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RETAIL BANKING

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Title: RETAIL BANKING


1

RETAIL BANKING
2
CONTENTS
  • 1.1 Overview
  • 1.2 Objective
  • 1.3 Products/Services
  • Operative account
  • Non operative account
  • Miscellaneous services
  • 1.4 Instruments of operative account
  • 1.5 Types of operative account
  • 1.6 Savings account definition /facilities
  • 1.7 Types of flexi deposit
  • 1.8 Current account definition/facilities
  • 1.9 Advances- definition /types
  • 1.10 Cycle of operative account
  • 1.11 Types of non operative account
  • 1.12 Types of deposits
  • 1.13 Cycle of non operative account
  • 1.14 Types of loans
  • 1.15 Cycle of loans
  • 1.16 Types of miscellaneous services

3
Overview
  • Retail Banking denotes catering to the
    requirements of retail customers
    viz..individuals,professionals,self employed etc.
  • Retail banking has seen a transformation over
    the past two decades with respect to business
    focus, delivery channel emphasis and the overall
    approach to the banking business. Today, given
    the greater stress being placed on mass
    customisation, banks are increasingly relying on
    technology to provide customised solutions to
    consumers.

4
Objective Of Retail Banking
  • The objective of the Retail Bank is to provide
    its target market customers a full range of
    financial products and banking services, giving
    the customer a one-stop window for all his/her
    banking requirements. The products are backed by
    world-class service and delivered to the
    customers through the growing branch network, as
    well as through alternative delivery channels
    like ATMs, PhoneBanking, NetBanking and
    MobileBanking.

5
Products/Services Offered
  • Operative accounts
  • Non operative account
  • Miscellaneous services

6
Operating account
  • The Main services offered in this sector are
  • Savings account
  • Flexi deposits
  • Auto sweep
  • Reverse sweep
  • Current account
  • Advances

7
Instruments of operative accounts
  • Cheques
  • Demand drafts
  • Managers cheques
  • Cash

8
Savings account
  • A minimum quaterly balance needs to be
    maintained in this type of account.The minimum
    balance criteria differs from bank to bank.
  • Non Maintenance of minimum balance in the
    account attracts a quarterly fee which again is
    determined by the bank and varies for each bank

9
Facilities offered for Savingsaccount
  • Debit-cum-ATM card
  • Auto Invest Account
  • Internet Banking
  • Phone Banking
  • Anywhere Banking
  • Standing instructions
  • Doorstep service

10
Flexi Deposit
  • There are two types
  • 1) In a savings account,the amount held over and
    above the prescribed minimum balance would be
    automatically put in a term deposit earning
    higher return for customer.This is termed AUTO
    SWEEP

11
Auto Sweep
  • Eg If A hold an savings account with bank
    ABC where the minimum balance is Rs 5000.If
    A has a balance of Rs 6000 in his account the
    remaining 1000 ( 6000-5000) will be
    automatically put in a term deposit.

12
Reverse Sweep
  • Whenever the customer issues a cheque which
    brings down his savings account balance below the
    prescribed limit,the shortfall amount will be
    automatically taken from the term deposit.This is
    called reverse sweep.

13
Reverse sweep
  • Eg Considering the pervious example of A
    where Rs 1000 from his account is held as term
    deposit.If A has issued a cheque for Rs
    1000,when this cheque debits his account his
    balance reduces to rs4000 which is below the
    minimum limit of Rs5000.In such a case Rs 1000
    which was held in term deposit gets adjusted to
    savings account to bring back the saving account
    minimum balance to Rs 5000

14
Flexi Deposit
  • 2)The fixed deposit of a customer is held in
    units of 1000 or so as prescribed by the bank.In
    case of need the customer can withdraw part
    amount of deposit without closing the deposit.
  • In case of fore-closure,the deposit would earn
    interest at rates applicable for the period run
    without any penalty.

15
Flexi Deposit
  • Eg If A holds a deposit of Rs 10000 with
    bank ABC broken into units of 1000 for a
    period of 6 months.Incase he withdraws Rs 700
    after 3 months.
  • Cal He will earn interest for Rs 10000 for 3
    months.When he withdraws Rs 700 from his account
    the deposit is broken and Rs 1000 is moved to
    savings account.The remaining 9000 will earn
    interest for the remaining time period.

