1. LONG TERM LOAN POLICY Sonam Jambhulkar 874, BBA LLB(hons.)

2. LONG TERM LOAN According to investopedia: Loans and financial obligations lasting over one year. Long-term debt for a company would include any financing or leasing obligations that are to come due in a greater than 12- month period. Such obligations would include company bond issues or long-term leases that have been capitalized on a firm's balance sheet These loans are commonly set for more than three years. Most are between three and 10 years, and some run for as long as 20 years. Long-term loans are collateralized by a business's assets and typically require quarterly or monthly payments derived from profits or cash flow. These loans usually carry wording that limits the amount of additional financial commitments the business may take on and they sometimes require that a certain amount of profit be set-aside to repay the loan. Long-term loans carry a term of more than 10 years and are used to finance the acquisition, construction and development of land and buildings.

3. MEANS OF PAYMENT OF LONG TERM LOAN There are at least three payments options to consider for the repayment of intermediate- and long-term loans: 1) Fixed, Equal Payments: A fixed amount covering principal and interest charges is paid at stipulated amortization dates. This fixed amount is calculated based on specified interest rate and maturity (term) of the loan. Thus, loan amortizations are fixed and equal over the specified term of the loan. 2) Fixed Principal Payments: Under this scheme, the original loan amount is repaid in equal principal installment payments over the life of the loan. Interest charges are then calculated based on declining principal balances. Farm borrowers must evaluate their liquidity and cash flow conditions in considering this payment option. 3) Balloon Payment: These are relatively shorter-term loans. Under this arrangement, initial payments are usually based on a longer amortization period (such as 20 years) under the assumption that at the end of a certain shorter period (for example, after the first five years of the term) the loan with either be paid off, renewed or re-financed.

4. SHAMRAO VITTHAL COOPERATIVE BANK LTD.

5. Introduction Founded in 1906 in Vadola, Maharashtra. Founder: Rao Bahadur Shripad Subbarao Talmaki Present Chairman: Shri Suresh S. Hemmady Managing Director: Shrinivas D. Joshi It started with the motive that Bank works for betterment of the economic, moral and material well- being of the Community. Its a multistate Scheduled Bank. Operative in Maharashtra, Karnataka, Andhra Pradesh, Tamil Nadu , Gujarat, Delhi and Goa . Currently operating through 108 Branches. Urban Cooperative bank.

6. Vision and Mission It was set up with the primary objective of assisting the less fortunate members of the community in its economic enterprises, to encourage savings and to create funds for providing financial aid to deserving members. It rests on the pillars of thrift, fellowship, character, accommodation and the selfless service of all individuals and organisations who wish to help themselves progress.

7. LONG TERM LOAN POLICY

8. Term Loan Who can Borrow: Firm engaged in trade, commerce & business professionals, proprietary firms, partnership firms, companies Type of Loan: Term Loan Purpose: Business Transactions. Purchase of Land & Building, Machinery, Furniture etc. and construction of factory. Security: Mortgage of Land & Building, Hyp. of Plant & Machinery, Furniture & Fixtures, Electrical fittings Margin: 25 - 40 % of the project cost / Purchase cost Repayment: EMI based upto 7 years

9. VARIOUS LOAN SCHEMES OF SHAMRAO VITTHAL BANK

10. Various kinds of loans : SV Good Homz SV Office Mortgage SV Vidya Sahay SV Hello Doctor SV Gold Power SV Stock Gain Group Loans SV Personal Loans Loans Against Govt Securities Retail Mortgage Loans SV Vehicle Loans SV Life Style Finanz Overdraft againts salary Regular Plus

11. Regular Plus A new scheme under the name Regular Plus i.e a Term Loan to existing customers of our bank who have availed Housing Loan / SVC office Mortgage Loan & are regular in their repayments. The aforesaid scheme is being launched with basic and primary idea to fulfill urgent & unforeseen needs of our existing valued patrons/customers. DETAILS OF THE SCHEME Borrower- Existing customers of our bank who have availed Housing / SVC Office Mortgage Loans & repayment in these accounts are regular for the last 3 years. Limit- Maximum Rs.5,00,000/-. Processing charges: 0.50% + Service Tax Legal & Documentation Charges On actual basis Purpose: For any legitimate purpose but not for speculative activities. Security: Extension / Linkage of charge over existing

12. Margin: Overall 40% On the fare Valuation of the immovable security (including margins of existing Housing / SVC Office Mortgage loans) at the time of considering such loan. Repayment Schedule / Tenure: Maximum 60 months (however the tenure of this loan should not exceed the due date of earlier housing / svc office mortgage loan for which the immovable security is primary security) Prerequisites Application form & latest photographs of borrowers Latest income papers Latest KYC documents Latest Valuation report from banks approved valuer Repayment in the existing loan accounts should be regular for last 3 years. NOC from the guarantor/s (if any) for the existing housing / SVC Mortgage. Document to confirm the end use of bank finance,

13. SV GOOD HOMZ Who can Borrow: Individuals (singly/Jointly) Purpose : Purchase of flat, construction of new houses bungalows on ownership basisLimit Max. Limit: Rs.70.00 lacs Security: Mortgage of Residential premises to be purchased Margin: 20% of Agreement value Repayment: Max 240 months Processing Fees: 0.65% of the loan amount + ST (Minimum of Rs.5000/- + ST) Legal & Documentation Charges: On Actual Basis Prerequisites Atleast 21 years of age should be an income tax assessee. Individuals employed/engaged in business/Professionals having a fair repaying capacity to justify servicing of monthly installments. Income Tax Returns for the last three years along with computation of income. Copies of the relevant documents of the property to be purchased / constructed.

