Various Plus Schemes of the Bank

 

 

Savings Plus Account

 

Rationale:

Ÿ           It is available only on computerised branches.

Ÿ           The new product offers maximization of interest on SB account to effectively combat competition.

Ÿ           To provide an automatic facility to high networth SB customers for their excess funds in SB account to be invested in term deposits on an on-going basis without manual intervention.

Ÿ           To maximise customers interest earnings, by automatically investing funds in term deposits.

 

Eligibility: Individuals including minors aged 10 years and above and NRIs, in single or joint.

 

Terms & Conditions:

Ÿ           Customer should open a new SB account or an existing SB account should be re-designated.

Ÿ           Minimum balance  - Rs.10,000.00, if it falls below this level, a service charge of Rs.50.00 for the month will be levied.

Ÿ           Customer should choose a threshold limit in excess of Rs.10,000.00 deposits beyond this limit would be automatically transferred to term deposits account on 10^th and 20^th of every month, for a 6 months maturity period.

Ÿ           All term deposits would be created under the scheme of SBI MODS, in units of Rs.1,000.00 each.

Ÿ           In case the customer wants the money back, he can withdraw the money held in SBI MODS using cheques issued to Savings Plus Account.

Ÿ           Period of maturities 6 to 36 months (6/12/24/36).

Ÿ           Interest / maturity proceeds will be credited to Savings Plus Account.

Ÿ           For SPA, no separate passbook will be issued but customer will be advised through mail as and when term deposits is created.

Ÿ           Customer is free to change the threshold limit at any time with a nominal charge of Rs.25.00. But there is no charge if the threshold limit is Rs.25,000.00 and more.

Ÿ           Balances (lying without transferring to term deposits) in the SPA will carry a interest rate as applicable to SB account.

Ÿ           No overdraft limit will be sanctioned to the customer against the amount in SBI MODS.

 

 

SBI CAPGAINS PLUS

 

v     New Product - Capgains Plus:

Þ    Exemption of tax on capital gains made on sale of capital assets is permissible under the Income Tax Act provided the sale proceeds are re-invested in specified assets (detailed in the circular) within a specified time period which ranges from 2 to 3 years.

Þ    Capital Gains Account Scheme, 1988 was introduced by the Government at all public sector banks to enable Income Tax assesses in obtaining exemption from income tax on capital gains by parking funds arising out of sale of capital assets upto the specified period before re-investing in specified assets. Deposits can be made in the form of a savings bank account or a TDR.   

Þ    Though the Capital Gains Account Scheme, 1988 is available at all our branches (other than rural), it has remained a non-starter due to non-availability of various forms and ignorance about the scheme at operating level.

Þ    The new product Capgains Plus puts at one place all relevant instructions on the scheme and standardized formats of forms required which are annexed to the circular.

Þ    The minimum deposit is Rs 1,000.00 for a savings bank account and  Rs 5,000.00 for a Term Deposit

Þ    Rate of interest is similar to domestic savings bank/TDR account. However, interest on savings bank account under the scheme will be applied half-yearly. Staff members and pensioners are eligible for 1% higher rate of interest. Senior citizens will be eligible for additional interest as applicable for domestic term deposits.     

Þ    No loan facility is available against deposits made under the scheme. The term deposit can neither be accepted as margin money for non-fund based nor as collateral to any type of fund based facility.

Þ    ATM Card/cheque book is not issued for savings bank account opened under the scheme.

Þ    Withdrawals from savings bank accounts can be made only on specified forms and require a photograph of the depositor. At the time of any withdrawal, the depositor shall furnish in duplicate, the details regarding the manner and extent of utilization of the amount of the immediately preceding withdrawal.

Þ    A depositor intending to withdraw from his TDR account will first apply for transfer of the amount to his SB account and then withdraw as per procedure mentioned above. Premature payment of a TDR will normally be permitted only after production of a specific letter of authority from the concerned Income Tax Officer.

Þ    The amount withdrawn shall be utilized by the depositor for purposes specified at the time of making the deposit within 60 days of the withdrawal.

Þ    The account can be closed only with the approval of the Assessing Officer who has jurisdiction over the depositor.

Þ    Addition/deletion of names is not allowed without prior approval of the Income Tax Officer.

Þ    All extant instructions on deceased cases will be applicable to the deposits made under the scheme.

Þ    TDS shall be deducted as per extant rules.

Þ    An attractive life cover under Super Suraksha scheme of SBI Life is available against payment of a special premium of Rs 450 per lac per annum.

 

ARTHIAS PLUS

 

·        New Product ? Arthias Plus:  As per recent RBI guidelines, loans given by rural/semi-urban branches to Arthias/commission agents for meeting their working capital requirements on account of credit extended to farmers for supply of inputs can be classified as Agricultural advances (Indirect finance to agriculture).

Ø      The scheme has been introduced with the twin objectives to finance commission agents (arthias) against their receivables from farmers as well as to increase lendings under priority sector.

Ø      Finance upto a maximum of Rs 25 lac can be extended in the form of Cash Credit (Hypothecation of Book Debts not older than 6 months) against a margin of 40%.

