Bcc_br_106_380.pdf

BCC:BR:106/380

01.09.2014

CIRCULAR TO ALL BRANCHES AND OFFICES IN INDIA Sub File - Adv 2 ISSUED BY RETAIL BANKING DEPARTMENT Dear Sir, Re: Master Circular on ‘Baroda Home Loan’. Please refer to the last master Circular on ‘Baroda Home Loan’ BCC:BR:105/393 dated 06.09.2013. Now, we are attaching the Master Circular on ‘Baroda Home Loan’ with all the updated features of the following products: • • • • • •

Baroda Home Loan to Individuals (Resident Indian). Baroda Home Loan to NRIs/PIOs/OCIs. Baroda Home Improvement Loan. Baroda Additional Assured Advance (AAA). Home Loan to Staff under Public Scheme. Golden Jubilee Rural Housing Finance Scheme (GJRHF).

This Master Circular consolidates all the instructions in respect of “Baroda Home Loan Scheme” issued upto 31.08.2014 by Retail Banking Department, BCC from time to time. We are sure this updated master circular will help the branches to update their awareness of Home Loan Products and facilitate them as a reference material, since they will be able to find complete set of guidelines pertaining to Home Loan products at one place. Yours faithfully

(Usha Khamkar) General Manager (Retail Banking)

Master Circular on

Baroda Home Loan [Updated upto 31.08.2014]

Retail Banking Department Bank of Baroda Baroda Corporate Center Mumbai. Master Circular on Baroda Home Loan

Page 2

INDEX Sr.No.

TOPIC

Page No.

PRODUCTS UNDER BARODA HOME LOAN I

Baroda Home Loan to Individuals (Resident Indian)

6

II

Baroda Home Loan to NRIs/PIOs/OCIs

33

III

Baroda Home Improvement Loan

43

IV

Baroda Additional Assured Advance (AAA)

47

V

Home Loan to Staff under Public Scheme

52

VI

Golden Jubilee Rural Housing Finance

57

PRODUCT FEATURES I 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19 20. 21. 22. 23. 24.

Baroda Home Loan to Individuals (Resident Indian)

6

Purpose Area of operation Eligibility Maximum Amount of Loan Income Criteria Repayment Capacity Loan to Value (LTV) Ratio Margin Repayment Period Rate of Interest Loan application and Preliminary Scrutiny Security Risk Rating Documentation Equated Monthly Instalment Resetting of EMIs/ Extension of Repayment period on revision of interest rate Home Loans at Fixed Rate Option- Application of re-set clause Conversion from ‘Fixed to Floating Rate’ Disbursement of Loan Unified Processing Charges Property Insurance & Personal Accidental Insurance Life Insurance cover to Home Loan Borrowers Prepayment Charges Change of tenure

6 8 8 10 10 12 13 13 14 14 15 16 21 21 21

Master Circular on Baroda Home Loan

22 22 24 25 25 26 26 27 27 Page 3

25. 26. 27. 28. 29. 30.

27 28 28 28 29

31. 32. 33. 34. 35. 36. 37.

Inspection of property – Pre sanction & post sanction Home Loan to Staff under Public Scheme Discretionary lending powers Free Credit Card to Home Loan borrowers Additional Assured Advance facility (AAA) Withdrawal of concession to Group Home Loan proposals & employees of preferred organizations Take over of Home Loan accounts from other Banks/ HFCs Powers of Deviations & charges for deviations Approval of Builder/Developer/Promoter & Projects Implementation of the orders of Delhi High Court Payment of incentive to staff members Payment of service charges to Approved Builders Priority Sector Classification

II 1. 2. 3. 4. 5. 6. 7. 8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19.

Baroda Home Loan to NRIs/PIOs/OCIs Purpose Area of operation Eligibility & Age Minimum Amount Maximum Amount Income Criteria Repayment Capacity Loan to Value (LTV) Ratio Margin Security Rate of Interest Documentation Repayment Period Recovery of interest for the pre-EMI period Change in status of the Borrower Application form Reporting / Classification Execution of Documents & operations through Power of Attorney Other Parameters / features

33 33 33 33 34 34 35 36 36 36 38 38 38 38 39 39 40 40 40 42

III

Baroda Home Improvement Loan – Product Profile

43

IV

Baroda Additional Assured Advance (AAA) – Product Profile

47

V

Home Loan to Staff under Public Scheme –Product Profile

52

VI

Golden Jubilee Rural Housing Finance (GJRHF) – Product Profile

57

VII

Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS).

58

Master Circular on Baroda Home Loan

29 29 30 31 31 32 32 32

Page 4

ANNEXURES 1. 2. 3. 4. 5. 6. 7.

8. 9. 10. 11. 12. 13. 14. 15. 16. 17. 18. 19. 20. 21. 22. 23. 24. 26. 27. 28.

Group Credit Life Insurance for Home Loan Borrowers Personal Accident Insurance & Property Insurance (Revised Schemes) Baroda Home Loan Suraksha Bima Yojna KYC Norms & Preventive Vigilance Rating Model Online Home Loan Application Approval of Builders and their Housing Projects (a) Approval of builders and their housing projects where our Bank granting credit facilities (b) Parameters for approval of builders and their projects (c) Information to be obtained from builders for approval of projects (d) Powers to approve deviation to accept ‘unregistered agreement to sell’ in approved/unaproved housing projects (e) Upfront disbursal of Housing Loans – RBI guidelines (f) Disbursement of Home Loans on the basis of ‘agreement to sell’. Issuance of Free Credit Card to Home Loan Borrowers Powers for Deviations & Deviation charges Documents to be obtained from Customers List of Close Relatives- Home Loan to NRI Finacle vis-a-vis Ascrom Codes Selling Points on Home Loans Payment of Incentive to staff members Payment of Service Charges to Builders Implementation of orders of Delhi High Court Application Form- Home Loan to Individuals (Resident Indian) Application Form – Home Loan to NRIs/PIOs/OCIs Pre sanction Inspection Report Post Sanction Inspection Report Format of letter to Advocate for legal opinion Format for Power of Attorney Format of Letter to be obtained from principal for execution of POA Format of Special POA to receive mortgage documents in case of take over loans Format- Details of payment of incentive to staff for Home Loans Format- Details of payment of incentive to Builders CRGS scheme – Format for Claims

Master Circular on Baroda Home Loan

64 74 86 90 97 100 102 105 106 107 109 111 113 114 116 120 124 124 125 126 128 130 132 138 142 144 145 148 151 152 153 154 155

Page 5

BARODA HOME LOAN TO INDIVIDUALS (Resident Indian) 1. Purpose: i.

For construction of new dwelling unit and purchasing of new residential house/ flat.

ii. For purchase of old dwelling unit (not more than -25- years old). •

For dwelling units which are older than 20 years but not more than 25 years, branch to ascertain structural soundness of the building by obtaining an approved engineer’s certificate, certifying the structural soundness as well as residual life of the building which should be atleast 5 years more than the repayment period.

•

For dwelling units which are older than 25 years, Regional Head may authorize such cases on selective basis, subject to, ascertaining structural soundness of the building by obtaining an approved engineer’s certificate, certifying the structural soundness as well as residual life of the building which should be atleast five years more than the repayment period of the loan.

iii. For purchase of plot of land, subject to the condition that a house will be constructed thereon within -3- years or upto the period allowed by Development authority, whichever is earlier, from the date of purchase of plot, without resorting to penal interest. There is no exclusive scheme for purchase of plot under Home Loan product and provision of plot is a part of home loan project. As such, only a reasonable part of the total home loan eligibility should be sanctioned/ disbursed for purchase of plot, keeping margin for construction of house over the plot. When the loan is considered for purchase of a plot to construct the house, the Branch should obtain a suitable undertaking from the borrower to this effect. Since the compliance of the undertaking rests with the borrower, Branches are required to incorporate suitable covenants in the loan documents at the time of sanction, to enable them to recall the loan and/or charge higher rate of interest, ab initio, in the event of non-compliance by the borrower with his undertaking. In this background, for the benefit of the branches, we would like to clarify the issue as under: In case the borrower fails to construct the house within a period of three years from the availment of the said finance: i. Branch to charge commercial rate of interest (Base Rate plus maximum band declared by the Bank) from the date of first disbursement. ii. Branch to recall the loan and recover total loan with revised interest.

Master Circular on Baroda Home Loan

Page 6

iv. For repayment of the loan already availed from any other Bank / Housing Finance Company and/or other sources, provided documentary evidences are produced. v. For extension of the existing house to:
Our existing Home Loan borrowers
New borrowers
Borrowers who have availed Home Loans from other bank / HFC. vi. For reimbursement of expenses incurred for houses / flats constructed / purchased recently from own sources to good clients selectively, subject to following additional conditions: a. Such Loans are to be considered only to applicants who secure HL-1, HL-2 or HL-3 risk ratings under Home Loan Rating model. a House/flat should have been constructed / purchased recently (not prior to 24 months) b Margin: Salaried - if monthly salary is upto Rs. 20000/- : 25% salary is above Rs. 20000/- : 20% Others : 20% c Valuation Report to be obtained from approved valuer of the Bank. d Branch to satisfy that there are no institutional / external borrowings against the house and the amount already spent on the house has come from own sources of the customers. e Branch to verify and keep on record relevant money receipts, bills, documentary proof of payment/expenditure etc. f Creation of equitable mortgage after obtaining title clearance report from Bank’s Advocate. g Reimbursement of cost of plot is not admissible under the scheme. vii.In the case of individuals who have taken loan for construction / acquisition of house/flat from other bank/HFC and need supplementary finance, loan may be considered to high class borrowers (HL-1 and HL-2 risk rating) after obtaining pari passu or second charge over the property mortgaged in favour of other Bank/HFC and / or against such other security as deemed appropriate. viii.

Branches/RLFs should not consider/sanction Home Loan proposals to builders where disbursements are not linked to various stages of construction of housing project in terms of Circular No.BCC:BR:105/392 dt 05.09.2013. (Details given in Annexure-7 (B)

ix. If the car parking place is located in the same building/society/compound, the cost of car parking place or area can be considered in the cost of house/flat. However, it is to be noted that the car parking area should be identifiable, specific and be clearly mentioned in the sale agreement/allotment letter. x.

The one time premium amount for Life Insurance Cover to Home Loan Borrowers under Group Credit Life Insurance Scheme can be financed as part of Loan at the request of the borrower, at the time of sanction. Premium amount can be part of

Master Circular on Baroda Home Loan

Page 7

the loan as per total eligibility of the borrower keeping the margin and LTV Ratio as mentioned above on cost of project excluding other charges like stamp duty, registration charges and other expenses like life insurance premium etc. Please note that Insurance premium should not be included on cost of project for calculating margin & LTV Ratio. (Detail of the scheme of Group Credit Life Insurance is attached as (Annexure-1) xi. Property under litigation and in poor condition should not be considered for financing. 2. Area of operation: In terms of the revised guidelines, all the branches including at Metro & Urban centers are permitted to consider Home Loan proposals. However, it is clarified that the branch in metro and urban areas may consider Home Loan near to the:





Location of new flat/house to be purchased/constructed or Place of work/business of the applicant or Place of present residence of the applicant or Branch maintaining salary account of the applicant


Semi-urban and rural branches may finance in their area of operation. Please note that wherever, Retail Loan Factories (RLFs) are established, branches covered under the RLF shall not consider home loans unless and otherwise authorized by the concerned Regional Head. Any deviation from the above may be considered with prior approval of Regional Authority. 3. Eligibility: i.

All individuals singly or jointly.

ii.

Principal applicant must be employed minimum for last three years.

iii.

Age: • Minimum age: Minimum age of the applicant must be 21 years. However, the minimum age of co-borrower can be 18 years.

•

Maximum age: Salaried Persons:

a) Maximum age is 70 years. i.e., the age by which the Loan should be fully repaid, subject to availability of sufficient regular and continuous source of income for servicing the loan repayment, provided: Master Circular on Baroda Home Loan

Page 8

(i) Son/ Daughter/ Spouse who is a legal heir and preferably below 50 years of age, with sufficient income for servicing the loan repayment joins as Co-Borrower/Guarantor. (OR) (ii) If borrower pledges FDRs / NSCs / Govt. Security etc. of adequate value to ensure continuity of income for repayment of loan installment with interest if sanctioning authority is satisfied about the same.

b) Other wise i.e, if not fulfilling the above criteria (i) or (ii), age of the borrower plus repayment period should not be beyond retirement age.

c) Maximum age can be considered upto 70 years, also in case of salaried persons drawing pension, subject to the condition that 40% of the pension is sufficient to pay EMI. In case EMI exceeds 40% of the pension, the borrower to deposit adequate amount in the loan account so as to reduce the outstanding amount of loan to the extent it can be serviced by 40% of the pension. Others (Non-salaried/self-employed/professionals/agriculturists etc.): a) Maximum age is 70 years. i.e., the age by which the Loan should be fully repaid, subject to availability of sufficient regular and continuous source of income for servicing the loan repayment, provided: (i) Son/ Daughter/ Spouse who is a legal heir and preferably below 50 years of age, with sufficient income for servicing the loan repayment joins as Co-Borrower/Guarantor. (OR) (ii) if borrower pledges FDRs / NSCs / Govt. Security etc. of adequate value to ensure continuity of income for repayment of loan installment with interest if sanctioning authority is satisfied about the same. (b) Other wise i.e, if not fulfilling the above criteria (i) or (ii), age of the borrower plus repayment period should not exceed 65 years. iv.

Person who already owns a house can also be considered for construction/ buying a second house / flat in the same village / town / city or other village / town for the purpose of self-occupation.

v.

Normally Home Loan is to be considered only for purchase / construction of one house / flat. However, looking to the size of the family, income eligibility and repayment capacity of the applicant, Home Loan can be considered for purchase of two flats/two houses also, provided both the flats/houses are adjacent or in the same place (city/town/village) and acquired for self occupation.

Master Circular on Baroda Home Loan

Page 9

vi.

Home Loan to third dwelling units onwards: As per RBI guidelines Bank’s exposure to third dwelling unit onwards to an individual will be treated as CRE (Commercial Real Estate) exposure. As such, Home Loan for third dwellong units onwards to an individual is not to be considered under regular Home Loan scheme of Retail credit

vii. Person who has been provided accommodation by his / her employer is also eligible for loan, even though he / she is not in a position to occupy it in the near future and proposes to let out on rental basis. viii. Home Loan to HUF is not to be considered as it is not meant for the purpose of family business of HUF and also there are certain legal complications. 4. Maximum Amount of Loan i.

Rs. 300/- Lacs for Urban & Metro branches

ii. Rs. 100/- Lacs for Rural & Semi-Urban branches iii. For extension: Rs. 10/- Lacs. iv. Total amount of the loan sanctioned including that for extension should not exceed Rs. 300/- Lacs for Urban & Metro branches and Rs.100/- Lacs for Rural & Semi-Urban branches. v. The actual quantum of loan should be arrived at after considering the income criteria, repaying capacity & LTV/Margin norms as laid down under point no. 5, 6, 7 & below. vi. All the sanctioning authorities at branch level as well as Regional and Zonal Offices shall consider the Home Loan proposals upto their DLPs and if the proposal falls beyond their DLP, same shall be submitted to next higher authority for their consideration as hitherto. 5. Income Criteria: The maximum amount of loan should not exceed the following: (i) In case of salaried persons: Monthly Income Up to Rs.20,000/More than Rs. 20,000/& up to Rs.1 Lac More than Rs. 1 lac Master Circular on Baroda Home Loan

Eligibile amount of loan -36- times of monthly gross income -48- times of monthly gross income -54- times of monthly gross income Page 10

(ii) In case of others viz. professionals / self-employed / business persons etc., -5- times of average annual income (last three years). Depreciation to be considered for computing eligibility subject to the following conditions: • •

•

•

The facility will be confined to Businessmen, Professionals, Self-Employed, Individuals etc who run the business/activity on proprietorship basis. Sanctioning Authority will ensure verification of fixed assets, over which, the depreciation is claimed by the borrower during pre sanction inspection and a copy of report to be kept on record. Depreciation amount will be ascertained on the basis of last -3- years “Audited Balance Sheet” of Business activity and the latest Audited Balance Sheet should not be older than -9- months. Depreciation that is allowed to be added to the net income, will be average depreciation during the last -3- years or the depreciation during the current year, whichever is Lower.

i.

Wherever income of the family members is clubbed, they should be made coborrowers.

ii.

Considering the average life expectancy of about 65 years, the pension income is not to be included in the income for calculating the eligible loan amount.

iii.

In Retail Loans, income & repaying capacity are the main criteria for considering loans. Therefore, critical examination and satisfaction about the employment status of the applicant, his/ her/ their source should be regular, stable, sustainable and of verifiable nature.

iv.

Income from salary/ business/ profession should be in accordance with nature / area of business, qualification, age, cadre in the organization etc.. If possible verify the credit card statement to ascertain the repayment habit and default, if any.

v.

In case the applicant is not maintaining SB account with us, branch should obtain statement of principal account of the applicant, wherein salary/ business income is being credited and the same be analyzed properly to ascertain the conduct of account and also to judge applicant’s other liabilities, repaying capacity. Net Salary credited in a/c may be cross checked through bank account statement. Independent enquiries from the employer in respect of salaried person about employment status and salary should be made. It will help in detection of cases of fabricated salary / employment certificates as well as in ascertaining the actual income of the applicant. A copy of latest salary slip alongwith Form No. 16 (cross verification of salary account with last 3 salary slips will help the branch to ascertain the genuineness of the income properly) should be obtained, duly verified with name and designation of the employer.

vi.

Master Circular on Baroda Home Loan

Page 11

vii.

viii.

ix.

In case of applicants other than salaried persons, the original tax payer’s copy of challans of tax deposited be verified to ascertain genuineness of Income Tax Returns. Home Loan proposals of the persons, who have filed their income tax returns of last three years in one lot or if there is major fluctuation in the amount of the tax deposited in the current year vis-a-vis previous year should be accorded special attention. In case of Agriculturists who are predominantly dependent on agriculture and not required to file income tax returns, their income may be assessed by obtaining income certificate from the local competent revenue authority only. The income mentioned in the certificate must be assessed properly taking in to consideration land holding of the Agriculturist, area of land actually being cultivated by him, cropping pattern and acreage under different crops together with number of crops harvested in a year depending on availability of irrigation facility etc. The assessment of income so arrived must be properly recorded with justification in the appraisal note. If the income of co borrower/s is accepted for the purpose of addition of their income to the income of principal borrower for arriving higher eligible limit, sustainability of income of co-borrower/s has also to be ensured and assessed in the same line of salaried/non-salaried/agriculturist etc as the case may be.

6. Repaying Capacity: i. In case of salaried persons: Monthly Income Up to Rs. 20,000/More than Rs. 20000/- and up to Rs. 50000/Above Rs.50000/-

Total Deductions not to exceed (including proposed EMI) 40% 50% 60%

ii. In case of others: Annual Income Up to Rs. 2,40,000/Above Rs. 2,40,000/- & upto Rs. 12 Lacs Above Rs. 12 Lacs

Total Deductions not to exceed (including proposed EMI) 50% 60% 70%

However, higher repayment capacity may be considered by the Regional Authority (in terms of circular No.BCC:BR:106/22 dated 21.01.2014) by taking into account age, income, qualification, number of dependents, assets, liabilities stability/continuity of employment/ business of the applicant and the co-applicant’s income. A note justifying higher repayment capacity exceeding the above mentioned criteria, be suitably incorporated in the appraisal note. Repayment capacity to be calculated taking into consideration the deduction of income tax, other statutory deductions etc. besides all reimbursements and other Loans EMI payment, excluding Life Insurance Premiums. Payment of all type of Life Insurance Premiums (except premiums of Unit Linked Insurance Plan - ULIP) Master Circular on Baroda Home Loan

Page 12

irrespective of Insurance Company issuing the policy, need not be considered for deduction. 7. Loan to Value (LTV) Ratio: In view of the revised RBI guidelines, Bank has modified the Loan to Value (LTV) Ratio w.e.f. 15.09.2013 as under: Category

LTV Ratio (%)

Home Loans upto Rs. 20 Lacs Above Rs. 20 Lacs upto Rs. 75 Lacs Above Rs. 75 Lacs

: 90 % : 80% : 75%

Branches should not include stamp duty, registration charges, other documentation charges and other expenses like Life Insurance premium etc. in the cost of house property to calculate Loan to Value (LTV) Ratio w.e.f. 15.09.2013. 8. Margin Norms: In view of the revised RBI guidelines, Bank has modified the margin norms w.e.f. 15.09.2013 as under: Loan Amount Loans upto Rs.20/- Lacs Loans above Rs.20/- Lacs upto Rs.75/- Lacs Loans above Rs.75/- Lacs

Margin 10% 20% 25%

Branches should not include stamp duty, registration charges, other documentation charges and other expenses like Life Insurance premium etc. in the cost of house property to calculate margin. You may observe that the margin norms for Loan upto Rs.20/- Lacs has been reduced to 10%. However, for Loans above Rs.75/- Lacs margin of 25% is to be stipulated in fresh sanctions. For existing Home Loans above Rs.75/- Lacs in case the margin is currently less than the ceiling prescribed for any reasons, efforts should be made to bring to it within limits.  The one time premium amount for Life Insurance Cover to Home Loan Borrowers under Group Credit Life Insurance Scheme can be financed as part of Loan at the request of the borrower, at the time of sanction. Premium amount can be part of the loan as per total eligibility of the borrower keeping the margin and LTV Ratio as mentioned above on cost of project excluding other charges like stamp duty, registration charges and other expenses like life insurance premium etc. Please note that Insurance premium should not be included on cost of project for calculating margin & LTV Ratio. Master Circular on Baroda Home Loan

Page 13

 While taking over Home Loans from other Banks/HFCs, branches should ensure that a minimum margin and LTV Ratio as stipulated above on the value of house property is available.  Advance deposited with the builder is to be treated as margin only after its genuineness is checked & verified to the satisfaction of the sanctioning authority. 9. Repayment Period: i.

Maximum repayment period is -30- years, including moratorium period.

ii. Maximum moratorium shall be -36- months as under: -18- months moratorium period for under construction Houses and Building upto 7th floor, thereafter -6- months additional moratorium per floor subject to maximum of -36- months. Or One month after completion of house/ taking possession of flat/house, whichever is earlier. iii. Loan to be repaid in Equated Monthly Installments (EMI) except in case of farmers where the loan is proposed to be repaid in half yearly installments coinciding with harvesting/marketing of major crops produced. 10. Rate of Interest: Base Rate – for any amount and tenure (w.e.f. 01.06.2013 for fresh and existing accounts) (i) Fixed Interest Rate Option: Fixed Interest Rate option stands withdrawn w.e.f. 01.07.2010 and no loan shall be granted at fixed rate option. However, Loans sanctioned prior to 01.07.2010 under fixed rate option shall continue till their reset period/maturity whichever is earlier. (ii) Floating Interest Rate Option: Floating interest rates are linked with Base Rate and will undergo change as and when Bank will revise Base Rate.
An option of Flexi interest rate providing therein part of the loan under fixed and part of the loan under floating rate option, conveyed through circular no. BCC:BR:99:97 dated 30.03.2007 stands withdrawn and will not be available henceforth, (existing accounts will be continued as earlier). Master Circular on Baroda Home Loan

Page 14


“Minimum Interest Clause” has been waived on all fresh sanctions as well as on all existing loans with a view to pass on the benefit of down movement of Base Rate to the borrowers.
All existing Home Loan borrowers who maintain a good track record of repayment are eligible for a concession of 25bps in interest rate on prevailing card rate on Car Loans (including Car Loan to HNIs) w.e.f. 08.06.2010. This concession is in addition to the concession of 50bps being offered to the Car Loan borrowers who offer liquid securities of a minimum of 50% of the loan limit as prescribed in the product profile of Car Loan, subjected to the condition that effective applicable rate should not go below Base Rate. However since, at present the applicable rate of interest on Car Loans is Base Rate +0.25%, maximum concession is restricted to 0.25% only.
All Home Loan borrowers are eligible for 0.50% concession in rate interest for purchase of consumer durables under Baroda Personal Loan. 11. Submission of Home Loan application and preliminary scrutiny: Submission of Home Loan application may be either through online or by physical mode. (i) Application through online mode: In case the application is submitted online, Branches/RLFs/Regions are requested to follow the guidelines as per Annexure- 6. (ii)Application by physical mode: a. On receipt of the application form the same should be scrutinized to ensure that application has been completely filled in and all the necessary relevant papers particularly pertaining to identity of the applicant, residence, employment / business and property to be purchased/ constructed has been enclosed to the application form. b. If there is more than one branch at the center, the branch should ensure before considering the loan application, that the applicant is not enjoying any loan from any other branch at the center with the help of ASCROM data. c. CIBIL / EQUIFAX data interface is to be utilised for information about other bank borrowings of the applicants. d. The details of applicant about his/her employment, business and residence, furnished in the application should be cross checked telephonically by making call to his/her residence/business establishment/employer. e. Proper verification of the documents submitted by the applicant and establishing correct identity of the applicant beyond doubt are the two key important issues which if done carefully and smartly can protect the Bank’s interest. f. Documents submitted for identity and proof of residence i.e. copy of Ration Card/ photo-identity card/Aadhar Card/ PAN card/ driving license should be properly scrutinized and also verified from originals. Along with the documents for Master Circular on Baroda Home Loan

Page 15

identity, income, residence, property must be verified from originals to confirm genuineness of the documents submitted and a noting to this effect should be made on photocopies of the documents and kept on record. g. The interview should usually cover: • Cross checking of details furnished in the application form. • Details of his/her employment, business, his/her existing residence and the present bank. • Location of the property, builder's details and details of flat/ house proposed for purchase. • If the location of the property, business place of the borrower, residence and the branch where he/she has applied for the loan are at far off places from each other, this should be inquired into. • At the time of borrower’s interview other interested parties like Builder etc. should not accompany the applicant. h. The information collected during verification and interview should be noted and the same should be re-checked by an officer of the branch to ensure that requisite information has been furnished in respect of all the parameters stipulated. i. Proposals for financing a house / flat developed by the builders not having good reputation in the local market / whose names are appearing in the negative list should not be considered. j. Involvement of middlemen is highly irregular and should be avoided at all costs. k. Details of assets and liabilities mentioned by the applicant should be verified from the relevant documents. l. Based on the scrutiny of the loan application, relevant documents & Presanction inspection, the branch / RLF will take a decision to go ahead for verification of title deed, obtaining legal opinion from the empanelled Advocate. The report of the advocate should be exhaustive and complete containing all vital points as mentioned in the model draft letter to be addressed to the Advocate should be obtained. The report received from the Advocate should be carefully studied by the branch officials. m. Legal opinion of the document should be based on examination of original title deed only and not on the basis of the photocopies. n. In order to ensure that panel advocate incorporates all vital points in his report relating to the property offered as security such as non-encumbrance, marketability and title of the property, the branches are advised to send letters to Advocates as per model draft (Annexure -21) while seeking his / her opinion. o. Reports which do not contain the information on the points mentioned in the branch letter (as per draft) must not be accepted. 12. Security: i.

Mortgage of the property constructed / purchased.

ii.

If mortgage is not feasible, branch can accept, at its discretion, security of adequate value in the form of life insurance policies, Government Promissory

Master Circular on Baroda Home Loan

Page 16

Notes, shares and debentures, gold ornaments or such other security as may be deemed adequate including third party guarantee from individual/s with the prior permission of Regional Head. iii.

Even if it is possible to create equitable mortgage but customer desires that the equitable mortgage need not be insisted upon, in such case branch may as a special case, accept at its discretion, security of adequate value in the form of life insurance policies, Government Promissory Notes, shares and debentures, gold ornaments or such other security as may be deemed adequate with the prior permission of Regional Head, along with stamped undertaking that the borrower shall not create any charge on the said property to any third party and that he will create mortgage of the dwelling units / housing property at a later date if desired by the bank, be obtained from borrower. Margin on above securities is to be maintained as per extant guidelines applicable for financing against those securities.

iv.

In cases where procedure for execution of sale deed / conveyance deed , forming a co-operative society and issuance of share certificate takes a very long time and as such there are practical difficulties in creating equitable mortgage at the time of sanction of Home Loan for flats developed by builders / developers following procedure may be adopted: Create equitable mortgage by obtaining following documents duly supported with the advocate’s search report and opinion on title of the land as also on the agreement to sale.
Original Agreement to sale executed by builder in favour of borrower, duly stamped and registered.
Index – II Property Card
Original Receipt in respect of registration of “Agreement to sell”.
Copy of the map of the building duly approved by the appropriate authority.
NOC from builder for creating mortgage and noting of Bank’s lien if the building is under construction.
Share Certificate, if society is formed, duly supported with NOC from the society for creation of mortgage and noting of our lien in society’s record.
Possession letter in original. As regard stamp duty, the same is to be paid as applicable on Memorandum of Deposit of Title Deed. Branches, however, should note to obtain the copy of sale deed executed by the builder in favour of co-op society and also to obtain share certificates issued by society as and when formed during pendency of the loan.

In order to prevent fraud in Home Loan by submitting forged documents/ connivance of builders / noting of lien by builder, branches are required to follow steps mentioned hereunder: Master Circular on Baroda Home Loan

Page 17

•

The genuineness of transaction and the documents supporting the transaction must be verified by proper inquiries.

•

The Bank officials should physically verify from the builder, by visit to the regular office of the builder and not merely by visiting temporary site office of builder at the building, whether, the builder has executed the Agreement for Sale of flat/ property with Borrower or physically verify the existence of a builder and / or obtain a letter from him of his intention to execute the document on receipt of initial installment / margin amount required to be paid for by Borrower.

•

Wherever builders / promoters are required, as per local law, to obtain compulsory registration of their activities as Builders / Promoters, as in the State of West Bengal, the branches must verify and ensure that the flats constructed are by registered Promoters / Builders. Further, the completion certificate of the Building and occupation certificate issued by Municipal Authorities in respect of the building in which flat / premises are situated should invariably be scrutinized by Advocate and clearance of such formality should be included in their report on title.

•

In the same manner, the Bank officials should enquire from the builder about the receipt of the payment made to him and modality for payment of balance amounts of loan / instalments to be disbursed by Bank, as per request made by borrower directly to builder together with approval of the builder to record Bank’s charge on the Flat on execution of loan documents by Borrower.

•

Standing of the builder in the market should also be ascertained by the branch by making enquiry about his reputation and past record.

•

After execution of loan documents complied with memorandum of deposit of title deeds, Bank should ensure to get noted its charge on the flat/ property, should be registered immediately with the office of the Sub- Registrar of Assurances under the optional registration, and the Bank official should ensure that the office of the Registrar of Assurances has issued index – II in favour of the Borrower registering the documents. Similarly, for recovery of dues civil suit should also be filed relying on loan documents including enforcement of its mortgage, without allowing loan documents to get time barred, irrespective of FIR having been filed.

•

The stamp paper/ stamp must be purchased from the Stamp Office or from Government approved authorized vendors / agencies.

