sme_book

Index Artisan Credit Card 2009 SME Credit Card 2009 Swarojgar Credit Card 2009 Cyber Plus 2009 SME smart Score 2009 SME Credit Plus 2009 Stand by Line of Credit 2009 General Purpose Term Loan for SSI Sector 2009 Open TL Mfg. sector 2009 Open TL Services 2009 Rice Mills Plus 2009 Dal Mills Plus 2009 Arthias Plus 2009 Working Capital Finance to T & S sector 2009 Flexi Loan for Trade Finance 2009 SBI Shoppe 2009 SBI Shoppe plus 2009 Express Vendor Discount scheme 2009 Pre-shipment Express Vendor scheme 2009 Traders Easy Loan 2009 Finance to Restaurant Standby Loan to Corporates for purchase of vehicles 2009 Autoclean 2009 Car Loans to SMEs 2007 Paryatan plus 2009 Transport plus 2009 Petro Credit 2009 WC for BPCL outlets Doctor plus 2009 SBI Siemens Medical Equipment plus 2009 SBI Dental Equipment plus 2009 Tie up with Apollo Health & Life Style Ltd (Apollo Clinic) School plus 2009 Semfex II 2009 Corporate Loan 2009 Rent Plus 2009 Working Capital Finance for Private Builders 2009 Loans from FCNRB funds Construction Equipment Loan (CEL) SME Care 2009 SME Help 2009 KYC Policy Revised Smart Score SME Checklist Circulars

ARTISAN CREDIT CARD

1. Target Group

: Artisans in the handicrafts sector and NOT covered by the government sponsored loan schemes.

2 Eligibility

: Minimum score of 60% under the simplified scoring model

Preference to be given to artisans registered with the Development Commissioner (Handicrafts)

Thrust to be to finance in clusters and preferably those supported by a Self Help Group (SHG)

Existing borrowers with limits upto Rs.2 lacs and satisfactory track record are also eligible.

3 Purpose

: For working capital requirements as well as cost of tools and equipment required for carrying out the manufacturing process.

4 Type of facilities

: A cash credit limit supported by a photo card which indicates the limit and validity and a passbook

5 Quantum of Finance

: Maximum of Rs.2 lacs. Assessment to be made under Nayak Committee norms and will be based on the simplified Scoring Model. The minimum score to be obtained for being eligible for finance is 60%

6 Margin

: Upto Rs. 25000/- NIL Over Rs.25000/- and upto Rs.2 lacs 20%

7 Rate of Interest

: Upto 50000/- 1.75% below SBAR over Rs.50000/- 0.75% below SBAR

8 Security: - Primary

- Collateral

: Hypothecation of assets financed by the Bank NIL Credit Guarantee Fund Trust for micro and small enterprises covers loans under Artisan Credit Card. The fees for the same will be reimbursed by the Development Commissioner (Handicrafts, Ministry of Textiles, GOI through their Regional Directors.

9 Processing fees As applicable to SSI segment but no fees to be charged for review/renewal.

10 Repayment

The portion of limit used for purchase of tools, etc. may be made repayable in 3years. The rest of the limit will be a revolving cash credit limit to be reviewed every year but valid for 3 years subject to satisfactory conduct of account.

11 Documentation

: As per simplified SME documentation

12 Special features

: New units can also be financed Beneficiaries registered with the Development

Commissioner (Handicrafts) will be eligible for insurance cover under group guarantee scheme for which the premium will be paid by the government and the beneficiaries in the ratio 60:40

13 Methodology and Operation of the account

The beneficiaries of the scheme will be issued a photo ID card which contain name, limit and validity of the facility. A passbook will also be issued which will contain all details of the beneficiary including address, and all transactions will be recorded in it on an ongoing basis.

Product Highlights: This scheme aims at providing adequate and timely assistance to the artisans to meet their credit requirements both for investments as well as for working capital in a flexible manner and at reasonable rate of interest. The facility will be extended by way of a revolving cash credit and the limit will be fixed based on the assessment made as per Nayak Committee norms. The assessment of the credit limit should include the cost of tools and equipment required. A photo ID card and a passbook will be issued and the limit will be valid for 3 years subject to annual review. Marketing tips:

The office of the Development Commissioner (Handicrafts) can provide a list of artisans registered with them. Preference should be given to these registered artisans for giving the artisan Credit Card.

Clusters of artisans , especially those who are supported by a Self Help Group should also be preferred for offering this product.

The borrower need not furnish any financial data and assessment has to be made based on the level of activity in the unit and other corroborative details.

FAQs

Can existing borrowers be given this facility?

Existing borrowers under the Bank's are eligible for this scheme. However, beneficiaries of other government sponsored schemes are not eligible for this facility.

What is the margin to be stipulated for the credit limit?

Upto Rs.25000/-, no margin & over Rs. 25000/- , 20% margin has to be fixed.

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SCORDING MODEL – SME CREDIT CARD / ARTISAN CREDIT CARD

Sl. No.

Parameters Max. Marks

Marks Scored

Criteria Marks

1. Age 3 18 – 30 31-45 46 & above

3 2 1

2. Owning House 3 Own (NM) Own (M) Not owning a house

3 2 0

3 Academic Qualification

5 Technical Professional / PG Graduates Less than Graduate

5 4 3 2

4. Experience In line of trade

4 More than 5 years 3-5 years 1-3 years Less than one year

4 3 2 1

5. Loyalty (Deposit / Advances)

3 Dealing with SBI More than 3 years 1-3 years Less than one year

3 2 1

6. Spouse Details

2 Employed Home-maker

2 0

7. Assessed for IT 2 Assessed Not assessed

2 0

8. Has Life Insurance Policy 2 Yes No.

2 0

9. Track record of repayment of Personal loan

3 Prompt/No loan Irregular

3

10. Continuous profits 5 Last 5 years Last 3 years Last year

5 3 1

11. Sales show rising trend 5 Last 5 years Last 3 years Last year

5 3 1

12. Marketing 3 Tie-up arrangement in operation Ancillary Others

3 2 1

13. TOL./TNW 5 Less than 1 1 to 2 2 to 4 More than 4

5 4 3 0

14. CA / CL 5 More than 1.33 1 to 1.33 Less than 1

5 3 0

15. DSCR 5 More than 2 1.5 to 2 1 to 1.5 Less than 1

5 3 2 0

16, Routing of sales turnover through the account

5 100% 75% 50% >50%

5 4 3 1

Total 60 N.B. In case any of the above parameters is not applicable, the scoring should be nomalised out of 60.

SME CREDIT CARD

1. Target Group

: SSI units, tiny units, village industries, Retail traders, professionals, self- employed, etc..

2. Eligibility

: Customers of the following segments with a satisfactory track record for the last two years :-

Small industrial units Small retail traders Professionals self employed persons Small business enterprises Transport operators

3. Purpose : To meet any kind of credit requirements including purchase of shop

4. Type of facilities : Cash Credit and/or Term Loan 5. Quantum of Finance : Maximum - Rs. 10lacs 6. Margin : 20% 7. Rate of Interest : As applicable to the market segment 8. Security:

- Primary

- Collateral

: Hypothecation of stock in trade, receivables, machinery, office equipment SSI – No collateral is to be insisted upon SBF—For loans more than Rs.25000/- charge over movable /immovable property/third party guarantee

9. Processing fees As applicable to SSI/SBF units 10. Repayment

: a) The working capital component should be reviewed every year provided the credit summation is not less than 50% of the projected turnover. If the credit summation is less than 50%, then a repayment schedule should be fixed for the outstandings in suitable monthly instalments.

b) The Term Loan component should be repayable in a maximum of 5years in suitable instalments.

11. Documentation : As per the nature of the facility 12. Special features

: Assessment A scoring model has been designed and those units which score a minimum of 60% qualify under the Scheme for which the working capital assessment will be made as under :-

i) For small business, retail traders, etc., - 20% of their annual turnover OR - 20% of turnover of the last 12 months in

their accounts, whichever is higher. ii) For self- employed and professionals

- 100% of gross annual income as declared in their income tax return

iii) For SSI units - As per Nayak Committee norms ie.,

20% of annual turnover

Validity The limit will be valid for 3 years but is subject to annual review

13. Methodology and Operation of the account

: - The borrower will be issued a photo identity card indicating sanctioned limit and validity of the limit.

- Cheque book to be marked as SME Credit Card - Pass Book to be issued - Submission of stock statements is waived but should

be obtained once in the last quarter to meet RBI stipulations

- Brief opinion report should be recorded.

Product Highlights: Small business units small industries in the tiny sector, retail traders, professionals and self employed persons, requiring working capital needs are very often unable to provide the elaborate financial data sought by banks from time to time for assessing their credit needs. To obviate this difficulty faced by the small units in SSI & SBF sectors, the Bank has designed this product which comprises of a photo identify card and a passbook which gives details of the limit and validity of the facility. The assessment is based on a simple scoring model and units which score 60% or more are eligible for this working capital cum term loan facility upto Rs.10 lacs valid for a period of 3 years. Marketing Tips

• This is a very user friendly product for any type of entrepreneur located in metro, urban, semi urban or rural areas.

• Small SSI units, retail traders, self employed professionals, small business enterprises etc., are the ideal target group.

• The limit being valid for 3 years for properly conducted accounts is a major plus point of this product.

• Stock statements are not required to be submitted except once a year. FAQs

Can the limit be increased within the 3 year validity of the card ? Yes. If the account has been conducted well and the unit requires a higher limit , then the limit can be enhanced subject to a maximum of Rs.10lacs.

Can a Kisan credit card holder be given this card ? No. Any borrower is entitled to only one type of a credit card.

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Application for SME / ARTISAN Credit Card 01. Name of the Unit

Proprietary Partnership 02. Constitution Company

03. Address Business

Telephone No. 04. Address Residential

Telephone /Mobile No. e-mail address

18-30 Years 31-45 Years 05. Age of

proprietor/Mng. Partner

46 & above

Own (Not mortgaged)

Own 06. Owning a House

Not owning

Technical Professional 07. Academic

Qualifications Graduate Undergraduate 08. Spouse Detail Employed Not working 09. Income Assessed

Under IT Yes No

10. Taken Life Insurance

Policy Yes No

SC/ST Minority Community ? Male Female

11. Whether belongs

Ex-Serviceman 12. SSI Registration Number

(as given by DIC) PAN No. /

TAN

Business Details

Description of Activity:

13.

Dealing with business since:

15. Track Record Year 1 Year 2 Year 3 Year 4 Year 5

Sales Profit 16. Banking with SBI Details of Deposit A/c Since

Details of Advance A/c Since Loans Repaid 17. Marketing Arrangements : Tie ups Ancillary Units

Others

18. TOL CA TNW CL 19. DSCR 20. Amount of Loan required

14. Project Details Rs. In lakhsCost of Project Amount Means of

finance Amounts

Fixed Assets

Working Capital

Term Loan

Current Assets

Others Total Total

21. I / we certify

(i) all information furnished by me is true, correct and complete. (ii) I / we have no borrowing arrangement for the unit with any Bank except as indicted in

the application. (iii) There are no overdues / statutory dues against me / us (iv) No legal action has been taken against me / us. (v) The information may also be exchanged by you with any agency you may deem fit. (vi) I / we shall furnish all other information that may be required by Bank in connection with

my application. (vii) You, your representative or any other agency as authorized by you may at any time

inspect / verify my/our assets, books of accounts, etc., in our factory/business premises as given above.

(viii) You may take appropriate safeguards / action for recovery of Bank’s dues including publication of defaulter’s name in website / submission to RBI.

(ix) We further agree that my / our loan will be governed by the rules of State Bank of India which may be in force from time to time.

Place: Date: Signature of the Applicant. Note: Documentary proof in the form of originals with self attested copies to be produced for verification. Originals to be returned and attested copies to be filed along with application.

SCORDING MODEL – SME CREDIT CARD / ARTISAN CREDIT CARD

Sl. No.

Parameters Max. Marks

Marks Scored

Criteria Marks

1. Age 3 18 – 30 31-45 46 & above

3 2 1

2. Owning House 3 Own (NM) Own (M) Not owning a house

3 2 0

3 Academic Qualification

5 Technical Professional / PG Graduates Less than Graduate

5 4 3 2

4. Experience In line of trade

4 More than 5 years 3-5 years 1-3 years Less than one year

4 3 2 1

5. Loyalty (Deposit / Advances)

3 Dealing with SBI More than 3 years 1-3 years Less than one year

3 2 1

6. Spouse Details

2 Employed Home-maker

2 0

7. Assessed for IT 2 Assessed Not assessed

2 0

8. Has Life Insurance Policy 2 Yes No.

2 0

9. Track record of repayment of Personal loan

3 Prompt/No loan Irregular

3

10. Continuous profits 5 Last 5 years Last 3 years Last year

5 3 1

11. Sales show rising trend 5 Last 5 years Last 3 years Last year

5 3 1

12. Marketing 3 Tie-up arrangement in operation Ancillary Others

3 2 1

13. TOL./TNW 5 Less than 1 1 to 2 2 to 4 More than 4

5 4 3 0

14. CA / CL 5 More than 1.33 1 to 1.33 Less than 1

5 3 0

15. DSCR 5 More than 2 1.5 to 2 1 to 1.5 Less than 1

5 3 2 0

16, Routing of sales turnover through the account

5 100% 75% 50% <50%

5 4 3 1

Total 60 N.B. In case any of the above parameters is not applicable, the scoring should be normalised out of 60.

APPRAISAL NOTE FOR SME CREDIT CARD

(Quantum of Finance Maximum Rs.10.00 lakhs) PROPOSAL FOR SANCTION OF 1. 2. CREDIT SCORE: /60. (Minimum 36) (as per annexure-I) Segment : SSI/SBF/C&I 1.Name of the unit 2 Constitution Registration No. of the unit.( if applicable)

3.Name of the Proprietor/ Partners /directors

4. Business Address Phone/Cell No.

5.Nature of activity 6. Banking with us from

Existing Limits Proposed Limits CC(Hyp) CC(Hyp) TL TL

7.Details of Limits as on date. (Rs.in lakhs)

LC/BG LC/BG Total indebtedness 8.Brief History (Brief bullet points only) (on Management, products, marketing tie-up etc.,)

1. 2. 3. 4. 5.

9.Project Details (If term loan is required)

Project Cost Rs. Bank Loan Recommended Rs. (As per assessment in annexure-III) Debt /Equity-

10. Financial Position: (Rs in lakhs) Years 1

(Act.) 2 (Act.)

3 (Est.)

4 (Proj.)

Sales income Profit Profit/net sales Tangible Net worth TOL/TNW Current Ratio

11. Working Capital Requirement

Working capital limit of Rs. Has been assessed as per the Projected turnover method (Nayak Committee method) as per the workings as on annexure-II.

12. Adverse remarks unattended in last Inspection & audit report, if any.

13. Whether borrower/ promoters figure as defaulters in CIBIL report for individuals.

14. Details of Associate concerns. Any NPA’s

15. Terms & conditions i) Primary Security Hypothecation of plant & machinery purchased out of

bank finance. Hypothecation of all kinds of Stocks & receivables. ( cover period for receivables ----- days)

ii) Collateral Security (not applicable if sanctioned under CGTFSI)

iii) Guarantee Personal guarantee of Sri. (Indicate Net worth of Guarantors with date of compilation of opinion reports)

iv) Margins WC TL v) Documents As per SME documentation vi) Submission of Stock Statements

To be submitted annually. Submit once in the last quarter of the year.

vii) Validity WC loan is valid for 3 years, but is subject to annual review.

viii) Insurance Stocks/Equipment to be insured for full market value for all possible risks with bank clause.

ix) Inspection Quarterly/Half yearly. x) Repayment xi)Rate of interest -------% above/below SBAR, effective rate; xii) Upfront fees/Processing Charges

xiii) Charges with ROC (If applicable)

16. Recommendations Recommended for sanction of Working Capital limit of Rs.

Term loan of Rs. Total limit -------------- On the above terms and conditions.

Signature Name Designation Date

Appraised & Assessed by Sanctioned by

Enclosure: Applicant’s application & others

Controlled by Signature Name Designation, Date

Annexure-I SCORING MODEL - SME CREDIT CARD

NAME OF THE UNIT:-

Sr.No. And Parameters Max Marks Marks scored Criteria Marks

1. Age 3 18-30 31-45

46 & above

3 2 1

2. Owning House 3 Own(NM) Own(M)

Not owning

3 2 0

3. Academic Qualification 5

Technical Professional/PG

Graduates Less than grad.

5 4 3 2

4. Experience in line of trade 4

More than 5 yrs 3-5 years 1-3 years

Less than 1 yr

4 3 2 1

5. Loyalty(Deposits /Advances) 3

Dealing with SBI More than 3 yrs

1-3 years Less than 1 yr

3 2 1

6. Spouse details 2 Employed Home Maker

2 0

7. Assessed For IT 2 Assessed Not assessed

2 0

8. Has Life Insurance Policy 2 Yes No

2 0

9. Track Record of repayment of personal loan 3 Prompt/No loan

Irregular 3 0

10. Continuous Profits 5 Last 5 years Last 3 years

Last year

5 3 1

11. Sales show rising trend 5 Last 5 years Last 3 years

Last year

5 3 1

12. Marketing 3 Tie up arrngt.

in operation Ancillary Others

3 2 1

13. TOL/TNW 5

Less than 1 1 to 2 2 to 4

More than 4

5 4 3 0

14. CA/CL(Current Ratio) 5 More than 1.33

1 to 1.33 Less than 1

5 3 0

15. D.S.C.R. 5

More than 2 1.5 to 2 1 to 1.5

Less than 1

5 3 2 0

16. Routing of sales turnover through the account 5

100% 75% 50%

<50%

5 4 3 1

TOTAL(NORMALISED TO 60) 60 NB: In case, any of the above parameters is not applicable, the scoring should be normalised out of 60.

Annexure-II Name of the Borrower: ASSESSMENT OF WORKING CAPITAL I. For SSI, SBF and Retail traders: Projected Turnover Method (Nayak Committee Method) A. Estimated Sales for the Current year Rs. B. Working capital required (25% of A) Rs. Eligible Bank Finance (80% of B) Rs. Bank finance Required Rs. Working Capital Assessed/recommended is II. For Self Employed and Professionals 50% of Gross annual income as declared in their Income Tax return.

III. Comments on Production aspects: (covering location advantages, availability of raw material and other utilities like water, power, fuel, labour etc. IV. Brief Comments on Marketing Aspects:

Annexure-III

Name of the Borrower: Assessment of Term Loan: 1.Project Details

Rs.in lakhs. Project cost

Cost Margin (%) Margin amount Required Bank Finance

Plant& Machinery Land &Buildings WC margin Contingencies Total project cost

Means of finance

Own funds Borrowings from friends and relatives

Bank finance others Total means of finance

Debt /Equity- 2. Term Loan Assessment: Rs.in lakhs Years 1

(Act) 2 (E)

3 (E)

4 (E)

5 (E)

6 (E)

Net Profit Depreciation Cash Accruals Repayment obligations (including Interest)

DSCR Average D.S.C.R- 3. Details of machinery/equipment proposed to purchase: 4. Project implementation schedule:

Annexure-III-A (for SRTO’s)

Name of the Borrower:

Term Loan assessment for Transport Operators (SRTO) Cost of Vehicle/s Rs. Borrower’s Margin ( %) Rs. Term loan recommended Rs. Assessment: Earnings 1 Total No. of Kilometers to be run per day (estimated)/ No.

of trips per day

2 Earnings per Km / earning per trip 3 No. of working days in a month 4 Total monthly earnings 1 x 2 x 3 …..A Expenses 5 Cost of Fuel per litre 6 Quantity of fuel required per month 7 Cost of fuel per month 8 Monthly Wages / batta for driver / cleaner etc 9 Maintenance 10 Repair 11 Insurance (annual premium / 12) 12 MV Tax (annual tax /12) 13 Interest on borrowings 14 Sustenance 15 Other expenses Total Monthly Expenses (5 to 15)….B 16 Monthly surplus …. A - B 17 Monthly TL repayment 18 DSCR 16/17 Brief details of above workings:

ANNUAL REVIEW OF SME CREDIT CARD

PROPOSAL FOR REVIEW OF WC AND TERM LOAN SANCTIONED UNDER ‘SME CREDIT CARD’ SCHEME. 1.Name of the unit 2 Constitution Proprietorship/Partnership/Private limited Company 3.Name of the Proprietor/partners/ /directors


5.Nature of activity 6. Date of Last Sanction/review

7. IRAC Position as on Facility Limit DP O/S Irregularity if

any CC TL

8. Present Position of Accounts as on date of review. (Rs. In lakhs) LC/BG Total indebtedness 9. Conduct of WC a/c (Rs. In lakhs)

Annual Turn over estimated Rs. Annual Credit Summations in the account Rs. (Atleast 50% should be routed in the account, other wise sanctioning authority has to take a view on continuation of facility) Value of the account: Rs. (Interest/Exchange/commission Booked) Any Cross selling Products Booked : (Give the name of the product booked)

10.a) Whether earlier sanctioned terms complied with? b) Comments on non-achievement of estimated sales/profit. c)No.of times the account was irregular last year and reasons.

11.Comments (from risk angle) (On other associates, Competition, quality of products, I&A comments, CIBIL report for individuals etc., and other relevant to Risks. Bullet points only)

11. Recommendations The Conduct of WC loan and Term loan has been reviewed and found satisfactory. Recommended for continuation of Working Capital limit of Rs. On the above terms and conditions as already set out in the original sanction dated— (mention the date) Signature Name Designation Date

Appraised by Approved by

SWAROJGAR CREDIT CARD

1. Target Group

: Self employed persons such as rickshaw owners, fishermen, handloom weavers, service sector for example, TV mechanics, and other micro-entrepreneurs, and SHGs.

2 Eligibility

: Individuals or group of individuals engaged in any viable micro-enterprise. SHGs can also be provided with this facility jointly with the entrepreneur.

3 Purpose

: For meeting the investment needs as well as the working capital requirements of self –employed persons


: Composite Loan which comprises of a Term Loan and a revolving Cash Credit account. The borrower can avail the entire component as a TL or for working capital only as per the actual requirement,


: Rs. 25000/- per borrower as composite loan . This can be increased to Rs.30000/- in deserving cases. The initial investment in fixed assets and/or working capital requirement /recurring expenditure are to be taken as the basis for fixing the limit. The cash credit limit should be fixed based on the operating cycle to the extent of the available balance after fixing the TL component A component not exceeding 20% of limit can be can be built in for consumption purposes in view of the family's contribution in the productive activity.

6 Margin

: NIL

7 Rate of Interest

: As applicable under SIB segment


- Collateral

: Assets acquired from Bank finance NIL

9 Processing fees Waived

10 Repayment

TL is repayable in 5 years in suitable instalments Cash credit limit should be normally repaid in 12 months and renewed annually based on the conduct of the account and repayment of the Term Loan. If the CC account remains continuously irregular for 90 days or remains outstanding for 12 months, no further debits should be permitted.

11 Documentation


12 Special features

: The facility should be covered under the Group Insurance Scheme and the cost borne by the Bank and the borrower equally

BMs have absolute freedom to select the borrowers for this product and there is government subsidy for this scheme

Withdrawal from the account will be through a withdrawal slip or cheque.

The SCC holder can be permitted to open a Savings bank account.


The borrowers will be issued a laminated credit card and a passbook. This will as an identity card and to record the transactions on an ongoing basis. The passbook will contain the repayment schedule of the term loan also. A passport size photograph of the borrower will be affixed on the credit card and the borrower will have to produce both the credit card and the passbook for withdrawal from the account. Self Help Groups(SHGs) can also be issued these cards and they will be jointly and severally liable for the amount. As far as possible cluster approach should be adopted for this product.

Product Highlights: This is a product similar to the Kisan Credit Card. Self employed persons in activities other than agriculture in urban and other areas are eligible to apply for this product for meeting their investment or working capital requirements. The borrower will be provided with a photo ID card and a passbook which have to be produced at the time of each withdrawal from the account. SHGs can also be issued this card. Marketing tips: SHGs operating in the area of operation can be offered this product as it would have an element of group guarantee in such a case and improves the chances of repayment.

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CYBER PLUS

1. Target Group

: Educated youth with basic computer knowledge especially in rural and semi-urban centres. Women entrepreneurs are to be given preference

2. Eligibility

: Educational qualifications –minimum SSC or 10th std. passed Age –between 18 and 45 years of age Should possess basic computer knowledge

3. Purpose

: To set up Internet/ Cyber cafes especially at rural and semi- urban centres with potential for such a facility

4. Type of facilities

: Composite Loan

5. Quantum of Finance

: Rs.50000/-

6 Margin

: Rs.9000/-

7. Rate of Interest

: 0.75%below SBAR

8. Security: - Primary

- Collateral

: Hypothecation of the assets purchased from Bank finance NIL Can be brought under CGTSI scheme


10. Repayment

36 to 40 monthly instalments

11 Documentation

: As per SME documentation

12 Special features

: N-Logue, a non profit 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.

The role of n-Logue is as under:- To identify, select and train the operators To provide logistic support and marketing Installation of equipment Provide internet connection Identifying usages and services To provide maintenance and insurance To interact with govt. departments to introduce

and enhance the scope of e-governance To monitor the assets and undertake marketing

of kiosk services To offer minimum buy back guarantee for the

assets The scheme is presently introduced in Chennai,

Mumbai, Hyderabad, Bangalore and Ahmedabad Circles.

The total project will be around Rs.59000/-for purchase of PC, monitor, CorDET wireless system, UPS, printer, Internet registration, software, furniture, etc..

Product Highlights: As a step towards building the technological gap between the urban haves and the rural have nots, nLogue, an NGO comprising of members of IIT, Chennai, have come together to provide technical and logistic assistance to rural entrepreneurs for setting up internet kiosks christened "CHIRAG" at rural centres. The Bank, on its part, has evolved this product to provide finance for this project for individual entrepreneurs in rural centres. This can also be taken up under the KVIC schemes which will provide a subsidy of 25% to 30%. Generation of income for this project will be through providing basic internet services, tie-up with government departments for e-governance, for payment of statutory dues, for getting information regarding crop yields, market prices, agriculture inputs, educational facilities such as coaching for exams, obtaining results, marks lists, admission to professional college etc. Marketing tips:

Tie up with nLogue to market this product Identify trained youth especially in rural and semi-urban centres and refer them to

nLogue for further due diligence. FAQs

What are the margin requirements for this scheme? The cost of the scheme has been estimated at Rs.59000/-. Of this, the maximum loan permissible under this scheme is Rs.50000/- . The rest will be the margin which has to be met either from own sources or from KVIC margin money scheme or any other scheme.

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SME SMART SCORE

1. Target Group

Individually managed proprietary/partnership firm or closely held public/private limited companies in the Small and medium industrial and trading sector under C&I and SIB segments.

2. Eligibility

The chief promoter /chief executive should be below 66 years of age

The applicant must obtain a minimum score of 60% with a minimum of 50% under each sub-head of Business and Personal details and a minimum of 10% under collateral details.

3. Purpose

Working Capital needs Acquisition of fixed assets


Cash Credit / Term Loan


SSI UNITS Rs.5lacs to below Rs.50lacs 20% of annual turnover for WC loan and 67% of project cost for TL TRADE & SERVICES Rs.5lacs to Rs.25lacs 15% of annual turnover for WC and 67% of project cost for TL.

6. Margin

25% for working capital component and 33% for TL component.

7. Rate of Interest

Special rates of interest are charged for facilities granted under SME Smart Score. These are furnished in the circulars issued from time to time for interest rates applicable to SIB segment.


- Collateral

Hypothecation of stocks and assets financed by Bank As per Bank's extant norms for WC and TLs

9. Processing fees

As applicable to SSI /SBF / C&I units

10. Repayment

WC loan to be reviewed annually and renewed once in two years.

TL not more than 5years excluding moratorium not exceeding 6months

11. Documentation

As per simplified SME documentation

12. Special features

A simplified appraisal model (enclosed) has been developed to standardise the appraisal process.

A special application form has been designed to capture all the required information at one instance.

Product Highlights: This product is designed to avoid delays in credit delivery due to cumbersome assessment processes. A simple scoring model has been designed for which all the data required has to be furnished at one go by way of an application form which has also been specially designed for this product. Units which score a minimum of 60% are eligible for this product. This product can be given to units in C&I, SSI and SBF segments for credit requirements between Rs.5 lacs to Rs.50 lacs( Rs.25lacs for T&S) based on the projected turnover and / or project cost. The loan quantum should be a minimum of 20% of turnover and/or, 67% of project cost. If a proposal does not fit into this model, it can also be considered on usual Bank's terms on merits.

Marketing tips: This product is especially useful in Trade advances and small industries All SMEs especially those which are individually managed proprietary concerns/

partnerships / private limited companies are the target group. FAQs

How to arrive at the quantum of loan for units engaged in trade for working capital

purposes? While SSI units qualify for a limit of 20% of their projected annual turnover (Nayak Committee norms), the trading units may be extended a working capital limit of 15 % of their projected annual turnover subject to a maximum of 25% increase in the projections over the turnover of the previous year.

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SME SMART SCORE

LOAN APPLICATION FORM

The SME Smart Score is available ONLY if the answers to all the following questions are “Yes”

1. Whether the chief promoter / Chief executive is below 66 years of age?

2. Whether none of the promoters has defaulted in payment of loans / guarantee to the lender/s?

3. Whether all the clearances including but not limited to environmental clearance for the project has been obtained / satisfactory evidence of their being made available will be provided?

4. Whether the borrower(s) belong to the area or their antecedents could be verified with satisfaction?

SME SMART SCORE


Please fill up this form only if the answers to all the following questions are “YES”

1. Whether the chief promoter / Chief executive is between 18 and 65 years of age

2. Whether the promoters are not defaulters to the banks/ financial institutions

3. Whether all clearances for the project have been obtained

4. Whether the promoters belong to the area of operation of the branch and have satisfactory

references?

General : Name of the Company / Firm _______________________________________________

Address (If factory and office are having different Addresses, Give the Address Nearest to the branch First)

Plot/Building/Plat Name and Number : _____________________________________________

Street Name _________________________________________________________________

Post Office __________________________________________________________________

City _____________________________________________ Pin _______________________

Telephone No. _______________________________ Fax : ___________________________

Address :

Plot/Building/Plat Name and Number : _____________________________________________

Street Name _________________________________________________________________

Post Office __________________________________________________________________

City _____________________________________________ Pin _______________________

Telephone No. _______________________________ Fax : ___________________________

Loan Applied for ______________________________________________________________

Purpose of the Loan ___________________________________________________________

When and how the loan will be repaid? ____________________________________________

PERSONAL DETAILS OF THE CHIEF PROMOTER / CHIEF EXECUTIVE

Name of the Chief / Promoter / Chief Executive :

Residential Address :

Plot/Building/Flat Name and Number : _____ ____________Street Name _______________

Post Office _________________________ City ___________________________________

Pin _______________________Telephone No. ________________Fax : ________________

What is your Date of Birth ? _______________

Let us know about your family :

i) Are you married ? Yes / No

ii) What is your spouse’s occupation?

iii) How many children do you have?

Your house : Owned Rented

What is your academic qualification?

Is it related to your line of trade? ____________________

Are you assessed for Income-Tax?

Your Account Number

How long are you having deposit account with SBI?

What would be the minimum balance in the account?

Do you have a life insurance policy?

I certify that all information furnished by me / us is true, correct and complete. I have no borrowing arrangement for the company / firm with any bank except as indicated in the application form. There are no over dues / statutory dues by me or the firm / company. No legal action has been taken against me / firm / company. I shall furnish all other information that may be required by Bank in connection with my application. The Information may also be exchanged by you with any agency you may deem fit you, your representative of any other agencies as authorized by you may at any time inspect / verify my / our assets, books of account etc. in our factory business premise as given above. You may take appropriate safeguards / action for recovery of bank’s dues including publication of defaulter’s name in website/ submission to RBI. I further agree that my loan shall be governed by the rules of State Bank of India as may be in force from time to time. Place Signature of Chief Promoter / Chief Executive Date

BUSINESS DETAILS

Year of commencement of business

State the profit / loss for the last 3 financial years :

YEAR I YEAR II YEAR III

State the sales turnover for the last 3 financial years :

YEAR I YEAR II YEAR III

Tell about your factory premises :

Owned Rented leased for over 5 years

Tell us about your product

How do you plant to produce it?

Does the product require special know-how? If so, are you in possession of the know-how?

Whether your line of activity falls under priority sector ?

What are the raw materials required?

How do you plan to produce them? Are they available on credit? If so what are the terms of credit?

How do you plan to ensure the quality of your product? Any special steps being taken?

What about utilities like water, power etc. Please describe the requirements and how are they met?

Whether you need skilled labour? Please describe your plans for sourcing and employing skilled

labour?

Any special reason to locate your business at the present location? Is there any advantage in

procuring the raw materials locally? Is the local market enough to sell the finished product of your

firm? Any other advantage?

Manufacturing process in brief

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________

What is the level of competition for the product ? How do you plan to meet the competition?

Give the total outside liabilities for the last 3 years and your tangible networth.

PARAMETER YEAR I YEAR II YEAR III

Total outside liabilities

Tangible networth (including

loans from friends and relatives)

TOL / TNW

What is the quality of your receivables?

How many months’ sales do they represent?

Can you give an age profile of your receivables?

Age Amount Percentage to total

Less than 1 months old

1 to 2 months old

2 to 3 months old

More than 3 months old

Total percentage 100%

What is the quality of your finished goods inventory?

Are they sold against order as and when produced?

Are they kept in stock for long?

How many months’ sales do they represent?

What will be the time period between procurement of raw materials to realization of sale proceeds? Can you cut short the cycle without increasing your liability?

Give the details of cost and the means of finance for your project

Item Why do you need to purchase the item?

What is the basis of your cost

Cost of the item

How do you proposed to acquire/ procure the item

Land

Building

Machinery

Others

Total cost

What are the means of finance?

Means Amount Give details*

From own sources

Bank loan

Friends and relatives

Others

Total

*Bank should be satisfied about your ability to bring in the margin.

Has the project been vetted by the consultancy cell of the Bank or consultants of repute? Give

details

______________________________________________________________________________

________________________________________________________

What is the repayment period you are looking for the term loan? What will be the annual cash accruals? What will be your liability towards payment of installments and interest on term loan in a year? Whether the cash accruals will be sufficient to take care of the repayment liability? Anything else you would like to tell about your business

What is the collateral you would be able to offer? GIVE DETAILS

Item Value Basis

TOTAL

Please tell us about your further plans : What is the level of sales you are projecting? Briefly

describe the basis for your projection

______________________________________________________________________________

______________________________________________________________________________

______________________________________________________

What is the level of receivables you are expecting in terms of months’ of sale?What is the level of finished goods inventory you are expecting to maintain in terms of months’ of sale? ______________________________________________________________________________

______________________________________________________________________________

______________________________________________________________________________

______________________________________________

I certify that all information furnished by me / us is true, correct and complete. I have no borrowing

arrangement for the company / firm with any bank except as indicated in the application form.

There are no overdues / dues owed by me or the firm/company. No legal action has been taken

against me / us firm / company. I shall furnish all other information that may be required by Bank in

connection with my application. The Information may also be exchanged by you with any agency

you deem fit. You, your representatives of any other agencies as authorized by you may at any

time inspect / verify my fixed assets, books of account etc. in our factory /business premises as

given above. You may take appropriate safeguards/action for recovery of bank’s dues including

publication of defaulters’ name in web site/submission to RBI. I further agree that my loan shall be

governed by the rules of State Bank of India as may be in force from time to time.

Place : _______________ For and on behalf of the company

Date : _______________ Signature of Chief Promoter / Chief Executive

CREDIT SCORING CRITERIA

Name of the Company/ Firm : Name of the Chief Promoter / Chief Executive : (In case of partnership concerns where the partners are having equal stake the personal profile of the active promoters as declded by the concern could be taken) 1. Personal Details : Sr. No.

Parameters Maximum

Marks

Marks Scored

Criteria Details of Documents

Verified 1. Age 5

4 3 1

18 to 24 25 to 49 50 to 59 60 to 65

2. No. of children 2 0

Up to 3 >3

3. Owning a house 5 0

Own Not owning a house

4. Academic qualification 4 3

1

Professional Graduate / P.G. Matric Below Matric

5. Experience in the line of trade

5 3 2

More than 5 years 2 to 5 years less than 2 years

6. Spouse details 1 0

Employed Homemaker

7. Assessed for income-tax 2 0

Assessed Not assessed

8. Deposit account with SBI (minimum deposit should be Rs. 10,000 in the period under review)

5 3

2

3 years and above 6 months to < 3 years < 6 months

9. Have life insurance policy 1 0

Yes No

Marks scored 30 Minimum score should be 15 marks

Business Score : 2 A. For existing units which have not so far availed any loan from the Bank. If takeover from another Bank, takeover norms, prescribed by the Bank are to be first evaluated and fulfilled. Sr. No.

Parameters Maximum

Marks

Marks Scored


Verified 1. Years in business 5 5

3 2

5 years & over 3 years to < 5 years 1 years to <3 years

2. Continuous net profits (before tax)

5 5 3 2

Last 3 years Last 2 years Last year

3. Sales show a rising trend 5 5 3

Last 3 years Last 2 years

4. Factory premises 3 3

0

Owned or over 5 year lease Rented

5. Know-how 2 0

2

Specialized know-how Common knowledge

6. Line of activity 1 1 0

Priority Sector Non priority Sector

7. Competition 4 4 3 2

Low Medium High

8. TOL/TNW (Quasi equity to be added to TNW and reduced from TOL)

5 5 3 2 1

2 & below >2 but upto 3 >3 but upto 4 >4 but <5

9a. Quality of receivables 5 5

3

2

Up to 3 months of sales >3 but up to 4 months of sales >4 months of sales

9b. Quality of finished goods inventory

5 5

3

2

Upto 1 month of sales >1 upto 2 months of sales >2 months of sales.