Ø      While loans sanctioned by rural/semi urban branches under the scheme will be classified as Agricultural Advances, loans upto Rs 10 lac sanctioned by urban and metro branches under the scheme will be classified as SBF advances and those above Rs 10 lac will fall under the C&I segment.

Ø      The application and assessment will be as applicable to trade advances.

Ø      At the end of the cropping and marketing season, the borrower will liquidate the account fully and the review/renewal will be done on the lines of trade advances.

 

 

v     Arthias Plus ? additional instructions:

Þ    Rate of interest on credit limits above Rs 10 lac but below Rs 25 lac under the Agriculture Segment will be 1% above SBAR with a minimum 11.50% p.a.

Þ    The document to be obtained for financing Book Debts in the Agriculture segment is AB 1 i.e.   Hypothecation Agreement (which has the clause to cover the book debts)

Þ    A Book Debts Statement as on 28^th February may be obtained from borrowers in addition to the half yearly statements stipulated under the scheme to prevent the account from being classified as a NPA under IRAC norms

Þ    The power structure for sanction of a proposal under the scheme will be the same as applicable to advances sanctioned against  pledge/hypothecation (including hypothecation of book debts) of goods.

 

 

AUTO CLEAN

 

Small Business Finance ? new product ? Auto Clean : The product has been introduced to finance purchase of CNG/LPG conversion kits by taxi/autorickshaw owners and its focus is on metros where such conversion is required under law. A term loan of upto Rs 25,000.00, repayable in 3 years by existing borrowers and in 2 years by other borrowers can be sanctioned under the scheme for purchase of conversion kits. The rate of interest is 1.5% below SBMTLR. Full details including a specimen of the application cum appraisal form are provided in the circular.                   

 

 

CYBER PLUS

 

Rationale:

To tap the potential in rural sector in view of rapid growth in internet telecom and IT enabled services by financing internet / cyber cafe.

 

Eligibility:   KIOSK operator with basic computer knowledge and age 20-45.

 

Purpose:   Consultancy / communication services / e-Governance / education / entertainment.

 

Type of Advance:       Composite loan facility.

 

Loan amount:    Maximum Rs.50000.00

 

Rate of Interest:       0.75% below SBMTLR, i.e. 10.25%p.a

 

Rapayment:      36 to 40 monthly instalments with 3 months moratorium period.

 

Security:   Primary: Hypothecation of PC and other hardware, furniture, etc.

Collateral: Nil (to be covered under CGTSI)

 

Documentation: Composite loan agreement.

 

Guarantee cover: CGTSI Cover

 

Processing Fee: Waived for the current year.

 

Insurance:        100% of the loan amount.

 

Inspection:        Annual

 

Other terms:     Under tie-up arrangement with N-Logue company or any other agency.

Ø      Role of N-Logue (A company promoted by IIT, Chennai for enabling internet facilities in rural centre).

Ø      N-Logue identifies partners and provides logistic support and marketing.

Ø      Provides training / installation / maintenance and insurance.

 

DAIRY PLUS

 

·        DAIRY PLUS - Scheme for financing dairy units :  The scheme has been launched to finance milk producing members of ?AMUL? pattern societies in Gujrat.

Ø       Individual farmers who are

a)    members of these societies for more than 2 years producing and selling at least 1000 litres of milk to the society,

b)    are below 65 years of age and

c) own minimum one acre of land for cultivation of fodder for every 5 animals owned will be eligible for finance under the scheme.

Ø      A loan of Rs 1.50 lac for purchase of milch animals, Rs 0.40 lac for milking machine, Rs 3,600.00 per animal for construction of shed and Rs 5,000.00 for chaff cutter can be given under the scheme. The total loan amount at one time should not exceed Rs 2 lac. Operative details are provided in the circular. 

 

 

DOCTOR PLUS

 

To meet the growing expectations of the medical practitioners a scheme ?DOCTOR PLUS? has been designed to finance qualified medical practitioners:

v     For buying equipments, 

v     Setting up clinic, clinic-cum-residence, X ray lab, nursing homes, pathological clinics, polyclinics etc

v     For Drug stores

v     For purchase of vehicles, ambulance, computers etc

v     Expansion/renovation etc of existing premises.

v     Any other activities related to medical profession.

Advantages:  i) Hassle-free product.  ii) Simplified Credit Scoring Model    and

                    iii) Portfolio with the lesser probability of NPAs.

 

·         The product has been designed to meet credit requirements of medical practitioners for buying equipments, setting up clinics, pathological labs, etc. The sanctioning process has been simplified by introducing a simple credit scoring system. Concessional rates of interest shall be charged which are detailed in the circular. The important features are listed below :

·        maximum amount - Rs 15 lac in rural & semi-urban areas ( with a sub-ceiling of Rs 3 lac for working capital) and Rs 10 lac in urban areas areas ( with a sub-ceiling of Rs 2 lac for working capital).

