Advances

Canara Bank
Staff Training college , Bangalore
ADVANCES
CREDIT RISK MANAGEMENT POLICY
(Cir no.469/2013 dated 12-09-2013, 302/2014 dated 30.05.2014 & 239/2015 dated 13.05.2015)
Thrust Areas: Agriculture, MSME, Export segment, Other Priority, Manufacturing Sector,
Service Sector etc. Non-Thrust Areas: Commercial Real Estate, NBFCs, Capital Market &
Industries which do not have growth potentials.
Prudential exposure limit to a single borrower: 15% of banks capital funds for Low Risk &
Normal Risk customers, and 5% additional exposure for infrastructure projects. For
Moderate Risk Borrowers: 12% of capital funds (additional 3% for infrastructure projects)
and for High Risk Borrowers: 8% of capital funds with 2% extra for infrastructure.
RBI has fixed exposure limit for single borrower Oil Companies,rated LR/MR at 25% with 5%
leverage to go beyond 25% in case of need for Infra; MR : 20% with + of 3%; HR-12% with
+ of 2% (LDGM 8/2015 available on Cannet-Communications- Circulars)
For group accounts, as prescribed by RBI.(regulatory limits ie 40% of capital funds. For
Infrastructure lending, it can be 50% of capital funds).
Board can permit 5% extra limits, with in regulatory limits.
The ceilings on single / group exposure limit would not be applicable where principal and
interest are fully guaranteed by the Government of India.(Cir 469/2013)
Consortium Financing: No ceiling on number of banks but each banks share should be at
least 10% of total Fund Based limits. Can be reduced selectively.
Under MBA RBI has made information sharing between the banks wef 01.01.2013
mandatory
Joint Lending Arrangement: The scheme shall be applicable to lending arrangements with a
single borrower with aggregate credit limits (both FB & NFB) of Rs.150 crore and above
involving more than one public sector bank(Cir 173/2013)
Prudential exposure limit for individual non corporate borrowers, which can be permitted by
concerned sanctioning authorities : Individuals Rs.10 crores, Proprietorship : Rs.50 crores,
Association/HUF- Rs.50 crores, Trust/Society: (Education Institutions and Hospitals Rs. 100
cr and Others Rs.75 Cr )& Partnership concerns: Rs.75 crores, LLP concerns: Rs.100
crores.(469/2013, 268/2014)
Substantial Exposure Limits : 600% or 800% of capital funds as on 31st March of previous
year depending upon degree of concentration risk bank is exposed to. (For substantial
exposure, the threshold limit is arrived at 10% of capital funds)
Exposure to Real Estate : 20% of Gross Credit and to Commercial real estate sector should
not exceed 5% of Gross Credit.
Canara Rent and Canara Mortgage comes under Commercial Real Estate Sector.
Exposure to NBFCs: In terms of RBI guidelines the exposure (both lending and investment,
including off balance sheet exposures) to a single NBFC/NBFC-AFC/IFC (Asset Financing
Companies/ Infrastructure Finance Companies) is fixed not to exceed 10% / 15%
respectively, of the Bank's capital funds as per the last audited balance sheet. However,
Bank can assume exposures on a single NBFC/ NBFC-AFC/IFC up to 15%/20%
Canara Bank
respectively and 12.5% in respect of NBFCs pre-dominantly engaged in lending against

collateral security of gold jewellery, of their capital funds provided the exposure in excess of
10%/15%/12.5% (7.5% in respect of NBFCs is predominantly engaged in lending against
collateral of Gold jewellery) respectively, is on account of funds on-lent by the NBFC/ NBFCAFC/IFC to the infrastructure sector.( Cir 469/2013)
Reserve Bank of India has advised that a new category of NBFC viz., Non-Banking Finance
Company Factors has been introduced and the Principal Business of said NBFC
prescribes that An NBFC-Factor shall ensure that its financial assets in the factoring
business constitute at least 50 per cent of its total assets and its income derived from
factoring business is not less than 50 per cent of its gross income. Compliance to Factoring
Regulation Act 2011 and Notification from RBI. (Cir 469/2013 Modification from 75% to 50%
vide LDGM 17/2015. Income referred excludes income relating to bill discounting facility
extended by Factoring Company. Financial assistance extended by Factoring Co. is
secured by hypothecation/assignment of receivables in their favour )
Prohibition of Bank Finance to NBFCs : NBFCs are prohibited from contributing capital to
any partnership firm or to be partners in partnership firms including LLP. Said prohibition is
applicable in respect of Association of Persons .
Securitization : Purchase of assets through direct assignment of cash flows from originating
NBFCs/Banks/FI only from those rated A and above. Bank shall purchase portfolio with
underlying assets pertaining to agriculture, MSME, Retail and NP portfolio. Gold Loan
pools are not eligible for purchase under the scheme. Original repayment tenor of
underlying loans in the portfolio being purchased shall normally be not more than 25 years
in case of HL and 15 years in case of MSME and other priority/NP loans. Escrow
Mechanism for repayments is to be ensured. Delegation CAC of Board and MC of Board.
Financing Producers of Feature Films: Bank Finance Maximum: 35%, Margin :25%,
advance from distributors: 40%, 5 years track record. No default to NFDC/other FI.
Borrowers (Corporates and other constituents) having sales turnover of over Rs.50 crores
shall disclose Ageing Schedule of their overdue payables
in their periodical
returns/statements submitted to the Bank.
Loans to individuals against shares Maximum Rs.20 lakhs for Demat shares having DP
account with us and Rs.10 lakh for physical form shares, from entire banking system
- Margin on shares: 50%
- For subscribing to IPOs, maximum quantum is Rs.10 lakhs only.
- Under ESOP scheme, finance upto 90% of the purchase price with maximum Rs.20
lakhs. (If the borrower is having another loan against shares, total quantum including
ESOP should not exceed Rs.20 lakhs).
As per Section 19 (2) of BR Act, 1949, no Banking Company shall hold shares as security
in any company either as mortgagee or as absolute owner of an amount exceeding 30% of
paid up capital of the company or 30% of its own paid up capital and reserves, whichever is
less.
Lending to Capital Market: Not to exceed 40% of Banks networth, of which Banks direct
investment in shares, debentures etc., not to exceed 20% of NW.
Loans to Mutual Funds: Upto 20% of net asset of the scheme, max.6 months.
Canara Bank
An internal exposure ceiling is fixed for discounting the bills co-accepted by Private Sector
Banks, Co Operative Banks and other Non Prime Foreign Banks for negotiation of
documents under LCs, within 50% of Net Owned Funds of such banks.(with in 25% of NOF
in case of co-op banks).
Bank may directly lend to Private Sector Banks having tangible net worth of Rs.1000 crores
and above.
For Construction Companies, Assessment of working capital limits: Not to exceed 9 times of
Net Owned Funds of the entity. This may be waived to Low Risk rated entities selectively by
GM(HO) and above authorities.
Lending on the guarantees issued by other Banks/FIs: Borrowers satisfactory dealings with
us for at least 3 years, Bank which issued guarantee should have fund based exposure of at
least 10% of the amount guaranteed.
All proposals of software units falling within the sanctioning powers of the Circle Offices shall
be screened by a Software Advisory Committee at the respective Circle Offices. After this,
the same shall be placed before the competent authority for sanction. Similarly, all proposals
of software units falling within the sanctioning powers of HO including the proposals from
PCBs shall be screened by the Software Advisory Committee at HO and after this, the
proposal shall be placed before competent authority.(Cir 469/2013)
At present, bank is pricing loans based on Credit Risk Rating done under RAM for
borrowers with exposure above Rs. 2 crores, Based on ECAI Rating for borrowers with
exposure of Rs. 5 cr and above, Borrowers with exposure of Rs.2 lacs to 2 cr (other than
retail lending) based on scoring norms.
Maximum Lending Rates (HO Cir 559/2015)

The maximum rates stipulated over the Base Rate are as under:
Working Capital limits/Short
Maximum 700 bps over Base Rate
Term Loans
Maximum Rate
Term Loans -Upto 5 years
-740 bps over Base Rate
- >5 to 10 years
- >10 years
(Incl . Term/Tenor Premium)
ECNOS
- BR + 500 bps
Clean OD/ DPN
- BR + 700 bps
Benchmark Current Ratio : Turnover Method: 1.25 and MPBF/Cash Budget Methods: 1.33
If the Current Ratio is less than prescribed norms, if bank exposure is Rs. 50 crores and
above, Quarterly Cash flow statements will be called for and monitored to ensure that there
is no further deterioration in liquidity.
If Current Ratio is less than One, In case of borrowers falling under sanctioning powers of
CACs : GM (CO), GM (HO),CGM CO/HO, ED/CMD, and above authorities, the respective
authorities can permit renewal/ enhancement / additional limits. However, the existing
guidelines of getting clearance from next higher authority for additional limits by authorities
below CGM/GM (CO) shall continue. (268/2014)
Canara Bank
Fixation of time schedule for Working Capital limits: LR1 max.18 months, LR2& LR3
max.15 months, NR, MR max.12 months.
MSME Accounts Tenability :LR 3 rating :- 15 months; LR 1 & 2 :- 24 months
In case of new borrowal accounts, Low Risk (LR1,LR2,LR3) and Normal Risk rated
accounts only can be financed by respective Sanctioning Authority.
Moderate Risk and High Risk accounts: Only renewal by concerned sanctioning authority.
Additional limits by next higher authority.
Duration of limits: Employees OD: 2 years, Gold Card for Exporters : 2 years, Established
Exporters: 2 years, LUCC : 3 years, Canara trade: 2 years, SME : may be permitted for 2
years. Canara Kisan OD:3 years, KCCS:5 years, Kisan Suvidha: 5 years, Krishi Mithra CCS:
3 years.
Rejection of SME, EL proposals with concurrence of next higher authority
Rejection of Export Credit proposals to be reported to CMD
Turnover method applicable to SME Borrowers (Mfg/ Services) upto Rs.5 crores and Non
SME Borrowers & Traders upto Rs.2 crores. Traders, Merchants, Exporters, others etc.,
who are not having a pre-determined manufacturing /trading cycle- Upto Rs.2 Crore
MPBF method applicable above Rs. 2cr / Rs. 5cr (as above) : upto Rs. 25 crores.
Above Rs.25 crores, Cash Budget method or method of assessment (MPBF) opted by the
borrower
Loan System for delivery of Bank Credit is applicable for working capital limits of Rs.10
crores and above.
Agricultural term loans above Rs.100 lacs for new and Rs. 200 lacs for existing clients:
Project Appraisal by Agricultural Consultancy Services, HO.
Commitment charges : Limits of Rs.10 crores and above(FB&NFB) corporate borrower 0.25% of unutilized portion(Priority)(For Non Priority-1%)
Target for Export Credit is now reckoned for priority classification subject to certain
conditions. Refer to Priority Sector Classification in following chapters.
Corporate Debt Restructuring : Corporates
of Rs.10 crores and above under
MBA/Consortium/Loan Syndication/JLA. Accounts of Standard, Sub- Standard and Doubtful
assets are eligible
Debt restructuring for SMEs to be completed within 120 days Amount upto Rs.10 crores
for corporate and no ceiling for individuals/partnership (Now as per cir 245/2010, this is
merged in Loan Restructuring Policy of our Bank)
Project appraisal has to be done by Project Appraisal Cell/Group, CO/ HO/Authorised
appraisers:
-In case of existing parties Proposal with project cost of Rs. Rs.500 lacs and above,
new parties Rs. 200 lacs and above. Circles headed by DGM: PAC Circle to appraise
projects upto Proj Cost of Rs. 50 cr, Circles headed by GM/CGM, PAC of Circle to appraise
the projects with project cost of Rs. 100 Cr and above. Project appraisal guidelines linking
with Sanctioning Authority modified (HO Circular 302/2014)
Pre payment penalty in case of Term Loans transferred to other Banks : 2%
No Foreclosure/Prepayment penalty for Term Loans sanctioned to Individuals under
Floating Rate of Interest. (Modified HO Circular 434/2014)
Canara Bank
National Building Code 2005 is applicable for loans to construction of building, exceeding
Rs.25 crores
Quick Mortality Accounts are: Aggregate liability of Rs.5 lacs and above and becoming NPA
within 12 months from the date of disbursement for parties who availed limits for first time.
Mid Term review is applicable for all accounts under sanctioning powers of AGM, AGC CAC
and above and shall fall after 6 months from the date of sanction/review.
Validity Period of sanction (cir no.268/2014) : Working capital limits: 3 months, Term Loans
: 6 months, Short Term Loans/Ad hoc limits: 30 days. If limits are not availed within the
above period, sanction is to be revalidated by sanctioning authority. The revalidation can
be permitted by the sanctioning authority only once during the validity period of the
sanction. CAC of the Board is permitted to revalidate the credit limits/ loan sanctions in
respect of CAC/MC power accounts more than once on a case to case basis before the
expiry of the validity period.
Cancellation of Unavailed Portion of Limits: Sanctions upto next lower sanctioning authority
to Head of Circle: Cancellation by Head of Circle. CO Head sanction: Cancellation by CO
head CAC, HO sanctions Cancellation by GM, HO CAC only.
Term loan is a loan which has a specified maturity and may be payable in instalment or in
bullet form and with maturity in excess of one year.
In view of the above, the definition of TL is as under :
All loans on demand
and short
term loans
Loan Repayable
with maturity up to one year
on Demand
Term Loans
All term loans with maturity in excess of one year
Medium Term Loans
Long Term Loans
Above one year up to 3 years
Above 3 years
Credit Audit System: Scrutiny of accounts to improve general health of credit portfolio:
Aggregate (FB+NFB) limits of Rs.1 crore and above.
Credit Monitoring Officers: All borrowal accounts of Rs.1 crore and above (fund & Non-fund
based) shall be monitored once in 2 months by CMOs. In respect of HR account, depending
upon the exposure, monitoring frequency reduced to fortnightly.
Credit Administration & Monitoring Wing shall conduct monitoring of high value borrowal
accounts of Rs.10 crores and above & all PCB accounts(including MSME Sector &
excluding Agriculture). Special watch a/cs. Rs.1 cr. And above.
Extension of limits: restricted to 4 months with maximum 3 months at a time. Second
extension if any will be treated as sanction and subjected to Review.
Holding on operations may be permitted by the respective sanctioning authority. However, in
respect of the accounts under branch powers, the same may be permitted by the next
higher authority at CO. The maximum period upto which Holding on Operations may be
permitted shall depend upon the need and based on merits.
First level extension (for LR,NR,MR) can be permitted by concerned sanctioning authorities.
HO sanctions first level extension by GM, CO. CAC
Second level extension upto CO Head CAC sanctions by CO Head CAC. HO sanctions by
Canara Bank
HO GM.
In respect of High Risk Accounts: Only one extension can be permitted and for a period not
exceeding 2 month. Extension by CO head for sanctions upto below CO head powers and
by GM(HO) CAC for CO head CAC sanctions. GM(HO) CAC, for ED CAC sanctions:
respective authorities only. In case of CMD sanction, ED can permit extension. MC
accounts, extension by CAC of Board.
In expired limits, exposures beyond the sanctioned limits shall not be permitted except for
internal debits.
Credit Risk Rating ( Circular 204/2015): Pre sanction exercise for all loans of Rs. 2 lacs
and above. Models : Less than Rs. 2 lacs Portfolio model, Rs. 2 lacs and above up to Rs.
20 lacs Small Value Model, Over Rs. 20 lakhs to Rs. 2 crores Manual model and above
Rs. 2 crores RAM.
Bank accepted Domestic Credit Rating Agencies: Credit Analysis and Research Ltd
(CARE), CRISIL Ltd., INDIA Ratings Ltd (Formerly Fitch)., ICRA Limited, Brickwork Ratings
India Pvt. Ltd.(Brickwork).
International Credit Rating agencies: FITCH, MOODYS,
STANDARD AND POOR.
SME RATING: MOU with SME rating Agency of India Ltd (SMERA) promoted by SIDBI,
Other banks /FIs and CRISIL.
Valuation of Assets by outside valuers in Banks panel: Fixed Assets: LR Not required.
NR :once in 3 years (Rs. 2 cr and above) MR&HR: Once in 3 yrs, Rs. 1 cr and above.
Current Assets Valuation (Stock Aduit) Once in a year (LR Rs. 5 cr and above, NR,MR,HR,
unrated Rs. 1 cr and above). Doubtful Assets: once in 2 years (Rs. 1 cr and above).
If an account is downgraded by 2 notches (while doing annual risk rating of the account),
stock audit is to be conducted within 3 months from date of such down gradation.
Valualtion of properties (Land & Building) Rs. 10 crores and above minimum 2
independent valuation reports to be obtained.(Cir 469/2013) Lowest to be factored.
Accounts of Rs. 10 cr and above and complicated cases irrespective of amount, are
entrusted to valuers in Panel A. Other accounts are entrusted to Panel B.
Depreciation: Building 5% per year, Plant & Machinery 15% per year and Vehicle 20%
per year.
In case of falsification of accounts on the part of borrower, formal complaint against the
auditors of the borrowers should be lodged with the Institute of Chartered Accountants of
India (ICAI) through CO.
While giving Letter to Valuer for Entrustment of Current /Fixed Asset Valuation, enabling
clause should be inserted. (Reporting of professional misconduct to the concerned
professional bodies)
Wrong certificates issued by advocates - Report to CO, CO will report to BAR council of
India.
Portfolio Management: Categorisation of Standard Assets under Special Watch Category:
Category A : limits upto & including Rs. 1 lakh, Category B: limits over Rs. 1 lakh, upto &
including Rs. 5 lakhs. Category C: More than Rs. 5 lacs, upto & including Rs. 25 lakhs,
Category D: More than Rs. 25 lakhs and above upto Rs. 100 lacs. Category E: More than
Rs. 100 lacs. Drawing of SWL modified as Every Friday in addition to last day of the month
Canara Bank
(Cir. 363/2015)
Restrictions for Lending as per RBI guidelines: Sec 20(1) of BR act: Bank cannot advance
against its own shares. Selective Credit Control: At present only levy sugar.
- Bank should not grant loans/advances against FDRs issued by other banks
- No loans against CDs. (recently RBI permitted loans to Mutual Funds only on CDs)
- No Financing to Housing Projects undertaken by Govt. bodies for own use.
- No loans to be granted to companies for buy back of shares/securities.
- No loans to small/medium units engaged in manufacture of Aerosol Units using Chloro
Flouro Carbons (Ozone Depleting Substances).
Benchmark Parameters for Transport Operators: DSCR Not less than 1.50, DER not more
than 3:1 (can be relaxed to 4:1), Repayment max.6 yrs + max.3months moratorium.
Project Financing:
Project
other than Infrastructure
Infrastructure Agriculture
CRE
Refer
Parameters
Proj Cost </= Proj Cost
239/2015 *
Rs.100 lacs
>100 lacs
DER
3:1
(relax 2:1 (Relax 2:1 upto 4:1 3:1
3:1
4:1 by CO with reasons
(Not
more 4:1)
TLs: upto 10
head
than)
lacs 5.66:1
Contribution
20%
of 20% of Proj. 11% of Proj 15%of Proj 25%+25%
Proj.Cost
Cost
Cost
other Cost
adv money
Not less than
than power
(40% if land
purchased
For
Power
from Govt.
30%
can
accept 20
%
FACR
1.33
1.33 (1.20 1.25 (relaxed Not
less 2:1 & above
by CO head) to 1.11)
than 1.2
Relax 1.75
Repayment
7 years
7
years 15
yrs 5-7 years
If out of
excluding
lease
Overall tenor Exception
Excluding
10
yrs
moratorium
rentals:
7
10
years
moratorium
years from
including
Overall
Exception 20 for
DCCO with
moratorium
tenor
years
equipment
max.of
10
including
loans
years
moratorium
not
more
Other cases
than
12
i.e., sale of
years
property: 3
years from
DCCO
DSCR
1.50
1.50
(CO 1.50(
relax 1.50(1.25 by 1.50
head relax 1.25)
CO head)
exception
1.40)
1.25
Min
DSCR
Canara Bank
1.1 pa
4%
above 4% above the 4%
above NA
Cost
of cost of funds estimated
Funds
cost of funds
IRR(Applicable
For PC of Rs.
25
cr
and
above)
Different parameters for different Infra Projects as per 239/2015
Flexible structguring of Long Term Project loans to infrastructure and Core Industries
such as coal, crude oil, natural gas, petroleum refinery, Fertilizers, Steel (Alloy + Non
Alloy)m Cement and Electricity generation. Flexible structuring will be applicable to :
New Long Term project loans to infrastructure and core industries
Existing Long Term Project loans to infrastructure and core industries which have
completed DCCO.
Promoters contribution forms part of equity and shall comprise of ordinary share capital,
free reserves, surplus, revenue reserve, Preference share capital with maturity of 12
years and above. The balance equity can be contributed by others also which may
comprise of seed capital, soft loan fromTerm lending institution in lieu of capital,
Central/state subsidy, dev. Loan from State Govt., Development Rebate and loans from
Friends and relatives received on a long term basis and subordinated to the bank loan
etc.
Normal margin on Computer Hardware: 40 to 50%, repayment : 3 to 4 years.
LTV Ratio (Loan to Value Ratio) : Total Outstanding Liability/realizable value of security.
Shall not be more than that accepted at the time of sanction.
Banks overall exposure to capital market: Should not exceed 40% of its net worth as on
March 31st of the previous year. Of which, direct investment in shares should not exceed
20% of net worth. ( Repeated & hence to be deleted )
Margin on advances against Shares: 50%.
CREDIT DELIVERY GUIDELINES:
Canara Bank
1.
Loans upto Rs.25000
Br. 15 days
CO : NA
HO NA
2.
Kisan Card Br powers
15 days
3.
Other Priority Sector adv

Upto 25000
Over Rs. 25000
2 wks
30 days
45 days
8-9 wks
4.
MSME
Upto 25000
25000-5 lacs
5 lacs-25 lacs
Over 25 lacs
2 wk
4 wk
30 days
30 days
NA
4 wk
45 days
45 days
NA
4 WK
45 days
8 wks
5.
Export Credit
Sanction of
fresh/enhancement
Renewal of existing cr
limits
Sanction Adhoc cr
facilities
30 days(25)
30 days(15)
15 days (7)
45 days(25)
30 days(15)
15 days(7)
45 (25)
30(15)
15(7)
6.
Sole
Bkg/MBA/Consortium
Sanction of
fresh/enhancement
Renewal of existing cr
limits
Sanction Adhoc cr
facilities
30(30 Exp.cr)
30(30)
30(15)
45(45)
45(30)
30(15)
60(45)
45(30)
30(15)
TAKE OVER OF ACCOUNTS GUIDELINES (HO CIRCULAR 496/2015)

Takeover of Borrowal Accounts from other Banks: Current Ratio: Not less than 1.33/1.25.
DER not more than 2. Upto DGM(CO CAC) powers, Permission from Next Higher
authority is required.
Takeover of SME accounts: concerned sanctioning authority may sanction. Current Ratio:
up to 1 (including 1). DE ratio up to 3. No NOC.
During first year of takeover, adhoc limits can be permitted by Next Higher Authority upto
Circle Head CAC Powers. During first year of takeover, any enhancement/additional
Canara Bank
exposure by respective Circle Head and above authorities.

Residual Repayment period should not be enhanced/elongated in case of takeover of
Schematic Lending accounts.
Credit Administration: New Accounts: LR1, LR2,LR3 and Normal Risk Rating Accounts:
Sanctions by concerned sanctioning authority. Moderate Risk: Circle Head.
Existing Accounts: LR1, LR2, LR3, Normal Risk: Concerned sanctioning authority can permit
renewal with need based enhancement. Moderate Risk: Respective sanctioning authority
can do renewal and need based enhancement upto Circle Head CAC power account,
however when borrowal account is downgraded to Moderate account, immediate next
enhancement/additional limit should be got cleared by the next higher authority before
conveying the sanction. In case of HO power account concerned sanctioning authority can
renew/enhance or permit additional limit in moderate risk rated borrowal accounts. High
Risk upto Circle Head power account: Renewal/enhancement and additional limit can be
permitted but while taking additional exposure clearance from next higher authority should
be obtained. In case of high risk rated HO power account, respective sanctioning authority
can permit renewal with enhancement/additional/fresh exposure.
Borrowal account which are rated Low Risk, Normal Risk shall be eligible for take over from
other banks / FIs. The current external rating by ECAI should not be below BBB or
equivalent. To be permitted by respective sanctioning authority.
Takeover of borrowal accounts which are risk rated as Moderate risk in the pre-sanction
exercise the sanction can be accorded by Circle Head-CAC. Moderate Risk non takeover
account can be permitted by Head of Circle.
In case of takeover of accounts by the bank from any other bank where EDs or CMD have
worked earlier, the proposal shall be put up to the board for sanction.(Cir 228/2012)
ADDITIONAL POLICY GUIDELINES FOR TAKEOVER OF ACCOUNT (Cir 33/2012 &

496/2015)
1. Audited financial statements for the previous 3 years shall be obtained and analysed. Further
in respect of term loan take over, it is to be ensured that the projections and performance are
in tune with the actuals at the time of take over. In case of vast variations, reappraisal of the
project shall be undertaken and assessed. Likewise where vast difference in actual financials
vis--vis projections and time and cost overrun of over 15% is observed, takeover be
avoided. In respect of corporates, Audited financial statements (ABS) filed with ROC are to
be verified for the previous 3 years.
2. Pass sheet for a minimum period of one year in case of term loan and 6 months in case of
working capital limits of the borrower whose account is being taken over from the transferor
bank shall necessarily be obtained and verified.
3. Reasons for switch over shall be ascertained and satisfied. Shifting of accounts from banks
during last 5 years shall not be more than one occasion and gap to last switch over shall be a
minimum of 2 years. The stipulation of minimum period of 2 years of existence with other
Bank prior to takeover is dispensed with in respect of ex- canara bank customers who moved
to other banks for better rate. However, branches/ offices to ensure that while taking over of
Canara Bank
such accounts, the financials of the borrowal accounts shall continue to be satisfactory. (Cir
82/2013)
4. Sanction communication of previous banks including modifications, if any, for the last 3 years
shall be obtained and analysed/verified.
5. Wherever the Chief Executive Officer and/ or Independent Directors have resigned in one
prior year, enquiries be made in detail regarding their exit.
6. There is a need for proper assessment of limits and to secure adequate collateral comfort
while permitting substantial enhancements/fresh limits and the same need to be highlighted.
7. The collaterals offered to the previous lender shall be passed on to the Bank for the exposure
to be taken over. However, if the same cannot be insisted, the sanctioning authority may
permit acceptance of alternate securities with proper and justifiable reasons. In case of
additional exposure, Bank shall insist for additional collateral security depending upon the
merits of the case. As far as possible, dilution of security/reduction in margin should not occur
on account of take over.
8. Securities to be revalued at the time of takeover of account as per the extant guidelines and
distress sale value be ascertained.
9. Stock audit to be carried out for takeover of working capital limits, as a prerelease condition.
10. Permitting additional exposure at the time of takeover/enhancement in the limit during the
first year of takeover is delegated to next authorities. Adhoc limits can be permitted only by
the next higher authorities (upto Circle power accounts) during the first year after take over
as per extant guidelines. (145/2013)
11. As per the existing guidelines, as far as possible, take over from other banks/FIs shall not be
permitted where project undertaken is yet to be completed. However, in exceptional cases
where takeover of such project is necessitated, the same can be permitted subject to proper
and justifiable reasons and duly undertaking a fresh project appraisal by PAG, CO/HO.
12. OPL from the transferor bank shall necessarily be obtained before takeover of the loan.
Where an existing Term loan is taken over on consortium basis, an opinion letter from the
Lead Bank be obtained. Taking over of share of Lead Bank be totally avoided.
13. A certificate to effect that all the loan documents are in order be obtained from the existing
banker. Alternatively, an opinion is to be obtained from the panel advocate after
inspection/verification of the documents for ensuring that they are in order and as per the
requirement of the Bank.
14. Information to be obtained from existing banker in the format as given in HO Cir 170/2012.
In case of borrowal accounts in MSME segment, if the account is risk rated as Moderate
risk in the pre-sanction stage, the takeover can be accorded as under (469/2013)
Normal Sanctioning Power
Sanctioning Authority for takeover
Upto and including DM-CO-CAC/
DM-CO-CAC/
AGM-CO-CAC
can
permit, subject to post sanction
AGMCO-CAC /
clearance from
DGM-CO-CAC
DGM-CO-CAC
DGM-CO-CAC can permit subject to
post sanction clearance from GM-CO-
Canara Bank
CAC
DGM-CO-CAC (Circle Head)
DGM-CO-CAC (Circle Head)
GM-CO-CAC and above
GM-CO-CAC and above
In case of other than MSME moderate risk borrowal account only CGM-HO-CAC and above
authority can permit takeover.
Permitting additional exposure at the time of takeover/enhancement in the limit during the
first year of takeover can be permitted by next higher authorities.
A thorough review of taken over accounts is to be carried out. The details of taken over
accounts up to the powers of below the Circle Head be reviewed by Circle Head and those
falling under the powers of Circle Head be reviewed by HO on half yearly basis. This is in
addition to the existing system of MTR at half-yearly rest.(Cir 469/2013).
Policy guidelines for Taking Over Retail Loans from other Banks/FIs in respect of Housing
Loans, Canara Rent and Canara Mortgage Loans extended to individuals for Non business
purposes have been formulated (62/2014)
Policy on Take over of Retails loans ( 302/2014)
- Eligibility : Only to individuals for non business purposes, Personal loans, retail lending
schemes
- Satisfactory conduct for min. of 2 years
- Uncompleted projects, and repayment track record of 12 months not available not to be
taken over
- Sanctioning Authority
Normal Sanctioning Power
Sanctioning Authority for Take Over
Below Circle Head level CAC/Individual Next higher Authority/CAC
authority
Circle Head level CAC and Above
Respective CACs
For taking over from NBFC (rated by ECAI Circle Head Level CAC and above CACs
as grade of A and above)
only
- Eligible Institutions :
PSB/Pvt. Sec. Bks, NBFC rated A ECAI
- Loan Quantum : Ostensible liability with no overdues, need based additional top up loan
may be permitted satisfying eligibility norms and satisfying track record.
- Repayment : With original repayment period only, by way of SI/ECS
- Security : Fresh Valuation of securities taken by our Banks approved valuer. EMT
created within 30 days of clearance of liability by other bank
- Other Guidelines : OPL from transferor, KYC/Due diligence, Obtention of one year Pass
sheet with sanction letter, Minimum NTH, Min margin stipulations, LTV ratio to be
ensured. Loan proceeds sent to Bk/FI from whom liability taken over.
statement and godown inspection may be prescribed at quarterly intervals by concerned
sanctioning authority. But, monthly simplified stock statement to be obtained.
QOS/HOS: Applicable for parties enjoying fund & Non-fund based limits of Rs.5 crore and
above. Penal interest @1% for non submission/delayed submission from September 2009
onwards for parties enjoying WC limits of Rs.5 cr & above. (Cir 7/2010: Penal interest to be
charged on liability for the delayed period ie for entire quarter, to be collected on first day of
Canara Bank
subsequent quarter).Penal interest of 0.25% on NFB liability subject to a cap of Rs.1 Lakh
per month for parties who enjoy exclusive NFB. Where Party is enjoying FB and NFB limit,
penalty shall be 1% on FB liability and 0.25% on NFB as above shall be charged.
Submission of QOS/HOS is applicable i.r.o Agri borrowal accounts enjoying fund based
working limit of Rs.5 Crore & above.
1% Penal interest for delay in creation of EMT/II charge.
Proposals of SME Restructuring upto Rs.25 lakhs to be submitted to concerned SIR sec
CO(next higher aurhtority). Above Rs.25 lacs to SIR, CO.
Enabling Mechanism for meeting payment obligations by Large Corporates to SMEs: While
sanctioning working limits of Rs.10 cr and above to large corporate, we fix sub limit, within
the overall limit, specially for meeting payment obligations in respect of purchases made by
them from SMEs.
Commercial Real Estate Clarifications (Cir 469/2013) : Real Estate is generally defined as
an immovable asset land (earthspace) and the permanently attached improvements to it.
For an exposure to be classified as CRE, the essential feature would be that the funding will
result in the creation / acquisition of real estate (such as, office buildings to let, retail space,
multi family residential buildings, industrial or warehouse space, and hotels) where the
prospects for repayment would depend primarily on the cash flows generated by the asset.
Additionally, the prospect of recovery in the event of default would also depend primarily on
the cash flows generated from such funded asset which is taken as security, as would
generally be the case. The primary source of cashflow (i.e. more than 50% of cash flows) for
repayment would generally be lease or rental payments or the sale of the assets as also for
recovery in the event of default where such asset is taken as security.
A separate sub-sector viz., CRE-Residential Housing (CRE-RH) carved out of commercial
real estate sector. The following will be considered as CRE-RH:
Loans to builders/ developers for residential housing projects (except for captive
consumption) under CRE segment. Such projects shall ordinarily not include non-residential
commercial real estate.
Integrated housing projects comprising of some commercial space (eg. Shopping complex,
school etc.) can also be classified under CRE-RH, provided that the commercial area in the
residential project does not exceed 10% of the total Floor Space Index (FSI) of the
project.(Cir 311/2013)
While financing CRE/Specific Housing/Development Project clause to be incorporated in the
terms and conditions to disclose in pamphlets / brochures / advertisements regarding
mortgage of the property to the bank(326/2011)
Housing loans more than 2 to any person will be treated as Commercial Real estate as the
repayment will be out of rental income.
Credit Approval Committees at Circles viz., DGM-CO-CAC and GM-CO-CAC delegated with
powers to sanction Housing Loans under Commercial Real Estate (CRE) within the overall
ceiling limit(Cir 209/2013)
Exposures taken against existing commercial real estate whose prospects of repayments
primarily depend on rental/ sale proceeds of the real estate shall be classified as
Commercial Real Estate(CRE)
Canara Bank
Exposures NOT to be treated as CRE: If the repayment primarily depends on other factors
such as operating profit from business operations, quality of goods and services, tourist
arrivals etc., the exposure shall not be counted as Commercial Real Estate.
CRE exposures to the extent secured by Commercial Real Estate(CRE-Others) would
attract a risk weight of 100 per cent, CRE-RH will attract the Risk Weight of 75%. Exposure
to Equities of Real Estate Co. or Mutual Fund Co. investing in equities of CRE would attract
125% risk weight and investment in Equities of Venture Capital Funds will attract 150% risk
weight.
Loans to CRE not to be classified under MSME Sector (Ho Circular 7/2016)
Lending in respect of Special Economic Zones (SEZs) has been defined as one of the
categories eligible for classification as Infrastructure Lending.
Short Term Corporate Loan Scheme : Modified (HO Circular 331/2012)
- For Existing Customers rated upto A, or LR/NR (rating not older than 1 yr), with FB
exposure of not less than 40 cr, having satisfactory track record, Earning Cash profit, CR
Not less than 1.25:1, DER:2.5:1
- New Customers, Cr exposure by other banks/FIs not less than Rs. 50 cr, Standard Asset
- PSUs, Govt. Orgn, listed Companies and other corporate are also eligible.
- SPV/JVs rated min upto A/LR/NR, 3 years satisfactory track record, Min TNW Rs. 100
cr, cash profit last 3 years, Standard asset in lenders books.
- Secured loan maximum tenor 12 months, Rollover only once for a max. period of 6
months
- SA : CAC of Board and above
- Quantum : Need based on the cash flow on ST basis minimum amount Rs. 5 cr.
MSOD details shall be obtained from Industrial borrowers enjoyingworking capital limits of
Rs.10 lac and above apart from stockstatement.(Cir 71/2010)
Risk Weight for Asset Financing Companies : 100%
Regulatory Retail: Annual Average Turnover less than Rs.50 crores, individual loan not
exceeding Rs.5 crores, No single loan exceeding 0.2% of overall regulatory retail
portfolio.(Excluding NPA)
Risk Weight for NPAs: If provision is less than 20% of outstanding amount: Risk Weight is
150%. 100% risk weight if provision is at least 20% of outstanding and 50% risk weight if
provision is at least 50% of outstanding.
Risk weight for housing loans(Cir 311/2013, 469/2013):
Where LTV is upto 90% : Loans upto Rs.20 lacs: 50%,
above Rs. 20 lacs and upto Rs.75 lakh, LTV-80%: 50%.
Above Rs.75 lakh, LTV-75%: 75%.
In respect of Housing loans which are restructured/rescheduled, additional risk weight of
25% is to be assigned. CRE(RH):75% & CRE:100%.
If provisions reaches at least 15% of outstanding and if the NPA is fully secured by
Mortgage properties or machinery, then risk weight will be 100% only (net of specific
provisions)
EXIT POLICY: If account is graded as High Risk(other than PSUs), Sliding risk gradation by
Canara Bank
2 notches, failure of restructuring/rehabilitation efforts more than twice in a period of 3 years,

persisting gross irregularities.
Cir no.231/09: Penal interest of 2% on the outstanding liability shall be collected if the
Audited financial statement is not submitted before 31st October of every year or within a
fortnight from the date of Audit of financial accounts of the company whichever is earlier.
This shall not be applicable to PSUs / Government organizations.
Simplified format(NF1002) for credit review/ renewal of borrowal accounts upto branch
sanctioning powers or upto a limit of Rs.1.00 lac whichever is less except staff account,has
been introduced. However, individual renewal documentation shall be obtained as hitherto.
For Agril running accounts existing procedure to continue. (Cir 103/2011)
At the request of the depositors/borrower/Auditee client, confirmation of balances in deposit
and advances accounts of entities should be sent directly to the Balance Sheet auditors of
the clients.(Cir 147/2011, 167/2011)
A borrower may be an individual, HUF, Sole Proprietorship, Partnership, Limited
Liability Partnership, Limited Company, Co-operative Society or any other types of
constituents permissible under law subject to compliance of relevant formalities and on
fulfillment of Banks eligibility criteria and other loan specific terms and conditions.
In case the promoters shares have been pledged with the banks and financial
institutions as collateral during the lock-in period mandated under SEBI (Issue of capital
and disclosure requirement) regulations and the pledge is invoked during the lock-in
period by the lending institution consequent to default by the company, such shares
may be transferred to the lending institution but shall continue to be under lock-in in the
hands of the lending institution for the remaining lock-in period.
For computing
the
exposure
to
the
capital markets,
loans/advances
sanctioned and guarantees issued for capital market operations would be reckoned
with reference to sanctioned limits or outstanding, whichever is higher. However, in
the case of fully drawn term loans, where there is no scope for re-drawal of any portion
of the sanctioned limit, bank will reckon the outstanding as the exposure. Further, banks
direct investment in shares, convertible bonds, convertible debentures and units of equityoriented mutual funds would be reckoned at their cost price.
In the case of shares/convertible debentures held in securitized form, a minimum margin of
25% should be maintained.
NBFCs are prohibited from contributing capital to any partnership firm or to be partners in
partnership firms, including LLP & Association of persons.
Loans sanctioned to NBFCs for on-lending to individuals or other entities against
gold jewellery, are not eligible for classification under agriculture sector.
Similarly investments made by banks in Securitized assets originated by NBFCs,
where the underlying assets are loans against gold jewellery and purchase /
assignment of gold loan portfolio from NBFCs are also not eligible for classification under
agriculture sector.
Opening of LC and purchase/discount/negotiation of bills on without recourse
basis will not be allowed.
All such exposures with a contractual maturity of one year or less, ECAI rating for short
Canara Bank
term exposures (P 1
+, P 1, P 2
or equivalent) shall be taken into account, if
available in place of any long term rating. However, if repeated renewals are sought
which takes the contracted period in aggregate beyond 1 year, the above shall not apply
and long term rating has to be considered.
Pricing of credit linked to CRR
Under the Base Rate system rates of interest on Loans and Advances are fixed based on
Credit Risk rating of the borrower. The rates of interest to be fixed based on different
categories are as under:
Sl
Category of the Borrowers
Pricing based on
No
1
2.
3.
Exposures above Rs. 5.00 crores or average total annual ECAI rating
Turnover exceeding Rs. 50 Cr during the last 3 years
Exposures of Rs. 2.00 crores and above
Internal Rating (RAM Model)
4.
Exposures above Rs.2.00 lacs and upto Rs. 2.00 Scoring Norms
crores
Retail Lending Products of the Bank
Schematic
5.
Exposure upto Rs. 2 lakhs
ROI as advised by the bank
The Term Premium loaded to interest rates on Term Loans granted to borrowers rated
externally and internally under RAM model: For Term Loans repayable > 3 years upto 5
years, > 5 years upto 10 years and >10 years, term premium of 0.40%, 0.65% and
1.00% to be loaded respectively to the above rates additionally .(559/2015)
If the pricing of loan is based on the provisional financial statements, the Bank reserves
the right to re price the credit exposure permitted on receipt and review of audited financial
statements. This stipulation shall be made in sanction letters to the borrowers.
Rating migration analysis to be carried out annually and outcome be placed to
Credit Risk Management Committee.
In respect of unsecured advances of Rs. 1 cr and above, addl ROI of 1% be charged over
and above the applicable rate even if it exceeds the maximum rate.
Rating assignments and periodic rating review must be completed or approved by a
party that does not directly stand to benefit from the extension of credit.
Bank shall not extend finance to private builders for acquisition and development of land
including acquisition of land even as part of housing project.
Corporate Guarantee(240/2011): Branches/ offices shall obtain and evaluate the financials
of the corporate whenever corporate guarantee is stipulated in the sanction, irrespective of
the fact, the said the corporate has offered its property on EMT or not.
Branches/ offices should obtain certificate from the borrower's auditors on an annual basis
that all statutory dues, including EPF dues, have been paid by the borrower . (Cir 141/2012)
Related parties mean banks subsidiaries & affiliates, its major shareholders, directors &
senior management, and their direct & related interests, as well as any party that the bank
exerts control over or that exerts control over the bank. As per Accounting Standard 18 of
Canara Bank
ICAI, parties are considered to be related, if at any time during the reporting period, one
party has the ability to control the other party or exercise significant influence over the other
party in making financial and/or operating decisions. All credits will be granted at an arms
length basis to protect interests and to reduce the risk of improper & excessive lending to
related parties.
Securitisation Transaction - Transfer of Assets through Securitisation and Direct
Assignment of Cash Flows. The banks existing policy guidelines is on purchase of pools
from an originator (Bank/NBFC/FI). Purchase of assets through Direct Assignment of cash
flows from originating NBFCs/Banks/FIs shall be only from those rated A and above. The
Bank shall purchase portfolio with underlying assets pertaining to Agriculture, MSME, Retail
and Non priority portfolio. However, Gold Loan pools are not eligible for purchase under the
scheme. The original repayment tenor of underlying loans in the portfolio being purchased
shall normally be not more than 25 years in case of Housing loans and 15 years in case of
MSME and other priority/non priority loans. For Agri pools, extant guidelines shall apply.
Escrow mechanism for repayments pertaining to the pool in a designated account at the
advancing branch shall be ensured. CAC of the Board upto its delegated powers and
beyond by MC of the Board is the authority to permit such transactions. The pricing of the
product shall be decided by the Sanctioning authority empowered to sanction the exposure,
based on the following:
1. Rate of Interest charged to the ultimate borrower.
Yield on our advances to be optimized.
Outgo of the servicer fee to the originator shall be factored.
The existing system of submitting the credit proposals by PCBs directly to HO has been
revised and henceforth the proposals shall be routed through the respective
Circles.(Cir 469/2013)
Reimbursement under Term Loans may be permitted upto 25% of the term loan or the
quantum of investment by the borrower whichever is lower subject to fulfillment of
following conditions:
1.
The borrowers shall be rated as Low Risk/Normal Risk.
2. The reimbursement shall be made only for payments made towards plant &
machinery and not land & building or other miscellaneous fixed assets.
3. The margin as per the Term Loan sanction to be strictly adhered.
4. The reimbursement shall be claimed within 3 months from the date of purchase/1
month from the date documentation for TL sanctioned.
5. Certificate from chartered accountant as to the amount spent towards creation /
acquisition of fixed assets.
6. Original bills/invoices of the manufacturer/ supplier/ dealer shall be obtained.
7. Stamped receipt from the vendor for having received the purchase consideration in
respect of second hand items shall be obtained.
8. Wherever, obtention of financial statements is mandatory, additions made to the
fixed assets and sources of funds for the purpose are to be verified. Further, it shall
be ensured that the fixed assets created and sources of funds raised from the Bank
thereof during the financial period are accounted properly in the books of account
Canara Bank
and the relevant financial statements.

