Types of Loan in Vijaya Bank:
Bank Overview
Against Govt. of India Relief Bonds :
Advances can be extended against the security of Govt. of India Relief Bonds issued in different series with 15% margin on the face value. Maximum amount of lending is limited to Rs.10 lakh.
Loans against Term Deposits :
Advances against Banks deposits are granted by way of Overdraft or Loans. Such advances should be normally made to depositors in whose names the deposits stand. Advances to third parties against Banks Deposits can be made with due sanction of the Authorities to whom powers are granted duly complying with the prescribed norms.
Deposits in the name of minors can be considered only for the benefit of minor depositors and an undertaking letter to the effect that the amount of advance would be utilised for the benefit of the minor should be obtained from the guardian.
The maximum duration may be from the date of advance to the date of maturity of the deposit. No. advance shall be made against the deposits belonging to a minor with guardian appointed by a court without court order. No. advance shall be made against deposits of other banks. The interest rate chargeable in respect of advances shall depend upon the category of the borrower and the purpose of the advance.
Advances against Shares : Advances against companies debentures and approved shares may be made either as loans or as Overdraft. While considering grant of advance against shares/Debentures, Banks must follow the normal procedures for pre-sanction appraisal and post sanction follow up.
Advances against primary security of shares/debentures may be given only to
Individuals
Stock & share brokers
Trusts & endowments.
Loans & Advances against demoted approved shares & debentures-Maximum Limit Rs.20 lakh.
Margin – 40% on demoted shares. Margin – 50% on physical / Info Tech shares on the lowest price as on the last Friday of the month in a recognized stock exchange or monthly average price whichever is lower.
Mortgage Loans for Housing
Loans for construction /repair /Renovation /Extension / Loans for purchase of plot/site.
Bridge loan for housing
Taking over of Housing Loan.
No. upper ceiling (for repairs Rs.10 lakh) for construction of house/flat.
Addition amount may be considered to the extent of face value of NSC /KVP /TD /S.V. of LIC Policy.
Loan up to 80% (Margin 20%)
The age of the house up to 30 years.
Maximum repayment is 15 to 20 years.
Age of the building up to 50 years for repair.
Loan amount up to 60 months salary/income.
Mortgage Loans against Immovable Properties
Immovable Property includes land, benefits to arise out of land and things attached to earth but does not include standing timber, growing crops or grass. Though the proposals of the following categories will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines.
Loans to Real Estate/Property developers/Builders.
Loans to construction of cinema Theatre.
Loans to Community/convention/Meeting/Marriage halls.
Loans to Educational Institutions.
Loans for setting up Hotels, Lodges, Holiday resorts, Private clubs.
Trading in Tobacco & Processing Advances to coffee curing and trading in coffee beans.
While granting advances against immovable properties branches should obtain legal opinion and valuation report on the properties in the Banks prescribed format covering all the aspects at the stipulated intervals. Property inspection should be carried out & the inspection report in the prescribed format shall be held on record. While accepting immovable property as security and in order to prevent deposit of fake title deeds, certain precautions are to be taken as envisaged in HOC 270/99
Advances against Gold Ornaments and Jewellery
Loans against gold ornaments and Jewelleries at the rate of Rs.575/- per gram (22 carat) or up to 80% of the appraised value whichever is lower may be granted in rural and semi-urban areas, particularly at the branches, where there is not much scope for commercial business. Jewel Loan can also be granted for agriculture purpose but the quantum of the loan should be need based and assessed on the basis of crops grown or investment proposed.
Advances against hypothecation of machinery
Where machines are proposed as security, the following procedure should be followed:
If the plant and machinery proposed to be hypothecated are permanently embedded to the earth and the land and building in which they are so embedded are owned by the applicant but have already been mortgaged by him to someone else, such Machinery can not be taken as security and therefore Branches should not take interest in such proposals.
If the land & building belongs to a person other than the applicant and has been taken on lease by the applicant, hypothecation of machinery installed thereon subject to proof of applicants ownership may be accepted even if it is embedded to the earth, provided a letter of no claim is received from the owner of the land. If the machinery proposed to be hypothecated is permanently fixed in the building owned by the applicant but which is not encumbered in any manner, the security of such machinery could be accepted.
The machinery proposed to be hypothecated should be generally new. If the machinery is second hand, the year of purchase, residual life and the normal depreciation to be allowed should be taken into account to determine the value of security.
Branch Manager should ensure that the machinery proposed to be hypothecated to the Bank is suitable for the project. After hypothecation of the machinery, it should be got insured against the risk of fire with Bank clause incorporated in the policy.
Small tin plate with wordings “Hypothecated to Vijaya Bank” should be fixed on each item of machinery to evidence that the plant & Machinery are under hypothecation to the Bank. If the borrower is a limited company, the charge created in favors of the Bank should be got registered with Registrar of companies. The Machinery should be got valued by a competent engineer approved by the Bank. The original invoice should be got scrutinised. The market value of machinery may be taken into account for purpose of valuation after considering its life. Whenever advances are granted against Machinery / equipments, branches should ensure that the prescribed margin on the value thereof is maintained at all times.
When advances are granted against motor vehicles, banks lien on such vehicles should be got registered with the Regional transport Authorities. The various instructions contained in the chapter on advances against motor vehicles and industrial advances should be followed.
Loans to Real Estate Property Developers and Builders
Though the proposals of Real Estate Property Developers and Builders will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines given at chapter 44 of MOA-Vol-3.and policy guidelines issued from time to time.
Loans to Construction of Cinema Theatres Production of Motion Pictures
Though the proposals of Real Estate Property Developers and Builders and loans to construction of Cinema theatres will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines given at chapter 44 of MOA-Vol-3.and policy guidelines issued from time to time.
Hypothecation of Book Debts and Receivables
While extending such facilities, the terms of contract with the drawee companies should be studied to ensure that the period of credit does not exceed 90 days generally. Though advances against book debts is now being classified as secured advances (HOC 189/2000), there is a ceiling (within the total limits) to be observed while exercising the delegated powers. In respect of advance against supply bills, irrevocable power of attorney executed by the borrower in favour of the bank should be got registered with the drawees on whom the bills are drawn or to whom supplies are made.
Loans to Educational Institutions:
Though loans to Educational Institutions will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines given at chapter 44 of MOA-Vol-3.and policy guidelines issued from time to time.
Loans for construction of Community Convention meeting and Marriage Halls
Though loans for construction of community/Convention/Meeting and Marriage Halls will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines given at chapter 44 of MOA-Vol-3.and policy guidelines issued from time to time.
Loans and Advances for Purchase of Estates
Though the proposals for purchase of Estates will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines given at chapter 44 of MOA-Vol-3.and policy guidelines issued from time to time.
Loans against Hypothecation of Vehicles
Eligibility:Salaried persons, Professionals & Self employed persons, Businessmen, agriculturists - Individuals aged between 21 to 55 years.
Purpose: For purchase of new two wheeler/Motorcar of any make for private use or Professional or Business use. For purchase of second hand / used two wheelers/Motorcar of not older than 5 years.
Quantum of loan: 80% of the cost of the Invoice value of the vehicle including accessories and registration expenses in case of new loans.
Rate of interest: Fixed rate (rate being intimated by credit department from time to time) processing charges / Inspection charges / Folio charges waived.
Security: Hypothecation of vehicles purchased from out of the Bank Loan
Guarantor: One guarantor acceptable to the Bank.
Repayment: Repayment in 60 Equated monthly installments.
Against pledge of goods or document of title to goods:
Advances against goods are allowed to traders for their trading activities, to manufacturers and producers for their requirements of raw materials etc and also to enable them to sell their products at better prices. The account is to facilitate the borrower to hold on to the goods for a short period, by creating a pledge in favour of the Bank. This is a type of account where the credit for a specified period of time, generally for one year and release of goods are allowed any number of times during the currency of the limit, within the limit/Drawing power. This limit cannot be allowed to be operated by the borrower by issuance of cheques or by deposit of cash and other instruments for collection. Advances against goods are allowed on the basis of pledge or hypothecation of goods depending upon the credit worthiness and the requirements of the borrower, keeping in mind that the security by way of pledge, where possible and practical is always preferable to hypothecation.
Advances should not be made against goods which are not the sold property of the borrower or where the borrowers right to sell is restricted.
Pledge of goods means bailment of goods as security for payment of debt or performance of a promise. This is a voluntary transfer of possession of goods. Delivery may be either physical or constructive. Pledge is created when the actual possession of goods is transferred to the Bank as security or by any other means by which delivery is affected, as in the case of endorsement and delivery of a document of title to the goods.
