LOANS DEPARTMENT MEMORANDUM TO REGIONAL OFFICE LEVEL CREDIT COMMITTEE SANCTIONING AUTHORITY: RLCC-RH FOR APPROVAL The proposal

falls under the powers of RLCC RH on account of sanction of Housing Loan to staff under staff scheme. Date : MEMORANDUM FOR Sanction of Fresh Housing loan under Staff Scheme of Rs. 18.81 Lacs 01 08 2012

BORROWERS PROFILE Name of borrower Branch/Region Disbursing Branch Classification of Advance Asset Classification Date of birth Date of appointment Age left up to superannuation Shri Manoj Gulati (Manager) Subharti , Ghaziabad Razapur Housing Loan (Non Priority Sector) Not applicable being a fresh case 18 07 1977 ( 35 Years) 04 08 1999 24 Years and 11 Months (299 Months)

APPLICANTS PROFILE IN BRIEF Shri Manoj Gulati has joined our bank in 1999 and is currently posted at B/O Subharti, Meerut as a Manager. He wants to purchase of a residential 2 bedroom flat of area 1041 square ft., whose nd address is Flat no. 201, 2 Floor, Tower I, Officers City, Raj Nagar Extension NH - 58, Ghaziabad from M.R. Proview, Proview Infrastructure. Purchase price of the proposed residential flat is Rs. 20.90 Lacs (including incidental charges), to be purchased in name of Shri Manoj Gulati, as per allotment letter dated 12.07.2012. It may be stated here that the above project has already been approved by us for financing of individual dwelling units by the branches of our region to members / prospective buyers vides RO Ghaziabad letter reference ROG / LOANS / 2011 12 dated 21 02 2012. As per circular HRD / 68 / 31 / 2010 11 / 308 DATED: 29.07.2010

Shri. Manoj Gulati B/O Razapur

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1. Eligibility Confirmed employees with minimum 2 years of satisfactory continuous service in the Bank . 2. Quantum of Loan (under staff scheme) Officer Rs. 20.00 Lac Clerical Rs. 12.00 Lac Sub staff Rs. 8.00 Lac

Maximum quantum of Loan for purchase of new house/ construction/ purchase of plot & construction thereon, including enlargement/construction of additional floor on the existing house Maximum quantum of Loan-for repairs/renovation of existing premises Margin

Rs. 5.00 Lac

Rs. 3.00 Lac 10%

Rs. 2.00 Lac

PRESENT PROPOSAL IN BRIEF AND DETAILS OF PROPERTY TO BE PURCHASED The present proposal is for sanction of Housing Loan of Rs. 18.81 Lacs under staff scheme in favor of Shri Manoj Gulati for purchase of a residential 2 bedroom flat of area 1041 square ft., whose nd address is Flat no. 201, 2 Floor, Tower I, Officers City, Raj Nagar Extension NH - 58, Ghaziabad from M.R. Proview, Proview Infrastructure. Purchase price of the proposed residential flat is Rs. 20.90 Lacs (including incidental charges), to be purchased in name of Shri Manoj Gulati, as per allotment letter dated 12.07.2012. VIGILANCE: - Permission granted and copy of same is also attached. As per vigilance the sources of finance are listed as below Means of Finance Amount OBC Loan under staff scheme Rs. 18, 81, 00.00 Own Savings Rs. 2, 09, 000.00 Total Rs. 20, 90, 000.00 or say 20.90 Lacs (The subject has already paid Rs.1.80 Lacs on 16.06.2012, which may be treated as margin contribution, the applicant is paying the margin contribution through OD a/c. The copy of declaration is attached.) REPAYMENT PERIOD Date of birth Under Staff Scheme 18 07 1977 ( 35 Years) 24 Years and 1 Months (199 Months)

Years left up to superannuation i.e. up to 60 years Maximum Loan tenure for Staff Housing Loan Loan tenure for captioned Staff Moratorium Period

300 months 299 Months 24 Months

ASSESSMENT OF TERM LOAN (HOUSING) (Maximum Permissible Bank Finance) (a) S. No A On Margin Basis Description Purchase cost of Flat Amount Rs. 18.50 Lacs

