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8/6/2019 Credit Analysis of PL
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To Whomsoever It May Concern
This to certify that Mr. Siddharth Shrikant Raut is a student of
Vishwakarma Institute Of Management , PUNE .He has successfully carried
out his summer project titled CREDIT ANALYSIS OF PERSONAL
LOAN at ABN AMRO BANK , Pune from 20-05-2007 to 31-07-2007 ,in the
partial fulfillment of Masters in Business Administration Course of
University of Pune (2006 2008 ) .
He has worked under our guidance and directions. His work is found to be
good and complete in all respects .during the period we found him hard
working, sincere and loyal.
We wish him all the best for his Future.
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ACKNOWLEDGEMENT
Taking advantage of the occasion of submission of this project, I take an opportunity to
thank to all who were directly or indirectly involved in this project and without there
guidance, co-operation and support this would not have been possible.
I am highly obliged to Mr. Atul Sharma(Head Unsecured Asset) for
providing spark in the dark and providing us the opportunity to work in CREDIT
ANALYSIS of prestigious organization like ABN AMRO BANK I was fortunate to get
every sought of guidance which acted as a pole star for me.
I would also like to thankStaff of ABN AMRO BANK who has been backbone
of our project & for being Friend, Philosopher & Guide at every stage of the project.
There valuable suggestions, encouragement & patience are only responsible for seeing
this project through to completion.
I am proudly indebted to my project guide prof smita sovani mam for all her support and
Guidance towards the completion of the project.
.
It was their vision, my hard work & blessings of my parents, which made me
capable to complete this project successfully.
I would be failing in my duty if I do not acknowledge the gratitude to Dr Sharad joshi ,
director, V I M for his keen interest and valuable suggestions that went all the way
successful completion of this work.
Above all, I thank God for making this mortal venture possible.
Thanking All,
Siddharth Raut
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TABLE OF CONTENTS
CHAPTER 1 : INTRODUCTIONP.NO
EXECUTIVE SUMMARY....................................................................... 2
OBJECTIVE OF THE PROJECT 3
CHAPTER 2 : COMPANY PROFILE
ABN AMRO BANK 5
CORPORATE VALUES & MISSION ... 6
THREE BUSINESS UNITS 8
1. Consumer & commercial clients
2. Private clients & asset management
3. Wholesale clients
ABN AMRO BANK IN INDIA .. 11
ACHIEVEMENTS ... 12
PRODUCT AND SERVICES: OVERVIEW 13
CHAPTER 3 : PERSONAL LOAN
PERSONAL LOANS . 17
LOAN WITH INCOME STATEMENTS . 19
SELF EMPLOYED PROFFESSIONALS 21
SELF EMPLOYED BUSINESSMEN ... 22
LOAN WITHOUT INCOME STATEMENTS 23Credit cards
Surrogate loan
Relationship rewards for existing ABN AMRO customers
Personal loan top up schemes
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CHAPTER 1
INTRODUCTION
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EXECUTIVE SUMMARY
ABN AMRO BANK is one of the fast growing foreign banks in India. It has got veryimportant presence in the consumer as well as corporate sectors. I have undertaken a
Project titled CREDIT ANALYSIS OF PERSONAL LOAN
The main objective of the project was to know the loan proposal system of ABN AMRO
BANK. The analysis of any proposal consists of two parts
Internal
External
Internal is extract of internal analysis , consisting of calculation of tenor as per norms,calculation of eligibility with reference to income shown by an applicant, then ifapproved, to calculate the equated monthly installments & actual disbursement.
External analysis involves collection of documenry proofs regarding income profile,residence verification, repayment capacity and the end use.
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OBJECTIVE OF THE PROJECT
To find out exactly what is Credit Analysis is?
How it is to be done?
To find out what is the criteria to be considered by the banks to give loan for
various purposes.
How the processing is done on the applicants loan request & how it is to be
accepter or rejected.
To know and study various credit facilitities provided by the banks.
How the eligibility for granting for granting the loan is calculated.
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CHAPTER 2
COMPANY
PROFILE
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ABN AMRO Bank
On 29 March 1824 Kng Willem-I issued a royal decree creating the
Nederlandsche handel-Maatschappij (NHM) with the aim of reviving tradebetween the Netherlands and the Dutch East Indies. It started with the
Trade Company Edwards, Henriquez and Co., establish in 1856 in
Curacao whose main activity was trade and sea transportation. Several
years later the company began with money exchange-activities and little by
little became a bank of full value. In 1964, NHM merged with De
Twentsche Bank to form Algemene Bank Nederland (ABN), while
Amsterdamsche Bank and Rotterdamsche Bank joined to becomeAmsterdam-Rotterdam (AMRO) Bank. In 1991, these two banks merged
as ABN AMRO Bank. Today, ABN AMRO Ban has a powerful presence in
world markets, building on a tradition of stimulation international trade.