Hypothecation of other movable assets
While granting facilities on hypothecation basis, limited companies are preferred since charges on the securities can be got registered with the Registrar of Companies. Exceptions are made in case of borrowers who maintain good inventory control system.
When facilities are cash credit basis, It is necessary that the borrower should pass through the cash credit account all his business dealings. Advances against seasonal commodities should be got liquidated by the end of the season. The other instructions contained in the chapter on Advances against goods Manual of advances should be followed. Goods should be readily marketable and fast moving. Easily perishable and inflammable goods should not be accepted.
The advances should be granted against the security of those goods in which the borrower normally deals in. Seasonal goods should not be retained for more than one year without sanction of H.O. Goods whose quality and value cannot be easily determined should not be accepted In the case of manufactured goods, Branch Manager should verify the manufacturers invoices
While examining the invoices, it should be ensured that the goods are not held by the borrower on consignment basis or that supplier has a charge either on the goods or on their sale proceeds License or permits for dealing, storing, transporting or handling the relative goods where required from the concerned authorities should be held.
Advances against documentary bill evidencing dispatch of goods:
Limits considered for purchase / discount of bills should be commensurate with the business requirements of the borrowers, based on the normal credit assessment/appraisal.
In the case of usance bills, the usance period should not normally exceed 90 days unless otherwise specifically permitted. Purchase/discount of bills on drawees who had dishonoured the bills earlier drawn on them, should be avoided as far as possible. Re-purchase of bills which are returned unpaid except for technical reason are not permitted. Granting bills purchase/discount facility together with advances against book debts has to be avoided unless different drawees for the bills purchase/discount facility are properly and distinctly identified.
In the case of demand documentary bills documents of title to goods should be of a recent date covering consignments of approved goods in which the customer deals in and drawn on places to which the customer usually consigns goods. The facility of purchasing /discounting of bills should be made available only to those parties who have sanctioned limits for the purpose. The borrower is dealing with the same commodity /goods represented by bills and not others.
Trade Finance loan
Eligibility : Individuals/proprietary concerns/partnership firms, private limited companies or any legal entity engaged in business - retail trade, distributors, stockiest, commission agents, etc., are eligible for finance under this loan, for a period of 1 year, with the provision for yearly renewal.
Quantum of finance : Need based credit limit subject to a maximum of Rs 25 lakhs.
Nature of Loan:Cash credit.
Guarantor : A guarantor acceptable to the bank.
Bank Overview
Against Govt. of India Relief Bonds :
Advances can be extended against the security of Govt. of India Relief Bonds issued in different series with 15% margin on the face value. Maximum amount of lending is limited to Rs.10 lakh.
Loans against Term Deposits :
Advances against Banks deposits are granted by way of Overdraft or Loans. Such advances should be normally made to depositors in whose names the deposits stand. Advances to third parties against Banks Deposits can be made with due sanction of the Authorities to whom powers are granted duly complying with the prescribed norms.
Deposits in the name of minors can be considered only for the benefit of minor depositors and an undertaking letter to the effect that the amount of advance would be utilised for the benefit of the minor should be obtained from the guardian.
The maximum duration may be from the date of advance to the date of maturity of the deposit. No. advance shall be made against the deposits belonging to a minor with guardian appointed by a court without court order. No. advance shall be made against deposits of other banks. The interest rate chargeable in respect of advances shall depend upon the category of the borrower and the purpose of the advance.
Advances against Shares : Advances against companies debentures and approved shares may be made either as loans or as Overdraft. While considering grant of advance against shares/Debentures, Banks must follow the normal procedures for pre-sanction appraisal and post sanction follow up.
Advances against primary security of shares/debentures may be given only to
Individuals
Stock & share brokers
Trusts & endowments.
Loans & Advances against demoted approved shares & debentures-Maximum Limit Rs.20 lakh.
Margin – 40% on demoted shares. Margin – 50% on physical / Info Tech shares on the lowest price as on the last Friday of the month in a recognized stock exchange or monthly average price whichever is lower.
Mortgage Loans for Housing
Loans for construction /repair /Renovation /Extension / Loans for purchase of plot/site.
Bridge loan for housing
Taking over of Housing Loan.
No. upper ceiling (for repairs Rs.10 lakh) for construction of house/flat.
Addition amount may be considered to the extent of face value of NSC /KVP /TD /S.V. of LIC Policy.
Loan up to 80% (Margin 20%)
The age of the house up to 30 years.
Maximum repayment is 15 to 20 years.
Age of the building up to 50 years for repair.
Loan amount up to 60 months salary/income.
Mortgage Loans against Immovable Properties
Immovable Property includes land, benefits to arise out of land and things attached to earth but does not include standing timber, growing crops or grass. Though the proposals of the following categories will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines.
Loans to Real Estate/Property developers/Builders.
Loans to construction of cinema Theatre.
Loans to Community/convention/Meeting/Marriage halls.
Loans to Educational Institutions.
Loans for setting up Hotels, Lodges, Holiday resorts, Private clubs.
Trading in Tobacco & Processing Advances to coffee curing and trading in coffee beans.
While granting advances against immovable properties branches should obtain legal opinion and valuation report on the properties in the Banks prescribed format covering all the aspects at the stipulated intervals. Property inspection should be carried out & the inspection report in the prescribed format shall be held on record. While accepting immovable property as security and in order to prevent deposit of fake title deeds, certain precautions are to be taken as envisaged in HOC 270/99
Advances against Gold Ornaments and Jewellery
Loans against gold ornaments and Jewelleries at the rate of Rs.575/- per gram (22 carat) or up to 80% of the appraised value whichever is lower may be granted in rural and semi-urban areas, particularly at the branches, where there is not much scope for commercial business. Jewel Loan can also be granted for agriculture purpose but the quantum of the loan should be need based and assessed on the basis of crops grown or investment proposed.
Advances against hypothecation of machinery
Where machines are proposed as security, the following procedure should be followed:
If the plant and machinery proposed to be hypothecated are permanently embedded to the earth and the land and building in which they are so embedded are owned by the applicant but have already been mortgaged by him to someone else, such Machinery can not be taken as security and therefore Branches should not take interest in such proposals.
If the land & building belongs to a person other than the applicant and has been taken on lease by the applicant, hypothecation of machinery installed thereon subject to proof of applicants ownership may be accepted even if it is embedded to the earth, provided a letter of no claim is received from the owner of the land. If the machinery proposed to be hypothecated is permanently fixed in the building owned by the applicant but which is not encumbered in any manner, the security of such machinery could be accepted.
The machinery proposed to be hypothecated should be generally new. If the machinery is second hand, the year of purchase, residual life and the normal depreciation to be allowed should be taken into account to determine the value of security.
Branch Manager should ensure that the machinery proposed to be hypothecated to the Bank is suitable for the project. After hypothecation of the machinery, it should be got insured against the risk of fire with Bank clause incorporated in the policy.
Small tin plate with wordings “Hypothecated to Vijaya Bank” should be fixed on each item of machinery to evidence that the plant & Machinery are under hypothecation to the Bank. If the borrower is a limited company, the charge created in favors of the Bank should be got registered with Registrar of companies. The Machinery should be got valued by a competent engineer approved by the Bank. The original invoice should be got scrutinised. The market value of machinery may be taken into account for purpose of valuation after considering its life. Whenever advances are granted against Machinery / equipments, branches should ensure that the prescribed margin on the value thereof is maintained at all times.
When advances are granted against motor vehicles, banks lien on such vehicles should be got registered with the Regional transport Authorities. The various instructions contained in the chapter on advances against motor vehicles and industrial advances should be followed.
Loans to Real Estate Property Developers and Builders
Though the proposals of Real Estate Property Developers and Builders will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines given at chapter 44 of MOA-Vol-3.and policy guidelines issued from time to time.
Loans to Construction of Cinema Theatres Production of Motion Pictures
Though the proposals of Real Estate Property Developers and Builders and loans to construction of Cinema theatres will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines given at chapter 44 of MOA-Vol-3.and policy guidelines issued from time to time.
Hypothecation of Book Debts and Receivables
While extending such facilities, the terms of contract with the drawee companies should be studied to ensure that the period of credit does not exceed 90 days generally. Though advances against book debts is now being classified as secured advances (HOC 189/2000), there is a ceiling (within the total limits) to be observed while exercising the delegated powers. In respect of advance against supply bills, irrevocable power of attorney executed by the borrower in favour of the bank should be got registered with the drawees on whom the bills are drawn or to whom supplies are made.
Loans to Educational Institutions:
Though loans to Educational Institutions will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines given at chapter 44 of MOA-Vol-3.and policy guidelines issued from time to time.
