e-Circular

PBU-AUTO LOANS. Sl. No. : 215/2012 - 13 Circular No. : NBG/PBU/AL-CARLOANS/7/2012 13 Tuesday,June 05,2012. .

MASTER CIRCULAR SBI CAR LOAN SCHEME

As on 31st May, 2012

STATE BANK OF INDIA AUTO LOAN DEARTMENT PERSONAL BANKING BUSINESS UNIT CORPORATE CENTRE MUMBAI

Master Circular No. PBU/

Date: 31st May, 2012

All the Branches/LHOs

Sir, MASTER CIRCULAR CAR LOAN We have, periodically, issued instructions to Branches/LHOs and other establishments with regard to Car Loans. A Master Circular incorporating all the existing guidelines/instructions/directives has been prepared and is appended. This Master Circular consolidates all the instructions issued upto 31st May 2012 by us from time to time. The individual circulars consolidated now are listed in the Appendix.

Yours faithfully,

Chief General Manager (Personal Banking)

Sr. No. I

INDEX Description SBI Car Loan Scheme 1. Purpose 2. Eligibility 3. Minimum Income 4. Authorised Branches 5. Loan Amount 6. EMI/NMI Ratio 7. Margin 8. Repayment 9. Rate of Interest 10. Penal Interest 11. Processing Fee 12. Security 13. Insurance 14. Mode of Disbursement 15. Prepayment Penalty 16A. Pre-sanction survey and KYC B. Employment of verification agencies C. Liabilities in CIBIL report- Discretion D. Implementation of Risk Scoring Model E. Implementation of Loan Originating Software 17. Inspection 18. Documents to be obtained 19.A. Payment of Service Charge to Car Dealers 19.B. Empanelment of ALC 20. Transfer of Accounts 21. Place of availing loan 22. Takeover of Loans 23.Reimbursement of costs of car purchased by own sources 24. Discretion Powers 25. Processing Time 26. Financial Inspection : Operational Risk : Weak Spots 27. Online Sourcing of Applications through SBI Website 28. Review Procedure of Rejected Applications 29. Control Report & Irregularity Report 30. Loans under Credit Khazana 3

Page No. 9 9 9 9 10 11 11 11 12 13 14 16 16 16 17 17 17 17 18 18 18 18 18 19 20 21 21 21 21 21 22 22 23 23 24 24

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31. Documentation 32. Details of Employment of verification agencies 33. Details of Liabilities in CIBIL report- Discretion 34. Salient features of Risk Scoring Model 35. Annexures Car I. Loan Application Car II. Irrevocable letter of Authority Car III. Irrevocable letter of Authority Car IV. Letter from Branch to Dealer/Supplier Car V. Loancum-Hypothecation Agreement Car VI. Guarantee Agreement Car VII. Arrangement Letter Car VIII. Schemes for loans for purchase of cars Annexure A. Under Certificate of Posting Annexure B. Under Certificate of Posting Annexure C. Interview form for car loan finance to agriculturists Annexure D. Income Calculation Sheet CAR LOAN USED CAR 1. Purpose 2. Eligibility 3. Authorised Branches 4. Loan Amount 5. Margin 6. Valuation 7. Take Over of Loans 8. Repayment 9. Rate of Interest 10. Penal Interest 11. Processing Fee 12. Security 13. Documentation 14. Insurance 15. Mode of Disbursement 16. Prepayment Penalty 17. Pre-sanction survey and KYC 18. Inspection 19. Discretionary Powers 20. General Papers to be submitted 21. Processing Time 22. Transfer of Accounts 23. Place of availing loan 4

24 24 30 33 45 45 53 55 57 59 66 71 76 77 78 79 80 82 82 82 83 84 84 85 85 86 87 88 89 90 90 90 91 91 91 92 92 92 93 93 93

III

IV

CERTIFIED PRE-OWNED CAR LOAN SCHEME 1. Purpose 2. Eligibility 3. Authorised Branches 4. Loan Amount 5. Margin 6. Valuation 7. Takeover of Loans 8. Repayment 9. Rate of Interest 10. Penal Interest 11. Processing Fee 12. Security 13. Documentation 14. Insurance 15. Mode of Disbursement 16. Prepayment Penalty 17. Pre-sanction survey and KYC 18. Inspection 19. Discretionary Powers 20. General Papers to be submitted 21. Certified Pre-Owned car financing to individuals Maruti True Value and similar other dealers 22. Processing Time 23. Payment of Service Charge to Car Dealers 24. Transfer of Accounts 25. Place of availing loan 26. Payment of service Charges to car Dealers Annexures Car I. Loan Application Car II. Irrevocable letter of Authority Car III. Irrevocable letter of Authority Car IV. Letter from to Dealer/Supplier Car V. Loancum-Hypothecation Agreement Car VI. Guarantee Agreement Car VII. Arrangement Letter Car VIII. Schemes for loans for purchase of cars Annexure A. Under Certificate of Posting Annexure B. Under Certificate of Posting Annexure C. Sale of Certified Pre-owned Cars CAR LOAN OVERDRAFT 5

through

94 95 95 96 96 96 97 97 97 98 99 100 100 100 100 101 101 101 102 102 102 102 103 103 103 103 103 105 105 113 115 117 119 125 130 134 135 136 137 139

1. Purpose 2. Eligibility 3. Authorised Branches 4. Loan Amount 5. Margin 6. Repayment 7. Interest 8. Penal Interest 9. Processing Fee 10. Security 11. Documentation 12. Insurance 13. Mode of Disbursement 14. Prepayment Penalty 15. Inspection 16. Discretionary Powers 17. General 18. Processing Time 19. Payment of Service Charge to Car Dealers Annexure A. Under Certificate of Posting Annexure B. Under Certificate of Posting Car I Car Loan Application form Car II Irrevocable letter of authority Letter from Borrower to his /her Employer Car III - Irrevocable letter of authority Letter from Employer to the Bank Car IV - Letter from Branch to dealer/supplier Car V - Loancum-Hypothecation Agreement Car VI - Guarantee Agreement Car VII - Arrangement Letter Car VIII Schemes for loans for purchase of car under CAR LOAN-OVERDRAFT. SBI NRI CAR LOAN 1. Purpose 2. Eligibility 3. Authorised Branches 4. Loan Amount 5. Margin 6. Repayment 7. Rate of Interest 8. Penal Interest 9. Processing Fee 6

139 139 140 140 141 141 142 143 144 145 145 145 145 146 146 146 146 147 147 149 150 151 159 161 163 165 171 176 180 181 181 181 182 182 183 183 183 184 185

VI VII VIII

IX

10. Security 11. Documentation 12. Insurance 13. Mode of Disbursement 14. Prepayment Penalty 15. Inspection 16. Discretionary Powers 17. General 18. Payment of Service Charge to Car Dealers 19. Annexures Car I. Loan Application Car II. Letter from Branch to dealer/supplier Car III. Loan-cum-hypothecation agreement Car IV. Guarantee Agreement Car IV-A. Guarantee Agreement Car V. Arrangement Letter Car VI. Draft power of attorney Car VIA. Execution of Guarantee Agreement Car VII. Declaration Annexure A. Under Certificate of Posting (To Borrower & Guarantor) Annexure B. Under Certificate of Posting Annexure C. Name of the Branches SBI HYUNDAI SUBVENTION SCHEME( Santro,i10,i20,Accent) Details of the scheme LOWER MARGIN SCHEME FOR TATA CARS Details of the scheme SBI TOYOTA SUBVENTION SCHEME( Coroll(Petrol),Etios (Petrol),Liva(Petrol) Details of the scheme SBI TWO-WHEELER LOAN 1. Purpose 2. Authorized Branches 3. Scheme 3.1 - Eligibility 3.2 - Loan Amount 3.3 - Type of Loan 3.4 - Margin 3.5 - Repayment 3.6 - Interest 3.7 - Penal Interest 3.8 - Processing Fee 7

186 186 186 187 187 187 187 187 188 190 190 198 200 206 207 212 216 218 219 220 221 222 224 224 227 227 229 229 233 233 233 233 233 233 234 234 234 235 236 237

3.9 - Security 3.10 - Payment of Service Charge to Two- Wheeler Dealers 3.11 - Documents 3.12 - Insurance 3.13 - Mode of Disbursement 3.14 - Inspection 4. Papers are to be submitted along with loan application 5. Implementation of Credit Scoring Model 6. Up-selling of Two Wheeler Loans to Car Loan Customers 7. Annexures Annexure-1- Loan application Two-Wheeler-II. Irrevocable letter of authority (Letter from the applicant to his disbursing authority) Two-Wheeler-III. Irrevocable letter of authority ( Letter from the employee to the branch) Two-Wheeler-IV. Letter from Branch to dealer/supplier Two-Wheeler-V. Loan-cum-hypothecation agreement Two-Wheeler-VI. Guarantee Agreement Two-Wheeler-VII. Arrangement Letter Two-Wheeler VIII. Irrevocable letter of Authority (Where Drawing and Disbursing Officer Is Himself the Applicant) Two-Wheeler-A. Under Certificate of Posting Two-Wheeler-B. Under Certificate of Posting X SBI TWO-WHEELER LOAN FOR NEWLY RECRUITED CLERICAL STAFF Details of the scheme Empanelment of Auto loan Counselors Free Accident Insurance: Accidental Death Cover Extension in repayment period on increase in floating rate of interest MOUs with different Manufacturers APPENDIX LIST OF CIRCULARS INCLUDED

237 238 238 238 239 239 239 240 252 253 253 261 263 265 267 273 278 281 282 283 284 284 287 313 319 322 326

XI XII XIII XIV XV

SBI CAR LOAN SCHEME FOR NEW VEHICLES ONLY 1. Purpose:Term Loan & Overdraft will be sanctioned by the Bank for purchase of new passenger cars, Multi Utility Vehicles (MUVs) and Sports Utility Vehicles (SUVs). 2. Eligibility:(i) Regular employees of State/Central Govt., Public Sector Undertakings, corporations, private sector companies, and reputed establishments. (ii) Professionals, Self-employed, Businessmen, proprietary/partnership firms and others who are income tax assesses can avail of the loan facility. (iii) Persons engaged in agriculture and allied activities can also avail the car loan. Income Tax return is not required in case of agriculturists. AGE:-21-65 years. (For sanction of loan) Loans can be granted by sanctioning authority to individuals who have sufficient, regular and continuous source of income for servicing the loan repayment beyond 65 years. Loan must be fully repaid before the borrower attains the age of 70 years. 3. Minimum Income:i) Salaried: Net Annual Income of applicant and/or co-applicant if any, together should be Rs. 2,50,000/- p.a. and above. Income from other sources like bank interest/dividends of listed Companies, rent, agriculture income can be added. (Clarification: net monthly income will be equivalent to monthly Gross salary net of all statutory deductions like Income Tax and compulsory deductions like Employee Provident Fund etc. No other deductions should be deducted from the monthly Gross Salary to arrive at the NMI. Accordingly, NAI will be 12 times of NMI as defined above.) ii) Self-employed, Professionals, Proprietary/Partnership firms and Businessmen: Net Profit or Gross Taxable income of Rs. 2,50,000/- p.a. as per ITR after adding back depreciation and deducting repayment of all existing loans. Business Income 9

from other sources like bank interest/ dividends of listed Companies, rent, agriculture income can be added. iii) Agriculturists: Net annual income of applicant and/or co applicant together to be Rs. 2, 50,000/-. The Net Annual Income will be arrived at based on the nature of the activity, land holding, cropping pattern, yield etc. We have designed a format for the use of operating units to facilitate easy sanctions to this category of customers. We attach a copy of interview form to be obtained from the customer as Annexure-C and the working sheet for computation of income as Annexure-D. (In terms of clarification issued vide Circular No. PB/AL/33 dated 29th March, 2011.) (Clarification: Regular income from all sources can be considered provided the sanctioning authority is satisfied with the proof of income. Income of spouse, father, mother, brother, sister, son and daughter may be included for arriving at the loan eligibility (any one). The person whose income is included will join as a coborrower. The maximum number of applicants should be restricted to two.) 4. Authorized Branches:4.1 It has been decided by the appropriate authority to authorize All scale III & above branches, all PBBs, all District Head Quarter branches, Project Area branches and all Branches authorized by the AGM (RBOs) to process, sanction and disburse car loans till 30.9.2012 4.2 All Branches will market this product. 4.3 The following should be ensured:a. Mapping of these branches to the dealers of different car manufacturers have to be ensured. Number of car loans per branch have to be given as targets and monitored; b. The identified branches have to process the car loan applications through LOS, where in score cards/ CIBIL checks have already been automated; c. The loans will be controlled by the controllers; d. RACPCs will accept the documents from the branches at fortnightly intervals for follow up and maintenance; e. The RC book and the insurance certificate etc will be followed up by the respective RACPCs in BPR centres and by the sanctioning branches in Non BPR centres. 4.4 The branches other than those mentioned under 4.1 above will source the car loan applications and get them processed and sanctioned through respective CPCs. 10

5. Loan Amount:Maximum loan amount: a) For Salaried: The maximum loan amount that can be granted would be restricted to 48 times the net monthly income of salaried persons (i.e., net of all deductions including actual monthly tax deductions at source). b) For Agriculturists: In case of Car loan to persons engaged in Agriculture and allied activities, the annual net income should be arrived at by the operating units based on the nature of their activity (i.e. Farming, dairy, poultry, and orchards), land holding, cropping pattern, yield etc and average level of income derived there from in the area; c) For others: Up to 4 times the Net Profit or Gross Taxable Income per annum as per ITR after adding back depreciation and deducting repayment of all existing loans. 6. EMI/NMI Ratio:Depending on Net Annual Income EMI/NMI Ratio will be as under: Net Annual Income EMI/NMI Ratio Upto Rs. 5 Lakhs Above Rs. 5 Lakhs and upto Rs.10 Lakhs Above Rs. 10 Lakhs should not exceed 50% should not exceed 60% should not exceed 75%

In case of tie-ups with reputed PSUs/corporate or institutions or owing to strategic reasons the sanctioning authority will have the discretion to grant a higher loan subject to EMI/NMI ratio not exceeding 60% for Net Annual Income upto Rs. 5 lac. The EMI will include all EMIs towards existing loans and proposed loan and the NMI will be equivalent to the Total Gross Income after adding back depreciation (if applicable) less statutory and compulsory deductions like Income Tax, Employee Provident Fund etc. 7. Margin:15% of the total cost of the vehicle i.e. on road price. The total cost of vehicle is inclusive of one time road tax, octroi, registration, insurance and accessories.

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The maximum cost of accessories should not exceed 5% of the cost of vehicle or Rs. 25,000/- whichever is less. Any consumer offer or discounts announced by the manufacturers and dealers should be reduced from the on-road price of the vehicle. The sanctioning authority will have the discretion to reduce the margin by 5% where check off facility from a reputed employer is available. In case of customers under Corporate Salary Package/tie-up, margin is reduced by 5% and loan is available up to 90% of the on road price of the vehicle. 8. Repayment:8.1 Maximum 7 years for all categories of borrowers. However, the repayment period will, in no case, exceed beyond 70 years of the age of the borrower. 8.2 The customer will have option for payment in shorter duration. 8.3 The repayment should be fixed on the basis of equated instalments, preferably with a check off facility in the case of salaried persons. 8.4 The Equated Installment will be determined on the basis of the current rate of interest. 8.5 Where check off facility is not available post-dated cheques should be obtained. 8.6 Under check off arrangement, an Irrevocable Letter of Authority, as per Annexure-Car II, is required to be obtained from the borrower (employee) concerned and a letter of undertaking is to be taken from the borrowers employer as per Annexure-Car III. 8.7. In case of Govt. Officers, who are themselves the drawing and disbursing authorities and take car loans, a Letter of Undertaking on the lines of Annexure- Car VIII need only be obtained. 8.8. Repayment for loans to self employed, professional and businessmen can be accepted from Cheque drawn from their own or firms account after obtaining the firms mandate. 8.9. Wherever Electronic Clearing Service is available, the Bank may use the services for paperless debit of instalments. However six Cheques to cover the loan amount should be obtained from the borrower. 8.10. In case of car loan granted to person enganed in agriculture and allied activities the periodicity of instalments for repayment should be decided upon merits of each case, on a realistic basis, coinciding with the harvest of the crop 12

at half yearly/ yearly intervals or coinciding with the generation of income from ancillary/ agricultural activity pursued by the borrower in monthly/ quarterly instalments; 8.11. Repayment cycle: For loans disbursed on or before 15th of the month and on or after 16th of the month, the repayment date should be fixed as 10th and 20th of the following month respectively. 8.11 Seizure of vehicle: Whenever an instalment remains unpaid it should be immediately brought to the notice of the borrower by issuance of a notice as per Banks extant instructions and if the instalments still remain unpaid the procedures enumerated in the Corporate Centre letter no. PB/AL/1/169 dated March 17, 2006 should be followed. 8.12. If a borrower remits any amount for credit of his/her car loan account in a branch other than the home branch, either by way of cash, local cheque or multi-City cheque, drawn on any Bank, the same may be accepted without collecting Non-Home Branch charges. However, normal charges may be recovered in case of outstation cheques which are to be sent for collection. (Cir. No. RE/HL/AX/18 dated 8th June 2011) 8.13. Instructions regarding reshedulement of existing loans in case of continuous increase in Interest rates are provided in chapter No. XXII separately. 9. Rate of Interest:w.e.f. 23.04.2012: For Term Loans the rate of interest will be 1.25% above Base Rate (10.00% currently) i.e. present effective rate being 11.25% p.a. For Overdraft accounts the differential of 0.50% will be maintained over the above mentioned rates, 1.75% above Base Rate (10.00% currently) i.e. 11.75% p.a. The Product Codes are as under: SBI Car Loan ( TL) : 6251-1125 SBI Car Loan ( OD) : 6254-1125 (Circular. No. PB/AL/1/3 dated 21st April, 2012) Rate of Interest for Mahindra Reva Electric Cars:For Term Loans the rate of interest will be 1.00% above Base Rate (10.00% currently) i.e. present effective rate being 11.00% p.a. 13

For Overdraft accounts the differential of 0.50% will be maintained over the above mentioned rates, 1.50% above Base Rate (10.00% currently) i.e. 11.50% p.a. 9.1 Concession of 0.25% to 0.50% in interest rate is available to the customers who are covered under the Corporate Salary Package depending upon the category of Corporate/Institution, subject to an upper ceiling on concessions, as advised from time to time. 9.2 All loans should be given only on a floating rate basis, i.e., the effective interest will increase or decrease with every increase or decrease in Base Rate or whenever the rate of interest on Car Loans are revised without changing Base rate, this should be advised to the borrower(s). 9.3 While generally the Equated Monthly Installment need not be changed with every change in the interest rate, should the borrower seek an EMI reduction consequent to a rate reduction the same may be permitted if the account is a Standard Asset and the loan outstanding is atleast Rs. 5 lakh and the interest rate reduction is of 1% or more. The above facility will be permitted only once during the currency of the loan. 9.4 The Bank reserves the right to increase the EMI in case of interest rate rise. 10. Penal Interest:10.1 Extant policy on Penal Interest Rate on was reviewed in the light of the special characteristics and requirements of Personal Segment loans, and the Board has approved the revised Penal Interest Rate Policy for Personal Segment loans as under: Extant instructions for standard Personal Segment Loans Penal interest should not be charged for loans upto Rs.25,000/For loans above Rs.25000/- , penal interest rate @ 2% on the entire outstanding for the period of default should be recovered if the EMI remains unpaid for a period of 30 days from the due date. Revised instructions for proposed for standard Personal Segment Loans No change

For Loans above Rs.25000/- , if the irregularity exceeds EMI or Installment amount, for a period of one month , then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part installment or part EMI remains 14

overdue, then penal interest should not be levied*. This provision has been made to avoid application of penal interest on Personal Segment Loan accounts where stipulated EMIs or instalments are being paid regularly by the borrowers. *Irregularity in the account in CBS may arise for several reasons : (i) small difference in the EMI amount on the PDC and the actual EMI in the system, (ii) delay of a few days in presenting PDC, (iii) change in loan interest rate not large enough to warrant regeneration of repayment schedule etc.. With even an irregularity of Rs.1, the account status becomes Irregular and consequently, after 30 days, penal interest @2% is charged for the entire loan outstanding. As the EMIs can never take care of the irregular portion, the application of penal interest becomes perpetual, which further increases the irregularity and leads to build up of Indicative NPAs. This also leads to customer complaints and avoidable extra work for the operating staff in investigating and making refunds. 10.2 As per the extant loan policy of the Bank, the sanctioning authority has been given the discretion for sanctioning waiver of application of penal interest for default in payment of interest/installment in case of Term Loans. It has now been decided to add the following qualifiers for use of this discretion:(a) waiver will only be ex-post facto, i.e. the system will levy penal interest as per the rule, and appropriate authority can permit refund, and (b) discretion should be utilized only where the borrowers claims for waiver is merited on facts such as late presentation of PDCs by us, etc. 10.3 Provisions of this policy may also be used by the operating units to correct the existing anomalies in the p-segment loan accounts which have arisen due to application of incorrect penal interest. 10.4 Deputy Managing Director & Group Head (NBG) has been given authority, subject to compliance with RBI guidelines, BCSBI/IBA Code etc. to raise the floor limit above the minimum prescribed by the RBI, (Presently Rs.25,000 as per minimum floor prescribed by RBI) within the Bank according to business exigencies but in compliance with RBI guideline. (Circular No PBBU/HL/PM/9(A) dated 18th June 2010)

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11. Processing Fee:Processing fee will be recovered on the loan amount upfront as under: i) When loans are sanctioned: 0.51% of the loan amount subject to minimum of Rs. 1020/- and maximum of Rs. 10200/-. ii) When loans are rejected: 25% of the Processing Fee will be retained if the application is rejected after pre-sanction survey subject to Minimum of Rs. 510/and maximum of Rs. 2550/-. iii) The General Manager of respective Network at the Circle can reduce processing fee up to 50%, in car loan in respect of :a) Short term promotional drives; b) Bulk finance with availability of check-off from reputed employers c) For high value individual car loan cases In case of the takeover of the car loans of Rs. 5 lakhs and above from other banks/NBFCs the DGM (B & O) and Network Head can give discretion to waive processing charges up to 50% and 100% respectively. iv) Concession in processing fee is available to customers under the Corporate Salary Package depending upon the category of Corporate/Institution, as advised from time to time. 12. Security:a) Hypothecation of vehicle and noting of hypothecation charge in the books of R.T.O. No other security is to be obtained. b) Any other security including third party guarantee may be obtained only when there is a need for credit enhancement e.g. credit score below threshold limit, or any other business consideration. 13. Insurance:13.1 The vehicle purchased is to be kept comprehensively insured in the name of the borrower for the market value or at least 10% above the loan amount outstanding, whichever is higher, and the Banks interest as a instalments should be noted in the certificate of insurance and insurance policy. A copy of this is to be retained with the loan documents. 13.2 Insurance register is to be maintained.

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14. Mode of Disbursement:14.1 The proceeds of the loan will be credited to the account of supplier/dealer by way of RTGS/NEFT facility. If dealer is maintaining account with SBI, his account will be credited through CBS system. 14.2 A letter will be sent to the dealer advising him the date of credit in his account along with UTR number of the remittance. The format of the letter is available in the Master Circular as Annexure Car-IV. 14.3 The names and addresses of the dealers are available in LOS and therefore the genuineness of the dealer can be checked from LOS. Also the account number of the dealers should be obtained beforehand, and any change in account number should be dealt with caution. (Letter No PB/AL/1/272 dated 8th December 2010) 15. Prepayment Penalty: No prepayment penalty will be applicable w.e.f 1st May 2011. (Circular. No. PB/AL/1/5 dated 29th April, 2011) 16. A. Pre-sanction survey and KYC:To be conducted as under: i) Any one official from MPST or Branch will visit the customer for KYC & Presanction survey. The KYC, Pre-sanction survey & opinion report prepared by the official of any of these offices under his/ her signature & seal will be acceptable to sanctioning authority. ii) For existing customer, Pre-sanction survey and KYC can be waived if the address of the customer has not changed and he is a; a) Home/Personal Loan customer with minimum one years satisfactory track record. Or b) A car loan customer with a satisfactory track record, who wants to avail another car loan, Or c) Customer having satisfactory deposit account with average balance of Rs. 50,000/- & above and banking with us for at least one year. Or d) Under Corporate Tie-ups where check-off is available. B. Employment of Verification Agencies: The RACPCs/sanctioning branches may utilize the services of verification agencies which have been empanelled for the purpose of address/employment verification.

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The compliance with KYC norms would, however continue to be the responsibility of the Branch/ Sales Force, which sources the proposals. (Details appended at the end of the scheme) C. Liabilities in Credit Bureau Reports: Branches/RACPCs will access the CIBIL data base, in a bid to trace credit facilities, if any availed by such borrowers from other banks. For car loans over Rs.5 lacs, at least two credit agencies reports will be assessed as per the latest policy, once the services of RBI certified CICs (Credit Information Companies) made operational in the Circles. (Details appended at the end of the scheme) D. Implementation of Risk Scoring Model: The scoring model will be implemented as a credit decision-making tool and will strengthen the existing system of sanction or rejection of loan applications. No loan will be processed without application of Risk Scoring Model. (Details appended at the end of the scheme) E. Implementation of Loan Originating Software: All the car loan applications will be processed in LOS at the BPR centres and even at Non-BPR centres once the LOS coverage is extended to them. 17. Inspection:For Standard Asset accounts periodical inspections will be waived after the initial inspection. However, if there is a default of 2 monthly instalments, inspection would be required. In case of NPA accounts inspections would be made twice a year. Inspection register will be maintained properly. 18. Documents to be obtained:For Salaried Individuals : i) Statement of Bank account of the borrower for last 6 months ii) Proof of Identity: - (any one of the following) Passport copy/ PAN Card/ Voters ID card/ Driving Licence etc. iii) 2 passport size photographs of borrower iv) Income Proof: - Latest salary slip with form 16. v) Address Proof:- (any one of the following) Ration card/Driving Licence /Voters ID Card/Passport Copy/Telephone Bill/ Electricity Bill/Life Insurance policy/ PAN Card. vi) I.T. Returns/Form 16 for the last 2 years. ( It is not necessary to obtain both I.T return and Form-16 from the applicant). Relaxation may be permitted by obtaining ITR/Form 16 for 1 year by one step higher sanctioning officer, provided they are satisfied about the genuineness of source, amount and continuity of income and repayment capacity of the borrower 18

over the loan tenor. In all such cases the basis for income verification should be properly recorded on the loan appraisal. For Self Employed, Professionals , Proprietary/Partnership firms & Businessmen i) Statement of Bank account of the borrower for last 6 months ii) Proof of Identity: - (any one of the following) Passport copy/PAN Card/ Voters ID card/ Driving Licence etc. iii) 2 passport size photographs of borrower iv) Income Proof: - Latest ITR for 2 years v) Address Proof: - (any one of the following) Ration card/Driving licence/Voters ID Card/Passport Copy/Telephone Bill/ Electricity Bill/Life Insurance policy/ PAN Card vi) I.T. Returns/Form 16 for the last 2 years. vii) Audited Balance sheet, P&L statement for 2 years, Shop & establishment act certificate/sales tax certificate/SSI registered certificate/copy of partnership. Relaxation may be permitted by obtaining ITR/Form 16 for 1 year by one step higher sanctioning officer, provided they are satisfied about the genuineness of source, amount and continuity of income and repayment capacity of the borrower over the loan tenor. In all such cases the basis for income verification should be properly recorded on the loan appraisal. For Agriculturists: i) Statement of Bank account of the borrower for last 6 months ii) Proof of Identity:- (any one of the following) Passport copy/ PAN Card/ Voters Id Card/ Driving Licence etc. iii) 2 passport size photographs of borrower iv) Address Proof: - (any one of the following) Ration card/Driving Licence/Voters ID card/Passport Copy/Telephone Bill/ Electricity bill/Life Insurance policy/ PAN Card v) Direct agricultural activity (crop cultivation) Khasra/Chitta Adangal (showing cropping pattern) Patta/Khatoni (showing land holding) with photograph. All land should be on free hold basis and ownership proof to be in the name of applicant vi) Allied agricultural activity (like Dairy, Poultry, Plantation/ Horticulture) documentary proof of running of the activities will be obtained. 19. A. Payment of Service Charges to Car Dealers/Dealer Sales Executive (DSE):With a view to improving our penetration and presence in auto loans market, we have devised a mechanism to compensate the car dealers for the services rendered by them in:

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i) ii) iii)

Explaining the comparative advantages of our product to potential customers, Convincing prospective customers about merits of obtaining car finance from us, Directing business to our branches.

For providing this service, the car dealers are required to deploy manpower for the purpose and in the process incur some direct and indirect expenses. The initiative is addressed to compensate for the services and is also in line with the market practice. Service charge would not be payable for vehicles financed to SBI staff members. In all other cases service charge will be paid as laid down below. The service fee is inclusive of the service tax and the payment of service tax to government is to be made by the car dealer.

19. A.1 For Dealers: A fee of 1.5% of the loan amount will be paid on the business sourced by the dealers. The service fee is inclusive of the service tax. The fee should be paid by the sanctioning authority at the time of the disbursement of the car loan. For DSEs: A fee of 0.25% of the loan amount (maximum Rs.3000/-) will be paid as incentive to Dealer Sales Executives (DSEs) for the loan applications sourced by them at all Centres. The incentive will be paid at the time of the disbursement of loan. 19. A.2 A list of sales executives should be obtained from the car dealers on their letter head, which will be retained at the branch/CPC for identification of the Sales Executives for payment of incentives. 19. A.3 At Rural CPCs: The RCPC are only processing and sanctioning loans received from branches and alternate channels. The execution of documents and disbursements is done at the branches and therefore the payment of Service Charges will be done from the disbursement office only. 19. A.4 The service fee is payable only when loan applications are sourced by Car Dealers to the Bank. The paying offices should maintain proper records of payments for verification and audit by the controlling office and Branch Inspectors. 19.B. Empanelment of Auto Loan Counselors The services of the Auto Loan Counselors will be utilized to explain our car loan schemes to the prospective customers and to source the applications at the dealerships. In this connection, the appropriate authority has approved empanelment of retired officers of the Bank on contract as Auto Loan Counselors 20

(ALC). In case we fail to engage adequate number of retired employees or to get desired results from them, the appropriate authority has also approved empanelment of individuals with certain qualifications from SBI customers (other than staff) and others as Auto Loans Counselors (ALC). The ALC will play the role of a Direct Sales Executive of car dealers for booking Car Loans and he/she will be paid an incentive of 0.2% of the car loan amount for the proposal sourced and sanctioned with no fixed remuneration. No amount will be payable to Dealers/DSEs/ALCs for loans NOT SOURCED by them. (Details appended as Chapter-XX on Page No 319) 20. Transfer of Accounts:Standard assets can be transferred from one Branch to other Branch at the request of the borrower. 21. Place of availing loan:a) Loan can be availed at the place of permanent residence or work. However, inspection and verification of asset would be done by an office located at the centre where the asset is maintained. b) Inspection charges are to be recovered every time an inspection is carried out as per the laid down instructions. The inspection fee of Rs. 750/- will be recovered by the inspecting branch by raising a debit on the financing branch and credit it to its commission account. 22. Takeover of Loans (i) Takeover of car loans will be considered selectively where: (a) the vehicle is not more than 2 years old (b) it is a single ownership vehicle (c) no insurance claim has been availed and (d) the account of the borrower with the other bank is a Standard Asset i.e. all repayments have been made as per terms of sanction of the original financier. (ii) The loan should be repaid within 7 years from the date of the original purchase of the vehicle 23. Reimbursement of costs of car purchased by own sources: We may also reimburse finance for the cars purchased out of own funds which are not more than 3 month old. The rate of interest applicable to New Cars will be available for loan by way of reimbursement. 24. Discretionary Powers: To be exercised as per the Delegation of Powers advised by LHO. 21

25. Processing Time 25.1 It should be as per the norms set by the BPR department. Presently the maximum time schedule for receipt of application and sanction/disbursal of the loan is 2 days. 25.2 For effective monitoring of the TAT a register should be maintained at the Branch/Offices on the lines of the register maintained for SIB advances. 26.Financial Inspection under Section 35 of B.R.A as on 31.3.2007 Operational Risk: Weak Spots in Sanction and Disbursements The Reserve Bank of India has forwarded the Financial Inspection Report under Section 35 of Banking Regulation Act, 1949 (position as March 31, 2007) in respect of the whole Bank. 2. In the report RBI has pointed out irregularities which are contrary to the laid down instructions in the sanction and disbursement of Auto Loans as under: i. Copy of invoices from the auto dealers not obtained and verified, ii. IT return/ Salary slip not obtained, iii. Copy of RC book with banks lien market therein not obtained, iv. Copy of insurance policy and relevant cash receipts not obtained/expired for auto loans v. Quotations are accepted of outstation dealers without verifying the veracity of these documents vi. Auto Loans sanctioned on the basis of old quotations vii. Primary security is not available as the charges are not registered with ROC 3. The RBI has also pointed out that in the case of verification of proof of residence, office, genuineness of salary slips of income etc. to establish the identity and the responsibility to ensure compliance with KYC norms should remain with the branches. Similarly the instructions issued by the Bank for recovery agents from time to time on the Dos and Donts and code of conduct etc. should be followed meticulously. 4. The laxity on the part of the branches in following the laid down instructions and overlooking of such violations by the controllers has led to quick mortality in loan accounts and perpetration of frauds at few centres. We therefore, reiterate that the extant instructions in the sanction, conduct, supervision and follow up of advance should be complied with. (PB/AL/1/5 September 27, 2008)

22

27.Online Sourcing of Applications through SBI Website An online car application system has been provided on the SBI website as an additional means of sourcing Car Loan applications from customers. This facility has been made available for select cities where the Bank has set up MPSTs. 2. The online facility provides for filling the application form online and eligible loan amount is automatically calculated by the system on the basis of information provided by the applicant. On submission the online application form is forwarded to the respective MPSTs email id mapped to the centre. 3. The CME, MPST should ensure that all online applications received in his email are dealt on the same day, by calling the customers over phone or by SMS or by sending a suitable communication through e-mail, advising the customers of the documents required for processing the Auto Loan. 4. Applications pertaining to loans required at areas outside the service areas of the MPSTs should be forwarded to the nearest branches/MPSTs concerned under advice to the customer. 5. A record of all applications received through this channel percentage of sanctions including TAT so as to measure the efficacy of this initiative may be maintained by MPSTs on an ongoing basis and advised to Corporate Centre on monthly basis. 6. As more than 100 applications are being received through the SBI website on a daily basis, the MPSTs and the other operating units need to be sensitized to act swiftly and follow up the leads generated on priority and convert maximum leads into car loans as per the extant scheme. (PBBU/AL/1/12 June 03, 2009) 28.Review Procedure of Rejected Applications The Auto Loans Dept. is in the midst of an aggressive business campaign to increase our presence in car loans. To achieve success it is crucial that the value chains both front and back-end follow standardized procedures across the business locations. We have been receiving complaints from customers that loan applications are sometimes rejected without assigning reasons. Some of the complainants have reported that they were denied loans without observing the guidelines applicable under the scheme. In order to ensure that genuine borrower are fairly treated and do not undergo harassment, we reiterate the Banks extant review procedure of rejected applications at RACPCs as conveyed by BPR Dept.

23

Chief Manager/ Manager (Sanction) would explain the reasons for rejection to the applicant on phone and give audience to his statements, before a proposal is finally rejected. The fact of audience should be properly recorded on the appraisal. This requirement has also been validated in the Workflow software which is being rolled out in the Circles. RACPCs should also ensure that the proposals are returned only for genuine reasons and not for fear of violation of TAT. They should maintain the TAT by close and strict monitoring of the process and sub-process flow at RACPC and by enforcing the Service Level Agreements with the Vendors, Lawyers, Valuers etc. Further, the rejection cases should be advised to branches/ customers immediately, and a list of such rejections be submitted to DGMs (O & C) once in a week for post facto perusal and review. DGMs observations on the reports should be noted by RACPC for future guidance. DGMs (O & C) should monitor on a regular basis and ensure that the loan applications at RACPC are not returned merely to maintain the sanctity of TAT

ii

29. Control Report and Irregularity Reports should be sent to controlling office as per extant instructions for Personal Segment Advances 30. Loans under Credit Khazana Extension of mortgage is not required to be made on the property mortgaged for securing Housing Loan. 31. Documentation i) ii) iii) iv) v) vi) vii) viii) Application Form Annexure-Car I Irrevocable Letter of Authority from the borrower Annexure-Car II Letter from the Drawing and Disbursing Officer Annexure-Car III Letter from Branch to supplier /dealer Annexure-Car IV Hypothecation Agreement Annexure Car V Guarantee Agreement where applicable Annexure-Car VI Arrangement Letter Annexure-Car VII Irrevocable Letter of Authority where Drawing and Disbursing Officer is himself the applicant Annexure-Car VIII

32.Details of Employment of Verification Agencies: 1. Background It is observed that with the huge growth in our Personal Segment Advances portfolio in the recent past, the branches are finding it increasingly difficult and 24

time consuming to carry out verification and due diligence functions at the time of sanction of P segment loans. The practice among our competitors like ICICI Bank, HDFC Bank, etc. is to engage outside agencies to carry out due diligence functions on their behalf, resulting in a competitive advantage to them in terms of ease and speed in delivery of retail loans. 2. Existing Process Currently, our existing procedures require submission of the borrowers Proof of Identity, Proof of Residence, Proof of Business Address (for non-salaried individuals), Proof of Income/ Salary Certificate from employer etc. Due to increase in volume of loans, our branch officials find it difficult to get time for traveling out and completing the verification tasks for pre-sanction survey. The increasing expectations of the public for quick, hassle free retail loan delivery along with availability of superior banking services from our competitors has resulted in attrition of our market share, especially in larger centers. 3. Benefits of Outsourcing Method (i) Complete scope of verification services The service provider will provide full verification services by verifying the correctness of the information given by the loan applicant by (a) Conducting Residence Address Verification by actually visiting the applicants residence, followed by back-check over phone. (b) Conducting Business Address Verification by actually visiting the applicants place of business/office, followed by back-check over phone. (c) Conducting Business Phone Verification by making a phone call to the applicants place of business/office. (d) Conducting Residence Phone Verification by making phone call to the applicants residence. (e) Circles may also consider verification of genuineness of salary slip of income, in some legitimate way, which may be negotiated at Circle level. The service provider will conduct all the above activities within a specified time frame, and submit a duly signed report on the formats provided by the Bank as well as required MIS at periodical intervals. The above processes, by confirming the identity of the borrower, will ensure against frauds. (ii) Automated processes in tune with Industry practices The service providers operate in a highly automated environment. At the start of the process, the client electronically forwards the data to the service provider. The information is sent to the field staff at short intervals by the back office over mobile in some agencies, while in other agencies, the information is sent in a physical printout. Within a stipulated time frame, the field staff complete the task of verification of residence and business addresses, and bring back/send back a 25

report. This report is captured in the agencys system, which generates a file for uploading to the client. A pending list is furnished every day to the client to become aware of the status of referrals. Repeated attempts (minimum 2) would be made before returning the case to the client. (iii) Dedupe checks A significant benefit of the verification agency is the availability of a database of defaulters, the size of which varies with the individual agency. The cases referred by banks, NBFCs, etc are matched with the defaulter data in an electronic process called a Dedupe Check, and a report is generated on positive/ negative outcome. This will help the Bank in improving the quality of the loan. (iv) Webcheck of Telephone numbers The service providers carry out a web check of telephone numbers of landline numbers available in CD format for BSNL and MTNL connections, to authenticate the phone numbers given by the borrowers. 4. Procedure to be followed Against the above backdrop, the ECCB has approved the engagement of the services of 25 verification agencies (as per list annexed to this Circular) for instalments by the Circles. The Scheme will be applicable to all P segment loans including Home Loans, Auto Loans and all other P segment loans (including Personal Loans and Education Loans) above a threshold limit of Rs.10,000/-. Proposals, where the verification agency submits a negative report will be turned down by the branch. However, exceptional cases will be reviewed with the consent of the controller after full due diligence is performed by the branch officers or staff. The arrangement will be reviewed after six months. Meanwhile, the branch will verify 2% of the cases handled by the outside agency, as a crosscheck of the quality of their services. 5. Confidentiality The agreement with the service provider will contain necessary safeguards relating to confidentiality, as under : The agency will undertake not to divulge information to any third party without the previous consent of the Bank, disclose any data, records, computer systems, accountholder data base, documentation, programs, confidential or proprietary material of the Bank. The agency will undertake to indemnify the Bank against legal cases, claims, damages, liabilities, losses, expenses or costs suffered by it on account of any fraud, omission, action, etc of the agency or its employees. 25 agencies coming under the desired price band (i.e. Rs.120-140 for the first four jobs), have been selected. The services of the agencies would be utilized keeping in view the sub-limits of cost of each job separately. The agencies will not be expected 26

to verify IT Returns of the borrower but they may be asked to verify income of the borrower in some legitimate way for which a separate amount would be paid subject to a ceiling of Rs.200/- for the aggregate cost of the 5 services. The cost of verification will be borne by the Bank. Lists of the 25 verification agencies detailing the centre-wise coverage across the country and range of negotiated rates are placed at Annexures I and II respectively to the Circular. (a) Compliance with KYC norms will remain the responsibility of the Branch, as defined in Corporate Centre letter No. NBG/BOD/GB/410 dated the 14th September 2002. We reiterate extracts from these guidelines below : As per extant instructions, the customer identification will be through an introductory reference from an existing account holder/person known to the Bank or on the basis of documents provided by the customer. The individuals in rural and semi-urban branches can open deposit accounts by providing introduction from a third person having satisfactory conduct of the account for the period stipulated by the Bank from time to time (at least with one year standing) or by well known local authorities or through staff members knowing the potential customer. In urban and metro centre branches, accounts should be opened on the basis of any of the following : i.) An introduction from a third person having satisfactory conduct of the account for the period stipulated by the Bank from time to time, presently at least 12 months or by well known local authorities or through stiff members knowing the potential customer. ii.) Passport alone when the address on the passport is the same as the address on the account opening form. iii.) Any other document from each of the under-noted two lists for a photo ID and proof of residence. List 1 1. Passport where the address differs 2. Election ID Card* 3. PAN Card* 4. Govt/Defence ID Card 5. ID Cards of reputed employers 6. Driving Licence List 2 1. Credit Card Statement** 2. Salary Slip** 3. Income/Wealth Tax Assessment Order 4. Electricity Bill** 5. Telephone Bill** * With a self signed cheque drawn on existing bank ** latest/recent. 27

Documents under List 1 will establish identity of the account holder and documents of List 2 will give present address of the account opener. While the above set of documents should normally suffice to establish both the identity and the correct address of the applicant, wherever this is not so (e.g. PAN Card and Salary Slip together may not provide proof of address) applicants to be asked to give an additional documents e.g. a letter from the employer giving the correct address, credit card statements, etc. In case of joint accounts, applicants who are not closely related to each other would require to establish their identity and address independently. In respect of NRI accounts, introduction and authentication/ verification of signatures to be made by a bank/Indian Embassy/High Commissioner/Consulate/Notary Public/Person known to the bank. Ration Card not to be used as document for establishing identity or proof of residence as per guidelines of Govt of India. (b) Approach Circles may identify one or more agencies from the list of approved agencies for centres in the Circle. The services of the agencies would be utilized by branches for products not covered by RACPCs. In addition, the local RACPC may, if it so wishes, also engage the services of the Verification Agency for the products currently handled by them viz. Home Loan/Auto Loan/Education Loan/Mortgage Loan/Rent Plus Loan in the interest of more efficient functioning of the RACPCs. The position will be reviewed by the Circle every quarter, with a view to monitor the quantum and quality of services rendered. The whole Bank position will be reviewed at the end of six months, and a decision would be taken regarding continuation/discontinuation of the arrangement. Guidelines for appointment and monitoring of the verification agencies are given below: The AGM (PB) at LHO will select agency(ies) (one or more) from the list approved by ECCB. He will thereafter visit the local office of the selected agency(ies) to familiarize himself regarding the processes of verification at the agency office. He will also fix up how the data will be transmitted to the agencies, at what periodicity this will be done, the text of the format of transmission and the mode of passing the details, list of centres, list of ranches, mode of sending the report according to the convenience of the branches, etc. to the field staff. The SLAs (time for completing the work, etc) will be fixed by the DGM/AGM (PB) in consultation with the agency. The agreement will be executed by DGM/ AGM (PB) and the authorized signatory of the agency (stamped in accordance with the law of the State). Monitoring of the agreement will be done by DGM/AGM (PB) on quarterly basis according to a format to be designed by the concerned DGM/AGM. The Identity Card issued to employees of the verification agencies undertaking verification relating to SBI will be signed by DGM/AGM (PB) of the Circle concerned. The

28

DGM/AGM will contact the local offices of SBI Cards for this purpose to seek their help. ( Circular No.PB/PL/177A/17 dated January 12, 2006) The empanelment of Verification Agencies, earlier approved by us, based on the list of Verification Agencies engaged by our subsidiary SBI Cards and Payment Services Pvt. Ltd (SBICPSL), is continued for a period of one year, w.e.f. 8.12.2006 (after which the position would again be reviewed), subject to the following conditions:(i) The presence of all the agencies is not considered adequate in certain areas, due to our vast network of branches, and hence a few Circles have sent recommendations for inclusion of new agencies from their area in the panel. The Circle CGMs may exercise the power to appoint local verification agencies and fix the charges for the scope of work within the terms and conditions approved by ECCB and advised to the Circles vide our Circular No. PB/PL/177A/17 dated 12th January 2006. A suitable Committee may be set up at the Circle level, for this purpose, chaired by a DGM. (ii) Each Circle may terminate the services of the existing list of agencies approved by us, or reappoint the existing one(s) depending on the level of satisfaction with the quality of service. However, each Circle may empanel only those agencies which have actually been engaged by that Circle so far. (iii) Any of the agencies advised vide our Circular No. PB/PL/177A/17 dated 12th January 2006 who have not been entrusted with any work by a Circle so far, should not be appointed for the current year unless the Circle is satisfied with their functioning and after getting approval from us for inclusion by that particular Circle. (v) The RACPCs may utilize the services of verification agencies which have been empanelled for the purpose, (vide our Circular No PB/PL/177A/17 dated 12th January 2006) for Personal Segment Loans only. The compliance with KYC norms would, however continue to be the responsibility of the Branch/OSF, who sources the proposals. (Circular No. PB/PL/57 dated January 11, 2007)

29

33. Details of Liabilities in Credit Bureau Reports The competent authority has approved as follows: i) In case of an existing housing loan borrower who propose to avail of car loan, the discretion may be given to sanctioning authority to consider the cases relating to credit card dispute like charges for late payment, finance charges, interest charges etc. Upto Rs.5000/- only. A simple declaration from borrower should be taken in such cases. ii) In all other car loan proposals, discretion may be given to sanctioning authority upto Rs.3000/- for issues relating to credit card dispute like charges for late payment, finance charges, interest charges etc. A simple declaration from borrower should be taken in such cases. (PBBU/AL/1/2 dated 26.05.2010) 1. PBBU : Guidelines on dealing with CIBIL Credit Information Report CIBIL Consumer Credit Information Report (CIR) is used in the Bank for the purpose of ascertaining the loan applicants credit discipline. With a view to bringing uniformity across the PBBU in the interpretation of CIBIL Credit Information Report we issue guidelines as under: 2. CIBIL Consumer Credit Information Report (CIR) (i) Specimen of CIR and explanation of various terms used in the report are furnished at Annexure A. These reports can be used for assessment of the borrowers past payment behavior and current capability to service the loan. (iii) Among other things CIR contains repayment history of upto 36 months in each loan/credit facility availed by the borrower from the CIBIL member institutions. 3. CIBIL CIR Features: Account Status : There is a field named STATUS in CIR. Blank Status Field indicates that the outstanding balance in the account has not been written-off. If the STATUS is not blank, it shows the status of the stressed assets when the amount due is written-off by the bank and/or suit is filed. Loan applications of the borrowers whose Account Status is not Blank should be handled as under: If the Account Status for a secured loan/unsecured loan /credit card is i) Suit Filed, (ii) Willful default (iii) Suit filed (Willful Default), (iv) Suit filed & Written-off, (v) Willful default & written-off or (vi) Suit filed (willful default) and written off, the applicants proposal may be rejected. Decisions regarding other Account Status may be taken as under: Account Status Settled Facility reported Credit Card Accept. 30 Non-Credit Card Reject

Settled Write-off

Deviation may be approved by the empowered authority* only in cases where: - the repayment is rescheduled and the performance is since satisfactory. -In cases where loans have been restructured under notifications issued by the State/Central Governments under special circumstances *Empowered Authority would be the Sanctioning Authority not below the rank of a Chief Manager who may approve the deviation after satisfying himself/herself that there is no history of multiple such write-offs/restructuring. In particular, the satisfactory performance of a secured loan after an incident of write-off may be considered a positive sign. 4. CIBIL Features: Days Past Due (DPD) /Asset Classification (upto 36 months) : This field in CIR shows repayment history in the borrowers account. Latest date of reporting appears on the extreme left and thereafter the data is reported in descending order of dates, as such data in this field is to be read from left to right as shown below : 180 XXX SUB Number of days past due date (DPD)/Asset Classification 08-07 07-07 06-07 Reporting date (mm-yy) Even if Status of the account is blank, for the purpose of loan assessment in the Bank, the account will be classified as an account in default if one or more of the following conditions are true about the DPD : (i) Present DPD is more than 30 days. (ii) DPD 60 days or more on more than one occasion during last 12 months, (iii) Asset Classification as SUB (Substandard), DBT (Doubtful), LSS (Loss), or SMA (Special Mention Account).

post Accept if single instance. Else deviation may be approved by the empowered authority.* Written-off Deviation may be approved by the empowered authority*. Restructured Deviation may be approved by the empowered authority*.

Reject

Reject

31

Overdues seen in the CIBIL Report would be dealt with as below: One overdue monthly payment in 24 months would be allowed provided DPD did not exceed 30 days, but not in the last 6 months. A single credit card default ( settled or otherwise) more than 5 years old, regardless of amount, may be ignored provided there are no other instances of overdues and credit discipline is demonstrated by regular repayment of other loans. If the account is in default as per the aforesaid criteria, deviation may be approved by the empowered authority as under: 5. Discretionary Powers for approval of deviations in respect of Accounts in default: Present authority structure for approval of deviation is as under: Disputed amount Present Authority Upto Rs.5,000/Sanctioning authority upto the rank of an AGM Above Rs.5,000 and less DGM(NCM) than or equal to Rs.25,000/ Above Rs.25,000/GM(Network) It has been decided to introduce a revised de-layered mechanism as under for approval of deviation in this respect with an objective of minimizing TAT without enhancing the probability of adverse customer selection: Empowered Authority Overdue amount upto Rs.10,000/Sanctioning authority not below the rank of a Chief Manager may approve the deviation after satisfying himself/herself that the borrower has not defaulted willfully, that there is a prima-facie merit in the borrowers claim, if any, that the amount due has been wrongly billed to him, and that the character and integrity of the borrower are beyond doubt. Facts considered for approval of the deviation should be recorded in the loan approval note. Overdue amount above Rs.10,000/For loans sanctioned by RACPC and other CPCs AGM of the CPC For loans sanctioned at branches AGM(RBO) For loans sanctioned by Committees - sanctioning authority 6. Enquiries: CIBIL report is real time. Therefore Enquiries: section of the report comes handy for ascertaining the number of lenders with whom the borrower is talking about different credit facilities. Extra precaution may be exercised in cases where more than 2 enquiries of the same product and same amount are observed within a space of last 1 month. In such cases one more report may be pulled out

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prior to disbursement and status of those enquiries may be ascertained from the borrower. 7. CIBIL TransUnion Score(s): Score predicts the likelihood of 91+ days delinquency on one or more loans in the next twelve months. It is a number between 300 and 900, the higher the numerical value of the score, lower is the risk profile of the individual. Scores higher than 800 indicate low risk, and score less than 600 indicates high risk. Individuals who do not have any loan record in CIBIL database are assigned a default score of -1, whereas a score of zero is assigned to the individuals with less than six (6) months of credit history. Though we are not presently using CIBIL TransUnion Credit Score for the purpose of assessment of loan application in the Bank, it may be used by the operating functionaries for the purpose of taking decisions in borderline cases. Credit decisions in the case of applicants with scores less than 600 should be made by observing more caution. (Circular No. PBBU/HL/PM/30 dated 6th November, 2010) 34. Salient features of the scoring models A. There are certain assumptions in the scoring models. It is presumed that the minimum eligibility criteria have been adhered to and therefore, the scoring models do not fix any hurdles rates for such criteria. For example, no upper age limit is fixed as a hurdle rate in the scores, as it is presumed that loan would not be granted to persons beyond the upper age limit prescribed or would only be given after obtaining approval for deviation. The score range is split into multiple score ranges on a 10 grade scale, each corresponding to a credit grade, with grade 1 being the best and grade 10 being the worst in terms of credit behaviour .Credit scores falling into the same credit score range are to be treated at par. The credit grades corresponding to higher scores are indicative of better credit behaviour and vice versa. The scoring models will serve as a credit decision-making tool and will strengthen the existing system of sanction or rejection of loan applications. While proposals which fall in the top score range would be sanctioned, those falling in the bottom range would require to be declined. However, the Circle Management Committee (CMC) would have the power to override this in exceptional cases. For proposals falling in the intermediate range, the proposals may be considered after credit enhancement,(e.g., by selecting the mode of repayment which carries higher scores, improving Loan amount to Value ratio or Net worth to Loan amount ratio etc.) which would improve the overall scores and thereby take the scores into clear sanction range. Otherwise, the proposals would require to be sanctioned by the next higher authority.

