Product Handbook (For Internal Circulation Only)

Marketing Department

Corporate Office, Bangalore

DISCLAIMER

This Product Handbook covering gist of Bank’s and Third Party products has been designed & created by Marketing Department (for internal circulation only) with the contributions from respective functional departments at apex level. The contents in this handbook are updated as on 30th April, 2014.

Readers are advised to refer to the circulars quoted at the end of each topic or the concerned department for further details/ clarifications.

Executive Director’s Message

Dear Colleagues,

The Product Knowledge plays a vital role in Quality Business. The researches have shown that Sales/ Branch Staff having complete information about their own products have better chance of tapping business.

Taking into account the growing need for empowering all categories of employees, particularly the young brigade who have joined the Bank in recent past, the Marketing Department has taken initiative to provide gist of Bank’s own and Third Party Products in quite handy format

It is expected that this Product Handbook will facilitate all the employees to act as marketing person directly /indirectly by providing need based product solutions to our existing / prospective customers.

Please take best advantage of this Product Handbook & explore the avenues for taking the business to greater heights.

With Best Wishes!

M Anjaneya Prasad 20.08.2014

Executive Director’s Message

Dear Colleagues,

Banking is passing through a critical period in terms of slow growth & competition among peer banks. We have to accelerate the growth in business particularly in retail area.

The right mix of 4 Ps’ i.e. Product, Price, Place and Promotion is of great significance in Marketing. We have well-knit bouquet of products with competitive pricing, available for distribution through strong network of over 3,250 branches spread over all the States and Union Territories of the country, supported by over 28,000 employees. I have felt that what is missing is the product knowledge at all levels.

Leveraging right mix of 4 Ps’ for business growth, particularly in area of Retail, Priority Sector, Alternate Delivery Channels and Third Party Products; Marketing Department has come out with this Product Handbook. It will fill the gap existing in form of correct knowledge of products and terms & conditions.

I urge each one of you to enrich yourself with product knowledge to provide need-based product offering to the customers for Quality Sales.

With Best Wishes!

T K Srivastava 20.08.2014

General Manager- Marketing Message

Dear Colleagues,

Employee empowerment enables employees to make decisions about their jobs and take responsibility for their results. It helps employees serve customers at the level of the organization, where the customer interface exists.

It has been the endeavour of the Marketing Department to extend support to the field functionaries to attain Sales & Service Excellence.

In order to empower all employees with the basic knowledge of all products and services currently available in the Bank, we have bought out this Product Handbook with the contributions from respective functional departments at apex level, which is expected to serve as a Ready Reckoner. I am sure this handbook will facilitate all Marketing / Branch Staff in responding to Customers Queries effectively & promptly for Business Development.

Let us accelerate the efforts for marketing of all products and services with more vigour & vitality to attain “Business Excellence” through Knowledge Based Approach.

With Best Wishes!

SK Dhingra 20.08.2014

Knowledge has to be improved, challenged, and increased constantly, or it vanishes.

-Peter Drucker

The best advice I ever got was that knowledge is power and to keep reading.

-David Bailey

SYNDICATE BANK

PRODUCTS AT A GLANCE

Index

S.No. Products Page

I ASSET PRODUCTS

A RETAIL LOANS 7-30

B MSME 31-41

II LIABILITIY PRODUCTS

A SAVINGS ACCOUNT 42

B CURRENT ACCOUNT 43-46

C DEPOSIT 47-50

III PARA BANKING PRODUCTS

A LIFE INSURANCE 51

B GENERAL INSURANCE 52-53

C GROUP INSURANCE 54

D MUTUAL FUNDS 55

E CMS 56-58

F NATIONAL PENSION SCHEME 59

IV ALTERNATE BANKING CHANNELS

PRODUCTS

A PAYMENT CARDS & POS 60-65

B INTERNET BANKING 66

C SMS BANKING & MISSED CALL BANKING 67-68

D MOBILE BANKING 69

E NEFT / RTGS 70

G UTILITY BILL PAYMENT 70

H FUNDS TRANSFER / REMITTANCE FACILITY 70

V PRIORITY SECTOR ADVANCES 71-86

7

ASSET PRODUCTS

1. SYND SARAL: Clean Demand loans/ Mortgage or Liquid security based OSL to Salaried/non-salaried

/NRI /Women/Agriculturists and for consumer durables. SyndSuvidha, SyndKisan, SyndMahila and

SyndPravasi merged with SyndSaral and specific features of products retained post-merger.

Purpose To meet any genuine personal credit needs

Facility DL: Max. Tenure 60 months

for salaried & Non-salaried

ODC – Max ` 2 Lacs

DL/ OSL : Max. Tenure 60 months

SOD - Renewable every 2 years

Target group Salaried Class:

Permanent employees of

State/ Central Govt / Public

Sector / Reputed Private

Sector Companies/Teachers/

Professors /Pensioner

Non-Salaried Class: Professionals/Doctors/

Engineers/Lawyer/CAs &

other non-salaried class etc.

All types of borrowers: Offering

NSC/LIC/IVP/KVP/

RBI Bonds OR Mortgage

of property as security

Amount of

finance

Not exceeding 12 Months Gross Salary – no max ceiling if salary credited through our bank Not exceeding 12 Months Gross Salary –max Rs 3 lacs if salary not credited through our bank

Maximum ` 5 lacs i. 50% of Gross Annual Income If latest ITAO is submitted or 100% of average Income if last 3 year ITAOs are submitted ii. 60% of the value of the property if Mortgage is offered as security

NSC/IVP/KVP: 80% of purchase price if completed 24 months or 65% of purchase price if completed 12 months but less than 24 months. RBI relief bond: 80% of purchase value LIP : 80% of Surrender Value

Requirements

Either of

i. Salary/ Pension credited at

the branch level

ii. Irrevocable letter from the

employer to deduct and

remit the installments

iii. Post dated cheques can

be accepted

iv. Irrevocable letter from

the surety in case his salary

is credited with us

i. Valid mortgage is to be

created in case the applicant

is unable to produce proof

of income

ii. Manager can assess the

income in case no proof of

income is produced

iii. Post dated cheques can

be accepted

i. The genuineness of the

securities offered (ie.,

NSC/LIC/IVP/KVP/RBI

bonds) is to be verified

ii. Security should have

completed the minimum

lock in period.

Surety 3rd

party acceptable to the Sanctioning Authority

Interest BR+ 4.75% pa Concession of 0.25%pa is available for women beneficiaries if the loan amount is upto `.1.50 lakhs.

BR+ 4.75%pa BR+1.75% pa

Cut back ONLY FOR SALARY / NON- SALARIED CLASS DLs:

(i) Cut back not to exceed 50 % of gross salary / 60% in case voluntary contributions like

LIC etc / 70% in case Spouse has separate income from regular employment

(ii) Pensioners - 50%

Service

Charges

0.50% of the Loan amount with minimum of ` 500/-.

Documentatio

n

Application - AF 673

For DL - ASD 3, OF 1904, SP1208 & ASD 6;

For ODC – DF 157,ASD 1,ASD 2,ASD 6

For OSL: ASD 3, 6& 14 , SP

1208. For SOD: DF157, ASD 3,

ASD 6

Reference

Circulars

BC Cir 086/2002, 23/2003, 132/2003, 158/2010,192/2010,105/2010,43/2010, 36/2012

AND 38/2014

8

2. SYNDSARAL-FOR PURCHASE OF CONSUMER DURABLES-SPECIAL FEATURES

Purpose To purchase consumer durable

Facility OSL

Tenure Not more than 60 EMIs

Target group Salaried & Non- Salaried Class

Requirements

Salary is to be credited or undertaking letter from employer is to be obtained

Quotations for the items proposed to be purchased is to be submitted

Declaration for having purchased the items to be obtained

Quantum loan

calculation

i. Salaried class: 80% of invoice or 10 Months Gross Salary which ever is

less Maximum ` 2 lac

ii. For a Pensioner – Maximum ` 1 lac

iii. Non- Salaried: 80% of the invoice or 50% of the Gross Annual Income as

per ITAO or Return filed.

Rate of interest BR + 4.75%pa (As per cir no 158/2010 )

Surety Third party acceptable to the Bank

Cutback i. Cutback not to exceed 50 % of gross salary.

ii. Cutback may go up to 60% in case voluntary contributions like LIC etc

iii. Cutback can go up to 70% in case Spouse has separate income from regular

employment

iv. Cutback not to exceed 50% for pensioners

Documentation For OSL - ASD 3, 6& 14 , SP 1208

For SOD - DF157, ASD 3, 6& 14 and 140, AF 471

Reference BC Cir. 086/2002, 23/2003,132/2003 AND 43/2014

3. SYNDSARAL –PERSONAL LOANS TO WOMEN – SPECIAL FEATURES

Purpose To meet any genuine personal credit needs.

Facility DL

Target group

Women employees and self employed in the age group of 20 to 50

Salaried Class: Permanent employees of State/ Central Govt / Public Sector /

Reputed Private Sector Cos/ Teachers /Professors

Non–Salaried Class: Professionals/Self Employed/ C A s & other non-salaried

class etc. including House-wife.

Requirement

s

Salary/ Pension to be credited at the branch level.

Irrevocable letter from the employer to deduct and remit the installments.

Post dated cheques can be accepted.

Irrevocable letter from the surety in case his salary is credited with us.

Quantum of

finance

If salary is credited at the branch – Not exceeding 12 Months Gross Salary

If salary is not credited at branch- Not exceeding 10 Months Gross Salary

If maintaining a RD a/c – 10 months RD contribution

If having a SB a/c – 6 months average monthly balance maintained at the SB a/c

If professional & Self Employed- 50% of the gross annual income

Minimum

/Maximum

Minimum loan – ` 10,000/-

Maximum loan – ` 1,50,000/-

Terms and conditions of SyndSaral Scheme for General public are applicable if the

amount of loan is above ` 1.50 lakhs.

9

Surety Earning family member or a 3rd party acceptable to the Sanctioning Authority

Interest BR+ 4.75% minus 0.25% as per cir no 158/2010

Cut back i. Not to exceed 60% in case salary is not credited with us

ii. 70% in case salary is credited with us

iii. 75% if Spouse has separate income from regular employment

Service

charges

As per Circular BC 134/2012 – 0.5 % of loan amount – Min ` 500

Documentati

on

Application in AF 673 –

For DL - ASD 3, OF 1904 ( R), SP1208 & ASD6

Reference BC Cir 207/2004, 242/2008, 158/2010, 43/2010 AND 38/2014

4. SYNDSARAL –PERSONAL LOANS TO AGRICULTURISTS-SPECIAL FEATURES

Purpose To meet any genuine credit requirements/purchase consumer durables like TV,

Fridge, Washing Machine, Video/ Audio Equipment, etc.

Facility DL(for clean loans)/OSL (for purchase of consumer durables/vehicles)

Eligibility Agriculturists. Clean loans may be sanctioned only to existing customers who have

availed some facility with the bank and have mortgaged the property. For new

clients, the facility is to be extended only on secured basis.

Quantum Demand Loan: 50% of average gross annual income or ` 1.00 lakh, whichever is

less, where proof of income from Revenue Authorities is submitted. Where proof

of income from Revenue Authorities is not available, manager shall make a fair

and realistic assessment of the party’s income after getting necessary details and

satisfy himself about the income of the borrower, his repayment capacity etc. In

such event, loan is restricted to 50% of gross annual income or ` 0.25 lakh,

whichever is less.

OSL: 80% of the consumer durable/vehicle to be purchased or 50% of annual

income or ` 0.50 lakh, whichever is less.

Repayment Not exceeding 3 years. The repayment may be fixed to coincide with the

periodicity of his income, viz., monthly/quarterly/half-yearly/yearly

ROI As per cir no 158/2010 (compounded monthly)

Guarantee Good third party guarantee acceptable to the Bank

Other terms Where there is an existing mortgage or charge on lands, the proposed loan may

also be covered by the same.

Charging of

interest

Interest shall be charged to the loan account monthly. However, the same can be

collected along with installment, i.e., monthly/quarterly/ half yearly/yearly.

Cutback Not applicable

Service

charges

As per Circular BC 134/2012 – 0.5 % of loan amount – Min ` 500

Documentation Application form: AF 673

DL:

a) ASD 1, ASD 2, SP 1208 & AF 412, for loans to be closed within 1 year

b) ASD-3, OF-1904I, SP-1208 & ASD-6 for loans to be closed after 1 year

OSL:

a) ASD 22, ASD 7, ASD 8

b) Other usual documents to be obtained for secured loans/mortgage loans

10

5. SYNDSARAL- PERSONAL LOANS TO NRIS – SPECIAL FEATURES

Target group NRIs having NRE /FCNR/NRO accounts for a period of at least 1 year and are

sending remittances regularly

Purpose To purchase vehicles/ household consumer durables/others

To meet any genuine personal credit requirements

Nature of facility DL

Quantum

Salaried: 12 months Gross Salary

Non-Salaried : 50% of Gross Annual Income

WITH A CAP OF ` 3.00 lacs

Repayment

35 EMIs

Shall be debited to operative NRE/FCNR/NRO accounts of the party or by way

of inward remittances

Interest DL BR+4.75%pa

Guarantee 3rd party acceptable to the bank; spouse having independent income can also

join as surety

Other terms and

conditions

i. Proof of income such as, IT Assessment Order, salary Certificate etc. shall

be obtained

ii. Loan documents shall be executed by NRIs themselves.

iii. Power of Attorney holder shall not be permitted to execute the loan

documents.

iv. Undertaking letter to maintain sufficient balance in the operative account

of the NRI towards loan instalments with standing instruction letter

authorizing the bank/branch to deduct the loan instalments from this

operative account periodically, to be obtained, for all types of loans.

Documentation Application Form: AF 673

ASD 3, OF 1904 I, SP 1208, ASD 6

Reference BC Cir 74/2004, 106/07BC, 158/2010 AND 43/2010

6. SYNDVAHAN

PURPOSE

Purchase of New / Second hand4 WHEELER Purchase of New 2 WHEELER

ELIGIBILITY

Only for those having annual income of

` 2 Lacs Per Annum and above.

Annual income minimum of

` 0.50 lac/-

Individuals

Proprietorship, Partnership firms , Trusts, Societies, other legal entities except

HUF, Directors/Employees of the Corporates.

(Agriculturists can also be sanctioned SyndVahan. (HO:BC 134/05)

Employees of our Bank are also eligible under this scheme.

Pigmy Agents are not eligible.

Corporate borrowers who are enjoying credit facilities with us with credit rating

of Synd1 to Synd 04, with a record of satisfactory dealings

11

QUANTUM

OF FINANCE

NEW CAR:

95% of on-Road price of the vehicle (or) 3

times the Gross Annual Income whichever is

less.

85% of On road price for loans of above 25

lakhs for loans to Corporate Borrowers

Second Hand Four Wheeler:

Age of the Second Hand Four Wheeler

Up to 2 years ` 10.00 lacs

Above 2 years up to 3 years ` 8.00 lacs

Above 3 years up to 4 years ` 6.00 lacs

Above 4 years up to 5 years ` 5.00 lacs

OR 70% of the valuation of the vehicle

whichever is less.

NEW Vehicle

6 Months gross salary (or)

95% of on – road price whichever

is low; with no max. Ceiling.

Second Hand two wheelers are

not eligible for financing.

CUTBACK (i). Normally not to exceed 50 % of gross salary;

60% in case voluntary savings.

70% in case Spouse has separate income from regular employment.

(ii) Not to exceed 50% for pensioners.

SECURITY Hypothecation of the Vehicle to be purchased

SURETY Third party guarantee is waived ( BC 136/2012 )

12

RATE OF

INTEREST

As per cir (HO: BC 240/2013) wef 16.09.2013

BR +2.00 % for 2 wheelers

BR +0.65 % for 4 Wheelers

REPAYMENT New 4 Wheelers – 84 EMIs;

OLD 4 Wheeler –

Up to 4 years -60 EMI

Above 4 years up to 5 years- 48 EMI

For Two Wheelers – 60 months

PROCESSING

AND

DOCUMENTA

TION

CHARGES

Two Wheelers

Upto ` 25000/- ` 50/-

Above ` 25000/-

upto ` 2.00 lakhs

` 1.25 per ` 1000- or

part thereof-Minimum ` 125/-

Above ` 2.00 lakhs ` 200/- per lakh

Four Wheelers

Above ` 25000/-

upto ` 2.00 lakhs

` 1.25 per ` 1000- or part thereof-

Minimum ` 125/-

Above ` 2.00 lakhs ` 200/- per lakh

REGISTRATI

ON OF THE

VEHICLE

Four Wheeler may be registered in the name of a close relative of the borrower, in

which case the person in whose name the vehicle is registered shall join the

transaction as co-borrower. A close relative for this purpose shall mean

spouse/parents/son/ Daughter.

POST

SANCTION

FOLLOW UP

1. Bank Hypothecation charge noted in RC Book.

2. Comprehensive insurance for the full value of the vehicle with Bank clause

3. Taking possession of Duplicate Switch Key may be waived

4. Inspection once in a year in case of regular a/cs– ADV 43

DOCUMENTA

TION

Application Form AF 673.

SP 1208, ASD 4,OF 1904R, ASD13 & Letter as per Annexure 83 of Manual Of

Instruction

CHECKLIST For Salaried Class: Pan Card copy/Address Proof copy/Latest Salary Slip/

For Non Salary/Business Class: Pan Card copy/Address Proof copy/3 years IT-

Returns with statement of income

Proforma Invoice of the vehicle, Valuation report in case of finance to old vehicles.

Ensure strict adherence to KYC norms.

SYNDVAHAN:

DOs

1. In CBS account to be opened under product code : 779

2. Follow the fast path/navigation for opening of loan account as per job card provided by

:CO:DIT

3. Obtain copy of Invoice, stamped receipt, confirmation of delivery of vehicle in Form ASD 13

4. Conduct vehicle Inspection and obtain ADV43 immediately after purchase and subsequently

once in year. Obtain one ignition key of the vehicle for our records.

5. Obtain a copy of registration Certificate issued by the concerned Regional Transport Authority

and confirm noting of Bank’s hypothecation lien in the same

6. Obtain Blank Form No 29 and Form No30, signed by the borrower(2 sets)

7. Preferably obtain a photo of the vehicle (four wheeler) along with owner/borrower and vehicle

registration number.

DONTs

1. Do not encourage finance for second hand vehicles.

2. Do not dilute KYC norms.

3. Do not accept quotations from who are not company authorized dealer

4. Do not release loan proceeds to customer’s account for purchase of vehicles. Release

specifically to the authorized dealer (supplier).

13

5. Do not allow vehicle insurance to lapse

6. Do not permit sale of vehicle or cancellation of Bank’s lien on the RC before closure of loan in

the Bank.

7. Do not allow loan account to slip in to NPA status as the asset can deteriorate fast.

8. Do not go for seizing of vehicle without following the proper procedure.

7. SYNDNIVAS PLUS

Purpose To meet any personal or business credit need

Eligibility HL customers with satisfactory repayment record of 2 years or more

Quantum Value of property at time of sanction or present value, whichever is lower, less

HL Balance outstanding subject to a maximum of ` 3.00 lakhs .

Security Extension of mortgage created under HL

Rate of interest BR + 3.25% for sanctions made on or after 19/11/2011as per HO Cir

338/2011/BC

Surety/Co

obligant

All persons who have joined the HL mortgage transaction

Repayment Max. 60 EMI

Processing Fees No Processing fees

Cutback norms As applicable to HL

Others Loan to be offered on pre approved basis as per format to all eligible customers

without waiting for their request Staff members are also eligible.

Documentation Standard documentation as applicable to secured facility backed by mortgage.

Ref HO Cir 84/2006 dated 29/04/2006,277/2006,158/2010,338/2011

8. SYNDSENIOR

Purpose To meet any bona-fide personal / business credit requirement

Nature of Facility 1. Demand Loan

2. Overdraft facility

Classification Non Priority clean personal loans.

Eligibility Pensioners in receipt of regular monthly pension from Central / State

Governments / Public Sector Units / Defence Establishments and other

government or quasi government institutions whose pensions are being routed

through accounts held with our Bank.

Quantum

Quantum of loan that can be sanctioned based upon age profile of borrower as

follows:

Demand Loan

Age range Basis for arriving at quantum Maximum permissible loan

(Amount in lakhs)

upto 65 years 18 times gross monthly pension

routed through our Bank ` 3.00

65 – 70 years 18 times gross monthly pension

routed through our Bank ` 1.50

14

Over 70 years 5 months gross pension being

routed through our Bank ` 0.50

Overdraft facility Overdrawal in Pensioner’s Savings Bank account by way of debit balance upto

maximum of one month last drawn pension.

Repayment 1. Demand Loan- In EMIs not exceeding 72 months

2. Overdraft - Principal to be repaid within Two months from the date of

availing the facility and interest to be serviced monthly. If the liabilities

remain outstanding beyond 30 days they tend to slip into SMA/NPA category

and thus attract prudential norms.

Rate of Interest Base Rate+3.75% pa

Surety a. Surety need not be insisted for loans upto 6 months gross pension or ` 50000

whichever is less

b. In all other cases the surety of a family member or that of a third party shall

be obtained. The surety should have adequate means / income.

c. Overdraft facility- Spouse.-In the absence of spouse, any one of the legal

heirs/suitable third party surety.

Security Unsecured.

Cut – Back 50% of income from verifiable sources annual income.

Processing Fee For loans Upto ` 50,000/- No processing charges

For other loans Flat processing charges of. ` 200 per loan

For Overdraft facility No processing charges

Documentation 1. Demand loan-Application Form: AF 673,

SP 1208, ASD 3, OF 1904R, ASD 6.

2. Overdraft facility-Letter of request from the pensioner, ASD-1 (DPN), ASD-

2 & Recovery mandate (as per annexure-1) shall be signed / executed by both

the Pensioner & spouse. In the absence of spouse any one of the legal

heir/suitable third party surety.

Other Conditions The overdraft facility is not a revolving one, branches need to take the documents

given above every time the customer approaches the Bank for overdrawal.

Reporting ROs shall report position of the scheme in AR 3041 to CO:RBD.

Outstandings under the Overdraft shall be reported in AR 3041 under Synd Senior.

15

9. SYNDNIVAS

ELIGIBILITY CRITERIA

Resident :

Resident Indians who are major but not

more than 55 years of age (may be relaxed to

60 years in deserving cases by the

sanctioning authority) and who are in gainful

employment/profession /business having

sufficient and regular income to repay the

loan with interest.Joint borrowing with

wife/close relatives may be considered where

property is held in joint names.

Non resident:

Non-Resident Indians holding Indian Passport and

persons of Indian

Origin resident outside India who are having repaying

capacity.

Pensioners :

Pensioners including individuals retired from

services of various institutions under VRS

drawing assured monthly pension provided

that they are not more than 60 years of age.

Hindu Undivided Families :

HUFs for construction of dwelling units for the benefit of

HUF and Co - Parceners, may be permitted by taking due

precautions about legality of the mortgage.

Staff members of our Bank :

Staff members of the Bank subject

fulfillment of the criteria as per extant

guidelines in force from time to time(

Cir.No.289/2010/BC dated 04.11.2010 &

Cir. No. 143/2011/BC dated 01.06.2011)

Staff Members of RRBs : Staff members of Regional Rural Banks sponsored by the

Bank

Circular No.092-2012-BC-RBD-18/21-03-2012

PURPOSE

1. For purchasing a plot provided an undertaking is obtained from the borrower that he/she/they shall

complete the construction of house on the said plot with the help of bank finance or otherwise within

a period of 2 years from the date of availment of said finance. (Cir. No.279/-010-BCRBD-29 Dt.

6.10.2010)

2. For acquiring house site and constructing a house thereon.

3. For construction of house on the land-already owned by the party/held on lease provided the lease is

perpetual/unexpired period of lease is 50 years or more.

4. For out-right purchase of ready built house/flat of not more than twenty five years old.

5. For purchase of flat to be constructed by the Society / Builders.

6. For making extension / additions vertical or horizontal to the existing house.

7 For carrying out repairs/renovations to the existing house / flat.

8. Takeover of Housing Loans from other Financial institutions such as Public Sector Banks / Other

Banks / Housing Intermediaries/NBFCs, Cooperative Societies and Army Group Insurance Fund etc.

16

QUANTUM:

Basis for quantum of loan:

1. 80% OR 90% of project cost for new constructions / purchase of ready built house / flats. 70% of

Project Cost for old house aged more than 5 years.

2. 72 months Gross Salary in case of Salaried Class.

3. 6 times of 3 years average income in case of non-salaried class.

4. Total deductions should not exceed 60% of Gross Salary in case of Salaried Class and 50% of Gross

Annual Income in case of non-salaried class.

whichever is less

Clubbing of salary of spouse, father, mother, son, daughter, is permitted for determining the

quantum of loan, if the sanctioning Authority is satisfied that their income is available for

repayment alongwith the income of the borrower during the tenure of the loan, provided he/she has

not availed any loan for the same purpose from any other Bank. Or any other source of finance and

joins the transaction as co borrower. In case of salaried Class, income from Agriculture or any other

sources, subject to production of authentical proof of income can be clubbed.

Components of project cost

The total project cost includes cost of land, construction cost, building insurance premium, cost of

installing lighting/ heating system based on Solar Energy. Further, cost of furniture/fixtures including air

conditioners, geysers, cots, tables, sofas, etc of standard make especially having ISI mark wherever

applicable may be included in the project cost subject to the ceiling of not exceeding 10% of the project

cost excluding above items (Cost of Stamp duty, registration and other documentation charges should not

be included in the project cost).