Loans for construction of Community Convention meeting and Marriage Halls
Though loans for construction of community/Convention/Meeting and Marriage Halls will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines given at chapter 44 of MOA-Vol-3.and policy guidelines issued from time to time.
Loans and Advances for Purchase of Estates
Though the proposals for purchase of Estates will continue to be regarded as low priority, proposals of such categories may be entertained subject to fulfilling the eligible norms stated in HOC.5/2002 and guidelines given at chapter 44 of MOA-Vol-3.and policy guidelines issued from time to time.
Loans against Hypothecation of Vehicles
Eligibility:Salaried persons, Professionals & Self employed persons, Businessmen, agriculturists - Individuals aged between 21 to 55 years.
Purpose: For purchase of new two wheeler/Motorcar of any make for private use or Professional or Business use. For purchase of second hand / used two wheelers/Motorcar of not older than 5 years.
Quantum of loan: 80% of the cost of the Invoice value of the vehicle including accessories and registration expenses in case of new loans.
Rate of interest: Fixed rate (rate being intimated by credit department from time to time) processing charges / Inspection charges / Folio charges waived.
Security: Hypothecation of vehicles purchased from out of the Bank Loan
Guarantor: One guarantor acceptable to the Bank.
Repayment: Repayment in 60 Equated monthly installments.
Against pledge of goods or document of title to goods:
Advances against goods are allowed to traders for their trading activities, to manufacturers and producers for their requirements of raw materials etc and also to enable them to sell their products at better prices. The account is to facilitate the borrower to hold on to the goods for a short period, by creating a pledge in favour of the Bank. This is a type of account where the credit for a specified period of time, generally for one year and release of goods are allowed any number of times during the currency of the limit, within the limit/Drawing power. This limit cannot be allowed to be operated by the borrower by issuance of cheques or by deposit of cash and other instruments for collection. Advances against goods are allowed on the basis of pledge or hypothecation of goods depending upon the credit worthiness and the requirements of the borrower, keeping in mind that the security by way of pledge, where possible and practical is always preferable to hypothecation.
Advances should not be made against goods which are not the sold property of the borrower or where the borrowers right to sell is restricted.
Pledge of goods means bailment of goods as security for payment of debt or performance of a promise. This is a voluntary transfer of possession of goods. Delivery may be either physical or constructive. Pledge is created when the actual possession of goods is transferred to the Bank as security or by any other means by which delivery is affected, as in the case of endorsement and delivery of a document of title to the goods.
Hypothecation of other movable assets
While granting facilities on hypothecation basis, limited companies are preferred since charges on the securities can be got registered with the Registrar of Companies. Exceptions are made in case of borrowers who maintain good inventory control system.
When facilities are cash credit basis, It is necessary that the borrower should pass through the cash credit account all his business dealings. Advances against seasonal commodities should be got liquidated by the end of the season. The other instructions contained in the chapter on Advances against goods Manual of advances should be followed. Goods should be readily marketable and fast moving. Easily perishable and inflammable goods should not be accepted.
The advances should be granted against the security of those goods in which the borrower normally deals in. Seasonal goods should not be retained for more than one year without sanction of H.O. Goods whose quality and value cannot be easily determined should not be accepted In the case of manufactured goods, Branch Manager should verify the manufacturers invoices
While examining the invoices, it should be ensured that the goods are not held by the borrower on consignment basis or that supplier has a charge either on the goods or on their sale proceeds License or permits for dealing, storing, transporting or handling the relative goods where required from the concerned authorities should be held.
Advances against documentary bill evidencing dispatch of goods:
Limits considered for purchase / discount of bills should be commensurate with the business requirements of the borrowers, based on the normal credit assessment/appraisal.
In the case of usance bills, the usance period should not normally exceed 90 days unless otherwise specifically permitted. Purchase/discount of bills on drawees who had dishonoured the bills earlier drawn on them, should be avoided as far as possible. Re-purchase of bills which are returned unpaid except for technical reason are not permitted. Granting bills purchase/discount facility together with advances against book debts has to be avoided unless different drawees for the bills purchase/discount facility are properly and distinctly identified.
In the case of demand documentary bills documents of title to goods should be of a recent date covering consignments of approved goods in which the customer deals in and drawn on places to which the customer usually consigns goods. The facility of purchasing /discounting of bills should be made available only to those parties who have sanctioned limits for the purpose. The borrower is dealing with the same commodity /goods represented by bills and not others.
Trade Finance loan
Eligibility : Individuals/proprietary concerns/partnership firms, private limited companies or any legal entity engaged in business - retail trade, distributors, stockiest, commission agents, etc., are eligible for finance under this loan, for a period of 1 year, with the provision for yearly renewal.
Quantum of finance : Need based credit limit subject to a maximum of Rs 25 lakhs.
Nature of Loan:Cash credit.
Guarantor : A guarantor acceptable to the bank.
Repayment :Loan will before a period of 3years subject to riview every year.
Security : Immovable property @ 25% margin and/or other securities like NSC, Kvp and Govt. securities, SV of policies to the extent of the Limit.
For limits and Rs.10 Lakhs - Collateral security of stock is taken (insured and inspected annually)
Short term funds:
These are required for meeting working capital needs. They are raised from sources can provide funds only for a short period quickly and at a reasons cost, they are usually required for a period upto one year.
The Long term funds:
These are required to a great extent for meeting the fixed capital needs of the business. They are required for a period exceeding one year. The sources from which a business meets its financial requirement can be classified as follows:
According to the period:
Long term sources: Namely, shares, debentures long term loans etc.,
Short term sources: Namely, public, deposits, loans from banks, advances from customers etc.,
According to Ownership:
Own capital: Namely, share capital, retained earning and surpluses etc.,
Borrowed capital: Such as debentures, public deposits and Loans.
According to the source of generation:
Internal sources: Namely, retained earnings depreciations funds etc.,
External sources: Namely, securities such shares, debentures etc.,
V Cash loan
V-CASH is a very convenient loan that one can avail of to meet short-term credit needs for individuals / working women / pensioners / Senior Citizens. Purpose For meeting unforeseen short time credit needs of the applicants / family members which includes medical expenses, marriage of applicant / family members, purchase of consumer durables, etc.,
Eligibility: Salaried persons satisfying the following conditions.
Individual aged between 21 years and 55 years.
He / She is a permanent employee of :
State / Central Government, the Defence / Police force or Autonomous Body.
A public sector / joint sector undertaking or a Corporation.
Reputed Public Limited Company.
An established education institution / aided college / school.
Any private establishment coming under the perview of Provident Fund / Gratuity Act.
He / She has a minimum service, so as to ensure that the entire liability is liquidated at least one year prior to his / her retirement.
The salary of the applicant should be credited to his / her account with the branch and he / she should give a letter in duplicate addressed to the employer undertaking not to revoke the Salary Mandate, without obtaining consent from the Bank. This letter should be sent by Registered Post by the branch to the employer and proof of dispatch should be held on record. OR
Where the employer has no system of remitting the salary of his staff members for the credit of their bank accounts, loans can be granted by taking an undertaking from the employer to deduct the monthly installments / interest from the salary and to remit the same to the Bank till they hear to the contrary from the Bank.
Pensioners drawing Service Pension (RPR, Family Pensions etc.) through our Bank aged not more than 70 years
Professionals & Self Employed Persons such as Doctors, Engineers, Architects, Chartered Accountants, Lawyers, Consultants, Agriculturists, Business-men etc. aged not more than 65 years having independent income.
Quantum of Loan :
For Salaried persons: Where the salary is being remitted by the employer for the credit of SB / C.A/c of the beneficiary for at least 6 months prior to granting the loan and the mandate on salary is served on the employer with due acknowledgement -- 12 months average net take home salary with a ceiling of Rs.2 lakhs subject to maintenance of 40% take home salary on the Gross salary after reducing the EMI of the proposed loan.
In case of Non-salaried persons -- twice the annual income as per latest Income Tax Assessment Orders / Copy of returns filed, subject to a maximum of Rs. 2 lakhs.
For Pensioners -- 12 months gross pension with a maximum pension of Rs.1.00 lakh.
Nature of Facility :
Term Loan - for a period repayable more than 24 months
Demand Loan – for a period repayable in 24 months or below.
Operative Limit – Cash Credit [Miscellaneous] or Demand Loan with a ceiling of Rs 2.00 lakhs in either case (to only non Salaried persons).
Repayment : Entire loan has to be repaid with interest in not more than 48 equated monthly installments.
Operative Limit : Limit may be fixed for 18 months renewable after review.