9. Availability of Adequate insurance cover for the fixed assets must be ensured.
The above may be permitted by Circle Head CAC upto Circle power accounts. In respect
of HO power accounts, respective sanctioning authority may permit such
reimbursement.
One way conversion of limits from Fund Based to Non Fund Based limits (only Letter of
Credit) may be permitted as total limits are assessed as per the norms, subject to the
following conditions.
(i) Non-fund based limits are not converted into fund-based limits
(ii) Post shipment to Preshipment is not permitted (Packing Credit to Bills and not
otherwise)
(iii) Secured limits are not to be converted into clean limits.
The conversion of limits as above and complying with the above conditions can be
permitted by DGM-CO-CAC/GM-CO-CAC (Circle Head) & above authorities upto their
respective delegated sanctioning powers subject to proper appraisal and due diligence.
Pricing review: Sanctioning authority is required to review the pricing and concessions
in the event of down gradation while reviewing the credit rating, review of pricing will not
be within the scope of MTR.
New Clause to be inserted in all agreements: "The borrower/ guarantor/ co-obligant
hereby agrees as a pre-condition for granting assistance to the borrower by the Bank
that, in case the borrower/ guarantor/ co-obligant commit default in repayment of the
loan/ advances or in the repayment of interest thereon or any of the agreed instalment
of the loan on the due date/s, the Bank and/or the Reserve Bank of India will have an
unqualified right to disclose or publish his/her/their name or the name of the company/
firm/ unit and its directors/ partners/ proprietors along with the photographs of borrower/
guarantor/ co-obligant in such manner and through such medium as the Bank or
Reserve Bank of India in their absolute discretion may think fit." (Cir 477/2013)
Appraisal Fee: Appraisal Fee to be collected on projects seeking financial assistance
from the Bank, in addition to the existing Upfront Fee.(Cir 391/2015)
a) Appraisal report strictly for Banks internal use
Project Cost
Schedule of Fees
Rs.2 Crore & above and upto 0.50% of the project cost with minimum of
Rs.10Crore
Rs.100,000/- Max. Rs. 5 lakhs
Above Rs.10 Crore and upto 0.40% of the project cost with minimum of
Rs.50Crore
Rs.5lacs Max. of Rs. 20 lacs
Above Rs.50 Cr and upto Rs.100 Cr
0.35% of the project cost with minimum of
Rs.20 lacs Max. Rs. 35 lacs
Above Rs.100 Crore
0.0.30% of the project cost with minimum of
Rs.35 lacs Max. Rs. 3 cr
b) Appraisal report to be shared
Project Cost
Schedule of Fees
Rs.2 Crore & above and upto Rs.10 1% of the project cost with minimum of
Crore
Rs.2 lac max. of Rs. 10 lacs
Canara Bank
Above Rs.10 Crore

Rs.50Crore
Above Rs.50 Crore
Rs.100 Crore
Above Rs.100 Crore
and
and
upto 0.75% of the project cost with minimum of

Rs.10 lacs; max. Rs.37.50 lacs
upto 0.60% of the project cost with minimum of
Rs.37.50 lacs; max. Rs. 60 lacs
0.50% of the project cost with minimum of
Rs.60 lacs; Max. Rs. 5 cr
The payment of appraisal fee shall be made as per the following schedule:
10% of the proposed fee to be collected along with acceptance of EoI.
Balance amount of the fees to be collected at the time of documentation for Term
Loan. If the project is found to be non viable/loan not sanctioned, the balance
amount need not be collected. In such cases, the fee already collected shall not be
refunded.
In case of (b) above, 10% of fees to be collected along with acceptance of EoI and
balance amount before release of appraisal report to the customer/other lenders.
All out of pocket expenses shall be recovered in addition to the above.
INDUSTRY OUTLOOK 2015-16 (LDGM 11/2015) Industry prospects : classification
into Low Moderate, High risks & Exposure ceilings to various industries.
INSURANCE OF SECURITIES (cir 302/2010)

In respect of advances granted to builders/ contractors/ colonizers/ township
developers etc., for undertaking large scale construction, Contractors All Risk (CAR)
or Builders All Risk (BAR) policy shall invariably be insisted upon
Transit insurance policy In the case of transit of plant/ machinery, transit insurance
with warehouse to warehouse cover
Machinery break down policy Additional risks to be covered, if any, will vary from
case to case
In case of consortium Advances, Designated Bank will have original policy and other
banks will have copies.
Electronic Equipment Insurance Policy: In case of securities like electronic
equipments, computers and its peripherals, audio and video equipments, electromedical equipments etc., a separate insurance policy viz., electronic Equipments
Insurance policy issued by General Insurance companies. This has to be obtained.
All goods stored in godown/s shall also to be covered as otherwise the Average
clause incorporated in all the fire policies will operate to the disadvantage of the
Bank in the event of a claim
It is the responsibility of the borrowers to keep the security insured. Alternatively, the
Bank can arrange insurance and charge such expenses to borrowers account in
consultation with the borrower
All securities pledged/ hypothecated against inventory limits must be insured
adequately against the following risks: ie Fire , Strike & riot, malicious damage,
terrorism, Burglary, Risk against combustion in respect of goods which are
Canara Bank
spontaneously combustible eg. Copra Natural calamities like flood, cyclone,

earthquake etc, wherever required
Canara Bank
CIBIL & CIR

(Cir 436/2014 & 497/2014, 560/2015,11/2016)
CIBIL has categorized the credit information under two groups:
(a) Consumer Accounts-Borrowal accounts in the name of Individuals
(b) Commercial Accounts- Borrowal accounts of other than Individual
The data on suit filed accounts in respect willful defaulters of Rs.25 lakh and above and
other borrowal accounts of Rs.1 Crore and above, are available in the CIBIL website which
can be accessed freely
In case of both Commercial accounts & Consumer segments, obtention of CIR is
mandatory except for following exempted categories :
Loans against our own deposit
Staff Loans.
The charges payable to CIBIL for drawing Credit Information Report (CIR) are as under:
Commercial Segment : Rs. 500/- per report + Service Tax (cir 53/2010)
The charges payable Consumer Segment ; Rs.50/- per report For 2 reports Rs. 100/- to
be recovered from the party and credit to GC Misc..
Access to own credit report: Branches have to provide the credit report obtained from
CIBIL, to borrowers, who requests for the same free of cost since the fees already
recovered from the borrower.
Drawing multiple CIRs from CICs
Guidelines for drawing CIR from multiple CICs for consumer segment are as under :
I. Secured Loans
Report from one CIC
Reports from 2 CICs
(a) Personal Segment
Limit Up to
Limits above
(i)HL
Rs.10 lacs
Rs.10 lacs
(ii) Car Loans
Rs. 5 lacs
Rs. 5 lacs
(iii) All other Secd. Loans
Rs.5 lacs
Rs. 5 lacs
Including EL
(b) MSME segment
Rs. 10 lacs
Rs. 10 lacs
(c) Agri. Segment
Rs. 3 lacs
Rs. 3 lacs
(d) All other loans
Rs.10 lacs
Rs.10 lacs
II. Unsecured Loans
(a) Personal Segment
(i) Personal Loans
Rs.1 lac
Rs.1 lac
(ii) EL
Rs.4 lac
Rs.4 lacs
(iii) Other loans
Rs.3 lacs
Rs.3 lacs
(b) MSME segment
Rs. 2 lacs
Rs. 2 lacs
(c) Agri. Segment
Rs. 1 lac
Rs. 1 la c
(d) All other loans
Rs. 5 lacs
Rs. 5 lacs
-
Modalities on obtention CIR from multiple CICs viz., M/s. Equifax Credit Information
Services Pvt. Ltd., (ECIS), M/s. CRIF High Mark Credit Information Services Pvt. Ltd
(CRIF-HMCIS), M/s. Experian Credit Information Company India Pvt Ltd. (ECICI).
Canara Bank
Credit Scoring Norms applicable only for consumer segments and not for commercial
segments. If the credit scores of beneficial owners are below the benchmark level, the
respective sanctioning authority has to take credit decisions after making necessary
enquiry. Wherever personal guarantee is stipulated, if the score of the proposed
guarantor is less than the prescribed level, the respective SA shall take credit decision
on acceptance of PG. The credit scores of the BO shall not be reckoned solely for
accepting or rejecting a credit proposal but shall be utilized as a reference for further
credit investigation on the credit worthiness of the entity.
- CIBIL Report, three scores are being given viz., Trans union Score Version-1, Transunion Version2 and personal score. Trans- union Version 2 score shall be reckoned.
- Credit Score of applicant and co-applicant shall be taken into consideration for assigning
risk grade. In case of variation in the scores of the applicant or co-applicant, the lowest
of the three digit scores among all the CIRs obtained shall be taken as basis for
assigning risk grade.
- Wherever one CIR is required to be drawn, the same shall be drawn from CIBIL
- Wherever two CIRs are required to be drawn, CIR shall be drawn from CIBIL and
another CIR from any one of the other CICs.
- Delegation of powers based on Risk Grades, i.e., Credit Scores (CS)
CS:1=LR, CS:2=Fair Risk, CS:3=NR- Respective SA can sanction fresh, addl,
enhancement in limits.
CS:4= MR : Upto delegated powers of DGM CO CAC (Other than Circle Head CAC);
NHA. CO head CAC and above authorities: Respective SA
CS:5= High Risk, Circle Head CAC and above authorities, subject to ensuring suitable
risk mitigants are in place.
- In respect of following, though CIR is to be mandatorily obtained, respective SA can
consider the proposal irrespective of Risk Grade:
i) Renewal of existing facilities
ii) Government Sponsored Schemes with aggregate loan quantum upto and including Rs. 2
lacs to a borrower
iii) DIR loans
iv) Agricultural advances upto and including Rs3 lacs in aggregate to a borrower/individual
v) Loans against our OwnDeposits/ approved securities
vi) Canara Pension
vii) Gold Loans
viii) Education Loans
ix) Fully secured loans upto and including Rs. 2 lac under Non priority sector in aggregate
to a borrower/individual.
Wherever sufficiently long Credit History is not available , the CICs are allotting a two
digit score or risk index is displayed in the report. In such cases, suitable credit decision
shall be taken and the loans shall be sanctioned based on normal credit sanctioning
powers as per DOP (268/2014), based on merits.
In case CIR is not available, the processing section/branch can proceed with the
Canara Bank
appraisal process duly mentioning non availability of CIR details of the proposed
borrower and keep a record of such failure in CIR generation along with the loan papers.
The Credit investigation in terms of extant guidelines shall continue to play an important
role in verification of bonafides/credit worthiness of the borrower.
CREDIT INFORMATION REPORT FROM CIBIL FOR CREDIT CARDS (Cir 136/2011)
At the time of fresh issue of Credit Card:
Where the branches are required to draw CIR for their Borrower customers (Commercial
and Consumer Segments) the branches certify about the satisfactory CIR while forwarding
the application.
Exemptions:
Cards issued to our Bank Staff are exempted from drawing CIR from CIBIL
CREDIT CARD OVERDUES(Cir 02/2013)
Branches/ offices need not take into cognizance of defaults upto Rs.5000/- .
On a selective basis, need based credit facilities can be considered by respective
sanctioning authorities wherever overdues are below Rs.25000/- and beyond that
subject to prior clearance by the next higher authority in cases where the applicant's
Credit Information Reports (CIRs) show overdue liabilities under written off/ settled
status in respect of credit cards dues.
CREDIT INFORMATION REPORTS (CIRs) (Ref.Cir. - 560/2015)

Credit Information Companies apart from CIBIL(http://www.cibil.com):
a) M/s CRIF High Mark Credit Information Services Pvt Ltd ( CRIF)
b) M/s Equifax Credit Information Services Pvt Ltd ( ECIS)
c) M/s Experian Credit Information Company India Private Ltd.
(ECICI)(www.experian.in) Score of the Various Credit Information Companies.
Risk
CIBIL
Equifax
Experian
CRIF
Risk
Delegation*
Grade Description
900-750
900-742
900-800
750-720
CS : 1 Low Risk
RSA
750-700
742-719
799-700
720-694
CS : 2 Fair Risk
RSA
700-650
719-708
699-600
694-664
CS : 3 Normal Risk RSA
650-590
708-674
599-550
664-652
CS : 4 Moderat
Upto DGM
CO-NHA
e Risk
Circle head CACRSA
less than
less than less
less than CS : 5 High Risk
Circle Head &
590
674
than
652
Above
550
CS = Credit Score
SAFE KEEPING OF MORTGAGE PAPERS(Cir 10/2013)
Balancing of mortgage papers once in a half year i.e., as on 20th of February and
August every year and also during RBIA.
Canara Bank
Maintenance of a key register for recording day-to-day inward / outward entries

pertaining to mortgage papers.
Certification by branch/rah officials for availability of all mortgage papers.
Confirmation on balancing of mortgage papers is to be given in PRR 18 for the month of
February and August every year.
Inspecting officers shall verify the balancing taken during RBIA for availability of
mortgage papers and countersign the certificate.
Staff accountability will be fixed for missing of mortgage papers.
Unavailed Limits- Incorporation of clause of Unconditionally cancellable credit (UCC) LDGM

12/2015 & 14/2015:
-Unavailed credit limits to be assigned Credit Conversion Factor of 20% and 50% depending
upon the maturity of facilities. Hence, advised to incorporate the following clause while
conveying sanction to the borrowers:
Notwithstanding anything contained hereinabove, the bank at any time reserves the absolete
right to cancel the limits either fully or partially, unconditionally without prior notice:
a) In casethe limits/part of the limits are not utilized
b) In case deterioration in the loan accounts in any manner whatsoever
c) In case of non-compliance of Terms and conditions of sanction
To the above effect, loan documents have also been modified to introduce the above effect.
Unconditional cancellation of limits to be recorded in FCR under BA020 -> Loan /sanction
details- Unconditionally cancellable credit : Yes/No
FCC: Under Limit Maintenance, limits, press F7 and Enter customer ID, press F8, unloack the
contract, go to UDF (16th button from left) Enter the relevant details in appropriate columns i.e.,
UNCOND-Cancelabl-CR; Uncond-Cancelable-Amt; and Uncond-cancelbl-REMA. Save contract
and get it authorized.
Canara Bank
QUESTIONS
1.
The objectives of Credit Risk Management Policy are: (a) Ensuring credit
growth both qualitatively & quantitatively (b) Optimum dispersal of Risk (c)
Adherence to regulatory prudential norms (d) Adequately pricing various risks in credit
exposures (e) All the above
All the above
2. Bank finance to factoring companies to those factoring companies they derive at least
percent of their income from factoring activity:
50% (Changed from 75%)
3. Borrowers having sales turnover of over R s . _ _ _
crores
shall
disclose Ageing
Schedule of their over dues payables in their periodical returns/ statements submitted
to Bank:
Rs. 50 crores
4.
In case of consortium advances, what is the minimum prescribed share of member

banks in fund based limits to ensure meaningful participation:
10% (lower share may be accepted in deserving cases)
5. Under prudential exposure limit for individual Non Corporate Borrowers What is
the maximum credit facilities that can be sanctioned to Partnership Concerns:
Rs. 75 crores (Individual borrowers - Rs 10 crores, Proprietorship - Rs 50 crores,
Single entity with constitution as Society & Trust Rs.75 crores, Single entity with
constitution as Trust/Society for Educational Institutions and Hospitals Rs.100
crores
6. Total exposure to Real Estate Sector should not exceed
and
Exposure to Commercial Real Estate should not exceed
20% (Real Estate) and 5 (Commercial Real Estate)
% of the Gross Credit

% of Gross Credit :
7. What is the maximum amount of loan/advance against Shares & Debentures etc
to individuals:
Rs. 20 lakhs if the securities are held in demat form and Rs. 10 lakhs for
physical scrips
8. In respect of direct lending to Banks, lending to private sector banks and non- prime
foreign banks, bank shall provide credit facilities provided the borrowing bank having
a Tangible Net worth of Rs.
crores and above:
Rs. 1000 crores
9. Short Term Corporate Loan scheme is a credit facility in the form of short term
Canara Bank
loans to Corporates, PSUs etc. This can be sanctioned for a maximum period of
12 months
10. Short T e r m C o r p o r a t e L o a n s
(STCLs) shall be availed within
maximum period of _______from the date of sanction and not more than
trenches (cir 331/2012)
Three month, 3
11. In case of Low Risk Rated 1 accounts, what is the time schedule for fixing Working
Capital Limits:
18 months (LR 2&3: 15 Months, Normal, Moderate & HR-12 Months, Gold card exp-2
years)
12. Loan System for Delivery of Bank Credit is applicable in case of Borrowers enjoying
fund based working capital limits of Rs and above:
Rs. 10 crores and above
13. Medium Term Loans with repayment above
Year/s:
1 Year, 3 years
year/s and upto
14. All L o n g a n d M e d i u m Term Loan proposals for proposed projects of Rs --------and above in respect of new borrowers and Rs -------------------and above in case of
existing constituents of Bank going for expansion shall be accompanied with Project
Appraisal report prepared by Project Appraisal Group at HO or PACells at CO etc.
Rs. 200 lacs and above new projects and Rs. 500 lacs and above existing borrowers
15. Credit Audit System is applicable for accounts with aggregate limits of Rs
Rs. 1 crore and above
16. All borrowal accounts with limits of Rs
Credit Monitoring Officers:
Rs. 1 crore
and
above
shall
and above:
be monitored by
17. Normally, Stock Audit is to be conducted once in a year in case of Standard and
Sub Standard Accounts. (WC limits). What is the cut off limit for conducting stock audit in
case of Low Risk Accounts:
Rs. 5 crores for Low Risk Accounts
Canara Bank
18. If the account is downgraded by 2 notches while doing Credit Risk Rating which of
the following is to be undertaken? A) Stock audit is to be conducted immediately
with in a period of 3 months B) A review note shall be placed to the sanctioning authority
within one month of such down gradation and a review of pricing shall be carried out C)
Bank would explore exiting as per its exit policy.; D)Only A & B ; E) All the above.
E) All the above.
Explanation: In case of WC limits, whenever internal credit risk ratings
are downgraded/down gradation in ECAI rating by one notch, a review
note shall be placed to the sanctioning authority within one month of
such down gradation and a review of pricing shall be carried out
and the asset shall be accordingly repriced with the approval of
sanctioning authority duly informing the borrower.
19. Rejection of Export Credit Proposals shall be immediately reported to:
C&MD
20. Valuation of Properties (Land and Building) of Rs
empanelled valuers.
will
be
done
by
21. What is the prescribed depreciation per annum in case of Plant & Machinery:
15% (Building 5%, vehicle 20%)
22. Special Watch category borrowal accounts are divided into
categories:
5 categories (A category upto 1 lac, B category >1-5 lac, C category >5 lac- 25
lac, D category > 25 <100 lac, E category =/ > 1 crore.)
23. What is the prescribed Debt Equity Ratio in case of Term Loans
and operating Heavy Commercial vehicles / Light Commercial Vehicles:
Not more than 3:1 ( can be relaxed up to 4:1)
for
acquiring
24. What is the DE Ratio prescribed for Projects under Infrastructure Financing:
2:1 upto 3:1 (in exceptional cases 4:1 may be accepted by sanctioning
authority, not less than DGM, CO CAC (Circle Head))
25. Agricultural Term Loans of Rs.
and above are required to
by Agricultural Consultancy Services(ACS, HO):
Rs. 100/200 lakhs (new/Existing)
be appraised
26. What is the DSCR prescribed for Transport Operators

Not less than 1.5
27. Branches have to adopt National Building Code (NBC) 2005 in respect of loans for
construction of building exceeding Rs.
Canara Bank
Rs . 25 crores
28. Time norms for sanction of Export Credit - Other than Gold card schemes
Fresh Sanction/Enhancement of limits (Cir 310/2011:
30 days (branch sanctions) 45 days for CO/HO Sanctions,
Renewal-30, Adhoc- 15 days
29. In case of takeover of borrowal accounts, what is the prescribed Debt Equity Ratio :
Not more than 2:1 (2.5: 1 by sanctioning authority selectively)
30. QOS/HOS is applicable for borrowers enjoying WORKING CAPITAL limits of Rs
and above:
Rs. 5 crore
31. Commitment Charges @
% p.a. on t h e committed
line of credit and
or unutilised / unavailed sanctioned WC limits or ST limit for WC purposes and also
TL(Limited Companies), applicable for limits of Rs.
and above (cir 433/2010)
1%,
32. What is prepayment penalty stipulated for prepayment of loan by way of takeover
of accounts by other banks/FIs.
2% of outstanding liability(No PP for floating HL & all floating rate TLs sanctioned to
individual borrowers HO 239/2015)
33. Holding on operations are permitted in which type of accounts:
Non LPD NPA accounts, Sick Units, BIFR & CDR Accounts.
34. What is the working capital in Turnover method of lending? (a) 20% of the projected
sales by the party (b) 20% of the projected sales accepted by the Bank (c) 25% of the
projected sales accepted by the Bank
(c) WC is 25% of the projected sales accepted by the Bank & WC finance will be 20%
35. Flexible structuring is applicable to :
a) Restructuring proposals (b) SDR
(c) CDR (d) Infrastructure projects and Core industries
sector (numbering 8: i.e., Production of Coal, Crude Oil, Natural Gas, Petroleum Refinery,
Fertilisers, Steel {alloy + Non-alloy}, Cement, Electricity generation.
(d) Infra and Core Industries.
36. Duration of Credit Limits for Canara Trade is:
2 years
37. The total fund based and non fund based limits that can be sanctioned to
Construction Companies shall not exceed :
9 times of their Net Owned Funds (can be relaxed selectively for low risk
Canara Bank
a ccounts by GM(HO) and above authorities

38. Finance extended by discounting Service Sector bills is treated as:
Unsecured Advance
39. The ceiling on number of banks in consortium arrangement is:
No Ceiling
40. In consortium Advances, the time period for which the credit limits are accessed is:
For 2 yearly but release of limits is on yearly basis.
41. Lead Manager/ Mandated Bank is a term used in:
Loan Syndication
42. If we are lending to a borrower against the guarantee of another bank, the
guarantee issuing bank shall have a minimum fund based exposure of:
10% of the guaranteed amount
43. For issuing guarantees on behalf of our customers in favour of other banks/FIs/
other lending institutions for the loans extended by the latter, the minimum amount of
guarantee shall be:
Rs. 1 crore
44. Present Base rate of our bank is
9.65% (cir 483/2015)
45. ROI for ECNOS will be % at present. (Cir.668/2013)
14.65% (i.e., BR + 500 bps)
46. Advances that are eligible for Mid Term Review are:
AGM/ AGM CAC Powers and above advances
47. Number of Grades in Asset Sub-Classification Code System are:
9 (Standard 4, SS, DA-3,LOSS)
48. Periodicity of Valuation of Fixed Asset is:
Once in 3 years (including Canara Trade as per cir 102/2011)
49. Loans granted for setting up of Special Economic Zones shall be treated as:
Infrastructure Lending (SEZ loans for exposure purpose treated as
Infrastructure. For Risk Weight purpose it is Commercial Real estate)
50. Fair Practice Code is applicable to:
Canara Bank
All Loans and advances irrespective of loan amount

51. Maximum time permitted for availing Working Capital Limits is:
3 months from the date of sanction
52. Which o f the fol l o w i n g are d e c l a r e d a s t h e N o n -thrust areas in o u r
Credit Risk Management Policy? (a) Commercial Real Estate, (b) NBFCs, (c) Capital
Market, (d) industries/sectors which do not have growth potentials (d) All the above.
(d) All the above.
53. Finance under ESOP to employees for purchasing
companies is made upto
shares with maximum of Rs.
90%, 20 lakhs
shares of their
own
% of purchase price of the
54. Bank shall not hold shares in any company whether as pledgee, mortgagee or
as absolute owner of an amount exceeding
% of paid up share capital of the
company or % of its paid up capital and reserves:
30%, 30% (Sec 19(2) of BR Act)
55. The ROI on exposures other than retail loans above Rs. 2 lakhs upto Rs 2 crores to be
based on the
norms
Scoring Norms
56. In respect of accounts where the Current Ratio is less than prescribed norms,
Quarterly Cash flow statement shall be called for to monitor the accounts wherever the
exposure of the Bank is Rs.and above:
Rs 50 crores
57. Maximum period of Extension of Limits that may be permitted is
months:
4 months - not exceeding 3 months at a time (High Risk Rated Accounts,
only one extension for 2 months only)
58. DSCR requirements in case of CRE shall be: (a) No stipulation (b) 1.75
Exception) (d) 2
(c) 1.5 (1.25
(c) 1.50/1.25 exception by SA, (239/2015)

59. Banks can finance to Housing Finance Companies (HFCs) which are regulated
by National Housing Bank (NHB). Total borrowings in respect of HFCs are restricted to
times of their Net Owned Funds by NHB.
16 times
60. What is the maximum period of Standby LC (which is similar to Financial Guarantee)
Canara Bank
One Year
61. In case of Infrastructure Lending, RBI has recently permitted Banks to treat
Annuities under build-operate-transfer (BOT) model in respect of road, highway
projects and toll collection rights as:
Tangible Securities (subject to the condition that Bank s right to receive annuities
and toll collection rights is legally enforceable and irrevocable)
62. Risk categorization of accounts of bullion dealers (including sub-dealers) & jewellers
:to be classified as and has to be subjected to enhanced due diligence (cir 6/2011)
HIGH RISK
63. Bank s exposure to Indian Joint Ventures/Wholly owned subsidiaries abroad and
Overseas step down subsidiaries of Indian Corporate will be restricted to a limit of
%
of Banks unimpaired Capital funds.
20%
64. Repayment Period for Infrastructure Loans: Not exceeding
excluding
moratorium.
In exceptional cases where the project calls for longer repayment tenure due to inherent
nature of project the appropriate repayment period can be accepted upto
Permission from MC and further reporting to the Board.
15 years // 20 years
65. During the first year after takeover, if any enhancement in the limit is to be
considered, the proposal can be permitted only by:
Circle Head and above authorities
66. For delayed/non submission of QOS/HOS statements, what is the penal interest
applicable:
1% on FB and 0.25% on NFB
67. If audited Financial statements are not submitted before 31st
October every
year or within a fortnight of adoption of accounts of the borrower, which ever is earlier,
what is the penalty:
2% penal interest on outstanding liability
68. IRR as a project parameter is applicable to Term Loans :
(a) Long Term Loans (b) Medium Term Loans (c) All Term Loans with Project cost of Rs.
25 cr and above
(c) All Term Loans with Project cost of Rs. 25 cr and above
69. Base rate not applicable to the following categories of loans that could be
priced without reference to the Base Rate: (a) DRI advances; (b) Loans to banks' own
Canara Bank
employees; (c) Loans to banks' depositors against their own deposits d) Restructured
Loans e) Loans where interest subsidy is applicable (f)Loans to Solar applications
under Jawaharlal Nehru National Solar Mission (g) All the above.
(g) All the above. (559/2015)
70. Base Rate shall include all those elements of the lending rates that are common
across all categories of borrowers. They are (a) Cost of Deposit or Funds (b) Negative
Carry on SLR/CRR (c) Un-allocatable Overhead Cost (d) Average Return on Net Worth.
(e) All the above.
(e) All the above.
71. A corporate would be eligible to issue Commercial Paper provided the tangible net
worth of the company, as per the latest audited balance sheet, is not less than R s.
______; Company has been sanctioned working capital limit by bank/s or AllIndia Financial Institution/s; and Minimum credit rating shall be
or
such equivalent rating by other agencies. (LDGM 13/2010)
4 crore, P-2 of CRISIL
72. While sanctioning loans to Limited Liability Partnership, the sanction shall contain a
clause to the effect that in the event of number of partners of LLP falling below ,the
Bank shall reserve its right to suspend the limits sanctioned to LLP.(cir 67/2011)
TWO
73. Project appraisal is to be done by PAC of Circles headed by CGM /GM is based on ------Upto ----------------Project Cost, Rs. 100 cr
74. Project appraisal by PAC, DGM Headed Circles

Project cost upto Rs. 50 cr.
75. Project appraisal by PAG, HO
(a) HO Power accounts
(b)Project Cost beyond Rs. 50 cr/Rs. 100 cr., In case of intricacies in Project, below the
stipulated ceiling, with permission from GM CCW, HO
Canara Bank
CHAPTER 2
DELEGATION OF POWERS
(Cir no.268/2014 & 422/2014,
238/2015, 379/2015)
Our Bank has formed a Credit Approval Committee of the Board in terms of the directives of
the Department of Financial Services, Ministry of Finance, Govt. of India. The Credit
Approval Committee shall exercise the powers with regard to credit proposals upto Rs 400
crores. Proposals above Rs. 400 crores shall be placed before Management Committee of
the Board.
Bank has introduced determination of credit sanctioning powers of various sanctioning
authorities :
- based on the internal credit risk rating grades of the borrowers. Further, where
borrowers are not individually rated internally, the delegated powers as indicated under
Moderate Risk is to be applied.
- Withdrawal of credit sanctioning powers of individual authorities beyond
branch/RAH/CPUs level and formation of CACs
- Maximum delegated powers to various CACs at HO/CO/Individual authority at branches
Sl.No. CAC/Branch
Max. DOP
(Rs. In cr)
1.
CAC of Board
400.00
2.
ED CAC
100.00
3.
CGM/GM HO CAC
75.00
4.
CGM CO CAC
75.00
5.
GM CO CAC
60.00
6.
DGM CO CAC/SME sulabhs DGM CAC
35.00
7.
AGM-CAC at Circles/SME Sulabhs
15.00
8.
DM CAC at Circles/SME Sulabhs
5.00
AT BRANCH:
1.DGM (Other than PCB)
5.00
2. AGM
5.00
3. Chief Manager
3.00
4. Senior Manager in ELB/VLB
0.75
Manager in case of Large branch
Manager/Sr. Magr in specialized branches viz
SME/Overaseas, IF, AF
5.Manager incharge of Medium br/Cr Mgr VLB/ELB
0.50
6. Manager in charge of Small branch
0.25
For Group : twice the normal sanction powers.
No authority is empowered to sanction loans/advances to new clients rated High Risk.
Two categories only: Secured Advances & Clean Advances
Regular credit facility & Adhoc credit facility
Canara Bank
Unsecured exposure is defined by the RBI as an exposure where the Realizable value of
the tangible security as assessed by the Bank/approved valuers/RBI inspecting officers, is
not more than 10%, ab initio. This definition shall be used for the purpose of classifying and
reporting of unsecured advances.
Where both Internal and external ratings are available, pricing shall be based on current
ECAI rating.
Substantial/ Beneficial interest :
- in company: Holding 10% of paid up capital or exceeding Rs.5 lakhs
- In Firm : interest held by an individual/his spouse/minor child :singly/jointly > 10% of
total capital subscribed by all partners.
Group : Commanality management and effective control on management shall be the

basis for determining the group.
All Electricity companies in the same state are treated as one group
Exposure to JVs floated by parent orgn and SPVs shall also be brought under
group exposure
PSUs single borrower limit will be applicable.
Wherever delegation is linked to respective risk rating grade, such rating awarded shall not
be older than 15 months.
While considering Estate Purchase Loans, first we grant DPN and subsequently convert it
as Estate purchase loan by putting through EMT within 45 days.
Categorisation of branches(cir 43/09):
Small Total business upto Rs.5 cr. Heading: SC-I 4 years experience
Medium - > Rs.5cr. Upto Rs.25 cr.- Heading Scale II
Large - > Rs. 25 cr and upto Rs.75 cr.(with min Rs.10 cr advances) Scale III
Very large: > Rs.75 cr upto Rs.250 cr.(with min. Rs.25 cr advances)- Scale IV
Exceptionally large: Above Rs.250cr. Upto Rs.1000cr with min.adv. Rs.100 cr., SC V
Premier Branch: Above Rs.1000 crores with min.adv. Rs.750 crores. Scale VI.
Authority in higher scale heading the branch than stipulated can exercise sanctioning
powers to delegated to designated authority only with specific permission of C & M D of
Bank. Till such time sanctioning powers normally delegated to branch category can only be
exercised. Similar is lthe case in respect of Circle Heads.
Recategorisation of branch to lower category, till higher designated official is withdrawn,
he/she shall continue to exercise the credit sanctioning powers delegated to him/her.
Higher authority can sanction loans/advances that fall under sanctioning powers of lower
authority (only with compelling reasons justifications- and the same subjected to review )
DOP as prevailing on the date of sanction. Consequent upon revision in DOP, facilities
earlier permitted by a higher authority fall under revised sanctioning powers of lower
authority, follow of such accounts and further sanctions as per revised DOP.
Canara Bank
DOP for sub-limits like book debts etc., are to be adhered to. Any sanction beyond the
powers of Sanctioning authority as per sub limit is to be placed before next authority, even if
the main limit falls under lower authority.
No loans and advances to Companies/promoters/others to finance promoters
quota/acquisition of shares for controlling interest except to the extent provided in HO Cir
102/98
Authorities below CGM/GM HO CAC do not have powers to sanction loans/advances to
NBFCs (Leasing, HP Asset Financing). MFI engaged in micro finance activities, housing
finance companies
Permitting exclusive WC limits to Agro Processing units and EOUs under Agri. Sector, the
respective authorities to exercise sanctioning powers delegated for financing non agri.
Sector i.,e., general/export credit as applicable.
Advances against duty drawback entitlement are to be treated as Clean and DOP as
applicable to clean advances.
FCLRs : ED CAC and above authorities are empowered to permit upto their respective
delegated powers both fresh as well as by earmarking the existing FB rupee limit.
Circle Head CAC are empowered to consider conversion of existing RTL into FCLR-TLs, if
such loans are within their delegated powers subject to adhering to the extant guidelines.
For EL and Premises Loan (to owners of premises to be taken on lease by Bank) DOP as
applicable to Term Loans.
All proposals including telephonic sanctions shall be reported/recorded through Web Based
Package NB 139.
Loans to Relatives of Our Bank Directors, Directors of Other Banks/ our Subsidiaries etc:
Upto Rs.25 lakhs: sanction by sanctioning authority, but report to Board of Directors. Above
Rs.25 lakhs : Sanction by Management Committee/Board of Directors.
Bank may grant loans and advances to spouses of the Directors of the Bank in cases where
the spouse has his/her own independent source of income arising out of his/her employment
or profession and the facility so granted is based on standard procedures and norms for
assessing credit worthiness of the borrower. Such facility shall be extended on commercial
terms.(Cir 469/2013)
Branches can sanction Gold Loans to Close Relatives of our Employees, upto Rs.20,000/only within their delegated powers.
Higher amount of delegation i.r.o. export facilities shall be reckoned exclusively for export
facilities.
No restrictions on credit sanctions by CACs where any member/s including the Chair person
of committee is /are retiring in the next 3 months.
For issuance of LCs and Inland BGs backed by 100% cash margin/TDs and FLCs backed
by 110% cash margin/TDs: Scale IV and above authorities full powers
Upto Scale III: as per Delegated powers
ED CAC is empowers to permit the branches to issue FLCs on behalf of
PSUs/internally/Externally better rated Cos. With 100% cash/TD margin.
New Borrower Clients where Current Ratio is less than 1: Only in exceptional cases and the
Canara Bank
sanction by GM /CGM(HO-CAC) only. In case of Existing borrowers, of CGM/GM-CO-CAC

and
above
authorities,
respective
Sanctioning
authorities
can
permit
renewal/enhancement/addl. Limits. Accounts below CGM/GM-CO-CAC, respective SA can
permit renewal/enhancement addl limits, subject to clearance from NHA prior to conveying
sanction.
The Manager/Senior Manger cannot issue Bank Guarantees for period of more than 2
years, except with 100% margin. Not more than 10years even with 100% cash margin.
Whenever any officer / manager officiates in higher posts on account of leave/training of
permanent incumbent, the officer officiating shall exercise powers conferred on that higher
post. But such sanctions shall be placed before the permanent incumbent for information
after he resumes the office.
Loans / advances to close relatives of existing individual borrowers: All proposals of close
relatives (Other than relating to credit sanctions classified under Agricultural sector and
Personal (Retail) loans) shall be placed before the next higher authority for sanction.
Renewal without enhancement can be sanctioned by respective sanctioning authorities, if
on previous occasion; sanction was accorded by next higher authority. Such renewal with
enhancement in the limit shall be subject to clearance from the next higher authority.
" Whether any of your close relative/s have availed any other loan facility from our Bank
YES/NO
If yes, the details are as below:
Branch from
Name of the Relationship Nature
Limit
where loan
close
with applicant of
Quantum
relative/s
**
loan
availed
** close relatives: (a) Father; (b) Mother; (c) Spouse; (d) Brother; (e) Sister; (f) son; (g) Daughter
In case of Agricultural advances, concerned authority can sanction.
Third party property taken as collateral security for new parties: For new borrowal accounts:
If mortgage of third party property is accepted as security for lending there against, prior
clearance shall be obtained from next higher authority a CO/HO before conveying the
sanction, unless otherwise specified under specific scheme guidelines. This shall be
applicable in respect of sanctioning powers below the delegated powers of circle head level
CAC i.e. DGM/GMCO-CAC. For proposals falling under the delegated powers of DGM-COCAC (Circle Head) and above authorities, the respective sanctioning authority may permit
the same.
Prior clearance from the next higher authority need not be obtained for accepting security
standing in the name of close relatives, i.e., spouse, son, unmarried daughter, father,
mother, brother and unmarried sister of the borrower for all types of loans/advances subject
to ensuring that disbursement should be done after putting thro EMT in respect of loans to
individuals. This does not apply in case of relatives of partners/directors.
Issue of solvency certificate: upto Rs.1 lakh: declared net worth of client. > Rs. 1 lac up to
Rs. 5 lakh: Unaudited Fin. Statements;Above 5 lakhs: Audited financial statements
Standby credit to SME: Upto 20% (LR & NR) (and 10% in MR ) of delegated powers or
sanctioned limit whichever is lower. Standby credit for Export Credit: 10% of sanctioned
Canara Bank
limit or delegated powers whichever is lower only to Export units under LR or ASCC S1/S2.
Exporters Gold Card Scheme Stand by credit 20% of assessed limit additionally may be
made available to facilitate urgent credit needs for execution of sudden orders..
TOD in SB:CM/DM: Rs.10,000/- . Upto Scale III : No Powers to sanction TOD in SB/CA.
Secured Adhoc facility: (398/2015)
- 20% of sanctioned secured limit/20% of delegated powers for that limit whichever is less.
- Clean Adhoc: 5% of sanction secured limits/5% of delegated limit for sanction of clean
facility whichever is less upto DGM/DGM CAC powers. GM CAC powers and above:
10% of sanctioned secured limit or 10% of delegated limit for clean facility whichever is
lower.
- Adhoc credit facility can be permitted for maximum period of 90 days only.
- Adhoc credit facility/ adhoc over limit shall not be permitted in Restructured accounts.
- No adhoc credit facility can be permitted in any account more than 2 occasions in a year.
- Regular limit should be in force, ABS not older than 15 months, No overdues in account
- Documentation: Adhoc facility permitted for >30 days secured or >15 days clean,
documentation to be done
- Pricing: 2% beyond the pricing stipulated for regular limit.
- Standard Asset and not risk rated as High Risk, no for restructured account.
Adhoc Overlimit
(Cir: 398/2015)
To meet exigencies of borrowers, the authorities may be required to permit credit facilities
for very short duration viz., Adhoc Overlimit.
Period not more than 10 days in a row or upto 15 days for broken period in a month within
the maximum delegated powers for adhoc credit facility.
Adhoc overlimit facilities over the sanctioned limits to existing borrowers upto 10% of the
sanctioned limit provided the total of such adhoc over limit is restricted to:
CM/ DM
AGM :
DGM
Rs.25 lacs
Rs.75 lacs
Rs.100 lacs
GM/CGM
ED
C&MD
Rs.150 lacs
Rs.500 lacs
Rs.1000 lacs
Other conditions for Adhoc over limit:

Maximum period permissible : 10 days in a row or upto 15 days for broken period in a month
Security: The facility should be adequately secured
Asset status: Standard and not rated High risk
Regular limit: To be in force and no overdues
The adhoc overlimit as above shall be within the permissible limit delegated for adhoc credit
facility.
Reporting & Periodicity: The reporting formats on adhoc overlimits as advised in Annexures
to this circular shall be submitted on fortnightly basis i.e. as on 15th and last day of the
month.
To facilitate effective monitoring of adhoc over limit, a BO report (Code 280113) is provided
Canara Bank
with the details of the adhoc over limit permitted.

Adhoc credit facility/ adhoc over limit shall not be permitted in Restructured accounts.
No adhoc credit facility can be permitted in any account more than 2 occasions in a year.(Cir
352/2012)
Concession in ROI in respect of loans and advances excluding VSL, Retail, can be
permitted by CGM/GM-HOCAC (LR: max. reduction 1.50% subject to min. ROI BR+1.75%l
NR: Max. reduction 1.25% subject to BR+2.00; MR Max. reduction 1% subject to min ROI
BR+2.25%) and above authorities (ED CAC:LR- max reduction 2% subject to min. ROI
BR+1.50%; NR max. reduction 1.75% subject to min ROI BR+1.75%; MR max. reduction
1.50% subject to min ROI BR+2%) (CAC-Board : LR & NR upto Base Rate; MR max.
reduction 2% subject to min ROI BR+1.50%).
- Concession in ROI for Retail Lending Schemes:
CGM/GM HO CAC max. reduction of 1% from applicable rate subject to ultimate lending
rate not falling below BR+2.50%,
ED CAC max. reduction 2% fm applicable rate subject to ROI not falling below
BR+1.50%
CAC-Board : subject to ultimate ROI not falling below BR+0.50%
-
Concession in ROI for VSL/OD against our Deposits :

CGM/CO/CAC/GM-CO-CAC/DGM CO CAC: reduction upto 1% over the deposit rate
ED CAC reduction upto 0.75% over the deposit rate
CAC Board Reduction in ROI beyong delegated powers of ED
Loans in INR against FCNR TDs:
ED CAC Reduction in ROI upto 1% on applicable rate
Loan against FCNR in FC not eligible for interest concession.
Authority to permit exemption from ECAI Rating: ED CAC
SANCTIONING POWERS RETAIL LOANS :

Retail Hub(HL):Head of RAH:Rs.200 lacs, AGM/CM:100 lacs, SM:30 lacs, Mgr:20 lacs
Canara Budget:
- Branch heads, Cr Mgrs/Sr MgrsVLBs: 6 months Gross sal max. 3 lacs
- CM : 10 months Gross,, max. Rs. 5 lacs
- AGM/AGM CAC: 10 months gross/max. Rs. 6 lacs
- DGM/DGM CAC: 15 months gross max. 8 lacs
- CGM/GM CO CAC: 15 months gross max. 10 lacs
- GM/CGM HO CAC 15 months gross and above Rs. 10 lacs
Canara Trade :
- Manager in charge of small branch
: Rs. 10 lacs
- Manager in charge of Medium branch, Cr Mgr VLB/ELB: Rs.20 lacs
- Manager in charge of Large branch/Sr Mgr in VLB/ELB : Rs. 30 lacs
- CM/DM-CAC
: Rs.100 lacs
Canara Bank
AGM/AGM CAC
DGM-CAC
CGM/GM-CO-CAC & GM/CGM HO CAC
: Rs. 200 lacs

: Rs. 500 lacs
: Rs. 1000 lacs
Passing of Advocate Bills(cir 254/2013): If the amount claimed by the advocate is within the
fee/expense schedule approved by the circle, branch can pass the advocate bills
irrespective of the amount. If the amount claimed by the advocate is more than the
fee/expense schedule approved by the circle, branch has to take up with circle office for
approval before making any payment.
In respect of DRT cases, the fees payable to advocates are as per guidelines vide HO Cir
227/2000. Advocate fee fixed at 1% of claim amount with a minimum of Rs. 12,500 and
max. of Rs. 30000/-. Max. fees to advocates for appearing before DRTs at Delhi, Mumbai,
Chennai, Kolkata, Bangalore enhanced from Rs. 30000/- to Rs. 50000/-. Cases entrustment
to advocates with experience of 2 years and complicated cases to Sr. Advocates with prior
permission from HO.
1/4th of fee payable for conducting DRT cases or Rs. 10000/- whichever is less for
obtention/execution of Recovery Certificate and other proceeds before Recovery Officer in
DRT.
Legal expenses in suit filed accounts are to be absorbed directly to GC w.e.f. 01.04.2003
and a Memorandum Control Account in LPD ledger for legal expenses incurred & recovered
to be maintained.
Issuance of legal notice: Concerned sanctioning authority can issue legal notice.
Category I Securities: Term Deposits, Freehold land & building, NSC, IVP,GPN, GOLD, LIC
Policies etc.
Category II: Leasehold land & building, Stock in Trade, Equipments, Furniture & fixtures
Category III: Book Debts, Supply Bills
Powers for purchase of DDs, Travellers Cheques in Foreign Currency: For Customers:
Rs.2, Rs.3, Rs.5 lacs (small, medium,large branches) For Non Customers: Urban/Metro/Br
at Tourist Centres: USD 1200 for S,M,L branches. Rural/Semi Urban: USD 600 for all 3
categories branches.
Loans to SHGS Rs. 5 lacs, Rs. 10 lacs and Rs. 15 lakhs (small, medium, large branches).
Additional powers for Export credit for Overseas branches: At par with Manager-in-Charge
of Large branch.
Authorities below GM (HO) do not have powers to sanction loans/advances to NBFCs
(Leasing(Only financial leasing not operating leasing), Hire Purchase (Asset Financing),
MFIs engaged in micro finance activities, housing finance companies).
In case of FCLR, ED & above authorities are empowered to permit upto their respective
delegated powers (both fresh as well as by earmarking the existing fund based rupee limit)
Bank has put in place system to monitor the flow of credit to various sectors of the economy
on a run time basis and has introduced Web Based Credit Sanction Register (NB 139). All
proposals including telephonic sanctions shall be reported through this (NB 139). Sanctions
should also be recorded in the package.
Circle Head and above authorities can sanction credit facilities to new borrowers rated
Canara Bank
MODERATE RISK. (212/2011)

Officials in scale I, II & III are delegated to sanction secured loans of less than Rs. 2 lakhs
under priority sector without reference to rating grade of the borrower.
Additional Powers for Scale I, II, III(Working Capital Limits only, Not for Term Loans)
EXPORT CREDIT: Overseas Branch : At par with Manager-in-Charge of Large branch.
CREDIT TO SME in SME Specialised branches: At par with Manager-in-Charge of Large
branch.(Cir 209/2013)
CREDIT APPROVAL COMMITTEEs (CACs)
(Cir 182/2012, 115/2013, 209/2013, 268/2014)
Credit sanctioning powers of individual authorities beyond branch level withdrawn except
RAH/CPU.
Formation of Credit Approval Committees viz. ED-CAC, CGM-CAC and GM-CAC at HO
level and GM-CAC , DGM-CAC, AGM-CAC and DM-CAC at circle level and also at SME
Sulabhs besides the existing Credit Approval Committee of the Board.
Existing credit sanctioning powers of the individual authorities at branches, Central
Processing Units (CPUs) and Retails Assets Hubs (RAHs) to continue. (Upto AGM)
Formation of review committees at various levels for review of sanctions made by each
CAC.
The delegation of powers, for fixation of credit card limits including sanctioning credit
card limits and matters related to transfer of accounts to LPD, waiver of unapplied
interest etc., are kept out of the purview of CAC guidelines and individual authorities in
the administrative units are delegated with powers for sanctioning credit card limits and
related matters, as hitherto.
Existing powers of the individual authorities for adhoc over limit delegated to heads of
CACs and other vertical GMs at HO as prevailing at present to meet certain exigencies.
Delegation of powers in entirety, wherever not specified, in respect of any of the existing
powers delegated to the individual authorities; besides branch, CPUs and RAHs powers;
has been assigned to specific CACs.
Credit sanctioning powers beyond Rs.5 Crore shall be vested with Credit Approval
Committees only, for domestic branches.
DGM as head of branch shall present the proposal to DGM-CO-CAC and will be the
member for the subject Committee.
Credit proposals, falling within the powers of DGM-CAC, originating from the SME
Sulabhs headed by AGM/DM, shall be placed to theDGM-CAC at such SME
Sulabh.(Applicable for more than one SME Sulabh at one place)
Credit sanctioning powers of CAC of the Board and CACs at HO/CO in respect of group
accounts shall be twice the normal credit sanctioning powers of respective CACs.
The Credit Approval Committee (CAC) of the Board shall exercise powers with regard to
credit proposal beyond the powers of ED-CAC but upto 400 crore for an individual
exposure and 800 Crore for group exposure.
The credit proposals beyond the above limit shall be placed before the Management
Committee of the Board as is done hitherto.
Sanctioning Of Loans And Advances To Employees Of The Bank Kept Out Of The
Canara Bank
Purview Of The Credit Approval Committee (CACs). The powers delegated to the
individual authorities prior to the formation of CACs shall continue to be exercised by
them in respect of staff loans under respective schemes.
The Chairperson Or The Member Of The Committee or branch authority Who Will Be
Retiring In Next 3 Months Shall Continue To Chair/ Attend The Meeting And Shall Be
Part Of The CAC.
Consequent to formation of CGM-CAC and Review committee, the GM-HO-CAC at HO
and also the respective Review committee have been dissolved. Henceforth, there
would be only 3-tier CAC at Head Office level viz., CAC of the Board, ED-CAC and
CGM-CAC and all the proposals beyond the Circle level shall be placed to CGM-CAC
and above authorities for decision. (Cir 394/2013)
Non Fund Based Limits: (Secured):
(Cir 157/2010, 432/2010, 209/2013, 268/2014)
The stipulation of minimum security cover of 60% by way of collaterals (inclusive of 25%
margin by way of cash deposits and/or approved securities is withdrawn. However,
obtention of minimum margin of 25%/15% shall continue.
Bank Guarantee of Rs.50000 & above shall be signed by two authorised signatories.
Risk Rating linked delegation power is applicable only in, not fully secured non fund based
limit. The delegated power to different authorities are as under:
Manager in charge of Small branch Rs.8 lacs(LR) & Rs.5 lacs(NR).
Manager in charge of Medium branch/ Credit Manager in VLBs/ELBs Rs.15 lacs(LR) &
Rs.10 lacs(NR)
Manager in charge of large branch Rs.50 lacs(LR) & Rs.30 lacs(NR)
Senior Manager in ELB/VLB Rs.50 lacs(LR) & Rs.30 lacs(NR)
Specialised branches, viz., SSI/ Overseas/ IF/AF and Manager of advances section at CORs.50 lacs(LR) & Rs.30 lacs(NR)
DM/CM Rs.100 lacs(upto NR) & Rs.75 lacs(MR)
AGM In Branch - Rs.250 lacs(upto NR) & Rs.150 lacs(MR)
DGM Rs.800 lacs(upto NR) & Rs.600 lacs(MR).
POLICY GUIDELINES ON RATIFICATION OF ACTION(Cir 03/2013)

