BCC:BR:'108/430 0'lsr Oclober, 2016

CIRCULAR TO ALt BRANCHES AND OFFICES IN INDIA

Sub File - Adv 2

ISSUED BY RETAIL BANKING DEPARTMENT

Deor Sir,

Re: Moster Circulor on 'Borodo Home Loon,,

We ore ottoching the Mosier Circulor on ,Borodo Home Loon' with oll the
updoted feotures of o I the producis under ,Borodo Home Loon, ond related
products:

Borodq Home Loon (Residenl Indion/N Rls/ptOs/OCts)

o Borodo Home Advontoge
o Borodq CRE Home Loon
o Borodo Pre opproved Home Loon
Borodo Home lmprovement loon.
Bqrodo Additionol Assured Advance (AAA).
Golden Jubilee Rurol Housing Finqnce Scheme (cJRHF)
Prqdhqn Monlri Awos Yojono (pMAy)

ond
o Borodo Home Loon Suroksho personol loon

This Moster Circu or consolidotes ol1 the instructions in respect of ,,Borodo

Home Loon Scheme" issued upto 30.09.20'16 by Retoil Bonking Deportment,
BCC from time to tlme.

We ore sure ihis updcled moster circulor wjll help the broncbes io updole
lnerr oworeness ol Horne Loon products ond fccilitote them os o reference
motericl, since ihey will be oble 1o find comp eie set of guidelines pertoining
to Home Loon producls of one p oce.

Yours f oif hfully

(AsYok Anejci
Genersl Mqnoger
Heod - Morfgoges & Of her Refoil Assefs)

T3t{I s'Icft? *.{,

S-26, +-Rif-6, srcr graf ?nq+tr, s|Er(E),i..|-{ - loo osr,,nrc.
Baroda Corporate Centre, C.26, G-Block, Bandra Kurta Complex, Bandra (E), Mumbai- 05i, India.
4OO
Src/phone:91 22 66985000,. fw / fax : g1 22 2652 3S't4,. iq / Web : wwwbankofbaroda.com
 Master Circular
on
Baroda Home Loan
[Updated upto 30.09.2016]

Mortgages & Other Retail Assets

Bank of Baroda
Baroda Corporate Centre
Mumbai

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 INDEX

Sr.No TOPIC Page

. No.
PRODUCTS UNDER BARODA HOME LOAN

I Baroda Home Loan (Resident Indians/ NRIs/PIOs/OCIs) 38

II Baroda Home Loan Advantage 46
III Baroda CRE Home Loan 49
IV Baroda Pre Approved Home Loan 53
V Baroda Home Improvement Loan 55
VI Baroda Additional Assured Advance (AAA) 59
VII Golden Jubilee Rural Housing Finance 68
VIII Pradhan Mantri Awas Yojana (PMAY) 68

PRODUCT FEATURES
I Baroda Home Loan (Resident Indians/ NRIs/PIOs/OCIs) 6
1. Target group 6
2. Eligibility of borrowers 6
3. Age 7
4. Purpose 8
5. Area of Operation 15
6. Maximum Loan Amount (Ticket Size) 15
7. Income Criteria (Income Multiplier) 16
8. Repayment capacity (FOIR) 18
9. Margin Norms / Loan to Value (LTV) Ratio 19
10. Repayment Period 19
11. Moratorium Period 19
12. Repayment 20
13. Rate of Interest (Pricing) 22
14. Bureau Score Validations 24
15. Submission of Loan application and Preliminary Scrutiny 26
Mandatory feeding of Tracker ID in LAPS 27
16. Security 29
17. Risk Rating 35
18. Documentation 35
19. Equated Monthly Installment (EMI) Plan 37
20. Resetting of EMIs/ Extension of Repayment period on revision of interest rate 38
21. Home Loans at Fixed Rate Option- Application of re-set clause 38
22. Conversion from „Fixed to Floating Rate‟ 40
23. Rate of Interest based on tenure of the loan 40
24. Disbursement of Loan 40
25. Unified Processing Charges 41
26. Property Insurance & Personal Accidental Insurance 42
27. Life Insurance cover to Home Loan Borrowers 43
28. Prepayment Charges 43
29. Inspection of property – Pre sanction & post sanction 43
30. Home Loan to Staff members availing under Public Scheme 44
31. Discretionary lending powers / Sanctioning Authority 44

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32. Free Credit Card to Home Loan borrowers 45
33. Additional Assured Advance facility (AAA) 45
34. Withdrawal of concession to Group Home Loan proposals & employees of preferred
46
organizations
35. Powers of Deviations & charges for deviations 46
36. Approval of Builder/Developer/Promoter & Projects 46
37. Implementation of the orders of Delhi High Court 47
38. Payment of incentive to staff members 47
39. Payment of service charges to Approved Builders 47
40. Priority Sector Classification 48
41. Home Loan Suraksha Personal Loan 48
42. Empanelment of MCs & HLCs 49
43. Empanelment of DSAs 49

II Baroda Home Loan Advantage - Guidelines 50

III Baroda CRE Home Loan - Guidelines 52
IV Baroda Pre Approved Home Loan - Guidelines 56
V Baroda Home Improvement Loan – Product Profile 58
VI Baroda Additional Assured Advance (AAA) – Product Profile 62
VII Home Loan to Staff under Public Scheme –Product Profile 63
VIII Golden Jubilee Rural Housing Finance (GJRHF) – Product Profile 66
IX Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS) 67
X Baroda Home Loan Suraksha Personal Loan - Guidelines 72
XI Pradhan Mantri Awas Yojana (PMAY) 75

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 ANNEXURES
1. Group Credit Life Insurance for Home Loan Borrowers 80
2. Personal Accident Insurance & Property Insurance (Revised schemes) 89
3. Baroda Home Loan Suraksha Bima Yojna 100
4. KYC Norms & Preventive Vigilance 107
5. Rating Model 110
6. Online Home Loan Application 113
7. (a) Approval of Builders and their Housing Projects 115
(b) Parameters for approval of builders and their projects 119
(c) Information to be obtained from builders for approval of projects 120
(d) Powers to approve deviation to accept „unregistered agreement to sell‟ in
121
approved/unapproved housing projects
(e) Upfront disbursal of Housing Loans – RBI guidelines 123
(f) Disbursement of Home Loans on the basis of „agreement to sell‟. 125
8. Issuance of Free Credit Card to Home Loan Borrowers 126
9. Powers for Deviations & Deviation charges 128
10. Documents to be obtained from Customers 134
12. Finacle vis-a-vis Ascrom Codes 138
13. Selling Points on Home Loans 138
14. Payment of Incentive to staff members 139
15. Payment of Service Charges to Builders 141
16. Implementation of orders of Delhi High Court 143
17. Application Form- Home Loan to Individuals (Resident Indian) 144
18. Application Form – Home Loan to NRIs/PIOs/OCIs 150
19. Pre sanction Inspection Report 154
20. Post Sanction Inspection Report 156
21. (a) Format of letter to Advocate for legal opinion 157
(b) Format of Title Opinion Report to be submitted by Advocate 160
22. Format for Power of Attorney 163
23. Format of Letter to be obtained from principal for execution of POA 166
24. Format of Special POA in case of take over loans 167
25. Format- Details of payment of incentive to staff for Home Loans 169
26. Format- Details of payment of incentive to Builders 170
27. CRGS scheme – Format for Claims 171
28. Undertaking from borrower for Home loan for purchase of plot 174
29. Undertaking - Purchase of plot- for further extension of period 175
30. Home Loan Advantage - Undertaking 176
31. Home Loan Advantage – Job Card 177
32. Pre Approved Home Loan – Draft In principle sanction letter 182
33. (a) Online Application for Home Loan - Screen shots of Navigations 184
(b) Online Application for Home Loan - Sample In principle sanction letter 188
34. Format of Tripartite Agreement 190
35. Staff Incentive for Home Loan Leads - Lead Submission form 196
36. PMAY – Scheme Enclosures 199

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 BARODA HOME LOAN
INTRODUCTION:

Retail continues to be the thrust area for credit growth in Banking Sector and out of that
Home Loan plays a vital role in retail credit growth. Home Loan is inherently different from
any other retail loan. It contributes more than 56% of total retail loans.

 With an objective to benchmark Bank‟s Home Loan product offerings with key
players in the market across leading public sector banks and private sector banks,
Bank has reviewed and redesigned Home Loan products w.e.f. 01.04.2016.
Accordingly, separate Scheme for Home Loan to NRIs/PIOs/OCIs and Home Loan to
Staff under Public scheme has been discontinued and realigned the guidelines with
the single scheme of „Baroda Home Loan‟.
 Further, Bank has introduced risk based pricing linked to Bureau score of the
applicant/s for Home Loans w.e.f. 01.04.2016.
 Presently Bank has -3- additional variants under Baroda Home Loan called, Baroda
Home Loan Advantage, Baroda CRE Home Loan and Baroda Pre Approved Home
Loan.
 Baroda Home Improvement Loan and Baroda Additional Assured Advance AAA) are
sub products under Home Loan portfolio.
 Golden Jubilee Rural Housing Finance Scheme (GJRHF) & Pradhan Mantri Awas
Yojana (PMAY) have been implemented as per Govt. of India guidelines.
 Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS) notified by
Govt. of India, have been implemented for providing guarantee in respect of Housing
Loans to EWS/LIG households in urban areas.
 Bank has launched a new Personal Loan scheme exclusively for Home Loan
borrowers - Baroda Home Loan Suraksha Personal Loan for funding life insurance
premium of Group Credit Life Insurance cover for home loan. The scheme is
classified under „Personal Loan segment‟. However, since the scheme is exclusively
for Home Loan borrowers, the features of the scheme are provided here under the
„Home Loan section‟.

Products covered under „Baroda Home Loan‟:

o Baroda Home Loan (Resident Indian/ NRI/PIO/OCI)

o Baroda Home Advantage
o Baroda CRE Home Loan
o Baroda Pre approved Home Loan
o Baroda Home Improvement Loan.
o Baroda Additional Assured Advance (AAA).
o Golden Jubilee Rural Housing Finance Scheme (GJRHF)
o Pradhan Mantri Awas Yojana (PMAY)

The detailed features of the Baroda Home Loan products are mentioned in the following
sections.

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 BARODA HOME LOAN:

1. Target Group:

 Resident Indians
 Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs)
holding foreign passport or Overseas Citizens of India (OCI).
 Staff members (availing under Public scheme)

2. Eligibility of Borrower/s:

 Individuals singly or jointly.

 HUFs are not eligible.

Resident Indian:

Applicant / co-applicant/s (whose income are considered for eligibility) should be

employed / engaged in business / profession for a minimum period of -1- year (for
salaried) and/or -2- years (for non-salaried).

(Break in service, if any, can be allowed up to a maximum period of 3 months)

NRI/PIO/OCI:

a) Applicant/ co-applicant/s (whose income are considered for eligibility) should be

having a regular job abroad in a reputed Indian / foreign company, organization or
government department holding a valid job contract / work permit for the minimum
past -2- years.

OR

Should be employed / self-employed or having a business unit and staying abroad at

least for -2- years.

b) Applicant / co-applicant/s (whose income is considered for eligibility) should have

minimum gross annual income equivalent to Rs.5.00 Lacs per annum.
[If the applicant / co applicant/s, whose income is considering for eligibility includes
NRI, minimum Gross Annual Income of Rs.5 Lacs (income of applicant / co-applicant
together) can be considered for this criteria.

 Person of Indian Origin (PIO) is specified as under:

A citizen of any country other than Bangladesh / Pakistan / Sri Lanka / Afghanistan /
China / Iran / Nepal & Bhutan if –
a. he at any time held Indian passport or
b. he or either of his parents or any of his grandparents was a citizen of India by virtue
of the constitution of India of the Citizenship Act 1955, or
c. The person is a spouse of an Indian citizen or a person referred to in sub-clause (a)
or (b) above.

 Overseas Citizens of India (OCI) is specified as under:

a. A person registered as Overseas Citizen of India (OCI) under section 7 A of the
Citizenship Act, 1955.

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 b. As per the guidelines, an Overseas Citizens of India (OCI) has to be necessarily a
Person of India Origin (PIO).
c. A foreign national, who was eligible to become citizen of India on 26.01.1950 or was
a citizen of India on or at any time after 26.01.1950 or belonged to a territory that
became part of India after 15.08.1947 and his / her children and grand children,
provided his/ her country of citizenship allows dual citizenship in some form or other
under the local laws, is eligible for registration as Overseas Citizen of India (OCI).
Minor children of such person are also eligible for OCI. However, if the applicant had
ever been a citizen of Pakistan or Bangladesh, he / she will not be eligible for OCI.

Co-Applicants:

The close relatives of the applicant can be added as a co-applicant for higher eligibility.

If the applicant wants to add any person who is not a close relative as a co-applicant,
same can be considered only if he/ she are the joint owner of property. In such cases,
name of any other close relative, who is not a joint owner of the property, should not be
added as co-applicant for considering higher eligibility.

In case, if the income of the owner/co-owner/s of property, is not considered for

eligibility, upper age criteria/ employment criteria will not be applicable for these
applicant/co-applicant/s.

List of Close Relatives:

Spouse, Father, Mother (including Step Mother), Son (including Step Son), Son‟s wife,
Daughter (Including Step Daughter), Daughter‟s husband, Brother/sister (Including step
brother/sister), Brother‟s wife, sister (including step sister) of spouse, Sister‟s husband,
Brother (including step brother) of spouse.

3. Age:

 Minimum age: Minimum age of the applicant must be 21 years. However, the
minimum age of co-applicant/s can be 18 years.

 Maximum age:

Salaried Persons:

Age of the applicant/co-applicant/s (whose income are considering for eligibility) plus
repayment period should not be beyond retirement age.

However,
a) Maximum age can be considered upto 70 years. i.e., the age by which the Loan
should be fully repaid, subject to availability of sufficient regular and continuous source
of income for servicing the loan, provided:

(i) Son/ Daughter/ Spouse who is a legal heir and preferably below 50 years of age,
with sufficient income for servicing the loan repayment joins as Co-
Applicant/Guarantor.
(OR)

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 (ii) If applicant pledges FDRs / NSCs / Govt. Security etc. of adequate value to ensure
continuity of income for repayment of loan installment with interest if sanctioning
authority is satisfied about the same.

b) Maximum age can be considered up to 70 years, also in case of salaried persons

covered under pension scheme, subject to the condition that 40% of the pension is
sufficient to pay EMI. In case EMI exceeds 40% of the pension, the borrower to
deposit adequate amount in the loan account so as to reduce the outstanding amount
of loan to the extent it can be serviced by 40% of the pension.

Others (Self-employed/professionals/agriculturists & NRIs etc.):

Age of the applicant/co-applicant/s (whose income are considering for eligibility) plus
repayment period should not exceed -65- years.

However,
Maximum age can be considered upto 70 years. i.e., the age by which the Loan should
be fully repaid, subject to availability of sufficient regular and continuous source of
income for servicing the loan, provided:
(i) Son / Daughter / Spouse who is a legal heir and preferably below 50 years of age,
with sufficient income for servicing the loan repayment joins as Co-Applicant
/Guarantor.
(OR)
(ii) If applicant pledges FDRs / NSCs / Govt. Security etc. of adequate value to ensure
continuity of income for repayment of loan installment with interest if sanctioning
authority is satisfied about the same.

4. Purpose:

i. Construction / Purchase of Residential House/ Flat:

 For construction of new dwelling unit or purchasing of new Residential House/ Flat.
 For purchase of old House/ Flat (not more than -25- years old).
 For House/ Flat which is older than 20 years but not more than 25 years, Branch to
ascertain structural soundness of the building by obtaining an approved engineer‟s
certificate, certifying the structural soundness as well as residual life of the building
which should be at least -5- years more than the repayment period.
 For House/ Flat which are older than 25 years, Regional Head may authorize such
cases on selective basis, subject to, ascertaining structural soundness of the building
by obtaining an approved engineer‟s certificate, certifying the structural soundness as
well as residual life of the building which should be at least -5- years more than the
repayment period.

ii. Purchase of Residential Plot of land AND Construction of House:

 For purchase of Residential Plot of land and Construction of house therein.

 The total project cost will include cost of plot of land and cost of construction together.
 A reasonable part of the total Home Loan eligibility can be sanctioned for purchase of
plot (proportionate to the overall cost), keeping appropriate margin for purchase of
plot of land as well as construction of house.

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  Construction Plan, Estimate and all other relevant documents related to construction
should be available at the time of sanction. (Construction plan to get approved
subsequently after purchase of plot and before disbursement of funds for construction)
 Construction of House should be completed within -3- years or up to the period
allowed by Development Authority, whichever is earlier, from the date of purchase of
plot, without attracting to Commercial ROI.

The following conditions will also be applicable:

 In case the borrower fails to complete the construction of House within a period of -3-
years from the availment of Home Loan, Branch to charge commercial rate of interest
[1 year MCLR+ Strategic Premium plus maximum band or Base Rate plus maximum
band (if loan is under base rate system), as the case may be, declared by the Bank for
commercial purpose prevailing at the time of default] from the date of first
disbursement.

In case the borrower pre-closes the Home Loan account without starting the
construction within a period of -3- years from the availment of Home Loan, Branch to
charge commercial ROI [1 year MCLR+ Strategic Premium plus maximum band or Base
Rate plus maximum band (if loan is under base rate system), as the case may be,
declared by the Bank for commercial purpose prevailing at the time of default] from
the date of first disbursement.

Branch should obtain a suitable undertaking from the borrower to this effect at the
time sanction- as per Annexure -28

 In case the borrower could not construct the House within the stipulated period due to
circumstances beyond his/her control or genuine difficulties, Zonal Authority is
authorised to waive / refund the commercial ROI on case to case basis and strictly on
merits. A suitable undertaking to be obtained from the borrower to construct the
House within further period of maximum -2- years without attracting commercial ROI
(as per Annexure -29)

 In case the borrower fails to construct the House within the further stipulated period of
maximum -2- years, Branch to charge commercial rate of interest [1 year MCLR+
Strategic Premium plus maximum band or Base Rate plus maximum band (if loan is
under base rate system), as the case may be, declared by the Bank for commercial
purpose prevailing at the time of default] from the date of first disbursement.

 Since the compliance of the undertaking rests with the borrower, Branches should
ensure that suitable covenants have been incorporated in the loan sanction letter, to
enable the Bank to charge higher rate of interest, abinitio, in the event of non-
compliance by the borrower with his undertaking.

iii. Loan exclusively for Purchase of Residential Plot of Land only:

In case, the Applicant is availing Home Loan exclusively for purchase of residential plot of
land only, same can be considered subject to:

(a) The plot is allotted by a Development Authority/ Govt. Authority for construction of
House / Flat.

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 (b) The Applicant has availed Loan for Earnest Money Deposit from our Bank for applying
for purchase of plot as per the scheme of the Development Authority/ Govt. Authority.

(c) A House / Flat will be constructed (completed) thereon within -3 - years or upto the
period allowed by Development Authority, whichever is earlier, from the date of
purchase of Plot.

(d) In case the Borrower fails to complete the construction of the house within a period of
-3- years from the availment of Home Loan, commercial rate of interest (1 year
MCLR+ Strategic Premium plus maximum band as declared by the Bank for
commercial purpose prevailing at the time of default) will be charged from the date of
first disbursement.

(e) In case the borrower pre-closes the Home Loan account without completing the
construction within a period of -3- years from the availment of Home Loan, commercial
ROI (1 year MCLR+ Strategic Premium plus maximum band for commercial purpose
prevailing at the time of default) will be charged from the date of first disbursement.

(f) Branch should obtain a suitable undertaking from the Borrower to this effect at the
time of sanction. (As per Annexure-28)

(g) Deviation powers in this regard are delegated to Zonal Authority as in Point No. (ii)
above.

iv. Person who has been provided accommodation by his / her employer is also eligible for
Home Loan, even though he / she is not in a position to occupy the same in the near
future and proposes to let out on rental basis.

v. Takeover of Home Loans from other Banks/ HFCs/NBFCs/ FIs etc:

Good Home Loan accounts from other Banks / HFCs / NBFCs/ FIs etc. can be taken over,
observing our Bank‟s Home Loan guidelines in respect of margin, income criteria (income
multiplier), repayment capacity (FOIR), margin / LTV norms, CIBIL score validations etc.

After considering income, repayment capacity and age of applicant, fresh repayment
period & EMI may be fixed within our Bank‟s Home Loan guidelines.

Additional funds for extension/additional construction under Home Loan and/or Home
Improvement Loan and/or Additional Assured Advance (AAA) may also be considered, as
per norms, along with takeover of Home Loans.

Detailed Take over guidelines for Home Loans are given as under:

 In case of takeover of Home Loan accounts from other Banks no prior clearance is
required from Regional / Zonal Head.

 However, branches need to observe the following safeguards in respect of such

takeover of accounts:

o Accounts should be taken over in consideration / possibility of larger business

interests / valuable connections.

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o There should not have been any reschedulement / restructuring in the account
during last two years.

o Accounts with the existing lenders should be under the category of Standard Assets.

o While taking over Home Loans from other Banks / HFCs / NBFCs/ FIs etc, branches
should ensure that a minimum stipulated margin and LTV Ratio as the scheme on the
value of house property is available.

o The amount of Loan may include the outstanding balance, foreclosure fee payable to
existing Bank, if any and stamp duty for creation of equitable mortgage in our Bank‟s
favour subject to margin, income and repaying capacity criteria, Loan to Value (LTV)
ratio etc.

o Repayment period and EMI may be fixed, keeping in view our Bank‟s guidelines in
respect of income and repaying capacity of the applicant, LTV/margin norms and
considering the age of borrower/co-borrower.

o Fresh valuation to be obtained from our approved Valuer and margin and LTV Ratio
as stipulated to be ensured.

o Please note that the valuation norms that in case of Property purchased within last 3
years, the amount of Registered Sale Deed is to be taken as value of the Property is
not applicable for takeover Home Loans.

o All other collaterals charged to the previous institution from whom the loan is being
taken over should also be made available as security to our Bank. However, the
condition of securing the loan with the same the collateral securities may be waived
provided the borrower has made payment of above 50% of the loan sanctioned by
such other Banks / HFCs / NBFCs/ FIs etc.

o The institution (Banks / HFCs / NBFCs/ FIs etc) should confirm the above to our
branch and further that they are holding an equitable mortgage over the property.

o The disbursement of the loan should be made directly to the institution and their
receipt kept along with the loan documents i.e. under no circumstances Banker‟s
Cheque be delivered to the Borrower.

o Takeover accounts are to be rated as per the applicable scoring model subject to
minimum grade as per the scoring model.

o The prospective borrower should handover a Power of Attorney (Annexure-24)in

favour of Bank of Baroda along with a letter addressed to the Bank / HFCs from
where finance has been availed authorizing them to deliver the title deeds and all the
collateral securities charged to them, directly to our bank branch upon receipt of the
loan amount.

o In some of the States, the equitable mortgage, after the same is being created, is
also required to be registered before the Sub-registrar‟s office as per the
amendments brought in to Registration Act by the respective states. In such cases
after obtaining the title documents back from the Banks / HFCs / NBFCs/ FIs etc from
where the account is being taken over, Branches must ensure that the

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 borrower/mortgagor has discharged/released the charge created over the properties
by the previous Banks / HFCs / NBFCs/ FIs etc by executing/registering necessary
documents with registering authorities before creation of fresh equitable mortgage
favoring our Bank and the equitable mortgage created in our Bank‟s favor is also
registered.

vi. Extension of the existing House/ Additional Construction:

Extension of existing House and/or additional construction can be considered to our

existing Home Loan borrowers / New Borrowers / Borrowers who have availed Home
Loans from other Banks / HFCs / NBFCs/ FIs etc as per the eligibility of the applicant/s,
within the overall limit of Home Loan scheme.

vii. Reimbursement of Expenses:

a. Reimbursement of expenses already incurred for Houses / Flats constructed /

purchased recently (within 24 months) from own sources can be allowed to good
customers on selective basis.

b. In case of purchase of ready House/Flat, reimbursement can be allowed for the total
expenses incurred (Registered Value) including cost of plot/land.

c. Reimbursement of cost of plot of land (purchased within 24 months) can be allowed

while considering request for Home Loan for Construction of House. In such cases, the
Registered value for plot / land to be considered along with cost of construction by
maintaining applicable margin / LTV.

Reimbursement of expenses as mentioned above to be considered subject to following

additional conditions:

o Such Loans are to be considered only to applicants who secure HL-1, HL-2 or HL-3 risk
ratings under Home Loan Rating model.
o House/flat should have been constructed / purchased recently (not prior to 24
months)
o Margin on total cost (for reimbursement): 25%
o Valuation Report to be obtained from approved Valuer of the Bank.
o Branch to satisfy that there are no institutional / external borrowings against the
house and the amount already spent on the House / Flat has come from own sources
of the customers.
o Branch to verify and keep on record relevant money receipts, bills, documentary proof
of payment/expenditure etc.
o Creation of valid mortgage after obtaining Title Clearance Report from Bank‟s
Advocate.

 For Houses / flats under construction, where some expenses /amount have already
been incurred / paid to builders as advance from own sources by the applicant/s and
the applicant is now requesting for Home Loan for the entire project, in such cases,
the same expense / advance paid to builder can be adjusted towards margin or can be
reimbursed, after stipulation of minimum margin requirements. In such cases, general
norms of margin and rating model will be applicable (instead of 25% margin &
minimum rating of HL -3). Relevant money receipts, bills, documentary proof of
payment/expenditure etc are to be obtained and verified.

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viii. Supplementary Finance:

In the case of individuals who have taken Home Loan for construction / acquisition of
House/ Flat from other Banks / HFCs / NBFCs/ FIs etc and need supplementary finance,
loan may be considered to high class borrowers (HL-1 and HL-2 risk rating) within our
scheme guidelines, after obtaining pari passu or second charge in our favour over the
property mortgaged in favour of other Banks / HFCs / NBFCs/ FIs etc and / or against
such other security as deemed appropriate.

ix. Home Loan for 2ndHouse/ Flat:

Normally, Home Loan is to be considered only for purchase / construction of one House /
Flat. However, looking to the size of the family, income eligibility and repayment capacity
of the applicant/s, Home Loan can be considered for purchase of more than one House/
Flat also.

x. Home Loan for 3rd dwelling unit onwards:

As per RBI guidelines, Bank‟s exposure to 3rddwelling unit onwards to an individual will be
treated as CRE (Commercial Real Estate) exposure.

As such, if any individual (Resident /NRI) owns two or more dwelling units (Houses/
Flats), singly or jointly, then the Home Loan for the third dwelling units onwards (including
Home Loan for purchase of plot), irrespective of the fact that whether the applicant has
availed or not any Home Loan from our/other Bank/HFC/NBFCs etc for previous dwelling
units, is to be considered under „Baroda CRE Home Loan‟ Scheme.

Baroda CRE Home Loans are to be sanctioned by Specialised Mortgage Stores (SMSs) only.
In case the branch considering the proposal is not attached to any SMS, the same should be
referred to Regional Office for sanctioning the Loan by Regional Authority. In such case,
subsequent deviations if any, in any of the parameters, powers of which is vested with
Regional Authority as per regular Home Loan scheme, are to be referred to Zonal Authority
for its approval.

Only one Home Loan (by our Bank) under CRE category should be sanctioned by the
competent authority. In case of more than one Home Loan under CRE category, deviation
powers are vested with COCC (ED) subject to maximum three CRE Home Loans to one
borrower (by our Bank). However, the said loan should be sanctioned on merit by the
competent authority, as the case may be.

xi. Inclusion of cost of Roof Top Solar Photo Voltaic (Solar PV system as a part of
total cost of project for Home Loans:

Department of Financial Services, Ministry of Finance, Govt. of India has advised that
Hon‟ble Prime Minister has desired to add 100,000 MW of solar PV installation capacity of
which 40,000 MW of Solar PV Rooftop in the country during next 5 years. In continuation
of the overall endeavor, it is advised to encourage the Home Loan/ Home Improvement
Loan seekers to install rooftop solar PVs and include the cost of such equipment in home
loan proposals just like non solar lighting, wiring and other such fittings.

Ministry of New and Renewable Energy, Govt. of India has requested all the PSBs to
extend cooperation by providing loans to the loan seekers for installation of Grid-

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Interactive Rooftop Solar PV plants and give vide publicity. It has also advised that State
Nodal Agencies of New and Renewable Energy Dept. will provide all technical support to
the Banks in terms of quality checks, costs of Grid-Interactive Rooftop Solar PV Plants,
availability etc.

These rooftop solar PV plants will be set up in residential, commercial, industrial,

institutional sectors in the country ranging from 1 KWp to 500 KWp capacity. Such rooftop
plants have become economically viable as they produce clean electricity from the solar
energy at about Rs.7.0 per KWp without any subsidy. The Government is providing a
subsidy of 15% on these plants to the beneficiaries who make it further attractive and
viable.

In view of above, it has been decided to include of cost Roof Top Solar Photo Voltaic
(Solar PV) system as a part of total cost of project under Baroda Home Loan Scheme
subject to stipulations in LTV ratio and margin norms as per scheme and RBI guidelines
and without modifying any other parameters of the schemes.

Other guidelines to be considered on Home Loan requirements are as under:

 Branches should not consider/sanction Home Loan proposals to builders where

disbursements are not linked to various stages of construction of housing project.
However, in cases of projects sponsored by Government/ Statutory Authorities, the
sanctioning authority is authorised to consider to disburse the loans as per the
payment stages prescribed by such authorities, even where payments sought from
house buyers are not linked to the stages of construction, provided such authorities
have no past history of non-completion of projects. [Details given in Annexure-7
(e)]
 If the car parking place is located in the same building/society/compound, the cost of
car parking place or area can be considered in the cost of house/flat. However, it is
to be noted that the car parking area should be identifiable, specific and be clearly
mentioned in the sale agreement/allotment letter.
 Property under litigation and in poor condition should not be considered for
financing.
 Requirement of Group Credit Life Insurance Cover - Baroda Home Loan
Suraksha Personal Loan:
As per existing arrangements, Group Credit Life Insurance cover for our Home Loan
borrowers is available under tie-up arrangement with M/s India First Life Insurance
Company Ltd. & M/s Kotak Life Insurance Company Ltd. The insurance cover is
optional and at the cost of borrower by paying single one-time premium. The one
time premium amount for Life Insurance Cover to Home Loan Borrowers under
Group Credit Life Insurance Scheme can be financed as part of Loan at the request
of the borrower, at the time of sanction. However, in such cases, margin & LTV
norms to be considered based on the project cost, excluding this onetime premium.
I.e. the Premium amount can be financed as a part of Home loan after reducing the
Home Loan component to the extent of premium amount. However, the cost of one
time premium amount for Life Insurance Cover to Home Loan Borrowers under
Group Credit Life Insurance Scheme can be financed separately under „Baroda Home
Loan Suraksha Personal Loan‟. (Detail of the scheme of Group Credit Life Insurance
is attached as (Annexure-1)

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 5. Area of Operation:

Home Loan can be sourced/considered by Branch/ Specialised Mortgage Store near to the:
 Location of the property (House / Flat) to be purchased / constructed (or)
 Place of work/business of the applicant/s (or)
 Place of present/permanent residence of the applicant/s (or)
 Branch maintaining salary /NRE account of the applicant

6. Maximum Loan Amount (Ticket Size)

Mumbai : Rs. 10 Crores

Other Metros * : Rs. 5 Crores
Urban Areas : Rs. 3 Crores
Semi-urban and Rural : Rs. 1 Crore
The above limits will be based on the area where property is proposed to be constructed/
purchased, irrespective of the classification of the financing branch.

List of *other Metro Cities (as per census 2011 and RBI classification of
population above 10 Lacs.)

No. City State

1 Delhi Delhi
2 Bangalore Karnataka
3 Hyderabad Telangana
4 Ahmadabad Gujarat
5 Chennai Tamil Nadu
6 Kolkata West Bengal
7 Surat Gujarat
8 Pune Maharashtra
9 Jaipur Rajasthan
10 Lucknow Uttar Pradesh
11 Kanpur Uttar Pradesh
12 Nagpur Maharashtra
13 Indore Madhya Pradesh
14 Thane Maharashtra
15 Bhopal Madhya Pradesh
16 Visakhapatnam Andhra Pradesh
17 Pimpri and Chinchwad Maharashtra
18 Patna Bihar
19 Vadodara Gujarat
20 Ghaziabad Uttar Pradesh
21 Ludhiana Punjab
22 Agra Uttar Pradesh
23 Nasik Maharashtra
24 Faridabad Haryana
25 Meerut Uttar Pradesh
26 Rajkot Gujarat

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 27 Kalyan and Dombivali Maharashtra
28 Vasai Virar Maharashtra
29 Varanasi Uttar Pradesh
30 Srinagar Jammu and Kashmir
31 Aurangabad Maharashtra
32 Dhanbad Jharkhand
33 Amritsar Punjab
34 Navi Mumbai Maharashtra
35 Allahabad Uttar Pradesh
36 Haora (Howrah) West Bengal
37 Ranchi Jharkhand
38 Gwalior Madhya Pradesh
39 Jabalpur Madhya Pradesh
40 Coimbatore Tamil Nadu
41 Vijayawada Andhra Pradesh
42 Jodhpur Rajasthan
43 Madurai Tamil Nadu
44 Raipur Chhattisgarh
45 Kota Rajasthan

i. The cost of extension / additional construction can be considered within the overall
limit of the Home Loan scheme. (Ceiling on maximum amount for extension of
existing House/ additional construction has been removed w.e.f. 01.04.2016.)

ii. The actual quantum of loan should be arrived at after considering the income criteria,
repaying capacity & LTV/Margin norms.

iii. All the sanctioning authorities at Branch / SMS level as well as Regional and Zonal
Offices shall consider the Home Loan proposals up to their DLPs and if the proposal
falls beyond their DLP, same shall be submitted to next higher authority for their
consideration as hitherto.

7. Income Criteria (Income Multipliers):

The maximum amount of loan should not exceed the following:

▪ Salaried Persons
Gross Monthly Income (GMI) less than Rs. 50,000 48 times of GMI
Gross Monthly Income (GMI) Rs.50,000 and above but less than 54 times of GMI
Rs.1 Lac:
Gross Monthly Income (GMI) Rs. 1 Lac and above 60 times of GMI

▪ Others (Self-employed/professionals/agriculturists & NRIs etc.):

Gross Annual Income (GAI) less than Rs.2.00 Lacs 4 times of GAI
Gross Annual Income (GAI) Rs.2.00 lacs & above 6 times of GAI

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 Income to be considered for multiplier:

 For Salaried Persons: Average of last 3 months‟ GMI (Gross Monthly Income)
 For Others: Average of last 2 years‟ Gross Annual Income

 If agriculture/other regular income is declared in the IT return, the same can be

considered for eligibility.
 Depreciation can be considered for computing income, subject to the following
conditions:
‒ The facility will be confined to Businessmen, Professionals, Self-Employed,
Individuals etc who run the business/activity on proprietorship basis.
‒ Sanctioning Authority will ensure verification of the fixed assets, over which,
depreciation is claimed by the applicant during pre sanction inspection and a copy
of report to be kept on record.
‒ Depreciation amount will be ascertained on the basis of last -3- years „Audited
Balance Sheet‟ of Business activity and the latest Audited Balance Sheet should
not be older than -9- months.
‒ Depreciation to be allowed and added to the net income will be average
depreciation during the last -3- years or the depreciation during the current year,
whichever is lower.

i. In Retail Loans, income & repaying capacity are the main criteria for considering loans.
Therefore, critical examination and satisfaction about the employment status of the
applicant, his/her/ their source should be regular, stable, sustainable and of verifiable
nature.

ii. Income from salary/ business/ profession should be in accordance with nature / area of
business, qualification, age, cadre in the organization etc.

iii. In case the applicant is not maintaining SB account with us, branch should obtain
statement of principal account of the applicant, wherein salary/ business income is being
credited and the same be analyzed properly to ascertain the conduct of account and also
to judge applicant‟s other liabilities, repaying capacity. Net Salary credited in a/c may be
cross checked through bank account statement.

iv. Independent enquiries from the employer in respect of salaried person about employment
status and salary should be made. It will help in detection of cases of fabricated salary /
employment certificates as well as in ascertaining the actual income of the applicant. A
copy of latest salary slip along with Form No. 16 (cross verification of salary account with
last 3 salary slips will help the branch to ascertain the genuineness of the income
properly) should be obtained, duly verified with name and designation of the employer.

v. In case of applicants other than salaried persons, the original tax payer‟s copy of Challans
of tax deposited be verified to ascertain genuineness of Income Tax Returns. Home Loan
proposals of the persons, who have filed their income tax returns of last three years in
one lot or if there is major fluctuation in the amount of the tax deposited in the current
year vis-a-vis previous year should be accorded special attention.

vi. In case of Agriculturists who are predominantly dependent on agriculture and not required
to file income tax returns, their income may be assessed by obtaining latest income
certificate from the local competent revenue authority. The income mentioned in the

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 certificate must be assessed properly taking in to consideration land holding of the
Agriculturist, area of land actually being cultivated by him, cropping pattern and acreage
under different crops together with number of crops harvested in a year depending on
availability of irrigation facility etc. The assessment of income so arrived must be properly
recorded with justification in the appraisal note.

In such cases of agriculturists, the latest income as assessed based on the certificate from
the competent authority (instead of average of last -2- years Gross Annual Income) can
be considered for the purpose of income multiplier and FOIR.

vii. If the income of co applicant/s is accepted for the purpose of addition of their income to
the income of principal applicant for arriving higher eligible limit, sustainability of income
of co-applicant/s has also to be ensured and assessed in the same line for salaried/non-
salaried/agriculturist etc as the case may be.

8. Repaying Capacity (FOIR- Fixed Obligation to Income Ratio):

Salaried persons:
FOIR[Total Deductions,
Gross Monthly Income (GMI) including proposed EMI not
to exceed)
Less than Rs. 20,000/- 50%
Rs.20000 and above but less than 50000 60%
Rs. 50000 and above but less than Rs. 2.00 Lacs 65%
Rs.2.00 Lacs and above but less than Rs.5.00 Lacs 70%
Rs. 5 Lacs and above 75%

Others (Self-employed/ Professionals / Agriculturists / NRIs etc.):

FOIR [Total Deductions, including proposed
Gross Annual Income (GAI)
EMI not to exceed)
Upto Rs.6 Lacs 70%
More than Rs. 6 Lacs 80%

 Calculation of FOIR (Fixed Obligation to Income Ratio)

FOIR = [All Deductions + Other EMIs + EMI for proposed Loan] X 100
Gross Monthly Income (appraised)
 The same base of the income as considered for „Income Multiplier‟ (for income criteria) to
be considered for FOIR (Repayment capacity) also.
i.e., For Salaried Persons: Average of last 3 months‟ GMI (Gross Monthly Income).
For Others: Average of last 2 years‟ Gross Annual Income.

Deductions to be considered from the last Month‟s GMI (for salaried persons) or Last
year‟s Annual Income (for others)

Repayment capacity to be calculated taking into consideration the deduction of income

tax, other statutory deductions etc. and other Loans EMI payment, excluding Life
Insurance Premiums. The payment of all type of Life Insurance Premiums (except
premiums of Unit Linked Insurance Plan - ULIP) irrespective of Insurance Company issuing
the policy need not be considered for deduction.

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 9. Margin Norms &Loan to Value (LTV) Ratio:

Loan Amount Margin LTV Ratio

Loans up to Rs.30/- Lacs 10% 90%
Loans above Rs.30/- Lacs up to Rs.75/- Lacs 20% 80%
Loans above Rs.75/- Lacs 25% 75%

Stamp duty, Registration charges, other documentation charges and other expenses like
Life Insurance premium etc. should NOT be included in the cost of house property to
calculate margin / LTV ratio.

However, where cost of the House/ dwelling unit does not exceed Rs.10 Lacs, Branches
may add Stamp duty, Registration and other documentation charges to the cost of the
House/ dwelling unit for the purpose of calculating margin & LTV Ratio.

For existing Home Loans above Rs.75/- Lacs in case the margin is currently less than the
ceiling prescribed for any reasons, efforts should be made to bring to it within limits.

For NRI borrowers, the margin money should be paid by way of foreign inward remittance
through normal banking channels or out of NRE/FCNR/NRO accounts only.

 As per existing arrangements, Group Credit Life Insurance cover for our Home Loan
borrowers is available under tie-up arrangement with M/s India First Life Insurance
Company Ltd. & M/s Kotak Life Insurance Company Ltd. The insurance cover is optional
and at the cost of borrower by paying single one-time premium.

The one time premium amount for Life Insurance Cover to Home Loan Borrowers under
Group Credit Life Insurance Scheme can be financed as part of Loan at the request of the
borrower, at the time of sanction. However, in such cases, margin & LTV norms to be
considered based on project cost, excluding this onetime premium.

i.e. The premium amount can be financed as a part of Home Loan only after reducing the
Home Loan component to the extent of premium amount. However, the cost of one time
premium amount for Life Insurance Cover to Home Loan Borrowers under Group Credit
Life Insurance Scheme can be financed separately under „Baroda Home Loan Suraksha
Personal Loan‟.

 While taking over Home Loans from other Banks/HFCs/NBFCs/FIs etc Branches should
ensure that a minimum margin and LTV Ratio as stipulated above on the value of
residential property is available.

 Advance deposited with the builder is to be treated as margin, only after its genuineness
is checked & verified to the satisfaction of the sanctioning authority.

10. Repayment Period:

Maximum repayment period is -30-years, including moratorium period.

11. Moratorium Period:

Maximum moratorium shall be -36- months as under:

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 -18- months moratorium period for Houses and Building under construction, upto 7th
floor, thereafter -6- months additional moratorium per floor subject to maximum of -36-
months.

Or

One month after completion of House / taking possession of House / Flat, whichever is
earlier.

12. Repayment:

 Loan to be repaid in Equated Monthly Installments (EMI).

 In case of farmers / agriculturists, repayment can be allowed in Half Yearly
installments coinciding with harvesting/marketing of major crops produced.
 Recovery of interest for the moratorium period:
‒ Interest charged during the moratorium period is to be recovered as and when
debited.
‒ ECS Mandate as per extant guidelines to be obtained

(a) Adoption of Specific Pre fixed EMI dates for Retail Loans:

As per the guidelines conveyed vide Circular No.BCC:BR:108/404 dated 02.09.2016, Branches
have to adopt prefixed specific dates - 08th or 16th or 25th as EMI dates for all Retail Loans, out
of which the preferable date convenient to the borrower, considering the salary date/ monthly
remittance dates etc. In any case, even in case of loans with moratorium also, the dates -
principal demand date/ interest demand date/ first repayment start date should be uniform for a
particular account and should be 08th or 16th or 25th. The above guidelines are applicable to all
the fresh sanctions of Retail Loans w.e.f. 10.09.2016.

(b) Guidelines on Recovery of EMIs through ECS (Debit) & Security of PDCs

Facility of recovery of Retail Loan EMIs through ECS (Debit) Mandate for all our existing as
well as prospective customers has been implemented w.e.f. 10.09.2013 vide Circular
No.BCC:BR:105/385 dated 03.09.2013.

In this connection, IBA has communicated as under:

1. In terms of Reserve Bank of India, Department of Payment and Settlement Systems letter
DPSS. CO. CHD. No. / 209 / 04.07.05 / 2013-14 dated 24th July, 2013 on Migration of
Post-dated cheques (PDC)/Equated Monthly Installment (EMI) Cheques to Electronic
Clearing Service (Debit), Banks need not obtain additional cheques, if any, from the
customers, in addition to the ECS Mandates, for the reason that Section 25 of the Payment
and Settlement Systems Act, 2007 accords the same rights and remedies to the payee
(beneficiary) against dishonor of electronic funds transfer instructions under insufficiency
of funds as are available under Section 138 of the Negotiable Instruments Act, 1881.

i. Section 138 of Negotiable Instruments Act, 1881 is a very resourceful & cost
effective legal tool in recovery of dues from defaulting customers. Under this section,
banks have an option of filing one complaint by clubbing multiple dishonored
instruments issued by the borrower. However, this is not possible, if banks do not
take Security PDCs in case of ECS mode of repayment. If the bank does not take
Security PDCs for the ECS Mode of repayment and if action has to be initiated under

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 provisions of Payment and Settlement Act, bank may have to file separate complaint
for each instance of such dishonor. This may lead to huge delays and may give rise
to accumulation of cases before the Magistrate.

ii. In case of an ECS Mandate, the Customer may withdraw his ECS mandate from his
banker without notifying the bank. In such a situation, in the absence of Security
PDCs, bank may not be able to recover its EMIs from the borrower and legal action
under Payment and Settlement Act may not be maintainable.

Considering above, it is imperative for the banks to obtain a couple of CTS-2010 compliant
Cheques from Customers as Security Cheques in addition to the ECS Mandate.

2. As decided by the Managing Committee, IBA had written to the RBI stating the above
issues involved and requested that as a risk mitigation measure, banks may be permitted
to obtain couple of CTS-2010 standard compliant Cheques from customers as Security
PDCs in addition to ECS mandate for ECS backed loans.

3. RBI vide their letter DPSS.CO.(CHD) No.1353/04.07.05/2013-14 dated 20th December,

2013 had advised that the provisions of Chapter XVII of the Negotiable Instrument Act
1881 are applicable to dishonor of electronic fund transactions to the extent the
circumstances admit. Further, in one of its judgments in March 2013, Supreme Court held
"if a person issuing a post-dated cheque stops its payment by giving instructions to the
drawee or the bank before the due date of payment, he/she would be liable for penal
consequences under Section 138 of the Negotiable Instruments Act." In view of the
protection available to banks as stated above, banks were advised by the RBI not to
accept additional cheques from borrowers while taking ECS (Debit) mandate vide their
circular dated 24th July, 2013.

4. However, taking into account the operational concerns expressed by IBA, RBI had asked
IBA to advise banks to take few additional cheques (in CTS-2010 standard format) as
security as per respective banks‟ policies. However, it may be noted that such instruments
are to be used only for the purposes as stated above and should not to be presented in
inter-bank clearing as a matter of routine.

In view of the above guidelines, all the Branches/SMSs to take a couple of PDCs (Post Dated
Cheques in CTS-2010 standard format) as security in addition to the ECS mandate for Retail
Loans. In existing Loan accounts where only ECS mandate are taken or the PDCs taken are
exhausted/stale, a couple of PDCs in CTS-2010 format to be obtained to protect the interest of
the Bank.

Change in status of the Borrower (in case of Home Loan to NRI/PIO/OCIs)

In case of change in status of the borrower during the tenure of the loan, the repayment
schedule may be reworked-out keeping in view his revised status / income / repaying
capacity, age etc.

The branch should obtain the request in writing from the borrower to this effect. The
revised repayment schedule / rate of interest / other terms and conditions should be advised
to the borrower in writing and acceptance thereof should be obtained from borrower/co-
borrower/s and guarantor/s.

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13. Rate of Interest (Pricing):

▪ Risk Based Pricing: Applicable rate of interest on Home Loan will be based on CIBIL
score of the applicant/co-applicants, whose income are considered for eligibility as
under:
CIBIL Cut off Score *** Rate of Interest
800 and above 1 year MCLR + Strategic Premium
760 to 799 1 year MCLR + Strategic Premium
725 to 759 1 year MCLR + Strategic Premium + 0.50%
675 to 724 1 year MCLR+ Strategic Premium + 1.00%
(-1) or (0) 1 year MCLR + Strategic Premium + 0.50%
For Staff members
1 year MCLR + Strategic Premium
(irrespective of CIBIL score)
*** CIBIL Transunion Score as per Version- 1. (Cut off score is detailed in Point No.14
below)

The rate of interest will be reviewed annually on due date of review of the account.
Accordingly, ROI will be revised based on the CIBIL score of the borrower and the
applicable spread over „1 year MCLR + Strategic Premium‟ in force on due date of review.
In case CIBIL score is less than 675, applicable rate of interest will be with maximum
spread as per the product (i.e. 1 year MCLR+ Strategic Premium + 1.00%)
i. Fixed Interest Rate Option:

Fixed Interest Rate option stands withdrawn w.e.f. 01.07.2010 and no loan shall be
granted at fixed rate option. However, Loans sanctioned prior to 01.07.2010 under fixed
rate option shall continue till their reset period/maturity whichever is earlier.

ii. Floating Interest Rate Option:

(a) Floating interest rates linked with Base Rate:

For Home Loans sanctioned under floating interest rates prior to 01.04.2016 are linked
with Base Rate and will undergo change as and when Bank will revise Base Rate.

(b) Floating interest rates linked with Marginal Cost of Funds Based Lending
Rate (MCLR).
Marginal Cost of Funds Based Lending Rate (MCLR) is a new internal benchmark
lending rate for all new sanctions and disbursements w.e.f 01st April 2016. Actual
lending rates will be determined by adding the components of spread to the MCLR.
Tenor premium shall not be charged over and above MCLR as it is already built in the
respective tenor specific MCLR.
The MCLR guidelines related to Home Loans are as under:
o MCLR will be effective from 1st April 2016 for all new sanctions of Home Loans
o Applicable interest rate will be based on Effective MCLR prevailing on the date of first
disbursement.
o Rate of interest will be reset on annual basis
o Next re-set date for MCLR will be after one year from the first disbursement date.

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 o Effective MCLR applicable for existing borrower opted for shifting from Base Rate will
be the effective MCLR prevailing at the time when the borrower exercises the option
with the existing credit spread.
o Sanctions prior to 01.04.2016 may be disbursed with reference to Base Rate and the
existing rules of Base Rate will be applicable unless the borrower opts for MCLR
linked reference rate
o Existing Loans and credit limits linked to Base Rate may continue till repayment.
Existing borrower will also have the option to move to the MCLR linked reference
rate without being treated as a foreclosure of existing facility. (Once a borrower opts
for MCLR, switching back to Base Rate system is not allowed).
o Request of existing borrowers for shifting from existing fixed rate option, if any, to
MCLR linked reference rate should be referred to appropriate sanctioning authority.

Subsequent to the introduction of MCLR w.e.f. 01.04.2016 and the risk based pricing linked
to CIBIL score of the borrowers for Home Loans, the applicable rate of interest of Retail
Loans on different scenarios and on review will be as under:

(A) Sanctions prior to 01.04.2016 and Continuing with Base Rate System:
- The same ROI structure with existing spread over Base rate will be continued till its
maturity/ repayment and existing rules of Base Rate will be applicable.

- At the time of review, same ROI structure with existing spread over Base Rate will
continue. Risk based pricing linked to CIBIL score need NOT to be carried out for
Home Loans sanctioned prior to 01.04.2016 and continuing with Base Rate system.

(B) Sanctions prior to 01.04.2016 and first disbursement on or after

01.04.2016:
- Sanctions prior to 01.04.2016 may be disbursed with reference to Base Rate and the
existing rules of Base Rate will be applicable unless the borrower opts for MCLR
linked reference rate.

(C) Sanctions prior to 01.04.2016 and subsequently opted for MCLR linked
reference rate:

(i) At the time of Conversion:

- The ROI will be based on the effective MCLR prevailing at the time when the
borrower exercises the option. The existing credit spread over Base Rate for the
particular Home Loan account to be added to 1 year MCLR+ Strategic premium
for arriving the effective ROI on conversion. Risk based pricing linked to CIBIL
score of the borrowers need NOT to be carried out at the time of conversion.

(ii) At the time of Review:

- At the time of Review, same ROI structure with existing spread over 1 year
MCLR+ strategic Premium will continue without Risk based pricing (linked to CIBIL
score).
- In case the borrower opts conversion to MCLR at the time of review, the existing
credit spread over Base Rate for the particular account to be added to 1 year
MCLR+ Strategic premium for arriving the effective ROI from the date of review.

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 An option of Flexi interest rate providing therein part of the loan under fixed and part
of the loan under floating rate option, conveyed through circular no. BCC: BR: 99:97
dated 30.03.2007 stands withdrawn and will not be available henceforth (existing
accounts will be continued as earlier).

 All existing Home Loan borrowers who maintain a good track record of repayment are
eligible for a concession of 25bps in interest rate on prevailing card rate on Car Loans
(including Car Loan to HNIs) w.e.f. 08.06.2010. This concession is in addition to the
concession of 50bps being offered to the Car Loan borrowers who offer liquid securities of
a minimum of 50% of the loan limit as prescribed in the product profile of Car Loan,
subject to the condition that effective applicable rate should not go below Base Rate/ I
year MCLR + Strategic premium, as the case may be.

 All Home Loan borrowers are eligible for 0.50% concession in rate interest for purchase
of consumer durables under Baroda Personal Loan.

14. Bureau score validations:

‒ Cutoff on CIBIL score is stipulated at 725.

‒ If more than one applicant is there, AVERAGE of CIBIL scores of the applicants (whose
income are considered for eligibility), to be considered for Cut off score for sanction of
Loan as well as for Pricing.

‒ In such cases, CIBIL score of applicant/s having (-1) or (0) to be excluded for average
calculation.
However, in such cases of joint applicants, individual CIBIL score of all the applicants
(whose scores are considered for average calculation) should be minimum 675.

Deviations in Bureau Score validations:

1. Deviations in CIBIL score can be considered for existing as well as new customers with
proper justifications which are to be mentioned in the Appraisal Note.

2. Proposals of applicant/s having CIBIL score of (-1) or (0) can be considered by the
Sanctioning authority, without deviations, for existing as well as new customers.

3. Cut off CIBIL score 675 to 724: Deviation decision with RMCC. (if number of applicants
whose income is considered for eligibility is one.)
In case of more than one applicant, if average score is 675 to 724 and/or any of the
applicant/s score is less than 675: Deviation decision with RMCC.

4. Cut off CIBIL score less than 675: Deviation decision with ZOCC (if number of
applicants whose income is considered for eligibility is one). The applicable ROI will be
with maximum spread as per the product.

In case of more than one applicant, if average score is less than 675 and/or any of the
applicant/s score is less than 675: Deviation decision with ZOCC. The applicable ROI
will be with maximum spread as per the product.

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 Deviation Matrix in case of more than one applicant:

**Average Score And /or Deviation

(Cut off Score) ** Individual score of any of powers
applicant/s
675 to 724 Less than 675 RMCC
Less than 675 Less than 675 ZOCC
Average Score (Cut off Score) 725 and above; BUT Individual RMCC
score of any of applicant/s is less than 675.
Average Score (Cut off Score) 725 and above AND Individual No Deviation
score of all applicants are 675 & above. required
** Excluding applicants having score of (-1) or 0

Note:

(a) CIBIL score of applicants having (-1) or (0) to be excluded for average calculation and
for deviation.
(b) CIBIL score validations are applicable only for applicant/s whose income is considered
for eligibility.
(c) In case, multiple deviations in CIBIL score are required to be considered at various
levels (i.e., one at RMCC & another at ZOCC), all the deviations in CIBIL score to be
considered at higher level.

(d) Credit Card default:

 Cases where credit card account status write-off / settlement involving amount upto
Rs.25,000/- (consolidated amount of default) No deviation is required (in case of
fresh, review with increase & takeover proposals)

 Cases where credit card account write-off / settlement involving amount above
Rs.25,000/- took place in the past: Deviation powers rest with the authorities as
under:

Parameter Authority
For proposals falling upto the powers of RMCC ZOCC
For proposals falling under the powers of ZOCC COGM (BCC)

In case of review of accounts, sanctioning authority may take a view in all such
cases without referring for deviation.

While accepting the credit card account write-off / settlement above Rs.5000/-
sanctioning authority to ensure the following:

 No Due certificate from the Bank / FIs be obtained in respect of credit card
account
 Borrower is impressed upon for updation of „satisfactory status‟ with the
concerned Bank / FIs, preferably within stipulated period.
 Ensure that „Bureau Report‟ of the applicant/s contains no other adverse
remarks.

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 15. Submission of Home Loan application and preliminary scrutiny:

Submission of Home Loan application may be either through online or by physical mode.

(i) Application through online mode:

As an additional means of sourcing of Home Loan applications, a link has been provided at
Home Page of our Bank‟s website www.bankofbaroda.com for submission of online
application for Home Loan by loan aspirants.

The system of online application for Home Loan has been recently revamped (with an
in-house package) and available in our website with additional features of „Get the Loan
Eligibility and „Instant In-principle sanction‟

Features of the system and operational guidelines are given as per Annexure- 6.