10. Repayment period (Not applicable for only working capital loans)

5 5 3 2

Upto 3 years >3 to 5 years > 5 years

11. Gross DSCR (not applicable for only working capital loans)

5 6 3 2

> 2 Between 1.5 tand 2 < 1.5

Marks Scored 50/40 Items 10 & 11 are not applicable for working capital loans alone. In that case the score should be

normalized for 50 (marks scored / 40) x50) Minimum Score should be 25.

2B. For Greenfield Ventures : Sr. No.

Parameters Maximum

Marks

Marks Scored


Verified 1. Branch is in the know of

business ( includes cases where the Project is appraised by consultants of repute)

10

0

Yes No

2. Manufacturing / Servicing / trading / process is well known to applicant to produce / service / trade the required quality of the product

5

0

Yes No

3. Location advantage 2 0

Yes No.

4. Availability of utilities including labour

2 0

Easy Ok

5. Firm’s capacity to sell the product at the price and quantity.

5

0

Good OK

6. Line of activity 1 0

Priority Sector Non Priority Sector

7. TOL / TNW (Quasi equity is to be added to TNW and reduced from TOL)

5 3 2 1

1 and below >1 upto 2 >2 up to 3 > 3

8a. Quality of receivables as per projections

5

3

2

Up to 3 months of sales More than 3 up to 4 months More than 4 months

8b. Quality of finished goods inventory as per projections

5 3 2

Up to 3 years Above 3 to 5 years Above 5 years

10. DSCR (not applicable for only working capital loans)

5 3 2

>2 1.5 to 2 <1.5

Marks Scored 50 / 40 Minimum Marks : 25 out of 50.

3. Collateral Conditions : Sr. No.

Parameters Maximum

Marks

Marks Scored


Verified 1. Equitable Mortgage of

Property : Value of property (If TDR or cash equivalent is offered as security multiply cash equivalent by 2 and add to the collateral value) / loan amount (%)

15 12 10 5 0

75% and over 50% to <75% 25% to <50% <25% Nil

2. Residential Property as part of 1

5 0

Yes No

Marks Scored 20 Minimum Marks are 10 (except in cases where Collateral should not be asked as per Bank’s

norms, the minimum mark will be Nil)

ASST GENERAL MANAGER/ CHIEF MANAGER: - FOR SANCTION APPRAISAL MEMORANDUM UNDER SME SMART SCORE

Branch: The proposal conforms to the extant instructions of the scheme. The scores awarded under credit scoring criteria are as under

SEGMENT : C&I / SSI / SBF SEGMENT MIN. SCORE MARKS SCORED

Personal Details 15/30 Business Details (or) Greenfield ventures

25/50

Collateral Conditions 10/20 Total Score 50/100

(To be eligible under the scheme, the unit should get a minimum score of 60% with a minimum of 50% under each sub-head) 1. PROPOSAL FOR I. Sanction of a. b. II. Approval for c. d. III. Confirmation of e. 1.1. Details of Credit limits Rs.in lakhs Facility Existing Limits Facility Proposed Limits CC(Hyp) CC(Hyp) SME Credit Plus SME Credit Plus TL TL LC/BG (As sub limit of CC(Hyp))

LC/BG(As sub limit of CC(Hyp))

Total limits Total limits

3.Name of the Borrower 4.Name of Proprietor /Partners/Directors

5.Address Factory Office

6.Constitution Proprietorship/Partnership/ Private Limited Company

ASST GENERAL MANAGER/ CHIEF MANAGER: - FOR SANCTION

APPRAISAL MEMORANDUM UNDER SME SMART SCORE Branch:

The proposal conforms to the extant instructions of the scheme. The scores awarded under credit scoring criteria are as under SEGMENT : C&I / SSI / SBF

SEGMENT MIN. SCORE MARKS SCORED Personal Details 15/30 Business Details (or) Greenfield ventures

25/50








7.Line of activity

8.Year of Incorporation 9.Banking with SBI since 10.IRAC Status 11.Details of Associate Concerns/Family Concerns and their Bankers Any NPA’s among associates?

12.Date of last sanction (not applicable for fresh exposures)

13. Position of the account as on (Rs in lakhs) Facility Limit M.V A.V D.P O/S Irregularity if any (Not applicable for new units) 14. Brief background & History :-( to be brief and in bullet points only) (Comments on management, products, tie-up arrangement if any, quality approvals/certifications etc) 15.Performance and financial indicators: Rs.in lakhs.

31 March

YR.BEFORE LAST

Audited

LAST YEAR

Audited

CURRENT YEAR

Estimates

FOLLOWING YEAR

Projections Domestic Sales Export Sales Net Sales Profit After Tax PAT/ Net Sales (%) Cash Accrual Paid Up Capital TNW TOL/TNW (times) Current Ratio

Comments on Financials ;( Brief bullet points only) 16.Term Loan: Project Details

Project Cost Rs. Bank Loan Recommended Rs. (As per assessment in annexure-III)

Debt /Equity 17. Working Capital Requirement: Working capital limit of Rs.------ has been assessed for the year --- and Rs.----has been assessed for the year -----, as per the Projected balance sheet method/traditional method as per the workings as on annexure-II. (After satisfactory review of the limits assessed for the first year, additional limits for the subsequent year shall be released. However documents for the higher of the limits to be obtained at the initial stage itself.) 18. Comments on conduct of Account: (covering irregularities, non-compliance, LC devolvement, BG invocations, etc.): Comments on Summations vis-à-vis sales

Period under review Credit summations Debit summations Gross Sales Opening Sundry Debtors Closing Debtors

Comments: 19. Whether (a) the name(s) of the Individual/Directors appear(s) in RBI’s list of defaulters/RBI’s list of willful defaulters & (b) the Individual/Directors name figures in ECGC’s caution list PARTICULARS DATE POSITION RBI Willful Defaulters list(Non-Suit Filed)Rs.25lacs and above

CIBIL List(Suit filed) Rs.25 lacs and above ECGC specific approval list 20. Comments on I&A and other audit reports, which have an impact on credit risk on the unit:, if any: Name of report Date of report Serious irregularities/

Adverse features remaining unattended

Comments in last I&A report & its present status

Company's audited Balance Sheet (Qualifications)

21. If the unit has scored less than 60% marks in any of the individual parameters in SME Smart Score, please comment critically on those parameters (even though the aggregate score may be more than 60%) 22. Recommendations; Recommended for sanction of Working Capital limit of Rs.

Term loan of Rs. Total limit -------------- On the terms and conditions as set out in annexure-IV. Signature Name Designation Date


Enclosure: Applicant’s application.& others Statement of Credit Score arrived as annexure -I.

Controlled by Signature Name Designation Date

Annexure-I CREDIT SCORING CRITERIA

Name of the Company / Firm : Name of the chief promoter / chief executive : (in case of partnership concerns, where the partners are having equal stake, the personal profile of the active promoter as decided by the concern could be taken) 1. Personal details : Sr. No.

Parameters Maximummarks

Marks Scored

Criteria Marks

1 Age 5 18 to 24 25 to 49 50 to 59 60 to 65

3 5 1 0

2 No.of children 2 Upto 3 > 3

2 0

3 Owning a house 5 Own Not owning house

5 0

4 Academic qualifications 4 Professional Graduate/PG Metric Below Metric

4 2 1 0

5 Experience in the line of trade 5 > 5 years 2 to 5 years < 2 years

5 3 0

6 Spouse details 1 Employed Homemaker

1 0

7 Assessed for income tax 2 Assessed Not assessed

2 0

8 Deposit account with SBI (min. deposit should be Rs.10,000/- in the period under review)

5 3 Yrs. & above 6 M to < 3 Yrs. < 6 M

5 2 0

9 Have life insurance policy 1 Yes No

1 0

MARKS SCORED

30

Minimum score should be 15 marks

2. Business Score : 2.A For existing units which have not so far availed any loan from the Bank. If takeover from another Bank, takeover norms, prescribed by the bank are to be first evaluated and fulfilled. Sr. No.


Marks Scored

Criteria Marks

1 Years in business 5 5 Years & over 3 Years to < 5 1 year to < 3

5 3 1

2 Continuous net profits (before tax)

5 Last 3 years Last 2 years Last year

5 3 1

3 Sales show a rising trend 5 Last 3 years Last 2 years

5 3

4 Factory premises 3 Owned or over 5 years of lease Rented

3 0

5 Know-how 2 Specialised Common

2 0

6 Line of activity 1 Priority Sector Non priority

1 0

7 Competition 4 Low Medium High

4 2 0

8 TOL/TNW (quasi equity to be added to TNW and reduced from TOL)

5 2 & Below > 2 but upto 3 > 3 but upto 4 > 4 but < 5

5 4 2 1

9 a Quality of receivables 5 Upto 3 months of sales > 3 but upto 4 months of sales > 4 months of sales

5 1 0

9 b Quality of finished goods inventory

5 Upto 1 month of sales > 1 but upto 2 months of sales > 2 months of sales

5 1 0

10 Repayment period (not applicable for only working capital loans)

5 Upto 3 years > 3 to 5 years > 5 years

5 3 0

11 Gross DSCR (not applicable for only working capital loans

5 > 2 1.5 To 2 < 1.5

5 2 0

MARKS SCORED

50

Items 10 & 11 are not applicable for working capital loans alone. In that case the score should be normalized for 50 (marks scored/40)*50 Minimum score should be 25 2B. For Greenfield ventures : Sr. No.


Marks Scored

Criteria Marks

1 Branch is in the know of business (includes cases where the project is appraised by consultants of repute)

10 Yes No

10 0

2 Manufacturing/servicing/trading process is well known to applicant to produce/service/trade the required quality and quantity of the product

5 Yes Mo

5 0

3 Location advantage 2 Yes No

2 0

4 Availability of utilities including labour

2 Easy Ok

2 0

5 Firm’s capacity to sell the product at the price and quantity

5 Good Ok

5 0


1 0

7 TOL/TNW (quasi equity to be added to TNW and reduced from TOL) Competition

5 1 and below > 1 upto 2 > 2 upto 3 > 3

5 4 3 0

8 a Quality of receivables as per projections

5 Upto 3 months of sales > 3 but upto 4 months of sales

5 1 0

> 4 months of sales

8 b Quality of finished goods inventory as per projections


5 1 0



5 3 0


5 > 2 1.5 to 2 < 1.5

5 2 0

MARKS SCORED

50 / 40

Minimum Marks : 25 out of 50 3. Collateral conditions: Sr. No.


Marks Scored

Criteria Marks

1 Equitable Mortgage of property : Value of property (if TDR or cash equivalent is offered as security multiply cash equivalent by 2 and add to the collateral value) / loan amount (%)

15 75% and over 50% to <75% 25% to <50% <25% NIL

15 10 5 3 0

2 Residential property as part of 1

5 Yes No

5 0

MARKS SCORED 20 Minimum Marks are 10 (except in cases where Collateral should not be asked as per Bank’s norms, where the minimum marks will be NIL)

Annexure-II Name of the Borrower: ASSESSMENT OF WORKING CAPITAL I. For SSI, SBF and Retail traders: Rs.in lakhs. 1.Projected Turnover Method (Nayak Committee Method)

Estimated Ist year

Projected 2nd Year

a. Estimated Sales for the Current year b. Working capital required (25% of ‘a’) Eligible Bank Finance (80% of ‘b’) Bank finance Required (A) 2.Assessment as per Traditional Method Estimated Purchases in the current Year Estimated Average Raw Material Holding at any time (Calculated at cost of Purchases)

Estimated Average holding of Stock in process and Finished goods at any one time (calculated at cost of Production)

Estimated Average Receivable outstanding at any one time Total Requirement Less estimated average credit enjoyed on purchases Less estimated average credit enjoyed on purchases Less Other Sources like unsecured loans, plough back of profits etc

Bank Finance Required (B) Working Capital Assessed/recommended A or B above which ever is higher i.e II.For Self Employed and Professionals 50% of Gross annual income as declared in their Income Tax return.

III.Comments on Production aspects: (covering location advantages, availability of raw material and other utilities like water, power, fuel, labour etc. IV.Brief Comments on Marketing Aspects:

V. i) Assessment of EPC limits: Rs.in lakhs

ii) Assessment of EBD limits: Rs.in lakhs

Sr. No Particulars Estimated Ist year

Projected2nd year

1 Estimated Exports 2

Exports on Usance bill basis

3 Usance period 4

Lead Time

5 No. of cycles in a year 6 Eligible EBD Facility 7 Limit requested by the unit 8 Limit recommended

iii) Brief Comments on the above limits: VI. Assessment of Non fund based limits: i)Assessment of LC limits: Rs.in lakhs

Annual Raw Material purchases

Monthly Raw Material purchases Monthly Raw Material purchases through LC’s @ % (A) Average Usance Period (B) Lead Time and transit period (C) Total of ‘B’ and ‘C’ (D) LC limits required (= A X D) Recommended LC Limits


Projected 2nd year

1 Estimated Exports 2 Exports - at cost 3 Lead time and usance period

(includes order period / manufacturing period etc.)

4 No. Of Cycles in a year 5 EPC requirement per cycle 6 Less:- Margin on EPC – % 7 Eligible Limit 8 EPC limit recommended

Assessment of BG limits:

Rs.in lakhs Outstanding BGs as on Add: BG’s required during the next 12 months, as under 1.Earnest Money deposit 2.Security Deposit 3.Advance Payment BG 4.Retention Money Deposit/Maintenance Guarantee 5. Guarantees on account of sales tax, commercial tax and excise duty payments

Less: Estimated maturity/cancellation of BG’s during the period . Requirements of BG’s Recommended BG limit

Brief comments on requirements of above limits:

Annexure-III Name of the Borrower: Assessment of Term Loan: 1.Project Details



Land &Buildings Plant& Machinery WC margin Contingencies Total project cost

Means of finance Own funds Borrowings from friends and relatives

Bank finance others

Total means of finance

Debt /Equity :

3. Details of capital expenditure i.e land and factory building as well as machinery proposed to purchase: 4. Remarks on cost of project & means of finance (in brief) 5. Term Loan Assessment: Rs.in lakhs Years 1

(Act) 2 (E)

3 (E)

4 (E)

5 (E)

6 (E)


DSCR Average DSCR 6. Project implementation schedule: 7. Comments on Commercial viability:




of trips per day


Annexure-IV Name of the Borrower: TERMS AND CONDITIONS

1. Facility Limit 2. Security Primary WC:

TL: Collateral

Personal Guarantee (Indicate Net worth of Guarantors with date of compilation of opinion reports)

3. Interest (Linked to SBAR)

CC(HYP): TL:

4. Margin(%) Stocks: Receivables: Cover Period: BG/LC (cash Margins):

Term loan:

4. Repayment CC(HYP):- Repayable on demand. TL:

5. Validity of Sanction, Review/Renewal

Sanction valid for two years. A review shall be made after 12 months.

6. Inspection Quarterly 7. Stock Statement To be submitted monthly. 7. Insurance 8. Processing fee 9. EM Charges 10. Commitment Charges CC(HYP):-

Term Loan:- 11. Penal Interest 12. Documents As per SME Documentation 13. Other Stipulations, if

any.

FORMAT FOR ANNUAL REVIEW /RENEWAL OF LOANS SANCTIONED UNDER SME SMART SCORE PROPOSAL FOR REVIEW OF WC AND TERM LOAN SANCTIONED UNDER ‘SME SMART SCORE' SCHEME. 1.Name of the unit 2 Constitution Proprietorship/Partnership/Private limited Company 3.Name of the Proprietor/partners/ /directors


5.Nature of activity 6. a).Date of Last Sanction/review b) Sanction is Valid up to


any CC TL LC/BG

8.Present Position of Accounts as on date (Rs. In lakhs)

Comments on Conduct of above accounts:

9.Financial parameters (Rs. In lakhs)

Year Earlier

Estimated (previous year)

Actual achieved (previous year)

Estimated (Current year)

Net sales PBT Cash Accrual

TNW TOL/TNW C R

Comments( to be commented on actuals for deviations over estimates, if any)

9. Conduct of WC a/c (Rs. In lakhs)

Annual Turn over estimated Rs. Annual Credit Summations in the account Rs. Value of the account: Rs. (Interest/Exchange/commission Booked) Cross selling Products Booked : (Give the name of the products booked) Retail Business Booked Number of retail loans and amount booked for the promoters/employees :

10. Whether earlier sanction terms complied with.

11. Whether irregularities observed in I&A report rectified.? If not present status

12.Other Comments ( from Risk Angle) (On associates, conduct of accounts, Competition, quality of products, CIBIL report for individuals or corporate as applicable etc., and other relevant risks. Bullet points only)

14. Recommendations The Conduct of WC loan and Term loan has been reviewed and found satisfactory. The Credit Score for renewal of limits is as per annexure –I, is satisfactory. 1.Recommended for continuation of Working Capital limit of Rs. 2. Recommended for release of additional working capital limit of Rs. as per the original sanction on (give date) for the projected year----- On the above terms and conditions as already set out in the original sanction dated— Signature Name Designation Date



Credit Scoring Model for Renewal proposals Sr. No.


Marks Scored

Criteria Marks

1 Actual sales/projected sales 10 90% & above 70% to < 90% 50% to < 70% Below 50%

10 8 5 2

2 PBT/NS (%) 10 Increasing Flat Decreasing

10 5 1

3 Change in TOL/TNW during the year

5 Decreasing and upto 3 Decreasing but above 3 Increasing but upto 3 Increasing but above 3

5

3

3

0 4 Overall conduct of the

account and working of the unit

15 Excellent Good OK

15 10 5

5 Credit summations in the account during the preceding 12 months

10 90% & above 70 – 89% 50 – 69% < 50% (% of sales)

10 7 5

NIL MARKS SCORED 50

Minimum Marks should be 30/50 Veto Power if the account is unsatisfactorily conducted

i) cheques are frequently returned ii) debit balance (outstanding) is over the drawing power for over 160 days in the year

iii) non-compliance of critical terms and conditions

(frequent devolvement of LCs and invocation of guarantees/non receipt of stock statements etc. have not been mentioned as they would be reflected in ii)

Appraised by Approved by Name Date

SME CREDIT PLUS 1. Target Group

: Existing SSI borrowers with excellent track record and

have been standard assets for the past two consecutive years and also new borrowers.

2. Eligibility

: Units with CRA Rating of SB4 & above or the equivalent under the new CRA and / or standard assets for the past two years

3. Purpose

: For meeting bulk orders repairs to machinery Tax payments Any other contingency

4. Type of facilities : Clean Cash Credit


: 20% of aggregate working capital limit subject to a maximum of Rs.25lacs

6. Margin : Not applicable

7. Rate of Interest : At the rates applicable for working capital limits


- Collateral

: Nil Existing collateral to be extended to cover this limit and additional collateral to be obtained only if considered necessary by the sanctioning authority

9. Processing fees : As applicable to SSI units

10. Repayment

: Each amount of withdrawal should be repaid within 2 months. There should be a gap of 15 days between the last date of repayment of outstandings and the next withdrawal.

11. Documentation : As applicable to clean cash credit.

12. Special features : No cheque book to be issued

Product Highlights: SME Credit Plus is a product designed to meet sudden and unforeseen expenditure of SSI units

with excellent track record. Eligible units can be sanctioned an additional working capital limit of

upto 20% of the aggregate fund based working capital limit by way of clean cash credit.

Additionally, the product can be extended to new borrowers as a marketing tool to attract good

borrowal units of other banks to our books.

Marketing Tips:

• This product can be effectively used to attract borrowers of other banks with a good track record and potential for growth to our books.

• Borrowers of other Banks, especially those whose genuine needs are not being adequately met by their banks are the most likely target group for marketing of this product.

• The local District Industries Centre, Industry associations, trade bodies are some of the sources for providing information regarding "good units in the area".

Back to Index

STANDBY LINE OF CREDIT FOR WORKING CAPITAL REQUIREMENTS

1. Target Group

: Existing SSI & C&I units and exporting units.

2 Eligibility

: Rated SB3 or its equivalent under the new CRA and

above. Selectively for SB4 (or its equivalent under new CRA)rated units

3 Purpose

: To meet genuine contingency needs arising out of bunching of orders, delay in shipment / realisation of receivables, sudden increase in raw material costs, mis -match in cash flows.


: Working capital limit by way of cash credit, EPC, bills discounting, against stocks, receivables, etc., as required.


: Fund based limits and Non-fund based limits 15% of working capital facilities subject to a maximum of Rs.5 crs. The facility 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.

6 Margin

: As per the terms of the original limits

7 Rate of Interest

: One per cent higher than that applicable to the Cash Credit limit. Discretion to waive the additional cost rests with the controller.


- Collateral

: Drawing power should be available to cover the SLC(WC) limit Available collateral should be extended to cover SLC limit also.

9 Processing fees

NIL

10 Repayment

Generally, within 2 months at any one instance and can be availed any number of times in a calendar year.

11 Documentation

: Documents should be obtained for the aggregate limits including the SLC (WC)

In the case of consortium advances, the SLC(WC) should be covered by a separate document and charge registered with the ROC wherever applicable.

12 Special features

: The SLC(WC) should not be used for special type of facilities such as EPCG,DPG, etc..

The sanction should be by the authority having financial powers for sanction of the aggregate limits including those under SLC(WC)

SLC(WC) should be calculated separately for peak and non peak limits

SLC(WC) limits, being contingent in nature will be out of the consortium arrangement

Sanction for the SLC(WC) should be obtained at the time of sanction of regular limits for all regular borrowers and who are likely to avail this facility during the year.

SLC(WC) cannot be extended to units who have utilized SME Credit Plus facility

The release of the facility after due sanction should be approved by the branch head on each occasion

Products Highlights: This product has been introduced at the instance of RBI for enabling the exporters to avail

additional WC funds at short notice in times of urgent need. The maximum amount which can be

given is 15% of FB limits and NFB limits subject to a maximum of Rs.5crs While a similar product

namely, SME Credit plus is available for a contingent limit of Rs.25lacs only, this Stand by Line of

Credit can be given upto Rs.5crores.

Marketing tips:

This product can be shown as an additional feature while marketing for SSI / C&I / export business.

Our existing units can be given this facility at the time of renewal itself, so that at the time of need the unit can avail without loss of time.

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GENERAL PURPOSE TERM LOAN FOR SSI SECTOR

1. Target Group

: Existing SSI borrowers with CRA rating of SB3 and above

2 Eligibility

: Should have earned profits in each of the preceding 3 years

The unit should not have a history of default The unit should be CRA rated unit with a minimum

limit of Rs.25 lacs (as far as possible).

3 Purpose

: Any general commercial purpose such as shoring up NWC, substitution of high cost debt, R&D, quality upgradation for ISO certification, etc.


: Term Loan


: Maximum of Rs.50lacs

6 Margin

: Minimum of 25% for acquisition of assets, i.e., quantum of loan should be restricted to 75% of project cost.

7 Rate of Interest

: As per CRA rating


- Collateral

: Extension of Hypothecation charge over current and fixed assets

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

9 Processing fees As applicable to SSI units

10 Repayment

In monthly /quarterly instalments normally in 3 years, extendable upto 5 years in deserving cases.

11 Documentation

: Specially designed document on the lines of the Composite Loan Agreement

12 Special features

: Term Loan to be disbursed in line with the approved purpose

Loans , deposits, from friends and relatives can be treated as quasi-equity to arrive at TNW subject to undertaking from them that the amounts will not be withdrawn during the currency of the loan.

Product Highlights: This product is similar to the Corporate Loan which has recently been extended for non- corporate

borrowers. Our existing SB3 rated units which require funds for any purpose connected with the

running of the unit can be offered this product provided the unit has been making profits for the last

3 years and is brought under CRA rating exercise. The maximum amount of loan which can be

sanctioned is Rs.50lacs.repayable in 3 to 5 years.

Marketing Tips: The existing SB3 rated SSI customers are the target group. Generally, the SSI units tend to borrow

from private financiers to tide over their immediate liquidity problems as availing this amount from

the Bank ,even if eligible, would be time consuming. Hence, it would be in the interest of the Bank

to advise such borrowers to replace their high cost debt from other sources with this loan at

considerably lower cost to ensure continued profits for the unit

FAQs

Can both Corporate Loan and this loan be given to the same unit? No. Depending on which product is more suitable, any one of these loans can be given.

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OPEN TERM LOAN Manufacturing Sector

1. Target Group

: SMEs in Manufacturing sector

2. Eligibility

: Existing or new corporate or non – corporate customers in SME – manufacturing sector with credit ratings of SB3/SBTL3 and above. Units with SB4/SBTL4 can be considered selectively with administrative approval of CGM( Circle) Non customers also can be considered subject o fulfillment of take – over norms and after due obtention of opinion reports from their existing bankers. Current Ratio and TOL /TNW should at acceptable levelsDSCR should be at least 1.75

3. Purpose

: Any genuine commercial purpose such as expansion / modernisation substitution of high cost debt of other banks / FIs Upgradation of technology Energy conservation systems Acquisition of software, hardware, consumables,

tools, jigs, fixtures, etc. ISO and other such certifications Visits abroad for acquiring technology, finalizing

deals, participation in fairs, market promotion, etc. 4. Type of facilities

:

Term Loans 5.

Quantum of Finance

: Maximum Rs.250lacs For amounts more than this, prior administrative approval from the CGM(Circle) is to be obtained and the sanction would have to be accorded by CCC – 1

6. Margin

: 10% uniformly

7. Rate of Interest

: As per the credit rating of the borrower linked to SBAR on floating rate basis


- Collateral

: Hypothecation of the machinery proposed to be purchased out of the Term loan

Extension of charge over current assets, fixed Assets and other existing collateral

Obtention of additional collateral should be explored In all cases, personal guarantees of the promoters of

the unit have to be invariably obtained. In case of corporate borrowers, pledge of promoters equity should be explored

9. Processing fees

As applicable to the unit for term loans

10. Repayment

: Generally not to exceed 3 years. May be extended upto 5 years selectively if considered necessary.

11. Documentation

: Usual Term Loan Agreement for the TL limit to be obtained upfront and supported by exchange of suitable letters at the time of each disbursement


This is a unique facility of a pre-sanctioned term loan

limit with the option of multiple disbursements for multiple purposes to be sanctioned along with the working capital limits.

This facility is to be made available at our erstwhile commercial network branches, industrial estate branches, SSI branches, which are headed by CMs and such other branches identified for the purpose by the CGM(Circle)/GM(Network)

Other branches may get such loans processed and sanctioned by SECC/CPCs irrespective of the amount.

Borrowers can utilize the facility on multiple occasions as per their needs.

Each disbursal can be made by the branch manger without reference to the sanctioning authority

The repayment for each term loan is to be calculated by reference to the date of the first drawdown

Each disbursal should be supported by an exchange of letters between the borrower and the Bank.

The sanction is valid for 12 months only from the date of sanction and any unutilized portion will lapse after 12 months.

Each term loan has to be treated as an individual TL for accounting purposes.

The discretionary powers are as applicable to term loans.

There is no need to refer these proposals to the Consultancy cells for techno-economic viability study.

Product Highlights: This is a unique facility, the first of its kind aimed at our existing units, both our customers, especially those who are rated high as well as those banking elsewhere to facilitate them 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 product.

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OPEN TERM LOAN For Services Sector

13. Target Group

: Hotels, Hospitals, Educational Institutions & Fleet

Operators 14. Eligibility

: Existing or new corporate or non – corporate customers in SME – manufacturing sector with credit ratings of SB3/SBTL3 AND ABOVE. Units with SB4/SBTL4 can be considered selectively with administrative approval of CGM( Circle) Non customers also can be considered subject o fulfillment of take – over norms and after due obtention of opinion reports from their existing bankers. Current Ratio and TOL /TNW should at acceptable levelsDSCR should be at least 1.75

15. Purpose

: Any genuine commercial purpose such as expansion / modernisation substitution of high cost debt of other banks / FIs Upgradation of technology Energy conservation systems Acquisition of software, hardware, consumables,

tools, jigs, fixtures, etc. ISO and other such certifications Visits abroad for acquiring technology, finalizing

deals, participation in fairs, market promotion, etc. 16. Type of facilities

:

Term Loans 17.

Quantum of Finance

: Maximum Rs.100lacs For amounts more than this, prior administrative approval fro the CGM(Circle) is to be obtained and the sanction would have to be accorded by CCC – 1

18. Margin

: 10% uniformly

19. Rate of Interest

: As per the credit rating of the borrower linked to SBAR on floating rate basis


- Collateral

: Hypothecation of the machinery proposed to be purchased out of the Term loan

Extension of charge over current assets, fixed Assets and other existing collateral

Obtention of additional collateral should be explored In all cases, personal guarantees of the promoters of

the unit have to be invariably obtained. In case of corporate borrowers, pledge of promoters equity should be explored

21. Processing fees

As applicable to the unit for term loans

22. Repayment

: Generally not to exceed 3 years. May be extended upto 5 years selectively if considered necessary.

23. Documentation

: Usual Term Loan Agreement for the TL limit to be obtained upfront and supported by exchange of suitable letters at the time of each disbursement


This is a unique facility of a pre-sanctioned term loan

limit with the option of multiple disbursements for multiple purposes to be sanctioned along with the working capital limits.

This facility is to be made available at our erstwhile commercial network branches, industrial estate branches, SSI branches, which are headed by CMs and such other branches identified for the purpose by the CGM(Circle)/GM(Network)

Other branches may get such loans processed and sanctioned by SECC/CPCs irrespective of the amount.

Borrowers can utilize the facility on multiple occasions as per their needs.

Each disbursal can be made by the branch manger without reference to the sanctioning authority

The repayment for each term loan is to be calculated by reference to the date of the first drawdown

Each disbursal should be supported by an exchange of letters between the borrower and the Bank.

The sanction is valid for 12 months only from the date of sanction and any unutilized portion will lapse after 12 months.

Each term loan has to be treated as an individual TL for accounting purposes.

The discretionary powers are as applicable to term loans as usual.

There is no need to refer these proposals to the Consultancy cells for techno-economic viability study.

Product Highlights: This is a unique facility, the first of its kind aimed at our existing units, both our customers, especially those who are rated high as well as those banking elsewhere to facilitate them 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 product.

Back to Index

RICE MILLS PLUS

25. Target Group

: Rice Mills with proven track record as well as new units set up by our existing borrowers

26. Eligibility

: a) Profit making existing units with CRA rating of SB4 and above as per the simplified CRA system for Rice Mills

b) Take-over of units conforming to takeover norms is also permitted

c) In the case of new units set up by our existing borrowers, the regular CRA model for SSI / C&I units has to used and should be at least SB3 rated to be eligible for finance under Rice Mills Plus. Also, 50% of the partners should be our existing borrowers and management control should vest with them.

27. Purpose

: a) Acquisition of machinery/factory building for modernisation

b) Working capital needs


: Term Loan, Cash Credit, outward bill limit, LCs , BGs, SME Credit Plus


: No upper Ceiling. Nayak Committee norms are applicable: minimum of 20% of projected annual turnover. A higher limit can be considered selectively on projected balance sheet method. Peak and non peak limits can be fixed depending on actual need. Separate limits for other activities:- Wherever the borrowers are engaged in other activities, separate limits may be considered based on viability and other aspects of assessment and appraisal.

30. Margin

: Term Loan – 15-25% Working Capital – Stocks :- Paddy &Rice - 15%-20% Brokens - 20% Bran - 30% Gunny bags - 40% Book debts- 40%(cover period – max. 60 days) Margin for book debts can be lowered upto 25% where adequate collateral is available.


: CRA Rating ( NEW) Interest rates

SB1& 2

0.25% below SBAR

SB 3,4 & 5

0.50% above SBAR

SB 6 &7

1.00% above SBAR

SB 8 & 9

1.50% above SBAR .

For Term Loans

SBTL 1&2

0.25% above SBAR

SBTL 3,4 & 5

1.00% above SBAR

SBTL 6& 7

1.50% above SBAR

SBTL 8 &9

2.00% above SBAR


- Collateral

: Hypothecation/pledge of assets created out of Bank finance For loans upto Rs.5lacs-NIL. Others-Tangible security of borrower or guarantor valued at not less than 75% of loan amount. For SB1, SB2 rated units the value of collateral should be not less than 50% of the loan amount.(Lr.No. SME/AB/ 490 dt. 25.09.2007)

33. Processing fees

Rs.115/- per 1 lac Upfront fee for term loans 0.60% of the loan amount Issuance of drafts/ BCs/ cheque collection – 50% of applicable charges.

34. Repayment

: TL – 5 to 7 years excluding the gestation period of maximum 12 months

35. Documentation

: As applicable to SME units

Product Highlights: So far, Rice Mills have been extended credit only on very stringent terms and even SB1 & SB2 rated companies could not be financed adequately due to the stiff terms of assessment. Keeping this constraint in view, this product has been introduced in the SSI segment with a simplified credit rating model which includes weightage for achievement for projected sales and loyalty to the Bank factor. A specially designed appraisal format has been designed for the product. This product can be extended at all branches handling CAAs and also those identified for the purpose by the Circle Management Committee. As regards assessment, for limits upto Rs.5 crores, Nayak Committee norms for working capital have to be adopted. New units can also be financed and the regular CRA model applicable to SSI/C&I units has to used for arriving at the CRA rating. Marketing Tips:

• Simplified assessment method for arriving at WC & TL components. • SME Credit Plus can be granted which is repayable in 6 months. • Non fund based facilities can be extended especially for exporters. • Outward Bill limit upto 60 days cover can be considered in specific cases. • A traditional banking product with a new look and very attractive terms of finance.

FAQS Can the loans under this scheme be handled at rural branches?

Yes, provided the Circle Management Committee authorizes the branch for handling this business.

What is the rating pattern under the simplified model designed for this product? The rating model for this product is as under:-

Credit rating score Rating

Over 90% SB1 Between 75 to 90 % SB2 Between 60 to 75 % SB3 Between 50 to 60 % SB4

Back to Index

RICE MILLS PLUS - CREDIT RATING SYSTEM S.No. Parameters Score 1. Current Ratio >=1.15

>=1.13 <1.15 >=1.10 <1.13 >=1.05 <1.10 <1.05

1512

850

2. TOL/TNW Ratio <=2.50 >=2.50 <3.50 >=3.50 <5.00 >=5.00 <6.00 >6.01

108642

3. Gross average DSCR for all loans inclusive of the proposed term loan

>=2 <2.00 >=1.75 <1.75 >=1.50 <1.50

10752

4. Interest and instalment obligation of cash credit and term loan(s)

Timely repayment on due date Delayed payment upto 30 days Over 30 days

1050

5. Total sales : Inventory + sundry debtors >= 4 times >=3times <4 times >=2 times <3 times <2 times

10842

6. Submission of stock statements, balance sheets, renewal data

Timely submission One month delay Irregular in submission

531

7. Achievement of projected sales >=85% < 85% >=50% <50% >=25% <25%

5430

8. Supported by tangible collateral security including 2nd charge on fixed assets

Security coverage to total loan >=100% >=50% <100% >=25% <50% <=25%

10842

9. Operational experience in cash credit Liability not exceeding DP / Limit Liability exceeded limit Occasionally.

Excess drawal adjusted in time. Liability exceeded frequently and

adjusted with some delay.

10

5

310. Compliance with terms and conditions of

sanction Complied with promptly Complied with delay Not complied with

530

11. Age of relationship with the Bank (Banking with us since….)

Above 5 years >3 years <5 years > 1year <3 years

542

12. Age of the firm / Company# Above 5 years >3 years <5 years >1 year <3 years

542

Remarks a) Gross average DSCR for all loans (Sr. No. 3) will not be applicable in case the unit is not seeking term assistance. In such cases, the total score need to be normalized to 100.

b) The higher age of the firm / company will reduce the chances of default. Consistence downfall in performance inclusive of profitability parameters should fetch a firm

/ company a score of 2 irrespective of the age of the firm/company.

Annexure-II Commercial Advances IRAC SSI Segment : Rice Mills Credit Rating Unit : Date of last renewal 1. Proposal for :

(Please tick) Renewal of working capital limits at the existing level Renewal of working capital limits with enhancement Sanction of working Capital limits – New Sanctioning Authority (CCC-I / CCC-II MECC / SECC / DGM / AGM / CM / BM) 2. Total indebtedness :

(Rs. Lakhs)

Nature of Facility Existing Proposed

Fund Based

Cash Credit (MT) Cash Credit (Hypothecation) Cash Credit (Outward Bills – Clean) Medium Term Loan Total (A)

Non Fund Based

Letters of credit Bank Guarantees Total (B) Grand Total (A+B) 3. Borrower a) Name : b) Factory at : c) Constitution : Partnership d) Date of Partnership deed : e) Name & Worth of Partners :

S.No. Name Worth in Rs. Lakhs

1.

2.

3.

4.

5.

6.

7.

8.

9.

