CONTENTS
1.1
1.2
1.3
Overview
Objective
Products/Services
Operative account
Non operative account
Miscellaneous services
1.4
Instruments of operative account
1.5
Types of operative account
1.6
Savings account –definition /facilities
1.7
Types of flexi deposit
1.8
Current account –definition/facilities
1.9
Advances- definition /types
1.10
Cycle of operative account
1.11Types of non operative account
1.12
Types of deposits
1.13
Cycle of non operative account
1.14
Types of loans
1.15
Cycle of loans
1.16
Types of miscellaneous services
Overview
Retail Banking denotes catering to the requirements
of retail customers viz..individuals,professionals,self
employed etc.
Retail banking has seen a transformation over the
past two decades with respect to business focus,
delivery channel emphasis and the overall approach
to the banking business. Today, given the greater
stress being placed on mass customisation, banks
are increasingly relying on technology to provide
customised solutions to consumers.
Objective Of Retail Banking
• The objective of the Retail Bank is to provide its
target market customers a full range of financial
products and banking services, giving the customer a
one-stop window for all his/her banking requirements.
The products are backed by world-class service and
delivered to the customers through the growing
branch network, as well as through alternative
delivery channels like ATMs, PhoneBanking,
NetBanking and MobileBanking.
Products/Services Offered
• Operative accounts
• Non operative account
• Miscellaneous services
Operating account
The Main services offered in this
sector are :
• Savings account
1. Flexi deposits
– Auto sweep
– Reverse sweep
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•
Current account
Advances
Instruments of operative
accounts
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Cheques
Demand drafts
Managers cheques
Cash
Savings account
A minimum quaterly balance needs to be
maintained in this type of account.The
minimum balance criteria differs from bank to
bank.
Non Maintenance of minimum balance in the
account attracts a quarterly fee which again is
determined by the bank and varies for each
bank
Facilities offered for Savings
account
Debit-cum-ATM card
Auto Invest Account
Internet Banking
Phone Banking
Anywhere Banking
Standing instructions
Doorstep service
Flexi Deposit
There are two types:
1) In a savings account,the amount held
over and above the prescribed minimum
balance would be automatically put in a
term deposit earning higher return for
customer.This is termed ‘AUTO
SWEEP’
Auto Sweep
Eg : If ‘A’ hold an savings account with
bank ‘ABC’ where the minimum
balance is Rs 5000.If ‘A’ has a
balance of Rs 6000 in his account
the remaining 1000 ( 6000-5000) will
be automatically put in a term
deposit.
Reverse Sweep
Whenever the customer issues a
cheque which brings down his savings
account balance below the prescribed
limit,the shortfall amount will be
automatically taken from the term
deposit.This is called ‘reverse sweep’.
Reverse sweep
Eg
: Considering the pervious example of ‘A’ where
Rs 1000 from his account is held as term
deposit.If ‘A’ has issued a cheque for Rs
1000,when this cheque debits his account
his balance reduces to rs4000 which is below
the minimum limit of Rs5000.In such a case Rs
1000 which was held in term deposit gets
adjusted to savings account to bring back
the saving account minimum balance to Rs
5000
Flexi Deposit
2)The fixed deposit of a customer is held
in units of 1000 or so as prescribed by
the bank.In case of need the customer
can withdraw part amount of deposit
without closing the deposit.
In case of fore-closure,the deposit
would earn interest at rates applicable
for the period run without any penalty.
Flexi Deposit
Eg :If ‘A’ holds a deposit of Rs 10000 with
bank ‘ABC’ broken into units of 1000 for a
period of 6 months.Incase he withdraws Rs
700 after 3 months.
Cal: He will earn interest for Rs 10000 for 3
months.When he withdraws Rs 700 from his
account the deposit is broken and Rs 1000 is
moved to savings account.The remaining
9000 will earn interest for the remaining time
period.
Current Account
• What is Current account?
• A running account supporting unlimited
withdrawals and deposits
• A current account is meant for
convenience and not to save money
Facilities offered for current
account
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Unlimited Withdrawal and Deposit
Unlimited Cheque book
Demand Drafts and Payorders
Funds Transfer ( Local or Anywhere)
Collection of Cheques/ Drafts
Statements,Advices, Daily statement by e-mail
Cash withdrawal and Deposits
Multicity Cheque payment facility
Anywhere Banking facility
Doorstep Banking - Pick up and delivery of Currency / Cheque
Mobile Banking
STANDING INSTRUCTIONS
• STANDING INSTRUCTIONS
Standing instructions can be given to
the Bank for transfer/remittance of funds
from one account to other account/s
maintained in the same branch, any
other branch of the Bank or any other
bank or any other third party
Advances
• An advance is a credit facility provided by the
bank to its customers. It differs from loan in the
sense that loans may be granted for longer period,
but advances are normally granted for a short
period of time. Further the purpose of granting
advances is to meet the day-to-day requirements
of business. The rate of interest charged on
advances varies from bank to bank.Interest is
charged only on the amount withdrawn and not on
the sanctioned amount.