Shri. Manoj Gulati B/O Razapur

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B C D E F G H

GLPP Premium Incidental charges Total Cost Margin @ 10.00 % MPBF Loan Required Margin available

Rs. 0.50 Lacs Rs. 1.90 Lacs Rs. 20.90 Lacs Rs. 2.09 Lacs Rs. 18.81 Lacs Rs. 18.81 Lacs 10.00 %

(b) Residual Take Home Income Basis Emoluments Drawn (Amount (As per salary slip of June 2012) in Rupees) Basic Pay 23,300.00 Dearness Allowance 14,958.60 C.C.A. 375.00 Others 0.00 Total Gross Salary 38,633.60

Deductions (As per salary slip of June 2012) Provident Fund TDS Vehicle Loan Others Total Deductions

(Amount in Rupees) 2,469.80 2,510.00 1,066.00 961.30 7,007.10

Installment Under Staff Scheme

To be repaid in 299 Months including moratorium period of 24 Months st (1 Installment due in August 2014) Principal shall be repaid in 174 months of installment Rs. 10,810.30 Interest shall be serviced in not more than 101 months after liquidation of the principal.

CALCULATION OF NET TAKE HOME Particulars Gross Salary Less: Deductions as above Less: Deductions on the account of outside borrowings, (if any) Less: Deduction on account of interest on Clean OD facility Less: Estimated deduction for proposed Housing Loan Total Estimated deductions Net Take Home Pay after taking into a/c the above deductions. (Amount in Rs.) Rs. 38,633.60 Rs. 7,007.10 Rs. 0.00 Rs. 2,500.00 Rs. 10,810.30 Rs. 20,371,40 Rs. 18,316.20 Remarks

(52.59 % of Gross Salary) (47.41 % of Gross Salary as against min. required 30%)

Keeping in view the above computation, the requested loan of Rs. 18.81 Lacs under staff scheme is within assessed maximum permissible limit. Further, the subject also fulfills the residual take home criteria of minimum 30 % of gross monthly income.

PRIMARY SECURITY: Equitable of a residential 2 bedroom flat of area 1041 square ft., whose address is Flat no. 201, 2 Floor, Tower I, Officers City, Raj Nagar Extension NH - 58, Ghaziabad from M.R. Proview, Proview Infrastructure. Purchase price of the proposed residential flat is Rs. 20.90 Lacs (including incidental charges), to be purchased in name of Shri Manoj Gulati, as per allotment letter dated 12.07.2012.
Shri. Manoj Gulati B/O Razapur Page 3 of 7
nd

RBI /BANK POLICY ON FINANCING INDUSTRY: There are no restrictions as per RBI/Banks policy guidelines for such type of advance. Our Banks policy also states to consider proposed loan on usual terms and conditions and no restriction is imposed. ANY CONCESSION / RELIEF BY WAY OF MARGIN/COMMISSION/INTEREST: Nil RECOMMENDATIONS:In view of forgoing and based on the recommendation of the Branch, we may place the matter before RLCC RH for approval Nature of Facility Amount of Loan Purpose Classification Term Loan - Fresh Housing Loan under staff scheme Rs. 18.81 Lacs (Rupees Eighteen Lacs and Eighty One Thousand Only) under staff housing policy For purchase of residential flat (at a purchase cost of Rs 18.50 Lacs ) Housing Loan - Non - Priority Sector Equitable mortgage of a residential 2 bedroom flat of area 1041 square ft., nd whose address is Flat no. 201, 2 Floor, Tower I, Officers City, Raj Nagar Extension NH - 58, Ghaziabad from M.R. Proview, Proview Infrastructure. Purchase price of the proposed residential flat is Rs. 20.90 Lacs (including incidental charges), to be purchased in name of Shri Manoj Gulati, as per allotment letter dated 12.07.2012.