16
Current Account
  • What is Current account?
  • A running account supporting unlimited
    withdrawals and deposits
  • A current account is meant for convenience and
    not to save money

17
Facilities offered for currentaccount
  • Unlimited Withdrawal and Deposit
  • Unlimited Cheque book
  • Demand Drafts and Payorders
  • Funds Transfer ( Local or Anywhere)
  • Collection of Cheques/ Drafts
  • Statements,Advices, Daily statement by e-mail
  • Cash withdrawal and Deposits
  • Multicity Cheque payment facility
  • Anywhere Banking facility
  • Doorstep Banking - Pick up and delivery of
    Currency / Cheque
  • Mobile Banking

18
STANDING INSTRUCTIONS
  • STANDING INSTRUCTIONSStanding instructions can
    be given to the Bank for transfer/remittance of
    funds from one account to other account/s
    maintained in the same branch, any other branch
    of the Bank or any other bank or any other third
    party

19
Advances
  • An advance is a credit facility provided by the
    bank to its customers. It differs from loan in
    the sense that loans may be granted for longer
    period, but advances are normally granted for a
    short period of time. Further the purpose of
    granting advances is to meet the day-to-day
    requirements of business. The rate of interest
    charged on advances varies from bank to
    bank.Interest is charged only on the amount
    withdrawn and not on the sanctioned amount.

20
Advances
  • Bank has a very wide bouquet of types of credit
    facilities which can be tailor-made to suit
    customer specific requirements. In a nutshell,
    the Bank offers

21
Types of Advances
  • Cash Credit
  • Over draft
  • Discounting of bills

22
Cash Credit
  • Cash credit is an arrangement whereby the bank
    allows the borrower to draw amount upto a
    specified limit. The amount is credited to the
    account of the customer. The customer can
    withdraw this amount as and when he requires.
    Interest is charged on the amount actually
    withdrawn. Cash Credit is granted as per terms
    and conditions agreed with the customers.

23
Overdraft
  • Overdraft is also a credit facility granted by
    bank. A customer who has a current account with
    the bank is allowed to withdraw more than the
    amount of credit balance in his account.It is a
    temporary arrangement. Overdraft facility with a
    specified limit may be allowed either on the
    security of assets, or on personal security, or
    both

24
Discounting of Bills
  • Banks provide short-term finance by discounting
    bills, that is, making payment of the amount
    before the due date of the bills after deducting
    a certain rate of discount. The party gets the
    funds without waiting for the date of maturity of
    the bills. In case any bill is dishonoured on the
    due date, the bank can recover the amount from
    the customer.

25
Advances
  • What is the minimum maximum period for which
    customer can avail advance from the Bank?
  • The Minimum period for which an advance may be
    sanctioned starts is one day. The maximum period
    for which an advance can be sanctioned depends
    upon-
  • The Debt Service Capacity of the borrower
    reckoned from the cash flow from the business
    operations and,
  • The purpose of the advance

26
Cycle of Operative account
  • Origination
  • Service
  • Closure

27
Operative Account Origination
Scrutiny verification
Account opening maintenance
Application
Communication
Applicant should submit Account
opening form Address proof Identity proof Self
cheque or cash for minimum balance
Welcomepack With debit card, cheque
book, details of Account sent to customer
Verify and check validity of documents provided
Account opened Cheque book printing Mapping of
signature
28
SERVICING OPERATIVE ACCOUNT
Transactions Fee Charges Interest Reporting Customer Relations
Deposit Withdrawal Frequent Withdrawals Balances overdraws Periodic account statements Transaction profile statement
Transfers Issue of Cheque books/ Account statements Regulatory Reporting
Standing Instructions Duplicate Records
Bill payments Returned Cheques
Issue of cheque books Cancellation of Drafts
Account statements Account closure
Addition/ Changes to account holders
Addition/ Changes to groups
29
CLOSURE OF OPERATIVE ACCOUNT
Request Processing Administration Closure
Customer request for closure Striking balance Collection of unused cheques Closing of accounts
Banks decision to close Status on Standing instructions Uncleared cheques inward Uncleared cheques outward Cancellation of authorization ATM Phone Online Repayment of balance
Transfer to Non-operative account Special conditions Lien Approvals
Fee/ Charges Removal of accounts
30
Non operating account
  • Deposits
  • Loans

31
Deposit Services
  • They can be broadly classified as
  • Fixed deposit
  • Recurring deposit

32
Deposit Services
  • The products or features offered by banks under
    these categories varies from bank to bank
  • Mentioned below are a few of such products
    offered by banks

33
Fixed Deposits
  • Fixed Deposits impose a Simple Interest Formula
    on the Principle amount deposited by the
    customer.
  • Interest can be paid Quarterly, Semi-Annually or
    Annually as req. by customer.

