“Business Growth Through

Sales and Service Excellence”

Complied by

P. K. Bhatnagar Dy. Regional Manager

Baroda Region

Phone No. 0265 – 2362301 (D), 0265 - 2363133 F - 0265-2226057

Mobile No. 91-9428172986 E-mail – pkbhatnagar_bob@yahoo.co.in

(Updated up to 31st December, 2011)

Version - 12: 12: 11

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FOREWORD

I am happy to go through the updated version of the book titled “Retail Lending Scheme” compiled by Mr. Pradeep Kumar Bhatnagar, Chief Manager (Navnirmaan), Baroda. We all know that ‘Retail Segment’ has witnessed rapid growth in the recent past and still continues to be a thrust area for banking sector. All Banks are aggressively trying to encourage their retail customers as it holds exponential growth potential with good spread. Redesigning products to meet requirements of retail customers, redefining delivery channels, reducing turn around time for greater customer satisfaction, has become the need of hour for the banks. Our Bank rolled out Retail Loan Factories and continues with product/ process innovation to enhance customer experience. The book contains features of various Retail Loan Products offered by our Bank along with references to circulars at the end of each chapter, deviation norms, preventive vigilance etc in a user-friendly manner, which makes this book very unique and useful for all Barodians, particularly for those who are required to handle Retail Loan portfolio. I am confident that this work serves as a one-stop-resource point for all questions relating to retail credit. Field level functionaries would find this very handy to focus on increasing our Bank’s market share in retail segment. I appreciate the contribution of Mr. Bhatnagar in updating the book periodically in a lucid way and I wish him all the very best. C. B. Patel Dy. General Manager Bank of Baroda Regional Office BARODA

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PREFACE Over the recent years, focus of commercial Banks has shifted from corporate to retail with regard to deployment of funds. This strategic shift in approach has as such well suited to the principle of spread and managing risks. An unseen degree of competition is witnessed among the banks in the area of product innovation, tailor made to suit customer’s need / requirement, marketing strategies and delivery channels – all with a view to ensure expansion of retail customer base on a sustainable basis. Retail business continues to have the undiluted corporate attention of all financial institutions for being the major channel for a continued business growth. Earlier our Bank was having 26 products in our Retail Loan basket and many of them were similar in generic nature. In view of above, these products have been realigned for operational convenience. In view of the above decision taken by the Bank, w.e.f. 01.04.09 now there shall be only 10 major products. Against this backdrop what becomes the single most winning weapon with us is the human factor updated with the latest in the area. It is with this objective that I thought of compiling this booklet containing the various Retail Lending schemes of our bank which I hope would prove to serve the purpose – be an important reference point for all of us. I hope that this would enable our colleagues to successfully address the queries of our valued customers and to come up to the expectations of our higher authorities. In the backdrop of recent economic turmoil, it is quite natural that Bank will be coming out with various changes in the approach towards retail lending sector. It will be my endeavor to update this booklet at quarterly interval to incorporate such changes, if any. I would like to place my gratitude to all my colleagues for their valuable suggestions and guidance in course of my efforts in translating my idea into reality. While I have tried my best to ensure that the booklet is free from any error, the possibility of any inadvertent error, which would be mostly typographical in nature, can not be ruled out. Kindly refer to original circulars in case of any confusion. For applicable interest rate of the scheme, chart given in the book may be referred. Now, I have been placed as Chief Manager (Navnirmaan), Regional Office, Baroda and will try to be in touch with you all through this book of mine. I solicit your valuable suggestions in future which would encourage me to bring further improvement in terms of both quality and coverage. P. K. Bhatnagar

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RETAIL LENDING PRODUCTS

INDEX

S No NAME OF PRODUCT PAGE

1 BARODA HOME LOAN 4 2 BARODA MORTGAGE LOAN 23 3 BARODA ASHRAY (REVERSE MORTGAGE LOAN) 29 4 BARODA TRADERS LOAN 32 5 BARODA EDUCATION LOANS 35 6 BARODA AUTO LOAN 50 7 BARODA PERSONAL LOAN 55 8 BARODA ADVANCE AGAINST GOLD JEWELLARY / ORNAMENT 59 9 BARODA TRADERS LOAN AGAINST THE SECURITY OF GOLD

ORNAMENT / JEWELLERY 61

10 BARODA LOAN TO DOCTORS 63 11 BARODA LOAN AGAINST SECURITIES 65

12(a) LOAN AGAINST FUTURE RENT RECEIVABLES – UNDER COMMERCIAL REAL ESTATE SECTOR ( CRE )

73

12(b) LOAN AGAINST FUTURE RENT RECEIVABLES – UNDER NON COMMERCIAL REAL ESTATE SECTOR ( NON - CRE )

76

13 BARODA SALARY ADVANTAGE SAVINGS ACCOUNT 79 14 INTEREST CHART 80 15 REALIGNMENT OF DEVIATION NORMS 81 16 PREVENTIVE VIGILANCE IN RETAIL LOANS 83 17 ADHERENCE TO TIME NORMS OF TURN AROUND TIME (TAT) 85 18 CRISIL RATING MODELS 86 19 COMPLIANCE OF GUIDELINES TO AVOID OCCURANCE OF

FRAUDS- INTRODUCTION OF CHECKLIST 87

DISCLAIMER

The reading material provided herewith to the readers is intended to facilititate learning and enhance their knowledge and comprehension of the subject and should not be construed as substitute of Bank’s opearational guidelines isued from time to time. The readers are advised to refer the circulars issued by the Bank in case of any confusion.

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BARODA HOME LOAN As we are aware that our Bank was having different products related to Home Loan sector. These Loan Schemes vide Bank’s Circular no. BCC: BR: 101:93 dated 28.03.2009 have been realigned for operational convenience under the name “BARODA HOME LOAN” as below: 1) Baroda Home Loan 2) Baroda Home Loan to NRIs /PIOs 3) Baroda Home Improvement Loan 4) Baroda AAA to Residents / NRIs 5) Interest Subsidy Scheme for Housing to Urban Poors For the convenience of the readers the salient features of the schemes as mentioned above are detailed separately as under: BARODA HOME LOAN PURPOSE: v Purchasing of new residential house / flat and construction of new

dwelling unit. v Purchase of old dwelling unit (not more than 25 years old). Beyond 25 years

Regional Head permission required subject to ascertaining structural soundness / residual life of the building (5 yrs more than the repayment period).

v Purchase of plot of land, subject to construction thereon within 3 years or up to the period allowed by Development Authority (whichever is earlier) from the date of purchase of plot..

v Repayment of loan already availed from any other Bank / HFCs and /or other sources, provided documentary evidences are produced.

v For houses / flats constructed / purchased (not prior to 24 months) from own sources.

v Loan for purchase / construction of second house can be considered who secure HL-1 to HL – 3 risks rating under CRISIL rating. [ Reimbursement of cost of plot is not admissible under the scheme ]

ELIGIBILITY: v All individuals singly or jointly v Principal applicant must be employed minimum for three (03) years. v Minimum Age – Principal Borrower – 21 yrs and Co-borrower - 18 yrs

(Salaried Person - repayment period shouldn’t be beyond retirement age and for Others - 65 years )

v Home Loan for the second house for self occupation can also be considered for the person who already owns a house.

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v Housing Loan to HUF is not to be considered as it is not meant for family business of HUF.

LIMIT: v The maximum limit is Rs 100 lacs. (For Rural & Semi Urban branches) and

Rs 300 lacs ( For Urban & Metro Branches). However, the actual quantum of loan should be arrived at after considering the income criteria & repaying capacity.

v For Extension - up to Rs 10.00 lacs (however, total amount of the loan

sanctioned including that for extension should not exceed Rs 100 lacs. INCOME CRITERIA:

SOURCE INCOME CRITERIA Up to Rs 20,000/= 36 times of monthly gross income

More than Rs 20,000/= and up to Rs 1 lac

48 times of monthly gross income Salaried

More than Rs 1 lac 54 times of monthly gross income Other than Salaried Persons 5 times of average ( last 3 years ) annual

income excluding depreciation v Wherever income of the family members is clubbed, they should be made

co-borrowers. v Income of the Agriculturists who are predominantly dependent on

agriculture and not required to file the income tax may be assessed by obtaining income certificate from the local competent revenue authority only. The assessment of income so arrived must be properly recorded with justification in the appraisal note.

REPAYING CAPACITY:

v Total deductions including proposed EMI should be as below :

(i) In case of Salaried Persons :

Monthly Income (Bracket) Total Deductions not to exceed ( including proposed EMI )

Up to Rs 20,000/- 40% Ø Rs 20,000/- and up to Rs

50,000/- 50%

Ø Rs 50,000/- 60%

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(ii) In case of Others :

Annual Income Total Deductions not to exceed ( including proposed EMI )

Up to Rs 2,40,000/- 50% Ø Rs 2,40,000/- and up to Rs 12

lacs 60%

Ø Rs 12 lacs 70% MARGIN: For Salaried Persons :

Monthly Income Purpose Margin

Purchase of Plot ( incl. registration charges & cost of

stamps )

20%

House / Flat already constructed from own resources

25%

Up to

Rs 20,000/-

All other cases including out right purchase of Readymade Houses /

flats or construction of houses

20%

Purchase of Plot ( incl. registration charges & cost of

stamps )

20%

House / Flat already constructed from own resources

20%

Above

Rs 20,000/-

All other cases including out right purchase of Readymade Houses /

flats or construction of houses

20%

For Others : Ø For purchase of plot and all other cases including out right purchase of

Readymade Houses / flats or construction of houses: 20% Ø For houses / flats already constructed from own resources and loan is

taken subsequently, 20% of the cost of construction / purchase price of house / flat.

v While taking over the Home Loans from other Banks / HFCs, Branches are

requested to ensure that a minimum margin of 20% on the value of house property is available .

REPAYMENT:

v Maximum 25 years ( including moratorium period ) v Moratorium Period – 18 months v Age of the borrower plus repayment period should not exceed :

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Ø Retirement age in case of salaried Ø 65 years in case of others

v The repayment period in case of salaried persons can be extended up to 65 yrs in case drawing pension subject to condition that 40% of the pension is sufficient to pay EMI.

v Interest charged during the pre – EMI period is to be recovered as and when debited, before commencement of recovery by EMI.

RESET CLAUSE:

v W.e.f. 16.08.07 Bank has introduced Reset Clause per which Interest rates

under Fixed rate option will be reviewed and revised at every 5 years ( BCC/BR/99/243 dated 04.08.2007) – accordingly first reset will take place on or after 04.08.2012 i.e. after 5 years of sanction.

v The reset period (vide BCC/BR/100/313 dated 15.11.2008) w.e.f. 17.11.2008 has been reduced / modified from existing 5 years to 3 years.

v However, the fresh sanctions will be only on floating rate of interest only.

RISK RATING : v All home loan applications are subject to CRISIL Risk rating (BOBRAM). Total

marks are 168 and the cutoff is set at 96.

SECURITY:

v Mortgage of the property constructed / purchased. If mortgage is not available, branch can accept, at its discretion, security of adequate value in the form of collaterals as may be deemed adequate including third party guarantee from individuals.

v In cases where procedure for execution of sale deed / conveyance deed forming a co-operative society and issuance of share certificate takes a very long time and as such there are practical difficulties in creating equitable mortgage at the time of sanction of loan for flats developed by builders / developers following procedure may be adopted:

Create equitable mortgage by obtaining following documents duly supported with the advocate’s search report and opinion of titles of the land as also on the agreement to sale.

Ø Duly stamped and registered original agreement to sale executed by

builder in favour of borrower. Ø Original receipt in respect of registration of “Agreement to sell”. Ø Copy of the map of the building duly approved by the appropriate

authority. Ø NOC from the builder for creating mortgage and noting of Bank’s lien

if the building is under construction.

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Ø Share Certificate, if society is formed, duly supported with NOC from the society for creation of mortgage and noting of our lien in society’s record.

Ø Possession letter in original. OTHER CHARGES: v Unified Processing Charges:

Ø For Loan up to Rs 30 lacs – 0.50 % on loan amount Min Rs 5000.00 + Service tax

Ø For loan above Rs 30 lacs – 0.40 % on loan amount (Min. Rs 15000.00 + Service tax & Maximum Rs 50000.00 + ST )

Ø Normal processing charges for take over of loans from other banks / financial institutions @ 0.10 % without any maximum limit (incl. Documentation & Post Inspection charges)

v Pre Closure Charges:

Ø No pre closure charges for part / full payment from own resources. Ø Loan sanctioned on or after 01.12.02 @ 0.50 % of balance outstanding

each year of the residual period of loan subject to maximum of 2 %. INSURANCE:

v The insurance of the house mortgaged to the bank is to be done at the

bank’s cost under Baroda Home Loan Suraksha Bima Policy with National Insurance Company Ltd.

v Free accidental death insurance of the borrower to National Insurance Company to cover the outstanding loan amount with accrued interest at the bank’s cost (Insurance cover shall be available to the co-borrowers on payment of additional premium and such premium shall be borne by borrowers themselves)

v W.e.f. 16.03.2005 Borrower can join “Baroda Jeevan Griha Suraksha” scheme to cover the outstanding loan amount with accrued interest against the risk of normal death after paying nominal insurance premium once to Life Insurance Corporation of India. However finance is available from us for premium payable which is repayable along with EMIs of the Home loan. (wef 16.03.2005)

v It has been decided by the Bank to include another insurance provider M/S Kotak Mahindra Old Mutual Life Insurance Ltd (Commonly known as “Kotak Life Insurance”) with a purpose to have an additional option to provide life insurance facility to our Home Loan borrowers (optional and at their cost) at competitive rates to secure our home loans in case of death of the borrower. This scheme is effective on all fresh sanctions / disbursement made on or after 01.01.2010 and not for the loan accounts sanctioned earlier.

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v In case of foreclosure of loan, proportionate excess premium paid shall be refunded by KLI.

v With a purpose to have an additional option to provide life insurance facility to our Home loan borrowers (optional and at their cost) a tie up arrangement has been made with India First Life Insurance. The cover from India First Life Insurance shall be effective from 01.09.2010 and not for existing loan accounts.

v The premium amount for obtaining the cover can be financed as part of Home Loan at the request of the borrower and accordingly EMI will be calculated. (In case of foreclosure, excess premium paid shall be refunded by the Insurance co.)

HOUSING LOAN TO STAFF UNDER THE SCHEME:

S. No.

NORMS EXISTING MODIFIED

1. Maximum Loan Amount : Ø For purchase / construction of house Ø For purchase of plot Ø For repair / renovation

Rs 10 lacs

No specific limit Rs 3 lacs

Rs 25 lacs Rs 10 lacs

Rs 5 lacs 2. Margin :

Ø For purchase / construction of new house

Ø For purchase of old dwelling unit Ø For purchase of plot Ø For repairs / renovation /

extension of existing house

20 %

30 % 35 % 25 %

20 %

20 % 20 % 25 %

3. Repayment Period Up to 20 years Up to 25 years OR retirement

OTHER FEATURES: v Change of tenor is allowed and upfront charges @ 0.20 % p.a. for the

residual period of loan under new repayment schedule. v Free Credit Cards

Ø No Card – Up to Rs 2 lacs Ø Silver – Loan limit of Rs 2 lacs to Rs 5 lacs Ø Exclusive – Above Rs 5 lacs & up to Rs 10 lacs Ø Gold – Above Rs 10 lacs

v Additional Assured Advance (AAA) maximum 5 times up to 90 % (minimum Rs 25000/-) of Principal amount repaid

v 0.50 % discount in interest rate to housing loan borrowers if availing loan facility under bank’s scheme viz. “Baroda Loan for Consumer Durables”.

v Option to change interest from fixed rate to floating rate. Upfront payment of charges on outstanding balance @ 0.50 % for every year for the residual

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period of the loan maximum 2 % of the amount outstanding on the date of allowing conversion.

v Housing Loan for second house can also be given. v Bank has provided on line submission of loan application facility to the

applicants w.e.f. 20th July, 2008 and the applicants so received are to be disposed off with 48 hours. URL for online application is – http://www.bankofbaroda.co.in/ohla2009.

v Loan can be parked at any branch convenient to the borrower. v For determining total cost of the house, the cost of car parking place / area

located in the same building / compound / society can be considered. However, it should be noted that such car parking area should be specific, identifiable and incorporated in the sale agreement / allotment letter.

v Concession of 25 bps in interest rate available to the employee borrowers of preferred organization and to the group of borrowers has been withdrawn wef 11.08.2010.

v It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 1500/- per deviation with maximum of Rs 5,000/-.

v Following accounts should be classified and reported under Priority Sector Advances

Ø All Direct Housing Loans to individuals for purchase / construction of a dwelling unit per family, excluding loans granted by banks to their own employees, up to Rs 25 lacs irrespective of the location of the house.

Ø Loans for repairs to damaged houses – Up to Rs 1.00 lac in rural and semi urban and up to Rs 2.00 lac in Urban and metropolitan areas. However, loans sanctioned in excess of limits stated above shall not be considered as part of Priority Sector Advances for classification purposes.