CUTBACK :

Salaried- 50% of the Gross Annual Income.

Non Salaried: 50% OF GROSS Annual Income.

MARGIN :

Loans below ` 20.00 lacs – 10%

Loans of ` 20.00 lacs and Less than ` 75.00 lacs - 20%

Loans of ` 75.00 lacs and above - 25%

In respect of purchase of plots, Branches / Sanctioning /Authority shall be guided by HO Cir. No.279-

2010-BC Dt. 26.10.2010 i.e. Margin: 50%

LOAN TO VALUE (LTV) RATIO.

Loans below ` 20.00 lacs - 90%

Loans of ` 20.00 lacs and less than ` 75.00 lacs - 80%

Loans of ` 75.00 lacs and above – 75%

In case Moratorium period interest is added to the loan amount, LTV ratio prescribed by RBI shall

be adhered to by taking into account Moratorium period interest also. No further deviations/relaxations are permitted in margin for loans with LTV ratio of 80%/90%. However

in respect of loans of ` 75.00 lacs and above, LTV ratio can be relaxed upto 80% by

DGMs/GMs heading

ROs and GMs at Corporate Office, selectively depending on the merits of individual cases.

Rate of Interest: Base Rate ie presently 10.25% irrespective of tenor and amount of the loan

(Subject to revision from time to time)

Present Processing and Documentation Charges(subject to revision from time to time)

Loan Amount Processing and Documentation Charges.

Loans upto ` 25.00 lakhs -0.125% of the loan amount with a minimum of ` 500/- and maximum of ` 2500/-

Loans Above ` 25.00 lakhs to ` 75.00 lakhs-0.125% of the loan amount with a maximum of ` 3250/- .

Loans above ` 75.00 lakhs - ` 10000/- (Flat)

17

Prepayment Charges (Subject to modifications)

1. NIL, if the loan is prepaid from own source.

2. Nil in case of loans taken over by other Banks/Financial Institutions.

Surety/Guarantor: Waived (Possibility of obtaining surety /Guarantee of spouse wherever necessity is

felt shall be explored.

Security: Mortgage of Plot / House/Flat to be constructed / purchased.

Release :

1. For loans sanctioned for construction, it shall be released in 4 to 5 convenient installments depending

on the progress in construction & ensuring that borrower has invested his margin as well. Second and

subsequent releases shall be made only after verification of satisfactory full utilization of earlier

released amount.

2. Where loan is sanctioned for outright purchase of house/flat, loan amount along with the margin

money collected from the applicant shall be released to the Vendor at the time of registration of sale

deed.

3. Disbursal of Housing Loans sanctioned to individuals should be linked to the stages of construction

of Housing Project/Houses and upfront disbursal should not be made in cases of incomplete/under

construction/green field Housing Projects.

Repayment :

Not exceeding 30 years or 75 years of age whichever is earlier. (Including repayment holiday if any).

Repayment Holiday :

1. 18 months maximum - in case of construction.

2. No repayment holiday in case of purchase of Ready built House/

Flat or Old House/Flat.

Insurance Property: 1. The House / Flat constructed / acquired shall be insured by the applicant in the

joint names of applicant and the Bank for the total cost of the House / Flat against natural calamity of

earthquake and fire risk with riot and strike clause. Premium shall be borne by the borrower

2. Life of Borrower: At the option of the borrower.

Valuation :

1. If the loan is ` 2.00 lacs and above & below ` 100.00 lacs ---By Bank’s Approved Valuer.

2 If loan is ` 100.00 lacs and above, --- By two independent Bank’s Approved valuers. Least of the two

shall be taken into consideration. (Cir. No.328-2010-BC-RMD Dt 7.12.2010).

DOCUMENTATION:AF 612,Stamped Receipt, Undertaking letter to debit monthly instalments,

documents for creation of mortgage ASD7, ASD8, ASD9,ASD10,, undertaking letter from the employer

for deduction of instalments, Undertaking letter from the employee to the employer for deduction of

instalments.

Caution:

1. Where loan is sanctioned for purchase of property within the family members, clearance from

respective ROs shall be obtained before the release of the loan (Cir No. 29/2012/BC/RBD/06

dated 31.01.2012.

2. In case of Housing Loans ` 10.00 lakhs and above, second search report shall be obtained

immediately before the release of the loan (Cir. No. 335/2011/BC/RBD dated 30.11.2011.

Inspection Charges: (Subject to revision from time to time)

Up to ` 50 lakhs ` 250/- per year (One visit)

Above ` 50 lakhs ` 500/- per year (One visit)

Irregular/NPA loans ` 500/- per visit

CHECK LIST FOR HOUSING LOAN APPLICATION 1. Loan Application Form (AF 613, completed in all respects.

2. Individual Asset and liabilities form (ADV 80A) completed in all respect.

3. Account number and Customer ID of applicant/s and Surety/ies

4. Photos of applicant/s and surety/ies

18

5. Phone No. and mobile No. of applicant/s and Surety / ies

List of Enclosures to be submitted along with the application:

For Salaried Class: (for both Applicant/s and Surety /ies)

1. Pan Card copy

2. Address Proof copy (like Telephone bill, Voter ID, DL etc., )

3. Passport copy

4. Employee ID copy

5. 6 months Latest Salary Slip

6. 1 year Statements of A/cs where Salary is being credited.

7. Copies of ITAO and Income Tax Return /Form 16 for the last three years.

8. Previous and present employment details of applicant with proof.

For Non Salary/Business Class: (for both Applicant/s and Surety /ies)

1. Pan Card copy

2. Address Proof copy (like Telephone bill, Voter ID, DL etc., )

3. Passport copy

4. 1 Year Statements of A/cs

5. 3 years IT-Returns with statement of income.

6. Copies of audited Balance Sheet/Profit and Loss account

7. Proof of Business (Like VAT/ GST registration copy etc.,)

For NRIs/PIOs:

1. Copies of Passport/Visa:

2. Work permit/Job contract/appointment order:

3. Special power of attorney as per bank format duly executed in the presence of the officials of the

Embassy and adjudicated in India.

4. 3 months Latest Salary certificate with deductions/ITR for 3 years:

5. F/C account statement for the last 2 years

6. Statement of SB account for the last 2 year.

7. Proof of margin money from NRE/NRO account

8. Declaration that the house/flat shall be used for own use on return from abroad:

9. Declaration regarding proposed period of stay in abroad to be submitted.

PRIVATE PROPERTY: Title deeds (submit list in duplicate mentioning name of document against

each item whether original/photo copies)

No laminated title deed is to be accepted

i) Prior Title Deeds and Documents: Sale deed/partition deed/gift deed/settlement conveyance

deed/lease deed (if the original is not available, certified copies).

ii) BBMP Khatha certificate / Record of Rights (RTC) extract from revenue authorities.

iii) Encumbrance Certificate from the Sub-Registrar’s Office.

a) for the past 13 years in case property was purchased and

b) for the past 25 years in case the property is inherited

iv) Conversion order, Betterment Tax paid Receipt, if necessary

v) Approved Plan & Licence /blue print and commencement certificate.

vi) Latest land/building tax paid receipt.

vii) Detailed estimation from the Licenced Engineer.

viii) Original agreement of sale duly stamped. For flats agreement of sale of Undivided share of

land and Construction Agreement and if Undivided Share of land is registered then

Registered sale deed and receipt of margin money paid to the vendor/builder.

19

II. FOR SITES ALLOTTED BY STATUTORY BODIES SUCH AS BDA, MDA, DDA, CITB,

KHB AND SOCIETIES:

i) Allotment letter issued by the Statutory Body/Society

ii) Approved Plan & Licence/blue print and commencement certificate.

iii) Latest land/building tax paid receipt.

iv) Detailed estimation from the Licenced Engineer.

v) Absolute deed and or conditional sale/auction sale/lease-cum-sale deed by the statutory

body/society.

vi) Layout Plan copy.

vii) E.C. from the date of allotment or for the last 13 years whichever is later.

viii) Possession Certificate issued by the statutory body/societies.

ix) N O C from the statutory body/societies to mortgage the property in our favour.

III. In case of Additions/alterations/repairs and renovation appropriate plan approval and

estimate to be submitted.

IV. For takeover of loans from other Financial Institutions: i) Take over of loan is presently permitted only for Salaried class. For business class, RO

permission to be obtained. Income of spouse, who is an income tax payer alone, can be

accepted.

ii) Loan should have been availed for the purpose of house construction/repairs/ purchase of

ready built house/flat/plot and only 75% of the project cost or outstanding balance

whichever is less will be considered.

iii) Copy of the Sanction letter and Housing Loan account statement since beginning.

iv) N O C from the bank/financial institution mentioning therein account is regular, balance

outstanding as on date, closure and other charges, if any and their willingness to handover

the documents if the amount is paid in full along with the list of documents held.

v) The property should have been constructed as per the approved plan.

vi) Copies of the property title deeds along with the latest tax paid receipt, Khatha extract and

certificate and up to date Encumbrance Certificate (Minimum 13 years).

vii) Applicant and surety must have account with our bank branch where they want to avail the

loan.

viii) Non-refundable 25% of the processing charges to be collected up front in terms of HO

Circular No. 17/09/BC dated 21.01.2009.

20

10. SYND VIDYA

(EDUCATIONAL LOAN SCHEME FOR STUDIES WITH IN INDIA AND ABROAD)

ELIGIBILITY: Students (Indian National) who have secured admission to a higher education course in

recognized Institutions in India or Abroad through Entrance Test/Merit Based Selection process after

completion of HSC or equivalent.

It would be in order for braches to consider a meritorious student (who qualified for a seat under merit quota)

eligible for loan under this scheme even if the student chooses to pursue a course under Management Quota.

ELIGIBLE COURSES-STUDIES IN INDIA

i) Approved courses leading to graduate/ Post

Graduate degree,Ph D and P G diploma

conducted by recognized colleges/ universities

recognized by UGC/ Govt./ AICTE/ AIBMS/

ICMR ii) Courses like ICWA, CA, CFA etc.

iii)Courses conducted by IIMs, IITs, IISc,

XLRI. NIFT, NID etc.

iv)Regular Degree/Diploma courses like

Aeronautical, pilot training, shipping etc.,

Degree/Diploma in Nursing or any other

discipline approved by Director General of Civil

Aviation/Shipping Indian Nursing Council or

any other Regulatory body as the case may be, if

pursued in India.

v)Approved courses offered in India by reputed

foreign universities.

vi)Other courses leading to diploma/ degree

conducted by colleges/ universities approved by

UGC/Govt./AICTE/AIBMS/ ICMR etc

vii) Courses offered by National Institutes and

other reputed private institutions.

viii) Courses, which are not covered under the

criteria, mentioned above, RLCAC-I may take a

view to consider extending Education loan

under the scheme taking into account the future

prospects by user institution.

ix) Teacher training course/Nursing course/

B.Ed are eligible for education loan, provided

the training institutions are approved either by

the Central Govt. or by the State Govt.

and such courses should lead to Degree or

Diploma course and not to certification course.

ELIGIBLE COURSES-STUDIES ABROAD

i) Graduation: For job oriented professional/ technical

courses offered by reputed universities.

ii) Post graduation: MCA, MBA, MS, etc.

iii) Courses conducted by CIMA-London, CPA in USA etc.

vi) Degree/diploma courses like aeronautical, pilot training,

shipping etc provided these are recognized by competent

regulatory bodies in India/abroad for the purpose of

employment in India/abroad.

Branches may use the following portal for verifying the

affilications /rankings of University/Colleges.

www.webometrics.info, www.ugc.ac.in,

www.education.nic.in,

www.aicte.org.in

(c) Undergraduate Medical Courses in China, Russia and

otherForeign Universities:

Medical Council of India (MCI) has stipulated that students

who are desirous of joining an undergraduate course in any

foreign medical

institution have to approach MCI for issue of an eligibility

certificate. The

loan application can be accepted only if the eligibility

certificate is produced which shall be verified and an attested

copy must be retained

with the application. For details regarding the foreign

institutions recognised by MCI, the same may be obtained

from their website

www.mciindia.org In case of delay in producing the

eligibility certificate, necessary proof for having applied for

the same and an undertaking letter from the borrowers for

production of the same at the earliest shall be

obtained by the Branches and kept on record and followed

up.

21

EXPENSES CONSIDERED FOR LOAN:

(i) Fee payable to college/ school/ hostel*

(ii) Examination/ Library/ Laboratory fee.

(iii) Travel expenses/ Passage money for studies

abroad.

(iv) Insurance premium for student borrower, if

applicable.

(v) Caution deposit, Building fund/refundable

deposit supported by Institution bills/

receipts**

(vi) Purchase of books/ equipments/ instruments

/ uniforms***

(vii) Purchase of computer at reasonable cost,

if required for completion of the course***

(viii) Any other expense required to complete

the course -like study tours, project work,

thesis,etc***

(ix) Insurance Premium.

(x)

*Reasonable lodging and boarding charges will

be considered in case the student chooses / is

required to opt for outside accommodation.

** These expenses could be considered subject

to the condition that the amount does not exceed

10% of the total tuition fees for the entire

course. In case refundable deposit included by

educational Institutions as study expenses, is

financed by the Bank, it shall be credited to the

loan dues after completion of the course, for

which due undertaking letter from the

borrowers shall be obtained.

*** It is likely that expenditure under Item Nos.

vi, vii & viii above may not be available in the

schedule of fees and charges prescribed by the

college authorities. Therefore, a realistic

assessment may be made of the requirement

under these heads. However, the maximum

expenses included under vi, vii & viii may be

capped at 20% of the total tuition fees payable

for completion of the course.

SECURITY

Upto ` 4.00 lakhs: No security.

Parents to be joint borrower(s).

Above ` 4.00 lakhs and upto. ` 7.50 lakhs ; Parent(s) as

joint borrower(s) , and suitable third party guarantee will be

taken. The Bank in exceptional cases, may waive third party

guarantee if satisfied with the net-worth / means of parent/s,

who would be executing the documents as joint borrower(s)

on receipt of recommendations from the Branch.

Above ` 7.50 lakhs: Parent(s)as joint borrower Tangible

collateral security of suitable value acceptable to bank, along

with the assignment of future income of the student for

payment of installments.

* The loan documents should be executed by both the student

and the parent/ guardian as joint-borrower.

* The security can be in the form of land/building

/Govt.securities/ Public Sector Bonds/ Units of UTI, NSC,

KVP, life policy, gold, and shares/ mutual fund

Units/debentures, bank deposit in the name of student /

parent / guardian / any other third party or any other tangible

security acceptable to the bank with suitable margin.

* Wherever the land/ building is already mortgaged, the

unencumbered portion can be taken as security on second

charge basis provided it covers the required loan amount.

Meritorious students – Waiver of security:

Branches which wish to support highly/exceptionally

meritorious/deserving

students without taking tangible collateral security may refer

such cases as deviation to the RLCAC - I for permission on a

very selective basis.

22

QUANTUM OF LOAN

Studies in India -Maximum upto ` 10.00 lakhs.

Studies Abroad -Maximum upto ` 20.00 lakhs.

The ceilings fixed for studies in India and

Abroad correspond to the limits fixed by the

RBI for treatment as priority sector lending. It

would, however, be in order for Branches to

consider higher quantum of loan on course to

course basis (eg: courses in IIMs, ISB etc). It

may also be noted. that even loans in excess of

10 lakhs qualify for interest subsidy under

Central Sector Interest Subsidy Scheme for

loans upto 10 lakhs subject to scheme guidelines

applicable.

MARGIN

1. Upto ` 4.00 lacs Nil

2. Above ` 4.00 lacs

a. Studies in India 5%

b. Studies Abroad 15%

Scholarship/ assistantship to be included in margin. Margin

may be brought-in on year-to-year basis as and when

disbursements are made on a pro-rata basis.

INTEREST

1. Upto ` 4.00 lacs BR + 2.25%

2.Above ` 4.00 lacs BR + 2.75%

1% concession in applicable rate is available

to children of Employees of Government

Department / Public Sector

Undertakings/Corporations and Blue Chip

Companies, where there is tie up

arrangement or corporates who give

irrevocable undertaking letter.

0.50% to SC/ST Boy students. 0.50% for

Girl students of other than SC/ST category.

0.75% for girl students of SC/ST category.

The overall concession extended to these

categories shall not exceed 1%.

Note: These concessions are not cumulative and

in case the borrower is eligible for multiple

concessions the maximum concession eligible

under any applicable category shall be extended.

* Simple interest to be charged during the study

period and up to commencement of repayment.

Note: Servicing of interest during study period

and the moratorium period till commencement

of repayment is optional for students. Accrued

interest will be added to the principal amount

borrowed while fixing EMI for repayment at the

end of moratorium. Central Sector Interest

Subsidy Scheme (CSIS) is available for loans

upto 10.00 lakhs till the scheme is in

force as per Scheme guidelines.

REPAYMENT

Repayment Holiday/Moratorium:

Course period + 1 year or 6 months after getting job,

whichever is earlier.

If the student is not able to complete the course within the

scheduled time, extension of time for completion of course

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

For loans up to ` 7.50 lakhs – up to 10 years (exclusive of

moratorium period)

For loans above ` 7.50 lakhs – up to 15 years (exclusive of

moratorium period)

Note: No prepayment penalty will be levied for prepayment

of loan any time during the tenure of the loan.

23

Processing and Documentation charges:

No Processing/Documentation/Upfront charges

to be levied on loans sanctioned under the

Scheme.

Insurance:

As on date, coverage of liability or the borrower/co-borrower

under Insurance is not compulsory. Bank has availed a Group

Life Insurance Policy with M/s Metlife Insurance Company

Limited under the name “SyndVidya Met Flexi Shield” AND

Uni-Study Care policy with M/s United India Insurance Co.

Ltd., to cover the lives of the Education Loan

borrowers. Branches may explain the uidelines of both the

schemes to the students/parents and may be persuaded for

availing Insurance Coverage. The amount of such premium

can be added to the project cost/eligible expenses at the time

of sanction.

DISPOSAL OF APPLICATION

Normally, sanction/rejection will be

communicated within 15 days of receipt of duly

completed application with supporting

documents.

b) Rejection of loan application, if any, shall be

done with the concurrence of the controlling

authority of the branch concerned and conveyed

to the student stating reasons for rejection.

Reasons for rejection shall not violate IBA

model education loan policy read with FAQ.

MANAGEMENT QUOTA

Where a student has appeared for the common entrance

test/selection process and could not get selection of

course/college of his choice

through such selection process on account of rank and

chooses to pursue a course/college of his choice under

Management Quota, the

eligibility shall be computed based on the fees as approved

by the State Government/ Government approved regulatory

body for payment seats plus other admissible expenses shall

be considered subject to viability of repayment and the same

shall be considered under IBA Model Education Loan

Scheme.

INSURANCE

As on date, coverage of liability or the

borrower/co-borrower under Insurance is not

compulsory. Bank has availed a Group Life

Insurance Policy with M/s Metlife Insurance

Company Limited under the name “SyndVidya

Met Flexi Shield” AND Uni-Study Care policy

with M/s United India Insurance Co. Ltd., to

cover the lives of the Education Loan

borrowers. Branches may explain the guidelines

of both the schemes to the students/parents and

may be persuaded for availing Insurance

Coverage.

The amount of such premium can be added to

the project cost/eligible expenses at the time of

sanction.

SUBSIDY

Central Sector Interest SubsidyScheme (CSIS) is available to

students whose family income is upto ` 4.50 lakhs for all

loans upto ` 10.00 lakhs(For loans above ` 10.00 lakhs,

subsidy is upto ` 10.00 lakhs only) till the scheme in force..

LOAN TO MORE THAN ONE CHILD IN A

FAMILY:There is no restriction on giving a

second or third collateral free loan to other

siblings when one of the siblings has already

taken a loan.

LOANS TO CHILDREN OF STAFF

Children of our staff can avail SyndVidya loans from

branches where the staff is working at the time of availing

the loan. Whenever the staff are transferred to other

branches, the education loan shall also be transferred to the

branch where they

are transferred. When the staff member retires from the

service during the currency of the loan availed for the

education of their children, the loan can be transferred to the

branch which is nearest to the permanent residence for

further servicing.

Ref. Cir No. 38/2013/BC/RBD/11 dated 14.02.2013

24

Documents to be submitted along with Application

1. Admission Letter from the Institute addressed to Student

2. Marks cards of all previous qualifying examinations

3.Conduct Certificate from last Institution studied

4. Proof of income of Parent(s)/ Guarantor

5. Documents of title and other documents required for Mortgage if needed.

6. PAN CARD of Student and Parent(s)/Guarantor

Documentation: ASD 3, OF 1904, SP 1208, ASD 6, ASD 7 AND 8 OR ASD 10

Repayment Schedule to be written as given in Circular 77/2002/BC dated 6.05.2002

Check list:

1. Mobile numbers, Email , contact telephone numbers, Pan card no, driving license no, UID number

issued by UIDIA of parents and student shall be noted in file and the system without fail by Branch

Officials. In case of studies abroad, bank may obtain the SSN/ Unique Identification Number

(UIN)/Identity Card and note the same in the bank’s records.

2. While granting loans for studies abroad, full particulars of passport and foreign exchange permit, full

particulars of VISA given to the scholar, along with the passport size photographs of the student. Full

overseas address of the scholar in the foreign country shall be obtained.

3. If student is a minor documents shall be obtained in joint names and parents shall execute on his

behalf; once he/ she attains majority fresh AOD is to obtained.

4. Undertaking letter is to be obtained from the student/ parent agreeing to submit progress report

regularly.

5. Undertaking letter to keep the bank informed of any change in address/change in course and details

of employments from time to time and that the student has not availed educational loan for the same

purpose from any other Banks/FIs.

6. If the student is found to be eligible for subsidy under CSIS Scheme currently in force, the applicants

are to be informed of the subsidy available. Income Certificate of the parent(s) from the Designated

Authority for the State and a stamped agreement executed as per Annexure-C of Cir. 217/2010/BC

dated 23.08.2010 shall be obtained. All the interest debited during the year shall be claimed as per

guidelines issued under the Scheme.

Dos and Don’ts

1. Payments of Fees are to be made direct by Branch to the Institution only. On no account should the

fees be remitted to the SB A/c of the borrower, except in the case of reimbursement of Fees and other

eligible expenses of the First year.

2. Release of subsequent installments of loan is to be made only after obtaining latest progress reports

issued by the Institution.

3. Stamped receipt is to be obtained from the Institution for receipt of Fees sent by the Branch and kept

along with loan papers.

For detailed and any other clarifications, please refer HO CIRCULARS: 80/2001, 77/2002, 89/2003,

176/2003,87/2004,183/2004,117/05, 4/2007, 102/2010, 144/2011, 283/2011,209/2012

(For education loan to children of staff members).

25

11. SYND SUPERVIDYA

Purpose of Scheme

The Scheme aims at helping exceptionally meritorious students who

have secured admission to reputed Institutions as give in Annexure by

extending education loans with special provisions

Eligible Courses

Technical courses and Post Graduate Masters degree courses and one

year Executive Development Programme offered in India by Premier

Technical and Management Institutes .

Please refer below mentioned circulars for list of Colleges/Institutions.

Quantum of Loan Maximum ` 20.00 lacs

Guarantee/Surety/C

ollateral security

Guarantee of parents for loans above ` 4.00 lacs. No collateral

security.

Margin 5% Margin

Rate of interest BR+0.50 %( presently 10.50%) if interest is serviced during

moratorium period, otherwise 1% additional interest.

0.50% concession to girl students. However the rate of interest will

not be less than the Base Rate.

Place of sanction Branch nearest to the permanent domicile of parent/guardian or branch

nearer to the institute.

KYC Norms Applicant to submit proof of Identity, Xerox copy of admit card,

admission letter, photo of the applicant.

Add ons The student is eligible to:

Open self introduced SB A/c with Debit-cum-ATM Card.

Avail additional loan upto ` 3.00 lacs if selected to go abroad

under Student Exchange Scheme during the Second Year of the

course in Management, upto the maximum loan of ` 20.00 lacs.

Processing and

Documentation

Charges

Nil

Reference Circulars 144/2011,175/2012

Application: AF 562, ADV 80A of Parent(s)

Documents to be submitted along with Application

1. Admission Letter from the Institute addressed to Student

2. Marks cards of all previous qualifying examinations

3. Conduct Certificate from last Institution studied

4. Proof of income of Parent(s)

5. PAN CARD of Student and Parent(s)/Guarantor.

Documentation: ASD 3, OF 1904, SP 1208, ASD 6

Repayment Schedule to be written as given in Circular 77/2002/BC dated 6.05.2002.

Check list:

1. Mobile numbers, Email , contact telephone numbers, Pan card no, driving license no, UID number

issued by UIDIA of parents and student shall be noted in file and the system without fail by Branch

Official.

2. Undertaking letter is to be obtained from the student/ parent agreeing to submit progress report

regularly.

12. SYND RENT

Purpose Any genuine business/ personal credit requirement

Target group/

Eligibility

Bonafide owners of residential or commercial property standing in their own

names who have let out the same to Government/Institution or Reputed

Companies and our bank premise owners- Existing and New customers ( our

26

bank premises owners and landlords of residential properties leased to our bank

officers also eligible.)