Agriculture loan
Agricultural Advances - Direct
Direct loans to Agriculture and allied activities include loans to individual farmers or SHGs / JLGs of Farmers for the following purposes:
Short term loans for raising crops
Short term loans to traditional Plantation and Horticulture.
Pledge loans upto Rs. 10.00lakhs repayable in 12 months irrespective of whether farmers have availed crop loans or not.
Working capital and term loans for financing production and investment requirements for agriculture and allied activities.
Loans to small and marginal farmers for purchase of land for agricultural purposes.
Loans to distressed farmers indebted to Non-Institutional lenders against appropriate collateral or group security.
Loans granted for Pre-Harvest or Post- harvest activities such as spraying, weeding, harvesting, grading, sorting, processing and transporting undertaken by individuals, SHGs and Co-operative in rural areas.
Short term loans for allied activities such as dairying, Fishery, Piggery, Poultry, Bee Keeping etc.
Purchase of agricultural implements and machinery – Iron ploughs, harrows, house, land-levellers, bund formers, hand tools, sprayers, dusters, hay-press, sugarcane crushers, thresher machines etc.
Purchase of farm Machinery - Tractors, trailers, power tillers, tractor accessories viz. Disc ploughs etc.
Purchase of trucks, mini-trucks, jeeps, pick up vans, bullock carts and other transport equipments etc., for agricultural purpose i.e., transportation of farm inputs / outputs.
Purchase of plough animals
Construction of shallow and deep tube wells, tanks, etc.
Constructing, deepening, clearing of surface wells, boring of wells, electrification of well, purchase of oil engines and installation of pumpsets, etc.
Purchase and installation of turbine pumps, construction of field chanelles .etc.
Lift irrigation projects
Installation of sprinkler / drip irrigation system (Mocro Irrigation)
Purchase of generator sets for agricultural purpose
Bunding of farm lands, levelling of land, terracing of dry paddy lands into wet irrigable paddy lands, development of farm drainage, reclamation of soil lands and prevention of salinisation, reclamation of ravine lands, purchase bulldozers etc.
Construction of Bullock sheds, implement sheds, tractor and tractor sheds, vehicle sheds, farm stores etc.
Construction and running of warehouses, godowns, silos and cold storages.
Production and processing of hybrid seeds of crops
Development of dairying and animal husbandry in all its aspects
Development of Fisheries
Development of poultry, piggery, beekeeping / sheep, goat etc
Development of sericulture
Bio gas plants.
Direct Loans to Agriculture & Allied activities to Corporate, Partnership Firms & Institutions
Loans up to Rs.1.00 crore comes under Direct Agriculture.
Loans in excess of Rs.1.00 crore, to the extend of only one third portion over and above Rs.1.00 crore also come under direct agriculture
Indirect loans to Agriculture :
Loans in excess of Rs.1.00 crore to Corporate, Partnership Firms & Institutions, two thirds portion over and above Rs.1.00 crore come under indirect agriculture
Loans to Foor & Agro based processing units with investment cost on plant and machinery upto Rs.10.00 crore undertaken by those other than individuals, SHGs and Co-Operatives in rural areas.
Credit for purchase & distribution of fertilizers, pesticides, seeds etc.
Credit upto Rs.40.00 lakhs for purchase & distribution of inputs for the allied activities such as cattle feed, poultry feed etc.
Finance for hire purchase loans for distribution of agricultural machinery and implements.
Loans for construction and running of storage facilities-warehouse, market yards, godowns, silos, and cold storages designed to store agriculture produce / products irrespective of the location.
Advances to custom service units managed by individuals institutions or organisations who maintain a fleet of tractors, bulldozers, well boring equipment, threshers, combines etc. and undertake work for farmers on contract basis.
Finance for setting up of Agri Clinic and Agri Business Centers
Loans to ferments through primary agricultural credit societies (PACS), Farmers Service Societies (FSS), and Large Sized Advise Multipurpose Societies (LAMPS)
Loans to Co-operative Societies of farmers for disposing off the produce of members.
Financing farmers indirectly through the Co-operative system.
Loans upto Rs.30.00 lakhs for dealers in Drip irrigation / Sprinkler Irrigation / Agricultural Machinery irrespective of the location.
Loans to NBFCs for on lending to individual ferments or their SHGs public JLGs.
Loans granted to NGOs / MFIs for on lending to individual farmmers of through SHGs / JLGs
Micro, Small and Medium Enterprises
Salient features of lending to Micro, Small & Medium Enterprises (MSMEs):
direct finance
The Bank is encouraging credit flow to Small and Medium & Micro Enterprises. This consist of both manufacturing and service sectors.
Micro (Manufacturing) Enterprises
The are Enterprises engaged in the manufacture, production ,processing, preservation of goods and whose investment cost in Plant & machinery does not exceed Rs.25.00 lakhs.
Small (Manufacturing) Enterprises:
Are Enterprises engaged in the manufacture, production, processing, preservation of goods and whose investment cost in Plant & machinery does not exceed Rs.5.00 Crores .Original Cost excluding Land and Building and the items specified by the Ministry of Small Scale Industries.
Micro (Service) Enterprises
Enterprises engaged in providing / rendering of services, whose investment in equipment does not exceed Rs. 10.00 lakhs.
Small (Service) Enterprises
Enterprises engaged in providing / rendering of services, whose investment in equipment does not exceed Rs. 2.00 Crores . Original Cost excluding Land and Building and furniture fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act.2006.
The Micro and Small Service Enterprises will include Small Road and Water Transport Operators, Small Business, Professional and Self-employed persons and all other service enterprises as per the above definition. Advances rendered to units in the KVI Sector will also come under Micro & Small Enterprises.
Medium (Manufacturing) Enterprises
Are Enterprises engaged in the manufacture, production , processing, preservation of goods and whose investment cost in Plant & machinery is above Rs.5.00 Crores & up to Rs.10.00 crore . Original Cost excluding Land and Building and the items specified by the Ministry of Small Scale Industries vide their notification no. SO.1722(E) dated 05.10.2006
Medium (Service) Enterprises
Enterprises engaged in providing / rendering of services, whose investment in equipment is above Rs.2.00 Crores and upto Rs.5.00 crore. Original Cost excluding Land and Building and furniture fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act.2006.
Loans to Micro and Small Enterprises will come under Priority Sector, whereas loans to Medium Enterprises will come under Non-Priority Sector
INDIRECT FINANCE
Persons involved in assisting the decentralised sector in the supply of inputs to and marketing of outputs of artisans, village and cottage industries. Advances to co-operatives of producers in the decentralised sector viz. artisans, village and cottage industries. Loans granted by Banks to NBFCs for onlending to Small and Micro Enterprises.
Security: Loans upto Rs.5 lakh are collateral free.
Loans above Rs.5 lakh and upto Rs.25 lakh are also collateral free subject to good track record and financials of the unit.
Above Rs.25 lakh, collateral security and or third party guarantee.
Rating of MSME units:
Bank is adopting a multidimensional risk-rating model for SME advances to rationalise the cost of loans to MSME sector. There are three risk rating models adopted at present.
Model for exposures ranging from Rs.2 lacs to below Rs.1 crore.
Model for exposures ranging from Rs.1 crore to below Rs.3 crore.
Model with segmented approach for exposure of Rs.3 crore and above.
Bank also encourages rating of MSME units by approved rating agencies. The bank has signed a Memorandum of Understanding with Small and Medium Rating Agency (SMERA), CRISIL & ICRA to enable independent third-party assessment of the MSME units.
The rating fee payable to various agencies for getting the MSME units rated is based on the size of the enterprise. SMERA, CRISIL, & ICRA have been empanelled as agencies eligible for subsidy towards the rating fee charged from Micro & Small Enterprises units operated through the National Small Industries Corporation Ltd (NSIC) by the Government of India, Ministry of Small Scale Industries. Under the loan, 75% of the rating fee payable by eligible Micro & Small Enterprises units is subsidized and the units are required to pay only the balance 25percent.
Credit Guarantee Fund loan
The Bank is a member lending institution of the Credit Guarantee Fund Trust for Small Industries and is extending coverage to all eligible loans under Credit guarantee Fund loan. Under this loan, One time guarantee fee is charged at;
1.50% for all loans.
Annual service fee of 0.75% of the credit facility.
Other loan for micro & Small Enterprises:
The bank is also implementing the Rural Employment Generation loan (KVIC-Margin Money loan), National Equity Fund loan and Credit linked Capital Subsidy loan, Technology Up gradation Fund loan.
Produce Marketing Loan
To Farmers to avoid distress sale of agricultural produce - Loans upto Rs.10.00 lakhs granted to farmers, repayable in 12 months against hypothecation/pledge of agricultural produce including Warehouse receipt.