34
Recurring/Monthly Deposits
  • Every month the Customer Pays the Installment
    which is fixed in the beginning.
  • For Preclosure a Penalty of 1 -2 is Charged.

35
Cycle of Non operating Account
  • Origination
  • Servicing
  • Closure

36
Non Operative Account Origination
Scrutiny verification
Opening Of Deposit
Application
Communication
Provide the following Request form Proof of
indentity Cheque or cash for Amount to
be Deposited PAN details or Form 60 for Beyond
deposit of Rs 50000
Validity of documents
Certifcate of Deposit Despatched Stating
maturity Date ,rate of Interest and Amount to
be Earned end of tenure
Deposit opened,details Of maturity maintained On
system If existing customer And holds
account, Mapped to customer Savings account
37
Non Operative Account Servicing
Transctions
Fee Charges
Interest
Reporting
Collect monthly deposit For recurring
deposit Movement for funds To savings
account For reverse sweep Withdraw of funds From
Issue of duplicate Deposit receipt
Monthly Statements with Interest Calculations
Quarterly interest Accrued to account For
recurring deposit For fixed deposit
quarterly,semi Annually or annually
Loss of interest Loss of interest Nominal
charge
38
Non Operative Account Closure
Request
Processing
Payment
Closure
On Maturity Preclosure Renew
If no confirmation Received from Customer The
deposit gets Renewed for another Same
tenure Recover penalty Fee for
recurring Deposit Change maturity date On
system
The principal plus Interest earned during The
tenure Principal plus interest For the period
when The funds where held Pay interest or
reinvest As desired by customer
Certificate of Deposit recovered And deposit
closed By issuing demand draft Certificate of
Deposit recovered And deposit closed Issuing
demand draft
39
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40
Housing loan
  • Housing loans are referred to the loans
  • provided by the banks for the following purposes
  • For construction/purchase of flat/house
  • Repairs/Renovation of existing house/flat
  • Purchase of flat/house resold
  • Purchase of land

41
Home Loan
  • The criteria for providing housing loans differs
    from bank to bank.
  • The eligibility is mainly for Individuals
    Salaried class,businessmen, professionals with
    minimum period of service
  • Age Upto 50-55 years

42
Housing loan sanction
  • The loan amount will be calculated based on the
    value of property the customer is going to buy
    and also based on the earnings of the customer.
  • The loan amount would be 36 times gross salary
    or 60 times net salary of the customer which ever
    is higher.Spouse income also considered
  • Margin 15 on total project cost ( cost of land
    cost of construction)
  • 30 - For repairs

43
Housing loan Interest Rate
  • There are 2 options
  • Fixed rate
  • Floating rate
  • The rate also varies with the tenure selected by
    customer.There is maximum of 20 years tenure
    offered by banks

44
Housing loan Repayment
45
Cycle of a housing loan
  • Origination
  • Verification
  • Sanction
  • Disbursal
  • Closure

46
ORIGNIATION OF HOUSING LOAN
Application
Documentation
Eligibility Criteria
Margin
  • You must be at least 21
  • years of age when the loan
  • is sanctioned.
  • The loan must terminate
  • before or when you turn
  • 65 years of age or before
  • retirement, whichever is
  • earlier.
  • You must be employed
  • or self-employed with a
  • regular source of income

If customer has identified property to Be
purchased Submit housing loan application
Details on next slide
47
Documents for housing loan origination
  • Passport size photograph
  • Proof of residence (This applies only to new or
    non-bank customers, and could be either a PAN
    identity card, voter identification card or
    passport)
  • Sale Deed/ Agreement of Sale
  • Bank account Statement or passbook, for the last
    six months For employees or people in service,
    you also need to provide
  • Salary certificate and other information, if any,
    about your repayment capacity
  • Form 16 or a copy of the Income Tax Returns for
    the last 2 yearsFor self employed and other IT
    assessees
  • IT returns for the last 3 years Receipts of
    advance tax paid
  • Any other information about your repayment
    capacity
  • In addition to the above mandatory documents, you
    are also required to furnish one or more of the
    following documents wherever applicable
  • Letter of allotment from the housing board or
    society
  • Copy of the approved plan
  • Permission for construction
  • Copy of the relative order in the case of
    conversion of agricultural land. (not required
    where the house/flat has been constructed by an
    approved builder)

48
Documents for Housing loan
  • Additional documents required for an old
    house/flat
  • In the case of an old existing house, you will
    need to get a valuation certificate from approved
    valuers as well as a certificate from a
    government approved architect /structural
    engineer regarding the condition of the
    flat/house as well as its remaining life.