Safeguards to be observed for accepting the property as security: i)

The search report from an empanelled Advocate should elaborately deal with scrutiny of records in respect of the property on which the flats / houses are constructed from the office of Sub-Registrar of Assurance and from the Records of Civil Court in the Metropolitan Cities of Mumbai, Delhi, Kolkata and Chennai, showing dispute pending in any of such courts is a prerequisite for consideration of

Master Circular on Baroda Home Loan

Page 18

Home Loan. Mere report on the strength of copies of documents obtained from Builder / intending seller cannot suffice. Further report on title should narrate the history of title brought down to the builder’s right to own or develop the property should be clearly narrated and for this purpose cost of searches and expenses as also the legal fees should be commensurately fixed in advance and authorization from the intending borrowers to pay the same should be obtained. ii)

Before registration of the duly embossed and duly stamped documents / agreements with Registrar of Assurances, a search should be taken in the pending registry records to verify whether the same flats have already been mortgaged / encumbered.

iii)

While accepting properties for mortgage, it should be done only after taking physical search in sub registrar's office and land records concerned and all documents are required to be entered before Registrar of Assurances (ROA).

iv)

Builder’s undertaking should invariably be obtained to the intent and effect that the flats/ houses intended to be sold to the intending purchaser are not agreed to be sold to any other person and he is agreeable to the bank’s lien being noted in his records and books in respect of the flats / houses restraining the intending purchaser to sell mortgage or transfer in favour of any other person without the consent of the bank.

v)

An affidavit should be obtained from the mortgagor that the property to be equitably mortgaged is free from encumbrances of any sort and that no suit is pending and that there is no attachment of any type of the said property.

vi)

Original title deeds should be deposited with the bank. It should be carefully noted that the copies of title deeds or extract of revenue records/property card do not constitute the title deeds nor an agreement for sale or a municipal order directing handing over the land and title deeds for the purpose of creation of valid equitable mortgage.

vii)

Where equitable mortgage of property has been stipulated as security for any facility, the facility should not be released against an undertaking to create equitable mortgage of the property, without the prior written permission from the sanctioning authority.

viii)

In case of leasehold property, prior written consent of the lessor for creation of mortgage should be obtained. The lease period should be not less than 30 years. However, unexpired period of lease should be equal or more than the repayment schedule of the proposed loan.

ix)

Please ensure that in the following cases, Deed of Conveyance has been executed and registered.

Master Circular on Baroda Home Loan

Page 19

o Where the property relates to Cooperative society registered under Gujarat cooperative society Act, 1961; sale by such society in favour of its member, even where member is first allottee or in resale by members inter se. o Where the property is allotted by Gujarat Housing Board or Gujarat Rural Housing Board. x)

Where the property to be mortgaged is a vacant land or "excess land" within the meaning of Urban Land Ceiling & Regulation Act, permission of competent authority should be obtained for creation of equitable mortgage, if the Act is still in force in the State where the property is situated.

xi)

In case of properties situated in any of the Union Territories of India, especially at Daman, the permission of Collector/Administration is required to be obtained for creation of equitable mortgage as these properties are owned by the Government and only occupancy rights are assigned to its holder.

xii)

It must be ensured that no Income-tax / house tax / water tax etc. dues are pending against the vendor and a certificate to this effect may be obtained from the competent authority alternatively evidences to verify the above facts may be obtained and kept on record.

xiii)

In case, the property belongs to partnership firm/joint owners, authority of all partners/joint-owners must be obtained for creation of mortgage.

xiv)

While creating equitable mortgage by deposit of title deeds, a photograph of the borrower/his representative who is authorized to deposit the title deeds, duly signed by him across the photograph may be obtained.

xv)

Signature of the person depositing title deeds should be obtained in the register maintained by the branch for the purpose. (Not on Mortgage Memorandum).

xvi)

After the mortgage is created or extended, a letter of confirmation in the form of LDOC-90 (R) may be obtained from the depositor/owner.

xvii) Wherever Mortgage Security is created by a person on the strength of Power of Attorney (POA) before creation of Mortgage the POA should be got scrutinized by the Bank's Advocate/Legal Department to ensure that the requisite powers are contained therein. xviii) Details of the property are to be entered in Finacle through menu option – CERSAI. xix)

Besides, valuation report submitted by Govt. /Approved valuer in respect of immovable property, the Sanctioning Authority should assess the value of the property independently to detect any over valuation of the property to avail excess finance or to avoid applicant’s contribution towards margin. Integrity and market reputation of the valuer should be of high order.

Master Circular on Baroda Home Loan

Page 20

xx)

If the builder is a private limited or a public limited company, report from the office of Registrar of Companies should obtained for ensuring that the entire property (in which flat proposed to be financed) is not charged in favour of any bank / financial institution / other creditor for finance availed by the company.

13. Risk Rating : All Home Loan applications are subject to Risk rating. Credit rating to be done as per Home Loan Model under Retail Rating Models. Total marks are 168 and the cutoff is set at 96 (Investment Grade HL-8). The details of the various ‘Rating Parameters and risk rating model’ are given in Annexure– 5. 14. Documentation: Following documents are to be obtained: i. Term loan agreement – LDOC – 23A (Format as per Book of Instruction) ii. General form of Guarantee (LDOC 33) wherever third party guarantee is stipulated. iii. Usual procedure for creation of equitable mortgage of the immovable property being financed. iv. Documents required to be obtained for recovery as per State Recovery Act. (Declaration cum undertaking cum authority need not to be obtained) 15. Equated Monthly Instalment (EMI) Plan: i.

The recovery under EMI provides for repayment of dues uniformly through out the loan period. The following accounting procedure may be followed in this regard: a. At the time of granting loan, EMI should be calculated as per chart circulated vide circular No.CO/BR/94/149 dated 24.06.2002 or may be calculated from Bank’s website and advised to borrower. b. EMI amount can be calculated through the menu option ‘LAMOD’ in Finacle. c. The EMI amount should be in figures rounded off to next higher rupee.

ii. Accounting & interest application: a. The monthly recovery under EMI shall be credited in full to the loan account. b. At the time of monthly interest application, interest is to be calculated on daily products basis and debited to the loan account. In effect, this would result in application of interest on daily product basis at monthly rests. iii. Change in interest rates (Under floating Rate Option): a. As our interest rates on Home Loans are linked to Base Rate the ultimate rate would, therefore, undergo change as and when Bank revise Base Rate. iv. Recovery of interest for the pre-EMI period: a. Interest charged during the pre-EMI period is to be recovered as and when debited, before commencement of recovery by EMI. Master Circular on Baroda Home Loan

Page 21

b.

For any reason, if the borrower is not in a position to repay the interest as and when charged in one lump sum, the same may be recovered within 2 months, by charging overdue interest as and where applicable, as per rules / extant guidelines.

v. Issuance of interest certificate: For the purpose of income tax, branches may issue certificate to the borrower for interest debited during the year to the Home Loan account, being interest actually accrued on loan account. Existing income tax rules are also to be complied with in this regard. 16. Resetting of EMIs / Extension of Repayment Period on revision of Interest rate. i. Change in rate of interest will be effected centrally by our data centre without re-setting EMIs. Period of loan will be adjusted as per increase/decrease in rate of interest, keeping EMIs at fixed level till full repayment subjected to the condition that total/extended tenure of Home Loan does not go beyond the maximum period permissible under Home Loans as per guidelines. ii. However, in case any borrower approaches his Branch for change in EMI as per revised rate of interest, branches are required to make changes at their end in such accounts. iii. The Insurance cover available under Bancassurance i.e, Home Loan Suraksha Beema Yojna and under Life Insurance cover obtained from any of the insurance provider shall remain in force only upto original tenure of loan and not for the extended period, if any. 17. Home Loans at Fixed Rate Option- Application of re-set clause. Prior to introduction of Base Rate System, Home Loans were available at Fixed Interest Rate Option as well as Floating Interest Rate options. Bank has introduced Base Rate system w.e.f. 01.07.2010 in place of Benchmark Prime Lending Rate (BPLR) system. As per the guidelines of Base Rate structure, conveyed vide Circular No. BCC:BR: 102/178 dated 30.06.2010: “ • All the existing Loans/facilities based on BPLR system may run with the existing interest rate structure till their maturity/review. • Fixed interest rate option on all the Retail Loan products stands withdrawn with immediate effect from 01.07.2010 and henceforth no loan shall be granted at fixed rate option. However, existing facilities under fixed rate option shall continue till their reset clause/ maturity whichever is earlier.”


For Home Loans sanctioned upto 15.08.2007 at Fixed Interest Rate option the rate prevailing on the date of sanction remains applicable through entire tenure of such loans.

Master Circular on Baroda Home Loan

Page 22
















Home Loans sanctioned at Fixed Interest Rate option on or after 16.08.2007 and till 16.11.2008 are subjected to re-setting of interest after completion of every -5- years from date of first disbursement. Home Loans sanctioned at Fixed Interest Rate option on or after 17.11.2008 and till 30.06.2010 are subjected to re-setting of interest after completion of every -3- years from date of first disbursement. Fixed Interest Rate option stands withdrawn w.e.f. 01.07.2010 and no loan shall be granted at fixed rate option from 01.07.2010. However, Loans sanctioned prior to 01.07.2010 under fixed rate option shall continue till their reset clause/maturity whichever is earlier. However, for Home Loans sanctioned under Special Home Loan Package (LA127) effective from 16.12.2008 to 31.12.2009 under fixed rate option, fixed rate of interest will continue upto the reset period of 5 years. The revised rate on resetting will be determined in such a way that spread over/below BPLR remains the same on the date of reset if compared with that on date of original sanction.

Since Home Loans sanctioned under Fixed Interest Rate option with reset period, the reset period falls due only after 01.07.2010 in all the cases, the revised rate on resetting will be determined in such a way that BPLR as on resetting date +/- spread as per original sanction will be the effective rate of interest from date of reset and requires to be linked to Base Rate from date of reset. (Please note that Home Loan Accounts where interest flag has been pegged as 'Y' in Finacle indicates that the account is in fixed rate of interest) Further, in terms of Circular No.BCC:BR:105/219 dated 01.06.2013, the applicable rate of interest w.e.f. 01.06.2013 in all the existing Home Loan accounts under floating rate should be Base Rate. In view of the above guidelines, to avoid irregularities in the applicable rate of interest in existing Home Loans, different cases of Home Loans under fixed rate options are given as under: Case-1: Home Loan accounts sanctioned under fixed rate option from 16.08.2007 – 16.11.2008 - As per guidelines resetting of ROI is required after 5 years of sanction. The revised rate (which is to be linked with Base Rate) will be determined in such a way so that the spread over/below BPLR (prevailing on the date of reset) remains the same on date of reset if compared with that on the date of original sanction. Further, applicable rate of interest w.e.f. 01.06.2013 to be Base Rate. Eg: Home Loan sanctioned under fixed rate option on 16.08.2007 at 12.25% (i.e fixed at 1.00% below BPLR, BPLR being 13.25% as on 16.08.2007) Say Bank’s BPLR changes to 14.75% as on date of reset (16.08.2012), then as per reset clause, the rate of interest in the Home Loan account would be recomputed and Master Circular on Baroda Home Loan

Page 23

revised so that the original negative spread over BPLR remains unchanged as on date of reset (16.08.2012). Accordingly, new rate would be Bank’s BPLR minus 1.00% I.e, 13.75% (14.75%-1) from date of resetting. Say Base rate on the date of reset (16.08.2012) is 10.50%. Hence, the effective rate to be given in finacle would be Base Rate + 3.25% under floating rate option (i.e, with interest pegging flag option ‘N’). Further, applicable rate of interest w.e.f. 01.06.2013 is to be made Base Rate i.e, @10.25% at present. Case-2: Home Loan accounts sanctioned under fixed rate option from 17.11.2008– 30.06.2010 - As per guidelines resetting of ROI is required after 3 years of sanction. The revised rate (which is to be linked with Base Rate) will be determined in such a way so that the spread over/below BPLR (prevailing on the date of reset) remains the same on date of reset if compared with that on the date of original sanction. Further, applicable rate of interest w.e.f. 01.06.2013 to be Base Rate. Case-3: Home Loan accounts under the scheme code LA127 (i.e, Special Home Loan scheme) sanctioned under fixed rate option from 16.12.2008 – 31.12.2009 - As per guidelines resetting of ROI is required after 5 years of sanction. In all these cases of Home Loans sanctioned under the Special Home Loan scheme, reset period falls due only after 01.06.2013, the applicable rate from the date of reset will be at Base Rate (floating). Case-4: Home Loan accounts under floating rate option: W.e.f. 01.06.2013 applicable ROI in all Home Loans under floating rate option should be base rate. 18. Conversion from Fixed Interest Rate to Floating Interest Rate Option: For Home Loans sanctioned upto 15.08.2007 at Fixed Interest Rate option the rate prevailing on the date of sanction remains applicable through entire tenure of such loans. Requests from customers in such cases may be considered for allowing conversion from fixed interest rate to floating interest rate option by Branch Manager with prospective effect subject to the following: • if the account is regular • as one time offer from the Bank. • upfront payment of charges on outstanding balance @ 0.5% for every year for the residual period of the loan maximum 2% of the amount outstanding on the date of allowing conversion. • Borrower’s request should be in writing and acceptance of borrower and guarantor be obtained on the copy of the branch letter conveying the revised terms (this should be kept with the documents). Master Circular on Baroda Home Loan

Page 24

19. Disbursement of Loan: i.

In case of outright purchase of house / flat ready for possession – Disbursement be made in one instalment directly to the seller of the house / flat. ii. In case of construction of house / flat – In 3 to 4 stages after physical verification, depending on the progress of construction. Payment can be made either to the builder directly or to the borrower subject to verification of bills/money receipts/invoices etc or certificate issued by approved valuer / architect certifying the progress of the work and the estimated expenditure having incurred there for, as the case may be. During the course of construction at least once valuation report from Bank’s approved/ Govt. valuer must be obtained. iii. To safeguard banks’ interest and as a preventive vigilance measure branches should adhere to the guidelines given hereunder:
Upon receipt of quotation / agreement the branch should obtain in writing the name of the Bank and Branch from the builder / vendor for the purpose of issuing Banker Cheque / Demand Draft pertaining to the disbursement.
To obtain request letter from borrower for making the payment to the builder.
To issue Demand Draft / Bankers Cheques in favour of Bank / Branch, A/cNo., Name of Builders / Vendors / Suppliers alongwith a letter addressed to the vendor.
Not to hand over the Demand Draft / Bankers Cheque towards disbursement to the borrower. iv. In case of extension – Payment can be made directly to the borrower after verification of bills/money receipts etc. • •

• •

Veracity of demand letter issued by the builder should be independently verified from the builder. Every disbursement, wherever disbursement is to be made in stages, should be backed by site / spot inspection and relative inspection report should be kept on record. Receipt for Banker’s Cheque / Demand Draft and letter for confirmation of Bank’s Lien in builders book must be obtained & kept on record. Post-sanction inspection after final disbursement should be carried out to ensure that borrower has taken possession of the house / flat (in case of Home loan), besides verification of end use of funds.

20. Unified Processing Charges: Unified processing charges to be levied as detailed below: For Loans upto Rs. 30/- lacs : 0.50% on Loan amount (Minimum Rs.5,000/- + Service tax) For Loans above Rs. 30/- lacs: 0.40% on Loan amount (Minimum Rs.15,000/- +Service tax & Maximum Rs.50,000/- + Service Tax)) In case of takeover of Home Loan: 0.10% +Service Tax without any maximum amount. Master Circular on Baroda Home Loan

Page 25


Unified processing charges include processing charges, documentation charges, document verification charges and pre sanction & one time post sanction inspection charges.
Charges in respect of Advocate fee for legal opinion and valuation charges are to be recovered separately in addition to above Unified Processing charges.
Unified Processing charges recovered, should be credited to ‘P/L Commission Earned – Service charge A/c’.
CIBIL/ EQUIFAX credit report charges to be recovered separately.
Please note that ‘Mortgage Creation Charges’ as conveyed vide Circular

No.HO:BR:106/51dated 01.03.2014 issued by Operations and Services Dept. is NOT applicable to all types of Housing Loans including Home Improvement Loan and Additional Assured Advance (AAA). 21. Insurance of the House Property & Personal Accident Insurance of the borrower: The house mortgaged with the Bank is to be insured. For Home Loans sanctioned upto 09.09.2012, Bank has a Scheme for free insurance cover in the name of “Baroda Home Loan Suraksha Bima Yojana” for house property mortgaged with the Bank and also accidental death insurance cover with the National Insurance Company limited, who are our partner of Bancassurance business. Under the Scheme, we were providing free property insurance cover alongwith free personal accidental death insurance cover in all our Home Loan Accounts under tie-up arrangement with National Insurance Company Limited (NICL). As per the scheme, insurance premium was fully borne by the Bank to cover Property Insurance and Personal Accident Cover in respect of principal borrower. Details of the Scheme is given in Annexure-3 But this facility of providing free property insurance on Baroda Home Loans under ‘Baroda Home Loan Suraksha Bima Yojana’ has been withdrawn w.e.f. 10.09.2012, but facility of providing free personal accidental insurance will continue as per revised scheme. The revised Scheme for obtaining personal accidental insurance and property insurance is given in Annexure- 2 22. Life Insurance cover to Home Loan Borrowers: Group Credit Life Insurance Cover for our Home Loan Borrowers are available under tie-up arrangement with M/s IndiaFirst Life Insurance Co and M/s Kotak Life Insurance Co. The Insurance Cover is optional and at the cost of borrower. Details of the Scheme is given in Annexure-1 Master Circular on Baroda Home Loan

Page 26

23. Prepayment Charges: No prepayment charges shall be levied on foreclosure of Home Loans irrespective of the nature of source of funds i.e, whether the loan is repaid from the own sources of borrower or by way of take over by other banks/HFCs or otherwise w.e.f. 15.12.2011. 24. Change of Tenure: Since w.e.f. 01.06.2013 rate of interest on Home Loans are delinked with tenure of the Loan this clause is deleted from this circular. 25. Inspection of House Property: i) Pre-sanction inspection is to be carried out :  to ascertain the correctness of various facts and data submitted by an applicant.  to verify the credentials and antecedents of the applicant.  to verify the house/flat proposed to be purchased /constructed with the bank finance and its boundaries vis-a-vis given in Sale/Lease Deed.  to do careful analysis of information collected during pre sanction inspection to arrive at a credit decision.  In short the above activities form the due diligence process in appraising the applications for loans.  Detailed Pre-sanction inspection including visit to the place of residence, work / business place as well as property to be purchased, must be carried out preferably without giving prior information to the applicant. Pre-sanction inspection report should be prepared in the format prescribed (Annexure- 19) and kept on record.  During Pre-sanction inspection, the branch official must cross verify the information submitted by the applicant with respect to his identity, residence, employment / business and property to be purchased.  Detailed guidelines on preventive vigilance and due diligence is as per Annexure–4.  No separate charge to be levied as pre sanction is part of processing. ii) Post –Sanction Activities:  To verify the end use of funds after each disbursement of the loan by physically verifying the assets created out of bank finance,  After completion of the house/dwelling unit, inspection be carried out at least once in 3 years if the account is regular. If this condition is not fulfilled, regular inspections are to be carried out as per administrative guidelines for inspection of other advances accounts.  For quick and immediate detection of misutilisation of bank's loan, if any and to immediately take corrective steps.  Inspection reports for each inspection are to be kept on record. Master Circular on Baroda Home Loan

Page 27

 Rs. 100/- plus service tax per inspection may be recovered for carrying out periodical post sanction inspection (asset verification). (Formats for post sanction (asset verification) report enclosed as Annexure – 20). 26. Home Loan to Staff Members under ‘Home Loan to Individuals’ under Public Scheme: Confirmed members of staff including part time employees can avail Home loan under ‘Home Loan to Individuals’ under Public Scheme. Details of the Scheme are given separately as Point No. V. 27. Discretionary Lending Powers: i.

For Public: Within general discretionary lending powers of the Branch Heads / Regional Authority as per their grade / scale.

ii. For Staff Related:
Relatives of other Senior Officer i.e, up to Scale III: Within general discretionary lending powers of the Branch Heads / Regional Authority as per their grade / scale.
Relatives of Senior Officers i.e, Scale IV and above: • General Manager (Zonal Head/ Functional Heads at BCC ) - Full powers. Accordingly, all Home Loan proposals of staff and relatives of staff in Senior Management Cadre i.e., Scale IV and above shall be considered by Zonal Heads in the rank of General Manager of the respective Branches/offices for any limit.
Any credit decision in respect of officers of senior management grade and their relatives is to be immediately advised to Retail Banking Department, Baroda Corporate Center for reporting to MCB.
Since, Housing Loans to staff under Public scheme are not classified under staff loans, please take care of guidelines conveyed vide Circular No.BCC:BR:104/178 dated 22nd May 2012 on setting up of Credit Committees at various levels and Circular No.BCC:BR:104/271 dated 30th July,2012 on modifications. Henceforth please take care of the same. 28. Free Credit Card : Free Credit Card (BOBCARD - complementary for first year) will be issued to Home Loan borrowers with loan limit above Rs.2/- lacs. Type of card will depend on loan limit as under: Master Circular on Baroda Home Loan

Page 28

Loan limit Up to Rs. 2/- lacs Above Rs.2/- lacs Above Rs.5/- lacs Above Rs.10/-lacs

Up to Rs.5/- lacs Up to Rs.10/- lacs

Type of BOBCARD No card Silver Exclusive Gold

(Detailed guidelines for issuing Credit Card given in Annexure - 8 29. Baroda Additional Assured Advance (AAA): i. Baroda Additional Assured Advance (AAA) is for our existing Home Loan Borrowers to provide hassle free finance to them for their various emergent needs (other than speculative purpose). The facility is granted against the security of extension of Equitable Mortgage of House Property already mortgaged to secure Home Loan. Detailed product features are given separately. 30. Withdrawal of concession to Group Home Loan Proposals and employees of Preferred organizations. The concession of 25 bps in interest rate on Home Loan offered to employee borrowers of preferred organizations and to group of borrowers has been withdrawn w.e.f. 11.08.2010. 31. Taking over of Home Loan Accounts from other Bank’s / HFC’s: As per our extant guidelines, branches can take over good accounts from other institutions / Banks. In case of take over of Home Loan accounts from other Banks no prior clearance is required from Regional / Zonal Head. However, branches need to observe the following safeguards in respect of such take over of accounts: i.

Accounts should be taken over in consideration / possibility of larger business interests / valuable connections.

ii.

There should not have been any reschedulement / restructuring in the account during last two years.

iii.

Accounts with the existing lenders should be under the category of Standard Assets.

iv. While taking over Home Loans from other Banks/HFCs, branches should ensure that a minimum stipulated margin and LTV Ratio as the scheme on the value of house property is available. Master Circular on Baroda Home Loan

Page 29

v.

The amount of Loan may include the outstanding balance, foreclosure fee payable to existing Bank, if any and stamp duty for creation of equitable mortgage in our Bank’s favour subject to margin, income and repaying capacity criteria, Loan to Value (LTV) ratio etc.

vi. Repayment period and EMI may be fixed, keeping in view our Bank’s guidelines in respect of income and repaying capacity of the applicant, LTV/margin norms and considering the age of borrower/co-borrower. vii. Additional Assured Advance (AAA) may also be considered/taken over along with take over of Home Loans as per norms. viii. Fresh valuation to be obtained from our approved valuer and lower of market value or distressed value with margin and LTV Ratio as stipulated and the same be considered on a practical/factual approach. ix.

Please note that the valuation norms that in case of Property purchased within last 3 years, the amount of Registered Sale Deed is to be taken as value of the Property is not applicable for takeover Home Loans. (Clarified vide Circular No.BCC:BR:105/534 dated 02.12.2013)

x.

All other collaterals charged to the previous institution from whom the loan is being taken over should also be made available as security to our Bank. However, the condition of handing over the collateral securities may be waived provided the borrower has made payment of above 50% of the loan sanctioned by such other Bank / HFC.

xi. The institution (Bank/HFC) should confirm the above to our branch and further that they are holding an equitable mortgage over the property. xii. The disbursement of the loan should be made directly to the institution and their receipt kept along with the loan documents i.e under no circumstances Banker Cheque be delivered to the Borrower. xiii. Takeover accounts are to be rated as per the applicable scoring model subject to minimum grade as per the scoring model. xiv. The prospective borrower should handover a Power of Attorney (Annexure-24 ) in favour of Bank of Baroda alongwith a letter addressed to the Bank / HFCs from where finance has been availed authorizing them to deliver the title deeds and all the collateral securities charged to them, directly to our bank branch upon receipt of the loan amount.

Master Circular on Baroda Home Loan

Page 30

32. Powers of Deviation & Deviation Charges Financial/non-Financial Deviations/Concessions in respect of scheme parameters/ guidelines may be considered as per Annexure- 9. (in terms of Circular No. BCC:BR:106/22 dated 21.01.2014) 33. Approval of Builder/Developer/Promoter: Branches in cities and large towns will recommend the names of reputed/ credible builders/developers/ promoters as also their projects to their respective Regional Authorities, who would be according approval to those conforming to the criteria. However, in metro cities, since some of the builders/ developers may be common for the entire city across all regions/branches, the approval may be accorded by the respective zonal authorities. For developing a healthy portfolio of housing finance it is necessary that the builders/developers/promoters of properties have good track record & enjoy good market reputation as genuine & credible builders. In order to ensure this, regions have been advised to prepare a negative list of builders and advise the branches to exercise due care and caution while entertaining the proposals relating to house property developed by such individuals and firms. It will be appreciated that along with the approval of builder/ developer/ promoters, if the projects/properties developed by them are also approved after due diligence, it will help branches in faster decision making and at the same time avoid the chances of perpetration of frauds and irregularities. Zonal Heads have been authorized for approval of projects in home loans after due diligence. In the event the builder is a private limited or a public limited company, report from the office of Registrar of Companies should also be obtained to ascertain whether the entire property is also subject to mortgage or any charge in favour of any financial institution or bank or any other creditor. Detailed guidelines are given in Annexure-7 34. Implementation of the orders of Delhi High Court. Branches are advised to ensure compliance of the orders of Hon’ble High Court of Delhi, during the hearing of writ petition in connection with the order of Supreme Court of India to seal all unauthorized business units set up in residential area in Municipal Corporation of Delhi are given in Annexure -16

Master Circular on Baroda Home Loan

Page 31

35. Payment of incentives to staff members against the Home Loan leads directed by them and converted into real business w.e.f.17.06.2013 Amount of incentives (as per earlier Revised guidelines applicable w.e.f. 01.04.2014 upto 31.03.2015 guidelines applicable up to 31.03.2014) Loan application above Rs.2500/- per Loan Rs.8 Lacs upto Rs.25 Lacs application Rural application Rs.2500/Branches Loan application above above Rs.5000/- per per Rs.10 Lacs Rs.25 Lacs application application upto Rs.50 Loan application above Rs.2500/- per Semi Lacs Rs.8 Lacs upto Rs.35 Lacs application Urban Loan application above Rs.5000/- per Branches Rs.35 Lacs application Loan Rs.5000/application Loan application above Rs.2500/- per per Urban & above Rs.10 Lacs upto Rs.50 Lacs application application Metro Rs.50 Lacs Loan application above Rs.5000/- per Branches Rs.50 Lacs application Detailed guidelines are given in Annexure-14 36.

Payment of service charges to Approved Builders against the Home Loan leads directed by them and converted into real business. Builders will be paid service charges, which should not exceed 0.25% of the Home loan amount for every case directed to the Bank or Rs.25,000/- which ever is lower subject to sanction and disbursement of Home Loan by the Bank. Scheme is effective from 17.06.2013 and will continue on ongoing basis till further instructions. Detailed guidelines are given in Annexure-15

37. Priority Sector Classification: Following accounts should be classified and reported under Priority Sector Advance: i.

Loans to individuals upto Rs.25 lakh in metropolitan centres with population above ten lakh and Loans to individuals upto Rs.15 lakh in other centres for purchase/construction of a dwelling unit per family excluding loans sanctioned to bank’s own employees.

ii. Loans for repairs to the damaged dwelling units of families up to Rs.2 lakh in rural and semi- urban areas and up to Rs.5 lakh in urban and metropolitan areas. Loans sanctioned in excess of limits stated above shall not be considered as part of Priority Sector advance for classification purposes. Master Circular on Baroda Home Loan

Page 32

BARODA HOME LOAN TO NRIs/PIOs/OCIs 1.

Purpose: Purchase of new residential house / flat. Construction of new house /dwelling unit . Purchase of old house/dwelling unit (not more than -15- years old). Purchase of plot of land, subject to the condition that a house will be constructed thereon within -3- years from the date of purchase of plot.  Repayment of the loan already availed from any other Bank / Housing Finance Company under their scheme to finance NRIs /PIOs/OCIs for housing.  For repair / renovation / extension of the existing house to:
Our existing Home Loan borrowers (under the scheme)
New borrowers
Borrowers who have availed Home Loans as NRI /PIO/OCI from other bank / HFC.    

A person who is already owning a house can also be considered for financing for purchasing / construction of a second house / flat for the purpose of selfoccupation. The loan shall be considered for residential properties situated in India. 2.

Area of operation: The branches may consider Home loan proposals provided it is in the city/ town of:  Location of new flat/house to be purchased/constructed or  Place of residence of the applicant in India.

3.

Eligibility & Age:  Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs) holding foreign passport, singly or jointly OR Overseas Citizens of India (OCI). •

For this purpose Person of Indian Origin (PIO) means:

a citizen of any country other than Bangladesh / Pakistan / Sri Lanka / Afganistan / China / Iran / Nepal & Bhutan if – a. he at any time held Indian passport or b. he or either of his parents or any of his grand parents was a citizen of India by virtue of the constitution of India of the Citizenship Act 1955, or c. the person is a spouse of an Indian citizen or a person referred to in subclause (a) or (b) above.

Master Circular on Baroda Home Loan

Page 33

•

Overseas Citizens of India (OCI) are specified as under:

a. A person registered as Overseas Citizen of India (OCI) under section 7 A of the Citizenship Act, 1955. b. As per the guidelines, an Overseas Citizens of India (OCI) has to be necessarily a Person of India Origin (PIO). c. A foreign national, who was eligible to become citizen of India on 26.01.1950 or was a citizen of India on or at anytime after 26.01.1950 or belonged to a territory that became part of India after 15.08.1947 and his / her children and grand children, provided his/ her country of citizenship allows dual citizenship in some form or other under the local laws, is eligible for registration as Overseas Citizen of India (OCI). Minor children of such person are also eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he / she will not be eligible for OCI.  Principal applicant should be having a regular job abroad in a reputed Indian / foreign company, organization or government department holding a valid job contract / work permit for the minimum past 2 years, or Must be employed/self-employed or having a business unit and staying abroad at least for 2 years.  Must have minimum gross annual income equivalent to Rs.5.00 Lacs per annum.  Wherever income of the family members is clubbed for higher eligibility they should be made co- borrowers.  Age: Minimum age must be 21 years. However, the minimum age of co-borrower can be 18 years. Age of the borrower plus repayment period should not be beyond retirement age or 65 years whichever is earlier. 4. Minimum Amount:  For purchase of new / old house / flat or construction of house / flat  For repairs / renovations / extensions

: Rs. 5/- Lacs. : Rs. 1/- Lacs.

5. Maximum Amount:  For purchase of new / old house / flat or construction of house / flat : Rs. 300/- Lacs for Metro Urban Branches : Rs. 100/- Lacs for Semi-Urban/Rural Branches Master Circular on Baroda Home Loan

Page 34

 For repairs / renovations / extensions  For purchase of plot of land

: Rs. 25/- Lacs. : Rs. 50/- Lacs.

The above is the maximum amount of loan. However, the actual quantum of loan should be arrived at after considering the income criteria, repaying capacity, LTV & margin as laid down under point no. 6,7, 8 & 9 below. For determining total cost of the house, the cost of car parking place / area located in same building / compound / society can be considered. However, it should be noted that such car parking area should be specific, identifiable and incorporated in the sale agreement / allotment letter. All the sanctioning authorities at branch level as well as Regional and Zonal Offices shall consider the Home Loan proposals upto their DLPs and if the proposal falls beyond their DLP, same shall be submitted to next higher authority for their consideration as hitherto. 6. Income Criteria: •

The maximum amount of loan should not exceed the following: 

In case of salaried persons

Monthly Income Eligible amount of loan Up to Rs.20,000/-36- times of monthly gross income More than Rs. 20,000/- & up to Rs.1 Lac -48- times of monthly gross income More than Rs. 1 lac -54- times of monthly gross income  In case of others viz. professionals / self-employed / business persons etc., -4- times of average (last two years) annual income. •

Wherever income of the family members is clubbed, they should be made coborrowers.

