Escolar Documentos
Profissional Documentos
Cultura Documentos
BCC:BR 108/432
CIRCUTAR TO ALI BRANCNES AND Of FICES IN
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Master Circular
On
Page | 1
INDEX
Sr.No.
TOPIC
Page
No.
(A)
INTRODUCTION
(B)
PRODUCT PROFILE
II
19
III
22
(C)
ANNEXURES
1.
24
2.
25
3.
29
4(a).
30
4(b).
31
5.
32
6.
35
7.
38
8.
40
9.
42
Page | 2
Introduction
Baroda Traders Loan (BTL) is one of the key products of Retail Loan basket available against
the security of immovable property/ies, which caters to the financial needs of business
entities engaged in trading of permissible goods.
The product provides hassle free advances for trading activities and therefore has received
good response from the traders as well as our operational units. The credit limits are
assessed on the basis of the projected turn over and the advance value of the property
offered as security.
Further, a new product Baroda Traders Loan against Gold Ornaments/ Gold
Jewellery/Gold Coins was launched on 24.09.2010.
As per the scheme guidelines of Baroda Traders Loan, Borrowers are not considered any adhoc/ excess over the limit sanctioned under the Scheme. Based on the feedback received
from Zones/Regions, a need was felt to meet the emergent working capital requirement
arising out of peak season requirements, delayed payments by debtors, tax payment etc.
With a view to cater to such financial needs of our existing Baroda Traders Loan borrowers,
a new Retail Loan Asset product named Baroda Traders Gold Card Scheme was
launched on 30.04.2013. The Scheme provides for sanctioning of additional limit to the
extent of 20% of the sanctioned limit under Baroda Trader Loan. This should enable our
operating units to satisfy the needs of our existing borrowers with good track record.
In order to build a customer centric and competitive presence under Retail Lending, Bank
has reviewed the Traders Loan product with superior product features and competitive
pricing which will help the Bank to be the preferred bank for quality customers, while
managing the risk on the book and ultimately driving profitability for the Bank. Accordingly,
major parameters of Traders Loan scheme has been modified and introduced risk based
pricing linked to Bureau score of the applicant/s w.e.f. 23.05.2016.
The key modifications as per the revised guidelines of Traders Loan include the following:
Risk Based Pricing: Internal Rating linked Rate of Interest for Traders Loan
Stipulation of Bureau Score Cut off
Enhancement in maximum amount
Relaxed margin & security norms
Discontinuation of scheme of Traders Loan against Gold Ornaments / Jewellery
With the modifications in ceiling on maximum limit and substantial reduction in rate of
interest for quality proposals coupled with other modifications in the parameters/ guidelines,
our Baroda Traders Loan product have become more competitive and robust in the market.
The detailed features of the Baroda Traders Loan product are mentioned in the following
sections.
Page | 3
Parameter
Target Group
Guidelines
Individuals, Proprietorship & Partnership Firms, Private
Limited Companies and Registered Co-operative societies
engaged in trade of any commodity / goods in physical
form required by the community and trading in them is
not prohibited by law or opposed to public interest.
Dealers in Silver / Gold Jewelery.
Eligibility
3
4
Nature of Facility
Purpose
Page | 4
Maximum:
Metro branches
: Rs.10.00 Crores
Urban branches
: Rs.5.00 Crores
Semi Urban branches : Rs.3.00 Crores
Rural branches
: Rs.1.00 Crores
Page | 5
Bureau score
based validation
(For fresh
sanctions and
enhancements)
Page | 6
Rate of Interest
Page | 7
Repayment
Period
Page | 8
dates for all Retail Loans, out of which the preferable date
convenient to the borrower, considering the salary date/
monthly remittance dates etc. In any case, even in case of
loans with moratorium also, the dates - principal demand
date/ interest demand date/ first repayment start date
should be uniform for a particular account and should be
08th or 16th or 25th. The above guidelines are applicable to
all the fresh sanctions of Retail Loans w.e.f. 10.09.2016.
9
Credit Rating /
Cut off
10
Page | 9
Valuation of Property:
Age of Property
a.) In case of loans:
Page | 10
11
12
Sanctioning
Authority
Documentation
Page | 11
13
Insurance
14
Unified
Processing
charges
Page | 12
15
Mortgage
Creation charges
16
Pre-payment
Charges
Page | 13
17
Commitment
charges
18
Priority Sector
Classification
Take over Norms
19
20
Other Provisions
Page | 14
Page | 15
21
Deviation powers
22
Baroda Traders
Loan against
security of Gold
Ornaments /
Gold Jewellery /
Gold Coins
Page | 16
23
24
Preventive
Vigilance
Product
Finacle
Code
Ascrom Code
LA162,
OD006,
OD017
710
LA177,
OD018
906, 907
Page | 17
iii.