10. f) Products manufactured / processed :

g) Date of commencement of :

Commercial production

h) Dealing with SBI since :

i) Whether the firm has power to borrow : Yes / No.

j) Names of authorized signatories

(If applicant is other than a partnership, please alter the columns suitably) 4. Brief History :

5. Production facilities : As per Annexure – I 6. Key Financial Indicators :

Actuals Estimates Projections 31.3. 31.3 31.3. 31.3

Sales Rice - levy (FCI)

Quantity (Quintals)

Value

Rice - levy (APSCSC)

Quantity (Quintals)

Value

Rice - Non Levy

Quantity (Quintals)

Value

Brokens

Quantity (Quintals)

Value

Bran

Quantity (Quintals)

Value

Husk

PURCHASES – Quality – wise

Quantity (Quintals)

Value

Gross Profit

Net Profit

Tangible Net Worth

Current Assets

Current Liabilities

Net Working Capital

Current Ratio

TOL / TNW

Current Year Sales from 1st April to 30th September

7. Comments on the financial position / indicators : Sales Net Profit

Annex - I Production facilities : Owned Leased

Capacity of Rice Mills (Tons per hours)

Number of shifts per day

Total No. of working days

Total Annual Capacity

For the Leased Capacities :

Name of the Owner : Date of Lease deed :

Valid up to :

Whether the lease rights are : Yes / No. Assignable

Clauses detrimental to the : Bank’s Interest if any

II. Storage Capacity :

Milling Hall : Open Yard :

Godown : Owned : Rented : Total Storage capacity :

For Rented Godowns Whether rent letter obtained : Yes / No.

Assessed Quantity of III. Production (Projected for the current year) Levy Non Levy Total

Paddy proposed to be milled (Quintals)

Production (in Quintals)

Rice

Brokens

Bran

Husk

Total

IV. Sales (Projected for the Current Year)

Levy Non Levy Total

Rice

Brokens

Bran

Husk

Total

Monthly Turnover (in Rs. Lacs) for the last twelve monthas) Month 1 2 3 4 5 6 7 8 9 10 11 12

Turnover

V. Utilities : Required Available

Power

Transco

Generator

Water

Labour

VI. Licenses / Statutory Dues / Litigation SSI Registration Number

Position regarding Statutory dues Assessed upto Assessed Value

Income Tax

Sales Tax

Any Pending suits against the unit by the Government Departments / Corporations

Yes / No. If “Yes”, furnish the particulars on a separate sheet)

Whether all the required licenses are obtained and kept on Record


I II III Unit’s Name

Date of Sanction

Limit (Rs. Lakhs)

D.P. (Rs. Lakhs)

O.S. (Rs. Lakhs)

Associate Concerns if any and the position of accounts

IRAC Status

VII. Commercial Data

Before Last Year Last Year Current Year (Proj.)

Levy Quota allotted* (Quintals)

Levy sales (Quintals)

Levy Sales (Value)

Non-Levy sales (including brokens, bran and husk etc.) value

Maximum Drawings at any one time

Interest Income*

Other Income

* Expected, If order is not yet received (Enclose copy of the present order issue by the competent authority. If the present one is not yet received, enclose previous year’s order) Overall Risk Level : Score out of 100 Credit Rating Awarded : Asst. / Deputy Manager (Appraisor) Branch / Chief Manager (Assessor)

DAL MILLS PLUS

1. Target Group

: Dal mills

2. Eligibility

: Profit making existing units with CRA rating of SB4 and above

3. Purpose

: Acquisition of machinery / factory buildingfor modernization

Working Capital needs


: Term Loan / Cash Credit / LCs / BGs / SME Credit Plus


: TL – no upper ceiling , CC – As per Nayak Committee norms for limit upto Rs.5crores

6. Margin : Cash credit – 25%

7. Rate of Interest

: Finer rates of interest are being offered for Dal Mills Plus as per circulars issued from time to time


- Collateral

: - Hypothecation of assets created out of Bank’s finance - Upto Rs.5 lacs – NIL

- Above Rs.5lacs – EM of property / tangible security for not less than 75% of the loan amount

9. Processing fees

As per SSI norms

10. Repayment

: TL to be repaid in 5 to 7 years excluding a maximum moratorium period of 12 months

11. Documentation : As applicable to SSI units


: A simplified CRA rating system has been designed

to suit the special characteristics of Dal Mills Loan has to be sanctioned to deserving units within

15 days of receipt of completed applications A special appraisal form has been designed to

assess the credit needs of Dal mills

Product Highlights: This is a product to help in proper assessment of the credit needs of the Dal mills which although a traditional activity has assumed a more complex format in view of the liberalization of import and modernization of the processing of various kinds of pulses. The simplified CRA model will help in taking into account the market practices and is customer friendly which will help in not only retaining our existing customers and meeting their credit and other banking needs more comprehensively but also in attracting new connections to our books subject to fulfillment of take over norms. Marketing Tips:

Contact local Dal Mill Owners Association to obtain a list of all dal mills in the area Arrange a meeting of all dal mill owners to explain this exclusive product designed for them by

the Bank.

FAQs Can combined dal and flour mills be financed under this product?

Yes provided the books are maintained to reflect the dals and the flour items Separately

DAL MILLS PLUS - CREDIT RATING SYSTEM S.No. Parameters Score 1. Current Ratio >=1.15

>=1.13 <1.15 >=1.10 <1.13 >=1.05 <1.10 <1.05

1512

850

2. TOL/TNW Ratio <=2.50 >=2.50 <3.50 >=3.50 <5.00 >=5.00 <6.00 >6.01

108642

3. Gross average DSCR for all loans inclusive of the proposed term loan

>=2 <2.00 >=1.75 <1.75 >=1.50 <1.50

10752

4. Interest and instalment obligation of cash credit and term loan(s)

Timely repayment on due date Delayed payment upto 30 days Over 30 days

1050

5. Total sales : Inventory + sundry debtors >= 4 times >=3times <4 times >=2 times <3 times

10842

Back to Index

>2 times 6. Submission of stock statements, balance

sheets, renewal data Timely submission One month delay Irregular in submission

531

7. Achievement of projected sales >=85% < 75% >=50% <50% >=25% <25%

5430

8. Supported by tangible collateral security including 2nd change on fixed assets

Security coverage to total loan >=100% >=50% <100% >=25% <50% <=25%

10842

9. Operational experience in cash credit Liability not exceeding DP / Limit Liability exceeded limit Occasionally.

Excess drawal adjusted in time. Liability exceeded frequently and

adjusted with some delay.

10

5

310. Compliance with terms and conditions of

sanction Complied with promptly Complied with delay Not complied with

530

11. Age of relationship with the Bank (Banking with us since….)

Above 5 years >3 years <5 years > 1year <3 years

542

12. Age of the firm / Company# Above 5 years >3 years <5 years >1 year <3 years

542

#Remarks a )Gross average DSCR for all loans (Sr. No. 3) will not be applicable in case the unit is not seeking term assistance. In such cases, the total score need to be normalized to 100.

b) The higher age of the firm / company will reduce the chances of default. Consistent downfall in performance inclusive of profitability parameters should fetch a firm / company a score of 2 irrespective of the age of the firm/company.

Commercial Advances IRAC SSI Segment : Rice Mills Credit Rating Unit : Date of last renewal 1. Proposal for :

(Please tick) Renewal of working capital limits at the existing level Renewal of working capital limits with enhancement Sanction of working Capital limits – New Sanctioning Authority (CCC-I / CCC-II MECC / SECC / DGM / AGM / CM / BM) 2. Total indebtedness :

(Rs. Lakhs)

Nature of Facility Existing Proposed

Fund Based

Cash Credit (MT) Cash Credit (Hypothecation) Cash Credit (Outward Bills – Clean)

Medium Term Loan Total (A)

Non Fund Based

Letters of credit Bank Guarantees Total (B) Grand Total (A+B) 3. Borrower a) Name : b) Factory at : c) Constitution : Partnership d) Date of Partnership deed : e) Name & Worth of Partners :

S.No. Name Worth in Rs. Lakhs

1.

2.

3.

4.

5.

6.

7.

8.

9.

10. f) Products manufactured / processed :

g) Date of commencement of :

Commercial production

h) Dealing with SBI since :

i) Whether the firm has power to borrow : Yes / No.

j) Names of authorized signatories

(If applicant is other than a partnership, please alter the columns suitably) 4. Brief History :

5. Production facilities : As per Annexure – I 6. Key Financial Indicators :

Actuals Estimates Projections 31.3. 31.3 31.3. 31.3

Sales Rice - levy (FCI)

Quantity (Quintals)

Value

Rice - levy (APSCSC)

Quantity (Quintals)

Value

Rice - Non Levy

Quantity (Quintals)

Value

Brokens

Quantity (Quintals)

Value

Bran

Quantity (Quintals)

Value

Husk

PURCHASES – Quality – wise

Quantity (Quantals)

Value

Gross Profit

Net Profit

Tangible Net Worth

Current Assets

Current Liabilities

Net Working Capital

Current Ratio

TOL / TNW

Current Year Sales from 1st April to 30th September

7. Comments on the financial position / indicators : Sales Net Profit

Annex - I Production facilities : Owned Leased

Capacity of Rice Mills (Tons per hours)

Number of shifts per day

Total No. of working days

Total Annual Capacity

For the Leased Capacities :

Name of the Owner : Date of Lease deed :

Valid up to :

Whether the lease rights : Yes / No. Assignable

Clauses detrimental to the : Bank’s Interest if any

II. Storage Capacity :

Milling Hall : Open Yard :

Godown : Owned : Rented : Total Storage capacity :

For Rented Godowns Whether rent letter obtained : Yes / No.

Assessed Quantity of III. Production (Projected for the current year) Levy Non Levy Total

Paddy proposed to be milled (Quintals)

Production (in Quintals)

Rice

Brokens

Bran

Husk

Total

IV. Sales (Projected for the Current Year)

Levy Non Levy Total

Rice

Brokens

Bran

Husk

Total

Monthly Turnover (in Rs. Lacs) for the last twelve monthas) Month 1 2 3 4 5 6 7 8 9 10 11 12

Turnover

V. Utilities : Required Available

Power

Transco

Generator

Water

Labour

VI. Licenses / Statutory Dues / Litigation SSI Registration Number

Position regarding Statutory dues Assessed upto Assessed Value

Income Tax

Sales Tax

Any Pending suits against the unit by the Government Departments / Corporations


Whether all the required licenses are obtained and kept on Record


I II III Unit’s Name

Date of Sanction

Associate Concerns if any and the position of accounts

Limit (Rs. Lakhs)

D.P. (Rs. Lakhs)

O.S. (Rs. Lakhs)

IRAC Status

VII. Commercial Data

Before Last Year Last Year Current Year (Proj.)

Levy Quota allotted* (Quintals)

Levy sales (Quintals)

Levy Sales (Value)

Non-Levy sales (including brokens, bran and husk etc.) value

Maximum Drawings at any one time

Interest Income*

Other Income

* Expected, If order is not yet received (Enclose copy of the present order issue by the competent authority. If the present one is not yet received, enclose previous year’s order) Overall Risk Level : Score out of 100 Credit Rating Awarded : Asst. / Deputy Manager (Appraiser) Branch / Chief Manager (Assessor)

ARTHIAS PLUS 1. Target Group

: Commission agents (Arthias) of agricultural produce who are registered with the Market Committee and possess a license issued by the District Food and Supplies Department to sell the produce of the farmers.

2 Eligibility

: Commission agents enjoying good reputation and who have been in this business for at least the past 3 years and holding a valid license to carry on his activity.

Commission agents having receivables from farmers only.

3 Purpose

: To finance commission agents against receivables from farmers.


: Cash Credit ( Hypothecation of book debts not more than 6 months old)


: Maximum Rs.25lacs

6 Margin

: 40%

7 Rate of Interest

: AGL/SBF Segment 0.5% below SBAR for limits below Rs.2lacs At SBAR for limits of Rs 2lacs and upto Rs.10lacs Under C&I segment (Above Rs.10lacs & upto Rs.25lacs) 1.10% to 2.50% above SBAR based on CRA Rating


- Collateral

: Hypothecation of receivables and movable assets if any EM of non-agricultural property, either residential or commercial belonging to the borrower or guarantor for 1.5 times the loan amount.

9 Processing fees As applicable to the segment

10 Repayment

To be liquidated within 6 months and to be renewed annually

11 Documentation


12 Special features

: A statement of eligible receivables should be obtained from the borrower and verified with books of account or audited financial statements.

At the end of every cropping and marketing season, the borrower should liquidate the outstandings fully

The limit should thereafter be subject to review/ renewal as per trade advance norms.

Product Highlights: Commission agents have established themselves as a strong link between the farmers and the markets for their produce. These commission agents provide finance for the farmers for their cultivation needs and act as agents to sell their crop at harvest time. They charge commission of 1 to 2% which is recovered from the buyer of the produce. These agents are registered with market committees. The records of produce brought by the farmer and auctioned in the market yard are maintained by the marketing board. Our product "Arthias Plus" provides finance to these commission agents otherwise known as "arthias" against their receivables of not more than 6 months old, from farmers only. The credit is extended by way of cash credit (hypothecation of book debts and assets) upto a maximum amount of Rs.25 lacs. This is to be treated as indirect finance to agriculture. Marketing Tips:

• The marketing committees will be able to provide details of registered "arthias" (commission agents) who should be contacted personally to sell this product.

This is a valuable tool to increase bank credit to rural areas and will greatly assist in marketing of agricultural produce.

FAQs

Can unregistered Arthias be financed? No. Only those commission agents who are registered with the market committees are eligible for finance under this scheme.

What about those States where this system of registration is not in vogue?

In such cases, this scheme is not applicable. Instead, any other scheme such

as advance against mortgage of immovable property can be considered on merits.

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WORKING CAPITAL FINANCE TO T&S SECTOR

1. Target Group

: .Retail and wholesale traders in agricultural and industrial commodities, Dealers in consumer durables, consumer goods, vehicles, showrooms, etc.

2 Eligibility

: Units in C&I segment established with profits at least in the preceding 3 years with CRA rating of SB4 and above

3 Purpose

: Working capital requirements


: Cash credit limit with a sub-limit for LCs if required


: 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.

6 Margin

: 25%

7 Rate of Interest

: As per credit rating. A concession of 0.50% may be offered for units with at least 75% collateral coverage


- Collateral

: Hypothecation of stocks and receivables Collateral security of at least 50% is to be prescribed out of which at least 33% of the limit should be by way of mortgage of immovable property. The stipulation regarding immovable property can be reduced to 25% in exceptional cases with the administrative approval of CCC-II.

9 Processing fees As applicable to C&I units

10 Repayment

On demand

11 Documentation


12 Special features

: 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.

Product highlights: As a measure to improve credit flow to the Trade & Services sector, a financial model based on the annual turnover rather than on inventory build up has been designed . As per this model , a credit limit equal to 15 % of the projected annual turnover can be fixed subject to the projection being not more than 25% increase in the actual turnover of the immediately preceding year. A margin of 25 % has to be maintained and the drawing power has to be regulated based on the stock statements. Marketing tips:

Traders, both wholesale and retail, are the target group. The rates of interest charged by the Bank are much lower than the rates at which most

of the traders avail finance from the private financiers or from the suppliers. The collateral to be taken is only 33% if the applicant is an established profit making

enterprise with CRA rating of SB4. Interest concessions can be offered if the collateral offered is more than 75% of the loan

amount.

FAQs

Can the borrower be granted higher limits than what is arrived at under the Turnover method?

Yes. In such cases the assessment has to be made under the Projected Balance Sheet method.

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FLEXI LOAN FOR TRADE AND SERVICES

1. Target Group

: 1. Wholesale and retail traders in agricultural or industrial commodities

2. Distributors and stockists of industrial products , consumer durables, consumables , etc.

3. Export / import intermediaries 4. Tourism related facilities-Hotels/resorts/travel

agents, etc. 5. Large transport operators of passenger

buses/fleet owners 6. Construction, transport & supply contractors, Hospitals, nursing homes, clinical labs, etc.,

2 Eligibility

: Borrowers with CRA rating of SB4 or SBTL4 and above only are eligible and should have earned cash profits in each of the preceding 3 years and net profit in the last year. Only established traders with proven record of profitability are eligible.

3 Purpose

: The loan can be considered for any general purpose such as

Holding of stocks/book-debts Acquisition of land and building Construction/renovation of office/showroom Purchase of vehicles, equipment, machinery Shoring up of net working capital


: Term loan


: Rs.5 lacs to 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. Minimum DSCR to be 1.50.CRA –Trade model to be used for limits above Rs.25 lacs.

6 Margin

: Minimum 25% of the expenditure

Rate of Interest

: Linked to CRA rating for limits above Rs. 25 lacs. For others, SBF rates are applicable.


- Collateral

: Hypothecation of current assets and EM of land and building if acquired from Bank finance 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

9. Processing fees As applicable to C&I units 10 Repayment In 3 to 5 years This can be extended upto 8 years in

deserving cases. 11 Documentation


12 Special features

: RBI guidelines on selective credit control will apply

Audited Balance Sheet to be obtained as per extant instructions

Exposures under Multiple Banking Arrangement may be explored selectively to facilitate take-over of quality assets.

Product Highlights: This is a term loan facility repayable in 3 to 5 years extendable upto 8 years, designed taking into account the special requirements of the trade and services sector. The eligible activities for this product are:

1) Wholesale and retail traders & distributors of agricultural & industrial commodities

2) Departmental stores and supermarkets 3) Export/ import intermediaries 4) Large transport operators of passenger buses and goods. 5) Construction, transport, supply, public utility / maintenance contractors 6) Tourism related facilities – Hotel / travel agencies 7) Hospitals, nursing homes, clinical labs etc.

Borrowers with CRA rating of SB4 or SBTL4 under CRA-Trade model are eligible for this product. Gross DSCR should be minimum 1.50 and TOL/TNW not beyond 4and total long terms liabilities to equity should not be more than 2:1 and current ratio should be at least 1. The maximum amount of TL which can be granted under this scheme is Rs.100 lacs. Marketing Tips:

Almost anyone involved in trade or service can be offered this facility which can

be used for any general purpose connected with their line of activity. All small and medium sizes enterprise in the area of operation can be

targeted for this product.

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SBI SHOPPE

1. Target Group

: Present and prospective owners of shops/ offices/ show-rooms/ training centres/ service centres/ garages/ offices for Chartered Accountants / Consultants

2. Eligibility

: Individuals /firms / partnerships / trusts / franchisees

3. Purpose

: Purchase of new / old shops/ establishments / offices / dealer's showroom etc.

Repairs / renovation / modernisation Furniture / fixtures / electrical fittings /accessories

for the shop/office etc.


: Term Loan


: Maximum of Rs.20 lacs

6. Margin

: 25% and 40% for purchase of old premises

7. Rate of Interest

: As applicable to SIB TLs below Rs.25 lacs


- Collateral

: Hyp. / pledge / mortgage / assignment of the assets purchased out of Bank's finance

9. Processing fees As applicable to SSI / SBF units 10. Repayment

: 3 to 7 years excluding a maximum moratorium period of 6 months

11. Documentation



: No Objection Certificate and No Lien Letter to be invariably obtained from the owner-lessor of the property in the case of rented property

Repayment period should be well within the lease period in the case of rented property.

Opening of SB / Current Account is mandatory DSCR to be minimum 1.75 Property on hire purchase/ lease from govt.

departments /PSUs should not be financed

Product Highlights: This is a unique product aimed at the trade sector for purchase /modernisation/ expansion / upgradation of shops dealer/show rooms, franchisees, repair centres / Garages / buildings for professionals etc. upto Rs.20 lacs by way of a term loan repayable on easy terms.

Marketing Tips:

• Shopping complexes / malls are ready source of business for this product. • Traditional shopping / business areas in towns and cities can be a source for

marketing this product for renovation and facelifting. • Takeover of similar loans extended by other banks can be considered subject to

fulfilment of take over terms.

FAQs

Can this loan be given if the shop premises is owned by a close relative of the owner of the shop who has applied for the loan? Yes. Often the premises is in the name of the father or the wife of the applicant. The loan can be given in such circumstances also subject to obtention of usual no objection/ no lien letter from the owner of the property.

Can this loan be extended to travel agents for setting up an office?

Yes. This facility can be extended to those engaged in services such as travel agencies, caterers, hotels, eateries, beauty salons, etc.

Back to Index

SBI SHOPPE PLUS

13. Target Group

: Present and prospective owners of shops/ offices/ show-rooms/ training centres/ service centres/ garages/ offices for Chartered Accountants / Consultants

14. Eligibility

: Individuals over 21 years of age with a steady source of income and possessing necessary approvals for construction of proposed structure

15. Purpose

: This product is a combination of Housing Loan and SBI Shoppe. The applicant is expected to first apply for a housing loan and on completion of the house he becomes eligible for a term loan on the lines of SBI Shoppe for setting up an office / shop for purchase of furniture, equipment , etc.


: 2 Term Loans


: 1st term loan as per housing loan scheme and second term loan for 75% of cost of setting up office / shop

18. Margin

: 1st term loan - as per housing loan 2nd term loan - as per SBI Shoppe – 25%


: 1st term loan - as per housing loan 2nd term loan – as per SBI Shoppe less 0.25% if eligible under SBI Credit Khazana


- Collateral

: Hypothecation of the assets purchased out of Bank's finance and EM of land building for 2nd and 1st term loans respectively Extension of EM for 2nd term loan

21. Processing fees As per housing loan for 1st term loan As applicable to SSI / SBF units for 2nd term loan

22. Repayment

: As per housing loan for 1st term loan As applicable to SBI Shoppe for 2nd term loan

23. Documentation

: As per housing loan for 1st term loan As applicable to SBI Shoppe for 2nd term loan


: This is a combination of housing loan scheme and SBI Shoppe for the use of professionals such as Chartered Accountants lawyers, consultants,

Product Highlights: This is a unique product aimed at the services sector for purchase of office – cum - residence for professionals etc. Credit can extended by way of a term loans repayable on easy terms.

Marketing Tips:

The local chapter of the Institute of Chartered Accountants of India would provide a list of chartered accountants who are in practice. They could be contacted individually or by holding a seminar or meeting for them to explain the features of this unique scheme which also has substantial tax benefits.

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EXPRESS VENDOR DISCOUNT SCHEME

1. Target Group

: Vendors of reputed Corporates and industry majors

2 Eligibility

: COCC I will accord administrative clearance for selection of industry majors(IMs) whose vendors become eligible for this facility

3 Purpose

: To finance specific receivables against goods / services supplied to the identified industry major


: EVDS limit for 1 year renewable on case to case basis


: The aggregate of the EVDS limits for an IM will be given by the COCC I. The individual limits for the vendors will be given by CAG The period of credit will be stipulated by the COCC I .

6 Margin

: Generally nil

7 Rate of Interest

: Will be approved by the COCC I


- Collateral

: Generally unsecured.

9 Processing fees As applicable to C&I

10 Repayment

IM has to pay on due date of each receivable but Bank has recourse to vendor in case of default by the IM

11 Documentation

: Specially designed by the Law department

12 Special features

: The advance is self – liquidating in nature As part of supply chain financing the Bank is

providing relief to the industry majors in better management of their funds.

The products have low risk profile

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PRE –SHIPMENT EXPRESS VENDOR SCHEME

1. Target Group

: Vendors of reputed Corporates and industry majors

2 Eligibility

: COCC I will accord administrative clearance for selection of industry majors(IMs) whose vendors become eligible for this facility

3 Purpose

: To finance Working capital needs against purchase orders from Industry Majors


: EVDS limit for 1 year renewable on case to case basis


: The aggregate of the EVDS limits for an IM will be given by the COCC I. The individual limits for the vendors will be given by CAG The period of credit will be stipulated by the COCC I .

6 Margin

: Generally nil

7 Rate of Interest

: Will be approved by the COCC I


- Collateral

: Generally unsecured.

9 Processing fees As applicable to C&I

10 Repayment

IM has to pay on due date of each receivable but Bank has recourse to vendor in case of default by the IM

11 Documentation

: Specially designed by the Law department

12 Special features

: The advance is self – liquidating in nature As part of supply chain financing tne Bank is

providing relief to the industry majors in better management of their funds.

The products have low risk profile

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TRADERS EASY LOAN (TEL)

1. Target Group

: 7. Wholesale and retail traders in agricultural or industrial commodities

8. Professionals and self – employed 9. Small business enterprises 10. Commission agents engaged in purchase and sale

of food grains and other commodities 11. Cotton ginning mills that purchase cotton and sell it

after ginning. 12. Oil Mills 13. Rice Mills (Rs.5 lacs to Rs.500lacs) Cold storage units upto Rs.1 crore.

2 Eligibility

: Existing customers with a satisfactory track record. New connections including take - over can be considered subject to takeover norms.

3 Purpose

: The loan can be considered for acquiring fixed assets fro the business and/or build up of inventory /current assets.


: Cash Credit / Demand Loan/ Term Loan Working capital finance can be availed either as CC or DL or partly CC and partly DL


: Rs.0.25 lac to Rs.500 lacs. For traders and wholesalers, for professionals and self employed The credit needs will be assessed for the purpose stated and the loan component shall not exceed 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. In the case of rice mills, the quantum of finance can be assessed based on pucca records of the unit and can be fixed anything between 20% to 40% of the projected annual turnover. For existing borrowers who have been sanctioned other limits the Loan can be sanctioned subject to :-

i) the existing loan accounts have conducted satisfactorily for the last three years;

ii) the eligible amount ie., the outstandings in the existing accounts and the proposed loan should be within 65% of realizable value of the property mortgaged to the Bank without resorting to revaluation of the property.

6 Margin

: 35% 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

Rate of Interest

: CRA assessment is dispensed with for this product. CC / DL – 0.25% below SBAR – Minimum of10.50%

Term Loan - 0.25% above SBAR - Minimum 11.00% ZCC has been delegated with powers to reduce the interest rates by 0.50% based on value of collateral, value of connection and the level of competition.


- Collateral

: - Hypothecation of stocks and receivables - EM of land and building or tangible security by way of TDRs, NSCs, etc. Open land whether inside or outside the municipal limits should not be accepted as collateral. In exceptional cases, on business considerations, approval may be sought from SMEBU, Corporate Centre for accepting open land as security.

9. Processing fees Working Capital limits (FB + NFB) For loans upto Rs.2lacs – Rs.250/- For loans above Rs.2lacs – Rs.250/- per lac or part thereof, - Maximum Rs.10lacs For Term Loans above Rs.2lacs Upfront fee of 1% of the loan amount to be recovered

10 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

11 Documentation

: As applicable to working capital advances/ term loan for trade and services sector

12 Special features

CC limit is valid for one year and has to be renewed every year

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.

Stock statements waived for TL and DL Inspection should be at quarterly intervals In case the loan is by way of CC, the credit

summations should be at least 200% of the CC limit.

TL/DL should be with monthly repayment schedule and has to be reviewed annually.

Product Highlights: This is a product which is very user friendly in as much as the process of assessment of the limit and delivery has been simplified and the need for periodical stock statements has been reduced to the minimum. Marketing Tips. This is suitable for a large number of traders in the medium range who are now unable to access bank finance due to financial compliances which are not always prevalent in the particular trading activity. The rate of interest is very competitive. The loan can be restored after 6 months in case the conduct of the loan has been regular.

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APPLICATION FORM FOR MORTGAGE LOAN (TRADERS EASY LOAN)

TRADE & SERVICES SECTOR 1. Name of the Unit : 2. Address along with : Telephone No. / Fax No./ e-mail if any 3. Activity : Trading in ……………………….. Services : ……………………….. 4. Date of Commencement of business 5. Constitution : Proprietorship Partnership (Please tick ( )) Corporate Any other 6. Details of Proprietor / Partners / Directors etc.

Name Age Qualification Means*

• Opinion Report on the Bank’s prescribed format should be prepared by branch officials. 7. Present credit facility enjoyed, if any :

Name of the Bank & Branch Facility* Limit Outstanding

• In case no credit facility enjoyed and only a current account is maintained please advise specifically. 8. Associate / Sister concerns, if any :

Name of the Unit Name of Partners /

Proprietor Banking with

9. Credit Facilities Required : Fund Based : Term Loan : Non-fund based Letter of Credit : Bank Guarantee : 10. Details of Security Offered : Primary : Collateral : (i) Immovable Property

Description of Property

Name of the owner* Market Value

(ii) Liquid Securities :

Description Name of the

Owner* Face Value When Acquired Present

Value

• If owner is other than the proprietor / partner of the firm (i.e. guarantor), details of the guarantor viz. Name,

Age, Residential Address and Phone No. etc. should be given :

Name of the Guarantor & Address

Age Qualification Means

11. Key Financial Parameters : (for three years)

As on 31.3……. As on 31.3……. As on 31.3…….

(i) Sales (ii) Net Profit (iii) Depreciation (iv) Cash Profit (v) Tangible Net Worth

I / We declare that the information given in the application form are true, correct and complete

and that they shall form the basis of any kind of facility State Bank of India may decide to give

under the SBI Trader’s Easy Loan Scheme. I / We confirm that I/We are not defaulters of any

Bank. I / We also confirm that I / We have / had no insolvency proceedings against me/us nor

have I / we ever been adjudicated insolvent. I / We undertake to abide by the Rules and

Regulations of State Bank of India in respect of SBI Trader’s Easy Loan Scheme.

Signature of Borrower

Date :

Place :

List of Documents to be attached :

1. Copy of collateral security being offered. 2. Latest copy of income-tax return / Assessment order etc. 3. Statement of account from the existing banker for the last 6 months. 4. Copies of relevant license, documents pertaining to ownership / tenancy / lease agreement etc., in respect

of premises where activity will be carried out.

FINANCE TO RESTAURANTS

Particulars Details

Target Group Owners of

� Restaurants

� Fast food chains

Eligibility � Individuals (proprietorships)

� Partnership firms

� Corporates

� Trusts (with borrowing powers)

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

Nature of facility � Term loan or overdraft.

Tenure of Loan � Repayment period of up to 7 years when land and building cost

included in loan, otherwise 5 years.

Quantum of

finance

Investment in the Restaurant for the aforementioned purposes less

margin / promoters contribution which ever is lower.

Security

� Primary

� Collateral

Hypothecation / Pledge of the assets financed by the Bank

� 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

Margin 25%

Insurance All the assets financed by the Bank and the collateral security is to be fully

insured as per extant instructions.

The interest rates on the scheme, for new restaurants and takeovers from

other Banks and financial institutions will be applicable as per the table

below, related to the score obtained by an application in the rating through

the credit evaluation matrix.

New cases

Score Rate of interest

> 75 SBAR (10.25%)

Between 65 and 75 SBAR + 1% (11.25%)

Between 50 and 65 SBAR + 2% (12.25%)

< 50 Not eligible

Takeover cases

Score Rate of interest

> 75 SBAR (10.25%)

Between 60 and 75 SBAR + 1% (11.25%)

< 60 Not eligible

Rate of interest

Current SBAR – 10.25% Inspection Monthly by the Field Officer and quarterly by the Divisional Manager

/Branch Manager as per extant instructions for trade advances.

Discretionary

powers

� In cases of loan of more than Rs.25 lacs for a new restaurant, the

authority one level higher than the sanctioning authority will have the

power to reduce the interest rate by up to a maximum of 1.00% based

on competition.

� Similarly, in takeover cases, of loans more than Rs.25 lacs the

authority one level higher than the sanctioning authority will have the

power to reduce the interest rate by up to a maximum of 1.00% based

on competition.

Back to Index

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CREDIT EVALUATION GRID FOR NEW RESTAURANTS

Category (weight) Factors

A B C

Location (20%)

Novelty (10%)

• Accessibility • Purchasing power of population • Competitive intensity • Novelty value and sustainability over long

term

10 5 0 5 2 0 5 2 0 10 5 0

Owner (20%) • Restaurant industry experience • Proportion of equity

10 5 0

10 5 0

Collateral (20%) • Loan to collateral ratio 20 10 0

Repayment capability (20%)

• Debt coverage Brand image 10 5 0

20 10 0

DETAILED CRITERIA FOR PARAMETERS IN EVALUATION GRID (1/3)

Category Condition Points

Location

Brand Image 10%

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• Accessibility* • Easily accessible / located on ground floor along main road 5 • Requires effort to access (far from population, inside a 2

building, commercial complex etc.) 0

• Difficult to access / located in interior or side lane

• Purchasing power of target segment

• Competitive intensity

• Affordable for target segment on normal occasions 5 • Affordable for target segment only on special occasions 2 • Beyond the purchasing power of target segment 0 • Low – Few restaurants for target segment 5 • Medium – Limited number of restaurants for target segment 2 • High – Large number of restaurants for target segment 0

Novelty

• Novelty value and sustainability over long term

• Novel concept that is sustainable over long term 10 • Concept novel but can be easily copied 5

• ‘Me too’ – no novelty in the concept 0

* Restaurants with novelty value/brand and easy accessibility can attract customer from all across the city. Me too restaurants will mainly attract customers from nearby localities and location on main road is a great advantage



Owner

• Restaurant industry experience

(as owner or key person)

• >= 3 years 10 • >= 1 years 5 • < 1 years 0

• Proportion of personal equity

• Debt/equity <= 1 10 • Debt/equity <= 1.5 5

• Debt/equity > 1.5 0

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Collateral

• Loan to collateral ratio

• >= 50% 20

• >= 25% 10

• < 25% and >10%* 0

Repayment capability • Debt service

coverage (compare sales estimate with sales of similar restaurants in region)

• >= 2 20 • >= 1.5 10 • < 1.5 0

Brand

• Brand image

• Reputed chain of restaurants in region 10 • At least one well known restaurant 5 • Unknown 0

* Minimum collateral is 10% below which proposal will be rejected

CREDIT EVALUATION GRID FOR RESTAURANTS – TAKEOVER CASES Score

Category (weight) Factors

A B C

Location (10%) • Accessibility • Competitive intensity

5 2 0 5 2 0

Owner (20%) • Restaurant industry experience • Proportion of equity

10 5 0 10 5 0

Collateral (20%) • Loan to collateral ratio 20 10 0

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Repayment

capability (10%)

Track record (20%)

• Debt coverage • Track record of payment of loans

10 5 0 20 0

Profitability of operations (10%)

• Profitability 10 5 0

DETAILED CRITERIA FOR PARAMETERS IN EVALUATION GRID – TAKEOVER CASES (1/3)


Location

• Accessibility* • Easily accessible / located on ground floor along main road 5 • Requires effort to access (far from population, inside a 2

building, commercial complex etc.) 0

• Difficult to access / located in interior or side lane

• Competitive intensity

Profitability of operations

• Low – Few restaurants for target segment 5 • Medium – Limited number of restaurants for target segment 2 • High – Large number of restaurants for target segment

0

• Profitability** • Positive profit 10

• Loss making 0

* Restaurants with novelty value/brand and easy accessibility can attract customer from all across the city. Me too restaurants will mainly attract customers from nearby localities and location on main road is a great advantage

** If restaurant has been in existence for < 1 year projections based on available sales figures may be used to assess profitability 6

DETAILED CRITERIA FOR PARAMETERS IN EVALUATION GRID – TAKEOVER CASES (2/3)


Owner

• Restaurant industry experience (as owner or key person)

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• >= 3 years 10 • >= 1 years 5

• < 1 years 0

• Proportion of personal equity • Debt/equity <= 1 10

• Debt/equity <= 1.5 5

• Debt/equity > 1.5 0 DETAILED CRITERIA FOR PARAMETERS IN EVALUATION GRID – TAKEOVER CASES (3/3) Category Condition Points

Collateral

• Loan to collateral ratio

• >= 50% 20

• >= 25% 10

• < 25% and >10%* 0

Repayment capability • Debt service

coverage (compare sales estimate with sales of similar restaurants in region)

• >= 2 10 • >= 1.5 5 • < 1.5 0

Track record of repayment

• Term loan repayment

history

• Satisfactory track record of repayment of term loans 30

obligation

• Default on repayment of term loan obligation 0

* Minimum collateral is 10% below which proposal will be rejected

Application cum Interview form

State Bank of

India Branch

Application cum interview form for trade and services

(Restaurants)

1. Name of the Unit 2. Address of the Unit

Phone No. Fax No.

Premises owned / rented

3 Address of Reg. Office in case of Corporates

Premises owned / rented

4 Trade / Services in 5 Year of commencement of business 6 Experience in the line of activity 7 Constitution 8 Details of reconstitution in the past three

9 Details of Proprietor / Partners / Directors Name & Qualificatio n

Age PAN ResidentialAddress

Ph no / Mobile

Net Worth *

10. * Opinion report on the bank’s prescribed format should be prepared.

11 Details of existing banking arrangements Name of the Bank / Branch

Facility Limit Outstanding Banking since

12 Details of Associate / Sister / Identical firms: Name of the unit

Name(s) of pro/ partners

Banking with Limit Outstandings

13 Details of registration under Shops

& Establishments Act / Sales tax Act

14 Position regarding Statutory assessment under IT / Sales tax / Any other Year upto which assessment completed

15 Muncipal / or Local Authoritiespermissions / Licences for running eating houses –

16. Credit facilities required

Fund based Limit required Non fund based Limit required Cash Credit (Hyp.) Letter of Credit Term loan) Bank guarantees Total Total

For term loans – Details of assets to be acquired (pl. enclose detailed list if Description Details of the

supplier Cost Time schedule for

completion Need for the proposed expenditure

Cost Amount Means Amount Land & Building Own funds Equipment i) Interiors

Decoration ii) Furniture /

Fixtures iii) Air conditioning

plant iv) Kitchen

equipment

a) North Indian Cuisine

b) South Indian Cuisine

c) Specific Cuisine d) Chinese e) Multi cuisine

Other loans (specify source)

Other assets Bank loan Total Total

17. Security Offered A Stock (Please give brief details of

stocks)

B Mortgage of immovable properties (Please furnish details of properties offered, in whose names they stand, nature of mortagge, estimated market value, priori charges if any)

C Life Insurance Policies, shares Debentures etc (give details)

D Guarantee (please indicate Guarantor ,

Place Signature of Applicants

Date

BUSINESS INFORMATION

1. State whether franchisee

2. Details of suppliers/ principals

3. Seasonality of activity (specific peak & off-peak periods)

5. Terms of Purchase/procurement % of Credit purchases to total purchases %Period of credit enjoyed Months Average level of sundrycreditors

Rs.

