PUNJAB & SIND BANK

(A Govt. of India undertaking)

HO. Priority Sector (Advances) Department
th
7 Floor, Bank House, Rajendra Place , New Delhi –110 125
Ph. No: 25784240 Fax:25725351 e-mail: ho.ps@psb.org.in
Ref: HOPS Dated : 6.12.2010

The Zonal Manager

Punjab & Sind Bank
Zonal Office
Delhi I/ II/III

Dear Sir,

Reg: Financing of Earnest Money for DDA Flats:

Our Bank participated earlier in various schemes launched by HUDA /DDA for booking of plots.
The schemes formulated by the Bank for financing earnest money for booking of plots received an
overwhelming response from the public and attracted good number of clients resulting in substantial
growth of deposits and advances.

Now, DDA has come out with a scheme for booking of 16000 flats belonging to different categories
viz one room / two room / three room sets. The tentative cost for the flats ranges from Rs.3 lac to
Rs.112 lac . The earnest money for booking of plots has been fixed as Rs50000/- for Janta flats
while Rs.150000/- for other categories The scheme has already commenced and will remain open
till 24.12.10. Bank has also formulated a scheme for financing earnest money for booking of DDA
flats with features as mentioned hereunder:-

Sr.No Parameters Norms

(i) Eligibility Individuals/Joint borrowers (Bank Staff is also eligible for booking of plots
under the above DDA scheme).
(ii) Quantum of Upto 100% of the earnest money applicable.
finance
(iii) Rate of interest Bank’s applicable BR presently 8.45% *
(iv) Processing/ NIL . However, Out of pocket expenses like stamp duty of agreement etc. to
Document fee be recovered from the borrower.
(v) Discretionary Branch Managers of Authorized branches.
Powers

* Interest for 4 months ( Rs.1430/- for Janta flats & Rs.4270/- for other categories) ) to be taken in
advance from the borrower in case of 100% finance. However, in case 100% finance is not availed,
then a minimum margin of 10% be taken so as to recover the interest component.

(vi) Classification Account to be classified as Personal Loan under Non-priority sector.

of loan (As per clarification given by RBI)
(vii) Documents Apart from usual documents following documents also to be obtained.
a)Application form (on format prescribed by DDA).
b) Self attested copy of PAN of first applicant
c)Loan application form (as per Bank format).
d)Stamped agreement (as per approved format)
 e)Letter addressed to DDA/ Union Bank of India authorizing the Bank to
collect letter of allotment/recover the loan by selling/cancellation of
booking in case of default.
f)Any other document prescribed by DDA/Bank.
g)Two signed cheques to be obtained (one for booking amount &
interest and other for interest on delayed refund )
h)Name of our Bank / Branch and account No. be correctly entered in the
column No.5 of prescribed DDA application.
i) In column No.10 of DDA application , address for correspondence must
be – Punjab & Sind Bank ( with complete address of our Bank Branch .)

Further , since our Bank is not authorized by DDA to collect earnest money for the above scheme,
a Tie-up arrangement with Union Bank of India has been made for the purpose of remitting earnest
money to DDA. Accordingly, BO Nehru Place, Delhi will collect application forms from Union
Bank of India by making cash payment. One branch each from Zonal office Delhi-I, II, III and BO
Sector –17 B, Chandigarh will collect the application forms from BO. Nehru Place, Delhi and will
deposit the duly completed application forms received from the authorized branches along with
earnest money with Union Bank of India, Nehru Place, New Delhi. The BO Sector –17 B,
Chandigarh and will deposit applications forms along with earnest money to nodal Branch of ZO-
Delhi-III for onward submission to Union Bank of India, Nehru Place, New Delhi.

Zonal Managers to authorize selected branches under their zone for financing earnest money.

A customer may apply for booking a flat immediately now, however, can give option to the Bank to
raise loan at the time of sending the application to DDA which will save him a lot of interest.

It should be ensured that all applications are deposited with Union Bank of India well with in the
stipulated last date i.e. 24.12.2010.

The scheme offered by our Bank is user friendly and quite competitive. Zonal Managers are advised
to provide needed assistance and guidance to motivate the field functionaries for earnest efforts so
that maximum business in terms of deposits/advances is mobilized under the scheme & due publicity
be given displaying banners at branches/Zonal Offices.