ABN AMRO Bank ranks 10th in Europe and 22nd in the world based
on tier 1 capital, with over 3,500 branches in more than 70 countries, a
staff of 110,000 full-time equivalents and total assets of EUR 597 billion
(as per end March 2003). The Bank is listed on several exchanges,
including the Amsterdam, London and New York Stock Exchanges.
Leadership in chosen markets is critical to ABN AMRO Bank's long-
team success as well. We have three principle clients segments:
Consumer and Commercial Clients, Wholesale Clients and Private Clients
and Asset Management. Within ABN AMRO Bank's organizational
structure, these are also core global Strategic Business Units. We strive to
maximize the value of each of these businesses and the synergies
between them.
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Corporate Values & Mission
Our Corporate Values provide the foundation for the bank's newly
introduced business principles. The bank formulated these Corporate
Values in 1997.
Integrity: Above al, we are committed to integrity in all that we do, always,
everywhere.
Teamwork: Teamwork is the essence of our ability to succeed as a trusted
preferred supplier of financial solutions to our clients. Our overriding loyalty
is to the good of the whole organization, requiring us all to learn from each
other and to share our skills and resources across organizational
boundaries for our client's benefit.
Respect: We respect every individual. We draw strength from equal
opportunity and diversity, at the same time supporting personal growth and
development. We value and we all benefit from the entrepreneurial spirit
of each individual.
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Professionalism: To be of service to our clients we are committed to the
highest standards of professionalism, pursuing innovation deploying
imagination, being open to new ideas and acting decisively and
consistently. We are determined to deliver outstanding quality so that ourrelationships with our clients will be long lasting and close.
Mission: ABN AMRO Bank's Mission is to create maximum economic
value for our shareholders through a constant relationship focus on the
financial services needs of our chosen client segments and a strictadherence to our financial targets.
Excellence of service to our clients and leadership in our chosen markets
are the reasons behind our long-term success.
We strictly follow a relationship approach, which keeps clients
requirements clearly in focus and provides excellent service through the
professionalism and motivation of our employees across the globe
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3. Wholesale Clients (WCS)
ABN AMRO Bank's traditional strength lies in its leadership inproviding a gamut of services to corporate and institutions, combing its
corporate and investment banking activities in one integrated business unit- Wholesale Clients. This is one of the largest Europe-based wholesalebanking businesses with around EUR 5 billion in annual revenue (as perend 2002), 10,000 clients, 20,000 staff and operations in over 45 countries.With a global network, specialists in all major industry sectors and a broadrange of products, ABN AMRO provides local and global expertise forcomplex cross-border deals. For our corporate and institutional clients weaim to be a leading provider of commercial and investment bankingproducts and services
By combining our sector expertise with in depth product knowledge in
both corporate and investment banking, We deliver a broad range of
benefits, including
Sector Expertise Integrated Product Offering Local Presence Financial strength
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ABN AMRO Bank in India
ABN AMRO Bank started its operations in India in 1920. till the early
1990's it was largely a bank catering to the diamond trade. It started
wholesale banking in 1995, the securities business and corporate finance
services soon after, and consumer banking in 1999. ABN AMRO Bank
took over the consumer banking business of Bank of America in 1999 as
part of a purchase agreement covering acquisition of this line of business
in India, Taiwan and Singapore. The consumer banking business of Bank
of America acquired by ABN AMRO Bank included consumer lending,
deposit mobilization, auto finance and mortgage activities. The acquisition
was in part of US$ 200 million deal signed between the two banks for
purchasing the consumer banking business by ABN AMRO Bank in these
three countries.
ABN AMRO Bank (India) has an 83 years long experience of the
Indian business scenario. Traditionally known as a strong "diamond-financing bank", it has turned into a bank providing a comprehensive range
of services with a difference.
The bank took off in a big way in 1991, after the merger of ABN and
AMRO worldwide. The Delhi branch was functional in the very same year.
ABN AMRO Bank was launched in other cities throughout India between
1994 and 1999. They were Chennai in 1994, Pune in 1997 and Baroda in1999, while the Hyderabad and Bangalore branches were opened in 2001.
The year 2002 saw the opening of the Noida office. AA Securities (I) Pvt.
Ltd. formed in September 1998.
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Achievements
Best at cash management Award in September 2001 The banker
Corporate Finance India ranked second in M&A in the investment
Banking arena in 2001 The Economic Times.