Estimated value of remittances to suppliers by DD/TT pa: 6. Requirement of stocking

Average stock holding Rs. Availability of storagefacilities/address thereof

Rented/owned

Level of competition i. Whether a specialty Restaurant or General one Any other

special features like volume sales/catering etc. ii. How many similar Restaurants are located in the area, say within 500 mts.

iii. How many restaurants are running successfully in the neighborhood

iv. Any history of failures of restaurant in the

neighborhood in the last 3 years.

7. Marketing arrangements

Major Buyers/consumers with long term arrangement for supply to offices.� Catering arrangements.

8.Major competitors & their advantages

9. Competitive advantage of the unit.

10. Terms of sales % of Credit sales to total sales

%

Period of credit given Months

Average receivables level Rs. % Credit Card sales total sales – (present/projected) 11. Performance Parameters Past/projected Past three years Projections 31-3.. 31-3.. 31-3.. 31-3..

Sales/income Net Profit Depreciation Cash Accrual Tangible Net

Worth

TOL/TNW Details of Security offered

(i) Immovable property

Description of property

Name of the Owner

Value of the property

Basis of Valuation

(ii) Liquid securities

Description Name of the owner

Face Value

When Acquired

Present Value

Details of Guarantor where applicable

Name of the Guarantor &Address

Age Qualific ation

Net worth

Banking With

I/We declare that the information given in the applicationform are true, correct and complete and that they shall form the basis of any kind of facility State Bank of India may decide to extend to me/us. I/We shall furnish all other information that may be required by Bank in connection with my application. The i nformation may also be exchanged by you with any agency you may deem fit. You may take appropriate safe guards/action for recovery of bank dues including publication of defaulters names in website/submission to RBI. I/We confirm that I/We have no borrowing arrangements for the unit with any bank except those indicated in the application. I/We confirm that I/We are not defaulters of any Bank/any financial Institution. I/We also confirm that there are no overdues/statutory dues owed by me/us and that I/We have/had no insolvency proceedings against me/us nor have I/We ever been adjudicated insolvent. I/We undertake to abide by the Rules and Regulations of State Bank of India in respect of the facilities being extended to me/us.

Signature of Borrower Date : Place

: List of documents to be attached 1. Partnership deed in original (to be returned) and a copy thereof 2. Memorandum & Articles of Association with

certificate of Incorporation in original (to be returned) and copies thereof

3. Copies of relevant license, documents pertaining to ownership/tenancy/lease agreement in respect of premises where activity will be carried out/service or trade related agreements etc.

4. Latest copy of income-tax return/ sales tax Assessment order etc.

5. Statement of account from the existing banker for last 6 months.

6. Copy of the Title deeds relating to collateral security being offered.

7. Photocopies of PAN card of partners/Directors wherever available

8. Copies of balance sheets for the past three years (audited wherever applicable)

9. Statements of personal assets and liabilities of Proprietor/Partners/Directors/Guarantors

10. Photographs of Proprietor / Partners / Directors/ Guarantors

l

Appraisal form

Name of the Unit / borrower:

Segment : Sector: Priority / non priority

Assessment of Working Capital / Term Loan

1. Performance & Profitability:

(Rs. in 000s) Past Project

Ed

31.03…. 31.03 …

Years Current Yr

Next Yr (pro) 31.03….

31.03 ….

31.03… 31.03…

a)Sales / income

b) Other Income

Credit score wherever applicable : 2. Working Capital Required:

Estimated average stock holding at any one : RsEstimated average receivable outstanding : Rsat any one time

----------------------

Less Estimated average credit enjoyed on purchases : Rs. ---------------------

Working capital required (1) : Rs. ---------------------

3. Sources from which required working capital would be met: Net Working Capital in business (NWC) : RsBank Finance Recommended : Rs. Other sources : Rs.

------------------- (2) Rs. (A)

=========== OR

… % of Annual Turnover : Rs. (B) Working Capital assessed /recommended A or B above whichever is more ie., : Rs.

* Assessed Working capital @ ….% PAT : Rs. Stand by line of credit recommended @ …% of above : Rs.

Concessions in service charged proposed if any : And justifications therefor

Term loan :

Details of fixed Assets

Cost price / estimate (incl. Taxes)

Own funds Bank finance

Land Building Others Total

Comments on Debt / Equity:

Comments on DSCR (in brief):

Analysis based on Risk matrix

Brief comments on limits recommended

In case of renewals comment on conduct of account, credit summations, timely submission of stock / financial statements, return of cheques issued / cheques purchased etc should be incorporated.

Terms and conditions of sanction

a. SECURITY:

Facility Primary Collateral Guarantee

WDV Name MV NW Valuation dated As on

Description of collateral security : Deviation from existing security (if any)

b. MARGINS : (FOR EACH FACILITY AS APPLICABLE)

Cash Credit: Existing Proposed Stocks Receivables (Cover – Letter of Credit BG Term Loan

c) RATE OF INTEREST:

Facility Pricing d) REPAYMENT SCHEDULE:

e) INSURANCE f) SUBMISSION OF STOCK STATEMENTS

g) INSPECTION h) PROCESSING FEE i) UPFRONT FEE j) CONCESSIONS IN SERVICE CHARGES Appraised by Assessed by Sanctioned by

Signature

Name

Designatio

n Date:

State Bank of India Branch

ANALYSIS OF BALANCE SHEETS

(Rs. in 000’s)

Liabilities 20 / 20 / 20 /

State Bank of India Other Banks Sundry Creditors Expenses Loans Other Liabilities Total Current liabilities (A)

Term Loans Others Total Deferred Liabilities (B)

Capital & Surplus ©

Total liabilities (A+B+C)

Assets 20 / 20 / 20 /

Cash Investments Stock Sundry Debtors Others Total Current Assets (D)

Net fixed Assets (E)

Miscellaneous assets (F)

Intangibles (G) Total miscellaneous assets H =

Total assets (D+E+H)

Working capital surplus / deficit (current assets – current liabilities) Rs.

Tangible Net Worth (C – G) ….. …. … Rs.

Capital Base:

1. Total liabilities / Tangible Net Worth (Ratio) …….2. Sales / Tangible Net worth (Ratio) …….

Profitability:

3. Net Profit / Sales (Ratio) …… 4. Net Profit / Total capital employed (Ratio) …..

(Including current and deferred liabilities) (Ratio) ….. 5. Net Profit / Proprietor’s capital employed (Ratio) ….

Current Position: As on ………..

6. Stock about ……. Months sales 7. Sundry Debtors about ………….. months sales 8. Sundry Creditor about …… months purchases

OPINION / CREDIT REPORT

Name of the unit

i) Partners’ / proprietor’s capital invested in business:

Name of Partner / proprietor

Capital invested Loans to the firm, if any

Partner’s / Proprietor’s over drawings,

Total

Capital of the firm Rs. Add : Loans from partner / proprietor Rs. Add: Reserves and surpluses Rs. Less: Partners ‘ / proprietor’s overdraft Rs. Less Debit balance in profit & loss account Rs.

Less : Intangibles, if any Rs.

Tangible Net Worth of the firm / proprietor

Rs. ii) Means of partners / proprietor

(These details should be furnished separately for each partner – if a partner has no assets, indicate accordingly)

Name of the partner / proprietor : (a) Details of immovable properties owned.

Name of property Location Realisable value in

Rs. Details of prior charges if any

Total (A)

(b) Details of movable properties :

Nature of assets Realisable value in RS. Details of prior charges, if Any

Shares Debentures Insurance policies (surrender value)

Other (please specify)

Total (B)

Total Value of assets (A+B) Rs.

Less Borrwoings agasint total assets mentioned above Other borrwoings / liabilities Rs.

Add: Investment of the partner in business of the firm Financed investment of the partner in any other business (specify details) Rs.

Total net means of the partner / proprietor Rs.

The net means of the partner (Shri / Shrimati. ) can be conservatively estimated at Rs. The aforesaid information has been verified from independent market sources.

(Similar information should be furnished for each partner)

iii) (a) Tangible Net Worth of the firm Rs. (b) Aggregate Net means of the partner Rs.

General Remarks :

(Please comment on (a) business ability, (b) credit enjoyed in the market and (c) reputation for honesty, integrity, etc.)

Date Branch Manager

STANDBY LOAN TO CORPORATES FOR PURCHASE OF VEHICLES

1. Target Group

: Existing corporate borrowers enjoying fund based facilities of at least Rs.1crore in C&I and SSI segments

2 Eligibility

: CRA rating of SB3&SBTL3 and above

3 Purpose

: Exclusively for purchase of new vehicles,(cars, vans, MUVs, mini-bus) for use by promoters/executives of the unit.


: Term Loan


: 10% of the fund based limit not exceeding Rs.25lacs

6 Margin

: 20% of the cost of the vehicle including tax and insurance

7 Rate of Interest

: 1% over SBAR irrespective of the CRA Rating


- Collateral

: Hypothecation of the vehicle by noting charge with the RTO

9 Processing fees NIL 10 Repayment

In monthly / quarterly instalments not exceeding 60 months

11 Documentation

: i) As per simplified SME Documentation ii) The arrangement letter should indicate that the release of the Stand-by Loan will be at the sole discretion of the Bank. iii) In the case of the loan being extended to partnership firms, all the partners should request for the release (disbursal) of the loan.

12 Special features

: The loan should be disbursed as and when requested for, subject to the following conditions:- i) the limit is not overdue for renewal ii) the borrowal accounts are regular iii) conduct of the account is satisfactory.


A simple note should be put up to the Branch Manager / Division Manager for release of the loan.

Product Highlights: Very often the corporates which are financed by us for their working capital needs resort to finance from NBFCs or other banks for purchase of vehicles for their CEOs or other senior functionaries. This product is specially designed for extending credit by way of term loan upto Rs.25lacs for SB3 and above rated companies enjoying credit facilities of at least Rs.1crore with us. Marketing tips:

At the time of renewal of existing working capital limits of eligible units, this product can be offered as an add-on.

The repayment period is 60 months The rate of interest is far lower than that charged by car financiers, etc.

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AUTOCLEAN

1. Target Group

: .Owners of auto-rickshaws to buy CNG/LPG kits from authorised dealers

2. Eligibility

: Account should be a standard asset if auto is already financed by us.

Takeover of accounts from other banks is permitted subject to takeover norms.

Borrowers of other banks are NOT eligible. Commercial vehicles are also eligible if necessary

permits are eligible. 3. Purpose

: Conversion of petrol operated vehicles to CNG/LPG

operated vehicles by fitting CNG/LPG kits 4. Type of facilities

: Medium Term Loan


: Total cost of kits subject to a maximum of Rs25000/-

6. Margin : NIL 7. Rate of Interest : 1.50% below SBAR 8. Security:

- Primary

- Collateral

: Hypothecation of vehicle OR group guarantee NIL


10 Repayment

24 months 36 months if vehicle is already financed by us

11 Documentation

: Hypothecation Agreement As per simplified SME Documentation

Irrevocable letter of authority from the borrower Form 29 &30 (Blank Transfer form) Form 34 for creation of charge by RTO using

hologram 13 Special features

: Obtain the following – Driving license Permit Badge copy Fitness Certificate issued by RTO Meter Certificate Work Order from RTO-BTI form RTO endorsement on the RC book after fitting the

kit Fitting of the kit should be at an RTO approved

centre.

Product Highlights: This is a product designed to assist in cleaning up the environment, especially in metro and urban centres which have become highly polluted due to auto emissions of all types of vehicles. This product is aimed at owners of auto rickshaws who are obliged to convert their engines to run on CNG / LPG in Delhi and Mumbai by a Supreme Court direction and the others may do so on a voluntary basis. This product is by way of a term loan to meet 100% cost of conversion subject to a maximum of Rs.25,000/- repayable in 24 months. Apart from the 2 metros, where it is mandatory, at other places, it should be ensured that there are adequate refill facilities available for auto rickshaws which are converted to CNG /LPG. Marketing Tips: Our existing borrowers of auto richshaws can be targeted for this product on a longer repayment period of say 36 months .

FAQs

How do we ensure that refill facilities are available in the centre?

The applicant must produce a work order from the RTO before we consider this case. Normally the work order is issued only if refilling and other facilities are available.

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CAR LOANS TO SME UNITS Car Loan to SME Unit (New Vehicles)

13. Purpose

: To provide term loan to the promoter/partner / senior executive of the SME units having borrowing arrangements with the Bank or their family members either in their own name or in the unit's name for purchase of passenger cars, jeeps, multi utility vehicles (MUVs) and sports utility vehicles (SUVs) etc.

14. Target Group

: The loan can be extended to as many promoters / partners , senior executives and even their family members * either on their own name or unit's name based on their individual net worth and repayment capabilities. The promoter / partner/ Senior Executive will act as a joint applicant whenever the loan is taken in the name of unit and the joint applicant will also be liable to repay the loan amount. In case the loan is taken in the joint names of the unit and a senior executive, Company or the promoter or the partner will guarantee the loan. Availing of car loan in the promoter's name or firm's name will be left to the choice of the customer. *Family for this purpose is spouse and children.

15. Nature of Facility : Term loan.

4 Eligibility : Case I - When the loan is availed of in the name of an individual: Income: An individual must have a net annual income of Rs.100,000/- and above for the last year as per income tax return.

Case II - When the loan is availed in the name of unit: Since the promoter/partner/ senior executive will be the joint applicant in this case and 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.100,000/- and above for the last year as per income tax return.

Definition of “Senior Executive”:

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

5 Authorised Branches

: All branches catering to SME clients can extend the schemes to SME clients.

6 Security : • Only hypothecation of the vehicle(s) purchased will be taken as a security.

• This hypothecation charge must be mentioned in the books of the RTO.

• No additional security including the charge on the existing collateral will be asked from SME clients.

7 Assessment : Assessment of loan amount will be entirely based upon

the personal net worth and repayment capabilities of the individual or the joint applicant when the loan is in unit's name. Any loan obtained under this facility will not be linked to the existing facilities of the SME units and no additional security will be asked.

8 Loan Amount : The maximum loan amount would be 2.5 times the net annual income (i.e., income as per latest income tax return flied less taxes payable).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. For new vehicles, there is no ceiling in loan amount 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 A.G.M, 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. *(EMI - Equated Monthly Installment) (NMI - Net Monthly Income) _

9 Margin : 15% The sanctioning authority will have discretion to reduce

the margin by 5%. A further reduction of 5% can be given by an authority of the rank of AGM based on the factors like relationship, business expected, competition, etc. In any case the total reduction in margin should not be more than 10%.

10 Rate of Interest : FLOATING RATES:

I. NEW VEHICLES: Tenure Rates of Interest wef

20.02.2007 Upto 3 years & loans of Rs.7.5 lac and above

0.75%below SBAR

Upto 3 years for loans less than Rs.7.5 lac

0.50%below SBAR

>3 to 5 years all loans

0.50% below SBAR

> 5 years upto 7 years all loans

0.25% below SBAR

11 Penal Interest : Since the applicants under this facility will be our SME borrowers it should be possible to monitor closely and prevent the accounts from becoming irregular. However should some accounts become irregular due care should be taken to make then regular within 60 days. . In case the account remains irregular beyond a period of 30 days a penal rate of 1 % p.m. over and above the applicable rate can be charged.

12 Processing Fee : nil 13 Repayment : a) The loan should be repaid in suitable

monthly/quarterly installments acceptable to the customer in such a manner that the loan is liquidated within a period of 7 years. The customer' will have option for payment in shorter duration. b) The Equated Installment will be determined on the basis of the current rate of interest. c) Post dated cheques should be obtained from the borrower.

Since we are dealing with the promoter / partner of the SME units in their individual capacity and not as employees of the unit check off facility may not be applicable under this facility. Suitable standing instructions on their accounts to recover installments and interest may be taken.

14 Security Documents

: As applicable to “P” Segment Car Loan

15 Insurance : The vehicle purchased is' to be kept comprehensively insured in the name of the borrower for the market value or at least 10% above the loan amount outstanding, whichever is higher, and the Bank's interest as a hypothecatee should be noted in the certificate of insurance and insurance policy. A copy of this is to be retained with the loan documents.

Insurance register is to be maintained

16 Mode of Disbursement

: Amount should be remitted direct to the supplier/dealer by means of a crossed 'Account Payee' demand draft / banker's cheque which should be forwarded under cover of a letter as per Annexure car IV. The beneficiary's Bank name and if possible, Bank account number should be ascertained from the beneficiary and mentioned in the draft/banker's cheque. No charges should be levied for issuance of banker's cheque/demand draft.

17 Prepayment Penalty

: Prepayment fee of 2% of the amount of the loan prepaid will be levied if the loan is taken over by another bank / FI Or the loan is repaid before expiry of half the agreed repayment period Or partial repayment is made in the first year No pre payment to be levied if the loan is foreclosed in order to avail a fresh car loan.

18 Inspection : a) For Standard Asset .accounts periodical. Inspections are waived after the initial inspection. However, if there is a default of 2 monthly installments, inspection would be required. In case of NPA accounts inspections should be made twice a year. b) Inspection register is to be maintained properly.

19 Discretionary Power

: To be exercised as per the Delegation of Powers advised by the LHO

20 Papers to be submitted

: The following papers to be submitted along with loan application

2 passport size photographs of borrower / guarantor(s).

A copy of passport /voters 1D card / PAN card Proof of residence .Copy of Income Tax Return for last two financial

years, duly acknowledged by ITO.

21 Applicants restricted under this facility

: This facility should not be extended in cases where: • The SME units are weak or have turned NP As or

likely to become NP As. • The relations between branches & promoter(s) is

soured. • Wherever it is proposed to initiate legal action

against the unit / promoters

Car Loan to SME Unit (Used Vehicles)

1 Purpose

: To provide term loan to the promoter/partner of the SME unit or their family members either in their. own name or in the unit's name for purchase of passenger cars, jeeps, Multi Utility Vehicles (MUVs) and SUVs not more than five years old.

2 Loan Amount Subject to a maximum of Rs. 15 lakhs. (All other details under this head are same as that of car loan to SME Units)

3. Valuation : • Certificate of fitness/valuation from a reputed garage would be required which should be retained with the loan documents. The garage should be authorised by the Liaison Officer in the LHO/ZO in big cities. No valuation certificate is required if the car is sold under the Maruti True Value scheme or Automartindia.

• Branches should ensure that the fitness and valuation is appropriate to the past ownership pattern. Care should be taken to avoid models, which have a low second/third hand demand like Fiat, Uno, Daewoo, Matiz, etc.

4. Take over of loans i) Takeover of car loans may be considered

selectively where: a. The vehicle is not more than 2 years old

b. It is a single ownership vehicle c. No insurance claim has been availed and. d. The account of the borrower with the other bank is a Standard Asset i.e. all repayments have been made as per terms of sanction of the original financier. ii) The loan should be repaid within 7 years from the date of the original purchase of the vehicle iii) Reimbursement of costs of unencumbered vehicles can also be given under the above takeover norms and other terms of financing old vehicles up to 2 years of age.

5. Repayment : • For old vehicles recovery should be such that the loan gets repaid within 7 years from the date of original sale.

• Maximum repayment period to be fixed as per

age of the vehicle. Repayment schedule will be fixed while ensuring that the loan gets repaid within 7 years of life of the vehicle e.g., a five year old vehicle will be financed with a repayment period of 2 years only.

(All other details under this head are same as that of car loan for new vehicles)

6. Rate of Interest : FLOATING RATES only All Centres: a. Upto 3 years: 2% above SBAR b: Above 3 yrs and upto 7 yrs: 2.25% above SBAR

7. Special Remarks : All the other features for car loan for used vehicles are same as the car loan for new vehicles.

OD facility is NOT available for SME Car Loan ( both new and used vehicles)

**************

Back to Index

PARYATAN PLUS

13. Target Group

: All segments of tourism namely : Hospitality Industry Transportation Travel agents Tour operators Adventure tourism Religious tourism

14. Eligibility

: Individuals, partnerships, corporates, trusts

15. Purpose

: Construction / renovation / modernisation / expansion to Hotels / Yatri Nivas / Dharamshalas, etc.

Construction of office premises/purchase of office furniture and computers etc., by travel agents/tour operators

Purchase of luxury buses/ coaches ,cars, vans etc., at tourist sites

Purchase of house boats/ luxury boats Setting up of restaurants/coffee houses/ icecream

parlours etc. Amusement parks / Ropeways Health clubs / Spas


: CC(Hyp) , TL , LCs, BGs


: Minimum Rs.2lacs

18. Margin

: 20% 40% for purchase of old vehicles of less than 5 years


: As per C&I / SBF rates as the case maybe


- Collateral

: Hypothecation of assets financed by the Bank Tangible Collateral of immovable property or TDRs,NSCs, KVPs,, etc for at least 50% of the loan amount

21. Processing fees As applicable to C&I / SBF units

22. Repayment

: TL 3 to 7 years including start up period not exceeding 18 months CC Repayable on demand

23. Documentation : As per simplified SME Documentation


: Maintenance of Current Account to route all receipts is mandatory

DSCR - minimum 1.5 in case of vehicles Appropriate licenses to be obtained Only skilled / trained persons eligible Audited financials are desirable Take over of loans permissible subject to take -

over norms For tourism related activities, WC limit over

Rs.20lacs or Advance for purchase of more than 10 vehicles under this scheme must be classified under C&I segment and should be treated as such for all purposes.

Luxury coaches upto 10vehicles can be financed under Transport Operators Scheme

Product Highlights: A comprehensive product aimed at the Tourism industry for providing finance for various activities such as hospitality industry, transportation and tour operators have been brought under the ambit of "Paryatan Plus". No cap is stipulated for this product. Credit facility can be granted by way of TL / CC / LCs / BGs for the purpose of construction of hotels / rest houses / Yatri Niwas, Luxury buses / Boats / Amusement Parks, Health Spas, Travel agents etc. Marketing Tips:

• Tour operators, travel agencies are ready market for this business. • Hotels, restaurant owners at tourist sites can be targeted for this product. • Established and reputed travel agents such as Thomas Cook, Sita travels,

SOTC etc., can be contacted. • Takeover of existing loans from Banks / FIs is a ready source of business.

TLs extended by Tourism Development Corporation at high rates of interest can be taken over subject to take over norms being fulfilled.

FAQs

How can we decide whether the term loan for purchase of vehicles by a large

travel agency should be considered under Transport Plus or Paryatan plus ? Transport plus has an upper ceiling of Rs.7.50 crs.but this product has no ceiling.

Back to Index

Enclosure to Circular No. CIRCO/ADV/221/2004-05 dated 14.12.2004 State Bank of India Small Business - Transport Operators …………….. Branch Interview-cum-Appraisal Form

APPLICATION FOR TERM LOAN / WORKING CAPITAL ADVANCES

1. Personal Data : 1.1 Name of the Applicant : 1.2. Business Address : 1.3. Constitution : 1.4. Experience Name(s) of proprietor / partners / Age Previous Office-bearers of co-operative society : experience 1.5. If already owning vehicles, details (like type,

year of manufacture, cost price, present estimated

value, income therefrom, if a loan has been taken

against them, details) :

1.6. Whether the vehicle will be driven by the

applicant) :

1.7. Staff employed : 1.8. In the case of owner-drivers, a) Number of the dependents of the family : b) Minimum sustenance amount required for the family : c) Present monthly income. d) Whether belonging to scheduled caste / tribe: e) If owning land, its size : 2. Date on the vehicle proposed to be purchased : 2.1. Type, make and year of manufacture :

2.2. Fuel used :

2.3. Dealer's name and address :

2.4. Cost: :

(Proforma invoice to be enclosed. In the case of

secondhand vehicles, valuation certificates from

two reputed dealers, workshops to be enclosed)

i) Chassis : Rs. ii) Body Building : Rs. iii) Others ( ) : Rs.

------------------------------ Total : Rs. ------------------------------ Applicant's contribution ( % ) : Rs.

------------------------------ Loan required : Rs.

-----------------------------

- 2 -

2.5. If a working capital loan is required, details

relating to purpose (enclosing estimates /

invoices, where applicable) amount involved,

etc.) :

2.6. Amount of working capital required : Rs. 3. Operational viability 3.1. Carrying capacity of the vehicles (persons / load) 3.2. Route on which or area where the vehicle will

operate : 3.3. Position relating to the obtaining of the necessary

licence / permit :

3.4. Anticipated monthly earnings : 3.5. Factors which assure the applicant of achieving

the above earnings and of a successful business

in his area of operation :

3.6. Particulars of Sales Tax & Income Tax assessments: 4. Repayment : 4.1. Start-up period required, with reasons :

4.2. Monthly repayment towards existing Bank Loan : Rs. Monthly repayment towards proposed Bank Loan: Rs. Monthly repayment towards other borrowings (To be specified) : Rs. -------------------------- Total : Rs. (A) -------------------------- Anticipated net cash accruals as per enclosure : Rs. (B) -------------------------- Debt service ratio : B / A : -----------

5. Security :

6. Any other remarks:

Date : (Signature of borrower).

Place :

Name of the Bank official who interviewed the

applicant

7. Remarks of the Appraising official.

8. Loan recommended, with stipulations:

Date

Recommending Officer Recommending Officer Recommending Officer

9. Section:

Date Sanctioning Authority.

TRANSPORT OPERATORS OPERATIONAL VIABILITY: 1. Income per month:

i) Number of days in a month the

vehicle will be on the road :

ii) Number of kilometers it will run per day :

iii) Fare / Rate per kilometer : Rs.

iv) Average income per month : Rs. (A)

v) Any other (outside) income : Rs.

vi) Total income (iv) + (v) : Rs. (B)

2. Expenses per month:

Fuel per month = XYZ N

where

X = Cost of fuel per litre.

Z = Kilometers run per day

Y = Cost of fuel per litre

N = No.of kilometers the vehicle will run

Per litre.

i) Motor and other municipal taxes : Rs. ii) Insurance premium : Rs. iii) Garage rear : Rs. iv) Depreciation : Rs. v) Interest on borrowings : Rs. vi) Maintenance expenses : Rs. vii) Cost of oil, spares, etc. : Rs. viii) Staff salary : Rs. ix) Drawings of the operator : Rs. x) Others : Rs. --------------------

Total expenses Rs. (C)

-------------------- …2..

..2..

3. Surplus: B - C : Rs. Income tax,if any : Rs. Net surplus : Rs. Depreciation added back : Rs.

4. Net cash accruals : Rs.

---------------------

TRANSPORT PLUS

1. Target Group

: Surface transport operators owning more than 10 trucks /tankers / tippers / luxury buses etc including the proposed generally complying with eligibility criteria detailed below

2. Eligibility

: Transport operators holding valid national / State route permits

The promoters/CEO should be IT assesses. The promoter/ CEO should have experience of 3

years or more in the field, and should have an annual income of Rs.3lacs as per IT assessment in the previous year.

Dealings with their bankers should have been satisfactory.

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 own more than 10 well maintained and road – worthy vehicles

Should have had 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. Average DSCR (gross) :Minimum 2* Current ratio minimum 1.33* TOL /TNW maximum 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.)

3. Purpose

: To finance purchase of new transport vehicles and WC finance against receivables for cost on road ie all costs such as, invoice price of the chassis, cost of body building, road tax, insurance, etc..


: TL and Cash Credit


: Corporates Non Corporate TL& CC - Rs.10 lacs to Rs.10crs Rs.10lacs to Rs.7.50crs .

6. Margin : TL & CC 20%

7. Rate of Interest

: For TL : 0.25% above SBAR For CC: 1.00% above SBAR


- Collateral

: Hypothecation of vehicles financed, spares and receivables Other unencumbered vehicles / immovable property for a value of not less than 25% of loan amount

9. Processing fees 1%

10. Repayment

: TL – Maximum of 5 years . EMIs to start from after 3 months. PDCs to be obtained for the entire period of repayment CC - Repayable on demand and renewable annually

11. Documentation

: As per simplified SME Documentation


: Prepayment charges of 1% p.a. for the amount prepaid and for the residual period

Inspection once year

Product Highlights: So far, NBFCs have been the major source of finance for fleet owners especially of surface transport. This product has been designed to take care of the credit needs of the transport vehicle owners of 10 or more vehicles used for transportation of goods and passengers and holding valid permits for plying the vehicles either within the state or inter- state or national permit. The product comprises of a TL portion for financing of 80% of the cost of the vehicle and a cash credit portion to take care of the working capital needs of the operation to the extent of 80% of the receivables not more than 4months old.

Marketing Tips:

• Exporters of perishables such as seafood, vegetables and milk who use refrigerated vans for moving their merchandise from the production location to the processing plants / ports can also provide business for the Bank under this product.

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ANNEXURE STATE BANK OF INDIA

BRANCH:

FINANCING FLEET OPERATORS - LOAN APPRAISAL NOTE NAME OF THE FIRM/COMPANY: NAME OF THE CHIEF PROMOTER/: CHIEF EXECUTIVE CUSTOMER/ A/C NO: 1.a) Personal details: SR. NO.

PARA METERS CRITERIA ELIGIBILITY (YES/NO)

1. Experience in transport business

More than 3 years

2. Owning a house In own/spouse name or ancestral (may be mortgaged)

3. Income Tax Return filed/ assessed for last year

For income of 2 lacs and above

4. Dealing with Banks Satisfactory record

b) Business details: 1. Constitution Pvt./Public Ltd. Company/

Partnership

2. IBA approval and/or Membership of local transporters association.

For trucks only

3. Continuous profit Last 2 years 4. Income shows a rising trend Last 2 years 5. No of vehicles owned

(including the proposed) More than 10 well-maintained vehicles (age not more than 12 years)

6. Maintenance of existing vehicles

Evidenced by routine frequency of servicing/ accident record

7. Dealing with Banks/FIs/ NBFCs

Satisfactory record

8. Assured cash flow Tie up with companies 9. Quality of receivables Up to 3 months of income 10.

Value of orders/contracts on hand to Estimated Income (%)

Over 30%

11. Repayment period proposed (TL)

Up to 5 years

12. Liquidity Minimum 1.33 (1.33) 13. TOL/TNW * Maximum 2.75 (3.00) 14. Average gross DSCR (TL) * Minimum 2.00 (1.75) 15. Promoters’ contribution to the

project (TL) Minimum 20%

16. Debt/equity Maximum 2: 1 * May be diluted upto the indicative level as per the loan policy guidelines, as shown in bracket, for units having 100 % tie-up arrangements. c) Collateral Security: 1. Value of collateral security (all

existing unencumbered vehicles and others, if any) /loan amount (%)

25% and above where 100% tie-up arrangements exist, otherwise at least 50%.

The proposal will be considered acceptable only if the answers are “yes” for all the above 21 parameters under the eligibility column of sl. no. 1(a), (b) and (c).

(Rs. In crores) 2. Performance & Financial indicators:

As on 31.03 Actuals Actuals (Earlier Estim.)

Estim (Cur. Year)

Projections (Next Year)

PUC TOL TNW TOL/TNW Cur. Ratio 3. Term Loan : Commercial viability: Sales/Income Net Profit Cash Accruals Interest TOTAL TL repayments Interest TOTAL Gross DSCR

Average Gross DSCR Net DSCR Comments on DSCR (in brief) 4. Assessment of Cash Credit limit: Receivable levels: (Months/Days)

Receivable/Payments Actuals Estimated Projected

Receivables S. Creditors Assessed Bank Finance:

Assessed Bank Finance Actuals Estimated

Projected

Year TCA OCL WC Gap NWC BANK FINANCE (BF) Brief comments on the assessment of the cash credit limit: (Additional information may be added to cater to a particular proposal) 5. Recommendations for the proposed facilities: 6. Submitted for sanction. Signature : Designation : Appraised by Assessed by State Bank of India,

……………………..Branch, Date:

ANNEXURE-3 STATE BANK OF INDIA

BRANCH:

FINANCING FLEET OPERATORS


----------------------------------------------------------------------------------------------------------- PLEASE FILL UP THIS FORM ONLY IF THE ANSWERS TO ALL THE FOLOWING QUESTIONS ARE 'YES' ----------------------------------------------------------------------------------------------------------- 1. Whether the promoters have satisfactory record of dealing with Banks and have

never defaulted to any Bank/FI/s? 2. Whether the fleet possesses more than 10 well-maintained vehicles, including

the proposed vehicle/s? 3. Whether the registered/administrative office is situated at metro/urban/semi

urban centre? 4. Whether the unit is earning profit? ----------------------------------------------------------------------------------------------------------------- PLEASE USE SEPARATE SHEET, WHEREVER SPACE IS NOT SUFFICIENT -----------------------------------------------------------------------------------------------------------------

A. PERSONAL DETAILS OF THE CHIEF PROMOTER/CHIEF EXECUTIVE 1. a) Name: b) Son/wife of: c) Date of Birth: 2. Residential address:

Tel.Nos: Fax No: e-mail: 3. Your house is: Owned Owned (mortgaged)

Rented 4. Academic Qualification:

Is it related to your line of trade? 5. Experience in Transport business

(no. of years and brief details): 6. Your Income Tax Permanent A/c No: 7. Details of Bank account: Bank and branch: A/c No: Opened on: 8. Details of assets: Land/Building:

(location, value etc.) ii) Vehicles owned: (Regn.No, make, model, present value)

iii) Life Insurance Policy (Policy no, sum assured, amount paid up, etc.) iv) Bank deposits (Bank branch, A/c no., present outstandings)

Jewellery and household goods: (description, value) vi) Others (description, value)

9. Details of liabilities:

i) Housing loan details: Address of the house/flat: Loan amount: Repayment terms: Present oustandings: Loan availed on:

Bank & Branch: ii) Car loan details: Regn.No: Make & Model: Loan amount: Repayment terms: Present oustandings: Loan availed on: Bank & Branch:

iii) Other loan details: (including loans from friends & relatives) B. GENERAL 1. Name of the company/firm: 2. Address:

Regd. office:

Telephone No:

Admn. office:

Telephone No:

Branch office/s:

Telephone No: 3. Constitution: 4. Loan applied for: i) Term Loan: Rs. ii) Cash Credit: Rs. ------------------ TOTAL Rs. 5. Purpose of the loan: (Purchase of vehicles, working capital requirement, etc.) 6. Mode of repayment:

C. BUSINESS DETAILS 1. Year of commencement of business: 2. a) What is the level of competition for the business?

How do you plan to meet the competition?

What are the marketing arrangements? Please mention about value and details of tie up

arrangements/orders/contracts with clients: 3. IBA approval obtained? If yes, details: 4. i) Details of Bank Account:

Bank/Branch:

A/c No: Since:

ii) Can all sale proceeds be routed through your account with us? If not, give reasons:

5. What is the quality of your receivables?

How many months’ income do they represent? Can you give an ageing of your receivables? (as on last 31st March)

AGE AMOUNT PERCENTAGE OF TOTAL Less than 1 month old 1 to Less than 2 months’ old 2 to 3 months’ old More than 3 month’s old Total 100%

What are the means of finance?

MEANS AMOUNT GIVE DETAILS (BANK SHOULD BE

(Rs) SATISFIED ABOUT YOUR ABILITY TO PROVIDE THE MARGIN)

From own sources Bank loan Friends and relatives Others Total 7. What is the repayment period you are looking for the term loan? 8. What will be the annual cash accruals? 9. What will be your liability towards payment of installments and interest on term

loan in a year?

10. Whether the cash accruals will be sufficient to take care of the repayment

liability?

11. Brief background of the firm/company: 12. Details of Associate concerns with their borrowing arrangements: 13. Details of major shareholders: 14. Names of Key Managerial & Technical Staff with their

qualification/experience: 15. Are your business operations computerised? 16. Arrangements for periodic maintenance of vehicles: (Details of routine frequency of servicing, maintenance

procedure, accident record) 17. Anything else you would like to tell about your business. 18. What is the collateral you would be able to offer? Give details. A. UNENCUMBERED VEHICLES: REGN. NO. & DESCRIPTION PRESENT VALUE (Rs) BASIS Total B. OTHERS, IF ANY:

DESCRIPTION PRESENT VALUE (Rs) BASIS Total GRAND TOTAL (A + B):

19. Please tell us about your future plans: What is the level of income/sales you are projecting for next 5 years? Briefly describe the basis. What is the level of receivables you are expecting for next 5 years in terms of month's income/sales? 20. a) Whether the vehicles come to the headquarters every month?

b) Can the vehicles be available to the Bank for inspection purpose every month? If yes, how?

