Quick Success Series - P Segment Loan Products (February 28, 2013)

Quick Success Series : P Seg Loan Products

Updated By

Akhil Mishra, CM (Trg), SBLC, Deoghar

Mobile-9162209158

Email—[email protected]

Quick Success

Series

P Seg Loan Products

QUICK SUCCESS SERIES was envisioned by Sri

Shailesh Kumar, who was then a Faculty at SBLC

Deoghar and he along with Sri Rajeev Shankar (who

is still in our team) converted their dream into

reality, they did not really knew that time that QSS

will become so popular and SBLC Deoghar will

receive overwhelming demand for its updated

version year after year from various parts of the

country. A special thanks to both of them for

conceiving QSS.

One of the hall marks of excellence is that any

product remains constantly in demand and over

years, the demand grows. Team Deoghar is

humbled by the response and recognition, it has

received from various users of QSS. Our sincere

thanks to our readers.Your expectations will keep us

live and kicking.

I take pride in representing a Team comprising of Sri

Akhil Kumar Mishra, Chief Manager (Training),

Sri Shiv Prakash Jha, Chief Manager (Training), Sri

Rajeev Shankar, Chief Manager (Training), Sri

Champak Das, Manager (Training) & Sri Rakesh

Roshan, Manager (Training), who have owned up

QSS like their own baby and are constantly

contributing towards value addition and keeping it

relevant and up to date for the users.

We hope that this edition will be equally useful for

various promotional exams. We request our readers

to point out any lapses at the earliest, though we

have taken adequate care to be as correct as

possible. This book is however not a substitute for

circular instructions issued by the Bank from time to

time.Our Team wishes you grand success in all your

endeavours.

S K Rana

Assistant General Manager,

State Bank Learning Centre, Deoghar- 814112

Phone- 06432-232895 Fax - 06432-231810

E-mail: [email protected]

P Segment Loan Products

Updated upto 28th

February 2013


Home Loan Purpose: 1) purchase a plot of land for purpose

of construction of house

2) purchase /construct a new house/flat

3) purchase an existing (old) house / flat or

extend an existing house

4) repair or renovate an existing house /flat

5) furnishing / consumer durables as part of the

project cost.

6) re-imbursement of investment made from

own resources during the preceding twelve

months for purchase /construction /repairs

/extension of house. A higher margin of 25% will be insisted upon. Maximum Loan Amount:

a) Construction Linked Disbursements

Amount Loan to value (LTV) Ratio for

construction linked disbursement

For Home under

construction

House ready

for

possession

Upto Rs.

20 lacs

90% 90%

Above Rs.

20 lacs

80% 80%

b) Advance Disbursement Facility (ADF)

Home Loan

Amount

LTV

Ratio

Discretionary power

for sanctioning

concession in LTV

Loan up to

Rs. 1.00 crore

75%

GM (Network) may

approved LTV ratio

up to 80%

Loan above

Rs. 1.00 crore

75%

CGM (Circle) may

approved LTV ratio

up to 80%

Eligibility: Age- Min 18 Yrs; Loan to be fully

repaid by the age of 70 Yrs;

SA (Sanctioning Authority) may sanction loans to

individuals above 70 years, provided son /

daughter / spouse, below the age of 50 years,

with sufficient income for servicing the loan

repayment, joins as co-borrower / guarantor

Platinum Age Limit- 75 Yrs if i) Estimated Rental

Value 80% of EMI & ii) Margin 30%

Age of younger borrower will be taken for fixing

repayment period

No. of Co-borrowers- 3 (including Spouse/

Children / Parents / Siblings)

AGM may relax it if i) Property in joint name of all

borrowers & ii) Repayment through Joint A/C.

@For furnishings / consumer durables: 10% of

the project cost or Rs. 6 lacs whichever is less.

For repairs / renovations: The maximum loan

amount should not normally exceed Rs 10 lacs.

Expected rent accruals from the proposed house

being let out (net of taxes, cess etc.) may be

reckoned for computation of Loan Amount

subject to it not exceeding applicant’s NAI

Regular income from all sources including

performance linked incentives, bonus etc can be

considered, in whole or in part. Average of last

two years, to be taken to compute NAI

SA may permit adding back of depreciation to

compute NAI in case of loan to businessmen,

professionals and self-employed individuals who

run the business/activity on proprietorship basis

and who have availed loans only from us for

buying the assets on which depreciation is being

claimed

EMI/NMI Ratio:

Net Annual Income EMI/NMI ratio

Upto Rs.60,000/ -20%

Above Rs.60,000/- and upto Rs.1,20,000/ -25%

Above Rs.1,20,000/- and upto Rs.2 lacs. -30%

Above Rs.2 and upto Rs. 5 lacs. -50%

Above Rs.5 lacs and upto Rs.10 lacs. -55%

Above Rs.10 lacs. -65%

Margin:

Loan

amount

For House

under

construction

House for

ready

possession

Upto Rs. 75

Lacs

20% 15%

Above Rs. 75

Lac

25% 15%

@ Margin will be calculated on the basis of total

project cost but the maximum permissible loan

amount would be restricted to the stipulated LTV

ratio

Processing Fee

Loan Amount Processing Fee Upto Rs. 25 lacs

0.25% of loan amount, minimum Rs. 1000/

Above Rs. 25.00 lacs and upto Rs. 75 lacs Rs.

6500/

Above Rs. 75 lacs Rs. 10000/


Penal Interest on Irregular Loans:

i. No penal interest should be charged for Home

Loans upto Rs.25,000/-

ii. For Home Loans above Rs.25000/- , if the

irregularity exceeds EMI or Installment amount,

for a period of one month, then penal interest

should be recovered @ 2% p.a. (over and above

the applicable interest rate) on the overdue

amount for the period of default. If part

installment or part EMI remains overdue, then

penal interest should not be levied.

Pre-closure penalty:

It has been decided to discontinue the pre-

closure/pre-payment penalty on all Home

Loans irrespective of the period for which the

account has run or the source of funds.

Moratorium:

for buildings up to 7 floors – 18 Months

14 floors – 24 months

21 floors – 30 Months

More than 21 floors – 36 Months

Maximum Repayment – 30 Yrs (or) Up to the

age of 70 years (the age by which the loan

should be fully repaid) of the borrower,

whichever is early.