In terms of the Accountability policy, maximum period of 30 days from the date of receipt of the
request for ratification is permitted i.e. the sanctioning authority shall grant or reject the request
for ratification of the action within 15 days of receipt of report from the branch and in case of any
queries/ clarifications, another 15 days for taking final decision, otherwise, the transaction in
question shall be deemed to have been approved by the competent authority. The policy also
stipulates that it is the responsibility of the official concerned who is exercising his/ her power to
ensure that timely reporting is made and reasonable follow up is made with the competent
authority to obtain ratification.
Canara Bank
Delegation of powers for CRE (379/2015)

- No powers to authorities below DGM-CO/CAC. No power to DGM CAC at SME sulabhs.
Loans to CRE not to be classified under MSME Sector (HO Cir.7/2016)
Risk Categorisation
DGM CO GM CO CAC
CGM/GM ED
CAC of
CAC
HO CAC CAC
Board
CGM CO CAC
LR/NR
MR
HR
Existing accounts only
3
2
No
Powers
15
8
No Powers
30
15
15
50
25
25
100
50
50
Canara Bank
QUESTIONS
1. A branch is having R s . 4.5 cr total business , branch categorization shall be:

Small.
2. A rural branch is having a 2 years average business (Average Aggregate
Deposits & Advances) of `10 Crores. The branch categorization will be:
Rural Medium. (Above ` 5 crores upto ` 25 crores, headed by Scale II)
3. In order to be eligible for classification of a branch as Large or Very large, the
total business should be
BUSINESS PARAMETS (AVERAGE
CATEGORY
INCUMBENCY
AGGREGATE DEPOSITS AND ADVANCES
NORMS
Above Rs.25 crores upto Rs.75 crores with a
minimum advances of Rs.10 crores and above
Above Rs.75 crores upto Rs.250 crores with a
minimum advances of Rs.25 crores and above.
Large Branch
Scale III Officers
Very Large Branch
Scale IV Officers
4. Book debts, S Bills, BEs which are not co accepted by banks are examples of category
________________ (I / II / III) security for the purpose of delegation of powers.
Category III securities.
The stipulation of linking sanctioning powers to category of securities removed
5. If, Leasehold land and building, inventory of stock in trade, Equipments, furniture
and fixtures, Plant and machinery AND Bills discounted with documents of title other than
RR / Trust receipts are taken as primary / collateral security, it has to be
classified as category (I / II / III) security for the purpose of delegation of powers.
Category II securities.
6. Which of the following is a category I security for the purpose of delegation of powers?
i) Freehold land and Building
ii) Leasehold building having clear marketable title.
iii) Bills discounted with documents of title (RR),
iv) Bills discounted with documents of title other than RR / Trust receipts.
v) BEs accepted / co-accepted by All Nationalized Banks, bills discounted /advances under
LCs of Nationalized Banks / approved Private Banks, foreign prime banks,
vi) Gold bullion
All the above except (ii) & (iv) above
7 A party has constructed first floor to his house availing housing loan from us.
Branch prepared a sanction memorandum in which it is mentioned as follows: Primary
Canara Bank
security: First Floor // Collateral Security: Ground Floor and Land. Is it correct?
The entire house (& not the first floor alone) should be Prime security.
Explanation: For the purpose of delegation of powers for credit sanction,
primary security is defined as those securities which are acquired, set up, created
wholly or partly from the loan proceeds and also consists of the assets on which a
first charge / lien is created in favour of the Bank.
8. No loans can be granted on :
a) Partly paid Shares
b) To Partnership / Proprietorship against primary security of shares
Both a & b
9. Which of the following are essential to call something as Security for the purpose
of delegation of powers for credit sanctions?
a) Those assets should be in the approved list of the Bank
b) Security may be a tangible or intangible one
c ) Security should provide second or subsequent source of repayment of the facility in
the event of default
d). It should be available as first charge / lien in favour of the Bank.
All the above.
10. Consider the following facts and answer as to whether the advance is
secured, unsecured or clean for the purpose of deciding the delegation of credit
sanctioning powers. Loan amount `5 lacs. Margin 25%. If the
a. Value of Prime security `6.25 lakhs
b. Value of Collateral security is ` 7 lacs. Prime security value NIL.
c. Documentary LC
d. Credit facilities secured by Central/State government guarantees upto 100% of
loan amount.
a. Clean (Unsecured category is for statement purpose only. For delegation of
powers only secured /or/ Clean is to be taken). (In the instant case if value of prime
security is more than Rs 6.67 lacs then only it will be called as Secured)
b. Secured (Even if collateral value is upto Rs 5 lacs, it can be treated as secured)
c. Secured
d. Secured
11. If a securities stated specifically as an additional security with a first charge/lien in

favour of the Bank or a security which is not termed as a primary security, then it is
called as
(Collateral / Additional comfort):
Collateral security.
12. Unsecured exposure is defined by the RBI as an exposure where the realizable value of
Canara Bank
the tangible security as assessed by the Bank / approved valuers/RBI inspecting officers,
is not more than ------- ab initio. This definition shall be used for the purpose of
classifying and reporting of unsecured advances
10%
13. What is the difference between sanctioning a loan to a relative of staff and close
relative of staff?
Relative of staff: SA is Next higher authority.
Close relative of staff: SA should be Scale IV and above.
14. Branches do not have any powers to sanction loans / credit facilities to which of
the following party/ies?
a. Loans and advances to NGOs for on-lending to SHGs
b. Discount of bills accompanied by unapproved LRs
c. Working Capital Term Loan - WCTL
d. Funded Interest Term Loan-FITL
e. To Sick industrial companies / CDR / BIFR accounts
f. Limits to clearing agents, ginning factories, cold storage units for clearing, forwarding
and storing services
All the above parties.
15. For All authorities upto DGM the delegated powers for Secured Adhoc facility is
of the SSL Or of the DLL / DSL of the permitting authority for
ccorresponding secured facility whichever is less
. (SSL=Sanctioned secured limit; DLL=Delegated limits; DSL=Delegated sub limits)
20%
// 20%
16. The Adhoc credit facility may be permitted beyond the assessed limit and shall be
priced at least
higher than that stipulated for the regular
credit
facility.
(This is not applicable for export limits.)
The facility can be permitted for a
maximum period of
only.
2% // 90 days
17. If Adhoc credit facility is permitted for a period of more than
days as secured
limit or more than
days as clean limit, then, documentation as applicable shall
be obtained.
30 days // 15 days.
18. Takeover of Borrower Accounts (Other than SME / Canara-trade accounts): The
current ratio shall not normally be less than (other than turnover method) &
in the
case of accounts under Turnover method as per latest ABS.
1.33 // 1.25.
19. Takeover of Borrower Accounts (Other than SME / Canara-trade accounts):
Debt-Equity Ratio shall not be more than as per
the
latest ABS. The
Canara Bank
projections shall also indicate continuance of this trend. However, exception upto may
be permitted very selectively by the respective sanctioning authority.
2.00 // 2.50
20. Takeover of which of the following can be done by the Respective sanctioning authority:
1. Canara trade
2. SME proposals
3. The prospective borrower clears the outstanding liability with the other bank
or institution fully out of their own sources before disbursement of loan from
the Bank
4. All the above.
(4) All the above.
21. For all aggregate credit limits to Non-corporate borrowers (both existing and new)
upto
(FB/NFB including term loans and DPG) we need not obtain Audited financial
statements for sanctions / renewal / enhancement.
` 20 lacs (But Un-audited financial statements shall be obtained.)
22. For business enterprises with a turnover of
and above branches should insist for
ABS along with tax audit report (Form 3cb, 3cd, etc)
` 100 lacs (For professionals if gross income exceeds ` 25 lacs then also Form
3cb / 3cd is to be obtained).
23. CMA - Credit Monitoring Arrangement Forms is applicable for all industrial
borrowers enjoying W C limits of
& above
` 100 lacs
24. Obtention of credit information report from CIBIL is exempted categories are :
a) Govt Sponsored Schemes with aggregate loan quantum of Rs. 2 lacs per borrower
b) DIR loans
c) Agricultural advances upto and including Rs.50000/- per borrower
d) Loans against our own deposits/
e)Canara Pension
f) Gold loans
g) Staff Loans
h) All the above
ANS : d & g only. Modification as per 560/2015
CIR from CIBIL is now Mandatory for all Consumer and Commercial segments
irrespective of credit limits with Exception to the specific categories stated above.
25. Multiple CIRs for consumer segment is applicable to HL exceeding
Rs. 10 lacs/ Rs. 5 lacs
; Car Loans exceeding Rs.
Canara Bank
MSME Secured loans exceeding Rs. 10 lacs, Agri. Segment exceeding Rs. 3 lacs
Unsecured loans: Personal loans exceeding Rs. 1 lac, EL Rs. 4 lacs, MSME 2 lacs, Agri. 1lac
All other unsecured loans exceeding Rs. 5 lacs
26. Credit Investigation Report: Normally information from outside references for limits up to
` 50000/- and outside references for limits beyond ` 50000/- are required.
Two // Three
27. The term Good means used in opinion letter OPL given by bankers means:
Sl. No.
1.
2.
3.
4.
5.
6.
7.
8.
Terms Used Means

Very Small means
Small means
Moderate means
Fair means
Good means
Very Good means
Large means
Very Large means
(in Rs.)
Up to Rs.1.00 lac
Above Rs. 1.00 lac to Rs.4.00 lacs
Above Rs.4.00 lacs to Rs.10.00 lacs
Above Rs.10.00 lacs to Rs.25.00 lacs
Above Rs.25.00 lacs to Rs.1.00 crore
Above Rs.1.00 crore to Rs.10.00 crore
Above Rs.10.00 crore to Rs.25.00 crore
Above Rs.25.00 crore
Modified vide HO Circular 422/2015 Only 8 terms now.

28. Which of the following guidelines regarding Delegation of Powers regarding 3rd
party mortgages is true? (268/2014)
a). In case of 3rd party being a close relative prior clearance need not be obtained from
next higher authority subject to disbursement after putting through of EMT.
b). applicable in respect of sanctioning powers upto the delegated powers of DGM (CAC).
c). For
proposals falling under the delegated powers of Circle Head (CAC)
powers & above authorities, the respective sanctioning authority may permit.
d). For
existing accounts (Renewal, additional & enhancement):
Respective Sanctioning Authorities (CAC) may permit upto their delegated
sanctioning
powers where prior clearance from higher authority was obtained on a
previous occasion.
All the above are true. (Page 55 of DOP 268/2014)
29. Powers to permit TOD in SB / Current accounts by authorities upto scale-III have
been modified with effect from 01.04.2010 vide Cir.113/2010. The modified powers are:
(` 7500 /` 10000 / ` 25000 / None of the above)
None of the above. The power to permit TOD facilities in SB/Current accounts
by authorities upto Scale-III has been withdrawn with effect from 01.04.2010.
Scale-IV and above authorities only to permit TOD facilities in SB/ Current accounts
upto their delegated powers.
TOD in SB Accounts: CM/DM and above authorities can permit upto Rs 10000/- in
SB account.
TOD in current account can be permitted only to the extent of adhoc credit facility
as applicable to non borrower clients, i.e. 10% of the normal delegated powers for
sanction of clean facility.
Canara Bank
Pensioners / salary accounts: Where the pension/ salary is regularly credited at

the branch, TOD may be permitted by Branch in-charge (Scale-I, II & III) in such accounts
upto a maximum of ` 5000/- for a period not more than 15 days, duly obtaining prior
permission from the Advances Section, Circle Office.
Such permission can be permitted by an authority not below the rank of Scale-IV and
the permission granted shall be duly confirmed as per prevailing guidelines.
30. Smt. Renu Kaul is enjoying Canara budget Facility of ` 0.75 Lacs in a Large Branch.
Her account is regular. Miss. Sonia daughter of Smt. Renu Kaul approaches for a Canara
budget loan of ` 0.75 Lacs. Authority who can sanction the Loan to Miss Sonia is
Respective Sanctioning Authority.(Exemption for Agri & retail Loans)
Explanation: Proposals from the members of the same family:
All proposals in respect of loans / advances except Agri & Retail Lending
Schemes of different individual members belonging to same family should be
placed before the appropriate higher authority for sanction.
Modification to the above: Agricultural & Retail loan proposals are exempted from the
purview of above said guidelines.
31. What are indirect credit facilities to employees & who can sanction such loans?
It means credit facilities to employees of the Bank through employees
cooperative societies / organizations etc. It can be sanctioned by the MC
of the Board, irrespective of quantum of loan.
32.
Branch-in-charge of small/medium/large branch can permit loans /advances

against approved securities (other than our own term deposits) to our Bank staff
members up to
Rs 50000/- ( Mgr/SM of Advances Section at COs: Rs. 1lac;
CM of VLB and other specialized branches like PCBs, Specialised SSI, IF, specialized
Agri. , overseas and DM at CO : Rs. 1.5 lacs,
AGM, ELB, PCB/CO Rs.3 lacs;
DGM CO/PCB : beyond Rs.3 lacs as applicable to Customers.)
33. Need based fresh finance up to Rs.

may be considered by the
respective sanctioning authority to the borrowers who are non-wilful defaulters,
undertaking agricultural and allied activities, those belonging to weaker section for
undertaking all gainful activities and have repaid at least % of the principal amount of
the previous loan before permitting concession / compromise and only after
months from the date of clearance of
the dues under OTS.
` 50000/- // 10% // Three months
Explanation: The applicant borrower should not be a defaulter with other Banks in
the service area. No Due Certificate from Service Area Banks, Co-operative Societies
Canara Bank
and other nearby branches / Banks should be obtained. Fresh loans may be
considered as far as possible in joint names viz., along with the spouse or along
with the eldest members in the family (in the absence of spouse) to ensure family
responsibility.
34. Need based fresh finance to small and marginal farmers upto (` 10000/- // ` 25000/- //
` 50000) subject to viability and merits can be permitted by the respective authority as per
delegation furnished in the charts irrespective of the authority who had earlier permitted
compromise settlement/OTS/Waiver/Write off.
` 50000/- In case the loan amount sought is above ` 50000 the same can be
permitted by Next Higher authority at CO
35. Small category branches can sanction loans against NRE/ FCNR (B) Deposits
to depositor (himself and not to third party) upto `
(` 10 lacs / ` 20 lacs / ` 30lacs / `
100 lacs)
` 30 lacs.(Third Party ` 3 lakh)
36. Minimum margin of
% on the security while granting loans to the
depositorsagainst the security of their NRE/ FCNR (B) deposits. However, DM (O)
(CAC) of CO or CM/ AGM/ DGM (CAC) of VLB/ ELB/ PCB (including CM/ AGM/ DGM
(CAC) of specialized branches) can permit granting of loans/ advances with
%
margin. )
25% // 10%
37. Branch in-charge may sanction loans/ advances against Domestic Term deposits
(prime security) with
_% margin (standing in the name of the depositor/s only) in
respect of loans upto their delegated powers.
10%
38. Standby credit for SME can be permitted to the extent of
limit or the delegated power whichever is lower:
20% for LR/NR parties, 10% for MR rated parties
39. Standby credit in respect of export credit s h a l l be
the delegated power whichever is lower:
10%
of
the
sanctioned
% of the sanctioned limit or
40. Standby limits for Gold Card scheme to exporters - While assessing the limits itself,
the standby facility of
over and above the assessed limits shall be assessed and
the facility shall be made available only to facilitate urgent credit needs for sudden/
unexpected orders and not as a regular limit (cir 288/2010)
20%
41. A Manager in charge of large branch can sanction VSL against Deposit standing in
the name of Minor upto Rs
Canara Bank
Rs 3 lakhs (Small - Rs 1 lac lacs // Medium - Rs 2.00 lacs // CM - Rs 2 5 lacs /

AGM and above - Full powers)
42. A branch manager of Large Branch can sanction Agricultural Advances to a
borrower upto Rs in his powers:
Rs 30 lacs
Explanation: Small Branch: ` 10 lacs, Medium Branch: ` 2 0 lacs. The powers are
same for both term loans/short term loans. Estate purchase loans can be sanctioned by
DGM (CAC) and above only
43. Substantial interest, in relation to a company, means the holding of a beneficial
interest by an individual or his spouse or minor child, whether singly or taken together,
in the shares thereof, the amount paid up on which exceeds `
or
% of the paid
up capital of the company, whichever is less
` Five lacs // Ten percent
Explanation: substantial interest, in relation to a firm, means the beneficial interest held
therein by an individual or his spouse or minor child, whether singly or taken together,
which represents more than ten percent of the total capital subscribed by all the partners
of the said firm.
44.
Which of the following statement is correct regarding aggregation of limits for the
purpose of deciding
delegation
of powers /ROI, etc.?
(a) In case of proprietorship concern, if the proprietor is also proprietor of more
than one concern, then all the facilities granted and to be granted as per proposal in
process should be aggregated to determine the delegation. (b) This principle will also
apply in the case of partnership firms where the partners are the same.
Both (a) & (b) are Correct.
45. A party is enjoying OCC credit limits under Head Office powers. No Bank Guarantee limit
has been sanctioned by HO to him. The party is in urgent need of a BG for ` 1.00
lacs. The party is offering 100% margin by way of Term deposits of our bank to be
made by you by debit to his OCC account. The proposal can
be sanctioned by
(Branch (CAC) / Circle (CAC) / HO).
(CAC): SA i.e. HO (CAC) only.
A lower authority (CAC) must not sanction any credit limit / facility even against
100% cash margin, where sanction of other related facilities fall within the sanctioning
powers of higher authorities and / or where sanction of such limits automatically or
impliedly entails sanction of other facilities by higher authorities.
46. CDB/ LCDB can be provided to clients who have credit facilities with the Bank. In
all other cases the facility can be provided only to those who have satisfactory dealings
with the Bank for not less than (One Month / 3 months / 6 months / One year)
One year.
Canara Bank
Explanation: Any relaxation on the period mentioned above may be permitted by

the next higher authority within their delegated power for permitting such transactions.
The risk associated with such transaction has to be studied and genuineness of the
instruments has to be ensured.
47. Which of the following statements are TRUE regarding renewal of NRE/NRO
/FCNR term deposit against which loan liability is still outstanding: (Cir.IO/18/2010)
A. If the depositor requests to renew the deposit, as well as the loan, against such deposits,
in such case, fresh loan may be granted against the renewed deposit and with
the amount of the fresh loans, the existing loan liability may be cleared. A. Branches to
obtain fresh loan papers for the new loan granted.
B. The period of loan should not exceed the unexpired period of deposit.
All the above.
48. In certain cases, the amount of regular credit facilities
sufficient to meet certain exigencies like payment of statutory
orders, temporary mismatch in receipts payments etc. Hence,
the authorities may be required to permit credit facilities
viz., (ACF / AOL / TOD / ExD) Cir: 154/2013, 398/2015
Adhoc Over limit.
permitted may not be

dues, executing bunched
to meet such exigencies,
for very short duration
49. CM/DM are empowered to permit AOL (adhoc over limit) facilities over the
sanctioned limits to existing borrowers upto % of the sanctioned limit provided
the total of such adhoc over limit is restricted to ` 25 lacs. Cir: 154/2013
10%
Other conditions regarding AOL: Security: The facility should be adequately
secured. Asset status: Standard and not rated High risk. Regular limit: To be in
force and no overdues The adhoc overlimit as above shall be within the permissible limit
delegated for adhoc credit facility. Reporting & Periodicity: The reporting formats on
adhoc over limits shall be submitted on fortnightly basis i.e. as on 15th and last day of the
month.
50. Branches can issue legal notice upto `
(` 50000/- // ` 1.00 lacs // ` 2.00 lacs //
` 5.00 lacs // None of the above)
None of the above.
Explanation: Respective sanctioning authorities are authorized to permit issuance
of legal notice.
Circle Heads are empowered to permit issuance of legal notice in respect of all
sanctions (including CGM/GM-HO-CAC/ED-CAC/CAC of Board and the Management
Committee of the Board).
51. Normally, the entire creditors on account of purchase of goods/ raw materials
are deducted from stock value to determine drawing limit. In exceptional cases based on
merits thereof, drawing limit may be determined without excluding sundry creditors
for goods subject to obtaining permission from competent authority. The competent
Canara Bank
authority for an account falling under Circle Head Powers is

ED (CAC) / CMD (CAC) / MC)
CGM:HO CAC)
CGM:HO
(CAC)
Explanation: GM, HO (CCW / PCCW / PCW / RW) (CAC) For accounts falling upto
their sanctioning. In the case of accounts falling under the powers of ED (CAC) and
C&MD (CAC), the same may be permitted by the respective sanctioning authority. In the
case of accounts under the powers of MC, the same may be permitted by C&MD (CAC)
or ED (CAC) in the absence of C&MD (CAC). In the case of consortium advances,
where we are the members, we may fall in line with the decision of the consortium
leader.
52. . operations are usually practiced by group of Concerns / groups of
persons maintaining accounts with different banks. Such operations are conducted by
tendering cheques (drawn on another bank or branch of the same bank) for
purchase without arranging for funds at the drawee bank. This is done on a round
robin way. On the inevitable instance of return of cheques unpaid (due to inadequacy of
funds in account with drawee bank) a fresh batch of cheque will be lodged in substitution
of returned cheques. The cheques thus lodged are again not covered by adequate funds.
The cycle goes on till the chain is broken. This practice has to be identified and avoided.
(Cir.166/2009) Which of the following term correctly describes the above? (a)
Accommodation ( b) Whistle blowing (c) Teaming and Lading (d) Protest (e) None of
these.
None of these. Correct term: Kite flying.
53. Cheque Discounting/ Purchase (Credit / Debit / Cash) slips amounting to ` and above
should be signed by two officials & one should be
(Scale I officer with 4 years of service / Official in charge of Credit department /
Credit Manager / Any Scale -II or III rank / None of these). (Cir.166/2009) Credit // Rs
2 lacs // None of these (Correct answer: Manager-in-charge of the branch)
54. Advocate Bills upto the suit claim of `
can be settled by branches without
seeking the approval from CO. Beyond this amount, branches to seek permission from
CO. (Cir.154/2013)
Any suit Amt as per schedule
55. List of approved shares is reviewed every quarter by
Credit Policy Section, RM Wing, HO. (Cir.33/2010)
56. Branches to review the loans on a
(Fortnightly / Monthly / Bimonthly /
Quarterly) basis vis--vis updated list of approved shares. (Cir.33/2010).
Quarterly
57. Branches are
advised
to
review the
loans against shares at
least
Canara Bank
On a
(Fortnightly / Monthly / Bimonthly / Quarterly) basis to ensure
adequacy of margin. (Cir.33/2010, 54/2010 & 160/2010)
Fortnightly
58. In the cases where loans are outstanding where shares / debentures are not
appearing in the current revised list, branches to initiate steps regularization either by
way of substitution with other approved shares/debentures of adequate value or by
way of recovery within
period.(One / Two / Three). Further extension of time
ore
than
3
months
for
of not m
the substitution if required can be permitted by (RSA
/ NHA / AGM:CO / Circle Head) (Cir.363/2010)
Three months / Circle Head
59. Viability reports of Micro enterprises, Agriculture loans up to ` 25 lacs & Consumer
loans have to be prepared by Bank s Panel / PFD @ Circle) Branches. Cir.245/2010
(Branches / Circle / Chartered Accountant in 60.
First
restructuring
within
the permissible
time,
involving
rephasement of outstanding liability can be permitted by (RSA / NHA / Circle Office /
Circle Head) Cir.245/2010
Respective sanctioning authority
61. In case the borrower fails to replenish/repay the diverted funds on or before
the stipulated period penal interest at % should be charged from the date of
diversion till the date of replenishment/repayment by the borrower. Proposals for waiver /
reduction of such penal interest can be considered by
(Circle Head / GM:HO /
CMD or ED in the absence of CMD / None of the above)
2%. None of the above.
Explanation: There is no provision to waive levying of penal interest on the amount of
funds diverted. Such penal interest is to be levied / collected even when the
borrower repays/brings back into the system before the first 30 days.
62.
(Circle Head / GM:RW:HO / CMD or ED in the absence of CMD / None of the above)
shall have the power to identify and confirm all willful defaulters for accounts with
liability less than ` 25.00 lacs and inform the Circles to issue notice to all such defaulters
informing our intention to classify them as Willful Defaulter.
General Manager, Recovery Wing
63.
Identification of willful defaulters, for accounts with liability of ` 25.00 lacs and
above, shall be decided by ((Circle Head / GM: RW: HO / CMD or ED in the
absence of CMD / None of the above) shall identify all such accounts and inform the
Circles to intimate each such defaulters about our intention to classify them as
Willful Defaulter by giving 7 / 15 / 30 / 45) days' notice to submit their
grievances if any. (Cir191/2008)
None of the above / 15 days Notice Explanation: Committee at HO is
empowered to identify and confirm in this case.
Canara Bank
64. Branches can contemplate criminal action against the willful defaulters by obtaining
prior permission from _. (Cir.191/2008)
DGM of the Circle Office
65. Branches can publish the photographs and details of willful defaulters with a
liability of above Rupees
(` 5 lacs / ` 10 lacs / ` 25 lacs) and names of
guarantors in newspapers. Permission of
shall be obtained before publication. Cir.
261/2007
` 10.00 Lacs // DGM of the Circle
66. In respect of loan sanctioned to employee during his service in the Bank, the
sanctioning authority for waiver of legal action shall be
CMD or ED in the absence of C&MD.
67. Which of the following proposal requires clearance from the Next Higher authority?
(a) Housing Loan to NRI with 2 years gross income (b) Housing Loan to a
person aged above 55 years (c) First Housing loan to a party acquiring second housing
unit (d) All the above.
(b) Only.
Explanation: For Financing borrowers aged more than 55 years: (a) The borrower may
avail the loan jointly with the earning member/s of the family/close relative who is having
sufficient repaying capacity subject to perfection of security OR offer adequate
collateral security
(b) Margin - 25%. (c) Obtaining clearance from the next higher authority.
68.
are authorized, to permit disbursement in housing loan by

Way of reimbursement, within their delegated sanctioning powers not exceeding _%
(25 / 50 / 75 / 80-85) of the loan amount. Reimbursement to be claimed within (1 / 2
/ 3 / 6) months from the date of incurring the expenditure. This option should be
exercised judiciously. (Cir 329/2009)
Circle Head (CAC) and above authorities at HO (GM, RB&S Wing, HO & above
authorities) (CAC) // 25% // Three months.
69. Loans to employees for purchase of books upto a maximum limit of R s 5000/under Modified Canara Budget Loan Scheme. The sanctioning authority for this loans
would be _____
Branch in charge
70. Which of the following is correct regarding rejection of loan applications for credit
facilities from SC/ST customers? (a) Rejected by Next Higher authority at branch (b)
Rejected by branch and clearance / concurrence to be obtained from Next Higher
authority at Branch / Circle (c) Rejected by branch and noted in a separate register (d)
Refer the application to NHA at Circle for prior permission
(d)
Canara Bank
Explanation: Applications shall not be rejected at branch level and such

applications shall be referred to the next higher authorities for their prior decision /
permission.
facilities under Government sponsored schemes? (a) Rejected by Next Higher
authority at branch (b) Rejected by branch and clearance / concurrence to be obtained
from Next Higher authority at Branch / Circle (c) Rejected by branch and noted in a
separate register (d) Refer the application to NHA at Circle for prior permission
(c)
Explanation: Whenever applications for loans under Government sponsored
schemes are rejected by the Branch Manager himself / herself for valid reasons, a
register is to be maintained to this effect which shall be examined by the
controlling authorities during their branch visits.
facilities under MSME & Education loans? (a) Rejected by branch and noted in a
separate register (b) Rejected by Next Higher authority at branch or Circle (c) Rejection
is subject to concurrence of the next higher authority (d) Refer the application to NHA at
Circle for prior permission
(c)
73. Which of the following is the correct guideline regarding Rejection of export
credit proposals?
(a) Rejected by CMD (CAC) (b) Rejected by the CMD (CAC)
on the recommendations of Circle & report to RBI. (c) Rejected by NHA at Circle and
noted in a separate register (d) Rejected by respective sanctioning authorities and
reported to C&MD
(d)
74. Under the Canara Trade Loan scheme, time gap between two valuation
reports__________ for enhancement in sanctioned limits and maximum appreciation
permissible in value of the property shall be __________
3 year/ 25% max. by respective SA.
75. Education loans above ` 15 lacs to be sanctioned by
Answer: NHA i.e. AGMs of Branch / CO.
76. Which of the following needs to be referred to the next higher authority at CO
for sanction?
(a) Sanctioning of second loan to the same borrower, in case of CANARA CASH
schemes, during the currency of the existing loan
(b) Sanctioning of second loan to the same borrower, in case of CANARA
V E H I C L E schemes, during the currency of the existing loan.
(c) For acquiring second house / flat where the borrower is already having a house / flat
Canara Bank
with or without loan under our Housing Loan scheme

(d) Second loan for higher studies / continuing the studies under our Vidyasagar
Education loan Scheme
(b)
77. Which of the following education loans will be sanctioned by Circle Head (CAC) Only?
(a) Nursing Courses at Institutions which are having provisional approval for only one
year from Indian Nursing Council
(b) Pursuing undergraduate medical course in Foreign Medical Institutions subject to
Production of Eligibility Certificate issued by the Medical Council of India (MCI).
(c) Diploma Courses / Certificate Courses for studies abroad
(d) Students securing admission under Management quota, based on the admission
advice/ admission card issued by the college / institution admitting students on
Management quota.
(d) For guidelines regarding ELs for students getting admission under Mgt
Quota admission refer Cir 135/2009 & 354/2009.
Explanation: Option (a) above: Cannot be sanctioned. Refer Cir.140/2009. Option (b)
can be considered by respective sanctioning authority.
Refer Circular 249/2005.
Option (c) Cannot be considered. Only degree / PG Degree can be considered
under studies abroad. Refer Cir.135/2009
78. Restrictions on Loans and advances to Bank s Directors and firms in which they
hold substantial interest, are laid down in Section
1949
Section 20(1) of BR Act,
79. If Proprietorship concerns and partnership firms
where
partners
are
the
same, if individual borrowers are of different risk rating grades, then the delegation
of powers applicable with reference to
(lower/higher/actual/any)
risk
grade among the firms shall be applied to determine the sanctioning authority.
Higher Risk Grade
80. Loans /Advances against NRE/FCNR(B) deposits to Third Parties, shall be granted by
: a) any authority (CAC) within their delegated power b) only branch head (CAC) c)
Authorities not below scale IV (CAC) d) Head of the Circle (CAC) and above authorities
(a) Cir 400/2012
81. According Expression of Interest (EOI) by CAC of Board ( in case of MC power
accounts) shall be valid for a period of:
3 months. However, the proposals need to be screened by New Business Group
LDGM 13/2015 regarding guidelines
82. All proposals falling under sanctioning powers of ED CAC and above authorities to be
routed through NBG ?
Canara Bank
No. Explanation :Existing parties: only TLs for diversification into new line & New Parties
which are rated A and below by ECAI, or NR and below in internal rating: TL proposals
only need to be taken up with NBG. WC limits proposals need not be referred to NBG.
(LDGM 13/2015)
83. Officials in scale I, II & III are delegated to sanction secured loans of less than `
priority sector without reference to rating grade of the borrower
` 2 lakhs
under
84. While sanctioning Non Fund based Limits, overall collateral security including cash
margin not to fall below % of the NFB exposure (cir 209/2013)
No minimum stipulation(Minimum Security cover of 60% by way of collateral
withdrawn)
85. In case of frauds committed by Third Party Entities (Advocates, CAs, Valuers),
branches have to report to CO and CO will report to R&R Section, Vigilance Wing, HO.
It shall be placed before committee of General Managers at HO. Ultimately, HO will
communicate the name to :
IBA for the purpose of dissemination among member banks: (Cir 140/2011)
86. Who is the authority to Grant loan/ advances for subscription to (Indian Depository
Receipts) IDRs and also against security / collateral of IDRs (Cir 164/2011)
Bank shall not grant loans against security of IDRs as per RBI Directives.
87. __________Authority is empowered to permit ROI on loans/advances against deposit
below 1% of deposit rate
ED-CAC (209/2013)
Canara Bank
CHAPTER 3
RATE OF INTEREST & PROCESSING / COMMITMENT CHARGES
/ UPFRONT FEE
(Cir 483/2015,559/2015)
Rate of interest: General
BASE RATE : Recommended by Shri Deepak Mohanty Working Group
Present Base Rate is 9.65 % (cir 483/2015)
Exempted categories for pricing with reference to Base Rate: (a) DRI advances (b) Loans to
banks own employees (c) Loans to banks depositors against their own deposits & other
Base Rate = Cost of Deposit + Negative Carry on SLR/CRR* + Unallocatable Overhead
Cost* + Average Return on Net Worth* ( *Formula has been suggested by RBI for
calculating each of these elements of BR)
Negative carry on CRR and SLR balances arises because the return on CRR balances is
nil, while the return on SLR balances (proxied using the 364-day Treasury Bill rate) is lower
than the cost of deposits.
Unallocatable Overhead Cost is calculated by taking the ratio (expressed as a percentage)
of unallocated overhead cost and deployable deposit.
Average Return on Net Worth is computed as the product of net profit to net worth ratio
and net worth to total liabilities ratio expressed as a percentage
Base Rate applicable for all new loans and renewals wef 01-07-2010
For existing accounts, BPLR applicable till maturity. If party opts for Base Rate, bank to
switch over to base rate without any extra charges.
ROI on exposures above Rs.2.00 crore are to be based on credit risk rating (internal /
external).
For the exposures above Rs. 2 lakhs upto Rs. 2 crores to be based on the scoring norms
excepting retail loans
Since the Base Rate is the minimum lending rate for all loans and advances (except
excluded category), lending below the Base Rate is not permitted. However, this
stipulation is not applicable for
i) Restructured loans - if some of the WCTL, FITL etc, need to be granted below the
Base rate for the purpose of viability and there are recompense clauses etc.
ii) Loans eligible for interest subvention in respect
of Agriculture and Export
advances,
iii) Loans to entrepreneurs under the scheme on financing of Off-Grid & Decentralized
Solar (Photovoltaic & Thermal) applications as part of the Jawaharlal Nehru National
Solar Mission, Government of India, Ministry of New & Renewable Energy (MNRE)
extended at subsidized rates of interest not exceeding 5% where refinance of 2%
from Government of India is available, and hence will not be construed as violation of
Base Rate guidelines.
iv) Lending at interest rates prescribed under the schemes of NSTFDC/ NHFDC to the
Canara Bank
extent refinance is available and such lending would not be considered as violation of
Base Rate guidelines even if it is below the Base Rate. However, interest rate charged
on the part not covered under refinance shall not be below Base Rate
v) Lending to National Safai Karmacharis Finance & Development Corporation (NSKFDC)
to the extent refinance available, even if the interest charged at the rates prescribed
under the scheme is below the Base Rate. However, interest rate charged on the part
not covered under refinance shall not be below the Base Rate.
vi) Banks may charge interest at the rates prescribed under the schemes of National
Scheduled Castes Finance & Development Corporation (NSFDC) to the extent refinance
is available. Such lending, even if it is below the Base Rate, would not be considered as
a violation of our Base Rate guidelines. Interest rate charged on the part not covered
under refinance should not be below the Base Rate.(Cir 7/2013)
Now RBI has informed that banks may also charge interest rates as prescribed under
the schemes of NBCFDC (Backlward Classes) and Special Refinance Scheme for flood
affected areas of J& K formulated by NHB to the extent of refinance available
(592/2014). Such lending, even if it is below the Base Rate would not be considered as
violation of our Base rate guidelines.
Other major aspects contained in the guidelines are the following:
(i)
The Base Rate serves as the reference benchmark rate for floating rate loan products
apart from external market benchmark rates. The floating interest rate based on
external benchmarks should, however, be equal to or above the Base Rate at the time
of sanction or renewal.
(ii)
Changes in the Base Rate shall be applicable in respect of all existing loans linked to
the Base Rate in a transparent and non-discriminatory manner.
(iii)
Banks shall be free to decide the lending rate on export credit at or above the Base
Rate.
(iv)
Bank is required to review the Base Rate at least once in a quarter with the approval
of the Board or ALCO as per banks practice.
(v)
Bank shall be required to provide information on the actual minimum and maximum
lending rates to the Reserve Bank on a quarterly basis.
(vi)
Existing TLs based on the BPLR system may run till their maturity. In case existing
TL borrowers want to switch to the new system, before expiry of the existing
contracts, an option will be given to them, on mutually agreed terms. Bank will not
charge any fee for the switch over.
Maximum Lending Rates
Working Capital limits/ Short Term Loans 7.00% over Base Rate i.e.16.65% at present
Term Loans Upto 5 years 7.40% over Base Rate
Term Loans 5 to 10 years 7.65 over Base Rate
Term Loans >10 years 8% over Base Rate
ECNOS 5.00% over Base Rate i.e.14.65% at present
Clean OD/ DPN Max. Rate 7.00% over Base Rate i.e.16.65% at present
Canara Bank
ROI for Unsecured advances : Rs.1.00 crore and above, additional rate of 1% may be
charged over and above the applicable rate even if it exceeds the maximum rate
In case of aligning the ROI to MSME borrowal accounts, it shall be ensured that in respect
of existing accounts with concessional rate of interest, the rates will be aligned to the
card rate only. Any reduction below that stipulated under card rate shall be subjected to
immediate review to ensure that further reduction is not passed on to the borrower.
ROI ON LOANS / ADVANCES NOT EXCEEDING Rs.2 LACS : 13.15%
Loans to Self Help Groups UPTO Rs. 3 lacs : 11.20%
Agriculture Loans: Upto Rs.3 lacs:: 10.85 (BR+1.20%)
RETAIL LENDING SCHEMES:
SCHEME NAME
CANARA VEHICLE Four Wheeler
WOMEN
MEN
CANARA VEHICLE (TWO WHEELERS)
ROI
9.90 (BR + 0.25)
9.95 (BR + 0.30)
12.65% (BR+3.00%)
CANARA PENSION
12.65% (BR+3.00%)
CANARA PENSION(Retired Employees of the Bank and

family pensioners of such deceased retired employees)
SWARNA LOAN
CANARA JEEVAN
11.15% (BR + 1.50%)

12.75% (BR+3.10%)
11.15% (BR+1.50%)
Base Rate+4 i.e., 13.65%
CANARA BUDGET (With Salary tie- up
Base Rate +5 i.e., 14.65%
CANARA BUDGET (Without Salary tie-up)

CANARA RENT
- Navaratna PSUs, AAA rated Companies, Fortune 500 Companies,
MNCs, Banks, Insurance Companies
- Others
CANARA MORTGAGE
12.15% (BR + 2.50%)

12.40% (BR + 2.75%)
12.40% (BR + 2.75%)
CANARA SITE, CANARA CASH
15.90% (BR+6.25%)
TEACHERS LOAN
13.40% (BR+3.75%)
CANARA CONSUMER LOAN

ALL OTHER PERSONAL LOANS INCLUDING LOANS TO INDIVIDUALS
AGAINST OTHER APPROVED SECURITIES
13.90% (BR+4.25%)
14.90% (BR+5.25%)
HOME IMPROVEMENT LOAN

Where EMT of the house/flat is available in respect of loan availed as part of our
housing
finance OR where
housing finance earlier availed by the party from our
HOME IMPROVEMENT
LOAN
Bank is existing (without any overdues)
In all other cases other than the above
CANARA HOME LOAN PLUS
EL (IBA Model): Upto Rs.4 lacs: 11.65%,
11.25%
11.65%
(BR + 2.00%)
11.90% (BR + 2.25%)
11.90%
2.25%)
13.65%((BR
BR ++4.00%)
Rs.4-7.5 lacs: 11.65%, Above
Rs.7.5 lacs
Canara Bank
EL both Priority and NP : under Shaheed EL and RBI Scheme 12.15%

(Reduction of 0.50% on the applicable ROI on the EL loans extended to girl students will
continue for existing students)
Pre Shipment Credit Upto 270 days: 10.15%, 270 to 360 days:ECNOS, >360 days:
ECNOS from the date of advance.
Export Credit against incentives receivable from Govt. Upto 90 days: 10..15%, Beyond 90
days: ECNOS
Export fails to take place on account of frustration of export contract, advance recovered
from domestic sources : ECNOS+1% from date of advance
Post Shipment Finance
Category of Rupee Export Credit
Revised
(a) On Demand Bills
i) for Normal Transit Period (NTP) (as specified by FEDAI)
10.15
ii) Beyond NTP
upto 180 days from the date of advance
from 181st day till date of realisation/ crystallization
iii) Beyond date of crystallization till date of recovery
(b) Against Usance bills:
i)
Upto Notional Due Date(NDD) or Actual Due Date whichever is
earlier but not exceeding 180 days from the date of
advance
ii)
Beyond NDD/Due Date
- upto 180 days from the date of advance
from 181st day till date of realization/ crystallization
iii)
Beyond date of crystallization till date of recovery
11.40
12.65
ECNOS
10.15
11.40
12.65
ECNOS
LOAN AGAINST DEPOSITS:

Upto 90% of deposit amount: 2% extra to deposit rate. 90% -100% of deposit amount: another
2% extra to stipulated rate. >100%: Clean rate ie 16.65%
Loan against Third Party Deposits: upto 75% (80% if permitted by Scale IV and above):
Base Rate +3% or 3% above deposit rate, whichever is higher
Beyond 75% (80%): Clean rate ie Base Rate + 7%, now 16.65%.
VSL interest where deposit closed before minimum period of deposit:: Upto Rs.2 lacs:
13.15%, Beyond Rs.2 lacs: Borrower applicable rate or BR+6%% if no limits are
enjoyed by borrower.
Loans/advances against security of NNND deposits
-75% (90% if permitted by Scale IV and above) :11.65%
- Beyond 75% (90%) of deposit amount: 13.65%.
Loans & advances against NNND where deposit closed before maturity without earning
interest : Upto Rs. 2 lacs: 13.15%
beyond 2 lacs : 15.65%
LOAN AGAINST FCNR DEPOSIT IN FOREIGN CURRENCY:
Upto 90% : 2% above ROI offered or 2% above LIBOR/SWAP rate for the period of loan,
Canara Bank
whichever is higher
Beyond 90% to 100% of deposit: 2% above stipulated rate on overdrawn liability.
LOAN AGAINST FCNR IN INDIAN CURRENCY:
Upto 90% : 9.70% (Base Rate + 0.5%)
90% to 100% : Above rate + 2%-11.65% on overdrawn liability
Beyond 100% : Clean Rate-16.65% on overdrawn liability
LOAN AGAINST FCNR THIRD PARTY DEPOSIT
Upto 75% : Base Rate + 3%
Beyond 75%: Clean Rate on overdrawn liability
Loans against NRE/FNCR deposits, in Indian Currency, closed before maturity where
minimum stipulated period is not completed:
Against NRE/NRO deposits: 15.65% (Base Rate + 6%)
Against FCNR : LIBOR + 2.5% with minimum 1 month LIBOR+2.50%
NOTIFYING BORROWERS ABOUT THE CHANGE IN RATE OF INTEREST (Cir 143/2011)
In respect of all EMI loans other than housing loan products, it is to be ensured that requisite
notices are sent to borrowers, notifying them about the increase in rate of interest and
consequent increase in the installment amount
After sending the notice, if borrowers submit written request (signed by all parties including
guarantor/s, if any), to increase the EMI and keep the repayment tenure unchanged,
necessary changes in the master details relating to repayment terms may be carried out.
Interest on Refinance From IDBI, SIDBI: (cir 70/2009)

In respect of refinance availed by the Bank from IDBI, interest is paid every six months on
31st May and 30th November every year.
For refinance availed from SIDBI, interest is being paid on a quarterly basis on 1 st March, 1st
June, 1st September and 1st December every year
Revision in Service Charges Non Priority Credit: (391/2015)

Collection charges in respect of following facilities have been introduced :
1.
Collection of processing charges on Adhoc Facility for a period not exceeding 15/30
days depending on whether such facility is secured or unsecured without linking to
clearance of the adhoc facility. @ 0.20% pa of the amount of overdrawing allowed with a
minimum of Rs. 200/- and max. of Rs. 10000/-. Such charges shall not be collected on
overdrawings in SB.
Adhoc facility beyond 15/30 days: normal processing charges as applicable to be
Canara Bank
2.
collected.
Register to be maintained in this regard.
Annual Review Charges for TLs above Rs. 1 cr : Rs. 100 per lakh Min. Rs.10000/- and
max. Rs. 5 lakhs.
(i.e., outstanding liability plus unavailed
limits) annually commencing from
completion of one year from the date of first disbursement.
3.
Vetting of Information Memorandum/TEV Report prepared by other Banks/FIs:

