Business Loan

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