·        repayable in 5 to 10 years

·        Moratorium upto 6 months ( for construction ? upto 12 months )

·        Margin ?  upto Rs 25,000.00 ? nil, Rs 25,000.00 & above to Rs 5 lac ? 10%, Over Rs 5 lac ? 20%

·        Documentation ? A composite loan document is being drafted by Law Department. Meanwhile the list of documents to be obtained is annexed to the circular.   

·        Security ? Besides primary security, tangible collateral security  for loans over Rs 5 lac to be obtained.

·        Credit Scoring Model ?  Those scoring 60% and above will qualify.

 

 

FLEXI LOAN

 

·        ?FLEXI LOANS? under SBF :  The product ?Flexi Loan? which is a general purpose term loan has been suitably modified and extended to the SBF segment also. The important features are listed below:

·        minimum and maximum amount - Rs 5 lac and Rs 20 lac respectively.

·        repayable in 3 to 5 years

·        Initially  to be extended to established traders only - should have earned pre-tax profits in the last three years.

·        Margin ? 20%

·        Interest ? as applicable to SBF Term Loans

·        Security ? besides primary security, collateral security to the extent  of 100% of the limits sanctioned

 

 

GAVESHAK PLUS

 

v     P Segment Advances - New  Product ? Gaveshak Plus: The product is aimed at another category of P segment borrowers namely, scientists and administrative staff of various research institutions all over India.

Þ    The eligible persons will be offered the same basket of loans and concessions as extended to teachers under the Teacher Plus scheme.

Þ    The concessions will be offered to

1.    Permanent research and financial & administrative staff who have put in a minimum of two years of service.

2.    Staff of only those institutions which provide check-off facility

Þ    Scheme wise concessions and the list of institutions eligible to get finance under the scheme are annexed to the circular. 

 

JUSTICE PLUS

 

This product is offered to permanent employees of High Courts, Dist Courts, Courts of Civil Judge/Judicial Magistrates, Small Causes Court, DRT, CAT, Industrial Tribunals and Labour Courts etc. Lawyers practicing in these Courts are not eligible under this scheme.  They may be considered under any of our normal schemes. The package with specific positioning is being termed as ?JUSTICE PLUS? wherein special concessions are being offered in various P-Segment products, in terms of rates of interest, margin and processing fee.  All other terms and conditions of the relative schemes remain unchanged.

 

Rationale: i) To give a thrust to ?P? Segment advances by exploiting the potential offered by permanent employees of various courts.

ii) These employees are respectable and active opinion builders and have excellent repayment history in general.

iii) Many of our branches are situated in the vicinity of court complexes; there is considerable potential for garnering ?P? advances business from this segment.

 

·        Some existing P segment loan schemes with attractive concessions in rate of interest, processing fees and margins have been packaged together with specific positioning as a new product named Justice Plus. The product can be offered to :

·        Permanent employees of High Courts, District Courts, Courts of Civil Judge/Judicial Magistrates, Small Causes Court, DRT, CAT, Industrial Tribunals and Labour Courts etc.

·        The scheme does not apply to panchayats as also to lawyers practicing in these courts who may be financed under our normal schemes.

·        Joining fees of SBI International Classic Card will be waived for eligible customers.

·        Optional SBI Life insurance cover at a lower premium

·        Flexibility to fix own repayment schedule in housing loans

·        Check-off facility should be obtained in all cases.

·        Relaxations vis-à-vis regular schemes are same as applicable to Teacher Plus scheme.

 

 

KRISHI PLUS

 

 

·        AGL Advances ? New Product ? KRISHI PLUS :  The scheme has been formulated to finance tractors to rural youth for custom hiring purposes besides assisting Small and Marginal farmers both directly and indirectly. Salient features of the scheme are :

·        Applicable for purchase of new tractors and implements only.

·        Loans to be sanctioned only in areas where scope of custom hiring is good. A minimum of 1,500 hours of work per year should be available.

·        Initially, not more than one tractor should be financed in a village under the scheme.

·        Applicant should be below 35 years, minimum 8^th standard pass, having a valid driving license, self or family holding 1 acre of cultivated land and minimum 3 years of satisfactory dealing with the bank.  

·        Maximum loan amount - Rs 3 Lac including trailer and accessories.

·        Margin ? 25 %

·        Repayment in 6 to 7 years including moratorium period of 6 months.

·        Security ? Besides hypothecation of the tractor/accessories as primary security, mortgage of land of the applicant or his family OR third party guarantee to be obtained as collateral security.

·        Interest ? as applicable to agricultural term loans.

·        Insurance ? only third party cover to be obtained with bank clause after obtaining an undertaking from the applicant (specimen annexed to the circular).

     

 

MEDI PLUS

 

Specialised medical treatment like coronary by-pass, hip and knee replacement surgery etc are few examples of medical treatments, which entail heavy expenditure running into a few lacs of rupees.  As people generally find it difficult to arrange funds at short notice to make payments to hospitals, there is a good demand for personal loans to meet such exigencies.  It has therefore, been decided by the Bank to launch a separate scheme called ?MEDI PLUS? for medical treatment in respect of certain listed diseases at some speciality hospitals.

