from such restruction and / or prohibition.
ix. The Borrower shall under no circumstances discontinue operations at the Retial
Outlet unless the dealership agreement is first terminated by RIL;
x. The Borrower hereby irrevocably authorizes RIL to do all acts, deeds and things in
accordance with the terms hereof, notwithstanding anyinstructions to the contrary
that it may have given/may give in future, to RIL;
xi. In the event Default Notice has been served by the Bank on RIL, any Products, for
which payment has been made by the Borrower to RIL but not supplied by RIL, RIL
shall not supply the same to the Borrower and shall hand over such payment
directly and only to the Bank;
15. Until credit facility/any of the Credit Facilities are available to the Borrower and till all
amounts there under or arising there from have been paid in full to the Bank, to the
satisfaction of the Bank, the Bank shall have a first and paramount lien and a right of set-
off on all bank balances, including but not limited to amounts lying in the Dealer Account,
fixed deposits with the Bank, property, assets and the like of the Borrower that are or
may come into possession of the Bank from time to time, irrespective of them or any one
or more of them being held in safe custody by the Bank or otherwise, and the Bank shall
also have a right to get any or all of them registered in the name of the Bank or its
nominees.
16. The term of this Agreement shall come into force from the date of this Agreement and
shall continue in full force and effect till such time any amount remains outstanding
under the Credit Facility or the Credit Facility remains available to the Borrower.
17. This Agreement shall not be amended, altered or modified expect b y an instrument in
writing expressly referring to this Agreement and signed by all the parties hereto.
18. If at any time, any provision of this Agreement is or becomes illegal, invalid or
unenforceable under the applicable law or judicial/administrative / governmental
directions, neither the legality, validity nor enforceability of the remaining provisions of
this Agreement shall in any way be affected or impaired thereby.
19. All approvals internal and corporate have been taken by the Borrower for availing of the
Credit Facility and for execution of this Agreement and the Credit Facility Documents
and creation of mortgage over the said Land and creation of security over its other
assets.
20. The provisions of this agreement are without prejudice to any right that the Bank
has/may have, to recover its dues outstanding under the Credit Facility from the
Borrower and/or to enforce the security created/that may be created in favour of the
Bank, in accordance with the Credit Facility Documents and/or in law.
21. Notwithstanding anything to the contrary contained in the Dealership Agreement or the
Lease Deed or any other agreement or understanding that may be executed or reached,
now or at any time in future between the Borrower and RIL, RIL and the Borrower shall
act in accordance with the terms of this agreement.
IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed the
day, month and year first above written.
through through
Authorized Signatory Mr. ________ Authorized Signatory Mr.
___________
through
Authorized Signatory Mr. ________
02. According to BPCL most of these dealers are under stocking resulting in
inefficiencies in supply chain. A major reason for this has been cited as lack of credit.
This presents us with an opportunity to extend finance and garner significant business.
Each of these dealers requires funding for 3 to 5 days of stocks, i.e. Rs.10.00 lakhs
approximately, on an average.
03. BPCL would circulate the terms and conditions of the arrangement and schedule of
charges (attached herewith as Annexure-I and Annexure-II respectively) to all its
dealers. Under the tie-up, BPCL shall extend the following comforts to the Bank:
a) Provide duly filled up “Opinion Report cum Comfort Letter” (format attached
herewith as Annexure-III) for every Petroleum Dealer willing to take finance from
SBI.
b) Intimate SBI about termination of a Petroleum Dealer’s dealership or any other
disciplinary action against a petroleum dealer like suspension, as soon as the
decision is taken about it. Such intimation shall take place by writing letter
simultaneously to the financing branch and Local Head Office of SBI.
c) In case of petroleum dealers availing working capital limit from SBI, BPCL will not
supply goods on credit basis, either partly or fully and such supplies will be made
against advance payment only.
d) In case of default by Petroleum Dealers (default shall be defined as inactivation of
account or non-payment of interest for more than 30 days), BPCL will make future
supplies to the dealer only if payments are received by BPCL in advance from the
cash credit account of borrower with SBI, BPCL shall put moral pressure on
Petroleum Dealer to pay back his over dues and reactivate the account with the
bank.
e) In the event of default by the Petroleum Dealer (the letter addressed by the bank
to the BPCL as to default by the dealer in making payment of dues etc is sufficient
conclusive proof of default by the Petroleum Dealer and BPCL shall undertake all
such activities required of BPCL to help recover the dues), Bank will seize such
goods of dealers financed by bank and BPCL shall purchase the said seized
goods from bank, subject to the goods meeting the quality parameters, at
realizable price.
f) Not withstanding anything contained in the agreement between BPCL and the
Petroleum Dealer, BPCL undertakes, in case of default and or termination of such
dealership, not to repay any dues (such dues shall include security deposit also)
to the borrower without taking prior approval of Bank. BPCL would make all such
amount available to the financing branch of Bank towards recovery of dues, if any,
after setting off all moneys due to BPCL.
04. As the ticket size of loans will be less than Rs.25.00 lacs, there will be no need for
carrying out CRA for such loans. For all limits above Rs.25.00 lacs CRA exercise has
to be carried out as per extant instructions. The limits can be sanctioned based on
their present turnover and inbuilt cushion of 25% (explained in Annexure-I), so as
to account for price increases. Such limits can be availed by the customers both as
Fund or Non Fund Based limits or a combination of both, subject to the exposure being
taken are within the overall sanctioned limits. All documents as per SME
Documentation should be obtained and KYC norms duly complied with.
05. In cases where CRA exercise has been carried out the interest rates to be charged
are as follows:
06. All proposals under the tie-up will be handled by SECC/SMECC as the case may
be, where such processing centres are established. This will apply irrespective of
turnover being higher than stipulated Rs.25.00 crores. A simplified application form is
attached herewith as Annexure IV. A format for carrying out appraisal and the interest
rate matrix for arriving at relevant interest rates is attached herewith as Annexure V.
07. The applicable interest rate for such loans can be decided by using the following
simple matrix:
The data required for above calculation, is a part of the Corporate Opinion Report to be
provided by BPCL and as such the branches need not collect this data. The detailed
format is attached herewith as Annexure-II.
08. Based on the above, cash credit accounts for the Petroleum Dealers in the area of
operations of the Circle may be opened in appropriate branches as per convenience of
the dealers. Wherever, the branch is CINB enabled, internet banking facilities should
be extended to the dealer which will enable him make free remittances to BPCL.
Special care should be taken to ensure that payments from the cash credit
account can only be made to designated BPCL account maintained with Bank.