(ii) Application by physical mode:

a. On receipt of the application form, the same should be scrutinized to ensure that
application has been completely filled in and all the necessary relevant papers particularly
pertaining to identity of the applicant, residence, employment / business and property to
be purchased/ constructed has been enclosed to the application form.

b. It is mandatory for all operating units to feed the details of all type of Retail Loan
applications received at Branches/SMSs in the Loan Tracking System (LTS).

c. The information collected during verification and interview should be noted and the same
should be re-checked by an officer of the branch/SMS to ensure that requisite information
has been furnished in respect of all the parameters stipulated.

d. The interview with the applicant/s should usually cover:

 Cross checking of details furnished in the application form.
 Details of his/her employment, business, his/her existing residence and the present
bank.
 Location of the property, builder's details and details of flat/ house proposed for
purchase.
 If the location of the property, business place of the borrower, residence and the
branch where he/she has applied for the loan is at far off places from each other, this
should be inquired into.
 At the time of applicant‟s interview other interested parties like Builder etc. should not
accompany the applicant.

e. Details of assets and liabilities mentioned by the applicant in the application form should
be verified from the relevant documents.

f. The details of applicant about his/her employment, business and residence, furnished in
the application should be cross checked telephonically by making call to his/her
residence/business establishment/employer.
g. Documents submitted for identity and proof of residence i.e. Ration Card/ photo-identity
card/Aadhar Card/ PAN card/ Driving License/ Passport etc should be properly scrutinized

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 and to be verified from originals to confirm genuineness of the documents submitted. A
noting to this effect should be made on photocopies and kept on record.

h. Credit Information Reports (CIR) from Bureaus in respect of applicant/s and guarantor
should be generated and meticulously verified as per extant guidelines. CIR from Bureaus
provides a testimony of loan aspirants‟ financial discipline to Banks and financial
institutions for taking a credit decision. A healthy Bureau Report and a high Bureau Score
indicates that the applicant managing his/her loans and credit relationships well and are
financially savvy. It is therefore vital to understand the various elements of a credit report
well.

Presently our Bank uses CIBIL Trans Union Score under Version -1 for risk based
pricing for Home Loans.

i. Proposals for financing a house / flat developed by the builders not having good
reputation in the local market / whose names are appearing in the negative list should not
be considered.

j. Involvement of middlemen is highly irregular and should be avoided at all costs.

k. Based on the scrutiny of the loan application, relevant documents & Pre-sanction
inspection, the branch / SMS will take a decision to go ahead for verification of title deed,
obtaining legal opinion from the empanelled Advocate. The report of the advocate
should be exhaustive and complete containing all vital points as mentioned in the model
draft letter to be addressed to the Advocate should be obtained. The report received from
the Advocate should be carefully studied by the branch officials.

Legal opinion of the document should be based on examination of original title deed
only and not on the basis of the photocopies. However in case of In order to ensure that
panel advocate incorporates all vital points in his report relating to the property offered
as security such as non-encumbrance, marketability and title of the property, the branches
are advised to send letters to Advocates as per model draft [Annexure -21(a)] while
seeking his / her opinion.

l. Advocate should submit their Title Opinion Report [as per the format given in Annexure-
21(b)] inter-alia certifying non encumbrances of the property considering all the relevant
aspects which are essential for creation of valid and enforceable mortgage to secure the
Bank‟s advance. Reports which do not contain the information on the points mentioned in
the format must not be accepted. However, the draft format is merely a checklist/ outline
covering substantial aspects which the advocate should address and is not exhaustive.

16. Mandatory feeding of Tracker ID for processing in LAPS for Retail Loan
applications:

As per existing guidelines, it is mandatory for all operating units to use the Loan Tracking
System (LTS) for feeding the details of all type of Retail Loan applications received at
Branches/Retail Loan factories. Further, it is mandatory to process all the Retail Loan
products which are available in LAPS invariably through LAPS by all the branches and
SMSs.

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(a) Mandatory Tracker ID of LTS for processing in LAPS:

 In order to process any proposal in LAPS it has to be mandatorily first entered in Loan
Tracking system.
 The requisite details of the application to be entered in the Loan Tracking System.
 The user has to go to modify the proposal and to click on „Approve for process in
LAPS‟.
 Then Loan Tracking Tracker ID generated in the Loan Tracking System has to be used
for processing the same proposal in LAPS.
 Users can use „Retail Panorama‟ option in LTS for various Reports.

(b) User Management in Loan Tracking System (LTS):

Add / delete user:

If the user is new to Loan Tracking System, the addition of user can be done by Regional
Office/Zonal Officer user using „User Management‟ option. Deletion option is also available
in the same option.

Regional office/Zonal Officer User can follow the steps given below:
1. Click on User Management
2. Select user level (Branch/SMS/RO/ZO)
3. Select Branch/office name from dropdown list
4. Click on Add
5. Enter the user id and name of user
6. Click on Save

Change of Branch/ Reporting Office:

If the user is appearing in a different Branch/Office, the reporting branch/office of the
user has to be changed through LTS. If any user of the branch/office who is having access
to LTS can change the reporting centre of the given users to present branch using the
option „Reporting Office”.
Steps are given below:
1. Click on Reporting office on the main page of Loan tracking system
2. Enter the user ids of the user whose reporting office has to be changed to present
reporting centre
3. Click on "Change Reporting".

Change of Branch/ Reporting Office can be done by Region/Zonal office user, using „user
management option‟ as under:

1. Click on User Management

2. Select user level (Branch/SMS/RO/ZO)
3. Select previous branch of the user (if pertains to same Region for Regional office user
and same Zone for Zonal Office user) from dropdown list.
4. Select the user id
5. Click on delete
6. Select present branch of the user from dropdown list
4. Click on Add
5. Enter the user id and name of user
6. Click on Save

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 16. Security:

i. Mortgage of residential property to be constructed / purchased.

ii. If mortgage is not feasible, Branch can accept, at its discretion, security of adequate
value in the form of Fixed Deposits, Life Insurance Policies, Government Promissory
Notes, Shares and Debentures, Gold ornaments or such other securities including third
party guarantee from individual/s as may be deemed adequate, with the prior
permission of Regional Head. Margin on securities is to be maintained as per
extant guidelines applicable for financing against such securities.

iii. Even if it is possible to create Mortgage but customer desires that the Mortgage need
not be insisted upon, in such case Branch may as a special case, accept at its
discretion, security of adequate value in the form of Fixed Deposits, Life Insurance
Policies, Government Promissory Notes, Shares and Debentures, Gold ornaments or
such other securities including third party guarantee from individual/s as may be
deemed adequate, with the prior permission of Regional Head, along with
stamped undertaking that the borrower shall not create any charge on the said
property to any third party and that he will create mortgage of the dwelling units /
residential property at a later date if desired by the Bank, be obtained from borrower.
Margin on securities is to be maintained as per extant guidelines applicable for
financing against such securities.

iv. In cases where procedure for execution of Sale Deed / Conveyance Deed, forming a
Co-operative Society and issuance of Share Certificate takes a very long time and as
such there are practical difficulties in creating Mortgage at the time of disbursement of
Home Loan for Residential units developed by Builders / Developers, following
procedure may be adopted:

The Branch to create mortgage by obtaining following documents duly supported with
the advocate‟s search report and opinion on title of the land as also on the Agreement
to Sale.

 Original „Agreement to Sale‟ executed by builder in favour of borrower, duly

stamped and registered.
 Index – II Property Card
 Original Receipt in respect of registration of „Agreement to sell‟.
 Copy of the map of the building duly approved by the appropriate authority.
 NOC from builder for creating mortgage and noting of Bank‟s lien if the building is
under construction.
 Share Certificate, if Society is formed, duly supported with NOC from the Society for
creation of mortgage and noting of our lien in society‟s record.
 Possession Letter in original.
 NOC from the financing Bank/NBFC, if the Builder has obtained Project Finance.
However, Branches should subsequently obtain original sale Deed or Conveyance
Deed, original receipt of Registration, Original Index II and Original Share Certificate
issued by the Society and deposit the same by way of Supplementary Deed of
Mortgage along with original Mortgage.

 As regard stamp duty, the same is to be paid as applicable on Memorandum of Deposit of

Title Deeds.

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 Branches, however, should note to obtain the copy of sale deed executed by the builder in
favour of co-op society and also to obtain share certificates issued by society as and when
formed during pendency of the loan.

In order to prevent frauds in Home Loan by submitting forged documents/

connivance of builders / noting of lien by builder, branches are required to follow
steps mentioned hereunder:

 The genuineness of transaction and the documents supporting the transaction must be
verified by proper inquiries.

 The Bank officials should physically verify from the builder, by visit to the regular office of
the builder and not merely by visiting temporary site office of builder at the building,
whether, the builder has executed the Agreement for Sale of flat/ property with Borrower
or physically verify the existence of a builder and / or obtain a letter from him of his
intention to execute the document on receipt of initial installment / margin amount
required to be paid for by Borrower.
 Wherever builders / promoters are required, as per local law, to obtain compulsory
registration of their activities as Builders / Promoters, as in the State of West Bengal, the
branches must verify and ensure that the flats constructed are by registered
Promoters / Builders. Further, the completion certificate of the Building and occupation
certificate issued by Municipal Authorities in respect of the building in which flat /
premises are situated should invariably be scrutinized by Advocate and clearance of such
formality should be included in their report on title.

 In the same manner, the Bank officials should enquire from the builder about the receipt
of the payment made to him and modality for payment of balance amounts of loan /
installments to be disbursed by Bank, as per request made by borrower directly to builder
together with approval of the builder to record Bank‟s charge on the Flat on execution of
loan documents by Borrower.

 Standing of the builder in the market should also be ascertained by the branch by making
enquiry about his reputation and past record.

 After execution of loan documents complied with memorandum of deposit of title deeds,
Bank should ensure to get noted its charge on the flat/ property, should be registered
immediately with the office of the Sub- Registrar of Assurances under the optional
registration, and the Bank official should ensure that the office of the Registrar of
Assurances has issued index – II in favour of the Borrower registering the documents.

 The stamp paper/ stamp must be purchased from the Stamp Office or from Government
approved authorized vendors / agencies.

Safeguards to be observed for accepting the property as security:

i) The search report from an empanelled Advocate should elaborately deal with scrutiny of
records in respect of the property on which the flats / houses are constructed from the
office of Sub-Registrar of Assurance and from the Records of Civil Court in the
Metropolitan Cities of Mumbai, Delhi, Kolkata and Chennai, showing dispute pending in
any of such courts is a prerequisite for consideration of Home Loan. Mere report on the
strength of copies of documents obtained from Builder / intending seller cannot suffice.
Further report on title should narrate the history of title brought down to the builder‟s

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 right to own or develop the property should be clearly narrated and for this purpose cost
of searches and expenses as also the legal fees should be commensurately fixed in
advance and authorization from the intending borrowers to pay the same should be
obtained.

ii) Before registration of the duly embossed and duly stamped documents / agreements with
Registrar of Assurances, a search should be taken in the pending registry records to verify
whether the same flats have already been mortgaged / encumbered.

iii) While accepting properties for mortgage, it should be done only after taking physical
search in sub registrar's office and land records concerned and all documents are required
to be entered before Registrar of Assurances (ROA).

iv) Builder‟s undertaking should invariably be obtained to the intent and effect that the flats/
houses intended to be sold to the intending purchaser are not agreed to be sold to any
other person and he is agreeable to the bank‟s lien being noted in his records and books
in respect of the flats / houses restraining the intending purchaser to sell mortgage or
transfer in favour of any other person without the consent of the bank.

v) An affidavit should be obtained from the mortgagor that the property to be equitably
mortgaged is free from encumbrances of any sort and that no suit is pending and that
there is no attachment of any type of the said property.

vi) Original title deeds should be deposited with the bank. It should be carefully noted
that the copies of title deeds or extract of revenue records/property card do
not constitute the title deeds nor an agreement for sale or a municipal order
directing handing over the land and title deeds for the purpose of creation of
valid equitable mortgage.

vii) Where equitable mortgage of property has been stipulated as security for any facility, the
facility should not be released against an undertaking to create equitable mortgage of the
property, without the prior written permission from the sanctioning authority.

viii) In case of leasehold property, prior written consent of the lessor for creation of mortgage
should be obtained. The lease period should be not less than 30 years. However,
unexpired period of lease should be equal or more than the repayment schedule of the
proposed loan.

ix) In the following cases, it is to be ensured that Deed of Conveyance has been executed
and registered.
 Where the property relates to Cooperative society registered under Gujarat
cooperative society Act, 1961; sale by such society in favour of its member, even
where member is first allottee or in resale by members inter se.
 Where the property is allotted by Gujarat Housing Board or Gujarat Rural Housing
Board.

x) Where the property to be mortgaged is a vacant land or „excess land‟ within the meaning
of Urban Land Ceiling & Regulation Act, permission of competent authority should be
obtained for creation of equitable mortgage, if the Act is still in force in the State where
the property is situated.

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xi) In case of properties situated in any of the Union Territories of India, especially at Daman,
the permission of Collector/Administration is required to be obtained for creation of
equitable mortgage as these properties are owned by the Government and only
occupancy rights are assigned to its holder.

xii) It must be ensured that no Income-tax / house tax / water tax etc. dues are pending
against the vendor and a certificate to this effect may be obtained from the competent
authority alternatively evidences to verify the above facts may be obtained and kept on
record.

xiii) In case, the property belongs to partnership firm/joint owners, authority of all
partners/joint-owners must be obtained for creation of mortgage.

xiv) While creating equitable mortgage by deposit of title deeds, a photograph of the
borrower/his representative who is authorized to deposit the title deeds, duly signed by
him across the photograph may be obtained.

xv) Signature of the person depositing title deeds should be obtained in the register
maintained by the branch for the purpose. (Not on Mortgage Memorandum).

xvi) After the mortgage is created or extended, a letter of confirmation in the form of LDOC-90
(R) to be obtained from the depositor/owner.

xvii) Wherever Mortgage Security is created by a person on the strength of Power of Attorney
(POA), before creation of Mortgage, the POA should be got scrutinized by the Bank's
Advocate/Legal Department to ensure that the requisite powers are contained therein.

xviii) Details of the property are to be entered in Finacle through menu option – CERSAI.

xix) Besides, valuation report submitted by Govt. /Approved Valuer in respect of immovable
property, the Sanctioning Authority should assess the value of the property independently
to detect any over valuation of the property to avail excess finance or to avoid applicant‟s
contribution towards margin. Integrity and market reputation of the Valuer should be of
high order.

xx) If the builder is a private limited or a public limited company, report from the office of
Registrar of Companies should obtained for ensuring that the entire property (in which flat
proposed to be financed) is not charged in favour of any bank / financial institution /
other creditor for finance availed by the company.

Mortgage of Property - General Precautions:

I. Mortgage created on the basis of fabricated documents/ copies of documents/

incomplete chain of titles is not a valid and enforceable mortgage.

II. Agreements for Sale or for Lease are not Title Deeds. The copies of the Government
Records or Revenue Records are also not the documents of title.

III. Mortgage of agriculture land to secure non - agriculture advance requires permission
of the Land Revenue Authorities and encumbrance should be got noted in the land
records. For any activity other than agriculture on agricultural land, conversion of
agriculture land into non - agriculture usage is must.

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 IV. A mortgage is a transfer of interest in a specific immovable property. Hence, great
care should be taken to ensure that full and correct description of the property
mortgaged is given such as, Revenue Survey Number, Plot Number, House/
Tenament Number, Location or Number of Road/Street, Area, Village, Taluka,
District, etc., giving the particulars of the boundaries.

V. If the description of property is too general or vague, it could lead to difficulties at

the time of enforcement of mortgage.

VI. If the property is wrongly described, it would mean taking a mortgage of some other
property, not belonging to the mortgagor. In that case, the Bank may not be in a
position to execute the mortgage decree even when it is obtained against the party.
It is therefore advised that full details of the property should be verified at the time
of inspection of proposed mortgage properties as narrated above.

VII. Branches to insist on opening of bank account as per ' KYC' norms by owners of the
property who offer the same as mortgage security against the loan given to third
parties.

VIII. Latest copies of House Tax receipts/ Electricity Bills etc. are to be obtained as proof
of possession/residence.

IX. In case property proposed to be mortgaged is under tenancy / leased to a third

party, the same will reduce the marketability and value thereof. It is necessary to
take this aspect into consideration while accepting such property as security.

X. The letter of cost should be obtained from the borrower/ guarantor who has
mortgaged the property to enable the Bank to ask for costs, charges, fees, and
expenses as may be incurred by the Bank in this behalf.

XI. Branches to accept complete chain of titles in original along with the other
documents as advised by the advocates in their search report to the branch.

XII. In case of lease - hold property, prior written consent of the lessor for creation of
mortgage should be obtained. It is advisable to avoid privately leased property, more
particularly, if for lease less than -30-years. In all cases, the term of lease deed also
needs to be perused to ensure that there is no clause adversely affecting Bank's
interest.

In case of tenanted properties, Branches are advised to take note of Circular no.
BCC: BR: 106:149 dated 10.04.2014 and BCC: BR: 106:240 dated 27.06.2014
regarding „adjudication of Tenancy rights in SARFAESI proceedings - Precautions
to be taken by the Bank‟, before creation of mortgage of securities as under:-

In view of the recent ruling by Honorable Supreme Court in adjudication of Tenancy

rights in SARFAESI proceedings (in Harshad Govardhan Vs International Asset
Reconstruction Company Ltd and others), and also in order to protect the interest
of the bank as secured creditor, it is suggested that the following precautionary steps
may be taken while obtaining mortgage of immovable property.

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 While obtaining any mortgage over an asset as security the said immovable property
should be physically inspected so as to confirm that the Mortgagor is in possession of
the said immovable property and that no lease subsists. Minutes may be recorded
w.r.t to such inspection which shall be duly signed by the inspecting bank official and
counter signed by the Mortgagor in presence of two witnesses. The said minutes are
to be kept along with the loan documents.

The following may be added at the beginning of Clause 11 of LDOC 90 (C) i.e.,
Declaration to be obtained from individual mortgagor:

“I/ We hereby declare that I/ We have not leased out the property
comprised in the mortgage security to any third party and there is no lease
subsisting on the said property. I/We am/ are in exclusive possession of
the immoveable property offered as security and no other person including
any lessee is in possession of the same as on date.”

Similar declaration may be included at the beginning of clause 13 in LDOC 90 (e),

i.e., Declaration to be obtained from partnership firm/ company/ Trust.

“I/ We hereby declare on behalf of the Partnership Firm/ Company/ Trust

that the Partnership Firm/ Company/ Trust has not leased out the
property comprised in the mortgage security to any third party and there is
no lease subsisting on the said property. The Partnership Firm/ Company/
Trust is in exclusive possession of the immoveable property offered as
security and no other person including any lessee is in possession of the
same as on date.”

In case said property offered for creation of mortgage is already leased out, then
production of the registered lease deed should be insisted and the term of lease be
also considered while considering credit facilities in such cases. Even though tenant
may be enjoying protection under the respective State‟s Rent Control Act against
landlord, it is viewed that such protection cannot be claimed against secured creditor
and no fresh lease can be granted in view of provisions of section 13 (13) of
SARFAESI Act. As discussed in the said judgment, in case the bank is unable to take
the possession of the secured assets after the expiry of 60 days period then in such
circumstances the bank will be entitled to receive any money dues including rent
from the lessee to the borrower/guarantor. It is also reiterated that since CMM/DM
does not have powers u/s 14 of SARFAESI Act to take possession of secured asset
from a lessee in lawful possession under valid lease and handover the same to the
secured creditor, when Bank moves CMM/DM for assistance to take possession of75
secured assets, Bank must state in the affidavit to be filed u/s 14 of the said Act that
the secured asset is not in the possession of a lessee under valid lease made prior to
creation of mortgage by borrower or made in accordance with provision of section 65
A of Transfer of Property Act prior to receipt of notice u/s 13 (2) of SARFAESI Act by
the borrower.

 Since a wrong / defective mortgage will jeopardised bank‟s interest, it is advised to

exercise utmost care and due diligence while accepting any property as security and at
the time of creation of mortgage. All other guidelines as mentioned in Book of
Instruction-9 and other circular from time to time should be strictly adhered to
verbatim.

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17. Risk Rating:

All Home Loan applications are subject to Risk rating. Credit rating is to be carried out as
per Home Loan Model‟‟ under Retail Rating Models. Total marks are 168 and the cutoff is
set at 96 (Investment Grade HL-8).

However, if the Home Loan is sanctioned for reimbursement of expenses incurred for
houses / flats constructed / purchased recently from own sources, as mentioned in Point
No. 4 (vii), minimum investment grade should be HL-3.

Similarly, if home loan is sanctioned as supplementary finance as mentioned in Point No. 4

(viii), minimum investment grade should be HL-2.

The details of the rating parameters and risk rating model given in Annexure– 5

18. Documentation

Following documents are to be obtained:

i. Term Loan Agreement – LDOC – 23A
ii. General Form of Guarantee (LDOC 33) wherever third party guarantee is stipulated.
iii. Usual procedure for creation of Mortgage of the Residential immovable property being
financed.
iv. Documents required to be obtained for recovery as per State Recovery Act.

Execution of Documents & Operation through Power of Attorney

A person intending to buy a dwelling unit through finance from a bank has to undertake a
series of activities viz. identification of a dwelling unit, finalization of deal with the builder/
developer of the property, submission of loan application to financing bank, execution of
loan documents, obtaining disbursements, taking possession of the property and
complying with various related formalities. The series of these activities are time involving
and may require presence of the buyer/s. It may not possible for Non Resident Indians to
visit India frequently for completing / undertaking various tasks related to finalization of
the property and obtaining the loan from a Bank.

If it is decided for valid and justifiable reasons to permit the Power of Attorney holder to
execute the documents, the relative powers of attorney should be registered in the books
of the Bank and a true copy of the Power of Attorney should be kept with the documents.

Copy of standard format of Power of Attorney is enclosed in Annexure-22

1. An NRI (not under any legal incapacity to contract) desirous of granting Power of
Attorney in favour of his relative or anyone else may do so in the draft format as per
Annexure-22.

2. The Power of attorney to be executed abroad shall be got attested by the

office of Indian Embassy of that country. Such a Power of attorney needs to be
executed at the office of Indian Embassy only and not at the office of Embassy of
that foreign country.

3. Branches should ensure that POA granted by the principal in favour of the
agents/attorney is unconditional, duly stamped and is in force as on date. It is

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 mandatory that the POA executed overseas should be done only in the office of the
Indian Embassies abroad and should be got attested by the Office of the Indian
Embassy and those executed in India should be done only in the office of
the Registrar of Assurances. The POA executed in the presence of Notary
Public/magistrate, either in India or abroad should not be entertained.

4. The attorney / agent should also be a major and of sound mind. Further, the person
appointed as “Agent” in the POA should not be a third party but they should be
closely related to the Principal. Closely related category include only husband, wife,
son, daughter, father, mother, father-in-law, mother-in-law, brother, sister,
daughter-in-law, son-in-law, brother-in-law and sister-in-law of the Principal. Efforts
should also be taken to include the “Agents/POA holders”as guarantors, in their
personal capacity, thereby involving them at a future date for recovery and also for
their commitment due to any cancellation of the Power of Attorney in the intervening
period.

5. On receipt of duly executed Power of Attorney in India the same is required to be

adequately stamped within 90 days from the date of receipt in India and same
should be got registered with the Registrar of Assurances to make it enforceable till
such time its revocation.

6. Power of Attorney attracts stamp duty under the provisions of the Stamp Act
applicable to the state, where it is to be acted upon.

7. Power of attorney granted by one person, who has a joint account with another
authorizing a third party to operate upon the joint account, should not be acted
upon. All the parties to a joint account must join in executing such a power of
attorney.

8. An attorney cannot employ his principal‟s property for his own use, Branches should
not, therefore, accept without enquiry, cheques signed by a person as attorney for
another party for credit of his personal account.

9. The details of power of attorney so received should be noted in a register e.g. date
of receipt, date of power of attorney, name of the client, nature of account and
name of the attorney. Each entry in the register should be authenticated by the
officer, who has verified the copies. Such registration of Power of Attorney in the
books of the branch must be initialed by the Branch Manager / Joint Manager, who
will be responsible for its correctness.

10. The documents should state full names of the parties. Initials/ short names or
abbreviated names of the parties should not be written.

11. The Power of Attorney holder after fulfilling following conditions may be
allowed to execute the documents.

i. The Regional Head not below the rank of Deputy General Managers may
authorize the branches for execution of the documents through POA, only in case
of NRE customers. The same is subject to verification of the Power of Attorney by
Our Bank‟s Legal Officer and with their clear opinion on acceptability of the
executed Power of Attorney.

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 ii. If the Regional authority is below the rank of Deputy General Manager, Zonal
Authority may exam the same and conveys the authority to get the documents
executed by the Attorney.
iii. The concerned branch / office of the Bank to obtain letter of confirmation from
the Donor of Power of Attorney that the power given by him / her is valid and
subsisting as on date and not revoked.
iv. Only on receipt of such authority, the branch can allow to get the documents
executed by the Power of Attorney holder.
v. The concerned branch to inform by a confirmatory letter to the Donor about the
documents having been executed by the Attorney immediately on execution.
vi. A single letter of confirmation to be obtained from the Principal instead of the
Principal signing all the documents executed by the POA holder. The draft copy of
the letter of confirmation is given inAnnexure-23, which is to be obtained from
the Principal confirming that the documents executed by his Attorney are binding
upon him and thus valid, subsisting and enforceable. This should be got executed
with due stamping as an agreement and which will suffice the legal requirements
of ratification of the action of POA holder by the donor. However, the same has to
be got executed during the immediate future available opportunity and for all
practical purposes where LAD is to be obtained, the due date of LAD will be based
only on the date of original execution of the documents by the POA holder.
In the interest of the Bank, branches to verify the identity and credentials of
Power of Attorney holder before proceeding to consider the loan on the basis of
POA. The branches may also explore the possibility of obtaining personal
guarantee of POA holder.
19. Equated Monthly Installment (EMI) Plan:
i. The recovery under EMI provides for repayment of dues uniformly throughout the
loan period. The following accounting procedure may be followed in this regard:
 At the time of granting loan, EMI should be calculated with EMI Calculator or may
be calculated from Bank‟s website and advised to borrower.
 EMI amount can also be calculated through the menu option „LAMOD‟ in Finacle.
 The EMI amount should be in figures rounded off to next higher rupee.
ii. The monthly recovery under EMI shall be credited in full to the loan account. At the
time of monthly interest application, interest is to be calculated on daily products
basis and debited to the loan account. In effect, this would result in application of
interest on daily product basis at monthly rests.
iii. As per the guidelines conveyed vide Circular No.BCC:BR:108/401 dated 02.09.2016,
Branches have to adopt prefixed specific dates - 08th or 16th or 25th as EMI dates for all
Retail Loans, out of which the preferable date convenient to the borrower, considering
the salary date/ monthly remittance dates etc. In any case, even in case of loans with
moratorium also, the dates - principal demand date/ interest demand date/ first
repayment start date should be uniform for a particular account and should be 08th or
16th or 25th. The above guidelines are applicable to all the fresh sanctions of Retail
Loans w.e.f. 10.09.2016.
iv. Issuance of interest certificate:
For the purpose of income tax, branches may issue certificate to the borrower for
interest debited during the year to the Home Loan account, being interest actually
accrued on loan account. Existing income tax rules are also to be complied with in
this regard.

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 20. Resetting of EMIs / Extension of Repayment Period on revision of Interest
rate.

i. Change in rate of interest will be effected centrally by our data Centre without re-setting
EMIs. Period of loan will be adjusted as per increase/decrease in rate of interest, keeping
EMIs at fixed level till full repayment subjected to the condition that total/extended tenure
of Home Loan does not go beyond the maximum period permissible under Home Loans as
per guidelines.
ii. However, in case any borrower approaches his Branch for change in EMI as per revised
rate of interest, branches are required to make changes at their end in such accounts.
iii. The Insurance cover available under Bancassurance i.e. Home Loan Suraksha Beema
Yojana and under Life Insurance cover obtained from any of the insurance provider shall
remain in force only upto original tenure of loan and not for the extended period, if any.
iv. Applicable for Loans Sanctioned on or after 01.04.2016:
- Annual resetting of MCLR as per guidelines on MCLR will be done centrally by
Data Centre for Home Loans sanctioned on or after 01.04.2016 or Loans
subsequently opted for MCLR system.
- However, for Home Loans sanctioned on or after 01.04.2016, as per the
guidelines of risk based pricing linked to CIBIL score of the borrower, at the time
of review of the account, Rate of Interest to be revised based on the CIBIL score
of the borrower and the applicable spread over One year MCLR + Strategic
Premium in force on due date of review is to be effected in the Finacle System
manually. I.e. Branch to generate CIBIL report and the applicable spread based
on Bureau Score has to fed in „Account preference Interest Debit‟ in Finacle
System.

21. Home Loans at Fixed Rate Option- Application of re-set clause.

Prior to introduction of Base Rate System, Home Loans were available at Fixed Interest
Rate Option as well as Floating Interest Rate options.

Bank has introduced Base Rate system w.e.f. 01.07.2010 in place of Benchmark Prime
Lending Rate (BPLR) system.

As per the guidelines of Base Rate structure, conveyed vide Circular No. BCC: BR: 102/178
dated 30.06.2010:

 All the existing Loans/facilities based on BPLR system may run with the existing
interest rate structure till their maturity/review.
 Fixed interest rate option on all the Retail Loan products stands withdrawn with
immediate effect from 01.07.2010 and henceforth no loan shall be granted at fixed
rate option. However, existing facilities under fixed rate option shall continue till their
reset clause/ maturity whichever is earlier.

 For Home Loans sanctioned upto 15.08.2007 at Fixed Interest Rate option the rate
prevailing on the date of sanction remains applicable through entire tenure of such loans.
 Home Loans sanctioned at Fixed Interest Rate option on or after 16.08.2007 and till
16.11.2008 are subjected to re-setting of interest after completion of every -5- years
from date of first disbursement.
 Home Loans sanctioned at Fixed Interest Rate option on or after 17.11.2008 and till
30.06.2010 are subjected to re-setting of interest after completion of every -3- years
from date of first disbursement.

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 Fixed Interest Rate option stands withdrawn w.e.f. 01.07.2010 and no loan shall be
granted at fixed rate option from 01.07.2010. However, Loans sanctioned prior to
01.07.2010 under fixed rate option shall continue till their reset clause/maturity whichever
is earlier.
 However, for Home Loans sanctioned under Special Home Loan Package (LA127) effective
from 16.12.2008 to 31.12.2009 under fixed rate option, fixed rate of interest will
continue upto the reset period of 5 years.
 The revised rate on resetting will be determined in such a way that spread over/below
BPLR remains the same on the date of reset if compared with that on date of original
sanction.

Since Home Loans sanctioned under Fixed Interest Rate option with reset period, the
reset period falls due only after 01.07.2010 in all the cases, the revised rate on resetting
will be determined in such a way that BPLR as on resetting date +/- spread as per original
sanction will be the effective rate of interest from date of reset and requires to be linked
to Base Rate from date of reset.

(Please note that Home Loan Accounts where interest flag has been pegged as „Y‟ in
Finacle indicates that the account is in fixed rate of interest)

Further, in terms of Circular No.BCC:BR:105/219 dated 01.06.2013, the applicable rate of

interest w.e.f. 01.06.2013 in all the existing Home Loan accounts under floating rate
should be Base Rate.

In view of the above guidelines, to avoid irregularities in the applicable rate of interest in
existing Home Loans, different cases of Home Loans under fixed rate options are given as
under:

Case-1: Home Loan accounts sanctioned under fixed rate option from 16.08.2007 –
16.11.2008

- As per guidelines resetting of ROI is required after 5 years of sanction. The revised rate
(which is to be linked with Base Rate) will be determined in such a way so that the spread
over/below BPLR (prevailing on the date of reset) remains the same on date of reset if
compared with that on the date of original sanction. Further, applicable rate of interest
w.e.f. 01.06.2013 to be Base Rate.

Eg: Home Loan sanctioned under fixed rate option on 16.08.2007 at 12.25% (i.e. fixed
at 1.00% below BPLR, BPLR being 13.25% as on 16.08.2007)

Say Bank‟s BPLR changes to 14.75% as on date of reset (16.08.2012), then as per reset
clause, the rate of interest in the Home Loan account would be recomputed and revised
so that the original negative spread over BPLR remains unchanged as on date of reset
(16.08.2012).

Accordingly, new rate would be Bank‟s BPLR minus 1.00% i.e., 13.75% (14.75%-1) from
date of resetting.

Say Base rate on the date of reset (16.08.2012) is 10.50%. Hence, the effective rate to be
given in finacle would be Base Rate + 3.25% under floating rate option (i.e., with interest
pegging flag option „N‟).

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 Further, applicable rate of interest w.e.f. 01.06.2013 is to be made Base Rate.

Case-2: Home Loan accounts sanctioned under fixed rate option from 17.11.2008–
30.06.2010

- As per guidelines resetting of ROI is required after 3 years of sanction. The revised rate
(which is to be linked with Base Rate) will be determined in such a way so that the spread
over/below BPLR (prevailing on the date of reset) remains the same on date of reset if
compared with that on the date of original sanction. Further, applicable rate of interest
w.e.f. 01.06.2013 to be Base Rate.

Case-3: Home Loan accounts under the scheme code LA127 (i.e., Special Home Loan
scheme) sanctioned under fixed rate option from 16.12.2008 – 31.12.2009

- As per guidelines resetting of ROI is required after 5 years of sanction. In all these cases
of Home Loans sanctioned under the Special Home Loan scheme, reset period falls due
only after 01.06.2013; the applicable rate from the date of reset will be at Base Rate
(floating).

Case-4: Home Loan accounts under floating rate option: W.e.f. 01.06.2013 applicable
ROI in all Home Loans under floating rate option should be base rate.

(Subsequent guidelines on MCLR system w.e.f. 01.04.2016 are also to be considered)

22. Conversion from Fixed Interest Rate to Floating Interest Rate Option:

For Home Loans sanctioned upto 15.08.2007 at Fixed Interest Rate option the rate
prevailing on the date of sanction remains applicable through entire tenure of such loans.

Requests from customers in such cases may be considered for allowing conversion from
fixed interest rate to floating interest rate option by Branch Manager with prospective
effect subject to the following:

 if the account is regular

 As one time offer from the Bank.
 Upfront payment of charges on outstanding balance @ 0.5% for every year for the
residual period of the loan maximum 2% of the amount outstanding on the date of
allowing conversion.
 Borrower‟s request should be in writing and acceptance of borrower and guarantor be
obtained on the copy of the branch letter conveying the revised terms (this should be
kept with the documents).

23. Rate of Interest based on tenure of the Loan :

W.e.f. 01.06.2013 rate of interest on Home Loans are delinked with tenure of the Loan.

24. Disbursement of Loan:

i. In case of outright purchase of house / flat ready for possession – Disbursement be

made in one installment directly to the seller of the house / flat.

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 ii. In case of construction of house / flat – In 3 to 4 stages after physical verification,
depending on the progress of construction. Payment can be made either to the
builder directly or to the borrower subject to verification of bills/money
receipts/invoices etc. or certificate issued by approved Valuer / architect certifying
the progress of the work and the estimated expenditure having incurred there for, as
the case may be. During the course of construction at least once valuation
report from Bank‟s approved must be obtained.
iii. To safeguard banks‟ interest and as a preventive vigilance measure branches should
adhere to the guidelines given hereunder:

 Upon receipt of demand letter, the branch should obtain in writing the name of
the Bank and Branch from the builder / vendor for the purpose of issuing Banker
Cheque / Demand Draft pertaining to the disbursement.
 To obtain request letter from borrower for making the payment to the builder.
 To issue Demand Draft / Bankers Cheque in favour of Bank / Branch, A/c-No.,
Name of Builders / Vendors / Suppliers along with a letter addressed to the
vendor.
 Not to hand over the Demand Draft / Bankers Cheque towards disbursement to
the borrower.

iv. In case of extension – Payment can be made directly to the borrower after
verification of bills/money receipts etc.

 Veracity of demand letter issued by the builder should be independently verified from
the builder.
 Every disbursement, wherever disbursement is to be made in stages, should be
backed by site / spot inspection and relative inspection report should be kept on
record.
 Receipt for Banker‟s Cheque / Demand Draft and letter for confirmation of Bank‟s
Lien in builders book must be obtained & kept on record.
 Post-sanction inspection after final disbursement should be carried out to ensure that
borrower has taken possession of the house / flat (in case of Home loan), besides
verification of end use of funds.

25. Unified Processing Charges:

Bank has revised the unified processing charges and modified method of recovering
processing charges w.e.f. 01.07.2016 as under:

1. The unified processing charges will include:

 Processing Charges
 Documentation charges
 Document Verification/ vetting charges
 Pre- sanction Inspection (Contact Point Verification-CPV) charges
 One time post inspection charges
 Advocate charges for legal opinion
 Valuer charges for valuation
 Bureau report charges
 CERSAI charges
 ITR Verification charges

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2. For Home Loans, certain minimum amount of processing charges will be recovered
upfront. Balance amount of processing charges will be recovered at the time of conveying
sanction of the loan. (In case of securities other than immovable properties no upfront
charges)

3. Further, stamp duty payable on various loan documents/ agreements as well as for
equitable mortgage shall be recovered separately on actual basis.

The revised unified processing charges for Home Loans w.e.f. 01.07.2016 is as under:

Unified Processing Charges Modified Charges w.e.f. 01.07.2016

(prior to 01.07.2016) (excluding Service Tax)
Loan up to Rs.25 Lacs : 0.25% Upto Rs.50 Lacs: 0.50% of Loan amount:
Minimum - Rs.1000/- Minimum: Rs.7,500/- (Upfront)
Maximum: Rs.12,500/-

Above Rs.25 Lacs upto Rs.75 Lacs: 0.25% Above Rs.50 Lacs: 0.25% of Loan
Maximum- Rs. 10,000/- amount:
Minimum : Rs.7,500/- (upfront)
Above Rs.75 Lacs : 0.25% Maximum: Rs.20,000/-
Maximum- Rs. 20,000/-
For Staff members: For staff members:
Processing charges: Upto Rs.2 Lacs: Actual Charges for Advocate / Valuers /
Rs.200/- ; CERSAI / ITR verification (if any) only to
Above Rs.2Lacs to Rs.5/- Lacs: Rs.100/- per be recovered.
Lac or part thereof.;
Above: Rs. 5 Lacs: Rs.750/-
Documentation charges:
Upto Rs. 25000/- : Nil;
Above Rs.25,000/- upto Rs.2 Lacs: 350/-
Above Rs. 2 Lacs: Rs.1000/-
Advocate/valuers charges: Actual charges to
be recovered.

 „Mortgage Creation Charges‟ as conveyed vide Circular No.HO:BR: 106/51dated

01.03. 2014 and issued by Operations and Services Dept. and subsequent Circular
No.BCC: BR:107/132 dated 23.03.2015 issued by Large Corporate Banking Dept will
NOT be applicable to all types of Housing Loans including Home Improvement Loan
and Additional Assured Advance (AAA).

 No charges on Review of accounts.

26. Insurance of the House Property & Personal Accident Insurance of the
borrower:

The House / Flat mortgaged with the Bank is to be insured. For Home Loans sanctioned
upto 09.09.2012, Bank has a Scheme for free insurance cover in the name of “Baroda
Home Loan Suraksha Bima Yojana” for house property mortgaged with the Bank and
also accidental death insurance cover with the National Insurance Company limited, who is
our partner of Bancassurance business. Under the Scheme, we were providing free
property insurance cover along with free personal accidental death insurance cover in all
our Home Loan Accounts under tie-up arrangement with National Insurance Company
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 Limited (NICL). As per the scheme, insurance premium was fully borne by the Bank to
cover Property Insurance and Personal Accident Cover in respect of principal borrower.
Details of the Scheme is given in Annexure-3

However, this facility of providing free property insurance on Baroda Home Loans under
„Baroda Home Loan Suraksha Bima Yojana‟ has been withdrawn w.e.f. 10.09.2012,
but facility of providing free personal accidental insurance will continue as per revised
scheme.

The revised Scheme for obtaining personal accidental insurance and property insurance is
given in Annexure- 2

27. Life Insurance covers to Home Loan Borrowers:

Group Credit Life Insurance Cover for our Home Loan Borrowers is available under tie-up
arrangement with M/s IndiaFirst Life Insurance Co and M/s Kotak Life Insurance Co. The
Insurance Cover is optional and at the cost of borrower. Details of the Scheme are given
in Annexure-1.

28. Prepayment Charges:

No prepayment charges shall be levied on foreclosure of Home Loans irrespective of the
nature of source of funds i.e., whether the loan is repaid from the own sources of
borrower or by way of takeover by other banks/HFCs or otherwise w.e.f. 15.12.2011.

29. Inspection of House Property:

For existing customers, pre-sanction inspection visit for residence is not stipulated, if
KYC has been done by the Branch in the last 2 years. Further, the customer is deemed to
be KYC complied if the latest existing address as per Bank‟s record matches with the
Bureau Record/Report. However, employment / business verification and inspection of
property to be mortgaged to be carried out

i) Pre-sanction inspection is to be carried out: (for New customers and Non KYC
complied accounts)

 To ascertain the correctness of various facts and data submitted by an applicant.

 To verify the credentials and antecedents of the applicant.
 To verify the house/flat proposed to be purchased /constructed with the bank finance
and its boundaries vis-a-vis given in Sale/Lease Deed.
 To do careful analysis of information collected during pre-sanction inspection to arrive
at a credit decision.
 In short the above activities form the due diligence process in appraising the
applications for loans.
 Detailed Pre-sanction inspection including visit to the place of residence, work /
business place as well as property to be mortgaged, must be carried out preferably
without giving prior information to the applicant. Pre-sanction inspection report should
be prepared in the format prescribed (Annexure- 19) and kept on record.
 During Pre-sanction inspection, the branch official must cross verify the information
submitted by the applicant with respect to his identity, residence, employment /
business and property to be purchased.
 Detailed guidelines on preventive vigilance and due diligence is as per Annexure–4.
 No separate charge to be levied as pre sanction is part of processing.

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ii) Post –Sanction Activities:

 To verify the end use of funds after each disbursement of the loan by physically
verifying the assets created out of bank finance,
 After completion of the house/dwelling unit, inspection be carried out at least once in 3
years if the account is regular. If this condition is not fulfilled, regular inspections are
to be carried out as per administrative guidelines for inspection of other advances
accounts.
 For quick and immediate detection of misutilisation of bank's loan, if any and to
immediately take corrective steps.
 Inspection reports for each inspection are to be kept on record.
 Rs.100/- plus service tax per inspection may be recovered for carrying out
periodical post sanction inspection (asset verification).
(Formats for post sanction (asset verification) report enclosed as Annexure – 20.

30. Home Loan to Staff Members availing under normal Public Scheme:

Separate scheme of „Home Loan to Staff under Public Scheme‟ has been discontinued
w.e.f. 01.04.2016 and the said separate scheme guidelines have been realigned with
general guidelines of Home Loan / Home Improvement Loan meant for public w.e.f.
01.04.2016. As such, confirmed staff members, including part time employees can avail
Home Loan meant for public.

However, the rate of interest is not linked to CIBIL score. i.e., applicable rate of interest
will be „1 year MCLR + Strategic Premium‟.

Deviations in maximum limit and in other parameters, if any, to be considered as

applicable to normal Home Loan scheme. Sanctioning Authority and Reporting of sanction
will be as per existing guidelines for sanctioning of Home Loans to Staff.

31. Discretionary Lending Powers /Sanctioning Authority:

i. For Public:
Within general discretionary lending powers of the Branch Heads /SMS Heads/
Regional Manager Credit Committee (RMCC) as per their grade / scale

ii. For Staff/ Staff Related (Home Loans under Public scheme):

Discretionary Lending Powers:

Advance to staff / staff related may be considered as per the general lending powers
meant for the public schemes, subject to obtaining vigilance clearance from Regional
/ Zonal Office before disbursement.

Sanctioning Authority:

 Staff /Relatives of Officers up to Scale III:

Home Loan proposals (including Home Improvement & AAA) of staff/ Officers upto
Scale-III and relatives of staff member‟s upto Scale-III shall be considered by Branch
Heads / SMS Heads / CPC Heads / RMCC of the respective Branches/offices.

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  Staff/ Relatives of Senior Officers Scale IV and above:

Zonal Office Credit Committee (ZOCC) - Full powers.

Home Loan proposals (including Home Improvement & AAA) of staff in Senior
Management (i.e., Scale IV and above) and relatives of staff in Senior Management
Cadre shall be considered by ZOCC of the respective Branches/offices upto their DLP.

- For Executives in Scale-VII in Corporate Office & Treasury, sanctioning authority will
be Executive Director, being next higher level.
- For other Executives in Scale – VII, processing will be done by concerned SMS and
then submitted to Retail Banking Department, BCC to put upto Executive Director for
sanction.

 Advances to Staff/ Officers, against whom disciplinary action is either pending or

contemplated, shall be considered/ sanctioned by the General Manager (HRM),
Corporate Office.
 Vigilance clearance is required only if the Staff member is an applicant / co-applicant
to the Loan.
 Any credit decision in respect of officers of Senior Management Grade and their
relatives is to be immediately advised to Retail Banking Department, Baroda
Corporate Center for reporting to MCB.
 Since, Home Loans to staff availed under normal Public scheme are not classified
under Staff Loans, guidelines conveyed vide Circular No.BCC:BR:104/178 dated
22ndMay 2012 on setting up of Credit Committees at various levels and Circular
No.BCC:BR:104/271 dated 30th July,2012 on modifications will be applicable.
Accordingly, in case of Home Loans to Staff availed under normal public scheme, if
sanctioned at Regional/ Zonal office level, same to be considered by Credit
Committees at Regional / Zonal office level.

32. Free Credit Card:

Free Credit Card (BOBCARD - complementary for first year) will be issued to Home Loan
borrowers with loan limit above Rs.2/- lacs. Type of card will depend on loan limit as
under:
Loan limit Type of BOBCARD
Up to Rs. 2/- lacs No card
Above Rs.2/- lacs - Up to Rs.5/- lacs Silver
Above Rs.5/- lacs Up to Rs.10/- lacs Exclusive
Above Rs.10/-lacs Gold

(Detailed guidelines for issuing Credit Card given in Annexure - 8

33. Baroda Additional Assured Advance (AAA):

Baroda Additional Assured Advance (AAA) is an Additional Loan facility extended to Home
Loan Borrowers for any purpose except speculative/illegal purpose. The AAA facility is
granted against the security of extension of Mortgage of House Property already
mortgaged to secure Home Loans and can be availed to a maximum of -5- times during
the entire tenure of Home Loan.

Detailed product features are given separately.

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34. Withdrawal of concession to Group Home Loan Proposals and employees of
preferred organizations.

The concession of 25 bps in interest rate on Home Loan offered to employee borrowers of
preferred organizations and to group of borrowers has been withdrawn w.e.f. 11.08.2010.

35. Powers of Deviation & Deviation Charges:

Financial/non-Financial Deviations/Concessions in respect of scheme parameters/

guidelines may be considered as per Annexure- 9. (In terms of Circular No.BCC: BR:
108/53 dated 29.01.2016)

Deviation charges:

Rs. 1,500/- per deviation with maximum of Rs.5, 000/- + ST.

 Deviation charges are not applicable to proposals for concessions in rate of interest
 Deviation charges are NOT applicable for the deviations granted to group
proposals or deviation allowed for Region specific schemes.
 Full charges for all the deviations are to be recovered upfront at the time of
request of the borrower and in case the deviations are not considered,
proportionate 50% amount of deviation charges to be refunded to the
borrower

e.g. if three deviations are requested in a home loan proposal, Rs. 4500/- to be
recovered at the time of request, out of which, if two of the deviations are not
considered, proportionate Rs 1500/- i.e. 50% of Rs. 3000/- shall be refunded
to the borrower
 Complete record of deviation charges recovered and charges refunded, if any,
has to be maintained and be made available to the authorities for inspection
 Deviation charges recovered from the borrowers are to be credited in P/L
Commission account

36. Approval of Builder/Developer/Promoter/ Projects.

Branches in cities and large towns will recommend the names of reputed/credible
builders/developers/ promoters as also their projects to their respective Regional
Authorities, who would be according approval to those conforming to the criteria.
However, in metro cities, since some of the builders/developers may be common for the
entire city across all regions/branches, the approval may be accorded by the respective
zonal authorities.

Now Bank has decided to accord the status of approved Builder and their Housing Project
as approved for sanctioning of Home Loans for purchase of flats, while granting credit
facilities to such Builders for Housing Projects

Detailed guidelines are given in Annexure-7 (a)

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 37. Implementation of the orders of Delhi High Court.

Branches are advised to ensure compliance of the orders of Hon‟ble High Court of Delhi,
during the hearing of writ petition in connection with the order of Supreme Court of India
to seal all unauthorized business units set up in residential area in Municipal Corporation of
Delhi are given in Annexure -16

38. Payment of incentives to staff members for Home Loan leads (since
discontinued):

Bank had introduced the Scheme of Payment of Incentive to Staff members for Home
Loan Leads for driving growth in Retail Lending. The Scheme was initially launched up to
30.09.2013 vide Cir. No.BCC: BR: 105/246 dated 14.06.2013. Further the scheme was
extended up to 31.03.2015 with modifications in amount of incentives.

The same has been continued w.e.f. 01.04.2015 up to 31.03.2016 with modifications
on amount of incentives and method of submission of Leads. The scheme has been
DISCONTINUED w.e.f. 01.04.2016.

Amount of Incentives under the scheme were as under:

Amount of
Amount of Incentives
incentives w.e.f. 01.04.2015 to
Parameter
w.e.f. 01.04.14 to 31.03.16
31.03.15 (Discontinued w.e.f.
01.04.2016)
Loan application
Rs.2,500/- per Rs.3,000/- per
above Rs.8 Lacs up
Rural application application
to Rs.25 Lacs
Branches
Loan application Rs.5,000/- per Rs.6,000/- per
above Rs.25 Lacs application application
Loan application
Rs.2,500/- per Rs.3,000/- per
Semi above Rs.8 Lacs up
application application
Urban to Rs.35 Lacs
Branches Loan application Rs.5,000/- per Rs.6,000/- per
above Rs.35 Lacs application application
Loan application
Rs.2,500/- per Rs.3,000/- per
Urban & above Rs.10 Lacs up
application application
Metro to Rs.50 Lacs
Branches Loan application Rs.5,000/- per Rs.6,000/- per
above Rs.50 Lacs application application

Detailed guidelines are given in Annexure-14 for reference.

39. Payment of service charges to Approved Builders against the Home Loan leads
directed by them and converted into real business.

Builders will be paid service charges, which should not exceed 0.25% of the Home loan
amount for every case directed to the Bank or Rs.50, 000/- whichever is lower subject to
sanction and disbursement of Home Loan by the Bank.

Scheme is effective from 17.06.2013 detailed guidelines are given in Annexure-15.

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40. Priority Sector Classification:

(i) Loans to individuals up to Rs.28 lakh in metropolitan centers (with population of ten
lakh and above) and loans up to Rs.20 lakh in other centers for purchase/construction
of a dwelling unit per family provided the overall cost of the dwelling unit in the
metropolitan centres and other centers should not exceed Rs.35 lakh and Rs.25 lakh
respectively. The housing loans to banks‟ own employees will be excluded. As housing
loans which are backed by long term bonds are exempted from ANBC, banks should
either include such housing loans to individuals up to Rs.28 lakh in metropolitan
centers and Rs.20 lakh in other centers under priority sector or take benefit of
exemption from ANBC, but not both.
(ii) Loans for repairs to damaged dwelling units of families up to Rs.5 lakh in metropolitan
centers and up to Rs.2 lakh in other centers.
(iii) Bank loans to any governmental agency for construction of dwelling units or for slum
clearance and rehabilitation of slum dwellers subject to a ceiling of Rs.10 lakh per
dwelling unit.
(iv) The loans sanctioned by banks for housing projects exclusively for the purpose of
construction of houses for economically weaker sections and low income groups, the
total cost of which does not exceed Rs.10 lakh per dwelling unit. For the purpose of
identifying the economically weaker sections and low income groups, the family
income limit of Rs.2 lakh per annum, irrespective of the location, is prescribed.
(v) Bank loans to Housing Finance Companies (HFCs), approved by NHB for their
refinance, for on-lending for the purpose of purchase/construction/reconstruction of
individual dwelling units or for slum clearance and rehabilitation of slum dwellers,
subject to an aggregate loan limit of Rs.10 lakh per borrower.

The eligibility under priority sector loans to HFCs is restricted to five percent of the
individual bank‟s total priority sector lending, on an ongoing basis. The maturity of
bank loans should be co-terminus with average maturity of loans extended by HFCs.
Banks should maintain necessary borrower-wise details of the underlying portfolio.
(vi) Outstanding deposits with NHB on account of priority sector shortfall.

41. Baroda Home Loan Suraksha Personal Loan –Personal Loan scheme for Home
Loan borrowers for funding Life insurance premium of Group Credit Life
Insurance

As per existing arrangements, Group Credit Life Insurance covers for our Home Loan
borrowers are available under tie-up arrangement with M/s. India First Life Insurance
Company Ltd. & M/s. Kotak Mahindra Old Mutual Life Insurance Company Ltd. The
insurance cover is optional and at the cost of borrower.

As per RBI guidelines, which is conveyed vide our Circular No.BCC:BR:105/386 dated
03.09.2013, Branches should not include stamp duty, registration charges, other
documentation charges and other expenses like Life Insurance premium etc. in the cost of
house property to calculate margin/LTV. As such, presently, the premium amount can be
financed as a part of Home Loan only after reducing the Home Loan component to the
extent of premium amount for Group Credit Life Insurance. Therefore, there is a need felt
to introduce a personal Loan scheme for Home Loan borrowers for funding life insurance
premium of Group Credit Life Insurance to safeguard the interest of the borrower/s as well
as the Bank.

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 Accordingly, Bank has launched a new Personal Loan scheme exclusively for Home Loan
borrowers for funding life insurance premium of Group Credit Life Insurance cover for home
loan.

The features of „Baroda Home Loan Suraksha Personal Loan‟ are given separately

42. Sourcing of Home Loan applications:

a. Empanelment of retired staff of our Bank as Marketing Consultants.

b. Empanelment of individuals as Home Loan Counselors.

With a view to improve our market presence in competition with the Direct Sales Agents
(DSAs) by Private Sector Banks/HFCs and Marketing Consultants /Home Loan Counselors
of major Public Sector Banks, it has been decided to empanel (i) Our retired Staff as
Marketing Consultants (MCs) and (ii) Individuals as Home Loan Counselors (HLCs) for
sourcing Home Loan proposals at Specialised Mortgage Stores and Branches.

Retired Officers of our Bank shall be engaged as Marketing Consultants (MCs), without
prejudice to their pension. Retired employees of the clerical cadre may also consider at
par with retired officers by Regional Authority. The engagement shall be up to the
maximum age of 70 years subject to other conditions regarding renewal of contract. The
officers /employees who were dismissed /removed from the Bank‟s service as a
disciplinary measure shall not be eligible.

Please note that with the introduction of Empanelment of Direct Selling Agents (DSAs) –
Individuals & Non – Individuals policy the existing Marketing Consultants (MCs) and Home
Loan Counselors (HLCs) will be renamed as „Direct Selling Agents (DSAs) and will
automatically come under the purview of new DSA policy.

43. Sourcing of Home Loan applications- Empanelment of Direct Selling Agents

(DSAs)

To improve our competitive edge in the market and to source quality big ticket Home
Loan applications, Bank has decided to empanel and utilize the services of Direct Selling
Agents (DSAs) – Individuals as well as non-Individuals for sourcing Home loan Proposals.

The existing Marketing Consultants (MCs) and Home Loan Counselors (HLCs) will be
renamed as „Direct Selling Agents (DSAs) and will automatically come under the purview
of this policy.

The detailed policy guidelines in respect of Empanelment of Direct Selling Agents (DSAs)
and Digital DSAs, as issued by Retail Banking Department from time to time have to be
adhered.

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 BARODA HOME LOAN ADVANTAGE
Product features.

Facility: Home Loan linked with Savings Bank Account.

 The Home Loan sanctioned will be linked with Saving Bank Account.
 The rate of interest applicable on this SB account will be Zero.
 Under the scheme, the borrower shall have the option to deposit all his savings in the
linked SB account to avail maximum benefit of interest in the Home Loan account.
 Any credit available in the linked SB a/c at the end of the day will be counted for credit
in linked Home Loan account. Consequently, the borrower will get the benefit of
interest amount reduction in the Home Loan account to the extent of daily outstanding
credit balance in the Savings Bank account.
 The branch can verify the interest debited in Home Loan account by taking interest
product sheet anytime after interest application / at the end of the month.
 The borrower will remit the Equated Monthly Installments (EMIs) into the linked SB
account.
 Recovery of EMI will be made by way of auto recovery from linked SB account only.

Facilities available for linked SB account:

Balance in SB account is available for drawal on demand. Hence, borrower is eligible

for Cheque book facility, ATM cum debit card, internet banking facility, mobile banking
facility etc. as per normal Savings Bank rules. Charges for cheque book, ATM card etc
will be as applicable in Savings Bank accounts.

Conversion of Existing Home Loan to Baroda Home Loan Advantage Scheme:

 New Savings Bank account will be opened in separate scheme code (even if the
borrower is maintaining another SB account as per normal scheme) and will be linked
to existing Home Loan account.
 The Home Loan account may continue in the existing scheme code itself. In such a
case, branch needs to link the new SB account to existing home loan account.
 A suitable request letter to be obtained from the borrower/s to convert existing Home
Loan account to Baroda Home Loan Advantage.
 Agreement for „Baroda Home Loan Advantage‟- for linking Savings Bank account as
per Annexure –30 to be obtained.
 A unified processing charge of Rs.1000/- + ST will be levied on conversion of existing
Home Loan to the new Baroda Home Loan Advantage.
 This conversion facility for existing borrowers is allowed w.e.f. 01.04.2015.