Clearance Clearance from RO required for branch sanction

Maximum

Eligibility

Remaining period of lease including

inbuilt renewal period

Quantum of loan - % of the future net

rentals receivables

Up to 3 years 80 %

Beyond 3 years and up to 5 years 75 %

Beyond 5 years up to 7 years 65 %

Beyond 7 years and up to 9 years 55 %

Deductions applicable to arrive at net rent receivables

i. TDS

ii. Municipal and other applicable Taxes.

iii. Advance Rent already received by the owner.

Take over Selective basis by RO / CO up to delegated powers

Security UREM of the property rented or alternate property whose value shall not be less

than 125% of the loan sanctioned (OR) 110% of NSC/KVP/IVP or Bank’s

deposit etc. For premises occupied by bank, UREM is waived if EMI is

less than the rent payable

Internal rating Minimum Synd 5

Guarantee Third party acceptable to bank (May be waived in deserving cases by next higher

authority)

Interest BR+3.75% for CRE , BR+2.75% for borrowers rated Synd 1 & 2 under CRE.

BR+2.50 % for Non CRE, BR+2.00% for borrowers rated Synd 1 & 2 under

Non CRE

Processing

charges Upto ` 25000/- ` 100 for Non Priority loans

Above ` 25000/- to ` 2 Lakhs ` 2.50 per ` 1000/- or part thereof with a

minimum of ` 250/-

Above ` 2.00 lakhs to ` 100 lakhs-` 400/- per lakh or part thereof

Above ` 100 lakhs to ` 10 crores- in lieu of the processing charges-` 25000/- plus 1% of the loan amount over and above ` 1 crore upto ` 10

crores

Above ` 10 crores to ` 25 crores-` 9.25 lakhs plus 0.75% of the loan amount

over and above ` 10 Crore upto ` 25 Crores.

Above ` 25 Crore to ` 50 Crores- ` 20.50 lakhs plus 0.50 % of the loan

amount over and above ` 25 Crores upto ` 50 Crores.

Above ` 50 crores- ` 33.00 lakhs plus 0.25% for amounts above ` 50 crores

Repayment EMIs not exceeding the unexpired period of lease subject to maximum of 144

months

Other

conditions

Lease agreement in original shall be obtained.

An undertaking letter from the lessee / tenant to remit the rents directly to the

bank.

Pre Sanction /Post sanction formalities shall be scrupulously followed.

Consent from the lessee, to inform the Bank in case of vacating the premises

shall be obtained

Opening of Escrow account may be explored

Documents PA or a letter from the tenant /lessee to remit the rent directly to the Bank is to be

obtained and consent letter from lessee/tenant to the effect that the bank shall be

informed 2 months in advance in case of premature termination of lease.

Tripartite agreement as per performa furnished in Circular

ASD 3, OF 1904/R, SP 1208,ASD 6, OF 1904/ R, SP 1208

ASD 7 and ASD 8 along with original title deeds.

Reference BC 03/2011 , 342/2011, 2/2014 and 82/2014

27

13. SYND MORTGAGE

Purpose For any genuine business / personal credit needs (Not for speculative and

specifically prohibited purposes)

Take over not permitted

Facility OSL (Term Loan)

Target group Bonafide owners (other than agriculturists) of residential or commercial property

standing in their own name.

Eligibility

criteria

Salaried class and business community – (Second mortgage can be created on the

same property for availing some other loans-Margin not to exceed 50%)

Facility Only as OSL: Maximum of Rs 50 lacs

Quantum of

finance

Salaried : 2 to 2.5 times of Annual net salary ; Maximum cutback 60%

Undertaking letter from employer required.

Non salaried: 2 to 2.5 times the average of last 3 years annual income

IT return of last 3 years compulsory

Both Salaried and Non salaried: Clubbing of spouse income backed by IT return.

Agricultural Income shall not be considered

Repayment In equated instalments not exceeding 7 years; instalments can be fixed in quarterly,

half yearly, annually depending upon the income generation of the party

Interest Fresh loans sanctioned on or after 19.11.2011 : Up to 3 years - BR + 4.25 %

Beyond 3 years - BR + 4.75 %

Existing OD a/cs : BR + 6.25 %

Guarantee Party with adequate net worth acceptable to the Bank (Clubbing of income of

spouse permitted if backed by IT Return)

Other terms

&

Conditions

Margin - 50 % of the value of the property

Third party mortgage/agricultural property not accepted

Take over of loan from others not permitted

End use to be verified

Annual inspection of the property and preparation of ADV 84 is a must

Life insurance to be arranged for the borrower

Documenta-

tion

ASD3, OF 1904 /R, SP 1208, ASD6, ASD7 and ASD8 along with original title

deeds.

Prepayment

Charges

2 % on outstanding balance if loan closed by take over by other Banks/ FI

Processing

Charges

0.5 % of the loan amount – Minimum ` 500/-

Documenta-

tion Charges

Above ` 2 lacs @ ` 200/- per lac Max ` 25000/-+ ST

Reference BC Cir 333/2011

14. SYNDVISHRANTHI – (REVERSE MORTGAGE LOAN)

Target Group Senior citizens of India who own self-acquired and self-occupied house property in India

Purpose Supplementing income, any personal expenses, house repairs, etc. Loan amount should not

be used for speculative, trading and business purposes.

Borrower/s Single or jointly with spouse in case of a living spouse (max. two borrowers).

Age Age of first borrower should be above 60 years

Joint

borrowers

In case of married couple the loan shall be in the joint names even though either of them

may hold the title of the property. The applicant who is aged above 60 years shall be the

28

first borrower. However, the spouse/ joint borrower should not be below 55 years of age.

Eligible

Residential

Property

Borrower should be staying at self-acquired and self owned house /flat against which loan is

being raised as his permanent primary residence.

Borrowers will be required to inform the Bank when they cease to use this residence as their

permanent primary residence.

Ancestral or Commercial property owners are not eligible.

NRIs / PIOs (person of Indian Origin) are not eligible.

Title of the

Property

Borrowers should have a clear and transferable title in their names.

Title verification and search report for a period of 30 years to be obtained.

The property should be free from any encumbrances.

In case of property purchased by availing Housing Loan from our/ any other Bank, it will be

considered for RML, subject to closure of the Housing Loan account out of the eligible

lumpsum portion of RML.

Residual Life

of property

Should be at least 20 years in case of single borrower and 25 years in case of spouse being

below 60 years of age.

Certificate from empanelled engineer/architect will be required to be obtained for this

purpose, in addition to valuation of property.

Security Equitable / simple mortgage of residential property

Tenor Minimum 10 years and Maximum 15 years

Or

Till death of the borrower(s), whichever is earlier.

Disbursement

/Periodicity of

availing loan

Monthly / quarterly payments by credit to SB account in the joint names of the borrowers

operated by E or S.

Lumpsum payment not exceeding 20% of the loan amount with a cap of ` 15.00 lacs. This

shall be opted once during the tenure of the loan. Lumpsum payments may be made

conditional and limited to special purposes viz. medical exigencies, upgradation, renovation

& extension of the house, repayment of existing loan on the property.

Disbursement shall be at the discounted value of sanctioned loan amount or eligible

lumpsum disbursement amount.

In case of death of the first borrower during the disbursement period, the payments will

continue to be made to the spouse who has joined the transaction as co-borrower.

29

Quantum of

loan

Independent House Age of Borrower Loans as proportion of

Assessed value of property*

60-65 70%

66-70 70%

71-75 75%

Above 75 75%

Flats Age of Borrower Age of Flat

< 2 years 2-5 years 5-10 years

60-65 60% 55% 45%

66-70 65% 60% 50%

71-75 70% 65% 55%

Above 75 75% 70% 60%

Minimum loan amount - ` 5.00 lacs

Maximum loan amount – Independent House - ` 1.00 Cr; Flats - ` 50 lacs

Disbursement As per the discounted value

Lumpsum

Disbursement

of loan

Lump-Sum disbursement not exceeding 20% of the loan amount with a cap of ` 15.00

lakhs may be opted once

Repayment/

Settlement

The loan shall become due and payable only when the last surviving borrower dies or opts

to sell the home, or permanently moves out of the home for to an institution or to relatives.

Foreclosure The loan shall be liable for foreclosure

i) If the borrower(s) has/have not stayed in the property for a continuous period of one year

or

ii) If the borrower(s) fail(s) to pay property taxes or maintain and repair the residential

property or fail(s) to keep the home insured, the Bank reserves the right to insist on

repayment of loan

Prepayment No prepayment penalty. Prepayment charges of 1% in case of takeover by other banks/

financial institutions, Valuation/

Revaluation of

property and

option to adjust

payments

Revaluations will be done at intervals of 3 years.

Option to revise the periodic/ lumpsum amount every 3 years along with revaluation. Bank

may decide to revise the amount at any time earlier than 3 years.

Loan to Value ratio not to exceed 90% at maturity.

Interest Rate 12.25 % p.a. (Fixed).

Processing fee 0.50% of the loan amount subject to maximum of ` 10,000/-

Right of

Rescission

Up to three business days to cancel the transaction. Processing fee shall not be refunded in

such cases.

Insurance

and

maintenance

of house

property

The house property shall be insured by the borrower at his cost against fire, earthquake and

other calamities. The borrower shall ensure to pay all taxes, charges etc. Bank shall pay

insurance premium, taxes, charges etc. by reducing the loan amount to that extent. The

borrower shall maintain the property in good condition.

Reference BC Cir 318/2008, 164/2010,177/2011,36/2013

15. SYNDSWARNA AND SYNDSWARNA EXPRESS

Purpose All purposes under Priority and Non-Priority Sector against pledge of jewels.

Eligibility Existing and new customers who are properly introduced to the Bank (KYC norms to

be adhered to). Opening of SB account need not be insisted for loans upto ` 50,000/-

Facility Loan or Overdraft. In case of overdraft the maximum permissible limit is ` 10.00

lac.

30

Assessment Branch Managers may appraise the jewels for jewels up to ` 25000/- subject to getting

the same appraised by the Jewel Appraiser subsequently

Scale of

Finance

Scheme 1 - 22 ct & above – ` 1900/- per gram or 75 % of net value

Scheme 2 - 22 ct & above - ` 1800/- per gram or 75 % of net value

(Subject to change depending on market price)

Rate of

Interest

BR+1.75%

Penal Interest 2 % above the applicable rate on all overdue loans except those granted under Priority

Sector up to a limit of ` 25000/-.

Repayment

Period

Scheme 1 - Up to 12 months in one bullet payment

Scheme 2 - Above 12 months and up to 24 months in one bullet payment

Security Pledge of Gold Jewels of adequate value/Hall Marked jewellery, with stipulated

margins

Guarantee Not required

Margin Minimum 25 %

Processing/

Documenta-

tion charges

Waived (Circular 277/2012)

Appraiser Fee 50 paise per `100/- subject to a minimum of ` 30/- maximum ` 300/-

Documenta-

tion

AF 651– (old AF 456) Application Cum Letter of Pledge.

OF 1904 or OF 1903 – Stamped Receipt cum Debit Slip.

ASD-3 (General Agreement) – To be taken only in case of Overdraft facility only

For loans of ` 5.00 lacs and above Prior clearance from RO required

Reappraisal – for loans of ` 1.00 lac and above - as on 31st July of every year at bank’s

cost

Reference BC Cir 71/2012, 224/2012 , 254/2012, 277/2012, 95/2013,64/2014(for incentives) and

73/2014

16. SYND VARSHINI

Purpose Installation of Rainwater harvesting unit

Classification OSL

Quantum 75% of the estimated cost as per the unit cost stipulated below:

Plot Size Unit Cost

up to 1500 sq.ft ` 57700.00

More than 1500 sq.ft upto 2400 sq.ft ` 73000.00

More than 2400sq.ft upto 5000 sq.ft ` 82000.00

More than 5000 sq.ft ` 185000.00

Margin 25 %

Disbursement As far as possible, Specific Release to be done in 2-3 installments

Guarantee Suitable Third Party

Security 1. Hypothecation of pipeline with barrel, filter etc.

2. Continuation of mortgage of residential property in the case of existing housing loan borrowers.

3. No collateral security in the case of borrowers enjoying SyndSaral loans (salaried class) even

though they have housing loans with other Banks/FIs, subject to production of regularity certificate

from the concerned Bank/FI.

4. In the case of non-salaried class, if they fulfill income and other criteria as applicable under

SyndSaral facility, loan may be granted without any collateral security, even if they have availed

housing loans with other Banks/FIs, subject to Production of regularity certificate from the

concerned Bank/FI. Interest Rate BR+2 (Cir 40/2011/BC) Repayment 60 EMIs Processing/

Documentati-on

Charges

Upto ` 25000/- ` Nil

Above ` 25000/- ` 500/-

31

17. SYNDMSME

Target

group

Micro and Small Enterprises (MSE) in Manufacturing and Service sector as per

MSMED Act 2006 and RBI/GOI guidelines

Eligibility All Micro and Small Enterprises (MSE) including Retail Trade classified under

MSE.

There is no cap on Maximum loan amount

Loans to Retail Trade accounts which form part of Service Enterprise is now

enhanced to ` 2 crore from the earlier ` 20 lakh –under MSE.(Ref BC Cir

324/2012)

Nature of

facility

Overdraft/ Term Loans, Bill Limits, LCs/BGs may be offered in one package within

a predetermined overall limit.

Assessment Working Capital requirements of borrowers shall be assessed by adopting the

following methods:

(a) Simplified method in case of borrower seeking fund-based working capital

limits up to ` 25.00 lakhs adopting a Holistic approach.

(b) Turnover method in the case of borrower seeking fund based working capital

credit limits up to ` 5.00 Crores. If the borrower is eligible for higher credit limit as

per EWCL method, the same can be adopted instead of turnover method.

(c) Eligible Working Capital Limit (EWCL) method in case of borrowers seeking

Working capital limits of above ` 5.00 Crores up to ` 20.00 Crores.

(d) Cash budget or EWCL method for working capital needs of borrowers seeking

fund based limit of above ` 20.00 Crores

(e) Assessment of working capital on cash budget method for seasonal and

construction industry wherever adequate MIS support is available with the

borrower.

(f) For assessment of working capital requirements of export customers, any of the

above methods, which is most suitable and appropriate to their business operations

may be adopted.

(g) In the case of credit limits of above ` 2.00 Crores for IT & software industry,

cash budget method shall be adopted for assessment (refer circular No.218-1998-

BC).

Projection shall not exceed 125% of the sales reported in the earlier year unless

Sanctioning Authority is fully convinced of party’s strategy.

Rating Limit up to ` 2.00 lakhs : Simple method

Limit above ` 2.00 lakhs – up to ` 50.000 lakhs : Retail Rating models

Above ` 50.00 lakhs : Software driven RAM rating

Margin Up to ` 25000 : Nil

Above ` 25000 – up to ` 1.00 Crore : 15 %

Above ` 1.00 Crore : 20 %

Renewal Once in two years in case of OD subject to annual review based on ADV 85.

Security Amount Primary Security Collateral Security

Up to ` 10.00 lakhs Primary security

/mortgage of land and

building associated with

the business shall be

obtained and eligible

Accounts shall be covered

under CGMSE.

No collateral security

32

Above ` 10.00 lakhs – up

to ` 1.00 Crore eligible

under CGMSE cover

Primary security

/mortgage of land and

building associated with

the business. All accounts

shall be covered under

CGMSE

No collateral security

i) Above ` 10.00 lakhs

not eligible under

CGMSE cover like Retail

Trade and Educational

Institutions.

ii) Credit facilities more

than ` 1.00 Crore

Hypothecation of

machinery/vehicle/plant

&equipments/stock and

book debts(Not older than

3 months) to cover 110%

of the value of the limit

The sanctioning authority

shall explore the

possibility of obtaining

Mortgage of properties

/other securities of

appropriate value

Guarantee No third party guarantee shall be obtained for credit facilities eligible for coverage

under CGMSE. For other accounts not covered under CGMSE, suitable third party

guarantee shall be obtained.

Third party guarantee is not compulsory if the facility is fully secured by

mortgage/NSC/ KVP/

SV of LIC policy/ RBI relief bonds to the extent of 100% of the amount of advance

(in addition to hypothecation of stock).

The owner of the property /security should join the transaction as guarantor. (If the

property/security are not owned by the borrower).

Interest

Rate

Up to ` 50000 BR+0.50 %

Above ` 50000 – up to ` 10.00 lakhs

BR+1.00 %

Above ` 10.00 lakhs – up

to ` 1.00 crore

Synd 1 and 2 BR+1.25 %

Synd 3 and 4 BR+1.50 %

Synd 5 and 6 BR+2.00 %

Synd 7 and below BR+2.50 %

Above ` 1.00 crore Synd 1 BR+1.25 %

Synd 2 BR+1.50 %

Synd 3 and 4 BR+2.50 %

Synd 5 and 6 BR+3.00 %

Synd 7 and below BR+3.50 %

All Micro Enterprises will get a rebate of 0.50% in rate of interest for prompt

repayment, to be reimbursed at the time of closing the loan account

The tenor premium of 0.25% shall be added for all term loans of 36 months and

above as per the guidelines.

Process

note

For credit facilities up to 10.00 Lakhs, simplified process note as per Cir. 195/2012

shall be used. For credit facilities above 10.00 lakhs, process notes shall be

prepared as per HO Cir. 229-2009-BC dated 13.10.2009 as under:

AF 575-For Term loan with or without Working capital less than 2 Crores.

AF 576-For Working capital less than 2 Crores.

AF 580(R)-For Term loan and/or Working capital of 2 Crores and above.

Insurance Insurance to be insisted if loan limit exceeds 1.00 lakh

Application

and

Documenta-

tion

Type of security Forms to be obtaied

Stock, Book debts,

receivables

SP 1208 (OG. 74)

OF 1904 R (OG. 28 A&B)

ASD 4, ASD 6

33

Plant & Machinery

ASD 4 , OF 1904 R (OG. 28 A&B)

SP 1208 (OG. 74),ASD 13,

ASD 6, AF 444

More than one type of

security

SP 1208 (OG. 74), OF 1904 R (OG. 28A&B),ASD 4,

ASD 6, AF 553 (R), ADV 10, 18, 40 combined

Others Blank Transfer Form and copy of Registration Certificate confirming the lien

notification shall be obtained in case of vehicles.

ASD 14-Combined Letter of Authority for LIC, UTI Units, NSC etc.

ASD 7, 8, 9, 10, 11a & b and 12 in the case of mortgage of immovable property.

Additional documents of OG 33/OG 103/OG 78 in case of partnership firm.

The proof of coverage of accounts/CGPAN No. shall be obtained from RO.

Reference

Circulars

Cir 287/2011, 98/2012, 05/2013, 2/2014.

18. SYND RICE MILL

Target

Group

Direct Agriculture Finance : To individual farmers for pre-harvest and post-harvest

activities such as spraying, weeding, grading, sorting, processing and transporting

undertaken by individuals, SHGs, Co-operatives in rural areas

Indirect Agriculture Loans : To food and agro-based processing units with

investments in plant and machinery up to ` 10.00 crore

Eligibility

a. Existing profit making units.

b. Takeover of good units is also permitted, subject to observance of take-over norms

communicated under Credit Policy/Credit Risk Policy of the Bank subject to hurdle

rate of SYND 4 and above

c. New Units with hurdle rate - SYND 4 Rating and above

Purpose

a. Acquisition/construction of machinery/factory building for

modernization/expansion.

b. Working capital requirements only for Rice Millers. Rice Millers doing milling

activity on job work basis need not be given working capital facility.

Nature of

facility

Term Loans

Working Capital Limits

Non-Fund based limits

Margin Fund Based Facility Term Loans 15 % - 25 %

Working Capital limit Type of stock Margin

Paddy and Rice 20%

Brokens 25%

Bran 30%

Gunny Bags 40%

Book Debts 25%

Non Fund Based Facility Rating of Account Margin

Synd 1 and 2 NIL

Synd 3 5%

Synd 4 10%

Quantum

Quantum of loan amount/limits shall be assessed/arrived at by following the policy

guidelines prescribed for Micro, Small and Medium Enterprises (MSME)

Security

Primary Security: Mortgage/Hypothecation/pledge of assets created out of bank

finance.

Collateral security: Mortgage of land and building/ Hypothecation of Machinery

/tangible security belonging to borrower/ partners/ directors/guarantors equivalent to

not less than 50% of the exposure.

34

Interest Rice Mills Up to ` 2.00 Lakhs BR+0.25 %

Above ` 2.00 Lakhs Synd 1 BR+0.75 %

Synd 2 BR+0.75 %

Synd 3 BR+1.00 %

Synd 4 BR+1.00 %

Tenor premium of 0.25% is applicable, in case of term loans

above 3 years

Rice Millers doing

milling activity on

job basis

Up to ` 2.00 Lakhs BR+0.25 %

Above ` 2.00 Lakhs Synd 1 BR+1.25 %

Synd 2 BR+1.25 %

Synd 3 BR+1.50 %

Synd 4 BR+1.50 %

Tenor premium of 0.25% is applicable, in case of term loans

above 3 years

Repayment Working capital Export credit Synd1,2,3 and 4 – Limit for 3 years

subject to annual review

Other than Export credit Synd1,2 and 3– Limit for 2 years

subject to annual review

Other rated Accounts Limit 1 year subject to renewal in 12

months

Term loans 7 years including gestation period of 6 months. Interest to be

serviced during gestation period

Benchmark

Financial

Parameters

as in

MSME

Working capital Liquidity Current Ratio 1.00 (Minimum)

Indebtedness Solvency

Ratio (TOL:TNW)

5:1

Profitability Net profit earning continuously

Term loans Debt Equity Ratio 3:1

Average DSCR Not less than 1.30

19. SYNDVYAPAR (IMPROVED)

Eligibility Traders, Service Providers and Professionals/Self Employed

Facility SOD / OSL (Repayment period not exceeding 60 Months)

Loan/Limit per

party

` 2.00 Crores maximum can be considered as WC/TL limit and also as a

combination of FB and NFB limits.

Assessment Working Capital Up to ` 25.00

Lakhs

20% of the projected turn over

Above ` 25.00

Lakhs

Not exceeding 125 % of the sales

reported in the earlier year.

Term Loan Norms as per Credit Policy of the Bank

Rate of interest Up to ` 10.00 lacs

BR + 2 %

Above ` 10.00 lacs SYND 1 BR + 2.25%

SYND 2 BR + 2.50 %

SYND 3 BR + 2.75%

SYND 4 BR+ 3.00 %

SYND 5 BR + 3.25%

SYND6 BR + 3.50%

35

SYND 7 And

below

BR + 3.75%

Security and

Margin

Primary Security -

Hypothecation of

stock & book debts

(not older than 3

months)

Limits up to ` 25.00 Lacs

Stock & book debts to cover 100 % of

the value of the limit

Limits above ` 25.00 Lacs

Stock & book debts to cover 110 % of

the value of the limit

Collateral Security

- Mortgage of

property / pledge of

liquid securities

(NSC/LIP/RBI

Relief Bonds)

Limits up to ` 25.00 Lacs

Liquid securities – Securities of face

value equivalent to 100% of the limits

Immovable property – Security of

value equivalent to 133% of the limits

Combination of liquid securities and

immovable property –Value of

immovable property shall not be less

than 133% of the value of the portion

not covered by liquid securities

Limits above ` 25.00 Lacs

Liquid securities – Securities of face

value equivalent to 100% of the limits

Immovable property – Security of

value equivalent to 150% of the limits

Combination of liquid securities and

immovable property –Value of

immovable property shall not be less

than 150% of the value of the portion

not covered by liquid securities

Validity Renewal once in 2 years, subject to annual review.

Surety/

Guarantor

Not necessary if fully secured by Mortgage / Liquid securities apart from stocks.

Owner of property to join as Guarantor / Surety, if the property is not owned by

the borrower.

Documentation AF708, ADV 80A

DF157, ASD-4, ASD6, DF 140(LA), AF 553 R for LIP

ASD7, ASD 8, ASD 9, ASD 10 (For additional mortgage), ASD11(a) or (b)

Others Stock/book debts should be equal to limit sanctioned/outstanding for credit

limits up to ` 25.00 Lakhs.

Stock/book debts should be equal to 110 % of the limit sanctioned/ outstanding

for credit limits above ` 25.00 Lakhs.

Operations need not be controlled on the basis of drawing power –

ADV44/ADV23 to be submitted quarterly.

Unaudited/audited Fin Statements have to be obtained every year for limits of `

10.00 lacs & above up to ` 25.00 lakhs. For limits of above ` 25.00 Lakhs,

audited financial statement is a must.

Copy of latest sales tax return must be submitted.

Copy of latest ITAO/IT return must be submitted wherever applicable.

Facility to be extended to existing clients and for new accounts which have

shown satisfactory operations at least for 3 months.

Desirable financial parameters shall be observed for limits above ` 10.00 lakhs.

Internal exposure norms shall be observed.

Basic Financial Parameters to be complied for facility of ` 10.00 lacs & above.

For Term loans of above ` 100.00 lakhs with repayment of 60 months and

above, upfront fee @ 1% of the loan amount to be collected.

Tenor premium of 0.25% on all term loans to be added.

Reference 190/2006,144/2012

36

Circulars

20. SYNDDOCTOR

TARGET

GROUP

Professionally qualified Doctors, Registered Medical practitioners in Allopathy,

Homeopathy, Ayurveda, Unani including Dentists, Pathologists and Veterinary.

