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A Project Report On Comparative study of The Home Loan Scheme of UCO Bank with

A Project Report On

Comparative study of The Home Loan Scheme of UCO Bank with respect to other banks

Summer Training Project Report submitted in partial fulfillment of the requirements for the

Diploma of

Post Graduate Diploma in Management

2012

Jaipuria Institute Of Management

Noida

Under The Supervision Of:

Prof.M S Kumar

Submitted By:

Siddharth Tripathi

PGDM(G)

PGFA 1147

Under The Supervision Of: Prof.M S Kumar Submitted By: Siddharth Tripathi PGDM(G) PGFA 1147 1 Siddharth

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Siddharth Tripathi PGFA 1147

DECLARATION I hereby state that the dissertation entitled “ Comparative study of The Home Loan

DECLARATION

I hereby state that the dissertation entitled “Comparative study of The Home Loan of UCO Banksubmitted by me in partial fulfillment of the requirements for the award of PGDM(General) is my original work and that it has not previously formed the basis for the award of any other degree diploma fellowship or other similar titles.

Date: June 22, 2012

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Siddharth Tripathi

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Siddharth Tripathi PGFA 1147

ACKNOWLEGEMENT If words are considered to be signs of gratitude then let words convey the

ACKNOWLEGEMENT

If words are considered to be signs of gratitude then let words convey the very same. My sincere gratitude to UCO Bank for providing me with an opportunity to work with Bank and giving necessary directions on doing this project to the best of my abilities. I am highly indebted to Miss Swati Srivastava branch Manager who has provided me with the necessary information and also for the support extended out to me in the completion of this report and her valuable suggestions and comments on bringing out this report in the best way possible.

I would like to extend my thanks to my internal supervisor Prof. M S Kumar Sir , Faculty of JIM, Noida for all the guidance and support received during the course of Project Report and helped me in bringing out this report in its present form.

I would like to pay my humble regards and thanks to all those who directly or indirectly rendered their help in completing this Project Report. I would also like to present a deep bow of gratitude to my family and friends who have been of great help directly and indirectly.

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Siddharth Tripathi

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PGDM (G)

Siddharth Tripathi PGFA 1147

Table of Content S.No Description Page No. 1 Executive Summary 5 2 Chapter I: 6

Table of Content

S.No

Description

Page

No.

1

Executive Summary

5

2

Chapter I:

6

Introduction and Objective of Study

Unique feature of house loan

Documents Required

Home Loan type

Home loan interest rates

3

Chapter II: Introduction of Topic

15

Overview

Credit monitoring policy

Loan schemes

Home loans

4

Chapter III: Research methodology

91

5

Chapter IV: Analysis of data collected

92

6

Chapter V: Suggestion/Recommendations

106

7

Chapter VI: Conclusion

107

8

Chapter VII: Bibliography Annexure

108

109

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EXECUTIVE SUMMARY The aim of this report is to understand one of the methods of

EXECUTIVE SUMMARY

The aim of this report is to understand one of the methods of credit appraisal i.e. Home Loan. To analyze customers perception, preference and satisfaction level about the home loan being offered by UCO bank and comparing it with banks such as HDFC, ICICI, SYNDICATE and LIC HOUSING FINANACE.

To understand customer’s perception, preference and their satisfaction we did personal survey and collected data from it and then analyzed based on the samples collected.

The project also encompasses, identifies the scope and various parameters, a customer would look into while transacting with bank for certain scheme.

like

businessmen, salaried people and others, consideration while opting for any deposits or

Overall

analysis

has

been

done,

keeping

in

mind

the

various

customer

segments

borrowings.

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Siddharth Tripathi PGFA 1147

CHAPTER I INTRODUCTION AND OBJECTIVE OF STUDY A Credit appraisal is an important part of

CHAPTER I

INTRODUCTION AND OBJECTIVE OF STUDY

A Credit appraisal is an important part of determining the eligibility for a home loan, and the quantum of the loan. A prospective borrower has to go through the various stages of the credit appraisal process of the bank. Each bank has its own criteria to satisfy itself on the credit worthiness of the borrower.

The eligibility for the loan that a person can get depends on his credit worthiness, determined in terms of the norms and standards of the bank. Being a crucial step in the loan process, a borrower needs to be careful in planning his financing modes. The credit worthiness, basically, assures the repayment capacity of the borrower - whether the borrower is capable of repaying the loan and dues on time.

Broadly, the information collected is on these aspects:

- Incomes of the applicant and co-applicant

- Age of applicants

- Qualifications

- Family details

- Nature of profession

- Experience

- Employer

- Security of tenure

- Tax history

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- Assets owned and their financing patterns - Additional sources of income - Past loan

- Assets owned and their financing patterns

- Additional sources of income

- Past loan record, if any

- Recurring liabilities

- Investments

- Other present and expected liabilities

The norms differ from bank to bank. Each has certain norms within which a prospective borrower needs to fit to be eligible for the loan. Based on these parameters, the maximum amount eligible is worked out.

Some methods of arriving at loan amount:

Installment -to income ratio A bank applies the installment-to-income ratio (IIR). This helps in finding the loan eligibility of the applicant. It is generally expressed as a percentage. This percentage denotes a portion of the monthly installment on the home loan taken. Usually, the banks fix 33.33 to 40 percent as the ratio. It is assumed that in normal circumstances, a person can pay an instalment up to 33.33 to 40 percent of his salary. For example: Assume the IIR is 33.33 percent and the gross income is Rs 30,000 per month. According to the IIR ratio, the applicant is eligible for a loan where the instalment does not exceed Rs 10,000 per month.

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Fixed obligation to income ratio Banks also calculated the eligibility based on the fixed obligation

Fixed obligation to income ratio Banks also calculated the eligibility based on the fixed obligation to income ratio (FOIR). Here, a bank takes into account the installments of all other loans already availed of by the applicant and still due, including the home loan applied for. This ratio includes all the fixed obligations that a borrower is supposed to meet regularly on a monthly basis. The fixed obligations do not include statutory deductions from the salary such as Provident Fund, professional tax and deductions for investments such as insurance or a recurring deposit. For example, assume the income is Rs 30,000 per month, there is a car loan installment of Rs 4,000, a TV loan installment

of Rs 1,000, and the proposed housing loan instalment is Rs 10,000.

Accordingly, the FOIR is 50 percent - 50 percent of the monthly income. The bank may have a standard of 40 percent of FOIR. So, the total installments the person can pay, as per the bank's FOIR standard is Rs 12,000 per month. As he is already paying Rs 5,000 towards the car and TV loans, he has Rs 7,000 left and the loan eligibility is taken as Rs 7000 per month as the basis of housing loan repayment capacity of the customer. Thus, a backward calculation of the repayment capacity is made to find out the amount to be given as loan.

Loan-to-cost ratio

A bank also computes eligibility on the basis of a loan-to-cost ratio (LCR). This ratio is used to

calculate the loan amount that an applicant is eligible for on the basis of the total cost of the property. This sets the upper limit or the maximum loan amount that a person is eligible for irrespective of the loan eligibility under other criteria. The maximum amount of loan eligible is pegged to the cost or value of the property.

While the loan eligibility as per the other parameters may be higher, the loan amount can't exceed the cost or value of the property. The ratio varies between 70 to 90 percent of the registered value of the property. Loan eligibility is computed on the basis of these parameters that act as a guide to determine the loan amount. Generally, the lowest of these is taken as the loan amount that the applicant is eligible for.

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Purchasing the home of your dreams is not an easy task. Especially when you plan

Purchasing the home of your dreams is not an easy task. Especially when you plan to buy a home on loan. Home loans means that you buy a house on installments. In simpler terms when you want to own a home and cannot afford to pay the amount in lump sum, you can pay it in monthly installments with an interest rate. There are number of companies offer cheap loans at a low interest rate You can avail loan against existing house for renovation or expansion etc.

The demand for home loans will not sag much. The reason is a substantial rise in the income-generating capability of Indian youth. So this particular section will keep the housing loan demand high and increased lending rates can only shelve their plans for some time.

The prime objective of the research report is:-

To know the concept of home loan.

To undertake the comparative analysis of UCO Bank home loan scheme with (HDFC, ICICI, LIC HFL, SYNDICATE bank) in housing loan sector.

To study consumer preference for the above mentioned housing finance players.

To analyze the satisfaction level of banks (HDFC, ICICI, LICHFL, SYNDICATE Bank) Home Loan Customers.

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UNIQUE FEATURES OF HOUSE LOAN  Purpose: For purchase of house from builder/resale and construction/

UNIQUE FEATURES OF HOUSE LOAN

Purpose: For purchase of house from builder/resale and construction/ extension of existing house.

Loan Amount: You can avail for Home loans ranging from Rs.1 lakh to Rs.1oo lakh depending on your eligibility, income, and repayment capacity.

Security: Home loan is a secured loan wherein collateral are required.

Loan Tenor: The maximum loan tenure is 25 years.

So if you are planning to avail a home loan, here are some tips:

Firstly, take your own time and evaluate your expenses and do a market survey about the property buying process. Buying a house, which is way beyond your range, could affect you financially; banks help in financing your dream home via home loans

ELIGIBILITY: Banks determine your eligibility based on your repayment capacity and discuss

about the loan amount upfront. The eligibility for acquiring a home loan is augmented by clubbing income of your father/spouse/mother/son, by clearing your outstanding debts, by stretching your loan tenure, Salaried individuals can increase their eligibility by showing their performance linked income or bonus earned.

Secondly, Do your own analysis and check the impact of your repayment of home loan on your monthly expenditure, as a thumb rule, it is recommended to make sure the EMI of your home loan do not exceed more than 40% of your gross monthly income.

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INTEREST RATES BEST SUITED: An important factor that goes into your EMI calculations in the

INTEREST RATES BEST SUITED: An important factor that goes into your EMI calculations in the interest rates, which may vary from bank to bank, so do compare them. Also do a complete and detailed analysis of the various options like the interest rates i.e. fixed and floating rate of interest.

Thirdly, if two banks give you the same amount of loan but at different interest rates do your math and work out what’s best for you.

Fixed interest loans charge an interest, which remains the same through out the tenure of the loan. This means that the consumer is immune to market risk or the possible upward movement in the interest rates. Hence, fixed rate is a good option when the interest rates are expected to move in the future.

As for Floating rate loan, a consumer is exposed to market risk and his gain or loss depends on the interest rate condition prevailing in the market. Floating rate is beneficial if the interest rate falls in the future. A floating rate is considered non-transparent and is also known as ‘adjustable rate’.

Fourthly, if you decide to opt for a fixed rate loan, you can still switch to a floating rate loan in the future and vice versa as and when rates go in your favors and if you decide to switch, you should take into account the cost of doing so and the interest rate benefits of switching. For a given interest rate, loan with daily or monthly reducing balance is better than an annual reducing balance loan. Interest rates vary depending on the tenure of the loan, the amount of the loan and your personal profile.