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B. The scoring models will be implemented through the Loan Origination Software (LOS). Since LOS has now been rolled out in all the Circles, it is necessary that all RACPCs/RASMECCs shift to the LOS and the scoring models be put into use. The software vendor has been mandated to incorporate the features in the LOS. No loans may be sanctioned without application of the Scoring Models. C. The models will not be used for differentiation in pricing for now, but will be considered after acquiring some experiences and based on feedbacks obtained from the operating units. The models will be reviewed after six months based on our experience. D. In regard to Education Loan, since the scheme has been drawn up as per IBA Model Education Loan Scheme, loan applications conforming to the terms of the loan scheme cannot be declined based on cut off scores. Therefore, the scoring model will not be used for decision making but will be applied only for determining regulatory capital requirements under Basel II.The credit scores will only be indicative and will be used for post acquisition monitoring tool. E. The existing score cards for Car loan and Personal loan will cease to be applicable hereafter. CAR LOAN SCORING MODEL Sl. No Parameter 1 Relationship with Bank. No Relation Short term Long Term Highest Educational Qualification < HSC HSC Diploma Degree Post Graduate Doctorate Employer Type Pensioner Businessman Unlisted Pvt Listed Pvt 34 Max. Score for the parameter 8 1 1 8 6 1 2 2 4 6 6 13 1 1 0 13 Scores assigned to subparameters

Self Employed Professional MNC Central / State Govts / PSU 4 EMI / Monthly Income 0. 0.1 0.1 0.2 0.2 0.3 0.3 0.4 0.4 0.5 > = 0.5 Net worth / Loan amount 01 12 2 10 > = 10 20

13 7 13

12 16 20 9 4 1 15 1 7 11 15

Loan Amount / Value of vehicle 0 0.5 0.5 0.7 0.7 0.8 0.8 1.1 > = 1.1 Annual Income ( lacs) <1 12 23 35 57 >=7 TOTAL

18 18 15 8 7 4 20 1 7 14 20 18 18 100

35

Cut-off scores proposed: Score ranges > 90 81 90 76 80 66 75 56 65 46 55 36 45 21 35 16 20 Credit Grades Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8 Grade 9 Lending decision Clear sanction May be considered a)after credit enhancements or b) application to be referred to next higher authority Decline

Description of Parameters used in Car loan scoring model: 1. Relationship with Bank. This variable measures the quality and duration of relationship between the applicant and the bank. Long Term If the applicant has an advances or deposit relationship with the Bank for 3 years or more Short Term If the applicant has an advances or deposit relationship with the Bank for greater than or equal to 1 year but less than 3 years No Relationship If the applicant has an advances or deposit relationship with the Bank for less than 1 year or if the applicant does not have any previous relationship with the Bank 2. Highest Educational Qualification This variable takes into account the educational background of the applicant and he or she may fall into one of the following categories. < HSC If the applicant has not passed the 12th Grade examination HSC If the applicants highest academic qualification is 12th Grade Diploma If the applicants highest academic qualification is Diploma Degree If the applicants highest academic qualification is Bachelors Degree (Graduate) Post Graduate If the applicants highest academic qualification is Masters Degree (Post Graduation) Doctorate If the applicants highest academic qualification is Doctorate or higher (PhD) 36

3. Employer Type This variable takes into account the employment details of the applicant. Pensioner If the applicant has retired and his chief source of income is pension money Businessman If the applicant runs his own business (proprietorship or partnership) Unlisted Pvt If the applicant is a salaried employee in a private unlisted firm Listed Pvt If the applicant is a salaried employee of a private listed firm Self Employed If the applicant runs his own practice (lawyers, doctors, Professional chartered accountants, architects, etc with their own practices) If the applicant is employed by a Multinational MNC Company (a firm with significant presence in more than one country) Central / State Govt. / If the applicant is a salaried employee of a Govt.agency PSU or a Public Sector Undertaking 4. EMI to Monthly Income Ratio The monthly income is calculated as the monthly take home income from the primary source of income only after deducting taxes, PF contribution, etc. < 0.1 0.1 0.2 0.2 0.3 0.3 0.4 0.4 0.5 > = 0.5 If the EMI is less than 10 % of monthly income If the EMI is equal to or greater than 10 % but less than 20 % of the monthly income If the EMI is equal to or greater than 20 % but less than 30 % of the monthly income If the EMI is equal to or greater than 30 % but less than 40 % of the monthly income If the EMI is equal to or greater than 40 % but less than 50 % of the monthly income If the EMI is equal to or greater than 50 %

5. Net Worth to Loan Amount Ratio The Net worth of the applicant is calculated as the difference of his net assets and liabilities, the car being purchased should not be added to the assets and the loan amount being requested should not be added to liabilities. <1 12 If net worth is less than loan amount If net worth is equal to or greater than the loan amount but less than two times the loan amount 37

2 10 > = 10

If net worth is greater than or equal to two times the loan amount but less than ten times the loan amount If net worth is equal to or greater than ten times the loan amount

6. Loan Amount to Value of Vehicle Ratio This variable is calculated as the ratio of the loan amount to value of vehicle being bought. 0 0.5 If the loan amount is less than 50 % of the value of the vehicle being purchased 0.5 0.7 If the loan amount is greater than or equal to 50 % but less than 70 % of the value of the vehicle being purchased 0.7 0.8 If the loan amount is greater than or equal to 70 % but less than 80 % of the value of the vehicle being purchased 0.8 1.1 If the loan amount is greater than or equal to 80 % but less than 110 % of the value of the vehicle being purchased > = 1.1 If the loan amount is greater than or equal to 110 % of the value of vehicle being purchased 7. Annual Income The annual income is to be calculated as the yearly take home income from the primary source of income only after deducting taxes, PF contribution, etc. < 1 lac If the annual income is less than Rs.100000/1 lac 2 lac If the annual income is greater than or equal to Rs.100000/- but less than Rs.200000/2 lac 3 lac If the annual income is greater than or equal to Rs.200000/- but less than Rs.300000/3 lac 5 lac If the annual income is greater than or equal to Rs.300000/- but less than Rs.500000/5 lac 7 lac If the annual income is greater than or equal to Rs.500000/- but less than Rs.700000/> = 7 lac If the annual income is greater than or equal to Rs.700000/(Circular No. PBBU/RSM/1 dated 23.06.10) F. The Retail Scoring Models for Loans under the Personal Banking Segment were rolled out a few days ago. We understand from RACPCs that when the Scoring Models are applied, about 40% of the loans fall in the indeterminate category, and consequently, loans which would have been sanctioned by the RACPCs earlier are now required to be referred to the Network Credit Committee, thereby delaying 38

the sanction process. In a number of cases, proposals are also returned to the sales team for credit enhancements. RACPCs are also not clear about the reasons for which the proposals are put up to the next higher authority for sanction. Also, in case of AGM branches at district headquarter centres, which are not linked to the RACPCs, the proposals would have to go to the Network Credit Committee. Moreover, questions have been raised as to whether proof of factors taken into consideration for scoring should be on record, e.g. Post Graduation Certificate for giving relevant scores etc. 2. Keeping the above observations in view, we would like to clarify as under: The scoring models have been developed as a risk mitigation tool which will later be used for customer differentiation either from pricing angle or from the angle of giving preference by way of preapproved loans, cross selling etc. Therefore, the requirement to meet the scores should not delay proposals, increase TAT or put the customer into trouble. There is no need for obtaining documentary proof for the factors reckoned, such as educational qualification, No. of dependents etc. The statement of the applicant should suffice. No additional documents other than those stipulated in the respective lending schemes should be demanded because of application of the scoring models. The sales teams need to be educated on scoring models so that all possible credit enhancements are done before the proposals are sent to the RACPCs. Proposals falling within the powers of AGM headed outfits would continue to be sanctioned by the AGM and not be sent to the next higher authority. As the proposal will in any case be reported to the next higher authority, the fact that the score is in the indeterminate range and has been sanctioned should be recorded. This arrangement will, however, be reviewed after two months. (Circular No. PBBU/RSM/ 310 dated July 17, 2010)

G. As we move ahead with implementation of the scoring models and gain more experience, valuable feedback/suggestions on various issues concerning the scoring models and their impacts have been provided by the Circles. We would appreciate if more feedbacks are provided by the Circles with a view to making the system more responsive and robust.

39

2. We reiterate that no loans should be sanctioned without application of the scoring models. Please note that Car Loan and Home Loan scoring models have been placed in the LOS and all applications should be processed through the LOS only. In respect of Personal Loan and Two-wheeler Loan, scoring may be applied using Excel sheet till such time scoring models for such schemes are ready for integration into the LOS. Education Loan scoring model will also be integrated into the LOS but will not be a tool for sanction as advised earlier in our circular referred to above. 3. Several process advantages of implementing the scoring model include: a. Fast pre-screening based on model criteria. b. Scoring is automated. c. In respect of 80% to 90 % of the applications credit decision will be automatic as per the score leading to a much quicker turnaround time(hence the need to mitigate risks at sourcing stage) d. Grow volume in the most profitable segments. e. Maximize return on capital and reduce loan losses significantly by acquiring better quality loans. f. Facilitate risk-based pricing. g. Give a fillip to the sales team/operating staff. No sales/operating staff will be held accountable for losses on account of credit risk so long as credit guidelines/credit scores are followed. h. Better understanding of factors influencing default in the market. i. Retain and attract mass affluent customers through attractive, unbeatable value proposition that we have. j. Implement global standards in lending.

k. Adopt systematic risk driven strategy to target higher business volumes. 4. Keeping in view the observations and feedback received from the Circles, we would like to advise as under: The scoring models have been developed by CRISIL on Banks behalf based on historical data over the last few years. The models have been constructed using statistical techniques on customer data collected from all the Circles on data collection template. The model development considered various parameters using sampling techniques and a final model has been constructed. Several statistical techniques were used for analyzing and selecting the appropriate parameters for use in the scoring models. The scores assigned to the 40

parameters have also been arrived at using statistical methods such as logistic regression technique. The same parameter could carry different weights for different loans based on the impact it has. Extraneous factors like New Business booked, Takeover business etc. Cannot be factored into the system. These factors may be reckoned while considering sanction. The definition of Check off in the scoring models may be taken as in the Risk Scoring Model circular only. This will be in slight variation with the Home Loan circular No. NBG/PBU/HL Home Loan/12/2010 11 dated the 1st July, 2010.This decision is based on risk parameters. In respect of multiple borrowers, the age, educational qualification, relationship with Bank, employer type, stability of income and no. Of dependents will be that of the primary borrower. However, for purpose of credit enhancements, monthly income and net worth of all the borrowers combined will be considered. Guarantor has no significance in the scoring model. However, it can be considered for decision taking. It can be a positive factor while considering deviation cases. The scoring models do not, in any way, alter or modify the terms and conditions (eligibility criteria) prescribed for the lending schemes. No additional documents other than those stipulated by the respective lending schemes should be demanded because of application of the scoring models. The model grades the borrower by assigning scores to certain pre-determined parameters of the borrower. Proposals that fall into the indeterminate category may be put up to the next higher authority for administrative clearance, and then sanctioned by the appropriate sanctioning authority after obtaining approval. This is required to bring into focus the fact that the proposals fall in a slightly riskier category and sourcing should strengthen the quality of proposals. No accountability will devolve on the sanctioning authority on account of credit risk for sanctioning proposals which fall into the indeterminate category after the administrative approval. However, reasons for recommending approval for deviations to the next higher authority should be clearly recorded. If, therefore, a judicious decision is taken to sanction the loan, there would be no issue of accountability pertaining to these deviations recommended. We are receiving feedback that proposals in this category are being rejected, which is 41

not the purpose of the model. Measures to increase the score such as improving the LTV ratio and co-opting earning family members as joint borrowers may be taken at the sourcing stage as substantial marks are lost on account of high LTV ratio and low net annual income and larger number of dependents. Otherwise, so long as the loan satisfies our norms, and is in order, it may be referred to the next higher authority for approval. In respect of AGM headed outfits, our instruction contained in our letter No.PBBU/RSM/310 dated the 17th July, 2010 will continue to apply. The scoring models would not be applied to Staff loans. The scoring model does not do away with the requirement of CIBIL reference. On analysis of some of the live applications sourced at major centres, it was observed that most of the proposals did not satisfy the minimum eligibility criteria prescribed for the loan scheme and therefore would not have been eligible for sanction even without application of the scoring model. For example, in the following Home Loan proposals, the loan value is greater than the security value (Home Loan scheme prescribes a minimum LTV ratio of 85%): Case No.1 Loan amount : Rs.3.20 lac Property value : Rs.2.00 lac Loan amount cannot be greater than 85% of the property value. Rejected by the Model Loan amount cannot be greater than 85% of the property value. Rejected by the Model Loan amount cannot be greater than 85% of the property value. Rejected by the Model Loan amount cannot be greater than 85% of the property value. Classified as Risk Grade 6

Case No.2

Loan amount Rs.8.00 lac Property value : Rs.6.00 lac

Case No.3

Loan amount : Rs.4.00 lac Property value :Rs.4.00 lac

Case No.4

Loan amount : Rs.5.88 lac Property value: Rs.6.00 lac Level of funding :98%

42

Case No.5

Loan amount : Rs.7.00 lac Property value : Rs.6.00 lac

Case No.6

Loan amount :Rs4.35 lac EMI/NMI ratio 98%

Loan amount cannot be greater than 85% of the property value. Classified as Risk Grade 6 EMI : Rs.15265/NMI: Rs.15539/EMI/NMI ratio cannot exceed 30% Rejected by the Model

Such proposals, in any case, would not have gone through the LOS without raising deviations. The fact that a large proportion of applications sourced by the sales team falls in the indeterminate category suggests that many of the proposals are in the higher risk category. Therefore, there is an imperative need to educate the sales team with a view to improving the quality of proposals. (Circular No. PBBU/RSM/ 319 dated August 11, 2010) H. The Retail Scoring Models have begun to be used by circles and RACPCs, RCPCs and branches have started applying scoring models. Also, Gyanshalas are being conducted in Circles to sensitize operating staff regarding the Retail Scoring Models, its need and the need for bringing in better quality proposals.

2. Further, it has been advised through Corporate Centre letter no. PBBU/RSM/310 dated 17th July, 2010 that the scoring models are only risk mitigation tools, therefore, the requirement to meet the scores should not delay proposals, increase TAT or put customers into trouble. In this letter we have also instructed the Circles that proposals where the scores fall in indeterminate category range that proposals falling within the powers of AGM headed outfits are to be sanctioned without waiting for administrative approval of next higher authority and control return to be sent specifically mentioning that the account falls in indeterminate category. We have come across similar problems in RCPCs where proposals having score within the indeterminate range, which were otherwise to be sanctioned by the heads of RCPCs are now required to be forwarded to next higher authority for clearance. In this process, either there is a delay in loan sanctioning or some amount of business is lost to other banks/financial institutions. 3. Keeping the above observations in view, we would like to clarify as under:-

43

(a) The scoring models have been developed as a risk mitigation tool which will later be used as customer differentiation tool either from pricing angle or from angle of giving preference by way of pre-approved loans, cross selling etc. The requirement of scores should not delay proposals, increase TAT or put customer to more trouble. (b) Proposals that fall into the Indeterminate category at RCPCs, may be continued to be sanctioned and put up to the Assistant General Manager of the Region for control clearly indicating that the loan was in the indeterminate category. (c) The sales teams need to be educated on scoring models so that all possible enhancements are done before the proposals are sent to RCPCs. (d) This arrangement will be reviewed after two months i.e. by end of October 10. (Circular No. PBBU/RSM/325 dated September3, 2010)

44

Annexure-Car I

45

46

47

48

49

50

51

52

To be taken separately if the 2nd applicant is also employed Annexure-Car- II ______________________________ ______________________________ (Address of the disbursing authority) IRREVOCABLE LETTER OF AUTHORITY State Bank of Indias *(Name of the Scheme). Employee No...Designation Dear Sir/Madam, I, .. am an employee of your organisation. The State Bank of India,..Branch, have agreed to sanction a loan of Rs. (Rupees .. only) to me under their captioned scheme for purchase of.. 2. (a) I hereby authorise you to recover by deduction from my salary payable to me by you, a sum of Rs. (Rupees only), every month, beginning from the month of.representing the monthly instalment payable by me to the State Bank of India .. Branch, for the aforesaid loan and remit the amount to the aforesaid branch of the Bank. (b) I hereby authorise you to credit/continue to credit my salary to State Bank of India ... Branch, payable to me by you every month, since the monthly instalments for repayment of the aforesaid loan are to be recovered by the..Branch of the SBI by debit to my savings Bank/Current Account No..with them, in accordance with an undertaking furnished by me to the Bank. 3. In case of my death, retirement, resignation or discontinuing the service for any reason, I hereby authorise you to pay an amount payable on my account including amount payable by way of terminal benefits like P.F. and gratuity by reason aforesaid, to State Bank of India,.. Branch, towards the balance outstanding in the aforesaid loan account together with interest costs and /or any monies as may be due to the Bank in respect of the aforesaid loan. 53

4. I hereby agree that I shall not be entitled to withdraw or revoke this authority even in case of my transfer, or otherwise, until the whole of my debt inclusive of interest etc. to the State Bank of India ... Branch is liquidated, and written consent of the Bank is obtained. Yours faithfully, Witness: Signature. Signature Full NameFull Name Designation. Designation Branch Branch/Dept. Date Date .. Note: Delete 2(a) or 2(b) whichever is not applicable.

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To be taken separately if the 2nd applicant is also employed Annexure-Car- III FOR CAR LOAN The Branch Manager, State Bank of India, .. Dear Sir/Madam, State Bank of Indias scheme of Shri/Smt./Kum. . S/o /D/o /W/o SHRI.. IRREVOCABLE LETTER OF AUTHORITY We certify that Shri/Smt. is a permanent employee of this organisation drawing gross salary of Rs. per month. 2. In view of your agreeing to grant to him/her a loan under the captioned scheme, we have received and noted*: i) The irrevocable letter of authority from the employee, for deducting a sum of Rs.. from his/her salary per month beginning from the salary for the month of .. and remit the same to you for crediting to his loan account till we receive further instructions from you. ii) the irrevocable letter of authority from the employee, for crediting his/her salary every month to his/her account with State Bank of India,.. Branch, till we receive further instructions from you. iii) the irrevocable letter of authority in respect of making payment out of any amount payable to the employee including the amount payable by way of terminal benefits like P.F. and gratuity in case of his/her death, retirement, resignation or discontinuing the service for any reason whatsoever, to State Bank of India, .. Branch, towards the balance outstanding in the aforesaid loan account together with interest etc., and such payment shall be deemed to be a payment to the employee or on his account. 55

iv) the employee agree that he/she will not be entitled to withdraw or revoke his/her authority, even in case of his/her transfer, until the whole of his/her debt inclusive of interest to the State Bank of India, Branch is liquidated and written consent of the Bank is obtained. 3. In the event of transfer of the employee elsewhere, we undertake to convey the instructions to the transferee office under advice to you, immediately.

Place: Date:

Signature of the Officer (Authorised to disburse salary and allowances)

*Note: delete 2(i) or 2(ii) whichever is not applicable.

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Annexure-Car IV Letter from Branch to dealer/supplier To, M/s ___________________ _______________________ _______________________ (Name & Address of the Dealer/Supplier) No. Dear Sir/Madam, Ref: your Performa invoice / letter No. ___________ dated __________for supply of_________________ to Shri / Smt / _______________________________ (1st applicant) Shri / Smt / _______________________________ (2nd applicant) Hereinafter jointly referred to as borrowers. With reference to your Performa invoice/letter no. _______ dated ________, we have today credited your account No. _______ with ______________ (Name of The Bank), ------------- (Name of the Branch)(UTR Number _____________) on behalf of Shri/Smt. ______________________________by Rs._________ (Rupees___________), being the cost of _____________ to be supplied/delivered to Shri/Smt._________________________. Please forward to us your stamped receipt for the amount. The vehicle may be registered in the name of the 1st applicant only. 2. Please note that the amount is to be appropriated specifically towards the purchase prices of the said vehicles. It should not be appropriated by you towards or set off against any other debt or liability due or owing to you by Shri/Smt. _______________________________ (Name of the borrower). Please note that the Bank will have the right to call back the amount if you fail to deliver the vehicle to the above named person against his/her acknowledgement. Date:

57

3. Please advise us the full particulars such as engine number/chassis number/year of manufacture etc. of the vehicle delivered to Shri/Smt. ___________________________________. 4. Shri/Smt. ____________________ and Shri/Smt/ ______________________ have been sanctioned by us a Term Loan of Rs. ______________ jointly for purchase of the vehicle. Please, therefore, ensure that the Hypothecation Charge over the vehicle to be supplied to Shri/Smt.____________________ is registered in favour of State Bank of India, ________________ Branch in the books of Regional Transport Officer. Please arrange to obtain a Certificate from RTO to the effect of having registered our Hypothecation charge, which may be forwarded to us for our record. The relative form signed by the borrower and the Bank for this purpose is forwarded herewith. Yours faithfully, Branch Manager (To be filled in and returned to the Branch by the Dealer supplying the vehicle) Vehicle Make : Date of Delivery :

Engine Number :

Chassis Number :

(Signature of the dealer)

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Annexure-Car V Loancum-Hypothecation Agreement (To be stamped as Deed of Hypothecation and Agreement in accordance with the Stamp Act of the state in which the document is executed. Not to be attested.) The State Bank of India having its Branch Office at (Hereinafter called the Bank which expression shall include its successors and assigns) having at the request of Shri / Smt. / Kum Son / Daughter / Wife of at present aged around .. and residing at . (hereinafter, called the 1st applicant which expression shall include his/her respective heirs, executors, administrators and assigns) and Shri / Smt. / Kum Son / Daughter / Wife of at present aged around .. and residing at . (hereinafter, called the 2nd applicant which expression shall include his/her respective heirs, executors, administrators and assigns) hereinafter jointly referred to as borrowers, agreed to grant to the Borrowers a loan of Rs to enable the Borrowers to purchase a 2/4 wheeler vehicle more particularly specified and described in Schedule I hereto ( hereinafter referred to as the vehicle) for his/her personal use as set forth in the Borrowers application dated the . a copy of which is annexed and forms part of this Agreement, such loan to be secured as herein provided. IT IS HEREBY AGREED AS FOLLOWS: 1. The request for grant of the loan by the Borrowers shall be deemed to constitute the basis of this Agreement and the loan advanced/to be advanced by the Bank to the Borrowers. 2. The Borrowers hereby agree that the loan shall, inter alia, be governed by the terms hereof. The Borrowers expressly agree and undertakes to notify the Bank in writing of any circumstance, affecting the correctness of any of the particulars set forth in his application immediately after the occurrence thereof. The Borrowers expressly agree and undertakes that the Loan shall be used exclusively for the purposes set forth in his application and that no change shall be made therein without the written consent of the Bank. The Borrowers agree that the Loan shall be paid by the Bank to an authorized dealer of the vehicle directly against their invoice on receiving 59

3.

4.

5.

information that the vehicle would be delivered to him on payment/within . days of payment. However, in deserving cases where the Borrowers has purchased the vehicle with his own funds, the Bank may provide him loan upto ..% of the cost of the vehicle. The Borrowers shall produce to the Bank the original receipts for having purchased the vehicle and shall hand over photocopy of the said receipt to the Bank for its record. 6. The borrower shall repay to the Bank, the amount of loan and interest thereon in equated monthly installments of Rs.___________ each commencing from the month of _________ 20___ till the entire loan with interest is fully repaid. The equated monthly instalment(s) also includes interest component. The Bank has option to reduce or increase the EMI or extend the repayment period consequent upon changes in interest rates. FIXED RATE Interest on the amount of loan will be applied at the rate of ______ % p.a. at monthly rests, calculated on the highest monthly balance. Further, in the event of major volatility in interest rate or the fixed rate falling below the Base Rate stipulated by the Bank from time to time or for any other reason whatsoever during the period of this agreement, the Bank may at its sole discretion alter the rate of interest suitably. Bank shall be the sole judge to determine whether such conditions exist or not. (To be deleted where floating /Special rate of interest is applicable) FLOATING RATE The applicable interest on the loan amount will be at the rate of ____% margin above the Base Rate which is presently ___% p.a. and thus the present effective rate of interest being ____% p.a. calculated on the daily balance of the loan amount at monthly rests. However, interest on the loan amount will be applied at Base Rate + ____% margin* (discount of ___%), which is presently ____% p.a. for the first year and Base Rate + ____% margin* (discount of ___%), which is presently ___% p.a. for the second and third year. At the end of the third year, the borrower(s) shall be liable to pay floating rate of interest comprising of the Base Rate and Margin then prevailing as may be determined by the Bank. Provided that the Bank shall at all time, and from time to time, be entitled to vary the Discount, Margin and the Base Rate at its discretion. Depending on the variation of Base Rate, Margin and the Discount, the effective rate of interest shall vary periodically and the borrower(s) shall be liable to pay the effective rate of interest. (To be deleted where fixed / Special rate of interest is applicable)

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* Means net Margin i.e. (Margin Discount). FIXED AND FLOATING RATE (SPECIAL INTEREST RATE) Interest on the loan amount will be charged at _____ % p.a. (Fixed) for the first year and _______ % p.a. for the second and third year at monthly rests, calculated on the monthly highest balance . In the event of major volatility in interest rate or the fixed rate falling below the Base Rate stipulated by the Bank from time to time or for any other reason whatsoever during the period of this agreement, the Bank may at its sole discretion alter the rate of interest suitably. Bank shall be the sole judge to determine whether such conditions exist or not. At the end of 3rd year, the borrower(s) shall be liable to pay floating rate of interest comprising of Base Rate then prevailing (as may be determined by the Bank) and Margin of ____ % calculated on daily balance of the loan amount at monthly rests. Provided that the Bank shall at any time, and from time to time be entitled to vary the margin and the base rate at its discretion. Depending on variation of Base Rate and Margin, the effective rate of interest shall vary periodically and the borrower shall be liable to pay the effective rate of interest. (To be deleted where fixed / floating rate of interest is applicable) Such revised rate of interest shall always be construed as agreed to be paid by the borrower(s) and hereby secured. Borrower(s) shall be deemed to have notice of change in the rate of interest when the changes are notified at/displayed at the branch or published in a newspaper or in the website of the Bank or made through the entry in the passbook or the statement of account or by debit to the loan account. Without prejudice to the Banks other rights and remedies, the Bank shall be entitled to charge at its own discretion such enhanced rate of interest on the loan account(s) either on the entire outstandings or on a portion thereof as it may fix for any default or irregularity on the part of the borrower(s) which in the opinion of the Bank warrants charging of such enhanced rates of interest for such period as the Bank may deem fit. Besides, the Bank shall also charge a penalty, the rate of which shall be at the discretion of the Bank, for every bounced cheque for any reason whatsoever in addition to the enhanced rate of interest as applicable.

6.(a)

Further, the Bank shall, at any time, be entitled to give notice to the Borrowers of its intention to charge and may thereafter charge interest at such higher rate than the rate hereinbefore mentioned, as the Bank may 61

specify. The Equated Monthly Instalments will have to be paid till the entire loan and the interest is fully repaid. Further, the amount of Equated Monthly Instalment may change/increase as may be decided by the Bank. 7. On demand the Borrowers agree to deliver to the Bank post-dated cheques for the monthly instalments and the Borrowers warrants that the cheques will be honoured on first presentation. Any non-presentation of a cheque due to any reason will not affect the liability of the Borrowers to pay the monthly instalments or any other sum. The Borrowers agree to forthwith replace the cheques/issue fresh cheques, if required by the Bank. The Borrowers shall not be entitled to call upon the Bank to refrain from presenting any cheque for payment and if the Borrowers does so, the Bank shall nevertheless be entitled to present the cheque for payment and in the event of dishonour the provisions under Chapter XVII of the Negotiable Instruments Act, 1881, shall apply. As security for the repayment of Loan together with interest at the rates stipulated above and any other charges, costs and expenses payable to or incurred by the Bank in relation thereto, the Borrowers hereby creates a first charge in favour of the Bank by way of hypothecation of the vehicle together with all its components, accessories, attachments etc. specified and described in the Schedule below, purchased/to be purchased by the Borrowers with the Loan wherever it shall be kept. The borrowers hereby agree that the vehicle shall be registered in the name of 1st applicant only. The Borrowers shall not during the continuance of this security create any charge or encumbrance of any kind over the hypothecated vehicle nor shall dispose of the same without repaying in full the Loan amount, interest, costs, charges and expenses secured here under.

8.

9.

10.(a) The Borrowers shall keep the hypothecated articles in good working order, repair and condition and shall permit the officers and other persons deputed by the Bank to have access to and inspection of it if required by the Bank. 10.(b) In case of hypothecation of vehicles the Banks charge shall be registered with appropriate Road Transport authority and the Borrowers undertakes to get such hypothecation to the Bank marked in Registration book of the vehicle immediately after purchase of the vehicle. 11. The Borrowers will intimate immediately after purchase of the vehicle the location where the vehicle will be garaged. Any change in address/location of the garage will be intimated forthwith.

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12.

The Bank its agents and nominees shall be entitled at all times to enter any place where the hypothecated vehicle is garaged, and on the occurrence of either of (i) default in payment of more than one instalments of bouncing of more than one post dated cheques, or (ii) any other event which in the opinion of the Bank will adversely affect the security available to the Bank, they will be authorized to take possession of/seize the vehicle and eventually sell it off in auction/private treaty for satisfaction of the Banks dues. The Bank shall be entitled at all times to apply any other money or moneys in its hand stand to the credit of or belonging to the Borrowers in or towards payment of any amount for the time being payable to the Bank and recover at any time from the Borrowers by suit or otherwise the balance remaining payable to the Bank. The Bank also preserves the right to note lien on other deposits of the Borrowers as additional security for the loan.

13.

Where ever a vehicle has been purchased out of the aforesaid loan, the Borrowers shall keep the vehicle comprehensively insured in his/her name with an Insurance Company approved by the Bank for the market value or to the extent of at least 10% over the loan amount outstanding, whichever is higher and the Banks interest as a hypothecatee should be noted in the certificate of insurance and the insurance policy. The Borrowers shall produce to the Bank from time to time relevant Policy or Policies for its inspection and also proper evidence to the satisfaction of the Bank and the Borrowers hereby undertakes punctually to pay the premium due for such insurance and to produce the receipts for the premium paid to the Bank for its inspection from time to time and if the Borrowers should fail to keep insured the said vehicle or to produce such policy or policies and receipts to the Bank on demand, the Bank shall be at liberty but not bound to effect such insurance and pay such premium at the expense of the Borrowers and all expenses to be incurred by the Bank in this connection will be made by debit to the Borrowers loan account and will form part of the Borrowers indebtedness to the Bank and secured fully by the hypothecation hereby created. The Borrowers agree that any such sum received under any such insurance shall be applied in or towards liquidation of the amount due to the Bank on account of the said Loan interest and other charges as aforesaid and in the event of there being a surplus the same shall be refunded to the Borrowers.

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13(a) The borrower (s) hereby further agree that as precondition of the loan advances given to me/us by the Bank, that in case of default in repayment of the loan /advances or in the repayment of the interest thereon or any of the agreed instalment of the loan on due date/s, the Bank and/or the Reserve Bank of India will have an unqualified right to disclose or publish my/our name(s) as defaulter in such manner and through such medium as the Bank or Reserve Bank of India in their absolute discretion may think fit. 13 (b) The borrowers hereby agree and give consent for disclosure by the Bank all or any (a) information and data relating to the borrower/s (b) information or data relating to any credit facility availed or/to be availed by the borrower/s and default, if any, committed by the borrower/s in discharge of his/their such obligation as the Bank may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau (India) Ltd., and any other agency authorized in this behalf by RBI. Further, the borrower/s declare that the information and data furnished by him/them to the Bank are true and correct and also agree that the Credit Information Bureau (India) Ltd. and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them and further that the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them to Banks/Financial Institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf. 14. The Borrowers agree that if any instalment due hereunder shall not be paid on due date in the manner set out in clause 6/7 here in above the agreement of the Bank to accept repayment of the said loan by instalments shall at the option of Bank forthwith determine and the whole balance of the said loan unpaid at the date of such default shall immediately thereupon become payable to the Bank. This Agreement shall operate as a continuing security for all monies, indebtedness and liabilities aforesaid due by the Borrowers to the Bank. It is agreed between the parties that at the written request of the Borrowers the Bank may transfer the account to any of the branches within India from time to time provided sufficient notice in advance is given by the Borrowers to the Bank. The Bank shall also be entitled to transfer the loan account to any other branch of the Bank after due notice to the Borrowers.

15.

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16.

Nothing contained in this Agreement shall be construed as excluding the general lien of the Bank for any balance due to the Bank of any account or in respect of any liability of the Borrowers to the Bank. Nothing herein contained shall prejudice any rights or remedies of the Bank in respect of any other present or future security guarantee obligation or decree for any indebtedness or liability of the Borrowers to the Bank.

17.

SCHEDULE REFERRED TO ABOVE (Details of article(s) /vehicle to be purchased) (I) __________________________

(2)

__________________________

Dated this .. day of 200

(BORROWERS)

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Annexure- Car VI Guarantee Agreement (To be stamped as an agreement in accordance with the Stamp Act in the State in which this document is executed. Not to be attested.)

STATE BANK OF INDIA, Dear Sir/Madam,

Place Date.

In consideration of the State Bank of India (hereinafter referred to as Bank) having agreed to grant/granted at my / our request and advance of Rs (Rupees only) by way of loan to Shri/Smt /Kum..son of/wife of/daughter of Shri.. (hereinafter referred to as the Borrower) for . (purpose of loan) under the Banks Scheme. I/We hereby guarantee repayment of all moneys at any time payable by the Borrower to the Bank in respect of the loan made to the Borrower with interest thereon and the due performance and observance by the Borrower of the terms pertaining to the loan and the payment of all costs and expenses incurred by the Bank in relation thereto and I /We also agree to pay and make good to the Bank on demand all losses, cost, damages and expenses occasioned to the bank by reason of non-payment of the said moneys ,costs and expenses or any part thereof or the breach ,non-performance or nonobservance of any of the terms as aforesaid .subject to the terms and conditions hereinafter contained : That my/our liability under this guarantee is co-extensive with that of the Borrower as if I/we were the principal debtor(s) of the Bank and the amount due under this agreement will be recoverable from me /us without any recourse to the Borrower and it shall not be obligatory on the bank to call upon the Borrower to pay the amount first or to take any action against the Borrower before enforcing the guarantee against me /us nor shall it be necessary for the Bank to join the Borrower in any suit against me/us . I/we further agree that I/we shall not terminate the guarantee and/or any other of the undertakings contained herein unless a sufficient notice of the intention on my/our part to terminate the guarantee had been given to the Bank and a reasonable time is allowed to lapse thereafter for such 66

termination to take effect. Provided, if the Bank deems it necessary to terminate the guarantee only after the satisfaction of it dues by the Borrower the guarantee will terminate only when the Bank intimates to me/us in writing that Borrower, has paid in full all the dues to the Bank. I /we further agree that the guarantee given hereunder is enforceable notwithstanding any dispute or any suit that may be pending between the Bank and the Borrower. 2. That the guarantee given hereunder shall be continuing one notwithstanding that any of the account(s) opened in respect of the loan may at any time or from time to time be brought to credit /nil until notice in writing that the same is /are closed is given by the Bank to me/us. That on demand being made by the Bank for the payment of any amount under this guarantee the same shall be paid without demur or protest by me /us and the notice for the claim sent to me /us shall be conclusive of the amount due from me /us under the terms of the guarantee. The Bank shall be at liberty and without the consent or knowledge of me/us at any time or from time to time to grant to the Borrower or any person liable for him any time or indulgence and to determine enlarge or vary the amount of the loans and advances to take or not to take and if taken to vary exchange or take other security or release or part with any securities held or to be held by the Bank for or on account of the loans and advances or any part thereof and to compound or make any other arrangement with the Borrower or any person so liable with or for the Borrower without releasing or discharging and /or in any manner affecting my/our liability under the guarantee. That the guarantee hereby given is independent and distinct from any security that the Bank has taken or may take in any manner whatsoever whether it be by way of hypothecation, pledge and /or mortgage and /or any other charge over goods, book-debts, movables and other assets and/or any other property movable or immovable and that I/We have not given the guarantee upon any understanding, faith or belief that the Bank has taken and /or may hereafter take any or other such security and that notwithstanding the provisions of Sections 140 and 141 of the Contract Act. 1872 or any other provision of that Act or any other law, I/We will not claim to be discharged to any extent because of the Bank s failure to take any or other such security or in requiring or obtaining any or other such security or losing or parting with for any reason whatsoever including reasons attributable to its default and negligence benefit of any other such security or any rights to any or other such security that have been or could 67

3.

4.

5.

have been taken and in the event of the Bank so losing or parting with security the guarantor (s) shall be deemed to have consented to acquiesce in the same. 6. That without prejudice to the effect in any manner whatsoever of the foregoing clause. Where the loans and advances are secured or intended to be secured in any manner whatsoever by or over any property movable or immovable whatsoever by way of hypothecation, pledge and /or mortgage of and /or any charge over goods, book-debts, movable and other assets by or under any agreements or letter (s) or otherwise I /We will not be concerned in any manner with any or other such security that the Bank has taken or proposes to take or may take and that the Banks failure in requiring or obtaining any or other such security or in the observance or performance of any of the stipulations or terms contained in any agreements if any or letter(s) and the default of the Bank in requiring or endorsing the observance or performance of any of the said stipulations or terms shall not have the effect of releasing me/us from my/our liability and or of prejudicing the Banks rights or remedies against me /us under the Agreement or otherwise . That the Bank shall be at liberty to take other securities for the loans and advances or any part thereof and to release or forbear to enforce all or any of its remedies upon or under such securities and any collateral security or securities now held by the Bank and that no such release or forbearance as aforesaid shall have the effect of releasing me/us from my/our liability or of prejudicing the Banks rights and remedies against me/us under the terms of the guarantee and that I/We shall have no right to the benefit of any other security that may be held by the Bank until the claim of the Bank against the Borrower in respect of the loans and advances and of all the other claims (if any) of the Bank against the Borrower on any other account whatsoever shall have been fully satisfied and then in so far only as such security shall not have been exhausted for the purpose of realising the amount of the said Banks claims and rateably only with other guarantors or other persons (if any) entitled to the benefit of such securities respectively . That notwithstanding anything contained in Section 133 of the Contract Act or in any other provisions of law I/We will not claim to be discharged to any extent because of the Bank varying any of the terms and conditions whether contained in any Agreement(s) or letter(s) and on which the loan has been made to the Borrower and for this purpose and in particular any excess drawings over and above the sanctioned limit of the loans and advances allowed by the Bank at or without the specific request of the borrower shall not discharge me/us from my/our liability under this guarantee. 68

7.

8.

The Guarantor(s) hereby agree (s) that notwithstanding any variation made in the terms of the Hypothecation Agreement/Agreement* etc. dated Or any other Agreement or letter inter alia including variation in the rate of interest, extending the date of payment of the instalments and on which the loan has been made or any composition made between the Bank and the Borrower or any agreement on the part of the Bank to give time to or not to sue the Borrower or the Bank parting with any of the securities given by the borrower the Guarantor(s) shall not be released or discharged of his/their obligations under this Guarantee provided that in the event of any such variation or composition or agreement the liability of the Guarantor(s) shall notwithstanding anything herein contained be deemed to have accrued and the Guarantor(s) shall be deemed to have become liable, hereunder on the date or dates on which the Borrower shall become liable to pay the amount/amounts due under the above referred to Agreements as a result of such variation or composition or agreement. (* Delete whichever is not applicable.)

9.(a)

That if the Borrower shall become insolvent, bankrupt or makes any arrangement or composition with creditors the Bank (notwithstanding payment to the Bank by me/us or any other person of the whole or any part of the amount hereby secured) rank as creditor and may prove against the estate of the borrower for the full amount of all the banks claims against the borrower or agree to and accept any composition in respect thereof and the Bank may receive and retain the whole of the dividends, compensation or other payments thereof to the exclusion of all my/our rights as guarantor(s) for the Borrower in competition with the Bank until all the Banks claims are fully satisfied and I/We will not be paying off the amount payable by me/us or any part thereof or otherwise prove or claim against the estate of the Borrower until the whole of the Banks claims against the Borrower, in respect of all the liabilities whatsoever have been satisfied and the Bank may enforce and recover payment from me/us of the full amount payable by me/us notwithstanding any such proof or composition as aforesaid. The guarantor shall not stand discharged by transfer of the loan account of the Borrower from one branch to another and such transfer of the account shall not be deemed as a variation of the terms of the contract. The guarantor(s) hereby agree and give consent for disclosure by the Bank all or any (a) information and data relating to the guarantor(s) (b) information or data relating to any credit facility availed or/to be availed by the guarantor(s) and default, if any, committed by the guarantor(s) in discharge of his/their such obligation as the Bank may deem appropriate 69

9.(b)

10.

and necessary, to disclose and furnish to Credit Information Bureau (India) Ltd., and any other agency authorized in this behalf by RBI. Further, the guarantor(s) declare that the information and data furnished by him/them to the Bank are true and correct and also agree that the Credit Information Bureau (India) Ltd. and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them and further that the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them to Banks/Financial Institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf. 11. That any notice by way of demand or otherwise may be given by the bank to me/us sending the same by post and addressed to me /us and the notice shall be deemed to have been given at the time when it will be delivered in the ordinary course of post and it will be sufficient in order to prove service of any such notice and to prove that the envelope containing the same was posted and the certificate signed by any officer duly authorised by the Bank in this regard that the envelope was posted, shall constitute such proof. That the guarantee herein contained shall not be determined or affected by the death of the guarantors hereunder but shall in all respects and for all purposes be binding and operative on his/their successor(s), heir(s) and assigns until repayment of all moneys secured by and due to the Bank under the loan granted to the Borrower. We further agree that we shall be jointly and severally liable to the bank for the entire outstanding in respect of the loan and that the Bank shall be at liberty to sue either or any of us in respect of such liability without joining the other or others of us and notwithstanding any decree in any such suit subsequently to sue the other or others of us and to proceed to judgement and execution at the option of the Bank until its claim is fully satisfied.

12.

13.*

Signed and delivered by the said: Shri/Smt.. (Guarantor). Shri/Smt.. (Guarantor). Place: . Date: .. (* Delete whichever not applicable) 70

To be addressed to both 1st and 2nd applicant Annexure-Car VII Arrangement Letter (For financing consumer durables/two wheelers/cars) To, _______________________ _______________________ _______________________ _______________________ (Name & Address of the Borrower) Ref No: Dear Sir/Madam, Personal Segment Advances Loan for purchase of Term Loan of Rs.. With reference to your application dated ., we hereby sanction you a Term Loan of Rs. (Rupees..only) on the following terms and conditions: 1. Purpose: The loan is sanctioned to you . 2. Margin: % for the purpose of purchase of Date

3. RATE OF INTERST FIXED RATE OF INTEREST Interest on the amount of loan will be applied at the rate of ______ % p.a. at monthly rests, calculated on the highest monthly balance. Further, in the event of major volatility in interest rate or the fixed rate falling below the Base Rate stipulated by the Bank from time to time or for any other reason, whatsoever during the period of this agreement, the Bank may at its sole discretion alter the 71

rate of interest suitably. Bank shall be the sole judge to determine whether such conditions exist or not. In the event of a default in payment or any irregularity in the account, the Bank reserves the right to levy a higher rate of interest, as it deems fit. FLOATING RATE OF INTEREST The applicable interest on the loan amount will be at the rate of ____% margin above the Base Rate which is presently ___% p.a. and thus the present effective rate of interest being ____% p.a. calculated on the daily balance of the loan amount at monthly rests. However, interest on the loan amount will be applied at Base Rate + ____% margin* (discount of ___%), which is presently ____% p.a. for the first year and Base Rate + ____% margin* (discount of ___%), which is presently ___% p.a. for the second and third year. At the end of the third year, the borrower(s) shall be liable to pay floating rate of interest comprising of the Base Rate and Margin then prevailing as may be determined by the Bank. Provided that the Bank shall at all time, and from time to time, be entitled to vary the Discount, Margin and the Base Rate at its discretion. Depending on the variation of Base Rate, Margin and the Discount, the effective rate of interest shall vary periodically and the borrower(s) shall be liable to pay the effective rate of interest. * Means net Margin i.e. (Margin Discount). FIXED AND FLOATING RATE (SPECIAL INTEREST RATE) Interest on the loan amount will be applied at _____ % p.a. (Fixed) for the first year and _______ % p.a. for the second and third year at monthly rests, calculated on the monthly highest balance . In the event of major volatility in interest rate or the fixed rate falling below the Base Rate stipulated by the Bank from time to time or for any other reason whatsoever during the period of this agreement, the Bank may at its sole discretion alter the rate of interest suitably. Bank shall be the sole judge to determine whether such conditions exist or not. At the end of 3rd year, you shall be liable to pay floating rate of interest comprising of Base Rate then prevailing (as may be determined by the Bank) and Margin of ____ % calculated on daily balance of the loan amount at monthly rests. Provided that the Bank shall at any time, and from time to time be entitled to vary the margin and the base rate at its discretion. Depending on variation of Base Rate and Margin, the effective rate of interest shall vary periodically and the borrower shall be liable to pay the effective rate of interest. You shall be deemed to have notice of changes in the rate of interest when the changes are notified at/displayed at the branch or published in a newspaper or in the website of the Bank or made through entry in the passbook or the statement of account or by debit to the loan account, etc. and you are liable to 72

pay such revised rate of interest. The Bank has option to reduce or increase the EMI or extend the repayment period consequent upon changes in interest rate. Without prejudice to the Banks other rights and remedies, the Bank shall be entitled to charge at its own discretion such enhanced rate of interest on the loan account(s) either on the entire outstandings or on a portion thereof as it may fix for any default or irregularity on the part of the borrower(s) which in the opinion of the Bank warrants charging of such enhanced rates of interest for such period as the Bank may deem fit. 4. Repayment : The loan is to be repaid in Equated Monthly Instalments of Rs each till the entire loan with the interest is fully repaid. The first instalment commences from the month following the month of purchase of above said article(s)/vehicle. Wherever repayment is through post-dated cheques, the cheques should be dated prior to the 7th of every month. 5. Prepayment Charges: No Prepayment penalty will be charged. 6. Security : The loan will be secured by: a) Hypothecation of the aforesaid two wheeler/car purchased out of the loan amount in favour of the Bank. Noting of Banks hypothecation charge in the Books of the RTO and the Registration Book will be essential in respect of finance for two / four wheeler vehicles. You will also be required to furnish a copy of the Registration Book for Banks record after recording Banks hypothecation charge therein by the RTO. b) Third party guarantee of the spouse.* c) Third party guarantee of..* d) Pledge of securities listed hereunder.*

7. Insurance: The vehicles shall be kept comprehensively insured by you in your name for the market value or at least 10% above the loan amount outstanding, whichever is higher. Banks hypothecation charge is to be noted on the insurance policy and a copy of the policy is to be delivered to the Bank. 73

8. Inspection (for vehicles): The Bank reserves its rights to inspect the vehicle and registration documents at regular intervals. 9. Legal expenses, etc. : All expenses like valuers fees, insurance premia, stamp duty, registration charges and other incidental expenses incurred in connection with the loan are to be borne by you 10. Processing charges: Processing charges of Rs (Rupees . only) are payable immediately. 11. Disbursement: The loan/overdraft amount will be disbursed by means direct to the account of the supplier/dealer after execution of prescribed security documents. Please call on us on any working day to execute the documents. The loan is also subject to other terms and conditions as mentioned in the documents(s) executed/to be executed in connection with the loan/overdraft and as may be prescribed by the Bank from time to time. The duplicate copy of this arrangement letter may please be returned to us duly signed by you and guarantor(s) in token of acceptance of the terms and conditions detailed herein within a period of 45 days from the date of this letter.

Yours faithfully,

Branch Manager (* Delete whichever not applicable) Received the original. Terms and conditions accepted

74

Borrower(s) Date: Terms and conditions accepted Guarantor(s) Date:

(All pages of this Arrangement Letter are required to be stamped and initialled by the Bank. All pages of the copy returned by the borrower are required to be signed by borrower and is to be retained with the document.)

75

To be taken separately if both the 1st and 2nd applicants are employed Annexure-Car VIII The Branch Manager, State Bank of India, .. Branch, Dear Sir/Madam, SCHEMES FOR LOANS FOR PURCHASE OF CAR I have availed the benefit of the aforesaid scheme. At present I am serving as .. (Designation) in . Department at .. I am authorised to draw and disburse my own salary along with the salaries of the employees working in this office/establishment/department. I undertake to deposit my salary supported by the pay bill every month for credit to the Savings Bank Account maintained at your branch till liquidation of the amount advanced to me. I further authorise you to deduct a sum of Rs per month beginning from the salary for the month of . from the aforesaid account for adjustment towards the balance outstanding in the loan account till liquidation. I hereby authorise State Bank of India .. Branch to collect and receive any amount payable to me including amount payable towards Provident Fund, Gratuity, Pension or similar dues on my behalf in the event of my retirement / resignation, termination or discontinuation of my service for any reason whatsoever. I further agree that the aforesaid authority shall be irrevocable till the entire amount of loan together with interest stands liquidated. I further undertake to execute necessary authorisation / documents as deemed just and necessary by the Bank in accordance with the scheme in the event of my ceasing to be drawing and disbursing authority by virtue of my transfer or otherwise. Place: Date: ... SIGNATURE

76

To be addressed to both the applicants in the same Annexure Annexure A Under Certificate of Posting

State Bank of India Branch Shri/Smt./Kum . No. Dear Sir/Madam, YourLoan A/c No..with us Please refer to your above loan account with our Branch. 2. With a view to discourage irregularity/over dues in loan account either on account of non payment of EMI for whatever reason or outstanding in the overdraft account exceeding the drawing power, it has been decided to levy enhanced interest rate (hereinafter referred to as penal rate of interest) at the following rates. If the irregularity exceeds EMI or Installment amount, for a period of one month , then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part installment or part EMI remains overdue, then penal interest should not be levied. 3. Accordingly, we request you to ensure that your loan account(s) with us do not become irregular, for any reason whatsoever. Yours faithfully, Dated :

Branch Manager

77

To be sent to the 1st and 2nd applicant separately Annexure B Under Certificate of Posting

State Bank of India Branch Shri/Smt./Kum .

No.

Dated:

Dear Sir/Madam, YourLoan A/c No..with us Equated Monthly Instalment (EMI) for the month of..in respect of your captioned account, which was due on(date) has not yet been remitted, which resulted in irregularity in your account* Your above overdraft account became irregular on.. (Date)* 2. As you are aware, irregularity in the account attracts a penal interest @ 2% p.a. (over and above applicable rate of Interest) on the overdue amount for the period of default. With a view to avoid penal interest, please arrange to deposit an amount of Rs. (*Amount of EMI/ or irregularity) on or before..(date) failing which penal interest @ 2% p.a. on the overdue amount will be levied, over and above the applicable rate of interest, for the period the account remains irregular.

Yours faithfully,

Branch Manager

* delete whichever is not applicable

78

Annexure-C INTERVIEW FORM FOR CAR FINANCE TO AGRICULTURISTS

1.

Particulars of Applicants a) Name : ____________________________________ Age _________Years & Age : ____________________________________ Age _________Years

b) Address Present : ______________________________________________________ ______________________________________________________ ______________________________________________________ Permanent : ______________________________________________________ ______________________________________________________ ______________________________________________________ Phone (Contact) No. ______________________ (Mandatory) Mobile No: _______________________________ E mail ID. ________________________________ c) Present residence: Rs.__ Owned Parents Rented (if yes): Monthly Rent

d) No. of dependent (family members) : ___________ e) No of earning member:- ___________ (Brief details of Employment)

f) Family Income: Rs. ____________/annum g) Total Lands owned and in possession _______Acres, out of which: i) Presently irrigated ___________Acres ii) Seasonally irrigated ___________Acres iii) Rain fed ___________Acres (Please enclose copy of Khasra / Chitta Adangal (showing cropping pattern), Patta/ khatoni (showing land holding) with photograph. Copy of noting in the Banks Loan column also to be kept) h) Details of earlier loans on cars/tractor owned and repayment track record: 79

i) Full details of deposit connection with the Bank/branch:

j) Present annual net Income from all sources (Complete details are as under :) a) ___________________________________ Rs. _______ b) ___________________________________ Rs. _______ c) ___________________________________ Rs. _______ d) ___________________________________ Rs. _______ Total 2. Description of the Car proposed to be purchased: Company ________________ Model ________________

: Rs. ___________

: Rs. ___________

3.

Estimated cost & loan required (enclose quotation) i) Total cost (including accessories) _________ ii) Less Margin (_____ %) iii) Loan required (i-ii) 4. Expected Net Farm Income (Arrived from Annexure-II)

: Rs.

: Rs. _________ : Rs. _________ : Rs. _________

5. Details of other repayment obligations of borrowers (enclose details separately) i) To the Bank : Rs. __________ ii) To other institutions/ private parties : Rs. __________ Total : Rs.___________ 6. EMI/NMI Ratio : ______

7. Repayment: Loan amount Rs.___________/- to be repaid in (no of)____________________ _________ (Annually/ Half-yearly /Quarterly/ Monthly Equated Instalments (inclusive of interest) of Rs. ______________/- each. 8. Any other relevant information: Signature/ Thumb impressions of Applicant(s).

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Annexure-D Income calculation sheet for arriving at Net Annual Income from Agriculture & Allied Activity.
Cost of Cultiv ation /Acre Rs. @

Season

Cro ps Gro wn

Area in Acre s

Irriga ted

Non Irrigat ed

Total Cost

Yield /Acre

Total Yield (units)

Price/ Unit Rs.

Gross Incom e Rs.

Net Income Rs.

