BANK OF INDIA, STC BHOPAL

Please keep following Papers/information/documents before considering a

credit proposal.

(A)General Please obtain and keep on record

02 Pre-sanction inspection report in respect of residence/shop/office/factory of the

proponent to have first hand information about his/her activity. This gives
comfort to the processing/sanctioning authority. Same approach should be
adopted in case of proposed guarantor.
03 Latest CBD-23 in respect of proponent /borrower/ proprietor/ partner(s)/
Director/guarantor
04 CBD-23 in respect of borrower(s)/guarantor(s) and assess the worth on the
basis of proof submitted in respect of Assets held vis a vis the liability of the
person concerned (Please note that it is the Sole responsibility of the branch
official to assess the worth)
05 Furnish worth of the borrower/guarantor as per last reviewed memorandum vis a
vis present worth to know the variation in the worth. If there is variation of ±20%
proper justification to be furnished.
06 If the Net Worth of the concerned person is Rs. 10.00 lac and more a certificate
from the CA of the borrower/guarantor to be obtained.
07 Five Codes of the borrower/activity to be furnished such as (i) SBU Code
(ii)Sector Code (iii) Scheme Code (iv) Special Category Code(v)
Occupation(BSR Code)

(B) if the borrower is existing one furnish following information in the branch
proposal

Facility (1) Facility (2) Facility (3)

CBS A/c. Number
Customer ID( should be same for all credit
facilities of a borrower)
Asset Code
Type of Facility
Sanctioned limit
Original sanctioned Date
Authority
Date of Last Review
Authority
Drawing Limit as on date of proposal
Outstanding as on date of proposal
Overdue as on date of proposal
Reasons for Overdue
Date of Last renewal document 444C/D etc.
Insurance of Stocks (Amount)
Insurance of collateral security(Amount)
Insurance policy valid up to Date
Whether bank’s clause incorporated in the (Yes/No) (Yes/No) (Yes/No)

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policy
Date of last inspection of Stocks
Date of last property verification (by 2 officials
if the credit facility is Rs. 5.00 lacs and above)
Credit Turn over compared to sales during the last FY as well as during the current FY till
date. If the credit turnover is not commensurate with sales, please comment on such
variation.
Debit turnover/Maximum Balance/Minimum Balance & Average Balance in the account
Conduct of the account
Cheque Returns/LC Devolvement/BG Invocation, if any and reasons there for
Risk Weight

{C} If the proponent/borrower is enjoying credit facility from other FI/Bank

Name of the bank/FI
Type of Loan/credit facility
Sanctioned Limit
Date on which the loan /credit facility availed
Outstanding as on date of proposal
If Term Loan: Amount of Installment
Frequency of installment Monthly/quarterly/half yearly etc,.
No. of Installments allowed by other bank/FI
Rate of Interest charged by other bank/FI
No of installment paid so far
Rational : Installment of Term Loan to be taken as Current ratio and also for DSCR.
Obtain copy of statement of account preferably since inception supported by Status
report from the concerned bank/FI in IBA format
Rational: To ensure that the accounts with other bank/FI are in standard category
and the conduct/repayment has been regular. Instances of bouncing of cheque
towards T/Loan with other banks indicates that the proponent/borrower lacks financial
discipline.
Obtain the details of security charged to other bank/FI such as
Plot/House/commercial building no., survey no., area, and whose name the
mortgaged stands etc. Please comment whether the secured proposed to our bank
is different from the one mortgaged with other bank/FI.

(D)If Cash Credit Limit has been sought against stocks/book debts/clean limit
(1)Audited Balance sheet for the last 3 years (where the firm is in existence for more
than 3 years, otherwise for lesser period)
(2a)Estimated sales for the current year and Projected sales for the next year if
turnover method is to be applied( If CMA data is provided by the borrower it would be
well and good)
(2b)Ask the borrower to give a write up about his modalities on sale/clientele
base/market for procurement of goods etc.
(3)Compare the estimated sales/receipts with the last audited Trading account. The
Estimated/projected sales/receipts should not be abnormally high. Normally an
increase in the sales/receipts in the range of 10% to 20% may be termed reasonable.
However, if the estimated/projected sales are more than this level, please ask the
borrower to justify the same vis a vis your comments whether the estimates/projected
sales/receipts appear achievable.