For Home Loan Borrowers falling under

Commercial Real Estate (CRE) and Individuals

engaged in business maximum loan tenor will

be 25 years

Centralised mailing of Housing Loan Interest

Certificate

Interest certificates are despatched centrally

to all Home Loan borrowers at

addresses recorded in CBS. First such

despatches, in respect of of FY 2011-12, took

place in May 2012.

Loan for more than one house may be approved

subject to satisfactory conduct of existing loan

accounts as evidenced from account statement &

CIBIL Report

Obtention of duly signed 48 PDCs required.

However, where mandate of repayment is

through ECS Debit or SI, presigned and undated

cheques need not be taken. Section

25 of the Payment and Settlement System Act,

2007 provides punishment for dishonor of

electronic funds transfer on account of

insufficient funds etc.

Interim security pending creation of Charge may

be waived by SA or AGM(Region)/(Branch) if

applicant is of undoubted integrity & standing and

also in case of loans of employees of Central/State

Govt, PSUs and reputed Corporations and

Institutions, if check-off facility is provided along

with an irrevocable undertaking from the

employer for making repayment of outstanding

loan out of any amount payable to the employee

including terminal benefits on retirement /

resignation towards all dues pertaining to the

account.

@ Prospective borrower(s) can exercise one time

option while submitting loan application, to avail

Home Loans either at the place of construction or

place of employment/ profession/business

activity, at a place of residence or at a Branch

located at other centre where he/she has

ongoing relationship for last 2 years, by securing

the loan repayment through check-off facility or

by obtaining post-dated cheques/ECS/S.I. as per

extant instructions.

Turn Around Time (TAT):

Government of India (GOI) desired that a Board

approved policy on the time norms for disposal of

loan applications be put in place. Accordingly,

Executive Committee of the Central Board (ECCB)

has approved the policy of disposal of home loan

proposals as under :

RACPC/RASMECCC

Different scenario Sourcing

entities

Processi

ng

entities

l TAT

for

sanct

ion

Under builder tie-up

(same centre)

2 4 6

Under builder tie-up

(other centre)

2 4 6

Out of Builder tie-up

(same centre)

2 10 12

Out of Builder tie-up

(other centre)

2 14 16

Documentation/

Disbursement

2 Days


RCPC

Sourced by MRT Sourced by Branch/BC/BF

7 days 9 days

@ The ‘in-principle’ approval shall be valid for 30

days from the date of issue.

Inspections:

@ Property inspection is to be carried out and

recorded at each stage of disbursement

thereafter once in every 3 years.

@ If repayments are in arrears for two successive

months, inspection should be conducted

immediately.

@ For NPAs: At half - yearly intervals

Title deeds verification / Search report:

For Home Loans for amounts below Rs.1 crore, a

search for a period of 15 years, instead of 30

years. However, in respect of properties

belonging to Government, LocalAuthorities, etc.,

30 years search report will be necessary.

For Home Loans of 1 crore and above, the Bank

may request the empanelled lawyer to give a

search report within 4 to 6 days covering a period

of 15 years.

If no encumbrances are found, the Bank can

process the application to grant the loan and

arrange for execution of documents etc. In the

meantime, Bank’s empanelled lawyer should

make a search for the period of 15 years prior to

the 15 years for which search report has already

been provided.

Optional Group Insurance Scheme for Home

Loan Borrowers : SBI Life Insurance Company Ltd

(SBI Life) has introduced a new group credit life

product named RiNn Raksha. The scheme will

provide life coverage for the credit amount to

home loans borrowers. Home Loan borrowers

with loan limit of Rs. 25.00 lacs and above may

choose between RiNn Raksha (Group Policy) and

Smart Shield (Individual Policy).Both the policies

are offered by SBI Life.

Revised RBI guidelines with effect from 20.7.2012 Priority Sector Advances (staff loans

excluded)

Purpose of Direct

Home Loan

Location Max_m

loan

amount

Purchase/constructi

on of a dwelling

unit per family

Metro with

population

> 10 lacs

25 lac

Purchase/constructi

on of a dwelling

unit per family

Other

Centre

15 lacs

Repairs to damaged

dwelling units per

family

Rural &

Semi-urban

areas

2 lacs

Repairs to damaged

dwelling units per

family

Urban &

Metro

areas

5 lacs

Engagement of Builders as Marketing Associates:

The builders with whom we have tie-up

arrangements, are engaged as our Marketing

Associates (MA) for promoting our Home Loans.

MAs will be paid service charges of 0.25% of the

loan amount for every case directed to the Bank

(only if the loan is ultimately sanctioned and

disbursed by us)

Empanelment of Home Loan Counselors (HLCs) at

Branches linked to RACPCs:

Individuals from SBI Home Loan customers (other

than staff) and others as Home Loan Counselors

(HLCs) for sourcing Home Loan proposals.

Remuneration: 1. For HLCs sourcing Home Loan

business upto Rs. 5 crore per month :

0.25% of the loan amount, maximum Rs.50000/

per proposal.

2. For HLCs sourcing Home Loan business more

than Rs. 5 crore per month :

0.30% of the loan amount, maximum Rs.60000/

per proposal..

Provision of accepting liquid securities in lieu of

mortgage of residential unit

The stipulation of mortgage of the residential

property financed by us, may be waived provided

in lieu thereof the loan is secured by pledge of

liquid securities of adequate value viz. (i) Term

Deposits ( including NRE/FCNB

deposits) in own name/ in the name of third party

(ii) NSCs/KVPs in own name/ in the name of a

third party (iii) Life Insurance Policies in own name

(to the extent of surrender value), Govt.


Promissory Notes in own name or in the name of

the third party etc and such other tangible liquid

securities as

may be deemed appropriate by the sanctioning

authority subject to the margins stipulated in the

scheme for finance against the securities

concerned. Where ever, the security tendered

stands in the name of the third party, he/she

should guarantee the home loan.

HOME LOAN TO BUSINESSMEN

Should have been making profit continuously

over last three years

Minimum loan amount - Rs.25 Lacs (Loan higher

of Income as per ITR + Depreciation Claimed or

5% of Annual Sales Revenue)

Minimum Margin - 30% (applicable only when

loan amount eligibility is worked out on the

basis of Annual Sales Revenue instead of I.T.

Returns)

Type of facility - Term Loan (Max Gain in the

form of overdraft facility not permitted)

NRI HOME LOANS

Individual (s) over 18 years of age with a steady

source of income and should have been

employed for at least 2 years and presently

holding a valid job contract / work permit.

