Documenti di Didattica
Documenti di Professioni
Documenti di Cultura
PART 1
Car loans
Loan taken for purchase of car secured by
hypothecation of car
Car finance market divided into
New cars
Used cars (pre owned cars)
Car loans
Registration of
vehicle and
marking of
hypothecation
on the car
Selection of car at
dealer
Car finance
scheme explained
by bank
representative
Submission of
credit papers by
customer
Disbursement of
loan to dealership
Loan approval ,
submission of
EMI PDCs
Credit cards
Credit cards can be used for
shopping at malls etc and also to
withdraw cash
Limit is set in the card at the time of
issue
Interest free credit period is offered
for payment varying from 10-45 days
Beyond due date interest and
overdue charges are payable
Credit cards
Advantages
Easy shopping since immediate cash flow not
required
No need to carry cash / cheque
Wide acceptability
Cash withdrawal subject to limits
Disadvantages
Over spending
Overdue charges / interest in case of non
payment on due date
Possibility of frauds forged signatures, now PIN /
OTP ensure additional security for card holders
Home loans
Home loans are loans for purchase or
construction of house or flats, repairs and
renovation
Can be offered to salaried class, self
employed, businessmen
Loan amount is based on the capacity to pay
of the borrower and the cost of the house
Repayment is allowed maximum upto age of
retirement or 70 days whichever is earlier
Home loans
Home loans upto 30 years are also
offered subject to age criteria
Repayment is made through EMI
Standard credit procedures apply
including evaluation of credit history,
financial strength, cash flow and
current outflow on other loans
Loan is secured by way of mortgage
over the house
Home loans
If income of spouse is taken into
consideration while arriving at home
loan then his / her personal
guarantee is also taken
Additional collateral security may be
taken for comfort depending on the
risk profile
Interest rates offered are
Either fixed
Or floating linked to Bank PLR
Home loans
EMI is split into principal interest components
Home loans go through legal and technical
checks before disbursement
Documents such as approved plan/ CC are
checked for under construction property. For
ready flats OC / society bye laws etc are
verified
Disbursement for under construction
property is based on work certified by the
architect
Home loans
LTV as issued in RBI guidelines are
(maximum)
90% for home loan up to 20 lacs
80% beyond 20 lacs up to 75 lacs
Above 75 lacs 75%
Documents required
(illustrative)
Personal loans
Unsecured loans given without any
tangible security
Examples
Loan to professionals
Loan to pensioners
Salary loan
Personal loans
Could be given for educational /
household expenses
Third party guarantee may be taken
Standard credit documents and loan
documentation
ROI is higher than secured loans
Loan period 24-36 months generally,
can extend upto 60 months
Processing fee is levied