•

Employment status of the applicant, his/ her/ their source of income should be regular, stable, sustainable and of verifiable nature.

•

Income from salary/ business/ profession should be in accordance with nature / area of business, qualification, age, cadre in the organization etc.

•

Branch should obtain overseas bank account statement maintained by the applicant and analyze the same properly to ascertain the conduct of account and also to judge applicant’s other liabilities, repaying capacity etc.

•

In case the applicant is not maintaining his NRE account with us, branch should obtain statement of such account maintained by the applicant with other bank in India.

Master Circular on Baroda Home Loan

Page 35

7. Repaying Capacity: The loan amount will be determined by assessing the repaying capacity of the applicant with reference to his/her income and other factors such as the profile of the employer, stability of his/her business, number of dependents, credit history and the position of his assets and liabilities. i. In case of salaried persons: Total Deductions not to exceed Monthly Income (including proposed EMI) Up to Rs. 20,000/40% More than Rs. 20000/- and up to Rs. 50000/50% Above Rs.50000/60% ii. In case of others (Professionals/self-employed/business persons etc.): Total Deductions not to exceed Annual Income (including proposed EMI) Up to Rs. 2,40,000/50% Above Rs. 2,40,000/- & upto Rs. 12 Lacs 60% Above Rs. 12 Lacs 70%  An undertaking shall be obtained from the applicant declaring his/ her existing liabilities to assess the repaying capacity / disposable income.  For enhancing the repaying capacity, earning of spouse can be combined if the spouse joins as co- borrower even if the spouse is not a coowner of the property. 8. Loan to Value (LTV) Ratio: In view of the revised RBI guidelines, Bank has modified the Loan to Value (LTV) Ratio w.e.f. 15.09.2013 as under: Category Home Loans upto Rs. 20 Lacs Above Rs. 20 Lacs upto Rs. 75 Lacs Above Rs. 75 Lacs

LTV Ratio (%) : 90 % : 80% : 75%

Branches should not include stamp duty, registration charges, other documentation charges and other expenses like Life Insurance premium etc. in the cost of house property to calculate Loan to Value (LTV) Ratio w.e.f. 15.09.2013. 9.

Margin: In view of the revised RBI guidelines, Bank has modified the margin norms w.e.f. 15.09.2013 as under:

Master Circular on Baroda Home Loan

Page 36

Loan Amount

Purpose

Revised Margin 10%

Loans upto Rs.20/Lacs

Purchase of plot House/flat already constructed from own resources All other cases

Purchase of plot Loans above House/flat already constructed from Rs.20/- Lacs upto own resources Rs.75/- Lacs All other cases Purchase of plot Loans above House/flat already constructed from Rs.75/- Lacs own resources All other cases

10% 10% 20% 20% 20% 25% 25% 25%

Branches should not include stamp duty, registration charges, other documentation charges and other expenses like Life Insurance premium etc. in the cost of house property to calculate margin. You may observe that the margin norms for Loan upto Rs.20/- Lacs has been reduced to 10%. However, for Loans above Rs.75/- Lacs margin of 25% is to be stipulated in fresh sanctions. For existing Home Loans above Rs.75/- Lacs in case the margin is currently less than the ceiling prescribed for any reasons, efforts should be made to bring to it within limits.  The one time premium amount for Life Insurance Cover to Home Loan Borrowers under Group Credit Life Insurance Scheme can be financed as part of Loan at the request of the borrower, at the time of sanction. Premium amount can be part of the loan as per total eligibility of the borrower keeping the margin and LTV Ratio as mentioned above on cost of project excluding other charges like stamp duty, registration charges and other expenses like life insurance premium etc. Please note that Insurance premium should not be included on cost of project for calculating margin & LTV Ratio.  Advance deposited with the builder is to be treated as margin only after its genuineness is checked & verified to the satisfaction of the sanctioning authority. 

While taking over Home Loans from other Banks/HFCs, branches should ensure that a minimum margin and LTV Ratio as stipulated above on the value of house property is available.



For the purpose of finance, least of the value assessed by Bank’s approved valuer on a realistic basis at the current market value / cost of construction /agreement value should be considered.

Master Circular on Baroda Home Loan

Page 37



The margin money should be paid by a NRI borrower by way of foreign inward remittance through normal banking channels or out of NRE/FCNR/NRO accounts. Margin amount should be received in advance and shall be invested before disbursal of loan.

10. Security: • •

Equitable / legal mortgage of the property constructed / purchased or property to be renovated / repaired etc. Personal guarantee of spouse / family member, residing in India shall be obtained. If spouse is also residing abroad, personal guarantee of one / two persons resident in India having adequate worth shall be obtained.

Procedure for charging of securities, operational guidelines and safeguards to be observed for accepting the property as security etc. are applicable as per the Scheme guidelines of Baroda Home Loan to Individuals (Resident Indians). The properties under litigation and in poor condition should not be considered for financing. 11.

Rate of Interest: The applicable rate of interest and other guidelines in respect of application of rate of interest shall be at par with that of Baroda Home Loan to Individuals (Resident Indian).

12. Documentation: Following documents are to be obtained. • Term loan agreement. • Declaration cum Undertaking cum Authority. • General form of Guarantee (LDOC 33). • Usual procedure for creation of equitable mortgage of the immovable property being financed to be adopted. • When the loan is considered for purchase of a plot, the branch should obtain a suitable stamped undertaking from the borrower specifying that house shall be constructed thereon within the period stipulated in the scheme. The branches are required to incorporate suitable covenants in the loan documents at the time of sanction, to enable them to recall the loan and / or charge higher rate of interest, ab initio, in the event of non-compliance of the above condition by the borrower. 13. Repayment Period: •

Maximum 15 years including moratorium.

Master Circular on Baroda Home Loan

Page 38

•

Moratorium Period: For construction of new house - one month after completion of the house subject to maximum period of 12 months from the date of first disbursement. For purchase of new/ old house/ flat - one month after taking possession subject to maximum of 3 months from the date of first disbursement. In case of repairs/ renovation/ extension, repayment to commence one month after completion of renovation/ extension / repair work subject to maximum moratorium period up to 6 months.

•

Payment should be remitted from abroad through normal banking channels or out of funds in NRE/ NRO accounts.

•

Post-dated cheques drawn on NRE/ NRO account of the borrower are to be discontinued. ECS Mandate as per extant guidelines to be obtained.

•

As liberalised by RBI, now close relatives (as defined under section 6 of Companies Act, 1956) of the borrower in India may also repay the installments of such loans, interest and other charges, if any, through their bank account directly to the borrower’s loan account. List of close relatives is as per Annexure – 11

•

If the house/flat is rented out, the 50% of rental income or stipulated EMI, whichever is higher should be repaid every month.

•

In exceptional cases, the term may be extended beyond age limit / term prescribed under the scheme if borrower provides adequate security coverage in the form of Bank’s FDRs, NSCs, Govt. Security etc. to ensure timely repayment.

14. Recovery of interest for the pre-EMI period. Interest charged during the pre-EMI period is to be recovered as and when debited in the account. 15.

Change in status of the Borrower. In case of change in status of the borrower during the tenure of the loan, the repayment schedule may be reworked-out keeping in view his revised status / income / repaying capacity, age etc. The rate of interest shall also be re-fixed depending upon total tenure of the loan, as applicable to Home Loans of Indian residents and effective on date of conversion. For this purpose tenure shall be computed from the date of first disbursement to the date of last installment.

Master Circular on Baroda Home Loan

Page 39

Such revised rate of interest shall be applicable prospectively on the outstanding balance in the account. The branch should obtain the request in writing from the borrower to this effect. The revised repayment schedule / rate of interest / other terms and conditions should be advised to the borrower in writing and acceptance thereof should be obtained from him /her and guarantor/s. 16. Application form: A specimen copy of application form is as per Annexure – 18. Suggestive list of documents to be obtained from the applicant alongwith application is as per Annexure - 10 (B). 17.

Reporting/Classification: Loan sanctioned under Baroda Home Loan to NRIs/PIOs/OCIs shall not be considered as part of Priority Sector advance for classification purposes.

18. Execution of Documents & Operation through Power of Attorney. A person intending to buy a dwelling unit through finance from a bank has to undertake a series of activities viz. identification of a dwelling unit, finalization of deal with the builder/ developer of the property, submission of loan application to financing bank, execution of loan documents, obtaining disbursements, taken possession of the property and complying with various related formalities. The series of these activities are time involving and may require presence of the buyer/s. It may not possible for Non Resident Indians to visit India frequently for completing / undertaking various tasks related to finalization of the property and obtaining the loan from a Bank. If it is decided for valid and justifiable reasons to permit the Power of Attorney holder to execute the documents, the relative powers of attorney should be registered in the books of the Bank and a true copy of the Power of Attorney should be kept with the documents. Copy of standard format of Power of Attorney is enclosed in Annexure- 22 1.

An NRI (not under any legal incapacity to contract) desirous of granting Power of Attorney in favour of his relative or any one else, may do so in the draft format as per Annexure-22.

2.

The Power of attorney to be executed abroad shall be got attested by the office of Indian Embassy of that country. Such a Power of attorney needs to be executed at the office of Indian Embassy only and not at the office of Embassy of that foreign country.

Master Circular on Baroda Home Loan

Page 40

3.

Branches should ensure that POA granted by the principal in favour of the agents/attorney is unconditional, duly stamped and is in force as on date. It is mandatory that the POA executed overseas should be done only in the office of the Indian Embassies abroad and should be got attested by the Office of the Indian Embassy and those executed in India should be done only in the office of the Registrar of Assurances. The POA executed in the presence of Notary Public/magistrate, either in India or abroad should not be entertained.

4.

The attorney / agent should also be a major and of sound mind. Further, the person appointed as “Agent” in the POA should not be a third party but they should be closely related to the Principal. Closely related category include only husband, wife, son, daughter, father, mother, father-in-law, mother-inlaw, brother, sister, daughter-in-law, son-in-law, brother-in-law and sister-in-law of the Principal. Efforts should also be taken to include the “Agents/POA holders”as guarantors, in their personal capacity, thereby involving them at a future date for recovery and also for their commitment due to any cancellation of the Power of Attorney in the intervening period.

5.

On receipt of duly executed Power of Attorney in India the same is required to be adequately stamped within 90 days from the date of receipt in India and same should be got registered with the Registrar of Assurances to make it enforceable till such time its revocation.

6.

Power of Attorney attracts stamp duty under the provisions of the Stamp Act applicable to the state, where it is to be acted upon.

7.

Power of attorney granted by one person, who has a joint account with another authorizing a third party to operate upon the joint account, should not be acted upon. All the parties to a joint account must join in executing such a power of attorney.

8.

An attorney cannot employ his principal’s property for his own use, Branches should not, therefore, accept without enquiry, cheques signed by a person as attorney for another party for credit of his personal account.

9.

The details of power of attorney so received should be noted in a register e.g. date of receipt, date of power of attorney, name of the client, nature of account and name of the attorney. Each entry in the register should be authenticated by the officer, who has verified the copies. Such registration of Power of Attorney in the books of the branch must be initialed by the Branch Manager / Joint Manager, who will be responsible for its correctness.

10. The documents should state full names of the parties. Initials/ short names or abbreviated names of the parties should not be written. 11. The Power of Attorney holder after fulfilling following conditions may be allowed to execute the documents. Master Circular on Baroda Home Loan

Page 41

i. The Regional Head not below the rank of Deputy General Managers may authorize the branches for execution of the documents through POA, only in case of NRE customers. The same is subject to verification of the Power of Attorney by Our Bank’s Legal Officer and with their clear opinion on acceptability of the executed Power of Attorney. ii. If the Regional authority is below the rank of Deputy General Manager, Zonal Authority may exam the same and convey the authority to get the documents executed by the Attorney. iii. The concerned branch / office of the Bank to obtain letter of confirmation from the Donor of Power of Attorney that the power given by him / her is valid and subsisting as on date and not revoked. iv. Only on receipt of such authority, the branch can allow to get the documents executed by the Power of Attorney holder. v. The concerned branch to inform by a confirmatory letter to the Donor about the documents having been executed by the Attorney immediately on execution. vi. A single letter of confirmation to be obtained from the Principal instead of the Principal signing all the documents executed by the POA holder. The draft copy of the letter of confirmation is given in Annexure-23, which is to be obtained from the Principal confirming that the documents executed by his Attorney are binding upon him and thus valid, subsisting and enforceable. This should be got executed with due stamping as an agreement and which will suffice the legal requirements of ratification of the action of POA holder by the donor. However, the same has to be got executed during the immediate future available opportunity and for all practical purposes where LAD is to be obtained, the due date of LAD will be based only on the date of original execution of the documents by the POA holder. In the interest of the Bank, branches to verify the identity and credentials of Power of Attorney holder before proceeding to consider the loan on the basis of POA. The branches may also explore the possibility of obtaining personal guarantee of POA holder. 19. Other Parameters/ product features: All other terms in respect of Risk Rating, interest application, Disbursement, Unified Processing charges, Procedure of Property Insurance & Personal Accident Insurance, Availability of Life insurance cover, Premature Closure, Pre-sanction, Post-sanction, Discretionary Lending Powers, Take over of Home Loans from other Bank/HFCs, Deviations etc. are applicable at par with Baroda Home Loan to Individuals.

Master Circular on Baroda Home Loan

Page 42

BARODA HOME IMPROVEMENT LOAN 1. Purpose: •

For repair / renovation / improvement of existing house.

•

Purchase of furniture / fixture / furnishing / other gadgets such as fans, geysers, air conditioners, water filters, air purifiers, heaters, desert coolers, etc. required to : o Our existing Home Loan borrowers o New borrowers o Borrowers who have availed Home Loans from other Bank/HFC.  Property under litigation or in poor condition should not be considered for financing.  The House should not be older than 35 yeas. Residual life of the house may be minimum repayment period plus 5 years to be certified by approved architect/valuer vis-à-vis total repayment period of the loan.

2. Eligibility: •

All individuals (Resident Indians) singly or jointly owning a dwelling unit in their name/s.

•

Age: Minimum age - 21 years. Maximum age of the borrower + repayment period should not be beyond retirement for salaried person and 65 years in case of others.

•

HUF, NRIs, Staff members are not eligible.

•

Principal applicant must have consistent and stable source of income minimum for last -3- years.

3. Maximum Amount of Loan Maximum Amount of Loan: Rs. 10.00 Lacs with the provision that the loan component for furniture / fixture / fittings / other gadgets should not exceed Rs. 5.00 Lacs However, actual quantum of loan be arrived at after considering the income criteria & repayment capacity as per point No.4 herein below. •

Salaried persons: -2- times of gross annual income

•

Other than salaried persons i.e, professionals/self employed/business persons etc:

Master Circular on Baroda Home Loan

Page 43

-3- times of net annual income (average of last three years) plus depreciation claimed in individual capacity and not by the business unit. This may be verified from income tax return and statement of income and expenditure. • •

Wherever income of other family members is clubbed, they should be made coborrowers. Normally Pension income is not to be considered for calculating the eligible loan amount. However, if it is large enough, the same may be considered.

4. Repayment Capacity i. In case of salaried persons: Monthly Income Up to Rs. 20,000/More than Rs. 20000/- and up to Rs. 50000/Above Rs.50000/-

Total Deductions not to exceed (including proposed EMI) 40% 50% 60%

ii. In case of others (Professionals/Self-employed/Business persons etc.): Annual Income Up to Rs. 2,40,000/Above Rs. 2,40,000/- & upto Rs. 12 Lacs Above Rs. 12 Lacs

Total Deductions not to exceed (including proposed EMI) 50% 60% 70%

5. Margin: 25 % of Project Cost which includes :o estimated cost of repairing / renovation o cost of furniture / fixture / furnishing / other gadgets 6. Securities: •

Mortgage of the property to be repaired/renovated.

•

Wherever it is possible to create equitable mortgage or wherever the customer desires that the equitable mortgage need not be insisted upon, branch may as a special case accept, at its discretion, security of adequate value in the form of life insurance policies, Government Promissory Notes, NSCs, KVPs, RBI Bonds or such other security as may be deemed adequate. Margin on above securities is to be maintained as per extant guidelines applicable for financing against those securities.

Master Circular on Baroda Home Loan

Page 44

•

Loans upto Rs.50,000/- in rural areas and upto Rs.2/- Lacs in other areas can be given on clean basis provided employers undertaking to recover instalment from salary is made available or third party guarantee of a person whose worth should be atleast double the amount of loan and subject to obtain ECS mandate for recovery of EMIs as per extant guidelines. However, a stamped undertaking that the borrower shall not create any charge on the said property to any third party and that he will create mortgage of the dwelling units/ housing property at a later date if desired by the bank, be obtained from the borrower.

•

Total clean/unsecured exposure (i.e, without collateral security) to the customer including this loan should not exceed Rs.2/- Lacs.

7. Rate of interest. Base Rate + 2.50 % 8. Documentation: Following documents are to be obtained. • Term loan agreement. • Declaration cum Undertaking cum Authority. • General form of Guarantee (LDOC 33), wherever third party guarantee is stipulated. • Usual procedure for creation of equitable mortgage of the immovable property being financed to be adopted. 9. Repayment Period: •

Maximum -10- years by Equated Monthly Installments.

•

Moratorium period of -6- months or one month after completion of repair/renovation work whichever is earlier.

•

In case of salaried persons drawing pension, the repayment period can be extended upto 65 years of the age subject to the condition that total deduction including EMI of this loan should not be more than 60% of the pension. In case total deduction exceeds 60% of the pension, the borrower to deposit adequate amount in the loan account so as to reduce the outstanding amount of loan to the extent which can be served within 60% of the pension.

•

In exceptional cases, this term may be extended beyond above age limit if borrower pledges FDRs / NSCs / Govt. Security etc. of adequate value to ensure continuity of income for repayment of loan installment with interest if sanctioning authority is satisfied about the same.

Master Circular on Baroda Home Loan

Page 45

10. Disbursement of Loan •

In case of repair/extension : Directly to the borrower subject to verification of bills/money receipts etc. or certificate issued by approved valuer/architect certifying the progress of the work and the estimated expenditure having incurred therefore, as the case may be.

•

For furniture/fixtures/furnishing and other gadgets: Directly to the Supplier.

11. Unified Processing Charges. •

0.50% of the Loan amount + service tax, only once at the time of sanction.

12. Advocate’s fee: • The actual fee charged by Advocates for giving their opinion reports for verification of title deeds and documents for creation of Equitable Mortgage is to be paid by the borrowers. 13. Insurance of the House: • House mortgaged with the Bank is to be insured. • Insurance modalities are similar to the Home Loan product. 14. Prepayment Charges: •

No prepayment charges shall be levied on foreclosure of Home Loans irrespective of the nature of source of funds i.e., whether the loan is repaid from the own sources of borrower or by way of take over by other banks/HFCs or otherwise w.e.f. 15.12.2011.

15. Priority Sector Classification •

Loans for repairs to damaged houses: Upto Rs. 2/- Lacs in rural and semi urban areas, and upto Rs.5/- Lacs in urban and metropolitan areas will be treated as priority sector advance. Loan sanctioned in excess of limits as stated above shall not be considered as part of Priority Sector Advances for classification purpose.

16. Other parameters/guidelines. All other features like pre-sanction inspection, post-sanction inspection, Discretionary Lending Powers, take over guidelines, Free Credit Card, Powers of Deviations, Preventive Vigilance guidelines are similar to Baroda Home Loan to Individuals.

Master Circular on Baroda Home Loan

Page 46

BARODA ADDITIONAL ASSURED ADVANCE (AAA) Baroda Additional Assured Advance (AAA) is a Top-up Loan facility extended to Home Loan Borrowers for any purpose except speculative/illegal purpose. The facility is granted against the security of extension of Equitable Mortgage of House Property already mortgaged to secure Home Loans and can be availed to a maximum of 5 times during the entire tenure of Home Loan. Detailed product features of the Scheme is as under: 1

Type of facility

• •

Term Loan / Demand Loan (as per total period of loan) Separate Loan a/c is to be opened

2

Purpose of loan

•

Any purpose excluding speculative or illegal purpose

3

Eligibility

•

All Existing Home Loan (including Home Improvement Loan) Borrowers including NRIs /PIOs, Staff and Ex-staff Members (availed home loan under public scheme as well as Staff Housing Loans) whose conduct of the account is good and the account is classified Standard.

•

There is no adverse feature / Auditor's/Inspecting Officer's remarks in existing Home Loan a/c.

•

The facility can also be considered when a Home Loan account is taken over from other banks/HFCs. (Detailed guidelines given hereunder under Point No. 17).

•

Co-borrower/s can be added to arrive higher eligibility amount subject to:  Addition of co-borrowers should be limited only to very close relatives i.e. first level which comprises spouse, father, mother, son, daughter, daughter-in-law and sonin-law.  If income of the co-borrower/s is accepted for the purpose of adding the income to the income of principal borrower for arriving higher eligible limit, sustainability of income of co-borrower/s has also to be ensured and assessed on the same lines of salaried/ professional/ selfemployed / Businessman etc. as the case may be.  Minimum age of the co-borrower should be 18 years and maximum age should be as stipulated for principal borrower as per the age criteria of the scheme.  KYC Norms to be strictly complied with.  Appropriate verification of funds utilized by the borrowers to be undertaken by carrying out pre and post disbursement inspection at every stage.

Master Circular on Baroda Home Loan

Page 47

  4

No deviation should be allowed in income criteria and/or repayment schedule. Full fledged due diligence to be carried out.

Age Minimum Age: 21 years (applicant) 28 years (co-applicant) Maximum age: •

•

5

Limit

Age of the borrower + tenure of AAA loan should not exceed 70 years as per laid down norms mentioned under Home Loan Product (For Resident Indian) Age of the borrower + tenure of AAA loan should not exceed 65 years (For NRIs/PIOs/OCIs)

•

Minimum Rs.1/- Lac

•

Maximum Rs.200/- Lacs Or 75% of Residual Value of House Property after deducting 150% of outstanding loan amount of Existing Home Loan whichever is lower.

6

Margin

•

25% of Residual Value of House Property after deducting 150% of outstanding loan amount of Existing Home Loan.

7

Review of the account

• •

Account to be reviewed annually Due date to be synchronized with the due date of Home Loan account

8 9

Rate of Interest Repayment

• •

1.50% over Base Rate By Equated Monthly Installments (EMI). First installment to fall due one month after first disbursement.

•

•

Repayment period: As per request of the borrower subject to repaying capacity. However the maximum period should not be more than the remaining period of Home Loan. In case the Home Loan a/c is foreclosed, then the repayment of AAA loan account is to be rescheduled in such a way that the loan (AAA) is liquidated maximum within a period not exceeding four years.

• •

Upto Rs.30/- Lacs: 0.50% (Minimum Rs.5000/-) + Service Tax Above Rs.30/- Lacs: 0.40% ( Minimum: Rs.15,000/-, Maximum: Rs.50,000/- ) + Service Tax

10

Unified Processing Charges

Master Circular on Baroda Home Loan

Page 48

11

Repaying capacity

•

• • 12

Security

• •

13

Documents

•

•

14

Valuation of the property

There should be commensurate increase in take home salary / income of the borrower when AAA facility is considered. The total deductions (including Home Loan and AAA loan) should not exceed 60% of gross income. Borrower to submit necessary papers in support of income Extension of the existing equitable mortgage of the house created to secure the Home Loan. Personal guarantee of third party if the same is stipulated in Home Loan. In case of Term Loan  Term Loan Agreement  General Form of Guarantee if guarantee is stipulated. In case of Demand Loan  DP Note  Letter of installment with acceleration clause  General form of Guarantee, if guarantee is stipulated

 In case of properties acquired within last -3- years, amount of registered sale deed should be taken as value of property. (In such cases fresh valuation may be dispensed with if the sanctioning authority is satisfied with registered value). • But for any reason, if the present Market Value is higher than the registered value (registered within last 3 years) it requires prior permission from Regional Authority to accept the present Realisable Market Value as value of property. Regional authority need not refer this to BCC for approval. • Similarly, if the present Market Value is lower than the registered value (registered within 3 years), the present Realisable Market Value of the property is to be accepted as the value of the property.  In other cases, i.e, execution of deed is prior to 3 years, Realisable Market Value as per the fresh valuation from approved valuer to be accepted to the satisfaction of the sanctioning authority.  In case of existing Home Loan accounts, present Realisable Market value to be accepted as value of security subject to the condition that present valuation to carried out only after three years of previous valuation.

Master Circular on Baroda Home Loan

Page 49

 In case of Take over: •

Fresh valuation to be obtained from our approved valuer and lower of market value or distressed value with margin and LTV Ratio as stipulated and the same be considered on a practical/factual approach.

•

Please note that the valuation norms that in case of Property purchased within last 3 years, the amount of Registered Sale Deed is to be taken as value of the Property is not applicable for takeover Home Loans including AAA. (Clarified vide Circular No.BCC:BR:105/534 dated 02.12.2013)

15

Maximum times the loan can be availed

•

16

Insurance of house/flat

• Property Insurance Cover to be obtained at the cost of borrower as per Bank’s norms. • Free Personal Accidental Death Insurance Cover is available under Master Policy. • Group Credit Life Insurance Cover (Optional and at the cost of Borrower)

17

In case take over from other banks/HFCs

• • • • • •

This facility can be availed maximum 5 times during entire tenure of Home Loan provided previous AAA account has been adjusted.

The AAA facility can also be considered when a Home Loan account is taken over from other banks/HFCs. Asset Classification of the account taken over must be "Standard" There must not be any over dues at the time of take over. Statement of account to be obtained from the earlier bank/HFC. Valuation of the property should be done afresh. Other guidelines regarding sanction of Home Loans/Insurance/Recovery of charges etc. to be followed.

18. Powers of Financial/non-Financial Deviations/Concessions in respect of Deviations and scheme parameters/ guidelines may be considered as per Annexure- 9. (Ref Circular No.BCC:BR:106/22 dated 21.01.2014) Deviation charges 19. Priority/ non- For reporting purpose AAA loans are segmented under Home priority sector Loan portfolio. Classification However, AAA loans are to be classified under priority/nonpriority classification based on the purpose (activity) for which the loan is utilized. While incorporating data in ascrom, Master Circular on Baroda Home Loan

Page 50

Branches should ensure to feed proper activity codes for AAA loans in order to classify the accounts in priority/non-priority based on the purpose. 20. Issuance interest certificate borrowers income purpose.

of to for tax

For the purpose of income tax, branches may issue certificate pertaining interest and principal repaid during the year to Home Loan borrowers. In case of AAA Loan, Branches should issue such certificate for income tax purpose only if the disbursed amount is utilized for housing purpose duly supported by original bills, receipts etc. and pre/post sanction inspections.

Master Circular on Baroda Home Loan

Page 51

HOME LOAN TO STAFF MEMBERS UNDER PUBLIC SCHEME 1) Eligibility Criteria: Confirmed employee of the bank (including part time employee). 2) Purpose: i)

Constructing a new dwelling unit or for purchasing a plot subject to a condition that a house will be constructed thereon within three years of such purchase. ii) Purchasing new dwelling unit or old dwelling unit not more than 15 years old. iii) Bridging the gap after availing Staff Housing Loan / Supplemental Housing Loan. iv) Purchasing / constructing a second dwelling unit. v) Meeting escalation of cost on the basis of revised estimates up to a maximum of 25% of original cost supported by satisfactory documentary evidence / valuation report of approved Architect. vi) Repairs / Renovation / Extension of existing house / flat. vii) Repayment of loan already availed from a Housing Finance Company and / or other institutional sources/ other sources, subject to production of documentary evidence.

3) Maximum Amount: i) For purchase of plot : Rs.10/- lacs. ii) For purchase new / old dwelling unit /construction of house : Rs. 25/- lacs. iii) Repairs / Renovation / Extension : Rs. 5/- lacs. Subject to:  Total deductions from the salary of the employee including instalment of proposed Home Loan should not exceed the norms as detailed in this circular for public under Salaried class.  If spouse / any family member is made co-borrower, his/ her income can also be considered for computing loan eligibility and repaying capacity. 4) Margin & LTV Ratio: i) For repairs / renovation / extension of existing dwelling unit :25%. ii) For purchase of new / old dwelling unit/ construction of house/ Purchase of Plot : (As applicable to Home Loan to Individuals-Public Scheme) If loan is to be availed along with loan under staff scheme, margin is to be reckoned on the basis of cost of project less amount of loan sanctioned under Staff Housing Loan Scheme and / or surplus out of old dwelling unit sold as the case may be.

Master Circular on Baroda Home Loan

Page 52

5) Repaying Capacity: Monthly Income Up to Rs. 20,000/More than Rs. 20000/- and up to Rs. 50000/Above Rs.50000/-

Total Deductions not to exceed (including proposed EMI) 40% 50% 60%

Repayment capacity to be calculated taking into consideration the deduction of income tax, other statutory deductions etc. besides all reimbursements and other Loans EMI payments, excluding Life Insurance Premiums. Payment of all type of Life Insurance Premiums (except premiums of Unit Linked Insurance Plan - ULIP) irrespective of Insurance Company issuing the policy, need not be considered for deduction. 6) Rate of Interest Rate of interest will be same as applicable under public scheme. The staff is eligible for concession of 0.25% in rate of interest subjected to the condition that effective rate of interest should not go below Base Rate. However since, at present the applicable rate of interest on Baroda Home Loan is Base Rate, this concession is restricted. 7) Repayment Period and Maximum Age: i.

Maximum repayment period is -30- years, including moratorium period.

ii. Maximum moratorium shall be -36- months as under: -18- months moratorium period for under construction Houses and Building upto 7th floor, thereafter -6- months additional moratorium per floor subject to maximum of -36- months. (OR) One month after completion of house/ taking possession of flat/house, whichever is earlier. iii. The repayment schedule should be fixed on a realistic manner taking into account the repayment capacity of the staff member, which should normally be around 30% of his income. Branches, however, are free to fix higher repayment amount at the request of the staff member and / or after taking into consideration the verifiable family income consisting of spouse, children and parents residing in the household. iv. Maximum Age of borrower during which loan to be repaid:

Master Circular on Baroda Home Loan

Page 53

(a) Maximum age is 70 years. i.e., the age by which the Loan should be fully repaid, subject to availability of sufficient regular and continuous source of income for servicing the loan repayment, provided:

(i)

(ii)

Son/ Daughter/ Spouse who is a legal heir and preferably below 50 years of age, with sufficient income for servicing the loan repayment joins as Co-Borrower/Guarantor. (OR) If borrower pledges FDRs / NSCs / Govt. Security etc. of adequate value to ensure continuity of income for repayment of loan installment with interest if sanctioning authority is satisfied about the same.

(b) Other wise i.e, if not fulfilling the above criteria (i) or (ii), age of the borrower plus repayment period should not be beyond retirement age.

(c) Maximum age can be considered upto 70 years, also in case of persons drawing pension, subject to the condition that 40% of the pension is sufficient to pay EMI. In case EMI exceeds 40% of the pension, the borrower to deposit adequate amount in the loan account so as to reduce the outstanding amount of loan to the extent it can be serviced by 40% of the pension. v. If any employee want to continue loan after retirement age to avail tax benefits etc., bullet repayment may also be permitted, if probable outstanding amount (i.e. including interest) on the proposed date of repayment is secured by matching amount of Bank’s FDR, NSCs /Govt Securities etc. and borrower gives an undertaking to liquidate loan with maturity proceeds of the securities charged to the Bank. vi. The branch may fix monthly / quarterly installments on graduated basis or EMI as requested by staff member 8) Security i.

Mortgage of the property to be constructed / purchased.

ii.

