Long term loan policy kapol cooperative bank

Long-term Loan PolicyKartikey Jain

866

BBA LLB (Hons.)

VI Semester

Introduction• The Main objective of the Bank is to service the downtrodden and

economically weaker sections of the society

• The Business growth is given as under -

• Established in 1939

• 67963 Shareholders

• Dividend @ 10%

• Fully computerized 15 branches and Departments all interconnected (CORE BANKING).

• The Winners of "PIONEERS IN CORE BANKING"

• Customers over 250000

• Audit rating 'A'

• Staff 395

• OTHER DETAILS ARE -

• The Bank introduced PAN CARD facility

• The Bank has tied-up with Corporation Bank e-Tax Payment system

• The Bank has introduced Franking facility for Document Stamping.

• The Bank has tie-up with Max Life Insurance for life insurance products.

• The Bank was the first to introduce the new concept of "COUNTER LESS BANKING".

• The Bank is amongst the first to introduce DEMAT SERVICES in May 1999. It has an active client base of over 24000.

• The Bank achieved "SCHEDULED BANK STATUS" in January, 1998 and "MULTI-STATE" status on 9th August, 2000 with area of operation extended to Ahmedabad and Surat Districts in Gujarat State.

• The Bank has 14 branches in Mumbai and one branch in Surat which are fully computerized.

• The Bank has provided ATM facility at Vile Parle (West), Malad (W), Picket Road (Kalbaddevi) , Mulund (W)  and Kandivali (W) Branch and is in the process of providing ATM services at one more branch.

• CORE BANKING SOLUTION : The Bank has established its Core Banking Solution and interconnected all its Branches and ATMs to provide quick & quality services to the customers which facilitates "ANY WHERE AND ANY BRANCH BANKING".

• RTGS & NEFT : The Bank is an active member of "RTGS / NEFT" introduced by the Reserve Bank of India.

Long-term Loan• Long-term loan is a form of debt that is paid off over an extended time

frame that exceeds one year in duration.

• It is a monetary loan that is repaid in regular payments over a set period of time.

• Long-term loans usually last between one and ten years, but may last as long as 30 years in some cases. It usually involves an unfixed interest rate that will add additional balance to be repaid.

LoansDEFINITION OF LOAN

The act of giving money, property or other material goods to a another party in exchange for future repayment of the principal amount along with interest or other finance charges. A loan may be for a specific, one-time amount or can be available as open-ended credit up to a specified ceiling amount.

TYPES OF LOANS

1. Secured Loans: A secured loan is a loan in which the borrower pledges some asset as a collateral. Ex: Housing Loans

2. Unsecured Loans: Unsecured loans are loans that are not secured against the borrower assets.

Loan Schemes of Kapol Cooperative Bank Ltd.• Housing Loan

• Consumer Durables Loan

• Educational Loan

• Computer Loan

• Vehicle Loan

• Personal Loan

• Loan/OD against Shares/Debentures/PSU Bond

• Term Loan

Housing LoanType Of Facility Housing Loan

Maximum amount Rs.70.00 lakhs

Rate of interest •12.00% p.a. up to Rs.5.00 lakhs•12.50% p.a. above Rs.5.00 lakhs

Maximum repayment period

240 months

EMI for Rs.1.00 lakh •12.00 % P.A.

•12.00 % P.A.

Margin 25% on agreement value

Eligibility Professionals, businessman, salaried employeesand self employed

Purpose To purchase ownership flat.

The Kapol Co-operative Bank Ltd., is offering the following various loans and advances

Consumer Durables LoanType Of Facility Consumer Durables Loan

Maximum amount Rs.2.00 lakhs

Rate of interest 16.50% p.a.

Maximum repayment period

60 months

EMI for Rs.1.00 lakh Rs.2,458/-

Margin 25% on value of proforma invoice / Quotation

Eligibility Professionals, businessman, salaried employeesand self employed

purpose To purchase consumer durables

Educational LoanType Of Facility Educational Loan

Maximum amount Rs.10.00 lakhs for education in IndiaRs.20.00 lakhs for education abroad

Rate of interest 14% p.a.

Maximum repayment period

60 months (max) with moratorium period of 6 months (max)

EMI for Rs.1.00 lakh Rs.2,327/-

Margin 25% on total education fees

Eligibility Students,Professionals,businessman,salaried employeesand self employed

Purpose For higher education

Computer LoanType Of Facility Computer Loan (For Personal Use)

Maximum amount Rs.1.00 lakh

Rate of interest 15% p.a.

Maximum repayment period

36 months (max)

EMI for Rs.1.00 lakh Rs.3,467/-

Margin 25% on value of proforma invoice / Quotation

Eligibility Professionals, businessman, salaried employeesand self employed

Purpose To purchase computer for personal use

The Kapol Co-operative Bank Ltd., is offering the following various loans and advances 

Vehicle LoanType Of Facility Vehicle Loan (Two Wheeler)

Maximum amount Rs.0.75 lakh

Rate of interest 13.50% p.a.