ABN AMRO Securities India Best foreign bond house No 1 arranger in
private sector Euro money 2000.
Top bank on MANAGEMENT QUALITY parameter business IndiaBest banks survey 2000.
7th
most admired commercial bank in the world fortune magazine 2000
Top foreign bank in India The Economic Times CMIE Survey 1999
Second overall in banking industry financial express BRIS Survey1999
Judged Indias No 1 bank by business today magazine in December
2002
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Products and Services : Overview
Our local expertise is backed by the strength of ABN AMRO Bank'svast international network. This enables us to offer the most innovative
financial products and services across banking segments, to help achieve
company's strategic local, regional and international goals and fulfill client's
personal investment needs.
Core Business Products and Services
Consumer Banking CREDIT CARDLOAN PRODUCTS
Loans against Securities
Car loans
Persona loans
DEPOSIT PRODUCTS
Savings Accounts
Current Accounts
Fixed Deposits
Products & Services
SERVICES
INVESTMENT SERVICES
Mutual Funds
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SERVICES
Debit Card
Net Banking
Express Cash
ATM Services
24 Hour Bank by Phone
Bill Payment
Doorstep Banking
Depository Services
National Access
365 Days Banking
Extended Banking Hours
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CHAPTER 3
PERSONAL LOAN
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PERSONAL LOAN
Personal loans help you to take care of your immediate requirements
Without much of a hassle. The most attractive feature of the personal loan
is that you do not have to give any kind of security to avail this loan. No
Security, Collateral or Guarantors are required to avail personal loans.
Also, no questions regarding the end use of the loan are asked since
personal loans do not require any security or hypothecation of assets, the
rate of interest charged by them is higher compared to any other secured
loans.
.
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ABN AMRO Personal Loans are completely flexible - you can take your
loan for purchase of assets and consumer durables, home improvements,
tax saving investments, higher education, holidays and travel, emergency
medical needs, marriage in family in short, for any declared legal use
without pledging any security.
You may also avail of our "Balance Transfer Program" to retire any
high cost loans that you may have taken, including your credit card dues
by simply opting for an ABN AMRO Personal Loan.
There are no hidden charges - our Personal Loans come to you with
minimum formalities, at attractive interest rates and only a one time non-
refundable processing fee. If you are an existing ABN AMRO customer,
you could be eligible for special discounts on the interest rates and
simplified application formalities under our "Relationship Rewards
Program".
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Loan with Income Statements / Salaried Employees
The loan offered to salaried employees is given according to the
companies they are working with. ABN AMRO Bank has around 7500
companies listed with them, and they offer loans to the employees working
in these companies only. The criteria for listed companies are according to
the company profile, past performance, profit earning ability etc. These
companies are again been divided into 3 categories i.e. Category A, B & C,
according to the above factors.
ABN AMRO Bank gives loan to the officers and management cadres
only. They don't give loans to the employees below the officers grade i.e.
to the supervisor, the workers etc. The applicant should be earning a
Gross annual salary of minimum Rs. 1, 00,000/- per annum. The
conditions are as follows.
Conditions
Officer or management cadre
Working in the current employment for at least 1 year or
overall 3 years work experience
Age between 23 to 60 years
Gross annual salary more than Rs. 1, 00,000/- per annum.
This maximum amount that can be given to an applicant is subject to
his net monthly income. The amount calculated by the applicants Net
Adjusted salary.
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Following is the table that is used to calculate the maximum loan amount.
Tenure Max Loan Amount
1 year 5 times net adjusted salary
2 years 10 times net adjusted salary
3 years 12 times net adjusted salary
4 years 15 times net adjusted salary
5 years 18 times net adjusted salary
Document Required:
1. Application form
2. Latest 2 months salary slip
3. Bank statement
4. Photograph (signed on back side)
5. Identity proof
PAN Card
Driving License
Passport
(if the above documents are not available then LIC premium
receipt/SSC Certificate with Photo and sign verification is
required)
6. Employment proof (Form 16 H or appointment letter)
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Self Employed Professionals
Doctors (BDS, MBBS, MD, MS only)
The loan offered to the self-employed professionals is, at present
limited to doctors (BDS, MBBS, MD, MS) only. The rate of interest for this
category is 16.5%. The conditions for this category area as follows.
Conditions:
Net Annual Income should be Rs. 1,00,000/- per annum
(at least Rs. 75,000/- from profession)
Overall 3 years in the business or profession
Age between 23 to 65 years.
The maximum amount that the bank can give is subject to the Net
adjusted salary of the applicant. The calculation for the same is done in the
following manner.
