Business Growth Through Sales and Service Excellence

Complied by

P. K. Bhatnagar Chief Manager (Navnirmaan)

Regional Office, Baroda Phone No. 0265 2362301 (D), 0265 - 2363133

F - 0265-2226057 Mobile No. 91-9428172986

E-mail pkbhatnagar_bob@yahoo.co.in

(Updated up to 30th September, 2011) Version - 11: 09: 11

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FOREWORD

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

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

P. K. Bhatnagar

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RETAIL LENDING PRODUCTS

INDEX

S No NAME OF PRODUCT PAGE 1 BARODA HOME LOAN 4 2 BARODA MORTGAGE LOAN 23 3 BARODA ASHRAY (REVERSE MORTGAGE LOAN) 29 4 BARODA TRADERS LOAN 32 5 BARODA EDUCATION LOANS 35 6 BARODA AUTO LOAN 50 7 BARODA PERSONAL LOAN 55 8 BARODA ADVANCE AGAINST GOLD JEWELLARY / ORNAMENT 59 9 BARODA TRADERS LOAN AGAINST THE SECURITY OF GOLD

ORNAMENT / JEWELLERY 61

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

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

73

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

76

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

FRAUDS- INTRODUCTION OF CHECKLIST 87

DISCLAIMER

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

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BARODA HOME LOAN

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

BARODA HOME LOAN PURPOSE: Purchasing of new residential house / flat and construction of new

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

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

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

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

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

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

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

(Salaried Person - repayment period shouldnt be beyond retirement age and for Others - 65 years )

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

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

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

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

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

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

INCOME CRITERIA:

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

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

48 times of monthly gross income Salaried

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

income excluding depreciation

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

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

REPAYING CAPACITY:

Total deductions including proposed EMI should be as below :

(i) In case of Salaried Persons :

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

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

50,000/- 50%

Rs 50,000/- 60%

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(ii) In case of Others :

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

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

lacs 60%

Rs 12 lacs 70%

MARGIN: For Salaried Persons :

Monthly Income Purpose Margin

Purchase of Plot ( incl. registration charges & cost of

stamps )

20%

House / Flat already constructed from own resources

25%

Up to

Rs 20,000/-

All other cases including out right purchase of Readymade Houses / flats or construction of houses

20%

Purchase of Plot ( incl. registration charges & cost of

stamps )

20%

House / Flat already constructed from own resources

20%

Above

Rs 20,000/-

All other cases including out right purchase of Readymade Houses / flats or construction of houses

20%

For Others :

For purchase of plot and all other cases including out right purchase of Readymade Houses / flats or construction of houses: 20%

For houses / flats already constructed from own resources and loan is taken subsequently, 20% of the cost of construction / purchase price of house / flat.

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

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

REPAYMENT:

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

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

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

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

RESET CLAUSE:

W.e.f. 16.08.07 Bank has introduced Reset Clause per which Interest rates under Fixed rate option will be reviewed and revised at every 5 years ( BCC/BR/99/243 dated 04.08.2007) accordingly first reset will take place on or after 04.08.2012 i.e. after 5 years of sanction.

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

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

RISK RATING :

All home loan applications are subject to CRISIL Risk rating (BOBRAM). Total marks are 168 and the cutoff is set at 96.

SECURITY:

Mortgage of the property constructed / purchased. If mortgage is not

available, branch can accept, at its discretion, security of adequate value in the form of collaterals as may be deemed adequate including third party guarantee from individuals.

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

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

Duly stamped and registered original agreement to sale executed by

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

authority. NOC from the builder for creating mortgage and noting of Banks lien

if the building is under construction.

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

Possession letter in original.

OTHER CHARGES: Unified Processing Charges:

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

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

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

Pre Closure Charges:

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

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

INSURANCE:

The insurance of the house mortgaged to the bank is to be done at the banks cost under Baroda Home Loan Suraksha Bima Policy with National Insurance Company Ltd.