49
Housing loan Origination
  • Customers who have not identified the property
    to be bought
  • In-principle approvalBanks give in-principle
    approvals based on the customer income and
    capacity to repay, to enable them to identify a
    house/ flat with full confidence.
  • All loans are at the sole discretion of the
    Bank.
  • Customer needs to identify the property within 3
    months from the loan being sanctioned

50
Verification Processing ofHousing loan
  • Stages in verification processing
  • Scrutiny of the application and documents
  • Verification
  • Processing charges
  • Sanctioning of loan
  • Disbursal of loan

51
Housing loan Verification Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit worthiness of customer Default blac
klisted Any other loans held
Verify the property To ascertain the Market
value Verify the validity of documents
Collect Post dated Cheques,ECS, Standing
instruction from Customer for EMI Collect
0.5-1 Processing charge 80-90 of the value Of
the property Ascertained by the Bank is
sanctioned
Demand draft is Issued to the Builder or seller
of The property after The customer Shows proof
for his margin Contribution
52
Closure of Housing Loan
Request
Closure
Loan account closed and documents pertaining
to The property returned to the customer. Bank
has the authority to sell the property and to
Recover its dues from the sale
proceeds.Amount Left after bank dues are covered
is returned back To customer and loan account
is closed ,post dated Cheques returned Recover
complete dues from customer and return The
property documents.Bank charge a
foreclosure Charge and closed loan account Banks
receive the outstanding balance from another Bank
taking over the loan and returns the
property Document to the bank taking over the
loan Foreclosure charges are paid by the bank
taking over The loan.Loan is closed once all
settlements are done
Loan tenure completed Customer defaults
payments and bank fore closes the
Loan Customer request for foreclosure Custome
r request another bank to take Over the existing
housing loan
53
Auto Loan
  • Auto loan are provided by the banks to
  • Customer for the following purposes
  • To buy
  • A new car, jeep or Multi Utility Vehicles (MUVs)
    (any make or model)
  • An old car / jeep / MUV (not more than 4 years
    old). (any make or model)

54
Eligibility for Auto loan
  • A Permanent employee of State/Central Government,
    Public Sector Undertaking, Private company or a
    reputed establishment or
  • A Professionals or self-employed individual who
    is an income tax assessee or
  • A Person engaged in agriculture and allied
    activities.

55
Auto loan amount criteria
  • There is no upper limit for the amount of a car
    loan. It is limited only by your repaying
    capacity. A maximum loan amount of 2 times the
    net annual income can be sanctioned. If married,
    your spouse's income could also be considered
    provided the spouse guarantees the loan
  • The loan amount includes finance for one-time
    road tax, registration and insurance

56
Margin for Auto loan
  • Margin
  • New vehicles10-15 when loan is upto Rs.4 lacs 
  • 15-20 when loan exceeds Rs.4 lacs
  • Old vehicles 20-30for vehicles upto 2 years old
  • 30-40 for vehicles 2-4 years old

57
Repayment options
  • Repayment period for new vehicles Maximum of 84
    months
  • Repayment period for old vehicles Maximum 60
    months for vehicles upto 2 years old Maximum 36
    for vehicles which are 2-4 years old
  • You may prepay at will with no prepayment penalty
    whatsoever.

58
Interest Rates on Auto Loans
  • 2 options
  • Fixed rate
  • Floating rate

59
Fixed Rate of Interest
  • In the case of a fixed rate loan, the interest
    rate on the loan will remain fixed through the
    entire tenure of the loan

60
Floating Rate of Interest
  • In the case of a floating rate loan, the interest
    rate could decline or rise in line with the
    changes in the Bank's Medium Term Lending Rate

61
Loan Terms
  • Hypothecation When a property is hypothecated
    to a bank it means the original documents
    pertaining to the property will be held with the
    bank until the loan amount is completely repaid
    by the customer.      An authority given to a
    banker, usually a letter of hypothecation to
    enable the bank to sell goods that have been
    pledged to them as security for loan.

62
Life cycle of a Auto Loan
  • Origination
  • Process Sanction
  • Recovery closure

63
ORIGNIATION OF AUTO LOAN
Application
Documentation
Eligibility Criteria
Margin
Loan to Value of the vehice (LTV). Age of the
Borrower (There is a minimum and Maximum age
limit). Tenure of the Loan. Employment Period
(balance years in service for the person
borrowing). Collateral Requirements (normally
the vehicle for which the loan is taken is kept
as a collateral with the financier
Submit auto loan application
Details on next slide
64
Documentations
  • The Documents required for a Salaried Individual
    -
  • Proof of Income - latest 2 attested salary slips
    with TDS certificate/Form 16.
  • Proof of Residence - Ration Card/Driving
    License/Voter I-card/Electricity Bill/Insurance
    Policy.
  • Banking History - photocopies of the bank
    statement showing last 3-months transactions.
  • Photographs.
  • Proof of Identity - Passport Copy/Voter's
    I-card/Driving License/Employer's Card.
  • Signature verification from the bank.