It is observed that NPAs in Baroda Traders Loan is increasing, which is not a healthy sign.
This indicates that the accounts are not being closely monitored, as branches probably
have a feeling that these are secured advances duly backed up by tangible securities.
The objective of Baroda Traders Loan is to provide a simple hassle-free and security linked
advance, where neither the drawing power is determined by value of stock nor traders are
required to submit various financial statements and monthly stock statements. It does not
mean that due monitoring of the account is to be neglected. For ensuring proper health of
the account it is very much essential that the conduct of the account and turnover in the
account is monitored by the branches carefully to ensure that the assets are not allowed
to become NPAs.
Branches should, therefore, diligently monitor all Baroda Traders Loan advances
accounts.
Page | 18
Guidelines
Commission Agents/Arthias, engaged in Retail Trade, who
undertake responsibility of realization of debtors
All Branches
Overdraft
Purpose
Eligibility
Page | 19
Limit
Rate of Interest
Unified
Charges
Period
Review Charges:
As mentioned in Traders Loan Scheme
-12- months, subject to annual review
Repayment
On demand
Sanctioning
Authority
Deviation powers
Page | 20
Other conditions
Other Parameters
OD023
Page | 21
Credit Rating
Purpose
Overdraft
Individuals, Proprietorship & Partnership Firms, Private Limited
Companies and Registered Co-operative Societies engaged in
trade of any commodity/goods and have been sanctioned
overdraft facility under Baroda Traders Loan Scheme above Rs.25
Lacs and fulfilling the following criteria:
1. Existing account in Standard Asset Category for last 2
years
2. No major inspection irregularity in the account
Minimum BTL 4 for limit up to Rs.200/- Lacs including
proposed limit under Baroda Traders Gold Card.
Obligor rating of minimum BOB-4 for limit above Rs.200/Lacs.
To meet the emergent working capital requirement arising due to
peak season requirements, delayed payments by debtors, for tax
payment, etc.
Assessment of limit:
The credit limit is to be considered as under:
20% of the sanctioned Baroda Traders Loan Limit
OR
70 % of realizable value of immovable property (including
realizable value set aside for sanctioning of regular Baroda
Traders Limit), whichever is lower.
Margin: 30% of realizable market value of immovable property
In case of other securities like FDRs, Life insurance
policies, NSCs, Government Bonds etc.:
20% of the sanctioned Baroda Traders Loan limit
OR
The residual portion of the value of securities after keeping
sufficient margin as under for the overall limit, whichever is
lower.
Margin:
10% on Banks own FDRs.
15% on the surrender value of Life Insurance Policies,
NSCs, Government Bonds etc.
(The above margin is to be worked out for arriving total limit of
Traders Loan Limit + Traders Gold Card Limit)
Page | 22
Security
Rate of interest
Processing charges
Documentation
Sanctioning
Authority
Baroda Traders Loan against security of Gold Ornaments / Gold Jewellery / Gold
Coins:
The scheme discontinued w.e.f. 23.05.2016.
Page | 23
Annexure-1
LIST OF DOCUMENTS/PAPERS TO BE SUBMITTED BY APPLICANTS
1.
2.
3.
4.
5.
6.
Financials (wherever applicable) - Last two years, Estimated for current year &
Projected for 2 years.
Declarations on annual sales supported by Returns/Assessment on Sales Tax,
Income Tax etc.
Audited balance sheet need to be submitted by traders having total
sales, turnover or gross receipt in business for the previous year
relevant to the assessment year exceeds Rs.1 Crore (from the
assessment year 2013-14).
In order to undertake Credit Rating in CRISIL module for loans above
Rs.200/- Lacs, all necessary financial papers to be submitted.
7.
8.
9.
10.
11.
12.
13.
14.