This restriction will be applicable irrespective of whether payment is being made using
CINB or through cheques or drafts or STEPS. The designated account of BPCL in
which payment is to be made will be intimated in due course.
09. In case of default by the Dealer (default shall be defined as inactivation of account
or non-payment of interest for more than 30 days), the branch should immediately
inform the local office of BPCL and SME BU at LHO. Under the arrangement, on
intimation, BPCL shall restrict supplies to dealer. They will affect supply only against
payment received from designated Branch of SBI where the dealer’s account is parked.
10. In such cases, dealers would first be forced to regularize their account by making
deposits into their loan account. From the deposits so made, branch can deduct up to
25% towards adjustment of irregularities in the account and make available 75% for
remittance of BPCL towards further supplies. Once the account becomes normal,
regular operations can be permitted.
11. In case a dealer defaults twice, the Branch should endeavour to discontinue the
borrowing arrangement by asking the dealer to close the account. Intimation about the
proposed plan of action should be sent to BPCL and SME BU at LHO.
****************************************************************************************
WORKING CAPITAL FINANCE TO DEALERS OF BHARAT PETROLEUM
CORPORATION LIMITED
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Annexure III
We hereby confirm that the information given above is true to the best of our knowledge
and shall be treated strictly private and confidential and without any liability on the part
of Company for any credit decision taken by bank and accept the terms and conditions
as started in MOU signed by Bank and BPCL dated :
…………………. BRANCH
Identification Code :
2. Address of the unit
Ph. No:
Fax No.
Email / Website
Premises owned/returned
3. Address of Regd. Office in
case of Corporates
Premises owned/returned
4. Address for correspondence
Ph. No.
Fax No.
E-mail / Website
6. Year of Commencement of
Business
7. Experience in the line of
activity
8. Constitution
TERMS OF SALES
Value (Rs)
Petrol Qty in KL
Value (Rs)
Lubes Qty in KL
Value (Rs)
Others Qty in KL
Value (Rs)
Primary
Colleteral
IMMOVABLE PROPERTY
LIQUID SECURITIES
I/We declare that the information given in the application form are true, correct and
complete and that they shall from the basis of any kind of facility State Bank of India
may decide to extend to me/us. I/We shall furnish all other information that may be
required by the Bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate safe
guards/action for recovery of bank dues including publication of defaulters names in
website/submission to RBI. I/We confirm that I/we have no borrowing arrangements for
the unit with any bank except those indicated in the application. I/We confirm that I/We
are not defaulter of any bank/any financial institution. I/We confirm that there are no
over dues / statutory dues owned by me/us and I/We have/had no insolvency
proceedings against me/us not have I/we ever been adjudicated insolvent. I/we
undertake to abide by the Rules and Regulations of State Bank of India in respect of the
facilities being extended to me/us.
Date :
Place :
Designation :
LIST OF DOCUMENTS TO BE ATTACHED
3. Copies of the balance sheet (s) of the firm / company for past three years
Segment : SBF/C&I
Sector : Priority / non priority
Name of the unit / borrower :
Assessment of Working Capital (Cash Credit)
% increase in ‘a’
c) Net profit
d) Depreciation
e) Cash Accruals (d + e)
f) NWC
g) Current Ratio
Note : Where the dealearship is not generating adequate profit, appraising official
should examine the feasibility of the unit before recommending the limit.
WORKING CAPITAL REQUIREMENT
g) Recommended limit
@ Depending on the distance of the unit from the delivery point
# For arriving at the finance needed for stocking lubes, the period may range from 1
month to 45 days, depending upon past trends.
Terms and conditions of Sanction
I. SECURITY
Primary
Collateral
Margin (20%)
Tenure 15 days
Documentation
Processing charges
Submission of stock
statements
Inspection
Remittance Charges
Concessions in service
charges (if any)
Remarks :
Appraised by Assessed by Sanctioned by
Signature :
Name :
Designation :
Branch :
Date :
RISK MATRIX FOR APPLICABLE INTEREST RATE
Note : Interest rate can be reduced by 50 basis points if collateral securities are
available at least 50% of the loan amount.
Annexure 4
Annexure 5
(On the Letterhead of borrowing company)
Date :
To :
The Branch Manager,
State Bank of India
……………………Branch
Dear Sirs,
Distributor Financing Programme
We refer to your letter no _______________ dated _____________ and thank you for
offereing us a credit facility under your Distributor Financing Programme to finance our
purchases from Tata Motors Limited.
Yours faithfully,
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CREDIT SCORING MODEL ( For loans upto Rs.25 lacs)
Not owning 0
PG / addl. Qualification 4
Graduate 3
Homeopathy 4
Ayurveda 3
5 – 10years 4
3 – 5 years 3
< 3 years 2
Employed 1
Not employed 0
6. DSCR >=2 5 5
>=1.5 & <2 4
>=1 & <1.5 2
<1 0
Interest rate matrix & financial decision for loans upto Rs.25 lacs
Below No finance
*************************************************************
APPLICATION FOR DOCTOR (+) PLUS
Personal Details
3. Address: Business
Address; Residential
6. Academic Qualifications
(medical fields) Graduate (MBBS/BMS/Other)
PG
Specialisation
Loan A/c
Since
Loans Repaid
% of loan %
21. I / We Certify (i) all information furnished by me / us is true, correct and complete;
(ii) I / We have no borrowing arrangement for the unit with any Bank as except
indicated in the application; (iii) there are no over dues / statutory dues against me /
us; (iv) No legal action has been taken against me / us (v) I / We shall furnish all other
information all over information that may be required by Bank a connection with my
application; (vi) the information may also be exchanged by you with any agency you
may deem fit (vii) You, representatives of any other agency as authorized by you may
at any time inspect verify my / our assets, books of account etc. in our business
premise as given above (viii) You may take appropriate safeguards / action for
recovery of Banks dues including publication of defaulters name in web site /
submission to RBI, (ix) / We further agree that my / our loan shall be governed by the
rules of State Bank of India which may be in force from time to time.
Place : __________________
Documentary proof in the form of originals with self attested copies has to be produced
for verification. Originals to be returned and attested copies filed along with application.
Data to be attested and furnished only in respect of key promoter.
SBI-SIEMENS MEDICAL EQUIPMENT PLUS
8 Security: :
- Primary Hypothecation of assets financed by the Bank
- Collateral
For loans upto Rs.10 lacs – NIL
For loans over Rs.10 lacs – Tangible security for at least
50% of the loan amount
9 Processing fees Waived
10 Repayment 5 to 8 years including a moratorium period not exceeding
1 year
Product highlights:
Our Bank is the largest financier for medical practitioners and in order to maintain and
further enhance our product profile to this segment of borrowers, the Bank has entered
into a tie up arrangement with M/s. Siemens Ltd. which is in itself a globally recognized
manufacturer of hitec medical equipment, for financing purchase of their products by
medical practitioners, nursing homes, clinics, diagnostic centres, etc. Siemens will
identify the prospective buyers and refer them to the Bank who will consider the
proposals on merits and if found acceptable, will sanction the required term loan .the
proceeds of the term loan , together with the margin money component will be directly
forwarded to Siemens after the receipt of the equipment by the borrower within 3 days.