Vijaya Kisan Card
The loan envisages meeting the entire crop production requirement of the Farmers including credit for post harvest /working capital requirements of allied Activities etc.
The loan is flexible and farmer friendly. Personal accident insurance cover is available for Kisan cardholders.
Vijaya Home Loan
Individuals can avail of housing loans for the construction/acquisition of house/flat as well as for repair/renovation of the existing house/flat.
Purpose The loan covers financing
For construction of a house building in the plot/site already purchased /owned
For purchase of a plot/site and a house building thereon.
For purchase of a new house/flat.
For purchase of old house /flat of age of 30 years and below.
For Repairs, Renovation (including cost of kitchen Cabinet, racks, wardrobes, electrical/solar power fittings) of existing house of age 50 years and below (HOME IMPROVEMENT LOAN).
For extending the existing house building HOME EXTENSION LOAN.
Short term Bridge Finance for the interim period between sales of the existing/ old house and purchase of a new house (HOME BRIDGE LOAN) –to the extent of 80% of market price of the existing house or 80% of cost of the new house to be purchased whichever is less but invariably against the Security of new house.
For taking over of the existing Housing loans availed from other Banks/Other lending Companies/Agencies
Eligibility: All individuals of 18 years and above age are eligible.
The applicant/beneficiary shall have sufficient income to repay the loan along with the interest within sanctioned period.
In case of salary income alone is considered for deciding the quantum of loan, such salaried persons should be in permanent service and not probationers: Persons nearing superannuation getting retirement benefits sufficient to cover the Loan applied can also be considered. Ex-Staff members family and relatives of staff members / Ex - Staff members who have independent income are also eligible.
Quantum of Loan : Minimum loan amount is Rs. 1.00 lakh
Maximum – Any amount - on need based as per the cost less stipulated margin subject to loan entitlement.
In case of Repairs/Renovation - maximum is Rs. 10 Lakhs. Housing loan of less than Rs. 1 lakhs can also be considered under Swarna Jayanti / Golden Hubble Loan in rural / Semi - Urban places.
Loan entitlement:
Salaried Person: Up to 60 month’s gross salary For Others : Up to 60 times of Monthly average income (Monthly average of past 24 months)
Margin : 20 percent of the cost in general, the cost shall include Land cost, Stamp duty, Registration charges, Fixtures like Ward Robes, Pelmets, Dressing Mirror, Kitchen cabinets / racks, Geysers etc.
Repayment : Upto 20 years including repayment holiday of 6 to 18 months: generally in equated Monthly Installments (EMI).
The maximum repayment period should not exceed 20 years or the borrower reaching 70 years of age whichever is earlier. Flexible / Variable EMI’s may also be fixed
In cases of availability of higher liquid collateral securities like FD’s, SV of LIC’s, NSC’s / KVP’s, EMI will be fixed by reducing total value of such securities from the total loan amount sanctioned. In case of considerable increase in salary/ income if any in future, the EMI may be re-calculated if the borrower so requests.
Security : The branches shall obtain the security of the site and building / flat constructed / to be constructed / to be purchased for which the finance is being extended, subject to satisfactory valuation and applicant’s clear marketable title / free from encumbrance the property.
Guarantor: The guarantee from spouse / major children to be insisted. If the property is in joint names, the co-owner should be taken as co-applicant. If the income of the spouse is reckoned for computation of loan amount and repayment, the spouse to join as co-applicant.
Incentives : As an incentive a personal loan (V Cash) equivalent to 12 months EMIs repayable in 36 months will be extended against the continuing security of House property already mortgaged to the Bank, in cases of track record of prompt repayment of 12 EMIs.
Inspection Charges (p.a)
For upto Rs. 10 lakhs ---> Rs. 500/-
for above Rs.10 lakhs ---> Rs. 1000/-
Education Loan
Eligibility : Student should be an Indian National and should have secured admission to the relevant Professional/ Technical courses in India or Abroad through Entrance Test/ Merit Based Selection process. However there is no age restriction for the applicant.
Courses Eligible
Studies in INDIA
Graduation courses : BA, B.Com., B.Sc., etc.
Post Graduation courses : Masters & Phd.
Professional Courses :Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer courses (BCA / MCA / BSc-CS, etc)
Animation /Cartooning/ multimedia/Graphic Designing, etc. where the course period should be one year and above & the courses conducted by reputed Institutions and the Institute to fulfill any of the following criteria:
NASSCOM rated/certified AICTE affiliated
Accredited to any UGC affiliated university in India Affiliated to reputed Foreign Universities
Computer certificate courses of reputed institutes accredited to Dept., of Electronics or institutes affiliated to University.
Courses like ICWA, CA, CFA etc.
Courses conducted by IIM, IIT, IISc, XLRI.NIFT etc.
Professional courses with ICFAI National College.
Coursed offered by M/s. Frankfinn Institute of Air Hostess.
Pilot Training Programme. (Government or recognized private institute approved by Director General of Civil Aviation, Government of India).
Courses offered in India by reputed foreign universities.
Evening courses of approved institutes.
Other courses leading to diploma/ degree etc, conducted by colleges/ universities approved by UGC/ Govt/ AICTE/ AIBMS/ ICMR etc.
Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on future prospects/ recognition by user institutions.
Studies Abroad
Graduation: For job oriented professional / technical courses offered by the reputed university.
Post graduation: MCA, MBA, MS, etc.
Courses conducted by CIMA-London, CPA in USA, etc.
Pilot Training Programme offered by recognized institutions abroad approved by competent authority in that country. Example in USA the Federal Aviation Administration, Government of USA.
The licences issued by such institutions should be convertible into corresponding Indian Licences in case the applicant desires to take up employment in India after completion of course/ training abroad, as per directives of Director General of Civil Aviation, Government of India.
Expenses Considered for Loan
Fee payable to college/ school/ hostel.
Examination/ Library/ Laboratory fee.
Purchase of books/ equipments/ instruments/ uniforms.
Caution deposit/ building fund/ refundable deposit supported by Institution bills/ receipts.
Travel expenses/ passage money for studies abroad.
Purchase of computers – essential for completion of the course.
Any other expense required to complete the course – like study tours, project work, thesis etc.
Issuance of DD favouring CET Cell
Fee payable to the Institution/hostel/examination fee, cost of books, travel expenses for studies abroad, purchase of computer, etc.
Loan Amount
Studies in India : Maximum Rs.10.00 lakhs
Studies abroad : Maximum Rs.20.00 lakhs
Rate of Interest : BPLR - 1.50 % p.a. Floating.
Simple interest basis during study & repayment holiday period (upto one year after completion of the course or six months after securing a job, whichever is earlier). Concession for Girl Students: Vijaya Bank has extended a 0.50 % interest concession to Girl Students for loans availed on or after 01.11.2008 and will be effective till 31.12.2010. This interest concession will be extended till closure of the loan.
Note: 1% interest concession is provided for loanees if the interest is serviced during the study period.
Margin : Upto Rs. 4.00 Lakhs : NIL, Above Rs.4.00 lakhs:Studies in India: 5 percent: Studies Abroad:15 percent
Special loan for Women
Assistance To Women In Non Farm Development
Assistance For Marketing Of Non Farm Products Of Rural Women
Processing Charges
Fair Practice Code on Lenders Liability
Assistance to Women in Non Farm Development (ARWIND)
The loan of Assistance to Rural Women in Non-Farm Development is being introduced mainly to support economic activities in non-Farm sector on a cluster/group basis by rural women. The loan has two components via
Credit component
Promotional component
Under component (1) a voluntary agency having minimum 3 years of proven track record in assisting women’s groups, women’s development corporation set up by the central/State governments, KVIC/KVIBs or any institutions under the KVIC/KVIB fold, any other registered institution including cooperatives, trusts and corporations set up by central/State governments for the purpose may evolve a loan to organise rural women’s groups for undertaking any productive activity in the non-farm sector and assist them in setting up their own units and /or provide such other backward/forward linkages including training as are considered necessary for improving viability of individual/group enterprises.
The loan assistance under the loan to the individuals, should not normally exceed Rs.50000/- per borrower or say Rs.10 lakhs for a group activity involving 20 rural women. However the actual loan amount will have to be need based and to be decided by the sponsoring agency or merits in consultation with the borrowers/financing bank depending on the nature of activity/unit to be set up.
Eligible Activities: All types of manufacturing, servicing, processing activities excluding those that are not socially desirable such as breweries producing intoxicants etc are eligible. However tiny and decentralised units with project cost not exceeding Rs.15 lakh will be preferred as satellite units and mother unit concept, in the interest of larger employment generation.