PC Rs. 2 cr and above upto Rs. 10 cr : Rs.50000/Above 10 cr and upto Rs. 50 cr : 1 lac
Above Rs. 50 cr and upto Rs. 100 cr : 2 lacs
Above Rs.,100 cr: Rs. 3 lacs
4.
Giving Opinion on assessment of impact of cash flows in case of extension of DCCO,

delay in achieving financial closure etc., in case of projects earlier appraised by
PAG/PAC: Charges to be collected upfront :
PC Rs. 2 cr and above upto Rs. 10 cr : Rs.50000/Above 10 cr and upto Rs. 50 cr : 1 lac
Above Rs. 50 cr and upto Rs. 100 cr : 2 lacs
Above Rs.,100 cr: Rs. 3 lacs
Waiver of project appraisal : Flat charge of Rs. 1 lakh per waiver
Wherever vetting of IM/TEV Report of other banks/FIs is involved, charges applicable for
vetting/waiver, whichever is higher shall be collected. :
Fee for opening/operating Escrow/TRA accounts : To be collected upfront :
Our share in limits : Upto Rs. 5 cr
; Rs. 1 lakh pa
>Rs.5cr & upto Rs. 10cr: Rs. 2 lakh pa
>Rs. 10 cr
: Rs. 5 lakh pa
5.
6.
7.
Providing Credit Information Reports: For Individual Customers : Rs. 50/For non individual Customers : Rs.500/-
8.
Revision in repayment schedule : Repahsement of loans/Deferment in loan

instalments:0.05% of the limit, Min. Rs. 20000/- , max. Rs. 100000/-.
Separate processing charges slabs for WC FB and NFB done away with. Common
charges to both FB and NFB introduced: Upto Rs. 50000/- Rs. 250
>50000 upto Rs. 2 lacs; 0.35% per lakh with min.Rs.550/> 2 lakhs : Rs. 350 per lakh with min.Rs.1000/- max. Rs. 35 lacs
Upfront fee/Review charges on TL : As against 5 slabs , 4 slabs now
Upto Rs. 50000: Rs.250
>50000 upto 2 lakhs: 0.50% of the loan amount with min. Rs. 500/>2lakhs upto 25 cr : 1.25% of loan amount
Canara Bank
> 25 cr: 1% of loan amount Min. Rs. 30 lakhs and max. Rs. 75 lacs
Revalidation charges :
Upto Rs. 1 cr : 0.75% of limit with min.Rs. 15000/- for each revalidation
Above Rs. 1 cr: 0.50% of the limit with min. Rs. 75000/- max. 2,50000/- for each
revalidation of sanction.
Modification of Sanction Terms :Upto Rs. 10 cr Nil, >10 cr upto Rs. 50 cr:Rs. 1 lac for
each modification; above Rs. 50 cr 2 lac for each modification.
Godown Charges : Pledge: Upto Rs. 2 lacs Nil; > Rs. 2 lacs upto Rs. 10 lacs: Rs. 100
per inspection; Above Rs. 10 lacs Rs. 300 per inspection newly introduced
Other than Pledge : Limits upto and inclusive of Rs. 5000 : Nil
>5000 upto and inclusive of Rs. 25000/- : Rs. 50 per inspection with max. of Rs. 750 pa
Above 25000 upto and inclusive of Rs. 2 lacs: Actual expenses incurred with a min of
Rs. 100 per inspection and max. of Rs. 1500 per year
Above Rs. 2 lakhs upto and inclusive of Rs. 10 lacs: Actual expenses with min. of Rs.
200 per inspection and max. Rs. 2500 per year
Above Rs. 10 lacs upto Rs. 10 cr: Actual Expenses with min.Rs.500 max. ceiling
Rs.6000 per year
Above Rs. 10 cr : Actual expenses with a minimum of Rs. 10000 per visit
Project Appraisal Certificates : One time charges Rs. 15000/ Documentation Charges :
Clean-Not over Rs. 2 lac Rs. 100
-Above 2 lacs : 0.10% with min of Rs. 500 max Rs. 35000
Secured: Not over Rs. 2 lacs Rs. 100/Above Rs. 2 lacs : 0.15% with min. Rs.750 max.. 50000/ Mortgage charges : Slabs introduced for 3 mortgages; > 3 mortgages upto 6 mortgages
and > 6 mortgages depending upon sanctioned limit of less than 1 cr; 1 cr to 10 cr and
above 10 cr
Canara Bank
QUESTIONS
1.
Failure to create the security (EMT/second charge) shall attract penal/additional interest
It is %. Cir.270/2012
1%
2. Bank needs details of Income earned from

(Short term / Medium Term / Long
Term excluding Infrastructure loans
/
Long
Term
loans
including
Infrastructure Loans) Loans for the purpose of creating a Reserve under the
provisions of the Income Tax Act, 1961 and claim the deduction under the Income tax
Act. (Cir.70/2011)
Long Term loans including infrastructure loans.
Explanation: Long-term finance means any loan or advance which provide
for repayment along with interest thereof during a period of not less than 36 months.
Details of Income from term loans / advances to a. Industries, b. Agricultural Activity
(including allied business), c. Infrastructure facility and d. Housing loan for
construction or purchase of Residential houses are required.
3.
Processing Charges are not applicable to VSLs. However, PC as per schedule of

charges should be collected for VSL against third party deposits. True or false?
Cir.68/2010
True.
4. In the cases when different types of credit facilities are sanctioned to the same party, if
the credit proposal is processed at one time, the maximum processing charges of Rs
is applicable for short term Non Priority Sector loans, repayable in 12 months. However,
if the proposals are submitted and processed at different points of time, the ceiling is
applicable for each processing separately. Cir.337/2013
Rs 35.00 lacs(As per 391/2015 separate charges for FB and NFB has been done
away with)
5. In case of Working capital limits permitted for a period of more than one year,
(Upfront / yearly) basis Cir.337/2013
the Processing charges may be collected
Yearly
6. Processing charges at Rs
/- for each
securities shall be obtained. Cir.337/2013
Rs 100/-
occasion
of
substitution
of
shares
7. Wherever we are leaders in the consortium, the lead bank fee is to be collected on the
total fund based working capital credit limits from the consortium as a whole at the
rate of (0.10% / 0.25% / 0.50% / 0.75% / None of these) p.a. normally. Cir.337/2013
None of these. Correct answer: 0.30% with max.Rs 3 lacs upto Rs 10 cr. , 10 to
50 crores: 0.25% with min.Rs 3 lacs, Max-12.50 lacs, above 50 crores: 0.20%
Canara Bank
with min.Rs 12.5 lacs, max. Rs. 50 lacs

8. Consortium advances applicable service charges: Wherever branches/offices
extend entire non-fund based credit facilities under consortium on behalf of the
member banks, only
% of the consolidated fee collected on such non-fund based
limits is to be shared among all the consortium banks (including our Bank) retaining the
remaining commission towards service charges. Cir.337/2013
70%
9. Wherever the loan proceeds are required to be disbursed by making direct payment/s
to vendor/s, dealer/s etc., by way of DDs/POs with a view to ensuring the end use
thereof, such DDs/POs can be issued at par. This is not applicable in respect of which
of the following retail lending schemes? (a) Canara Vehicle (b) Housing Loans for
purchase of House/flat (c) Canara Rent (d) Canara Mortgage scheme. (RL Manual)
(c) & (d)
10. If the borrower does not utilise/avail the limit during the entire quarter, penal charges to
be levied for delayed submission of QOS/HOS statements are
. (Cir.7/2010)
Zero.
11. If the party maintains credit balance throughout the period (particular quarter),
penalty levied for delayed submission of QOS/HOS statements are . (Cir.7/2010)
Zero.
12. The Present Bank Rate is:
7.75%
13. For Adhoc Credit Facility, additional interest to be charged over and above applicable
rate of interest to the borrower (except in the case of export credit):
2%
14. In case of overdue adhoc facility, penal interest of
shall be collected.
2% above the ROI charged for such facility (i.e. normal interest + 2% for
adhoc facility + 2% overdue interest)
15. Base Rate is fixed by:
Individual Banks
16. For Priority Sector Loans, upto Rs 25,000/- Penal Interest applicable is:
NIL
17. In case of Non Priority loans, Penal interest concept is applicable for loans above
Rs 5000/18.. If TODs are regularized beyond 15 days, what is the penal interest to be levied:
2% irrespective of TOD amount
Canara Bank
19. In case of Educational Loans above Rs 25,000/- and upto Rs 2 lacs, the
applicable penal interest is :
NIL. (1% penal applicable if EL is sanctioned before 1.6.2001)
20. Maximum Penal Interest chargeable in a Loan Account :
2%
21. Processing charges on Non Priority Advances upto Rs 50,000/- repayable in 12
months is: Rs 250/- (cir 391/2015)
22. Processing charges for Non Priority Advances above Rs 50000/- upto Rs 2 lacs
repayable in 12 months is:
0.35% with minimum Rs 550/-(391/2015)
23. Processing charges for Non Priority Advances over 2 lacs, repayable in 12
months is: Rs 350/- per lakh, Min: Rs 1000/- Maximum Rs 35 lacs
24. Upfront fee for Term Loans NP:
Upto Rs. 50000
: Rs.250
>50000 upto 2 lakhs : 0.50% of the loan amount with min. Rs. 500/>2lakhs upto 25 cr
: 1.25% of loan amount
> 25 cr:
1% of loan amount Min. Rs. 30 lakhs and max. Rs. 75 lacs
25. Newly introduced charges on facilities :
Adhoc facility for a period not exceeding 15/30 days without linking to regularization
Annual review charges for TL above Rs. 1cr
Vetting of IM/TEV report of other Banks/FIs
Giving opinion on cash flows in DCCO extension
Fees for Waiver of project appraisal
Fee for operating Escrow/TRA
Providing Credit Information reports
Revision in repayment schedule
26.
Fees to be collected for issue of Project Appraisal Certificates :
Rs. 15000/- one time fee.
27. EMT Charges for Non Priority Loans Rs1 crore to Rs 10 crore are
Rs 20 per lac or part thereof Max Rs 15000
28. EMT charges for Non Priority Loans above Rs 10 crores Rs
Upto 3 mortgages Rs. 75 per lac min Rs.7500 max. Rs.25000
>3 mortgages upto 6 mortgages : Rs. 100 per lac min Rs. 10000 max. Rs. 35000/>6 mortgages :As applicable to > 3 mortgages plus Rs. 1000 per mortgage beyond 6
mortgages.
Canara Bank
29. Maximum amount of processing charges applicable for overdrawing permitted

under Adhoc credit facility for 15/30 days(clean/secured)
Normal processing charges as applicable shall be collected.
30. Documentation charges prescribed for Non Priority Loans are:
Documentation charges for Clean and secured not over Rs. 2 lacs limit: Rs. 100/Documentation Charges(All Limits including ST, ADHOC) Above 2 lacs
Clean Loans:0.10%. Min:Rs 500/- ; Max: Rs 35,000/-,
Secured: 0.15% withmin.Rs 750/- max.Rs 50,000/31. Commitment charges need not be levied if the credit limits are availed within months
from the date of sanction:
3 months. (Total limits (FB+NFB) > 10 Crores // To corporate borrowers only // 1%
pa on the committed line of credit and / or unutilized / un-availed sanctioned
WClimits or ST limit for WC purposes and also TL).
32. What are the godown charges for loans above Rs 2 lakhs ( Non Priority)
Godown charges
Godown Charges : Pledge: Upto Rs. 2 lacs Nil; > Rs. 2 lacs upto Rs. 10 lacs: Rs.
100 per inspection; Above Rs. 10 lacs Rs. 300 per inspection newly introduced
Other than Pledge : Limits upto and inclusive of Rs. 5000 : Nil
>5000 upto and inclusive of Rs. 25000/- : Rs. 50 per inspection with max. of Rs. 750 pa
Above 25000 upto and inclusive of Rs. 2 lacs: Actual expenses incurred with a min of
Rs. 100 per inspection and max. of Rs. 1500 per year
Above Rs. 2 lakhs upto and inclusive of Rs. 10 lacs: Actual expenses with min. of Rs.
200 per inspection and max. Rs. 2500 per year
Above Rs. 10 lacs upto Rs. 10 cr: Actual Expenses with min.Rs.500 max. ceiling
Rs.6000 per year
Above Rs. 10 cr : Actual expenses with a minimum of Rs. 10000 per visit
Canara Bank
34. Commission on solvency certificate is:

0.10% with minimum of Rs 500/- and maximum Rs 25,000/- per certificate
35. Rate Of Interest on exposures above Rs 2.00 crore are to be based on : a) Scoring
Norms b) Risk Rating-Internal rating c) Risk Rating External rating d) Risk
Rating- Internal/External (cir 29/2011)
d) Risk Rating Internal/External
36. Maximum Lending Rate for Short Term/Working Capital Loans is:
7.00% over Base Rate i.e. 16.65% at present (cir 559/2015)
37. Clean OD rate of interest is :
7.00% over Base Rate i.e. 16.65% at present (448/2015)
38. What is the present rate of interest for ECNOS (Export Credit Not Otherwise Specified)
14.65% (cir 559/2015)
39. In respect of loans and advances under the Base Rate system, the powers for
permitting reduction in ROI delegated to GM(HO) for accounts upto GM(HO) Powers:
Reduction upto a maximum of 1.50% p.a. from applicable rate, subject to the
ultimate lending rate not falling below Base Rate plus 1.75%. However, the
same is further based on Risk Rating (Please refer HO Cir 422/2014)
40. What is the rate of interest on Export Credit against incentives receivable from Govt.
Upto days, Beyond 90 days:
Upto 90 days: 10.15%, Beyond 90 days: ECNOS (Cir 448/2015)
IV. PRIORITY SECTOR LENDING

Targets:
Priority Sector Advances: 40% of Adjusted Net Bank Credit (ANBC)or CE-OBS
exposure whichever is higher.
The computation of target achievement will be based on the ANBC or CE-OBS
Exposure, whichever is higher, as on the corresponding date of the preceding year.
ANBC denotes the outstanding Bank Credit in India minus bills rediscounted with
RBI and other approved Financial Institutions plus permitted non SLR
bonds/debentures under Held to Maturity (HTM) category plus other investments
eligible to be treated as part of priority sector lending (e.g. investments in securitised
assets).
Deposits with RIDF ,NABARD, NHB and SIDBI in lieu of non-achievement of priority
sector targets will form part of ANBC.
Advances extended in India against the incremental FCNR (B)/NRE deposits,
qualifying for exemption from CRR/SLR requirements shall be excluded from the
ANBC for computation of priority sector lending targets, till their repayment. The
eligible amount for exemption on account of issuance of long-term bonds for
infrastructure and affordable housing shall also be excluded from the ANBC for
computation of priority sector lending targets.
Priority Sector Norms ( Revised w.e.f. 23.04.15 )
Segment
Revised
Agriculture
Mandated Targets
18 percent of ANBC or CE (OBS Exposure), whichever is

higher. Within the 18 percent target for agriculture, a target
of 8 percent of ANBC or CE (OBS Exposure), whichever is
higher is prescribed for Small and Marginal Farmers to be
achieved in a phased manner i.e. 7% by March 2016 and
8% by March 2017.
Direct/Indirect classification has been dispensed with. Now

there will be three categories;
Farm Credit (which will include Short Term crop
loans and medium/long term credit to farmers.
Agriculture Infrastructure
Ancillary Activities
Loans to Food and Upto an aggregate sanctioned limit of Rs.100 cr per
Agro
Processing borrower from the banking system under AgricultureUnits
Ancillary activities
Classification
Cold
Godowns
Storage/ Loans for construction of storage facilities (warehouses,

market yards, godowns and silos) including cold storage
units/ cold storage chains designed to store agriculture
produce/products, irrespective of their location Up to an
aggregate sanctioned limit of Rs.100 crore per borrower
under Agriculture Infrastructure
Loans to Primary Agriculture-Ancillary activities.

agriculture
cooperatives
societies/FSS/LAMP
S
i) Loans to MFI for
on-lending to Agri.
ii)Outstanding
deposits, under
RIDF, Warehouse
Infrastructure Fund,
Short term Cooperative Rural
Credit Refinance
Fund and Short
Term RRB Fund with
NABARD.
Micro, Small & Medium Enterprises (MSMEs):

Segment
Revised
Mandated Targets for 7.5 percent of ANBC or CE (OBS Exposure),, whichever is

Loans to
Micro higher to be achieved in a phased manner i.e. 7 per cent
Enterprises
by M arch 2016 and 7.5 per cent by March 2017.
The current sub-categorization/ sub-target within the
definition of micro enterprises in the existing guidelines is
dispensed with.
Classification
Micro, Small & Medium Enterprises (MSMEs)
Maximum ceiling on Micro & Small Enterprises- upto ` 5 crore per unit and
loan
Limit
under Medium Enterprises upto `10 crore per unit investment in
Services Enterprises
which
can
be Equipments.
considered
under
Priority
Khadi And
industries
(KVIC)
Village Eligible for classification under the sub-target of 7 percent

Sector /7.5 percent prescribed for Micro Enterprises under priority
sector.
Education Loans
Loans to individuals for educational purposes including

vocational courses upto `10 lakh irrespective of the
sanctioned amount will be considered as eligible for
priority sector.
Housing loans to
Individuals for
Construction/
purchase of a dwelling
unit per family
a) Metro centres with population above 10 lakh: The

overall cost of the dwelling unit should not exceed `35 lakh
and loan Limit up to `28 lakh.
Bank Loans to
housing projects
exclusively for
economically weaker
sections and low
income groups.
Total cost up to `10 lakh per dwelling unit with annual

family income up to `200000, irrespective of the location
Loans to Housing
Finance Companies
Loans to HFCs for on lending up to an aggregate loan

amount of `10.00 lakh per borrower without any stipulation
on Rate of interest charged to ultimate borrower.
Priority Housing-loan
for repairs to
damaged houses
`2 lakh- Other centres, `5 lakh- Metro Centres
General Credit Card
Credit outstanding under General Credit Cards (including

Artisan Credit Card, Laghu Udyami Card, Swarojgar
Credit Card, and Weavers Card etc. in existence and
catering to the non-farm entrepreneurial credit needs of
individuals should be classified under MSME sector.
b)Other centres with population less than 10 lakh: The

overall cost of the dwelling unit should not exceed `25 lakh
and loan Limit up to `20 lakh
Other Priority
Loans to Distressed `100,000/- per borrower to prepay their debt to nonperson(other
than institutional lenders.
farmers)
Overdraft against No Upto `5,000/- under Pradhan Mantri Jan-DhanYojana
frill accounts
(PMJDY) accounts provided the borrowers household annual
income does not exceed `100,000/- for rural areas and
`1,60,000/- for non-rural areas.
Export Credit
Incremental export credit over corresponding date of the

preceding year, up to 2 percent of ANBC or CE (OBS
Exposure), whichever is higher, effective from April 1, 2015
subject to a sanctioned limit of `25 crore per borrower to
units having turnover of up to `100 crore shall be reported
under Export Credit under Priority sector.
Priority sector-New addition

Soil conservation and watershed development.
Plant tissue culture and agri-biotechnology, seed production,
production of bio-pesticides, bio-fertilizer, and vermi
composting.
For the above loans, an aggregate sanctioned limit of `100
crore per borrower from the banking system, will apply.
Agriculture
Loans for Food and Agro Processing units upto an aggregate
Ancillary
sanctioned limit of Rs 100 Cr is eligible to be classified under
Services
Agriculture- Ancillary activities
Micro, Small and MSME units shall continue to enjoy the priority sector lending
status up to three years after they grow out of the MSME
Medium
category concerned.
Enterprises
Agriculture
Infrastructure
Social
infrastructure
Bank loans up to a limit of `5 crore per borrower for building

social infrastructure for activities namely schools, health care
facilities, drinking water facilities and sanitation facilities in Tier II
to Tier VI centres.(Centres with population less than 1 lakh)
Renewable
Energy
Bank loans up to a limit of `15 crore to borrowers for purposes

like solar based power generators, biomass based power
generators, wind mills, micro-hydel plants and for nonconventional energy based public utilities viz. street lighting
systems, and remote village electrification. For individual
households, the loan limit will be ` 10 lakh per borrower.
Major Exclusions:
Loans to corporate farmers, farmers' producer organizations/ companies of
individual farmers, partnership firms and co-operatives of farmers directly engaged
in Agriculture and Allied Activities, with an aggregate limit of more than Rs.2 crore
per borrower for specific purposeslike Agriculture Infrastructure and Ancillary
Activities. Excluded from Agriculture but may be included under MSME (Service /
Manufacturing) if eligible, based on investment in P&M/Equipments/Limits etc. or
may classify under Agriculture-Non Priority.
Loans up to Rs.5 crore per borrower to dealers /sellers of fertilizers, pesticides,
seeds, cattle feed, poultry feed, agricultural implements and other inputs for
agriculture and allied activities. Excluded from Agriculture but could be included
under MSME (Service / Manufacturing) based on investment in
P&M/Equipments/Limits etc.
Loans sanctioned to RRBs for on-lending to agriculture and allied activities.
All the priority sector loans to individual women beneficiaries upto `100,000/- per
borrower has been included as a part of Weaker section credit.
Computation of Adjusted Net Bank Credit:
Bank credit in India (As prescribed in item no. of Form a (Special I
Return as on March 31st) under section 42 (2) of the RBI Act, 1934
Bills Rediscounted with RBI and other approved
Institutions
Financial II
Net Bank Credit (NBC) For the purpose of priority sector only.
III(I-II)
Investment in non SLR categories under HTM categories, other IV

investment eligible to be treated as priority sector, outstanding
deposit under RIDF and other eligible fund with NABARD/ NHB,
SIDBI on account of Priority Sector shortfall, Outstanding PSLCs.
Eligible amount for exemptions on issuance of long-term bonds for V
infrastructure and affordable housing.
Eligible advances extended in India against the incremental VI
FCNR(B)/NRE deposits, qualifying for exemption from CRR/SLR
requirements
Adjusted Net Bank Credit (ANBC)
III+IV-V-VI
Segments of Priority Credit:

1.Agriculture: Farm Credit, Agriculture Infrastructure, Ancilliary activities
FARM CREDIT:
A. Loans to individual farmers [including Self Help Groups (SHGs) or Joint Liability
Groups (JLGs), i.e. groups of individual farmers, provided banks maintain
disaggregated data of such loans], directly engaged in Agriculture and Allied Activities,
viz., dairy, fishery, animal husbandry, poultry, bee-keeping and sericulture.
i) Crop loans to farmers, which will include traditional/non-traditional plantations and
horticulture, and, loans for allied activities.
(ii) Medium and long-term loans to farmers for agriculture and allied activities (e.g.
purchase of agricultural implements and machinery, loans for irrigation and other
developmental activities undertaken in the farm, and developmental loans for allied
activities.)
(iii) Loans to farmers for pre and post-harvest activities, viz., spraying, weeding,
harvesting, sorting, grading and transporting of their own farm produce.
(iv) Loans to farmers up to Rs.50 lakh against pledge/hypothecation of agricultural
produce (including warehouse receipts) for a period not exceeding 12 months.
(v) Loans to distressed farmers indebted to non-institutional lenders.
(vi) Loans to farmers under the Kisan Credit Card Scheme.
(vii) Loans to small and marginal farmers for purchase of land for agricultural purposes.
B. Loans to corporate farmers, farmers' producer organizations/companies of individual
farmers, partnership firms and co-operatives of farmers directly engaged in Agriculture
and Allied Activities, viz., dairy, fishery, animal husbandry, poultry, bee-keeping and
sericulture up to an aggregate limit of `2 crore per borrower.
(i) Crop loans to farmers which will include traditional/non-traditional plantations and
horticulture, and, loans for allied activities.
(ii) Medium and long-term loans to farmers for agriculture and allied activities (e.g.
purchase of agricultural implements and machinery, loans for irrigation and other
developmental activities undertaken in the farm, and developmental loans for allied
activities.)
(iii) Loans to farmers for pre and post-harvest activities, viz., spraying, weeding,
harvesting, sorting, grading and transporting of their own farm produce.
(iv) Loans up to Rs.50 lakh against pledge/hypothecation of agricultural produce
(including warehouse receipts) for a period not exceeding 12 months.
AGRICULTURE INFRASTRUCTURE:
Loans for construction of storage facilities (warehouses, market yards, godowns
and silos) including cold storage units/ cold storage chains designed to store
agriculture produce/products, irrespective of their location.
Soil conservation and watershed development.
Plant tissue culture and agri-biotechnology, seed production, production of biopesticides, bio-fertilizer, and vermi composting.
For the above loans, an aggregate sanctioned limit of `100 crore per borrower from
the banking system, will apply.
ANCILLIARY ACTIVITIES:
(i) Loans up to Rs.5 crore to co-operative societies of farmers for disposing of the
produce of members.
(ii) Loans for setting up of Agriclinics and Agribusiness Centres.
(iii) Loans for Food and Agro-processing up to an aggregate sanctioned limit of `100
crore per borrower from the banking system.
(iv) Bank loans to Primary Agricultural Credit Societies (PACS), Farmers Service
Societies (FSS) and Large-sized Adivasi Multi-Purpose Societies (LAMPS) for onlending to agriculture.
(v) Loans sanctioned by banks to MFIs for on-lending to agriculture sector as per the
conditions specified in paragraph IX of this circular
(vi) Outstanding deposits under RIDF and other eligible funds with NABARD on account
of priority sector shortfall.
(VII) Loans to Custom Service Units managed by individuals, institutions or
organizations who maintain a fleet of tractors, bulldozers, well-boring equipment,
threshers, combines etc., and undertake farm work for farmers on contract basis can
be classified under Agriculture Ancillary activities. (377/2015)
For the purpose of computation of 7 %/ 8% target, Small and Marginal Farmers
will include the following: Farmers with landholding of up to 1 hectare are considered as Marginal Farmers.
Farmers with a landholding of more than 1 hectare and upto 2 hectares are
considered as Small Farmers.
Landless agricultural labourers, tenant farmers, oral lessees and share-croppers.
Loans to Self Help Groups (SHGs) or Joint Liability Groups (JLGs), i.e. groups of
individual Small and Marginal farmers directly engaged in Agriculture and Allied
Activities, provided banks maintain disaggregated data of such loans.
Loans to farmers' producer companies of individual farmers, and co-operatives of

farmers directly engaged in Agriculture and Allied Activities, where the membership
of Small and Marginal Farmers is not less than 75 per cent by number and whose
land-holding share is also not less than 75 per cent of the total land-holding.
Micro and small enterprises
The limits for investment in plant and machinery/equipment for manufacturing /
service enterprise, as notified by Ministry of Micro, Small and Medium Enterprises,
are as under:Manufacturing Sector
Enterprises
Investment in plant and machinery
Micro Enterprises
Does not exceed `25 lakh
Small Enterprises
More than `25 lakh but does not exceed `500

lakh
Medium Enterprises
More than `500 lakh but does not exceed ten

crore rupees
Service Sector
Enterprises
Investment in equipment
Micro Enterprises up to ` 5 Does not exceed `10 lakh

Crores
Small Enterprises up to
Crores
`5 More than `10 lakh but does not exceed `200

lakh
Medium Enterprises up to `10.0 More than `200 lakh but does not exceed `500
crores
lakh
Service Enterprises
Bank loans up to `5 crore per unit to Micro and Small Enterprises and `10 crore to
Medium Enterprises engaged in providing or rendering of services and defined in
terms of investment in equipment under MSMED Act, 2006.
Other Finance to MSMEs
(i) Loans to entities involved in assisting the decentralized sector in the supply of inputs
to and marketing of outputs of artisans, village and cottage industries.
(ii) Loans to co-operatives of producers in the decentralized sector viz. artisans, village
and cottage industries.
(iii) Loans sanctioned by banks to MFIs for on-lending to MSME sector ( conditions
apply) .
(iv) Credit outstanding under General Credit Cards (including Artisan Credit Card,
Laghu Udyami Card, Swarojgar Credit Card, and Weavers Card etc. in existence and
catering to the non-farm entrepreneurial credit needs of individuals).
(v) Outstanding deposits with SIDBI on account of priority sector shortfall.
Export Credit
The Export Credit extended as per the details below would be classified as priority
sector.
i) Incremental export credit over corresponding date of the preceding year, up to 2
percent of ANBC or Credit Equivalent Amount of Off-Balance Sheet Exposure,
whichever is higher, effective from April 1, 2015 subject to a sanctioned limit of `25 crore
per borrower to units having turnover of up to `100 crore.
ii) Export credit includes pre-shipment and post shipment export credit (excluding offbalance sheet items) as defined in Master Circular on Rupee / Foreign Currency Export
Credit and Customer Service to Exporters issued by our Department of Banking
Regulation.
Housing:
(i) Loans to individuals up to `28 lakh in metropolitan centres (with population of ten
lakh and above) and loans up to `20 lakh in other centres for purchase/construction of
a dwelling unit per family provided the overall cost of the dwelling unit in the
metropolitan centre and at other centres should not exceed `35 lakh and `25 lakh
respectively. The housing loans to banks own employees should be excluded.
As housing loans which are backed by long term bonds are exempted from
ANBC, banks should either include such housing loans to individuals up to `28
lakh in metropolitan centres and `20 lakh in other centres under priority sector or
take benefit of exemption from ANBC, but not both.
(ii) Loans for repairs to damaged dwelling units of families up to `5 lakh in metropolitan
centres and up to `2 lakh in other centres.
(iii) Bank loans to any governmental agency for construction of dwelling units or for slum
clearance and rehabilitation of slum dwellers subject to a ceiling of `10 lakh per dwelling
unit.
(iv) The loans sanctioned by banks for housing projects exclusively for the purpose of
construction of houses for economically weaker sections and low income groups, the
total cost of which does not exceed `10 lakh per dwelling unit. For the purpose of
identifying the economically weaker sections and low income groups, the family income
limit of `2 lakh per annum, irrespective of the location, is prescribed.
(v) Bank loans to Housing Finance Companies (HFCs), approved by NHB for their
refinance, for on-lending for the purpose of purchase/construction/reconstruction of
individual dwelling units or for slum clearance and rehabilitation of slum dwellers,
subject to an aggregate loan limit of `10 lakh per borrower.
The eligibility under priority sector loans to HFCs is restricted to five percent of
the individual banks total priority sector lending, on an ongoing basis. The
maturity of bank loans should be co-terminus with average maturity of loans
extended by HFCs. Banks should maintain necessary borrower-wise details of the
underlying portfolio.
(vi) Outstanding deposits with NHB on account of priority sector shortfall.
Social infrastructure
Bank loans up to a limit of `5 crore per borrower for building social infrastructure for
activities namely schools, health care facilities, drinking water facilities, lending to
construction / refurbishment of household toilets and household level water
improvements in Tier II to Tier VI centres(Population less than 1 lakh). Bank credit to
MFIs extended for on-lending for water and sanitation to individuals and also to
members of SHGs / JLGs may be categorized as priority sector under Social
Infrastructure,
Renewable Energy
Bank loans up to a limit of `15 crore to borrowers for purposes like solar based power
generators, biomass based power generators, wind mills, micro-hydel plants and for
non-conventional energy based public utilities viz. street lighting systems, and remote
village electrification. For individual households, the loan limit is `10 lakh per borrower.
Others:
Loans not exceeding `50,000/- per borrower provided directly by banks to individuals
and their SHG/JLG, provided the individual borrowers household annual income in rural
areas does not exceed `100,000/- and for non-rural areas it does not exceed `1,60,000/-
Loans to distressed persons not exceeding `100,000/- per borrower to prepay their debt
to non-institutional lenders.
Overdrafts extended by banks upto `5,000/- under Pradhan Mantri Jan-DhanYojana
(PMJDY) accounts provided the borrowers household annual income does not exceed
`100,000/- for rural areas and `1,60,000/- for non-rural areas.
Loans sanctioned to State Sponsored Organisations for Scheduled Castes/ Scheduled
Tribes for the specific purpose of purchase and supply of inputs and/or the marketing of
the outputs of the beneficiaries of these organisations.
Investments by banks in securitised assets
(i) Investments by banks in securitised assets, representing loans to various categories
of priority sector, except 'others' category, are eligible for classification under respective
categories of priority sector depending on the underlying assets provided:
(a) the securitised assets are originated by banks and financial institutions and are
eligible to be classified as priority sector advances prior to securitisation and fulfil the
Reserve Bank of India guidelines on securitisation.
(b) the all inclusive interest charged to the ultimate borrower by the originating entity
should not exceed the Base Rate of the investing bank plus 8 percent per annum.
The investments in securitised assets originated by MFIs, which comply with the
guidelines in Paragraph IX of this circular are exempted from this interest cap as there
are separate caps on margin and interest rate.
(ii) Investments made by banks in securitised assets originated by NBFCs, where the
underlying assets are loans against gold jewellery, are not eligible for priority sector
status.
Transfer of Assets through Direct Assignment /Outright purchases
(i) Assignments/Outright purchases of pool of assets by banks representing loans under
various categories of priority sector, except the 'others' category, will be eligible for
classification under respective categories of priority sector provided:
(a) the assets are originated by banks and financial institutions which are eligible to be
classified as priority sector advances prior to the purchase and fulfil the Reserve Bank
of India guidelines on outright purchase/assignment.
(b) the eligible loan assets so purchased should not be disposed of other than by way of
repayment.
(c) the all inclusive interest charged to the ultimate borrower by the originating entity
should not exceed the Base Rate of the purchasing bank plus 8 percent per annum.
The Assignments/Outright purchases of eligible priority sector loans from MFIs, which
comply with the guidelines are exempted from this interest rate cap as there are
separate caps on margin and interest rate.
(ii) When the banks undertake outright purchase of loan assets from banks/ financial
institutions to be classified under priority sector, they must report the nominal amount
actually disbursed to end priority sector borrowers and not the premium embedded
amount paid to the sellers.
iii)Purchase/ assignment/investment transactions undertaken by banks with NBFCs,
where the underlying assets are loans against gold jewellery, are not eligible for priority
sector status.
Inter Bank Participation Certificates
Inter Bank Participation Certificates (IBPCs) bought by banks, on a risk sharing basis,
are eligible for classification under respective categories of priority sector, provided the
underlying assets are eligible to be categorized under the respectivecategories of
priority sector and the banks fulfil the Reserve Bank of India guidelines on IBPCs.
Priority Sector Lending Certificates
The outstanding priority sector lending certificates (after the guidelines are issued in this
regard by the Reserve Bank of India) bought by the banks will be eligible for
classification under respective categories of priority sector provided the assets are
originated by banks, and are eligible to be classified as priority sector advances and
fulfil the Reserve Bank of India guidelines on priority sector lending certificates.
Bank loans to MFIs for on-lending
(a) Bank credit to MFIs extended for on-lending to individuals and also to members of
SHGs / JLGs will be eligible for categorisation as priority sector advance under
respective categories viz., Agriculture, Micro, Small and Medium Enterprises, and
'Others', as indirect finance, provided not less than 85 percent of total assets of MFI
(other than cash, balances with banks and financial institutions, government securities
and money market instruments) are in the nature of qualifying assets. In addition,
aggregate amount of loan, extended for income generating activity, should be not less
than 50 percent of the total loans given by MFIs.
(b) A qualifying asset shall mean a loan disbursed by MFI, which satisfies the following
criteria:
(i) The loan is to be extended to a borrower whose household annual income in rural
areas does not exceed `1,00,000/- while for non-rural areas it should not exceed
`1,60,000/-.
(ii) Loan does not exceed `60,000/- in the first cycle and ` 100,000/- in the subsequent
cycles.
(iii) Total indebtedness of the borrower does not exceed ` 1,00,000/-.
(iv) Tenure of loan is not less than 24 months when loan amount exceeds `15,000/- with
right to borrower of prepayment without penalty.
(v) The loan is without collateral.
(vi) Loan is repayable by weekly, fortnightly or monthly installments at the choice of the
borrower.
(c) Further, the banks have to ensure that MFIs comply with the following caps on
margin and interest rate as also other pricing guidelines, to be eligible to classify these
loans as priority sector loans.
(i) Margin cap: The margin cap should not exceed 10 percent for MFIs having loan
portfolio exceeding `100 crore and 12 percent for others. The interest cost is to be
calculated on average fortnightly balances of outstanding borrowings and interest
income is to be calculated on average fortnightly balances of outstanding loan portfolio
of qualifying assets.
(ii) Interest cap on individual loans: With effect from April 1, 2014, interest rate on
individual loans will be the average Base Rate of five largest commercial banks
byassets multiplied by 2.75 per annum or cost of funds plus margin cap, whichever is
less. The average of the Base Rate shall be advised by Reserve Bank of India.
(iii) Only three components are to be included in pricing of loans viz., (a) a processing
fee not exceeding 1 percent of the gross loan amount, (b) the interest charge and (c)
the insurance premium.
(iv) The processing fee is not to be included in the margin cap or the interest cap.
(v) Only the actual cost of insurance i.e. actual cost of group insurance for life, health
and livestock for borrower and spouse can be recovered; administrative charges may
be recovered as per IRDA guidelines.
(vi) There should not be any penalty for delayed payment.

(vii) No Security Deposit/ Margin are to be taken.
(d) The banks should obtain from MFI, at the end of each quarter, a Chartered
Accountants Certificate stating, inter-alia, that the criteria on (i) qualifying assets, (ii) the
aggregate amount of loan, extended for income generation activity, and (iii) pricing
guidelines are followed.
MSMEs Inclusion of additional activities (Cir 119/2011,7/2015)
Manufacturing:
Seed processing (for genetic enhancement) (Involving collection of germplasm,
cleaning, gravity separation, chemical treatment etc.)
Composite
unit
of
Poultry
with
Chicken
(Meat)
Processing
[Poultry Farm without Chicken (Meat) Processing shall not be classified either
as manufacturing or as service enterprise because this a farming activity]
Cotton Ginning
Power Generation by conventional as well as by non-conventional processes
Services
Medical Transcription Service, Production of TV Serial and other TV Programmes,
Ripening of Raw Fruits under controlled conditions, Service Rating Agency
Retreading of Tyre
Infrastructure and Real Estate activities (Enterprise should indicate in brackets the
specific activities, it dealt with, concerning infrastructure and Real Estate)
Power (Electrical) Distribution service
Warehouse, Godown and Cold Storage services
Weaker Sections (Cir no.235/2015)

Target 10 % of ANBC or 25% of Priority.(Introduced in 1980 as per recommendations of
Krishnaswami Committee)
SF, MF upto 5 acres lands

Aritsans, village and cottage industries, with limits upto `100,000/Loan to individual women benificiary, with limits upto `100,000/NULM/NRLM/SRMS beneficiaries
SC/ST beneficiaries(April & October is celebrated as SC/ST Month)
DIR beneficiaries
SHGs
Distressed farmers indebted to non-institutional lenders
Distressed persons other than farmers to prepay their debt to non-institutional
lenders.
MINORITY COMMUNITIES as notified by GOI from time to time.
Person with Disabilities.
Overdrafts upto `5000.00 under PMJDY accounts provided the borrowers

household annual income does not exceed `1.00 lakh for rural areas and `1.60
lakhs for non-rural areas.
Lending to Minority Communities (CIR 197/07, 56/2008)
Ministry of Finance, GOI has announced a list of 338 miinority identified towns
having substantial minority population to improve credit flow to minorities.. This is in
addition to 121 minority concentration districts.
PSR 7 Minority Community statement periodicity changed from half yearly to
quarterly last friday. Branches to submit with 5 days of the end of the quarter and
Circle to HO within 10 days from the end of the quarter.
Loan under NMDFC National Minorities Development and Finance CorporationBank Finance 60%, NMDFC-25%, State-10% and beneficiary-5% (Margin Money
Scheme)
PSR 67 Monthly Statement On Sensitive Sector. Due date(Cir 336/09, 402/09):
last day of every month, before 5th of succeeding month
Ministry of Minority Affairs, GOI has notified Jain, Muslim, Christian, Sikh, Parsi
(Zoroastrians), Buddhist as Minority community.
Issue of Acknowledgement of Loan Applications

Banks should provide acknowledgement for loan applications received under
priority sector loans.
The proposals should be attended within the time limit prescribed.
Current norms on time limit approved by the Board is as under:
Sl.
No Nature of credit facilities
1
2
3
4.
Time norms
Sanctions Sanctions
at branch at Circle
15 days
NA
Loans upto Rs.25000/Kisan Credit Card Branch

15 days
Powers
Other Priority Sector advances
(i) Loans / advances upto
2 weeks
Rs.25,000/(ii) Loans / advances over
30 days
Rs.25,000/Loans to MSMEs
Loans/
Micro and Small
advances upto Medium
Rs.25000/-
2 weeks
2 weeks
Sanctions
at HO
NA
NA
NA
NA
NA
45 days
8- 9 weeks
Not Applicable
Beyond
Rs.25000/upto Rs.5
lakhs
Beyond Rs.5
lakhs/- upto
Rs.25 lakhs
Above Rs.25
lakhs
Export Credit
(i) Sanction of
credit limits
Micro and Small

Medium
2 weeks
4 weeks
2 weeks
4 weeks
2 weeks
4 weeks
Micro and Small

Medium
4 weeks
30days
4 weeks
45days
4 weeks
45days
Micro and Small

Medium
8 weeks
30days
8 weeks
45days
8 weeks
8 weeks
fresh / enhanced 30 days

(25 days)
30 days
(ii) Renewal of existing credit limits
(15 days)
(iii) Sanction of adhoc credit facilities
(Days in brackets indicate the
15 days
maximum
time
frame
for
(7 days)
sanction under Gold Card
Scheme)
Advances under Sole Banking,
Multiple Banking Arrangement,
consortium and other than the
above [(1) to (4)] the credit
proposals shall be disposed off
within the time frame as stated
hereunder:
(i) Sanction of fresh / enhanced 30 days
credit limits
(30 days)
30 days
(ii) Renewal of existing credit limits
(30 days)
(iii) Sanction of adhoc credit
facilities. (Days in brackets
30 days
indicate the maximum time
(15 days)
frame for sanction of export
credit limits)
45 days
(25 days)
30 days
(15 days)
45 days
(25 days)
30 days
(15 days)
15 days
(7 days)
15 days
(7 days)
45 days
(45 days)
45 days
(30 days)
60 days
(45 days)
45 days
(30 days)
30 days
(15 days)
30 days
(15 days)
QUESTIONS ON PRIORITY SECTOR LENDING

1. Mandatory targets under Priority Sector for Domestic Banks in India are:
a) 40% of outstanding credit of previous year
b) 33% of outstanding credit of previous year
c) 33% of ANBC
d) 40% of ANBC
2. Targets of Micro Enterprises within mandatory Priority sector target is:
a) 40% of ANBC
b) 25% of ANBC
c) 7.5% of ANBC
d) None of the above
3. What constitutes Priority Sector under MSME segment ?
a) Micro Enterprises
b) Micro & Small Enterprises
c) Medium Enterprises
d) All of the above
e) A & B above
4. Criteria for classification of an enterprise as Micro, Small or Medium is based on
the:
a) Total turnover of the enterprise
b) Investment in P & M / equipment
c) Total profitability of the enterprise
d) Original cost of investment in P&M / equipment
5. Non achievement of Priority Sector targets attracts
a) Penal intt @ 6%
b) Increased provisioning
c) Accelerated provisioning
d) Investment of shortfall as advised by RBI
6. Limits to Retail Traders upto Rs _____to be classified under priority sector-MSE
a) 20 lacs
b) 100 lacs
c) 200 lacs
d) 500 lacs
7. Limits to Whole sale Traders upto Rs_____to be classified under priority sectorMSE
a) 50 lacs
b) 100 lacs
c) 200 lacs
d) 500 lacs
8. Lending to which of the following activities is part of priority sector (1) agriculture
(2) micro & small enterprises (3) renewable energy (4) social infrastructure (5)
export credit
a) 1 to 5 all
b) 1 to 4 only
c) 1, 2 & 4 only
d) 1,2 3 & 5 only
9. Priority sector targets are 40% of (a) adjusted net bank credit (b) credit
equivalent of OBS exposure (c) which ever is lower (d) which ever is higher
e) Only a
f) A and b both
g) A, b & c together
h) A, b & d together
10. Agriculture advances within the overall priority sector lending target should be
________ of ANBC or CEOBSE which ever is hgher for ________Banks
a) 18%, domestic & foreign banks with 20 or more branches
b) 4.5 % , domestic banks and foreign banks with 20 or more branches
c) 18%, domestic and foreign banks with less than 20 branches
d) 18% , for all categories of banks.
11. Lending target for weaker section with in the priority sector are ___of ANBC or
CEOBSE whichever is higher.
a) 10%
b) 15%
c) 25%
d) 15%
12. Lending targets for weaker section within the priority sector are _______of total
priority sector lending.
a) 10%
b) 25%
c) 40%
d) None of the above, only as % of ANBC
13. What is the lending target in priority sector for for small and marginal farmers
within agriculture.
a) 8% of ANBC
b) 7% of ANBC
c) 8% of agriculture loans
d) 7% of agriculture loans
14. What is the lending target in priority sector for micro enterprises ?
a) 7.5% of ANBC
b) 7% of ANBC
c) 8% of ANBC
d) 7% Oof MSE loans
15. What ils the target for incremental export credit over corresponding date of
preceding year, for domestic banks under priority sector ?
a) 2% of ANBC or CEOBSE
b) 2.5% of ANBC or CEOBSE
c) 2.5% of priority sector loans
d) 2.5% of total bank credit.
16. Amount deposited by a bank in lieu of shortfall in achievement of priority sector
target in a fund managed by National Housing Bank
will be part of
_______within priority sector.
a) Agriculture loans
b) Housing loans
c) MSME loans
d) None of the above, as it is a non-priority sector investment.
17. In case of DRI advances, which of the following target is correct ?
a) 1% of the outstanding advances of the previous year.
b) 2/3rd credit should go to SC/ST
c) 40% advance should be through rural/semi-urban branches
d) 40% advances to SC/ST and 2/3rd should be through rural & semi-urban
branches.
e) A, b & c all
18. Domestic banks are required to deposit in RIDF with NABARD, the shortfall in
respect of :
a) Agriculture advances target of 18%
b) Priority sector target of 40%.
c) Weaker section advances of 10%
d) A,b,c
e) A & b only
19. The period of deposit and interest rate for deposit with RIDF and SEDF are fixed
by :
a) NABARD in case of RIDF
b) SIDBI in case of SEDF
c) RBI in both the cases
d) Ministry of Finance
20. Which is not included for achieving weaker section loan targets in priority
sector.?
a) Small farmers
b) NRLM loanee
c) Loans upto 100000 to women beneficiaries
d) Loans to distressed poor for pre-payment to non-institutional lenders

e) PMEGP advances.
21. Which of the following target is not correctly matched as percentage of priority
sector:?
a) Agriculture 45%
b) Weaker Section - 25%
c) DRI 1%
d) Housing loan to Housing Finance Companies for onlending 5%
22. Commercial Banks are to compute their obligation to provide finance for housing
at ______of their _______as at the last ________of March of previous year.
a) 3%, total deposit, Friday
b) 5%, total credit, reporting Friday
c) 3%, incremental deposit, reporting Friday
d) 3%, incremental credit, Friday
e) 3%, ANBC, Friday
23. For achieving target for advances to women enterprises, a women enterprise
means where in addition to management by women, the contribution of women in
the capital of the business activity is not less than:
a) 26%
b) 49%
c) 51%
d) 75%
24. What ils the priority sector target for RRBs with reference to their ANBC.
a) 32%
b) 40%
c) 60%
25. Loans to Custom Service Units managed by individuals or entities who maintain
a fleet of farm equipments and undertake farm work on contract is excluded from
Agriculture but could be included in MSME based on investment.
a) True
b) False
26. Loans to RRBs for on-lending to agriculture & allied activities is to be included in
Agriculture-priority
a) True
b) False
27. To ensure continuous flow of credit to priority sector, monitoring of priority sector
lending compliance of banks will be done on a:
a) Monthly basis
b) Quarterly basis
c) Half yearly basis

d) Annual basis
28. Loans to Food & Agro Processing units up to an aggregate sanctioned limit of
Rs.______per borrower should be classified under_________.
a) 5 crores, Agriculture Infrastructure
b) 15 crores, MSME
c) 100 crores, Agriculture Infrastructure
d) 100 crores, Agriculture Ancillary activities
29. What will be the classification of an Education Loan of Rs 25 lacs for overseas
studies.
a) Entire amount under priority
b) Entire amount under Non priority
c) Rs 20 lacs under Priority and balance under Non priority
d) Rs 10 lacs under priority and balance under non priority
30. A Khadi & Village Industry unit having original investment in Plant & Machinery
of Rs 525 lac should be classified under:
a) Micro Enterprises
b) Small Enterprises
c) Medium Enterprises
d) Large Enterprises
31. Bank loans up to Rs _____ per borrower for building social Infrastructure
activities like health care, sanitation or water facilities in centres with populations
less than_________ lacs can be classified under Priority Social Infrastructure.
a) 2 crores, 1 lac
b) 5 crores, 1 lac
c) 15 crores, 10 lacs
d) 100 crores, 10 lacs
32. Overdrafts upto Rs 5000 under PMJDY should be classified under Priority
Others, provided household annual income does not exceed Rs ____ for rural
areas and Rs ______ in non- rural areas.
a) 60000, 120000
b) 100000, 160000
c) 100000, 200000
d) No income criteria
33. Bank loans upto Rs _________to borrowers, other than individual households for
purposes like solar based, bio mass based power generators, wind mills etc.
should be classified under Priority Sector-Renewable Energy.
a) 1 crore
b) 5 crores
c) 15 crores
d) 100 crores
34. Housing loans to individuals at
classified under Priority provided
_______.
a) 15 lacs, 20 lacs
b) 20 lacs, 25 lacs
c) 24 lacs, 30 lacs
d) 28 lacs, 35 lacs
35. Housing loans to individuals at
classified under Priority provided
_______.
a) 15 lacs, 20 lacs
b) 20 lacs, 25 lacs
c) 24 lacs, 30 lacs
d) 28 lacs, 35 lacs
Metro centres upto Rs _______should be

the dwelling unit cost does not exceed Rs
other centres upto Rs _______should be

the dwelling unit cost does not exceed Rs
MSME
To ensure balanced growth of the MSMEs, Govt. of India has enacted the Micro,
Small and Medium Enterprises Development (MSMED) Act, 2006 on 16.06.2006
(notified on 02.10.2006).
With the enactment of MSMED Act 2006, Services sector has become part of Micro,
Small & Medium Enterprises.
The MSMEs engaged in manufacturing or production and providing or rendering of
services are defined as per MSMED Act 2006 for the purpose of bank credit.
Manufacturing Enterprises : engaged in manufacturing or production, processing or
preservation of goods and whose investment in P&M is ( the Original Cost excluding
land and building and other items as specified below) as specified below
1.Micro manufacturing: Investment in P&M does not exceed Rs 25 Lacs
2.Small Manufacturing:Investment in P & M is more than Rs 25 Lacs but does
not exceed Rs 5 Cr
3.Medium Manufacturing:Investment in P & M is more than Rs 5 Cr but does not
exceed Rs 10 Cr.
Service Enterprises :engaged in providing or rendering of service and whose
investment in equipment ( original cost excluding land & building and further ,fitting
and other items not directly related to the service rendered as specified below).This
will include small road & water transport operators ,small business, retail trade,
professional & self employed persons and all other service enterprises.
1.Micro Service: Investment in P&M does not exceed Rs 10 Lacs
2.Small Service:Investment in P & M is more than Rs 10 Lacs but does not
exceed Rs 2 Cr
3.Medium Service:Investment in P & M is more than Rs 2 Cr but does not exceed
Rs 5 Cr.
Items to be included while calculating the original investment in P & M :
Wind mills
The investment in establishing of windmill/s to generate electricity for captive
consumption or partly for captive consumption and remaining power to sell to
Electricity Boards/others are to be included in the investment in P&M for the
purpose of computation of investment limit for classification as Micro, Small and
Medium Enterprises under MSMED Act, 2006.
Wind mill is established solely for the purpose of selling its generated power to
Electricity Boards or others, in a premises, separate to the unit where other
products are also manufactured, the investment in such wind mill shall be
considered as an investment in new enterprises (321/2012)
Items to be excluded while calculating the original investment in P& M:
Equipment such as tools, jigs, dyes, moulds and spare parts
Installation of plant and machinery;
Research and development equipment and pollution control equipment;
Power generation set and extra transformer installed as per the regulations of the
State Electricity Board;
Bank charges and service charges paid to the National Small Industries
Corporation (NSIC) or the State Small Industries Corporation;
Gas producer plant;
Transportation charges (excluding sales-tax or value added tax, excise duty) for
indigenous machinery from the place of their manufacture to the site of the
enterprise;
Charges paid for technical know-how for erection of P&M ;
Such storage tanks which store raw materials and finished products only and are
not linked with the manufacturing process; and
Fire fighting equipment.
While calculating the investment in plant and machinery, the original price thereof,
irrespective of whether the P&M are new or second hand, shall be taken into
account
In the case of imported machinery, the followingshall be included while calculating
the value, namely:
Import duty (excluding miscellaneous expenses such as transportation from the
port to the site of the factory, demurrage paid at the port);
Shipping charges;
Customs clearance charges; and
Sales tax or value added tax
Classification and Targets for Lending To SME Sector ( 235/2015 )

7.5 % of ANBC% target for Micro Enterprises (Include KVIC ), by March 2017. ( 7 %
by March 2016 ) .
Loan to service enterprises will be classified as priority sector, if loan amount is upto
Rs 5 crore per unit for MSE and upto Rs 10 Crore is financed to Medium enterprises
MSME will enjoy priority sector classification upto 3 years after they grow out of
MSME category
All advances granted to units in the Khadi & Village Industries Sector (KVI),
irrespective of their size of operations, location and amount of original investment in
plant and machinery/ equipments will be covered under Priority Sector advances
Time Norms For Disposal of Micro & Small Enterprises Proposals (Cir220/2013,
469/2013)
Loans upto `25,000 within 2 weeks from the date of receipt.

