REVISED LOAN SCHEME OF OUR BANKS:
MORGAGE LOAN AGAINST PROPERTY
This scheme provides loan facility against mortgage of property at low rate of interest. The scheme is for people engaged in trade, commerce & business and also professionals & self employed, Proprietorship Firm, Partnership Firm, Companies and Individuals with high net worth including salaried people and staff members.
- Purpose:
| a) To meet the credit needs of trade, commercial activity, other general business, Profession as also for their bonafide requirements;
b) For Purchase of Equipment’s, and machinery etc. c) To meet marriage or medical or educational expenses of family members including near relatives; d) To pay Debt or any other Dues including Pay advance Tax etc. e) To undertake repairs / renovation / extension to the residence / commercial property; d) Purchase of 2/4 wheeler vehicles, consumer durables; e) To purchase / construct house / flat, purchase of plot; g) Repayment of existing loans from other Banks / Financial Institution. |
- Eligibility
Individuals, (it may include co-borrower) who are-
- Salaried Person, Staffs
- Professionals
- Businessman/Others who are income tax payee.
- Others – Trust, firm including partnership firm, group, association of persons, Pvt./Ltd. company.
- Net monthly income for salaried persons is not less than Rs. 5000/- p.m. or net annual income is not less than Rs. 60,000/- in case of self employed and others.
- Age Limit:
As per our loan Policy. General information for age is given below
- Quantum of Advance: Minimum Maximum
Individuals/ Proprietorship Firm Rs. 1.00 Lac As per Bank Exposure.
Partnership Firm/Company change from time to time
- Calculation of Quantum of Loan:
The sanctioned Loan limit is to be related to the value of security and repayment capacity of borrower, subject to:
- Salaried Employees:
a). 48 times of monthly net emoluments ( take home salary) OR
b). 4 times of net annual income with other rental income from property etc. Based on Income Tax returns (Average of last 2/3 years.)
- ii) Self-employed/ professionals/Individuals engaged in trade/ commerce / business:
Four times of their net annual income based on Income Tax returns (Average of last 2/3 years)
iii). Proprietorship/Partnership Firms/Company:
Four times of cash accruals (i.e. PAT + Depreciation) as per their Audited Balance Sheet/P & L Account (Average of Last 2/3 years
- Margin: i) 25% to 40% of Average of DLC + Market Value of property.
- Interest Rate
As per interest rates prevailing from time to time, In case of Loan limit interest would be charged on monthly basis.
- Security:
Equitable mortgage of legally acceptable title documents of non-encumbered residential house/flat/Urban property/Commercial/ Industrial Property in the name of borrower /co-borrower which is either self occupied or vacant or let out which is not mortgaged to any institution/bank for any purpose. The mortgage Loan may also be granted against the security of third person property means other than borrower /co-borrower’s property. In such case the third person shall be mortgagor guarantor. Agricultural land is NOT accepted as security for this facility
The value of the property shall be got assessed form the approved valuer of the Bank.
- Personal Guarantee
Besides primary security as detailed above Third party personal guarantee of two persons having good credentials and adequate net worth shall required to be furnished for the security of the loan.
- Repayment Period
Maximum of 10 years (120 months) to be recovered in monthly instalments.
- Processing Fees
Term Loan repayable in monthly/half yearly instalment as per rates/charges prevailing from time to time, say it is 0.5% of the loan amount.
Disbursement of Loan
Term Loan: In one & two instalments as per applicant’s/ borrowers need.
MORGAGE OVERDRAFT LIMIT AGAINST PROPERTY
This scheme provides overdraft facility against mortgage of property at low rate of interest. The scheme is for people engaged in trade, commerce & business and also professionals & self employed, Proprietorship Firm, Partnership Firm, Companies and Individuals with high net worth .
- Eligibility
Individuals, (it may include co-borrower) who are-
- Salaried Person
- Professionals
- Businessman/Others who are income tax payee.
- Others – Trust, firm including partnership firm, group, association of persons, Pvt./Ltd. Company
- Net monthly income for salaried persons is not less than Rs. 5000/- p.m. or net annual income is not less than Rs. 60,000/- in case of self employed and others.
- Quantum of Advance: Minimum Maximum
Individuals/ Proprietorship Firm Rs. 1.00 Lac As per Bank Exposure.
Partnership Firm/Company change from time to time
- Calculation of Quantum of Loan:
The sanctioned Loan limit is to be related to the value of security and repayment capacity of borrower, subject to:
- Salaried Employees:
a). 48 times of monthly net emoluments ( take home salary) OR
b). 4 times of net annual income with other rental income from property etc. Based on Income Tax returns (Average of last 2/3 years.)
- ii) Self-employed/ professionals/Individuals engaged in trade/ commerce / business:
Four times of their net annual income based on Income Tax returns (Average of last 2/3 years)
iii). Proprietorship/Partnership Firms/Company:
Four times of cash accruals (i.e. PAT + Depreciation) as per their Audited Balance Sheet/P & L Account (Average of Last 2/3 years
- Margin:
25% of DLC Value of property.
25% to 40% of Average of DLC + Market Value of proper
- Interest Rate
As per interest rates prevailing from time to time, In case of O.D. limit interest would be charged on monthly basis as charged/ calculated on CC/Hyp accounts.
- Security
Equitable mortgage of legally acceptable title documents of non-encumbered residential house/flat/Urban property/Commercial/ Industrial Property in the name of borrower /co-borrower which is either self occupied or vacant or let out which is not mortgaged to any institution/bank for any purpose. The mortgage Loan may also be granted against the security of third person property means other than borrower /co-borrower’s property. In such case the third person shall be mortgagor guarantor. Agricultural land is NOT accepted as security for this facility.