Advances
• Bank has a very wide bouquet of
types of credit facilities which can
be tailor-made to suit customer
specific requirements. In a
nutshell, the Bank offers :
Types of Advances
• Cash Credit
• Over draft
• Discounting of bills
Cash Credit
• Cash credit is an arrangement whereby the
bank allows the borrower to draw amount
upto a specified limit. The amount is
credited to the account of the customer. The
customer can withdraw this amount as and
when he requires. Interest is charged on the
amount actually withdrawn. Cash Credit is
granted as per terms and conditions agreed
with the customers.
Overdraft
• Overdraft is also a credit facility granted by
bank. A customer who has a current account
with the bank is allowed to withdraw more
than the amount of credit balance in his
account.It is a temporary arrangement.
Overdraft facility with a specified limit may
be allowed either on the security of assets,
or on personal security, or both
Discounting of Bills
• Banks provide short-term finance by
discounting bills, that is, making payment
of the amount before the due date of the
bills after deducting a certain rate of
discount. The party gets the funds without
waiting for the date of maturity of the bills.
In case any bill is dishonoured on the due
date, the bank can recover the amount from
the customer.
Advances
• What is the minimum & maximum period for which
customer can avail advance from the Bank?
• The Minimum period for which an advance may be sanctioned
starts is one day. The maximum period for which an advance
can be sanctioned depends upon:-
• The Debt Service Capacity of the borrower reckoned from the
cash flow from the business operations; and,
• The purpose of the advance
Cycle of Operative account
• Origination
• Service
• Closure
Application
Operative Account Origination
Scrutiny &
Account opening &
verification
maintenance
Applicant should
submit
Verify and
check validity
Account opening
of documents
form
provided
Address proof
Communication
Welcomepack
Account opened
Cheque book printing
Mapping of signature
With debit card,
cheque book,
details of
Account sent
to customer
Identity proof
Self cheque or
cash for minimum
balance
SERVICING OPERATIVE ACCOUNT
Transactions
Fee & Charges
Interest
Reportin
g
Customer
Relations
Deposit Withdrawal
Frequent Withdrawals
Balances
overdraws
Periodic
account
statements
Transaction
profile
statement
Transfers
Issue of Cheque
books/ Account
statements
Standing Instructions
Duplicate Records
Bill payments
Returned Cheques
Issue of cheque books
Cancellation of Drafts
Account statements
Account closure
Addition/ Changes to
account holders
Addition/ Changes to
groups
Regulatory
Reporting
CLOSURE OF OPERATIVE ACCOUNT
Request
Processing
Administration
Closure
Customer request
for closure
Striking balance
Collection of unused
cheques
Closing of
accounts
Banks decision to
close
Status on
- Standing
instructions
- Uncleared cheques
inward
- Uncleared cheques
outward
Cancellation of
authorization
- ATM
- Phone
- Online
Repayment
of balance
Transfer to Nonoperative account
Special conditions
- Lien
- Approvals
Fee/ Charges
Removal of
accounts
Non operating account
• Deposits
• Loans
Deposit Services
They can be broadly classified as
• Fixed deposit
• Recurring deposit
Deposit Services
The products or features offered by
banks under these categories varies
from bank to bank
Mentioned below are a few of such
products offered by banks
Fixed Deposits
Fixed Deposits impose a Simple Interest
Formula on the Principle amount
deposited by the customer.
Interest can be paid Quarterly, SemiAnnually or Annually as req. by customer.
Recurring/Monthly Deposits
• Every month the Customer Pays the
Installment which is fixed in the beginning.
• For Preclosure a Penalty of 1% -2 %is
Charged.