Promoters of Hospitals, Nursing Home, Pathological Labs, Poly-clinics,

Diagnostic Centres, X-ray labs etc., At least one or more of the

Promoters/Partners/Directors of Health Care unit shall be a qualified doctor with

more than 50% share/ownership.

Eligibility MSEs in Service Sector with original investment in equipments not exceeding ` 200.00 lacs.

Individuals, Prop, Partnership firms, Pvt Ltd Cos, Societies and Trusts

Purpose 1. Setting up Clinic, Nursing Home, Pathological Lab, Drug/Surgical Store

etc.,

2. Construction/Expansion/Modernization/of existing Clinics/Hospitals

(excluding cost of land)

3. Purchase of Surgical, X-ray, CT scan, Electro Medical equipments,

replacements/implants for Hip/Knee/Shoulders/Spine etc.

4. Purchase of Ambulance, Mobile Clinic, Computers, UPS, Air

conditioners, Generators, Refrigerators, Vehicles etc

5. To meet the cost of Rent, Electricity, Purchase of Medicines, Salary and

other maintenance cost of existing Clinic/Hospitals etc.

6. To establish/run Fitness & Health Care Units, Naturopathy, Ayurvedic

Care, Yoga, Acupuncture, Acupressure, Medical Consultancy by target

group.

Nature of

Credit facility OD/OSL/Bills Limits/LCs/BGs

Quantum Rs 500 lacs - Maximum

Margin Upto ` 100.00 lacs -15 %

Above ` 100.00 lacs - 20 %

Rate of interest Upto ` 100.00 Lacs -BR + 1.25 %

Above ` 100.00 Lacs -BR + 1.75 %

Tenor premium 0.25% for term loans.

Processing

charges

50 % of applicable processing, Doc, Mortgage charges as per Cir 134/2012

Security For Loans upto ` 100.00 lac under MSE

Only primary security/mortgage of land and building associated with the

business

No collateral security and /or third party guarantee shall be covered under

CGMSE without exception.

For Loans above ` 100.00 lacs under MSE where CGMSE cover is not available

Hypothecation of assets/Mortgage of property & Collateral security as under

a) Primary Security –

Mortgage/Hypothecation equipments/property/chargeable current/fixed

assets, vehicles etc

b) Collateral Security –

Mortgage of property/other securities etc valued at least 50% of the limits

Repayment Maximum 7 years. Monthly or quarterly installment based on cash flow.

Repayment

Holiday

Maximum 18 months in eligible cases.

37

Guarantee Upto ` 100.00 lacs No third party guarantee

Above ` 100.00 lacs Suitable third party guarantee

(Where CGMSE cover not available)

Minimum

Rating

Synd 4 and above

CGMSE

Coverage

All loans upto ` 100.00 lacs shall be covered without exception.

Other terms &

conditions Periodical Insurance, Inspection of securities

No collateral needed if value of primary security mortgaged more than

150% and realizable market value of land & building itself is more than

100%

All other terms as per Synd MSE scheme (BC Cir 287/2011)

Reference BC Cir 275/2013

21. SYNDCASHEW

Target Group New/existing Cashew processing Units/Industry under MSMEs

Eligibility Individuals, Association, Proprietorship, Partnership firms and Private

Ltd Co.

Satisfactory existing customers.

Micro, Small and Medium Enterprises (MSME) in Manufacturing Sector

with original investments in Plant and Machinery not exceeding ` 10.00

crores.

Purpose For new machinery/equipments/vehicles/stock

Working Capital requirement

Value addition, technology up gradation and shelf life enhancement

Classification Term loan and/ Overdraft and or Non fund based facility.

Pre-shipment and post-shipment advances

Quantum ` 500.00 lacs Maximum

Minimum

Rating

Synd 5 and above

Margin Upto ` 100.00 lacs – 15%

Above ` 100.00 lacs – 20%

Guarantee No third party guarantee for upto ` 100.00 lacs under MSEs

Rate of interest Rating Micro and Small

Enterprises

Medium

Enterprises

Export Credit (Pre-

Shipment Credit)

Synd 1 BR+0.50% BR+0.75% Base Rate

Synd 2 BR+0.50% BR+1.25% Base Rate

Synd 3 BR+1.25% BR+1.75% BR+0.25%

Synd 4 BR+1.50% BR+2.25% BR+0.25%

Synd 5 BR+2.25% BR+2.75% BR+0.50%

Processing

charges

50% of the applicable processing, DOC and mortgage charges as per BC Cir

134/2012

Security Upto ` 100.00 lacs covered under CGMSE

Only primary security/mortgage of land and building associated with the

business

No collateral security and /or third party guarantee shall be covered under

CGMSE without exception.

Hypothecation of Equipments/Machinery/Vehicles/Stock purchased.

Above ` 100.00 lacs not covered under CGMSE: Mortgage/Other security

valued atleast 50% of the limits.

38

Repayment Maximum 7 to 10 years including repayment holiday/moratorium period.

CGMSE

coverage

All loans upto ` 100.00 lacs under MSE shall be covered

Other terms &

Conditions Enhancement of limit for existing parties – RO can permit on case to case

Bank’s hypothecation to be noted in RTO records and RC book for

vehicles

Comprehensive Insurance with bank’s clause

0.25% rebate for SyndExport Gold card holder (Subject to minimum of

base rate)

Entire Forex transactions to be routed through our Bank

Finer rate is applicable to Synd 1 to 5 rated accounts only

Tenor premium 0.25% for Term loans

All other terms as per SyndMSE and all statutory requirements to be

complied

Reference BC Cir 275/2013

22. SYNDTRANSPORT

Target Group Existing/new transport operators engaged in transportation of passengers and

goods – for purchase of New vehicles for commercial purpose

Eligibility Individuals, Association, Proprietorship, Partnership firms and Private

Ltd Co.

Original investment in vehicles and equipments not exceeding ` 2.00

crores

Purpose To purchase all makes of

Transport/utility vehicles

Passenger vehicles like Autorikshaws, Tourist vehicles, Cabs (not for

personal use)

Transport vehicle for delivery of products/services of MSs

For Educational Institutions for transportation of students/faculty/staff

To meet the Working Capital requirement for maintenance of existing fleet of

vehicle and office expenses etc.

Items to be

financed

Chassis + Body Building cost + Registration, Insurance and Road Tax excluding

accessories

Nature of

credit facility

OSL and /or OD

Quantum ` 100.00 lacs Maximum

Minimum

Rating

Synd 4 and above

Margin 15%

Rate of interest Upto ` 50,000/- BR + 0.50%

Above ` 50,000/- upto ` 10.00 lacs BR + 1.00%

Above ` 10.00 lacs BR + 1.25%

Processing

charges

50% of the applicable processing, DOC and mortgage charges as per BC Cir

134/2012

Security Hypothecation of Equipments/Machinery/Vehicles/Stock purchased.

No collateral security/ third party guarantee

To be covered under CGMSE without exception

Repayment Maximum 7 years including repayment holiday/moratorium period of 3 months

Surety No third party guarantee

39

Other terms

and conditions All loans to be covered under CGMSE without exception

Comprehensive Insurance with Bank clause

Economic viability with income generation and surplus to be worked out

Average DSCR not less than 1.30

Tenor premium of 0.25% on term loans

All other terms as per Synd MSE scheme

Reference BC Cir 275/2013

23. SYNDMARBLE

Target Group Marble, granite and stone crushing units

Eligibility Existing units for at least 2 years and shall be MSE in manufacturing sector

with original investment in plant and machinery not exceeding ` 5.00 crores

Purpose To acquire new equipments/machinery/vehicles to start and for expansion

To meet Working Capital requirements

Nature of

credit facility

OSL and /or OD and Non fund based unit

Quantum ` 500.00 lacs Maximum

Minimum

Rating

Synd 4 and above

Margin Up to ` 100.00 lacs 15%

Above ` 100.00 lacs 20%

Rate of interest Upto ` 100.00 lacs BR + 1.00%

Above ` 100.00 lacs BR + 1.75%

Processing

charges

50% of the applicable processing, DOC and mortgage charges as per BC Cir

134/2012

Security Upto ` 100.00 lacs

Hypothecation of Equipments/Machinery/Vehicles/Stock purchased.

No collateral security/ third party guarantee

To be covered under CGMSE without exeption

Above ` 100.00 lacs not covered under CGMSE :

Mortgage of property/other securities etc valued atleast 50% of the limits

sought shall be obtained

Repayment Maximum 7 years including repayment holiday/moratorium period

Surety No third party guarantee

Other terms

and conditions Hypothecation to be noted in the RTO records and also RC books

Comprehensive Insurance with Bank clause

All statutory requirement/licenses including PCB clearance

Tenor premium of 0.25% on term loans

All other terms as per Synd MSE scheme

Reference BC Cir 275/2013

24. SYNDTEXTILE

Target Group Persons engaged in textile sector and manufacture of readymade garments

Eligibility MSE in manufacturing sector with original investment in plant and

machinery not exceeding ` 5.00 crores

Purpose To acquire new equipments/machinery/vehicles to start and for

expansion

40

To meet Working Capital requirements

Nature of

credit facility

OSL and /or OD and Non fund based unit

Quantum No cap on maximum (Unit should be classified as MSE)

Minimum

Rating

Synd 4 and above

Margin 20%

Rate of

interest

Upto ` 100.00 lacs BR + 1.00%

Above ` 100.00 lacs BR + 1.75%

Processing

charges

50% of the applicable processing, DOC and mortgage charges as per BC Cir

134/2012

Security Upto ` 100.00 lacs

Hypothecation of Equipments/Machinery/Vehicles/Stock purchased.

No collateral security/ third party guarantee

To be covered under CGMSE without exception

Above ` 100.00 lacs not covered under CGMSE :

Mortgage of property/other securities etc valued at least 50% of the

limits sought shall be obtained

Repayment Maximum 7 years including repayment holiday/moratorium period

Surety No third party guarantee

Other terms

and conditions Hypothecation to be noted in the RTO records and also RC books

Comprehensive Insurance with Bank clause

All statutory requirement/licenses

Tenor premium of 0.25% on term loans

All loans to be covered under CGMSE without exception

All other terms as per Synd MSE scheme

Reference BC Cir 275/2013

25. SYNDCONTRACTOR

Target Group All registered “A” Class Civil, Electrical, Mechanical, Mining and Transport

Contractors undertaking works on behalf of Central/State Govt Dept/ Public

sector undertakings and reputed Pvt sector organizations etc.,

Eligibility 1. A class registered contractors( Individuals, Prop, Partnerships, Pvt

Ltd/Ltd Cos) engaged in the line of activity

2. Having audited financial statements

3. Classified as MSE Service sector with original investment in Equipments

not exceeding ` 2.00 crores.

Purpose 1.To acquire New Equp/Machy/Vehicles for expansion of activity

2. To meet Working Capital requirements of existing and new units.

Nature of

credit facility

Term Loan and /or Overdraft and Non Fund based limit.

Quantum ` 200.00 lacs Maximum

Margin 20 %

Security If Covered under CGMSE : 1. Hypothecation of Equipments/Machy/Vehicle/Stock purchased

2. Primary Security/ Mortgage of property associated with business

3. No Collateral security/ III Party Guarantee

If not Covered under CGMSE :

1. Hypothecation of Equipments/Machy/Vehicle/Stock purchased

2. Primary Security/ Mortgage of property associated with business

3. Collateral in the form of equitable mortgage of immovable property valued not less than

41

100% of limit for all loans/ limits above ` 100.00 lacs / not covered under CGMSE

Minimum

rating

Synd 4

Assessment of

Working

Capital

Cash Budget Method

Rate of interest Upto ` 100.00 Lacs -- BR + 1.25%

Above ` 100.00 Lacs -- BR + 1.75%

Guarantee No third party guarantee for loans covered under CGMSE

Processing

Charges

50% of applicable processing/commission charges as per Cir 134/2012/BC

Repayment Term Loans : Maximum 7 years including repayment holiday/moratorium

period

Working Capital: To be renewed every year.

(Installment for Term Loan to be fixed based on cash flow at monthly/Qtly/H

Yly)

CGMSE

Coverage

Eligible loans shall be covered

Other terms

and conditions

1 All statutory requirements/licenses to be obtained.

2.Valid registration as “A “ class contractor with the respective registration

authority shall be obtained

1. Tenor premium of 0.25% applicable for Term Loans

2. Hypothecation of vehicles, Comprehensive insurance of assets with Bank

clause

3. Power of Attorney wherever applicable is to be obtained and sent to the

concerned Dept by Regd post with Ack Due

4. Periodical inspection of securities as per extant guidelines.

5. All other guidelines as per SyndMSE scheme to be followed

Other Salient

Features

Borrowers shall be provided with Instant Global Debit Cards, SMS Banking,

Mobile Banking, ABB, SyndSuraksha and SyndArogya scheme benefits.

Reference BC Cir 131/2014

42

II. LIABILITY PRODUCTS

A. SAVINGS BANK ACCOUNT:

Customer Banker relationship starts with CASA:

Prescribed Monthly Average Balance[MAB] ( Metro / Urban / Semi Urban/ Rural)

Rate of Interest 4.0% (at present)

Cheque book facility subject to maintenance of stipulated MAB

Debit card

Internet Banking

SMS and Mobile Banking

Synd Suraksha Term Insurance with ADB, at competitive rates.

i) PREMIUM SAVINGS ACCOUNT:

Unique, Sweep in Sweep out facility

` 10,000 minimum monthly average balance

Amount over and above the prescribed limit gets automatically swept out into a FD for 180 days

in units of ` 1,000/-

In the event of meeting any urgent needs, the FD is swept back into the Premium SB A/c in

required number of units of ` 1000/- without penalty.

Last In First Out (LIFO) method is used while breaking FD, to minimize the interest loss to the

customer.

Reference: BC Cir. No. 20/2002

ii) MULTI-CITY SB ACCOUNT:

Monthly Average Balance (MAB) to be maintained in the account is ` 25000/-

No upper limit for transactions through Account Payee cheques

Self cheques can be paid in cash upto an aggregate limit of ` 50,000/- in a day in non-home

branches.

Reference: BC Cir. No. 058/2004

iii) SYND SAMANYA SAVINGS ACCOUNT ( SMALL ACCOUNTS OR BASIC SAVINGS

BANK DEPOSIT ACCOUNTS):

No Minimum Balance ( Zero Balance Account)

Rate of Interest 4.0% (at present)

No restrictions on number of Cash Receipts, but aggregate of all credits in a financial year shall

not exceed rupees one lakh

Cash withdrawal At Branch Counter – 50 p.a. free of charges

The aggregate of all withdrawals and transfers in a month does not exceed rupees ten thousand;

and the balance at any point of time does not exceed rupees fifty thousand.

No Restrictions for ATM Transaction.

Cheque Book available if MAB in SB is maintained and KYC is complied with as per norms.

(As per RBI guidelines Basic Savings Bank Deposit [BSBD] accounts has to replace the existing

“No frill” accounts. It is under implementation)

Reference: BC Cir No. 243/2012, 047/2013, 138/2014

43

iv) SYNDNAVARATNA SAVINGS BANK ACCOUNT:

A unique group Savings Bank account specially designed for the salaried class employed with

MNCs/Blue Chip Companies/reputed Private organizations/Government and Semi-Government

undertakings.

Special Features of SyndNavaratna: (Circular No.294/2012/BC dt. 13.10.2012) 1. Zero Balance Facility

2. Instant Global Debit Card

3. Add-on debit card to joint account holder

4. SMS Banking facility

5. Funds transfer facility through RTGS/NEFT upto ` 1.00 lac

6. Internet Banking & Mobile Banking Facility

7. Issuance of DD /PO free of charge (six instance in a year upto ceiling of salary credit per

instance)

8. Payable at par, Cheque facility

9. Temporary overdraft facility for 15 days (upto one month net salary after six months of

continuous salary credit through employer) subject to obtaining prescribed undertaking letter.

Target Group/Eligibility:

Minimum of 25 employees per organization should be drawing their salary through direct credit by

the employer to their Savings Bank account. Regional Head has the discretion to relax the number

of employees to 10 in deserving cases.

The employer’s undertaking to credit the monthly salary in the employees’ Savings account

maintained with our Bank, to be taken and mandate for crediting the salary shall not be changed by

the employer without the NOC (no objection certificate) of the Bank.

In case the monthly salary is not credited into the account for more than three consecutive months,

the special features offered under the facility stands withdrawn and the account shall be treated as

Normal savings account and all charges shall be levied as applicable.

Reference: BC Cir. No. 294/2012

B. CURRENT ACCOUNT:

For Traders, Business Enterprises, Partnership firms, Private and Public limited companies,

HUFs/specified associates, Societies, Trusts, etc.

Prescribed Minimum monthly Balance ( Metro / Urban / Semi Urban/ Rural)

Cheque book facility subject to maintenance of stipulated MAB (Monthly Average Balance)

Debit card for Proprietorship accounts

Internet, SMS and Mobile Banking

i) MULTI CITY CURRENT ACCOUNTS:

The following are the 3 variants of Multi-City Current Accounts:

S. No. Name

Monthly Minimum Average

Balance

(MAB ) `

I Synd Silver Current Account 25,000

II Synd Platinum Current Account 2,00,000

II SyndFlexi Premium Current Account

(with sweep-in sweep-out facility) 1,00,00,000

44

Multicity Payable at par cheques

Cash withdrawal by self at non-home branches free (limits apply)

No upper limit for payment of crossed third party cheques upcountry

Upcountry Cash deposit for credit of home-branch A/c free of charge

Collection of outstation cheques free (limits apply for Synd Silver Current Account)

Online remittances free for Synd Platinum Current Account & at concessional rates for Synd

Silver Current Account

Reference: BC Cir. No. 36/2008, 198/2008, 78/2010

ii) SYND FLEXI PREMIUM CURRENT ACCOUNT

A New Current A/c Product, with Sweep-out and Sweep-in facility, for High Value Customers

The features of Synd Flexi Premium Current Account are as under:

All Individuals, Corporate, Proprietorship concerns, Partnership concerns, Associations,

schools, etc. (excluding banks) who are eligible to open Current Account are eligible to open

accounts under this scheme.

Minimum Monthly Average Balance of ` 100.00 lakhs is to be maintained in the account.

Amounts available in the account in excess of ` 100.00 lakhs will get automatically swept-out

into

A Fixed Deposit for 7 to 14 days (minimum 7 days & maximum of 14 days) in units of ` 100.00

lakhs, once in a week.

Rate of interest applicable to Bulk Domestic Term Deposits of ` 1.00 Crore & above of the

tenor of 7 – 14 days is applicable to the fixed deposits swept-out from Synd Flexi Premium

Current Account.

The customer has to opt for the specific tenure for which the amount shall be swept-out to be

placed in fixed deposit, within the prescribed range of 7 to 14 days. The customer shall exercise

this option while opening the Synd Flexi Premium Current Account (one time option).

In the event of shortfall in the balance in Synd Flexi Premium Current account for meeting

clearing cheques or other urgent needs, the fixed deposit will be broken prematurely into units

of ` 100.00 lakhs and swept back into the Flexi Premium Current account free of cost, to the

extent of meeting the need.

Even while breaking the fixed deposit, only the most recently converted fixed deposit is first

broken to minimize interest loss to the customer, following the principle of ‘Last in - First out’.

No interest is payable on amounts that have been swept-in from the fixed deposits before the

completion of 7 days.

No penalty is charged for breaking the fixed deposit prematurely. However, the amount swept-in

earns interest for the period completed (7 to 14 days) at the applicable rate.

Only amounts swept-out of Flexi Premium account are eligible for sweep-in and not any other

Term deposits held in the name of the customer.

When the swept-out fixed deposits mature, the principal will be renewed, crediting the interest

to the Synd Flexi Premium Current account.

No separate deposit receipt will be issued. All entries will be reflected in the statement of

account of the Synd Flexi Premium account.

No loan shall be considered against the amount swept-out and invested in fixed deposits nor can

such deposits be taken as security for any credit facilities.

Nomination facility is available under the scheme.

Payment of interest under the scheme will attract TDS as applicable to normal domestic term

deposits.

Wherever the minimum Monthly Average Balance in the account goes below ` 100.00 lakhs in

a given month, service charges of ` 1,000/- will be levied for that month.

All other charges applicable to non-multi-city Current account are applicable to the Synd Flexi

Premium Current account also.

45

‘Multi-city personalized payable at par’ cheque books may be provided to Synd Flexi Premium

Current accountholders.

Branches may note that Synd Flexi Premium Current Account shall be opened only with the

prior permission of CO: Planning & Development Department, Bangalore.

Points to be noted while opening accounts under the product:

Opening form obtained from the customer shall include a clause authorizing the Bank to vary

the tenor of the product in tune with regulatory instructions / guidelines on minimum period for

payment of interest. In such an eventuality, the Bank will also be at liberty to stop sweep-out

and sweep-in facility till further instructions from the customer.

Nomination made in the case of the flexi premium account and variations therein, if any, will be

applicable to the swept-out deposits also. This may be explained to the depositors and a note -

“This nomination will also be applicable to swept-out deposit/s and renewals thereof unless

instructed otherwise”, may be incorporated in the nomination column of the application

form/nomination register, to this effect.

Statement of account may include details of swept-out deposits chronologically with identifiable

deposit numbers.

Amount of interest paid along with the applicable interest rate shall be identifiable with the

individual swept-out deposits. Statement of accounts on swept-out deposits may have these

details.

TDS deducted on individual deposits may be reflected in the statement along with the deposit.

Refer: Cir. BC 078/2010.

iii) SYND FLEXI SUPER CURRENT A/C:

Back ground. Bank has been receiving representations from some of the

ROs/Branches to introduce a product with sweep-out & sweep-in

facility to cater to the needs of other than high value customers of the

Bank, who are not able to maintain minimum average balances of `

1crore in their accounts.

Taking into consideration the benefits that would accrue to the Bank

by introducing the product and also to canvass the accounts of other

than high value customers a new product – Synd Flexi Super

Current Account - with sweep-out & sweep-in facilities has been

introduced from 27.12.2013.

Features of Synd Flexi

Super Current Account

1. Accounts under “Synd Flexi Super Current Account” scheme will

have sweep-out facility (sweep out to a Term Deposit).

2. The minimum Monthly Average Balance required to be

maintained in the account is ` 5,00,000/-

3. Wherever the minimum Monthly Average Balance in the account

goes below ` 5,00,000/- in a given month, service charges of `

300/- plus Service Tax, will be levied for that month.

Precautions to be taken

by Branches.

1. To extend the facility to only those customers who are eligible to

open such accounts (Banks are not eligible under the scheme).

2. To specify the term of the Term Deposit as one year.

46

Requirement from

Branches:

1. After opening a Current Account under the above product, a

Branch needs to maintain sweep-out instructions to extend sweep-

out facility to the account.

2. The Term Deposits opened by the sweep-out will automatically be

available for sweep-in to the same Current Account from which

sweep-out was effected.

3. Since it is a compounding product, interest get capitalized on every

quarter and on maturity , the total amount inclusive of interest

capitalized gets re-invested as new deposit.

4. A separate Term Deposit Product code 446- “Sweep-Out one year

Synd Flexi Super” has been created for this purpose.

Features of Product

Code 446 “Sweep-Out

one year Synd Flexi

Super”.

1. It is a Term Deposit Product and Balances will appear under GL

Code 160080100 (since compounding product)

2. Minimum amount of deposit ` 1, 00,000/-. Incremental amounts

shall be in multiples of ` 1, 00,000/-.

3. Tenure of the Term Deposit shall be one year.

4. Partial withdrawals are allowed in multiples of ` 1, 00,000/-. In

the event of premature closure of Term Deposit the rate of

interest shall be the rate applicable for the period the deposit has

actually remained with the Bank and not the contracted rate for

one year. No penalty is charged on such pre-mature closure of

Term Deposits. No interest is payable if the deposit is withdrawn

before completion of 7 days.

5. Nomination facility is available under the scheme to all

Individuals, Joint Account holders and Sole Proprietary

Concerns.

6. Payment of interest under the scheme will attract TDS as

applicable to normal Term Deposits.

Some DO’s and

DON’Ts for the

Branches:

1. Do not issue a Deposit Receipts for the deposits opened out of

sweep-out.

2. No Loan shall be arranged on the deposits created out of the

sweep-out. This shall be made very clear to the customer in

writing while opening the account.

3. Cash transaction charges for cash withdrawal/deposit, prescribed

in the circular are to be collected by the Branches. No concession

will be considered under any circumstances.

4. Extend the facility to only eligible customers. Banks are not

eligible.

5. Customer ID for new customer is to be created with appropriate

customer category, as the TDS rate is based on the category.

6. If the existing account holder wants to open a new account under

this scheme, then use the existing Customer ID of the customer

which is already available in the system.

7. Use the same Customer ID for opening both Current Account and

TD account.

8. While setting sweep-out instructions, specify as one year.

9. 9. Sweep out instruction should not be set to any other TD

Product with different tenors other than 446 Product.

Relevant Circular 366/2013/BC Dated 27.12.2013

47

C. VARIOUS TERM DEPOSITS:

i) FIXED DEPOSIT:

Salient features of the scheme are:

Minimum deposit ` 1000/-

Deposits accepted for periods ranging from 7 days to 120 months.

Option available for receiving monthly interest at discounted rates or quarterly interest.

