CREDIT POLICY (MSME’s – SECURED BUSINESS LOAN)– (SBL) Product MSME’S (SBL)
  
Age Norms

 Applicant/Co‐ applicant/ Guarantor shall be Resident Indian above 25 years at the time of login.
 Age of Applicant /Co applicant (other than property owner)/ Guarantor should not exceed 60 years at the time of loan maturity.
 Age of Property owner should not 75 years at the time of Maturity, however if property owner age crosses 60 years at the time of loan maturity, then his/her income shall not be considered for eligibility purpose.
 In case age of property owner above 70 years at Loan maturity then all Legal heirs to be taken on loan deal or NOC to be taken from all legal heir.
 Individual, either singly or jointly with other family members can avail the loan however they shall be taken as co‐applicant.
 Female i.e. Wife/Mother etc. shall be mandatory in all the cases.
 In Case of Bank Salaried/Salaried Maximum age of income earner is to be 65 years or retirement age whichever is earlier and If Income earner is Pensioner, then Maximum Age to be considered
is 65 years at the time of loan maturity

Property owner to be Applicant

All property owners to be part of the loan. Minor (age less than 18 years) shall not be taken on loan deal.Guarantor Norms While selecting the guarantor the following to be ensured.
 Credit Manager to do TVR with guarantor to ascertain whether he has given guarantee, Cheques (if any) and also to confirm rela􀆟onship with the
applicant/Co‐ applicant.
 Only One Credit Bureau (Either CIBIL or CRIF) to be generated irrespec􀆟ve of loan amount.
 IF guarantor is Govt. employee, then FI of Such Guarantor is not required. However, any one document shall be required for verifica􀆟on purpose:
 Salary Slip which is not older than 3 Months
 Form 16
 Bank Statement (at least 6 months)
 Appointment Le􀆩er
 CM or above /External agency to do residence visit and take selfie with guarantor.
 BH or above can waive the selfie/photo on case‐tocase basis.
 Guarantor signing the Agreement/Deed, signing photo is must.
 Guarantor should not be living in rented house.
 In case of more than 1 guarantor in a Loan, all the devia􀆟ons shall be taken for the latest added guarantor and not for the previous one.Any Deviation in this to be approved by business Head or above.

CIBIL Score Minimum Cutoff CIBIL Score 600 & NTC Credit Bureau Norms Parameters

 No overdue in last 3 Months
 No 30+ /60+/90+ or higher DPD in last 6 months
 No Write off/Settled/Account Sold/SUB/Loss/DBT/Suit filed/SMA in last 12 months
 More than 10 enquiries of Secured & Unsecured ‐
BL/LAP/HL/PL/GL in recent 3 months not allowed.
 The above norms shall apply to running
HL/AL/CV/PL/LAP/BL/ODCC / MFI Loan or any other EMI based facility
 The above norms shall not apply on KCC/Mudra Loan/Loan against FD/JLG Loan/Gold Loan. Any Deviation in this shall be with Credit Head &
Director Level. Obliga􀆟ons
 All the running loans running in individual and coapplicant
capacity having remaining tenure of more than 3 Months to be considered as obligations. In case the same loan is appearing in more than one of the applicants the same to be
obligated only once.
 In case of “Joint” ownership in credit report then the same to be obligated unless the applicant/coapplicant has proof or BH has remarked on Credit
Report/CAM report that he is only guarantor or he is non‐paying member in the loan/Facility.
 Loans which are appearing in the capacity of guarantor shall not be obligated
 Gold Loan/KCC loans/ JLG Loan‐ Micro loan need to be obligated by credit manager.
 Mudra Loan up to sanctioned limit up to 50K need not be obligated
 Tentative monthly interest levied in CC Limit/ Overdraft facility shall be obligated. The same shall be derived on sanctioned limit multiplied by applicable ROI. In case ROI is not available then
12% ROI may be considered.
 Customer will not qualify for loan if live loans are more than 3 Checking of Bank Statements, SOA And Tracks of Exis􀆟ng Loans
 Six‐month Bank statements before login dates of all
the accounts of applicant and co‐applicants are to be obtained whose income is considered for eligibility purpose
 Credit Manager to scrutinize the bank statements to ascertain banking habits, cheque return, EMI
bouncing. In case the applicant/co‐applicant is not having bank account and the same is recently opened, then the banking from the date of opening of Bank account will be sufficient.
 The obligations should be identified through Credit Bureau Reports, loan statement, bank statements.
 If existing loan is repaid through salary deduction or
through bank statements or if loans are declared on application form or any other document, then these loans will be considered for FOIR if closure statement or less than 3 months’ balance term proof is not given
 More than 5% inward cheques return not consider. Business/ Employment Vintage
 Business‐ Minimum 2 years Business vintage
 18 Months Business Vintage/Operation in Same location Geo Limit Norms
 Business premises & Residence House should be located within 50 Kms radius of Branch.
 Collateral Property should be located within 50 kms radius of Branch.
 Business shall be booked in the sourcing branch.
 Login shall be done from the branch within whose territory, either business or Collateral is situated.
 Business or Collateral situated outside geo limit of 50 Kms as mentioned above, shall not be entertained.
The Geo limit is to be identified through google maps from branch to the customer/property location. KYC Documents KYC document should be seen in original and verified (OSV) by Sourcing team, further all the documents to be self‐attested by
applicant/co applicant/guarantor to which it is related.