Cycle of Non operating
Account
• Origination
• Servicing
• Closure
Application
Non Operative Account Origination
Scrutiny &
Opening Of
verification
Provide the following
Request form
Deposit
Validity of
documents
Certifcate of
Deposit opened,details
Of maturity maintained
Proof of indentity
Cheque or cash for
On system
Amount to be
Deposited
PAN details or
Form 60 for
Communication
Deposit
Despatched
Stating maturity
Date ,rate of
If existing customer
And holds account,
Beyond deposit of
Mapped to customer
Rs 50000
Savings account
Interest and
Amount to be
Earned end of
tenure
Non Operative Account Servicing
Transctions
Fee & Charges
Interest
Collect monthly deposit
For recurring deposit
Movement for funds
To savings account
Loss of interest
Quarterly interest
Monthly
Accrued to account
Statements with
For recurring deposit
Interest
Calculations
For reverse sweep
For fixed deposit
Withdraw of funds
Loss of interest
From
Issue of duplicate
Deposit receipt
Reporting
quarterly,semi
Annually or annually
Nominal charge
Non Operative Account Closure
Request
On Maturity
Processing
If no confirmation
Received from
Customer
The deposit gets
Preclosure
Payment
The principal plus
Closure
Certificate of
Interest earned during Deposit recovered
The tenure
And deposit closed
Renewed for another
By issuing demand
Same tenure
draft
Recover penalty
Certificate of
Fee for recurring
Deposit
Principal plus interest Deposit recovered
For the period when
And deposit closed
The funds where held Issuing demand
Renew
Change maturity date
Pay interest or reinvestdraft
On system
As desired by customer
LOANS AND ADVANCES
HOME LOAN
• AUTO LOAN
1. TWO-WHEELER LOAN
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2. CAR LOAN
•
• EDUCATION LOAN
• PERSONAL LOAN
• CONSUMER LOAN
• LOAN AGAINST SECURITIES
- DEPOSITS, SHARES
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Housing loan
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Housing loans are referred to the loans
provided by the banks for the following
purposes
For construction/purchase of flat/house
Repairs/Renovation of existing
house/flat
Purchase of flat/house resold
Purchase of land
Home Loan
The criteria for providing housing loans
differs from bank to bank.
The eligibility is mainly for Individuals
Salaried class,businessmen,
professionals with minimum period of
service
Age – Upto 50-55 years
Housing loan sanction
The loan amount will be calculated based on the
value of property the customer is going to buy and
also based on the earnings of the customer.
The loan amount would be 36 times gross salary or
60 times net salary of the customer which ever is
higher.Spouse income also considered
Margin: 15% on total project cost ( cost of land +
cost of construction)
30% - For repairs
Housing loan Interest Rate
There are 2 options
• Fixed rate
• Floating rate
The rate also varies with the tenure
selected by customer.There is
maximum of 20 years tenure offered by
banks
Housing loan Repayment
• Repayment period:
For purchase/ construction: 20 years EMI.
For repairs/ renovation
: 10 years EMI.
• Processing Fee:
0.5% to 1% from bank to bank.
• Security:
Mortgage of house to be purchased.
Cycle of a housing loan
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Origination
Verification
Sanction
Disbursal
Closure
ORIGNIATION OF HOUSING LOAN
Application
Eligibility Criteria
Margin
Documentation
•You must be at least 21
If customer has identified
property to Be purchased
years of age when the loan
is sanctioned.
Customer contribution
Submit housing loan application •The loan must terminate
•15% for new house/ flat
before or when you turn •20% for old house/ flat
•20% for repairs and
65 years of age or before
renovation
retirement, whichever is
earlier.
•You must be employed
or self-employed with a
regular source of income
Details on next
slide
Documents for housing loan origination
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Passport size photograph
Proof of residence
(This applies only to new or non-bank customers, and could be either a PAN identity card,
voter identification card or passport)
Sale Deed/ Agreement of Sale
Bank account Statement or passbook, for the last six months
For employees or people in service, you also need to provide:
Salary certificate and other information, if any, about your repayment capacity
Form 16 or a copy of the Income Tax Returns for the last 2 years
For self employed and other IT assessees:
IT returns for the last 3 years· Receipts of advance tax paid
Any other information about your repayment capacity
In addition to the above mandatory documents, you are also required to furnish one or more
of the following documents wherever applicable:·
Letter of allotment from the housing board or society
Copy of the approved plan
Permission for construction
Copy of the relative order in the case of conversion of agricultural land. (not required where
the house/flat has been constructed by an approved builder)
Documents for Housing loan
• Additional documents required for an old
house/flat :
• In the case of an old existing house, you will
need to get a valuation certificate from
approved valuers as well as a certificate from
a government approved architect /structural
engineer regarding the condition of the
flat/house as well as its remaining life.