Loans upto `5.00 lakhs within 4 weeks from the date of receipt.
Loans over `5.00 lakhs upto `25 lakhs- Br-30 days, CO-45 days, HO-45 days
Loans above `25lakhs- Br-30 days, CO-45 days, HO- within a maximum period of 8
weeks from the date of receipt.
Provided such applications are complete in all respects. Branches to issue Token of
Service on receipt of application
Time Norms For Disposal of Medium Enterprises Proposals(Cir 220/2013,
469/2013)
Loans upto `25,000 within 2 weeks from the date of receipt.

Loans upto `5.00 lakhs within 4 weeks from the date of receipt.
Loans over `5.00 lakhs upto `25 lakhs- Br-30 days, CO-45 days, HO-45 days
Loans above `25lakhs- Br-30 days, CO-45 days, HO- within a maximum period of 8
weeks from the date of receipt.
Provided such applications are complete in all respects. Branches to issue Token of
Service on receipt of application.
Inwarding of MSME loan applications in the Inward Register in Automated Lending
Processing System (MSME Suvidha Package).
Security Norms(Cir 213/2010)

No collateral security and/or third party guarantee to be taken in respect of loans /
advances to MSME units as under (including KVIC and Government sponsored):
(a) Up to `10 lakhs as per recommendations working group headed by Shri V K
Sharma, ED, RBI);
(b) Up to `25 lakhs in respect of units whose track record and financial position are
good as per Bank records.
(c) Up to `100 lakhs in respect of Micro & Small Enterprises whose borrowal
accounts are covered under CGMSE (d) Presently CGMSE cover is not available
for credit facilities extended to Retail Traders, Educational Institutions, Training
Institutes, Training cum incubator centres and loans/advances granted to Medium
Enterprises, JLG & SHG.
In respect of credit facilities extended to Micro & Small Enterprises (MSEs)
wherever collateral security and / or third party guarantee is not obtained, coverage
offered by Credit Guarantee Trust Fund for Micro & Small Enterprises (CGTMSE)
is to be necessarily taken.
Filing Of Memorandum By SME Units (Cir 275/07, 212/2011,579/2015)
With the introduction of MSMED ACT, Filing of memorandum (Registration) is not
mandatory in the case of Micro and Small units in both Manufacturing / Services
Sector and also for Medium size units in Services sector.
It is only optional or in other words, filing of memorandum is compulsory only for
medium industry in manufacturing sector.
Entrepreneurs Memorandum (EM-I) and EM-II have been replaced by Udyog
aadhhar Memerandum(UAM) for the MSME enterprises registered after
18/09/15.Though it contain Aadhaar in its name, it is not mandatory to obtain
aadhaar.
Delayed Payment To Micro And Small Enterprises
The buyer to make payment on or before the date agreed on between him and the
supplier in writing or, in case of no agreement before the appointed day. The
agreement between seller and buyer shall not exceed more than 45 days.
The buyer fails to make payment of the amount to the supplier, he shall be liable
to pay compound interest with monthly rests to the supplier on the amount from
the appointed day or, on the date agreed on, at three times of the Bank Rate
notified by Reserve Bank.
Rejection Of Credit Proposals
Rejection of MSME proposals is subject to concurrence of the NHA.
MoU for due diligence services of micro, small & medium enterprises
MSE units who approach our Bank for the first time for the credit facility requirement
of above Rs.10 lakhs and upto Rs.100 Lakhs and eligible to be covered under
CGMSE are to be brought under Due Diligence Service
Bank has entered MoU with M/s CARE Ltd , CRISIL Limited, M/S ONICRA Credit
Rating Agency of India Ltd , M/S IRR advisory Services Pvt Ltd , M/S Brickwork
Ratings India Pvt Ltd and M/s SMERA for Due Diligence Services of Micro, Small &
Medium Enterprises.
Due Diligence report broadly covers
a) Ownership pattern and Management Profile of Proprietor/partners/Directors.

b) Organizational structure ,controls and systems
c) Key management personnel
d) Details of properties owned (as confirmed by management)
e) Business profile
f) Demand and supply side analysis
g) Current and past financial performance (analysis of various financial
parameters)
h) Current banking facilities
i) Group companies and Firms
j) Site visit details
k) Third party checks, customers feedback, suppliers feedback, other bankers
feedback
Take Over Norms For SME Advances(Cir 212/2011)

Respective sanctioning authority may permit take over of Borrowal accounts from
other Banks/Financial institutions upto their normal delegated powers in case of Low
Risk & Normal Risk Accounts.
In case of borrowal accounts(non takeover) in other than MSME segment, if the
account is risk rated as Moderate risk in the pre-sanction stage, the sanction can be
accorded by Circle Head.
Sanctioning authority may waive Project Appraisal and Vetting in respect of take
over of term loans, where implementation of project is in terms of the sanction.
Current ratio can be 1. Debt Equity Ratio may go up to 3.
For take over of fund based limits, concession in Rate of Interest by 0.25% over the
applicable rate may be permitted for takeover of borrowal accounts from other banks
/ Financial institutions. Such concession may be accorded by CM/DM and above
authorities.
NOC/Consent letter of the transferor bank/FIs need not be insisted.
Application Forms For Credit Facilities To Micro & Small Enterprises (MSEs) NF
998 (Cir 337/09)- Recommendations of Dr K C Chakrabarthy Committee
SME Cluster Approach: Recommended by Dr A.S.Ganguly Committee. 4-C in
cluster approach- Customer Focus, Cost Control, Cross Sell and Contain Risk.
M/s Canbank Computer Services Ltd has developed a online marketing portal
www.Canbankemart.com for online marketing of products and services of MSME
units. (Cir 648/2014)
Status of Multiple unit under single ownership(Cir 426/2010):System of clubbing of
investments of two or more enterprises under the same ownership for the purpose of
classification of industrial undertakings as Micro and Small Enterprises (formerly
SSI) has been withdrawn by RBI.
Certificate Examination in SME Finance for Bankers: Incentive to staff `5000/- for
passing the exam conducted by IIBF.
MSME Specific Delegation Of Powers:
For Branch-in-charge of specialized SME branches : Sanctioning powers at par

with Large branch delegated power(Rs.75 Lakh)- Also applicable to Overseas/IF/AF
Branch.
Standby credit for SME: 20% of sanctioned limit or delegated powers whichever is
lower. Standby export credit: 10% of sanctioned limit or 10% of delegated powers
which ever is lower.
VSL Granted to MSE customers New Product Code introduced (Cir659/2014)
VSL granted to MSE customers should be opened under product code 767.
Deposit shall be the prime security for the loan.
Since Deposit is taken as the prime security coverage under CGMSE is not
mandatory.
VSL granted to Micro and Small Enterprise sector alone should be opened under
the new code.VSL granted to Medium Enterprises should not be opened under this
code.
To ascertain the MSE status of the non-borrower customers, i.e., those who are not
enjoying any credit limit/s with us, a documentary proof has to be obtained and kept
with the loan papers.Wherever customers are unable to submit documentary proof,
such loans should be granted under Product Code 743 VSL Non-Priority.
Open Cash Credit (Cir 300/2006, 24/2008, 284/2008, 322/2011)

Stock statement: Once in a month for Industries and once in a fortnight for others. If
party submits Audited Balance Sheet, stock statement once in a month. Sanctioning
Authority may stipulate longer periods also. Submission within 7 days.
MSOD cum Stock Statement(NF902) details shall be obtained from Industrial
borrowers enjoying working capital limits of `10 lac and above.(322/2011)
Branches shall obtain the Simplified stock statement (NF 1003) from all borrowers
(industrial and non industrial borrowers) who are enjoying SOCC limits upto ` 5 lacs
and OCC/PC limits upto ` 10 lacs. In NF1003, godown inspection report is
embedded hence separate NF814 is not required.(322/2011)
Tenability: Normally one year. If fixed for longer period, annual review.
Obtention of Search Report (Cir.24/2008):For corporate, yearly.
In respect of Circle / Head office power accounts, the stock statement & NF
814(stock inspection report) should be forwarded for their review.
Treatment of unpaid stock : Normally, drawing limit shall be computed by
deduction entire trade creditors from stock value to determine drawing limit. As a
special case, with the permission of GM(HO) and above authorities trade creditors
may not be deducted from stocks, upto accepted level for arriving drawing power.
In case of SME working capital limits upto `2 crores for LR1, LR2 parties obtention of
detailed stock statements and godown inspection may be prescribed at quarterly
intervals.
Godown inspection by officer/manager, on rotation basis. Same person may
godown inspection continuously for 3 times.
Once in a year, the godown should be inspected by the Manager/ Senior Manager
in-charge of the branch.
In the case of accounts classified under Special Watch category/ NPA accounts
(non-LPD accounts), the Manager / Senior Manager in-charge of the branch or
Credit Manger in CSB/ELB/VLB should conduct the godown inspection at least once
in 6 months.
Stock Inspection by CM / AGM heading the branches (Cir: 300/2006): At least
once in a year in respect of following accounts. (a) High Risk accounts (wherever the
accounts are subjected to Credit Risk Rating). (b) ASCC S3, S4 and non LPD NPA
accounts (c) Accounts which are appearing in the Special watch category
persistently.
Stock Inspection(Cir. 284/2008):In case of PCBs, the DGM, heading the branch
shall continue to conduct the stock inspection once in a year in respect of the
borrowal accounts classified HR, S3, S4, Special Watch & Non LPD NPA.
In branches other than those designated as Prime Corporate Branches (PCBs) but
headed by DGM, in respect of borrowal accounts classified as HR, S3,S4, Special
Watch & Non LPD, with aggregate exposure of `10 crore and above, Head of the
branch i.e. DGM shall conduct stock inspection. (Cir. 284/2008)
In case of all other borrowal accounts [classified as HR, S3,S4,Special Watch &
Non LPD], the stock inspection shall be carried out either by the Head of the branch
or any other Executive in Scale-IV or V at the above branches. (Cir. 284/2008)
Audited Balance Sheet: For corporate: irrespective of amount. For others: Limit
above `20 lacs or Turnover of `100 lacs and above per annum, where total receipts
exceeds `25 lacs and also where audit of balance sheet is mandatory by statute.
Penal interest of 2 % on the outstanding liability (fund based) shall be collected if
the audited financial statements are not submitted before 31st October every year or
within a fortnight of adoption of accounts of the borrower whichever is earlier
unless waived by authorities not below GM-CO-CAC/GM/CGM-HO-CAS.
QOS / HOS Operational Guidelines : Applicability: Parties enjoying Fund & NonFund based working capital limits of `5 crore and above. penal interest of 1% for
delayed/non-submission of QOS/ HOS from borrowers, to be collected for the entire
quarter. Penal interest of 0.25% on NFB liability subject to a cap of `1 Lakh per
month for Parties who enjoy exclusive NFB. Where Party is enjoying and NFB limit,
penalty shall be 1% on FB liability and 0.25% on NFB as above shall be charged.
Periodicity of submission: QOS within 6 weeks from the closure of the relevant
quarter (14th May / August / November / February) and HOS within 8 weeks from
the closure of the half year (31st May and 30th November)
OD-SME Scheme(Cir 215/2012)
Covers MSME manufacturing activity.

Entrepreneurs engaged in industrial activity and falling within the meaning of Micro,
Small & Medium Enterprises, Existing parties with 2 years satisfactory
dealings.(ASCC S1/S2 OR LR/NR/MR). New Client/Units whose market report &
prospects are satisfactory subject to their dealings confined to our bank.
Maximum of `3 Crores. Sub limit for ILC and BG may be fixed within overall limit
.Assessment of limit as per turnover method or MPBF system.
Stock inspection- Upto 10 lakh- Half Yearly, Beyond 10 lakh-quarterly
Tenability: Upto Rs.2 lakh- 2 years, Beyond Rs.2 lakh dependent on risk ratingLR-18 month, NR- 15 month, MR- 12 month(subject to annual review)
Security: Primary: 100% stocks and book debts. Collateral: Mortgage of land and
building with value not less than 125% of the limit sanctioned.
Vacant sites with no superstructure thereupon may also be taken as security for the
above purpose provided they are allotted by Govt. approved local bodies/ competent
authority and converted for non agricultural purpose by the competent authority.
However, the valuation of the same to be in relation to Guideline Value as advised
by the competent authority in respective States from time to time.
All other guidelines similar to Canara Trade.
Doctors Choice (Cir 170/03, 281/03, 170/04,377/2013)
All qualilfied registered practitioners.

Loans under the scheme shall also be available for meeting business trip expenses,
setting up of In-house medical store managed by a qualified pharmacist and
construction of quarters for resident doctor.
Maximum loan quantum increased to `5 crores (Sub ceiling for working capital
increased to `50 lakhs-20% of Maximum Limit)).
Margin: Above `25,000/-:20%/ 25% (TL for construction purpose)
Security: Upto `10 lakhs Nil Collateral but CGMSE coverage above 10 lacs to 100
lacs Collateral security of value 50% or CGMSE coverage. Above 100 lakh
mortgage of immovable property and/or approved security valuing at least 50% of
limit.
Repayment: TL 5 to 7 years W/C 2-3 yrs.
Interest Concession- 0.50% for women entrepreneur & 0.25% for CGMSE covered
account. Min interest Base Rate.
Working capital 25% of previous years turnover or 25 % of the expected turnover
or 2 times the actual net income or the ceiling amount of `50 lacs whichever is less.
Simplified Open Cash Credit (SOCC)(Cir 110/2000)
Maximum Limit: `5 lakhs only (Cir.110/2000)

Facility is permitted as a Running Limit subject to review /renewal every year.
Simplified stock statement Once in a month.
Details of book debts to be submitted once in 6 months.
Detailed stock statement Once in 6 months for industries & Once in a year for
retail traders.
Inspection : Monthly. (110/2000)
Laghu Udhyami Credit Card (LUCC) (Cir 46/2002, 144/2004, 104/2006, 213/2010)
To provide hassle free Working Capital to Artisans, Retail traders, P&SE & SMEs.
Eligibility: Existing parties enjoying aggregate loan and / or operative limits of `2
lacs and having satisfactory dealings for 3 years.
Parties with continuous satisfactory dealings for a minimum of 3 years but not
having any liability are also eligible
Maximum quantum : `10 lacs per borrower (aggregate)
Card validity: 3 years with annual review.
Margin: NIL upto `25000/= ; Above `25000/= 25% (SME Handbook)
Insurance up to `50000 waived.
Cheque book marked LUCC.
Laminated LUCC cards will be issued
No need to submit monthly stock statements upto `2 lakhs. Above `2 lakhs,
simplified monthly stock statements and detailed stock statements annually.
Stock inspection Quarterly.
Processing Charges: Nil upto `5 lakh.
No collateral security upto `10 lacs for SME loans as per Cir213/2010.
Artisan Credit Card Scheme: (ACC)(Cir NO.132/2003, 223/2006, 274/2009)
Existing artisans in rural and urban areas enjoying credit facilities and having
satisfactory dealings
Type of facility: Either as W/C or as T/L.
Quantum of Loan: Upto `2.00 lakhs (aggregate amount)
Assessment as per turnover method.
Margin: For limits upto `25,000 : NIL // For limits above `25,000 : 15 to 25%
Tenability / Validity of ACC - W/C -- Valid for 3 yrs; T/L -- 3 to 5 yrs.
Security: Assets created out of finance; no collateral security.
Card free of cost with photograph.
Insurance upto `50000 waived.
Monthly stock statement Waived.
Quarterly Inspection.
Cir. 274/2009 :Reimbursement of Guarantee Fee (GF) / Annual Service Fee (ASF)
by Office of DC (Handicrafts): All Guarantee Fee(1% of limit)/Annual Service
Fee(0.5% of limit per annum) will be reimbursed by DC (Handicrafts),Ministry of
Textiles, from April 01, 2009, for which they already deposited amount for 4 years
with CGMSE. CGTMSE has informed that the commitment by the Office of the DC
(Handicraft) for providing corpus fund to the Trust for four years since FY 2009 had
ended by FY 2013 . So branch have to remit the premium by debiting the account
well in advance.(Cir 213/2013)
COIR UDYAMI YOJANA ( CUY) (cir 158/2009, 179/2013, 300/2013, 405/2013,

426/2013, 662/2013 ,522/2014, 356/2015)
Central Sector Scheme Of Ministry Of MSME, Government Of India For

Rejuvenation, Modernization And Technology Upgradation Of The Coir Industry is
renamed from REMOT to Coir Udyami Yojana
Coir Board, Kochi is the Nodal agency for implementation
Scheme continued for 12th five year Plan
Projects for production of coir fiber /yarn/products etc coming under Coir Sector shall
be covered under this scheme .
Maximum admissible cost of project is `10 lakhs plus working capital ,which shall not
exceed 25 % of Project Cost .WC not considered for subsidy .
Level of Funding :Befeficiary contribution- 5 % of project cost . Bank Credit -55 %
.Rate of subsidy 40 % . The Bank shall sanction 95 % of project cost after
adjusting 5 % beneficiary contribution deposited and disburse full amount of project
cost .
Rate of Interest shall be at par with Base rate .Repayment period may not exceed 7
year after an initial moratorium .
The loan must be covered under CGTMSE .
On receipt of application , Bank shall intimate the sanction or other wise to the
beneficiary and coir board field officer within 60 calender days .
Beneficiary must deposit his share to Bank within 30 days from date of receipt of
letter from Bank confirming sanction
Entire Term Loan amount ( inclusive of grant portion included in the loan
component) shall be released to the beneficiary within 10 calender days on receipt
of pro-rata grant from Coir Board.
In case of non release of Term Loan to the beneficiary within 10 calender days
,Bank shall pay interest on the pre rata grant ,at running rate of interest on deposit.
Project shall be completed within 6 months from date of release of Term Loan.
Margin Money (Subsidy) received should be kept in Term Deposit for two years .No
interest is to be paid on TD and no interest should be charged on subsidy amount.
100 % physical verification of actual establishment and working status by Coir Board
In unit goes out of production within 5 years from date of commencement of
production , grant would be recovered .
Only one person from one family is eligible for obtaining financial assistance for
setting up project under REMOT scheme.
Integrated Development of Leather Sector (IDLS) scheme, a sub-scheme of Indian
Leather Development Programme(ILDP) Developed by GOI (Cir 485/2014,
162/2015)
The present sub-scheme is aimed at enabling tanneries, footwear,footwear

components, leather goods and accessories, leather garments,harness & saddlery
manufacturing units to upgrade themselves leading to productive gains, right-sizing
of capacity, cost cutting, design and development including simultaneously
encouraging entrepreneurs to diversify and set up new units in the areas as
specified
Government of India, Ministry of Commerce and Industry, Department of Industrial
Policy and Promotion (DIPP) (Leather Section) has approved the Integrated
Development of Leather Sector (IDLS) scheme a sub-scheme of Indian Leather
Development Programme (ILDP) to be implemented during the 12th plan period.
Out of six sub-schemes of ILDP, for the sub-Scheme IDLS, Canara Bank is the
nodal Bank for releasing subsidy to the units. Our Noida Main branch (DP-1177)
has been designated as disbursement agency for release of grant under the
scheme.
Pre disbursal Bank Inspection Report format is introduced vide Cir 162/2015.
The Units eligible for coverage under the sub-scheme are Modernization of
Tanneries, Modernization of footwear & footwear components units, Modernization
of leather product units and Modernization of harness & saddler units.
The financial assistance under the scheme will be 30% of the cost of P & M for
Micro and Small Enterprises and 20% of the cost of P & M for other units subject to
a ceiling of Rs.2 Crores for each product line. The cost of upgradation/setting up
new units under the scheme will include:Bill value of machinery Sales and excise
tax,Transportation and transit insurance cost,Import related duty.
Availing Bank Finance is not mandatory to avail the benefit of grant. Units upgraded
as per the specifications of the scheme guidelines out of their own funds are also
eligible to get grant from Government of India.
Availing finance is not mandatory to get the grant.
Concerned banks would be paid fees for their services as disbursement agency
maximum of @ 0.50 % of the total Government assistance released by them to the
approved units.
Weaver Credit Card(WCC) Cir 175/2012, 286/2014, 646/2014)

Loan scheme for Handloom Weavers for working capital and term loan
requirements.
Eligible weavers to be issued with Weavers Credit Card valid for 3 years.
Maximum permissible limit per borrower is Rs.2 Lakhs.
Term Loan Repayment is restricted to 36 Months.
Simplified Open Cash Credit (SOCC) limit to be sanctioned for a validity period of 3
years subject to annual review.
Submission of Stock Statement has been waived however unit inspection has to be
made on half yearly basis.
Individual weaver beneficiary is eligible for:
Margin Money Assistance is enhanced to Rs 10,000/- per weaver to Individual
weavers, their Self Help Groups and Joint Liability Groups.
To provide subsidised Term Loans and Working Capital loan to Handloom Sector at
the Interest rate of 6% for a period of THREE YEARS, the quantum of interest
subsidy to be borne by the Government of India will be for three years and limited to
the difference between the actual rate of interest as applicable and charged by the
Banks and 6% to be borne by the borrower.
Interest subvention from government will not be available from the date of loan
account becoming NPA.
Existing liabilities of the applicant to be cleared in full, before availing the limit under
this scheme.
The loans shall be opened under Product Codes 275 (Working Capital) and 769
(Term Loans) only.
Maximum Interest subvention would be capped at 7%
Food & Agro Processing Units ( 601/15):
Loans to food and agro-based processing units with investments in plant and
machinery up to ` 5 Crores, to be classified as MSE.
Parameters: DE Ratio: 3:1 to 5.66:1 (5.66 is for units upto `10 lakhs) Promoters
contribution: 15%, FACR: Not less than 1.2, DSCR : Not less than 1.5
Loans for Food and Agro Processing units upto an aggregate sanctioned limit of Rs
100 Cr is eligible to be classified under Agriculture- Ancillary activities ( 64800Sector Code)
ROI, scoring norms, risk rating modules and other policy matters ( service charges,
security norms, appraisal of proposals) as applicable to MSE advances to Food and
Agro Processing Industries ,will be continued ,even after reclassification to
agriculture
Project appraisal will be carried out by PAG of CO/HO even after reclassification
from MSME to Agriculture.Loans to Food & Agro Processing Units ( upto Rs 100 Cr)
,now coming under agriculture & dealt at CO/ Branches ,the delegation of power as
applicable for Loans other than Agriculture are to be followed
Food & Agro Processing units are eligible to be covered under CGMSE even after
reclassification.
ROI concession is available for various specific activities/area specific schemes
classified under agriculture & MSME ,and the same will be continued irrespective of
reclassification.
Short Term Corporate Loan Scheme (STCL)(cir 203/2009, 208/2011, 212/2011,
331/2012,)
Existing schemes viz., Corporate Loan Scheme, Line of Credit and Short Term
Lending Rate (STLR) are amalgamated into one and the new scheme viz., "Short
Term Corporate Loan" scheme is introduced.
For meeting WC requirement where full tie-up of WC is pending and increased
operations are envisaged
For meeting project expansion / project related expenses pending full tie-up of Term
loan / Creation of security / disbursement etc.
Short term cash flow mismatches.
Only fully secured loans shall be granted under STCL
Existing customers of the Bank having fund based credit exposure of not less than
`40 crores.
New customers with fund based credit exposure by other banks/FIs of not less than
`50 crores.
PSUs, other Govt. organizations, listed companies, other corporate, having
Satisfactory track record, classified as Standard Asset with all the banks,
Debt programme is rated as AAA / AA/ A or equivalent by External Credit Rating
Agencies as per Basel II norms and/or rated Low Risk / Normal Risk by the Bank.
Promoter companies rated A or equivalent by External Credit Rating Agencies as
per Basel-II norms can also be considered, subject to satisfying stipulated financial
criteria.
The loan will be in the form of Short Term Loan
CAC of the Board and above committee shall be delegated to sanction STCLs.
Minimum amount of loan shall be `5.00 crores
On single transaction basis
The loan will normally be repayable within a period of 12 months. Permit rollover
only once for a maximum period of 06 months during the tenure of the said STCL.
The total period including rollover shall not exceed the maximum tenor of 12
months. The rollover shall be permitted only after the repayment of the earlier
STCL.
Only fully secured loan shall be granted under STCL
All such exposures with a contractual maturity of one year or less, ECAI rating for
short term exposures (P 1 +, P 1 , P 2 or equivalent) shall be taken into account, if
available in place of any long term rating. However, if repeated renewals are sought
which takes the contracted period in aggregate beyond 1 year, the above
modification shall not apply.
STCL Scheme Modification(331/2012): STCL can be availed within a maximum
period of 3 months from the date of sanction and in not more than 3 trenches.
DSCR is not applicable for STCLs.
Corporate Loan Scheme (Cir 445/2013)

Loans can be considered for any genuine funding purpose in line with the business
activity of a customer
Existing customers of the Bank having credit exposure (FB) of not less than 40.00
crores.
New customers with fund based credit exposure by other banks/FIs of not less than
50.00 crores and are classified as Standard Assets with existing bankers.
The loan will be in the form of Secured Medium Term Loan.
Need based finance based on the cash flow on single transaction basis and
minimum amount of loan shall be 10.00 crores.
The maximum tenor of the loan granted under the scheme shall be 60 months. The
loan shall be permitted to only the borrowers having good repayment track history
and there shall not be any overdue.
The loans can be availed within a maximum period of 3 months from the date of
sanction and in not more than 3 tranches.
CAC of the Board and above committee shall be delegated to sanction these loans.
Loan scheme for financing road transport operators under tie up arrangement
with M/S Ashok leyland ltd (Cir 8/2012, 519/2013, 19/2015, 85/2015)
Individuals, association of individuals, schools, trusts, societies, firms, limited

companies registered as public carriers of transport operators
Finance for purchase of luxury buses shall be provided only to transport operators
holding route permit and should be in the line of business for a min. period of 2 years
Proposal for purchase of second hand vehicle not eligible.
Restricted to 2 vehicle per borrower & 85 % on road cost of vehicle
Collateral- No collateral /III party Guarantee to be insisted for loan upto Rs 10.00 lac
& to be covered under CGTMSE
Collateral security by way of mortgage of immovable property, to the extent of 50 %
of the loan amount may be insisted for loan above Rs 10.00 lacs
If no collateral is available the same has to be covered under CGTMSE
Concessional ROI for Low Risk at Base Rate + 1.75%
Concessional ROI for Normal & Moderate Risk at Base Rate + 2.00%
50% Concession in CGTMSE guarantee fee and annual service fee for the first
year only as one time measure.
Facility is restricted to clients falling under Low, Normal & Moderate Risk and without
linking to Scoring Norm.
Product Code in CBS 768 MSME -Services
Bank has also entered in MOU with Mahindra Truck & Buses, Volvo Eicher
Commercial Vehicle, Tata Motor & Bajaj Auto limited for vehicle financing at our
existing term & conditions. MOU is valid upto 30.10.2016(Cir 528 to 531/2013,
85/2015)
Memorandum of Understanding (MoU) between Canara Bank and Piaggio Vehicles
Private Limited to finance the customers for purchase of Companys Commercial
Vehicles. The MoU is valid upto 11.02.2016. (Cir 95/2014)
Bank has entered into Memorandum of Understanding with M/S Ashok Leyland John
Deere Construction Equipment Private Limited(ALJD) (valid for 1 year upto
27.02.2015) for providing finance to the customers for purchasing Backhoe Loader
435 of ALJD Make.(Cir 149/2014)
SUPPLY CHAIN FINANCE MANAGEMENT (SCFM) (369/2012, 249/2013, 453/2013)
Supply Chain Finance Management is an innovative lending option to extend working
capital finance to suppliers (pre-sale stage) and dealers (post-sales stage) of corporate
clients ensuring business continuity seamlessly by avoiding bottleneck in working
capital needs at both ends as also the corporate. It can otherwise also be called
creditors management (suppliers) and debtors management (dealers) for the corporates
and ensures uninterrupted purchases (of raw materials and other supplies) and sales
(of finished goods through dealers) on credit.
Supply chain Management flows are divided mainly into three:
a) The product flow
b) The information flow
c) The finances flow
Objectives
To provide integrated financial technology based solution to the corporates
(a) for providing finance to suppliers against acknowledgement of invoice receipt on
supplies made to corporate.
(b) for providing finance to the dealer towards payment for supplies made by the
corporate.
Types of products
Vendor Financing
Dealer Financing
Electronic Invoice presentment and payment (EIPP)
Security
Prime Electronically accepted invoices
Tripartite Agreement
Collateral explorable obtention of tangible collateral security
Tenor
Not to exceed 90 days including grace period generally .SA may consider upto 180
days
This type of finance products will be useful in case of supplies/ sales on usance
basis. Existing bills financing products of our Bank like SDB, BE, Supply Bills etc.,
can be used when manual invoices/Hundis are raised and accepted and the
exposure is taken on the corporate on account of their post-sale requirement.
Penal Interest 2% in case of delayed settlement by corporate.
The respective sanctioning authority may, on a case to case basis, waive obtention
of tripartite agreement from the corporates where the corporate is not willing to
execute the same. This is, however, subject to obtention of referral letter from the
corporate, stating the satisfactory track records of the dealer if the dealer is not the
customer of the Bank.
In case the dealer is customer of the Bank, the same need not be insisted but proper
due diligence to be carried out for inventory funding.
Introduction Of Dealer By The Corporate Not Required, If The Corporate Is Already
A Customer Of Our Bank And Proper KYC Is In Place.
Margin- 10%
These products are technology based solutions and user guidelines/compendium on
Supply Chain Finance Management (SCFM) issued by DIT Wing.
Term Loan Scheme for Extending Quasi Equity ( Risk Capital) Assistance to
MSME(Cir 182/2013)
Purpose:Term Loan to bridge the gap in the means of finance in the

implementation of MSME projects and to meet any other bonafide expenditure
required for the growth of the business
Eligibility:MSME who are enjoying credit facilities with us-3 years profitable track
record with 2 preceeding years satisfactory banking credit records. LR/NR for
Internal Risk Rating or AAA/AA/A/BBB or their equivalents for ECAI rating.
MSME who are NOT enjoying credit facilities with us- 3 years profit track records of
promoters or their concerns in same line of activity. Satisfactory market report and
OPL from existing banker.
Security
Hypothecation of movable asset, mortgage of immovable asset and collateral
securities / CGMSE in case of sole banking.
Creation of II charge on current and fixed asset and collateral securities in case of
consortium /MBA assistance
Quantum of loan: Min. Rs 25.00 lacs max. Rs 10.00 Cr subject to Sub- debt
assistance not exceeding 1/3rd of the Post-project TNW
Repayment: 7 years including moratorium. Moratoium of principal Max 3 Years
CANARA MSE PRAGATI (Cir 380/2013, 539/2013, 636/2013, 239/2014 )
Target Group- MSE except traders, educational institutions, Self Help Groups &
JLGs.
Working capital (Overdraft/Open Cash Credit), short term loans and/or term loans
may be granted under the scheme depending on the need, with NIL margin upto
Rs.25000/- and 15% margin for loans above Rs.25000/-.
Quantun- Upto Rs.10 Lakh.
Rate of interest on term loans and working capital limits shall be Base Rate+0.55%,
presently, 10.75% p.a. (floating) and subject to changes from time to time. 0.25%
interest concession for CGMSE covered account, not available.
Processing charges/upfront fee shall be 50% of the normal charges. Upto Rs.5
Lakhs Nil.
Entire Annual guarantee fee (AGF) payable to Credit Guarantee Fund Trust for
Micro and Small Enterprises (CGTMSE) shall be absorbed by the Bank.
Debit applicable CGTMSE Annual Guarantee fee (AGF) to GL Code 420085505.
Debit Applicable Service Tax (at present - 14.00%) to GL Code 420085475.
Tenability of working capital (Overdraft/Open Cash Credit) shall be 3 years subject
to Annual Review.(Format As per Cir 539/2013)
Stock Statement- Upto Rs.2 lakh- Nil. Other Cases Quarterly simplified in NF585,
detailed stock statement, annually in March very year.
To stipulate margin for the loans granted for purchase of commercial vehicles , the
vehicle cost shall be on road cost.
Repayment period maximum of 7 years inclusive of holiday period
Non fund based limits can also be considered for units whose risk rating is upto
Moderate risk are eligible
Scoring norms is not the deciding factor for eligibility criteria.
The scheme is extended upto 31.03.2016.
New campaign Mission 60' launched to increase lending to Micro Enterprises.
Every Friday to be observed as MSE Pragati Day.
CANARA MSE UNNATI(Cir 381/2013, 636/2013,240/2014)
Target Group- MSE except traders, educational institutions, Self Help Groups &
JLGs.
Under the scheme, working capital (OD/OCC), short term loans and/or term loans of
above Rs.10 lakhs to Rs.100 lakhs may be granted depending on the need and at
20% margin on stocks/book debts/fixed assets.
Rate of interest on term loans and working capital limits shall be Base Rate+1.25%
(presently, 11.45% p.a.) and subject to changes from time to time. Interest
concession of 0.50%(WE)/0.25%(CGMSE) can be extended subject to ultimate rate
not falling below prevailing Base Rate.
25% concession in processing charges and upfront fee is available.
Stock Statement- Quarterly simplified in NF585, detailed stock statement, annually
in March very year.
Tenability of working capital limits shall be 24 months subject to Annual Review.
(Format As per Cir 539/2013)
To stipulate margin for the loans granted for purchase of commercial vehicles , the
vehicle cost shall be on road cost.
Repayment period maximum of 7 years inclusive of holiday period
Non fund based limits can also be considered
Units whose risk rating is upto Moderate risk are eligible

Scoring norms is not the deciding factor for eligibility criteria.
Scheme is valid till 31.03.2016 (Cir 132/2015).
Internal Guidelines issued for CGTMSE Guarantee Coverage for credit facilities
above Rs.50 lakhs advised vide Ho Circular 514/2013 are not applicable to the loans
sanctioned under this scheme (132/2015).
CANARA MSE SATKAR(Cir 604/2013, 637/2013)
Purpose: To meet working capital needs and term loan requirements for purchase
of equipments required for setting up Restaurants/Dhabas/Eateries/Mobile
canteen/Fast Food Centres.
SHG & JLG are not eligible.
Quantum: Term Loan-85% of Project Cost, STL- Stock holding required for
maximum 7 days. Rural/Village- Max-Rs.2 lakh, Semi Urban/Taluk HQ- Rs.5 lakh,
Urban/Metro Centre- Rs.10 lakh. Loan beyond Rs.10 lakh to be considered under
normal MSME scheme.
Processing/ Upfront Fee- 50% of applicable charges.
ROI: Base Rate+0.55
CGMSE: AGF Debited to the loan account shall be reimbursed by debit to General
Charges.
Repayment: TL- In 5 year by monthly instalments. STL- In 1 year by monthly
instalments.
Godown Inspection: Half Yearly.
Regulatory guidelines of Local authorities in respect of Food Act if any, shall be
necessarily followed. And/Or
An undertaking shall be obtained from the beneficiaries under the subject scheme
for compliance of FOOD SAFETY NORMS
FLAVOUR(Cir 130/2014, 37/2015)
Scheme for granting loans upto Rs.100 lakhs to Micro & Small Enterprises (MSE) to
establish Roasting, Grinding and Packaging Industry of Coffee.
Quantum of Finance Model-1 85% of the project cost with a max of Rs.10.00
lakhs. Model-2 80% of the project cost from 10.00 lakhs to 100.00 lakhs.
Repayment Max.7 years inclusive of repayment holiday of 2-3 months wherever
necessary.
Scale of Subsidy - Large roasting units with a capacity of above 25kg I batch are
eligible for subsidy support of 25 % of the machinery cost with a ceiling of Rs.50
lakhs.
The small roasting units with a capacity of less than 25 kg capacity are eligible for
subsidy support of 35% of the machinery cost with a ceiling of Rs.50 lakhs.
For women entrepreneurs and SC/ ST beneficiaries, subsidy support is @ 40 % of

the machinery cost with a ceiling of Rs.50 lakhs.
Small commercial gourmet roasting units with less than 10 kg capacity are eligible
for subsidy support of 35% of the cost of the machinery with a maximum ceiling of
Rs.10 lakhs per unit.
Rate of interest on term loan Model I(Rs.10 lakh) shall be Base Rate+0.55% and
Term Loan Model II(Rs.10-100 lakh) shall be Base Rate+ 1.25% subject to changes
from time to time.
Upfront fee (Model I) Upto 5 lakhs Nil, >5 lakhs to 10 lakhs 50 % concession,
Model II- 25 % concession for Term Loan in upfront fee.
All accounts are to be mandatorily covered under CGMSE.In MODEL I CGMSE
premium will be borne by bank.
Subsidy is available from Ministry of Commerce and Industry, Government of India,
through Coffee Board, Bangalore, the Nodal Agency.
Applications are sponsored by Coffee Board, Bangalore .
Scheme is valid during XII Plan Period (2013-2017).
CANARA MSE SARAL (Cir 250/2014 , 259/2014)
General Credit Card scheme revised and named as MSE Saral .Under the
scheme loan Granted to non farm entrepreneurial activities undertaken by MSE .
Existing GCC can be continued till their closure and can be renewed under Revised
GCC Scheme (MSE Saral), if granted for non farm sector entrepreneurial activity or
alternatively reported under OD Financial Inclusion Plan , if granted for
consumption purpose .
Only individuals are eligible for finance under the scheme .Small value loan under
the scheme can be granted to SHGs /JLGs.
Maximum `5 lakhs can be granted under the scheme. WC tenability -3 years
subject to annual review .Review format of MSE Pragati scheme is to be used .
Term Loan for maximum 5 year can be granted .
ROI shall be as applicable for loans to Micro and Small Entreprises linked to Base
Rate .Interest concessions to be extended to CGTMSE covered and woman
entrepreneurs accounts.
If Book debts upto age of 90 days permitted with 30% margin. Quaterly basis
Simplified stock statement and yearly basis detailed stock statement to be
submitted. Inspection of stock on quarterly basis and Inspection of fixed asset
created out of bank loan is on half yearly basis.
The borrowers availing loans under the scheme shall be provided with smart cards
with RUPAY emblem linked to their operative SB/OD limits or GCCS Loan
passbook for term loans
CANARA MSE SMART (Cir 295/2014)
To provide credit to MSE professionals like CA ,CS,Civil Engineers, Cost

Accountants and Architectss etc for purchase/construction of office premises
/acquisition of machineries /equipments/furniture/ fixtures, including expansion and
modernization of the existing unit, and need based WC limits (secured OD).
Eligibility : 18-60 years individuals /proporietorship /partnership concerns /Private

limited company /HUF having 2 years experience. Applicable for accounts rated
upto Moderate Risk only.
Quantum : Urban & Metro Rs 200 lacs (Max). Other centers Rs 50 Lacs(Max).
furnishing of office premises / Equipment purchase 20 % of eligible quantum (Max
20 Lacs). Construction activity Max 80 % of eligible quantum. WCMax 5 Lacs.
Furnishing leased premise is not permitted.
Assessment :75 % of total project cost or 5/10 times of net annual income for loans
below / above Rs 10 lacs respectively ( whichever is less ) Working capital -10 % of
previous year receipt .
Margin : 10% . Working Capital Nil
ROI : 0.50% concession to women beneficiaries and 0.25% concession to CGMSE
covered accounts.
Upto Rs 50 Lacs LR/NR: BR+1.25%, MR- BR+1.50%
Above Rs 50 Lacs LR/NR: BR+1.50 % , MR- BR+1.75 %
Repayment : WC 3 years , TL : 5-10 Years
Collateral Security : Upto `100 lacs ,loan mandatorily covered under CGTMSE .For
loan above Rs 100 Lacs ,min 25 % of loan amount collateral by way of land and
building .
Submission of stock statement and inspection on quarterly basis
MSME VAHAN (Cir 296 /2014)