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

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

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

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

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

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

HOUSING LOAN TO STAFF UNDER THE SCHEME:

S. No.

NORMS EXISTING MODIFIED

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

Rs 10 lacs

No specific limit Rs 3 lacs

Rs 25 lacs Rs 10 lacs

Rs 5 lacs

2. Margin : For purchase / construction of new

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

extension of existing house

20 %

30 % 35 % 25 %

20 %

20 % 20 % 25 %

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

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

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

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

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

0.50 % discount in interest rate to housing loan borrowers if availing loan facility under banks scheme viz. Baroda Loan for Consumer Durables.

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

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

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

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

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

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

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

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

Following accounts should be classified and reported under Priority Sector Advances

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

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

CHECK LIST :

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

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

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

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

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

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

REFERENCE CIRCULARS

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

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

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

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

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

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

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

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

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

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

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

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

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BARODA HOME LOAN TO NRIs /PIOs / Overseas Citizen of India (OCI)

PURPOSE: Purchase of new residential house / flat Construction of new dwelling unit Purchase of old dwelling unit ( not more than 15 years old ) Purchase of plot of land, subject to the condition that a house will be

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

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

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

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

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

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

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

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

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

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

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

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

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

PARTICULARS MINIMUM MAXIMUM

Purchase new / old house / construction

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

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

For purchase of plot of land - Rs 50 lacs

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

20 % 20 %

- -

For repairs / renovations / extensions in existing house

20 % of project cost

-

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

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

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

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

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

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

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account and also to judge applicants other liabilities, repaying capacity etc.

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

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

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

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

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

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

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

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

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

REPAYMENT PERIOD: Maximum 15 years including moratorium Moratorium Period

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

BCC/BR/98/09 07.01.2006 Housing Loan To NRIs / PIOs BCC/BR/98/157 08.06.2006 Baroda Housing Loan To NRIs /PIOs Modification BCC/BR/98/ 08 07.01.2006 Take over of Retail Loans From Other Banks / HFCs / NBFCs BCC/BR/98/ 42 20.02.2006 Retail Lending Modification in Terms of Margin etc. BCC/BR/99/98 30.03.2007 Home Loan To NRIs / PIOs BCC/BR/100/102 12.04.2008 Baroda Home Loan To NRIs / PIOs Execution of Documents and

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

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

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ADDITIONAL ASSURED ADVANCE (RESIDENT / NRIs / PIOs)

PURPOSE:

Any purpose excluding speculative or illegal purpose.

ELIGIBILITY: All existing housing loan customers, whose conduct of the account are good

and the account is classified as Standard. There is no adverse feature / Auditors / Inspecting Officers remarks in

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

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

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

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

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

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

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

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

should cover both Housing Loan and AAA.

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

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

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

Deviation Norms

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BARODA HOME IMPROVEMENT LOAN

PURPOSE:

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

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

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

HUF & Staff members are not eligible.

LIMIT:

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

a. Salaried Persons 2 Times of Gross Annual Income

b. Businessman / self employed / Professional

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

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

MARGIN:

25 % of Project Cost which includes :-

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

OTHER CHARGES:

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

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

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

DOCUMNTATION CHARGES:

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

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

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

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

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

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

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

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

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

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

Deviation Norms

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INTEREST SUBSIDY SCHEME FOR HOUSING TO URBAN POORS

(For EWS & LIG Segment) PURPOSE :

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

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

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

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

ELIGIBILITY:

All individuals singly or jointly with close relatives households identified by the ULBs.

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

10,000/- Monthly income will be subject to revision from time to time. Facility shall not be extended to Drated borrowers.

LOAN AMOUNT :

For EWS: The scheme will provide a subsidized loan for a maximum amount of Rs 1.00 lac for a house at least of 25 sq.mts. Additional loans, if needed would be at unsubsidized rates.

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

For Salaried Class: Above mentioned limits are subject to maximum 36 times of last drawn (regular salary)

For Others: Subject to maximum 3 times of average annual income ( for last 3 years )

MARGIN:

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

For Outright Purchase: 20% of purchase price of house INTEREST:

As per the present interest rate structure on Housing Loans

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SECURITY:

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

loans up to Rs 1.00 lac excluding group guarantee. UNIFIED PROCESSING / PREPAYMENT CHARGES

There shall be NO unified Processing / Prepayment charges. REPAYMENT PERIOD:

Maximum 20 years inclusive of moratorium period Repayable in maximum 240 EMIs.