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(4)Credit Turnover in the existing Cash Credit Account for the last two years. This is
to ensure that the firm/borrower has routed all the booked sales through the CC
Account only. If there is less or excess credit turn over proper justification should be
sought from the borrower/firm. Rational: It is mandatory for the borrower/firm to
route all the booked sales through his/its CC account only.
(5).Obtain Latest Stock Statement from the borrower giving break up of stocks in to
(i) paid stocks & (ii) unpaid stock and amount of the Stocks.
Rational: We can allow drawing against Paid stocks only. By obtaining Stock
statement(wherever applicable) on monthly basis, related DP can be fed in the
system. Further if the stock statement is not submitted by the borrower for more than
3 months, the account technically becomes NPA.
Note: Where Clean limit has been sanctioned or proposed(such as CC limit to civil
contractor) , stock statement is not applicable.
6.Insurance policy of Stocks (a) Amount of insurance policy (b) Validity of Policy up
to :………..
7.If CMA data is provided it is well and good. Otherwise limit can be considered on
projected sales(provided the projected sales are justifiable with the past
performance)
8.Up to date sales figures duly verified by CA of the borrower to ensure whether the
borrower would be able to achieve the estimated/projected turnover.
9.Whether or not the borrower is enjoying CC limit against Book Debts, obtain latest
Book Debts statement from the borrower giving break up of book debts up 90 days
old and > 90 days.
Rational: If the borrower is enjoying CC Limit against B/Debts, DP would be against
outstanding up to 90 days only. Further for our Current Asset purpose we should
take B/D which are outstanding up to 90 days. The book debts statement should give
name of the party, Bill no. date and amount to ensure the age of the debtors.
10. In case of Clean Limit (such as in the case of civil contractor ), obtain copies of
confirmed work orders awarded by the Govt. and other departments to the
borrower/proponent , because on the basis of adequate confirmed work orders CC
limit can be sanctioned. Ask the borrower to furnish the details in the following format
(i)Category awarded to the borrower(civil contractor) by concerned Govt.
Departments(This gives an idea that up to which amount the borrower can execute
the work orders)
(ii)Confirmed Work Order No. Date
(iii)Amount of work order
(iv)Name of the Department
(v)Nature of the work to be done
(vi)Name of sites and their distance from the branch
(vii)Time given by the department for completion of the work
(viii)Quantum of work done till date of proposal (out of the total work orders)
(ix)Quantum of remaining work order(Rational: On the basis of remaining work
orders , limit can be considered)
(x)Comment on past performance of the borrower in execution of work orders(this
indicates that the borrower/guarantor is & would be able to execute the work orders
as per time schedule)
(xi)Random inspection of Work Site: Though the limit is on clean basis(because
the sites of the contractor are some times scattered and further the fact that stocks
used in the construction activity are generally building materials such as cement,
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 bricks, sand etc. hypothecation and valuation thereof is practically not possible).
However, random inspection of work sites should be done by the branch official to
ensure that bank’s funds are being utilized for the intended purpose.
11.Furnish date of CPA conducted and closure thereof with authority.
Rationale : The observations of the CPO are necessary to be complied with, before
which CPA can not be closed by competent authorities.
12.Date of vetting of documents: If the credit facility is Rs. 50.00 lacs and more,
security documents should be got vetted by bank’s panel advocate.
Rational: Vetting by the branch advocate ensures that the security documents would
be enforceable in the court of law in case of their enforceability.
13.Details of ToL: must be furnished invariably. While allowing ToL in the account
Branches must adhere to delegation of powers as circulated vide HOBC No.
106/141 dated 28.12.2012 and 107/24 dated 04.05.2013.
14.Date of Stock Audit & closure thereof: should be given.
Rational: The observations of the stock auditor if not rectified quickly, it may
jeopardize bank’s interest.
15.List of pending RBIA irregularities under section (A) such as
(a) Non registration of charge with RTO/Sub Registration of
Assurances/CERSAI/ROC etc. Registration of EQM charge with Sub Registrar
of Assurance as well as CERSAI is pre-disbursement terms.
(b) Non insurance of vehicle
(c) Non- incorporation of bank’s clause in insurance policy
16.Branch to certify that all irregularities have been rectified. Please note that if the
branch certifies that all the irregularities have been rectified and subsequently
it is noticed that the irregularities are actually not rectified, then it would be the
sole accountability of the branch chief incumbent who has furnished such
certificate.
(D) In case of Project finance/Term Loan

