Hypothecation of the assets acquired out of the finance

Co-applicant Mandatory for loans above Rs.75000/- . Spouse / Family Member / Co-worker can be a coapplicant / Guarantor

To be decided on a periodical basis

Interest type: Fixed

Rs. 3% + GST

1. Late Payment fee: 2.00% per month (24% per annum) for the defaulted amount for the defaulted period.
2. Pre-closure charges: 4% of principal outstanding
3. Penalty for cheque bounce / NACH Return : Rs. 500+ GST
4. Change of Bank Account: Rs. 400 + GST

Direct to the supplier / dealer by debit to the loan account.

Direct to the supplier / dealer by debit to the loan account.

Insurance coverage (ADLD-Accidental Damage and Liquid Damage) mandatory for all household appliances, Electronic Goods, Wellness equipment etc.

1. Loan application
2. KYC documents (AADHAAR mandatory)
3. Identity Proof: Aadhaar Card / PAN Card / Driving License / Voter’s ID / Passport
4. Address Proof: Aadhaar Card / Passpor t/ Bank Account Statement / Lease / Property purchase Agreement / Utility Bill (not more than 3 months old) / Driving License
5. Estimate / Performa Invoice

Income documents:

1. Salaried – Latest form 16, 3 months pay slip/ Bank account statement for 6 months into which salary credited, Salary certificate
2. Pensioners- Pension book, Bank account statement evidencing the pension credited
3. Self Employed/Non-Salaried- Last 2 years ITR (with minimum 6 months gap between 2 filings), 6 months account statement with a monthly credit of Rs. 10K
4. Business Proof (for self-employed applicants): GST Registration and Filing Documents/ Partnership Deed/Certificate of Practice/ MOA & AOA/ Shop Act License
5. Documents for surrogate-As per column 3 (Eligibility)

1. Loan cum Hypothecation agreement
2. 2 Security cheques- and NACH Mandate
3. Original invoice / Bill (Post disbursement)
4. Land Tax Receipt / Copy of title deeds

To be decided on a periodical basis

1. Customer can either apply for a consumer durable loan online through the LFS website or visiting our branch office / LFS Counter in dealer locations by submitting a duly filled loan application form along with the necessary documents.
2. Cibil Report / Equifax Report / CRIF Highmark reports to be generated in all cases. (Cibil + Any one of the other.)
3. Repayment capacity to be calculated using the FOIR Method by taking into the monthly obligations. Maximum FOIR 60% to be insisted.

Age deviation, Cibil Score Deviation, and waiver of insurance shall be within the delegation of Head-Credit & Risk.

Unsecured

Co-applicant Mandatory for loans above Rs. 1 L. Spouse / Family Member / Co-worker can be a coapplicant / Guarantor

To be decided by the Committee
Interest type: Fixed

3% + GST (Minimum Rs. 300/-)

1. Late Payment fee: 2% month (24% per annum) for the defaulted amount for the defaulted period.
2. Pre-closure charges: 4% of principal outstanding
3. Penalty for cheque / NACH bounce: Rs. 500+ GST
4. Change of Bank Account: Rs. 400 + GST

Disbursement to the Customer bank account given at the time of application. No disbursement is allowed to third party bank account. It is not mandatory to disburse the amount to the salary credited account. Can disburse to any bank account in the name of applicant.

Field visit required if applicant not staying in the address mentioned in Aadhar or staying in a rented house.

CLI shall be insisted

1. Loan application
2. KYC documents (AADHAAR mandatory)
3. Copy of ID card issued by Employer.
4. Professional membership Proof (ID Card or Membership Certificate.
5. Identity Proof: Aadhaar Card / PAN Card / Driving License / Voter’s ID / Passport
6. Address Proof: Aadhaar Card/ Passport / Bank Account Statement / Lease / Property purchase Agreement / Utility Bill (not more than 3 months old) / Driving License

Income documents:

1. Salaried – Latest form 16, 3 months' pay slip / Bank account statement for 6 months into which salary credited, Salary certificate
2. Self Employed / Non-Salaried- Last 2 years ITR (with minimum 6 months gap between 2 filings), 6 months account statement with a monthly credit of Rs. 15K. Business Proof (for self-employed applicants): GST Registration and Filing Documents / Partnership Deed / Certificate of Practice / MOA & AOA / Shop Act License.
3. In the case of pensioners: Pension book, Pensioner’s ID Card, and Bank account statement showing monthly pension credit