Premature withdrawal of deposit is permitted any time subject to payment of prescribed penalty.

Loans available upto a maximum of 95% of the deposit amount depending on the length of the

unexpired period of the deposit.

Senior Citizens & Staff will be eligible for additional Rate of interest as per applicable norms.

Nomination facility available.

ii) SOCIAL SECURITY DEPOSIT

An ideal deposit scheme with monthly income plan for aged / pensioners/ housewives.

Salient features of the scheme are:

Minimum amount of deposit is `1000/-

Deposits accepted from 1 year to 10 years in completed quarters.

Option to earn interest on monthly (at discounted value) / quarterly basis.

Loan available upto 95% of the deposit amount depending on the length of the unexpired period

of the deposit.

Senior Citizens & Staff will be eligible for additional Rate of interest as per applicable norms.

Nomination facility available.

iii) VIKAS CASH CERTIFICATE

Salient features of the scheme are:

Minimum deposit ` 1000/- and thereafter in multiples of ` 100/-

Period of deposit ranges from 6 months to 10 years in completed quarters.

Interest compounded every quarter, principal + accrued interest paid on maturity.

Senior Citizens & Staff will be eligible for additional Rate of interest as per applicable norms.

Premature withdrawal of the deposit is permitted any time on payment of the prescribed penalty.

Loans upto a maximum of 95% of the balance available depending on the length of the

unexpired period of the deposit.

Nomination facility available.

iv) RECURRING DEPOSIT

Salient features of the scheme are:

Minimum deposit is ` 100/-per month.

Period of deposit ranges from 12 months to 10 years (in completed quarters)

Delayed payment of installments are accepted with nominal penalty.

Monthly minimum balance in the account earns compound interest every quarter.

No tax is deducted from the interest on the deposit.

Loans up to maximum of 95% of the deposit amount available depending on the length of the

unexpired period of the deposit.

Nomination facility available.

The rates of interest are as fixed by the Bank from time to time.

v) SYNDICATE SUVIDHA DEPOSIT

Salient features of the scheme are:

48

A Fixed Deposit with partial withdrawal facility

Deposit accepted for periods ranging from 15 days to 120 months.

Deposit accepted in multiples of ` 1000/- with a minimum of ` 10,000/-

Interest is payable every quarter.

Option is available to withdraw a portion of the deposit in multiples of ` 1000/- whenever

needed.

No penalty is payable on such partial withdrawals.

Senior Citizens & Staff will be eligible for additional Rate of interest as per applicable norms.

Nomination facility available.

The rates of interest are as fixed by the Bank from time to time.

Loan facility against the Deposit can be arranged upto 75% on the Balance amount.

Relevant Circulars: Cir No. 66/1992, 33/1998

vi) SYND TAXSHIELD DEPOSIT SCHEME:

SyndTaxShield is drawn on the lines of the Union Government notification on Bank Term Deposit

Scheme, 2006 for the purpose of Sec 80C(2)(xxi) of the Income Tax Act.

Enables tax savings under Sec 80C (2) (xxi) of the Income Tax Act.

Individuals/ HUF eligible.

Maximum Deposit — ` 1,00,000/-per person p.a.

Tenure : Minimum of 5 Years

Additional rate of interest for Senior Citizens & Staff

No premature withdrawal facility available except in case of death.

No loan facility against this Deposit is available

Interest may be paid in lump sum on maturity/ quarterly/monthly at discounted value

Interest Income from these deposits liable for tax under the IT Act.

Relevant Circular: BC 362/2013.

vii) SENIOR CITIZENS' SECURITY DEPOSIT

Salient features of the scheme are:

Meant for Senior Citizens above 60 years of age.

Minimum amount of deposit is ` 1000/-

Period of Deposits is 12 to 120 months Interest on the deposit is 0.5% above the normal rate.

Interest payable at monthly (discounted rates) or quarterly intervals.

Premature withdrawal of deposit is permitted any time without levy of penalty. Accounts closed

before completion of 12 months are not eligible for additional interest of 0.5%.

Exemption from maintaining prescribed minimum balance in savings Bank account.

Nomination facility available.

viii) PIGMY DEPOSIT SCHEMES

a) Pigmy 1928:

Bank's authorised Pigmy Agents collect daily savings at doorsteps.

Period of the scheme is 63 months.

Minimum of ` 5/- per day is collected.

Conditional Premature withdrawal of deposit permitted.

Loans up to maximum of 75% of the deposit available.

Nomination facility available.

No tax deducted for the interest on the deposit.

b) Pigmy Plus 2007

49

Bank's authorised Pigmy Agents collect daily savings at doorsteps.

Period of the scheme is 72 months.

Minimum of ` 5/- per occasion is collected.

Conditional Premature withdrawal of deposit permitted.

Loans up to maximum of 75% of the deposit available.

Nomination facility available.

No tax deducted for the interest on the deposit.

Conditional conversion to Term Deposits is permitted (Cir 187/2006/BC)

ix) SYND CORPORATE SUVIDHA DEPOSIT SCHEME

Features of the scheme are as follows :

Amount of deposit: The minimum quantum of deposit under the scheme is fixed at ` 500 lacs

and thereafter in multiples of ` 100 lac.

Period of Deposit: 7 days to 180 days.

Rate of Interest: As applicable to other domestic term deposits.

Payment of Interest: Simple interest is payable at quarterly intervals at the contracted rate.

Premature withdrawal in multiple of ` 100 lac permitted subject to one day notice. However

minimum balances of ` 5 crores should be retained after such partial withdrawal.

There is no restriction regarding frequency and number of withdrawals.

No penalty is to be charged on partial withdrawals. Interest payable on such portion shall be the

interest applicable at the time of accepting the deposit for the period the amount remained with

the Bank.

LD can be arranged only on the balance amount held with the Bank.

Reference Circular No. 48/2004

x) FLOATING RATE DEPOSIT SCHEME:

Minimum Amount is ` 100 lacs & in multiples of ` 1 lac. No maximum amount.

Period – one year

Payment of Interest – Quarterly

Rate of Interest – Bench mark rate + spread of 0.25%

Rate of interest will be revised / reset at quarterly intervals on 1st day of calendar quarter.

Bench mark rate will be limited to average yield of 91 days Treasury Bill in primary auction

during preceding quarter.

xi) CAPITAL GAIN ACCOUNT SCHEME 1988

Accepted in all branches except Rural Branches.

By depositing amount under this scheme tax payer can avail of the benefits of exemption from

Capital gains.

Account can be opened in the form of Savings Bank Deposit or Term Deposit (FD or VCC)

Rate of interest – As applicable to general category of accounts (Domestic)

Opening / operations in the accounts are subject to rules framed by Income Tax Authorities.

Nomination facility is available.

xii) NON RESIDENT (EXTERNAL) RUPEE ACCOUNT (NRE A/Cs)

Scheme for individual NRIs for placing their savings.

A/c can be maintained as SB or Term deposit.

Funds are repatriable along with interest.

Credit can exclusively be from:

Foreign remittances/ Travelers cheques/ Foreign currencies or Proceeds of NRE Term deposit,

FCNR (B) deposits or proceeds of certain other investment made out of NRE remittances.

50

Joint accounts with resident close as defined in Sec 6 of the Companies Act 1956 permitted

with operating instructions former or survivor

Term Deposit – Min. 1 year and Max. 10 years

Loan against Term deposit can be availed.

Balances in the NRE/FCNR account in the name of eligible person standing to his/her credit at

the time of his arrival in India . No penalty would be payable for premature withdrawal of

NRE/FCNR deposits in such cases for investment in Resident Foreign Currency (RFC) account.

Auto renewals are permitted if so instructed by the depositor till rescinded.

xiii) FOREIGN CURRENCY NON-RESIDENTS ACCOUNT (FCNR (B) A/Cs)

A/c can be opened with foreign remittances or Proceeds of NRE A/cs.

Funds are fully repatriable.

The Designated currencies are US Dollars (USD), Great Britain Pounds (GBP), EURO,

Canadian Dollars (CAD) and Australian Dollars (AUD).

Presently, FCNR (B) deposits in all the five currencies [EURO, GBP, CAD & AUD & USD]

are permitted to be accepted for the tenor ranging from 1 year to 5 years.

FCNR term deposits are auto renewed under the same terms and conditions.

Loans permitted against these deposits in both Indian as well as foreign currency.

51

III. PARA BANKING PRODUCTS

1. LIFE INSURANCE

(Cir No 286/2013 BC, 336/2013 BC & 66/2014 BC)

Bank has entered into an MOU with LIC of India on 27.6.2013, as its Corporate Agent for selling life

insurance products through its Branch Network. This tie-up will provide a comprehensive insurance

option to our valued customers. LIC of India, offer spectrum of policies covering every segment of the

society.

Few of the Policies are as follows:

Plan Name Type of Plan Features

LIC’s New

Endowment

Plan

Endowment

LIC's New Endowment Plan is a participating non-linked plan

which offers an attractive combination of protection and

saving features. This combination provides financial support

for the family of the deceased policyholder any time before

maturity and good lump sum amount at the time of maturity

for the surviving policyholders.

LIC's New

Jeevan Anand

Plan

Endowment +

Whole of Life

LIC's New Jeevan Anand Plan is a participating non-linked

plan which offers an attractive combination of protection and

savings. This combination provides financial protection

against death throughout the lifetime of the policyholder with

the provision of payment of lumpsum at the end of the

selected policy term in case of his/her survival.

LIC's Single

Premium

Endowment

Plan

Endowment

LIC's Single Premium Endowment Plan is a participating non-

linked savings cum protection plan, where premium is paid in

lump sum at the outset of the policy. This combination

provides financial protection against death during the policy

term with the provision of payment of lumpsum at the end of

the selected policy term in case of his/her survival.

LIC's New

Money Back

Plan-20 years

Money Back

LIC's New Money Back Plan-20 years is a participating non-

linked plan which offers an attractive combination of

protection against death throughout the term of the plan along

with the periodic payment on survival at specified durations

during the term. This unique combination provides financial

support for the family of the deceased policyholder any time

before maturity and lump sum amount at the time of maturity

for the surviving policyholders.

LIC's New

Money Back

Plan-25 years

Money Back

LIC's New Money Back Plan-25 years is a participating non-

linked plan which offers an attractive combination of

protection against death throughout the term of the plan along

with the periodic payment on survival at specified durations

during the term. This unique combination provides financial

support for the family of the deceased policyholder any time

before maturity and lump sum amount at the time of maturity

for the surviving policyholders.

LIC's New

Bima Bachat Money Back

LIC's New Bima Bachat is a participating non-linked savings

cum protection plan, where premium is paid in lump sum at

the outset of the policy. It is a money-back plan which

provides financial protection against death during the policy

term with the provision of payment of survival benefits at

specified durations during the policy term. In addition, on

maturity, the single premium shall be returned along with

52

Loyalty Addition,

LIC’s Anmol

Jeevan - II

Pure Risk/

Term Insurance

LIC’s Anmol Jeevan - II is a protection plan which provides

financial protection to the insured’s family in case of his/her

unfortunate demise. Maturity Benefit: Nil

LIC's Amulya

Jeevan - II

Pure Risk/

Term Insurance

LIC's Amulya Jeevan - II is a protection plan which provides

financial protection to the insured's family in case of his/her

unfortunate demise. Maturity Benefit: Nil

Jeevan Akshay

6 Pension Plan

It is an Immediate Annuity plan, which can be purchased by

paying a lump sum amount. The plan provides for annuity

payments of a stated amount throughout the life time of the

annuitant. Various options are available for the type and mode

of payment of annuities.

More details of the plans are available on Circular No. 66-2104-BS-MKTG-08 dated 22.02.2014 & on on

LIC Website (www.licindia.in).

The above plans are subject to change by IRDA from time to time. In due course, other products/ plans

related to Life Insurance shall be added by LIC of India.

2.GENERAL INSURANCE

Cir No 115/2004 BC & 114/2005 BC

Corporate Agency arrangement with United India Insurance Co Ltd (UIICO) since 2004

UIICO branches Pan India are mapped to Syndicate Bank Branches

Policies issued /renewed & claims settled at local Branches of UIICO

Following are the products offered through Corporate Agency

1 Fire/Stock/ Machinery/Building /All types

of Vehicles

Assets charged to the Bank have to insured

with a General Insurance Company.

Borrowers may be persuaded to obtain

insurance cover through UIICO, thus Bank

earning handsome commission.

2 Shop keeper’s Insurance & Burglary

3 Insurance against Electronic equipments

4 Uni-Home Care

5 Uni-Study Care policy All SyndVidya borrowers may be persuaded

to obtain the Policy.

6 SyndArogya Mediclaim Policy

Cross selling to customers of the Bank 7 Griha Raksha

8 Overseas Mediclaim policy

A) UNI-HOME CARE POLICY (Cir No 125/04 BC, 158/04 BC, 173/05 BC & 108/06 BC)

a) Provides insurance cover for risks up to ` 50.00 lacs against fire and allied perils covering

lightning, explosion/ implosion, air craft damage etc. to the building, the borrower against death

or injury due to accident to the extent of insured amount.

b) Insurance cover for more than ` 50.00 lacs may be obtained with specific request

c) Riot, Strike, Malicious and Terrorism damages are covered at extra premium.

d) Sum Insured: The borrower can obtain insurance cover for the ‘value of the building excluding

site value’ or ‘outstanding balance in his loan account’, whichever is higher, if the loan is for land

& building.

e) Premium: One time single premium for the tenure of the loan to be borne by the borrower.

Insurance premium can be loaded in ‘project cost’ for the loan.

53

f) Joint Borrowers: In case of housing loan availed by more than one borrower, the sum insured

available under the personal accident shall be distributed among the borrowers as per the liability

fixed by the Bank. In such cases, names of all the borrowers are to be mentioned in the schedule of

the policy with appropriate sum insured against each person for Personal Accident cover.

Branches can apportion the loan amount to the joint borrowers or split the total amount of loan

between the joint borrowers equally. Further, if branch wants the Personal Accident cover to be

given to one or more key borrowers who are the earning members by excluding other joint

borrowers, it can be done. The Branches shall ensure that total sum insured for all the joint

borrowers is equal to the original loan amount sanctioned or the present balance outstanding in the

case of existing loan accounts.

B) UNI-STUDY CARE POLICY: (Cir No 170/2008 BC)

a) Provides Personal accident Insurance cover to SyndVidya borrowers and parent/s / Guardians

b) As per IBA guidelines, all SyndVidya borrowers who have taken loan after 24.07.2008 are to be

insured along with Parent/s / Guardians. Option may be offered to the borrowers to obtain Personal

accident Insurance under ‘Uni-Study care Policy’ of UIICO or Life Insurance cover under

“SyndVidya MET Flexi Shield Plan” from PNB-MET Life Insurance Co Ltd.

c) Premiums have to be remitted to A/c No.04241010003960 of UIICO, Bangalore and proposal

form in Annexure 3 to Cir No 170/2008 BC (Modify the address) to: The Divisional Manager,

United India Insurance Company Ltd, Bancassurance Division, 2nd Floor, Indian Mutual Building ,

NR Square, BANGALORE-560002, Karnataka

d) Issue of Policies and Death Claim settlements will be done by the above office of UIICO.

C) SYND AROGYA FAMILY FLOATER HEALTH INSURANCE PLAN:

Cir No 8/05 BC, 11/06 BC, 91/06 BC, 101/07 BC & 139/08 BC

Product Features:

a) Mediclaim cum Personal Accident policy, with family floater advantage.

b) Mediclaim cover: Minimum ` 50, 000/- maximum up to ` 5.00 lacs.

c) No medical checkup required, but self declaration to be made.

d) Plan A – family size 1+3 (Account holder + spouse + Two dependent Children) Plan B – family size 1+5, (Dependent parents are also covered)

e) All account holders with family members, from 3 months to 65 years of age (entry age) are

eligible for coverage.

f) The Policy can be renewed up to 80 years of age if renewed continuously without break

g) Medical checkup reimbursement can be availed after 3 claims free years, up to 1% of average

sum insured.

h) Premium exempted under section 80(D) of Income Tax Act

i) Personal Accident Insurance claim: 100% sum assured for self, 50% for spouse, 20% for

children above 5 Yrs. of age & 10% in case of children below 5 Yrs. of age. Dependent parents

are not eligible for PA benefit.

Reimbursement of 50% of the premium paid by the employees / ex-employees of the Bank on the

policies taken in their names for insured amount up-to ` 1,00,000/- by HO SWD. (Cir No 3/2010 BC &

22/2011 BC)

54

3. GROUP TERM LIFE INSURANCE COVER OFFERED BY THE BANK

a) SYNDSURAKSHA: (Basic circular 25/2008/ BC. Latest Circular 16/2014 BC) Group Life Insurance Cover provided through LIC of India. The scheme is optional.

Offered to our Savings Bank account holders (optional).

Age 18 years and not over 59 years are eligible under the cover.

No Medical checkup, Low on Premium & High on benefits

The sum assured is ` 1,00,000/- in case of normal death and ` 2,00,000/- in case of accidental death.

Common date of renewal of all memberships will be on 10th January every year. Renewal premiums debited by

Corporate Office Insurance Division for all eligible enrolled members during the previous year (Branches should

not debit renewal premiums)

Death Claims settled by LIC of India on submission of claim form to Corporate Office, Insurance Division, as

Annexure V part A & Part B of Cir No 25/2008 BC by the Branch along with Death Certificate (original or

certified copy), attested copy of enrollment form & statement of account showing debit of premium to the

account, prior to the death of the insured person.

Branches should collect only the applicable premium and no other charges

Revised premium rates are as below. (Cir No 14/2013 BC).

Age Band Month of joining

Jan Feb Mar Apr May Jun Jul Aug Sep Oct Nov Dec

18 to 35 years 165 151 138 124 110 96 83 69 55 41 28 14

36 to 45 years 235 215 196 176 157 137 118 98 78 59 39 20

46 to 55 years 585 536 488 439 390 341 293 244 195 146 98 49

56 to 59 years 875 802 729 656 583 510 438 365 292 219 146 73

b) TATA – AIA Total Suraksha Plan(For Housing loan borrowers): Basic Circular No 277/11 BC:

Latest Circular 339/13BC) a) Group Life Cover provided byTATA- AIA to the lives of Housing Loan borrowers

b) Eligibility: Housing loan borrowers and/or co-borrowers/guarantors of the bank aged 18 to 55 years are

eligible. The scheme is optional.

c) Premium: One time premium for the entire period of loan. Premium rates depend upon the age of the

borrower/guarantor.

d) Maturity value: Nil, as this is pure term policy, there will not be any maturity value.

e) Life Insurance cover: Balance in Housing loan a/c of the insured person calculated on reducing balance

system.

c) SYNDVIDYA PNB-MET FLEXI SHIELD: EDUCATION LOAN PROTECTOR:

Basic Circular No 37/2012 Latest Circular 18/2014 BC a) Group Life Cover provided to Education Loan Borrowers through PNB MET Life Insurance Co Ltd

b) Eligibility: Students aged from 16 to 60 years, who have borrowed SyndVidya loans from the Bank &the

parents/guardians, who are co-borrowers aged up to 60 years are eligible. The scheme is optional.

c) Premium: One time premium for the entire period of loan. Premium rates depend upon age of the borrower /

co-borrower / guarantor.

d) Maturity value: Nil; as this is pure term policy, there will not be any maturity value

e) Life Insurance cover: Balance in Education loan a/c of the insured person calculated on the reducing

balance system.

d)MICRO INSURANCE

Basic Circular No 292/2011 BC Latest Circular 17/2014 BC

a) Group Life Cover provided to Financial Inclusion Customers presently through - Birla Sun Life Insurance Co

Ltd

b) Eligibility: All SB accounts opened under Bank’s Financial inclusion Plan under specified products like 221,

224, 225 etc.

c) Premium: Rs 15/- Per Annum

d) Life Insurance cover: Rs 25000/- payable to the nominee on death of the insured member. Insurance cover

starts from the date of debit of premium to the account of the member. The scheme is optional.

Maturity value: Nil: as this is pure term policy, there will not be any maturity value.

55

4. MUTUAL FUNDS:

Bank has signed MOU with following Nine AMCs, for distribution of their Mutual Fund Products,

through our Branches.

ICICI Prudential Asset management Co Ltd.

Reliance Capital Asset Management Co Ltd.

Birla Sunlife Asset Management Co Ltd.

HDFC Asset Management Co Ltd.

UTI Asset Management Co Ltd.

SBI Asset Management Co Ltd.

DSP BlackRock Investment Managers Pvt Ltd.

IDBI Asset Management Co Ltd.

Franklin Templeton Asset Management (India) Pvt Ltd.

Reference Circular No. 204-2012, 327-2012

A Mutual Fund is a trust that pools the savings of a number of investors who share a common

financial goal.

a) Advantages OF MUTUAL FUND Investment

Professional Management

Diversification

Convenient Administration

Return Potential

Low Costs

Liquidity

Transparency

Flexibility

Choice of schemes

Tax benefits

Well regulated

B) Types of Mutual Funds:

a) On the Basis of Scheme Structure:

Open Ended Schemes –

Are always open to investors.

Can buy or sell units on a continuous basis

Close Ended Schemes –

Have a lock in period.

May vary from 3 – 5 years, depending on scheme objective.

b) On the Basis of Asset Class in which the scheme invest

Equity Schemes: Equity Schemes primarily invests in shares. Suitable For Long Term

Investment

Can focus on individual sector or diversify across the sector

56

Certain Scheme Can Help Save Tax

Certain Scheme Invest In Global Markets

Debt Schemes: Aim To Add Stability To Your Equity Portfolio & Can Provide Stable

Returns.

Invest in interest bearing securities like Govt. & corporate bonds, money market

instruments & term deposits.

Some scheme provides easy liquidity suitable to park surplus cash for short term.

Some schemes provide investment opportunities across different time periods.

Some schemes try to benefit from changing interest rates.

Hybrid schemes: provide blend of both equity & debt ( Balance Fund or Monthly Income

Plans)

Invest in range of securities like stocks & bonds, depending upon the scheme objective

There are also schemes that allows you to invest in gold units.

C) Systematic Investment Plan (SIP) & Its Advantage:

SIP is a convenient way to accumulate wealth in a disciplined manner over a long-term period. It helps

you to invest fixed amount regularly in small installments and thereby build wealth over a period of

time.

Power of Compounding

Rupee Cost Averaging

Convenience and Regularity – Pay through ECS / Auto Debit / Standing Instructions

Disciplined approach towards investment ]

D) ELSS (Equity Linked Savings Scheme) & its Advantages

Invests in : Equity and equity related securities.

Section 80 C : Tax benefits on investment up to ` 1.00 Lacs.

Lock in Period : 3 years ( Lowest in all Tax Saving Instruments)

Returns : High Potential

Dividend : Tax Free

Tax Liability : Nil as redemption happens after 3 Years.

SIP : Flexibility to invest in small amounts through SIP

5. CASH MANAGEMENT SERVICES AND CAPITAL MARKET SERVICES PRODUCTS:

A) CASH MANAGEMENT SERVICES: Bank offers a range of Products and Services, as stated

below, to meet Cash Management Services requirements of Corporates, either directly or through their

Bankers:

Sl.

No

Product /

Services Features

1

Centralized

Cheque

Processing

Cheques issued in favour of Corporate drawn on various branches of our

Bank will be centrally processed

2 Cash

Collection

Small Value cash deposits by customers of corporate clients at various

branches across the country, into the current account of the Corporate.

3 Direct Debits

based on

This facility meets the small value bulk, recurring collections through

mandates of customers of corporate clients who have bank account with

57

Mandate Syndicate Bank. Mandates are centrally processed and registered.

Transactions are processed periodically on the basis of registered mandates.

4

DD/DW

Drawing

Arrangement

Demand Drafts / Payable AT PAR cheques issued by the CMS Clients

(Corporate and Correspondent Bank). The DD issuance data is uploaded

centrally in CBS and instruments paid by branches using DW module in

CBS

5 Bulk NEFT

Payments

Electronic Channels to meet high value, small value bulk disbursements.

This meets the corporate payment requirements such as statutory payments,

salary disbursements, all other remittances etc. Single amount funding

received from the Corporates for credit to various beneficiaries having

accounts in various bank branches across the country.

6

Remote

Demand Draft

Printing

Pre-funding is done by the corporate clients, with advise to issue Demand

Draft to a specified entity by any of our remote branches

7

Direct Credit

by Fund

Transfer

This offers the management of payables centrally in respect of supply chain

payments, overseas remittances, salary payments, statutory payments where

beneficiaries happen to be our existing account holders

B) CAPITAL MARKET SERVICES: The following activities are conducted under Capital Market

Services:

1. Merchant Bankers

2. Bankers to an Issue

3. Depository Participant Services

4. Debenture Trustee

I. MERCHANT BANKING:

Category – I Merchant Banker, as per SEBI certificate of registration, is permitted:

1. To carry on any activity of the Issue Management, which will, inter-alia, consist of preparation of

prospectus and other information relating to the issue, determining financial structure, tie-up of

financiers, final allotment and refund of excess application money.