NAS (P) = Net Income (ITR) - (EMI * 12) - (IT paid in a particular year)
Degree Max Loan Amount
MBBS & BDS 4 times net adjusted salary
MD & MS 5 times net adjusted salary
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Self Employed Businessmen
The loan offered to the self-employed businessmen is limited to theProprietor, Director, Partner only. The rate of interest for this category is
22.5% for the Director and Partners.
Conditions
Net Annual Income should be Rs. 1,00,000/- per annum
Overall 3 years in the business
Age between 23 to 65 years
The multiplier used here is as follows.
NAS (B) = Net Income (ITR) - (EMI * 12) - (25% CC) - (IT paid)
Document Required:
1. Application form
2. Latest 2 years ITR with Balances sheet and P & L statement
3. Bank statement
4. Photograph (signed on back side)
5. Identity proof
a. PAN Card
b. Driving License
c. Passport
d. (if the above documents are not available then LIC premium
receipt/SSC Certificate with Photo and sign verification is
required)
6. Establishment proof
7. Telephone connection is a must in the office sand residence both.
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Loan without Income Statements
Credit Cards
In this program the loan is offered against the credit card limit. ABN
AMRO Bank gives loan to applicants having the credit cards of all MNC's,
SBI, ICICI, HDFC except to the employees of Private Limited Companies.
Conditions:
Rate of interest 21.5% if loan amount
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Surrogate Loan (Track Record of Previous PL/Auto/Housing Loan)
In this program the loan is offered on the track record of the previous
Personal Loan, Car loan and Housing loan. Track record on the loan takenfrom the following companies will make the applicant eligible for the loan
offered by ABN AMRO Bank.
State Bank of India (SBI
ICICI
HDFC
Kotak Mahindra
Amex
HSBC
Sundaram Fin.
Tata Fin.
IDBI
ING Vyshya
UTI
DCB
Centurain Bank of Punjab
GE Money/ Countrywide
Citi Fin.
Conditions
Previous loan should be matured at least for 12 months for thesalaried class and 18 months for businessmen.
Loan limit will be Rs. 25,000/- to Rs. 3,00,000/-
Interest will be 20% for car/housing loan
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Interest 1% less than previous personal loan (should not be
less than 17.5%)
Tenure 1 to 5 years
Multiplier is 15 times of EMI for salaried For Businessmen and others
If loan seasoning is done between
12 - 18 months 12 times of EMI
18 months and above 15 times of EMI
Documents Required
Application form
Identity proof
PAN Card
Driving License
Passport
(if above documents are not available then LIC premium
receipt/SSC certificate with photo and sign verification is
required)
Photograph (signed on both sides)
Track record of last 12 months/ 15 months bank statement
Employment / Establishment proof (Form 16H or appointment
letter/shop license)
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Personal Loan Top Up Scheme
Under this program, any applicant can go for the top up scheme. Here after the
completion of six months, the applicant can get an additional loan amount to theEMI of the loan and the completed tenure of the loan.
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CHAPTER 4
CREDIT LINE
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CONCEPT OF CREDIT
1. It is the idea that if you build up a reputation for paying bills and debts on
time you will be able to borrow money in the future.
2. Credit is important because it enables you to borrow money when you need
it. In addition, the better your creditworthiness the more cheaply you will
be able to borrow money whether for a car, education, home or some other
large expenses.
3. On the other hand, if you are not a good credit risk, you may not be able to
borrow when you need to, or you might be able to borrow but only at a high
interest rate.
SIGNIFICANCE OF CREDIT
Credit is used primarily in order to obtain loans. Loans can be
excellent way to be fund large purchases and business initiative
,but managing debt can be complicated process
It can take just few months to get into financial trouble and years
to get out.
Although debt is some time useful, there is diff between good debt
and bad debt the two most important characteristics are how you
borrow the money and what you do it .HOW FRUITFULLY YOU
USE IT.
Even though debt is a part of life, the key to preventing it from
becoming destructive is knowing its benefits and risks.
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REASONS FOR CREDIT ANALYSIS
Unfortunately credit fraud is increasingly serious problem having grown
almost threefold in frequency in the last five years. Under the most
common scham called Identity Theft the criminal opens a credit card or
other account with another person name. The criminal then purchases
goods and services and you get stuck with the bill.
Credit card fraud & credit analysis are not related with each other.
Sometimes the creditor / borrower may qote wrong information about his
personal loan details. his capacity to pay off the loan ,the reasons for taking
the loan.
Therefore to overcome all this fraudulent activity credit analysis is to be
done, to check out the worthiness of the creditor to repay the loan and pay the
intrest.
CREDIT ANALYSISDEFINATION:
The process of evaluating an
applicant's loan request or a corporation's debt issue in order to
determine the likelihood that the borrower will live up to his/in
obligations.