65
Documentation
  • The Documents required for a Self-Employed
    Individual -
  • Balance sheet and PL account for the last 2
    years certified by an Auditor.
  • Acknowledged copy of IT Returns for the last 2
    years.
  • Proof of Residence - Ration Card/Driving
    License/Voter I-card/Electricity Bill/Insurance
    Policy/Telephone Bill.
  • Banking History - photocopies of the bank
    statement showing last 3-months transactions.
  • Photographs.
  • Proof of Identity - Passport Copy/Voter's
    I-card/Driving License/Employer's Card.
  • Signature verification from the bank.
  • Sole Proprietorship Declaration on the letterhead

66
Auto loan Verification Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit worthiness of customer Default blac
klisted Any other loans held
Verify the address And office of customer Verify
the validity of documents
Collect Post dated Cheques,ECS, Standing
instruction from Customer for EMI Collect
0.5-1 Processing charge Sanction 80-90 of The
value of vehicle
Demand draft is Issued to the seller of The
vehicle after The customer Shows proof for his
margin Contribution
67
Closure of Auto Loan
Request
Closure
Loan account closed and documents pertaining
to The vehicle returned to the customer. Bank
has the authority to sell the vehicle and to
Recover its dues from the sale
proceeds.Amount Left after bank dues are covered
is returned back To customer and loan account
is closed ,post dated Cheques returned Recover
complete dues from customer and return The
vehicle documents.Bank charge a
foreclosure Charge and closed loan account
Loan tenure completed Customer defaults
payments and bank fore closes the
Loan Customer request for foreclosure
68
Education loan
  • These loans are specifically offered for the
    pursuit of academics in recognized schools,
    colleges and various other educational
    institutions, both in India and abroad. You may
    avail of this loan facility to meet Eligible
    Courses
  • Graduation courses/ Post graduation courses/
    Professional courses
  • Other courses leading to diploma, degree etc.
    conducted by colleges, universities approved by
    UGC/ Government/ AICTE etc.

69
Education Loan
  • Expenses considered for loan
  • Fees payable to college/school/hostel
  • Examination/Library/Laboratory fees
  • Purchase of Books/Equipment/Instruments/Uniforms
  • Caution Deposit/Building Fund/Refundable Deposit
  • Travel Expenses/Passage money for studies abroad
  • Purchase of computers considered necessary for
    completion of course
  • Cost of a Two-wheeler upto Rs. 50,000/-

70
Education Loan Amount
  • Loan Amount
  • For studies in India, maximum Rs. 10 lacs
  • Studies abroad, maximum Rs. 20 lacs
  • Margin
  • For loans up to Rs.4.0 lacs No Margin
  • For loans above Rs.4.0 lacs The Margins are as
    under
  • In the case of Education in India, the margin is
    5
  • In the case of Education Abroad, the margin is
    15
  • No processing fee/ upfront charges

71
Education loan Interest
  • Loans up to Rs.4 lakh may be advanced at
    interest rate not exceeding PLR of the bank.
    Above Rs.4 lakh, the interest rate may be PLR1

72
Repayment method
  • The repayment would begin one year after the
    course period or six months after you get a job,
    whichever is earlier. You are expected to pay a
    minimum amount equivalent to the EMI on a monthly
    basis. However, you can choose to pay more than
    the EMI, and we do not charge any prepayment
    penalty.

73
ORIGNIATION OF EDUCATION LOAN
Application
Documentation
Eligibility Criteria
Margin
Should be an Indian National Secured
admission to professional/ technical courses
through Entrance Test/ Selection process
Secured admission to foreign university/
Institution
Existing Customer Submit form New
Customer Submit form Provide guarantor details
Details on next slide
74
Education loan documents
  • You will need to furnish the following documents
    along with the completed application form.
    Relevant information would relate to the guardian
    and the student both, when the loan is jointly
    taken. Mark sheet of last qualifying
    examination for school and graduate studies in
    India Proof of admission to the course
    Schedule of expenses for the course Copies of
    letter confirming scholarship, etc. Copies of
    foreign exchange permit, if applicable. 2
    passport size photographs Statement of Bank
    account for the last six months of borrower
    Income tax assessment order not more than 2 years
    old Brief statement of assets and liabilities
    of borrowerIf you are not an existing bank
    customer you would also need to establish your
    identity and give proof of residence.

