PNB Policy

Guideline Bulletin: Product and Credit

July 2011


Guideline Bulletin: Product

and Credit


July 2011

2

Document review and approval

Revision history

Version Author Date Revision

This document has been reviewed by

Reviewer Date reviewed

1

2

3

4

5

This document has been approved by

Subject matter experts

Name Signature Date reviewed

1

2

3

4

5


July 2011

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CONTENTS CONTENTS .....................................................................................................................................................................................................3

1. PRODUCT DESCRIPTION AND APPROVED BORROWERS ................................................................................................................6

2. PRODUCT SPECIFIC PARAMETERS COMMON FOR ALL APPLICANTS: ..........................................................................................7

3 PRODUCTWISE UNDERWRITING PARAMETERS SPECIFIC TO SALARIED APPLICANTS: ...........................................................18 3.1 INCOME CONSIDERED FOR SALARIED APPLICANTS ..................................................................................................................................................... 23

4 UNDERWRITING NORMS FOR SELF EMPLOYED PROFESSIONALS...............................................................................................25

5 UNDERWRITING NORMS FOR SELF EMPLOYED NON PROFESSIONALS......................................................................................31

6 DOCUMENTATION NORMS .................................................................................................................................................................34 6.1 SANCTIONING STAGE .............................................................................................................................................................................................................. 34 6.2 DISBURSEMENT STAGE .......................................................................................................................................................................................................... 41

7 SPECIAL PROGRAMMES FOR LENDING AND REPAYMENT PLANS: .............................................................................................43 7.1 LIQUID INCOME PROGRAMME............................................................................................................................................................................................... 43 7.2 GROSS TURNOVER PROGRAMME (GTP) ........................................................................................................................................................................... 45 7.3 LEASE RENTAL DISCOUNTING (LRD) PROGRAMME ....................................................................................................................................................... 48 7.4 TOP UP LOANS ........................................................................................................................................................................................................................... 52 7.5 STEP-UP REPAYMENT PLAN .................................................................................................................................................................................................. 54 7.6 STEP-DOWN REPAYMENT PLAN ........................................................................................................................................................................................... 55 7.7 TRANCHE EMI – EMI UNDER CONSTRUCTION STAGE ................................................................................................................................................... 56

8 BALANCE TRANSFER .........................................................................................................................................................................57 8.1 PRODUCTS APPLICABLE ......................................................................................................................................................................................................... 57 8.2 APPROVED LENDERS............................................................................................................................................................................................................... 57 8.3 ADDITIONAL DOCUMENTATION REQUIRED FOR BT....................................................................................................................................................... 58

8.3.1 PRE-DISBURSAL DOCUMENTATION............................................................................................................................................................................ 58 8.3.2 POST-DISBURSAL DOCUMENTATION IN BT CASES ............................................................................................................................................... 59

8.4 OTHER PROCESS CHECKS IN BT CASES........................................................................................................................................................................... 59

9 BALANCE TRANSFER PLUS TOP UP.................................................................................................................................................59 9.1 PROCESS TO BE FOLLOWED FOR BT PLUS TOP UP...................................................................................................................................................... 60

10 SELLER BT ...........................................................................................................................................................................................60

11 LOANS TO NON-RESIDENT INDIANS .................................................................................................................................................61 11.1 PRODUCT PARAMETERS AND UNDERWRITING NORMS............................................................................................................................................... 62


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11.1.1 BORROWERS ..................................................................................................................................................................................................................... 62 11.1.2 APPLICABLE PRODUCTS ................................................................................................................................................................................................ 62 11.1.3 PRODUCT SPECIFIC PARAMETERS ............................................................................................................................................................................ 62 11.1.4 UNDERWRITING NORMS................................................................................................................................................................................................. 62 11.1.5 PROCESSING FEE CHEQUE .......................................................................................................................................................................................... 64 11.1.6 POWER OF ATTORNEY ................................................................................................................................................................................................... 65 11.1.7 APPROVED LIST OF COUNTRIES ................................................................................................................................................................................. 65 11.1.8 MODE OF REPAYMENT ................................................................................................................................................................................................... 66 11.1.9 DEDUPLICATION CHECK................................................................................................................................................................................................. 66 11.1.10 CREDIT BUREAU CHECK ............................................................................................................................................................................................ 66

12 LOANS TO NON-INDIVIDUAL ENTITIES – PRODUCT PARAMETERS AND UNDERWRITING NORMS...........................................66 12.1 BORROWERS .............................................................................................................................................................................................................................. 66 12.2 APPLICABLE PRODUCTS ......................................................................................................................................................................................................... 66 12.3 PRODUCT SPECIFIC PARAMETERS ..................................................................................................................................................................................... 67 12.4 UNDERWRITING NORMS ......................................................................................................................................................................................................... 67 12.5 DOCUMENTATION ..................................................................................................................................................................................................................... 67

13 PROPERTY APPRAISAL ......................................................................................................................................................................67 13.1 EMPANELMENT OF PROPERTY APPRAISERS .................................................................................................................................................................. 67 13.2 REQUEST FOR PROPERTY VISIT .......................................................................................................................................................................................... 67 13.3 PROPERTY VISIT BY THE EMPANELLED APPRAISERS .................................................................................................................................................. 68 13.4 VALUATION REPORTING ......................................................................................................................................................................................................... 69 13.5 VISIT BY THE PNBHFL TECHNICAL MANAGER.................................................................................................................................................................. 70

14 TYPES OF PROPERTIES......................................................................................................................................................................70 14.1 ACCEPTABLE PROPERTIES.................................................................................................................................................................................................... 70 14.2 UNACCEPTABLE PROPERTIES .............................................................................................................................................................................................. 70

14.2.1 KUCCHA STRUCTURES................................................................................................................................................................................................... 70 14.2.2 SEMI OR HALF PUKKA STRUCTURES ......................................................................................................................................................................... 71

15 AREA CALCULATION MEASURES .....................................................................................................................................................71 15.1 CARPET AREA ............................................................................................................................................................................................................................ 71 15.2 BUILT UP AREA........................................................................................................................................................................................................................... 71 15.3 SUPER BUILT UP AREA ............................................................................................................................................................................................................ 71 15.4 AREA USED FOR VALUATION ................................................................................................................................................................................................ 71

16 PROPERTY CROSS AUDIT ..................................................................................................................................................................71

17 LEGAL APPRAISAL - GUIDELINES.....................................................................................................................................................72


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17.1 PROPERTY PAPER SUBMISSION .......................................................................................................................................................................................... 72 17.2 PROPERTY TITLE SEARCH ..................................................................................................................................................................................................... 72 17.3 PROPERTY TITLE OPINION ..................................................................................................................................................................................................... 72 17.4 COLLECTION OF PROPERTY DOCUMENTS ....................................................................................................................................................................... 73 17.5 LEGAL MANUAL .......................................................................................................................................................................................................................... 73

18 VERIFICATION - GUIDELINES .............................................................................................................................................................73 18.1 FIELD INVESTIGATION – FI...................................................................................................................................................................................................... 73 18.2 TELEPHONIC INVESTIGATION ............................................................................................................................................................................................... 74 18.3 CREDIT BUREAU REPORT ...................................................................................................................................................................................................... 74

18.3.1 FIELDS TO BE CAPTURED FOR INPUT ....................................................................................................................................................................... 75 18.3.2 INTERPRETATION GUIDELINES FOR CREDIT BUREAU REPORTS..................................................................................................................... 75

18.4 REFERENCE CHECKS .............................................................................................................................................................................................................. 79 18.5 FCU (FRAUD CONTROL UNIT) - AGENCY VERIFICATION............................................................................................................................................... 79

19 PROJECT APPROVAL AND DEVELOPER APPROVAL - GUIDELINES.............................................................................................79 19.1 DEVELOPER APPROVAL GUIDELINES................................................................................................................................................................................. 80

20 ANNEXURE 1 - SANCTION DEVIATION AUTHORITY GRID...............................................................................................................82

21 ANNEXURE 2 - PROPERTY DEVIATION AUTHORITY GRID..............................................................................................................87

22 ANNEXURE 3 – FI OVERRIDE MATRIX ...............................................................................................................................................89

23 ANNEXURE 4 – PROJECT APPROVAL FORMATS ............................................................................................................................96

24 ANNEXURE 5 – OWNERSHIP AND INCOME AGGREGATION GRID .................................................................................................97

25 ANNEXURE 6 – AUTHORITY MATRIX .................................................................................................................................................99

26 ANNEXURE 7 – PERSONAL DISCUSSION FORMAT – SALARIED APPLICANTS ............................................................................99

27 ANNEXURE 8 – PERSONAL DISCUSSION FORMAT – SENP APPLICANTS.....................................................................................99

PD Sheet - SENP.xls

............................................................................................................................................................................................100

28 ANNEXURE 9 – VALUATION REQUEST FORMAT ...........................................................................................................................100

29 ANNEXURE 10 – STAGES OF CONSTRUCTION AND DISBURSEMENT AT EACH STAGE...........................................................101

30 ANNEXURE 11 – FORMAT FOR TECHNICAL APPRAISAL OF PROPERTY....................................................................................104

31 ANNEXURE 12 – FORMAT FOR LAWYERS OPINION REPORT ......................................................................................................104


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Legal Title Opinion Report Format.doc

............................................................................................................................................................................................104

32 ANNEXURE 13 – STEP UP REPAYMENT FACILITY CALCULATOR................................................................................................104

33 ANNEXURE 14 – STEP-DOWN REPAYMENT PLAN CALCULATOR ...............................................................................................104

34 ANNEXURE 15 – CAUTION PROFILES .............................................................................................................................................105

35 ANNEXURE 16 – ELIGIBILITY CALCULATION PACK ......................................................................................................................106

36 ANNEXURE 17 – INTERNAL DE DUPLICATION OVERRIDE GUIDELINES .....................................................................................106

37 ANNEXURE 18 –LIST OF APPROVED GROWTH BRANCHES.........................................................................................................107

38 ANNEXURE 19 –LIST OF INDUSTRIES AND MARGINS...................................................................................................................108

39 GLOSSARY.........................................................................................................................................................................................108

1. PRODUCT DESCRIPTION AND APPROVED BORROWERS

This document details the policy for the products mentioned in the following grid. This grid also mentions the entities that can be funded for each product.

S.

No PRODUCT

RESIDENT SALARIED

INDIVIDUALS

(SAL)

RESIDENT SELF EMPLOYED

PROFESSIONALS

(SEP)

RESIDENT SELF EMPLOYED NON PROFESSIONALS

(SENP)

NON RESIDENT SALARIED

INDIVIDUALS and PERSONS OF INDIAN

ORIGIN

(NRI and PIO)

Non Individual Applicants

– (NIA)

1 Residential Home Purchase Loan (New) – RHPL

Yes Yes Yes Yes Yes

2 Residential Home Purchase Loan (Resale) - RHPLR

Yes Yes Yes Yes Yes

3 Residential Self Construction Loan – RSCL

Yes Yes Yes Yes Yes

4 Residential Plot + Construction loan – RPCL

Yes Yes Yes Yes Yes


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5 Home Extension Loans – HEL Yes Yes Yes Yes Yes

6 Home Improvement Loans – HIL Yes Yes Yes Yes Yes

7 Residential Plot Loans – RPL Yes Yes Yes Yes Yes

8 Non Residential Premises Loans – NRPL Yes Yes Yes Yes Yes

9 Loan Against Property – LAP Yes Yes Yes No Yes

Notes –

• Self Employed Professionals would include practicing Doctors, Lawyers (Practicing in Supreme Court or High Court), Chartered accountants, and Architects. This would also include other professionals who work as consultants / retainers, get professional compensation and get TDS certificate in Form 16A.

• Self Employed Non Professionals would include Proprietors, Partners and directors of Private Ltd companies and closely held public ltd companies.

• Non individual applicants include Partnership firms (All partners to be applicants), Private Ltd Companies (Majority shareholders/directors to be applicants) and closely held public limited companies.

• Products 1 to 6 in the above table are collectively referred to as ‘Home Loans’.

2. PRODUCT SPECIFIC PARAMETERS COMMON FOR ALL APPLICANTS:

S. No

Parameter

↓

Residential Home Purchase Loan (New and

resale)

(RHPL / RHPLR)

Residential Self

Construction Loan

(RSCL)

Residential Plot + Construction Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improvement

Loan

(HIL)

Residential Plot Loan

(RPL)

Non Residential Premises

Loan

(Pur, Cnstr & Ext) (NRPL)

Loan Against Property

(LAP)

(Residential & commercial)


July 2011

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S. No

Parameter

↓


resale)

(RHPL / RHPLR)

Residential Self

Construction Loan

(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improvement

Loan

(HIL)


(RPL)


Loan



(LAP)


1. PURPOSE 1. Purchase of a ready to occupy complete residential property. This includes Direct from builder / Development authority / State Housing Boards / Any other competent government authority who has constructed the property. 2. Purchase of Builder / Development authority / State Housing Board / Any other competent government authority under-construction property. This includes constructing an apartment building, row houses or independent houses and the borrower wants to purchase the under-construction property. This would also include properties where the builder is yet to commence construction and has commenced the bookings process.

This would include a self construction case where the land is already owned by the borrower and the borrower now requires finance for constructing the residential house property.

For financing the purchase of the land and the construction of the residential house property thereon. The sanction would be done in two parts – one for land and another for construction. The first disbursement for the first part would be booked as a land loan. No interest certificate would be provided. When the construction commences, the second part for construction would be disbursed. A revised consolidated sanction letter would be issued to the borrower for outstanding of land loan and amount for construction.

For financing the extension of a borrowers existing residential house property. In other words the borrower may need additions in the form of new rooms or floor to his existing residential house property and therefore requires a loan for the same

For financing the renovation of a borrowers existing house property. This may entail painting, woodwork, re-fabrication of the existing structure, new flooring or any other form of renovation which may be required by the borrower and is fixed in nature to the structure.

For purchase of a residential plot of land.

For purchase, construction, extension of an office, clinic, shop or other commercial property

For business, marriage, education, medical treatment or any other personal need.


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S. No

Parameter

↓


resale)

(RHPL / RHPLR)

Residential Self

Construction Loan

(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improvement

Loan

(HIL)


(RPL)


Loan



(LAP)


2. Benefit under

section 24(b) of the

Indian Income Tax

Act 1969

Available Not Available

15 15 15 1 1 20 25 25 Minimum

Loan amount (Rs in Lacs) –

Tier 1 Cities

Notes : 1. Tier 1 - includes Delhi-NCR, Mumbai, Navi Mumbai and Bangalore 2. Loans below the minimum limit prescribed would be approved as per the grid in annexure 1.

8 8 8 1 1 10 12 12 Minimum

Loan amount (Rs in Lacs) –

Tier 2

1. Tier 2 – Includes Chandigarh, Chennai, Indore, Jaipur and Pune 2. Loans below the minimum limit prescribed would be approved as per the grid in annexure 1.

5 5 5 1 1 8 10 10

3

Minimum Loan

amount (Rs in Lacs) –

Tier 3

1. Tier 3 – All other branches of PNBHFL that have been identified as ‘Growth’ branches. 2. Loans below the minimum limit prescribed would be approved as per the grid in annexure 1.

500 500 500 200 50 500 500 500

4 Maximum Loan

amount (Rs in Lacs)

Note : Loans above the maximum limit prescribed would be approved as per the grid in annexure 1

5 Maximum Loan

tenure 20 Years 20 Years 20 Years 15 Years 10 Years 10 Years 10 Years 10 Years


July 2011

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S. No

Parameter

↓


resale)

(RHPL / RHPLR)

Residential Self

Construction Loan

(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improvement

Loan

(HIL)


(RPL)


Loan



(LAP)


Note: 1. The residual life of the property at the time of disbursement as per the empanelled property appraiser’s report to be more than the loan tenor by minimum 10 years 2. Where there is an increase in tenure due to increase in the floating interest rate applicable, the tenure can be extended by upto 5 years from the original tenure approved. 3. Deviations as per approval grid – annexure 1

6 Portfolio caps

No cap No cap No cap No cap No cap 10% 5% 20%

7 Rate of Interest

(ROI)

• Can be Floating or fixed.

• The applicable rate would be as communicated by Head Office from time to time

• The rate of interest as on the date of first disbursement would apply.

8 Processing Fee

• As communicated by Head Office from time to time

• The processing fee mentioned in the sanction letter would be valid for 30 days from the date of sanction.

9 Prepayment fees

• As communicated by Head Office from time to time

10 Borrowers • All co-owners of the property given as security must be applicants to the case.

• Minors cannot be borrowers • Co borrowers must be as defined in the Income-ownership grid – annexure 5

• There can be a maximum of 3 co-borrowers to a case (i.e. total of 4 applicants – 1 borrower and 3 co borrowers)

• A co-borrower is mandatory in all cases. Note : deviation as per approval grid - annexure 1

11 Guarantor • Guarantor would be mandatory in cases where there is a single applicant . (A guarantor to be taken where an acceptable co-borrower as per the Income-Ownership grid in annexure 5 is not possible).

Note : deviation as per approval grid - annexure 1

12 Contactability

• Either Landline telephone connection or Post Paid Telephone mandatory at residence.

• Landline telephone connection mandatory at office / workplace. Note : deviation as per approval grid - annexure 1


July 2011

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S. No

Parameter

↓


resale)

(RHPL / RHPLR)

Residential Self

Construction Loan

(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improvement

Loan

(HIL)


(RPL)


Loan



(LAP)


13 Geographical limits

• Each location must define its geo limits.

• Funding must be restricted within the defined geographical limits

• Current Residence and workplace must be located within the defined geographical limit.

• In cases where the current residence and workplace are outside geo limits, such cases can be considered under deviation only with a local guarantor whose income should be at par with that of the borrower. Accordingly income proof for the guarantor needs to be taken in this case. Furthe r, collection related issues should be appropriately mitigated in the file. The local guarantor must be residing and working within the approved geo limits. Authorities to approve this deviation are defined in the approval grid – annexure 1.

• Property to be financed must be located within the defined geographical limit. Deviation to this policy would require approval as per Annexure 2 Note : A borrower residing in any of the PNBHFL approved locations, can take a loan for purchasing a property within the geographical limits of either the location where he is residing or in any other PNBHFL approved location. The loan would be booked at the branch where the property is located.

14 Negative areas

• Each location must define its negative areas

• Property being funded must not be located in the defined negative areas.