2. To act as Investment Adviser.

3. To act as Manager, Consultant or Advisor to any Issue, including Corporate Advisory Services.

4. To act as Consultant or Advisor.

II. BANKERS TO AN ISSUE:

“Banker to an issue” means carrying on all or any of the following activities:

Acceptance of application and application monies

Acceptance of allotment or call monies

Refund of application monies

Payment of dividend or interest warrants

Bank may carry on the activity of “Banker to Issue” based on the existing relationship with the body

corporate, the arrangement of funding, amount & duration of float available and the avenues for

deployment of such ultra short tenor funds, the number of location the services will be required, the

income to be generated etc. Bank may also carry on the activity on behalf of a scheduled commercial

bank, which is holding a valid certificate from SEBI to act as Bankers to an Issue.

Application Supported by Blocked Amount (ASBA)

ASBA (Applications Supported by Blocked Amount) is a Simple, Safe and Smart way for customers to

apply in an eligible Initial Public Offer / Follow on Public Offer / Rights Issue. All branches of our

Bank are enabled for offering ASBA facility to our CASA customers.

Eligibility Conditions for investor through ASBA:

58

Investor should maintain a Savings Bank or Current Account with any branch of

SyndicateBank:

Investor should have Demat account with any of the Depository Participant (DP)

Investor should have Permanent Account Number (PAN).

Investor should have sufficient clear credit balance in the Savings Bank or Current account

for application money.

Multiple ASBA applications by a single investor are not allowed whereas an Investor can make 5

applications from a single bank account in the name of different persons. (Detailed BC Circular No.

358-2011-BC-MKTG-12)

ASBA - Guidelines regarding processing of ASBA applications received at our branches:

Branch shall have at least one Supervisor and one Teller user IDs created for assessing ASBA

application. The user access rights form is available at \\172.18.200.222\d$\ASBA folder. The same

has to be filled in and sent to CMS Branch, Mumbai by fax/scanned copy by IP for user creation.

ASBA login page can be accessed at the following URL on the network in the CBS node:

http://172.16.1.32:9081/asbaWeb/

III. DEPOSITORY PARTICIPANT SERVICES:

(i) Demat Services

Bank offers Demat services from January 16, 2008 with Central Depository Services (India)

Limited (CDSL)

61 Branches across country enabled for Demat Services under centralized operations

Demat Account opening

Dematerialization of Physical Securities

Off Market and Inter Depository Transfer of Securities

Transmission of Securities

Pledge / Un-pledging

Re-materialization / Redemption of Electronic Holdings

KYC updating with KRA

(Detailed BC Circular No. 103-2012-BC-MKTG-02)

(ii) Synd e-Trade (On-Line-Trading facility with Three-in-one Account)

Bank has tied up with one among the leading stock broking players in India M/s Asit C Mehta

Investment Interrmediates Ltd (ACMIIL) for offering Synd e-Trade - Online Share Trading

Facility (3 in 1 Account) to SyndicateBank customers who invest or trade in securities.

Resident Individuals can buy/sell equity shares through NSE/BSE, on an online basis using

Synd e-Trade link on Banks website – www.syndicatebank.in

Customers should have following three accounts for Synd e-Trade facility:

Current or Savings account with any branch of SyndicateBank

Demat account with SyndicateBank

Online trading account with Broker partner. I.e. M/s Asit C Mehta Investment

Interrmediates Ltd (ACMIIL).

Above three accounts will be integrated under 3 in 1 facility. Process is fully automated wherein Bank

CBS systems and Bank Demat systems are integrated with Broker Systems.

Detailed BC Circular No: 1) 103-2012-BC-MKTG-02

2) 355-2011-BC-MKTG-11

IV. DEBENTURE TRUSTEE:

Debenture Trustee provides services with regard to Trusteeship business as:

Debenture/ Bond Trustee

Security Trustee

Share Trustee

59

In terms of SEBI guidelines, all Debenture Issues (Public/ Rights) of the Companies with the maturity

period exceeding 18 months are required to have “Debenture Trustee” and its name must be stated in

the Prospectus of the Issue. A Debenture Trustee is appointed to represent and protect the interests of

Debenture/ Bond holders. The necessity of creation of Debenture Trust is to organize the large number

of Debenture Holders and facilitate interaction by the Companies issuing debentures with a single

entity, rather than individual debenture holders

To act as Debenture Trustee, the entity should either be a scheduled bank carrying on commercial

activity, a public financial institution, an insurance company, or a body corporate. The entity should be

registered with SEBI to act as a debenture trustee

Bank is registered with SEBI for carrying on Debenture Trustee activities and has been granted

Permanent Registration by SEBI vide Registration Number IND000000025 dated 16.11.2011

6. NATIONAL PENSION SYSTEM (NPS)

Bank is registered as a “Point of Presence” with PFRDA (Pension Fund Regulatory & Development

Authority] under “All Citizens of India” module of National Pension System.

2052 branches are registered as Point of Presence – Service Provider (POP-SP)

Bank is also appointed as Aggregator under NPS

Pension Fund Regulatory and Development Authority (PFRDA) has introduced following two

Schemes:

(i) NPS Regular for the Organised Sector

(ii) NPS lite/ Swavalambhan Scheme for the unorganized Sector.

(Detailed BC Circular No. 265-2013-BC-MKTG-05)

60

IV ALTERNATE DELIVERY CHANNEL

I. SYNDICATE BANK GLOBAL DEBIT CARD,

Syndicate Bank Global Debit Card, packed with RuPay/VISA/Maestro Power, brings the convenience

of accessing the savings /current account ANY TIME ANY WHERE GLOBALLY, in a safe, secured

and convenient way.

Features of the Syndicate Bank Global Debit Card:

Card No Unique 16-digit card number is printed on the front side.

Name The name appears below the number for personalized card only.

Validity thru This indicates the month and the year up to which the Debit Card would

be valid.

<Mark on left side While using card in any ATM, the card is to be inserted in the direction of

this arrow.

Electronic use only The card is acceptable only for on-line transactions through ATMs , EDC

machine at MEs and Internet portals

Black strip outside This is a magnetic strip containing coded information for the security of

card and needs special handling. The card should not be placed in an area,

where there is continuous magnetic field, such as on top of the TV set or

near any electrical appliance.

Signature panel Paper strip below the magnetic strip for putting the signature. Customers

shall sign immediately on receipt of the card.

CVV No. To the right of signature panel, 3 digit number, which is to be used for e-

commerce transactions along with VbV or Master Secure Password.

Card Activation:

Syndicate Bank Global Debit Card is ready for use at the time of delivery. However, the Instant (Non-

personalized without the name printed) Card will be activated within two working days after it is

delivered to the customer.

PIN Mailer: A cover containing sealed and secret 4 digits Personal Identification Number (PIN) generated for card

will be delivered by Branch, to enable access to the account in any ATM/POS.

Usage:

Three accounts with same Customer ID (of same Branch or different branches) is linked to debit

card. However, only Primary Account would be assessed for transactions at other Bank ATMs and

Merchant Establishments (MEs).

Debit Card can be performed up to the available balance in the account at ATMs, and/or MEs,

subject to following limits (or equivalent foreign currency abroad.)

Transaction Instant Personalised Gold

Minimum amount per transaction ` 100 100

Maximum amount per transaction ` 20,000 20,000

Maximum amount per day ` 25,000 ATM: 25,000

POS: 75,000

Loss or theft of Card: In case card is lost/stolen or the card has been unauthorized copied, the same is to be notified with

the Bank Immediately. 24 hour customer service 1800 425 0585/9483522433 to notify the

loss/theft/misuse of the card for blocking further operations may be utilised for this purpose.

61

Cardholder can notify the loss/theft of card through fax at 080 2663 9970 or e mail at

cardcentre@syndicatebank.co.in or dcc@syndicatebank.co.in (or the Card Issuing Branch during

office hours only). The card will be hot listed, after verification, to prevent any further misuse.

Schedule of charges:

Sl. No Activity Charges for

Instant

Cards

Charges for

Gold

personalised

Cards

01 Entry fee for issue of new card Nil ` 250 + ST

02 Annual/Renewal fees per card 100+ST ` 250 + ST

03 Entry/Annual fee for add-on cards Nil ` 250 + ST

04 Transaction charges at our ATMs Nil

05* Cash withdrawal charges at other Bank –

a. ATMs in India

b. ATMs outside India

Per transaction

` 20/-

` 125/-+ST

06* Balance inquiry - ATMs of other Banks in India ` 10/-

07* Balance inquiry - Network ATMs outside India ` 30/-+ ST

08 Currency conversion charges for International Txns 2% of the amount of Txn

09 Transaction at petrol pumps payable to Acquiring

Bank 2.5% of the amount (Minimum ` 10/-)

10 Transaction for Railway Reservation/ cancellation etc. As claimed by Acquirer Bank +

surcharge

11 Issue of Replacement card- lost/mutilated card ` 100/-* _ ST

12 Issue of Re-pin of Debit card ` 50/-* + ST

13 Charge slip retrieval charges ` 100/-*+ST

*The first five financial and non-financial transactions in other Banks ATMs are free of charges every

Month for our SB account holders. The sixth transaction will be charged as per SL. No. 05 to 07.

Important Circulars:

Sl

No

Circular No Date Subject

312/2011/BC/MKT 15.11.2011 Syndicate Bank Global Debit Cards

62

II. SYNDICATE BANK GLOBAL CREDIT CARD (SBGCC) Our Bank launched Syndicate Bank Global Credit Cards on 20.10.2003 in association with VISA,

having following variants and features:

01. SALIENT FEATURES

VARIANTS VISA CLASSIC & GOLD CARD

Add On Cards Any number of Add-on Cards can be obtained in the names of

immediate major family members. However, the liability under all these

cards shall not exceed the credit limit sanctioned for the Primary Card.

Free Credit 20 - 50 days (If last bill is paid in full & there is no cash withdrawal

during billing cycle)

Revolving Credit Facility With Minimum Payment of 10% for Public & 20% for Staff or ` 100/-,

whichever is higher

Reward Points 1 point - for every ` 200 spend for public; ` 100 for staff

Redemption of Reward

Points

Encashment by credit to Credit Card a/c in multiples of 500 points

Late Payment Fee ` 200/- for relevant month

Acceptability Both On-line & Off-line

MCC Limits Internal security limits to minimize misuse, if card is lost. The limit can

be got removed for any specific transaction/ period or permanently at

the written request of Card Holder

Usage at/ thro ATMs, POS, e-commerce

Billing Date 20th of every month

Payment Due Date 10th of succeeding month.

Immediate in case of previous month’s default

Card Blocking For continuous default for 2 billing cycles. Auto activation on payment

of overdues before next Billing Statement

Card Hotlisting For continuous default for 3 billing cycles

02. SCHEDULE OF CHARGES

ENTRANCE & RENEWAL FEES (AMOUNT IN `)

Fee Structure Classic Card Gold Card

Primary Add On Primary Add On

Entrance Fee NIL NIL NIL NIL

Renewal Fee 300 150 500 250

The Renewal Fee shall be levied in advance to the Credit Cardholder’s account in the anniversary

month of issue of the card, if the card becomes irregular/ overdue due to non-payment. No separate

notices are issued in this regard.

DESCRIPTION OF CHARGES

If Total Payment (TPD) is paid

within Payment Due Date (PDD)

NIL

63

If Minimum Payment Due (MPD)

is paid within PDD

2.00% p.m. (24.00% p.a. calculated monthly) for all

transactions from date of each transaction

If no amount or less than MPD is paid

within PDD

2.50% p.m. (30.00% p.a. calculated monthly) for all

transactions from the date of transaction

Cash advance (withdrawal) fee

SyndicateBank’s ATMs 2% on advance amount (Minimum: ` 50/-per

transaction) + Finance (Service) Charges as detailed

above

Other Bank’s ATMs in India 2.5% on advance amount (Minimum: ` 100/- per

transaction)+Finance (Service) Charges as detailed

above

ATMs outside India 2.5% on advance amount (Minimum: ` 200/- per

transaction)+Finance (Service) Charges as detailed

above

OTHER FEES

Mark Up Fee on Int’l Transactions 3% of the transaction amount + Service Tax

Over the Credit Limit Usage,

when o/s exceeds credit limit ` 100/- for each occasion

Balance Enquiry Charges at ATMs under

VISA network in India ` 15/- + Service Tax

Balance Enquiry Charges at ATMs under

VISA network outside India ` 30/- + Service Tax

Limit Enhancement Charges ` 200/- for each occasion

Retrieval of Charge Slip ` 150/- or actual charges, whichever is higher

Cheque Bouncing Charges ` 200/- per instrument

Late Payment Fee if MPD is not

paid by PDD ` 200/- for each month

Transactions at Petrol Pumps 2.50% of transaction amount (Minimum ` 10/-) or

Actual charges claimed by Acquirer Bank

Replacement Card issue charges

in case of lost, stolen or damaged-

in case of hot listed Cards due to default

in payment-

` 100/-

` 200/-

PIN Replacement ` 50/-

Duplicate Billing Statement

beyond three months ` 50/-

Service Tax As applicable

04. ROUND THE CLOCK FRIENDLY HELP LINE:

A 24 Hour Customer Friendly Help Line [Toll Free # 1800 22 5092 OR STD # 022-4042 6003

(chargeable to Caller)] for direct interaction with the Call Centre Executives at the convenience of the

Cardholders. The Caller is identified through dynamic quizzing, before providing any information.

05. SOME IMPORTANT TIPS:

LOSS/ THEFT OF CARDS: Get your Credit Card hotlisted immediately in case of loss/ theft

through our 24 Hour Help Line to prevent any misuse. We recommend our Cardholders to file a

police complaint in their own interest immediately after the Credit Card is lost, which would be

required in case of misuse of such cards. However, the cardholder has the option of seeking

replacement card in case of lost/stolen card without filing of police complaint with a clear

undertaking that the Cardholder would be liable for any misuse of lost/stolen card till the

loss/theft is notified to the Bank.

64

CHANGE IN MAILING ADDRESS: Intimate the change in your mailing address, phone

numbers, mobile number, e-mail address by contacting Helpline Number or to Card Centre in

writing.

CONSEQUENCES OF NON PAYMENT:

Non-payment of ‘Minimum Payment Due’ by ‘Payment Due Date’ attracts higher finance

charges at 2.50% p.m. (30.00% p.a.) calculated on monthly basis for all the transactions from

the date of each transaction.

Non-payment of ‘Minimum Payment Due’ amount for two billing cycles leads to temporary

suspension (card blocking) of your card(s) operations.

Non-payment of ‘Minimum Payment Due’ amount for three billing cycles leads to

HOTLISTING of Card(s).

GRIEVANCE REDRESSAL: The Cardholder, if not satisfied with the response received on

the enquiries, can address the grievance for redressal (by intimating contact number & e-mail id,

if any) to-

Assistant General Manager

SyndicateBank: Corporate Office : Card Centre

No. 69, I floor, 9thMain Road, Jayanagar 3rdBlock

Bangalore - 560011 (INDIA)

E-mail: cardcentre@syndicatebank.co.in

Phones: 080-2663 9960; Fax: 2663 9970

Important Circulars:

Sl

No

Circular No Date Subject

01 006/2005/BC/CCC 12.01.2005 SBGCC master circular

02 222/2005/BC/CRD 01.12.2005 Transfer of NPAs to branches

03 253/2005/BC/CRD 31.12.2005 Modifications

04 071/2006/BC/CRD 15.04.2006 Modifications/ Clarifications

05 136/2006/BC/CRD 24.06.2006 Improving card base

06 140/2006/BC/CRD 28.06.2006 settlement policy for credit card dues

07 231/2006/BC/CRD 11.10.2006 Designation of all branches to issue Cards

08 237/2006/BC/CRD 23.10.2006 withdrawal of free personnel accident cover

09 027/2007/BC/RBD 27.01.2007 modification / improvement

10 238/2007/BC/RBD 25.10.2007 Cash back promotion for flights/Hotel Booking

11 122/2008/BC/RBD 28.05.2008 Payment of dues through internet banking

12 176/2008/BC/DIT 31.07.2008 Maintenance of Credit Card NPAs in CBS

13 217/2008/BC/RBD 02.09.2008 modification / improvement

14 191/2011/BC/MKT 11.07.2011 Recovery Policy for Credit Card NPAs

III. POS ACQUIRING BUSINESS

POS-(EDC) [Point of Sale-(Electronic Data Capture)] acquiring activity involves deploying Point of

Sale terminals at Merchant Establishments for accepting Debit Cards/Credit Cards/Pre-paid

Cards/Charge Cards by Merchant Establishments towards payment of goods and services. The Merchant

acquiring business though POS installation is a successful channel of earning non-interest income, with

very high scope of canvassing other Banking products for the Banks that not only prevents customer(

both current account holders as well as floating customers) attrition to other Banks.

The Merchant acquiring activity through POS (EDC) rests on the principle of Merchant Discount Rate

(MDR) [also known as Merchant Service Fee (MSF) or Merchant Service Charge (MSC)] to be charged

to the Merchant Establishments depending on the transaction value and monthly business turnover for

the services rendered. A share of fixed percentage of the Merchant discount rate (MDR/MSF/MSC)

65

charged to the Merchant Establishment needs to be shared with the Card-issuing Bank whose Cards are

swiped on our Banks POS-(EDC) terminals deployed at the Merchant Establishments depending on the

type of the Card from the issuer known as interchange. The higher the brand name (Platinum/ Global

platinum/ premium gold etc.) the higher is the interchange.

Procedure for deploying of EDC terminals:

01. The Branches shall obtain request of the Merchant desirous of having POS-EDC terminal in the

Merchant Enrolment Form (MEF) and forward the same to Card Centre with Branch

recommendations.

02. Where the Merchant /customer are not fulfilling the eligibility criteria, the request has to be

recommended by respective Regional Office and forwarded to Card Centre.

03. On receipt of the format,( Merchant Establishment Application form) Card Centre will verify the

credentials to determine the MDR eligibility recommended by the branch as per BC circular-298/13,

based on the details furnished in the Merchant Enrolment Form. On approval/sanction of the

enrollment of the Merchant Establishment on the recommended MDR, the Branch is informed for

executing the agreement in the format mentioned in Annexure III of the circular 246/2010/BC and

installation & training of POS (EDC) is undertaken at the Merchant Establishment outlet..

04. The Original of the agreement should be retained at Branch level under joint custody and Xerox

copy of the same duly certified by the Branch Head on all pages should be forwarded to Card

Centre, Bangalore.

05. The Bank is presently having arrangements with M/s BTI Payments Pvt. Ltd for deployment /

managing POS machine on Fixed Rental Model (OPEX model) in terms of Agreement dated

25/11/2013.

Process of settlement of Funds & MIS to Merchant:

The transactions made by the Merchant through the POS-EDC terminal should be completed by a

process known as Batch closing at the end of the day on a daily basis. All the transactions amount done

prior to settlement of batch at the close of the business at the M.E. outlet will be settled/paid the next

day only if the Merchants close the days Batch and transactions are found to be in order. The credits are

settled on next working day and the Merchant Establishment account is credited centrally from Card

Centre through GEFU upload.

The daily transaction details with the net amount settled to the Merchants account is sent by email to the

email-id provided by the Merchant if the transactions done are found to be in order after risk mitigation

on the transaction analysis.

MDR ON DEBIT CARDS SHALL BE CHARGED AS MANDATED BY RBI, AS UNDER

CRITERION MDR / MSF Fee (%)

1. Debit Card Transaction up to ` 2,000/- 0.75

2. Debit Card Transaction above ` 2,000/- 1.00

Merchant Discount Rates - Floor Limits for Credit Cards

Existing MDR Rates (Excl. Taxes) Revised MDR Rates (Excl. Taxes)

Average monthly

turnover(` lacs)

Minimum MDR (%) Average monthly

turnover(` lacs)

Minimum MDR

%

Customers Non customers Common for all

50 & above 1.25 1.50 50 & above 1.25

35 to < 50 1.30 1.75 35 to < 50 1.30

20 to < 35 1.40 20 to < 35 1.40

16 to < 20 1.50

2.00

12 to < 20 1.50

12 to < 16 1.60 5 to 12 1.75

11 to < 12 1.65 2 to < 5 2.00

8 to < 11 1.70 2.25 < 2 2.25

66

5 to < 8 2.00

3 to < 5 2.25 3.00

2 to < 3 2.50

Minimum monthly

charge # (`)

600 1500 Minimum

monthly charge #

(`)

PSTN – 600

GRPS – 1200

In store- 1500

# If ME fails to achieve minimum assured turnover through our POS, Bank will recover Minimum

Monthly Charges for respective terminal minus monthly income earned through POS Terminal.

Following Powers have been delegated for further reduction in MDR on merits of each proposal on

the specific recommendation of concerned Field General Manager Offices:

Sanctioning Authority Maximum Reduction in MDR as per

Monthly Turnover Slab.

General Manager in-charge of Card Centre 20% of Card Rate

Executive Director 30% of Card Rate

Chairman & Managing Director More than 30% of Card Rate

It is further clarified that all the POS (EDC) terminals deployed by the Bank are capable of accepting all

types of Payment Cards (Credit Cards, Debit Cards, Prepaid Cards, Gift Cards, Petro Cards, etc) issued

by all banks in association with NPCI (RuPay Cards), VISA, MasterCard, Maestro Cards and

DISCOVER Cards.

Arrangement with City Union Bank, Lakshmi Vilas Bank & Dhanalakshmi Bank.

The Bank also has entered into a Tripartite agreement allowing M/s BTI payments Pvt. Ltd. to route

MasterCard transaction of City Union Bank, Lakshmi Vilas Bank and Dhanalakshmi Bank, as they are

not members, which benefits fee income @10 basis points along with fixed rental @ ` 60/- per month

per terminal as additional income to our Bank.

Circulars Issued:

246/2010/-BC-DIT-02 dated 17/09/2010.

298-2013-BC dated 09.11.2013

361/2013/BC dated 26-12-2013

IV. INTERNET BANKING

1. Login Password :

Features:

Branches have been provided pre-printed Instant Login passwords. The Instant Login

passwords are issued instantaneously to the customer as and when requested. The login

password can be activated within one working day.

Action to be taken by branch :

(i) To take written request from the customers for issuance of Login Password

(ii) To verify that the customer’s details like First name/Last Name (without any special

characters), Mobile no. (prefix with 91 in telex field), Valid Email ID are properly

updated in Customer Master.

(iii) To enter the password details in Fast Path CIM40 option of the CBS.

(iv) Once the password details are entered successfully, the said password may be delivered

to the customer and advised him to try to login after one working day.

(v) If Instant login password stationery is exhausted, the branch may send request to DIT

through Scan copy on node no. 172.18.200.210 or send FAX to 080-25705800.

67

2. RSA SyndProtect Transaction Password :

Features :

(i) RSA SecureID virtual password is a highly secured password and the bank has

launched this product to provide high security to the Internet Banking customers and

also to protect them from any phishing attack.

(ii) The customer can opt either for Software token or Hardware token. The Software

token is free of cost whereas the charges fixed by the bank for Hardware token are `

1400.

(iii) The software token can be issued for Desktop, Laptop, Android Mobile, Winphone,

iphone etc. DIT will send the software token file and installation guide to the customer

directly on their registered email ID. Average time taken by DIT for providing this password is

2 working days.

Action to be taken by branch :

(i) Take written request from the customer for issuance of Transaction password

(ii) To verify that the EMail ID updated in the customer master is a valid EMail ID of the

customer or else mail sent by the bank would not reach to the customer.

(iii) Branch need to enter the necessary details in CIM55 option of the CBS.

Detailed guidelines about SyndProtect SecureID password is available at

\\172.18.200.222\d$\SyndProtect - folder.

3. Fixing of Per day transaction limit :

Features:

The customers need to have per day transaction limits for doing online transactions. The various

types of transaction limits and the default limit amount is –

Fund Transfer (Own Accounts) ` 100000/-

3rd Party (Syndicate Bank Accounts) – ` 10000/-

NEFT (Other bank Accounts ) – Nil

Bill Payment – ` 25000/-

These limits are given to the Sole Owner / Proprietorship concern customers at the time of

issuance of Internet Banking Passwords.

Action to be taken by branch :

(i) If any of the default limit is to be enhanced (upto ` 1.00 lakh), the branches may send

such requests using the URL http://172.18.200.58.

(ii) If the limit request is more than ` 1.00 lakh, the branches should firstly issue

SyndProtect password to the customer and then send request to DIT with the

recommendation of their RO.

V. SMS BANKING

1. SMS Request Registration :

Features:

The bank is presently providing SMS alert facilities for

(i) Balance Alerts,

(ii) Debit Alerts,

(iii) Credit Alerts and

(iv) Overdraft Alerts to the customers,

If any customer wish to avail SMS facility and charges of ` 15/- per quarter (in advance) will be

applicable for availing this facility.

68

The customers who have registered for above referred SMS alerts facility, would get the SMS

alerts on following occasions – a. Balance Alert - As and when there is any change in the account balance, the Balance alert

would be sent to the customer on next day morning.

b. Debit / Credit Alerts - As and when there is any transaction (debit or credit) in the account

of ` 10000 or above, respective Debit Alert/ Credit Alert would be sent to the customer

immediately after transaction.

c. Overdraft Alert - As and when the account gets overdrawn, the Overdraft Alert would be

sent to the customer.

Apart from the above, the customer will get transaction alerts irrespective of amount of

transaction, in respect of the following types of transactions, if the mobile no. of the customer

is updated properly in customer master. a. Amount withdrawn using ATM card.

b. POS transaction done using Debit Card / Credit Card.

Action to be taken by branch : (i) Take written request from the customer who wish to have SMS Alerts facility.