Guarantors
and
Page | 24
Annexure-2: CREDIT RATING MODEL FOR BARODA TRADERS LOAN UPTO Rs.200
Lacs (BTL MODEL UNDER RETAIL RATING MODELS)
Summary of Various parameters allocated marks and justification:
S. No.
Parameter
Max. marks
1
Compliance of Basic Business Requirements
15
2
Business Performance
20
3
Financial Ratios
15
4
Conduct of Account (with our /Other bank)
30
5
Adequacy and nature of securities
20
6
Total Marks
100
7
Bonus Marks
8
7
Negative Marks
(-)5
8
Cut Off Marks for considering the proposal
Minimum 50%
9
Rating upto Investment Grade
BTL-6
Justification for considering the parameters and allocation of marks:
Compliance of basic business requirements: Due weight has been given for Required
Licenses and other statutory requirements, location of shop and competitions and experience
/market reputation of the entrepreneur as well.
Business Performance: Good performance of sales, earning profit and ploughing back the
profits into business for increasing net worth are the basic indicators of a good trading unit
which is the target point of BTL hence due importance is given in the rating system for
achievement of projected sales and plough back of profits.
Financial Ratios: Allocation of marks on the basis of financial ratios has been done as per
Retail Loan policy under Domestic Loan Policy 2009 and Draft Loan Policy 2012.
Conduct of Account: Timely repayment of installment /interest is an indication of good
health of account. Therefore, marks have been assigned depending upon the period during
which obligation is met. Another important aspect of discipline in the conduct of account is
routing of sale proceeds through the account. Accordingly marks are assigned for better
discipline in the account.
Adequacy and nature of securities. : Baroda Traders loans are basically advance against
the mortgages with certain limitations on eligible limits depending on the sales turnover.
Hence adequacy and nature of collateral securities have to play a vital role in securing the
advance. Self occupied residential properties are the most valuable assets for any person and
he takes utmost care to preserve the same. Accordingly maximum marks are assigned for self
occupied residential properties and similarly minimum marks are assigned for open plot of
land.
Bonus marks: Bonus marks to the maximum of 8 ( 2 for each parameter) have been
assigned for offering liquid securities, continuous increase in sales , TNW and for units older
than 5 years old.
Negative Marks: Deviation on any parameter of a structured product make the proposal
more risk prone , hence minus 5 marks have been assigned if any deviation is sought /
considered in any retail loan proposal.
Page | 25
I
a
b
c
II
1.
a
b
c
d
2
Max
Marks
15
5
5
5
20
10
10
8
5
0
a
b
c
3
a
b
c
d
e
5
5
3
1
0
(-) 5
1
a
b
c
d
e
RATIOS
Current Ratio
1.33 and above
Below 1.33 and upto 1.20
Below 1.20 and upto 1.10
Below 1.10 and upto 1.00
Below 1.00
15
5
5
3
1
0
(-) 5
2
a
b
c
d
D E Ratio
3.00 and below
Above 3.00 and upto 5.00
Above 5.00 and upto 6.00
Above 6.00
10
10
4
0
(-) 4
III
Marks
awarded
of
5
5
3
0
Page | 26
IV
30
10
a
b
c
d
3
a
1.
a
b
c
d
2
V
1
a
b
c
2
a
b
c
d
a
b
c
d
VII
10
5
0
-5
10
If yes 0,
if no 5
If yes 0,
if no 5
20
10
10
8
5
10
10
TOTAL MARKS
VI
10
10
8
5
0
8
6
0
100
8
2
Negative Marks
If any deviation is proposed/considered for the proposal
including concession in Interest Rate /Processing Charge
(-) 5
5
100
2
2
2
Page | 27
S No.
1
2
3
4
Score
% Score
Grade
Investment
/Noninvestment
Rating
(BTL 1 to BTL 10)
Score Awarded
Rating
Grade
Risk Perception
More than 95 %
BTL -1
Investment Grade
Low Risk
BTL-2
Investment Grade
Modest Risk
BTL -3
Investment Grade
Satisfactory risk
BTL- 4
Investment Grade
Fair Risk
BTL-5
Investment Grade
Acceptable Risk
BTL-6
Investment Grade
Hurdle Rate
BTL-7
Caution List
BTL-8
Off Credit
BTL-9
Off Credit
BTL-10
Off Credit
Page | 28
Annexure 3:
Type of Loan:
A/c.No.________________
Limit Sanctioned: Rs._______Lac.
Particulars
Details/Response
2.
4.
5.
6.
7.
8.
9.
10.
12.
Date:
(Signature)
(Name of Officer)
EC No: ________
Page | 29
Annexure -4 (a)
FRAUD PREVENTION CHECKLIST TO BE KEPT WITH THE LOAN DOCUMENTS
(Pre sanction Stage)
Following information to be verified by the Branch head
Name of Branch .