I/we certify that all information furnished by me/us is true, correct and complete. I/we have no borrowing arrangement for the company/firm with any bank except as indicated in the application form. There are no overdues/statutory dues owned by me/us or the firm/company. No legal action has been taken against me/us/firm/company. I/we shall furnish all other information that may be required by Bank in connection with my/our application. This information may also be exchanged by you with any other agency, you may deem fit. You, your representatives or any other agencies as authorized by you, may at any time inspect/verify my/our assets, books of account, etc. in our office/business premises as mentioned above. You may take appropriate safeguards/action for recovery of bank's dues including publication of defaulters' name in web site/submission to RBI. I/We further agree that my/our loan shall be governed by the rules of State Bank of India as may be in force from time to time. For and on behalf of the company/firm Place:___________ Date: ___________ Signature of Chief Promoter/:_____________ Chief Executive with seal ENCLOSURES: 1. Details of Existing Vehicles :

Regn.No.: Model/Year: Make: Name of financer: Amount: Present outstandings

2. Audited Balance Sheet for last 2 years : 3. Income Tax Assessment/Acknowledged : copies of last 3 years (Personal & Business) 4. Bank Statement of last 3 years (Business) : 5. Quotations : 6, Copies of Partnership Deed/Certificate of Incorporation and Commencement of Business/ Memorandum and Articles of Association: 7. Copies of route permits, driving licenses of drivers: 8. Photographs of promoters/guarantors, with their signatures: 9. Credit Information Sheet of the Promoters/Company/

Firm/Guarantors: 10. Projections for 5 years: 11. Documents of tie-up arrangement:

12. Details of servicing/accident record: 13. Any other papers necessary for loan approval Transport plus circular

ANNEXURE-4 POST DATED CHEQUES (PDCs) GUIDELINES i) Number of cheques to be obtained: 60 PDCs or number of cheques covering the

full repayment period, whichever is less should be obtained. Cheques should be scrutinized to ensure that these are properly filled in. The 'Crossing Seal' would be required to be put on the face of the cheque before keeping them in custody.

ii) Date of PDCs: The cheques should preferably be dated prior to the 7th of every

month. iii) Custody: PDCs should not be retained alongwith the security documents to

avoid unnecessary handling of documents. These should be retained by the Asst./Deputy Manager (Advances) in joint custody with Manager of the Division or Accountant or Cash Officer and placed in a fireproof safe/locker.

iv) Handling of cheques returned unpaid: Should any cheque be returned unpaid for

want of sufficient funds, the borrower should be immediately contacted. The cheque should be represented within a period of three days of its having been returned unpaid on a written request of the borrower. In the event of the borrower failing to deposit the amount of the cheque, the undernoted procedure for initiating legal action under Section 138 of the Negotiable Instruments Act, 1881, should be initiated:

Steps to be taken when a cheque is dishonoured on account of (a) insufficient fund (b) closing the account, (c) stop payment of the cheque (on account of insufficient fund).

Step 1

When a cheque is dishonoured the branch has to give a notice in writing to the drawer within 15 days. Enter in a separate register for this purpose and monitor.

Step 2

If drawer fails to make the payment of the said amount of money to the Bank within 15 days of the receipt of the notice mentioned in Step-1, proceed to Step-3.

Step 3

File a complaint before the Metropolitan Magistrate or First Class Magistrate, within one month from the date of cause of action.

Example: Cause of action arose on 01.01.2003, under Step-2, (that is failure to pay within time mentioned there) file the complaint on or before 31.01.2003.

Step 4

During the pendency of the complaint if the drawer desires to compound the offence, branch can withdraw the complaint on receipt of the amount of the cheque, interest, legal cost and other expenses.

It may, however, be noted that the initiation of legal action is a measure of last resort and all efforts should be made to contact the borrower to regularize the position. However the one month time limit shall not be allowed to be exceeded under any circumstances, (except under instructions from the Controlling Office).s

PETRO CREDIT

1. Target Group

: Retail Outlets (RO) of petroleum products of Reliance

Industries Limited(RIL).

2 Eligibility

: RIL plans to set up 5500 retail outlets for their petroleum products on “Dealer – owned & Dealer – operated”(DODO) basis in addition to “Company-owned &dealer operated”(CODO)outlets . The Bank has entered into an MOU with RIL for a tie – up arrangement for financing their retail outlets Corporate and non – corporates having dealership appointment letter from RIL are eligible

3 Purpose

: To purchase land / to set up infrastructure required / to set up shops/eateries /ATM / internet kiosks etc.


: Term Loan / Cash Credit


: TL – Maximum Rs.100 lacs CC – As per eligibility For DODO model – 75% of cost of stocks of petroleum or 4 days cost of sales of petroleum, whichever is lower. For CODO model – 75% of cost of stocks of petroleum For stocks of other items such as tyres, spares, and other related products/services as specified by Reliance, the credit requirements need to be assessed accordingly.

6 Margin

: 15 to 25 % for TL 25% for WC

7 Rate of Interest

: For TL of 84 months and cash credit Floating rate – 3% below SBAR with monthly rests or . Fixed Rate - 9.30% with monthly rests for TL of 60 months and rate to be reset every 2 yrs


- Collateral

: i) Mortgage of land ii) Hypothecation of all assets created out of Bank finance i) For dealers with a satisfactory track record of 3 years in any business

9 Processing fees 0.50% of TL and Rs.250/- per lac for WC

10 Repayment

For term loan For fixed rate of interest -:maximum of 54 EMIs starting after 6 months from the date of first disbursement. For floating rate of interest :- Maximum 78 EMIs starting after 6 months from the date of first disbursement For Cash Credit Repayable on demand and renewable every year

11 Documentation : Revised C&I documents An undertaking from the borrower that he will not

obtain any further loans for petro-retailing business without prior written permission from the Bank

A tripartite agreement between RIL, their dealer and the Bank for RIL to provide support to the Bank in the event of default by the dealer to the Bank

12 Special features

: Pre-payment charge: - As per extant instructions. No charge if the fixed rate TL is paid in full in case of upward resetting of interest rare

Insurance of assets acquired out of Bank finance for full market value to cover all risks has to be obtained

Product highlights: RIL standardized project reports for different types of Retail Outlets (RO) depending on location. The capacity of the different ROs will be 2 and 3 dispensers only. The maximum projected sales for an RO with 2 dispenser will be 50kl of motor spirit and 300kl of High Speed Diesel per month and 50kl MS and 500kl of HSD per month for an RO with 3 dispensers. each dispenser will have a storage capacity of 20kl of MS and 40kl of HSD. The project cost of an RO will be around Rs.60 to 70 lacs excluding cost of land and working capital requirement of Rs.10 lacs. Security deposit is payable by the RO to RIL Marketing tips: RIL is in the process of selecting dealers for retail outlets for selling their petro products. RIL plans to open 5500 retail outlets in the coming 3 years of which 2000 will be set this year. A list of such selected dealers will be provided by RIL and these leads will have to be pursued for booking business under this product.

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STATE BANK OF INDIA _____________________ BRANCH

APPLICATION CUM INTERVIEW FORM FOR FINANCING OF PETROLEUM RETAIL OUTLETS UNDER “PETRO CREDIT” Name of the unit Address of the unit Phone No Fax No Email/Website

Premises owned

Address of Regd. Office in case of Corporates

Premises Owned/Rented

Address for correspondence Phone No Fax No Email/Website

Premises Owned/Rented

Other Services being provided Year of Commencement of Business Experience in the line of activity Constitution Details of reconstitution in the past three years

Details of Proprietor/Partners/Directors Name & Qualifications

Age

PAN Residential Address

Phno/Mobile NetWorth*

* Opinion report on the bank’s prescribed format should be prepared Details of existing banking arrangements: Name of the Bank/Branch


Details of Associate/ Sister/Identical firms: Name of the unit Name of the

Prop/partnersBanking with Limit Outstandings

Details of registration under Shops & Establishment Act / Sales Tax Act/ Any other Act

Position regarding Statutory assessment under IT/Sales Tax/Any other Year upto which assessment completed

Credit Facilities required

Fund based Limit required Non fund based Limit required Cash credit (incl of bill/chq purchases)

Letters of Credit, if any

Term loan Bank Guarantees if any

Total Total For Term loans – Details of assets to be acquired (pl enclose detail lists if necessary Description Details of the


completion Need for proposed Expenditure

Cost Amount Means Amount Land & Buidling Own funds Equipment (proforma invoice to be enclosed)


Other assets Bank loan Total Total Any other information(including specific reasons for Letter of Credit /Bank Guarantee)

BUSINESS INFORMATION Nature of activity (strike out whichever is not applicable)

Trader(wholesale/retail) Business Enterprise / Prof & Self Employed / Transport Operator

(State also whether C & F /Franchisee/dealership / distributorship/ stockist/profession/line of service etc)

In case of C & F / distributorship etc arrangement is valid upto

Requirement of Statutory licenses / approvals Give full details

Details of suppliers / principals Seasonality of activity (specify peak & off-peak periods)

Terms of Purchase/Procurement

Domestic Imports % of Credit purchases to total purchases

% %

Period of credit enjoyed Months Months Average level of Sundry Creditors Rs. Rs. Purchases under LC included above Rs. Rs. Estimated value of remittances to suppliers by DD/TT p.a.

Requirement of stocking Average stock holding Rs. Availability of Storage facilities /address thereof

Rented/owned

Marketing arrangements Availability of tie-up arrangements Major buyers/consumers Level of competition Major competitors Competitive advantage of the unit

Terms of Sales Domestic % of Credit Sales to total sales %

Period of credit given Months Average Receivables level Rs.

Performance Parameters Past/projected

Past three years Projections 31.3.. 31.3… 31.3… 31.3… 31.3…

Sales/Income Net Profit Depreciation Cash Accrual Tangible Net

Worth

TOL/TNW For term loans, please enclose projected profitability statements covering the period of repayment Details of Security offered Primary Collateral

(i) Immovable Property Description of

Property Name of the

Owner Value of the

Property Basis of valuation

(ii) Liquid Securities Description Name of the

Owner Face Value When Acquired Present value

Details of the Guarantor where applicable Name of the

Guarantor & Address Age Qualification Networth Banking with

I/We declare that the information given in the application from are true, correct

and complete and that they shall from the basis of any kind of facility State Bank

of India may decide to extend to me/us. I/we shall furnish all other information

that may be required by the Bank in connection with my application. The

information may also be exchanged by you with any agency you may deem fit.

You may take appropriate safe guards / action for recovery of bank dues including

publication of defaulters names in website/submission to RBI. I/We confirm that

I/we have no borrowing arrangements for the unit with any bank except those

indicated in the application. I / We confirm that I / We are net defaulter of any

bank / any financial institution I/We confirm that there are no over dues /statutory

dues owed by me/us and I/WE have/ had no insolvency proceedings against

me/us nor have I/we ever been adjudicated insolvent. I/We undertake to abide by

the Rules and Regulations of State Bank of India in respect of the facilities being

extended to me/us.

Signature of Borrower

Date: Place: Name of the Interviewing Official List of documents to be attached

1. Partnership deed in original(to be returned) and a copy thereof 2. Memorandum & Articles of Association with certificate of Incorporation in

original(to be returned) and copies thereof 3. Copies of the relevant licence, documents pertaining to ownership/tenancy/lease

agreement in respect of premises where activity will be carried out / service or trade related agreements etc..

4. Latest copy of Income tax returns/Sales tax assessment order etc. 5. Statement of account from the existing banker for last 6 months 6. Copy of Title deeds relating to collateral security being offered 7. Photocopies of PAN card of partners/Directors wherever available 8. Copies of balance sheets for the past three years (audited wherever applicable) 9. Statement of personal assets and liabilities of

Proprietor/Partners/Directors/Guarantors 10. Photographs of Proprietor/Partners/Directors/Guarantors

APPRAISAL

Name of unit/borrower: Segment: SBF/C&I Sector: Priority/nonpriority

Assessment of Working Capital/Term Loan 1. Performance & Profitability:

(Rs. In 000s)Past Projected 31.03…

31.03… Years Current year(est)31.03..

Next year 31.03…

31.03…

31.03…

31.03…

a) Sales/Income

b) Other Income

c) Total Income (a+b)

% increase in ‘c’

d) Expenses

e) Taxes

f) Net profit (c-(d+e))

g) Depreciation

h) Cash Accruals (f+g)

i) TL repayment

j) TOL/TNW

k) NWC

l) Current Ratio

m) DSCR (Gross)

Credit score wherever applicable: 2. Working Capital Required Rs Estimated average stock holding at any one time Estimated Average receivable outstanding at any one time

Less Estimated average credit enjoyed on

purchases Working Capital Required (1) 3. Sources from which required Working Capital would be met:

Net Working Capital in Business (NWC) Bank Finance Recommended Other sources

(2) (A) OR ….. % of Annual Turnover (B) Working capital Assessed/recommended A or B above whichever is more i.e. * Assessed Working Capital @ ….% of PAT Stand by line of credit recommended @…….% of above

Concessions in service charges proposed if any and the Justification thereof

Term Loan: Details of Fixed assets

Cost price/estimate (incl.taxes)

Own funds Bank Finance

Land Building Equipment Others Total Comments on Debt/Equity: Comments on DSCR (in brief): c. Computation of LC limits for WC Total Purchase of stocks

Purchase of Stocks under LC Average monthly purchase of stocks (A) Average holding of imported stocks Average usance period (B) Lead time and transit period (C) Total of (B) and (C) = (D) The requirement of LC limit (A) x (D) Limit recommended b) Assessment of BG limit Outstanding BGs as on Add: BGs required during the period Less: Estimated maturity/cancellation of BGs during the period

Requirements of BGs Recommended BG limit Brief comments on limits recommended

Terms and Conditions of Sanction a. SECURITY Facility Primary Collateral Guarantee

WDV Name MV NW As on

Valuation dated Description of collateral security : b. Deviation from existing security (if any) c. MARGINS : FOR EACH FACILITY AS APPLICABLE) Cash Credit : Existing Proposed Stocks Receivables (Cover ---days)

Letter of Credit BG Term loan d. RATE OF INTEREST : facility Pricing e. REPAYMENT SCHEDULE : f. INSURANCE g. SUBMISSION OF STOCK STATEMENTS h. INSPECTION j. PROCESSING FEE j. UPFRONT FEE k. CONCESSIONS IN SERVICE CHARGES Appraised by Assessed by Sanctioned by Signature Name : Designation Date : State Bank of India, ______________ Branch

ANNEXURE TO APPRAISAL ANALYSIS OF BALANCE SHEETS Liabilites 20 / 20 / 20 / State Bank of India Other Banks Sundry creditors Expenses Loans Other Liabilites Total Current liabilities (A) Term Loans Others Total Deferred liabilities (B) Capital & Surplus (C) Total liabilities (A+B+C) Assets 20 / 20 / 20 / Cash Investments Stock Others Total Current Assets (D) Net fixed Assets (E) Miscellaneous assets (F) Intangibles (G) Total miscellaneous assets H = (G+F)

Total assets (G+|E+H) Working capital surplus/deficit (current assets – current liabilities) Rs. ……………. Tangible Net Worth (C-G) … …. ……… Rs. …………… Capital Base : 1. Total liabilities/Tangible Net worth (Ratio) ………… 2. Sales / Tangible Net Worth ………… Profitability 3. Net Profit/Sales (Ratio) …………

4. Net Profit/Total capital employed (Ratio) ………… (including current and deferred liabilities (Ratio) ………… 5. Net Profit/Proprietor’s capital employed (Ratio) ………… Current Position : As on ………………….

6. Stock about ………….. month’s sales 7. Sundry Debtors about ………….. months’ sales 8. Sundry Creditors about ……………. Month’s purchases

AGREEMENT

This agreement (the "Agreement") is made at ____________ on this _ day of ____ 200 [ ]. AMONGST : ......................................................................................., a corporation incorporated and carrying on business in India as a Scheduled Bank amongst other places at ....... (hereinafter called the "Bank", which expression shall, unless repungnant to the context thereof, mean and include its successors and permitted assigns), the party of the FIRST PART; AND Reliance Industries Limited, a company incorporated under the provisions of the Companies Act, 1956 and having its registered office at Maker Chambers acting through its duly authorized representative _____________ (hereinafter called the "RIL", which expression shall, unless repugnant to the context thereof, mean and include its successors and permitted assigns), the party of the SECOND PART; AND *Mr./Ms.M/s. _______________________, * a company incorporated under the provisions of the Companies Act, 1956 / a partnership concern / a sole proprietorship concern having its registered office / office at ______________________ acting through its duly authorized representative / partners / sole proprietor _______ (herenafter called the "Borrower", which expression shall, unless repungnant to the context thereof mean andinclude its successors / successors-in-interest / legal heirs, representatives and permitted assigns), the party of the THIRD PART. [*Delete which ever is inapplicable] Whereas RIL is interested in the setting up and running of retail. outlets for the sale of its products inter alia being Motor Spirit, High Speed Diesel, Lubricants and Auto Liquified Petroleum Gas (the "Products") at various places in India. AND Whereas the Borrower has been selected for grant of dealership by RIL vide LOI dated _____ which has been issued by RIL and duly received and accepted by the Borrower and the Borrower & RIL has already entered into dealership agreement Dated ................ (the "Dealership agreement") with the Borrower. AND Whereas the Borrower owns a piece of land bearing No. ____________ admeasuring about _________ situated at _______________ (the "said Land") and is bounded as under : On the North : ___________ On the South : ___________ On the East : ___________ On the West : ___________

And Whereas the Borrower has agreed to run a retail outlet for the sale of Products at the said Land (hereinafter called the "Retail Outlet"). And Whereas towards construction of the Retail Outlet, payment of security deposit in terms of clause if the "Dealership Agreement and initial operational expenses of the Retail Outlet, the Borrower requires funds and thus has requested the Bank ot provide the Borrower with credit facilities. And Whereas the Borrower has executed lease deed dated _________ for the Retail Outlet i.e. the said Land and the structure constructed or to be constructed thereon in favour of RIL. And Whereas the Borrower has requested the Bank to provide it with the credit facility in a sum of Rs. ___________________ /- (Indian Rupees facility in a sum of Rs. _____________ (INdian Rupees ________________________only) (hereinafter collectively called the "Credit Facilities") for the purpose of construction over the said Land, making the security deposit to RIL and meeting the working capital requirements. And Whereas relying upon the representations made by RIL and the Borrower in this Agreement, the Bank has agreed to grant the Credit Facility to the Brorrow on the terms and conditions in this Agreement. NOW IT IS HEREBY AGREED BY AND AMONG THE PARTIES HERETO AS FOLLOWS :

1. The Bank agreed to grant to the Borrower the Credit Facilities, upon the terms and subject to the conditions hereof and upon/of the terms and conditions of the loan agreements, overdraft agreement, mortgage deed, instrument of hypothecation, letter of pledge, demand promissory notes, promissory notes, receipts acknowledgement of debt and securities, personal guarantee and other guarantees and security, deeds and documents executed/to be executed provided/to be provided between/by the Borrower and/to the Bank ("Credit Facilities Documents"), for an amount of Rs. ____________/- (Rupees _______________________________________________only) an overdraft facility towards working capital for a sum of Rs._____________/- (Indian Rupees __________________________ only).

2. The Borrower hereby agrees and undertakes to execute all the Credit Facilities

Documents in the form and manner as may be required by the Bank from time to time. 3. The entire amount of the Credit Facility provided by the Bank to the Borrower along with

interest, fees, charges and expenses due thereon shall be repayable by the Borrower to the Bank in accordance with the provisions of the Credit Facility Documents.

4. Not withstanding anything to the contrary contained in this Agreement and/or any other

agreement executed/that may be executed between the Bank and the Borrower, and / or the Credit Facility Documents, the Credit Facility and all amounts outstanding there under are/shall always be payable by the borrower to the Bank forthwith on demand beind made by the Bank, which the Bank shall be entitled to make, without any cause or reason or default by the Borrower, at its sole and absolute discretion.

5. The Borrower shall execute and/or cause to be executed at its own cost and expense

such agreements, undertakings, instruments and forms as may be required by the Bank from time to time and in the form, manner and substance satisfactory to the Bank for

creation/perfection of any security/further security by way of mortgage, hypothecation or otherwise over the assets/properties belonging to the Borrower as the Bank may require, from time to time including without limitation mortgage over the immovable assets of the Borrower, hypothecation of the Products and book debts/ receivables in favour of the Bank.

6. RIL hereby represents, agrees, warrants and undertakes that unless the Bank expressly

otherwise authorize RIL in writing : i. RIL shall pay all amounts due and payable by RIL to the Borrower on account of

volume incentives (presently @ Rs.250/kl of all products for volumes in excess of 125 kl pm) and all other payments that may be paid/made by RIL to the Borrower by whatever name called (collectively called the "Dealer Dues"), directly to the account bearing no. _________________ of the Borrower maintained with the Bank (the "Dealer Account") or to such person or account as may be directed, in writing, by the Bank from time to time; Borrower hereby irrevocably agrees for such payment being made to Dealer account.

ii. RIL shall not terminate the dealership agreement with the Borrower for the Retail

Outlet or cease operations at the Retail Outlet unless written notice of such intention to terminate the dealership agreement has been given to the Bank simultaneously when RIL gives notice to the Dealer about termination.

iii. RIL shall not refund any part of the security deposit or any other deposit or amount

of any nature whatsoever to the Borrower except to such account and to such person (including the Bank) as may be required by the Bank and in the manner directed by the Bank in writing.

iv. RIL shall, in the event of termination of Dealership with Borrower, pay the amount

of rent for the Retail Outlet @ Rs.100/- per kl of all products or Rs.10,000/- per month whichever is more into the Dealer Account. The Bank shall be entitle d to appropriate this amount towards the outstanding amount due in respect of credit facilities.

v. RIL can modify any material terms and conditions of the Dealership agreement

only with prior consent of the Bank which consent shall not be unreasonably withheld. If the Bank does not respond to the notice of RIL to the Corporate Centre of SBI, seeking such consent within 10 days of notice seeking such consent, it will be deemed that SBI has consented for such modification.

vi. RIL shall not handover possession of the Retail Outlet to the Borrower (other than

as a dealer) except with the written permission of the Bank. 7. In the event the Bank intimates to RIL that the Borrower has committed any default

under the Credit Facility Documents and / or in repayment of any amount due and / or payable under the Credit Facility, and the said dealership agreement has not been terminated, RIL shall:

i. continue to supply the Products to the Borrower at RIL's normal sale price. ii. raise Debit Notes on the Borrower with each sales quantity @ Rs. 150 per kl of all

products for which the Borrower hereby expressly authorizes the RIL.

iii. pay the amount collected from the Borrower towards Debit Notes to the Bank or

such person or such account (including Dealer Account) as the Bank may direct, in writing, and the Bank shall be entitled to adjust the same towards the amount outstanding under the Credit Facilities.

8. In the event the Bank intimates to RIL that the Borrower has committed a default under

the Credit Facilities Documents and / or in repayment of any amount due and / or apyable under the Credit Facility and such default has not been rectified for a period of 3 (three) months and the Bank requests RIL to terminate the dealership agreement, RIL, no later than 30 (thirty) days from the date of receipt of notice in this regard from the Bank (such notice the "Default Notice"), shall stop supplying the Products to the Borrower and shall terminate the dealership agreement with the Borrower. The decision of the Bank as to whether the Borrower has defaulted or not shall be final and binding upon RIl and the Borrower.

9. That in the event RIl terminates or proposes to terminate the dealership agreement with

the Borrower, for any reason other than in accordance with Clause 8, RIL shall intimate such termination to Bank simultaneously when RIL give notic eto Dealer about terminate of the dealership.

10. That upon the termination or expiry of the dealership agreement/dealership of the

Borrower, for any reason, including in terms of Clause 8 and / or 9 above. i. All amounts outstanding under the Credit Facilities shall forthwith become due and

payable sby the Borrower to the Bank ii. RIL shall pay all the amounts payable by RIL to the Borrower (including Security

Deposit), on whatsoever account, net of RIL's dues till the date of termination or beyond, directly to the Bank or the Dealer Account as may be required by the Bank in writing.

iii. RIL shall provide all assistance to the Bank to enforce/foreclose the mortgage over

the retail Outlet and hypothecation over the Products in favour of the Bank. iv. Upon successful enforcement/foreclosure of the mortgage by Bank, if the Retail

Outlet is to be sold in pursuance of the enforcement of mortgage of the Bank over the retail Outlet in favour of the bank, RIL agrees to purchase the same at the value not less than amount outstanding under the Credit Facilities plus maximum three month interest (excluding overdue interest and penalty), and to apy the said amounts to be Bank.

The said period of 3 months shall commence from the date on which the entire amount

under the term loan becomes due and payable by the borrower to the Bank, pursuant to the acceleration of the term loan by the Bank, as per the terms of the Credit Facilities document or otherwise. It is understood by the parties that the enforcement/foreclosure of the mortgage shall be through Court of law / DRT and RIL shall be entitled to purchase the said retail outlet which includes landk, building and machinery/equipments, if the Corut/DRT/its official permit/allow RIL to purchase the same and in respect of such sale to RIL, the cost of the sale i.e. Stamp Duty and Registration Charges etc. shall be borne by RIL. However, RIL shall make all efforts to purchase the same through Court/DRT for the value not less than stated above.

Notwithstanding anything to the contrary contained in the Dealership Agreement, Lease

Deed or any other agreement or understanding that may be executed or reached not or at any time in future, between the borrower and RIl, RIL hereby agrees that the Lease Deed shall stand terminated in the event of failure of the RIL to remedy breach under this clause within a period of thirty days from the date of the notice in wirting from Bank informing RIL of any breach of this agreement or default of RIL observing any of the above terms and conditions of this agreement. Such termination of the lease deed will entitle the Bank to enforce the mortgage free of any encumbrances rights created in favour of RIL and sale of the said land, building and equipment/machinery owned by Borrower will be without the leasehold rights in favour of RIL, and the purchaser will get good title to the said land, building, machinery/ equipment, when the said mortgage is enforced by the Bank.

11. The Borrower hereby confirms that on termination of dealership agreement / dealership

of the Borrower, the Borrower shall sell all the Products then lying in stock to RIL at the price the same were supplied to it by RIL less any commission/incentive paid thereon to the Borrower by RIL and all amounts payable by RIL to the Borrower for the same shall be paid by RIL to the Bank.

12. That in the event, the Borrower has committed a default under the Credit Facilities

Documents and / or in repayment of any amount due and / or payable under the Credit Facility and / or on termination or expiry of the dealership agreement, the Bank shall be fully and duly entitled to enforce the mortgage over the Retail Outlet as well as any and all other security that may be provided for the Credit Facilities by the Borrower and / or any other person and RIL will assist the Bank in enforcement of such security.

13. RIL hereby agrees and undertakes that RIL shall act on the undertakings given herein

above notwithstanding any contrary instructions issued by the Borrower in this regard. 14. In consideration of the Credit Facility being granted by the Bank to the Borrower, the

Borrower hereby irrevocably and absolutely represents, warrants, convenants and undertakes with the Bank and RIL that :

i. The Borrower is the absolute and sole owner of the said Land and the said Land

is in its lawful possession and the said land is free from all encumbrances,

mortgages, liens, arrangements, injunctions, notifications, acquisitions, prior

agreements to sell, prior sales/leases and it is free to deal with the said Land in any

manner it may deem fit;

ii. The original of title deeds of the said Land are in lawful possession of the Borrower

and the Borrower shall deposit the same with the Bank with an intent to create mortgage over the said Land in favour of the Bank, on or before the disbursal of any amount under the Credit Facilities or as may bee otherwise agreed by the Bank;

iii. The Borrower shall create mortgage over the said Land and all construction and improvements made thereon and machinery affixed to the earth thereat from time to time shall also stand mortgaged in favour of the Bank. However such mortgage shall not extend to any equipment belonging to RIL'

iv. The Borrower shall keep the Retail Outlet i.e. the said Land and construction, and

improvements made thereon and machinery affixed to the earth thereat and the Products fully and comprehensively insured at all times, with the Bank as the Loss payee;

v. The said Land can be used for setting up the Retail Outlet; vi. The Borrower confirms and certifies that though the Borrower is the owner of the

said Land and shall also carry out construction thereon but since the said Land and the construction thereon has been/shall be leased by the Borrower to RIL, the Borrower is and shall at all times be using and occupying the Retail Outlet as a user and at the will and pleasure of RIL and forthwith on receipt of any notice by RIL, the Borrower shall remove itself and all its employees and representatives from the Retail Outlet, without any demur, protest and delay. Provided always on such removal Borrower shall not remove any of the equipment belonging to RIL or any of its furniture, improvements, stocks, stocks of Products, equipment, items, records, and the like, and shall leave the same as on the date of receipt of the said notice from RIL;

vii. The Borrower irrevocably directs, instructs and authorizes RIL to do all acts, deeds

and things as RIL is required to do in accordance with this Agreement including but not limited to termination of the Dealership Agreement and credit the amount of Dealer Dues only to the Dealer Account or any other account or pay the same to such person (including the Bank) or as may be directed, in writing, by the Bank from time to time, and in no other manner notwithstanding anything contrary contained in this Agreement and/or the dealership agreement and/or any other agreement/document that may be executed now or in future by / between RIL and the Borrower.

viii. The Bank, without prejudice to any of its other rights, shall be entitled to restrict

and/or prohibit the Borrower from operating and/or making any withdrawals from the Dealer Account, without any prior or post notice to the Borrower, as and when the Bank may so deem fit, at its sole and absolute discretion, and from time to time and the Bank shall not be liable for dishonour of any cheque/payment instrument/instruction resulting from such restruction and / or prohibition.

ix. The Borrower shall under no circumstances discontinue operations at the Retial

Outlet unless the dealership agreement is first terminated by RIL; x. The Borrower hereby irrevocably authorizes RIL to do all acts, deeds and things in

accordance with the terms hereof, notwithstanding anyinstructions to the contrary that it may have given/may give in future, to RIL;

xi. In the event Default Notice has been served by the Bank on RIL, any Products, for

which payment has been made by the Borrower to RIL but not supplied by RIL, RIL shall not supply the same to the Borrower and shall hand over such payment directly and only to the Bank;

15. Until credit facility/any of the Credit Facilities are available to the Borrower and till all

amounts there under or arising there from have been paid in full to the Bank, to the satisfaction of the Bank, the Bank shall have a first and paramount lien and a right of set-off on all bank balances, including but not limited to amounts lying in the Dealer Account, fixed deposits with the Bank, property, assets and the like of the Borrower that are or may come into possession of the Bank from time to time, irrespective of them or any one or more of them being held in safe custody by the Bank or otherwise, and the Bank shall also have a right to get any or all of them registered in the name of the Bank or its nominees.

16. The term of this Agreement shall come into force from the date of this Agreement and

shall continue in full force and effect till such time any amount remains outstanding under the Credit Facility or the Credit Facility remains available to the Borrower.

17. This Agreement shall not be amended, altered or modified expect b y an instrument in

writing expressly referring to this Agreement and signed by all the parties hereto. 18. If at any time, any provision of this Agreement is or becomes illegal, invalid or

unenforceable under the applicable law or judicial/administrative / governmental directions, neither the legality, validity nor enforceability of the remaining provisions of this Agreement shall in any way be affected or impaired thereby.

19. All approvals internal and corporate have been taken by the Borrower for availing of the

Credit Facility and for execution of this Agreement and the Credit Facility Documents and creation of mortgage over the said Land and creation of security over its other assets.

20. The provisions of this agreement are without prejudice to any right that the Bank

has/may have, to recover its dues outstanding under the Credit Facility from the Borrower and/or to enforce the security created/that may be created in favour of the Bank, in accordance with the Credit Facility Documents and/or in law.

21. Notwithstanding anything to the contrary contained in the Dealership Agreement or the

Lease Deed or any other agreement or understanding that may be executed or reached, now or at any time in future between the Borrower and RIL, RIL and the Borrower shall act in accordance with the terms of this agreement.

IN WITNESS WHEREOF the parties hereto have caused this Agreement to be executed the day, month and year first above written. Signed and Delivered by the Bank Signed & Delivered by RIL through through Authorized Signatory Mr. ________ Authorized Signatory Mr. ___________ Signed & Delivered by the Borrower through

Authorized Signatory Mr. ________ Signed & Delivered by the Land Owner through Authorized Signatory Mr. ________

DEALER FINANCING Tie-up with Bharat Petroleum Corporation Limited (BPCL)

To Extend Working Capital Facility for Petroleum Dealers BPCL is engaged in the business of refining and distribution of petroleum products through its 6000 strong network of petroleum dealers. Bank has entered into a tie up with BPCL to provide working capital finance to all their dealers. 02. According to BPCL most of these dealers are under stocking resulting in inefficiencies in supply chain. A major reason for this has been cited as lack of credit. This presents us with an opportunity to extend finance and garner significant business. Each of these dealers requires funding for 3 to 5 days of stocks, i.e. Rs.10.00 lakhs approximately, on an average. 03. BPCL would circulate the terms and conditions of the arrangement and schedule of charges (attached herewith as Annexure-I and Annexure-II respectively) to all its dealers. Under the tie-up, BPCL shall extend the following comforts to the Bank: a) Provide duly filled up “Opinion Report cum Comfort Letter” (format attached

herewith as Annexure-III) for every Petroleum Dealer willing to take finance from SBI.

b) Intimate SBI about termination of a Petroleum Dealer’s dealership or any other disciplinary action against a petroleum dealer like suspension, as soon as the decision is taken about it. Such intimation shall take place by writing letter simultaneously to the financing branch and Local Head Office of SBI.

c) In case of petroleum dealers availing working capital limit from SBI, BPCL will not supply goods on credit basis, either partly or fully and such supplies will be made against advance payment only.

d) In case of default by Petroleum Dealers (default shall be defined as inactivation of account or non-payment of interest for more than 30 days), BPCL will make future supplies to the dealer only if payments are received by BPCL in advance from the cash credit account of borrower with SBI, BPCL shall put moral pressure on Petroleum Dealer to pay back his over dues and reactivate the account with the bank.

e) In the event of default by the Petroleum Dealer (the letter addressed by the bank to the BPCL as to default by the dealer in making payment of dues etc is sufficient conclusive proof of default by the Petroleum Dealer and BPCL shall undertake all such activities required of BPCL to help recover the dues), Bank will seize such goods of dealers financed by bank and BPCL shall purchase the said seized goods from bank, subject to the goods meeting the quality parameters, at realizable price.

f) Not withstanding anything contained in the agreement between BPCL and the Petroleum Dealer, BPCL undertakes, in case of default and or termination of such dealership, not to repay any dues (such dues shall include security deposit also) to the borrower without taking prior approval of Bank. BPCL would make all such amount available to the financing branch of Bank towards recovery of dues, if any, after setting off all moneys due to BPCL.

04. As the ticket size of loans will be less than Rs.25.00 lacs, there will be no need for carrying out CRA for such loans. For all limits above Rs.25.00 lacs CRA exercise has to be carried out as per extant instructions. The limits can be sanctioned based on their present turnover and inbuilt cushion of 25% (explained in Annexure-I), so as to account for price increases. Such limits can be availed by the customers both as Fund or Non Fund Based limits or a combination of both, subject to the exposure being taken are within the overall sanctioned limits. All documents as per SME Documentation should be obtained and KYC norms duly complied with. 05. In cases where CRA exercise has been carried out the interest rates to be charged are as follows:

Rating as per CRA Interest Rates to be Charged SB 1 and SB 2 0.75% below SBAR, currently 10.00% p.a. SB 3 and SB 4 0.25% below SBAR, currently 11.00% p.a. SB 5 0.75% below SBAR, currently 11.50% p.a. 06. All proposals under the tie-up will be handled by SECC/SMECC as the case may be, where such processing centres are established. This will apply irrespective of turnover being higher than stipulated Rs.25.00 crores. A simplified application form is attached herewith as Annexure IV. A format for carrying out appraisal and the interest rate matrix for arriving at relevant interest rates is attached herewith as Annexure V. 07. The applicable interest rate for such loans can be decided by using the following simple matrix:

Opinion Report on Cheques Return

Adverse Opinion Report on Quality

Standards

Interest Rates (Floating-Linked to

SBAR) Never Never 0.75% below SBAR

i.e.10.00% p.a. Never Upto twice a Year 0.25% below SBAR

i.e.11.00% p.a. Upto twice a year Never 0.25% below SBAR

i.e.11.00% p.a. Upto twice a year Upto twice a year 0.75% below SBAR

i.e.11.50% p.a. Upto twice a year More than twice a year Not eligible Never More than twice a year Not eligible More than twice a year Never Not eligible More than twice a year Upto twice a year Not eligible More than twice a year More than twice a year Not eligible The data required for above calculation, is a part of the Corporate Opinion Report to be provided by BPCL and as such the branches need not collect this data. The detailed format is attached herewith as Annexure-II.

08. Based on the above, cash credit accounts for the Petroleum Dealers in the area of operations of the Circle may be opened in appropriate branches as per convenience of the dealers. Wherever, the branch is CINB enabled, internet banking facilities should be extended to the dealer which will enable him make free remittances to BPCL. Special care should be taken to ensure that payments from the cash credit account can only be made to designated BPCL account maintained with Bank. This restriction will be applicable irrespective of whether payment is being made using CINB or through cheques or drafts or STEPS. The designated account of BPCL in which payment is to be made will be intimated in due course. 09. In case of default by the Dealer (default shall be defined as inactivation of account or non-payment of interest for more than 30 days), the branch should immediately inform the local office of BPCL and SME BU at LHO. Under the arrangement, on intimation, BPCL shall restrict supplies to dealer. They will affect supply only against payment received from designated Branch of SBI where the dealer’s account is parked. 10. In such cases, dealers would first be forced to regularize their account by making deposits into their loan account. From the deposits so made, branch can deduct up to 25% towards adjustment of irregularities in the account and make available 75% for remittance of BPCL towards further supplies. Once the account becomes normal, regular operations can be permitted. 11. In case a dealer defaults twice, the Branch should endeavour to discontinue the borrowing arrangement by asking the dealer to close the account. Intimation about the proposed plan of action should be sent to BPCL and SME BU at LHO. ****************************************************************************************

WORKING CAPITAL FINANCE TO DEALERS OF BHARAT PETROLEUM CORPORATION LIMITED Purpose To provide working capital facility to Petroleum Dealers Nature of facilities Cash Credit Segment SME Eligible amount of finance

Upto 80% of working capital requirements for stocks/advances paid for stocks. Assessment would be based on 5 to 7 days of turnover taking into account the past turnover of the dealer with 25% cushion for price increase. Past turnover will be made available by BPCL as a part of Corporate Opinion Report.