Security: As per Reserve Bank of India guidelines, for loans upto Rs.25000/- per borrower, no margin money or collateral security/third party guarantee will be insisted upon by the financing banks except hypothecation of assets created out of the loans.
Rate of Interest: The rate of interest chargeable to the beneficiaries /Banks will be those as may be specially by the Reserve Bank of India/NABARD from time to time.
Repayment Period: Subject to the cash flow of the loan, the loan repayment period will be between 3 to 10 years with a moratorium of 6 to 12 months.
Special conditions: As per the norms of the loan (HOCL40/94)
Assistance for Marketing of Non Farm Products of Rural Women (MAHIMA)
The loan envisages in providing loan and also assistance in grant to the Registered Voluntary Agencies (VA), Non-Governmental Organisations (NGOs) and other promotional organisations engaged in marketing the products of rural women.
The salient features of the above loan are as under:
Eligibility: The Vas\NGOs and other promotional organisations including co-operatives, federations of marketing organisations engaged in the business of marketing of women’s products are eligible to be covered under the loan. The organisations should have been working for at least 3 years with proven track record and experience in production /marketing of rural products and should satisfy the norms of the financing banks and NABARD prescribed from time to time.
Eligible activities: Organising rural women to enhance their bargaining strength vis-à-vis market forces.
Support for forward and backward linkage.
Provision of integrated marketing services including survey, purchase, sale, publicity, production cum sale, construction of sheds, stalls, counters, racks etc, design support, packaging branding/labelling, weighting and grading , testing, and other equipments etc.
Common marketing activities such as common storage facilities, freezers, labelling, packaging etc.
Security and Margins: As per the norms of the bank applicable from time to time.
Nabard refinance: Nabard will provide 100% refinance for the bank loans and maximum refinance is restricted to Rs.10 lakh only.
Quantum of grant / Assistance: The quantum of assistance by way of promotional grant would normally be restricted to Rs.5000/- per women entrepreneur to be covered by the agency concerned or up to 25% of the minimum sales turnover of Rs.10 lakh envisaged to be achieved within 3 years, whichever is lower. In other words would mean that the promotional grant assistance would normally be limited to Rs.2.50 lakh per agency, in case the agency is able to cover a minimum of 50 women individually or in groups, with a turnover of Rs.10 lakhs in order to make it operationally viable, at least, over a period of 3 years.
Security : Immovable property @ 25% margin and/or other securities like NSC, Kvp and Govt. securities, SV of policies to the extent of the Limit.
For limits and Rs.10 Lakhs - Collateral security of stock is taken (insured and inspected annually)
Short term funds:
These are required for meeting working capital needs. They are raised from sources can provide funds only for a short period quickly and at a reasons cost, they are usually required for a period upto one year.
The Long term funds:
These are required to a great extent for meeting the fixed capital needs of the business. They are required for a period exceeding one year. The sources from which a business meets its financial requirement can be classified as follows:
According to the period:
Long term sources: Namely, shares, debentures long term loans etc.,
Short term sources: Namely, public, deposits, loans from banks, advances from customers etc.,
According to Ownership:
Own capital: Namely, share capital, retained earning and surpluses etc.,
Borrowed capital: Such as debentures, public deposits and Loans.
According to the source of generation:
Internal sources: Namely, retained earnings depreciations funds etc.,
External sources: Namely, securities such shares, debentures etc.,
V Cash loan
V-CASH is a very convenient loan that one can avail of to meet short-term credit needs for individuals / working women / pensioners / Senior Citizens. Purpose For meeting unforeseen short time credit needs of the applicants / family members which includes medical expenses, marriage of applicant / family members, purchase of consumer durables, etc.,
Eligibility: Salaried persons satisfying the following conditions.
Individual aged between 21 years and 55 years.
He / She is a permanent employee of :
State / Central Government, the Defence / Police force or Autonomous Body.
A public sector / joint sector undertaking or a Corporation.
Reputed Public Limited Company.
An established education institution / aided college / school.
Any private establishment coming under the perview of Provident Fund / Gratuity Act.
He / She has a minimum service, so as to ensure that the entire liability is liquidated at least one year prior to his / her retirement.
The salary of the applicant should be credited to his / her account with the branch and he / she should give a letter in duplicate addressed to the employer undertaking not to revoke the Salary Mandate, without obtaining consent from the Bank. This letter should be sent by Registered Post by the branch to the employer and proof of dispatch should be held on record. OR
Where the employer has no system of remitting the salary of his staff members for the credit of their bank accounts, loans can be granted by taking an undertaking from the employer to deduct the monthly installments / interest from the salary and to remit the same to the Bank till they hear to the contrary from the Bank.
Pensioners drawing Service Pension (RPR, Family Pensions etc.) through our Bank aged not more than 70 years
Professionals & Self Employed Persons such as Doctors, Engineers, Architects, Chartered Accountants, Lawyers, Consultants, Agriculturists, Business-men etc. aged not more than 65 years having independent income.
Quantum of Loan :
For Salaried persons: Where the salary is being remitted by the employer for the credit of SB / C.A/c of the beneficiary for at least 6 months prior to granting the loan and the mandate on salary is served on the employer with due acknowledgement -- 12 months average net take home salary with a ceiling of Rs.2 lakhs subject to maintenance of 40% take home salary on the Gross salary after reducing the EMI of the proposed loan.
In case of Non-salaried persons -- twice the annual income as per latest Income Tax Assessment Orders / Copy of returns filed, subject to a maximum of Rs. 2 lakhs.
For Pensioners -- 12 months gross pension with a maximum pension of Rs.1.00 lakh.
Nature of Facility :
Term Loan - for a period repayable more than 24 months
Demand Loan – for a period repayable in 24 months or below.
Operative Limit – Cash Credit [Miscellaneous] or Demand Loan with a ceiling of Rs 2.00 lakhs in either case (to only non Salaried persons).
Repayment : Entire loan has to be repaid with interest in not more than 48 equated monthly installments.
Operative Limit : Limit may be fixed for 18 months renewable after review.
Agriculture loan
Agricultural Advances - Direct
Direct loans to Agriculture and allied activities include loans to individual farmers or SHGs / JLGs of Farmers for the following purposes:
Short term loans for raising crops
Short term loans to traditional Plantation and Horticulture.
Pledge loans upto Rs. 10.00lakhs repayable in 12 months irrespective of whether farmers have availed crop loans or not.
Working capital and term loans for financing production and investment requirements for agriculture and allied activities.
Loans to small and marginal farmers for purchase of land for agricultural purposes.
Loans to distressed farmers indebted to Non-Institutional lenders against appropriate collateral or group security.
Loans granted for Pre-Harvest or Post- harvest activities such as spraying, weeding, harvesting, grading, sorting, processing and transporting undertaken by individuals, SHGs and Co-operative in rural areas.
Short term loans for allied activities such as dairying, Fishery, Piggery, Poultry, Bee Keeping etc.
Purchase of agricultural implements and machinery – Iron ploughs, harrows, house, land-levellers, bund formers, hand tools, sprayers, dusters, hay-press, sugarcane crushers, thresher machines etc.
Purchase of farm Machinery - Tractors, trailers, power tillers, tractor accessories viz. Disc ploughs etc.
Purchase of trucks, mini-trucks, jeeps, pick up vans, bullock carts and other transport equipments etc., for agricultural purpose i.e., transportation of farm inputs / outputs.
Purchase of plough animals
Construction of shallow and deep tube wells, tanks, etc.
Constructing, deepening, clearing of surface wells, boring of wells, electrification of well, purchase of oil engines and installation of pumpsets, etc.
Purchase and installation of turbine pumps, construction of field chanelles .etc.
Lift irrigation projects
Installation of sprinkler / drip irrigation system (Mocro Irrigation)
Purchase of generator sets for agricultural purpose
Bunding of farm lands, levelling of land, terracing of dry paddy lands into wet irrigable paddy lands, development of farm drainage, reclamation of soil lands and prevention of salinisation, reclamation of ravine lands, purchase bulldozers etc.
Construction of Bullock sheds, implement sheds, tractor and tractor sheds, vehicle sheds, farm stores etc.
Construction and running of warehouses, godowns, silos and cold storages.
Production and processing of hybrid seeds of crops
Development of dairying and animal husbandry in all its aspects
Development of Fisheries
Development of poultry, piggery, beekeeping / sheep, goat etc
Development of sericulture
Bio gas plants.
Direct Loans to Agriculture & Allied activities to Corporate, Partnership Firms & Institutions
Loans up to Rs.1.00 crore comes under Direct Agriculture.