Rate of Interest:
Loan amount up to Rs.75 Lacs : ROI as applicable to regular Home Loan
Above Rs.75 Lacs : 0.25% over the ROI as applicable to regular Home
Loan.

Security Documents:
 Term Loan Agreement for Home Loan (LDOC – 23A) as in case of Regular Home Loan
 Agreement for „Baroda Home Loan Advantage‟- for linking Savings Bank account – As
per Annexure – 30.
 Other usual documents as in case of regular Home Loan.

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Scheme Codes:

The following new scheme codes are to be used for Baroda Home Loan Advantage accounts
and linked SB accounts.
Loan Scheme Details Linked SB Scheme Details
S. Target
Scheme Scheme Scheme
No Group Scheme Description
Code Description Code
BARODA RESIDENT
HOME LOAN LINKED SB-
1 Residents LA183 HOME LOAN SB152
Residents
ADVANTAGE
SB252 HOME LOAN LINKED SB-
Non BARODA NRI HOME NRE
2 LA184
Residents LOAN ADVANTAGE HOME LOAN LINKED SB-
SB352
NRO

 Account opening in LA183 scheme will be permitted for resident customers only and
not for NRI/PIO customers.
 Branches to ensure that SB account is properly linked with the Home Loan
account in Finacle.
 After opening the accounts the Branch may check in the accounts in ACIOption „+‟
(plus) for the status of linking with the operative account.
 If the status is shown as „D‟- delinked, the account is to be linked through ACM 
Option „+‟ (plus). The Branch should ensure the Linked status in the Home Loan
account.

Opening of „Baroda Home Loan Advantage‟ account and Linked SB accounts in

Finacle:
Job card for opening of „Baroda Home Loan Advantage‟ account and Linked SB accounts in
Finacle is attached as per Annexure - 31

Unified Processing Charges: Same as Baroda Home Loan

Other guidelines
 The actual interest debited in the Home Loan account is to be considered for issuance
of interest certificate for the purpose of income tax. The principal component for
income tax purpose also to be calculated on the basis of actual amount credited in the
Home Loan account (as per extant guidelines).
 All other guidelines/ product features of regular Home Loan scheme including
guidelines for Risk based pricing linked to CIBIL score of the borrower will be
applicable.
 The balance available in the linked savings bank account will NOT be counted as CASA
Deposit.
 Therefore, the balance of Home Loan account and linked savings SB account will be
netted for reporting purpose.

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 BARODA CRE HOME LOAN

As per RBI guidelines, Bank‟s exposure to third dwelling unit onwards to an individual will be
treated as CRE (Commercial Real Estate) exposure. CRE exposure to the extent secured by
Commercial Real Estate attracts risk weight of 100%. (Risk weight for regular Home Loan is –
Up to Rs.75 Lacs- 50%; above Rs.75 Lacs-75%). Provision on standard CRE Home Loans to
be made at 1% instead of 0.40% for regular Home Loans

In terms of above guidelines, Home Loan for third dwelling units onwards to an individual is
not being considered under our regular Home Loan scheme of Retail credit.

Since we are getting request from SMSs/operating units to consider such loans on the basis of
demand from prospective customers, bank has decided to launch a new scheme „Baroda CRE
Home Loan‟. If an individual owns two or more houses, singly or jointly, then the exposure for
the third house onwards/ purchase of plot is to be considered under „Baroda CRE Home Loan‟
Scheme.

Baroda CRE Home Loans are to be sanctioned by Specialised Mortgage Stores (SMSs) only. In
case the branch considering the proposal is not attached to any SMS, the same should be
referred to Regional Office for sanctioning the Loan by Regional Authority. In such case,
subsequent deviations if any, in any of the parameters, powers of which is vested with
Regional Authority as per regular Home Loan scheme, are to be referred to Zonal Authority
for its approval.

Only one Home Loan (by our Bank) under CRE category should be sanctioned by the
competent authority. In case of more than one Home Loan under CRE category, deviation
powers are vested with COCC (ED) subject to maximum three CRE Home Loans to one
borrower (by our Bank). However, the said loan should be sanctioned on merit by the
competent authority, as the case may be.

The rate of interest for Baroda CRE Home Loan will be 0.25% over applicable rate on normal
Home Loans.

Detailed guidelines of „Baroda CRE Home Loan‟ are as under:

Baroda CRE Home Loan

If an individual (Resident/ NRI) owns two or more houses (Houses / Flats) , singly or jointly,
then the exposure for the third house onwards/ purchase of plot is to be considered under
the CRE Home Loan Scheme.

As against the risk weight of 50% up to Rs.75 Lacs and 75% for above Rs.75 Lacs and
standard asset provisioning of 0.40% on regular Home Loans, the following guidelines of CRE
Advances (as per Domestic Real Estate Policy -2014) are made applicable for CRE Home
Loan:

No. Parameter Guidelines for CRE Exposure made applicable for CRE
Home Loan.
1. Risk Weight 100%
Standard asset
2. 1.00%
provisioning

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 3. Exposure to Single Exposure ceilings on Single / Group exposure limits as advised
/Group Borrowers from time to time are to be adhered to.
4. Real Estate Sector Housing Loans (Residential Mortgages) – Rs.37900 Crores
Limits Commercial Real Estate- Rs.18900 Crores
** The activity caps are finalised by Risk Management Dept.,
BCC and the above caps have been finalised by them based on
the audited financials of 31.03.13. The Risk Management Dept.
will undertake a Risk Appetite exercise for the Bank from time to
time and fix the activity caps.
5. Priority sector As per guidelines of Regular Home Loan.
Classification
6. Activity clearance Commercial Real Estate – Exposure to others (excluding
builders and developers) : Not required
7. Appraisal and  Pre-Sanction verification of genuineness of various documents
sanction submitted by the Borrowers
 Verifying the genuineness of salary / income details and
employment / business status by visiting office of employment
/ place of business of the borrower.
 Due diligence on the builders
 Verification of the antecedents of the prospective borrowers
 In case of floating rates loans, it is desirable for operating
units to study the impact of upward movement in the interest
rate on EMI and the borrower‟s ability to meet the raised
interest burden.
8. Sanction and  If any real estate advance sanctioned is not availed within four
disbursement months (six months in case of priority sector advance) from
the date of sanction, the facility should not be allowed without
referring the matter to the sanctioning authority.
 The extant guidelines as regards sanction, documentation,
verification of document, insurance, creation of mortgages and
registration thereof with appropriate authorities in accordance
with State Laws and verification of the genuineness of the
proof of such registration and requirements before
disbursement etc issued from time to time are needed to be
adhered to.
9. Post Sanction  Disbursement to be made on verifying the progress of the
Monitoring project based on Architect‟s/Engineer‟s Certificate.
 Timely post sanction visits and inspection of sites
 Timely renewal of insurance cover
The following are the guidelines of CRE Advances (as per Domestic Real Estate Policy -2014)
made applicable for CRE Home Loan with modifications:
No. Parameter Guidelines made applicable for CRE Home Loan
1. Rate of Interest 0.25% over applicable rate on normal Home Loans.

If the CRE Loan is availed under Baroda Home Loan Advantage,

the applicable rate will be 0.25% over the applicable rate on
Baroda Home Loan Advantage.
2. Service Charges Same Unified processing charges as applicable for Normal Home
Loans.
3. Credit Rating Credit rating to be done as per Home Loan Model under Retail
Rating Models.
Page | 53
4. Margin/Promoters Same margin norms applicable for normal Home Loans.
contribution
5. Maximum Period Maximum period will be same as applicable to normal Home
Loans
6. Additional control Granting of Advance to Real Estate Sector, excluding Retail
measure for Loans and Housing Loans, falls under Activity Clearance and can
Commercial Real be considered by way of Term Loan.
Estate.  Overall commercial real estate exposure limit of Rs.56800
Crores.
 Bank shall not consider granting advances for merely
purchase of plot, whether industrial or residential or
otherwise, since it may amount to speculative activity.

 In case House is rented out, rent should be credited to the SB

account of the borrower with us. May be relaxed with
approval of Zonal Authority in genuine cases.

7. Stipulation towards
use of Fly Ash & Stipulation is dispensed with.
Fly Ash based
products in the
terms of sanction.

Other conditions:

 Baroda CRE Home Loans are to be sanctioned by Specialised Mortgage Stores (SMSs)
only. In case the branch considering the proposal is not attached to any SMS, the
same should be referred to Regional Office for sanctioning the Loan by Regional
Authority. In such case, subsequent deviations if any, in any of the parameters,
powers of which is vested with Regional Authority as per regular Home Loan scheme,
are to be referred to Zonal Authority for its approval.

 Only one Home Loan (by our Bank) under CRE category should be sanctioned by the
competent authority. In case of more than one Home Loan under CRE category,
deviation powers are vested with COCC (ED) subject to maximum three CRE Home
Loans to one borrower (by our Bank). However, the said loan should be sanctioned on
merit by the competent authority, as the case may be, as stated above.

 Home Loan advantage Loans to Resident Individuals and to NRI/PIO/OCI to be

opened in separate scheme codes in Finacle as under:

Scheme Code (Finacle) Description

1. LA117 CRE Home Loan (Resident)
2. LA187 CRE Home Loan (NRE)
3. LA188 CRE Home Loan (Advantage – Resident)
4. LA189 CRE Home Loan (Advantage – NRI)

 For the scheme LA188 – CRE Home Loan (Advantage - Resident) linking of accounts
at the time of account opening (OAAC and HOAACLA menu options) and through
Notional Pooling Parameter ie. ACM Option + (plus) is permitted with SB accounts in

Page | 54
 SB152 scheme only. (i.e., In case of LA188 the linked SB account should be in SB152
scheme code)

 For the scheme LA189 - CRE Home Loan (Advantage- NRI), linking of accounts at
the time of account opening (OAAC and HOAACLA menu options) and through
Notional Pooling Parameter ie.ACM Option + (plus) is permitted with SB accounts in
SB252 and SB352 scheme accounts. (i.e., In case of LA189, the linked SB account
should be in SB252 or in SB 352 scheme codes)

 Unified Processing Charges : Same as Baroda Home Loan

 All the guidelines of regular Home Loan scheme, including risk based pricing based on
the CIBIL score of the applicant/s will be applicable.

Page | 55
 BARODA PRE APPROVED HOME LOAN

Bank has introduced a new scheme under Home Loan namely „Baroda Pre Approved
Home Loan‟ to give an „in-principle approval‟ for a home loan prior to identification of house
/ flat by the prospective borrower. It gives greater flexibility in negotiations to the borrower.
The borrower gets assured of eligible loan amount only.

„Baroda Pre Approved Home Loan Scheme‟, gives clear and uniform guidelines in conveying
„in-principle approval‟ for Home Loans prior to identification of a specific house / flat by a
prospective borrower. To safeguard the Bank‟s interests, it will clearly be specified in the
approval letter that the Bank is under no commitment or obligation as the actual sanction or
disbursal would depend upon the value and acceptability of the security to be offered (i.e.,
the house / flat to be financed), legal and technical clearances, and the creation of a valid
mortgage and as per prevailing guidelines of Home Loan. The KYC compliance and
assessment of eligible loan amount are to be completed before finalization of the property
deal by the borrower.

The „in-principle approval‟ shall be valid for 4 months from the date of issue, subject to that
at least partial disbursement of the loan is made before the expiry of the validity period. The
„in-principle approval‟ will be conveyed on a uniform and specified format.

The features of the scheme are as under:

Baroda Pre Approved Home Loan.

 „Baroda Pre Approved Home Loan‟ provides in-principle approval‟ for a Home Loan prior
to identification of a specific house/flat/plot by a prospective applicant of Home Loan.

 It gives the customer greater flexibility in negotiations with builders/sellers.

 The customer is assured of eligible loan amount.

 The „in-principle‟ sanction letter for „Baroda Pre Approved Home Loan‟ will give eligible
loan amount calculated as per prevailing interest rates and other existing guidelines of
Home Loan.

 The loan eligibility will be assessed on the basis of income details of the customer and
CIBIL scores as per existing guidelines of Home Loan scheme to Resident
Individuals/NRI/PIO/OIC or Baroda Home Loan Advantage as the case may be.

 Therefore all the documents in support of income and repayment capacity (except
property documents) to be obtained, CIBIL report to be generated and duly verified
before issuing the Pre Approved Sanction letter.

 The „in-principle‟ approval shall be valid for -4- months from the date of issue.

 Unified Processing Charges:

Guidelines upto 30.06.2016: 50% of unified processing charges applicable to regular

Home Loan scheme with a minimum of Rs.2,500/- +ST and a maximum of Rs.10,000/- +
ST will be recovered upfront and will be non-refundable (in case of not availing the loan).

Page | 56
 Modified Guidelines w.e.f 01.07.2016: Rs.7,500/- (upfront). If the borrower
submits the property documents with in the validity period of pre- approval letter,
balance amount of unified processing charges as applicable to Home Loan only will be
recovered from the borrower.

 Property papers will be required to be submitted by the applicant/s within the validity of
„Baroda Pre Approved Home Loan‟, i.e., within -4- months from date of issue. If the
applicant/s submits the property documents within the validity period, balance amount of
applicable unified processing charges only will be recovered from the applicant further on
actual sanction of Home Loan, as per the guidelines/ instructions on processing charges
prevailing on the date of actual sanction.

 In case sanction under „Baroda Pre Approved Home Loan‟ is provided during Property
Expos/Shows/our Marketing Campaigns etc charges may be waived. Copies of these
sanctions with waiver to be put up to next higher authority for PSR and records are
maintained accordingly.

 The „Pre-approval‟ to be conveyed as per the specified format

 To safeguard the Bank‟s interests, it will clearly be specified in the approval letter that
the Bank is under no commitment or obligation as the actual sanction or disbursal would
depend upon the value and acceptability of the security to be offered (i.e., the house /
flat to be financed), legal and technical clearances, the creation of a valid mortgage and
extant guidelines of Home Loan.

 The draft of „in-principal approval‟ is given as Annexure-32

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 BARODA HOME IMPROVEMENT LOAN

1. Target Group: (same as Home Loan scheme)

 Resident Indians
 Non-Resident Indians (NRIs) holding Indian passport or Persons of Indian origin
(PIOs) holding foreign passport, singly or jointly or Overseas Citizens of India (OCI).
 Staff members are also eligible (since product features of Housing Loan to Staff
under Public scheme is realigned with regular Home Loan schemes w.e.f.
01.04.2016)
 HUFs are not eligible.

2. Purpose:

 For repairs / renovation / improvement of existing House/ Flat.

 Purchase of furniture / fixtures / furnishing / other gadgets such as fans, geysers,
air conditioners, water filters, air purifiers, heaters, desert coolers, etc.

3. Maximum Loan Amount (Ticket Size): - Rs. 50 Lacs

 (There is no stipulation of sub limit for loan component for furniture/ fixtures /
furnishings / other gadgets w.e.f. 01.04.2016)

4. Margin: 25 % of Project Cost which includes :-

o estimated cost of repairing / renovation
o cost of furniture / fixture / furnishing / other gadgets

5. Repayment Period: Maximum -15- years

6. Moratorium period: -6- Months or one month after completion of repair/renovation

work, whichever is earlier.

7. Age (same as Home Loan scheme):

 Minimum age: Minimum age of the applicant must be 21 years. However, the
minimum age of co-applicant/s can be 18 years.

 Maximum age:

Salaried Persons:

Age of the applicant/co-applicant/s (whose income are considering for eligibility) plus
repayment period should not be beyond retirement age.

However,
(a) Maximum age can be considered upto 70 years. i.e., the age by which the Loan
should be fully repaid, subject to availability of sufficient regular and continuous source of
income for servicing the loan, provided:

Page | 58
 (i) Son/ Daughter/ Spouse who is a legal heir and preferably below 50 years of age,
with sufficient income for servicing the loan repayment joins as Co-
Applicant/Guarantor.
(OR)
(ii) If applicant pledges FDRs / NSCs / Govt. Security etc. of adequate value to ensure
continuity of income for repayment of loan installment with interest if sanctioning
authority is satisfied about the same.

(b) Maximum age can be considered up to 70 years, also in case of salaried persons
covered under pension scheme, subject to the condition that 40% of the pension is
sufficient to pay EMI. In case EMI exceeds 40% of the pension, the borrower to deposit
adequate amount in the loan account so as to reduce the outstanding amount of loan to
the extent it can be serviced by 40% of the pension.

Others (Self-employed/professionals/agriculturists & NRIs etc.):

Age of the applicant/co-applicant/s (whose income are considering for eligibility) plus
repayment period should not exceed -65- years.

However,
Maximum age can be considered upto 70 years. i.e., the age by which the Loan should
be fully repaid, subject to availability of sufficient regular and continuous source of
income for servicing the loan, provided:
(i) Son / Daughter / Spouse who is a legal heir and preferably below 50 years of age,
with sufficient income for servicing the loan repayment joins as Co-Applicant
/Guarantor.
(OR)
(ii) If applicant pledges FDRs / NSCs / Govt. Security etc. of adequate value to ensure
continuity of income for repayment of loan installment with interest if sanctioning
authority is satisfied about the same.

8. Rate of interest (Pricing): Pricing Structure as per Home Loan.

 Bureau score validations as applicable to Home Loan will be applicable to Home

Improvement Loan also.

 The rate of interest will be reviewed annually on due date of review of the account.
Accordingly, ROI will be revised based on the CIBIL score of the borrower and the
applicable spread over „1 year MCLR + Strategic Premium‟ in force on due date of
review. (Guidelines same as that of Home Loan scheme in this regard will be
applicable)

9. Income Criteria (Income Multipliers)- (Guidelines as per Home Loan scheme will be
applicable):

▪ Salaried Persons
Gross Monthly Income (GMI) less than Rs. 50,000 48 times of GMI
Gross Monthly Income (GMI) Rs. 50,000 and above but less 54 times of GMI
than Rs. 1 Lac:
Gross Monthly Income (GMI) Rs. 1 Lac and above 60 times of GMI

Page | 59
 ▪ Others (Self-employed/professionals/agriculturists & NRIs etc.):

Gross Annual Income (GAI) less than Rs.2.00 Lacs 4 times of GAI
Gross Annual Income (GAI) Rs.2.00 Lacs & above 6 times of GAI

Income to be considered for multiplier:

 For Salaried Persons: Average of last 3 months‟ GMI (Gross Monthly Income)
 For Others: Average of last 2 years‟ Gross Annual Income
 If agriculture/other regular income is declared in the IT return, the same can be
considered for eligibility.
 Depreciation can be considered for computing income for Businessmen,
Professionals, Self-Employed, Individuals etc who run the business /activity on
proprietorship basis- with same guidelines as Home Loan scheme.
 If the income of co applicant/s is accepted for the purpose of addition of their
income to the income of principal applicant for arriving higher eligible limit,
sustainability of income of co-applicant/s has also to be ensured and assessed in the
same line for salaried/non-salaried/agriculturist etc as the case may be in similar
lines with Home Loan scheme.

10. Repaying Capacity (FOIR- Fixed Obligation to Income Ratio): (Guidelines as per
Home Loan scheme will be applicable):
i. Salaried persons:
FOIR[Total Deductions,
Gross Monthly Income (GMI) including proposed EMI not to
exceed)
Less than Rs. 20,000/- 50%
Rs.20000 and above but less than 50000 60%
Rs. 50000 and above but less than Rs. 2.00 Lacs 65%
Rs.2.00 Lacs and above but less than Rs.5.00 Lacs 70%
Rs. 5 Lacs and above 75%
ii. Others (Self-employed / Professionals / Agriculturists / NRIs etc.):
FOIR [Total Deductions,
Gross Annual Income (GAI) including proposed EMI not to
exceed)
Up to Rs.6 Lacs 70%
More than Rs. 6 Lacs 80%
 The same base of the income as considered for „Income Multiplier‟ (for income criteria)
to be considered for FOIR (Repayment capacity) also.

11. Security:
 Mortgage of the property to be repaired / renovated.
 If mortgage is not feasible, Branch can accept, at its discretion, security of adequate
value in the form of Fixed Deposits, Life Insurance Policies, Government Promissory
Notes, Shares and Debentures, Gold ornaments or such other securities including
third party guarantee from individual/s as may be deemed adequate, with the prior
permission of Regional Head. Margin on securities is to be maintained as per
extant guidelines applicable for financing against such securities.
 Even if it is possible to create Mortgage but customer desires that the Mortgage need
not be insisted upon, in such case Branch may as a special case, accept at its
discretion, security of adequate value in the form of Fixed Deposits, Life Insurance
Policies, Government Promissory Notes, Shares and Debentures, Gold ornaments or
Page | 60
 such other securities including third party guarantee from individual/s as may be
deemed adequate, with the prior permission of Regional Head, along with
stamped undertaking that the borrower shall not create any charge on the said
property to any third party and that he will create mortgage of the dwelling units /
residential property at a later date if desired by the Bank, be obtained from
borrower. Margin on securities is to be maintained as per extant guidelines applicable
for financing against such securities.
 Loans up to Rs.50, 000/- in rural areas and up to Rs.2/- Lacs in other areas can be
given on clean basis provided employers undertaking to recover instalment from
salary is made available or third party guarantee of a person whose worth should be
at least double the amount of loan and subject to obtain ECS mandate for recovery
of EMIs as per extant guidelines. However, a stamped undertaking that the borrower
shall not create any charge on the said property to any third party and that he will
create mortgage of the dwelling units/ housing property at a later date if desired by
the bank, be obtained from the borrower.

Total clean/unsecured exposure (i.e., without collateral security) to the customer

including this loan should not exceed Rs.2/- Lacs.

12. Documentation:
 Term Loan Agreement.
 Declaration cum Undertaking cum Authority.
 General Form of Guarantee (LDOC 33), if stipulated.
 Usual procedure for creation of Mortgage of the Residential immovable property
being financed to be adopted.

13. Disbursement of Loan:

 In case of repair/renovation : Directly to the borrower subject to verification of
bills/money receipts etc. or certificate issued by approved valuer/architect certifying
the progress of the work and the estimated expenditure having incurred therefore,
as the case may be.
 For furniture/fixtures/furnishing and other gadgets: Directly to the Supplier.

14. Unified Processing Charges: Same as per Home Loan scheme

15. Insurance of the House:

House mortgaged with the Bank is to be insured. Insurance modalities are similar to
the Home Loan scheme.

16. Prepayment Charges:

 No prepayment charges shall be levied on foreclosure of Home Loans irrespective of
the nature of source of funds i.e., whether the loan is repaid from the own sources
of borrower or by way of takeover by other banks/HFCs or otherwise.

17. Other parameters / guidelines.

All other parameters/features - eligibility of applicant/s, addition of co-applicants,

age criteria, CIBIL score validations and guidelines for pre-sanction inspection, post-
sanction inspection, Discretionary Lending Powers, take over guidelines, Free Credit
Card, Priority sector classification, Powers of Deviations & Deviation charges;
Preventive Vigilance guidelines etc are same as Baroda Home Loan scheme.

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 BARODA ADDITIONAL ASSURED ADVANCE (AAA)

Baroda Additional Assured Advance (AAA) is an Additional Loan facility extended to Home
Loan Borrowers for any purpose except speculative/illegal purpose, which is better offering
than the Top up Loans offered by peer Banks, eligibility of which are generally based on the
amount repaid towards principal amount.

The AAA facility is granted against the security of extension of Mortgage of House Property
already mortgaged to secure Home Loans and can be availed to a maximum of 5 times
during the entire tenure of Home Loan.

Detailed product features of the Scheme are as under:

1 Type of facility  Term Loan / Demand Loan (as per total period of loan)
 Separate Loan a/c is to be opened
2 Purpose of  Any purpose excluding speculative or illegal purpose
Loan
3 Eligibility  All Existing Home Loan (including Home Improvement Loan)
Borrowers including NRIs /PIOs, Staff and Ex-staff Members
(availed Home Loan under Public scheme as well as Staff
Housing Loans) whose conduct of the account is satisfactory
and the account is classified Standard.

 There is no adverse feature / Auditor's/ Inspecting Officer's

remarks in existing Home Loan a/c.

 The facility can also be considered when a Home Loan

account is taken over from other banks /HFCs/NBFCs etc.
(Detailed guidelines given hereunder under Point No. 18).

 Addition of co-applicants: (Same guidelines as per Home

Loan scheme.)

The close relatives of the applicant can be added as a co-

applicant for higher eligibility.

If the applicant wants to add any person who is not a

close relative as a co-applicant, same can be considered
only if he/ she are the joint owner of property. In such
cases, name of any other close relative, who is not a joint
owner of the property, should not be added as co-
applicant for considering higher eligibility.

In case, if the income of the co-owner/s of property, if

any, is not considered for eligibility, he/she can still be
made as a co-applicant. In such cases, upper age criteria/
employment criteria will not be applicable for these co-
applicants.

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 List of Close Relatives:
Spouse, Father, Mother (including Step Mother), Son
(including Step Son), Son‟s wife, Daughter (Including
Step Daughter), Daughter‟s husband, Brother/sister
(Including step brother/sister), Brother‟s wife, sister
(including step sister) of spouse, Sister‟s husband,
Brother (including step brother) of spouse.
4 Age Minimum Age: 21 years (applicant)
18 years (co-applicant)

Maximum age:
 Age of the borrower + tenure of AAA Loan should not exceed
70 years as per laid down norms mentioned under Home
Loan Product (For Resident Indian)
 Age of the borrower + tenure of AAA Loan should not exceed
65 years (For NRIs /PIOs /OCIs)
5 Limit  Minimum Rs.1 Lac
(Ticket Size)
 Maximum Rs.2.00 Crores
Or
75% of Residual Realisable Value of Residential property
after deducting 150% of outstanding amount of Existing
Home Loan, whichever is lower.
6 Margin  25% of Residual Realisable Value of Residential Property
after deducting 150% of outstanding amount of Existing
Home Loan.
7 Review of the  Account to be reviewed annually
account  Due date to be synchronized with the due date of Home Loan
account
8 Rate of  1 Year MCLR + Strategic Premium + 1.50%
Interest
(Pricing) - Rate of interest of AAA Loan is not linked to CIBIL score of
applicant/s
- CIBIL score validations as applicable for Home Loans / Home
Improvement loans are not applicable for AAA Loans.
- However, Bureau report of all the applicants/guarantor/s to
be generated and satisfied upon as per extant guidelines.
9 Repayment As per request of the borrower subject to repaying capacity.
period However the maximum period should not be more than the
remaining period of Home Loan.

Repayment by Equated Monthly Installments (EMI). First

installment to fall due one month after first disbursement.

In case the Home Loan a/c is foreclosed, then the repayment

period of AAA loan account is to be rescheduled in such a
way that the loan (AAA) is liquidated maximum within a
period not exceeding -4- years.
10 Unified 0.25% of the Loan amount
Processing Minimum: Rs.5,000/- (upfront)
Charges Maximum: Rs.12,500/- plus Service Tax

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11 Repaying  FOIR-Fixed Obligation to Income Ratio (Repayment capacity)
capacity to be calculated in same line with Home Loan.
 There should be commensurate increase in take home salary
/ income of the borrower when AAA facility is considered.
 Borrower to submit necessary papers in support of income.
12 Security  Extension of the existing mortgage of the Residential
property created to secure the Home Loan.
 Personal guarantee of third party, if the same is stipulated in
Home Loan.
13 KYC ▪ No additional KYC document requirements for considering
Documents AAA Loan to existing Home Loan borrowers.
14 Documents  In case of Term Loan
 Term Loan Agreement
 General Form of Guarantee, if guarantee is stipulated.
 In case of Demand Loan
 D P Note
 Letter of installment with acceleration clause
 General Form of Guarantee, if guarantee is stipulated
Other documents related to extension of mortgage of property.
15 Valuation of  In case of properties acquired within last -3- years, amount of
the property Registered Sale Deed or the Realisable Value whichever is lower
should be taken as value of property.

 If the present Realisable value is higher than the Registered

value (Registered within last 3 years) and if it requires to
consider present Realisable value as value of property, for any
reason, prior permission from Regional Authority to be
obtained for the same.

 In other cases, i.e. execution of the Sale Deed is prior to 3

years, present Realisable Value as per the fresh Valuation
Report from the Bank‟s approved Valuer to be accepted to
the satisfaction of the sanctioning authority, for calculation of
the loan limit.

 In case of existing Home Loan accounts, present Realisable

Value to be accepted as value of the security; subject to the
condition that present valuation is carried out only after -3-
years from the date of previous valuation.

 In case of Take over:

 Fresh Valuation Report to be obtained from our Bank‟s
approved Valuer and margin & LTV Ratio is maintained as
per the scheme.

 Please note that the valuation norms in respect of property

purchased within last -3- years that the amount of
Registered Sale Deed to be taken as value of the Property
is not applicable for takeover Home Loans & AAA.

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17 Maximum  This facility can be availed maximum -5- times during entire
times the loan tenure of Home Loan provided previous AAA account has
can be availed been adjusted.
18 Insurance of  Property Insurance Cover to be obtained at the cost of
House/Flat borrower as per Bank‟s norms.
 Free Personal Accidental Death Insurance Cover is available
under Master Policy.
 Group Credit Life Insurance Cover (Optional and at the cost
of Borrower)
19 In case take  The AAA facility can also be considered when a Home Loan
over from other account is taken over from other banks/HFCs.
Banks / HFCs /  Top-up facility to Home loan borrowers by other Banks /
NBFCs / FIs HFCs / NBFCs / FIs etc. can also be taken over along with
etc. Home Loan account.
 Asset Classification of the account taken over must be
„Standard‟
 There must not be any over dues at the time of take over.
 Statement of account to be obtained from the earlier
Banks / HFCs / NBFCs / FIs
 Valuation of the property should be done afresh.
 Other guidelines in respect of Take over of Home loans to
be adhered
 In case of Insurance cover for earlier loan with other
Banks / HFCs / NBFCs / FIs, same to be transferred in our
Bank‟s favour.
 All other guidelines regarding sanction of Home Loan/AAA
to be followed.
20 Powers of Financial/non-Financial Deviations/Concessions in respect of
Deviations & scheme parameters/ guidelines may be considered as per
Deviation Circular No. BCC: BR: 108/53 dated 29.01.2016.
charges
Deviation charges: Rs. 1,500/- per deviation with maximum of
Rs.5, 000/- + ST.
21 Priority/ non-  For reporting purpose AAA loans are segmented under Home
priority sector Loan portfolio.
Classification  However, AAA loans are to be classified under priority/non-
priority classification based on the purpose (activity) for
which the loan is utilized. While incorporating data in Finacle
/ Ascrom, Branches should ensure to feed proper sector
/activity codes for AAA loans in order to classify the accounts
in priority/non-priority based on the purpose.
21 Issuance of Normally, since AAA facility is being extended for any purpose
interest other than speculative purpose, repayment towards interest and
certificate to principal are not eligible for income tax benefit.
borrowers for
Income Tax However, in case, if the proceeds of the AAA Loan are utilized
purpose. for purposes for which income tax benefit are available
(construction of house etc), Branches may issue certificate for
income tax purpose to the extent of loan component for such
purpose, provided the same is duly supported by original bills,
receipts etc. and pre / post sanction inspections.

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 GOLDEN JUBILEE RURAL HOUSING FINANCE SCHEME (GJRHF)

Objective: To extend financial assistance for construction /purchase /repairs/extension of

dwelling units in Rural Areas the population of which does not exceed 50000 as per 1991
census.

Purpose: For construction of new dwelling units, acquisition of dwelling units not older than
20 years, repair/renovation/extension of existing house, takeover of loan already availed
from any Bank/HFC and for construction of dwelling units cum farm house on agriculture
land for the purpose of residence and storage of farm equipments/implements and farm
produces.

Eligibility: Any individual residing in rural area with population not exceeding 50000 as per
1991 census and having sufficient repayment capacity.

Maximum Limit: Rs.100.00 Lacs and Rs.1.00 Lac for repair/renovation of existing
dwelling unit.

Margin: 10% on project cost

Security: Equitable Mortgage of house property or any other security like LIC
policies/NSCs/KVPs/FDR or Government Guarantee

Rate of Interest: As per interest rates applicable for normal Housing Loan scheme of
Bank.

Repayment: In EMIs or should be fixed in such a way that it synchronizes with income
patters of the borrower i.e., crop cycle.

All other features and guidelines of Baroda Home Loan scheme will be applicable.

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Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS)

The Ministry of Housing and Urban Poverty Alleviation, Government of India, has established
a Credit Risk Guarantee Fund Trust for providing guarantees in respect of low-income
housing loans. A Credit Risk Guarantee Fund Scheme for Low Income Housing (CRGFS) has
been launched by the Government of India on 31st October 2012, which will be managed by
the National Housing Bank.

Under the Scheme, the Trust will provide credit risk guarantee to the lending
institutions against their housing loans up to Rs.5.00 lakh granted to the
borrowers in the Economically Weaker Section (EWS)/ Lower Income Group(LIG)
categories in urban area without requiring any collateral security and/or third
party guarantee. The extent of Guarantee Cover to be provided under the Scheme is 90%
of the amount in default in respect of loan amount up to Rs 2.00 lakh and 85% of the
amount in default for housing loan above Rs 2.00 lakh and up to Rs 5.00 lakh. Our bank has
executed a MOU with the National Housing Bank on 4th March 2013 for participating in
CRGFS. Hence the scheme is available to eligible Home Loans sanctioned from 04.03.2013
only.

Salient Features of the scheme are as under:

1. Eligible Borrower:

The trust shall cover Housing Loans sanctioned to new eligible borrower in the low
income housing sector in urban areas for Housing Loans not exceeding Rs.5.00 Lacs
after entering into an agreement with the Trust, without any collateral security
and/or third party guarantees. (Our Bank has executed MOU with the National
Housing Bank on 04.03.2013 for participating in CRGFS) and a housing unit size up to
430 sq ft (40 sq m) carpet area and to which housing loan has been provided without
any collateral security and/or third party guarantee. Eligible borrowers, as defined
above, forming a group or housing society of at least 20 members, shall also be
eligible under the scheme.

Trust will provide guarantee cover in respect of loan proposals sanctioned in the
quarter April-June, July-September, October-December and January-March prior to
expiry of the following quarter viz, July-September, October-December, January-
March and April-June respectively. Provided further that as on the material date:

i. The dues to the lending institution have not become bad or doubtful of
recovery and/or

ii. The property/asset of the borrower for which the housing loan was granted
has not ceased and/or

iii. The housing loan has not wholly or partly been utilised for adjustment of any
debts deemed bad or doubtful of recovery, without obtaining a prior consent
in this regard from the Trust.

iv. The borrower has paid the necessary fees and charges for the said property.

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 The eligible borrower shall be required to submit an undertaking to the lending
institution to the effect that she/he has not availed any other housing loan covered
under this scheme nor any additional risk cover has been granted to the housing
loan availed by her/him by Government or by any general insurer or any institution
or any other person or association of persons carrying on the business of insurance,
guarantee or indemnity.

2. Eligible Activity: Activities eligible for Guarantee Cover: Activities that are
eligible for Guarantee Cover are home improvement, construction, acquisition and
purchase of new or second hand dwelling units involving a Housing Loan amount not
exceeding `5 lakh per person. Loans given fully/partly for renovation/repairs are not
eligible for the Guarantee Cover under the Scheme.

3. Housing Loans not eligible under the scheme: The following housing loans
shall not be eligible for being guaranteed under the scheme:

I. Any housing loan in respect of which risks are additionally covered by

Government or by any general insurer or any institution or any other person
or association of persons carrying on the business of insurance, guarantee or
indemnity to the extent they are so covered.

II. Any housing loan granted to any borrower, who has availed himself of any
other housing loan covered under the scheme or under the schemes
mentioned in clause (I) above and where the lending institutions has invoked
the guarantee provided by the Trust or under the schemes mentioned in
clause (I) but has not repaid any portion of the amount due to the Trust or
under the schemes mentioned in clause (I) as the case may be, by reason of
any default on the part of the borrower in respect of that housing loan.

III. Any housing loan which has been sanctioned by the lending institution
against collateral security and/or third party guarantee.

IV. Any housing loan which has been sanctioned by the lending institution with
interest rate more than the prevailing rate applicable for that eligible loan
category or 2% over the base-Rate of the lending institution whichever is
easier.

4. Economically Weaker Section (EWS):Economically Weaker Section (EWS) means

households with household income up to Rs.1,00,000/- per annum or as revised by
the Ministry of Housing & Urban Poverty Alleviation, Government of India, from time
to time.

5. Low Income Group (LIG) category: Lower Income Group (LIG) means
households with household income between Rs.1,00,001/- to Rs.2,00,000/- per
annum or as fixed by the Ministry of Housing & Urban Poverty Alleviation,
Government of India, from time to time.

6. Low Income Housing: A Housing unit, for economically weaker and low income
individuals of size up to 430 Sq ft (40 Sq m) carpet area.

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7. Tenure of guarantee cover: Guarantee cover shall commence from guarantee
start date and shall run through the agreed tenure of the housing loan and for a
maximum period of 25 years or loan termination date, whichever is earlier.

8. Amount in Default: Principal and interest amount outstanding in the account(s) of

the borrower in respect of housing loan, as on the date of account becoming Non
Performing Asset (NPA) or the date of lodgement of claim application whichever is
lower or such of the date as may be specified by the “Credit Risk Guarantee Fund
Scheme (CRGFS) for preferring any claim against the guarantee cover subject to a
maximum of amount guaranteed.

9. Extent of Guarantee:
Category Maximum Extent of Guarantee for Housing Loan
Housing Loans Up to Rs 2.00 lakh or such Above Rs 2.00 lakh and up to
by Individual amount as decided by the Trust Rs 5.00 lakh or such amount as
Borrowers from time to time decided by the Trust from time
to time
90% of the amount in default 85% of the amount in default
subject to the ceiling of 90% of subject to ceiling of 85% of the
the sanctioned housing loan sanctioned housing loan
amount. amount.

10. Guarantee Fee:

(A) One time guarantee fee at the rate of 1.00% (or as specified by the Trust from
time to time) of the total loan amount shall be paid upfront to the Trust within
30 days from the date of first disbursement of housing loan or 30 days from the
date of Demand Advice of guarantee fee whichever is later or such date as
specified by the Trust.

(B) The guarantee fee shall not be charged from the beneficiary as an upfront
processing fee.

11. Lock-in period: No claim can be made to the Trust for settlement within the period
of 24 months after last disbursement was made to the borrower or within the period
of 24 months from the date of the guarantee cover coming into force in respect of
particular housing loan or two months after the completion of the house, whichever
is later.

12. Invocation of Guarantee: The lending institution shall invoke the guarantee in
respect of housing loan:

(A) In case the loan is classified as NPA before the lock-in period expires, the
guarantee can be invoked in respect of housing loan within one year of the
expiry of the lock-in period or.

(B) In case the loan is classified as NPA after the lock-in period expires, within one
year of the loan being classified as NPA subject to the following conditions being
satisfied:

 The guarantee in respect of that housing loan is in force at the time of account
turning to NPA.

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  The lock-in period has elapsed.

 Amount due and payable by the borrower to the Bank has not been paid and
account is classified as NPA. Provided that the lending institution shall not make
or be entitled to make any claim on the Trust in respect of the said housing loan
if the loss has occurred owing to action/decision taken contrary to or in
contravention of the guidelines issued by the Trust.

 Housing loan has been recalled and recovery proceedings have been initiated
under due process of law. Mere issuance of recall notice under SARFAESI Act
2002 shall not be construed as initiation of legal proceedings for the purpose of
preferment of claim under CGS. Bank is required to take further action as
contained in Section 13 (4) of the above Act as a secured creditor and take
recourse to any one or more of the recovery measures out of the four measures
indicated therein before submitting claim for first installment of guarantee
amount. In case branch is not in a position to take any of the action indicated in
Section 13 (4) of the aforesaid Act, they may initiate fresh recovery proceeding
under any other applicable law and seek the claim for first installment from the
Trust.

(C) Settlement of Claim: The Trust shall pay 75% of the guarantee amount on
invocation of guarantee, within 60 days of applying for settlement of claim,
subject to claim being in order and complete in all respects. The balance 25% of
guarantee amount will be paid on conclusion of recovery proceedings by Bank.

(D) In the event of default, the lending institution shall exercise its rights, if any to
take over the assets of the borrowers by taking permission of the Trust and the
amount realised, if any, from the sale of such assets or otherwise shall first be
credited in full by the lending institution to the Trust before it claims the
remaining 25 percent of the guaranteed amount. If the Trust so desires, it can
retain the asset by paying remaining 25 percent of the guaranteed amount and
may give it to the next eligible borrower or as the case may be.

(E) The guarantee claim received directly from the branches or offices other than
respective designated corporate office/Head office of lending institution will not
be entertained.

Reserve Bank of India, vide circular No: DBOD.No.BP.BP.BC-90/21.04.048/2012-13 dated

16th April 2013 has advised Risk Weights and Provisioning norms for the advances
guaranteed by Credit Risk Guarantee Fund Trust for Low Income Housing (CRGFTLIH) as
under:
i. Risk Weight:
Banks may assign zero risk weight for the guaranteed portion. The balance outstanding
in excess of the guaranteed portion would attract a risk-weight as appropriate to the
counter-party.

ii. Provisioning:
In case the advance covered by CRGFTLIH guarantee becomes non-performing, no
provision need be made towards the guarantee portion. The amount outstanding in
excess of the guaranteed portion should be provided for as per the extant guidelines on
provisioning for non-performing advances.

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 13. Responsibilities of Lending Institutions: Scheme stipulates for responsibilities
for lending institutions which inter-alia specifies use of prudent banking judgement,
conduct of account, safeguarding by obtaining primary security, close monitoring of
the account, due diligence and necessary action for recovery of the account.

14. Other Operational Clarifications:

 CRGF Scheme is applicable for the eligible housing loan extended by the lending
institution in Urban Area. The coverage under urban area may extend to
statutory towns, urban agglomerations and planning area.

 The requirement of approval of lay-out plan or building plan is a procedural

requirement of lending institution. CRGF scheme deals only with loan after its
sanction. The lending institutions will follow their extent provisions regarding
sanction of loan.

15. Other Guidelines:

 Vide Gazette notification dated 7th July -13th July 2013, the Government of India
has issued detailed guidelines on “Credit Risk Guarantee Fund Scheme for Low
Income Housing”

16. Operational Guidelines:

A. NHB is in the process of issuing User ID and password to the lending institutions
thereafter, we will be submitting the application online.

B. Meanwhile, we have to forward the applications under CRGFS manually for the
housing loans eligible under the scheme, which are sanctioned by our Bank w.e.f.
04.03.2013 along with the specified guarantee fee.

C. All branches will submit the required information to their respective Regional
office on Quarterly basis. Branches will submit first report covering information
w.e.f. 04.03.2013 to 31st March 2013. Thereafter quarterly information will be
submitted to the Regional office latest by 10th day of following quarter. In case
there is no eligible account in a particular quarter to be reported under the
scheme, then Branch will submit “NIL” report to the Regional office. Report will
be submitted in the format as per Annexure-27 (a)

D. Regional office will compile the quarterly report submitted by the branches under
their jurisdiction and submit the Regional-report to the respective Zonal office
latest by 20th day of following quarter in the format as per Annexure-27(b)

E. Zonal office will compile the report submitted by the Regional offices under their
jurisdiction and submit the Zonal-report to the Retail Banking Department latest
by 25th day of following quarter in the format as per Annexure-27(c)

Retail Banking Department will compile the report submitted by the Zonal offices and send
the requisite 1% of Sanctioned amount as a guarantee fee in the account of the CRGFTLIH
and submit the report to the National Housing Bank.

17. Scheme Code in Finacle: LA 160

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 Baroda Home Loan Suraksha Personal Loan
– Personal Loan scheme for Home Loan borrowers for funding Life insurance
premium of Group Credit Life Insurance.

As per existing arrangements, Group Credit Life Insurance cover for our Home Loan
borrowers is available under tie-up arrangement with M/s. India First Life Insurance Company
Ltd. & M/s. Kotak Mahindra Old Mutual Life Insurance Company Ltd. The insurance cover is
optional and at the cost of borrower.

As per RBI guidelines, which is conveyed vide our Circular No.BCC:BR:105/386 dated
03.09.2013, Branches should not include stamp duty, registration charges, other
documentation charges and other expenses like Life Insurance premium etc. in the cost of
house property to calculate margin/LTV. As such, presently, the premium amount can be
financed as a part of Home Loan only after reducing the Home Loan component to the extent
of premium amount for Group Credit Life Insurance. Therefore, there is a need felt to
introduce a personal Loan scheme for Home Loan borrowers for funding life insurance
premium of Group Credit Life Insurance to safeguard the interest of the borrower/s as well as
the Bank.

Accordingly Bank has launched a new Personal Loan scheme exclusively for Home Loan
borrowers for funding life insurance premium of Group Credit Life Insurance cover for home
loan.

The features of „Baroda Home Loan Suraksha Personal Loan‟ are as under:

Purpose:
 Exclusively for Home Loan borrowers along with Home Loan for funding the premium
amount under Group Credit Life Insurance cover provided by M/s. IndiaFirst Life
Insurance Company Ltd. & M/s. Kotak Life Insurance Company Ltd.

 Existing Home Loan borrowers who wish to avail Group Credit Life Insurance cover
can also avail this personal loan within his/her overall eligibility of Home Loan as per
present guidelines. It is to be ensured that conduct of existing Home Loan account is
satisfactory.

 Baroda Home Loan Suraksha Personal Loan will be sanctioned along with Baroda
Home Loan. For existing Home Loan borrowers, loan can be availed separately.

 If the borrower opts to close the Home Loan account, this personal Loan is also
required to be closed simultaneously. (Branches to ensure that suitable covenant in
this regard has been incorporate in the sanction letter)

Maximum Amount:
 Up to the applicable premium amount for Group Credit life insurance cover for the
Home Loan borrower/s and or co-borrower/s provided by M/s. IndiaFirst Life
Insurance Company Ltd. OR M/s. Kotak Life Insurance Company Ltd.

 The maximum amount will be worked out within the overall eligibility of the borrower
like income criteria, repayment capacity etc except margin/LTV on cost of project for
Home Loan.

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  The eligible amount for loan will be the residual portion of eligible amount worked out
based on income criteria, repayment capacity except margin/LTV on cost of project for
Home Loan OR the applicable premium amount for Group Credit life insurance for the
borrower/co-borrower/s, whichever is lower.

Rate of Interest:
As applicable to Home Loan account for which funding of premium amount is provided
through this „Baroda Home Loan Suraksha Personal Loan‟.

Age: As applicable under Home Loan product guidelines.

Repayment Period:
New borrowers: Maximum Period up to ½ of the repayment period under Home Loan
sanctioned.

Existing Home Loan borrowers: Residual period of Home Loan sanctioned or ½ of the
original repayment period under Home Loan sanctioned, whichever is lower

Risk rating: No separate rating to be done while extending „Baroda Home Loan Suraksha
Personal Loan‟, as the rating is already carried out while sanctioning the Baroda Home Loan
account and loan will be considered within the overall eligibility of Home Loan.

Security Documentation:
1. D P Note
2. Letter of Installment with acceleration clause
3. Declaration cum Undertaking cum Authority
4. General Form of Guarantee
(If stipulated in the sanction of respective Home Loan)
5. Extension of Mortgage

Penal Interest: Penal interest @2% shall be levied on overdue amount

Unified Processing charges: Nil

Sanctioning Authority & Lending Powers:

As the loan is secured by extension of mortgage, loans under the scheme can be considered
as per the normal discretionary lending powers of the sanctioning authority.

If Specialised Mortgage Store (SMS) is considering the respective Home Loan proposal,
Baroda Home Loan Suraksha Personal Loan is also to be considered by the SMS. Other
cases and for existing Home Loan borrowers, individual Branches can consider the loan as
per the normal discretionary lending powers.

Scheme Codes:
Baroda Home Loan Suraksha Personal Loan accounts should be opened in finacle under the
following scheme codes:
Target Loan Scheme Details
S. No
Group Scheme Code Scheme Description
1 Residents LA185 BARODA RESIDENT HOME LOAN SURAKSHA
2 Non LA186 BARODA NRI HOME LOAN SURAKSHA
Residents
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Other Guidelines:

All other eligibility norms will be as per Baroda Home Loan scheme. (Since this Loan will be
considered within the overall eligibility of the borrower under Home Loan subject to income
and repayment capacity).

All other general guidelines will be as per Baroda Personal Loan scheme. However the
exposure under this scheme will be classified as fully secured.

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 PRADHAN MANTRI AWAS YOJANA (PMAY)

Implementation of „Pradhan Mantri Awas Yojana (PMAY) as per Govt. of India

guidelines:

Pradhan Manti Awas Yojana (PMAY) - the Housing for All [Urban] Mission is launched in
compliance with the objective of National Mission Housing providing Housing for All by 2022.
The Mission is being implemented through four verticals which inter alia included affordable
Housing through Credit Linked Subsidy Scheme [CLSS]. Under CLSS, interest subsidy of
6.50% is available on the housing loans which may be availed of by beneficiaries belonging
to EWS / LIG categories. The subsidy would be provided to the loan component to the
extent of Rs.6 Lacs.

Salient features of „Housing for All Mission‟ are as follows:

Scope:
 “Housing for All” Mission for urban area will be implemented during 2015-2022 and
this mission will provide central assistance to implementing agencies through States
and UTs for providing houses to all eligible families/beneficiaries by 2022.
 Mission will be implemented as Centrally Sponsored Scheme (CSS) except for the
component of credit linked subsidy which will be implemented as a Central Sector
Scheme.
 A beneficiary family will comprise husband, wife, unmarried sons and/or unmarried
daughters. The beneficiary family should not own a pucca house either in his/her
name or in the name of any member of his/her family in any part of India to be
eligible to receive central assistance under the mission.
 States/UTs, at their discretion, may decide a cut-off date on which beneficiaries need
to be resident of that urban area for being eligible to take benefits under the
scheme.
 Mission with all its component has become effective from the date 17.06.2015 and
will be implemented upto 31.03.2022.

Coverage and Duration:

 All 4041 statutory towns as per Census 2011 with focus on 500 Class I cities would
be covered in three phases as follows:

o Phase I (April 2015 - March 2017) to cover 100 Cities selected from
States/UTs as per their willingness.
o Phase II (April 2017 - March 2019) to cover additional 200 Cities
o Phase III (April 2019 - March 2022) to cover all other remaining Cities.
Ministry, however, will have flexibility regarding inclusion of additional cities in earlier
phases in case there is a resource backed demand from States/UTs.
 The mission will support construction of houses upto 30 square meter carpet area
with basic civic infrastructure. States/UTs will have flexibility in terms of determining
the size of house and other facilities at the state level in consultation with the
Ministry but without any enhanced financial assistance from Centre. Slum
redevelopment projects and Affordable Housing projects in partnership should have
basic civic infrastructure like water, sanitation, sewerage, road, electricity etc. The
Urban Local Body (ULB) should ensure that individual houses under credit linked

Page | 75
 interest subsidy and beneficiary led construction should have provision for these
basic civic services.
 The minimum size of houses constructed under the mission under each component
should conform to the standards provided in National Building Code (NBC). If
available area of land, however, does not permit building of such minimum size of
houses as per NBC and if beneficiary consent is available for reduced size of house, a
suitable decision on area may be taken by State/UTs with the approval of State Level
Sanctioning and Monitoring Committee (SLSMC). All houses built or expanded under
the Mission should essentially have toilet facility.
 The houses under the mission should be designed and constructed to meet the
requirements of structural safety against earthquake, flood, cyclone, landslides etc.
conforming to the National Building Code and other relevant Bureau of Indian
Standards (BIS) codes.
 The houses constructed/acquired with central assistance under the mission should be
in the name of the female head of the household or in the joint name of the male
head of the household and his wife, and only in cases when there is no adult female
member in the family, the house can be in the name of male member of the
household.
 State/UT Government and Implementing Agencies should encourage formation of
associations of beneficiaries under the scheme like Residents‟ Welfare Association
(RWA) etc. to take care of maintenance of houses being built under the mission.

Implementation Methodology:

The mission will be implemented through four verticals giving option to beneficiaries, ULBs
and State Governments.

The four verticals are as below:

1. “In situ” Slum Redevelopment:

- Using land as a resource

- With private participation
- Extra FSI/TDR/FAR if required to make projects financially viable.

2. Affordable Housing through Credit Linked Subsidy

- Interest subvention subsidy for EWS and LIG for new house or incremental
housing.
- EWS: Annual household income upto Rs.3 Lacs and house sizes upto 30 sq.m.
- LIG : Annual household income between Rs. 3 to 6 lacs and house sizes upto 60
sq.m

3. Affordable Housing in Partnership:

- With private sector or public sector including Parastatal agencies

- Central Assistance per EWS house in affordable housing projects where 35% of
constructed houses are for EWS category.

4. Subsidy for beneficiary- led individual house construction:

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 - For individuals of EWS category requiring individual house
- State to prepare a separate project for such beneficiaries
- No isolated / splintered beneficiary to be covered.

Bank‟s role is to provide Home Loans to EWS & LIG via Credit Linked Subsidy
Scheme, as explained at point No. 2 above and hereunder:-

Credit Linked Subsidy Scheme:

 Affordable Housing through Credit Linked Subsidy:

- Interest subvention subsidy for EWS and LIG for new house or incremental housing.

- Economically Weaker Section (EWS): Annual household income upto Rs.3 Lacs
and house sizes upto 30 sq.m.

- Low Income Group (LIG) : Annual household income between Rs. 3 to 6 lacs and
house sizes upto 60 sq.m

 The Mission, in order to expand institutional credit flow to the housing needs of
urban poor will implement credit linked subsidy component as a demand side
intervention. Credit linked subsidy will be provided on home loans availed by
eligible urban poor (EWS/LIG) for acquisition or construction of house.

 Beneficiaries of Economically Weaker Section (EWS) and Low Income Group (LIG)
seeking housing loans from Banks, Housing Finance Companies and other such
institutions would be eligible for an interest subsidy at the rate of 6.50 %
for tenure of 15 years or during tenure of loan whichever is lower.

 The Net Present Value (NPV) of the interest subsidy will be calculated at a
discount rate of 9 %.

 The credit linked subsidy will be available only for loan amounts upto Rs. 6
Lakhs and additional loans beyond Rs.6 Lakhs, if any, will be at
nonsubsidized rate.
 Interest subsidy will be credited upfront to the loan account of beneficiaries through
lending institutions resulting in reduced effective housing loan and Equated Monthly
Installment (EMI).
 Credit linked subsidy would be available for housing loans availed for new
construction and addition of rooms, kitchen, toilet etc. to existing dwellings as
incremental housing.
 The carpet area of houses being constructed under this component of the mission
should be upto 30 square meters and 60 square meters for EWS and LIG,
respectively in order to avail of this credit linked subsidy. The beneficiary, at his/her
discretion, can build a house of larger area but interest subvention would be limited
to first Rs. 6 lakh only.
 Housing and Urban Development Corporation (HUDCO) and National Housing Bank
(NHB) have been identified as Central Nodal Agencies (CNAs) to channelize this
subsidy to the lending institutions and for monitoring the progress of this
component. Ministry may notify other institutions as CNA in future. Primary Lending
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 Institutions (PLIs) can register only with one CNA by signing MoU. Bank has
executed MoU with National Housing Bank.
 State/UTs/ULBs/PLIs shall link beneficiary identification to Aadhar, Voter card, any
other unique identification or a certificate of house ownership from Revenue
Authority of Beneficiary‟s native district to avoid duplication.
 Preference under the Scheme, subject to beneficiaries being from EWS/LIG
segments, should be given to Manual Scavengers, Women (with overriding
preference to widows), persons belonging to Scheduled Castes/Scheduled
Tribes/Other Backward Classes, Minorities, Persons with disabilities and Transgender.
 State Level Nodal Agency (SLNA) identified by State/UT for implementing the mission
will facilitate the identified eligible beneficiaries in getting approvals and documents,
etc. to avail of credit linked subsidy.
 For identification as an EWS or LIG beneficiary under the scheme, an
individual loan applicant will submit self-certificate/affidavit as proof of
income.
 In case a borrower who has taken a housing loan and availed of interest subvention
under the scheme but later on switches to another PLI for balance transfer, such
beneficiary will not be eligible or claim the benefit of interest subvention again.
 Under the Mission, beneficiaries can take advantage under one component only.
Since other three components are to be implemented by State Government through
Urban Local Bodies/Authorities etc. and this component is to be implemented by
PLIs, therefore, in order that beneficiaries do not take advantage of more than one
component, PLIs should take NOCs quarterly from State/UT Governments or
designated agency of State/UT Governments for the list of beneficiaries being given
benefits under credit linked subsidy. For enabling this process, the beneficiaries
should be linked to his/her Aadhar/Voter ID Card/Any other unique identification
Number or a certificate of house ownership from Revenue Authority of Beneficiary‟s
native district and State/UT Government or its designated agency should furnish the
NOC within 15 days of receipt of such request.