• Current residence of the applicants must not be in the defined negative areas. • Exceptional cases can be done only with the approval of the authority defined in the approval grid – annexure 1 for residence and annexure 2 for

property

15 Caution profiles

• The list of caution profiles is mentioned in annexure 15

• Borrower / Co borrower / guarantor must not belong to a profile mentioned in the list of caution profiles

• Exceptional cases can be done only with the approval of the authority defined in the approval grid – annexure 1

16 Repayment Plans

• EMI

• Step up repayment

• Step down repayment

EMI EMI EMI EMI


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S. No

Parameter

↓


resale)

(RHPL / RHPLR)

Residential Self

Construction Loan

(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improvement

Loan

(HIL)


(RPL)


Loan



(LAP)


17 Bank statement

period norms

• Last 6 months Bank statements of salaried applicants, whose income is being considered for eligibility calculation.

• Last 12 months bank statement of self employed applicants, whose income is being considered for eligibility calculation.

• The account assessed to be the main salary account and all accounts reflected in the latest Balance Sheet in case of self-employed.

• In addition to the above, 6 months statements for any other account from which EMIs of existing loans are being serviced.

• Deviation to these norms must be approved by the authority as mentioned in Annexure 1

18 Banking quality < = 60 Transactions* > 60 Transactions* < = 100 Transactions# > 100 Transactions#

Inward Cheque returns 2 4 3 6

Outward Cheque returns 3 6 5 10

Savings Account Business Account

* Total of all savings account bank statements for the last 6 months given in the file

# Total of all current / business account bank statements for the last 12 months given in the file


19 Repayment track

record

• For all the existing loans of the borrower, repayment track records for the last 24 months to be collected, unless the loan itself has a lesser vintage.

• All repayments to be tracked by the PNBHFL credit officers in the format available in the calculator in Annexure 16. To ensure proper capture of

repayment track records, entries for all other loans must be done in the loan calculator.

• There should be no delays in the repayment of existing loans.

• All existing term loan account statements to be provided to check repayment track records.

• Loan closure statement must for loans matured within last 6 months. Repayment track record for these accounts also should be captured in the

calculator.


20 Approved Locations

• The list of approved sourcing locations is provided in Annexure 18 .


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S. No

Parameter

↓


resale)

(RHPL / RHPLR)

Residential Self

Construction Loan

(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improvement

Loan

(HIL)


(RPL)


Loan



(LAP)


21 LTV

For loans upto 20 Lacs - 85% of COP* or MV# (whichever is lower) For loans > 20 Lacs - 80% of COP* or MV# (whichever is lower)

For loans upto Rs 20 lacs, the LTV = 85% of (Cost of construction@ + Cost of land

##)

or 100% of Cost of construction@ , whichever is lower. For loans of more than Rs 20 lacs, the LTV = 80% of (Cost of construction@ + Cost of land

##)

or 100% of Cost of construction@ , whichever is lower.

For loans upto Rs 20 lacs, the LTV = 85% of (Cost of construction@ + Cost of land

##)

For loans of more than Rs 20 lacs, the LTV = 80% of (Cost of construction@ + Cost of land

##)

Note - Disbursement for land not to exceed 75% of land value or 70% of loan amount whichever is lower.

For loans upto Rs 20 lacs, the LTV = 100% of Cost of extension** subject to overall LTV calculated on the value of the house property as per the valuation report being less than 85% of MV# For loans of more than Rs 20 lacs, the LTV = 100% of Cost of extension** subject to overall LTV calculated on the value of the house property as per the valuation report being less than 80% of MV#

100% of cost of improvement*** , subject to Maximum 25% of the MV# of the property

75% of the value of the plot of land## considered.

The value considered would be lower of the market value and the transaction value (including the stamp duty and registration cost)

All the criteria remain same as in RHPL, RCL, and HEL.

However -

The LTV would however be restricted to 70% instead of 80% / 85%

A. Residential Property

1. Self occupied - 60% of Value considered@@

B. Commercial Property

1.Self occupied -55% of Value considered@@

Notes –

1. Stamp Dt & reg chgs cannot be added to val considered.

2. Two valuations in LAP cases

3. Properties that are self occupied to the extent of 50% or more (based on area of the property), would be permitted for funding. In such cases, the number of tenants not to exceed 3.


July 2011

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S. No

Parameter

↓


resale)

(RHPL / RHPLR)

Residential Self

Construction Loan

(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improvement

Loan

(HIL)


(RPL)


Loan



(LAP)


Notes:

• Cost of Property (COP) = (Value mentioned in Registered Sale deed/conveyance deed/lease deed/allotment letter + amount of stamp duty + registration cost + cost of amenities as per the amenities agreement/Fixtures and Fittings (F&F) agreement

+ electricity connection charges + charges

applied by society for transfer). If stamp duty is paid on the amenities agreement / F&F then the actual cost as mentioned in the amenities agreement is considered else the amount is capped to 25% of the balance payment (other than F&F) made to the builder / seller The disbursement of the amount against the F&F agreement, can be made either to borrower or to builder / seller. In cases where the builder has registered the structure and has then provided a finishing agreement to the borrower (which would be in line with the market practice), a separate F&F agreement would not be accepted.

• # Market Value (MV) = Value of the property as assessed by the empanelled property appraiser. Stamp duty, Registration charges etc cannot be added to the market value.

• @

Cost of construction = Value mentioned in the construction estimate provided by the borrower. This estimate of construction cost has to be vetted by the empanelled valuer, and in case the empanelled valuer’s reported value of the estimate is lower, then lower value to be considered for LTV.

• ##

Cost of Plot of land = Value of the plot of land mentioned in the registered Sale deed / Allotment letter / Conveyance deed / lease deed plus registration cost plus stamp duty. If the value of the plot as mentioned in the valuation report is lower than the value mentioned in the documents, the lower value to be considered for LTV calculation. In RSCL cases, if the land was purchased and registered by the borrower 5 years prior to the date of application, market value of land can be considered for the purposes of calculating LTV. However, in such cases where the market value is being considered, the cost of construction taken for the purposes of LTV would be lower of Rs.1200 per sq.ft. or as estimated by the valuer.

• **Cost of extension = Value mentioned in the construction estimate provided by the borrower. This estimate of extension cost to be vetted by the empanelled valuer and in case the empanelled valuer’s reported value is lower, the lower value to be considered for LTV calculations.

• ***Cost of improvement = Value mentioned in the improvement estimate provided by the borrower. This estimate of improvement cost to be vetted by the empanelled valuer and in case the empanelled valuer’s reported value is lower, the lower value to be considered for LTV calculations

• @@ Value considered = Lower of the two market valuations done by empanelled property appraisers

• No LTV deviations beyond product norms would be allowed for RHPL, RHPLR, RSCL, RPCL and HEL.

• For all LAP cases, the property should have been registered in the name of the borrower(s) at least 12 months prior to the date of application. If LAP is to be funded for a property that is registered less than 12 months prior to date of application, only registered value to be considered for LTV purposes.

• Interaction between borrower and PNBHFL empanelled valuer should not be encouraged - except for coordination of the property visit for inspection. Construction / Extension / Improvement estimates prepared by borrower’s contractor / engineer / architect, to be vetted by PNBHFL empanelled valuer.

• In cases where future rental income is considered for eligibility calculations, the LTV cannot be more than 75% of the Market value of the property.

• In cases where the borrower wishes to provide 100% cash collateral to enhance his loan eligibility, the total loan exposure, including loan advganced against the cash collateral, should be within the above stated LTV norms.

• Insurance funding would be allowed at 5% of the loan amount over and above the LTV %ages specified here. • Deviation to these norms must be approved by the authority as mentioned in annexure 2


July 2011

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S. No

Parameter

↓


resale)

(RHPL / RHPLR)

Residential Self

Construction Loan

(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improvement

Loan

(HIL)


(RPL)


Loan



(LAP)


22 No of valuations

• One external valuation by PNBHFL empanelled property appraiser would be mandatory in all cases.

• In resale cases, two valuations would be done as per norms below: - Delhi-NCR, Mumbai and Bangalore : In all cases with loan amount > Rs.35 lacs - Chandigarh, Chennai, Indore, Jaipur and Pune : In all cases with loan amount > Rs. 20 lacs - Others : In all cases with loan amount > Rs.15 lacs

• For projects, the valuation would be done for the entire project on a quarterly basis or earlier on the discretion of CRO. Separate valuations for individual flats would not be done.

• In all LAP cases, 2 valuations would be done, irrespective of the loan amount.

• In all HIL cases, 2 valuations would be done for loans more than Rs.10 lacs.

23 Property visit by

Branch / state

branch head

• In all non-developer cases, a property visit by the PNBHFL staff / agency resource for CRO approved locations, would be mandatory.

24 Fixed Obligations to Income

Ratio (FOIR)

Definition

FOIR is Fixed monthly loan obligations including the monthly instalment of the PNBHFL loan under consideration divided by the eligible gross monthly family income considered for the borrower. The method of calculation for Gross monthly income for different customer segments and programmes is mentioned at the respective places in this document.

25 Insurance • Property insurance is required in all cases

• Insurance funding upto 5% of the loan amount post sanction can be done without seeking re-approval.

• Insurance funding has to be within FOIR, though it is permissible in addition to the LTV limits prescribed. • Deviation to these norms must be approved by the authority as mentioned in annexure 1


July 2011

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S. No

Parameter

↓


resale)

(RHPL / RHPLR)

Residential Self

Construction Loan

(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improvement

Loan

(HIL)


(RPL)


Loan



(LAP)


26 Security of the loan

• Equitable Mortgage on the property financed by way of deposit of title deeds.

• First Charge or Pari-passu charge on the properties funded. Pari-Passu charge not allowed in case of RPL, NRPL and LAP.

• Security may also be required on a case to case basis by the way of Registered Mortgage. In case of Registered Mortgage, the Draft deed is to be approved by legal in all cases and is to be vetted by the internal legal counsel before registration. Post registration Credit to ensure that the Registered Deed is as per the draft deed vetted by the legal team.

• Any other form of alternate security to be approved by PNBHFL to be approved by Internal Legal Counsel.

27 Field Investigatio

n (FI)

• Mandatory for all applicants – refer section 18.1 for guidelines on field investigation.

• Mandatory for Residence and Workplace.

• In LAP cases where property is not self occupied the FI must be conducted at the property also.

• Refer Annexure 3 for FI override policy.

28 Telephonic verification

(TVR)

• Mandatory for all applicants – refer section 18.2 for guidelines on telephonic verification.

• Refer CPV override policy section for deviation authorities

• Refer Annexure 1 for override policy

29 Credit Bureau check

• Mandatory for all applicants in all cases – refer section 18.3 for guidelines and override policy.

• Corporate Credit Bureau checks to be done in cases where the credit team recommends the same.

30 De duplication

check

• De duplication is a check run by PNBHFL to identify whether the applicant has an existing relationship with PNBHFL of if the applicant’s loan has been rejected by PNBHFL earlier.

• The database will provide a record of the applicant’s repayment behavior in the existing relationship.

• Defaults in existing relationship will help avoid enhancing or re financing existing defaulters.

• Mandatory for all applicants in all cases – refer Annexure 17 for details

31 Income Tax Return

Verification

• Mandatory in all SEP / SENP cases.


July 2011

17

S. No

Parameter

↓


resale)

(RHPL / RHPLR)

Residential Self

Construction Loan

(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improvement

Loan

(HIL)


(RPL)


Loan



(LAP)


32 Re-Finance • Any payments made by the borrower(s) towards acquisition of property during the 6 months immediately preceding the date of application for the loan

can be refinanced by PNBHFL.

• The payments should be through banking channels and the receipts for the same must be available in file.

33 Sanction validity

• Sanction letters would be valid for 90 days from the date of sanction

• Any increase / decrease in loan amount or change of terms required during this period of 90 days can be processed without asking for fresh income documents

• The processing fee that is stated in the sanction letter would be valid only for 30 days from the date of sanction letter.

• De-duplication check & Credit bureau check would be done at the time of re-crediting these cases

• Post the period of 90 days from the date of sanction, if the disbursement has not been availed, the sanction would expire and the case would be appraised once again with fresh documentation and processing fee.

• The fresh sanction letters must mention the cancellation of the earlier sanction letter.


July 2011

18

3 PRODUCTWISE UNDERWRITING PARAMETERS SPECIFIC TO SALARIED APPLICANTS:

S. No

Parameter

↓

Residential Home Purchase Loan

(New and resale)

(RHPL)

Residential Self Construction Loan

(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)

Loan Against Property (LAP)

Tier 1 Cities - Rs 30000/-

Tier 2 Cities – Rs.20000/-

Tier 3 Cities – Rs.10000/-

Rs 30000/- Rs 30000/- Rs 30000/-

1 Minimum Qualifying

Income

Notes:

• The abovementioned incomes are combined incomes for all applicants whose income is being considered for eligibility calculation.

• This income would be based on latest salary slip of the applicants.

• The abovementioned incomes are the gross incomes of all the applicants prior to any deduction of tax

• The abovementioned incomes are monthly incomes.

2 Income considered • As per section 3.1 below

3 Salary Credits

The salary of the borrower should be coming through banking channels and the bank statements taken for the last six months should reflect month on month salary credit. Cash salary can be accepted under the following circumstances:

• Only as a supporting income. The main applicant should have salary credits.

• Only in case of PSU, government and semi-government employees.

• Form 16 and PF deduction are mandatory.


July 2011

19

S. No

Parameter

↓


(New and resale)

(RHPL)


(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)


4 Total years in

employment • Minimum 3 years

Minimum 5 years

Minimum 5 years

Minimum 10 years

If the borrowers income is considered for eligibility – 21 Years at the time of origination of the loan. 5

Minimum Age of

borrowers If the borrowers income is not considered for eligibility – 18 Years at the time of origination of the loan.

6 Maximum Age of

borrowers at the time of maturity of

the loan

• If the borrowers income is considered for eligibility – 65 Years or retirement age, whichever is less, at the time of maturity of the loan

• If the borrowers income is not considered for eligibility and the borrower is the property owner – 70 years at the time of maturity of the loan. Age can be more than 70 years at the time of maturity of the loan if the following two conditions are fulfilled:

� Take declaration from customer who will cross 70 yrs stating who the legal heirs are.

� All other legal heirs to be co applicants or NOC for creation of mortgage along with a declaration from all legal heirs stating that they

are aware of this charge being created in favour of PNBHFL required.

7 Minimum qualification

The borrower(s) / co-borrower(s) whose income is being considered for eligibility should be Graduate or holding a vocational diploma Note – Deviations as per the approval authority in Annexure 1


July 2011

20

S. No

Parameter

↓


(New and resale)

(RHPL)


(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)


8 Type of employment acceptable

• Employee of : � Public Limited Company � Multinational company � Government / Public sector company/Quasi Government � Autonomous bodies set up by the government � Employees of Pvt Ltd companies meeting the following norms:

� Minimum 5 years of experience � Having compulsory PF deduction

� Limited liability partnership � Registered Partnership firms with approval from Hub Underwriting Head.

Note –

• Deviations as per the approval authority in Annexure 1

• In case the borrower is an employee of a private limited company, the underwriter at his / her discretion can ask for the financials of the private limited company to get a better understanding of the company.

9 Maximum Number of

dependents

• Not to exceed 5

Note – Deviations as per the approval authority in Annexure 1


July 2011

21

S. No

Parameter

↓


(New and resale)

(RHPL)


(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)


10 FOIR (Fixed obligation to

Income Ratio)

FOIR is Fixed monthly loan obligations including the monthly instalment of the PNBHFL loan under consideration divided by the eligible gross monthly family income considered for the borrower (as calculated in section 3.1). Family income here refers to the income of all the family members who have been included as borrowers / co-borrowers to the loan.

• If Gross monthly Income considered is > = Rs 10000 and < Rs 20000 FOIR is 40%

• If Gross monthly income considered is >= Rs 20000 and < Rs 50000 FOIR is 50%

• If Gross monthly income considered is >= Rs 50000 and < Rs 100000 FOIR is 55%

• If Gross monthly income considered is >= Rs 100000 FOIR is 60% Notes:

• Income considered is calculated as described in section 3.1 below

• All loans maturing within 12 months for cases where property is under-construction and within 6 months for Resale cases, to be excluded from other obligations. The total EMI of these excluded other loans not to exceed 50% of the applicable FOIR

Max 50% Max 50% Max 50%

11 INSR • INSR stands for Fixed monthly obligations including monthly instalment of the PNBHFL loan under consideration divided by the eligible net monthly family income considered for the borrower (Net Salary as per latest salary slip + Other income considered – Tax on Other Income). Family income here refers to the income of all the family members who have been included as borrowers / co-borrowers to the loan.

• Maximum INSR 70%

Max 60% Max 60% Max 60%

12 Eligibility • As per FOIR, INSR and LTV norms.

• The Eligibility calculator is given in Annexure 16


July 2011

22

S. No

Parameter

↓


(New and resale)

(RHPL)


(RSCL)


(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)


13 Personal discussion

• Personal Discussion (face to face) by Branch or State Branch Head would be required in the following cases: o Tier 1 cities - where loan amount is Rs 40 Lacs or more. o Tier 2 cities – where loan amount is Rs.30 lacs or more o Tier 3 cities – where loan amount is Rs.10 lacs or more

• PD can be done at the borrower’s workplace, residence or at the PNBHFL office.

• In cases where the loan amount is below the limits specified above for the location, the PD can be done telephonically.

• Personal visits in all cases below the limits specified above would be at the discretion of the underwriter.

• Format of PD for salaried applicants as per Annexure 7

14 Reference checks

• At least one reference check to be done by PNBHFL employee on the applicants.

• Reference checks to be done with the references provided in the loan application form.

• This reference check will primarily establish contactability with the reference.

• Other usual questions to be asked would address the following points: • Relation with the applicant – Business / personal. • Length of the relationship. • If the relation is personal – the feedback of the applicant on the personal aspects of the applicant. • If the relation is a Business one – What is the nature of the relation? What is the quantum of the supply or service in monetary

terms? What is the feedback on the official behavior in terms of professionalism and payments? • Any other feedback.


July 2011

23

3.1 INCOME CONSIDERED FOR SALARIED APPLICANTS

Primary source of Income % for eligibility Income proof document

Items regularly reflected in salary slip/monthly salary certificate 100% Salary slip or month’s salary certificate.

House Rent Allowance (HRA) to be added to income if applicant plans to shift to his own house from company provided accommodation and there is proof that the allowance will continue post shifting to own house

100% Appointment letter or annual salary certificate

Other Fixed allowances not appearing in the Salary slip / certificate and not part of gross monthly salary.

100% Appointment letter / increment letter / circular from company to employees

Pension income

100% Latest pension slip and Bank statement showing pension credit . If pension is in cash, receipt of the same to be collected. Cash pension acceptable only from government organizations.

Bonus (Average of the last two years) 50% Appointment letter / annual salary certificate for the last two years / Bonus letter / Salary slips that reflect bonus for the last two years

Annual benefits (LTA, Medical etc)

50% Annual salary certificate / appointment letter

Flexible components of salary like overtime, performance incentive, flying allowance, mileage allowance etc.