Loan Amount: Minimum Rs. 3.00 lacs

Repayment: A maximum tenure of 30 years to

be fixed subject to the loan to be fully repaid by

the age of 60 Yrs.

SBI REALTY

Home Loan for purchase of Plot

Maximum Loan Amount –Rs 10.00 cr

Maximum period for construction of house: 2

years from the date of availment of the loan

Penalty in case of delay in construction- Higher

of Rate applicable to Personal Loan against

Mortgage of Immovable Property or 5.25%

above the Base Rate after expiry of stipulated

period

For loans above Rs 50 lacs i) prior administrative

clearance is required from the AGM Region /

Branch in all cases where sanctioning authority is

an official of a lower grade i)Property to be valued

by two independent empanelled Valuers- Lower of

the two valuations to be considered & ii) two title

search reports to be obtained – one before loan

sanction another before disbursement from two

different empanelled lawyers iii) CIBIL Credit

Information Report on the borrower to be

obtained twice - one during loan sanction process

and another before disbursement of loan

Max Repayment – 180 Months

Margin- 50% in excess of Rs 1 Cr; 25% above Rs 75

lac & upto 1 cr; 20% up to Rs 75 lac

EMI/NMI Ratio

30% - NAI Upto 2 lacs

40% - NAI Above 2 lacs & Upto 5 lacs

45% - NAI Above 5 lacs & Upto 10 lacs

50% - NAI Above 10 lacs

May be relaxed by 10% by Sanctioning Authority if

Customer undertakes to complete the

construction of House with own sources

SBI MAXGAIN Facility – HL with Overdraft facility (with ATM,

INB, Cheque book)

Should have SB/CA (Existing or Prospective) with

minimum balance of Rs 5000/-

This stipulation not applicable to Salary Accounts

Min loan -5 lac; Max- No upper ceiling.

Conversion of Existing Home Loan ( Term

Loan) To Max gain Account (OD)

a) On receipt of option letter

his/her term loan account may be closed and

a new Maxgain account may be opened

subject to the customer fulfilling the criteria

of availing a Maxgain home loan. The rate of

interest, limit, DP, outstanding and tenor will

be the same as the original loan account

except for loans over Rs. 1 crore where a

premium of 0.25% over the existing rate of

interest will be charged as per extant

instructions.

b) The home loan sanctioning authority may

authorize the conversion.

c) A fee of Rs. 1000/ will be charged as

processing fee.

SBI HOME PLUS (PERSONAL LOAN) HAS BEEN

DISCONTINUED. A NEW PRODUCT SBI HOME

EQUITY HAS BEEN LAUNCHED


HOME EQUITY

Existing Home Loan customers with a satisfactory

repayment record of at least one year provided

possession of the house has been taken by the

borrower & valid mortgage has been created.

Loan -75% of Property Value – O/s in HL A/c

Min loan- 50000/-; Max 2 crore

Facility – TL or OD (with ATM)

EMI/NMI Ratio - Net Annual Income (NAI)

Permissible EMI/NMI Ratio

> Rs. 2.00 lac <= Rs. 5.00 lac 50% > Rs. 5.00 lac <= Rs. 10.00 lac 55% > Rs. 10.00 lac 65

TRIBAL PLUS (FOR HILLY/ TRIBAL AREAS)

Age – Min 21 Yrs; Loan to be fully repaid by the

age of 65 Yrs

For Employees –

Min 5 Yrs of Service; Loan – 36 times NMIs

Max loan- 10 lacs

Margin- 15% (Construction/ Purchase); 20%

(Repair)

TPG of another employee or group of employees

Min Liquid Security – 30% of loan amount

AGM Region/Branch may reduce it to 15% of the

loan amount in respect of tie-ups with govt.

Depts, reputed corporates with availability of bulk

business potential of not less than Rs.2 cr.

For Professionals, Self employed, businessman

and agriculturists –

Min 5 Yrs of Experience and i) Maintaining

deposit A/c with Avg Bal of Rs 5000/- for last 2 Yrs

or ii)maintaining loan account for a minimum

period of 2 years(without any instance of

overdues and bouncing of cheques etc) and

classified as Standard Assets;

Loan – 2 times Average NAI for the last 3 Yrs

TPG or group guarantee equal to or more than

the loan amount

Min Liquid Security – 50% of loan amount ; Max

Repayment – 15 Years

GRAM NIWAS

Age - 18 years to 50 years. Age > 50 Yrs may be

considered if all the legal heirs join as guarantor

Should have satisfactorily conducted account with

us or a member of a Self Help Group having

savings / loan accounts with us.

Residential Property should be located in Rural

Area – Comprising any village or any area in a

town with population not exceeding 50000 as per

census 2001

LIMIT- Max 1 lac ( for purchse of land)

Max 2 lacs(For Repairs/ Renovations)

Max 5 lacs Gram Niwas (For Construction/

Purchase of house)

Facility – TL or OD with ATM

Max Repayment – 15 Years

Margin-10% Loan upto Rs 50000/-

15% Loan above 50000/- & Upto 5 lacs

20% Loan Above 5 lacs

EMI/NMI Ratio

25% - Last 2 Yrs Average Annual Income Upto

40000/-

45% - Last 2 Yrs Average Annual Income Above

40000/- & Upto 2 lacs

55% - Last 2 Yrs Average Annual Income Above 2

lacs & Upto 5 lacs

60% - Last 2 Yrs Average Annual Income Above 5

lacs

SAHYOG NIWAS Rural Home Loans to SHGs for on lending to its

members

SHGs should have good track of payment records

for 2 Yrs

Loan Amount 10 times the savings of the corpus

of SHG including limits already sanctioned

EARNEST MONEY DEPOSIT SCHEME

Loan upto 100% of application money – Max Rs

10 lakh

Age – Min 21 yrs; Facility – Demand Loan

Repayment – i) By refund in case of Non

Allotment or ii) By Regular HL in case of allotment

but not more than 12 months from the date of

disbursement of the loan

REVERSE MORTGAGE LOAN

Age: Above 60 Yrs (First Borrower); When Loan

Jointly with spouse – Age Above 58 Yrs

Should not have more than one surviving spouse –

Undertaking to not remarry during loan term

Loan availed jointly with spouse: Loan Tenor – 15

Yrs if age of Younger Borrower upto 68 Yrs & Loan

Tenor – 10 Yrs if age of Younger Borrower above

68 Yrs

Loan availed in single name: Loan Tenor – 15 Yrs

if age of Borrower upto 68 Yrs and Loan tenor –

10 Yrs if age of Borrower above 68 Yrs


Loan Amount – 90% of value of property (it

includes interest till maturity) Min 3 lacs Max 1

Cr

Loan may be disbursed in Monthly/ Quarterly

Installments or 50% in lump sum and remaining

50% through periodic payments

GREEN HL Financing Green Buildings (Energy Savings – 20-

30% & Water Savings – 30-50%)

Incentives – 5% waiver in Margin, 0.25%

Concession in Interest Rate & Waiver of Processing

Fee

CRE HOME LOAN

The maximum number of houses/flats/plots

will be restricted to 3 under CRE Home Loans

over and above the two units permissible under

Home Loan Scheme.