Repayment On demand, renewal every year. Sanctioning Authority

As per scheme of delegation of financial powers for working capital

Rate of interest Interest rates within the band of 10.00% p.a. (currently 0.75% below SABAR, minimum 10.00%) to 11.50% p.a. (currently 0.75% above SBAR) with monthly rests. In case, at least 50% collateral can be provided by the dealer, the interest rate can be reduced on a case to case basis by 50 basis points from their eligible interest rates, subject to a lower limit of 9.50% linked to SBAR with monthly rests. In case, the interest is not paid by the dealer within the period of 15 days, enhanced interest at the rate of 2% will be levied from the 16th day onwards with monthly rests.

Margin 20% Security a) Primary : Hypothecation of stock/s other assets of

the Petroleum Dealer b) Collateral / Guarantees : Personal Guarantee of

dealers Tenure 15 days Insurance The assets created out of Bank’s finance are to be

insured for full market value, against all risks. Documentation Revised SME Documents Review As per Bank’s extant instructions Processing charges Rs.300/- per lac to be paid in the first year and on

renewal every year. Others BPCL will provide “Opinion Report cum Comfort Letter”

and other support as detailed earlier. Remittance Charges • Nil for payment through e-banking platform of SBI

• Rs.100/- transfer when payment made by STEPS • In case of remittances through any other mode,

normal charges of SBI are applicable. However, the branch where the dealer avails the channel

financing facility, at its sole discretion, may reduce/waive the same.

Cash handling charges

• For dealers availing OD upto Rs.5 lacs – Free upto Rs.1 lac/day and Rs.20/lac thereafter

• For dealers availing OD more than Rs.5 lacs – Free upto Rs.3 lac / day and Rs.20/ lac thereafter.

Back to Index

Annexure III Opinion Report Cum Comfort letter (on Letter Head of BPCL)

1. Name and address of dealer 2. Name of key persons and their designations 3. Territory assigned to dealer 4. Year of appointment of dealer 5. Identification Code 6. Range of products stored (please tick)

a. Diesel b. Lubes c. Petrol d. Others (Please specify) ……………………….

Sales through dealer (last two years and current year till date) Brand Name

Unit Sales (Year till date)

31.03.2006 31.03.2005

Qty in KL Diesel Value (Rs.Million) Qty in KL Petrol Value (Rs.Million) Qty in KL Lubes Value (Rs.Million) Qty in KL Others Value (Rs.Million)

7. Conduct of Dealer (Past 12 months) Cheque returns (Please tick) More than twice a year Upto twice a year Never Delay in Payments (Please tick) More than twice a year Upto twice a year Never Quality related issued (include events like notices for poor quality/adulteration, temporary suspension) More than twice a year Upto twice a year Never 8. Limits recommended (Final decision as per bank’s policy) 9. Peak Limits recommended (Final decision as per bank’s policy) We hereby confirm that the information given above is true to the best of our knowledge and shall be treated strictly private and confidential and without any liability on the part of Company for any credit decision taken by bank and accept the terms and conditions as started in MOU signed by Bank and BPCL dated : Name of the Authorised Official : Mr/Mrs _____________________________ Signature

Designation _________________________ Date : Office Stamp and Seal

Annexure IV STATE BANK OF INDIA

…………………. BRANCH

APPLICATION CUM INTERVIEW FORM FOR FINANCING OF WORKING CAPITAL FACILITY TO THE PETROLEUM DEALERS OF BHARAT PETROLEUM CORPORATION LTD (BPCL) UNDER SBI-BPCL TIE UP ARRANGEMENT. 1. Name of the unit

Identification Code :

2. Address of the unit Ph. No: Fax No. Email / Website

Premises owned/returned

3. Address of Regd. Office in case of Corporates

Premises owned/returned

4. Address for correspondence Ph. No. Fax No. E-mail / Website

5. Other business, if any

6. Year of Commencement of Business

7. Experience in the line of activity

8. Constitution

DETAILS OF PROPRIETOR / PARTNERS / DIRECTORS

Name & Age PAN Residential Phone / Net

Qualification Address Mobile Worth (Opinion report on the bank’s prescribed format should be prepared) DETAILS OF EXISTING BANKING ARRANGEMENTS

Name of the Bank/Branch

Faciliity Limit Outstanding Banking since

DETAILS OF ASSOCIATE/SISTER/IDENTICAL FIRMS

Name of the unit

Name of the Prop/partners

Banking with

Limit Outstanding

Particulars of registration under Shops & Establishment Act/Sales Tax Act / Any other Act.

Position regarding Statutory Assessment Under IT/Sales Tax/Any other Year upto which assessment completed

Distance of the unit from the distribution point

k.m.

Mode of Transportation Storate Capacity of the Unit No. of tanks –

k.l. Mode of payment to BPCL (please specify)

TERMS OF SALES % of Credit sales to total sales

Period of Credit given Months

Average level of receivables Rs.

Range of products : a. Diesel b. Lubes c. Petrol d. others(Please specify)

Unit Sales Brand Name 31.03.05 (A) 31.03.06(A) 31.03.07(E) Qty in KL

Diesel

Value (Rs)

Qty in KL

Petrol

Value (Rs)

Qty in KL

Lubes

Value (Rs)

Qty in KL

Others

Value (Rs)

CREDIT FACILITIES REQUIRED Fund based Limit required Peak limit required (if any) Cash Credit DETAILS OF SECURITY OFFERED Primary

Colleteral

IMMOVABLE PROPERTY Description of Property

Name of the Owner

Value of the Property

Basis of valuation

(Rs./lacs) LIQUID SECURITIES Description Name of the

Owner Face Value When

acquired Present value

LIQUID SECURITIES

Name of the Guarantor & Address

Age Qualification Net worth Banking with

I/We declare that the information given in the application form are true, correct and complete and that they shall from the basis of any kind of facility State Bank of India may decide to extend to me/us. I/We shall furnish all other information that may be required by the Bank in connection with my application. The information may also be exchanged by you with any agency you may deem fit. You may take appropriate safe guards/action for recovery of bank dues including publication of defaulters names in website/submission to RBI. I/We confirm that I/we have no borrowing arrangements for the unit with any bank except those indicated in the application. I/We confirm that I/We are not defaulter of any bank/any financial institution. I/We confirm that there are no over dues / statutory dues owned by me/us and I/We have/had no insolvency proceedings against me/us not have I/we ever been adjudicated insolvent. I/we undertake to abide by the Rules and Regulations of State Bank of India in respect of the facilities being extended to me/us. Date : Place :

Signature of the Borrower

Name of the interviewing Official Designation :

LIST OF DOCUMENTS TO BE ATTACHED

1. Partnership deed in original (to be returned) and a copy thereof 2. Memorandum & Articles of Association with Certificate of incorporation in original

(to be returned) and copies thereof. 3. Copies of the balance sheet (s) of the firm / company for past three years 4. Latest copy of Income tax, sales tax assessment order etc. 5. Statement of account from the existing banker for last 3 months 6. Photocopies of PAN card of partners / Directors wherever available 7. Statement of personal assets and liabilities of proprietor / partners / directors /

guarantors 8. 2 copies of photographs of proprietor / directors / partners 9. Copies of the relevant license / statutory clearances, documents pertaining to

ownership / Tenancy / lease agreement in respect of premises where activity will be carried out / Service or trade related agreements etc.

10. Copy of Title deeds relating to collateral security being offered.

Annexure V APPRAISAL

Segment : SBF/C&I Sector : Priority / non priority

Name of the unit / borrower : Assessment of Working Capital (Cash Credit)

1. Performance and Profitability

(Rs.in lacs) Years 31.03.05(A) 31.03.06(A) 31.03.07(E)

(a) Sales / Income

(b) Other income

% increase in ‘a’

c) Net profit

d) Depreciation

e) Cash Accruals (d + e)

f) NWC

g) Current Ratio

Note : Where the dealearship is not generating adequate profit, appraising official should examine the feasibility of the unit before recommending the limit.

WORKING CAPITAL REQUIREMENT a) Estimated Annual Turnover : Petrol Diesel Lubes#

b) Required working capital (5 to 7 days average turnover) @ For Petrol/Diesel #for Lubes

c) Add cushion for price increases

d) Total Working Capital requirement (b+c)

e) Borrower’s margin – 20%

f) Eligible Bank finance (d-e)

g) Recommended limit

@ Depending on the distance of the unit from the delivery point # For arriving at the finance needed for stocking lubes, the period may range from 1 month to 45 days, depending upon past trends. Terms and conditions of Sanction I. SECURITY Primary

Collateral

Guarantee Name Net worth (as on )

II. OTHER TERMS AND CONDITIONS: Rate of Interest (as per matrix)

Margin (20%)

Tenure 15 days

Insurance The assets created out of Bank’s finance are

to be insured for full market value, against all risks

Review

Documentation

Processing charges

Others Opinion report cum comfort letter from BPCL

Submission of stock statements

Inspection

Remittance Charges

Cash handling charges

Concessions in service charges (if any)

Remarks :

Appraised by Assessed by Sanctioned by Signature : Name : Designation : Branch : Date :

RISK MATRIX FOR APPLICABLE INTEREST RATE Name of the Unit/Borrower : Opinion report

on cheques return

Adverse opinion report on quality

standards

Interest rates (Floating-linked to

SBAR)

Applicable rate

Never Never 0.75% below SBAR i.e. 10.00% p.a.

Never Upto twice a year 0.25% below SBAR i.e. 11.00% p.a.

Upto twice a year Never 0.25% below SBAR i.e. 11.00% p.a.

Upto twice a year Upto twice a year 0.75% below SBAR i.e. 11.00% p.a.

Upto twice a year More than twice a year

Not Eligible

Never More than twice a year

Not Eligible

More than twice a year

Never Not Eligible


Upto twice a year Not Eligible



Not Eligible

Pricing (as per Matrix) : Available Collateral Security : ( % of loan amount) ____________________________ Effective Interest rate : Note : Interest rate can be reduced by 50 basis points if collateral securities are available at least 50% of the loan amount. Share of SBI in inventory funding

Share of SBI as % of total cash credit limit for inventory financing of dealer If 100% is funded by SBI - 20 marks If 75% or more is funded by SBI - 15 marks If 50% or more is funded by SBI - 10 marks If 25% or more is funded by SBI - 5 marks If less than 25% is funded by SBI - 0 marks Score Interest Rate (at SBAR of 11%) 80 or more Marks Minimum 9.50% p.a. (1.50% below

SBAR) linked to SBAR 60-79 Marks Minimum 10.00% p.a. (1.00% below

SBAR) linked to SBAR 40-59 Marks Minimum 10.50% p.a. (0.50% below

SBAR) linked to SBAR 20-39 Marks Minimum 11.00% p.a. (SBAR) linked

to SBAR Below 20 Marks Application to be rejected Annexure 4

• Last 12 months Sales

• Next 6 months projections

• Last 3 year Financials (Latest Yr + Last 2 Years Audited) with Schedules

• CA Certified Networth Statement of Directors / Partners

• MOA & AOA / Partnership Deed

• LOI issued by Manufacturer in case of a newly appointed dealership

Annexure 5 (On the Letterhead of borrowing company) Date : To : The Branch Manager, State Bank of India ……………………Branch Dear Sirs,

Distributor Financing Programme

We refer to your letter no _______________ dated _____________ and thank you for offereing us a credit facility under your Distributor Financing Programme to finance our purchases from Tata Motors Limited. We request you to make payments directly to the designated account to Tata Motors Limited as per the details of invoices provided by them through electronic form. I/We hereby confirm to pay to you all dues as per these invoice details raised by Tata Motors Limited on us on the agreed credit terms with you. We also confirm that all commercial disputes will be settled directly with Tata Motors Limited and we will pay SBI the full value of Invoices discounted. Yours faithfully, (Authorised Signatory with rubber stamp)

DOCTOR PLUS 1. Target Group

: Medical practitioners of any discipline, promoters of

hospitals, nursing homes, pathological clinics, polyclinics, X-ray labs, etc.

2 Eligibility

: Individuals, partnerships, corporates, 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

3 Purpose

: For purchase of equipment For setting up clinic, nursing home, path. Lab,

drug store, ambulances, computers, vehicles, etc. Expansion/ renovation of existing premises


: Medium Term Loan Cash Credit


: Maximum of Rs.5 crores of which a sub ceiling for working capital limits at

• 10% of total loan amount for upto Rs.1 crore • 5% % of total loan amount for above Rs.1 crore minimum Rs.10lacs Minimum DSCR 1:1.5

6 Margin

: Upto Rs. 5lacs : 10% Above Rs.5 lacs : 15% (can be reduced by 5% one authority higher than the sanctioning authority)

7 Rate of Interest

: Based on credit scoring model for loans upto Rs.25 lacs Based on CRA rating for loans beyond Rs.25 lacs.


- Collateral

: Hypothecation of assets financed by the Bank For Allopathic doctors – Upto Rs.15 lacs - Nil & Personal / third party guarantee of at least twice the loan amount - Above Rs.15lacs-Tangible security of at least 25% & Personal guarantee of promoters. For others – ayurvedic, unani, homeo-,etc. Upto Rs.10lacs - Nil & Personal / third party guarantee of at least twice the loan amount Above Rs.10lacs-Tangible security of at least 25% & Personal guarantee of promoters

9 Processing fees 0.5% of loan amount – minimum Rs.500/- & maximum Rs.50,000/-

10 Repayment Maximum – upto 7 years - Max. moratorium – 12 months 11 Documentation : As per SME documentation 12 Special features

: Eligibility as per credit scoring model – Minimum score – 50% for limits upto Rs.25 lacs For above Rs.25 lacs, CRA model is applicable

Disbursements can be made in instalments over a period of 24 months

Half yearly inspection is stipulated

Back to Index

CREDIT SCORING MODEL ( For loans upto Rs.25 lacs)

Name of the doctor/ company / firm -----------------------------------------------------------------

--- Name of the Chief promoter--------------------------------------------------------------------------------

(i) Personal details of chief promoter:

S.No. Parameter Criteria Marks Max. Marks

Marks Scored

1. Owning a house

Own 3 3

Owning a house with mortgage 2

Not owning 0

2. Academic qualification

Super specialist 5 5

PG / addl. Qualification 4

Graduate 3

3. Field of practice

Allopathy 5 5

Homeopathy 4

Ayurveda 3

Others (Unani etc.) 2

4. Experience / Practice

> 10years 6 6

5 – 10years 4

3 – 5 years 3

< 3 years 2

5. Spouse details

Medical practitioner 2 2

Employed 1

Not employed 0

6. Income tax Assessed 2 2

Not assessed 0

7. Life Insurance policy Yes 2 2 No 0 Total 25 ii) Business Scoring:

S.No. Parameter Criteria Marks Max. Marks

Marks scored

1. Premises Owned / leased for >5 yrs

3 3

Owned but mortgaged 2 Rented 1

2. Operating profit Continuous for > 3 yrs 5 5 (pre – tax) For 2 yrs 3 One for last yr

2

3. Income in rising trend

Last 3 years 5 5

Last 2 years 3 Last year 1

4. TOL /TNW (quasi-equi

< = 2 4 4

ty to be added to TNW

>2 & <=3 3

& reduced from TOL)

>3& <= 4 2

>4 & <=5 1

5. Repayment period Upto 5 years 5 3 – 5 years 4

5 – 10 years 2

6. DSCR >=2 5 5 >=1.5 & <2 4 >=1 & <1.5 2 <1 0

7. Value of collateral security of property In the case of cash, TDR, RD, Relief Bonds, NSCs, multiply by 2 and add to the collateral value

>=75% >=50% & <75% >=25% to < 50% <25% NIL

8 6 4 2 0

8

TOTAL 35

Loyalty: S.No. Parameter Criteria Marks Max.

marks Marks scored

8 Deposits Advances dealing with SBI / SB cards Bonus points for SBI customers

More than 5 years 3 – 5 years 1 – 3 years Upto one year HLs / PPF/TDR Rs. 5 lacs > one deposit/ advance prdct Availing any one product

5 3 2 1

5 4 3

10

Total 10

Interest rate matrix & financial decision for loans upto Rs.25 lacs

Score Interest Rate

65 & above 2.00% below SBAR 55 - 64 1.50% below SBAR 45 – 54 1.00% below SBAR 35 – 44 0.50% below SBAR Below No finance

*************************************************************

APPLICATION FOR DOCTOR (+) PLUS

Personal Details 1. Name of the Unit 2. Constitution Individual / Partnership/ Company

3. Address: Business

Telephone No. & Mobile Number

Address; Residential

Telephone / Mobile No. e-mail 4. Registration No. of Medical

Practitioner

5. Owning a house Own Own (not mortgaged) Not owning 6. Academic Qualifications

(medical fields) Graduate (MBBS/BMS/Other)

PG Specialisation 7. Spouse Detail Doctor Employed Not Working 8. Income Assessed Under IT Yes No 9. Taken Life Insurance Policy Yes No

10. Whether belongs to SC / ST Minority Community Male Female Ex-Service man 11. Banking with SBI

Details of Deposit A/c (Including SBI Card)

Since Loan A/c Since Loans Repaid 12. Description of activity 13. Experience in Medical Practice Over 10 years 5 – 10 yrs 3 – 5 years Less than 3 - 5 yrs 14. Premises where practice is done Owned Leased > 5 yrs (but mortgaged) Rented 15. Project Details Cost of Project Amount (Rs.) Means of Finance Amount (Rs.) Fixed Assets Working Capital Current Assets Term Loan Others 16. Track Record Year 1 Year 2 Year 3 Year 4 Year 5 Income Operating Profit (Pretax)

17. 18. Amount of Loan required

19. Repayment Period Upto 3 yrs 3-5 yrs 5-10 yrs 20. Collateral Value of Property (TDR

or cash equivalent is offered as security viz. RBI Relief Bond, NSC etc. multiply cash equivalent, by 2 and add to the collateral (value)

Rs.

% of loan

%

21. I / We Certify (i) all information furnished by me / us is true, correct and complete; (ii) I / We have no borrowing arrangement for the unit with any Bank as except indicated in the application; (iii) there are no over dues / statutory dues against me / us; (iv) No legal action has been taken against me / us (v) I / We shall furnish all other information all over information that may be required by Bank a connection with my application; (vi) the information may also be exchanged by you with any agency you may deem fit (vii) You, representatives of any other agency as authorized by you may at any time inspect verify my / our assets, books of account etc. in our business premise as given above (viii) You may take appropriate safeguards / action for recovery of Banks dues including publication of defaulters name in web site / submission to RBI, (ix) / We further agree that my / our loan shall be governed by the rules of State Bank of India which may be in force from time to time. Place : __________________ Date : __________________ Signature of Borrower (S) Documentary proof in the form of originals with self attested copies has to be produced for verification. Originals to be returned and attested copies filed along with application. Data to be attested and furnished only in respect of key promoter.

TOL TNW (Quasi equity to be added to TNW and reduced from TOL)

DSCR

SBI-SIEMENS MEDICAL EQUIPMENT PLUS

1. Target Group

: Prospective buyers will be identified by Siemens who will refer the buyers to the branches of SBI. These will be drawn from doctors in private practice, nursing homes, hospitals, diagnostic centres preferably those who are banking with us

2 Eligibility

: Individuals / partnerships / corporates / trusts Commercial viability will have to be established before sanctioning the loan. Due diligence should be done by the Branch manager before sanction of the loan.

3 Purpose

: To purchase medical equipment


: Term Loan


: The cost of equipment on offer by Siemens ranges between Rs.10 lacs to Rs.10 crs. Loans for non medical practitioners for purchase of equipment costing upto Rs.20lacs will be treated as SBF advance. Loans to medical practitioners whose borrowings do not exceed Rs.10 lacs in urban and metro centres and Rs.15 lacs in rural and semi-urban centres are also to be treated as SBF advances. Under this tie up arrangement, all loans upto Rs.25 lacs will be covered under the Doctor Plus scheme. Loans over Rs.25lacs will be considered under C&I segment and will be appraised as per the norms applicable to C&I advances. Provision for contingencies to the extent of 5% may also be considered on case to case basis. DSCR 1.75 Debt Equity 3:1

6 Margin

: 20%

7 Rate of Interest

: As per Doctor Plus scheme


- Collateral

: Hypothecation of assets financed by the Bank For loans upto Rs.10 lacs – NIL For loans over Rs.10 lacs – Tangible security for at least 50% of the loan amount

9 Processing fees Waived 10 Repayment

5 to 8 years including a moratorium period not exceeding 1 year

11 Documentation : As applicable to term loans in SBF / C&I segment

12 Special features

: Equipment covered Price range (Rs. in lacs) CT Scan 100 - 400 MRI Scan 200 – 650 Cathlab 220 – 330 Linear Accelerator 400 - 700 B&W ultra-sound 60 - 100 Colour Doppler 150 – 650 X – ray 20 – 350 Ventilator 80 – 130 Ultrasound scanner 15 - 40 Locations to be covered: New Delhi, Dehradun, Chandigarh, Patiala, Ludhiana, Kanpur, Lucknow, Jaipur, Jodhpur, Chennai, Bangalore, Hubli, Hyderabad, Visakhapatnam, Kakinada, Kochi, Trichy , Thrissur, Thiruvananthapuram, Coimbatore, Kolkatta, Patna, Bhubhaneswar, Ranchi, Mumbai, Goa, Nagpur, Pune, Indore, Ahmedabad, Vadodara Any other location can be added if required.


Siemens will identify and furnish application to SBI. SBI shall process the loan application and if found acceptable, the Bank will sanction the loan within 15 days and convey the sanction to the borrower and Siemens Thereafter, the borrower will have to complete documentation and margin requirements Siemens will then dispatch the equipment directly to the buyer/ borrower and forward proof of dispatch along with proforma invoice to the branch. The Bank will have to pay the amount directly to Siemens by means of a draft or Bankers Cheque within 3 days of receipt of the proof of dispatch.

Product highlights: Our Bank is the largest financier for medical practitioners and in order to maintain and further enhance our product profile to this segment of borrowers, the Bank has entered into a tie up arrangement with M/s. Siemens Ltd. which is in itself a globally recognized manufacturer of hitec medical equipment, for financing purchase of their products by medical practitioners, nursing homes, clinics, diagnostic centres, etc. Siemens will identify the prospective buyers and refer them to the Bank who will consider the proposals on merits and if found acceptable, will sanction the required term loan .the proceeds of the term loan , together with the margin money component will be directly forwarded to Siemens after the receipt of the equipment by the borrower within 3 days. Loans upto Rs.25lacswill be considered under Doctor plus scheme and for amounts above that C&I norms will apply.

Back to Index

SBI-DENTAL EQUIPMENT PLUS TIE UP with Confident Dental Equipment Ltd.

1. Target Group

: Qualified dentists with a minimum of BDS degree and qualified to practice as a medical practitioner

2 Eligibility

: Individuals / partnerships / corporates / trusts Commercial viability will have to be established before sanctioning the loan. Due diligence should be done by the Branch Manager before sanction of the loan.

3 Purpose

: To purchase medical equipment required for dentistry


: Term Loan


: Rs.10 lacs maximum DSCR 1.5

6 Margin

: Upto Rs.25000/- nil Upto Rs.5lacs 10% Over Rs.5 lacs 20%

7 Rate of Interest

: Repayable below 3 yrs

Repayable beyond 3 yrs

Upto Rs.50000/-

1.75%below SBAR

1.25%below SBAR

Above Rs.50000/- upto 2 lacs

1.25%below SBAR

0.75%below SBAR

Above Rs.2 lacs upto Rs.5 lacs

1%below SBAR

0.50% below SBAR

Above Rs.5 lacs and upto Rs.10 lacs

SBAR 0.50% above SBAR

8 Security:

- Primary

- Collateral

: Hypothecation of assets financed by the Bank NIL

9 Processing fees Waived 10 Repayment

5 to 10 years including the moratorium period not exceeding 1year

11 Documentation : As per simplified SME Documentation

12 Special features

: The loan will be based on a simplified scoring model with 60% as the minimum score for qualifying for the loan

A discount of 5 % is being offered by the Supplier An extended warranty period of 18 months is also

made available under this package Inspection can be at half yearly intervals


The Company will identify and furnish application to SBI. SBI shall process the loan application and if found acceptable, the Bank will sanction the loan within 15 days and convey the sanction to the borrower and equipment supplier

Product highlights: Our Bank is the largest financier for medical practitioners and in order to maintain and further enhance our product profile to this segment of borrowers, the Bank has entered into a tie up arrangement with M/s Confident Dental Equipment Ltd. for financing purchase of their products by medical practitioners, nursing homes, clinics, diagnostic centres, etc. The Company will identify the prospective buyers and refer them to the Bank who will consider the proposals on merits and if found acceptable, will sanction the required term loan .the proceeds of the term loan, together with the margin money component will be directly forwarded to the Company after the receipt of the equipment by the borrower within 3 days. Marketing tips:

M/s Confident Dental Equipment Ltd. will identify the prospective buyer / borrower and it is expected that we process the applications within 15 days

of receipt.

Back to Index

TIE – UP WITH APOLLO HEALTH AND LIFESTYLE LTD.

1. Target Group

: Proposed franchisees of Apollo Health and Lifestyle Ltd. projected to be around 200 clinics to be set up across the country in the next 12 to 18 months

2 Eligibility

: A special risk model has been devised for assessing the eligibility of a proposed clinic based on which the proposals will be taken up for financing.

3 Purpose

: To finance franchisees of Apollo Health and Lifestyle Ltd. for setting up Apollo clinics as per the integrated model to offer Specialist consultation, Diagnostics, Preventive health checks, a 24 hour pharmacy, etc., all under one roof.

4 Type of facilities : Term Loan and Cash Credit

5 Quantum of Finance : No cap

6 Margin : 33.33% for term Loan and 25% for Cash Credit

7 Rate of Interest

: 1.25% below SBAR floating with a minimum of 9% p.a. for both TL and CC. CGM of Circle has the discretion to reduce the interest rate to 1.25% below SBAR with a minimum of 8.50% p.a. with monthly rests for TL repayable in 7 years.


- Collateral

: Hypothecation of stocks and assets of the clinic i)Collateral for a minimum of 50% of the Term Loan ii)Personal guarantees of promoters

9 Processing fees 0.25% of the TL and Rs.250/- per lac for CC limit

10 Repayment

Maximum of 20 quarterly instalments excluding a moratorium of 12 months from the date of first disbursement

11 Documentation : As per revised C&I documentation

12 Special features

: Bank has entered into an MOU with Apollo Health and Lifestyle(AH&LL) to finance their franchisees for setting up integrated clinics. AH&LL will follow stringent due diligence procedure based on the following parameters ;-

Reputation of the key promoters Personal wealth and contribution as equity

Business acumen of the promoter Experience of the promoter in healthcare Population per clinic in the town Location of the clinic

Proposals have to be subjected to risk analysis on the prescribed matrix and categorized into one of three categories namely, Extremely Satisfactory(A), Satisfactory(B) and Not satisfactory(C).A and B category proposals can be taken up for detailed appraisal as per CRA model on usual lines. Inspection to be undertaken at monthly intervals Insurance to be obtained for all assets financed by the Bank for full value and for all risks

Product Highlights: This product is a unique package for increasing our exposure to the healthcare sector in a big way. The MOU with AH&LL envisages that the Apollo franchisees are chosen by AH&LL after stringent due diligence which will be shared with the Bank. Thereafter, the proposal will have to be vetted for Risk assessment on the specially designed format and only if found acceptable, the detailed appraisal will have to be taken up. Both TL and CC can be sanctioned as per need and if the CRA rating is at least SB4/SBTL4. Marketing Tips: While the proposed Apollo clinics will provide ample scope for finance, the scope for cross-selling of our other products such as Import LCs, Insurance for equipment through our tie-ups with GIC, Medi–plus schemes for eligible patients, etc.

FAQs

Can we entertain proposals directly without routing through AH&LL? It is advisable to have the proposal vetted and recommended by the Apollo to enable them to do due diligence regarding the capability of the promoters to start such a clinic both on financial and technical aspects

Can we entertain proposals with the financials of the project being either for a lower value or higher value? Yes. The project will have to be checked for financial viability to ensure prompt repayment of instalments and interest.

Back to Index

State Bank of India ______________________ branch

Application cum interview form for financing of Apollo Clinics Name of the Unit

Address of the Unit Phone No. Fax No. Email / website

Premises Owned / Rented

Address of reg. Office In case of Corporate




Other services being provided Year of commencement of business Experience in the line of activity Constitution Details of reconstitution in the past three years

Details of Proprietor / Partners / Directors Name & Qualification

Age PAN Residential Address

Ph No / Mobile

Net Worth *

* Opinion report on the bank’s prescribed format should be prepared. Details of existing banking arrangements :

Name of the Bank / branch


Details of Associate / Sister / Identical Firms : Name of the unit

Name(s) of pro/partners


Details of registration under Shops & Establishment Act / Sales tax Act / Any other Act.

Position regarding Statutory assessment under IT / Sales tax / Any other Year upto which assessment completed.

Credit facilities required Fund based Limit required Non fund based Limit required Cash Credit (incl. of Bill / Chq purchases)

Letters of Credit if any,

Term Loan Bank guarantees, if any

Total Total For term loans – Details of assets to be acquired (pl. enclose detailed list if necessary)

Description Details of the supplier

Cost Time schedule for completion

Need for the proposed expenditure Cost Amount Means Amount Land & Building Own funds Equipment (proforma invoice to be enclosed)


Other assets Bank loan Total Total Any other information : (Including specific reasons for Letter of Credit / Bank Guarantee / etc…) Performance Parameters Post / projects Past three years

Projections

31.3 31.3 31.3 31.3 31.3 Sales /

income

Net Profit Depreciation Cash

Accrual

Tangible Net Worth

TOL / TNW DSCR For term loans, please enclose projected profitability statements covering the period of repayment Details of Security offered Primary Collateral (i) Immovable property

Description of property

Name of the Owner Value of the property

Basis of Valuation

(ii) Liquid securities Description Name of the

owner Face Value When Acquired Present value

Details of Guarantor Where applicable Name of the Guarantor & address


I/We declare that the information given in the application form are true, correct and complete and that they shall form the basis of any kind of facility State Bank of India may decide to extend to me / us. I / we shall furnish all other information that may be required by bank in connection with my application. The information may also be exchanged by you with any agency you may deem fit. You may take appropriate safe guards / action for recovery of bank dues including publication of defaulters names in website / submission to RBI. I/We confirm that I/we have no borrowing arrangements for the unit with any bank except those indicated in the application. I / We confirm that I / We are not defaulters of any Bank / any financial Institution. I / We also confirm that there are no overdues / statutory dues owed by me / us and that I / We have / had no insolvency proceedings against me / us nor have I / we ever been adjudicated insolvent. I / We undertake to abide by the Rules and Regulations of State Bank of India in respect of the facilities being extended to me / us.

Signature of Borrower Date : Name of the Interviewing Official Place :


Application cum interview form for financing of Apollo Clinics Name of the Unit Address of the Unit Phone No. Fax No. Email / website









Ph No / Mobile

Net Worth *

* Opinion report on the bank’s prescribed format should be prepared.

Details of existing banking arrangements : Name of the Bank / branch










Total Total

For term loans – Details of assets to be acquired (pl. enclose detailed list if necessary) Description Details of the


completion Need for the proposed expenditure Cost Amount Means Amount Land & Building Own funds Equipment (proforma invoice to be enclosed)


Other assets Bank loan Total Total Any other information : (Including specific reasons for Letter of Credit / Bank Guarantee / etc…)

Performance Parameters Post / projects Past three years

Projections

31.3 31.3 31.3 31.3 31.3 Sales /

income


Accrual

Tangible Net Worth

TOL / TNW DSCR For term loans, please enclose projected profitability statements covering the period of repayment Details of Security offered Primary Collateral (i) Immovable property Description of property


Basis of Valuation








Application cum interview form for financing of Apollo Clinics Name of the Unit Address of the Unit Phone No. Fax No. Email / website









Ph No / Mobile

Net Worth *












Total Total For term loans – Details of assets to be acquired (pl. enclose detailed list if necessary)

Description Details of the supplier

Cost Time schedule for completion

Need for the proposed expenditure Cost Amount Means Amount Land & Building Own funds Equipment (proforma invoice to be enclosed)


Other assets Bank loan Total Total Any other information : (Including specific reasons for Letter of Credit / Bank Guarantee / etc…) Performance Parameters Post / projects Past three years

Projections

31.3 31.3 31.3 31.3 31.3 Sales /

income


Accrual

Tangible Net Worth

TOL / TNW DSCR For term loans, please enclose projected profitability statements covering the period of repayment Details of Security offered Primary Collateral

(i) Immovable property Description of property


Basis of Valuation







APPRAISAL FORMAT FOR FINANCING FRANCHISEES OF APOLLO CLINICS Proposals for financing of franchisees of Apollo clinics need to be appraised based on the Risk Parameters that are given below. The methodology of calculation of the score in the below mentioned risk matrix is :

o Assign any one of the three codes (A, B & C) to all the considerations as above.

A = Extremely Satisfactory.

B = Satisfactory &

C = Not Satisfactory

o The marks assigned to these codes are A = 10, B = 6 & C = 3

o Calculate the total score of the risk matrix by multiplying weightage of each consideration with the marks of these codes (e.g. if a proposal gets B in “location of the clinic” then, 10%* 6 =0.6 mark would be given to the first consideration and accordingly the sum or all consideration will be calculated for the proposal).

1 2 3 4 5 Parameters Considerations Weightage Code

(A, B, C) Score 3* 4

Location of the Clinic 10% Location (30%) Population / No. of

polyclinics in the city or region

20%

Reputation of the owner 25% Personal wealth of the owner

10% Owner (50%)

Previous business performance

15%

Projections (20%)

Cash flow estimates 20%

Total Based on the score achieved by every proposal, the collateral security is to be decided. Maximum score that can be achieved by a proposal is 10 and minimum score is 3. The calculation of collateral security to be made as under. Score received by the proposal Collateral security to be considered

8 or more than 8 50% of the term loan amount 6 or more but less than 8% 75% of the term loan amount 4 or more but less than 6 100% of the term loan amount Less than 4 Term Loan not to be considered The minimum collateral security stipulated is 50% of the Term Loan. 6. To set up a typical Clinic as envisaged by Apollo, the franchisee would be required to lease / own premises of around 3200 sq. ft. The total estimated cost of the project would be in the region of Rs. 170 lacs. The debt equity ratio desired is 1:1. Project Cost of around Rs. 1.72 crore consisting of : Lease Deposit 4.80Medical Equipment 70.60Interiors, Civil Modification, Furniture, AC, Electrical 45.00Information technology (Hardware and Software) 12.00Preliminary and Pre-operative expense 13.00Working Capital Margin 3.00Contingency Funds and Others 3.50License Fees for AHLL (+10.2% service Tax) 20.00

Total – 171.90 The revenue generation from Consultation, Health Checkups, Diagnostics Pharmacy and other facilities are expected to be Rs.140 lacs in the first years of operation. The turnover is expected to double in the 4th year. The cash break even is likely to take around 5/6 months while the expected payback period is 4-4.5 years with a post tax IRR of up to 25%. 7. There is an understanding with Apollo that all the applications will be processed within 10 days from the date of receipt of application and complete documents. Branches should ensure sanctity of the commitment made by the Corporate Centre with Apollo.

SCHOOL PLUS

25. Target Group

: Primary and Higher secondary schools Graduation, Under-Graduation and Post

Graduation colleges Professional colleges and coaching institutes are excluded from this product and should be assessed on usual CRA model

26. Eligibility

: Government Aided schools / colleges Private schools /colleges Schools/ colleges run by trusts of good standing Technical institutes recognized by AICTE / NBA /MCI

Institutions with a credit score of less than 4 are not eligible

27. Purpose

: Purchase of land for building / play ground Construction of school building / auditorium Repair / renovation of existing building Purchase of computer and related equipment Purchase of books / manuals / software and other

training material Purchase of laboratory equipment Purchase of furniture / fixtures Purchase of sports equipment Equipment for mid day meal scheme Purchase of buses for student transportation

28. Type of facilities : Term Loan

29. Quantum of Finance : No cap.

30. Margin : 15% of the project cost


: Ranging from 0.75% below SBAR (9.50%) to 1% above SBAR (11.25%) based on credit score


- Collateral

: Assets purchased out of Bank finance Personal guarantee of the Promoter / Trustees /

any other persons acceptable to the Bank and EM of land and building and other immovable

assets of the school or guarantor for 20% of the loan amount for loans of Rs.2 lacs to Rs.10lacs and EM of other immovable assets of the institute / guarantor for loans above Rs.10lacs.for 20% of the loan amount

For Loans given under Bank’s arrangement with Intel and NIIT as service providers for

schools.

- Hypothecation of charge over assets acquired out of Bank finance

- Personal Guarantee of the key Manager / Trustees / promoters / any other persons / body acceptable to the bank.