To purchase of brand new two wheelers and passenger cars , vans ,jeeps as
business assets / business purpose .Goods carriers are not eligible .
Eligibility : MSME customers including retail traders( upto moderate risk accounts )
Quantum :90% on road cost or 3 years average net profit whichever is lower
subject to maximum Rs 25 lacs. Circle Head can permit above Rs 25 Lacs .
ROI : BR +0.50 % .
0.50 % concession to women beneficiaries and 0.25 % concession to CGMSE
covered accounts .
Repayment : Two Wheelers -60 EMIs . Four Wheelers -84 EMIs
Processing Charges : 0.25 % . Two Wheelers: Rs 250-Rs 1000 . FourWheelers:
Rs 1000-Rs 5000
Security : Loans upto Rs 10 lacs ,AGF for CGTMSE cover to born by Bank . Loans
above Rs 10 lcas ,if not covered under CGTMSE 100 % collateral security to be
obtained
Disbursement : No DD issued . Disbursement directly to vendor by NEFT /RTGS .
MSME VIJETA (Cir 298/2014)
Purpose :To meet business related needs for purchase / construction of business
premises , machinery ,equipments ,vehicles and WC requirements of woman under
MSE including Retail traders .
Eligibility : Individuals ,proprietorship ,partnership firm LLP corporate bodies upto
moderate risk rated only
Nature of credit facility : Term Loan for max 84 months and/ or WC for 2 years
vailidity by overdraft facility .Simplified stock /BD statement once in 6 months
.Detailed once in a year .Inspection half yearly and no inspection charges .
Model I : Upto Rs 10 Lacs .
Margin Upto Rs 25000:NIL .Above Rs 25000 :15 % .
ROI : BR+ 0.50% and no further concession .
Processing Charges:Upto Rs 5 lakh: Nil .Above Rs 5 lacs- upto Rs 10 Lacs -50
% of applicable Charges
Security : CGTMSE AGF to be born by Bank .For Traders collateral to the
extent of 60 % of loan amount .
Model II : Above Rs 10 Lacs and upto Rs 2.00 Crores
Margin-20 %
ROI :LR and NR account BR+1 %. MR account BR+1.25 % .0.25 %
concessions to CGMSE covered accounts
Processing Charges : 75 % of applicable Charges
Security :Upto 1.00 Crore CGTMSE coverage at the option of borrower else
EMT of property to the extent of 60 % of loan amount . For traders suitable
collateral to the extent of 60 % loan amount .
CANARA MSME CAP ( Credit Against Property ) (Cir 301/2014 , 551/2015)
Purpose : To meet WC /TL requirement of MSME borrowers against
unencumbered land and building to the unit or promoters of unit or close relative of
promoters.
Eligibility :Loan against mortgage of land and building ( land alone not permitted )
located in Metro ,Urban and Semi Urban areas .For MR rated accounts only
Nature of facility : WC ( SOD ) and Term Loan ( TL alone not permitted )
Quantum : Manufacturing unit- `500 Lacs .Service Unit- Rs 200 Lacs . Minimum,
loan amount shall be Rs 10 Lacs . Maximum Term Loan shall be Rs 200 Lacs .
Assessment : Term Loan- 90 % of project cost. WC Turn over or MPBF method
whichever is beneficial
ROI : No concession to women entrepreneurs
Working Capital LR/NR : BR+1.25 %, MR: BR+2.00 %
Term Loan LR/NR: BR+1.50 %, MR: BR+2.00 %
Reapyment :WC- tenable for one year . Term Loan- 5-10 Years
Upfront Fee / processing Charges : 50 % of normal charges
Security : Value of mortgage property in Urban & Metro Properties should be 100
% of loan amount for manufacturing unit and 125 % of loan amount for service
sector unit. Value of mortgage property in Semi Urban Centre should be 125 % for
manufacturing and 150 % for service units. If property is less than one year old, sale
deed value or guidelines value, whichever is less may be taken . Property must be
in the name and possession of of the unit or promoters of the unit either self
occupied or vacant or partially tenanted . If property is in the name of close relative ,
they should stand as guarantors .
Fresh valuation shall be obtained once in three years
Valuation from two independent valuers and least should be considered
Avoid tenanted property. Agricultural property and vacant land not permitted
Submission of Stock statement and stock and security inspection is half yearly
basis
For LR and NR stock audit is waived . For MR rated account stock audit
conducted every year
Residual Value of property may be accepted.
CANARA CONTRACTOR SCHEME (Cir 372/2014)
Purpose :Fund Based and Non fund based Working capital assistance ( SOD ) and
Term Loan for purchase of brand new equipment /office premises to MSME service
units engaged in contractors /sub contractors activity .
Eligibility : Civil ,mining and construction contractors / sub contractors . ASCC S1/
S2 for advances upto Rs 2 lacs . For advances above Rs 2 lacs LR/NR/MR
Quantum : Above Rs 10 lakhs upto Rs 10 crore .Maximum 9 times of TNW or need
based finance permitted. Maximum Term Loan Rs 5 crore . For Loans above Rs 2
Crore ,valuation by two independent valuers to be taken .
Margin : TL and NFB 10 % . No stock statement submission and computation of
DP . Backed by mortgage of property situated in Semi Urban / Urban / Metro
collateral value of Rs 125 % .
Repayment : WC- 12 months tenability .Construction purpose TL 5 years . Other
than construction purpose TL -7 years.
Processing Charges : 25 % concession
ROI : Scoring matrix are devised for interest concession for this scheme . Above 75
% marks -0.75 % concession in ROI. 60 %-75 % Marks -0.50 % concession in ROI .
CANARA MSME EXPO (Cir 418/2014)
Purpose : Term loan scheme for MSME exporters,travelling abroad for business
purpose , participation in trade fairs ,exhibition abroad or international Trade fairing
India or any other sale promotion activities
Eligibility : Satisfactory track record for past three years , upto moderate risk rated
and minimum export turnover Rs 100 Lacs during immediate preceding year .
Loan Amount : Linked to export turnover .Maximum Rs 25 Lakh per fair /exhibition
Turnover Rs 100 Lakh and upto Rs 200 lakh Limit upto Rs 10 lakh
Turnover above Rs 200 Lakh and upto Rs 500 Lakh Limit upto Rs 20 lakh
Turnover Rs 500 Lakh and upto Rs 1000 Lakh Limit upto Rs 30 Lakh
Turnover above Rs 1000 Lakh Upto Rs 50 Lakh
ROI : As applicable for TL under MEME . 0.50 % concession to women beneficiaries
and 0.25 % concession to CGMSE covered accounts
Margin : 15-25 % of project cost
Security : For limit above Rs 10 lakh ,either CGTMSE coverage or prime /collateral
security in the form of land and building to the extent of 100 % of loan amount .
Reapyment : Maximum repayment period of 3 years with initial repayment holiday of
maximum 3 months .
Term and conditions : Minimum DSCR 1.5 . Current Ratio should not fall below 1
even after availing loan
CANARA CARAVAN (Cir 419/2014)
Purpose : Finance to transport operator ( for goods and passengers ) to purchase

new vehicle
Eligible :Existing transport operator should be income tax assessee having 3 years
of experience and requirement of minimum 5 new vehicle or minimum loan amount of
Rs 25.00 Lakhs .Minimum overall DSCR must be 1.50 and should not fall below 1
any of entire repayment period .
Quantum : Min Rs 25 Lakhs Max Rs 5.00 Crore . Sanctioned limit is valid for six
months only.
Margin is linked to score under scoring matrix given in circular and ROI is linked to
Internal Credit Risk Rating .0.50 % and 1.00 % Interest concession is applicable if
score is between 50-70 and above 75 respectively ,as per scoring matrix given in
circular .
Maximum 60 months repayment period inclusive of holiday period .
25% concession in upfront fee if score is above 75 %
For loans up to Rs 1.00 Crore ,minimum 25 % collateral security by way of land and
building or CGTMSE cover
For loans above Rs 1.00 Crore 25 % collateral security by way of land and building .
Personal guarantee of promoters / partners /Directors to be obtained
Take over not allowed .
Financing Start Ups and Early Stage Units promoted by graduates of reputed
educational institutions (616/2015)
Need based working capital ,Term Loan, NFB limits to MSME manufacturing and
service units,subject to a maximum of Rs 200 Lacs for Startup and Rs 500 Lacs for
Early Stage Units .
Promoted by graduates of reputed educational institutions
Early stage Units are units which have not completed 3 years from the date of
commercial operation/first balance sheet.
Promoters
must
be
graduates
from
IIMs/IITs/IIITs/ISBs/XLRI/IISCs/IISERs/Symbiosis Pune/Bangalore/MDI Gurgaon or
NITs).Age of the promoters must be between 20-50 years.
Minimum loan amount is Rs 10 Lacs
Margin : Working capital 25 % , Term Loan 20 %
ROI : Card rate as applicable to MSME units minus 0.25 %
Repayment for project cost upto Rs 100 Lacs :7 Years excluding moratorium, but not
to exceed overall tenor of 10 years
Repayment for Project cost above Rs 100 Lacs 7 years & in exceptional case upto
10 years, excluding moratorium, but not to exceed an overall tenor of 12 years.
Ballooning repayment may be considered depending upon cash flow pattern.
Security:
Loan upto Rs 100 Lacs: CGTMSE coverage or 50 % of the loan amount by way of
Land and Building /Approved securities/Our Bank deposit either primary/collateral
or primary and collateral put together
Loan above Rs 100 lacs: 50 % of the loan amount by way of land and building
/approved securities/our bank deposits either primary/collateral or primary and
collateral put together.
Residual value of property may also be taken into account
Specification for Land and Building:
Land and Building ( Business/ Residential building ) situated in semi
uraban/urban/metro centres whose value shall not be less than 50 % of the limit
sanctioned
The immovable property may be in the name of borrowing unit ,proprietor,
partner,director in Pvt.Ltd.Company
Agriculture land /Immovable property in the name of HUF/Thirs party property in
the name of Trusts/tenanted or partially tenanted property cannot be accepted as
security under the cheme.
Processing Charges for working capital: as applicable to Priority Sector- MSME
Upfront Fee for TL: 0.25 % of sanctioned loan amount. Minimum Rs 5000/External due diligence is made mandatory for loans proposed to be extended to
Start-Ups under this scheme.
Delegation of power vested with circle head CAC.
Scheme is valid till 10.12.2016
Canara DAL Mill Super(Cir 481/2014 )

Purpose: To extend working capital and/or term loan (domestic credit) to Dal
processing units in Micro, Small & Medium Enterprises (Manufacturing) sector. The
scheme is especially focused on catering to the business needs of Dal processing
units
Eligibility: Both existing and new Dal processing units.
Quantum: Minimum loan amount under the scheme is above Rs.10 lakhs.
Maximum Loan amount is Rs.10 Crores.
Security: Minimum Value of the Collateral Security by way of mortgage of
immovable Property in the form of land/building should be 75% of the loan amount.
ROI: ROI is linked to Base Rate and value of collateral security. Where collateral
security comfort by way of mortgage of immovable property is 100% & above of the
limit permitted: Working Capital @ BR+0.75 % and TL @ BR+1.25 %
Where collateral security comfort by way of mortgage of immovable property is 75%
& above but less than 100% of the limit permitted:Working Capital @ BR+1.00 %,
Term Loan @ BR +1.50 %
Interest concessions
a) 0.50 % in the applicable rate to women MSMEs
b) 0.25 % on loans covered under CGMSE
Rice Mill Scheme for financing Rice Mills/Shellers & Poha manufacturer (cir
275/2013 ,238/2014, 125/2015)
Scheme for financing Rice Mills/Shellers under MSME (Manufacturing) sector for
sanction of loans (OCC/ODBD and/or Term loan) with minimum above Rs.10 lakhs
upto a maximum of Rs.25 crore with special rate of interest linked to prevailing Base
Rate and based on collateral security comfort introduced.
Mortgage of immovable property acceptable to the Bank- Either Primary or
Collateral or Primary and Collateral and whose value is not less than 50% of the
limits permitted.
Rate of Interest as per security comfort. Security comfort by way of Equitable
mortgage of immovable property, Either Primary or Collateral or Primary and
Collateral put together whose value is:
100 % and above
BR + 0.50%
75% and above

BR + 0.75%
50% & above <75%

BR + 1.00%
In case of women entrepreneurs, further interest concession of 0.50% may be

extended.
Applicable term premium as per prevailing guidelines to be loaded additionally in
case of term loans.
All eligible loans granted under the scheme are to be covered under CGMSE as per
prevailing guidelines, with necessary updation in the CBS system as per BASEL
norms.
SCHEME FOR IMPLEMENTATION OF ENERGY EFFICIENT TECHNOLOGIES FOR MSMEs
[TECHNOLOGY AND QUALITY UPGRADATION SUPPORT (TEQUP)]( 524/2013, 712/2014)
The scheme is one of the ten components of the National Manufacturing

Competitiveness Programme (NMCP), aiming towards reducing cost of production
and Emission of Green House Gases (GHG) by upgrading the manufacturing
processes towards usage of Energy Efficient Technologies (EET) and encouraging
the Micro, Small and Medium Enterprises acquire product quality certification to
national/international standards from National Standardization bodies such as
Bureau of Indian Standards (BIS) and Bureau of Energy Efficiency (BEE).
The cases which were disqualified under CLCSS due to some technical errors etc.,
may apply under TEQUP scheme, provided, if those, MSMEs are eligible as per the
extant TEQUP guidelines (524/2013 )
25 % of the project cost upto a maximum of Rs.10.00 Lakhs is available as
Government Grant. Repayment period upto 5 Years, Excluding holiday period of 6
months.Scheme is valid during 12th plan Period.
Margin: 25%(Upto Rs.1 Cr), 20%(Beyond Rs.1 Cr)
The project taken up under the scheme should primarily focus on energy efficiency
for the applicant MSME units leading to at least 15% reduction in the energy
consumption by the enterprise.
No collateral security and/or third party guarantee to be obtained for loans upto Rs
10 Lakhs and all such loans are to be invariably covered under CGMSE
Scheme Steering Committee (SSC)release the grant after disbursement of the loan.
The SSC convey its decision to bank under intimation to the applicant within 10
days.
If unit becomes non operational within two years of the receipt of Govt.grant , it
should need to be refunded alongwith the interest at banks Base rate from the date
of closure till date of refund. Further concerned branches shall take necessary
action.
If it is found that Govt grant has been availed on the basis of any false
information.In such cases grant need to be refunded alongwith interest ( Banks
Base Rate prevailing at the time of invoking penal clause) from the date of disbursal
to date of refund.
Units which have availed capital subsidy under any other Government Schemes for
different projects earlier can also apply under TEQUP subject to the following:
Proposal will be recommended to the competent authority for consideration of
expansion/retrofit of unit for EET.
During expansion, duplication of machinery should be avoided and name of Plant
& Machinery should be explicitly mentioned while proposing fresh cases.
Term Loans sanctioned prior to the notification of TEQUP Scheme (i.e. Before 12th
February 2010) but the final loan disbursal has been done after date of notification
are also eligible to apply under TEQUP. Percentage of energy saving should be
mentioned by incorporating new column in the format.
Subsidy shall be reimbursed to the respective beneficiary units who have already
paid their term Loan availed under the Energy Efficient Technology (EET) cases.
BEE certified energy auditors /Managers/Competent agency are also included in
the list of auditors in addition to Accreditation Auditors for the purpose of carrying
energy Audit.
BILLS UNDER LCs (BULC) SCHEME(Cir 7/2014, 5/2014,554/2015)

The eligibility of the borrowers shall be based on the rating of the borrowers instead
of the Asset Sub-Classification Code (ASCC) of the borrowers.
The scheme shall be made available to (a) constituent borrowers (corporate/noncorporates) with highly satisfactory performance. The account shall be under
Moderate Risk and / or having external rating grade up to BB. Wherever both
internal and external ratings are available, only external rating shall be taken into
account and (b) non-constituent borrowers (corporate / non-corporates).
The scheme shall be made available for non-constituent borrowers (corporate / noncorporates) also subject to the condition that the bills drawn under LC is restricted to
our Bank and the proceeds shall be remitted to the regular banker of the beneficiary.
However, the restriction on negotiating bills under unrestricted LCs to nonconstituents shall continue. Unrestricted LC can not be discounted under the
scheme.
The minimum amount of each bill under this scheme shall not be less than 5 lacs.
Bills must be accepted /backed by SBI, Nationalised banks, Foreign prime Banks in
India and select private sector banks. for non constitutent borrower
The bills with shorter maturities may be encouraged under the subject scheme and
in any case, the usance period of bills should not exceed 180 days.
For discounting of bills beyond Rs 25 crores per party but falling under the delegated
powers of DGM-CO-CAC and GM-CO-CAC (Circle Head), prior permission shall be
obtained from CGM-HO-CAC in place of CAC of the Board.
Rate of Interest linked to Base Rate.
Proceeds should be credited to working capital banker of beneficiary. Sanction
should not be without recourse and under reserve bills should not be discounted.
Pradhan Mantri Mudra Yojana (PMMY) (281/15,400/15)
Micro Units Development and Refinance Agency Ltd (MUDRA) is launched as a new
financial entity developing and refinancing last mile financial Intermediaries like
Banks, NBFCs, MFIs etc., who are in the business of lending to Micro enterprises.
The loans given to non farm enterprises under micro enterprises segment up to
Rs.10 lakh for income generation activities with effect from 8th April 2015 shall be
classified as MUDRA loans under the Pradhan Mantri MUDRA Yojana (PMMY). In
addition to the above, the overdraft amount of Rs.5000.00 sanctioned in PMJDY
Savings Bank accounts shall also be classified as MUDRA loans under PMMY.
Depending upon the loan quantum, MUDRA Loans are classified into three
categories as under;
Slab
Loans upto Rs.50000.00 extended to Micro Enterprises
Loans from Rs.50001.00 to Rs.500000.00
Loans from Rs.500001.00 to Rs.10,00,000.00
Category
SHISHU
KISHORE
TARUN
Separate loan application NF 1010 to be used.

MUDRA Rupay Debit cards ( Non Personalised) shall be mandatorily issued to all
beneficiaries who have been granted working capital limits under the
scheme(570/15)
CANARA MSME SUVIDHA(Cir 605/13, 244/15)
Introduction of Inward Register in Automated Lending Processing System for

MSME loans. (Canara MSME Suvidha)
Inward register module along with MIS report on the proposals received,
sanctioned, rejected and pending is released which is mandatority to be done for
MSME loans.
Rehabilitation of Sick MSE ( 407/2012)
Hand holding stage:

Timely and adequate assistance to Micro and Small Enterprises and rehabilitation
effort should begin on a proactive basis when early sign of sickness are detected.
This stage would termed as Handholding Stage
An account may be treated to have reached the handholding Stage if any of the
following events are triggered
There is delay in commencement of commercial production by more than 6

months for reasons beyond the control of the promoters
The company incurs losses for 2 years or cash loss for 1 year, beyond the
accepted time frame
The capacity utilization is less than 50% of the projected level in terms of quantity
or the sales are less than 50% of the projected level interns of value during a
year.
Definition of sickness
A/c remains NPA for 3 months or more
More than 50% erosion in net worth due to accumulated losses during previous
accounting year.
MSE units which could not be revived after intervention by banks at the
Handholding Stage need to be classified as SICK subject to compliance of (a) and
(b) above.
Authority to confirm the sickness
Micro ( Mfg) enterprises with investment in P&M upto Rs 5 Lakhs and Micro
(Service) enterprises with investment upto Rs 2 Lakhs : Branch
Other Micro enterprises and Small enterprises : For outstanding amount upto Rs
25 Lakhs Branch ,For outstanding amount beyong Rs 25 Lakhs Screening
Committee set up at CO/HO
System Classification OF MSE A/Cs which are in NPA ( 477/2014, 523/2014)
System automatically classify of MSME accounts which are in NPA for 3 months or
more as Sick,. Available in BA020 under the TAB Loan/Sanction Details in CBS
FCR. The viability status of the SICK MSE units to be updated through BAM42
option.
The Automatic Classification of MSE accounts as "SICK" is enabled under FCC
also.
Canara Sahayata ( 592/2013)
Guidelines for debt restructuring of MSME advances is named as Canara Sahayata

Standard , sub standard and doubtful assets are eligible for restructuring
Loss assets, Non viable entities, uncertain repayment cases , willful defaulters
,fraud and malfeasance cases ,BIFR without express approval and accounts where
borrower is not agree with terms of restructuring are not eligible .
Loan Life Ratio : 1.25
Asset classification of Project Loans in respect of projects under implementation:
delay in commencement of commercial operations extends beyond the period of
one year from the date of completion . Fresh DCCO does not extend beyond a
period of 2 years from the original DCCO.
Viability Study : Conduct of viability Study for
a) Micro Enterprises: based on the cash flow / income generation by Branch
b) All Other Enterprises:
1.Outstanding not exceeding Rs.25 lakhs: Branch may compile the viability report.
2.Outstanding not exceeding Rs. 2 Cr, but more than Rs.25 lakhs: The viability study
may be through CA/ PAC/ PAG/ Technical Field Officers, valuer from the Banks panel
of valuer.
3.Outstanding exceeding Rs 2 Cr:
CO Sanction , the Viability by the PAC ,CO.
H.O Sanction, the viability by PAG, H.O.
For others cases consultants under the panel of CDR / IBA /reputed institution
with the approval of the sanctioning authority or GM (HO).
Relief and Concession available for the rehabilitation of Sick MSE
Micro Enterprises :Repayment/Rephasement may be fixed in convenient instalments

payable in next 5-7 years.
Small Enterprises:
1. Rephasement/Reschedulement of Term Loan in 10 Years
2. Working Capital Term Loan
The principal deficit in the WC may be segregated as WCTL.
Such WCTL may be cargved out based on DP as at the end of the month prior to
the cutoff date arrived at for restructuring.
The unduly overdue Bills liability can be considered for WCTL
Repayable in 5 years.
3. Funded Interest Term Loan
Unrecoverd interest, if any, on WC and TL may be seg regregated into FITL
Repayable within 3 years.
4. Deferment of Interest
Enterprise may not be in a position to generate enough Cash to pay debts due to
delay in commencement of operation or achieving break evern
In such cases, interest accruing for a period of maximum of 6 months may be
deferred
5. Fresh finance
May be provided by way of TL and WC Limits
To be repaid within a period of 7 years.
Minimum margin 15% from the promoter should be ensured
Promoters contribution:Promoters sacrifice and additional funds brought by them

should not be less than 15% fo the Banks Sacrifice.
Medium Enterprises:
1.Rephsement/Reschedulement of Term Loan repayable in 7-10 years

2.Working Capital Loan
The principal deficit in the WC may be segregated as WCTL.
Such WCTL may be carved out based on DP as at the end of the month prior to
the cutoff date arrived at for restructuring.
The unduly overdue Bills liability can be considered for WCTL
3.Funded Interest Term Loan
Unrecoverd interest, if any, on WC and TL may be seg regregated into FITL
Repayable within 3 years. In exceptional cases 5 years .
4.Deferment of Interest
Enterprise may not be in a position to generate enough Cash to pay debts due to
delay in commencement of operation or achieving break evern
In such cases, interest accruign for a period of maximum of 6 months may be
deferred
Repayable in 2-3 years.
5.Fresh Finance
May be provided by way of TL and WC Limits
To be repaid within a period of 7 years.
Minimum margin 15% from the promoter should be ensured
Promoters contribution:Promoters sacrifice and additional funds brought by them
should not be less than 20% fo the Banks Sacrifice or 2 % of restructured debt
whichever is higher
Financial benchmark parameters:
MSE
DSCR
Return on capital
Employed
Gap between IRR
and Cost of Capital
Min 1
Micro - Not Applicable
Small- Min ROCE 5
year govt security yield
Need not be a bench
mark
Medium Enterprises
Overall DSCR upto 1.2:1inexceptional
cases (May be upto 1:1 )
Min ROCE upto 1 % above Banks 5
govt security yield
Need not be a Benchmark .
Computed on Present
value method
Extent of Sacrifice Would not exceed 15
% of restructured dues
Computed on Present value method

Would not exceed 10 % of
restructured dues
QUESTION
1. The features of Canara MSME CAP are

a. GCMSE cover is _______________ ( mandatory / not mandatory / not eligible
).
Ans : Not eligible
b. Minimum quantum of loan is Rs ________ Lacs .
Ans : 10 Lacs
c. Maximum quantum for manufacturing unit is Rs _____ Lacs and Service unit
is Rs _____ Lacs
Ans :Rs 500 Lacs , Rs 200 Lacs.
d. Maximum Term Loan under the scheme is Rs _____ Lacs .
Ans :
Rs 200 Lacs
e. Term loan alone can be sanctioned ?
Ans : No
f. Margin for TL ,WC and NFB is _____.
Ans : 10 %
g. Repayment period for Term Loan is _____and tenability for working capital is
_______. Ans: 5-10 Years , One year
h. Property of unencumbered residential house /flat / commercial property
/Industrial property situated in ______________ centres in the name and
possession of the unit or promoters of unit either self occupied or vacant or
partially tenanted are permissible.
Ans : Merto and urban and semi
urban
i. Value of property for manufacturing unit should be________ of loan amount
and for service unit it should be _________of loan amount against the
property situated in urban and metro areas .
Ans : 100 % , 125 %
j. Value of property for manufacturing unit should be________ of loan amount
and for service unit it should be _________of loan amount against the
property situated in semi urban .
Ans : 125 % , 150 %
k. Is it mandatory to get 2 valuation even though the value of property is less
than 10 Cr.
Ans : Yes ( for every proposal )
l. Concession in processing fee/upfront fee is ______.
Ans :
50 %
m. Whether 0.50 % concession to women entrepreneur is to be considered
under the scheme.
Ans : No
n. Fresh valuation to be obtained from penal valuer in every _____.
Ans : 3 Year
o. Stock audit for LR/ NR is _______.
Ans : Waived
p. Stock audit for MR is ____________.
Ans : to be done every
year
q. Periodicity of stock statement submission and inspection is ______.
Ans :
Half Yearly
2. The features of MSE Saral are
a. Whether Proprietorship /Partnership /Pvt Ltd/ HUF/SHG/Trust are eligible :
No
b. Whether individuals are eligible under the scheme :

Ans :
Yes
c. Whether farm sector entrepreneurs can be provided assistance under the
scheme_____ : Ans :No ( Only non farm entrepreneurs )
d. Maximum amount that can be financed under the scheme is Rs _____. Ans :
5 lacs
e. Repayment period of Term loan can be granted for maximum _____ years
with ______ repayment holiday and tenability for working capital limit is _____
.Ans : 5 Years , 2-3 months , 3 years
f. Margin for loan above Rs 25000 is ___ .
Ans : 25 % ( 30 % if BD is prime
security )
g. Submission of stock statement in NF 585 / BD statement is once in ______
and stock inspection is once in _______.
Ans : Quarter , Quarter
h. Fixed asset created out of Term Loan should be inspected atleast once in a
_____. Ans : Six months
i. 0.50 % Interest concession to women entrepreneur and 0.25 % to CGMSE
covered accpunt s are to be extended under the scheme ( True / False ).
Ans : true
3. The features of MSME Vahan are
a. Whether finance for second hand vehicle is available under the scheme :
Ans : No
b. Can we finance for goods carrier or purchase of vehicle to run taxi service.
Ans: No
c. Can we finance retail traders under the scheme?
Ans : Yes
d. Maximum quantum of finance under the scheme is Rs ___.
Ans :
25 Lacs
e. Requirement of loan quantum above Rs 25 Lacs can be permitted by
_______ . Ans : Circle Head
f. Margin is ____.
Ans : 10 %
g. Quantum is calculated on the basis of average of last _____ of net profit .Ans
: 3 years
h. ROI is _______
Ans : BR + 0.50 %
i. 0.50 % Interest concession to women entrepreneur and 0.25 % to CGMSE
covered accpunt s are to be extended under the scheme ( True / False ).
Ans : False
j. AGF of CGMSE for loans uptoRs 10 Lacs is borne by Bank.( True / False )
Ans : True
k. For loans above Rs 10 Lacs , it is at the option of borrower to take cover
under CGTMSE , else collateral security to the extent of _______ of the loan
amount to be taken .
Ans : 100 %
l.
Repayment period for 4-wheeler and 2-wheeler are ____ and ____
respectively.
Ans : 84 months , 60 months
m. Whether DD is to be issued in favour of vedor / supplier ? Ans : No ( Only
RTGS/NEFT )
n. Upfront fee under the scheme is ______.
Ans : 0.25 % of loan
amount.
4. The features of Canara carvan are
a. Loan scheme is for existing Transport operators having _____ of experience
.Ans : 3 Years
b. This scheme is only for passenger vehicle only ( True / False ) .
Ans :
false ( both goos and passenger vehicles are permitted )
c. Whether working capital can be provided under the scheme ? Ans : NO (
only Term Loan )
d. Repayment period under the scheme is ______.
Ans : 60
months
e. Requirement of minimum ____ vehicles or minimum loan amount of Rs
_____ Lakhs permitted under the scheme.
Ans : 5 , 25
f. Maximum loan of Rs _____ can be granted under the scheme. Ans : Rs 5 Cr
g. Whether takeover is permitted ?
Ans : No
h. Margins are linked to scores under scoring matrix . Margin under insurance +
registration irrespective of score is ____.
Min 50 %
i. For scores between 40-75 % ,margin for cost of chassis ,cost of body and
fully built model is _____ ,_______ and ________.
Ans : 10 % , 45 % ,
15 %
j. For scores above 75 % ,margin for cost of chassis ,cost of body and fully
built model is _____ ,_______ and ________.
Ans : 5 % ,
40 % , 10 %
k. If CGTMSE cover is not available , minimum ______ % of collateral security
by way of land and building is to be obtained .
Ans : 25 %
l. Interest concession depends upon scoring matrix . Interest concession _____
% is available in case of score above 75 % , ____ % concession is available
in case of score between 50 -75 % .
Ans : 1 % , 0.50 %
m. ______ % Upfront fee concession is available in case of score above 75 % .
Ans : 0.25 %
n. Whether old vehicle can be financed under the scheme ?
Ans : No
o. Overall DSCR must be min ______
Ans : 1.50
5. The features for scheme launches for financing Start Ups and Early Stage Units
are
a. Maximum loan quantum for Start Ups is Rs _____ and Early Stage unit is
Rs_______ : Ans : Rs 200 Lacs , Rs 500 Lacs
b. Minimum Loan quantum is Rs ________. Ans : 10 Lacs

c. Age of Promoter should be between _________. Ans : 20-50 Years
d. Early stage units are units which have not completed _____ Years from the
date of commercial operation /First Balance sheet. Ans : 3 Years
e. Margin for working capital is _____ and Term loan is _____ Ans : 25 % , 20
%
f. ROI is _________ Ans : Card rate as applicable to MSME minus 0.25 %
g. Repayment for project cost upto Rs 100 Lacs is ______ years,____________
( excluding/including ) moratorium but not to exceed overall tenor of ______
Years . Ans : 7 Years , excluding , 10 Years
h. Repayment for project cost above Rs 100 Lacs is ______years,
_____________ ( excluding/ including ) moratorium but not to exceed overall
tenor of ______ Years . Ans : 7 Years , excluding , 12 Years
i. Land and building ( Building /Residential building ) situated in semi
urban/urban/metro centres whose value shall not be less than _____ % of
the limit sanctioned . Ans : 50 %
j. Upfront fee is _____ of sanctioned limit. Minimum is Rs ________/- . Ans
:0.25 % , 5000/k. Delegation of power vested with ________. Ans : Circle Head CAC
6. The features of MSE Vijeta are
a. Maximum loan Rs _______ Lacs can be sanction under the scheme. Ans:
Rs 200 Lacs
b. Margin for loan under model II ( 10-200 Lacs ) is _____.
Ans : 20 %
c. Under model I , CGTMSE premium is to be borne by __________.
Ans :
Bank
d. Under model II , if borrower wishes to offer collateral security ( by way of EMT
of property ) in lieu of CGTMSE coverage , the value of such collateral
security should not be less than _______ of loan amount .
Ans :
60 %
e. Tenability of working capital is _____ and and repayment period of Term
Loan under MSE Vijeta is ______
Ans : 2 Year , 84 months
f. ROI under model I is ________ and for LR/NR account s under model II is
______ and MR rated accounts under model II is _________. Ans : BR +0.5
% , BR +1.00 % ,BR +1.25 %
g. Concession of 0.25 % in ROI is considered if account is covered under Model
II . ( True / False )
Ans : true
h. Stock statement is submitted once in ________ and inspection is conducted
once in _________
Ans : Once in Six months , Once in
Six months
i. Inspection charges are __________.
Ans : Fully waived
j.
Whether finance can be extended to retail trade under the scheme ?Ans :
Yes
k. Processing Charges under Model I are _________. Ans : 50 % of normal
Charges for loans above Rs 5 Lacs
l. Processing Charges under Model II are_________.
Ans :
75 % of normal charges
m. Loan to retail traders can be granted under MSE Vijeta Scheme ( Yes/No) :
Ans : Yes. Trader to provide collateral 60% of of loan amount.
7. The features of MSE Smart are
a. Maximum loan quantum under MSE smart scheme is Rs _________ in metro
and Urban centres , Rs _____ at other centres . Maximum Rs ______ for
working capital .Ans : Rs 200 Lacs , Rs 50 Lacs , Rs 5 Lacs
b. Age limit for applicants are ________.
Ans 18-60 Years
c. Loan quantum for furnishing of office premises / equipment is restricted to
_______% of the eligible loan quantum subject to maximum of Rs ______
Lacs .Ans: 20 % , 20 Lacs .
d. Term loan assessment is based on minimum of a) ______ % of Project cost
.b) _____ times of net annual income for loans uptoRs 10 Lacs c ) _____
times o net annual income for loans above Rs 10 Lcas .
Ans : 75 % ,
5 times , 10 times
e. Working capital needs can be sanctioned upto 10 % of _________Ans :
previous years receipt
f. Margin on working capital is ____ and on term Loan margin is ____. Ans : Nil
, 25 %
g. Whether working capital alone can be considered ?
Ans : No
h. Whether the professional can avail loan for furnishing in his rental office ?Ans
: No
i. Processing Charges / Upfront Fee : Ans :50 % of normal charges
j. Repayment period for term loan is _____ and tenability for working capital is
_____.
Ans : 5-10 Years , 3 years
k. If loan is not covered under CGTMSE , minimum collateral by way of land and
building at ______ of loan amount is to be obtained .
Ans :
25 %
l. Loan component for construction activities should not exceed ____ of total
loan eligible amount.
Ans : 80 %
m. Mandatorily coverage of loan upto Rs ________ in CGTMSE .
Ans :
Rs 100 Lacs
8. The features of Canara MSME Expo are
a. Only exporters with a minimum turnover Rs ________ lakhs in the

immediately preceding year can avail loan under the scheme.
Ans :
Rs 100 Lakh
b. Whether any exporter not having credit limit with us can avail the loan ?
Ans : No
c. Whether OD limit can be sanctioned under the scheme ? Ans : No ( Only TL
)
d. Repayment period of term Loan is ______.
Ans : 3 years
e. Repayment holiday can be upto ________.
Ans : 3 months
f. The loan amount is need based , linked to turnover of customer and is
restricted to a maximum of Rs ______ lakhs . For the purpose of participation
in Trade fair / exhibitions the maximum loan amount is restricted to Rs ____
lakhs .
Ans : 50 lakhs ,25 lakhs
g. Margin under the scheme is _______.
Ans : 15 -25 % of the
project cost
h. If CGTMSE coverage is not opted by borrower , primary / collateral security
by way of land and building to the extent of ______ % of the loan amount
should be obtained .
Ans : 100 %
i. Minimum DSCR must be ______.
Ans : 1.5
j. Minimum Current Ratio must be ________
Ans : 1
k. If turnover is between 200-500 lacs and 500-1000 Lacs , maximum laon can
be sanctioned is Rs _______ and Rs ________ respectively.
Ans : Rs 20 Lacs , Rs 30 lacs
9. The features of Canara Contractor Scheme ( MSME Service) are
a. Whether fund based limits ( WC SOD ) , NFB-FLC,ILC ,BG and Term loan
can be provided under the scheme ?
Ans : yes
b. Whether Term loan can be granted for purchase of equipment ,construction /
purchase of office premises ?
Ans : Yes
c. Which types of contractors can be financed under the scheme ?
Ans :
Civil , Mining and constructors
d. Existing clients with satisfactory track record for last 2 Years & new clients
who confine their dealings with us can only be financed ( True/ False ). Ans :
True
e. Maximum permissible Term Loan is Rs ____.
Ans
:
5
Crore
f. Minimum permissible loan amount is Rs _____Ans : 10 Lac
g. Maximum Term loanof Rs ______ can be considered under against the
properties situated in semi urban and urban centres Ans : Rs 5 Cr
h. Need based finance subject to a maximum of ___________ of the borrower .
Ans : 9 times of TNW
i. Limit to be secured by collateral to the extent of __________ % of limit.

Ans : 125
j. Margin for TL and NFB is _______ .
10 %
k. Tenability for working capital is _____ and repayment period for term loan is
_____ and _________ years for construction activity and other than
construction activity.
Ans : 12 months , 7 Years ,5 Years
l. Processing Charges / upfront fee concession ______..
25
%
concession
m. Whether vacant sites with no superstructure can be taken as security ?
Ans : Yes ( if allotted by government approved local bodies )
n. Whether tenanted property can be accepted ?
Ans : No
o. When valuation is to be carried out from two panel valuers ?
Ans : When loan amount exceeds Rs 2 Cr
p. Whether property in the name of trust can be accepted ?
Ans : No
q. Whether stock statement need to be submitted ?
Ans : No
r. Inspection is to be conducted every _________
Ans : Half
Yearly
s. In scoring model if marks are above 75 % interest concession _______ from
applicable rate to be given and if marks are between _______ interest
concession 0.50 % from the applicable rate can be given .
Ans :
0.75 % , 60-75 %
t. Minimum value of the collateral security by way of immovable property in the
form of land and building ( situated in semi urban ,urban & metro centres)
should be ______________. Ans : 125 % of loan amount
10. The features of OD MSME scheme are
a. Maximum Loan Rs _____ can be granted under OD MSME .
Ans :
Rs 3 Cr
b. Maximum Tenability for OD MSME limit uptoRs 2 Lacs is _____.
Ans :
2 Years
c. Tenability for LR , NR and MR rated accounts under OD MSME scheme are
_______ ,________ and __________.
Ans : 18 months ,
15 months ,12 months
d. Mortgage of land and building with value not less than ______ % of the limit
sanctioned is required under OD MSME.
Ans : 125 %
e. Vacant site with no superstructure can be acceted / can not be accepted .
Ans : can be accepted if allotted by Government approved bodies
f. Tenanted property can be /can not be accepted .
Ans : Cannot be
g. Stock inspection periodicity for limit upto Rs 10 Lac is __________ and for
limit above Rs 10 Lacs is ____________..
Ans : Half Yearly ,
Quarterly
11. The features for Doctors Choice scheme is

a. Maximum loan of Rs ____ can be granted in Doctors Choice scheme.
Ans : Rs 5 Crore
b. Sub limit for working capital can be _______ % of the maximum limit subject
to a ceiling of Rs _______ .
Ans : 20 % , Rs 50 Lacs
c. _______ % margin is required ,if term loan is granted for construction of
business premises including construction of quarters .
Ans :25 %
d. ________ % margin is required ,if term loan is granted for purchase of
equipment .
Ans : 20 %
e. Margin for working capital needs is ________
Ans : 20 %
f. If loan is secured by way of mortgage of immovable property /approved
securities ,value of which should not be less than _______ % of total limit
permitted .
Ans : 50 %
g. Reapment period for term loan is _______ with initial moratorium of
________. The moratorium may be extended to __________ where
construction of business premises is involved.
Ans : 5-7 Year , 3-6
months , 12 months
h. Tenability of working capital is ___________
Ans
:
3
years
i. Simplified stock statement and /or book debt statement should be submitted
in every _____________.
Ans : Quarter
12. The features of Satkar scheme is
a. Categorization of satkat scheme is _______
Ans : MSE Service
b. Eligible constitution are _________ Ans : individual ,Proprietor ,Partner
c. Short term loan for ____ months can be granted based on stock holding
required for ______.
Ans : 12 months , 7 days
d. Maximum ceiling in rural area / villages is ___________ , Semi Urban /
Taluka Head quarter is ______ ans Urban / District Head quarter is _______.
Ans : Rs 2 Lac , Rs 5 Lac , Rs 10 Lac
e. Margin for Term loan is ______ % and Term loan is to be repaid in _______.
Ans : 15 % , 5 Years
f. Upfront / Processing charges are __________ : Ans : 50 % of normal
Charges ( nil for laonuptoRs 5 lakh )
g. AGF is to be borne by __________.
Ans : Bank
h. Frequency of stock inspection is _________
Ans : Six
months
i. ROI is ______________
Ans : BR +0.55 %
13. The features for Pragati scheme is
a. Maximum Loan _________
Ans : Rs 10 Lac
b. Margin__________________
Ans : 15 % ( Loan above Rs 25000 )
c. ROI is ______________
Ans : BR +0.55 %
d. Term Loan repayment and WC tenability is ________
Ans
:
7
Years , 3 Year
e. Processing Charges / Upfront fee is _______
Ans : 50 % of
normal Charges
f. Whether concession to women borrower and CGTMSE cover account is
available ?
Ans : No
g. Maximum moratorium is _________ 6 months
h. Simplified stock statement once in quarter for loan above Rs _____.
Ans : 2 lacs
i. Stock inspection in every ______ months
Ans : Six
j. AGF is to be borne by ___________
Ans :Bank
14. The features of Unnati scheme are
a. Minimum and maximum loan amount is _______:
Ans : Above
Rs 10 Lacs , Rs 100 lacs
b. ROI is _____________
Ans : BR +1.25 %
c. Whether the 0.50 % concession to women borrower and 0.25 % to
CGMSE covered is available .
Ans : Yes
d. Margin is ___________
Ans : 20 %
e. Term Loan repayment and WC tenability is _______ Ans : 7 Years , 3
Year
f. Processing Charges / Upfront fee is ________
Ans : 75 % of
normal charges
g. Maximum moratorium is ______months
Ans : 6
h. If BD (90 day) is held as prime security , minimum margin is _____ Ans :
25 %
i. Submission of stock statement is________
Ans : Quarterly
j. Stock inspection in every ______months
Ans: 3
15. The features of Rice Mills Scheme are
a. The maximum and minimum finance under the Rice Mill scheme are
_________
Ans : Rs 25 Cr and Rs 10 Lacs
b. Mortgage of immovable property acceptable to the Bank- Either Primary or
Collateral or Primary and Collateral and whose value is not less than
________ of the limits permitted .
Ans : 50 %
c. If security comfort is 100 % and above ROI would be _______and if security
comfort is 75 % % above ROI would be _________.
Ans : BR
+0.50 % , BR +0.75 %
d. If security comfort is between 50-75 % ROI in Rice Mill scheme would be
______. Ans : BR + 1.00 %
e. Whether further interest concession of 0.50 % to women borrower can be

extended ( Yes /No )
Ans : Yes
f. Is it open scheme? ( Yes / No )
Ans : Yes
16. The features for Flavour scheme is
a. Maximum quantum under model I and model II is Rs ____ and Rs _____,
Ans : Rs 10 lacs , Rs 100 Lacs
b. Margin under model I and model II is _______and _______.
Ans : 15 % ,
20 % of project cost
c. Appicable processing charges and upfront fee in model I and model II are
________-and __________. Ans : 50 % of normal charges , 75 % of
normal charges
d. ROI under model I and model II is _______ and __________.
Ans :
BR+0.55 % , BR + 1.25 %
e. Maximum repayment period is __________.
Ans : 7 years ( 2-3
months repayment holiday )
f. Is it Open scheme .( Yes / No )
Ans : No ( approved for 12th
plan period 2012-17
17. The features for Canara Dal Mill Super are
a. Minimum and maximum loan amount under the scheme is Rs ____ &Rs
_____.
Ans : Rs 10 Lacs&Rs 10 Cr
b. Rate of interest is linked to Base rate and _____________.
Ans :
Value of collateral security
c. Minimum collateral security by way of mortgage of immovable property is
______.
Ans : 75 %
d. If collateral security by way of mortgage of immovable property is 100 % and
above ROI in Working capital and Term Loan would be __________ and
_________.
Ans : BR +0.75 % , BR +1.25 %
e. If collateral security by way of mortgage of immovable property is 75 % and
above but less than 100 % of the limit ,ROI in Working capital and Term Loan
would be __________ and _________.
Ans : BR +1.00 % , BR
+1.50 %
f. Whether interest concession to women borrower and CGMSE covered
account may be extended ? ( Yes /N0 )
Ans
:
Yes
18. The features for Quasi equity ( Risk Capital ) scheme is
a. Minimum loan of Rs ______ and maximum of Rs ________ can be granted
under the scheme.
Ans : Rs 25 Lacs , Rs 10 Cr
b. Whether working capital can be provided under the scheme ? ( Yes /No )
Ans : No
c. Total tenure of assistance including moratorium period is _____.