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Insurance cover (an added cost) Also, many banks may insist on getting your home insured

Insurance cover (an added cost) Also, many banks may insist on getting your home insured to safeguard their interest. There are various kinds of insurance covers available for you. Apart from getting the mandatory ones you should try to get insurance as per your circumstances. You also have a choice of getting insured from another company without any objection from your bank.

Other costs: The interest rate and EMIs are not the only cost factor. A 1% administration fee and a 1% processing fee on a Rs.10 lakh loan, would amount to Rs.20,000. Processing fees, administration fees, valuation fee, legal fee, is to be paid when you apply for a loan and other fees paid at closing. Many of these fees are negotiable. You should ask for zero processing fees and zero penalty for pre-payment option. If this were not available, then the lowest cost would be better. Make sure you work out as to how much these costs add up to. So even though the interest rate may be lower, it usually adds up to being expensive. If the EMIs come out a lot more than what you can afford on a monthly basis; try to redo the math with changes in the tenure and loan amount (if possible).

DOCUMENT REQUIRED: Most importantly, all deals and offers agreed upon are supported by relevant papers. Self-employed and salaried require different documents to support the deal. So make sure you always ask for a letter on the banks letterhead mentioning the likes of, exact rate of interest, processing fees, pre-payment charges along with interest-schedule. Before signing the documents, make sure you recheck all terms and conditions. Do make sure you understand and agree with each of the clauses in the documents. Do not sign any blank documents. Even if it takes you a few hours to fill-up the form, please do so. Do not leave anything for the executive to fill-up. It’s always better to get a legal opinion from someone on your loan papers. Do not under any circumstance give any false information. This may amount to fraud a d could land you in trouble.

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Penalties: Once you have received the loan do your best to pay it back as

Penalties: Once you have received the loan do your best to pay it back as quickly as possible. But this early payment might invite a pre-payment clause. Banks make their money off the interest they charge and the sooner you pay back a loan the less money you will have to pay in interest. When it comes to Home loans, penalties are binding, like if you choose to pay up your entire money before the tenure, a pre-payment penalty is charged. So you should know about such penalties beforehand to avoid future misunderstanding between you and the bank.

HOME LOAN TYPES

Owning a piece of land or property is a lifetime dream for every individual. There are many home loans provider in the market to make your dream come true. But before you opt for any home loan provider, you need to consider certain factors related to property that you are interested in buying and also about the salient features offered by a home loan provider and also

study some Home Loans and Home Insurance FAQs which helps in applying a Home Loan in India.

And the most important thing is you should know about each and every term related with Home Loans before applying for a loan. It is always advisable to consult a home loan expert or consultant before applying for a home loan or purchasing a property.

You can take different types of home loans like Bridge loans, Home construction loans, Home equity loans, Home extension loans, Home improvement loans, Land purchase loans etc for different schemes available in the market. There are different types of home loans tailored to meet your needs.

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 Home Purchase Loans: These are the basic forms of home loans used for purchasing

Home Purchase Loans: These are the basic forms of home loans used for purchasing of a new house.

Home Improvement Loans: These loans are given for implementing repair works, healing and renovations in a home that has already been purchased.

Home Construction Loans: These loans are available for the construction of a new house.

Home Extension Loans: These loans are given for expanding or extending an existing home. For e.g. addition of an extra room etc.

Home Conversion Loans: These loans are available for those who have financed the present home with a home loan and wish to purchase and move to another home for which some extra funds are required. Through home conversion loan, the existing loan is transferred to the new home including the extra amount required, eliminating the need of pre-payment of the previous loan.

Land purchase loans: These loans are available for purchasing land for both construction and investment purposes.

Bridge Loans: These loans are designed for people who wish to sell the existing home and purchase another one. The bridge loans help finance the new home, until a buyer is found for the home.

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Home Loan Interest Rate

Home Loan Interest Rate If you are keen on acquiring a new house then taking a

If you are keen on acquiring a new house then taking a home loan might be a great option for you. No matter what your requirement the different home loan interest rates and offers made by different banks will surely have an appropriate plan for you. Most of these home loan plans are for salaried or self-employed Resident Indians. You can Get the best deals ever and finance the perfect home from the different nationalized and private banks of India. With the varied offering of house loans and home finance gives you an opportunity to select the perfect home loan as per your needs of a dream home.

The are customized home loan plans for different people and the home loan interest rates are also varies on whether you chose floating or fixed interest rate. The different banks of India offer a plethora of home loans for resident Indians. You can choose from an array of home loan rates like Adjustable Home Loan Interest Rate Home Loan or Fixed Home Loan Interest Rate. But if you want the best of the both world you can even opt for the Part Fixed and Part Floating Home Loans Interest Rate etc.

There are various on line portals where you can compare home loan interest rates of leading banks of India. You can compare and contrast the various floating home loan rate and fixed home loan rates given by the different banks. Low home loan interest rates would in turn make your Equated Monthly Installments (EMIs) which comprises of principal and interest.

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OVERVIEW:

OVERVIEW: CHAPTER II UCO BANK Founded in 1943, UCO Bank is a commercial bank and a

CHAPTER II

UCO BANK

Founded in 1943, UCO Bank is a commercial bank and a Government of India Undertaking. Its Board of Directors consists of government representatives from the Government of India and Reserve Bank of India as well as eminent professionals like accountants, management experts, economists, businessmen etc.

in the Service to Community since 1943.

have more than 2000 Branches spread all over India and Abroad.

also operate two Major International Financial Centres namely Hongkong and Singapore.

have own Correspondents/Agency arrangements all over the world.

undertake Foreign Exchange Business in more than 50 Centres in India.

have Foreign Exchange Dealing Operations at 1 Centres.

MISSION:

To be a Top-class Bank to achieve sustained growth of business and profitability, fulfilling socio-economic obligations, excellence in customer service; through up gradation of skills of staff and their effective participation making use of state-of-the-art technology.

Country-wide presence

Strong Capital Base

A Well Diversified Asset Portfolio

Branch representation in Top 100 Centres (as per deposits) in the country

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VISION:

VISION: To emerge as the most trusted, admired and sought after World class financial Institution and

To emerge as the most trusted, admired and sought after World class financial Institution and to be the most preferred destination for every customer and investor and a place of pride for its employees.

CREDIT MONITORING POLICY:

Our economy has been on a high growth path fuelling demand for credit from various sectors for expansion of existing capacity as well as for setting up new ventures. Banks have been beneficiaries of this demand as finance is necessary to oil the wheels of growth.

Advances of our Bank has grown from Rs.55082 Cr as on 31.03.2008 to Rs.100561 Cr as on 31.03.2011, registering an increase of over 82%, in a short period of three years. However, this period of rapid credit growth has also witnessed an increase in NPAs, thus raising concerns about asset quality. While credit default is unavoidable, it can and should be controlled and kept to the minimum, else it will weaken and threaten the very existence of the banking system.

Maintaining asset quality is one of the key challenges for Banks. To ensure strict vigil on the asset quality is of paramount importance. It calls for early pre-emptive measures and sound monitoring systems. The classification of assets is subject to Prudential guidelines on income recognition and asset classification of RBI. These guidelines have been aligned with the best international practices.

Credit Monitoring Systems is a tool that allows banks to manage, monitor and control performance of assets in a pro active manner to prevent them from becoming NPA. The main function of credit monitoring is to track the health of advance accounts on an on-going real time basis. It will identify irregularities in the accounts such as delay in servicing of interests, excess drawings, etc. It will also follow a system of preparing the list of irregularities in these accounts and create a special watch list depending on the extent of irregularities. These accounts need to be followed up on day to day basis to ensure that the irregularities could be rectified. These actions are needed so that such accounts do not degenerate and fall into NPA category.

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While revising this policy we have considered the transition from manual to CBS environment and

While revising this policy we have considered the transition from manual to CBS environment and introduced the Graded System of Monitoring of accounts, replacing the earlier system of Monthly Credit Monitoring Returns (MCMR). It would be our endeavour to generate reports from the system, based on the requirement and thereby reduce the workload of the branches. The revised guidelines for credit audit, stock audit and restructuring of accounts have also been incorporated, in the policy document.

I would like to emphasise that monitoring does not mean tightening standards and choking off credit from the financial system. It means more steps being instituted to have the brakes on at the right place at the right time. With a hope that the implementation of the policy will help in maintaining the asset quality and meeting the asset management challenges of the present and future effectively.

MONITORING OBJECTIVES / GOALS

MONITORING OBJECTIVES The objectives of Credit Monitoring are to :

a. Oversee delivery of credit initially after compliance with the terms and conditions of sanction and also adherence to the laid down systems and procedures of the Bank.

b. Identify weak accounts and advise the same to Competent Authority for prompt corrective action to protect the quality of the account.

c. Keep track of the health of the credit portfolio of the bank.

d. Developing adequate and appropriate systems & procedures to achieve the above.

e. Insulate the system against entry of accounts with potential for credit default.

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(a)

(a) PROCESS OF MONITORING Identify the eligible new account through New Business Committee and create a

PROCESS OF MONITORING

Identify

the

eligible

new

account

through

New

Business

Committee

and create a barrier for entry of new account with potential for credit default.

(b) Monitoring of performing assets :

1

Pre-Disbursement

Scrutiny of disbursement request based on compliance report submitted by the branch and approval for disbursement by the Competent Authority after confirming compliance of sanction terms.

2

During Disbursement

Watch on branches to ensure end use of funds after due verification and submission of post disbursement compliance report to the Competent Authority.

3

Post- Disbursement

Surveillance on continuous basis to ensure safety of the bank’s fund and maintain the quality of assets by way of physical verification, stock audit, credit audit, legal audit, verification report of lenders’ Engineer, DP maintenance, insurance etc.

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LOAN SCHEMES : Being a Commercial Bank, giving Loans and Advances is among our primary

LOAN SCHEMES :

Being a Commercial Bank, giving Loans and Advances is among our primary activities. Apart from our participation in meeting both Term Loan and Working Capital requirements of Agriculture sector, Trade and Service sector, Large/Medium and Small Scale Industries sector, Infrastructure sector etc. including taking care of their Export/Import and non-fund based needs like Letter of Credit, Bank Guarantee etc., we have a fairly large basket of loan products specially designed to suit your personal needs. Salient features of some of the more attractive Personal Loan Schemes are described below.

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UCO HOME This housing finance scheme brings to you an excellent opportunity to have your

UCO HOME

UCO HOME This housing finance scheme brings to you an excellent opportunity to have your own

This housing finance scheme brings to you an excellent opportunity to have your own house or flat. The scheme has been carefully tailored to suit your requirements and match your capacity. The reasonable rate of interest that you pay will be calculated on reducing balance, i.e. you do not have to pay interest on the loan installments actually repaid from the date of such repayment.