Housing loan Origination
Customers who have not identified the property to be
bought :
In-principle approval
Banks give in-principle approvals based on the
customer income and capacity to repay, to enable
them to identify a house/ flat with full confidence.
All loans are at the sole discretion of the Bank.
Customer needs to identify the property within 3
months from the loan being sanctioned
Verification & Processing of
Housing loan
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Stages in verification & processing
Scrutiny of the application and
documents
Verification
Processing charges
Sanctioning of loan
Disbursal of loan
Housing loan Verification & Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit
Verify the property
Collect Post dated
Demand draft is
worthiness
To ascertain the
Cheques,ECS,
Issued to the
of customer
Market value
Standing instruction
Builder or seller of
from Customer
The property after
for EMI
Default
Verify the validity of
documents
Collect 0.5-1%
Processing charge
blacklisted
The customer
Shows proof for
his margin
80-90% of the value
Of the property
Any other loans held
Ascertained by the
Bank is sanctioned
Contribution
Closure of Housing Loan
Request
Loan tenure completed
Customer defaults payments and bank fore
closes the Loan
Closure
Loan account closed and documents pertaining to
The property returned to the customer.
Bank has the authority to sell the property and to
Recover its dues from the sale proceeds.Amount
Left after bank dues are covered is returned back
To customer and loan account is closed ,post dated
Cheques returned
Customer request for foreclosure
Recover complete dues from customer and return
The property documents.Bank charge a foreclosure
Charge and closed loan account
Customer request another bank to take
Over the existing housing loan
Banks receive the outstanding balance from another
Bank taking over the loan and returns the property
Document to the bank taking over the loan
Foreclosure charges are paid by the bank taking over
The loan.Loan is closed once all settlements are done
Auto Loan
Auto loan are provided by the banks to
Customer for the following purposes
To buy :
• A new car, jeep or Multi Utility Vehicles
(MUVs) (any make or model)
• An old car / jeep / MUV (not more than
4 years old). (any make or model)
Eligibility for Auto loan
• A Permanent employee of State/Central
Government, Public Sector Undertaking,
Private company or a reputed establishment
or
• A Professionals or self-employed individual
who is an income tax assessee or
• A Person engaged in agriculture and allied
activities.
Auto loan amount criteria
• There is no upper limit for the amount of a car
loan. It is limited only by your repaying
capacity. A maximum loan amount of 2 times
the net annual income can be sanctioned. If
married, your spouse's income could also be
considered provided the spouse guarantees
the loan
• The loan amount includes finance for onetime road tax, registration and insurance
Margin for Auto loan
• Margin
• New vehicles10-15% when loan is upto Rs.4
lacs
• 15-20% when loan exceeds Rs.4 lacs
• Old vehicles 20-30%for vehicles upto 2 years
old
• 30-40% for vehicles 2-4 years old
Repayment options
• Repayment period for new vehicles :
Maximum of 84 months
• Repayment period for old vehicles :
Maximum 60 months for vehicles upto 2
years old ; Maximum 36 for vehicles
which are 2-4 years old
• You may prepay at will with no
prepayment penalty whatsoever.
Interest Rates on Auto Loans
2 options
• Fixed rate
• Floating rate
Fixed Rate of Interest
• In the case of a fixed rate loan, the
interest rate on the loan will remain
fixed through the entire tenure of the
loan
Floating Rate of Interest
• In the case of a floating rate loan, the
interest rate could decline or rise in line
with the changes in the Bank's Medium
Term Lending Rate
Loan Terms
Hypothecation: When a property is
hypothecated to a bank it means the original
documents pertaining to the property will be
held with the bank until the loan amount is
completely repaid by the customer.
An
authority given to a banker, usually a letter of
hypothecation to enable the bank to sell
goods that have been pledged to them as
security for loan.
Life cycle of a Auto Loan
• Origination
• Process & Sanction
• Recovery & closure
ORIGNIATION OF AUTO LOAN
Application
Eligibility Criteria
Margin
Documentation
Loan to Value of the vehice
Submit auto loan application
(LTV).
Age of the Borrower (There Customer contribution
New vehicle
is a minimum and
10-15 % upto 4 lacs
Maximum age limit).
15-20% above 4 lacs
Tenure of the Loan.
Employment Period
(balance years in service
for the person borrowing).