- Personal Guarantee
Besides primary security as detailed above Third party personal guarantee of two persons having good credentials and adequate net worth shall require to be furnished for the security of the loan.
- Repayment Period
O.D. Limit: It would be reduced on yearly basis so that O.D. Limit under mortgage loan scheme is finally paid with last day of repayment. It should be renew every three years of sanction.
In case O.D./C.C. Limit is not to be reduced yearly than it requires renewal every year.
- Processing Fees
In case of O.D. Limit, without monthly/half yearly reduction/repayment & renewal yearly would require paying processing fee every year say @ 0.50% as applicable
Other general terms and conditions of the Bank including insurance coverage of property shall also be made applicable.
WORKING CAPITAL (C.C.) LIMIT
This scheme provides working capital Hypothecation limit facility against Hypothecation of stock at low rate of interest. The scheme is for people engaged in trade, commerce & business and also professionals & self-employed, Proprietorship Firm, Partnership Firm, Companies and Individuals with high net worth.
- Eligibility
- Businessman/Others who are income tax payee.
- Professionals
- Others – Trust, firm including partnership firm, group, association of persons, Pvt./Ltd. Company.
- Quantum of Advance: Minimum Maximum
Individuals/ Proprietorship Firm Rs. 1.00 Lac As per Bank Exposure.
change from time to time
- Calculation of Quantum of Loan:
The sanctioned limit is to be related to the value of security and repayment capacity of borrower, subject to:
i). 4 times of net annual income with other rental income from property etc. Based on Income Tax returns (Average of last 2/3 years.)
- ii) Self-employed/ professionals/Individuals engaged in trade/ commerce / business:
Four times of their net annual income based on Income Tax returns (Average of last 2/3 years)
iii). Proprietorship/Partnership Firms/Company:
Four times of cash accruals (i.e. PAT + Depreciation) as per their Audited Balance Sheet/P & L Account (Average of Last 2/3 years
- Margin:
25% to 40% of Average of DLC + Market Value of proper. + 25% of Hypothecation of Stocks
- Interest Rate
As per interest rates prevailing from time to time, interest would be charged on monthly basis.
- Personal Guarantee
Besides primary security as detailed above Third party personal guarantee of two persons having good credentials and adequate net worth shall required to be furnished for the security of the loan.
- Repayment Period
C.C Limit: it requires renewal/review every year. Review only in case where financial account is not ready for renewal the limit.
- Processing Fees
- a) Renewal yearly would require paying processing fee every year say @ 0.50% as applicable
BUSINESS LOAN/ C.C. LIMIT :
This scheme provides working capital Hypothecation limit/ Loan facility against Hypothecation of stock at low rate of interest. The scheme is for people engaged in small trade, business and also professionals & self-employed, Proprietorship Firm, Partnership Firm and Individuals with small net worth. Businessman/Others who are income tax payee.
- Margin:
25% to 40% of Average of value of Stocks
- Quantum of Advance: Minimum Maximum
Individuals/ Proprietorship Firm, Rs. 0.25 Lac Rs. 1.00 Lac.
Partnership Firms
- Interest Rate
As per interest rates prevailing from time to time. Interest would be charged on monthly basis
- Personal Guarantee
Besides primary security of Hypo. Of Stock, Third party personal guarantee of two persons having good credentials and adequate net worth shall require to be furnished for the security of the loan & Limit.
- Repayment Period
Limit: 12 months and it should be requires renewal every year.
In case of Loan: 60 monthly Instalments with interest.
- Processing Fees
- a) Term Loan & C.C. Limit repayable it is 0.5% of the loan/limit amount.
HOUSING LOAN:
- Eligible Category of Finance
Individual (Borrower and Co-borrowers) – Salaried person/self-employed person in business or profession/Association of Persons. - Age Limit
Maximum age limit 50 years. If age is above 50 years, then co-borrower be insisted upon. - Purpose:
i). Purchase of Land.
ii) Construction/Purchase of house/flats by individuals.- Reimbursement of Expenses:
- Reimbursement of expenses already incurred for Purchase of House / Construction recently done / Flats constructed / purchased recently (within 24 months) from own sources can be allowed to good customers on selective basis.
- In case of purchase of ready House/Flat, reimbursement can be allowed for the total expenses incurred (Registered Value) including cost of plot/land.
- Repair, alternation and additions and Interior furnishing (New House/Flat)to houses/flats by individuals.
- Maximum Limit of Assistance/Finance
- a) Maximum up to Rs.70 Lac (Tier II UCBs)
*Housing Loan sanctioned above Rs. 25 Lac shall be out of Advances to Priority Sector
Margin
- 15% of the cost of purchase of house or Average value of DLC& Market value whichever is less (including registry charges)
- 20% of estimated cost of construction
- 40% of cost of purchase of land
- 10% of the conversion and regularization charges paid to Govt. Authority to get registered lease deed/patta.
- 50% of the wooden work.
- 25% on total cost for reimbursement
- b) 48 times of monthly income or 4 times of yearly income. In genuine cases loan limit up to 5 times of annual income can be considered.
- c) The maximum loan should not exceed 15% of the capital fund in case of individuals and 25% of the capital funds for group of borrower. The capital fund for the purpose shall include both Tier I and Tier II capital.
- d) The Maximum Loan for Repair, alternation and additions (for existing house) and Interior Furnishing (New House/Flat) to houses/flats by individuals is Rs. 5.00 Lac.