14. SV OFFICE MORTGAGE Who can Borrow: People engaged in trade, commerce & business professionals, proprietary firms, partnership firms, companies & individuals with high net worth Purpose: To meet credit needs of the trade, commercial activity, other general business, Profession as also for their bonafide requirements Limit: Max. Limit Rs.200.00 lacs Security: Mortgage of commercial premises to be purchased Margin: 20% of Agreement value Repayment :Repayment 5 years 10 years by way of EMIs. (moratorium available) Processing Fees: 0.50% to 1% of the loan amount Plus S.T.(Minimum Rs.5000/- + ST) Prerequisites: Income Tax Returns for the last three years along with computation of income of Individuals/Partners/Directors. Audited Financial Statements for the last three years of the firm/companies Copies of the relevant documents of the property to be

15. SV VIDYA SAHAY Who can Borrow: Loans to be given to Parents/Guardian. Schemes open to graduates & undergraduates to acquire skill in any educational discipline and/or vocation from any of the Govt. recognized College / Educational Institute of repute in India or abroad. Purpose: To acquire skills in any educational discipline.Max . Finance available: Rs.10.00 lacs For domestic course Rs.20.00 lacs For International course Margin: 10% to 25% Repayment: Max 84 months (Moratorium Available) Processing Fees: 1% loan amount Plus S.T. (minimum Rs.5,000/- +ST) Prerequisites : A letter from the Head of the Institute admitting the student for the course with schedule of fees. Parents/Guardians having regular source of income to justify servicing monthly interest and installments. One Guarantor OR 50% of the loan amount in the form of Surrender Value of LIC Policy and/or face value of NSC KVP as Collateral Security in case the loan sought is upto Rs.5.00 lacs.

16. SV HELLO DOCTOR Who can Borrow: Individuals/Firms of Medical Professionals Purpose: Acquisition or construction of own Consulting Room, Specialty Clinic, Polyclinic, Nursing Home or even a Hospital. This would also include any Expansion or renovation plan for existing set up. Finance Available Term Loan of Rs.200.00 lacs (Max Limit) against mortgage of premises & hypothecation of equipments/vehicles to be purchased. Margin: 20%-25% ON LAND & BLDG, 15%-25% ON PLANT & MACHINERY/EQUIPMENTS ETC 10% ON CARS Repayment ScheduleFor Equipments/Premises 60 to 84 months For Premises 120 months (Max) For Car 36 to 60 monthsProcessing Fees 0.50% Plus S.T. (minimum Rs.5,000/- + Prerequisites: Qualified Medical Practitioner with Good Experience. Income Tax Returns for the last three years along with computation of income.

17. SVC GOLD POWER Who can Borrow: Individual (Singly/jointly) Purpose: For any legitimate purposes not for speculative purposeMax .Finance availableRs.10.00 lacs Security: Pledge of Gold ornaments & Jewellery Margin: 40% on fair valuation of the security to be pledged i.e. Pledge of Security of Gold Ornaments & Jewellery Repayment: Upto Rs.1.00 lac (Lumsum) Above Rs.1.00 lac (EMI) To be paid in twelve months and interest to be paid as and when applied. Appraisal Charges: 0.50% of the loan amount subject to minimum of Rs..750/- plus ST as applicable. Prerequisites Application form along with KYC documents, Income Proof of the applicant/s Legitimate ownership of pledged security in the name(s)the applicant(s) is to be substantiated by appropriate Declaration/Affidavit . Pledge of Gold ornaments & Jewellery (preferably with BIS > HALL MARK) minimum purity of 22 Carats. Valuation of the ornaments of the gold to be pledged to be done by

18. GROUP LOANS Who can Borrow: Individuals earning salary in reputed organization Purpose: Any personal use Max. Limit: Rs.5.00 lacs Security: Companys undertaking Guarantors: Two guarantors (Cross Guarantee within a group of three) Repayment: 60 months Attractive Features: Competitive Rate on daily reducing. No Prepayment penalty Prerequisites: Minimum service of 3 years & Maximum completed age at the time of application should not exceed 51 years. Companys undertaking for direct deduction of EMI from the salary. Total deduction not to exceed 60%.