The eligible loan amount would be assessed by the Bank on the basis of cost of the
project, income criteria and repayment capacity etc of the borrowers as per regular
existing guidelines of our Home Loan.

The following details details/formats for the scheme are given as Annexures:

Annexure 36 (a): Application form for Home Loan under PMAY

Annexure 36 (b):Documents to be submitted along with application for Home Loan
Annexure 36 (c) : Format for self declaration / Income proof
Annexure 36 (d): Detailed Guidelines of the scheme received from Ministry of Housing &
Urban Poverty Alleviation, Govt. of India.

Page | 78
 Steps in Credit Linked Subsidy Scheme:

Self-certificate/
Individual Home affidavit as proof of
Loan Application income

Directly or through the ULB or the local

agencies identified by the State/ULBs

Bank

Quarterly information of
Beneficiary with
Aadhar/Voter ID/Any unique
identity No. or a certificate of
Decision on Loan
house ownership from
(EWS- carpet area
Revenue Authority of
30sqm/LIG EWS-
Beneficiary’s native district
carpet area 60 sq.m)
Number to SLNA or
Dedicated agency for
validation

- Sanction of Loan upto Rs.6 Lakhs

Validation of Beneficiary
with Credit Linked Subsidy (@6.5%)
and Loans beyond Rs 6 Lakhs at
normal interest rate.
- Interest subsidy calculated on NPV
basis at a discount rate of 9%
Funds from Gol to CNA
-advance subsidy will be released
to each CNA at the start of the
PLIs (Bank) submitting Claims to scheme
CNA -Subsequent amounts after 70%
utilization

Approval of Claims by CNA

CNA will release the subsidy amount
to PLIs (Banks) directly based on the
Credit the Subsidy amount by PLI claims submitted on the total loans
(Bank) in Loan account of Beneficiaries disbursed
Annexure- 1

Page | 79
Annexure-1: GROUP CREDIT LIFE INSURANCE FOR HOME LOAN BORROWERS

Bank of Baroda is having tie-up arrangements with M/s. India First Life Insurance Co. & M/s.
Kotak Life Insurance for providing Life Insurance Cover to our Home Loan borrowers.

This is an optional Scheme of Life Insurance and is at the cost of borrower which may be
funded by the Bank at the time of sanction and is recoverable with the EMIs of the Loan.

The Scheme is available for existing Home Loan accounts also, where flat cover/reducing
cover is provided for outstanding balance in the account as on the date of obtaining cover
and for remaining tenure of the loan. In such cases borrowers are required to pay the
amount of premium from their own sources upfront and no finance is available from the
Bank.

The Insurance Companies have separate policy to cover new Home Loans (Reducing Cover)
and to cover existing Home Loans (Flat cover), if the existing borrower is interested to cover
his loan under reducing cover, he can avail the same under reducing cover.

The salient Features of the Group Credit Life Policy offered by M/s.India First Life
Insurance Co. & M/s. Kotak Life insurance as under:

 It is an optional scheme for the benefit of Home Loan borrowers and the borrower will
be given an option by the branches to choose the insurance provider between
IndiaFirst Life Insurance and Kotak Life Insurance as per his choice.

 It is a group insurance scheme, which protects against unforeseen consequences of

death of borrower.

 Family of the borrower is not required to repay the loan to the extent of claim settled
amount, in case of death of the borrower.

 Outstanding cover amount due, will be paid by insurance provider as per cover
schedule.

 Slippage of the account into NPA category due to death of the borrower can be
avoided.

 Life cover is available against payment of one time premium and amount of premium
is based on the age of the borrower, amount of loan, Interest rate and tenure of the
loan.

 Premium amount for obtaining the cover can be financed as part of loan at the request
of borrower and accordingly EMI will be calculated. But in case of Home Loans
guidelines regarding compliance of LTV Ratio must be strictly ensured.

 Premium amount may be part of the Loan as per total eligibility of the borrower may
be funded by the Bank at the time of sanction and is recoverable with the EMIs of the
Loan.

 In case of foreclosure of loan, certain portion of premium paid shall be refunded by the
insurance provider (As per the surrender value formulae, which is given below:

Page | 80
 (a) By Kotak Mahindra:

Surrender Value = 75% × Single premium × (Outstanding Cover Term/Cover Term) ×

(Outstanding Amount/Total Amount) - processing charges

(b) By India First

The borrower can continue the cover till the end of the term as mentioned in the
Certificate of Insurance (COI)

(OR) refund as under

Decreasing Sum Assured Level Sum Assured

Single premium 40% x Premiums Paid X

Unexpired Term* X
Total Term
Reduced Sum Assured *
Initial Sum Assured

 Claim in the event of death, will be settled as per cover schedule and excess amount
deposited over the stipulated schedule, if any, shall be refunded to the nominee of the
borrower.

 Hassle free claim settlement process.

 Co-borrower can be covered on payment of premium by policy of M/s. India First Only.
Only principal borrower is to be covered under the scheme in case of joint accounts by
policy of M/s. Kotak Life Insurance.

DETAILED FEATURES OF THE SCHEME:

This is a Single Premium reducing cover product with following features-

Age at Entry: Minimum - 18 Years

Maximum - 65 Years (Kotak Life Insurance)
- 69 Years (IndiaFirst Life Insurance)

Maximum Ceasing Age: 75 years (Cover will cease once member attains this age)

Age: Age is defined as the age of the member on his/her last birthday (as per English
Calendar) immediately before the date of commencement of cover for that member.

Term: Equal to loan term subject to Minimum 3 years (Kotak Life Insurance)
Minimum 2 years (India First Life Insurance)

Life Cover: Outstanding (O/s) principal loan amount at the time of death as per the Cover
Schedule provided by Insurer Any shortfall in coverage of amount due to increase in
interest rate , restructuring of account or over dues in the account have to be

Page | 81
borne by the claimants / legal heirs of the borrower only and such shortfall will
not be the liability of Insurance provider.

Life assured: Life assured is the loan borrower/s of who has / have been given the cover
under the plan.

Policy Contract: Will be in the name of BOB

Documents to be obtained from the borrower:

The following documents are necessarily to be obtained from the borrower and be kept
safely with the Loan documents which may be required to be submitted with the death claim
form in case of death of the insured borrower:

1. Consent cum Authorization Form

2. Declaration of Good Health form duly filled and signed by the insured borrower
3. Documentary proof of Date of Birth
4. NOC from the joint borrower/s in case of joint accounts

Role of BOB as Group Manager:

The Bank will act as Group / Manager or Nodal Agency for and on behalf of members in all
the matters relating to the scheme and every act done by, agreement made with and notice
given to the insurance provider by the Bank / Group Manager shall be binding on the
member borrowers. The group Manager / Bank shall furnish to Insurance Provider the
relevant data /particulars of the members as and when required in connection with the
administration of the scheme through MIS format as enclosed. This may include Health
Status (DOGH), Evidence of Age and Risk Coverage, Exclusions if any and termination of
assurance Cover.

Benefit to the Borrower / Family:

 Shield against future liabilities on account of accidental / natural death of the

borrower.
 The family members of borrower are relieved from financial hardship due to
immediate payment of dues under the loans.
 Hassle free process to join the scheme.
 There is no immediate extra financial burden on the borrower to pay the premium as
the same can be financed by the bank and EMI may be increased accordingly.

Cover Commencement:

The cover shall commence from the date of premium payment with Bank of Baroda. The
cover commencement date for borrowers under the medical category will commence once
the underwriting decision is communicated by Insurance provider to BOB. This Date shall
not be earlier than the Policy Effective Date or the actual commencement date of the loan
with the Policyholder, after its approval, whichever is later.

All the medical costs will be borne by Insurer.

In case medical facilities are not available, Insurer shall arrange for a home visit for the
client and the cost for the same will be borne by Insurance Provider.

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Scope of the Policy and Persons Covered:

This Group Credit Life Insurance Scheme covers the loan borrowers who have attained the
age of 18 years and who have been granted Home Loan by Bank of Baroda against the
payment of premium.

Cover will be available against the submission of Simple Declaration /Declaration of Good
health (DOGH) as being done hitherto and all existing formats to be used for the
purpose or to undergo medical tests and to submit a Medical Questionnaire provided by
Insurance Provider depending upon amount of cover and age of the borrower.

Premium – Calculation and Payment thereof:

 Premium is one time premium.

 Premium will be payable in advance for the loan amount and tenure of loan
Premium shall be calculated as per premium calculator table provided by respective
Insurance Provider.

Issue of Certificate of Insurance:

Certificate of Insurance (COI) along with the Cover Schedule (CS) shall be provided by the
Insurance Provider for all members accepted in the cycle on receipt of premium.
Certificate of Insurance (COI) is available from IndiaFirst Life Insurance also through a web
link http://www.indiafirstlife.com/DAP/iflUser.htm?role=4

Claim settlement in the Event of Death:

In the event of death of a customer, the claim amount shall be the outstanding cover as per
cover schedule on the date of death. The concerned branch must intimate the insurer over
email id about any death under the scheme within 3 months from the date of death
having occurred with all supporting documents required for processing the claim. Claim
Form provided with our earlier circulars referred above by the respective
insurance providers shall be utilized for Car Loans and Personal Loans also.. MIS
in respect of Claims shall be submitted as being done hitherto.

The following documents shall be submitted along with Claim Form:

a) Copy of COI with CS

b) Original DOGH.
c) Photocopy of the self attested age proof
d) Original death certificate issued by Municipal or other Competent Authority
Last attending doctor‟s certificate stating the exact cause of death
(In case original death certificates cannot be provided for any reason, copy of death
certificate duly attested by the branch manager shall be furnished)
e) Letter from the policy holder i.e. Bank of Baroda and Declaration from nominee
f) Nominee relating proof and photo id proof
g) If death has occurred in a hospital, all case history papers.
h) If the death is due to an accident or any other unnatural cause:
 A certified copy of the FIR filed with the Police authorities.
 A certified copy of the Post Mortem Report/Autopsy Report.
 A certified copy of the Driving License, if death occurred while driving.

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The claim can be lodged at the concerned branch and the branch in turn will inform to
insurer and comply with further documentation requirements as mentioned in the policy
contract.

Alternatively, the claims can be lodged at IFLIC‟s/KLIs office at the following address,
within the above mentioned time limits:

INDIAFIRST LIFE INSURANCE KOTAK LIFE INSURANCE

Group Operations Group Operations

IndiaFirst Life Insurance Company Kotak Mahindra Old Mutual Life
Ltd. Insurance Ltd.
301, B wing, The Qube, 7th Floor , Zone 4
Infinity Park, Building No. 21, Infinity Park
Dindoshi – Film City Road, Near Nagari Nivara Hsg. Society
Malad East, Mumbai 400097 Off, Western Express Highway
Goregaon Mulund link Road,
Malad (E) Mumbai 400097

e-mail address e-mail address

[email protected] [email protected]

Exclusions in the coverage:

Any claim arising as a result of the said member under the policy committing suicide
(whether being a sane or insane at such time) within one year of commencement of his/her
cover will be disallowed.

Premature Payment of Loan:

In case of prepayment of loan, certain portion of the premium for the unexpired term shall
be refunded to the borrower. Information in this regard shall be submitted as being done
hitherto.

Procedure to be adopted at Branch Level:

 This is an optional scheme for the Loan borrowers to have life insurance cover where
one time premium is paid by availing loan from the Bank repayable in EMIs along
with normal EMIs of the Loan.

 Branch has to obtain Consent cum Authorization Form from the borrowers for
obtaining the Group Insurance Cover as per draft enclosed - Annexure – II.

 Branches will be required to obtain Declaration of Good Health (DOGH) or

Medical Questionnaire and Medical Test as the case may be from the
member borrower for cover amount as per prescribed formats.

Page | 84
  Copy of Declaration of Good Health (DOGH) or Medical Questionnaire and
Medical Test as the case may be from the borrower should be kept on
record for future reference.

 Branch to maintain a record of members covered under the Insurance Plan detailing
Date of Start of Cover, Name of Borrower, Amount of Insurance, Date of Birth,
Period, Date of expiry of Cover, Premium amount Paid and date of credit in
Insurance Co.‟s A/c, Transaction Reference No. All these information will be
required to be provided in MIS to be submitted to Insurer by the branches
through their Regional Offices in the format as per existing practices.

 Branches shall deposit the Premium Recovered from the borrower to the following
accounts:
 A/c No. 12470200000937 of IFLIC
 A/c No. 29040200000131 of KLI for Home Loan (New & Existing) A/cs

As the case may be, on the very day of first disbursement of the loan

 Premium is to be calculated as per Premium Calculator of the respective Insurance

Provider.

 On joining the Scheme, a Confirmation of application shall be issued by the

Collecting Branch to the borrower, duplicate of which should be preserved for future
reference as being done hitherto.

 In the event of death of a member, the Branch will be required to obtain a letter of
information from the nominee, to fill a simple claim form being used presently and
forward the same along documents as detailed under the head “Claim Settlement in
case of death”.

 After receipt of claim cheque by the branch, the amount of claim shall be utilized for
liquidating the Loan a/c of the deceased. If the sum exceeds the outstanding loan,
excess sum shall be paid by the branch to the nominee of member concerned. In
case, the claim amount falls short to liquidate the loan amount, the balance amount
shall be required to be liquidated by the guarantor / legal heirs of the borrower.

Clarification/assistance by Insurance Co
 For any clarification / assistance, you may contact

M/s. India First Life Insurance:

BDM & GH of India First mapped to Branch
Toll Free No. : 18002095700
For escalation:
Mr. Sudhir Singh : 09819896167
: [email protected]
M/s. Kotak Life Insurance:
Mr. Jitendra Chowdary : 022 64510452
Ms. Heena Dudhwadkar : 022 66057007

For escalation: Mr. Sandeep Mirchandani (National Relationship Manager)

: [email protected] Mobile: 09820154834

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Annexure- 1 (A)

List of valid age proofs:

 Birth Certificate

 School / College Leaving Certificate, provided – it specifies Date of Birth, States that
Date of Birth is extracted from School / College Records, Stamped and signed by
College / School

 Passport

 Driving license

 PAN Card

 Ration Card, which specifies the Date of Issue of the Ration Card and the Date of
Birth or Age of the Life to be Insured

 Election ID card (also called voters ID) issued by the Election Commission of India
can be accepted as valid age proof provided it was issued at least 2 years before the
date of the insurance proposal.

 Extract from service register in case of:

 Government and semi-government employees

 In case of defense/central government/ state government personnel, identity card

issued respectively by the defense department /central government/ state
government to their personnel showing, inter alias, the date of birth or age

 Marriage certificate in the case of Roman Catholics issued by Roman Catholic Church

 Domicile certificate in which the date of birth stated was proved on the strength of
the school certificate or birth certificate.

Page | 86
ANNEXURE – 1 (B)

Draft Consent - cum - Authorization Form for Group Insurance Scheme

The Chief / Sr./ Branch Manager

__________________________

Dear Sir,

Re: Application for membership of _________________________Scheme

1. I, Mr/Mrs. ______________________________________________________
have obtained a sanction for availing the Home Loan, hereby give my consent to
become a member of the IFLIC/KLI Group Insurance Scheme, which will be administered
by Bank of Baroda as Group Manager.

My details are as below:

Name (in capitals): Shri / Smt. / Kum ___________________________________

Date of Birth : __________________(DD/MM/YYYY)
Age (as on last Birthday) as on date ___________ years
Limit sanctioned Rs. ______________EMI Rs.____________
Insurance cover obtained for Rs. _____________________
(Cover to be obtained for limit sanctioned limit)
Premium Amount :Rs.______________________
Rate of Interest :_________________ Loan Term:_______________

2. I hereby authorize you to debit my Loan account No. _____________________

a sum of Rs. _____________ (Rupees____________________________ only) with
your branch towards the one time single premium.

* The same can be recovered from my Savings Account No. ___________

* Please include the premium amount as part of the Loan amount and fix
up the Equated Monthly Installments (EMIs) accordingly and debit the premium
from my loan account.
Strike out whichever is not applicable.

3. I agree that in the event of my unfortunate demise during the pendency of the loan,
India First Life Insurance (IFLIC) /Kotak Life Insurance (KLI) will be sole authority
to consider the claim. IFLIC/KLI may settle the claim amount as per their rules to
the extent of the outstanding schedule of indebtedness as on the anniversary
preceding the death, in favour of the bank. These benefits will be utilized towards
the liquidation of the loan amount under the loan provided by the bank. In the event of
any surplus arising out of the benefits settled by Insurer after liquidating the
outstanding amount, I nominate

Sh./Smt./Kum___________________________________________________________
who is my____________________ (relationship) as the nominee to receive such
surplus amount.

4. I agree to pay the full premium at inception even though the full loan amount will be
disbursed by the bank only in phases.

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5. I agree to abide by the terms and condition of the above scheme.

6. I agree to your conveying the above particulars regarding my admission into the
group insurance scheme to IFLIC/KLI.

No Objection Certificate from co-borrowers (if any) :

I/We, 1.______________________________ 2.__________________________________

do not have any objection to Sh./Smt.___________________________

a) Joining the Group Insurance Scheme mentioned above and

b) One time single premium being debited to the Home Loan Account.

( )
Signature of the borrower

Place:
Date:

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Annexure – 2: PERSONAL ACCIDENT INSURANCE & PROPERTY INSURANCE
REVISED SCHEMES w.e.f. 10.09.2012.

The detailed guidelines of

(I) Baroda Home Loan Group Personal Accidental Insurance Policy (Free)
and
(II) Baroda Home Loan Property (Standard Fire & Special Perils) Insurance Policy
(at the cost of Borrower)

Applicable to Home Loan Borrowers, who have been sanctioned Home Loans on or after
10.09.2012, including Additional Assured Advance (AAA) are given under.

I. BARODA HOME LOAN GROUP PERSONAL ACCIDENT INSURANCE POLICY.

Bank has obtained a Group Personal Accident Insurance Policy with National Insurance
Company Limited to cover Bank‟s Home Loan borrowers (including joint/co-Borrowers also)
to whom Loans have been sanctioned / disbursed on or after 10.09.2012. Thus, Bank's
Home Loan borrowers, who have been sanctioned Home Loans on or after 10.09.2012,
including Additional Assured Advance (AAA) to existing borrowers, are covered under the
policy.

The salient features of the scheme are as under:

1. Eligibility: All Home Loan Borrowers (Residents/NRIs/PIOs) who have been sanctioned
Home Loans on or after 10.09.2012 are covered under a Master Group Personal Accident
Policy obtained by the Bank from National Insurance Company Ltd. The policy also covers
Joint / Co-Borrowers. The loans sanctioned under Additional Assured Advance (AAA) scheme
on or after 10.09.2012, including “AAA” loans sanctioned to existing borrowers whose Home
Loans were sanctioned before 10.09.2012 are also covered under the policy.

2. Coverage: Accidental death & Permanent Total Disability of the Borrowers as under:
The Policy covers individuals for injuries arising solely and directly out of accidents leading to
loss of life or Permanent Total Disablement as mentioned below:-

(A) Death due to accident:

The amount payable will be 100% of capital sum insured, which is the amount outstanding
in the loan account of the Borrower.
(B) Permanent Total Disability:
For the purpose of permanent total disability, the definition set in the policy is as under:

(i) If such injury shall within 12 calendar months of its occurrence are the sole and direct
cause of the total and irrecoverable loss of:

a. Sight of both eyes or the actual loss by physical separation of two entire hands or two
entire feet or one entire hand and one entire foot or of such loss of sight of one eye and
such loss of one entire foot or one entire hand. The amount payable will be 100% of capital
sum insured, which is the amount outstanding in loan account of the Borrower.

b. Use of two hands or two feet, or loss of one hand and one foot or such loss of sight of
one eye and such loss of use of one hand or one foot. The amount payable will be 100% of
capital sum insured which is the amount outstanding in loan account of the borrower

Page | 89
(ii) Apart from what is stated above, if such injury shall as a direct consequence thereof
permanently, totally, and absolutely disable the borrower from engaging in any employment
or occupation of any description whatsoever, the amount payable will be 100% of capital
sum insured, which is the amount outstanding in loan account of the borrower.

3. Amount outstanding: The amount outstanding in the Borrower‟s Home Loan account
will include the Principal, interest, additional penal interest, charges and any other amount
due and payable by the Borrowers as on the date of the accident leading to loss of life or
permanent total disablement of the insured borrower.

4. Policy Period: 31.12.2012 to 30.12.2013 for first policy, after which the policy will be
renewed by mutual agreement between both the parties year after year. Retail Banking
Department has renewed the policy initially up to 31.12.2014. The policy is being renewed
at Corporate Centre on annual basis.

It will cover all Home Loans sanctioned on or after 10.09.2012 including “AAA” loans
sanctioned to existing borrowers.

5. Commencement of Risk Cover: The risk cover will incept from 31.12.2012.

6. Sum Insured: The amount insured under the Master Policy being the total amount
outstanding under the loans sanctioned on or after 10.09.2012 by Bank as on the date of
inception of the policy (and the time to time outstanding under the same irrespective of the
amount of loan advanced) plus the projected Home Loans to be disbursed by Bank during
the period of one year from the inception of the policy and the time to time outstanding
under the same (irrespective of the amount of loan advanced). In respect of renewals also
sum insured shall be calculated accordingly.

The sum insured in respect of an individual borrower/s shall be the total amount
outstanding as on the date of accident leading to loss of life or permanent total disablement
of the insured Borrowers in the loan account of each borrower irrespective of Home Loans
advanced by Bank as explained above. The amount outstanding in the borrower/s Home
Loan account including the Principal Interest, additional penal interest, charges and any
other charges incidental to and arising out of the Home Loan provided.

In case of Joint borrowers also, the cover shall be up to the full extent of the
outstanding amount. (Circular No.BCC: BR: 107/107 dated 04.03.2015).

7. NICL Underwriting Office: NICL will provide the insurance cover through its office at
Mumbai Divisional Office: VII, Bharat House, 104 Mumbai Samachar Marg, Fort, Mumbai
400023.
8. Claims: The claims shall be lodged by the concerned branch directly with NICL in the
form and manner as mentioned below under advice to Retail Banking Department, Baroda
Corporate Centre, Mumbai.

In the unfortunate event of the accidental death or permanent total disability of

the Borrower/s, the following documents/details (as applicable) are to be
forwarded to NICL by concerned Branch:
Immediate intimation is to be given to the underwriting office viz. NATIONAL
INSURANCE COMPANY LIMITED, MUMBAI Divisional Office VII, BHARAT HOUSE,
104 MUMBAI SAMACHAR MARG, FORT, MUMBAI 400023 normally within thirty
(30) days by the concerned Branch.

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The following documents are to be submitted normally within next thirty - (30) days:

(In all cases where any documents are in vernacular language, a duly notarised
English translation of the same must be submitted.)

~ Duly filled in claim form (Annexure I).

~ Loan Agreement Copy
~ Loan Sanction Letter
~ Post-mortem report from the Hospital in the case of accidental death.
~ Death certificate from the Government Authorities.
~ Legible and certified FIR / Panchnama with translation in English (Certification by
Police and translation in English to be attested by Notary)
~ Inquest report (In States wherever applicable)
~ In case of disability, attested full photograph of person showing the disability
(Attestation can be by Bank‟s Branch official)
~ Doctor‟s certificate confirming irrecoverable loss of eye sight / loss of limbs.
~ Permanent total & absolute disability certificate from the Hospital/Doctor/Medical Board
(in respect of cases falling under Para (ii) of annexure)
~ Certificate from concerned Branch indicating the following details:-

A) Name of Borrower/s
B) First date of disbursement of Loan
C) Computerised Loan Outstanding balances as on date of event.
D) In case of joint borrowers account, pro-rata outstanding balance is to be shown / claimed

If the documents (FIR, Panchnama, Post mortem and Inquest report) are not submitted in
the original, copies of the same duly verified by the Branch official to be sent. Other
documents are to be submitted in original only and are to be duly attested by the Authorized
Official of the Bank.

Upon submission of the said documents by the claimants/heirs/borrower to Branch, the

respective Branch where the borrower maintains the Home Loan Account, shall forward the
same to the NATIONAL INSURANCE COMPANY LIMITED, MUMBAI DO VII, BHARAT
HOUSE, 104 MUMBAI SAMACHAR MARG, FORT, MUMBAI 400023 for settlement
of the claim. Subject to the documents being found in order, NICL shall pay the amounts
claimed in accordance with the policy as under, directly to the said branch of Bank after
receipt of all documents.

NICL agrees that the Certificate issued by the concerned Branch of the Bank is based on
banking system , as regards the claim amount/amount due under the loan shall be final and
binding on NICL and shall not be disputed. NICL shall pay all claims directly to branch in
respect of claims under the Master Policy document irrespective of any dispute/claim raised
by the borrower/any other person.
9. Procedure to be adopted at Branch Level:

The Bank has obtained Master Group Personal Accidental Policy for Home Loan Borrowers
including joint/ co borrowers to cover Personal Accidental Death and Permanent Total
Disability and its premium shall be paid by the Retail Banking Department, BCC, Mumbai on
an annual basis. Branches are advised not to pay any insurance premium towards
Group Personal Accident Insurance Policy at branch level

Page | 91
II. BARODA HOME LOAN PROPERTY (STANDARD FIRE & SPECIAL PERILS
INSURANCE POLICY:

The freebie for providing free property insurance was withdrawn w.e.f. 10.09.2012.
However, getting insurance cover for the property against fire and other perils is
necessary to protect the interest of both Borrower as well as the Bank.

With a view to have a uniformity and also to have property insurance cover at uniform and
reasonable premium, it has been decided to go for a tie up arrangement with National
Insurance Company Ltd, Mumbai Divisional Office, who will issue property insurance policy
(Standard Fire & Special Perils) at a concessional premium. Moreover our Bank will be
eligible to get usual commission on the amount of premia under Bancassurance.

The salient features of the policy as under:

1. Risk coverage:

i. Covers “Property” i.e. the flat/house purchased with the Bank‟s financial
assistance and mortgaged to Bank.

ii. Policy covers losses due to Fire, Lightening, Explosion/Implosion, Aircraft Damage,
Riot, Strike & Malicious Damage, Impact Damage, Subsidence & Landslide
including Rockslide, Bursting & / or Overflowing of water Tanks, Apparatus and
Pipes, Missile testing Operations, Leakage from Automatic Sprinklers Installations,
Bush Fire, Earthquake, Storm, Tempest ,Flood and Inundation.

iii. Lost on account of Terrorism is excluded.

2. Sum Insured:
i. The policy to be taken for the total cost of House excluding cost of land and
in case of flats, full cost of flat be considered.

ii. Amount insured shall be the amount of loan sanctioned & disbursed for
construction & finishing of house/ acquiring the flat or cost of the house
(excluding cost of land)/ flat whichever is more.

3. Period of Policy:

The period of policy will be of minimum 3 years and maximum 30 years.

4. Premium – Calculation and payment thereof:

i. Premium will be payable in advance as per terms of the loan (for a maximum
period of 30 years.)

ii. The premium rate shall be as per chart enclosed herewith (Annexure – II)
Premium is exclusive of service tax.

iii. Branches may counsel the Borrowers to prefer for payment of one time premium
to cover the property insurance. Also borrower has option to obtain
insurance cover from any other insurance company of his choice at his
own risk.

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 iv. The premium rate is subject to change as may be required / warranted by statute
or revision of tariff. In that case revised chart will be provided to branches.
v. The Branch will pay the premium amount inclusive of service tax to the
debit of borrower account.

5. Refund of premium in case of foreclosure of Loan:

No refund is allowed for mid-term cancellation of the policy.

6. Insurance Company‟s liability:

i. The liability of NICL will be as per the preamble of the policy in accordance with
the terms & conditions.

ii. Branches are advised to submit their proposal(s) to the Nodal office of NICL at
following address at Mumbai:

National Insurance Company Ltd.

Divisional Office VII,
Bharat House, 3rd Floor,
104, Mumbai Samachar Marg, Fort
Mumbai - 400023

7. Procedure to be adopted at Branch level:

The responsibility of taking the insurance under the scheme is that of the Branch where
the account is parked. The Branch has to adopt following procedure:

i. The Branch after executing the documents and on making first disbursement on
the day of first disbursement will send the proposal in prescribed profarma
(Annexure -II) to the Nodal Office of NICL at Mumbai as mentioned at point no 6
(ii) and remit the premium through RTGS / NEFT in favour of National Insurance
Co. Ltd., in the following account :

Name of Bank : BANK OF AMERICA

Branch : MUMBAI
Account No. : NATIONAL9926150000
Type of Account : CURRENT
IFSC Code : BOFA0MM6205 (revised from Aug 2016)
Name of Account Holder : NATIONAL INSURANCE COMPANY LTD

Service Tax No. : AAACN9967EST099

Pan No. : AAACN9967E

ii. Proposal (Annexure-2 B) and Premium payment will be sent to the Nodal office
of NICL by Regd. A.D. or if the office is locally situated, through messenger
against proper acknowledgement.

iii. The Nodal office of NICL will issue a policy and send it to concerned Branch.

Page | 93
 iv. If policy is not received within 10 days, Branch has to follow up with the Nodal
office of NICL.

v. Upon receipt of policy, Branch should check the details of the policy viz. Name of
the insured, Bank clause, Amount and Period of the policy etc. and record the
details in insurance register as per extent guidelines.

vi. Insurance policy is to be kept properly along with loan documents and it should be
preserved till the account is liquidated.
vii. Responsibility to take insurance cover will be that of the Branch.

viii. In the event of any claim, the same should be submitted to the Nodal office of
NICL to whom the premium was sent with claim form and required certificates
within 15 days. On receipt of the claim amount, the same should be appropriated
towards the loan account.

For any clarification, Branches may contact following Relationship Managers of

National Insurance Co. Ltd:

Mr. Pradeep Chettiar, Administrative Officer Phone No.: 022 -22673692

22670419
22673772
Mr. M.S. Prasana, Senior Assistant Fax No: 022 - 22675149
E Mail : [email protected]

Please note that Home Loans sanctioned prior to 10.09.2012, will continue to be
covered under “Baroda Home Loan Suraksha Beema” Scheme for coverage of risk
viz Property Insurance and Personal Accident. Branches should ensure
compliance of Baroda Home Loan Suraksha Beema guidelines as mentioned in
Annexure - 3

However, please ensure that all Home Loans sanctioned on or after 10.09.2012 are provided
with property insurance cover for Standard Fire & Special Perils as mentioned above. In case
any of the Branches have not taken the property insurance cover in respect of Home Loans
sanctioned on or after 10.09.2012, they should get the property insurance cover forthwith at
the cost of the Borrower. The property insurance cover from National Insurance co. Ltd as
mentioned above is with a view to maintain uniformity and also to give the benefit of
concessional premium to our customers. However, Borrowers may opt to obtain
property insurance cover from other insurance company in conformity with our
Bank‟s requirement

Page | 94
Annexure 2(A)

Page | 95
Page | 96
Page | 97
Annexure- 2(B)

NATIONAL INSURANCE COMPANY LIMITED

(A GOVT. OF INDIA UNDERTAKING)

PROPOSAL FORM FOR STANDARD FIRE & SPECIAL PERILS POLICY

BANK OF BARODA ( HOME LOAN BORROWERS )

NAME OF INSURED &

CORRESPONDENCE
ADDRESS

HYPOTHECATION DETAILS
/ BANK OF BARODA
BRANCH ADDRESS

LOCATION OF RISK &

ADDRESS

OCCUPATION

PERIOD OF INSURANCE FROM :________________ TO:_______________

ADD – ON COVER
EARTHQUAKE YES
STROM/TEMPEST/FLOOD/INNUNDATION YES
(STFI)

TOTAL SUM INSURED :

PREMIUM PAYMENT DETAILS

1. PREMIUM AMOUNT RS:

2. RTGS / NEFT URT NO : _________________

3. DATE OF REMITTANCE :

4. BOB BRANCH ADDRESS :

Declaration by Insured

I / We hereby declare that the statements made by me / us in this proposal are true to the
best of my / our knowledge and belief and I / We hereby agree that this declaration shall
form the basis of the contract between me / us and the „NATIONAL INSUANCE COMPANY
LTD.‟

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 If any additions or alterations are carried out in the risk proposed after the submission of
this proposal form.

Date :
Place :

Signature of Proposer

PREMIUM CHART (RATE PER LAC)

Sr. Loan Tenure Premium

No. (with
commission)
01 1 YEAR 50.00
02 3 YEAR 91.00
03 4 YEAR 117.00
04 5 YEAR 140.00
05 6 YEAR 161.00
06 7 YEAR 179.00
07 8 YEAR 195.00
08 9 YEAR 209.00
09 10 YEAR 220.00
10 15 YEAR 286.00
11 20 YEAR 380.00
12 25 YEAR 476.00
13 30 YEAR 570.00

NB: Service Tax is chargeable on the above premium as per the rate applicable.

Scope of Cover As per Standard Fire & Special Perils Policy

Extensions STFI & EQ only

Conditions:-
Policies to be issued to House/ Flat Owners only
Policy to be issued for Minimum Period of 3 years
No Refund to be allowed for Mid-term cancellations
Midterm inclusion of Add On covers not to be allowed
Premium to be collected in advance for the entire policy period
Basis of Indemnity: Market Value i.e. Depreciated value

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Annexure-3:
BARODA HOME LOAN SURAKSHA BIMA
(Applicable for Loans sanctioned up to 09.09.2012)

(Offering FREE Property and Personal Accident insurance cover)

Baroda Home Loan Suraksha Bima is operationalized w.e.f. 1st April 2005. All the
Home loans sanctioned/ disbursed on or after 01.04.2005 are to be insured under the policy
with National Insurance Co .Ltd.

The salient features of the scheme are as under:

1. Scope of the Policy:

Free insurance will be offered to all Home Loans to individuals sanctioned under Direct
Housing Finance Scheme and BOB Rural Housing Finance Scheme.

2. Effective Date:
All fresh Home Loans sanctioned and/or first disbursed on or after 01-04-2005.
Additional loans i.e. Loan for Repairs, Renovation and extension of house, AAA
etc. are not covered under the scheme.

3. Risk coverage:
a. Section I
i. Covers “Property” i.e. the flat/house purchased with the Bank‟s financial
assistance and mortgaged to Bank.
ii. Policy covers losses due to Fire, Lightning, Explosion/ Implosion of gas in
domestic appliances, Aircraft damage, Riot, Strike, Malicious damage, Storm,
Tempest, Hurricane, Tornado, Flood, Cyclone, Typhoon, Inundation,
Earthquake fire & shock, Impact damage, Subsidence and Landslide including
rockslide,
Bursting and/ or overflowing of water Tanks, Apparatus and pipes, Missile
testing operations.
b. Section II
(a) Personal Accident Death cover for the borrower(s)
(b) The term “Accident” also covers that if borrower shall sustain bodily injury
resulting solely and directly from accident caused by external and violent
means such injury should within 12 months of its occurrence be the sole and
direct cause of death of the borrower.
(c) Permanent total disablement is covered.
(d) The claim will not be payable in case of suicide, injury sustained under the
influence of liquor/ drugs and breach of law with criminal intent.
(e) First named borrower is covered at the cost of the Bank however; co-
applicant/s can also be covered by making additional payment of 25% (in
respect of each co-borrower) of the premium by the borrower.

4. Sum Insured:
a. The policy has to be taken for the Home Loan sanctioned.
b. Amount insured shall be the amount of loan sanctioned & disbursed for section 1
i.e. property and identical amount for section II. In case of Joint borrowers, the
sum insured for the risk as mentioned under section II i.e. Personal accident will
be divided equally amongst the borrowers.

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5. Period of Policy:

The period of policy will be the repayment period of the loan including
moratorium period as per sanction but in any case shall not exceed 25 years.

6. Premium – Calculation and payment thereof:

a. Premium will be payable in advance for the amount and tenure of the loan.
b. The premium rate shall be as per chart enclosed herewith (Annexure – 3 b)
Premium is inclusive of service tax.
c. For intermediate values the premium should be worked out on the basis of
premium rate as per Annexure – 3 c.
d. Premium is one time and covers both the risks i.e. section I and II ( Property &
Personal Accident insurance )
e. The premium rate is subject to change as may be required / warranted by
statute or revision of tariff. In that case revised chart will be provided to
branches.
f. The branch will pay the premium amount to the debit of its P/L Insurance A/c.

7. Refund of premium in case of foreclosure of Loan:

1. If borrower repays / liquidates the loan account before the due date, NICL will
refund the premium for un expired period on pro rata basis, subject to no claim
being made by the Bank in respect of the particular insured property or insured
person.
2. NICL shall pay the refund of the premium amount within 15 days from the date
of claim lodged by the Bank.
3. For this purpose, the branch has to make a simple request to the Insurance
Company‟s policy issuing office and also send original policy.

8. Insurance Company‟s liability:

a. The liability of NICL will be restricted to the least of the following (for property)
 amount outstanding as on the date of loss or
 actual loss assessed or
 sum insured whichever is the least.
b. For the purpose of „ amount outstanding‟ the amount that ought to have been
outstanding on the date of loss/accident, if the repayment schedule is adhered
to, has to be reckoned (excluding default amount )
c. Branches are advised to submit their proposal(s) to the Nodal office of NICL at
following address at Mumbai.

National Insurance Co. Ltd.

DAB – IX, 6th floor,
Sterling Cinema Bldg
65, Murzaban Street, Fort,
Mumbai – 400001

9. Procedure to be adopted at branch level:

The responsibility of taking the insurance under the scheme is that of the branch
where the account is parked. The branch has to adopt following procedure:
a. The branch after executing the documents and on making first disbursement on
the day of first disbursement will send the proposal in prescribed profarma
(Annexure 3-a) along with Demand Draft/ Banker‟s cheque for the amount of

Page | 101
 premium in favour of National Insurance Co. Ltd., payable at Mumbai to their
Nodal office at the above address. Premium is to be calculated as per Annexure
3 -b.
b. Proposal and Demand Draft/ Banker‟s cheque for the premium amount will be
sent to the Nodal office of NICL by Regd. A.D. or if the office is locally situated,
through messenger against proper acknowledgement.
c. The Nodal office of NICL will issue a policy and send it to concerned branch.
d. If policy is not received within 10 days, branch has to follow up with the Nodal
office of NICL
e. Upon receipt of policy branch should check the details of the policy viz. Name of
the insured, Bank clause, Amount and Period of the policy etc. and record the
details in insurance register as per extent guidelines.
f. Insurance policy is to be kept properly along with loan documents and it should
be preserved till the account is liquidated.
g. Responsibility to take insurance will be that of the Branch Head.
h. In the event of any claim, the same should be submitted to the Nodal office of
NICL to whom the premium was sent with claim form and required certificates
within 15 days. On receipt of the claim amount, the same should be appropriated
towards the loan account.
i. After settlement of claim in respect of only one type of risks i.e. property or
personal, if some balance remain outstanding in loan account the policy will
continue in respect of the other risk.

Page | 102
Annexure-3 (a)

Page | 103
Annexure- 3(b)

Page | 104
Annexure- 3(c)

Page | 105
Annexure- 3(d)

Page | 106
Annexure – 4

KNOW YOUR CUSTOMER (KYC) NORMS AND PREVENTIVE VIGILANCE

FOR HOME LOANS

Bank is advising through comprehensive guidelines time to time in respect of KYC norms and
preventive vigilance guidelines to make the operating units aware as to how frauds have
taken place in various banks / branches and how to be vigilant in preventing such type of
activities at branches.

All set norms should be strictly complied with, without negligence while processing Home
Loan proposals. The guidelines to be followed while appraising/ processing Baroda Home
Loan applications are given under:

1. KYC guidelines should be very meticulously and strictly complied with, which include
proper verification / cross checking of information submitted by the applicants for their
identity. Documents submitted for identity and proof of residence i.e. copy of ration
card/ photo-identity card/ PAN card/ driving license should be properly scrutinized and
also verified with the originals. Noting for having verified with the originals should be
made on relative documents and kept on record.

2. Pre-sanction inspection including visit to the place of residence and work as well as
property to be purchased, must be carried out independently, preferably without
giving prior information to the applicant.

3. Independent enquiries from the employer in respect of salaried person about

employment status and salary should be made. It will help in detection of cases of
fabricated salary / employment certificates as well as in ascertaining the actual income
of the applicant. A copy of latest salary slip should be obtained.

4. In case of applicants other than salaried persons, the original taxpayer‟s copy of
challans of tax deposited is verified to ascertain genuineness of Income Tax Returns
and also the assessment orders for earlier years. Home Loan proposals of the persons,
who have filed their income tax returns of last three years in one lot or if there is
major fluctuation in the amount of the tax deposited in the current year vis-a-vis
previous year should be accorded special attention.

5. Disbursement of Home Loan to be made by Demand draft /Bankers Cheque specially

crossed to the bank and in favour of Bank / Branch, A/c-No., Name of Builders /
Vendors / Suppliers along with a letter addressed to the vendor. Not to hand over the
Demand Draft / Bankers Cheque towards disbursement to the borrower.

6. Bank has introduced a system for outsourcing Chartered Accountants for verification of
income related papers viz. IT Returns, Income Tax Challans etc. You may therefore
assign the work of verification of income related papers to the authorized agency /
persons in consultation with Regional Offices.

7. Critical examination and satisfaction about the “Employment Status” of the applicant,
his/her/their source, continuity, consistency and sustainability of the income is very
essential. In cases, where the status of the employment as well as the employer is
doubtful, the branches should discourage considering loans to such persons. Income
of the applicants should be of regular, stable and verifiable nature.

Page | 107
8. No middlemen should be entertained for any credit proposal.

9. Our ASCROM Cell has devised Borrower-wise Search utility programme, which enable
branches in searching the name of the borrowers, who have availed credit facilities
from other branches. Therefore, if there is more than one branch at the center, the
branch should ensure before considering the loan application, that applicant is not
enjoying any retail loan from any other branch at the center.

10. Credit Bureau Report and CERSAI search report in respect of applicants/guarantor/s
should be meticulously verified. We have authorized branches, all Regional Offices,
Zonal Offices and allotted them user IDs to access CIBIL /EQUIFAX information on
borrowers. Therefore this facility should be used by the branches to cross check
borrowings from other banks. Branches not having user IDs may use this facility from
nearby branch /SMS/ Regional Office.

11. Wherever applicants are not maintaining their savings account with us, the branch
should obtain statement of principal account of the applicant, wherein salary is being
credited. The account should be critically/ properly analyzed to ascertain conduct of
the account and other existing liabilities of the applicant.

12. Credit rating in prescribed module relevant to the retail loan proposal should be carried
out in each case before taking credit decision.

13. The branches should in writing ascertain from the builder / vendor/ supplier the details
of his Bank, Branch and account number for the purpose of making payment on
disbursement of the loan amount directly to him. It has been observed that miscreants
generally opened accounts with small co-operative banks for fraudulent encashment of
the banker‟s cheques. Therefore, the branch managers may, over telephone, confirm
the antecedents of the builders and gather information about status and period of
account relationship etc.

14. The Bankers Cheque / Demand Drafts should be issued in favour of Bank Branch A/c
No. – Name of the builder/ vendor / supplier and should be directly handed over to
him. However, a request in writing should be obtained from the borrower before
making payment to the builder / vendor / supplier.

15. Title Opinion Report of the Advocate:

Search Report / legal opinion obtained about immovable property from Bank‟s
approved advocate should be exhaustive and complete, containing all vital points. The
Branch officials should carefully study the report received from the advocate and any
point affecting bank‟s interest may be probed in to. Equitable mortgage of immovable
property should be based on original title deeds only. All previous chain of title
documents and other papers suggested by bank‟s advocate should be obtained while
creating equitable mortgage on the property proposed as security.

 In order to ensure that panel advocate incorporates all vital points in his report
relating to the property offered as security such as non-encumbrance, marketability
and title of the property, the branches are advised to send letters to Advocates as
per model draft [Annexure -21(a)] while seeking his / her opinion.

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  Advocate should submit their Title Opinion Report [as per the format given in
Annexure-21(b)] inter-alia certifying non encumbrances of the property
considering all the relevant aspects which are essential for creation of valid and
enforceable mortgage to secure the Bank‟s advance. Reports which do not contain
the information on the points mentioned in the format must not be accepted.
However, the draft format is merely a checklist/ outline covering substantial
aspects which the advocate should address and is not exhaustive.

 Some of the important aspects in this regard is as under:

o The advocate should personally visit the office of Sub-Registrar/ Revenue

Authorities /Municipality and carry out searches. In this regard, the Advocate
should ensure and certify that the entries found in the records of the aforesaid
offices tally with the documents examined by him.
o It is the responsibility of SMS/Branch to furnish / make available all the original
documents of Title Deeds and evidences to the Advocate to enable him to
examine the same and certify that they are genuine and not fake.
o It is imperative that after the receipt of the Title Opinion Report from the
Advocate certifying the non encumbrances of the property, the branches are to
arrange the physical verification/ inspection / identification of the property
immediately and after the visit, the officer concerned should prepare his report
with the sketch / photographs for future reference. It should be ensured that
description of the property along with boundaries tallies with that given in the
Title Opinion Report. This Report should be kept along with the Title Opinion
Report of the Advocate.

16. Besides, valuation report submitted by Govt. / Bank‟s Approved Valuer in respect of
immovable property, the Processing Officer or Asset Inspecting Officer or Sanctioning
Authority should verify the boundaries of flat/plot/house as per the previous title
deeds and assess the value of the property independently on the basis of prevailing
market rates and record the same in the file.

17. Proposals for financing a house / flat developed by the builders not having good
reputation in the local market / whose names are appearing in the negative list should
not be considered. If the builder is a private limited or a public limited company,
report from the office of Registrar of Companies should be obtained for ensuring that
the entire property, including the flat proposed to be financed, is not charged in favour
of any bank / financial institution / other creditor for finance availed by the company.

18. Each disbursement, wherever need to be made in stages, should be backed by site /
spot inspection and relative inspection report should be kept on record.

19. Post-sanction inspection after final disbursement should be carried out to ensure that
borrower has taken possession of the house / flat besides verification of end use of
funds. It is also to be ensured that the construction has been carried out as per
approved plan and there is no misutilization of funds.

The above safeguard needs to be taken care by the branches while considering any Home
Loan proposal.

Page | 109
Annexure- 5
RETAIL RATING MODEL
HOME LOAN MODEL (RATING PARAMETERS)

Sl. Explanation of
Variable Scores MAX MIN
No variable
1 Borrower Age (in years)
Range 5 0
a) 0-18 0
b) above 18- upto 25 1
c) above 25- upto 40 4
d) above 40- upto 55 5
e) >55 0
2 Educational Qualification 5 0
a) Doctorate / Post Graduate 5
b) Graduate 3
c) Diploma 2
d) Higher Secondary 1
e) < Higher Secondary 0
3 Marital Status
a) Married 12 12 3
b) Single 3
4 Mobility of Individual - Location
a) Has not changed location in past 3 years 10 10 0
b) Changed location once in past 3 years 5
Changed location more than once in past 3
c) years 0
5 Number of dependents
a) Zero 8 8 0
b) One 7
c) Two 6
d) More than two 0
6 Number of joint applicants
a) 0 3 9 0
b) 1 7
c) 2 or more 9
7 Relationship with Bank
a) All banking done through Bank 14 14 0
b) Good track record of Banking with Bank 12
c) Short term relationship 3
d) No existing relationship 0
8 Employer Type
a) Govt/Public sector 9 9 0
b) MNC 9
c) Listed private sector companies 9
d) Professional 4
e) Unlisted private companies 8
f) Own business 2
g) Self Employed 2

Page | 110
 Pensioners drawing pension through Bank of
h) Baroda 0
i) Pensioner drawing pension from Others 0
j) Others 0
9 Designation
a) Senior Management 5 5 0
b) Middle Management or Self - Employed 3
c) Junior/ Clerical / Pensioners 0
10 Stability of Income
Income has been steadily increasing over
a) the last 3 years 12 12 -5
Income has been almost the same over the
b) last 3 years 7
Income has been unstable over the last 3
c) years 0
Income has been steadily decreasing over
d) the last 3 years -5
11 Proof of income of borrower
a) Income tax returns 3 3 0
b) Salary slip 3
c) Letterhead 1
d) No proof 0
Marketability of property (Marketability will
increase if significant developments are
happening in nearby areas, also it will depend
12 on the condition of the property etc.)
a) Very Good 15 15 -8
b) Good 10
c) Fair 5
d) Poor -8
13 Housing loan purpose category
a) Construction (New) 4 8 0
b) Purchase (Old construction) 0
c) Improvement 8
Foreclosure (for borrowers who borrow in
d) order to repay a previous Home loan) 8
e) Loan given under the rural housing scheme 2
14 Loan to Value Ratio
Range
a) <0.5 18 18 0
b) 0.5-0.7 12
c) above 0.7- upto 0.9 7
d) >0.9 0
15 Net worth to Loan Ratio
Range
a) 0 - 0.5 0 5 0
b) above 0.5 - upto .75 1
c) above 0.75 - upto 1.0 2
d) above 1.0- upto 1.5 3

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 e) above 1.5- upto 2.5 4
f) >2.5 5
16 Net annual income of the borrower (in Rs)
Range
a) <100000 -5 10 -5
b) 100000 - 200000 2
c) above 200000 - upto 350000 4
d) above 350000 - upto 600000 6
> 600000 10
17 Fixed Obligations to Income Ratio
a) 0 - 0.3 12 12 0
b) above 0.3 - upto 0.5 8
c) above 0.5 - upto 0.7 4
d) > 0.7 0
18 Guarantor's Net worth to Loan Ratio
a) 0 to 0.5 0 8 0
b) above 0.5- upto 1.00 4
c) >1.00 8

Sum 168 -19

Scores and respective Grade are as under:

Home Loan

Score Grade
0-85 HL-10
86-95 HL-9
96-105 HL-8
106-110 HL-7
111-115 HL-6
116-120 HL-5
121-125 HL-4
126-130 HL-3
131-135 HL-2
136-168 HL-1

Cut-off score is 96 and investment grade is HL-8

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Annexure- 6

ONLINE HOME LOAN APPLICATIONS

As an additional means of sourcing of Home Loan applications, a link has been provided at
Home Page of our Bank‟s website www.bankofbaroda.com for submission of online
application for Home Loan by loan aspirants.

The system of online application for Home Loan has been recently revamped (with an
in-house package) and available in our website with additional features of „Get the Loan
Eligibility and „Instant In-principle sanction‟

Salient features of the revamped online application system for Home Loan are as
under:

 This link is available on the Home Page of Bank‟s website as „Online Home Loan‟.
 By clicking the link, it will leads to two options
- New Application & Existing application
- New application is for Check the loan eligibility and apply for home loan
- Existing Application is for completing the previously entered/uncompleted loan
application or Tracking the status of submitted application.
 The applicants are able to compute their loan eligibility by giving certain basic
information and income details.
 After checking the loan eligibility, the applicant can proceed for submission of online
application.
 Applicants will be prompted to fill in certain details like address, e-mail, mobile
number, name of branch to avail the loan etc.
 By saving the details, the applicant will get „in principle sanction letter‟ with contact
details of the preferred Branch or SMS(if the preferred branch is attached to SMS).
 The „In-principle sanction letter‟ will also provide the details of documents to be
submitted along with the application form to the Branch/SMS.
 The „in-principle sanction letter‟ generated through the online application system will
be valid for -15- days from date of issue, for submission of complete information/
documents to the concerned Branch/SMS by the applicant.
 The copy of „in-principle sanction letter‟ will also be automatically delivered to the e-
mail address of the Branch/ SMS for reference.
 The applicant will be provided with „Unique Tracking ID‟ for tracking his/her online
application which will provide the current status of the application.
The screen shots of the online application pages are given in Annexure-33 (a). A
sample format of „In-principle approval letter‟ is given in Annexure-33 (b).

Role of Branches / Specialised Mortgage Stores (SMS)

 The Online applications submitted will be parked in the „Online Loan Tracking System‟
 Online Loan Tracking system will be accessible to Branches and SMSs.(On-line tracking
system can be accessed through web-based application accessible by URL
http://taxes.bankofbaroda.co.in/loantrack/ at Bank of Baroda‟s Domain Computers
(PCs) and User (Branch/SMS/RO/ZO) can login into the system/application using
his/her HRnes User id and password).
 The SMSs can access the leads parked in the Online Loan Tracking System with SMS
user IDs.

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 Branches and SMSs are required to follow with the applicants for submission of formal
application form along with relevant documents for conversion of the same in to
business.
 After according the final sanction by the SMS/Branch (consequent upon submission of
all relevant documents to the satisfaction of Branch/SMS) in the Loan Tracking System,
an intimation of the same will be sent automatically to the e- mail id of the applicant.
 In case of rejection, Branch/SMS user has to enter the reason for rejection viz.
applicant not interested, submitted documents are in complete, not submitted the
required documents within 15 days (through drop down options available in the
system) which would automatically result into sending intimation of rejection with
reason to the e-mail id of the applicant.
 If the acceptable documents are awaited/ are received and the SMS/Branch is inclined
to sanction the Home Loan, the same would be recorded by the Branch/SMS in the
system using the menu button „under process/documents awaited‟. In such cases, the
Loan tracking system would continue to show the status „under process/documents
awaited‟ till it is finally sanctioned.
 For processing of the applications, Branch/SMS should preferably collect the
documents from the applicant by visiting his residence/work place (as per his/her
convenience) as it will result in to some kind of pre sanction inspection and KYC
verification.

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Annexure-7 (a)

APPROVAL OF BUILDERS AND THEIR HOUSING PROJECTS

Flat culture is developing very fast and there is huge scope of lending for Home Loans in
multi storied housing project. This culture is now also developing at small centres i.e. Tier II
cities in addition to Metro and big Urban centres. Ample opportunities for lending under
Home Loans are available which shall ultimately augment our Home Loan Portfolio as well as
Retail Loan Book of the Bank.

There may be two type of projects:

I. Where construction has been completed and the flat are ready for sale. In such cases,
the flat are out rightly purchased against full payment of cost of flat.

II. But in other case, where the construction is yet to start or construction is in process, in
such cases the possession is generally available after a period of one year to 3 years.
Till that period, there is no security and the mortgage is created only after getting
possession by the borrower whereas the builders demand payment in installments
from the purchasers.

In case of IInd type of projects, more prudence is required while financing for flats
which are yet to come in existence.

The promoters of Housing projects may be:-

(a) Big corporate houses/ established business groups having good track
records in the field of housing projects and enjoying good market reputation
as genuine and credible builders.

(b) Or the promoters /builders may be new entrants to this field, which can be
further classified under two categories,

(i) The one who may be having good experience of housing projects developments and

(ii) The other one who may be entirely new entrants having no experience in this line.

Different approach is required to be adopted by our operating units with these types of
projects/builders.

Our Operating units must endeavor for approval of housing projects falling under the
categories a and b (i), however in case of housing projects being developed by new
entrant promoters i.e. b (ii) can also be taken into our fold by approval of such projects.

For generating good volume of quality business under home loans through financing of flats
in housing projects, approval of projects /builders is the most important initiative to be
adopted by the Bank.

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Approval of Builder/Developer/Promoter:

For the purpose of approval of Housing projects / Builders, the SMSs / Branches, in the city
are required to visit the projects on regular basis, verify the credentials and to recommend
the names of reputed/credible builders/developers/ promoters and their projects to their
respective Regional Authorities, who would be according approval to those conforming to
the criteria.

As per the instructions conveyed to Zonal and Regional Heads vide BCC:BR:108/820 dated
22.09.2016, the proposal for approval of the project / builder / developer as recommended
by SMS at Metro centers with more than one Region, may henceforth be considered by the
concerned Regional Authority. Accordingly the approving Regional office shall arrange to
provide such approval letter to other Regions / Zones also and approval would be valid for
branches in other Regions also.

For developing a healthy portfolio of housing finance it is necessary that the

builders/developers/promoters of properties have good track record & enjoy good market
reputation as genuine & credible builders. In order to ensure this, Regions have been
advised to prepare a negative list of builders and advise the branches to exercise due care
and caution while entertaining the proposals relating to house property developed by such
individuals and firms.

It will be appreciated that along with the approval of builder/developer/promoters, if the

projects/properties developed by them are also approved after due diligence, it will help
branches in faster decision making and at the same time avoid the chances of perpetration
of frauds and irregularities.

Guidelines for approval of Projects for Home Loans

 Branches/SMSs in cities and large towns should submit the proposal of reputed/
credible builders/ developers/ promoters and their projects to their respective
Regional Authorities, who would be according approval to those conforming to the
criteria. However, in metro cities, since some of the builders/developers may be
common for the entire city across all regions/branches, the approval may be
accorded by the respective Zonal Authorities.

 General Guidelines:

o Obtain construction plan from builder which is approved by the competent

authority.
o Ensure that the builder/developer has got all the statutory clearances from the
respective Govt. / Development Agencies.
o In the event the builder is a private limited or a public limited company, report
from the office of Registrar of Companies should also be obtained to ascertain
whether the entire property is also subject to mortgage or any charge in favour
of any financial institution or bank or any other creditor.
o Ensure that property under development plan is clear, marketable and free from
any encumbrances and can be accepted as valid security for housing loans.
o Ensure that estimated cost and market value of property is as per present market
trend in that particular locality.
o General market reputation of the builder is very good.
o They are the registered builders/ developers.