- e) For reimbursement of expenses House/flat should have been constructed / purchased recently ( not prior to 24 months)
5. Disbursement
Disbursement of the loan will be made as per guidelines suggested as below:
- Execution of loan documents & obtaining of original title documents :
Disbursement of sanctioned House Loan would be made only after execution of loan documents and obtaining of original title documents of land/property proposed to be mortgaged to the bank, as mentioned in sanction letter & PDC’s and Insurance policy etc.
- b) The sanctioned loan may be released in instalments as detailed below:
a). If house loan is sanctioned only for ground floor, disbursement should be made as under:
- 1st Instalment: 25% disbursement of sanctioned loan at the time of construction reaches to plinth level.
- 2nd Instalment : 25% of sanctioned at the time of laying of roof, after shuttering is completed and verifying that iron for laying of roof is lying at the site.
- 3rd Instalment: Next 25% of sanctioned loan after completion of plaster.
- 4th & Last Instalment: Last 25% of sanctioned loan at the time of completion of
- flooring wood work of doors etc. in progress
- If loan is sanctioned against land and construction of house for ground floor:
- Disbursement of loan against land: It may be released in one instalment only after obtaining registered title documents of property as mentioned in the proposal/sanction letter, verification of payments, PDC’s Insurance policy etc.
- Loan against Construction of Building: It may be disbursed in four instalments as mentioned above para (I) (a to d).
- If loan is sanctioned against land and also for construction of ground and first floor :
- Disbursement of Loan against land : It may be released in one instalment only after obtaining registered title documents of property as mentioned in the proposal/sanction letter, verification of payments, PDC’s & Insurance Policy etc.
- Disbursement of Loan against Construction :
- 1st Instalment: 15% of sanctioned loan at the time of construction reaches to plinth level.
- 2nd Instalment : Next 20% of sanctioned at the time of laying of roof of first floor after shuttering is completed and after verifying that Iron for laying of roof is lying at site.
- 3rd Instalment: Next 25% of sanctioned loan at the time of laying of roof of second floor and after verifying that steel is lying at site for laying of roof of second floor.
- 4th Instalment: Next 20% of sanctioned loan after completion of plaster of both floor’s construction.
- 5th & Last Instalment: Last 20% of sanctioned loan at the time of completion of floors and wood work of doors etc. in progress.
Note:
- In case construction progress is already in advance stage i.e. roof has already been laid or finishing work in progress then after recording of these facts on file, 1st & 2nd Instalments of sanctioned loan may be released simultaneously at one time.
- Site Inspection will be got carried out by the Branch Manager himself or second officer of the Branch. However, 1st and last site inspection should be got carried out by the Branch Manager himself. Branch Managers will strictly follow the procedure of disbursement of House Loan in instalments as above, after physical inspection of site and reporting of the progress of the construction on file.
6. Interest Rate
Interest rate on floating basis is charged on reducing method on monthly basis at the rate prevailing time to time as per Bank’s Policy. On default on EMI panel interest may be charged at prevailing rate time to time as per Bank’s Policy. The prepayment/advance payment may be accepted only after prior permission/approval of the bank for which bank shall have right to make good of the financial loss by way of charging pre-payment premium at the rate as may be decided from time to time by the Bank.
7. Security
Primary/Main Security
By mortgage of residential plot/house/flat/immovable property belonging to borrower and co-borrower.
Note : Legal opinion & non encumbrance certificate shall be obtained from bank’s panel advocate on acceptance of title documents of property
8. Personal Guarantee
- Upto Rs. 25 Lac personal guarantee of one person having adequate net worth shall be obtained.
- Above Rs. 25 Lac personal guarantee of two persons having adequate net worth shall be obtained.
9. Repayment Period
- a) The housing loan will be repayable with in maximum period of 20 years including moratorium period or repayment holiday.
- b) The normal policy is that moratorium period is six months from the date of first disbursement or after two months of last disbursement whichever is earlier is allowed. Bank will decide the moratorium period depending upon the individual case, but it will not be more than 18 months from the date of construction. Repayment of the loan shall be done as follow
- On part disbursement, applicant to pay Pre-EMI Interest (i.e. interest on the amount disbursed) until Final Disbursement.
- On Full disbursement, applicant has to pay EMI (Equated Monthly Instalment) combining both interest and principal.
10. Fees
The Processing and Administrative Fees shall be applicable as per the Bank’s norms specified time to time (as applicable), which will be : 0.5% of the Loan amount subject to minimum of Rs. 500/-.
- Top-up Loan
Existing Individual Home Loan borrowers having satisfactory conduct of account for last 2 years are eligible for Top-up Loan.
- Borrowers should have satisfactory repayment history of minimum 24 months, after completion of moratorium period. (Firms, Corporates not included).)
- Valid and enforceable Mortgage should be available in the Home Loan account
12. Other general terms and conditions of the Bank including Insurance Coverage of Property shall also be made applicable
Sanction & Disbursement of House Loan
a) Housing Loan for Building Construction
- A copy of approved/sanctioned plan issued by the competent authority in the name of a person applying for such loan must be obtained along with the application.
- An affidavit-cum-undertaking must be obtained from the person applying for such credit facility that he shall not violate the sanctioned plan, construction shall be made strictly as per the sanctioned plan & shall furnish completion certificate within 3 months of completion of construction.
- An architect approved by the Bank shall certify at various stages of construction of building that the construction is strictly as per sanctioned plan and shall also certify at a particular point of time that completion of construction/building is as per site plan approved by the competent authority. In case plot size is more than 500 sq. mtrs. Then a certificate of completion of construction issued by the competent authority/local authority shall have to be obtained by the applicant and which shall be further certified by the approved chartered architect/engineer of the Bank.