CHECK LIST :

1. Application form duly filled 2. Pan Card Copy and ID 3. 2 Passport size photos (For applicants & Guarantors ) 4. 3 months latest salary slips with sign and seal from employer 5. Statement of 6 months operative bank accounts and salary account

statement. 6. Xerox copy of LIC / Insurance policies 7. Xerox copy of Passport 8. Other Bank loan details / statement 9. Three year IT returns and Form – 16 issued by employer 10. If applicant is a businessman 3 years of IT returns with financials’ statement

duly audited 11. Property papers and complete chain of previous title deeds 12. Latest tax paid receipt 13. Non Encumbrance Certificate for 30 years, if allotted by Development

Authority, update Non Encumbrance Certificate from the date of allotment 14. Sale agreement / Construction agreement 15. Approved plan copy 16. If construction is to be undertaking detailed estimate from the engineer

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17. Sale deed Registration should be as per sale Agreement value. 18. Mortgage charges as applicable in the particular state 19. Cheque for appropriate amount favouring Bank of Baroda for legal and

valuation etc. charges (upfront) 20. Additional Documents for Take over of Housing Loans from Present Bank : (a) Fore – closure letter (b) Copy of sanction letter for Housing Loan (c) Statement of Housing Loan from the beginning (d) List of Documents / Details of Title Deeds held with the present bank

REFERENCE CIRCULARS BCC/BR/97/185 18.07.2005 Master Circular – Baroda Housing Finance To Individuals BCC/BR/97/220 26.08.2005 Property / Personal Accident Insurance in case of Joint Borrowers BCC/BR/97/311 14.11.2005 Enhancement in Maximum Limit – Housing / Adv. Against Property

/ Pensioners / Defence Pensioners BCC/BR/98/ 08 07.01.2006 Take over of Retail Loans From Other Banks / HFCs / NBFCs BCC/BR/98/ 42 20.02.2006 Retail Lending – Modification In Terms Of Margin etc. BCC/BR/98/138 24.05.2006 Baroda Housing Finance – Rationalization of Processing & Other

Charges BCC/BR/98/142 31.05.2006 Baroda Housing Loan – Approval of Certain Institutions /

Corporates as Preferred Organizations BCC/BR/99/243 04.08.2007 Baroda Home Loan – Introduction of Reset Clause Under Fixed

Rate Option BCC/BR/99/278 20.09.2007 Home Loan – Modification in the Scheme for Staff under Product

for Public BCC/BR/100/89 31.03.2008 Baroda Home Loan Suraksha Bima BCC/BR/100/118 28.04.2008 Baroda Home Loan Suraksha Bima BCC/BR/100/198 19/07/2008 Baroda Home Loan – On Line Application BCC/BR/100/202 28/07/2008 Baroda Home Loan : Modification in Eligibility criteria and Margin

norms. BCC/BR/100/299 04.11.2008 Baroda Home Loan – Modification in Eligibility Criteria, Repayment

Capacity & Margin etc. BCC/BR/100/313 15.11.2008 Baroda Home Loan – Change in Interest Rate Bracket & Reset

Clause in Home Loan BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms. BCC/BR/101/93 28.03.2009 Realignment of existing Retail Asset Products and Deviation Norms BCC:BR:101:180 03.07.2009 Extension of Special Home Loan Scheme up to 31.12.2009 BCC/BR/101/277 12.09.2009 Online Home Loan Application BCC:BR:101:385 26.12.2009 Life Ins. Cover under tie -up arrangement with Kotak Life Insurance BCC:BR:102:26 28.01.2010 Housing Loan – Master Circular BCC:BR:102:46 11.02.2010 Realignment of loan buckets of loan limit more than Rs 50 lac . . .

. BCC:BR:102:218 10.08.2010 Withdrawal of concession 25 bps to group and preferred

organization employee borrowers BCC:BR:102:234 30.08.2010 Tie up Arrangement with India First Life Insurance (IFLC) BCC:BR:102:330 29.11.2010 Creation of new bracket of loan of ` 75 lac and above in Interest

rate BCC:BR:103:5 04.01.2011 Modification in Margin Norms BCC:BR:103:85 07.04.2011 Group Life Insurance Cover BCC:BR:103:210 21.07.2011 Increase in Maximum Home Loan Limit (Metro & Urban branches)

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BARODA HOME LOAN TO NRIs /PIOs / Overseas Citizen of India (OCI) PURPOSE: v Purchase of new residential house / flat v Construction of new dwelling unit v Purchase of old dwelling unit ( not more than 15 years old ) v Purchase of plot of land, subject to the condition that a house will be

constructed thereon within -3- years from the date of purchase of plot. v Repayment of loan already availed from any other Bank / HFC v For repair / renovation / extension of existing house v For purchasing / constructing second house / flat for the purpose of self

occupation. v Loan shall be considered for residential properties situated in India only. ELIGIBILITY: v Non Resident Indians (NRIs) holding Indian passport or Persons of Indian

origin (PIOs) holding foreign passport, singly or jointly. For this purpose person of Indian Origin means an individual ( not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan ) if Ø He at any time held Indian Passport or Ø He or either of his parents or any of his grand parents was a citizen of

India by virtue of the constitution of India or the Citizenship Act 1955, or

Ø The person is a spouse of an Indian citizen or a person referred to in sub clause (a) or (b) above.

v Principal applicant should be having a regular job abroad in a reputed Indian / foreign company, organization or government department holding a valid job contract / work permit for the minimum past 2 years,

v Must be employed / self -employed or having a business unit and staying abroad at least for 2 years.

v Must have minimum gross annual income equivalent to Rs 5 lacs per annum.

v An OCI has to be necessarily a PIO first and registered as OCI under section 7 A of the Citizenship Act 1955. A foreign national, who was eligible to become citizen of India on 26.01.1950 or was a citizen of India on or at anytime after 26.01.1950 or belonged to a territory that became a part of India after 15.08.1947 and his / her children and grand children, provided his / her country of citizenship allows dual citizenship in some form or other under the local laws, is eligible for registration as Overseas Citizen of India (OCI). Minor children of such person are also eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he / she will NOT be eligible for OCI.

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AGE: v Minimum age must be 21 years. However, the minimum age of co-borrower

can be 18 years. v Age of the borrower plus repayment period should not be beyond retirement

age or 65 years whichever is earlier. LIMIT & MARGIN: v For determining total cost of the house, the cost of car parking place / area

located in the same building / compound / society can be considered. However, it should be noted that such car parking area should be specific, identifiable and incorporated in the sale agreement / allotment letter.

PARTICULARS MINIMUM MAXIMUM

Purchase new / old house / construction

Rs 5 lacs Rs 100 lacs (R &SU) Rs 300 lacs (M & U)

For repairs / renovations / extensions Rs 1 lac Rs 25 lacs

For purchase of plot of land - Rs 50 lacs

Margin : For purchase New / old /const Purchase of plot

20 % 20 %

- -

For repairs / renovations / extensions in existing house

20 % of project cost

-

v The above is the maximum amount of loan. However, the actual quantum of loan should be arrived at after considering the income criteria, repaying capacity & margin.

INCOME CRITERA: v The maximum amount of loan should not exceed the following :

Ø In case of salaried persons -48- times of monthly income (Average of last 2 years) . Income may include incentive, commission / bonus etc. paid by the employer during the period.

Ø In case of others viz. professionals /self-employed / business persons etc. four times of average (last two years) annual income.

v Wherever income of the family members is clubbed, they should be made co-borrowers.

v Branch should obtain overseas bank account statement maintained by the applicant and analyze the same properly to ascertain the conduct of

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account and also to judge applicant’s other liabilities, repaying capacity etc.

v In case the applicant is not maintaining his NRE account with us, branch should obtain statement of such account maintained by the applicant with other bank in India.

REPAYING CAPACITY: v The loan amount will be determined by assessing the repaying capacity of

the applicant with reference to his / her income and other factors such as the profile of the employer, stability of his /her business, number of dependents, credit history and the position of his assets and liabilities. Ø Total deductions including proposed EMI should not exceed 60 % of

the gross income of the borrower. Ø For enhancing the repaying capacity, earning of spouse can be

combined if the spouse joins as co-borrower even if the spouse is not the co-owner of the property.

Ø Resident individuals have been granted general permission to repay the loans availed of from the Banks in Rupees in India by their NRI close relatives as defined under Section 6 of Companies Act 1956.

SECURITY: v Equitable / legal mortgage of property constructed / purchased or property

to be renovated / repaired v Personal guarantee of spouse / family member residing in India shall be

obtained. If spouse is also residing abroad personal guarantee of one / two persons resident in India having adequate worth.

REPAYMENT PERIOD: v Maximum 15 years including moratorium v Moratorium Period –

Ø For const. of new house – 1 month after completion of the house or maximum period 12 months from first disbursement.

Ø For purchase of new / old house/flat – one month after taking possession subject to max. 3 months from first disbursement.

Ø In case of repairs / renovation / extension – one month after completion of the work sub to max. moratorium up to 6 month

v Payment should be remitted from abroad through normal banking channels or out of funds in NRE / NRO account of the borrower are to be obtained.

v Close relatives of the borrower in India may also repay the installments of such loans, interest and other charges, if any, through their bank account directly to the borrower’s loan account.

PROCESSING / OTHER CHARGES: v Up to Rs 30 lacs – 0.50 % Minimum Rs 5000.00 + ST

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v Above Rs 30 lacs – 0.40 % Minimum – Rs 15000/- & Maximum Rs 50000.00 + Service Tax

v As a value proposition Bank provides free property and personal accident insurance cover to the housing borrowers, premium shall be borne by the bank.

v No prepayment / fore closure charges if the amount is partly or fully repaid from own resources by the borrower/s.

v Take over of the A/C by other Bank / HFCs – 0.10 % of balance outstanding for each year of the residual period of housing loan with no maximum.

INSURANCE: v The house / flat acquired with Bank Loan should be insured with Bank

Clause. As a value proposition the insurance premium will be borne by the Bank.

v Procedural details are similar to that of housing loan scheme for resident Indians.

CONVERSION FROM FIXED RATE TO FLUCTUATING INTEREST RATE : v Request from customers may be considered for allowing conversion for

allowing conversion from fixed interest rate to fluctuating interest rate option with prospective effect subject to the following : Ø If the account is regular Ø As one time offer from the bank Ø Upfront payment of charges on outstanding balance @ 0.50 % for

every year for the residual period of the loan maximum 2 % of the amount outstanding on the date of allowing conversion.

CHANGES IN STATUS OF THE BORROWER: v In case of change in status of the borrower during the tenure of the loan,

the repayment schedule may be reworked-out keeping in view his revised status / income / repaying capacity, age etc.

v The rate of interest shall also be refixed depending upon total tenure of the loan, as applicable to Housing Loans of Indian residents and effective on date of conversion. For this purpose tenure shall be computed from the date of first disbursement to the date of last installment.

v Such revised rate of interest shall be applicable prospectively on the outstanding balance in the account.

EXECUTION OF DOCUMENTS – POWER OF ATTORNEY: v The POA to be executed abroad shall be attested by the office of embassy of

the concerned country. v On receipt of duly executed POA in India the same is required to be

adequately stamped within 90 days from the date of receipt in India and

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same should be got registered with the Registrar of Assurances to make it enforceable till its revocation.

v The POA holder after fulfilling following conditions may be allowed to execute the documents :

v Matter should be referred to Zonal Office along with copy of POA for examination and authority to get the documents executed by the POA.

v Letter of confirmation from the Donor of POA to be obtained that power given by him / her is valid and has not been revoked as on date.

v Branch to confirm the Donor of POA about the execution of documents by the POA holder.

v Signature of the principal to be obtained on all documents on first available opportunity.

v The attorney / agent should also be a major and of sound mind. DEVIATION: v It has been decided by our Bank to levy the charges for deviations (financial

/ non financial) @ Rs 1500/- per deviation with maximum of Rs 5,000/-. REFERNCE CIRCULARS BCC/BR/98/09 07.01.2006 Housing Loan To NRIs / PIOs BCC/BR/98/157 08.06.2006 Baroda Housing Loan To NRIs /PIOs – Modification BCC/BR/98/ 08 07.01.2006 Take over of Retail Loans From Other Banks / HFCs / NBFCs BCC/BR/98/ 42 20.02.2006 Retail Lending – Modification in Terms of Margin etc. BCC/BR/99/98 30.03.2007 Home Loan To NRIs / PIOs BCC/BR/100/102 12.04.2008 Baroda Home Loan To NRIs / PIOs – Execution of Documents and

Operations through POA. BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms BCC/BR/101/93 28.03.2009 Realignment of existing Retail Asset Products and Deviation

Norms BCC:BR:101:346 26.11.2009 Inclusion of Overseas Citizen of India (OCI) in eligibility. BCC:BR:103:210 21.07.2011 Increase in Maximum Home Loan Limit (Metro & Urban branches) BCC:BR:103:269 20.09.2011 Repayment of Retail Loans of NRIs by Resident Close Relative.

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ADDITIONAL ASSURED ADVANCE (RESIDENT / NRIs / PIOs)

PURPOSE: v Any purpose excluding speculative or illegal purpose. ELIGIBILITY: v All existing housing loan customers, whose conduct of the account are good

and the account is classified as Standard. v There is no adverse feature / Auditors / Inspecting Officer’s remarks in

existing Housing Loan A/Cs. v Facility available to an A/C taken over from other bank / HFCs. v Age of the borrower + tenure of AAA loan should not exceed 65 years. v Loan can be availed maximum 5 times during the tenure of housing loan

provided previous AAA account is settled. LIMIT & MARGIN: v Minimum - Rs 25000/- v Maximum – Amount equal to 90 % of principal amount repaid v Margin – 10 % of the principal amount repaid. OTHER CHARGES: v Up to Rs 30 lacs – 0.50 % Minimum Rs 5000.00 + ST v Above Rs 30 lacs – 0.40 % Minimum – Rs 15000/- & Maximum Rs 50000.00 +

Service Tax NOTE : Rate prevailing on the date of sanction will remain fixed for the entire duration of the loan.

REPAYMENT: v By Equated Monthly Installments (EMI). First installment to fall due one

month after first disbursement. v Repayment Period as per borrower capacity to repay however in any case

not to exceed remaining period of housing loan. v In case of foreclosure of housing loan the repayment of AAA loan is to be

rescheduled in such a way that the loan (AAA) is liquidated maximum within a period not exceeding four years.

SECURITY: v Extension of equitable mortgage of the housing loan. v Personal guarantee of third party if the same is mentioned in Housing Loan v Valuation of Property should be less than one year and Value of Property

should cover both Housing Loan and AAA.

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DEVIATION: v It has been decided by our Bank to levy the charges for deviations ( financial

/ non financial ) @ Rs 3000/- per deviation with maximum of Rs 10,000/-. REFERNCE CIRCULARS BCC/BR/97/185 18.07.2005 Master Circular – Baroda Housing Finance To

Individuals BCC/BR/100/241 28.08.2008 AAA – Modification BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms BCC/BR/101/93 28.03.2009 Realignment of existing Retail Asset Products and

Deviation Norms

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BARODA HOME IMPROVEMENT LOAN

PURPOSE:

v For repair / renovation / improvement / extension of existing house. v Purchase of furniture / fixture / furnishing / other gadgets. (Only to those

borrowers who obtains loans for repairs / renovation under the scheme.) ELIGIBILITY: v All individuals singly or jointly owing a dwelling unit in their names. v Minimum age – 21 years. Maximum age of the borrower + repayment period

should not be beyond retirement for salaried person and 65 years in case of others.

v HUF & Staff members are not eligible.

LIMIT:

Upper ceiling limit Rs 10.00 lacs with the provision that the loan component for furniture / fixture / fittings / other gadgets should not exceed Rs 5.00 lacs, subject to followings :-

a. Salaried Persons 2 Times of Gross Annual Income

b. Businessman / self employed / Professional

3 Times of net average (last 3 years) annual income plus depreciation claim as individual capacity not by the business unit

Total deduction including repayments under various existing loans and EMI for the proposed loan should not exceed 60 % on the income.

MARGIN:

v 25 % of Project Cost which includes :-

Ø estimated cost of repairing / renovation / extension Ø cost of furniture / fixture / furnishing / other gadgets Ø stamp duty payable for creation of equitable mortgage Ø Maximum 5 % reduction in margin for group borrowers

OTHER CHARGES:

v Processing Charges: 0.50 % + ST of loan amount once at the time of

sanction. v No Charges for part / full payment from own resources.

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v Penalty @ 1 % on Prepayment Amount (including any such amount prepaid in last financial year)

DOCUMNTATION CHARGES:

LOAN LIMIT CHARGES ( S.T. TO BE INCLUDED ) Up to Rs 25,000/- NIL

Above Rs 25,000/- and up to Rs 2 lacs Rs 200/- Above Rs 2 lac and up to Rs 5 lacs Rs 500/- Above Rs 5 lac and up to Rs 10 lacs Rs 1,000/-

REPAYMENT: v Maximum 10 Years (including Moratorium Period). v Moratorium Period Maximum 6 Months SECURITY: v Equitable Mortgage of Property to be repaired / renovated. v Wherever customer desires that the mortgage need not be insisted upon,

the branch may as a special case accept at its discretion, security of adequate value (10% higher than the loan sanctioned) in the form of LIC Policies, NSCs etc.

OTHER CONDITIONS: v Insurance (as per the guidelines of Home Loan Scheme.)of the property is

required if the property is mortgaged v As in Home Loam Scheme penalty @ 1% for prepayment of account on

amount prepaid including any amount paid in the last financial year is to be charged.

v No penalty is payable on part prepayment. v Guidelines for issuing credit card are similar to Home Loan Scheme. v It has been decided by our Bank to levy the charges for deviations (financial

/ non financial) @ Rs 1500/- per deviation with maximum of Rs 5,000/-. REFERENCE CIRCULAR

BCC/BR/96/79 19.02.2004 Baroda Home Improvement Loan BCC/BR/96/170 20.04.2004 Baroda Home Improvement Loan – Clarification BCC/BR/99/168 30.05.2007 Baroda Home Improvement Loan BCC/BR/99/321 25.10.2007 Rationalization of Processing & Other Charges BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms BCC/BR/101/93 28.03.2009 Realignment of existing Retail Asset Products and

Deviation Norms

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INTEREST SUBSIDY SCHEME FOR HOUSING TO URBAN POORS (For EWS & LIG Segment)

PURPOSE : v The scheme is applicable for urban poors only. v To enable EWS and LIG households to avail affordable housing loans for

purchase of house/construction of new house with special emphasis to SC/ST/Minorities/Person with disabilities and Women beneficiaries identified by the Urban Local Bodies (ULBs).

v No loan to be sanctioned for purchase of plots of land. v For sanctioning the loan for construction of houses, plot with minimum area

of 25/40 sq. meter (as the case may be) should be already owned by the borrower.

ELIGIBILITY: v All individuals singly or jointly with close relatives households identified by

the ULBs. v For EWS: With average monthly income up to Rs 5000/- v For LIG: With average monthly income ranging between Rs 5001/- to Rs

10,000/- v Monthly income will be subject to revision from time to time. v Facility shall not be extended to “D”rated borrowers.