Loan agreement, DPN
2 Security cheques- and NACH

To be decided periodically

1. Customer can either apply for a personal loan online through the LFS website or visiting our branch office by submitting a duly-filled loan application form along with the necessary documents.
2. Cibil Report / Equifax Report / CRIF Highmark reports to be generated in all cases. (Cibil+ Any one of the others)
3. Repayment capacity to be calculated using the FOIR Method by taking into the monthly obligations. Maximum FOIR 60% to be insisted.

Age deviation, Cibil Score Deviation, and waiver of insurance shall be within the delegation of Head-Credit & Risk.

1. Loan amount shall be restricted up to five times of the monthly Net salary of the employee, subject to compliance of FOIR norms
2. This policy applies to all full-time employees who are on the regular / permanent rolls of the Company / Group company who have completed two years unblemished service regardless of rank and position.
3. The total deductions from the monthly salary including the instalment of the staff loan availed shall not exceed 60% of the net take home salary.
4. At the time of applying for advance, there shall not be any loan / advance pending in the name of the applicant. Where there is outstanding balance against advance already granted, as a very special case and purely on merits, fresh loan will be granted but the amount remaining after adjusting the outstanding balance against existing loan / advance will only be paid.
5. There should be good credit score of above 650 (CIBIL)
6. There shall be minimum 3 years of service left in the Company for retirement.
7. Repayment in 60 monthly instalments through salary deduction. (Deferring of instalments is not permitted unless approved by competent authority in special circumstances such as Loss of Pay due to long leave on account of accident / sickness and any genuine legitimate reasons).
8. The applicant shall furnish an Irrevocable Letter of Authority in favour of the Company to deduct monthly instalments of the loan from the salary and also adjust any other payments / dues payable towards monthly instalments / repayment of the loan.
9. The employee shall in the event of his / her leaving the service of the Company either by resignation / retirement / termination during the currency of the loan period full repay / settle the outstanding balance if any before being relieved.
10. The applicant shall also authorize the Company to adjust other benefits including permissible terminal benefits, bonus, other payments due and payable to him / her against balance outstanding if any and also furnish an undertaking to repay / settle fully such balance advance amount immediately on leaving.
11. If the employee leaves the service of the Company without settling the dues, compounding interest calculated @ 22% will be levied on the balance amount due to the Company instead of the normal interest.
12. The employee will be relieved from service only after settling the loan account fully and satisfactorily.
13. The applicant’s Spouse / Parent shall join as co-applicant if the loan amount is above Rs. 1 L

This is a special category of personal loans, also known as instant personal loans offered to existing Gold Loan customers with minimal to no documentation and quick disbursal of the loan amount, subject to noting of lien on the gold pledged.

Personal loan balance transfer is the process by which the principal outstanding of an existing loan with another lender is transferred to us. This is permitted within the above parameters

Top up of personal loan is permitted subject to compliance of the overall norms of the scheme.

1. Business Loan-Secured- (For the purpose of asset purchase / stock additions / business renovation)- Hypothecation in favour of LFS to be endorsed.
2. In case of loans with collateral: EM should be created in favour of LFS (LTV derived based on the valuation by the authorised external valuation expert on land and buildings provided by the applicant.)
3. Business Loan-Unsecured-No Hypothecation

1. Co-applicant mandatory for all types of business loans in the name of individuals and sole proprietorship concerns. Spouse / Family Member can be a co-applicant / guarantor.
2. Personal guarantee of all partners in partnership firms and major Directors in the case of companies.
3. Owner of property shall invariably join as co-applicant.
4. Deviation authority – Head-Credit &Risk

To be decided by the Committee
Interest type: Fixed

4% + GST (Minimum Rs. 400/-)

1. Late Payment fee: 2% month (24% per annum) for the defaulted amount for the defaulted period.
2. Pre-closure charges: 5% of principal outstanding
3. Prepayment charge- 5% of amount prepaid.
4. Penalty for cheque / NACH bounce: Rs. 500+ GST
5. Change of Bank Account: Rs. 500 + GST

1. Credit shield insurance to be taken in the name of the Applicant.
2. Assets created out of the finance to be insured with Bank clause

1. Credit bureau checking is a must for all parties to the contract even if additional party is included.
2. Minimum Cibil score should be 650 and above. Anything below this-deviation authority is Credit & Risk Head.
3. Never 60+ DPD in loans and 90+ DPD in credit cards
4. Not more than one 30+ DPD in last 12 months
5. No written off & Suit filed cases
6. Commercial Cibil to be checked for all entities.
7. CRIF Highmark Score to be checked in appropriate cases.