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 o The builder/ developer should not be in the negative /banned list of builders/
developers.
o The builder/developer should not be a defaulter of any Bank/ Financial
Institution.
o Obtain other information as per the format given as Annexure – 7 (b).
o Ensure compliance of parameters mentioned as per Annexure -7 (a).

Once the above information are obtained, the Region/Zone can go through the
details and initiate the process of due diligence of the project. After being satisfied
about genuineness of the information and no adverse points observed the respective
project can be put under approved list.

 Housing Projects Financed by our Bank:

In case the housing project is financed by our bank, it has been decided to accord
the status of approved Builder and their Housing Project as approved for sanctioning
of Home Loans for purchase of flats, while granting credit facilities to such Builders
for Housing Projects.

A suitable clause of Approved Housing Project in sanction letter of such Builders be

incorporated, while conveying terms & conditions of the sanction to such Builders.

In such cases, possibilities may be explored to impress upon the builder to provide
maximum number of leads to our branches for financing for purchase of flats in their
project.

The communication in this regard conveyed vide letter No.BCC: BR: 105/1437 dated
18.07.2013 to all Zones & Regions shall be applicable to fresh sanctions of credit
facilities to Builder. However, Zones and Regions should scan the existing cases
where credit facilities have already been extended to Builders and sanctioned for
their Housing Projects by our Bank prior to the above mentioned communication and
may approve such projects for considering financing the housing units/flats.

Benefits to Builder by approval of their project:

By approval of projects, the builders get a preferred financier like bank of Baroda for
financing their flats to the prospective purchasers. Some other offers like concession in
interest and processing charges etc. may be passed on in case, good volume of business is
anticipated.

Benefit to purchaser in purchasing flats in approved project:

Purchase gets a financier like Bank of Baroda for financing him /them for purchasing flats in
the approved project and if any concessions are agreed upon with the builder, the same
may be passed on to the purchaser. He may be saved from getting additional burden of
getting Valuation Reports /Legal Opinion on merits of the case.

Benefit to Bank by approving housing projects:

By approval of Housing projects /Builder, Bank get the ample opportunities for getting good
number of leads and high rate of penetration to convert into business. In case of approved

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projects, chances of delinquencies and perpetration of frauds are also eliminated to a large
extent.

o The SMSs/Branches and Regions should make tie-ups with maximum number of
Builders / Developers at each centre.
o This will help SMSs and Branches to get large number of home loan leads.
o Since the due diligence is already done and the title of the property is already
verified, branches & SMS will be able to save lot of time and energy in processing the
home loan applications and also achieving 6 days Turn Around Time at SMSs.
o This will also reduce the chances of perpetration of frauds to a greater extent.

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ANNEXURE- 7 (b)

Parameters for approval of Builders / Developers/ Promoters and their projects for the
purpose of Home Loans

S. No. Parameters

1 Any one of the promoters must be established for at least last -3- years in the
field of housing projects.
(Projects promoted by big Corporates and established business groups be
excluded from this criteria, even if they are launching housing project for the first
time they may be considered)
2. Condition of three years average annual turnover of minimum Rs. 5 Crores in
metros and Rs. 2.50 Crores for other cities for builders not to be insisted upon.
However information revealed during discussions with the promoters and from
market reports, if documentary proof is not available, may be relied upon.
3 Must have completed minimum three projects & sold out majority of units in that
project. (The information revealed during discussions with the promoters may be
relied upon), However, this will not be applicable for Projects promoted by big
Corporates and established business groups.

4 If banking with us, the conduct of the account should be satisfactory, with no
default if financed by us.

5 In case of banking with other banks, credit report from bank may not be insisted
upon. However, Market reputation should not be adverse.
6 The names of the promoters, i.e. Directors / Partners / Proprietor are not included
in defaulters list of Reserve Bank of India / our Bank.
7 No cases relating to projects should be pending in any court. (Information given
by promoters, during discussions may be relied upon.)
8 In respect of completed projects:
a) Time over run is not
exceeded 50% Information given by promoters,
b) Cost escalation should not
be more than 15%. During discussions and market

report may be relied upon.

9 Builders to Provide copies of land development and construction agreement.

(Copies of Balance sheet, Bank statement/ Bankers report may not be insisted
upon)

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ANNEXURE- 7(c)

For Approval of Projects

Information to be obtained from Builders / Developers/Promoters for approval of

the Projects:

1. Name of the Builder & Project:

2 Address: Tel No. Office

Residence
E-mail:
Mobile:
3 Constitution
4 Names of Directors / Partners /
Proprietor
5 Date of Incorporation
7 Banking Arrangements with
(Bank & Branch Name, A/c. No/. if
available)
8 Project on Hand
A Name of the Project
B Location
C Project Cost & construction time
D Name of Financer, if any,
E Number of floors and FSI approved
F No. of Flats/ Houses under
construction
G Constructions started / to be
started on
H Stage of construction
I Expected date of completion of
project.
6 No. of flats / houses constructed
7 Flats / houses sold till date
8 Time over run and Escalation in cost of
construction, if any,
9 Details of Disputes, if any, pending in
any court
10 Name of Other Banks / HFCs who
approved the project for housing finance
11 Whether plan approval obtained from
concerned authority, if so details thereof

12 Whether Title of the property under

development plan is clear, marketable
and free from any encumbrances.

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Annexure 7 (d)

Power to approve deviation to accept „Unregistered Agreement to Sell‟ in

approved and unapproved Housing Projects

Previously the Zonal Heads were authorized to consider deviation to accept „Unregistered
Agreement to Sell‟ in case of housing projects being developed by builders/developers
having satisfactory dealings with our Bank with good credentials/track record and who
should have been approved by the Region/Zone. On case to case basis, Zone were deciding
individual case of projects/builders for accepting „Unregistered Agreement to Sell‟ by
recording reasons to their satisfaction and to also consider request for disbursement of
Home Loan on the basis of terms of agreement to sell.

Our Executive Director on 05.06.2013 has agreed to authorize all Regional Heads to consider
deviation to accept „Unregistered Agreement to sell in approved Housing Projects.

Now, Regional Heads are authorized to consider deviation to accept „Unregistered

Agreement‟ to sell in APPROVED Housing Projects under construction linked plan
on case to case basis and merit of the case.

However, Zonal Heads are authorized to consider deviation to accept

„Unregistered Agreement‟ to sell in UNAPPROVED Housing Projects on selective
basis in case of reputed builders and only after ascertaining credibility / viability
of the project, as also after taking abundant precaution in documentation
aspects, including taking Tripartite Agreement containing Indemnity Clause.

While accepting unregistered agreement to sell, following additional safeguards, documents/

precautions should be taken to mitigate the inherent risk and conveyance deed should be
obtained and mortgage must be created after completion of construction.

 Original Agreement to sell on Rs.100/- stamp paper or as per stamp duty of the state.

 Tripartite agreement between Bank, Borrower and the Builder on Rs.100/- stamp paper
or as per stamp duty of the state. (Standardized format of Tripartite Agreement is given
in Annexure-34)

 Undertaking from the Builder / Developer to handover Conveyance Deed directly to the
Bank for Creation of Equitable Mortgage.

 Copy of the map/ plan of the building duly approved by the appropriate authority.

 NOC from builder for creating mortgage and noting of Bank‟s lien if the building is under
construction. Banks name to be recorded as nominee in the books of the builder.
 Share Certificate, if society is formed, duly supported with NOC from the society for
creation of mortgage and noting of our lien in society‟s record.

 Undertaking by borrower to create Equitable Mortgage.

 Undertaking from the borrower not to borrow from any other source against the
concerned property.

 NOC from the financing Bank / NBFC, if the builder has obtained Project Finance.

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 Draft of agreement to sell and tripartite agreement should be vetted by local Advocate /
Law Officer posted at Zonal Offices.

 Disbursements to be made only on the basis of stages of completion of the

property being financed. [Please ensure not to consider/sanction Home Loan
proposals of builders where disbursements are not linked to various stages of
construction of housing project as per RBI guidelines given as Annexure-7
(e)].

However, in case of home loans to the allottees in the projects developed by

Government Bodies/ Statutory Housing Authorities, the payment schedule prescribed by
such authorities may not be linked to the stages of construction. Such authorities allot
flats to the individual allottees with the following payment modes:

o One time lump-sum payment within 1 to 3 months after allotment.

o Time linked payment plan not linked to the stages of construction.

Hence in cases of projects sponsored by Government/ Statutory Authorities, the

sanctioning authority is authorised to consider to disburse the loans as per the payment
stages prescribed by such authorities, even where payments sought from house buyers
are not linked to the stages of construction, provided such authorities have no past
history of non-completion of projects.

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Annexure- 7 (e)

Upfront disbursal of Housing Loans- RBI guidelines

Reserve Bank of India vide their Circular No.RBI/2013-14/217 DBOD.BP.BC.No.

51/08.12.012/2013-14 dated 03.09.2013 has advised regarding Innovative Housing Loan
Products- Upfront disbursal of housing loans, as under:

1. It has been observed that some banks have introduced certain innovative Housing
Loan Schemes in association with developers/builders, e.g. upfront disbursal of
sanctioned individual housing loans to the builders without linking the disbursals to
various stages of construction of housing project, interest/EMI on the housing loan
availed of by the individual borrower being serviced by the builders during the
construction period/specified period, etc. This might include signing of tripartite
agreements between the bank, the builder and the buyer of the housing unit. These
loan products are popularly known by various names like 80:20, 75:25 Schemes.
(Presently our Bank does not have such Schemes)

2. Such housing loan products are likely to expose the banks as well as their home loan
borrowers to additional risks e.g. in case of disputes between individual borrowers
and developers/builders, default/delayed payment of interest/EMI by the
developer/builder during the agreed period on behalf of the borrower, non
completion of the project on time, etc. Further, any delayed payments by
developers/builders on behalf of individual borrowers to banks may lead to lower
credit rating/scoring of such borrowers by credit information companies (CICs) as
information about servicing of loans gets passed on to the CICs on a regular basis. In
cases where bank loans are also disbursed upfront on behalf of their individual
borrowers in a lump-sum to builders/developers without any linkage to stages of
construction, banks run disproportionately higher exposures with concomitant risks
of diversion of funds.

3. In view of the higher risks associated with such lump-sum disbursal of sanctioned
housing loans and customer suitability issues, banks are advised that disbursal of
housing loans sanctioned to individuals should be closely linked to the stages of
construction of the housing project/houses and upfront disbursal should not be made
in cases of incomplete/ under-construction/ green field housing projects.

In view of above, we have advised all Branches /SMSs vide Circular No. BCC:BR:105/392
dated 05.09.2013, not to consider/sanction such Home Loan proposals of builders where
disbursements are not linked to various stages of construction of housing project.

Accordingly, Bank has decided to withdraw the authority given to Zonal Heads vide letter
No. BCC:RB:99/3566 dated 28.12.2007 to consider disbursement of Home Loans on the
basis of disbursement schedule mentioned in the Agreement to sell, as against guidelines to
make disbursement only on the basis of stages of completion of the property being
financed, with immediate effect from 10.09.2013. [Please refer Annexure 7(f) below]
Reserve Bank of India has come out with review of instructions vide RBI/2014-
15/491 DBR.BP.BC.No.74/08.12.015/2014-15 dated 05th march, 2015 as under:

As per RBI circular DBOD.BP.BC.No.51/08.12.015/2013-14 dated September 3, 2013 on

“Housing Sector: Innovative Housing Loan Products – Upfront disbursal of housing loans”, in
terms of which banks were advised that disbursal of housing loans sanctioned to individuals

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should be closely linked to the stages of construction of the housing project/houses and
upfront disbursal should not be made in cases of incomplete/under-construction/green field
housing projects.

“In context of the above stipulation, some banks have represented that they are not able to
extend home loans to the allottees in the project developed by Government Bodies/
Statutory Housing Authorities, as the payment schedule prescribed by such authorities are
not linked to the stages of construction. Such authorities allot flats to the individual alottees
with the following payment modes:

• One time lump-sum payment within 1 to 3 months after allotment.

• Time linked payment plan not linked to the stages of construction.

On a review, banks are advised that in cases of projects sponsored by

Government/Statutory Authorities, they may disburse the loans as per the payment stages
prescribed by such authorities, even where payments sought from house buyers are not
linked to the stages of construction, provided such authorities have no past history of non-
completion of projects.”

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Annexure- 7 (f)

Disbursement of Home Loan on the basis of Agreement to Sell

As per the existing guidelines of Baroda Home Loan, disbursements/ payments to Builders to
be done only on the basis of stages of completion of the property being financed. However,
Zonal Heads were authorized to consider deviation to accept disbursements on the basis of
„Agreement to Sell‟ on case to case basis or project specific basis only where the projects /
builders are approved as per extant guidelines and the projects are developed by the
reputed builders.

Now, Reserve Bank of India vide their Circular No.RBI/2013-14/217 DBOD.BP.

BC.No.51/08.12.012/2013-14 dated 03.09.2013 has advised that [Pl. refer Annexure 7(e)
above]:

In view of the higher risks associated with such lump-sum disbursal of

sanctioned housing loans and customer suitability issues, banks are advised that
disbursal of housing loans sanctioned to individuals should be closely linked to
the stages of construction of the housing project/houses and upfront disbursal
should not be made in cases of incomplete/ under-construction/ green field
housing projects.

In view of above, Branches/SMSs should not consider/sanction such Home Loan proposals
to builders where disbursements are not linked to various stages of construction of housing
project which has been conveyed vide Circular No.BCC:BR:105/392 dt 05.09.2013.

The administrative powers vested with Zonal Heads in terms of letter

No.BCC:RB:99/3566 dated 28.12.2007 to consider requests for disbursement of
Home Loans on the basis of terms of Agreement to Sell as against extant
guidelines to make disbursement only on the basis stages of completion of the
property being financed has been withdrawn from 10.09.2013.

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 Annexure – 8

ISSUANCE OF FREE CREDIT CARDS TO HOME LOAN BORROWERS

With a view to making home loan product more attractive, so also to meet the requirement
of high net worth customers of having a premium credit card, it has now been decided to
offer premium cards linked with the quantum of limit of home loan as under:

Borrowers with limit of Type of card

Up to Rs.2/ Lacs No card
Above Rs.2 Lacs & up to Rs. 5/- Lacs Silver
Above Rs. 5 Lacs & up to Rs. 10/- Lacs Exclusive
Above Rs.10 Lacs Gold

GUIDELINES FOR CREDIT CARD ISSUANCE:

1) Free credit card is to be issued only to the first named borrower. However, an ADD ON
facility can be availed of by joint account holders, on payment of usual fee for this.
2) The card issuance is free for the first year. Subsequent renewal fee is to be paid by the
card holder.
3) The equitable mortgage of the property is not to be released by the branch even after
settlement of loan account, unless a NOC is obtained from Bobcards Ltd. Branches must,
therefore, write to Bobcards Ltd. early and not wait till the last installment is paid, in
order not to inconvenience customers.
4) With a view to ensuring that mortgage is not inadvertently released without obtaining
NOC, branches may make a mention of credit card issuance in the Security Register,
Attestation Memo and Register containing details of title deeds deposited with the Bank.
5) The borrower/(s) has/have to give an authority letter as per draft enclosed, interalia
authorising branch not to release title deeds of the property mortgaged by him/them
with the Bank unless a No Objection Certificate is not obtained from Bobcards Ltd.
6) The borrower has to fill in credit card application forms.
7) Branch has to give a certificate that the applicant is a home loan borrower and also
mention therein the amount of loan sanctioned and date of creation of equitable
mortgage.
8) The credit card application is to be forwarded to either the local / nearby branch of
Bobcards Ltd., or its Registered Office, at Colaba Mumbai.
9) The application is to be forwarded promptly only after creation of equitable mortgage
and on the day first disbursement is made.
10) In case housing loan customer is already having a credit card, no concession in the
annual fee/charges will be given to him.
11) The customers of Rural & Semi Urban branches are also eligible for credit card.

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Annexure – 8 (A)

(UNSTAMPED UNDERTAKING)

Place:
Date :

The Branch Manager,

Bank of Baroda,
__________________Branch
__________________

Dear Sir,

Re: My Housing Loan account with you.

Whereas I have, taken a housing loan / overdraft against property of Rs.___________

from your Bank and as a security deposited title deeds of my/our property with the Bank,
and created equitable mortgage on ____________in bank‟s favour.

I have also applied and obtained a Credit Card from BOBCARDS Ltd. which is a wholly
owned subsidiary of Bank of Baroda. Being a card holder I abide by their rules and have also
undertaken to make payment of the bills raised on me towards credit card usages.

However, I hereby irrevocably authorize the Bank not to release my title deeds of the
property mortgaged for availing the housing loan even after full settlement of my said
housing loan/overdraft against property account, unless a No Objection/No dues certificate
is produced by me from BOBCARDS Ltd.

Yours faithfully,

[Signature of the borrower(s) ]

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Annexure- 9 – Powers delegated to various authorities for considering deviations on
parameters under Baroda Home Loan

(a) POWERS for FINANCIAL DEVIATIONS (CONCESSIONS) i.e. Deviations having

direct impact on Bank‟s Profit & Loss Account

Parameter for Deviation/ Regional Level Zonal Level Committee of

Concession Credit Credit General
Committee Committee Managers on
(RMCC) (ZOCC) Retail
Banking &
SME Banking
at BCC
1. To reduce the Rate of
Interest:
Baroda Home Loan (to Resident No Powers No Powers No Powers
Indians/NRIs) –regular schemes.
Baroda Home Loan Advantage No Powers No Powers No Powers
Baroda CRE Home Loan No Powers No Powers No Powers
Baroda Home Improvement No Powers No Powers Upto 100 bps
Loan
Baroda AAA Loan No Powers Upto 50 bps Upto 100 bps
2. To waive the Processing No Powers No Powers Upto 50 %
Charges
3. To waive deviation charges No Powers No Powers No powers

* Powers to consider concession in Rate of interest to be given subject to the

condition that the effective rate after concession should not go below „1 year
MCLR+ Strategic Premium‟
* Deviation charges are not applicable to proposals for concessions in Rate of
Interest.
* Deviations exceeding the powers of Committee of General Managers on Retail
Banking & SME Banking at BCC are to be considered by COCC (ED).

Page | 128
(b) POWERS for NON-FINANCIAL DEVIATIONS i.e. Deviations not having direct
impact on Bank‟s Profit & Loss Account.

Parameter for RMCC ZOCC Committee of

Deviation General
Managers on
Retail Banking &
SME Banking-
COGM
1 To exceed maximum
ceiling of loan limit:
Baroda Home Loan Upto Rs. 4.50 Cr Metro: Metro:
(including Baroda Home Upto Rs.1.50 Cr Upto Rs. 10.00 Cr Upto Rs. 15.00 Cr
Loan Advantage & Baroda Urban: Upto Urban: Upto
CRE Home Loan) Rs.6.00 Cr Rs.10.00 Cr
Rural & SU: R & SU: Rs.3.00 Cr
Rs.2.00 Cr
Baroda Home Upto 50% increase Upto 100% Upto 200%
Improvement Loan increase increase
Baroda AAA Upto 50% increase Upto 100% Upto 200%
increase increase
2 Margin Norms:
a Baroda Home Loan: No Powers No Powers No Powers
(including Baroda Home
Loan Advantage, Baroda
CRE Home Loan & Home
Loan to staff under Public
scheme)
b Baroda Home Less than 25% but Less than 20% but Full Powers
Improvement Loan / Home minimum 20%. minimum 15%
Loan to staff under Public
scheme for repairs,
renovation etc.
c Baroda AAA Not less than 20% Deviations Full Powers
of residual value of exceeding the
property after powers of RMCC
deducting not less can be considered
than 133.33% of by ZOCC. However
outstanding LTV to be
amount in existing maintained since it
Home Loan, is classified under
provided no Baroda Home
deviations in any Loan.
other scheme
parameters except
ROI. However LTV
to be maintained
since it is classified
under Baroda
Home Loan.

Page | 129
3 Repayment Period: 1 to 6 years 7 to 12 years No Powers
depending upon depending upon
the maximum the maximum
Repayment Period Repayment Period
as per product as per product
profile and age of profile and age of
borrower/ co- borrower/ co-
borrower. borrower.

4 Other terms and

conditions
a Waiver of existing Full Powers Full powers --
. accounts relationship
b Maximum age Parameters. Full powers Full powers --

c Eligibility on the basis of Full Powers Full powers ---

Income criteria.
(ie. Income criteria and
related clauses if any).
d Repayment Capacity Full Powers Full powers ---
.
e Extending Mortgage of Not more than two Not more than Not more than four
. property (which is already Retail loans /other three Retail loans Retail loans /other
mortgaged to one Retail loans. /other loans. loans
loan) to secure more than
one Retail Loan / other
loans.(Subject to obtaining
two Valuation and
considering the lowest of
the two for calculation of
eligibility)
f. To reduce the periodicity Full Powers Full powers ---
of 3 years for Valuation of
immovable property, in
case of existing accounts
(Subject to the condition
that Region/ Zone to
satisfy about the fair and
acceptable Valuation of the
property.)
g Accepting Unregistered Regional Heads --- ---
. agreement to Sell in case are authorised to
of Home Loans in consider deviation
approved Housing to accept
Projects, under Unregistered
construction linked plan on Agreement to Sell
case to case basis and in APPROVED
merit of the case. Housing Projects
under construction
linked plan on
case to case basis,
subject to
Page | 130
 compliance of
guidelines as per
Master Circular on
Home Loan.
h Accepting Unregistered No Powers Zonal Heads are Full Powers
agreement to Sell in case authorised to
of Home Loans in consider deviation
unapproved Housing to accept Un
Projects, under registered
construction linked plan on Agreement to Sell
case to case basis and in UNAPPROVED
merit of the case. Housing Projects
under construction
linked plan on
case to case basis,
subject to
compliance of
guide-lines
conveyed through
Master Circular on
Home Loan.
i. Upfront disbursement: No Powers No Powers No Powers
To consider disbursement
of Home Loans on the
basis of terms of
agreement to sell as
against to make
disbursement only on the
basis of stages of
completion of the property
being financed.

Guidelines:
Do not consider/ sanction
home loan proposals of
builders where
disbursements are not
linked to various stages of
construction of housing
project.

[As per RBI guidelines

conveyed vide circular
No.BCC:BR:105/392 dated
05.09.13 and as per
guidelines mentioned in
Master Circular on Home
Loan]

j Age of Property Full Powers Full Powers ---

(Subject to compliance of
extant guidelines)
Page | 131
 Guidelines:
Age of property should not
be more than 25 years
k To consider more than one No Powers No Powers No Powers
CRE Home Loan to one
customer.

Guidelines:
Only one Home Loan
under CRE category (by
our Bank) should be
sanctioned by the
competent authority. In
case of more than one
Home Loan under CRE
category, deviation powers
are vested with COCC (ED)
subject to maximum three
CRE Home Loans to one
borrower.
5 To deviate from Take
Over Norms:
Home Loan:
Handing over all the Full Powers --- ---
collaterals securities to (subject to
our Bank adherence of LTV
norms and other
Guidelines: criteria)
All other collaterals
charged to the previous
institution from whom the
loan is being taken over
should also be made
available as security to our
Bank. However, the
condition of handing over
the collateral securities
may be waived provided
the borrower has made
payment of above 50% of
the loan sanctioned by
such other Bank / HFC.

6 Deviations in any other No Powers No Powers No Powers

Take Over Norms

Page | 132
7 Other Specific Criteria in eligibility where RMCC ZOCC COGM
deviations can be allowed: (BCC)
Home Loan: No Powers Full Powers --
1. Principal Applicant must be employed
minimum for last three years – Resident
Individuals
2. For NRIs –Principal applicant should be
having a regular job abroad in a reputed Indian
/ foreign company, organization or government
department holding a valid job contract / work
permit for the minimum past 2 years,
or
Must be employed/self-employed or having a
business unit and staying abroad at least for 2
years.
3. For NRIs- must have minimum gross annual
income equivalent to Rs.5.00 Lacs per annum.

Note:
Deviations in any other non-financial parameters, powers of which are not
specifically defined as above or not mentioned in the parameters of the specific
scheme, are to be considered at Zonal Office Level.

Page | 133
Annexure – 10 (A): DOCUMENTS TO BE OBTAINED ALONG WITH APPLICATION
FROM THE CUSTOMER FOR HOME LOANS TO INDIVIDUALS (RESIDENT INDIAN):
 Passport size photograph of all the applicants
 Residence and age verification, which may be established from the PAN card,
Election ID, Passport, Driving License, Ration card or Aadhar Card
 Bank statements for the last six months
 Latest salary slip (for 3 months) / statement showing all deductions in case of
employed applicants.
 Certified copies of Balance Sheets and Profit and Loss accounts, IT
acknowledgments, advance tax challans (for both company/firm and personal
account) for the last -2- years in case of self-employed applicants
 Brief profile of the company / firm in case of self-employed applicants
 Guarantor Details
 Balance Sheet of Guarantor.

Annexure 10 (B): DOCUMENTS TO BE OBTAINED ALONG WITH APPLICATION

FROM THE CUSTOMER FOR HOME LOANS TO NRIs/PIOs/OCIs

Personal Documents:
1. Copy of the employment Contract (If the contract is in any language other than English,
the same has to be translated into English and attested by Employer / Indian Embassy).
2. Copy of the latest salary slips for the last -3- months.
3. Copy of the Identity card issued by the current Employer.
4. Continuous Discharge Certificate, if applicable.
5. Copy of latest work permit.
6. Copy of the Visa stamped on the passport.
7. NRE Bank accounts pass book or statement of account.
8. Overseas Bank Account Statement for the last 6 months.
9. Bio-data covering educational qualifications, age, job experience, nature of profession/
business etc., with necessary proof.
10. Guarantor forms along with net worth proof / income proof.
11. Copies of IT return of last 2 years. (Indian / Foreign)
12. Undertaking from the employer for remittance of monthly installment, wherever
feasible, if stipulated in the sanction.
13. A salary certificate / income statement duly attested by our foreign office including
subsidiary office/ certified by the competent authority available in the country may be
produced. This may also include Chartered / Certified Accountants, officials of Inland
Revenue Dept. (similar to Income Tax Authorities in India) or any other agency
specified for the purpose. Wherever attestation is not possible, this may be submitted
duly notarized.

Page | 134
For Self Employed:

(a) Balance sheets and profit & loss accounts of the business/profession along with
copies of individual income-tax returns for the last three years, certified by a
chartered accountant
(b) A note giving information on the nature of business /profession, form of
organization, clients, suppliers etc

For PIOs:

A photocopy of the PIO Card or any of the under noted documents:-

 Current passport indicating birth place in India/abroad.

 Indian Passport, if held earlier
 Parents or grandparents passport with details there in substantiating his claim
of being a PIO

Page | 135
Annexure 10 (C): LIST OF PROPERTY DOCUMENTS TO BE SUBMITTED

DOCUMENTS COMMON FOR ALL CASES

 Original stamped receipts for the payments already made to the builder / seller, till date
 37I Clearance from the appropriate Income Tax authorities, if applicable
 List of additional amenities from builder where applicable
DOCUMENTS FOR SPECIFIC CASES
Under construction/ Direct from Builder
Original Agreement with the builder, duly stamped and registered (if the same has been
received from the Sub-registrar‟s office) and the original money receipt issued by the sub-
registrar, for the registration fee paid by the applicant
Pending Registration, following documents to be obtained:
 Certified true copy of the agreement with the builder
 Original money receipt issued by the Sub-Registrar
 Acknowledged copy of the authority letter, addressed by the applicant to the Sub-Registrar
 Copy of the letter acknowledged by the builder / reseller in case he or his representative
did not accompany applicant to Sub-Registrar‟s office to admit registration (To be taken if
applicable)
 No Objection Certificate from the builder on his letterhead
 Letter from the builder / architect indicating the latest progress of construction (for under
construction cases)
2) Directly in Registered Co-operative Housing Society
 Original Allotment from society specifying the flat number and cost of the flat allotted
 No Objection Certificate from the society, on their letterhead
 Original share certificate issued by the society (if issued)
3) Purchased in resale

1. In a registered co-operative society:

Previous chain of Sale Agreements, (original / copies)
Present Agreement in original, between the vendor and purchaser duly stamped and
registered
OR
Pending Registration
Certified true copy of the agreement between the vendor and the purchaser
Original money receipt issued by the Sub-Registrar
Acknowledged copy of the authority letter, addressed to the Sub-Registrar
Copy of the letter acknowledge by the builder/reseller in case he or his representative did
not accompany applicant to Sub-Registrar's office to admit registration
No Objection Certificate from builder / society

Page | 136
 Original share certificate issued by the society (copy if original not yet transferred)
4) Directly from any Development Authority
 Original letter from the Development Authority
 No Objection Certificate from the Development Authority (as per their own format)
 Original receipts, issued by the Development Authority, for the payments made for the
flat
5) Construction of house on a separate plot of land
 Original registered Sale deed / Lease deed / Partition deed / Gift deed under which the
plot of land has been acquired
 Pending Registration, following documents to be obtained:
 Certified true copy of the agreement with the builder / seller
 Original money receipt issued by the Sub-Registrar
 Acknowledged copy of the authority letter, addressed by the applicant to the Sub-
Registrar
 Copy of the letter acknowledged by the builder/ reseller in case he or his representative
did not accompany applicant to Sub-Registrar‟s office to admit registration (To be taken if
applicable)
 Original receipts for the payment made for the plot, if separately available
 All previous documents of title in respect of the plot in possession
 7/12 extract of property card as applicable for the property along with the record of
rights in Form No.6
 Non-agricultural permission & latest Non-agricultural tax receipt
 Title report for the property under consideration
 Detailed estimate of the cost of the project
 Approved building plans

Page | 137
Annexure- 12

FINACLE CODES & ASCROM CODES

Baroda Home Loan Finacle Codes Ascrom Codes

LA110,LA111, 201, 220, 221,
LA112,LA120, LA121 229
LA125, LA127**
Baroda Home Loan to Individuals
LA009 849
LA129 997
LA128 (ISHUP) 860
Baroda Home Loan to NRIs/PIOs/OCIs LA124 52
LA183 (Resident)
Baroda Home Loan Advantage
LA184 (Non-resident)
LA117 (Resident)
LA187 (NRI)
LA188 (Advantage-
Baroda CRE Home Loan
Resident)
LA189 (Advantage-
NRI
Baroda Home Improvement Loan LA116 230
Baroda Additional Assured Advance (AAA) LA114, LA115 233, 843
LA120, LA121, LA122,
Golden Jubilee Rural Housing Finance (GJRHF) 31
LA123
Credit Guarantee Fund Trust Scheme LA160

**LA127 is applicable for Special Home Loan Scheme effective from 16.12.2008 to
31.12.2009.

Annexure – 13

Selling Points of Baroda Home Loan

 Higher Loan limit –Rs. 10 Crores for Mumbai, Rs. 5.00 Crores for Metro, Rs 3.00 Crores
for Urban & Rs.1.00 Crores for Semi Urban & Rural Branches
 Competitive rate of interest.
 No pre-closure charges
 0.25% concession in rate of interest on Car Loans to Home Loan borrowers.
 0.50% concession in rate of interest on Loan to Consumer Durables to Home Loan
borrowers
 Longest repayment period up to 30 years
 Loan on reimbursement basis for expenses incurred for construction/ purchase of
House/Flat is also available
 Online application facility
 Free Personal accidental Insurance for principal borrower and all co-borrowers
 Life Insurance Cover is available on optional basis on payment of one time premium by
the borrower. Premium can be a part of Loan amount subject to margin/LTV norms.
 Home Improvement Loan upto Rs.50/- Lacs for repair/renovation of existing House or
purchase of furniture/fixtures/other gargets.
 Top up Loan (Additional Assured Advance) up to Rs. 2.00 Crores
Page | 138
Annexure- 14: Payment of incentives to staff members against the Home Loan
leads directed by them and converted into real business (Discontinued w.e.f.
01.04.2016)
To compete in the market and not to lose business opportunities to our competitors, our
Bank has decided payment of incentives to staff members for the Loan amount sanctioned
and disbursed, against the leads directed by them and converted in to real business. This
will generate quality Home Loan leads which shall be examined by the branches on merits
and can be undertaken by the Branches/ SMSs. The scheme is effective from 17.06.2013.
 Initially, payment of incentives to staff members for Home Loan leads was as under:
- For Home Loan application above Rs.10 Lac & upto Rs.50 Lac at the rate of
Rs.2500/- per application and for Home Loan application above Rs.50 Lac at the
rate of Rs.5000/- per application against the leads directed by the staff members
and where Home Loan is sanctioned and disbursed by the Bank.
 Detailed guidelines circulated vide Cir. No. BCC: BR: 105/246 dated 14.06.2013.
 The Scheme was initially launched upto 30.09.2013 and further extended upto
31.03.2014.
 Further the scheme was extended up to 31.03.2015 with modifications in amount of
incentives and subsequently extended upto 31.03.2016.

1. Amount of Incentives:
Revised amount of
Existing amount of
Incentives (w.e.f.
Parameter incentives (w.e.f.
01.04.2015 to
01.04.14 to 31.03.15)
31.03.16)
Loan application above Rs.2,500/- per Rs.3,000/- per
Rs.8 Lacs upto Rs.25 Lacs application application
Rural
Branches Loan application above Rs.5,000/- per Rs.6,000/- per
Rs.25 Lacs application application

Loan application above Rs.2,500/- per Rs.3,000/- per

Semi Rs.8 Lacs upto Rs.35 Lacs application application
Urban
Branches Loan application above Rs.5,000/- per Rs.6,000/- per
Rs.35 Lacs application application
Loan application above
Rs.2,500/- per Rs.3,000/- per
Urban & Rs.10 Lacs upto Rs.50
application application
Metro Lacs
Branches Loan application above Rs.5,000/- per Rs.6,000/- per
Rs.50 Lacs application application
2. Method of submission of Leads :

 Staff member will obtain leads on Home Loan of individuals from various sources and
explain Home Loan Product details.
 Staff member should submit the leads to the Branch/SMS in the prescribed „Lead
Submission Form‟ (As per Annexure-35).
 Staff member need not to submit any KYC/other documents to the Branch/SMS.
 Leads generated by staff member who is the sanctioning authority for the particular
proposal should not be considered for incentive.
 Leads generated from Dynamic Monitoring Reports, Online applications and inquiries
received through branch-e mails will not be eligible for staff incentive.

Page | 139
Other modalities of the scheme:

 The incentive will be paid after conversion of the leads into business. i.e. on first
disbursal of the loan.
 The amount of incentive will be paid on monthly basis through salary payment through
HRness.
 No other payment will be made to staff member in the form of allowance/ out-of-pocket
expenses etc.

 The leads generated exclusively by the staff members and duly certified by the
Branch Heads will qualify for incentive scheme. Leads generated by the approved
builders and subsequently claimed by the staff members, shall not be eligible for staff
incentive claim.

 Staff member will not claim any TE / DA for mobilization of Home Loan Leads.

 The mobilization should happen outside the office hours and on holidays. Staff
Members must ensure that the daily routine of the Branch / SMS should not get
disturbed.

 Presently Bank is offering staff incentive scheme in various other areas of operations
viz. NPA / PWO Recovery, Issuance of Debit Cards, other incentives etc The total
amount of incentive (under all incentive scheme) received by any employee should
not exceed 20% of his gross annual salary as per Government guidelines. Gross
annual salary will be computed on the basis of gross salary on regular monthly basis.
Taxes, if any, shall be borne by the staff member.
 The amount of incentive should be paid through salary payment through HRness
package only so as to ensure that:
o TDS is deducted
o The overall incentives to an employee remain within the threshold of 20% of
his gross annual salary.
 Staff members to note carefully that all incentives received by them, will be added to
their income for calculation of all types of taxes.

 The amount to be paid by way of incentive will have to be entered in Payroll ->
Periodic Entry ->Monthly Entry in „Incentive to staff for Home Loan Leads‟
Field and the same will be get paid with the salary. While entering the incentive, in pay
slip message field, branches may be advised to enter the details in text format. The
amount will also get included in total income and prorate tax will be deducted by the
system.

 Each Branch will maintain proper record of the Home loan incentive payment, which
will be subjected to Audit & Inspection by ZIC & Regional Office. (As per the format in
Annexure-25)

 Branch will submit a monthly statement to their controlling Office informing the
monthly payment of incentives to the staff members.

 Branch Heads should maintain proper records of lead generation and their conversion
into disbursement.

Page | 140
Annexure- 15
Payment of service charges to Approved Builders against the Home Loan leads
directed by them and converted into real business

To compete in the market and not to lose business opportunities to our competitors, our
Bank has decided payment of service charges to Approved Builders, whose Housing Project
is approved by our Bank for the Loan amount sanctioned and disbursed, against the leads
directed by approved builder and converted in to real business. This will generate quality
Home Loan leads which shall be examined by the branches on merits and can be undertaken
by the Branches/ SMSs.

Salient features of the Scheme are as under:

 Payment of service charges for the Loan amount sanctioned and disbursed, against
the leads directed by the builder and converted in to real business is applicable only
to approved builders whose Housing project is approved by our Bank.

 Zonal & Regional Heads are authorized to approve Builders and the project
developed by them on the recommendation of SMS / Branch as per eligibility
criteria advised vide circular no. BCC: BR: 104:115 DT 02.04.2012.
,
 SMS / Branch Head will give appropriate product information inputs to the
identified approved builder or his authorized nominee or Builder‟s sales
executives, employee etc or marketing agent of the Builders so as to enable them to
give proper guidance to the prospective Home Loan Borrowers.

 Builder or his authorized representatives after briefing their customers

about our product would direct them to SMS / Branch.

 Builders will provide facilities for bank‟s officials by providing table & Chair, local
telephone line and lighting etc in their premises for interaction with their customers
and taking forward the proposal.

 Builders will be paid service charges, which should not exceed 0.25% of
the Home loan amount for every case directed to the Bank or Rs 50,000/
whichever is lower subject to sanction and disbursement of Home Loan by
the Bank

 The service charges of 0.25% will be paid to the –Approved Builder or his authorized
nominee or builder‟s sales executives, employee etc or marketing agent of the
Builders. A list of authorized builder‟s sales executives, employees etc, their account
details and Bank‟s name should be obtained from the Builder, project wise on
Builder‟s letter head, which will be retained at the Branch for identification of the
sales executives for payment of service charges.

 Branch should however ensure that there is no double payment of service charges.
 All the payments of service charges to Approved Builders against the Home Loan
leads directed by them and converted into real business should be routed through
the following Finacle A/c No. opened for all Branches.

Page | 141
 No. xxxx0054511066 (xxxx being SOL ID of the Branch)- P/L Payment of Service
Charges to Approved Builders.

 Branches should maintain proper record of the Home loan service charges payment,
which will be subjected to Audit & Inspection by ZIC & Regional Office. (As per the
format in Annexure - 26)

 Branches should submit a monthly statement to their controlling Office informing the
monthly payment of service charges to the Builders

 Service charges will be paid at the time of first disbursal inclusive of service tax.
Taxes, if any, shall be borne by the Builder.

 Service Charges should be paid through an account payee instrument only. Under
no circumstances, service charges are to be paid in cash.

 Builder will not use Bank‟s name or logo to promote its business and there shall be
no representation from Builder‟s that Bank will offer credit facility as a matter of right
to the Builder‟s customers. Providing credit will be at the sole discretion of Bank as
per norms under the scheme.

 Scheme is effective from 17.06.2013 and will continue on ongoing basis till
further instructions as conveyed vide Circular No.BCC: BR: 105/425 dated
30.09.2015.

Annexure-16: Implementation of orders of Delhi High Court

Supreme Court of India has directed Municipal Corporation of Delhi to seal all unauthorized
business units i.e. shops & offices set up in residential area in contravention of the laws in
this regard. Hence, many of such enterprises have either been sealed or closed their
business operations.

This has caused financial hardship to all such businessmen and they failed even in meeting
out their basic family needs. Besides the owners of the properties and businessmen, the
bankers providing finance to these business organizations and for properties have also been
hit by the orders of Supreme Court, as they are not in position to recover money from such
borrowers.

In this context, during the hearing in the writ petition filed by Kalyan Sanstha Welfare
Organization, the Hon'ble High Court of Delhi has directed as under:

'We hereby direct that henceforth Banks will check whether the loan sought for is for
authorized structure or an unauthorized structure and the Banks will obtain an undertaking
on an affidavit from the parties seeking such loans that the building is constructed as per
sanctioned building plans. Banks shall also ensure that the sanctioned building plans are
attached with the undertaking. Let necessary directions be issued in this regard either by the
concerned Ministry of Banking or the Reserve Bank of India'

The Monitoring Committee constituted by the Hon'ble High Court of Delhi regarding
Unauthorized Construction, Misuse of Properties and Encroachment on Public Land, has

Page | 142
issued certain directions through Reserve Bank of India for immediate compliance by the
banks / Financial Institutions. Therefore, branches are advised as under:

A. Loan for house construction:

 In cases where the applicant owns a plot / land and approaches the banks / FIs for a
credit facility to construct a house, a copy of the sanctioned plan by competent
authority in the name of a person applying for such credit facility must be obtained
by the Banks / FIs before sanctioning the home loan.
 An affidavit-cum-undertaking must be obtained from the person applying for such
credit facility that he shall not violate the sanctioned plan, construction shall be
strictly as per the sanctioned plan and it shall be the sole responsibility of the
executants to obtain completion certificate within 3 months of completion of
construction, failing which the bank shall have the power and the authority to recall
the entire loan with interest, costs and other usual bank charges.
 An Architect appointed by the bank must also certify at various stages of
construction of building that the construction of the building is strictly as per
sanctioned plan and in case of completed project shall also certify that the
completion certificate of the building issued by the competent authority has been
obtained.

B. Loan for purchase of ready house / flat.

 In cases where the applicant approaches the bank/FIs for a credit facility to purchase
the built up house/flat, it should be mandatory for him to declare by way of an
affidavit-cum-undertaking that the built up property has been constructed as per the
sanctioned plan and/or building bye-laws and as far as possible has a completion
certificate also.
 An Architect appointed by the bank must also certify before disbursement of the loan
that the built up property is strictly as per sanctioned plan and/or building bye-laws.

C. Unauthorised Colonies

 No loan proposal in respect of those properties, which fall in the category of

unauthorized colonies unless and until they have been regularized and development
and other charges paid, should be considered.

D. Commercial Property

 No loan should be granted in those proposals, which relate to the properties meant
for residential use but the applicant intends to use the same for commercial purposes
and declares so while applying for loan.

To safeguard bank‟s interest, the branches are advised to strictly comply with the above
directions while considering any housing loan request.

Page | 143
 Please affix
APPLICATION FOR HOME LOAN recent
(for Resident Indians) photograph

I/We request you to grant me/us a loan facility of Rs. ____________________ under Home Loan Scheme for
_______________________________________________________________________________________

To enable you to consider the proposal, I/We submit the following particulars.
Please complete all sections in BLOCK LETTERS and tick  options wherever applicable

Name: _______________________ _______________________ __________________________

(First name) (Middle name) (Last name)

PAN/GIR No. : ____________________

Date of Birth : ______ ____ ______ Present address:
(DD) (MM) (YYYY) Address: __________________________________
Age: _______ (years) __________________________________
Sex : Male/Female _______________________________ __
Marital Status: City: ______________ State: ________________
Single/Married/Divorced/Widowed Pin code: ___________ ___
E-mail: Phone number: (O)_____________(R) __________
___________________________________ Years in current address: _________________
Employment status (tick mark): Mobile phone no: _______________
 Salaried Fax no: ___________________
 Self-employed Changed Residence in past 3 years :
 Professional Not Changed Once More than Once
 House wife Permanent address:
 Others Address: __________________________________
Previous address: __________________________________
Address: _____________________________ _______________________________ __
__________________________________ City: ______________ State: ________________
_________________________________ Pin code: ___________ ___
City: ___________ State: _______________ Phone number: ________________
Pin code: ___________ ___

Father's/Husband's Education (tick mark): Banking with us (Y/N): ______

name:  Matric or below matric If yes, then fill the following:
____________________  Under Graduate/Higher secondary Banking with us since: _______
____________________  Graduate (YYYY)
 Post-graduate Account type: ______________
 Doctorate Account number: ___________
Branch name: ______________
Are you a BOB staff Category: No. of dependents (excluding
(Y/N): _____ SC/ST/OBC/OTHERS/MINORITY spouse): ________
COMMUNITY No. of children: ________
Passport No: ______________ Earning member in family,
if any (Y/N): __________
Mention branch where loan account should be opened:
Reason for choosing the branch (tick mark)  Near location of target property
 Near place of work/business
 Near place of present residence
 Branch maintains salary account
 Other: __________________
Income and expenses
Primary monthly income Other income details Monthly expenditure
Gross income: ______________ Rent received: ______________ Loan repayment: ____________
Deduction: ______________ Agriculture: ______________ Rent paid: _____________
Others: _______________ Others: _____________
Description: _______________
_______________

Page | 144
Salaried: Please tell about your work: Self-employed/Professionals: Please tell about
Employer name: ___________________________ your work:
Department: ___________________________ Name of company/firm:
Address: _________________________________ _____________________________________
_________________________________ Activity: _______________________________
City: ____________ State: _____________ Address: _________________________________
Pin code: _________ _________________________________
Phone no: ______________ Extn No: ________ City: ____________ State: _____________
Fax no: ____________________ Pin code: _________ Phone no: ____________
Company email: ___________________________ Fax no: ____________________
Designation: Executive/Managerial/Clerk Company email: ___________________________
Years with employer: _________ Designation: Executive/Managerial/Professional
Contact person: __________________ If professional, then choose one of the following:
Name of previous employer: _________________ Doctor Architect CA
Retirement age: ____ MBA Engineer Lawyer
Working with: Others: ________
 Govt./Public sector Years in business/profession: _________
 Public Ltd Contact person: __________________
 Private Ltd Retirement age: ____
 Partnership Business details:
 Proprietorship  Private Ltd Partnership
 MNC  Proprietorship Others: _______________
Established since: ________________
Credit card details Other assets
Credit Cards Owned : ______  Colour TV  Telephone
Card Issuer: ________  Refrigerator  Cellular Phone
Card No. : _____________________________  Car  Personal Computer
 Two Wheeler  Washing Machine

About bank accounts (including credit facilities, if any):

Name of Branch Branch Number of Account Account Account As on
Bank telephone years type Number balance date
number account held (Rs.)

Outstanding Loan details in individual name :

Source Purpose Date of Loan Outstanding EMI Overdue Overdue
sanction Amount amount, if any since

Income Details: Details of other present immovable Properties

(Other than proposed as security for housing loan)
1. Gross Monthly Income (Rs.) : _________
Nature of properties:
2. Salaried Person
Plot of Land Agricultural Land
(I) Monthly Basic (Rs.) : _________
House/ Godowns Others
(ii) % of PF deduction : _________
Location: Survey / House No.__________
3. Annual Professional Tax : ________
Street / locality_______________ _________
4. For Tax Purpose
Village/ Town__________Distt:____________
(i) Total Annual Savings under s/88:__________
Property in whose name?____________
(ii) 100% Rebate Amount : __________
Area / Size of the property:
(iii) Deduction under chapter VI A : __________
Cost (at the time of purchase): Rs._______
(iv) Other Rebate /Deduction claimed: _________
Present estimated market value: Rs.
5. Net Annual Income of other Whether encumbered: If yes, give detail:
Family members: __________
(Excluding co applicant & Guarantor)

Page | 145
Information on Guarantor/Co-applicant (if present)
About your Co-applicant: About your Guarantor:
Name : _______________________ Name : _______________________
Date of birth: _________________ (DD/MM/YYYY) Date of birth: _________________ (DD/MM/YYYY)
Father’s/husband’s name: ___________________ Father’s/husband’s name: ___________________
Relation with Applicant: _____________________ Relation with Applicant: _____________________
Address: ____________________________ Address: ____________________________
____________________________ ____________________________
____________________________ ____________________________
City: __________ Pin code: _________ City: __________ Pin code: _________
State: _______________ State: _______________
Occupation: _______________________ Occupation: _______________________
Phone/Fax: _______________________ Phone/Fax: _______________________
Email: ________________________ Email: ________________________
PAN/GIR Number:________________________ PAN/GIR Number:________________________
Net Annual Income (Rs.): ____________________ Net Annual Income (Rs.): ____________________

Net worth
In Rs. Applicant Co-applicant, if present Guarantor, if present
1. Total movable
2. Total immovable
3. Total assets (1+2)
4. Total liabilities
5. Net assets (3-4)
6. Amount of collaterals

Proposed Loan Details:

Tenure in Months: ____________________ Outside Borrowings (Rs): ___________________
Purpose: ______________________________ Loan Amount requested (Rs):________________
(a) Purchase Price (Rs): ______________ Rate of Interest %:_________________________
(b) Stamp Duty (Rs): ____________________ Floating / Fixed: ________________
(c) Registration Fee (Rs): __________________ Margin %: _______________________________
(d) Other (Rs): __________________________
Total (a+b+c+d) (Rs): _____________________

Details of Movable Assets in my name:

(A) Life insurance Policies
Policy No. Date of Sum Co. & Branch Annual Premium paid or
issuance Assured name Premium surrender value

(B) Shares/ Debentures/ Term deposits / Govt Securities (NSC etc)

Co./ Bank/ Post Office Date of Face Value Present value Due date Whether
Instrument encumbered

(C) Other movable assets:

Descriptions Year of acquiring Purchase price Market Value Valuation date

Page | 146
(D) Details of Liabilities:
Details Of Loan In Firms Name/ Company’s Name where you are interested as Prop, Partner/ Director
a) Name of the Bank/ institution and its branch :______________________
b) Purpose and amount of loan/ credit facilities :______________________
c) Security / Repayment schedule :________________________________
d) Present outstanding :________________________________
e) Liabilities other than to Bank and Financial Institutions: ________________
Details of Personal Guarantee given for any person/firm. If yes, furnish details (i.e. Name of the
Bank/ Institutions, on whose behalf, amount of guarantee, present status of a/c etc.)
I enclose / Submit documentary proof in support of the above submissions.

The loan applied for as above for Rs………….(Rupees…………………………………………………………) under Direct Housing Finance
Scheme is repayable in …………..monthly instalments of Rs……………….each. I / We note that the rate of interest applicable on the loan will be
at ……..% p.a. which would be applied at quarterly / monthly interval or as applicable from time to time. I undertake to contribute
Rs……………..towards margin money being ………% of the project cost.

Further I give below particulars about myself, dependants & legal heirs
Name/Age of dependents/ Relationship with Address Occupation / Vocation
Legal heirs the borrower of Legal heirs

I/We hereby declare that all the particulars and information furnished in the application form are true, correct and complete and up-to-date in all
respects. I/We have not withheld any information. I/We confirm that I/We have had no insolvency proceedings initiated against me/us nor have
I/We ever been adjudicated insolvent. I/We also authorize Bank of Baroda or its agent to make references and enquiries relative to information in
this application which Bank of Baroda considers necessary. I/We also authorize Bank of Baroda to exchange, share, part with all information
relating to my/our loan details and repayment history information to other Banks/Financial institutions/ Credit Bureaus/Agencies as may be
required and shall not hold Bank of Baroda liable for use of this information. I/We undertake to inform Bank of Baroda regarding any change in
my/our residence/employment/Occupation/Transfer and to provide any other information that Bank of Baroda may require. I/We further agree that
my/our loan shall be governed by the rules of Bank of Baroda which may be in force from time to time. Bank of Baroda reserves the right to reject
any application without providing any reason.
I further declare that I am not a Director in any Bank. There is no litigation against the firm or me / co. in which I am the proprietor / a
partner/ a Director.
I am / was not interested as Proprietor / partner/ Director in any firm/ company whose name is listed in caution list of RBI/ ECGC.
I/we under take to bear processing, service, documentation charges etc. stipulated by the bank from time to time. I/we agree, note and
understand that Bank of Baroda shall be entitled at its sole discretion to call back, the entire loan/advance whether due and payable or not
at any time without assigning any reason and enforce its rights, remedies and securities.
Yours faithfully,

Place : __________________________________
Date __________________________________ Signature of the Applicant/s / Co - Applicant

I am willing to stand as guarantor for the above loan ( details as per enclosed sheet)

Place : ______________________________
Date : _____________________________ Signature of the Guarantor/s

-------------------------------------------------------------------------For office use only------------------------------------------------------------------------------

Warm lead No: ______________ Sales executive code:

Borrower number:_______________ Branch name and alpha code where parked :

Property Details Proposed for the Loan (For Office use ):

1. Stage of construction (For New Construction): Final / Intermediate / Foundation / Plot

2. Age of Building/Flat in years (For Existing Construction ) : __________________

Builder’s/Seller’s Name: _____________________________________________________________

Area details:
Total area- ____________ Sq. ft. Built up area - _____________ Sq. ft.

Location / Address:
______________________________________________________________________________
______________________________________________________________________________

Page | 147
Particulars about Co- Borrower / Guarantor (wherever applicable)

Name: Father’s / Husband’s Name:

Details of other present immovable properties (Other than proposed as security for housing loan in
case of co borrower)

Nature of properties: Plot of Land / Agricultural Land / House/ Godowns / Others

Location: Survey / House No.__________Street / locality_________________ _________

Village/ Town___________ Distt:____________

Area / Size of the property: Present market value: Rs.

Whether encumbered: If yes, give detail:

Details of Movable Assets in my name:

(A) Life insurance Policies
Policy No. Maturity Sum Co. & Last premium Total Premium paid
Date Assured Branch name paid up to or surrender value

(B) Investments(Shares/ Debentures/ Term deposits / Govt Securities like,NSC etc)

Description Face value No of units Present market value

(C) Other movable assets:

Descriptions Purchase price Market value Valuation date

(D) Details of liabilities:

Details Of Loans / advances availed from Bank’s / Institutions & other liabilities:
Name of Bank/ Institution: Purpose :
Amount of Loan P/O ___________ overdue if any.
Details of Personal Guarantee given, if any:
Name of the person on whose behalf ________________ Bank / Institution
Amount of commitment _____________ Overdue if any_____________-

Particulars of Legal Heirs:

Sr. No. Name Relationship Age Present Address

I enclose / submit documentary proof in support of the above submissions.

I further declare that the information submitted above is true and correct to best of my knowledge and
belief.

Place:
Date: Signature

Page | 148
 FOR INFORMATION OF HOME LOAN APPLICANT :

A. UNIFIED PROCESSING CHARGES:

Unified processing charges will be levied as detailed below:

Upto Rs.50 Lacs: 0.50% of Loan amount

Minimum: Rs.7,500/- (Upfront)
Maximum: Rs.12,500/-

Above Rs.50 Lacs: 0.25% of Loan amount:

Minimum : Rs.7,500/- (upfront)
Maximum: Rs.20,000/-
Service Tax will be applicable

In case of takeover of Home Loan: Rs.7, 500/- (upfront) + Service Tax

The unified processing charges will include:

 Processing Charges
 Documentation charges
 Document Verification/ vetting charges
 Pre- sanction Inspection (Contact Point Verification-CPV) charges
 One time post inspection charges
 Advocate charges for legal opinion
 Valuer charges for valuation
 Bureau report charges
 CERSAI charges
 ITR Verification charges

B. PREPAYMENT/ PREMATURE CLOSURE CHARGES:

 No penalty is payable if loan is prepaid partly or fully.

C. LIST OF DOCUMENTS TO BE OBTAINED FROM THE CUSTOMER :

 Passport size photograph of all the applicants

 Residence and age verification, which may be established from the PAN card, Election ID, Passport,
Driving License or Ration card.
 Proof of Business / office address.
 Bank statements for the last six months
 Copy of IT Returns for last -2 years alongwith assessment order.
 Salary slips for last 3 months (Minimum) in case of salaried class applicants.
 Copy of LIC premium receipts, if any, and / or copies of other investments.
 Certified copies of Balance Sheets and Profit and Loss accounts, copy of IT Return alongwith
assessment orders, advance tax challans (for both company/firm and personal account) for the last
three years in case of self-employed / business category applicants
 Brief profile of the company / firm in case of self-employed applicants
 Guarantor Details
 Copy of property documents
 Cheque for unified processing charges

______________________________________________________________________
ACKNOWLEDGEMENT TO THE APPLICANT FOR APPLICATION:

We have received home loan application from Mr. ____________________________

S/o _________________________________ of ______________________________
for Rs. ______________________ on ________________.

Seal of the Branch For Bank of Baroda

_______________Branch
Date:_________________

Page | 149
 RETAIL LENDING
Application Form – Please Affix
HOUSING LOAN
(NRIs / PIO)
btìGò Atéßò btQ‡tèVt Bank of Baroda Recent
Photograph

ALPHA CODE: Borrower No. _______________________

I/We request you to grant me/us a loan facility under Housing Loan Scheme for __________
To enable you to consider the proposal, I/We submit the following particulars.