If mortgage of the property is not feasible or even if it is possible to create equitable mortgage but staff desires that the equitable mortgage need not be insisted upon, in such case branch may as a special case accept at its discretion, security of adequate value in the form of Bank’s FDRs, NScs, Govt. Bonds, life insurance policies or such other security as may be deemed adequate, along with stamped undertaking that he/she will not create any charge on the said property to any third party and that he / she will create mortgage of the dwelling unit / housing property at a later date if desired by the bank.

Master Circular on Baroda Home Loan

Page 54

Margin on above securities is to be maintained as per extant guidelines applicable for financing against those securities.  Exception to the above will be considered in respect of staff members who wish to avail loan for the first house / flat under the scheme for bridging the gap after availing staff Housing Loan and / or non refundable withdrawal from Provident Fund. A simple deposit of title deeds of the land / house / property alongwith an undertaking that the house / flat will not be disposed off during the pendency of the advance.  The above provision will also be applicable to staff members who wish to avail loan under the scheme for repairs / renovation / extension of their first house / flat purchased by availing Staff Housing Loan at concessional rate of interest. 8. Service Charges: i. Processing Charges (only once at the time of sanction): Rs.200/A Upto Rs. 2/- Lacs B Above Rs.2/- Lacs & upto Rs.5/- Rs.100/- per Rs.1/- Lac or part thereof Lacs C Above Rs.5/- Lacs Rs.750/+ Service Tax applicable ii. Documentation Charges: A B C

Upto Rs. 25,000/Nil Above Rs.25,000/- & upto Rs.2/- Lacs Rs. 350/Above Rs.2/- Lacs Rs.1000/+ Service Tax applicable

(c) Advocates / Valuers fees : Actual charges to be recovered. 9. Disbursement : Disbursement of loans sanctioned be made at branch level in stages in accordance with terms of sanction. 10. Submission of Valuation Reports: Estimate/ valuation report will be obtained at following stages: 1. Initial estimates at the time of sanction. 2. Once while construction in progress. 3. Final Valuation.

Master Circular on Baroda Home Loan

Page 55

Estimates and valuation report of any Govt. registered Valuer / Architect / Civil Engineer can be accepted. 11. Other Conditions: a. House / Flat to be insured adequately covering all perils viz. Flood, Fire, Riot, Civil-Commotion, Earthquake etc. b. Vigilance clearance to be obtained for the concerned staff borrower before disbursement of the loan. c. A/c is not to be taken over from other Bank / financial institution if there are overdues in the account. d. A separate account for loan sanctioned under the scheme will have to be maintained, if the staff member is already having housing loan in his name. 12. Sanctioning Authority For advances to staff other than to Senior Officers (i.e. officers in SM / GS- IV and above), as per general discretionary lending powers meant for public housing finance scheme (Subject to obtaining vigilance clearance from Regional/ Zonal / Corporate Office, as the case may be, before disbursement). For advances to staff in Senior Management Cadre i.e, Scale IV and above shall be considered by the Zonal Heads of the respective branches/offices irrespective of Loan amount. Please also note that competent authority for sanctioning Home Loans under above scheme to staff member against whom disciplinary action is either pending or contemplated shall be the General Manager (HRM), Corporate office. Advances to Senior Officers shall be reported to MCB through Retail Banking Deptt, BCC, Mumbai.
Since, Housing Loans to staff under Public scheme are not classified under staff loans, please take care of guidelines conveyed vide Circular No.BCC:BR:104/178 dated 22nd May 2012 on setting up of Credit Committees at various levels and Circular No.BCC:BR:104/271 dated 30th July,2012 on modifications. Henceforth please take care of the same.

13. Other terms and conditions: Other terms and conditions, which have not been specifically mentioned in the scheme for staff member, shall be the same as applicable to General Public for Home Loan. Master Circular on Baroda Home Loan

Page 56

GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME (GJRHF) Objective: To extend financial assistance for construction /purchase /repairs/extension of dwelling units in Rural Areas the population of which does not exceed 50000 as per 1991 census. Purpose: For construction of new dwelling units, acquisition of new dwelling units not older than 20 years, repair/renovation/extension of existing house, takeover of loan already availed from any Bank/HFC and for construction of dwelling units cum farm house on agriculture land for the purpose of residence and storage of farm equipments/implements and farm produces. Eligibility: Any individual residing in Rural area with population not exceeding 50000 and having sufficient repayment capacity. Maximum Limit: Rs.100.00 Lacs and Rs.1.00 Lac for repair/renovation of existing dwelling unit. Margin: 10% on project cost Security: Equitable Mortgage of house property or any other security like LIC policies/NSCs/KVPs/FDR or Government Guarantee Rate of Interest: As per interest rates applicable for normal Housing Loan scheme of Bank. Repayment: In EMIs or should be fixed in such a way that it synchronises with income patters of the borrower i.e., crop cycle. All other features and guidelines are similar to Baroda Home Loan to Individuals.

Master Circular on Baroda Home Loan

Page 57

Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS). The Ministry of Housing and Urban Poverty Alleviation, Government of India, has established a Credit Risk Guarantee Fund Trust for providing guarantees in respect of low-income housing loans. A Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS) has been launched by the Government of India on 31st October 2012, which will be managed by the National Housing Bank. Under the Scheme, the Trust will provide credit risk guarantee to the lending institutions against their housing loans up to Rs.5.00 lakh granted to the borrowers in the Economically Weaker Section (EWS)/ Lower Income Group(LIG) categories in urban area without requiring any collateral security and/or third party guarantee. The extent of Guarantee Cover to be provided under the Scheme is 90% of the amount in default in respect of loan amount up to Rs 2.00 lakh and 85% of the amount in default for housing loan above Rs 2.00 lakh and up to Rs 5.00 lakh. Our bank has executed a MOU with the National Housing Bank on 4th March 2013 for participating in CRGFS. Hence the scheme is available to eligible Home Loans sanctioned from 04.03.2013 only. Salient Features of the scheme are as under: 1. Eligible Borrower: The trust shall cover Housing Loans sanctioned to new eligible borrower in the low income housing sector in urban areas for Housing Loans not exceeding Rs.5.00 Lacs after entering into an agreement with the Trust, with out any collateral security and/or third party guarantees. (Our Bank has executed MOU with the National Housing Bank on 04.03.2013 for participating in CRGFS) and a housing unit size upto 430 sqft (40 sqm) carpet area and to which housing loan has been provided without any collateral security and/or third party guarantee. Eligible borrowers, as defined above, forming a group or housing society of at least 20 members, shall also be eligible under the scheme. Trust will provide guarantee cover in respect of loan proposals sanctioned in the quarter April-June, July-September, October-December and January-March prior to expiry of the following quarter viz, July-September, October-December, January-March and April-June respectively. Provided further that as on the material date: i.

The dues to the lending institution have not become bad or doubtful of recovery and/or

ii.

The property/asset of the borrower for which the housing loan was granted has not ceased and/or

iii.

The housing loan has not wholly or partly been utilised for adjustment of any debts deemed bad or doubtful of recovery, without obtaining a prior consent in this regard from the Trust.

Master Circular on Baroda Home Loan

Page 58

iv.

The borrower has paid the necessary fees and charges for the said property.

The eligible borrower shall be required to submit an undertaking to the lending institution to the effect that she/he has not availed any other housing loan covered under this scheme nor any additional risk cover has been granted to the housing loan availed by her/him by Government or by any general insurer or any institution or any other person or association of persons carrying on the business of insurance, guarantee or indemnity. 2. Eligible Activity: Activities eligible for Guarantee Cover: Activities that are eligible for Guarantee Cover are home improvement, construction, acquisition and purchase of new or second hand dwelling units involving a Housing Loan amount not exceeding `5 lakh per person. Loans given fully/partly for renovation/repairs are not eligible for the Guarantee Cover under the Scheme. 3. Housing Loans not eligible under the scheme: The following housing loans shall not be eligible for being guaranteed under the scheme: I.

Any housing loan in respect of which risks are additionally covered by Government or by any general insurer or any institution or any other person or association of persons carrying on the business of insurance, guarantee or indemnity to the extent they are so covered.

II.

Any housing loan granted to any borrower, who has availed himself of any other housing loan covered under the scheme or under the schemes mentioned in clause (I) above and where the lending institutions has invoked the guarantee provided by the Trust or under the schemes mentioned in clause (I) but has not repaid any portion of the amount due to the Trust or under the schemes mentioned in clause (I) as the case may be, by reason of any default on the part of the borrower in respect of that housing loan.

III.

Any housing loan which has been sanctioned by the lending institution against collateral security and/or third party guarantee.

IV.

Any housing loan which has been sanctioned by the lending institution with interest rate more than the prevailing rate applicable for that eligible loan category or 2% over the base-Rate of the lending institution whichever is easier.

4. Economically Weaker Section (EWS): Economically Weaker Section (EWS) means households with household income upto Rs.1,00,000/- per annum or as revised by the Ministry of Housing & Urban Poverty Allevation, Government of India, from time to time. Master Circular on Baroda Home Loan

Page 59

5. Low Income Group (LIG) category: Lower Income Group (LIG) means households with household income between Rs.1,00,001/- to Rs.2,00,000/- per annum or as fixed by the Ministry of Housing & Urban Poverty Allevation, Government of India, from time to time. 6. Low Income Housing: A Housing unit, for economically weaker and low income individuals of size upto 430 Sqft (40 Sqm) carpet area. 7. Tenure of guarantee cover: Guarantee cover shall commence from guarantee start date and shall run through the agreed tenure of the housing loan and for a maximum period of 25 years or loan termination date, whichever is earlier. 8. Amount in Default: Principal and interest amount outstanding in the account(s) of the borrower in respect of housing loan, as on the date of account becoming Non Performing Asset (NPA) or the date of lodgement of claim application whichever is lower or such of the date as may be specified by the “Credit Risk Guarantee Fund Scheme (CRGFS) for preferring any claim against the guarantee cover subject to a maximum of amount guaranteed. 9. Extent of Guarantee: Category Housing Loans by Individual Borrowers

Maximum Extent of Guarantee for Housing Loan Up to Rs 2.00 lakh or such Above Rs 2.00 lakh and up to amount as decided by the Rs 5.00 lakh or such amount as Trust from time to time decided by the Trust from time to time 90% of the amount in default 85% of the amount in default subject to the ceiling of 90% of subject to ceiling of 85% of the housing loan the sanctioned housing loan sanctioned amount. amount.

10. Guarantee Fee: (A) One time guarantee fee at the rate of 1.00% (or as specified by the Trust from time to time) of the total loan amount shall be paid upfront to the Trust within 30 days from the date of first disbursement of housing loan or 30 days from the date of Demand Advice of guarantee fee whichever is later or such date as specified by the Trust. (B) The guarantee fee shall not be charged from the beneficiary as an upfront processing fee. 11. Lock-in period: No claim can be made to the Trust for settlement within the period of 24 months after last disbursement was made to the borrower or within the period of 24 months from the date of the guarantee cover coming into force in respect of particular housing loan or two months after the completion of the house, whichever is later. Master Circular on Baroda Home Loan

Page 60

12. Invocation of Guarantee: The lending institution shall invoke the guarantee in respect of housing loan: (A) In case the loan is classified as NPA before the lock-in period expires, the guarantee can be invoked in respect of housing loan within one year of the expiry of the lock-in period or. (B) In case the loan is classified as NPA after the lock-in period expires, within one year of the loan being classified as NPA subject to the following conditions being satisfied: •

The guarantee in respect of that housing loan is in force at the time of account turning to NPA.

•

The lock-in period has elapsed.

•

Amount due and payable by the borrower to the Bank has not been paid and account is classified as NPA. Provided that the lending institution shall not make or be entitled to make any claim on the Trust in respect of the said housing loan if the loss has occurred owing to action/decision taken contrary to or in contravention of the guidelines issued by the Trust.

•

Housing loan has been recalled and recovery proceedings have been initiated under due process of law. Mere issuance of recall notice under SARFAESI Act 2002 shall not be construed as initiation of legal proceedings for the purpose of preferment of claim under CGS. Bank is required to take further action as contained in Section 13 (4) of the above Act as a secured creditor and take recourse to any one or more of the recovery measures out of the four measures indicated therein before submitting claim for first instalment of guarantee amount. In case branch is not in a position to take any of the action indicated in Section 13 (4) of the aforesaid Act, they may initiate fresh recovery proceeding under any other applicable law and seek the claim for first instalment from the Trust.

(C)Settlement of Claim: The Trust shall pay 75% of the guarantee amount on invocation of guarantee, within 60 days of applying for settlement of claim, subject to claim being in order and complete in all respects. The balance 25% of guarantee amount will be paid on conclusion of recovery proceedings by Bank. (D) In the event of default, the lending institution shall exercise its rights, if any to take over the assets of the borrowers by taking permission of the Trust and the amount realised, if any, from the sale of such assets or otherwise shall first be credited in full by the lending institution to the Trust before it claims the remaining 25 percent of the guaranteed amount. If the Trust so desires, it can Master Circular on Baroda Home Loan

Page 61

retain the asset by paying remaining 25 percent of the guaranteed amount and may give it to the next eligible borrower or as the case may be. (E) The guarantee claim received directly from the branches or offices other than respective designated Corporate office/Head office of lending institution will not be entertained. Reserve Bank of India, vide circular No: DBOD.No.BP.BP.BC-90/21.04.048/2012-13 dated 16th April 2013 has advised Risk Weights and Provisioning norms for the advances guaranteed by Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH) as under: i.

Risk Weight:

Banks may assign zero risk weight for the guaranteed portion. The balance outstanding in excess of the guaranteed portion would attract a risk-weight as appropriate to the counter-party. ii. Provisioning: In case the advance covered by CRGFTLIH guarantee becomes non-performing, no provision need be made towards the guarantee portion. The amount outstanding in excess of the guaranteed portion should be provided for as per the extant guidelines on provisioning for non-performing advances. 13. Responsibilities of Lending Institutions: Scheme stipulates for responsibilities for lending institutions which inter-alia specifies use of prudent banking judgement, conduct of account, safeguarding by obtaining primary security, close monitoring of the account, due diligence and necessary action for recovery of the account. 14. Other Operational Clarifications: •

CRGF Scheme is applicable for the eligible housing loan extended by the lending institution in Urban Area. The coverage under urban area may extend to statutory towns, urban agglomerations and planning area. Statutory towns, urban agglomerations & Planning areas, description is given in Annexure.

•

The requirement of approval of lay-out plan or building plan is a procedural requirement of lending institution. CRGF scheme deals only with loan after its sanction. The lending institutions will follow their extent provisions regarding sanction of loan.

15. Other Guidelines:

Master Circular on Baroda Home Loan

Page 62

•

Vide Gazette notification dated 7th July -13th July 2013, the Government of India has issued detailed guidelines on “Credit Risk Guarantee Fund Scheme for Low Income Housing”

16. Operational Guidelines: A. NHB is in the process of issuing User ID and password to the lending institutions thereafter, we will be submitting the application online. B. Meanwhile, we have to forward the applications under CRGFS manually for the housing loans eligible under the scheme, which are sanctioned by our Bank w.e.f. 04.03.2013 along with the specified guarantee fee. C. All branches will submit the required information to their respective Regional office on Quarterly basis. Branches will submit first report covering information w.e.f. 04.03.2013 to 31st March 2013. Thereafter quarterly information will be submitted to the Regional office latest by 10th day of following quarter. In case there is no eligible account in a particular quarter to be reported under the scheme, then Branch will submit “NIL” report to the Regional office. Report will be submitted in the format as per AnnexureD. Regional office will compile the quarterly report submitted by the branches under their jurisdiction and submit the Regional-report to the respective Zonal office latest by 20th day of following quarter in the format as per Annexure-. E. Zonal office will compile the report submitted by the Regional offices under their jurisdiction and submit the Zonal-report to the Retail Banking Department latest by 25th day of following quarter in the format as per Annexure-. Retail Banking Department will compile the report submitted by the Zonal offices and send the requisite 1% of Sanctioned amount as a guarantee fee in the account of the CRGFTLIH and submit the report to the National Housing Bank in the format as per Annexure-

Master Circular on Baroda Home Loan

Page 63

Annexure- 1

GROUP CREDIT LIFE INSURANCE FOR HOME LOAN BORROWERS Bank of Baroda is having tie-up arrangements with M/s. IndiaFirst Life Insurance Co. & M/s. Kotak Life Insurance for providing Life Insurance Cover to our Home Loan borrowers. This is an optional Scheme of Life Insurance and is at the cost of borrower which may be funded by the Bank at the time of sanction and is recoverable with the EMIs of the Loan. The Scheme is available for existing Home Loan accounts also, where flat cover/reducing cover is provided for outstanding balance in the account as on the date of obtaining cover and for remaining tenure of the loan. In such cases borrowers are required to pay the amount of premium from their own sources upfront and no finance is available from the Bank. The Insurance Companies have separate policy to cover new Home Loans (Reducing Cover) and to cover existing Home Loans (Flat cover), if the existing borrower is interested to cover his loan under reducing cover, he can avail the same under reducing cover. The salient Features of the Group Credit Life Policy offered by M/s.IndiaFirst Life Insurance Co. & M/s. Kotak Life insurance as under: •

It is an optional scheme for the benefit of Home Loan borrowers and the borrower will be given an option by the branches to choose the insurance provider between IndiaFirst Life Insurance and Kotak Life Insurance as per his choice.

•

It is a group insurance scheme, which protects against unforeseen consequences of death of borrower.

•

Family of the borrower is not required to repay the loan to the extent of claim settled amount, in case of death of the borrower.

•

Outstanding cover amount due, will be paid by insurance provider as per cover schedule.

•

Slippage of the account into NPA category due to death of the borrower can be avoided.

•

Life cover is available against payment of one time premium and amount of premium is based on the age of the borrower, amount of loan, Interest rate and tenure of the loan.

Master Circular on Baroda Home Loan

Page 64

•

Premium amount for obtaining the cover can be financed as part of loan at the request of borrower and accordingly EMI will be calculated. But in case of Home Loans guidelines regarding compliance of LTV Ratio must be strictly ensured.

•

Premium amount may be part of the Loan as per total eligibility of the borrower may be funded by the Bank at the time of sanction and is recoverable with the EMIs of the Loan.

•

In case of foreclosure of loan, certain portion of premium paid shall be refunded by the insurance provider (As per the surrender value formulae, which is given below: (a) By Kotak Mahindra: Surrender Value = 75% × Single premium × (Outstanding Cover Term/Cover Term) × (Outstanding Amount/Total Amount) - processing charges (b) By India First The borrower can continue the cover till the end of the term as mentioned in the Certificate of Insurance (COI) (OR) refund as under Decreasing Sum Assured

Single premium

Level Sum Assured

40% x Premiums Paid X Unexpired Term* X Total Term Reduced Sum Assured * Initial Sum Assured

•

Claim in the event of death, will be settled as per cover schedule and excess amount deposited over the stipulated schedule, if any, shall be refunded to the nominee of the borrower.

•

Hassle free claim settlement process.

•

Co-borrower can be covered on payment of premium by policy of M/s.IndiaFirst Only. Only principal borrower is to be covered under the scheme in case of joint accounts by policy of M/s. Kotal Life Insurance.

Master Circular on Baroda Home Loan

Page 65

DETAILED FEATURES OF THE SCHEME: This is a Single Premium reducing cover product with following featuresAge at Entry: Minimum Maximum

- 18 Years - 65 Years (Kotak Life Insurance) - 69 Years (IndiaFirst Life Insurance)

Maximum Ceasing Age: 75 years (Cover will cease once member attains this age) Age: Age is defined as the age of the member on his/her last birthday (as per English Calendar) immediately before the date of commencement of cover for that member. Term: Equal to loan term subject to Minimum 3 years (Kotak Life Insurance) Minimum 2 years (IndiaFirst Life Insurance) Life Cover: Outstanding (O/s) principal loan amount at the time of death as per the Cover Schedule provided by Insurer Any shortfall in coverage of amount due to increase in interest rate , restructuring of account or overdues in the account have to be borne by the claimants / legal heirs of the borrower only and such shortfall will not be the liability of Insurance provider. Life assured: Life assured is the loan borrower/s of who has / have been given the cover under the plan. Policy Contract: Will be in the name of BOB Documents to be obtained from the borrower: The following documents are necessarily to be obtained from the borrower and be kept safely with the Loan documents which may be required to be submitted with the death claim form in case of death of the insured borrower: 1. 2. 3. 4.

Consent cum Authorisation Form Declaration of Good Health form duly filled and signed by the insured borrower Documentary proof of Date of Birth NOC from the joint borrower/s in case of joint accounts

Role of BOB as Group Manager: The Bank will act as Group / Manager or Nodal Agency for and on behalf of members in all the matters relating to the scheme and every act done by, agreement made with and notice given to the insurance provider by the Bank / Group Manager shall be binding on the member borrowers. The group Manager / Bank shall furnish to Insurance Provider the relevant data /particulars of the members as and when required in connection with the administration of the scheme through MIS format as enclosed. This may include Health Status (DOGH), Evidence of Age and Risk Coverage, Exclusions if any and termination of assurance Cover

Master Circular on Baroda Home Loan

Page 66

Benefit to the Borrower / Family: • • • •

Shield against future liabilities on account of accidental / natural death of the borrower. The family members of borrower are relieved from financial hardship due to immediate payment of dues under the loans. Hassle free process to join the scheme. There is no immediate extra financial burden on the borrower to pay the premium as the same can be financed by the bank and EMI may be increased accordingly.

Cover Commencement: The cover shall commence from the date of premium payment with Bank of Baroda. The cover commencement date for borrowers under the medical category will commence once the underwriting decision is communicated by Insurance provider to BOB. This Date shall not be earlier than the Policy Effective Date or the actual commencement date of the loan with the Policyholder, after its approval, whichever is later. All the medical costs will be borne by Insurer. In case medical facilities are not available, Insurer shall arrange for a home visit for the client and the cost for the same will be borne by Insurance Provider. Scope of the Policy and Persons Covered: This Group Credit Life Insurance Scheme covers the loan borrowers who have attained the age of 18 years and who have been granted Home Loan by Bank of Baroda against the payment of premium. Cover will be available against the submission of Simple Declaration /Declaration of Good health (DOGH) as being done hitherto and all existing formats to be used for the purpose or to undergo medical tests and to submit a Medical Questionnaire provided by Insurance Provider depending upon amount of cover and age of the borrower. Premium – Calculation and Payment thereof: •

Premium is one time premium.

• Premium will be payable in advance for the loan amount and tenure of loan Premium shall be calculated as per premium calculator table provided by respective Insurance Provider. Issue of Certificate of Insurance: Certificate of Insurance (COI) along with the Cover Schedule (CS) shall be provided by the Insurance Provider for all members accepted in the cycle on receipt of premium.

Master Circular on Baroda Home Loan

Page 67

Certificate of Insurance (COI) is available from IndiaFirst Life Insurance also through a web link http://www.indiafirstlife.com/DAP/iflUser.htm?role=4 Claim settlement in the Event of Death: In the event of death of a customer, the claim amount shall be the outstanding cover as per cover schedule on the date of death. The concerned branch must intimate the insurer over email id about any death under the scheme within 3 months from the date of death having occurred with all supporting documents required for processing the claim. Claim Form provided with our earlier circulars referred above by the respective insurance providers shall be utilized for Car Loans and Personal Loans also.. MIS in respect of Claims shall be submitted as being done hitherto. The following documents shall be submitted along with Claim Form: a) b) c) d)

Copy of COI with CS Original DOGH. Photocopy of the self attested age proof Original death certificate issued by Municipal or other Competent Authority Last attending doctor’s certificate stating the exact cause of death (In case original death certificates cannot be provided for any reason, copy of death certificate duly attested by the branch manager shall be furnished) e) Letter from the policy holder i.e. Bank of Baroda and Declaration from nominee f) Nominee relating proof and photo id proof g) If death has occurred in a hospital, all case history papers. h) If the death is due to an accident or any other unnatural cause: • A certified copy of the FIR filed with the Police authorities. • A certified copy of the Post Mortem Report/Autopsy Report. • A certified copy of the Driving License, if death occurred while driving. The claim can be lodged at the concerned branch and the branch in turn will inform to insurer and comply with further documentation requirements as mentioned in the policy contract. Alternatively, the claims can be lodged at IFLIC’s/KLIs office at the following address, within the above mentioned time limits: INDIAFIRST LIFE INSURANCE

KOTAK LIFE INSURANCE

Group Operations IndiaFirst Life Insurance Company Ltd. 301, B wing, The Qube, Infinity Park, Dindoshi – Film City Road, Malad East, Mumbai 400097

Group Operations Kotak Mahindra Old Mutual Insurance Ltd. 7th Floor , Zone 4 Building No. 21, Infinity Park Near Nagari Nivara Hsg. Society Off, Western Express Highway Goregaon Mulund link Road,

Master Circular on Baroda Home Loan

Life

Page 68

Malad (E) Mumbai 400097 e-mail address [email protected]

e-mail address [email protected]

Exclusions in the coverage: Any claim arising as a result of the said member under the policy committing suicide (whether being a sane or insane at such time) within one year of commencement of his/her cover will be disallowed. Premature Payment of Loan: In case of prepayment of loan, certain portion of the premium for the unexpired term shall be refunded to the borrower. Information in this regard shall be submitted as being done hitherto. Procedure to be adopted at Branch Level:


This is an optional scheme for the Loan borrowers to have life insurance cover where one time premium is paid by availing loan from the Bank repayable in EMIs along with normal EMIs of the Loan.




Branch has to obtain Consent cum Authorization Form from the borrowers for obtaining the Group Insurance Cover as per draft enclosed - Annexure – II.




Branches will be required to obtain Declaration of Good Health (DOGH) or Medical Questionnaire and Medical Test as the case may be from the member borrower for cover amount as per prescribed formats.




Copy of Declaration of Good Health (DOGH) or Medical Questionnaire and Medical Test as the case may be from the borrower should be kept on record for future reference.




Branch to maintain a record of members covered under the Insurance Plan detailing Date of Start of Cover, Name of Borrower, Amount of Insurance, Date of Birth, Period, Date of expiry of Cover, Premium amount Paid and date of credit in Insurance Co.’s A/c, Transaction Reference No. All these information will be required to be provided in MIS to be submitted to Insurer by the branches through their Regional Offices in the format as per existing practices.




Branches shall deposit the Premium Recovered from the borrower to the following accounts:  A/c No. 12470200000937 of IFLIC  A/c No. 29040200000131 of KLI for Home Loan (New & Existing) A/cs

Master Circular on Baroda Home Loan

Page 69

As the case may be, on the very day of first disbursement of the loan.


Premium is to be calculated as per Premium Calculator of the respective Insurance Provider.




On joining the Scheme, a Confirmation of application shall be issued by the Collecting Branch to the borrower, duplicate of which should be preserved for future reference as being done hitherto.




In the event of death of a member, the Branch will be required to obtain a letter of information from the nominee, to fill a simple claim form being used presently and forward the same along documents as detailed under the head “Claim Settlement in case of death”.




After receipt of claim cheque by the branch, the amount of claim shall be utilized for liquidating the Loan a/c of the deceased. If the sum exceeds the outstanding loan, excess sum shall be paid by the branch to the nominee of member concerned. In case, the claim amount falls short to liquidate the loan amount, the balance amount shall be required to be liquidated by the guarantor / legal heirs of the borrower.

Clarification/assistance by Insurance Co. •

For any clarification / assistance, you may contact with IFLIC at

:

Mr. Naman Gupta - Mobile Toll Free No.

: 08080048036 : 18002095700

For escalation: Ms. Lidiya Homem

with KLI at

: :

: 09820640310

Ms.Sunanda Singh : 022 64510452/ 022-42852623 Ms.Neelam Tiwari : 022-64510452/ 022-45852623 For escalation: Mr. Sandeep Mirchandani: [email protected] Mobile : 09820154834

Master Circular on Baroda Home Loan

Page 70

Annexure- 1 (A) List of valid age proofs:


Birth Certificate




School / College Leaving Certificate, provided – it specifies Date of Birth, States that Date of Birth is extracted from School / College Records, Stamped and signed by College / School




Passport




Driving license




PAN Card




Ration Card, which specifies the Date of Issue of the Ration Card and the Date of Birth or Age of the Life to be Insured




Election ID card (also called voters ID) issued by the Election Commission of India can be accepted as valid age proof provided it was issued at least 2 years before the date of the insurance proposal.




Extract from service register in case of:  Government and semi-government employees




In case of defense/central government/ state government personnel, identity card issued respectively by the defense department /central government/ state government to their personnel showing, inter alias, the date of birth or age




Marriage certificate in the case of Roman Catholics issued by Roman Catholic Church




Domicile certificate in which the date of birth stated was proved on the strength of the school certificate or birth certificate.

Master Circular on Baroda Home Loan

Page 71

ANNEXURE – 1 (B) Draft Consent - cum - Authorization Form for Group Insurance Scheme The Chief / Sr./ Branch Manager __________________________ Dear Sir, Re: Application for membership of _________________________Scheme 1. I, Mr/Mrs. ______________________________________________________ have obtained a sanction for availing the Home Loan, hereby give my consent to become a member of the IFLIC/KLI Group Insurance Scheme, which will be administered by Bank of Baroda as Group Manager. My details are as below: Name (in capitals): Shri / Smt. / Kum ___________________________________ Date of Birth : __________________(DD/MM/YYYY) Age (as on last Birthday) as on date ___________ years Limit sanctioned Rs. ______________EMI Rs.____________ Insurance cover obtained for Rs. _____________________ (Cover to be obtained for limit sanctioned limit) Premium Amount :Rs.______________________ Rate of Interest :_________________ Loan Term:_______________ 2. I hereby authorize you to debit my Loan account No. _____________________ a sum of Rs. _____________ (Rupees____________________________ only) with your branch towards the one time single premium. * The same can be recovered from my Savings Account No. ___________ * Please include the premium amount as part of the Loan amount and fix up the Equated Monthly Installments (EMIs) accordingly and debit the premium from my loan account. Strike out which ever is not applicable. 3. I agree that in the event of my unfortunate demise during the pendency of the loan, India First Life Insurance (IFLIC) /Kotak Life Insurance (KLI) will be sole authority to consider the claim. IFLIC/KLI may settle the claim amount as per their rules to the extent of the outstanding schedule of indebtedness as on the anniversary preceding the death, in favour of the bank. These benefits will be utilized towards the liquidation of the loan amount under the loan provided by the bank. In the event of any surplus arising out of the benefits settled by Insurer after liquidating the outstanding amount, I nominate Sh./Smt./Kum___________________________________________________________ who is my____________________ (relationship) as the nominee to receive such surplus amount. 4. I agree to pay the full premium at inception even though the full loan amount will bank only in phases.

be disbursed by the

5. I agree to abide by the terms and condition of the above scheme. 6. I agree to your conveying the above particulars regarding my admission into the group insurance scheme to IFLIC/KLI. No Objection Certificate from co-borrowers (if any) :

Master Circular on Baroda Home Loan

Page 72

I/We, 1.______________________________ 2.__________________________________ do not have any objection to Sh./Smt.___________________________ a) Joining the Group Insurance Scheme mentioned above and b) One time single premium being debited to the Home Loan Account.