- PDCs to cover complete bank exposure

33. Processing fees As applicable to C&I segment

34. 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

Repayment to be fixed as per schedule of receipt of fees. DSCR not to exceed 2

35. Documentation : TL document for SME units Resolution of the trust Bye laws of the trust authorizing the trust to

borrow from bank Guarantee Agreement of the Chief promoter(s) /

Trustees/ Any other acceptable persons


: Fixed rate Term Loan only An exclusive scoring model has been devised to

assess the credit risk and fix interest rates accordingly

Disbursal will be made in stages for construction Direct payment to supplier for purchase of assets No reimbursement is permissible More than one loan can be granted subject to

repayment capacity as stipulated The scoring model and the application form are enclosed in the annexure section

Product Highlights: Educational institutions are required to incur heavy capital expenditure for providing quality education to the students in comfortable and safe surroundings. As a measure to provide timely credit to such institutions subject to the repaying capacity through adequate income being available, this product has been designed by the Bank for delivery through Scale III and above incumbency branches.. The repayment schedule is also made flexible to avoid straining the liquidity of the institution. Marketing Tips:

Schools which have a large student population but housed in inadequate

or unsafe buildings of poor quality can be approached for availing this product.

End of the school year is an appropriate time to market this product as the schools tend to take up renovation / expansion works during vacation time.

Create data base of all schools and colleges in the locality/centre.

Display product features in various vantage points in the vicinity of

schools/colleges.

Marketing of this product should be taken up as a bouquet of related products and services such as Teacher Plus, salary accounts, other personal segment products such as car loans ,two wheeler loans, housing loans, etc., and services such as collection of fees, investment advisory services, etc.

FAQs

Can this product be extended to franchisees of computer training institutes?

No but such institutes can be considered under the regular CRA model or under the Mortgage Loan

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Application cum interview form for financing Schools Name of the School / Institute Address of the Unit Phone No. Fax No. Email / website









Ph No / Mobile

Net Worth *












Total Total

For term loans – Details of assets to be acquired (pl. enclose detailed list if necessary) Description Details of the


completion Need for the proposed expenditure Cost Amount Means Amount Land & Building Own funds Equipment (proforma invoice to be enclosed)


Other assets Bank loan Total Total Any other information : (Including specific reasons for Letter of Credit / Bank Guarantee / etc…) Business Information Marketing arrangements Level of competition Major competitors Competitive advantage of the unit Fees details Fee charges per month No. of Students Other income Average Receivables Level

Performance Parameters Post / projects Past three years

Projections

31.3 31.3 31.3 31.3 31.3 Sales /

income


Accrual

Tangible Net Worth

TOL / TNW DSCR For term loans, please enclose projected profitability statements covering the period of repayment Details of Security offered Primary Collateral (i) Immovable property Description of property


Basis of Valuation






Signature of Borrower Date : Name of the Interviewing Official Place : List of documents to be attached

1. Partnership deed in original (to be returned) and a copy thereof 2. Memorandum and Articles of Association with certificate of Incorporation in

original (to b returned) and copies thereof.

3. Copies of relevant license, documents pertaining to ownership / tenancy / lease agreement in respect of premises where activity will be carried out/ service or trade related agreements etc.,

4. Latest copy of income – tax return / sales tax Assessment order etc. 5. Statement of account from the existing banker for last 6 months. 6. Copy of the Title deeds relating to collateral security being offered. 7. Photocopies of PAN card of partners / Directors wherever available. 8. Copies of balance sheets for the past three years (audited wherever

applicable0 9. Statements of personal assets and liabilities of Proprietor / Partners /

Directors / Guarantors. 10. Photographs of Proprietor / partners / Directors / Guarantors.

APPRAISAL FOR FINANCING UNDER SCHOOL PLUS For already existing schools : 1 2 3 4 5 Parameters Factors Weightage Code


Average % of passing children (all classes)

20% Past record of the students (20%)

Quality of teachers 10% Faculty (20%) Teachers – students ratio 10%

Experience of promoters / trusts (20%)

No. of years in the industry 20%

Security Value (20%) Primary + Collateral security

20%

Existing facilities (10%)

Science / Computer lab. Library, Arts & Crafts, Playground etc.

10%

Brand name (10%) Reputation on the School / Chain

10%

Criteria for scores to be given to the factors : Average % of passing children (all classes)

• 90% and above – A • 70% - 90% - B • Less than 70% - C

Quality of teachers

• Post Graduate teachers i.e. M.Ed., M.Phil, Doctorate etc - A • B.Ed teachers --------------------------------------- - B • Untrained teachers ---------------------------------------------- - C

Faculty / Student ratio

• More than 30% - A • 2 – 3% - B • Less than 2% - C

Experience of promoter / trusts

• More than 5 years - A • Less than 5 years - B • No experience - C

Security value (Primary + Collateral)

• More than 200% of Bank’s exposure - A • More than 150% of Bank’s exposure - B • More than 125% of Bank’s exposure - C

Existing facilities like Science or Computer Laboratories, Libraries, Facilities for teaching crafts, arts, music, dance etc and playgrounds.

• Three of more of the above facilities - A • Two facilities -------------------------- - B • One or no such facility --------------- - C

• Reputed Chain of Schools / Very reputed name (Single School) - A • Medium reputed school - B • Unknown Brand or first school - C



o Calculate the total score of the risk matrix by multiplying weightage of each consideration with the marks of these codes (e.g. if a proposal gets B in “past record of the students” then, 20%* 6 = 1.2 mark would be given to the first consideration and accordingly the sum of all consideration will be calculated for the proposal).

Maximum score that can be achieved by a proposal is 10 and minimum score is 2. Interest rates to be changed based on the scores are as under : Score received by the proposal Collateral security to be considered 8 or more than 8 0.75% below SBAR, presently 9.50% 6 or more but less than 8% At SBAR, presently 10.25% 4 or more but less than 6 1% above SBAR, presently 11.25% Less than 4 Term Loan not to be considered

For New Schools : 1 2 3 4 5 Parameters Factors Weightage Code


Experience promoters / trusts (20%)

No. of years in the industry 20%

Faculty (10%) Quality of teachers 10% Brand name (10%) Reputed Chain 10% Expected Demand (20%)

Density of school, composition of middle, upper middle or higher income families in the area

20%

Facilities (10%) Science / Computer lab, Library, Arts & Crafts, Play ground etc.

10%

Security Value (30%) Primary + Collateral security

30%

Criteria for scores to be given to the factors : Quality of teachers

• Post Graduate teachers - A • B.Ed teachers - B • Untrained teachers - C

Experience of promoter / trust

• More than 5 years - A • Less than 5 years - B • No experience - C

Security value (Primary + Collatral)

• More than 200% of Bank’s exposure - A • More than 150% of Bank’s exposure - B • More than 125% of Bank’s exposure - C

Brand Name

• Reputed Chain of Schools / Very reputed name (Single School) - A • Medium reputed School ------------------------------------------------- - B • Unknown Brand of first school -------------------------------- - C

Expected Demand

• Demand certain ------------------------- - A • Demand likely to be high ------------------- - B • High competition, demand highly uncertain - C

Facilities

• Three of more of the above facilities - A • Two facilities ----------------------------- - B • One or no such facility ------------------------- - C



o Calculated the total score of the risk matrix by multiplying weightage of each consideration with the marks of these codes.

Maximum score that can be achieved by a proposal is 10 and minimum score is 2. Interest rates to be changed based on the scores are as under : Score received by the proposal Collateral security to be considered 8 or more than 8 0.75% below SBAR, presently 9.50% 6 or more but less than 8% At SBAR, presently 10.25% 4 or more but less than 6 1% above SBAR, presently 11.25% Less than 4 Term Loan not to be considered

SEMFEX II

1. Target Group

: .Ex-servicemen, widows of servicemen. disable servicemen

Eligibility

: Individual or association of not more than 6 members.

Purpose

: To purchase utility vehicles, LCVs, Commander 650, Major(CL-500) and Savari Rang and pick ups such as single cabs and double cabs manufactured by Mahindra & Mahindra .

Type of facilities : Term Loan

Quantum of Finance

: As per assessment. Not more than 10 vehicles should be owned by the borrower including the vehicles to be financed. Gross DSCR should be Minimum 1.75%

Margin : 20%

Rate of Interest

: For loans below Rs.50000/- 1.75% below SBAR for TLs repayable within 3 years 1.25% for TLs repayable in 3years to 7 years. For loans over Rs.50000/- 0.75% below SBAR for TLs repayable within 3 years 0.25% for TLs repayable in 3years and over.

Security: - Primary

- Collateral

: Hypothecation charge to be registered with RTA. Mortgage of immovable / movable property to cover 50%of the loan amount and / or third party guarantee

Processing fees Waived

Repayment

Within 3 to 7 years with a moratorium of 6 months. Longer repayment period may be fixed based on the gross DSCR in each case.

Documentation


Special features

: Subvention amount is available per vehicle for 1 year

Methodology and Operation of the account

M&M dealers will obtain applications and after due diligence will forward them to the Bank for appraisal and sanction if found acceptable in all respects.

Product highlights: This scheme is for extending a soft loan to ex-servicemen to help them to augment their income in post-retirement period by undertaking a suitable economic activity. Finance can be extended for purchase of upto 10 transport vehicles of any make in utility and LCV range and cabs.. This loan can be covered under tie up arrangements of the Bank with M&M, in which case, the borrower will get the benefit of the subvention amount and two additional free service coupons. Marketing tips:

Processing fees has been waived, the repayment is extendable upto 7years. Collateral can be only upto 50% of the loan amount.

FAQs

Is there any DSCR stipulation for this product? The minimum gross DSCR should be 1.75

Should Nabard refinance be obtained?

Only for the margin money assistance portion and not for the term loan.

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CORPORATE LOAN

1. Target Group

: Existing C&I and SSI customers and also non customers subject to take over norms.

2 Eligibility

: .Existing corporate and non-corporate customers in C&I and SSI segments with SB3 or SBTL3 rating. Non–customers can also be offered this product after ensuring the creditworthiness and obtention of opinion report from their bankers.

3 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. It should be ensured that the loan amount is not diverted for purchase of land or shares for speculative purposes.

4 Type of facilities : Clean Term Loan


: Minimum Rs.25lacs Maximum Rs.10 crores for non corporate(C&I – Mfg.) / SSI borrowers No cap for corporate borrowers

6 Margin

: Not applicable

7 Rate of Interest

: At least one step higher than the applicable rate as per the CRA rating


- Collateral

: First charge on assets created from bank finance or extension of first charge on current assets as the case may be. 1. 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.

2. Personal Guarantee of promoters/partners/ proprietor should be obtained. In the case of Corporates, pledge of promoters' equity should be explored.

9 Processing fees As applicable to SSI / C&I units

10 Repayment

Repayment period not to exceed 3 years at quarterly/half yearly intervals. Uneven or bullet instalments may also

be permitted based on the cash flows 11 Documentation : As per simplified SME Documentation 12 Special features

: The discretionary powers are those applicable to

term loans. 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.

Product Highlights: Corporate loans have been in vogue for sometime for corporate entities. It is a clean term loan which can be used for any specified purpose connected with the unit such as shoring up of net working capital, VRS scheme for its employees, advertisement campaign, replacing high cost debt with low cost funds and so on. The loan can be extended for a minimum amount of Rs.25 lacs to Rs.10crores for non –corporates and for any amount for a corporate. Marketing tips:

This is a useful product to attract the borrowal units of other banks to our

books subject to fulfillment of takeover norms. Units which are facing liquidity crunch can be offered this loan to shore up

their working capital funds. Units which are contemplating VRS scheme to reduce their wage bill are a

good source for this product. Units which are about to launch a new product and require to spend on

advertisement and promotion can avail this facility.

FAQs Can improved pricing be offered to units below the applicable rate for

attracting good business connections? Based on merits on a case to case basis, finer pricing can be offered after obtaining approval from the appropriate authority.

Who is the appropriate authority? If the pricing is to be the same as that applicable as per CRA rating, the

sanctioning authority has the discretion to approve the same. For any further improvement in pricing, the authority will depend upon the quantum of reduction sought in the rate of interest to be charged.

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RENT PLUS

1. Target Group

: Owners of large commercial / office spaces rented out to large corporates, MNCs, banks, PSUs, our Bank, etc. in Metro/urban areas.

2 Eligibility

: Individuals /partnership firms/ corporates

3 Purpose

: To meet liquidity mismatches


: Term Loan


: Minimum Rs.50,000/- Maximum Metro & urban Centres - Rs.10 crs. Subject to 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 85% of the market value of the property whichever is less

6 Margin

: 40% (CGMs of Circles have discretion to reduce the margin to 30%

7 Rate of Interest

: For loans upto 3 years - 0.25% above SBARAbove 3 years upto 7 years - 0.50% above SBAR for the full period Above 7 years upto 10 years - 0.75% above SBAR For the full period Finer pricing as per CPPD guidelines for competitive pricing


- Collateral

:

Assignment of receivables and recording of power of attorney with the lessee is mandatory

First charge on property rented out or any other property of a value not less than 120% of the loan amount

Personal guarantee of partners / directors In the case of public limited companies if the collateral of 120% is available, the personal guarantees of directors may be waived by the sanctioning authority

In case the loan amount does not exceed Rs.25000/- and the Bank is the lessee, then EM may be waived subject to the lease deed does not expire during the currency of the loan

Waiver of EM may be allowed by a sanctioning authority not less than CCC –I in select deserving cases

• Where lessee is a reputed corporate (eg.

Bank, MNC), and maintaining consistency in profitability for at least 3 years and is agreeable to execute the Tripartite Agreement AND

• Where lessor’s creditworthiness and integrity are beyond doubt and personal guarantees of all owners/partners are available.

9 Processing fees 1% of loan amount to be paid upfront presently as per CPPD circular No. CPP/JLJ/CIR/39 dated 14.08.2007

10 Repayment

In equated instalments at the same frequency at which rent is received in a maximum period of 7 years or the residual lease period whichever is less.

11 Documentation

: Application for loan Arrangement letter Agreement of loan and power of attorney Tripartite Agreement between the lessor, the

lessee and the Bank OR An irrevocable power of attorney from the lessor

to collect the rent which should be duly registered with the lessee.

Deed of Guarantee if applicable 12 Special features

: The classification of segment is based on the purpose for which the loan is being availed.

Product Highlights: This product provides finance against assignment of future rentals. The scheme is available at metro & urban centres only and is aimed at owners of residential or commercial projects which have been lease out to large or medium corporates, and Banks / MNCs. The credit is extended by way of a term loan and is repayable within the residual period of lease not exceeding 7 years Marketing tips:

This product can be offered to all the owners of our Bank's rented premises

both for branches as well as residential purposes. The product can also be offered to owners of other banks' branch premises as

the terms and conditions of our product are much more attractive than those of other banks for a similar product.

FAQs

Can we accept some other property as collateral than that which has been rented out and the rent receivables of which are being offered as primary security?

Yes. Any property whose value is estimated to be at least 120% of the loan amount OR personal guarantee from an acceptable person(s) can be accepted as collateral .

Can we extend this facility if the lessee is not an MNC/Bank/corporate?

We can give this loan in such cases on merits, subject to obtention of administrative clearance from GM (Network).

Back to

Index

WORKING CAPITAL FINANCE TO PRIVATE BUILDERS OF RESIDENTIAL FLATS

1. Target Group

: Reputed builders with an excellent track record of timely and quality construction of projects undertaken and of sound financial strength.

2 Eligibility

: Should have completed a few projects Should have a minimum net –owned funds The project should have all statutory clearances The project should be completed in 18 to 24 months

3 Purpose

: To meet working capital requirements

4 Type of facilities : Cash Credit 5 Quantum of Finance

: The assessment will be based on the projected cash flow of the project subject to a maximum of 50% of the project cost or Rs.5 crores or 5 times his net worth, whichever is less. The reasonableness of the project cost has to be ascertained from specialised agencies.

6 Margin

: At least 50 % of the project cost

7 Rate of Interest

: As applicable to C&I advances based on CRA rating


- Collateral

: EM of the land. This can be waived in the case of reputed builders of good status and financial strength subject to obtention of personal guarantees of directors/ partners or corporate guarantee of associate concerns acceptable to the Bank. Tangible collateral security to the extent feasible should be obtained from the borrower / guarantor.

9 Processing fees As applicable to C&I advances 10 Repayment

Within a maximum period of 24 months.

11 Documentation


12 Special features

: All precautions relating to appraisal , sanction and documentation should be meticulously followed as this is a high risk product.

It should be ensured that the credit worthiness and integrity of the major builders are reviewed and approval obtained for all their projects and also for specific projects for construction of flats.

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.

Refer circular CPP/RSN/CIR/10 dt. May 6, 2006.

Product highlights: Construction activity has been witnessing exponential growth in recent years generating vast employment opportunities. The Bank has also to tap this opportunity for business by way of credit facilities, both fund based and non fund based. Construction activity is financed by way of cash credit for which the assessment is based on cash budget subject to a limit of Rs.5crores or 5 times the networth of the applicant or 50% of the project cost whichever is less. Marketing tips:

Projects taken up by reputed companies should be got assessed in advance by specialist agencies and kept on record. As and when the application for finance is received it would be possible to consider the proposal in a short time. Otherwise, either it will take a long to time to examine all the aspects thoroughly or if the proposal is cleared in a hurry, chances are critical aspects will be overlooked in this high risk product.

We can give housing loans for flats in a building for which we have already extended credit facilities to the builder. 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.

Back to Index

LOANS FROM FCNR(B) FUNDS 1. Salient features of the scheme are as follows:

a) Loans can be granted for manufacturing as well as trading activities of units rated SB 5/ SBTL 5 and above. Exporters and Industries/Hotels with matching forex inflows will be preferred.

b) Loans can be granted for working capital as well as Term Loan requirements by way of FCNR(B) DLs and FCNR(B) TLs. FCNR(B) Demand loans can be sanctioned for a maximum period of 12 months. FCNR(B) Term Loans can be sanctioned for a duration of 1 to 5 years. Whenever Term loans are considered for a period of above 3 years a specific prior clearance needs to be obtained from FD. In case of loans sanctioned for a period of above 3 years, Bank will retain the option to convert the loan in to Rupee loan at any time after 3 years from the date of sanction.

c) Loans will be granted in USDollars , Pound Sterling, Euro and Yen if funds are available

Minimum: US Dollars 50000 or equivalent in other currencies and in multiples of USD/GBP/EUR 10,000 and JPY 1,000,000 thereafter.

Maximum: US Dollars 20 million per borrower in general for working capital and term loan put together. After that approval of Dy MD (IBG) will be required

d) Prior funds clearance should be obtained from FD before commitment to borrowers. In no case sanction of FCNR(B) loans should be communicated to the borrower before funds allocation clearance is obtained from FD Kolkata.

e) Rate of interest: Base rate is LIBOR for demand loans and for term loans. The base rate and the spread over it range according to the credit rating of the unit.

CREDIT RATING INTEREST RATE % 12 TO 36 MONTHS

INTEREST RATE % 37 TO 60 MONTHS

PRIME LIBOR + 2.25 LIBOR + 2.50

SBTL 1 LIBOR + 3.25 LIBOR + 3.75





f) Withholding Tax-nil

g) Processing Fee- for FCNR(B) DLs -there is no separate processing fee if it is already recovered at the time of fixing the overall limit. For FCNR(B) TLs

processing fee applicable to the equivalent to the Rupee term loan should be recovered.

h) Transaction Cost-Upfront

Rs.25,000/- for each FCNR(B) DL

Rs.35,000/- for each FCNR(B) TL to be credited to Branch Commission A/C.

i) Commitment Charge- ( for both DLs and TLs)

For disbursement,time allowed without committment charge is 15 days from the date of allocation of funds.

If availment of disbursement is after 15 days but before three months, commitment charge @ 1% per annum is chargeable which should be credited to Branch Interest account.

If not availed within three months apart from charging commitment charge @ 1% per annum, the loan would be treated as cancelled.

j) Transfer Price Mechanism: 80% of the interest recovered will have to be given as Central Office interest irrespective of business segment.

k) Branches to revalue the balances half-yearly at rates advised by FD.

l) Penalty for early payment (Minimum lock-in period of 3 months)

For early repayment of the loan, a penalty at 1.5% per annum on the amount of the loan prepaid,for the unexpired period of the loan is charged.

m) For repayment of FCNR(B) loans, Authorised Dealers can sell foreign currency to borrowers without RBI permission. These loans can also be repaid by adjustment of advances/inward remittances/export proceeds/balances in EEFC accounts/other forex inflows. In the event of no funds being available in the borrower’s account, an overdraft/irregularity is to be created for remitting the FCNRB (DL) / instalments of FCNRB(TL) on due date to FD. Kolkata.

n) The scheme is operated at designated branches(DBs). Other branches can operate the scheme through DBs.

o) If customers wish to book forward sale contracts for their interest liability they may be permitted to do so by giving these contracts separate treatment

2. FCNR(B) DEMAND LOANS a) Period: Up to a period a twelve months.

b) Within the Rupee MPBF fixed for the borrower and the Fund Based Working Capital sanctioned by the Bank.

c) It can be part of either working capital demand loan or cash credit component. If Rupee WCDL has been converted to FCNR(B) DL then maturity of the FCNR(B)

DL will be same as that of Rupee WCDL. Availment of FCNR(B) DL for broken period is also permitted

d) Disbursed in one lump sum, so also the repayment.

e) Loans can be granted on fully hedged basis. Waiver for booking of Forward cover can be approved by the Credit sanctioning authority not below the rank of CCC-1, if the corporate has natural hedge or well laid out corporate hedging policy. However, wherever waiver is permitted, Bank reserves the right to insist on hedging any time during the currency of the loan based on period reviews undertaken or whenever major adverse movement in exchange rates take place.

f) FCNR(B) DL can be utilised to prepay the WCDL, with the approval of the controlling authority.

g) The number of WCDL and FCNR(B) DLs put together should not exceed seven per borrower.

h) For exporters, FCNR(B) DL in lieu of EPC (carved out of EPC limits) can be sanctioned. Such credits to exporters would amount to export credit.

Adjustment of advance/inward remittances/export proceeds, balances in EEFC/EFCA a/cs etc. can be made in FCNR(B) DL.

i) Revaluation of outstandings should be made at the beginning of each month to assess whether the Rupee liability is within the capacity of the borrower. If not FCNR(B) DLs should be converted into WCDL under advice to controllers.

j) Interest should be recovered for FCNR(B) DLs at monthly intervals at the ruling TT Selling rate for the Foreign Currency amount.If the interest amount is Rs.10 lakhs and above finer rates can be applied.

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Construction Equipment Loan (CEL)

1. Target Group

: Contractors, Firms, firms engaged in construction activity

2 Eligibility

: Minimum rating of SB3 or equivalent in new model

3 Purpose

: Line of Credit for financing new machinery / equipment / vehicles for construction activities

4 Type of facilities : Term Loan


: Minimum Rs.25 lacs Maximum Rs. 25crores ( Rs.50crores in Delhi, Kolkata, Chennai, Mumbai, Hyderabad and Bangalore )

6 Margin

: 15% - 20% in case of SB1 SB2 borrowers. 20 – 25% for others

7 Rate of Interest

: For SB1 & SB2 borrowers: 1.50% below SBAR For others : 1.25% below SBAR No further concession would be considered.


- Collateral

: 1.Hypothecation of machinery/ equipment / vehicles financed by the Bank. 2. Registration Charge with RTA 3. Pre payment cheques for principal amount, favouring SBI a/c CEL…….(Name of borrower) Hypothecation of other unencumbered equipment or EM of property to the extent of at least 25% of the loan amount

9 Processing fees For SB1, 2 borrowers – Rs.200 per Rs.1 lac loan amount For other borrowers – Rs.300 per Rs.1 lac loan amount Sanctioning authority has discretion to reduce upto 50% Documentation Charges: For SB1 SB2 borrowers – Rs.5000/- For others - Rs.10000/-

10 Repayment

2 to 3 years extendable to 4 years on merits from the date of first disbursement by way of EMIs

11 Documentation : As per simplified SME Documentation

12

Disbursement

In tranches within a maximum of one year from the date of sanction, each tranche being not less than 10% of the loan amount

13. Pre Payment Charges

1% of the amount prepaid

14.

Penal interest

For SB1 &2 borrowers : @1% per month for the default amount and for others @ 2% per month for the default amount The sanctioning authority has the discretion to reduce upto 50%

15.

Inspection

Half yearly

16.

Insurance

Comprehensive insurance policy with endorsement in favour of SBI as “loss payee”

CONSTRUCTION EQUIPMENT LOAN – JCB MACHINES

1 Eligibility Those engaged in construction activity

2.

Purpose

Purchase of equipment manufactured by JCB

3.

Quantum

Minimum Rs.15 lacs Maximum : Rs.100 lacs

4.

Margin

25% for borrowers who are new to this line of business 15% in case of borrowers having 9 machines 5% in case of borrowers having more than 9 machines

5.

Repayment

Upto 4 years including a moratorium of upto 3 months

6.

Interest

For SB1 to SB5 (new rating); at SBAR For SB6 to SB9 (new rating) : 0.50% above SBAR For borrowers not subjected to CRA rating: 0.50% above SBAR Those with CRA rating below SB9 should not be financed.

7.

Penal interest

2% for the amount and period in default

Note :-

• All other terms and charges as per card rates. • This scheme is valid 31.03.2010

Back to Index

SME CARE

14. Target Group

: Existing SME borrowal units

15. Eligibility

: Customers of the following segments with a satisfactory track record having fund based limits upto Rs.10 crores and subject to

unit should have earned profits for the last 3 years It has submitted financial statements and stock

statements etc. regularly The limits have been renewed on time The debit / credit summations in the loan account

are by and large satisfactory 16. Purpose : For holding higher inventory / carry receivables for an

increased period of upto 6 months, necessitated on account of slump in the markets during the current year

17. Type of facilities : Working Capital Demand Loan 18. Quantum of Finance : Maximum of 20% of the existing working capital fund

based limits 19. Margin : As applicable to the existing facility 20. Rate of Interest : As applicable to the existing facility 21. Security:

- Primary

- Collateral

: Existing security of all credit facilities including fund based and non fund based to be extended to cover this loan

22. Processing fees As applicable 23. Repayment

: Moratorium for the first six months during which only the interest has to be serviced and the outstandings have to repaid in the next six months by monthly or quarterly instalments.


: This facility has to extended on merits on a case to case basis

Loans upto Rs.1 crore to be sanctioned by Chief Manager of the Branch / RBO /CPC

Loans upto Rs.2 crores to be sanctioned by AGM of the Branch / RBO / CPC

In case the total indebtedness exceeds the discretionary powers of the CM / AGM, then the sanctions have to be put up to the appropriate authority as per the delegation of powers for sanction of advances based on the total indebtedness of the unit, within 15 days of sanction for necessary validation.

Back to Index

SME HELP

26. Target Group

: Existing SME borrowal units

27. Eligibility

: Customers of the following segments with a satisfactory track record having fund based limits upto Rs.10 crores and subject to

unit should have earned profits for the last 3 years It has submitted financial statements and stock

statements etc. regularly The limits have been renewed on time The debit / credit summations in the loan account

are by and large satisfactory 28. Purpose : For funding urgent / additional requirements of machines

/ tools / gen sets and any other fixed asset 29. Type of facilities : Term Loan 30. Quantum of Finance : 85 % of cost 31. Margin : 15% 32. Rate of Interest : 8 % per annum for one year and normal rates as

applicable from time to time 33. Security:

- Primary

- Collateral

: Existing security of all credit facilities including fund based and non fund based to be extended to cover this loan

34. Processing fees As applicable 35. Repayment : Upto 5 years


: This facility has to extended on merits on a case to case basis

These loans to be sanctioned as per the discretionary powers of the sanctioning authorities

Back to Index

Application Form for eVFS Facility

Customer No. Account No. Branch Date

1. Full Name of Company:

2. Address: Registered Office Business/ Factory Address Pin:

Pin:

3. Telephone: 4. Fax:

5. Mobile: 6. E-mail ID of the Co./ Firm:

7. Please tick (√) the constitution of the firm (Refer to Annexures for documents to

be submitted): Sole Proprietorship Firm Partnership Firm Joint Hindu Family Private/Public Limited Company Club/Association/Society Trust Any other (Please Specify)

8. Name of Chief Promoter:

9. Gender: M/F

10. Address:

11. Phone: 12. Mobile:

13. Fax: 14. E-mail:

15. Business Premises:

Ownership of Business Premises (tick)

Owned Annual Rent (Rs.) Leased till

16. Management (Directors/ Partners) Name Age Qualification Experience

17. Key Managers and Positions Held Name Designation Qualification Experience

18. Share holding pattern of the company is as under: (Position as on 31.03.2008)

Name of the Shareholder No. of Shares Face Value of Holding %age Share

19. Photographs:

Name(s) of Proprietor/ Partners/ Persons (in case of Companies/

Specimen Signature (with Rubber Seal)

Signature, Name and S.S. No. of Verifying Official

Trusts, etc.)/ authorized to operate the account

20. Existing Banking Arrangement:

Present bankers: Bank and Branch Name (Rs in lacs)

Limit O/s as on Security Type of facility Availed SBI Other SBI Other

Account Number

Fund Based (FB) Term Loan

WC for Stocks WC for receivables Any other Non Fund Based (NFB)

LC BG TOTAL (FB+NFB)

21. Is the unit Rated by it’s bankers

Yes: No: If Yes, Rating for last two years:

22. Has the company ever been rated by any external agency:

Yes: No: If Yes, Please mention the name of External Rating Agency, year and the latest rating

23. Details of other business or identical business (Associate/ Sister/ subsidiary

concern if any): Name of Unit

Name of Proprietor/ Partner

Main Activity

Bankers Name

WC Limit (Lacs)

T/L (O/S)(Lacs)

Other facilities (Lacs)

24. Supply of goods to Industry Majors: (Rs in lacs)

Name of Industry Major

Names of Items/ Assemblies

Applications Sales (2007-2008)

Sales (2008-09 -- months)

25. Plans for expansion/ modernization in the next 2 years

26. Do you wish to avail SMS/ E-mail intimation facility of SBI? Yes No

(You will receive one SMS/ e-mail/ both the moment your account gets credited) a) Please provide mobile number where SMS will be sent: b) Please provide e-mail id:

27. Last 12 months sales figures to the IM

(Rs In Lacs) April May June July August September October November December January February March

28. Brief particulars about significant developments that took place in your business in the last and current financial year. State reasons if there was/ is a substantial increase/ decrease in the projected turnover.

29. Please enclose last 2 year’s audited balance sheets along with your sales projections for the whole company and to the IM separately for the current year along with a copy of the latest purchase order/s received from the IM.

Other information: Date of Establishment/ Incorporation: Sales/ Excise Tax Reg. No: PAN/ GIR Number or Form 60/61 of Income Tax Rules: I/ We request you to provide the eVFS facility to me/us for Rs._____________. I/We declare that the information given in the application form are true, correct and complete and that they shall from the basis of any kind of facility State Bank of India may deicide to extend to me/us. I/We shall furnish all other information that may be required by the Bank in connection with my application. The information may also be exchanged by you with any agency you may deem fit. You may take appropriate safe guards/action for recovery of bank dues including publication of defaulters’ names in website/submission to RBI. I/We confirm that I/we have no borrowing arrangements for the unit with any bank except those indicated in the application. I/We confirm that I/We are not defaulter of any bank/any financial institution. I/We confirm that there are no over dues / statutory dues owed by me/us and I/We have/had no insolvency proceedings against me/us nor have I/we ever been adjudicated insolvent. I/we undertake to abide by the Rules and Regulations of State Bank of India in respect of the facilities being extended to me/us. Yours Faithfully, Name Signature Date (Authorized Signatories)

Annexure-1

Formalities observed in respect of Proprietorship/ Partnership Firms/ Joint Hindu Family: 1.

Name(s) Proprietor/ Partners/ Karta/ Coparceners

Nationality Address Mobile Phone e-mail Fax

Mode of operation in case of partnership to be indicated: (VIZ. All partners jointly/ severally (singly), partner 1 & 2 jointly/ severally (singly), etc.) 2. Partnership letter dated and No. obtained on Cos 37, signed by all the partners. (To be compulsorily obtained in case of partnership firms) 3. Partnership deed dated (wherever available) 4. Joint Hindu Family Letter dated and No. obtained on Cos 38, signed by all the adult coparceners. (To be compulsorily obtained in case of Joint Hindu Family) 5. Personal Information Sheet obtained in respect of all i.e. proprietor, partners, coparceners, karta (whichever applicable) 6. Letter from Chartered Accountants stating that accounts are standard 7. Copy of PAN card of the firm 8. Copy of address proof of the firm 9. Copy of ID of authorized signatories 10. Copy of address proof of authorized signatories

Annexure-2

Formalities observed in respect of accounts in the names of Clubs, Associations, Societies, Trusts and of other Fiduciary nature.

1. Copy of Memorandum of Association registered on and Articles of Association dated obtained.

2. Copy of the Bye Laws dated and resolution dated

of the Society, regulating the conduct of the account, obtained.

3. Copy of relevant extracts of trust deed dated obtained and perused, with special emphasis on the powers of the trustees to sign cheques, delegation of authority, borrow money, etc. The relevant proportions are entered in the Power of Attorney register.

4. Personal Information Sheet of Secretary, President, Managing Trustee, etc. obtained

5. Letter from Chartered Accountants stating that accounts are standard

6. Copy of PAN card

7. Copy of address proof

8. Copy of ID of authorized signatories

9. Copy of address proof of authorized signatories

Annexure-3 Formalities to be completed in respect of Limited companies: 1. Certificate of Incorporation dated (for inspection and return). A

copy of same is retained.

2. Copy of Memorandum of Association registered on and Articles of Association dated obtained.

3. Certificate of Registrar of Joint Stock Companies dated that the company is entitled to commence business (for inspection, entry in the Power of Attorney Register and return). A copy of the same is retained.

(This certificate is not required when, a. The company is a private company b. The company was registered before 1913 and does not invite the public to

subscribe for shares. c. The company is limited by guarantee and does not have a share capital.)

4. Certified copy of resolution dated , regulating the conduct of the

account, obtained, some what on the following terms:-

5. Personal Information Sheet of the Chairman/ Managing Director/ Chief Promoter obtained 6. Letter from Chartered Accountants stating that accounts are standard 7. Copy of PAN card of the Company 8. Copy of address proof of the Company

We hereby certify that the following resolution of the Board of directors of the Company, Limited was passed at a meeting of the Board held on the and has been duly recorded in the Minute Book of the said company:‐ “resolved:‐ that a bank account for the Company be opened with the State Bank of India, and that the said Bank be and is hereby authorized to honour cheques, bills of exchange and promissory notes drawn, accepted or made on behalf of the Company by and to act on any instructions so given relating to the account, whether the same be overdrawn or not, or relating to the transactions of the Company.” sd/‐ sd/‐ Secretary Chairman

Sd/‐ Directors

9. Copy of ID of authorized signatories 10. Copy of address proof of authorized signatories

For Office Use

1. Applicant(s) interviewed and purpose ascertained (description) 2. Particulars of identification (Sole Proprietor)

(Photo copies of documents obtained) 3. All formalities except the following have been obtained

4. Account closed on and transferred to branch on

Authorised Official

Open the Account Account opened on Account No. Branch Manager/ Authorised Official Assistant (Signature) Officer (Signature) (Signature) Name Name Name

STATE BANK OF INDIA

Know Your Customer, Anti Money Laundering and Combating Financial

Terrorism Policy Board approved Policy to be read in conjunction

with the Operating Guidelines

Banking Operations Department National Banking Group

Corporate Centre Mumbai

For Internal Circulation only

The document is the approved Policy of State Bank of India in regard to Know Your Customer Standards to be followed and measures to be taken in regard to Anti Money Laundering and Combating Financial Terrorism. The document is current as on ________ and incorporates the statutory and regulatory guidelines issued in this regard upto the 1st July, 2008. This circular can also be viewed and downloaded from SBI Times, Bank’s intranet site from the link “Policies”.

Policy on Know Your Customer Standards,

Anti Money Laundering and Combating Financial Terrorism Measures

INDEX

Pg.Nos.

1. Preamble 3

2. Objective, Scope & Application 3

3. Definition of Money Laundering 4

4. Obligations under Prevention of Money Laundering Act, 2002 5

5. Money Laundering – Risk Perception 5

6. Definition of a Customer 5

7. Key Elements of the Policy 6

7.1 Customer Acceptance Policy 6

7.2 Customer Identification Procedures 7

7.3 Small Deposit Accounts 8

7.4 Monitoring & Reporting of Transactions 9

7.5 Closure of Accounts 10

7.6 Risk Management 10

8. Employee Training 11

9. Recruitment/Hiring of Employees 11

10. Customer Education 11

11. Introduction of New Technologies 12

12. KYC for the existing accounts 12

13. Branches and subsidiaries outside India 12

14. Correspondent Banking 12

15. Miscellaneous 13

16. Principal Officer 13

17. Review of the Policy 13

Policy on Know Your Customer Standards and

Anti Money Laundering/Combating Financial Terrorism Measures

1. Preamble

Reserve Bank of India has been issuing guidelines in regard to Know Your Customer

(KYC) standards to be followed by banks and measures to be taken in regard to Anti

Money Laundering (AML) and Combating Financial Terrorism (CFT). The guidelines

incorporate the:

• obligations cast on banks under the Prevention of Money Laundering Act

(PMLA), 2002

• recommendations made by the Financial Action Task Force (FATF) on AML

standards and CFT

• paper issued on Customer Due Diligence (CDD) for banks by the Basel

Committee on Banking Supervision

Banks are required to put in place a comprehensive policy framework, duly approved by

the Board of Directors, in this regard. This policy document has been prepared in line

with the RBI guidelines and incorporates the Bank’s approach to KYC, AML and CFT

issues.