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SALARIED
Min Age - 23
Max Age (on loan maturity) - 60
Residence Stability - 2 yrs in Pune or in Current Emp>3 yrs or Self-
Owned resi or Gross Sal> 3.6L
Job Stability - 1 yr at current job or 3 yrs total work experience
Basic Documents - (1) photo with sign on back side (2) ID proof (3)
Job/Business Stability proof
Self employed - Biz
Min Age - 25
Max Age (on loan maturity) - 65
Residence Stability - 2 yrs in Pune of 1 yr in current resi OR self owned
resi
Job Stability - 3 yrs in same biz
Basic Documents - (1) photo with sign on back side
(2) ID proof
(3) Job/Business Stability proof
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RR Customers
Min Age - 21
Max Age (on loan maturity) - 70
Residence Stability - 2 yrs in Pune or in Current Emp>3 yrs or Self-
Owned resi or Gross Sal> 3.6L
Job Stability - 1 yr at current job or 3 yrs total work experience
Basic Documents - (1) photo with sign on back side (2) ID proof (3)
Job/Business Stability proof
Verified Income Program -
Cat A
Min Income - Gross 1 Lac
Max loan amt - 10 lacs
Max Tenor - 5 yrsEmp Continuity Req -
Maximum Loan eligibility-Multiplier - 1 yr - NAS x 5
2 yrs - NAS x 10
3 yrs - NAS x 12
4 yrs - NAS x 15
5 yrs - NAS x 18
Documents - (1) Latest 2 payslips (2) 3 months bank statements reflecting3 Salary Credits.
Additional Qualifying requirements -
NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC
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Cat B
Min Income - Gross 1 Lac
Max loan amt - 5 lacs
Max Tenor - 4 yrsEmp Continuity Req -
Maximum Loan eligibility-Multiplier - 1 yr - NAS x 4.5
2 yrs - NAS x 9
3 yrs - NAS x 10
4 yrs - NAS x 13
Documents - (1) Latest 2 payslips (2) 3 months bank statements reflecting
3 Salary Credits.Additional Qualifying requirements -
NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC
Salaried
Min Income - Gross 1 Lac
Max loan amt - 3 lacs
Max Tenor - 4 yrs
Emp Continuity Req -
Maximum Loan eligibility-Multiplier - 1 yr - NAS x 4
2 yrs - NAS x 8
3 yrs - NAS x 9
4 yrs - NAS x 11
Documents - (1) Latest 2 payslips (2) 6 months bank statements reflecting
3 Salary Credits.
Additional Qualifying requirements -
NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC
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Salaried
Min Income - Gross 1 Lac
Max loan amt - 1.25 lacs
Max Tenor - 3 yrsEmp Continuity Req -
Maximum Loan eligibility-Multiplier - 1 yr - NAS x 4
2 yrs - NAS x 8
3 yrs - NAS x 9
Documents - (1) Latest 2 payslips (2) 6 months bank statements reflecting
3 Salary Credits.
Additional Qualifying requirements -NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC
Software Professionals
Min Income - Net 1.5 Lacs
Max loan amt - 5 lacs
Max Tenor -
EMP Continuity Req -
Maximum Loan eligibility-Multiplier - 1 yr - NAS x 3.5
2 yrs - NAS x 7.5
3 yrs - NAS x 9
4 yrs - NAS x 11.25
5 yrs - NAS x 13.5
Documents - (1) Latest 2 payslips (2) 3 months bank statements reflecting
3 Salary Credits (3) must
Additional Qualifying requirements -
- Must have 12 months old loan with approved financier ( lac AL/HL or
75,000 PL) OR CC with min 40,000 limit.
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NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC
EMPLOYEES OF BPO , CALL CENTER
Min Income - Net 2.4 lacsMax loan amt - Cat A - 5 lacs & Cat B - 3 lacs
Max Tenor -
EMP Continuity Req - Min 3 yrs
Maximum Loan eligibility-Multiplier - 1 yr - NAS x 3.75
2 yrs - NAS x 7.5
3 yrs - NAS x 9
4 yrs - NAS x 11.255 yrs - NAS x 13.5
Documents - (1) Latest 2 payslips (2) 3 months bank statements reflecting
3 Salary Credits (3) must
Additional Qualifying requirements -
- Min age of 23 yrs and must not be staing in shared rented
accommodation.
NAS (Net Adjustable Salary) = Net Salary - Obligation - 5% of AAB CC
Surrogate Program
Loan track record NRR
Max loan - 7.5 lacs
Min vintage - 8 months
Max tenor - 5 yrs
Program requirement - Min 10 EMI's paid and Min loan taken Rs.