Please complete all sections in BLOCK LETTERS and tick √ boxes wherever applicable

Name : _______________________ _______________________ __________________________

Category : SC/ST/OBC/OTHERS/MINORITY COMMUNITY PAN/GIR No. : ____________________

Present Overseas Address :
__________________________________________________________________________ PIN : ________________
______________________________________________________________________
Telephone : ________________ Fax : ______________________ Mobile No. : ______________________

No. of Years in present business/ employment:

Changed Employment in past 3 years : Not Changed Once More than Once

Date of Birth : _______ (DD) _______ (MM) ______________ (YYYY) Age :

Permanent Address : ____________________________________________________________________________

_________________________________________________________PIN : ______________

Tel. : ____________ Fax : _____________ E-mail : _____________________________________

i) About Yourself Net worth

Applicant Co applicant Guarantor
Sex : Male Education : Matric 1. Total
Under Graduate Moveable
Female Graduate 2. Total
Post-Graduate Immovable
Marital Status: Single Doctorate 3. Total
Assets 1+2
Married If Professional : Doctor 4. Total
Architect Liabilities
Divorced CA 5. Net
MBA Assets 3-4
Widowed Engineer 6. Amount of Collaterals
Lawyer
No. of Dependents : ______ 7. Presence of Guarantor : Yes / No
(Excluding spouse) Others _______________ (If yes, give details in above column)
No. of Children : _________
Credit Card Details : PASSPORT No.:
Credit Cards Owned : ______ Card Issuer: ________ Place of Issue :
Card No. : _______________________________________ Date of Issue :
Bank of Baroda Account No. __________________ CA / SB Valid upto :
Branch Name: ______________________________________ Date of Visa granted / work permit :
Valid upto :

Salaried: Please tell us about your work: Self Employed / Professional/Business

Name of Organisation : ____________________________ Please tell us about your work:
Designation : Executive Managerial Clerk
Department : ___________________________________ Name of Company : _____________________________
Office Address : __________________________________ Office Address :
________________________________________________ ______________________________________________
_____________________________PIN : ______________
Tel.: _________Extn. No. :___________ Fax : __________
E-mail : ________________________________________ PIN : _________________

Working with : Govt./Public Sector Public Ltd. Tel. : __________________ Fax : _________________
Pvt. Ltd. Partnership
Proprietorship MNC E-mail : _______________________________________

Working Since: ______________. Retirement Age: ______

Years at Current Job : Business Details : Pvt. Ltd. Partnership
Greater than 5 Years
Between 3 to 5 Years Proprietorship Others ____________________
Between 1 to 3 Years Established Since:
Less Than 1 Year _______________________________

Gross Monthly Income: Rs.____________________ Designation: Executive Managerial

Years in Current Business : >5 3 – 5 1 – 3 <1

Greater Less
Gross Monthly Income: ______________________
Proposed Loan Details:(To be filled by Income Details:
Branches/Offices)
Tenure Months:_______________________ 1. Gross Monthly Income (Rs.) : _______________________
2. Salaried Person
Purpose:_____________________________ (I) Monthly Basic (Rs.) : _______________________
(ii) % of PF deduction : _______________________
Purchase Price(Rs):____________________
(a) Stamp Duty : _________________ 3. Annual Professional Tax : ______________________
(b) Registration Fee : _____________
(c) Others : _____________________ 4. For Tax Purpose
(i) Total Annual Savings under s/88: ______________________
Outside Borrowings (Rs):________________ (ii) 100% Rebate Amount : ______________________
(iii) Deduction under chapter VI A : _____________________
Loan Amount(Rs):_____________________ (iv) Other Rebate /Deduction claimed: ______________________

Rate of Interest %:_____________________ 5. Total Monthly house hold expenses : ______________________

(Floating / Fixed option) 6. Monthly other loan amount : ______________________
7. Net Annual Income of other Family members: ________________
Margin %:____________________________ (Excluding co applicant & Guarantor)
8. Gross Income during last two years: I II

Salary Income
Bonus, if any
Incentive, if any ___________________
Total
___________________
Average Income of last two years : (Rs)

Property Details (For Office use ) :

1. Stage of Construction (For New Construction) : Final Intermediate Foundation Planning

2. Age of Construction (For Existing Construction ) : < 5 years 5- 10 years

10 years – Maximum Limit >= Maximum Age Limit
Builder’s / Seller’s Name :
_________________________________________________________________________
Area : Total - __________ Sq. ft. Built up - _____________ Sq. ft.
Location / Address :
____________________________________________________________________________________________
_____________________________________________________________________________

Outstanding Loan Amount of Loan Outstanding EMI Default /Overdue

Details Source/Type Since
1)
2)
3)

About Your Bank Account (including credit facilities if any)

Name of the Bank Branch & A/c. Type A/c No. No. of years account
Telephone No. held
Main Bank:_________ _______________ _________________ ________________ _________________
Others:
1)
2)
About your Co-applicant : About Guarantor :
Name : _______________________
Name : _____________________
Relation with Applicant : _______________________
Address : _______________________
Address : _____________________
_______________________
_____________________
Occupation : _______________________
Occupation : _____________________
Phone/Fax : _______________________
Phone/Fax : _____________________
Email ________________________
Email : ______________________
PAN/GIR Number :________________________
PAN/GIR Number : _____________________
Net Annual Income (Rs.) : ______________________
Net Annual Income (Rs.) : _____________________

The loan applied for as above for Rs………….(Rupees…………………………………………………………) under Direct Housing
Finance Scheme is repayable in …………..monthly instalments of Rs……………….each. I / We note that the rate of interest
applicable on the loan will be at ……..% p.a. which would be applied at quarterly / monthly interval or as applicable from time to time. I
undertake to contribute Rs……………..towards margin money being ………% of the project cost.

Further I give below particulars about myself, dependants & legal heirs:
Name/Age of dependents/ Relationship with Address Occupation / Vocation
Legal heirs the borrower of Legal heirs

I/We hereby declare that all the particulars and information furnished in the application form are true, correct and complete and up-to-
date in all respects. I/We have not withheld any information. I/We confirm that I/We have had no insolvency proceedings initiated
against me/us nor have I/We ever been adjudicated insolvent. I/We also authorize Bank of Baroda or its agent to make references
and enquiries relative to information in this application which Bank of Baroda considers necessary. I/We also authorize Bank of
Baroda to exchange, share, part with all information relating to my/our loan details and repayment history information to other
Banks/Financial institutions/ Credit Bureaus/Agencies as may be required and shall not hold Bank of Baroda liable for use of this
information. I/We undertake to inform Bank of Baroda regarding any change in my/our residence/employment/Occupation/Transfer
and to provide any other information that Bank of Baroda may require. I/We further agree that my/our loan shall be governed by the
rules of Bank of Baroda which may be in force from time to time. Bank of Baroda reserves the right to reject any application without
providing any reason.

I/we under take to bear processing, service, documentation charges etc. stipulated by the bank from time to time. I/we agree,
note and understand that Bank of Baroda shall be entitled at its sole discretion to call back, the entire loan/advance whether
due and payable or not at any time without assigning any reason and enforce its rights, remedies and securities.
Yours faithfully,

Place : __________________________________
Date __________________________________

Signature of the Applicant/s / Co - Applicant

I am willing to stand as guarantor.

Place : ______________________________
Date : _____________________________

Signature of the Guarantor/s

LIST OF DOCUMENTS TO BE OBTAINED WITH APPLICATION FORM:

Personal Documents :

1. Copy of the employment Contract (If the contract is in any language other than English, the same has
to be translated into English and attested by Employer / Indian Embassy).
2. Certified copy of the latest salary slips for the past 6 months.
3. Copy of the Identity card issued by the current Employer.
4. Continuous Discharge Certificate, if applicable.
5. Copy of latest work permit.
6. Copy of the Visa stamped on the passport.
7. NRE Bank account pass book or statement of account.
8. Overseas Bank Account Statement for the last 6 months.
9. Bio-data covering educational qualifications, age, job experience, nature of profession/ business etc.,
with necessary proof.
10. Guarantor forms along with net worth proof / income proof.
11. A copy of IT returns of last 2 years. (Indian / Foreign)
12. 12. Undertaking from the employer for remittance of monthly installment, wherever feasible, if
stipulated in the sanction.
13. A salary certificate / income statement duly attested by our foreign office including susidiary office/
certified by the competant authority available in the country may be produced. This may also include
Chartered / Certified Accountants, officials of Inland Revenue Dept. (similar to Income Tax Authorities
in India) or any other agency specified for the purpose. Wherever attestation is not possible, this may
be submitted duly notarized.

For Self Employed:

(a) Balance sheets and profit & loss accounts of the business/profession along with copies of
individual income-tax returns for the last three years, certified by a chartered accountant
(b) A note giving information on the nature of business /profession, form of organization, clients,
suppliers etc

For PIOs:

A photocopy of the PIO Card or any of the under noted documents:-

• Current passport indicating birth place in India/abroad.

• Indian Passport, if held earlier
• Parents or grand parents passport with details there in substantiating his claim of being a
PIO

Property documents:

i. Receipt for payments made for purchase of the residential unit.

ii. Copy of approved drawings of proposed construction / purchase.
iii. Permission from competent authority for construction of flat/house
iv. Permission from competent authority under Urban Land Ceiling & Regulation Act,1976
v. Agreement for sale / sale deed / detailed cost estimate from Architect / Engineer for the property
to be constructed.
vi. Allotment letter from the co-operative society/ association of apartment owners.
vii. Other documents depending upon -
1. Property to be purchased directly from builder (ready / under construction).
2. Property belonging to a Registered Co-operative Housing Society.
3. Purchase in resale.
4. Direct sale by any Development Authority.
5. Construction of house on a separate plot of land.
PRE-SANCTION VISIT REPORT FOR RETAIL LENDING

1. NAME OF THE APPLICANT : Mr./Ms/Smt.

2. FATHER’S/HUSBAND’S : Mr.

3 RESIDENTIAL ADDRESS :

4. PURPOSE OF LOAN :

5a) NAME OF THE PRODUCT/

ARTICLE TO BE
PURCHASED
NAME OF THE SUPPLIER :
PRUCAHSE PRICE : Rs. (Inclusive of all taxes)

5b) GENUINESS OF : a) OVER PHONE NO.

QUOTATION VERFIED b) NAME OF THE PERSON CONTACTED

a) BY PERSONAL VISIT
b) NAME OF THE PERSON CONTACTED
6. DATE OF VISIT :
7. PROOF FOR VERIFICATION OF ( whichever is applicable)
RESIDENTIAL ADDRESS
Ration Card No. Voter ID Card Passport No./PAN No. Rental Agreement
No.
Electricity/Telephone bill (-1- bill older Whether residing with parents/relatives
than 6 months and –1- latest bill)
Residence is Owned Rented Leased Provided by Employer (  whichever is applicable)

Place visited with Identification Landmark

8. OCCUPATION OF APPLICANT (GIVE DETAILS)

A) (a) SERVICE (b) BUSINESS
i) Name of Employer Name of the firm
ii) Address Address

iii) Designation Applicants position in the firm

iv) Working Since Established since
v) Employee No. Nature of Business
vi) Whether confirmed/
probation / or on
contract basis
vii) Phone No. Office Residence Mobile

C) SELF-EMPLOYED & PROFESSIONAL

i) Occupation
ii) Address

iii) Phone No. Office Residence Mobile

9. EMPLOYMENT DETAILS
Details verified by/through
Personal visit to Office on Over Tel.No
Name of person contacted

10. GROSS ANNUAL / MONTHLY INCOME Rs.

Details verified from:
a. Form No.16 (for the financial year ended ……………)
b. Salary Slip (for the month of …………………...)
c. Income tax Return for ………. years (along with original copy of Tax Challan Period ………..)
d. Number of dependants
e. Total annual/monthly deduction Rs:
f. Net annual /monthly income Rs.

Page | 154
11. PRESENT BANKERS
Name of the Bank Branch
Type of A/c A/c No.
Details of A/c verified from Bank Statement/Pass Book (Copy obtained on record)
Cheque returned – number of times:

12. LOAN OUTSTANDING WITH OUR BANK WITH OTHER BANK

Name of the Branch :
Type of Loan :
Amount Sanctioned : Rs. Rs.
Balance Outstanding : Rs. Rs.
Amount of Overdues ,if any : Rs. Rs.
Asset Classification :

13. DETAILS OF THE PROPERTY TO BE PURCHASED (to be filled in case of Housing Loans)
(Loan requested for ()
Purchase of Ready Flat Purchase of Repairs & Take over Construction of
land Old House Renovation from Other house
Bank

Sale Amount : Rs.

Value as per Valuation Report, value :
indicated in the sale deed may also
Abe taken into account. In case of
wide variation, comments required.
Name of the person representing :
seller contacted & details verified
Area in Sq.ft. as per sale agreement :
Whether owner occupied or rented or :
leased out

a. Present stage of constructions

b. Report / Valuation from Architect / Engineer Obtained Yes No
c. Nearby landmark for identification:

EAST WEST

NORTH SOUTH

13. COMMENTS OF VISITING OFFICER

Place:_________________
_____________________________
Date: _________________ SIGNATURE OF BANK’S OFFICIAL

NAME :
DESIGNATION :

Page | 155
 BRANCH:__________________________________

PERIODIC ASSET VERIFICATION REPORT (POST DISBURSEMENT )-IN CASE OF RETAIL LOANS

1. Name of the Applicant :

2. Address of the place :
visited :Residence
/shop/office
Phone No.
3. Date of visit :
4 Sanction Details : Purpose of Loan Amount of Loan Date of Sanction
Rs.
5. Details of last : Date: :
Disbursement made Amount :
Mode :
By Bankers Cheque / DD No. Favouring
…………………………………. ………………………………
Present outstanding balance Rs……………..(with overdues if any
Rs……………………)
6. Whether Invoice & Stamp Receipt Obtained? YES / NO
IF YES:
Invoice No……………… Dated…………………. Issued by………………….
Receipt No……………… Dated…………………..
7. (a) Details of Goods / Articles / Furniture Purchased & Physically verified
Description :
Make / Model No. :
Colour :
Manufactured by :
(b) In case of Vehicle :
Type of Vehicle -Scooter / :
Moped / M-Cycle /Car
Make / Model No. :
Engine No. to be verified :
Chasis No. from the vehicle :
Colour of the vehicle :
Registration No. :
Condition of Vehicle :
Blank TTO forms obtained : YES /NO
Whether Bank's Lien Noted in : YES/NO
RC Book with RTO
Was the Vehicle brought to Branch for Inspection - Yes / No. If Yes, give date………….
Insurance Name
: of Insurance Co.
Valid upto
Whether Bank's clause is appearing in Insurance Policy:Yes/No
Under comprehensive : Yes/No.
8 In case of Housing Loan :
Loan availed for (  ) Purchase
:
Land
of Ready
Flat
Purchase
of Old
Repairs & Take over
Renovation
Construction of
from other house
House bank

Location /address of the Property :

Present Status/ Stage of Construction :

Status of Occupation (  ) : Self Occupied Rented Out Vacant
Value as per valuation report/approx. :
exp incurrent on repairs/ renovation
Date of last valuation :
Whether Insurance taken under Uni- : Yes / No If Yes, date……………………..
Home Care Policy/NIC-Baroda Home
Loan Suraksha Bima Policy
9 Date of Documents :
Last LAD obtained on :
10 Comments of visiting officer:

Place: ……………………………………
Date: (Signature of Bank's Official)
NAME:
DESIGNATION:

Page | 156
Annexure-21 (a)
BANK OF BARODA
………………………………. (Branch Name)
(on letter head of branch)

…………………………………
(Name of the Panel Advocate)

…………………………….
……………………………
……………………………
(Address)

Dear Sir,

Re: Your opinion report on the property situated at …………………. belonging to

…………………… for creation of equitable mortgage to secure credit facilities
to be sanctioned to ……………………………

We are considering following credit facilities to Mr…………………………..

Nature of facility Amount Purpose

(Rs.)

To secure the above credit facilities, equitable mortgage of the property situated at
………………………………. belonging to …………………………… has been offered.
We are sending the documents of the property with this letter and shall thank you to
please submit your complete Opinion Report in respect of the clear and marketable
title to the property, certifying non-encumbrances of the property.

Your report should be comprehensive and must cover the following points:

1 Name of Account & Proposed facility

2 Description & Area of property proposed to be mortgaged with boundaries

(a.Give the specific number & address of plot, house, bldg., flat, shop, etc.
b.State specifically whether property is in agricultural, non-agricultural,
commercial, residential or industrial, area.)

3 Name of mortgagor & his Status in the A/c (Whether Sole proprietor, Partner,
Director, Karta, Trustee, Agent or Guarantor or Co-borrower)

4 Whether the mortgagor has sufficient title and capacity to contract for creation
of mortgage (Not a minor, Lunatic or undischarged insolvent, etc.)

5 Nature of mortgagor's right or title in the Property(Whether lease hold, free hold,
co-owner, or joint owner or any other type-state specifically) and how it is derived

Page | 157
 (whether self acquired, ancestral/ inheritance or by succession or otherwise).

6 Whether Mortgagor is in exclusive possession of property proposed to be

mortgaged

7 Documents studied/scrutinized (In chronological order)

Sr. Type/Nature of Date of No. & Date of Parties

No Document Execution Registration/Lien in
revenue records/
builder's records/
society's records

8 Tracing of title & Chain of title in favour of Mr./Ms.____________ proposed

mortgagor(here set out chain of title in detail & in chronology starting from
earliest document available. The Nature of document/Deed conveying the title
should be mentioned along with the type of right it creates) together with names
and descriptions of Parties to the documents

9 Whether title is clear and property is free from any encumbrance (enclose relevant
receipts of search)
(a) No of Years (30 years normally) for which search made in
Subregistrar's/Registrar's Office
(b) If Name is mutated in municipal records and
(c) If Name is shown in Revenue/ Land records

10 Whether title to properties is clear, unambiguous, marketable & property is

saleable

11 Whether there is any Bar/ restriction for creation of equitable mortgage under
any Act, state law or rule/notification(like Ceiling Act, Land Acquisition Act, State
Coop. Societies Act, Societies Registration Act or Apartments/Flat Ownership Act
or Income Tax Act)

12 Whether any permission /consent/ no objection is required & if so, it is obtained

(State the letter no. and the Authority / Statutory Body/Court concerned)

13 Additional documents required/ formalities to be completed by the proposed

mortgagor(State specifically in case of flats / properties in coop. societies
whether allotment letter, possession letter, share certificate, affidavit, power of
attorney, etc is required)

14 List out the Title Deeds to be deposited to create mortgage by Deposit of Title
Deeds in favour of Bank by abovesaid mortgager Mr./Ms.______________

Page | 158
15 Whether all original deeds are available and scrutinised Deeds are duly
executed/stamped and registered. There is no doubt/ suspicion as to their
genuineness or existence

16 Final certificate/opinion

Please also note the following:

(1) The above are the minimum points/ broad heads to be covered / elaborated/
discussed in your report.
(2) These points/headings are indicative and not exhaustive, depending upon the
situation and circumstances.
(3) The opinion-cum-report has to be given by you personally on your letter head
under your signature.
(4) You are required to submit the opinion/ report only after getting all clarifications
and required documents, after thorough perusal and when fully satisfied.

Yours faithfully,

……………….
(RLF Head/Branch Manager)

Page | 159
Annexure-21 (b)

Format of Title opinion report to be submitted by the advocate

The AGM/Chief/Sr./Branch Manager

Bank of Baroda,
______________Branch

Dear Sir,

Sub: Title Opinion Report certifying non encumbrance of the Property no.
______situated at ________belonging to__________.

I refer to your letter No.______dated _________ requesting me to furnish non-

encumbrance and certify and submit the Title cum Opinion Report about the clear
and marketable title to the above property to be mortgaged for securing the credit
facility(s) granted / proposed to be granted to ________(Borrower).

1. Description and area of the property proposed to be mortgaged. Specific

number(s) and address of property along with boundaries and
measurements.

2. Nature of Property (Whether Agricultural, Non-Agricultural, Commercial,

Residential, Industrial. If Non-Agricultural, the reference and date of
conversion order from Competent Authority should also be mentioned).

3. Name of the Mortgagor/ Owner and status in the Account i.e. Borrower or
Guarantor and whether Individual, Sole Proprietor, Partner, Director, Karta or
Trustee. In case the Mortgagor is Partner / Director /Trustee. In case the
Mortgagor is Partner/ Trustee/ Director who is mortgaging the property on
behalf of Partnership/ Company/ Trust, whether he/she has the authority.
Copy of the Resolution/ Memorandum and Articles of the Association /Trust
Deed etc. whether examined and verified.

4. Whether any minor, lunatic or un-discharged insolvent is involved. Confirm

that the Mortgagor has sufficient capacity to contract. Precautionary steps to
be taken.

5. Whether the Property is freehold or Leasehold. If Leasehold then period of

lease and if Freehold whether Urban Land Ceiling Act applies and Permissions
to be obtained.

6. Source of the Property i.e. Self acquired or Ancestral. If Ancestral then mode
of Succession and whether Original Will/ Probate is available.

Page | 160
7. Whether the Mortgagor is Co-owner / Joint Owner and or any partition of the
property is made between the members of the family through Family Deed. If
yes, whether Original Registered Partition Deed is available or it is only a family
settlement.

8. Whether the Mortgagor is in exclusive possession of the property or it is

Leased/ Rented out to Third Party.

9. Whether the Property is mutated in Municipal/ revenue records and

Mortgagor’s name is reflecting and if not, the reason thereof.

10. Whether any restriction for creation of Mortgage is imposed under Central/
State/ Local Laws. If yes, then specify whose consent or permission would be
required for creation of Mortgage.

11. Whether all the Original Title Deeds including antecedent Title Deeds and
other relevant documents are available. Please give detailed list.

12. Whether the Advocate has personally visited the Sub-Registrar/Revenue/

Municipal Office and examined the records.

13. Whether the Search is being made for the period of -30- years. If no, reasons
thereof.

14. Details of documents examined/ scrutinised (this should be in chronological

order with serial numbers, type/ nature of document, date of execution,
parties, date of registration details including the details of revenue / society
records etc).

15. Tracing of the chain of title in favour of Mortgagor/ owner starting from the
earliest document available. The nature of document/ Deed conveying the
title should be mentioned with description of parties along with the type of
right it creates.

16. Whether there is any doubt/ suspicion about the genuineness of the original
documents. If yes, then specify.

17. The final Certificate of the Advocate confirming that title of the property(s) to
be mortgaged is examined by him and the same is / are clear and
marketable.

18. List of documents to be deposited for creation of Mortgagee by the

Mortgagor including any addition document required in addition to the
document available.

Page | 161
 19. Whether any additional formalities to be completed by the proposed
Mortgagor. If yes, state specifically in case of flat(s)/ property (s) in Co-
operative Society, whether allotment letter, possession letter, share certificate,
affidavit, power of attorney is required.

Signature of the Advocate

Note:

1. The Report should preferably be submitted on the Letter Head of the Advocate
2. The above points are indicative and not exhaustive. Report may vary depending
upon circumstance of each case.

Page | 162
Annexure 22- Format of Power of Attorney

Page | 163
Page | 164
Page | 165
Annexure –23

Execution of Documents by Power of Attorney: Format of letter to be obtained from

the Principal confirming that the documents executed by his Attorney.

(To be stamped as Agreement)

Date:
Place:
To
The Branch Manager
Bank of Baroda
_________________ Branch

Dear Sir,

Sub: Confirmation of Loan Documents executed by Mr/Mrs …………………………….

…………………… my/our constituted attorney for the …………………………………….
facility of Rs…………………………………………..availed by me / us from your Bank.

1. At my / our request Bank of Baroda ……………………. Branch vide their letter

No……….. dated ………………………sanctioned me / us following credit facilities on the
terms and conditions mentioned therein. I / We have accepted the same on
………………. by putting my / our signature on the said sanction letter:
(a)
(b)
(c)
(d)
2. At my/ our request bank has allowed me / us to execute the security documents and
creation of security through my constituted attorney, in respect of aforesaid credit
facilities sanctioned by the Bank. Accordingly Mr / Mrs ………………………….…. my / our
constituted attorney pursuant to Power Of Attorney granted by me on ……………………,
executed security documents and created mortgage by deposit of title deeds on
…………………., on my / our behalf.
3. Today, I / we have visited your branch and perused following documents executed
and mortgage by deposit of title deeds created by Mr / Mrs ……………………………… my
/ our constituted attorney:
(a)
(b)
(c)
(d)
4. I / We hereby confirm and ratify act done / documents executed, mortgage by
deposit of title deeds create by Mr / Mrs ………………………………. my constituted
attorney in favour of the Bank to secure aforesaid credit facilities granted by the Bank to
me / us. The said documents executed and mortgage by deposit of title deeds created
/ any other documents executed by my / our constituted attorney are valid subsisting
and binding on me / us. I / we waive all my /our rights to challenge these documents
before any forum and undertake to protect and save bank against all claims, losses,
damages, costs, expenses, actions, suits and other proceedings resulting from
documents executed by me / us on my / our behalf by my / our power of attorney
holder mentioned hereinabove.
Signature

1. Mr./Mrs…………………………………….

2. Mr./Mrs..……………………………………

Page | 166
Annexure-24
To be stamped
as per the Stamp
Act and
notarized

SPECIAL POWER OF ATTORNEY TO RECEIVE MORTGAGE

DOCUMENTS

TO ALL TO WHOM THESE PRESENTS SHALL COME, I / we (all names)

Mr.…………………………………………………………………………..…………….... aged about
…………years, Occupation, Service / business / agriculture, residing at
……………………………………………………..SEND GREETING.

WHEREAS:

(a) ………………………Branch of ……………………………………………Bank / Financial

Institution i.e., the Current Lending Institution
(hereinafter referred to as the CLI) had sanctioned housing loan facilities
amounting to Rs………………………. to me / us on ………………………and amongst
other terms and conditions of the sanction, one of the conditions was to create
equitable mortgage of the land and building belonging to
…………………………………………………. situated at………………….. more
particularly described in the schedule-I as mentioned hereunder and the same was
validly created on …………………………. by depositing the original title documents
and other link documents with the CLI and the details of the said documents are
shown as Schedule-II as mentioned hereunder.

(b) As per my / our request, Bank of Baroda, ……………………… Branch (herein after
referred to as the Bank) has agreed to take over the above Housing Loan account
along with the outstanding amount by sanctioning a fresh Housing Loan subject to
delivery and deposit of all mortgage documents which are now in the custody of
the CLI, and also necessary documents to be executed for the said purpose.

NOW KNOW YOU ALL AND THESE PRESENTS WITNESS THAT I / we (all names)
Mr…………………………………………………………………………… do hereby irrevocably
nominate, appoint and constitute the Bank to be my / our true and lawful attorney with all
authority to do and execute the following acts, deeds and things in my / our name / s and
on my / our behalf viz.

A. To demand and receive all original title documents and link documents deposited
by me / us ………………………………………………………………. with CLI, along with a
covering checklist through an Authorized Officer of the Bank holding an
authorization letter from the Bank in this behalf and to give a valid discharge
thereof to CLI.

B. To pay the balance outstanding amount standing in my / our name/s with the CLI
by way of a Banker’s cheque / Demand Draft equivalent of the outstanding

Page | 167
 amount together with interest and pre-closure charges, if any, on my / our behalf
and to receive No Due Certificate from the CLI as regards the repayment of their
dues.

C. To receive latest Statement of Account with respect to my / our housing loan

account from the CLI.

D. To sign, seal, execute, deliver, complete, perfect and record an Indenture of

Mortgage expressed to be made between myself / ourselves of the One Part and
the Bank of the Other Part in respect of the Schedule-I property, in case found
desirable, in such form and containing such covenants and conditions as the Bank
may deem fit, including the power to sell and to present the same for registration
with the Sub-Registrar of Assurances.

E. To do all other acts and things as may be required to be done to take over the
above secured housing loan from the CLI on my / our behalf.

AND I / we hereby ratify and confirm all and whatever my / our said attorney shall or
purport to do or cause to be done by virtue of these presents.

IN WITNESS WHEREOF I, Mr. ………………………... have put my / our hand this day of
………………….. 20

Signed and delivered by

the within named

In the presence of ________________________

Schedule I

Schedule II

Identified by me Before me.

NOTARY

Page | 168
Annexure- 26

Details of payment to Builders for generating Leads of Home Loans

Details of
Date of lead Amount of
Sr. Branch Name of information Date of Amount of Date of
generated Details of lead generator (Builder) Disbursem
No Name Borrower /document sanction Sanction disbursement Payment Details
by builder ent
s received

Name of
Authorised
Name Project person Signature Date of DD/
payment Ch.No Amt Name Signature

170
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Annexure-28:

UNDERTAKING TO CONSTRUCT THE HOUSE WITHIN 3 YEARS

Place :
Date :

Bank of Baroda

Branch

Dear Sirs,
Re : My /Our Housing Loan of Rs…………….……

1. I / We am / are fully aware that solely on my / our request and representati on

the Bank has agreed to grant me /us a Housing Loan of Rs…………….
(Rupees………………) out of which Rs …………………..for purchase of a plot and
Rs …………… for construction of house on said plot of the land.
2. I / We undertake to construct the house within 3 years from the date of
purchase of plot or any period allowed by Development Authority,
Government Authorities or the Bank, whichever is earlier.
3. In case I / we fail to construct the house or close the account without starting
the construction within stipulated period as mentioned in para 2 above, then
the Bank can charge commercial rate of interest (i.e. Base rate plus maximum
band rate declared by the Bank) from the date of first disbursement.
4. I /We waive our all rights to challenge the Bank’s decision for charging
commercial rate of interest.
5. I / we acknowledge and understand that on the faith of this undertaking the
Bank has agreed to sanction / disburse the Home Loan to me / us for purchase
of plot.

Yours faithfully

(Borrower /s)

Page | 174
Annexure-29

UNDERTAKING FOR EXTENSION OF TIME

Place :
Date :

Bank of Baroda

Branch

Dear Sirs,
Re : My /Our Housing Loan of Rs………………….…

1. I / We had undertaken to construct the house within 3 years from the date of
purchase of plot or any period allowed by Development Authority,
Government Authorities or the Bank, whichever is earlier.
2. I / We submit that the construction could not be completed within the
stipulated period as mentioned above due to reasons beyond my / our
control. On my / our request the Bank has agreed to extend the period for
………. Year(s) ( i.e. upto …./..../20....) for construction of house and / or waiver
of commercial rate of interest. I / We confirm that the said extension of time
and /or waiver of commercial rate of interest are provisional and the Bank on
its own discretion can withdraw the same at any time without referring to me /
us.
3. In case I / we fail to construct the house within extended period of two years
or happening of any eventuality as mentioned in para 2 above or close the
account without starting the construction within stipulated period as
mentioned in para 2 above, then the Bank can charge commercial rate of
interest (i.e. Base rate plus maximum band rate declared by the Bank) from
the date of first disbursement.
4. I /We waive our all rights to challenge the Bank’s discretion for extension of
time and charging commercial rate of interest.
5. I / we acknowledge and understand that on the faith of this undertaking the
Bank has agreed to extend the period of two years for construction and / or
waiver of commercial rate of interest.

Yours faithfully

(Borrower /s)
Page | 175
Annexure- 30
AGREEMENT FOR BARODA HOME LOAN ADVANTAGE
(For Linking Saving Bank Account)

STAMP AS AN AGREEMENT

THIS AGREEMENT made this Day of 20 by

Mr/Ms………………………………………. (hereinafter referred to as “the Borrower”
which expression shall wherever not repugnant to
the context mean and include its successors, legal representatives and assigns) in
favour of Bank of Baroda, a body Corporate constituted under the Banking Companies
(Acquisition and Transfer of Undertakings) Act, 1970 having its Head Office at Mandvi, Baroda
and a branch office at (hereinafter referred to as “the Bank” which
expression shall wherever not repugnant to the context mean and include its successors and
assigns) WITNESSETH

WHEREAS t h e Borrower has requested the Bank for credit facilities under Baroda Home Loan
Advantage. The Bank after evaluation of the proposal given by the Borrower sanctioned
Baroda Home Loan Advantage of Rs…. .

AND WHEREAS the borrower has agreed to open a designate Saving Bank Account
(hereinafter referred as SB A/c) with the Bank for the purpose of auto debit of EMI for the
aforesaid Baroda Home Loan Advantage facility. The Borrower has executed necessary
security documents and agreed to create / created security interest in favour of the Bank.

AND WHEREAS a t the request of the Borrower, the Bank has agreed to link SB A/c with
aforesaid Borrower’s Baroda Home Loan Advantage account.

NOW THEREFORE THE PARTIES TO THIS AGREEMENT HEREBY AGREE AND ASSURE AS FOLLOWS:-

1. The Borrower has understood the basic features of the Baroda Home Loan Advantage
account and SB A/c opened to service the EMI and other charge.
2. The borrower shall keep sufficient balance in the SB A/c to service the EMI and other
charges related to Baroda Home Loan Advantage account. The Borrower shall not be
entitled for any interest for the balance kept in SB A/c. However any credit available at the
end of the day in the SB A/c, after deducting EMI and other charges, will be counted for
credit in linked Baroda Home Loan Advantage account and the Borrower will get the
benefit of interest in the Baroda Home Loan Advantage account to the extent of
outstanding balance. The decision of the Bank shall be final in respect of the benefit of
interest to be given to the Borrower.
3. In case of insufficient balance in the SB A/c the Bank may recover penal interest and other
charges as mentioned in the Sanction Letter / Security Documents.
4. The Borrower shall not close the SB A/c till outstanding under Baroda Home Loan
Advantage account is not cleared.

Dated at this day of 20 .

(Signature of the Borrower/s)

Page |176
Annexure- 31

Job Card for Opening Baroda Home Loan Advantage Accounts and Linked Savings
Bank Accounts.

The Home Loan Advantage is the new product launched in our bank, wherein home
loan account is linked to a SB account and for interest calculation in the loan account,
the balance available in the linked SB account will also be taken into account. For this
purpose the following new loan schemes and SB schemes have been created :

Loan Scheme Details Linked SB Scheme Details

Target
S.No Scheme Scheme Scheme
Group Scheme Description
Code Description Code
BARODA RESIDENT
HOME LOAN LINKED SB
1 Residents LA183 HOME LOAN SB152
- Residents
ADVANTAGE
HOME LOAN LINKED SB
SB252 - NRE
Non BARODA NRI HOME
2 LA184
Residents LOAN ADVANTAGE
HOME LOAN LINKED SB
SB352
- NRO

Account opening in LA183 scheme will be permitted for resident customers only and
not for NRI/PIO customers.

The balances in SB152, SB252 and SB352 will not be reflected as part of Savings Bank
Deposits of the branch as it is mapped to the Term Loan GL. Hence even in Ascrom the
balance in respect of the Home Loan Advantage account will be the adjusted
balance i.e., loan balance minus the balance in the linked SB account.

In ‘scheme details’ the Repayment method has to be ‘E- Effective Batch Recovery’
only for Baroda Home Loan advantage accounts and the operative account number
should belong to SB152 for accounts opened under LA183 (Residents) and SB252 or
SB352 for accounts opened under LA184 (Non Residents).

Page | 177
If operative accounts of any other scheme are attached system will display the
message ‘Link can be done only for scheme type SB152’ when the final submit is done
as shown below and account will be opened only if account belonging to correct
scheme code is attached.

Page | 178
For NRI/PIO loan scheme LA184 the linked SB account should be of scheme code
SB252/SB352

IN OAAC menu also similar validations are there.

Page | 179
Other relevant points are the same as that of normal Housing loan account opening.

After opening the accounts the Branch may check in the accounts in ACIOption ‘ + ‘
(plus) for the status of linking with the operative account.

If the status is shown as ‘D’- delinked, the account is to be linked through ACM 
Option ‘ + ‘ (plus). The Branch should ensure the Linked status in the Home Loan
account.

Page | 180
Page | 181
Annexure-32

Draft of In Principle approval for Baroda Pre Approved Home Loan.

No…………….
Date:…..……………

Branch / RLF:______________________

Mr./Mrs./Ms………………………………..…
…………………………………………………………
…………………………………………………………
…………………………………………………………
…………………………………………………………

Dear Sir/Madam,

Re: ‘Baroda Pre-Approved Home Loan’ – In Principle Approval.

We thank you for your enquiry and your loan application dated ……………… for Home
Loan.

We are pleased to inform you that based on the information and details furnished by
you in your application, you are eligible to avail a Home Loan as under, subject to your
fulfilling the eligibility and other norms governing Baroda Home Loan Schemes.

Loan amount arrived in Principle: Rs……………………………

(Rupees…………………………………………only)
(Actual eligible loan amount will be arrived after detailed assessment and submission of
all the required documents)

Purpose :

Rate of Interest : ………..…% over Base Rate (Floating)

i.e.,…………… at present (Current Base Rate being ……………%)

Repayment Period :

182
Special conditions:

 The Loan amount has been arrived by our Bank based on the present prevailing
interest rate, which may subject to Change and as per the prevailing terms, and
conditions.
 The ‘in-principle’ approval shall be valid for -4- months from the date of issue.
 The unified processing charges, if any, deposited will not be refundable.
 Property papers will be required to be submitted by you within the validity of ‘Baroda
Pre Approved Home Loan’, i.e, within -4- months from date of issue of this ‘in-
principle’ approval.
 If you submit the required property documents with in the validity period, balance
amount of applicable unified processing charges only will be recovered from you
further on actual sanction of Home Loan as per the charges prevailing at the time of
actual sanction.

 The actual sanction of the loan will be subject to:

o Verification of original documents in respect of proof of
identity/residence/income and property.
o Legal and technical clearances (legal opinion by our empanelled advocate,
valuation report by our empanelled valuer, pre-sanction inspection to the
satisfaction of the bank etc) and all other rules of the Bank governing Home
Loans, as applicable from time to time. The decision of the Bank in this regard
shall be final.
o Creation of valid equitable mortgage over the land/house/flat as the case
may be.

Please note that you cannot demand above mentioned Home Loan as a matter of right.
The Bank has only examined your eligibility for Home Loan and the Bank’s decision shall
be final in respect of acceptance of property as security for Home Loan.

If the offer is acceptable to you, please sign and return copy of this letter as a token of
your acceptance.

Yours faithfully, Terms and conditions accepted.

Branch/Chief/Asst.General Manager. (Applicant)

183
Annexure-33(a):

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Page | 185
Page | 186
If the applicant is not eligible for any parameter like age etc. The screen will show the message as under:

Page | 187
 Annexure: 33 (b)

REF No. HL8333201 Date : 01-Sep-2015

Bank of Baroda
Retail Loan Factory
Patel and Sony Arcade, 1st floor, 234, Belalsis
Road
Nagpada Junction, Opp Sagar Hotel, Near
Byculla and Mumbai Central East, Mumbai -
400008
[email protected]

MR. …………….
(Address)

Dear Sir,

Re: ‘Baroda Home Loan’ – In Principle Approval Letter.

We thank you for your enquiry dated 01-Sep-2015 for Home Loan.

We are pleased to inform you that based on the information and details provided by you, you
are eligible to avail a Home Loan as under, subject to your fulfilling the eligibility and other
norms governing Baroda Home Loan Schemes.

Loan amount arrived in Principle: Rs. 4320000 (Fourty three lakh twenty thousand rupees only)
(Actual eligible loan amount will be arrived after detailed assessment and submission of all the
required documents)

Purpose : Purchase of House/Flat (NEW)

Rate of Interest : 0% over Base Rate (Floating) i.e. 9.9% at present(Current Base Rate being
9.90%)

Repayment Period : 300 (in months)

Amount of EMI : 38952 (Thirty eight thousand nine hundred fifty two rupees only)

Special conditions:
 The Loan amount has been arrived by our Bank based on the present prevailing interest
rate, which may subject to Change and as per the prevailing terms, and conditions.
 The ‘in-principle’ approval shall be valid for 15 days from the date of issue.
 The actual sanction of the loan will be subject to:

Page | 188
 o Verification of original documents in respect of proof of
identity/residence/income and property.
o Legal and technical clearances (legal opinion by our empanelled advocate,
valuation report by our empanelled valuer, pre-sanction inspection to the
satisfaction ofthe bank etc) and all other rules of the Bank governing Home
Loans, as applicable from time to time. The decision of the Bank in this regard
shall be final.
o Creation of valid equitable mortgage over the land/house/flat as the case may
be.
Please note that the above mentioned Home Loan is not available as a matter of right, as Bank
has only examined the eligibility for Home Loan and Bank’s decision in respect of acceptance
of property as security for Home Loan shall be final.
We once again thank you for giving us an opportunity to serve you and request you to contact
us along with the documents detailed below for processing and final sanction of the loan.

Yours faithfully,

Authorised Signatory.

Documents to be submitted along with regular application form for processing and final sanction
of the Home Loan for Resident Indian:

 Passport size photograph of all the applicants.

 Residence and age verification, which may be established from the PAN card, Election
ID, Passport, Driving License, Ration card or Adhar Card.
 Bank statements for the last six months.
 Latest salary slip (for 3 months) / statement showing all deductions in case of employed
applicants.
 Certified copies of Balance Sheets and Profit and Loss accounts, IT acknowledgments,
advance tax challans (for both company/firm and personal account) for the last three
years in case of self-employed applicants.
 Brief profile of the company / firm in case of self-employed applicants.
 Guarantor Details.
 Property documents.

This is a system generated E-Mail. Please do not reply to this E-Mail.

Page | 189
 Annexure- 34
TRIPARTITE AGREEMENT

This Agreement is made this ________day of ___________________20______

AMONGST

1. Shri / Smt._____________________, S/o / D/o / W/o Shri___________________, aged about ______ years,
residing at_________________________________________ 2. Shri / Smt. _____________________, S/o / D/o / W/o
Shri____________________, aged about_____ years, residing at___________________________________
(hereinafter called ‘Borrower/s‟ which expression shall, unless repugnant to the context or meaning thereof,
be deemed to and include his /her/ their respective survivor or survivors & the legal representatives, heirs,
executors or administrators), of the FIRST PART;

M/s ___________________________________________ a Private Limited Company incorporated under the

provisions of the Companies Act 1956, [OR] a Partnership Firm within the meaning of Indian Partnership Act,
1932, having its Registered Office at
________________________________________________________________________ [OR] Shri / Smt.
__________________________ running a Sole Proprietorship Concern under the name and style
M/s__________________________________ (hereinafter called „the Builder‟ which expression shall, unless
repugnant to the context or meaning thereof, be deemed to include his/ her/ their legal representatives,
heirs, executors, administrators / successors and assigns) [Income Tax P A No:____________________ ]
represented by authorised signatory Shri / Smt.________________________________, (authorised as per Board
Resolution dated ______________ of the Builder) of the SECOND PART;

AND

BANK OF BARODA, a body corporate constituted by and under the Banking Companies (Acquisition and
Transfer of Undertakings) Act, 1970 and having its Head Office at Baroda House, Mandvi, Baroda – 390 006
and Corporate Office at Baroda Corporate Centre, C – 26, G – Block, Bandra – Kurla Complex, Bandra
East, Mumbai – 400 051 and a Branch amongst other places at _______________________ (hereinafter called
the ‘the Bank‟ which expression shall, unless repugnant to the context or meaning thereof, be deemed to
include its successors and assigns) of the THIRD PART.

WHEREAS M/s________________________________________ having their office at

_______________________________being the absolute owner/s of the property described hereunder as
Schedule ‘A’ property (hereinafter referred to as the ‘Schedule ‘A’ property’) represented
by______________________(hereinafter called ‘the Seller’) have entered into an Agreement with the Builder
for developing the Schedule ‘A’ property and for construction of houses/apartments / flats as the case
may be.

WHEREAS the Seller has also by an irrevocable General Power of Attorney dated____________ registered
before the______________ S.R.O. as Doc. No._________________ duly authorised the Builder to develop
residential layouts in the Schedule ‘A’ property and to construct and to sell and to execute Sale Deeds in
favour of the intending purchasers of such residential layouts / Villas / Houses / Flats as the case may be.

WHEREAS the Builder after getting the lay out plan approved by_________________ Authority has
developed/resolved to develop / construct the Schedule ‘A’ property into a_____________________
(hereinafter referred to as ‘the Project’) consisting of Residential as well as Non-Residential buildings and
further authorised Shri __________________________ to do all the acts and deeds in this regard, including
execution of Sale Deed, Construction Agreement and all other requisite documents.

WHEREAS the Builder will as part of the project be constructing in the Schedule ‘A’ property a multistoried
residential building known as ‘______________________’ consisting of residential units, open / covered car
park, common areas, common lobbies etc. (hereinafter referred to as ‘the Residential Building’) and has
submitted requisite application before the________________________Corporation / Municipal Council / Gram
Panchayat for the said purpose and the same has been sanctioned and approved vide Permit No.
_____________________ dated _________________.

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WHEREAS the Borrower is desirous of purchasing one such residential unit to be constructed along with
undivided share in the Schedule A property, more fully described hereunder in Schedule ‘B’ with all
amenities and common facilities attached thereto (hereinafter referred to as ‘the Schedule „B‟ property‟),
and has approached the Builder for purchase of the Schedule ‘B’ property.

WHEREAS the Borrower has entered into an Agreement for Sale / Development Agreement and Agreement
for Common/Additional Areas & Amenities (hereinafter referred to as ‘the said Agreements’) with the
Builder on_____________, _____________ and on _____________ respectively for purchase and/or construction
of Schedule ‘B’ property with the specifications mentioned in the said Agreements and the Builder has
agreed to construct, hand over and transfer all right, title and interest in respect of the Schedule ‘B’
property along with amenities to the Borrower for the latter’s peaceful vacant possession and enjoyment,
on the terms and conditions mentioned in the said Agreements, for the Sale Consideration mentioned in
the said Agreements and the Borrower has agreed to pay the Sale Consideration subject to the terms and
conditions mentioned in the said Agreements. The time mutually agreed by the Borrower and Builder for
completing the transaction / construction as per the said Agreements is_______th month from
_______________ / the date of Approval of Plan by _____________________ with a grace period of _______ (
____________ ) months.

WHEREAS the Borrower has approached the Bank for financial assistance (hereinafter referred to as the
‘Loan’) for purchase of the Schedule ‘B’ property and the Bank has agreed to sanction the Borrower the
Loan upon terms and conditions set out in the Bank’s Sanction Letter No._______________________
dated______________and those contained in the Loan Agreements executed / to be executed by the
Borrower in favour of the Bank as also on the conditions set out hereunder.

WHEREAS one such condition contained in the Bank’s Sanction Letter is that the Borrower shall create
security by way of Mortgage / Charge of Schedule ‘B’ property in favour of the Bank and the Builder shall
give free consent and render all requisite assistance to the Borrower to create Mortgage / Charge on
Schedule ‘B’ Property in favour of the Bank.

WHEREAS the title to the Schedule ‘B’ Property shall be conveyed by the Builder unto the Borrower/the Co-
operative Housing Society or the Limited Company of which the Borrower will be taken as a member,
after___________ months / years, viz., the time mutually agreed by the Borrower and Builder as per the said
Agreements.

WHEREAS the Borrower is not in a position to create Mortgage by deposit of title deeds / Charge in respect
of the Schedule ‘B’ Property for the time being, since the absolute Sale Deed will be executed by the
Builder in favour of the Borrower the Society or the Limited Company of which the Borrower will be taken as
a member, only upon completion of construction of Schedule ‘B’ Property and upon payment of full Sale
Consideration of the Schedule ‘B’ Property by the Borrower.

WHEREAS the Borrower and the Builder have jointly requested the Bank to disburse the Loan to the Borrower
on the basis of the said Agreements as also on the covenants / representations of the Builder / Borrower
herein in the absence of sale deed by the Builder in favour of the Borrower and/or formation of a Co-
operative Housing Society or Limited Company and the Borrower being taken a member thereof and the
Builder has agreed /undertook to execute requisite documents conveying title in favour of the Borrower/
Co-Operative Housing Society or Limited Company, the Borrower will be taken as a member whereof.

AND WHEREAS the Bank has agreed to sanction the Loan to the Borrower based on the representations /
declarations / undertakings of the Borrower and the Builder herein and further subject to the terms
contained in this Agreement.

NOW IN CONSIDERATION of a sum of Rs. ___________________ (Rupees

______________________________________ Only) already deposited by the Borrower with the Builder on
________________ as initial payment for purchase of the Schedule ‘B’ Property and a further sum of
Rs.____________________ (Rupees ______________________________________ Only) to be paid by the Bank
directly to the Builder from the Loan account of the Borrower as per the demands for payment by the
Builder as agreed to between the Borrower and the Builder, it is hereby agreed, declared and undertaken
as follows: -

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1. The Builder has absolute right, title and saleable interest over the Schedule ‘A’ & Schedule ‘B’
Property. The Builder declares that the entire property is not subject to any mortgage or charge in
favour of any other financial institution or bank or any other creditor and is free from all sorts of
encumbrances. The Builder has not entered into any other Agreement with any persons / parties in
respect of the Schedule ‘B’ Property, other than the Borrower.

2. The Builder has obtained all requisite permissions/approvals/sanctions for construction of Schedule
‘B’ Property from all the competent authorities concerned and undertakes to construct the same
in accordance with the approved plans. The Borrower has examined and is satisfied with the title of
the Builder over the said properties and about the approvals.

3. The Builder has no objection to the Bank giving a loan to the Borrower and creation of charge over
the Schedule ‘B’ Properties in favour of the Bank by way of security for the loan granted to the
Borrower and has noted the lien of the Bank over the Schedule ‘B’ Property.

4. This Agreement shall be in addition to the said Agreements entered into by the Builder / Borrower
and shall be enforceable notwithstanding any of the terms and conditions contained in the said
Agreements between Builder and Borrower and in case of any contradiction the terms hereof shall
supersede, and binding.

5. The Borrower hereby irrevocably, voluntarily and unconditionally authorise the Bank to disburse the
Loan, directly to the Builder without reference to the Borrower and merely on production of Quote
/ Demand Note / Estimate /Certificate/ Bill by the Builder provided there is no dispute regarding
the Quote / Demand Note / Estimate /Certificate/ Bill while making payment as above. Any
disputes / protests shall be resolved by the Borrower and the Builder without reference to the Bank.
In case the payment to the Builder is delayed due to such disputes / protests, the Bank shall not be
liable under any circumstances for the damages / loss caused / likely to be caused to the Builder
or to the Borrower.

6. The Borrower herby declares that the payment made in the above manner by the Bank to the
Builder shall be as effective and binding on him as if the payment is made through the Borrower.
The Borrower shall not question such disbursement at any time. Further, the payment as mentioned
above shall be valid discharge by the Bank.

7. Notwithstanding anything to the contrary contained herein, the Bank may at its sole discretion
refuse to disburse the Loan, until: -

a) The Borrower pays his own contribution in full to the Builder, i.e., the cost of Schedule ‘B’
Property (including escalation, if any) less the loan and / or,

b) Progress and need of construction evidenced by the Certificate of Architect justifies (the Bank
being the sole judge thereof) the disbursement requested.

8. Notwithstanding the disbursement of Loan to the Builder, the Borrower shall continue to be liable to
pay the installments / dues in respect of the Loan with the applicable rate of interest fixed by the
Bank along with other costs and expenses and subject to the Terms and Conditions set out in
Bank’s Sanction Letter No.______________________ dated _______________ and the loan documents
executed by the Borrower in favour of the Bank, whether or not the possession of Schedule ‘B’
property was received by the Borrower.

9. The increase / escalation of Cost of Construction shall not affect the liability of the Bank in making
disbursement as above and any increase / escalation shall be borne / met by the Borrower and
the Bank’s liability to make payment to the Builder shall not exceed Rs.__________________ (Rupees
______________ __________________ Only) at any time.

10. Disbursement of the amount under the Loan to the Builder shall be purely the discretion of the Bank
and the Builder / Borrower shall not, as of right, demand any amount or part of the amount under
the Loan.

Page | 192
11. The Bank shall not be liable to pay existing and future rates, taxes, cesses, assessments and all other
impositions whatsoever now or hereafter charged or levied or imposed in respect of the Schedule
‘A’ or Schedule ‘B’ properties, including water taxes and all other impositions whatsoever.

12. The Borrower undertakes that he shall not, without the prior written consent from the Bank,
exchange the Schedule ‘B’ property for any other unit.

13. The Builder undertakes to the Bank that he shall bring to the knowledge of the Bank the request, if
any, of the Borrower to exchange the Schedule ‘B’ property for any other unit and further binds
himself that he will not accept any such request of the Borrower without the prior written approval
of the Bank.

14. The Builder shall maintain a separate account for the Borrower and adjust the payment received
by it from the Bank / Borrower against the cost of the Schedule ‘B’ Property.

15. Notwithstanding anything contained in the said Agreements, the Bank shall always have the first
charge over the Schedule ‘B’ Property, until and unless the entire dues outstanding in respect of
the Loan to the Borrower is fully realized / recovered with updated interest at the applicable rates
and other charges. The Builder cedes First Charge in respect of the Schedule ‘B’ Property in favour
of the Bank.

16. The Borrower / Builder agree and undertake that on completion of construction of the Schedule ‘B’
Property, its possession shall be handed over to the Borrower subject to the confirmation from the
Bank along with the Conveyance of title / Sale Deed / Possession Letter (Originals whereof the
Builder shall hand over on behalf of the Borrower to the Bank in terms of clause 16 hereof), once
the Borrower complies with the payment terms and conditions as contained in the said
Agreements. The Builder further agrees and undertakes that without obtaining prior written
approval from the Bank the Builder shall not part with the possession of Schedule ‘B’ Property to the
Borrower and retain possession thereof for and on behalf of and in trust for the Bank.

17. The Builder shall execute a sale deed with respect to Schedule ‘B’ Property in favour of the
Borrower or in favour of Co-operative Housing Society / Limited Company of which the Borrower
shall be taken as a member/shareholder and shall give prior notice in writing to the Bank regarding
the registration of the same. The Builder agrees and undertakes that he shall not, due to any
reason whatsoever, delay the execution of sale deed as aforesaid in favour of the Borrower / Co-
operative Housing Society/Limited Company.

18. The Builder undertakes that in and towards the mortgage and further deposit of title deeds in
favour of the Bank the Builder shall hand over the original title deed/Possession Letter/Share
Certificate in respect of Schedule ‘B’ properties directly to the Bank without parting the same to
the Borrower during the pendency of the Loan. The Borrower / Builder irrevocably authorise the
Bank to collect from the concerned Registrar of Assurances the Conveyance Deed / Sale Deed
which will be executed in favour of the Borrower by the Builder.

19. In case of any delay on the part of the Builder or if the Builder fails or refuses to execute Sale Deed
in favour of the Borrower and hand over possession of Schedule ‘B’ Property even after receipt of
the entire payment as mentioned in the said Agreements, or even after the expiry of ______ th
month from ____________ the date of Approval of Plan with a grace period of _______ (
_____________ ) months or if the said Agreements are cancelled for any reason or if the Borrower
dies, the Bank will have full discretion, however without being bound to exercise such discretion, to
step into the shoes of the Borrower and the Bank shall have all the rights to take all requisite steps
for getting the Sale Deed executed in its favour and/or take possession of the Schedule ‘B’
Property. In such case the Builder shall be liable to pay the expenses, costs etc. incurred by the
Bank in connection with the same and the Bank shall be entitled to recover the same from the
Builder in addition to the damages for non-completion of construction of the Schedule ‘B’ Property.
In case the Bank decides not to take the Schedule ‘B’ Property, it shall have the right to obtain
refund of all the amounts received by the Builder in respect thereof, whether from the Borrower or
from the Bank, with interest @ _________% per annum calculated at monthly rests. To the extent of
the said amount, interest and costs / expenses the Bank shall have first charge on the Schedule ‘B’
Property, till the said amount, interest and costs / expenses are recovered. The Bank shall refund

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 the balance, if any, to the Borrower or the person entitled thereto after adjusting the entire
outstanding dues, including interest, costs and other amounts recoverable by the Bank from the
Borrower in respect of the Loan.

20. The Builder and Borrower undertake that during the currency / subsistence of the Loan the Builder /
Borrower shall not alienate / transfer / lease / mortgage / encumber in any manner Schedule ‘B’
Property without the prior written consent of the Bank. In the event of alienation / transfer / lease /
mortgage / encumbrance of the Schedule ‘B’ Property without obtaining permission as above the
Builder / Borrower shall be liable to pay liquidated damages to the Bank. The Builder and Borrower
further jointly and severally agree and undertake to keep the Bank, its Managers, Agents, Officers
and Servants and their respective estates and effects safe and saved harmless and indemnified
against all actions, losses, costs, charges, expenses and demands whatsoever in case of any such
event from time to time and at all times hereafter.

21. In the event the Borrower fails to adhere to any of the Sanction Terms and conditions contained in
Bank’s Sanction Letter No.______________________ dated______________ or any the security
documents, the Bank shall be, at its sole discretion, at liberty to recall the Loan and to enforce the
security by all means available to it, without reference to and without taking into account the
protest (if any) of the Builder.