LOAN AMOUNT : v For EWS: The scheme will provide a subsidized loan for a maximum amount

of Rs 1.00 lac for a house at least of 25 sq.mts. Additional loans, if needed would be at unsubsidized rates.

v For LIG: Similarly loan for maximum loan amount of Rs 1.60 lac for a house at least 40 sq. mts. Will be admissible. However, subsidy will be given for loan amount up to Rs 1.00 lac only. Additional loans, if needed would be at unsubsidized rates. Ø For Salaried Class: Above mentioned limits are subject to maximum

36 times of last drawn (regular salary) Ø For Others: Subject to maximum 3 times of average annual income ( for last 3 years )

MARGIN: v For Construction of House: Minimum 20% margin on estimated cost of

construction v For Outright Purchase: 20% of purchase price of house

INTEREST: v As per the present interest rate structure on Housing Loans

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SECURITY: v Mortgage of house constructed / purchased out of the loan sanctioned. v However, there shall be no collateral security / third party guarantee for

loans up to Rs 1.00 lac excluding group guarantee. UNIFIED PROCESSING / PREPAYMENT CHARGES v There shall be NO unified Processing / Prepayment charges.

REPAYMENT PERIOD: v Maximum 20 years inclusive of moratorium period v Repayable in maximum 240 EMIs.

INSURANCE: v Free insurance cover for house property v Accidental Death of the Borrower to be provided under Baroda Home Loan

Suraksha Bima Scheme (with NICL) of the Bank applicable to all Home Loans. INTEREST SUBSIDY: v Under the scheme, a subsidy of 5% per annum will be provided for loans up

to Rs 1.00 lac. The Net Present Value (NPV) of this subsidy will be arrived at on the basis of notional discount rate of 9% p.a. (equivalent to Government Security rate) for the period of the loan and on the interest chargeable at the time the loan is contracted.

v Interest Subsidy (Net Present Value Subsidy) shall be provided to the Lender through Nodal Agencies designated by the NHB and HUDCO in advance on quarterly basis. The advantage of this method is : Ø The interest subsidy directly accrues to the benefit of the borrower

upfront reducing his principal amount Ø The EMI will be lower than in a situation where the interest subsidy is

disbursed through the loan period quarterly. OTHER CONDITIONS: v All other conditions not covered above shall be as per guidelines contained

in Master Circular no BCC:BR:97:185 dated 14.07.2005 and subsequent guidelines issued from time to time : BCC: BR: 99:292 dated 01.10.07 BCC: BR: 100:202 dated 28.07.08 BCC: BR: 100:299 dated 04.11.08 BCC: BR: 101:58 dated 21.02.09

REFERENCE CIRCULAR

BCC/BR/101/310 10.10.2009 Interest Subsidy Scheme for Housing to Urban Poors BCC/BR/102/282 08.10.2010 Revised norms of Income for EWS / LIG segment

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BARODA MORTGAGE LOAN

Presently under Mortgage backed facilities for various purposes other than Baroda Traders Loan and Loan to Doctors, our bank is having four products viz. Baroda Advance Against Property, Baroda Loan to Professionals, Baroda Loan against Property to NRIs /PIOs and Baroda Marriage Loan ( Since withdrawn w.e.f. 01.04.09 ) which are all secured by Mortgage of Immovable Property. To realign these products w.e.f. 01.04.2009 there shall be only one product for these purposes named as “Baroda Mortgage Loan”. PURPOSE: v For any legitimate purpose except for speculations. TYPE OF FACILITY: v Overdraft with reduction of limit in a phased manner. v Term Loan ELIGIBILITY: v Salaried Employees / Professional, Self Employed & Others who are income

tax assessee for last 3 years. v Age: Minimum: 21 years. Maximum : 60 years v The Customer age + Overdraft / Loan tenure should not exceed 65 years. v Minimum gross annual income : Rs 60,000/- LIMIT: (Subject to income criteria, repayment capacity & advance value of security Offered) v Minimum : Rs 1.00 lac v Maximum :

Ø Rural Branches : Rs 5 lacs Ø All other branches : Rs 100 lacs

(Subject to income criteria, repayment capacity and advance value of the property offered as security – the value of immovable property to be considered for calculating the margin should be Market value or the Distress sale value, whichever is lower) For loan to Professionals maximum limit shall be Rs 25 lacs.

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INCOME CRITERIA: v Salaried Class : 30 times of Gross monthly income v Others : 3 times of average ( last 3 years ) annual income v Income of all joint owners of the property who are co-borrowers can be

clubbed. v For agriculturists income certificate from appropriate revenue authority to

be obtained v Future income is not to be considered. v Co-borrower: The facility can be considered to an earning member /

members of a family against the property standing in the name of any member / members of the family. Members of family will comprise of spouse, father, mother, son/s, brother/s and brothers’ wives and daughter/s (subject to the condition that they are living in the family jointly, this is to be ascertained through interview of the applicants). In case of Loan to Professionals 20% of Average annual Business Turnover / Professional receipt.

REPAYMENT CAPACITY: v The income of the spouse may be considered for repayment also if he / she

are a co-borrower. v Total deductions should not exceed 60% of the gross income (including

installment / repayments towards proposed facility). MARGIN: v 50 % of the market value or the distress sale value, (whichever is lower) of

the immovable property proposed to secure the advance. (w.e.f. 01.06.09) v It has been decided by the Bank to allow a time of two years i.e. up to

May 31, 2011 for applicability of revised margin norms of 50% on all existing accounts as on May 31,2009 only in cases where :

Ø Account is performing, conduct of account is satisfactory and business

activity is being carried out properly. Ø There is satisfactory turnover in the account. Ø The account has not shown any signal of stress. Ø Interest is being serviced regularly.

v In all other cases, where above conditions are not complied with , revised norms have to be applied immediately at the time of due date of next review or within one year, whichever is earlier.

SECURITY: v Equitable mortgage of Un-encumbered residential or commercial property in

the name of the applicant/s.

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v Loan / Overdraft against Tenanted property should not be considered except in case where the property is given on lease to PSU, Reputed Govt. / Semi Govt. Enterprises, Large Corporate, Banks, Financial Institutions & Insurance companies.

v Equitable mortgage of Plot of land allotted / purchased from any Development Authority. [The allotment / sale of plot / land by such development authorities should not contain any clause stipulating fixed time limit for construction of house / commercial building.

THIRD PARTY GUARANTEE: v Up to Rs 10 Lacs – Guarantee may not be insisted upon v Over Rs 10 Lacs – Third party guarantee of an individual having adequate

worth. REPAYMENT PERIOD: v Overdraft : Maximum 10 years (Methodology would be as under)

Ø Reduction in operative limit proportionately (Minimum 10 % by end of each year, synchronizing with review of the account).

Ø Interest to be recovered separately as & when applied in the account. [Facility may be continued without reduction, subject to the condition that minimum annual turnover in account is at least 25 % of the limit sanctioned and conduct of the account is satisfactory] v Loan :

Ø Maximum 84 months in equal monthly installments (EMI) Ø Maximum moratorium – 3 months Ø Interest to be recovered separately as & when applied in the account

during moratorium period. Ø For Agriculturists – to be fixed as annual / half yearly repayment for

principal and interest considering the harvesting pattern and / or other sources of income.

PERIOD OF FACILITY: v 12 months subject to annual review. v At the time of review the limit is to be reduced as per repayment schedule. PROCESSING & OTHER CHARGES: v LOAN -

Ø 1 % of loan amount subject to : Minimum : Rs 1000/- + ST

Maximum : Rs 50000/- + ST

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v OVERDRAFT - Ø 0.35 % of loan amount

Minimum : Rs 1000/- + ST Maximum : Rs 25000/- + ST v Commitment charges @ 0.50 % p.a. in case of OD under the scheme

where limit is Rs 500 lacs & above and average quarterly utilization is < 75 % [BCC/BR/100/154 dated 06.06.2008]

VALUATION OF PROPERTY: v For property acquired within 5 years of sanction of loan, amount of

registered sale deed may be taken as valuation. v In other cases, the valuation of property should be done by our Banks

approved valuer or Government approved valuer as per extant guidelines at the time of considering the facility.

v The age of building should not exceed 25 years. v Building more than 25 years old may be accepted as security, subject to

approval of Regional Head, who will ascertain structural soundness of the building by obtaining opinion and certificate from approved engineer, about structural soundness of the building and its residual life. The residual life of the building should be at least 5 years more than the term of the loan / overdraft.

INSURANCE: v Insurance of the property mortgaged ( cost be borne by borrower ) for full

value excluding : Ø Cost of Land in case of constructed property Ø The plot of Land

LENDING POWERS: v Sanctioning authorities up to Grade / Scale III are authorized to sanction

facilities up to Rs 25 lacs and Authorities under SMG/S IV are authorized to exercise normal DLPs for sanction of limits under the scheme.

v In order to have a check on the quality of financing now the branches w.e.f. 17 August, 2009 will have to seek prior activity clearance from their controlling authorities before considering any new or review with increase proposal as under :

Ø Regional Head - For Term Loan Limits up to Rs 10 lacs Ø Zonal Head - For Term Loan Limits of more than Rs 10 lacs

Ø Zonal Head - For overdraft Limits irrespective of amount (Fresh as well as with increase)

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FREE CREDIT CARD: v Above Rs 2 lacs and up to Rs 5 lacs Paras International v Above Rs 5 lacs Exclusive MAIN DOCUMENTS REQUIRED TO BE SUBMITTED BY THE APPLICANT:

v I.T Returns for past 3 years v In case the overdraft amount exceeds Rs 5 lacs copy of Latest Income Tax

Assessment Order. v Form No 16 along with salary certificate from the Employer. v Original title deeds of the property offered for mortgage v Latest maintenance, Water Tax, Municipal Tax and any other such taxes

paid receipt. v Non encumbrance letter from Co-op Society. v Permission to create Equitable Mortgage from society. v Confirmation of society that Bank’s lien on society records is noted. v Last 6 months statement of accounts of Main Bank account in case main

account is not with the Branch. LEGAL OPINION ABOUT TITLE DEEDS:

v Legal opinion to be obtained from Bank’s approved advocate. v Actual Legal fees to be borne by the borrower. However, Branches may

negotiate with the local empanelled advocates to contain the fee to a maximum of ̀ 300/- per case.

TAKE OVER OF MORTGAGE LOAN ACCOUNTS FROM OTHER BANKS:

v Mortgage loan taken from other banks / financial institutions can be taken

over by following the extant guidelines in respect of take over of borrowal accounts

OTHER CONDITIONS: v Penal interest – 2 % p.a. on overdue amount v Legal opinion to be obtained from Bank’s approved advocate v Actual Legal fees to be borne by the borrower. v No penalty for pre mature payment v With a view to take care of the periodical reduction in the operative limit,

following clause be added in the loan application and sanction letter – in case of overdraft facility : “The Bank shall have the right to progressively reduce the limit of overdraft sanctioned hereby every year / month from time to time during the availment of the OD limit. However, it is agreed and understood that such commitment for progressive reduction in the overdraft limit is and will be

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without prejudice to the rights of the Bank to call for accelerate and demand repayment of entire outstanding amount in overdraft limit at any time and from time to time”.

v It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-.

POWER OF DEVIATION: v Powers of Financial Deviations which have a direct impact on Profit & Loss

A/C of Bank shall not be exercised below the level of BCC. However non financial deviations may be considered as per powers delegated.

REFERENCE CIRCULAR

BCC/BR/97/179 04.07.2005 Baroda Advance Against Property BCC/BR/97/311 14.11.2005 Enhancement in Maximum Limit – Housing / Adv. Against

Property / Pensioners / Defence Pensioners BCC/BR/98/59 03.03.2006 Baroda Advance Against Property – Modification BCC/BR/99/376 24.12.2007 Baroda Advance Against Property – Revision in Interest Rate BCC/BR/100/23 24.01.2007 Baroda Advance Against Property – DLP BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms BCC/BR/101/93 28.03.2009 Realignment of existing Retail Asset Products and Deviation

Norms BCC:BR:101:141 15.05.2009 Reasons for high delinquencies in the product BCC:BR:101:150 26.05.2009 Modification in Margin Norms BCC:BR:101:242 10.08.2009 Activity Clearance w.e.f. 17.08.09 BCC:BR:101:261 31.08.2009 Revised Modification in Margin Norms -

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BARODA ASHRAY (REVERSE MORTGAGE LOAN) PURPOSE: v For Genuine needs other than speculative, trading purposes v To supplement the cash flow stream of Senior Citizens in order to address

their financial needs. v [NOT FOR SPECULATIVE / TRADING PURPOSE] TYPE / NATURE OF FACILITY: v Combination of monthly annuity payments and lump sum payments for

medical / other emergencies / exigencies of the family as well as up-gradation / renovation / home improvement / repayment of an existing loan / insurance of residential property subject to maximum 10 % of total loan limit assessed.

v Nature of Facility : Term Loan ELIGIBILITY: v Should be Senior Citizen of India, above 60 years of age. v Married couple will be eligible as joint borrowers provided one of them is

above 60 years of age and spouse is not below 55 years of age at the time of application.

v Should be the owner of residential property located in India in his / her own name.

v Residential property should be used as permanent residence (fully self occupied).

v Ex-Staff members shall also be eligible to avail loan under the product. LIMIT & MARGIN: v The maximum loan amount including interest for entire life shall be

restricted to Rs 1 crore, subject to the margin of 20 % on present market value of the property.

v The borrower may be counseled to keep 5 % of limit assessed for medical / any other unforeseen financial requirements in entire life span.

v The annuity to be computed considering the life expectancy of 80 years (treating the loan tenure of 20 years). Initially the payment shall be made for 15 years and if any of the borrowers survives, the loan may further be extended for next 5 years.

RIGHT TO RESCISSION: v The borrower shall be given 7 business days to cancel the transaction, the

right of rescission. v If the borrower does not intend to avail the loan, processing charges may be

waived

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v However, if loan amount has been disbursed, the entire loan amount will need to be repaid along with the applicable interest.

PROCESSING CHARGES: v 0.20 % subject to maximum of Rs 10,000/- (one time) + applicable Service

Tax. REPAYMENT: v The loan shall become due and payable only when the last surviving

borrower dies or like to sell the home / permanently moves out of the home for aged care or re latives.

v The loan will become due for recovery & payable after death of last surviving spouse.

v Settlement of loan by the proceeds received out of sale of residential property.

v The borrower(s) or his / her / their estate shall be provided with first right to settle the loan along with accumulated interest, without sale of property. A reasonable period of 2 months may be provided when repayment is triggered, for house to be sold.

v Surplus if any, remaining after settlement of the loan with accrued interest, shall be passed on to the estate of the borrower.

v Tenure: 15 years. The tenure may further be extended till survival of the borrower/ s subject to the advance value of the property.

SECURITY: v Simple / Equitable mortgage of the residential property. v The property to be valued by Bank’s / Govt. approved valuer at every 05

year v The age of building should not exceed 40 years ( Reg. Head may relax ) v Insurance of the residential property mortgaged (cost to be borne by

borrower). v Commercial property will not be taken as a security under the product. OPTION TO ADJUST PAYMENTS: v Based on valuation of the property at every 5 year bank can revise amount. v Borrower shall be provided with an option to accept such revised offer. FORECLOSURE : v If borrower has not stayed in the property for a continuous period of one

year. v If borrower fails to pay property taxes or maintain and repair the residential

property or fails to keep the home insured, the bank reserves the right to insist on repayment of loan bringing the residential property to sale and

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utilizing the sale proceeds towards repayment of the loan amount with interest

v If borrower declares him / her/ themselves bankrupt v If the Govt. authorities seeks to acquire the property v If the Govt. condemns the said property ( e.g. for health or safety reasons) OTHER CONDITIONS:

v The borrower should have clear title to the property v In case of lease hold property, residual period of lease should be at least

equal or more of the difference of present age of the borrower and normal life expectancy age of 80 years + 5 years

v For income tax payee – no income tax payment in arrear v No prepayment charges for full / partial pre-payment of the loan at any

time. v It has been decided by our Bank to levy the charges for deviations (financial

/ non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-.

REFERENCE CIRCULAR BCC/BR/99/346 17.11.2007 Baroda Ashray BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms

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BARODA TRADERS LOAN

PURPOSE: v working capital requirement v Development of shop (e.g. purchase of equipment, P.C., air-conditioner,

furniture etc. and not for purchase of shop) for need based requirements subject to a maximum of 25 % of the working capital limit sanctioned. Working capital advance & shop development loan together should not exceed Advance Value of collateral security or Rs 200 lacs (whichever is less).

v Non fund based facilities (i.e. Bank Guarantee and Letter of Credit etc.) ELIGIBILITY: v Individuals, Proprietorship, Partnership concerns, Firms, Private Ltd. Cos.

and Regd. Co-op societies engaged in trade of any commodity / goods required by the community and trading in them is not prohibited by law or opposed to public interest.

v The business units should have been established in the line of business for a minimum period of 2 years.

v Trading units established by our existing customers with satisfactory dealings of their close relatives, even if these are established for less than 2 years.

v Trading units of non – customers having less than 2 year’s establishment, with the prior approval of Regional authority.

LIMIT & MARGIN: v Minimum : Rs 25,000/- & Maximum : Rs 200 lacs v Advance value of collateral security with margin :

Ø 10 % on FDR Ø 15 % on surrender value of LIC policies, NSCs and Govt. Bonds Ø 50 % on approved shares / bonds Ø 40 % on realizable market value of immovable property ( w.e.f.

16.12.2009 ) OR v 20 % of projected sales ( whichever is less ) PROCESSING & SERVICE CHARGES: v Fund based – @ 0.35 % Minimum Rs 1000/- & No Maximum + service tax. v Non Fund based – As per extant guidelines

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v Commitment charges @ 0.50 % p.a. in case of OD under the scheme where limit is ` 500 lacs & above and average quarterly utilization is < 75 % [BCC/BR/100/154 dated 06.06.2008]

REPAYMENT: v Overdraft : 12 months subject to annual review. v Demand Loan : Maximum 60 EMI ( depending on repayment capacity ) SECURITY: v Tangible collateral securities in the form of mortgage of land (not

agricultural land) and building. [ Property to be mortgaged may be ONLY in the name of either Borrower, Proprietor, Partner, Director or their close relative ( viz. spouse, parent, brother, sister, son, daughter ) who should stand as guarantor.

v NSCs, LIC policies, KVPs, Govt. Bonds, FDRs, standing in the name of borrower / proprietor / partner / director only.

v Age of Property :

Ø In case of Loans : ü Age of property should not be more than 25 years old. However

for properties which are older than 20 years but not more than 25 years, branch is to ascertain structural soundness of the property by obtaining an approved engineer’s certificate, certifying that structural soundness as well as residual life of the building should be at least 5 years more than the repayment period of the loan.