1. TVR is a must for all cases and should be satisfactory and positive
2. TVR to be done by Branch Head / Designated Employee.
3. IF Negative case will not be considered

1. Field verification should be done by designated verifying officers
2. Selfie photo of residence is a must along with another residence photo.
3. Selfie photo Shop / Business Establishment along with another 8 photos showing all sides of the Shop / Business establishment. Nearest shops, Landmarks (Banks / Temple / Govt Offices / Schools)- Not applicable for Individuals who purchase Equipment / Machines.
4. Residence Field verification is mandatory for all cases of applications.
5. Field Investigation must be done for all cases.

Process:

1. The Field Investigation report is to be prepared by designated verifying officers / Branch Heads
2. FI Report should contain details of applicant, co applicant and guarantor if any and report should be properly scrutinised by verifying officers with regard to residence, income source and their stability and also living standard of the customer
3. A field investigation report should contain all details about the applicant, co-applicant, source of income also that of the guarantor if any
4. If at any point of time guarantor is not a blood relation and staying separately from applicant residence, in such cases residence verification should be done of guarantor’s house as well.
5. A selfie photo of residence or office with additional photo should be taken along with other photos of Shop / Business establishment.

1. Minimum 6 Month in case of owned House-Deviation – Credit & Risk Head
2. Minimum 12 months stability in case of rented house – Deviation Credit & Risk Head
3. If current residence is owned-No minimum stability norm
4. LTR is mandatory for all cases (self-owned, parental, spouse owned, Co applicant / Guarantor owned.) Any deviation require approval from Credit & Risk Head

1. 6 months Bank statement to be verified
2. Not more than 3 cheque returns during 6 months
3. Minimum revenue as per GST should be Rs. 25 L in 12 months

Application Form

1. Loan Application form / CKYC Application form duly filled in with all details, photograph and signature separately for Applicant, Co-applicant & Guarantor(s) (To be verified and signed by the Branch Manager / Branch In-charge).
2. Mother’s name of Applicant, Co-Applicant and Guarantor(s) must be mentioned in respective Loan Applications without fail.
3. Separate Mobile number in the name of Applicant, CoApplicant and Guarantor/s should be mentioned in the Application Form.

The following are the list of documents that should be collected prior to login

1. KYC documents
2. Application form
3. FI verification report including Valuation report by verifying officers
4. Financials, ITR, GST Payslips, Bank statement etc, Latest LTR
5. 6 months latest banking transactions
6. Property documents copy (in case of mortgage loan)

Agreement

Duly filled and signed Agreement Kit.

Property Document (For Mortgagebacked loans)

1. Title deed
2. Prior deed
3. Latest land tax receipt
4. Encumbrance certificate
5. Possession certificate
6. Location sketch.

Mortgage of property

The loan approved against the collateral security of any Mortgage asset provided by the borrower, the same must be clearly mentioned in the CAM by the approval authority. The following data should capture in the CAM

1. Area (In ARE) of the property
2. Location of the property
3. Valuation done by the authorised person.
4. Legal verification of all mandatory documents.

The Creation of Mortgage follows the steps mentioned below from the login of documents for appraisal to Disbursement of loan amount.

1. Financial approval (The approving authority’s approval on the basis of assessing the documents provided for checking the applicant’s repayment capacity)
2. Verification of Documents (if the applicant gets the financial approval, The documents should be submitted to the Legal Advisor for taking the Legal report)
3. Valuation Report.
4. Mortgage creation (The mortgage should be created before disbursement and the documents should be collected prior to disbursement)

EMI Cheques / NACH

1. Completed and signed EMI Cheques (3-5 Nos)
2. NACH mandate – (2 Nos) including one Security NACH mandate.
3. EMI cheques can be excluded if the mandate registered by using Debit card / Net banking.