Refer Annexure I Below for Valid KYC Documents Loan Caping

Minimum Loan Amount: ‐ 2,00,000/‐
Maximum Loan Amount: ‐ 12,00,000/‐
With Deviation Approval Loan Amount: ‐ >12,00,001/‐ to 15,00,000/‐
More than 12 Lakhs required deviation approval for that up to Credit Head & Director Level
NTC (From 101 to 200) Customer Funding allowed up to 5 Lakhs only.

Tenure

 Minimum 12 Months
 Maximum 60 Months
Income Proof
 Up to 5 lakhs cases will be done based on Assessment basis.
 More than 5 lakhs cases will be done based on Income proof basis.
 More than 12 Lakhs GST certificate is mandatory to access the cases.
(Income Proofs likes 6 Months Banking; 6 Months GST – Returns; 2 YEARS ITR with GAP of 6 Months filing eighter
ONE proof. Sale & Purchase Bills.)
ROI
ROI: ‐ 24% (reducing)
Processing Fees &
Insurance
PF: ‐ 1.5% to 3% on Loan Amount
Insurance: ‐ 3% on Loan Amount
Legal & Technical Fees
Rs.5,100/‐ for Legal & Technical Fees
Documents Handling
Charges
Rs. 4,130/‐ for Handling Charges
Document Charges (Stamp
Paper)
Rs. 6,500/‐ for Document Charges
Ownership Proof
Mandatory of Residence/ Business/ Property Mortgage Both Rented profiles not allowed and if rented either Residence
and Business then mandatory to provide the rent agreement. Personal Discussion (PD)/ Case Visit
 Personal discussion is mandatory for every case as per matrix and the same shall be done post login and clearance of IMD.
 PD should be conducted at Business and Residence Place. Visit of Property to be mortgaged is compulsory. The aforesaid visit is to be
substantiated through photographs/Selfie and the same to be documented in file – Business Premises Video also require in 360 angles likes In Video there
should be covered customer Business premises entry level with sign board if it is there and their left or right side of shop also should be covered from applicant business premises then all stocks and structures must be covered.
 Minimum 2 reference check (Including guarantor) to be documented in File Field Investigation of the property /Business Place
 FI is mandatory for applicant and Co‐ applicant whose income is considered.
 Photograph of the property, business place and place of employment where customer is working and his selfie with those locations.
 In case report status is Negative/Credit Refer then
respective Credit Manager to take approval with proper justification from BH or above authority.
 RO/BM FI is must as per internal requirements.
 If BH or above has done the PD and FI status is Credit refer/Negative then they can approve at their own basis their PD Comfort. Legal Report/Ve􀆫ng of report of the Property documents
 Legal and ve􀆫ng of 􀆟tle deeds/Property documents is mandatory from empaneled lawyer.
 TSR shall be mandatory in case of registered documents.
 All cases to be booked in the RM/Equitable Mortgage.
 Where Gift Deed execution is less than 1 year from the
date of login, then certified copies to be obtained
 In case of gi􀅌 deed/relinquish deed/Co‐ownership
deed/Power of a􀆩orney is executed within last 6 months from the date of login of the file, then both
the party/ies (giver and receiver) shall be taken on deal. If Gi􀅌 deed /Transfer deed is having clause rela􀆟ng to The Maintenance and Welfare of Parents and Senior Citizens Act, then both transferee & transferor to be taken as co applicants in loan.  Legal & Technical Manual to be prepared by local
credit & business team in consulta􀆟on with empaneled Legal & technical Vendors & to be approved by Business Head. Valua􀆟on Of the Property
 Valuation of property from empaneled valuer is mandatory.
 Valuer to capture photograph of the property and his selfie with the property and mention the latitude and longitude of the property with google map and electric meter photo.
 Any Correction on the Valuation which is not material and done due to error can be validated by BH or above authority. (Eg: Application number mismatch, Property Owner Differ mentioned, Lesser Area Considered etc.)
In Top Up cases fresh valua􀆟on shall be mandatory. Any devia􀆟on to be approved by L6 (Director Level) and above.
Guideline on Development % (Habita􀆟on of Property) LTV % FOIR % Minimum 30 % Development is required for accepting Near Collateral property. Any Devia􀆟on in this can be approved by L5(Zonal Sales
Head and Credit Head) level. Up to 50% On Residencial Occupied Property Up to 50% on Commercial Occupied property For at L5 (Credit Head) & L6 (CEO Level) Up to 60% FOIR For Devia􀆟on at L5 (Credit Head) & L6 (CEO Level) Negative
Profile At present the following are the negative profiles and the cases pertaining to this profile to be approved by L6 case to case basis.
 An􀆟‐Social organiza􀆟ons and elements.
 Poli􀆟cians and persons with poli􀆟cal influence/Poli􀆟cally exposed persons (PEP)
 Chit fund companies/Stock Broking/Investment companies/Lo􀆩ery companies and related employees.
 Bar Owners and workers.
 Time share companies and related persons
 Produc􀆟on or trade in any product or ac􀆟vity deemed illegal under host country laws or
regula􀆟ons or interna􀆟onal conven􀆟ons and agreements, or subject to interna􀆟onal bans, such as pharmaceu􀆟cals, pes􀆟cides/herbicides, ozone deple􀆟ng substances, PCB, wildlife or products regulated under CITES.
 Produc􀆟on of, or trade in alcoholic beverages.
 Gambling, casinos and equivalent enterprises.
 Produc􀆟on or trade in unbounded asbestos fibers. This does not apply to purchase and use of bonded asbestos cement shee􀆟ng where the asbestos content is less than 20%.
 Customer working in Collec􀆟on Department & Insurance
 Customer is engaged in the business of specula􀆟on/ income is not recurring on daily basis.
 Customer engaged in business of Produc􀆟on of, or trade in, arms (i.e. weapons, muni􀆟ons or nuclear products, primarily designated for military purposes, including paramilitary material)
 Customer engaged in business of Produc􀆟on or trade in wood or other forestry products other than from sustainably managed forests;
 Customer engaged in business of Produc􀆟on or ac􀆟vi􀆟es involving harmful or exploita􀆟ve forms of forced labor and harmful child Labour
 Customer engaged in business of Pros􀆟tu􀆟on and/ Pornography.
 Produc􀆟on of or trade in, radioac􀆟ve material and hazardous chemicals
 Willful defaulter as men􀆟oned in list circulated by RBI.
 Advocate, Police, Trust & NGO‐ Non‐Profit Organiza􀆟on.
 Person with criminal record, insolvent, adjudged insolvent, luna􀆟c
 Person involved in MLM
 Divorcee where divorce proceeding is not finalized.
 HUF property, Benami transac􀆟on
 Man power supplier – Consultant
 Travell & Ticket booking services consultant
 Money Transfer & Hawala trader
 Sea Food trader – Import & Export
 Chicken & Meat Shop
 Entertainment and film maker
 Gutkha/Tobacco/Cigare􀆩e trader
 Hair Business
 Saloon and Spa Massage parlor

Annexures

I: KYC Documents
KYC Documents
En􀆟ty Parameters INDIVIDUALS KYC Documents‐
Photo ID/ Address/
Age Proof
Any two of following Officially valid document (OVD).
• Driving license
• Voter’s ID card
• Aadhar Card**
• Passport
• Employment ID card if issued by Central Govt//State Govt
• NREGA Card
It has been decided to accept any one of the following as an identity proof for Individuals/Applicants)
• Bank Pass Book with photograph & bank stamp on photo.
• Employee ID card issued by Govt, PSU, Defence Establishments
• Photo on Ration Card duly stamped. Valid photo credit or debit card with signature printed.
 Job work
 Contractual Works
 Poultry Firm & Animal profiles.
 Tailoring and Embroidery Profiles
All the above profiles shall be identified at the time of PD and reference check.
Note: PAN Card/Form 60 is mandatory for applicant, Co‐applicant and Guarantor.
1. PAN Card is mandatory for applicant/co‐applicants whose income is considered for loan eligibility.
2. There will be no relaxation in KYC as mentioned above, KYC may accept if PAN Card + 1 OVD, If PAN card in not available then 2 OVD is required.
3. Single OVD can be accepted for Non‐Income Earners.
4. Where the OVD furnished by the customer does not have updated address, the following documents shall additionally to be taken as a proof of updated address: ‐
a) Utility bill which is not more than two months old of any service provider (electricity, telephone, post‐paid mobile phone, piped gas, water bill);
b) Property or Municipal tax receipt;
c) Pension or family pension payment orders (PPOs) issued to retired employees by Government Departments or Public Sector Undertakings, if they contain the address;
Letter of allotment of accommodation from employer issued by State Government or Central Government Departments, statutory or regulatory bodies, public sector undertakings, scheduled
commercial banks, financial institutions and listed companies and leave and license agreements with such employers allotting official accommodation.
Business Proof: ‐ MSME’S Certificate Mandatory in All Cases.