19. SV PERSONAL LOANS Who can Borrow: Individual Purpose: Personal needs such as Housing, Education, Medical Emergencies, Travel etc. Max .Finance available: Rs.5.00 lacs Guarantors: Two guarantors Repayment : 60 months Processing charges:1.50% of the loan amount plus ST Prerequisites: Income Tax returns for the last three years alongwith computation of income of the applicant and guarantors Confirmed employee in case of salaried person Compliance Of Kyc Norms

20. LOANS AGAINST GOVT.SECURITIES Who can Borrow: Individuals Purpose: To provide finance to meet urgent needs covering Childs education, medical emergencies, travel etc. Security : Pledge of NSCs, KVPs and Surrender value of LIC Policy Margin: 15% Type of Facility & Repayment In case of Overdraft Annual Review, In case of Term Loan- EMI Processing Charges 0.5% plus Prerequisites: Application form along with KYC documents &Income Proof NSCs to be atleast 2 years old. LIC Policy (Assignable) to be in force for minimum

21. RETAIL MORTGAGE LOANS Who can Borrow: Individuals Purpose: To offer instant solutions relating to business needs or for personal needs such as Childs education, medical emergencies, travel etc. Security: Commercial/Residential premises Margin: 35% - 40% on Market Value Loan Amount: Max. Limit RS.50.00 LACS Repayment Period: 5 to 7 years Processing Charges:1.00% plus ST (Minimum Rs.5,000/- +ST) Prerequisites Application form along with KYC documents &Income Proof Property to be mortgaged should be in the name of the borrower. Latest valuation report from banks approved valuer.

22. SV VEHICLE LOANS Who can Borrow: Individuals ,Firms, Companies Purpose: Convenient scheme for purchase of Cars. Margin: For personal use 10% (on Cost +Registration charges +Insurance) For commercial - 25% (on Cost +Registration charges + Insurance) Security: Hypothecation of Car to be purchased Repayment: Max 60 months Processing Charges: 1% plus ST Attractive Features: Competitive Rate on daily reducing. No Prepayment Prerequisites: Individuals employed/engaged in business/having professional income and sound financials. Invoice from the Authorized dealer.

23. SV LIFE STYLE FINANZ Who can Borrow: Individual Purpose: Renovation of existing flat, Purchase of Consumer Durables etc. Max. Finance available: Life Style Finance - Max. Limit of Rs.5.00 Lac Consumer Durable Max. Limit of Rs.3.00 Lac Sublimit of Life Style Finance Margin: 25% Repayment: 60 months Processing Charges: 1.50% of the loan amount plus ST Prerequisites Income Tax returns for the last three years along with computation of income of the applicant and guarantors Two Guarantors of good means and acceptable to the bank Collateral security: 25% of the loan amount in the form of SV of LIC policy /Face value of NSCs /KVP Statement of operative Bank a/c for the last one year. Total deduction no to exceed 60% of total gross income.

24. RATE OF INTEREST CHARGED AT LOAN Once loan is given the interest applied on the loan is calculated as per the term and type of the loan taken from the bank. The rate of interest charged by bank need to be as according to the regulations stated by RBI. RBI provides for different charges range for different kinds of bank for different types of bank, as different bank caters to different set of customers, hence the particular bank has to comply with the terms and conditions of the RBI guidelines. Banks itself decides for rate of interest to be charged on the loan taken from the bank. In accordance with RBI initiative to ease the interest rates and to align the Rate of Interest on our Bank's Retail Products with the market, management has

25. Different Rate of Interests Available at: http://www.svcbank.com/InterestRate_Loan1.aspx

26. Available at: http://www.svcbank.com/InterestRate_Loan1.aspx

27. Banks Growth

28. LONG TERM LOAN POLICY

29. Introduction of Syndicate Bank Syndicate Bank was established in 1925 in Udupi, Karnataka. Founders: Sri Upendra Ananth Pai, Sri Vaman Kudva and Dr.T M A Pai Chairman:Shri Sudhir Kumar Jain Their objective was primarily to extend financial assistance to the local weavers who were crippled by a crisis in the handloom industry through mobilising small savings from the community. Vision: To be bank of every Indian and a preferred bank partner globally. Mission: To achieve constant growth in business. To endeavour for inclusive development and ensure service excellence through excessive harnessing of human capital and technology.

30. Sectoral Weighted Average Lending Rates of Banks

31. Loans is available upto a maximum of 95% of the deposit amount depending on the length of the unexpired period of the deposit. Nomination facility available. The rates of interest on loan are as fixed by the Bank from time to time. The Syndicate Bank keeps changing its interest rates for long term loan policy . The maximum interest rate for fixed deposits will be 10.15% and 9.30% for deposits up to 399 days. Loan Available in Syndicate bank :

32. Comparative analysis of Loan schemes 0 2 4 6 8 10 12 14 16 18 20 Syndicate Shamrao Vitthal

33. Conclusion There is no much difference between the loan interest rates of both the banks. Shamrao vitthal bank provides various no. of loan schemes which are not provided syndicate bank. For the loan to be taken by a rural person, Shamrao vitthal bank provides for various different schemes, hence its better for rural person to take loan from a If personal loan has to be taken then any bank can be chosen as it provides more or less the same rate of interest on the deposits made. Its better to take home loan from syndicate bank. Its better to take gold loan from shamrao vitthal bank. For Loan to be made for long time, eg. For more than 1 year its is advisable to make deposit in Shamrao Vithal Cooperative Bank as it provides more rate of interest for longer period of time.

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