For the operational convenience Repayment / Collection dates are specified and pre-fixed.

1. The Applicant / Borrower has the liberty to choose any one of the convenient date as Repayment / Collection due date.
2. The repayment due date once opted cannot be altered as it would upset the entire accounting system.
3. Branch / Field Staff sourcing business should first obtain the choice of the borrower and then fix the Periodical instalment due date.
4. The Borrower, Co-borrower & Guarantor(s) should be clearly told about the first Periodical instalment due date fixed for arranging funds accordingly.
5. For the number of days in excess of 30 days, broken period interest shall be recovered along with the first instalment.

Photograph & KYC Documents

1. Photograph on the Application / KYC Form required.
2. Copy of valid ID proof with photograph and Address proof self-attested by the Applicant, Co-applicant & Guarantor(s) and verified with original by the Branch Manager with remarks “Verified with Original”.

Income Proof Documents

Valid income proof prescribed for individuals (salaried/business) / partnership firm / proprietary concerns / Companies / Trusts etc

Proprietary Firms / Partnership Firms / LLP / Private Limited Ltd / Public Limited Company.

1. Last 6 months GSTR
2. Last 3 Assessment Year Income Tax Return
3. Last 3 Financial year Annual Report
4. Financial statements projection for the nearest Financial Year based on the performance of past year.
5. Last 6 months bank statement.

Residence Proof (Self Attested Photocopy)

Any one of the following:

1. Passport
2. Aadhar Card
3. Ration Card
4. Telephone Bill
5. Electricity Bill
6. LPG Connection proof
7. Municipal Water Bill
8. Post-Paid Cell phone Bill
9. Driving Licence
10. Credit Card Bill
11. Lease Deed (for salaried segment only)
12. Printed Insurance Premium Receipt
13. Bank Passbook with full address
14. Ownership proof in form of Sale Deed / Power of Attorney

Statutory Licence

1. GST Registration certificate
2. Udyog Aadhar
3. Registration certificate from statutory bodies
4. Registration certificate / Membership ID issued by govt approved bodies and organisations.
5. License from Local Body
6. All the required license from regulatory bodies

Identity Proof (Self attested photocopy)

Any one of the following:

1. Passport
2. Aadhar Card
3. PAN Card
4. Voter’s ID Card
5. Driving Licence
6. Bank Passbook with photo attested by Banker
7. Employment ID Card (applicable to those working in Multinational Companies/Public Sector Units / Public Limited Companies / Government Companies).

Signature Verification

Age deviation, Cibil Score Deviation, and waiver of insurance shall be within the delegation of Head-Credit & Risk.

1. Forward scanned copies of the required documents to Corporate Office for processing.
2. Sanction / rejection of loan as communicated by Credit Department, should be intimated to the applicants immediately on getting such information from Corporate Office

1. Business Loan-Secured- (For the purpose of asset purchase / stock additions / business renovation)- Hypothecation in favour of LFS to be endorsed.
2. In case of loans with collateral: EM should be created in favour of LFS (LTV derived based on the valuation by the authorised external valuation expert on land and buildings provided by the applicant.)
3. Business Loan-Unsecured-No Hypothecation

1. Co-applicant mandatory for all types of business loans in the name of individuals and sole proprietorship concerns. Spouse / Family Member can be a co-applicant / guarantor.
2. Personal guarantee of all partners in partnership firms and major Directors in the case of companies.
3. Owner of property shall invariably join as co-applicant.
4. Deviation authority – Head-Credit &Risk

To be decided by the Committee
Interest type: Fixed

4% + GST (Minimum Rs. 400/-)

1. Late Payment fee: 2% month (24% per annum) for the defaulted amount for the defaulted period.
2. Pre-closure charges: 5% of principal outstanding
3. Prepayment charge- 5% of amount prepaid.
4. Penalty for cheque / NACH bounce: Rs. 500+ GST
5. Change of Bank Account: Rs. 500 + GST

Disbursement to the Customer bank account given at the time of application or direct payment to the supplier.