Loans upto Rs.25lacswill be considered under Doctor plus scheme and for amounts
above that C&I norms will apply.
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SBI-DENTAL EQUIPMENT PLUS
TIE UP with Confident Dental Equipment Ltd.
DSCR 1.5
6 Margin :
Upto Rs.25000/- nil
Upto Rs.5lacs 10%
Over Rs.5 lacs 20%
Product highlights:
Our Bank is the largest financier for medical practitioners and in order to maintain and
further enhance our product profile to this segment of borrowers, the Bank has entered
into a tie up arrangement with M/s Confident Dental Equipment Ltd. for financing
purchase of their products by medical practitioners, nursing homes, clinics, diagnostic
centres, etc. The Company will identify the prospective buyers and refer them to the
Bank who will consider the proposals on merits and if found acceptable, will sanction
the required term loan .the proceeds of the term loan, together with the margin money
component will be directly forwarded to the Company after the receipt of the equipment
by the borrower within 3 days.
Marketing tips:
Ä M/s Confident Dental Equipment Ltd. will identify the prospective buyer /
borrower and it is expected that we process the applications within 15 days
of receipt.
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TIE – UP WITH APOLLO HEALTH AND LIFESTYLE LTD.
6 Margin : 33.33% for term Loan and 25% for Cash Credit
9 Processing fees 0.25% of the TL and Rs.250/- per lac for CC limit
12 Special features : ¾ Bank has entered into an MOU with Apollo Health
and Lifestyle(AH&LL) to finance their franchisees for
setting up integrated clinics. AH&LL will follow
stringent due diligence procedure based on the
following parameters ;-
Reputation of the key promoters
Personal wealth and contribution as equity
Business acumen of the promoter
Experience of the promoter in healthcare
Population per clinic in the town
Location of the clinic
Proposals have to be subjected to risk analysis on the
prescribed matrix and categorized into one of three
categories namely, Extremely Satisfactory(A),
Satisfactory(B) and Not satisfactory(C).A and B category
proposals can be taken up for detailed appraisal as per
CRA model on usual lines.
Inspection to be undertaken at monthly intervals
Insurance to be obtained for all assets financed by the
Bank for full value and for all risks
Product Highlights:
This product is a unique package for increasing our exposure to the healthcare
sector in a big way. The MOU with AH&LL envisages that the Apollo franchisees
are chosen by AH&LL after stringent due diligence which will be shared with the
Bank. Thereafter, the proposal will have to be vetted for Risk assessment on the
specially designed format and only if found acceptable, the detailed appraisal will
have to be taken up. Both TL and CC can be sanctioned as per need and if the
CRA rating is at least SB4/SBTL4.
Marketing Tips:
While the proposed Apollo clinics will provide ample scope for finance, the scope
for cross-selling of our other products such as Import LCs, Insurance for
equipment through our tie-ups with GIC, Medi–plus schemes for eligible patients,
etc.
FAQs
It is advisable to have the proposal vetted and recommended by the Apollo to enable
them to do due diligence regarding the capability of the promoters to start such a clinic
both on financial and technical aspects
Can we entertain proposals with the financials of the project being either for a lower
value or higher value?
Yes. The project will have to be checked for financial viability to ensure prompt
repayment of instalments and interest.
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State Bank of India
______________________ branch
Application cum interview form for financing of Apollo Clinics
Name of the Unit
For term loans, please enclose projected profitability statements covering the period of
repayment
Details of Security offered
Primary
Collateral
(i) Immovable property
Description of Name of the Owner Value of the Basis of Valuation
property property
I/We declare that the information given in the application form are true, correct and
complete and that they shall form the basis of any kind of facility State Bank of India
may decide to extend to me / us. I / we shall furnish all other information that may be
required by bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate safe
guards / action for recovery of bank dues including publication of defaulters names in
website / submission to RBI. I/We confirm that I/we have no borrowing arrangements for
the unit with any bank except those indicated in the application. I / We confirm that I /
We are not defaulters of any Bank / any financial Institution. I / We also confirm that
there are no overdues / statutory dues owed by me / us and that I / We have / had no
insolvency proceedings against me / us nor have I / we ever been adjudicated insolvent.
I / We undertake to abide by the Rules and Regulations of State Bank of India in respect
of the facilities being extended to me / us.
Signature of Borrower
Any other information : (Including specific reasons for Letter of Credit / Bank Guarantee
/ etc…)
Performance Parameters Post / projects
Past three Projections
years
31.3 31.3 31.3 31.3 31.3
Sales /
income
Net Profit
Depreciation
Cash
Accrual
Tangible Net
Worth
TOL / TNW
DSCR
For term loans, please enclose projected profitability statements covering the period of
repayment
Primary
Collateral
I/We declare that the information given in the application form are true, correct and
complete and that they shall form the basis of any kind of facility State Bank of India
may decide to extend to me / us. I / we shall furnish all other information that may be
required by bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate safe
guards / action for recovery of bank dues including publication of defaulters names in
website / submission to RBI. I/We confirm that I/we have no borrowing arrangements for
the unit with any bank except those indicated in the application. I / We confirm that I /
We are not defaulters of any Bank / any financial Institution. I / We also confirm that
there are no overdues / statutory dues owed by me / us and that I / We have / had no
insolvency proceedings against me / us nor have I / we ever been adjudicated insolvent.
I / We undertake to abide by the Rules and Regulations of State Bank of India in respect
of the facilities being extended to me / us.
Signature of Borrower
Any other information : (Including specific reasons for Letter of Credit / Bank Guarantee
/ etc…)
Performance Parameters Post / projects
Past three Projections
years
31.3 31.3 31.3 31.3 31.3
Sales /
income
Net Profit
Depreciation
Cash
Accrual
Tangible Net
Worth
TOL / TNW
DSCR
For term loans, please enclose projected profitability statements covering the period of
repayment
Details of Security offered
Primary
Collateral
(i) Immovable property
Description of Name of the Owner Value of the Basis of Valuation
property property
I/We declare that the information given in the application form are true, correct and
complete and that they shall form the basis of any kind of facility State Bank of India
may decide to extend to me / us. I / we shall furnish all other information that may be
required by bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate safe
guards / action for recovery of bank dues including publication of defaulters names in
website / submission to RBI. I/We confirm that I/we have no borrowing arrangements for
the unit with any bank except those indicated in the application. I / We confirm that I /
We are not defaulters of any Bank / any financial Institution. I / We also confirm that
there are no overdues / statutory dues owed by me / us and that I / We have / had no
insolvency proceedings against me / us nor have I / we ever been adjudicated insolvent.