ü For dwelling units which are older than 25 years, Regional Head may authorize such cases on selective basis, subject to ascertaining structural soundness of the building by obtaining an approved engineer’s certificate, certifying that structural soundness as well as residual life of the building should be at least 5 years more than the repayment period of the loan.

Ø In case of Overdraft :

ü Building less than 25 years old guidelines applicable to general advance to be followed.

ü Older than 25 years – the branch will be required to carry out inspection of the property every year at the time of review of facility and obtain structural soundness report from architect every 3rd year along with valuation of property.

ü In case any defect is observed during inspection of the security or in architect’s report, branch will be required to ensure substitution of the security having requisite value immediately or ensure liquidation of the facility at the earliest but not later than 12 months period in any case.

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OTHER CONDITIONS: v Undertaking from the borrower declaring that he does not owe any overdue

statutory dues like Sales Tax, Income Tax, Corporation Tax, Professional Tax etc. and has obtained / renewed licenses from concerned authorities required for trading in the merchandise / goods every year.

v Property mortgaged should be insured as per Bank’s norms. Obtaining insurance against the stocks cover may not be a condition for sanction of the facility. However, branches may counsel their borrowers to have the stock insured in their own interest at their cost.

v Borrowers to route the sales and all other transactions through their Overdraft / Current A/C (in case of loan) with the branch.

v Stock statement to be obtained once a year i.e. as of last day of February, by 10th of March every year.

v Borrowers will not be considered for working capital assistance both under Baroda Traders Loan as well as under our usual scheme for Retail Traders simultaneously.

v Credit rating is to be done as per extant guidelines. v Inspection to be carried out once in a year and inspection report to be kept

on record. v Obtaining of financial statements. Balance Sheet and Profit and Loss A/C is

dispensed with. However, declarations on annual sales supported by Returns / Assessment on Sales Tax, Income Tax, etc. be obtained and kept on record at the time of annual review, In order to undertake ‘ Credit Rating’ in ‘Smaller Credit Rating’ module for loans above Rs 25 lacs, branches are required to obtain all necessary financial returns.

v As per I. Tax rules the firms having annual sales turnover of Rs 40 lacs and above are compulsorily required to get their books and A/C s audited. Therefore, traders enjoying such facilities of limit over Rs 25 lacs should furnish audited balance sheet and the branch concerned is required to ensure that the funds are used in business and are not diverted. Besides, the stocks etc. wherever possible should be Hypothecated. However, the bimonthly inspection of stock and stock statement may be waived.

v Loans up to Rs 20 lacs to be classified as Priority Sector advance. v Branch to display Bank’s name as financer. v Valuation of immovable property offered as security is to be done by Bank /

Govt. approved valuer. Valuation is to be done once in 3 year. v It has been decided by our Bank to levy the charges for deviations (financial

/ non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-. REFERENCE CIRCULAR BCC/BR/99/268 06.09.2007 Revised Master Circular – Baroda Traders Loan BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms BCC:BR:101:141 15.05.2009 Reasons for high delinquencies in the product BCC:BR:101:150 26.05.2009 Modification in Margin Norms BCC:BR:101:261 31.08.2009 Revised Modification in Margin Norms - BCC:BR:101:373 16.12.2009 Modification in Margin norms and interest rates

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BARODA EDUCATION LOAN

As we are aware that our Bank was having different products related to Education Loan. These Loan Schemes vide Bank’s Circular no. BCC: BR: 101:93 dated 28.03.2009 have been realigned for operational convenience under the name “BARODA EDUCATION LOAN” as below: 1) Baroda Education Loan ( Baroda Vidya / Gyan / Scholar ) 2) Baroda Loan For Career Development 3) Baroda Loan for Skill Dev. of Construction Workers. For the convenience of the readers the salient features of the schemes as mentioned above are detailed separately as under: BARODA VIDYA TARGET GROUP: v Parents of students pursuing school education from Nursery to Standard XII. ELIGIBILITY: v Should be an Indian national residing in India. v Student should have secured admission to a Recognized institution for any of

the following courses : Ø Stage I : Nursery to V th STD. Ø Stage II : VI th to VIII th STD Ø Stage III : IX th to XII th STD. Ø Evening courses of institutes approved by State / Central Govt.

v No minimum qualifying marks v Loan to be granted in the name of father / mother of the student. COVERAGE OF EXPENSES FOR: v Fee payable to college / school. v Examination / Library / Laboratory fee v Fee and other charges payable to hostel. v Purchase of books / equipments/ instruments / uniforms. v Personal computers / Laptops / wherever required. v Caution deposit / building fund / refundable deposit supported by

institution bills / receipts. [Cost of External Coaching / Tuition is Not to be Considered]

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QUANTUM OF FINANCE : v Need based finance subject to future payment capacity based on projected

future earning which should commensurate with past placement records and average packages offered to the pass outs of the college. The information should be reflected in the appraisal note.

v Maximum Rs 4.00 Lacs (with yearly sub limits) v Loan for the next stage can be considered even though loan sanctioned

earlier for previous stage is outstanding provided conduct of the same is satisfactory.

MARGIN: - NIL – REPAYMENT PERIOD: v Yearly sub limit is repayable in 12 equal monthly installments v Repayment to start 12 months after first disbursement of each year’s loan

amount. REPAYMENT CAPACITY: v Total deductions including the proposed EMI should not exceed 60 % of total

income. v The income of spouse, wherever spouse is work ing also to be considered. PROCESSING & DOCUMENTATION CHARGES:

-NIL – FINANCING BRANCH: v Loan may also be considered at the place of posting / service of parents or

which is in close proximity to the permanent residence of parents. SECURITY: v No security. In case the loan is given for purchase of computer or for

creation of any other asset the same is to be hypothecated to the Bank. DISBURSEMENT: v Directly to school / institution / hostel term / year wise or to bookseller /

shop for purchase of books / instruments / equipments. v Next year’s disbursement to be made only after student has passed the

current year annual examination & progress report / mark sheet is kept on record.

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OTHER CONDITIONS: v A stamped declaration / an affidavit confirming that no Educational loan is

availed from other banks / institutions. v No dues certif icate need not be insisted upon v 1 % concession in rate of interest to loans sanctioned on or after 1.11.2004

for the benefit of Girl student. REPHASEMENT: v The rephasement of repayment in genuine cases is considered by the next

higher authority. CLASSIFICATION OF ADVANCE : Priority Sector OTHER CONDITIONS: v Simple interest to be charged at monthly rest during moratorium period. v Penal interest @ 2 % on overdue amount if the loan amount exceeds Rs 2

lacs. v 1% concession in rate of interest to loans sanctioned on or after 1.11.2004

for the benefit of girl student. v No documentation & processing charges. v No exchange on Drafts issued in favour of school or student. v A stamped declaration / an affidavit confirming that no Educational loan is

availed from other banks/ institutions for the child for whom loan is sanctioned by us and shall not avail educational loan from any other bank without obtaining NOC from our bank during the pendency of our educational loan. No dues certificate need not be insisted upon.

v Bank has provided on line submission of loan application facility to the applicants w.e.f. 08th February, 2008 and the applicants so received are to be disposed off with 48 hours. URL for online application is – http://www.bankofbaroda.co.in/oela2009.

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BARODA GYAN TARGET GROUP: v Students pursuing Graduation, Post graduation, Professional, Teachers

Training Course, Nursing Course, B.Ed. & other courses in India. ( provided these courses are degree / diploma courses and not certificate Courses )

COURSES ELIGIBLE : v Graduation / Post Graduation / Professional courses and courses like ICWA,

CA, CFA etc. as well as courses conducted by IIM, IIT, IISc, XLRI, NIFT etc. v Evening courses of approved institutes. v Other courses leading to diploma / degree etc. conducted by colleges /

universities approved by UGC / Govt. / AICTE / AIBMS / ICMR etc through Entrance Test / Merit based selection process after completion of HSC (10 plus 2 or equivalent). Where selection process purely based on marks obtained in qualifying examination is not the criterion for admission and in such cases, sanctioning authority to adopt appropriate criteria based on employability and reputation of the institution concerned.

v Teachers Training Course, Nursing Course, B.Ed. etc. STUDENT ELIGIBILITY: v Should be Resident Indian. v Secured admission to professional / technical courses in India through

Entrance Test / Merit Based selection process. COVERAGE OF EXPENSES: v Fee payable to College/Institution/University e.g. Exam, Library or

Laboratory fee etc v Purchase of books / equipments / instruments / uniforms / Computers =

Laptop etc. v Caution deposit, building fund, refundable deposit supported by institution

bills etc v Other expenses required to complete the course – study tours, project

works, thesis etc [Cost of External Coaching / Tuition is Not to Be Considered]

QUANTUM OF FINANCE : v Need based finance subject to future payment capacity based on projected

future earning which should commensurate with past placement records and

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average packages offered to the pass outs of the college. The information should be reflected in the appraisal note.

v Maximum Rs 10.00 lacs MARGIN: v Up to Rs 4.00 lacs : NIL v Above Rs 4.00 lacs : 5 % v Scholarship / assistantship if any received to be included in the margin v Margin may be brought in on year to year basis as and when disbursements

are made on a pro rata basis. PROCESSING & DOCUMENTATION CHARGES: NIL REPAYMENT & MORATORIUM PERIOD: v Course period + 1 year or 6 months after getting job, whichever is earlier. v For loans up to Rs.7.50 lac : Maximum 120 installments v For Loans above Rs.7.50 lac : Maximum 180 installments v Extension of time to complete the course may be permitted for a maximum

period of 2 years and in such case the moratorium period will extend accordingly.

v The accrued interest during moratorium period to be added to the principal for fixing the Equated Monthly Installment (EMI) for repayment of the loan amount.

FINANCING BRANCH: v Loans up to Rs 4.00 lacs: Loan may also be considered at the place of

posting / service of the parent after obtaining and recording the proof of permanent residence for future reference.

v Loans above Rs 4.00 lacs: Loans may also be considered at the place of posting / service of the parent who is either co-borrower or guarantor of the loan as the case may be, after obtaining and recording the proof of permanent residence for future reference.

SECURITY: v Up to Rs 4.00 lacs – No Security v Above Rs 4.00 lacs & up to Rs 7.50 lacs –Third Party guarantee along with

assignment of future income. v Above Rs 7.50 lacs - Collateral and third Party guarantee along with

assignment of future income. v The Loan documents to be executed by both – student and parent /

guardian. v The Regional Head may, at its discretion, waive third party guarantee.

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DISBURSEMENT: v Directly to school / institution / hostel – term wise / year wise, in stages. v Directly to book seller / shop for purchase of books, instruments,

equipments etc. v Next year disbursement to be made only after student has passed the

current year annual examination & progress report / mark sheet to that effect is produced.

v In case student does not secure hostel facility with educational institute, he may be allowed to make his own arrangement if required. Fees of lodging / boarding in such cases to be paid directly to concerned establishment.

REIMBURSEMENT: v The fee etc. paid by the student in first year from own resources may be

reimbursed after obtaining necessary proof of payment. v In genuine cases, expenses for purchase of books etc. may be reimbursed

after obtaining necessary proof of purchase and payment. DETAILS OF EXPENSES: v The details of expenses for the entire course period to be obtained from

college / institutions. PROGRESS REPORT: v Progress report to be obtained at regular intervals & be kept on record. FREEBIES: v Debit card to the student on his account. CLASSIFICATION OF ADVANCE : v Priority Sector ADDITIONAL LOAN / ENHANCEMENT IN LIMIT: v Loan for higher studies in India under Baroda Gyan can be considered even

though loan sanctioned earlier under Baroda Vidya is outstanding; subject to repaying capacity and provided conduct of the loan account for previous stage is satisfactory.

v In this case, the holiday for repayment granted initially, will stand extended further as per the duration of the course.

REPHASEMENT:

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v The rephasement of repayment in genuine cases be considered by the next higher authorities.

INSURANCE: v W.e.f. 01.12.2008 Bank entered in tie up arrangement with Kotak Life

Insurance for all fresh sanctions / disbursement made to Education Loan Borrowers to provide life insurance cover to them.

v Family of the borrower is not required to repay the loan in case of death of student borrower and outstanding cover amount due, will be paid by Insurance provider (KLI) as per cover schedule.

v Thus slippage of the account into NPA category due to death of the borrower can be avoided.

v Life cover is available against payment of one time premium and amount of premium is based on the amount and tenure of the loan which may be financed by bank repayable in EMI along with EMI of Education Loan.

v In case of foreclosure of loan, proportionate excess premium paid shall be refunded by KLI.

v The insurance cover will generally be available to educational loan borrowers to the maximum extant of loan amount sanctioned a s under :

Ø For study in India : Rs 10 lacs Ø For Study abroad : Rs 20 lacs Ø Maximum : Rs 50 lacs

v Premium is to be deposited in CBS A/C of KLI simultaneously.

OTHER CONDITIONS: v Simple interest to be charged at monthly rest during moratorium period. v Penal interest @ 2 % on overdue amount if the loan amount exceeds Rs 4

lacs. v 1 % concession in rate of interest to loans sanctioned on or after 1.11.2004

for the benefit of girl student. v 1 % interest concession is provided if interest debited during repayment

holiday / moratorium is serviced. v No documentation & processing charges. v No exchange on Drafts issued in favour of school or student. v A stamped declaration / an affidavit confirming that no Educational loan is

availed from other banks/ institutions. v No dues certificate need not be insisted upon. v Bank has provided on line submission of loan application facility to the

applicants w.e.f. 08th July, 2008 and the applicants so received are to be disposed off with 48 hours. URL for online application is – http://www.bankofbaroda.co.in/oela2009.

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BARODA SCHOLAR TARGET GROUP: v Students going abroad for Professional / Technical studies. ELIGIBILITY OF COURSES: v Graduation: Job oriented professional / technical courses of reputed

universities. v Post Graduation: MCA, MBA, MS. Etc. v Courses conducted by CIMA – London, CPA in USA etc. STUDENT ELIGIBILITY: v Should be an Indian National v Secured admission to Professional / technical courses abroad through

Entrance Test / Merit Based Selection Process. COVERAGE OF EXPENSES : v Admission / Tuition Fees to College / University & Hostel / Mess charges. v Examination/Library/Laboratory Fee/Purchase of Books /equipments /

uniform etc. v Caution deposit / building fund / refundable deposit supported by

institution bills / receipts. v One way Travel expenses / passage money v Purchase of computers if essential for completion of the course. v Any other expense required to complete the course e.g. study tour, project

work, thesis etc. QUANTUM OF FINANCE : v Need based finance subject to future payment capacity based on projected

future earning which should commensurate with past placement records and average packages offered to the pass outs of the college. The information should be reflected in the appraisal note

v Need based finance maximum of Rs 20.00 lacs. MARGIN: v Up to Rs 4.00 lacs : Nil v Above Rs 4.00 lacs : 15 % v Margin may be brought-in on year-to-year basis as and when disbursements

are made on a pro rata basis. REPAYMENT HOLIDAY / MORATORIUM PERIOD:

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v Course period + 1 year or 6 months after getting job, whichever is earlier. REPAYMENT PERIOD: v For loans up to Rs.7.50 lac : Maximum 120 installments v For Loans above Rs.7.50 lac : Maximum 180 installments v If the student is not able to complete the course within the scheduled time

for completion of course may be permitted for a maximum period of 2 years.

v In case of above extension, moratorium period will be extended accordingly. v If the student is not able to complete the course for reasons beyond his

control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course.

v The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Installments (EMI) be fixed.

FINANCING BRANCH: v Loans up to Rs 4.00 lacs: Loan may also be considered at the place of

posting / service of the parent after obtaining and recording the proof of permanent residence for future reference.

v Loans above Rs 4.00 lacs: Loans may also be considered at the place of posting / service of the parent who is either co-borrower or guarantor of the loan as the case may be, after obtaining and recording the proof of permanent residence for future reference.

PROCESSING CHARGES: v 1 % of the limit sanctioned to be recovered as upfront charges for issuing

Capability certificate, which shall be refunded, if applicant avails loan. SECURITY: v Up to Rs 4.00 lacs – No Security v Above Rs 4.00 lacs and up to Rs 7.50 lacs – Collateral in the form of a

suitable third party guarantee. v Above Rs 7.50 lacs – Collateral security equal to 100 % of the loan amount or

suitable third party guarantee along with the assignment of future income of the student for payment of installments.

v The Loan documents to be executed by both – student and parent / guardian.

v The Regional Head may, at its discretion, waive third party guarantee. v The security can be in the form of land / building / Govt. Securities / Public

Sector Bonds / Units of UTI, NSC,KVP,LIC policy, gold, shares / debentures, bank deposit, Relief Bonds etc. standing in the name of student / parent / guardian or any other third party with suitable margin. Margin on securities to be considered as per extant guidelines.

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v Wherever the land / building are already mortgaged, the unencumbered portion can be taken as security on 2nd charge basis provided it covers the required loan amount.

DISBURSEMENT: v No application for educational loan received should be rejected without the

concurrence of the next higher authority. v The loan to be disbursed in stages as per the requirement / demand directly

to the institutions / vendors of books /equipments / instruments to the extent possible.