Collateral Requirements
(normally the vehicle for
which the loan is taken is
kept as a collateral with
the financier
Old vehicle
20-30% upto 2 yrs old
30-40% for 2-4 yrs old
Details on next
slide
Documentations
• The Documents required for a Salaried Individual a. Proof of Income - latest 2 attested salary slips with TDS
certificate/Form 16.
b. Proof of Residence - Ration Card/Driving License/Voter Icard/Electricity Bill/Insurance Policy.
c. Banking History - photocopies of the bank statement showing
last 3-months transactions.
d. Photographs.
e. Proof of Identity - Passport Copy/Voter's I-card/Driving
License/Employer's Card.
f. Signature verification from the bank.
Documentation
• The Documents required for a Self-Employed Individual
a. Balance sheet and P&L account for the last 2 years certified by
an Auditor.
b. Acknowledged copy of IT Returns for the last 2 years.
c. Proof of Residence - Ration Card/Driving License/Voter Icard/Electricity Bill/Insurance Policy/Telephone Bill.
d. Banking History - photocopies of the bank statement showing
last 3-months transactions.
e. Photographs.
f. Proof of Identity - Passport Copy/Voter's I-card/Driving
License/Employer's Card.
g. Signature verification from the bank.
h. Sole Proprietorship Declaration on the letterhead
Auto loan Verification & Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit
Verify the address
Collect Post dated
Demand draft is
worthiness
And office of
Cheques,ECS,
Issued to the
of customer
customer
Standing instruction
from Customer
seller of
The vehicle after
for EMI
Default
Verify the validity of
documents
Collect 0.5-1%
Processing charge
blacklisted
Shows proof for
his margin
Sanction 80-90% of
Any other loans held
The customer
The value of vehicle
Contribution
Closure of Auto Loan
Request
Loan tenure completed
Closure
Loan account closed and documents pertaining to
The vehicle returned to the customer.
Customer defaults payments and bank fore
closes the Loan
Bank has the authority to sell the vehicle and to
Recover its dues from the sale proceeds.Amount
Left after bank dues are covered is returned back
To customer and loan account is closed ,post dated
Cheques returned
Customer request for foreclosure
Recover complete dues from customer and return
The vehicle documents.Bank charge a foreclosure
Charge and closed loan account
Education loan
• These loans are specifically offered for the pursuit of
academics in recognized schools, colleges and
various other educational institutions, both in India
and abroad. You may avail of this loan facility to
meet:
Eligible Courses
• Graduation courses/ Post graduation courses/
Professional courses
• Other courses leading to diploma, degree etc.
conducted by colleges, universities approved by
UGC/ Government/ AICTE etc.
Education Loan
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Expenses considered for loan
Fees payable to college/school/hostel
Examination/Library/Laboratory fees
Purchase of Books/Equipment/Instruments/Uniforms
Caution Deposit/Building Fund/Refundable Deposit
Travel Expenses/Passage money for studies abroad
Purchase of computers considered necessary for
completion of course
• Cost of a Two-wheeler upto Rs. 50,000/-
Education Loan Amount
• Loan Amount
• For studies in India, maximum Rs. 10 lacs
• Studies abroad, maximum Rs. 20 lacs
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Margin
For loans up to Rs.4.0 lacs : No Margin
For loans above Rs.4.0 lacs: The Margins are as
under:
In the case of Education in India, the margin is 5%
In the case of Education Abroad, the margin is 15%
No processing fee/ upfront charges
Education loan Interest
Loans up to Rs.4 lakh may be advanced at
interest rate not exceeding PLR of the
bank. Above Rs.4 lakh, the interest rate
may be PLR+1%
Repayment method
• The repayment would begin one year after
the course period or six months after you get
a job, whichever is earlier. You are expected
to pay a minimum amount equivalent to the
EMI on a monthly basis. However, you can
choose to pay more than the EMI, and we do
not charge any prepayment penalty.
ORIGNIATION OF EDUCATION LOAN
Application
Eligibility Criteria
Margin
Documentation
Should be an Indian National
Existing Customer
Submit form
Secured admission to
professional/ technical courses
through Entrance Test/
Customer contribution
Upto 4 lacs – No margin
Above 4 lacs- 5% india
15% abroad
Selection process
Secured admission to foreign
New Customer
Submit form
Provide guarantor details
university/ Institution
Details on next
slide
Education loan documents
•
You will need to furnish the following documents along with the completed
application form. Relevant information would relate to the guardian and the
student both, when the loan is jointly taken.
· Mark sheet of last qualifying examination for school and graduate studies in
India
· Proof of admission to the course
· Schedule of expenses for the course
· Copies of letter confirming scholarship, etc.