(ii) Update mobile no. of the customer in the Telex field of the customer prefix with “91”

without any “+” or “-“sign or space.

(iii) Enter such requests using the URL http://172.18.200.58. (iv) Once the SMS request is

registered, the customer will start getting SMS alerts from next day onwards as per the

criteria given above.

2. SMS De-Registration Request :

The branches can send SMS De-Registration requests using the URL http://172.18.200.58.

However, since the bank is collecting SMS charges in advance for each of the quarter, such de-

registration request would be executed in the last week of the respective quarter.

VI. MISSED CALL BANKING

Features:

Through this facility, the customers can get balance of their CASA account instantaneously on his

registered Mobile No. after making a missed call to 09664552255, provided he has registered

himself for availing Missed Call Banking.

How to avail this facility :

1. Customer should firstly Register himself for Missed Call Banking by sending following SMS to

09664552255 from the Mobile Number available in Bank’s Core Banking System

SREG <Cust-ID>

2. Customer will get a confirmation Message for the above step

(In the Bank’s System, the latest CASA Account-No. will be registered as the Default

Account-No. for Missed Call Banking) 3. Once confirmation is received, Customer can give a call to 09664552255

a. The call made will get automatically cut after one or two rings.

b. Customer will then receive an SMS mentioning the outstanding balance for the Default

Account-No.

4. If the Customer wants to change the Default Account-No., an SMS can be sent to 09664552255

with the below format –

SACC <CustID> <Account-No>

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VII. MOBILE BANKING

1. Introduction to Mobile banking

In addition to existing delivery channels like ATM, Internet Banking, SMS Banking, our Bank

has introduced Mobile banking from 10th May, 2011.

Through Mobile Banking customer can do banking transactions like

Balance Enquiry

viewing mini statement of account

Intra/Inter Bank fund transfer (IMPS)

Cheque book request and

Value added services like Mobile Talktime top up and DTH top up (will be introduced

shortly).

There are 3 types of platforms through which mobile banking can be used. They are

1.SMS/IVR 2. Downloaded Application 3. National Unified USSD (NUUP).

For SMS/IVR mode, any type of mobile handset can be used. For Downloaded Application

mode, customer’s handset should support JAVA or Android or Windows or Iphone and must

have GPRS settings enabled. Customers who are using BSNL/MTNL SIM can use NUUP

platform.

A list of Java enabled handsets which can be used for downloading Application is kept in our

website (www.syndicatebank.in) for our customer use and also at \\172.18.200.222\d$\mobile

banking folder for our branches use. There is no restriction on type of handset if handset is

running on Android/windows/iOS operating system.

1.1. Difference between SMS Banking and Mobile Banking:

Details For SMS Banking For Mobile Banking

Registration

Screen

CIM09 ( telex/ handphone field) CIM78

Format for

entering mobile

number

Mobile number to be prefixed

with ‘91’ if it is a domestic

phone.

Example: 911234567890

Mobile number to be prefixed

with 00+country code if it is a

overseas number.

Example: 00+country code +

1234567890

Mobile number should not be

prefixed with ‘91’ or ‘0’ or ‘+’.

Only domestic phone numbers are

eligible for mobile banking facility.

How many

accounts can be

linked to same

Mobile number

All CASA accounts of the

customer can be given.

Maximum of Two accounts

provided both the accounts are

opened under the same customer

ID. Same mobile number should

not be linked to accounts under

different customer IDs.

2 What is MPIN , MMID and IMPS: 2.1 Mobile Personal Identification Number (MPIN) is a 4 digit number which will be

generated by CO:DIT on successful registration of customer mobile number for mobile

banking. MPIN will be sent to the branch in a sealed MPIN MAILER. Customer needs

to change this MPIN on receipt before using mobile banking for the first time. MPIN is

required to be entered by the customer at the time of initiating each Mobile Banking

transactions.

70

2.2 Mobile Money Identifier (MMID) is a 7 digit number which will be generated by the

mobile banking software on successful registration of customer account. If a customer

has more than one registered accounts for mobile banking, then each account will have

different MMID. To know the MMID, customer should type MMID and send SMS

to 9870900876. System will send a reply SMS containing MMID of all the registered

accounts for the customer.

2.3 Immediate Payment Service (IMPS) is a service provided by National Payments

Corporation of India (NPCI) to facilitate fund transfers across accounts of member

banks through mobile banking. Our Bank has also availed this service to provide our

customers the facility of Inter Bank fund transfer through mobile banking.

VIII. UTILITY BILL PAYMENT/ONLINE SHOPPING Through our payment gateway arrangement:

Currently, Bank has tie-up arrangement with CC Avenue & Bill Desk (payment gateway service

providers) for online payment of utility bills.

Customers are required to log onto our site www.syndicatebank.in and click on online shopping and

select either CC Avenue or Bill desk and put through their transactions.

Help Desk: 172.18.200.210

IX. FUNDS TRANSFER/REMITTANCE FACILITY: FASTER, SAFE, SECURE & COST

EFFECTIVE

i) National Electronic Funds Transfer (NEFT) System

National Electronic Funds Transfer is a nation wide transfer of funds from any bank branch to any

other bank branch.

The beneficiary gets the credit on the same day or the next day depending on the time of settlement.

FREE (no service charge) for remittances upto ` 1.00 lac

Any amount can be remitted

Help Desk: 172.18.200.74 or 080-25705783.

ii) Real Time Gross Settlement (RTGS System) –SYND INSTANT

For transfer of funds on real time basis.

It is a remittance solution offered to both corporate customers and individual customers for transfer

of funds from their accounts to customers of other bank branches, which are RTGS, enabled.

At present customer transaction of ` 2.00 lakh and above are allowed under RTGS.

Help Desk: 172.24.240.42/43 or phone 022- 22653157

iii) e-payment of Advance Tax (online tax payment) is mandatory from 01.04.2008 for

All Corporates

All persons whose accounts are audited u/s 44AB

Pay taxes (Direct & Indirect Taxes) through select Branches as well as On-line

Income Tax

Corporate Tax

Service tax Commercial Tax for Delhi ( VAT or CST) only On-line. Off-line mode is disabled by the Govt.

Department.

Pay Karnataka VAT and Maharashtra VAT on-line.

To pay online customer have to log onto:www.syndicatebank.in > e-banking > e-payment > pay

direct tax online.

Payment towards Public Provident Fund (PPF): Through Branches (Off-line mode).

71

V. PRIORITY SECTOR ADVANCES:

RETAIL PRODUCTS – PSCD

1. SYNDICATE KISAN CREDIT CARD (SKCC)

Purpose

A single window credit facility for providing adequate and timely credit to farmers for

meeting their cultivation and other requirements, as indicated below:

a. To meet the short term credit requirements for cultivation of crops.

b. Post harvest expenses.

c. Consumption requirement of farmer household.

d. Working capital requirement for maintenance of farm assets and activities allied to

agriculture, like dairy animals, inland fishery etc.,

Eligibility I. All farmers- Individuals/ Joint borrowers who are owner cultivators.

II. Tenant farmers, Oral lessees & Share croppers.

III. SHGs or Joint Liability Groups of farmers including tenant farmers, share croppers

etc.

Features

► Following procedure shall be adopted for fixation of limit under SKCC.

A. Farmers raising single crop in a year:

Limit for the first year:

Limit for cost of cultivation: Scale of finance (as decided by the District Level

Technical Committee) for the crop proposed to be cultivated multiplied by the

extent of area cultivated.

After arriving at the limit for cultivation of crop as above, 10% of the limit shall be

added towards post-harvest/ household/ consumption requirements of the farmers.

20% of the limit shall be added towards expenses relating to repairs and

maintenance of farm assets, crop insurance, premium for Personal Accident

Insurance Scheme (PAIS) and asset insurance.

All the above will form the limit for the first year.

Limit for second and subsequent years:

The limit arrived at as above for the first year shall be taken as the basis for fixation

of limits from 2nd year to 5th year.

In order to take care of the increase in Scale of finance/ cost escalation, 10% of the

limit fixed for the first year shall be added to the first year limit for arriving at the

limit for second year.

Similar procedure shall be adopted for arriving at the limit for 3rd, 4th and 5th year.

B. Farmers raising multiple crops in a year:

Limit for the first and subsequent years:

The limit for first year shall be arrived at by following the procedure as prescribed

above for farmers raising single crop in a year, depending upon the crops cultivated

as per proposed cropping pattern.

10% of the first year limit shall be added to the first year limit towards cost

escalation/increase in Scale of finance for arriving at the second year limit.

Similar procedure shall be adopted for arriving at the limit for successive years (3rd,

4th and 5th).

In this method, it is assumed that the farmers adopt the same cropping pattern for the

remaining four yeras. In case, the cropping pattern adopted by the farmer is changed

in the subsequent year, the limit may be reworked.

► Simplified documentation and absolute flexibility in operation of the staggered limit

fixed following the procedure as per Cir No.211-2012-BC.

► Disbursement:

The limit under SKCC is in the nature of revolving cash credit facility. There should be

72

no restriction on number of debits and credits. Further, the drawing limit for the current

season/ year may be allowed to be drawn by using any of the following delivery

channels.

Operations through withdrawal slip.

Operations using cheque facility.

Withdrawal through ATM/Debit Cards.

Operations through Point of Sale (PoS) facilities.

Personalised Rupay Kisan Cards (RKC) to be issued to all SKCC holders following

the relaxed procedure for issue through CARMAN application made available by

CO: Debit Card Cell, Card Centre.

► Interest at saving bank rate will be paid on daily product basis for credit balance of `

500/- or more held continuously in the account for 15 days or more.

► Personal Accident Insurance Cover available up to ` 50,000/- to the card holder up to

70 years of age.

► National Agriculture Insurance Scheme (NAIS) and Weather Based Crop Insurance

Scheme (WBCIS) cover provided for the notified crops in the notified area / season

wherever the concerned State Govt. has issued such notification. ROs are designated

as nodal offices for implementation of the insurance schemes and the guidelines issued

for coverage from time to time are to be adhered to.

► Premium requirements for Crop Insurance, Asset Insurance and Personal Accident

Insurance are eligible to be included while arriving at the limit.

► Benefit of the Interest Subvention Scheme of GOI extended for crop production limit

up to a maximum of ` 3.00 lakh. Guidelines issued in this regard from time to time to

be adhered to.

► Branches provided with GEFU upload utility for bulk opening of accounts in CBS to

ease the pressure during the cropping season

► Systems and procedures, Checklist and Dos/Don’ts prescribed to be strictly followed

to deter unscrupulous parties / use of fake documents / records

Circulars 1. 211-2012-BC-PSCD-16 dated 20.07.2012--Base guidelines.

2. 258-2012-BC-PSCD-21 dated 07.09.2012-Checklist.

3. 301-2012-BC-PSCD-26 dated 22.10.2012-Modified guidelines.

4. 329-2012-BC-DIT-07 dated 20.11.2012-Bulk opening of accounts through Gefu

upload.

5. 057-2013-BC-PSCD-08 dated 18.03.2013-Care to be exercised.

6. 121-2013-BC-PSCD-13 dated 14.05.2013-New Rate of Interest.

7. 155-2013-BC-PSCD-18 dated 04.07.2013-Dos and Don’ts.

2. SYNDICATE KISAN SAMRUDDHI CREDIT CARD (SKSCC)

Important

Features

A composite credit product for crop production, working capital and small

investment credit of medium term nature and consumption credit requirements of

the farmer.

Validity is 5 years subject to annual review.

Investment credit requirements of small nature having only medium term

maturity of not more than 5 years.

Eligibility:

All farmers having agricultural lands in their own name and residing in the service /

operational area of the branches are eligible.

73

Features Fixation of Credit Limits

Single point credit assessment for both short term as well as term loan

requirements of farmers for agriculture and allied activities including

consumption credit component etc.

Short term credit limit eligible to be assessed / arrived at as per the norms /

procedure prescribed for SKCC.

Assessment investment credit requirement - Details of investment activities

having medium term maturities not exceeding 5 years for agriculture and allied

activities for the full year shall be obtained including the probable months of

need and worked out based on the unit cost.

Total credit limit eligible for one full year is assessed on the above lines and

limit is fixed taking into consideration the repayment capacity of the borrower.

Maximum

limit

` 5.00 lakh.

Maintenance

of Records:

Pass book to be issued recording the two parts -

Short term limit in the form of overdraft facility and

Investment credit portion in the form of term loan.

Maintain separate accounts for Short Term component and Term Loan component

exclusively for the facilities under SKSCC

Release

Terms/

Precautions:

Operation allowed in the overdraft limit as and when required and term loan

component to be released as per requirement in his credit plan furnished and

approved by the bank. End-utilization to be ensured and necessary recovery steps to

be taken if mis-utilized.

Rate of

Interest /

Margin /

Security /

Prudential

Norms

As per extant guidelines for agricultural loans

Insurance:

Cover eligible crops under National Agricultural Insurance Scheme in notified

areas

Cover investment credit component such as pump set, power tiller etc. under

Comprehensive Insurance.

Interest

Payment for

credit

balance:

Interest at SB rate on credit balance of ` 500/- and above remaining for a minimum

of 15 days continuously in short-term operative limit to be paid on daily product

basis

Processing &

Inspection

charges:

Processing charges and inspection charges shall be collected while arranging the

facility and also on renewal as per extant guidelines.

Folio charges shall also be collected for Overdraft component as applicable to

SKCC.

Repayment

schedule:

Validity of overdraft limit is as per the extant guidelines of SKCC and operation

is flexible.

Repayment for term loan component to be scheduled based on type of activity/

investment and the anticipated income stream / cash flow from all the

investments made on the farm.

74

Review of the

limit:

OD limit is reviewed on an annual basis and if operation is satisfactory allowed

to continue.

Reduce the limit wherever the sanctioned limit is not utilised as per the request

furnished by the party at the time of submitting loan application.

At the time of renewal, if additional facilities are required, consider subject to

viability of the investment, repayment capacity of the borrower and security

coverage. In such cases, obtain fresh application and documentation from the

parties to the transactions.

Balance

Confirmatory

Balance confirmatory to be obtained and placed on record on a yearly basis.

Following recitals to be added after writing details of existing liabilities in

balance confirmation with signature of the borrower and surety.

"The Loan papers and the security documents executed by me along with surety

shall be subsisting for existing/reduced limits. I shall execute separate additional

documents for enhanced limits”

AOD to be obtained at least 6 months prior to the expiry of the document if

balance confirmation as above is not obtained

Insurance

cover Personnel Accident Insurance Scheme (PAIS): The beneficiaries under SKSCC

are to be covered under PAIS as in case of SKCC.

Relevant

Circulars

1. Cir No.191-2004-BC-PSC dated 06.10.2004-Base guidelines.

2. Circulars listed under SKCC.

3. SYND KISAN SWARNA (SKS)

Important

Features

A hassle free loan facility to agriculturists against security of gold ornaments.

Synd Kisan Swarna shall be extended by rural and semi-urban branches only

Purpose-wise eligibility to be assessed and prescribed Loans to Value Ratio to be

maintained.

Eligibility:

Synd Kisan Swarna to existing SKCC/other farm loan clients:

1. No documentary proof shall be insisted upon to existing SKCC / other farm loan

clients since the land holding particulars and proof are already on record with the

Bank. The particulars of existing facility/facilities under SKCC/term loan shall be

mentioned in the Synd Kisan Swarna application form.

2. End utilization of the loan proceeds shall be certified by the sanctioning

authority/authorized official of the branch in Annexure-I to Cir no.182-2010-BC.

Synd Kisan Swarna to other customers

1. For loan amount up to ` 1,00,000/-, the Branches may extend Synd Kisan Swarna

based on the self-declaration given by the farmers. The self declaration by the

farmers regarding their land holding, tenancy, share cropping, oral lease etc., would

be sufficient to establish their status as farmers.

2. For loans above ` 1,00,000/-, documentary proof like copies of land records, land

revenue paid receipts, transfer deeds, land possession certificate etc., shall be

obtained and loan shall be sanctioned taking into consideration the requirement of

the farmer for meeting the cost of cultivation of crops or expenses related to

investment in agriculture or allied activities.

Further, in both the above instances, the sanctioning authority/authorized

official of the Branch shall ensure and certify the end utilization of the loan availed

by the farmer in the Annexure -I to Cir No.182-2010-BC and keep the same along

with loan papers.

Urban Branches having service area villages and extending agricultural loans

including agricultural jewel loans may extend Synd Kisan Swarna loans following

the aforesaid guidelines.

Similarly, urban Branches , which do not have service area villages but extend

agricultural loans, may extend Synd Kisan Swarna loans to all existing farm loan

clients only without insisting for documentary proof.

Port town and Metropolitan branches may grant Synd Kisan Swarna, irrespective of

the amount, only with the production of documentary proof by the applicants for

being agriculturists. Further, quantum of loan shall be properly assessed taking into

consideration the requirement of the farmer for raising crops and/or investing in

agriculture/allied activities.

Financial requirements of applicants who do not own land / property like tenant

75

Release

Terms/

Precautions:

While determining the quantum of loan to be sanctioned, the Branches shall

invariably take into account the requirement of the farmer for crop cultivation /

investment in agriculture / allied activities in addition to the value of gold pledged.

Value of gold pledged alone will not be the criterion for determining the quantum of

loan. Indicative information on the scale of finance for major crops and unit cost for

various investment activities etc., are provided in Annexure-2 to Cir No.182-2010-

BC. Since the information is only illustrative, Branches are advised to arrive at the

quantum of loan taking into account the crops raised / investments proposed, scale of

finance for crops prescribed if any or the actual cultivation / investment cost required

by the farmers.

Interest

Subvention

For all SyndKisan Swarna loans for crop production purpose, branches shall avail

interest subvention available for crop production as per procedure. However, the

maximum loan amount of short term crop production loans eligible for interest

subvention has been restricted to ` 3.00 lakh per borrower including the limit under

SKCC, if any.

Maximum

limit

The loan amount for gold loans to agriculturists is capped at ` 3.00 lakh per borrower.

Relevant

circulars:

1. 182-2010-BC-PSCD-22 dated 19.07.2010-Base guidelines.

2. 219-2010-BC-PSCD-29 dated 23.08.2010-Amendment to the guidelines.

3. 027-2012-BC-PSCD-02 dated 31.01.2012-Revised rate of interest

4. 224-2012-BC-RBD-39 dated 01-08-2012-Amendments / Additions to gold loan

policy.

5. 027-2013-BC-PSCD-03 dated 06.02.2013-Reiteration of guidelines to avoid

deviation

6. 95-2013-BC-RBD-19 dated 16.04.2013-Revision in scale of finance for 22 Carat

gold.

7. 131-2013-RBD-23 dated 01.06.2013-Lending against specially minted gold coins.

8. 273-2013-BC-RBD-43 dated 10-10-2013 -Revision of Rate of Interest for Gold

Loans

9. 297-2013-BC-RBD-46 dated 08-11-2013 -Maximum limit for gold loans to

Agriculturists

10. 315-2013-BC-RBD-49 dated 18-11-2013-Revision of Scale of Finance

11. 332-2013-BC-PSCD-27 dated 26-11-2013-Relaxation in obtaining documentary

proof of lands cultivated for loans up to `1.00 lakh in case of customers who are

not existing SKCC or other farm loan clients.

12. 073-2014-BC-RBD-10 dated 28-02-2014-Directions on maintenance of prescribed

Loans To Value (LTV) and norms for extending jewel loans for 22 carat gold.

4. SYNDICATE FARM HOUSE SCHEME FOR AGRICULTURISTS

Purpose:

For constructing new farmhouse on the farm or in the village where the farmer

normally resides.

For acquiring additional Farm House even if the borrower or his spouse/dependent

children are already having an existing Farm House subject to satisfying other

terms of the scheme.

For purchase of ready built farm house.

For repair to the existing farmhouse

Requirements:

Farmhouse should consist of at least any two of the following structures whether

attached to main housing unit or as separate unit.

Store house for farm inputs/produce.

Cattle shed to house farm animals.

Tractor/Power tiller/Cart/Equipment/Implements shed.

Threshing/drying yard with or without processing facility.

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Work shed for weaving and other non-farm activities.

Sericulture shed/silk worm rearing house.

The size of the farmhouse should be relevant to the size of the family and net

income from the farm and repaying capacity of the farmer.

Eligibility Should be a farmer from the operational area.

The applicant or any member of his family should not be defaulters to any Bank or

financial institution.

The age of the applicant should not be more than 55 years as on date of

application.

Maximum eligible age may be relaxed from 55 to 60 years in deserving cases by

the sanctioning authority subject to one of the legal heirs joining the transaction as

co-borrower.

Maximum eligible age beyond 60 years may be relaxed in deserving cases by the

next higher sanctioning authority subject to condition that those persons who have

/ may have interest in the property join the transaction as borrowers and also

execute the mortgage

Quantum of

Loan

Quantum of loan is to be fixed on the basis of estimated cost of

construction/repairs.

Maximum eligible loan for construction/acquiring new farmhouse is ` 15.00 lakh

or 75% of estimated cost of construction / acquisition whichever is less.

Maximum eligible loan for repairs is `2.00 lakh or 75% of the estimated cost of

repairs whichever is less.

Margin 25% of estimated cost of construction/acquisition/repairs.

Rate of Interest Rate of Interest is as applicable to housing loans. Charging of interest is on half yearly

rest as applicable to agriculture loans.

Farmhouse loan shall be excluded for the purpose of aggregation of liabilities for

determining the size of the limits for the purpose of fixing rate of interest on other

loans availed / to be availed by the borrower and interest rate on Farm House loan is

independent of other loans availed by the borrower.

Security:

Mortgage of land or creation of charge on agricultural land on which the farm

house is constructed subject to clear title to the property.

If title to the property where farm house is proposed to be constructed is not clear,

mortgage of agricultural lands having clear title and adequate value to cover the

loan shall be taken. However, it shall be ensured that the site of construction of

farmhouse belongs to the borrower.

However, Branches need not insist for mortgage up to a limit of `1.00 lakh in case

of genuine difficulty in offering mortgage of lands as security. In such cases,

creditworthy party acceptable to the Bank shall join the transaction as surety.

Release terms/

Precautions

First ensure the investment of applicant’s contribution.

Loan amount shall be released in instalments depending on the progress in

construction on ensuring full and satisfactory utilization of instalment released

earlier.

Repayment

holiday

Maximum of 18 months depending upon the time required for construction. But no

repayment holiday is allowed for loans in case of repairs. Interest accrued during the

repayment holiday to be collected.

Repayment:

Maximum period for farm house loans other than repairs is 15 years. Maximum

period may be extended up to 20 years based on specific request and keeping in

view the cash flow subject to the condition that persons having interest in the

property join the transaction as co- borrowers or sureties.

Maximum repayment period for Farm House Repair is 5 years.

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Repayment may be in half yearly/yearly instalments along with interest.

Sanctioning

powers

Powers delegated for granting Housing loans shall be exercised for sanctioning the

loans.

Other

conditions:

Plan and cost estimates of the farm house to be constructed to be obtained.

In states wherever permission from Panchayat is compulsory, the same shall be

obtained and placed on record along with the loan documents.

Insure against risk of fire with Bank clause.

Relevant

Circulars:

1. 129/99/BC/CR/42/PSC&RDD dated 20.07.1999-Base Guidelines

2. 146-2004-BC-PSC dated 03.08.2004- Modification in guidelines

3. 178-2010-BC-PSCD-21 dated 14-07-2010 – Revised Margin / Security

Norms.

AC to ROs vide Ref. No.3016/CO:PSCD/III/2013 23.01.2012-Revised ceiling on

loan amt

4.SYNDJAIKISAN

(REVISED SCHEME)

Purpose

A hassle free term credit product devised for farmers taking into account a holistic

view of their credit requirement for investment purposes in Agriculture and household

purposes with simplified systems and procedures.

Eligible

farmers:

a) The farmers who have availed loan under Synd Jai Kisan Scheme and closed the

same fully or repaid partially as per terms of sanction are eligible to avail fresh

loans under Synd Jai Kisan scheme as per the revised guidelines.

b) For others, farmers with 3 years of proven track record in repayment of farm loans

are eligible.

Eligible

purposes

Credit requirement relating to contingent investments in farm development:. For

example, extension of existing irrigation pipeline in the farm, repair/replacement of

pump-sets’ components, repair of tractor, repair of cattle shed, fencing, construction

of approach road, replanting of coconut, arecanut, cardamom, coffee etc., in the

existing plantation/orchards on a small scale, replacement of existing dairy and other

farm animals , land development etc., are eligible purposes. The purposes

mentioned are only indicative and not exhaustive.

In addition, Small and Marginal Farmers who would like to purchase land to have

viable and productive land holdings are also eligible.

Quantum of

Loan

Maximum ` 5.00 lac

The quantum of loan for the eligible farmers as per (a) & (b) above, shall be

determined as under:

a) Farmers who have repaid the loan in full as per (a):

Irrespective of the loan amount sanctioned earlier and repaid in time as per the

terms of sanction, a maximum amount up to ` 5.00 lakh may be sanctioned

subject to the repaying capacity, land value and annual income of the

applicant.

b) Farmers who have repaid the loan partially as per (b):

In respect of the beneficiaries who have availed financial assistance earlier

under the scheme and repaid the same partially as per terms of sanction, the

quantum of fresh loan may be equal to or less than the amount of repayment

already made, subject to an upper limit of ` 5.00 lakh. The stipulated amount

may be sanctioned subject to the repaying capacity, land value and annual

income of the applicant.

c) For others i.e., the farmers with 3 years of proven track record of prompt

repayment of farm loans as per Sl. No.1 (b), a maximum amount of ` 5.00

lakh may be sanctioned subject to the repaying capacity, land value and annual

78

income of the applicant.