Loans in excess of Rs.1.00 crore, to the extend of only one third portion over and above Rs.1.00 crore also come under direct agriculture
Indirect loans to Agriculture :
Loans in excess of Rs.1.00 crore to Corporate, Partnership Firms & Institutions, two thirds portion over and above Rs.1.00 crore come under indirect agriculture
Loans to Foor & Agro based processing units with investment cost on plant and machinery upto Rs.10.00 crore undertaken by those other than individuals, SHGs and Co-Operatives in rural areas.
Credit for purchase & distribution of fertilizers, pesticides, seeds etc.
Credit upto Rs.40.00 lakhs for purchase & distribution of inputs for the allied activities such as cattle feed, poultry feed etc.
Finance for hire purchase loans for distribution of agricultural machinery and implements.
Loans for construction and running of storage facilities-warehouse, market yards, godowns, silos, and cold storages designed to store agriculture produce / products irrespective of the location.
Advances to custom service units managed by individuals institutions or organisations who maintain a fleet of tractors, bulldozers, well boring equipment, threshers, combines etc. and undertake work for farmers on contract basis.
Finance for setting up of Agri Clinic and Agri Business Centers
Loans to ferments through primary agricultural credit societies (PACS), Farmers Service Societies (FSS), and Large Sized Advise Multipurpose Societies (LAMPS)
Loans to Co-operative Societies of farmers for disposing off the produce of members.
Financing farmers indirectly through the Co-operative system.
Loans upto Rs.30.00 lakhs for dealers in Drip irrigation / Sprinkler Irrigation / Agricultural Machinery irrespective of the location.
Loans to NBFCs for on lending to individual ferments or their SHGs public JLGs.
Loans granted to NGOs / MFIs for on lending to individual farmmers of through SHGs / JLGs
Micro, Small and Medium Enterprises
Salient features of lending to Micro, Small & Medium Enterprises (MSMEs):
direct finance
The Bank is encouraging credit flow to Small and Medium & Micro Enterprises. This consist of both manufacturing and service sectors.
Micro (Manufacturing) Enterprises
The are Enterprises engaged in the manufacture, production ,processing, preservation of goods and whose investment cost in Plant & machinery does not exceed Rs.25.00 lakhs.
Small (Manufacturing) Enterprises:
Are Enterprises engaged in the manufacture, production, processing, preservation of goods and whose investment cost in Plant & machinery does not exceed Rs.5.00 Crores .Original Cost excluding Land and Building and the items specified by the Ministry of Small Scale Industries.
Micro (Service) Enterprises
Enterprises engaged in providing / rendering of services, whose investment in equipment does not exceed Rs. 10.00 lakhs.
Small (Service) Enterprises
Enterprises engaged in providing / rendering of services, whose investment in equipment does not exceed Rs. 2.00 Crores . Original Cost excluding Land and Building and furniture fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act.2006.
The Micro and Small Service Enterprises will include Small Road and Water Transport Operators, Small Business, Professional and Self-employed persons and all other service enterprises as per the above definition. Advances rendered to units in the KVI Sector will also come under Micro & Small Enterprises.
Medium (Manufacturing) Enterprises
Are Enterprises engaged in the manufacture, production , processing, preservation of goods and whose investment cost in Plant & machinery is above Rs.5.00 Crores & up to Rs.10.00 crore . Original Cost excluding Land and Building and the items specified by the Ministry of Small Scale Industries vide their notification no. SO.1722(E) dated 05.10.2006
Medium (Service) Enterprises
Enterprises engaged in providing / rendering of services, whose investment in equipment is above Rs.2.00 Crores and upto Rs.5.00 crore. Original Cost excluding Land and Building and furniture fittings and other items not directly related to the service rendered or as may be notified under the MSMED Act.2006.
Loans to Micro and Small Enterprises will come under Priority Sector, whereas loans to Medium Enterprises will come under Non-Priority Sector
INDIRECT FINANCE
Persons involved in assisting the decentralised sector in the supply of inputs to and marketing of outputs of artisans, village and cottage industries. Advances to co-operatives of producers in the decentralised sector viz. artisans, village and cottage industries. Loans granted by Banks to NBFCs for onlending to Small and Micro Enterprises.
Security: Loans upto Rs.5 lakh are collateral free.
Loans above Rs.5 lakh and upto Rs.25 lakh are also collateral free subject to good track record and financials of the unit.
Above Rs.25 lakh, collateral security and or third party guarantee.
Rating of MSME units:
Bank is adopting a multidimensional risk-rating model for SME advances to rationalise the cost of loans to MSME sector. There are three risk rating models adopted at present.
Model for exposures ranging from Rs.2 lacs to below Rs.1 crore.
Model for exposures ranging from Rs.1 crore to below Rs.3 crore.
Model with segmented approach for exposure of Rs.3 crore and above.
Bank also encourages rating of MSME units by approved rating agencies. The bank has signed a Memorandum of Understanding with Small and Medium Rating Agency (SMERA), CRISIL & ICRA to enable independent third-party assessment of the MSME units.
The rating fee payable to various agencies for getting the MSME units rated is based on the size of the enterprise. SMERA, CRISIL, & ICRA have been empanelled as agencies eligible for subsidy towards the rating fee charged from Micro & Small Enterprises units operated through the National Small Industries Corporation Ltd (NSIC) by the Government of India, Ministry of Small Scale Industries. Under the loan, 75% of the rating fee payable by eligible Micro & Small Enterprises units is subsidized and the units are required to pay only the balance 25percent.
Credit Guarantee Fund loan
The Bank is a member lending institution of the Credit Guarantee Fund Trust for Small Industries and is extending coverage to all eligible loans under Credit guarantee Fund loan. Under this loan, One time guarantee fee is charged at;
1.50% for all loans.
Annual service fee of 0.75% of the credit facility.
Other loan for micro & Small Enterprises:
The bank is also implementing the Rural Employment Generation loan (KVIC-Margin Money loan), National Equity Fund loan and Credit linked Capital Subsidy loan, Technology Up gradation Fund loan.
Produce Marketing Loan
To Farmers to avoid distress sale of agricultural produce - Loans upto Rs.10.00 lakhs granted to farmers, repayable in 12 months against hypothecation/pledge of agricultural produce including Warehouse receipt.
Vijaya Kisan Card
The loan envisages meeting the entire crop production requirement of the Farmers including credit for post harvest /working capital requirements of allied Activities etc.
The loan is flexible and farmer friendly. Personal accident insurance cover is available for Kisan cardholders.
Vijaya Home Loan
Individuals can avail of housing loans for the construction/acquisition of house/flat as well as for repair/renovation of the existing house/flat.
Purpose The loan covers financing
For construction of a house building in the plot/site already purchased /owned
For purchase of a plot/site and a house building thereon.
For purchase of a new house/flat.
For purchase of old house /flat of age of 30 years and below.
For Repairs, Renovation (including cost of kitchen Cabinet, racks, wardrobes, electrical/solar power fittings) of existing house of age 50 years and below (HOME IMPROVEMENT LOAN).
For extending the existing house building HOME EXTENSION LOAN.
Short term Bridge Finance for the interim period between sales of the existing/ old house and purchase of a new house (HOME BRIDGE LOAN) –to the extent of 80% of market price of the existing house or 80% of cost of the new house to be purchased whichever is less but invariably against the Security of new house.
For taking over of the existing Housing loans availed from other Banks/Other lending Companies/Agencies
Eligibility: All individuals of 18 years and above age are eligible.
The applicant/beneficiary shall have sufficient income to repay the loan along with the interest within sanctioned period.
In case of salary income alone is considered for deciding the quantum of loan, such salaried persons should be in permanent service and not probationers: Persons nearing superannuation getting retirement benefits sufficient to cover the Loan applied can also be considered. Ex-Staff members family and relatives of staff members / Ex - Staff members who have independent income are also eligible.
Quantum of Loan : Minimum loan amount is Rs. 1.00 lakh
Maximum – Any amount - on need based as per the cost less stipulated margin subject to loan entitlement.
In case of Repairs/Renovation - maximum is Rs. 10 Lakhs. Housing loan of less than Rs. 1 lakhs can also be considered under Swarna Jayanti / Golden Hubble Loan in rural / Semi - Urban places.
Loan entitlement:
Salaried Person: Up to 60 month’s gross salary For Others : Up to 60 times of Monthly average income (Monthly average of past 24 months)
Margin : 20 percent of the cost in general, the cost shall include Land cost, Stamp duty, Registration charges, Fixtures like Ward Robes, Pelmets, Dressing Mirror, Kitchen cabinets / racks, Geysers etc.
Repayment : Upto 20 years including repayment holiday of 6 to 18 months: generally in equated Monthly Installments (EMI).