PROGRESS REPORT: v Progress report to be obtained at regular intervals and be kept on record. INSURANCE: v W.e.f. 01.12.2008 Bank entered in tie up arrangement with Kotak Life

Insurance for all fresh sanctions / disbursement made to Education Loan Borrowers to provide life insurance cover to them.

v Family of the borrower is not required to repay the loan in case of death of student borrower and outstanding cover amount due, will be paid by Insurance provider (KLI) as per cover schedule.

v Thus slippage of the account into NPA category due to death of the borrower can be avoided.

v Life cover is available against payment of one time premium and amount of premium is based on the amount and tenure of the loan which may be financed by bank repayable in EMI along with EMI of Education Loan.

v In case of foreclosure of loan, proportionate excess premium paid shall be refunded by KLI..

v The insurance cover will generally be available to educational loan borrowers to the maximum extant of loan amount sanctioned a s under : Ø For study in India : Rs 10 lacs Ø For Study abroad : Rs 20 lacs Ø Maximum : Rs 50 lacs

v Premium is to be deposited in CBS A/C of KLI simultaneously. OTHER CONDITIONS: v A stamped declaration / an affidavit confirming that no Educational loan is

availed from other bank / institutions for the student for whom loan is sanctioned by us and shall not avail educational loan from any other bank without obtaining NOC from our bank during the pendency of our educational loan be obtained. No dues certif icate need not be insisted upon.

v Penal interest @ 2 % p.a. be charged for loan amount above Rs 4.00 lacs for the overdue amount and period.

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v Simple interest to be charged during the repayment holiday / moratorium period.

v 1 % interest concession be provided if the interest debited during the repayment holiday is serviced.

v 1 % concession in rate of interest to loans sanctioned on or after 1.11.2004 for the benefit of girl students.

v Bank has provided on line submission of loan application facility to the applicants w.e.f. 08th Feb, 2008 and the applicants so received are to be disposed off with 48 hours. URL for online application is – http://www.bankofbaroda.co.in/oela2009.

FREEBIES: v Drafts in foreign currencies drawn on our branches / subsidiaries required in

favour of college / university / student will be issued free of exchange / commission.

ADDITIONAL LOAN / ENHANCEMENT IN LIMIT : v If the student wants to pursue further education, additional loan /

enhancement in limit may be considered within the overall ceiling limit. v In this case, the holiday for repayment granted initially, will stand extended

further as per the duration of the course. REPHASEMENT: v The rephasement of repayment in genuine cases be considered by the next

higher authority. REFERENCE CIRCULAR BCC/BR/96/380 08.11.2004 Master Circular – Educational Loan BCC/BR/97/15 24.01.2005 Educational Loan – Concession in Interest to Women BCC/BR/97/76 18.03.2005 Educational Loan to Meritoriou s / Poor Students BCC/BR/97/161 16.06.2005 Educational Loan – Amendments BCC/BR/97/215 25.08.2005 Education Loan – Clarifications ( Children of Staff Members

) BCC/BR/98/318 20.11.2006 Educational Loan – Disposal of Loan Application BCC/BR/100/29 06.02.2008 On Line Application BCC/BR/100/38 13.02.2008 Baroda Educational Loan – Preventive Vigilance BCC/BR/100/101 12.04.2008 Baroda Educational Loan – Master Circular BCC/BR/100/319 18.11.2008 Baroda Educational Loan – Life Insurance Cover- Tie up with

Kotak Life Insurance BCC/BR/101/93 28.03.2009 Realignment of existing Retail Asset Products and Deviation

Norms BCC/BR/101/260 01.09.2009 Education Loan for Teacher’s Training Courses / Nursing

Courses / B.Ed. BCC/BR/101/277 12.09.2009 Online Application - URL BCC/BR/103/85 07.04.2011 Group Life Insurance Cover BCC/BR/103/343 30.11.2011 Modification in Education Loan Product

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EDUCATION LOAN INTEREST SUBSIDY SCHEME

TARGET GROUP: v All the students belonging to Economically Weaker Section (EWS) pursuing

Technical / Professional courses (after XII) / Education studies in India. COURSES ELIGIBLE : v Technical / Professional Education studies (after class XII) in India. ELIGIBILITY: v Student should belong to Economically Weaker Section (not on social

background) having parental family income from all sources not more than ` 4.5 lacs per annum.

v Applicant should be a Resident Indian. v He / She should have secured admission to the course through Entrance Test

/ Merit based selection process. SALIENT FEATURES OF THE SCHEME ARE AS UNDER : v Maximum loan limit under this scheme would be Rs 10 lac v Government of India will provide full interest subsidy during the period of

moratorium period on loans taken by students from the Bank on or after for the courses starting from Academic year 2009-10.

v After the moratorium period interest will be borne by student. v Interest rates charged on the loan shall be as per Interest rates applicable

under our Education Loan Scheme. v Interest subsidy shall be available to the eligible students only once, either

for first undergraduate degree course or the post graduate degree / diplomas in India. Interest subsidy shall, however, be admissible for integrated courses (graduate + post graduate)

v Subsidy shall not be available if a student discontinues due to medical grounds for which necessary documentation to the satisfaction of the Head of Education Institution will have to be given.

v There would be tag / marker on the degree and mark sheet of the student indicating his / her repayment liabilities.

v Nodal Bank for the scheme shall be Canara Bank. v Scheme is applicable from academic year 2009 – 10. (Irrespective of the

date of sanction). Interest on any amount disbursed for courses starting before the academic year 2009-10 would not be considered for subsidy.

v List of Technical / Professional courses for which the scheme would be applicable shall be publicized from time to time by UGC and AICTE.

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v Disbursement of subsidy to the Banks will be on half yearly / yearly basis as decided by Ministry of HRD, Govt of India.

v clarification from Indian Banks’ Association vide their letter no. SB/Cir./10-21-ISS/3175 dated 20.05.2011 that Ministry of HRD has decided to extend the interest subsidy scheme in respect of courses where the fee structure (all inclusive) is more than Rs 10 lacs and which otherwise satisfy all other eligibility criteria of the subsidy scheme, but subsidy amount will be calculated only up to loan amount of Rs 10 lacs. We would also like to clarify that the loan accounts, which were otherwise eligible for subsidy but could not be covered because of loan limit more than Rs 10 lacs, will now be eligible under the scheme and claim in respect of these

accounts may be submitted. REFERENCE CIRCULAR BCC/BR/102/222 13.08.2010 Education Loan Interest Subsidy Scheme BCC/BR/103/162 13.06.2011 Eligibility of subsidy beyond loan of Rs 10 lacs

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BARODA LOAN FOR CAREER DEVELOPMENT TARGET GROUP: v Individuals desirous of pursuing Higher Education in India or Abroad, but are

presently gainful employed. v Loan for pursuing vocational courses, trainings, pilot trainings, skill up

gradation trainings, diploma / degree courses offered in aviation, hospitability and travel management, executive development etc.

COURSES ELIGIBLE : v Graduate, Post Graduate, Diploma, Professional Courses, Specialization

courses offered by reputed Universities / Institutions (Indian or Overseas), having assured employment prospects.

v Skill up gradation courses offered by various institutes (Indian / Overseas) , having assured employment prospects.

v Courses offered by Hospitality Management Institutes for skill upgrade / short course / Training etc.

v Pilot Training courses offered by reputed Institutions (Indian or Overseas) approved by Director General of Civil Aviation (DGCA) / International Civil Aviation Organization (ICAO).

ELIGIBILITY: v Applicant should be a Resident Indian. v He / She should have secured admission to the course through Entrance Test

/ Merit based selection process. COVERAGE OF EXPENSES : v Tuition / Examination / Library fees etc charged by the Institute. v Hostel fees v Cost of books, equipments, instruments etc. v Personal Computers / Laptops, wherever required v Any other expenses required to complete the course viz. Study Tours,

Project works, thesis etc. QUANTUM OF FINANCE : v Need based finance, subject to repayment capacity of the applicant based

on expected income after course completion. v Maximum Loan :

Ø Courses within India : Rs 10.00 lacs Ø Courses Abroad : Rs 20.00 lacs

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MARGIN: v 15 % v Scholarship / Assistantship received if any, should not be included in

margin. REPAYMENT PERIOD: v Loan to be repaid in 60 EMIs v Repayment Holiday : Course period + 6 months or 3 months after getting a

job, which ever is earlier. PROCESSING & DOCUMENTATION CHARGES: v 0.50 % of loan amount SECURITY: v Advance to be secured by way of 100% tangible collateral security in the

form of mortgage of property, Assignment of securities like NSCs, KVPs, LIC Policies and Government Bonds etc.

v Assignment of Future income of the applicant v Personal Guarantee of Father / Mother of the applicant or any other person

having sufficient worth. DISBURSEMENT: v Directly to the Institute / University, as per schedule specified Fees already

paid may be reimbursed against original receipt, within one year only. SANCTIONING BRANCH: v Branch, which is in close proximity to the permanent place of residence of

the applicant / parents. OTHER CONDITION: v Periodical (Yearly / Half Yearly) progress report to be obtained and kept on

record. v Accrued interest during repayment holiday to be added to the principal and

EMI to be then calculated. v Penal interest @ 2 % p.a. on overdue amount and for non – compliance of

terms and conditions. REFERENCE CIRCULAR BCC/BR/99/358 06.12.2007 Baroda Career Development BCC/BR/101/93 28.03.2009 Realignment of existing Retail Asset Products and

Deviation Norms

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BARODA AUTO LOAN As we are aware that our Bank was having different products related to Auto Loan sector. These Loan Schemes vide Bank’s Circular no. BCC: BR: 101:93 dated 28.03.2009 have been realigned for operational convenience under the name “BARODA AUTO LOAN” as below: 1) Baroda Car Loan 2) Baroda Car Loan to HNIs / Corporates 3) Baroda Loan For Two Wheelers PURPOSE: v For purchase of any new four wheeler, Car, Jeep, Station Wagon etc. and

Two Wheeler for private use. v For purchase of second hand car / Two Wheeler (not more than 3 years old) TYPE OF FACILITY : Term Loan ELIGIBILITY: v Salaried Employees / Directors of private / Public Limited Companies,

Proprietors / Partners of Partnership firms and Government Employees / individuals, high salary earners / Businessmen / Professionals, farmers.

v Prior account relationship not essential. However, statement of account for last six months should be studied to satisfy that the conduct of the account is satisfactory.

v Minimum age – 21 years v Maximum age – Salaried: Present age + repayment period should not exceed

retirement age. Others: Present age + repayment period should not exceed 65 years.

v Minimum Employment – one year / stable business. LIMIT & MARGIN: v Limit : Ø New Vehicle : Rs 15.00 lacs, Ø For HNIs / Corporates : Rs 100 lacs ( No Minimum )

[HNIs means individuals with minimum monthly salary of Rs 1.25 lacs and carry home salary should be at least 40% ( inclusive of proposed deductions ) whereas Corporate means having minimum tangible net worth of at least 10 times of the loan requested shall be considered under the scheme.]

Ø Old Vehicle : Rs 10.00 lacs,

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Subject to § 24 times of gross monthly income for salaried persons § 3 times of gross annual income ( average ) for others

Ø For Two Wheeler : Rs 1.00 lac or 5 times of gross monthly income which ever is lower subject to repayment capacity.

v Margin :

Ø Loan up to Rs 15.00 lac - 15 % on Road Cost incl. Reg. & Ins. Ø Loan above Rs 15.00 lac - 20% on Road cost including Registration and Insurance. Ø Old Vehicle - 40% Ø Two Wheeler - 10% on invoice value

PROCESSING & DOCUMENTATION CHARGES: v Car Loans

Ø Up to Rs 15.00 lacs - 0.75 % Maximum Rs 10,000/- Ø Limit Over Rs 15.00 lacs - 0.50 % of loan amount with a minimum of Rs 10,000/- and No Maximum limit.

v Two Wheeler

Ø 2 % of Loan amount minimum Rs 250/- + ST REPAYMENT: v New Car – 84 EMIs v Second Hand Cars – 36 EMIs v Two Wheeler - 60 EMIs [12 Post dated cheques are to be obtained in advance every year with undertaking to maintain adequate balance] SECURITY: v Bank’s charge to be noted with RTO v Comprehensive Insurance of vehicle with Bank clause CONCESSION IN RATE OF INTEREST: v Concession of 0.50% in rate of interest will be provided to those who offer

minimum 50 % of liquid security e.g. NSC, KVP, LIC Policy or Fixed Deposit of our Bank as collateral.

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v Concession of 0.25% in interest rate on car loan is available to all our existing home loan borrowers having a good track record of repayment, without any overdue in a/c.

INSURANCE: v Comprehensive Insurance of the Vehicle with Bank’s Clause. In case of

second hand car, the existing insurance policy be got transferred to the name of the borrower with bank’s clause.

TAKE OVER OF LOAN ACCOUNT: v Request from the Principal borrower is required. ( No request for take over

of account for second hand car is to be entertained ) v The car should not be more than 3 years old on the date of take over of lo an

account. v Valuation certificate from approved garage is to be obtained, if car is more

than 2 years old. v It is to ensure that previous loan account is regular with the existing bank

and there is no overdue in the account. (Statement of A/C should be kept on record)

v To ensure that the other bank’s lien on the car in RTO records is cancelled and simultaneously our bank’s name is entered in the books of RTO as financer.

v Insurance policy, if in force, to be modified and our bank’s name to be replaced with the previous bank in the Bank Clause of the policy.

v Disbursement to be made directly to the bank by super scribing the purpose .

TIE UP ARRANGEMENT: v On 22.11.08 Bank has entered into a tie up arrangement with Maruti Suzuki

Ltd. v The local dealer will provide seating facility with light, Telephone line etc

to the representative of the Bank visiting the show room. v A charge may be paid to the dealer not exceeding 1 % of the amount of car

finance by the car financing branch to the debit of P/L Sundry Charges A/C. v Bank has entered into tie up arrangements with Hundai MOTORS / Tata

Motors / Mahindra & Mahindra to give a boost to Auto Loan. Portfolio. OTHER CONDITIONS: v Bankers Cheque / DD issued by the bank towards disbursement of car loan

should be super scribed “ Car Loan to Mr. / Mrs _________________ v In case of second hand cars, certificate of value and residual life of the car

to be obtained from a reputed / approved garage.

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v 12 post dated cheques to be obtained in advance every year, with undertaking to maintain adequate balance.

v Blank TTO form in duplicate to be obtained. v Concession of 0.50 % in rate of interest to those who offer minimum 50 %

liquid security e.g. NSC, KVP, FDR, LIC Policy etc. (excluding earmarking of PF balances) as collateral. Additionally a concession of 0.25% to existing Home Loan borrowers having a good track record of repayment.

v It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 3000/- per deviation with maximum of Rs

v 10,000/-. v In case the loan is granted to corporates, the vehicle should be used

exclusively by the Directors / Executives of the Company and also not registered as Commercial Vehicle.

v Maximum deductions including proposed EMI should not exceed 60% of income.

v The job of installation of CNG / LPG Gas Kit must be done in new / 2 nd hand car not more than 5 years old by the authorized dealer only.

v Bank has provided on line submission of loan application facility to the applicants w.e.f. 09th August, 2010 and the applicants so received are to be disposed off with 48 hours. URL for online application is – https://www.bankofbaroda.co.in/oala2010

POWER OF DEVIATION: v Powers of Financial Deviations which have a direct impact on Profit & Loss

A/C of Bank shall not be exercised below the level of BCC. However non financial deviations may be considered as per powers delegated.

CHECK LIST : 1. Application form duly filled and signed by prospective borrower 2. Two Passport size photograph 3. Quotation for Car from an authorized dealer 4. Photocopy of PAN Card 5. Personal Identification Proof: Ø Photo Identity Card issued by present employer Ø Electoral I – Card Ø Passport Ø PAN Card

6. Residential Address Proof: Ø Electricity Bill Ø Telephone Bill ( Land Line ) Ø Electoral I – Card Ø Passport

7. Latest Salary slips for the last 3 months with break up and duly attested by the employer and countersigned by the applicant 8. For Salaried Class: Income Tax Returns along with Form No 16 for last two years

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9. For Others: Income Tax Returns for last two years along with assessment orders 10. Bank A/C Statement for last 6 months and details of existing loan A/C, if any, REFERENCE CIRCULAR BCC/BR/98/264 20.09.2006 Master Circular – Baroda Car Loan BCC/BR/99/322 29.10.2007 Revision of Interest – Car Loan BCC/BR/100/333 29.11.2008 Baroda Car Loan – Tie up with Maruti Suzuki Ltd. BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms BCC/BR/101/93 28.03.2009 Realignment of existing Retail Asset Products and Deviation

Norms BCC:BR:101:153 01.06.2009 Modification in Baroda Auto Loan BCC:BR:101:295 30.09.2009 Modification in Interest rate between Oct 1 , 2009 till Oct 31,

2009 BCC:BR:102:212 05.08.2010 Online Loan Application BCC:BR:102:238 01.09.2010 Revision in Interest Rates – linking with tenor

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BARODA PERSONAL LOAN As we are aware that our Product “Baroda Personal Loan” is a clean advance from security angle. Few other products viz. Baroda Vaibhav Laxmi, Loan to Pensioners, Loan to Defence Pensioner, Loan against Earnest Money Deposit , Loan for Consumer Durables and Loan for Laptop / PCs and Baroda Desh Videsh Yatra Scheme are almost of same nature with little difference. These Loan Schemes vide Bank’s Circular no. BCC: BR: 101:93 dated 28.03.2009 have been realigned for operational convenience under the name “BARODA PERSONAL LOAN” as below: 1) Baroda Personal Loan 2) Baroda Vaibhav Laxmi 3) Baroda Loan to Pensioners 4) Baroda Loan to Defence Pensioners 5) Baroda Loan for Earnest Money Deposit 6) Baroda Loan for Consumer Durables 7) Baroda Loan for Laptop and PCs 8) Baroda Desh Videsh Yatra Loan ( since withdrawn w.e.f. 01.04.09 ) For the convenience of the readers the salient features of the scheme as mentioned above are detailed as under: PURPOSE: v To meet personal expenses / exigencies related to medical, education,

marriage, honeymoon, family / social functions, travel, payment of taxes or any other family needs etc.

v Any purpose other than speculative. ELIGIBILITY: v Professional, self employed persons, Employees of corporate, Educational

Institution, Doctors, Architects, Interior Designers, Engineers, Chartered Accountants, Technical & Management consultants & Practicing Company Secretaries with 1 year stable business.

v Proprietorship (Proprietors), Partnership Firms (Partners), Existing staff members, Ex-Staff including VRS optees & Non residents are not eligible under the scheme.

v Permanent employees with minimum 1 year service of Central / State Government / Autonomous Bodies / Public / Joint Sector Undertakings, Reputed Limited Companies / MNCs & Educational Institutions. ( Employees of Proprietorship & Private Limited companies and businessmen are not covered under this scheme )

v Minimum – 21 years and Age + Repayment period of loan should not exceed retirement age for salaried class and 65 years for self employed.