Security

(All terms and conditions, documentation formalities as per the extant SHL policy of the bank as applicable to such type of purchase of flat from builders shall be complied with strictly). Rate of Interest 8% p.a. or banks base rate (simple) , whichever is lower Minimum: - 10.00 %. Available: - 10.00 %. (An amount of Rs. 1.80 Lacs is already paid out of own Margin sources may be treated as margin contribution. The borrower shall contribute proportionate margin before release of the loan.) st To be repaid in 299 Months including moratorium period of 24 Months (1 Installment due in August 2014) Repayment Principal shall be repaid in 174 months of installment Rs. 10,810.30 Schedule Interest shall be serviced in not more than 101 months after liquidation of the principal. SPECIFIC TERMS AND CONDITIONS
1.

2. 3. 4.

The loanee will be required to give a letter of authority to the Bank that in the event the loan remaining unadjusted the Bank will be entitled to appropriate the security deposit of the employee, gratuity & other dues towards adjustment of loan. Any nomination already made in respect of the security deposit, gratuity & the other dues shall be cancelled & replaced by one in favor of the bank. Prior to release of credit facilities branch shall ensure that all the documentation formalities are completed. BCC shall be submitted within 15 days of disbursement of the credit facilities. Branch shall ensure that sale deed is executed in favor of Shri Manoj Gulati and valid equitable charge in favor of our bank is created over the proposed residential property. Prior to release of facility a letters of declaration from the borrower that the said property is not subject to any charge/lien to any bank/ financial institution / authority and the society and (i) borrower has not raised any loan against the said flat, (ii) the said plot/flat is not located in an
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Shri. Manoj Gulati B/O Razapur

unauthorized colony (iii) that the said plot /flat is for residential use and shall not be used for commercial purpose. 5. The borrower shall during the entire currency of the loan, maintain the house in good condition at his/her own cost and keep the same free from all encumbrances, pay all taxes and other statutory dues and that he/she will permit any representative of the bank to inspect the property from time to time at the banks option/discretion with advance intimation to the borrower. 6. In case of any cost overrun and /or any additional charges, the borrower shall bring the funds from its own sources. 7. The branch shall completely satisfy itself regarding the source/ proof of margin money before disbursement. 8. All other conditions as circulated by Head Office vide its circular dated Mktg. & Retail: 15:201112:234 dated 06.07.2011 and further amendments thereon, pertaining to above scheme / loan shall strictly be complied with. 9. All other undertaking as per Annexure A shall be obtained and other conditions as per Annexure B shall be duly complied with. 10. The Central Registry System communicated vides HO. Circular No. HO/RMD/ 25 /2011-12 dated 17.06. 2011 shall be meticulously complied with by BM. 11. An undertaking shall be obtained from the staff member for deducting the monthly installment of HL from the pension payable to him. 12. Branch shall ensure that : a) TPA amongst borrowers, promoters/builder and the bank shall be executed as per the norms. b) Letter from promoters/builder shall be obtained noting banks lien in their record. c) Seller buyers agreement/agreement to sell shall be obtained along with the original receipts of payments & original allotment letter. d) NOC for the proposed flat/unit in said apartment shall be provided by the builder before disbursement of loan. Immediately after taking possession and execution of the title deed of the flat, valid & enforceable EQM of the flat having value as per the payment schedule/demand letter/payment letter. GENERAL TERMS & CONDITIONS FOR HOUSING LOANS SANCTIONS
1. 2. 3.

4.

5.

Cost of mortgage, legal costs, cost of other documents shall be borne by the borrower/s. Disbursement of the loan shall be effected only after all documentation formalities are completed and all the terms and conditions of the sanction are complied. Disbursement of the loan will be effected only by Account Payee Pay Order/Demand Draft directly in favor of the seller/builder/vendor/co-operative Housing Society/Government House Building Agency after recovery of the margin under confirmation of the borrower. That the borrower shall during the entire currency of the loan, maintain the house/flat in good condition at his/her own cost and keep the same free from all encumbrances, pay all taxes and other statutory dues and that he/she will permit any representative of the Bank to inspect the property from time to time at the Banks option/discretion with advance intimation to the borrower. In case of lease hold property, in addition to the original lease deed Lessor consent must be obtained before mortgage of the property. ANNEXURE A