12. Other general terms and conditions of the Bank including Insurance Coverage of Property shall also be made applicable
Sanction & Disbursement of House Loan
a) Housing Loan for Building Construction
- A copy of approved/sanctioned plan issued by the competent authority in the name of a person applying for such loan must be obtained along with the application.
- An affidavit-cum-undertaking must be obtained from the person applying for such credit facility that he shall not violate the sanctioned plan, construction shall be made strictly as per the sanctioned plan & shall furnish completion certificate within 3 months of completion of construction.
- An architect approved by the Bank shall certify at various stages of construction of building that the construction is strictly as per sanctioned plan and shall also certify at a particular point of time that completion of construction/building is as per site plan approved by the competent authority. In case plot size is more than 500 sq. mtrs. Then a certificate of completion of construction issued by the competent authority/local authority shall have to be obtained by the applicant and which shall be further certified by the approved chartered architect/engineer of the Bank.
b) Housing Loan for Purchase of Constructed Property / Built up Property
- An Affidavit/undertaking shall be furnished by the applicant that the build up property has been constructed as per the sanctioned plan and/or building bye-laws along with completion certificate.
- An Architect/approved chartered valuer shall certify before disbursement of the loan that the build up property is strictly as per sanctioned plan and/or building bye laws.
- No loan would be granted in respect of those properties which fall in the category of unauthorized colonies unless and until the same has been regularized and developed by the competent authority.
- No loan would be granted in respect of properties meant for residential use but which the applicant intends to use for commercial purposes and declaring so while applying for the loan.
VEHICLE LOAN
AGE LIMIT
Individual having age between 21 years to 60 years. If age is above 60 years, then co-borrower is insisted upon.
PURPOSES:
- Purchase of brand new two wheeler/four wheeler vehicle for personal use.
- Purchase of brand new three wheeler/four wheeler vehicle for commercial use, such as Auto-Riksha, Loading taxi, Taxi car, Cab, Bus, Truck, Tractor etc.
- For purchase of personal vehicles powered by non-conventional energy, such as electronic / battery operated small vehicles for urban transport provided they are registered with RTO. Such vehicles not registered with RTO can be financed subject to specified reduced limits of advance preferably with collateral security.
- Vehicle loan will be granted for Purchase of Second hand four wheeler (True value not more than three year old) vehicles.
WHO ARE ELIGIBLE:
- Share Holder of The Bank.
- Salaried employees, Professional & Self-employed Individuals. People engaged in trade / commerce / business, Directors of Companies,
- Staff Members of our Bank.
- Minimum two years of service for salaried employees .
- HUF not permitted.
Quantum of Loan
- Maximum limits for finance :
- For vehicles run on non-conventional energy and not required to be registered with RTO.
Two wheelers: Rs.60,000/- or 80% cost of the vehicle whichever is less - 75% to 85% of the cost of vehicle including registration & Insurance charges
- For vehicles run on non-conventional energy and not required to be registered with RTO.
MARGIN:
Margin of 15% to 25% for new vehicle & 40% to 50% for second hand vehicles (Not more than 3 year old)
The Loans are subject to:-
1. 30 times of gross monthly emoluments in case of salaried employees or 2.5 times of gross average annual income
2. Net take home pay should be at least 40% of income (net of proposed EMI.
3. 2.5 times average annual cash accrual (i.e. PAT + Dep.) as per firms/ companies last 2 years audited balance sheet, P&L A/c
DISBURSEMENT
After execution of loan documents and obtaining request from the borrower, sanctioned loan amount plus margin money, if any, will be disbursed directly to the dealer/seller. A cheque/DD of the disbursable amount will be issued in the dealer’s name with forwarding letter stating that the hypothecation of the vehicle in favour of the bank should be endorsed on the registration of the vehicle to be issued from R.T.O. Similarly, an endorsement of hypothecation will be made on the Insurance Policy. While releasing the sanctioned loan, Branch Manager will ascertain that the borrower has paid some contribution to the dealer/seller as advance money and receipt of the same is furnished or his contribution will be got deposited with the bank and a DD/cheque of the total payment of sanctioned loan so as to ensure that full amount of the vehicle is paid to the dealer/seller.
. Branch Manager will take following documents from the borrower:-
- Photocopy of the invoice to be verified by the Branch Manager with original & seal of the bank to be affixed on original specifying hypothecation in favour of the bank.
- Receipts of the payments made by the party and the bank to the dealer.
- Photocopy of the Registration Certificate of the vehicle issued by the RTO, verifying an endorsement in favour of the Bank.
- Photocopy of the Insurance Policy/Cover Note after verifying an endorsement in favour of the Bank.
- The chassis no. /engine no., mentioned on the Registration Certificate be verified from the vehicle at the time of carrying-out the physical inspection of the vehicle.
INTEREST RATE
As applicable from time to time.
REPAYMENT OF LOAN:
1. For Individual & Others Four wheelers- Maximum 7 years
2. For Individual Two Wheelers: Maximum 3 to 5 years.
3. For Second hand Four wheelers: Maximum 3 years
PDCs must be obtained for monthly instalments.
SECURITY
Hypothecation of the vehicles i.e. car/jeep/motorcycle/ Auto-Riksha, Loading taxi, Taxi car, Cab, Bus, Truck, Tractor etc. which is being financed by the bank. An accidental/LIC Policy of the borrower can also be insisted upon.