1. Obtain project report

2. Quotations from the reputed suppliers in respect of items/machineries/Equipments
to be purchased.
3.In case the supply from a single supplier is Rs. 10.00 lacs and above, obtain status
report on such supplier from his banker in IBA format
4.Branch official should also visit the shop of the proposed suppler to ensure that the
(a)proposed supplier is really engaged in dealing in such kind of
machineries/equipment etc. and (b) he is in a position to supply the quoted
machineries/equipments.
5.The quotations should be latest (because if the quotations are old then the prices
might have escalated , resulting in wrong assessment of the project)
6.The sources of margin towards project cost should be furnished. The margin
towards cost of project comprises the following :-
(a) towards project cost (b) towards interest during the moratorium/construction
period.
Rational: Bank must know whether the proponent/borrower has the capacity to
contribute the aforesaid margin otherwise the project may not complete. The
borrower is required to bring in entire margin upfront. However, if the
borrower/proponent is not able to bring the required margin upfront, his strategy to be
obtained in this regard, supported by his CA certificate.
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7.Obtain proof from the borrower regarding availability of energy connection and his
comment on alternate arrangement, availability of water, deployment of work force for
running the unit.
8.Obtain copy of permission (NOC) from pollution control board/permission under
Industrial safety, wherever required.
9.DCCO: Please comment as to when the project would be operationalised, because
non completion of project as per DCCO would render the project incomplete/non
viable.
10.For example if credit facility is proposed to be sanctioned for a school/college for
construction of school/college building/hostel premises etc. , then please ask the
proponent to furnish the following information:-
Catchment area i.e. the names of villages and their population wherefrom the
students are expected to be enrolled.
Names of other institutions which are already operating in and around the
proposed site of school/college, vis a vis their present occupancy level. This may
help the branch to assess whether the proposed school/college would be able to
register the projected number of students.
Obtain the fee structure of other operating school/college and compare the same
with the fee structure of the proposed unit to assess whether the fee structure of
the proposed school/college is higher as compared to fee structure of other
schools/colleges operating in and around the area.
If the borrower/society/trust is already running a school/college and wishes to
establish another unit, branch official must see the registers of the unit to satisfy
himself that the existing classes are already running at desired
occupancy/profitable level.
In case of society , the society requires (i) NOC from Registrar of Firms and
Societies , Bhopal for acquiring the property either on lease basis or otherwise.
There are certain other permissions which are essential for consideration of loan to
a society.
(E)If the credit facility is secured by EQM of immovable property(either as
principal security of collateral security) then, furnish the following