Eligibilityactually repaid from the date of such repayment. You are eligible for a loan under UCO

You are eligible for a loan under UCO HOME individual (salaried/Non-salaried) having

Minimum 21years of age and Maximum 65 years of age inclusive of repayment period.

Purposeand Maximum 65 years of age inclusive of repayment period. Purchase and construction of independent house/ready

Purchase and construction of independent house/ready built flat for residential purpose.

Extension/Repair/Renovation of existing house/flat not more than 50 years old.

Takeover of home loans availed from other banks/FIs.

Furnishing of house to be constructed/acquired by UCO Home Loan borrower or Non-Uco Home loan borrower.

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Quantum of loan The area-specific maximum limits for construction/purchase are as under : Location/Centre For

Quantum of loan

Quantum of loan The area-specific maximum limits for construction/purchase are as under : Location/Centre For For

The area-specific maximum limits for construction/purchase are as under :

Location/Centre

For

For Repair/Extension/ Renovation

construction/Purchase

Metro/Urban/Semi-

Rs. 100 lacs

Rs. 25 lacs

Urban

Rural

Rs. 25 lacs

Rs. 7.5 lacs

Maximum limits for Furnishing are Rs.5.00 lacs in Metro/Urban/Semi-Urban areas/ rural areas.

Loan EntitlementRs.5.00 lacs in Metro/Urban/Semi-Urban areas/ rural areas. Least of the Following: i. 80% of the project

Least of the Following:

i. 80% of the project cost.

ii. Existing deduction +EMI should not exceed 60% of the gross income.

iii. 60 times of net monthly income.

of the gross income. iii. 60 times of net monthly income. Processing Fee 0.5% of the

Processing Fee

0.5% of the loan amount maximum Rs. 15000/-

Processing Fee 0.5% of the loan amount maximum Rs. 15000/- No processing fees for take over

No processing fees for take over loan.

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RepaymentThe maximum period of repayment is 25 years/300 EMI but should not be beyond retirement

Repayment The maximum period of repayment is 25 years/300 EMI but should not be beyond retirement

The maximum period of repayment is 25 years/300 EMI but should not be beyond retirement age, in case of salaried class and 65 years in case of non-salaried class.

Security & Guaranteesalaried class and 65 years in case of non-salaried class.  EMTD OF property financed. 

EMTD OF property financed.

Guarantee of spouse if not co-applicant. In case of unmarried persons, guarantee of PF nominee

No third party guarantee

Prepayment chargeguarantee of PF nominee  No third party guarantee No pre-payment charges are to be levied

No pre-payment charges are to be levied if loan is pre-paid from own source.

2% of the prepaid amount, if the loan is prepaid within 3 years. No prepayment charges thereafter.

Tax Benefitsis prepaid within 3 years. No prepayment charges thereafter. Tax relief on principal and interest components

Tax relief on principal and interest components of this loan would be available as per provisions prevailing under Income Tax Act.

Insuranceavailable as per provisions prevailing under Income Tax Act. Insurance cover on house property under Uco

Insurance cover on house property under Uco Griha Raksha Yojana scheme to cover the risk of damage to home by natural calamities.

Uco Griha Lakshmi Yojana to cover the outstanding loan in case of accidental or natural death of borrower.

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EDUCATION LOAN Scope: The scheme extends a helping hand to meritorious students desirous of pursuing

EDUCATION LOAN

Scope:EDUCATION LOAN The scheme extends a helping hand to meritorious students desirous of pursuing higher study

EDUCATION LOAN Scope: The scheme extends a helping hand to meritorious students desirous of pursuing higher
EDUCATION LOAN Scope: The scheme extends a helping hand to meritorious students desirous of pursuing higher

The scheme extends a helping hand to meritorious students desirous of pursuing higher study either in India or abroad.

desirous of pursuing higher study either in India or abroad. Eligibility Studies in India Graduation courses

Eligibility

Studies in India

Graduation courses leading to degrees like B.A., B.Sc., B.Com. etc.

Post Graduate courses leading to Masters degrees as also Ph.D.

Professional courses in Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer, etc.

Computer Certificate courses of reputed institutes accredited to Universities or DoE.

Courses like ICWA, CA, CFA, etc.

Studies Abroad

Graduation : Job oriented professional / technical courses offered by reputed Universities.

Post Graduation : MCA, MBA, MS, etc.

Courses conducted by CIMA London, CPA in U.S.A., etc.

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Age limitFor Graduation: between 18 & 25 years For Post Graduation: between 21& 28 years For

Age limit For Graduation: between 18 & 25 years For Post Graduation: between 21& 28 years

For Graduation: between 18 & 25 years

For Post Graduation: between 21& 28 years

For SC/ST students: upto 30 years

Eligibilitybetween 21& 28 years For SC/ST students: upto 30 years  should be Indian National 

should be Indian National

Must have secured admission in Regular/ Technical course through selection process.

Quantum of loanin Regular/ Technical course through selection process. Studies in India : Maximum Rs. 10.00 Lac Studies

Studies in India : Maximum Rs. 10.00 Lac

Studies Abroad : Maximum Rs. 20.00 Lac.

SecurityRs. 10.00 Lac Studies Abroad : Maximum Rs. 20.00 Lac. Upto Rs.4.00 lacs – No security

Upto Rs.4.00 lacs No security

Above Rs. 4.00 lacs & upto Rs. 7.50 lacs: collateral security in the form of a suitable 3rd party guarantee

Above Rs. 7.50 lacs : collateral securities of suitable value.

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MarginUpto Rs. 4 Lac - Nil Above Rs. 4 Lac Studies in India - 5%

Upto Rs. 4 Lac - Nil

Margin Upto Rs. 4 Lac - Nil Above Rs. 4 Lac Studies in India - 5%

Above Rs. 4 Lac Studies in India - 5%

Studies Abroad - 15%

Service Charge : There is no processing fee /no service charge : There is no processing fee /no service charge

DisbursementCharge : There is no processing fee /no service charge Disbursement in stages as per the

Disbursement in stages as per the requirement directly to institutions.

Interest Rates- -

Base Rate+3.00% for loan upto Rs. 4.00 lacs

Base Rate+3.75% for more than Rs. 4.00 lacs

Repayment Period4.00 lacs  Base Rate+3.75% for more than Rs. 4.00 lacs The loan shall be repaid

The loan shall be repaid in 5-7 years after moratorium.

Repayment HolidayThe loan shall be repaid in 5-7 years after moratorium. Course period+ 1year or 6 months

Course period+ 1year or 6 months after getting job whichever is earlier.

1% interest concession may be provided, if the interest is serviced during moratorium period.

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Siddharth Tripathi PGFA 1147

UCO CASH This is a Personal Loan scheme to meet the domestic needs like marriage,

UCO CASH

UCO CASH This is a Personal Loan scheme to meet the domestic needs like marriage, medical,

This is a Personal Loan scheme to meet the domestic needs like marriage, medical, traveling and other social obligations.

Eligibilitymarriage, medical, traveling and other social obligations. A permanent employee in Govt. / Semi-Govt. / Reputed

medical, traveling and other social obligations. Eligibility A permanent employee in Govt. / Semi-Govt. / Reputed

A permanent employee in Govt. / Semi-Govt. / Reputed Public / Private Ltd. Co. /College / Universities / other recognized institutions / PSU and have completed minimum 3 years in the organization having salary tie-up arrangement with our branches. Net take home pay should not be less than 40% of gross salary after deduction of PF, IT and other statutory deductions including proposed EMI. Regular income may also be reckoned for eligible quantum.

Regular income may also be reckoned for eligible quantum. Quantum of loan 90% of the proposed

Quantum of loan

90% of the proposed expenditure or Rs. 2 Lacs whichever is lower. Additional amount may be sanctioned within the quantum ceiling to the existing eligible borrowers.

the quantum ceiling to the existing eligible borrowers. Security Loan will be on clean basis with

Security

Loan will be on clean basis with two guarantors Spouse and other than Spouse having equal income with that of the applicant.

than Spouse having equal income with that of the applicant. Repayment The loan amount with interest

Repayment

The loan amount with interest is repayable in 48 EMIs for men and 60 EMIs for women through salary deduction of employee borrower, but one year before retirement.

of employee borrower, but one year before retirement. Service Charge : 1% (minimum Rs.750/-) 27 Siddharth

Service Charge : 1% (minimum Rs.750/-)

27

Siddharth Tripathi PGFA 1147

UCO EARNEST MONEY DEPOSIT LOAN SCHEME Loan scheme for financing for Earnest Money Deposit for

UCO EARNEST MONEY DEPOSIT LOAN SCHEMELoan scheme for financing for Earnest Money Deposit for booking housing plots/flats offered by various

Loan scheme for financing for Earnest Money Deposit for booking housing plots/flats offered by various Urban/Metropolitan Development Authorities & Housing Boards.

EligibilityDevelopment Authorities & Housing Boards. Indian residents having regular documented source of income.

Indian residents having regular documented source of income. Minimum 21 years of age Singly/Jointly as permitted by State Housing Boards/Urban Development Authority/Metropolitan Development Authority. The facility is to be allowed to only those applicants who fulfill all the eligibility criteria under UCO Shelter Scheme.

Amount of Loanall the eligibility criteria under UCO Shelter Scheme. Maximum not to exceed 80% of the EMD.

Maximum not to exceed 80% of the EMD.

Processing ChargeScheme. Amount of Loan Maximum not to exceed 80% of the EMD. Rs. 300.00 upfront per

Rs. 300.00 upfront per application

Margin - 20%

Margin - 20%

Interest Rates - 9.00% (Fixed)

Interest Rates - 9.00% (Fixed)

Prerequisites-

Prerequisites-

Letter of undertaking to be obtained from SHB/UDA/MDA of having noted Bank's lien and refund the amount through UCO Bank in case of unsuccessful applicants

28

Siddharth Tripathi PGFA 1147

 In case of allotment of plot, housing loan under UCO Shelter can be availed

In case of allotment of plot, housing loan under UCO Shelter can be availed by the

Eligible Borrowers

Senior Citizens of India.

Purpose

Supplementing Senior Citizen’s Income

Loan Amount

Based on valuation of the property and age of the borrower Maximum Rs.50 lacs

Period of Loan

Minimum 5 years and maximum 15 years.

Mode of Disbursement

Monthly/Quarterly with fixed/increasing Equated monthly Disbursement with an option to avail One-time lump sum payment after 12 months from the first disbursement during entire tenure of 15 years as per choice of the borrower.

Security

Equitable Mortgage of the residential property owned & self occupied by the Senior Citizen borrower.