ADDITIONAL SECURITY
Four wheeler Vehicle loan Above Rs. 6.00 Lac an Additional security of immovable property will be taken.
If loan to be considered for the vehicle to be used for taxi purposes Such as Auto-Riksha, Loading taxi, Taxi car, Cab, Bus, Truck, Tractor etc. then an additional security of immovable property will be taken. Tax paid receipt, permit copy and fitness certificate to be obtained for Bank record.
GUARANTEE
- Vehicle Loan upto Rs. one Lac no Guarantee to be obtained but Co-borrower must be insisted upon.
- Vehicle loan over Rs. one Lac third party personal guarantee of one person having adequate net worth will be insisted upon.
- Vehicle Loan for non-conventional energy and not required to be registered with RTO, third party personal guarantee of one person having adequate net worth will be taken, irrespective of loan amount.
Processing/handling Charges:
- For Two wheeler loan: 50% of loan amount. Subject to deviations allowed for the schemes by the Board.
- Four Wheeler Loan: 50% of Loan amount.
ADVANCE FOR PURCHASE/CONSTRUCTION OF COMMERCIAL BUILDING/SHOP APPRAISAL
Purpose/Object
The main object of the scheme to provide financial assistance to meet the various needs/requirement of the individuals/self-employed persons or Professionals/Business persons for purchase/ construction of commercial building/shop loan.
2. Eligibility
- a) Individuals (it may include co-borrower) who are –
- Self employed persons
- Professionals
- Businessman
- b) Other – Trust, Firm including partnership firm, Group, Association of persons & Pvt./Ltd. Company.
3. Age Limit
Maximum age limit 60 years. If age is above 60 years than co-borrower be insisted upon.
4. Loan Amount
Admissibility of loan be assessed based on the following –
- 48 times of monthly income or 4 times of yearly income. OR
- On the basis of project report. OR
- Maximum amount up to exposure limit
- 25% of registered value *(including registry expenses).
Relaxation
- In genuine cases loan limit up to 5 times of annual income may be considered.
- Relaxation in margin up to 5% be considered (i.e. up 80% of registered value including registry charges).
5. Security
Equitable mortgage of legally acceptable title documents of no encumbered shop/commercial building/Urban property which is either self occupied or vacant, which is not mortgaged to any institution/bank for any purpose. In case of shop being purchased from builder in a commercial building/trade centre, the following documents would be required:
- Original stamped agreement executed with the builder on Rs. 500/- stamp paper.
- Receipts of the payment made to the builder.
- Certified copy of permission letter granted by the competent authority to the builder.
- Certified copy of approved plan of building/commercial complex.
- Any other document, if required.
6. Disbursement of Loan
Term Loan : After execution of loan documents & furnishing of title documents of the property, the sanctioned loan amount of loan can be disbursed in one or two instalments as per applicant’s/borrowers need.
7. Interest Rate
As per interest rates prevailing from time to time, In case O.D. limit, interest would be charged on monthly basis as charged/ calculated on CC/Hyp. Accounts.
8. Personal Guarantee
Besides primary security as detailed above: Third party personal guarantee of two persons having good credentials and adequate net worth shall require to be furnished for the security of the loan.
9. Repayment Period
Term Loan : Maximum of 10 years (120 months) to be recovered in monthly instalments through PDCs.
10. Processing Fees
As per rates/charges prevailing from time to time. Normally it is 0.50% of loan amount
UMUCB COMPUTER/CONSUMER LOAN SCHEME
| UMUCB COMPUTER/CONSUMER LOAN SCHEME
Terms and Conditions apply: Loan at the sole discretion of The Udaipur Mahila Urban Cooperative Bank Ltd. All disputes arising out of this scheme shall be decided by the Courts under Udaipur jurisdiction. |
| UMUCB HOLIDAY LOAN SCHEME | ||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
|
||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||||
EDUCATION LOAN SCHEME – UMUCB EDUCATION
| Purpose of Loan | For pursuing higher studies, in India & Abroad |
| Eligibility | Student should be an Indian National having secured admission to Professional / Technical courses through entrance test / selection process. Age: 16-35 years.
The Mother / Guardian shall be the Principal Borrower and Major Student shall be the Co-borrower. |
| Nature of Facility | Term Loan |
| Calculation of Eligible Loan Amount | For payment of Tuition fees, Hostel fees, caution deposit, refundable deposit, admission, examination, library, laboratory, cost of books, equipments, uniforms, computer, if necessary.
One-way air passage in case of studies abroad. Reimbursement of admission fees, cost of books, airfare etc., if already incurred, within 2 month for studies in India and 3 months for abroad. |
| Maximum loan amount | Rs.20 Lac for studies in India. | |
| Rs.25 Lac for studies Abroad. |
| Margin | Loan Amount up to Rs. 2 Lac: NIL
Loan amount above Rs.2 Lac – In India 5% Abroad 15% (Scholarship may be included in margin.) |
| Rate of Interest (Irrespective of Amount of Loan and Place of study i.e. India or Abroad) |
Normal Student | IIT/ IIM/ PMT Students | ||||
| Female | As per Board Decision from time to time | As per Board Decision from time to time | ||||
| Disbursement | Payment directly to college / hostel / mess / airlines etc. In appropriate cases disbursement to be made to borrowers subject to satisfactory evidence. Original receipts to be submitted. | |||||
| Repayment | Repayment to commence 12 months after completion of course / studies or 6 months after securing job, whichever is earlier. Maximum period of repayment of loan shall be 5 to 7 years. Repayment on EMI basis. |
| Security
Important Note: |
|
|||||||
|
|
||||||||
| There should be LIC Policy of Loan amount in the name of the student in all loan accounts. | ||||||||
Terms & Conditions apply: Loan at the sole discretion of The Udaipur Mahila Urban Cooperative Bank Ltd.