In cases where total units, including existing and

proposed, exceed 5, the loan proposal will be

processed under SME (CRE). In other words,

CRE Home Loan interest rates will be applicable

to a maximum of 3 units beyond which SME

interest rates and repayment terms will apply.

Any interest concession available under

different tie-up arrangements or under special

marketing campaign will be not applicable on

CRE Home Loans.

ISHUP

(Interest Subsidy Scheme for Housing the Urban

Poor)

Home loan with Central Government subsidy to

EWS /LIG persons

Average Annual Household income – Upto Rs

100000/- (EWS); Rs 100001/- to Rs 200000/- (LIG)

Max Loan Amount Eligible for subsidy – Rs 1 Lac

Loan Term – 20 Yrs including moratorium period

Interest subsidy @ 5% on admissible loan amount

over the full period of loan

Net Present Value of Subsidy discounted @ 9%

payable upfront

PREMIUM HL

Facility- TL or OD (OD as in Maxgain up to Rs 1 Cr

Interest over the tenor of loan- At Card Rate –

1.75% above Base Rate (Present Base Rate- 8%

p.a.) Loan amount- above 75 lacs

YUVA HOME LOAN

Salaried employees of Private Sector, MNCs,

Govt, PSUs & Govt Undertakings

Age: YUVA – 21 to 45 Yrs;

Min NMI – Rs 30000/- ; Expected Rental Income

from proposed property not to be added

Fixed Loan Term of 30 Years

The loan under the scheme will be available

both by way of term loan and overdraft under

Maxgain facility. An option from the customer

in this regard will be obtained at the time of

application.

Repayment – First 36 Months – Only Interest

EMI to be paid from 37th

month onwards i.e. in

204 EMIs

Loan Amount – 20% extra i.e. 1.2 times the loan

as per Regular HL based on EMI/NMI ratio

Benefit under Corporate Salary Package if

employer Company Covered under CSP

If not under CSP, then Festival Loan (DL)

equivalent to 3 Months NMI repayable within 36

Months permitted

HOME LOAN PAL ( PRE-APPROVED LIMIT )

KYC compliance and Assessment of eligible loan

amount are completed before finalization of the

property deal by the borrower

Borrowers get assured of eligible loan amount

and the time to be taken for disbursement

PAL will be valid for a period of4 months

Available at RACPC only Min loan amt - 10 lacs

Housing Loans – Priority sector Advances-

limit is increased from Rs. 20 lacs to Rs. 25 lacs irrespective of location.

CAR LOAN .

TWO SINGLE PRODUCTS NAMELY EZEE CAR

LOAN, ADVANTAGE CAR LOAN HAVE BEEN

MERGED TO KEEP ONE SINGLE PRODUCT

SBI CAR LOAN SCHEME

SBI CAR LOAN SCHEME

Min NAI – Rs 250000/-

Loan Amount:-

Maximum loan amount:


a) For Salaried: The maximum loan amount that

can be granted would be restricted to 48 times

the net monthly income of salaried persons

(i.e., net of all deductions including actual

monthly tax deductions at source).

b) For others: Up to 4 times the Net Profit or

Gross Taxable Income per annum as per

ITR after adding back depreciation and

deducting repayment of all existing loans.

Repayment – Max of 7 Yrs for all

Margin:-

15% of the total cost of the vehicle i.e. “on

road price”. The total cost of vehicle is

inclusive of one time road tax, octroi,

registration, insurance and accessories.

The maximum cost of accessories should not

exceed 5% of the cost of vehicle or

Rs.25,000/- whichever is less. The sanctioning

authority will have the discretion to reduce

the margin by 5% where check off facility

from a reputed employer is available. In case

of customers under Corporate Salary

Package/tie-up, margin is reduced by 5% and

loan is available up to 90% of the on road

price of the vehicle.

Interest Rate-

SBI Car Loan Scheme (TL/OD)- 0.75% above

Base Rate i.e.10.45% p.a. (for all periods).

Network GMs have discretion to quote

concession of 0.25% in interest rate to all

customers who are eligible under the

Corporate Salary Package subject to upper

ceiling on concessions, prescribed from time

to time.

Penal Interest:-

If the irregularity exceeds EMI or Installment

amount, for a period of one month , then

penal interest would be charged @2%

p.a.(over and above the applicable interest

rate) on the overdue amount for the period of

default. If part installment or part EMI

remains overdue, then penal interest should

not be levied. This provision has been made to

avoid application of penal interest on Personal

Segment Loan accounts where stipulated

EMIs or instalments are being paid regularly

by the borrowers. EMI/NMI Ratio:

50% - NAI upto Rs 5 lacs

60% - NAI Above Rs 5 lacs & Upto Rs 10 lacs

75% - NAI above Rs 10 lacs

Processing Fee:-

Processing fee will be recovered on the loan

amount upfront as under:

i) When loans are sanctioned: 0.51% of the

loan amount subject to minimum of Rs.

1020/- and maximum of Rs. 10200/-.

ii) When loans are rejected: 25% of the

Processing Fee will be retained if the

application is rejected after pre-sanction

survey subject to Minimum of Rs. 510/- and

maximum of Rs. 2550/-.

iii) The General Manager of respective

Network at the Circle can reduce processing

fee up to 50% on business consideration.

In case of the takeover of the car loans of Rs.

5 lakhs and above from other banks/NBFCs

the DGM (B & O) and Network Head can give

discretion to waive processing charges up to

50% and 100% respectively.