50% of average of last 4 months ‘ flexible salary component

4 months’ salary slip / salary certificate mentioning flexible salary component for 4 months.

Reimbursement against actual (telephone bill reimbursement etc.) 0% Not applicable

Other sources of income % for eligibility Income proof document

Agricultural income (As stated in ITR) 50% of avg of last 2 yrs ITRs and 7/12 extract / mandi receipt or ownership document copy

Rental income 100% of the current rental income

Rental agreement / leave and license agreement and rentals to be reflected in bank statement for the last 6 months/ownership proof with one of the applicants


July 2011

24

Future rental income * Conditions: 1. Applicable only for RHPL, RHPLR, RSCL, RPCL and HEL. 2. Increase in eligibility to be capped at 20% of the normal eligibility (without considering future rental income) 3. The annual rental value not to exceed 5% of the Market Value of the property. 4. LTV not to exceed 75% of the market value. 5. In RPCL product, future rental will be considered only after the construction commences.

100% of the projected rental income subject to the conditions *

Declaration from borrower in prescribed format as to why he would not occupy the new house when complete.

General and life insurance commission / Broker commission -Commission on Insurance companies, NSC, KVP, IVP and postal savings.

50% of commission on new business and 100% of commission on renewal business

Certificate/ original commission slip from cos.

Interest /Dividend Income (Dividend income if considered, must reflect in the bank statement and a copy of the statement showing dividend income to be placed in file.)

50% of average of last 2 years

3 years ITRs.

The aggregate of the other sources of income must not be more than 100% of the aggregate of main salary income.


July 2011

25

4 UNDERWRITING NORMS FOR SELF EMPLOYED PROFESSIONALS

S. No

Parameter

↓


(New and resale)

(RHPL)

Residential Self Construction

Loan

(RSCL)

Residential Plot + Construction

Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)


(LAP)

Tier 1 Cities - Rs 310,000 p.a.

Tier 2 and Tier 3 Cities – Rs.250,000 p.a.


Income (Net Profit before tax) Notes:

• Where there are more than one applicant, whose income(s) are being considered, at least one of the applicants must have the minimum income of Rs.310,000 and the other applicant(s) should have a minimum income of at least Rs.180,000.

• For the purpose of qualifying income the Net profit to be derived from the latest years audited / CA certified financials.

• The Income Tax Returns of the applicants to be verified.

• The Income Tax Returns for all 3 years not to have been filed in the same year.

• There should be a gap of at least 6 months between the filing of two returns.

Rs 7,50,000 p.a. Rs

15,00,000/- p.a.

Rs 15,00,000/-

p.a.

Rs 15,00,000

p.a.

Minimum gross

professional receipts (Tier 1) Notes :

1. Tier 1 - includes Delhi-NCR, Mumbai, Navi Mumbai and Bangalore

2. Loans below the minimum limit prescribed would be approved as per the grid in annexure 1.

Rs 6,50,000 p.a. Rs

10,00,000/- p.a.

Rs 10,00,000/-

p.a.

Rs 10,00,000

p.a.

2

Minimum gross

professional receipts (Tier 2)

1. Tier 2 – Includes Chandigarh, Chennai, Indore, Jaipur and Pune



July 2011

26

S. No

Parameter

↓


(New and resale)

(RHPL)


Loan

(RSCL)


Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)


(LAP)

Rs 5,50,000 p.a. Rs

7,50,000/- p.a.

Rs 7,50,000/-

p.a.

Rs 7,50,000

p.a.

Minimum gross

professional receipts (Tier 3)

1. Tier 3 – All other growth branches


3 Professional vintage

• Minimum 3 years in the same profession as a Self Employed Professional

• Min 2 years in the same profession as a Self Employed Professional, if salaried previously for at least 3 years.

4 Professional Qualification

proof

• To be ascertained from professional qualification certificate.

• For Doctors, MBBS / BDS / MDS / MD or any other higher medical qualification.

• For CAs membership numbers must be checked up at the web site www.icai.org of the institutes to validate the qualification of the professional.


July 2011

27

S. No

Parameter

↓


(New and resale)

(RHPL)


Loan

(RSCL)


Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)


(LAP)

5 Income considered

and eligibility calculations

FOR

DOCTORS

There are three components of Eligibility Calculation: 1. Income Considered 2. FOIR 3. Double Whammy 1. Income Considered: Income Considered = Last 2 years’ average Annual Gross Professional Receipts + Other Income@ 2. FOIR = (EMI on PNBHFL Loan + Other monthly fixed obligations) / (Income Considered / 12) 3. Double Whammy (DW): DW = Maximum FOIR + Maximum LTV – 10%. This 10% can be reduced either in FOIR or in LTV depending on the case. The FOIR or LTV, independently, not to exceed the maximum limits prescribed for the product and customer segment. @ Other Income: Other income can be calculated in the same manner as mentioned in section 3.1. However other income considered for eligibility would be arrived at as below:

a. Maximum other income to be restricted to Average GPR of last two years b. Other income considered for eligibility calculation would be capped at 50% of ‘a’ above

Eligibility Calculation: The loan eligibility would be lower of the following, subject to double whammy norms met: ((Average Annual GPR of last 2 years *3) + (Other Income Considered / EMI per lac)) OR Loan amount calculated on an FOIR of 100% The Eligibility calculator is given in Annexure 16


July 2011

28

S. No

Parameter

↓


(New and resale)

(RHPL)


Loan

(RSCL)


Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)


(LAP)

6 Income considered

and eligibility calculations

FOR OTHER

PROFESSIONALS

There are three components of Eligibility Calculation: 1. Income Considered 2. FOIR 3. Double Whammy 1. Income Considered: Main Professional Income* + Other incomes@ *Main Professional income is the sum of the following:

• Net profit after tax as per the P&L account – 100% of average of the last 2 years

• Depreciation – 2/3rd

of average of the last 2 years

• Remuneration received from the firm/company – 100% of average of the last 2 years @Other incomes : Other income can be calculated and added in the same manner as mentioned in section 3.1. Other income not to exceed 100% of Main Professional Income. 2. FOIR: (EMI on PNBHFL Loan + Other monthly fixed obligations) / (Income Considered / 12) 3. Double Whammy (DW): DW = Maximum FOIR + Maximum LTV – 10%. This 10% can be reduced either in FOIR or in LTV depending on the case. The FOIR or LTV, independently, not to exceed the maximum limits prescribed for the product and customer segment. Eligibility Calculation: Loan eligibility based at a maximum FOIR of 80% subject to DW norms being met. The Eligibility calculator is given in Annexure 16


July 2011

29

S. No

Parameter

↓


(New and resale)

(RHPL)


Loan

(RSCL)


Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)


(LAP)

7 Notes to eligibility

calculations for Doctors &

other professionals

For doctors under GPR method:

• Other income would be restricted to 50% of the average gross professional receipts of last two years

• In order to consider Agricultural, dividend or interest income they must be reflected in the P&L account / ITR for the last 3 years

• Rental income to be reflected in the bank statements for the last 6 months. Where rental income is considered property ownership proof must be taken.

• There should be no cash losses in the last 2 years

• There should be no accumulated losses in the last 2 years For other professionals:

• Depreciation considered not to exceed the Net Profit after tax

• Exceptional expenses which are one-time in nature can be added back to the net profit for the year.

• Exceptional income which is one-time in nature or speculative income or one time capital gains to be excluded from the calculation of Net profits before arriving at the Net profit to be considered for eligibility calculations.

• All loans maturing within 12 months for cases where property is under-construction and within 6 months for Resale cases, to be excluded from other obligations. The total EMI of these excluded other loans not to exceed 50% of the applicable FOIR.

• Latest year’s NP after Tax can be considered 100% but would be subject to 150% of the previous year’s NP after Tax.

• Sum of other incomes considered above cannot exceed 100% of the Main Professional Income considered.

• In order to consider Agricultural, dividend or interest income they must be reflected in the P&L account / ITR for the last 3 years



• There should be no accumulated losses in the last 2 years

• Remuneration credits to be validated from the bank statements (either on a monthly basis or cumulative basis)

• Remuneration to be reflected in the ITRs.


July 2011

30

S. No

Parameter

↓


(New and resale)

(RHPL)


Loan

(RSCL)


Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)


(LAP)


• Personal Discussion required in all cases, irrespective of the loan amount.

• PD must be done at borrower’s workplace

• Format of PD as per the Annexure 8 attached

9 Reference check • At least 2 reference checks to be conducted.

• Do the reference checks on the references provided in the application form by the applicants.

If the borrowers income is considered for eligibility – 23 Years at the time of origination of the loan 10 Minimum Age

of borrowers

If the borrowers income is not considered for eligibility – 18 Years at the time of origination of the loan

11 Maximum Age of


the loan

• If the borrowers income is considered for eligibility – 70 Years at the time of maturity of the loan

• Age can be more than 70 years at the time of maturity of the loan if the following conditions are fulfilled:

� Borrower is the property owner � Take declaration from customer who will cross 70 yrs stating who the legal heirs are.

� All other legal heirs to be co applicants or NOC for creation of mortgage along with a declaration from all legal heirs stating that they

are aware of this charge being created in favour of PNBHFL required.

10 Maximum Number of

dependents

• Not to exceed 5

• In case the number of dependents more than norms the approval from higher authority as per the approval grid would be required – Annexure 1


July 2011

31

S. No

Parameter

↓


(New and resale)

(RHPL)


Loan

(RSCL)


Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)


Loan

(NRPL)


(LAP)

11 Banking • Average Bank Balance for the last 12 months > 0.50 times the proposed EMI on a month on month basis

• The average bank balance to be calculated as average of balances as on 10th, 15

th and 25

th of the month.

• For OD accounts the difference between monthly Debit and Credit to be considered to arrive at Avg balance.

5 UNDERWRITING NORMS FOR SELF EMPLOYED NON PROFESSIONALS

S. No

Parameter

↓


(New and resale)

(RHPL)


(RSCL)

Residential Plot +

Construction Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)

Non Residential

Premises Loan

(NRPL)


Tier 1 Cities – Rs.310,000/- p.a.

Tier 2 and Tier 3 Cities – Rs.250,000 p.a.


Income

(Net Profit before tax) • Where there are more than one applicant whose income(s) are being considered, at least one must have the minimum income of

Rs.310,000 and the other applicant(s) should have a minimum income of at least Rs.180,000.

• For the purpose of qualifying income the Net profit to be derived from the latest years audited / CA certified financials

• The Income Tax Returns of the applicants to be verified.

• The Income Tax Returns for all 3 years not to have been filed in the same year.

• There should be a gap of at least 6 months between the filing of two returns.

2 Business Vintage

Minimum 5 years with at least the last 3 years in the same line of business


July 2011

32

S. No

Parameter

↓


(New and resale)

(RHPL)


(RSCL)

Residential Plot +

Construction Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)

Non Residential

Premises Loan

(NRPL)


Main business incomes:

• Net profit after tax as per the P&L account – 100% of average of the last 2 years

• Depreciation – 2/3rd

of average of the last 2 years

• Remuneration received from the firm/company – 100% of average of the last 2 years Other incomes Other income can be calculated and added in the same manner as mentioned in section 3.1. Other income not to exceed 100% of Main Business Income.

3 Income considered

Notes on the Incomes considered:

• Depreciation considered not to exceed the Net Profit after tax

• Exceptional expenses which are one-time in nature can be added back to the net profit for the year.

• Exceptional income which is one-time in nature or speculative income or one time capital gains to be excluded from the calculation of Net profits before arriving at the Net profit to be considered for eligibility calculations.

• Latest year’s NP after Tax can be considered 100% but would be subject to 150% of the previous year’s NP after Tax.

• In order to consider Agricultural, dividend or interest income they must be reflected in the P&L account for the last 3 years


• Sum of other incomes considered above cannot exceed 100% of the sum of main business income considered.



• Remuneration credits to be validated from the bank statements (either on a monthly basis or cumulative basis)

• Remuneration to be reflected in the ITRs.


4 Minimum • If the borrowers income is considered for eligibility – 23 Years at the time of origination of the loan


July 2011

33

S. No

Parameter

↓


(New and resale)

(RHPL)


(RSCL)

Residential Plot +

Construction Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)

Non Residential

Premises Loan

(NRPL)


Age of borrowers

• If the borrowers income is not considered for eligibility – 18 Years at the time of origination of the loan

5 Maximum Age of


the loan

• If the borrowers income is considered for eligibility – 70 Years at the time of maturity of the loan

• Age can be more than 70 years at the time of maturity of the loan if the following two conditions are fulfilled:

� Borrower to be a property owner � Take declaration from customer who will cross 70 yrs stating who the legal heirs are.

� All other legal heirs to be co applicants or NOC for creation of mortgage along with a declaration from all legal heirs stating that they are

aware of this charge being created in favour of PNBHFL required.

6 Maximum Number of

dependents

• Not to exceed 5

• In case the number of dependents more than norms the approval from higher authority as per the approval grid would be required – Annexure 1


• Personal Discussion required in all cases, irrespective of the loan amount.

• PD must be done at borrower’s workplace.

• Format of PD as per the annexure 12 attached

8 FOIR

• Maximum 60%

• FOIR = (EMI on PNBHFL Loan + Other monthly fixed obligations) / (Income Considered / 12)


9 Double Whammy

(DW)

• Maximum DW = Maximum FOIR + Maximum LTV – 10%.

• This 10% can be reduced either in FOIR or in LTV depending on the case.

• The FOIR or LTV, independently, not to exceed the maximum limits prescribed for the product and customer segment.

10 Eligibility • Loan eligibility calculated at a maximum FOIR of 60% subject to DW norms being met


July 2011

34

S. No

Parameter

↓


(New and resale)

(RHPL)


(RSCL)

Residential Plot +

Construction Loan

(RPCL)

Home Extension

Loan

(HEL)

Home Improveme

nt Loan

(HIL)


(RPL)

Non Residential

Premises Loan

(NRPL)


11 Banking • Average Bank Balance for the last 12 months > 0.50 times the proposed EMI on a month on month basis


th and 25

th of the month.


12 Reference Checks

• At least 4 reference checks required.

• Ideally 2 large Debtors and 2 large Creditors should be selected.

• The selection of the references to be done by the PNBHFL official after reviewing the schedules of debtors and creditors for the last 3 years.

• References not to be solicited from the applicants.

6 DOCUMENTATION NORMS

6.1 SANCTIONING STAGE

Document Description


July 2011

35


Application form • The applicants must fill out the complete application form.

• All the applicants to the case must sign the application form.

• The application form must include a passport size photograph of the applicants which must be self attested via a signature across the photograph.

• In cases where the applicant is signing in a vernacular language, a declaration for signing in vernacular language must be taken in the prescribed format.

• Any corrections / overwriting on the application form in critical/mandatory fields marked by asterisk (*) are to be countersigned by all the applicant(s)

Photo Identity proof

(The applicants must provide any one of the options provided and the ID proof must contain a photo for individuals with self attestation).

Identity proof options for individuals:

• Passport

• Pan Card

• Driving License

• Voters ID Card

• Employer ID card

Identity proof options for Non Individuals:

• Shops & Establishment Certificate

• Trade License Certificate

• SSI Registration Certificate

• Sales Tax/ VAT Registration Certificate

• Partnership Deed (for firms) / Memorandum of Association (MOA) for companies

• Export-Import Code Certificate

• Factory Registration Certificate

• Professional qualification Certificate and Degree Certificate for Professionals


July 2011

36


Age Proof

(The applicants must provide any one of the options provided with self attestation).

• Passport

• PAN Card

• Driving License

• Life Insurance Policy

• Birth Certificate (Govt agency)

• School Leaving certificate (10th)

• Employee ID (only for PSU/Govt. Employees)

• If income is not considered for eligibility calculations, an affidavit for age proof can be taken.

Residence Address proof


• Passport

• Driving License

• Voters ID card

• Ration card

• Utility bill (any one from latest 2 months from date of application)

• In case of rented accommodation, lease deed or telephone bill required.

Office Address Proof


• Utility bill-telephone bill, electricity bill (maximum 2 months old)

• Shop & establishment Act certificate

• Sales Tax certificate

• Title document of shop/business premises.

• Any other Govt./authority issued, license, document.

• In case the office is the same as the residence, an affidavit to be taken stating the same.


July 2011

37


Income Documents

(All income documents to be self attested)

Salaried:

• Previous three months’ salary slips.

• Previous 6 months bank statement reflecting the salary credits.

• Latest Form 16 / PF statement to be taken as second income proof.

• In cases where the applicants are submitting salary certificates in place of salary slips the certificates to be on the letter-head of the company and must be signed by the authorized signatory of the company. In such cases it is recommended to get the salary certificates verified through the verification agencies.

SENP/SEP:

• The ITRs and Audited (CA certified - where audit is not mandatory) Financials of both personal and business along with computation of income for the latest 3 years (E.g. in FY 2010-11, ITR of FY 2006-07, 2007-08 and FY 2008-09 to be taken for all applications received up to 30

th Nov 2010. For applications

received post 30th Nov 2010, the ITR’s & Audited (CA certified – where audit is not mandatory) Financials

of FY 2009-10 would be required.

• Advance Tax Challans / VAT returns if available.

• Tax audit report where applicable

Documents in case of entities other than individuals

(All documents to be self attested)

Pvt Ltd Company/closely Held Public Ltd Company:

• Certificate of Incorporation

• MOA & AOA of the company

• Form 32

• Annual return filed with ROC

• List of Directors & Shareholding pattern duly certified by CA

Partnership firm:

• Partnership Deed

• Dissolution Deed

• Any other document as may be required to establish the identity of the organization.


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List of additional documents to be collected where contractual income is considered

(All the documents to be self attested)

• Copy of the Contract Order

• Form 16 A

• Certificate of classification of the Contract

Bank Statement

(Bank statements must be self attested )

Salaried :

• Bank statement required for last 6 months.

• The bank statement to reflect the last 6 months salary credits.

• Required from salary a/c (for cheque salary) or from operating a/c (for cash salary).

• Photocopy of front page mentioning name of account holders, account no, bank name, if not computerized

• Bank statement required till 1 month prior to log-in.

SENP/ SEP:

• Photocopies of updated bank statements for the last 12 months - from current a/c of the firm / company

• Photocopies of updated bank statements for the last 12 months- from the current a/c and savings a/c of the individual applicants and co-applicants.

Processing Fee payment

• Processing fee would be Non-Refundable by nature and must be banked immediately on the login of the file with Credit.

• The Processing fee cheque to be from Salary A/c or Operating a/c as the case may be.

• The processing fee cheque to come from the same account from which PDC / ECS would be given.