50,000/-
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Max Loan eligibility -
10-12 EMI's x EMI x No. of EMI's paid x 1.25
>12-18 EMI's - EMI x No. of EMI's paid x 1.45 (subj to Max of 30 EMI's) >
18-24 1.5Eligibility -
Citibank, StanC, AmEx, HSBC, ICICI, HDFC, Sundaram Fin. Kotak Mah,
Tata Fin, IDBI, ING Vysya, UTI, KOTAK, DCB, Centurian Bank of Punjab,
GE Money/Countrywide**, Citi Fin**, Maruti Countrywide**
Documentation - (1) Repayment track, (2) 3 months bank statements OR
(1) Amortization schedule & 8 months banking.
Surrogate Program
Mobile Phone
Max loan - 1.25 lacs
Min vintage - 3 months
Max tenor - 3 yrs
Program requirement - Min Avg Billing of Rs. 1500/- for last 3 months
Max Loan eligibility -
* Rs. 1500 - Rs. 2500 - 75,000 > Rs. 2500 - 1, 25,000
Eligibility -
Aritel, Reliance, Idea, Hutch, BSNL, Tata Mobile & BPL
Documentation - Latest 3 months mobile bill statements showing min
billing of Rs. 1,500/-
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Surrogate Program
Other Bank Deposit
Max loan - 3 lacs
Min vintage - 6 monthsMax tenor - 3 yrs
Program requirement - Saving Bank A/c with 6 months relationship
Max Loan eligibility -
* 6-12 months - ADB x 1
* 12-18 months - ADB x 2
*> 18 months - ADB x 3
Eligibility -ICICI, HDFC, StanChart, Citibank, HSBC, AmEx, UTI, IDBI & SBI
Documentation - Latest 6 months bank statements from S/B a/c with last
days avg balance >/= Rs. 25,000/-
Balance Transfer Program
Credit Card
Max loan - 3 lacs
Min vintage - 8 months
Max tenor - 3 yrs
Program requirement -
* Min Credit Limit - 25,000/-
* Limit utilization on Card =/
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Eligibility -
Sai Employees of Prop & P'ship mush have min MOB>12 months
Documentation - (1) Latest 2 months Card Statement (2) front & back
copy of the Card.
Balance Transfer Program
PL
Max loan - 4lacsMin vintage - 1 yr
Max tenor - 4 yrs
Program requirement -
Min 12 EMI's paid and Min loan taken 1 lac
Max Loan eligibility -
* 12 to 18 EMI's = 1.2 x Principal Outstanding
* 18 EMI's = 1.3 x Principal Outstanding
Eligibility -
Documentation - (1) Repayment track for the last 12 months (2) 3 months
bank Statement OR (1) 12 months bank statements (2) amortization
schedule & (3) Resi. & DOB Proof.
ROI - Personal Loan: 1% less than competition subject to min of 16%
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RR Program
C A/c
Min vintage - 6 months
Max loan - 6 lacsMax tenor - 5 yrs
MUE -
Program eligibility -
6 months ADB 40,000/-
Loan eligibility -
* 6 to 12 months - ADB x 3
* 12 to 18 months - ADB x 5* > 18 months - ADB x 6
RR Program
SB A/c
Min vintage - 6 months
Max loan - 6 lacs
Max tenor - 5 yrs
MUE -
Program eligibility -
6 months ADB 20,000/-
Loan eligibility -
* 6 to 12 months - ADB x 3
* 12 to 18 months - ADB x 5
* > 18 months - ADB x 6
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RR Program
Cards
Min vintage - 8 months
Max loan - 4 lacsMax tenor - 4 yrs
MUE - 8.5 Iacs
Program eligibility -
Min Credit Limit - 25,000/-
Loan eligibility -
* 8 -12 months - Cr limit x 2
* > 12 months - Cr limit x 3
RR Program
Auto Loan
Min vintage - 8 months
Max loan - 7.5 lacs
Max tenor - 4 yrs
MUE - 8.5 Iscs
Program eligibility -
8 EMI's paid
Loan eligibility -
* 8 -12 MOB - EMI x No. of EMI's paid x 1.5
* > 12-18 MOB - EMI x No. of EMI's paid x 1.75
* > 18 MOB - EMI x No. of EMI's paid x 2 (subj to a Max of 36 EMI's)
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RR Program
Mortgage
Min vintage - 8 months
Max loan - 7.5 lacsMax tenor - 5 yrs
MUE - 8.5 Iscs
Program eligibility -
Loan eligibility -
EMI x No. of EMI's paid x 1.5
* Subj to a Max of 18 EMI's & LTV of HI < 80%
Top Up Program
Min loan enhancement - Rs. 50,000/-
Max loan - For Salaried, loan amount caps as per present employer
category (Cat A/B) AND for SE as per program
Min vintage - 8 months
Max tenor - New loan tenor either same as earlier loan of higher subject to
program caps (depending on whether existing loan is RR/VI/SI etc).