1 2 3 4a 4b (A) Income from Cultivation of Crops. Kharif Rabi Summer/ Long Duration

6 5 (3x5)

8 7 (3x7)

10(8x 9 9)

11(106)

Sub Total (A)

(B) Income from allied activities # Income from Dairy, Poultry etc. Sub Total (B) Total (A+B) $ Generally it would be 180 to 220 % cost of cultivation at col. NO: 6, depending upon the crops cultivated & productivity in the area of operation. # The income should be ascertained depending upon size of unit & record / proof of produces supplied to Co- op society or others purchasers. (Circular letter No. PB/AL/1/ 84 June 18, 2011)

81

SBI CAR LOAN SCHEME FOR USED VEHICLES 1. Purpose: Term Loans are sanctioned by the Bank for purchase of passenger cars, Multi Utility Vehicles (MUVs) and SUVs not more than five years old. However, financing of old vehicles on the basis of duplicate Registration Books will not be entertained 2. Eligibility: Age: 21-65 years. Loan must be fully repaid before the borrower attains the age of 70 years. Loans can be granted by sanctioning authority to individuals who have sufficient, regular and continuous source of income for servicing the loan repayment beyond 65 years. Permanent employees of State/Central Govt., Public Sector Undertakings, corporations, private sector companies, and reputed establishments are eligible under the scheme. Professionals, selfemployed and others who are income tax assessees and persons engaged in agriculture and allied activities can also avail of the loan facility.

2.1

Salaried Persons: Net annual income of applicant and/or co-applicant if any, together to be Rs. 1,00,000/- and above. Net monthly income of applicant(s) should be at least 2 times of EMI

(Clarification: net monthly income will be equivalent to monthly Gross salary net of all statutory deductions like Income Tax and compulsory deductions like Employee Provident Fund etc. No other deductions should be deducted from the monthly Gross Salary to arrive at the NMI. Accordingly, NAI will be 12 times of NMI as defined above.)

82

2.2

Self-employed and Professionals: Net annual income of applicant and/or co-applicant if any, together to be Rs. 1,00,000/- and above for the last year as per income tax return. Net monthly income of applicant(s) should be at least 2 times of EMI

2.3

Persons engaged in agriculture and allied activities: Same as for Selfemployed and Professionals except that income tax return will not be required.

(Clarification: Regular income from all sources can be considered provided the sanctioning authority is satisfied with the proof of income. Income of spouse, father, mother, brother, sister, son and daughter may be included for arriving at the loan eligibility (any one). The person whose income is included will join as a coborrower. The maximum number of applicants should be restricted to two.) 3. Authorised Branches: 3.1 It has been decided by the appropriate authority to authorize All scale III & above branches, all Super Circle of Excellence branches, all PBBs, all District Head Quarter branches, Project Area branches and all Branches authorised by the AGM (RBOs) to process, sanction and disburse car loans till 30.12.2011. (Circular No. PB/AL/1/22 dated 30th August, 2011) The following should be ensured:a. Mapping of these branches to the dealers of different car manufacturers have to be ensured. Number of car loans per branch have to be given as targets and monitored; b. The identified branches have to process the car loan applications through LOS, where in score cards/ CIBIL checks have already been automated; c. The loans will be controlled by the controllers; d. RACPCs will accept the documents from the branches at fortnightly intervals for follow up and maintenance; e. The RC book and the insurance certificate etc will be followed up by the respective RACPCs in BPR centres and by the sanctioning branches in Non BPR centres. (Circular. No. PB/AL/1/33 dated 29th March, 2011) 3.2 The branches other than those mentioned under 3.1 above will source the car loan applications and get them processed and sanctioned through respective CPCs.

83

4. 4.1

Loan Amount: The maximum loan amount that can be granted would be restricted to 30 times the net monthly income of salaried persons (i.e., net of all deductions including actual monthly tax deductions at source). In case of others, maximum loan amount would be 2.5 times the net annual income (i.e., income as per latest income tax return filed less taxes payable). For agriculturists the annual net income should be arrived at by branches, based on the nature of their activity, (i.e., farming, dairy, poultry, orchards) land holding, cropping pattern, yield, etc. and average level of income derived there from in the area. Subject to a maximum of Rs. 15 lacs. Regular income from all sources can be considered provided the sanctioning authority is satisfied with the proof of income. Income of spouse, father, mother, brother and sister may be included for arriving at the loan eligibility (any one). The person whose income is included will join as a co-borrower. The maximum number of applicants should be restricted to two. The loan repayment should be made from the account of the person in whose name the vehicle is registered or through an account with us in the joint names of the borrowers. (PB/AL/1/7 3/11/07) In no case should the EMI/NMI percentage exceed 50%. 4.4.1 EMI will include all EMIs towards existing loans and proposed loan; 4.4.2 The NMI will be equivalent to the Total Gross Income less statutory and compulsory deductions like Income Tax, Employee Provident Fund etc. (PB/AL/1/52 DT 6/08/07 AND CIR 7 3/11/07)

4.2 4.3

4.4

4.5

However, the Branch Manager/RACPC head or the sanctioning authority, where such sanctioning authority is not below the rank of Chief Manager, will have the discretion to grant a higher loan, subject to EMI/NMI percentage not exceeding 60% in case of tie-ups with reputed PSUs/ corporates or institutions or owing to strategic reasons. For customers with NMI of Rs. 10 lac and above, the EMI/NMI ratio may be relaxed up to 70% by sanctioning authority not below the rank of Assistant General Manager. (PB/AL/1/7 dated 3/11/07) Margin: For all Loans margin is 15% 84

4.6

5. 5.1

5.2

The total cost of vehicle is inclusive of one time road tax, octroi, registration, insurance and accessories. Any consumer offer or discounts announced by the manufacturers and dealers should be reduced from the on-road price of the vehicle. The maximum cost of accessories should not exceed 5% of the cost of vehicle or Rs. 25,000/-, whichever is less. The sanctioning authority will have discretion to reduce the margin by 5% where check off facility from a reputed employer is available. He may permit further relaxation in margin upto 5%. Valuation: Certificate of fitness/valuation from a reputed garage would be required which should be retained with the loan documents. The garage should be authorised by the Liaison Officer in the LHO/ZO in big cities. No valuation certificate is required if the car is sold under the Maruti True Value scheme or Automartindia.

5.3

5.4

6. 6.1.

6.2

Branches should ensure that the fitness and valuation is appropriate to the past ownership pattern. Care should be taken to avoid models, which have a low second/third hand demand like Fiat Uno, Daewoo, Matiz, etc. Take Over Of Loans: (iii) Takeover of car loans may be considered selectively where: (e) the vehicle is not more than 2 years old (f) it is a single ownership vehicle (g) no insurance claim has been availed and (h) the account of the borrower with the other bank is a Standard Asset i.e. all repayments have been made as per terms of sanction of the original financier. The loan should be repaid within 7 years from the date of the original purchase of the vehicle (v) Reimbursement of costs of unencumbered vehicles can also be given under the above takeover norms and other terms of financing old vehicles up to 2 years of age. (vi) In case of take over of Car Loans from other banks. The rates of interest for new vehicles will be applicable, if no change in ownership is envisaged. (PBBU/AL/1/11 May 06,2009) 85 (iv)

7.

8. 8.1

Repayment: The loan should be repaid in suitable monthly/quarterly instalments acceptable to the customer in such a manner that the loan is liquidated as under: Maximum 7 years for all categories of borrowers

8.2 8.3

The customer will have option for payment in shorter duration. In case of Car Loans to agriculturists, the periodicity of instalments for repayment should be decided upon the merits of each case, on a realistic basis, coinciding with harvest of the crop at half yearly/yearly intervals or coinciding with the generation of income from ancillary agricultural activities pursued by the borrower e.g. dairy/poultry etc. or in monthly/quarterly instalments in case of other regular sources of income. For old vehicles recovery should be such that the loan gets repaid within 7 years from the date of original sale. The repayment should be fixed on the basis of equated instalments, preferably with a check off facility in the case of salaried persons. The Equated Instalment will be determined on the basis of the current rate of interest. Where check off facility is not available, post dated cheques should be obtained. The procedure relating to obtention and custody of post dated cheques has been circulated vide letter No PB/106A/361. Under check off arrangement, an Irrevocable Letter of Authority, as per Annexure-Car II, is required to be obtained from the borrower (employee) concerned and a letter of undertaking is to be taken from the employers as per Annexure-Car III. In case of Govt. officers, who are themselves the Drawing and Disbursing authorities and take car loans, a letter of undertaking on the lines of Annexure- Car VIII need only be obtained. Wherever Electronic Clearing Service (ECS) is available, the Bank may use the services for paperless debit of instalments. Additionally, six undated and duly signed cheques to cover the loan amount should be obtained from the borrower

8.4

8.5

8.6

8.7

8.8

8.9

8.10

86

8.11

Repayment cycle: For loans disbursed on or before 15th of the month and on or after 16th of the month, the repayment date should be fixed as 10th and 20th of the following month respectively.

8.12

Seizure of vehicle: Whenever a cheque is dishonoured or an instalment due remains unpaid for the first time it should be immediately brought to the notice of the borrower by issuance of a notice, as per instructions contained in Corporate Centre letter no. PB/AL/1/169 dated March 17, 2006.

9.

Rate of Interest: Interest rates will be as conveyed from time to time.

9.1

9.2 i.

ii.

Rate of interest in case of takeovers: In Case of take over of Car Loans from other banks, rates of interest for new vehicles will be applicable, if no change in ownership is envisaged. The various concessions offered and conveyed as per our Cir. No. PB/AL/08 dated November 07, 2008 will remain effective as follows: Special concession under Plus schemes given under all products viz. Home Loans, Auto Loans, Festival Loan and SARAL, and under Credit Khazana will be 0.10%. Network GMs have discretion to quote concession of 0.25% in interest rate to all customers who are eligible under the Corporate Salary Package subject to upper ceiling on concessions.

9.3 The effective interest will increase or decrease with every increase or decrease in the Base Rate or whenever the rate of interest on Car Loans are revised with out changing Base Rate, this should be advised to the borrower(s). 9.4 While generally the Equated Monthly Instalment need not be changed with every change in the interest rate, should the borrower seek an EMI reduction consequent to a rate reduction the same may be permitted if the account is a standard asset and the loan amount outstanding is at least Rs.5 lacs and the interest rate reduction is of 1% or more. The above facility will be permitted only once during the currency of the loan.

9.5

87

9.6

The Bank also reserves the right to increase the EMI in case of interest rate rise. The product codes are as under:

9.7

Used Car Upto 3 years 6251 1033 Used car > 3 to 7 years 6251 1034 It has been decided to revise the Base Rate upwards by 50 bps from 9.50% to 10% effective from 13th August, 2011. Accordingly, the revised interest rates effective from 13th August, 2011 will be as under: ( Base Rate = 10% p.a.) SL.NO Tenure Rate of Interest 1 2 Up to 3 years > 3 years 7.25% above Base Rate i.e. 17.25% p.a 7.50% above Bate Rate i.e. 17.50% p.a

It has also been decided to revise the Benchmark Prime lending Rate (referred to SBAR) upwards by 50 bps from 14.25% %p.a to 14.75% p.a. effective from 11th July, 2011 (Circular. No. PB/AL/1/20 dated 12th August, 2011) 10. Penal Interest: 10.1 Extant policy on Penal Interest Rate on was reviewed in the light of the special characteristics and requirements of Personal Segment loans, and the Board has approved the revised Penal Interest Rate Policy for Personal Segment loans as under : Extant instructions for standard Personal Segment Loans Penal interest should not be charged for loans upto Rs.25,000/For loans above Rs.25000/- , penal interest rate @ 2% on the entire outstanding for the period of default should be recovered if the EMI remains unpaid for a period of 30 days from the due date. Revised instructions for proposed for standard Personal Segment Loans No change

For Loans above Rs.25000/- , if the irregularity exceeds EMI or Installment amount, for a period of one month , then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part installment or part EMI remains overdue, then penal interest 88

should not be levied*. This provision has been made to avoid application of penal interest on Personal Segment Loan accounts where stipulated EMIs or instalments are being paid regularly by the borrowers. *Irregularity in the account in CBS may arise for several reasons : (i) small difference in the EMI amount on the PDC and the actual EMI in the system, (ii) delay of a few days in presenting PDC, (iii) change in loan interest rate not large enough to warrant regeneration of repayment schedule etc.. With even an irregularity of Rs.1, the account status becomes Irregular and consequently, after 30 days, penal interest @2% is charged for the entire loan outstanding. As the EMIs can never take care of the irregular portion, the application of penal interest becomes perpetual, which further increases the irregularity and leads to build up of Indicative NPAs. This also leads to customer complaints and avoidable extra work for the operating staff in investigating and making refunds. 10.2 As per the extant loan policy of the Bank, the sanctioning authority has been given the discretion for sanctioning waiver of application of penal interest for default in payment of interest/installment in case of Term Loans. It has now been decided to add the following qualifiers for use of this discretion:(a) waiver will only be ex-post facto, i.e. the system will levy penal interest as per the rule, and appropriate authority can permit refund, and (b) discretion should be utilized only where the borrowers claims for waiver is merited on facts such as late presentation of PDCs by us, etc. Provisions of this policy may also be used by the operating units to correct the existing anomalies in the p-segment loan accounts which have arisen due to application of incorrect penal interest. Deputy Managing Director & Group Head (NBG) has been given authority, subject to compliance with RBI guidelines, BCSBI/IBA Code etc. to raise the floor limit above the minimum prescribed by the RBI, (Presently Rs.25,000 as per minimum floor prescribed by RBI) within the Bank according to business exigencies but in compliance with RBI guideline. ( Circular No PBBU/HL/PM/9(A) dated 18th June 2010) 11. Processing Fee: Processing fee is to be recovered on the loan amount upfront as under: 89

10.3

10.4

(a) (b)

When loans are sanctioned: 0.51% of the loan amount subject to Minimum of Rs. 510/- and maximum of Rs. 10200/-. When loans are rejected: 25% of the Processing Fee will be retained if the application is rejected after pre-sanction survey subject to Minimum of Rs. 510/- and maximum of Rs. 2550/-.

The General Manager of respective Networks at the Circle can reduce processing fee up to 50%, in car loan in respect of: (a) (b) 12. Security: a. Hypothecation of vehicle and noting of hypothecation charge in the books of R.T.O. b. Spouse should be made co-borrower, if his/her income has been taken into account for computing eligibility of loan amount. c. Any other security including third party guarantee may be obtained only when there is a need for credit enhancement e.g. credit score below threshold limit, any other business consideration. (PB/AL/1/33 21/06/07) No other security to be obtained. 13. Documentation: i) Application Form Annexure-Car I ii) Irrevocable Letter of Authority from the borrower Annexure-Car II iii) Letter from the Drawing and Disbursing Officer Annexure-Car III iv) Letter forwarding demand draft/Bankers cheque to supplier /dealer Annexure-Car IV v) Hypothecation Agreement Annexure -Car V vi) Guarantee Agreement where applicable Annexure-Car VI vii) Arrangement Letter Annexure-Car VII viii) Irrevocable Letter of authority where Drawing and Disbursing officer himself is the applicant Annexure-Car VIII Insurance: Short term promotional drives; Bulk finance with availability of check-off from reputed employers. (PB/AL/1/52 6/08/07)

14.

14.1 The vehicle purchased is to be kept comprehensively insured in the name of the borrower for the market value or at least 10% above the loan amount outstanding, whichever is higher, and the Banks interest as a hypothecatee 90

should be noted in the certificate of insurance and insurance policy. A copy of this is to be retained with the loan documents. 14.2 Insurance register is to be maintained. 15. 15.1 Mode of Disbursement: w.e.f. 08.12.2010 :It has been decided that all car loan proceeds should be disbursed only by way of RTGS/NEFT facility. In case the dealer is maintaining account with the branch of State Bank of India, the proceeds should be credited through CBS system. The existing letter from branch forwarding demand draft/bankers cheque to dealer/supplier needs to be suitably modified to provide for payment of proceeds by way of RTGS/NEFT or through CBS system to the dealers. The format of the letter is attached as Annexure- Car-IV. The names and addresses of the dealers are available in LOS and therefore the genuineness of the dealer can be checked from LOS. Also the account number of the dealers should be obtained beforehand, and any change in account number should be dealt with caution. (Letter No. PB/AL/1/272 dated 8th December 2010) Prepayment Penalty: Pre-payment fee of 2% of the amount of the loan prepaid will be levied if; The loan is taken over by any other bank/financial institution Or The loan is repaid before expiry of half of the agreed repayment period Or Partial repayment is being made in the first year

15.2

15.3

16.

However, no pre-payment penalty should be levied if the loan account is foreclosed for taking a fresh car loan for new or used car from Bank. 17. Pre-sanction survey and completion of KYC formalities: To be conducted as under: (a) Only one official from RACPC, MPSF or Branch to visit the customer for KYC & Pre-sanction survey which should be done together. The KYC, Pre-sanction Survey & Opinion Report prepared by official of 91

any of these offices under his/ her signature & seal should be acceptable to sanctioning authority. (b) For existing customer, Pre-sanction survey and KYC can be waived if the address of the customer has not changed and he is a: Home/Personal Loan customer with minimum one years satisfactory track record. OR A car loan customer with a satisfactory track record, who wants to avail another car loan. OR Customer having satisfactory deposit account with average balance of Rs. 50,000/- & above and banking with us for at least one year. OR Under Corporate Tie-ups where check-off is available.

18.

19.

Inspection: For Standard Asset accounts periodical inspections are waived after the initial inspection. However, if there is a default of 2 monthly instalments, inspection would be required. In case of NPA accounts inspections should be made twice a year. Inspection register is to be maintained properly. Discretionary Powers: To be exercised as per the Delegation of Powers advised by the LHO.

20.

General: The following papers to be submitted along with loan application: 1. Statement of Bank account of the borrower for last 12 months. This will facilitate in arriving at the credit score of the applicant in the car loan scoring model. 2. 2 passport size photographs of borrower/Guarantor(s). 3. Signature identification from bankers of borrower/Guarantor(s). 4. A copy of passport /voters ID card/PAN card. 5. Proof of residence by way of tax receipts, telephone bill, electricity bill or any other document that comply with the regulatory and/or KYC requirements. 6. Latest salary-slip showing all deductions and TDS certificate-Form-16 in case of salaried persons.

92

7. I.T. Returns/Form 16 for the last 2 years for salaried employees and 3 years in respect of professional/self-employed/businessmen duly accepted by the ITO wherever applicable to be submitted. It is not necessary to obtain both I.T. Return and Form 16 from the applicant. 8. Proof of official address for non-salaried individuals. Relaxation may be permitted by obtaining ITR/Form 16 for 1 year and Statement of Bank Accounts for 6 months, by one step higher sanctioning officer, provided they are satisfied about the genuineness of source, amount and continuity of income confirming repayment capacity of the borrower over the loan tenor. In all such cases the basis for income verification should be properly recorded on the loan appraisal. (PB/AL/1/52 6/08/07) (PB/AL/1/7 3/11/07) 21. Processing Time:

The maximum time schedule for receipt of application and sanction/disbursal of the loan is 2 days. For effective monitoring of the above a register should be maintained at the Branch/Offices on the lines of the register maintained for SIB advances. Control Report and Irregularity Reports should be sent to controlling office as per extant instructions for Personal Segment Advances.

22. Transfer of Accounts: Standard assets can be transferred from one branch to other branch at the request of borrower. 23. Place of availing loan: Loan can be availed at the place of permanent residence or work. However, inspection and verification of asset would be done by an office located at the centre where the asset is maintained. An inspection fee of Rs. 350/- will be charged for this purpose. The inspection charges are to be recovered every time an inspection is carried out as per the laid down instructions. The inspection fee of Rs. 350/will be recovered by the inspecting branch by raising a debit on the financing branch and credit it to its commission account. The arrangement letter should clearly mention levy of this charge and its periodicity (if stipulated). (PB/AL/1/52 dated 6/08/07) 93

CERTIFIED PRE-OWNED CAR LOAN SCHEME When the Used Car Loan Scheme was launched, the used car market was just picking up and had not matured. Therefore, there was an element of abundant caution in pricing. Some of the well known certified used car dealers in India like Maruti True Value, Honda Auto Terrace, Ford Assured, Toyota U Trust, Hyundai Advantage, BMW Infinity Cars, Tata Motors Fortune Cars, Mahindra First Choice etc have already established as a good market players in this segment, while many more have plan to come. Now the market has matured and reputed car dealers in cooperation with manufacturers have come up with certified cars and offer certain advantages like extended warranties, financing terms, service perks etc just like in the case of a new car. There is a well organized market and there is immense potential available in this particular segment. 2. To finance this category of car buyers in a focused manner, the competent authority has approved Certified Pre-Owned Car Loan Scheme by tweaking our existing Used Car Loan product and narrowing down the interest differential between New Car loans and the Certified Car Loans. The new Certified PreOwned Car Loan Scheme is enclosed as Annexure-1. 3. All other terms and conditions regarding eligibility, type of loan, margin, loan amount, repayment period, processing fee, insurance, discretionary powers, and place of availing loan, mode of disbursement, Pre-payment penalty and Penal Interest Rate etc are as applicable to Used Car Loan scheme. Our existing Used Car Loan Scheme will run concurrently and will cover other than Certified Pre-Owned Cars. 4. Documentation: Under Certified Pre-Owned Car Loan Scheme the additional valuation certificate is not required. The company purchase vehicles directly from sellers and check thoroughly the vehicle, insurance/service history and its ownership. They do not get the vehicle transferred in their name. As and when they find a purchaser, they sell the vehicle and transfer the vehicle to the purchaser. Hence the payment has to be made to these vendors as they have already made payment to the original owner. A stamped indemnity will have to be obtained on the letterhead of the Dealer of Certified Pre-Owned Car, to protect the Bank in case of any ownership issues being raised by the original owner of the vehicle. The format of indemnity approved by Law Department is enclosed as Annexure-2. 6. Service fee for sourcing business to SBI is to be paid at flat 2% of the sanctioned loan amount to these Dealers. The above service charges is payable only if the repayment period of the Car Loan is at least two years.

94

ANNEXURE -1 CERTIFIED PRE-OWNED CAR LOAN SCHEME 1. Purpose: Term Loans for purchase of Certified Pre Owned car not more than five years old. The loan should be repaid within 7 years from the date of the original purchase of the vehicle. Financing of old vehicles on the basis of duplicate Registration Books will not be entertained. Eligibility: Age: 21-65 years. Loan must be fully repaid before the borrower attains the age of 70 years. Loans can be granted by sanctioning authority to individuals who have sufficient, regular and continuous source of income for servicing the loan repayment beyond 65 years. Permanent employees of State/Central Govt., Public Sector Undertakings, corporations, private sector companies, and reputed establishments are eligible under the scheme. Professionals, self-employed and others who are income tax assessees and persons engaged in agriculture and allied activities can also avail of the loan facility. Salaried: Net annual income of applicant and/or co-applicant if any, together to be Rs.100,000/- and above. Net monthly income of applicant(s) should be at least 2 times of EMI Clarification: Net monthly income will be equivalent to monthly Gross salary net of all statutory deductions like Income Tax and compulsory deductions like Employee Provident Fund etc. No other deductions should be deducted from the monthly Gross Salary to arrive at the NMI. Accordingly, NAI will be 12 times of NMI as defined above. 2.2 Self-employed and Professionals: Net annual income of applicant and/or co-applicant if any, together to be Rs.100,000/- and above for the last year as per income tax return. Net monthly income of applicant(s) should be at least 2 times of EMI Persons engaged in agriculture and allied activities: Same as for Selfemployed and Professionals except that income tax return will not be required.

2.

2.1

2.3

(Clarification: Regular income from all sources can be considered provided the sanctioning authority is satisfied with the proof of income. Income of spouse, father, mother, brother, sister, son and daughter may be included for arriving at the 95

loan eligibility (any one). The person whose income is included will join as a coborrower. The maximum number of applicants should be restricted to two.) 3. 3.1 Authorized Branches All metro and urban branches and all branches with `P divisions, all PBBs, all districts headquarter branches, project area branches and branches specially authorized by the AGM (RBO) will implement the scheme. Loan Amount The maximum loan amount that can be granted would be restricted to 30 times the net monthly income of salaried persons (i.e., net of all deductions including actual monthly tax deductions at source). In case of others, maximum loan amount would be 2.5 times the net annual income (i.e., income as per latest income tax return filed less taxes payable). For agriculturists the annual net income should be arrived at by branches, based on the nature of their activity, (i.e., farming, dairy, poultry, orchards) land holding, cropping pattern, yield, etc. and average level of income derived there from in the area. Subject to a maximum of Rs. 15 lacs. Regular income from all sources can be considered provided the sanctioning authority is satisfied with the proof of income. Wherever, the income of spouse is included for arriving at the loan amount, the spouse will join as co-borrower, instead of guarantor. In no case should the EMI/NMI percentage exceed 50%. However, the Branch Manager/RACPC head or the sanctioning authority, where such sanctioning authority is not below the rank of Chief Manager, will have the discretion to grant a higher loan, subject to EMI/NMI percentage not exceeding 60% in case of tie-ups with reputed PSUs/ corporates or institutions or owing to strategic reasons. Margin For all Loans margin: 15% The total cost of vehicle is inclusive of one time road tax, octroi, registration, insurance and accessories. Any consumer offer or discounts announced by the manufacturers and dealers should be reduced from the on-road price of the vehicle. The maximum cost of accessories should not exceed 5% of the cost of vehicle or Rs. 25,000 whichever is less. The sanctioning authority will have discretion to reduce the margin by 5% where check off facility from a reputed employer is available. He may permit further relaxation in margin upto 5%. 96

4. 4.1

4.2 4.3 4.4 4.5

5. 5.1 5.2

5.3 5.4

6. 6.1. 6.2

Valuation No valuation certificate is required under the scheme. Branches should ensure that the fitness and valuation is appropriate to the past ownership pattern. Care should be taken to avoid models, which have a low second/third hand demand like Fiat Uno, Daewoo, Matiz, etc. Takeover of Loans Takeover of car loans may be considered selectively where: the vehicle is not more than 2 years old; it is a single ownership vehicle; no insurance claim has been availed and the account of the borrower with the other bank is a Standard Asset i.e. all repayments have been made as per terms of sanction of the original financier. The loan should be repaid within 7 years from the date of the original purchase of the vehicle. Reimbursement of costs of unencumbered vehicles can also be given under the above takeover norms and other terms of financing old vehicles up to 2 years of age. In case of takeover of Car Loans from other banks. The rates of interest for new vehicles will be applicable, if no change in ownership is envisaged. Repayment The loan should be repaid in suitable monthly/quarterly instalments acceptable to the customer in such a manner that the loan is liquidated as under: For Salaried: Maximum 7 years For Self-employed and Professionals: Maximum 7 years The customer will have option for payment in shorter duration. In case of Car Loans to agriculturists, the periodicity of instalments for repayment should be decided upon the merits of each case, on a realistic basis, coinciding with harvest of the crop at half yearly/yearly intervals or coinciding with the generation of income from ancillary agricultural activities pursued by the borrower e.g. dairy/poultry etc. or in monthly/quarterly instalments in case of other regular sources of income. For old vehicles recovery should be such that the loan gets repaid within 7 years (as per 8.1) from the date of original sale. The repayment should be fixed on the basis of equated instalments, preferably with a check off facility in the case of salaried persons. The Equated Installment will be determined on the basis of the current rate of interest.

7. (a) (b) (c) (d) (e)

(f) (g)

(h)

8. 8.1

8.2 8.3

8.4 8.5 8.6

97

Where check off facility is not available post-dated cheques should be obtained. The procedure relating to obtention and custody of post dated cheques has been circulated vide letter No PB/106A/361. 8.8 Under check off arrangement, an Irrevocable Letter of Authority, as per Annexure-Car II, is required to be obtained from the borrower (employee) concerned and a letter of undertaking is to be taken from the employers as per Annexure-Car III. 8.9 In case of Govt. officers, who are themselves the drawing and disbursing authorities and take car loans, a letter of undertaking on the lines of Annexure- Car VIII need only be obtained. 8.10 Wherever Electronic Clearing Service is available, the Bank may use the services for paperless debit of instalments. The Reserve Bank of India ECS (Debit Clearing) procedures are enclosed. Additionally six undated cheques to cover the loan amount should be obtained from the borrower 8.11 Repayment cycle: For loans disbursed on or before 15th of the month and on or after 16th of the month, the repayment date should be fixed as 10th and 20th of the following month respectively. Seizure of vehicle: Whenever a cheque is dishonored or an installment due remains unpaid for the first time it should be immediately brought to the notice of the borrower by issuance of a notice, as per instructions contained in Corporate Centre letter no. PB/AL/1/169 dated March 17, 2006. Rates of Interest

8.7

8.12

9.

9.1 The product code is 6251 1072. 9.2 It has been decided to revise the Base Rate upwards by 50 bps from 9.50% to 10% effective from 13th August, 2011. Accordingly, the revised interest rates effective from 13th August, 2011 will be as under: ( Base Rate = 10% p.a.) SL.NO Tenure Rate of Interest 1 2 Up to 3 years > 3 years 6% above Base Rate i.e.16% p.a. 6.50% above Base Rate i.e.16.50% p.a.

98

It has also been decided to revise the Benchmark Prime lending Rate (referred to SBAR) upwards by 50 bps from 14.25% %p.a to 14.75% p.a. effective from 11th July, 2011 (Circular. No. PB/AL/1/20 dated 12th August, 2011) 9.3 Rate of interest in case of takeovers: In Case of takeover of Car Loans from other banks, rates of interest for new vehicles will be applicable, if no change in ownership is envisaged. 9.4 The effective interest will increase or decrease with every increase or decrease in the Base Rate or whenever the rate of interest on Car Loans are revised without changing Base Rate, this should be advised to the borrower(s). 9.5 While generally the Equated Monthly Installment need not be changed with every change in the interest rate, should the borrower seek an EMI reduction consequent to a rate reduction the same may be permitted if the account is a standard asset and the loan amount outstanding is at least Rs.5 lacs and the interest rate reduction is of 1% or more. 9.6 The above facility will be permitted only once during the currency of the loan. 9.7 The Bank also reserves the right to increase the EMI in case of interest rate rise. 10. Penal Interest For Loans above Rs.25000/- , if the irregularity exceeds EMI or Installment amount, for a period of one month, then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part installment or part EMI remains overdue, then penal interest should not be levied*. This provision has been made to avoid application of penal interest on Personal Segment Loan accounts where stipulated EMIs or instalments are being paid regularly by the borrowers.

10.1 As per the extant loan policy of the Bank, the sanctioning authority has been given the discretion for sanctioning waiver of application of penal interest for default in payment of interest/installment in case of Term Loans. It has now been decided to add the following qualifiers for use of this discretion:10.2 waiver will only be ex-post facto, i.e. the system will levy penal interest as per the rule, and appropriate authority can permit refund, and 10.3 discretion should be utilized only where the borrowers claims for waiver is merited on facts such as late presentation of PDCs by us, etc. Provisions of this policy may also be used by the operating units to correct the existing anomalies in the p-segment loan accounts which have arisen due to application of incorrect penal interest. Deputy Managing Director & Group Head (NBG) has been given authority, subject to compliance with RBI guidelines, BCSBI/IBA Code etc. to raise the 99

floor limit above the minimum prescribed by the RBI, (Presently Rs.25,000 as per minimum floor prescribed by RBI) within the Bank according to business exigencies but incompliance with RBI guideline. (Circular No. - PBBU/HL/PM/9(A) dated 18th June 2010) 10.4 Branches should send letters to all borrowers as per Annexure C to caution them against occurrence of irregularity in the accounts. A copy of the Notice may also be displayed in the Branch notice board for information of all Psegment borrowers. Notice as per Annexure D should be addressed to all defaulting borrowers advising them to regularize the loan within 30 days of occurrence of irregularity and his/her liability to pay penal interest in case of failure to regularize the loan within the stipulated period. 11. Processing Fee Processing fee is to be recovered on the loan amount upfront as under: When loans are sanctioned: 0.51% of the loan amount subject to Minimum of Rs. 510/- and maximum of Rs. 10200/-. When loans are rejected: 25% of the Processing Fee will be retained if the application is rejected after pre-sanction survey subject to Minimum of Rs. 510/- and maximum of Rs. 2550/-. Security Hypothecation of vehicle and noting of hypothecation charge in the books of R.T.O. Spouse should be made co-borrower, if his/her income has been taken into account for computing eligibility of loan amount. Any other security including third party guarantee may be obtained only when there is a need for credit enhancement e.g. credit score below threshold limit, any other business consideration No other security to be obtained. 13. i) ii) iii) iv) Documentation Application Form Annexure-Car I Irrevocable Letter of Authority from the borrower Annexure-Car II Letter from the Drawing and Disbursing Officer Annexure-Car III Letter forwarding demand draft/Bankers cheque to supplier /dealer Annexure-Car IV v) Hypothecation Agreement Annexure -Car V vi) Guarantee Agreement where applicable Annexure-Car VI vii) Arrangement Letter Annexure-Car VII viii) Irrevocable Letter of authority where Drawing and Disbursing officer himself is the applicant Annexure-Car VIII 100

12. a. b. c.

14. Insurance 14.1 The vehicle purchased is to be kept comprehensively insured in the name of the borrower for the market value or at least 10% above the loan amount outstanding, whichever is higher, and the Banks interest as a hypothecatee should be noted in the certificate of insurance and insurance policy. A copy of this is to be retained with the loan documents. 14.2 Insurance register is to be maintained. 15. Mode of Disbursement w.e.f. 08.12.2010 :15.1 It has been decided that all car loan proceeds should be disbursed only by way of RTGS/NEFT facility. In case the dealer is maintaining account with the branch of State Bank of India, the proceeds should be credited through CBS system. 15.2 The existing letter from branch forwarding demand draft/bankers cheque to dealer/supplier needs to be suitably modified to provide for payment of proceeds by way of RTGS/NEFT or through CBS system to the dealers. The format of the letter is attached as Annexure Car-IV. 15.3 The names and addresses of the dealers are available in LOS and therefore the genuineness of the dealer can be checked from LOS. Also the account number of the dealers should be obtained beforehand, and any change in account number should be dealt with caution. (Letter No. PB/AL/1/272 dated 8th December 2010) 16. Prepayment Penalty: Pre-payment fee of 2% of the amount of the loan prepaid will be levied if; The loan is taken over by any other bank/financial institution Or The loan is repaid before expiry of half of the agreed repayment period Or Partial repayment is being made in the first year

However, no pre-payment penalty should be levied if the loan account is foreclosed for taking a fresh car loan for new or used car from Bank. 17. 1. Pre-sanction survey and KYC To be conducted as under: Only one official from RACPC, MPSF or Branch to visit the customer for KYC & Pre-sanction survey which should be done together. The KYC, Presanction survey & opinion report prepared by official of any of these offices 101

2.

under his/ her signature & seal should be acceptable to sanctioning authority. For existing customer, Pre-sanction survey and KYC can be waived if the address of the customer has not changed and he is a: Home/Personal Loan customer with minimum one years satisfactory track record. OR A car loan customer with a satisfactory track record, who wants to avail another car loan. OR Customer having satisfactory deposit account with average balance of Rs. 50,000/- & above and banking with us for at least one year. OR Under Corporate Tie-ups where check-off is available.

18. Inspection a) For Standard Asset accounts periodical inspections are waived after the initial inspection. However, if there is a default of 2 monthly instalments, inspection would be required. In case of NPA accounts inspections should be made twice a year. b) Inspection register is to be maintained properly. 19. Discretionary Powers 19.1 To be exercised as per the Delegation of Powers advised by the LHO. 20. General 20.1 The following papers to be submitted along with loan application: 1. Statement of Bank account of the borrower for last 6 months. 2. 2 passport size photographs of borrower/Guarantor(s). 3. Signature identification from bankers of borrower/Guarantor(s). 4. A copy of passport /voters ID card/PAN card. 5. Proof of residence. 6. Latest salary-slip showing all deductions and TDS certificate-Form-16 in case of salaried persons. 7. I.T. Returns/Form 16 for the last 2 years for salaried employees and 3 years in respect of professional/self-employed/businessmen duly accepted by the ITO wherever applicable to be submitted. 8. Proof of official address for non-salaried individuals. 21. Certified Pre-Owned car financing to individuals through Maruti True Value and similar other dealers: In normal used car loans, the ownership of the vehicle is verified by the branch/RACPC during pre-sanction survey. However, in the case of financing the Certified Pre-Owned Cars through Maruti True Value, Hyundai 102

Advantage and similar other dealers, this procedure need not be conducted and the payment be made directly to the dealers. To protect the Bank in case of any ownership issues which may be raised by the original owner of the vehicle, an indemnity as per Annexure 2 should be executed on the letterhead of the dealer of Maruti True Value and similar other dealers. 22 Processing Time 22.1 The maximum time schedule for receipt of application and sanction/disbursal of the loan is 2 days. 22.2 For effective monitoring of the above a register should be maintained at the Branch/Offices on the lines of the register maintained for SIB advances. 22.3 Control Report and Irregularity Reports should be sent to controlling office as per extant instructions for Personal Segment Advances. 23. Payment of Service Charge to Car Dealers 23.1 Service charge would not be payable for vehicles financed to SBI staff. In all other cases service charge will be paid as per as per Annexure III. 23.2 The service fee is inclusive of the service tax and the payment of service tax to government is to be made by the car dealer. 24. Transfer of Accounts: Standard assets can be transferred from one branch to other branch at the request of borrower. 25. Place of availing loan: Loan can be availed at the place of permanent residence or work. However, inspection and verification of asset would be done by an office located at the centre where the asset is maintained. An inspection fee of Rs. 350/- will be charged for this purpose.

26. Payment of service charge to car dealers: With a view to improving our penetration and presence in auto loans market, we have devised a mechanism to compensate the car dealers for the services rendered by them in: Explaining the comparative advantages of our product to potential customers, Convincing prospective customers about merits of obtaining car finance from us, Directing business to our branches.

i) ii) iii)

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For providing this service, the car dealers are required to deploy manpower for the purpose and in the process incur some direct and indirect expenses. The initiative is addressed to compensate for the services and is also in line with the market practice. QUANTUM OF SERVICE CHARGE: Service fee for sourcing business to SBI be paid at flat 2% of the sanctioned loan amount. The above service charges is payable only if the repayment period of the Car Loan is at least two years.

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Annexure-Car I

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To be taken separately if the 2nd applicant is also employed Annexure-Car- II ______________________________ ______________________________ (Address of the disbursing authority) IRREVOCABLE LETTER OF AUTHORITY

State Bank of Indias *(Name of the Scheme). Employee No...Designation

Dear Sir/Madam, I, .. am an employee of your organisation. The State Bank of India,..Branch, have agreed to sanction a loan of Rs. (Rupees .. only) to me under their captioned scheme for purchase of..

2. (a) I hereby authorise you to recover by deduction from my salary payable to me by you, a sum of Rs. (Rupees only), every month, beginning from the month of.representing the monthly instalment payable by me to the State Bank of India .. Branch, for the aforesaid loan and remit the amount to the aforesaid branch of the Bank. (b) I hereby authorise you to credit/continue to credit my salary to State Bank of India ... Branch, payable to me by you every month, since the monthly instalments for repayment of the aforesaid loan are to be recovered by the..Branch of the SBI by debit to my savings Bank/Current Account No..with them, in accordance with an undertaking furnished by me to the Bank. 3. In case of my death, retirement, resignation or discontinuing the service for any reason, I hereby authorise you to pay an amount payable on my account including amount payable by way of terminal benefits like P.F. and gratuity by reason aforesaid, to State Bank of India,.. Branch, towards the balance outstanding in the aforesaid loan account together with interest costs and /or any monies as may be due to the Bank in respect of the aforesaid loan.

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4. I hereby agree that I shall not be entitled to withdraw or revoke this authority even in case of my transfer, or otherwise, until the whole of my debt inclusive of interest etc. to the State Bank of India ... Branch is liquidated, and written consent of the Bank is obtained. Yours faithfully, Witness: Signature. Full Name Name.. Designation. Branch Date Signature Full Designation Branch/Dept. Date ...

Note: Delete 2(a) or 2(b) whichever is not applicable.

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To be taken separately if the 2nd applicant is also employed Annexure-Car- III FOR CAR LOAN The Branch Manager, State Bank of India, .. Dear Sir/Madam, State Bank of Indias scheme of Shri/Smt./Kum. . S/o /D/o /W/o SHRI.. IRREVOCABLE LETTER OF AUTHORITY We certify that Shri/Smt. is a permanent employee of this organisation drawing gross salary of Rs. per month. 2. In view of your agreeing to grant to him/her a loan under the captioned scheme, we have received and noted*: i) The irrevocable letter of authority from the employee, for deducting a sum of Rs.. from his/her salary per month beginning from the salary for the month of .. and remit the same to you for crediting to his loan account till we receive further instructions from you. ii) the irrevocable letter of authority from the employee, for crediting his/her salary every month to his/her account with State Bank of India,.. Branch, till we receive further instructions from you. iii) the irrevocable letter of authority in respect of making payment out of any amount payable to the employee including the amount payable by way of terminal benefits like P.F. and gratuity in case of his/her death, retirement, resignation or discontinuing the service for any reason whatsoever, to State Bank of India, .. Branch, towards the balance outstanding in the aforesaid loan account together with interest etc., and such payment shall be deemed to be a payment to the employee or on his account. iv) the employee agree that he/she will not be entitled to withdraw or revoke his/her authority, even in case of his/her transfer, until the whole of his/her debt

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inclusive of interest to the State Bank of India, Branch is liquidated and written consent of the Bank is obtained. 3. In the event of transfer of the employee elsewhere, we undertake to convey the instructions to the transferee office under advice to you, immediately.

Place: Date:

Signature of the Officer (Authorised to disburse salary and allowances) *Note: delete 2(i) or 2(ii) whichever is not applicable.

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Annexure-Car IV Letter from Branch to dealer/supplier To, M/s ___________________ _______________________ _______________________ (Name & Address of the Dealer/Supplier) No. Dear Sir/Madam, Ref: your Performa invoice / letter No. ___________ dated __________for supply of_________________ to Shri / Smt / _______________________________ (1st applicant) Shri / Smt / _______________________________ (2nd applicant) Hereinafter jointly referred to as borrowers. With reference to your Performa invoice/letter no. _______ dated ________, we have today credited your account No. _______ with ______________ (Name of The Bank), ------------- (Name of the Branch)(UTR Number _____________) on behalf of Shri/Smt. ______________________________by Rs._________ (Rupees___________), being the cost of _____________ to be supplied/delivered to Shri/Smt._________________________. Please forward to us your stamped receipt for the amount. The vehicle may be registered in the name of the 1st applicant only. 2. Please note that the amount is to be appropriated specifically towards the purchase prices of the said vehicles. It should not be appropriated by you towards or set off against any other debt or liability due or owing to you by Shri/Smt. _______________________________ (Name of the borrower). Please note that the Bank will have the right to call back the amount if you fail to deliver the vehicle to the above named person against his/her acknowledgement. Date:

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3. Please advise us the full particulars such as engine number/chassis number/year of manufacture etc. of the vehicle delivered to Shri/Smt. ___________________________________. 4. Shri/Smt. ____________________ and Shri/Smt/ ______________________ have been sanctioned by us a Term Loan of Rs. ______________ jointly for purchase of the vehicle. Please, therefore, ensure that the Hypothecation Charge over the vehicle to be supplied to Shri/Smt.____________________ is registered in favour of State Bank of India, ________________ Branch in the books of Regional Transport Officer. Please arrange to obtain a Certificate from RTO to the effect of having registered our Hypothecation charge, which may be forwarded to us for our record. The relative form signed by the borrower and the Bank for this purpose is forwarded herewith. Yours faithfully, Branch Manager (To be filled in and returned to the Branch by the Dealer supplying the vehicle) Vehicle Make : Date of Delivery :

Engine Number :

Chassis Number :

(Signature of the dealer)

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Annexure-Car V Loancum-Hypothecation Agreement (To be stamped as Deed of Hypothecation and Agreement in accordance with the Stamp Act of the state in which the document is executed. Not to be attested.) The State Bank of India having its Branch Office at (Hereinafter called the Bank which expression shall include its successors and assigns) having at the request of Shri / Smt. / Kum Son / Daughter / Wife of at present aged around .. and residing at . (hereinafter, called the 1st applicant which expression shall include his/her respective heirs, executors, administrators and assigns) and Shri / Smt. / Kum Son / Daughter / Wife of at present aged around .. and residing at . (hereinafter, called the 2nd applicant which expression shall include his/her respective heirs, executors, administrators and assigns) hereinafter jointly referred to as borrowers, agreed to grant to the Borrowers a loan of Rs to enable the Borrowers to purchase a 2/4 wheeler vehicle more particularly specified and described in Schedule I hereto ( hereinafter referred to as the vehicle) for his/her personal use as set forth in the Borrowers application dated the . a copy of which is annexed and forms part of this Agreement, such loan to be secured as herein provided. IT IS HEREBY AGREED AS FOLLOWS: 1. The request for grant of the loan by the Borrowers shall be deemed to constitute the basis of this Agreement and the loan advanced/to be advanced by the Bank to the Borrowers. 2. The Borrowers hereby agree that the loan shall, inter alia, be governed by the terms hereof. 3. The Borrowers expressly agree and undertakes to notify the Bank in writing of any circumstance, affecting the correctness of any of the particulars set forth in his application immediately after the occurrence thereof. 4. The Borrowers expressly agree and undertakes that the Loan shall be used exclusively for the purposes set forth in his application and that no change shall be made therein without the written consent of the Bank. 5. The Borrowers agree that the Loan shall be paid by the Bank to an authorized dealer of the vehicle directly against their invoice on receiving information that 119

the vehicle would be delivered to him on payment/within . days of payment. However, in deserving cases where the Borrowers has purchased the vehicle with his own funds, the Bank may provide him loan upto ..% of the cost of the vehicle. The Borrowers shall produce to the Bank the original receipts for having purchased the vehicle and shall hand over photocopy of the said receipt to the Bank for its record. 6. The borrower shall repay to the Bank, the amount of loan and interest thereon in equated monthly installments of Rs.___________ each commencing from the month of _________ 20___ till the entire loan with interest is fully repaid. The equated monthly instalment also includes interest component. The Bank has option to reduce or increase the EMI or extend the repayment period consequent upon changes in interest rate. FIXED RATE Interest on the amount of loan will be applied at the rate of ______ % p.a. at monthly rests, calculated on the highest monthly balance. Further, in the event of major volatility in interest rate or the fixed rate falling below the Base Rate stipulated by the Bank from time to time or for any other reason, whatsoever during the period of this agreement, the Bank may at its sole discretion alter the rate of interest suitably. Bank shall be the sole judge to determine whether such conditions exist or not. (To be deleted where floating rate of interest is applicable) FLOATING RATE Interest on the amount of loan will be applied at the rate of ____% margin above the Base Rate which is presently _____% p.a. and thus the present effective rate of interest being ____% p.a. calculated on daily balance of the loan amount at monthly rests, provided that the Bank shall at any time, and from time to time be entitled to vary the Margin and the Base Rate at its discretion. Depending on variation of Base Rate and Margin, the effective rate of interest shall vary periodically and the borrower shall be liable to pay the effective rate of interest. (To be deleted where fixed rate of interest is applicable) Such revised rate of interest shall always be construed as agreed to be paid by the borrower(s) and hereby secured. Borrower(s) shall be deemed to have notice of change in the rate of interest when the changes are notified at/displayed at the branch or published in a newspaper or in the website of the Bank or made through the entry in the passbook or the statement of account or by debit to the loan account. 120

Without prejudice to the Banks other rights and remedies, the Bank shall be entitled to charge at its own discretion such enhanced rate of interest on the loan account(s) either on the entire outstandings or on a portion thereof as it may fix for any default or irregularity on the part of the borrower(s) which in the opinion of the Bank warrants charging of such enhanced rates of interest for such period as the Bank may deem fit. Besides, the Bank shall also charge a penalty, the rate of which shall be at the discretion of the Bank, for every bounced cheque for any reason whatsoever in addition to the enhanced rate of interest as applicable. 6.(a) Further, the Bank shall, at any time, be entitled to give notice to the Borrowers of its intention to charge and may thereafter charge interest at such higher rate than the rate hereinbefore mentioned, as the Bank may specify. The Equated Monthly Instalments will have to be paid till the entire loan and the interest is fully repaid. Further, the amount of Equated Monthly Instalment may change/increase as may be decided by the Bank. 6.(b) The Bank reserves the right to levy prepayment charges of 2% of the amount prepaid in excess of normal EMI dues if: I. II. III. the loan is taken over by any other bank/ financial institution Or the loan is repaid before expiry of half of the agreed repayment period Or partial repayment is being made in the first year.

7.

On demand the Borrowers agree to deliver to the Bank post-dated cheques for the monthly instalments and the Borrowers warrants that the cheques will be honoured on first presentation. Any non-presentation of a cheque due to any reason will not affect the liability of the Borrowers to pay the monthly instalments or any other sum. The Borrowers agree to forthwith replace the cheques/issue fresh cheques, if required by the Bank. The Borrowers shall not be entitled to call upon the Bank to refrain from presenting any cheque for payment and if the Borrowers does so, the Bank shall nevertheless be entitled to present the cheque for payment and in the event of dishonour the provisions under Chapter XVII of the Negotiable Instruments Act, 1881, shall apply. As security for the repayment of Loan together with interest at the rates stipulated above and any other charges, costs and expenses payable to or 121

8.

incurred by the Bank in relation thereto, the Borrowers hereby creates a first charge in favour of the Bank by way of hypothecation of the vehicle together with all its components, accessories, attachments etc. specified and described in the Schedule below, purchased/to be purchased by the Borrowers with the Loan wherever it shall be kept. The borrowers hereby agree that the vehicle shall be registered in the name of 1st applicant only. 9. The Borrowers shall not during the continuance of this security create any charge or encumbrance of any kind over the hypothecated vehicle nor shall dispose of the same without repaying in full the Loan amount, interest, costs, charges and expenses secured here under.

10.(a) The Borrowers shall keep the hypothecated articles in good working order, repair and condition and shall permit the officers and other persons deputed by the Bank to have access to and inspection of it if required by the Bank. 10.(b) In case of hypothecation of vehicles the Banks charge shall be registered with appropriate Road Transport authority and the Borrowers undertakes to get such hypothecation to the Bank marked in Registration book of the vehicle immediately after purchase of the vehicle. 11. The Borrowers will intimate immediately after purchase of the vehicle the location where the vehicle will be garaged. Any change in address/location of the garage will be intimated forthwith. The Bank its agents and nominees shall be entitled at all times to enter any place where the hypothecated vehicle is garaged, and on the occurrence of either of (i) default in payment of more than one instalments of bouncing of more than one post dated cheques, or (ii) any other event which in the opinion of the Bank will adversely affect the security available to the Bank, they will be authorized to take possession of/seize the vehicle and eventually sell it off in auction/private treaty for satisfaction of the Banks dues. The Bank shall be entitled at all times to apply any other money or moneys in its hand stand to the credit of or belonging to the Borrowers in or towards payment of any amount for the time being payable to the Bank and recover at any time from the Borrowers by suit or otherwise the balance remaining payable to the Bank. The Bank also preserves the right to note lien on other deposits of the Borrowers as additional security for the loan.

12.

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13.

Where ever a vehicle has been purchased out of the aforesaid loan, the Borrowers shall keep the vehicle comprehensively insured in his/her name with an Insurance Company approved by the Bank for the market value or to the extent of at least 10% over the loan amount outstanding, whichever is higher and the Banks interest as a hypothecatee should be noted in the certificate of insurance and the insurance policy. The Borrowers shall produce to the Bank from time to time relevant Policy or Policies for its inspection and also proper evidence to the satisfaction of the Bank and the Borrowers hereby undertakes punctually to pay the premium due for such insurance and to produce the receipts for the premium paid to the Bank for its inspection from time to time and if the Borrowers should fail to keep insured the said vehicle or to produce such policy or policies and receipts to the Bank on demand, the Bank shall be at liberty but not bound to effect such insurance and pay such premium at the expense of the Borrowers and all expenses to be incurred by the Bank in this connection will be made by debit to the Borrowers loan account and will form part of the Borrowers indebtedness to the Bank and secured fully by the hypothecation hereby created. The Borrowers agree that any such sum received under any such insurance shall be applied in or towards liquidation of the amount due to the Bank on account of the said Loan interest and other charges as aforesaid and in the event of there being a surplus the same shall be refunded to the Borrowers.

13(a) The borrower (s) hereby further agree that as precondition of the loan advances given to me/us by the Bank, that in case of default in repayment of the loan /advances or in the repayment of the interest thereon or any of the agreed instalment of the loan on due date/s, the Bank and/or the Reserve Bank of India will have an unqualified right to disclose or publish my/our name(s) as defaulter in such manner and through such medium as the Bank or Reserve Bank of India in their absolute discretion may think fit. 13 (b) The borrower/s hereby agree and give consent for disclosure by the Bank all or any (a) information and data relating to the borrower/s (b) information or data relating to any credit facility availed or/to be availed by the borrower/s and default, if any, committed by the borrower/s in discharge of his/their such obligation as the Bank may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau (India) Ltd., and any other agency authorized in this behalf by RBI. Further, the borrower/s declare that the information and data furnished by him/them to the Bank are true and correct and also agree that the Credit Information Bureau (India) Ltd. and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by 123

them and further that the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them to Banks/Financial Institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf. 14. The Borrowers agree that if any instalment due hereunder shall not be paid on due date in the manner set out in clause 6/7 here in above the agreement of the Bank to accept repayment of the said loan by instalments shall at the option of Bank forthwith determine and the whole balance of the said loan unpaid at the date of such default shall immediately thereupon become payable to the Bank. This Agreement shall operate as a continuing security for all monies, indebtedness and liabilities aforesaid due by the Borrowers to the Bank. It is agreed between the parties that at the written request of the Borrowers the Bank may transfer the account to any of the branches within India from time to time provided sufficient notice in advance is given by the Borrowers to the Bank. The Bank shall also be entitled to transfer the loan account to any other branch of the Bank after due notice to the Borrowers. Nothing contained in this Agreement shall be construed as excluding the general lien of the Bank for any balance due to the Bank of any account or in respect of any liability of the Borrowers to the Bank. Nothing herein contained shall prejudice any rights or remedies of the Bank in respect of any other present or future security guarantee obligation or decree for any indebtedness or liability of the Borrowers to the Bank.