( ) Signature of the borrower Place: Date:

Master Circular on Baroda Home Loan

Page 73

Annexure – 2

PERSONAL ACCIDENT INSURANCE & PROPERTY INSURANCE REVISED SCHEMES w.e.f. 10.09.2012. The detailed guidelines of (I) Baroda Home Loan Group Personal Accidental Insurance Policy (Free) and (II) Baroda Home Loan Property (Standard Fire & Special Perils) Insurance Policy (at the cost of Borrower) applicable to Home Loan Borrowers, who have been sanctioned Home Loans on or after 10.09.2012, including Additional Assured Advance (AAA) are given under. I. BARODA HOME LOAN GROUP PERSONAL ACCIDENT INSURANCE POLICY. Bank has obtained a Group Personal Accident Insurance Policy with National Insurance Company Limited to cover Bank’s Home Loan borrowers (including joint/co-Borrowers also) to whom Loans have been sanctioned / disbursed on or after 10.09.2012. Thus, Bank's Home Loan borrowers, who have been sanctioned Home Loans on or after 10.09.2012, including Additional Assured Advance (AAA) to existing borrowers, are covered under the policy. The salient features of the scheme are as under: 1. Eligibility: All Home Loan Borrowers (Residents/NRIs/PIOs) who have been sanctioned Home Loans on or after 10.09.2012 are covered under a Master Group Personal Accident Policy obtained by the Bank from National Insurance Company Ltd. The policy also covers Joint / Co-Borrowers. The loans sanctioned under Additional Assured Advance (AAA) scheme on or after 10.09.2012, including “AAA” loans sanctioned to existing borrowers whose Home Loans were sanctioned before 10.09.2012 are also covered under the policy. 2. Coverage: Accidental death & Permanent Total Disability of the Borrowers as under: The Policy covers individuals for injuries arising solely and directly out of accidents leading to loss of life or Permanent Total Disablement as mentioned below:(A) Death due to accident: The amount payable will be 100% of capital sum insured, which is the amount outstanding in the loan account of the Borrower. (B)

Permanent Total Disability:

For the purpose of permanent total disability, the definition set in the policy is as under:

Master Circular on Baroda Home Loan

Page 74

(i) If such injury shall within 12 calendar months of its occurrence are the sole and direct cause of the total and irrecoverable loss of: a. Sight of both eyes or the actual loss by physical separation of two entire hands or two entire feet or one entire hand and one entire foot or of such loss of sight of one eye and such loss of one entire foot or one entire hand. The amount payable will be 100% of capital sum insured, which is the amount outstanding in loan account of the Borrower. b. Use of two hands or two feet, or loss of one hand and one foot or such loss of sight of one eye and such loss of use of one hand or one foot. The amount payable will be 100% of capital sum insured which is the amount outstanding in loan account of the borrower (ii) Apart from what is stated above, if such injury shall as a direct consequence thereof permanently, totally, and absolutely disable the borrower from engaging in any employment or occupation of any description whatsoever, the amount payable will be 100% of capital sum insured, which is the amount outstanding in loan account of the borrower. 3. Amount outstanding: The amount outstanding in the Borrower’s Home Loan account will include the Principal, interest, additional penal interest, charges and any other amount due and payable by the Borrowers as on the date of the accident leading to loss of life or permanent total disablement of the insured borrower. 4. Policy Period: 31.12.2012 to 30.12.2013 for first policy, after which the policy will be renewed by mutual agreement between both the parties year after year. Retail Banking Department has renewed the policy up to 31.12.2014. The policy shall be renewed at Corporate Centre on annual basis. It will cover all Home Loans sanctioned on or after 10.09.2012 including “AAA” loans sanctioned to existing borrowers. 5. Commencement of Risk Cover: The risk cover will incept from 31.12.2012. 6. Sum Insured: The amount insured under the Master Policy being the total amount outstanding under the loans sanctioned on or after 10.09.2012 by Bank as on the date of inception of the policy (and the time to time outstanding under the same irrespective of the amount of loan advanced) plus the projected Home Loans to be disbursed by Bank during the period of one year from the inception of the policy and the time to time outstanding under the same ( irrespective of the amount of loan advanced). In respect of renewals also sum insured shall be calculated accordingly. The sum insured in respect of an individual borrower/s shall be the total amount outstanding as on the date of accident leading to loss of life or permanent total disablement of the insured Borrowers in the loan account of each borrower irrespective of Home Loans advanced by Bank as explained above.

Master Circular on Baroda Home Loan

Page 75

In case of joint borrowers, the sum insured will be divided equally amongst the borrowers and on the death/permanent disablement of one of the joint borrowers, the claim shall be submitted for the share of the deceased borrower/permanently disabled borrower, which shall be adjusted to the respective Home loan account. 7. NICL Underwriting Office: NICL will provide the insurance cover through its office at Mumbai Divisional Office: VII, Bharat House, 104 Mumbai Samachar Marg, Fort, Mumbai 400023. 8. Claims: The claims shall be lodged by the concerned branch directly with NICL in the form and manner as mentioned below under advice to Retail Banking Department, Baroda Corporate Centre , Mumbai. In the unfortunate event of the accidental death or permanent total disability of the Borrower/s, the following documents/details (as applicable) are to be forwarded to NICL by concerned Branch: Immediate intimation is to be given to the underwriting office viz. NATIONAL INSURANCE COMPANY LIMITED, MUMBAI Divisional Office VII, BHARAT HOUSE, 104 MUMBAI SAMACHAR MARG, FORT, MUMBAI 400023 normally within thirty (30) days by the concerned Branch. The following documents are to be submitted normally within next thirty - (30) days: (In all cases where any documents are in vernacular language, a duly notarised English translation of the same must be submitted.) ~ Duly filled in claim form ( Annexure I). ~ Loan Agreement Copy ~ Loan Sanction Letter ~ Post-mortem report from the Hospital in the case of accidental death. ~ Death certificate from the Government Authorities. ~ Legible and certified FIR / Panchnama with translation in English (Certification by Police and translation in English to be attested by Notary) ~ Inquest report (In States wherever applicable) ~ In case of disability, attested full photograph of person showing the disability (attestation can be by Bank’s Branch official) ~ Doctor’s certificate confirming irrecoverable loss of eye sight / loss of limbs. ~ Permanent total & absolute disability certificate from the Hospital/Doctor/Medical Board (in respect of cases falling under Para (ii) of annexure)

Master Circular on Baroda Home Loan

Page 76

~ Certificate from concerned Branch indicating the following details:A) Name of Borrower/s B) First date of disbursement of Loan C) Computerised Loan Outstanding balances as on date of event. D) In case of joint borrowers account, pro-rata outstanding balance is to be shown/claimed. If the documents (FIR, Panchnama, Post mortem and Inquest report) are not submitted in the original, copies of the same duly verified by the Branch official to be sent. Other documents are to be submitted in original only and are to be duly attested by the Authorized Official of the Bank. Upon submission of the said documents by the claimants/heirs/borrower to Branch, the respective Branch where the borrower maintains the Home Loan Account, shall forward the same to the NATIONAL INSURANCE COMPANY LIMITED, MUMBAI DO VII, BHARAT HOUSE, 104 MUMBAI SAMACHAR MARG, FORT, MUMBAI 400023 for settlement of the claim. Subject to the documents being found in order, NICL shall pay the amounts claimed in accordance with the policy as under, directly to the said branch of Bank after receipt of all documents. NICL agrees that the Certificate issued by the concerned Branch of the Bank is based on banking system , as regards the claim amount/amount due under the loan shall be final and binding on NICL and shall not be disputed. NICL shall pay all claims directly to branch in respect of claims under the Master Policy document irrespective of any dispute/claim raised by the borrower/any other person. 9. Procedure to be adopted at Branch Level: The Bank has obtained Master Group Personal Accidental Policy for Home Loan Borrowers including joint/ co borrowers to cover Personal Accidental Death and Permanent Total Disability and its premium shall be paid by the Retail Banking Department, BCC, Mumbai on an annual basis. Branches are advised not to pay any insurance premium towards Group Personal Accident Insurance Policy at branch level. II. BARODA HOME LOAN PROPERTY (STANDARD FIRE & SPECIAL PERILS INSURANCE POLICY: The freebie for providing free property insurance was withdrawn w.e.f. 10.09.2012. However, getting insurance cover for the property against fire and other perils is necessary to protect the interest of both Borrower as well as the Bank. With a view to have a uniformity and also to have property insurance cover at uniform and reasonable premium, it has been decided to go for a tie up arrangement with National Insurance Company Ltd, Mumbai Divisional Office, who will issue property insurance policy (Standard Fire & Special Perils) at a concessional premium. Moreover our Bank will be eligible to get usual commission on the amount of premia under Bankassurance.

Master Circular on Baroda Home Loan

Page 77

The salient features of the policy are as under: 1.

Risk coverage: i. Covers “Property” i.e. the flat/house purchased with the Bank’s financial assistance and mortgaged to Bank. ii. Policy covers losses due to Fire, Lightening, Explosion/Implosion, Aircraft Damage, Riot, Strike & Malicious Damage, Impact Damage, Subsidence & Landslide including Rockslide, Bursting & / or Overflowing of water Tanks, Apparatus and Pipes, Missile testing Operations, Leakage from Automatic Sprinklers Installations, Bush Fire, Earthquake, Storm, Tempest ,Flood and Inundation. iii. Lost on account of Terrorism is excluded.

2.

3.

Sum Insured: i.

The policy to be taken for the total cost of House excluding cost of land and in case of flats, full cost of flat be considered.

ii.

Amount insured shall be the amount of loan sanctioned & disbursed for construction & finishing of house/ acquiring the flat or cost of the house (excluding cost of land)/ flat which ever is more.

Period of Policy: The period of policy will be of minimum 3 years and maximum 30 years.

4.

Premium – Calculation and payment thereof: i.

Premium will be payable in advance as per terms of the loan (for a maximum period of 30 years.) ii.

The premium rate shall be as per chart enclosed herewith (Annexure – II) Premium is exclusive of service tax.

iii.

Branches may counsel the Borrowers to prefer for payment of one time premium to cover the property insurance. Also borrower has option to obtain insurance cover from any other insurance company of his choice at his own risk.

iv.

The premium rate is subject to change as may be required / warranted by statute or revision of tariff. In that case revised chart will be provided to branches.

v.

The Branch will pay the premium amount inclusive of service tax to the debit of borrower account.

Master Circular on Baroda Home Loan

Page 78

5.

Refund of premium in case of foreclosure of Loan: No refund is allowed for mid-term cancellation of the policy.

6.

Insurance Company’s liability: i.

The liability of NICL will be as per the preamble of the policy in accordance with the terms & conditions.

ii.

Branches are advised to submit their proposal(s) to the Nodal office of NICL at following address at Mumbai. National Insurance Company Ltd. Divisional Office VII, Bharat House, 3rd Floor, 104, Mumbai Samachar Marg, Fort Mumbai - 400023

7.

Procedure to be adopted at Branch level: The responsibility of taking the insurance under the scheme is that of the Branch where the account is parked. The Branch has to adopt following procedure: i.

The Branch after executing the documents and on making first disbursement on the day of first disbursement will send the proposal in prescribed profarma (Annexure -II) to the Nodal Office of NICL at Mumbai as mentioned at point no 6 (ii) and remit the premium through RTGS / NEFT in favour of National Insurance Co. Ltd., in the following account : Name of Bank : BANK OF AMERICA Branch : KOLKATA Account No. : NATIONAL9926150000 Type of Account : CURRENT IFSC Code : BOFA0CT6206 Name of Account Holder : NATIONAL INSURANCE COMPANY LTD Address of Bank : 46-D, JAWAHARLAL NEHRU ROAD, KOLKATA- 700071 Service Tax No. : AAACN9967EST099 Pan No. : AAACN9967E

ii.

Proposal (Annexure-II) and Premium payment will be sent to the Nodal office of NICL by Regd. A.D. or if the office is locally situated, through messenger against proper acknowledgement.

iii.

The Nodal office of NICL will issue a policy and send it to concerned Branch.

iv.

If policy is not received within 10 days, Branch has to follow up with the Nodal office of NICL.

Master Circular on Baroda Home Loan

Page 79

v.

Upon receipt of policy, Branch should check the details of the policy viz. Name of the insured, Bank clause, Amount and Period of the policy etc. and record the details in insurance register as per extent guidelines.

vi.

Insurance policy is to be kept properly along with loan documents and it should be preserved till the account is liquidated.

vii.

Responsibility to take insurance cover will be that of the Branch.

viii.

In the event of any claim, the same should be submitted to the Nodal office of NICL to whom the premium was sent with claim form and required certificates within 15 days. On receipt of the claim amount, the same should be appropriated towards the loan account.

For any clarification, Branches may contact following Relationship Managers National Insurance Co. Ltd: Mr. Pradeep Chettiar, Administrative Officer

Mr. M.S. Prasana, Senior Assistant

of

Phone No.: 022 -22673692 22670419 22673772 Fax No: 022 - 22675149 E Mail : [email protected]

Please note that Home Loans sanctioned prior to 10.09.2012, will continue to be covered under “Baroda Home Loan Suraksha Beema” Scheme for coverage of risk viz Property Insurance and Personal Accident. Branches should ensure compliance of Baroda Home Loan Suraksha Beema guidelines as mentioned in Annexure - 3 However, please ensure that all Home Loans sanctioned on or after 10.09.2012 are provided with property insurance cover for Standard Fire & Special Perils as mentioned above. In case any of the Branches have not taken the property insurance cover in respect of Home Loans sanctioned on or after 10.09.2012, they should get the property insurance cover forthwith at the cost of the Borrower. The property insurance cover from National Insurance co. Ltd as mentioned above is with a view to maintain uniformity and also to give the benefit of concessional premium to our customers. However, Borrowers may opt to obtain property insurance cover from other insurance company in conformity with our Bank’s requirement.

Master Circular on Baroda Home Loan

Page 80

Annexure2(A)

Master Circular on Baroda Home Loan

Page 81

Master Circular on Baroda Home Loan

Page 82

Master Circular on Baroda Home Loan

Page 83

Annexure- 2(B) NATIONAL INSURANCE COMPANY LIMITED (A GOVT. OF INDIA UNDERTAKING) PROPOSAL FORM FOR STANDARD FIRE & SPECIAL PERILS POLICY BANK OF BARODA ( HOME LOAN BORROWERS ) NAME OF INSURED CORRESPONDENCE ADDRESS

&

HYPOTHECATION DETAILS / BANK OF BARODA BRANCH ADDRESS LOCATION ADDRESS

OF

RISK

&

OCCUPATION PERIOD OF INSURANCE FROM :________________ TO:_______________ ADD – ON COVER EARTHQUAKE YES STROM/TEMPEST/FLOOD/INNUNDATION YES (STFI)

TOTAL SUM INSURED : PREMIUM PAYMENT DETAILS

1. PREMIUM AMOUNT RS: 2. RTGS / NEFT URT NO

:

_________________

3. DATE OF REMITTANCE : 4. BOB BRANCH ADDRESS :

Master Circular on Baroda Home Loan

Page 84

Declaration by Insured I / We hereby declare that the statements made by me / us in this proposal are true to the best of my / our knowledge and belief and I / We hereby agree that this declaration shall form the basis of the contract between me / us and the ‘NATIONAL INSUANCE COMPANY LTD.’ If any additions or alterations are carried out in the risk proposed after the submission of this proposal form. Date : Place :

Signature of Proposer

PREMIUM CHART (RATE PER LAC)

Sr. No.

Loan Tenure

01 02 03 04 05 06 07 08 09 10 11 12 13

1 YEAR 3 YEAR 4 YEAR 5 YEAR 6 YEAR 7 YEAR 8 YEAR 9 YEAR 10 YEAR 15 YEAR 20 YEAR 25 YEAR 30 YEAR

Premium (with commission) 50.00 91.00 117.00 140.00 161.00 179.00 195.00 209.00 220.00 286.00 380.00 476.00 570.00

NB: Service Tax is chargeable on the above premium as per the rate applicable. Scope of Cover

As per Standard Fire & Special Perils Policy

Extensions

STFI & EQ only

Conditions:Policies to be issued to House/ Flat Owners only Policy to be issued for Minimum Period of 3 years No Refund to be allowed for Mid-term cancellations Mid term inclusion of Add On covers not to be allowed Premium to be collected in advance for the entire policy period Basis of Indemnity: Market Value i.e. Depreciated value

Master Circular on Baroda Home Loan

Page 85

ANNEXURE - 3 BARODA HOME LOAN SURAKSHA BIMA (applicable for Loans sanctioned up to 09.09.2012) (Offering FREE Property and Personal Accident insurance cover) Baroda Home Loan Suraksha Bima is operationalized w.e.f. 1st April 2005. All the Home loans sanctioned/ disbursed on or after 01.04.2005 are to be insured under the policy with National Insurance Co .Ltd. The salient features of the scheme are as under: 1.

Scope of the Policy: Free insurance will be offered to all Home Loans to individuals sanctioned under Direct Housing Finance Scheme and BOB Rural Housing Finance Scheme.

2.

Effective Date: All fresh Home Loans sanctioned and/or first disbursed on or after 01-04-2005. Additional loans i.e. Loan for Repairs, Renovation and extension of house, AAA etc. are not covered under the scheme. Risk coverage: a. Section I i. Covers “Property” i.e. the flat/house purchased with the Bank’s financial assistance and mortgaged to Bank. ii. Policy covers losses due to Fire, Lightning, Explosion/ Implosion of gas in domestic appliances, Aircraft damage, Riot, Strike, Malicious damage, Storm, Tempest, Hurricane, Tornado, Flood, Cyclone, Typhoon, Inundation, Earthquake fire & shock, Impact damage, Subsidence and Landslide including rockslide, Bursting and/ or overflowing of water Tanks, Apparatus and pipes, Missile testing operations. b. Section II (a) Personal Accident Death cover for the borrower(s) (b) The term “Accident” also covers that if borrower shall sustain bodily injury resulting solely and directly from accident caused by external and violent means such injury should within 12 months of its occurrence be the sole and direct cause of death of the borrower. (c) Permanent total disablement is covered. (d) The claim will not be payable in case of suicide, injury sustained under the influence of liquor/ drugs and breach of law with criminal intent. (e) First named borrower is covered at the cost of the Bank however, coapplicant/s can also be covered by making additional payment of 25% (in respect of each co-borrower) of the premium by the borrower.

3.

4.

Sum Insured: a. The policy has to be taken for the Home Loan sanctioned.

Master Circular on Baroda Home Loan

Page 86

b. Amount insured shall be the amount of loan sanctioned & disbursed for section 1 i.e. property and identical amount for section II. In case of Joint borrowers, the sum insured for the risk as mentioned under section II i.e. Personal accident will be divided equally amongst the borrowers. 5.

Period of Policy: The period of policy will be the repayment period of the loan including moratorium period as per sanction but in any case shall not exceed 25 years.

6.

Premium – Calculation and payment thereof: a. Premium will be payable in advance for the amount and tenure of the loan. b. The premium rate shall be as per chart enclosed herewith (Annexure – 4 B) Premium is inclusive of service tax. c. For intermediate values the premium should be worked out on the basis of premium rate as per Annexure – 4 C. d. Premium is one time and covers both the risks i.e. section I and II ( Property & Personal Accident insurance ) e. The premium rate is subject to change as may be required / warranted by statute or revision of tariff. In that case revised chart will be provided to branches. f. The branch will pay the premium amount to the debit of its P/L Insurance A/c.

7.

Refund of premium in case of foreclosure of Loan: 1. If borrower repays / liquidates the loan account before the due date, NICL will refund the premium for un expired period on pro rata basis, subject to no claim being made by the Bank in respect of the particular insured property or insured person. 2. NICL shall pay the refund of the premium amount within 15 days from the date of claim lodged by the Bank. 3. For this purpose, the branch has to make a simple request to the Insurance Company’s policy issuing office and also send original policy.

8.

Insurance Company’s liability: a. The liability of NICL will be restricted to the least of the following (for property) • amount outstanding as on the date of loss or • actual loss assessed or • sum insured whichever is the least. b. For the purpose of ‘ amount outstanding’ the amount that ought to have been outstanding on the date of loss/accident, if the repayment schedule is adhered to, has to be reckoned (excluding default amount ) c. Branches are advised to submit their proposal(s) to the Nodal office of NICL at following address at Mumbai. National Insurance Co. Ltd. DAB – IX, 6th floor, Sterling Cinema Bldg. 65, Murzaban Street, Fort, Mumbai - 400001

Master Circular on Baroda Home Loan

Page 87

9.

Procedure to be adopted at branch level: The responsibility of taking the insurance under the scheme is that of the branch where the account is parked. The branch has to adopt following procedure: a. The branch after executing the documents and on making first disbursement on the day of first disbursement will send the proposal in prescribed profarma (Annexure 4-A) along with Demand Draft/ Banker’s cheque for the amount of premium in favour of National Insurance Co. Ltd., payable at Mumbai to their Nodal office at the above address. Premium is to be calculated as per Annexure 4 - B. b. Proposal and Demand Draft/ Banker’s cheque for the premium amount will be sent to the Nodal office of NICL by Regd. A.D. or if the office is locally situated, through messenger against proper acknowledgement. c. The Nodal office of NICL will issue a policy and send it to concerned branch. d. If policy is not received within 10 days, branch has to follow up with the Nodal office of NICL e. Upon receipt of policy branch should check the details of the policy viz. Name of the insured, Bank clause, Amount and Period of the policy etc. and record the details in insurance register as per extent guidelines. f. Insurance policy is to be kept properly along with loan documents and it should be preserved till the account is liquidated. g. Responsibility to take insurance will be that of the Branch Head. h. In the event of any claim, the same should be submitted to the Nodal office of NICL to whom the premium was sent with claim form and required certificates within 15 days. On receipt of the claim amount, the same should be appropriated towards the loan account. i. After settlement of claim in respect of only one type of risk i.e. property or personal, if some balance remain outstanding in loan account the policy will continue in respect of the other risk.

Master Circular on Baroda Home Loan

Page 88

Annexure – 4 ADHERENCE OF KNOW YOUR CUSTOMER (KYC) NORMS AND PREVENTIVE VIGILANCE FOR HOME LOAN PROPOSALS: Bank is advising through comprehensive guidelines time to time in respect of KYC norms and preventive vigilance guidelines to make the operating units aware as to how frauds have taken place in various banks / branches and how to be vigilant in preventing such type of activities at branches. All set norms should be strictly complied with, without negligence while processing Home Loan proposals. The guidelines to be followed while appraising/ processing Baroda Home Loan applications are given under viz. (a) Adherence of KYC guidelines (b) Fraud preventive measures (c) Safeguards in respect of take over of Home Loan Accounts (a)

Adherence of KYC guidelines:

1.

KYC guidelines should be very meticulously and strictly complied with, which include proper verification / cross checking of information submitted by the applicants for their identity. Documents submitted for identity and proof of residence i.e. copy of ration card/ photo-identity card/ PAN card/ driving license should be properly scrutinized and also verified with the originals. Noting for having verified with the originals should be made on relative documents and kept on record.

2.

Pre-sanction inspection including visit to the place of residence and work as well as property to be purchased, must be carried out independently, preferably without giving prior information to the applicant.

3.

Independent enquiries from the employer in respect of salaried person about employment status and salary should be made. It will help in detection of cases of fabricated salary / employment certificates as well as in ascertaining the actual income of the applicant. A copy of latest salary slip should be obtained.

4.

In case of applicants other than salaried persons, the original taxpayer’s copy of challans of tax deposited is verified to ascertain genuineness of Income Tax Returns and also the assessment orders for earlier years. Home Loan proposals of the persons, who have filed their income tax returns of last three years in one lot or if there is major fluctuation in the amount of the tax deposited in the current year vis-a-vis previous year should be accorded special attention.

5.

Disbursement of Home Loan to be made by Demand draft /Bankers Cheque specially crossed to the bank and in favour of Bank / Branch, A/c-No., Name of Builders / Vendors / Suppliers along with a letter addressed to the vendor. Not to

Master Circular on Baroda Home Loan

Page 89

hand over the Demand Draft / Bankers Cheque towards disbursement to the borrower. 6.

Bank has introduced a system for outsourcing Chartered Accountants for verification of income related papers viz. IT Returns, Income Tax Challans etc. You may therefore assign the work of verification of income related papers to the authorized agency / persons in consultation with Regional Offices.

7.

Critical examination and satisfaction about the “Employment Status” of the applicant, his/her/their source, continuity, consistency and sustainability of the income is very essential. In cases, where the status of the employment as well as the employer is doubtful, the branches should discourage considering loans to such persons. Income of the applicants should be of regular, stable and verifiable nature.

8.

No middlemen should be entertained for any credit proposal.

9.

Our ASCROM Cell has devised Borrower-wise Search utility programme, which enable branches in searching the name of the borrowers, who have availed credit facilities from other branches. Therefore, if there is more than one branch at the center, the branch should ensure before considering the loan application, that applicant is not enjoying any retail loan from any other branch at the center.

10. CIBIL /EQUIFAX Credit Report/CERSAI search report in respect of applicant should be meticulously verified. We have authorized branches, all Regional Offices, Zonal Offices and allotted them user IDs to access CIBIL /EQUIFAX information on borrowers. Therefore this facility should be used by the branches to cross check borrowings from other banks. Branches not having user IDs may use this facility from nearby branch /RLF/ Regional Office. 11. Wherever applicants are not maintaining their savings account with us, the branch should obtain statement of principal account of the applicant, wherein salary is being credited. The account should be critically/ properly analyzed to ascertain conduct of the account and other existing liabilities of the applicant. 12. Credit rating in prescribed module relevant to the retail loan proposal should be carried out in each case before taking credit decision. 13. The branches should in writing ascertain from the builder / vendor/ supplier the details of his Bank, Branch and account number for the purpose of making payment on disbursement of the loan amount directly to him. It has been observed that miscreants generally opened accounts with small co-operative banks for fraudulent encashment of the banker’s cheques. Therefore, the branch managers may, over telephone, confirm the antecedents of the builders and gather information about status and period of account relationship etc. 14. The Bankers Cheque / Demand Drafts should be issued in favour of Bank Branch A/c No. – Name of the builder/ vendor / supplier and should be directly handed

Master Circular on Baroda Home Loan

Page 90

over to him. However, a request in writing should be obtained from the borrower before making payment to the builder / vendor / supplier. 15. Search Report / legal opinion obtained about immovable property from Bank’s approved advocate should be exhaustive and complete, containing all vital points. The Branch officials should carefully study the report received from the advocate and any point affecting bank’s interest may be probed in to. Equitable mortgage of immovable property should be based on original title deeds only. All previous chain of title documents and other papers suggested by bank’s advocate should be obtained while creating equitable mortgage on the property proposed as security. 16. Besides, valuation report submitted by Govt. / Bank’s Approved Valuer in respect of immovable property, the Processing Officer or Asset Inspecting Officer or Sanctioning Authority should verify the boundaries of flat/plot/house as per the previous title deeds and assess the value of the property independently on the basis of prevailing market rates and record the same in the file. 17. Proposals for financing a house / flat developed by the builders not having good reputation in the local market / whose names are appearing in the negative list should not be considered. If the builder is a private limited or a public limited company, report from the office of Registrar of Companies should be obtained for ensuring that the entire property, including the flat proposed to be financed, is not charged in favour of any bank / financial institution / other creditor for finance availed by the company. 18. Each disbursement, wherever need to be made in stages, should be backed by site / spot inspection and relative inspection report should be kept on record. 19. Post-sanction inspection after final disbursement should be carried out to ensure that borrower has taken possession of the house / flat besides verification of end use of funds. It is also to be ensured that the construction has been carried out as per approved plan and there is no misutilization of funds. The above safeguard needs to be taken care by the branches while considering any Home Loan proposal. (b) Fraud Preventive Measures: Bank has come across some instances, where borrowers have either defrauded the Bank or some miscreants attempted to commit frauds. In order to save our branches/Bank from such attempt of frauds, branches are requested to follow the guidelines meticulously while considering Home Loan proposals:It is observed that frauds are committed at the following two stages. (a) Pre-Sanction, (b) Post-sanction.

Master Circular on Baroda Home Loan

Page 91

The risk of being cheated or defrauded is remote if proper care is exercised in these two stages of financing housing Loans in contrast to other advances, where frauds can be committed even after disbursement of the loan due to poor monitoring of the accounts. (i)

Pre Sanction Stage: Failure to follow KYC (Know your Customer) norms and the requirement of presanction inspection. Failure to identify fictitious accounts. Sanction of higher loan amount on the basis of fake/forged income proof. Inflated valuation of land and building.

i.

Post Sanction Stage : -

Documentation Related: due to forged title deeds, photo copy of title deeds, several original copies of same title deeds etc.

-

Disbursement Related: done by builder by selling same flat to different people, loans availed by builder in the name of other person/s and money used by him for his project. Borrower en-cashing the loan disbursement cheque / Pay order / D.D by opening account in the name of builder particularly with Cooperative banks.

-

Based on the experience of various Banks, cases of frauds, modus operandi and suggested preventive measures are narrated below: 1. Fabrication of Income documents like IT return, Salary Slip, Balance sheet etc: • • • • •

Personal interview of borrower and visit to site. Personal verification of original salary slips and attendance register with the employer. Comparing salary amount with the bank statement Cross verification of balance sheet with bank statement Verifying photo copies of IT returns with the original bearing acknowledgement of IT department

2. Other income of the applicants like agriculture, tuition income, Income of nonworking spouse purportedly running Hobby, cooking classes, beauty parlors, and Computer job work were clubbed to inflate income and secure higher loan amount. It is committed generally by well dressed/well educated, high-flying borrowers who utilize the services of Chartered Accountants in fabricating income tax returns and related documents.

Master Circular on Baroda Home Loan

Page 92

• •

Agriculture income can only be considered if it is supported by land record and income is reported in income tax return though not taxed. Status of business must be verified before accepting proof of income from such business/profession.

3. Loan amount disbursed by way of Pay Order/Demand Draft encashed by third party/agent. Disbursed amount Pay Order/ Demand Draft are collected by 3rd party/Agent from the borrower’s Bank and deposited in fictitious account opened for this purpose and amounts are withdrawn from such bogus accounts. •

•

•

Account Payee crossed PO/DD should be issued in the name of the builder/promoter as the case may be with the bank account number mentioned on it. A rubber stamp should be affixed on the reverse of the PO/DD stating, “collecting banker should exercise utmost caution while collecting this instrument especially in the case of a newly opened account”. PO/DD should not be handed over to the borrower /agent/third party. Bank’s official can be sent for delivery of the instrument to the builder/seller of the property at the registered address mentioned in the title deeds.

4. Title deeds/ Stamped documents forged by borrower/ builder. Coloured photo copies of various documents are produced including encumbrance certificate, fake stamp paper etc. which are difficult to distinguish from the original one. •

•

The title deeds should be handed over to advocate only by bank official and all his queries should be routed through bank only. The fee will also be paid through bank. Bank officers should verify genuineness of the documents independently through their own advocates/ solicitors. Search report of the property should be conducted by the advocate properly on the basis of original documents including registry pending for entry in the records of sub registrar.

5. Multiple Financing: The miscreants with intent to play fraud with Bank connive with the Chairman/secretaries of housing co-operative societies and borrowers, prepare a number of original sets of documents in respect of single flat, and avail loans from several banks using those fake but apparently original sets of documents. In the process, the miscreants get the owner’s clear and marketable title to the property certified from lawyers and in turn create equitable mortgage by depositing the fake title deeds. •

Tracking and sharing information among banks and housing finance companies about black listed builders through market intelligence.

Master Circular on Baroda Home Loan

Page 93

• • •

•

•

Relevant testimonials like Bye-Laws, Firm registration Certificate, colonizer license of builders should be verified with appropriate issuing authority. Banks should insist on original title deeds of the landed property on which structure (Proposed project) is built for verification. In case of flats, Banks should insist on registration of undivided share of land before releasing 1st installment of loan. In that case a ‘Provisional’ sanction letter may be issued to the borrower in this regard provided all other terms and conditions are complied with. In case of purchase of property from government agency/other agency on their behalf co-operative society etc. allotment letter of such agency issued in favour of buyer should be obtained. Registration receipt issued by Registrar of assurances should bear hypothecation clause.

6. Cancellation of booking of flats/ property: After availing the 1st installment of loan amount, the booking is cancelled by the borrower in collusion with builder/promoter and the borrower directly takes the refund from the builder/promoter. • •

•

Credit rating of Builders by CRISIL should be mandatory. Bank should check past track record, financial viability project execution capacity clear titles and customer satisfaction of previous projects and technical competence of the builders. Bank should obtain tripartite agreement (Registered) with builders, bank and borrower stating that if booking is cancelled, the money will be refunded to the bank only.