I / We undertake to abide by the Rules and Regulations of State Bank of India in respect
of the facilities being extended to me / us.
Signature of Borrower
o Assign any one of the three codes (A, B & C) to all the considerations as
above.
A = Extremely Satisfactory.
B = Satisfactory &
C = Not Satisfactory
o The marks assigned to these codes are A = 10, B = 6 & C = 3
o Calculate the total score of the risk matrix by multiplying weightage of
each consideration with the marks of these codes (e.g. if a proposal gets
B in “location of the clinic” then, 10%* 6 =0.6 mark would be given to the
first consideration and accordingly the sum or all consideration will be
calculated for the proposal).
1 2 3 4 5
Parameters Considerations Weightage Code Score
(A, B, C) 3* 4
Location Location of the Clinic 10%
(30%) Population / No. of 20%
polyclinics in the city or
region
Owner Reputation of the owner 25%
(50%) Personal wealth of the 10%
owner
Previous business 15%
performance
Projections Cash flow estimates 20%
(20%)
Total
Based on the score achieved by every proposal, the collateral security is to be decided.
Maximum score that can be achieved by a proposal is 10 and minimum score is 3. The
calculation of collateral security to be made as under.
Score received by the proposal Collateral security to be considered
8 or more than 8 50% of the term loan amount
6 or more but less than 8% 75% of the term loan amount
4 or more but less than 6 100% of the term loan amount
Less than 4 Term Loan not to be considered
7. There is an understanding with Apollo that all the applications will be processed
within 10 days from the date of receipt of application and complete documents.
Branches should ensure sanctity of the commitment made by the Corporate Centre with
Apollo.
SCHOOL PLUS
Product Highlights:
Educational institutions are required to incur heavy capital expenditure for providing
quality education to the students in comfortable and safe surroundings. As a measure to
provide timely credit to such institutions subject to the repaying capacity through
adequate income being available, this product has been designed by the Bank for
delivery through Scale III and above incumbency branches.. The repayment schedule is
also made flexible to avoid straining the liquidity of the institution.
Marketing Tips:
¾ Schools which have a large student population but housed in inadequate
or unsafe buildings of poor quality can be approached for availing this
product.
¾ End of the school year is an appropriate time to market this product as the
schools tend to take up renovation / expansion works during vacation time.
FAQs
No but such institutes can be considered under the regular CRA model or under
the Mortgage Loan
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Index
State Bank of India
______________________ branch
Application cum interview form for financing Schools
Any other information : (Including specific reasons for Letter of Credit / Bank Guarantee
/ etc…)
Business Information
Marketing arrangements
Level of competition
Major competitors
Competitive advantage of the unit
Fees details
Fee charges per month
No. of Students
Other income
Average Receivables
Level
Performance Parameters Post / projects
Past three Projections
years
31.3 31.3 31.3 31.3 31.3
Sales /
income
Net Profit
Depreciation
Cash
Accrual
Tangible Net
Worth
TOL / TNW
DSCR
For term loans, please enclose projected profitability statements covering the period of
repayment
Primary
Collateral
I/We declare that the information given in the application form are true, correct and
complete and that they shall form the basis of any kind of facility State Bank of India
may decide to extend to me / us. I / we shall furnish all other information that may be
required by bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate safe
guards / action for recovery of bank dues including publication of defaulters names in
website / submission to RBI. I/We confirm that I/we have no borrowing arrangements for
the unit with any bank except those indicated in the application. I / We confirm that I /
We are not defaulters of any Bank / any financial Institution. I / We also confirm that
there are no overdues / statutory dues owed by me / us and that I / We have / had no
insolvency proceedings against me / us nor have I / we ever been adjudicated insolvent.
I / We undertake to abide by the Rules and Regulations of State Bank of India in respect
of the facilities being extended to me / us.
Signature of Borrower
1 2 3 4 5
Parameters Factors Weightage Code Score
(A, B, C) 3* 4
Past record of the Average % of passing 20%
students (20%) children (all classes)
Quality of teachers
Existing facilities like Science or Computer Laboratories, Libraries, Facilities for teaching
crafts, arts, music, dance etc and playgrounds.
o Assign any one of the three codes (A, B & C) to all the considerations as
above.
o The marks assigned to these codes are A = 10, B = 6 & C = 2
o Calculate the total score of the risk matrix by multiplying weightage of
each consideration with the marks of these codes (e.g. if a proposal gets
B in “past record of the students” then, 20%* 6 = 1.2 mark would be given
to the first consideration and accordingly the sum of all consideration will
be calculated for the proposal).
1 2 3 4 5
Parameters Factors Weightage Code Score
(A, B, C) 3* 4
Experience No. of years in the industry 20%
promoters / trusts
(20%)
Faculty (10%) Quality of teachers 10%
Brand name (10%) Reputed Chain 10%
Expected Demand Density of school, 20%
(20%) composition of middle,
upper middle or higher
income families in the area
Facilities (10%) Science / Computer lab, 10%
Library, Arts & Crafts, Play
ground etc.
Security Value (30%) Primary + Collateral 30%
security
Quality of teachers
Brand Name
Facilities
o Assign any one of the three codes (A, B & C) to all the considerations as
above.
o The marks assigned to these codes are A = 10, B = 6 & C = 2
o Calculated the total score of the risk matrix by multiplying weightage of
each consideration with the marks of these codes.
Margin : 20%
Security: :
- Primary Hypothecation charge to be registered with RTA.
- Collateral
Mortgage of immovable / movable property to cover
50%of the loan amount and / or third party guarantee
Methodology and M&M dealers will obtain applications and after due
Operation of the diligence will forward them to the Bank for appraisal and
account sanction if found acceptable in all respects.
Product highlights:
This scheme is for extending a soft loan to ex-servicemen to help them to augment their
income in post-retirement period by undertaking a suitable economic activity. Finance
can be extended for purchase of upto 10 transport vehicles of any make in utility and
LCV range and cabs.. This loan can be covered under tie up arrangements of the Bank
with M&M, in which case, the borrower will get the benefit of the subvention amount and
two additional free service coupons.
Marketing tips:
Ä Processing fees has been waived,
Ä the repayment is extendable upto 7years.