15.

16.

17.

SCHEDULE REFERRED TO ABOVE (Details of article(s) /vehicle to be purchased)

(I)

__________________________

(2)

__________________________

Dated this .. day of 200

(BORROWERS)

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Annexure- Car VI Guarantee Agreement (To be stamped as an agreement in accordance with the Stamp Act in the State in which this document is executed. Not to be attested.)

STATE BANK OF INDIA, Dear Sir/Madam,

Place Date.

In consideration of the Sate Bank of India (hereinafter referred to as Bank) having agreed to grant/granted at my / our request and advance of Rs (Rupees only) by way of loan to Shri/Smt /Kum..son of/wife of/daughter of Shri.. (hereinafter referred to as the Borrower) for . (purpose of loan) under the Banks Scheme. I/We hereby guarantee repayment of all moneys at any time payable by the Borrower to the Bank in respect of the loan made to the Borrower with interest thereon and the due performance and observance by the Borrower of the terms pertaining to the loan and the payment of all costs and expenses incurred by the Bank in relation thereto and I /We also agree to pay and make good to the Bank on demand all losses, cost, damages and expenses occasioned to the bank by reason of non-payment of the said moneys ,costs and expenses or any part thereof or the breach ,non-performance or nonobservance of any of the terms as aforesaid .subject to the terms and conditions hereinafter contained : That my/our liability under this guarantee is co-extensive with that of the Borrower as if I/we were the principal debtor(s) of the Bank and the amount due under this agreement will be recoverable from me /us without any recourse to the Borrower and it shall not be obligatory on the bank to call upon the Borrower to pay the amount first or to take any action against the Borrower before enforcing the guarantee against me /us nor shall it be necessary for the Bank to join the Borrower in any suit against me/us . I/we further agree that I/we shall not terminate the guarantee and/or any other of the undertakings contained herein unless a sufficient notice of the intention on my/our part to terminate the guarantee had been given to the Bank and a reasonable time is allowed to lapse thereafter for such 125

termination to take effect. Provided, if the Bank deems it necessary to terminate the guarantee only after the satisfaction of it dues by the Borrower the guarantee will terminate only when the Bank intimates to me/us in writing that Borrower, has paid in full all the dues to the Bank. I /we further agree that the guarantee given hereunder is enforceable notwithstanding any dispute or any suit that may be pending between the Bank and the Borrower. 2. That the guarantee given hereunder shall be continuing one notwithstanding that any of the account(s) opened in respect of the loan may at any time or from time to time be brought to credit /nil until notice in writing that the same is /are closed is given by the Bank to me/us. That on demand being made by the Bank for the payment of any amount under this guarantee the same shall be paid without demur or protest by me /us and the notice for the claim sent to me /us shall be conclusive of the amount due from me /us under the terms of the guarantee. The Bank shall be at liberty and without the consent or knowledge of me/us at any time or from time to time to grant to the Borrower or any person liable for him any time or indulgence and to determine enlarge or vary the amount of the loans and advances to take or not to take and if taken to vary exchange or take other security or release or part with any securities held or to be held by the Bank for or on account of the loans and advances or any part thereof and to compound or make any other arrangement with the Borrower or any person so liable with or for the Borrower without releasing or discharging and /or in any manner affecting my/our liability under the guarantee. That the guarantee hereby given is independent and distinct from any security that the Bank has taken or may take in any manner whatsoever whether it be by way of hypothecation, pledge and /or mortgage and /or any other charge over goods, book-debts, movables and other assets and/or any other property movable or immovable and that I/We have not given the guarantee upon any understanding, faith or belief that the Bank has taken and /or may hereafter take any or other such security and that notwithstanding the provisions of Sections 140 and 141 of the Contract Act. 1872 or any other provision of that Act or any other law, I/We will not claim to be discharged to any extent because of the Bank s failure to take any or other such security or in requiring or obtaining any or other such security or losing or parting with for any reason whatsoever including reasons attributable to its default and negligence benefit of any other such security or any rights to any or other such security that have been or could 126

3.

4.

5.

have been taken and in the event of the Bank so losing or parting with security the guarantor (s) shall be deemed to have consented to acquiesce in the same. 6. That without prejudice to the effect in any manner whatsoever of the foregoing clause. Where the loans and advances are secured or intended to be secured in any manner whatsoever by or over any property movable or immovable whatsoever by way of hypothecation, pledge and /or mortgage of and /or any charge over goods, book-debts, movable and other assets by or under any agreements or letter (s) or otherwise I /We will not be concerned in any manner with any or other such security that the Bank has taken or proposes to take or may take and that the Banks failure in requiring or obtaining any or other such security or in the observance or performance of any of the stipulations or terms contained in any agreements if any or letter(s) and the default of the Bank in requiring or endorsing the observance or performance of any of the said stipulations or terms shall not have the effect of releasing me/us from my/our liability and or of prejudicing the Banks rights or remedies against me /us under the Agreement or otherwise . That the Bank shall be at liberty to take other securities for the loans and advances or any part thereof and to release or forbear to enforce all or any of its remedies upon or under such securities and any collateral security or securities now held by the Bank and that no such release or forbearance as aforesaid shall have the effect of releasing me/us from my/our liability or of prejudicing the Banks rights and remedies against me/us under the terms of the guarantee and that I/We shall have no right to the benefit of any other security that may be held by the Bank until the claim of the Bank against the Borrower in respect of the loans and advances and of all the other claims (if any) of the Bank against the Borrower on any other account whatsoever shall have been fully satisfied and then in so far only as such security shall not have been exhausted for the purpose of realising the amount of the said Banks claims and rateably only with other guarantors or other persons (if any) entitled to the benefit of such securities respectively . That notwithstanding anything contained in Section 133 of the Contract Act or in any other provisions of law I/We will not claim to be discharged to any extent because of the Bank varying any of the terms and conditions whether contained in any Agreement(s) or letter(s) and on which the loan has been made to the Borrower and for this purpose and in particular any excess drawings over and above the sanctioned limit of the loans and advances allowed by the Bank at or without the specific request of the borrower shall not discharge me/us from my/our liability under this guarantee. 127

7.

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The Guarantor(s) hereby agree (s) that notwithstanding any variation made in the terms of the Hypothecation Agreement/Agreement* etc. dated Or any other Agreement or letter inter alia including variation in the rate of interest, extending the date of payment of the instalments and on which the loan has been made or any composition made between the Bank and the Borrower or any agreement on the part of the Bank to give time to or not to sue the Borrower or the Bank parting with any of the securities given by the borrower the Guarantor(s) shall not be released or discharged of his/their obligations under this Guarantee provided that in the event of any such variation or composition or agreement the liability of the Guarantor(s) shall notwithstanding anything herein contained be deemed to have accrued and the Guarantor(s) shall be deemed to have become liable, hereunder on the date or dates on which the Borrower shall become liable to pay the amount/amounts due under the above referred to Agreements as a result of such variation or composition or agreement. (* Delete whichever is not applicable.) That if the Borrower shall become insolvent, bankrupt or makes any arrangement or composition with creditors the Bank (notwithstanding payment to the Bank by me/us or any other person of the whole or any part of the amount hereby secured) rank as creditor and may prove against the estate of the borrower for the full amount of all the banks claims against the borrower or agree to and accept any composition in respect thereof and the Bank may receive and retain the whole of the dividends, compensation or other payments thereof to the exclusion of all my/our rights as guarantor(s) for the Borrower in competition with the Bank until all the Banks claims are fully satisfied and I/We will not be paying off the amount payable by me/us or any part thereof or otherwise prove or claim against the estate of the Borrower until the whole of the Banks claims against the Borrower, in respect of all the liabilities whatsoever have been satisfied and the Bank may enforce and recover payment from me/us of the full amount payable by me/us notwithstanding any such proof or composition as aforesaid. The guarantor shall not stand discharged by transfer of the loan account of the Borrower from one branch to another and such transfer of the account shall not be deemed as a variation of the terms of the contract. The guarantor(s) hereby agree and give consent for disclosure by the Bank all or any (a) information and data relating to the guarantor(s) (b) information or data relating to any credit facility availed or/to be availed by the guarantor(s) and default, if any, committed by the guarantor(s) in discharge of his/their such obligation as the Bank may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau (India) 128

9.(a)

9.(b)

10.

Ltd., and any other agency authorized in this behalf by RBI. Further, the guarantor(s) declare that the information and data furnished by him/them to the Bank are true and correct and also agree that the Credit Information Bureau (India) Ltd. and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them and further that the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them to Banks/Financial Institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf. 11. That any notice by way of demand or otherwise may be given by the bank to me/us sending the same by post and addressed to me /us and the notice shall be deemed to have been given at the time when it will be delivered in the ordinary course of post and it will be sufficient in order to prove service of any such notice and to prove that the envelope containing the same was posted and the certificate signed by any officer duly authorised by the Bank in this regard that the envelope was posted, shall constitute such proof. That the guarantee herein contained shall not be determined or affected by the death of the guarantors hereunder but shall in all respects and for all purposes be binding and operative on his/their successor(s), heir(s) and assigns until repayment of all moneys secured by and due to the Bank under the loan granted to the Borrower. We further agree that we shall be jointly and severally liable to the bank for the entire outstanding in respect of the loan and that the Bank shall be at liberty to sue either or any of us in respect of such liability without joining the other or others of us and notwithstanding any decree in any such suit subsequently to sue the other or others of us and to proceed to judgement and execution at the option of the Bank until its claim is fully satisfied.

12.

13.*

Signed and delivered by the said: Shri/Smt.. (Guarantor). Shri/Smt.. (Guarantor). Place: . Date: .. (* Delete whichever not applicable) 129

To be addressed to both 1st and 2nd applicant Annexure-Car VII Arrangement Letter (For financing consumer durables/two wheelers/cars) To, _______________________ _______________________ _______________________ _______________________ (Name & Address of the Borrower) Ref No: Dear Sir/Madam, Personal Segment Advances Loan for purchase of Certified Pre Owned Car Term Loan of Rs.. With reference to your application dated ., we hereby sanction you a Term Loan of Rs. (Rupees..only) on the following terms and conditions: 1. Purpose: The loan is sanctioned to you . 2. Margin: % for the purpose of purchase of Date

3. RATE OF INTERST FIXED RATE OF INTEREST Interest on the amount of loan will be applied at the rate of ______ % p.a. at monthly rests, calculated on the highest monthly balance. Further, in the event of major volatility in interest rate or the fixed rate falling below the Base Rate stipulated by the Bank from time to time or for any other reason, whatsoever during the period of this agreement, the Bank may at its sole discretion alter the 130

rate of interest suitably. Bank shall be the sole judge to determine whether such conditions exist or not. In the event of a default in payment or any irregularity in the account, the Bank reserves the right to levy a higher rate of interest, as it deems fit. FLOATING RATE OF INTEREST Interest on the loan amount will be applied at the rate of ____% margin above the Base Rate which is presently _____% p.a. and thus the present effective rate of interest being ____% p.a. calculated on daily balance of the loan amount at monthly rests, provided that the Bank shall at any time, and from time to time be entitled to vary the margin and the base rate at its discretion. Depending on variation of Base Rate and Margin, the effective rate of interest shall vary periodically and the borrower shall be liable to pay the effective rate of interest. You shall be deemed to have notice of changes in the rate of interest when the changes are notified at/displayed at the branch or published in a newspaper or in the website of the Bank or made through the entry in the passbook or the statement of account or by debit to the loan account, etc. and you are liable to pay such revised rate of interest. The Bank has option to reduce or increase the EMI or extend the repayment period consequent upon changes in interest rate. Without prejudice to the Banks other rights and remedies, the Bank shall be entitled to charge at its own discretion such enhanced rate of interest on the loan account(s) either on the entire outstandings or on a portion thereof as it may fix for any default or irregularity on the part of the borrower(s) which in the opinion of the Bank warrants charging of such enhanced rates of interest for such period as the Bank may deem fit.

Repayment : The loan is to be repaid in Equated Monthly Instalments of Rs each till the entire loan with the interest is fully repaid. The first instalment commences from the month following the month of purchase of above said article(s)/vehicle. Wherever repayment is through post-dated cheques, the cheques should be dated prior to the 7th of every month. 4. Prepayment Charges: The Bank reserves the right to levy prepayment charges of 2% of the amount prepaid in excess of normal EMI dues if: I. the loan is taken over by any other bank/ financial institution 131

II. III. 5.

Or the loan is repaid before expiry of half of the agreed repayment period Or partial repayment is being made in the first year. Security :

The loan will be secured by: a) Hypothecation of the aforesaid two wheeler/car purchased out of the loan amount in favour of the Bank. Noting of Banks hypothecation charge in the Books of the RTO and the Registration Book will be essential in respect of finance for two / four wheeler vehicles. You will also be required to furnish a copy of the Registration Book for Banks record after recording Banks hypothecation charge therein by the RTO. b) Third party guarantee of the spouse.* c) Third party guarantee of..* d) Pledge of securities listed hereunder.* 6. Insurance: The vehicles shall be kept comprehensively insured by you in your name for the market value or at least 10% above the loan amount outstanding, whichever is higher. Banks hypothecation charge is to be noted on the insurance policy and a copy of the policy is to be delivered to the Bank. 7. Inspection (for vehicles): The Bank reserves its rights to inspect the vehicle and registration documents at regular intervals. 8. Legal expenses, etc. : All expenses like valuers fees, insurance premia, stamp duty, registration charges and other incidental expenses incurred in connection with the loan are to be borne by you 9. Processing charges: Processing charges of Rs (Rupees . only) are payable immediately. 10. Disbursement: The loan amount will be disbursed by means of an account payee Bankers cheque/demand draft in the name of the supplier/dealer after execution of 132

prescribed security documents. Please call on us on any working day to execute the documents. The loan is also subject to other terms and conditions as mentioned in the documents(s) executed/to be executed in connection with the loan and as may be prescribed by the Bank from time to time. The duplicate copy of this arrangement letter may please be returned to us duly signed by you and guarantor(s) in token of acceptance of the terms and conditions detailed herein within a period of 45 days from the date of this letter.

Yours faithfully,

Branch Manager (* Delete whichever not applicable) Received the original. Terms and conditions accepted Borrower(s) Date: Terms and conditions accepted Guarantor(s) Date:

(All pages of this Arrangement Letter are required to be stamped and initialled by the Bank. All pages of the copy returned by the borrower are required to be signed by borrower and is to be retained with the document.)

133

To be taken separately if both the 1st and 2nd applicants are employed Annexure-Car VIII The Branch Manager, State Bank of India, .. Branch, Dear Sir/Madam, SCHEMES FOR LOANS FOR PURCHASE OF CERTIFIED PRE OWNED CAR I have availed the benefit of the aforesaid scheme. At present I am serving as .. (Designation) in . Department at .. I am authorised to draw and disburse my own salary along with the salaries of the employees working in this office/establishment/department. I undertake to deposit my salary supported by the pay bill every month for credit to the Savings Bank Account maintained at your branch till liquidation of the amount advanced to me. I further authorise you to deduct a sum of Rs per month beginning from the salary for the month of . from the aforesaid account for adjustment towards the balance outstanding in the loan account till liquidation. I hereby authorise State Bank of India .. Branch to collect and receive any amount payable to me including amount payable towards Provident Fund, Gratuity, Pension or similar dues on my behalf in the event of my retirement / resignation, termination or discontinuation of my service for any reason whatsoever. I further agree that the aforesaid authority shall be irrevocable till the entire amount of loan together with interest stands liquidated. I further undertake to execute necessary authorisation / documents as deemed just and necessary by the Bank in accordance with the scheme in the event of my ceasing to be drawing and disbursing authority by virtue of my transfer or otherwise. Place: Date:

....... SIGNATURE 134

To be addressed to both the applicants in the same Annexure Annexure A Under Certificate of Posting State Bank of India Branch Shri/Smt./Kum . No. Dear Sir/Madam, YourLoan A/c No..with us Please refer to your above loan account with our Branch. 2. With a view to discourage irregularity/over dues in loan account either on account of non payment of EMI for whatever reason or outstanding in the overdraft account exceeding the drawing power, it has been decided to levy enhanced interest rate (hereinafter referred to as penal rate of interest) at the following rates. If the irregularity exceeds EMI or Installment amount, for a period of one month , then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part installment or part EMI remains overdue, then penal interest should not be levied. Dated :

3. Accordingly, we request you to ensure that your loan account(s) with us do not become irregular, for any reason whatsoever. Yours faithfully, Branch Manager

135

To be sent to the 1st and 2nd applicant separately Annexure B Under Certificate of Posting

State Bank of India Branch Shri/Smt./Kum . No. Dated:

Dear Sir/Madam, YourLoan A/c No..with us Equated Monthly Instalment (EMI) for the month of..in respect of your captioned account, which was due on(date) has not yet been remitted, which resulted in irregularity in your account* Your above overdraft account became irregular on.. (Date)* 2. As you are aware, irregularity in the account attracts a penal interest @ 2% p.a. (over and above applicable rate of Interest) on the overdue amount for the period of default. With a view to avoid penal interest, please arrange to deposit an amount of Rs. (*Amount of EMI/ or irregularity) on or before..(date) failing which penal interest @ 2% p.a. on the overdue amount will be levied, over and above the applicable rate of interest, for the period the account remains irregular. Yours faithfully,

Branch Manager

* delete whichever is not applicable 136

Annexure C Date: State Bank of India ______________Branch ____________________ ____________________ Dear Sir, Subject: - Sale of Certified Pre- Owned cars We at ---------------------- (Dealer name) carry on the business of purchase and sale of pre-owned (used) cars. We selectively refurbish a portion of our stock -----------------------(Brand name & model of the car) and after certification by the engineer from ------------------------(Maruti True Value/ Hyundai Advantage) market and sell these cars to the intending purchaser under the mark '---------------------(logo of Maruti True Value' or Hyundai Advantage etc) . Before we purchase pre-owned car due care is taken to verify the ownership status of the car and identity and address proof of the intending seller(s). After said verification we make payment on account of consideration for sale to the said intending seller(s) against which the said intending seller(s) issue the payment receipt in the name of M/s. (Dealer Name). The intending seller(s) hand over possession of their pre-owned vehicle to us against which we issue delivery receipt to the intending seller(s). The said intending seller(s) fills its particulars in FORM 29 (NOTICE OF TRANSFER OF OWNERSHIP OF MOTOR VEHICLE) and FORM 30 (APPLICATION FOR INTIMATION AND TRANSFER OF OWNERSHIP OF MOTOR VEHICLE) as prescribed under the provisions of the Central Motor Vehicles Rules 1989. The intending seller(s) has/have authorized us to sell the cars and execute the required documents on its part and submits the original registration certificate of its pre-owned Vehicle(s) to us. In case any pre-owned Vehicle(s) is hypothecated the intending seller(s) also submit No Objection Certificate from the earlier Finance Company/Banks, as the case may be, to us. At the time of selling any pre owned -------------- (Brand/ Model of the Vehicle(s) which have been refurbished and Certified by --------------- (Maruti True Value/ Hyundai advantage) engineer we raise our invoice upon the buyer. In case any intending buyer of such pre owned Certified ------------- (Brand name/ eg. Maruti / Hyundai Vehicle(s) desires to take loan for purchasing any pre owned ------------(Maruti/ Hyundai/------------- vehicle, we specify the loan amount and the margin money in our invoice.

137

We will provide you the details of ----------------- (eg. Maruti True Value/ Hyundai Advantage etc) Certified pre-owned vehicles like registration no. engine no., chassis no. whether comprehensive insurance is available for the vehicle etc which may become subject matter of sanction of loan by said SBI Bank, as an when the requirement may arise during the course of business. In the event of any claim against you from the earlier owner of the vehicle, we undertake to indemnify and hold you harmless against any claim, loss arising from the ownership of any pre-owned certified -------------------- (eg. True Value Maruti / Hyundai Advantage etc) Vehicle of any intending seller(s) in respect of which SBI Bank may have issued the disbursement cheque equivalent to sanctioned loan amount in the name of --------------------- ( e.g. M/s. ABC Motors) and such expenses, cost as may be incurred by you in contesting such claims. However, the said indemnity will cease forth with on the day on which ownership of any such preowned -------------------------(True Value Certified Maruti/ Hyundai Advantage etc) Vehicle(s) is transferred in favour of the buyer and security is created in favour of you by recording charge of hypothecation in the registration certificate in your favour. That in light of aforesaid facts it is requested that you may issue cheques for loan amount sanctioned by you in respect of any pre owned Certified -------------------- ( eg. True Value Maruti/ Hyundai Advantage) Vehicle(s) sold by us under mark "logo of -------------------------- (e.g. Maruti True Value'/ Hyundai Advantage in the name of --------------------------------- (Dealer name. e.g. M/s. ABC Motors) A/c._________. Such payment made by you to ------------------------ (Dealer name e.g. M/S ABC Motors) will discharge you from all liabilities arising out of the transaction. Thanking you, Yours sincerely,

(Dealer Name) (Authorised Signatory) (eg. For ABC Motors Ltd) (Circular No. PBBU/AL/1/16 dated November 22, 2010)

138

SBI CAR LOAN-OVERDRAFT CAR LOAN-OVERDRAFT SCHEME FOR NEW VEHICLE 1. Purpose For purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs in the form of an overdraft account. 2. Eligibility: Age: 21-65 years Permanent employees of State/Central Govt., Public Sector Undertakings, corporations, private sector companies, and reputed establishments are eligible under the scheme. Professionals, self-employed and others who are income tax assesses and persons engaged in agriculture and allied activities can also avail of the loan facility. Requirements of high net worth salaried executives of multinationals can also be considered. 2.2 Salaried: Net annual income Rs.250000 /- and above. Net monthly income should be at least 2 times of EMI.

(Clarification: Net monthly income will be equivalent to monthly Gross salary net of all statutory deductions like Income Tax and compulsory deductions like Employee Provident Fund etc. No other deductions should be deducted from the monthly Gross Salary to arrive at the NMI. Accordingly, NAI will be 12 times of NMI as defined above.) 2.3 Self-employed and Professionals: Net annual income Rs.250000 /- and above for the last year as per income tax return. Persons engaged in agriculture and allied activities: Same as for Selfemployed and Professionals except that income tax return will not be required.

2.4

(Clarification: Regular income from all sources can be considered provided the sanctioning authority is satisfied with the proof of income. Income of spouse, father, mother, brother, sister, son and daughter may be included for arriving at the loan eligibility (any one). The person whose income is included will join as a coborrower. The maximum number of applicants should be restricted to two.)

139

3. Authorised Branches: 3.1 It has been decided by the appropriate authority to authorize All scale III & above branches, all Super Circle of Excellence branches, all PBBs, all District Head Quarter branches, Project Area branches and all Branches authorised by the AGM (RBOs) to process, sanction and disburse car loans till 30.9.2012. (Circular No. PB/AL/1/22 dated 30th August, 2011) The following should be ensured:a. Mapping of these branches to the dealers of different car manufacturers have to be ensured. Number of car loans per branch have to be given as targets and monitored; b. The identified branches have to process the car loan applications through LOS, where in score cards/ CIBIL checks have already been automated; c. The loans will be controlled by the controllers; d. RACPCs will accept the documents from the branches at fortnightly intervals for follow up and maintenance; e. The RC book and the insurance certificate etc will be followed up by the respective RACPCs in BPR centres and by the sanctioning branches in Non BPR centres. (Circular. No. PB/AL/1/33 dated 29th March, 2011) 3.2 The branches other than those mentioned under 3.1 above will source the car loan applications and get them processed and sanctioned through respective CPCs. 4. Loan Amount

4.1 The maximum loan amount that can be granted would be restricted to 48 times the net monthly income of salaried persons (i.e., net of all deductions including actual monthly tax deductions at source). In case of others, maximum loan amount would be 4 times the net annual income (i.e., income as per latest income tax return filed less taxes payable). For agriculturists the annual net income should be arrived at by branches, based on the nature of their activity, (i.e., farming, dairy, poultry, orchards) land holding, cropping pattern, yield, etc. and average level of income derived there from in the area. Regular income from all sources can be considered provided the sanctioning authority is satisfied with the proof of income. The income of spouse can be included provided the spouse guarantees the loan. For new vehicles, there is no ceiling in loan amount. However the minimum Loan amount would be Rs.3 lacs for availing OD. 140

4.2

Depending on Net Annual Income EMI/NMI Ratio will be as under: Net Annual Income Upto Rs. 5 Lakhs Above Rs. 5 Lakhs and upto Rs.10 Lakhs Above Rs. 10 Lakhs EMI/NMI Ratio should not exceed 50% should not exceed 60% should not exceed 75%

4.3 However, the Branch Manager/RACPC head or the sanctioning authority, where such sanctioning authority is not below the rank of Chief Manager, will have the discretion to grant a higher loan, subject to EMI/NMI percentage not exceeding 60% in case of tie-ups with reputed PSUs/Corporates or institutions or owing to strategic reasons, for net annual income up to Rs. 5 lacs. 5. 5.1 Margin For All Loans: 15%

5.2 The total cost of vehicle would be inclusive of one time road tax, registration, insurance, etc. 5.3 The sanctioning authority will have discretion to reduce the margin by 5% where check off facility from a reputed employer is available. In case of customers under Corporate Salary Package/tie-up, margin is reduced by 5% and loan is available up to 90% of the on road price of the vehicle. Repayment The loan should be repaid in suitable monthly/quarterly instalments acceptable to the customer in such a manner that the loan is liquidated within a period of 7 years. The customer will have option for payment in shorter duration. In case of Car Loans to agriculturists, the periodicity of instalments for repayment should be decided upon the merits of each case, on a realistic basis, coinciding with harvest of the crop at half yearly/yearly intervals or coinciding with the generation of income from ancillary agricultural activities pursued by the borrower e.g. dairy/poultry etc. or in monthly/quarterly instalments in case of other regular sources of income. 141

5.4

6. 6.1

6.2

6.3

The repayment should be fixed on the basis of equated instalments, preferably with a check off facility in the case of salaried persons. The Equated Instalment will be determined on the basis of the current rate of interest. Where check-off facility is not available post-dated cheques should be obtained. The procedure for obtaining and custody of post-dated cheques has been circulated vide letter no. PB/106A/381. Under check-off arrangement, an Irrevocable Letter of Authority, as per Annexure-Car II, is required to be obtained from the borrower (employee) concerned and a letter of undertaking is to be taken from the borrowers employer as per Annexure-Car III. In case of Govt. officers, who are themselves the drawing and disbursing authorities and take car loans, a Letter of Undertaking on the lines of Annexure- Car VIII need only be obtained. Seizure of vehicle: Whenever a cheque is dishonoured or an instalment due remains unpaid for the first time it should be immediately brought to the notice of the borrower by issuance of a notice, as per instructions contained in Corporate Centre letter no. PB/AL/1/169 dated March 17, 2006. After disbursement of the loan and completion of required formalities including hypothecation of vehicle, borrowers will be eligible for issue of cheque book, ATM-Debit Card and Internet Banking facility for operation in the loan account. However, it should be strictly ensured that no overdrawing is permitted in the account in excess of the Drawing Power. The extant schedule of service charges applicable to Current Accounts will also be applicable to these loans. Interest: Floating rates only: 50 bps higher than the normal car Loan scheme under Term Loan All loans should be given only on a floating rate basis, i.e., the effective interest will increase or decrease with every increase or decrease in Base Rate or whenever the rate of interest on car loans are revised without changing Base Rate, this should be advised to the borrower(s). While generally the Equated Monthly Instalment need not be changed with every change in the interest rate, should the borrower seek an EMI reduction due to a rate reduction the same may be permitted if the account is a Standard 142

6.4

6.5

6.6

6.7

6.8

6.9

7. 7.1

7.2

Asset and the loan amount outstanding is at least Rs.5 lacs and the rate reduction is of 1% or more. 7.3 The above facility will be permitted only once during the currency of the loan. 7.4 The Bank also reserves the right to increase the EMI in case of interest rate rise. 7.5 Concession of 0.25% to 0.50% in interest rate is available to the customers who are covered under the Corporate Salary Package depending upon the category of Corporate/Institution, subject to an upper ceiling on concessions, as advised from time to time. 8. Penal Interest 8.1 Extant policy on Penal Interest Rate on was reviewed in the light of the special characteristics and requirements of Personal Segment loans, and the Board has approved the revised Penal Interest Rate Policy for Personal Segment loans as under : Revised instructions for proposed for Extant instructions for standard Personal Segment Loans standard Personal Segment Loans Penal interest should not be No change charged for loans upto Rs.25,000/For loans above Rs.25000/- , For Loans above Rs.25000/- , if the penal interest rate @ 2% on the irregularity exceeds EMI or entire outstanding for the Installment amount, for a period of period of default should be one month , then penal interest would recovered if the EMI remains be charged @2% p.a.(over and above unpaid for a period of 30 days the applicable interest rate) on the from the due date. overdue amount for the period of default. If part installment or part EMI remains overdue, then penal interest should not be levied*. This provision has been made to avoid application of penal interest on Personal Segment Loan accounts where stipulated EMIs or instalments are being paid regularly by the borrowers. *Irregularity in the account in CBS may arise for several reasons : (i) small difference in the EMI amount on the PDC and the actual EMI in the system, (ii) delay of a few days in presenting PDC, (iii) change in loan interest rate not large enough to warrant regeneration of repayment schedule etc.. With even an irregularity of Rs.1, the account status becomes Irregular and consequently, after 30 days, penal interest @2% is charged for the entire loan outstanding. As the EMIs can never take care of the irregular portion, the 143

application of penal interest becomes perpetual, which further increases the irregularity and leads to build up of Indicative NPAs. This also leads to customer complaints and avoidable extra work for the operating staff in investigating and making refunds. 8.2 As per the extant loan policy of the Bank, the sanctioning authority has been given the discretion for sanctioning waiver of application of penal interest for default in payment of interest/installment in case of Term Loans. It has now been decided to add the following qualifiers for use of this discretion:(a) waiver will only be ex-post facto, i.e. the system will levy penal interest as per the rule, and appropriate authority can permit refund, and (b) discretion should be utilized only where the borrowers claims for waiver is merited on facts such as late presentation of PDCs by us, etc. 8.3 Provisions of this policy may also be used by the operating units to correct the existing anomalies in the p-segment loan accounts which have arisen due to application of incorrect penal interest. 8.4 Deputy Managing Director & Group Head (NBG) has been given authority, subject to compliance with RBI guidelines, BCSBI/IBA Code etc. to raise the floor limit above the minimum prescribed by the RBI, (Presently Rs.25,000 as per minimum floor prescribed by RBI) within the Bank according to business exigencies but in compliance with RBI guideline. (Circular No PBBU/HL/PM/9(A) dated 18th June 2010)

9.

Processing Fee

Processing fee will be recovered on the loan amount upfront as under: i) When loans are sanctioned: 0.51% of the loan amount subject to minimum of Rs. 1020/- and maximum of Rs. 10200/-. ii) When loans are rejected: 25% of the Processing Fee will be retained if the application is rejected after pre-sanction survey subject to Minimum of Rs. 510/and maximum of Rs. 2550/-. General Managers of respective Network at Circles can reduce processing fee up to 50%, in respect of car Loans in respect of: short term promotional drives Wherever bulk finance is involved with availability of check-off from reputed employer 144

A report on concession granted in processing fee during the quarter must be submitted to Corporate Centre along with Deployment of Fund Return by the Circles. iii) Concession in processing fee is available to customers under the Corporate Salary Package depending upon the category of Corporate/Institution, as advised from time to time. 10. Security 10.1 a) Hypothecation of vehicle and noting of hypothecation charge in the books of R.T.O. No other security is to be obtained. b) Any other security including third party guarantee may be obtained only when there is a need for credit enhancement e.g. credit score below threshold limit, or any other business consideration. 11. Documentation 1. 2. 3. 4. 5. 6. 7. 8. Application Form Annexure-Car I Irrevocable Letter of Authority from the borrower Annexure-Car II Letter from the Drawing and Disbursing Officer Annexure-Car III Letter forwarding demand draft/Bankers cheque to supplier /dealer Annexure-Car IV Hypothecation Agreement Annexure Car V Guarantee Agreement where applicable Annexure-Car VI Arrangement Letter Annexure-Car VII Irrevocable Letter of Authority where Drawing and Disbursing Officer is himself the applicant Annexure-Car VIII

12.

Insurance

12.1 The vehicle purchased is to be kept comprehensively insured in the name of the borrower for the market value or at least 10% above the loan amount outstanding, whichever is higher, and the Banks interest as a hypothecatee should be noted in the certificate of insurance and insurance policy. A copy of this is to be retained with the loan documents. 12.2 Insurance register is to be maintained. 13. Mode of Disbursement w.e.f. 08.12.2010 :13.1 It has been decided that all car loan proceeds should be disbursed only by way of RTGS/NEFT facility. In case the dealer is maintaining account with the 145

branch of State Bank of India, the proceeds should be credited through CBS system. 13.2 The existing letter from branch forwarding demand draft/bankers cheque to dealer/supplier needs to be suitably modified to provide for payment of proceeds by way of RTGS/NEFT or through CBS system to the dealers. The format of the letter is attached as Annexure- Car-IV. 13.3 The names and addresses of the dealers are available in LOS and therefore the genuineness of the dealer can be checked from LOS. Also the account number of the dealers should be obtained beforehand, and any change in account number should be dealt with caution. (Letter No. PB/AL/1/272 dated 8th December 2010) 14. Prepayment Penalty: Prepayment penalty not applicable for overdraft schemes. 15. Inspection

15.1 For Standard Asset accounts periodical inspections are waived after the initial inspection. However, if there is a default of 2 monthly instalments, inspection would be required. In case of NPA accounts inspections should be made twice a year. 15.2 Inspection register is to be maintained properly. 16. Discretionary Powers To be exercised as per the Delegation of Powers advised by the LHO. 17. General The following papers are to be submitted along with loan application (Annexure-Car I) 1. Statement of Bank account of the borrower for last 6 months. 2. 2 passport size photographs of borrower/guarantor(s). 3. A copy of passport /voters ID card/PAN card. 4. Proof of residence. 5. Latest salary-slip showing all deductions and TDS certificate-Form 16 in case of salaried persons. 6. Copy of Income Tax Return for last two financial years, duly acknowledged by ITO for professionals, self-employed and others. 7. Proof of official address for non-salaried individuals.

146

18.

Processing Time The maximum time schedule for receipt of application and sanction/disbursal of the loan for Branch/RACPC where no immovable property is taken is maximum 2 days. Where immovable property is taken as security the maximum period will be maximum 7 days. For effective monitoring of the above by the Manager P Division/Branch Manager, a register should be maintained along the lines of the register maintained for SIB advances.

19. A. Payment of Service Charges to Car Dealers/Dealer Sales Executive (DSE):With a view to improving our penetration and presence in auto loans market, we have devised a mechanism to compensate the car dealers for the services rendered by them in: iv) v) vi) Explaining the comparative advantages of our product to potential customers, Convincing prospective customers about merits of obtaining car finance from us, Directing business to our branches.

For providing this service, the car dealers are required to deploy manpower for the purpose and in the process incur some direct and indirect expenses. The initiative is addressed to compensate for the services and is also in line with the market practice. Service charge would not be payable for vehicles financed to SBI staff members. In all other cases service charge will be paid as laid down below. The service fee is inclusive of the service tax and the payment of service tax to government is to be made by the car dealer.

19. A.1 For Dealers: A fee of 1.5% of the loan amount will be paid on the business sourced by the dealers. The service fee is inclusive of the service tax. The fee should be paid by the sanctioning authority at the time of the disbursement of the car loan. For DSEs: A fee of 0.25% of the loan amount (maximum Rs.3000/-) will be paid as incentive to Dealer Sales Executives (DSEs) for the loan applications sourced by them at all Centres. The incentive will be paid at the time of the disbursement of loan. 19. A.2 A list of sales executives should be obtained from the car dealers on their letter head, which will be retained at the branch/CPC for identification of the Sales Executives for payment of incentives. 147

19. A.4 The service fee is payable only when loan applications are sourced by Car Dealers to the Bank. The paying offices should maintain proper records of payments for verification and audit by the controlling office and Branch Inspectors.

148

Annexure A Under Certificate of Posting State Bank of India Branch Shri/Smt./Kum . No. Dear Sir/Madam, YourOverdraft A/c No..with us Please refer to your above overdraft account with our Branch. 2. With a view to discourage irregularity/over dues in overdraft account either on account of non payment of EMI for whatever reason or outstanding in the overdraft account exceeding the drawing power, it has been decided to levy enhanced interest rate (hereinafter referred to as penal rate of interest) at the following rates. Dated :

If the irregularity exceeds EMI or Installment amount, for a period of one month , then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part installment or part EMI remains overdue, then penal interest should not be levied. 3. Accordingly, we request you to ensure that your overdraft account(s) with us do not become irregular, for any reason whatsoever.

Yours faithfully,

Branch Manager

149

Annexure B Under Certificate of Posting

State Bank of India Branch Shri/Smt./Kum . No. Dated:

Dear Sir/Madam, YourOverdraft A/c No..with us Equated Monthly Instalment (EMI) for the month of..in respect of your captioned account, which was due on(date) has not yet been remitted, which resulted in irregularity in your account* Your above overdraft account became irregular on.. (Date)* 2. As you are aware, irregularity in the account attracts a penal interest @ 2% p.a. (over and above applicable rate of Interest) on the overdue amount for the period of default. With a view to avoid penal interest, please arrange to deposit an amount of Rs. (*Amount of EMI/ or irregularity) on or before..(date) failing which penal interest @ 2% p.a. on the overdue amount will be levied, over and above the applicable rate of interest, for the period the account remains irregular. Yours faithfully,

Branch Manager

* delete whichever is not applicable

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Annexure - Car I

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Annexure-Car- II CAR LOAN SCHEME: CAR LOAN-OVERDRAFT IRREVOCABLE LETTER OF AUTHORITY ___________________ ______________________ ______________________________ (Address of the disbursing authority) State Bank of Indias *(Name of the Scheme). Employee No...Designation Dear Sir/Madam, I, .. am an employee of your organisation. The State Bank of India,..Branch, have agreed to sanction a overdraft of Rs. (Rupees .. only) to me under their captioned scheme for purchase of.. 2(a) I hereby authorise you to recover by deduction from my salary payable to me by you, a sum of Rs. (Rupees only), every month, beginning from the month of.representing the monthly instalment payable by me to the State Bank of India .. Branch, for the aforesaid overdraft and remit the amount to the aforesaid branch of the Bank. (b) I hereby authorise you to credit/continue to credit my salary to State Bank of India ... Branch, payable to me by you every month, since the monthly instalments for repayment of the aforesaid overdraft are to be recovered by the..Branch of the SBI by debit to my savings Bank/Current Account No..with them, in accordance with an undertaking furnished by me to the Bank. 3.In case of my death, retirement, resignation or discontinuing the service for any reason, I hereby authorise you to pay an amount payable on my account including amount payable by way of terminal benefits like P.F. and gratuity by reason aforesaid, to State Bank of India,.. Branch, towards the balance

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outstanding in the aforesaid overdraft account together with interest costs and /or any monies as may be due to the Bank in respect of the aforesaid loan. 4.I hereby agree that I shall not be entitled to withdraw or revoke this authority even in case of my transfer, or otherwise, until the whole of my debt inclusive of interest etc. to the State Bank of India ... Branch is liquidated, and written consent of the Bank is obtained. Yours faithfully, Witness: Signature. Signature Full NameFull Name.. DesignationDesignation Branch Branch/Dept. DateDate ... Note: Delete 2(a) or 2(b) whichever is not applicable.

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Annexure-Car- III CAR LOAN SCHEME: CAR LOAN-OVERDRAFT The Branch Manager, State Bank of India, .. Dear Sir/Madam, State Bank of Indias scheme of Shri/Smt./Kum. . S/o /D/o /W/o SHRI.. IRREVOCABLE LETTER OF AUTHORITY We certify that Shri/Smt. is a permanent employee of this organisation drawing gross salary of Rs. per month. 2.In view of your agreeing to grant to him/her a overdraft under the captioned scheme, we have received and noted*: i)The irrevocable letter of authority from the employee, for deducting a sum of Rs.. from his/her salary per month beginning from the salary for the month of .. and remit the same to you for crediting to his overdraft account till we receive further instructions from you. ii)the irrevocable letter of authority from the employee, for crediting his/her salary every month to his/her account with State Bank of India,.. Branch, till we receive further instructions from you. iii)the irrevocable letter of authority in respect of making payment out of any amount payable to the employee including the amount payable by way of terminal benefits like P.F. and gratuity in case of his/her death, retirement, resignation or discontinuing the service for any reason whatsoever, to State Bank of India, .. Branch, towards the balance outstanding in the aforesaid overdraft account together with interest etc., and such payment shall be deemed to be a payment to the employee or on his account.

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iv)the employee agrees that he/she will not be entitled to withdraw or revoke his/her authority, even in case of his/her transfer, until the whole of his/her debt inclusive of interest to the State Bank of India, Branch is liquidated and written consent of the Bank is obtained. 3.In the event of transfer of the employee elsewhere, we undertake to convey the instructions to the transferee office under advice to you, immediately.

Place: Date:

Signature of the officer (Authorised to disburse salary and allowances)

*Note : delete 2(i) or 2(ii) whichever is not applicable.

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Annexure-Car IV Letter from Branch to dealer/supplier To, M/s ___________________ _______________________ _______________________ (Name & Address of the Dealer/Supplier) No. Dear Sir/Madam, Ref: your Performa invoice / letter No. ___________ dated __________for supply of_________________ to Shri / Smt / _______________________________ (1st applicant) Shri / Smt / _______________________________ (2nd applicant) Hereinafter jointly referred to as borrowers. With reference to your Performa invoice/letter no. _______ dated ________, we have today credited your account No. _______ with ______________ (Name of The Bank), ------------- (Name of the Branch)(UTR Number _____________) on behalf of Shri/Smt. ______________________________by Rs._________ (Rupees___________), being the cost of _____________ to be supplied/delivered to Shri/Smt._________________________. Please forward to us your stamped receipt for the amount. The vehicle may be registered in the name of the 1st applicant only. 2. Please note that the amount is to be appropriated specifically towards the purchase prices of the said vehicles. It should not be appropriated by you towards or set off against any other debt or liability due or owing to you by Shri/Smt. _______________________________ (Name of the borrower). Please note that the Bank will have the right to call back the amount if you fail to deliver the vehicle to the above named person against his/her acknowledgement. Date:

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3. Please advise us the full particulars such as engine number/chassis number/year of manufacture etc. of the vehicle delivered to Shri/Smt. ___________________________________. 4. Shri/Smt. ____________________ and Shri/Smt/ ______________________ have been sanctioned by us a Term Loan of Rs. ______________ jointly for purchase of the vehicle. Please, therefore, ensure that the Hypothecation Charge over the vehicle to be supplied to Shri/Smt.____________________ is registered in favour of State Bank of India, ________________ Branch in the books of Regional Transport Officer. Please arrange to obtain a Certificate from RTO to the effect of having registered our Hypothecation charge, which may be forwarded to us for our record. The relative form signed by the borrower and the Bank for this purpose is forwarded herewith. Yours faithfully, Branch Manager (To be filled in and returned to the Branch by the Dealer supplying the vehicle) Vehicle Make : Date of Delivery :

Engine Number :

Chassis Number :

(Signature of the dealer)

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Annexure-Car V Loancum-Hypothecation Agreement (To be stamped as Deed of Hypothecation and Agreement in accordance with the Stamp Act of the state in which the document is executed. Not to be attested.) The State Bank of India having its Branch Office at (Hereinafter called the Bank which expression shall include its successors and assigns) having at the request of Shri / Smt. / Kum Son / Daughter / Wife of at present aged around .. and residing at . (hereinafter, called the Borrower which expression shall include his/her respective heirs, executors, administrators and assigns) agreed to grant to the Borrower a Car Loan Overdraft/ car loan limit (on overdraft basis) of Rs to enable the Borrower to purchase a 4 wheeler vehicle more particularly specified and described in Schedule I hereto ( hereinafter referred to as the vehicle) for his/her personal use as set forth in the Borrowers application dated the . a copy of which is annexed and forms part of this Agreement, such loan to be secured as herein provided.

IT IS HEREBY AGREED AS FOLLOWS: 1. The request for grant of the overdraft by the Borrower shall be deemed to constitute the basis of this Agreement and the loan advanced/to be advanced by the Bank to the Borrower. 2. The Borrower hereby agrees that the overdraft shall, inter alia, be governed by the terms hereof. 3. The Borrower expressly agrees and undertakes to notify the Bank in writing of any circumstance, affecting the correctness of any of the particulars set forth in his application immediately after the occurrence thereof. 4. The Borrower expressly agrees and undertakes that the overdraft shall be used exclusively for the purposes set forth in his application and that no change shall be made therein without the written consent of the Bank. 5. The Borrower agrees that the overdraft shall be paid by the Bank to an authorized dealer of the vehicle directly against their invoice on receiving information that the vehicle would be delivered to him on payment/within . days of payment. However, in deserving cases where the borrower has purchased the vehicle with his own funds, the Bank may provide him loan up to ..% of the 165

cost of the vehicle. The Borrower shall produce to the Bank the original receipts for having purchased the vehicle and shall hand over photocopy of the said receipt to the Bank for its record. 6. The borrower shall repay to the Bank, the amount of loan and interest thereon in equated monthly instalments of Rs.___________ each commencing from the month of _________ 20___ till the entire loan with interest is fully repaid. The equated monthly instalment also includes interest component. The Bank has option to reduce or increase the EMI or extend the repayment period consequent upon changes in interest rate. FIXED RATE Interest on the amount of loan will be applied at the rate of ______ % p.a. at monthly rests, calculated on the highest monthly balance. Further, in the event of major volatility in interest rate or the fixed rate falling below the Base Rate stipulated by the Bank from time to time or for any other reason, whatsoever during the period of this agreement, the Bank may at its sole discretion alter the rate of interest suitably. Bank shall be the sole judge to determine whether such conditions exist or not. (To be deleted where floating rate of interest is applicable) FLOATING RATE The applicable interest on the loan amount will be at the rate of ____% margin above the Base Rate which is presently ___% p.a. and thus the present effective rate of interest being ____% p.a. calculated on the daily balance of the loan amount at monthly rests. However, interest on the loan amount will be applied at Base Rate + ____% margin* (discount of ___%), which is presently ____% p.a. for the first year and Base Rate + ____% margin* (discount of ___%), which is presently ___% p.a. for the second and third year. At the end of the third year, the borrower(s) shall be liable to pay floating rate of interest comprising of the Base Rate and Margin then prevailing as may be determined by the Bank. Provided that the Bank shall at all time, and from time to time, be entitled to vary the Discount, Margin and the Base Rate at its discretion. Depending on the variation of Base Rate, Margin and the Discount, the effective rate of interest shall vary periodically and the borrower(s) shall be liable to pay the effective rate of interest. (To be deleted where fixed rate of interest is applicable) * Means net Margin i.e. (Margin Discount). Such revised rate of interest shall always be construed as agreed to be paid by the borrower(s) and hereby secured. Borrower(s) shall be deemed to have notice of 166

change in the rate of interest when the changes are notified at/displayed at the branch or published in a newspaper or in the website of the Bank or made through the entry in the passbook or the statement of account or by debit to the loan account. Without prejudice to the Banks other rights and remedies, the Bank shall be entitled to charge at its own discretion such enhanced rate of interest on the loan account(s) either on the entire outstandings or on a portion thereof as it may fix for any default or irregularity on the part of the borrower(s) which in the opinion of the Bank warrants charging of such enhanced rates of interest for such period as the Bank may deem fit. Besides, the Bank shall also charge a penalty, the rate of which shall be at the discretion of the Bank, for every bounced cheque for any reason whatsoever in addition to the enhanced rate of interest as applicable.

6.(a) Further, the Bank shall, at any time, be entitled to give notice to the borrower of its intention to charge and may thereafter charge interest at such higher rate than the rate hereinbefore mentioned, as the Bank may specify. The Equated Monthly Instalments will have to be paid till the entire overdraft and the interest is fully repaid. Further, the amount of Equated Monthly Instalment may change/increase as may be decided by the Bank. 7. On demand the Borrower agrees to deliver to the Bank post-dated cheques for the monthly instalments and the Borrower warrants that the cheques will be honoured on first presentation. Any non-presentation of a cheque due to any reason will not affect the liability of the Borrower to pay the monthly instalments or any other sum. The Borrower agrees to forthwith replace the cheques/issue fresh cheques, if required by the Bank. The Borrower shall not be entitled to call upon the Bank to refrain from presenting any cheque for payment and if the Borrower does so, the Bank shall nevertheless be entitled to present the cheque for payment and in the event of dishonour the provisions under Chapter XVII of the Negotiable Instruments Act, 1881, shall apply. 8. As security for the repayment of overdraft together with interest at the rates stipulated above and any other charges, costs and expenses payable to or incurred by the Bank in relation thereto, the Borrower hereby creates a first charge in favour of the Bank by way of hypothecation of the vehicle together with all its components, accessories, attachments etc. specified and described in the Schedule below, purchased/to be purchased by the Borrower with the overdraft wherever it shall be kept.

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9. The Borrower shall not during the continuance of this security create any charge or encumbrance of any kind over the hypothecated vehicle nor shall dispose of the same without repaying in full the overdraft amount, interest, costs, charges and expenses secured here under. 10.(a) The Borrower shall keep the hypothecated articles in good working order, repair and condition and shall permit the officers and other persons deputed by the Bank to have access to and inspection of it if required by the Bank. 10.(b) In case of hypothecation of vehicles the Banks charge shall be registered with appropriate Road Transport authority and the Borrower undertakes to get such hypothecation to the Bank marked in Registration book of the vehicle immediately after purchase of the vehicle. 11. The borrower will intimate immediately after purchase of the vehicle the location where the vehicle will be garaged. Any change in address/location of the garage will be intimated forthwith. 12. The Bank its agents and nominees shall be entitled at all times to enter any place where the hypothecated vehicle is garaged, and on the occurrence of either of (i) default in payment of more than one instalments of bouncing of more than one post dated cheques, or (ii) any other event which in the opinion of the Bank will adversely affect the security available to the Bank, they will be authorized to take possession of/seize the vehicle and eventually sell it off in auction/private treaty for satisfaction of the Banks dues. The Bank shall be entitled at all times to apply any other money or moneys in its hand stand to the credit of or belonging to the Borrower in or towards payment of any amount for the time being payable to the Bank and recover at any time from the Borrower by suit or otherwise the balance remaining payable to the Bank. The Bank also preserves the right to note lien on other deposits of the Borrower as additional security for the loan. 13. Where ever a vehicle has been purchased out of the aforesaid overdraft, the Borrower shall keep the vehicle comprehensively insured in his/her name with an Insurance Company approved by the Bank for the market value or to the extent of at least 10% over the loan amount outstanding, whichever is higher and the Banks interest as a hypothecatee should be noted in the certificate of insurance and the insurance policy. The borrower shall produce to the Bank from time to time relevant Policy or Policies for its inspection and also proper evidence to the satisfaction of the Bank 168

and the Borrower hereby undertakes punctually to pay the premium due for such insurance and to produce the receipts for the premium paid to the Bank for its inspection from time to time and if the Borrower should fail to keep insured the said vehicle or to produce such policy or policies and receipts to the Bank on demand, the Bank shall be at liberty but not bound to effect such insurance and pay such premium at the expense of the Borrower and all expenses to be incurred by the Bank in this connection will be made by debit to the Borrowers overdraft account and will form part of the Borrowers indebtedness to the Bank and secured fully by the hypothecation hereby created. The Borrower agrees that any such sum received under any such insurance shall be applied in or towards liquidation of the amount due to the Bank on account of the said overdraft interest and other charges as aforesaid and in the event of there being a surplus the same shall be refunded to the Borrower. 13(a) The borrower (s) hereby further agree that as precondition of the overdraft advances given to me/us by the Bank, that in case of default in repayment of the overdraft/advances or in the repayment of the interest thereon or any of the agreed instalment of the overdraft on due date/s, the Bank and/or the Reserve Bank of India will have an unqualified right to disclose or publish my/our name(s) as defaulter in such manner and through such medium as the Bank or Reserve Bank of India in their absolute discretion may think fit. 13 (b) The borrower/s hereby agree and give consent for disclosure by the Bank all or any (a) information and data relating to the borrower/s (b) information or data relating to any credit facility availed or/to be availed by the borrower/s and default, if any, committed by the borrower/s in discharge of his/their such obligation as the Bank may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau (India) Ltd., and any other agency authorized in this behalf by RBI. Further, the borrower/s declare that the information and data furnished by him/them to the Bank are true and correct and also agree that the Credit Information Bureau (India) Ltd. and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them and further that the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them to Banks/Financial Institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf. 14. The Borrower agrees that if any instalment due hereunder shall not be paid on due date in the manner set out in clause 6/7 here in above the agreement of the Bank to accept repayment of the said overdraft by instalments shall at the option of 169

Bank forthwith determine and the whole balance of the said loan unpaid at the date of such default shall immediately thereupon become payable to the Bank. 15. This Agreement shall operate as a continuing security for all monies, indebtedness and liabilities aforesaid due by the Borrower to the Bank. It is agreed between the parties that at the written request of the Borrower the Bank may transfer the account to any of the branches within India from time to time provided sufficient notice in advance is given by the Borrower to the Bank. The Bank shall also be entitled to transfer the overdraft account to any other branch of the Bank after due notice to the Borrower. 16. Nothing contained in this Agreement shall be construed as excluding the general lien of the Bank for any balance due to the Bank of any account or in respect of any liability of the Borrower to the Bank. 17. Nothing herein contained shall prejudice any rights or remedies of the Bank in respect of any other present or future security guarantee obligation or decree for any indebtedness or liability of the Borrower to the Bank.