 

·        Personal Banking Advances ? new product -MEDI Plus  : A new scheme to meet payments to be made at a short notice to hospitals for specialised medical treatment has been introduced. Initially the scheme will be made available for treatment of diseases where the probability of mortality is less than 5%. A list of such diseases is annexed to the circular. A loan under the scheme will be available for treatment of such diseases at speciality hospitals pre-approved by the Circle and a list of such hospitals is annexed to the circular.

·        Eligibility criteria are broadly as for other P Segment schemes and the minimum income should  be Rs 10,000.00 p.m. for salaried persons/pensioners and Rs 3 lac p.a. for self-employed persons.

·        Minimum loan amount is Rs 50,000.00 and maximum amount is 12 times the net monthly income or one year?s net annual income for self-employed subject to a maximum of Rs 2 lacs. For pensioners the maximum loan amount is Rs 1 lac.

·        Margin ? 20% of the total cost of treatment

·        Interest ? 0.75% above SBMTLR

·        Security ? Tangible collateral security covering at least 110% of the loan amount should be taken. Third party guarantee of the spouse to be obtained wherever feasible.

·        Repayment ? maximum of 60 months through EMI.

 

 

PARYATAN PLUS

 

·        New Product ? SBI Paryatan Plus:  The product has been formulated to develop tourism and related activities.  Finance can be extended in the form of Cash Credit, Term loan or Letter of Credit/Guarantee under SBF and C&I segments to Individuals, Partnership Firms, Limited Companies and Trusts for purposes like construction/renovation of hotels, restaurants, purchase of luxury coaches/house boats etc. detailed in the circular. Other important features are listed below :

Ø      Quantum ? minimum Rs 2 lac

Ø      Repayment ? Term Loans would be repayable in 3 to 7 years including a startup period not exceeding 18 months

Ø      Margin -  20%

Ø      Documentation ? As per existing documents applicable to SBF/C&I advances

Ø      Interest ? As per extant instructions for SBF and C&I segments

Ø      Security ? Besides primary security, tangible collateral security in the form of immovable property, TDRs, NSCs, etc. equivalent to at least  75% of the loan amount  to be obtained.

 

 

POLICE PLUS

 

Under this scheme a composite package is offered to employees of State Police/Central Police Forces like CRPF, BSF, ITBP, RPF etc, wherein special concessions are being offered in various P-Segment products, in terms of rates of interest, margin and processing fee.  All other terms and conditions of the relative schemes remain unchanged.

 

Rationale: To give thrust to ?P? Segment advances by exploiting the potential offered by permanent personnel in the establishment of State and Central Police forces.

 

PRAVASI PLUS

 

·        New Product ? PRAVASI  PLUS: The product has been designed to tap maturing RIB funds by enabling NRIs to arrange financial assistance to their resident relatives for start-up ventures at liberal terms. A package of existing loan products is being offered with attractive concessions against the collateral security of FCNR(B) and NR(E) Rupee Term deposits under the scheme.

Ø      The loan products being offered under the package are, Doctor Plus, Financing of combine harvester, Financing of Tractor, Flexi Loan (SBF Segment), Auto Loan (for Transport Operators) and Personal Loan.

Ø      The concessions being offered are:

1.    Uniform concessionary rate of interest (1.15% below SBMTLR for term loans, 1.15% below SBAR for overdrafts and SBMTLR for Personal Loan).

2.    Waiver of processing fee and prepayment penalty.

3.    As long as the asset is Standard, physical inspection where specified may be done once a year.

Ø      The maximum loan amount will be as specified in the scheme or the amount of FCNR(B)/  NR(E) Rupee Term deposit offered as security whichever is less.

Ø      Apart from primary security as stipulated in the respective scheme, the loan would be collaterally secured by obtaining a Guarantee Agreement from the NRI to the extent of amount of FCNR(B)/NR(E) deposit offered as security for the loan.

Ø      Branch Managers have been vested with the authority to reset/reduce the margins under the scheme.

Ø      The loan is to be recalled if interest/instalments remain irregular for more than two months. The outstanding amount should be liquidated by enforcing premature payment of the FCNR(B)/NR(E) deposit under lien. Prior permission from Controllers is not required for enforcing the Exit Policy.

Other terms and conditions and application forms would be as applicable to the relative loan scheme.

 

 

RAKSHAK TRACTOR PLUS

 

v     AGL Segment - New Scheme ? Rakshak Tractor Plus: The scheme has been introduced, initially under an agreement with Mahindra & Mahindra, to enable retired/retiring servicemen to resettle by mechanizing the farms belonging either to them or their immediate family members (i.e., father, mother, brother wife and children). Mahindra & Mahindra will co-ordinate with the Director General of Resettlement to identify eligible applicants and sponsor the application to the nearest branch handling  agriculture loans. Salient features of the scheme are as under:

 

Þ    Eligibility:

?        For tractors below 35 HP ? minimum of 4 acres of perennially irrigated land

?        For tractors above 35 HP ? minimum of 6 acres of perennially irrigated land

Þ    Quantum of finance - As per quotation of the tractor and accessories excluding i) the concessions offered under the scheme and ii) margin.