Program requirement -
# Any applicant who has availed a loyalty/special loyalty auto loan from the
bank in the last 3 months will not be eligible for a loan under the Top Up
program.
# If existing PL has already closed/run off, then the loan multipliers will
apply ONLY if the last payment is not more than 12 months old. if last
payment is 12-24 months old, the PL can be processed as Override-
however multipliers will not apply.
# Max 4 Top up loans allowed.
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# The EMI's for the top up loan should be from the same account as that of
the existing loan and the existing business/employer (entity only) and
residence addresses should be unchanged, failing which, a full verification
will be done i.e., residence and/or business/employer.# The new loan may be approved for either the same tenor as the earlier
tenor or a higher tenor subject to the maximum tenor allowed for the
specific program.
# The applicant category must be unchanged from the original application
i.e. if the applicant was earlier salaried and now self employed he will not
be eligible under the
Loan eligibility -If, 8 -12 EMI's paid then EMI's paid x 1.2 & If, > 12 months then EMI's paid
x 1.3
* > 12-18 MOB - EMI x No. of EMI's paid x 1.75
* > 18 MOB - EMI x No. of EMI's paid x 2 (subj to a Max of 36 EMI's)
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Co-borrowers
This program is only for the salaried applicants. In this program the spouse can
be the co-borrower for the loan amount.
The income of the spouse can be added in the gross income for the multiplier,to find the maximum loan that can be given to the applicants. Here 60% of the
spouses gross income can be added for eligibility.
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Guarantors
Although ABN AMRO BANK does not require guarantors for personal loans, but
there are some exceptions where there is need for the guarantors. The following
are the conditions when there is need for guarantors.
1. If the person is staying alone
2. If the applied amount for loan is very high
3. For self employed business
4. For software professionals if the applied amount of loan is grater than Rs.3, 00,000/-
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INTREST STRUCTURE
PERSONAL LOANS
Salaried Individuals 16% - 23%
Relationship RewardsPrograms 16% - 22%Track Record/Special
Surrogate Programs 18% - 26%Processing fee for Regular
Programs 2.25%Processing Fee forRelationship RewardPrograms
2%
Processing Fee for loanamount less than Rs. 100000 Rs. 20
Disclaimer - The rate of interest mentioned above are the standard and average
rates under standard income criteria for each class of borrowers and shall be
higher/lower depending on the parameters which are met by the customers. They
would also vary by tenor. These rates are currently applicable and can be changedany time from time to time, at the sole discretion of ABN AMRO Bank and
without any prior or post notice to the customer and such changes shall be final
and binding on all customers of ABN AMRO Bank
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Personal Loan Approval Stages
Marketing Executive
File
Checking Documents
Coordinator
Initiating Verification
{Crystal Info Services (P) Ltd.
Central Processing Agency
Credit Department
Approval / Decline
Post Approval Documents
Delhi Disbursement
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After a file is logged in by the Marketing Executive, the Coordinator checks
the documents and also initiates the Verification. Verification is done by an
external agency 'Crystal Info Services Pvt. Ltd." The Verification is done by
a surprise visit to the applicants residence and office premises, subject to
a maximum of 3 times. Once the verification is done by the agency the
report is submitted to the credit department.
Meanwhile, the documents submitted by the applicant are being
forwarded to the Central Processing Agency (CPA), which checks the
details of the documents for processing. This work is also given to an
external agency 'Lovelock & Lewis Pvt. Ltd.'.
The two external agencies submits their report to the Credit
Department, which actually decides for Approval/Decline of the case, for
further processing. The details of the report are put into a programme that
calculates the maximum sanctioned amount for the loan.
Once the loan is approved, the Cheque is disbursed to the applicant
and the documents are sent to Delhi Office.
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Guideline Notes on Norms
Eligibility Criteria:
1, Age - Needs to be ascertained from Date of Birth as given in the
address proof or the ID proof or the SSC Certificate.
2. Loan Eligibility - Multiplier to Net Income
3. Number of years in present/previous job/ business - it is very
important norm, which helps assess the stability of the applicants
career and also the regularity of the incomes for repayments of
the loan.
4. Salary - The minimum requirement of Salary of the applicant is
set to Rs. 1, 00,000/- only.
5. Telephone - a landline telephone connection is compulsory for
every Scheme except for the Salaried applicants, for which a
mobile connection will do along with the latest mobile bill.