SCHEDULE REFERRED TO ABOVE (Details of article(s) /vehicle to be purchased)

Dated this .. day of 200

(BORROWER)

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Annexure- Car VI Guarantee Agreement (To be stamped as an agreement in accordance with the Stamp Act in the State in which this document is executed. Not to be attested.) STATE BANK OF INDIA, Place Date.

Dear Sir/Madam, In consideration of the Sate Bank of India (hereinafter referred to as Bank) having agreed to grant/granted at my / our request and advance of Rs (Rupees only) by way of overdraft to Shri/Smt /Kum..son of/wife of/daughter of Shri.. (hereinafter referred to as the Borrower) for a Car Loan Overdraft under the Banks scheme. I/We hereby guarantee repayment of all moneys at any time payable by the Borrower to the Bank in respect of the overdraft made to the Borrower with interest thereon and the due performance and observance by the Borrower of the terms pertaining to the overdraft and the payment of all costs and expenses incurred by the Bank in relation thereto and I /We also agree to pay and make good to the Bank on demand all losses, cost, damages and expenses occasioned to the bank by reason of non-payment of the said moneys ,costs and expenses or any part thereof or the breach ,non-performance or non-observance of any of the terms as aforesaid .subject to the terms and conditions hereinafter contained : That my/our liability under this guarantee is co-extensive with that of the Borrower as if I/we were the principal debtor(s) of the Bank and the amount due under this agreement will be recoverable from me /us without any recourse to the Borrower and it shall not be obligatory on the bank to call upon the Borrower to pay the amount first or to take any action against the Borrower before enforcing the guarantee against me /us nor shall it be necessary for the Bank to join the Borrower in any suit against me/us . I/we further agree that I/we shall not terminate the guarantee and/or any other of the undertakings contained herein unless a sufficient notice of the intention on my/our part to terminate the guarantee had been given to the Bank and a reasonable time is allowed to lapse thereafter for such termination to take effect. Provided, if the Bank deems it necessary to terminate the guarantee only after the satisfaction of it dues by the 171

Borrower the guarantee will terminate only when the Bank intimates to me/us in writing that Borrower, has paid in full all the dues to the Bank. I /we further agree that the guarantee given hereunder is enforceable notwithstanding any dispute or any suit that may be pending between the Bank and the Borrower. 2. That the guarantee given hereunder shall be continuing one notwithstanding that any of the account(s) opened in respect of the overdraft may at any time or from time to time be brought to credit /nil until notice in writing that the same is /are closed is given by the Bank to me/us. 3. That on demand being made by the Bank for the payment of any amount under this guarantee the same shall be paid without demur or protest by me /us and the notice for the claim sent to me /us shall be conclusive of the amount due from me /us under the terms of the guarantee.

4. The Bank shall be at liberty and without the consent or knowledge of me/us at any time or from time to time to grant to the Borrower or any person liable for him any time or indulgence and to determine enlarge or vary the amount of the overdrafts and advances to take or not to take and if taken to vary exchange or take other security or release or part with any securities held or to be held by the Bank for or on account of the overdrafts and advances or any part thereof and to compound or make any other arrangement with the Borrower or any person so liable with or for the Borrower without releasing or discharging and /or in any manner affecting my/our liability under the guarantee. 5. That the guarantee hereby given is independent and distinct from any security that the Bank has taken or may take in any manner whatsoever whether it be by way of hypothecation, pledge and /or mortgage and /or any other charge over goods, book-debts, movables and other assets and/or any other property movable or immovable and that I/We have not given the guarantee upon any understanding, faith or belief that the Bank has taken and /or may hereafter take any or other such security and that notwithstanding the provisions of Sections 140 and 141 of the Contract Act. 1872 or any other provision of that Act or any other law, I/We will not claim to be discharged to any extent because of the Bank s failure to take any or other such security or in requiring or obtaining any or other such security or losing or parting with for any reason whatsoever including reasons attributable to its default and negligence benefit of any other such security or any rights to any or other such security that have been or could have been taken and in the event of the Bank so losing or parting with security the guarantor (s) shall be deemed to have consented to acquiesce in the same.

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6. That without prejudice to the effect in any manner whatsoever of the foregoing clause. Where the overdrafts and advances are secured or intended to be secured in any manner whatsoever by or over any property movable or immovable whatsoever by way of hypothecation, pledge and /or mortgage of and /or any charge over goods, book-debts, movable and other assets by or under any agreements or letter (s) or otherwise I /We will not be concerned in any manner with any or other such security that the Bank has taken or proposes to take or may take and that the Banks failure in requiring or obtaining any or other such security or in the observance or performance of any of the stipulations or terms contained in any agreements if any or letter(s) and the default of the Bank in requiring or endorsing the observance or performance of any of the said stipulations or terms shall not have the effect of releasing me/us from my/our liability and or of prejudicing the Banks rights or remedies against me /us under the Agreement or otherwise . 7. That the Bank shall be at liberty to take other securities for the overdrafts and advances or any part thereof and to release or forbear to enforce all or any of its remedies upon or under such securities and any collateral security or securities now held by the Bank and that no such release or forbearance as aforesaid shall have the effect of releasing me/us from my/our liability or of prejudicing the Banks rights and remedies against me/us under the terms of the guarantee and that I/We shall have no right to the benefit of any other security that may be held by the Bank until the claim of the Bank against the Borrower in respect of the overdrafts and advances and of all the other claims (if any) of the Bank against the Borrower on any other account whatsoever shall have been fully satisfied and then in so far only as such security shall not have been exhausted for the purpose of realising the amount of the said Banks claims and rateably only with other guarantors or other persons (if any) entitled to the benefit of such securities respectively. That notwithstanding anything contained in Section 133 of the Contract Act or in any other provisions of law I/We will not claim to be discharged to any extent because of the Bank varying any of the terms and conditions whether contained in any Agreement(s) or letter(s) and on which the overdraft has been made to the Borrower and for this purpose and in particular any excess drawings over and above the sanctioned limit of the overdrafts and advances allowed by the Bank at or without the specific request of the borrower shall not discharge me/us from my/our liability under this guarantee. 8. The Guarantor(s) hereby agree (s) that notwithstanding any variation made in the terms of the Hypothecation Agreement/Agreement* etc. dated Or any other Agreement or letter inter alia including variation in the rate of interest, extending the date of payment of the instalments and on which the overdraft has 173

been made or any composition made between the Bank and the Borrower or any agreement on the part of the Bank to give time to or not to sue the Borrower or the Bank parting with any of the securities given by the borrower the Guarantor(s) shall not be released or discharged of his/their obligations under this Guarantee provided that in the event of any such variation or composition or agreement the liability of the Guarantor(s) shall notwithstanding anything herein contained be deemed to have accrued and the Guarantor(s) shall be deemed to have become liable, hereunder on the date or dates on which the Borrower shall become liable to pay the amount/amounts due under the above referred to Agreements as a result of such variation or composition or agreement. (* Delete whichever is not applicable.) 9.(a) That if the Borrower shall become insolvent, bankrupt or makes any arrangement or composition with creditors the Bank (notwithstanding payment to the Bank by me/us or any other person of the whole or any part of the amount hereby secured) rank as creditor and may prove against the estate of the borrower for the full amount of all the banks claims against the borrower or agree to and accept any composition in respect thereof and the Bank may receive and retain the whole of the dividends, compensation or other payments thereof to the exclusion of all my/our rights as guarantor(s) for the Borrower in competition with the Bank until all the Banks claims are fully satisfied and I/We will not be paying off the amount payable by me/us or any part thereof or otherwise prove or claim against the estate of the Borrower until the whole of the Banks claims against the Borrower, in respect of all the liabilities whatsoever have been satisfied and the Bank may enforce and recover payment from me/us of the full amount payable by me/us notwithstanding any such proof or composition as aforesaid. 9. (b) The guarantor shall not stand discharged by transfer of the overdraft account of the Borrower from one branch to another and such transfer of the account shall not be deemed as a variation of the terms of the contract. 10.The guarantor(s) hereby agree and give consent for disclosure by the Bank all or any (a) information and data relating to the guarantor(s) (b) information or data relating to any credit facility availed or/to be availed by the guarantor(s) and default, if any, committed by the guarantor(s) in discharge of his/their such obligation as the Bank may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau (India) Ltd., and any other agency authorized in this behalf by RBI. Further, the guarantor(s) declare that the information and data furnished by him/them to the Bank are true and correct and also agree that the Credit Information Bureau (India) Ltd. and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them and further that the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for consideration, the processed 174

information and data or products thereof prepared by them to Banks/Financial Institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf. 11.That any notice by way of demand or otherwise may be given by the bank to me/us sending the same by post and addressed to me /us and the notice shall be deemed to have been given at the time when it will be delivered in the ordinary course of post and it will be sufficient in order to prove service of any such notice and to prove that the envelope containing the same was posted and the certificate signed by any officer duly authorised by the Bank in this regard that the envelope was posted, shall constitute such proof. 12. That the guarantee herein contained shall not be determined or affected by the death of the guarantors hereunder but shall in all respects and for all purposes be binding and operative on his/their successor(s), heir(s) and assigns until repayment of all moneys secured by and due to the Bank under the overdraft granted to the Borrower. 13.* We further agree that we shall be jointly and severally liable to the bank for the entire outstanding in respect of the overdraft and that the Bank shall be at liberty to sue either or any of us in respect of such liability without joining the other or others of us and notwithstanding any decree in any such suit subsequently to sue the other or others of us and to proceed to judgement and execution at the option of the Bank until its claim is fully satisfied.

Signed and delivered by the said: Shri/Smt(Guarantor). Shri/Smt..(Guarantor).

Place: . Date: ..

(* Delete whichever not applicable)

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Annexure-Car VII Arrangement Letter (For financing consumer durables/two wheelers/cars) To, _______________________ _______________________ _______________________ _______________________ (Name & Address of the Borrower) Ref No: Dear Sir/Madam, Personal Segment Advances Loan for purchase of Over Draft of Rs.. With reference to your application for Car Loan Overdraft dated ., we hereby sanction you car loan limit (on overdraft basis) of Rs. (Rupees..only) on the following terms and conditions: 1. Purpose: The overdraft is sanctioned to you for the purpose of purchase of . 2. Margin: 3. Rate of Interest FLOATING RATE OF INTEREST The applicable interest on the loan amount will be at the rate of ____% margin above the Base Rate which is presently ___% p.a. and thus the present effective rate of interest being ____% p.a. calculated on the daily balance of the loan amount at monthly rests. However, interest on the loan amount will be applied at Base Rate + ____% margin* (discount of ___%), which is presently ____% p.a. for the first year and Base Rate + ____% margin* (discount of ___%), which is presently ___% p.a. for the second and third year. At the end of the third year, the borrower(s) shall be liable to pay floating rate of interest 176 % Date

comprising of the Base Rate and Margin then prevailing as may be determined by the Bank. Provided that the Bank shall at all time, and from time to time, be entitled to vary the Discount, Margin and the Base Rate at its discretion. Depending on the variation of Base Rate, Margin and the Discount, the effective rate of interest shall vary periodically and the borrower(s) shall be liable to pay the effective rate of interest. * Means net Margin i.e. (Margin Discount). You shall be deemed to have notice of changes in the rate of interest when the changes are notified at/displayed at the branch or published in a newspaper or in the website of the Bank or made through the entry in the passbook or the statement of account or by debit to the loan account, etc. and you are liable to pay such revised rate of interest. The Bank has option to reduce or increase the EMI or extend the repayment period consequent upon changes in interest rate. Without prejudice to the Banks other rights and remedies, the Bank shall be entitled to charge at its own discretion such enhanced rate of interest on the loan account(s) either on the entire outstandings or on a portion thereof as it may fix for any default or irregularity on the part of the borrower(s) which in the opinion of the Bank warrants charging of such enhanced rates of interest for such period as the Bank may deem fit. 4. Repayment : The overdraft is to be repaid in Equated Monthly Instalments of Rs each till the entire overdraft with the interest is fully repaid. The first instalment commences from the month following the month of purchase of above said article(s)/vehicle. Wherever repayment is through post-dated cheques, the cheques should be dated prior to the 7th of every month. Drawing Power in the Overdraft limit will be reduced on monthly basis to the extent of principal component of EMI (as per annexure) your liability to the bank will be extinguished only when the outstanding in the overdraft account becomes Nil, on payment of residual amount, if any. 5. Prepayment Charges: No prepayment penalty will be charged. 6. Security : The overdraft will be secured by: e) Hypothecation of the aforesaid car purchased out of the overdraft amount in favour of the Bank. Noting of Banks hypothecation charge in the Books of the RTO and the Registration Book will be essential in 177

respect of finance for two / four wheeler vehicles. You will also be required to furnish a copy of the Registration Book for Banks record after recording Banks hypothecation charge therein by the RTO. f) Third party guarantee of the spouse.* g) Third party guarantee of..* h) Pledge of securities listed hereunder...* 7. Insurance: The vehicles shall be kept comprehensively insured by you in your name for the market value or at least 10% above the overdraft amount outstanding, whichever is higher. Banks hypothecation charge is to be noted on the insurance policy and a copy of the policy is to be delivered to the Bank. 8. Inspection (for vehicles): The Bank reserves its rights to inspect the vehicle and registration documents at regular intervals. 9. Legal expenses, etc. : All expenses like valuers fees, insurance premia, stamp duty, registration charges and other incidental expenses incurred in connection with the overdraft are to be borne by you

10. Processing charges: Processing charges of Rs (Rupees . only) are payable immediately. 11. Disbursement: The overdraft amount will be disbursed by means direct to the account of the supplier/dealer after execution of prescribed security documents. Please call on us on any working day to execute the documents. The overdraft is also subject to other terms and conditions as mentioned in the documents(s) executed/to be executed in connection with the overdraft and as may be prescribed by the Bank from time to time. The duplicate copy of this arrangement letter may please be returned to us duly signed by you and guarantor(s) in token of acceptance of the terms and conditions detailed herein within a period of 45 days from the date of this letter. 12. Issue of cheque book etc.: Cheque book will be issued and operation of the account on overdraft basis will be permitted only after final disbursement of the overdraft. Under no circumstances the drawings in the Overdraft account will be allowed to exceed the Drawing Power fixed in this regard. 178

The overdraft is also subject to other terms and conditions that may be prescribed by the Bank from time to time. Please call on us on any working day to execute the documents. The duplicate copy of this arrangement letter may please be returned to us duly signed by you and the guarantor(s) in token of acceptance of the terms and conditions detailed herein. 13. The Bank reserves the right to collect any tax if levied by the State/Central Government and/or other Authorities in respect of this transaction. Yours faithfully, Branch Manager (* Delete whichever not applicable) Received the original. Terms and conditions accepted Borrower(s) Date: Terms and conditions of the overdraft are noted Guarantor(s) Date: (All pages of this Arrangement Letter are required to be stamped and initialled by the Bank. All pages of the copy returned by the borrower are required to be signed by both borrower and guarantor and are to be retained with the document.)

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Annexure-Car VIII The Branch Manager, State Bank of India, .. Branch, Dear Sir/Madam, SCHEMES FOR LOANS FOR PURCHASE OF CAR UNDER CAR LOAN-OVERDRAFT I have availed the benefit of the aforesaid scheme. At present I am serving as .. (Designation) in . Department at .. I am authorised to draw and disburse my own salary along with the salaries of the employees working in this office/establishment/department. I undertake to deposit my salary supported by the pay bill every month for credit to the Savings Bank Account maintained at your branch till liquidation of the amount advanced to me. I further authorise you to deduct a sum of Rs per month beginning from the salary for the month of . from the aforesaid account for adjustment towards the balance outstanding in the overdraft account till liquidation. I hereby authorise State Bank of India .. Branch to collect and receive any amount payable to me including amount payable towards Provident Fund, Gratuity, Pension or similar dues on my behalf in the event of my retirement / resignation, termination or discontinuation of my service for any reason whatsoever. I further agree that the aforesaid authority shall be irrevocable till the entire amount of overdraft together with interest stands liquidated. I further undertake to execute necessary authorisation / documents as deemed just and necessary by the Bank in accordance with the scheme in the event of my ceasing to be drawing and disbursing authority by virtue of my transfer or otherwise. Place: Date: ...... SIGNATURE

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SBI NRI - CAR LOAN SCHEME FOR NEW VEHICLE Under the NRI Car Loan Scheme the NRI/PIO (Person of Indian Origin) will be the Guarantor and the NRIs/PIOs nominee will be the principal applicant. (Circular No.- PBBU/AL/1/162 dated January 17, 2007.) 1. Purpose Term Loans are sanctioned by the Bank for purchase of new passenger cars, Multi Utility Vehicles (MUVs) and SUVs. 2. Eligibility: For Borrower & Guarantor Age: 21- 65 years (for both). Loan to be repaid before the guarantor turns 65 yrs of age. For Borrower: Resident Indian who is: An individual/agriculturist/professional or self employed/student etc or doing business with economic activity. A parent of the NRI receiving pension or inward remittance at regular intervals. Physically fit with a driving license or in a position to engage a driver (In all such cases where the borrower has an income the saving bank account should be with SBI). Resident Indian who is the borrower should be related (as given below) to the NRI fulfilling under noted eligibility criteria to stand guarantee for the loan. The scope of the term relative will be as under: Spouse Father Mother (including step-mother) Son (including step-son) Son's Wife Daughter (including step-daughter) Daughter's Husband Brother (including step-brother) Brothers wife Sister (including step-sister) Sisters husband Brother (including step-brother) of the spouse 181

 Sister (including step-sister) of the spouse A simple declaration by the NRI stating relationship would be obtained as per Annexure Car VII For Guarantor: NRI fulfilling following condition: Having valid Indian passport Steady Source of Income Employed abroad for at least 2 yrs Holding a valid job contract/work permit Having NRI account with SBI for at least 12 months with min. average balance of Rs. 50,000/- or New Account with USD 5000/- or equivalent. Power of Attorney Minimum Income:For Borrower: No restriction For Guarantor: Minimum NMI US $ 1000.00 or Minimum NAI US $ 12000.00 (Circular No.- PBBU/AL/1/162 dated February 17, 2007) 3. 3.1 Authorised Branches

To start with the product will be initially launched in NRI intensive Branches as per list enclosed as Annexure E. Beside these branches available in Annexure-E, the General Manager of the respective networks at all Circles will have the power to add more branches for sanctioning car loans under the scheme after evaluating business potential (Circular No.- PB/AL/08 dated November 10,2006.) 4. Loan Amount Loan amount would be given on the basis of guarantors income. Maximum Loan Amount :- 18 times of NMI (of Guarantor) 1.5 times of NAI (of Guarantor) 4.1 For new vehicles, there is no ceiling in loan amount For Old vehicle : Rs. 15 lacs (Maximum) (Circular No. NBG/PBU/AL-Car Loan/6/2006-07 dated 18.10.2006) 182

4.2 5. 5.1 5.2 5.3

In no case the EMI/NMI percentage should exceed 50%. Margin For all Loans: 15% The total cost of vehicle would be inclusive of one time road tax, registration, insurance, etc. The sanctioning authority will have discretion to reduce the margin by 5% where check off facility from a reputed employer is available. (PB/AL/122 dated 01.12.2006) Repayment Recovery should be such that the loan gets repaid within 7 years. The customer will have option for payment in shorter duration. Loan account should be closed before the guarantor reaches 65 years of age. Repayment to take place from: Remittance from abroad through normal banking channels. Out of funds in NRE/FCNR/NRO accounts. Remittance out of local funds by close relatives of NRI Guarantor. The Equated Instalment will be determined on the basis of the current rate of interest. Seizure of vehicle: Whenever a cheque is dishonoured or an instalment due remains unpaid for the first time it should be immediately brought to the notice of the borrower by issuance of a notice, as per instructions contained in Corporate Centre letter no. PB/AL/1/169 dated March 17, 2006. Interest All loans should be given only on a floating rate basis, i.e., the effective interest will increase or decrease with every increase or decrease in Base Rate or whenever the rate of interest on Car Loans are revised with out changing Base Rate, this should be advised to the borrower(s). While generally the Equated Monthly Instalment need not be changed with every change in the interest rate, should the borrower/guarantor seek an EMI reduction consequent to a rate reduction the same may be permitted if the account is a Standard Asset and the loan amount outstanding is at least Rs.5 lacs and the interest rate reduction is of 1% or more. The above facility will be permitted only once during the currency of the loan.

6. 6.1 6.2 6.3

6.4

6.5

7. 7.1

7.2

7.3

183

7.4 7.5

The Bank also reserves the right to increase the EMI in case of interest rate rise. It has been decided that the interest rates w.e.f. 23.04.2012 will be as under: 1.25% above Base Rate, i.e. 11.25% p.a.

All new car loans should be opened under the following Product codes, irrespective of loan amount:NRI Car Loan Scheme (Term Loan) 6251 1126 (Circular No. PB/AL/1/3 dated 21st April, 2012) 8. 8.1 Penal Interest Extant policy on Penal Interest Rate on was reviewed in the light of the special characteristics and requirements of Personal Segment loans, and the Board has approved the revised Penal Interest Rate Policy for Personal Segment loans as under : Extant instructions for standard Personal Segment Loans Penal interest should not be charged for loans upto Rs.25,000/For loans above Rs.25000/- , penal interest rate @ 2% on the entire outstanding for the period of default should be recovered if the EMI remains unpaid for a period of 30 days from the due date. Revised instructions for proposed for standard Personal Segment Loans No change

For Loans above Rs.25000/- , if the irregularity exceeds EMI or Installment amount, for a period of one month , then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part installment or part EMI remains overdue, then penal interest should not be levied*. This provision has been made to avoid application of penal interest on Personal Segment Loan accounts where stipulated EMIs or instalments are being paid regularly by the borrowers.

*Irregularity in the account in CBS may arise for several reasons :

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(i) small difference in the EMI amount on the PDC and the actual EMI in the system, (ii) delay of a few days in presenting PDC, (iii) change in loan interest rate not large enough to warrant regeneration of repayment schedule etc.. With even an irregularity of Rs.1, the account status becomes Irregular and consequently, after 30 days, penal interest @2% is charged for the entire loan outstanding. As the EMIs can never take care of the irregular portion, the application of penal interest becomes perpetual, which further increases the irregularity and leads to build up of Indicative NPAs. This also leads to customer complaints and avoidable extra work for the operating staff in investigating and making refunds. 8.2 As per the extant loan policy of the Bank, the sanctioning authority has been given the discretion for sanctioning waiver of application of penal interest for default in payment of interest/instalment in case of Term Loans. It has now been decided to add the following qualifiers for use of this discretion:(a) waiver will only be ex-post facto, i.e. the system will levy penal interest as per the rule, and appropriate authority can permit refund, and (b) discretion should be utilized only where the borrowers claims for waiver is merited on facts such as late presentation of PDCs by us, etc. 8.3 Provisions of this policy may also be used by the operating units to correct the existing anomalies in the p-segment loan accounts which have arisen due to application of incorrect penal interest. Deputy Managing Director & Group Head (NBG) has been given authority, subject to compliance with RBI guidelines, BCSBI/IBA Code etc. to raise the floor limit above the minimum prescribed by the RBI, (Presently Rs.25,000 as per minimum floor prescribed by RBI) within the Bank according to business exigencies but in compliance with RBI guideline. ( Circular No PBBU/HL/PM/9(A) dated 18th June 2010) 9. Processing Fee Processing fee of 0.51% is to be recovered on the loan amount subject to minimum of Rs. 1020/- and maximum of Rs. 10200/-. However, General Managers of respective Network at Circles can reduce processing fee upto 50%, in respect of car Loans: For short term promotional drives Wherever bulk finance is involved with availability of check-off from reputed employer 185

8.4

10. 10.1

10.2

10.3

Security a) Hypothecation of vehicle and noting of hypothecation charge in the books of R.T.O. b) Security in the form of surrender value of LIC policy, NSCs, units of UTI, Deposits with our Bank, SBI Magnums, gold or any other security normally acceptable to the Bank for grant of advance; to cover at least 35% of the loan amount. Non-financial securities like gold and non-specified securities like LIC policy to be valued at a margin as stipulated in the various schemes for finance against the securities concerned Tangible security, wherever applicable, can be waived by Sanctioning Authority in cases where the loan is granted to a person(s) i) An NRI - Housing Loan borrower and has a track record of satisfactory repayments (as per repayment schedule) of at least three years. OR ii) An NRI who has in the past repaid Term/Demand Loan (other than a loan against a specified security etc.) as per repayment schedule OR iii) An NRI who has been maintaining a deposit account with us for at least 5 years and average deposit has been of the order of Rs.50,000.00 Besides the above cases, an officer of the rank of Chief Manager and above of the branch/RACPC may authorize waiver of Tangible Collateral Security for a customer, for strategic reasons, which should be recorded briefly. Documentation Application Form Annexure-Car I Letter forwarding demand draft/Bankers cheque to supplier/dealer Annexure-Car II Hypothecation Agreement Annexure Car III Guarantee Agreement Annexure-Car IV & Car IV-A Arrangement Letter Annexure-Car V Power of Attorney if applicable Annexure-Car VI & VI -A Declaration Form Annexure-Car VII Insurance The vehicle purchased is to be kept comprehensively insured in the name of the borrower for the market value or at least 10% above the loan amount outstanding, whichever is higher, and the Banks interest as a hypothecatee should be noted in the certificate of insurance and insurance policy. A copy of this is to be retained with the loan documents. 186

10.4

11.

12. 12.1

12.2 13. 13.1

Insurance register is to be maintained. Mode of Disbursement w.e.f. 08.12.2010 :It has been decided that all car loan proceeds should be disbursed only by way of RTGS/NEFT facility. In case the dealer is maintaining account with the branch of State Bank of India, the proceeds should be credited through CBS system. The existing letter from branch forwarding demand draft/bankers cheque to dealer/supplier needs to be suitably modified to provide for payment of proceeds by way of RTGS/NEFT or through CBS system to the dealers. The format of the letter is attached as Annexure Car-II. The names and addresses of the dealers are available in LOS and therefore the genuineness of the dealer can be checked from LOS. Also the account number of the dealers should be obtained beforehand, and any change in account number should be dealt with caution.

13.2

13.3

(Letter No. PB/AL/1/272 dated 8th December 2010) 14. Prepayment Penalty: No prepayment penalty will be applicable w.e.f 1st May 2011 (Circular. No. PB/AL/1/5 dated 29th April, 2011) 15. 15.1 Inspection For Standard Asset accounts periodical inspections are waived after the initial inspection. However, if there is a default of 2 monthly instalments, inspection would be required. In case of NPA accounts inspections should be made twice a year. Inspection register is to be maintained properly. Discretionary Powers To be exercised as per the Delegation of Powers advised by the LHO. 17. 17.1 General The following papers are to be submitted along with the application for car loan (Annexure- Car I)

15.2 16.

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For Borrower: 2 passport size photographs of borrower. Signature identification from bankers of borrower/guarantor(s). A copy of passport /voters ID card/PAN card. Proof of residence. For Guarantor: Completed loan application. 3 passport size photos including those in application. Passport copy with page containing visa stamping Copy of valid work permit Employment contract copy (an English translation duly attested by employer/ consulate/ embassy/our foreign office if it is in any other language) Latest salary certificate in original or proof of income in case of self employed/professionals Copy of identity card issued by the employer Proof of residence (driving license/ utility bills etc.) Copy of Continuous Discharge Certificate in respect of applicants employed in merchant navy. Statement of overseas bank account for the last six months which reflect credit of salary, savings etc. Power of Attorney, if applicable, in Banks standard format duly stamped and notarized/ attested by Indian Embassy/Consulate. Tri-merge/any other credit reports as applicable should be submitted by the NRI. Score of less than 620 for Tri-merge are not eligible. If the country of residence does not have a credit score system for individuals, the bank will rely on the income level and the statement of assets & liabilities furnished by the NRI. KYC should be done on both borrower and guarantor. 18. Payment of Service Charge To Car Dealers:

18. A. Payment of Service Charges to Car Dealers/Dealer Sales Executive (DSE):With a view to improving our penetration and presence in auto loans market, we have devised a mechanism to compensate the car dealers for the services rendered by them in: vii) viii) ix) Explaining the comparative advantages of our product to potential customers, Convincing prospective customers about merits of obtaining car finance from us, Directing business to our branches. 188

For providing this service, the car dealers are required to deploy manpower for the purpose and in the process incur some direct and indirect expenses. The initiative is addressed to compensate for the services and is also in line with the market practice. Service charge would not be payable for vehicles financed to SBI staff members. In all other cases service charge will be paid as laid down below. The service fee is inclusive of the service tax and the payment of service tax to government is to be made by the car dealer.

18. A.1 For Dealers: A fee of 1.5% of the loan amount will be paid on the business sourced by the dealers. The service fee is inclusive of the service tax. The fee should be paid by the sanctioning authority at the time of the disbursement of the car loan. For DSEs: A fee of 0.25% of the loan amount (maximum Rs.3000/-) will be paid as incentive to Dealer Sales Executives (DSEs) for the loan applications sourced by them at all Centres. The incentive will be paid at the time of the disbursement of loan. 18. A.2 A list of sales executives should be obtained from the car dealers on their letter head, which will be retained at the branch/CPC for identification of the Sales Executives for payment of incentives. 18. A.4 The service fee is payable only when loan applications are sourced by Car Dealers to the Bank. The paying offices should maintain proper records of payments for verification and audit by the controlling office and Branch Inspectors.

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Annexure-Car I

190

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Annexure-Car II Letter from Branch to dealer/supplier To, M/s ___________________ _______________________ _______________________ (Name & Address of the Dealer/Supplier) No. Dear Sir/Madam, Ref: your Performa invoice / letter No. ___________ dated __________for supply of_________________ to Shri / Smt / _______________________________ (1st applicant) Shri / Smt / _______________________________ (2nd applicant) Hereinafter jointly referred to as borrowers. With reference to your Performa invoice/letter no. _______ dated ________, we have today credited your account No. _______ with ______________ (Name of The Bank), ------------- (Name of the Branch)(UTR Number _____________) on behalf of Shri/Smt. ______________________________by Rs._________ (Rupees___________), being the cost of _____________ to be supplied/delivered to Shri/Smt._________________________. Please forward to us your stamped receipt for the amount. The vehicle may be registered in the name of the 1st applicant only. 2. Please note that the amount is to be appropriated specifically towards the purchase prices of the said vehicles. It should not be appropriated by you towards or set off against any other debt or liability due or owing to you by Shri/Smt. _______________________________ (Name of the borrower). Please note that the Bank will have the right to call back the amount if you fail to deliver the vehicle to the above named person against his/her acknowledgement. Date:

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3. Please advise us the full particulars such as engine number/chassis number/year of manufacture etc. of the vehicle delivered to Shri/Smt. ___________________________________. 4. Shri/Smt. ____________________ and Shri/Smt/ ______________________ have been sanctioned by us a Term Loan of Rs. ______________ jointly for purchase of the vehicle. Please, therefore, ensure that the Hypothecation Charge over the vehicle to be supplied to Shri/Smt.____________________ is registered in favour of State Bank of India, ________________ Branch in the books of Regional Transport Officer. Please arrange to obtain a Certificate from RTO to the effect of having registered our Hypothecation charge, which may be forwarded to us for our record. The relative form signed by the borrower and the Bank for this purpose is forwarded herewith. Yours faithfully, Branch Manager (To be filled in and returned to the Branch by the Dealer supplying the vehicle) Vehicle Make : Date of Delivery :

Engine Number :

Chassis Number :

(Signature of the dealer)

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Annexure-Car III Loancum-Hypothecation Agreement (To Be Stamped As Deed Of Hypothecation And Agreement In Accordance With The Stamp Act Of The State In Which The Document Is Executed. Not to Be Attested.) The State Bank of India having its Branch Office at (Hereinafter called the Bank which expression shall include its successors and assigns) having at the request of Shri / Smt. / Kum Son / Daughter / Wife of at present aged around . and residing at . (hereinafter, called the Borrower which expression shall include his/her respective heirs, executors, administrators and assigns) agreed to grant to the Borrower a loan of Rs to enable the Borrower to purchase a 2/4 wheeler vehicle more particularly specified and described in Schedule I hereto ( hereinafter referred to as the vehicle) for his/her personal use as set forth in the Borrowers application dated the . a copy of which is annexed and forms part of this Agreement, such loan to be secured as herein provided. IT IS HEREBY AGREED AS FOLLOWS: 1. The request for grant of the loan by the Borrower shall be deemed to constitute the basis of this Agreement and the loan advanced/to be advanced by the Bank to the Borrower. 2. The Borrower hereby agrees that the loan shall, inter alia, be governed by the terms hereof. The Borrower expressly agrees and undertakes to notify the Bank in writing of any circumstance, affecting the correctness of any of the particulars set forth in his application immediately after the occurrence thereof. The Borrower expressly agrees and undertakes that the Loan shall be used exclusively for the purposes set forth in his application and that no change shall be made therein without the written consent of the Bank. The Borrower agrees that the Loan shall be paid by the Bank to an authorized dealer of the vehicle directly against their invoice on receiving information that the vehicle would be delivered to him on payment/within days of payment. However, in deserving cases where the borrower has purchased the vehicle with his own funds, the Bank may provide him loan upto ..% of the cost of the vehicle. The Borrower shall produce to the Bank 200

3.

4.

5.

the original receipts for having purchased the vehicle and shall hand over photocopy of the said receipt to the Bank for its record. 6. The borrower shall repay to the Bank, the amount of loan and interest thereon in equated monthly installments of Rs.___________ each commencing from the month of _________ 20___ till the entire loan with interest is fully repaid. The equated monthly instalment also includes interest component. The Bank has option to reduce or increase the EMI or extend the repayment period consequent upon changes in interest rate. FIXED RATE Interest on the amount of loan will be applied at the rate of ______ % p.a. at monthly rests, calculated on the highest monthly balance. Further, in the event of major volatility in interest rate or the fixed rate falling below the Base Rate stipulated by the Bank from time to time or for any other reason, whatsoever during the period of this agreement, the Bank may at its sole discretion alter the rate of interest suitably. Bank shall be the sole judge to determine whether such conditions exist or not. (To be deleted where floating rate of interest is applicable) FLOATING RATE Interest on the amount of loan will be applied at the rate of ____% margin above the Base Rate which is presently _____% p.a. and thus the present effective rate of interest being ____% p.a. calculated on daily balance of the loan amount at monthly rests, provided that the Bank shall at any time, and from time to time be entitled to vary the Margin and the Base Rate at its discretion. Depending on variation of Base Rate and Margin, the effective rate of interest shall vary periodically and the borrower shall be liable to pay the effective rate of interest. (To be deleted where fixed rate of interest is applicable) Such revised rate of interest shall always be construed as agreed to be paid by the borrower(s) and hereby secured. Borrower(s) shall be deemed to have notice of change in the rate of interest when the changes are notified at/displayed at the branch or published in a newspaper or in the website of the Bank or made through the entry in the passbook or the statement of account or by debit to the loan account. Without prejudice to the Banks other rights and remedies, the Bank shall be entitled to charge at its own discretion such enhanced rate of interest on the loan account(s) either on the entire outstandings or on a portion thereof as it 201

may fix for any default or irregularity on the part of the borrower(s) which in the opinion of the Bank warrants charging of such enhanced rates of interest for such period as the Bank may deem fit. Besides, the Bank shall also charge a penalty, the rate of which shall be at the discretion of the Bank, for every bounced cheque for any reason whatsoever in addition to the enhanced rate of interest as applicable.

6.(a)

Further, the Bank shall, at any time, be entitled to give notice to the borrower of its intention to charge and may thereafter charge interest at such higher rate than the rate hereinbefore mentioned, as the Bank may specify. The Equated Monthly Instalments will have to be paid till the entire loan and the interest is fully repaid. Further, the amount of Equated Monthly Instalment may change/increase as may be decided by the Bank.

7.

On demand the Borrower agrees to deliver to the Bank post-dated cheques for the monthly instalments and the Borrower warrants that the cheques will be honoured on first presentation. Any non-presentation of a cheque due to any reason will not affect the liability of the Borrower to pay the monthly instalments or any other sum. The Borrower agrees to forthwith replace the cheques/issue fresh cheques, if required by the Bank. The Borrower shall not be entitled to call upon the Bank to refrain from presenting any cheque for payment and if the Borrower does so, the Bank shall nevertheless be entitled to present the cheque for payment and in the event of dishonour the provisions under Chapter XVII of the Negotiable Instruments Act, 1881, shall apply. As security for the repayment of Loan together with interest at the rates stipulated above and any other charges, costs and expenses payable to or incurred by the Bank in relation thereto, the Borrower hereby creates a first charge in favour of the Bank by way of hypothecation of the vehicle together with all its components, accessories, attachments etc. specified and described in the Schedule below, purchased/to be purchased by the Borrower with the Loan wherever it shall be kept. The Borrower shall not during the continuance of this security create any charge or encumbrance of any kind over the hypothecated vehicle nor shall dispose of the same without repaying in full the Loan amount, interest, costs, charges and expenses secured here under.

8.

9.

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10.(a) The Borrower shall keep the hypothecated articles in good working order, repair and condition and shall permit the officers and other persons deputed by the Bank to have access to and inspection of it if required by the Bank. 10.(b) In case of hypothecation of vehicles the Banks charge shall be registered with appropriate Road Transport authority and the Borrower undertakes to get such hypothecation to the Bank marked in Registration book of the vehicle immediately after purchase of the vehicle. 11. The borrower will intimate immediately after purchase of the vehicle the location where the vehicle will be garaged. Any change in address/location of the garage will be intimated forthwith. The Bank its agents and nominees shall be entitled at all times to enter any place where the hypothecated vehicle is garaged, and on the occurrence of either of (i) default in payment of more than one instalments of bouncing of more than one post dated cheques, or (ii) any other event which in the opinion of the Bank will adversely affect the security available to the Bank, they will be authorized to take possession of/seize the vehicle and eventually sell it off in auction/private treaty for satisfaction of the Banks dues. The Bank shall be entitled at all times to apply any other money or moneys in its hand stand to the credit of or belonging to the Borrower in or towards payment of any amount for the time being payable to the Bank and recover at any time from the Borrower by suit or otherwise the balance remaining payable to the Bank. The Bank also preserves the right to note lien on other deposits of the Borrower as additional security for the loan. 13. Where ever a vehicle has been purchased out of the aforesaid loan, the Borrower shall keep the vehicle comprehensively insured in his/her name with an Insurance Company approved by the Bank for the market value or to the extent of at least 10% over the loan amount outstanding, whichever is higher and the Banks interest as a hypothecatee should be noted in the certificate of insurance and the insurance policy. The borrower shall produce to the Bank from time to time relevant Policy or Policies for its inspection and also proper evidence to the satisfaction of the Bank and the Borrower hereby undertakes punctually to pay the premium due for such insurance and to produce the receipts for the premium paid to the Bank for its inspection from time to time and if the Borrower should fail 203

12.

to keep insured the said vehicle or to produce such policy or policies and receipts to the Bank on demand, the Bank shall be at liberty but not bound to effect such insurance and pay such premium at the expense of the Borrower and all expenses to be incurred by the Bank in this connection will be made by debit to the Borrowers loan account and will form part of the Borrowers indebtedness to the Bank and secured fully by the hypothecation hereby created. The Borrower agrees that any such sum received under any such insurance shall be applied in or towards liquidation of the amount due to the Bank on account of the said Loan interest and other charges as aforesaid and in the event of there being a surplus the same shall be refunded to the Borrower. 13(a) The borrower (s) hereby further agree that as precondition of the loan advances given to me/us by the Bank, that in case of default in repayment of the loan /advances or in the repayment of the interest thereon or any of the agreed instalment of the loan on due date/s, the Bank and/or the Reserve Bank of India will have an unqualified right to disclose or publish my/our name(s) as defaulter in such manner and through such medium as the Bank or Reserve Bank of India in their absolute discretion may think fit. 13 (b) The borrower/s hereby agree and give consent for disclosure by the Bank all or any (a) information and data relating to the borrower/s (b) information or data relating to any credit facility availed or/to be availed by the borrower/s and default, if any, committed by the borrower/s in discharge of his/their such obligation as the Bank may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau (India) Ltd., and any other agency authorized in this behalf by RBI. Further, the borrower/s declare that the information and data furnished by him/them to the Bank are true and correct and also agree that the Credit Information Bureau (India) Ltd. and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them and further that the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them to Banks/Financial Institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf. 14. The Borrower agrees that if any instalment due hereunder shall not be paid on due date in the manner set out in clause 6/7 here in above the agreement of the Bank to accept repayment of the said loan by instalments shall at the option of Bank forthwith determine and the whole balance of the said loan unpaid at the date of such default shall immediately thereupon become payable to the Bank. 204

15.

This Agreement shall operate as a continuing security for all monies, indebtedness and liabilities aforesaid due by the Borrower to the Bank. It is agreed between the parties that at the written request of the Borrower the Bank may transfer the account to any of the branches within India from time to time provided sufficient notice in advance is given by the Borrower to the Bank. The Bank shall also be entitled to transfer the loan account to any other branch of the Bank after due notice to the Borrower. Nothing contained in this Agreement shall be construed as excluding the general lien of the Bank for any balance due to the Bank of any account or in respect of any liability of the Borrower to the Bank. Nothing herein contained shall prejudice any rights or remedies of the Bank in respect of any other present or future security guarantee obligation or decree for any indebtedness or liability of the Borrower to the Bank.

16.

17.

SCHEDULE REFERRED TO ABOVE (Details of article(s) /vehicle to be purchased)

Dated this .. day of 200

(BORROWER)

205

Annexure- Car - IV To, The Branch Manager, State Bank of India, . .

Date:

Dear Sir/Madam, GUARANTEE AGREMENT 1. State Bank of India has granted a loan to Shri . for purchase of a car/motor vehicle at my/our request subject to the condition that the repayment of the loan is guaranteed by me/us, as stated in the sanction letter No.. Dated 2. Please find enclosed a Guarantee Agreement executed by me/us on . (Date of execution) in favour of the Bank guaranteeing the repayment of the loan, details of which have been stated in paragraph 1 hereinabove.

PLACE: DATE: GUARANTOR(S)

SIGNATURE(S) OF THE NRI

NOTE: Execution of this letter should be authenticated by a Notary Public or an official of the Bank in any of the foreign branches/offices, wherever possible or by an official in Indian Embassy.

206

Annexure- Car IV-A Guarantee Agreement (To Be Stamped As An Agreement In Accordance With The Stamp Act In The State In Which This Document Is Executed. Not to Be Attested.)

STATE BANK OF INDIA, Dear Sir/Madam,

Place Date.

In consideration of the Sate Bank of India (hereinafter referred to as Bank) having agreed to grant/granted at my / our request and advance of Rs (Rupees only) by way of loan to Shri/Smt /Kum..son of/wife of/daughter of Shri.. (hereinafter referred to as the Borrower) for . (Purpose of loan) under the Banks Scheme. I/We hereby guarantee repayment of all moneys at any time payable by the Borrower to the Bank in respect of the loan made to the Borrower with interest thereon and the due performance and observance by the Borrower of the terms pertaining to the loan and the payment of all costs and expenses incurred by the Bank in relation thereto and I /We also agree to pay and make good to the Bank on demand all losses, cost, damages and expenses occasioned to the bank by reason of non-payment of the said moneys ,costs and expenses or any part thereof or the breach ,non-performance or nonobservance of any of the terms as aforesaid .subject to the terms and conditions hereinafter contained : That my/our liability under this guarantee is co-extensive with that of the Borrower as if I/we were the principal debtor(s) of the Bank and the amount due under this agreement will be recoverable from me /us without any recourse to the Borrower and it shall not be obligatory on the bank to call upon the Borrower to pay the amount first or to take any action against the Borrower before enforcing the guarantee against me /us nor shall it be necessary for the Bank to join the Borrower in any suit against me/us . I/we further agree that I/we shall not terminate the guarantee and/or any other of the undertakings contained herein unless a sufficient notice of the intention on my/our part to terminate the guarantee had been given to the 207

Bank and a reasonable time is allowed to lapse thereafter for such termination to take effect. Provided, if the Bank deems it necessary to terminate the guarantee only after the satisfaction of it dues by the Borrower the guarantee will terminate only when the Bank intimates to me/us in writing that Borrower, has paid in full all the dues to the Bank. I /we further agree that the guarantee given hereunder is enforceable notwithstanding any dispute or any suit that may be pending between the Bank and the Borrower. 2. That the guarantee given hereunder shall be continuing one notwithstanding that any of the account(s) opened in respect of the loan may at any time or from time to time be brought to credit /nil until notice in writing that the same is /are closed is given by the Bank to me/us. That on demand being made by the Bank for the payment of any amount under this guarantee the same shall be paid without demur or protest by me /us and the notice for the claim sent to me /us shall be conclusive of the amount due from me /us under the terms of the guarantee. The Bank shall be at liberty and without the consent or knowledge of me/us at any time or from time to time to grant to the Borrower or any person liable for him any time or indulgence and to determine enlarge or vary the amount of the loans and advances to take or not to take and if taken to vary exchange or take other security or release or part with any securities held or to be held by the Bank for or on account of the loans and advances or any part thereof and to compound or make any other arrangement with the Borrower or any person so liable with or for the Borrower without releasing or discharging and /or in any manner affecting my/our liability under the guarantee. That the guarantee hereby given is independent and distinct from any security that the Bank has taken or may take in any manner whatsoever whether it be by way of hypothecation, pledge and /or mortgage and /or any other charge over goods, book-debts, movables and other assets and/or any other property movable or immovable and that I/We have not given the guarantee upon any understanding, faith or belief that the Bank has taken and /or may hereafter take any or other such security and that notwithstanding the provisions of Sections 140 and 141 of the Contract Act. 1872 or any other provision of that Act or any other law, I/We will not claim to be discharged to any extent because of the Bank s failure to take any or other such security or in requiring or obtaining any or other such security or losing or parting with for any reason whatsoever including reasons attributable to its default and negligence benefit of any other such 208

3.

4.

5.

security or any rights to any or other such security that have been or could have been taken and in the event of the Bank so losing or parting with security the guarantor (s) shall be deemed to have consented to acquiesce in the same. 6. That without prejudice to the effect in any manner whatsoever of the foregoing clause. Where the loans and advances are secured or intended to be secured in any manner whatsoever by or over any property movable or immovable whatsoever by way of hypothecation, pledge and /or mortgage of and /or any charge over goods, book-debts, movable and other assets by or under any agreements or letter (s) or otherwise I /We will not be concerned in any manner with any or other such security that the Bank has taken or proposes to take or may take and that the Banks failure in requiring or obtaining any or other such security or in the observance or performance of any of the stipulations or terms contained in any agreements if any or letter(s) and the default of the Bank in requiring or endorsing the observance or performance of any of the said stipulations or terms shall not have the effect of releasing me/us from my/our liability and or of prejudicing the Banks rights or remedies against me /us under the Agreement or otherwise . That the Bank shall be at liberty to take other securities for the loans and advances or any part thereof and to release or forbear to enforce all or any of its remedies upon or under such securities and any collateral security or securities now held by the Bank and that no such release or forbearance as aforesaid shall have the effect of releasing me/us from my/our liability or of prejudicing the Banks rights and remedies against me/us under the terms of the guarantee and that I/We shall have no right to the benefit of any other security that may be held by the Bank until the claim of the Bank against the Borrower in respect of the loans and advances and of all the other claims (if any) of the Bank against the Borrower on any other account whatsoever shall have been fully satisfied and then in so far only as such security shall not have been exhausted for the purpose of realising the amount of the said Banks claims and rateably only with other guarantors or other persons (if any) entitled to the benefit of such securities respectively . That notwithstanding anything contained in Section 133 of the Contract Act or in any other provisions of law I/We will not claim to be discharged to any extent because of the Bank varying any of the terms and conditions whether contained in any Agreement(s) or letter(s) and on which the loan has been made to the Borrower and for this purpose and in particular any excess drawings over and above the sanctioned limit of the loans and advances

7.

209

allowed by the Bank at or without the specific request of the borrower shall not discharge me/us from my/our liability under this guarantee. 8. The Guarantor(s) hereby agree (s) that notwithstanding any variation made in the terms of the Hypothecation Agreement/Agreement* etc. dated Or any other Agreement or letter inter alia including variation in the rate of interest, extending the date of payment of the instalments and on which the loan has been made or any composition made between the Bank and the Borrower or any agreement on the part of the Bank to give time to or not to sue the Borrower or the Bank parting with any of the securities given by the borrower the Guarantor(s) shall not be released or discharged of his/their obligations under this Guarantee provided that in the event of any such variation or composition or agreement the liability of the Guarantor(s) shall notwithstanding anything herein contained be deemed to have accrued and the Guarantor(s) shall be deemed to have become liable, hereunder on the date or dates on which the Borrower shall become liable to pay the amount/amounts due under the above referred to Agreements as a result of such variation or composition or agreement. (* Delete whichever is not applicable.)

9.(a)

That if the Borrower shall become insolvent, bankrupt or makes any arrangement or composition with creditors the Bank (notwithstanding payment to the Bank by me/us or any other person of the whole or any part of the amount hereby secured) rank as creditor and may prove against the estate of the borrower for the full amount of all the banks claims against the borrower or agree to and accept any composition in respect thereof and the Bank may receive and retain the whole of the dividends, compensation or other payments thereof to the exclusion of all my/our rights as guarantor(s) for the Borrower in competition with the Bank until all the Banks claims are fully satisfied and I/We will not be paying off the amount payable by me/us or any part thereof or otherwise prove or claim against the estate of the Borrower until the whole of the Banks claims against the Borrower, in respect of all the liabilities whatsoever have been satisfied and the Bank may enforce and recover payment from me/us of the full amount payable by me/us notwithstanding any such proof or composition as aforesaid. The guarantor shall not stand discharged by transfer of the loan account of the Borrower from one branch to another and such transfer of the account shall not be deemed as a variation of the terms of the contract. The guarantor(s) hereby agree and give consent for disclosure by the Bank all or any (a) information and data relating to the guarantor(s) (b) 210

9.(b)

10.

information or data relating to any credit facility availed or/to be availed by the guarantor(s) and default, if any, committed by the guarantor(s) in discharge of his/their such obligation as the Bank may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau (India) Ltd., and any other agency authorized in this behalf by RBI. Further, the guarantor(s) declare that the information and data furnished by him/them to the Bank are true and correct and also agree that the Credit Information Bureau (India) Ltd. and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them and further that the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them to Banks/Financial Institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf. 11. That any notice by way of demand or otherwise may be given by the bank to me/us sending the same by post and addressed to me /us and the notice shall be deemed to have been given at the time when it will be delivered in the ordinary course of post and it will be sufficient in order to prove service of any such notice and to prove that the envelope containing the same was posted and the certificate signed by any officer duly authorised by the Bank in this regard that the envelope was posted, shall constitute such proof. That the guarantee herein contained shall not be determined or affected by the death of the guarantors hereunder but shall in all respects and for all purposes be binding and operative on his/their successor(s), heir(s) and assigns until repayment of all moneys secured by and due to the Bank under the loan granted to the Borrower. We further agree that we shall be jointly and severally liable to the bank for the entire outstanding in respect of the loan and that the Bank shall be at liberty to sue either or any of us in respect of such liability without joining the other or others of us and notwithstanding any decree in any such suit subsequently to sue the other or others of us and to proceed to judgement and execution at the option of the Bank until its claim is fully satisfied.

12.

13.*

Signed and delivered by the said: Shri/Smt(Guarantor). Shri/Smt.. (Guarantor). Place: . Date: .. (* Delete whichever not applicable) 211

Annexure-Car V Arrangement Letter (For financing consumer durables/two wheelers/cars) To, _______________________ _______________________ _______________________ _______________________ (Name & Address of the Borrower) Ref No: Date Dear Sir/Madam, Personal Segment Advances Loan for purchase ofTerm Loan of Rs.. With reference to your application dated ., we hereby sanction you a Term Loan of Rs. (Rupees..only) on the following terms and conditions: 2. Purpose: The loan is sanctioned to you . 2. Margin: 3. Rate of Interest FIXED RATE OF INTEREST Interest on the amount of loan will be applied at the rate of ______ % p.a. at monthly rests, calculated on the highest monthly balance. Further, in the event of major volatility in interest rate or the fixed rate falling below the Base Rate stipulated by the Bank from time to time or for any other reason, whatsoever during the period of this agreement, the Bank may at its sole discretion alter the rate of interest suitably. Bank shall be the sole judge to determine whether such conditions exist or not. In the event of a default in payment or any irregularity in the account, the Bank reserves the right to levy a higher rate of interest, as it deems fit. FLOATING RATE OF INTEREST Interest on the loan amount will be applied at the rate of ____% margin above the Base Rate which is presently _____% p.a. and thus the present effective rate 212 % for the purpose of purchase of

of interest being ____% p.a. calculated on daily balance of the loan amount at monthly rests, provided that the Bank shall at any time, and from time to time be entitled to vary the margin and the base rate at its discretion. Depending on variation of Base Rate and Margin, the effective rate of interest shall vary periodically and the borrower shall be liable to pay the effective rate of interest. You shall be deemed to have notice of changes in the rate of interest when the changes are notified at/displayed at the branch or published in a newspaper or in the website of the Bank or made through the entry in the passbook or the statement of account or by debit to the loan account, etc. and you are liable to pay such revised rate of interest. The Bank has option to reduce or increase the EMI or extend the repayment period consequent upon changes in interest rate. Without prejudice to the Banks other rights and remedies, the Bank shall be entitled to charge at its own discretion such enhanced rate of interest on the loan account(s) either on the entire outstandings or on a portion thereof as it may fix for any default or irregularity on the part of the borrower(s) which in the opinion of the Bank warrants charging of such enhanced rates of interest for such period as the Bank may deem fit. 4. Repayment : The loan is to be repaid in Equated Monthly Instalments of Rs each till the entire loan with the interest is fully repaid. The first instalment commences from the month following the month of purchase of above said article(s)/vehicle. Wherever repayment is through post-dated cheques, the cheques should be dated prior to the 7th of every month. 5. Prepayment Charges: No Prepayment penalty will be charged 6. Security : The loan will be secured by: i) Hypothecation of the aforesaid car purchased out of the loan amount in favour of the Bank. Noting of Banks hypothecation charge in the Books of the RTO and the Registration Book will be essential in respect of finance for two / four wheeler vehicles. You will also be required to furnish a copy of the Registration Book for Banks record after recording Banks hypothecation charge therein by the RTO. j) Third party guarantee of the spouse.* k) Third party guarantee of..* l) Pledge of securities listed hereunder.*

213

7. Insurance: The vehicles shall be kept comprehensively insured by you in your name for the market value or at least 10% above the loan amount outstanding, whichever is higher. Banks hypothecation charge is to be noted on the insurance policy and a copy of the policy is to be delivered to the Bank. 8. Inspection (for vehicles): The Bank reserves its rights to inspect the vehicle and registration documents at regular intervals. 9. Legal expenses, etc. : All expenses like valuers fees, insurance premia, stamp duty, registration charges and other incidental expenses incurred in connection with the loan are to be borne by you 10. Processing charges: Processing charges of Rs (Rupees . only) are payable immediately. 11. Disbursement: The loan/overdraft amount will be disbursed by means direct to the account of the supplier/dealer after execution of prescribed security documents. Please call on us on any working day to execute the documents. The loan is also subject to other terms and conditions as mentioned in the documents(s) executed/to be executed in connection with the loan/overdraft and as may be prescribed by the Bank from time to time. The duplicate copy of this arrangement letter may please be returned to us duly signed by you and guarantor(s) in token of acceptance of the terms and conditions detailed herein within a period of 45 days from the date of this letter. Yours faithfully, Branch Manager (* Delete whichever not applicable) Received the original. Terms and conditions accepted

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Borrower(s) Date:

Terms and conditions of the loan are noted Guarantor(s) Date: (All pages of this Arrangement Letter are required to be stamped and initialled by the Bank. All pages of the copy returned by the borrower are required to be signed by both borrower and guarantor and is to be retained with the document.)