Þ    Margin ? 10%

Þ    Interest ? 0.50% below SBMTLR minimum 10.50% for loans above Rs 2 lac to Rs 5 lac

Þ    Assessment ? Minimum DSCR should be 1.75

Þ    Insurance ?  Only  Third Party Insurance after obtaining letter of undertaking

Þ    Repayment ? 7 to 9 years including a maximum moratorium of 12months.

Discretionary Powers ? As per existing discretionary power structure for Agriculture Term Loans.

 

 

RENT PLUS

 

·         Rent Plus-Modifications:  The scheme has been modified as under:

Ø      The minimum loan amount under the scheme has been reduced from Rs 1,00,000.00 to Rs 50,000.00.

Ø      The General Manager (Network) of the circle is now vested with the discretion to consider cases of owners whose properties are leased out to lessees other than MNCs/Banks/large and medium sized corporates.  This discretion was previously vested with the Circle Management Committee.

 

·        Rent Plus ? Modifications : Loans above Rs 1 crore will now require prior administrative clearance from CGM, Circle instead of NBG, Corporate Centre. In all cases where bank is the tenant and the lease deed provides for renewal, the optional period may be included for considering the residual period not exceeding 7 years.

 

v     Rent Plus Scheme ? Documentation: In cases where the lessee is not agreeable to execute the Tripartite Agreement, a Power of Attorney is required to be from the lessor. The Power of Attorney should be obtained on the format annexed to the circular and may be suitably modified as per requirements in each particular case. 

 

v      Rent Plus Scheme:

A.     Modifications: The scheme has been modified as under:

Þ     The maximum loan amount will now be Rs 7.50 crore at metro centres and Rs 5.00 crore at non-metro centres.

Þ     There will be no difference in the ceiling on account of constitution of the borrower.

Þ     The maximum repayment period will be 7 years or the residual lease period whichever is less.

Þ      Administrative clearance for deviation from laid down norms will be permitted as under:      

Sanctioning Authority	Deviations to be permitted by
Any authority below CCC-II	CCC-II
CCC-II	CCC-I
CCC-I & above	Sanctioning Authority

           

B.    Obtention of Power of Attorney:

Þ    In cases where the lessee is not agreeable to execute the Tripartite Agreement, a Power of Attorney is required to be obtained from the lessor. The Power of Attorney should be obtained on the format annexed to the circular and may be suitably modified as per requirements in each particular case.

 

Þ    The Power of Attorney to be obtained is a Special Power of Attorney to be obtained only for a specified lessee and not a General Power of Attorney. Accordingly, it would be in order, if it is not registered with the Registrar of Assurances. It would be sufficient if the registration is made only with the lessee and their formal concurrence is obtained.

 

 

 

SAINIK PLUS

 

·        P Segment Advances ? New Product ? SAINIK PLUS: The scheme is another variant of the Teacher Plus Scheme and is targeted at Army Personnel (NCOs and Jawans).

Ø      The scheme puts in place a mechanism of ascertaining the place of posting of an NCO/Jawan at any given time whereby the recovery of instalments under check-off option can be ensured.

Ø      All Non-Commissioned Officers (NCOs)/Jawans of the Indian Army who can provide:

i.                   Check-off facility from the Commanding Officer (CO) of their Regiment Batallion

ii.                 An irrevocable undertaking to:

a.    Maintain their salary account with the branch which provided the loan

b.    Not to shift their salary account from such branch

c.     Keep the branch abreast of their address of till the loans are fully repaid

 will be eligible for finance under the scheme.

Ø      Housing loans under the scheme will carry interest rates as applicable to other Plus Schemes.

Ø      For other loans, the applicable rates of interest will be 0.25% lower than those charged under Teacher Plus scheme. Operative details and applicable interest rates are annexed to the circular.

 

 

SBI CASH PLUS

 

v     SBI has launched two products ? State Bank Cash Plus and SBI Credit Khazana. State Bank Cash Plus is an international ATM-cum-Debit Card which allows the customer to draw cash from Maestro/Cirrus branded ATMs in India or abroad and is also accepted at merchant establishments across the world. The other product, SBI Credit Khazana, is a scheme for the benefit of housing loan customers who have serviced the loan satisfactorily for at least a year. Under the scheme, all these customers will have the benefit of lower interest rates, lower margins, etc. for various other retail products of the bank like car loan, education loan, personal loan, etc.

 

 

 

SBI CREDIT KHAZANA

 

v     P Segment Advances - New  Product ? SBI Credit Khazana: The product offers a basket of loans ( Car Loan, Scoom, Education Loan, Personal Loan, Tractor Loan and any other loan for which the borrower is eligible under Plus Schemes ) on concessional terms and conditions to existing Housing Loan customers who have maintained financial discipline in servicing their loan accounts. Important features of the scheme are:

Þ    Eligibility ? Individual and joint owners who have:

1.    availed a housing loan

2.    satisfactorily serviced the loan account for at least one year after the moratorium period

3.    created equitable mortgage and

4.    provided margin @ minimum 15% for purchase/construction of house and 30% for purchase of plot.