Rate of Interest

10.50% (fixed) with reset clause after 3 years.

Repayment

The outstanding loan will be due when the last borrower dies/permanently moves out of the house/would like to sell the home.

Loan will be liquidated by sale of property.

Option available with the legal heir(s) to repay the loan and redeem, the house property.

applicants. In such case the loan for EMD shall be adjusted against the loan granted for purchase of land and construction of house thereon.

for purchase of land and construction of house thereon. Repayment - 24 monthly installments 29 Siddharth

Repayment- 24 monthly installments

29

Siddharth Tripathi PGFA 1147

UCO SWABHIMAN - REVERSE MORTGAGE LOAN MORTGAGE LOAN SCHEME FOR SENIOR CITIZEN Bank introduces UCO

UCO SWABHIMAN - REVERSE MORTGAGE LOAN MORTGAGE LOAN SCHEME FOR SENIOR CITIZENBank introduces UCO Reverse Mortgage Loan Scheme for Senior Citizens, under Reverse Mortgage a Senior

Bank introduces UCO Reverse Mortgage Loan Scheme for Senior Citizens, under Reverse Mortgage a Senior Citizen, owning a house/flat, can avail of a monthly stream of Income against the mortgage of his/her property while remaining the owner and occupying the house throughout his/her lifetime, without repayment or servicing of the loan.

Interest Subsidy Scheme for Housing the Urban Poor (ISHUP)lifetime, without repayment or servicing of the loan. 'Affordable Housing for All' is an important policy

'Affordable Housing for All' is an important policy agenda of the Government of India. Accordingly The Cabinet Committee for Economic Affairs has approved an Interest Subsidy Scheme for Housing the Urban Poor in order to ameliorate the living conditions of Economically Weaker Section/LIG population in urban areas. Primary objective of the scheme is to provide interest subsidy support.

Objective:

The key objective of the scheme is to enable Economically Weaker Sections (EWS) and Low Income Group (LIG) households to avail affordable housing loans for purchase of house/construction of new house.

Definition:

a) EWS- Economically Weaker Sections are those households having monthly income upto

Rs.3300/-

b) LIG- Low Income Groups are those households having monthly income between Rs.3301/- to

Rs. 7300/-

30

Siddharth Tripathi PGFA 1147

Target Group:

Target Group: Individuals /NGOs for on lending to their group members. Preference will be given to

Individuals /NGOs for on lending to their group members. Preference will be given to SCs, STs, Minorities, Person with disabilities and Women beneficiaries in accordance with their proportion in the total population of city/urban agglomerate during the 2001 census.

Applicants planning to form cooperative group housing societies or organizations like Employees Welfare Housing, Labour Housing, etc. should be given preference and whenever possible construction of houses by such cooperatives by way of 1+3 storied buildings should be promoted so that cost of land is shared among beneficiaries. However, this is not a mandatory requirement. Both individuals as well as group Housing borrowers are equally eligible under the scheme.

Target Borrower:

Identification of beneficiaries will be undertaken by Urban Local Bodies or Local Nodal Agencies and they will assist the borrowers in paper works and procedure of bank loan. However the borrower would be free to approach and negotiate a loan under the scheme directly with the bank branch.

Preference:

Preference will be given to Scheduled Caste, Scheduled Tribe, Minorities, Person with disabilities and Women beneficiaries in accordance with their proportion in the total population of the city/urban agglomerate during the 2001 census

31

Siddharth Tripathi PGFA 1147

Stipulations:

Stipulations: The ultimate beneficiaries should not own a house in his/her name or in the name

The ultimate beneficiaries should not own a house in his/her name or in the name of his/her spouse or any dependent child. But such beneficiaries should own land in his name in case of application for construction of new house.

Area of operation:

Urban area. Zonal Offices will be advised to submit us a list of branches at urban area for implementation of the scheme.

Nodal Agency:

NHB and HUDCO were selected by the Government of India to act as intermediary financial institutions that would be responsible for administering the subsidy. Before implementation the Bank has to sign a MOU with any of the two organizations. We have signed MOU with NHB.

Loan amount:

a) EWS- Maximum loan of Rs.1 lac ( Rs one Lac Only) for a house of at least 25 sq mts.

b) LIG- Maximum loan of Rs.1.60 lac( Rs one Lac sixty thousand Only) for a house of at least

40 sq mts. However subsidy will be available for loan upto Rs. 1 lac only.

Disbursement:

Disbursement will be made on a phased manner depending upon the progress of construction. Branch will monitor the construction of the dwelling units financed under the scheme, including the approvals for the building design, infrastructure facilities etc. as also the quality of the construction and verify through site visits etc. the expenditure incurred upto different stages of construction. In case of construction disbursement may be done by debiting the respective loan account and crediting the savings bank account of the borrower. However in case of purchase of

32

Siddharth Tripathi PGFA 1147

a ready built house the payment should be made directly to the vendor by issuing

a ready built house the payment should be made directly to the vendor by issuing Demand Draft/ Pay Order as the case may be by debiting the loan account of the borrower.

Rate of Interest:

Interest @8.50% p.a. for first 5 years with a provision to reset after 5 years from the date of drawal of first installment for all loan under the scheme.

Sanctioning Authority:

All the loan applications under the scheme will be processed and sanctioned at the Retail Processing Centres at Zonal Offices and in case there is no Retail Processing Centres at any Zonal Office, at the branches identified by the respective Zonal Office. On receipt of the sanctioned proposals the branch will disbursed the loan following all the stipulation noted by the Retail Processing Centres at Zonal Office/Processing Cell.

However before sanctioning any loan it should be ensured that the borrower have sufficient repaying capacity based on the average monthly income of the applicant for last three years and monthly family expenditure depending upon the size of family.

Pre-payment charges:

There will be no pre-payment charges for any loan sanctioned under the scheme.

Subsidy:

The subsidy will be 5% p.a. on interest charged on the admissible loan amount for both EWS and LIG, over the full period of the loan for construction or acquisition of a new house.

The Net Present Value (NPV) of the subsidy will be arrived at on the basis of notional discount rate of 9% p.a. (equivalent to Government Security rate) for the period of the loan and on the interest chargeable at the time the loan is contracted.

33

Siddharth Tripathi PGFA 1147

The subsidy will be credited upfront to the borrowers account and interest will be calculated

The subsidy will be credited upfront to the borrowers account and interest will be calculated on the net amount of loan at the agreed rate of interest.

Procedure for claiming Subsidy:

Participating branches will claim interest subsidy for the entire period of any loan disbursed during the quarter to Head Office, Priority Sector Department through their respective Zonal Offices.

Branches should submit their claim within 3 days of close of a quarter to their respective Zonal Offices and the Zonal Offices in turn will submit it to Head Office, Priority Sector Department within 7 days of close of a quarter.

Repayment:Loan will be repaid in 180 to 240 EMI depending upon the income of the borrower. However branches may prefer for 20 years repayment, to get full benefits of Interest Subsidy and lower EMI.

Equated Monthly Installments (EMI )

Loan will be repaid as per following EMI Chart

Particulars

Table-1

Table-2

Loan Amount

Rs.1,00,000=00

Rs.1,60,000=00

Rate of Interest

@8.50% ( Fixed )

@8.50% (Fixed )

Terms of Repayment

180 months

240 months

180 months

240 months

Subsidy per borrower

Rs. 45,443=00

Rs.63,693=00

Rs. 45,443=00

Rs.63,693=00

NPV of Subsidy

Rs.29,112=00

Rs.35,458=00

Rs.29,112=00

Rs.35,458=00

EMI

Rs. 698=00

Rs. 560=00

Rs.1,289=00

Rs.1,081=00

34

Siddharth Tripathi PGFA 1147

Security:

Security: a) Primary- Mortgage of the dwelling house b) Collateral/Third Party Guarantee: NIL Documents: Loan Application

a) Primary- Mortgage of the dwelling house

b) Collateral/Third Party Guarantee: NIL

Documents:

Loan Application form duly vetted by urban local bodies along with the following;

Income certificate issued from the ULB

Copy of the land Records

Copy of updated payment receipt of Government revenues

Non-encumbrance Search Certificate.

Process Note

A declaration from the borrower having been understood the impact of Fixed/Floating Rate of

Interest.

Supervision:

It should be ensured that the housing unit is completed within one year period from the start of construction. On a half yearly basis a certificate of utilization of subsidy and also a certificate

in relation to the progress of the construction leading up to the completion of the housing unit

have to be submitted. Branch will have to submit a certificate on completion of the housing unit.

Processing Charges:

There will be no processing charges for any loan sanctioned under the scheme.

Classification:

All loans sanctioned under the scheme will be classified as Priority Sector Advance under Sub category Housing

35

Siddharth Tripathi PGFA 1147

LOAN INTEREST RATES:

LOAN INTEREST RATES : A Interest rate Structure consequent upon revision of BASE RATE to 10.75%

A Interest rate Structure consequent upon revision of BASE RATE to 10.75% p.a. with monthly rest effective from 01.08.2011

 

Rate of Interest as per BASE RATE System

 

Spread

 

of

Effective

Particulars

Base

Rate

Rate

 

w.e.f. 01.08.2011

10.75%

 
A Interest Rate Structure for Priority Sector (Secured) Advances: 1 DRI Advances 4.00% 2 Agricultural
A Interest Rate Structure for Priority Sector
(Secured) Advances:
1 DRI Advances
4.00%
2 Agricultural Advances
a) Total Funded Exposure up to Rs. 50,000
1.75%
12.50%
b) Total Funded Exposure more than Rs 50,000 and up
2.25%
13.00%
to Rs 2 lacs
c)
Total Funded Exposure more than Rs 2 lacs and up
3.25%
14.00%
to Rs 5 lacs
d)
Crop loans up to Rs.3 lacs where Govt. subsidy is
8.50%

36

Siddharth Tripathi PGFA 1147

available. $ e) Total Funded Exposure more than Rs 5 lacs but up    
available. $
available. $

e)

Total Funded Exposure more than Rs 5 lacs but up

   

to Rs 25 lacs

 

Facilities having Maturity of less than 3 years

3.80%

14.55%

Facilities having Maturity of 3 years or more 4.30% 15.05%
Facilities having Maturity of 3 years or more
4.30%
15.05%
 

f)

Total Funded Exposure more than Rs 25 lacs

   
   

Facilities having Maturity of less than 3 years

As per Credit rating

   

Facilities having Maturity of 3 years or more

3

Interest Rates For Advances to Micro, Small & Medium Enterprises Sector.