The maximum repayment period should not exceed 20 years or the borrower reaching 70 years of age whichever is earlier. Flexible / Variable EMI’s may also be fixed
In cases of availability of higher liquid collateral securities like FD’s, SV of LIC’s, NSC’s / KVP’s, EMI will be fixed by reducing total value of such securities from the total loan amount sanctioned. In case of considerable increase in salary/ income if any in future, the EMI may be re-calculated if the borrower so requests.
Security : The branches shall obtain the security of the site and building / flat constructed / to be constructed / to be purchased for which the finance is being extended, subject to satisfactory valuation and applicant’s clear marketable title / free from encumbrance the property.
Guarantor: The guarantee from spouse / major children to be insisted. If the property is in joint names, the co-owner should be taken as co-applicant. If the income of the spouse is reckoned for computation of loan amount and repayment, the spouse to join as co-applicant.
Incentives : As an incentive a personal loan (V Cash) equivalent to 12 months EMIs repayable in 36 months will be extended against the continuing security of House property already mortgaged to the Bank, in cases of track record of prompt repayment of 12 EMIs.
Inspection Charges (p.a)
For upto Rs. 10 lakhs ---> Rs. 500/-
for above Rs.10 lakhs ---> Rs. 1000/-
Education Loan
Eligibility : Student should be an Indian National and should have secured admission to the relevant Professional/ Technical courses in India or Abroad through Entrance Test/ Merit Based Selection process. However there is no age restriction for the applicant.
Courses Eligible
Studies in INDIA
Graduation courses : BA, B.Com., B.Sc., etc.
Post Graduation courses : Masters & Phd.
Professional Courses :Engineering, Medical, Agriculture, Veterinary, Law, Dental, Management, Computer courses (BCA / MCA / BSc-CS, etc)
Animation /Cartooning/ multimedia/Graphic Designing, etc. where the course period should be one year and above & the courses conducted by reputed Institutions and the Institute to fulfill any of the following criteria:
NASSCOM rated/certified AICTE affiliated
Accredited to any UGC affiliated university in India Affiliated to reputed Foreign Universities
Computer certificate courses of reputed institutes accredited to Dept., of Electronics or institutes affiliated to University.
Courses like ICWA, CA, CFA etc.
Courses conducted by IIM, IIT, IISc, XLRI.NIFT etc.
Professional courses with ICFAI National College.
Coursed offered by M/s. Frankfinn Institute of Air Hostess.
Pilot Training Programme. (Government or recognized private institute approved by Director General of Civil Aviation, Government of India).
Courses offered in India by reputed foreign universities.
Evening courses of approved institutes.
Other courses leading to diploma/ degree etc, conducted by colleges/ universities approved by UGC/ Govt/ AICTE/ AIBMS/ ICMR etc.
Courses offered by National Institutes and other reputed private institutions. Banks may have the system of appraising other institution courses depending on future prospects/ recognition by user institutions.
Studies Abroad
Graduation: For job oriented professional / technical courses offered by the reputed university.
Post graduation: MCA, MBA, MS, etc.
Courses conducted by CIMA-London, CPA in USA, etc.
Pilot Training Programme offered by recognized institutions abroad approved by competent authority in that country. Example in USA the Federal Aviation Administration, Government of USA.
The licences issued by such institutions should be convertible into corresponding Indian Licences in case the applicant desires to take up employment in India after completion of course/ training abroad, as per directives of Director General of Civil Aviation, Government of India.
Expenses Considered for Loan
Fee payable to college/ school/ hostel.
Examination/ Library/ Laboratory fee.
Purchase of books/ equipments/ instruments/ uniforms.
Caution deposit/ building fund/ refundable deposit supported by Institution bills/ receipts.
Travel expenses/ passage money for studies abroad.
Purchase of computers – essential for completion of the course.
Any other expense required to complete the course – like study tours, project work, thesis etc.
Issuance of DD favouring CET Cell
Fee payable to the Institution/hostel/examination fee, cost of books, travel expenses for studies abroad, purchase of computer, etc.
Loan Amount
Studies in India : Maximum Rs.10.00 lakhs
Studies abroad : Maximum Rs.20.00 lakhs
Rate of Interest : BPLR - 1.50 % p.a. Floating.
Simple interest basis during study & repayment holiday period (upto one year after completion of the course or six months after securing a job, whichever is earlier). Concession for Girl Students: Vijaya Bank has extended a 0.50 % interest concession to Girl Students for loans availed on or after 01.11.2008 and will be effective till 31.12.2010. This interest concession will be extended till closure of the loan.
Note: 1% interest concession is provided for loanees if the interest is serviced during the study period.
Margin : Upto Rs. 4.00 Lakhs : NIL, Above Rs.4.00 lakhs:Studies in India: 5 percent: Studies Abroad:15 percent
Special loan for Women
Assistance To Women In Non Farm Development
Assistance For Marketing Of Non Farm Products Of Rural Women
Processing Charges
Fair Practice Code on Lenders Liability
Assistance to Women in Non Farm Development (ARWIND)
The loan of Assistance to Rural Women in Non-Farm Development is being introduced mainly to support economic activities in non-Farm sector on a cluster/group basis by rural women. The loan has two components via
Credit component
Promotional component
Under component (1) a voluntary agency having minimum 3 years of proven track record in assisting women’s groups, women’s development corporation set up by the central/State governments, KVIC/KVIBs or any institutions under the KVIC/KVIB fold, any other registered institution including cooperatives, trusts and corporations set up by central/State governments for the purpose may evolve a loan to organise rural women’s groups for undertaking any productive activity in the non-farm sector and assist them in setting up their own units and /or provide such other backward/forward linkages including training as are considered necessary for improving viability of individual/group enterprises.
The loan assistance under the loan to the individuals, should not normally exceed Rs.50000/- per borrower or say Rs.10 lakhs for a group activity involving 20 rural women. However the actual loan amount will have to be need based and to be decided by the sponsoring agency or merits in consultation with the borrowers/financing bank depending on the nature of activity/unit to be set up.
Eligible Activities: All types of manufacturing, servicing, processing activities excluding those that are not socially desirable such as breweries producing intoxicants etc are eligible. However tiny and decentralised units with project cost not exceeding Rs.15 lakh will be preferred as satellite units and mother unit concept, in the interest of larger employment generation.
Security: As per Reserve Bank of India guidelines, for loans upto Rs.25000/- per borrower, no margin money or collateral security/third party guarantee will be insisted upon by the financing banks except hypothecation of assets created out of the loans.
Rate of Interest: The rate of interest chargeable to the beneficiaries /Banks will be those as may be specially by the Reserve Bank of India/NABARD from time to time.
Repayment Period: Subject to the cash flow of the loan, the loan repayment period will be between 3 to 10 years with a moratorium of 6 to 12 months.
Special conditions: As per the norms of the loan (HOCL40/94)
Assistance for Marketing of Non Farm Products of Rural Women (MAHIMA)
The loan envisages in providing loan and also assistance in grant to the Registered Voluntary Agencies (VA), Non-Governmental Organisations (NGOs) and other promotional organisations engaged in marketing the products of rural women.
The salient features of the above loan are as under:
Eligibility: The Vas\NGOs and other promotional organisations including co-operatives, federations of marketing organisations engaged in the business of marketing of women’s products are eligible to be covered under the loan. The organisations should have been working for at least 3 years with proven track record and experience in production /marketing of rural products and should satisfy the norms of the financing banks and NABARD prescribed from time to time.
Eligible activities: Organising rural women to enhance their bargaining strength vis-à-vis market forces.
Support for forward and backward linkage.
Provision of integrated marketing services including survey, purchase, sale, publicity, production cum sale, construction of sheds, stalls, counters, racks etc, design support, packaging branding/labelling, weighting and grading , testing, and other equipments etc.
Common marketing activities such as common storage facilities, freezers, labelling, packaging etc.
Security and Margins: As per the norms of the bank applicable from time to time.
Nabard refinance: Nabard will provide 100% refinance for the bank loans and maximum refinance is restricted to Rs.10 lakh only.
Quantum of grant / Assistance: The quantum of assistance by way of promotional grant would normally be restricted to Rs.5000/- per women entrepreneur to be covered by the agency concerned or up to 25% of the minimum sales turnover of Rs.10 lakh envisaged to be achieved within 3 years, whichever is lower. In other words would mean that the promotional grant assistance would normally be limited to Rs.2.50 lakh per agency, in case the agency is able to cover a minimum of 50 women individually or in groups, with a turnover of Rs.10 lakhs in order to make it operationally viable, at least, over a period of 3 years.
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