Free Group Personal Accident Insurance

(Death Only) Cover for HL/Car Loan

borrowers tie up with SBI General Insurance

Comapany Ltd.- The maximum insurance

cover amount has been increased to Rs.50.00

lacs (Home and Car loan outstanding taken

together).

In case of joint borrowal accounts, the claim

amount is payable on a pro-rata basis. The

present insurance cover has been taken for

one year i.e. from 02.07.2012 to 01.07.2013.

CAR LOAN USED

Min NAI- Rs. 100000/-

Net monthly income of applicant(s) should be

at least 2 times of EMI. Vehicle should not be more than 5 Yrs old

Registration book should not be duplicate one;

Certificate of fitness/valuation from a reputed

garage would be required. Repayment within 7 Yrs from date of original sale

Margin- 15% : Loan Amount- 30 times NMI or

2.5 times NAI subject to a maximum of 15 lacs.

Rate of Intt-

Up to 3 years:

7.25% above Base Ratei.e.16.95% p.a.

Above 3 years:

7.50% above Base Rate i.e.17.20% p.a.

CERTIFIED PRE OWNED CAR LOAN


Valuation of Vehicle not required; Vehicle will be

certified by used car dealers

Dealers pay the sellers of used cars without

transferring the ownership in their name

As and when they find the purchaser, the vehicle

is sold and ownership transferred to purchaser

So, Stamped indemnity to be obtained on

Dealer’s letter head to protect Bank’s Interest

Other conditions as applicable to Used Car Loan

Scheme

Rate of Intt- Up to 3 years:

6% above Base Rate i.e. 15.70% p.a.

Above 3 years:

6.50% above Base Rate 16.20% p.a.

CAR LOAN TAKEOVER

Vehicle should not be more than 2 Yrs old under

single ownership

No Insurance Claim should have been availed

Loan with other bank should be a Standard Asset

Interest as per new vehicle if change in ownership

is not envisaged

Reimbursement of costs of unencumbered vehicles

upto 2 Yrs of age permitted

CAR LOAN OD Min Loan - Rs 3 Lac

Facility – OD (ATM, INB, Cheque book)

Margin- 15%

NRI CAR LOAN NRI/PIO – Guarantor & NRI’s/PIO’s Nominee –

Principal Borrower

Age – 21- 65 Yrs (for both); Loan to be repaid fully

before guarantor turns 65 Yrs of Age

NRI (Guarantor) should be employed abroad for at

least 2 Yrs maintaining NRI A/c with SBI for at

least 12 months with min average bal of Rs

50000/- or New Account with USD 5000/- or

equivalent

Guarantor - Min NMI USD 1000 or Min NAI USD

12000

Loan Amount

Loan amount would be given on the basis of

guarantor’s income.

Maximum Loan Amount :- 18 times of NMI

1.5 times of NAI (of Guarantor)

Margin- 15%

Repayment-7 years.

Campaign ‘Top Gear’ during the month of

December 12 –target 50000 cars

CAMPAIGN ‘GRAND PRIX’- Campaign for

achieving specific targets OF 60000 car loans

pan India during Feb & March 2013.

TWO WHEELER LOAN For regular petrol/diesel/gas operated scooters &

motor cycles:

Min. NMI Rs. 6,250/-; or Min. NAI Rs. 75,000/-

For mopeds and battery-operated Two-wheelers:

Min. NMI 5000/-; or Min. NAI 60000/-

Loan – 6 Months NMI or half of NAI


Margin- 15%

SBI STUDENT LOAN

To be sanctioned in the jointly in the name of the

Student and his Parent/ Guardian

LIMIT : a) Max 20 lacs (For Studies Abroad, Ifa

student needs additional loan Top up loan

upto Rs. 30 lacs may be sanctioned))

b) Max 10 lacs (For Studies in India)

Margin- Nil- Loan Upto 4 lacs

5%- Loan Above 4 lacs (Studies in India)

15%- Loan Above 4 lacs (Studies Abroad)

No Security for loans upto 4 lacs - Each ward of a

parent/guardian may be sanctioned loans upto Rs.

4 lakhs individually without insisting for any

security

For Loans Above 4 lacs & upto 7.50 lacs –

Suitable TPG

For Loans Above 7.50 lacs – Tangible Collateral

Security of Suitable value

Moratorium – Course Period + 1 Year or 6

months after getting Job, whichever is earlier

Rate of Intt. w.e.f. 04.02.2013

For loans upto Rs.4 lacs – 350 bps above Base

Rate i.e., 13.20% p.a. currently

Above Rs.4 lacs and upto Rs.7.50 lacs– 375

bps above Base Rate i.e., 13.45% p.a.

currently

Above Rs.7.50 lacs – 175 bps above Base Rate

i.e., 11.45% p.a. currently

• 50bps concession in interest rates for girl

students,

• 1% concession if interest is serviced

promptly during moratorium period


Loan to be repaid in 5-7 Yrs after commencement

of repayment

@ Loans upto Rs. 10 lacs for studies in India and

Rs. 20 lacs for studies abroad are reckoned under

priority sector advances

Students who have appeared in any Entrance

Test, secured passing marks but could not get

admission due to lower ranking and who opt

to pursue the course under Management

Quota in the same Institution or another

Institution for reasons of convenience

(proximity) or choice of course, will be eligible

for sanction of Education Loans.

For courses under Management Quota seats

considered under the scheme, fees as

approved by the State Government/

Government approved regulatory body for

payment seats will be taken.

INTEREST SUBSIDY SCHEME ON EDUCATION

LOAN FOR ECONOMICALLY WEAKER SECTION

PROPOSED BY MINISTRY OF HRD, GOVT. OF

INDIA

@ The scheme is known as Central Scheme to

provide Interest Subsidy for the period of

moratorium on Education Loans taken by

students from Economically Weaker Sections

(EWS) with annual gross parental/family income

upto Rs.4.50 lacs per annum from the academic

year 2009-10.

@ The scheme could be adopted by all scheduled

banks and would be applicable only for studies in

recognized Technical/Professional courses in

India.

@ The subsidy is provided for the period of

moratorium i.e. course period plus one year or six

months after getting job whichever is earlier.

@ The interest subsidy under the scheme shall be

available to the eligible students only once either

for the first undergraduate degree course or the

post graduate degree/diploma in India.

@ The scheme shall be implemented through

Canara Bank, which is the Nodal Bank.