VARIOUS UNDERTAKINGS TO BE OBTAINED FROM THE BORROWER ON LETTER PAD The branch shall obtain suitable undertakings from the borrower with regard to the following: 1. The names of Borrower, or its Directors / Guarantors do not figure in any do not list of defaulters circulated by RBI or any Bank and Financial Institution nor do the names of partners/directors appear in caution list issued by RBI/ECGC/DGFT etc. 2. That all required Statutory and/or Regulatory permissions or guidelines from local or other competent authorities have been obtained (as applicable). 3. An undertaking shall be obtained from the borrower / its director (mortgager) that no dues of tax are outstanding against them.

Shri. Manoj Gulati B/O Razapur

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4.

5. 6.

To issue appropriate undertaking /affidavits/ certificates as the Bank may require from time to time certifying that the funds comprising of entire amount of loan/ facility/sum due/ amount outstanding in the account have been used exclusively for the purpose for which they were obtained and the same have not been diverted / siphoned and no misrepresentation has been caused of any kind or accounts falsified/any fraudulent transaction have been carried out etc. To keep the Bank informed of the happening of any event likely to have a substantial effect on their income. Not to create any further charge, lien or encumbrance over the assets and properties of the company to be charged to the bank in favor of any other bank, financial institution, Company, firm or person. ANNEXURE B OTHER GENERAL TERMS & CONDITIONS OF SANCTION An undertaking shall be obtained from the owners of the properties mortgaged to the Bank that there are no arrears of tax including interest leviable thereon under various provisions of Income Tax Act, against them. All statutory and/or Regulatory permissions or guidelines from local or other competent authorities shall be obtained by the branch/borrower (as applicable). Advance/Facility sanctioned shall be used for the specific purpose for which it is sanctioned and not for any other purpose. End use of the funds/facility shall be ensured by the Branch. In terms of HO Circular No.HO/R&L/14/2001-02/355 dated 09.02.2002, an affidavit and undertaking about the names, age and address of legal heirs of the borrower/obligants/guarantors shall be obtained, which shall be recorded and updated from time to time. In terms of HO Circular No.ADV/17/2004-05 dated 29.05.2004 necessary documents/declaration from the borrower/guarantor pertaining to Credit Information Bureau of India (CIBIL) shall be obtained. The credit facilities sanctioned to the borrower should be availed within a period of six months of the date of sanction failing which the sanction shall lapse. Bank reserves the right to withdraw the sanction at any time in case any new facts etc come to light. It shall be ensured that all the papers obtained from the borrower /( in pre and post sanction phase) are duly signed by the authorized signatory.

1.

2. 3. 4.

5.

6. 7. 8.

( Dharmendra Kumar) Sr. Manager Regional Office Level Credit Committee The proposal is to be placed before RLCC for approval in the meeting to be held on

(A.K Jindal) Chief Manager (Loans) Convenor for RLCC-RH for Credit decisions

Approved

Chief Manager (Loans)

Chief Manager (R&L)

AGM- RM/P&D/ Credit Monitoring/Second Man

DGM - RH

Shri. Manoj Gulati B/O Razapur

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Item No

Memorandum dated 01-08-12 seeking approval of the RLCC-RH in the meeting held on..

Noted the Memorandum submitted by Loans Department and RESOLVED THAT approval be and is hereby accorded for the following facilities in the account of Shri. Manoj Gulati at B/o

Account: Shri. Manoj Gulati

Razapur on the terms and conditions, as mentioned in the memorandum.

Branch: Razapur

Nature of Facility Housing Loan to staff under staff scheme

Amount (Rs. in Lacs) 18.81

Interest & Other Charges 8% p.a. or banks base rate (simple) , whichever is lower

Terms of sanction/Tenor 299 Months (including moratorium period of 24 Months)

(A.K Jindal) Chief Manager (Loans) Convener for RLCC-RH for Credit decisions

Shri. Manoj Gulati B/O Razapur

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