   

Range of Loans & Advances

Spread over Base Rate

Final lending Rate

 

(Total Funded Exposure)

Base Rate

10.75%

 
 

Upto Rs. 5 lacs

1.00%

 

11.75%

 

Above Rs5 lacs and up to Rs25 lacs

3.00%

 

13.75%

Above Rs.25 lacs and upto Rs.1 Cr. 3.50% 14.25%
Above Rs.25 lacs and upto
Rs.1 Cr.
3.50%
14.25%
Above Rs.1 Cr. as per Credit Rating >Rs.1 Cr. & upto Rs.5 Cr. >Rs5 Cr.

Above Rs.1 Cr. as per Credit Rating

>Rs.1 Cr. & upto Rs.5 Cr.

>Rs5 Cr. & upto Rs.10 Cr.

37

Siddharth Tripathi PGFA 1147

  Spread Final Spread Final over Rating over Base lending Base lending Rate Rate
 

Spread

Final

Spread

Final

over

Rating

over Base

lending

Base

lending

Rate

Rate

Rate

Rate

Base Rate

10.75%

 

10.75%

 

A++

3.50%

14.25%

4.50%

15.25%

A+

3.60%

14.35%

4.60%

15.35%

A

3.75%

14.50%

4.75%

15.50%

B+

3.90%

14.65%

4.90%

15.65%

B

4.00%

14.75%

5.00%

15.75%

B-

4.50%

15.25%

5.50%

16.25%

C

5.50%

16.25%

6.50%

17.25%

Above Rs.10 Cr. As per Credit Rating /Tenor for General Advances

1. Concessions in Rate of Interest , under Special Package for the exposure to Micro, Small & Medium Enterprises shall no longer be applicable.

2. Branches to ensure before applying the above rates of interest that the borrowers meet the ligibility criteria meant for Micro, Small and Medium Enterprises.

All other Priority Sector Advances

 

a) Total Funded Exposure up to Rs. 50,000

 

1.75%

12.50%

b) Total Funded Exposure more than Rs 50,000 and up

2.25%

13.00%

38

Siddharth Tripathi PGFA 1147

to Rs 2 lacs     c) Total Funded Exposure more than Rs 2 lacs

to Rs 2 lacs

   

c)

Total Funded Exposure more than Rs 2 lacs and up

   

to Rs 5 lacs

3.80%

14.55%

d)

Total Funded Exposure more than Rs 5 lacs but upto

   

Rs 25 lacs

 

Facilities having Maturity of less than 3 years

4.00%

14.75%

 

Facilities having Maturity of 3 years or more

4.50%

15.25%

e)

Total Funded Exposure more than Rs 25 lacs

   
 

Facilities having Maturity of less than 3 years

As per Credit rating

 

Facilities having Maturity of 3 years or more

As per Credit rating

Notes:

1. Total funded exposure means total of all fund based facilities allowed to a borrower.

2. Where total exposure is above Rs 25 lacs, applicable interest rate should be based on credit rating of the account and interest rate structure as per credit rating schedule would apply except in case of MSE sector where it is above Rs. 1 crore.

3. Maturity period for Cash Credit and working capital demand loan may be taken as one year.

4. The rate of interest mentioned above would be applicable for all priority sector accounts. Rates advised in different schemes circulated earlier would stand superceded with immediate effect.

5. The above rates should be applied with monthly rest excepting in case of DRI and agriculture advances where the above rates may be applied with half yearly rest. Crop loans, unless overdue / restructured, will carry simple rate of interest. The interest rates would be applied with annual rests in case of following agricultural advances:

o Cultivation of Sugarcane, Banana and Papaya

39

Siddharth Tripathi PGFA 1147

o Development of Horticulture & Plantations Crops o Tank Fishery (Raring) 6. Credit rating of

o

Development of Horticulture & Plantations Crops

o

Tank Fishery (Raring)

6. Credit rating of all accounts, under the category of MSE, with aggregate FB & NFB exposure of Rs. 25 lacs and above shall be carried out as per present practice. However, rate of interest shall be applicable as per the above interest rate structure.

7. MSE sector includes i) Laghu Udyami Credit Card, ii) Artisan Credit Card, iii) Prime Minister Employment Generation Programme (PMEGP), iv) Collateral free loans under Credit Guarantee Trust Fund for Micro and Small Enterprises (CGTMSE), v) Loans under Technology Upgradation Fund Scheme for Textile Units (TUFS), vi) Swarozgar Credit Card Scheme, vii) UCO Shilpa Udyog, viii) UCO Vishwakarma Yojna, ix) UCO Mahila Shilpa Udyog Scheme, x) Composite Loan Scheme to MSE Units, xi) Scheme for financing Handloom Weavers Group (HWGs), xii) Loans under credit linked capital subsidy scheme for technology upgradation, xiii) UCO Channel Scheme, xiv) Scheme for fod processing industry.

Rate of Interest as per BASE RATE System Particulars Spread of Base Rate Effective Rate
Rate of Interest as per BASE
RATE System
Particulars
Spread of Base
Rate
Effective Rate
10.75%
B
Educational Loans
Upto Rs 4 lacs
3.00%
13.75%
More than Rs.4 lacs
3.75%
14.50%
Students satisfying DRI norms - Any
Amount
4.00%
Students satisfying 60% handicap criteria
4.00%

40

Siddharth Tripathi PGFA 1147

- Any Amount C Interest Rate Structure for Special Category (Secured) Advances:   a) Non
- Any Amount C Interest Rate Structure for Special Category (Secured) Advances:
- Any Amount
C
Interest Rate Structure for Special
Category (Secured) Advances:
 

a)

Non Priority Sector Personal Loans

   
 

Facilities having Maturity of less than 3 years

7.50%

18.25%

 

Facilities having Maturity of 3 years or more

8.00%

18.75%

 

b)

Loans to individuals against Shares

   
 

Facilities having Maturity of less than 3 years

4.50%

15.25%

 

Facilities having Maturity of 3 years or more

5.00%

15.75%

 

c)

Margin Trading Finance

   
 

Facilities having Maturity of less than 3 years

7.50%

18.25%

 

Facilities having Maturity of 3 years or more

8.00%

18.75%

 

d)

Film Finance

   
 

Facilities having Maturity of less than 3 years

8.40%

19.15%

 

Facilities having Maturity of 3 years or more

8.90%

19.65%

41

Siddharth Tripathi PGFA 1147

e) Film Finance – With 75% or more Liquid Securities     Facilities having Maturity

e) Film Finance With 75% or more Liquid Securities

   

Facilities having Maturity of less than 3 years

7.40%

18.15%

Facilities having Maturity of 3 years or more 7.90% 18.65%
Facilities having Maturity of 3 years
or more
7.90%
18.65%
 

Loans to Landlords of Bank Premises

   
 

Upto Rs.2 lac

5.50%

16.25%

 

Above Rs.2 lac upto and inclusive of Rs.5 lac

5.90%

16.65%

 

Above Rs.5 lac upto and inclusive of Rs.10 lac

6.40%

17.15%

Above Rs.10 lac 6.80% 17.55%
Above Rs.10 lac
6.80%
17.55%

Finance granted to intermediary agencies (*)

   

For on-lending to ultimate beneficiaries and agencies (as indicated below excluding those of housing) providing input support.

4.50%

15.25%

Finance granted to housing finance intermediary agencies for on- lending to ultimate beneficiaries.

4.50%

15.25%

Loans under refinance schemes of term

Interest to be charged as per

42

Siddharth Tripathi PGFA 1147

  lending institutions stipulations of the Refinancing Agencies   Note:   Interest rate on
 

lending institutions

stipulations of the Refinancing Agencies

 

Note:

 

Interest rate on refinance for "Self- Help Groups" may be fixed on the basis of per capita size of the loan. They will not receive any additional interest rate reduction.

 

(*) List of Intermediary Agencies

1

State sponsored organizations for on-lending to weaker Sections. Weaker sections include:

 

i. Small & marginal farmers with landholdings of 5 acres or less, landless labourers, tenant farmers and share croppers.

 

ii. Artisans, village and cottage industries where individual credit requirements do not exceed Rs 25,000.

 

iii. Small and marginal farmers, sharecroppers, agriculture and non- agriculture labourers, rural artisans and families living below the poverty lines are the beneficiaries. The family income should not exceed Rs 11,000 per annum.

 

iv. Scheduled castes and scheduled tribes.

 

v. Beneficiaries are persons whose family income from all sources does not exceed Rs 7,200 per annum in urban or semi-urban areas or Rs 6,400 per annum in rural areas. They should not own any land or the

43

Siddharth Tripathi PGFA 1147

size of their holdings does not exceed one vi. Beneficiaries under scheme of liberation and

size of their holdings does not exceed one

vi. Beneficiaries under scheme of liberation and rehabilitation of scavengers (SLRs).

vii. Advances granted to Self- Help Groups (SHGs) for reaching the rural poor.

2

Distribution of agricultural inputs/implements.

3

State Financial Corporations (SFCs) / State Industrial Development Corporations (SIDCs) to the extent they provide credit to weaker sections.

4

National Small Industries Corporations (NSIC).

5

Khadi and Village Industries Commission (KVIC).

6

Agencies involved in assisting the decentralized sector.

7

State sponsored organizations for on-lending to weaker sections.

8

Housing and Urban Development Corporation Ltd (HUDCO).

9

Housing Finance Companies approved by National Housing Bank (NHB) for refinance.

10

State sponsored organizations for SCs / STs (for purchase and supply of inputs to and / or marketing output of the beneficiaries of these organizations).

11

Micro-Finance Institutions, Non-Government Organizations (NGOs) on- lending to SHGs.