Ä Collateral can be only upto 50% of the loan amount.
FAQs
Only for the margin money assistance portion and not for the term loan.
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CORPORATE LOAN
1. Target Group : Existing C&I and SSI customers and also non customers
subject to take over norms.
7 Rate of Interest : At least one step higher than the applicable rate as per
the CRA rating
8 Security: :
- Primary First charge on assets created from bank finance or
extension of first charge on current assets as the case
may be.
- Collateral 1. First charge on fixed assets on pari passu basis
with other term lenders In case this is not possible
for valid reasons, second charge on fixed assets
should be obtained.
2. Personal Guarantee of promoters/partners/
proprietor should be obtained. In the case of
Corporates, pledge of promoters' equity should be
explored.
9 Processing fees As applicable to SSI / C&I units
Product Highlights:
Corporate loans have been in vogue for sometime for corporate entities. It is a clean
term loan which can be used for any specified purpose connected with the unit such as
shoring up of net working capital, VRS scheme for its employees, advertisement
campaign, replacing high cost debt with low cost funds and so on. The loan can be
extended for a minimum amount of Rs.25 lacs to Rs.10crores for non –corporates and
for any amount for a corporate.
Marketing tips:
Ä This is a useful product to attract the borrowal units of other banks to our
books subject to fulfillment of takeover norms.
Ä Units which are facing liquidity crunch can be offered this loan to shore up
their working capital funds.
Ä Units which are contemplating VRS scheme to reduce their wage bill are a
good source for this product.
Ä Units which are about to launch a new product and require to spend on
advertisement and promotion can avail this facility.
FAQs
Ä Can improved pricing be offered to units below the applicable rate for
attracting good business connections?
Based on merits on a case to case basis, finer pricing can be offered after
obtaining approval from the appropriate authority.
Ä Who is the appropriate authority?
If the pricing is to be the same as that applicable as per CRA rating, the
sanctioning authority has the discretion to approve the same. For any further
improvement in pricing, the authority will depend upon the quantum of
reduction sought in the rate of interest to be charged.
Back to
Index
RENT PLUS
Product Highlights:
This product provides finance against assignment of future rentals. The scheme is
available at metro & urban centres only and is aimed at owners of residential or
commercial projects which have been lease out to large or medium corporates, and
Banks / MNCs. The credit is extended by way of a term loan and is repayable within the
residual period of lease not exceeding 7 years
Marketing tips:
This product can be offered to all the owners of our Bank's rented premises
both for branches as well as residential purposes.
The product can also be offered to owners of other banks' branch premises as
the terms and conditions of our product are much more attractive than those of
other banks for a similar product.
FAQs
Can we accept some other property as collateral than that which has been rented
out and the rent receivables of which are being offered as primary security?
Yes. Any property whose value is estimated to be at least 120% of the loan
amount OR personal guarantee from an acceptable person(s) can be accepted as
collateral .
Ä Can we extend this facility if the lessee is not an MNC/Bank/corporate?
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WORKING CAPITAL FINANCE TO PRIVATE BUILDERS OF RESIDENTIAL FLATS
Construction activity has been witnessing exponential growth in recent years generating
vast employment opportunities. The Bank has also to tap this opportunity for business
by way of credit facilities, both fund based and non fund based. Construction activity is
financed by way of cash credit for which the assessment is based on cash budget
subject to a limit of Rs.5crores or 5 times the networth of the applicant or 50% of the
project cost whichever is less.
Marketing tips:
¾ We can give housing loans for flats in a building for which we have already
extended credit facilities to the builder. It would be easier to process proposals
since the due diligence regarding the project would have already been
completed. The proceeds of the housing loans will be used for extinguishing the
loan to the builder.
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Index
LOANS FROM FCNR(B) FUNDS
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Index
Construction Equipment Loan (CEL)
7 Rate of Interest : For SB1 & SB2 borrowers: 1.50% below SBAR
For others : 1.25% below SBAR
No further concession would be considered.
8 Security: : 1.Hypothecation of machinery/ equipment / vehicles
- Primary financed by the Bank.
2. Registration Charge with RTA
3. Pre payment cheques for principal amount, favouring
SBI a/c CEL…….(Name of borrower)
- Collateral
Hypothecation of other unencumbered equipment or EM
of property to the extent of at least 25% of the loan
amount
9 Processing fees For SB1, 2 borrowers – Rs.200 per Rs.1 lac loan
amount
For other borrowers – Rs.300 per Rs.1 lac loan amount
Sanctioning authority has discretion to reduce upto 50%
Documentation Charges:
For SB1 SB2 borrowers – Rs.5000/-
For others - Rs.10000/-
Note :-
• All other terms and charges as per card rates. Back to
• This scheme is valid 31.03.2010 Index
SME CARE
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Index
SME HELP
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Index
Application Form for eVFS Facility
Customer No.
Account No.
Branch
Date
2. Address:
Registered Office Business/ Factory Address
Pin: Pin:
3. Telephone: 4. Fax:
7. Please tick (√) the constitution of the firm (Refer to Annexures for documents to
be submitted):
9. Gender: M/F
10. Address:
Name of the Shareholder No. of Shares Face Value of Holding %age Share
19. Photographs:
Name(s) of Proprietor/ Partners/ Specimen Signature (with Signature, Name and S.S.
Persons (in case of Companies/ Rubber Seal) No. of Verifying Official
Trusts, etc.)/ authorized to
operate the account
22. Has the company ever been rated by any external agency:
Yes: No:
If Yes, Please mention the name of External Rating Agency, year and the latest
rating
23. Details of other business or identical business (Associate/ Sister/ subsidiary
concern if any):
Name of Name of Main Bankers WC Limit T/L (O/S) Other
Unit Proprietor/ Activity Name (Lacs) (Lacs) facilities
Partner (Lacs)
26. Do you wish to avail SMS/ E-mail intimation facility of SBI? Yes No
(You will receive one SMS/ e-mail/ both the moment your account gets credited)
28. Brief particulars about significant developments that took place in your business
in the last and current financial year. State reasons if there was/ is a substantial
increase/ decrease in the projected turnover.
29. Please enclose last 2 year’s audited balance sheets along with your sales
projections for the whole company and to the IM separately for the current year
along with a copy of the latest purchase order/s received from the IM.