OS – Original seen • All KYC documents, Income documents, Bank statements (First and last page) & Property documents must be checked by the concerned officer with the originals. The PNBHFL employee to affix his Signature with Name, Designation & Employee Code on copy of each such document in order to confirm the OS done.


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Signature Verification • Mandatory for all applicants or signatories on behalf of applicants like Partnership firm/Pvt Ltd companies

• PF Cheque clearance is to be treated as positive Signature Verification. Applicant who has given PF cheque need not submit Signature verification proof separately

• In cases where the PF Cheque is not yet presented or clearance is delayed the applicant must provide the bankers signature verification certificate.


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Additional Documents required for NRI borrowers / PIO borrowers

Identity Proof (NRIs)

• Photocopies of relevant pages of the passport where the customer’s name, address, Date of birth and date and place of issue, expiry date, photograph, signature and stamp regarding stay outside India appear.

• Photocopy of valid work permit / employment visa. In case of expired visas, duly acknowledged petitions made to the visa authorities for renewal of visas will be accepted as a valid document.

Identity Proof (PIOs)

• Photocopies of relevant pages of current passport

• Photocopy of the PIO card or Copy of past Indian passport of self / parent / grand parent along with the self declaration of relationship duly notarized and stamped for requisite value.

Address Proof: - Copy of one of the following address proofs outside or within India:

a. Utility bill

b. Driving licence

c. Residence permit (government issued identity card)

d. Credit card bills

e. Rent receipt

f. Overseas / Indian bank statement

The address proof must match with the communication address mentioned on the application form.

Signature Verification

• Processing fee cheque from NRE / NRO account

• Banker’s verification

• Copy of Passport

• PAN card

Signature in the PF cheque / Post Dated Cheques, must match the signature on the application form.

Merchant Navy

• Copy of continuous discharge certificate (CDC) for the past one year to establish continuity of employment.

General Power of Attorney:

In case where NRI borrower is outside India at the time of application, standard draft of POA must be duly attested by the Indian Consulate or POA to be locally notarized if NRI customer is in India at the time of application.

Credit Bureau Score Report – Applicant to generate his Credit Bureau Score report from his country and provide along with the application.


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6.2 DISBURSEMENT STAGE

Parameter Features

Loan Documentation

(all borrowers to sign and the signature must match the sign in the signature verification proof provided)

• PNBHFL Loan Agreement and other documents/declarations as per the disbursement documentation kit approved by PNBHFL internal legal counsel. Stamping of the document must be as per the stamp act applicable to the state.

Property documents All property documents mandated in the Legal Opinion from the empanelled advocate must be collected. The Legal opinion report will clearly mention which documents are to be collected Prior to disbursement, Over the counter and Post disbursement.

Repayment instruments • In case of Salaried applicants : To be collected from salary account

• In case of SENP/SEP : To be collected from main operating account/s

• Minimum number of Post Dated Cheques to be collected - 24

• In cases where ECS mandate is being taken - ECS + 1 Cancelled Chq from the ECS a/c

• In PDC cases, Security PDCs undated: 4 equivalent to 3 EMI + 1 Blank

• In ECS cases, Security PDCs undated: 12 equivalent to 11 EMI + 1 Blank

Additional Documentation for Companies / Partnership firms as applicants

If the Companies or firms are borrowers then:

• Board Resolution from the company where company is a borrower as per PNBHFL format as approved by PNBHFL internal legal counsel on the company’s letterhead.

• The board resolution must be signed by a minimum of 2 Directors of the company

• The company common seal must be affixed on the board resolution

• In case the company is the owner of the property being mortgaged, Form 8 to be executed & submitted with ROC

• Resolution u/s 293 (1) (a) from the company where the said company is a Public Limited company or a Private Limited company which is a subsidiary of a Public Ltd company


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Parameter Features

• Partnership authorization letter (in original) specifying authorized signatories duly executed by all partners.

In cases where the seller of the property being mortgaged is a Company:

• Board Resolution from the company on company’s letterhead where the company is the property owner/GPA holder cum the seller authorizing the sale of the property & the representative signatory for executing the sale documents.

• ROC Search of the seller company to authenticate whether the proposed property for purchase is free from encumbrance.

• Partnership deed (registered) copy where the partnership firm is the property owner

• Partnership authorization letter (in original) specifying authorized signatories duly executed by all partners.

Note : Whenever a document is to be executed under the common seal of the company, it should be executed as under:

“ The common seal of M/s ABC Company Ltd. was hereunto affixed pursuant to a resolution passed by the Board of Directors at their meeting held on……………….(date) in the presence of Sh. XXX and Sh. YYY, two directors of the Company, who have affixed their signature hereto.”

Common Seal Of the company

Sd/- XXX.

Director

Sd/- YYY

Director


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Parameter Features

Guarantors

(as applicable)

Individual

• Personal Guarantee Bond duly signed by the Guarantor (stamped as per local state laws)

• KYC documents & Income documents of Guarantor (as applicable for applicants)

• Photograph (self-attested)

Corporate

• Corporate Guarantee Bond duly signed by the authorized signatory of the company (stamped as per local state laws)

• Board Resolution from the company where company is a borrower as per PNBHFL format on the company’s letterhead signed by minimum 2 Directors & company common seal.

7 SPECIAL PROGRAMMES FOR LENDING AND REPAYMENT PLANS:

These programmes are designed to enhance the eligibility of the applicants and align the same to the actual earnings and repayment capacity. The following surrogate programmes are allowed:

7.1 LIQUID INCOME PROGRAMME

This programme will apply to locations approved by Risk and will be intimated to branches time to time. This programme must only be applied to locations where the LIP vendors are vetted and approved by risk.

Particulars Norms

Purpose of the programme

To cater to applicants with the following features:

• Cash rich – to be vetted through LIP report

• Good existing asset base

Customer segment • Applicable for Self Employed Non Professional (SENP) and Self Employed Professional (SEP) applicants.


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Particulars Norms

Products eligible under LIP programme

• All products other than Residential Plot loans (RPL)

Minimum Income Norms

• Net profit after depreciation, interest and before tax of Rs 310000 p.a.

• There should not have been any cash losses (Net profit/loss + non cash expenses) in the last 3 years of business.


• Gross professional receipts in case of SEP customers to be at least Rs 1500000/-

• Minimum Sales Turnover for SENP customers to be at least Rs.4000000/-

Minimum loan amount • Rs 25,00,000/-

Maximum loan amount • Rs 100,00,000/-

Business continuity • Should have been in the same line of business for the last 5 years

Income Considered a. LIP assessed income to be limited to 70% of the estimated Net Profit after tax as per the LIP report provided by the PNBHFL appointed LIP vendor.

b. Apply a multiplier of 3.5 times to the reported Net profit after tax as per the ITRs and books of accounts. This Net profit would be the lower of the following:

i. Current year’s Net Profit after tax as per the audited books of accounts. ii. Average of the latest two years Net Profit after tax. iii.150% of the Previous Year’s Net Profit after tax.

c. Appraised income = lower of a & b above.

d. Depreciation as per books of accounts, Partner’s salary, Interest on capital and rent paid by business to applicants can be added to c above to arrive at the final income to be considered for loan eligibility calculation.

e. Other income can be calculated and added in the same manner as mentioned in section 3.1. Other income not to exceed 100% of ‘c’ above.

f. Income Considered for Loan Eligibility calculation = ‘c + d + e’

Eligibility Calculation Loan Eligibility calculated at a maximum FOIR of 60% of Income Considered (‘f’ above), subject to DW@ norms being met


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Particulars Norms

@ Maximum DW = Maximum FOIR + Maximum LTV – 10%.

This 10% can be reduced either in FOIR or in LTV depending on the case.The FOIR or LTV, independently, not to exceed the maximum limits prescribed for the product and customer segment.

Banking • Average Bank Balance for the last 12 months > 0.50 times the proposed EMI for LIP business


th and 25

th of the month.


Other Norms • Audited ITR and financials for the last 3 years required

• Tax audit reports for the last 3 years

• LIP to be done for a maximum of 2 firms or companies provided the two have separate setups and both the businesses must independently meet the minimum income / minimum turnover criteria. This has to be validated by the LIP vendor.

• Personal discussion (face to face) with the borrower is mandatory in all cases under this programme. The LIP vendor discussion with client would be in addition to the personal discussion.

• All other norms as per standard Product Features

7.2 GROSS TURNOVER PROGRAMME (GTP)

Particulars Norms

Purpose of the programme

To cater to applicants with the following features:

• High turnovers

• Good existing asset base

Customer segment • Applicable for Self Employed Non Professional (SENP) and Self Employed Professional (SEP) applicants.

Products eligible under LIP programme


Minimum Income Norms

• Net profit after depreciation, interest and before tax of Rs 310000 p.a.


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Particulars Norms

• No cash loss (Net profit/loss + non cash expenses) in the last 3 years.

• There should be no accumulated losses in the last 3 years.

• In case of SEP customers the minimum gross professional receipts of the applicant for the Previous Year (PY) should be Rs 15 Lacs.

• In case of SENP customers the minimum reported turnover of the applicant for the Previous Year (PY) should be Rs 40 Lacs.

• GTP product not applicable for businesses having a group turnover of more than Rs 50 Crores. These cases would be assessed through the normal loan eligibility programmes

Minimum loan amount • Rs 25,00,000/-

Maximum loan amount • Rs 200,00,000/-

Business continuity • Should have been in the same line of business for the last 5 years

Income Estimation a. Annual income to be arrived at by applying the “Industry Margin” (IM) specified for the applicants industry in the IM list for all industries which is maintained and updated on a regular basis by PNBHFL. The IM list which shows the current industry margins bifurcated for manufacturing, wholesale trading and retail trading is enclosed in annexure 19.

b. IM means the Profit before Depreciation, Interest and Tax (PBDIT) and is otherwise called the Gross Margin (GM).

c. IM / GM would be applied on the lower of the following: i. Current year’s Net Turnover as per the audited books of accounts. ii. Average of the latest two years Net Turnover. iii.150% of the Previous Year’s Net Turnover. Notes:

• Net Turnover – It is the Gross Turnover less, Sales Returns / Discounts.

• Any exceptional business transaction like a onetime sale, irregular income etc are to be excluded in the calculation of the Gross Turnover.

• In cases where the applicant’s business is a trading cum manufacturing business, and separate turnovers


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Particulars Norms

for the trading and manufacturing businesses are not available in the audited financials, the PNBHFL credit team would have to ascertain the proportion of sales from Manufacturing and trading business through in-depth personal discussions and a scrutiny of the financials. Based on this proportion of manufacturing vs trading business of the applicant, a weighted average margin would be applied as explained in the example below:

Example – Let us take a case where the total turnover of the applicants business is Rs 500 lacs. Now the applicant does not have a bifurcation of the Trading and Manufacturing business in his audited books of accounts. In such a case the PNBHFL team would do a detailed PD and scrutiny of financials to arrive at the percentage of business from trading activities and manufacturing activities. In this example we assume that the proportion arrived at by the PNBHFL team is 35% from trading and 65% from manufacturing. The industry margin to be applied on the total turnover of the business would be arrived at as detailed in the table below:

Business type

Turnover breakup

(arrived at by PNBHFL

credit team)

Industry

Margin

Margin

(Rs in

Lacs)

Explaination of the margin

working

Retail trading 35.00% 7% 12.25 (Rs 500 * 35% * 7%)

Manufacturing 65.00% 5% 16.25 (Rs 500 * 65% * 5%)

Total 28.50

Weighted margin 5.70% (Rs 28.50 / Rs 500)

d. Appraised Monthly Income = [ { (Net Turnover * IM) Less (Interest on CC / OD accounts) less (Tax paid) } / 12]

e. Other income can be calculated and added in the same manner as mentioned in section 3.1 Other income not to exceed 100% of ‘d’ above.

f. Income Considered = d + e

g. Clubbing of businesses is allowed subject to the following conditions being met:

i. In case of companies at least 51% share of the business is owned by applicants. ii. In case of partnership firms at least 75% profit share should be with the applicants.


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Particulars Norms

iii. In case of clubbing of businesses, the loan eligibility would be worked out by applying the IM applicable to the respective businesses on the share of turnover based on shareholding / profit sharing %age of borrowers.

Eligibility Calculation Loan Eligibility calculated with a maximum FOIR of 60% of Income Considered (f above), subject to DW@ norms being met

@ Maximum DW = Maximum FOIR + Maximum LTV – 10%. This 10% can be reduced either in FOIR or in LTV depending on the case.The FOIR or LTV, independently, not to exceed the maximum limits prescribed for the product and customer segment.

Banking • Average Bank Balance for the last 12 months > 0.75 times the proposed EMI


th and 25

th of the month.


Other Norms • Audited ITR and financials for the last 3 years required

• Tax audit reports for the last 3 years

• GTP assessment can be done for a maximum of 2 firms or companies of the applicants; provided the two have separate setups and both the businesses must independently meet the minimum income / minimum turnover criteria.

• In cases where more than 50% of the applicant’s business turnover is from a single customer, the Maximum loan amount would be restricted to Rs 50 lacs. This concentration of customers should be verified by the PNBHFL credit team through scrutiny of the financials and personal discussions.

• Personal discussion (face to face) with the borrower is mandatory in all cases under this programme.

• All other norms as per standard Product Features

7.3 LEASE RENTAL DISCOUNTING (LRD) PROGRAMME

Criteria Particulars


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Purpose and Eligible borrowers

• Allowing the borrower to raise funds against the future expected funds from property leased out by him.

• The funds may be used for meeting business/personal needs of the borrower.

• Applicable for Salaried, Self Employed Professionals and Self Employed Non Professional borrowers.

• Will not be offered to NRI / PIO customers

Products eligible under LRD programme


Maximum loan amount

• As per the product limits

Maximum loan tenure

• 10 years or balance lease period, whichever is less

Loan to Rental (NPV) ratio and Loan eligibility calculation

The following grid provides the eligibility calculations for different lease tenures.

Remaining lease period Eligible loan (%) #

Upto 3 years 85%

> 3 years and upto 5 years 80%



Loan amount eligible = Eligible loan (%)# multiplied by Net Present Value (NPV)*

Notes:

• #Eligible loan (%) = Percentage of the Net Present Value (NPV) * of the future lease rentals receivable for the

unexpired lease period.

• * Net Present Value (NPV) = This is the discounted present value of the future rentals and is net of Income Tax Deducted at source and Municipal Taxes. Discounting to be done at the applicable ROI.

Lessee • AA or above rated company (by CRISIL or ICRA)

• Company floated by a AA rated or higher rated companies / Public Sector Undertaking / Statutory body set up by the government


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• Indian Subsidiary of an MNC which is listed in its Parent Country.

• Private Ltd Company/Partnership/Proprietorship with Profit of minimum (Net Profit plus Depreciation claimed in Books of accounts) Rs 100 lacs in the Previous Two Financial Years

Lease Agreement related norms

• The lease period to be for a minimum of 3 years.

• Only registered lease deeds to be considered. A proper Rental Lease Agreement is proof of rental receivable, duly stamped as per the state government Stamp Act and registered in the office of the Sub-Registrar where the property is situated be obtained at the time of accepting the loan proposal.

• At least Three Rental Credits / Security Deposit / Advance Rent to be reflected in Bank Statement

• Copy of the lease agreement required and to be vetted by PNBHFL internal legal counsel.

Documentation and Repayment mechanism

The additional documentation required for LRD process are mentioned below There can be two alternatives: a. Hypothecation of rentals

• Hypothecation agreement for assignment of lease rentals to be signed between borrower and PNBHFL

• Tripartite Agreement between Lessor (Borrower), Lessee and PNBHFL

• In cases where the lessee is well reputed and is not willing to sign a Tripartite Agreement, an irrevocable power of attorney (POA) in favour of PNBHFL to be obtained from the borrower authorizing PNBHFL to receive / collect rent from the lessee. This POA to be brought to the notice of the lessee who should acknowledge the same.

b. Escrow account

• An Escrow account in the name of the lessor to be opened to facilitate the escrowing of rentals. The instruction on the account to allow transfer of funds only to PNBHFL.

• The Lessor to give a standing instruction to the bank to transfer an amount equal to the EMI amount from the Escrow account to the account of PNBHFL on a monthly basis.

• A letter from the lessor to the lessee, advising the lessee to deposit all the future rental payments into the Escrow account. Copy to be given to PNBHFL.

• A confirmation / acknowledgement from the lessee stating that the EMI would be deposited into the escrow


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account – copy of this letter to be marked to PNBHFL.

Property and LTV related norms

• LTV as applicable to the product for which LRD programme is being used would be applicable.

• Approved plan of the leased property to be taken and valuer to ensure that the construction is legal and as per approved plan. This is to ensure elimination of demolition risk. The valuation report for the leased property would be required from the PNBHFL empanelled valuer and to clearly mention demolition risks if any.

• An affidavit cum undertaking to be taken from the property owner / borrower declaring that the leased property has been constructed as per the sanctioned plan and the bye laws of the local authorities are not violated in the construction of the property.

• The leased out property should not be in an unauthorized colony unless the same has been regularized and development and other charges have been paid for the same.

• The leased out property should not be a property approved for residential use but being used for commercial

purposes by the lessor. A declaration to be taken from the applicant stating the approved usage of the leased out

property as commercial. Usage of the property / building should be as per the approved plan.

• 2 valuations would be obtained in all LRD Cases

Taxes related to the Leased property

• PNBHFL to ensure that all taxes relating to the leased property have been paid till date.

Security • Equitable Mortgage of the leased property or any acceptable alternate property in favour of PNBHFL

Guarantor • In case where the loan is given to a corporate the account is to be guaranteed by personal guarantee of the Promoter / Director in individual capacity.

Additional pre-sanction document

• Registered Lease agreement copy

• A copy of the TDS certificate to justify the correctness of tax deduction.

• Net worth statement of the lessor

• Bank Statements for a period of 12 months.

• Clear and marketable title in favour of the lessor required for the property given out on lease.

Legal documentation

• Legal documentation as rolled out by PNBHFL legal department to be adhered to.

Other Norms • All other norms as per standard Product Features


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7.4 TOP UP LOANS


Purpose For business, marriage, education, medical treatment or any other personal need.

Products applicable The following products are eligible for Top up:

• RHPL

• RHPLR

• RSCL

• RPCL

• HEL

• HIL

• NRPL In LAP against residential and commercial properties any increase in loan post full disbursement will be treated as an enhancement and not a top-up. For the enhanced portion the respective product parameters and underwriting norms for LAP residential or commercial, as the case may be, will apply.

Eligible Borrowers • Borrowers can be salaried or self employed and should have an existing loan running with PNBHFL.

• All the co applicants in the existing loan will have to be co applicants in the top up loan too.

• Top Up loans would not be offered to NRI / PIO customers. .