215

ANNEXURE- CAR VI DRAFT POWER OF ATTORNEY To All to Whom These Presents shall come, I/We 1. . 2. .. {Give full name & address of NRI guarantor(s). Where there are more than one guarantor, names and address of all the guarantors should be given}. WHEREAS State Bank of India Branch/RACPC (hereinafter referred to as SBI) granted/agreed to grant loan to the tune of Rs. for purchase of a car/motor vehicle to Shri . and Shri . at my/our request and subject to the condition that the repayment of the above-referred loan granted by SBI is guaranteed by me/us as stated in the sanction letter No. dated . AND WHEREAS I/We have agreed to guarantee the aforesaid loan and are required to execute the Guarantee Agreements in favour of SBI which I/We are not in a position to do expeditiously and/are therefore desirous of appointing some fit and proper person on my/our behalf to do all necessary acts and things in connection with the aforesaid. NOW KNOW YE ALL AND THESE PRESENTS WITNESSETH THAT I/We do hereby nominate, constitute and appoint Shri (Give full name & address of the attorney), whose photograph is pasted below, to be my/our lawful and true Attorney for the purposes hereinafter expressed i.e. to say 1. To execute the Guarantee Agreement as per the format(s) enclosed herewith in connection with the above mentioned loan(s) and any other document necessary for the said purpose and deliver the said document(s) to the concerned branch of SBI and to pay necessary stamp duty on the Guarantee Agreement or any other amount which is required to be paid while executing the said Guarantee Agreement. To appoint Advocates, Solicitors in connection with the above if deemed fit by my attorney and pay their fees/remuneration. To do all the necessary things and acts in connection with and/or incidental to the above stated matters which my/our Attorney deems fit and necessary to do to effectuate the aforesaid.

2.

3.

216

Please paste the photograph of the Power of Attorney holder here

AND I/We, the above named (State the name(s) of the guarantors) do hereby undertake to ratify whatever the Attorney may lawfully do or cause to be done in and by virtue of these presents.

IN WITNESS WHEREOF, I/We, the above named have hereunto set my/our respective hands on this . day of .

(Photograph of the persons executing the Power of Attorney) Signed, Sealed by the within named Signature(s) 1 .. 2 ..

Before Me Notary Public/Magistrate

Note: 1) The photograph of the Power of Attorney holder needs to attested by the executants of the Power of Attorney. 2) The standard format of the Guarantee to be executed by the POA holder should be forwarded to the NRI guarantor either my mail or any electronic mode which we can download. A copy of the said format of Guarantee should be enclosed by the NRI guarantor along with the POA. 217

ANNEXURE- CAR VI-A

To, The Branch Manager, State Bank of India, . . Date: Dear Sir/Madam, EXECUTION OF GUARANTEE AGREEMENT 1. State Bank of India has granted a loan to Shri . for purchase of a car/motor vehicle at my/our request subject to the condition that the repayment of the loan is guaranteed by me/us, as stated in the sanction letter No.. Dated 2. I/We were not in a position to expeditiously execute the Guarantee Agreement in favour of SBI and as such have appointed Shri .. as our Power of Attorney holder for executing the Guarantee Agreement for and on my/our behalf vide Power of Attorney executed on ..(date to be mentioned). 3. I/We have seen a copy of the said Guarantee Agreement and hereby confirm that our Power of Attorney holder Shri has executed the Guarantee Agreement in favour of State Bank of India on.. (date of Guarantee Agreement to be mentioned) in terms of the powers granted to him by us and the said Agreement shall remain fully effectual and binding on me/us, until the above-mentioned loan is discharged in full. Yours faithfully,

(Signature(s) of the NRI guarantors)

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Annexure-CAR VII The Branch Manager, State Bank of India, .. Branch, Dear Sir/Madam, Declaration I here by declare that Sri/ Smt/ Ms.who is being sanctioned a Car Loan for Rsunder the NRI-Car Loan scheme is related to me as The scope of the term relative will be as under: Spouse Father Mother (including step-mother) Son (including step-son) Son's Wife Daughter (including step-daughter) Daughter's Husband Brother (including step-brother) Brothers wife Sister (including step-sister) Sisters husband Brother (including step-brother) of the spouse Sister (including step-sister) of the spouse

Place: Date: SIGNATURE of GUANTANTOR

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Annexure A Under Certificate of Posting (To Borrower & Guarantor) State Bank of India Branch Shri/Smt./Kum . No. Dear Sir/Madam, YourLoan A/c No..with us Please refer to your above loan account with our Branch. 2. With a view to discourage irregularity/over dues in loan account either on account of non payment of EMI for whatever reason or outstanding in the overdraft account exceeding the drawing power, it has been decided to levy enhanced interest rate (hereinafter referred to as penal rate of interest) at the following rates. If the irregularity exceeds EMI or Installment amount, for a period of one month , then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part installment or part EMI remains overdue, then penal interest should not be levied. Dated:

3. Accordingly, we request you to ensure that your loan account(s) with us do not become irregular, for any reason whatsoever. Yours faithfully,

Branch Manager

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Annexure B Under Certificate of Posting (To Borrower & Guarantor) State Bank of India Branch Shri/Smt./Kum . Ref No. Dated:

Dear Sir/Madam, YourLoan A/c No..with us Equated Monthly Instalment (EMI) for the month of..in respect of your captioned account, which was due on(date) has not yet been remitted, which resulted in irregularity in your account* Your above overdraft account became irregular on.. (Date)* 2. As you are aware, irregularity in the account attracts a penal interest @ 2% p.a. (over and above applicable rate of Interest) on the overdue amount for the period of default. With a view to avoid penal interest, please arrange to deposit an amount of Rs. (*Amount of EMI/ or irregularity) on or before..(date) failing which penal interest @ 2% p.a. on the overdue amount will be levied, over and above the applicable rate of interest, for the period the account remains irregular. Yours faithfully,

Branch Manager

* Delete whichever is not applicable

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Annexure- C Name of the Branches authorised for NRI Car Loan CIRCLE DELHI S.N. 1 2 3 4 1 2 3 4 5 6 7 8 9 10 1 2 3 1 2 1 2 3 4 1 2 3 4 5 6 7 8 9 10 11 12 NAME OF THE BRANCHES PER BKG BRANCH NEW DELHI MARINA ARCADE NRI (NEW DELHI) MAIN BRANCH JAIPUR SOUTH EXTN PART II N.R.I BRANCH MUMBAI SPECIALISED PBB, MUMBAI MARGAO PUNE MAIN BRANCH PANAJI MAIN BRANCH MAPUCA SPL PBB DECCAN GYMKHANA PUNE NAPEAN SEA ROAD LINKING ROAD,BANDRA ANDHERI WEST N R I BRANCH (CALCUTTA) CALCUTTA MAIN BRANCH BALLYGUNGE N R I BRANCH(HYDERABAD) SECUNDERABAD S P B BRANCH, BANGALORE MANGALORE KANKANADY, MANGALORE JAYANAGAR II BLOCK, BANGALORE NRI BRANCH BHUJ AHMEDABAD MAIN BRANCH BARODA MAIN BRANCH ANAND ALKAPURI, BARODA BARDOLI PORBANDAR NADIAD RAJKOT NAVSARI JAGANATH PLOT, RAJKOT SURAT 222

MUMBAI

BENGAL

HYDERABAD BANGALORE

AHMEDABAD

CHENNAI

13 1 2

NRI (SPL) AHMEDABAD NRI CHENNAI ADYAR

CHANDIGARH

KERALA

PATNA LUCKNOW BHOPAL

1 2 3 4 5 6 7 8 9 1 2 3 4 5 6 7 8 1 1 2 1 2

JALANDHAR MAIN BRANCH N.R.I.JULLUNDER N.R.I.CHANDIGARH CHANDIGARH MAIN BRANCH LUDHIANA HOSHIARPUR PHAGWARA NAWANSAHAR DOABA BANGA NRI BRANCH THIRUVANATHAPURAM NRI KOCHI TRICHUR KOTTAYAM CANNANORE TIRUR KOLLAM THIRUVALLA SPL.PBB PATNA LUCKNOW MAIN BRANCH KANPUR MAIN BRANCH INDORE BHOPAL MAIN BR

223

SBI HYUNDAI SUBVENTION SCHEME (SANTRO,i10,i20, ACCENT) We have taken up joint promotion activities with Hyundai Motors India Limited (HMIL) for participating in the low interest subvention scheme for all variants of Santro, i10, i20 and Accent. 2. This scheme will be covered under the existing SBI Car Loan Scheme without changing any of the product features except the repayment through fixed interest rates till maturity of the Loan. Under the scheme the Banks IRR will be 12.50% and the customer will be offered interest rate of 8.99% p.a.(fixed) for Santro and i10, and 9.99% p.a.(fixed) for i20 and Accent models of car. The difference between our Interest rate (12.50% p.a.) and the customer interest rate of 8.99% p.a. or 9.99% p.a. will be offered upfront as subvention by HMIL to the Bank. There would be no interest loss to the Bank and the subvention amount will be realized from the initial loan amount. Upon sanction, the branch will disburse the loan amount by debit to the loan account and credit the dealers account after subtracting the subvention amount. 3. The maximum repayment period under the scheme will be 36 months only and maximum loan amount for each model would be restricted to a predefined loan limit as mentioned in the table attached as Annexure-1 (Table-1). In case the borrower proposes to avail a higher loan amount and higher tenure, subvention will not be available and he will be covered under our normal SBI Car Loan Scheme. When a customer desires to avail a lower loan amount than the predefined limit the subvention amount will be reduced proportionately. The subvention amount per Rs 1 Lac is provided in Annexure-1 (Table-2). HMIL will reimburse/ settle the subvention amount to their dealers as per their arrangement. In case any one of these accounts becomes NPA, the account will have to be charged an interest at card rate prevailing at the time of recovering the amount. 4. The scheme will be implemented at all CPCs, all scale III and above branches, all Super Circle of Excellence branches, all PBBs, all district HQ branches, all project area branches and branches authorized by RBOs. The documents after sanction will be sent to their RACPCs if situated in BPR centre for control and maintenance. There is a good scope of bringing the repeat buyers through the scheme as this would be very attractive at a time the petrol prices and the interest rates are high in the market. HMIL will undertake advertisements to promote this scheme. This scheme will be made available till 31.3.2012. The dealers and DSEs will be paid service charge as per extant instructions as applicable to our SBI Car loan Scheme. The product codes for the Scheme have been mentioned in Annexure-1.

224

Annexure-1 (Table-1) Hyundai Subvention Scheme

Product Codes

Model

Fixed Tenure (Month s)

Ex-show Room Price (Rs)

62511116 62511117 62511118 62511119

Santro i10 i20 Accent

36 36 36 36

Eligible Subvention Disbursable Customer EMI Loan Amount Amount Rate (p.a) (Rs) Amount(85 (Rs) (Rs) % of Exshow Room price subject to Maximum) (Rs) 3,51,550 2,98,818 14,800 2,84,018 8.99% 9,501 3,92,061 4,99,205 5,02,869 3,33,252 4,24,324 4,27,439 16,550 15,150 15,250 3,16,702 4,09,174 4,12,189 8.99% 9.99% 9.99% 10,596 13,690 13,790

(Table-2) Product Codes 6251-1116 6251-1117 6151-1118 6251-1119 Model Santro i10 i20 Accent Customers Rate 8.99% 8.99% 9.99% 9.99% Tenure Loan Amount 36 1,00,000 36 1,00,000 36 1,00,000 36 1,00,000 Subventi Disbursable EMI @ on amount to the Customers amount dealer rate 4,960 95,040 3,180 4,960 95,040 3,180 3,570 96,430 3,226 3,,570 96,430 3,226

225

The scheme has been extended for a further period till 30.04.2012 only for Santro and i10 models. The subvention scheme will not be available for i20 and Accent. The maximum repayment period under the scheme will be 36 months only and the maximum loan amount for Santro and i10 models would be restricted to a predefined loan limit mentioned as under : Product Codes Model Fixed Ex-show Eligible Subvention Disbursable Customer Tenure Room Loan Amount Amount Rate (p.a) (Months) Price Amount(85 (Rs) (Rs) (Rs) % of Exshow Room price subject to Maximum) (Rs) 36 351550 298818 14800 284018 8.99% 36 392061 333252 16550 316702 8.99% ( Circular No PBBU/AL/1/1 dated 12th April, 2012) ( The scheme closed on 30.04.2012)

62511116 Santro 62511117 i10

226

LOWER MARGIN SCHEME FOR TATA CARS (Circular. No. PB/AL/1/43 dated 5.03.2012) It has been decided to run a special scheme with Tata Motors Ltd (TML) for financing Tata cars like Indica, Manza, Vista, Indigo and Nano. 2. As per the scheme, Bank will offer 90% LTV on the onroad price of the car instead of 85% to customers who intend to buy Indica, Manza, Vista, Indigo and Nano. As the lower margin could lead to higher credit risk, Tata Motors have agreed to compensate SBI as under:a) Nano Rs 1700 / car loans b) Indica Rs 3000/ car loans c) Indica Vista Rs 3500/ car loans d) Indigo Rs 4000/car loans e) Indigo Manza Rs 5500/ car loans ( It has been decided to extend the scheme for Tata utility vehicles like Sumo Gold, Grande, Aria, Safari and Venture w.e.f. 01.04.2012. The TML compensation to SBI will be as under:f) g) h) i) j) Sumo Gold Rs 4500 / car Grande Rs 5500/ car Aria Rs 8500/ car Safari Rs 7000/car Venture Rs 4000/ car.

Circular. No. PB/AL/1/45 dated 29.03.2012 )

3. The compensation amount will be realized from the loan amount at the time of disbursement to the dealer. Upon sanction, the branch will disburse the loan amount by debit to the Loan account and credit the dealers account after subtracting the above amount. This compensation amount will be credited to Interest account of the Branch. TML will settle this amount to the dealers as per their arrangement. A certificate will be issued by the sanctioning branch to the dealer as per Annexure-1. The compensation will be available only for car loans where 90% LTV has been given and not applicable for LTVs of 85% or lower. This compensation will not be available for the loans sanctioned to Corporate Salary Accounts where 90% LTV is already available. 4. The scheme will be implemented at all CPCs, all scale III and above branches, all PBBs, all district HQ branches, all project area branches and branches authorized by RBOs. The documents after sanction will be sent to their RACPCs if situated in BPR centre for control and maintenance. TML will undertake pan India advertisements to promote this scheme. The dealers and DSEs will be paid service charge as per extant instructions as applicable to our SBI Car loan Scheme. The scheme will be available till 30th September 2012. SBI will be the exclusive banker for this scheme. 227

5. TML has also communicated to their team of Regional Sales Managers and Dealers to work towards increasing their penetration with SBI. As part of the promotional initiatives, a training module for their Sales Team including SBI Car Loan as one of the module has been created with our help and the training has been given to all Tata dealers and their sales team. This scheme is expected to boost our penetration in Tata car loans. Please arrange to advise the sales team, branches to get in touch with Tata dealers and promote the scheme to our advantage.
Annexure-1

Claim Certificate (To be sent by the sanctioning branch to the TML Dealership)

SBI Branch Name & Code Name of Customer & Address Customers Loan Account Number Date of Loan Disbursement Tenure (In Months) On Road Price of Car Margin amount (10%) Rs. Rs 36 M /48 M/ 60 M/ 72 M/ 84 M

Loan Amount (LTV 90%) Loan Amount sanctioned Disbursed Amount to the dealer Amount deducted by the Bank Dealership Name & Location

Rs. Rs. Rs. Rs.

Branch Manager / Head of CPC

228

SBI TOYOTA SUBVENTION SCHEME (COROLLA-PETROL, ETIOS-PETROL, LIVA-PETROL) We have taken up joint promotion activities with Toyota Kirloskar Motors Pvt. Ltd. (TKMPL) for participating in the low interest subvention scheme for their car models viz. COROLLA-Petrol, ETIOS-Petrol and LIVA-Petrol. 2. This scheme will be covered under the existing SBI Car Loan Scheme without changing any of the product features except the repayment through fixed interest rates till maturity of the Loan. Under the scheme the Banks IRR will be 12.25% and the customer will be offered a fixed interest at 10.25% p.a., 8.00% p.a. or 7.25% p.a. for Corolla-Petrol, EtiosPetrol and Liva-Petrol respectively. The difference between our interest rate (12.25% p.a.) and the customer interest rate will be provided upfront by TKMPL as subvention to the Bank. There would be no interest loss to the Bank and the subvention amount will be realized from the initial loan amount. Upon sanction, the branch will disburse the loan amount by debit to the loan account and credit the dealers account after subtracting the subvention amount. The proportionate subvention amount calculated on the basis of table in Annexure-1 will be credited to the Banks interest account. Under the scheme the loan can be availed for 36 months only. A certificate will be issued by the sanctioning branch to the dealer as per Annexure-2. TKMPL will reimburse/ settle the subvention amount to their dealers as per their arrangement. 3. The margin and the maximum loan amount for the Toyota petrol car variants as per the scheme will be as under:Model Ex-showroom Price Margin Maximum Loan Amount COROLLA-Petrol Rs. 12,00,000 25% Rs. 9,00,000 ETIOS-Petrol Rs. 6,00,000 15% Rs. 5,10,000 LIVA-Petrol Rs. 5,00,000 15% Rs. 4,25,000 4. If any of these accounts becomes NPA, the account will have to be charged an interest at card rate prevailing at the time of recovering the amount. In case the borrower proposes to avail a higher loan amount ( based on On-road price) and/or for the tenure other than 36 months, subvention will not be available and he will be covered under our regular SBI Car Loan Scheme. 5. The dealers and DSEs will be paid service charge as per extant instructions as applicable to our SBI Car loan Scheme. The scheme will be implemented at all CPCs, all scale III and above branches, all PBBs, all district HQ branches, all project area branches and branches authorised by RBOs. The documents after sanction will be sent to their respective RACPCs if situated in BPR centre for control and maintenance. 6. TKML will undertake pan India advertisements to promote this scheme. There is scope of bringing good customers desirous of buying a car to take advantage of the depreciation during the month of March. The scheme is available till 31.03.2012 and aims at pulling

229

more number of leads to the Bank, in the short span of period. The product codes for the Scheme have been mentioned in Annexure-1.

Annexure-1 Toyota Subvention Scheme (for Per lac Loan Amount) Product Code Model Interest Rate to Custome r 10.25% 8.00% 7.25% Fixed Loan Tenure Amount (in (In Rs) Months ) 36 36 36 100000 100000 100000 Subvention amount to be subtracted from the loan amount and credited to the interest account of the Bank 2850 5999 7033 Disbursable amount to the dealer EMI @ Customers rate

6251-1120 COROLLAPetrol 6251-1121 ETIOSPetrol 6251-1122 LIVAPetrol

97150 94001 92967

3238 3134 3099

230

It has been decided to extend the SBI Toyota Subvention Car Loan Scheme for a further period till 30.04.2012. The product code, rate of interest, subvention amount and EMI for a loan amount of Rs. 1 lac for each model are incorporated in the below mentioned table. The financing of COROLLA-Petrol is extended at the same earlier rate of interest and subvention amount. However, there are changes in rate of interest and subvention amount applicable to ETIOS-Petrol and LIVA-Petrol. Toyota Subvention Scheme (for Per lac Loan Amount) Product Code Model Interest Rate to Custome r 10.25% 9.50% 8.95% Fixed Loan Tenure Amount (in (In Rs) Months ) 36 36 36 100000 100000 100000 Subvention amount to be subtracted from the loan amount and credited to the interest account of the Bank 2850 3900 4670 Disbursable amount to the dealer EMI @ Customers rate

6251-1120 COROLLAPetrol 6251-1123 ETIOSPetrol 6251-1124 LIVAPetrol

97150 96100 95330

3238 3203 3178

( Circular No PBBU/AL/1/2 dated 13th April, 2012)

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Annexure-2 Subvention Claim Certificate (To be sent by the sanctioning branch to the Toyota Kirloskar Motors Dealership)

SBI Branch Name & Code Name of Customer & Address Customers Loan Account Number Date of Loan Disbursement Tenure (In Months) On Road Price of Car Margin amount (25% /15%) Rs. Rs 36 M

Loan Amount (75% of Ex-showroom price / 85% of Ex-showroom price) Rs. Loan Amount sanctioned Disbursed Amount to the dealer Amount deducted by the Bank Dealership Name & Location Branch Manager / Head of CPC Rs. Rs. Rs.

(The Scheme is closed on 30.04.2012)

232

SBI TWO-WHEELER LOAN SCHEME 1. Purpose To provide finance for purchase of new Two-wheelers viz. scooter/motor cycle/ moped/battery-operated vehicles of reputed make. Authorised Branches All branches are authorised to sanction Two-wheeler loans. Scheme Eligibility i Permanent employees of State/Central Government/Defence Establishments, Public Sector Undertakings, corporations, private sector companies, and reputed establishments are eligible to avail the loan. Professionals, Self-employed, and others who are income tax assesses are also eligible under the scheme. Persons engaged in agriculture and allied activities can also apply.

2.

3. 3.1

(Clarification: Net monthly income will be equivalent to monthly Gross salary net of all statutory deductions like Income Tax and compulsory deductions like Employee Provident Fund etc. No other deductions should be deducted from the monthly Gross Salary to arrive at the NMI. Accordingly, NAI will be 12 times of NMI as defined above.)

ii

For regular petrol/diesel/gas operated scooters & motor cycles: Min. NMI Rs. 6,250/-; or Min. NAI Rs. 75,000/-

3.2

For mopeds and battery-operated Two-wheelers: Min. NMI Rs. 5,000/-; or Min. NAI Rs. 60,000/Loan Amount i. For salaried persons, the maximum loan amount is restricted to 6 times Net Monthly Income (NMI), i.e. net of all deductions including actual monthly tax deductions at source. In case of others, the maximum loan amount is restricted to half of Net Annual Income (NAI), i.e. income as per latest income tax return filed less taxes payable. 233

ii.

iii.

For agriculturists, the net annual income should be arrived based on the nature of their activity (i.e. farming, dairy poultry, orchards, etc) land holding, cropping pattern, yield, etc., and average level of income derived there from in the area. Regular income from all sources can be considered provided the sanctioning authority is satisfied with the proof of income.

iv. 3.3

Type of Loan Term Loan. Margin For all loans: 15% The sanctioning authority may reduce the margin in one of the following case: i. 5% if a check-off is available from a reputed employer ii. 5% depending on the value of connection, details of which should be mentioned in the sanction note. Above relaxations can not be clubbed and a minimum margin of 10% should be maintained.

3.4

3.5

Repayment i. The loan should be repaid in suitable instalments acceptable to the customer in such a manner that the loan is liquidated within a period of 36 months. The customer will have option for repayment in shorter duration. ii. For loans disbursed on or before 15th of the month and on or after 16th of the month, the repayment date should be fixed as 10th and 20th of the following month respectively. The repayment should be fixed on the basis of equated instalments, preferably with a check-off facility in the case of salaried persons. Under check-off arrangement, an Irrevocable Letter of Authority, as per Annexure-Two-Wheeler II, is required to be obtained from the borrower (employee) concerned and a letter of undertaking is to be taken from the borrowers employer as per Annexure-Two-Wheeler III. In case of Govt. Officers, who are themselves the drawing and disbursing authorities and take Two-wheeler loans, a Letter of 234

iii.

iv.

v.

Undertaking on the lines of Annexure- Two-wheeler VIII need only be obtained. vi. Where check-off facility is not available post-dated cheques should be obtained. The procedure relating to obtention and custody of postdated cheques has been circulated vide letter No. PB/106A/381. Wherever Electronic Clearing Service (ECS) is available, the Bank may use the services for paperless debit of instalments. Additionally six undated cheques to cover the loan amount should be obtained from the borrower. Customized repayment for agriculturists through PDC/SI/ECS with 6 cheques to cover the loan amount.

vii.

viii. 3.6

Interest i. All loans should be given only on a floating rate basis, i.e., the effective interest will increase or decrease with every increase or decrease in Base Rate or whenever the rate of interest on Two-wheeler Loans are revised without changing Base Rate, this should be advised to the borrower(s). The equated monthly instalments, however, need not be changed. ii. Interest will be calculated and applied on monthly compounding basis as advised by the Bank from time to time. The Bank also reserves the right to increase the EMI in case of interest rate rise.

iii.

3.6.1 It has been decided to revise the Base Rate upwards by 50 bps from 9.50% to 10% effective from 13th August, 2011. Accordingly, the revised interest rates effective from 13th August, 2011 will be as under: ( Base Rate = 10% p.a. ) Two Wheeler Loans:Up to 3 years: 8.25% above Base Rate i.e. 18.25% p.a It has also been decided to revise the Benchmark Prime lending Rate (referred to SBAR) upwards by 50 bps from 14.25% %p.a to 14.75% p.a. effective from 11th July, 2011 (Circular. No. PB/AL/1/20 dated 12th August, 2011) 235

3.7

Penal Interest

3.7.1 Extant policy on Penal Interest Rate on was reviewed in the light of the special characteristics and requirements of Personal Segment loans, and the Board has approved the revised Penal Interest Rate Policy for Personal Segment loans as under : Extant instructions for standard Personal Segment Loans Penal interest should not be charged for loans upto Rs.25,000/For loans above Rs.25000/- , penal interest rate @ 2% on the entire outstanding for the period of default should be recovered if the EMI remains unpaid for a period of 30 days from the due date. Revised instructions for proposed for standard Personal Segment Loans No change

For Loans above Rs.25000/- , if the irregularity exceeds EMI or Installment amount, for a period of one month , then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part installment or part EMI remains overdue, then penal interest should not be levied*. This provision has been made to avoid application of penal interest on Personal Segment Loan accounts where stipulated EMIs or instalments are being paid regularly by the borrowers.

*Irregularity in the account in CBS may arise for several reasons : (i) small difference in the EMI amount on the PDC and the actual EMI in the system, (ii) delay of a few days in presenting PDC, (iii) change in loan interest rate not large enough to warrant regeneration of repayment schedule etc.. With even an irregularity of Rs.1, the account status becomes Irregular and consequently, after 30 days, penal interest @2% is charged for the entire loan outstanding. As the EMIs can never take care of the irregular portion, the application of penal interest becomes perpetual, which further increases the irregularity and leads to build up of Indicative NPAs. This also leads to customer complaints and avoidable extra work for the operating staff in investigating and making refunds. 3.7.2 As per the extant loan policy of the Bank, the sanctioning authority has been given the discretion for sanctioning waiver of application of penal interest

236

for default in payment of interest/installment in case of Term Loans. It has now been decided to add the following qualifiers for use of this discretion:(a) waiver will only be ex-post facto, i.e. the system will levy penal interest as per the rule, and appropriate authority can permit refund, and (b) discretion should be utilized only where the borrowers claims for waiver is merited on facts such as late presentation of PDCs by us, etc. 3.7.3 Provisions of this policy may also be used by the operating units to correct the existing anomalies in the p-segment loan accounts which have arisen due to application of incorrect penal interest. 3.7.4 Deputy Managing Director & Group Head (NBG) has been given authority, subject to compliance with RBI guidelines, BCSBI/IBA Code etc. to raise the floor limit above the minimum prescribed by the RBI, (Presently Rs.25,000 as per minimum floor prescribed by RBI) within the Bank according to business exigencies but in compliance with RBI guideline. ( Circular No PBBU/HL/PM/9(A) dated 18th June 2010) 3.8 Processing Fee i. 1.22% (inclusive of applicable tax): Min.: Rs.255/- & Max.: Rs 510/ii. The DGM of the module/branch can reduce the fee by up to 50% in case of: a. Short term promotional drives. b. Wherever bulk finance is involved with availability of check-off from reputed employer 1% of loan amount will be charged as processing fee. This may be reduced or even waived by the DGM of the Module/Branch, for strategic reasons under a tie up arrangement with a corporate / institution of repute leading to bulk lending of minimum 25 cases in 3 months time.

3.9

Security i. For loans against vehicles requiring compulsory registration with RTO: a. The loan will be secured by the hypothecation of vehicle and noting of hypothecation charge in the books of RTO and Registration Book And 237

b.

Check-off/PDC or ECS/SI with 6 cheques to cover the loan amount.

ii.

In case the vehicle is not required to be registered with RTO the following may be obtained: a) Check-off/PDC or ECS/SI with 6 cheques to cover the loan amount. And b) Third party guarantee/Co-applicant good for the loan amount (Preferably a co-applicant).

3.10

Payment of Service Charge to Two- Wheeler Dealers i Service Fee at 2.50% (inclusive of service tax) of the loan amount to be paid to the dealer for sourcing applications to the Bank. The maximum service fee is restricted to Rs. 2,500/- and paid along with the loan disbursement by debit to interest account. Documents The following documents are to be obtained: i Application Form Annexure Two-Wheeler I ii Irrevocable Letter of Authority from the borrower Annexure-Two-Wheeler-II iii Letter from the Drawing and Disbursing Officer AnnexureTwo-Wheeler-III iv Letter forwarding demand draft/Bankers cheque to supplier/dealer Annexure-Two-Wheeler-IV v Loan-cum-Hypothecation Agreement Annexure-TwoWheeler-V vi Guarantee Agreement where applicable Annexure-TwoWheeler-VI vii Arrangement Letter Annexure-Two-Wheeler-VII viii Irrevocable Letter of Authority where Drawing and Disbursing Officer is himself the applicant Annexure-Two-Wheeler-VIII Insurance i The vehicle purchased is to be kept comprehensively insured in the name of the borrower for the market value or at least 10% above the loan amount outstanding, whichever is higher and the Banks interest as a hypothecate should be noted in the certificate of insurance and insurance policy. A copy of this is to be retained with the loan documents. ii Insurance register is to be maintained properly. 238

3.11

3.12

3.13

Mode of Disbursement w.e.f. 08.12.2010 :3.13.1 It has been decided that all car loan proceeds should be disbursed only by way of RTGS/NEFT facility. In case the dealer is maintaining account with the branch of State Bank of India, the proceeds should be credited through CBS system. 3.13.2 The existing letter from branch forwarding demand draft/bankers cheque to dealer/supplier needs to be suitably modified to provide for payment of proceeds by way of RTGS/NEFT or through CBS system to the dealers. The format of the letter is attached as Annexure Two-wheeler -IV. 3.13.3 The names and addresses of the dealers are available in LOS and therefore the genuineness of the dealer can be checked from LOS. Also the account number of the dealers should be obtained beforehand, and any change in account number should be dealt with caution. (Letter No. PB/AL/1/272 dated 8th December 2010) 3.14 Inspection i. Inspection is waived for standard asset accounts after the initial inspection. However, if there is a default of 2 monthly instalments, inspection would be required. ii. Inspection to be conducted twice a year for NPA accounts. iii. Inspection Register is to be maintained. Papers to be submitted along with loan application The following papers are to be submitted along with loan application a) Statement of Bank account of the borrower for last 6 months. b) 2 passport size photographs of borrower/guarantor (s). c) Signature identification from bankers of borrower/guarantor (s). d) A copy of passport /voters ID card/PAN card. e) Proof of residence. f) Latest salary-slip showing all deductions and TDS certificate-Form 16 in case of salaried persons. g) Copy of Income Tax Return for last two financial years, duly acknowledged by ITO for professionals, self-employed and others. h) Proof of official address for non-salaried individuals.

4.

239

5.Implementation of Credit Scoring Models (Circular No. PBBU/RSM/1 dated 23.06.10) 5.1Massive growth in retail segments in the recent past, both in terms of product ranges and volumes, combined with a need to move towards implementing global standards in lending, necessitated standardization in credit disbursal and credit risk management. Reserve Bank of India has also issued detailed guidelines for implementation of the new capital adequacy framework (Basel II) for estimating regulatory capital requirements for Corporate as well as Retail credit portfolios under both the Standardized and Advanced approaches. As per the guidelines, for migration to the Internal Ratings-Based approach, retail exposures (i.e. up to a threshold limit of Rs.5 crore in PER, SME and Agriculture segments) are required to be sub-classified into pools based on homogeneity of risk factors. For assigning retail exposures to a pool, a rating system design is required to be put in place, which takes into account borrower risk and transaction risk characteristics, and delinquency of exposures. Probability of Default (PD), Loss Given Default (LGD) and Exposure at Default (EAD) estimates for each of such pools are derived based on historical information. 5.2. Keeping the above in view, the Bank appointed M/s CRISIL Risk and Infrastructure Solutions Limited as consultant to develop scoring models for the Banks retail exposures. The consultant has since completed development of scorecards for all Personal Segment Loan schemes (i.e. Home Loan, Auto Loan, Personal Loan, Education Loan and Two-wheeler Loan) and the appropriate authority has also approved the scoring models for implementation. 5.3 Broadly, the scoring models would serve the following purposes: Facilitate business growth by enhanced efficiencies in the appraisal and sanction process. Reduction of Turnaround Time (TAT). Price the borrower for a given product based on credit scores. Facilitate evaluation of risk through aggregation of data relating to specific clusters and other characteristics. Evaluate quality of assets in the Banks portfolio.

5.4. Salient features of the scoring models There are certain assumptions in the scoring models. It is presumed that the minimum eligibility criteria have been adhered to and therefore, the scoring models do not fix any hurdles rates for such criteria. For example, no upper age limit is fixed as a hurdle rate in the scores, as it is presumed that loan 240

would not be granted to persons beyond the upper age limit prescribed or would only be given after obtaining approval for deviation. The score range is split into multiple score ranges on a 10 grade scale, each corresponding to a credit grade, with grade 1 being the best and grade 10 being the worst in terms of credit behaviour .Credit scores falling into the same credit score range are to be treated at par. The credit grades corresponding to higher scores are indicative of better credit behaviour and vice versa. The scoring models will serve as a credit decision-making tool and will strengthen the existing system of sanction or rejection of loan applications. While proposals which fall in the top score range would be sanctioned, those falling in the bottom range would require to be declined. However, the Circle Management Committee (CMC) would have the power to override this in exceptional cases. For proposals falling in the intermediate range, the proposals may be considered after credit enhancement,(e.g., by selecting the mode of repayment which carries higher scores, improving Loan amount to Value ratio or Net worth to Loan amount ratio etc.) which would improve the overall scores and thereby take the scores into clear sanction range. Otherwise, the proposals would require to be sanctioned by the next higher authority. 5.5 The scoring models will be implemented through the Loan Origination Software (LOS). Since LOS has now been rolled out in all the Circles, it is necessary that all RACPCs/RASMECCs shift to the LOS and the scoring models be put into use. The software vendor has been mandated to incorporate the features in the LOS. No loans may be sanctioned without application of the Scoring Models. 5.6 The models will not be used for differentiation in pricing for now, but will be considered after acquiring some experiences and based on feedbacks obtained from the operating units. The models will be reviewed after six months based on our experience. 5.7 In regard to Education Loan, since the scheme has been drawn up as per IBA Model Education Loan Scheme, loan applications conforming to the terms of the loan scheme cannot be declined based on cut off scores. Therefore, the scoring model will not be used for decision making but will be applied only for determining regulatory capital requirements under Basel II.The credit scores will only be indicative and will be used for post acquisition monitoring tool. 5.8 The existing score cards for Car loan and Personal loan will cease to be applicable hereafter.

241

TWO WHEELER LOAN SCORING MODEL Sl. N Parameter o 1 Age < 28 28 35 35 40 40 45 45 50 > = 50 Highest Educational Qualification < HSC HSC Diploma Degree Post Graduate Doctor Employer Type Pensioner Own Business Unlisted Pvt Listed Pvt Professional MNC Central / State Govt /PSU 4 EMI / Monthly Income 0 0.1 0.1 0.3 > = 0.3 Net worth / Loan Amount 0 1.5 1.5 2.5 2.5 5 >=5

Max. score for the parameter 10

Scores assigned to subparameters 10 6 1 4 4 7

7 3 2 2 6 1 7 12 4 7 1 8 9 12 9 20 20 13 1 14 1 7 9 14

242

Loan amount / Value of vehicle 0 0.8 0.8 1.1 > =1.1 Annual income (Lacs) < 0.5 0.5 1 1 1.5 1.5 2 > =2 TOTAL

16 16 7 1 21 1 12 15 21 18 100

Cut-off ranges proposed: Score ranges > 90 81 90 71 80 61 - 70 51- 60 46 50 41 45 36 40 26 35 < = 25 Credit Grades Grade 1 Grade 2 Grade 3 Grade 4 Grade 5 Grade 6 Grade 7 Grade 8 Grade 9 Grade 10 Lending decision Clear sanction May be considered a)after credit enhancements or b) application to be referred to next higher authority Decline

Description of Parameters used in Two-wheeler loan scoring model: 1. Age The variable estimates the credit worthiness of the applicant based on his age. < 28 years If the applicant is less than 28 years old. 28 35 years If the applicant is 28 years or older but younger than 35 years. 35 40 years If the applicant is 35 years or older but younger than 40 years. 40 45 years If the applicant is 40 years or older but younger than 45 years. 243

45 50 years > = 50 years

If the applicant is 45 years or older but younger than 50 years. If the applicant is 50 years or older.

2. Highest Educational Qualification. This variable takes into account the educational background of the applicant. < HSC HSC Diploma Degree Post Graduate Doctorate If the applicant has not passed the 12th Grade examination. If the applicants highest academic qualification is 12th Grade. If the applicants highest academic qualification is Diploma. If the applicants highest academic qualification is Bachelors Degree (graduate). If the applicants highest academic qualification is Masters Degree (post Graduate). If the applicants highest academic qualification is Doctorate or higher (PhD).

3. Employer Type. This variable takes into consideration the employment details of the applicant. The applicant can fall into one of the following categories. Pensioner Businessman Unlisted Pvt Listed Pvt If the applicant has retired and his main source of income is pension money. If the applicant runs his own business (proprietorship or partnership). If the applicant is a salaried employee in a private unlisted firm. If the applicant is a salaried employee in a private listed firm. If the applicant runs his own practice (lawyers, doctors, chartered accountants, architects, etc with their own practices fall into this category). If the applicant is employed by a Multinational Company ( a firm with significant presence in more than one country). If the applicant is a salaried employee of a Govt. agency or a Public Sector Undertaking. 244

Self Employed Professional MNC

Central/State Govt. / PSU

4. EMI to Monthly Income Ratio. This variable is calculated as the ratio of the EMI to the monthly income of the applicant. The monthly income is calculated as the monthly take home income from the primary source of income only after deducting taxes, PF contribution etc. 0 0.1 If the EMI is less than 10 % of monthly income 0.1 0.3 If the EMI is greater than or equal to 10 % but less than 30 % of monthly income > = 0.3 If the EMI is greater than or equal to 30 % of monthly income 5. Net Worth to Loan Amount Ratio. The net worth of the applicant is calculated as the difference of his net assets and net liabilities. When estimating the assets and liabilities, the vehicle being purchased is not added to the assets and the loan amount being considered/requested should not be added to liabilities. 0 1.5 If net worth is less than one and a half times the loan amount 1.5 2.5 If net worth is equal to or greater than one and a half times the loan amount but less than two and a half times the loan amount. 2.5 5 If net worth is equal to or greater than two and a half times the loan amount but less than five times the loan amount >=5 If net worth is equal to or greater than 5 times the loan amount 6. Loan Amount to Value of Vehicle Ratio. This variable is calculated as the ratio of the loan amount to value of vehicle being bought. 0 0.8 0.8 1.1 > = 1.1 If the loan amount is less than 0.8 times the value of the vehicle being purchased If the loan amount is equal to or greater than 0.8 times but less than 1.1 times the value of vehicle being purchased If the loan amount is equal to or greater than 1.1 times the value of vehicle being purchased

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7. Annual Income. The annual income of the applicant is calculated as the yearly take home income from the primary source of income only after deducting taxes, PF contribution, etc. < 0.5 0.5 1 lac 1 1.5 lac 1.5 2 lac > = 2 lac If the annual income is less than Rs.50000/If the annual income is greater than or equal to Rs.50000/- but less than Rs.100000/If the annual income is greater than or equal to Rs. 100000/- but less than Rs.150000/If the annual income is greater than or equal to Rs.150000/- but less than Rs.200000/If the annual income is greater than or equal to Rs.200000/-

5.9.1 The Retail Scoring Models for Loans under the Personal Banking Segment were rolled out a few days ago. We understand from RACPCs that when the Scoring Models are applied, about 40% of the loans fall in the indeterminate category, and consequently, loans which would have been sanctioned by the RACPCs earlier are now required to be referred to the Network Credit Committee, thereby delaying the sanction process. In a number of cases, proposals are also returned to the sales team for credit enhancements. RACPCs are also not clear about the reasons for which the proposals are put up to the next higher authority for sanction. Also, in case of AGM branches at district headquarter centres, which are not linked to the RACPCs, the proposals would have to go to the Network Credit Committee. Moreover, questions have been raised as to whether proof of factors taken into consideration for scoring should be on record, e.g. Post Graduation Certificate for giving relevant scores etc. 5.9.2 Keeping the above observations in view, we would like to clarify as under: The scoring models have been developed as a risk mitigation tool which will later be used for customer differentiation either from pricing angle or from the angle of giving preference by way of pre-approved loans, cross selling etc. Therefore, the requirement to meet the scores should not delay proposals, increase TAT or put the customer into trouble. There is no need for obtaining documentary proof for the factors reckoned, such as educational qualification, No. of dependents etc. The statement of the applicant should suffice. No additional documents other than those

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stipulated in the respective lending schemes should be demanded because of application of the scoring models. The sales teams need to be educated on scoring models so that all possible credit enhancements are done before the proposals are sent to the RACPCs. Proposals falling within the powers of AGM headed outfits would continue to be sanctioned by the AGM and not be sent to the next higher authority. As the proposal will in any case be reported to the next higher authority, the fact that the score is in the indeterminate range and has been sanctioned should be recorded. This arrangement will, however, be reviewed after two months. ( Circular No. PBBU/RSM/ 310 dated July 17, 2010 )

5.10.1 As we move ahead with implementation of the scoring models and gain more experience, valuable feedback/suggestions on various issues concerning the scoring models and their impacts have been provided by the Circles. We would appreciate if more feedbacks are provided by the Circles with a view to making the system more responsive and robust. 5.10.2 We reiterate that no loans should be sanctioned without application of the scoring models. Please note that Car Loan and Home Loan scoring models have been placed in the LOS and all applications should be processed through the LOS only. In respect of Personal Loan and Two-wheeler Loan, scoring may be applied using Excel sheet till such time scoring models for such schemes are ready for integration into the LOS. Education Loan scoring model will also be integrated into the LOS but will not be a tool for sanction as advised earlier in our circular referred to above. 5.10.3 Several process advantages of implementing the scoring model include: a. Fast pre-screening based on model criteria. b. Scoring is automated. c. In respect of 80% to 90 % of the applications credit decision will be automatic as per the score leading to a much quicker turnaround time(hence the need to mitigate risks at sourcing stage) d. Grow volume in the most profitable segments. e. Maximize return on capital and reduce loan losses significantly by acquiring better quality loans. 247

f. Facilitate risk-based pricing. g. Give a fillip to the sales team/operating staff. No sales/operating staff will be held accountable for losses on account of credit risk so long as credit guidelines/credit scores are followed. h. Better understanding of factors influencing default in the market. i. Retain and attract mass affluent customers through attractive, unbeatable value proposition that we have. j. Implement global standards in lending.

k. Adopt systematic risk driven strategy to target higher business volumes. 5.10.4 Keeping in view the observations and feedback received from the Circles, we would like to advise as under: The scoring models have been developed by CRISIL on Banks behalf based on historical data over the last few years. The models have been constructed using statistical techniques on customer data collected from all the Circles on data collection template. The model development considered various parameters using sampling techniques and a final model has been constructed. Several statistical techniques were used for analyzing and selecting the appropriate parameters for use in the scoring models. The scores assigned to the parameters have also been arrived at using statistical methods such as logistic regression technique. The same parameter could carry different weights for different loans based on the impact it has. Extraneous factors like New Business booked, Takeover business etc. cannot be factored into the system. These factors may be reckoned while considering sanction. The definition of Check off in the scoring models may be taken as in the Risk Scoring Model circular only. This will be in slight variation with the Home Loan circular No. NBG/PBU/HL Home Loan/12/2010 11 dated the 1st July, 2010.This decision is based on risk parameters. In respect of multiple borrowers, the age, educational qualification, relationship with Bank, employer type, stability of income and no. of dependents will be that of the primary borrower. However, for purpose of credit enhancements, monthly income and net worth of all the borrowers combined will be considered.

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 Guarantor has no significance in the scoring model. However, it can be considered for decision taking. It can be a positive factor while considering deviation cases. The scoring models do not, in any way, alter or modify the terms and conditions (eligibility criteria) prescribed for the lending schemes. No additional documents other than those stipulated by the respective lending schemes should be demanded because of application of the scoring models. The model grades the borrower by assigning scores to certain pre-determined parameters of the borrower. Proposals that fall into the indeterminate category may be put up to the next higher authority for administrative clearance, and then sanctioned by the appropriate sanctioning authority after obtaining approval. This is required to bring into focus the fact that the proposals fall in a slightly riskier category and sourcing should strengthen the quality of proposals. No accountability will devolve on the sanctioning authority on account of credit risk for sanctioning proposals which fall into the indeterminate category after the administrative approval. However, reasons for recommending approval for deviations to the next higher authority should be clearly recorded. If, therefore, a judicious decision is taken to sanction the loan, there would be no issue of accountability pertaining to these deviations recommended. We are receiving feedback that proposals in this category are being rejected, which is not the purpose of the model. Measures to increase the score such as improving the LTV ratio and co-opting earning family members as joint borrowers may be taken at the sourcing stage as substantial marks are lost on account of high LTV ratio and low net annual income and larger number of dependents. Otherwise, so long as the loan satisfies our norms, and is in order, it may be referred to the next higher authority for approval. In respect of AGM headed outfits, our instruction contained in our letter No.PBBU/RSM/310 dated the 17th July, 2010 will continue to apply. The scoring models would not be applied to Staff loans. The scoring model does not do away with the requirement of CIBIL reference. For calculation of the LTV ratio in Home Loan scoring model, value of the property would include estimated cost of construction of the

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house and constructed.

value of the land on which new house is to be

On analysis of some of the live applications sourced at major centres, it was observed that most of the proposals did not satisfy the minimum eligibility criteria prescribed for the loan scheme and therefore would not have been eligible for sanction even without application of the scoring model. For example, in the following Home Loan proposals, the loan value is greater than the security value (Home Loan scheme prescribes a minimum LTV ratio of 85%): Case No.1 Loan amount : Rs.3.20 lac Property value : Rs.2.00 lac Loan amount cannot be greater than 85% of the property value. Rejected by the Model Loan amount cannot be greater than 85% of the property value. Rejected by the Model Loan amount cannot be greater than 85% of the property value. Rejected by the Model Loan amount cannot be greater than 85% of the property value. Classified as Risk Grade 6 Loan amount cannot be greater than 85% of the property value. Classified as Risk Grade 6 EMI : Rs.15265/NMI: Rs.15539/EMI/NMI ratio cannot exceed 30% Rejected by the Model

Case No.2

Loan amount Rs.8.00 lac Property value : Rs.6.00 lac

Case No.3

Loan amount : Rs.4.00 lac Property value :Rs.4.00 lac

Case No.4

Loan amount : Rs.5.88 lac Property value: Rs.6.00 lac Level of funding :98%

Case No.5

Loan amount : Rs.7.00 lac Property value : Rs.6.00 lac

Case No.6

Loan amount :Rs4.35 lac EMI/NMI ratio 98%

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Such proposals, in any case, would not have gone through the LOS without raising deviations. The fact that a large proportion of applications sourced by the sales team falls in the indeterminate category suggests that many of the proposals are in the higher risk category. Therefore, there is an imperative need to educate the sales team with a view to improving the quality of proposals. ( Circular No.- PBBU/RSM/ 319 dated August 11, 2010) 5.11.1 The Retail Scoring Models have begun to be used by circles and RACPCs, RCPCs and branches have started applying scoring models. Also, Gyanshalas are being conducted in Circles to sensitize operating staff regarding the Retail Scoring Models, its need and the need for bringing in better quality proposals.

5.11.2 Further, it has been advised through Corporate Centre letter no. PBBU/RSM/310 dated 17th July, 2010 that the scoring models are only risk mitigation tools, therefore, the requirement to meet the scores should not delay proposals, increase TAT or put customers into trouble. In this letter we have also instructed the Circles that proposals where the scores fall in indeterminate category range that proposals falling within the powers of AGM headed outfits are to be sanctioned without waiting for administrative approval of next higher authority and control return to be sent specifically mentioning that the account falls in indeterminate category. We have come across similar problems in RCPCs where proposals having score within the indeterminate range, which were otherwise to be sanctioned by the heads of RCPCs are now required to be forwarded to next higher authority for clearance. In this process, either there is a delay in loan sanctioning or some amount of business is lost to other banks/financial institutions. 5.11.3 Keeping the above observations in view, we would like to clarify as under:(a) The scoring models have been developed as a risk mitigation tool which will later be used as customer differentiation tool either from pricing angle or from angle of giving preference by way of pre-approved loans, cross selling etc. The requirement of scores should not delay proposals, increase TAT or put customer to more trouble. (b) Proposals that fall into the Indeterminate category at RCPCs, may be continued to be sanctioned and put up to the Assistant General Manager

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of the Region for control clearly indicating that the loan was in the indeterminate category. (c) The sales teams need to be educated on scoring models so that all possible enhancements are done before the proposals are sent to RCPCs. (d) This arrangement will be reviewed after two months i.e. by end of October 10. ( Circular No. PBBU/RSM/325 dated September3, 2010 )

6. Up-selling of Two Wheeler Loans to Car Loan Customers: It has been decided to cross sell our products to our prospective customers. We have already advised that branches should open Savings Bank account for the borrowers. Besides, there would be many Car Loan applicants who have adequate income and are eligible for a higher loan amount but avail only lower amount required to buy a car. In such cases, there is an opportunity for the branches to sell our Two Wheeler Loan Scheme to such prospective customers especially to those who have college going children. We expect that this would be availed of by many applicants who are in need of a Two Wheeler Loan also, but are apprehensive that the Bank may not finance them two loans at a time. Moreover, this would also increase the portfolio size of the Bank to a certain extent. 2. Please, therefore, arrange to advise the operating units to persuade the new Car Loan customers to avail Two Wheeler Loan for their son/daughter if required. The Car Loan and Two Wheeler Loan may be granted after taking into account the eligibility and EMI cheque can be obtained for the combined amount. We are working on a separate combined loan product to take care of this requirement. In the mean time, while sanctioning this combined loan to eligible customers, the operating units may satisfy the following:a) The income level is sufficient to take care of the additional Two Wheeler Loan in his/ her name. b) Credit score is as per Banks stipulation; c) All other terms and conditions applicable to the loans should be adhered to.

( Circular No. PB/AL/1/27 dated 7th October 2011)

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Annexure-Car I

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Annexure-Two-Wheeler-II ______________________________ ______________________________ (Address of the disbursing authority) SBI TWO-WHEELER LOAN SCHEME IRREVOCABLE LETTER OF AUTHORITY State Bank of Indias *(Name of the Scheme). Employee No...Designation Dear Sir/Madam, I, .. am an employee of your organisation. The State Bank of India,..Branch, have agreed to sanction a loan of Rs. (Rupees .. only) to me under their captioned scheme for purchase of.. 5. (a) I hereby authorise you to recover by deduction from my salary payable to me by you, a sum of Rs. (Rupees only), every month, beginning from the month of.representing the monthly instalment payable by me to the State Bank of India .. Branch, for the aforesaid loan and remit the amount to the aforesaid branch of the Bank. (b) I hereby authorise you to credit/continue to credit my salary to State Bank of India ... Branch, payable to me by you every month, since the monthly instalments for repayment of the aforesaid loan are to be recovered by the..Branch of the SBI by debit to my savings Bank/Current Account No..with them, in accordance with an undertaking furnished by me to the Bank. 6. In case of my death, retirement, resignation or discontinuing the service for any reason, I hereby authorise you to pay an amount payable on my account including amount payable by way of terminal benefits like P.F. and gratuity by reason aforesaid, to State Bank of India,.. Branch, towards the balance outstanding in the aforesaid loan account together with interest costs and /or any monies as may be due to the Bank in respect of the aforesaid loan. 261

7. I hereby agree that I shall not be entitled to withdraw or revoke this authority even in case of my transfer, or otherwise, until the whole of my debt inclusive of interest etc. to the State Bank of India ... Branch is liquidated, and written consent of the Bank is obtained. Yours faithfully, Witness: Signature. Signature Full NameFull Name.. DesignationDesignation..... Branch Branch/Dept. Date Date ... Note: Delete 2(a) or 2(b) whichever is not applicable.