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v Insurance Agents subject to

Ø The agent is doing insurance business minimum for last 5 years. Ø The agent has regular and stable income and maintaining SB account

with our Bank for crediting commission cheques received from the insurance co. with a letter from the agent addressed to the insurance co. to send the commission cheques directly to the Bank.

v Pension Loans are available to Pensioners only. v Loan for Earnest Money Deposit is available for Business persons also i.e.

proprietors, partners of Partnership firms or Directors of Pvt. Ltd. Co. in addition to above class of persons.

LIMIT: v Minimum – No Limit ( BCC : BR : 101 : 137 dated. 04.05.2009 ) v Maximum –

Ø Category ‘A’ & ‘B’ ( as per risk rating ) – Rs 2,00,000/- Ø Category ‘C’ ( as per risk rating ) - Rs 1,00,000/- Ø Category ‘D’ ( as per risk rating ) - No loan to be sanctioned

Subject to :

Ø 6 times of Gross monthly income for salaried individuals. Ø 75% of the last year’s taxable income for self -employed and

professionals. except the following : Ø Loan to Pensioner: 10 times of monthly pension maximum Rs 1.00

lac, whichever is lower. Ø Loan to Defence Pensioner: 20 times of monthly pension maximum

Rs 2.00 lacs, whichever is lower. Ø Loan for Consumer Durables: 5 times of gross monthly income

maximum Rs 1.00 lac, whichever is lower. Ø Loan for Laptop / PC: 5 times of gross monthly income max. Rs 1.00

lac, whichever is lower. Ø Loan for Earnest Money Deposit: 8 times of gross monthly income or

90% of application money or maximum Rs 5.00 lacs, whichever is lower.

PROCESSING CHARGES: v 2 %, Minimum Rs 500/- & No Maximum + ST

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REPAYMENT: v Maximum 36 EMIs commencing one month after disbursement except :

Ø Loan to defence pensioners : 60 months Ø Loan to Consumer durables : 60 months Ø Loan for Laptop / PCs : 60 months Ø Loan for Earnest Money Deposits : by lump sum payment in 6 months

DOCUMENTATION: v D.P.Note / Letter of Installment with acceleration clause / Letter of

undertaking from borrower - employer / General Form of Guarantee / Hypothecation of Consumer Goods – Laptop purchased out of loan amount, if any / In case of Loan for Earnest Money Deposits – power of attorney to collect and adjust refund amount in loan and stamped undertaking to create EM after execution of sale deed.

SECURITY: v A copy of undertaking from employee ( for salaried persons ) authorizing the

employer to deduct from the salary monthly loan installment and remit the same to the bank for the credit of loan account and also to deduct from the terminal benefits, the outstanding loan amount with interest. A copy of the said undertaking duly acknowledged by the employer has to be kept on branch records.

v If the employer is not ready to acknowledge the undertaking given by the employee, branch should obtain 12 Post Dated Cheques from customer drawn on his account with prescribed undertaking.

v Third party guarantee, if possible. LENDING POWERS: v Where the assets are created out of Bank Loan and no tangible collateral

securities are available, DLPs of clean loans shall be exercised by the sanctioning authority.

POWER OF DEVIATION: v Powers of Financial Deviations which have a direct impact on Profit & Loss

A/C of Bank shall not be exercised below the level of BCC. However non financial deviations may be considered as per powers delegated.

OTHER CONDITIONS: v Prior account relationship not necessary. However, account statement for

last 6 months (account either with our bank or with other bank) to be

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studied to satisfy that the conduct of account is satisfactory and a note should be made in the proposal.

v Interest rate prevailing on the date of disbursement of the term loan will be the applicable rate during currency of the loan and will not undergo any change in BPLR from time to time.

v Penal interest @ 2 % p.a. for non payment / delayed payment on overdue amount.

v In case the borrower is transferred and our bank has a branch at the place where the borrower is transferred, the outstanding loan amount may be transferred to that branch as per the bank’s extant guidelines for transfer of accounts.

v It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-.

v Before sanction of loan for Earnest Money Deposit, branch to ensure that proposed borrower is eligible for financing the Housing Loan project under the Home Loan guidelines for which he is bidding and is also agreeable to avail Housing loan from us.

v Total deductions should not exceed 60% of gross salary per month except in case of loan for Earnest Money Deposit where home loan guidelines shall apply.

v Credit rating shall be carried out as per extant guidelines and decisions will be taken accordingly.

REFERENCE CIRCULAR BCC/BR/96/200 20.05.2004 Baroda Personal Loan BCC/BR/97/303 02.11.2005 Baroda Personal Loan – Insurance Agent Now Eligible BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms BCC/BR/101/93 28.03.2009 Realignment of existing Retail Asset Products and Deviation

Norms BCC/BR/101/137 04.05.2009 Realignment of existing Retail Asset Products and Deviation

norms - Clarification

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BARODA ADVANCE AGAINST GOLD ORNAMENTS / JEWELLERY PURPOSE : v Any purpose other than speculation Types of faculty : v Term Loan ELIGIBILITY: v All Individual staff and ex – staff members being the true owner of the Gold

Ornaments / Jewellary. (Documents of ownership of Gold Ornaments / Jewellary to be obtained verified by and satisfied upon by the sanctioning authority and kept on record).

v No third party loan to be granted i.e. loan to be granted to immediate owner only.

LIMIT: v Minimum : Rs 0.25 lac v Maximum : Rs 10.00 lac MARGIN: v 25% on value of Gold Ornaments / Jewellary, carried out by Bank’s approved

valuer. v Based on average value of the 22 carat Gold during last six months at Rs

1800 per gram, The advance value has been fixed at Rs 1350/ per gram for 22 carat purity (keeping 25 % Margin) with a provision for reduction in valuation by Rs 62 /- per gram for every carat reduction

PERIOD : v Maximum 36 months v Repayment may be fixed Monthly / Quarterly / Half Yearly / Yearly

installments or bullet repayments as per the repayment capacity of the borrower with the proviso that interest as and when charged is required to be serviced.

v In case the interest is not serviced for three months, bank shall have right to sell the securities pledged to it and liquidate the account by appropriation of sale proceeds of securities after giving due notice to the borrower.

SECURITY: v The loan shall be secured by way of pledge of minimum 22 carat / Hallmark

Gold Jewellary.

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v Gold Ornaments containing Gems and stones will not be accepted as security.

VALUATION OF GOLD : v Gold ornaments / Jewellary shall be valued by Bank’s approved gold valuer

/ assayer in the branch premises in presence of Branch Manager / Officer and the borrower concerned and a certificate of valuation along with complete details of quality and quantity of securities of Gold Ornaments / Jewellary shall be kept on record.

v As there is often fluctuation in gold prices, branch is required to keep track on gold prices and update the valuation of securities as per quality of ornaments and prevailing market prices in the month of every February and August and ensure that margin of 25% on the value of ornaments / Jewellary is maintained. If there are any adverse movements in prices the borrower will be required to deposit the margin gap to maintain 25% margin.

INSURANCE : v Securities of gold charged to the Bank to be insured adequately at the cost

of the borrower. PROCESSING & DOCUMENTATION : v 0.50% + Service Tax of loan amount consolidated. OTHER CONDITIONS : v KYC Norms to be strictly complied with. v In case of salaried class total deductions (including proposed installment)

not to exceed 60% of gross income. v Assayer may be paid commission of Rs 250/- per lac or part thereof, on net

assayed value of gold ornaments with a minimum of Rs 250/- and a maximum of Rs 1500/- per assaying. The amount may be recovered from the borrower by obtaining an undertaking from the borrower for making direct payment to assayer.

v Bank should have enlarged panel of assayers and to be utilized on rotation. v The weighing balance must be certified by the Department of Weight &

Measures once in a year. v Pledge of Jewellery from pawn brokers is prohibited. v Register of Insurance of Jewellery to be properly maintained. v Jewellery packet movements register to be maintained. REFERENCE CIRCULAR : BCC/BR/102/264 24.09.2010 Launch of Baroda Advance Against Gold Ornaments /

Jewellery BCC:BR:103/46 10.02.2011 Fixing of Loan Amount against per gram of Gold

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LOAN AGAINST THE SECURITY OF GOLD ORNAMENTS JEWELLERY

PURPOSE : v Working Capital Requirement and / or purchase of equipments for

development of shop e.g. Computer, Furniture etc. Types of faculty : v Loan / Overdraft ELIGIBILITY: v All Individual including ex – staff members ( but existing staff members are

not eligible ), Joint borrowers ( closely related), and proprietorship / partnership firms engaged in trading and having license, wherever required, for the same from competent authority.

v Other conditions applicable in Baroda Traders Loan shall apply. v 20% of the projected annual turnover or 75% of the market value of the gold

ornaments assessed by Bank’s approved valuer, offered as security. LIMIT : v Minimum : Rs 0.50 lac v Maximum : Rs 2.00 lac MARGIN : v 25% on the present market value of Gold Ornaments / Jewellary assessed by

the Bank’s approved assayer, Ornaments containing gems and stones will not be considered as security for the purpose.

v Based on average value of the 22 carat Gold during last six months at Rs 1800 per gram, The advance value has been fixed at Rs 1350/ per gram for 22 carat purity (keeping 25 % Margin) with a provision for reduction in valuation by Rs 62 /- per gram for every carat reduction

PERIOD : v Loan : Maximum 60 months v Overdrafts : for 12 months subject to annual review. UNIFIED PROCESSING CHARGES : v 0.50% of loan limit minimum Rs 250/- + service tax.

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OTHER CONDITIONS : v Method of assessing the market value and safe keeping the ornaments will

be the same as in the case of “ Baroda Advance against Gold Jewellery / Ornaments”

v In case the account turns NPA, method of recovery of Bank’s dues will be the same as in the case of “Baroda Advance against Gold Jewellery / Ornaments.”

v Assayers charges have to be borne by the borrower and charges will be same as in the case of “ Baroda Advance against Gold Jewellery / Ornaments”

v KYC Norms to be strictly complied with. v As the gold is highly price sensitive, branch to ascertain the value of

ornaments on quarterly basis and ensure that necessary margin is maintained. If required, limits may be reduced to maintain the margin and borrower may be advised to restrict his drawings up to revised limits.

v Assayer may be paid commission of Rs 250/- per lac or part thereof, on net assayed value of gold ornaments with a minimum of Rs 250/- and a maximum of Rs 1500/- per assaying. The amount may be recovered from the borrower by obtaining an undertaking from the borrower for making direct payment to assayer.

v Bank should have enlarged panel of assayers and to be utilized on rotation. v The weighing balance must be certified by the Department of Weight &

Measures once in a year. v Pledge of Jewellery from pawn brokers is prohibited. v Register of Insurance of Jewellery to be properly maintained. v Jewellery packet movement registers to be maintained. REFERENCE CIRCULAR : BCC/BR/102/264 24.09.2010 Launch of Baroda Advance Against Gold Ornaments /

Jewellery BCC:BR:103/46 10.02.2011 Fixing of Loan Amount against per gram of Gold

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BARODA LOAN TO DOCTORS PURPOSE: v Development of clinic / clinic-cum-residence / Nursing Home / Pathological

Laboratory v Purchase of medical / diagnostic equipments v Setting up of Operation theatre. v Purchase of car & ambulance etc. v Purchase of office equipments viz. Computers, fax, air-conditioners and

furniture etc. v Expansion / renovation / modernization of existing premises / clinic /

Nursing Home. v Working Capital requirement including stock of medicines. ELIGIBILITY: v Individuals, Proprietorship, Partnership firms, Private Ltd. Cos. engaged in

providing medical science like MBBS, BAMS, BDS or any degree / course in physiotherapy / radiology etc.

v In case of Pvt. Ltd. Co. the object clause should be verified for having the objective of providing medical services to community.

LIMIT: v Minimum – Rs 50,000/- v Maximum –

Ø Rural & Semi Urban - Rs 15 lacs (sub limit for W/C Rs 1 lac) Ø Urban / Metro - Rs 50 lacs (sub limit for W/C Rs 3 lacs)

v For a loan of Rs 5 lacs & above – unit should be having 3 years establishment MARGIN: v Loan up to Rs 5 lacs ( where no collateral is stipulated ) - 25 % v All other cases - 15 % v Working Capital - NIL PROCESSING CHARGES: v 0.35 % of loan amount – Maximum Rs 15,000/- + ST REPAYMENT: v Overdraft ( For Working Capital ) – 12 months subject to annual review

(For renewal of A/C, declaration of annual income shall be obtained and kept on record. Stock statement to be obtained once in a year – last of February every year)

v Demand Loan / Term Loan – Maximum 60 EMIs with 6 month moratorium.

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(DSCR of 1.25 may be accepted to ensure repayment capacity)

SECURITY:

v Up to Rs 5.00 lacs - NIL v Above Rs 5.00 lacs :

Ø Tangible collateral securities in the form of mortgage of land Ø ( excluding agriculture land ) and building Ø Pledge of NSCs, Govt. Bonds, Bank’s FDR, and Assignment of Life

insurance policies etc. Ø Securities to be obtained may be in the personal name of borrower,

proprietor, partner, director or their close relatives (viz. spouse, parents, brother, sister, son, daughter) who should stand as guarantor / co -borrower.

SECURITY MARGIN: v Immovable Property – 40 % v NSC / KVP / Govt. Bonds / Ins. Policy - 15 % v Bank’s FDR - 10 % DOCUMENTATION CHARGES: v Up to Rs 50,000/- - NIL v Above Rs 50,000/- up to Rs 2 lacs - Rs 100/- v Above Rs 2 lacs up to Rs 5 lacs - Rs 350/- v Above Rs 5 lacs up to Rs 20 lacs - Rs 1,000/- v Above Rs 20 lacs up to Rs 25 lacs - Rs 1500/- v Above Rs 25 lacs - Rs 3000/- OTHER CONDITIONS: v Borrower to route entire income through their OD account. v No additional facility to be sanctioned if enjoying facility under “Loan to

Professional & Self Employed Persons”. v Inspection of securities – once in a year v Vehicle / property mortgaged should be got insured. v Request of Doctors for Car & Personal Loan may be considered subject to

that total deduction should not exceed 70 % of total income. v It has been decided by our Bank to levy the charges for deviations (financial

/ non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-. REFERENCE CIRCULAR BCC/BR/97/251 27.09.2005 Master Circular – Baroda Loan to Doctors BCC/BR/98/42 20.02.2006 Security Margin Norms BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms

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BARODA LOAN AGAINST SECURITIES

Loan against NSC PURPOSE: v For Productive purpose v For meeting the contingency needs of personal nature. ELIGIBILITY: v Must be a Indian resident v Age - 21 years and above LIMIT: v Minimum Amount :

Ø Demand Loan – Rs 3,000/- Ø Overdraft - Rs 20,000/-

v Maximum Amount : Ø For Public - No ceiling Ø For Staff - 5 times of gross salary

MARGIN: v Public :

Ø 15 % of face value of NSC, if residual maturity period is less than 3 years.

Ø 20 % of face value of NSC, if residual maturity period is 3 years and above.

v Staff : Ø 10 % of face value

PROCESSING CHARGES: v Rs 100/- flat + out of pocket expenses and actual conveyance charges +

service tax REPAYMENT PERIOD: v Loan :

Ø Option I – Repayment in maximum 35 EMIs or within the maturity period, whichever is less.

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Ø Option II – Repayment of principal with interest, at the time of maturity out of proceeds of the instrument subject to a provision that in such cases the margin would be minimum 20 %.

v Overdraft :

Ø Till maturity of the security. In case of overdraft, if the credit turnover in the account in the preceding month is not adequate to cover the interest debited, and then interest debited in the account is to be recovered separately.

SECURITY: v Pledge of duly discharged NSCs / KVPs v Lien on NSCs to be noted with the issuing Post Offices. OTHER CONDITIONS:

v NSCs of only 8th series are in vogue (since 8.5.1989). v Memorandum for granting / recommending advance against Certificates

should be prepared in the prescribed format v Advance to third party is not permitted v Advance should be disbursed only after getting the Bank’s lien noted. v A representative of the bank to be sent to Post Office for this purpose and

the borrower must not be entrusted for this purpose in any circumstances. v While fixing rate of interest weighted average method is to be applied in

case of consolidated limit to one borrower against securities where interest rates are different

v It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-.

REFERENCE CIRCULARS BCC/BR/100/223 11.08.2008 Master Circular – Baroda Loan Against Securities BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms

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LOAN AGAINST KVP PURPOSE: v For Productive purpose v For meeting the contingency needs of personal nature. ELIGIBILITY: v Must be a Indian resident v Age - 21 years and above LIMIT: v Minimum Amount :

Ø Demand Loan – Rs 3,000/- Ø Overdraft - Rs 20,000/-

v Maximum Amount : Up to Rs 1.00 lac by Branch Head & Above Rs 1.00 lac by Regional Head.

MARGIN: v Public :

Ø 15 % of face value of NSC, if residual maturity period is less than 3 years.

Ø 20 % of face value of NSC, if residual maturity period is 3 years and above.

PROCESSING CHARGES: v Rs 100/- flat + out of pocket expenses and actual conveyance charges +

service tax REPAYMENT PERIOD: v Loan :

Ø Option I – Repayment in maximum 35 EMIs or within the maturity period, whichever is less.

Ø Option II – Repayment of principal with interest, at the time of maturity out of proceeds of the instrument subject to a provision that in such cases the margin would be minimum 20 %.

v Overdraft :

Ø Till maturity of the security. In case of overdraft, if the credit turnover in the account in the preceding month is not adequate to cover the interest debited, and then interest debited in the account is to be recovered separately.