Other information:
Date of Establishment/ Incorporation:
Sales/ Excise Tax Reg. No:
PAN/ GIR Number or Form 60/61 of Income Tax Rules:
I/ We request you to provide the eVFS facility to me/us for Rs._____________. I/We
declare that the information given in the application form are true, correct and
complete and that they shall from the basis of any kind of facility State Bank of India
may deicide to extend to me/us. I/We shall furnish all other information that may be
required by the Bank in connection with my application. The information may also be
exchanged by you with any agency you may deem fit. You may take appropriate
safe guards/action for recovery of bank dues including publication of defaulters’
names in website/submission to RBI. I/We confirm that I/we have no borrowing
arrangements for the unit with any bank except those indicated in the application.
I/We confirm that I/We are not defaulter of any bank/any financial institution. I/We
confirm that there are no over dues / statutory dues owed by me/us and I/We
have/had no insolvency proceedings against me/us nor have I/we ever been
adjudicated insolvent. I/we undertake to abide by the Rules and Regulations of State
Bank of India in respect of the facilities being extended to me/us.
Yours Faithfully,
Name Signature Date
(Authorized Signatories)
Annexure-1
We hereby certify that the following resolution of the Board of directors of the
Company, Limited was passed at a meeting of the Board held on the
and has been duly recorded in the Minute Book of the said company:‐ “resolved:‐ that a bank
account for the Company be opened with the State Bank of India, and that the said Bank be
and is hereby authorized to honour cheques, bills of exchange and promissory notes drawn,
accepted or made on behalf of the Company by and to act on any
instructions so given relating to the account, whether the same be overdrawn or not, or
relating to the transactions of the Company.”
sd/‐ sd/‐
Secretary Chairman
Sd/‐
Directors
Authorised Official
STATE BANK OF INDIA
The document is the approved Policy of State Bank of India in regard to Know Your Customer Standards
to be followed and measures to be taken in regard to Anti Money Laundering and Combating Financial
Terrorism. The document is current as on ________ and incorporates the statutory and regulatory
guidelines issued in this regard upto the 1st July, 2008. This circular can also be viewed and downloaded
from SBI Times, Bank’s intranet site from the link “Policies”.
Policy on Know Your Customer Standards,
Anti Money Laundering and Combating Financial Terrorism Measures
INDEX
Pg.Nos.
1. Preamble 3
2. Objective, Scope & Application 3
3. Definition of Money Laundering 4
4. Obligations under Prevention of Money Laundering Act, 2002 5
5. Money Laundering – Risk Perception 5
6. Definition of a Customer 5
7. Key Elements of the Policy 6
7.1 Customer Acceptance Policy 6
7.2 Customer Identification Procedures 7
7.3 Small Deposit Accounts 8
7.4 Monitoring & Reporting of Transactions 9
7.5 Closure of Accounts 10
7.6 Risk Management 10
8. Employee Training 11
9. Recruitment/Hiring of Employees 11
10. Customer Education 11
11. Introduction of New Technologies 12
12. KYC for the existing accounts 12
13. Branches and subsidiaries outside India 12
14. Correspondent Banking 12
15. Miscellaneous 13
16. Principal Officer 13
17. Review of the Policy 13
Policy on Know Your Customer Standards and
Anti Money Laundering/Combating Financial Terrorism Measures
1. Preamble
Reserve Bank of India has been issuing guidelines in regard to Know Your Customer
(KYC) standards to be followed by banks and measures to be taken in regard to Anti
Money Laundering (AML) and Combating Financial Terrorism (CFT). The guidelines
incorporate the:
• obligations cast on banks under the Prevention of Money Laundering Act
(PMLA), 2002
• recommendations made by the Financial Action Task Force (FATF) on AML
standards and CFT
• paper issued on Customer Due Diligence (CDD) for banks by the Basel
Committee on Banking Supervision
Banks are required to put in place a comprehensive policy framework, duly approved by
the Board of Directors, in this regard. This policy document has been prepared in line
with the RBI guidelines and incorporates the Bank’s approach to KYC, AML and CFT
issues.
Money launderers use the banking system for cleansing ‘dirty money’ obtained from
criminal activities with the objective of hiding/disguising its source. The process of
money laundering involves creating a web of financial transactions so as to hide the origin
and true nature of these funds.
For the purpose of this document, the term money laundering would also cover financial
transactions where the end use of funds goes for terrorist financing irrespective of the
source of the funds.
These requirements have come into effect from the 1st July, 2005 i.e. the date on which PMLA was notified by the Government of India and
rules framed there under.
5. Risk Perception
Non compliance with KYC standards, use of the portals of the Bank for Money Laundering/financing terrorism activities expose the Bank to various
risks, such as Operational Risk, Reputation Risk, Compliance Risk and Legal Risk etc.
.
6. Definition of a Customer
A customer, for the purpose of the Policy is defined as:
(i) a person or an entity that maintains an account and/or has a business relationship
with the Bank
(ii) one on whose behalf the account is maintained (i.e. the beneficial owner)
(iii) beneficiaries of transactions conducted by professional intermediaries, such as
Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law,
and
(iv) any person or entity connected with a financial transaction.
Customers will be classified into three risk categories namely High, Medium and Low,
based on the risk perception. The risk categorization will be reviewed periodically.
The Customer Identification Procedures are to be carried out at the following stages:
o while establishing a banking relationship;
o when the bank feels it is necessary to obtain additional information from the
existing customers based on the conduct or behaviour of the account.
o Customer identitification data (including photograph/s) should be periodically
updated after the account is opened. Such verification should be done atleast once
in five years in case of low risk category customers and not less than once in two
years in case of high and medium risk customers.
o Customer Identification will also be carried out in respect of non-account holders
approaching bank for high value one-off transaction as well as any person or entity
connected with a financial transaction which can pose significant reputational or
other risks to the Bank.
If at any point, the balances in all his/her accounts with the Bank (taken together) exceeds
Rs. 50,000/- (Rupees fifty thousand only) or total credit in all accounts taken together
exceeds Rs. 1,00,000/- (Rupees one lac only) in a year, no further transactions will be
permitted until full KYC procedure is completed. Bank would notify the customers when
the balances reach Rs. 40,000/- (Rupees forty thousand only) or total credit in a year
reaches Rs. 80,000/- (Rupees eighty thousand only) so that appropriate documents, for
complying with full KYC requirements are submitted well in time to avaoid blocking of
transactions in the account.
System supported monitoring of transactions will be done by the AML team under the
Principal Officer, based on alerts thrown up by the AML software acquired by the Bank
and on the basis of feedback/inputs from LHOs, Administrative Offices, Regional
Business Offices and respective relationship points. Simultaneously, however, relationship
points will maintain oversight over the transactions with a view to identifying suspicious
transactions and bringing them to the notice of the Principal Officer.