All disputes arising out of this scheme shall be decided by the Courts under Udaipur jurisdiction
UMUCB ROOF TOP SOLAR PLANT LOAN SCHEME
(;w,e;wlhch v{k; lkSj mtkZ _.k ;kstuk )
Introduction:
Solar energy is free and endless source of Energy. In order o make available easy finance at affordable rate to individual woman,/ Institution in which woman is main participate a scheme in the name of “UMUCB Roof Top Solar Plant Loan Scheme” has been launched. This scheme is available for both on or off grid connected SPV power plant.
(On grid connected SPV power plant means where net metering facility is available.)
fxzM dusDVsM :Q VkWi iz.kkyh esa mtkZ HkaMkj.k ds fy;s cSVjh dh vko”;Drk ugh gksrh gS] cfYd xeZ mtys fnu ds nkSjku mRikfnr lkSj mtkZ dk vko”;Drkuqlkj miHkksx fd;k tkrk gS ,oa ”ks’k lkSj mtkZ fMLdkWe fxzM es LFkkukUrj.k dj nh tkrh gSaA fxzM dusDVsM :Q VkWi iz.kkyh esa 30 izfr”kr vuqnku miyC/k jgsxkA
vkWQ fxzM :Q VkWi iz.kkyh esa mtkZ HkaMkj.k ds fy;s cSVjh dh vko”;Drk gksrh gSA cSad }kjk mDr nksuks iz.kkfy;ksa gsrq _.k miyC/k djk;k tkrk gSA vkWQ fxzM dusDVsM :Q VkWi iz.kkyh esa vuqnku miyC/k ugh gksxkA
Purpose:
Loan for installation of Solar Photovoltaic System (SPV) in house and Institutions for:-
- Grid connected SPV power plant
- Off Grid connected Power plant.
Eligibility:
Residential:– Individual having own residential house.
Institutional:- School, Health Institutions including Medical Collages & Hospitals, Educational Institutions etc.
The applicant should be residing in Bank area of operation. The property on which the solar plant is proposed to be installed should be in the name of applicant. However, in case the property stands in the name of spouse/ parents/children may also be considered provided the owner of the property has no objection and has given written consent for establishing the SVP power Plant.
Quantum of Advance: 80% of the cost of project or Rs. 10.00 Lac maximum.
Income Criteria:
Salaried Employees: 48 times of monthly income or 4 times of yearly income. Income verify from three year ITR.
Institutions: Four times of Cash-accruals (i.e. PAT+ Depreciation) as per their Audited Balance Sheet/ P&L Account (Average of Last 2/3 years) Income verify from three years ITR.
Margin: 20% of the cost of plant.
Security: Upto loan of Rs. 300000/- , Hypothecation of plant created out of finance.
Above Rs. 300000/- equitable Mortgage of the property along with Hypothecation of Plant Or any cash securities
Interest rate: As per Board decision from time to time.
Repayment Period: 60 monthly Instalments including 3 month moratorium period.
Guarantee: Upto Rs. 300000/- two personal guarantee of two person having adequate net worth will be insisted upon.
Above Rs. 300000/- Only one third party guarantee require.
UMUCB PERSONAL LOAN
Eligibilty: Advances granted to salaried employees Who entered into arrangements with the employee and employer for the recovery of the loans through deductions out of salary.
Those Employers who have not given any undertaking than Borrower should give PDC (Post Dated Cheques) of their Banks where their salary deposited.
Quantum of loan: Rs. 2.00 Lac If borrower Submitted salary undertaking from their Employer.
Rs. 1.00 Lac to others who give PDC (Post Dated Cheques) of their Banks where their salary deposited.
Period of Loan: 36 months
Interest Rate : As decided from time to time by Bank Board.
(a) Broad Guidelines BANK GUARANTEE
In view of the risks involved in the business of issuance of guarantees, the Urban Co-operative Banks should extend guarantees within restricted limits so that their financial position is not impaired. Bank will follow certain broad guidelines in respect of their guarantee business as indicated in the following paragraphs.
- Purpose: As a general rule, bank will provide only financial guarantees and not performance guarantees.
- Maturity : It would be desirable for the Bank to confine their guarantees to relatively short-term maturities. Guarantees will not be issued for periods exceeding ten years in any case.
- Volume : The total volume of guarantee obligations outstanding at any time will not exceed 10 per cent of the total owned resources of the bank comprising paid up capital, reserves and deposits. Within the overall ceiling, proportion of unsecured guarantees outstanding at any time will be limited to an amount equivalent to 25% of the owned funds (paid up capital + reserves) of the bank or 25% of the total amount of guarantees, whichever is less.
- Secured Guarantees: Banks will preferably issue secured guarantees. A secured guarantee means a guarantee made on the security of assets (including cash margin), the market value of which will not at any time be less than the amount of the contingent liability on the guarantee, or a guarantee fully covered by counter guarantee/s of the Central Government, State Governments, public sector financial institutions and/or insurance companies. Banks should generally provide deferred payment guarantees backed by adequate tangible securities or by counter guarantees of the Central or the State Government or public sector financial institutions or of insurance companies and other banks.