7. Sale of property by borrower without clearing existing loan: Property is sold through duplicate/fake title deeds even though the legal title is with the bank. • •

Internal due diligence plays vital role to prevent this type of frauds. Banks to represent to RBI/ Government of India to enact legislation for noting bank’s lien (Mortgage) in the Books of Municipality, Tax Assessment registers for the Houses, as is done in case of Motor Vehicles.

8. Misrepresentation of end use of loan. Loan is taken for residential Housing purpose but commercial property is constructed. •

In addition to verification by architect/engineer as per system, bank official to verify end use of funds at each stage of disbursement of loan.

Master Circular on Baroda Home Loan

Page 94

9. Sale of property by builder without clearing dues of financing bank/FIs. Builders sold constructed / semi constructed houses but did not pay the dues of banks/FI raised for construction of the building. • • •

Construction /funding of loan should be closely monitored. Original title documents should be called for appraisal at the time of sanction of loan. Bank to keep an eye on builder and seek information regarding sale of flats/houses on regular basis. Bank should obtain an affidavit from the builder stating that no financial assistance has been received against the dwelling units under construction and no plots/flats are mortgaged in any Bank/FIs.

(b) Safeguards in respect of take over of Home Loan Accounts. 1. Accounts should be taken over in consideration / possibility of larger business interests / valuable connections. 2. The prospective borrower should handover a Power of Attorney in favour of Bank of Baroda alongwith a letter addressed to the Bank / HFCs from where finance has been availed authorizing them to deliver the title deeds and all the collateral securities charged to them, directly to our bank branch upon receipt of the loan amount. 3. The institution should confirm the above to our branch and further that they are holding an equitable mortgage over the property. 4. Accounts with the existing lenders should be under the category of Standard Assets. 5. Repayment may be fixed, keeping in view our Bank’s guidelines in respect of income and repaying capacity of the applicant. However, Additional Assured Advance (AAA) may be considered as per norms. 6. All other collaterals charged to the previous institution from whom the loan is being taken over should also be made available as security to our Bank. 7. There should not have been any reschedulement / restructuring in the account during last two years. 8.

Takeover accounts are to be rated as per the applicable scoring model subject to minimum grade as per the scoring model.

9.

The disbursement of the loan should be made directly to the institution and their receipt to be kept along with the loan documents. Under no circumstances Banker Cheque/Demand Draft be delivered to the Borrower.

Master Circular on Baroda Home Loan

Page 95

10. In some of the States the equitable mortgage, after the same is being created, is also required to be registered before the Sub-registrar’s office as per the amendments brought in to Registration Act by the respective states. In such cases after obtaining the title documents back from the Bank/HFCs from where the account is being taken over, Branches must ensure that the borrower/mortgagor has discharged/released the charge created over the properties by the previous Bank/HFCs by executing/registering necessary documents with registering authorities before creation of fresh equitable mortgage favoring our Bank and the equitable mortgage created in our Bank’s favor is also registered. The above is a suggestive but not exhaustive list of safeguard points to be taken by the branches while considering any Retail Loan proposal. Bank is also sharing the modus operandi of the new cases of frauds coming into light vide circulars from time to time. Branches should take care of the suggestions/ guidelines mentioned in such circulars to thwart any attempt of defrauding the Bank.

Master Circular on Baroda Home Loan

Page 96

Annexure- 5 RETAIL RATING MODEL HOME LOAN MODEL (RATING PARAMETERS) Sl.No Variable 1

2

3

4

5

6

7

8

Borrower Age (in years) Range a) 0-18 b) above 18- upto 25 c) above 25- upto 40 d) above 40- uto 55 e) >55 Educational Qualification a) Doctorate / Post Graduate b) Graduate c) Diploma d) Higher Secondary e) < Higher Secondary Marital Status a) Married b) Single Mobility of Individual - Location a) Has not changed location in past 3 years b) Changed location once in past 3 years Changed location more than once in past 3 c) years Number of dependents a) Zero b) One c) Two d) More than two Number of joint applicants a) 0 b) 1 c) 2 or more Relationship with Bank a) All banking done through Bank b) Good track record of Banking with Bank c) Short term relationship d) No existing relationship Employer Type a) Govt/Public sector b) MNC c) Listed private sector companies d) Professional

Master Circular on Baroda Home Loan

Scores

Explanation variable

of

MAX MIN

5

0

5

0

12 3

12

3

10 5

10

0

8 7 6 0

8

0

3 7 9

9

0

14 12 3 0

14

0

9 9 9 4

9

0

0 1 4 5 0 5 3 2 1 0

0

Page 97

e) Unlisted private companies f) Own business g) Self Employed

9

10

Pensioners drawing pension through Bank of h) Baroda i) Pensioner drawing pension from Others j) Others Designation a) Senior Management b) Middle Management or Self - Employed c) Junior/ Clerical / Pensioners Stability of Income Income has been steadily increasing over a) the last 3 years Income has been almost the same over the b) last 3 years Income has been unstable over the last 3 c) years

11

12

13

14

Income has been steadily decreasing over d) the last 3 years Proof of income of borrower a) Income tax returns b) Salary slip c) Letterhead d) No proof Marketability of property (Marketability will increase if significant developments are happening in near by areas, also it will depend on the condition of the property etc.) a) Very Good b) Good c) Fair d) Poor Housing loan purpose category a) Construction (New) b) Purchase (Old construction) c) Improvement Foreclosure (for borrowers who borrow in d) order to repay a previous Home loan) e) Loan given under the rural housing scheme Loan to Value Ratio Range a) <0.5 b) 0.5-0.7 c) above 0.7- upto 0.9 d) >0.9

Master Circular on Baroda Home Loan

8 2 2 0 0 0 5 3 0

5

0

12

12

-5

3 3 1 0

3

0

15 10 5 -8

15

-8

4 0 8

8

0

18

0

7 0 -5

8 2

18 12 7 0

Page 98

15

16

17

18

Net worth to Loan Ratio Range a) 0 - 0.5 b) above 0.5 - upto .75 c) above 0.75 - upto 1.0 d) above 1.0- upto 1.5 e) above 1.5- upto 2.5 f) >2.5 Net annual income of the borrower (in Rs) Range a) <100000 b) 100000 - 200000 c) above 200000 - upto 350000 d) above 350000 - upto 600000 > 600000 Fixed Obligations to Income Ratio a) 0 - 0.3 b) above 0.3 - upto 0.5 c) above 0.5 - upto 0.7 d) > 0.7 Guarantor's Net worth to Loan Ratio a) 0 to 0.5 b) above 0.5- upto 1.00 c) >1.00

Sum

0 1 2 3 4 5

5

0

-5 2 4 6 10

10

-5

12 8 4 0

12

0

0 4 8

8

0

168

-19

Grade and cut-off score for Model No.1: Home Loan Score

Grade

0-85

HL-10

86-95

HL-9

96-105

HL-8

106-110

HL-7

111-115

HL-6

116-120

HL-5

121-125

HL-4

126-130

HL-3

131-135

HL-2

136-168

HL-1

Cut-off score is 96 and investment grade is HL-8

Master Circular on Baroda Home Loan

Page 99

Annexure- 6

ONLINE HOME LOAN APPLICATIONS In our endeavor to provide more and more value added propositions through Internet to our customers / proposed Home Loan aspirants, Online Home Loan application module was launched on 20.07.2008. This will enable us to speed-up the credit decisions and facilitate timely financial assistance under Home loan Scheme. Salient features of the system are as under:  A link has been provided at Home Page of our Bank’s website for submission of online application for Home Loan by the applicants. An applicant shall provide all basic information online, necessary for appraising / processing his / her home loan, in soft form.  On submission of the application, the system shall generate a registration number immediately, which shall be a reference number for any future correspondence by the applicant.  The system will forward the application received from the applicant to concerned Retail Loan Factory (RLF) for the branches falling within the operational area of RLF or otherwise the branch opted by him with a link to concerned Regional Office.  Applicant shall be able to know the status of his / her application and be able to download the in-principle sanction from the system, access to which would be available through the registration number generated by the system at the time of submission of the application.  Tracker facility of online application has been introduced in our website for the online applicants to know the status of his/her application. Accessing the application module :  The online Home Loan application module can be access through the following URLs https://www.bankofbaroda.com/ohla2009/ (in Finacle PCs) https://www.bankofbaroda.co.in/ohla2009/ (in other internet PCs)  The authorised users at Branch/RLF can process and monitor the application by using this module. Role of Branches/RLFs:  The Branch/RLF need to process and give in-principle sanction/rejection with in 48- hours.  Online Home Loan application applied for those cities, where our Retail Loan Factory is situated, will be looked after by concerned RLF.

Master Circular on Baroda Home Loan

Page 100

 Open the modules on daily basis and check whether any application is pending for Branch.  User has to type the user id and pass word for accessing the application module.  User-ID and Password for branches have been advised to concerned Regional Offices.  In case, error in pass-word or user-id is shown – send a mail to [email protected] mentioning your user-id and Branch Alpha for resetting pass-word. The applications will be processed as under: • • • •

•

• •

Open the modules on daily basis and check whether any application is pending for Branch. Branch should attend and change the status of application with in 48 hours of application. There is no need to call the applicant for any discussion for In-Principle sanction / sanction / rejection After viewing the application, take a printout and if all information is provided by applicant, change the status to “In-principal sanction” or “Rejected” as per decision taken by the branch. If In-Principle Sanction is accorded, branches should mention the time schedule (like 10-15 days) for submission of required papers / documents for further processing, so that the application may be disposed off within a reasonable timeframe. Change the status on every stage (In-Principle sanction / awaiting documents / final sanction / disbursed) All sanctioned cases should be disbursed after obtaining all relevant documents in original to cross verify the information submitted in online application, completing proper inspection, documentation etc. as per extant guidelines.

At Regional Office Level:  Ensure that the branches/RLFs under their jurisdiction are attending the Online Home Loan application module on daily basis and conveying the decision within the stipulated time frame i.e. within 48 hours of from its submission.  Provide all assistance to branches, In case of any problem in logging in, changing of status etc.  Monitor timely change of status at every stage (In-Principle sanction / awaiting documents / final sanction / disbursed) by branches / RLFs.  No application should escalate to BCC. • •

The Corporate office will be able to track any application at any point of time to check unwarranted delays on the part of RLFs/Branches/Regional Offices. User manual is available in soft form in the system. The users can access the Manual through ‘Help’ link available in the application module.

Master Circular on Baroda Home Loan

Page 101

Annexure-7

APPROVAL OF BUILDERS AND THEIR HOUSING PROJECTS Flat culture is developing very fast and there is huge scope of lending for Home Loans in multi storied housing project. This culture is now also developing at small centres i.e. Tier II cities in addition to Metro and big Urban centres. Ample opportunities for lending under Home Loans are available which shall ultimately augment our Home Loan Portfolio as well as Retail Loan Book of the Bank. There may be two type of projects : I.

Where construction has been completed and the flat are ready for sale. In such cases, the flat are outrightly purchased against full payment of cost of flat.

II.

But in other case, where the construction is yet to start or construction is in process, in such cases the possession is generally available after a period of one year to 3 years. Till that period, there is no security and the mortgage is created only after getting possession by the borrower whereas the builders demand payment in installments from the purchasers.

In case of IInd type of projects, more prudence is required while financing for flats which are yet to come in existence. The promoters of such projects may be:(a)

Big corporate houses/ established business groups having good track records in the field of housing projects and enjoying good market reputation as genuine and credible builders.

(b)

In the other category, the promoters /builders may be new entrants to this field, which can be further classified under two categories, (i) the one who may be having good experience of housing projects developments and (ii) the other one who may be entirely new entrants having no experience in this line.

Different approach is required to be adopted by our operating units with these type of projects/builders. Our Operating units must endeavour for approval of housing projects falling under the categories a and b (i), however in case of housing projects being developed by new entrant promoters i.e. b (ii) can also be taken into our fold by approval of such projects, if the project is financed by our bank, as, the credential of promoters / project are duly verified while sanctioning the project loan to them by the competent authority.

Master Circular on Baroda Home Loan

Page 102

For generating good volume of quality business under home loans through financing of flats in housing projects, approval of projects /builders is the most important initiative to be adopted by the Bank. Approval of Builder/Developer/Promoter: For the purpose of approval of Housing projects / Builders, the RLFs / Branches, in the city are required to visit the projects on regular basis, verify the credentials and to recommend the names of reputed/credible builders/developers/ promoters and their projects to their respective Regional Authorities, who would be according approval to those conforming to the criteria. However, in Metro cities with more than one Region, since some of the builders/developers may be common for the entire city across all Regions / branches, the approval may be accorded by the respective Zonal Authorities. For developing a healthy portfolio of housing finance it is necessary that the builders/developers/promoters of properties have good track record & enjoy good market reputation as genuine & credible builders. In order to ensure this, Regions have been advised to prepare a negative list of builders and advise the branches to exercise due care and caution while entertaining the proposals relating to house property developed by such individuals and firms. It will be appreciated that along with the approval of builder/developer/promoters, if the projects/properties developed by them are also approved after due diligence, it will help branches in faster decision making and at the same time avoid the chances of perpetration of frauds and irregularities. Zonal Heads have been authorized for approval of projects in home loans after due diligence where more than one Region exists in that city and at other places the Regional Head is authorized for approval of project. In the event the builder is a private limited or a public limited company, report from the office of Registrar of Companies should also be obtained to ascertain whether the entire property is also subject to mortgage or any charge in favour of any financial institution or bank or any other creditor. The parameters for approval of Builders / Developers/ Promoters and their projects for the purpose of Home Loans are given in Annexure –7 (B) & 7 (C). In case the housing project is financed by our bank, a different view needs to be taken. Now Bank has decided to accord the status of approved Builder and their Housing Project as approved for sanctioning of Home Loans for purchase of flats, while granting credit facilities to such Builders for Housing Projects. Revised guidelines in respect of approval of builders and their Housing Projects where our Bank granting credit facilities to such builders for Housing Projects are given in Annexure- 7 (A). In such cases, possibilities may be explored to impress upon the

Master Circular on Baroda Home Loan

Page 103

builder to provide maximum number of leads to our branches for financing for purchase of flats in their project. Benefits to Builder by approval of their project: By approval of projects, the builders gets a preferred financier like bank of Baroda for financing their flats to the prospective purchasers. Some other offers like concession in interest and processing charges etc. may be passed on in case, good volume of business is anticipated. Benefit to purchaser in purchasing flats in approved project Purchase gets a financier like Bank of Baroda for financing him /them for purchasing flats in the approved project and if any concessions are agreed upon with the builder, the same may be passed on to the purchaser. He may be saved from getting additional burden of getting Valuation Reports /Legal Opinion on merits of the case. Benefit to Bank by approving housing projects By approval of Housing projects /Builder, Bank get the ample opportunities for getting good number of leads and high rate of penetration to convert into business. In case of approved projects, chances of delinquencies and perpetration of frauds are also eliminated to a large extent.

Master Circular on Baroda Home Loan

Page 104

Annexure- 7 (a) Approval of Builders and their Housing Projects, where our Bank granting Credit facilities to such Builders for Housing Projects. Hitherto, Bank is extending various credit facilities to reputed builders/developers/ promoters and their projects, which were sanctioned by SME / Mid Corporate/ Wholesale Banking Department at BCC or Zonal/ Regional authorities. While processing the credit proposal of Builders for a Housing Project, necessary due diligence about the promoters, their market reports, their past experience with their existing bankers and various permissions/approvals from the Development authorities etc are collected and verified/satisfied by the concerned authorities before sanctioning of the credit facilities. Also for generating good volume of quality business under Home Loans through financing of flats in housing projects, approval of projects/builders is required by Bank which is done separately by the Zonal / Regional Heads. As per extant guidelines, Branches/RLFs in cities and large towns will recommend the names of reputed/credible builders/developers/ promoters and their projects to their respective Regional Authorities, who would be according approval to those conforming to the criteria. However, in metro cities, since some of the builders/developers may be common for the entire city across all regions/branches, the approval may be accorded by the respective Zonal Authorities. On the basis of suggestions received from our Zonal / Regional Offices, a note was approved by Chairman & Managing Director & Executive Director for authorizing the discontinuation of the existing guidelines for approval of Builders & their Housing Projects for sanctioning Home Loans for purchase of flats, in cases of Builders & their Housing Projects are extended credit facilities for the said Housing Projects by our Bank. Keeping in view the above facts, accord the status of “Approved Builder and their Housing Project as approved for sanctioning of Home Loans for purchase of flats, while granting credit facilities to such Builders for Housing Projects.” Also a suitable clause of Approved Housing Project in sanction letter of such Builders be incorporated, while conveying terms & conditions of the sanction to such Builders. The above guidelines which have been conveyed vide our letter No.BCC:RB:105/1437 dated 18.07.2013 to all Zones & Regions shall be applicable to fresh sanctions of credit facilities to Builder. However, Zones and Regions should scan the existing cases where credit facilities have already been extended to Builders and sanctioned for their Housing Projects by our Bank prior to the above mentioned circular and may approve such projects for considering financing the housing units/flats.

Master Circular on Baroda Home Loan

Page 105

ANNEXURE- 7 (b) Parameters for approval of Builders / Developers/ Promoters and their projects for the purpose of Home Loans

S. No.

Parameters

1

Any one of the promoters must be established for at least last -3- years in the field of housing projects. (Projects promoted by big corporates and established business groups be excluded from this criteria, even if they are launching housing project for the first time they may be considered) Condition of three years average annual turnover of minimum Rs. 5 crores in metros and Rs. 2.50 crores for other cities for builders not to be insisted upon. However information revealed during discussions with the promoters and from market reports, if documentary proof is not available, may be relied upon. Must have completed minimum three projects & sold out majority of units in that project. (The information revealed during discussions with the promoters may be relied upon), However, this will not be applicable for Projects promoted by big corporates and established business groups. If banking with us, the conduct of the account should be satisfactory, with no default if financed by us. In case of banking with other banks, satisfactory credit report from bank may not be insisted upon, however, Market reputation should not be adverse. Net worth should not be in negative.

2.

3

4 5 6. 7 8 10

The names of the promoters, i.e. Directors / Partners / Proprietor are not included in defaulters list of Reserve Bank of India / our Bank. No cases relating to projects should be pending in any court, however, information given by promoters, during discussions may be relied upon. In respect of completed projects:

11

Information given by promoters, a) Time over run is not during discussions and market exceeded 50% report may be relied upon. b) Cost escalation should not be more than 15%. Builders to Provide copies of land development and construction agreement.

Master Circular on Baroda Home Loan

Page 106

ANNEXURE- 7(c) For Approval of Projects Information to be obtained from Builders / Developers/Promoters for approval of the Projects: 1.

Name of the Builder & Project:

2

Address:

Tel No. Office Residence E-mail: Mobile:

3

Constitution

4

Names of Directors Proprietor Date of Incorporation

5 7

8

/

Partners

/

Banking Arrangements with (Bank & Branch Name,A/c. No/. if available) Project on Hand A B C D E

6

Name of the Project Location Project Cost & construction time Name of Financer, if any, Number of floors and FSI approved F No. of Flats/ Houses under construction G Constructions started / to be started on H Stage of construction I Expected date of completion of project. No. of flats / houses constructed

7

Flats / houses sold till date

8

Time over run and Escalation in cost of construction, if any,

9

Details of Disputes, if any, pending in any court

Master Circular on Baroda Home Loan

Page 107

10

Name of Other Banks / HFCs who approved the project for housing finance

11

12

Whether plan approval obtained from concerned authority, if so details thereof Whether Title of the property under development plan is clear, marketable and free from any encumbrances.

Master Circular on Baroda Home Loan

Page 108

Annexure 7 (d) Power to approve deviation to accept ‘Unregistered Agreement to Sell’ in approved and unapproved Housing Projects. Previously the Zonal Heads were authorized to consider deviation to accept ‘Unregistered Agreement to Sell’ in case of housing projects being developed by builders/developers having satisfactory dealings with our Bank with good credentials/track record and who should have been approved by the Region/Zone. On case to case basis, Zone were deciding individual case of projects/builders for accepting ‘Unregistered Agreement to Sell’ by recording reasons to their satisfaction and to also consider request for disbursement of Home Loan on the basis of terms of agreement to sell. Our Executive Director on 05.06.2013 has agreed to authorize all Regional Heads to consider deviation to accept ‘Unregistered Agreement to sell in approved Housing Projects. Now, all Regional Heads are authorized to consider deviation to accept ‘Unregistered Agreement’ to sell in APPROVED Housing Projects under construction linked plan on case to case basis and merit of the case. However, Zonal Heads are authorized to consider deviation to accept ‘Unregistered Agreement’ to sell in UNAPPROVED Housing Projects on selective basis in case of reputed builders and only after ascertaining credibility / viability of the project, as also after taking abundant precaution in documentation aspects, including taking Tripartite Agreement containing Indemnity Clause. (Clarified vide Circular No.BCC:BR:106/22 dated 21.01.2014 regarding revision in deviation powers of Retail Loans.) While accepting unregistered agreement to sell, following additional safeguards, documents/ precautions should be taken to mitigate the inherent risk and conveyance deed should be obtained and mortgage must be created after completion of construction. •

Original Agreement to sell on Rs.100/- stamp paper or as per stamp duty of the state.

•

Tripartite agreement between Bank, Borrower and the Builder on Rs.100/- stamp paper or as per stamp duty of the state.

•

Undertaking from the Builder / Developer to handover Conveyance Deed directly to the Bank for Creation of Equitable Mortgage.

•

Copy of the map/ plan of the building duly approved by the appropriate authority.

•

NOC from builder for creating mortgage and noting of Bank’s lien if the building is under construction. Banks name to be recorded as nominee in the books of the builder.

Master Circular on Baroda Home Loan

Page 109

•

Share Certificate, if society is formed, duly supported with NOC from the society for creation of mortgage and noting of our lien in society’s record.

•

Undertaking by borrower to create Equitable Mortgage.

•

Undertaking from the borrower not to borrow from any other source against the concerned property.

•

NOC from the financing Bank / NBFC, if the builder has obtained Project Finance.

•

Draft of agreement to sell and tripartite agreement should be vetted by local Advocate / Law Officer posted at Zonal Offices.

•

Disbursements to be made only on the basis of stages of completion of the property being financed. [Please ensure not to consider/sanction Home Loan proposals of builders where disbursements are not linked to various stages of construction of housing project as per RBI guidelines given as Annexure-7 (e)].

Master Circular on Baroda Home Loan

Page 110

Annexure- 7 (e) Upfront disbursal of Housing Loans- RBI guidelines Reserve Bank of India vide their Circular No.RBI/2013-14/217 DBOD.BP.BC.No. 51/08.12.012/2013-14 dated 03.09.2013 has advised regarding Innovative Housing Loan Products- Upfront disbursal of housing loans, as under: 1. It has been observed that some banks have introduced certain innovative Housing Loan Schemes in association with developers/builders, e.g. upfront disbursal of sanctioned individual housing loans to the builders without linking the disbursals to various stages of construction of housing project, interest/EMI on the housing loan availed of by the individual borrower being serviced by the builders during the construction period/specified period, etc. This might include signing of tripartite agreements between the bank, the builder and the buyer of the housing unit. These loan products are popularly known by various names like 80:20, 75:25 Schemes. (Presently our Bank does not have such Schemes) 2. Such housing loan products are likely to expose the banks as well as their home loan borrowers to additional risks e.g. in case of disputes between individual borrowers and developers/builders, default/delayed payment of interest/EMI by the developer/builder during the agreed period on behalf of the borrower, non completion of the project on time, etc. Further, any delayed payments by developers/builders on behalf of individual borrowers to banks may lead to lower credit rating/scoring of such borrowers by credit information companies (CICs) as information about servicing of loans gets passed on to the CICs on a regular basis. In cases where bank loans are also disbursed upfront on behalf of their individual borrowers in a lump-sum to builders/developers without any linkage to stages of construction, banks run disproportionately higher exposures with concomitant risks of diversion of funds. 3. In view of the higher risks associated with such lump-sum disbursal of sanctioned housing loans and customer suitability issues, banks are advised that disbursal of housing loans sanctioned to individuals should be closely linked to the stages of construction of the housing project/houses and upfront disbursal should not be made in cases of incomplete/ under-construction/ green field housing projects. In view of above, we have advised all Branches /RLFs vide Circular No. BCC:BR:105/392 dated 05.09.2013, not to consider/sanction such Home Loan proposals of builders where disbursements are not linked to various stages of construction of housing project.

Master Circular on Baroda Home Loan

Page 111

Accordingly, Bank has decided to withdraw the authority given to Zonal Heads vide letter No. BCC:RB:99/3566 dated 28.12.2007 to consider disbursement of Home Loans on the basis of disbursement schedule mentioned in the Agreement to sell, as against guidelines to make disbursement only on the basis of stages of completion of the property being financed, with immediate effect from 10.09.2013. [Please refer Annexure 7(f) below]

Master Circular on Baroda Home Loan

Page 112

Annexure- 7 (f) Disbursement of Home Loan on the basis of Agreement to Sell. As per the existing guidelines of Baroda Home Loan, disbursements/ payments to Builders to be done only on the basis of stages of completion of the property being financed. However, Zonal Heads were authorized to consider deviation to accept disbursements on the basis of ‘Agreement to Sell’ on case to case basis or project specific basis only where the projects / builders are approved as per extant guidelines and the projects are developed by the reputed builders. Now, Reserve Bank of India vide their Circular No.RBI/2013-14/217 DBOD.BP. BC.No.51/08.12.012/2013-14 dated 03.09.2013 has advised that [Pl. refer Annexure 7(e) above]: In view of the higher risks associated with such lump-sum disbursal of sanctioned housing loans and customer suitability issues, banks are advised that disbursal of housing loans sanctioned to individuals should be closely linked to the stages of construction of the housing project/houses and upfront disbursal should not be made in cases of incomplete/ under-construction/ green field housing projects. In view of above, Branches/RLFs should not consider/sanction such Home Loan proposals to builders where disbursements are not linked to various stages of construction of housing project which has been conveyed vide Circular No.BCC:BR:105/392 dt 05.09.2013. The administrative powers vested with Zonal Heads in terms of letter No.BCC:RB:99/3566 dated 28.12.2007 to consider requests for disbursement of Home Loans on the basis of terms of Agreement to Sell as against extant guidelines to make disbursement only on the basis stages of completion of the property being financed has been withdrawn from 10.09.2013.

Master Circular on Baroda Home Loan

Page 113

Annexure – 8 ISSUANCE OF FREE CREDIT CARDS TO HOME LOAN BORROWERS With a view to making home loan product more attractive, so also to meet the requirement of high net worth customers of having a premium credit card, it has now been decided to offer premium cards linked with the quantum of limit of home loan as under: Borrowers with limit of Up to Rs.2/ lacs Above Rs.2 lacs & up to Rs. 5/- lacs Above Rs. 5 lacs & up to Rs. 10/- lacs Above Rs.10 lacs

Type of card No card Silver Exclusive Gold

GUIDELINES FOR CREDIT CARD ISSUANCE: 1) Free credit card is to be issued only to the first named borrower. However, an ADD ON facility can be availed of by joint account holders, on payment of usual fee for this. 2) The card issuance is free for the first year. Subsequent renewal fee is to be paid by the card holder. 3) The equitable mortgage of the property is not to be released by the branch even after settlement of loan account, unless a NOC is obtained from Bobcards Ltd. Branches must, therefore, write to Bobcards Ltd. early and not wait till the last instalment is paid, in order not to inconvenience customers. 4) With a view to ensuring that mortgage is not inadvertently released without obtaining NOC, branches may make a mention of credit card issuance in the Security Register, Attestation Memo and Register containing details of title deeds deposited with the Bank. 5) The borrower/(s) has/have to give an authority letter as per draft enclosed, interalia authorising branch not to release title deeds of the property mortgaged by him/them with the Bank unless a No Objection Certificate is not obtained from Bobcards Ltd. 6) The borrower has to fill in credit card application forms. 7) Branch has to give a certificate that the applicant is a home loan borrower and also mention therein the amount of loan sanctioned and date of creation of equitable mortgage. 8) The credit card application is to be forwarded to either the local / nearby branch of Bobcards Ltd., or its Registered Office, at Colaba Mumbai. 9) The application is to be forwarded promptly only after creation of equitable mortgage and on the day first disbursement is made. 10) In case housing loan customer is already having a credit card, no concession in the annual fee/charges will be given to him. 11) The customers of Rural & Semi Urban branches are also eligible for credit card.

Master Circular on Baroda Home Loan

Page 114

Annexure – 8 (A)

(UNSTAMPED UNDERTAKING)

Place : Date : The Branch Manager, Bank of Baroda, __________________Branch __________________

Dear Sir, Re: My Housing Loan /Overdraft against Property account with you. Whereas I have, taken a housing loan / overdraft against property of Rs.___________ from your Bank and as a security deposited title deeds of my/our property with the Bank, and created equitable mortgage on ____________in bank’s favour. I have also applied and obtained a Credit Card from BOBCARDS Ltd. which is a wholly owned subsidiary of Bank of Baroda. Being a card holder I abide by their rules and have also undertaken to make payment of the bills raised on me towards credit card usages. However, I hereby irrevocably authorize the Bank not to release my title deeds of the property mortgaged for availing the housing loan even after full settlement of my said housing loan/overdraft against property account, unless a No Objection/No dues certificate is produced by me from BOBCARDS Ltd.

Yours faithfully,

[Signature of the borrower(s) ]

Master Circular on Baroda Home Loan

Page 115

Annexure- 9

Powers delegated to various authorities parameters under Baroda Home Loan.

for

considering

deviations

on

(a) POWERS for FINANCIAL DEVIATIONS (CONCESSIONS) i.e. Deviations having direct impact on Bank’s Profit & Loss Account: Parameter for Deviation/ Concession To reduce the Rate of Interest: To waive Processing Charges: To waive Deviation Charges:

Regional Authority

Zonal Authority

Committee of General Managers on Retail Banking & SME Banking

No Powers

No Powers

No Powers

No Powers

No Powers

Upto 50%

No Powers

No Powers

No Powers

* Deviations for other financial parameters (for which deviation authority is not specified in

scheme profile) if any or deviations beyond the power of Committee of General Managers are to be referred to Retail Banking Dept., BCC. (b) POWERS For NON-FINANCIAL DEVIATIONS i.e. Deviations not having direct impact on Bank’s Profit & Loss Account.

The powers for considering maximum limit under Baroda Home Loan (Baroda Home Loan to Individuals & Baroda Home Loan to NRI/PIO) has been revised from 08.08.2014 as under: Parameter Deviation

for

Present Scheme Guidelines

Regional Head Existing

Zonal Head Revised

Existing

Revised

Metro& Urban: Upto Rs. 600 Lacs

Metro: Rs.1000 Lacs

Committee of General Managers on Retail Banking & SME Banking Existing Revised

To exceed maximum ceiling of loan limit:

Baroda Home Loan (Baroda Home Loan to Individuals, Baroda Home Loan to NRI/PIO)

Metro& Urban: Rs. 300 lacs

Upto Rs. 450 Lacs

Rural & SU: Rs.100 Lacs

Upto Rs. 150 Lacs

Master Circular on Baroda Home Loan

Upto Rs. 450 Lacs (No change)

Upto Rs. 150 Lacs (No change)

Metro& Urban: Upto Rs. 1000 Lacs

Urban: Rs.1000 Lacs (No change)

Urban: Rs.600 Lacs (No change)

Rural & SU: Upto Rs. 200 Lacs)

Upto Rs. 200 Lacs (No change)

Metro: Rs.1500 Lacs

Rural & SU: Upto Rs. 300 Lacs

Upto Rs. 300 Lacs (No change)

Page 116

Deviations in other Parameters as conveyed vide Circular No.BCC:BR:106/22 dated 21.01.2014: Parameter for Deviation

Regional Head

Zonal Head

1. To exceed maximum ceiling of loan limit: (in case of Home Improvement, AAA, Staff Home Loan under Public Scheme) 2.Margin Norms 3.To Exceed Repayment Period:

Upto 50%

Upto 100%

No Powers 1 to 6 years depending upon the maximum Repayment Period as per product profile and age of borrower/ coborrower.