75
Education loan Verification Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit worthiness of customer
/ guarantor Default blacklisted Any other
loans held
Verify the address And office of Customer/guaranto
r Verify the validity of Documents
Collect Post dated Cheques,ECS, Standing
instruction from Customer for
EMI No Processing charge Sanction loan based On
margin
Demand draft is Issued to the Educational
institute
76
Closure of Education Loan
Request
Closure
Ensure all dues are recovered and account
closed No prepayment charges.Recover
all dues and Close customer account.Return post
dated cheques
Loan tenure completed Customer Request
for foreclosure
77
Personal loan
  • To meet any kind of personal expenses, e.g.,
    marriage, family functions, medical, educational,
    travel expenses, etc.

78
Personal loan Eligibility
  • A State/Central Govt. Employee, employee of
    public sector undertaking/reputed profit making
    public limited company, reputed institutions, MNC
    with a minimum service experience of 2 years.
  • A self employed engineer, doctor, architect,
    chartered accountant, MBA, with a minimum 2 years
    standing. You should be 60 years of age or less.
  • A Pensioner of PSU/Govt. (Central/State)/Public
    Sector Bank who has taken premature voluntary
    retirement and is 60 years of age or less
  • Agents of insurance/KVP/Mutual funds etc. with
    3-5 years standing who are tax assesses and whose
    gross annual income exceeds Rs. 2 lacs.
  • Traders, who have cash flows to repay the loans
    and can provide adequate tangible collateral
    security. They should restrict their banking
    requirements to the branch where the loan is
    proposed to be taken.

79
Personal Loan amount
  • Loan AmountYour personal loan limit would be
    determined by your income and repayment capacity.
    Minimum Rs.24,000/-Maximum 12 times Net
    Monthly Income for salaried individuals and
    pensioners and 1 year's net annual income in case
    of self employed professionals with the under
    noted ceilings Additionally, your spouse's
    income can be considered in calculating the loan
    amount provided he/she guarantees the loan or the
    loan is taken jointly.
  • Salaried individuals and self employed
    professionals Rs.2.50 lacs (Rs.5.0 lacs in
    select Metros and can be further increased to
    Rs.10.0 lacs under certain conditions)For
    pensioners Rs.1.5 lacsFor Traders Rs.1.0 lac

80
Documents Required
  • Documents Required
  • Important documents to be furnished while opening
    a Personal Loan AccountFor existing bank
    customers
  • Passport size photograph.From salaried
    individuals
  • Latest salary slip and Form 16From Self-employed
    individuals and Professionals
  • IT returns for the last two financial years,
  • Proof of Professional Qualification Copy of
    highest professionals degree held
  • Proof of official address.This can include shop
    and establishment certificate/Lease
    deed/Telephone Bill.

81
Repayment
  • The loan is repayable in 48 EMI. You are allowed
    to pay more than the EMI if you wish to, without
    attracting any prepayment penalty.
  • Processing Fee
  • Processing charges are 1 per cent of the loan
    amount. This is amongst the lowest fees in the
    industry. Processing fees have to be paid
    upfront. There are no hidden costs or other
    administrative charges

82
ORIGNIATION OF PERSONAL LOAN
Application
Documentation
Eligibility Criteria
  • For Salaried Individuals
  • Application Form
  • Photograph
  • Proof of date of birth
  • Proof of Residence
  • Salary Slip for last few months
  • Proof of work experience
  • Bank Statement for last few months (where
  • the salary is credited or deposited)
  • Form 16
  • Signature Verification
  • Upfront Processing Fee Cheque (in case of some
  • lenders)
  • For Self-Employed Individuals
  • Application Form
  • Photograph
  • Proof of date of birth
  • Proof of Residence
  • Profit and Loss account and Balance Sheet

Existing Customer Submit form New
Customer Submit form Provide guarantor
details Address proof Salary proof
  • Salaried Individuals
  • Self Employed Individuals

83
Personal loan Verification Processing
SCRUTINY
VERIFICATION
SANCTION
DISBURSAL
Check credit worthiness of customer
Default blacklisted Existing Customer
Verify the address And office of Customer Verify
the validity of Documents
Collect Post dated Cheques,ECS, Standing
instruction from Customer for EMI Processing
charge
Demand draft is Issued to customer
84
Closure of Personal Loan
Request
Closure
Ensure all dues are recovered and account
closed Recover all dues and prepayment
charges Close customer account.Return post dated
cheques
Loan tenure completed Customer Request
for foreclosure
85
Consumer Loan
86
Consumer Loan
87
Loan against Deposit
88
Loan against Securities
  • Leverage your investments in shares, debentures,
    public sector bonds and Government securities for
    loans to meet unforeseen expenses!
  • Avail of loans up to Rs.20.0 lacs against your
    shares/debentures to enable you to meet
    contingencies, personal needs or even for
    subscribing to rights or new issue of shares.