Rate of Interest as

44

Siddharth Tripathi PGFA 1147

    per BASE RATE System       Spread     Effective   Particulars
   

per BASE RATE System

 
   

Spread

   

Effective

 

Particulars

of Base

Rate

 

Rate

10.75%

D

Interest Rate Structure for General (Secured) Advances:

   

i)

Total Funded Exposure upto Rs. 2 lacs

   
 

Facilities having maturity of less than 3 years

4.50%

15.25%

Facility having Maturity of 3 years or more 5.00% 15.75%
Facility having Maturity of 3 years or more
5.00%
15.75%

ii)

Total Funded Exposure more than 2 lacs to Rs. 25 lacs

 
 

Other than NBFCs

 
 

Total Funded Exposure -

 
 

Facilities having Maturity of less than 3 years

6.00%

16.75%

Facilities having Maturity of 3 years or more 6.50% 17.25%
Facilities having Maturity of 3 years or more
6.50%
17.25%
 

NBFCs

 
 

Facilities having Maturity of less than 3 years

6.50%

17.25%

Facilities having Maturity of 3 years or more 7.00% 17.75%
Facilities having Maturity of 3 years or more
7.00%
17.75%

iii)

Total Funded Exposure more than Rs 25 lacs

   

45

Siddharth Tripathi PGFA 1147

Facilities having Maturity of less than 3 years As per Rating and Tenor Facilities having

Facilities having Maturity of less than 3 years

As per Rating and Tenor

Facilities having Maturity of 3 years or more

As per Rating and Tenor

Total Funded Exposure more than Rs 25 lacs (Facilities having maturity less than 3)

CREDIT RATING *

   

A++

4.40%

15.15%

A+

4.90%

15.65%

A

5.80%

16.55%

B+

6.30%

17.05%

B

7.30%

18.05%

B-

7.80%

18.55%

C 8.00% 18.75%
C
8.00%
18.75%

Total Funded Exposure more than Rs 25 lacs (Facilities having maturity of 3 years or more)

CREDIT RATING*

A++

4.90%

15.65%

A+

5.40%

16.15%

A

6.30%

17.05%

B+

6.80%

17.55%

46

Siddharth Tripathi PGFA 1147

B 7.80% 18.55% B- 8.30% 19.05% C 8.50% 19.25% Note: In respect of accounts with
B 7.80% 18.55% B- 8.30% 19.05% C 8.50% 19.25% Note: In respect of accounts with
B
7.80%
18.55%
B-
8.30%
19.05%
C
8.50%
19.25%
Note:
In respect of accounts with total funded exposure of Rs 25 lacs and above
Interest Rate is to be based on credit rating assessed in terms of Bank’s extant
directives.
Rate of Interest on Working Capital Demand Loan (WCDL) will be the same
as that of the respective Cash Credit rate.
Rate of Interest
as per BASE
RATE System
Spread
Effective
Particulars
of Base
Rate
Rate
10.75%
E Mid Market and other Schemes
1 UCO Shopper / Shopper Tie up
5.40%
16.15%
2
UCO Car
a) New Car - General Category
3.00%
13.75%
b) Used Car - General Category
4.00%
14.75%
c) New Car - Full collateral / Salary Tie up / Doctor /
2.50%
13.25%

47

Siddharth Tripathi PGFA 1147

Medical Practioner d) Used Car - Full collateral / Salary Tie up / Doctor /
Medical Practioner d) Used Car - Full collateral / Salary Tie up / Doctor /
Medical Practioner
d) Used Car - Full collateral / Salary Tie up / Doctor /
3.50%
14.25%
Medical Practioner
3
UCO Cash
5.40%
16.15%
UCO Cash – Women 4.40% 15.15% 4 UCO Mortgage 6.30% 17.05% 5 UCO Pensioner 4.20%
UCO Cash – Women
4.40%
15.15%
4 UCO Mortgage
6.30%
17.05%
5 UCO Pensioner
4.20%
14.95%
6 UCO Rent
5.40%
16.15%
7 UCO Trader
3.75%
14.50%
8 UCO Securities
3.10%
13.85%
9
UCO Doctor
a) General Category
3.60%
14.35%
b) 100% or more collateral
3.10%
13.85%
Rate of Interest
as per BASE
RATE System
Spread
Effective
Particulars
of Base
Rate
Rate
10.75%

48

Siddharth Tripathi PGFA 1147

10 UCO 2-Wheeler a) General Category 4.25% 15.00% b) Full Liquid Collateral 3.25% 14.00% c)
10 UCO 2-Wheeler a) General Category 4.25% 15.00% b) Full Liquid Collateral 3.25% 14.00% c)
10
UCO 2-Wheeler
a) General Category
4.25%
15.00%
b) Full Liquid Collateral
3.25%
14.00%
c)
50% Liquid Collateral
3.75%
14.50%
11 UCO Swabhiman
2.50%
13.25%
12 UCO Earnest Money
1.30%
12.05%
13 Commercial Real Estate
5.90%
16.65%
14 UCO Real Estate
5.90%
16.65%
15
Commercial Vehicle Finance Scheme
Upto Rs. 5 lacs
1.30%
12.05%
Above Rs.5 lacs and upto Rs.25 lacs
3.10%
13.85%
Scheme for financing marble and other stone processing units in the state of Rajasthan
Scheme for financing marble and other stone processing
units in the state of Rajasthan
F Interest Rate Structure: For HOME LOAN (earlier UCO Shelter)
F Interest Rate Structure: For HOME LOAN (earlier
UCO Shelter)
1) Floating rate loans
1)
Floating rate loans
a) Floating rate loans (upto & inclusive of Rs.20 lacs)
a) Floating rate loans (upto & inclusive of Rs.20
lacs)
Upto & inclusive of 5 years
Upto & inclusive of 5 years

49

Siddharth Tripathi PGFA 1147

Margin 25% or more 0.50% 11.25% Margin less than 25% 1.00% 11.75% Above 5 years
Margin 25% or more 0.50% 11.25%

Margin 25% or more

0.50%

11.25%

Margin less than 25% 1.00% 11.75%
Margin less than 25%
1.00%
11.75%

Above 5 years but upto 10 years

   

Margin 25% or more

0.75%

11.50%

Margin less than 25% 1.25% 12.00%
Margin less than 25%
1.25%
12.00%

Above 10 years but upto 15 years

   

Margin 25% or more

1.00%

11.75%

Margin less than 25% 1.50% 12.25%
Margin less than 25%
1.50%
12.25%

Above 15 years but upto 20 years

   

Margin 25% or more

1.00%

11.75%

Margin less than 25% 1.50% 12.25%
Margin less than 25%
1.50%
12.25%
Above 20 years but upto 25 years Margin 25% or more 1.75% 12.50% Margin less
Above 20 years but upto 25 years
Margin 25% or more
1.75%
12.50%
Margin less than 25%
2.00%
12.75%
b) Floating rate loans (Above Rs.20 lacs but upto &
inclusive of Rs.30 lacs)
Upto & inclusive of 5 years
Margin 25% or more
0.75%
11.50%
Margin less than 25%
1.25%
12.00%

50

Siddharth Tripathi PGFA 1147

Above 5 years but upto 10 years     Margin 25% or more 1.00% 11.75%

Above 5 years but upto 10 years

   

Margin 25% or more

1.00%

11.75%

Margin less than 25% 1.50% 12.25%
Margin less than 25%
1.50%
12.25%

Above 10 years but upto 15 years

   

Margin 25% or more

1.25%

12.00%

Margin less than 25% 1.75% 12.50%
Margin less than 25%
1.75%
12.50%

Above 15 years but upto 20 years

   

Margin 25% or more

1.50%

12.25%

Margin less than 25% 2.00% 12.75%
Margin less than 25%
2.00%
12.75%

Above 20 years but upto 25 years

   

Margin 25% or more

1.75%

12.50%

Margin less than 25% 2.25% 13.00% c) Floating rate loans (Above Rs.30 lacs but upto
Margin less than 25%
2.25%
13.00%
c) Floating rate loans (Above Rs.30 lacs but upto &
inclusive of Rs.50 lacs)

Upto & inclusive of 5 years

   

Margin 25% or more

1.25%

12.00%

Margin less than 25% 1.75% 12.50%
Margin less than 25%
1.75%
12.50%

Above 5 years but upto 10 years

   

Margin 25% or more

1.50%

12.25%

51

Siddharth Tripathi PGFA 1147

Margin less than 25% 2.00% 12.75% Above 10 years but upto 15 years    
Margin less than 25% 2.00% 12.75%
Margin less than 25%
2.00%
12.75%

Above 10 years but upto 15 years

   

Margin 25% or more

1.75%

12.50%

Margin less than 25% 2.25% 13.00%
Margin less than 25%
2.25%
13.00%

Above 15 years but upto 20 years

   

Margin 25% or more

2.00%

12.75%

Margin less than 25% 2.50% 13.25%
Margin less than 25%
2.50%
13.25%

Above 20 years but upto 25 years

   

Margin 25% or more

2.00%

12.75%

Margin less than 25% 2.50% 13.25% d) Floating rate loans (Above Rs.50 lacs)
Margin less than 25%
2.50%
13.25%
d) Floating rate loans (Above Rs.50 lacs)
Upto & inclusive of 5 years Margin 25% or more 1.50% 12.25% Margin less than
Upto & inclusive of 5 years
Margin 25% or more
1.50%
12.25%
Margin less than 25%
2.00%
12.75%
Above 5 years but upto 10 years Margin 25% or more 1.75% 12.50% Margin less
Above 5 years but upto 10 years
Margin 25% or more
1.75%
12.50%
Margin less than 25%
2.25%
13.00%
Above 10 years but upto 15 years
Above 10 years but upto 15 years

52

Siddharth Tripathi PGFA 1147

Margin 25% or more 2.00% 12.75% Margin less than 25% 2.50% 13.25% Above 15 years
Margin 25% or more 2.00% 12.75%

Margin 25% or more

2.00%

12.75%

Margin less than 25% 2.50% 13.25%
Margin less than 25%
2.50%
13.25%

Above 15 years but upto 20 years

   

Margin 25% or more

2.00%

12.75%

Margin less than 25% 2.50% 13.25%
Margin less than 25%
2.50%
13.25%
 

Above 20 years but upto 25 years

     
 

Margin 25% or more

 

2.00%

12.75%

Margin less than 25% 2.75% 13.50%
Margin less than 25%
2.75%
13.50%
 

UCO HOME LOAN SCHEME

 
 

Period

Up to Rs.30 lac

More than Rs.30 lac but less than Rs.75 lac

Rs. 75 lac and above

 

Spread

Final

Spread

Final

Spread

Final

Over

Over

Over

Base

Lending

Base

Lending

Base

Lending

Rate

Rate

Rate

Rate

Rate

Rate

 

Up to 5 years

0.50%

11.25%

0.75%

11.50%

1.00%

11.75%

 

Above 5 years and up to 15 years

1.00%

11.75%

1.25%

12.00%

1.50%

12.25%

 

above 15

           

years and

1.50%

12.25%

1.75%

12.50%

2.00%

12.75%

53

Siddharth Tripathi PGFA 1147

up to 25 years Incase of Special/Specific scheme under midmarket segment/Retail Banking, which have specific
up to 25 years
up to 25
years
Incase of Special/Specific scheme under midmarket segment/Retail Banking, which have specific validity period, the
Incase of Special/Specific scheme under midmarket segment/Retail Banking,
which have specific validity period, the applicable rate of interest will be as
guided by Head Office, Retail Department circular in this regard taking
current Base Rate.
G Loan against Bank’s Own Term Deposits
G Loan against Bank’s Own Term Deposits

2% above deposit ROI

Loans against own Term Deposits

Loans against Third Party FDRs upto and inclusive of Rs.2 lac

BR or 2.00% above deposit ROI whichever is higher

Loans against Third Party FDRs above Rs.2 lacs

BR+2.00% or

2.50% above

deposit ROI

whichever is

higher

Rate of Interest as per BASE RATE System

whichever is higher Rate of Interest as per BASE RATE System Particulars Spread of Base Rate