22. In consideration of the Bank agreeing to sanction the Loan in the account of the Borrower, inter
alia, against Mortgage / Charge of the right, title and interest of the Borrower / Builder in the
Schedule ‘B’ Property and the Borrower / Builder at the same time agreeing and undertaking to
execute at Borrower’s / Builder’s own costs whenever called upon a proper conveyance in favour
of the Borrower and Mortgage of the right, title and interest in the said properties of the Borrower /
Builder to secure the Loan with updated interest at the applicable rate and at the same time also
agreeing to execute an irrevocable Power of Attorney in favour of the Bank for executing the said
conveyance in favour of the Borrower and Mortgage / Charge in favour of the Bank, the Borrower
/ Builder do hereby nominate constitute and appoint the Bank to be their true and lawful attorney
for and in the name and on behalf of the Borrower / Builder, to do and perform the acts and
deeds such as signing, sealing, execution, delivery, completion, perfection and recording any
entry relating to creation of Mortgage or an Indenture of Mortgage to be made between the
Borrower / Builder of the one part and the Bank of the other part in respect of the Schedule ‘B’
Property in such form and containing such covenants and conditions as the Bank may deem fit,
including the power to sell and the power to appoint Receiver of the said property and all other
powers, provisions and conditions as are usual in a mortgage for securing repayment of the said
Loan to the Bank with updated interest at the applicable rate of interest or of the money as and
when due and owing to the Bank in respect of the said Loan and lodge such deeds, documents
and writings for registration with the Registrar of Assurances and admit execution thereof and
deposit title deeds with the Bank and to apply for registration of the said property under the
provisions of any applicable Act(s) relating to ownership for the time being in force in the State.

23. The Borrower / Builder further empower the Bank to incur and reimburse out of Loan all costs,
charges and expenses that may have to be spent to give effect to the provisions contained
herein. The Bank being a body corporate, any person/s authorised by the Bank may exercise all or
any of the powers, authorities and discretions conferred hereby upon the Bank and may delegate
all or any of such powers, authorities and discretions to such of the Officer/s or other person/s and
on such terms and conditions as the Bank or its authorised Officer/s or any constituted attorney or
other person/s appointed by it with such power to delegate may deem fit and accordingly all
deeds and documents executed and acts performed by any such person/s shall be binding on the
Borrower / Builder.

24. The Borrower / Builder further empower the Bank to execute, do and perform all such deeds,
instruments, acts, matters and things in relation to the said property as the Bank shall think
necessary or expedient as fully and effectually in all respects as the Borrower / Builder would have
done if personally present and the Borrower / Builder do hereby agree to ratify and confirm and
covenant for himself / herself / itself and his / her / its heirs, executors, administrators and assigns to
ratify and confirm all and whatsoever the Bank shall lawfully do or cause to be done in or about
the premises by virtue of these presents. And the Borrower / Builder doth declare that the authority

Page | 194
 shall be irrevocable until the said Loan with interest thereon and other charges in full shall be
repaid to the Bank.

25. The Builder/Borrower shall give due notice of the Bank’s charge over the Schedule ‘B’ Property to
the Co-operative Housing Society / Limited Company as and when formed and shall take
necessary steps to get the lien of the Bank noted in Society’s / Company’s books.

26. Soon after getting the Sale Deed registered in favour of the Borrower/the Bank and delivery thereof
to the Bank and the delivery of possession of Schedule ‘B’ Property to the Borrower/the Bank, the
liability of the Builder shall be discharged and this Agreement shall become void and
unenforceable as against the Builder.

27. The covenants contained herein shall not be construed to mean and fasten any liability upon the
Bank to observe the payment schedule, if any, between the Builder and the Borrower or make
payments to the Builder. Bank shall not be liable for any delay or omission in disbursement on
account of breach / default attributable to the Borrower / Builder. The Borrower shall be
responsible to fulfil his obligations also and follow up with the Bank to make disbursement on his
behalf as per his arrangement with the Builder.

SCHEDULE “A” PROPERTY

(Please mention the full particulars as appearing in the Sale Deed in favour of the OWNER/ Development
Agreement in favour of the BUILDER )

SCHEDULE „B” PROPERTY

(Please mention the full particulars as appearing in the Sale Agreement / Construction Agreement in favour
of the BORROWER. This property shall be undivided share in the land and/or Flat / Residential unit / Villa)

IN WITNESS WHEREOF THE PARTIES HERETO HAVE SIGNED AND EXECUTED THIS AGREEMENT ON THE DAY AND
THE YEAR FIRST ABOVE WRITTEN

SIGNED AND DELIVERED by the

BORROWER ___________________________

SIGNED AND DELIVERED for and

on behalf of the OWNER / BUILDER,
by the hand of Shri/ Smt._______________________
its Authorized Signatory

SIGNED AND DELIVERED for and

on behalf of the BANK, by the hand of
Shri/ Smt.____________________________
its Authorized Signatory

BEFORE ME
- NOTARY-

Page | 195
 LEAD SUBMISSION FORM
Annexure: 35
Details of Lead Generator- Staff of Bank of Baroda
Date of Submission:
1. Name of Staff Member
2. E.C. No.
3. Grade/Scale
4. Designation
5. Branch/ Office
6. Phone No.
7. Mobile No.
Lead Information
8. Name of Applicant Mr./Mrs./Ms.
9. Residential Address

Pin Code;
10. Phone No.
11. Mobile No.
12. Office/Business Address

Pin Code:
13. Overseas Address in case of
NRI.

14. Country (in case of NRI)

15. Home Loan Scheme Requested (Tick where applicable)
Baroda Home Loan to Individuals
Baroda Home Loan to NRI/PIO
Baroda Home Loan Advantage
Baroda Home Improvement Loan
Baroda AAA Loan
16. Amount of Loan Requested Rs.
17. Purpose of Loan
18. Applicant’s relationship with
you, if any. (specify)
19. Source of lead generation Personal Contact
(Tick the applicable) Reference by friend/relative
Reference by other customer
Reference through Dynamic monitoring Report/
Online applications/queries received through e-mail.
During the visit of customer at Branch/RLF
Any other mode (specify)
20. When/How did you contact the Date:
applicant. Time:
Personal visit to Residence
(Tick the applicable)
Personal visit to Office
Over phone
Reference by friend/relative
Any other mode
21. Applicant’s nearest Branch/RLF.
22. Documents submitted, if any,
alongwith lead generation form

(Signature)
Name of the staff.

Page | 196
 LEAD SUBMISSION FORM
Annexure: 35

ACKNOWLEDGMENT

Receipt No.:

Tracker ID (Online Loan Tracking System):

Received Lead Generation Form from Mr./Mrs./Ms. …………………………………………………

EC No…………………… working as ……………………………….…….. in ………………...…………….
Branch/Office on ………………………………..

List of Documents received along with Lead Submission Form:

1.

2.

3.

4.

Signature :
Name :
EC No. :
Designation :
Branch/RLF :

Page | 197
 LEAD SUBMISSION FORM
Annexure: 35

For office use only:

1. Date of Receipt of Lead Generation form

2. Receipt No.

3. Tracker ID (Online Loan Tracking System):

4. Date of receipt of application from Applicant

Date of receipt of set of full documents from
5.
Applicant.
6. Date of Sanction/ Rejection

7. In case of rejection, reason for rejection.

8. Date of first disbursement of Loan

Lead Generation exclusively by staff member –
Verified/Confirmed (Yes/No).
9.
Comments if any.

10. Eligible amount of Incentive for staff member

Date and amount of payment of Incentive to

11.
staff member

Date: Signature Branch/RLF Head.

Page | 198
 Annexure-36 (a)

Application / Loan account No.

Source of application (Direct / ULBs/Designated Agency / Others)

Name of ULB / Designated Agency / Others

APPLICATION FORM FOR HOME LOAN

UNDER PRADHAN MANTRI AWAS YOJANA

PHOTOGRAPH PHOTOGRAPH
OF OF
APPLICANT CO-APPLICANT
Signature or Thumb Signature or Thumb
Impression Impression
To,
THE BRANCH MANAGER
MODEL BANK
------------------------------------
I/We request for a loan of Rs.________________ for Purchase of Flat/House / Construction of House /
Extension/(Improvement) of House. I/We furnish our particulars as below:

A. PERSONAL INFORMATION
APPLICANT CO-APPLICANT
1. Name (in block letters) First Middle Last First Middle Last

2. Fathers’/Husbands’ name
3. Mothers’ Maiden Name
4. Relationship of Applicant with XXXX
Co-Applicant
5. Age & Date of Birth
_____ yrs. DD/MM/YY _____ yrs. DD/MM/YY
6. Sex MALE / FEMALE/ TRANSGENDER MALE / FEMALE/ TRANSGENDER
7. Category SC/ST/OBC/GEN/Minority/PWD/ SC/ST/OBC/GEN/Minority/PWD/
Manual Scavengers/Others Manual Scavengers/Others
8. Religion
9. Marital status [Married / unmarried/Others] [Married / unmarried/Others]
10. No. of Dependents [Household Children Others
Size]
11. Unique Identification No.[any PAN Card / Aadhaar No./ Voter’s PAN Card / Aadhaar No./ Voter’s Card
one] Card Driving License /MNREGA No./ Driving License / MNREGA No./
Any Other Number or A Certificate of Any Other Number or A Certificate of house
house ownership from Revenue ownership from Revenue Authority of
Authority of Beneficiary’s Native Beneficiary’s Native District, etc.
District, etc.
12. Nationality & Identification
Proof
13. Employment Category Salaried / Self Employed / Others Salaried / Self Employed / Others
14. Residential Address with Pin
Code
(a) Current Address
(b) Permanent Address
(c) Residence Proof
15. Tel. No. & Mobile No.
16. Period of stay at the above
Address
17. Educational/Professional Non-Matriculate/Matriculate/ Non-Matriculate/Matriculate/
Qualification Under graduate / Graduate/Others Under graduate / Graduate/Others
18. Household Annual Income
(in Rs)
19. Income Proof Source Proof Source
20. Household Income Category (EWS) / (LIG)
21. Existing Loan Details (if any) Loan 1 Loan 2 Loan 3 Loan 4
22. - Type and Size House/Flat/others Carpet area <30 sq.m. /<60 sq.m/Others
_______
23. Ownership details of existing Owned Rent Inherited Otherwise
house

199
24. Property Address with Pin Code

B. EMPLOYMENT STATUS
1. Particulars Self- Self-
employed/salaried/regular employed/salaried/regul
wage/labour/others ar wage/labour/others
2. Name of Employer/
Nature of Business/Profession
3. Address with telephone number of Employer
/Business/Profession
4. If employed Designation and Employee number
5. No of years in present occupation/Business/profession
6. Total Length of service
Date of Retirement / If retired DD/MM/YY DD/MM/YY

C. HOUSEHOLD INCOME STATEMENT

1. Gross salary/Income per month
(salary sheet / I.T.Return, form No.16)
2. Deductions Income Tax
Professional Tax
Provident Fund
Insurance Premium
3. Other deductions including loan EMIs
4. Net Salary / Income p.m.
5. Other Income if any

D. DETAILS OF BANK ACCOUNTS

1. Name of the Bank/Branch
2. Account Number/s
[Attach last 6 months statement]
3. Since When

E. DETAILS OF PROPERTY PROPOSED TO BE PURCHASED/CONSTRUCTED/OTHERS

ALL 4041 STATUTARY TOWNS AS PER CENSUS 2011 WITH FOCUS ON 500 CLASS I CITIES WOULD BE COVERED

1. Address of the plot/flat /house with Pincode

Names and address of the seller /builder / housing

2. society/housing board /housing dev. Authority.
3. Area Of The House/Plot/Flat/Others/Please specify
(Built Up Area & Carpet Area In Case Of Flat & Land Area (Sq. m.)
Land Area And Built Up Area In Case Of House) Built Up Area (Sq.m.)
Carpet Area (Sq. m.)
5. In Case Of Lease Hold Property Unexpired Period ______ Years
Of Lease
6. Age Of Flat/House In Case Of Repurchase ________ Years
7. Location Code (Location Code should be based on Census 2011 for 4041
Statutory towns)
8. Loan Purpose (a)New Unit (b)New Unit Construction(c)Existing Unit(d)Existing
Unit Extension (e ) Repairs /Renovation(f)Others where subsidy is
not available

F. LOAN DETAILS ; Purchase of Flat/House / Construction of House / Extension/(Improvement) of House

1. Estimate Of Uses Of Funds Amount (Rs) Estimate Of Sources Of Funds Amount (Rs)
2. Cost Of Purchase Loan Requested
/Construction/Repairs/
Improvement/Extension.
3. Registration Fees Savings In Bank
4. Stamp Duty Encashable Investments
5. Any Other Costs Amount Already Spent
6. Incidental Costs Loan From Relatives
7. Insurance Other Source (If Any)
8. Total Total
9. Option For Payment of Interest Fixed Rate Basis / Floating Rate Basis

10 Mode of Repayment ECS/ SI/ PDC/ NECS/ CASH

200
 11 Number of Years 10 / 15 / 20 / 25

12 Existing Loans / borrowing Asset owned

G. REFERENCE
Name, Address & Contact Nos. Relation
1.
2.

DECLARATION
I/We certify that the information provided by me/us above and in annexure are true, accurate, complete and up to date
in all respects. I /We have not withheld any information. Bank is at liberty to verify and take any such action as it may
deem fit if my/our statements are found to be untrue. I/We understand that all of the above-mentioned information shall
form the basis of my/our loan/subsidy that Bank may decide to grant to me/us at its sole discretion. I/We confirm that the
copies of Financials, Bank Statements, Title/Legal Documents, etc. submitted by me/us along with my/our loan
application are true copies. I/We further acknowledge Bank has right to seek any information from any other source in this
regard. I/We further acknowledge that I / We have read, understood and agree with the Most Important Terms and
Conditions governing the home loan product chosen by me/us. I/We are bound by the terms and conditions of the
facility/ies that may be granted to me/us. I/We authorize Bank to debit my home loan account with the Bank for any fees,
charges, interest etc. as may be applicable, other than the processing fee. I/We also agree and acknowledge that Bank
remains entitled to assign any activities to any third party agency at its sole discretion. I/We further acknowledge the right
of Bank to provide details of my/our account to third party agencies for the purpose of availing support services of any
nature by Bank without any specific consent or authorization from me/us. I/we authorize Bank to exchange, share, or part
with all the information relating to my/our loan details/repayment history / information to other Bank branches / Banks /
Financial Institutions / RBI / CIBIL / Credit Bureau / Agencies / Statutory Bodies as may be required and shall not hold Bank
or/& its agents liable for use of this information.

Place:
Date: Signature 1 Signature 2

Vernacular witness, if applicable:

I ________________________________S/o, D/o, W/o __________________________________hereby declare that the contents of
this application form were read and explained to me in ____________________________by _____________________________
and I have understood the same.
(Sign of borrower/s)
Witness Name __________________________________Signature ________________________________
Address_________________________________________________________________________________

Acknowledgement Receipt

Loan application No. __________________________ received on DD/MM/YYYY. Complete document set received on
DD/MM/YYYY.
Institution did not charge any for processing fee for the housing loan. Application will be disposed-off and
acceptance/rejection notification would be intimated within 15 days from date of receipt of completed application
form with supporting documents.

Place:
Date: Signature Seal

201
 Annexure-36(b)

Purchase of Flat/ House /Construction of House /Extension (Improvement) of House

DOCUMENTS FOR SUBMISSION

(Please tick whichever are enclosed)

i. Application Form duly filled in

ii. Self-declaration – EWS/LIG Income certificate
iii. Self-Affidavit Income Certificate (only if the income is below taxable limit)
iv. Unique Identification -
PAN Card / Aadhaar No./ Voter’s Card Driving License /MNREGA No./
Any Other Number or A Certificate of house ownership from Revenue
Authority of Beneficiary’s Native District, etc.
v. Nationality Identification Proof
vi. Proof of category (belonging to SC/ST/OBC/Minority etc.)
vii. Copy of Address Proof
viii. Income Proof - Original Salary slip / salary Certificate /other income.
ix. Latest I.T. Return/ I.T. assessment Order/Form no 16 if applicable
x. Statement of Bank Accounts – last 6 months
xi. A brief note on the nature of business/ activity / self-drawn attested
financial statement / business license in case of self-employed.
xii. Valuation certificate from the approved Valuer, if not valued earlier.
xiii. The approved plan of Construction.
xiv. Architects/Engineers Certificate confirming cost of construction / cost of
repairs / Cost of improvements / cost of Extension.
xv. Architects Certificate confirming expected life, fitness and future of Flat /
House in case of purchase.
xvi. Agreement for construction with Builder/Developer
xvii. NOC from Housing Society / Competent Authority
xviii. Affidavit-cum-Undertaking to the effect that the construction is in an
authorized area, construction is strictly as per sanctioned plan/building bye-
laws, loan is being availed for acquiring plot/house/flat for residential
purpose only.
xix. Receipt of advance payment made to builder / seller. If any
xx. Affidavit from the beneficiary that either he / she or any of the family
members do not own a pucca house (all weather dwelling unit) in any part
of India.
xxi. Letter of Allotment of Property (where property is proposed to be
purchased from builder / housing boards, etc)/OR Agreement to Sale
(where resale property is proposed to be purchased), Title deeds / Lease
Deed / Mutation in respect of pre-owned property, which is to be
extended.

ACKNOWLEDGEMENT TO THE APPLICANT FOR APPLICATION

We have received home loan application from Mr/Ms____________________________

along with a copy of the documents (whichever ticked above)

Place:
Date: Signature Seal

202
Annexure-36 (c)

SELF DECLARATION – EWS/LIG INCOME CERTIFICATE

(only if it is below taxable unit)

I………………………………..,S/o/D/o………………………....................., aged .…. years,

residing at ………………………… do hereby declare that;

1. I have applied for Housing Loan under EWS/LIGScheme

ofPradhanMantriAwasYojana Credit Linked Subsidy Scheme.

2. Household annual income from all sources isRs………………(Rupees

………………………………..………………..).

3. I understand and accept that if at any stage, it is found that the information
given by me is false/not true, allbenefits given to me under the schemes would
bewithdrawn and legal action as deemed fit, would be taken against me.

Date:
Place:

Signature

203
 Pradhan Mantri Awas Yojana

Housing for All (Urban)

Scheme Guidelines
2015

The Joint Secretary (Housing for All)

Ministry of Housing & Urban Poverty Alleviation
Government of India Ministry of Housing & Urban Poverty Alleviation
Room No.116, G-Wing, Nirman Bhawan, New Delhi
Tel: 011-23061419; Fax: 011-23061420 Government of India
E-mail: [email protected]
Website: http://mhupa.gov.in
Pradhan Mantri Awas Yojana

Housing for All (Urban)

Scheme Guidelines
2015

Ministry of Housing & Urban Poverty Alleviation

Government of India
 Preface

The Hon’ble President of India, in his address to the Joint Session of Parliament on 9th June, 2014
had announced “By the time the Nation completes 75 years of its Independence, every family will
have a pucca house with water connection, toilet facilities, 24x7 electricity supply and access.”

Hon’ble Prime Minister envisioned Housing for All by 2022 when the Nation completes 75 years of
its Independence. In order to achieve this objective, Central Government has launched a compre-
hensive mission “Housing for All by 2022”

Housing for All (HFA) mission is since launched in compliance with the above objective of the Gov-
ernment and with the approval of competent authority.

The mission seeks to address the housing requirement of urban poor including slum dwellers
through following programme verticals:

• Slum rehabilitation of Slum Dwellers with participation of private developers using land as
a resource
• Promotion of Affordable Housing for weaker section through credit linked subsidy
• Affordable Housing in Partnership with Public & Private sectors
• Subsidy for beneficiary-led individual house construction

(i)
 Table of Contents

1. Scope...................................................................................................................................................1

2. Coverage and Duration...................................................................................................................1

3. Implementation Methodology........................................................................................................2

4. “In-situ” Slum Redevelopment using land as Resource...........................................................2

5. Credit-Linked Subsidy Scheme (CLSS)........................................................................................6

6. Affordable Housing in Partnership (AHP)...................................................................................9

7. Beneficiary-led individual house construction or enhancement......................................... 10

8. Implementation Process............................................................................................................... 12

9. Technology Sub-Mission............................................................................................................... 14

10. Slums on Central Government Land........................................................................................ 15

11. Mandatory Conditions.................................................................................................................. 15

12. Capacity Building and Other Administrative Activities......................................................... 15

13. Convergence with other Ministries........................................................................................... 18

14. Mechanism for Release of Central Assistance except Credit Linked Subsidy................. 18

15. Release of Central Assistance for credit linked subsidy component

of the Mission................................................................................................................................. 20

16. Administration and Implementation Structure....................................................................... 20

17. Monitoring & Evaluation............................................................................................................... 21

18. Annexures

(ii)
 Definitions for the purpose of the Mission

Affordable Housing Project: Housing projects where 35% of the houses are constructed for EWS category
Beneficiary A beneficiary family will comprise husband, wife and unmarried children.
The beneficiary family should not own a pucca house (an all weather dwelling
unit) either in his/her name or in the name of any member of his/her family in
any part of India.
Carpet Area Area enclosed within the walls, actual area to lay the carpet. This area does not
include the thickness of the inner walls
Central Nodal Agencies Nodal Agencies identified by Ministry for the purposes of implementation of
Credit linked subsidy component of the mission
Economically Weaker Section EWS households are defined as households having an annual income up to
(EWS): Rs.3,00,000 (Rupees Three Lakhs). States/UTs shall have the flexibility to re-
define the annual income criteria as per local conditions in consultation with
the Centre.
EWS House An all weather single unit or a unit in a multi-storeyed super structure having
carpet area of upto 30 sq. m. with adequate basic civic services and infrastructure
services like toilet, water, electricity etc. States can determine the area of EWS
as per their local needs with information to Ministry
“Floor Area Ratio” (FAR)/FSI The quotient obtained by dividing the total covered area (plinth area) on all
the floors by the area of the plot:

Total covered area on all the floors x 100

FAR =
Plot area

If States/Cities have some variations in this definition, State/City definitions

will be accepted under the mission
Implementing Agencies Implementing agencies are the agencies such as Urban Local Bodies, Develop-
ment Authorities, Housing Boards etc. which are selected by State Government/
SLSMC for implementing Housing for All Mission.
Low Income Group (LIG): LIG households are defined as households having an annual income between
Rs.3,00,001 (Rupees Three Lakhs One) up to Rs.6,00,000 (Rupees Six Lakhs).
States/UTs shall have the flexibility to redefine the annual income criteria as per
local conditions in consultation with the Centre.
Primary Lending Institutions Scheduled Commercial Banks, Housing Finance Companies, Regional Rural
(PLI) Banks (RRBs), State Cooperative Banks, Urban Cooperative Banks or any other
institutions as may be identified by the Ministry
Slum A compact area of at least 300 population or about 60-70 households of poorly
built congested tenements, in unhygienic environment usually with inadequate
infrastructure and lacking in proper sanitary and drinking water facilities.
State Land Nodal Agencies Nodal Agency designated by the State Governments for implementing the
(SLNAs) Mission
Transfer of Development TDR means making available certain amount of additional built up area in lieu of
Rights (TDR) the area relinquished or surrendered by the owner of the land, so that he can
use extra built up area himself in some other land.

(iii)
 Abbreviations

A&OE Administrative and Other Expenses LIG Low Income Group

AHP Affordable Housing in Partnership MD Mission Directorate
AIP Annual Implementation Plan MoA Memorandum of Agreement
Building Materials & Technology Pro- Ministry of Housing and Urban Pov-
BMTPC MoHUPA
motion Council erty Alleviation
CDP City Development Plan MoU Memorandum of Understanding
CLS Credit linked subsidy NA Non Agricultural (NA)
CNA Central Nodal Agencies NBC National Building Code
Central Public Health and Environmen-
CPHEEO NHB National Housing Bank
tal Engineering Organisation
Central Sanctioning and Monitoring
CSMC NOC No Objection Certificate
Committee
Department of Industrial Policy and
DIPP NPV Net Present Value
Promotion
DPR Detailed Project Report PLI Primary Lending Institution
EMI Equated Monthly Instalment RWA Residents’ Welfare Association
EWS Economically Weaker Section SECC Socio Economic and Caste Census
FAR Floor Area Ratio SFCPoA Slum Free City Plan of Action
FSI Floor Space Index SLAC State Level Appraisal Committee
HFA Housing for All SLNA State level Nodal Agencies
State Level Sanctioning and Monitoring
HFAPoA Housing for All Plan of Action SLSMC
Committee
Housing and Urban Development
HUDCO TDR Transfer of Development Rights
Corporation
Information Education & Communica-
IEC TPQMA Third Party Quality Monitoring Agency
tion
IFD Integrated Finance Division ULB Urban Local Body
IIT Indian Institute of Technology UT Union Territory
IS Indian Standard

(iv)
 Ministry of Housing and Urban Poverty Alleviation

1. Scope

1.1 “Housing for All” Mission for urban area will be implemented during 2015-2022 and this
Mission will provide central assistance to implementing agencies through States and UTs for
providing houses to all eligible families/beneficiaries by 2022.

1.2 Mission will be implemented as Centrally Sponsored Scheme (CSS) except for the component
of credit linked subsidy which will be implemented as a Central Sector Scheme.

1.3 A beneficiary family will comprise husband, wife, unmarried sons and/or unmarried daughters.
The beneficiary family should not own a pucca house either in his/her name or in the name of
any member of his/her family in any part of India to be eligible to receive central assistance under
the mission.

1.4 States/UTs, at their discretion, may decide a cut-off date on which beneficiaries need to be resident
of that urban area for being eligible to take benefits under the scheme.

1.5 Mission with all its component has become effective from the date 17.06.2015 and will be
implemented upto 31.03.2022.

2. Coverage and Duration

2.1 All 4041 statutory towns as per Census 2011 with focus on 500 Class I cities would be
covered in three phases as follows:
• Phase I (April 2015 - March 2017) to cover 100 Cities selected from States/UTs as
per their willingness.
• Phase II (April 2017 - March 2019) to cover additional 200 Cities
• Phase III (April 2019 - March 2022) to cover all other remaining Cities
Ministry, however, will have flexibility regarding inclusion of additional cities in earlier phases
in case there is a resource backed demand from States/UTs.

2.2 The mission will support construction of houses upto 30 square meter carpet area with
basic civic infrastructure. States/UTs will have flexibility in terms of determining the size
of house and other facilities at the state level in consultation with the Ministry but without
any enhanced financial assistance from Centre. Slum redevelopment projects and Affordable
Housing projects in partnership should have basic civic infrastructure like water, sanitation,
sewerage, road, electricity etc. ULB should ensure that individual houses under credit linked
interest subsidy and beneficiary led construction should have provision for these basic civic
services.

2.3 The minimum size of houses constructed under the mission under each component should
conform to the standards provided in National Building Code (NBC). If available area of
land, however, does not permit building of such minimum size of houses as per NBC and
if beneficiary consent is available for reduced size of house, a suitable decision on area may
be taken by State/UTs with the approval of SLSMC. All houses built or expanded under the

1
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Mission should essentially have toilet facility.

2.4 ������������������������������������������������������������������������������������
The houses under the mission should be designed and constructed to meet the require-
ments of structural safety against earthquake, flood, cyclone, landslides etc. conforming to
the National Building Code and other relevant Bureau of Indian Standards (BIS) codes.

2.5 The houses constructed/acquired with central assistance under the mission should be in
the name of the female head of the household or in the joint name of the male head of the
household and his wife, and only in cases when there is no adult female member in the fam-
ily, the house can be in the name of male member of the household.

2.6 State/UT Government and Implementing Agencies should encourage formation of associa-
tions of beneficiaries under the scheme like RWA etc. to take care of maintenance of houses
being built under the mission.

3. Implementation Methodology

The Mission will be implemented through four verticals giving option to beneficiaries, ULBs
and State Governments. These four verticals are as below:

Affordable Subsidy for

Housing through Affordable
"In situ" Slum beneficiary-led
Credit Linked Housing in
Redevelopment individual house
Partnership
Subsidy construction

- Interest - with private - For individuals of

subvention sector or public EWS category
- Using land as a requiring individual
resource subsidy for EWS sector including
and LIG for new Parastatal house
- With private house or agencies - State to prepare
participation incremental - Central a separate project
- Extra housing Assistance per for such
FSI/TDR/FAR if - EWS: Annual EWS house in beneficiaries
required to make Household Income affordable housing
projects financially Up to Rs.3 lakh projects where - No isolated/
viable and house sizes 35% of splintered
upto 30 sq.m constructed beneficiary to be
houses are for covered.
- LIG: Annual
Household Income EWS category
Between Rs.3-6
lakhs and house
sizes upto 60 sq.m

4. “In-situ” Slum Redevelopment using land as Resource

“In-situ” slum rehabilitation using land as a resource with private participation for providing
houses to eligible slum dwellers is an important component of the “Housing for All” mission.
This approach aims to leverage the locked potential of land under slums to provide houses

2
 Ministry of Housing and Urban Poverty Alleviation

to the eligible slum dwellers bringing them into the formal urban settlement.
4.1 Slums, whether on Central Government land/State Government land/ULB land, Private
Land, should be taken up for “in-situ” redevelopment for providing houses to all eligible
slum dwellers. Slums so redeveloped should compulsorily be denotified.

4.2 Private partner for Slum Redevelopment would be selected through open bidding pro-
cess. State Governments and cities would, if required, provide additional Floor Area Ratio
(FAR)/Floor Space Index (FSI)/Transferable Development Rights (TDR) for making slum
redevelopment projects financially viable. Slum rehabilitation grant of Rs. 1 lakh per house,
on an average, would be admissible for all houses built for eligible slum dwellers in all such
projects. States/UTs will have the flexibility to deploy this central grant for other slums
being redeveloped for providing houses to eligible slum dwellers with private participation,
except slums on private land. It means that States/UTs can utilise more than Rs. 1 lakh per
house in some projects and less in other projects but within overall average of Rs. 1 lakh
per house calculated across the State/UT.

4.3 The per house upper ceiling of central assistance, if any, for such slum redevelopment proj-
ects would be decided by the Ministry.

4.4 “In-situ” redevelopment of slums on private owned lands for providing houses to eligible
slum dwellers can be incentivised by State Governments/UTs or ULBs by giving additional
FSI/FAR or TDR to land owner as per its policy. Central assistance cannot be used in such
cases.

4.5 Beneficiary contribution in slum redevelopment project, if any, shall be decided and fixed by
the State/UT Government.

4.6 Eligibility of the slum dwellers like cut off date etc. will be decided by States/UTs preferably
through legislation.

4.7 States/UTs may decide whether the houses constructed will be allotted on ownership rights
or on renewable, mortgageable and inheritable leasehold rights. States/UTs may impose
suitable restrictions on transfer of houses constructed under this component.

4.8 Approach for slum rehabilitation with private partnership is outlined as below:

4.8.1 As a first step, all tenable slums as identified in Housing for All Plan of Action
(HFAPoA) of the city should be analysed with respect to their location, number of
eligible slum dwellers in that slum (refer 4.6), area of the slum land, market potential
of the land (land value as per ready reckoner can be used), FAR/FSI available and
density norms applicable to that piece of land etc.

4.8.2 On the basis of analysis of slums, the implementing authorities should decide whether
a particular slum can be redeveloped with private participation or not using land as
a resource and to provide houses to eligible slums dwellers. For making projects

3
 Pradhan Mantri Awas Yojana : Scheme Guidelines

financially viable, in some cases, states and cities might have to provide additional
FAR/FSI or TDR and relax density and other planning norms. States/UTs may also
allow commercial usage for part of the land/FAR as mixed usage of the land.

4.8.3 State/ULB can also consider clubbing of nearby slums in clusters for in-situ redevel-
opment to make them financially and technically viable. Such cluster of slums can
be considered as a single project.

4.8.4 A viable slum rehabilitation project would have two components i.e. “slum reha-
bilitation component” which provides housing along with basic civic infrastructure
to eligible slum dwellers and a “free sale component” which will be available to
developers for selling in the market so as to cross subsidize the project.

4.8.5 While formulating the project, the project planning and implementing authorities
should also decide the area of slum land which should be given to the private de-
velopers. In some cases, the area of slum may be more than what is required for
rehabilitating all eligible slum dwellers plus free sale component for cross subsidizing
the project. In such cases, project planning authorities should give only the required
slum land to private developers and remaining slum land should be utilised for reha-
bilitating slums dwellers living in other slums or for housing for other urban poor.

4.8.6 Slum dwellers through their association or other suitable means should be consulted
while formulating redevelopment projects especially for the purpose of designing of
slum rehabilitation component.

4.8.7 The private developers who will execute the slum redevelopment project should
be selected through an open transparent bidding process. The eligibility criteria for
prospective developers can be decided by States/UTs and ULBs. The scope of work
of the prospective developers should be to conceive and to execute the project as
mandated by the implementing agency using its financial and technical resources. The
project developers would also be responsible for providing transit accommodation
to the eligible slum dwellers during the construction period.

4.8.8 All financial and non financial incentives and concessions, if any, should be integrated
in the project and declared ‘a priori’ in the bid document. These incentives and
concessions should also include contribution from beneficiaries/slum dwellers, if
any.

4.8.9 Sale of “free sale component” of project should be linked to the completion and
transfer of slum rehabilitation component to the implementing agency/state. Such
stipulation should be clearly provided in the bid document to avoid any complica-
tion.

4.8.10 Slum rehabilitation component should be handed over to implementing agency to

make allotments to eligible slum dwellers through a transparent process. While

4
 Ministry of Housing and Urban Poverty Alleviation

Strategy for Slum Redevelopment using Land as a Resource

(Ref Para 4 of the guidelines)

List All Slums

(Use Census 2011 as basis)

Use existing SFCPoA

Collect data for all slums
prepared under RAY

Analyse Slum Untenable

Data to list Slums Adopt other strategies
Tenable and available under Mission
Untenable Slums

Tenable Slums

Analysis of all tenable Slums to examine

financial and technical viability of “in-situ” Unviable
Slums Adopt other strategies to take
Slum redevelopment on PPP basis using land
care of housing needs in such
as a resource (consider additional FSI/FAR,
slums
TDR etc. & other incentives at States/ULB
level)

Viable Slums

Phasing of Slum Redevelopment over period

of mission and development of projects and
inclusion in HFA

5
 Pradhan Mantri Awas Yojana : Scheme Guidelines

making the allotment, families with physically handicapped persons and senior citizens
should be given priority for allotment on ground floor or lower floors.

4.8.11 Open bidding for the slum redevelopment project may result either into a positive
premium or negative premium. In case of positive premium, the developer who offers
the highest positive premium while satisfying all other conditions should be selected.
In case of negative premium, the implementing authority may select the bidder pro-
posing lowest negative premium. Funds required to make the project viable can be
made available either from slum rehabilitation grant of Central Government or own
fund of States and ULBs as well as positive premium received from other projects.
Any private participation, that demands substantial grants from Government, may
not be encouraged. Slums can either be taken up later for development or Kutcha/
unserviceable houses in such slums can be taken up under other components of the
mission.

4.8.12 State Project planning and implementing authorities, ULBs should have a single project
account for slum redevelopment project where positive premium, slum rehabilita-
tion grant from Central Government, funds from State Government or any other
source is to be credited and used for financing all slum redevelopment projects with
negative premium. Such accounts can be opened city-wise.

4.8.13 Slum rehabilitation projects would require various approvals from different agen-
cies as per prevailing rules and procedures in the State/UT. Project development
may also require changes in various development control rules. To facilitate such
changes and for faster formulation and approval of projects, it is suggested that a
single authority should be constituted with the responsibility to change planning and
other norms and also for according approval to projects.

5. Credit-Linked Subsidy Scheme

The Mission, in order to expand institutional credit flow to the housing needs of urban
poor will implement credit linked subsidy component as a demand side intervention. Credit
linked subsidy will be provided on home loans taken by eligible urban poor (EWS/LIG) for
acquisition, construction of house.

5.1 Beneficiaries of Economically Weaker section (EWS) and Low Income Group (LIG) seeking
housing loans from Banks, Housing Finance Companies and other such institutions would be
eligible for an interest subsidy at the rate of 6.5 % for a tenure of 15 years or during tenure
of loan whichever is lower. The Net Present Value (NPV) of the interest subsidy will be
calculated at a discount rate of 9 %.

5.2 The credit linked subsidy will be available only for loan amounts upto Rs 6 lakhs and addi-
tional loans beyond Rs. 6 lakhs, if any, will be at nonsubsidized rate. Interest subsidy will be
credited upfront to the loan account of beneficiaries through lending institutions resulting
in reduced effective housing loan and Equated Monthly Instalment (EMI).

6
 Ministry of Housing and Urban Poverty Alleviation

5.3 Credit linked subsidy would be available for housing loans availed for new construction and
addition of rooms, kitchen, toilet etc. to existing dwellings as incremental housing. The carpet
area of houses being constructed under this component of the mission should be upto 30
square metres and 60 square metres for EWS and LIG, respectively in order to avail of this
credit linked subsidy. The beneficiary, at his/her discretion, can build a house of larger area
but interest subvention would be limited to first Rs. 6 lakh only.

5.4 Housing and Urban Development Corporation (HUDCO) and National Housing Bank (NHB)
have been identified as Central Nodal Agencies (CNAs) to channelize this subsidy to the
lending institutions and for monitoring the progress of this component. Ministry may notify
other institutions as CNA in future.

5.5 Primary Lending Institutions (PLIs) can register only with one CNA by signing MoU as pro-
vided in Annexure 1.

5.6 CNAs will be responsible for ensuring proper implementation and monitoring of the scheme
and will put in place appropriate mechanisms for the purpose. CNAs will provide periodic
monitoring inputs to the Ministry of Housing and Urban Poverty Alleviation through regular
monthly and quarterly reports as per Annexure 2.

5.7 State/UTs/ULBs/PLIs shall link beneficiary identification to Aadhaar, Voter card, any other
unique identification or a certificate of house ownership from Revenue Authority of Ben-
eficiary’s native district to avoid duplication.

5.8 Preference under the Scheme, subject to beneficiaries being from EWS/LIG segments, should
be given to Manual Scavengers, Women (with overriding preference to widows), persons
belonging to Scheduled Castes/Scheduled Tribes/Other Backward Classes, Minorities, Persons
with disabilities and Transgender.

5.9 State Level Nodal Agency (SLNA) identified by State/UT for implementing the mission will
facilitate the identified eligible beneficiaries in getting approvals and documents, etc. to avail
of credit linked subsidy.

5.10 For identification as an EWS or LIG beneficiary under the scheme, an individual loan applicant
will submit self-certificate/affidavit as proof of income.

5.11 In case a borrower who has taken a housing loan and availed of interest subvention under
the scheme but later on switches to another PLI for balance transfer, such beneficiary will
not be eligible or claim the benefit of interest subvention again.

5.12 Under the Mission, beneficiaries can take advantage under one component only. Since other
three components are to be implemented by State Government through Urban Local Bodies/
Authorities etc. and this component is to be implemented by PLIs, therefore, in order that
beneficiaries do not take advantage of more than one component, PLIs should take NOCs
quarterly from State/UT Governments or designated agency of State/UT Governments for
the list of beneficiaries being given benefits under credit linked subsidy. For enabling this
process, the beneficiaries should be linked to his/her Aadhaar/Voter ID Card/Any other
unique identification Number or a certificate of house ownership from Revenue Authority
of Beneficiary’s native district and State/UT Government or its designated agency should
furnish the NOC within 15 days of receipt of such request.

7
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Steps in Credit Linked Subsidy Scheme (Ref Para 5 of guidelines)

Self-certificate/affidavit
Individual Home Loan as proof of income
Application (Ref para 5.10)

Directly or through the ULB or the

local agencies identified by the
State/ULBs

Bank

Quarterly information of
Beneficiary with Aadhaar/Voter
ID/Any unique identity No. or a
Decision on Loan
certificate of house ownership
(EWS - carpet area
from Revenue Authority of
30sqm/LIG EWS -
Beneficiary’s native district
carpet area 60sqm)
Number to SLNA or Dedicated
(Ref para 5.3, 5.8)
agency for validation

- Sanction of Credit Linked Subsidy

@6.5% for loan upto Rs 6 lakh,
loan beyond Rs 6 lakh at normal Validation of Beneficiary
interest rate
- Interest subsidy calculated on
NPV basis at a discount rate of 9%
(Ref para 5.1, 5.2)

Funds from GoI to CNA.

- advance subsidy will be released to each
PLIs Submitting claim to CNA CNA at the start of the scheme
- Subsequent amounts after 70 % utilization
Ref para 15.1, 15.3)

CNA will release the subsidy amount to PLIs

directly based on the claims submitted on the
Approval of Claims by CNA total loans disbursed
Ref para 15.2, 15.5)

Credit Linked Subsidy deposited by

PLI in Loan account of Beneficiary

8
 Ministry of Housing and Urban Poverty Alleviation

6. Affordable Housing in Partnership (AHP)

The third component of the mission is affordable housing in partnership. This is a supply
side intervention. The Mission will provide financial assistance to EWS houses being built
with different partnerships by States/UTs/Cities.

6.1 To increase availability of houses for EWS category at an affordable rate, States/UTs, either
through its agencies or in partnership with private sector including industries, can plan af-
fordable housing projects. Central Assistance at the rate of Rs. 1.5 Lakh per EWS house
would be available for all EWS houses in such projects.

6.2 The States/UTs would decide on an upper ceiling on the sale price of EWS houses in rupees
per square meter of carpet area in such projects with an objective to make them affordable
and accessible to the intended beneficiaries. For that purpose, State and cities may extend
other concessions such as their State subsidy, land at affordable cost, stamp duty exemption
etc.

6.3 The sale prices may be fixed either on the project basis or city basis using following prin-
ciples;

Project Implemented by

States/UTs/ULBs/Parastatals States/UTs/ULBs/Parastatals with Private Sector

with no private sector

Allotment of houses by

Private partner as
States/UTs/ULBs/Parastatals authorised to sell EWS
houses to eligible
beneficiaries

Sale Price to be fixed by States on the basis of

Through open transparent

No Profit No Loss process factoring in incentives
provided by Centre/State/ULB

9
 Pradhan Mantri Awas Yojana : Scheme Guidelines

6.4 An affordable housing project can be a mix of houses for different categories but it will be
eligible for central assistance, if at least 35% of the houses in the project are for EWS category
and a single project has at least 250 houses. CSMC, however, can reduce the requirement
of minimum number of houses in one project on the request of State Government.

6.5 Allotment of houses to identified eligible beneficiaries in AHP projects should be made fol-
lowing a transparent procedure as approved by SLSMC and beneficiaries selected should be
part of HFAPoA. Preference in allotment may be given to physically handicapped persons,
senior citizens, Scheduled Castes, Scheduled Tribes, Other Backward Classes, minority,
single women, transgender and other weaker and vulnerable sections of the society. While
making the allotment, the families with differently-abled persons and senior citizens may be
allotted house preferably on the ground floor or lower floors.

6.6 Detailed Project Report of such projects prepared by concerned implementing agencies
should be approved by SLSMC.

7. Beneficiary-led individual house construction or enhancement

The fourth component of the mission is assistance to individual eligible families belonging to
EWS categories to either construct new houses or enhance existing houses on their own
to cover the beneficiaries who are not able to take advantage of other components of the
mission. Such families may avail of central assistance of Rs. 1.5 lakh for construction of new
houses under the mission. Such beneficiaries should be part of HFAPoA.

7.1 A beneficiary desirous of availing this assistance shall approach the ULBs with adequate docu-
mentation regarding availability of land owned by them. Such beneficiaries may be residing
either in slums or outside the slums. Beneficiaries in slums which are not being redeveloped
can be covered under this component if beneficiaries have a Kutcha house.

7.2 The Urban Local Bodies shall validate the information given by the beneficiary and building
plan for the house submitted by beneficiary so that ownership of land and other details of
beneficiary like economic status and eligibility can be ascertained. In addition, the condition
of the houses e.g. Kutcha, semi-kutcha etc. of the prospective beneficiary should be checked
with SECC data to ensure beneficiary’s consequent eligibility for construction of new hous-
ing. SECC data regarding number of rooms, details of family members etc. should also be
checked to ensure beneficiary’s eligibility for enhancement.

7.3 On the basis of these applications, ULBs will prepare an integrated city wide housing project
for such individual beneficiaries in accordance with the City Development Plan (CDP) or
other such plans of the city to ensure construction of proposed houses are as per planning
norms of the city and scheme is implemented in an integrated manner. Individual applicants
for assistance shall not be considered.

7.4 Such Projects would be approved by States in SLSMC.

7.5 While approving project for individual house construction, Urban Local Bodies and State/
UT should ensure that required finance for constructing the planned house is available to
the beneficiary from different sources including his own contribution, GoI assistance, State

10
 Ministry of Housing and Urban Poverty Alleviation

Government assistance etc. In no case, GoI assistance will be released for house where
balance cost of construction is not tied up, as otherwise release of GoI assistance may result
into half constructed houses.

7.6 State/UT or cities may also contribute financially for such individual house construction.
Central assistance will be released to the bank accounts of beneficiaries identified in projects
through States/UTs as per recommendations of State/UT.

7.7 Though the funds from Central Government to State Governments would be released in
lump-sum including assistance for this component, State Government should release financial
assistance to the beneficiaries in 3-4 instalments depending on progress of construction of
the house. Beneficiary may start the construction using his own funds or any other fund and
GoI assistance will be released in proportion to the construction by individual beneficiary.
The last instalment of Rs. 30,000/- of GoI assistance should be released only after comple-
tion of the house.

7.8 The progress of such individual houses should be tracked through geo-tagged photographs
so that each house can be monitored effectively. States will be required to develop a system
for tracking progress of such houses through geo-tagged photographs. Flow chart show-
ing steps in beneficiary-led construction or enhancement component of the mission is as
under:

Beneficiary

Belonging to Slums Non-slum

not being taken up
for redevelopment

Proposal to ULB for construction of new house or

enhancement
[Para 7.1 of guidelines]

Verification of the Beneficiary and (land ownership,

proposal by ULB or Implementing agency building plan etc.)
[Para 7.2 of guidelines]

Preparation of project by ULB/Implementing agency

based on applications from beneficiaries
(Ref para 7.3, 7.5, 7.6)

Submission of Project

Approval by SLSMC Project information to

CSMC

Release of Central subsidy

through State Government

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 Pradhan Mantri Awas Yojana : Scheme Guidelines

8. Implementation Process

8.1 As a first step, States/UTs will sign a Memorandum of Agreement (MoA) to participate in
the mission by agreeing to mandatory conditions and other modalities. A copy of the MoA
to be signed between State/UT and Centre is placed at Annexure 3.

8.2 States/UTs will send proposals to the Ministry for inclusion of cities in the mission along with
broad assessment of housing and resources requirement. Ministry will approve inclusion of
these cities considering availability of resources. The credit linked subsidy component of
the mission will, however, be implemented in all statutory cities/towns across the country
right from the launch of the mission.

8.3 State/Cities will undertake a demand survey through suitable means for assessing the actual
demand of housing. While validating demand survey, States/Cities should consider possible
temporary migration from rural areas to the city just to take advantage of housing scheme
and exclude such migrants from list of beneficiaries. On the basis of demand survey and other
available data, cities will prepare Housing for All Plan of Action (HFAPoA). HFAPoA should
contain the demand of housing by eligible beneficiaries in the city along with the interven-
tions selected out of four verticals mentioned in para 3 of the guidelines. The information
regarding beneficiaries should be collected by States/UTs in suitable formats but must contain
the information as in Annexure 4. While preparing HFAPoA, State/UT and Implementing
Agencies should also consider the affordable housing stock already available in the city as
Census data suggests that large number of houses are vacant.

8.4 Jan Dhan Yojana/other bank account number and Aadhaar number/Voter ID card/any other
unique identification details of intended beneficiaries or a certificate of house ownership
from Revenue Authority of beneficiary’s native district will be integrated in the data base
of HFAPoA for avoiding duplication of benefit to one individual family. Beneficiaries will be
validated by States/UTs and ULBs thereby ensuring their eligibility at the time of preparation
of the projects and approval of projects.

8.5 On the basis of HFAPoA, States/Cities will subsequently prepare the Annual Implementation
Plans (AIPs) dividing the task upto 2022 in view of the availability of resources and priority.
For larger cities, HFAPoA and AIPs can be prepared at sub-city (ward/zone etc.) level with
the approval of concerned State/UT Government.

8.6 The result of demand survey, draft HFAPoA and draft AIP should be discussed with the lo-
cal representatives including MLAs and MPs of that area so that their views are adequately
factored in while finalising the plans and beneficiary list.

8.7 Cities which have already prepared Slum Free City Plan of Action (SFCPoA) or any other
housing plan with data on housing, should utilise the existing plan and data for preparing
“Housing for All Plan of Action” (HFAPoA). Houses constructed under various schemes
should be accounted for while preparing HFAPoA & AIP. Flow Chart for preparing HFAPoA
is placed below. The formats for the HFAPoA and AIP are kept at Annexure 5 & 6 respec-
tively.

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 Ministry of Housing and Urban Poverty Alleviation

HFAPoA

Slum Dwellers Other Urban Poor

Demand Assessment, Validation of

List All Slums beneficiary and Categorization of Intended
(Use Census 2011 as basis)
Beneficiary amongst available option

OR
Collect data for all Use existing SFCPoA
slums prepared under RAY Credit Linked
Subsidy for
new houses Affordable Individual
or extension/ Housing in house
expansion, Partnership construction
repair

Analysis of
Slum Data to list Untenable Slums
Tenable and
Untenable
Slums
Adopt other Strategies
available under Preparation of HFAPoA
Mission
Tenable Slums

Revision in HFAPoA on the basis of

Implementation of AIP
Prepare AIP containing
all components except
Analysis of all tenable
Credit Linked Subsidy
Slums to examine
financial and technical
viability of “in-situ” Slum
redevelopment on PPP
Unviable Slum
basis using land as a
resource viability of Slum
on PPP basis using land
as a resource (consider
additional FSI/FAR, TDR Implementation of AIP
etc. & other incentives at
States/ULB level)

Adopt other
strategies to take
care of housing
need of Slum
Dweller

Viable Slum

Phasing of Slum Redevelopment

over period of mission and
development of projects and
inclusion in HFA

13
 Pradhan Mantri Awas Yojana : Scheme Guidelines

8.8 The HFAPoA and AIPs should be submitted to the Ministry after approval of State level
Sanctioning and Monitoring Committee for assessment of the overall plan and required
central financial assistance. In view of availability of finance and upon assessment of plan,
CSMC may issue directions for change in HFAPoA and AIPs.

8.9 HFAPoA should be reviewed on a yearly basis to make changes in view of implementation
of Annual Implementation Plan (AIP) in the preceding years.

8.10 Based on HFAPoA and availability of resources, each city will prepare Detailed Project Re-
port (DPRs) under each component of the Mission. All DPRs should be approved by State
Level Sanctioning and Monitoring Committee.

8.11 Urban Local Bodies should take into account the provisions of the City Development Plan,
City Sanitation Plan etc. in preparing HFAPoA for achieving synergy with other ongoing
programmes of both Central and State Governments.

8.12 A Beneficiary will be eligible for availing only a single benefit under any of the existing op-
tions i.e. slum redevelopment with private partner, credit link subsidy, direct subsidy to
individual beneficiary and affordable housing in partnership. It will be the responsibility of
State/UT Government to ensure that the beneficiary is not given benefit under more than
one component of the Mission and all assisted families are part of HFAPoA.

9. Technology Sub-Mission

9.1 A Technology Sub-mission under the Mission would be set up to facilitate adoption of modern,
innovative and green technologies and building material for faster and quality construction
of houses. Technology Sub-Mission will also facilitate preparation and adoption of layout
designs and building plans suitable for various geo-climatic zones. It will also assist States/
Cities in deploying disaster resistant and environment friendly technologies.

9.2 The Sub-mission will coordinate with various regulatory and administrative bodies for main-
streaming and up scaling the deployment of modern construction technologies and material
in place of conventional construction. Technology sub-mission will also coordinate with
other agencies working in green and energy efficient technologies, climate changes etc.

9.3 The Sub-Mission will work on following aspects: i) Design & Planning ii) Innovative technolo-
gies & materials iii) Green buildings using natural resources and iv) Earthquake and other
disaster resistant technologies and designs. Simple concept of designs ensuring adequate
sunlight and air should be adopted.

9.4 Centre and State would also partner with willing IITs, NITs and Planning & Architecture
institutes for developing technical solutions, capacity building and handholding of States and
Cities.

9.5 State or region specific needs of technologies and designs would also be supported under
this Sub-Mission.

14
 Ministry of Housing and Urban Poverty Alleviation

10. Slums on Central Government Land

10.1 Central government land owning agencies should also undertake “in-situ” slum redevelop-
ment on their lands occupied by slums by using it as a resource for providing houses to slum
dwellers. In case of relocation, a land should either be provided by the agency itself or the
agency may collaborate with the States/UTs for obtaining land from State/UT/City. Central
Government agencies should not charge land costs for the land used for the purpose of
housing the eligible slum dwellers.

10.2 Central govt. agencies undertaking slum development in partnership with private developers
would be eligible for slum rehabilitation grant of Rs. 1 lakh per house on an average for all
slums on their land being taken up for redevelopment with private partners.

11. Mandatory Conditions

Availability of urban land is the biggest constraint in providing housing to all including weaker sec-
tions. Therefore, to ease administrative and regulatory bottlenecks, a set of Mandatory Conditions
has been included in the Mission to facilitate growth of housing sector including affordable housing.
For participating in the mission and to avail of financial assistance from Central Government, States/
UTs should agree to fulfil following Mandatory Conditions:-

11.1 State/UTs to make suitable changes in the procedure and rules for obviating the need for separate
Non Agricultural (NA) Permission if land already falls in the residential zone earmarked in Master
Plan of city or area.

11.2 States/UTs shall prepare/amend their Master Plans earmarking land for Affordable Housing.

11.3 A System should be put in place to ensure single-window, time bound clearance for layout approval
and building permissions at ULB level.

11.4 States/UTs shall adopt the approach of deemed building permission and layout approval on the
basis of pre-approved lay outs and building plans for EWS/LIG housing or exempt approval for
houses below certain built up area or plot area.

11.5 States/UTs would either legislate or amend existing rental laws on the lines of model Tenancy Act
being prepared by Ministry.

11.6 States/UTs shall provide additional FAR/FSI/TDR and relaxed density norms for slum redevelop-
ment and low cost housing, if required.

12. Capacity Building and Other Administrative Activities

5% of the allocation under the scheme is earmarked for capacity building, Information Education &
Communication (IEC) and Administrative & Other Expenses (A&OE). Allocation available under
this head will be utilised for carrying out various activities required for effective implementation
of mission. Illustrative activities under this component are as below :

15
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Capacity Building

12.1 Capacity building activities like trainings, workshops, study/exposure visits, etc. would be undertaken
for enhancing the capacities of various stakeholders in implementation of the mission. Research
studies, documentations and dissemination of best practices, preparation of other scheme related
materials would also be undertaken for capacity building.

12.2 Financial and other norms for various activities under capacity building will be decided by CSMC.
Till the time CSMC decides these norms, norms finalised under earlier schemes such as RAY
would be used.

12.3 Mission will empanel Resource Centres for providing training and to undertake other activities.
State may also empanel Resource Centres to develop training programmes customised to its need
with the prior approval of CSMC.

12.4 All capacity building activities approved by CSMC would be fully funded by Government of India
as per the norms decided by CSMC.

12.5 Under IEC, Mission will undertake activities for developing and dissemination of advocacy material
aimed at various stakeholders with the approval of competent authority. IEC activities will also
be fully funded by Ministry.

12.6 Social Audit : Mission, at its discretion, will also assist State/UT Governments in undertaking social
audit of the projects being implemented under the mission. Such social audit would be carried out
by State/UT Government and ULBs through credible institutions including technical institutions
(IITs, NITs etc.) and architectural and design institutes and through students of such institutions.
Mission will provide 100% financial assistance for social audit with the approval of CSMC.

12.7 Administrative and other expenses of Mission would also be borne out of these earmarked funds.
The Ministry will create a Technical Cell, Project Management Cell etc. as required for the Mis-
sion for effective implementation of the scheme including hiring of the services of manpower on
contract basis for short and longer duration.

12.8 Ministry will also require appraising agencies like BMTPC and HUDCO to assist the Ministry
in appraising HFAPoA and Annual Implementation Plans (AIPs). Services of these appraisal
agencies will also be required for checking projects randomly. The expenditure on such
activities will also be met from these funds. CSMC will decide the financial norms for such
activities.

12.9 A technology sub-mission is being formed under the mission. The activities of sub-mission
will be financed under capacity building allocation of the mission.