89
Loan Against Securities
  • MarginYou will need to provide a margin amount
    of 50 of the prevailing market prices of the
    shares/ non-convertible debentures be in
  • Documents Required
  • You will be required to submit a declaration
    indicating
  • Details of loans availed from other banks/
    branches for acquiring shares/ debentures.
  • Details of loans availed from other banks/
    branches against security of shares/ debentures
  • g offered as security

90
Loan against securities
  • Purpose
  • For meeting contingencies and needs of personal
    nature. Loan will be permitted for subscribing to
    rights or new issue of shares / debentures
    against the security of existing shares /
    debentures. Loan will not be sanctioned for (i)
    speculative purposes (ii) inter-corporate
    investments or (iii) acquiring controlling
    interest in company / companies.

91
Loans against Securities
  • Repayment Schedule
  • To be liquidated in maximum period of 30 months
    through a suitable reducing DP programme.
  • In case of a default or if the outstanding is
    over Rs.20.0 lacs, the shares/debentures will be
    transferred in the name of the Bank.

92
Loan Against Securities
  • Essential Parameters for acceptance of shares as
    security i)The equity shares and debentures
    offered as security should be fully paid.
    Preference shares will not be acceptable as
    security(ii)The shares/ debentures offered as
    security must be in demat form.(iii)The share/
    debenture should be of a company listed in BSE
    100 Index, except those of SBI (list of BSE 100
    Index companies is available on
    www.bseindia.com).(iv)The market price of the
    security should not have fallen below par for
    preceding 52 weeks.(v)The market price of the
    security should not be as variance with the
    arithmetical average of preceding 52 weeks high
    and low by more than 25 in downward
    direction.vi)( P/E ratio of the company should
    not exceed 40 as published in Economic Times. In
    case P/E ratio is not available the shares/
    debentures of the company should not be accepted
    as security. (vii)The total number of shares of
    the company traded on NSE and BSE should exceed
    25000 on the day of financing and on each
    preceding 2 days.(viii)Security where the market
    price 52 week high is 4 times of the 52 week low
    should not be accepted.

93
Loan against Securities
  • Documentation Application for overdraft limit
    against security of shares/ debentures indicating
    details of shares (i.e. ISIN of the company whose
    shares/ debenture are offered as security, number
    of shares/ debenture offered as security) along
    with borrowers DP ID and DP account
    number.Applicant has to submit consent letter
    agreeing to regularize the account/ replenish the
    margin shortfall, on account of adverse market
    price variation, immediately on receipt of notice
    from the branch. Applicant will also submit
    consent to the condition that in the event of his
    failure to regularize the account immediately,
    Bank has the right to get the security
    transferred in its name and arrange for its sale,
    without any further reference to him. The Bank
    shall exercise this option without prejudice to
    its rights to recover the dues by other means
    also.DP Note and DP Delivery letter.Irrevocable
    Letter of Undertaking addressed to the Bank
    signed by all holders of the shares.Dividend
    collection mandate(s).Either or Survivorship
    Letter(if applicable).

94
Miscellaneous Services
  • Safe Deposit lockers
  • Credit Cards
  • Cheque collection
  • Remittance facility
  • Internet Banking
  • Phone banking
  • Demat Facilities

95
Safe deposit lockers
  • The facility of Safe Deposit Lockers is an
    ancillary service offered by the Bank. The Bank's
    branches offering this facility will
    indicate/display this information.The major
    aspects governing the services are
  • A locker may be hired by an individual ( not
    minor), firms, limited companies, specified
    associations and societies etc.
  • Nomination facility is available to individual
    hirer of Safe Deposit Locker.
  • Loss of key should be immediately informed to the
    Branch.
  • Lockers are available in different sizes.
  • Lockers are rented out for a minimum period of
    one year. Rent is payable in advance. In case of
    overdue rent, the Bank will charge penalty as
    decided from time to time.
  • With standing instruction, the rent may be paid
    from the deposit account of the hirer.
  • The Bank will hire locker only to properly
    introduced persons.
  • The Bank reserves right to break open the locker
    if the rent is not paid inspite of giving notices
    as per the Bank rules and recover charges
    thereof.
  • The locker can be surrendered by the hirers as
    indicated in Memorandum of Letting.