Maximum Loan Tenure

• Maximum tenure of the top up loan not to exceed 10 years or 120 months. AND

• Maximum loan tenure at the time of sanction of the top up loan cannot be greater than the outstanding tenure of the principal loan

Note – The maximum tenure may be extended, post disbursement, by upto 60 months over and above the 120 months

mentioned above in cases where there is an increase in tenure warranted on account of an interest rate fluctuation or

restructuring of the loan. Therefore in such cases the loan tenure may go upto 180 months

Security of the loan • The security of the principal loan on which the top up is extended will also cover the top up loan. In case PNBHFL needs additional security the same would be taken. The additional security would also be linked to the Principal loan.

• The Top Up would be booked under a different account number and principal loan would be linked to the Top up loan in the system and the security documents will be released to the applicants only on closure of both the


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loans.

• The principal loan and the Top Up loan will be cross-collateralised.

Repayment Track Record

• Top up can be given if the principal loan has a minimum vintage of 12 months.

• The principal loan should not have been delinquent over the last 12 months.

• All existing term loan account statements to be provided to check repayment track records.

• Loan closure statement must for loans matured within last 6 months.

• Bank statements reflecting the repayments for the last 12 months to be collected

Loan to Value The LTV and the value of the property considered for Top up loans is as described below:

LTV FOR TOP-UP LOAN ON RHPL, RSCL, RPCL, HIL AND HEL

Maximum combined LTV = 75% of the Market Value*

LTV FOR TOP-UP LOAN ON HIL


LTV FOR TOP-UP LOAN ON NRPL


Note:

* Market Value (MV) = Value of the property as assessed by the empanelled property appraiser. Stamp duty,

Registration charges etc cannot be added to the market value

Underwriting Norms

• While underwriting Top up loans, the entire income assessment would need to be done.

• The underwriting norms applicable for the LAP product for different customer segments, would apply for Top up loans.


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7.5 STEP-UP REPAYMENT PLAN


Purpose • To facilitate higher eligibility of loans to salaried applicants who are at a growth phase in their careers and have a high potential to increase earnings in the future.

• This product facilitates lower EMIs in the initial years and higher EMIs in the latter years as earnings are expected to grow.

Applicable to • Salaried only.

• Not applicable for employees of Pvt Ltd companies, Partnership firms, Proprietorship concerns and Trusts.

Products • Applicable to all products except LAP and RPL

Maximum loan amount

• As per the limits prescribed for the respective products

Minimum and Maximum loan tenure

• Minimum - 15 years

• Maximum – 20 years

• The loan tenor will be divided into 3 periods – Primary, secondary and tertiary period.

• Primary period – this is the initial 2 years wherein only interest payment is considered, thereby reducing the instalment amount. However, as in this period, only interest is paid there will be no principal reduction and therefore the loan amount outstanding at the end of the first 2 years would be equal to the loan disbursed.

• Secondary period – This is the 3 year period after the primary period wherein the normal EMI calculation would be done considering the entire original term of the loan.

• Tertiary period – This is the balance term of the loan wherein the EMI is calculated on the amount outstanding at the end of the secondary period for the tertiary period.

• Negative amortization not allowed.

Income assumptions

• A 5% income increment assumption is considered for the tertiary period.

FOIR • FOIR recorded in the Credit Appraisal Memo shall be as per the Primary period which would consist of interest only.


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Top up loans • Not allowed under this programme

Minimum gross monthly income

• >= Rs 25000/- for salaried

Other norms • All other norms as per standard Product Features

Calculator • Available in Annexure 13

Launch of SURF This plan would be launched only when PNBHFL has a system in place which can track the repayments under this plan automatically.

7.6 STEP-DOWN REPAYMENT PLAN


Purpose • This repayment facility is provided in cases where the income is going to decrease after a certain period of time.

• This decrease is usually due to one of the applicants retiring before the maturity of the loan.

• The objective is therefore to recover the maximum principal amount in the initial years when the income levels are higher.

Applicable to • A set of applicants (at least one must be salaried) where one of the income earners retires before the maturity of the loan.

• Also pension income can be considered which leads to a tail period where the income earned is much lower than the initial period.

Products • Applicable to all products other than LAP and RPL

Maximum loan amount


Minimum and Maximum loan tenure


FOIR • Based on the initial EMI which will be higher.


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Top up loans • Not allowed under this programme

Minimum gross monthly income

• >= Rs 25000/-

Negative amortization

• No negative amortization allowed for any of the years.

Other norms • All other norms as per standard Product Features

Calculator • Available in Annexure 14

7.7 TRANCHE EMI – EMI UNDER CONSTRUCTION STAGE


Purpose • The purpose is to facilitate a repayment plan for those applicants who want to start early repayment of principal.

• It may so happen, especially in builder cases, that the disbursements may be in several tranches and therefore the borrower would have to pay interest on the partly disbursed loan for a long period.

• If the tranche EMI repayment plan is available to the borrower he can start his principal repayment at the partly disbursed stage and therefore start early amortization.

Products applicable • This repayment facility is available for all products where disbursement is done in tranches

Eligible Borrowers • This repayment facility is available only for Home Loans to resident Indians.

• This repayment facility can be offered to only those customers who are purchasing the property in PNBHFL approved projects and builders or self-construction cases where the construction period is more than 18 months.

Plan specific parameters

• The customer would be required to pay the first tranche EMI from the month following the month of first tranche disbursement. For the broken period the borrower would be required to pay Pre-EMI interest. The first tranche EMI would be computed based on the disbursed amount for the entire tenure of the loan.

• At the time of disbursement of the second tranche, the EMI would be calculated on the amount disbursed in second tranche plus the principal outstanding of the earlier tranche as at the end of the month in which the second tranche disbursement is made. This EMI is calculated for the balance tenure as at the end of the month in which second disbursement is made. For the broken period the borrower would be required to pay Pre-EMI interest. The earlier EMI payment is stopped and the new EMI commences.

• This process is followed for all subsequent tranche disbursements.


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• Under this repayment plan, the EMI in the under-construction stage would be lower and would increase with each disbursement tranche.

Launch of Tranche EMI plan

This plan would be launched only when PNBHFL has a system in place which can track the repayments under this plan automatically.

8 BALANCE TRANSFER

Balance transfer refers to a loan product wherein PNBHFL takes over the loan of the customer from another Lender. BT can be done only on completed properties or approved builder projects (these builder projects may be under construction).

8.1 PRODUCTS APPLICABLE Balance transfers would be applicable for all products

8.2 APPROVED LENDERS The existing loan of the prospective borrower to be with any of the following approved lenders:

• Punjab National Bank

• HDFC Ltd.

• HDFC Bank

• ICICI bank

• LIC HFC.

• GIC Housing Finance Ltd.

• Gruh Finance Ltd.

• Dewan Housing Finance Limited

• Canfin Homes Ltd.

• HUDCO

• Sundaram Home Finance Ltd.

• State Bank of India and its subsidiaries

• Corporation Bank


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• Standard Chartered Bank

• Citibank

• HSBC

• Deutsche Bank

• Axis Bank

• Reliance Group

• Bajaj Finserve Ltd

• Any other approved lender

8.3 ADDITIONAL DOCUMENTATION REQUIRED FOR BT In case of a balance transfer from another lender the following additional documentation would be required

8.3.1 PRE-DISBURSAL DOCUMENTATION

• In BT cases normal documentation as in any other case would be applicable. The documentation mentioned in this section is in addition to the normal documentation.

• Bank statements for 12 months reflecting repayments of the loan being taken over OR Repayment Track record / statement for last one year showing repayments from the earlier HFC/Bank.

• Collect the Outstanding statement of the existing loan on the letterhead of the HFC/Bank containing the following: � Date � Applicant and/or co applicant names � Loan account number � Outstanding principal amount � Pre payment charges (if any) amount � Any other dues (if any) amount � Date on which the above amount must be prepaid

• Customer must submit proof of the list of documents held with his existing lender. This must clearly mention which documents are in original and which documents are photocopies.

• Customer to submit a letter to the builder/Society/Development Authority informing them of the transfer of loan to PNBHFL. An acknowledged copy of this letter to be submitted to PNBHFL.

• An undertaking from the customer to the effect that the original documents submitted with the existing lender would be collected and submitted within 20 days of the date of disbursement.


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• A letter of authority in a prescribed format to be given to PNBHFL authorizing them to collect the original property documents and mortgage release letter / no-dues letter from the earlier bank/HFC.

• An Irrevocable Power of Attorney in favor of PNBHFL empanelled lawyer for collection of original title documents from the existing lender. The POA has to be executed on stamp paper of the requisite value and to be duly notarized from a Notary Public. The format of the POA to be drafted by PNB HFL lawyer.

8.3.2 POST-DISBURSAL DOCUMENTATION IN BT CASES Following documents to be collected post disbursement.

• The receipt issued by the earlier HFC/ Bank on closure of the existing loan from the proceeds of PNBHFL disbursement.

• A mortgage release letter to be obtained by the customer from the earlier HFC/ Bank, stating no dues and release of mortgage on the property.

• Original title deeds as per the list submitted by the borrower on lender’s letterhead.

• NOC to mortgage in favour of PNBHFL, issued by the landowner, i.e. builder / society / development authority, wherever applicable.

• In cases where the previous HFC / Bank has created a registered mortgage / MOE /ROC charge on the property, the said charge would required to be cleared thru necessary documentation as advised by PNBHFL legal department.

8.4 OTHER PROCESS CHECKS IN BT CASES

• The existing loan must be at least 12 months old from the date of last disbursement.

• The repayment track record not to have any delays in payments.

• The repayment to the existing lender should have been done through normal banking channels

• PNBHFL to ensure that all property title documents as mentioned in the empanelled lawyers report are collected from the earlier lender.

• The product policy and underwriting norms of the product that is getting transferred is to be followed. For example – If a Home Loan (say RHPL) is getting transferred to PNBHFL, then the product policy and underwriting norms for that Home Loan product (RHPL) would apply and so on.

• All other documentation as mentioned in the documentation section for respective products and borrowers to be collected

9 BALANCE TRANSFER PLUS TOP UP Under this product the borrower transfers his loan with the earlier HFC/Bank to PNBHFL as mentioned in the section above. Along with a transfer of the loan the borrower is provided additional loan as a top up. The end use of the top up amount could be for any legitimate purpose as declared by the applicant.


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9.1 PROCESS TO BE FOLLOWED FOR BT PLUS TOP UP

• BT process as mentioned in Section 8 above to be followed for the transfer of the loan.

• Applicant to submit a declaration for the end use of the Top up loan amount.

• In cases where the BT is of a Home Loan, the maximum combined LTV (BT + Top up) to be capped at 75% of the Market Value

• In cases where the BT is of an NRP, the maximum combined LTV(BT + Top up) to be capped at 50% of the market value

• In case of a BT of a LAP loan (residential or commercial), the additional cash out over and above the BT amount will be assessed as per the LAP norms for residential or commercial LAP as defined in section , as the case may be. This additional cash out will be treated as an enhancement and not a top-up. Therefore no separate LTVs are defined for the same. The same LTVs as in the LAP product would apply.

• BT of Plot loans do not qualify for top-ups. However, if the borrower requires a loan to construct on the plot of land then the BT of a plot loan can be given.

• The applicants eligibility based on his current income to be established as per the PNBHFL norms.

• The Top up amount to be disbursed only after the original title documents and NOC (Loan closure letter) have been collected from the earlier lender.

• Top up loans to have a distinct loan account number as they do not qualify as Home Loans and no IT benefit accrues on them. Therefore, a Top Up loan would be booked separately and would have separate loan documentation.

• The Top up loan to be linked to the main loan so as to ensure cross collateralization of the security. This is to ensure that the customer pays all his dues before the release of property documents.

• BT plus Top up will be offered only for completed properties

10 SELLER BT Under this product the seller of the property has a loan running with another lender. Here the seller requests the borrower to pay his existing loan outstanding with the other lender from the disbursement proceeds from PNBHFL. The process to be followed in such cases is as follows:

• Get seller to sign a tripartite agreement (TPA) and power of attorney (POA) – as drafted by PNB HFL lawyer - authorizing PNBHFL to collect the seller’s property documents after settling dues with his financier. The TPA would be between the seller, buyer and PNBHFL and should cover the following points:

o The seller has an existing loan with another lender and that he is agreeing to sell his property to the borrower. o The seller seeks to close his existing loan with the other lender through the disbursement proceeds of the borrower’s loan from PNBHFL. o The seller agrees to ensure collection of the original documents from his lender on closure of the loan and submit the same to PNBHFL within

20 days from the date of disbursement. o The seller agrees that he shall issue an irrevocable Power of Attorney in favour of the authorized representative of PNBHFL thereby

authorizing him to hand over the cheque/draft to his existing lender and collect all the original title papers with respect to the immoveable property concerned.

o That if required the seller shall be physically present to hand over the payment and for release of the title papers from his existing lender.


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o That if for any reason the seller’s lender refuses to release the title documents to PNBHFL, the seller and borrower shall both be liable to repay the loan amount disbursed for BT.

o Any other points as advised by lawyer of PNBHFL.

• Disbursement would be in favour of seller’s financier

• The registration of the property in favour of the borrower must have happened prior to the date of disbursement or must happen on the date of disbursement. The PNBHFL lawyer must visit the registrar’s office and collect the registration receipt and also travel to the Seller’s financier’s office to close Seller’s loan.

• PNBHFL representative along with the seller, to handover the disbursement cheque to sellers financier and collect the original title documents.

• Seller also to obtain the NOC to mortgage in favour of PNB HFL from the builder / society / development authority as applicable.

• Once documents have been collected, balance payment is released in the name of the seller.

• No top-ups in Seller BT cases

• Seller BT would apply only on completed properties.

11 LOANS TO NON-RESIDENT INDIANS

NRI Definition For the purpose of PNBHFL policy an Individual would be classified as an NRI if he satisfies the following conditions: i) He / she is an Indian Citizen holding a valid Indian Passport ii) He / she stay outside India for the purpose of employment / carrying on business under circumstances indicating an intention for an uncertain period of

time PIO Definition PIO means a citizen of any country other than Bangladesh and Pakistan, if a. He / she at any time held an Indian passport

OR b. He / she or either of his / her parents or grand-parents was a citizen of India by virtue of the Constitution of India or the Citizenship Act 1955 (57 of

1955) OR

c. The person is a spouse of Indian citizen or a person referred to in (a) or (b) above


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11.1 PRODUCT PARAMETERS AND UNDERWRITING NORMS This section covers the product parameters and Underwriting Norms for NRI loans.

11.1.1 BORROWERS This product is only applicable for salaried NRIs and PIOs. The borrower must be getting salary by cheque. Please also note the following points in relation to who can be the considered for funding:

• Greencard holders can be considered for funding only if they have and submit their PIO card alongwith.

• PIOs can be either resident in India or outside India. PIOs if resident in India, would be appraised as a Resident Indian. PIOs if resident outside India, would be appraised as NRIs.

• For NRIs, if it is observed from the work permit that they are located abroad on a temporary assignment from their companies and are likely to return to India within a year, their loan eligibility should be assessed based on the lower of their current salary abroad or their Indian Salaries. The loan would be processed as that of an NRI.

• Note of Caution: There are a large number of Nepalese, Bangladeshis, Sinhalese, Bhutanese etc. who reside in India. The Sales Team and the Underwriting team should exercise adequate caution. It is possible that they may declare themselves as Indians and even produce at times some ID proof. If during the course of discussions with the borrower, it is observed and found out that the borrower is not an Indian, the loan should not be funded.

11.1.2 APPLICABLE PRODUCTS

An NRI can be offered all products under this Policy except Loan against Property and Lease Rental Discounting.

11.1.3 PRODUCT SPECIFIC PARAMETERS The product specific parameters are the same as for resident Indians under different products. Depending on the product applied for by the NRI borrower, the product specific parameter for that product would become applicable.

11.1.4 UNDERWRITING NORMS This section contains the underwriting norms for Non-Resident Indians

� MINIMUM QUALIFYING INCOME


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• Minimum qualifying income = USD 2500 per month

• The abovementioned income is the gross income of the applicants prior to any deduction of tax

• The abovementioned income is monthly income. Note: For NRIs employed with Merchant Navy, the following norms would apply: No Loans to cadets would be given For Officer Engineers and Officer Navigators : A. Calculate the number of months the borrower had sailed through the CDC / passport (for last 2 years). We would get the average number of months he had been sailing. B. Look at the latest contract and get the monthly income from there..i.e if it is a 6 month contract, we divide the income by 6 and get monthly income. C. Compute annual income as A * B. D. Then get the monthly income to be considered as A*B / 12. This figure would be used for eligibility workings. � INCOME CONSIDERED

The components of income to be considered are mentioned below.

• Items regularly reflected in salary slip / monthly salary certificate.

• Bonus � YEARS IN EMPLOYMENT ABROAD

• The number of years in employment abroad = Min 1 year

• Total years of experience = Min 3 years � MINIMUM AGE OF THE BORROWERS

• If the borrowers income is considered for eligibility – 23 Years at the time of origination of the loan.

• If the borrowers income is not considered for eligibility – 18 Years at the time of origination of the loan. � MAXIMUM AGE OF THE BORROWERS


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• If the borrower’s income is considered for eligibility – 60 Years at the time of maturity of the loan • If the borrower’s income is not considered for eligibility and the borrower is the property owner – 70 years at the time of maturity of the loan

• Age can be more than 70 years at the time of maturity of the loan only if the following two conditions are fulfilled:

o Take declaration from customer who will cross 70 yrs stating who the legal heirs are. o All other legal heirs to be co applicants or NOC for creation of mortgage along with a declaration from all legal heirs stating that they are

aware of this charge being created in favour of PNBHFL required. � MINIMUM QUALIFICATION

The salaried borrower whose income is the main income must be at least a graduate. � FIXED OBLIGATION TO INCOME RATIO (FOIR)

FOIR = Fixed monthly obligations including the monthly instalment of the PNBHFL loan under consideration divided by the eligible gross monthly income considered for the borrowers. Maximum FOIR = 60%

� INSTALMENT TO NET SALARY RATIO

INSR = Fixed monthly obligations including monthly instalment of the PNBHFL loan under consideration divided by the eligible net monthly income considered for the borrower. Maximum INSR = 70%

� ELIGIBILITY CALCULATIONS

Loan amount eligibility would be calculated primarily based on the FOIR, INSR and LTV parameters applicable to the category of salaried applicant.

11.1.5 PROCESSING FEE CHEQUE

The processing fee cheque to be issued by the NRI from his / her NRE / FCNR / NRO / NRNR accounts or as may be permitted by RBI from time to time.