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Annexure-Two-Wheeler-III SBI TWO-WHEELER LOAN SCHEME The Branch Manager, State Bank of India, .. Dear Sir/Madam, State Bank of Indias scheme of Shri/Smt./Kum. . S/o /D/o /W/o SHRI.. SBI TWO-WHEELER LOAN SCHEME IRREVOCABLE LETTER OF AUTHORITY We certify that Shri/Smt. is a permanent employee of this organisation drawing gross salary of Rs. per month. 2. In view of your agreeing to grant to him/her a loan under the captioned scheme, we have received and noted*: i) The irrevocable letter of authority from the employee, for deducting a sum of Rs.. from his/her salary per month beginning from the salary for the month of .. and remit the same to you for crediting to his loan account till we receive further instructions from you. ii) the irrevocable letter of authority from the employee, for crediting his/her salary every month to his/her account with State Bank of India,.. Branch, till we receive further instructions from you. iii) the irrevocable letter of authority in respect of making payment out of any amount payable to the employee including the amount payable by way of terminal benefits like P.F. and gratuity in case of his/her death, retirement, resignation or discontinuing the service for any reason whatsoever, to State Bank of India, .. Branch, towards the balance outstanding in the aforesaid loan account together with interest etc., and such payment shall be deemed to be a payment to the employee or on his account. 263

iv) the employee agrees that he/she will not be entitled to withdraw or revoke his/her authority, even in case of his/her transfer, until the whole of his/her debt inclusive of interest to the State Bank of India, Branch is liquidated and written consent of the Bank is obtained. 3. In the event of transfer of the employee elsewhere, we undertake to convey the instructions to the transferee office under advice to you, immediately.

Place: Date:

Signature of the Officer (Authorised to disburse salary and allowances)

*Note: delete 2(i) or 2(ii) whichever is not applicable.

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Annexure-Two-Wheeler-IV SBI TWO-WHEELER LOAN SCHEME

Letter from Branch to dealer/supplier To, M/s ___________________ _______________________ _______________________ (Name & Address of the Dealer/Supplier) No. Dear Sir/Madam, Ref: your Performa invoice / letter No. ___________ dated __________for supply of_________________ to Shri / Smt / _______________________________ (1st applicant) Shri / Smt / _______________________________ (2nd applicant) Hereinafter jointly referred to as borrowers. With reference to your Performa invoice/letter no. _______ dated ________, we have today credited your account No. _______ with ______________ (Name of The Bank), ------------- (Name of the Branch)(UTR Number _____________) on behalf of Shri/Smt. ______________________________by Rs._________ (Rupees___________), being the cost of _____________ to be supplied/delivered to Shri/Smt._________________________. Please forward to us your stamped receipt for the amount. The vehicle may be registered in the name of the 1st applicant only. 2. Please note that the amount is to be appropriated specifically towards the purchase prices of the said vehicles. It should not be appropriated by you towards or set off against any other debt or liability due or owing to you by Shri/Smt. _______________________________ (Name of the borrower). Please note that the Bank will have the right to call back the amount if you Date:

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fail to deliver the vehicle to the above named person against his/her acknowledgement. 3. Please advise us the full particulars such as engine number/chassis number/year of manufacture etc. of the vehicle delivered to Shri/Smt. ___________________________________. 4. Shri/Smt. ____________________ and Shri/Smt/ ______________________ have been sanctioned by us a Term Loan of Rs. ______________ jointly for purchase of the vehicle. Please, therefore, ensure that the Hypothecation Charge over the vehicle to be supplied to Shri/Smt.____________________ is registered in favour of State Bank of India, ________________ Branch in the books of Regional Transport Officer. Please arrange to obtain a Certificate from RTO to the effect of having registered our Hypothecation charge, which may be forwarded to us for our record. The relative form signed by the borrower and the Bank for this purpose is forwarded herewith. Yours faithfully, Branch Manager (To be filled in and returned to the Branch by the Dealer supplying the vehicle) Vehicle Make : Date of Delivery :

Engine Number :

Chassis Number :

(Signature of the dealer)

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Annexure-Two-Wheeler-V LOANCUM-HYPOTHECATION AGREEMENT (To be stamped as Deed of Hypothecation and Agreement in accordance with the Stamp Act of the state in which the document is executed. Not to be attested.) The State Bank of India having its Branch Office at (Hereinafter called the Bank which expression shall include its successors and assigns) having at the request of Shri / Smt. / Kum Son / Daughter / Wife of at present aged around .. and residing at . (hereinafter, called the Borrower which expression shall include his/her respective heirs, executors, administrators and assigns) agreed to grant to the Borrower a loan of Rs to enable the Borrower to purchase a 2/4 wheeler vehicle more particularly specified and described in Schedule I hereto ( hereinafter referred to as the vehicle) for his/her personal use as set forth in the Borrowers application dated the . a copy of which is annexed and forms part of this Agreement, such loan to be secured as herein provided. IT IS HEREBY AGREED AS FOLLOWS: 1. The request for grant of the loan by the Borrower shall be deemed to constitute the basis of this Agreement and the loan advanced/to be advanced by the Bank to the Borrower. 2. The Borrower hereby agrees that the loan shall, inter alia, be governed by the terms hereof. The Borrower expressly agrees and undertakes to notify the Bank in writing of any circumstance, affecting the correctness of any of the particulars set forth in his application immediately after the occurrence thereof. The Borrower expressly agrees and undertakes that the Loan shall be used exclusively for the purposes set forth in his application and that no change shall be made therein without the written consent of the Bank. The Borrower agrees that the Loan shall be paid by the Bank to an authorized dealer of the vehicle directly against their invoice on receiving information that the vehicle would be delivered to him on payment/within . days of payment. However, in deserving cases where the borrower has purchased the vehicle with his own funds, the Bank may provide him loan upto ..% of the cost of the vehicle. The Borrower shall produce to the Bank

3.

4.

5.

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the original receipts for having purchased the vehicle and shall hand over photocopy of the said receipt to the Bank for its record. 6. The borrower shall repay to the Bank, the amount of loan and interest thereon in equated monthly installments of Rs.___________ each commencing from the month of _________ 20___ till the entire loan with interest is fully repaid. The equated monthly instalment also includes interest component. The Bank has option to reduce or increase the EMI or extend the repayment period consequent upon changes in interest rate. FIXED RATE Interest on the amount of loan will be applied at the rate of ______ % p.a. at monthly rests, calculated on the highest monthly balance. Further, in the event of major volatility in interest rate or the fixed rate falling below the Base Rate stipulated by the Bank from time to time or for any other reason, whatsoever during the period of this agreement, the Bank may at its sole discretion alter the rate of interest suitably. Bank shall be the sole judge to determine whether such conditions exist or not. (To be deleted where floating rate of interest is applicable) FLOATING RATE Interest on the amount of loan will be applied at the rate of ____% margin above the Base Rate which is presently _____% p.a. and thus the present effective rate of interest being ____% p.a. calculated on daily balance of the loan amount at monthly rests, provided that the Bank shall at any time, and from time to time be entitled to vary the Margin and the Base Rate at its discretion. Depending on variation of Base Rate and Margin, the effective rate of interest shall vary periodically and the borrower shall be liable to pay the effective rate of interest. (To be deleted where fixed rate of interest is applicable) Such revised rate of interest shall always be construed as agreed to be paid by the borrower(s) and hereby secured. Borrower(s) shall be deemed to have notice of change in the rate of interest when the changes are notified at/displayed at the branch or published in a newspaper or in the website of the Bank or made through the entry in the passbook or the statement of account or by debit to the loan account. Without prejudice to the Banks other rights and remedies, the Bank shall be entitled to charge at its own discretion such enhanced rate of interest on the loan account(s) either on the entire outstandings or on a portion thereof as it 268

may fix for any default or irregularity on the part of the borrower(s) which in the opinion of the Bank warrants charging of such enhanced rates of interest for such period as the Bank may deem fit. Besides, the Bank shall also charge a penalty, the rate of which shall be at the discretion of the Bank, for every bounced cheque for any reason whatsoever in addition to the enhanced rate of interest as applicable.

7.

Further, the Bank shall, at any time, be entitled to give notice to the borrower of its intention to charge and may thereafter charge interest at such higher rate than the rate hereinbefore mentioned, as the Bank may specify. The Equated Monthly Instalments will have to be paid till the entire loan and the interest is fully repaid. Further, the amount of Equated Monthly Instalment may change/increase as may be decided by the Bank. On demand the Borrower agrees to deliver to the Bank post-dated cheques for the monthly instalments and the Borrower warrants that the cheques will be honoured on first presentation. Any non-presentation of a cheque due to any reason will not affect the liability of the Borrower to pay the monthly instalments or any other sum. The Borrower agrees to forthwith replace the cheques/issue fresh cheques, if required by the Bank. The Borrower shall not be entitled to call upon the Bank to refrain from presenting any cheque for payment and if the Borrower does so, the Bank shall nevertheless be entitled to present the cheque for payment and in the event of dishonour the provisions under Chapter XVII of the Negotiable Instruments Act, 1881, shall apply. As security for the repayment of Loan together with interest at the rates stipulated above and any other charges, costs and expenses payable to or incurred by the Bank in relation thereto, the Borrower hereby creates a first charge in favour of the Bank by way of hypothecation of the vehicle together with all its components, accessories, attachments etc. specified and described in the Schedule below, purchased/to be purchased by the Borrower with the Loan wherever it shall be kept. The Borrower shall not during the continuance of this security create any charge or encumbrance of any kind over the hypothecated vehicle nor shall dispose of the same without repaying in full the Loan amount, interest, costs, charges and expenses secured here under.

8.

9.

10.

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10.(a) The Borrower shall keep the hypothecated articles in good working order, repair and condition and shall permit the officers and other persons deputed by the Bank to have access to and inspection of it if required by the Bank. 10.(b) In case of hypothecation of vehicles the Banks charge shall be registered with appropriate Road Transport authority (where ever applicable) and the Borrower undertakes to get such hypothecation to the Bank marked in Registration book of the vehicle immediately after purchase of the vehicle. 11. The borrower will intimate immediately after purchase of the vehicle the location where the vehicle will be garaged. Any change in address/location of the garage will be intimated forthwith. The Bank its agents and nominees shall be entitled at all times to enter any place where the hypothecated vehicle is garaged, and on the occurrence of either of (i) default in payment of more than one instalments of bouncing of more than one post dated cheques, or (ii) any other event which in the opinion of the Bank will adversely affect the security available to the Bank, they will be authorized to take possession of/seize the vehicle and eventually sell it off in auction/private treaty for satisfaction of the Banks dues. The Bank shall be entitled at all times to apply any other money or moneys in its hand stand to the credit of or belonging to the Borrower in or towards payment of any amount for the time being payable to the Bank and recover at any time from the Borrower by suit or otherwise the balance remaining payable to the Bank. The Bank also preserves the right to note lien on other deposits of the Borrower as additional security for the loan. 13. Where ever a vehicle has been purchased out of the aforesaid loan, the Borrower shall keep the vehicle comprehensively insured in his/her name with an Insurance Company approved by the Bank for the market value or to the extent of at least 10% over the loan amount outstanding, whichever is higher and the Banks interest as a hypothecatee should be noted in the certificate of insurance and the insurance policy. The borrower shall produce to the Bank from time to time relevant Policy or Policies for its inspection and also proper evidence to the satisfaction of the Bank and the Borrower hereby undertakes punctually to pay the premium due for such insurance and to produce the receipts for the premium paid to the Bank for its inspection from time to time and if the Borrower should fail 270

12.

to keep insured the said vehicle or to produce such policy or policies and receipts to the Bank on demand, the Bank shall be at liberty but not bound to effect such insurance and pay such premium at the expense of the Borrower and all expenses to be incurred by the Bank in this connection will be made by debit to the Borrowers loan account and will form part of the Borrowers indebtedness to the Bank and secured fully by the hypothecation hereby created. The Borrower agrees that any such sum received under any such insurance shall be applied in or towards liquidation of the amount due to the Bank on account of the said Loan interest and other charges as aforesaid and in the event of there being a surplus the same shall be refunded to the Borrower. 13(a) The borrower (s) hereby further agree that as precondition of the loan advances given to me/us by the Bank, that in case of default in repayment of the loan /advances or in the repayment of the interest thereon or any of the agreed instalment of the loan on due date/s, the Bank and/or the Reserve Bank of India will have an unqualified right to disclose or publish my/our name(s) as defaulter in such manner and through such medium as the Bank or Reserve Bank of India in their absolute discretion may think fit. The borrower/s hereby agree and give consent for disclosure by the Bank all or any (a) information and data relating to the borrower/s (b) information or data relating to any credit facility availed or/to be availed by the borrower/s and default, if any, committed by the borrower/s in discharge of his/their such obligation as the Bank may deem appropriate and necessary, to disclose and furnish to Credit Information Bureau (India) Ltd., and any other agency authorized in this behalf by RBI. Further, the borrower/s declare that the information and data furnished by him/them to the Bank are true and correct and also agree that the Credit Information Bureau (India) Ltd. and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them and further that the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them to Banks/Financial Institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf. The Borrower agrees that if any instalment due hereunder shall not be paid on due date in the manner set out in clause 6/7 here in above the agreement of the Bank to accept repayment of the said loan by instalments shall at the option of Bank forthwith determine and the whole balance of the said loan

13 (b)

14.

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unpaid at the date of such default shall immediately thereupon become payable to the Bank. 15. This Agreement shall operate as a continuing security for all monies, indebtedness and liabilities aforesaid due by the Borrower to the Bank. It is agreed between the parties that at the written request of the Borrower the Bank may transfer the account to any of the branches within India from time to time provided sufficient notice in advance is given by the Borrower to the Bank. The Bank shall also be entitled to transfer the loan account to any other branch of the Bank after due notice to the Borrower. Nothing contained in this Agreement shall be construed as excluding the general lien of the Bank for any balance due to the Bank of any account or in respect of any liability of the Borrower to the Bank. Nothing herein contained shall prejudice any rights or remedies of the Bank in respect of any other present or future security guarantee obligation or decree for any indebtedness or liability of the Borrower to the Bank.

16.

17.

SCHEDULE REFERRED TO ABOVE (Details of article(s) /vehicle to be purchased)

Dated this .. day of 200

(BORROWER)

272

Annexure-Two-Wheeler-VI GUARANTEE AGREEMENT (To be stamped as an agreement in accordance with the Stamp Act in the State in which this document is executed. Not to be attested.)

STATE BANK OF INDIA,

Place Date.

Dear Sir/Madam, In consideration of the Sate Bank of India (hereinafter referred to as Bank) having agreed to grant/granted at my / our request and advance of Rs (Rupees only) by way of loan to Shri/Smt /Kum..son of/wife of/daughter of Shri.. (hereinafter referred to as the Borrower) for . (purpose of loan) under the Banks Scheme. I/We hereby guarantee repayment of all moneys at any time payable by the Borrower to the Bank in respect of the loan made to the Borrower with interest thereon and the due performance and observance by the Borrower of the terms pertaining to the loan and the payment of all costs and expenses incurred by the Bank in relation thereto and I /We also agree to pay and make good to the Bank on demand all losses, cost, damages and expenses occasioned to the bank by reason of non-payment of the said moneys ,costs and expenses or any part thereof or the breach ,non-performance or nonobservance of any of the terms as aforesaid .subject to the terms and conditions hereinafter contained : That my/our liability under this guarantee is co-extensive with that of the Borrower as if I/we were the principal debtor(s) of the Bank and the amount due under this agreement will be recoverable from me /us without any recourse to the Borrower and it shall not be obligatory on the bank to call upon the Borrower to pay the amount first or to take any action against the Borrower before enforcing the guarantee against me /us nor shall it be necessary for the Bank to join the Borrower in any suit against me/us . I/we further agree that I/we shall not terminate the guarantee and/or any other of the undertakings contained herein unless a sufficient notice of the intention on my/our part to terminate the guarantee had been given to the Bank and a 273

reasonable time is allowed to lapse thereafter for such termination to take effect. Provided, if the Bank deems it necessary to terminate the guarantee only after the satisfaction of it dues by the Borrower the guarantee will terminate only when the Bank intimates to me/us in writing that Borrower, has paid in full all the dues to the Bank. I /we further agree that the guarantee given hereunder is enforceable notwithstanding any dispute or any suit that may be pending between the Bank and the Borrower. 2. That the guarantee given hereunder shall be continuing one notwithstanding that any of the account(s) opened in respect of the loan may at any time or from time to time be brought to credit /nil until notice in writing that the same is /are closed is given by the Bank to me/us. That on demand being made by the Bank for the payment of any amount under this guarantee the same shall be paid without demur or protest by me /us and the notice for the claim sent to me /us shall be conclusive of the amount due from me /us under the terms of the guarantee.

3.

4.

The Bank shall be at liberty and without the consent or knowledge of me/us at any time or from time to time to grant to the Borrower or any person liable for him any time or indulgence and to determine enlarge or vary the amount of the loans and advances to take or not to take and if taken to vary exchange or take other security or release or part with any securities held or to be held by the Bank for or on account of the loans and advances or any part thereof and to compound or make any other arrangement with the Borrower or any person so liable with or for the Borrower without releasing or discharging and /or in any manner affecting my/our liability under the guarantee. That the guarantee hereby given is independent and distinct from any security that the Bank has taken or may take in any manner whatsoever whether it be by way of hypothecation, pledge and /or mortgage and /or any other charge over goods, book-debts, movables and other assets and/or any other property movable or immovable and that I/We have not given the guarantee upon any understanding, faith or belief that the Bank has taken and /or may hereafter take any or other such security and that notwithstanding the provisions of Sections 140 and 141 of the Contract Act. 1872 or any other provision of that Act or any other law, I/We will not claim to be discharged to any extent because of the Bank s failure to take any or other such security or in requiring or obtaining any or other such security or losing or parting with for any reason whatsoever including reasons attributable to its default and negligence benefit of any other such security or any rights to any or other such security that have been or could have been taken and in the event of the Bank so losing 274

5.

or parting with security the guarantor (s) shall be deemed to have consented to acquiesce in the same. 6. That without prejudice to the effect in any manner whatsoever of the foregoing clause. Where the loans and advances are secured or intended to be secured in any manner whatsoever by or over any property movable or immovable whatsoever by way of hypothecation, pledge and /or mortgage of and /or any charge over goods, book-debts, movable and other assets by or under any agreements or letter (s) or otherwise I /We will not be concerned in any manner with any or other such security that the Bank has taken or proposes to take or may take and that the Banks failure in requiring or obtaining any or other such security or in the observance or performance of any of the stipulations or terms contained in any agreements if any or letter(s) and the default of the Bank in requiring or endorsing the observance or performance of any of the said stipulations or terms shall not have the effect of releasing me/us from my/our liability and or of prejudicing the Banks rights or remedies against me /us under the Agreement or otherwise . That the Bank shall be at liberty to take other securities for the loans and advances or any part thereof and to release or forbear to enforce all or any of its remedies upon or under such securities and any collateral security or securities now held by the Bank and that no such release or forbearance as aforesaid shall have the effect of releasing me/us from my/our liability or of prejudicing the Banks rights and remedies against me/us under the terms of the guarantee and that I/We shall have no right to the benefit of any other security that may be held by the Bank until the claim of the Bank against the Borrower in respect of the loans and advances and of all the other claims (if any) of the Bank against the Borrower on any other account whatsoever shall have been fully satisfied and then in so far only as such security shall not have been exhausted for the purpose of realising the amount of the said Banks claims and rateably only with other guarantors or other persons (if any) entitled to the benefit of such securities respectively . That notwithstanding anything contained in Section 133 of the Contract Act or in any other provisions of law I/We will not claim to be discharged to any extent because of the Bank varying any of the terms and conditions whether contained in any Agreement(s) or letter(s) and on which the loan has been made to the Borrower and for this purpose and in particular any excess drawings over and above the sanctioned limit of the loans and advances allowed by the Bank at or without the specific request of the borrower shall not discharge me/us from my/our liability under this guarantee.

7.

275

8.

The Guarantor(s) hereby agree (s) that notwithstanding any variation made in the terms of the Hypothecation Agreement/Agreement* etc. dated Or any other Agreement or letter inter alia including variation in the rate of interest, extending the date of payment of the instalments and on which the loan has been made or any composition made between the Bank and the Borrower or any agreement on the part of the Bank to give time to or not to sue the Borrower or the Bank parting with any of the securities given by the borrower the Guarantor(s) shall not be released or discharged of his/their obligations under this Guarantee provided that in the event of any such variation or composition or agreement the liability of the Guarantor(s) shall notwithstanding anything herein contained be deemed to have accrued and the Guarantor(s) shall be deemed to have become liable, hereunder on the date or dates on which the Borrower shall become liable to pay the amount/amounts due under the above referred to Agreements as a result of such variation or composition or agreement. (* Delete whichever is not applicable.)

9.(a)

That if the Borrower shall become insolvent, bankrupt or makes any arrangement or composition with creditors the Bank (notwithstanding payment to the Bank by me/us or any other person of the whole or any part of the amount hereby secured) rank as creditor and may prove against the estate of the borrower for the full amount of all the banks claims against the borrower or agree to and accept any composition in respect thereof and the Bank may receive and retain the whole of the dividends, compensation or other payments thereof to the exclusion of all my/our rights as guarantor(s) for the Borrower in competition with the Bank until all the Banks claims are fully satisfied and I/We will not be paying off the amount payable by me/us or any part thereof or otherwise prove or claim against the estate of the Borrower until the whole of the Banks claims against the Borrower, in respect of all the liabilities whatsoever have been satisfied and the Bank may enforce and recover payment from me/us of the full amount payable by me/us notwithstanding any such proof or composition as aforesaid. The guarantor shall not stand discharged by transfer of the loan account of the Borrower from one branch to another and such transfer of the account shall not be deemed as a variation of the terms of the contract. The guarantor(s) hereby agree and give consent for disclosure by the Bank all or any (a) information and data relating to the guarantor(s) (b) information or data relating to any credit facility availed or/to be availed by the guarantor(s) and default, if any, committed by the guarantor(s) in discharge of his/their such obligation as the Bank may deem appropriate and necessary, to disclose 276

9.(b)

10.

and furnish to Credit Information Bureau (India) Ltd., and any other agency authorized in this behalf by RBI. Further, the guarantor(s) declare that the information and data furnished by him/them to the Bank are true and correct and also agree that the Credit Information Bureau (India) Ltd. and any other agency so authorized may use, process the said information and data disclosed by the Bank in the manner as deemed fit by them and further that the Credit Information Bureau (India) Ltd. and any other agency so authorized may furnish for consideration, the processed information and data or products thereof prepared by them to Banks/Financial Institutions and other credit grantors or registered users, as may be specified by the Reserve Bank in this behalf. 11. That any notice by way of demand or otherwise may be given by the bank to me/us sending the same by post and addressed to me /us and the notice shall be deemed to have been given at the time when it will be delivered in the ordinary course of post and it will be sufficient in order to prove service of any such notice and to prove that the envelope containing the same was posted and the certificate signed by any officer duly authorised by the Bank in this regard that the envelope was posted, shall constitute such proof. That the guarantee herein contained shall not be determined or affected by the death of the guarantors hereunder but shall in all respects and for all purposes be binding and operative on his/their successor(s), heir(s) and assigns until repayment of all moneys secured by and due to the Bank under the loan granted to the Borrower. We further agree that we shall be jointly and severally liable to the bank for the entire outstanding in respect of the loan and that the Bank shall be at liberty to sue either or any of us in respect of such liability without joining the other or others of us and notwithstanding any decree in any such suit subsequently to sue the other or others of us and to proceed to judgement and execution at the option of the Bank until its claim is fully satisfied.

12.

13.*

Signed and delivered by the said: Shri/Smt(Guarantor). Shri/Smt..(Guarantor). Place: . Date: .. (* Delete whichever not applicable) 277

Annexure-Two-Wheeler-VII SBI TWO-WHEELER LOAN SCHEME Arrangement Letter To, _______________________ _______________________ _______________________ (Name & Address of the Borrower) Ref No: Dear Sir/Madam, Personal Segment Advances Loan for purchase of Term Loan of Rs With reference to your application dated ., we hereby sanction you a Term Loan of Rs. (Rupees..only) on the following terms and conditions: 2. Purpose: The loan is sanctioned to you . 3. Margin: 4. Rate of Interest FLOATING RATE OF INTEREST Interest on the loan amount will be charged at the rate of ____% margin above the Base Rate which is presently _____% p.a. and thus the present effective rate of interest being ____% p.a. calculated on daily balance of the loan amount at monthly rests, provided that the Bank shall at any time, and from time to time be entitled to vary the margin and the base rate at its discretion. Depending on variation of Base Rate and Margin, the effective rate of interest shall vary 278 % Date

for

the

purpose

of

purchase

of

periodically and you shall be liable to pay the effective rate of interest. You shall be deemed to have notice of changes in the rate of interest when the changes are notified at/displayed at the branch or published in a newspaper or in the website of the Bank or made through the entry in the passbook or the statement of account or by debit to the loan account, etc. and you are liable to pay such revised rate of interest. The Bank has option to reduce or increase the EMI or extend the repayment period consequent upon changes in interest rate. Without prejudice to the Banks other rights and remedies, the Bank shall be entitled to charge at its own discretion such enhanced rate of interest on the loan account(s) either on the entire outstandings or on a portion thereof as it may fix for any default or irregularity on the part of the borrower(s) which in the opinion of the Bank warrants charging of such enhanced rates of interest for such period as the Bank may deem fit.

5. Repayment : The loan is to be repaid in Equated Monthly Instalments of Rs each till the entire loan with the interest is fully repaid. The first instalment commences from the month following the month of purchase of above said article(s)/vehicle. Wherever repayment is through post-dated cheques, the cheques should be dated prior to the 7th of every month. 6. Security : The loan will be secured by: a) Hypothecation of the aforesaid two wheeler/ out of the loan amount in favour of the Bank. Noting of Banks hypothecation charge in the Books of the RTO and the Registration Book will be essential in respect of finance for two / four wheeler vehicles. You will also be required to furnish a copy of the Registration Book for Banks record after recording Banks hypothecation charge therein by the RTO. b) Third party guarantee of..* 7. Insurance: The vehicles shall be kept comprehensively insured by you in your name for the market value or at least 10% above the loan amount outstanding, whichever is higher. Banks hypothecation charge is to be noted on the insurance policy and a copy of the policy is to be delivered to the Bank. 8. Inspection (for vehicles): The Bank reserves its rights to inspect the vehicle and registration documents at regular intervals.

279

9. Legal expenses, etc. : All expenses like insurance premia, stamp duty, registration charges and other incidental expenses incurred in connection with the loan are to be borne by you 10. Processing charges: Processing charges of Rs(Rupees . only) are payable immediately. 11. Disbursement: The loan amount will be disbursed by means direct to the account of the supplier/dealer after execution of prescribed security documents. Please call on us on any working day to execute the documents. The loan is also subject to other terms and conditions as mentioned in the documents(s) executed/to be executed in connection with the loan and as may be prescribed by the Bank from time to time. The duplicate copy of this arrangement letter may please be returned to us duly signed by borrower(s) and guarantor(s) in token of acceptance of the terms and conditions detailed herein within a period of 45 days from the date of this letter. Yours faithfully,

Branch Manager (* Delete whichever not applicable) Received the original. Terms and conditions accepted Borrower(s) Date: Terms and conditions accepted Guarantor(s) Date: (All pages of this Arrangement Letter are required to be stamped and initialled by the Bank. All pages of the copy returned by the borrower are required to be signed by borrower and is to be retained with the document.)

280

Annexure-Two-Wheeler VIII The Branch Manager, State Bank of India, .. Branch, Dear Sir/Madam, SBI TWO-WHEELER LOAN SCHEME IRREVOCABLE LETTER OF AUTHORITY (Where Drawing and Disbursing Officer Is Himself the Applicant) I have availed the benefit of the aforesaid scheme. At present I am serving as .. (Designation) in . Department at .. I am authorised to draw and disburse my own salary along with the salaries of the employees working in this office/establishment/department. I undertake to deposit my salary supported by the pay bill every month for credit to the Savings Bank Account maintained at your branch till liquidation of the amount advanced to me. I further authorise you to deduct a sum of Rs per month beginning from the salary for the month of . from the aforesaid account for adjustment towards the balance outstanding in the loan account till liquidation. I hereby authorise State Bank of India .. Branch to collect and receive any amount payable to me including amount payable towards Provident Fund, Gratuity, Pension or similar dues on my behalf in the event of my retirement / resignation, termination or discontinuation of my service for any reason whatsoever. I further agree that the aforesaid authority shall be irrevocable till the entire amount of loan together with interest stands liquidated. I further undertake to execute necessary authorisation / documents as deemed just and necessary by the Bank in accordance with the scheme in the event of my ceasing to be drawing and disbursing authority by virtue of my transfer or otherwise. Place: Date: ...... SIGNATURE

281

Annexure-Two-Wheeler-A

SBI TWO-WHEELER LOAN SCHEME (Under Certificate of Posting)

State Bank of India Branch Shri/Smt./Kum . No. Dear Sir/Madam, YourLoan A/c No..with us Please refer to your above loan account with our Branch. 2. With a view to discourage irregularity/over dues in loan account either on account of non payment of EMI for whatever reason or outstanding in the overdraft account exceeding the drawing power, it has been decided to levy enhanced interest rate (hereinafter referred to as penal rate of interest) at the following rates. If the irregularity exceeds EMI or Installment amount, for a period of one month , then penal interest would be charged @2% p.a.(over and above the applicable interest rate) on the overdue amount for the period of default. If part installment or part EMI remains overdue, then penal interest should not be levied. 3. Accordingly, we request you to ensure that your loan account(s) with us do not become irregular, for any reason whatsoever. Dated:

Yours faithfully,

Branch 282

Manager

Anneuxre-Two-Wheeler-B

SBI TWO-WHEELER LOAN SCHEME (Under Certificate of Posting)

State Bank of India Branch Shri/Smt./Kum . No. Dated:

Dear Sir/Madam, YourLoan A/c No..with us Equated Monthly Instalment (EMI) for the month of..in respect of your captioned account, which was due on(date) has not yet been remitted, which resulted in irregularity in your account*

2. As you are aware, irregularity in the account attracts a penal interest @ 2% p.a. (over and above applicable rate of Interest) on the overdue amount for the period of default. With a view to avoid penal interest, please arrange to deposit an amount of Rs. (*Amount of EMI/ or irregularity) on or before..(date) failing which penal interest @ 2% p.a. on the overdue amount will be levied, over and above the applicable rate of interest, for the period the account remains irregular. Yours faithfully,

Branch Manager

* delete whichever is not applicable

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SBI TWO-WHEELER LOAN SCHEME FOR NEW CLERICAL STAFF (Circular. No. PBBU/AL/1/14 dated 20th July 2011) As present, members of clerical staff having 3 years of confirmed service are eligible for conveyance loan for purchase of two wheeler at a concessional rate of interest. 2. In a recently held bipartite meeting with All India Staff Federation, Federation has requested for relaxation in eligibility criteria for two wheeler loans to clerical staff. There are around 45,000 clerical staff members who have been recruited in last two recruitment exercises. They have not put in 3 years confirmed service but are eager to purchase two wheeler by availing loan. 3. In view of the above, we have launched a separate two wheeler scheme for these newly recruited employees. The details of proposed scheme are given in AnnexureA. The salient features are as under: The Scheme will be applicable to the confirmed clerical staff members who have not completed 3 years of confirmed service. The loan amount will be 6 times Net Monthly Income, subject to maximum of Rs.60000/-. Total deductions including proposed EMI should not exceed 60% of the Gross Income of the employee. The rate of interest will be 0.25% above Base Rate i.e. effective rate being 9.75% p.a. The repayment will be by way of salary deduction. All loans can be converted into staff Two Wheeler loan at the option of the employee when he becomes eligible for such facility. The outstandings at the time of conversion will be considered for the remaining period permitted under staff scheme i.e. if the employee becomes eligible for conversion after 2 years of sanction of the two wheeler loan, the outstandings at the time of conversion may be repaid in 5 years thereafter under Staff Two Wheeler Scheme.

4. In case the employee resigns from the service the loan may be converted into Two Wheeler Scheme for public. However, the continuance of loan or otherwise may be decided before the resignation is accepted.

284

5. The product code for the scheme is 6259 3111. PURPOSE Annexure-A To provide finance to clerical staff of our Bank for purchase of new Two-wheelers viz.Scooter /motor cycle/ moped/batteryoperated vehicles of reputed make Confirmed employees in Clerical Cadre who have not completed 3 years of service. Rs. 60000 /- (Maximum).

ELIGIBILITY

LOAN AMOUNT

TYPE OF LOAN

Term Loan

MARGIN REPAYMENT

10% OF ON ROAD PRICE OF VEHICLE In 36 Equal Monthly Instalments to be deducted from salary. Total deductions including proposed loan instalment should not exceed 60% of the Gross emoluments. 0.25% above Base Rate i.e. effective rate 9.75% p.a. presently compounded monthly.(upto 12th August 2011) w.e.f. 13.08.2011:0.25% above Base Rate i.e. effective rate 10.25% p.a. presently compounded monthly. NIL The loan will be secured by the hypothecation of vehicle and noting of hypothecation charge in the books of RTO and Registration Book. OF No service charge will be payable to dealer.

INTEREST

PROCESSING FEE SECURITY

PAYMENT SERVICE CHARGE TO DEALERS DOCUMENTS Application form Annexure Two Wheeler I (Public) Loan-cum-Hypothecation Agreement Annexure Two Wheeler V (Public) Arrangement Letter Annexure Two Wheeler-VII(Public) INSURANCE The vehicle purchased is to be kept comprehensively insured in the name of the borrower for the market value or at least 10% above the loan amount outstanding, whichever is higher 285

and the Banks interest as a hypothecate should be noted in the certificate of insurance and insurance policy. A copy of this is to be retained with the loan document. MODE OF Disbursement by way of NEFT facility or through CBS system DISBURSEMENT to the dealers. INSPECTION PAPERS TO BE SUBMITTED ALONGWITH LOAN APPLICATION SANCTIONING POWERS Inspection is waived for standard asset accounts after the initial inspection. Latest salary slips showing all deductions. Copy of the Identity Card. Proforma Invoice from the dealer. Branch Managers at the Branches and Head of the Department at Administrative Offices.

286

EMPANELMENT OF AUTO LOAN COUNSELORS It was felt to deploy sufficient number of Sales Team to explain our car loan schemes to the prospective customers and source applications at the dealerships. In this connection, the appropriate authority has approved empanelment of retired officers of the Bank on contract as Auto Loan Counselors (ALC). In case we fail to engage adequate number of retired employees or to get desired results from them, the appropriate authority has also approved empanelment of individuals with certain qualifications from SBI customers (other than staff) and others as Auto Loans Counselors (ALC) in line with empanelment of Home Loan Counselors. The details of the scheme are attached as Annexure-1. The ALC will play the role of a Direct Sales Executive of car dealers for booking Car Loans. They will be expected to bring a minimum of 20 sanctioned proposals per month. ALC will be paid an incentive of 0.2% of the car loan proposal sourced and sanctioned, with no fixed remuneration. The ALC will be reporting to the RBOs who will authorize RACPCs/ Branches to pay the incentives for the Car Loans along with disbursements. In Circles, where we have CM (Auto Loans), the performance of ALCs will be monitored by them. RBOs will maintain the empanelment register and issue ID cards and advise empanelment to RACPC, RCPCs/ MPSTs and Branches. Incentives paid register will be maintained by RACPCs at BPR centres and Branches at RCPC centres. Engagement of ALCs for booking Car Loan proposals should be rolled out immediately to take advantage of the festival season. A review of the performance will be undertaken based on the inputs provided by the Circles.

287

Annexure- 1. Details of the scheme: Auto Loan Counselors (ALC) Eligibility: A. (For SBI Retired officials) Should have retired from Banks service in the normal course as officer in any cadre. Officers/ employees who left the Banks service under SBIVRS or who were dismissed/removed from the Banks service as a disciplinary measures shall not be eligible. The engagement shall be upto the maximum age of 65 years, subject to other conditions regarding renewal of contract. His commitment, integrity and diligence should have been excellent during his service in the Bank. No Punishment / Penalty should have been inflicted on him during five years of his service in the Bank preceding to his retirement. Cases of CBI or other law enforcement agencies should not be pending against him. Should preferably be a local resident of the centre at which the RACPC is located. Knowledge of local language is essential. Retired employees of the clerical cadre may also be engaged on a selective basis upon approval of the Circle CGM. Retired officers who have already been appointed as Channel Management Advisers/ Marketing consultants (Home Loans) by the Bank will not be eligible. Should be having phone facility. Should operate from his place. Bank will not provide any office. Application form for empanelment of Auto Loan Counselor is given in Annexure- 2. Agreement to be obtained from Auto Loan Counselor is given in Annexure3.

B. With a view to improving our market presence in competition with the DSAs deployed by the Private Sector Banks and NBFCs, it has been decided to empanel at RBOs, individuals from SBI customers (other than staff) and others as Auto Loan Counselors (ALCs) for sourcing Car Loan proposals on the following terms:

288

Eligibility: Should be an approved agent for selling NSCs/Life Insurance Policies (other than those of SBI Life)/Mutual Funds/Govt. approved valuers/Chartered Accountants/ SBI customers (other than staff). Tax Consultants and Real Estate Brokers may also be considered depending upon the local standing and reputation. Age above 18 years. Should be local resident, at least matriculate and able to communicate effectively in local language and English. Should be having phone facility Should operate from his place. Bank will not provide any office. Job profile: Obtain leads on Auto Loan requirements of individuals from various sources, viz. Dealers, Corporates, and Institutions etc. Meet intending Car Loan borrowers at a place and time convenient to them and explain Car Loan product details. Fill in Car Loan applications and obtain all the requisite documents, and deliver these to the Branch for further processing. Follow up the application till sanction. Business target Minimum target is 20 sanctioned proposals; the ALC should bring in a month. If he fails to bring in a minimum sanctioned proposal of 20 per month for 6 months, his services will stand terminated. But he will be paid remuneration for the proposals already mobilized. A suitable log book for the purpose should be maintained at the RACPCs/ Branch.

Remuneration: 0.20% of the sanctioned loan amount payable on first disbursal of the loan. Terms of empanelment: Purely temporary. ALCs need to establish a very good rapport with Dealers of all the car manufacturers and convert the enquiries into business proposals. A notice to the effect that we are enlisting ALCs on the above terms may be put up at the Branch notice board and the staff members may be advised to spread the news through word of mouth publicity. Candidates, who turn up in response to such notice, may be interviewed by the AGM (RBO), and if found suitable, empanelled for sourcing Car Loan proposals.

289

A simple letter as per specimen enclosed as Annexure - 4 will be issued by the RBO to the eligible candidates who opt for the service. Auto Loan Counselors (ALCs) Code of Conduct and Responsibilities is enclosed as Annexure - 5 A photo ID card (in the format enclosed as Annexure - 6 with validity date mentioned on it, will be issued by the RBO to ALC. ALC will be required to display ID card prominently while dealing with a potential customer on behalf of the Bank. Format of Auto Loan Counselor Empanelment Register is attached as Annexure -7. Training: The AGM (RBO) should arrange for a short briefing to the identified candidates on Car Loans and sourcing of applications. Wherever Car Loan Sales Teams (MPSTs) are available their services could be utilized. Administrative control: ALCs will be under the control of the AGM (RBO) which has empanelled them. RBO will maintain Auto Loan Counselor Empanelment register in the format enclosed at Annexure-7. Entries made in the register should be authenticated by AGM (RBO). All proposals mobilized by the ALCs will be handled by the Branch under the RBO which has empanelled them and forwarded to RACPCs / RCPCs for processing. Remuneration to them will be paid by debit to the Branch Charges Account. A monthly report to be submitted to the controller detailing the business canvassed and remuneration paid to ALCs. At controlling office, the Sales Planner or any other official authorized for the purpose will be the Channel Manager and will upload performance data regarding the business booked for management review. This will be made available in LOS in due course. Targets for Branches: Each RBO must endeavour to empanel about 20 ALCs. Each branch linked to RACPCs/ RCPCs and Branches will have an annual budget stipulated by the respective RBO under the initiative.

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Annexure - 2 EMPANELMENT OF AUTO LOAN COUNSELORS (For Retired SBI officials) APPLICATION FORMAT
PASTE (not staple) A RECENT PASSPORT SIZE PHOTOGRAPH HERE AND SIGN ACROSS IT IN FULL WITH DATE

To, The Asst. General Manager, State Bank of India, Zonal Office, Sir, APPLICATION FOR EMPANELMENT OF OFFICERS/EMPLOYEES RETIRED FROM THE BANK, AS AUTO LOAN COUNSELORS (ALC) IN STATE BANK OF INDIA I submit herewith my application for the post of Auto Loan Counselor in State Bank of India. I have read the Role, Remuneration and Terms & Conditions relating to the post and advise that they are acceptable to me.

1. Full Name Shri/Smt/Kum (in Block Letters, as per degree certificate)

2. Fathers/Husbands Name

3. P.F Index No.

291

4.

Date

of

Retirement

(DD/MM/YYYY)

5. Name and Code no. Branch / Office from where retired: 6. Name and Code no. of Branch wherefrom receiving pension.

7. Candidates address where he/she normally resides/ will reside wherefrom he/she will perform his/ her duties after selection. ( IN BLOCK LETTERS)

Dist State Pin CODE Phone with STD Mobile No. 8. Date of Birth (DD/MM/YYYY):

Age* (as on

YEARS MONTHS *should note be more than 64 years as on the stipulated date.

10.Educational Qualification: 11. Last 3 Assignments held covering minimum 5 years:

292

ASSIGNMENT i) ii) iii)

FROM

TO

OFFICE/BRANCH

12. Languages Known (Mark in the appropriate box) Language a) ___________________________ b)____________________________ c) ___________________________ Read [ ] [ ] [ ] Write [ ] [ ] [ ] Speak [ ] [ ] [ ] Understand [ ] [ ] [ ]

13. Declaration I hereby declare that 1) I retired from the Banks service on attaining superannuation and not under Voluntary Retirement Scheme or Exit Option Scheme. No punishment / penalty was inflicted on me during five years of my service in the Bank preceding my retirement. No case of CBI or any other Law Enforcement Agency is pending against me and

2)

3)

4)

I am physically fit to carry out duties of the Auto Loan Counselor including continuous travel. I further declare that all statement made in this application are true, complete and correct to the best of my knowledge and belief. I understand that in the event of any information being found untrue or incorrect at any stage of my not satisfying 293

any of the eligibility criteria according to State Bank of India, my candidature is liable to be cancelled. Place : ___________________________ Date : _______________ Signature:_________________________ Name of candidate:__________________

Signature of Shri.... verified

(Signature & seal of the BM of the pension disbursing branch)

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Annexure -3 AGREEMENT FOR EMPANELMENT OF AUTO LOAN COUNSELORS THIS Agreement for empanelment of Auto Loan Counselors is entered between State Bank of India, Zonal Office _________________(place) as First Party and AND Shri/Smt/Kum. _________________________(retired official/ employee of SBI and aged around _____ years residing at ______________________________________ (place) and presently drawing pension from ________ Branch of SBI, as Second Party. WHEREAS State Bank of India expressed its desire to empanel retired officers/ employees of State Bank of India as Auto Loan Counselors on contract basis for periods renewable from time to time subject to fulfillment of eligibility criteria laid down in this regard for marketing Car Loan Applications. AND whereas Shri/Smt/Kum. ____________________ retired official/ employee evinced interest in offering his/her services as Auto Loan Counselor on contract basis and submitted application for empanelment as per the eligibility criteria. NOW this Agreement witnesseth as follows:i) The First Party hereby agrees to engage the services of Second Party the retired official/ employee as Auto Loan Counselor for sourcing Auto Loan Applications on contract basis without prejudice to his/her pension. ii) The period of engagement of Auto Loan Counselors on contract basis is for a period of six months. The contract of service may renewed for further period of six months each at a time on satisfactory completion of contract period of six months and depending on his/her suitability and also as per the requirement of the Bank in this regard. iii) The Agreement can be terminated by either party to the contract by giving one week Notice in writing duly acknowledged by the other. Bank resumes the right to terminate the contract before the stipulated period if the Auto Loan Counselor is found to be acting contrary to Banks instructions or detrimental to the interest of the bank. iv) The Auto Loan Counselors are entitled for payment of fees at the rate of 0.2% of the loan amount per sanctioned car loan which is booked, sanctioned and disbursed subject to tax deduction at source (TDS). v) The Auto Loan Counselors are not entitled for any salary/ allowance/ out of pocket expenses etc. vi) The Auto Loan Counselors are bound to reach minimum monthly target of 20 Car Loans per month, and if they fail to reach the minimum target in a

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vii) viii)

ix)

x)

xi)

xii)

particular month, the number booked in that month will be rolled over to the next month and added to next months performance with a minimum target of 40 loans for two months. If the target of 40 loans for two months is not achieved his/her contract may not be renewed further at the discretion of the AGM (Region). The Auto Loan Counselors are entitled for identity card issued by the Bank as a proof of identity to act as Auto Loan Counselors of the Bank for the period mentioned therein. After expiry of the validity period or in the event of termination of contract, the Auto Loan Counselor has to surrender the same to the Bank. In case of renewal of contract, a fresh identity card should be obtained containing the period of validity. The Auto Loan Counselor agree not to use Banks name or logo on their sign boards, name-plates, visiting cards, stationery, etc. The Auto Loan Counselor undertakes to adhere to the terms and conditions for empanelment and the code of conduct for performance of contract as laid down by the Bank. The Auto Loan Counselors agree to market Car Loan scheme for the Bank. He/She has to operate from his/her residence and is not entitled to claim reimbursement of cost incurred towards phone, furniture, computer, space, etc. Mere booking of the Car Loan will not entitle the Auto Loan Counselor for claiming the fee. The Auto Loan Counselor is entitled to claim fee with regard to those booked loans which are subsequently sanctioned and disbursed by the Bank. Initially the services of Auto Loan Counselors will be utilized for marketing of Car Loans. However, depending on Banks experience with their performance, the Auto Loan Counselors may be given the task of marketing for other products of the Bank also.

Both parties to this Agreement hereby convey their consent to abide by the terms and conditions of the Agreement and as a token of their free consent set their hand below on __________ (date) at ___________. State Bank of India, Zonal Office (___________ represented by _________) Name of the Auto Loan Counselor 296

(SIGNATURE) (SIGNATURE)

Annexure -4 (Draft of the letter to be addressed to the selected SBI Auto Loan Counselors) To, Mr / Ms / M/s Ref : Date: Dear Sir/Madam, SBI AUTO LOAN COUNSELOR EMPANELMENT With reference to your interaction with us on .., we are pleased empanel you as SBI Auto Loan Counselor (SBI ALC) on the terms and conditions laid down in this letter. 2. SBI Auto Loan Counselor is expected (i) To obtain and provide leads to the Bank from various sources viz. Dealers, Corporates & Institutions, Individuals etc., on Car Loan requirements of individuals, (ii) To meet prospective Car Loan customers at a place and time convenient to them and explain the latest SBI Car Loan products in detail to them, (iii) To help the customer in filling in the application and obtain all the requisite documents, and deliver these to the Branch, for further processing, (iv) To follow up the application till sanction or other logical conclusion. (v) To work within the framework of Code of Conduct and Responsibility enclosed at Annexure - 5 to this letter. 3. A service fee @ 0.2% of sanctioned loan amount per loan sourced by you and disbursed by the Bank will be payable to you by the Bank on first disbursal of the loan. Taxes, if any, applicable on the fees will have to be borne by you and the tax will be deducted at source from the payable fees as per rules applicable from time to time. Fees will be paid by crediting your bank account/account payee cheque. Fees will not be payable to you in cases where Bank is obliged to pay remuneration to other persons/ parties under any other arrangement, for the same loan proposal.

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You will not be eligible for any fee in the case of customers who have directly approached the Bank on their own. 4. Please note that the Bank will not provide any office or office space to you for this purpose. You will have to arrange for your work place at your own cost and maintenance expenses. 5. Your empanelment with Bank is as a service provider only and it does not create any employer-employee relationship. You, your successors or assigns, will have no right to claim any employment or benefit of employment whatsoever from the Bank. 6. Please note that your empanelment will be for a period of 6 months, which may be terminated by either party by giving one weeks notice. It can also be terminated by the Bank at any time if your performance is found contrary to the Banks instructions or if you are found to perform any action detrimental to Banks interest. In the event of premature termination /expiry of your empanelment you will have to immediately surrender the identity card issued by the Bank to this office. Extension of your engagement with the Bank will depend on your performance in the activity / services allotted to you and necessity of your services to the Bank. 7. While no minimum business target has been stipulated per month, you are expected to bring in about 20 sanctioned proposals per month. If you do not bring the minimum business continuously for 6 months, your empanelment shall stand terminated automatically. 8. AGM (RBO) shall be the final deciding authority for resolution of any dispute/clarification regarding payment of fee, terms of empanelment etc., and the decision taken by him shall be final and binding on you. 9. In token of your having accepted the offer on the terms and conditions stipulated, please return the duplicate copy of this letter duly acknowledged within fifteen working days from the date of this letter.

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Yours faithfully,

AGM (RBO) Encl: a/a. 1. I have read and understood the contents of this letter and the Annexure mentioned therein. 2. I accept the terms and conditions laid down for my empanelment as SBI Auto Loan Counselor. 3. I enclose my resume containing my residential address, contact number, and bank account details for your information and record.

Signature of the applicant. Name in full : Date : Place :

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Annexure -5 SBI Auto Loan Counselors (ALCs) - Code of Conduct and Responsibilities : (i) ALC shall prominently display the Identity Card issued to him by the Bank while dealing with the prospective customer (prospect) on behalf of the Bank. (ii) ALCs should handle with care their responsibilities particularly aspects like soliciting customers, hours of calling, privacy of customer information and conveying correct information about products on offer, etc. (iii) ALCs will not handle, on behalf of the Bank, any transaction for which they are not authorized as per the agreement. (iv) ALCs should not resort to intimidation or harassment of any kind, either verbal or physical, against any person while dealing on behalf of the Bank. ALC will refrain from action that could damage the integrity and reputation of the Bank. DOs Every HLC shall (a) Adhere to extant instructions as specified in Banks fair practice code for lending. (b) Disseminate requisite information in respect of products offered by the Bank through him and take into account, the needs of the prospect while recommending the specific product. (c) Render necessary assistance to the prospect in complying with requirements for transacting business with the Bank. (d) Not enter the prospects residence / office against his / her wishes. (e) Respect the prospects privacy. (f) If the prospect is not present and only family members / office persons are present at the time of the visit, end the visit with a request for the prospect to call back. (g) Provide his / her telephone number or the concerned Bank offices contact details, if asked for by the customer.

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(h) Limit discussions with the prospect to the business on hand Maintain a professional distance. (i) Any communication sent to the prospect should be only in the mode and format approved by the Bank. (j) Normally discuss the prospects interest only with the prospect or any other individual / familys accountant / Secretary / spouse authorized by the prospect. (k) Be properly dressed.

Donts ALC shall not (a) Solicit or procure any business without holding valid authority for this purpose. (b) Induce the prospect to omit any material information. (c) Induce the prospect to submit any wrong information or documents. (d) Behave in a discourteous manner with the prospect. (e) Offer different rates, advantages, terms and conditions other than those offered by the Bank. (f) Mislead the prospect on any service / product offered. (g) Mislead the prospect about their business or organizations name, or falsely represent themselves. (h) Make any false / unauthorized commitment on behalf of the Bank for any facility / service. (i) Accept gifts or bribes of any kind from the prospects. If offered a bribe or payment of any kind, he/she must report the offer to his/her management.

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(j ) Share any customer information, in any form whatsoever, with any other person / entity. (k) Violate this code. (l) Use professional status as SBI ALC for furthering personal relations with the customers. (m) Divulge unauthorized information, written or spoken, to any customer or any other person. (n) Use obscene, profane or abusive language and / or hold out any threats. (o) Use violent or any criminal means which may harm the reputation or property of the borrower, guarantor or any other person. (p) Act in any manner which will affect the reputation of the Bank.

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Annexure -6 Format of Identity Card for SBI Auto Loan Counselor Identity Card must be laminated Front Side Back Side

NON-EMPLOYEE

ALC No. - (Year / Running No. as per IDENTITY ALC Register)

CARD SBI AUTO LOAN COUNSELOR (EMPANELLED WITH SBI Telephone No. of the Card Holder _______BRANCH) Valid Till (date in bold letters) Issued by State Bank of India, _____ NAME (Full name in BOLD RBO CAPITAL Letters ) Latest stamp size photograph Signature of Card Holder (Warning This card has been issued only Date of Issue for the purpose of identification while providing Auto Loan Counseling Services on behalf of State Bank of India during the validity period mentioned above. Card holder is NOT AN EMPLOYEE of State Bank of India. He /She has been empanelled with SBI for providing Auto Loans Counseling services to customers. Use of this card for identification at other places is prohibited by State Bank of India.) Signature of AGM(RBO) 303 Full Address of the RBO

Telephone No. of the RBO

Annexure -7 Format of Auto Loan Counselor (ALC) Empanelment Register Dat e Financ ALC ial No. Year of empan elment Na me of ALC A dd res s of A LC ALC Con tact No. Dat e upt o whi ch em pan elm ent is vali d Business Sourced during empanelm ent Com missi on Paid to ALC duri ng empa nelm ent Date of renewal/terminati on of empanelment.(In case of renewal please make a fresh entry in the register. Original Financial Year of Empanelment and ALC No.to be retained at the time of renewal of live empanelment.) Rene Terminatio wal n Da Whet te her ICard surre ndere d?