After due diligence at the appropriate level in the Bank, transactions of suspicious nature
and/or any other type of transaction notified under PMLA will be reported by the
Principal Officer to Financial Intelligence Unit – India (FIU-IND), the appropriate
authority. A record of such transactions will be preserved and maintained for the period as
prescribed in PMLA.
Transactions in the accounts will also be monitored with a view to timely submitting, the
Cash Transaction Report (CTR) in respect of cash transactions of Rs. 10,00,000/- (Rupees
ten lacs only) and above undertaken in an account either singly or in an integrally
connected manner.
All cash transactions, where forged or counterfeit Indian currency notes have been used,
shall also be reported immediately by the branches, by way of Counterfeit Currency
Reports (CCRs) to the Principal Officer, through proper channel, for onward reporting to
FIU-IND.
While the Bank has adopted a risk based approach to the implementation of this Policy, it
is necessary to establish appropriate framework covering proper management oversight,
systems, controls and other related matters.
Bank’s Internal Audit of compliance with KYC/AML Policy will provide an independent
evaluation of the same including legal and regulatory requirements. Concurrent/ Internal
Auditors shall specifically check and verify the application of KYC/AML procedures at
the branches and comment on the lapses observed in this regard. The compliance in this
regard will be placed before the Audit Committee of the Board at quarterly intervals.
The Principal Officer designated by the Bank in this regard will have overall responsiblity
for maintaining oversight and coordinating with various functionaries in the
implementation of KYC/AML/CFT policy. However, primary responsibility of ensuring
implementation of KYC/AML/CFT Policy and related guidelines will be vested with the
respective Business Groups/Circles/SBUs. Suitable checks and balances in this regard will
be put in place at the time of introducing new products/procedures as also at the time of
review of existing products/procedures for overall risk and compliance management. For
this purpose, each Business Group/Circle/SBU will designate an official as Money
Laundering Reporting Officer (MLRO) who would ensure proper implementation and
reporting, as per provisions of this Policy, to the Principal Officer.
8. Employee Training
All employee training programmes, of 6 days’ duration or more, will have a module on
KYC Standards/AML/CFT Measures so that members of the staff are adequately trained
in KYC/AML/CFT procedures.
9. Recruitment/Hiring of Employees
KYC norms/AML standards/CFT measures have been prescribed to ensure that criminals
are not allowed to misuse channels of the Bank. Bank will put in place necessary and
adequate screening mechanism as an integral part of its recruitment/hiring process of
personnel.
15. Miscellaneous:
• Information collected from the customers for KYC compliance should be relevant to
the perceived risk, not intrusive and should be treated as confidential. The same is not
to be used/divulged for cross selling or any other such purpose.
• Any remittance of funds by way of demand drafts, mail/telegraphic transfer or any
other mode and issue of travellers’ cheques for value Rs.50,000 and above is effected
only by debit to customer’s account or against cheques/drafts and not against cash.
• Provisions of Foreign Contribution (Regulation) Act, 1976, as amended from time to
time, wherever applicable, should be strictly adhered to.
********
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Index
ASST GENERAL MANAGER/ CHIEF MANAGER: - FOR SANCTION
Office
14. Brief background & History :-( to be brief and in bullet points only)
(Comments on management, products, tie-up arrangement if any, quality
approvals/certifications etc)
16.Term Loan:
Project Details Project Cost Rs.
Bank Loan Recommended Rs.
(As per assessment in annexure-III)
Debt /Equity
19. Whether (a) the name(s) of the Individual/Directors appear(s) in RBI’s list of
defaulters/RBI’s list of willful defaulters & (b) the Individual/Directors name figures in
ECGC’s caution list
PARTICULARS DATE POSITION
RBI Willful Defaulters list(Non-Suit Filed)Rs.25lacs and
above
CIBIL List(Suit filed) Rs.25 lacs and above
ECGC specific approval list
20. Comments on I&A and other audit reports, which have an impact on credit risk on
the unit:, if any:
21. If the unit has scored less than 60% marks in any of the individual parameters in
SME Smart Score, please comment critically on those parameters (even though the
aggregate score may be more than 60%)
22. Recommendations;
Recommended for sanction of Working Capital limit of Rs.
Term loan of Rs.
Total limit --------------
Signature
Name
Designation
Date
Enclosure:
Applicant’s application.& others
Statement of Credit Score arrived as annexure -I.
Controlled by
Signature
Name
Designation
Date
Annexure-I
CREDIT SCORING CRITERIA
1. Personal details :
2.A For existing units which have not so far availed any loan from the Bank. If
takeover from another Bank, takeover norms, prescribed by the bank are to be first
evaluated and fulfilled.
Sr. Parameters Maximum Marks Criteria Marks
No. marks Scored
1 Years in business 5 5 Years & 5
over 3
3 Years to < 1
5
1 year to < 3
2 Continuous net profits 5 Last 3 years 5
(before tax) Last 2 years 3
Last year 1
3 Sales show a rising trend 5 Last 3 years 5
Last 2 years 3
4 Factory premises 3 Owned or
over 5 years 3
of lease 0
Rented
5 Know-how 2 Specialised 2
Common 0
6 Line of activity 1 Priority 1
Sector 0
Non priority
7 Competition 4 Low 4
Medium 2
High 0
8 TOL/TNW (quasi equity to be 5 2 & Below 5
added to TNW and reduced > 2 but upto 4
from TOL) 3 2
> 3 but upto 4 1
> 4 but < 5
9 a Quality of receivables 5 Upto 3
months of 5
sales
> 3 but upto 4 1
months of
sales 0
> 4 months of
sales
9 b Quality of finished goods 5 Upto 1 month
inventory of sales 5
> 1 but upto 2
months of 1
sales
> 2 months of 0
sales
10 Repayment period (not 5 Upto 3 years 5
applicable for only working > 3 to 5 years 3
capital loans) > 5 years 0
11 Gross DSCR (not applicable 5 > 2 5
for only working capital loans 1.6 To 2 2
< 1.5 0
50
MARKS SCORED
Items 10 & 11 are not applicable for working capital loans alone. In that case the score
should be normalized for 50 (marks scored/40)*50
Minimum score should be 25
3. Collateral conditions:
Minimum Marks are 10 (except in cases where Collateral should not be asked as per
Bank’s norms, where the minimum marks will be NIL)
Annexure-II
i)Assessment of LC limits:
Rs.in lakhs
Annual Raw Material purchases
Monthly Raw Material purchases
Monthly Raw Material purchases through LC’s @ % (A)
Average Usance Period (B)
Lead Time and transit period (C)
Total of ‘B’ and ‘C’ (D)
LC limits required (= A X D)
Recommended LC Limits
Assessment of BG limits:
Rs.in lakhs
Outstanding BGs as on
Add: BG’s required during the next 12 months, as under
1.Earnest Money deposit
2.Security Deposit
3.Advance Payment BG
4.Retention Money Deposit/Maintenance Guarantee
5. Guarantees on account of sales tax, commercial tax and excise duty
payments
Less: Estimated maturity/cancellation of BG’s during the period .