INSURANCE:

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

Suraksha Bima Scheme (with NICL) of the Bank applicable to all Home Loans. INTEREST SUBSIDY:

Under the scheme, a subsidy of 5% per annum will be provided for loans up to Rs 1.00 lac. The Net Present Value (NPV) of this subsidy will be arrived at on the basis of notional discount rate of 9% p.a. (equivalent to Government Security rate) for the period of the loan and on the interest chargeable at the time the loan is contracted.

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

The interest subsidy directly accrues to the benefit of the borrower upfront reducing his principal amount

The EMI will be lower than in a situation where the interest subsidy is disbursed through the loan period quarterly.

OTHER CONDITIONS:

All other conditions not covered above shall be as per guidelines contained in Master Circular no BCC:BR:97:185 dated 14.07.2005 and subsequent guidelines issued from time to time : BCC: BR: 99:292 dated 01.10.07 BCC: BR: 100:202 dated 28.07.08 BCC: BR: 100:299 dated 04.11.08 BCC: BR: 101:58 dated 21.02.09

REFERENCE CIRCULAR

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

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BARODA MORTGAGE LOAN

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

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

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

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

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

clubbed. For agriculturists income certificate from appropriate revenue authority to

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

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

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

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

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

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

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

Account is performing, conduct of account is satisfactory and business

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

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

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

the name of the applicant/s.

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

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

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

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

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

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

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

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

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

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

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

Maximum : Rs 50000/- + ST

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OVERDRAFT - 0.35 % of loan amount

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

Legal opinion to be obtained from Banks approved advocate. Actual Legal fees to be borne by the borrower. However, Branches may

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

TAKE OVER OF MORTGAGE LOAN ACCOUNTS FROM OTHER BANKS:

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

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

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

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

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

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

POWER OF DEVIATION:

Powers of Financial Deviations which have a direct impact on Profit & Loss A/C of Bank shall not be exercised below the level of BCC. However non financial deviations may be considered as per powers delegated.

REFERENCE CIRCULAR

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

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

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

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BARODA ASHRAY (REVERSE MORTGAGE LOAN)

PURPOSE: For Genuine needs other than speculative, trading purposes To supplement the cash flow stream of Senior Citizens in order to address

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

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

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

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

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

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

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

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

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

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

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

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

waived

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

REFERENCE CIRCULAR

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

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BARODA TRADERS LOAN

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

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

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

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

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

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

Trading units of non customers having less than 2 years establishment, with the prior approval of Regional authority.

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

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

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

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

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

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

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

Age of Property :

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

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

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

In case of Overdraft :

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

BCC/BR/99/268 06.09.2007 Revised Master Circular Baroda Traders Loan BCC/BR/101/52 14.02.2009 Charges for deviation from scheme norms BCC:BR:101:141 15.05.2009 Reasons for high delinquencies in the product BCC:BR:101:150 26.05.2009 Modification in Margin Norms BCC:BR:101:261 31.08.2009 Revised Modification in Margin Norms - BCC:BR:101:373 16.12.2009 Modification in Margin norms and interest rates

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BARODA EDUCATION LOAN

As we are aware that our Bank was having different products related to Education Loan. These Loan Schemes vide Banks Circular no. BCC: BR: 101:93 dated 28.03.2009 have been realigned for operational convenience under the name BARODA EDUCATION LOAN as below: 1) Baroda Education Loan ( Baroda Vidya / Gyan / Scholar ) 2) Baroda Loan For Career Development 3) Baroda Loan for Skill Dev. of Construction Workers. For the convenience of the readers the salient features of the schemes as mentioned above are detailed separately as under:

BARODA VIDYA TARGET GROUP: Parents of students pursuing school education from Nursery to Standard XII. ELIGIBILITY: Should be an Indian national residing in India. Student should have secured admission to a Recognized institution for any of

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

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

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

QUANTUM OF FINANCE: Ned based finance subject to repaying capacity of parents Maximum Rs 4.00 Lacs (with yearly sub limits)

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Loan for the next stage can be considered even though loan sanctioned

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

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

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

income. The income of spouse, wherever spouse is working also to be considered. PROCESSING & DOCUMENTATION CHARGES: -NIL FINANCING BRANCH: Loan may also be considered at the place of posting / service of parents or

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

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

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

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

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

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

for the benefit of Girl student.