Ans :
7 Years
d. Mortatorium period of principal installment is _______
Ans
:
3
Years
e. Under quasi equity capital scheme sub debt assistance should not exceed
1/3rd of the _________________ of the enterprise at the time of sanction .
Ans : Post Project Tangible Networth
f. Borrower must have ______ of profitable track record .
Ans :
3 Years
g. Whether intangible expenses like marketing , brand building ,product
development ,R & D , quality control expenditure ,energy efficiency equipment
etc can be financed under the scheme ?( Yes / No )
Ans : Yes
19. The features of TEQUP are
a. Under TEQUP ,project , government grant to the extent of _______ % of the
project cost is provided , Subject to a maximum of Rs ______ . Ans : 25 % ,
Rs 10 Lacs
b. Under TEQUP , projects upto Rs 1 Crore , promoters contribution is ______
of project cost .
Ans : 25 %
c. Under TEQUP , projects above Rs 1 Crore , promoters contribution is
______ of project cost .
Ans : 20 %
d. Repayment period under the scheme is _____ years with an initial
moratorium of _______ months .
Ans : 5 Years , 6 months
e. Minimum ____% enery savings over the baseline immediately upon
completion of the energy audit is required to release the grant by Scheme
Steering Committee.
Ans : 15 %
f. If unit become non operational within _________ of the receipt of Govt grant
,Govt grant need to be refunded along with the interest at _____________
from the date of closure till date of refund .
Ans : Two Years , Banks
Base rate
g. If it is found that Govt grant has been availed on the basis of any false
information ,Govt grant need to be refunded along with interst at _______
from the date of disbursal to date of refund.
Ans :Banks Base rate
prevailing at the time of invoking penal clause .
20. Maximum interest subvention in weavers credit card scheme is capped at
a. 3 %
b. 5 %
c. 6 %
d. 7 %
Ans : d
21. Margin money assistance is Rs ___________ per weaver to individual weavers ,
their ,SHG and JLG
a. Rs 10000
b. Rs 20000
c. Rs 25000
d. Rs 50000
Ans : a
22. Subisidized term loan and working capital loan to Handloom sector is provided at
the interest rate of _____ for a period of _______
a. 6 % , 3 Years
b. 6 % , 5 Years
c. 7 % , 3 Years
d. 7 % , 5 Years
Ans : a
23. All offline and online MSME loan applications received are to be inwarded and
sanction / disbursement / rejection details are upated in _______________
a. Sahayata Package
b. Suvidha Package
c. Satkar Package
d. MSME connect Package
Ans : b
24. Large Roasting units , small roasting units , women and SC/ST beneficiary are
eligible for subsidy support of ___ ,_____, _____ of machinery cost respectively
with a ceiling of ________ in Flavour scheme
a. 25 % , 35 % ,40 % and Rs 50 lacs
b. 20 % , 30 % ,35 % and Rs 50 lacs
c. 20 % , 25 % , 30 % and Rs 40 Lacs
d. 25 % , 35 % , 50 % and Rs 60 Lacs
Ans : a
25. In Flavour scheme ,small commercial gourmet roasting units with less than
_____ capacity are eligible for subsidy support of
_____% of the cost of
machinery with a maximum ceiling of Rs ________
a. 10 Kg , 35 % , 10 Lacs
26. In which combination the roasting, grinding and packaging machinery are
eligible for subsidy
a. Roasting machine, grinding machine and packaging machine.
b. Roasting machine and packaging machine.
c. Grinding machine and Packaging machine
d. All above
Ans :d
27. Minimum and maximum quantum under Rice Mill Scheme is : Rs 10 Lacs , Rs
25 Cr
28. If security comfort by way of equitable mortgage of immovable property is 75 %
and above ( but below 100 % ) , applicable ROI under Rice Mill Scheme is :
Base rate + 0.75 %
29. If security comfort by way of equitable mortgage of immovable property is 50 %
and above ( but below 75 % ) , applicable ROI under Rice Mill Scheme is :
Base rate + 1.00 %
30. If security comfort by way of equitable mortgage of immovable property is 100

% and above , applicable ROI under Rice Mill Scheme is : Base rate + 0.50 %
31. Minimum amount of bills under BULC scheme should not be less than Rs ____
and usance period of bills should not exceed ________.
Ans : 5 Lac ,180
days
32. Entire term loan amount (inclusive of grant portion included in the loan
component) shall be released to the beneficiary within __________ on receipt of
pro-rata grant from Coir Board.
Ans : 10 calender days
33. In case of non release of the term loan amount within stipulated time norms on
receipt of grant from coir board, Bank shall pay interest on the pro-rata grant
released by Coir Board, at_____________
Ans : Running rate of interest
on deposit.
34. Under REMOT scheme beneficiarys contribution , Bank credit and Rate of
subsidy is _____ % of project cost , ____ % of project cost and ____ % of
project cost . Ans : 5 % , 55 % , 40 %
35. Under REMOT scheme of coir board , the maximum admissible cost of project is
Rs ____ plus working capital which shall not exceed _____ % of the project cost
.
Ans : 10 Lacs , 25 %
36. The financial assistance under the IDLS scheme of IDLP will be ______of the
cost of P & M for Micro and Small Enterprises and ______ of the cost of P & M
for other units subject to a ceiling of Rs._________ for each product line.
Ans : 30 % , 20 % ,Rs 2 Crore
37. Concerned banks under IDLS scheme would also be paid fees for their services
as disbursement agency maximum of @______ of the total GOI assistance
released by them to the approved units.
Ans : 0.50 %
CGMSE
I.1.
CGMSE
(514/13,26/14 ,276/14, 546/14, 647/14, 399/15, 553/15)

1. Introduction:
Govt. Of India and SIDBI have jointly set up Credit Guarantee Fund Trust for
Micro and Small Enterprises (CGTMSE) .
Purpose is to extend Guarantee cover for loans given to Small Industries upto
Rs 100 lakhs .
The Trust has become operational from 1st August, 2000
The Scheme will come into effect in our Bank with effect from 01.08.2001.
2. Eligibility:
All credit facilities (FB+NFB) sanctioned to existing as well as newMicro and
Small Enterprises upto a limit of Rs.100 lakhs without providing any collateral
security and/or third party guarantee.
Third Party Guarantee :: Any guarantee obtained by a bank in connection
with the credit facility except from
Sole-proprietor in case of Sole Proprietary concern
Partners in case of Partnership / Limited Liability Partnership
Trustees in case of Trust
Karta & Co-parceners in case of HUF
Promoters Directors in case of Pvt / Public Limited Companies
Loans sanctioned to SEs under Government sponsored schemes and select

projects of Agri Clinic & Agri Business Centre are eligible.
Credit facilities can be extended by more than one bank and/or financial
institution jointly and/or separately upto a maximum Rs.100 lakh per borrower
Joint financing by a financial institution (e.g. SIDBI,NSIC, NEDFI) and
Commercial bank can be covered under the scheme.
CGMSE coverage is Mandatory for loans upto Rs 10 lakhs.
In respect of loans above Rs 10 lakhs and upto Rs 100 lakhs Obtention of
CGMSE cover may be waived by the respective sanctioning authority subject to
the following: The borrower provides primary security or primary and collateral
security put together in the form of land and building to the extent of 100% of the
sanctioned limit, in addition to the security of assets created out of our finance
(exposure, if more than one limits are sanctioned).. All the accounts of the
borrower shall be under standard category.
CGMSE
Credit facilities with interest rate more than 4% over base rate will not be eligible
for coverage under CGMSE.(553/2015)
CGTMSE has decided to discontinue the procedure of acceptance of Guarantee
fee by RTGS / NEFT from the Operating Offices of MLIs effective from October
1st, 2014 and remit the same by way of Demand Drafts / Pay Orders, as was
being done prior to April 21, 2014. (Cir 546/2014)
Web Portal made available for submitting application under CGTMSE guarantee
coverage under SAS.
Manual submission of applications by branches to Circles for coverage under
CGTMSE dispensed with.
Branches to upload the details of all eligible loans in the web portal on a monthly
basis before 5th of the succeeding month.
Circles to download the applications and upload the application details manually
in the CGTMSE portal.
CGPAN to be updated by Circles in the package as soon as the same is received
from CGTMSE.
Branches to down load the list of accounts where CGPAN is updated on a daily
basis and remit the requisite premium to Circle Office immediately.
Report enabled to view all accounts opened under MSME
(Classified as MSME through CIM 22 options) up to Rs.100 lakh.
Branches/Circles to generate and verify this list and ensure coverage of all
accounts under CGTMSE.
Closure details of guaranteed accounts to be properly fed into CGTMSE Portal to
avoid demand on the accounts even after closure
2.1 Credit facilities not eligible under the scheme

a) Where the risks are additionally covered:
- under a scheme operated / administered by DICGC / RBI
- By Govt or by any general insurer or any other Insurance company,
guarantee or indemnity to the extent they are so covered.
b) Any credit facility which does not conform to , or is in any way inconsistent
with, the provision of any law.
c) Any credit facility which has been sanctioned by the Bank against Collateral
security and / or third party guarantee
d) Presently loans sanctioned to retail trade, educational Institution, Training
cum incubator services, self help groups , joint liability groups and medium
Enterprises are not eligible
CGMSE
3. Guarantee Cover
Category
Micro Enterprises
Maximum extent of Guarantee where credit facility is

Upto Rs. 5 Above Rs. 5 Above Rs. 50 lakhs upto
lakhs
lakhs upto Rs. Rs. 100 lakhs (cir 26/2014)
50 lakhs
85% of the 75%
of
the Rs. 37.50 lakhs plus 50%
amount
in amount
in of amount in default
default subject default subject above Rs. 50 lakhs
to a maximum to a maximum subject to overall ceiling
of Rs. 4.25 of Rs. 37.50 of Rs. 50 lakhs.
lakhs
lakhs
80% of the amount in default .
subject to a maximum of Rs. 40 Rs. 40 lakhs plus 50% of
amount in default above
lakhs.
Rs. 50 lakhs subject to
overall ceiling of Rs. 50
lakhs.
Women
Entrepreneurs /
Units located in
North
East
Region
(including
Sikkim).
(Other than credit
facility upto
Rs.5 lakhs to
Micro
Enterprises)
All other category 75% of the amount in default Rs. 37.50 lakhs plus 50%
of borrowers
subject to a maximum of Rs. of amount in default
above Rs. 50 lakhs
37.50 lakhs.
subject to overall ceiling
of Rs. 50 lakhs.
3.1 Tenure of Guarantee Cover:

The maximum period of guarantee cover which shall run through the agreed
tenure of the term credit /composite credit .
Where working capital alone is extended, the guarantee cover shall be for a
period block of 5 years on renewal of the guarantee cover..
CGMSE
3.2 Composite all-in guarantee Fee (514/2013) :
Credit facility
Annual Guarantee Fee (AGF) (% per

annum)
Women, Micro Ent. And Others
units in North East
Region (incl. Sikkim)
Upto Rs. 5 lakhs
0.75
1.00
Above Rs.5 lakhs and upto 0.85
1.00
Rs.100 lakhs
Plus Service tax on the above is payable.
Guarantee fee shall be paid upfront to the Trust. And remittance of the
guarantee fee to be made by way of demand draft/pay orders.
If not paid, no guarantee cover.
In case trust agrees for continuation of guarantee. Cover, penal interest at
4% over Bank Rate per annum.
3.3 Guarantee coverage for credit facilities above Rs. 50 lakhs - Internal
guidelines (514/2013).
Credit facilities of above Rs. 50 lakhs under CGMSE scheme may be extended to
the eligible enterprises, subject to the following;
i.
ii.
iii.
Viability parameters:
a. Current Ratio 1.25 % and above.
b. Promoter's contribution minimum 30% of project cost.
c. Debt Equity Ratio 2:1
d. Overall DSCR- 1.50 and above.
e. Fixed Assets Coverage Ratio(FACR) 1.4 and above
f. Internal Rate of Return (IRR) 5% and above from estimated weighted
average cost of funds.
g. Repayment Period (in respect of Term Loans) Up to 6 years excluding
moratorium period
All proposals above Rs. 50 lakhs will have to be rated internally and accounts
with Risk Rating of LR 1, 2,3 and Normal Risk (NR) only to be considered for
financing.
The coverage of MSE borrowal account under CGMSE beyond Rs 50 lac shall
be permitted by the respective sanctioning authorities provided the stipulated
bench marks complied with.
CGMSE
4. CLAIMS / INVOCATIONS OF GUARANTEES:
4.1 Conditions:
The Guarantee in respect of that credit facility is in force. At time of account
turning NPA.
The lock in period of 18 months from either the date of last disbursement of
loan to the borrower or the day of payment of the guarantee fee whichever is
later has elapsed.
The amount due and payable to the Bank has not been paid and the dues have
been classified as NPA.
The loan facility has been recalled and the recovery proceedings have been
initiated under the due process of law.
4.2 Invocation of guarantee
The Lending Institution ( i.e. bank) may invoke the guarantee in respect of
credit facility (406/2012):
(a) Within a maximum period of 2 years from the date of NPA, if NPA is
after lock in period of 18 months.
(b) Within 2 years of expiry of lock-in period, if NPA is within lock-in
period, if the conditions are satisfied.
(The lock in period of 18 months from the date of last disbursement of the loan
to the borrower or the date of payment of the guarantee fee in respect of the
credit facility to the borrower, whichever is letter , has elapsed)
Initiation of legal action for invoking of Guarantee is waived for credit facility up
to Rs.50,000 /- :: condition : an executive committee not below the rank of GM
should examine all such a/c and take a decision for not initiating the legal action
and filing claim under the scheme.
4.3 Settlement of claim: The trust shall pay 75% of the guaranteed portion of the
outstanding in default amount on preferring of eligible claim by the lending
institution within 30 days, subject to being otherwise found in order and complete
in all respect
The balance 25% will be paid on conclusion of recovery proceedings. or
after three years of obtention of decree of recovery whichever is earlier.
Any subsequent recovery shall be deposited by the Bank with the trust on
prorate basis in proportion to the % of settlement.
In case of rephasement of term loan, Branches have to necessarily keep the
Trust in formed
CGMSE
4.4 . FAQs and MCQs
1. Maximum amount of guarantee coverage in respect of CGMSE covered
account has been reduced to Rs . Lakh
a)50
b)62.5
c)65
d)100
2 Is it necessary that a borrower to be eligible should obtain all the
required credit facilities from a single institution?
Credit facilities can be extended by more than one bank and/or financial
institution jointly and/or separately to eligible borrower upto a maximum upto
Rs.100lakh per borrower subject to ceiling amount of individual MLI or such
amount as may be specified by the Trust.
3. Whether Group of accounts/sister concerns are to be treated as single unit
for coverage or each unit of the group/sister concern is to be covere d
separately.
Each unit of the group/sister concern, conforming to the definition of
Micro and Small Enterprises and meeting the other terms and conditions of the
guarantee scheme, is eligible separately for guarantee cover.
4.Whether loans sanctioned under Scheme for Micro-financing joint
Liability groups(Handloom weaver & Agarbathi manufacturer groups)
can be covered under CGMSE?
As per the extant guidelines, coverage cannot be extended to credit facility
sanctioned to joint liability group.
5. What is quantum of credit facility that can be covered under the Scheme?
Fund and non-fund based (Letters of Credit, Bank Guarantee etc.)credit
facilities up toRs.100lakh per eligible borrower are covered under the guarantee
scheme provided they are extended purely on the project viability without
collateral security or third party guarantee.
6. ............. have jointly set up Credit Guarantee Fund Trust for Micro and
Small Enterprises (CGTMSE) .
a)GOI & SIDBI
CGMSE
B) GOI & NABARD
c) RIDF&SIDBI
d) SMERA & CRISIL
7. Can a credit facility extended to a borrower against a collateral security be

covered under the Guarantee Scheme if the lending institution relinquishes its
rights on the collateral security?
Yes, provided the lending institution relinquishes its rights on the collateral assets and
releases the same in favor of the borrower prior to seeking guarantee cover and
provided it conforms to the other norms of the Scheme.
8.Can a credit facility without any collateral security/third party guarantee
extended to a MSE unit who has already availed a credit facility against
collateral security be covered under CGMSE?
Yes, provided the said new credit facility is without collateral security/third party
guarantee if it is otherwise eligible for guarantee cover.
9. What are the Recovery Proceedings that have to be initiated under the due
process of law before invoking guarantee?
Before invoking guarantee with CGTMSE, the Bank has to initiate recovery proceeding
s by filing petition s before any one of the following body/authority:
i. Civil courts
ii. Debt Recovery Tribunal(DRT)
iii. Competent Authority under Revenue Recovery Proceedings iv. Lok Adalats
Competent Authority under SARFAESI Act, 2002etc.
10. Is it possible to cover credit facilities which have already become NPA?
No
11. Whether loans sanctioned under Govt. Sponsored schemes like PMRY,
NRLM etc .and KVIC schemes are eligible for coverage under the Credit
Guarantee Scheme?
Loans sanctioned under Govt. Sponsored schemes like PMRY, NRLM etc.
and KVIC schemes are eligible for coverage under the Credit Guarantee Scheme .The
payment of Guarantee/Service Fee on such loan accounts would be exclusive of
subsidy received/receivable (wherever applicable).Such Guarantee/Service Fee has
to be borne by the concerned borrowers .The subsidy/margin money
amount(received/ receivable)is required to be separately indicated as equity type
assistance in the CGTMSE application form.
CGMSE
12. Lending institution is required to obtain prior permission of the Trust for any
OTS compromise with the borrowers .Will this not affect speedy recovery efforts
of the Member Lending Institution?
The Trust is not against any one - time settlements with the borrowers by the lending
institutions.Since75%of the credit advanced by the Lending Institution has been
guaranteed by the Trust ,it should be considered fair and transparent to seek prior
permission of the Trust. Since communication between the Trust and the lending
institutions can be established ON-LINE through internet, there should be no delay in
getting approvals from the Trust for such compromise settlements
13.Certain credit facilities are already extended to a borrower with cover under
Credit Guarantee Scheme .Can additional credit facilities be extended to the
same borrower taking collateral and/or third party guarantees?
Yes, this is permissible .However, both sets of credit facilities are to be accounted
separately.
14.Certain credit facilities are already extended to a borrower by taking collateral
and/or third party guarantees .The borrower is going in for expansion and is
unable to offer collaterals for additional finance required. Can these additional
credit facilities be extended by taking cover under Credit Guarantee Scheme?
Yes, this is permissible up to the maximum permissible limit (presently, Rs.100 Lakhs).
However, both sets of credit facilities are to be accounted separately.
15. Is guarantee cover available if Business Stocks already available as primary
security to cash credit facilities ,are also taken as collateral security*for term
loans permitted by the Bank?
Yes, this is permissible under the Scheme.
16. Is guarantee cover available if existing fixed assets (unencumbered) of the
firm/promoter is taken as collateral security*to cash credit limits?
This is permissible under the Scheme if the assets owned by the firm/promoter share
related to the business being financed by the Bank.
17.Is guarantee cover available if fixed asset acquired out of term loans is taken
as collateral security*to cash credit limits?
Yes, this is permissible under the Scheme.
18. Can a lending institution go for onetime settlement (OTS) in respect of
defaulted cases which are covered under the Scheme?
Yes, the lending institutions, however, required to seek the consent of the Trust prior to
going ahead with OTS.
CGMSE
19.Where the credit facilities are covered under ECGC ,is it possible to avail
guarantee to cover the extent not covered by ECGC ,under CGMSE guarantee
scheme?
Any credit facility which has been covered partially or fully under the Guarantee
Scheme of any other Agency will not be eligible to be covered under the Credit
Guarantee Scheme operated by the Trust.
20.Is service fee payable even after lodgment of claim?
Yes, Annual Service Fee is required to paid after lodgment of claim till settlement of
first installment of 75% of the guaranteed amount
21. . In which of the following cases , the claim payable by CGTMSE is not 80% for
loans up to Rs 50 lacs ?
a)Beneficiaries in north east
b)Woman beneficiaries
c)SC/ST beneficiaries
d)None
22. What is the time limit for seeking guarantee cover?
Applications for guarantee cover are required to be lodged with CGTMSE by the end
of subsequent quarter in which the credit facilities are sanctioned/renewed.(That is
,lodging applications for guarantee cover in respect of credit facilities
sanctioned/renewed in the quarter April-June, July-September, October-December
January- March should be made prior to the expiry of the following quarter viz .,JulySeptember, October-December, January-March and April- June respectively.
However, it is advised that the branches/offices lodge the application for
guarantee cover within one week of sanction/ renewal of credit facilities ,even though
the disbursements are not made immediately.
23. . IN CGTMSE BORROWER BELONGS TO NON WOMEN AND NON NE REGION
HAVING 60 LAKHS LOAN . WHAT WILL BE Guarantee CLAIM AMOUNT
a)
b)
c)
d)
.
40 lacs
42.50 lacs
45 lacs
50lacs
CGMSE
24Whether the interest on term loan and other charges can also be guaranteed
by the Trust?
In case of default by the borrower subject to over all guarantee cap amount, the liability
of the Trust in respect credit facility shall be as follows:
i. Term loan
Default principal amount + outstanding interest *
ii. Working capital facility
Outstanding working capital advance inclusive
of interest
*Accordingly, the accumulated unpaid interest up to the date of borrowers account be
coming NPA can be included in the amount in default in respect of term loan and/or
working capital for preferring any claim on the Trust against the guarantee cover.This
is applicable in respect of term loan proposals which are approved under the scheme
effective from 01.02.2005.
Other charges such as commitment charge, service charge or other levies/expenses
shall not qualify for the guarantee cover.
25 Whether the credit facility for rehabilitation/nursing of the sick unit can also
be eligible for guarantee under the Scheme?
The eligible borrower unit has been covered under the Scheme subsequently becomes
sick due to factors beyond the control of the management ,the assistance/credit for
rehabilitation extended by the lender could also be covered under the Scheme
provided the overall assistance is within the credit cap of Rs.100lakh,for such extended
period of guarantee and on such terms as may be decided by the Trust.
26What is the tenure of the cover for credit relating to working capital?
The tenure for coverage of working capital facilities is 5years,where working capital
alone is covered under the scheme .In case term credit and working capital both are
covered under the scheme, the tenure relating to working capital facility would match
the normal repayment period of term credit. There as on for keeping a limit of5 years
wherever working capital alone are covered are that the period for which the same are
extended by the lending institutions are not time bound. The same are reviewed
periodically for increase/decrease in the limit sanctioned ,and are expected to continue
for a time frame much longer than 5years.CGTMSE welcomes any renewal of
guarantee cover beyond 5 years on a payment of Annual guarantee fee at specified
rate or such rate, as may be prescribed from time to time.
CGMSE
27. Whether the guarantee will continue to be available in respect of a particular
borrower unit if there is change in management of that borrower during the
period the guarantee is in force?
If the new promoters/management, meet/satisfy the norms of the eligible borrower ,viz.,
maximum credit availed and outstanding, Micro and Small Enterprises status etc., and
continues to perform the existing activities of borrower or undertakes the new activities
which otherwise are eligible under the Scheme for guarantee then the lender can
continue such borrower with existing liabilities under the scheme of guarantee.
However, if the new promoter/management does not satisfy any of the norms of the
Scheme ,the guarantee in respect of the credit facility shall be deemed to be
terminated from the date of said transfer or assignment.
28.. The extent of coverage under CGTMSE for Micro units upto Rs 5 lacs:
a)85%with maximum amount of claim upto Rs 4.25 lacs.
b) 80% with maximum amount of claim upto Rs 4.00 lacs
c)75% with maximum amount of claim upto Rs 3.75 lacs
29. Initiation of legal action for invoking of Guarantee is waived for credit facility
Upto.......... condition : an executive committee not below the rank of GM
should examine all such a/c and take a decision for not initiating the legal
action and filing claim under the scheme.
a)25000
b)50000
c)100000
d)500000
.
30.Annual Guarantee Fee payable for coverage under CGTMSE for loans upto Rs
35 lacs to Mrs. Reena is
a) 0.75% of loan amount
b) 0.85% of loan amount
c) 1.00% of loan amount
d)No fee payble for this amount
.
CGMSE
31. What is meant by conclusion of recovery proceedings?
The recovery proceedings would be stated to have been concluded after the decree for
recovery has been passed by a Court of Law.
32 A loan was granted to Mrs. Abc for Rs 68 lacs and covered under CGTMSE. In
case of default, Guarantee cover available is Rs_________.
a)
b)
c)
d)
40 lacs
49 lacs
45 lacs
50lacs
33. Guarantee cover of CGTMSE is available for

a)
b)
c)
d)
Medium Enterprises only

Micro enterprises only
Small Enterprises only
Both Micro & Small Enterprises
34. Once a claim is preferred under CGTMSE, Trust will pay _________percent of
claim within 30 days.
a)
b)
c)
d)
25
50
75
100
35. Credit facilities with interest rate more than over base rate will not be
eligible for coverage under CGMSE
A)2%
B)3%
C)4%
D) Upto 50lacs 2% & above 50 lacs 3%
AGRICULTURE SCHEMES
1. REVISED KCC SCHEME [enabled with Debit (RuPay) Cards]
Purpose: Cultivation & other short term needs including consumption and Term Loan requirement.Sub limit-I
as per formula.
Sub limit-II - 3 years net annual income of the farmer (Max 5 Lakh)
In case the farmer is an existing borrower and has term loans, then the sub-limit is to be arrived after
Deducting existing liability under term loan inclusive of undisbursed portion of the limit, if any. The Sub-limit is
not a revolving facility. At the time of Annual review the Sublimit - II shall be reinstated to the extent of
repayment of Principal made during the year.
Validity is 5 years(Annual Review- NF974). Annual review does not require presence/signature of the
borrower. Respective sanctioning authority can permit renewal of limit after expiry upto 2 years. Term loan
repayment with in 5 year from date of disbursement.
10% annual increase in WC Limit. Suppose first year limit is X as per formula than subsequent year limit will
be as under.
IInd year limit- X(1.1)
IIIrd year limit- X(1.1)^2
IVth year limit- X(1.1)^3
Vth year limit- X(1.1)^4=1.4641X
Each withdrawal under the short term sub-limit to be liquidated in 12 months (short term crops)/18 months (in
case of long term crops). There is no need to bring the debit balance to Zero at any time. A KCC/Kisan
Suvidah
account is considered nonperforming when a drawal and interest demanded, remains unpaid for a period of 2
crop seasons in case of short duration crops. In case of long duration crops, account becomes nonperforming when a drawal and interest demanded, remains unpaid for a period of one crop season.
Folio Charges @100/- per Quarter (cir 193/2013).
KCCS-Processing fee to be collected at the time of sanction for the 5th year limit which will be the sanctioned
limit.
At the time of Annual review: Collection of 25% of normal processing fee in case of limits above Rs.5 lakhs
(with/without enhancement in limit).(Cir 337/2013)
Payment of interest on par with SB account on credit balance in KCCS account.
KCC borrowers will be issued RuPay debit cards that shall be linked to their KCC(Revolving sub limit)
through CASA account(Product 226)
Kisan RuPay debit cards to be issued in case of KCCS loan accounts with joint borrowers by taking an
undertaking/authorization(Cir 276/2013)
CASA(226) account should be opened with Sweep in(CHM39) Sweep out facility(CHM32)
In CASA a/c minimum balance maintained should be zero and cheque book & RuPay Debit Card should be
issued through this account only.
Permitted facilities- ATM, POS, Internet, Mobile Banking Branch sanction KCCS to be sanctioned within
15 days from the receipt of application completed in all respects.
Department of Financial Services, Ministry of Finance, Govt.of India had constituted a Working Group
(Chairman: Shri T M Bhasin, C&MD of Indian Bank) to review KCC Scheme and suggest changesEligibility:
All Farmers Individuals / Joint borrowers who are owner cultivators Tenant Farmers, Oral Lessees &
Share Croppers.
SHGs or JLGs of Farmers including tenant farmers, share croppers etc.
Presently only individual farmers will be issued RuPay debitcards as per the revised Scheme.
KisanRupay Debit Cards Joint borrowersissued taking undertaking/authorization from joint borrowers
& issued in the name of borrower so requested ( CIR 276/2013)
Scheme components: Revised Scheme has two components
Working capital (with a tenability of 5 yearsand a term loan component (with a tenor of 5 years).
KCC borrowers will be given Debit cards (RuPay) as designed by NPCI with the Banks branding.
Presently the card is a magnetic stripe card operated with PIN.
Particulars
i) Crop maintenance (A)
ii) WC requirement for allied activities (B)
and for farm machinery maintenance (C)
iii) Sub limit for consumption need (D)
iv) Sub limit for non farm sector(E)
Sub limit I
Norm
As per scale of finance
Maximum 25% of (A)
10% of (A+B) subject to a
maximum of Rs. 15000/20% of the projected turnover
Not exceeding 25% of (a) + (b)
(A)+ (B) + (C) + (D) + (E)
Presently RupayKisan debit card will be issued only for short term operative limit
Assessment of Limit: (i) Short term operative limit:
Current year short term operative limit requirement (as per existing norms):
Limit will be 5th year requirement assessed with 10% annual increase projected over current year requirement(
Subjected to annual review). However, withdrawal will be limited to the respective years assessment of
credit limit.
Term Loan component:.Sub-limit II shall be limited to 3 times the annual net income, maximum
Rs. 5 lacs.
Flexi KCC - For Marginal Farmers and Tenant farmers- LimitRs. 10,000/- to 50,000/- plus small term loan
investments as per assessment of Branch Manager.
Delivery Branch /ATM/ POS.
Repayment: Short term WC sub component -Each withdrawal under sub limit I to be liquidated in 12
months (short term crops)/18 months (in case of long term crops).There is no need to bring the debit balance
to Zero at any time.
Term loan component normally repayable within 5 years.
Insurance / PAIS / Crop Insurance:
Crop Insurance is mandatory.
The PAIS (Personal Accident Insurance Scheme) & Asset Insurance may be left to the option of the
borrower.
IRAC Norms
A KCC account is considered non-performing when a drawal and interest demanded, remains unpaid for a
period of 2 crop seasons in case of short duration crops.
In case of long duration crops, account becomes nonperforming when a drawal and interest demanded,
remains unpaid for a period of one crop season.
Folio Charges @100/- per Quarter.
Branch power KCCS to be sanctioned within 15 days from the receipt of application completed in all
respects
Sanctioning authority may consider a higher quantum of loan for crop maintenance to the extent of 15-25%
over and above the scale of finance.Loan limit should not exceed 50% of value of the produce.
For any genuine reason, if the borrowers cannot mortgage the entire land on which they are going to raise
the crops, loans against the security of part of the land valued twice the loan amount may be permitted.
Interest Subvention:Interest subvention for short term Crop production loansto farmers up to 3 lacs.Interest
subvention of 2% available for a maximum period of one year.Incentive Interest subvention of 3% for
prompt payment subject to a maximum period of one year. Net effective ROI will be 4%(9-2-3=4%).
Security 437/2013 - Based on 5th Yr. limit- Upto 1.5 lakhs-Hyp.Above 1.5 lakhs - Hyp. + Mortgage.
Note- However for loans above Rs.1 lakh, charge is to be created on lands wherever provision for charge
creation is available (online/Manual). Mortgage waived up to 3 lakhs for Tie up arrangement.
PERSONAL ACCIDENT INSURANCE SCHEME (PAIS):
KCC holders are covered upto the age of: 70 years.
The Maximum coverage under KCCs PAIS - Rs. 50000/-;
Risk Coverage : Rs.50,000/- for death/permanent disability, Rs. 25,000/- for partial disability.
Period of insurance - 1 year from the date of receipt of Insurance premium.Nominee has to give notice of
death of borrower to bank with in 30 days. The Maximum Annual premium - Rs.15/- per KCC Holder. (out of
which Rs.5/- is to be recovered from the borrower and the balance of Rs.10/- will be absorbed by the Bank).
The claim should be settled within a period of 30 days from the date of receipt of claims by the Insurance
Company.
The PAIS & Asset Insurance for term loan is optional. If waiver is sought same to be recorded in application
form.
National Crop Insurance Programme by Agriculture Insurance Corporation of India Ltd.(Cir 307/14,
376/15)
At present the following crop insurance schemes are being implemented by our Branches:
i) Rashtriya Krishi Bima Yojana (National Agricultural Insurance Scheme- NAIS). ii) Modified National
Agricultural Insurance Scheme(MNAIS).
iii) Pilot Project on Weather based Crop Insurance Scheme (WBCIS). Agricultural Insurance Company of India
Ltd.,(AIC) has informed that the above schemes have since been withdrawn and in its place NATIONAL
CROP INSURANCE PROGRAMME(NCIP) having following 3 scheme components has been introduced:
Name of the scheme
1.Modified National Agriculture Insurance Scheme (MNAIS )
2.Weather Based Crop Insurance Scheme (WBCIS)
3.Coconut Palm Insurance Scheme (CPIS)
The important features/improvements in component schemes of NCIP are:
i. The minimum indemnity level under MNAIS would be 80% as against 60% under NAIS and 70% under pilot
MNAIS. The implication will be that the excess borne by the insured farmer is considerably lower as compared
to the erstwhile schemes.
ii. Provision for add-on/index plus products for horticultural crops for compensating losses due to hailstorm,
cloudburst, etc. under WBCIS component.
iii. Improved basis for working out threshold Yield thus increasing the effective Guaranteed Yield for the
farmer.
iv. Unit of insurance has been brought down to Village Panchayat for major crops in MNAIS component thus
reducing the basis risk i.e., the possibility of the claim being different from the actual loss.
v. NAIS was an administratively priced scheme whereas MNAIS and WBCIS are actuarially(commercially)
priced. However, the premium is highly subsidized by the State and Central Governments. The upfront subsidy
from government ranges from 25% to 50% under WBCIS and 40% to 75% under MNAIS.
2. KISAN SUVIDHA SCHEME (Cir 217/05, 264/2007):
Kisan Suvidha Scheme (Cir 217/05, 264/2007):
Working Capital(for crop, allied activities) and Term Loan needs
Assessment of sub limit I is done using the same formula we use for KCCS
Under Sub limit 2 ie for term loan quantum is 3 years net annual income of the farmer with max. `5 lakhs
Validity is 5 years
Working capital drawings to be repaid in 12-18 months and each Term loan in 5 years from the date of
disbursement.
Folio Charges @`100/- per folio ie 40 entries. Debited Quarterly(Cir 193/2013)
Processing fee to be collected at the time of sanction for the 5th year limit which will be the sanctioned limit.
At the time of Annual review: Collection of 25% of normal processing fee in case of limits above Rs.5 lakhs
(with/without enhancement in limit).(Cir 337/2013).
3.
CANARA KISAN OD SCHEME :
Eligibility:
Individuals / Joint Borrowers, Partnership Firms, Pvt Ltd Co. and Public Ltd. Cos who are owner
cultivators / engaged in allied activities.
Agriculturists with One year satisfactory dealings.
Purpose:
WC requirement Allied activities , Farm Machinery.

Repairs and Replacement of machineries, Improvement of developmental nature.
WC requirement for non farm sector.
Repayment of genuine private debts (maximum finance / sublimit Rs.1.00 lakh).For crop
cultivation expenses, KOD should not be sanctioned as KCC and KisanSuvidha Schemes are
available.
Limit :
Minimum Rs.1 lac (427/2010).

Maximum 4 times gross annual income subject to a ceiling of Rs.7.50 lacs [Circle can permit
higher limit up[to Rs.12.50 lacsat such of the designated branches where the recovery
percentage under the Scheme is above 90%.(Cir 427/2010).
Ceiling per acre mortgaged:
Rs1.0 lakh per acre subject to 50% of value of mortgaged landed property.Basing on land value in
that state/district and 50% margin required,Circle can fix Rs.1.50 lakh per acre or less (Cir
427/2010).
Others
4.
Folio Charges @ 100/- per folio i e 40 entries. Debited Half Yearly along with Interest (Cir
152/2011).
Tenability : 3 years subject to annual review.
Eligible for ATM card.
Interest: Interest has to be debited half yearly, September/March. Interest debited is to be
recovered within a maximum period of 90 days.
KrishiMitraTarget Group - Tenant farmers including Oral lessees, sharecroppers and farmers having lands without
proper records for cultivation of crops, maintenance of animals and farm machinery, repairs / replacement of
machineries and replacement of animals. Either Running limit or TL.
Maximum Limit 50,000/Security: Hypothecation of crops cultivated. To be treated as secured limit.
Margin: As per Scale of finance for crop cultivation. Nil for other purposes. Minimum 50% of the limit shall be
for crop cultivation requirement.
Identification of Tenancy / extent of cultivation and crops grown: Only based on an affidavit (self
declaration) by the applicant giving details of land tilled / crops grown without any need for independent
certification.
Repayment:WC- 3 years. No repayment stipulated for principal portion, However interest debited becomes
due in 90 days. TL:Repayment in 5 years.
5.
KisanTatkalCredit for farmers to meet their post harvest expenses like processing of produce, holding expenditure etc.
Eligibility- All existing KCC holders, whose cards are valid and accounts regular. Individual farmers / joint
borrowers (not exceeding 4 farmers).
Quantum-Term loan- Min. 1000/-, Max. 50000/-.
Loan not to exceed 50 % of KCCS limit and shall not exceed 25% of the estimated annual income of the
agriculturist within the above ceilings.
Existing security/ies obtained for KCC to be continued. No additional securities.
Farmers enjoying KisanTatkal are also eligible for our normal production, investment and development loans
under Agriculture.
Repayment: 3-5 years in half yearly/ annual installments based on the income generation pattern.
6.
Kisan all-purpose term loan:A convenient single shot term loan limit to farmers for all term loan requirements.
However development projects with a long gestation period shall not considered (e.g. Mango plantationrequiring gestation of 6-7 years).
Purchase of Tractors, Combine Harvesters, and Cars are out of the purview of this Scheme.
Long term need for 2-3 years plans to be financed (one of the activities to be currently availed), with a simple
letter of undertaking.
The drawl to be permitted for each of the purposes specified according to plan.
Quantum: With an upper cap of Rs. 20 lakhs, subject to 5 times of current-pre development stage
annual farm income or 50% of the value of land mortgaged. (for aggregate loan above Rs.1 lakh).
Repayable within 9 years, irrespective of individual investment/development sub Component.
7.
JOINT LIABILITY GROUPS (JLGs):

This scheme is renamed as Scheme for Financing Joint Liability Groups (JLGs) of Tenant Farmers and
oral lessees.
Eligiblibility:
Tenant farmers or oral lessees including share croppers,
Farmers having very small uneconomic land holdings,
Farmers holding land without proper records.
Groups can be formed with active involvement of reputed NGOs/Voluntary agencies.
CONSTITUTION OF THE GROUP:
The membership of a group shall not be more than 20.
However it is preferable to have 4-10 members for better cohesion.
ASSESSMENT OF LIMIT:
The following stipulations of SHGs are not applicable for financing JLGs.
a. Active existence for atleast a period of 6 months.
b. Successful undertaking of savings and credit operations from its own resources.
c. Rs. 100,000 per member. However, exposure per group for the purpose of raising of crops shall not
exceed Rs.10 lacs.(Cir. 577/2014)
d. Loans given to JLGs are to be treated as clean advances.
RATE OF INTEREST: The rate of interest to members for raising of Crops should be made available at
the same rate and interest subvention wherever applicable should be extended
CROP INSURANCE- To be covered under crop insurance.
Interest subvention is applicable to this scheme also.
The cap of Rs.3.00 lacs stipulated under interest subvention scheme is with regard to per member limit and
not for the limit to the group as whole.
NABARD is providing an incentive of Rs. 2000 per JLG to bank for forming, nurturing & financing JLG on
annual basis over a period of 3 years.
Post sanction inspection : Shall be made for at least 25% of members in a group.
8. SELF HELP GROUPS
SHG is a small group consists of 10-20 members.

Group should be in active existence for at least 6 months.
Group should have successfully undertaken savings and credit operations from its own resources.
Group to maintain proper records and accounts & work democratically.
Group members should have homogenous background and common interest.
The SHGs will not be in a position to offer any collateral security. Where assets are created out of
SHG finance, the same can be taken as prime security
Bank to obtain 10% of the limit as collateral security by way of Bank deposits for loans more
than Rs.1 crore to NGO-MFIs/NBFC-MFIs.
Direct lending to Self Help Groups (SHGs) upto 1:4 of savings and beyond, in cases satisfying norms.
Housing finance to members of SHGs to maximum amount of Rs.75000/- per member.
9. Cash Credit Limits to Self Help Groups:
Internal lending or for starting any productive activity.

SHG is a small group consists of 10-20 members.
Group should be in active existence for atleast 6 months.
The loan requirement of a group shall be assessed taking into account the rate of savings at the time
of assessment. The total savings of the group for five years at this rate shall be calculated. The
amount which a Group will be entitled to have in the ratio of 1:4 after projected savings of 5 years shall
be arrived.
Branches shall sanction cash credit limits to SHGs for a period of 5 years.
Even though the cash credit limit requirement for five years is sanctioned to the SHGs, the drawing
limit shall be permitted after six months. For this purpose, the total savings of the group for the initial
period of six months shall be taken. The quantum of loan shall be 1:1 of the savings. The
disbursement limit would be reviewed thereafter every year and enhanced in the ratio of savings as
prescribed by RBI. The maximum limit can be sanctioned to the SHGs would be 1:4 Beyond this, the
Group should submit Micro credit plan for considering loans beyond the ratio of 1:4 .
Loans to SHGs shall be sanctioned by way of cash credit limit except in the following case:1. In Case of Govt. schemes which have back ended subsidy and release of subsidy is contingent
on repayment of term loans.
2. Whenever SHGs under take group activities and the term loans are taken by the Groups to
undertake such group activities.
JANASHREE BIMA YOJANA

Death Cum Disability insurance scheme operated by the L I C Of India.
All Credit Linked Women SHGs members are eligible to be covered.
Premium - Rs.200/- per annum per member (Rs. 100/- subsidy by GOI)
The members should have completed the age of 18 but below 59 years.
Age proof in the form of School certificate/Transfer Certificate/Birth Certificate/Voters' identity

Card/Driving license/ration card, / Voter's list/ Any identity card issued by Government or PSU, or a
certificate from Public Health Centre ( PHC) or Government hospital , should be produced.
Persons below poverty line or Just above the poverty line are eligible to be covered under the policy.
The period of coverage is only for one year. The policy should be renewed every year by paying a
premium of Rs.100/- per member for all the members.
Sum assured
under the policy
Natural death
Death due to accident
Permanent disability due
to accident
Loss of both legs, both hands,
both eyes
Loss of One leg One Hand and
One eye
Rs.30000/Rs.75000/Rs.75000/Rs.75000/Rs.37500/-
SHIKSHA SAHAYOG YOJANA: The parent of the child should be member of JanashreeBimaYojana.
Two children of the policy holders are eligible. The amount of scholarship is Rs.1200/- per year. Rs.600/- is
paid half yearly through the nodal agency.
The children who are studying in 9th to 12th class (Intermediate or ITI) are eligible.
The scholarship shall be for academic year July to June.
The scholarship shall be paid for a maximum period of four years or till the student completes 12th standard,
whichever is earlier.
The number of scholarships is restricted to 15% of total number of members covered under master policy and
will be given to poorest of the poor.
If a student fails or is detained in the same standard, he/she shall not be eligible for scholarship for the next
year in the same standard.
The branch shall submit a list of beneficiary students with full details such as name, master policy number,
membership number in the proforma given by LIC.
10.
MICRO CREDIT GROUPS

Eligibility
The group of people not exceeding 10 belonging to economically disadvantagedsections are eligible
for availing the Credit facility.
The minimum and maximum number of members in a group is restricted to 3-5 in urban areas and 510 in rural and Semi urban areas.
The group members individualincome does not exceed Rs.50000/- PA.
Members should be permanent residents of the area for the last three years.
Not more than one personfrom a family can be included in a group.
The members should not be a member of any other SHG/MCG.
The MCG or its members should not be a borrower/defaulter to any other Banks/FIs and co operative
societies. Group member has to give a declaration to that effect.
Along with loan for income generating activity, loans could be given to group up to a maximum of Rs.
25000/ per member, for debt swap also, within the overall limit of Rs.50000/- per member.
The maximum loanper group is restricted to Rs.500000/-.
Recovery by using group dynamics and peer pressure.
Security : Clean Loans
Repayment:
To be treated as Single Transaction Term loans,Repayable in monthly/quarterly/half yearly
installments,
Repayment holiday 3 months in the beginning.
The maximum repayment period is 48 months. Can be extended up to 60months depending upon
income generation.
11.
GOLD LOANS FOR AGRICULTURE:

For agriculture activity. Eligible for interest subvention if granted for Crop cultivation.
Lending rate per gram of 22 carat gold or 80% of appraised value whichever is less is quantum of loan
(cir 661/2013).
Minimum 500/- and in multiples of 100/- with max. 3 lacs. If granted over 2 lakhs, Re appraisal to be
done in 2 days by another appraiser.
Reappraisal charges: overdue loans party and Regular loans Bank.
Reappraisal: In 12 months Inspection 10% of regular A/c + all overdue loans and in case of 18
months inspection, it is 15% of regular + all overdue loans.
In case reappraisal reveals even a single spurious gold loan, branch should conduct 100% reappraisal
and lodge First Information Report(FIR).
The ceiling rate of appraisal fee is 50 paisa per Rs.100/- with a maximum of Rs.200/- per loan.
Reappraisal charges 30 paise per Rs.100 with a maximum of Rs.100/- per loan.
In branches where gold loan exposure exceeds Rs. 20 crores, branch to have one more appraiser. In
branches where gold loan exposure is less than Rs. 20 crores, discretion to Circle Head to appoint
more than one appraiser based on needs.
Selection of Jewel Appraiser to be made by the committee at Circle Office.
Police verification for selecting Jewel Appraiser: Should be obtained and forwarded to Circle
Office along with jewel appraisers application.
Education Qualification: - Minimum 10th class pass. In exceptional cases, the committee can relax
the same taking in to consideration other factors such as non-availability of other jewel appraisers etc.
In place of AOD, letter of revival (without stamp) will be obtained.
Obtention of land records for agriculture Gold loans purpose:
For aggregate loans upto Rs1,00,000/-:Declaration of the Party
For aggregate loans above Rs.100000/i) For crop production /maintenance purpose:
a) Branches to obtain all land RTC/Khatha Extract/Khatha pass book in respect assessment for crop
production is made.
ii) For purposes other than crop production/maintenance:
In other cases, branches to obtain a copy of any of the land records namely RTC, Khatha Extract/Khatha Pass
Book etc.,
QUANTUM OF LOAN
Minimum Rs.500/- Maximum Rs.300,000/- **
Non-crop purpose gold loan is increased to Rs.5 lacs.
ASSESSMENT OF QUANTUM OF LOAN: (Cir. 185/2014)
Revised guidelines are advised by HO with regard to arriving at quantum of loan:
i) Value of gold jewellery has to be assessed on the basis of average of the closing price of 22 carat
gold for preceding 30 days as quoted by M/s India Bullion and Jewellers Association Ltd.
ii) Lending rate per gram will be informed before 5 th of the month and same will be applicable from 5 th of
the succeeding month.
iii) Branches are required to ensure that Jewel Appraiser arrives at the value of gold jewellery based on
average price of 22 carat gold advised by Head Office multiplied by net weight of 22 carat gold and
same is entered in appraised value column in the application cum letter of pledge by the appraiser.
iv) Jewel Appraiser shall also mention the rate/gram considered for arriving at appraised value.
v) Loan to value (LTV) ratio should not exceed 75% i.e., loan shall be maximum of 75% of the
appraised value, instead of 80% as existing.
vi) In case of Crop Loan Purpose, Scale of Finance or 75% of the gold value, whichever is less to be
taken as loan quantum.
PROCESSING CHARGESAGRICULTURE GOLD LOANS PROCESSING CHARGES.
Sl.
No.
Loan
Present Guidelines
A.
Agriculture Gold Loans

Processing
Charges
and
Inspection Charges
Agriculture Gold Loans- One service charge instead of

Multiple charges.
Loan Amount
>Up to Rs.0.25 lacs NIL
>0.25 lacs to 1 lac Rs.300/- flat
>1 lac to 2 lacs Rs.600/- flat
>2 lacs to 3 lacs Rs.900/- flat
Limit sanctioned alone to be considered for collection of processing charges irrespective of earlier
limits/liabilities of the borrower under agriculture gold loans.Even though the subsequent loan is within
Rs.25000/-, the processing charges of Rs.300/- to be collected as aggregate limit is crossed Rs.25000/.Presently, non-crop purpose gold loan is increased to Rs.5 lacs. Hence, processing charges applicable
for above Rs.2.00 lacs up to Rs.3.00 lacs has to be applied for more than Rs.3.00 lacs also. The same is
as under:
Sl. No.
Loan
Present Guidelines
Agriculture Gold Loans

Non-Crop Purpose Processing Charges and
Inspection Charges
Agriculture Gold Loans Processing Charges including

inspection charges (One service charge instead of
Multiple charges)
Loan Amount
>Up to Rs.0.25 lacs NIL
>0.25 lacs to 1 lac Rs.300/- flat
>1 lac to 2 lacs Rs.600/- flat
>2 lacs to 5 lacs Rs.900/- flat
Gold Loans Handling Charges
To be collected in case of gold loans closed within three
months from date of sanction / disbursement.