Particulars

Spread

of Base

Rate

of Interest as per BASE RATE System Particulars Spread of Base Rate Effective Rate 54 Siddharth

Effective

Rate

of Interest as per BASE RATE System Particulars Spread of Base Rate Effective Rate 54 Siddharth
of Interest as per BASE RATE System Particulars Spread of Base Rate Effective Rate 54 Siddharth

54

Siddharth Tripathi PGFA 1147

10.75% H Discounting of Bills under Letters of Credit LC Bills Discounting Rate (*)with usance
10.75%
10.75%
H Discounting of Bills under Letters of Credit
H
Discounting of Bills under Letters of Credit
LC Bills Discounting Rate (*)with usance period of
LC Bills Discounting Rate (*)with usance period of
Up to 3 months 1.75% 12.50%

Up to 3 months

1.75%

12.50%

Beyond 3 months & up to 6 months 2.00% 12.75%
Beyond 3 months & up to 6 months
2.00%
12.75%

Unsecured Loans and Advances and any Other Loans and Advances not specified above

Unsecured Loans and Advances

Facilities having Maturity of less than 3 years

8.40%

19.15%

Facilities having Maturity of 3 years or more 8.90% 19.65%
Facilities having Maturity of 3 years or more
8.90%
19.65%

I

Any Other Loans and Advances not Specified above

Facilities having Maturity of less than 3 years

8.40%

19.15%

Facilities having Maturity of 3 years or more

8.90%

19.65%

B

Facilities having Maturity of 3 years or more 8.90% 19.65% B Total Funded Exposure more than

Total Funded Exposure more than Rs 25 lacs (Facilities having maturity less than 3)

than Rs 25 lacs (Facilities having maturity less than 3) CREDIT RATING * Spread of Base

CREDIT RATING *

(Facilities having maturity less than 3) CREDIT RATING * Spread of Base Rate Effective Rate 10.75%

Spread of

Base

Rate

maturity less than 3) CREDIT RATING * Spread of Base Rate Effective Rate 10.75% 55 Siddharth

Effective

Rate

maturity less than 3) CREDIT RATING * Spread of Base Rate Effective Rate 10.75% 55 Siddharth

10.75%

55

Siddharth Tripathi PGFA 1147

  A++ 3.00% 13.75%   A+ 3.50% 14.25%   A 4.00% 14.75%   B+ 4.75%
 

A++

3.00%

13.75%

 

A+

3.50%

14.25%

 

A

4.00%

14.75%

 

B+

4.75%

15.50%

 

B

5.00%

15.75%

 

B-

5.50%

16.25%

C 6.00% 16.75%
C
6.00%
16.75%
 

Total Funded Exposure more than Rs 25 lacs (Facilities having maturity of 3 years or more)

 

CREDIT RATING*

   
 

A++

3.50%

14.25%

 

A+

4.00%

14.75%

 

A

4.50%

15.25%

 

B+

5.25%

16.00%

 

B

5.50%

16.25%

 

B-

6.00%

16.75%

C 6.50% 17.25%
C
6.50%
17.25%
 

Unsecured Loans and Advances and any Other Loans and Advances not specified in item A

 

Unsecured Loans and Advances

   

56

Siddharth Tripathi PGFA 1147

  Facilities having Maturity of less than 3 years 6.50% 17.25% Facilities having Maturity of
 

Facilities having Maturity of less than 3 years

6.50%

17.25%

Facilities having Maturity of 3 years or more 7.00% 17.75%
Facilities having Maturity of 3 years or more
7.00%
17.75%
 

Any Other Loans and Advances not Specified above

   
 

Facilities having Maturity of less than 3 years

6.50%

17.25%

 

Facilities having Maturity of 3 years or more

7.00%

17.75%

57

Siddharth Tripathi PGFA 1147

Product Process Flow for Housing Finance Enquiry Application with processing fee submission Credit Appraisal Checking

Product Process Flow for Housing Finance

Enquiry

Product Process Flow for Housing Finance Enquiry Application with processing fee submission Credit Appraisal Checking

Application with processing fee submission

Credit Appraisal

with processing fee submission Credit Appraisal Checking with Interview Verification with employer

Checking with

processing fee submission Credit Appraisal Checking with Interview Verification with employer Recommendation to the
processing fee submission Credit Appraisal Checking with Interview Verification with employer Recommendation to the
processing fee submission Credit Appraisal Checking with Interview Verification with employer Recommendation to the
processing fee submission Credit Appraisal Checking with Interview Verification with employer Recommendation to the
processing fee submission Credit Appraisal Checking with Interview Verification with employer Recommendation to the
processing fee submission Credit Appraisal Checking with Interview Verification with employer Recommendation to the

Interview

fee submission Credit Appraisal Checking with Interview Verification with employer Recommendation to the Sanctioning

Verification with employer

Appraisal Checking with Interview Verification with employer Recommendation to the Sanctioning Authority Sanction by

Recommendation to the Sanctioning Authority

with employer Recommendation to the Sanctioning Authority Sanction by Defer Approval Reject Letter to Applicants

Sanction by

Recommendation to the Sanctioning Authority Sanction by Defer Approval Reject Letter to Applicants Guarantor
Defer Approval Reject Letter to Applicants Guarantor
Defer
Approval
Reject
Letter to
Applicants
Guarantor

Acceptance Letter with Administrative fees

Guarantor Acceptance Letter with Administrative fees Legal title Documents review Signing loan disbursement

Legal title Documents review

Letter with Administrative fees Legal title Documents review Signing loan disbursement documents EMI repayment Prepayment

Signing loan disbursement documents

title Documents review Signing loan disbursement documents EMI repayment Prepayment Penalty Charge 58 Siddharth
title Documents review Signing loan disbursement documents EMI repayment Prepayment Penalty Charge 58 Siddharth
title Documents review Signing loan disbursement documents EMI repayment Prepayment Penalty Charge 58 Siddharth

EMI repayment

Prepayment Penalty Charge

58

Siddharth Tripathi PGFA 1147

Table: PROCESS

Table: PROCESS Step 1 A person applies for a home loan. Step 2 The executive meets

Step 1

A person applies for a home loan.

Step 2

The executive meets the applicant and briefs him the entire loan process, requirements and the various options available.

Step 3

The applicant chooses a Housing Finance Company (HFC) and hands over the income documents to the executive.

Step 4

The income documents are handed over to the HFC for eligibility and approval.

Step 5

The HFC verifies the documents and checks the repaying capacity, saving habits, tenure of service, etc. of the applicant and approves the loan amount.

Step 6

After approval, an offer letter is given to the applicant by the HFC, along with a list of original property title documents that have to be handed over to the HFC.

Step 7

The applicant gives the original property title documents to the HFC.

Step 8

The HFC scrutinises the legal and technical aspects of the original title documents.

Step 9

If the HFC is satisfied as to the legal & technical aspects of the documents then the applicant is called to sign the loan agreement.

Step 10

The loan disbursement schedule is decided by the HFC according to the stage of construction (if property under construction)or a one time payment is made if property is ready for possession

Step 11

The applicant gets possession of the property depending upon the level of completion of the property.

Step 12

The applicant starts paying the EMIs.

59

Siddharth Tripathi PGFA 1147

HOME LOAN: comparison of UCO SHELTER from HDFC HOME LOAN, ICICI HOME LOAN. LICHFL AND

HOME LOAN: comparison of UCO SHELTER from HDFC HOME LOAN, ICICI HOME LOAN. LICHFL AND SYNDICATE HOME LOAN

Home loan :

Home is more or less a lifetime investment and hence home loans are an integral part of every person who dreams and wants to have a living space of his own. A once in a lifetime investment needs a loan and that is how a home loan comes into the scheme of things in your life.

. UCO SHELTER:

comes into the scheme of things in your life. . UCO SHELTER: Particulars Rate of Interest

Particulars

Rate of Interest as per BASE RATE System

Particulars Rate of Interest as per BASE RATE System Spread of Base Rate Effective Rate 10.75%

Spread

of Base

Rate

Effective

Rate

BASE RATE System Spread of Base Rate Effective Rate 10.75% F Interest Rate Structure: For HOME
BASE RATE System Spread of Base Rate Effective Rate 10.75% F Interest Rate Structure: For HOME

10.75%

F

Interest Rate Structure: For HOME LOAN (earlier UCO Shelter)

1)

Floating rate loans

a) Floating rate loans (upto & inclusive of Rs.20 lacs)

60

Siddharth Tripathi PGFA 1147

Upto & inclusive of 5 years     Margin 25% or more 0.50% 11.25% Margin

Upto & inclusive of 5 years

   

Margin 25% or more

0.50%

11.25%

Margin less than 25% 1.00% 11.75%
Margin less than 25%
1.00%
11.75%

Above 5 years but upto 10 years

   

Margin 25% or more

0.75%

11.50%

Margin less than 25% 1.25% 12.00%
Margin less than 25%
1.25%
12.00%

Above 10 years but upto 15 years

   

Margin 25% or more

1.00%

11.75%

Margin less than 25% 1.50% 12.25%
Margin less than 25%
1.50%
12.25%

Above 15 years but upto 20 years

   

Margin 25% or more

1.00%

11.75%

Margin less than 25% 1.50% 12.25% Above 20 years but upto 25 years Margin 25%
Margin less than 25%
1.50%
12.25%
Above 20 years but upto 25 years
Margin 25% or more
1.75%
12.50%
Margin less than 25% 2.00% 12.75% b) Floating rate loans (Above Rs.20 lacs but upto
Margin less than 25%
2.00%
12.75%
b) Floating rate loans (Above Rs.20 lacs but upto
& inclusive of Rs.30 lacs)
Upto & inclusive of 5 years
Margin 25% or more
0.75%
11.50%

61

Siddharth Tripathi PGFA 1147

Margin less than 25% 1.25% 12.00% Above 5 years but upto 10 years    
Margin less than 25% 1.25% 12.00%
Margin less than 25%
1.25%
12.00%

Above 5 years but upto 10 years

   

Margin 25% or more

1.00%

11.75%

Margin less than 25% 1.50% 12.25%
Margin less than 25%
1.50%
12.25%

Above 10 years but upto 15 years

   

Margin 25% or more

1.25%

12.00%

Margin less than 25% 1.75% 12.50%
Margin less than 25%
1.75%
12.50%

Above 15 years but upto 20 years

   

Margin 25% or more

1.50%

12.25%

Margin less than 25% 2.00% 12.75%
Margin less than 25%
2.00%
12.75%

Above 20 years but upto 25 years

   

Margin 25% or more

1.75%

12.50%

Margin less than 25% 2.25% 13.00% c) Floating rate loans (Above Rs.30 lacs but upto
Margin less than 25%
2.25%
13.00%
c) Floating rate loans (Above Rs.30 lacs but upto
& inclusive of Rs.50 lacs)