Applicability of Interest Subsidy Scheme to our

Bank : Under Education Loan Scheme, we have

two schemes at present.

i. SBI Student Loan ii. SBI Scholar Loan

Under the above schemes, education loans for

eligible students for studies in India upto a

maximum limit of Rs.10 lacs would be eligible for

interest subsidy.

SBI SCHOLAR LOAN To be sanctioned jointly in the name of the

Student and his Parent/ Guardian

Sanction & Disbursement At Campus/ Branch

designated by Circle near the campus

(After completion of the studies and if the student

desires, the loan account may be transferred to a

branch closer to the place of co-borrower and

preferably to the branch which has made KYC

verification at the time of availing loan for

tracking purposes)

Limit:

a) Max 20 lacs,with tangible collateral security 30

lac SBI Scholar (List A-10 institutes)

b) Max 15 lacs, with tangible collateral security 20

lac SBI Scholar (List B – 63 Institutes)

c) Max 10 lacs with tangible collateral security 15

lac, SBI Scholar (List C- 42 Institutes)

Margin- Nil- SBI Scholar Loan Upto 4 lacs

5%- SBI Scholar Loan Above 4 lacs

No Security- however, Parental Co-obligation may

be substituted by a suitable TPG

Moratorium- Upto 6 months after completing the

course

Rate of Intt. Wef 04.02.2013

175 bps above Base Rate i.e.,11.45% p.a.

currently (Irrespective of the loan amount)

• 50bps# concession in interest rates for girl

students,

• 1%* concession if interest is serviced

promptly during moratorium period,

including course duration.

For select 19 institutes Reduced ROI

institutions: 100 bps above BaseRate i.e.,

10.70% p.a. currently.

SBI LOAN SCHEME FOR VOCATIONAL

EDUCATION AND TRAINING

Objective The Scheme aims at providing

financial support from the Banking System to

those who have the minimum educational

qualification, as required by theInstitution /

Organization running the course eligible

under the Scheme.

Eligibility

• The student should be an Indian National

• The student should have secured admission

in a Course run or supported by a Ministry/

Dept./Organisation of the Govt. or a


Company/ Society/ Organization supported

by National Skill Development Corporation or

State Skill Missions/ State Skill Corporations,

preferably leading to a Certificate/ Diploma/

Degree, etc. issued by a Govt. Organization or

an Organization recognized/ authorized by

the Govt. to do so.

Parameter Guidelines

Courses Eligible Vocational/ Skill

Development Courses of duration from 2

months to 3 years run or supported by a

Ministry/ Dept./ Organisation of the Govt. or

a Company/ Society/ Organization supported

by National Skill Development Corporation or

State Skill Missions/ State Skill Corporations,

preferably leading to a Certificate/ Diploma/

Degree, etc. issued by a Govt. Organization or

an organization recognized/ authorized by the

Govt. to do so. State Level Bankers

Committee (SLBC)/ State Level Coordination

Committee (SLCC) may add other Skill

Development Courses/Programmes, having

good employability.

Minimum Age

There is no specific restriction with regard to

the age of the student to be eligible for the

loan. However, if the student is a minor, while

the parent executes documents for the loan,

the Bank will obtain a Letter of Ratification

from him/ her upon attaining majority.

Quantum of Finance

Need based finance, to meet expenses, will

be considered subject to thefollowing

ceilings:

• For Courses of duration upto 6 months Rs.

50,000/-

• For Courses of duration above 6 months Rs.

1,00,000/-

Expenses Considered for Loan

• Tuition / Course Fee

• Examination / Library / Laboratory fee

• Caution deposit

• Purchase of books, equipments and

instruments

• Any other reasonable expenditure found

necessary for completion of the Course. (As

such courses are localized boarding, lodging

may not be necessary. However, wherever it

is found necessary, the same could be

considered on merits)

Margin Nil

• Simple Interest will be charged during the

study period and upto commencement of

repayment.

• Servicing of interest during study period and

the moratorium period is optional for

students.

• 1% concession in rate of interest to be

provided for full tenure of the loan if full

interest is serviced during the moratorium

period (including course duration). The

interest should be serviced promptly soon

after application but not later than the

following month to avail the concession as

interest application is presently done on the

last day of the month.

Processing Charges Nil

Security No collateral or third party guarantee

will be taken. However, the Parent/ Guardian

will execute loan documents along with the

student, as joint

Parameter Guidelines

borrower (co-borrower). Spouse may be

included as co-applicant wherever applicable,

in addition to Parent/ Natural Guardian.

Moratorium Period

Upon completion of the course, repayment

will start after a moratorium period as below:

• Courses of duration upto 6 months: 6

months from the completion of the course

• Courses of duration more than 6 months: 12

months from the completion of the course

Repayment The loan will be repaid after the

moratorium period in Equated Monthly

Instalments (EMIs) as under:

• Courses of duration upto 1 year: Upto 3

years

• Courses of duration above 1 year: Upto 5

years


SBI SARAL Min NMI - Rs 5000/-; Loan- 12 times NMI (Max Rs

10 lakh); Repayment – 6-48 Months

Individuals other than salaried person not eligible

Min Loan- 10000/- (R & SU) & 24000/- (Metro &

Urban)

Max Loan- 10 lacs

EMI/NMI Ratio- 50%

Rate of Intt- 850 bps above Base Rate i.e.,18.20

% p.a. currently

XPRESS CREDIT Min NMI – Rs 5000/- (Min NMI Rs 3000/- if salary

accounts of entire enterprise with us)

Loan – 24 Months NMI Max 15 lacs;

Repayment- Lower of 60 EMIs or Remaining

Service

Facility- TL only

Interest Rate based on type of Check Off

Full Check off – ROI 5.00% above Base Rate;

Partial Check off – ROI 5.50% above Base Rate;

No Check off – 7.00% above Base rate

EMI/NMI Ratio- 50%

FESTIVAL LOAN SCHEME

Employees with min. 2 yrs service; Self employed

with min. 3 yrs standing. NMI of Rs 3000 & above

Min loan- Rs.5000; Max - Rs.50,000 subject to 4

times the NMI. Loan up to Rs.1 lac to individuals

who are either employees and provide check off

facility or are well established self employed

whose dealings with us is satisfactory.

Type of loan: DL

Repayment: 12 EMIs

Primary: Nil; Collateral: Personal guarantee of

spouse or 3rd party of adequate worth where

check off is not there.