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11.1.6 POWER OF ATTORNEY

The NRI needs to appoint an individual resident in India as his POA holder. This person could be a friend or relative of the NRI. The co-borrower in the loan can also be a POA holder. This POA holder would be the person with whom PNBHFL would liaise with for various matters related to the loan application of the NRI borrower.

11.1.7 APPROVED LIST OF COUNTRIES

• United States of America

• United Kingdom

• Canada

• United Arab Emirates (Dubai, Sharjah, Ras Al Khaima, Ajman, Abu Dhabi, Ummal Quain, Fujairah)

• Kingdom of Saudi Arabia (Riyadh, Jeddah, Dammam, Al Khobbar, Jubail, Yanbu, Abha, Hofuf)

• Kuwait

• Bahrain

• Sultanate of Oman

• Qatar

• Singapore

• Hong-Kong

• Brunei

• South Africa

• Germany

• France

• Italy

• Malaysia

• Japan

• Australia

• New Zealand


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11.1.8 MODE OF REPAYMENT The repayment of the loan would be done from the NRE / FCNR / NRO / NRNR accounts through Post Date cheques or Electronic Clearing System.

11.1.9 DEDUPLICATION CHECK

Mandatory for all applicants

11.1.10 CREDIT BUREAU CHECK

Mandatory for all applicants

12 LOANS TO NON-INDIVIDUAL ENTITIES – PRODUCT PARAMETERS AND UNDERWRITING NORMS This section details out the policy of PNBHFL for Non-Individual Entities.

12.1 BORROWERS

The following type of entities can be accepted as borrowers

• Partnership firm – with key partner(s) and partner(s) having a majority share as the co-borrower(s)

• Private Limited Company – with key director(s) and shareholder(s) holding majority shareholding as the co-borrower(s)

• Closely held public limited company – with key director(s) and shareholder(s) holding majority shareholding as the co-borrower(s)

It may be noted that in cases where the partner / director is the main applicant, the corresponding non-individual entity can become a co-borrower. There could be cases where the private limited company or a closely held public limited company is made a co-applicant in a loan where the property is in the name of the Director / Shareholder. In such cases, it must be ensured that the Main objects or Other objects in the Memorandum & Articles of Association of the company has a clause allowing the company to avail loans for properties owned by its Director / Shareholder. The non-individual entity could be a professional entity (offering professional services) or a business entity (in the business of manufacturing, trading or providing other business services).

12.2 APPLICABLE PRODUCTS


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All products that are covered in this policy would be applicable

12.3 PRODUCT SPECIFIC PARAMETERS

The product specific parameters are the same as for Individuals under different products. Depending on the product applied for, the product specific

parameter for that product would become applicable.

12.4 UNDERWRITING NORMS The non-individual entities whose income is being considered for loan evaluation should have been in the business for at least 5 years. All other

underwriting norms applicable would be the same as per norms mentioned for Self Employed Non-Professionals. The majority shareholding director(s) or

the key partner(s) to fulfill the qualifying norms that are applicable for individual SENP borrowers.

12.5 DOCUMENTATION

The documentation applicable for non-individual entities is mentioned in the documentation in section 6.

13 PROPERTY APPRAISAL

Property appraisal forms a critical part of the entire loan appraisal process and PNBHFL therefore stresses on adherence to the best practices on valuation as mentioned in the sub-sections hereunder

13.1 EMPANELMENT OF PROPERTY APPRAISERS All the property appraisers at all locations must be empanelled by PNBHFL as per the vendor empanelment process mentioned in the PNBHFL process manual.

13.2 REQUEST FOR PROPERTY VISIT

The request for valuation must be sent in the format as mentioned in Annexure 9

• Valuation request to be filled out by the Credit ops officer at the branch.

• The valuation request must be forwarded to the empanelled appraiser in such a manner as to ensure equal distribution of cases.


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• In case, there are only one or two empanelled appraisers for a small location, rotation policy to be followed basis Application reference number sequence or Loan account number sequence.

• For Hub locations, enroll at least 3 agencies with no agency getting more than 45% of the total number of cases.

• In cases where 2 valuations are required, both to be fired simultaneously and to carry the same enclosures.

13.3 PROPERTY VISIT BY THE EMPANELLED APPRAISERS

• The empanelled appraiser must ensure that the property is being visited only after being provided with a sanction plan. Any deviation on the same must be reported and approval for the same must be taken as per the property deviation matrix in Annexure 2. The onus of correct identification of property lies solely with the empanelled appraiser.

• In the case of a flat or an independent bungalow in a society the possession of share certificates and the possession certificate by the present owner could be used in place of a sanction plan. This however, would be a location specific deviation from policy and must be marked as a deviation in the property deviation matrix in Annexure 2.

• For locations where the property is on the topmost floor one could check the concerned Municipality and conduct a “Municipality Search” to get the details of the map available from their records. The Municipality search will confirm the presence of a sanctioned plan and the number of floors sanctioned floors.

• Approved plans of the project to be provided for inspection.

• The site must be identified using a route map provided or by means of the boundaries mentioned. It is the property appraiser’s responsibility to ensure the cross verification of the property address with that mentioned in the “Valuation Request Form”.

• Detailed measurements must be taken at site and the components such as Floor area, Built-up area must be mentioned on the Valuation report.

• The empanelled appraiser must also collect the information about the saleable area of the said unit.

• It is the empanelled appraiser’s responsibility to cross verify the prevailing market rates for the said property and maintain records of the feedback about the rates from independent sources.

• The appraiser must take at least 3 photographs of the property. One from the outside detailing the approach and the exterior of the house property and 2 from the inside. The inside photographs must be taken in a representative manner of the property.

• The photographs must be reproduced on the report in colour, so as to give a clear view of the property.

• In cases of valuation of a flat in an apartment building, the stage of construction confirmed in the valuation report, must be for the entire building and not for the particular flat / unit alone.

• The following observations must be noted by the empanelled appraiser visiting the property.


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Tenanted property - In such the valuation report must contain a break-up of the area tenanted and that which is not.

� Locked Property - in this case no valuation must be provided in the report. � Horizontal Deviation - The deviation from the sanction plan must be provided as a percentage of the area sanctioned. � Vertical Deviation - Extent of deviation to be mentioned even if the unit being visited does not fall in the deviated portion. � Structurally unsafe buildings - Any major structural fault of the property must be made known in the report. � Court orders or public notices pasted on the building - The appraiser must get the full detail of any pending legal issues with the property and

provide the details in the report. � Property located in sensitive areas. � Property whose location is difficult to identify and those with poor property numbering. � Builder or customer refusing to give the site location and requesting the Technical Agency personnel to meet him at another point.

• The empanelled appraiser must not entertain any calls which deals with the final valuation of the property visited. Any such call on receipt must be reported into the relevant Branch head.

13.4 VALUATION REPORTING

• The empanelled appraiser must ensure the proper and timely submission of valuation reports.

• Any delays due to non availability of the customer/ caretaker/keys must be reported to the point of origin on a daily basis.

• The property appraisal report must be delivered in the standard format as mentioned in Annexure 11

• The address cross checked to always contain the area PIN code.

• The four boundaries to be properly mentioned either by the present owner’s names or by the present plot / premises number or by the road.

• The empanelled property appraiser must provide with a sufficiently detailed road map of the property as a part of the report.

• The empanelled property appraiser must ensure the correctness of saleable area and land area mentioned in the report.

• For amalgamated property the correctness of the available measured area must be cross verified with the area mentioned in the legal docs so that errors arising from incorrect assumptions may be deleted.

• The inclusion of the value of the car parking space must be mentioned separately and only after proper confirmation. Common space being sold as car parking area and being included in the valuation is not acceptable.

• The cost of construction mentioned in the report must be standardized as per the prevailing rates of construction and additional values must be mentioned separately. For example , in case the prevailing standard cost of construction is Rs 800 /- per sft but the suggested rate per sft is 900/- per sft then the report to mention that the cost of construction is Rs 800/- and the cost of additional finishes is Rs 100/- per sft.

• No additional value to be included for furniture and non permanent fixtures into the cost of construction.

• The area to be considered should always be that which is sanctioned and allowed as per the sanction plan provided.

• In case of valuation of attached terrace the standard practice should be to value it as a percentage of the flat area ( ie Open terrace on the same level must be valued at 33% of the rate considered for the flat).

• Delays in site visit, if any should be immediately made known to the respective single point of contact.

• In case the customer is not available or is not contactable the request form should be returned with the comments within 48 hrs.


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• The empanelled appraiser must ensure the value of property derived should not be made known to any person over telephone except in the case of a query raised from the concerned PNBHFL credit manager.

• The TAT for site visit and the submission of the valuation report is 48 hours.

13.5 VISIT BY THE PNBHFL TECHNICAL MANAGER The Technical manager will do a property check in all cases where the disbursement is done in a single tranche. In other cases, where the disbursement is done in multiple tranches, he / she will do the property check, once before the first disbursement and once before the final disbursement. In locations where there is no technical manager, these visits must be done by any other incumbent. The purpose is to check the existence of property and correlation with the property photographs.

14 TYPES OF PROPERTIES In order to ensure secure lending it is vital to understand the types of properties and distinguish between acceptable and non acceptable properties.

14.1 ACCEPTABLE PROPERTIES

Funding must be restricted to the following types of properties which are categorized under acceptable properties.

• RCC Framed Structures

• Load Bearing Structures

14.2 UNACCEPTABLE PROPERTIES

The following types of structures are not to be financed:

14.2.1 KUCCHA STRUCTURES

These are structures made of mud walls or mud bricks with roof of tin or asbestos or Mangalore tiles or country tiles.


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14.2.2 SEMI OR HALF PUKKA STRUCTURES

This is usually a load bearing structure, wall made with brick or stone with mud structure without RCC slab

15 AREA CALCULATION MEASURES

15.1 CARPET AREA

This is the usable area of the house. The carpet area is effectively the area bounded by the internal walls of the house

15.2 BUILT UP AREA

This is the area of the house as measured by the external dimensions of the house; in short; the Carpet Area plus walls. The general thumb rule is that built up area is usually 20% more than the carpet area

15.3 SUPER BUILT UP AREA

This area includes the common spaces of house like lifts, lobby, building staircases etc. Super built up areas can be as much as 35% more than usable carpet area

15.4 AREA USED FOR VALUATION

All valuations to be based on Super Built-up Area only.

16 PROPERTY CROSS AUDIT

• The technical officer in the Hub / State branch to conduct a quality assurance through cross-valuations for a minimum of 5% of the total number of valuation reports for the month using the prescribed audit format

• The mix of reports used for audit should be representative of the cases being done in the location. All the types of cases must be included in the audit ie Home Loan, Loans against property, BT and others.


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• Feedback of basis of valuation must be sought from the two appraisers in case the valuation reports have a variation in excess of 15% of the lower value due to difference in rate considered. In case the feedback provided by the appraiser is insufficient or erroneous, that particular agency must be intimated about the deviation for corrective action.

• Valuation agency will be terminated if found to be having a consistent high error rate and excessive valuation. The process will be owned by the Technical heads at State Branches with the Credit Ops Executive being responsible for the data entry.

17 LEGAL APPRAISAL - GUIDELINES

This section details the guidelines to be followed for empanelment of panel advocates for the legal appraisal of the property and the concise legal appraisal process to be followed during the preparation and submission of the legal opinion on the property

17.1 PROPERTY PAPER SUBMISSION

• The borrower must submit the preliminary property documents as per the indicative list given by PNBHFL along-with a letter acknowledged by the registrar for pending documents if any.

• The copies of the property documents are then to be forwarded to the empanelled advocate of PNBHFL for the location for perusal.

17.2 PROPERTY TITLE SEARCH

A search of the property in the sub-registrars records is conducted for 13 years or more as the case may warrant validating the flow of titles for the number of years required or as mandated by the panel advocate.

The title search report should not be more than 30 days old at the time of disbursement of the loan.

17.3 PROPERTY TITLE OPINION

The panel advocate would then peruse the title search report and the other property documents that are provided to him/her and submit a legal opinion on the property title. The report will be submitted in the format prescribed in Annexure 12. The report must contain the following:

• The list of documents perused

• The summary of the flow of titles and how it came to be owned by the borrower.


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• The list of documents to be collected in order to enforce an equitable mortgage.

• The list of documents must be categorized as critical (Must have) and non-critical (Nice to have) documents.

• The list of documents must also clearly mention whether the document is to be collected in original or a photocopy of the same is to be submitted.

• The report should clearly state the stage at which the documents are be collected – Pre disbursement, Over-the-counter or Post disbursement stage.

• The report should clearly state the title owners of the property

• The report should clearly state whether the property has a clear and marketable legal title.

17.4 COLLECTION OF PROPERTY DOCUMENTS

All the documents that are mandated by the panel advocate would be collected by PNBHFL and any variation to be vetted / approved by the panel advocate or the authority mandated by PNBHFL as mentioned in Annexure 2.

17.5 LEGAL MANUAL

PNBHFL would provide the Legal manual for the each location which is to be followed by the panel advocate for respective locations.

18 VERIFICATION - GUIDELINES

18.1 FIELD INVESTIGATION – FI Field investigations play an important part in credit decisions. FI is mandatory in all cases. FI is to be conducted at residence and workplace of the applicants. The broad guidelines for field investigation are mentioned below: • In case of referred or negative FI – Case to be either rejected or overridden as per the FI override matrix in Annexure 3. • The cases where overrides are done must contain justifications that mitigate the risk highlighted by the referred/negative FI. • The following are some of the triggers that should be checked to decision the verification report.

S. No.

CAUTION TRIGGERS IN FI


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1 Applicant is not the owner of the business 2 No assets seen in the office. 3 No entry allowed inside the office. 4 Office has less than 5 employees 5 Mismatch of designation on application form & verification. 6 If the applicant has been met during verification & there is a mismatch between age/date of birth as mentioned in application

form and as told to the verifier. 7 Mismatch in number of years at employment as mentioned In application form & as told to the verifier by the applicant. 8 For applications from professionals like CA/ Doctors / architects etc - the Office space as indicated in the BV should be at least

150 Sq feet 9 Mismatch in name & address of employer mentioned in the application form & as found out during verification. 10 Applicant is staying as a paying guest/bachelor 11 Applicant does not stay here/shifted. 12 Mismatch in no of years at current residence Mentioned in application form and found in Verification 13 The applicants house is below a middle class locality 14 The area of the rented house is less than 600 sq feet or Ibhk 15 Negative Neighbor report

18.2 TELEPHONIC INVESTIGATION

Telephonic verification establishes the contactability of the applicants and is mandatory in all cases.

The following should be checked during the Tele-verification: • Existence - The number is the applicant’s residence / office number. • The details of the person spoken with - for a residence TVR the person should be a family member. For the office TVR the person should be working

in the same organization. • Address confirmation - The address at which the phone number is installed. This address should be the same as the address (office / residence! given

in the application form. • Ownership confirmation - Details on ownership of the residence should be taken - this should be the same as that given in the application form. For

self employed applicants the ownership details of the office premises should also be taken. • Tele-verification report must contain information on the no of attempts made to complete the Tele-verification report.

18.3 CREDIT BUREAU REPORT


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It is mandatory to get the credit bureau report of all the applicants to the case. In case of corporate applicants also the credit bureau report is mandated; however; the credit manager at the Hub may exercise his best judgement and waive the same based on mitigants to the case. The waiver must be marked as per the authority matrix mentioned in Annexure 1

18.3.1 FIELDS TO BE CAPTURED FOR INPUT The following fields to be input in the credit bureau site in order to generate the report.

• NAME Enter the complete name as it is written not only in application form but also in the PAN Card or past repayment tracks check the spelling with ID Proof. Never enter only initials and try to find the complete name. Most of the government documents have applicant's complete name written in the document. Also ask for complete name on app form

• Date of birth DOB should be mandatorily be checked with the DOB proof submitted and also with the income-tax returns if available.

• Income Tax ID (PAN #) This is one of the few unique identifiers and ensures sure catches. Almost 100% of customers will have Pan #. Pan # is mandatory information for any loan.

• Passport # & Voter's ID Passport # should surely be entered wherever available as this is also one of the unique identifiers.

• Telephone #s Enter all the telephone #s not only as per the application form but also in the residence or office proofs as provided.

• Addresses Not only enter the address as written in application form but also validate the same from telephone bills, residence/office proofs, passport/pan copy or any other document.

18.3.2 INTERPRETATION GUIDELINES FOR CREDIT BUREAU REPORTS PNBHFL, as a process, does a Credit Bureau check for all applicants and co-applicants. CREDIT BUREAU reports give details of other loans availed by the applicant and co-applicant. At times, the repayment track record on the other loans or credit cards held show defaults in certain months. This section gives guidelines for interpretation of Credit Bureau reports.


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• Credit Bureau Score :

The Credit Bureau reports give a score for every customer. The credit bureau score gives an overall perspective of the strength of the past performance of the customer. As a general rule, if the score is greater than 800, the performance is considered good. In such cases, the Hub Underwriter would review the track records in the individual reports and decide whether to take the case ahead or not.

• Interpretation of CREDIT BUREAU reports relating to Credit cards:

If the credit bureau score is less than 800, then the interpretation grid shared in this section should be used. For different default levels, the authorities specified in the grid should review the case and decide. In case the CREDIT BUREAU report reflects defaults in repayments related to a credit card, subject to other terms and conditions mentioned hereunder, the default can be waived as per the following matrix: Delinquent and / or Write off cases:

Overdue Amount Mitigants Approving Authority

<=Rs 25,000/-

Clean RTR => 12 mths of any other unsecured loan or credit card

or Clean RTR of >= 18 mths of any other secured loan

or Documentary evidence of delay or write-off due to any service dispute on account of incorrect billing by the credit card company.

HU and above (max 1 card)

>25,000 but is <= Rs.50,000

Clean RTR => 18 mths of any other unsecured loan


HUH and above (max 1 card)


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> Rs.50,000

Clean RTR => 18 mths of any other unsecured loan



NUH and above (max upto 3 cards)

Notes:

1. If the applicant has no other clean track record, the case to be put up for approval to the NUH or above. 2. If the applicant has more than one write off / delinquent card, the decision on the loan should be at NUH and above level. 3. Any amount overdue and written off more than 3 years ago to be ignored. 4. In write off cases, the repayment track record mitigating the write-off should pertain to a period after the write-off was done. E.g. if the write off of

Rs. 20000 happened on 1st January 2010, the mitigating repayment track record should be for 12 months after 1

st January 2010.