12.10 Third Party Quality Monitoring Agencies (TPQMA): It is envisaged that the States/UTs
would engage TPQMA to ensure quality of construction under various components of the Mis-
sion. State/UTs should draw up their quality monitoring and assurance plans involving third party

16
 Ministry of Housing and Urban Poverty Alleviation

agencies. Such plan will include the visits by third party agencies to the project site and to advise
State and Urban Local Bodies on quality related issues. On the basis of quality assurance report
by such agencies and also reports of their own technical staff, States and ULBs should take both
preventive and curative measures to ensure that standard quality houses and infrastructure are
constructed under the mission. Ministry will provide assistance to implement third party quality
monitoring mechanism by sharing the cost on 75:25 basis; and in case of NE and special category
states on 90:10 basis. Ministry will share expenses for at most three visits by TPQMA to each
project. Annual Quality Monitoring Plans should be submitted to Mission for the approval of CSMC
after taking approval of State Level Monitoring Committee.

12.11 Preparation of HFAPoA and Technical Cells in State & Cities

Preparation of HFAPoA requires number of activities by States and cities. Mission will assist States/
cities in carrying out these activities for preparation of HFAPoA under capacity building and A&OE
funds. Many cities have already been given assistance under RAY for preparation of Slum Free City
Plan of Action (SFCPoA). States and cities should utilise that amount for preparation of HFAPoA
and claim next instalment when 70% of the released funds have been utilised.

12.12 The activities required for preparation of HFAPoA will be funded by Ministry in the ratio of 75:25
and in case of North Eastern and special category States in the ratio of 90:10. The unit cost/
financial norms for different activities will be determined by CSMC and till then the existing norms
under RAY should be used.

12.13 For implementing “Housing for All” states and cities will require different competencies like plan-
ning, engineering, social mobilisation, financial planning etc. Ministry will provide assistance to the
states and city government for enhancing capacity of their employees/officers in these operational
areas. Ministry will also assist city and state government in constitution of Technical and Project
Management Cell at state and city level. A State Level Technical Cell (SLTC) with 5-10 profes-
sionals will be supported with the approval of CSMC. CSMC can increase the size of such cell on
the requirement of State/UT.

12.14 City Level Technical Cell (CLTC) with 2-4 professionals depending on the size of the city and
quantum of work will also be supported by the mission with the approval of CSMC. In case of
big cities like metropolitan cities the number of professionals in CLTC can be more than 4 with
the approval of CSMC.

12.15 The Ministry support for CLTC and SLTC will be in the ratio of 75:25 and in case of North Eastern
and special categories States it will be in the ratio of 90:10. The financial norms for such Cells
will be prescribed by CSMC and till the time CSMC prescribes these norms, the norms already
approved under RAY will be applicable.

12.16 Any other activities which is required for building the capacity for implementing the Mission or
in general for augmenting the capacity of Centre, States and ULBs in this sector can be taken up
with the approval of CSMC.

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 Pradhan Mantri Awas Yojana : Scheme Guidelines

13. Convergence with other Ministries

13.1 Industries, through Department of Industrial Policy and Promotion (DIPP), would be requested
to plan and make provision for housing facilities for all its employees whether contractual
or permanent. Housing for its employee should be an integral part of industrial set up by
Industry and planning by State Governments.

13.2 Ministry of Railways and other land owning Central Government agencies would be requested
to undertake “in-situ” redevelopment of slums existing on its land providing houses to eligible
slum dwellers.

13.3 Ministry of Urban Development would be requested to converge civic amenities and in-
frastructure development in outer areas of the cities under its proposed National Urban
Rejuvenation Mission (NURM) called Atal Mission for Rejuvenation and Urban Transfor-
mation of 500 cities (AMRUT) so that more land with civic facilities can become available
and part of which can be used by cities for housing for weaker section. Ministry of Urban
Development would also be requested to make provisions for housing for weaker section
in its Smart Cities right from beginning.

13.4 The Construction Workers Welfare Fund is set up by States/UTs under the central law of
Building and Other Construction Workers (Regulation of Employment and Conditions of
Service) Act, 1996. States/UTs collect cess on construction projects and transfer the amount
to the Welfare Fund for Construction Workers. Ministry of Labour will be requested to ask
States/UTs for creating rental housing stocks to workers as welfare measure.

13.5 Government of India has been implementing various schemes such as National Urban
Livelihood Mission, National Urban Health Mission, Sarv Siksha Abhiyan, Solar Mission etc.
which target the urban poor. States/UTs are requested to ensure convergence with relevant
schemes in housing projects to be undertaken under this mission.

14. Mechanism for Release of Central Assistance except Credit Linked Subsidy

14.1 Indicative State/UT wise allocation will be made based on urban population and estimated slum
population or other criteria as may be decided by MoHUPA. The allocation will be made separately
for each component. Ministry can change the inter-se allocation between different components
with the approval of competent authority.

14.2 Central Assistance under different components will be released to the States/UTs after the ap-
proval of CSMC and with concurrence of the Integrated Financial Division (IFD) of the Ministry.
Central share would be released in 3 instalments of 40%, 40% and 20% each.

14.3 Ministry, with the approval of CSMC, will release initial money for taking up preparatory
activities for formulating HFAPoA after taking into consideration the number of cities covered
under mission. States/UTs will submit HFAPoA for the selected cities as soon as possible,

18
 Ministry of Housing and Urban Poverty Alleviation

preferably within 6 months of selection of city. On the basis of HFAPoA, the requirements
of financial assistance from GoI would be projected.

14.4 States/UTs will submit Annual Implementation Plan (AIP) each year for the next year in prescribed
format given at Annexure 6 so that Ministry can assess budgetary requirement. AIP should be
submitted each year.

14.5 After approval of Annual Implementation Plan (AIP) the State/UT will be required to submit
details of the projects approved by SLSMC under different components of the mission as in
prescribed format kept at Annexure 7. CSMC would consider the project-wise information
for releasing first instalment of 40% of admissible Central share for each component. For
considering the release of first instalment, CSMC may scrutinize the selected DPRs with the
help of technical/other institutions. For the year 2015-16 i.e. for the first year of Mission,
AIP will not be necessary. State/UT may seek Central assistance on the basis of projects
approved by SLSMC as per scheme guidelines by quarterly sending the details of approved
projects in the prescribed format given at Annexure 7.

14.6 Second instalment of 40% would be released based on 70% utilization of earlier central release
along with State releases, and commensurate physical progress. Before releasing 2nd instalment
CSMC may check the quality of the houses being constructed on random basis or houses of spe-
cific project through technical institutions along with reports of Third Party Quality Monitoring
Agencies selected by States for quality monitoring purpose. The format of utilization certificate
to be submitted is given at Annexure 8.

14.7 States/UTs will further release the central grant to cities and/or other implementing agencies. In
order to provide flexibility, States/UTs are allowed to release funds on the basis of actual progress
of the projects, implying that for a project being implemented faster, state/UTs can release more
funds.

14.8 The final instalment of 20% of central assistance will be released subject to 70% utilization of earlier
central releases and completion of projects including construction of houses and infrastructure,
as may be applicable, in each project. The final instalment of 20% of central assistance would
also be contingent of achieving mandatory reforms. States/UTs will be required to submit project
completion reports for all approved projects as per Annexure 9.

14.9 Under the component of Subsidy for beneficiary-led individual house construction or enhance-
ment/ central assistance transferred to States/UTs, the same shall be transferred electronically to
the beneficiary bank accounts. States/UTs shall prepare an electronic list of eligible beneficiaries
with Aadhaar/Voter ID Card/any other unique identification number or a certificate of house
ownership from Revenue Authority of beneficiary’s native district and valid Bank account numbers
before sanctioning projects for individual construction.

14.10 All eligible beneficiaries under all component of scheme should have an Aadhaar/Voter ID/
any other unique identification document or a certificate of house ownership from Revenue

19
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Authority of beneficiary’s native district which should be integrated with the details of
beneficiary. In case, any eligible beneficiary does not have an Aadhaar card, State and Cities
should ensure that Aadhaar enrolment of such beneficiaries is done on priority.

14.11 Funds released to the city or any other implementing agency by State should be kept in a
separate account opened for this Mission. Any interest accrued in this account is to be used
for the mission purpose only.

15. Release of Central Assistance for credit linked subsidy component of the Mission

15.1 An advance subsidy will be released to each CNA at the start of the scheme. Subsequent
amounts of credit linked subsidy will be released to the CNAs after 70 % utilization of earlier
amounts, on quarterly basis, and based on claims raised by CNAs, as per prescribed format
Annexure 10.

15.2 Based on the loan disbursed by a PLI to EWS and LIG beneficiaries, the CNA will release the
subsidy amount to PLIs directly based on the claims submitted on the total loans disbursed.
Subsidy will be released to the PLI by the CNA in maximum of four instalments.

15.3 0.1% of total fund disbursement by the CNAs to the PLIs will be paid to the CNAs for their
administrative expenses.

15.4 Subsidy will be credited by the PLI to the borrower’s account upfront by deducting it from
the principal loan amount of the borrower. The borrower will pay EMI as per lending rates
on the remainder of the principal loan amount.

15.5 In lieu of the processing fee for housing loan for the borrower under the scheme, PLIs will
be given a lump sum amount of Rs. 1000 per sanctioned application. PLIs will not take any
processing charge from the beneficiary.

15.6 Beneficiary can apply for a housing loan directly or through the ULB or the local agencies
identified by the State/ULBs for facilitating the applications from intended beneficiaries. In
order to incentivize the designated staff of ULBs or NGOs a sum of Rs.250 per sanctioned
application would be paid out of CLS Scheme funds payable through State Governments.

16. Administration and Implementation Structure

The Programme will have a three-tier implementation structure.

16.1 An inter-ministerial committee viz. Central Sanctioning and Monitoring Committee (CSMC)
is constituted under the Chairpersonship of Secretary (HUPA) for implementation of the
Mission, approvals there under and monitoring. The constitution and indicative functions of
CSMC is at Annexure 11.

20
 Ministry of Housing and Urban Poverty Alleviation

16.2 A Committee of Secretary (HUPA) and Secretary (DFS) in Government of India is also con-
stituted for monitoring the credit linked subsidy component of the Mission, giving targets to
PLIs etc. The Committee can co-opt other members as is felt necessary by it.

16.3 A Mission Directorate (MD) is also formed under the Ministry to implement the Mission. It
is headed by Joint Secretary (Mission).

16.4 States/UTs are required to constitute an inter-departmental State Level Sanctioning &
Monitoring Committee (SLSMC) for approval of Action Plans and projects under various
components of the Mission. The Committee should be headed by Chief Secretary and
suggested composition of the Committee along with its indicative functions is at Annexure
12.

16.5 Each State/UT will identify a State Level Nodal Agency (SLNA) under the Mission wherein a
State Level Mission Directorate will be set up for coordination of the scheme and reform-
related activities.

16.6 State Level Appraisal Committee (SLAC) may be constituted by the State /UT for techno-
economic appraisal of DPRs submitted by ULBs/Implementing Agencies. SLAC will submit
their appraisal reports with their comments and recommendations to the SLNA for taking
approval of SLSMC.

16.7 State may nominate a separate State Level Nodal Agency (SLNA) under the credit linked
subsidy component of the Mission to identify, motivate and organize beneficiaries to seek
housing loans.

16.8 A city level Mission for selected cities should be set up under the chairpersonship of the
Mayor or Chairman of the ULB as the case may be.

16.9 Suitable grievance redressal system should be set up at both State and City level to address
the grievances in implementing the mission from various stakeholders.

17. Monitoring & Evaluation

Mission will be monitored at all three levels: City, State and Central Government. CSMC
will monitor formulation of HFAPoA, Annual Implementation Plans (AIPs) and project imple-
mentation. Suitable monitoring mechanisms will be developed by the Mission. States and
cities will also be required to develop monitoring mechanism for monitoring the progress
of mission and its different components.

****

21
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Annexure 1
(Para 5.5 of the Guidelines)

Memorandum of Understanding (MoU)

This Memorandum of Understanding (MoU) has been executed on the ___________ (Date in
words) at New Delhi, between National Housing Bank (NHB) / Housing and Urban Development
Corporation Ltd (HUDCO), ............................. IHC Complex, Lodhi Road, New Delhi – 110003,
through its ........................... (Name & designation) (hereinafter called the First Party, which shall un-
less repugnant to the context shall mean and include their successors, assignees and administrators)
ON THE FIRST PART

AND

M/S ....................................... (Bank/HFC/RRB/State Co-operative Bank/Primary Lending Institution/

lender) .............................(address) through its ................. (name & designation) (hereinafter called the
Second Party/Lender”, which shall unless repugnant to the context shall mean and include their suc-
cessors, assignees and administrators) ON THE SECOND PART

WHEREAS, the Ministry of Housing and Urban Poverty Alleviation (Mo/HUPA), Government of
India is implementing the Interest Subvention Scheme known as “Credit Linked Subsidy Scheme”
(CLSS) (hereinafter called the ”Scheme”) as part of the “Housing for All by 2022” (HFA) mission
to address the housing needs of the Economically Weaker Sections (EWS) / Low Income Groups
(LIG) segments in urban areas.

WHEREAS, the Scheme envisages the provision of interest subsidy to EWS and LIG segments to
enable such borrower/beneficiary to buy/construct or extend houses.

WHEREAS, Mo/HUPA, Government of India has designated the First Party as the Central Nodal
Agency (CNA) to implement the scheme. The interest subsidy will be released by the CNA to the
Second Party in respect of housing loan sanctioned by Second Party to various borrowers/benefi-
ciaries as detailed in this MoU.

WHEREAS, the lender/Second Party is, inter-alia, in the business of lending housing loans to individual
beneficiaries on deferred payment basis and is interested in providing the benefit of the Scheme to
eligible borrowers/beneficiaries.

NOW, THEREFORE, IN CONSIDERATION OF THE PROMISES AND MUTUAL COVENANTS,

BOTH THE PARTIES HERETO AGREE AS FOLLOWS:

A. The Mo/HUPA, Government of India has recently issued the guidelines for “Credit Linked Sub-
sidy Scheme” (CLSS) as part of the “Housing for All by 2022” mission guidelines (hereinafter
called the guidelines) which is part of this MoU. The broad features of the scheme, terms for
loan and subsidy reimbursement, selection of beneficiaries, roles and responsibilities of various
agencies under the scheme and its monitoring etc. will be as per the guidelines.

22
 Ministry of Housing and Urban Poverty Alleviation

B. The Mo/HUPA, Government of India shall be at full liberty to amend/modify/terminate the

Scheme and the Scheme guidelines. However, in respect of loans already sanctioned by the
lender/second party and part-disbursed, based on the availability of the eligible subsidy amount,
the amount shall be made available out of the budgetary allocation in the event of the amend-
ment /modification / termination of the scheme.

C. That the First Party is the CNA appointed by Mo/HUPA, Government of India for grant of
Interest Subsidy to the Second Party out of the subsidy released by Government of India to
the First Party under the scheme.

D. Responsibilities and Obligations of First Party

1. The First Party shall be responsible for release of interest subsidy to the Second Party out
of the funds released by Mo/HUPA, Government of India, as per the Scheme. On receipt
of information regarding the loan disbursed by the Second Party to eligible borrower/
beneficiary, the First Party shall release the subsidy amount to the Second Party directly.

2. The interest subvention will be at the rate of 6.5 (six and a half) percent on the principal
amount of the loan for, both, EWS and LIG segment, admissible for a maximum loan amount
of first Rs.6.00 (six) lakhs, irrespective of the total loan size, over 15 (fifteen) years or full
period of the loan, whichever is less. If the loan size, however, is less than Rs 6.00 (six)
lakhs, the subsidy will be limited to the loan amount. The Net Present Value (NPV) of
subsidy will be calculated based on a notional discount rate of 9 (nine) percent and upfront
subsidy shall be given to the lenders/Second Party. The NPV subsidy given to the lender
will be deducted from the principal loan amount of the borrower/beneficiary, who will
then have to pay interest to the Second Party at an agreed document rate on effectively
reduced housing loan for the whole duration of the loan.

E. Responsibilities and Obligations of Second Party:

1. The Lender/Second Party hereby undertakes to pass-on the entire benefit of the Scheme
to its borrowers/ beneficiaries.
2. The Lender/Second Party hereby undertakes to implement the Scheme as per its terms
& conditions.
3. The Lender/Second Party hereby undertakes that it will follow the best practices of lending
to implement the Scheme and follow the scheme guidelines and Regulations of Reserve
Bank of India (RBI) / National Housing Bank (NHB).
4. The lender/second party will exercise due diligence in risk assessment and will adopt dili-
gent appraisal and sanction procedures, including assessment of the loan eligibility and the
repayment capacity of the borrower/beneficiary.
5. The lender/second party will adhere to all extant guidelines issued by the Mo/HUPA, Gov-
ernment of India under the “Housing for All by 2022” mission including the modifications/
amendments to such guidelines from time to time.
6. The Lender/Second Party will provide utilization/end use certificate to the First Party on
a quarterly basis and also the certificate in relation to the physical progress of the con-
struction leading up to the completion of the housing unit. The lender/Second Party shall
submit a consolidated utilization certificate on completion of the housing unit within one
year period from the start of construction. In case of default in not providing utilization/

23
 Pradhan Mantri Awas Yojana : Scheme Guidelines

end-use certificate the lender/Second Party shall refund the amount of subsidy to the First
Party. Further, any unutilized amount of subsidy shall be immediately returned by Second
Party to First Party.
7. The lender/second party will monitor the construction of the dwelling units financed un-
der the scheme, including the approvals for the building design, infrastructure facilities etc.
as also the quality of the construction and verify through site visits etc. the expenditure
incurred upto different stages of construction.
8. In the event of default in repayment of the loan by the borrower/beneficiary to the Sec-
ond Party and the loan becoming Non-performing assets (NPA), the lender/second party
will proceed for recovery of the dues through such measures as considered appropriate,
including foreclosure of the property. In all such cases, the amount of the recoveries will
be first charged to the subsidy amount (balance period of the loan) and will be paid by the
lender/second party to the nodal agency for onward payments/adjustment as decided by
the Mo/HUPA, Government of India from time to time.
9. The lender/Second Party will provide each borrower/beneficiary a statement, which will
make him/her understand the amount given as subsidy, how the subsidy has been adjusted
and the impact of the subsidy on his/her equated monthly installments (EMI).
10. The lender/second party shall provide all other information, statements and particulars as
may be required from time to time by the first party or by the Mo/HUPA, Government
of India under the Scheme.
11. The lender/Second Party will clearly explain to the loanees/ borrowers/ beneficiaries the
consequences of availing loan on fixed/floating rates of interest.

F. Disputes and Jurisdiction

All disputes and differences between First Party and Second Party arising part of these presents shall
as far as possible be resolved through negotiations. However, if any differences/disputes still persist
the same shall be referred to the sole arbitrator appointed by the CMD, NHB/HUDCO under the
provisions of the Arbitration and Conciliations Act, 1996. The decision of the sole arbitrator shall
be final and binding on the parties. Arbitration proceedings shall be held at Delhi.

Signed at Delhi on this date as mentioned above.

For and on behalf of For and on behalf of

National Housing Bank/ Bank/HFCs/lenders/PLI

Housing & Urban Development
Corporation Ltd.
(First Party ) (Second Party)

24
 Ministry of Housing and Urban Poverty Alleviation

Annexure 2
(Para 5.6 of the Guidelines)

MASTER DATA TO BE COLLECTED FROM THE PLIS FOR MIS/MONITORING

by the CNA
1) Name of PLI with IFSC code* :
2) PLI code*:
3) Category of PLI (Bank/HFC/others) *:
4) Name of borrower*
5) PAN Card No:
6) Address of borrower:
7) Mobile No. of borrower:
8) Category (whether SC/ST/OBC/Minority/Person with Disability/Gen/Others*:
9) Sex: Male/Female/Transgender*:
10) Unique Identification (Aadhaar/Voter’s card/PAN card/Any other Number or a certificate
of house ownership from Revenue Authority of beneficiary’s native district etc*):
11) Property type* (01-Flat; 02-Single Storey house; 03-Repair/extension)
12) Carpet area of house (in sq mtrs) * [put √]
• Upto 30 sq mtrs
• Upto 60 sq mtrs
13) Complete postal address of property with PIN code*:
14) Ownership mode (only in case of enhancement). Whether
• Self owned
• Inherited
15) Loan amount
16) Purpose of loan * (For purchase/Construction/Extension):
17) Tenure of loan*:
18) Housing loan interest*:
19) Moratorium period if any*:
20) Repayment start date*
21) NPV of the subsidy
22) Date of credit of subsidy
23) Amounts of subsidy credited
(as subsidy is to be credited in instalments in proportion to the loan disbursed)
24) Source of the application (Whether direct/ULB/NGO/Developers) *:

* Mandatory Fields

25
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Annexure 3
(Para 8.1 of the Guidelines)

Memorandum of Agreement (MoA)

THIS AGREEMENT is made on this ___________________ day of _______________ (month),

201__ (year) between the Government of India, through the Ministry of Housing and Urban Poverty
Alleviation, hereafter referred to as First Party;

AND

The State/UT Government of _____________ (name of the State/UT) through its Hon’ble Governor/
Administrator, hereafter referred to as Second Party;

WHEREAS, the Second Party shall participate with the First Party, for carrying out its responsibili-
ties under the Housing for All Mission (HFA);

AND WHEREAS the First Party and the Second Party have agreed to abide by the ‘Scheme
Guidelines’ of HFA, issued by the First Party;

AND WHEREAS the Second Party has agreed to implement the mandatory conditions as pre-
scribed in the ‘Scheme Guidelines’ of HFA, issued by the First Party, as per agreed timelines, as
indicated in detail at Annexure ‘A’;

AND WHEREAS the First Party has considered the documents mentioned in Annexure ‘A’ and
found them consistent with the goals and objectives of HFA.

NOW THE PARTIES WITNESSED as follows:

1. That the First Party shall release its share of central financial support as per the ‘Scheme
Guidelines’ of HFA, issued by the First Party, upon signing of this Memorandum of Agree-
ment (MoA).

2. That the Second Party shall abide by its share of financial support as per the ‘Scheme Guide-
lines’ issued by the First Party.

3. That the First Party shall not bear any escalation to the project cost due to any delays in
execution or otherwise, and shall be borne by the Second Party.

4. That the Second Party shall set-up the ‘Administration and Implementation Structure’ as
necessary to implement HFA.

5. That the Second Party shall comply with ‘Monitoring and Evaluation’ mechanisms and pro-
cedures as specified in the ‘Scheme Guidelines’ of HFA issued by the First Party.

26
 Ministry of Housing and Urban Poverty Alleviation

6. That the Parties to the agreement further covenant that in case of a dispute between the
parties the matter will be resolved through mutual discussion.

7. That in case there is any delay in the implementation of the mandatory conditions or sub-
mission of any periodic reports etc. by the Second Party, due to the circumstances beyond
the control of Second Party i.e. Force Majeure, the decision on the matter of extension of
time for the implementation of the goals and objectives of HFA shall be at the discretion of
the First Party.

8. That in case of any breach regarding the terms and conditions of HFA, the First Party shall
be entitled to withhold subsequent installments of the grant.

IN WITNESS THEREOF, all the parties have signed on these presents of Memorandum of Agree-
ment in the presence of witnesses.

SIGNATORIES:

1. For Government of India through the Ministry of

Housing and Urban Poverty Alleviation (First Party)

2. For Government of (Name of State/UT)

(Second Party)

WITNESSES:

1. _________________________________

2. _________________________________

27
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Annexure ‘A’

Mandatory Conditions

Sl Conditions Specify the timeline

No. (Either through Executive Order/Notification/Legislation) (YY – YY)*

1. State/UTs shall remove the requirement of separate Non Agricultural

(NA) Permission in case land falls in the residential zone earmarked in the
Master Plan of city/town.

2. States/UTs shall prepare/amend the Master Plans earmarking land for Af-
fordable Housing.

3. State/UTs shall put in place a single-window- time bound clearance system

for layout approvals and building permissions.

4. States/UTs shall adopt pre-approved building permission and layout ap-

proval system for EWS/LIG housing or exempt approval below certain
built up area /plot area.

5. States/UTs shall legislate or amend existing rent laws on the lines of the
Model Tenancy Act circulated by the First Party.

6. States/UTs shall provide additional Floor Area Ratio (FAR)/Floor Space

Index (FSI)/ Transferable Development Rights (TDR) and relax density
norms, for slum redevelopment and low cost housing.

* Timeline should be within the Mission period i.e. by 2022.

28
 Ministry of Housing and Urban Poverty Alleviation

Annexure 4
(Para 8.3 of the Guidelines)

HOUSING FOR ALL BY 2022 (HFA)

FORMAT A: INFORMATION OF BENEFICIARY BEING COVERED

UNDER SLUM REDEVELOPMENT

1. Name of head of the family

2. Sex [Male: 01, Female: 02]

3. Father’s name

4. Present Address and Contact Details

i. House No.
ii. Name of the Slum
iii. City
iv. Mobile No.

5. Permanent Address
i. House/Flat/Door No.
ii. Name of the Street
iii. City/ Village
iv. District, State

6. Aadhaar Card Number, if not available

Voter ID Card/Any other unique identification number
or a certificate of house ownership from Revenue Authority of beneficiary’s native district

7. Number & age of family members

Relationship to Head of the Gender Age Aadhaar/Voter ID Card/Any other unique identifica-
Family tion number or a certificate of house ownership from
Revenue Authority of beneficiary’s native district

8. Religion
[Hindu-01, Muslim-02, Christian-03, Sikh-04, Jainism-05,
Buddhism- 06, Zoroastrianism-07, others (specify)]

9. Caste
[General-01, SC-02, ST-03, OBC-04]

10. Whether the family owns any house/ residential land

anywhere in India (Yes/No)

a. If yes, then location details (Locality/ City/ State)

b. If yes, then extent of land in sq.mtrs

Signature/Thumb Impression of Head of

Household
Signature of representative of ULB in-charge
of above information

29
 Pradhan Mantri Awas Yojana : Scheme Guidelines

FORMAT B - REQUIRED INFORMATION OF BENEFICIARY*

1. Name of head of the family

2. Sex [Male: 01, Female: 02]

3. Father’s name

4. Present Address and Contact Details

i. House/Flat/Door No.
ii. Name of the Street
iii. City
iv. Mobile No.

5. Permanent Address
i. House/Flat/Door No.
ii. Name of the Street
iii. City/ Village
iv. District, State

6. Ownership details of existing house

[Own – 01, Rent – 02, Otherwise – 03]

7. Type of the house based on roof type

[Pucca (CC & Stone Slab)-01, Semi-Pucca
(Asbestos/ Steel Sheet, Tiled)-02,
Katcha (Grass/thatched, Tarpaulin, Wooden)-03]

8. Number of rooms in the dwelling unit excluding kitchen

9. Aadhaar Card, if not available
Voter ID Card/Any other unique identification number
or a certificate of house ownership from Revenue Authority of beneficiary’s native district

10. Number & age of family members

Relationship to Head of the Gender Age Aadhaar/Voter ID Card/Any other unique identifica-
Family tion number or a certificate of house ownership from
Revenue Authority of beneficiary’s native district

11. Religion
[Hindu-01, Muslim-02, Christian-03, Sikh-04, Jainism-05,
Buddhism- 06, Zoroastrianism-07, others (specify)]

12. Caste
[General-01, SC-02, ST-03, OBC-04]

13. Bank Details

a. Bank account number
b. Name of the Bank & Branch

30
 Ministry of Housing and Urban Poverty Alleviation

14. Number of Years of Stay in this Town/City

[0 to 1 year -01, 1 to 3 years- 02, 3 to 5 years- 03, More than 5 years-04]

15. Size of existing dwelling unit (Carpet area in square

meters)

16. Whether the family owns any house/ residential land

anywhere in India (Yes/No)

c. If yes, then location details

(Locality/City/State)
d. If yes, then extent of land in Sq.mtrs

17. Employment Status

(Self Employed – 01, Salaried – 02, Regular Wage – 03,
Labour – 04, Other – 05)

18. Average monthly income of household (in Rs.)

19. Does the family have a BPL Card (Yes / No)

a. If yes, Provide BPL Card No

20. Housing requirement of family

(New House – 01, Enhancement – 02)

21. In case of enhancement, please specify enhancement

required [One room/Kitchen/Bath/Toilet or combination of these]

22. Preferred component of Mission under which beneficiary

need assistance under HFA
i. Credit linked subsidy - 01
ii. Affordable Housing in Partnership - 02
iii. Self construction - 03

Signature/Thumb Impression of Head of Household

Note: * Same format shall be used for ineligible slum dwellers and beneficiary of those slums, which have not been
considered for slum redevelopment through Private Participation as per process flow chart of HFAPoA at page No.17 of
the “Housing for All” Scheme guidelines.

Signature of representative of ULB in-charge

of above information

31
 Annexure 5

32
(Para 8.6 of the Guidelines)

Formats for Housing for All Plan of Action

I. Slum-wise Intervention strategies for Tenable Slums

Total No. of Whether ‘in-situ’ Required Area FSI/FAR Name of other

Area of the Eligible
Name of Slum House- for in-situ Re- slum if proposed Proposed Year of
Slum in Slum redevelopment with
the Slum holds as per development in for resettlement in Intervention
sq.mts Households Private Participation
………….* Sq.mts this slum
Existing Proposed
Pradhan Mantri Awas Yojana : Scheme Guidelines

Note: * Please mention source of data

II. Slum-wise Intervention strategies for Untenable Slums

Proposed Development Strategy

Total No. of Slum i. Affordable Housing Project (AHP)
Area of the Slum in Proposed Year of
Name of the Slum Households as per ii. Credit Linked Subsidy Scheme (CLSS)
sq. mtrs Intervention
………………* iii. Beneficiary Led Construction
iv. Clubbing with other Tenable Slums**

Note: * Please mention source of data

** Please mention (i), (ii), (iii) or (iv) as per the case or combination thereof
 III. Year-wise Proposed Interventions in Slums

Number of Beneficiaries and Central Assistance Required (Rs. in Crores)

Redevelopment through Private
Beneficiary-led Construction Credit Linked Subsidy Affordable Housing in Partnership Total
Participation
Year
No. of
No. of No. of No. of Ben- No. of No. of Ben- No. of No. of Ben- No. of Ben-
Benefici- Amount Amount Amount Amount Amount
Slums Slums eficiaries Slums eficiaries Slums eficiaries eficiaries
aries
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
Total

IV. Year-wise Proposed Interventions for Other Urban Poor based on demand survey

Number of Beneficiaries and Central Assistance Required (Rs. in Crores)

Beneficiary-led Construction Credit Linked Subsidy Affordable Housing in Partnership Total
Year
No. of Beneficiaries Amount No. of Beneficiaries Amount No. of Beneficiaries Amount No. of Beneficiaries Amount

2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
Total
Ministry of Housing and Urban Poverty Alleviation

33
 V. Year-wise targets under different components

34
Number of Beneficiaries and Central Assistance Required (Rs. in Crores)
Total
Interventions 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21 2021-22

No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount No. Amount

Redevelopment
through Private Slums
Participation

Slums
Subsidy for
beneficiary-led/
improvement of Non-
existing house Slums

Slums
Credit linked
Pradhan Mantri Awas Yojana : Scheme Guidelines

subsidy to
individual ben- Non-
eficiaries Slums

Slums
Affordable
Housing in Part- Non-
nership (AHP) Slums

Total

Signature Signature
(State Level Nodal Officer) (Secretary/Principal Secretary, Concerned Department)
 Annexure 6
(Para 8.6 & Para 14.4 of the Guidelines)

Summary Sheet for Annual Implementation Plan (AIP) for the year **______________

Achievement for Target for Remaining Targets as

Admissible Components Target for Year*
Year* Year** per HFAPoA

A. Beneficiary-led Construction

• New Houses

• Enhancement

• Sub Total (A)

B. In-Situ Slum Rehabilitation with Participation of Private Sector

• Number of Slums

• Number of Households (B)

C. Affordable Housing in Partnership (EWS Category) (C)

D. Credit linked subsidy

• EWS Households

• LIG Households

• Sub Total (D)

E. Total (A+B+C+D)

Note: * The year preceding to the year of this AIP

Ministry of Housing and Urban Poverty Alleviation

** The year for which Annual Implementation Plan has been prepared

35
 I. Subsidy for Beneficiary-led Individual House Construction or Enhancement

36
Beneficiary-led Individual House Construction or Enhancement in Slums & Non – Slum Areas
No. of Beneficiaries Resource Mobilization (Rs. in Crores)
Year * New Hous- Enhancement of exist- Enhancement of Total State Beneficiary ULB share (if ap-
New Housing Central Share
ing ing House existing housing Cost share Share plicable)
2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
Total
Note: * Please fill the projected figures for the year for which AIP is proposed and actual figures of achievement for preceding years
Pradhan Mantri Awas Yojana : Scheme Guidelines

II. Slum Rehabilitation of Slum Dwellers with Participation of Private Sector

Slum Rehabilitation through Participation of Private Sector

Resource Mobilization (Rs. in Crores)
Year * No. of Slums No. of Beneficiaries
Total Cost Central Share State share Beneficiary Share ULB share (if applicable)

2015-16
2016-17
2017-18
2018-19
2019-20
2020-21
2021-22
Total
Note: * Please fill the projected figures for the year for which AIP is proposed and actual figures of achievement for preceding years
 III. Affordable Housing in Partnership with Public & Private sectors

Affordable Housing in Partnership with Public & Private Sectors

Resource Mobilization (Rs. in Crores)

Year * Number of Projects No. of Beneficiaries
Total Project Cost (AHP) Central Share State Share ULB Share (if applicable)

2015-16

2016-17

2017-18

2018-19

2019-20

2020-21

2021-22

Total

Note: * Please fill the projected figures for the year for which AIP is proposed and actual figures of achievement for preceding years
Ministry of Housing and Urban Poverty Alleviation

37
 IV. Affordable Housing for Weaker Section through Credit Linked Subsidy

38
Affordable Housing through Credit Linked Subsidy

Resource Mobilization (Rs. in Crores)

Number of Beneficiaries Availed Loan
Year * Credit Link Subsidy Availed for Estimated Loan Estimated Interest Subsidy Availed
EWS LIG EWS LIG EWS LIG
New Housing
2015-16
Enhancement (Existing Housing)
New Housing
2016-17
Enhancement (Existing Housing)
New Housing
2017-18
Enhancement (Existing Housing)
New Housing
2018-19
Pradhan Mantri Awas Yojana : Scheme Guidelines

Enhancement (Existing Housing)

New Housing
2019-20
Enhancement (Existing Housing)
New Housing
2020-21
Enhancement (Existing Housing)
New Housing
2021-22
Enhancement (Existing Housing)
Total

Note: * Please fill the projected figures for the year for which AIP is proposed and actual figures of achievement for preceding years

Signature Signature
(State Level Nodal Officer) (Secretary/Principal Secretary, Concerned Department)
 Ministry of Housing and Urban Poverty Alleviation

Annexure 7A
(Para 14.5 of the Guidelines)

Format for ‘In-situ’ Slum Redevelopment Projects with Private Partner

1 Name of the State :

2 Name of the City :
3 Project Name :
4 Project Code * :
5 State Level Nodal Agency :
6 Implementing Agency (Urban Local Body/ Development :
Authority/ Housing Board/ Urban Improvement Trust/
Designated Slum Rehabilitation Agency/ Private agency/
Developer)
7 Date of approval by State Level Sanctioning and Monitoring :
Committee (SLSMC)
8 Project Cost ( Rs. In Lakhs)
9 i. Status of slum :
(Please write: 1 if notified, 2 if recognised and 3 if identi-
fied)
ii. Total slum area (Sqm.) :
iii. Area under slum rehabilitation (Sqm.) :
10 No. of existing slum households : Gen SC ST OBC Minority Total

11 No. of eligible slum households :

12 No. of houses proposed (slum rehabilitation only) with :
carpet area
13 Whether private partner has been selected through open :
competitive bidding? If yes, date of bidding
14 Incentives to Private Partner :
i. Existing FSI in the area :
ii. FSI provided in the project :
iii. Other Incentives, if any :
15 i. GoI grant required (Rs. 1.0 lakh per eligible slum dweller) :
(Rs. In Lakhs)
ii. State grant, if any (Rs. In Lakhs)
iii. ULB grant, if any (Rs. In Lakhs)
iv. Beneficiary Share (Rs. In Lakhs)
Total (Rs. In Lakhs)
16 Whether technical specification/design for housing have been :
ensured as per Indian Standards/NBC/ State norms?
17 Type of temporary arrangement for beneficiaries during :
construction period provided in the project (Rent / Transit
Shelter)

18 Whether the provision of Civic infrastructure has been :

made as per applicable State norms/CPHEEO norms/IS
Code/NBC?
i. Water Supply (Yes/No)
ii. Sewerage (Yes/No)
iii. Road (Yes/No)
iv. Storm Water Drain (Yes/No)
v. External Electrification (Yes/No)
vi. Solid Waste Management (Yes/No)
vii. Any other, specify
viii. In case, any infrastructure has not been proposed,
reasons thereof

39
 Pradhan Mantri Awas Yojana : Scheme Guidelines

19 Whether disaster (earthquake, flood, cyclone, landslide etc.) :

resistant features have been adopted in concept, design and
implementation of the project?
20 Whether Quality Assurance is part of the Project, if not, :
how it is proposed to be ensured?
21 Whether O&M is part of Project, if yes, for how many :
years?
22 Whether encumbrance free land is available for the project :
or not?
23 Project brief including any other information ULB/State :
would like to furnish

*State will give code number to each project sanctioned under HFA as ‘ABCDEFGHIJK’
(Where, ‘AB’ is State Code as per census, ‘CDEFGH’ is City Code as per census, ‘IJ’ is running number of project of the city and ‘K’ is
project component code i.e. ‘K’ will be 1 - for In-situ slum redevelopment, 2- for Relocation, 3 – for AHP and 4 – for Beneficiary-led
Construction or enhancement)

It is hereby confirmed that State/UT and ULB have checked all the beneficiaries as per guidelines of
HFA. It is also submitted that no beneficiary has been selected for more than one benefit under the
Mission including Credit Linked Subsidy Scheme (CLSS) component of the Mission.

Consolidated information of all slums being redeveloped with use of Mission grants is enclosed.

Signature Signature
(State Level Nodal Officer) (Secretary/Principal Secretary, Concerned Department)

40
 Ministry of Housing and Urban Poverty Alleviation

Enclosure with Annexure 7A

(Para 14.5 of the Guidelines)

Consolidated information
on slums being redeveloped in the State, ULB wise as on Date

Date:___________

No. of DUs (slum

Name of the Date of Project cost (slum reha- Deployment of GoI share
S. No. rehabilitation
project Sanction bilitation Part) (Rs. in lakhs)
only)

ULB-1

i)

ii)

iii)

ULB-2

i)

ii)

iii)

Signature Signature
(State Level Nodal Officer) (Secretary/Principal Secretary, Concerned Department)

41
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Annexure 7B
(Para 14.5 of the Guidelines)

Format for Projects under Affordable Housing in Partnership (AHP)

1 Name of the State :

2 Name of the City :

3 Project Name :

4 Project Code* :

5 State Level Nodal Agency :

6 Implementing Agency (Urban Local Body/ Develop- :

ment Authority/ Housing Board/ Urban Improve-
ment Trust/Private agency/ Developer)
7 Date of approval by State Level Sanctioning and :
Monitoring Committee (SLSMC)
8 Project Cost (Rs. in Lakhs) : Housing Infrastruc- Other Total
ture

9 No. of EWS beneficiaries covered in the project : Gen SC ST OBC Minority Total

10 Project Duration ( in months) :

11 Whether Sale Price is approved by State/UT? :

12 If yes, Sale price of EWS unit (Rs. in Lakhs)

13 Total No of houses proposed in the Project :

i) No. of EWS unit :

ii) No. of LIG units :

iii) No. of MIG units :

iv) No. of HIG units :

v) No of Commercial units, if any :

14 Whether open and transparent procedure has been :

envisaged to select private partner, if private partner
has been considered?
15 No. of EWS houses eligible for Central Assistance :

16 i. GoI grant required (Rs. 1.50 lakh per :

eligible EWS house) (Rs. In Lakhs)
ii. State grant (Rs. In Lakhs)

iii. Implementing Agency share (Rs. In Lakhs)

iv. Beneficiary Share (Rs. In Lakhs)

v. Total (Rs. In Lakhs)

17 Whether technical specification/ design for housing :

have been ensured as per Indian Standards/NBC/
State norms?
18 Whether the provision of Civic infrastructure has :
been made as per applicable State norms/CPHEEO
norms/IS Code/NBC?
19 Whether adequate social infrastructure facilities :
covered in the project;
If no, whether the same are available in vicinity?

42
 Ministry of Housing and Urban Poverty Alleviation

20 Whether disaster (earthquake, flood, cyclone, land- :

slide etc.) resistant features have been adopted in
concept, design and implementation of the project?
21 Whether Quality Assurance is part of the Project, if :
not, how it is proposed to be ensured?
22 Whether O&M is part of Project, if yes, for how :
many years?
23 Whether encumbrance free land is available for the :
project or not ?
24 Project brief including any other information ULB/ :
State would like to furnish

*State will give code number to each project sanctioned under HFA as ‘ABCDEFGHIJK’
(Where, ‘AB’ is State Code as per census, ‘CDEFGH’ is City Code as per census, ‘IJ’ is running number of project of the city and ‘K’ is
project component code i.e. ‘K’ will be 1 - for In-situ slum redevelopment, 2- for Relocation, 3 – for AHP and 4 – for Beneficiary-led
Construction or enhancement)

It is hereby confirmed that State/UT and ULB have checked all the beneficiaries as per guidelines of
HFA. It is also submitted that no beneficiary has been selected for more than one benefit under the
Mission including Credit Linked Subsidy Scheme (CLSS) component of the Mission.

Signature Signature
(State Level Nodal Officer) (Secretary/Principal Secretary, Concerned Department)

43
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Annexure 7C
(Para 14.5 of the Guidelines)

Format for Projects under Beneficiary led Construction or Enhancement

1 Name of the State :

2 Name of the City :
3 Project Name :
4 Project Code * :
5 State Level Nodal Agency :
6 Implementing Agency/ ULB :
7 Date of approval by State Level Sanctioning and :
Monitoring Committee (SLSMC)
8 Project Cost (Rs. in Lakhs) :
9 No. of beneficiaries covered in the project : Gen SC ST OBC Minority Total

10 (i) No. of Beneficiaries ( New Construction) :

(ii) No. of Beneficiaries ( Enhancement) :

11 Whether selected beneficiaries have rightful owner- :

ship of the land?
12 Whether building plan for all houses have been :
approved?
13 i) GoI grant required (Rs. 1.5 lakh per eligible :
beneficiary) (Rs. in Lakhs)
ii) State grant, if any (Rs. in Lakhs) :

iii) ULB grant, if any (Rs. in Lakhs) :

iv) Beneficiary Share (Rs. in Lakhs) :

v) Total (Rs. in Lakhs) :

14 Whether technical specification/ design for housing :

have been ensured as per Indian Standards/NBC/
State norms?
15 Whether disaster (earthquake, flood, cyclone, land- :
slide etc.) resistant features have been adopted in
concept, design and implementation?
16 Brief of project, including any other information ULB/ :
State would like to furnish

*State will give code number to each project sanctioned under HFA as ‘ABCDEFGHIJK’
(Where, ‘AB’ is State Code as per census, ‘CDEFGH’ is City Code as per census, ‘IJ’ is running number of project of the city and ‘K’ is
project component code i.e. ‘K’ will be 1 - for In-situ slum redevelopment, 2- for Relocation, 3 – for AHP and 4 – for Beneficiary-led
Construction or enhancement)

It is hereby confirmed that State/UT and ULB have checked all the beneficiaries as per guidelines of
HFA. It is also submitted that no beneficiary has been selected for more than one benefit under the
Mission including Credit Linked Subsidy Scheme (CLSS) component of the Mission.

Signature Signature
(State Level Nodal Officer) (Secretary/Principal Secretary, Concerned Department)

44
 Ministry of Housing and Urban Poverty Alleviation

Annexure 8
(Para 14.6 of the Guidelines)

Form GFR 19 – A
[See Rule 212 (1)]
Form of Utilisation certificate
Certified that out of Rs. __________________ Grants-in-aid sanctioned during the year ___________
in favour of _____________ under this Ministry/Department Letter no. given in the table below and
Rs ._________________ on account of unspent balance of the previous year, a sum of Rs. _______
______________ has been utilised for the purpose of __________________________________,
for which it was sanctioned and that the balance of Rs. ________________ remaining utilised at the
end of the year has been surrendered to Government (Vide No ____________________, dated
________________ ) / will be adjusted towards the Grants-in-aid payable during the next year.
Sl No. Letter No. and date Amount

Total:-

2. Certified that I have satisfied myself that the conditions on which the grants-in-aid was sanctioned
have been duly fulfilled/ are being fulfilled and that I have exercised the following checks to see that
the money was actually utilised for the purpose for which it was sanctioned.

3. Physical progress of the projects, where Government of India grants have been utilised, is en-
closed.

Kinds of checks exercised

1.
2.
3.
4.
5.
Signature1-------------------------------------
Designation ----------------------------------
Date-------------------------------------------

_________________
1
To be signed by Principal Secretary/Secretary of the concerned department of the State/UT Govt.

45
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Enclosure to Annexure 8
(Para 14.6 of the Guidelines)

Mission for Housing for All by 2022

Mission Directorate
Format for Physical Progress of Projects Approved under the Mission

Name of State:
Name of the State Nodal Agency:
Component I : Slum rehabilitation in partnership with Private Sector
(In Rs. Crs.)
No. of slum Funds utilised
Title of the Approved Project Approved GoI Other
Households
project Cost Support funds GoI Others
covered

Component II : Affordable Housing in Partnership

(In Rs. Crs.)
Approved GoI Other Funds utilised
Title of the No. of EWS House- Approved
Support funds
project holds sanctioned Project Cost
GoI Others

Component III : Subsidy for Individual Beneficiary for House

construction/enhancement
(In Rs. Crs.)
Approved GoI Funds utilised
Title of the No. of EWS Approved Other
Support
project houses approved Project Cost funds
GoI Others

Physical progress2 No. of Houses

01 02 03 04 05 06
Component I
Component II
Component III

_________________
2
Ground Level: 01, Plinth Level: 02, Roof Level:03, Finishing stage: 04, Superstructure completed (For multistory only): 05
and Completed: 06

46
 Ministry of Housing and Urban Poverty Alleviation

Applicable at the time of claiming the 3rd and final instalment of 20%

Houses Allotted
Name of the Houses com-
Houses Sanctioned In the name of
project pleted In the name of woman In Joint Name
Male

Enclosure: Undertaking

Undertaking :
This is to certify that the beneficiaries covered under the above-mentioned project have not been
extended benefits under remaining other component of the Mission.

Signature (with Seal) Signature (with seal)

Authorised Signatory Authorised Signatory
Designation of the Official Designation of the Official
State Level Nodal Agency (Name) Department
Date Name of State/UT
Date

47
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Annexure 9
(Para 14.8 of the Guidelines)

COMPLETION CERTIFICATE

STATE/UNION TERRITORY,_____________________________________

CERTIFICATE FOR CLOSURE OF PROJECTS SANCTIONED UNDER THE MISSION

Name of Project:

Project cost approved by GoI (in Rs. Crs.):

GoI share approved (in Rs. Crs.):

No. of houses approved:

No. of houses completed:

It is hereby undertaken that the project(s) approved under the Mission for “Housing for All” stands
complete in all respect wherein the houses are built along with necessary infrastructure as per
prevailing byelaws of the States/UTs and as approved by the centre. Central share released for this
purpose has been fully utilised towards the approved components of the project.

Signature (with Seal) Signature (with seal)

Authorised Signatory Authorised Signatory3
Designation of the Official Designation of the Official
State Level Nodal Agency (Name) Department
Date Name of State/UT
Date

_________________
3
To be signed by Principal Secretary/Secretary of the concerned department of the State/UT Govt.

48
 Ministry of Housing and Urban Poverty Alleviation

Annexure 10
(Para 15.1 of the Guidelines)

Format for Utilization Certificate for CNAs

FORMAT FOR CLAIMING SUBSIDY UNDER CREDIT LINKED SUBSIDY SCHEME

(CLSS) OF THE MINISTRY OF HOUSING & URBAN POVERTY ALLEVIATION,
GOVERNMENT OF INDIA.
(To be furnished by Central Nodal Agencies (NHB/HUDCO to the MoHUPA)

Summary
S.No. Particulars In Rs. Cr.

1 Total cumulative subsidy received from MoHUPA

2 Interest earned on the funds available with CNA

Subsidy amount released to PLIs so far (Please give State-wise and bank-wise details as per
3
attached Format)
4 Balance subsidy including interest available with CNA

5 Subsidy sought from MoHUPA

It is certified that

1) As certified by the PLIs, the loans have been sanctioned and disbursed in accordance with
the extant guidelines for CLSS of the Ministry of Housing & Urban Poverty Alleviation
Government of India.

2) It is further declared that there has been no negligence on the part of the CNA or any of
its officers in verifying the claims and sanctioning the amounts to PLIs of the above referred
loan accounts and the same has been sanctioned as per guidelines.

3) There is no duplicate claim of the subsidy for any of the aforesaid loan accounts.

(Authorized Signatory)

(Name and Designation)

Date:

Place

49
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Enclosure to Annexure 10
(Para 15.1 of the Guidelines)

State- wise releases

State  No. of Beneficiaries Amount of Subsidy released

Total

PLI- wise releases

 PLI No. of Beneficiaries Amount of Subsidy released to the PLIs

Total

50
 Ministry of Housing and Urban Poverty Alleviation

Annexure 11
(Para 16.1 of the Guidelines)

Central Sanctioning-cum-Monitoring Committee for “Housing for All” Mission:

Composition

1 Secretary, Ministry of Housing and Urban Poverty Alleviation Chairperson

2 Secretary (UD), Ministry of Urban Development Member

3 Secretary, Ministry of Finance (Deptt. of Expenditure) Member

4 Secretary, Ministry of Social Justice and Empowerment Member

5 Secretary, Ministry of Health and Family Welfare Member

6 Secretary, Department of Banking, Ministry of Finance Member

7 Secretary, Ministry of Labour Member

8 Secretary, Ministry of Minority Affairs Member

9 Joint Secretary (UPA), Ministry of HUPA Member

10 Joint Secretary and Financial Adviser, Ministry of UD/HUPA Member

11 Mission Director (Smart Cities), Ministry of UD Member

12 Joint Secretary and Mission Director in charge of Housing for All, Ministry of Housing and Urban Member
Poverty Alleviation

Note : The Chairperson of the CSMC will have the authority to co-opt any other member or invite special invitees
to the meeting of the CSMC as and when need arises.

Illustrative Functions of Central Sanctioning and Monitoring Committee

(CSMC)

CSMC will be important decision making body for the Mission at GoI level. Key functions of CSMC
are as given under:

1. Overall review and monitoring of the Mission

2. Assessing resource requirement based on HFAPoA and AIP submitted by States/UTs
3. Approval of central releases under various components of the Mission
4. Approval of Capacity Building Plans of States/UTs
5. Devising financial and other norms for various activities undertaken as part of the Mission
6. Approval of Annual Quality Monitoring Plans, Social Audit Plans etc.
7. Any other important issues required for implementation of the Mission

51
 Pradhan Mantri Awas Yojana : Scheme Guidelines

Annexure 12
(Para 16.4 of the Guidelines)

State Level Sanctioning & Monitoring Committee (SLSMC)

under “Housing for All” Mission

Composition

1 Chief Secretary Chairperson

2 Secretary of Urban Development/Municipal Administration/Local Self-Government/Housing Vice-Chairman

dealing with implementation of HFA Mission

3 Secretary of Urban Development/Municipal Administration/Local Self-Government/ Member

Housing

4 Secretary, State Finance Department Member

5 Secretary, Revenue/Land Administration Member

6 Secretary (Housing) of the State Govt. Member

7 Secretary in charge of Environment of the State Government Member

8 Convener, State Level Banker’s Committee Member

9 State Nodal Officer, HFA Member

Note: The Chairperson of the SLSMC will have the authority to co-opt any other member or
invite special invitees to the meeting of the SLSMC as and when need arises.

Illustrative Functions of State level Sanctioning and Monitoring Committee

(SLSMC)

SLSMC will be in-charge of overall implementation of the Mission including following:

1. Approval of Housing for All Plan of Action (HFAPoA)

2. Approval of Annual Implementation Plan
3. Approval of DPRs under various components of the Mission
4. Approval of Annual Quality Monitoring Plans
5. Reviewing progress of approved projects in the State and cities
6. Monitoring of implementation of Mission
7. Any other issues required for effective implementation of the Mission.

52
 Pradhan Mantri Awas Yojana

Housing for All (Urban)

Scheme Guidelines
2015

The Joint Secretary (Housing for All)

Ministry of Housing & Urban Poverty Alleviation
Government of India Ministry of Housing & Urban Poverty Alleviation
Room No.116, G-Wing, Nirman Bhawan, New Delhi
Tel: 011-23061419; Fax: 011-23061420 Government of India
E-mail: [email protected]
Website: http://mhupa.gov.in
Clarifications: PMAY Scheme

The clarifications furnished by NHB are produced as under:

Common Questions Clarifications

Whether income of EWS family For eligibility for interest subsidy, non-owning of pucca
(up to Rs.3/- lacs) or LIG family house in India in the name of any family member and
(between Rs.3/- lacs to Rs.6/- family income as defined for EWS or LIG beneficiaries
lacs) to be ensured are the main criteria.
simultaneously with the carpet
area of house up to 30 sq. The eligible beneficiary can build house of larger area
mtrs. (for EWS) or 60 sq. mtrs. (with higher Home Loan limit); but interest subsidy
(for LIG), for interest subsidy would be limited only to the 1st portion of Loan limit of
eligibility? Rs.6/- lacs.

The carpet area of the house will be considered when

Home Loan is requested for incremental housing
[renovation (kutcha / semi pucca to pucca house) or
addition to existing dwelling unit i.e. already owning
house].
When subsidy is available only Home Loan to eligible beneficiary can be sanctioned
for Home Loan limit up to for higher limit say Rs.10/- lacs or Rs.15/- lacs or Rs.20/-
Rs.6/- lacs, whether Loan can lacs, as per Bank’s own guidelines; but interest subsidy
be sanctioned beyond the will be available only for a 1st portion of Loan limit of
limit of Rs.6/- lacs? Rs.6/- lacs and additional limit beyond Rs.6/- lacs will
be non-subsidized.
When interest subsidy is Home Loan to eligible beneficiary can be sanctioned
available up to -15- years, for a longer period say 20 or 25 or 30 years, as per
whether Home Loan can be Bank’s own guidelines; but interest subsidy will be
sanctioned for a longer available only for a maximum period of -15- years
period? (including moratorium period). i.e. Equal interest
subsidy for equal size of Home Loan
Is there any ceiling / cap on For interest subsidy, Home Loan to be sanctioned as
Rate of Interest to be charged per Bank’s own guidelines, including rate of interest.
to the eligible beneficiary’s
Home Loan account?
Whether house constructed or For interest subsidy, house should be in the name of
acquired in the name of male female head of the family or in the joint names of
head of the family is eligible male head of the family with his wife or vis-a-versa. In
for interest subsidy? case, there is no female head in the family, the house
can be acquired in the name of male head of the
family.

However, unmarried son or daughter cannot acquire

house in his or her name, though the family may be
non-owning pucca house in India.
In nutshell, all Home Loans sanctioned to ‘Urban Poor’, falling under income criteria of
EWS or LIG, non-owning pucca house by the family in India and house acquired in the
single name of female head of the family or jointly with her spouse or vis-a-versa are
eligible for interest subsidy PMAY scheme; irrespective of size of the house, Home Loan
limit, Period of Loan and rate of interest.

However, upfront interest subsidy will be available @6.50% p.a. for maximum Home
Loan limit of Rs.6/- lacs, for a period of -15- years and Net Present Value (NPV) @
discount rate of 9%. The maximum subsidy comes to around Rs.2.20 lacs.

Since the available interest subsidy is upfront (reduces sanctioned loan limit sizably)
and is in addition to margin to be contributed by the beneficiary, both together
improves repaying capacity of the borrower and LTV Ratio, reducing the risk.

Accordingly as conveyed vide letter to Zones & Regions vide BCC:RB:107/80 dated
13.04.2016, Branches are requested to:

i) Identify all eligible Home Loan accounts sanctioned on or after 17.06.2015 (effective
date of the scheme) which can be covered under PMAY scheme and lodge the
subsidy claims in all eligible accounts.

ii) Henceforth, cover all eligible Home Loan accounts under PMAY scheme for lodging
the subsidy claims.

Further, all eligible accounts to be sanctioned under PMAY scheme should be titled as
‘Baroda Home Loan – under PMAY’, Scheme Code: LA 191, with usual convents that
though the account is covered under PMAY scheme, the interest subsidy will be
credited as and when received from NHB and Bank will not be held responsible for
rejection of the claim by NHB or Central Government, for whatsoever reason.

For marketing of Home Loan accounts under PMAY scheme, each State Government
has State Level Nodal Agency (SLNA) who are having list of eligible Urban Poor under
EWS or LIG. Our SMSs are requested to contact / remain in touch with them for
generation of Home Loan business under PMAY scheme.

****