- Unsecured Guarantees : Bank will avoid undue concentration of unsecured guarantee commitments to particular groups of customers and/or trades. Banks’ Board of Directors will fix suitable proportions for issuance of unsecured guarantees on behalf of any individual constituent so that these guarantees do not exceed
8a – (a) reasonable proportion of the total obligations in respect of unsecured guarantees provided by the bank to all such constituents at any time, and (b) reasonable multiple of the shareholdings in the bank.
- f) Deferred Guarantees
- In case Bank intends for issuing deferred payment guarantees in respect of their borrowers for acquisition of capital assets will ensure that the total credit facilities including the proposed deferred payment guarantees do not exceed the prescribed exposure ceilings.
- The proposals for deferred payment guarantees will be examined having regard to the profitability / cash flows of the project to ensure that sufficient surpluses are generated by the borrowing unit to meet the commitments as the Bank has to meet the liability at regular intervals in respect of the instalments due. The criteria generally followed for appraising a term loan proposal for acquisition of capital assets will also be applied while issuing deferred payment guarantees.
- Guarantees in respect of Commodities covered under Selective Credit Controls
Bank will not issue, either to a Court or to Government, or any other person, a guarantee on behalf of or on account of any importers guaranteeing payment of customs duty and/or import duty, or other levies, payable in respect of import of essential commodities without taking, as security for issue of such guarantees, a cash margin equivalent to at least one half of the amount payable under the guarantee. The term “essential commodities” shall mean such commodities as may be specified by the Reserve Bank of India from time to time.
- Safeguards in Issuance of Guarantees
While issuing the financial guarantees, Bank will observe the following safe guards :
- The bank guarantees will be issued in security forms serially numbered to prevent issuance of fake guarantees. ii. Guarantees above a particular cut off point, as decided by the Bank, will be issued under two signatures in triplicate, one copy each for the branch, beneficiary and Head Office. It will be binding on the part of the beneficiary to seek confirmation of the Head Office as well for which a specific stipulation be incorporated in the guarantee itself.
- The guarantees will not normally be allowed to the customers who do not enjoy credit facilities with the bank but only maintain current accounts. If any request is received from such customers, the bank will subject the proposals to thorough scrutiny and satisfy themselves about the genuine need of the customers. The bank will be satisfied that the customers would be in a position to meet the claims under the guarantees, when received, and not approach the bank for credit facility in this regard. For this purpose the bank will enquire into the financial position of the customers, the source of funds from which they would be in a position to meet the liability and prescribe a suitable margin and obtain other security, as necessary. Bank will also call for the detailed financial statements and Wealth-tax / Income-tax returns of the customer to satisfy themselves of their financial status. The observations of the banks in respect of all these points will be recorded in banks’ books.
- Where the customers enjoy credit facilities with other banks, the reasons for their approaching the bank for extending the guarantees will be ascertained and invariably, a reference will be made to their existing bankers with whom they are enjoying credit facilities.
- Bank, when approached to issue guarantees in favour of other banks for grant of credit facilities by another bank, would examine thoroughly the reasons for approaching another bank for grant of credit facilities and satisfy themselves of the need for doing so. This would be recorded in bank’s books.
- When it is considered necessary to issue such guarantees, Bank will ensure that the relative guarantee document, beyond a stipulated amount, will not be signed singly but by two authorised officials jointly after obtaining proper sanction and authority and proper record of such guarantee issued being maintained. The credit proposal will be subjected to usual scrutiny by the lending bank ensuring that the proposals conform to the prescribed norms and guidelines and credit facilities are allowed only if the bank is satisfied about the merits of the proposal and the availability of another bank’s guarantee will not result in a dilution of the standards of evaluation of the proposal and financial discipline in lending.
(j) Payment under Bank Guarantees – Immediate Settlement of Cases
- Probably reluctance on the part of banks to honour their commitment in respect of invoked guarantees stems from their fear of difficulty in realising the amount due from their constituents on account of such guarantees. It is possible that in their anxiety to boost up their profitability, Banks go out of the way to issue bank guarantees on behalf of constituents without subjecting the proposals to proper scrutiny and assessing the capacity and creditworthiness of their constituents to pay the amounts to the banks in case the guarantees are invoked. Dilution of security (i.e., non-obtention of adequate margin) may be another factor responsible for banks not receiving the dues in respect of invoked guarantees from their clients.
- The above aspects may inhibit bank to pay the beneficiaries promptly when guarantees are invoked and they adopt dilatory tactics in respect of invoked guarantees. It is absolutely essential for Bank to appraise the proposals for guarantees also with the same diligence as in the case of fund based limits and obtain adequate cover by way of margin so as to prevent the constituents to develop a tendency of defaulting in payments when invoked guarantees are honoured by the banks.
- The bank guarantee is a commitment made by the issuing bank to make payment to the beneficiary (albeit at the behest of the bank’s constituent). Failure on the part of the bank to honour the claim legitimately made on it projects distorted picture of its functioning.
- In fact some strictures were passed by Courts in the past against banks for not honouring the guarantee commitments promptly. The Supreme Court observation are :
“We are therefore, of the opinion that the correct position of law is that commitment of banks must be honoured free from interference by the courts and it is only in exceptional cases, that is to say, in case of fraud or in case where irretrievable injustice would be done, if bank guarantee is allowed to be encashed, the court should interfere.”
Banks will, therefore, honour bank guarantees issued by them promptly on their invocation as reluctance on their part to honour commitments in respect of invoked guarantees tend to bring the banking system into disre
LOAN AGAINST BANK`S OWN DEPOSITS
Bank can grant advance against its own Term Deposit in the name of:
- borrower either singly or jointly;
- one of the partners of the firm and the advance is made to the said firm;
- The proprietor of a proprietary concern and the advance is made to such a concern; Company, Trust etc. in which proper resolution should be taken and
- A ward where guardian is competent to borrow on behalf of the ward and where the advance is made to the guardian of the ward in such capacity and subject to the declaration that the amount will be utilised for the benefit of the ward.