· Copies of foreign exchange permit, if applicable.
· 2 passport size photographs
· Statement of Bank account for the last six months of borrower
· Income tax assessment order not more than 2 years old
· Brief statement of assets and liabilities of borrower
If you are not an existing bank customer you would also need to establish your
identity and give proof of residence.
Education loan Verification & Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit
Verify the address
Collect Post dated
Demand draft is
worthiness
And office of
Cheques,ECS,
Issued to the
of customer /
Customer/guarantor
Standing instruction
Educational
from Customer
guarantor
for EMI
Verify the validity of
Default
blacklisted
Documents
No
Processing charge
Sanction loan based
On margin
Any other loans held
institute
Closure of Education Loan
Request
Loan tenure completed
Customer Request for foreclosure
Closure
Ensure all dues are recovered and account closed
No prepayment charges.Recover all dues and
Close customer account.Return post dated cheques
Personal loan
• To meet any kind of personal expenses,
e.g., marriage, family functions,
medical, educational, travel expenses,
etc.
Personal loan Eligibility
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A State/Central Govt. Employee, employee of public sector
undertaking/reputed profit making public limited company, reputed
institutions, MNC with a minimum service experience of 2 years.
A self employed engineer, doctor, architect, chartered accountant,
MBA, with a minimum 2 years standing. You should be 60 years of age
or less.
A Pensioner of PSU/Govt. (Central/State)/Public Sector Bank who has
taken premature voluntary retirement and is 60 years of age or less
Agents of insurance/KVP/Mutual funds etc. with 3-5 years standing who
are tax assesses and whose gross annual income exceeds Rs. 2 lacs.
Traders, who have cash flows to repay the loans and can provide
adequate tangible collateral security. They should restrict their banking
requirements to the branch where the loan is proposed to be taken.
Personal Loan amount
•
Loan Amount
Your personal loan limit would be determined by your income and
repayment capacity.
•
Minimum : Rs.24,000/Maximum : 12 times Net Monthly Income for salaried individuals and
pensioners and 1 year's net annual income in case of self employed
professionals with the under noted ceilings; Additionally, your spouse's
income can be considered in calculating the loan amount provided
he/she guarantees the loan or the loan is taken jointly.
Salaried individuals and self employed professionals : Rs.2.50 lacs
(Rs.5.0 lacs in select Metros and can be further increased to Rs.10.0
lacs under certain conditions)
For pensioners : Rs.1.5 lacs
For Traders : Rs.1.0 lac
Documents Required
• Documents Required
• Important documents to be furnished while opening a Personal
Loan Account:
For existing bank customers:
• Passport size photograph.
From salaried individuals
• Latest salary slip and Form 16
From Self-employed individuals and Professionals
• IT returns for the last two financial years,
• Proof of Professional Qualification : Copy of highest
professionals degree held
• Proof of official address.This can include shop and
establishment certificate/Lease deed/Telephone Bill.
Repayment
• The loan is repayable in 48 EMI. You are
allowed to pay more than the EMI if you wish
to, without attracting any prepayment penalty.
Processing Fee :
• Processing charges are 1 per cent of the loan
amount. This is amongst the lowest fees in
the industry. Processing fees have to be paid
upfront. There are no hidden costs or other
administrative charges
ORIGNIATION OF PERSONAL LOAN
Application
Existing Customer
Eligibility Criteria
Salaried Individuals
Self Employed Individuals
Submit form
New Customer
Submit form
Provide guarantor details
Address proof
Salary proof
Documentation
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9.
10.
11.
12.
For
1.
2.
3.
4.
5.
Salaried Individuals
Application Form
Photograph
Proof of date of birth
Proof of Residence
Salary Slip for last few months
Proof of work experience
Bank Statement for last few months (where
the salary is credited or deposited)
Form 16
Signature Verification
Upfront Processing Fee Cheque (in case of some
lenders)
Self-Employed Individuals
Application Form
Photograph
Proof of date of birth
Proof of Residence
Profit and Loss account and Balance Sheet
attested by Chartered Account
6
Bank Statement for last few months
7
Income Tax Return
8
Signature Verification
9
Upfront Processing Fee Cheque
10
(in case of some lenders)
Personal loan Verification & Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit
Verify the address
Collect Post dated
Demand draft is
worthiness
And office of
Cheques,ECS,
Issued to customer
of customer
Customer
Standing instruction
from Customer
for EMI
Verify the validity of
Default
blacklisted
Existing Customer
Documents
Processing charge
Closure of Personal Loan
Request
Loan tenure completed
Customer Request for foreclosure
Closure
Ensure all dues are recovered and account closed
Recover all dues and prepayment charges
Close customer account.Return post dated cheques
Consumer Loan
• PURPOSE: For purchasing consumer
durables like TV, VCR, Washing
Machine, AC, furniture etc.