Upto & inclusive of 5 years

   

Margin 25% or more

1.25%

12.00%

Margin less than 25% 1.75% 12.50%
Margin less than 25%
1.75%
12.50%
Above 5 years but upto 10 years
Above 5 years but upto 10 years

62

Siddharth Tripathi PGFA 1147

Margin 25% or more 1.50% 12.25% Margin less than 25% 2.00% 12.75% Above 10 years
Margin 25% or more 1.50% 12.25%

Margin 25% or more

1.50%

12.25%

Margin less than 25% 2.00% 12.75%
Margin less than 25%
2.00%
12.75%

Above 10 years but upto 15 years

   

Margin 25% or more

1.75%

12.50%

Margin less than 25% 2.25% 13.00%
Margin less than 25%
2.25%
13.00%

Above 15 years but upto 20 years

   

Margin 25% or more

2.00%

12.75%

Margin less than 25% 2.50% 13.25%
Margin less than 25%
2.50%
13.25%

Above 20 years but upto 25 years

   

Margin 25% or more

2.00%

12.75%

Margin less than 25% 2.50% 13.25% d) Floating rate loans (Above Rs.50 lacs)
Margin less than 25%
2.50%
13.25%
d) Floating rate loans (Above Rs.50 lacs)

Upto & inclusive of 5 years

   

Margin 25% or more

1.50%

12.25%

Margin less than 25% 2.00% 12.75%
Margin less than 25%
2.00%
12.75%

Above 5 years but upto 10 years

Margin 25% or more

1.75%

12.50%

Margin less than 25%

2.25%

13.00%

63

Siddharth Tripathi PGFA 1147

  Above 10 years but upto 15 years         Margin 25% or
 

Above 10 years but upto 15 years

     
 

Margin 25% or more

 

2.00%

12.75%

Margin less than 25% 2.50% 13.25%
Margin less than 25%
2.50%
13.25%
 

Above 15 years but upto 20 years

     
 

Margin 25% or more

 

2.00%

12.75%

Margin less than 25% 2.50% 13.25%
Margin less than 25%
2.50%
13.25%
 

Above 20 years but upto 25 years

     
 

Margin 25% or more

 

2.00%

12.75%

Margin less than 25% 2.75% 13.50%
Margin less than 25%
2.75%
13.50%
 

UCO HOME LOAN SCHEME

 
 

Period

Up to Rs.30 lac

More than Rs.30 lac but less than Rs.75 lac

Rs. 75 lac and above

 

Spread

Final

Spread

 

Spread

Final

Over

Final

Base

Lending

Over Base

Lending Rate

Over Base

Lending

Rate

Rate

Rate

Rate

Rate

 
 

Up to 5 years

0.50%

11.25%

0.75%

11.50%

1.00%

11.75%

 

Above 5 years and up to 15 years

1.00%

11.75%

1.25%

12.00%

1.50%

12.25%

 

above 15

           

years and

1.50%

12.25%

1.75%

12.50%

2.00%

12.75%

upto 25yrs

64

Siddharth Tripathi PGFA 1147

HDFC HOME LOAN COMPANY PROFILE HDFC BANK: The Housing Development Finance Corporation Limited (HDFC) was
HDFC HOME LOAN COMPANY PROFILE HDFC BANK: The Housing Development Finance Corporation Limited (HDFC) was

HDFC HOME LOAN

COMPANY PROFILE

HDFC BANK:The Housing Development Finance Corporation Limited (HDFC) was amongst the first to receive an ‘in principle’ approval from the Reserve Bank of India (RBI) to set up a bank in the private sector, as part of the RBI’s liberalization of the Indian Banking Industry. It was incorporated in August 1994 in the name of ‘HDFC Bank Limited’, with its registered office in Mumbai. HDFC began operations as a Scheduled Commercial Bank in January 1995.

operations as a Scheduled Commercial Bank in January 1995. Loans: HDFC Bank brings a wide range

Loans: HDFC Bank brings a wide range of loans to cater financial needs.

The bank offers the following loans-

Personal Loans

Consumer Loans

Auto Loans

Loans against shares

Loans against RBI Bonds

Loans against Insurance policy

E-instant loans-gives the facility of loan approval in 60 seconds on the internet.

65

Siddharth Tripathi PGFA 1147

HOME LOAN SCHEMES

PURPOSE

HOME LOAN SCHEMES PURPOSE HDFC Ltd. offers loans for the following purposes:  Land Purchase 

HDFC Ltd. offers loans for the following purposes:

Land Purchase

Home Construction/Purchase

Home Extension

Home Improvement loans

Short-term Bridge Loans

Non-Residential Premises Loans For Professionals

LOAN AMOUNT: Loans can be availed up to a maximum of 85% of the cost of the property (including the cost of the land). HDFC lends up to a maximum of Rs. 1, 00, 00,000 on a Home Loan to an individual.

LOAN TENURE: One can repay the loan over a maximum period of 20 years.

RATE OF INTEREST: Interest is calculated on annual rests. Principal repayments are credited at the end of HDFC's financial year. The effective rate of interest varies depending on the term of the loan. For a loan with a term of 15 years, the effective interest rate would be higher by 0.37% per annum than the indicated rate of interest.

SECURITY: Typically the security for the loan is a first mortgage of the property to be financed, normally by way of deposit of title deeds and/or such other collateral security as may be necessary.

Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to HDFC of life insurance policies, the surrender value of

66

Siddharth Tripathi PGFA 1147

which is at least equal to the loan amount, guarantees from sound and solvent guarantors,

which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to HDFC.

The title to the property should be clear, marketable and free from encumbrance. To elaborate, there should not be any existing mortgage, loan or litigation which is likely to affect the title to the property adversely.

Interim security may be additionally required, if the property is under construction. Collateral or interim security could be assignment to HDFC of life insurance policies, the surrender value of which is at least equal to the loan amount, guarantees from sound and solvent guarantors, pledge of shares and such other investments that are acceptable to HDFC.

DOCUMENTATION

Following documents should be produced for approval of loan:

a) Common for all applicants:

1. Allotment letter of the co-operative society / association of apartment owners.

2. Copy of approved drawings of proposed construction / purchase.

3. Agreement for sale/sale deed/detailed cost estimate from architect/engineer for the property to be purchased / constructed.

4. If you have been in your present employment / business or profession for less than a year, mention details of occupation for previous 5 years, giving position held, reasons for change and period of the same.

5. Applicable Processing Fees.

6. Any other information regarding your repayment capacity that is necessary and will assist HDFC in appraising the case.

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b) Additionally,

If borrower is employed:

b) Additionally, If borrower is employed: 1. Latest salary slip/salary certificate showing all deductions. 2. If

1. Latest salary slip/salary certificate showing all deductions.

2. If your job is transferable, permanent address where correspondence relating to the application can be mailed.

3. A letter from your employer agreeing to deduct the monthly installment towards repayment of the loan from your salary. This will expedite the processing of your loan application.

If borrower is Self-Employed:

1. 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.

2. A note giving information on the nature business/profession, form of organization, clients, suppliers, etc.

ELIGIBILITY

The repayment capacity as determined by HDFC will help in deciding how much one can borrow (the cost of the property or Rs. 1 crore, whichever is lower). Repayment capacity takes into consideration factors such as income, age, qualifications, number of dependants, spouse's income, assets, liabilities, stability and continuity of occupation and savings history. HDFC's main concern is to make sure customer can comfortably repay the amount they borrow

TAX BENEFIT

Resident Indians are eligible for certain tax benefits on principal and interest components of a loan under the Income Tax Act, 1961. Interest repayment of Rs. 1, 00,000 p.a. (for a loan on or after April 1, 2000) can get borrower a tax saving up to approximately Rs. 33,000 p.a. Moreover, customer can get added tax benefits under Sec 88 on repayment of principal amount up to Rs. 20,000 p.a. which can further reduce borrower’s tax liability by Rs. 2,000 p.a.

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ABOUT THE PRODUCT

ABOUT THE PRODUCT HDFC's Home Loans offers you various unique benefits and are easy to arrange

HDFC's Home Loans offers you various unique benefits and are easy to arrange and repayable in easy monthly installments. The terms of the loan can be structured according to customer unique requirements.

Home Loans can be applied for by either individually or jointly. Proposed owners of the property, in respect of which the loan is being sought, will have to be co-applicants. However, the co-applicants need not be co-owners.

Loans can be availed upto a maximum of 85% of the cost of the property (including the cost of the land). HDFC lends upto a maximum of Rs. 1, 00, 00,000 on a Home Loan to an individual. One can repay the loan over a maximum period of 20 years. They determine the loan amount after evaluating the repayment capacity of the individual. HDFC's main concern is to help individuals comfortably repay the borrowed amount.

RATE OF INTEREST Adjustable rate of Interest: The interest rate on your ARHL is linked to HDFC's Retail Prime Lending Rate (RPLR). The rate of interest is revised every three months from the date of first disbursement, if there is a change in RPLR. However, the EMI on the ARHL will not change. For instance, if the interest rate increases, the interest component in EMI will increase; the principal component would reduce, resulting in an extension of the term of the loan and vice-versa when the interest rate decreases. customer will be provided with an annual statement indicating the details of the interest and principal payments made during the year.

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Annual Rest Option

Term of Loan (No. of Years)

1 20

Monthly Rest Option

Term of Loan (No. of Years)

1 – 20 Monthly Rest Option Term of Loan (No. of Years) Rate Per Annum (%p.a)

Rate Per Annum (%p.a)

8.00

Rate Per Annum (%p.a)

Upto

5 9.00

6

-

10 9.25

11 20

9.75

Rate of interest under ARHL is linked to HDFC's RPLR (Retail Prime Lending Rate) which currently is 8.00% per annum. customer repay the loan in EMIs comprising principal and interest. Pending final disbursement, you pay interest on the portion of the loan disbursed. This interest is called pre-EMI interest.

EMI per Rs.1,00,000 for Annual Rest Option

Term of loan (No. of years)

Rupees

20

979

EMI per Rs.1,00,000 for Monthly Rest Option

Term of loan (No. of years)

Rupees

5

2,076

10

1,281

20

949

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Siddharth Tripathi PGFA 1147

There is no early redemption charge on repayment of a loan ahead of schedule. Fixed

There is no early redemption charge on repayment of a loan ahead of schedule.

Fixed rate of interest

The current applicable fixed rate of interest in respect of the total loan approved is are as follows:

Annual Rest Option

Term of Loan (No. of Years)

Rate Per Annum (%p.a)

Upto

 

5 9.25

6

-

10 9.25

11

20

9.75

Monthly Rest Option

Term of Loan (No. of Years)

Rate Per Annum (%p.a)

Upto

 

5 9.25

6

-