N o. of ca ses

Amo unt, (Rs.L ac)

(Circular. No. PB/AL/1/10 dated August 21, 2010)

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The feedback received from the Circles in implementation of the scheme suggested some changes in the following documents: Annexure-2 : Application Form : Provision for applicants other than SBI retired employees Annexure-3 : Agreement for Empanelment of ALCs : Provision for applicants other than SBI retired employees Annexure-4: Draft Letter to be addressed to the selected ALCs: Clarification regarding Para-3 of the letter regarding payment of remuneration.

2. Accordingly, all these documents have been changed/modified and enclosed as Annexure-2A, Annexure- 3A and Annexure-4A respectively. 3. We further advise that as long as the ALC is directly engaged by the Bank and has no connection with the dealer showroom, the proposals brought by ALCs will tantamount to proposals sent by SBI direct to dealers wherein no commission to Dealer or his Sales Executives is payable. However, where the ALC is a part of dealer showroom and diverts proposals that could have gone to other Banks to us, all the three incentives viz. Dealers, Dealer Sales Executives and Auto Loan Counselors will be payable.

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Annexure 2A EMPANELMENT OF AUTO LOAN COUNSELORS APPLICATION FORMAT

PASTE (not staple) A RECENT PASSPORT SIZE PHOTOGRAPH HERE AND SIGN ACROSS IT IN FULL WITH DATE

To, The Asst. General Manager, State Bank of India, Zonal Office, Sir, APPLICATION FOR EMPANELMENT AS AUTO LOAN COUNSELORS (ALC) IN STATE BANK OF INDIA I submit herewith my application for the post of Auto Loan Counselor in State Bank of India. I have read the Role, Remuneration and Terms & Conditions relating to the post and advise that they are acceptable to me. 1. Full Name Shri/Smt/Kum (in Block Letters, as per degree certificate)

2. Fathers/Husbands Name

3. P.F Index No. *

4. Date of Retirement (DD/MM/YYYY) * 5. Name and Code no. Branch / Office from where retired*: 6. Name and Code no. of Branch wherefrom receiving pension*:

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7. Candidates address where he/she normally resides/ will reside wherefrom he/she will perform his/ her duties after selection. ( IN BLOCK LETTERS)

Dist State Pin CODE Phone with STD Mobile No. 8. Date of Birth (DD/MM/YYYY):

Age # (as on

YEARS MONTHS # should not be more than 64 years as on the stipulated date. 10. Educational Qualification: 11. Last 3 Assignments held covering minimum 5 years*: ASSIGNMENT i) ii) iii) 12. Languages Known (Mark in the appropriate box) Language a) ___________________________ b)____________________________ Read [ ] [ ] Write [ ] [ ] Speak [ ] [ ] Understand [ ] [ ] FROM TO OFFICE/BRANCH

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c) ___________________________ 13. Declaration I hereby declare that 5)

[ ]

[ ]

[ ]

[ ]

I retired from the Banks service on attaining superannuation and not under Voluntary Retirement Scheme or Exit Option Scheme.* No punishment / penalty was inflicted on me during five years of my service in the Bank preceding my retirement.* No case of CBI or any other Law Enforcement Agency is pending against me and I am physically fit to carry out duties of the Auto Loan Counselor including continuous travel.

6)

7)

8)

I further declare that all statement made in this application are true, complete and correct to the best of my knowledge and belief. I understand that in the event of any information being found untrue or incorrect at any stage of my not satisfying any of the eligibility criteria according to State Bank of India, my candidature is liable to be cancelled. Place : ___________________________ Date : _______________ Signature:_________________________ Name of candidate:__________________

Signature of Shri.... verified (Signature & seal of the BM of the pension disbursing branch) [Only in case of retired employees of SBI] * Not applicable in case of applicants other than retired employees of SBI

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Annexure-3A AGREEMENT FOR EMPANELMENT OF AUTO LOAN COUNSELORS THIS Agreement for empanelment of Auto Loan Counselor is entered between State Bank of India, Zonal Office _________________(place) as First Party and AND Shri/Smt/Kum. _________________________(retired official/ employee of SBI) OR Shri/Smt/Kum. _________________________(Other than retired official/ employee of SBI) and aged around _____ years residing at ______________________________________ (Place) and, as Second Party. WHEREAS State Bank of India expressed its desire to empanel retired officers/ employees of State Bank of India/others as Auto Loan Counselors on contract basis for periods renewable from time to time subject to fulfillment of eligibility criteria laid down in this regard for marketing Car Loan Applications. AND whereas Shri/Smt/Kum. ____________________ evinced interest in offering his/her services as Auto Loan Counselor on contract basis and submitted application for empanelment as per the eligibility criteria. NOW this Agreement witnesseth as follows:i) The First Party hereby agrees to engage the services of Second Party as Auto Loan Counselor for sourcing Auto Loan Applications on contract basis without prejudice to his/her pension. ii) The period of engagement of Auto Loan Counselor on contract basis is for a period of six months. The contract of service may renewed for further period of six months each at a time on satisfactory completion of contract period of six months and depending on his/her suitability and also as per the requirement of the Bank in this regard. iii) The Agreement can be terminated by either party to the contract by giving one months Notice in writing duly acknowledged by the other. Bank reserves the right to terminate the contract before the stipulated period if the Auto Loan Counselor is found to be acting contrary to Banks instructions or detrimental to the interest of the bank. iv) The Auto Loan Counselor is entitled for payment of fees at the rate of 0.2% of the loan amount per sanctioned car loan which is booked, sanctioned and disbursed subject to tax deduction at source (TDS). v) The Auto Loan Counselor is not entitled for any salary/ allowance/ out of pocket expenses etc. 309

vi)

vii) viii)

ix) x)

xi)

xii)

The Auto Loan Counselor is bound to reach minimum monthly target of 20 Car Loans per month, and if they fail to reach the minimum target in a particular month, the number booked in that month will be rolled over to the next month and added to next months performance with a minimum target of 40 loans for two months. If the target of 40 loans for two months is not achieved his/her contract may not be renewed further at the discretion of the AGM (Region). The Auto Loan Counselor is entitled for identity card issued by the Bank as a proof of identity to act as Auto Loan Counselor of the Bank for the period mentioned therein. After expiry of the validity period, the Auto Loan Counselor has to surrender the same to the Bank. In case of renewal of contract, a fresh identity card should be obtained containing the period of validity. The Auto Loan Counselor agrees not to use Banks name or logo on their sign boards, name-plates, visiting cards, stationery, etc. The Auto Loan Counselor agrees to market Car Loan scheme for the Bank. He/She has to operate from his/her residence and is not entitled to claim reimbursement of cost incurred towards phone, furniture, computer, space, etc. Mere booking of the Car Loan will not entitle the Auto Loan Counselor for claiming the fee. The Auto Loan Counselor is entitled to claim fee with regard to those booked loans which are subsequently sanctioned and disbursed by the Bank. Initially the services of will be utilized for marketing of Car Loans. However, depending on Banks experience with their performance, the Auto Loan Counselor may be given the task of marketing for other products of the Bank also.

Both parties to this Agreement hereby convey their consent to abide by the terms and conditions of the Agreement and as a token of their free consent set their hand below on __________ (date) at ___________. State Bank of India, Zonal Office (___________ represented by _________) Name of the Auto Loan Counselor

(SIGNATURE) (SIGNATURE)

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Annexure-4A (Draft of the letter to be addressed to the selected SBI Auto Loan Counselors) To, Mr / Ms / M/s Ref : Date: Dear Sir/Madam, SBI AUTO LOAN COUNSELOR EMPANELMENT With reference to your interaction with us on .., we are pleased empanel you as SBI Auto Loan Counselor (SBI ALC) on the terms and conditions laid down in this letter. 2. SBI Auto Loan Counselor is expected (i) To obtain and provide leads to the Bank from various sources viz. Dealers, Corporates & Institutions, Individuals etc., on Car Loan requirements of individuals, (ii) To meet prospective Car Loan customers at a place and time convenient to them and explain the latest SBI Car Loan products in detail to them, (iii) To help the customer in filling in the application and obtain all the requisite documents, and deliver these to the Branch, for further processing, (iv) To follow up the application till sanction or other logical conclusion. (v) To work within the framework of Code of Conduct and Responsibility enclosed at Annexure - 5 to this letter. 3. A service fee @ 0.2% of sanctioned loan amount per loan sourced by you and disbursed by the Bank will be payable to you by the Bank on first disbursal of the loan. Taxes, if any, applicable on the fees will have to be borne by you and the tax will be deducted at source from the payable fees as per rules applicable from time to time. Fees will be paid by crediting your bank account/account payee cheque. Fees will not be payable to you in cases where Bank is obliged to pay remuneration to other persons/ parties under any other arrangement, for the same loan proposal. This, however, shall not include payment of incentives to dealers and dealers sales executives. You will not be eligible for any fee in the case of customers who have directly approached the Bank on their own. 4. Please note that the Bank will not provide any office or office space to you for this purpose. You will have to arrange for your work place at your own cost and maintenance expenses. 5. Your empanelment with Bank is as a service provider only and it does not create any employer-employee relationship. You, your successors or assigns, will have no right to claim any employment or benefit of employment whatsoever from the Bank.

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6. Please note that your empanelment will be for a period of 6 months, which may be terminated by either party by giving one weeks notice. It can also be terminated by the Bank at any time if your performance is found contrary to the Banks instructions or if you are found to perform any action detrimental to Banks interest. In the event of premature termination /expiry of your empanelment you will have to immediately surrender the identity card issued by the Bank to this office. Extension of your engagement with the Bank will depend on your performance in the activity / services allotted to you and necessity of your services to the Bank. 7. While no minimum business target has been stipulated per month, you are expected to bring in about 20 sanctioned proposals per month. If you do not bring the minimum business continuously for 6 months, your empanelment shall stand terminated automatically. 8. AGM (RBO) shall be the final deciding authority for resolution of any dispute/clarification regarding payment of fee, terms of empanelment etc., and the decision taken by him shall be final and binding on you. 9. In token of your having accepted the offer on the terms and conditions stipulated, please return the duplicate copy of this letter duly acknowledged within fifteen working days from the date of this letter. Yours faithfully, AGM (RBO) Encl: a/a. 4. I have read and understood the contents of this letter and the Annexure mentioned therein. 5. I accept the terms and conditions laid down for my empanelment as SBI Auto Loan Counselor. 6. I enclose my resume containing my residential address, contact number, and bank account details for your information and record.

Signature of the applicant. Name in full : Date : Place :

(Circular. No. PB/AL/1/1 dated 5th April, 2011) 312

FREE ACCIDENT INSURANCE: ACCIDENTAL DEATH COVER The Bank is providing Accidental Death Cover to all our home loan and auto loan borrowers free of cost. The insurance cover is available in case of accidental death up to Rs.40 lac or outstanding or drawing power as on the date of accident whichever is the lowest subject to fulfillment of some term and conditions. The Insurance cover does not cover partial or total disablement. This cover is available for accidental death only. All existing and new borrowers are being covered under the policy w.e.f. 1st July 2003. 2. Branches have to issue Insurance Certificate (as per format enclosed) to the Home/Auto loan borrower at the time of sanction/disbursement of loan. This format is attached to this Circular and the instructions have already been advised through the Master Circular no. NBG/PBU/HL-HOME LOAN/32/2011-12 dated 20/08/2011 on page no.155. 3. Although these instructions have been in place since 2003, it is observed that Branches/RACPCs are not implementing the process properly and in time. There have been instances where legal heirs of deceased borrowers are not aware of the existence of the cover and therefore did not file the claim in time due to which claims have been repudiated. In such instances, the concerned branches/RACPC must inform the heirs about the claim procedure and help them in filing the claims within stipulated time. We, therefore, reiterate the revised procedure for lodging a claim under Personal Accident Insurance Master Policy for the benefit of operating units.

Procedure to lodge a claim: 4(a) On occurrence of a contingency, the branch should intimate the Divisional Office 120700, New India Assurance Co. Ltd., 8th Floor, 17/a Cooperage Road, Mumbai 400039 immediately, about the possibility of a claim. All other documents are required to be submitted within 60 days for further processing the claim. The claim amount admissible is for the outstanding on the date of accident/death or outstanding amount less any default in repayment of installments as per prescribed schedule. Further interest application should be stopped immediately in the event of death of the borrower.

4(b). The following documents are required to be submitted for processing of claim: i). Claim form as per format given above circular Annexure- I ii). Death certificate from the competent Authority iii). Post Mortem Report

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iv) Other supporting papers such as Police Report (FIR)/ Panchnama / Inquest Report. v) News paper cutting, if any vi) Certificate, (vide Annexure II) from the branch to the effect that the person was having a Home Loan Account. vii) Certificate of Insurance duly signed by all alive co-applicants. viii) Statement of loan account from the date of disbursement of loan, showing the loan amount sanctioned, monthly transactions and outstanding as on the date of accident and amount of installments defaulted, if any. 5. Such quick action will not only help the legal heirs but also prevent such loans from slipping into NPA category. It will reduce the loan liability of the legal heirs as well as avoid the need to file court cases. 6. Please issue suitable instructions to branches/RACPCs under you control that the claim is to be submitted in all eligible cases within 60 days as per the procedure described above. In case of any delay in settlement of the claim by the Insurance Company, this office should be advised immediately with details of the case at the following address: Assistant General Manager (Home Loans) RE, H& HD Dept. Corporate Center,SBI Bhawan, Madame Cama Road,Nariman Point, Mumbai Telephone no.022-22740162 e-mail id: dgm.homeloans@sbi.co.in.

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Annexure-I

THE NEW INDIA ASSURANCE COMPANY LTD. New India Centre, Divisional Office 120700, 8th Floor, 17/A, Cooperage Road, Mumbai-400 039 TEL- (022) 2204 96 48, 2281 46 63 FAX- 2288 13 50 CLAIM FORM The Issue of this form is not to be taken as an admission of liability. TO BE COMPLETED BY THE LEGAL HEIR / NEXT KIN 1. (a) Name of the Bank Branch (in full) _______________________________________________ (b)Name of the Insured person (loanee) _________________________________________________ (c ) Address in full

ii. Profession or occupation ___________________ iii. Age, Last Birthday ___________________ 2. (a) Date of the accident (b) Time of the accident (c) Where it happened? (d) Name and address of the witness

3. How did the accident occur? __________________________________________________________________ 4. (a) Is the Insured person covered under any other Personal Accident Insurance Policy (b) If so state name and address of the Company or Companies and amount of insurance. The foregoing details are true to the best of my / our knowledge and belief.

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SIGNATURE WITNESS: CERTIFICATE TO BE FILLED UP AND SIGNED BY AN EYE WITNESS TO THE ACCIDENT (Wherever applicable) I hereby certify that I was present when the Accident occurred to Mr. __________________________ _________________ on the _____day of _______________20__ in the manner stated by him overleaf, that it was caused by _________________________ which * was / was not his willful act and that he * was / was not under the influence of intoxicating liquor at the time. Name :________________________ Signature : _________________________ Address : ________________________ Occupation : _____________________ Date :___________________________ * Strike Out, which is not applicable AUTHORISED SIGNATORY STATE BANK OF INDIA NAME OF THE SIGNATORY: BRANCH: PLACE DATE Complete Postal address of the Bank Branch to which : correspondence can be exchanged by the Insurance Company 316

Annexure-II CERTIFICATE OF THE BANK This is to certify that Mr. / Mrs.__________________ who has expired due to accident on _______________( as per the documents enclosed ), is a holder of Home / Car Loan Account No.____________ . The Home Loan / Car Loan Account was held by the aforesaid person In his Single Name : ___________ ( please mention Yes or NO ) Joint names : ____________ ( please mention Yes or NO ) If in joint names, Names of the Joint holders: _______________________________________ _______________________________________ _______________________________________ The original Loan amount of Rs.__________ was disbursed on ___________ . The total outstanding as on date of accident/death.. Irregularity if any.. ELEGIBLE CLAIM AMOUNT.

AUTHORISED SIGNATORY NAME: STATE BANK OF INDIA BRANCH: PLACE DATE 317

FRIQUENTLY ASKED QUESTION (FQA) PERSONAL ACCIDENT INSURANCE COVER (FOR HOME LOAN AND AUTO LOAN BORROWERS) S.No. Question 1 What is the period of Insurance cover? Answer The Insurance Cover is valid for a period for one year subject to renewal thereof. The renewal is done for the Bank as a whole by Corporate Center. What is the scope of the cover? The insurance cover the death of the borrower due to an accident anywhere in the world, during the period of insurance What is the sum assured under Total outstanding (including Interest) as the policy for each borrower? on date of accident or Rs. 40 lacs whichever is less subject to deduction of default installments. If any sharing of sum assured in If co-applicants are two the sum assured case of co-borrower/borrowers at is 50:50 if there are more than two, the the time of settlement of claim sum assured will be in that proportion. Who will be the nominee under The Bank shall be the nominee to this policy receive the claim under this policy Who will deal the claims The claim correspondence will be with correspondence. the insured Bank branches where the insured person having his/her loan account. Is the borrower to be provided Yes, pre signed certificate is attached to with Certificate of Insurance? this Circulars to be issued to the borrower along with loan sanction letter after counter signing by an officer of the branch/RACPC. What is the address for lodging THE NEW INDIA INSURANCE claims and correspondence with COMPANY LTD. the Insurance Company? Divisional Office 120700 8th Floor,17/A,Cooperage Road, Mumbai 400039 TEL(022)22049648,22814663 Fax(022)22881350

5 6

(Cir. No. PBBU/HL/41Dated 11th October 2011)

318

EXTENSION IN REPAYMENT PERIOD ON INCREASE IN FLOATING RATE OF INTEREST

The Base Rate and the SBAR of the Bank have been revised several times and consequently moved upward from 7.50% to 10.00% and from 11.75% to 14.75% respectively, since 1st July 2010. Due to this the applicable interest rates on existing Auto Loans have also undergone a change several times over the period. In such scenario there is a possibility that the loan would not get liquidated at the end of stipulated tenor if the EMI remains unchanged. 2. In case of upward movement of interest rate, Bank has undernoted options to ensure liquidation of the Loan account: (i) Increasing the EMIs in the account with the change in interest rate (ii) Extending the repayment tenure while keeping the EMIs unchanged (iii) Receipt of lump-sum payment in the account while keeping the EMIs unchanged. 3. The first option to increase the EMIs in case of rise in interest rates presents a procedural challenge as the Bank officials have to contact the borrowers again and again for obtaining fresh ECS/S.I. mandate or revised PDCs. In some of the cases it may also be possible that increased EMIs may not be within the servicing capacity of the borrowers. In view of these logistical challenges, IT Department, Belapur is developing a suitable technical solution to enable the undernoted functionality in CBS: (i) In the event of an increase in the rate of interest, the tenor of the loan will be revised automatically while keeping the EMIs unchanged. (ii) Automatic generation of letter to customer advising the changed interest rate and the new tenor on the assumption that EMIs remain unchanged. (iii) In case the new tenor is more than the maximum tenor permitted by the Bank, the customer may be given the choice of making a lump-sum payment or re-setting the EMIs at a higher level. 4. As per the current Banks Loan Policy maximum loan tenor for Term loan is 8 years. However, for auto loan this was restricted to 7 years. This has now been increased to 8 years for the purpose of extending the repayment period, if interest rates on the existing loans go up and the EMIs are left unchanged. 5. In view of the above it has been decided that till the time IT Department, Belapur comes with the appropriate functionality in CBS, CPCs/Branches will extend the 319

loan tenure manually by a maximum of 5 years in case of increase in interest rate. Such increased tenure should not exceed 8 years subject to the stipulation that loan should be liquidated before the borrower attains the age of 70 years. Once IT is able to implement the appropriate functionality in CBS the whole process would be handled with the support of system and no manual intervention would be required at the level of CPCs/Branches. 6. While extending the repayment period manually the following guidelines need to be observed: a) The repayment period will be extended in such a way that the original stipulated EMI will be protected for the borrower by extending the repayment period. b) Only the borrowers with standard accounts and under floating interest rate category will be covered. c) PDCs/SIs/ECS mandate for the revised period need to be obtained. d) It may please be ensured that the loan must be fully repaid before the borrower attains the age of 70 years. e) In cases where the customer is opting for making a lump-sum payment or re-setting the EMIs at higher level, the Branches/CPC should not increase the loan tenor. 7. Even though the option of extending the tenure is covered by the existing documentation, as a measure of additional precaution, the letters as per Annexure A need to be sent to all the eligible car loan borrowers to make them aware of proposed extension of repayment period and/or to enable them to exercise other options within stipulated period.

320

Annexure A To Name and addressees of the borrowers Sir/Madam, Car Loan Account No We refer to your Car Loan account no. _________________ having outstanding of Rs.___________(Rupees_____________________________ only) as on <current date> and advise that the applicable rate of interest on your above mentioned Car Loan account increased from_____ % to_______% owing to the upward revision in Base Rate/SBAR from______ % to ______ %. 2. In view of the above, the Bank is willing to increase the tenure of the loan by ____months taking the total tenure of the loan to ______months while keeping your equated monthly installments (EMIs) of Rs._____ (Rupees ________ only) unchanged. 3. In case you do not wish to increase the tenure of your Car Loan, you may contact the < Name of the Branch/CPC> within 15 days from the date of this letter to exercise the undernoted options: (i) Increase the EMIs suitably while keeping the loan tenure unchanged. In that case you would be required to submit fresh Post Dated Cheques/Standing Instructions/ECS mandate. (ii) Making a lump-sum payment of suitable amount in the loan account while keeping the loan tenure unchanged. (iii) A combination of option mentioned at para 3 (i) and 3 (ii). 4. We request you to visit the <name of the Branch/CPC> on any working day to exercise any of the above noted options within 15 days from the date of this letter otherwise the tenure of the loan would be increased by______ months while keeping the EMIs unchanged. Yours faithfully, Authorized signatory Copy to <name and address of the guarantors> for information. Authorized signatory )

(Circular No. PB/AL/1/26 dated 21st September 2011)

321

MOUs WITH DIFFERENT MANUFACTURERS MOU with Maruti Udyog Ltd. We have entered into an MOU with Maruti Udyog Ltd on 12th February 2003. SBI becomes the preferred financier for Maruti vehicles through this MOU. We will work in close coordination with Maruti dealerships for generating more car loans and involve in regular joint promotional activities to explore the opportunity available in the market. Circles may participate in various promotional schemes on a joint 50:50 sharing basis subject to the budget availability. As per this MOU, Maruti will provide MPST/ Branch of SBI access to its dealership for procuring car leads. The branches which are authorized to do car loan proposals may identify one officer as a resource person between the dealer and the branch. MOU with Mahindra & Mahindra Ltd To improve our presence in the market, our bank has entered into a MOU with Mahindra & Mahindra Ltd (M&M) and the average ticket size of M&M cars are Rs.7 lacs. SBI becomes the preferred financier for M&M vehicles through this MOU. We will work in close coordination with M&M dealerships for generating more car loans and involve in regular joint promotional activities to explore the opportunity available in the market. Circles may participate in various promotional schemes on a joint 50:50 sharing basis subject to the budget availability. As per this MOU, M&M will provide MPST/ Branch of SBI access to its dealership for procuring car leads. The branches which are authorized to do car loan proposals may identify one officer as a resource person between the dealer and the branch. (Circular No. PB/AL/ 1 / 31 dated 25th February 2010) MOU with Honda Siel Cars India Ltd To improve our presence in the market, our bank has entered into a MOU with Honda Siel Cars India Ltd (HSCIL) who have wide range of cars like Jazz, City, Civic, Accord etc. with a price ranging between Rs.7 lacs to Rs.17.50 lacs and the average ticket size being more than Rs.6 lacs. SBI becomes the preferred financier for HSCIL vehicles through this MOU. We will work in close coordination with HSCIL dealerships for generating more car loans and involve in regular joint promotional activities to explore the opportunity available in the market. Circles

322

may participate in various promotional schemes on a joint 50:50 sharing basis subject to the budget availability. As per this MOU, HSCIL will provide MPST/ Branch of SBI access to its dealership for procuring car leads. The authorized branches may identify one officer as a resource person between the dealership and the branch, who can visit the dealership regularly to get the loan proposals. (Circular No. PB/AL/ 1 / 32 dated 20th February 2010) MOU with Toyota Kirloskar Motors Pvt Ltd To improve our presence in the market, our bank has entered into a MOU with Toyota Kirloskar Motors Pvt Ltd (TKMPL) who have wide range of cars like Innova, Camry, Corolla Altis, Land Cruiser etc. with a price ranging between Rs.8 lacs to Rs.82 lacs and the average ticket size being more than Rs.10 lacs. SBI becomes the preferred financier for TKMPL vehicles through this MOU. We will work in close coordination with TKMPL dealerships for generating more car loans and involve in regular joint promotional activities to explore the opportunity available in the market. Circles may participate in various promotional schemes on a joint 50:50 sharing basis subject to the budget availability. As per this MOU, TKMPL will provide MPST/ Branch of SBI access to its dealership for procuring car leads. The authorized branches may identify one officer as a resource person between the dealership and the branch, who can visit the dealership regularly to get the loan proposals. (Circular No. PB/AL/ 1 / 31 dated 25th February 2010) MOU with Chevrolet sales India Pvt. Ltd To improve our presence in the market, our bank has entered into a MOU with Chevrolet sales India Pvt. Ltd (CSIPL) who have wide range of cars like Aveo UVA, Octra, SRV, Spark, Tavera, Captiva, Cruze, Beat etc. with a price ranging between Rs.5 lacs to Rs.18 lacs and the average ticket size being more than Rs.6 lacs. SBI becomes the preferred financier for CSIPL vehicles through this MOU. We will work in close coordination with CSIPL dealerships for generating more car loans and involve in regular joint promotional activities to explore the opportunity available in the market. Circles may participate in various promotional schemes on a joint 50:50 sharing basis subject to the budget availability.

323

3. As per this MOU, CSIPL will provide MPST/ Branch of SBI access to its dealership for procuring car leads. The authorized branches may identify one officer as a resource person between the dealership and the branch, who can visit the dealership regularly to get the loan proposals. (Circular No. PB/AL/ 1 / 33 dated 2nd March 2010) MOU with Ford India Pvt Ltd To improve our presence in the market, our bank has entered into a MOU with Ford India Pvt.Ltd (FIPL). 2. SBI becomes the first and the only preferred financier for FIPL Cars through this MOU. We will work in close coordination with FIPL dealerships for generating more car loans and involve in regular joint promotional activities to explore the opportunity available in the market. Ford will promote our Car Loan Schemes to its customers and desires SBI to provide training to their Dealers Sales Executives. 3. Please arrange to initiate interactions with the local FIPL team and arrange for mapping of branches with the dealerships. The CM (Auto Loans), Sales Team may be suitably advised to visit the dealerships regularly and procure car loan applications. Required number of Auto Loan Counselors may also be empanelled and placed at the dealerships. ( Circular No. PB/AL/ 4J /11 dated September 13, 2010)

MOU with Nissan Motors India Pvt Ltd (NMIPL) We have entered into an MOU with Nissan Motors India Pvt Ltd (NMIPL) and Hover Automotive India Pvt. Ltd.(HAIPL) on 17th November 2011. HAIPL is the outsourced agency of Nissan which will deal with Dealer Development and pan India operations. HAIPL will interact with the Bank functionaries for promotion of vehicles of Nissan brand. 2. SBI becomes the preferred financier for NMIPL cars through this MOU. We will work in close coordination with NMIPL dealerships through HAIPL for generating more car loans and involve in regular joint promotional activities to explore the opportunities available in the market. NMIPL/HAIPL will promote our Car Loan Schemes to their customers. 3. Please arrange to initiate interactions with the local NMIPL/ HAIPL team and arrange for mapping of branches with the dealerships. The CM (Auto Loans/Retail 324

Asset), Sales Team, RM(PB), CRO(PB) and MRO(RB) may be suitably advised to visit the dealerships regularly and develop relationships to tap the potential available. Auto Loan Counselors may be empanelled and if needed be placed at the dealerships to source the applications. (Circular No. PB/AL/1/32 dated November 21, 2011) MOU with Force Motors Ltd (FML) We have entered into an MOU with Force Motors Ltd (FML) on 4th January 2012. SBI becomes the preferred financier for FML cars through this MOU. We will work in close coordination with FML dealerships for generating more car loans and involve in regular joint promotional activities to explore the opportunities available in the market. FML will promote our Car Loan Schemes to their customers. 2. Please arrange to initiate interactions with the local FML team and arrange for mapping of branches with the dealerships. The CM (Auto Loans/Retail Asset), Sales Team, RM(PB), CRO(PB) and MRO(RB) may be suitably advised to visit the dealerships regularly and develop relationships to tap the potential available. Auto Loan Counselors may be empanelled and if needed be placed at the dealerships to source the applications. (Circular No. PB/AL/1/37 dated January 10, 2012) MOU with Mahindra Reva Electric Vehicles Pvt Ltd(MREVPL) We have signed an MOU with Mahindra Reva Electric Vehicles Pvt Ltd(MREVPL) on 18th January 2012. Through this MOU, SBI has become the preferred financier of MREVPL cars pan India. As part of Banks ongoing Green Banking initiatives, it has been decided to extend 0.25% concession in interest rate than the regular card rate to customers buying Reva Electric Cars. (Circular No. PB/AL/1/41 dated February 14, 2012)

325

Appendix LIST OF CIRCULARS CONSOLIDATED IN THE MASTER CIRCULAR Sr e-circular No. No. 1. NBG/PBU/PLVERIFIC/17/2005-06 2. PBBU/HL/AX/14 Date 10.02.06 Subject EMPLOYMENT OF VERIFICATION OF AGENCIES OPERATIONAL RISK MANAGEMENT NRI-CAR LOAN SCHEME SBI CAR LOAN SCHEME:CAR LOAN OVERDRAFT SBI NRI CAR LOAN SCHEME REVISION EMPLOYMENT OF VERIFICATION OF AGENCIES NRI-CAR LOAN SCHEMEMODIFICATIONS CAR LOAN SCHEME: REVIEW AND MODIFICATIONS MODIFICATION IN CAR LOAN SCHEME CAR & TWO WHEELER LOAN SCHEME-PAYMENT OF SERVICE FEE TO CAR DEALERS & INCENTIVE TO DSE RBI COMPLIANCE: OPERATIONAL RISK:WEAK SPOTS IN SANCTION AND DISBURSEMENTS PAYMENT OF DEALER SERVICE FEE & DEALER SALES EXECUTIVE INCENTIVE AUTHORISED BRANCHES FOR CAR LOANS PERSONAL BANKING

23.06.2006

3. 4. 5 6. 7. 8. 9. 10.

NBG/PBU/ALCARLOANS/6/2006-07 NBG/PBU/ALCARLOANS/7/2006-07 NBG/PBU/ALCARLOANS/8/2006-07 NBG/PBU/PLVERIFIC/57/2006-07 NBG/PBU/ALCARLOANS/12/2006-07 NBG/PBU/ALCARLOANS/4/2007-08 NBG/PBU/ALCARLOANS/7/2007-08 NBG/PBU/ALCARLOANS/8/2007-08

18.10.2006 07.11.2006 11.11.2006 15.01.2007 17.02.2007 04.07.2007 05.11.2007 01.12.2007

11.

NBG/PBU/AL-AUTO LOAN /5/2008-09

30.09.2008

12.

NBG/PBU/ALCARLOANS/6/2008-09 NBG/PBU/ALCARLOANS/7/2008-09 NBG/PBU/AL-

01.10.2008

13. 14.

14.10.2008 05.12.2008 326

AUTOLOAN/9/2008-09 15. 16. 17. NBG/PBU/ALCARLOANS/6/2009-10 NBG/PBU/ALCARLOANS/11/2009-10 NBG/PBU/ALCARLOANS/12/2009-10 NBG/PBU/ALAUTOLOAN/13/2009-10 04.04.2009 06.05.2009 03.06.2009

ADVANCES-EMPLOYMENT OF VERIFICATION AGENCIES SBI NANO CAR LOAN SCHEME PER.BKG.CAR LOANS-TAKE OVER NORMS ONLINE SOURCING OF APPLICATIONS THROUGH SBI WEB SITE PERSONAL BANKING ADVANCES:REVIEW PROCEDURE OF REJECTED APPLICATIONS PER.BKG-NEW SCHEME :SBI EZEE CAR LOAN SCHEME PER.BKG-SBI TML EMP CAR LOAN-NEW PRODUCT CODE PER.BKG-AUTO LOANSREVISION IN INTEREST RATE W.E.F.29.06.09 PER.BKG ADVANCES-SBI NANO CAR LOAN SCHEME PER.BKG-SBI NANO CAR LOAN SCHEME SBI EZEE CAR LOAN SCHEME EXTENDED UP TO 31.03.10 PER.BKG-NEW CAR LOAN SCHEME-SBI ADVANTAGE CAR LOAN PERSONAL BANKING: SBI ADVANTAGE CAR LOAN SCHEME PRODUCT CODES PERSONAL BANKING: CAR LOAN, EXTENSION OF SBI EZEE CAR LOAN INTEREST RATE TO SBI ADVANTAGE CAR LOAN REVIEW AND EXTENSION OF SBI TML EMPLOYEE CAR LOAN SCHEME MOU WITH MAHINDRA AND

18.

10.06.2009

19. 20. 21.

NBG/PBU/ALCARLOANS/14/2009-10 NBG/PBU/ALCARLOANS/15/2009-10 NBG/PBU/ALAUTOLOAN/16/2009-10 NBG/PBU/ALCARLOANS/18/2009-10 NBG/PBU/ALCARLOANS/21/2009-10 NBG/PBU/ALCARLOANS/25/2009-10 NBG/PBU/ALCARLOANS/26/2009-10

27.06.2009 27.06.2009 27.06.2009

22. 23. 24. 25.

06.07.2009 17.07.2009 29.09.2009 14.10.2009

26.

NBG/PBU/ALAUTOLOAN/27/2009-10 NBG/PBU/ALAUTOLOAN/28/2009-10

31.10.2009

27.

17.12.2009

28

NBG/PBU/ALCARLOANS/29/2009-10 NBG/PBU/AL-

18.02.2010

29.

18.02.2010 327

30. 31. 32.

CARLOANS/30/2009-10 NBG/PBU/ALCARLOANS/31/2009-10 NBG/PBU/ALCARLOANS/32/2009-10 NBG/PBU/ALCARLOANS/33/2009-10

02.03.2010 02.03.2010 29.03.2010

MAHINDRA LTD MOU WITH HONDA SIEL CARS MOU WITH TOYOTO KIRLOSKAR MOTORS PER.BKG EXTENSION OF INTEREST RATE FOR ALL NEW CAR LOANS TILL 30TH APRIL 2010 PER-BKG MOU WITH CHEVORLET PERSONAL BANKING: CAR LOAN INTERST RATE OF REVIEW- EXTENSION OF INTEREST RATE FOR ALL NEW CAR LOANS TILL 30TH JUNE PERSONAL BANKING:CAR LOAN LIABILITIES IN CIBIL REPORTS DISCRETION TO SANCTIONING AUTHORITY PENAL INTEREST POLICY IMPLEMENTATION OF CREDIT SCORING MODELS Personal Banking:Auto Loans(i)SBI Ezee Car Loan(ii)SBI Advantage Car Loan Personal Banking:Auto Loans : Migration to Base Rate w.e.f 1st July 2010 PERSONAL BANKING: CAR LOANS;TIE -UP WITH TATA MOTORS LTD., (TML);SBI TML EMPLOYEE CAR LOAN SCHEME Implementation of Retail Scoring Models For Advances to Personal Banking Segment Implementation of Credit Scoring Models for Personal Banking Segments

33. 34.

NBG/PBU/ALCARLOANS/34/2009-10 NBG/PBU/ALAUTOLOAN/1/2010-11

29.03.2010 30.04.2010

35.

NBG/PBU/ALCARLOANS/2/2010-11

26.05.2010

36. 37.

NBG/PBU/HL-HOME LOANS/14/2010 - 11 PBBU/RSA/1

18.06.2010 23.06.2010

38.

NBG/PBU/ALAUTOLOAN/4/2010-11 NBG/PBU/ALAUTOLOAN/6/2010-11 NBG/PBU/ALAUTOLOAN/8/2010-11

30.06.2010

39.

30.06.2010

40.

29.07.2010

41.

PBBU/RSM/ 310

17.07.2010

42.

PBBU/RSM/ 319

11.08.2010

328

43.

NBG/PBU/ALAUTOLOAN/9/2010-11 NBG/PBU/ALAUTOLOAN/10/2010-11 PBBU/RSM/325

18.08.2010

44.

21.08.2010

45.

03.09.2010

46.

NBG/PBU/ALAUTOLOAN/11/2010-11 NBG/PBU/ALAUTOLOAN/12/2010-11

30.09.2010

47.

27.09.2010

48.

NBG/PBU/ALAUTOLOAN/13/2010-11

30.09.2010

49.

NBG/PBU/ALAUTOLOAN/14/2010-11

21.10.2010

50.

NBG/PBU/ALAUTOLOAN/15/2010-11

27.10.2010

51.

NBG/PBU/HL-HOME LOANS/31/2010 - 11 NBG/PBU/ALCARLOANS/16/2010 - 11

06.11.2010

52.

22.11.2010

53.

NBG/PBU/ALCARLOANS/17/2010 - 11

4.12.2010

PERSONAL BANKING: CAR LOANS - CAR-A-BRANCH CAMPAIGN PERSONAL BANKING: AUTO LOANS - AUTO LOANS COUNSELORS Implementation of Retail Scoring Models For Advances to Personal Banking Segment PERSONAL BANKING: CAR LOANS, MOU WITH FORD INDIA PVT LTD PERSONAL BANKING AUTO LOANS : CONTINUATION OF INTEREST RATE W.E.F 1ST OCTOBER, 2010 TO 31ST DECEMBER, 2010 PERSONAL BANKING CAR LOANS : FESTIVAL SEASON OFFER: CONCESSION IN INTEREST RATE W.E.F 1ST OCTOBER, 2010 TO 31ST DECEMBER, 2010 PERSONAL BANKING : CAR LOANS; FESTIVAL SEASON: AUTHORISATION OF BRANCHES PERSONAL BANKING : AUTO LOANS CHANGE IN INTEREST RATE W.E.F 21ST OCTOBER, 2010 TO 31ST DECEMBER, 2010 PBBU : GUIDELINES ON DEALING WITH CIBIL CREDIT INFORMATION REPORT PERSONAL SEGMENT: CAR LOANS NEW PRODUCT: CERTIFIED PRE-OWNED CAR LOAN SCHEME PERSONAL BANKING: CAR LOAN SBI ADVANTAGE CAR LOAN SCHEME MODIFICATIONS: EMI/NMI RATIO

329

54.

NBG/PBU/ALCARLOANS/18/2010 - 11

27.12.2010

55.

NBG/PBU/ALAUTOLOAN/20/2010 11 NBG/PBU/ALAUTOLOAN/21/2010 11 NBG/PBU/ALAUTOLOAN/22/2010 11 NBG/PBU/ALCARLOANS/23/2010 - 11

31.12.2010

56.

05.01.2011

57.

06.01.2011

PERSONAL BANKING: CAR LOANS AUTHORIZATION OF BRANCHES: EXTENSION OF PERIOD PERSONAL BANKING : AUTO LOANS : INTEREST RATE W.E.F 3RD JANUARY, 2011 TO 31ST MARCH, 2011 PERSONAL BANKING: AUTO LOANS MODIFICATION OF DOCUMENTS PERSONAL SEGMENT: CAR LOANS NEW PRODUCT CODES PERSONAL BANKING: CAR LOAN - NEW PRODUCT: SBI EZEE CAR LOAN (NANO SUBVENTION) SCHEME PERSONAL BANKING: CAR LOAN SBI EZEE CAR LOAN ( NANO - SUBVENTION) SCHEME EXTENDED UPTO 31ST MARCH' 2011 PERSONAL BANKING : AUTO LOANS REVIEW OF BASE RATE - INTEREST RATE OF AUTO LOANS EFFECTIVE FROM 14TH FEBRUARY, 2011 PERSONAL BANKING: CAR LOAN SBI- TATA MOTORS LIMITED (TML) JOINT PROMOTION CAMPAIGN CONTINUATION OF NEW PRODUCT: SBI EZEE CAR LOAN ( NANO - SUBVENTION) TILL 31.3.2011 AT REVISED RATE 8.25% PERSONAL BANKING: CAR LOAN TIE UP WITH TOYOTA KIRLOSKAR MOTORS PVT LTD (TKM) PERSONAL BANKING: CAR LOAN SBI - MERCEDES BENZ

58.

06.01.2011

59.

NBG/PBU/ALAUTOLOAN/27/2010 11

05.02.2011

60.

NBG/PBU/ALAUTOLOAN/28/2010 11

12.02.2011

61.

NBG/PBU/ALAUTOLOAN/29/2010 11

14.02.2011

62.

NBG/PBU/ALAUTOLOAN/30/2010 11 NBG/PBU/ALCARLOANS/31/2010 - 11

23.02.2011

63.

25.02.2011

330

64. 65.

NBG/PBU/ALCARLOANS/32/2010 - 11 NBG/PBU/ALCARLOANS/33/2010 - 11 NBG/PBU/ALCARLOANS/34/2010 - 11 NBG/PBU/ALCARLOANS/1/2011 - 12

04.03.2011 29.03.2011

66.

31.06.2011

67.

05.04.2011

68.

NBG/PBU/ALAUTOLOAN/2/2011 - 12

08.04.2011

69.

NBG/PBU/ALCARLOANS/3/2011 - 12

09.04.2011

70.

NBG/PBU/ALAUTOLOAN/4/2011 - 12

21.04.2011

71.

NBG/PBU/ALAUTOLOAN/5/2011 - 12

29.04.2011

72.

NBG/PBU/ALAUTOLOAN/6/2011 - 12

12.05.2011

TIE UP - SBI MERCEDES ADVANTAGE CAR LOAN CAR A BRANCH CAMPAIGN EXTENSION TILL 31.3.2011 PERSONAL BANKING: CAR LOAN - AUTHORISATION OF BRANCHES FOR CAR LOANS PERSONAL BANKING : AUTO LOANS REVIEW OF INTEREST RATE W.E.F 1ST APRIL, 2011 PERSONAL BANKING : AUTO LOANS AUTO LOAN COUNSELORS : MODIFICATIONS IN DOCUMENTS PERSONAL BANKING: CAR LOAN TIE UP WITH TOYOTA KIRLOSKAR MOTORS PVT LTD (TKM) PERSONAL BANKING: CAR LOAN SBI- TATA MOTORS LIMITED (TML) JOINT PROMOTION CAMPAIGN SUBVENTION) TILL 30.6.2011 AT REVISED RATE 8.99% PERSONAL BANKING : AUTO LOANS CHANGE IN BASE RATE W.E.F. 25TH APRIL, 2011 REVISION IN INTEREST RATES OF AUTO LOANS PERSONAL BANKING: CAR LOANS REVIEW OF INTEREST RATE W.E.F.1ST MAY 2011 NEW SINGLE PRODUCT NAME : SBI ADVANTAGE CAR LOAN INTEREST RATE: SINGLE INTEREST RATE IRRESPECTIVE OF LOAN AMOUNT AND TENURE PERSONAL BANKING : AUTO LOANS CHANGE IN BASE RATE W.E.F. 12TH MAY, 2011 REVISION IN INTEREST RATES

331

73.

NBG/PBU/ALCARLOANS/7/2011 - 12

30.05.2011

74.

NBG/PBU/ALCARLOANS/8/2011 - 12

07.06.2011

75.

NBG/PBU/ALCARLOANS/9/2011 - 12

09.06.2011

76.

NBG/PBU/ALCARLOANS/10/2011 - 12 Circular letter No. PB/AL/1/ 84 NBG/PBU/ALCARLOANS/11/2011 - 12

15.06.2011

77. 78.

18.06.2011 09.07.2011

79.

NBG/PBU/ALAUTOLOAN/12/2011 12

11.07.2011

80.

NBG/PBU/ALCARLOANS/13/2011 - 12

16.07.2011

81.

NBG/PBU/AL-2 WHEELER LOANS/14/2011 - 12

20.07.2011

OF AUTO LOANS PERSONAL BANKING: CAR LOAN - "CAMPAIGN ADVANTAGE": FINANCING HIGH VALUE CARS PERSONAL BANKING: CAR LOAN TIE UP WITH TOYOTA KIRLOSKAR MOTORS PVT LTD (TKM) PERSONAL BANKING: CAR LOAN SBI- TATA MOTORS LIMITED (TML) JOINT PROMOTION CAMPAIGN EXTENSION OF NEW PRODUCT: SBI EZEE CAR LOAN ( NANO - SUBVENTION) TILL 31.8.2011 AT REVISED RATE 9.25% PERSONAL BANKING: CAR LOANS CAMPAIGN "THREE CS: CAMPAIGN CERTIFIED CARS" PERSONAL BANKING: CAR LOANS TO AGRICULTURISTS PERSONAL BANKING: CAR LOAN SBI- HYUNDAI MOTORS INDIA LIMITED (HMIL) NEW PRODUCT: SBI HYUNDAI SUBVENTION CAR LOAN SCHEME PERSONAL BANKING : AUTO LOANS - CHANGE IN BASE RATE W.E.F. 11TH JULY, 2011 REVISION IN INTEREST RATES OF AUTO LOANS PERSONAL BANKING: CAR LOAN SBI HYUNDAI SUBVENTION CAR LOAN SCHEME PERSONAL BANKING: CAR LOANS - TWO WHEELER SCHEME FOR NEW CLERICAL STAFF

332

82.

NBG/PBU/ALCARLOANS/15/2011 - 12

19.07.2011

83.

NBG/PBU/ALCARLOANS/16/2011 - 12

03.08.2011

84.

NBG/PBU/ALCARLOANS/17/2011 - 12

06.08.2011

86.

NBG/PBU/ALCARLOANS/18/2011 - 12

06.08.2011

87.

NBG/PBU/ALCARLOANS/19/2011 - 12

11.08.2011

88.

NBG/PBU/ALAUTOLOAN/20/2011 12

12.08.2011

89.

NBG/PBU/ALAUTOLOAN/22/2011 12

30.08.2011

90.

NBG/PBU/AL-

02.09.2011 333

PERSONAL BANKING: CAR LOAN - WAIVER OF PROCESSING FEE FOR MARUTI CAR LOANS TILL 31ST AUGUST 2011 PERSONAL BANKING: CAR LOAN - SBI- MARUTI SUZUKI INDIA LIMITED (MSIL) - NEW PRODUCT: SBI MARUTI SUBVENTION CAR LOAN SCHEME PERSONAL BANKING: CAR LOAN - SBI- TATA MOTORS LIMITED (TML) JOINT PROMOTION CAMPAIGN DISCONTINUATION OF PRODUCT: SBI EZEE CAR LOAN (NANO - SUBVENTION) W.E.F. 11.08.2011 PERSONAL BANKING: CAR LOAN - SBI- MARUTI SUZUKI INDIA LIMITED (MSIL) - NEW PRODUCT: SBI MARUTI SUBVENTION CAR LOAN SCHEME PERSONAL BANKING: CAR LOAN - SBI - TATA NANO CAR LOAN SCHEME BETWEEN 12TH AUGUST'11 AND 30TH SEPTEMBER'11 PERSONAL BANKING : AUTO LOANS - CHANGE IN BASE RATE W.E.F. 13TH AUGUST, 2011- REVISION IN INTEREST RATES OF AUTO LOANS PERSONAL BANKING : AUTO LOANS - FESTIVAL PERIOD OFFER: CONCESSION IN INTEREST RATE AND PROCESSING FEE - EXTENSION OF AUTHORISATION OF BRANCHES PERSONAL BANKING: CAR

CARLOANS/23/2011 - 12

91.

NBG/PBU/ALCARLOANS/24/2011 - 12

20.09.2011

92.

NBG/PBU/ALAUTOLOAN/25/2011 12 NBG/PBU/ALAUTOLOAN/26/2011 12

20.09.2011

93.

21.09.2011

94.

NBG/PBU/ALCARLOANS/27/2011 - 12

07.10.2011

95.

NBG/PBU/ALCARLOANS/28/2011 - 12 NBG/PBU/ALAUTOLOAN/29/2011 12 NBG/PBU/ALCARLOANS/30/2011 - 12

15.10.2011

96.

20.10.2011

97.

08.11.2011

98.

NBG/PBU/ALCARLOANS/31/2011 - 12 NBG/PBU/ALCARLOANS/32/2011 - 12

17.11.2011

99.

21.11.2011

LOAN - SBI- MARUTI SUZUKI INDIA LIMITED (MSIL) EXTENSION OF SBI MARUTI SUBVENTION CAR LOAN SCHEME PERSONAL BANKING CAR LOAN SBI FORD INDIA PVT LTD (FIPL) NEW PRODUCT SBI FORD SUBVENTION CAR LOAN SCHEME VALID IN BANGALORE CIRCLE TILL 31ST OCTOBER 20011 PRODUCT CODE: 6251-1095 PERSONAL BANKING AUTO LOANS INTEREST RATE FOR SBI NRI CAR LOAN SCHEME PRODUCT CODE: 6251-1095 PERSONAL BANKING: AUTO LOANS - EXTENSION IN REPAYMENT PERIOD ON INCREASE IN FLOATING RATE OF INTEREST PERSONAL BANKING: CAR LOANS - UP-SELLING OF TWO WHEELER LOANS TO CAR LOAN CUSTOMERS PERSONAL BANKING: CAR LOAN - SBI MARUTI : ALTO 9.99% SUBVENTION SCHEME PERSONAL BANKING: AUTO LOANS - REVISED AUTO LOAN APPLICATION FORM PERSONAL BANKING: CAR LOAN - SBI TOYOTA: ETIOS AND LIVA SUBVENTION SCHEME PERSONAL BANKING: CAR LOAN SBI MARUTI : ALTO 9.99% SUBVENTION SCHEME PERSONAL BANKING: CAR LOANS - MOU WITH NISSAN MOTORS INDIA PVT LTD (NMIPL).

334

100. NBG/PBU/ALCARLOANS/33/2011 - 12

28.11.2011

101. NBG/PBU/ALCARLOANS/34/2011 - 12

02.12.2011

102. NBG/PBU/ALCARLOANS/35/2011 - 12

12.12.2011

103. Cir. No. PBBU/HL/41

11.10.2011

PERSONAL BANKING: CAR LOAN - PAYMENT OF INCENTIVE TO DEALER SALES EXECUTIVES (DSES) AT BPR CENTRES BY AUTHORISED BRANCHES PERSONAL BANKING: CAR LOAN - EXTENSION OF SBI TOYOTA: ETIOS & LIVA SUBVENTION SCHEME TILL 31.12.2011 PERSONAL BANKING: CAR LOAN - EXTENSION OF SBI MARUTI SUBVENTION CAR LOAN SCHEME PERSONAL BANKING: HOME LOAN NEW INDIA ASSURANCE CO. (PERSONAL ACCIDENTAL COVER FOR HOME LOAN/AUTO LOAN BORROWERS CORRECT PROCEDURE FOR LODGING CLAIM PERSONAL BANKING : AUTO LOANS - EXTENSION OF FESTIVAL PERIOD OFFER: CONCESSION IN INTEREST RATE AND PROCESSING FEE PERSONAL BANKING: CAR LOANS - MOU WITH FORCE MOTORS LTD (FML) PERSONAL BANKING : CAR LOANS - REVISION IN INTEREST RATES OF CAR LOANS PERSONAL BANKING: CAR LOANS "SBI CAR LOAN SCHEME" PERSONAL BANKING: CAR LOANS "SBI CAR LOAN SCHEME"

104. NBG/PBU/ALAUTOLOAN/36/2011 12

30.12.2011

105. NBG/PBU/ALCARLOANS/37/2011 - 12 106. NBG/PBU/ALCARLOANS/38/2011 - 12

10.01.2012

14.01.2012

107. NBG/PBU/ALCARLOANS/39/2011 - 12 108. NBG/PBU/ALCARLOANS/40/2011 - 12

20.01.2012

02.02.2012

335

109. NBG/PBU/ALAUTOLOAN/41/2011 12

14.02.2012

110. NBG/PBU/ALCARLOANS/42/2011 - 12

22.02.2012

111. NBG/PBU/ALCARLOANS/43/2011 - 12

05.03.2012

112. NBG/PBU/ALCARLOANS/44/2011 - 12

21.03.2012

113. NBG/PBU/ALCARLOANS/1/2012 - 13

29.03.2012

114. NBG/PBU/ALCARLOANS/3/2012 - 13 115. NBG/PBU/ALCARLOANS/4/2012 - 13

12.04.2012

13.04.2012

116. NBG/PBU/ALCARLOANS/5/2012 - 13

21.04.2012

PERSONAL BANKING: CAR LOANS - MOU WITH MAHINDRA REVA ELECTRIC VEHICLES PVT. LTD.(MREVPL) INTEREST CONCESSION FOR ALL GREEN CARS PERSONAL BANKING: CAR LOAN - SBI HYUNDAI SUBVENTION CAR LOAN SCHEME PERSONAL BANKING: CAR LOAN - LOWER MARGIN SCHEME FOR FINANCING TATA CARS PERSONAL BANKING: CAR LOAN - SBI TOYOTA SUBVENTION CAR LOAN SCHEME PERSONAL BANKING: CAR LOAN - LOWER MARGIN SCHEME FOR FINANCING UTILITY VEHICLES OF TATA PERSONAL BANKING: CAR LOAN - SBI HYUNDAI SUBVENTION CAR LOAN PERSONAL BANKING: CAR LOAN - SBI TOYOTA SUBVENTION CAR LOAN SCHEME PERSONAL BANKING : SBI CAR LOANS - REVISION IN INTEREST RATES W.E.F. 23.04.2012

336