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SECURITY: v Pledge of duly discharged NSCs / KVPs v Lien on NSCs to be noted with the issuing Post Offices. OTHER CONDITIONS:

v Memorandum for granting / recommending advance against Certificates should be prepared in the prescribed format.

v Advance to third party is not permitted v Advance should be disbursed only after getting the Bank’s lien noted. v A representative of the bank to be sent to Post Office for this purpose and

the borrower must not be entrusted for this purpose in any circumstances. v While fixing rate of interest weighted average method is to be applied in

case of consolidated limit to one borrower against securities where interest rates are different.

v It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-.

REFERENCE CIRCULARS BCC/BR/100/223 11.08.2008 Master Circular – Baroda Loan Against Securities BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms

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LOAN AGAINST LIFE INSURANCE POLICIES PURPOSE: v For Productive purpose v For meeting the contingency needs of personal nature. ELIGIBILITY: v Must be a Indian resident v Age - 21 years and above LIMIT: v Minimum Amount :

Ø Demand Loan – Rs 3,000/- Ø Overdraft - Rs 20,000/-

v Maximum Amount : No ceiling MARGIN: v 15 % of surrender value, if the insurance policy is maturing within a period

of less than 3 years. v 20 % of surrender value, if the residual maturity period is 3 years and above. PROCESSING CHARGES: v Rs 100/- flat + out of pocket expenses and actual conveyance charges +

service tax REPAYMENT PERIOD: v LOAN : Repayment in maximum of 60 EMIs or within the maturity

period whichever is less subject to availability of stipulated margin. v OVERDRAFT : Till maturity of the security. In case of overdraft, if the

credit turnover in the account in the preceding month is not adequate to cover the interest debited, then interest debited in the account is to be recovered separately

SECURITY: v Assignment of Life Insurance Policy, in force for more than 3 years, in

Bank’s favour. v Standing instructions from the borrower to pay the premium on the policy,

as and when they fall due to the debit of his savings bank / current / overdraft A/C.

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v The branch to obtain last premium paid receipt and keep on record. v Policies which restrict its assignment should not be accepted. OTHER CONDITIONS: v Facility may be sanctioned by the sanctioning authority up to fund based

lending powers for sanctioning advances against pledge of Govt. securities on merits, taking into account the purpose of advance and repayment capacity of the borrower.

v Life Insurance Policies issued by private insurance companies can also be accepted as security for considering advances under this scheme.

v Advance to third party is not permitted. v Policies which are not to be accepted for advance :

Ø Whole Life Policies. Ø Policies issued under Married Women’s Property Act, 1874, wherein

nomination will be automatically cancelled by a subsequent transfer or assignment.

Ø Policies assigned to a minor. v It has been decided by our Bank to levy the charges for deviations (financial

/ non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-. REFERENCE CIRCULARS BCC/BR/95/208 Private Co. Policies BCC/BR/100/223 11.08.2008 Master Circular – Baroda Loan Against Securities BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms

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LOAN AGAINST RELIEF / GOVT. BONDS PURPOSE: v For Productive purpose v For meeting the contingency needs of personal nature excluding speculative

purpose. ELIGIBILITY: v Must be a Indian resident v Age - 21 years and above LIMIT: v Minimum Amount :

Ø Demand Loan – Rs 3,000/- Ø Overdraft - Rs 20,000/-

v Maximum Amount : No ceiling MARGIN: v 15 % of face value, if residual maturity period of Bond is less than 3 years. v 20 % of face value, if the residual maturity period of Bond is 3 years and

above. PROCESSING CHARGES: v Rs 100/- flat + out of pocket expenses and actual conveyance charges +

service tax REPAYMENT PERIOD: v Loan :

Ø Option I – Repayment in maximum 35 EMIs or within the maturity period, whichever is less.

Ø Option II – Repayment of principal with interest, at the time of maturity out of proceeds of the instrument subject to a provision that in such cases the margin would be minimum 20%.

v Overdraft :

Ø Till maturity of the security. In case of overdraft, if the credit turnover in the account in the preceding month is not adequate to

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cover the interest debited, and then interest debited in the account is to be recovered separately.

SECURITY: v Pledge of relief bond. v Blank transfer deed. v Notice to the Public Debt Office of RBI / Designated bank who issues Bonds. OTHER CONDITIONS: v Facility may be sanctioned by the sanctioning authority up to fund based

lending powers for sanctioning advances against pledge of Govt. securities on merits, taking into account the purpose of advance and repayment capacity of the borrower.

v Advance to third party is not permitted. v Advances should be made against Bonds which are eligible for bank finances,

such as 6.5% RBI Bond 2003, 7% savings Bond 2002 etc. v It has been decided by our Bank to levy the charges for deviations (financial

/ non financial) @ ` 3000/- per deviation with maximum of ̀ 10,000/-. REFEREENCE CIRCULARS BCC/BR/100/223 11.08.2008 Master Circular – Baroda Loan Against Securities BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms

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LOAN AGAINST FUTURE RENT RECEIVABLES – UNDER COMMERCIAL REAL ESTATE (CRE)

PURPOSE: v General Business / Personal Needs

(Except for speculative or any other activity restricted by RBI / Govt.) ELIGIBILITY: v Owners who have let out or propose to let out their premises Wherein Bank

has considered loan also against uncertain period of lease to reputed companies / MNCs / Banks / Multinationals / Public Sector Undertakings / Established Commercial Organizations , Institutions / Govt., Quasi Govt. Departments etc.

v Land lords of Bank of Baroda branch / office premises / residential flats, houses leased out to Bank of Baroda. Note: Exposure must be under commercial real estate segment as per extant guidelines of RBI / our Bank from time to time.

LIMIT & MARGIN: v 55 % of rent ( net of TDS, advance rent, security deposit ) due and

receivables, for the unexpired certain period of lease and uncertain period of lease ( optional period ) subject to : § Minimum amount of Loan : Rs 25 Lac § For Landlord of Bank of Baroda Premises : No minimum limit § Maximum exposure for Single Borrower : Rs 200 crores § Maximum exposure for Group Borrower : Rs 250 crores § Maximum eligible limit to be fixed considering the unexpired certain

lease period and uncertain period of lease (Total option & certain period of maximum 10 years).

§ For the period of computation of quantum of rent receivables, the option period to be taken into consideration should not exceed 1/3rd of the certain period.

REPAYMENT: v Loan to be repaid in Equated Monthly Installments (EMI) with a maximum

period of 10 years or unexpired certain period of lease and optional period of maximum next 10 years, whichever is less. The maximum rental period (including the certain and optional period) should be 10 years.

Note :

1. Cash flow generation of the borrower is to be kept in mind, while proposing repayment schedule.

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2. Ballooning / Accelerated repayment, if there is increase in lease rental during the tenor of loan.

SECURITY: v For Loans up to Rs 5.00 lacs – Assignment of future rent receivables and

third party guarantee acceptable to the Bank. Such loans should be classified as ‘UNSECURED’ and sanction should be as per discretionary lending powers for unsecured advances.

v For Loans above Rs 5.00 Lacs –

Ø In addition to the assignment of future rent receivables, mortgage of the leased properties plus any other acceptable security, value of which should be at least 1.25 times of the loan amount. [The valuation should be as per the current market price of the property, which is to be mortgaged, as assessed by a certified valuer].

Ø Tripartite agreement amongst the Bank, the borrower and the tenant / lessee provid ing for payment of the rent directly to the Bank. Note : In normal circumstances, mortgage of lease hold property ( whose future rent is assigned ) will be taken as security.

Ø Authority for allowing deviations : if for exceptional reasons mortgage of leasehold property (whose future rent is assigned) is not available as security, other acceptable security may be taken with the approval of next higher authority, the value of which should be at least 1.25 time of the loan amount. Authority for allowing deviation ; Wherever Tripartite agreement is not feasible such as in the case of Government Department / Public Sector Units / Multinational Companies suitable letter from borrower for collecting rent directly to be obtained and lodged with lessee and undertaking from the lessee to pay such rent direct to Bank should be obtained.

LEASE AGREEMENT : v Loan should be given only when properties are leased under registered lease

deeds. (Registration of lease deeds is compulsory) v In case rent agreement is on ‘leave and license’ basis, the agreement should

be vetted by Zonal Legal Cell and their suggestions, if any, to be incorporated in the final “leave and license” agreement to be executed and registered.

PROCESSING FEE (INCL. DOCUMENTATION FEE) : v Upto Rs 10 Crores : 0.50% of loan amount subject to Maximum of Rs 5

Lacs. v Above Rs 10 Crores : 0.50% of loan amount subject to maximum of Rs 50

Lacs.

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v The above charges are to be levied once only at the time of sanction and are exclusive of service tax.

v No processing charges for review of facility unless there is change in terms of original sanction.

v Actual stamp charges, valuation charges of Immovable property, insurance premium & legal opinion fee will be borne by the borrower and has to be recovered by the branches upfront.

UPFRONT FEE : v 0.50% of the loan amount subject to maximum of Rs 50 Lacs at the time of

initial sanction. OTHER CONDITIONS: v Certified copies of Lease Deed, Rent Agreement under “Leave and License”

Scheme, Tripartite agreement, Letter of authority and undertaking from tenant / lessee to collect rent directly by the Bank are to be got vetted by the Legal Department / Bank’s Legal Advisor beside scrutiny of title to property for 30 years by Bank’s Legal advisor to be obtained .

v Zonal Authorities are empowered to relax rate of interest up to BPLR for the proposal falling up to their powers.

v Insurance for full market value of the property to be mortgaged with Bank Clause

v Takeover norms given in Domestic Loan Policy are not applicable for takeover of loan A/Cs of other Banks for this scheme. However following norms should be should be strictly adhered : Ø Accounts with existing lenders should be under the category of

“Standard Assets” Ø Satisfactory report from the existing Bank / FI and / or satisfactory

conduct of account as per latest statement of account. Ø There should not have been any reschedulement / restructuring in

the account during last two years. Ø Credit rating is to be carried out as per the extant guidelines of the

Bank. Ø Activity clearance is required and Zonal Head is authorized up to

their DLP and likewise GM (Corporate) / ED/CMD for all other cases within their DLPs.

Ø Minimum FACR should be 1.25 times.

REFERENCE CIRCULAR BCC/BR/102/143 24.05.2010 Master Circular

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LOAN AGAINST FUTURE RENT RECEIVABLES – UNDER NON COMMERCIAL REAL ESTATE (NON - CRE)

PURPOSE: v General Business / Personal Needs

(Except for speculative or any other activity restricted by RBI / Govt.) ELIGIBILITY: v Owners who have let out or propose to let out their premises to reputed

companies / MNCs / Banks / Multinationals / Public Sector Undertakings / Established Commercial Organizations , Institutions / Govt., Quasi Govt. Departments etc.

v Land lords of Bank of Baroda branch / office premises / residential flats, houses leased out to Bank of Baroda. Note: Exposure must not be under commercial real estate segment as per extant guidelines of RBI / our Bank from time to time.

LIMIT & MARGIN: v 60 % of rent ( net of TDS, advance rent, security deposit ) due and

receivables, for the unexpired certain period of lease and uncertain period of lease ( optional period ) subject to : § Minimum amount of Loan : Rs 25 Lac § For Landlord of Bank of Baroda Premises : No minimum limit § Maximum exposure for Single Borrower : Rs 200 crores § Maximum exposure for Group Borrower : Rs 500 crores § Maximum eligible limit to be fixed considering the unexpired certain

lease period of next 10 years. REPAYMENT: v Loan to be repaid in Equated Monthly Installments (EMI) with a maximum

period of 10 years or unexpired certain period of lease, whichever is less. Note :

1. Cash flow generation of the borrower is to be kept in mind, while proposing repayment schedule 2. Ballooning / Accelerated repayment, if there is increase in lease rental during the tenor of loan. SECURITY: v For Loans up to Rs 5.00 lacs – Assignment of future rent receivables and

third party guarantee acceptable to the Bank. Such loans should be

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classified as ‘UNSECURED’ and sanction should be as per discretionary lending powers for unsecured advances.

v For Loans above Rs 5.00 Lacs –

Ø In addition to the assignment of future rent receivables, mortgage of the leased properties plus any other acceptable security, value of which should be at least 1.15 times of the loan amount. [The valuation should be as per the current market price of the property, which is to be mortgaged, as assessed by a certified valuer].

Ø Tripartite agreement amongst the Bank, the borrower and the tenant / lessee providing for payment of the rent directly to the Bank. Note: In normal circumstances, mortgage of lease hold property (whose future rent is assigned) will be taken as security.

Ø Authority for allowing deviations : if for exceptional reasons mortgage of leasehold property (whose future rent is assigned) is not available as security, other acceptable security may be taken with the approval of next higher authority, the value of which should be at least 1.15 time of the loan amount. Authority for allowing deviation ; Wherever Tripartite agreement is not feasible such as in the case of Government Department / Public Sector Units / Multinational Companies suitable letter from borrower for collecting rent directly to be obtained and lodged with lessee and undertaking from the lessee to pay such rent direct to Bank should be obtained.

LEASE AGREEMENT : v Loan should be given only when properties are leased under registered lease

deeds. (Registration of lease deeds is compulsory) v In case rent agreement is on ‘leave and license’ basis, the agreement should

be vetted by Zonal Legal Cell and their suggestions, if any, to be incorporated in the final “leave and license” agreement to be executed and registered.

PROCESSING FEE (INCL. DOCUMENTATION FEE) : v Upto Rs 10 Crores : 0.10% of loan amount subject to Maximum of Rs 1

Lacs. v Above Rs 10 Crores : 0.10% of loan amount subject to maximum of Rs 20

Lacs. v The above charges are to be levied once only at the time of sanction and

are exclusive of service tax. v No processing charges for review of facility unless there is change in terms

of original sanction. v Actual stamp charges, valuation charges of Immovable property, insurance

premium & legal opinion fee will be borne by the borrower and has to be recovered by the branches upfront.

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UPFRONT FEE : v 0.50% of the loan amount subject to maximum of Rs 50 Lacs at the time of

initial sanction. OTHER CONDITIONS: v Certified copies of Lease Deed, Rent Agreement under “Leave and License”

Scheme, Tripartite agreement, Letter of authority and undertaking from tenant / lessee to collect rent directly by the Bank are to be got vetted by the Legal Department / Bank’s Legal Advisor beside scrutiny of title to property for 30 years by Bank’s Legal advisor to be obtained .

v Zonal Authorities are empowered to relax rate of interest up to BPLR for the proposal falling up to their powers.

v Insurance for full market value of the property to be mortgaged with Bank Clause

v Takeover norms given in Domestic Loan Policy are not applicable for takeover of loan A/Cs of other Banks for this scheme. However following norms should be should be strictly adhered : Ø Accounts with existing lenders should be under the category of

“Standard Assets” Ø Satisfactory report from the existing Bank / FI and / or satisfactory

conduct of account as per latest statement of account. Ø There should not have been any reschedulement / restructuring in

the account during last two years. v Credit rating is to be carried out as per the extant guidelines of the Bank. v No activity clearance is required v Minimum FACR should be 1.15 times.

REFERENCE CIRCULAR BCC/BR/102/143 24.05.2010 Master Circular

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BARODA SALARY ADVANTAGE SAVINGS ACCOUNT PURPOSE: v To meet out the emergent short term family needs as Overdraft (clean /

unsecured) facility. ELIGIBILITY: v Salaried persons having minimum one year service. v Employees of Private Ltd. Cos. may also be considered by Regional Heads. v Minimum Age – 21 years v Minimum salary account relationship – 3 months v Staff members are not allowed LIMIT: v 90 % of net salary of average of last 3 months subject to Rs 1 lac. MARGIN: v NIL PROCESSING CHARGES: v 0.50 % , Minimum Rs 100/- REPAYMENT: v The account is to be brought into credit once in 60 days. SECURITY: v Third party Guarantee shall be obtained. v Cross Guarantee may be accepted. OTHER CONDITIONS: v Employee’s Certificate. v Conduct of the A/C should be satisfactory, regular credit of salary. v To keep a track on salary credit in the A/C after disbursement. v Employee should not be under suspension. v Payment of interest as per SB on credit balance. REFERENCE CIRCULARS BCC/BR/98/182 10.07.2006 Baroda Salary Advantage Savings Account

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EFFECTIVE RATE OF INTEREST ON VARIOUS RETAIL LOANS w.e.f. 01. 08. 2011 ( Base Rate w.e.f. 01 .08. 2011 – 10.75 % )

* ROI AS PER ANNEXURE TO CIRCULAR NO. – BCC: BR: 103/223 dated 30.07.2011

SN Product / Period of Loan Effective rate of interest per annum with monthly rests BARODA HOME LOAN TO INDIVIDUALS / NRIs / PIOs

Up to Rs 30 Lacs > Rs 30 Lacs and < ` 75 Lacs

Rs 75 Lacs & above ( Eff frm 1.12.2010)

Fixed Rate Option Not Available Not Available Not Available Floating Rate Option • Up to 5 years Base Rate + 0.50% i.e.

11.25 % Base Rate + 1.25% i.e.

12.00 % Base Rate + 1.5%

i.e. 12.25 % • Over 5 yrs & up to 15 yrs Base Rate + 0.75% i.e.

11.50 % Base Rate + 1.50% i.e.

12.25 % Base Rate + 1.75%

i.e12.50 % • Over 15 yrs & up to 25 yrs Base Rate + 1.00% i.e.

11.75 % Base Rate + 1.75% i.e.

12.50 % Base Rate + 2.00%

i.e. 12.75 % BARODA HOME IMPROVEMENT LOAN Base Rate + 2.50% i.e13.25 % BARODA ADDITIONAL ASSURED ADVANCE

( Resident / NRIs / PIOs ) Base Rate + 6.50% i.e17.25 %

2. BARODA MORTGAGE LOAN Base Rate + 5.25% i.e. 16.00 %

BARODA ASHRAY ( REVERSE MORTGAGE ) Fixed Rate Option Not Available

3.

Floating Rate Option Base Rate + 1.75% i.e. 12.50 % 4. BARODA TRADERS LOAN : Irrespective of loan

limit / OD / TL Against security of Gold ornaments / Jewellery

Base Rate + 4.00% i.e. 14.75 % Base Rate + 4.00% i.e14.75 %

BARODA LOAN TO DOCTORS Upto Rs .2.00 lacs

Base Rate + 3.% i.e. 13.75 %

5.