Þ    The applicant will automatically be entitled to one or more loans offered under the package provided he/she fulfils the eligibility criteria of the individual scheme. 

Þ    Concessions

1.    Margin ?  concession of 5 to 10% as detailed in the circular

2.    Interest ? concession of 0.25% for all loans offered under the scheme. This concession will not be provided for the housing loan already obtained by the applicant.

Þ    Documentation ? Separate agreements as specified for each scheme will be obtained for each loan sanctioned under the scheme. The equitable mortgage created for the housing loan will be extended to other loans availed under the scheme.

Þ    All other terms and conditions are same as applicable to individual schemes being offered under the package. 

 

 

SME CREDIT PLUS

 

·        SME Credit Plus for SSI - modifications : The scheme has been modified as under:

 

	Existing Instructions	Revised Instructions
1. Eligibility	Units rated SB3 and above	Units rated SB4 and above
2.Sanctioning process	As applicable to Clean Cash Credit	Aggregate of regular limit including SME Credit Plus as per delegation of powers
3. Documents	As applicable to clean cash Credit	Documents for aggregate credit facilities inclusive of SME Credit Plus

 

 

 

 

SWAROJGAR CREDIT CARD SCHEME (SCC)

 

Rationale:

Ø      SCC model scheme prepared by NABARD for fishermen, rickshaw owners, self-employed persons, etc.

Ø      To provide timely and adequate credit to small artisans, handloom weavers, service sector, fishermen, self-employed, rickshaw owners, other micro-entrepreneurs, etc.

Ø      To provide flexible, hassle free and cost effective credit.

Ø      Both WC and Term loan can be given including for consumption needs.

 

Loan Amount:

Max ? Rs.25000.00

 

Type of loan:

Composite loan ? covering term loan and recurring cash credit.

Revolving cash credit may be fixed as a % of turnover divided by the number of operating cycles per annum.

 

Period:

Normally valid for 5 years; subject to simple renewal annually.

 

Others:

Ø      A laminated credit card would be issued as also a pass book. Fees Max Rs.50.00

Ø      Card and pass book (with photo) to be produced for each withdrawal.

Ø      SCC can be issued to SHGs also. Members are jointly and severally liable for payment.

Ø      No drawal to be allowed if revolving cash credit remains outstanding for more than 12 months.

Ø      Aggregate credits in the account during the 12 months period should normally be equal to the maximum outstanding in the working capital component plus the term loan instrument. The borrowers will be covered by a group insurance scheme; premium to be borne 50:50 by the bank and the borrower.

 

 

TEACHER PLUS

 

It s composite package specifically designed wherein special concessions are being offered in various P-Segment products, in terms of rates of interest, margin and processing fee.  All other terms and conditions of the relative schemes remain unchanged.  The product is offered to

i)                  Permanent teachers and

ii)                permanent administrative staff of educational institutions and universities.

 

Rationale:  i) Teachers command high respect in the community and have excellent repayment history in general as normally check-off facility is available.

ii) To give a big thrust for ?P? segment advances by exploiting the potential offered by teaching community.

iii) To meet the long standing expectations for some special concessions of the educational institutions where we are having tie-up arrangements.

 

·        P Segment  Advances ? Teacher Plus  : Some existing P segment loan schemes with attractive concessions in rate of interest, processing fees and margins have been packaged together with specific positioning as a new product named Teacher Plus. The product is directed at the teaching community and can be offered to :

·        Permanent teaching and administrative staff of schools, colleges, universities and educational institutions which have been regular in payment of salary for at least the preceding two years.

·        Check-off facility should be obtained in all cases.

       Changes vis-à-vis regular schemes have been highlighted in the table below:

 

Scheme	Extant Margin	Proposed Margin	Extant intt. rate	Proposed intt. rate	Extant proc. Charges	Proposed proc. Charges
Personal Loan	Nil	Nil	2.35% above SBMTLR ( 13.60%)	2.00% above SBMTLR (13.25%)	1% of the loan amount	0.75% of the loan amount
Car Loan	New Cars Upto 4 lacs 15% Above 4 lacs 20% Old cars Upto 2 yrs old 30% 2-4 yrs old 40%	New Cars For any loan amount 10% Old cars Upto 2 yrs old 20% 2-4 yrs old 30%	SBMTLR (11.25%)	SBMTLR (11.25%)	Nil	Nil
Scoom	Upto 50000 10% Over 50000 20%	Upto 50000 5% Over 50000 10%	0.85% above SBMTLR (12.10%)	0.50% above SBMTLR (11.75%)	1% of the loan amount	0.75% of the loan amount
Festival Loan	Nil	Nil	2.50% above SBMTLR ( 13.75%)	2.25% above SBMTLR (13.50%)	Rs 100 per application	Rs 80 per application
Housing loan	Purchase of land 30% Purchase of new/old house/flat or construction/extension of existing house/flat 15% Repair/renovation 20%	Purchase of land 30% Purchase of new/old house/flat or construction/extension of existing house/flat 10% Repair/renovation 15%	Upto 5 yrs      2% below SBMTLR (9.25%) 5-10 yrs 1.5% below SBMTLR (9.75%) 10 yrs and bove 1% below SBMTLR (10.25%)	Upto 5 yrs          2.25% below SBMTLR (9.00%) 5-10 yrs 1.75% below SBMTLR (9.50%) 10 yrs and above 1.25% below SBMTLR (10.00%)	For loans above Rs 25000 0.5% of Loan amount ( Currently waived upto 31.1.03)	For loans above Rs 25000 0.5% of Loan amount ( Currently waived upto 31.1.03)