If the property is leased hold property say leased out by Ujjain Development
authorities/MP Housing Board/DIC etc. Please obtain and keep on record, registered
leased deed executed in favour of the mortgagor.
Ensure that (a) the unexpired lease period is sufficiently more than the proposed
repayment period (b) whether there is any renewal clause in the leased deed (c)
Make diary note of lease period(d)Obtain declaration from the mortgagor that he/she
would get the lease deed renewed.
Ensure that the NOC has been given by the lesser for creating the EQM in bank’s
favour. The NOC should .be purpose specific. Please note that if the lesser had given
its NOC at the time of sanction of original credit facility, branch to obtain further NOC
from the lesser for creation of extension of EQM to secure additional credit facility.
If the land is diverted, please ensure that the Diversion order has been given by the
SDO, under section 172 of the M.P. land revenue act, 1959. (a)The Diversion order
should clearly mention that the land has been diverted for residential or commercial
purpose(b) The diverted portion which is proposed to be equitably mortgaged should
have independent access ( for example if the diverted land is situated on the
backside of a piece of land owned by other farmer/owner, then we can not have free
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and independent access to the proposed property. As such we can not fall upon the
security in case of need.
The diverted land should have clear demarcation given by Patwari or Tahsildar.
Rational : If for example the mortgagor had 1.00 hectare of agricultural land (before
its diversion), out of which he got land diverted admeasuring 0.40 hectare, then
valid EQM can be created in respect of 0.40 hectare only if the diverted land has
clear four boundaries, otherwise the EQM would be invalid and such EQM can not be
enforced upon in case of need.
Mutation order in the name of the mortgagor from the competent authority say
municipal corporation, Ujjain etc.
Latest Lease payment receipt/Tax receipts
Rational: The lesser and the Govt authority has priority on the fees/charges they
have to recover on the property mortgaged.
1.Date of Creation of Original EQM:
2.Account in which Original EQM has been created
3.Credit facilities secured by Original EQM
4.Registration of EQM charge with Sub Registrar of Assurances.
5.Registration of interest security charge with CERSAI
6.Date of Extension of EQM
7.Extension created in the account
8.Aggregate Credit facilities secured by extension.
9.Amount of Insurance policy of immovable property
10.Expiry date of Insurance Policy
11.Whether policy incorporates bank’s usual clause.

(E) Miscellaneous
1.Date of Pre-sanction Inspection Report to be kept on branch record.
2.Date of property verification by 2 branch officials if the credit facility is Rs. 5.00 lacs
and more as per format circulated vide HOBC No. 99/103 dated 03.10.2005.
3.Date of Post Sanction inspection (if it is an existing unit)
4.Search Report: to be obtained for the last 30 years from the bank’s panel advocate
in HO format. Search report should be “Verified and Approved” by the chief
incumbent of the branch if the branch is headed by Scale-III officer. Otherwise it
should be done by officer who is in charge of Advances Department. Note: Since the
report is to be approved and verified by branch, branch to carefully study the report
and obtain all the documents as advised by the branch advocate.
5.Search for the intervening period : to be obtained if the last search was obtained 30
days before sanction/disbursement of credit facilities.
Chain of Title: Branch to ensure that the proposed mortgagor has complete chain of
title at least for the last 30 years. There should not be any break in the chain. Please
also ensure that the title has not been acquired by virtue of PoA(we have
communicated the same vide our IOM No.ZOU/CR/UMK/12-13/50 dated
25.05.2012 since it has some inherent risks).
Obtain copy of Building permission and plan approved by competent authority say
Dewas Municipal corporation.
Rational: If proposed mortgagor has constructed the building without obtaining
building permission and plan approved, the structure is subject to be demolished by
the concerned authority. In such an event bank’s finance would be at stake.

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Ensure that all the four boundaries of the immovable property proposed to equitably
mortgaged are same as furnished in the title deed/valuation report etc..
Rational: This will facilitate to locate the right property in case the bank wants to
enforce the same.
Exception : It may be that at the time of execution of sale deed (for example on the
east side there was house of Mr. Sirodia, however, he might have sold the same and
the present owner is now Mr. Chiranji).
6.Valuation Report: Should be obtained from bank’s panel valuer.
Important: While studying the valuation report following should be looked in to
(a)Whether the valuer has furnished any qualifying remarks such as “legal
construction” etc. (b)Valuation report should be approved by chief incumbent of the
branch.
Rational: If the mortgagor has constructed area more than the permitted one (as per
building permission/approved plan), the excess constructed area would be subject to
be demolished. In such an eventuality , the security charged to us would be defective
and the value thereof would be adversely affected.
7.If the aggregate credit exposure is Rs. 50.00 lacs and more , valuation reports from
two different valuers on bank’s panel are required.
Credit Rating exercise: should be done for credit facility up to Rs. 500.00 lacs in SBS
model for limit of Rs. 10.00 lacs and over.
Details of Float available with the branch:-
(a) Break up of Savings/Current deposit/FDR etc., in the name of the
borrower/partners/guarantor.
Obtain copy of ITRs and self assessment sheet, preferably for the last 3 years.
If borrower has raised Unsecured loans, then branch to obtain an stamped
undertaking/declaration from the borrower that he would maintain the level of such
unsecured loans to the existing/projected level during the currency of the bank
loan/credit facilities. Further such unsecured loans should carry either no interest or
if interest is paid the same should be less than bank’s RoI.
In case of Loan against Property (introduced vide HOBC No. 106/28 dated
07.05.2012) the mortgagor should be a close relative of the borrower as per section 6
of Companies Act, 1956.
Position of Cross of Bank’s own products such as Credit card/gold coins and third
party products such as SUDLIFE etc.
Logic: Bank earns non interest income from sale of these products.
Please comment on compliance of directions of the sanctioning authority as per last
sanction/Review.
Rational: compliance with the directions of the sanctioning authority is mandatory. No
relaxation is permissible without his consent/permission.
TNW: While arriving at TNW, the unsecured loans can be taken maximum to the
extent of TNW of the borrower
TNW is arrived at by deducting intangible assets such as accumulated losses from
the capital.
Current Ratio: While calculating Current liability the term loan installments falling due
in the next 12 months from the date of balance sheet should be included.
Please also calculate current liability excluding the T/L installment.
In current assets, Deposit which are unencumbered/deposit placed as security in the
L/C, IBG limit can be taken in to current assets. However some deposits which are
kept with Mandi Samiti, Govt. departments as security deposit/earnest money deposit
7
can not be taken as current assets because these deposits can not be converted in
to cash within the next 12 months.
Extract CIBIL report on the proponent/borrower/guarantor/partner(s). Any adverse
feature should be taken in to account.
Verification of ITR can be done from the site ITR site

In case of Retail loans

1.The salary slip should be of the previous month.
2.All Retail Loans should be processed in CAPS.
2.ITRs at least for the last three years. In the absence of ITRs , Form 16 should be
obtained. It should also be ensured that the ITRs are not filed on a single day,
because this may be an indication to us that the proponent has filed the tax returns
with the intent to avail loan from us.
3.All statutory deductions should be taken in to account while arriving at the eligibility
4.If a borrower has already paid I.Tax in advance for the entire financial year, even
then his notional liability towards I. Tax should be taken in to account (as applicable
in the case of Clean OD to staff)
Rational: The I. Tax liability is a continuing liability and thus notional liability should
be taken in to account.
5. KYC norms to be fully complied with
6.Pre-sanction report should, inter-alia, cover the point whether the residence/work
place/office of the proponent/guarantor has been visited, distance from the branch
etc.
Finance against WHRs issued by Private warehouse

Finance against WHRs particularly when these are issued by private warehouse is more
sensitive. Hence following precautions should be taken:-
(i)The private warehouse is duly approved by ZO/ZLCC.
(ii)The warehouse has a valid license from the M.P. Warehousing and Logistic Centre
and same is in force as on date of finance.
(iii)The warehouse building in which the proponent/trader would store his agriculture
produce, is fully and comprehensively insured.
(iv)Similarly, the entire stocks stored in the warehouse(including the stocks of the
borrower) should be fully and comprehensively insured. Rational: If the entire stocks are
not insured then in the eventuality of any mishap, our security (represented by WHRs
pledged with us ) would be diluted or even extinguished.
(v)Periodical inspection of the warehouse should be done (once in a fortnight) to ensure
that the stocks of the borrower is stacked separately for its easy identification.
(vi) The farmer OR the trader should pay off the finance against WHRs within 6 months
from the date of disbursement.
(vii)It should also be ensured that the WHRs are in force, otherwise the same should be
got renewed by the borrower.
(viii)Please ensure that our lien is noted on the WHRs as well as in the records of
Warehouse.
(ix)Finance against WHRs should be liquidated within 6 months.
1.Branch delegatees should exercise their powers as per delegation of powers as
conveyed vide HOBC No. 106/141 dated 28.12.2012 and 107/24 dated 04.05.2013.
Following are the delegation of powers for Other category of borrowers (i.e. Other than
Public& Listed companies) ( Amount in lacs)
Rating Scale-I Scale-II Scale-III Scale-IV
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 Group Exposure cap 15 50 150 500
SBS 1 & 2 Secured 05 17 50 200
Partly/Unsecured 02 04 09 30
SBS-3 to 5 Secured 04 15 30 100
Partly/Unsecured 01 03 08 25
ToL can be granted by the delegate up to 10% of working capital borrowing limit,
subject to following ceilings:-
(i)25% of normal lending powers under Secured exposure limit
(ii)25% of normal lending powers given under Partly secured/unsecured category.

Example:-
(a)Sanctioned Limit Rs. 100.00 lacs
(b)10% of (a)above Rs. 10.00 lacs
(c}25% of normal lending powers under Secured Rs. 12.50 lacs
exposure (say the sanctioning authority is Scale-III
officer). Normal lending powers of Scale-III officer under
SBS-3 rating : 50 lacs then 25% of Rs. 50.00 lacs
(d}25% of normal lending powers under Partly/Un Rs. 2.00 lacs
Secured exposure (say the sanctioning authority is
Scale-III officer). Normal lending powers of Scale-III
officer under SBS-3 rating : 8 lacs then 25% of Rs. 8.00
lacs
(e)out of (b) (c) &(d), which ever is less

Note: ADHOC can not be sanctioned at branch level)

Important: TOL should not be granted by branch in accounts which are overdue
for review.
(v)If the ToL/Adhoc limit is granted for a period up 30 days , documentation is not
necessary. Same can be sanctioned on the application of the borrower, However, if
the period exceeds 30 days, necessary documentation is essential supported by
creation of charge such as extension of EQM etc.

Delegation of powers for Retail Loans (Amt. in lacs)

Scale> I II III IV
Star Personal Loan Un Secured 0.25 0.50 0.75 1.50
Secured 0.75 1.50 2.50 10.00
Star Education Un Secured 1.00 4.00 7.50 10.00
Star Home Loan* (always 3.00 10.00 20.00 50.00
secured)
Star Vehicle Loan Secured 1.00 5.00 8.00 25.00
Star Pensioner Loan Un Secured 0.25 0.50 0.75 1.00
Secured 0.75 1.00 1.00 1.00
*Branches which are not covered under Retail Hub/RBCs.

Minimum/Maximum Ratios
Type of Ratio/Parameters Min./Max. Maximum Permissible
(prescribed as Relaxation
per Credit Policy) (Revised)

Debt Equity Ratio/ 4 Maximum 5 for all cases

Debt Quasi Equity Ratio

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 (TOL/TNW)
DSCR 1.25 (Min. 1.1(Average) for all cases
Current Ratio 1.00 (Min. 0.07 for Sugar and seasonal
industries and 0.08 for other
sectors
ISCR 1.50 (Min.) No minimum stipulated.
However ideal ISCR is 1.50
Entry Level Norms
Minimum Where applicable
Rating
SBS(other than SBS-5 For FB & NFB limit of >Rs. 10.00 lacs and up to
SME) Rs. 5.00 crore
SME(Earlier MS-5 For FB & NFB limit of >Rs. 5.00 crore but not
SSI) exceeding Rs. 30.00 crore and/or turnover with
Rs. 50.00 crore and above but not exceeding
Rs. 150.00 crore.
Release/substitution of securities
(i)In respect of standard accounts substitution of collateral security can be considered
by one level above the delegate under whose powers the sanction falls up and
including of ZLCC, subject to the condition that the account is not overdue for review.
(ii)Substitution of guarantee: In respect of Standard Assets, the delegate under whose
powers the sanction falls, may approve substitution of guarantee provided the account is
not over due for review. Net worth of the guarantor substituted should be more or equal
to the net worth of existing guarantor.
(iii)Release of guarantee: In respect of standard assets, release of guarantee can be
done only if the account is not overdue for review and there is no overdue/irregularity in
the account and the rating of the account is not below the Entry Level. Approval can
be given by a delegate one level above the delegatee under whose the sanction
falls. Minimum authority would be ZLCC.
Temporary Overdraft/ Drawing against un cleared effects:
(i)Branch should not allow any ToD/Drawing against effects( other than against the
DDs./Pay Orders of Scheduled commercial banks and the cheques issued by
Government Departments) in newly opened Current Accounts for a period of six month
from the date of opening. In exceptional cases such ToD can be permitted by ZLCC.
(ii) TOD may be given on merits in exceptional cases in the Current Account of the
depositor/borrower. However, the ToD granted should not exceed 30 days and should
not be rolled over.
Control registers/measures

1.Application received/sanctioned/rejected Register giving the details such as sr. No.,

Date of receipt of application, Name of the proponent ,sponsoring agency name(if any),
purpose of loan, loan requested for( first part)
Date of sanction/Authority/Amount sanctioned/Margin/
If Rejected: the reason there for in Remarks column. Please note if application of SC/ST
proponent is to be rejected, the approval of ZM is necessary for such rejection.
2.Security documents Renewal Register: incorporating date of L444C obtained(Please
ensure that the L-444C should be executed by all the borrowers & guarantors, partial
execution by some borrowers or guarantors in not enforceable against those who have
not signed the same.)
3.Insurace register: Maintain due date register in respect of insurance of stocks/
collateral securities and ensure that the insurance policy is always in force. Record can

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be fed in Excel format whereby due dates can be generated on advance basis.
Insurance should be for full value of the stocks to avoid application of Average Clause.
4.Maintain Stock statement/B/debts statement register: Ensure to obtain these
statements on monthly basis. These statements should be verified by the branch
manager and the officer in charge of Advances Department. Non submission of stock
statement by the borrower may attract penal interest. Our review exercise may also get
hampered.
5.Due date diary for interest concession allowed by controlling authorities. Feed the
details of interest concession, validity period etc. (In this regard please refer ZO
IOM No. ZOU/CR/UMK/12-13/52 dated 23.05.2012, this will help check revenue
leakage in the account)
6.Also maintain Due Date Diary where advance against Bank’s TDR/NSC/KVIPs has
been sanctioned. Such Due diary should contain (i) Name of the borrower (ii)TDR
Account/Receipt No. (iii) Date of Issue (iv) Date of Maturity (v) Date of subsequent
Renewal etc. This will help the branch in following ways:-
(a)To renew the TDR on or before maturity date( as per instruction of the depositor.)
(b)To appropriate the TDR in the loan/OD account if the depositor is not willing to
renew.
(c)if the advance is against NSC/KVIPs, get the payment from the concerned Post
Office on the due date and appropriate the same in the loan account.
7.In case of KCC Accounts: Maintain a Diary incorporating the accounts wherein the
renewal(Palta) has been done by the borrower-farmer. All those accounts where the
total credits are at least equal to the maximum outstanding in the account at any time
during the period of 12 months from the drawal by the borrower-farmer are eligible for
interest subvention subject to maximum limit of Rs. 3.00 lacs.
Other KCC accounts where renewal(Palta) has not been done by the borrower are
not eligible for Interest subvention.
Similarly if the sanctioned KCC Limit in an account is in excess of Rs. 3.00 lacs and
the account has been renewed(palta done), the maximum amount eligible for interest
subvention is Rs. 3.00 lacs. In other words, the amount in excess of Rs. 3.00 lacs is
not eligible for interest subvention. Hence maintaining such a diary would help the
branches to feed normal applicable RoI in such accounts which will check revenue
leakage.

Latest Circulars on Retail Loans

(1)Star Home Loan: HOBC No. 106/6 dated 03.04.2012, 106/145 dated 24.12.2012,
106/107 dated 26.09.2012.
(2)Star Loan Against Property:
(3)Star Educational Loan: HOBC No. 106/29 dated 07.05.2012, 105/123 dated
14.10.2011, 106/197 dated 14.03.2013, 107/5 dated 04.04.2013.
(4)Star Pensioner Loan:106/4 dated 03.04.2012
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(5)Star Personal Loan: 106/3 dated 03.04.2012
(6)Star Vehicle Loan: 106/05 dated 03.04.2012, 106/146 dated 04.12.2012
Prepared by Team of Credit Department, ZO, Ujjain

Note : The given list/points are illustrative and not exhaustive. Depending upon
the requirement on case to case basis, branch may require additional
information/papers/documents from proponents.

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