Above Rs . 2.00 lacs Base Rate + 2.5% i.e. 13.25 %

BARODA EDUCATION LOAN • Up to Rs . 4 lacs Base Rate + 2.00% i.e. 12.75 % • Above Rs . 4 lacs Base Rate + 4.00% i.e. 14.75 %

6.

§ BARODA CAREER DEVELOPMENT Base Rate + 4.75% i.e15.50 % 7. BARODA AUTO LOAN BARODA CAR LOAN / BARODA CAR LOAN TO

HNI s / CORPORATE Repayment period up to 5 years

Base Rate + 2.50% i.e. 13.25 %

Repayment period > 5 years Base Rate + 3.00% i.e13.75 %

BARODA LOAN FOR TWO WHEELERS Base Rate + 4.00% i.e. 14.75 % BARODA ADVANCE AGAINST SECURITIES Against NSC / KVP Loan :

Base Rate + 3.50% or 0.50% over NSC / KVP rate, whichever is higher

Overdraft : Base Rate + 4.00% or 0.75% over NSC / KVP, whichever is higher

Life Insurance Policy / Relief Bonds - Loan : Base Rate + 3.50% i.e. 14.25 %

Overdraft : Base Rate + 4.00% i.e. 14.75 %

8.

Advance Against Gold Ornament /Jewellery Base Rate + 4.00% i.e. 14.75 %

BARODA PERSONAL LOAN Base Rate + 6.50% i.e. 17.25 % 9. Except for the following purpose :

§ Loan to Pensioners § Loan to Defence Pensioners § Loan for Earnest Money Deposit

Base Rate + 5.25% i.e. 16.00 % Base Rate + 5.25% i.e. 16.00 % Base Rate + 3.25% i.e. 14.00 %

10. BARODA SALARY ADVANTAGE SAVINGS A/C Base Rate + 5.50% i.e. 16.25 % 11. LOAN AGAINST FUTURE RENT RECEIVABLES Base Rate + 6.00% i.e. 16.75 %

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REALIGNMENT OF DEVIATION NORMS

Eligibility criteria and other norms are clearly defined in the product profile of each retail asset but on few occasions due to stiff competition in the market, a need is felt by the sanctioning authorities to consider some deviations / concessions from existing norms, which may be financial or non financial deviations. Now it has been decided by the Bank (vide circular no. – BCC: BR: 101:93 dated 28.03.2009) to streamline the nature and authority for sanctioning deviations from time to time under various products. The deviations / concessions are classified under two major heads i.e. Financial Deviations and Non Financial Deviations. Financial Deviations : The deviations / concessions in rate of interest, waiver of processing charges etc. which has an impact on Profit & Loss account of the bank are considered as financial deviations. Powers for financial deviation were delegated to various functionaries but subsequently, the powers for financial deviations were withdrawn by Executive Director up to Zonal Level on 02.01.2007 vide communication no. BCC: ED: 98:37. Henceforth all financial deviations / concessions including concession in interest rate, processing / Documentation charges or any other concession involving financial impact on Bank’s Profit & Loss A/C shall be considered at Corporate level only. Non Financial Deviations : All other deviations such as exceeding maximum ceiling of Loan limit, eligibility criteria including exceeding maximum age of borrower, waiver of existing account relationship, considering two retail loans against the security of same property, exceeding maximum repayment period, margin norms, income criteria etc which do not give any direct impact on Profit & Loss A/C of the Bank are treated as non financial deviations. Presently, different authorities have been vested with the powers for non financial deviations as under:

Type of Deviation

Regional Head

Zonal Head up to the rank of Dy. GM

Zonal Head of the rank of GM

General Manager (Retail Banking)

Committee of General Managers

To exceed maximum ceiling of loan limit

Up to 50%

Up to 100%

Up to 100%

Up to 200%

Full Powers

Repayment period Exceeding 20 %

Exceeding 30 %

Exceeding 40 %

Exceeding 50 %

Full Powers

Margin Norms Housing Loans Ø Purchase of House / Flat Ø Purchase of Plot Ø Home Improvement

Car Loans Ø New Car Ø Second Hand

No powers have been delegated up to Zonal level for margin norms under other products

Not less than 10 % 15 % 15 % 10 % 30 %

Not less than 10 % 10 % 10 % 10 % 20 %

Not less than 10 % 10 % 10 % 10 % 20 %

Full Powers Full Powers Full Powers Full Powers Full Powers

Full Powers Full Powers Full Powers Full Powers Full Powers

To deviate from other terms & conditions i.e. eligibility criteria, waiver of existing account relationship.

Full powers

Full Powers Full Powers Full Powers Full Powers

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As the term “ Other Terms and Conditions “ have not been clearly defined in the above table, it creates confusion at the operating level and they remain confined to only eligibility criteria and existing account relationship. Proposals for all other deviations such as age relaxation, margin norms, income criteria, extending mortgage of property for more than two loans etc. which are of the nature of non financia l deviations are referred to BCC for their consideration. It has now been decided by the Bank to include all other non financial deviations such as relaxation in margin norms, maximum age criteria, income criteria, extending mortgage of property for more than two retail loans or any such deviations which do not have any impact on Profit & Loss A/C of Bank and are classified as Non Financial Deviations under the term “Other Terms and Conditions” referred in the above table and to be considered by Regional Managers or Zonal Heads as per their delegated powers. It should be kept in mind that Bank has introduced charges for deviations vide circular no. BCC: BR: 101:52 dated 14.02.09 and it should be carefully noted that no power is delegated at Zonal / Regional / Branch level for allowing deviation / concessions to waive deviation charges.

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PREVENTIVE VIGILANCE IN RETAIL LOANS

Bank expects robust growth in Retail loan segment. However, the robust growth should not be at the cost of quality. All set norms should be strictly complied with, without negligence while processing retail proposals. Growing NPA is the biggest threat to our profitability and a fraud is one area of concern where there is total loss in most of the cases. For the purpose bank has issued certain guidelines, appended as below, to be followed in retail lending for prevention of frauds. General Guidelines for all Retail Loans: 1. KYC guidelines should be very meticulously and strictly complied with and

noting for having verified with originals should be made on relative documents and kept on record.

2. Detailed Pre -sanction inspection including visit to the place of residence and work as well as property to be purchased, must be carried out independently, preferably without giving prior information to the applicant.

3. Independent enquiries from the employer in respect of salaried person about employment status and salary should be made. A copy of the latest salary slip should be obtained to avoid any effort for fabrication in the salary / income.

4. In case of applicants other than salaried persons, the original taxpayer’s copy of challans of tax deposited should be verified to ascertain genuineness of Income Tax Returns and also the assessment orders for earlier years. Housing proposals of the persons, who have filled their income tax returns of last three years in one lot, should not be entertained.

5. For verification of Income related papers viz. IT Returns, Income Tax Challans etc. services of authorized agency / Chartered Accountants may be availed in consultation with the concerned Regional Office.

6. In cases, where the status of the employment as well as the employer is doubtful, the branches should discourage considering loans to such persons.

7. No middleman should be entertained for any retail credit proposal. 8. Our ASCROM Cell has devised Borrower-wise search utility programme,

which enable branches in searching the name of the borrowers, who have availed credit facilities from other branches. Therefore, if there is more than one branch at the center, the branch should ensure before considering the loan application, that applicant is not enjoying any retail loan from any other branch at the center.

9. Branches should use the facility of CIBIL data with the help of their Regional Offices to cross check the borrowings by the applicant from other banks.

10. Credit rating in prescribed module relevant to the retail loan proposal should be carried out in each case before taking credit decision.

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11. The branches should in writing ascertain from the builder / vendor / supplier the details of his Bank, Branch and account number for the purpose of making payment on disbursement of the loan amount directly to him.

12. Search report / legal opinion obtained about immovable property from Bank’s approved advocate should be exhaustive and complete containing all vital points. All papers and terms and conditions as suggested by Bank’s advocate should invariably obtained / complied with while creating equitable mortgage on the property proposed as security.

13. Proposals for financing a house / flat developed by the builders not having good reputation in the local market / whose names are appearing in the negative list should not be considered.

14. Every disbursement, wherever need to be made in stages, should be back ed by site / spot inspection and relative inspection report should be kept on record.

15. Post sanction inspection after final disbursement should be carried out to ensure that borrower has taken possession of the house / flat besides verification of end use of funds.

16. Wherever applicants are not maintaining their savings account with us, the branch should obtain statement of principal account of the applicant, wherein salary is being credited for critical / proper analysis in order to ascertain conduct of the account and other existing liabilities of the applicant.

The above safe guard needs to be taken care by the branches while considering any retail loan proposal. The purpose is to make aware the branches to take preventive care for protecting bank’s interest as well as the operating staff and it should no way hamper the growth of the business.

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ADHERENCE TO TIME NORMS OF TURN AROUND TIME (TAT) IN RETAIL LENDING

[ BCC:BR:101:198 dated 15th July, 2009 ]

As we know that our bank has identified “Quality Growth of Retail Loans” as one of the thrust areas. During the current year the thrust on Retail Lending has to continue. The area of Retail Lending caters to the ever growing needs of our customers and therefore offers ample scope for quali ty credit deployment with better yields and an opportunity to cross sell. Our Bank’s Housing Loan product and Auto Loan Products have established themselves amongst a cross section of the society across the country. Our Bank implemented the innovative idea of ‘Retail Loan Factory’ (RLF) in addition to our Branch’s network as focused points of sale for aggressive marketing of our Retail Products. We have been able, with the active involvement of all branches, to achieve encountering results but at the same time we receive reports of instances of dissatisfaction amongst the customers. The dissatisfaction is mainly on account of delays in sanctioning and disbursement of Housing Loan, Auto Loan and Education Loan cases. It has been observed that most of the complaints received by our Chairman & Managing Director, Executive Director and other Executives are related to undue delay in sanctions and disbursements only. This not only negates all the good work done by the operating units but also damages our Bank’s image and in turn generates avoidable bad publicity. Bank has already stipulated the time norms for disposal of Retail Loans as under:

a) 6 days for sanction by RLF for all products. b) 2 days for sanction and disbursement of Auto Loans by Branches. c) 7 days (for loans up to Rs 7.50 lac ) and 15 days (for loans above Rs 7.50

lac) for sanction and disbursement of Education Loan by Branches. d) 14 days for sanction and disbursement of Housing Loans by Branches. e) 14 days for sanction and disbursement of all other Retail Loans not covered

above. The essence of stipulating time norms was to ensure speedy delivery of Retail Credit. We, at RLF have already made a promise to deliver the credit within 6 days, and therefore, we are under an obligation to honor it. It is our duty and commitment towards our customers that the promise of speedy delivery of credit is delivered to avoid any customer dissatisfaction. Therefore, there is an urgent need to introspect and evolve strategies to ensure Retail Credit Delivery within prescribed time frame. We may clarify that the loan applications which are not worthy of consideration should be rejected at the first instance itself, after recording cogent reasons, so that same does not result in applicants making complaints. We request all the Branches, RLF and controlling authorities to ensure that instances of delays at the decision making authorities are minimized to avoid any loss of reputation and image of our Bank.

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CRISIL RATING MODELS

[BCC: BR: 101:311 dated 12.10.2009]

It is well known that under retail lending, presently the credit rating exercise is being carried out as per Arthur Anderson Model to evaluate risk perception of loan proposals under Baroda Home Loan, Baroda Education Loan, Baroda Car Loan, Baroda Personal Loan and Baroda Traders Loan, however, for limits over Rs 25.00 lacs under Baroda Traders Loan is being carried out under CRISIL Model. The scales for the various parameters required for rating the above loans were fixed in consultation with our Risk Management Deptt. Subsequent to applicability of BASEL II guidelines in our Bank for evaluation of Risk perception for Retail Loans, a need is felt to review the weight given to various parameters for evaluation of risk perception and to make the Risk Rating Model BASEL II compliant. Accordingly our Risk Management Deptt, in consultation with CRISIL, has developed various Credit Rating Model named as “ Bank of Baroda Risk Assessment Model (BOBRAM)” and the credit rating will be carried out on line LAPS. These Risk Rating Models have been divided into four models namely Home Loan Model (HL), Education Loan Model (EL), Clean Loan Model (CL) and Secured Loan Model (SL). Risk rating for all nine products under Retail Loans have to be carried out under the above four models. Mapping for various products are as under : Name of Retail Loan Product Risk Rating Model to be

used Baroda Home Loan incl; Baroda Home Loan to NRI / PIO Baroda Home Improvement Loan Baroda Golden Jubilee Rural HL Baroda Additional Assured Advance to Residents as well as NRI / PIO

HL i.e. Home Loan Model

Baroda Education Loan incl; Baroda Vidya, Baroda Gyan, Baroda Scholar and Baroda Career Development Loan

EL i.e. Education Loan Model

Baroda Auto Loan Baroda Personal Loan

CL i.e. Clean Loan Model

Baroda Mortgage Loan Baroda Loan to Doctors Baroda Loan / Advance Against Securities Baroda Ashray Baroda Traders Loan

SL i.e. Secured Loan Model

Please note that loan proposals over Rs 25.00 lac under Baroda Traders Loan shall continue to be rated under old model as hitherto. The above guidelines have come into effect from 26.10.2009.

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Compliance of Guidelines to avoid occurrence of frauds- Introduction of checklist

[BCC: BR: 103:180 dated 27.06.2011] As per directives of Fraud Monitoring Cell (FMC) Reserve Bank of India, Snap Audit of various branches where Retail Loans increased substantially during recent years, were carried out by Inspection and Audit Deptt. During the snap audit of these branches, various lapses of serious nature were observed by the Inspectors / Auditors which could lead to occurrence of frauds. Therefore, with a view to avoid such lapses, it has been decided to introduce a system of having a Check list of various activities (which are mandatory for sanctioning, disbursing and post sanction follow up monitoring) to be signed by the Branch Heads and kept along with the loan documents for the purpose of verification by the Inspectors /Auditors. The check list contains two parts as annexed to the circular: Part A : Activities to be undertaken up to Sanction Stage Part B : Activities to be undertaken at post sanction stage. Both, Part A and Part B of the check list are required to be prepared by the Appraising /Recommending Authority and to be verified by the Branch Head under his signature and to be kept with the loan documents for its verification by the Inspectors /Auditors. Please take a careful note of above guidelines for its strict and meticulous compliance.

PART –A FRAUD PREVENTION CHECKLIST TO BE KEPT WITH THE LOAN DOCUMENTS

(Pre sanction Stage) Following information to be verified by the Branch head Name of Branch ……. Name of Account…… Sr. No.

Guidelines Compliance Comments of Branch Head

1 KYC Compliance Details of the Document and Date of Verification

Confirmed or any other comment

1.1 Address of Borrowers and Guarantors verified

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1.2 Identity of the Borrower /Guarantor verified 1.3 Occupation and address of working place verified 2 Pre-Sanction Inspection 2.1 Date of Pre sanction Inspection 2.2 Name of Officer who carried out Pre Sanction Inspection and the

date

2.3 Whether Pre-Sanction Inspection Report kept on record 2.4 Whether CIBIL verification carried out 2.5 Whether verified from ASCROM Report 2.6 Whether Credit rating done and the score is above the cut off

point.

3 Verification of ITR/ Form No 16/ Salary Slips 3.1 ITR Verified from IT Deptt on, (date) 3.2 Form No. 16 / Salary Slip verified from the employers record

(Date of verification and name of officer)

4 Verification of Banking Relationship 4.1 Existing Loan Accounts of the borrower with our Bank /other

Banks examined (Yes /No)

4.2 Statement of Accounts of other Banks obtained and examined and nothing adverse found (Yes/No)

5 Valuation Report of the Property Offered as security obtained and the same is not more than 3 years old and there is no abnormal increase in value during last 3 years. Please Give Date of Valuation and value of property

6 Legal Opinion and NEC for creation of mortgage is obtained (Yes/No), If yes

6.1 Whether Legal Opinion is in prescribed format also give the date of opinion and NEC

6.2 Whether all the observations /suggestion of advocate are complied with

7 Whether Deviations if any have been approved by the competent authority

8 Whether detailed Sanction Letter Issued providing the information about all type of Charges e.g. Processing Charges, Review Charges, LAD Charges, etc

8.1 Whether terms of sanction have been accepted by the borrower and guarantor both

We confi rm having verified the above information. (Signature of Branch Head) Place Date:

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PART –B

FRAUD PREVENTION CHECKLIST TO BE KEPT WITH LOAN DOCUMENTS (Post Sanction stage)

Following information to be verified by the Branch head Name of Branch ……. Name of Account…… Sr. No.

Guidelines Compliance Comments of Branch Head

1 All the Documents have been executed as per terms of sanction (Date and name of the Officer in whose presence the documents are executed)

1.1 Whether proper Mortgage has been created as per terms of sanction along with complete chain of title deeds and relevant documents as per opinion of advocate.

1.2 Whether a notice of creation of mortgage has been sent to Sub -Registrar/Talati/ Tehsildar /Revenue Authorities for noting Bank’s lien over the property.

1.3 Whether Documents have been vetted by Legal Advisor other than who has given NEC (or the Zonal Legal Cell as the case may be (date of vetting)

1.4 All the observation made in document verification report have been complied with (Yes /no)

2 Disbursement of Loan 2.1 Whether pre-disbursement inspection carried out and authority

for disbursement from sanctioning authority obtained

2.2 Whether disbursement of loan is made directly to the Builder/Supplier of good

2.3 Disbursement is made by DD/BC mentioning his Bank account details after verifications of the credentials of the Builder /seller/Dealer of the goods to be supplied.

2.4 Duly acknowledged Receipt of the payment made to builder/seller/ dealer is received and kept on record.

3 Post Disbursement Verification: 3.1 Name of Officer carried our Post Disbursement Inspection/Asset

Verification and Date of verification

3.2 Whether any adverse feature observed, if yes whether necessary steps initiated

3.3 Whether Insurance cover for securities obtained We confirm having verified the above information. (Signature of Branch Head) Place Date: