12 Quick Success Series Asset Products Sme(1)

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Quick Success Series

Promotional Exams for the Year 2012-13 are round the corner. We at SBLC Deoghar, have made a sincere & honest effort to present all information spread over various guides, books & circulars on a particular topic through our “Quick Success Series” for your benefit. We have taken all care to provide correct, complete though concise information related to the topic. In case any discrepancy is observed please feel free to advise us through Email or Mobile as given below. We are indebted to numerous callers from the length and breadth of the country who have compelled us to revise and update the series so that it can help them to achieve their career goals. We also thank many readers who succeeded in their exams and expressed their gratitude through emails and calls encouraging us to continue our efforts. I thank Sri Shailesh Kumar (ex faculty), who conceived the idea of QSS. Also my sincere thanks to faculty members Sri A. K. Mishra, Sri S.P.Jha, Sri Rajeev Shankar, Sri Champak Das and Sri Rakesh Roshan, who have worked hard to update and revise the current series. Wishing you all grand success

S K Rana Assistant General Manager, State Bank Learning Centre, Deoghar- 814112 Phone- 06432-232895 Fax - 06432-231810 E-mail: [email protected]

SME ASSET PRODUCTS

Updated By Shiv Prakash Jha (Original Compilation:

Shailesh Kumar)

Chief Manager, SBLC Deoghar

Mobile- 9470520164 Email-

[email protected]

Updated upto 10th MAY 2012

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MSMED ACT 2006 Two categories of Enterprise- Industrial & Service. Industrial- Engaged in manufacture or production, processing or preservation of goods Service- Engaged in providing or rendering of services such as small road and water transport operators, small business, professional & self employed persons, etc. Industrial Enterprises are further classified as Micro, Small and Medium on the basis of original investment in plant & machinery (excluding cost of land & building and other items specified by Ministry of Small Scale industries) Service Enterprises are also further classified as Micro, Small & Medium on the basis of investment in equipments (excluding cost of land & building and furniture-fittings and other items not directly related to the service rendered) Industrial Enterprises: i) Micro- Investment in P& M upto Rs 25 Lakhs ii) Small- Investment in P&M more than Rs 25 Lakhs & Upto Rs 5 Crores iii) Medium- Investment in P&M More than Rs 5 Crores & Upto Rs 10 Crores Service Enterprises: i) Micro- Investment in equipment upto Rs 10 Lakhs ii) Small- Investment in equipment more than Rs 10 Lakhs & upto Rs 2 Crores iii) Medium- Investment in equipment more than Rs 2 Crores & upto Rs 5 Crores Delayed Payment to Micro & Small Enterprises: When they supply goods or render services to a buyer, the buyer to make payment before the date agreed in writing. Agreement should not exceed more than 45 days. If buyer fails to make payment, compound Interest with monthly rest @ three times Bank Rate will be payable from the appointed day to seller. Discretion to file a ‘Memorandum of Small & Medium Enterprises’ to Micro & Small

Enterprises (Both industrial & Service) & Medium Enterprise (Service) Mandatory to file a ‘Memorandum of MSME” for Medium Enterprises (Industrial). SBI’s DEFINITION Basis- Annual Turnover and not Investment. Small Enterprises (SE)- Business Enterprises with turnover upto Rs 5 Crores. Medium Enterprises (ME) - Business Enterprises with turnover above 5 Crores but less than 50 Crores. Thus, SME means Business Enterprise with annual turnover of less than Rs 50 Crores, and would include SSIs, SBFs and Corporate within this turnover. SBF - DEFINITION All loans granted to Micro & Small service enterprises will be classified under SBF forming part of Priority Sector. Micro & Small Service Enterprises include: i) Loans granted for Retail Trade [i.e. advances granted to retail traders dealing in essential commodities (fair price shop), consumer co-operative stores; and advances granted to private retail traders with credit (limits not exceeding Rs. 20 lakh), ii) Small road & water transport operators (SRWTO), Small business, Professional & Self employed persons and all services enterprises with investment in equipment up to Rs.2 crore. For SRWTO, the investment in equipment means investment in vehicle concerned.

SME DOCUMENTATION Applicable to all accounts in SME segment. National Rollout wef 1st Aug 2005. Product Neutral/Facility Neutral. Pledge dispensed with Initial Documents: i) SME-1 (Letter of Arrangement) -Adheres to KYC Norms -Divided into two Parts -Annexure A & Annexure B

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-Annexure A contains Terms & conditions of sanction of Particular facilities/limits to a borrower -Annexure B contains the Bank’s standard Terms and Conditions of Sanction -No need of fresh documents in case of change in terms & conditions without any change in Aggregate Limit. Only a fresh letter of arrangement to be exchanged after suitable modification -Product Neural -Provides for affixing self-attested photographs of the Borrower(s), Guarantor(s) and Third Party Mortgagor(s) to establish their identity besides serving proof of their signatures. -Attracts Stamp Duty -To be executed by all, Borrower(s), Guarantor(s) and Third Part Mortgagor(s) -Fresh SME-1 to be obtained in case of enhancement ii) SME-2 (Agreement of Loan cum Hypothecation) - To be obtained for Aggregate Limit including all type of Fund Based & Non Fund Based Credit Facilities -It is both a ‘Principal’ and ‘Charging’ document. It covers all types of facilities besides creating a hypothecation charge on a wide variety of movable assets. -Provides for incorporating the name & other details of Borrower(s) in a tabular form. Contains Two Schedules. Schedule A- Provides for furnishing particulars of all the facilities/Limits sanctioned alongwith rate of interest and also the interest rate and repayment schedule in respect of Term Loan sanctioned. Schedule B- Provides for furnishing Description of all movable assets hypothecated to the Bank. No need to fill in any other blanks in the document. (Rationale: To eliminate errors in documentation) -Provides for communication to Borrower(s) in any medium, such as letter, courier, facsimile, e-mail, etc. -To be stamped with total stamp duty payable for an Agreement + Hypothecation +

Indemnity + General Power of Attorney as per State Stamp Act. -Not to be attested -In case of second charge or third charge, the expression first charge appearing in Clause 7 to be suitably modified. iii) SME- 2A (Letter Furnishing the Particulars of Assets Acquired after the Execution of SME-2) -To be obtained where certain assets are acquired after execution of SME-2 -No stamp duty is payable -To be executed by all the Borrower(s) -Form an integral part of SME-2 -Date to be mentioned in SME-2 A may be similar to the date mentioned in SME- 2 or it could be a subsequent date depending upon the date of acquisition of assets by the Borrower(s) iii)SME-3 (Guarantee Agreement) -Only security document to be executed by Guarantor(s) in addition to Letter of Arrangement -To be executed by all the Guarantor(s) -To be stamped as an Agreement + Power of Attorney -Provides for Joint & Several Liability of the Guarantor -Covers all types of Guarantees like Personal Guarantees, Third Party Guarantees and Corporate Guarantees -No Supplemental Guarantee agreement -In case of enhancement, Fresh Guarantee Agreement to be obtained for enhanced aggregate limit. Supplemental Document: SME 4 (Supplemental Agreement of Loan cum Hypothecation) - Supplemental to SME-2 -To be obtained in case of enhancement beyond the Aggregate limit -To be stamped as an Agreement + Hypothecation - Not to be witnessed - Contains two schedules: Schedule A & Schedule B

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-Provision to record details of original Aggregate Limit, enhancement or additional limits sanctioned and the enhanced aggregate limits in Schedule A. -Description of additional assets hypothecated to the Bank is required to be recorded in schedule B. Documents / Recital for creation of EM: i)SME-5 Memorandum for recording creation of Mortgage by deposit of title deeds -Provides for creation of EM by all types of mortgagors, viz. Borrower(s) or Guarantor(s) or Third Party Mortgagor (s) -To be stamped as stamp duty applicable for mortgage in respective states -Mortgage debt may be less than or equal to the Aggregate Limit -Mortgage Debt is to be recorded in the Memorandum -To be signed on behalf of the Bank by two officers ii)SME-6 Letter of confirmation for creation of mortgage by deposit of title deeds -An independent evidence for creation of mortgage by Deposit of Title Deeds and intention to create EM in favour of the Bank. -To be signed by all the Mortgagor(s) -To be obtained from all types of Mortgagor(s) Documents / Recital for Extension of EM: i)SME-7 Memorandum for recording extension of mortgage by deposit of Title Deeds ii)SME-8 Letter of confirmation of extension of mortgage by deposit of title deeds

SME-5A & SME-7A to be used where registration of EM is mandatory, presently in Gujrat state only

Documents for creation / Extension of Regd. Mortgage i)SME-9 Deed of Mortgage -To be used for creation of Registered Mortgage -To be witnessed by two persons

-Should be compulsorily registered with Registrar of Assurances within 4 months from the date of creation of Mortgage ii)SME-10 Deed of Further Charge - To be used for extension of a mortgage created initially by way of Registered Mortgage -Stamp duty is to be adjudicated -To be registered with the Registrar of Assurances within 4 months from the date of execution -To be witnessed by two persons Complementary Documents: i)SME-11 Revival Letter -Should be obtained without fail in respect of all documents before the expiry of limitation period -Should be signed by the Borrower(s) / Mortgagor(s) and endorsed by the Guarantor(s) ii) SME-12 Link Letter -Facilitates migration from earlier segmental documents (SSI & C&I) to SME documents -To be executed by all the Borrower(s) and Guarantor(s) -In case of Corporate Borrowers, the Link letter may have to be filed with the RoC alongwith the SME documents to evidence the continuity or modification of the existing charges Title Investigation Report: -SME-13 has since been withdrawn. -It has been replaced by a new format which is to be used for obtaining the Advocate’s Report (Title Investigation Report) for all the segments w.e.f. 1st July 2006 -It includes: i)Letter to advocate for search and verification of title deeds/documents. ii)Annexure A - to be filled by the Branch/Unit. iii)Annexure B – To be completed by the panel advocate iv)Annexure C- Checklist for the guidance of the advocates verifying the title to the propert(ies) offered as security. iv)Annexure D- Certificate of Title

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v)Annexure D1 – to be used in case of Take Over. Annexure D to be obtained before creation of EM

SME ASSET PRODUCTS

AUTO CLEAN Purpose- To meet cost of LPG/CNG kit for conversion of petrol operated auto rickshaws to CNG/LPG operated vehicles Maximum Loan- Rs 25000/- Margin- Nil Repayment- 24 Months / 36 months If already financed by us Special Conditions for Sanction i)Account should be standard if Auto already financed by us ii)Work order from RTO required to ensure availability of refilling facilities at the centre iii)Takeover permitted iv)Borrowers of other Banks not Eligible, however, takeover permitted v)Hypothecation of Vehicle or Group Guarantee SWAROJGAR CREDIT CARD To provide adequately & timely credit to small artisans, handloom weavers, service sector, fisherman, self employed persons, rickshaw owners, other micro-entrepreneurs, etc A composite Loan including term loan / revolving cash credit Loan Amt – Rs 25000/- per borrower. Upto Rs 30000/- in deserving cases Margin: NIL TL component to meet investment in fixed assets TL to be repaid within 5 years in suitable installments Revolving Cash Credit limit to be fixed at 20% of projected annual turnover A component for consumption credit not exceeding 20% of limit could be built in keeping in view the value of the family labour in the productive activity A laminated card & passbook is issued

It is required to produce both – card & passbook at the time of withdrawal of cash from the account SHGs can also be issued cards in their name and they will be liable jointly and severally for repayment SCC normally valid for 5 years subject to satisfactory operation of account and renewal on a yearly basis through simple review process based on the amount credited to the CC Account and repayment performance in the TL account TL component could be enhanced within the overall limit in case of need The Revolving cash credit to the extent of working capital repaid may be renewed within the overall ceiling of Rs.25,000/- It should be normally repaid within 12 months from the date of drawal. Where necessary, the working capital component could be enhanced within the overall ceiling to provide for escalation in the cost of inputs, etc subject to satisfactory repayment performance. No drawal will be permitted if revolving cash credit remains outstanding for more than 12 months Opening of SB Account not be a precondition for issue of SCC. However, in case SCC holder desires on his/her own to open SB A/c. he/she may be allowed to do so. Rate of interest as applicable to SB a/c should be paid on credit balance in cash credit accounts Covered under Group Insurance Scheme- Premium shared between Bank and Borrower equally CYBER PLUS Purpose-To set up Internet/ Cyber cafes especially at rural and semi- urban centres with potential for such a facility Eligibility: Educational qualifications –minimum SSC or 10th STD passed Age –between 18 and 45 years of age Should possess basic computer knowledge

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Presently introduced in Ahmedabad, Bangalore, Chennai, Hyderabad & Mumbai Circles Loan Amount: Max Rs 50000/- Margin: Rs 9000 (to be met from own source or from KVIC Margin Money Scheme) Repayment: 36 to 40 months N-Logue, a nonprofit organisation comprising of specialists from IIT Chennai has designed the "CHIRAAG" kiosk to be located at rural centres to provide e-governance and has entered into agreements with various agencies to enable these kiosks to provide communication, education, information about agriculture, health and other services ARTISAN CREDIT CARD To provide hassle free credit to artisans engaged in handicrafts Preference to artisans registered with Development Commissioner (handicrafts) All existing artisans’ borrowers enjoying credit facilities upto Rs 2 lakh are eligible to be covered under the scheme New units are also eligible Beneficiaries of other Govt sponsored loan schemes not eligible A photo card and passbook is issued Assessment of working capital as per Nayak Committee (20% of anticipated turnover) Maximum Loan – 2 lakhs Margin upto Rs 25000/- Nil Above Rs 25000/- and Upto Rs 2 Lakhs – 20% Minimum score – 60% as per scoring model (36 out of 60) Validity for 3 years subject to annual review based on assessment of performance during inspection by field staff & operation No fee to be charged for review/renewal of the limit Beneficiaries registered with Development Commissioner (Handicrafts) eligible for coverage under group insurance scheme Premium to be shared between Govt & Beneficiaries in the ratio 60:40 or as mutually agreed between office of DC (Handicrafts) and insurance company

SME CREDIT CARD Units in existence for 2 years with excellent performance & credentials whether banking/not banking with us/other bank Maximum Loan- Rs 10 Lakh Margin upto Rs 25000/- NIL Above Rs 25000/- & upto Rs 10 lakh- 20% Minimum score 60% as per scoring model (36 out of 60) Assessment i) For small business, retail traders, etc. 20 % of the annual turnover declared for tax purposes or last 12 months turnover in the operative account, whichever is higher. In respect of parties with good track record, where sales tax returns are not available, the credit limits may be decided taking into consideration the actual turnover in the account during the last two years. ii) For professionals and self – employed persons, 100 % of their gross annual income as per IT return iii) For SSIs - as per Nayak Committee Valid for 3 years subject to satisfactory annual review Credit summations in the account should not be less than 50% of the projected sales turnover If so, the outstanding as on due date of review to be made repayable in suitable monthly installments TL to be repaid in suitable installments within a maximum period of 5 years A photo card is issued Insurance of assets may be waived upto Rs 25000/- Submission of Audited Balance Sheet waived Stock statement to be obtained once in a year on 28th Feb Half yearly Inspection to ensure end use of funds SME SMART SCORE Age of chief promoter / Chief executive should be between 18 and 65 years Promoters should not be defaulters to the banks financial institutions.

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All the clearances including but not limited to environmental clearance for the project should have been obtained & satisfactory evidence of their being made available Promoters should be to the area of operation of the branch and should have satisfactory references Loan Amount: i) Manufacturing Units: Rs 5 lacs to upto Rs 50 lacs (20% of Projected sales for WC loan and 67% of project cost for TL) ii) Trade & Services: Rs 5 lacs to Rs 25 lacs (15% of Projected Sales for WC and 67% of Project cost for TL) Margin: 25% for WC & 33% for TL Working capital loans to be sanctioned for two years, specifying the limit requirement for each year. Documents are to be obtained for higher of the two limits. The limits assessed and sanctioned for the second year should be released after a satisfactory review of achievement of the projected level of operations for the first year. Minimum score 60% as per scoring model i.e. 60 out of 100 with a minimum of 50% under each sub head like Person details (max:30 marks), Business details (max:50 marks) & collateral details (max: 20 marks) Minimum Marks under collateral details are 10 except in cases where Collateral should not be asked as per Bank’s norms, where the minimum mark will be nil Units not able to score 60% or more marks in the scoring model can still be considered by the Branches under the normal credit dispensation based on specific considerations Repayment of TL not more than 5 years excluding moratorium not exceeding 6 months Working Capital loans to be renewed if credit score is 35 and above out of 60 under business score FLEXI LOAN FOR TRADE & SERVICE SECTOR Traders in Goods / Commodities & Services of eligible activities

For any general purpose like: Holding of stocks/book-debts Acquisition of land and building Construction / renovation of office / showroom Purchase of vehicles, equipment and machinery Shoring up of net working capital Eligibility Borrowers with CRA ratings of SB 4(Old)/SB 9 (New) and above Should have earned cash profits in each of the immediately preceding 3 years and net profit in the past year Minimum gross DSCR of 1.50 TOL/TNW not to ordinarily exceed 4. Total long term liabilities to equity not to exceed 2:1 Current ratio not to be less than 1. Loan Amount: Min Rs.5 lacs & Max Rs.100 lacs. In the case of extending this term loan for working capital purposes, a limit of upto 15% of the assessed WC limits can be considered for meeting contingencies, subject to availability of drawing power CRA –Trade model to be used for limits above Rs.25 lacs Repayment: 3 to 5 years. Sanctioning authority may extend the repayment period up to 8 years in deserving cases. Collateral: 1. Tangible security by way of immovable property, TDRs, NSCs, etc for a minimum of 35% of the loan for those with a satisfactory track record of 3 years For others, minimum collateral should be 50% 2. Personal guarantees of promoters /partners / proprietor SME COLLATERAL FREE LOAN Eligibility: New and existing Micro and Small Enterprises engaged in Manufacturing and service sector except Retail/ Wholesale Traders, Educational Institutions, Training Institutions and SHGs Loan Amount- Maximum Rs 1 Crore

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Type of Facility- Cash Credit, Letter of Credit, Bank Guarantee, Term Loan. Special Sanction Conditions i) Chief promoter /chief executive should be 21 to 65 years of age in case of non corporate borrower ii)Mandatory Guarantee Cover under CGTMSE iii)For loan below Rs 25 lakh, at least 50% marks to be scored under each sub-head of Business &Personal details and 60% in overall score except collateral details as per the scoring model of SME Smart Score. Score under collateral to be normalised with Business & Personal details parameter score. iv)For Loans between Rs.25 lacs to Rs. 1.00 Crore Units should have CRA Rating of SB-10 and above as per the applicable revised CRA rating norms Assessment of Loan i)Manufacturing Enterprises Working Capital (WC): As per Nayak Committee norms (20% of the projected turnover), Term Loan (TL): 75% of project cost ii)Service Enterprises Working Capital (WC): 15% of the projected turnover /Revenue. Term Loan (TL): 75% of project cost Repayment Working Capital(WC) : On Demand Term Loan: Maximum Seven Years including moratorium period not exceeding 6 months -1 year. Submission of Stock Statement Up to Rs.25.00 lacs, once in a quarter Above Rs. 25.00 lacs once in a month Loan Processing and Service Charges 50 % of the normal rates (Applicable on first time sanction and annual renewal charges) Inspection of the Unit Exposure upto Rs.25.00 lacs : Once in a quarter. Exposure above Rs. 25.00 lacs : Monthly Review / Renewal: Working capital renewal every two years. However, performance of the unit and conduct of account will be reviewed annually for continuation of limits

Primary Security: Assets created out of the credit facility so extended. Other Security: Unencumbered assets which are directly associated with the business for which the credit facility is extended. i.e. land & building of Factory /office/godown which pertains to unit and associated with the business. No third party guarantee other than personal guarantee of the borrower Promoters, Partners etc. In case the loan is sanctioned to Private/Public Limited company, the guarantee of directors will be treated as third party guarantee CREDIT GUARANTEE FUND TRUST for Micro & Small Enterprises (CGTMSE) Set up by SIDBI & Govt of India All fund & Non-fund-based credit facilities provided to a single borrower in the Micro & Small Enterprises sector upto Rs 100 lacs (wef 08.12.2008) All proposals > Rs 50 lacs should be rated internally No collateral Security and/or Third Party Guarantee should be taken Personal guarantee of the borrower Promoters, Partners etc may be obtained In case of loan sanctioned to Private/Public Limited company, the guarantee of directors will be treated as third party guarantee Account should not have become bad Interest rate should not be more than 3% over PLR/SBAR Business or activity of the Borrower should not have ceased Loan to retail/wholesale trade, educational institutions and training institutions & SHG etc are not eligible for coverage Credit facilities being extended by more than one bank and/or financial institution jointly and/or separately to eligible borrower upto a maximum upto Rs.100 lakh per borrower subject to ceiling amount of individual MLI may be covered Extent of Guarantee Cover:

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Loan Amount Upto Rs 50 Lacs: i) 75% of amount in default max Rs

37.50 lacs Exception to i) a) Micro enterprises for loan upto Rs 5 lacs : 85% of amount in default max Rs 4.25 lacs Care: For Micro enterprises with loan facility above Rs 5 lacs & upto Rs 50 lacs, guarantee cover as per i) b) Women entrepreneurs/Units in NE Region: 80% of amount in default max Rs 40 lacs Loan Amount Above Rs 50 lacs & upto Rs 100 lacs: a)Women/NE Region: Rs 40 lacs + 50% of amount in default above Rs 50 lacs overall ceiling Rs 65 lacs b) Others: Rs 37.50 lacs + 50% of amount in default above Rs 50 lacs overall ceiling Rs 62.5 lacs ‘Amount in default’ means the principal and interest amount outstanding in the account(s) of the borrower in respect of term loan and amount of outstanding working capital facilities (including interest) as on the date of the account becoming NPA or the date of lodgment of claim application whichever is lower subject to a maximum of amount Guaranteed. Guarantee cover would be for agreed tenure of the term loan/ composite credit. In case of working capital, the tenure is 5 years or block of 5 years Application for Guarantee cover for credit proposals sanctioned in the quarter April-June, July-September, October-December, and January-March should be lodged before expiry of the following quarter viz. July-September, October-December, January-March and April-June respectively Applications are lodged online through the website of CGTMSE On approval of application by CGTMSE, a demand advice (CGDAN) is generated Guarantee fee (one time) as per CGDAN is remitted by Demand Draft Payable at Mumbai

GF should be paid upfront within 30 days from the date of first disbursement or 30 days from the date of demand advice, whichever is later G Fee: Upto Rs 5 lacs – 1%, > Rs 5 lacs – 1.5% (0.75% for NE region & Sikkim for loan upto Rs 50 lacs) GF for loans upto Rs 2 lacs will be absorbed by Bank Annual service fee shall be paid by debit to borrower’s account within 60 days i.e. on or before May 31, of every year Annual Fee – Upto Rs 5 lacs: 0.5%, Above Rs 5 lacs: 0.75% ASF in excess of 0.25% will be absorbed by bank for units in NE Region & Sikkim Lodgment of Claim Guarantee is in force as on date of claim Lock in period of 18 months from the date of last disbursement OR the date of issuance of guarantee cover, whichever is later, is completed Borrower’s account is classified as NPA as per norms (Trust to be informed when the account is classified as NPA) Account has been recalled & Legal Proceeding has been initiated. In case of action under SARFAESI, possession of the surety has been taken Claim Settlement Trust shall pay 75 per cent of the guaranteed portion or amount in default whichever is less within 30 days of lodgment of claim if otherwise found in order Balance 25 per cent of the defaults or guaranteed portion, as the case may be, will be paid on conclusion of recovery proceedings by the lender Appropriation of Residual Recovery Amount realized, if any, from the sale of assets of the Unit or otherwise must first be credited in full to the Trust before claiming the remaining 25 per cent of the default / guaranteed portion

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DOCTOR PLUS Eligibility: Medical Registered Practitioners of any discipline. In case of partnerships, corporate, trusts with powers to borrow, Promoters should be registered practitioners and should possess minimum qualification to practice in a discipline such as MBBS/ BDS/ BAMS/ GAMS/ BHMS PURPOSE: For purchase of equipment, For setting up clinic, nursing home, path. Lab, drug store, ambulances, computers, vehicle, etc. For dentists, the loan also covers dental implants besides equipments; For orthopaedists, the loan also covers various replacements/ implants for hip/ knee/ shoulder/spine etc. Expansion/ renovation of existing premises Loan Amount : a. In Metro/ urban for

Corporates and partnerships only: Maximum of Rs.10 crores of which a sub ceiling forworking capital limits at • 10% of total loan amount for up to Rs.1 crore • 5% of total loan amount for above Rs.1 crore b. (1) In Metro/ urban for individuals (2) In Other centres for Corporates/ partnerships/individuals: For b. (1) and (2) maximum of Rs.5 crores of which asub ceiling for working capital limits at • 10% of total loan amount for up to Rs.1 crore • 5% of total loan amount for above Rs.1 crore c. For Non Allopathic doctors (Unani, Ayurvedic,Homeopathic): Maximum of Rs.10 lacs of which a subceiling for working capital limits at 10% of total loan amount. Margin Upto Rs. 10 lacs : 15% Above Rs.10 lacs Upto 5 Crores: 20% ; Rs. 5 Crores – Rs. 10 Crores : 25% Minimum DSCR 1.50 Minimum score of 40 as per Scoring Model for loan upto 25 lakhs. CRA Model applicable for loan above 25 lakhs . should not go beyond SB 8.

Collateral : No tangible collateral security for loan amounts up to Rs.25 lacs.They are to be covered under CGTMSE. CGTMSE fees to be borne by the borrower. For loans above Rs.25 lacs and upto Rs.1 Crore: tangible security for at least 25% of the loan amount. Alternatively,=eligible accounts may be covered under CGTMSE scheme. For loans sanctioned to Micro & Small Enterprises above Rs.1 Crore: Tangible collateral security of at least 25% and Personal guarantee of promoters.

Upfront Fee – concession of 50% on card rates.

Disbursal – Over a period of 24 months. Repayment: Maximum period up to 5 years

(including moratorium period): For buying equipments and expansion/ renovation/modernization of existing premises- Maximum period up to 7 years (including moratorium period): For setting up clinic, nursing home, pathology labs, drug store and other infrastructure Max. moratorium – 12 months Disbursements can be made in installments over a period of 24 months Rate of Interest Based on credit scoring model for loans upto Rs.25 lacs Based on CRA rating for loans beyond Rs.25 lacs SBI-SIEMENS MEDICAL EQUIPMENT PLUS Prospective buyers of Medical equipment will be identified by Siemens from doctors in private practice, nursing homes, hospitals, diagnostic centres. It is expected that the applications will be processed within 15 days of receipt Loan Amount: all loans upto Rs 25 lacs will be covered under Doctor + Scheme. Loans above Rs 25 lacs will be appraised as per norms applicable to C&I advances. Provision for contingencies to the extent of 5% may be considered from case to case basis. Margin: 20% Minimum DSCR : 1.75

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Debt Equity Ratio : 3:1 Repayment: 5 to 8 years including moratorium period not exceeding 1 year. Collateral Security: For Loans upto Rs 10 lacs –NIL Above Rs. 10 lacs: Tangibles At least 50% of the loan amount SBI DENTAL EQUIPMENTS PLUS Prospective buyers of equipments required for dentistry will be identified by M/s Confident Dental Equipments Ltd It is expected that the applications will be processed within 15 days of receipt Promoter should be BDS and registered practitioner. Loan Amount: Max Rs 10 lacs Minimum DSCR: 1.5 Minimum 60% marks to be obtained as per scoring model Repayment: 5-10 years including moratorium period not exceeding 1 year Collateral – NIL A discount of 5% and extended warranty of 18 months is offered by supplier EQUIPMENT FINANCE TIEUP WITH GE HEALTHCARE (GEH) Prospective buyers of Medical equipment will be identified by GE from doctors in private practice, nursing homes, hospitals, diagnostic centres GE will provide support in sale of repossessed equipments on a best effort basis in the event of any default from the buyer Loan Amount: Maximum Rs 500 lacs (Prior Approval of GM-Network required for loan above Rs 500 lacs) Margin: 20% Repayment: 5 to 8 years including a moratorium period not exceeding 1 year Collateral: For loans up to Rs. 10 lakhs- Nil For loans over Rs. 10 lakhs- Tangible security for at least 25% of the loan amount EQUIPMENT FINANCE TIE UP WITH PHILIPS ELECTRONICS INDIA LTD

Prospective buyers of Medical equipment will be identified by Philips from doctors in private practice, nursing homes, hospitals, diagnostic centres In most of the cases, Philips will provide support in sale of repossessed equipments on a best effort basis in the event of any default from the buyer In high value cases (normally for equipments valued at Rs 25 lacs and above), Philips will provide First Loss Default Guarantee (FLDG) Features of FLDG i)Every individual case of loan to be funded by the Bank under this scheme will be based on an initial recommendation letter from Philips ii)If any such account turns NPA, on repossession of the equipments by Bank under SARFESI Act, Philips will arrange to find alternate buyers for the equipments iii)Any shortfall in the loan account not exceeding 25% of the original loan amount will be made good by Philips Loan Amount: For Medical practitioners- Borrowings not to exceed Rs 100 lacs For non medical practitioners (companies/corporate) For purchase of equipment upto Rs 500 lacs Margin: 20% Repayment: 5 to 8 years including a moratorium period not exceeding 1 year Collateral: For loans up to Rs. 10 lakhs- Nil For loans over Rs. 10 lakhs- Tangible security for at least 50% of the loan amount WORKING CAPITAL FINANCE TO TRADE & SERVICE SECTOR Retail and wholesale traders in agricultural and industrial commodities, Dealers in consumer durables, consumer goods, vehicles, showrooms, etc. Units in C&I segment established with profits at least in the preceding 3 years with CRA rating of SB4(Old)/SB9(New) and above Working capital requirements Cash credit limit with a sub-limit for LCs if required

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15% of projected annual turnover which should not be more than 25 % of the turnover in the previous year subject to a maximum of Rs.5 Crores Margin: 25% A concession of 0.50% may be offered for units with at least 75% collateral coverage Collateral security of at least 50% is to be prescribed. Based on Credit Risk Assessment, antecedents and market reputation of borrower, reduction in collateral coverage may be allowed to be reduced up to 25% of the total exposure for sanction by & upto NCC/SMECC. No administrative approval of CCC-II is required. In respect of advances to the trade sub-segment only sanctioned by CCC II and above, a minimum of 10% collateral may be considered in exceptional circumstances subject to permission of appropriate authority In case the proposal does not fit into the turnover based model of credit assessment, the traditional method of projected balance sheet method may be adopted. CAR LOAN TO SME UNITS Purpose: For purchase of passenger cars, jeeps, multi utility vehicles, and sports utility vehicles (Used Vehicle should not be more than 5 years old/ Registration Paper should not be duplicate) Eligibility: 1. SME units having borrowing arrangements with the Bank, or their family member either in their own name or in the units name. 2. SME CA holders of the Bank or their family member either in their own name or in the unit’s name 3. Other SME clients subject to obtaining a NOC from the bank where they might have a loan account. 4. MCG units of the Bank Minimum Net Annual Income Case I – When the loan is availed of in the name of an individual:

Individual must have a net annual income of Rs. 1 lakh and above for the last year as per income tax return. Case II – When the loan is availed of in the name of unit: Since the promoter/partner will be the joint applicant and is also liable to repay the loan so he/she should meet the following criterion: Income: The joint applicant must have a net annual income of Rs. 1 lakh and above for the last year as per income tax return In case II, when loan is availed of in the name of unit, in addition to the Promoter /Partner, “Senior Executive” of the unit can also join as co-applicant provided, 1. The loan is availed of in the name of unit, 2. Company or Promoter(s)/Partner(s) will guarantee the repayment of loan Whenever “Senior Executive” joins as a co-applicant after fulfilling all the above mentioned conditions, his (Senior Executive’s) Net Annual Income (NAI) shall be clubbed with the NAI of joint applicant (Promoter / Partner) to determine the Minimum Eligible Income All SME units under Manufacturing or Trade & Services sector, promoters/partners of these units, their family members and senior executives of these SME units are eligible for this product. This facility can be extended to as many promoters/partners of the SME units, SME unit itself, their family members and senior executives. Family members mean spouse & children. “Senior Executive” is defined as employees in Top Management, Directors or employees holding the position of responsibility in an Organisation or in other words Executives falling one level below the promoter/partner in hierarchy. Loan Amount: The maximum loan amount would be 2.5 times the net annual income (i.e., income as per latest income tax return filed less tax payable)

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Regular income from all sources can be considered provided the sanctioning authority is satisfied with the proof of income. The income of spouse can be included provided the spouse guarantees the loan. Whenever “Senior Executive” has joined-in as a co-applicant after fulfilling all the above mentioned conditions, his (Senior Executive’s) Net Annual Income (NAI) shall be clubbed with the NAI of joint applicant (Promoter / Partner) to determine the Maximum Loan Amount For new vehicles, there is no ceiling in loan amount (For Used Vehicles: Max Rs 15 Lakh) In any case the EMI/NMI* percentage should not exceed 50%. The A.G.M. Region/Branch or the sanctioning authority, where such sanctioning authority is higher in rank than Chief Manger, will have the discretion to grant a higher loan, subject to EMI/NMI percentage not exceeding 60% in deserving cases or owing to strategic reasons Margin: 15% of the ‘on road price’ of the vehicle Repayment: In Monthly/Quarterly installments; Maximum 7 years (For Used Vehicles: Within 7 yrs from date of Original sale) Documents: P Segment Car loan documents Security: Only Hypothecation of Vehicle Processing Fee: 1. When loans are sanctioned: 0.50% of the loan amount subject to minimum of Rs.500/- and maximum of Rs.10,000/-. 2. When loans are rejected: 25% of the ‘Processing Fee’ will be retained if the application is rejected after pre-sanction survey subject to minimum of Rs.500/- and maximum of Rs.2500/- Prepayment fee: 2% of the amount of the loan prepaid will be levied if; i)The loan is taken over by any other bank/financial institution Or ii)The loan is repaid before expiry of half of the agreed repayment period Or iii)Partial repayment is being made in the first year

However, no pre-payment penalty should be levied if the loan account is foreclosed for taking a fresh car loan for new or used car from Bank. FINANCE TO RESTAURANTS Term loan or overdraft to owners of Restaurants &Fast food chains Purpose For purchase of Kitchen equipments For investment in Interior decoration For purchase of furniture and fixtures For purchase of land and construction of buildings Loan Amount: Investment in the Restaurant for the aforementioned purposes less margin / promoters contribution whichever is lower Margin: 25% Repayment: Up to 7 years when land and building cost included in loan, otherwise 5 years Collateral: Extension of charge over current assets, fixed assets and other existing collateral if any Obtaining additional tangible security such as immovable property, bank deposits, etc. is to be explored wherever possible In all cases personal guarantees of proprietors/partners/promoters to be invariably obtained In cases of corporate restaurants, pledge of promoter’s equity should be examined SME CONSTRUCTION EQUIPMENT LOAN Purpose: To purchase New Machinery/ Equipments/Vehicles by borrowers engaged in construction or mining activity Firms/ Companies (including Contractors) engaged in construction or mining activity with a minimum rating of SB-8 (new) Loan Amount: Minimum Rs 25.00 lac & Maximum Rs 25.00 Cr. (In Delhi, Kolkata, Chennai, Mumbai, Hyderabad and Bangalore maximum limit is Rs 50.00 Cr) Margin: 15% - 20% in case of SB-1 to SB-5 borrowers 20% – 25% in case of others

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Repayment: 2 to 3 years from first disbursement (including moratorium period of maximum 3 months). Tenure can be extended upto 4 years on merits of the case. Repayment mode: EMIs Variable repayment program based on cash flow of the company can also be considered if the borrower so desires. Collateral: Hypothecation of other unencumbered equipments or mortgage of property to the extent of at least 25% of the loan amount The loan may be disbursed in several tranches within a period of maximum one year from the date of Sanction depending on requirement of the borrower for purchase of equipments/ machinery/ vehicles within one year. One tranche should not be less than 10% of the amount of loan. Payment to be made direct to suppliers. 50% concession in the prescribed processing & Documentation charges Prepayment Charges: 2% of the prepaid amount Penal Interest: For SB 1 to SB‐5 borrowers: @ 1.00% per month for the default amount. For other borrowers: @ 2.00% per month for the default amount. On business considerations sanctioning authority may approve concession upto 50% CONSTRUCTION EQUIPMENT LOAN (JCB / TELCON / ESCORTS / VOLVO) Term Loan to purchase construction equipments of respective manufacturers Eligibility: Individuals/ Firms/ Companies engaged in construction or mining activity Advance is not to be sanctioned where rating is below SB 9 Loan Amount: Minimum Rs 5 lac (ESCORTS) ; 15 lac (others) & Maximum Rs 100 lac (ESCORTS & JCB) & Rs 500 lac (TELCON & VOLVO) Margin (ESCORTS): 15% Margin (JCB)

25% in case of borrowers who are new to this line i.e. buying their first loader/ machinery etc 15% in case of buyers having up to 9 machines 5% in case of buyers already having more than 9 machines Margin (TELCON): 25% in case of borrowers who are new to this line i.e. buying their first loader/ machinery etc. (Any firm criterion is not being proposed and it would be the branch discretion to decide whether a borrower is new) 15% to borrowers rated SB(1) and SB (2) 20% in case of other borrowers i.e. which are below the SB 1 & 2 rating, unrated (where CRA is not applicable as per the Bank instructions) etc Margin VOLVO: 25% in case of borrowers who are new to this line i.e. buying their first loader/ machinery etc. (Any firm criterion is not being proposed and it would be the branch discretion to decide whether a borrower is new) 15% to borrowers rated SB(1), SB (2) and SB (3) 20% in case of other borrowers i.e. which are below the SB (3) rating, unrated (where CRA is not applicable as per the Bank instructions) etc Repayment (All) In EMIs Up to 4 years (including moratorium of up to 3 months) Penal Interest: ESCORTS- 1% for the amount and period in default OTHERS- 2% for the amount and period in default Primary Security (All) Hypothecation of the Equipment (s) financed from the Bank Loan. In case of Vehicles, registration of charge with RTO is to be ensured. Collateral Security (All) All eligible advances to be covered under the collateral free CGTMSE Scheme. However, fee will be recovered from the borrower.

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In case an advance cannot be covered under CGTMSE - hypothecation of other unencumbered equipments or mortgage of property to the extent of at least 25% of the loan amount is to be obtained. In case of ESCORTS, Advance up to Rs 10 lac to be mandatorily sanctioned under CGTMSE scheme without any collateral TRADERS EASY LOAN Eligibility: Existing customers with a satisfactory track record. New connections including take - over can be considered subject to take- over norms. Loan Amount: Rs.25000/- to Rs.5 Crore For Rice Mills (Rs 5 lacs to Rs 5 Crore) For Cold Storage Units (Upto Rs 1 Crore) Assessment of Loan Amount 20% of the projected annual turnover or 75% of the capital costs to be incurred for business or 65% of realizable value of property whichever is less 20% to 40% of the projected annual turnover for rice mills Margin35% of the realizable value of the property to be mortgaged or 25% of the costs to be incurred for the business if TEL is availed for capital expenditure Repayment Cash Credit - On demand Demand Loan - 36 months Term Loan - Upto a maximum of 60 months based on cash flows in monthly / quarterly / half yearly installments Special Features: i) Working Capital credit facilities would be valid for a period of two years subject to annual review. The review will be based mainly on conduct of account. Branch Manager would be the reviewing authority ii) At the time of renewal / annual review of the account, if the limits are assessed to be less than the existing limits, and the borrower is not in a position to repay the excess amount in 90 days, the excess amount would be carved out as a demand loan and may be

allowed to be repaid within a maximum of 24 monthly installments. iii) During this time, if on later renewal, the borrower is eligible for higher limits, the repayable amount and the repayment period would be reduced accordingly iv) Stock statements need to be furnished at the time of sanction and at quarterly intervals, as at the end of February, May, August and November thereafter. v) Stock statements waived for TL and DL vi) Credit summations should be at least 200% of the CC limit. RENT PLUS Purpose :To meet liquidity mismatches Eligibility : Owners of large commercial / office spaces rented out to large corporate, MNCs, banks, PSUs, our Bank, etc. properties situated in rural areas, administrative clearance from GM of Network to be obtained before sanction of the loan Authority structure For approval of lessees other than MNCs/Banks/Large and Medium size Corporate: a. GM (Network)/ GM (MCG) / GM (CAG) for loans upto Rs. 10.00 crores b. CGM of Circle/CGM (MCG)/CGM (CAG) for loans exceeding Rs.10.00 crores and up to Rs. 50.00 crores c. Concerned Group Head for loans beyond Rs. 50.00 crores Loan Amount: Minimum Rs.50,000/- & Maximum Rs.10 Crore (No ceiling in respect of loans to Medium and Large Corporate through Rent Securitisation route) Assessment of Loan Amount i.60% of the gross rental income for the residual lease period less (advance rent received+ property tax + income tax + other statutory dues of the lessor) or ii. 60% of the realizable value of the property whichever is less Discretion to allow upto 70% under item i or ii is vested with CGM of the Circle Margin: 40% (CGMs of Circles have discretion to reduce the margin to 30%

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Period of Loan : 7 Years or residual lease period whichever is less SCHOOL PLUS Eligibility: Government Aided schools / colleges Private schools /colleges Schools/ colleges run by trusts of good standing Technical institutes recognized by AICTE / NBA / MCI Professional colleges and coaching institutes are excluded from this product and should be assessed on usual CRA model Eligibility for finance is based on credit score Applicant getting a credit score of less than 4 are not eligible for finance Loan Amount : No Cap Margin : 15% of Project Cost Minimum DSCR 2 Repayment Upto Rs. 2 lacs Maximum of 36 EMI Rs.2 lacs to Rs. 5 lacs Maximum of 60 EMI Rs.5 lacs and above Maximum of 84 EMI TRANSPORT PLUS Eligibility: Surface transport operators owning more than 10 trucks /tankers / tippers / luxury buses etc including the Proposed Loan Amount For Corporates: Rs 10 lacs to 10 Crores For Non Corporates: 10 Lacs to 7.50 Crores Margin: 20% (TL & CC) Repayment: Maximum 5 years Special Sanction Conditions Holding valid national / State route permits Promoters/CEO should be IT assesses with annual income of Rs.3lacs as per IT assessment in the previous year Promoter/ CEO should have experience of 3 years or more in the field Should be reputed and IBA approved in the case of trucks Should record a rising trend in income and profits in the last two years with a profit of at least Rs.3 lacs in the past two years

Should have had satisfactory dealings with banks /FIs for at least 2 years Should have a receivable level of within 4 months Value of orders on hand should be at least 30% of projected annual turnover Minimum Average DSCR (gross) : 2* Minimum Current ratio 1.33* Maximum TOL /TNW 2.75* (*These norms are relaxable by the sanctioning authority upto the levels as per loan policy guidelines if 100% tie –up arrangements are in place.) SBI SHOPPE Purpose For purchase of new / old shops / establishment / offices Modernisation / renovation / face lifting of shops Expansion /addition /alteration to shops Dealer’s showroom Dealer’s showroom under tie-up arrangement with the reputed industries (viz. Bajaj, Hindustan Lever, Mahindra). Building for Training Centres, Services Centres Repairs Centre/Garage Building for Consultant/Chartered Accountants All furniture/fixtures, electrical fittings and other accessories required for the showroom/offices/shops Loan Amount Maximum of Rs 20 Lakhs Margin 25% for new and 40% for purchase of old premises Repayment 3 to 7 years excluding a maximum moratorium period of 6 months Minimum DSCR 1.75 No Objection Certificate and No Lien Letter to be invariably obtained from the owner-lessor of the property in the case of rented property

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Repayment period should be well within the lease period in the case of rented property SBI SHOPPE PLUS Special Feature i)It is a combination of Housing Loan & SBI Shoppe ii)Provision of Two Separate Term Loans First TL for construction of House as per HL Scheme Second Term Loan for construction of Shop/Office as per SBI Shoppe Separate Documents for Both Term Loans SBI SMILE Launched in place of Equity Fund Scheme Interest Free Loan for providing equity assistance to professional and technically qualified entrepreneurs setting up new Micro and Small enterprises (MSEs) and units covered under the Bank’s Project Uptech for technology up gradation Professionals and Technically qualified persons for this scheme will cover doctors including dentists, engineers (diploma and degree holders), management graduates etc Should be a new unit except in case of units covered under Bank’s Project Uptech Programme Entrepreneur must devote his direct and full attention to the unit Should not be involved in any other unit in any capacity- proprietary or administrative Entire borrowings should be confined to the Bank Total project cost should be more than Rs 10 lacs Extent of Assistance For Micro and Small Scale industries and units under Project Uptech- Min Rs 1 lac & Max Rs 10 Lacs For professionals and self-employed persons Min Rs 50000/- & Max Rs 5 lacs Equity assistance should be in multiples of Rs.1000/- rounded off to the nearest thousand

Additional ELA may be considered in case of escalation in project cost during implementation process subject to the above ceilings Computation of Assistance Difference between applicable margin (15%) and capital contributed by entrepreneur including seed capital & subsidy, if any, subject to the above ceiling Min Equity Contribution by Entrepreneur – 7.5% of cost of Project Repayment: In 3 yrs after initial moratorium of 5 to 7 yrs Disbursement – in lump sum or in Installments RICE MILLS PLUS (SSI) Purpose: Acquisition of machinery/factory building for modernization & Working capital needs Eligibility Profit making existing units with CRA rating of SB4 and above as per the simplified CRA system for Rice Mills Takeover permitted New units also eligible if 50% of partners are our existing borrowers and obtain SB3 rating as per regular CRA model for SSI & C&I units Type of Facilities TL, CC, Outward Bill Limit, LC, BG & SME Credit Plus (for unforeseen exigencies) Loan Amount No upper ceiling WC assessment as per Nayak Committee for limits upto Rs 5 Crores Higher Limit under PBS Method can be considered Peak & Non Peak Limits may be fixed depending upon actual need Margin TL - 15-25% WC (Stocks): 15-20% (paddy), Broken (20%), Bran (30%), Gunny Bag (40%) WC (Book debt): 40% (Cover period- Max 60 days) Can be lowered upto 25% where adequate collateral is available

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Repayment- TL- 5to 7 yrs excl max gestation period of 12 months Collateral: Upto Rs 5lacs –NIL, Above Rs 5 lacs- EM/ tangibles not less than 50% for SB7 and above and not less than 60% for SB8 & SB9 Processing Fee: Rs 115 per lac Upfront fee for TL- 0.60% of loan amount Issue of Draft/BC/Cheque Collection- 50% of applicable charges SBI PARYATAN PLUS Covers all segments of tourism- Hospitality Industry, Transportation, Travel Agents, Tour operators, Adventure tourism, Religious tourism Purpose: Construction/ renovation/ modernization/ addition to hotels/ Yatri niwas/ Dharmshala etc; Construction of office premises/ purchase of computer & equipments by tour operators/ travel agents; purchase of luxury buses, cars, vans, house boats at tourist sites; establishment of Restaurants, fast food centres, coffee houses, Ice cream parlours, amusement park, health club etc Necessary Licenses to be obtained Maintenance of Saving Bank/ Current account where sales proceeds need to be deposited Wherever feasible it would be desirable to obtain audited financial statement Takeover permitted Loan amount: Min Rs 2 lacs & No Maximum Minimum DSCR 1.5 (in case of vehicles) Margin – 20% 40% for less than 5 years old vehicles Repayment- 3 to 7 years including start up period not exceeding 18 months Collateral – Tangible collateral in the form of Immovable Property, TDR, NSC, KVP, LIC, etc at least 50 of the loan amount doc Wherever feasible, tie up with Raj Tours &Travels, Thomas Cook, SOTC, etc to be arranged Wherever subsidy is available, it will be taken as promoter’s stake

GENERAL PURPOSE TERM LOAN- SSI (GPTL- SSI) Existing SSI Borrowers with CRA rating of SB3 (Old)/SB7(New) and above (as far as possible, minimum limit Rs 25 lakh) Should have earned pre-tax profit for last 3 years Should not have no history of default of any kind Purpose: Shoring up of NWC; Capital Expenditure; Substitution of high cost debt; R&D expenses; Quality up gradation to ISO standards Loan Amount- Maximum Rs. 50 lac Margin – 25% DSCR of 1.5; TOL/TNW not to exceed 3, Total Long term liabilities to equity not to exceed 2:1, Current ratio not to be less than 1 Repayment: In monthly /quarterly installments normally in 3 years, extendable upto 5 years in deserving cases Collateral: Extension of charge over existing collateral Obtention of additional collateral by way of tangible security to be explored Personal guarantees of proprietor/ partners / promoters to be invariably obtained CORPORATE LOAN Existing corporate and non-corporate customers in C&I and SSI segments with SB3 (old)/SB7 (New) rating Non customers can also be offered this product after ensuring the creditworthiness and Obtention of opinion report from their bankers Purpose: Repayment of high cost debt, VRS scheme, acquisition of trademarks, patents, shoring up of net working capital, etc Where the loan is for shoring up of NWC, then the loan amount should come down commensurate with the building up of the NWC

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It should be ensured that the loan amount is not diverted for purchase of land or shares for speculative purposes. Type of Facility: Clean Term Loan Loan Amount: Minimum Rs.25lacs Maximum Rs.10 Crores for non corporate(C&I – Mfg.) / SSI borrowers No cap for corporate borrowers Repayment period not to exceed 3 years at quarterly/half yearly intervals. Uneven or bullet installments may also be permitted based on the cash flows First charge on fixed assets on pari passu basis with other term lenders In case this is not possible for valid reasons, second charge on fixed assets should be obtained Personal Guarantee of promoters/partners/proprietor should be obtained In the case of Corporates, pledge of promoters' equity should be explored A second Corporate loan may also be considered while the first loan is outstanding subject to all the earlier loans and WC advances being regular and the conduct of the accounts has been regular WORKING CAPITAL FINANCE TO PRIVATE BUILDERS OF RESIDENTIAL FLATS To meet WC needs for completion of a project by reputed builders with an excellent track record of timely & quality construction and of sound financial strength Should have completed a few projects of similar size satisfactorily Should have an acceptable minimum net –owned funds Project should have all statutory clearances (services of retired municipal officials / advocates may be availed to ascertain and ensure that the various clearances obtained by the builders are genuine, current, without qualifications / constraining clauses, if any, and the impact thereof) Builder should be in position to develop the property within 18 to 24 months. Can be extended selectively to 36 months.

Assessment of Loan Amount will be based on the projected cash flow of the project. The reasonableness of the project cost has to be ascertained from specialized agencies The amount of bank finance to the project as also for each stage of its construction is to be restricted to 50% of the gap after reducing from the total requirement of funds, the advance received from the buyers of flats, credit from suppliers, statutory dues, etc. The remaining requirement of funds should come as promoter’s contribution The above statements should be certified by the borrowers’ auditors as also by architects/civil engineers Maximum exposure to a builder will be Rs.25 Crores or five times his net worth, whichever is lower Margin: At least 50 % of the gap at each stage Security EM of the land Can be waived in the case of reputed builders of good status and financial strength where the ultimate buyers of flats may have to raise loans against the security of the flats. However, Personal guarantees of directors/ partners or corporate guarantee of associate concerns acceptable to the Bank should be obtained besides obtaining ‘Negative lien’ from the borrower Tangible collateral security to the extent feasible should be obtained from the borrower / guarantor Repayment: Within a period of 24 months, Can be extended to 36 months by SA Payment should be received by the builder by cheque drawn jointly in favour of the Bank and the builder Physical verification of the work completed with reference to the monthly progress report submitted by the borrower will also be got done through a Civil Engineer in the Bank's approved list and stage disbursements will be made taking into consideration the Engineer's certification in this regard

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No administrative clearance is required in the case of limits granted by CCC-II and above. In all other cases, AC has to obtained from CCC-II Housing loans for flats in a building for which we have already extended credit facilities to the builder can be given. It would be easier to process proposals since the due diligence regarding the project would have already been completed. The proceeds of the housing loans will be used for extinguishing the loan to the builder FINANCING OF LARGE PRIVATE BUILDERS Eligibility: 1. Real estate developers with rating of SB3 (old)/SB7 (New) & above or at least 2nd best rating by an external rating agency of repute 2. Turnover achieved in any one of the preceding three financial years should be Minimum Rs 100 Crores for Builders operating from Mumbai, Delhi & Min Rs 50 Crores for builders operating from other metros/ big cities OR Should have completed min 1 million sq ft of construction since inception for builders operating from Mumbai, Delhi & min 0.5 million sq ft for builders from other metros/ big cities 3. Min 3 yrs of existence 4. Norms 2 & 3 may be waived for New entrants subject to min NOF (Net owned Fund) Rs 25 Crores Facility: CC/TL (Residential), TL (Commercial Estates) Loan Exposure: 3 times of NOF, Min Rs 25 Crores Individual: Max Rs 50 Crores- Proprietorship Rs 100 Crores -Firms Rs 150 Crores – Corporate Group : Max Rs 200 Crores (Additional requirement may be met through syndication) Quantum of Finance: Max 70% of gap arrived at for Residential complexes

Max 70% of the total cost of the project for Commercial Real Estates Repayment: Upto 60 months from the date of first draw down Security: Primary- Mortgage of land bldg financed by bank, Collateral- Per Guarantee of Directors/ partners/ Corporate Guarantee/ Negative Lien from Borrower. 125% tangibles if primary security waived SME CREDIT PLUS A clean cash credit facility to meet unforeseen expenses of Existing SSI Borrowers such as meeting bulk orders, repairs to machinery, tax payments, any other contingency etc) Can be extended to new borrowers also Units should have CRA rating of SB4(Old)/SB9(New) and above and or standard assets for the past two years Loan Amount – 20% of aggregate working capital limit (FB+NFB) subject to a maximum of Rs 25 lacs This facility can be used 12 times in a year there should be a gap of 15 days between the last date of repayment of outstanding and the next withdrawal Each amount of withdrawal should be repaid within 2 months No DP is available to cover the outstanding No cheque book issued and no need of maintaining 2 running accounts Limit renewed once in a year along with working capital limits STANDBY LINE OF CREDIT (WC) To meet genuine contingency needs arising out of bunching of orders, delay in shipment / realisation of receivables, sudden increase in raw material costs, mismatch in cash flows Existing SSI & C&I units and exporting units rated SB3(Old)/SB7(New) or above Selectively for SB4(Old)/SB9(New) and above Working capital limit by way of cash credit, EPC, bills discounting, against stocks, receivables, etc., as required Loan Amount:

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FB and NFB limits 15% of working capital facilities subject to a maximum of Rs.5 crs. May be made available as fund based and/or non fund based limits subject to the overall exposure being within the SLC (WC) In the case of consortium advances, only our share in the consortium should be reckoned for arriving at the quantum. Rate of Interest one percent higher than that applicable to the Cash Credit Limit. Discretion to waive the additional cost rests with the controller Drawing power should be available to cover the SLC(WC) limit Can be availed any number of times in a calendar year To be repaid within 2 months at any one instance There should be a gap of 15 days between the last date of repayment of outstandings and the next withdrawal Cannot be extended to units who have utilized SME Credit Plus facility Documents should be obtained for the aggregate limits including the SLC (WC) In case of consortium advances, the SLC(WC) should be covered by a separate document and charge Registered with the ROC wherever applicable STANDBY LINE OF CREDIT (TL) To meet capital expenditures related to regular business activity – Expansion & modernization, R&D, Installation of captive Power plant & up gradation of technology, renovation of factory/office, acquisition of software, tools etc, purchase of cars & other vehicles, replacement of old machines Existing C&I and SSI units rated SB3(Old) /SB9(New) and above, 5 years of existence & earned profit in last 3 year TOL/TNW should not be above 2.5 Average DSCR should be 1.75 and above Loan Amount: 2 times of the residual cash accrual during last year of operation, subject to maximum Rs 5

Crores for Corporates and Rs 2 Crores for Non-corporates Both Fund and Non-fund limits within overall SLC (TL) Limit Margin 20% Repayment 5 years including moratorium Sanction obtained along with regular Fund/NF Based WC. No separate assessment/ special justification is required for SLC (TL) Validity 12 months from date of sanction May be sanctioned at each review/renewal of WC based on fresh assessment Common credit documents. In case of consortium, separate TL document to be obtained Branch Head can release TL only after scrutiny of financial papers, FFRs etc. any number of times within SLC (TL) Limit. Reporting of Release of limit to controller from time to time. Interest CRA based, 1% higher than normal loan without any concession SME OPEN TERM LOAN Separate Open Term Loan to Manufacturing and services sectors merged into one. Applicable to all manufacturing units and among service sector for - Educational Institution, Healthcare Industry (Hospital, Doctors, Pathological Labs, and Nursing Home), Hospitality Industry (Hotels, Restaurants, and Health Club etc), and Transport Operators with minimum 25 vehicles. The loan can be considered for any genuine commercial purposes in line with the regular business activity of the customer. These would include term loans for: -Expansion and modernisation -Substitution of high cost debts / high cost term debts of other banks/FIs. -Design and introduction of new lay-outs in the factory to enhance productivity. -Up gradation of technology & energy conservation schemes/ machinery. -Acquisition of software, hardware, consumable tools, jigs, fixtures etc.

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-Acquisitions of ISO & other similar certifications. -Visits abroad for acquiring technology, finalizing business deals, participating in exhibitions/ fairs for market promotion etc - R&D activities of the units in overall business development objective. - For any other genuine need. A pre approved open term loan to Existing or new Corporate/ non-corporate customers of SME segment with ratings of SB7 and above. Requests from non customers can be considered subject to their compliance with takeover norms This is a unique facility, facilitating the customers to negotiate for acquisition of assets, etc. with the comfort of a pre-sanctioned term loan limit. There is no need for routine references to the Consultancy cells for TEV study for this Current Ratio & TOL/TNW should be at acceptable level. Current Ratio should be not be less than 1.00 DSCR should be at least 1.75 Loan Amount – Max 250 lacs. For expansion, modernization, technology up-gradation purposes,maximum Rs 2.5 crore, for the purpose of creation of tangible assets and maximum Rs 1 crore, for business development expenditure incurred for creation of intangible assets applicable to both manufacturing and service sector units. . Repayment period not to exceed three years. SA may selectively consider repayment period upto five years Sanction valid for 12 months from the date of sanction. After that unutilised portion lapses. Margin 10% uniformly Borrower free to avail facility at their convenience. Disbursal by Branch on demand from the borrower subject to scrutiny of certain basic financial information and their validation in line with projections assumed

at the time of sanction. Documentation to be obtained upfront for the sanctioned TL. Purpose wise Sub-limit may be drawn and loan account may be

opened accordingly each being treated as separate limits. At the end of 12th month, branch has to take stock and cancel the unutilized portion of TL Limit ELECTRONIC VENDOR FINANCING SCHEME Launched after renaming Express Vendor Discounting Scheme Purpose: To finance receivables of Vendors of Reputed Industry Majors (IMs) A dedicated Supply Chain Financing Unit (SCFU) headed by DGM has been established at SMEBU Corporate Centre, Mumbai SCFU (Marketing) is located at SMEBU, Corp Centre, Mumbai SCFU (Operations) is located at Shivsagar Branch Worli, Mumbai CAG/MCG identifies new IMs and ties up with them to finance their vendors Setting up over all exposure limit on IM, finalising the terms and conditions with IM, obtaining sanction for exposure to IM and communicating sanction and forwarding the list of IM’s vendors with requisite details to the SCFU (Marketing) will be the responsibility of CAG/MCG Marketing of the scheme and enrolling the vendors will be the responsibility of NBG branches, MCG branches and CAG branches depending on the size of vendor. SCFU (Marketing) and Mid-Corporate Regional Offices (MCROs) would also be involved in marketing the scheme to vendors Branches/SMECCCs/SMECCs committees will obtain sanction for credit limits to vendors from the respective competent authorities Accounts of the various vendors of IM will be domiciled at branches proximate to them The day to day transactions pertaining to e-VFS in the vendors account as well as IMs account will only be done by the SFCU (Operations) at SME Shiv Sagar, Mumbai. The branches holding vendors and IMs accounts will only have viewing rights for these accounts. As such no branch needs to pass any accounting entry under e-VFS

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scheme without prior intimation to SCFU (operations) at SME Shivsagar Branch, Mumbai. However, the Branch will be responsible for the review/renewal/enhancement, control and follow-up of the account, obtaining revival letter, etc. and for enhancing the relationship. Although e-VFS facility is without recourse to IM, the IM has assured payment of bill / invoice discounted on due date by auto debit to their loan accounts, the credit risk associated with this scheme is very less. Hence the appraisal process of assessing the limits to vendors has been simplified. The limits to vendors can be considered without insisting upon additional collateral or third party guarantee etc. on merits COMMODITY BACKED WAREHOUSE RECEIPT FINANCING Purpose: To finance traders/ owners of goods/ manufacturers for own processing against warehouse receipts of warehouses managed by MCX/NBHC, NCDEX(NSMSL) and CWC/SWC by way of working capital demand loan. Eligibility: Any one dealing in Commodities. CC facility for limits of Rs 1 Crore & Above

Limit for manufacturing units should be assessed under Assessed Bank Finance (ABF) and interchange of limit in between CC Hypothecation & WCDL against Warehouse receipt may be permitted. It should also be ensured that the projected stock level within the ABF does not exceed the quota of storage fixed by the respective Central/State Government, if any, for the unit under finance. Margin Cash Credit: 30% of the value of the

warehouse receipt, valued at market price OR

25% of the MSP declared by State / Central Government, whichever is higher The margin shall be topped up on a fortnightly basis. However, it should be topped up immediately in case the price of

commodity moves by more than 10%, in opposite direction, since last top up. Security Primary: Charge over warehouse receipt with lien marked in favour of the Bank Collateral: Personal guarantee of the partners/ directors as the case may be PRESHIPMENT EXPRESS VENDOR SCHEME Purpose: To finance working capital needs of vendors/ suppliers against purchase orders of reputed Corporates / IMs Restricted to vendors covered under EVDS