Rate of Intt.-

675 bps above Base Rate i.e.,16.45% p.a.

currently

LOAN AGAINST MORTGAGE OF IMMOVABLE

PROPRERTY

Max age - 60 years

Min NMI - 12000 (For salaried); Min NAI - 150000

(For others)

Loan- 75% of Value of Property but EMI/NMI not

exceeding 50%

Min loan - 25000/- Max - 1 Cr

Repayment (TL) - Max 120 Months or date of

Retirement where check off otherwise 60 months

Repayment (OD) - Max 60 Months, Monthly

reducing DP

EMI/NMI Ratio- 50%

SBI LOAN TO PENSIONERS Age up to 70 Yrs – Max Repayment 60 EMIs

Age 70-72 Yrs – Max Repayment 48 EMIs

Max Loan- 1 lac

(For Family Pensioner – Max Age 65 Yrs)

Loan – Max 12 Months Net Pension (For Family

Pensioner – Max 9 Months Net Pension Max Rs

50000/-; EMI/NMI Ratio- 25%)

Loan above 25000 to be guaranteed by spouse or

any family member/3rd

party worth the loan

ROI- 475 bps above Base Rate i.e.,14.45% p.a.

currently.

SBI LOAN TO AFFLUENT PENSIONERS Age upto 70 Yrs – Max Repayment 36 EMIs

Age 70-72 Yrs – Max Repayment 24 EMIs

(For Family Pensioner – Max Age 65 Yrs Max 1.5

Lac)

Loan – Max 3 lacs ; Max 12 Months Net Pension

(For Family Pensioner – Max 9 Months Net

Pension)

Loan to be guaranteed by spouse or any family

member/3rd

party worth the loan

(Pensioners to submit PAN Number or Form 15H

before availing loan under this scheme)

JAI JAWAN PENSION LOAN

Loan for Pensioners of Armed Forces - Army, Navy

and Air Force & Paramilitary Forces - Coast

Guards, Rashtriya Rifles, CRPF, BSF, ITBP, etc.

Age – Upto 50 Years;

Loan – 48 times Net Monthly Pension; Max 2 lacs


EMI/NMI Ratio- 40%

LOAN FOR SUBSCRIPTION TO IPOs For subscribing IPOs of PSUs and Public Limited

Companies selected by the Circle CMC. IPO should

be rated 3 or better


Eligibility: New customers with sufficient cash

flow evident by last 2 yrs IT Returns & satisfy KYC

norms. Old Customers satisfactorily availing loan.

Amount of Loan: Up to Rs.100,000/- per IPO

subject to maximum exposure of Rs.10 lacs

per person as per extant RBI instructions. Margin: 50%

Security: Lien on shares if allotted

Repayment: Within 30 days of allotment.

Type of Loan: Demand Loan.

ADVANCE AGAINST SHARES Max Loan: Rs.20 lacs (Demat), Rs 10 lacs (Physical

form).

Margin - 50%

Loan > Rs 10 lacs (Physical) & > Rs. 20 lacs

(demat) sanctioned by the Bank Board. Share to

be transferred in Bank name in Loan > Rs 10 lacs

(Physical) and > Rs. 50 lacs (demat)

Repayment : Max: 30 months

Type of Loan – DL/ OD

In compliance of provision of section 19(2) of

Banking Regulation Act 1949, which states that no

Banking Company shall hold shares in any

company, whether as pledge, mortgagee or

absolute owner, of an amount exceeding 30% of

the paid up share capital of that company or 30%

of its own paid up Share Capital and Reserves,

whichever is less, prior Administrative Clearance

from the Product Development & Marketing

Dept., at Corporate Centre was required to be

obtained before disbursal of the loan.

However, Product Development & Marketing

Dept., at Corporate Centre is no more in existence

Therefore, In order to meet the legal

requirements, a Statement of Holding should be

sent to Liability & Transaction Product

Department SME (BU) by E-mail. Email address is

[email protected]

LOAN AGAINST NSCs/KVP

Margin- a) 15% - Loan Against NSC - Staff (Face

Value + Accrued Interest)

Loan Against KVP – Staff (Purchase Value +

Accrued Interest)

b) 40% - Loan Against NSC- Public (Face value +

Accrued Interest)

Loan Against KVP- Public (Purchase Value +

Accrued Interest)

Repayment - 3-5 years or before maturity of

security

Type of Loan: DL/OD

EQUITY PLUS

Loans to employees of reputed PSUs to subscribe

to share of their own company under employee

quota

@ Check Off facility must

@ Undertaking from DDO to obtain NOC from Br

before releasing terminal/ superannuating

benefits

Loan- a) 60% of purchase price, max 18 NMI or Rs

10 lacs.

b) 90% of the purchase price of the shares subject

to a maximum of 18 months NMI or 20 lacs

(ESOP- Employee Stock Option Plan)

Repayment- Max 60 EMIs.

(Our lien be noted against the shares allotted)

ADVANCE AGAINST RBI RELIEF BONDS

Individuals aged over 21 with an assured income

including NRI. To meet investor’s credit needs;

personal/ business needs & contingencies.

Margin - 40% on the face value & accrued

interest.

No repayment is compulsorily proposed. Non-

payment of interest will not attract IRAC norms.

However, borrower has the option to repay even

prematurely. The loan to be liquidated out of

maturity proceeds of bonds.

@ Securities must be transferred by the

beneficiary to the bank.

ADVANCE AGAINST OPEN ENDED SCHEMES

OF SBI MUTUAL FUND

Individuals aged above 21 with Min. NMI of

Rs.5000 / Min. NAI of 50000.

Limit- 10 months NMI/1 year NAI Min.Rs.10,000;

Max. Against demat units -Rs.20 lacs which is

inclusive of any loan granted against the security

of shares, bonds, etc.

Margin:50%

Repayable : 30 EMIs

Type: DL / OD; DL at Fixed/Floating; OD at

Floating rate only

@ Certificate from the concerned Registrar as to

the marking of lien on the demat units to be

obtained & retained with documents.

ADVANCE AGAINST LIC POLICY Margin- 5% (Surrender value of Policy)

Type : Overdraft Only; Repayable- 2 to 3yr


a) Policy to be unencumbered & in full force

(premium must have been paid up to date). Age

of the insured to have been admitted in the

policy.

b) Assignment in favour of Bank on the policy

itself. If assignment is done on a separate paper it

attracts ad valorem stamp duty.

c) LIC’s acknowledgement to be obtained. OD may

be granted against an endowment policy,

anticipated endowment policy; policy issued by

the Postal department.

d) Whole life policies are payable in the death of

the policy holder and hence are not preferable.