No Powers 7 to 12 years depending upon the maximum Repayment Period as per product profile and age of borrower/ coborrower.

No Powers No Powers

1.

Full Powers

Full Powers

-----------

Full Powers

Full Powers

-----------

Full Powers

Full Powers

-----------

Full Powers

Full Powers

-----------

Full Powers

Full Powers

-----------

Waiver of existing accounts relationship 2. Maximum Age Parameters 3. Eligibility on the basis of Income 4.To consider last / current year’s income, as against last 3/2 years’ average income (as per parameters of the scheme) 5. Repayment Capacity 6.Extending Mortgage of property to secure more than one Retail Loan / other loans (Subject to obtaining two Valuation and considering the lowest of the two for calculation of eligibility)

Not more than Not more than three two Retail loans Retail loans /other /other loans loans

Master Circular on Baroda Home Loan

Committee of General Managers on Retail Banking & SME Banking Upto 200%

Not more than four Retail loans /other loans

Page 117

7.

Fresh Valuation of immovable property in case of purchase within last -3- years. (Subject to the condition that Region / Zone to satisfy about the fair and acceptable Valuation of the property.) (Not applicable to takeover Home Loans including Home Improvement & AAA) 8. To reduce the periodicity of 3 years for Valuation of immovable property, in case of existing accounts (Subject to the condition that Region/ Zone to satisfy about the fair and acceptable Valuation of the property.) 9.Accepting Unregistered agreement to Sell in case of Home Loans in approved Housing Projects, under construction linked plan on case to case basis and merit of the case. 10.Accepting Unregistered agreement to Sell in case of Home Loans in unapproved Housing Projects, under construction linked plan on case to case basis and merit of the case.

Full Powers

Full Powers

-----------

Full Powers

Full Powers

-----------

Regional Heads are authorized, subject to compliance of guidelines given in Annexure 7(D) of this circular. No Powers

Master Circular on Baroda Home Loan

----------

Zonal Heads be authorized (subject to compliance of existing guidelines given in Annexure 7(D) - only on selective basis in case of reputed builders and only after ascertaining credibility / viability of the project, as also after taking abundant precaution in documentation aspects, including taking Tripartite Agreement containing Indemnity Clause.)

-----------

-----------

Page 118

11. Age of Property (Subject to compliance of extant guidelines) 12. To consider more than 2- Housing Loans to the same borrower. [Please also refer guidelines for Home Loan for third dwelling units onwards to an individual under eligibility Point No.3(vi) of this circular.] Deviations in Take Norms- Home Loans

•

Over

Full Powers

Full Powers

-----------

No Powers

No Powers

No Powers

No Powers

No Powers

No Powers

Deviations for other non-financial parameters (for which deviation authority is not specified in scheme profile), if any or deviations beyond the power of Committee of General Managers are to be referred to Retail Banking Dept., BCC.

Deviation Charges for Home Loans: •

Rs. 1,500/- + Service Tax per deviation with maximum of Rs. 5,000/- + ST.

Full charges for all the deviations are to be recovered upfront at the time of request of the borrower and in case the deviations are not considered, proportionate 50% amount of deviation charges to be refunded to the borrower. e.g. if 3 deviations are requested in a Home Loan proposal, Rs. 4500/- to be recovered at the time of request, out of which, if -2- of the deviations are not considered, proportionate Rs. 1500/- i.e. 50% of Rs. 3000/- shall be refunded to the borrower.

•

Complete record of such charges recovered and charges refunded, if any, has to be maintained and be made available to the authorities for inspection.

•

Deviation charges recovered from the borrowers are to be credited in P/L Commission account.

•

Deviation charges will be levied on all type of deviation whether financial or non financial and be it considered at any level.

Master Circular on Baroda Home Loan

Page 119

Annexure – 10 (A) DOCUMENTS TO BE OBTAINED ALONG WITH APPLICATION FROM THE CUSTOMER FOR HOME LOANS TO INDIVIDUALS (RESIDENT INDIAN): •

Passport size photograph of all the applicants

•

Residence and age verification, which may be established from the PAN card, Election ID, Passport, Driving License, Ration card or Adhar Card

•

Bank statements for the last six months

•

Latest salary slip (for 3 months) / statement showing all deductions in case of employed applicants

•

Certified copies of Balance Sheets and Profit and Loss accounts, IT acknowledgments, advance tax challans (for both company/firm and personal account) for the last three years in case of self-employed applicants

•

Brief profile of the company / firm in case of self-employed applicants

• • •

Guarantor Details Balance Sheet of Guarantor Statement of Guarantee on Stamp Paper

Annexure 10 (B) DOCUMENTS TO BE OBTAINED ALONG WITH APPLICATION FROM THE CUSTOMER FOR HOME LOANS TO NRIs/PIOs/OCIs Personal Documents: 1. Copy of the employment Contract (If the contract is in any language other than English, the same has to be translated into English and attested by Employer / Indian Embassy). 2. Certified copy of the latest salary slips for the last 6 months. 3. Copy of the Identity card issued by the current Employer. 4. Continuous Discharge Certificate, if applicable. 5. Copy of latest work permit. 6. Copy of the Visa stamped on the passport. 7. NRE Bank account pass book or statement of account. 8. Overseas Bank Account Statement for the last 6 months. 9. Bio-data covering educational qualifications, age, job experience, nature of profession/ business etc., with necessary proof. 10. Guarantor forms along with net worth proof / income proof. 11. Copies of IT returns of last 2 years. (Indian / Foreign)

Master Circular on Baroda Home Loan

Page 120

12. Undertaking from the employer for remittance of monthly installment, wherever feasible, if stipulated in the sanction. 13. A salary certificate / income statement duly attested by our foreign office including susidiary office/ certified by the competent authority available in the country may be produced. This may also include Chartered / Certified Accountants, officials of Inland Revenue Dept. (similar to Income Tax Authorities in India) or any other agency specified for the purpose. Wherever attestation is not possible, this may be submitted duly notarized. For Self Employed: (a) Balance sheets and profit & loss accounts of the business/profession along with copies of individual income-tax returns for the last three years, certified by a chartered accountant (b) A note giving information on the nature of business /profession, form of organization, clients, suppliers etc For PIOs: A photocopy of the PIO Card or any of the under noted documents:• • •

Current passport indicating birth place in India/abroad. Indian Passport, if held earlier Parents or grand parents passport with details there in substantiating his claim of being a PIO

Master Circular on Baroda Home Loan

Page 121

Annexure 10 (C) LIST OF PROPERTY DOCUMENTS TO BE SUBMITTED BEFORE THE DISBURSEMENT OF LOAN DOCUMENTS COMMON FOR ALL CASES •

Original stamped receipts for the payments already made to the builder / seller, till date

•

37I Clearance form the appropriate Income Tax authorities, if applicable

•

List of additional amenities from builder where applicable

DOCUMENTS FOR SPECIFIC CASES Under construction/ Direct from Builder Original Agreement with the builder, duly stamped and registered (if the same has been received from the Sub-registrar’s office) and the original money receipt issued by the sub-registrar, for the registration fee paid by the applicant Pending Registration, following documents to be obtained: •

Certified true copy of the agreement with the builder

•

Original money receipt issued by the Sub-Registrar

•

Acknowledged copy of the authority letter, addressed by the applicant to the Sub-Registrar

•

Copy of the letter acknowledged by the builder / reseller in case he or his representative did not accompany applicant to Sub-Registrar’s office to admit registration (To be taken if applicable)

•

No Objection Certificate from the builder on his letterhead

•

Letter from the builder / architect indicating the latest progress of construction (for under construction cases)

2) Directly in Registered Co-operative Housing Society •

Original Allotment from society specifying the flat number and cost of the flat allotted

•

No Objection Certificate from the society, on their letterhead

•

Original share certificate issued by the society (if issued)

3) Purchased in resale 1. In a registered co-operative society: • Previous chain of Sale Agreements, (original / copies) • Present Agreement in original, between the vendor and purchaser duly stamped and registered OR

Master Circular on Baroda Home Loan

Page 122

• Pending Registration • Certified true copy of the agreement between the vendor and the purchaser • Original money receipt issued by the Sub-Registrar • Acknowledged copy of the authority letter, addressed to the Sub-Registrar • Copy of the letter acknowledge by the builder/reseller in case he or his representative did not accompany applicant to Sub-Registrar's office to admit registration • No Objection Certificate from builder / society • Original share certificate issued by the society (copy if original not yet transferred) 4) Directly from any Development Authority • Original letter from the Development Authority • No Objection Certificate from the Development Authority (as per their own format) • Original receipts, issued by the Development Authority, for the payments made for the flat 5) Construction of house on a separate plot of land • Original registered Sale deed / Lease deed / Partition deed / Gift deed under which the plot of land has been acquired • Pending Registration, following documents to be obtained: • Certified true copy of the agreement with the builder / seller • Original money receipt issued by the Sub-Registrar • Acknowledged copy of the authority letter, addressed by the applicant to the Sub-Registrar • Copy of the letter acknowledged by the builder/ reseller in case he or his representative did not accompany applicant to Sub-Registrar’s office to admit registration (To be taken if applicable) • Original receipts for the payment made for the plot, if separately available • All previous documents of title in respect of the plot in possession • 7/12 extract of property card as applicable for the property along with the record of rights in Form No.6 • Non-agricultural permission & latest Non-agricultural tax receipt • Title report for the property under consideration • Detailed estimate of the cost of the project • Approved building plans

Master Circular on Baroda Home Loan

Page 123

Annexure- 11 Home Loan to NRIs/PIOs/OCIs - List of close relatives, as defined u/s 6 of Companies Act, 1956. 1. Father

2. Mother (including step-mother)

3. Son (including step-son)

4. Son’s wife

5. Daughter (including step-daughter)

6. Father’s father

7. Father’s Mother

8. Mother’s Mother

9. Mother’s Father

10. Son’s son

11. Son’s son’s wife

12. Son’s daughter

13. Son’s daughter’s husband

14. Daughter’s husband

15. Daughter’s son

16. Daughter’s son’s wife

17. Daughter’s daughter

18. Daughter’s daughter’s husband

19. Brother (including step brother)

20. Brother’s wife

21. Sister (including step-sister)

22. Sister’s husband

Annexure- 12 FINACLE CODES & ASCROM CODES Baroda Home Loan

Finacle Codes

Ascrom Codes

201, 220, 221, LA111, LA112,LA120, 229 LA121 LA125, LA127** Baroda Home Loan to Individuals

LA009 LA129 LA128 (ISHUP)

849 997 860

Baroda Home Loan to NRIs/PIOs/OCIs

LA124

52

Baroda Home Improvement Loan

LA116

230

Baroda Additional Assured Advance (AAA)

LA114, LA115

233, 843

Golden Jubilee (GJRHF)

Rural

Housing

Finance LA120, LA121, LA122, 31 LA123

**LA127 is applicable for Special Home Loan Scheme effective from 16.12.2008 to 31.12.2009.

Master Circular on Baroda Home Loan

Page 124

Annexure - 13

Selling Points of Baroda Home Loan

•

Higher Loan limit - Rs. 3.00 Crores for Urban/Metro and Rs 1.00 Crores for Rural/ SemiUrban Branches

•

Competitive rate of interest. i.e, @ Base Rate 10.25% at present, for all new and existing borrowers irrespective of tenure and amount w.e.f. 01.06.2013.

•

No preclosure charges

•

0.25% concession in rate of interest on Car Loans to Home Loan borrowers.

•

0.50% concession in rate of interest on Loan to Consumer Durables to Home Loan borrowers

•

Longest repayment period up to 30 years

•

Loan on reimbursement basis for expenses incurred for construction/ purchase of House/Flat is also available

•

Online application facility

•

Free Personal accidental Insurance for principal borrower and all co-borrowers

•

Life Insurance Cover is available on optional basis on payment of one time premium by the borrower. Premium can be a part of Loan amount subject to margin/LTV norms.

•

Home Improvement Loan upto Rs.10/- Lacs for repair/renovation of existing House or purchase of furniture/fixtures/other gargets.

•

Top up Loan (Additional Assured Advance) up to Rs. 2.00 Crores

Master Circular on Baroda Home Loan

Page 125

Annexure- 14 Payment of incentives to staff members against the Home Loan leads directed by them and converted into real business. To compete in the market and not to lose business opportunities to our competitors, our Bank has decided payment of incentives to staff members for the Loan amount sanctioned and disbursed, against the leads directed by them and converted in to real business. This will generate quality Home Loan leads which shall be examined by the branches on merits and can be undertaken by the Branches/ RLFs. The scheme is effective from 17.06.2013. Salient features of the Scheme are as under: •

Payment of incentives to staff members against the Home Loan leads directed by them and converted into real business is as under: Amount of incentives (as per earlier Revised guidelines applicable w.e.f. 01.04.2014 upto guidelines applicable 31.03.2015 up to 31.03.2014) Loan application above Rs.2500/- per Loan Rs.8 Lacs upto Rs.25 Lacs application Rural application Rs.2500/Branches Loan application above above Rs.5000/- per per Rs.10 Lacs Rs.25 Lacs application application upto Rs.50 Rs.2500/- per Loan application above Semi Lacs application Rs.8 Lacs upto Rs.35 Lacs Urban Loan application above Rs.5000/- per Branches Rs.35 Lacs application Loan Rs.5000/application Loan application above Rs.2500/- per per Urban & Rs.10 Lacs upto Rs.50 Lacs application above application Metro Rs.50 Lacs Loan application above Rs.5000/- per Branches Rs.50 Lacs application

•

Staff member will not claim any TE / DA for mobilization of Home Loan Leads.

•

Staff member will obtain leads on Home Loan requirements of individuals from various sources and explain Home Loan Product details Fill in Home Loan application and obtain all the requisite documents and deliver to the Branch / RLF. He will follow up the application till sanction / disbursement.

•

The mobilization should happen outside the office hours and on holidays. Staff Members must ensure that the daily routine of the Branch / RLF should not get disturbed.

•

The leads generated exclusively by the staff members and duly certified by the Branch Heads will qualify for incentive scheme. Branch Heads to note carefully

Master Circular on Baroda Home Loan

Page 126

that lead generated by the approved builders and subsequently claimed by the staff members, shall not be eligible for staff incentive claim. •

Presently Bank is offering staff incentive scheme in various other areas of operations viz NPA / PWO Recovery, Issuance of Debit Cards, other incentives etc.Therefore, total of various incentives received by the staff member during the Financial Year should not exceed the prescribed limit stipulated by the HRM Department, BCC, Mumbai.

•

The total amount of incentive (under all incentive scheme) received by any employee should not exceed 20% of his gross annual salary as per Government guidelines. Gross annual salary will be computed on the basis of gross salary on regular monthly basis. Taxes, if any, shall be borne by the staff member.

•

Staff members to note carefully that all incentives received by them, will be added to their income for calculation of all types of taxes.

•

Branch Heads should maintain proper records of lead generation and their conversion into disbursement. (As per the format in Annexure-25)

•

Branches shouldl submit a monthly statement to their controlling Office informing the monthly payment of incentives to the staff members.

•

The amount to be paid by way of incentive will have to be entered in Payroll -> Periodic Entry ->Monthly Entry in ‘Incentive for Bus. Devp’ Field and the same will be get paid with the salary. While entering the incentive, in payslip message field, branches may be advised to enter the details in text format. The amount will also get included in total income and prorate tax will be deducted by the system.

•

Payment of incentive to staff members against the Home Loan leads directed by them and converted into real business should be made only through salary payment through HRness as mentioned above.

•

At present the scheme will be applicable up to 31.03.2015 till further instructions. (Refer Circular No.BCC:BR:106/291 dated 07.08.2014 regarding continuation of the scheme upto 31.03.2015)

Master Circular on Baroda Home Loan

Page 127

Annexure- 15 Payment of service charges to Approved Builders against the Home Loan leads directed by them and converted into real business. To compete in the market and not to lose business opportunities to our competitors, our Bank has decided payment of service charges to Approved Builders, whose Housing Project is approved by our Bank for the Loan amount sanctioned and disbursed, against the leads directed by approved builder and converted in to real business. This will generate quality Home Loan leads which shall be examined by the branches on merits and can be undertaken by the Branches/ RLFs. Salient features of the Scheme are as under: •

Payment of service charges for the Loan amount sanctioned and disbursed, against the leads directed by the builder and converted in to real business is applicable only to approved builders whose Housing project is approved by our Bank .

•

Zonal & Regional Heads are authorized to approve Builders and the project developed by them on the recommendation of RLF / Branch as per eligibility criteria advised vide circular no. BCC:BR:104:115 dtd 02.04.2012.

•

RLF / Branch Head will give appropriate product information inputs to the identified approved builder or his authorized nominee or Builder’s sales executives, employee etc or marketing agent of the Builders so as to enable them to give proper guidance to the prospective Home Loan Borrowers.

•

Builder or his authorized representatives after briefing their customers about our product would direct them to RLF / Branch.

•

Builders will provide facilities for bank’s officials by providing table & Chair, local telephone line and lighting etc in their premises for interaction with their customers and taking forward the proposal.

•

Builders will be paid service charges, which should not exceed 0.25% of the Home loan amount for every case directed to the Bank or Rs 25000/ which ever is lower subject to sanction and disbursement of Home Loan by the Bank

•

The service charges of 0.25% will be paid to the –Approved Builder or his authorized nominee or builder’s sales executives, employee etc or marketing agent of the Builders. A list of authorized builder’s sales executives, employees etc, their account details and Bank’s name should be obtained from the Builder, project wise on Builder’s letter head, which will be retained at the Branch for identification of the sales executives for payment of service charges.

,

Master Circular on Baroda Home Loan

Page 128

• •

Branch should however ensure that there is no double payment of service charges. All the payments of service charges to Approved Builders against the Home Loan leads directed by them and converted into real business should be routed through the following Finacle A/c No. opened for all Branches. No. xxxx0054511066 (xxxx being SOL ID of the Branch)- P/L Payment of Service Charges to Approved Builders.

•

Branches should maintain proper record of the Home loan service charges payment, which will be subjected to Audit & Inspection by ZIC & Regional Office. (As per the format in Annexure - 26)

•

Branches should submit a monthly statement to their controlling Office informing the monthly payment of service charges to the Builders

•

Service charges will be paid at the time of first disbursal inclusive of service tax. Taxes, if any, shall be borne by the Builder.

•

Service Charges should be paid through an account payee instrument only. Under no circumstances, service charges are to be paid in cash.

•

Builder will not use Bank’s name or logo to promote its business and there shall be no representation from Builder’s that Bank will offer credit facility as a matter of right to the Builder’s customers. Providing credit will be at the sole discretion of Bank as per norms under the scheme.

Master Circular on Baroda Home Loan

Page 129

Annexure-16 Implementation of orders of Delhi High Court Supreme Court of India has directed Municipal Corporation of Delhi to seal all unauthorized business units i.e. shops & offices set up in residential area in contravention of the laws in this regard. Hence, many of such enterprises have either been sealed or closed their business operations. This has caused financial hardship to all such businessmen and they failed even in meeting out their basic family needs. Besides the owners of the properties and businessmen, the bankers providing finance to these business organizations and for properties have also been hit by the orders of Supreme Court, as they are not in position to recover money from such borrowers. In this context, during the hearing in the writ petition filed by Kalyan Sanstha Welfare Organization, the Hon'ble High Court of Delhi has directed as under: 'We hereby direct that henceforth Banks will check whether the loan sought for is for authorized structure or an unauthorized structure and the Banks will obtain an undertaking on an affidavit from the parties seeking such loans that the building is constructed as per sanctioned building plans. Banks shall also ensure that the sanctioned building plans are attached with the undertaking. Let necessary directions be issued in this regard either by the concerned Ministry of Banking or the Reserve Bank of India'. The Monitoring Committee constituted by the Hon'ble High Court of Delhi regarding Unauthorized Construction, Misuse of Properties and Encroachment on Public Land, has issued certain directions through Reserve Bank of India for immediate compliance by the banks / Financial Institutions. Therefore, branches are advised as under: A. Loan for house construction  In cases where the applicant owns a plot / land and approaches the banks / FIs for a credit facility to construct a house, a copy of the sanctioned plan by competent authority in the name of a person applying for such credit facility must be obtained by the Banks / FIs before sanctioning the home loan.  An affidavit-cum-undertaking must be obtained from the person applying for such credit facility that he shall not violate the sanctioned plan, construction shall be strictly as per the sanctioned plan and it shall be the sole responsibility of the executant to obtain completion certificate within 3 months of completion of construction, failing which the bank shall have the power and the authority to recall the entire loan with interest, costs and other usual bank charges.  An Architect appointed by the bank must also certify at various stages of construction of building that the construction of the building is strictly as per sanctioned plan and in case of completed project shall also certify that the

Master Circular on Baroda Home Loan

Page 130

completion certificate of the building issued by the competent authority has been obtained. B. Loan for purchase of ready house / flat.  In cases where the applicant approaches the bank/FIs for a credit facility to purchase the built up house/flat, it should be mandatory for him to declare by way of an affidavit-cum-undertaking that the built up property has been constructed as per the sanctioned plan and/or building bye-laws and as far as possible has a completion certificate also.  An Architect appointed by the bank must also certify before disbursement of the loan that the built up property is strictly as per sanctioned plan and/or building bye-laws. C.

Unauthorised Colonies 

D.

No loan proposal in respect of those properties, which fall in the category of unauthorized colonies unless and until they have been regularized and development and other charges paid, should be considered. Commercial Property



No loan should be granted in those proposals, which relate to the properties meant for residential use but the applicant intends to use the same for commercial purposes and declares so while applying for loan.

To safeguard bank’s interest, the branches are advised to strictly comply with the above directions while considering any housing loan request.

Master Circular on Baroda Home Loan

Page 131

APPLICATION FOR HOME LOAN (for Resident Indians)

Please affix recent photograph

I/We request you to grant me/us a loan facility of Rs. ____________________ under Home Loan Scheme for _______________________________________________________________________________________ To enable you to consider the proposal, I/We submit the following particulars.

Please complete all sections in BLOCK LETTERS and tick

√

options wherever applicable

Name: _______________________ _______________________ (First name) (Middle name) PAN/GIR No. : ____________________ Date of Birth : ______ ____ ______ (DD) (MM) (YYYY) Age: _______ (years) Sex : Male/Female Marital Status: Single/Married/Divorced/Widowed E-mail: ___________________________________ Employment status (tick mark): •

Salaried

•

Self-employed

•

Professional

•

House wife

• Others Previous address: Address: _____________________________ __________________________________ _________________________________ City: ___________ State: _______________ Pin code: ___________ ___ Father's/Husband's name: ____________________ ____________________

Are you a BOB staff (Y/N): _____

__________________________ (Last name)

Present address: Address: __________________________________ __________________________________ _______________________________ __ City: ______________ State: ________________ Pin code: ___________ ___ Phone number: (O)_____________(R) __________ Years in current address: _________________ Mobile phone no: _______________ Fax no: ___________________ Changed Residence in past 3 years : Not Changed Once More than Once Permanent address: Address: __________________________________ __________________________________ _______________________________ __ City: ______________ State: ________________ Pin code: ___________ ___ Phone number: ________________

Education (tick mark): •

Matric or below matric

•

Under Graduate/Higher secondary

•

Graduate

•

Post-graduate

•

Doctorate

Category: SC/ST/OBC/OTHERS/MINORITY COMMUNITY Passport No: ______________

Mention branch where loan account should be opened: Reason for choosing the branch (tick mark)

Income and expenses Primary monthly income Gross income: ______________ Deduction: ______________

Banking with us (Y/N): ______ If yes, then fill the following: Banking with us since: _______ (YYYY) Account type: ______________ Account number: ___________ Branch name: ______________ No. of dependents (excluding spouse): ________ No. of children: ________ Earning member in family, if any (Y/N): __________

•

Near location of target property

•

Near place of work/business

•

Near place of present residence

•

Branch maintains salary account

•

Other: __________________

Other income details

Monthly expenditure

Rent received: ______________ Agriculture: ______________ Others: _______________ Description: _______________ _______________

Loan repayment: ____________ Rent paid: _____________ Others: _____________

Page | 132

Salaried: Please tell about your work: Employer name: ___________________________ Department: ___________________________ Address: _________________________________ _________________________________ City: ____________ State: _____________ Pin code: _________ Phone no: ______________ Extn No: ________ Fax no: ____________________ Company email: ___________________________ Designation: Executive/Managerial/Clerk Years with employer: _________ Contact person: __________________ Name of previous employer: _________________ Retirement age: ____ Working with: •

Govt./Public sector

•

Public Ltd

•

Private Ltd

•

Partnership

Self-employed/Professionals: Please tell about your work: Name of company/firm: _____________________________________ Activity: _______________________________ Address: _________________________________ _________________________________ City: ____________ State: _____________ Pin code: _________ Phone no: ____________ Fax no: ____________________ Company email: ___________________________ Designation: Executive/Managerial/Professional If professional, then choose one of the following: Doctor Architect CA MBA Engineer Lawyer Others: ________ Years in business/profession: _________ Contact person: __________________ Retirement age: ____ Business details:

•

Proprietorship

•

•

Private Ltd

MNC Credit card details

Credit Cards Owned : ______ Card Issuer: ________ Card No. : _____________________________

•

Colour TV

• Telephone

•

Refrigerator

• Cellular Phone

•

Car

• Personal Computer

•

Two Wheeler

• Washing Machine

About bank accounts (including credit facilities, if any): Name of Branch Branch Number of Account Bank telephone years type number account held

Outstanding Loan details in individual name : Source Purpose Date of Loan sanction Amount

Outstanding

Income Details: 1. Gross Monthly Income (Rs.) : _________ 2. Salaried Person (I) Monthly Basic (Rs.) : _________ (ii) % of PF deduction : _________ 3. Annual Professional Tax : ________ 4. For Tax Purpose (i) Total Annual Savings under s/88:__________ (ii) 100% Rebate Amount : __________ (iii) Deduction under chapter VI A : __________ (iv) Other Rebate /Deduction claimed: _________

5.

Net Annual Income of other Family members:

Partnership

• Proprietorship Others: _______________ Established since: ________________ Other assets

__________

EMI

Account Number

Account balance (Rs.)

Overdue amount, if any

As on date

Overdue since

Details of other present immovable Properties (Other than proposed as security for housing loan)

Nature of properties: Plot of Land Agricultural Land House/ Godowns Others Location: Survey / House No.__________ Street / locality_______________ _________ Village/ Town__________Distt:____________ Property in whose name?____________ Area / Size of the property: Cost (at the time of purchase): Rs._______ Present estimated market value: Rs. Whether encumbered: If yes, give detail:

(Excluding co applicant & Guarantor)

Page | 133

Information on Guarantor/Co-applicant (if present) About your Guarantor: About your Co-applicant: Name : _______________________ Name : _______________________ Date of birth: _________________ (DD/MM/YYYY) Date of birth: _________________ (DD/MM/YYYY) Father’s/husband’s name: ___________________ Father’s/husband’s name: ___________________ Relation with Applicant: _____________________ Relation with Applicant: _____________________ Address: ____________________________ Address: ____________________________ ____________________________ ____________________________ ____________________________ ____________________________ City: __________ Pin code: _________ City: __________ Pin code: _________ State: _______________ State: _______________ Occupation: _______________________ Occupation: _______________________ Phone/Fax: _______________________ Phone/Fax: _______________________ Email: ________________________ Email: ________________________ PAN/GIR Number:________________________ PAN/GIR Number:________________________ Net Annual Income (Rs.): ____________________ Net Annual Income (Rs.): ____________________

Net worth In Rs.

Applicant

Co-applicant, if present

Guarantor, if present

1. Total movable 2. Total immovable 3. Total assets (1+2) 4. Total liabilities 5. Net assets (3-4) 6. Amount of collaterals Proposed Loan Details: Tenure in Months: ____________________ Purpose: ______________________________ (a) Purchase Price (Rs): ______________ (b) Stamp Duty (Rs): ____________________ (c) Registration Fee (Rs): __________________ (d) Other (Rs): __________________________ Total (a+b+c+d) (Rs): _____________________ Details of Movable Assets in my name: (A) Life insurance Policies Policy No. Date of Sum issuance Assured

Outside Borrowings (Rs): ___________________ Loan Amount requested (Rs):________________ Rate of Interest %:_________________________ Floating / Fixed: ________________ Margin %: _______________________________

Co. & Branch name

Annual Premium

Premium paid or surrender value

(B) Shares/ Debentures/ Term deposits / Govt Securities (NSC etc) Co./ Bank/ Post Office

Date of Instrument

Face Value

Present value

Due date

Whether encumbered

(C) Other movable assets: Descriptions

Year of acquiring

Purchase price

Market Value

Valuation date

Page | 134

(D) Details of Liabilities: Details Of Loan In Firms Name/ Company’s Name where you are interested as Prop, Partner/ Director

a) Name of the Bank/ institution and its branch :______________________ b) Purpose and amount of loan/ credit facilities :______________________ c) Security / Repayment schedule :________________________________ d) Present outstanding :________________________________ e) Liabilities other than to Bank and Financial Institutions: ________________ Details of Personal Guarantee given for any person/firm. If yes, furnish details (i.e. Name of the Bank/ Institutions, on whose behalf, amount of guarantee, present status of a/c etc.) I enclose / Submit documentary proof in support of the above submissions. The loan applied for as above for Rs………….(Rupees…………………………………………………………) under Direct Housing Finance Scheme is repayable in …………..monthly instalments of Rs……………….each. I / We note that the rate of interest applicable on the loan will be at ……..% p.a. which would be applied at quarterly / monthly interval or as applicable from time to time. I undertake to contribute Rs……………..towards margin money being ………% of the project cost. Further I give below particulars about myself, dependants & legal heirs Name/Age of dependents/ Relationship with Address Legal heirs the borrower

Occupation / Vocation of Legal heirs

I/We hereby declare that all the particulars and information furnished in the application form are true, correct and complete and up-to-date in all respects. I/We have not withheld any information. I/We confirm that I/We have had no insolvency proceedings initiated against me/us nor have I/We ever been adjudicated insolvent. I/We also authorize Bank of Baroda or its agent to make references and enquiries relative to information in this application which Bank of Baroda considers necessary. I/We also authorize Bank of Baroda to exchange, share, part with all information relating to my/our loan details and repayment history information to other Banks/Financial institutions/ Credit Bureaus/Agencies as may be required and shall not hold Bank of Baroda liable for use of this information. I/We undertake to inform Bank of Baroda regarding any change in my/our residence/employment/Occupation/Transfer and to provide any other information that Bank of Baroda may require. I/We further agree that my/our loan shall be governed by the rules of Bank of Baroda which may be in force from time to time. Bank of Baroda reserves the right to reject any application without providing any reason. I further declare that I am not a Director in any Bank. There is no litigation against the firm or me / co. in which I am the proprietor / a partner/ a Director. I am / was not interested as Proprietor / partner/ Director in any firm/ company whose name is listed in caution list of RBI/ ECGC. I/we under take to bear processing, service, documentation charges etc. stipulated by the bank from time to time. I/we agree, note and understand that Bank of Baroda shall be entitled at its sole discretion to call back, the entire loan/advance whether due and payable or not at any time without assigning any reason and enforce its rights, remedies and securities. Yours faithfully,

Place : __________________________________ Date __________________________________

Signature of the Applicant/s / Co - Applicant

I am willing to stand as guarantor for the above loan ( details as per enclosed sheet)

Place Date

: ______________________________ : _____________________________

Signature of the Guarantor/s

-------------------------------------------------------------------------For office use only-----------------------------------------------------------------------------Warm lead No: ______________ Borrower number:_______________

Sales executive code: Branch name and alpha code where parked :

Property Details Proposed for the Loan (For Office use ): 1. Stage of construction (For New Construction): Final / Intermediate / Foundation / Plot 2. Age of Building/Flat in years (For Existing Construction ) : __________________ Builder’s/Seller’s Name: _____________________________________________________________ Area details: Total area- ____________ Sq. ft. Built up area - _____________ Sq. ft. Location / Address: ______________________________________________________________________________ ______________________________________________________________________________

Page | 135

Particulars about Co- Borrower / Guarantor (wherever applicable)

Name:

Father’s / Husband’s Name:

Details of other present immovable properties (Other than proposed as security for housing loan in case of co borrower) Nature of properties: Plot of Land / Agricultural Land / House/ Godowns / Others Location: Survey / House No.__________Street / locality_________________ _________ Village/ Town___________ Distt:____________ Area / Size of the property: Present market value: Rs. Whether encumbered: If yes, give detail: Details of Movable Assets in my name: (A) Life insurance Policies Policy No. Maturity Sum Co. & Date Assured Branch name

Last premium paid up to

Total Premium paid or surrender value

(B) Investments(Shares/ Debentures/ Term deposits / Govt Securities like,NSC etc) Description Face value No of units Present market value

(C) Other movable assets: Descriptions

Purchase price

Market value

Valuation date

(D) Details of liabilities: Details Of Loans / advances availed from Bank’s / Institutions & other liabilities: Name of Bank/ Institution: Purpose : Amount of Loan P/O ___________ overdue if any. Details of Personal Guarantee given, if any: Name of the person on whose behalf ________________ Bank / Institution Amount of commitment _____________ Overdue if any_____________Particulars of Legal Heirs: Sr. No.

