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Vijaya Bank offers Personal Loans to borrowers seeking finance to fund their personal
expenses. The loan is called V Cash and is discussed in details below:

V Cash

A personal loan offered by the Vijaya Bank to individuals.

 Features

This loan has the following attractive features:

o The loan is offered to individuals so that they can meet their short-term financial
needs and expenses like marriage, working capital requirement for business
purposes, taking a vacation, etc.
o The loan can be availed by salaried individuals earning a regular salary or
pensioners who earn a steady source of pension in lieu of previous services
rendered
 o Individuals aged 21 years and above can avail of the loan and the maximum age till
which loan is granted is 55 years provided that at least 2 years of service is still left.
For pensioners, the exit age for the loan is 72 years
o Eligibility & Loan Amount
o The maximum quantum of loan that is granted under this scheme of personal loan is
dependent on the individual’s salary if he is a salaried employee. The amount will be
equivalent to the last 18 months’ average net take home salary up to a maximum of
Rs.6 lakhs. For pensioners, the maximum quantum depends on their monthly
pension and is equivalent to last 18 months’ gross pension subject to a maximum of
Rs.2 lakhs

o The loan should be repaid within a maximum tenure of 5 years or 60 months

o In case of pensioners, the spouse would act as a guarantor unless he or she is dead
or separated. In that case, a third party guarantee would be required provided the
net worth of the third party is sufficient as perceived by the bank. In case of other
salaried employees, spouse’s guarantee is not required. Only the third party
guarantee with the third party having a sufficient net worth would be enough to avail
the loan
o Certain pre-sanction documents would be required before the loan is granted. These
include the latest salary certificate of the applicants. In this case, the salary of the
borrower should be credited in a salary account maintained with the bank for over
the past 6 months at the least

Rate of Interest

The Vijaya Bank provides personal loan on MCLR basis w.e.f. 07.09.2017 The MCLR for 1
year is 8.50%. Pensioners are given a concession in the rate of interest charged on the
loan. For them the rate of interest on the availed personal loan is MCLR + 4.00% = 12.50%
p.a. For other salaried individuals, the rate of interest is higher at MCLR + 5.00% = 13.50%
p.a.

LOANS AGAINST SECURITIES

o Loans against Government of India Relief Bonds:The Vijaya bank extends

advances against the security of the Government Relief bonds which are issued
indifferent series having 15% margin on the face value. The maximum amount of
lending is limited to RS.10 lakhs.
Loans against Term Deposits:
o Loans against the bank deposits are provided in form of loans and overdraft.
o These loans are generally given to the depositors who themselves hold the deposits
in the banks.
o The bank provides advances to the third party if he has been sanctioned the proper
authority by the deposit holder complying with the proper norms of the bank.
o The deposits made in the name of the minors can only be utilized for the benefits of
the minor only. The undertaking letter mentioning that the amount of advances taken
 against the minors deposit is being utilized for their benefit should be obtained from
the parents or guardians.
o The maximum duration for which the advances are given is from the date of
advances made till the date of maturity.
o The bank does not give against the deposits of minor to the guardians who are
appointed by the court. It is only available if the court allows for the same.
o No advances are given against the deposits of the other banks.
o The interest rate charged by the bank totally depends upon the category in which the
borrower falls and purpose for which the advance is taken.
o Advances against Nre and Fcnrb Deposits:
The loans against Nre and Fcnrb is available according to the General circular
issued by the International banking division, H.O. in Bangalore, and RBI from time to
time.
Advances against IVP/KVP/NSC:
o The loans and overdrafts are available from the bank for any productive purposes
from the bank at a usual rate of interest with the margin of 25% on the face value of
the KVP/NSC/IVP for a period which does not exceed the maturity date of the
deposits.
o The bank will confirm the genuineness of the deposits and also the credit worthiness
of the borrower against the laid down guidelines of the bank.
o The prescribed margin of the deposits purchased 12 months prior will be 35% and
that of the others will be 25% of the face value.
o The concerned post office has to make endorsement of the deposits that the
certificates are now the security of the bank then only the advances are made by the
bank.
o Advances against Shares:
The bank makes advances against Companies shares and debentures in the form of
loans or overdrafts. If the bank is considering of providing loans against shares or
debentures then it should completely comply with the procedure of pre-sanction
appraisal and follow up after sanctioning of loan.Advances against primary security
of shares/debentures are given to the following persons:
o Individuals
o Stock and share brokers
o Trusts and endowments
o Loans and advances given against demated shares and debentures. But the
maximum amount is limited to Rs.20 lakhs.The margin of 40% is set for demated
shares and 50% on physical/infotech shares on its lowest price as on the last Friday
of the month in a recognized stock exchange. Or the average price of the prevailing
month.

Mortgage Loans against Immovable Properties:

The loans on immovable properties is given on the land, benefits that arise of the
land and the things that are attached to the earth but it will not include timber and
growing crops and grass.