Policies taken for the purpose of payment of

estate duty are also not acceptable. It should

stand in the name of the borrower.

e) After the closure of the loan the borrower

should be advised to make a fresh nomination on

the policy as any nomination made earlier would

have got cancelled automatically by the

assignment.

f) Standing Instruction should be obtained for

payment of the premium so as to policy may not

lapse on account of nonpayment of premium.

SBI GETS

A scheme for loan against units of SBI Gold

Exchange Traded Fund christened ”SBI Gets

Short Duration Loan” and “SBI Gets Long

Duration Loan.

SBI Gets Short Duration & Long Duration

Loan

Purpose

For meeting contingencies and needs of

personal nature and not to be used for

speculative purpose.

Eligibility Existing individual customers with

good past relationship are eligible.

Nature of Facility Demand Loan

Margin 50% of the prevailing market prices of

the SBI GETS as reported in the leading

Financial Dailies

Interest Rate:

SBI Gets Short Duration Loan

450 bps above BASE RATE i.e.12.75% p.a.

currently

SBI Gets Long Duration Loan

600 bps above BASE RATE i.e.14.25% p.a.

currently

Security Pledge of the Demat units of SBI

GETS

Procedure for creating pledge over

units of SBI GETS

1. The lending branch should open an account

with the Bank’s DP Unit (if not already

opened).

2. The borrower should be advised DP ID and

DP account number of the branch with

instructions to authorize his DP to pledge the

securities in the name of the lending branch.

The borrower has to give these instructions to

his DP

3. The lending branch should advise the

Bank’s DP Unit its

consent to accept the specified securities as

pledge.

4. The Pledge Advice received from the Bank’s

DP Unit should be kept along with the other

loan documents.

Transfer of units

SBI-GETS

Units of SBI-GETS must be transferred in the

name of the Bank when there is a default and

outstanding is over RS.20 lacs.

Repayment

SBI Gets Short Duration Loan

The loan is to be liquidated within a maximum

period of 12 months. The repayment should

be made in Equated Monthly Installments

(EMIs)

SBI Gets Long Duration Loan

The loan is to be liquidated within a maximum

period of 36 months.

The repayment should be made in Equated

Monthly Installments (EMIs)

Authorized Branches Branches having Demat

facility and incumbency of 3 or above.

Documents The branch will obtain the

following:


Pre-sanction:

a) Application Form

b) Passport size photograph

c) Proof of Identity / Proof of residence /

Proof of income

d) Proof of official address (for other than

employees) Shop and Establishment

Certificate / Lease Deed /Telephone Bill.

e) Latest Statement of Account issued by SBI

Funds Management Ltd. indicatingdetails of

units held.

Post Sanction:

a) DP Note and DP delivery letter

b) Original Statement of Account of SBIFM

indicating noting of lien.

c) Post dated cheques (where no check-off

facility is available) or letters relating to

check-off facility

d) Arrangement Letter

e) Asset & Liability Statement

f) Opinion Report

In case account is Irregular:

a) Letter to borrower advising irregularity in

the Account.

b) Monthly Statement of Irregularity.

d) Arrangement Letter

e) Asset & Liability Statement

f) Opinion Report

Declaration A declaration should be obtained

from the borrowers indicating the extent of

loans availed of by them from other branches

against shares / debentures / units of mutual

funds with a view to ensuring compliance

with RBI stipulation of maximum amount of

such loans not exceeding Rs. 10.00 lacs and

Rs. 20.00 lacs

against securities held in physical and

dematerialized forms, respectively, which is

inclusive of shares / debentures and mutual

funds.

LOAN AGAINST THE UNITS SBI DEBT FUND

SERIES (SDFS)

Bank has developed a scheme for loan against

units of SBI Debt Fund Series christened

“SDFS Short Duration Loan” and “SDFS Long

Duration Loan”.

Scope of the Scheme- The scheme covers

short term advances to individuals against

primary security of Demat units of SBI Debt

Fund schemes of Fixed Maturities (FMPS).

The scheme covers long term advances to

individuals against primary security of Demat

units of SBI Debt Fund schemes of Fixed

Maturities (FMPS).

Purpose- To meet contingencies and other

personal needs. The advances should not be

granted for subscribing to orboosting sales of

another scheme ofmutual funds, for the

purpose ofshares/ debentures or for any

speculative purposes.

Eligibility- A. Individuals over 21 years with a

steady source of income who are

B. Employees

C. Professionals, self employed and others

who file income tax returns.

D. Engaged in agricultural and allied activities

E. Pensioners of central and state

governments, defense establishments,

POSUs/Public Sector Banks.

F. Non Resident Indians holding a valid Indian

Pass Port with a steady source of income.

G. Non Resident Indians holding a valid Indian

Pass Port with a steady source of income.

Age- Maximum Age limit in the case of

individuals – 65. Income of spouse can be

taken into account for computing the

eligibility amount provided he/she guarantee

the loan or is co-borrower (being a joint

holder of the security).

Income Employees : Net Monthly Income

(NMI) Rs.5000/= (net of all deductions

including tax payable)

Self employed – Net Annual Income (NAI)

Rs.50,000.00

Loan amount- Minimum: Rs.10, 000.00.

Maximum: 20 lacs subject to

(a)Employees/ Pensioners : 10 times of NMI

(b)Self employed: One year’s NAI.

Valuation- The security should be marked to

market on a weekly basis i.e., the value

determined based on the lower

of NAV/repurchase price on any day

of the week.


Lien on the units.- The statement of account

of the FMP certifying that a lien has been

marked by the Registrar would need to be

retained along with the loan documents.

Investor Request & banker Request for noting

of lien on the units will be as per Annexure

A & B respectively.

Type of Loan-

“SDFS Short Duration Loan”

Overdraft or Demand Loan with a maximum

repayment period of 12months.

“SDFS Long Duration Loan”

Overdraft or Demand Loan with a maximum

repayment period of 36 months.

Rate of Interest- 4.5 % above Base Rate.

Currently 14.00 % p.a.

Processing Fee- 0.50% of the loan amount.

Minimum Rs.100.00