Name

Relationship

Age

Present Address

I enclose / submit documentary proof in support of the above submissions. I further declare that the information submitted above is true and correct to best of my knowledge and belief. Place: Date:

Signature

Page | 136

FOR INFORMATION OF HOME LOAN APPLICANT : A. UNIFIED PROCESSING CHARGES: Unified processing charges includes processing charges, documentation charges, document verification charges and pre & one time post sanction inspection charges will be levied as detailed below: Loans upto Rs. 30/- lacs Loans above Rs. 30/- lacs

: 0.50%. (Minimum Rs.5,000/-) : 0.40% (Minimum Rs.15,000/- , Maximum Rs.50,000/-) (service tax will be applicable separately in addition to above) Charges in respect of Advocate fee for legal opinion and valuation charges are will be levied separately in addition to above Unified Processing charges. In case of takeover of Home loan: 0.10% + Service Tax B. PREPAYMENT/ PREMATURE CLOSURE CHARGES: •

No penalty is payable if loan is prepaid partly or fully.

C. LIST OF DOCUMENTS TO BE OBTAINED FROM THE CUSTOMER : • Passport size photograph of all the applicants • Residence and age verification, which may be established from the PAN card, Election ID, Passport, Driving License or Ration card. • Proof of Business / office address. • Bank statements for the last six months • Copy of IT Returns for last 3 years alongwith assessment order. • Salary slips for last 3 months (Minimum) in case of salaried class applicants. • Copy of LIC premium receipts, if any, and / or copies of other investments. • Certified copies of Balance Sheets and Profit and Loss accounts, copy of IT Return alongwith assessment orders, advance tax challans (for both company/firm and personal account) for the last three years in case of self-employed / business category applicants • Brief profile of the company / firm in case of self-employed applicants • Guarantor Details • Copy of property documents • Cheque for unified processing charges ______________________________________________________________________ ACKNOWLEDGEMENT TO THE APPLICANT FOR APPLICATION: We have received home loan application from Mr. ____________________________ S/o _________________________________ of ______________________________ for Rs. ______________________ on ________________.

Seal of the Branch

For Bank of Baroda _______________Branch Date:_________________

Page | 137

RETAIL LENDING Application Form – HOUSING LOAN (NRIs / PIO)

Bank of Baroda

btìGò Atéßò btQ‡tèVt

ALPHA CODE:

Please Affix Recent Photograph

Borrower No. _______________________

I/We request you to grant me/us a loan facility under Housing Loan Scheme for __________ To enable you to consider the proposal, I/We submit the following particulars. Please complete all sections in BLOCK LETTERS and tick Name

√

boxes wherever applicable

: _______________________ _______________________

__________________________

Category : SC/ST/OBC/OTHERS/MINORITY COMMUNITY PAN/GIR No. : ____________________ Present Overseas Address : __________________________________________________________________________ PIN : ________________ ______________________________________________________________________ Telephone : ________________ Fax : ______________________ Mobile No. : ______________________ No. of Years in present business/ employment: Changed Employment in past 3 years :

Not Changed

Once

Date of Birth

: _______ (DD) _______ (MM) ______________ (YYYY)

Permanent Address

: ____________________________________________________________________________ _________________________________________________________PIN : ______________

Tel.

: ____________ Fax : _____________ E-mail : _____________________________________

i)

About Yourself

Sex :

Male

Education :

Matric Under Graduate Graduate Post-Graduate Doctorate

If Professional :

Doctor Architect CA MBA Engineer Lawyer

Single Married Divorced Widowed

:

Net worth Applicant Co applicant Guarantor

Female Marital Status:

Age

More than Once

No. of Dependents : ______ Others _______________ (Excluding spouse) No. of Children : _________ Credit Card Details : Credit Cards Owned : ______ Card Issuer: ________ Card No. : _______________________________________ Bank of Baroda Account No. __________________ CA / SB Branch Name: ______________________________________

1. Total Moveable 2. Total Immovable 3. Total Assets 1+2 4. Total Liabilities 5. Net Assets 3-4 6. Amount of Collaterals 7.

Presence of Guarantor : Yes / No (If yes, give details in above column)

PASSPORT No.: Place of Issue : Date of Issue : Valid upto : Date of Visa granted / work permit : Valid upto :

Salaried: Please tell us about your work: Name of Organisation : ____________________________ Designation : Executive Managerial Clerk Department : ___________________________________ Office Address : __________________________________ ________________________________________________ _____________________________PIN : ______________ Tel.: _________Extn. No. :___________ Fax : __________ E-mail : ________________________________________

Self Employed / Professional/Business Please tell us about your work:

Working with :

Tel. : __________________ Fax : _________________

Govt./Public Sector Public Ltd. Pvt. Ltd. Partnership Proprietorship MNC

Working Since: ______________. Retirement Age: ______

Name of Company : _____________________________ Office Address : ______________________________________________

PIN : _________________

E-mail : _______________________________________

Business Details :

Pvt. Ltd.

Partnership

Years at Current Job : Greater than 5 Years Between 3 to 5 Years Between 1 to 3 Years Less Than 1 Year

Proprietorship Others ____________________ Established Since: _______________________________

Gross Monthly Income: Rs.____________________

Designation:

Proposed Loan Details:(To be filled by Branches/Offices) Tenure Months:_______________________ Purpose:_____________________________ Purchase Price(Rs):____________________ (a) Stamp Duty : _________________ (b) Registration Fee : _____________ (c) Others : _____________________

1. Gross Monthly Income (Rs.) 2. Salaried Person (I) Monthly Basic (Rs.) (ii) % of PF deduction

:

_______________________

: :

_______________________ _______________________

3.

:

______________________

4.

Loan Amount(Rs):_____________________

Margin %:____________________________

Managerial

Years in Current Business : >5 3 – 5 1 – 3 <1 Greater Less Gross Monthly Income: ______________________ Income Details:

Outside Borrowings (Rs):________________

Rate of Interest %:_____________________ (Floating / Fixed option)

Executive

Annual Professional Tax

For Tax Purpose (i) Total Annual Savings under s/88: ______________________ (ii) 100% Rebate Amount : ______________________ (iii) Deduction under chapter VI A : _____________________ (iv) Other Rebate /Deduction claimed: ______________________

5. Total Monthly house hold expenses : ______________________ 6. Monthly other loan amount : ______________________ 7. Net Annual Income of other Family members: ________________ (Excluding co applicant & Guarantor) 8. Gross Income during last two years: I II Salary Income Bonus, if any Incentive, if any Total

___________________ ___________________

Average Income of last two years : (Rs)

Property Details (For Office use ) : 1. Stage of Construction (For New Construction) : 2. Age of Construction (For Existing Construction ) :

Final

Intermediate

< 5 years 10 years – Maximum Limit

Foundation

Planning

5- 10 years >= Maximum Age Limit

Builder’s / Seller’s Name : _________________________________________________________________________ Area : Total - __________ Sq. ft. Built up - _____________ Sq. ft. Location / Address : ____________________________________________________________________________________________ _____________________________________________________________________________

Outstanding Loan Details Source/Type 1) 2) 3)

Amount of Loan

Outstanding

EMI

Default /Overdue Since

About Your Bank Account (including credit facilities if any)

Name of the Bank Main Bank:_________ Others: 1) 2)

Branch & Telephone No. _______________

A/c. Type

A/c No.

_________________

________________

No. of years account held _________________

About your Co-applicant : Name : _______________________ Relation with Applicant : _______________________ Address : _______________________ _______________________ Occupation : _______________________ Phone/Fax : _______________________ Email ________________________ PAN/GIR Number :________________________ Net Annual Income (Rs.) : ______________________

About Guarantor : Name

: _____________________

Address

: _____________________ _____________________ : _____________________ : _____________________ : ______________________ : _____________________ _____________________

Occupation Phone/Fax Email PAN/GIR Number Net Annual Income (Rs.) :

The loan applied for as above for Rs………….(Rupees…………………………………………………………) under Direct Housing Finance Scheme is repayable in …………..monthly instalments of Rs……………….each. I / We note that the rate of interest applicable on the loan will be at ……..% p.a. which would be applied at quarterly / monthly interval or as applicable from time to time. I undertake to contribute Rs……………..towards margin money being ………% of the project cost.

Further I give below particulars about myself, dependants & legal heirs: Name/Age of dependents/ Legal heirs

Relationship with

Address

the borrower

Occupation / Vocation of Legal heirs

I/We hereby declare that all the particulars and information furnished in the application form are true, correct and complete and up-todate in all respects. I/We have not withheld any information. I/We confirm that I/We have had no insolvency proceedings initiated against me/us nor have I/We ever been adjudicated insolvent. I/We also authorize Bank of Baroda or its agent to make references and enquiries relative to information in this application which Bank of Baroda considers necessary. I/We also authorize Bank of Baroda to exchange, share, part with all information relating to my/our loan details and repayment history information to other Banks/Financial institutions/ Credit Bureaus/Agencies as may be required and shall not hold Bank of Baroda liable for use of this information. I/We undertake to inform Bank of Baroda regarding any change in my/our residence/employment/Occupation/Transfer and to provide any other information that Bank of Baroda may require. I/We further agree that my/our loan shall be governed by the rules of Bank of Baroda which may be in force from time to time. Bank of Baroda reserves the right to reject any application without providing any reason.

I/we under take to bear processing, service, documentation charges etc. stipulated by the bank from time to time. I/we agree, note and understand that Bank of Baroda shall be entitled at its sole discretion to call back, the entire loan/advance whether due and payable or not at any time without assigning any reason and enforce its rights, remedies and securities. Yours faithfully, Place : __________________________________ Date __________________________________ Signature of the Applicant/s / Co - Applicant

I am willing to stand as guarantor.

Place

: ______________________________

Date

: _____________________________

Signature of the Guarantor/s

LIST OF DOCUMENTS TO BE OBTAINED WITH APPLICATION FORM:

Personal Documents : 1. Copy of the employment Contract (If the contract is in any language other than English, the same has to be translated into English and attested by Employer / Indian Embassy). 2. Certified copy of the latest salary slips for the past 6 months. 3. Copy of the Identity card issued by the current Employer. 4. Continuous Discharge Certificate, if applicable. 5. Copy of latest work permit. 6. Copy of the Visa stamped on the passport. 7. NRE Bank account pass book or statement of account. 8. Overseas Bank Account Statement for the last 6 months. 9. Bio-data covering educational qualifications, age, job experience, nature of profession/ business etc., with necessary proof. 10. Guarantor forms along with net worth proof / income proof. 11. A copy of IT returns of last 2 years. (Indian / Foreign) 12. 12. Undertaking from the employer for remittance of monthly installment, wherever feasible, if stipulated in the sanction. 13. A salary certificate / income statement duly attested by our foreign office including susidiary office/ certified by the competant authority available in the country may be produced. This may also include Chartered / Certified Accountants, officials of Inland Revenue Dept. (similar to Income Tax Authorities in India) or any other agency specified for the purpose. Wherever attestation is not possible, this may be submitted duly notarized.

For Self Employed: (a) Balance sheets and profit & loss accounts of the business/profession along with copies of individual income-tax returns for the last three years, certified by a chartered accountant (b) A note giving information on the nature of business /profession, form of organization, clients, suppliers etc

For PIOs: A photocopy of the PIO Card or any of the under noted documents:• • •

Current passport indicating birth place in India/abroad. Indian Passport, if held earlier Parents or grand parents passport with details there in substantiating his PIO

claim of being a

Property documents: i. ii. iii. iv. v.

Receipt for payments made for purchase of the residential unit. Copy of approved drawings of proposed construction / purchase. Permission from competent authority for construction of flat/house Permission from competent authority under Urban Land Ceiling & Regulation Act,1976 Agreement for sale / sale deed / detailed cost estimate from Architect / Engineer for the property to be constructed. vi. Allotment letter from the co-operative society/ association of apartment owners. vii. Other documents depending upon -

1. 2. 3. 4. 5.

Property to be purchased directly from builder (ready / under construction). Property belonging to a Registered Co-operative Housing Society. Purchase in resale. Direct sale by any Development Authority. Construction of house on a separate plot of land.

PRE-SANCTION VISIT REPORT FOR RETAIL LENDING 1.

NAME OF THE APPLICANT

:

Mr./Ms/Smt.

2.

FATHER’S/HUSBAND’S

:

Mr.

3

RESIDENTIAL ADDRESS

:

4.

PURPOSE OF LOAN

:

5a)

NAME OF THE PRODUCT/ ARTICLE TO BE PURCHASED NAME OF THE SUPPLIER PRUCAHSE PRICE

: :

5b)

GENUINESS OF QUOTATION VERFIED

Rs.

:

(Inclusive of all taxes) a) OVER PHONE NO. b) NAME OF THE PERSON CONTACTED a) BY PERSONAL VISIT b) NAME OF THE PERSON CONTACTED

6. 7.

DATE OF VISIT : PROOF FOR VERIFICATION OF RESIDENTIAL ADDRESS Ration Card No. Voter ID Card No. Electricity/Telephone bill (-1- bill older than 6 months and –1- latest bill) Residence is Owned Rented Leased

(


whichever is applicable)

Passport No./PAN No.

Rental Agreement

Whether residing with parents/relatives Provided by Employer

(
whichever is applicable)

Place visited with Identification Landmark 8. OCCUPATION OF APPLICANT (GIVE DETAILS) (b) BUSINESS (a) SERVICE A) i) Name of Employer Name of the firm ii) Address Address

iii) iv) v) vi)

vii)

Designation Working Since Employee No. Whether confirmed/ probation / or on contract basis Phone No.

Applicants position in the firm Established since Nature of Business

C) i) ii)

SELF-EMPLOYED & PROFESSIONAL Occupation Address

iii)

Phone No.

Office

Office

9. EMPLOYMENT DETAILS Details verified by/through Personal visit to Office on Name of person contacted 10.

Residence

Residence

Mobile

Mobile

Over Tel.No

GROSS ANNUAL / MONTHLY INCOME Rs. Details verified from: a. Form No.16 (for the financial year ended ……………) b. Salary Slip (for the month of …………………...) c. Income tax Return for ………. years (along with original copy of Tax Challan Period ………..) d. Number of dependants e. Total annual/monthly deduction Rs: f. Net annual /monthly income Rs.

Page | 142

11.

12.

PRESENT BANKERS Name of the Bank Type of A/c Details of A/c verified from Bank Statement/Pass Book Cheque returned – number of times:

LOAN OUTSTANDING Name of the Branch Type of Loan Amount Sanctioned Balance Outstanding Amount of Overdues ,if any Asset Classification

: : : : : :

Branch A/c No. (Copy obtained on record)

WITH OUR BANK

WITH OTHER BANK

Rs. Rs. Rs.

Rs. Rs. Rs.

13.

DETAILS OF THE PROPERTY TO BE PURCHASED (to be filled in case of Housing Loans) (Loan requested for (
) Purchase of Ready Flat Purchase of Repairs & Take over Construction of land Old House Renovation from Other house Bank

Sale Amount Value as per Valuation Report, value indicated in the sale deed may also Abe taken into account. In case of wide variation, comments required. Name of the person representing seller contacted & details verified Area in Sq.ft. as per sale agreement Whether owner occupied or rented or leased out

: :

Rs.

: : :

a. Present stage of constructions b. Report / Valuation from Architect / Engineer Obtained c. Nearby landmark for identification:

Yes

EAST

WEST

NORTH

SOUTH

13.

No

COMMENTS OF VISITING OFFICER

Place:_________________ Date: _________________

_____________________________ SIGNATURE OF BANK’S OFFICIAL NAME : DESIGNATION :

Page | 143

BRANCH:__________________________________ PERIODIC ASSET VERIFICATION REPORT (POST DISBURSEMENT )-IN CASE OF RETAIL LOANS 1. 2.

3. 4 5.

6.

7.

8

Name of the Applicant Address of the place visited :Residence /shop/office Phone No. Date of visit Sanction Details Details of last Disbursement made

: :

: :

Purpose of Loan

Amount of Loan Rs.

Date of Sanction

:

Date: : Amount : Mode : By Bankers Cheque / DD No. Favouring …………………………………. ……………………………… Present outstanding balance Rs……………..(with overdues if any Rs……………………) Whether Invoice & Stamp Receipt Obtained? YES / NO IF YES: Invoice No……………… Dated…………………. Issued by…………………. Dated………………….. Receipt No……………… Details of Goods / Articles / Furniture Purchased & Physically verified (a) Description Make / Model No. Colour Manufactured by In case of Vehicle (b) Type of Vehicle -Scooter / Moped / M-Cycle /Car Make / Model No. Engine No. to be verified Chasis No. from the vehicle Colour of the vehicle Registration No. Condition of Vehicle Blank TTO forms obtained YES /NO Whether Bank's Lien Noted in YES/NO RC Book with RTO Was the Vehicle brought to Branch for Inspection - Yes / No. If Yes, give date…………. Insurance Name of Insurance Co. Valid upto Whether Bank's clause is appearing in Insurance Policy:Yes/No Under comprehensive : Yes/No. In case of Housing Loan : Ready Purchase Take over Purchase of Repairs & Construction of Loan availed for ( √ ) Land Flat of Old Renovation from other house House

bank

Location /address of the Property

Present Status/ Stage of Construction Status of Occupation ( √ ) Value as per valuation report/approx. exp incurrent on repairs/ renovation Date of last valuation Whether Insurance taken under UniHome Care Policy/NIC-Baroda Home Loan Suraksha Bima Policy

9 10

Self Occupied

Yes / No

Rented Out

Vacant

If Yes, date……………………..

Date of Documents Last LAD obtained on Comments of visiting officer:

Place: Date:

…………………………………… (Signature of Bank's Official) NAME: DESIGNATION:

Page | 144

Annexure-21 BANK OF BARODA ………………………………. (Branch Name) (on letter head of branch) ………………………………… (Name of the Panel Advocate) ……………………………. …………………………… …………………………… (Address) Dear Sir, Re:

Your opinion report on the property situated at …………………. belonging to …………………… for creation of equitable mortgage to secure credit facilities to be sanctioned to ……………………………

We are considering following credit facilities to Mr………………………….. Nature of facility

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

Name of Account & Proposed facility

2

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.)

3

Name of mortgagor & his Status in the A/c (Whether Sole proprietor, Partner, Director, Karta, Trustee, Agent or Guarantor or Co-borrower)

4

Whether the mortgagor has sufficient title and capacity to contract for creation of mortgage (Not a minor, Lunatic or undischarged insolvent, etc.)

5

Nature of mortgagor's right or title in the Property(Whether lease hold, free hold, co-owner, or joint owner or any other type-state specifically) and how it is derived

Page | 145

(whether self acquired, ancestral/ inheritance or by succession or otherwise).

6

Whether Mortgagor is in exclusive possession of property proposed to be mortgaged

7

Documents studied/scrutinized (In chronological order)

Sr. No

Type/Nature of Date of No. & Date of Parties Document Execution Registration/Lien in revenue records/ builder's records/ society's records

8

Tracing of title & Chain of title in favour of Mr./Ms.____________ proposed mortgagor(here set out chain of title in detail & in chronology starting from earliest document available. The Nature of document/Deed conveying the title should be mentioned along with the type of right it creates) together with names and descriptions of Parties to the documents

9

Whether title is clear and property is free from any encumbrance (enclose relevant receipts of search) No of Years (30 years normally) for which search made in (a) Subregistrar's/Registrar's Office (b) If Name is mutated in municipal records and (c) If Name is shown in Revenue/ Land records

10

Whether title to properties is clear, unambiguous, marketable & property is saleable

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

Additional documents required/ formalities to be completed by the proposed mortgagor(State specifically in case of flats / properties in coop. societies whether allotment letter, possession letter, share certificate, affidavit, power of attorney, etc is required)

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.______________

Page | 146

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

16

Final certificate/opinion

Please also note the following: (1) (2) (3) (4)

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,

………………. (Branch Manager)

Page | 147

Annexure 2222- Format of Power of Attorney

Page | 148

Page | 149

Page | 150

Annexure –23 Execution of Documents by Power of Attorney: Format of letter to be obtained from the Principal confirming that the documents executed by his Attorney. (To be stamped as Agreement) Date: Place: To The Branch Manager Bank of Baroda _________________ Branch Dear Sir, Sub: Confirmation of Loan Documents executed by Mr/Mrs ……………………………. …………………… my/our constituted attorney for the ……………………………………. facility of Rs…………………………………………..availed by me / us from your Bank. 1. At my / our request Bank of Baroda ……………………. Branch vide their letter No……….. dated ………………………sanctioned me / us following credit facilities on the terms and conditions mentioned therein. I / We have accepted the same on ………………. by putting my / our signature on the said sanction letter: (a) (b) (c) (d) 2. At my/ our request bank has allowed me / us to execute the security documents and creation of security through my constituted attorney, in respect of aforesaid credit facilities sanctioned by the Bank. Accordingly Mr / Mrs ………………………….…. my / our constituted attorney pursuant to Power Of Attorney granted by me on ……………………, executed security documents and created mortgage by deposit of title deeds on …………………., on my / our behalf. 3. Today, I / we have visited your branch and perused following documents executed and mortgage by deposit of title deeds created by Mr / Mrs ……………………………… my / our constituted attorney: (a) (b) (c) (d) 4. I / We hereby confirm and ratify act done / documents executed, mortgage by deposit of title deeds create by Mr / Mrs ………………………………. my constituted attorney in favour of the Bank to secure aforesaid credit facilities granted by the Bank to me / us. The said documents executed and mortgage by deposit of title deeds created / any other documents executed by my / our constituted attorney are valid subsisting and binding on me / us. I / we waive all my /our rights to challenge these documents before any forum and undertake to protect and save bank against all claims, losses, damages, costs, expenses, actions, suits and other proceedings resulting from documents executed by me / us on my / our behalf by my / our power of attorney holder mentioned hereinabove. Signature 1. Mr./Mrs……………………………………. 2. Mr./Mrs..……………………………………

Page | 151

Annexure-24 To be stamped as per the Stamp Act and notarized

SPECIAL POWER OF ATTORNEY TO RECEIVE MORTGAGE DOCUMENTS TO ALL TO WHOM THESE PRESENTS SHALL COME, I / we Mr.…………………………………………………………………………..…………….... …………years, Occupation, Service / business / agriculture, ……………………………………………………..SEND GREETING.

(all names) aged about residing at

WHEREAS: (a)

………………………Branch of ……………………………………………Bank / Financial Institution i.e., the Current Lending Institution (hereinafter referred to as the CLI) had sanctioned housing loan facilities amounting to Rs………………………. to me / us on ………………………and amongst other terms and conditions of the sanction, one of the conditions was to create equitable mortgage of the land and building belonging to …………………………………………………. situated at………………….. more particularly described in the schedule-I as mentioned hereunder and the same was validly created on …………………………. by depositing the original title documents and other link documents with the CLI and the details of the said documents are shown as Schedule-II as mentioned hereunder.

(b)

As per my / our request, Bank of Baroda, ……………………… Branch (herein after referred to as the Bank) has agreed to take over the above Housing Loan account along with the outstanding amount by sanctioning a fresh Housing Loan subject to delivery and deposit of all mortgage documents which are now in the custody of the CLI, and also necessary documents to be executed for the said purpose.

NOW KNOW YOU ALL AND THESE PRESENTS WITNESS THAT I / we (all names) Mr…………………………………………………………………………… do hereby irrevocably nominate, appoint and constitute the Bank to be my / our true and lawful attorney with all authority to do and execute the following acts, deeds and things in my / our name / s and on my / our behalf viz. A.

To demand and receive all original title documents and link documents deposited by me / us ………………………………………………………………. with CLI, along with a covering checklist through an Authorized Officer of the Bank holding an authorization letter from the Bank in this behalf and to give a valid discharge thereof to CLI.

B.

To pay the balance outstanding amount standing in my / our name/s with the CLI by way of a Banker’s cheque / Demand Draft equivalent of the outstanding

Page | 152

amount together with interest and pre-closure charges, if any, on my / our behalf and to receive No Due Certificate from the CLI as regards the repayment of their dues. C.

To receive latest Statement of Account with respect to my / our housing loan account from the CLI.

D.

To sign, seal, execute, deliver, complete, perfect and record an Indenture of Mortgage expressed to be made between myself / ourselves of the One Part and the Bank of the Other Part in respect of the Schedule-I property, in case found desirable, in such form and containing such covenants and conditions as the Bank may deem fit, including the power to sell and to present the same for registration with the Sub-Registrar of Assurances.

E.

To do all other acts and things as may be required to be done to take over the above secured housing loan from the CLI on my / our behalf.

AND I / we hereby ratify and confirm all and whatever my / our said attorney shall or purport to do or cause to be done by virtue of these presents.

IN WITNESS WHEREOF I, Mr. ………………………... have put my / our hand this day of ………………….. 20

Signed and delivered by the within named

In the presence of ________________________

Schedule I

Schedule II

Identified by me

Before me. NOTARY

Page | 153

Annexure- 25

Details of payment of Staff Incentive for generating Leads of Home Loans

Sr. No

Branch Name

Name of Borrower

Date of lead generated by Staff

Details of information /document s received

Details of lead generator (Staff)

Name

EC No.

Parent Branch

Signature

Date of sanction

Amount of Sanction

Date of disbursement

Amount of Disbursem ent

Payment Details

Date of payment

DD/ Ch.No

Amt

Name

Signature

Annexure- 26 Details of payment to Builders for generating Leads of Home Loans

Sr. No

Branch Name

Name of Borrower

Date of lead generated by builder

Details of lead generator (Builder)

Name

Project

Name of Authorised person

Signature

Details of information /document s received

Date of sanction

Amount of Sanction

Date of disbursement

Amount of Disbursem ent

Payment Details

Date of payment

DD/ Ch.No

Amt

Name

Signature

z

11<1> S.

'" ....

.... ....

,.~ ,.~ 3

3

" '"

c

0

S.

0

~

.,'"

a

~ , , :> 0

<1>

;?;' <1>

""., ~ "" ~

<1> Q.

,..

....

[

;. Q.

z

~

"" ~

0 c

3

s.

g , ,. R

0

c

;

'" :I:

,.

5 r;;

0 n

, 0

0;

or

0

a~

5'

'"...

'"

(')

0

a~ 9 ~

»Q. Q.

~. nl

g

I

o:>n §

o 9

~ .,

58

Q.

"

... ::J

8

.. 3

J:

o

c on

s·

;> Q. Q.

.

~

z

!

··· ·· :1'. ··· · · ··

'"9..

"

'" ~

..

S. V>

'

iil

~ ~ '"

.. 0. V> '

~ .. ,.~ :T V>

\t s. :?

~ ~ ~ ~ N

J:

..... 0.

N 0

§.

~ o.

..... z

~ S. N 0

~

r

.:...

:Ii'

F

1:: ~ '" ~ '" -. 0 s- ~ ~
.. .. ~ ..

!" -<

[

!" -< 0

[

'" 3'" '"3 '" ,.:l ~ c-~ ~ '" ~ ~ s. ~ ~ ~ '" c '"§ ..~ ~ g. ~ .. ~ ;; ~3 [ 0.

0.

V>

C>

0.

C>

0.

~~ if ~ '" ii -g ~ ..i<' ~.. 3~ if.,. ~~ .,. 1: n .... 0'~ '" ~ c' ~ '"~ ~ 0- ~ C

0.

0.

:T

....

0'

~'

~ ;; ~ 3' 8 '" '"~ ..3 ~ Q.. 3' ~

0'

0.

0.

0

J: 0

J.

" .. :
.. :;; ..'" ~-~ .<..

'" is

gQ_

S0'

;;

a:

a. o

<

'C

~

~ ~ !":;;

..'" ~. ..it 'C

2-

[ ...

c-<

[ 3'" if

s.

.

'"

~

'C 'C

C

~ 3'

Q

Q

g:

~ ~

b

~ ~

~ ~ ~ ,.~

I I

S.

3

~

;; ~'

C

Q'

5'

0-

"

...

o :l; :0

n

o 3

..

Zrrl~ rrlC'l

ID J:

.... Z

Ja.

o c ;'

0("]

~-'£

;:) :T

'"

fJl

~

.:::!

0

""

("]

rrI

~ ~ Ci

0

1::~ ~~ ..,~~

~fJl~

S

'C

s.

> 0..

ii

Q.

~ '"'"

.

N

0

g :;:

Ci 0

~ :a.

o~""

'"a. 0.

s- ~ ~

N 0

C :0 Q.

..

'C

0.

.. ~

."

0 0..

C

t

ID

"C

g8

~ '"~ ~ =-

:0

;

~.

c ii

0

~

..iil c

Q. Q.

:T

<

1!!

..

:T 0

.. .. s.. ~ .,. g-

'"CI,..

("]

".

0

~

""a 9

w

<

~

0

".

n o

0

""a

:;-

C

.... ..

Z

5

0

t..

N

o

r!'

V>

~ ~ a. 3; ~ :;: ~ .. -< :;r. ~ ~. .. §'" ~ '" ~ .,... ~ ''"" ~ go ~ ~~ g- ;; ..~ ~~. ~ ~ ~ :;: nr ~ ~~ nr ~

..

0

0

;

Z o

J:

~ 0

c

'" ;. fJl

0. 0.

0

~ ~

o

3;

I:)

[

Q

~ ~ ~'" i' S.,. .. 1\~ :t~'"s- ~ -< @' ~ } ..g 3' cr ~ ~ ill~ '"~ ? ~ 0' ~ ?' ~ 0' ? z 0 '!l ~ '" ~ ~ c; :
R

q

:T

0

c

~~ :t. a o c ~

".

..

ill

'" ~'

'"

":0

..3 ~

~ s

..a -

0

'C

~~ .,..~

..g

r:: '" 01 0...,

0.

0. 0.

t"" 0

I:)

..

m

:0

:l

0..

0. 0

-< 0

~

0

c

a

5'

"C

c

£

-
.. s;

'"~ z

.. .,..'" " ;p

C'l C

'< $

.." ;;a ;; .."

;.-

j;l

:l

x

C

'" ~