Name of Account .
S. No.
Guidelines
Compliance
KYC Compliance
Details of the
Document and Date
of verification
1.1
1.2
1.3
2
2.1
2.2
2.3
2.4
2.5
2.6
3
3.1
3.2
4
4.1
4.2
5
6
6.1
6.2
7
8
8.1
Comments of Branch
Head
Confirmed or any other
comment
Page | 30
Annexure -4 (b)
FRAUD PREVENTION CHECKLIST TO BE KEPT WITH LOAN DOCUMENTS
(Post Sanction stage)
Following information to be verified by the Branch head
Name of Branch
Name of Account..
S.
No.
1
1.1
1.2
1.3
1.4
2
2.1
2.2
2.3
2.4
3
3.1
3.2
3.3
Guidelines
Compliance
Comments of Branch
Head
Page | 31
(Address)
Dear Sir,
Re:
Amount
(Rs.)
Purpose
To secure the above credit facilities, equitable mortgage of the property situated at
. belonging to has been offered.
We are
sending the documents of the property with this letter and shall thank you to please submit
your complete Opinion Report in respect of the clear and marketable title to the property,
certifying non-encumbrances of the property.
Your report should be comprehensive and must cover the following points:
1
Description & Area of property proposed to be mortgaged with boundaries (a.Give the
specific number & address of plot, house, bldg., flat, shop, etc. b.State specifically
whether property is in agricultural, non-agricultural, commercial, residential or industrial,
area.)
Name of mortgagor & his Status in the A/c (Whether Sole proprietor, Partner, Director,
Karta, Trustee, Agent or Guarantor or Co-borrower)
Whether the mortgagor has sufficient title and capacity to contract for creation of
mortgage (Not a minor, Lunatic or undischarged insolvent, etc.)
Nature of mortgagor's right or title in the Property(Whether lease hold, free hold, coowner, or joint owner or any other type-state specifically) and how it is derived (whether
Page | 32
Sr.
No
Type/Nature
Document
Whether title is clear and property is free from any encumbrance (enclose relevant
receipts of search)
(a)
No of Years (30 years normally) for which search made in Subregistrar's/Registrar's
Office
(b)
If Name is mutated in municipal records and
(c)
If Name is shown in Revenue/ Land records
10
11
Whether there is any Bar/ restriction for creation of equitable mortgage under any Act,
state law or rule/notification(like Ceiling Act, Land Acquisition Act, State Coop. Societies
Act, Societies Registration Act or Apartments/Flat Ownership Act or Income Tax Act)
12
Whether any permission /consent/ no objection is required & if so, it is obtained (State
the letter no. and the Authority / Statutory Body/Court concerned)
13
14
List out the Title Deeds to be deposited to create mortgage by Deposit of Title Deeds in
favour of Bank by abovesaid mortgager Mr./Ms.______________
15
Whether all original deeds are available and scrutinised Deeds are duly
executed/stamped and registered. There is no doubt/ suspicion as to their genuineness
or existence
of Date
Execution
of No.
&
Date
of Parties
Registration/Lien
in
revenue records/ builder's
records/ society's records
Page | 33
16
Final certificate/opinion
The above are the minimum points/ broad heads to be covered / elaborated/ discussed
in your report.
These points/headings are indicative and not exhaustive, depending upon the situation
and circumstances.
The opinion-cum-report has to be given by you personally on your letter head under
your signature.
You are required to submit the opinion/ report only after getting all clarifications and
required documents, after thorough perusal and when fully satisfied.
Yours faithfully,
..
(SMS Head / Branch Manager)
Page | 34
I/We hereby apply you for the working capital limit by way of Overdraft/ Demand Loan limit of Rs.
___________________________ and append below the related information:
Res:.
Off.
Mobile:
Date of Establishment
Line of Activity
Present Bankers/Branch
Amount
Age
Educational Qualification
the 1.
2.
3.
Page | 35
Business Activity
Bankers
BUSINESS PERFORMANCE :
Summary of Performance
31.03.
31.03
`.
31.03
31.03
3. SECURITY
A) Details of Immovable Property :
Property standing in the name of
Location of Property :
House No.
Street
Town
Taluka
District
State
Value of Property as per valuation report dated _______________
`. ______________
B) Details of Other Collateral Securities :
Description
Value
Page | 36
Limit Required
Nature of Security
Value of Security
Other Remarks :
Place:
Date :
Signature of the Applicant
Page | 37
WORTH
NAME OF BORROWERS
WORTH
Limit
Advance
Security
Value
of Outstanding
Comment
on
the
Conduct of Accounts
Summary of
Performance
31.03.____
Estimated
current year
31.03____
for Projections
31.03.____
`.