2. Objective, Scope and Application of the Policy:

• The primary objective of the Policy is to prevent the Bank from being used,

intentionally or unintentionally, by criminal elements for money laundering or

terrorist financing activities. Purposes proposed to be served by the Policy are:

(i) To prevent criminal elements from using the Bank for money laundering

activities

(ii) To enable the Bank to know/understand the customers and their financial

dealings better which, in turn, would help the Bank to manage risks

prudently

(iii) To put in place appropriate controls for detection and reporting of

suspicious activities in accordance with applicable laws/laid down

procedures.

(iv) To comply with applicable laws and regulatory guidelines.

(v) To ensure that the concerned staff are adequately trained in

KYC/AML/CFT procedures.

• This Policy is applicable to all domestic branches/offices of the Bank and is to be

read in conjunction with related operational guidelines issued from time to time.

• It shall also apply to the branches and majority owned subsidiaries of the Bank

located in countries which do not or insufficiently apply the FATF

recommendations, to the extent local laws permit. When local applicable laws and

regulations prohibit implementation of these guidelines, the same should be

brought to the notice of RBI. In case there is a variance in KYC/AML standards

prescribed by RBI and the host country regulators, braches abroad/overseas

subsidiaries will be required to adopt the more stringent regulation of the two.

3. Definition of Money Laundering

Section 3 of PMLA has defined the “offence of money laundering” as under:

“Whosoever directly or indirectly attempts to indulge or knowingly assists or

knowingly is a party or is actually involved in any process or activity connected

with the proceeds of crime and projecting it as untainted property shall be guilty of

offence of money laundering”.

Money launderers use the banking system for cleansing ‘dirty money’ obtained from

criminal activities with the objective of hiding/disguising its source. The process of

money laundering involves creating a web of financial transactions so as to hide the origin

and true nature of these funds.

For the purpose of this document, the term money laundering would also cover financial

transactions where the end use of funds goes for terrorist financing irrespective of the

source of the funds.

4. Obligations under Prevention of Money Laundering (PML) Act 2002

Section 12 of PMLA places certain obligations on every banking company, financial institution and intermediary, which include

(i) maintaining a record of prescribed transactions (ii) furnishing information of prescribed transactions to the specified authority (iii) verifying and maintaining records of the identity of its clients (iv) preserving records in respect of (i), (ii) and (iii) above for a period of ten years

from the date of cessation of transactions with the clients.

These requirements have come into effect from the 1st July, 2005 i.e. the date on which PMLA was notified by the Government of India and rules framed there under.

5. Risk Perception

Non compliance with KYC standards, use of the portals of the Bank for Money Laundering/financing terrorism activities expose the Bank to various risks, such as Operational Risk, Reputation Risk, Compliance Risk and Legal Risk etc.

.

6. Definition of a Customer

A customer, for the purpose of the Policy is defined as:

(i) a person or an entity that maintains an account and/or has a business relationship

with the Bank

(ii) one on whose behalf the account is maintained (i.e. the beneficial owner)

(iii) beneficiaries of transactions conducted by professional intermediaries, such as

Stock Brokers, Chartered Accountants, Solicitors etc. as permitted under the law,

and

(iv) any person or entity connected with a financial transaction.

7. Key Elements of the KYC Policy

The KYC Policy of the Bank has the following key elements:

• Customer Acceptance Policy

• Customer Identification Procedures

• Monitoring of Transactions and

• Risk Management

While the Policy directions are given in this document, the detailed operating guidelines

are being issued separately which should be referred to for effective implementation of the

Policy.

7.1 Customer Acceptance Policy

Bank’s Customer Acceptance policy (CAP) lays down the criteria for acceptance of

customers. The guidelines in respect of the customer relationship in the Bank broadly are:

(i) No account is to be opened in anonymous or fictitious/benami name(s)/entity(ies)

(ii) accept customers only after verifying their identity, as laid down in Customer

Identification Procedures (discussed later)

(iii) classify customers into various risk categories and, based on risk perception, apply

the acceptance criteria for each category of customers. Also, a profile of each

customer will be prepared based on risk categorisation

(iv) Documentation requirements and other information to be collected, as per PMLA

and RBI guidelines/instructions, to be complied with

(v) Not to open an account or close an existing account (except as provided in

paragraph 7.5 of this Policy), where identity of the account holder cannot be

verified and/or documents/information required could not be obtained/confirmed

due to non-cooperation of the customer

(vi) Identity of a new customer to be checked so as to ensure that it does not match

with any person with known criminal background or banned entities such as

individual terrorists or terrorist organizations etc.

(vii) Implementation of CAP should not become too restrictive and result in denial of

banking services to general public, especially those who are financially or socially

disadvantaged.

7.2 Customer Identification Procedures

Customer identification requires identifying the customer and verifying his/her identity by

using reliable, independent source documents, data or information. Thus, the first

requirement of Customer Identification Procedures (CIP) is to be satisfied that a

prospective customer is actually who he/she claims to be. The second requirement of CIP

is to ensure that sufficient information is obtained on the identity and the purpose of the

intended nature of the banking relationship. This would enable risk profiling of the

customer and also to determine the expected or predictable pattern of transactions.

Identification data, as under, would be required to be obtained in respect of different

classes of customers:

1. For customers that are natural persons:

a) Address/location details

b) Recent photograph

2. For customers that are legal persons:

a) Legal status of the legal person/entity through proper and relevant

documents

b) Verification that any person purporting to act on behalf of the legal

person/entity is so authorized and identity of that person is established and

verified

c) Understand the ownership and control structure of the customer and

determine who are the natural persons who ultimately control the legal

person

Wherever applicable, information on the nature of business activity, location, mode of

payments, volume of turnover, social and financial status etc. will be collected for

completing the profile of the customer.

Customers will be classified into three risk categories namely High, Medium and Low,

based on the risk perception. The risk categorization will be reviewed periodically.

The Customer Identification Procedures are to be carried out at the following stages:

o while establishing a banking relationship;

o when the bank feels it is necessary to obtain additional information from the

existing customers based on the conduct or behaviour of the account.

o Customer identitification data (including photograph/s) should be periodically

updated after the account is opened. Such verification should be done atleast once

in five years in case of low risk category customers and not less than once in two

years in case of high and medium risk customers.

o Customer Identification will also be carried out in respect of non-account holders

approaching bank for high value one-off transaction as well as any person or entity

connected with a financial transaction which can pose significant reputational or

other risks to the Bank.

7.3 Small Deposit (No Frills) Accounts:

With a view to ensuring financial inclusion such that persons, especially those belonging

to low income group both in urban and rural areas, who are not able to produce such

documents required by the Bank to satisfy about their identity and address, are not denied

banking services, branches may open Small Deposit (No Frills) accounts, for natural

persons only, with relaxed KYC standards, as detailed in the operating guidelines. Persons

desirous of opening such accounts can keep aggregate balances not exceeding Rs.

50,000/- (Rupees fifty thousand only) in all their accounts taken together and the total

credit, again in all accounts taken together, should not exceed Rs. 1,00,000/- (Rupees one

lac only) in a year.

If at any point, the balances in all his/her accounts with the Bank (taken together) exceeds

Rs. 50,000/- (Rupees fifty thousand only) or total credit in all accounts taken together

exceeds Rs. 1,00,000/- (Rupees one lac only) in a year, no further transactions will be

permitted until full KYC procedure is completed. Bank would notify the customers when

the balances reach Rs. 40,000/- (Rupees forty thousand only) or total credit in a year

reaches Rs. 80,000/- (Rupees eighty thousand only) so that appropriate documents, for

complying with full KYC requirements are submitted well in time to avaoid blocking of

transactions in the account.

7.4 Monitoring and Reporting of Transactions

Monitoring of transactions will be conducted taking into consideration the risk profile of

the account. Special attention will be paid to all complex, unusually large transactions and

all unusual patterns, which have no apparent economic or visible lawful purpose.

Transactions that involve large amounts of cash inconsistent with the normal and expected

activity of the customer will be subjected to detailed scrutiny.

System supported monitoring of transactions will be done by the AML team under the

Principal Officer, based on alerts thrown up by the AML software acquired by the Bank

and on the basis of feedback/inputs from LHOs, Administrative Offices, Regional

Business Offices and respective relationship points. Simultaneously, however, relationship

points will maintain oversight over the transactions with a view to identifying suspicious

transactions and bringing them to the notice of the Principal Officer.

After due diligence at the appropriate level in the Bank, transactions of suspicious nature

and/or any other type of transaction notified under PMLA will be reported by the

Principal Officer to Financial Intelligence Unit – India (FIU-IND), the appropriate

authority. A record of such transactions will be preserved and maintained for the period as

prescribed in PMLA.

Transactions in the accounts will also be monitored with a view to timely submitting, the

Cash Transaction Report (CTR) in respect of cash transactions of Rs. 10,00,000/- (Rupees

ten lacs only) and above undertaken in an account either singly or in an integrally

connected manner.

All cash transactions, where forged or counterfeit Indian currency notes have been used,

shall also be reported immediately by the branches, by way of Counterfeit Currency

Reports (CCRs) to the Principal Officer, through proper channel, for onward reporting to

FIU-IND.

7.5 Closure of Accounts

Where the appropriate KYC measures could not be applied due to non-furnishing of

information and/or non-cooperation by the customer, the account can be considered for

closure or terminating the banking/business relationship. Before exercising this option, all

efforts will be made to obtain the desired information and, in the event of failure, due

notice, will be given to the customer explaining the reasons for taking such a decision.

The competent authority to permit closure of such accounts shall be the Branch Head

where the relationship level is RM-PB. In all other cases, Asst. General Manager

(Administration) at the respective Administrative office shall be the competent authority

to permit closure of such accounts.

7.6 Risk Management

While the Bank has adopted a risk based approach to the implementation of this Policy, it

is necessary to establish appropriate framework covering proper management oversight,

systems, controls and other related matters.

Bank’s Internal Audit of compliance with KYC/AML Policy will provide an independent

evaluation of the same including legal and regulatory requirements. Concurrent/ Internal

Auditors shall specifically check and verify the application of KYC/AML procedures at

the branches and comment on the lapses observed in this regard. The compliance in this

regard will be placed before the Audit Committee of the Board at quarterly intervals.

The Principal Officer designated by the Bank in this regard will have overall responsiblity

for maintaining oversight and coordinating with various functionaries in the

implementation of KYC/AML/CFT policy. However, primary responsibility of ensuring

implementation of KYC/AML/CFT Policy and related guidelines will be vested with the

respective Business Groups/Circles/SBUs. Suitable checks and balances in this regard will

be put in place at the time of introducing new products/procedures as also at the time of

review of existing products/procedures for overall risk and compliance management. For

this purpose, each Business Group/Circle/SBU will designate an official as Money

Laundering Reporting Officer (MLRO) who would ensure proper implementation and

reporting, as per provisions of this Policy, to the Principal Officer.

8. Employee Training

All employee training programmes, of 6 days’ duration or more, will have a module on

KYC Standards/AML/CFT Measures so that members of the staff are adequately trained

in KYC/AML/CFT procedures.

9. Recruitment/Hiring of Employees

KYC norms/AML standards/CFT measures have been prescribed to ensure that criminals

are not allowed to misuse channels of the Bank. Bank will put in place necessary and

adequate screening mechanism as an integral part of its recruitment/hiring process of

personnel.

10. Customer Education

The Bank recognizes the need to spread awareness on KYC, Anti Money Laundering

measures and the rationale behind them amongst the customers and shall take suitable

steps for the purpose.

11. Introduction of New technologies

Bank will pay special attention to the money laundering threats arising from new or

developing technologies and take necessary steps to prevent its misuse for money

laundering activities. Bank will ensure that appropriate KYC procedures are duly applied

to the customers using new technology driven products.

12. KYC for the existing accounts

While the KYC guidelines will apply to all new customers, the same would be applied to

the existing customers on the basis of materiality and risk. However, transactions in

existing accounts would be continuously monitored for any unusual pattern in the

operation of the accounts. On the basis of materiality and risk the existing accounts of

companies, firms, trusts, charities, religious organizations and other institutions are

subjected to minimum KYC standards which would establish the identity of the natural /

legal person and those of the ‘ beneficial owners’. Similarly, the Bank will also ensure

that term / recurring deposit accounts are subject to revised KYC procedures at the time of

renewal of the deposits on the basis of materiality and risk.

13. Branches and subsidiaries outside India

This policy shall also apply to the branches, subsidiaries and majority owned joint

ventures located abroad to the extent local laws of that country permit. Based on this

policy, each foreign office is required to put in place an Anti-Money Laundering Policy

(duly approved), which shall also contain the KYC Guidelines and Suspicious Transaction

Reporting Procedures as may be required by the rules and regulations of the host country.

14. Correspondent Banking

This policy will apply to our dealings with correspondent banks. For correspondent

banking relationship an appropriate due diligence procedure will be laid down keeping in

view KYC standards existing in the country where the correspondent bank is located and

the track record of the correspondent bank in the fight against money laundering and

terrorist financing.

15. Miscellaneous: • Information collected from the customers for KYC compliance should be relevant to

the perceived risk, not intrusive and should be treated as confidential. The same is not to be used/divulged for cross selling or any other such purpose.

• Any remittance of funds by way of demand drafts, mail/telegraphic transfer or any other mode and issue of travellers’ cheques for value Rs.50,000 and above is effected only by debit to customer’s account or against cheques/drafts and not against cash.

• Provisions of Foreign Contribution (Regulation) Act, 1976, as amended from time to time, wherever applicable, should be strictly adhered to.

16. Principal Officer

The Chief General Manager (Banking Operations) shall be the Principal Officer for KYC/AML/CFT matters who shall be responsible for implementation of and compliance with this policy. His illustrative duties, in this regard, will be as follows:- • Overall monitoring of the implementation of the Bank's KYC/AML/CFT policy. • Monitoring and reporting of transactions, and sharing of information, as required

under the law. • Interaction with MLROs in Business Groups/SBUs for ensuring full compliance with

the Policy • Timely submission of Cash Transaction Reports (CTRs), Suspicious Transaction

Reports (STRs) and Counterfeit Currency Reports (CCRs) to FIU-IND

• Maintaining liaison with the law enforcement agencies, banks and other institutions which are involved in the fight against money laundering and combating financing of terrorism.

• Ensuring submission of periodical reports to the Top Management /Board. 17. Review of the Policy

The Policy will be reviewed as and when considered necessary by the Board.

********

Back to Index

ASST GENERAL MANAGER/ CHIEF MANAGER: - FOR SANCTION

APPRAISAL MEMORANDUM UNDER SME SMART SCORE Branch:

The proposal conforms to the extant instructions of the scheme. The scores awarded under credit scoring criteria are as under SEGMENT : C&I / SSI / SBF

SEGMENT MIN. SCORE MARKS SCORED Personal Details 15/30 Business Details (or) Greenfield ventures

25/50








7.Line of activity 8.Year of Incorporation

9.Banking with SBI since 10.IRAC Status 11.Details of Associate Concerns/Family Concerns and their Bankers Any NPA’s among associates?

12.Date of last sanction (not applicable for fresh exposures)

13. Position of the account as on (Rs in lakhs) Facility Limit M.V A.V D.P O/S Irregularity if any (Not applicable for new units) 14. Brief background & History :-( to be brief and in bullet points only) (Comments on management, products, tie-up arrangement if any, quality approvals/certifications etc) 15.Performance and financial indicators: Rs.in lakhs.

31 March

YR.BEFORE LAST

Audited

LAST YEAR

Audited

CURRENT YEAR

Estimates

FOLLOWING YEAR

Projections Domestic Sales Export Sales Net Sales Profit After Tax PAT/ Net Sales (%) Cash Accrual Paid Up Capital TNW TOL/TNW (times) Current Ratio

Comments on Financials ;( Brief bullet points only) 16.Term Loan: Project Details

Project Cost Rs. Bank Loan Recommended Rs. (As per assessment in annexure-III)

Debt /Equity 17. Working Capital Requirement: Working capital limit of Rs.------ has been assessed for the year --- and Rs.----has been assessed for the year -----, as per the Projected balance sheet method/traditional method as per the workings as on annexure-II. (After satisfactory review of the limits assessed for the first year, additional limits for the subsequent year shall be released. However documents for the higher of the limits to be obtained at the initial stage itself.) 18. Comments on conduct of Account: (covering irregularities, non-compliance, LC devolvement, BG invocations, etc.): Comments on Summations vis-à-vis sales

Period under review Credit summations Debit summations Gross Sales Opening Sundry Debtors Closing Debtors

Comments: 19. Whether (a) the name(s) of the Individual/Directors appear(s) in RBI’s list of defaulters/RBI’s list of willful defaulters & (b) the Individual/Directors name figures in ECGC’s caution list PARTICULARS DATE POSITION RBI Willful Defaulters list(Non-Suit Filed)Rs.25lacs and above

CIBIL List(Suit filed) Rs.25 lacs and above ECGC specific approval list 20. Comments on I&A and other audit reports, which have an impact on credit risk on the unit:, if any: Name of report Date of report Serious irregularities/

Adverse features remaining unattended

Comments in last I&A report & its

present status Company's audited Balance Sheet (Qualifications)

21. If the unit has scored less than 60% marks in any of the individual parameters in SME Smart Score, please comment critically on those parameters (even though the aggregate score may be more than 60%) 22. Recommendations; Recommended for sanction of Working Capital limit of Rs.

Term loan of Rs. Total limit -------------- On the terms and conditions as set out in annexure-IV. Signature Name Designation Date


Enclosure: Applicant’s application.& others Statement of Credit Score arrived as annexure -I.

Controlled by Signature Name Designation Date

Annexure-I CREDIT SCORING CRITERIA

Name of the Company / Firm : Name of the chief promoter / chief executive : (in case of partnership concerns, where the partners are having equal stake, the personal profile of the active promoter as decided by the concern could be taken) 1. Personal details : Sr. No.


Marks Scored

Criteria Marks

1 Age 5 18 to 24 25 to 49 50 to 59 60 to 65

3 5 1 0

2 No.of children 2 Upto 3 > 3

2 0

3 Owning a house 5 Own Not owning house

5 0

4 Academic qualifications 4 Professional Graduate/PG Metric Below Metric

4 2 1 0

5 Experience in the line of trade 5 > 5 years 2 to 5 years < 2 years

5 3 0

6 Spouse details 1 Employed Homemaker

1 0

7 Assessed for income tax 2 Assessed Not assessed

2 0

8 Deposit account with SBI (min. deposit should be Rs.10,000/- in the period under review)

5 3 Yrs. & above 6 M to < 3 Yrs. < 6 M

5 2 0

9 Have life insurance policy 1 Yes No

1 0

MARKS SCORED

30

Minimum score should be 15 marks

2. Business Score : 2.A For existing units which have not so far availed any loan from the Bank. If takeover from another Bank, takeover norms, prescribed by the bank are to be first evaluated and fulfilled. Sr. No.


Marks Scored

Criteria Marks

1 Years in business 5 5 Years & over 3 Years to < 5 1 year to < 3

5 3 1

2 Continuous net profits (before tax)

5 Last 3 years Last 2 years Last year

5 3 1

3 Sales show a rising trend 5 Last 3 years Last 2 years

5 3

4 Factory premises 3 Owned or over 5 years of lease Rented

3 0

5 Know-how 2 Specialised Common

2 0


1 0

7 Competition 4 Low Medium High

4 2 0

8 TOL/TNW (quasi equity to be added to TNW and reduced from TOL)

5 2 & Below > 2 but upto 3 > 3 but upto 4 > 4 but < 5

5 4 2 1

9 a Quality of receivables 5 Upto 3 months of sales > 3 but upto 4 months of sales > 4 months of sales

5 1 0

9 b Quality of finished goods inventory

5 Upto 1 month of sales > 1 but upto 2 months of sales

5 1

> 2 months of sales

0



5 3 0


5 > 2 1.6 To 2 < 1.5

5 2 0

MARKS SCORED

50

Items 10 & 11 are not applicable for working capital loans alone. In that case the score should be normalized for 50 (marks scored/40)*50 Minimum score should be 25 2B. For Greenfield ventures : Sr. No.


Marks Scored

Criteria Marks

1 Branch is in the know of business (includes cases where the project is appraised by consultants of repute)

10 Yes No

10 0

2 Manufacturing/servicing/trading process is well known to applicant to produce/service/trade the required quality and quantity of the product

5 Yes Mo

5 0

3 Location advantage 2 Yes No

2 0

4 Availability of utilities including labour

2 Easy Ok

2 0

5 Firm’s capacity to sell the product at the price and quantity

5 Good Ok

5 0


1 0

7 TOL/TNW (quasi equity to be added to TNW and reduced from TOL) Competition

5 1 and below > 1 upto 2 > 2 upto 3 > 3

5 4 3 0

8 a Quality of receivables as per projections

5 Upto 3 months of sales

5

> 3 but upto 4 months of sales > 4 months of sales

1 0

8 b Quality of finished goods inventory as per projections


5 1 0



5 3 0


5 > 2 1.5 to 2 < 1.5

5 2 0

MARKS SCORED

50 / 40

Minimum Marks : 25 out of 50 3. Collateral conditions: Sr. No.


Marks Scored

Criteria Marks

1 Equitable Mortgage of property : Value of property (if TDR or cash equivalent is offered as security multiply cash equivalent by 2 and add to the collateral value) / loan amount (%)

15 75% and over 50% to <75% 25% to <50% <25% NIL

15 10 5 3 0

2 Residential property as part of 1

5 Yes No

5 0

MARKS SCORED 20 Minimum Marks are 10 (except in cases where Collateral should not be asked as per Bank’s norms, where the minimum marks will be NIL)

Annexure-II Name of the Borrower: ASSESSMENT OF WORKING CAPITAL I. For SSI, SBF and Retail traders: Rs.in lakhs. 1.Projected Turnover Method (Nayak Committee Method)

Estimated Ist year

Projected 2nd Year

a. Estimated Sales for the Current year b. Working capital required (25% of ‘a’) Eligible Bank Finance (80% of ‘b’) Bank finance Required (A) 2.Assessment as per Traditional Method Estimated Purchases in the current Year Estimated Average Raw Material Holding at any time (Calculated at cost of Purchases)

Estimated Average holding of Stock in process and Finished goods at any one time (calculated at cost of Production)

Estimated Average Receivable outstanding at any one time Total Requirement Less estimated average credit enjoyed on purchases Less estimated average credit enjoyed on purchases Less Other Sources like unsecured loans, plough back of profits etc

Bank Finance Required (B) Working Capital Assessed/recommended A or B above which ever is higher i.e II.For Self Employed and Professionals 50% of Gross annual income as declared in their Income Tax return.

III.Comments on Production aspects: (covering location advantages, availability of raw material and other utilities like water, power, fuel, labour etc. IV.Brief Comments on Marketing Aspects:

V. i) Assessment of EPC limits: Rs.in lakhs

ii) Assessment of EBD limits:

Rs.in lakhs Sr. No Particulars Estimated

Ist year Projected2nd year

1 Estimated Exports 2

Exports on Usance bill basis

3 Usance period 4

Lead Time

5 No. of cycles in a year 6 Eligible EBD Facility 7 Limit requested by the unit 8 Limit recommended

iii) Brief Comments on the above limits: VI. Assessment of Non fund based limits: i)Assessment of LC limits: Rs.in lakhs

Annual Raw Material purchases

Monthly Raw Material purchases Monthly Raw Material purchases through LC’s @ % (A) Average Usance Period (B) Lead Time and transit period (C) Total of ‘B’ and ‘C’ (D) LC limits required (= A X D) Recommended LC Limits


Projected 2nd year

1 Estimated Exports 2 Exports - at cost 3 Lead time and usance period

(includes order period / manufacturing period etc.)

4 No. Of Cycles in a year 5 EPC requirement per cycle 6 Less:- Margin on EPC – % 7 Eligible Limit 8 EPC limit recommended

Assessment of BG limits: Rs.in lakhs

Outstanding BGs as on Add: BG’s required during the next 12 months, as under 1.Earnest Money deposit 2.Security Deposit 3.Advance Payment BG 4.Retention Money Deposit/Maintenance Guarantee 5. Guarantees on account of sales tax, commercial tax and excise duty payments

Less: Estimated maturity/cancellation of BG’s during the period . Requirements of BG’s Recommended BG limit

Brief comments on requirements of above limits:

Annexure-III Name of the Borrower: Assessment of Term Loan: 1.Project Details



Land &Buildings Plant& Machinery WC margin Contingencies Total project cost

Means of finance Own funds Borrowings from friends and relatives

Bank finance others

Total means of finance

Debt /Equity :

3. Details of capital expenditure i.e land and factory building as well as machinery proposed to purchase: 4. Remarks on cost of project & means of finance (in brief) 5. Term Loan Assessment: Rs.in lakhs Years 1

(Act) 2 (E)

3 (E)

4 (E)

5 (E)

6 (E)


DSCR Average DSCR 6. Project implementation schedule: 7. Comments on Commercial viability:




of trips per day


Annexure-IV Name of the Borrower: TERMS AND CONDITIONS

1. Facility Limit 2. Security Primary WC:

TL: Collateral

Personal Guarantee (Indicate Net worth of Guarantors with date of compilation of opinion reports)

3. Interest (Linked to SBAR)

CC(HYP): TL:

4. Margin(%) Stocks: Receivables: Cover Period: BG/LC (cash Margins):

Term loan:

4. Repayment CC(HYP):- Repayable on demand. TL:

5. Validity of Sanction, Review/Renewal

Sanction valid for two years. A review shall be made after 12 months.

6. Inspection Quarterly 7. Stock Statement To be submitted monthly. 7. Insurance 8. Processing fee 9. EM Charges 10. Commitment Charges CC(HYP):-

Term Loan:- 11. Penal Interest 12. Documents As per SME Documentation 13. Other Stipulations, if

any.

FORMAT FOR ANNUAL REVIEW /RENEWAL OF LOANS SANCTIONED UNDER SME SMART SCORE PROPOSAL FOR REVIEW OF WC AND TERM LOAN SANCTIONED UNDER ‘SME SMART SCORE' SCHEME. 1.Name of the unit 2 Constitution Proprietorship/Partnership/Private limited Company 3.Name of the Proprietor/partners/ /directors


5.Nature of activity 6. a).Date of Last Sanction/review b) Sanction is Valid up to


any CC TL LC/BG

8.Present Position of Accounts as on date (Rs. In lakhs)

Comments on Conduct of above accounts:

9.Financial parameters (Rs. In lakhs)

Year Earlier

Estimated (previous year)

Actual achieved (previous year)

Estimated (Current year)

Net sales PBT Cash Accrual

TNW TOL/TNW C R

Comments( to be commented on actuals for deviations over estimates, if any)

9. Conduct of WC a/c (Rs. In lakhs)

Annual Turn over estimated Rs. Annual Credit Summations in the account Rs. Value of the account: Rs. (Interest/Exchange/commission Booked) Cross selling Products Booked : (Give the name of the products booked) Retail Business Booked Number of retail loans and amount booked for the promoters/employees :

10. Whether earlier sanction terms complied with.

11. Whether irregularities observed in I&A report rectified.? If not present status

12.Other Comments ( from Risk Angle) (On associates, conduct of accounts, Competition, quality of products, CIBIL report for individuals or corporate as applicable etc., and other relevant

risks. Bullet points only)

14. Recommendations The Conduct of WC loan and Term loan has been reviewed and found satisfactory. The Credit Score for renewal of limits is as per annexure –I, is satisfactory. 1.Recommended for continuation of Working Capital limit of Rs. 2. Recommended for release of additional working capital limit of Rs. as per the original sanction on (give date) for the projected year----- On the above terms and conditions as already set out in the original sanction dated— Signature Name Designation Date



Credit Scoring Model for Renewal proposals Sr. No.


Marks Scored

Criteria Marks

1 Actual sales/projected sales 10 90% & above 70% to < 90% 50% to < 70% Below 50%

10 8 5 2

2 PBT/NS (%) 10 Increasing Flat Decreasing

10 5 1

3 Change in TOL/TNW during the year

5 Decreasing and upto 3 Decreasing but above 3 Increasing but upto 3 Increasing but above 3

5

3

3

0 4 Overall conduct of the

account and working of the unit

15 Excellent Good OK

15 10 5

5 Credit summations in the account during the preceding 12 months

10 90% & above 70 – 89% 50 – 69% < 50% (% of sales)

10 7 5

NIL MARKS SCORED 50

Minimum Marks should be 30/50 Veto Power if the account is unsatisfactorily conducted

iv) cheques are frequently returned

v) debit balance (outstanding) is over the drawing power for over 160 days in the year

vi) non-compliance of critical terms and conditions

(frequent devolvement of LCs and invocation of guarantees/non receipt of stock statements etc. have not been mentioned as they would be reflected in ii)

Appraised by Approved by Name Date

APPRAISAL NOTE FOR SME CREDIT CARD (Quantum of Finance Maximum Rs.10.00 lakhs)

PROPOSAL FOR SANCTION OF 1. 2. CREDIT SCORE: /60. (Minimum 36) (as per annexure-I) Segment : SSI/SBF/C&I 1.Name of the unit 2 Constitution Registration No. of the unit.( if applicable)

3.Name of the Proprietor/ Partners /directors


5.Nature of activity 6. Banking with us from

Existing Limits Proposed Limits CC(Hyp) CC(Hyp) TL TL

7.Details of Limits as on date. (Rs.in lakhs)

LC/BG LC/BG Total indebtedness 8.Brief History (Brief bullet points only) (on Management, products, marketing tie-up etc.,)

1. 2. 3. 4. 5.

9.Project Details (If term loan is required)

Project Cost Rs. Bank Loan Recommended Rs. (As per assessment in annexure-III) Debt /Equity-

10. Financial Position: (Rs in lakhs) Years 1

(Act.) 2 (Act.)

3 (Est.)

4 (Proj.)

Sales income Profit Profit/net sales Tangible Net worth TOL/TNW Current Ratio

11. Working Capital Requirement

Working capital limit of Rs. Has been assessed as per the Projected turnover method (Nayak Committee method) as per the workings as on annexure-II.

12. Adverse remarks unattended in last Inspection & audit report, if any.

13. Whether borrower/ promoters figure as defaulters in CIBIL report for individuals.

14. Details of Associate concerns. Any NPA’s

15. Terms & conditions i) Primary Security Hypothecation of plant & machinery purchased out of

bank finance. Hypothecation of all kinds of Stocks & receivables. ( cover period for receivables ----- days)

ii) Collateral Security (not applicable if sanctioned under CGTFSI)

iii) Guarantee Personal guarantee of Sri. (Indicate Net worth of Guarantors with date of compilation of opinion reports)

iv) Margins WC TL v) Documents As per SME documentation vi) Submission of Stock Statements

To be submitted annually. Submit once in the last quarter of the year.

vii) Validity WC loan is valid for 3 years, but is subject to annual review.

viii) Insurance Stocks/Equipment to be insured for full market value for all possible risks with bank clause.

ix) Inspection Quarterly/Half yearly. x) Repayment

xi)Rate of interest -------% above/below SBAR, effective rate; xii) Upfront fees/Processing Charges

xiii) Charges with ROC (If applicable)

16. Recommendations Recommended for sanction of Working Capital limit of Rs.

Term loan of Rs. Total limit -------------- On the above terms and conditions. Signature Name Designation Date


Enclosure: Applicant’s application & others

Controlled by Signature Name Designation, Date

Annexure-I SCORING MODEL - SME CREDIT CARD

NAME OF THE UNIT:-

Sr.No. And Parameters Max Marks Marks scored Criteria Marks

1. Age 3 18-30 31-45

46 & above

3 2 1

2. Owning House 3 Own(NM) Own(M)

Not owning

3 2 0

3. Academic Qualification 5

Technical Professional/PG

Graduates Less than grad.

5 4 3 2

4. Experience in line of trade 4

More than 5 yrs 3-5 years 1-3 years

Less than 1 yr

4 3 2 1

5. Loyalty(Deposits /Advances) 3

Dealing with SBI More than 3 yrs

1-3 years Less than 1 yr

3 2 1

6. Spouse details 2 Employed Home Maker

2 0

7. Assessed For IT 2 Assessed Not assessed

2 0

8. Has Life Insurance Policy 2 Yes No

2 0

9. Track Record of repayment of personal loan 3 Prompt/No loan

Irregular 3 0

10. Continuous Profits 5 Last 5 years Last 3 years

Last year

5 3 1

11. Sales show rising trend 5 Last 5 years Last 3 years

Last year

5 3 1

12. Marketing 3 Tie up arrngt.

in operation Ancillary Others

3 2 1

13. TOL/TNW 5

Less than 1 1 to 2 2 to 4

More than 4

5 4 3 0

14. CA/CL(Current Ratio) 5 More than 1.33

1 to 1.33 Less than 1

5 3 0

15. D.S.C.R. 5

More than 2 1.5 to 2 1 to 1.5

Less than 1

5 3 2 0

16. Routing of sales turnover through the account 5

100% 75% 50%

<50%

5 4 3 1

TOTAL(NORMALISED TO 60) 60 NB: In case, any of the above parameters is not applicable, the scoring should be normalised out of 60.

Annexure-II Name of the Borrower: ASSESSMENT OF WORKING CAPITAL I. For SSI, SBF and Retail traders: Projected Turnover Method (Nayak Committee Method) A. Estimated Sales for the Current year Rs. B. Working capital required (25% of A) Rs. Eligible Bank Finance (80% of B) Rs. Bank finance Required Rs. Working Capital Assessed/recommended is II. For Self Employed and Professionals 50% of Gross annual income as declared in their Income Tax return.

III. Comments on Production aspects: (covering location advantages, availability of raw material and other utilities like water, power, fuel, labour etc. IV. Brief Comments on Marketing Aspects:

Annexure-III

Name of the Borrower: Assessment of Term Loan: 1.Project Details



Plant& Machinery Land &Buildings WC margin Contingencies Total project cost

Means of finance

Own funds Borrowings from friends and relatives

Bank finance others Total means of finance

Debt /Equity- 2. Term Loan Assessment: Rs.in lakhs Years 1

(Act) 2 (E)

3 (E)

4 (E)

5 (E)

6 (E)


DSCR Average D.S.C.R- 3. Details of machinery/equipment proposed to purchase: 4. Project implementation schedule:




of trips per day


ANNUAL REVIEW OF SME CREDIT CARD

PROPOSAL FOR REVIEW OF WC AND TERM LOAN SANCTIONED UNDER ‘SME CREDIT CARD’ SCHEME. 1.Name of the unit 2 Constitution Proprietorship/Partnership/Private limited Company 3.Name of the Proprietor/partners/ /directors


5.Nature of activity 6. Date of Last Sanction/review


any CC TL

8. Present Position of Accounts as on date of review. (Rs. In lakhs) LC/BG Total indebtedness 9. Conduct of WC a/c (Rs. In lakhs)

Annual Turn over estimated Rs. Annual Credit Summations in the account Rs. (Atleast 50% should be routed in the account, other wise sanctioning authority has to take a view on continuation of facility) Value of the account: Rs. (Interest/Exchange/commission Booked) Any Cross selling Products Booked : (Give the name of the product booked)

10.a) Whether earlier sanctioned terms complied with? b) Comments on non-achievement of estimated sales/profit. c)No.of times the account was irregular last year and reasons.

11.Comments (from risk angle) (On other associates, Competition, quality of products, I&A comments, CIBIL report for individuals etc., and other relevant to Risks. Bullet points only)

11. Recommendations The Conduct of WC loan and Term loan has been reviewed and found satisfactory. Recommended for continuation of Working Capital limit of Rs. On the above terms and conditions as already set out in the original sanction dated— (mention the date) Signature Name Designation Date


SME ADVANCES - CHECK LIST

1 Application Application

Bio Data form / Feed Back form

DD for Processing fee / Advocate fee / Valuation fee

2 Proprietor / Brief Profile

Partners / Photo

Guarantors Passport/EC ID Card/Driving Licence

Telephone Bill / Ration Card

PAN Card

IT Return for 2 years

Assets & Liabilities Statement

3 Unit Partnership Deed & Partnership Letter

Memorandum & Articles of Association

Certificate of Incorporation/Commencement

Board Resolution

Search Report from Registrar of Companies

SSI Registration

Panchayat Licence

PAN Card

IT Return for 2 years

ST Return for 2 years

Project Report

Power Allocation

Plan / Estimate / Invoices

Pollution Control Clearance

Lease Agreement for hired premises

4 Balance Sheet Actual - Past 2 years

Estimated - Current Year

Projected - Next Year

Projected - 6 years [for Term Loan]

CMA form

5 Associate Units Brief Profile

Balance Sheet

Opinion Report from Bankers

6 Renewal / Stock Statement

Enhancement Last inspection report

Term Loan Review

Copy of last sanction note

Confirmation of irregularity, if any

7 Take over Copy of sanction letter

Statement of account for 1 year

Credit Information Report

8 Property Original Title Deed

Prior Deeds

Land Tax Receipt

Building Tax Receipt

Possession Certificate

Location Certificate

Location Sketch

Non-RR & LA Certificate

EC for 30 years Back to

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sme_book

Documents

credit requirements

line of credit

petro credit

swarojgar credit card

indexartisan credit

revolving cash credit

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