• Interpretation of CREDIT BUREAU reports relating to Loans:

a. Delinquent Cases: Delinquency Stage Number of times delinquent Approving Authority

Not more than 2 times in the last 12 months and never in 30 dpd HU and above < 30 DPD

More than 2 times in the last 12 months and never in 30 dpd. HUH and above

Not more than once in the last 12 months and never in 60 dpd HU and above

Not more than twice in the last 12 months and never in 60 dpd HUH and above 30 – 59 DPD Not more than 3 times in the last 12 months, but never in 60 DPD

(To be accompanied by another clean track record on LOAN for 12 months)

NUH and above

60 – 89 DPD Not more than once in the last 12 months and never in 90 dpd (To be HUH and above


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accompanied by another clean track record on LOAN for 18 months) Not more than twice in the last 12 months and never in 90 dpd (To be

accompanied by another clean track record on LOAN for 18 months) NUH and above

90 DPD + Loan not to be done CRO and above can approve

an exception, if satisfied with the overall merits of the case

b. Write-off cases (Unsecured Loans) :

Overdue Amount Mitigants Approving Authority

<=Rs 5,000/-



HU and above

>5,000 but is <= Rs.10,000



HUH and above

> Rs.10,000



NUH and above

Notes:

1. If the applicant has no other clean track record, the case to be appraised at the NUH or above level for approval. 2. If the applicant has more than one write off / delinquent card, the loan should be decisioned at NUH and above level. 3. If there is a write-off in a secured loan the approval can be given by NUH and above levels 4. Any CREDIT BUREAU overrides, not covered in the grid above, can be approved by levels of NUH and above based on the merits of each

individual case.


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18.4 REFERENCE CHECKS

Reference checks with the references provided in the loan application form would be done. Some of the usual questions covered in reference checks are as below:

• Relation with the applicant – Business / personal. • Length of the relationship. • If the relation is personal – the feedback of the applicant on the personal aspects of the applicant. • If the relation is a Business one – What is the nature of the relation? What is the quantum of the supply or service in monetary terms? What is the

feedback on the official behavior in terms of professionalism and payments? • Any other feedback.

18.5 FCU (FRAUD CONTROL UNIT) - AGENCY VERIFICATION

This unit will conduct the following activities through an external Fraud Control Agency.

• Screening and sampling of application forms, income documents, property papers and other relevant documents as may be identified from time to time.

• While screening, suspicious triggers are looked for by the agency representative and documents identified for sampling. Photocopies of the document are handed over to the agency representative for fraud check.

• The concerned file application / document sampled are stamped as “FCU Sampled”.

• Sampling percentage would be 5% of all the cases screened on a monthly basis (or earlier depending on the business volumes).

• The sampling percentage may be revised by the Risk department as necessary. Factors which could affect the decision on sample size for a branch could be its delinquency/Non Starters/recurring FCU findings.

19 PROJECT APPROVAL AND DEVELOPER APPROVAL - GUIDELINES

As a policy no apartment can be funded if the project as a whole is not approved. The project should be developed by an approved developer. Following guidelines would be applicable:


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19.1 DEVELOPER APPROVAL GUIDELINES

• The developer must have a minimum of 5 years of experience in the real estate industry.

• The Developer should have completed the following minimum number of units

NCR / Mumbai - 200 units completed and delivered All other existing locations - 100 units completed and delivered

• The Developer should have at least 2 of his projects approved from other housing finance lenders.

• The total exposure on all the projects of the developer not to exceed 5% of the portfolio.

• Developers not meeting the above guidelines would be evaluated based on the merits / background strength of the group.

Project Approval Process Flats and bungalows in all projects developed by approved developers would be eligible for finance. The terms and conditions for financing of properties in such projects is as given below.

• Developer Approval is a pre-requisite for project approval. While presenting the project for approval, if the developer is not approved, the Developer approval process to be simultaneously completed. The table below gives the project approval authorities.

• The property related papers for the project, to be collected to process the project for approval.

• Legal verification of the project and a valuer visit to the project to evaluate the project will be carried out before each project approval.

• A separate legal appraisal or technical evaluation of each unit in the project will not be done. The legal appraisal would be a one-time legal appraisal, before approving the project. Technical evaluation would be done once in 3 months for the project and the valuer would give the progress of construction along with the current market rate.

• The number of cases done in each project should not exceed 40% of the total number of units in the project.

• The developer would be required to sign a tripartite agreement with the customer and PNBHFL in all builder under-construction cases. The developer and project approval formats are given in Annexure 4

Developer / Project approval authorities

The Developer and project approval authorities are as given below:

Sl. Description Approval Authority


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No.

1. Developer Approval National underwriting head

2. Project Approval Hub underwriting head Special Process for select Category A builders: For select Category A builders (as jointly approved by the Managing Director, Chief Risk Officer and Head – Sales and Marketing), project approval can be done in the following manner. This is proposed to be in line with the market, wherein it has been noted that some of the Category A builders do not part with the project legal papers for their internal reasons.

• The builder is jointly approved by the MD, CRO and the Head – Sales and Marketing.

• The project that must be approved for funding retail loans is identified.

• PNBHFL lawyer, along with an officer of PNBHFL visits the office of the builder and checks the legal documents there. While the documents are being perused, PNBHFL lawyer, takes all notes of all the relevant points. PNBHFL lawyer then prepares a legal title certification report for the project. The lawyer also undertakes a search at the office of the sub-registrar and provides a title search report.

• PNBHFL valuer, along with an officer of PNBHFL visits the office of the builder and checks the approved plans for the buildings in the projects. He makes the relevant notings. Post that, the valuer conducts a site visit of the project. Based on the site visit and the perusal of plans in the office of the builder, the valuer prepares a report and submits it to PNBHFL.

• Based on these reports from PNBHFL lawyer and PNBHFL valuer, the project is jointly reviewed and approved by the MD, CRO and Head – Sales and Marketing.


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20 ANNEXURE 1 - SANCTION DEVIATION AUTHORITY GRID

SANCTION DEVIATION AUTHORITY GRID

Note: In any case where there are more than one deviation and the authority levels are different for the deviations taken then all the deviations have to be approved by the highest authority within those deviations.

DEVIATION LEVELS

L4 - HU L3 - HUH L2 - NUH L1 –CRO and

above DEVIATION CODES AND DEVIATION DESCRIPTION

Max 4 Max 6 Max 8 No limit

FI/ CIBIL/Dedupe/FCU

C5 FI Override - Residence (as per FI override matrix) As per Annexure 3

C6 FI Override - Workplace (as per FI override matrix) As per Annexure 3

B6 FI waiver


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DEVIATION LEVELS




C7 Tele-verification Override

A5 Credit Bureau Override (as per Credit bureau Override guidelines) As per Section 18.3

A6 Credit Bureau waiver

B7 Internal Dedupe Override (Excluding cases where there is a fraud or the applicant has provided fake documents-no override possible)

As per Annexure 17

C1 Landline/post paid telephone not available at home / Landline available not at office

C8 ITR Verification override

C15 Reference Checks not done

B8 FCU Override (Excluding cases where there is a fraud or the applicant has provided fake documents-no override possible)

A7 FCU waiver

Income and eligibility

C22 Number of applicants in a case exceeds 4

B9 Minimum income less than norms Upto 5% Upto 10% No limit

B15 Minimum Gross Professional Receipts / Sales Turnover less than norms Upto 5% Upto 10% No limit

A10 Income Components and the percentages of income components considered for income estimation more than prescribed as per the Guideliness

A11 Future rental Income norms not met

A12 FOIR more than norms Upto 1% Upto 5% Upto 10% No limit

A14 DW more than norms Upto 1% Upto 5% Upto 10% No limit

A13 INSR more than norms Upto 2% Upto 5% Upto 10% No limit

A20 Other incomes considered more than the norms given in the Guidelines Upto 10% Upto 15% Upto 20% No limit


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DEVIATION LEVELS




A41 All other existing loan obligations that would continue beyond 12 months from the disbursement of this loan NOT considered for calculation of FOIR

A42 Obligations closing in the next 12 months and therefore excluded from FOIR calculation, do not exceed 50% of applicable FOIR.

B16 Agricultural income /interest /dividend not reflecting in P&L / ITR for last 3 years

B17 Rental income not reflecting in bank statements for last 6 months and ownership proof not taken

A19 Depreciation considered is more than 2/3rd

of 2 years average

A21 Exceptional Incomes / Arrears in salary not excluded from the calculation

A15 Last two years average of GPR’s / Net Profit after tax not taken for eligibility

A17 Latest Year’s net profit not capped at 150% of last year to do the averaging

A16 Multiplier not as per norms for Doctors

A8 Borrower and / or Coborrower(s) is a Minor

B2 Borrower-co-borrower relationship and Ownership and Income aggregation norms not met as per the Matrix in Annexure 5

A39 Income documentation incomplete

A31 Audited financials not available for LIP / GTP case

A29 LIP assessed income not limited to 70% of Net Profit after tax as per LIP report

A30 Net Profit after tax not arrived at as per norms and Multiplier applied on the Net Profit after tax not as per norms

A32 LIP / GTP assessment for more than two entities

A33 In GTP case, Group Turnover is more than Rs.50 Crores


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DEVIATION LEVELS




A34 Industry Margin applied is not as per the approved IM Table

A35 Net Turnover not calculated as per norm

B18 Cash Losses in the last 2 years / 3 years (as required for different products)

A36 In LRD Cases – Percentage reference for calculating eligible loan NOT as per the grid given in the Guidelines

A38 Lessee Not as per norms

B26 Minimum Lease period in LRD case, not as per norms

B27 In LRD case, lease deed is not registered

B28 Three Rental Credits or Security Deposit or Advance Rent not reflecting in Bank Statement

A37 NPV discounting NOT done at the applicable ROI

Banking

C16 Banking quality norms not met

B19 Bank statement period norms not met

C17 Average bank balance less than norms

Other policy deviations

B20 Repayment Track record documents not available

C25 Number of applicants in the case exceeding 4

A22 Delays in repayments of existing loans As per the grid for Credit Bureau report – Section 18.3.2

B21 Loan closure statements for loans closed within the 6 months prior to date of application not given

B11 Max Age at the time of maturity of the loan more than norms

B12 For Max. Age beyond norms, necessary declarations / NOC / Legal heirs to join


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DEVIATION LEVELS




as co-applicant not complied with

C9 Min Age less than norms but not below 18 at the time of sanction of the loan

C10 Min Qualification norms not met

A9 Professional Qualification norms not met

A1 Loan amount less than norms

A2 Loan amount more than norms

B1 Loan tenure more than norms

B3 Co-borrower(s) / Guarantor required in the case, but not taken

C13 No of dependents more than norms

C14 Gap in the filing of 2 ITR’s less than 3 months

C11 Employee of an organization type not mentioned in policy

C12 Employees of Pvt Ltd Co – norms not met

B10 Min Work experience / Business continuity norms not met

A4 Borrower / Co-borrower / Guarantor in the caution profile list

B13 Personal discussion norms not met

B14 PD conducted at the prescribed location

B22 Director's remuneration where considered, credits were validated from the bank statements

A23 Director's remuneration reflected in the ITRs

B4

Residence and Workplace outside geo limits (This deviation to be supported by a local guarantor with residence and workplace within approved geo limits. Guarantor also to give income proof and income to be at par with that of the applicant. Accordingly income proof for the guarantor must be collected.)

B30 Residence outside geo limits

C2 Workplace outside geo limits


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DEVIATION LEVELS




C3 Current Residence in Negative area

C4 Workplace in Negative area

B25 Insurance funding post approval more than 5% of the amount sanctioned - sub to LTV norms met.

A27 Loan amount including insurance funding meets FOIR / INSR /DW and LTV norms

C20 Not an approved lender for BT

C21 EMI payments for the Loan being taken over, not going through normal banking channels

B29 Bank Statements / Repayment track record obtained for less than12 months reflecting EMI payments

A43 Any other policy deviation not covered above

21 ANNEXURE 2 - PROPERTY DEVIATION AUTHORITY GRID LEGAL – TECHNICAL – OTHER DISBURSEMENT DEVIATION GRID

Notes: 1. In any case where there are more than one deviation and the authority levels are different for the deviations taken then all the deviations have to

be approved by the highest authority within those deviations.

2. Critical documents are those which define the Title of the property. Criticality of the documents must be mentioned by Panel Advocate in Legal

reports. All documents not marked as critical are non – critical documents.

DEVIATION LEVELS

L4 - HU L3 - HUH L2 - NUH L1 -CRO DEVIATION CODES AND DEVIATION DESCRIPTION



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LEGAL – TECHNICAL – OTHER DISBURSEMENT DEVIATION GRID





DEVIATION LEVELS



Property appraisal policy deviations

A40 Approved plan not available when required.

A24 LTV beyond product/programme norms for HIL, NRPL and LAP cases Upto 5% No Limit

A25 Cost / Value considered for calculating the LTV (Denominator) complies with the norms given in the Guidelines

A26 More than 25% of the agreement value for amenities considered in case of unregistered amenities / F&F agreement.

B23 In LAP cases, property registered in the name of the borrower(s) less than 12 months prior to the date of loan application

B24 Number of Valuations done as per norms

C18 Number of tenants norms not met (property rented out more than 50%) (Max 3 tenants)

C19 In non-developer cases, property visit done by PNBHFL staff / agency resource and report filed

A28 Unauthorized commercial usage in residential property under mixed usage.

B5 Property in Negative Area

A3 Property beyond Geo-limits

Legal policy deviations

C23 Waiver of non – critical documents as defined in note 1 above.

B30 Waiver of title document Prior to Immediate Previous Title Documents required but not available. This document should however not be executed within the previous 13 years. (Indemnity for loss of prior title document, FIR & Public Notice


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LEGAL – TECHNICAL – OTHER DISBURSEMENT DEVIATION GRID





DEVIATION LEVELS



mandated along-with cooling off period).

Other disbursal policy deviations

B31 Processing Fee cheque bounce

C24 No of PDCs less than 24 Not less than 18

Not less than 12

No limit

A43 Any other disbursal policy deviation

22 ANNEXURE 3 – FI OVERRIDE MATRIX The FI override matrix provides indicative mitigants that may help mitigate the risk of the remark. Credit officers of PNBHFL must however, consciously study each case and decide whether or not the mitigants are sufficient. The override authority is mentioned in the grid below and the PNBHFL officer having that authority must exercise his / her best judgement in each case before deciding to override any of the Negative or referred FIs.

FIELD INVESTIGATION - OFFICE

S. No

Remarks Negative/Refer Override Authority

Indicative Mitigants

1 Colleague/ supervisor/ neighbour met, details confirmed, negative feedback

Negative L4 • Good RTR

• Market ref check positive


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S. No



• Healthy banking

• Residence FI positive

2 No stock, No sign board seen Negative L3

• Qualitative judgment by Credit officers based on the

understanding of the business model of the

customer

• Healthy Banking/RTR

• Residence FI Positive.

3 No business set up, No business activity

Negative L3

• Qualitative judgment by Credit officers based on the


customer

• Healthy Banking/RTR


4 Address not traceable Negative L4

• Re-initiate FI

• PNBHFL Credit officer to visit office

• Collections feedback required - positive

5

Colleague/ supervisor/ neighbour met, refused to divulge any details/ details not confirmed

Negative L3

• SAL: Employee ID Card & Salary Slip

• SENP: PD at Office address

• SAL/SENP: Positive TVR

6 Recovery and collection people visiting applicant's office

Negative L2

• Qualitative judgment by Credit based on positive

RTR Clean track in CIBIL & other dedupe checks.

• No bouncing in last 12 months

7 Customer irregular at work Refer L3

• Discussion with reporting officer and HR

• Reference checks.

• Salary Slip reflecting Salary Credit

• Healthy Bank Statement.

• Residence FI to be Positive.


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S. No



8 Applicant is an outsourced employee

Refer L3

• Qualitative judgment by Credit based upon work

exp, qualification, re-employbility, family

background, LTV etc.RV to be positive.

9 Unable to get details - correct address/ phone number/ extension number required

Negative L4 • Re-initiate FCI & Credit officer to visit office + office

address proof

10 Rented residence cum office Negative L3

• Qualitative judgment by Credit based upon profile of

customer & property offered as security.

• Healthy banking.

• Permanent Residence address details mandatorily

reqd. TVR to be done on Permanent address &

Report to be Positive.

11 Manufacturing unit/ factory/ own office in unauthorized area

Negative L2

• Qualitative judgment by Credit based on factors like

other sources of income, eligibility drawn on other

income/family background/Low FOIR /Low

LTV/other earning members/end business set-up/his

plans to shift/purpose of loan etc.

12 Entry not allowed, no details confirmed/ office locked

Negative L4 • Re-initiate FI & Credit officer to visit office

13 Applicant not working at the given office address

Negative L2 • Re-initiate FI & Credit officer to visit office + ID proof

14 Applicant working at the given office but on outstation deputation

Refer L2

• SAL: Qualitative judgment by Credit based on

investigations like deputation details & period of

deputation.

• Healthy Banking & RTR`s.

• Salary Slip Showing Salary Credit.

• Positive Res FI & Office TVR.

• PNBHFL presence at deputation Location


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S. No



Mandatory.

• Confirmation to be taken from HR Department

15 Applicant planning to shift job in sometime

Refer L3

• Qualitative judgment by Credit based on

investigations like new employer details, re-

employability, qualification & Work-ex.

• Low FOIR

• Good RTRs

• Healthy Banking

• New Offer Letter to be taken & filed.

16 Office does not belong to applicant

Refer L2

• Qualitative judgment by Credit based on factors like

income, property & repayment profiles.

• Positive Residence FI

• Relationship between office owner and applicant

established.

17

Applicant being restricted profile/ having political affiliations/ close family members in restricted profile/ having political affiliations

Negative L1 • Qualitative judgment by Credit based on factors like

income, property & repayment record.

18 Applicant not interested Negative L3 • Re-initiate Office FI

• Confirm loan requirement by Credit

19 Office closed,Third Party Confirmation done

Refer L4

• Positive Personal Discussion

• Positive Tele verification



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S. No



20 Derogatory history of related Third Party (address and Surname match)

Negative L3

• Qualitative judgment by Credit based on personal

discussions, other field investigations, other market

references

• Good RTRs

21 Self owned residence cum office with no distinct office

Refer L3

• Qualitative judgment by Credit based on the


customer

• Good Banking

• Good RTRs.

• Good asset base.

FIELD INVESTIGATION - RESIDENCE

S. No Remarks Negative/

Refer Override Authority


1

Applicant about to shift from the given residence address to another residence other than that being financed in some time

Refer L2

• Qualitative judgment by Credit based

upon profile of customer & property

offered as security

2 Residence does not belong to applicant

Refer L2


on factors like income, property &

repayment history.

• Permanent address mandatory

• FI at Permanent address positive.