Sales Tax Assessment Order dated _______ for the year _____ `.
Sales Tax Return dated __________ the year _____________
`.
Is the anticipated turnover reasonable, keeping in view the applicant's experience/ past
performance and the market potential in the locality ?
SECURITY :
Description
Values
COMPUTATION OF LIMIT
1) Last Year's Actual Sales
2) Current year's Sales during the completed months
3) Current year Annualised Sales
= Completed Months Sales 12
Completed Months
4) Projected Sales
5) Accepted Projected Sales
6) Permissible Limit (20% of accepted projected sales)
7) Advance Value of the Collateral Security
8) Sanctioned Limit (6) or (7) whichever is less
Particulars of Limit
Nature of Facility
Nature
Security
Sanctioned/ Recommended
Repayment Schedule
Major terms & conditions
Sanctioned / Recommended
Page | 39
2.
Business Activity
3.
Business address
4.
5.
6.
Comments on situation of shop and business perspective and reputation in the market:
7.
:
:
iii) Comments on the antecedents, business dealings and reputation of the guarantor/s:
(vii) Views on the valuation of the property after making discreet enquiries about the realizable value of
property after taking into account factors like location, occupation.
(state whether value is over stated)
Place:
Date:
SIGNATURE
Name of the officer:
Page | 41
BRANCH: _______________________________________________
F - 135
I give below the particulars of my self, my family and my Assessts & Liabilities as at ___________________.
1. Name in Full: _________________________________________________________________________
2. Date of Birth:______________________________ & Age : _____________
3. Fathers/ Husbands Name : ______________________________________________________________.
4. Residential Address :
PERMANENT
__________________________________
PRESENT
________________________________________
__________________________________
________________________________________
__________________________________
________________________________________
__________________Pin:_____________
________________________Pin:_____________
5. Telephone Numbers.
Mobile
: _______________________________________
: _______________________________________
A. If in service
Name of employer and Address
:
: _______________________________________
_______________________________________
_______________________________________
: _______________________________________
Designation
B. If in Business/Professional
i) Name/s of the firm/company
and its Address
ii) Line/s of activities
iii) Since when established
iv) In which capacity he/she is
representing
7. Annual Income
8. PAN (if an Income Tax Assesses)
9. Details of Assets
:
: _______________________________________
_______________________________________
_______________________________________
: _______________________________________
: _______________________________________
: _______________________________________
: Rs.____________________________________
: _______________________________________
:
: _______________________________________
: _______________________________________
: _______________________________________
iv) Others
: _______________________________________
Page | 42
: _______________________________________
: Rs. ____________________________________
Date of issuance
(Rs.)
(2)
Sum assured
(3)
Branch Name
(in Rs.)
(4)
Annual Premium
up to what per.
(5)
Premium Pai
Total Amount
Rs. (Face Value)
Whether fully
Paid (yes/No)
Cur. Market
Value Rs.
(6)
Certificate No.
A/C No.
C. Term Deposits
FDR/RD/YSJY
A/c No.
Date
Fvg.
Amount
Rs.
Name of Bank
Branch
Due date
Maturity
Value Rs.
Amount
Rs.
Due
Date
Maturiy Value
Rs.
Date of Purchase
Issuing Office/Post
Office Add.(includingMutual Funds)
: ____________________________________
____________________________________
: ____________________________________
: ____________________________________
____________________________________
: Rs._________________________________
Page | 43
: ____________________________________
: ____________________________________
: ____________________________________
: ____________________________________
: ____________________________________
Name
(2)
:
Relationship
(3)
Age
(4)
Present Address
(5)
(4)
present /at
maturity)
(5)
I am/I am not (tick as applicable) a Director in ____/any Bank . There is no litigation against me or the firm/ Co.
in which I am the proprietor/ a partner/ a Director.
The name of the firm /Co. or the name of the partners/Proprietor/Director of the firm/ Co. is not the caution list
of RBI/ECGC.
The proprietor/partners/directors of the firm/Co. is/are not the Directors in any Co-operative Bank.
I also declare that the above information is complete, true and correct.
Signature of the Applicant/Co-Applicant /Guarantor : ___________________________
Encls:
Place: _____________________
Date: ______________________
Page | 44