96
Internet Banking
  • Internet Banking" refers to the internet banking
    service offered by the Bank to the user including
    services such as enquiry about balance in the
    Account, details about transactions in the
    Account(s), statement of Account, transfer of
    funds and any other service as the Bank may
    decide to provide from time to time through
    internet.
  • The customer will be given a user id and password
    at the time of opening his account.
  • This id password enables the customer to
    access his bank account through the bank website
    on the internet.

97
Phone Banking
  • The customer will also be given a specific
    telephone code at the time of account opening.
  • With this code the customer can access his bank
    account by calling the help line phone number to
    know his bank balance, make bill payments,account
    to account transfer within the same bank,request
    for Demand draft,cheque books etc

98
DEMAT SERVICES
  • Depository Participant ServicesDepository is an
    organization, which holds your securities in the
    form of electronic book entries. This will be
    done at the request of shareholders through the
    medium of a Depository Participant (DP). If an
    investor wants the services of a Depository, he
    has to open an account with the DP. Further, a
    depository transfers securities as per the
    investor's instructions without actually handling
    securities, through the electronic mode. The DP
    will maintain the account balances of securities
    bought and sold by the investor from time to
    time. The DP will also give the investor a
    statement of holdings, which is similar to a
    passbook.

99
DEMAT ACCOUNT
  • Depository Account OpeningAn investor needs a
    satisfactory introduction and identification to
    open a Demat account with our DP.Every account
    holder in our Bank can open a Demat account. An
    investor has to fill up an Account Opening Form
    and execute an agreement with the DP for opening
    a Demat account.

100
DEMAT SERVICES
  • Benefits of holding Shares in Electronic form
    Transactions take place much faster in electronic
    trading compared to a 30-60 days settlement cycle
    that is presently experienced. Transfer of shares
    is effected within a few days after payment is
    made. Elimination of bad deliveries and all
    risks associated with physical certificate such
    as loss, theft, mutilation, forgery, etc. Easy
    liquidity. No stamp duty on transfer. No
    postage/courier charges. Faster disbursement of
    corporate benefits like rights, bonus, etc.
    Facility for creating charge on dematerialized
    shares for granting loans and advances against
    shares

101
DEMAT ACCOUNT
  • Account opening An investor (investors are
    called Beneficial owners in Depository system)
    intending to hold securities in the electronic
    form in the Depository system will have to open
    an account with a DP of NSDL. The investor has to
    fill up an account opening form and sign an
    Agreement. The investor can open multiple
    accounts with same DP as also with different DPs.
    The DP will provide the investor a statement of
    holdings and transactions. In case the shares are
    held in joint names then the account is to be
    opened in the same order of names. Separate
    account needs to be opened for each combination
    of names

102
Dematerialisation/Rematerialisation
  • Dematerialisation is the process by which an
    investor gets his physical certificates converted
    into electronic form and reflected in his account
    with the DP. One has to just fill in
    Dematerialisation Request Form available with his
    DP. Submit his share certificates along with the
    above form (legend like 'Surrendered for
    Dematerialisation' should be written on the face
    of each certificate before its submission for
    Dematerialisation). The beneficial owner's
    account will be credited with in 15 days and he
    will be informed by the DP. In one whishes to
    convert his electronic shares back to physical
    shares at a later stage, he can still do so by
    applying for rematerialisation through a
    Rematerialisation Request Form available with his
    DP. The new rematerialized certificates with new
    range of certificate number may use existing
    Folio number or a new folio number for the
    certificates.

103
Electronic Trading
  • Trading in the Depository mode takes place in
    the following manner If the investor wants to
    sell his shares, he has to place an order with
    his broker and give a "Delivery Instruction" to
    his DP. The DP will debit his account with the
    number of shares sold by him. If one wants to
    buy shares, he is to inform his broker about his
    Depository Account Number so that the shares
    bought by him are credited into his account.
    Payment for the electronic shares bought or sold
    is to be made in the same way as in the case of
    physical securities. The shares one buys are
    transferred in his name promptly after he makes
    the payment. No formalities of filling transfer
    deeds, affixing stamps and applying to the
    Company for registering the shares in Beneficial
    owner's name are required to be observed, neither
    there is any fear of bad delivery.
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