Maximum repayment period

60 months (max)

EMI Rs.1,726/-

Margin 25% on value of proforma invoice / Quotation

Eligibility Professionals, businessman, salaried employees and self employed

Purpose To purchase two wheeler

Type Of Facility Vehicle Loan (Four Wheeler For Personal Use)

Maximum amount Rs.50.00 lakhsHowever, eligibility subject repaying capacity.

Rate of interest 13.50% p.a. for Brand new vehicle

Maximum repayment period 60 months (max)

EMI for Rs.1.00 lakh Rs.2,301/-

Margin 25% on value of proforma invoice / Quotation (Brand new vehicle)

Eligibility Professionals, businessman, salaried employeesand self employed

Purpose To purchase four wheeler for personal use

Type Of Facility Vehicle Loan (Four Wheeler For Commercial Purpose)

Maximum amount Rs.750.00 lakhsHowever, eligibility subject repaying capacity.

Rate of interest 15.00% p.a. for Brand new vehicle (Loan amount up to Rs.5.00 lakhs)&16.00% p.a. for Brand new vehicle (Loan amount above Rs.5.00 lakhs)

Maximum repayment period 60 months (max)

EMI for Rs.1.00 lakh Rs.2,379/- with interest @ 15.00% p.a.&Rs.2,432/- with interest @ 16.00% p.a.

Margin 25% on value of proforma invoice / Quotation(Brand new vehicle)

Eligibility Professionals, businessman, salaried employees and self employed

Purpose To purchase four wheeler for commercial use

Personal LoanType Of Facility Personal Loan

Maximum amount Rs.2.00 lakhs

Rate of interest 16.50% p.a.

Maximum repayment period

60 months (max)

EMI for Rs.1.00 lakh Rs.2,458/-

Eligibility Professionals, businessman, salaried employees and self employed

Purpose For personal purpose like marriage, hospitalization, religious ceremony etc.

Loan/OD against Shares/Debentures/PSU BondType Of Facility Loan / OD Against Shares / Debenture /

PSU Bond

Maximum amount Rs.5.00 lakhs (Physical shares)Rs.10.00 lakhs (Demated shares)

Rate of interest 13.50% p.a.

Maximum repayment period

24 months (max)

EMI for Rs.1.00 lakh Rs.4,778/- p.m.

Margin 50% on market value of demated shares acceptable to the Bank

Eligibility Professionals, businessman, salaried employees and self employed

Purpose For investment in shares & Debentures

Type Of Facility •Cash Credit Against Hypothecation Of StockAND / OR Book Debts

•Bill Discounting

Maximum amount Rs.750.00 lakhs

Rate of interest •14.00% p.a. up to Rs.5.00 lakhs•15.00% p.a. above Rs.5.00 lakhs

Maximum repayment period Annual review

Margin A)   B)

•40% cost/market price, whichever is lower.•50% of Book Debts not exceeding 90 daysBills drawn on reputed Companies. Tenure of Bills not toexceed 90 days.

Eligibility Businessman

Purpose For development of business

Term LoanType Of Facility Term Loan (Asset Finance) / ODIP

Maximum amount Rs.800.00 lakhs

Rate of interest 16.50% p.a.

Maximum repayment period

60 months (max) / yearly review

EMI for Rs.1.00 lakh Rs.2,458/- / N.A. (ODIP)

Margin 50% on market value of property

Eligibility Professionals, businessman and self employed

Purpose For development of business

Type Of Facility Term Loan (Machinery)

Maximum amount Rs.800.00 lakhs

Rate of interest •14.00% p.a. up to Rs.5.00 lakhs•15.00% p.a. above Rs.5.00 lakhs

Maximum repayment period

60 months (max)

EMI for Rs.1.00 lakh  14% P.A. 15% P.A. 

Margin 25% of value of proforma invoice / Quotation.

Eligibility Professionals, businessman and self employed

Purpose To purchase machinery

Graphical Representation of Loans Advanced by Kapol Bank

2007 2008 2009 2010 2011 20120

100

200

300

400

500

600

700

Long-term Loans (in crores)

Long-term Loans (in crores)

Analysis• Most of the loans have a long repayment period usually exceeding 1

year.

• Loan/OD against Shares/Debentures/PSU Bond and Term Loan offered by Kapol Bank are subject to yearly review, therefore, these loans can be short term loans as well.

• Kapol Bank offers variety of loans ranging from housing loans to Loan/OD against Shares/Debentures/PSU Bond.

• The margin money on loans offered by the bank is very high ranging from 25%-50%.

• The bank only gives secured loans.

Thank You

Questions?