• Loan Amount: Calculated at certain
times of monthly salary.
Consumer Loan
• Margin: 15%.
• Security: Hypothecation of
articles/equipments purchased.
• Repayment:
Equated monthly instalments.
Max. period upto 60 months.
Loan against Deposit
• Purpose: For meeting educational/
consumption/other expenses.
• Loan amount: 85% on the interest
accrued value of the deposit.
• Repayment: Upto the maturity date of
the deposit in instalments. If not paid
fully, the amount due will be adjusted
from the maturity proceeds.
Loan against Securities
Leverage your investments in shares,
debentures, public sector bonds and
Government securities for loans to meet
unforeseen expenses!
Avail of loans up to Rs.20.0 lacs against your
shares/debentures to enable you to meet
contingencies, personal needs or even for
subscribing to rights or new issue of shares.
Loan Against Securities
•
•
•
•
•
•
Margin
You will need to provide a margin amount of 50% of the prevailing market prices
of the shares/ non-convertible debentures be in
Documents Required
You will be required to submit a declaration indicating :
Details of loans availed from other banks/ branches for acquiring shares/
debentures.
Details of loans availed from other banks/ branches against security of shares/
debentures
g offered as security
Loan against securities
• Purpose
• For meeting contingencies and needs of
personal nature. Loan will be permitted for
subscribing to rights or new issue of shares /
debentures against the security of existing
shares / debentures. Loan will not be
sanctioned for (i) speculative purposes (ii)
inter-corporate investments or (iii) acquiring
controlling interest in company / companies.
Loans against Securities
• Repayment Schedule :
• To be liquidated in maximum period of
30 months through a suitable reducing
DP programme.
• In case of a default or if the outstanding
is over Rs.20.0 lacs, the
shares/debentures will be transferred in
the name of the Bank.
Loan Against Securities
• Essential Parameters for acceptance
of shares as security
i)The equity shares and debentures offered as security should be fully paid.
Preference shares will not be acceptable as security(ii)The shares/ debentures
offered as security must be in demat form.(iii)The share/ debenture should be of
a company listed in BSE 100 Index, except those of SBI (list of BSE 100 Index
companies is available on www.bseindia.com).(iv)The market price of the
security should not have fallen below par for preceding 52 weeks.(v)The market
price of the security should not be as variance with the arithmetical average of
preceding 52 weeks high and low by more than 25% in downward direction.vi)(
P/E ratio of the company should not exceed 40 as published in Economic Times.
In case P/E ratio is not available the shares/ debentures of the company should
not be accepted as security. (vii)The total number of shares of the company
traded on NSE and BSE should exceed 25000 on the day of financing and on
each preceding 2 days.(viii)Security where the market price 52 week high is 4
times of the 52 week low should not be accepted.
Loan against Securities
•
Documentation
*Application for overdraft limit against security of shares/ debentures indicating
details of shares (i.e. ISIN of the company whose shares/ debenture are offered
as security, number of shares/ debenture offered as security) along with
borrowers DP ID and DP account number.*Applicant has to submit consent
letter agreeing to regularize the account/ replenish the margin shortfall, on
account of adverse market price variation, immediately on receipt of notice from
the branch. Applicant will also submit consent to the condition that in the event
of his failure to regularize the account immediately, Bank has the right to get the
security transferred in its name and arrange for its sale, without any further
reference to him. The Bank shall exercise this option without prejudice to its
rights to recover the dues by other means also.*DP Note and DP Delivery
letter.*Irrevocable Letter of Undertaking addressed to the Bank signed by all
holders of the shares.*Dividend collection mandate(s).*Either or Survivorship
Letter(if applicable).
Miscellaneous Services
•
•
•
•
•
•
•
Safe Deposit lockers
Credit Cards
Cheque collection
Remittance facility
Internet Banking
Phone banking
Demat Facilities
Safe deposit lockers
•
The facility of Safe Deposit Lockers is an ancillary service offered by the Bank. The Bank's
branches offering this facility will indicate/display this information.
The major aspects governing the services are :
•
•
•
•
•
•
•
•
•
A locker may be hired by an individual ( not minor), firms, limited companies, specified
associations and societies etc.