- Margin : 10% to 15% including Accrued interest of FD
- Loan and Advances against Bank Own Deposits to be sanctioned at branch level. Proposal of Loan of Trust and Company will be sent to Head Office for sanction.
- Advances can be sanctioned against a fixed deposit receipt in the name of a third party subject to
- The nature of relationship between the borrower and the depositor will be disclosed;
- A letter of consent signed by the depositor will also be obtained authorising the bank to hold the receipt as security for the advance and to utilise the amount of deposit on maturity towards liquidation.
- After making the advance, the bank’s lien will be prominently noted on the face of the FDR and duly marked lien in the computer system.
ADVANCES AGAINST SECURITY OF NSC / KVP
- PREAMBLE
Banks have been providing financial assistance to the individuals by way of advance facility against security of NSC/KVP.
- Maximum assistance to be sanctioned at branch level will not exceed Rs. 1.00 Lac per borrower. Proposal exceeding Rs. 1.00 Lac will be sent to HO/CEO for sanction.
- Each advance shall not be lower than Rs. 5,000/-.
- The margin would be 15% to 25% on the present maturity value of completed years.
- Margin for newly purchased NSCs/KVPs – 40%
- These margins will also apply to staff members.
- Re Payment of Loan/Advance against NSC/KVP should be paid within 36 months maximum.
- Processing Charges: Upto one Lac Nil
- Above one lac o.5% of Loan amount subject to Maximum Rs. 500
- APPRAISAL REQUIREMENT
Financial assistance against security of NSC/KVP is considered safe and secure since these are Government Securities and repayment is assured. Thus, the appraisal does not require examining the viability of the proposal or assessing the needs of the borrower. The only aspect that is considered is that the certificates must be genuine and there should be adequate margin to cover the interest liveable during the period till date of encashment.
The National Saving Certificates / KVP have to be marked for lien with the issuing Post Office. The practice of getting the lien marked is an important activity and the branches must ensure that our own employee gets the lien marked from the Post Office. The borrower will not be allowed or given possession of the certificates, to get the lien marked from the Post Office. This may lead to risk of fake certificates being given to the Bank as security.
3. GENERAL PRECAUTIONS REQUIRED
(A) The Branch Manager should take the following precautions while considering loans against NSC.
- a) The borrower seeking the advance / loan should be genuine.
- b) The certificates which are kept as security must be examined and be subject to thorough scrutiny from various angles.
- c) The Bank’s staff must be given the responsibility of getting the lien marked.
- d) The quantum of loan should be within the stipulated limit and in no case margins be reduced.
(B) Grant of loans for acquisition of / investing in small savings instruments including Kisan Vikas Patras :
Grant of loans for acquiring/investing in KVPs does not promote fresh savings and, rather, channelize the existing savings in the form of bank deposits to small savings instruments and thereby defeat the very purpose of such schemes. Banks may therefore ensure that no loans are sanctioned for acquisition of/investing in small savings instruments including Kisan Vikas Patras.
ADVANCES AGAINST LIFE INSURANCE POLICY
The policy should be scrutinised. There are certain policies which cannot be legally assigned. The policy which is operative at least for three years be accepted. A policy already assigned should not be accepted. Age of the insured should have been admitted. The borrower should be advised to produce a letter from the insurer indicating surrender value of the policy. Quantum of loan should not exceed 75% of the surrender value. An absolute assignment in favour of the bank should be obtained in a prescribed form.
Maximum assistance to be sanctioned at branch level will not exceed Rs. 1.00 Lac per borrower. Proposal exceeding Rs. 1.00 Lac will be sent to HO/CEO for sanction
Re Payment of Loan/Advance against LIC Policy should be paid within 36 To 60 months maximum.
General Conditions for all types of Loans & Advances.
AGE LIMIT:
Minimum Age for all types of loan is 21 years. However, the minimum age of co-applicant/s can be 18 years. and Maximum age is 60 years. Above 60 years of age Co-borrower must be insist upon.
Maximum Age:
For Salaried Persons:
Age of the applicant/co-applicant/s (whose income are considering for eligibility) plus repayment period should not be beyond retirement age. However,
- Maximum age that can be considered beyond retirement age but upto 70 years without deviation i.e. the age by which the loan should be fully repaid, subject to availability of sufficient regular continuous source of income for servicing the loan. For the purpose of extending the repayment period upto 70 years following conditions must be satisfied.
Son/ Daughter/ Spouse who is a legal heir and preferably below 50 years of age , with sufficient income for servicing the loan repayment joins as Co-applicant/Guarantor.
b). In case of non-availability of co-applicant/guarantor/liquid security if any the maximum age can be considered up to 70 years without deviation, if the applicant is covered under any pension scheme and 40% of the pension amount is sufficient to pay the EMI.
Others (Self- Employed/Professionals/Agriculturalists:
Age of the applicant/co-applicant/s (Whose income are considering for eligibility) plus repayment period should not exceed -65- years. However,
Maximum age that can be considered up to 70 years without deviation i.e. the age by which the loan should be fully repaid, subject to availability of sufficient regular continuous source of income for servicing the loan, provided:
Son/ Daughter/ Spouse who is a legal heir abd preferably below 50 years of age , with sufficient income for servicing the loan repayment joins as Co-applicant/Guarantor.