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Contact Point Verification Policy
Contact Point Verification Policy (CPV) is a very important part of the
Approval process.
Objectives: To ensure that the information is accurate
To enable the credit officer to construct a profile of customer for
credit evaluation
To select and eliminate fraudulent applicant
Purpose:
To establish identity of the borrower, ascertain and reconfirm his
residential and office address, length of stay and stability, and match
them with the information given by the applicant in the application
form.
Residence verification is an external input to evaluate the standard
of living of the applicant's household in terms of his visible quality of
life indicators like T.V., Refrigerator, AC, Music System etc.
The office verification will reconfirm the name and address of his
employer and his designation in the company. In case of self
employed Professional/Businessman, the office CPV will provide
data on number of years of business, employees in the company,
size and location of the office etc.
Contact Point Verification is an aid to, and not replacement or a
substitution to credit evaluation process. A positive CPV does not
guarantee Credit Approval.
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Division of files according to Programs
0
5
10
15
20
25
30
35
Relationship
Rew ards
Top Up
Scheme
Balance
Transfer
SEVI Self
Employed
Professional
Salaried
Program
Surrogate
Program
Programs
N
o.ofFiles
Series1
Series2
Series3
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CHAPTER 5
CASE STUDY
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CASE STUDY
Name: Siddharth Dixit
Date of Birth: 25-07- 1975
Gender: Male
Martial status: Married
Existing Relationship: NO
Residential Address: Pl no 22, Purnanand Soc, Sadashiv Peth, Pune: 411030
Name of Buiseness Entity: Sanchi Silk
Business Address: Laxmi Road, Pune 411012
Proprietor Name: Siddharth Dixit
No of years in Business: 12 yrs
Telephone No: 24216545
Mobile No: 9860542165
Residence Type: Self
Live in the city of Residence for: since Birth
Live in the current residence for: 10 yrs
Detail of Spouse:
Name: Yogini
Occupation: House Wife
Number of Dependant: 2
Surrogate Loan 1: HDFC Bank
Type of Loan: Auto Loan
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Monthly EMI: 22550
No of EMI Paid: 15
Current Loan Rate: 20%
You want a loan of RS: 5, 00,000
Banking Relationship Detail
Login Documents Provided:
1) Application Form2) Pan Card3) MSEB Bill Xerox
4) Telephone Bill Xerox Of Sanchi Silk5) Renewal Shop Act6) EMI reflected banking only, Bank A/c Statement,
Current A/c from Janata sah Bank
7) Welcome Letter8) Repayment Schedule9) 2 References who knows the applicant their telephone
no , Residential Address
10)Photograph
Customer attestation is compulsory on each document; Sign behind thePhotograph is must.
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STEP 2
After the file logd in properly it went to Contact Point
Verification for Telephone Verification Then it is
initiated as Telicalling Ok
Additional Document Required:
ITR Copy of 2002, to see Income from Business &
Profession the case is under self employed. For business
continuity the 2002 copy demanded.
After it went to credit Then Physical verification was
initiated.VR done at Residence, Resi Owned, Prime Location, Met
Wife.
VR done at Office, Met the Staff, Prime Location prop
conformed, set up activity seen.
Then CIBIL Report Checked, CIBIL report is Credit
Information Bureau India Limited Report.
CIBIL: All information Contained in this credit report
has been collated by Credit Information Bureau IndiaLimited based on information provided by its various
members .Consequently CIBIL disclaims any and all
responsibility on the accuracy, completeness, and
veracity of any and all such information provided. The
information is current and up to date to such extent as
provided by its members. Any information contained
herein does not reflect the views of CIBIL or its directors
or employees.
The use of this report is governed by the terms and
conditions of rules for CIBIL and its members.CIBIL
report gives details about All MNCS Loans & Credit
Cards History.
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CHAPTER 6
CONCLUSION
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CONCLUSION
ABN AMRO BANK has successful lead on personal loan market .Moreover they
working for customer satisfaction .Bank very much stuck to the policy , the policy
is not flexible to everyone it mainly concentrate on Higher middle class group andMass public. Bank mainly deal with surrogate program it will go through the
process very soon as compare to other.
Basically CREDIT ANALYSIS is a programmed carried out by Banks to
Minimized the Risk involved to lending money .Credit appraisal intention is to
verify Financial soundness & his repayment capacity, to check MCNF (Master
Card Negative Feedback) and very important is CIBIL report.
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BIBLIOGRAPHY
SITE:
WWW.ABNAMRO.CO.IN
BOOKS:
RISK MANAGEMENT
INDIAN FINANCIAL SYSTEM: M Y Khan
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