Criteria for determining the quantum of loan amount:

Following criteria shall be adopted for determining the quantum of loan amount:

(a) The quantum of loan amount should not be more than 40% of the distress sale

value of the land offered as security. For determining the value of land,

Branches shall obtain a Valuation Report from the approved valuer of the

Branch.

(b) Three times annual income of the farmer. For determining the annual income,

an income certificate from competent Revenue Authority shall be obtained.

Whichever is lower in (a) and (b) above shall be taken into account for deciding

the quantum of loan amount.

Sanctioning

Powers

Branch heads, up to their delegated sanctioning powers, are permitted to sanction

credit facilities to the existing borrowers of Synd Jai Kisan Scheme with three years

of proven track record of repayment. In respect of credit proposals falling beyond

the delegated powers of the branches, the same shall be forwarded to respective

Regional Office for sanction.

Credit proposals from existing borrowers/farmers with three years of proven track

record of repayment of farm loan and who have not earlier availed loan under

SyndJaiKisan shall be forwarded to respective Regional Office for sanction. Margin, Rate of

Interest &

Service Charges

As per extant guidelines on Agril. credit

Release:

As and when required by the borrowers. End utilization of the amount already

released shall be ensured before releasing any further amount and maintain records

there of like receipts, vouchers, follow-up reports etc.

Repayment

a. Cut Back Norm:

Cut back towards repayment shall not be more than 50% of farmer’s annual income

from farm and non-farm sources. While arriving at the cutback amount, branches

shall take into account the repayment towards existing liabilities as well as other

family commitments.

b. Repayment period:

The loan sanctioned under the scheme shall be repayable within maximum period of

7 years including 11 months of repayment holiday. The repayment schedule shall be

fixed after discussing with the farmer and taking into consideration the expected

date of harvesting and marketing of the farm produce.

Security:

The facility shall be secured by creation of mortgage/ charge on land after ensuring

clear title to the property by obtaining legal opinion from the panel advocate. In case

of existing mortgage/ charge, supplementary legal opinion is to be obtained while

considering fresh facility under the scheme.

The value of the security should satisfy the criterion prescribed under point No. 4(a)

above and the quantum of loan shall be determined taking into consideration the

existing and proposed loan.

Valuation of the Security:

The value of land proposed to be offered as security shall be got valued by the

approved valuer of the Branch in respect of proposals from beneficiaries who have

repaid fully / repaid partially or from farmers with 3 years of proven track record of

repayment of farm loan.

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Classification &

Reporting:

The loans disbursed under the scheme shall be classified under Direct Finance to

Agriculture.

While reporting in AR-1106 (ADV 21/49), the disbursement as well as outstanding

under the scheme shall be reported under (1) Direct Agriculture. Further, it should

be reported under the relevant term loan code taking into consideration the activity

for which the major portion of the loan amount is sanctioned. For example, ` 5.00

lakh is sanctioned to a borrower, of which ` 3.00 is for land development purpose

and the balance amount is for other investment purposes. In such cases, the entire

amount should be reported under Land Development (code No 0107 of AR1106/adv

21/49 statement). Branches are advised to report both disbursement and balance

outstanding under a single code in main sheet of ADV 21/49 statement and not to

segregate and report under different codes of ADV21/49.

Under supplementary information in AR-1106 (ADV 21/49), the progress under the

scheme shall be reported under code number 3011.

Relevant

Circulars:

1. 271-2011-BC-PSCD-18 dated 01-10-2011-Guidelines of Revived Scheme

2. 282-2009-BC-PSCD-30 dated 25-11-2009-Discontinuation of earlier scheme

3. 148-2007-BC-PSCD-05 dated 19-02-2007-Comprehensive guidelines of earlier

scheme.

5. SYND GREEN HOUSE

A Scheme for Financing Green House Technology- Cultivation of Flowers and Vegetables under

Low Cost Green Houses

Purpose &

concept:

The usual practice followed in traditional agriculture is growing of crops under open field

conditions where the growth of the crop and its yield are subject to agro climatic

conditions of the locality, vagaries of climate and attack by pests and diseases. The

farmers do not have any control over these climatic variations which severely affect the

crop production in the open field conditions. Thus, the modern or scientific cultivation

developed the protective cultivation technology to grow crops in controlled climate for

optimum production from the crops.

Protective

cultivation

technology

Protective cultivation technology is a cropping technique wherein the micro climate

surrounding the plant body is partially / fully controlled to match the requirement of the

plant species grown during their period of growth. Along with the advancement in

agriculture various types of protected cultivation practices suitable for a specific agro-

climatic zone have emerged. Among these protective cultivation practices, Green house /

poly house cum rain shelter is the most popularly adopted one for growing flowers and

vegetables to meet the demands of both domestic and export market.

Advantages

of green

house

technology

The benefits which can be derived from the green house cultivation are as follows:

1. The control of micro climate or environment enables growing the crop suitable to the

area at any time of the year anywhere in the world.

2. The crop yields are at the maximum level as the output per unit area or per unit

volume or per unit input is optimum.

3. Higher quality of production is ensured as the products are free from insect attack,

pathogens and chemical residue.

4. High value and high quality crops could be grown for export markets and thereby

increase the income of the farmer, particularly the one with small and the marginal

land holding.

5. It can be used to attract the educated rural youth to farm sector and generate self

employment to them.

However, our branches were hesitant to entertain proposals under hi-tech horticultural

projects for cultivation of flowers and vegetables due to non availability of scheme

guidelines. Keeping this in view, a model scheme for financing green house technology

for cultivation of flowers and vegetables under low cost green houses duly approved by

the Competent Authority was circulated to the branches / offices under the brand name

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“Synd Green House”, in December 2010.

Low cost

Green

Houses:

Green Houses are framed structures covered with transparent or translucent material and

large enough to grow crops under partially or fully controlled environmental conditions to

get maximum productivity and quality produce. In the prevailing economic conditions

where capital is a scarce input, majority of the nurserymen and entrepreneurs prefer low

cost green houses.

Planning

and

Designing

for a Green

House

Facility:

The green structure is location specific and needs to be designed to withstand the load of

covering material, intensity of rain, wind velocity and specific cropping activity.

Selection of Site:

Selection of proper site is important for better functional environmental operations and

management of a green house. Adequate provision should be made to divert surface water

away from the green house as ground slope for drainage is an important factor. Green

house should be located away from the buildings and trees to avoid obstruction of

sunlight. Orientation of the green house could be in any direction when they are in single

spans. But multi-span green houses should be oriented in North-South direction only, to

avoid continuous shading of certain portions of green house by the structural members.

Components of Greenhouse:

While a low cost green house has normally only two segments viz., the frame and the

covering material, the high and medium cost green houses have an addition,

environmental control gadgets / equipments which add to the cost, besides having

different life periods.

Dos and Don’ts in Green House Construction:

1. Structure should be properly oriented and strong enough to withstand the wind

pressure.

2. Film must be stretched and secured to the frame tightly, to avoid tearing of the film.

3. Sagging of the film could be avoided by drawing GI wire over the arches tightly.

4. Sufficient ventilation should be given for exchange of air / heat.

5. All ventilations must be provided with insect proof mesh / rambonet.

6. The greenhouse cost per sq. mt. will be inversely proportional to the area of the

structure.

Utilization of Green House:

A low cost green house can be utilized for following two distinct purposes.

1. Propagation of Plant Material: Green House will not only help in getting a higher

extent (80 to 90 %) of graft success, but will also help in extending the period of

grafting almost throughout the year irrespective of season and ambient conditions. It

is however, desirable to utilize such low cost structures for propagating high value

horticultural crops (fruits, plantation, medicinal, aromatic and ornamental) and those

which are difficult to propagate under ambient conditions to fetch high and sustained

returns.

2. Growing of Commercial Flowers: The low cost green house could also be usefully

utilized for commercial cultivation of roses, gerbera, carnation and gladiolus for

getting higher productivity and quality flowers. A green house even 100 sq.mt area, if

utilized for crops like roses can accommodate 700 to 750 budded plants of choice

varieties.

For model projects dealing with the techno- economic details for cultivation of flowers

like Gerbera, Rose and carnation and vegetables like coloured Capsicum and Broccoli,

branches may refer the circular

Financial

assistance:

National Horticulture Board (NHB) is providing subsidy assistance for establishing Hi-

Tech agricultural crops such as for flowers, vegetable cultivation and raising nursery

under green house / poly house under their Scheme for “Development of Commercial

Horticulture through Production and Post Harvest Management”. However, with effect

from 1st May 2010, NHB will consider proposals for issue of Letter of Intent (LoI) and

81

subsidy in respect of projects having an area of more than 10 Acres under open field

conditions and more than 1000 Sq. Meters under controlled conditions / protected

cultivation.

It is informed that projects under the scheme with 10 Acres & less in open cultivation

conditions and 1000 Sq. Meter & less under controlled conditions / protected cultivation

will be considered under the National Horticulture Mission (NHM) by the respective State

Directorate of Horticulture Mission. Therefore, the Branches have to properly educate

and guide the farmers / entrepreneurs for approaching the right agency for obtaining

subsidy for the project undertaken by them.

The pattern of subsidy provided under the scheme is as under:

Capital investment subsidy not exceeding 20% of the total project cost with a maximum

ceiling of ` 30 Lakh per project in North-Eastern / Tribal /Hilly areas. Capital investment

subsidy not exceeding 20% of the total project cost with a maximum ceiling of ` 25 Lakh

per project in other areas.

Relevant

Circulars

1. 185-2010-BC-PSCD-23 dated 22.07.2010 – Scheme guidelines

2. 32-2008-BC-PSCD-02 dated 08-02-2008 – NHB Scheme details

6. SYNDKISAN SATHI (SKS)

Purpose &

concept

SyndKisan Sathi is a debt swap scheme for farmers indebted to non-institutional

sources like money lenders.

The scheme is introduced to provide financial assistance to farmers to redeem their

outstanding dues to non-institutional sources like money lenders and to free them from

the clutches of such lenders

Eligibility:

The eligibility criteria for availing credit facility under the revised Debt Swap Scheme

are as under:

All farmers including tenant cultivators / share croppers / oral lessees from the

service area villages of the branch, who are indebted to non-institutional money

lenders including existing SKCC borrowers and future SKCC borrowers drawing

SKCC limit up to ` 3.00 lakh.

The existing SKCC borrowers, who have already availed loan under debt swap

scheme as per circular No.309-2010-BC can either continue the same facility or opt

for a higher loan not exceeding ` 1,00,000/- including loan already availed, subject

to regularity of the existing loan availed under debt swap scheme/other schemes

and production of a notarized affidavit for having higher debt from non-

institutional money lenders without any additional security. The notarized affidavit

as per annexure shall be obtained.

The fresh loan under SyndKisan Sathi shall be a separate loan in cancellation of

existing loan availed under debt swap scheme in terms of circular no.309-2010-BC,

if any.

Quantum of

loan:

Need based credit against the indebtedness of the farmer from money lender with a

maximum of ` 1.00 lakh per farmer.

Margin: - NIL -

Security:

No separate security will be insisted upon since the farmers including tenant

cultivators/share croppers/oral lessees are already availing SKCC/crop loan from us

and the security taken for SKCC/crop loan will be taken as security for this loan.

Release Terms :

Loan amount shall, wherever possible, be released directly to the creditor/money

lender against a suitable discharge from the creditor. However, at the request of the

borrower, if the Branch Head is convinced about the proper utilization of the loan

proceeds, then, the loan amount may be credited to the borrower’s Savings Bank

82

account and the receipt for payment to the money lender need not be insisted.

However, a notarized affidavit, as per annexure to Cir No.75-2012-BC, should be

obtained to ensure that the money lent will be utilized for repayment of the debt with

the non-institutional lenders.

Repayment

period:

The loan shall be repaid in 5 to 7 years, including a moratorium period of not

exceeding 12 months. The repayment schedule may be fixed in half yearly/yearly basis

synchronizing with the harvesting season of crops grown/proposed to be grown, after

consultation with the borrower. Wherever possible, the farmer borrowers may be

encouraged to open a Pigmy Account to enable them to pool their savings, if any,

which can be utilized for repayment of the loan.

Rate of interest:

As per circular No. 121-2013-BC-PSCD-13 dated 14.05.2013 and revised from time to

time. The interest rate, at present, is as under:

For loan amount up to ` 50000/- Base Rate plus 0.25% i.e., 10.25+0.25 = 10.50%

p.a.

For loan amount above ` 50000/- and up to ` 1,00,000/- Base Rate plus 0.75%

i.e., 10.25+0.75 = 11.00%

Applicable tenor premium shall be loaded to the above rate.

The loan under this scheme is not to be aggregated with other loans and vice versa for

determining the size of loan for application of rate of interest.

Sanctioning

Powers:

Under Branch powers within the sanctioning powers as per circular No. 141-2012-BC-

RMD-16 dated 17-05-2012 (If the total limit exceeds the sanctioning powers of the

Branch, RO sanction shall be sought).

Documentation: As applicable to agriculture advances.

NABARD

Refinance:

Loans granted under the scheme are eligible for refinance from NABARD. Therefore,

Branches are advised to report disbursements made under the scheme to respective

Regional Office as per extant guidelines. Branches shall maintain proper records in this

regard.

Classification &

Reporting:

1. The advances under the scheme shall be classified under direct finance to

agriculture and disbursements as well as outstanding shall be reported under code

number 0168 of ADV 21/49 statement (S.No. B(s)-Advances to Debt Swap-(Synd

Kisan Sathi).

2. Loans sanctioned under the scheme shall be arranged under product code 840- FL

–Debt Swap. Branches shall not use any other code to arrange the facility.

Other

conditions:

1. Branches should discuss with each identified person and assess the credit

requirement and repaying capacity etc.

2. Farmers are required to satisfy the branch officials regarding indebtedness to

money lenders. The appraising officer shall prepare a suitable note for having got

convinced about such debt and the same shall be countersigned by the Branch

Head.

3. Defaulters with other Banks or organized sector lenders like other financial

institutions are not eligible.

4. Branches may take the help of Farmers’ Clubs / SHGs /JLGs /NGOs etc. for proper

identification of eligible farmers who are indebted to money lenders.

5. Sanctioning authority should thoroughly assess requirement of the farmer and

clearly establish the genuine need, repaying capacity and credit absorption capacity

before lending under the scheme.

6. Installments may be fixed based on income of the farmer, taking into account

savings in terms of reduced interest burden during post redemption of high cost

83

debt and future farm income.

7. The branches shall exercise proper caution to extend the facility by ensuring

genuineness/ correctness of the claim of the high cost indebtedness to ensure that

there is no mis-utilization of the facility.

8. Branches shall educate the farmers not to fall into clutches of money lenders again.

9. The farmers, who approach the Bank / are identified for loan under the debt swap

scheme, shall be asked to produce a notarized affidavit, as per annexure to Cir

No.75-2012-BC-PSCD-06 dated 12-03-2012, indicating the debt taken from the

money lender(s).

10. The sanctioning authority should satisfy himself about the income stream of the

borrower, which should be sufficient to liquidate the existing as well as proposed

one under SyndKisan Sathi before sanctioning any facility under debt swap

scheme.

11. Branches shall ensure that interest and installments of debt swap facility granted to

the farmers are recovered while renewing/reviewing the SKCC facility.

Relevant

circular:

075-2012-BC-PSCD-06 dated 12.03.2012.

7. SYNDKISAN TATKAL

Background The Department of Financial Services, Ministry of Finance, Govt. of India vide their

Circular Ref. No.F.No.21/7/2012/AC dated 26.07.2012 advised all Commercial Banks

to devise and implement six new products for the benefit of farmers as recommended

by a working group of Bankers constituted by the Govt. for the purpose. Keeping in

view the norms suggested by the working group, SyndKisan Tatkal Scheme is

introduced by our Bank with the following features

Purpose:

To provide an instant credit facility to farming community for meeting the emergency

credit needs to tide over the temporary difficulties (like post harvest emergencies) in

Agriculture, Domestic or Social fronts.

Eligibility Individual farmers / joint borrowers (not exceeding 4 farmers) who are existing SKCC

holders having satisfactory track record of at least two years in respect of whom the

branches have been convinced about their capacity for credit adsorption / repayment.

Quantum of

loan

50% of SKCC limit or 25% of annual income subject to a Minimum of ` 1000/- and a

maximum of ` 50000/-. Before sanction of the loan, requirement of credit or credit

absorption capacity and repayment capacity of the borrower shall be properly

assessed.

Documentation,

Rate of interest,

Processing &

other Charges

If requirement is beyond 50% of SKCC limit, proper proof of annual income of

borrower like income certificate from competent revenue authority to be obtained.

Other aspects are as applicable to agricultural term loans.

Disbursement As and when required by the farmer/s preferably after the harvest period of crops.

Loan account shall be opened in the product code 842 only.

Repayment

Period

To be repaid within maximum period of 5 years in half yearly / annual installments

based on income generation to the farmer.

Security:

Existing security / ies obtained for SKCC limit shall be taken as security. No

additional security to be obtained. However, when the amount exceeds ` 1.00 lakh,

security shall be obtained as per the extant guidelines of SKCC.

Classification of Under Direct Agriculture segment of Priority Sector.

84

loan

Asset

Classification

Norms:

Since it is essentially granted to farmers as a post harvest facility to provide liquidity

to farmers, “Crop Season” delinquency norm prescribed for agricultural loans will be

applicable to this facility also for asset classification.

Relevant

Circular

049-2013-BC-PSCD-06 dated 06.03.2013 & AC to ALL ROs vide Ref.

No.59/2943/PSCD-V/NF dated 25.03.2013

8.LOAN FOR PURCHASE OF LAND FOR AGRICULTURAL PURPOSE

Background The Department of Financial Services, Ministry of Finance, Govt. of India vide their

Circular Ref. No.F.No.21/7/2012/AC dated 26.07.2012 advised all Commercial

Banks to devise and implement six new products for the benefit of farmers as

recommended by a working group of Bankers constituted by the Govt. for the

purpose. Keeping in view the norms suggested by the working group, The Scheme

for financing farmers for purchase of land for Agricultural Purpose is one among

them. As per circular No. 142-2006-BC-PSC dated 30-06-2006 the guidelines of the

scheme revised by NABARD for financing purchase of land for agricultural purpose

has been communicated to all the Branches. The Bank has reviewed the guidelines

of scheme under implementation in our Bank against the norms in the new product

and accorded permission to align the guidelines of the scheme in our Bank with the

norms suggested by the working group in the new product. As a result, the

guidelines of afore said scheme have been revised as under:

Purpose:

The objective of the scheme is to extend term loans to the small and marginal

farmers including share croppers / tenant farmers on easy terms to purchase,

develop / cultivate agricultural land as well as fallow / waste lands with view to

increase agricultural production and productivity.

Bringing the cultivable fallow lands and waste lands under cultivation.

Enable the target group to diversify the present activities and take up allied

activities to agriculture and make their small holdings economically viable.

Eligibility Small and marginal farmers i.e. those who would own maximum of 2.50 acres

of irrigated land or 5 acres of non-irrigated land including the land to be

purchased under the scheme.

Share croppers / tenant farmers cultivating up to 2.50 acres of irrigated land or 5

acres of non-irrigated land including the land to be purchased under the scheme.

Entrepreneurs with agricultural background provided the state laws permit

purchase of agricultural lands by non-agriculturists.

In all the above categories of eligible beneficiaries, the total land holding of the

borrower after the purchase of land under the scheme should not exceed 2.50

acres of irrigated land or 5 acres of non-irrigated land or its equivalent.

Location of Land

Holding

The farmers may be encouraged to purchase land at one place to the extent possible.

In case it is not feasible due to any problems at field level, branches may allow the

farmer to purchase land within the village boundary or in a radius of 3-5 Kilometers

from the existing piece of land owned by him, keeping in view the manageability of

the fragmented holdings by the farmers in such case.

However, Branches shall satisfy themselves about this aspect before extending

credit.

Quantum of loan The quantum of loan will depend upon area of the land proposed to be purchased

and its valuation. Besides cost of land, the project cost may also include the value of

stamp duty, registration charges for sale / mortgage deed. However, the maximum

loan amount permitted for purchase of land is ` 10.00 lakh

Valuation For the purpose of valuation of land for deciding the quantum of finance, the price

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indicated by the farmer may be cross checked with last 5 years’ average registration

value available with the Registrar / Sub-Registrar of the area, Guidance Value /

Circle Rate fixed by the State and a view may be taken by the sanctioning authority.

Sanctioning

Powers

The Branches are permitted to sanction loan proposals under the scheme by

exercising sanctioning

powers as noted below:

Scale of Officer heading the Branch Sanctioning powers

Scale III & IV ` 10 lac

Scale II ` 5 lac

Scale I ` 2 lac

Proposals with loan amounts exceeding the above limits in respect of Scale I and II

shall be referred to Regional Office for sanction.

Margin No margin is stipulated for loans up to ` 1,00,000/- For loans above ` 1,00,000/- a

minimum margin at 10% of the project cost shall be met by the borrower.

Rate of interest Interest rates and penal interest are as applicable to agricultural term loans as per

extant guidelines.

Disbursement Loan for purchase of land shall be released directly to the seller at the time of

registration of sale deed. An authorization to this effect shall be obtained from the

borrower and the loan proceeds shall be released against proper acknowledgement.

Repayment

capacity

The Branches should satisfy themselves that the borrower would be in a position to

derive adequate surplus income from his production activity on the land being

purchased and other income to repay the Bank loan with interest after the purchase

and that he will be in a position to service the debt without any difficulties.

Repayment

Period

Loan is to be repaid in 7-10 years in half yearly / yearly installments including a

maximum moratorium period of 24 months. The moratorium period may be fixed

taking into account the gestation period of the project and cash flow.

Security: The land purchased out of bank loan shall be mortgaged in favour of the bank.

Availability of

NABARD

REFINANCE

NABARD would provide refinance under its Automatic Refinance Facility (ARF)

for the loans disbursed under the scheme. Hence, branches may report the particulars

of disbursement in the prescribed format (AR 1176) to the respective RO. However,

submission of drawal application to NABARD by ROs is subject to specific advice

from CO: PSCD regarding Bank’s policy for claiming refinance from time to time.

Classification of

loan

Under Direct Agriculture segment of Priority Sector.

Coverage of

Women

As ownership rights of land to women would lead to their empowerment, women

especially the women in distress, widows, SHG members etc. who are eligible as per

the laid down criteria under the scheme shall be encouraged to own land by

financing purchase of agricultural lands under the scheme.

Other terms &

conditions.

Viability and bankability of the proposal shall be the prime consideration and

only good quality proposals shall be entertained under the scheme. Proper end

use shall be ensured after release of loan and necessary records shall be

maintained for the purpose.

As the scheme is basically meant for boosting the production and productivity

of land, finance shall not be provided for acquisition of land for investment /

speculative purpose for en-cashing benefits on rising prices of land.

The purchase of land should be for cultivation / development of agricultural as

well as fallow land or for establishing / diversifying into other allied activities.

Wherever farmers intend to purchase uncultivated / waste lands, they must also

submit their plans for developing the same and bringing it under cultivation

without any delay.

Whenever farmers are financed for purchase of un-irrigated land, the farmers

should be encouraged to go in for suitable crops like horticulture / plantation

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crops depending upon the climatic conditions and also take up activities like

dairy, poultry etc.

Proposal for development of the land purchased or for diversifying into other

allied activities such as

Dairy, Poultry etc. may be entertained with comprehensive details about the

project proposed to be under taken by the farmer and subject to technical

feasibility & economic viability of the proposal and discretionary powers of the

Sanctioning Authority for the purpose.

Wherever land development involves digging of open wells / drilling of bore

wells, the possibility of getting electricity supply on priority basis such as under

Tatkal scheme should be explored.

Arrangements to lift water from the well for irrigation purpose shall form part of

the development proposed.

Loan sanctioned for post purchase development works may be released in

stages after title of the land purchased out of loan is got transferred in borrower’s

name and after completion of mortgage formalities.

In certain States / Regions, State Governments have imposed restrictions on

sale/ purchase of agricultural land (Eg. Tribal belt, SC / ST, Hill areas etc). The

branches shall ensure at the time of obtaining legal opinion that no such

restriction apply while entertaining the loan proposal for purchase of land.

During the period of loan, the farmer shall not sell the land.

Asset

Classification

Loan shall be classified under “Direct Agricultural Advances”.

Relevant

Circular

BC 09/2013 /PSCD Dt. 10.01.2013., 83/2014, 84/2014

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Help Desk Numbers for staff

PRODUCT/ SERVICES IP NODE CONTACT NO.

CASA / Deposits / Publicity

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Publicity 172.18.2.05 080-22260281

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MSME 172.18.2.176 080-22208375

Priority Sector Credit

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Missed Call Banking/SMS Banking

18004255784

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9449860157

9449860373

Insurance / Mutual Fund

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CMSC

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Card Centre

Credit Card 172.18.46.152 080 26639971

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Call Centre No: Debit Card 1800 425 0585 (tollfree)

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022-40426003 (chargeable)

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