The loans and advances are given to the following category of the people at the low
priority level but is sanctioned on fulfilling the eligible norms of the banks:
o Loans to real estate /property developers or builders.
o Loans given for the construction of the cinema hall.
o Loans to community/convention/meeting or marriage halls.
o Loans to educational institutions.
o Loans for constructing hotels, lodges, holiday resorts or private clubs.
o Trading and processing of tobacco.
o Advances given for coffee curing and trading of coffee beans.
o While granting advances against the above immovable properties the bank should
obtain a satisfactory report on the valuation of the properties according to the
prescribed format of the bank covering all aspects at stipulated intervals. Property
inspection should be carried out and the reports should be maintained for future
references. If the bank is taking immovable property in consideration for making
advances it should make sure that the title deeds are not fake.
Advances against the Hypothecation of the Machinery:
If the machineries are being hypothecated to the bank for taking loans then the bank
should take the following precautions while making the advances against the same:
o If the plant and machinery which are being proposed to be hypothecated are
permanently embedded to the earth and the land in which they are embedded is
owned by the proposer but have already been mortgaged to someone else then
such property cannot be taken into consideration for making loans.
o If the machine proposed to be hypothecated is embedded on the land or building
belonging to the person other then the proposer and has been taken on lease then
the hypothecation on such machinery is considered subject to that the ownership on
the machinery is proved by the borrower. And also the letter of No-claim should be
received from the owner of the land.
o If the machine is embedded in the building which is owned by the proposer himself
and there is no restrictions in its hypothecation then the advances can be made
against it.
o The machinery which has been proposed by the applicant should normally be new
but if the machine in question is second hand then the residual life and its
depreciation cost should be taken into account for the security value.
o The bank manager should be clear in his assessment that the machine proposed to
be hypothecated is actually suitable for the project for which the advances are
required.
o If the hypothecation of the machine is done, the bank should get the machine
insured against the risk of fire and the hypothecation to the bank clause should be
clearly mentions in the policy document.
o A small tin plate mentioning “hypothecated to the Vijaya bank” should be fixed on the
machinery to reflect that the plant and the machinery are under hypothecation of the
bank.
o If the borrower is a Company then the hypothecation of the machinery in favor of the
bank should be added as a clause with the Companies Registrar.
o The valuation of the machinery should be assessed by the bank with the help of a
competent engineer.
o The original invoice of the machinery hypothecated should be totally scrutinized to
get the actual market value of the machine after taking its life span into
consideration.
o If the branches are making any advances against the hypothecation of the machine
it should make sure that the set margin by the bank is being maintained.
 o If the bank is granting advances against any motor vehicle the bank should make
sure it is registered with the Regional transport authority.
o All the instructions given for the hypothecation of the machinery and vehicles should
be properly followed.
o Loans To Real Estate And Property Builders And Developers:
Although the proposals received by the builders and developers are given less
priority the bank sometimes grant them advances if they succeed in fulfilling the
norms laid down by the bank under the clause.
Loans to Cinema Theaters and Production of Motion Pictures:
The loans to cinema and theaters are of low priority section of granting advances by
the bank but sometimes the bank considers of granting advances if the borrower
fulfills the required clauses mentioned in the guidelines of the bank.
Hypothecation of Book Debts and Receivables:
If the bank is granting such facility to the Company then the contract should closely
mention that the loans cannot extend more than 90 days. These advances are now
considered as secured advances. The power of attorney should be irrevocable and
should be registered with the drawee on whom the bills are raised or the goods were
supplied.
Loans to Educational Institutions:
The loans to educational institution is also under the low priority list of the bank but is
provided on fulfilling the set norms by the bank.
Loans for Constructing Community Convention Meeting and Marriage Hall:
The loans under this category is also not given any priority by the bank but is
granted on fulfilling the norms of the bank.
Working Capital Finance to the Information Technology:
Advance up to the limit of Rs.1 crore is granted to the software industries under the
category of priority section advance.
Advances against Bill Drawn On and Accepted By the Drawees:
In case of advances made against the usance bills the credit limit cannot exceed 90
days but in certain case of the foreign documentary usance bills the credit period
extends up to 180 days.

EMI Calculator

The borrower is supposed to repay the loan in Equated Monthly Installments which are
dependent on the amount of loan borrowed and the repayment tenure chosen. The
EMIs will be calculated taking into consideration three factors – the loan amount, the
period of repayment and the rate of interest chargeable. Each installment contains a
principal part and an interest part and is required to be paid every month for a maximum
tenure of 60 months as specified in the loan criteria.

Applying for the Loan

Online – for application of the loan online, the applicant should visit the website at
Paisabazaar.com and on the home page there is an option of ‘Home Loans’ which when
clicked would take you to another page. The page checks the applicant’s eligibility before
the loan can be applied. The required personal details are to be provided for checking the
eligibility and if the eligibility criteria of the applicant match the required criteria, the bank
online loan application process can be easily completed.

Checking Loan Status

Whether you have applied for the loan through the online channel or through the offline
channel, you can track the status of the application online on the PaisaBazaar website.