3

Applicant being restricted profile/ having political affiliations/ close family members in restricted profile/ having political affiliations

Negative L1


on factors like income, property &

repayment history


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4 Slum Area / kacchi basti/ Difficult to locate/ unauthorised construction

Negative L1


on factors like customer profile and

repay history

• Property in +ve area/purchase of

property in +ve area

5 Address not traceable Negative L4 • Re-initiate FI

• Credit team visit to residence & office

6

Negative feedback from family member/ neighbour/ third party confirmation/ Applicant involved in illegal/ immoral activities

Negative L2

• Good RTR

• Other market ref check positive

• Healthy banking and any other

mitigant

7 Poor living standard- Kuccha construction/Tin sheet / Plastic Sheet House/ No durables

Negative L1

• Property purchase in positive area

• Office in positive area

• Applicants are well qualified

• Good work exp , Low LTV, RTR

8 Negative area Negative L1

• Property purchase in positive area

• Office in positive area

• Applicants are well qualified

• Good work exp , Low LTV

• Good RTRs

• Collections feedback positive

9 Applicant offers bribe to verifier Negative NA • Case not to be done – no override

10 Derogatory History of borrower or spouse

Negative L2

• To be done only with positive

collections feedback.

• Other mitigants to be checked by

Credit on a case to case basis.


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11 Entry not allowed, no details confirmed/ house locked

Negative L4 • Re-initiate FI

• Credit officer to visit Res and office

12 Applicant not staying at the given address/ wrong add given

Negative L4 • Re-initiate FI

• Credit officer to visit Res and office

13 Applicant not interested Negative L4 • Re-initiate FI & confirmation of loan

requirement by Credit

14 Recovery agents visiting applicant's residence

Negative L2

• Qualitative judgment by Credit

based on RTR, Credit Bureau &

other dedupe checks.

• No bouncing in last 12 months.

15 Shared accomodation/ bachelor accomodation/ house mostly locked

Negative L2


based on property given as security,

Income source & Qualification

• Good RTR, positive Credit Bureau

& other dedupe checks

16

Applicant / immediate family member met , details/ standard of living confirmed , third party confirmation not done/ not confirmed

Refer L4 • Positive PD, TVR & Ref. Checks.

17

Residence confirmed , third party confirmation confirmed , but family members not ready to take onus of applicant's loan

Refer L3

• Qualitative judgment by Credit.

• Good RTR & Other market ref

checks

• Healthy banking etc.

18 Residence confirmed, poor interiors , third party confirmation confirmed

Refer L4



checks


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19 Residence confirmed , third party confirnation confirmed , but family not aware about Loan

Refer L3



checks


20 Residence door locked, third party confirmation confirmed - period of stay confirmed

Refer L4 • Positive Personal discussion,

Residence TVR & Office FI.

21 Residence door locked , third party confirmation not confirmed

Refer L3 • Positive PD & TVR + Residence

proof

22 Customer already taken loan from somewhere else/ applied to other places

Refer L3


based upon Good RTR, Credit

Bureau & other dedupe checks.

• Healthy Banking.

23 Low standard of living / low income profile

Refer L3


based upon work exp, qualification,

re-employbility, family background,

LTV etc

23 ANNEXURE 4 – PROJECT APPROVAL FORMATS This section contains the list of formats to be completed in order to approve a builder project.


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Project approval worksheets - Retail.xls

24 ANNEXURE 5 – OWNERSHIP AND INCOME AGGREGATION GRID

It must be ensured that the borrower or co-borrower in the application (whether taken as per the Grid here or outside of this Grid) is NOT a Minor.

OWNERSHIP INCOME

Husband Wife Husband + Wife

Husband Yes Yes Yes

Wife Yes Yes Yes

Husband + Wife Yes Yes Yes

Father Son Father + Son

Father + Son + Daughter in law

Son + Daughter in law

Father Yes No (Yes if sole

child) No (Yes if sole

child) No (Yes if sole

child) No (Yes if sole child)

Son No Yes No No Yes

Father + Son Yes Yes Yes Yes Yes

Father + Son + Daughter in law Yes Yes Yes Yes Yes

Father Daughter Father + Daughter

Father + Daughter + Son in law

Daughter + Son in law


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OWNERSHIP INCOME

Father Yes No No No No

Daughter No Yes No No Yes

Father + Daughter Yes

No (Yes if sole child)


No No

Father + Daughter + Son in law

Yes Yes Yes Yes Yes

Mother Son Mother + Son

Mother + Son + Daughter in law

Son +Daughter in law

Mother Yes





Son Yes Yes Yes Yes Yes

Mother + Son Yes Yes Yes Yes Yes

Mother + Son + Daughter in law Yes Yes Yes Yes Yes

Mother Daughter

Mother + Daughter

Mother + Daughter + Son in

law

Daughter + Son in law

Mother Yes No No No No

Daughter No Yes No No No

Mother + Daughter Yes



No No

Mother + Daughter + Son in law

Yes Yes Yes Yes Yes

Brother 1 Brother 2 Brother 1 + 2

Brother 1 Yes No No

Brother 2 No Yes No

Brother 1 + 2 Yes Yes

No (Yes if the unit is separable into 2 distinct


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OWNERSHIP INCOME

entities)

Brother Sister Brother + Sister

Brother As per the grid above No No

Sister No No No

Brother + Sister No No No

25 ANNEXURE 6 – AUTHORITY MATRIX

Will be provided separately

26 ANNEXURE 7 – PERSONAL DISCUSSION FORMAT – SALARIED APPLICANTS

PD Sheet - Salaried.xls

27 ANNEXURE 8 – PERSONAL DISCUSSION FORMAT – SENP APPLICANTS


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PD Sheet - SENP.xls

28 ANNEXURE 9 – VALUATION REQUEST FORMAT

Date of firing the request

File reference no

Name of the applicant

Contact Nos

Residential Home Purchase Loan / Resale (RHPL) / (RHPLR)

Residential Self Construction Loan (RSCL)

Residential Plot Purchase plus Construction (RPCL)

Home Extension Loan (HEL)

Home Improvement Loan (HIL)

Residential Plot Loan (RPL)

Loan against property (LAP)

Type of loan

Non Residential Purchase Loan (NRPL)

Complete address of the property with Landmark

Built up area (Sq Ft / Sq Mtr)

Super Built up Area (Sq Ft / Sq Mtr)

Car parking (Nos , open/ covered) Property Specs

Other Amenities ( Servant Room, Open Terrace)

Enclosures Sanction Plan


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Commencement Certificate

Route Map

Floor Plans

Name and Signature

29 ANNEXURE 10 – STAGES OF CONSTRUCTION AND DISBURSEMENT AT EACH STAGE Self Construction – Residential property: The disbursement of Construction loan will be made in installments depending on the equity /margin money of the Borrower and the progress of construction. The Borrower would have to complete his contribution (total estimate – sanctioned loan amount) before the first disbursement is made to him. The quantum of first disbursement would depend on the technical appraisal report of the empanelled appraiser which would mention the amount required to reach the next land mark stage in the house construction. The critical stages of house construction would be 1. Plinth level 2. Lintel level 3. Roof cast level 4. Internal & external plaster level 5. Flooring Level 6. Finishing Level At each request for disbursement, valuer would visit the property and provide a report on the progress, based on which the decision to release the disbursement would be taken. The first tranche of disbursement would be made net of Borrower’s equity. Ie. If borrower’s equity is 15% of the total cost, borrower would be asked to invest his margin money on construction and then a disbursement of upto 25% (40% - 15%) can be made in the First Tranche. For the subsequent tranches, disbursement would be made based on progress (as confirmed in valuer’s report) and upon receipt of proof of payments made to contractor / Architect for construction. Thus the second disbursal would be made after, 40% investment of total cost has been made on the property and proof of the same provided to PNBHFL. The amount of second disbursement would be decided by the Credit unit, based on the progress reported by the valuer and also taking into consideration the customer’s requirement. Parallel Funding

Parallel funding would be allowed for approved developer projects. The customer can stagger putting in his equity, alongwith the disbursements from PNBHFL. Parallel funding would work in the following manner


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• Customer to put in a minimum equity of 15% (85% LTV category) of total property cost before any disbursement from PNBHFL.

• The customer would be allowed to put in his remaining portion of equity before the final instalment is due to the developer in a flexible manner as per the schedule agreed with PNBHFL.

• The final instalment / possession amount would be paid to the developer through PNBHFL disbursement or with part customer payment. Under – Construction Developer projects: In a Developer Under-construction property, various patterns of disbursements as below are possible. A. Disbursement as per Date Linked demand letter: Under this method, disbursement is done basis the demand letter from the developer, which is raised on a pre-determined date. Inclusion of any developer for this pattern of disbursement to be approved by NUH. The disbursement would be done basis the demand letter given by the developer. B. Disbursement as per construction stage linked demand letter: Under this method, disbursement is done basis demand letter from the developer / society, which is raised basis progress in construction reaching a particular stage. The progress percentage as mentioned by the developer / society in the demand letter would be compared with the progress reported by the valuer in his valuation report. The valuation in under-construction projects is done once a quarter. Whenever a demand letter is received to be processed for disbursement, progress mentioned in the demand letter would be compared with the latest progress available with PNBHFL. A decision on whether the progress as per demand letter is acceptable or not, would be taken by the Credit as stated above. Inclusion of any developer / society for this pattern of development would be approved by Regional Credit Head. C. Disbursement as per Stage of Construction: Under this method, disbursement would be done based on the construction progress as reported in the valuer’s report. The disbursement process followed in would be as per the following guideline matrix:

Progress %age as per Valuation report %age of loan amount recommended for disbursement

10% 30%

20% 40%

30% 50%


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40% 55%

50% 65%

60% 75%

70% 80%

80% 90%

85% Upto 100%

Note: A deviation of upto 10%, on above %ages can be approved by Hub Credit Head for a disbursement. Any deviations above 10% will have to be referred to National Underwriting Head. Technical Deviations – Construction area different from plan: There are occasions where construction done at site is over a larger area than the approved plan. This is an area deviation over and above what is approved by the Municipal authority and hence is open to the risk of legal action from municipal authorities. All major players in competition finance such properties with deviations. The following technical deviation matrix is permitted for financing:

Type of Property Regional credit head National underwriting head

Self construction Properties

Upto 20% over approved area Above 20% of approved area

Resale Properties Upto 20% over approved area Above 20% of approved area

Developer Properties Upto 20% over approved area Above 20% of approved area

The finance will be only for the approved portion and would only be applicable to approved locations and projects.

Cash-Down Disbursals to select developers: This type of disbursal would be applicable only to certain developers and projects that are approved by MD & Chief Risk Officer from time to time. The entire equity of the customer will have to come upfront in case of cash down disbursement. Where a certain amount is to be paid on possession, such amount would be held back by the Bank and disbursed to the developer on possession. Total disbursement under cash down cannot exceed 5% of the portfolio.


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30 ANNEXURE 11 – FORMAT FOR TECHNICAL APPRAISAL OF PROPERTY

Valuation Report format.xls

31 ANNEXURE 12 – FORMAT FOR LAWYERS OPINION REPORT

Legal Title Opinion Report Format.doc

32 ANNEXURE 13 – STEP UP REPAYMENT FACILITY CALCULATOR

Calculator for graduated repayment plan.xls

33 ANNEXURE 14 – STEP-DOWN REPAYMENT PLAN CALCULATOR

Calculator for decreasing repayment plan.xls


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34 ANNEXURE 15 – CAUTION PROFILES A list of applicant profiles that are categorized as caution profiles are mentioned below:

• Employees of BIFR companies

• Security Service companies and their employees

• Mine and quarry workers

• Plantation / Time Share companies

• Employees of Chitfunds / stockbroking / small time investment companies

• Contractors including labour contractors

• Stock Brokers / PCO Booth owners/ Cable Operators / small time manpower consultants

• Consultants without professional degree/ Licence

• Direct Sales Associates of finance companies

• Small courier agencies

• Manufacturers having manufacturing facilities in residential premises or non- confirming areas not allowed.

• Transporters with less than 5 Trucks

• Property dealers/ brokers/ real estate agents

• Bar cum Restaurant owners / Liquor vendors

• Class 4 Govt Employees

• Daily wage labourer/contractual labourers

• Drivers – Taxi / Auto rickshaw / Commercial vehicles

• Anti Social elements

• Politically exposed persons.

• Lawyers (other than Supreme court and high court lawyers)

• Policemen at Sub-Inspector and lower levels

• Class 1 and class 2 contractors should also be included along with other contractors due to nature of business.

• Small time builders.

• Media personnel


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• Call centre operators and junior employees of call centre.

• NGOs and their employees

35 ANNEXURE 16 – ELIGIBILITY CALCULATION PACK Will be provided separately

36 ANNEXURE 17 – INTERNAL DE DUPLICATION OVERRIDE GUIDELINES The internal De-duplication guidelines are aimed at establishing the following:

• Whether the borrower had at any time applied to PNBHFL for a loan and has been rejected.

• Whether PNBHFL has had an earlier exposure to the borrower. If there was an exposure, what was the quantum of earlier exposure

• The repayment track record of the earlier exposure Towards this end, the policy is designed as below:

A. If the borrower or coborrowers’ loan was earlier rejected by any of the PNBHFL branches, PNBHFL must review the earlier reason for decline and take that into consideration, before proceeding with the case. If the earlier case was declined due to fraud or misrepresentation of facts, the loan cannot be progressed ahead. Deviations to this to be approved by Hub Underwriting Head or above.

B. If the borrower or coborrowers’ have been disbursed a loan earlier and there is an existing exposure, while processing a new loan request, the combined exposures (old existing loan and the new loan request) must be taken into account. Accordingly the EMI of the earlier loan must be considered in other obligations, while doing the new loan. Secondly, from an exposure perspective, it must be ensured that the total exposure to the borrower, does not exceed the maximum loan to a customer stated in this policy. Deviations to this to be approved by Hub Underwriting Head or above.

C. If there is an existing loan exposure to the borrower, then the repayment track record of the same should be checked. There should be no delays in the payments. Following grid can be used to considered deviations in cases where there are delays or defaults in the repayment of the earlier loan.

Delinquency Stage Number of times delinquent Approving Authority

Not more than 3 times in the last 12 months and never in 30 dpd HU and above < 30 DPD

More than 3 times in the last 12 months and never in 30 dpd. HUH and above


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Not more than once in the last 12 months and never in 60 dpd HU and above

Not more than twice in the last 12 months and never in 60 dpd HUH and above 30 – 59 DPD Not more than four times in the last 12 months, but never in 60 DPD

(To be accompanied by another clean track record on LOAN for 12 months)

NUH and above

Not more than once in the last 12 months and never in 90 dpd (To be accompanied by another clean track record on LOAN for 18 months)

HUH and above 60 – 89 DPD

Not more than twice in the last 12 months and never in 90 dpd (To be accompanied by another clean track record on LOAN for 18 months)

NUH and above

90 DPD + Loan not to be done CRO and above can approve

an exception, if satisfied with the overall merits of the case

37 ANNEXURE 18 –LIST OF APPROVED GROWTH BRANCHES

Sr No Location Sr No Location

1 Delhi 11 Dehradun

2 Ghaziabad 12 Chandigarh

3 Noida 13 Karnal

4 Dwarka 14 Ludhiana

5 Gurgaon 15 Bikaner

6 Bhopal 16 Jaipur

7 Indore 17 Raipur

8 Nagpur 18 Mumbai

9 Bangalore 19 Navi Mumbai

10 Chennai 20 Pune


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38 ANNEXURE 19 –LIST OF INDUSTRIES AND MARGINS

Will be provided separately

39 GLOSSARY

S. No ABBREVIATION FULL FORM

1 AOA ARTICLES OF ASSOCIATION 2 BT BALANCE TRANSFER 3 CA CHARTERED ACCOUNTANT 4 COP COST OF PROPERTY 5 CRO CHIEF RISK OFFICER 6 DOB DATE OF BIRTH 7 DPD DAYS PAST DUE 8 DW DOUBLE WHAMMY (FOIR + LTV) 9 ECS ELECTRONIC CLEARING SYSTEM

10 EMI EQUATED MONTHLY INSTALMENT 11 FCU FRAUD CONTROL UNIT 12 FI FIELD INVESTIGATION 13 FOIR FIXED OBLIGATION TO INCOME RATIO 14 GPA GENERAL POWER OF ATTORNEY 15 GTP GROSS TURNOVER PROGRAMME 16 HEL HOME EXTENSION LOAN 17 HIL HOME IMPROVEMENT LOAN 18 HU / HUH HUB UNDERWRITER / HUB UNDERWRITING HEAD 19 HUF HINDU UNDIVIDED FAMILY 20 IIR INSTALMENT TO INCOME RATIO 21 INSR INSTALMENT TO NET INCOME RATIO


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22 ITR INCOME TAX RETURN 23 LAP LOAN AGAINST PROPERTY 24 LTA LEAVE TRAVEL ALLOWANCE 25 LTV LOAN TO VALUE RATIO 26 MIS MANAGEMENT INFORMATION SYSTEM 27 MOA MEMORANDUM OF ASSOCIATION 28 MOB MONTHS ON BOARD 29 MOE MEMORANDUM OF ENTRY 30 MV MARKET VALUE 31 NA NOT APPLICABLE 32 NCR NATIONAL CAPITAL REGION 33 NHB NATIONAL HOUSING BANK 34 NIA NON INDIVIDUAL APPLICANTS 35 NOC NO OBJECTION CERTIFICATE 36 NRI NON RESIDENT INDIAN 37 NRPL NON RESIDENTIAL PREMISES LOAN 38 NUH NATIONAL UNDERWRITING HEAD 39 P.A. PER ANNUM 40 PAT PROFIT AFTER TAX 41 PBT PROFIT BEFORE TAX 42 PD PERSONAL DISCUSSION 43 PDC POST DATED CHEQUE 44 PEMI PRE EQUATED MONTHLY INSTALMENT 45 PF PROCESSING FEE OR PROVIDENT FUND 46 RBI RESERVE BANK OF INDIA 47 RCC REINFORCED CONCRETE CEMENT 48 RCL RESIDENTIAL CONSTRUCTIN LOAN 49 RHPL RESIDENTIAL HOME PURCHASE LOAN 50 RHPLR RESIDENTIAL HOME PURCHASE LOAN – RESALE 51 RLCL RESIDENTIAL LAND + CONSTRUCTION LOAN


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52 RPL RESIDENTIAL PLOT LOAN 53 ROC REGISTRAR OF COMPANIES 54 ROI RATE OF INTEREST 55 RTR REPAYMENT TRACK RECORD 56 SAL RESIDENT SALARIED INDIVIDUAL 57 SENP RESIDENT SELF EMPLOYED NON PROFESSIONAL 58 SEP RESIDENT SELF EMPLOYED PROFESSIONAL 59 TPA TRI-PARTITE AGREEMENT 60 TVR TELE VERIFICATION REPORT 61 VAT VALUE ADDED TAX

PNB Policy

Documents

Transcript of PNB Policy