Loan Amount
>Up to Rs.1.00 lakh NIL
>1 lakh to 3 lakh Rs.100/REPAYMENT
Within 12 months in installments or lump sum. Can be extended by 6 months provided interest debited till
then is recovered.
SECURITY
Pledge of Gold ornaments/ jewellery. Gold coins/ Bullion not accepted. However, specially minted gold coins
sold by banks are not be treated as bullion or primary gold and hence may grant loans against such coins but
not exceeding 50 grams per customer (HO Cir. 248/2013) and also subject to ensuring the end user funds.
REQUIREMENT OF SB A/C
Applicant to open a SB account and loan proceeds should necessarily be credited to SB account.
INTEREST SUBVENTION
Interest subvention is also being extended for Gold loans upto Rs.3.00 lacs sanctioned for crop production.
Security deposit from jewel appraiser enhanced from 10000 to 25000 for branches with gold loan
exposure of Rs. 10 crores& less & to Rs. 50000 for branches with gold loan exposure of > Rs10 crores.(
Cir. 185/2014).
2 references are to be taken for enrolling jewel appraiser to engage his services.
Reappraisal charges: overdue loans party and Regular loans Bank.
In order to provide a competitive edge to Gold loans for Agriculture purposes other than crop cultivation
purposes the Interest rates stand reduced as under:
Revised Rate of
Loan Amount
Existing rate of Interest Interest
Upto Rs.2 Lakhs
BR + 1.00%
BR + 0.25%
>Rs.2 Lakhs upto Rs.3 lakhs
BR + 4.25% to 5.25%*
BR + 2.25%
GL can be granted to weaker section persons for consumption upto Rs. 2000/- which comes under
Priority Sector.
12. GL OD : Tenability 2 years, Purpose-Agriculture & allied activities
13. Gold Loan To Staff:
Max. Rs. 5000/- , Repayable in 24 monthly instalments. Non Priority Sector advance.
14. Gold loans to employees to meet escalation in the cost of construction of house:
Quantum: 10 months gross salary with maximum Rs. 15,000/ Sanctioning Authority: DGM of the Circle in whose jurisdiction the property is situated.
Repayment: 60 EMIs
15. FARM DEVELOPMENT LOANS:
PURPOSE:
Farm development loans are considered for developmental activities of the farm, where the investment made
will result in creation of immovable assets resulting in increase in the value of land and income of the farmer.
ELIGIBILITY:
i.
He should own an economic land holding with a minimum of 2 acres. However, loans can be
considered even if the benefitting area is less than 2 acres provided the farmer is able to sell the
surplus water or the viability of the project is ensured.
ii.
In case of digging/deepening of wells, the Department of Mines and Geology of the State
Government (Ground Water Survey Directorate) should have surveyed the area and confirmed
the feasibility of digging new wells/deepening of the existing wells in the area. The feasibility
certificate from the Ground Water Directorate is to be obtained, in individual cases as advised by
Circle Office.
REPAYMENT :
The farm development loans are normally repayable in 9 to 15 years by annual/half yearly instalments.
16.
Reimbursement Loan:
Expenses incurred within 6 months are eligible.
Maximum reimbursement loan Rs.100 lakhs.
Sanctioning authority can permit upto Rs.5 lakhs out of total sanctioned limit in case of Agri.
Developmental loan where immovable assets (such as construction etc) are created /developed.
Beyond Rs.5 lakhs by next higher authority except HO sanction.
Obtention of Bills
Upto Rs.2 lakhs Waived subject to Obtention of declaration in the prescribed formatConducting post
sanction visit within 15 days from date of disbursement for ensuring and confirming end use.
17.
TRACTOR LOANS & FARM MACHINERY LOANS

Eligibility: 6 acres irrigated/12 acres dry land.
Tractor usage for 1000-1200 hours.Minimum 500 hours in farmers own land.
In case of Joint Borrowers, borrowers should be from same family only. If borrowers from different family,
permission from Circles DGM is to be obtained.
Sanction of Combine Harvestors proposals by AGM and above of CO.
In case of joint accounts, borrowers are to be from the same family.
Prior clearance from CO is required for every block of 5 farm machinery loans proposed over and above
50 Farm Machinery loans or where recovery is less than 85% under the Farm Machinery portfolio.
Repayment period: 5 to 9 years in half yearly/yearly installments.
Circle DGM can permit the loan if the value of landed property not covers the loan amount fully and if the
deficit is covered by net worth of borrower + guarantor and if the party secures more than 40 marks in
scoring matrix.
If the party secures more than 70 marks in scoring matrix, DGM can permit without mortgage,
provided net worth of borrower and guarantor covers full liability amount.
If the tractor is financed by other bank and the loan is outstanding, we can not finance for trailer.
Trailers shall not be financed where economic life of the tractor is less than 3 years.
Branches should ensure that our lien is noted in the RC Book within 3 months of disbursement of the loan
and RC book copy should be obtained.
Branches to retain 5% of the value of the Tractor/ Power Tiller (wherever registration with RTO authorities
is required payable to the dealers till the RC Book is received duly noting our lien.
Post sanction visit is undertaken within 15-30 days of disbursement to ascertain end use.
RC to be verified for first time soon after registration in the name of borrower with Hire Purchase
endorsement in favour of the Bank and thereafter once in a year preferably during the month of April. In
case of defaulted accounts, the verification of RC has to be done as frequently as possible.
The sanctioning authority may waive the obtention of duplicate key.
Cap of 25 farm machinery loans per branch per year is fixed for branches where the outstanding Farm
Machinery portfolio is less than 50. After reaching the cap of 50 farm machinery loans, the branches to
seek prior clearance from CO.
18.
19.
FINANCING SECOND HAND TRACTORS:

Tractor should not be more than 3 years old.
Loan shall not be more than 60% of value of the tractor as per valuation report or sale
consideration whichever is less.
Repayment: Maximum 5 years in half yearly / yearly installments depending upon income
generation and remaining economic life of the Tractor.
Scoring Matrix for Tractor / FM loans:
Total Marks: 100
Marks Secured: 70 and above : Low Risk and Highly secure.
Marks between 40 and 69 : Medium Risk and Highly secure.
Marks: 39 and below : Rejection of Proposal.
Small Tractor Scheme Upto 30HP:
Purchase of brand new small tractor (up to 30HP), accessories and implements to farmers/Group of
farmers.
Owning 3 acres irrigated or 6 acres dry land.At least 1000 working hours including minimum
300 hours on the farmers own land.
Minimum land holding relaxed to 2 acres irrigated / 4 acres dry agricultural land for farmers
cultivating cash crops or definite availability of subsidy or good scope of custom hiring.
Where recovery under tractor portfolio is less than 60% prior permission from CO.Minimum
50% income from own farm is required.
Quantum:Max. 3.5 lakh.Additional fifty thousand for accessories/implements/trailer may be
considered.
Security- Upto 1 lakh HYP., Above 1 Lakh Single land owner Hyp. + Co obligation. More than
one land owners Hyp. + Mortgage.
Post Sanction- Within 15-30 days.
Repayment- 5-9 years by H.Y/yearly installments.WC: Tenability- 1 year.
20.
SMART MACHINE:
Machinery that is used or intended for use in various farming operations and which can do the right thing, in
the right place, at the right time in the right way.
Purpose:- Term loan for Purchase of brand new Smart Machines/implements, grain threshers, sprayers,
dusters, ploughs, drills etc. and working capital to meetexpenses incurred for repairing & maintenance.
Term loan: Maximum: Five lakhs/-, WC:Max. 0.5 lakhs.
Security; TL- Upto One lakh- Hyp. Above one lakh Hyp. + Mortgage. Or approved securities.
Working Capital- Hypothecation.
Repayment:5 to 9 years by half yearly / yearly installments. Working Capital: Tenability- one year.
Power Tillers with trailers/Power Tillers alone/Trailers alone for already existing tractors:
The applicant should have atleast 3 acres of irrigated lands or 6 acres of dry land.
Circle DGM can relax if the proposed power tillers gainfully employed for a total of 600 hours p.a.
either on own farm and/or custom hire.
Wherever, trailers alone to be financed, it is to be ensured that the borrower owns the tractor.
If loans are considered for purchase of trailer only and the tractor loan is outstanding, existing security
of landed property offered for tractor loan shall be obtained. However, the residual value of security
shall be equal to proposed loan amount.
If tractor is financed by other banks and loan is outstanding, such cases shall not be considered for
financing trailers.
If tractor is financed by other banks and loan is closed, such cases can be considered for financing
trailers subject following:
i) The other banks lien stands cancelled in RC book.
ii) Our lien shall be noted for both the existing tractor and trailer to be purchased.
21.
Combine Harvesters:
Shall be sanctioned by AGM-CAC and above.
Deficit in value of security:
a) Borrower scores 70 and above as per the rating matrix and mortgage is not possible,tractors can be
financed.
by obtaining third party co-obligation/guarantee in lieu of mortgage.
However, networth of co-obligant/guarantor to be at least equal to loan amount.
b) Borrowers who score 40 and above under the rating matrix
Wherever, borrower meets minimum land requirement criteria and yet, value of land is not equal to the
loan amount, co-obligation/guarantee of third party and/or security of tangible assets as above to be
obtained.
Networth of co-obligant/guarantor and/or value of such tangible assets shall be atleast equal to the
deficit in the value of the mortgaged property i.e. value of the mortgaged property and networth of the
co-obligant/guarantor and/or value of tangible assets together shall be equal to the loan amount.
22.
ALLHV:
Heavy Vehicles: Agriculturists with minimum 15 acres of Perennially Irrigated lands.
Mortgage is must for Medium Commercial Vehicles & Heavy Commercial Vehicles and Margin is 25%.
Margin 10% (except for MCVS/HCVS).
Repayment: 5-7 years for MCVs and LCVs -- Monthly / Quarterly installments.
The vehicles financed under the ALLHV Scheme should essentially serve the purpose of transportation of
agricultural inputs and outputs.
Loans given for following purposes only can be covered under ALLHV viz. Purchase of Trucks/Lorries,
Mini trucks, Jeeps, Pick up vans and other transport vehicles / equipments used for transport of
agricultural inputs and farm products but not cars.
23.
Second Hand Vehicle ALLHV

The vehicle should not be more than 5 years old and should be free from encumbrance.
Valuation report of the vehicle should be obtained from an approved valuer.
The quantum of loan should not be more than 75% of the value of the vehicle as per valuation report
or purchase consideration whichever is less.
The loan is to be repaid within 3 years.
24.
DAIRY
Normal economic life of a milchbuffalo is 5-7 lactations and that of a cow is 10 lactation.
Finance upto age of their 3rd lactation.
Finance only for high Yielding Milch Cattle: Not less than 5 litres milkyield per day.
For identification, the animals are to be tattoed / eartagged and same is to be noted in hyp.
agreement.
In case of insurance, Veternary Doctors certification should be obtained.
Availability of water and sufficient area for gazing to be ensured.
Inspection should be conducted within 30 days from the date of disbursement.
Repayment: 5 to 6 years Monthly/Quarterly instalments.
25.
Sheep and Goat Finance

Repayment- 7-9 years including gestation period of 12-18 months.
26.
SERICULTURE LOANS:
Purpose For cultivation of mulberry, rearing of silk worms, construction of rearing house, purchase
of rearing equipments.
27.
Horticulture : NHB Scheme Eligible projects under Development of Commercial Horticulture through production and post harvest
management of NHB are -
28.
Eligibility Applicant should obtain licence from Sericulture department for rearing silk worms in the
area wherever required.
Repayment Repayable in 3 to 7 years in half yearly instalments including a gestation period of 11
months in case of rearing unit.
Loans for cultivation of mulberry should be recovered within a year by quaterly installments or
marketing of cocoons.
Hybrid seed Production

Micro-propagation
Nursery management and Bio Technology, etc.
Post harvest Management
Maximum quantum/ceiling of back ended capital subsidy available under the scheme is 20% and
Rs.25 Lakh (NER30 Lakh) respectively.
If project found eligible and viable then NHB will issue letter of Intent to the applicant which is valid for
one year from its date of issue
Lock in period for adjustment of subsidy is a minimum of 36 months.
Loan cannot be sanctioned for purchase of land under this Scheme but the cost of land can be
reckoned for margin if purchased by the borrower upto10%.
The Scheme permits larger margin from the promoter upto 75% of the project cost for projects
uptoRs.30 Lac and 60% for projects aboveRs.30 Lacs.
NHB shall deal with projects of area expansion for open field crops only when project area is over 4
hectare and in case of protected cultivation area of project is over 1000 Square meter.
NHB field officers can sanction and release subsidy for project costing upto Rs. 20 lacs.
A maximum limit of Rs. 25 lakh per project (North-Eastern/Tribal/Hilly Areas, Maximum limit of subsidy
would be Rs. 30.00 lakh per project).
DEBT SWAPPING SCHEME FOR FARMERS

Loan to Individual farmers to remove debt burden of identified acutely distressed farmers who are
under burden of debt from non institutional sources (eg: money lenders)
Party should give a declaration indicating the source (name and address) amount of debt, date of
creation of debt and other relevant details.
An undertaking that no borrowing would be made from Non Institutional sources during the pendency
of the loan is permitte.
Loan Quantum (147/2008).
Term Loan 150% of the Gross annual income subject to a maximum limit of Rs. 50000/ Classification- Priority Agriculture.
Loan Only if it is sufficient to clear entire dues from non institutionallender.
Margin : Nil, Security : Clean
Co-obligation
Spouse/adult children of the borrower to ensure family pressure in not reverting to non institutional
borrowings again.
Repayment Within 5 years in quarterly / half yearly / yearly instalment.
29.
ACABC AGRI-CLINICS & AGRI-BUSINESS CENTRES (ACABC)

Concept / Definition:
Agri-Clinics are envisaged to provide expert advice and services to farmers on technology,
cropping practices, protection from pests and diseases, market trends, prices of various crops in
the markets and also clinical services for animal health, etc., which would enhance productivity of
crops / animals and increased income to farmers.
Agri-Business Centres: Agri-Business Centres are envisaged to provide farm equipments on hire,
sale of inputs and other services.
Eligibility:
Agriculture graduates / graduates in subjects allied to agriculture like horticulture, animal husbandry,
forestry, dairy, veterinary, poultry farming and pisciculture. Diploma/Post Graduate Diploma holders,
Biological Science Graduates, Degree holders & Agriculture related courses at intermediate level have
also been made eligible,
Project Cost Ceiling
Forindividual projects
Rs.20.00 lakh.
For group projects
Rs.20.00 lakh per trained graduates,Subject to an overall ceiling of
Rs.100.00 lakh. (For a group of five individuals or above).
In case of groups having five persons, of which one is non-agriculture
graduate, the ceiling of such group projects would also be Rs.100.00 lakh.
Linkage with credit
Assistance would be purely credit linked and subject to sanction of the project by Commercial/Cooperative/Regional Rural Banks
Term Loan :
The term loan would be composite in nature
Include fixed capital cost, working capital for one operating cycle, and subsidy amount eligible, (as
capital subsidy is back-ended), but exclusive of margin money as stipulated.
At least 10% value of the Total Financial Outlay (TFO) of the project should be in capital form.
Repayment period: 5 to 10 years.
The repayment period: A maximum grace period of 2 years
Margin
For Loans upto Rs. 5 lakh : NO MARGIN
For Loans beyond Rs. 5 lakh : 15% to 25% of the Project Cost
However, concessions would be made in respect of SCs/STs, women and beneficiaries of Northeastern states, Hill areas.
In such cases, a maximum of 50% of the margin money prescribed by the banks could be given by
NABARD to meet the shortfall in borrowers contribution, if the bank is satisfied that the borrower is
unable to meet the margin money requirements. Such assistance to banks by NABARD will be without
any interest.
The branches to levy a service charge of 2% per annum from the borrowers.
Security
Loans up to Rs.50,000/
Hypothecation of the assets created out of loan
Loans above Rs.50,000/-and
Hypothecation of the assets created out of loan.
upto Rs.5.00 lakh.
Third party Co-obligation/ Guarantee.
Loans above Rs.5.00 lakh
Hypothecation + Mortgage of landed property equivalent to
the loanamount.
Co-obligation/Guarantor wherever essentialmay bewaived
by sanctioning authority.
Time limit for completion of the project
Maximum 6 months from disbursement of first installment of loan, may be extended by a further
period of 6 months, if justified.
If not, no subsidy and advance subsidy placed with the branch/es, if any, will have tobe refunded
forthwith to NABARD.
Subsidy
Revised from Capital and Interest Subsidy to Composite Subsidy which will be back ended in
nature.
Credit linked capital subsidy @ 36% of the Total Financial Outlay of the project funded through
bank loan would be eligible.
This subsidy would be 44 % in respect of candidates belonging to SC, ST, Women and all
categories of candidates from North-Eastern and Hill States.
In case subsidy of whatever amount is availed of, under any other scheme of Central or State
Government, Subsidy will not be admissible under this scheme.
Subsidy will be extendedmaximum twice to a candidate under the scheme.
The capital subsidy will be back-ended with minimum 3-years lock-in period.
Procedure for Release of Subsidy
NABARD, on receipt of Project Profile-cum-Claim Form from the Bank through their CO will sanction
and release 50% advance subsidy.
Final subsidy shall be released from Nabard on receivingInspection Report and Completion
Certificate along with Claim Form for Final Subsidy.
After crediting the final installment of subsidy in the reserve fund of the borrower, a utilization
certificate in the prescribed formatshall be submitted by the branches to NABARD through Circle
Office.
30.
Financing farmers for purchase of land for agricultural purposes: Small & Marginal Farmers, Tenant farmers &Share Croppers eligible.
Entrepreneurs* with agricultural background are also eligible (Provided State laws permit purchase of
agriculture lands by such persons) subject to the celing.
Applicant should be from an agricultural family or/and an agricultural graduate, seeking to establish an
agriculture enterprise relating to agriculture (including allied activity).
Total Land Holdings after Purchase of Land, should not exceed 2.5 acres irrigated or 5 acres of
non-irrigated land.
Margin : Minimum 20% on project cost.May be reduced to 10% by the Sanctioning Authority on
merits.
Quantum : Basing on value of land, stamp duty, registration etc. A maximum of Rs.10 lakhs.
Repayment: 7-10 years with repayment holiday of 24 months.
DSCR minimum 1.50
31.
MatsyaSuraksha
A Scheme to Finance Fishermen.
Single transaction short term loan to meet recurring expenses of fishermen towards cost of fuel, oil,
consumables and stores, repairs and maintenance of own boats, selling and other working capital
related expenses.
Minimum: Rs. 10,000/- maximum Rs. 1,00,000/ Margin- nil.
Security- Hypothecation.
Fishermenowning traditional catamarans, masula boats, Plank-built boats, dugout canoes, machwas,
or dhonis are Eligible.
Fishing shall be his sole source of income.

Equal installments. (Repayment holiday from June to September every year).
32.
MatasyaParirakshan: A Scheme to Finance Single transaction short term loan to meet recurring business expenses of
fisherwomen engaged in processing (preparation of dry fish etc) / retailing of fish in markets, towards
cost of procurement of fish for selling/ processing and related expenses.
Minimum: Rs 5,000/- Maximum Rs 50,000/-.
Margin- Nil.
Security- Hypothecation
Repayment: 35 months without any repayment Holiday.
33.
MatsyaSamruddhi:-A Scheme to Finance SHGs/JLGs.

Fresh Fish vending, Fish Drying, fish salting, fish net making, fish feed production, fish manure
production, boat/net purchase , fish carrying vehicle purchase, inland fisheries, women involved in
cleaning the fish at fish markets either individually or in groups.
Quantum depends on rate of savings. The total savings of the group for Five years at current
rate shall be calculated.
Maximum loan Rs. 50,000/- per member and Ten lakh per group.
Active existence of group for at least six months.Must have undertaken savings and credit
operation through internal trading.
Group may be financed for consumption purpose also.
Revolving Cash credit tenable for 5 years. Interest to be paid monthly.
34. Scheme for Financing Farmers Producer Organizations

Ministry of Agriculture, Govt. of India has identified Farmer Producer Organizations registered under the
special provisions of the Companies Act, 1956 as the most appropriate institutional form around which to
mobilize
farmers
and
build
their
capacity to collectively leverage their production and marketing strength.
Further, to minimize the credit risk & granting collateral free loans to Farmer Producer
Companies, a new Credit Guarantee Fund Scheme (CGFS) has been introduced.
The scheme is applicable for loans sanctioned for any credit facility up to the extent of Rs.
100.00 lakhs and maximum guarantee cover is available up to 85% of the eligible sanctioned
credit facility or Rs. 85 Lakh, whichever is lower, without any collateral or third party
guarantee.
TARGET GROUP: Small and Marginal Farmers engaged in cultivation and other allied activities.
ELIGIBILITY:
Economically viable, democratic and self-governing Farmer Producers Organizations.
Members and stake holder of the FPOs are to be only Farmers and the company should be owned by
them.
FPOs to be a registered company.
Board of the company should be from Farmer members. In exceptional cases they may engage
professional Directors/Nomine Directors for smooth functioning till the farmer members are acquainted
and self-sufficient to run the company.
The limit can be extended either a single transaction limit or as a revolving limit.
Exposure Limit
Risk Rating Module
Nature of activity
Up to Rs.2.00 lakh
Portfolio Model(at HO level)
Any
Above Rs 2.00 lakh to less

than Rs 2.00 Crore
Manual Model/Small Value
Any
Above Rs 2.00 Crore
RAM Model
Model
Small Trading Module/Large
Trading
Trading Module
Projected turnover
SME Module- Mfg.
Processing/Manufacturing
SME Module- Services
Rendering Services
Large Corporate Module
Any
above Rs.25 crores

35. Agribusiness Development through Venture Capital Assistance and Project Development Facility by
SFAC).
Poultry and Dairy Projects will also be covered.
Our Bank has entered into MoU with SFAC. Assistance will be 26 % of the promoters equity, (40 % for
Projects located in NE region, Hilly States of Uttarakhand, HP, and J&K and in all cases in any part of
the country where the project is promoted by registered Farmer producers organization) or Rs.50.00
Lacs whichever is less.
In order to facilitate agribusiness development in the country SFAC venture capital scheme will :
a) Assist Agripreneurs to make investments in setting up agribusiness projects through equity
participation (Venture Capital Assistance) and
b) Provide financial support for preparation of bankable Detailed Project Reports (DPR) through a
Project Development Facility (PDF).
The amount for preparing bankable DPR through empanelled consultant of SFAC under PDF Scheme would
be in the range of Rs25,000 to Rs1.00 lakh.
Qualifying Projects-Agriculture or allied sector namely horticulture, floriculture, medicinal and aromatic
plants, minor forest produce, sericulture, organic farming, vermi compost, apiculture, plantation crops,
fisheries, Poultry and dairy projects. The Venture Capital Assistance provided shall be repaid to SFAC by
the borrowerafter full repayment of Bank's Loan.
36.
Solar pumpset Loan for irrigation Loan will be granted for installation of solar water pumping system.
Economic land holding with a minimum of 10 acres.

However, loans to be considered even if the benefiting area is less than 10 acres provided the farmer is able
to sell surplus water.
Quantum- 75% of cost of equipments. Projected DSCR is not less than 1.60.
Repayment- 5-7 years.
Due to Technical limitation of solar pump set, it can work at low Heads only (shallow water sources) and low
capacity (2.50 HP pump sets) & hence capacity to irrigate small area only (1-2 Hectares) due to small
discharge.
37.
Cold Storage on lending to Potato Growers-
To provide financial assistance (OD limit) to cold storage units for on-lending to potato farmers.
To meet operative expenses of cold storage units.
Scheme is applicable to Agra, Chandigarh, Kolkata, Karnal, Patna and Lucknow Circles where Potato is
grown extensively.
OD limit. Drawing power is to be arrived at based on monthly statement of advance made to farmers
submitted by the borrower.
Limit shall be valid for 12 months.
Sublimit for on lending to farmers. The overall limit for on lending to farmers shall be fixed based on
the installed capacity of the cold storage unit and average market price of potato for last one year
communicated by Circle office.Maximum cap is fixed for Rs.5.00 crores based on storage capacity.
OD-I: For OD limit for on-lending to farmers 75% of the total advances made to farmers as per monthly
statement submitted by the Cold Storage owner. Liability to be brought down to 50% by 30th November
every year.
OD-II- For operational expenses 60% of the operational expenses or 20% of the limit arrived for on
lending to farmers, whichever is lower.Drawing Power need not be arrived for this sub limit. However this
should not exceed 20 % of the entire limit assessed.
Security:Prime: Hypothecation of receivables,Collateral- Total security comfort by way of mortgage of
landed properties shall not be less than 125% for limits up to Rs 100 lac and 150% for above Rs 100
lacs.
The limit shall be valid for 12 months.
Liability to be brought down to 50% by 30th November every year.
38. Agricultural marketing infrastructure(AMI):
Now GrameenBhandaranYojna and AMIGS are subsumed into one new scheme i.e.,
Agricultural Marketing Infrastructure (AMI).
Effective for the projects for which term loan is sanctioned on or after 01.04.2014.
Minimum promoter margin - 20% of the project cost. Back- ended capital subsidy- 25 % or
33.33 % of the capital cost.
Projects sanctioned under the previous guidelines,(GBY & AMIGS till 31.03.2014) claims to be sent to
NABARD on or before 30.09.2014.
Channelizing Agencies for Release of Subsidy: NABARD, National Co-operative Development
Corporation (NCDC), Department of Agriculture & Co-operation (DAC), Small Farmers Agribusiness
Consortium (SFAC).
Subsidy Pattern- Back-ended capital subsidy.
Term Loan:Minimum Term loan (including subsidy) to be sanctioned should be 50% of the
project cost.
39.
40.
In case of own funded State agency projects should be 75% / 66.67% of the project cost as the case
may be depending on type of Infrastructure project and cash flow pattern.
FINANCING TO COMMISSION AGENTS AGAINST BOOK DEBTS Maximum quantum :Rs. 10 lacs.
Parties with 3 years OCC facility & good record are eligible.
Book Debts: Not to exceed 6 months.
Margin: 30-40%
Security Upto Rs. 5 lacs -Hyp.of books debts and collateral security of land & building. Above 5 lacs
hyp.of book debts, collateral security of land and building whose value shall atleast 150 % of limit.
Granted to commission agents in rural and semi urban areas.
Not more than 10-15% of book debts assigned should be concentrated on one customer.
ESTATE PURCHASE LOANS (NON PRIORITY) The purchaser to have yielding estates, Non-Estate owners may also be financed provided that it is
assessed that the borrowers can, after purchase, will be able to develop the Estate on the desired
lines(subject to State laws permitting the same).
Margin: 50% (can be relaxed to 25%).
Repayment: Up to 15 years.
Branches do not have power to sanction loan. Sanction by CO Head &
above authorities.
Value of security should not be less than 200% of the loan.
Limit-Lowest of market value/Guidance Value/Purchase consideration with margin.
41. National fisheries development board (NFDB) subsidy schemes for fisheries
development (CIR 249/2010):
Subsidy: 20% to 50%, Back Ended subsidy by NFDB.
Fish Waiver of insurance for fish crops and bund structures in respect of working capital limits
Corpus Fund.
The minimum cap on corpus fund to be held as collateral is 6% of the limit permitted. Amount is collected
through RD till reaching the minimum cap and keep as collateral, but within two years of opening
RD.Deposit amount over and above the minimum cap may be waived by respective sanctioning authority.
For release of deposit amount within the minimum cap, it should be permitted by next higher authority for
loans up to below Circle Head Powers and concerned sanctioning authority for Circle Head & at HO.
Satisfactory past dealings of the borrower for more than 1 year.
Mariculture :Specialized branch of aquaculture involving the cultivation of marine organisms for food and
other products in the open ocean, an enclosed section of the ocean, or in tanks, ponds or raceways which
are filled with seawater.
42.
TERM LOAN FOR AGRICULTURAL PURPOSES AGAINST GOLD JEWELRY Quantum is linked to value of pledged gold jewellery
With a minimum of 40% on appraised value(3 year repayment option)/50% margin(>3 yearsupto 5 year repayment option), or
lending rate advised by HO from time to time whichever is lower.
Proof of pursuing the activity/investment is to be given for loans above Rs. 1 lakh, including
under allied activity.
The purpose of the loan can be for any one/combination of investment/development purposes relating
to agriculture and allied activities with a maximum of Rs.3 lakhs (aggregate exposure under Gold
loans).
ROI: As per Agril Term Loan.
Repayment: Not exceeding 5 years, in suitable installments coinciding generation of income from the
activity
43. Produce Loan(Cir 263/2013) Maximum 50 lacs per party. Repayment within 12 months from the date of
grant. Loan proceeds to be adjusted to KCC/instalment of TL. 50 lacs is the restriction for Produce Loan to
Corporates also (cir 208/2013). The subvention benefit is extended to eligible post harvest loans against
warehouse receipt to KCC holder Small & Marginal Farmer borrowers, for a period of six months and
incentive subvention is extended to such of those loans closed promptly but within 6 months from availing
the loan. The following variants of Produce loans to farmers against their produce/relative warehouse
receipts are advised:
Produce stored in their own houses/godowns/Leased-godowns (Max- 10 lakh)
Warehouse receipts of Central Warehousing Corporation(CWC)/State Warehousing Corporation(SWC)
Warehouse receipts issued by Private sector Warehousing Units
Warehouse receipt financing under tie-up arrangements with Collateral Management Companies like
NCML, Star Agri, Origo, M/s National Bulk Handling Corporation Ltd(NBHC).
Financing against Negotiable Warehouse receipts of accredited Warehouses/Cold storages(25
lakhs(onlent amount)) Financing the Private Cold Storage units / Private Warehouses by way of WC limit
against the Receivables (arising from amount advanced to farmers against stocks of Agricultural produce
stored by the farmers) (Rs.25 lakhs(onlent amount) Special beneficiary code under BAM83 (Cir
129/2015).
44. Scheme For Providing Finance To Tenant Farmers & Oral Lessees through Joint Liability Groups
(JLG)/ Joint Farming Group of Bhoomi Heen Kisan (Cir. 210/2007, 577/2014, 144/2015):
Objective To augment credit flow to landless farmers cultivating land as tenant farmers, oral lesses or
share croppers and small/marginal farmers as well as other poor individuals taking up farm activities, offfarm activities and non-farm activities.
Group Size upto 20 members. Preferable : 4 to 10 members
Loan quantum No ceiling on quantum of loan. However Scale of finance to be taken into account for
crop loans and development/ investment loans branches may refer NABARD unit cost or other designated
agencies.
Margin Upto `1 lakh Nil, Above `1 lakh As per respective scheme/product.
Rate of interest : As applicable to SHG. If the account is eligible for interest subsidy then ROI as per
subvention guidelines.
Repayment : 12 months for short duration crops and 18 months for long duration crop. For non crop
purposes based on the respective activity.
Post sanction inspection : Atleast 25% of members in a group
Documentation: Just like SHG, ie NF 950, 951, 952
Clean Advance. Delegation of sanctioning powers on par with SHG.
RKBY insurance coverage to be done mandatorily.
Classified under Direct Agriculture
Farmers Club:VVV club rechristened as Farmers Club.
Size : Minimum 10 members. No restriction on upper limit.
Membership: All villagers except defaulters.
Leader/Chief coordinator, Democratic election, valid for 2 years.
NABARD will provide Rs. 10,000/- per club for 3 years. Subsequently, our Bank will provide Rs. 2000/per year for 2 years.
DM/AGM CO authorized to sanction the expenditure
After 5 years, farmers club to become self sustain.
GramaVikasaYojana (GVY)
VY aims at focusing special attention on one village once in two years consisting of about 100
families.
To build up local leadership and ensure local participation in developmental process through a
peoples organization
HariKalyanYojana:
Developing about 100 Harijan colonies in our lead Districts and now extended to our all rural and semi
urban branches.
The selection of colony will be done by branch manager in consultation with the CO. The colony shall
have around 50 SC/ST families
Maximum amount of 15,000/- (higher amount can also be permitted upto 25000) is to be provided to
each centre for taking up education/health/sanitation/ establishing HariKalyana Kendra / Development
Centre / tree planting / sinking bore well / any other development activities.
Centre For Entrepreneurship Development For Women:
Identify, select, guide and assist the potential women entrepreneurs to start/establish/run the
enterprise successfully.
To create entrepreneurial climate, conduct of awareness generation programme, workshop etc.
At present, CED for Women is functioning in 7 centres.(Circles)
Rural Clinic Service
To provide medical aid to villages and to encourage unemployed doctors to setup clinics at rural
places so as to promote self-employment.
Full Time Clinic: Doctor should practice in a service area village, not less than 6 hours per day for
a period of one year.
The Doctor will be given incentive of 3000/- P.M. for 12 months and a grant of Rs. 1500/- p.m. for
12 months to dispense medicines free of cost to poor patients.
Part Time Clinic : The doctor should practice at least 2 hours per day for a minimum period of
one year.
The village selected should be beyond 5 Kms but within 10 Kms from the centre where the
doctor is presently practicing.
The Doctor will be given incentive of 1250/- p.m. for 12 months and a grant ofRs. 750/- p.m. for 12
months to dispense medicines free of cost to poor patients.
Rural Service Volunteer Scheme
RSV should work in the adopted villages for a minimum period of two years.
RSV must stay in one of the adopted village and work for the over all development of the villages.
RSVs will be given a sum of 500/- p.m. for setting up the office in one of the adopted villages for
maintenance of the office and 2000/- p.a. for conducting extension activities.
Interest Rate Related Guidelines(Cir 407/2013)
Uniform rate of interest for both short term and term loans with term premium for term loans(Short Term
Loans, Direct Agriculture Term Loans and Indirect Agriculture Term Loans).
No scoring norms & graded rate up to exposure of Rs.1.00 crore.
Revised / rationalized the rate of interest slabs from existing 6 slabs for short term loans and 7 slabs for
terms loans to 4 slabs for both types of loans.
Single slab up to Rs.3.00 lacs as against up to Rs.2.00 lacs to align with interest subvention scheme for
crop production loans.
Scoring norms for SHG Loans will be based on the same parameters used to credit score the groups while
taking credit decision.
In case of Warehouse receipt financing to farmers against Negotiable Warehouse receipt,

concession of 0.25% to be extended.
To determine rate of interest, the actual loan component should be taken into account excluding subsidy
amount receivable, both in case of front ended and back ended subsidy.
Term Prem: 0.25% (>3 - 5 yrs), 0.50%(>5 -10 yrs) & 0.75%(>10 yrs)
In respect of Agriculture loans where financials are not available/scoring norms not applied,
highest rate of Interest can be applied.
OBJECTIVES
1.
Security to be stipulated For loans under revised KCCS 5th year limit upto 150000/-
2.
A. Hypothecation B. Mortgage C. Both D. Vary case to case

NABARD is providing an incentive of .Rs. per JLG TO BANK FOR FORMING,
NURTURING AND financing JLG on annual basis over a period of three years.
A. 1000, B. 2000 C. 5000 D. 10000
3.
What is the total per member total premium under Janshree Bima YojnaA. 50 B. 100 C. 200 D. 500
4.
Gold loan for agriculture purpose, Land record is required for agreegate limit above Rs.
A. 50000/- B. 100000/- C. 300000/- D. 500000/-
5.
Maximum quantum under Smart Machines including Working Capital AssistanceA. 5 lakh B. 5.5 lakh C. 7 Lakh D. 7.5 Lakh
6.
Maximum loan which can be granted under Debt swapping schemeA. 25000/- B. 50000/- C. 100000/- C. 200000/-
7.
Minimum loan which can be granted to Fisherwomen under Matasya ParirakshanA. 500/- B. 1000/- C. 5000/- D. 10000/-
8.
Annual assistance extended by NABARD to Farmers Club for first three yearsA. 3000/- B. 5000/- C. 10000/- D. 25000/-
9.
Maximum debt swapping loan component under Canara Kisan OD:A. 1 Lakh B. 0.5 Lakh C. 7.5 Lakh, D. 12.5 Lakh
10.
The KCC limit for 2nd& subsequent years to be sanctioned on which of the following basis
a)1st year limit +10 % of limit for every successive year up to 3rd year
b) 1st year limit +10 % of limit for every successive year up to 5 th year
c) 1st year limit +20 % of limit for every successive year up to 3rd year
d) 1st year limit +20 % of limit for every successive year up to 5th year
11.
For tractor loan,farmers should have minimum of ______ acres of perennially irrigated land or
______ acres of dry land.
a) 8 or 16
12.
b) 6 or 12
b) 85
d) 95
c) 10
d) 25
b) 3
c) 5
d) 4
c) 40
d) 50
For second hand tractor ,Bank loan is to be repaid within _____ years.
b) 4
c) 5
d) 7
Under Cash Credit Scheme for SHGs, Branches to sanction cash credit notional limit for tenure
of _____ years subject to annual review.
a)1
19.
b) 5
b) 60
a) 3
18.
c) 90
Margin for second hand tractor should not be less than _____% of value of tractor or
saleconsideration whichever is less.
a)25
17.
d) 6 or 12
For second hand tractor finance, tractor should not be more than ______ years old.
a) 2
16.
c) 5 or 10
Branches with outstanding farm machinery portfolio of more than 50 loans or recovery is <85%
under relative portfolio, branches have to obtain prior clearance from CO for every block of
_____ farm machinery loans proposed.
a) 3
15.
b) 3 or 6
Branches to disburse only ____% of value of tractor to dealers and balance amount to be
disbursed only on receipt of RC book with our Banks lien duly noted.
a) 75
14.
d) 8 or 16
For power tiller loan , farmer should have minimum _______ acres of perennially irrigated or
______ acres of dry land.
a) 4 or 8
13.
c) 4 or 8
b) 2
c) 3
d) 5
The maximum loan that can be permitted to Micro Credit groups is Rs._____
a) 50,000
b) 1,00,000
c) 1,50,000
d) 5,00,000
20.
Minimum and Maximum no. of members in Micro Credit Group is ______

a)3&5
21.
b)5&10
c)5&20
d)3&10
Cultivation of Silk WormA. Apiculture B. Pisciculture C. Sericulture D. Silviculture
22.
Where tie-up arrangements (like in case of sugar factory, Tobacco Board etc.,) are available
for recovery, loans upto Rs .. can be extended without insisting on mortgage under
KCCS/ Investment /Development loans either individually or put together.
23.
A. 2 lakh B. 3 lakh C. 4 Lakh D. 5 lakh

WC requirement for allied activities (B) and for farm machinery maintenance (C) component of
KCC should not exceed . % of Scale of finance (A).
24.
A. 15 B. 20 C. 25 D. 30
Sub limit for consumption need (D) under KCC is 10% of A+B subject to maximum of
Rs.
25.
A. 10000 B. 20000 C. 15000 D. 50000

Sub limit for non farm sector (E) for KCC limit is 20% of the projected turnover not exceeding
.. % of (A) + (B)
26.
A. 15 B. 20 C. 25 D. 30
KCC Limit will be .. year requirement assessed with . % annual increase
projected over current year requirement (Subjected to annual review)-
27.
A. 2ND , 5 B. 3RD, 10 C. 5TH, 1O D. 10TH , 20

Sub-limit II under revised KCC shall be limited to 3 times the annual net income of the
farmer/ maximum of Rs..LAKH
28.
29.
30.
31.
32.
A. 1 B. 3
C. 5
D. 10
The operative short term KCC limit is valid for .. Years subject to annual review.
A. 1 B. 3
C. 5
D. 10
In case of short duration crops each withdrawal under the short term sub limit
liquidated in .. Months.
is to be
A. 10 B. 12 C. 15 D. 20
Margin for loan upto Rs. Five lakhs granted under Agriclinic and agribuisness centerA. 10-15% B. Nil C. 15-25% D. 50%
A KCC account is considered nonperforming when a drawal and interest demanded, remains
unpaid for a period of . crop seasons in case of short duration crops.
A. 1 B. 2 C. 3. D. 4
In case of long duration crops, account becomes nonperforming when a drawal and interest
demanded, remains unpaid for a period of .. Crop season.
A. 1 B. 2 C. 3 D. None
33.
34.
35.
36.
37.
38.
Branch Power KCCS is to be sanctioned within . days from the receipt of

application completed in all respectsA. 10 B. 15 C. 25 D. 30
Branch Manager may consider a higher quantum of loan for crop maintenance to the extent of
. over and above the scale of finance.
A. 10-15% B. 15-25% C. 50% D. No power to finance above Scale of finance
KCC limit should not exceed .. % of value of the produce A. 25 B. 50 C. 75 D. 100
Components under KCCS are to be segregated and interest subvention and incentive will be
available only for .. Portion of KCCS.
A. Crop cultivation B. Allied activities C. Non Farm sector D. Only A & B
PAIS is applicable for KCC holders upto the age of .. Years.
A. 50 B. 60 C. 70 D. 80
Risk Coverage under PAIS Rs 50000 for death/permanent disability Rs. /- for partial
disability-
39.
A. 25000 B. 30000 C. 35000 D. 50000

Under Canara KOD sublimit for repayment of genuine Pvt. Debt
40.
A. 1 LAKH B. 2 LAKH C. 3 LAKH D. 5 LAKH

Minimum limit under Canara Kisan OD . LAKH
A. 1 LAKH
41.
B. 2 LAKH C. 3 LAKH D. 5 LAKH
Maximum limit under CKOD . LAKH

A. 7.5 B. 10 C. 12.50 D. 15
42.
Circle can permit higher limit up to Rs. 12.50 lakhs under CKOD at such of the designated
branches where the recovery percentage under the Scheme is above .%
43.
A. 80 B. 90 C. 75 D. 80
CKOD can be granted upto what times of Gross annual Income ...
44.
A. 5 B. 2 C. 3 D. 4
CKOD can be granted to farmers with . Year of satisfactory record.
45.
A. 1 B. 2 C. 3 D. 4
Maximum finance under JLG is Rs. ten lakh per group subject to per
member.
46.
A. 50000 B. 100000 C. 25000 D. 150000

Name the Death Cum Disability insurance scheme to all the Credit Linked Women Self help
Group members by the L I C Of India .
Jan Shree Bima Yojna
47.
The minimum and maximum number of members in a Micro credit group is restricted to 3-5 in
urban areas and .in rural and Semi urban areas.
48.
A. 5-10 B. 4-6 C. 10-15 D. 15-20

Under Micro Credit group within 50000/- per member what may be the maximum extent for
Debt swapping..
49.
A. 10000 B. 15000 C. 25000 D. 30000

Scheme for tenant farmers, oral lessees, share croppers and farmers who have lands, but do
not have land records.
50.
A. Kisan Seva B. Krishi Mitra C. Sampark Abhiyan D. Kisan Tatkal

Maximum limit of Kisan Mitra Credit Card-..
51.
A. 25000 B. 30000 c. 50000 D. 100000

Of the total limit granted under KMCC minimum . Percent should go to Crop
cultivation.
52.
A. 20 B. 30 C. 40 D. 50
Maximum
quantum
of
produce
Corporate.Lakh-
loan
53.
A. 20 B. 30 C. 40 D. 50
Minimum Limit under Kisan Tatkal
54.
A. 1000 B. 5000 C. 10000 D. 25000

Maximum limit under Kisan Tatkal
55.
per
party,
Individual
or
A. 25000 B. 50000 C. 100000 D. 500000

Kisan Tatkal can be given to existing KCC holders to the extent of .% of KCC or 25% of
estimated annual income.
56.
A. 25 B. 50 C. 75 D. 100
Minimum Perennially irrigated land requirement for financing Tractor.acre.
57.
A. 2 B. 4 C. 6 D. 12
Name the single shot term loan limit to farmers for all term loan requirement for 2-3 years
Kisan All purpose Term Loan
58.
What is the maximum quantum of WC limit permissible under Smart Machines -----..
59.
A. 25000 B. 50000 C. 100000 D. 500000

Which of the following is a scheme for Fishermen.
60.
A. Matasya Suraksha B. Matasya Parirakshan C. Matasya Samruddhi D. Canara

Machhuara
Maximum quantum of loan under Matasya Parirakshan.
A. 5000 B. 10000 C. 50000 D. 100000

Advances

Transféré par

Informations du document

Copyright

Formats disponibles

Partager ce document

Partager ou intégrer le document

Options de partage

Avez-vous trouvé ce document utile ?

Ce contenu est-il inapproprié ?

Droits d'auteur :

Formats disponibles

Advances

Transféré par

Droits d'auteur :

Formats disponibles

Canara Bank

Staff Training college , Bangalore

respectively and 12.5% in respect of NBFCs pre-dominantly engaged in lending against

Maximum Lending Rates (HO Cir 559/2015)

Above one year up to 3 years

Loans upto Rs.25000

Kisan Card Br powers

Other Priority Sector adv

TAKE OVER OF ACCOUNTS GUIDELINES (HO CIRCULAR 496/2015)

exposure by respective Circle Head and above authorities.

ADDITIONAL POLICY GUIDELINES FOR TAKEOVER OF ACCOUNT (Cir 33/2012 &

2 notches, failure of restructuring/rehabilitation efforts more than twice in a period of 3 years,

Exposure upto Rs. 2 lakhs

ROI as advised by the bank

and the relevant financial statements.

Above Rs.10 Crore

upto 0.75% of the project cost with minimum of

INSURANCE OF SECURITIES (cir 302/2010)

spontaneously combustible eg. Copra Natural calamities like flood, cyclone,

CIBIL & CIR

CREDIT INFORMATION REPORTS (CIRs) (Ref.Cir. - 560/2015)

Maintenance of a key register for recording day-to-day inward / outward entries

Unavailed Limits- Incorporation of clause of Unconditionally cancellable credit (UCC) LDGM

In case of consortium advances, what is the minimum prescribed share of member

% of the Gross Credit

year/s and upto

26. What is the DSCR prescribed for Transport Operators

a ccounts by GM(HO) and above authorities

All Loans and advances irrespective of loan amount

(c) 1.5 (1.25

(c) 1.50/1.25 exception by SA, (239/2015)

74. Project appraisal by PAC, DGM Headed Circles

Group : Commanality management and effective control on management shall be the

sanction by GM /CGM(HO-CAC) only. In case of Existing borrowers, of CGM/GM-CO-CAC

Other conditions for Adhoc over limit:

with the details of the adhoc over limit permitted.

Concession in ROI for VSL/OD against our Deposits :

SANCTIONING POWERS RETAIL LOANS :

: Rs. 200 lacs

MODERATE RISK. (212/2011)

POLICY GUIDELINES ON RATIFICATION OF ACTION(Cir 03/2013)

Delegation of powers for CRE (379/2015)

1. A branch is having R s . 4.5 cr total business , branch categorization shall be:

Scale III Officers

Very Large Branch

11. If a securities stated specifically as an additional security with a first charge/lien in

; Car Loans exceeding Rs.

Terms Used Means

Modified vide HO Circular 422/2015 Only 8 terms now.

Pensioners / salary accounts: Where the pension/ salary is regularly credited at

Branch-in-charge of small/medium/large branch can permit loans /advances

33. Need based fresh finance up to Rs.

% of the sanctioned limit or

Rs 3 lakhs (Small - Rs 1 lac lacs // Medium - Rs 2.00 lacs // CM - Rs 2 5 lacs /

Explanation: Any relaxation on the period mentioned above may be permitted by

permitted may not be

authority for an account falling under Circle Head Powers is

loans against shares at

are authorized, to permit disbursement in housing loan by

Explanation: Applications shall not be rejected at branch level and such

with or without loan under our Housing Loan scheme

CANARA PENSION(Retired Employees of the Bank and

11.15% (BR + 1.50%)

CANARA BUDGET (With Salary tie- up