Nomination facility is available to individual hirer of Safe Deposit Locker.
Loss of key should be immediately informed to the Branch.
Lockers are available in different sizes.
Lockers are rented out for a minimum period of one year. Rent is payable in advance. In
case of overdue rent, the Bank will charge penalty as decided from time to time.
With standing instruction, the rent may be paid from the deposit account of the hirer.
The Bank will hire locker only to properly introduced persons.
The Bank reserves right to break open the locker if the rent is not paid inspite of giving
notices as per the Bank rules and recover charges thereof.
The locker can be surrendered by the hirers as indicated in Memorandum of Letting.
Internet Banking
• Internet Banking" refers to the internet banking service offered
by the Bank to the user including services such as enquiry about
balance in the Account, details about transactions in the
Account(s), statement of Account, transfer of funds and any
other service as the Bank may decide to provide from time to
time through internet.
• The customer will be given a user id and password at the time of
opening his account.
This id & password enables the customer to access his bank
account through the bank website on the internet.
Phone Banking
• The customer will also be given a specific
telephone code at the time of account
opening.
• With this code the customer can access his
bank account by calling the help line phone
number to know his bank balance, make bill
payments,account to account transfer within
the same bank,request for Demand
draft,cheque books etc
DEMAT SERVICES
• Depository Participant Services
Depository is an organization, which holds your securities in the form of
electronic book entries. This will be done at the request of shareholders
through the medium of a Depository Participant (DP). If an investor
wants the services of a Depository, he has to open an account with the
DP. Further, a depository transfers securities as per the investor's
instructions without actually handling securities, through the electronic
mode. The DP will maintain the account balances of securities bought
and sold by the investor from time to time. The DP will also give the
investor a statement of holdings, which is similar to a passbook.
DEMAT ACCOUNT
• Depository Account Opening
An investor needs a satisfactory introduction
and identification to open a Demat account
with our DP.Every account holder in our Bank
can open a Demat account. An investor has
to fill up an Account Opening Form and
execute an agreement with the DP for
opening a Demat account.
DEMAT SERVICES
• Benefits of holding Shares in
Electronic form
Transactions take place much faster in electronic trading compared to a 30-60 days
settlement cycle that is presently experienced. Transfer of shares is effected within a few
days after payment is made.
* Elimination of bad deliveries and all risks associated with physical certificate such as loss,
theft, mutilation, forgery, etc.
* Easy liquidity.
* No stamp duty on transfer.
* No postage/courier charges.
* Faster disbursement of corporate benefits like rights, bonus, etc.
* Facility for creating charge on dematerialized shares for granting loans and advances
against shares
DEMAT ACCOUNT
• Account opening
An investor (investors are called Beneficial owners in Depository system)
intending to hold securities in the electronic form in the Depository system will
have to open an account with a DP of NSDL. The investor has to fill up an
account opening form and sign an Agreement. The investor can open multiple
accounts with same DP as also with different DPs. The DP will provide the
investor a statement of holdings and transactions. In case the shares are held in
joint names then the account is to be opened in the same order of names.
Separate account needs to be opened for each combination of names
Dematerialisation/Remateria
lisation
Dematerialisation is the process by which an investor gets his physical
certificates converted into electronic form and reflected in his account with the
DP.
* One has to just fill in Dematerialisation Request Form available with his DP.
Submit his share certificates along with the above form (legend like 'Surrendered
for Dematerialisation' should be written on the face of each certificate before its
submission for Dematerialisation). The beneficial owner's account will be
credited with in 15 days and he will be informed by the DP.
* In one whishes to convert his electronic shares back to physical shares at a
later stage, he can still do so by applying for rematerialisation through a
Rematerialisation Request Form available with his DP. The new rematerialized
certificates with new range of certificate number may use existing Folio number
or a new folio number for the certificates.
Electronic Trading
Trading in the Depository mode takes place in the following manner:
* If the investor wants to sell his shares, he has to place an order with his broker
and give a "Delivery Instruction" to his DP. The DP will debit his account with the
number of shares sold by him.
* If one wants to buy shares, he is to inform his broker about his Depository
Account Number so that the shares bought by him are credited into his account.
* Payment for the electronic shares bought or sold is to be made in the same
way as in the case of physical securities.
* The shares one buys are transferred in his name promptly after he makes the
payment.
* No formalities of filling transfer deeds, affixing stamps and applying to the
Company for registering the shares in Beneficial owner's name are required to
be observed, neither there is any fear of bad delivery.