 

 

 

TRIBAL PLUS

 

·         P Segment Loans-new scheme-Tribal Plus: A special housing scheme for tribals hailing from hill states of North East and tribal areas in other Circles, especially Chandigarh, Bhopal, Lucknow, etc. has been launched by making suitable modifications in the existing scheme for housing loans. The scheme will be applicable only in areas where mortgage of land is not possible due to the following reasons:

Ø      No cadastral survey has been done.

Ø      No system of issuing Patta, Patta no. is in vogue.

Ø      Transfer of land is restrictive i.e., cannot be transferred from a tribal to a non-tribal etc.

Ø      Ownership of land lies with the community or the Chief of the village.

The detailed scheme is annexed to the circular. Some salient distinguishing features of the scheme viz-a-viz the regular housing loan scheme are:

Purpose:

Ø      Construction / purchasing of new house / flat or old house (not more than 10 years); repairs, extension or renovation.

Eligibility:

Ø      Individuals aged not less than 21 years and not more than 60 years and who are permanent employees of Central/State/ PSU/ reputed Pvt sector units and within min 5 years of service of Class I / Gazetted officers or 10 years in other grades.

Ø      Check off facility must be available.

Loan amount:

Ø      The maximum loan amount is Rs 5 lac or 24 times the net monthly  income whichever is lower.

Margin:

Ø      Minimum margin ? 25%.

Security:

Ø      Third party guarantee is required.

Ø      A lien on Provident Fund of the applicant may be noted wherever possible.

Ø      A life insurance policy for an amount equal to the loan amount should be obtained by the applicant and assigned to the bank. Recovery of premiums should be a part of the check off where it is not upfront and one-time.

Ø      Liquid securities aggregating not less than 30% of the amount of the loan should be obtained as collateral security. This stipulation may be waived where mortgage of some other property/ third party group guarantee of 3-4 employees working in the same organisation  and whose salary is paid through the bank is obtained.

Ø      Opinion reports should carry a specific reference to verification of ownership of land by the applicant on the basis of available records.

Ø      The applicant should give a sworn affidavit that he/she is the owner of the land

Ø      An agreement to mortgage is also to be obtained for creating mortgage at a later date should such a situation arise due to change in Government regulations.

Ø      Statutory clearance from local authorities required for construction of a house in the area should be obtained and kept with documents.

Repayment:

Ø      10 years EMI or remaining period of service whichever is less, with a moratorium period of 12 months from 1^st disbursement or construction period whichever is earlier.

Processing fee:

Ø      Above Rs.25000.00 @0.5% of the loan amount

 

 

Miscellaneous Instructions:

 

 

1.    New product ?Festival Loan for public? has been introduced.

 

Rationale: A product to cater to short term requirement of finance of low and middle income group individuals who cannot satisfy the requirements of Personal Loan Scheme when a loan is required for expenditure relating to a festival.

 

2.    Recently Margin and Interest rate on advances against Bank?s term deposit /special term deposit have been revised.

 

Rationale:

i) RBI directives granting freedom to banks to charge interest rates on loans against Bank?s own TDR/STDRs without reference to their PLR.

ii) Fierce competition prevailing in the Banking Industry.

iii) Comfortable liquidity available with the bank.

 

(ROI: 0.75% above TDR/STDR rate for loans of Rs 1 crore and above and

               1% above TDR/STDR rate for loans below 1 crore

Margin: i) 10% for loans upto Rs 10,000.00 and tenor less than 36 months and

ii) Min of 10% for loans above Rs 10,000.00 and for loans of tenor 36 months and above)

 

 

Loan for Earnest Money for allotment of a plot/House/Flat: It is a new scheme to finance individuals (above 21 years of age with steady income) for earnest money for booking of residential plots/built-up houses being sold by Govt. housing agencies line Urban Development authorities like, PUDA, HUDA and Housing Boards. Type of loan will be Demand Loan. Maximum loan amount will be least of the following:---

        i) 90% of application money

        ii) 10 times of NMI     

        iii) Rs 100,000.00

Processing fee:  0.50% of the loan amount minimum Rs 100.00

 

Rationale: i) Under our existing housing Loan scheme, there is not provision for financing applicants for payment of earnest money, this leaves a potential market for retail finance untapped.

ii)  To tap the potential retail market for granting P-segment advances for payment of earnest money at the time of application for allotment of a house/flat.

iii) The persons financed under this scheme are most likely to be converted into our Housing Loan borrowers thereby increasing our housing loan portfolio.