Requirements of BG’s
Recommended BG limit
Means of finance
Own funds
Borrowings from
friends and
relatives
Bank finance
others
Total means of Debt /Equity :
finance
3. Details of capital expenditure i.e land and factory building as well as machinery
proposed to purchase:
Personal Guarantee
(Indicate Net worth of
Guarantors with date
of compilation of
opinion reports)
3. Interest CC(HYP):
(Linked to SBAR) TL:
Phone/Cell No.
5.Nature of activity
6. a).Date of Last
Sanction/review
b) Sanction is Valid up to
7. IRAC Position as on
8.Present Position of Facility Limit DP O/S Irregularity if
Accounts as on date any
(Rs. In lakhs) CC
TL
LC/BG
Comments on Conduct of above accounts:
9.Financial parameters
(Rs. In lakhs) Year Earlier Actual Estimated
Estimated achieved (Current
(previous (previous year)
year) year)
Net sales
PBT
Cash
Accrual
TNW
TOL/TNW
CR
Comments( to be commented on actuals for deviations
over estimates, if any)
14. Recommendations
The Conduct of WC loan and Term loan has been reviewed and found satisfactory. The
Credit Score for renewal of limits is as per annexure –I, is satisfactory.
2. Recommended for release of additional working capital limit of Rs. as per the original
sanction on (give date) for the projected year-----
On the above terms and conditions as already set out in the original sanction dated—
Appraised by Approved by
Signature
Name
Designation
Date
Name of the Borrower:
Appraised by Approved by
Name
Date
APPRAISAL NOTE FOR SME CREDIT CARD
(Quantum of Finance Maximum Rs.10.00 lakhs)
CREDIT SCORE: /60. (Minimum 36) (as per annexure-I) Segment : SSI/SBF/C&I
1.Name of the unit
2 Constitution
Registration No. of the
unit.( if applicable)
3.Name of the Proprietor/
Partners /directors
4. Business Address
Phone/Cell No.
5.Nature of activity
6. Banking with us from
7.Details of Limits as on Existing Limits Proposed Limits
date. (Rs.in lakhs) CC(Hyp) CC(Hyp)
TL TL
LC/BG LC/BG
Total indebtedness
8.Brief History 1.
(Brief bullet points only) 2.
(on Management, 3.
products, marketing tie- 4.
up etc.,) 5.
11. Working Capital Working capital limit of Rs. Has been assessed as
Requirement per the Projected turnover method (Nayak Committee
method) as per the workings as on annexure-II.
12. Adverse remarks
unattended in last
Inspection & audit report,
if any.
13. Whether borrower/
promoters figure as
defaulters in CIBIL report
for individuals.
14. Details of Associate
concerns. Any NPA’s
15. Terms & conditions
i) Primary Security Hypothecation of plant & machinery purchased out of
bank finance.
Hypothecation of all kinds of Stocks & receivables.
( cover period for receivables ----- days)
ii) Collateral Security
(not applicable if
sanctioned under
CGTFSI)
iii) Guarantee Personal guarantee of Sri.
(Indicate Net worth of Guarantors with date of
compilation of opinion reports)
iv) Margins WC TL
v) Documents As per SME documentation
vi) Submission of Stock To be submitted annually. Submit once in the last
Statements quarter of the year.
vii) Validity WC loan is valid for 3 years, but is subject to annual
review.
viii) Insurance Stocks/Equipment to be insured for full market value for
all possible risks with bank clause.
ix) Inspection Quarterly/Half yearly.
x) Repayment
xi)Rate of interest -------% above/below SBAR, effective rate;
xii) Upfront
fees/Processing Charges
xiii) Charges with ROC
(If applicable)
16. Recommendations
Recommended for sanction of Working Capital limit of Rs.
Term loan of Rs.
Total limit --------------
On the above terms and conditions.
Signature Appraised & Assessed by Sanctioned by
Name
Designation
Date
Enclosure:
Applicant’s application & others
Controlled by
Signature
Name
Designation, Date
Annexure-I
SCORING MODEL - SME CREDIT CARD
NAME OF THE UNIT:-
Sr.No. And Parameters Max Marks Marks scored Criteria Marks
18-30 3
1. Age 3 31-45 2
46 & above 1
Own(NM) 3
2. Owning House 3 Own(M) 2
Not owning 0
Technical 5
Professional/PG 4
3. Academic Qualification 5
Graduates 3
Less than grad. 2
Last 5 years 5
10. Continuous Profits 5 Last 3 years 3
Last year 1
Last 5 years 5
11. Sales show rising trend 5 Last 3 years 3
Last year 1
Tie up arrngt. 3
12. Marketing 3 in operation Ancillary 2
Others 1
Less than 1 5
1 to 2 4
13. TOL/TNW 5
2 to 4 3
More than 4 0
Means of finance
Own funds
Borrowings from
friends and
relatives
Bank finance
others
Total means of
finance
Debt /Equity-
Average D.S.C.R-
Phone/Cell No.
5.Nature of activity
6. Date of Last
Sanction/review
7. IRAC Position as on
8. Present Position of Facility Limit DP O/S Irregularity if
Accounts as on date of any
review. CC
(Rs. In lakhs) TL
LC/BG
Total indebtedness
9. Conduct of WC a/c Annual Turn over estimated Rs.
(Rs. In lakhs) Annual Credit Summations in the account Rs.
(Atleast 50% should be routed in the account, other
wise sanctioning authority has to take a view on
continuation of facility)
Value of the account: Rs.
(Interest/Exchange/commission Booked)
Any Cross selling Products Booked :
(Give the name of the product booked)
10.a) Whether earlier
sanctioned terms complied
with?
b) Comments on non-
achievement of estimated
sales/profit.
c)No.of times the account
was irregular last year and
reasons.
11.Comments
(from risk angle)
(On other associates,
Competition, quality of
products, I&A comments,
CIBIL report for individuals
etc., and other relevant to
Risks. Bullet points only)
11. Recommendations
The Conduct of WC loan and Term loan has been reviewed and found satisfactory.
Recommended for continuation of Working Capital limit of Rs.
On the above terms and conditions as already set out in the original sanction dated—
(mention the date)
Appraised by Approved by
Signature
Name
Designation
Date
1 Application Application
Bio Data form / Feed Back form
DD for Processing fee / Advocate fee / Valuation fee
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