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REPHASEMENT: The rephasement of repayment in genuine cases is considered by the next

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

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

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

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

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

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

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

COURSES ELIGIBLE:

Graduation / Post Graduation / Professional courses and courses like ICWA, CA, CFA etc. as well as courses conducted by IIM, IIT, IISc, XLRI, NIFT etc.

Evening courses of approved institutes. Other courses leading to diploma / degree etc. conducted by colleges /

universities approved by UGC / Govt. / AICTE / AIBMS / ICMR etc. Teachers Training Course, Nursing Course, B.Ed. etc. STUDENT ELIGIBILITY: Should be Resident Indian. Secured admission to professional / technical courses in India through

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

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

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

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

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

QUANTUM OF FINANCE: Need based finance subject to repayment capacity of parent / student,

based on the expected income to be generated after completion of the course.

Maximum Rs 10.00 lacs MARGIN: Up to Rs 4.00 lacs : NIL Above Rs 4.00 lacs : 5 %

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Scholarship / assistantship if any received to be included in the margin Margin may be brought in on year to year basis as and when disbursements

are made on a pro rata basis. PROCESSING & DOCUMENTATION CHARGES: NIL REPAYMENT & MORATORIUM PERIOD: Course period + 1 year or 6 months after getting job, whichever is earlier. The loan is repayable in 5 7 years after the above period. Extension of time to complete the course may be permitted for a maximum

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

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

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

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

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

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

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

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

guardian. The Regional Head may, at its discretion, waive third party guarantee. DISBURSEMENT: Directly to school / institution / hostel term wise / year wise, in stages. Directly to book seller / shop for purchase of books, instruments,

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

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

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

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

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

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

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

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

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

REPHASEMENT: The rephasement of repayment in genuine cases be considered by the next

higher authorities. INSURANCE:

W.e.f. 01.12.2008 Bank entered in tie up arrangement with Kotak Life Insurance for all fresh sanctions / disbursement made to Education Loan Borrowers to provide life insurance cover to them.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

work, thesis etc. QUANTUM OF FINANCE: Need based finance maximum of Rs 20.00 lacs. MARGIN: Up to Rs 4.00 lacs : Nil Above Rs 4.00 lacs : 15 % Margin may be brought-in on year-to-year basis as and when disbursements

are made on a pro rata basis. REPAYMENT HOLIDAY / MORATORIUM PERIOD: Course period + 1 year or 6 months after getting job, whichever is earlier.

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REPAYMENT PERIOD: The loan is repayable in 5 7 years after the moratorium period If the student is not able to complete the course within the scheduled time

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

In case of above extension, moratorium period will be extended accordingly. 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.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

PROGRESS REPORT: Progress report to be obtained at regular intervals and be kept on record. INSURANCE:

W.e.f. 01.12.2008 Bank entered in tie up arrangement with Kotak Life Insurance for all fresh sanctions / disbursement made to Education Loan Borrowers to provide life insurance cover to them.

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

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

higher authority. REFERENCE CIRCULAR

BCC/BR/96/380 08.11.2004 Master Circular Educational Loan BCC/BR/97/15 24.01.2005 Educational Loan Concession in Interest to Women BCC/BR/97/76 18.03.2005 Educational Loan to Meritorious / Poor Students BCC/BR/97/161 16.06.2005 Educational Loan Amendments BCC/BR/97/215 25.08.2005 Education Loan Clarifications ( Children of Staff Members

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

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

Norms BCC/BR/101/260 01.09.2009 Education Loan for Teachers Training Courses / Nursing

Courses / B.Ed. BCC/BR/101/277 12.09.2009 Online Application - URL BCC/BR/103/85 07.04.2011 Group Life Insurance Cover

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EDUCATION LOAN INTEREST SUBSIDY SCHEME

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

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

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

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

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

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

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

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

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

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

There would be t