 

·        Introduction of scheme for recognition of excellence in ?P? Advances : It has been decided to introduce a scheme for recognition of excellence in ?P? advances for branches. The scheme will be operational from the financial year 2002-03 and will not include PBBs as there is a separate scheme for recognition of their performance. Details are provided in the circular.

 

·         Check Off Facility: During a recent review of the implementation of ?Teacher Plus? scheme, it was observed that, branches are interpreting  check?off as the arrangement where the salary disbursing officer undertakes to deduct loan instalments from the salary of the borrowers and remits the same to the bank, which is a narrow definition of check-off. For good corporates and reputed institutions, the connotation of check-off facility may be taken to include situations where the corporate/institution pays the employees? salary through their savings/current account with the bank and an irrevocable standing instruction is recorded by the employee for recovery of the loan amount from his savings / current account. The corporate/institution should also undertake to inform SBI if and when there is severance due to transfer/ retirement etc.

( Circular letter no. CirCO/Adv/31/03-04 dtd. 05.05.03)

 

v     Group Insurance Scheme of SBI Life for Housing Loan Borrowers:

A.     Modifications: SBI Life have enlarged the scope of the scheme by offering insurance cover to joint borrowers. Some important features are:

Þ    Each joint borrower will be covered for the outstanding loan amount for the entire duration of the loan.

Þ    The premium payable by the elder of the joint borrowers would be as per his/her age.

Þ    The younger of the joint borrowers will be extended a discount of 50% on the premium applicable to his/her age.

Þ    In case of death of a joint borrower, the outstanding amount would be repaid by SBI Life and the insurance cover for the surviving joint borrower would stand terminated.  

Þ    In case of joint staff housing loans, a discount of 5% would continue to be available to the elder of the joint borrowers. The younger of the joint borrowers would be required to pay only 47.5% of the premium applicable to his/her age.

Þ    Operative instructions in case of death of a joint borrower, administrative charges etc. are detailed in the circular.

B.    A specimen of the agreement to be obtained whenever an additional housing loan for payment of the premium amount is granted is annexed to the Circular

 

New Deposit Schemes For NRI Customers

 

		PRAVASI SAMRIDDHI	PRAVASI VAIBHAV
1	Who is eligible to invest	Any NRI (except US based investors) can deposit either singly or jointly with another NRI. Also can be opened in the name of minors subject to local regulations.	Any NRI/PIO. The USD amount would be converted into rupee at TT buying rate to issue on NRI STDR for 1 year at applicable rate. A forward contract would be booked simultaneously for 1 year.
2	Currency	USD, Euro & GBP	USD
3	Min Deposit	USD/GBP/EURO 5000	USD 10000
4	Tenor of Deposit	1,2 & 3 years. Bank retains the option to refund principal amount at the end of 18 months for deposits upto 3 years	1 year
5	Interest Rate	1 year ? 1.67% 2 years- 2.37% 3 years -3.05%. Interest is payable at floating rate. Floating rate deposits are subject to interest reset at 6 months intervals	Currently (w.e.f. 16/09/03) 2.40% subject to change as per rate prevailing at the time of deposit.
6	Premature closure of the deposit	Permitted and interest will be paid at 1% below the interest at applicable rate for the actual period run.	Allowed but no interest is payable; the forward contract booked would need to be cancelled and any loss in such cancellation, will be recovered from the customer.
7	Loan facilities	90% of the amount of deposit at 0.60% over the interest payable on one deposit.	Loan in INR upto 90% of the deposit plus accrued interest. Interest at 0.75% above the applicable rate on deposit will be charged for loans upto Rs.1 crore and 1% above the rate applicable for loans exceeding Rs.1 crore.
8	Branches offering the product	Bahrain OBU, Nassau OBU and Singapore OBU	26 designated branches all over India, SPB, Bangalore and Mangalore are the authorized branches to accept the deposit in Karnataka.
9	Documents to be submitted along with the application	Application should be submitted along with copy of passport and any one of the following documents duly attested by a Bank / Indian Embassy / High Commission / Consulate / Notary	Application along with remittance instrument should be submitted.

 

KANAK DHARA

 

v     Kanak Dhara ? Modifications/Clarifications:  Existing instructions viz-a-viz modifications /clarifications have been detailed in the circular. Some important changes are:

Þ    The product will not be offered to Overseas Corporate Bodies (OCBs) in view of recent RBI directives.

Þ    Full beneficiary details viz proof of address, identity, photograph, signatures are to be obtained where the beneficiary is not the applicant. If the deposit is under NRE/FCNB scheme, the beneficiary must be eligible to open such an account.

Þ    A new account opening form has been designed for NRE/FCNR deposits under the scheme.

Þ    While maturity amount of deposits in Indian Rupees would continue to be paid in round amounts, exact maturity amount would be paid in case of deposits made in Foreign Currency so that the Bankmaster string pertaining to the transaction originating from the paying branch on FD Kolkata, would match with the existing balance at FD Kolkata.

Þ    Minimum maturity value in Foreign Currency will be US$/Euro 2000 with multiples of US$/Euro 1000.