1. Credit shield insurance to be taken in the name of the Applicant.
2. Assets created out of the finance to be insured with Bank clause

1. Credit bureau checking is a must for all parties to the contract even if additional party is included.
2. Minimum Cibil score should be 650 and above. Anything below this-deviation authority is Credit & Risk Head.
3. Never 60+ DPD in loans and 90+ DPD in credit cards
4. Not more than one 30+ DPD in last 12 months
5. No written off & Suit filed cases
6. Commercial Cibil to be checked for all entities.
7. CRIF Highmark Score to be checked in appropriate cases.

1. TVR is a must for all cases and should be satisfactory and positive
2. TVR to be done by Branch Head / Designated Employee.
3. IF Negative case will not be considered

1. Field verification should be done by designated verifying officers
2. Selfie photo of residence is a must along with another residence photo.
3. Selfie photo Shop / Business Establishment along with another 8 photos showing all sides of the Shop / Business establishment. Nearest shops, Landmarks (Banks / Temple / Govt Offices / Schools)- Not applicable for Individuals who purchase Equipment / Machines.
4. Residence Field verification is mandatory for all cases of applications.
5. Field Investigation must be done for all cases.

Process:

1. The Field Investigation report is to be prepared by designated verifying officers / Branch Heads
2. FI Report should contain details of applicant, co applicant and guarantor if any and report should be properly scrutinised by verifying officers with regard to residence, income source and their stability and also living standard of the customer
3. A field investigation report should contain all details about the applicant, co-applicant, source of income also that of the guarantor if any
4. If at any point of time guarantor is not a blood relation and staying separately from applicant residence, in such cases residence verification should be done of guarantor’s house as well.
5. A selfie photo of residence or office with additional photo should be taken along with other photos of Shop / Business establishment.

1. Minimum 6 Month in case of owned House-Deviation – Credit & Risk Head
2. Minimum 12 months stability in case of rented house – Deviation Credit & Risk Head
3. If current residence is owned-No minimum stability norm
4. LTR is mandatory for all cases (self-owned, parental, spouse owned, Co applicant / Guarantor owned.) Any deviation require approval from Credit & Risk Head

1. 6 months Bank statement to be verified
2. Not more than 3 cheque returns during 6 months
3. Minimum revenue as per GST should be Rs. 25 L in 12 months

Application Form

1. Loan Application form / CKYC Application form duly filled in with all details, photograph and signature separately for Applicant, Co-applicant & Guarantor(s) (To be verified and signed by the Branch Manager / Branch In-charge).
2. Mother’s name of Applicant, Co-Applicant and Guarantor(s) must be mentioned in respective Loan Applications without fail.
3. Separate Mobile number in the name of Applicant, CoApplicant and Guarantor/s should be mentioned in the Application Form.

The following are the list of documents that should be collected prior to login

1. KYC documents
2. Application form
3. FI verification report including Valuation report by verifying officers
4. Financials, ITR, GST Payslips, Bank statement etc, Latest LTR
5. 6 months latest banking transactions
6. Property documents copy (in case of mortgage loan)

Agreement

Duly filled and signed Agreement Kit.

Property Document (For Mortgagebacked loans)

1. Title deed
2. Prior deed
3. Latest land tax receipt
4. Encumbrance certificate
5. Possession certificate
6. Location sketch.

Mortgage of property

The loan approved against the collateral security of any Mortgage asset provided by the borrower, the same must be clearly mentioned in the CAM by the approval authority. The following data should capture in the CAM

1. Area (In ARE) of the property
2. Location of the property
3. Valuation done by the authorised person.
4. Legal verification of all mandatory documents.

The Creation of Mortgage follows the steps mentioned below from the login of documents for appraisal to Disbursement of loan amount.

1. Financial approval (The approving authority’s approval on the basis of assessing the documents provided for checking the applicant’s repayment capacity)
2. Verification of Documents (if the applicant gets the financial approval, The documents should be submitted to the Legal Advisor for taking the Legal report)
3. Valuation Report.
4. Mortgage creation (The mortgage should be created before disbursement and the documents should be collected prior to disbursement)

To be decided periodically

Age deviation, Cibil Score Deviation, and waiver of insurance shall be within the delegation of Head-Credit & Risk.

1. Forward scanned copies of the required documents to Corporate Office for processing.
2. Sanction / rejection of loan as communicated by Credit Department, should be intimated to the applicants immediately on getting such information from Corporate Office