Yours faithfully,

(Vijay Srivastava)
General Manager ( PS)
 In Duplicate

(Undertaking / Authority from the borrower for deposit of applications and receipt of acknowledgement slip and to
receive allotment letter / refund order from DDA/ nodal bank for our Bank’s right for appropriating the amount
towards liquidation of loan availed)

Date: ___________________

From:

----------------------------

----------------------------

----------------------------

To

The Chief Administrator, / Union Bank of India

DDA- Delhi / N.Delhi

Dear Sir,

In terms of your offer for allotment of flat in Sector ________________ I/we have applied for
__________________ Sq.m flat by depositing Rs._______________________ as earnest
money with loan assistance from Punjab & Sind Bank __________________ Branch.

To avail the loan facility, I/we have executed an “agreement” dated ________ with Bank which
inter- alia authorize Punjab & Sind Bank that in case of default in repaying the loan as per
agreed terms, Bank may sell the plot and appropriate the proceeds for liquidation of my/our
liability alongwith interest and other charges to its entire satisfaction.

I/we authorize you to send the letter of allotment/refund order to the Punjab & Sind Bank since
my/our application has been financed by them. The Bank shall have right to appropriate the
amount of refund towards my/our loan account and will have lien on the letter of allotment till
full & final adjustment of loan.

A copy of this letter is sent to Punjab & Sind Bank for information.

Yours faithfully,

(Name in Capital of the applicant)

APPLICATION FOR LOAN FOR EARNEST MONEY DEPOSIT _________ DDA SCHEME.

DDA APPLICATION NO. :_____________

To
The Branch Manager
Punjab & Sind Bank
___________ Branch.

Dear Sir,

REG: Financing of Earnest Money DDA Scheme ________________________ Sector.

I/We intend to apply for a residential flat under ____________ scheme for which I/We have to deposit
earnest money to the tune of Rs. ____________. I/We shall contribute ________% of earnest money as
margin and cover for interest on the Principal amount.

Kindly sanction me a loan of Rs. _________(Rupees _____________ ____________________only).

I/We undertake to abide by the terms & conditions and complete the necessary formalities.
Further I/we undertake to deposit the refund order with your branch in case the residential plot is not
allotted to me by DDA.

In case I/We are allotted a flat by DDA, the loan amount availed by me/us will be adjusted within 30
days from the date of allotment or alternatively the Bank is authorized to get the allotment cancelled by
taking up the matter with DDA directly and appropriate the earnest money refund towards my/our
aforesaid loan liability without further reference to me/us. It is expressly understood that there is no
obligation whatsoever on the part of the Bank to sanction housing or any other loan to me/us to pay
balance amount/cost of the flat in the event allotment of flat to me/us by DDA in its absolute discretion
and recover any such amount with interest from me/us. My/our brief particulars are given as under:
1.Name :----------------------------------------------------
1. Father/Husband’s name: ----------------------------------------------------
2. Present residential address:
-----------------------------------------------------------------------------------Phone No. --------------
Mobile No. ------------------------
3. Occupation: ---------------------------------------------------------------
4. Employment/Business details with address of the employer/place of business:
--------------------------------------------------------------------------------------------------------------------
---------------------
Phone No. ----------------- Mobile No. -----------------------
5. Income details (attach proof ITR/salary certificate)

I/we declare that all the particulars and the information given in the application form are true, correct
and they shall form the basis of any loan Punjab & Sind Bank may decide to grant me/us. I/we are
aware that interest on the above loan will be calculated as per rules of the Bank from time to time. I/we
further agree that my/our loan shall be governed by the rules of Punjab & Sind Bank which may be
enforced from time to time.

Yours faithfully,
Sanctioned
Name: ---------------------
Branch Manager A/c No. -------------------
 Bank & Address ---------
-----------------------------

AGREEMENT
PHOTOGRAPH
[To be stamped on Agreement in accordance with the stamp Act in force in
the State in which the Agreement is executed]

This agreement is made at ______________on this day of __________two thousand six executed
by Shri / Smt./ Kum ___________________s/o / wife of/daughter of
R/O
hereinafter called the “Borrower” which expression shall include his/her legal representatives, heirs,
executors, administrators and assignees) in favour of Punjab & Sind Bank a Body Corporate
constituted under the Banking Companies (Acquisition & Transfer of Undertaking) Act,
1970 having its Head Office at 21, Rajendra Place, New Delhi and having one of its branches
amongst other places at __________
(hereinafter referred to as “THE BANK”) .

WHEREAS
1. THE BANK has introduced a scheme of rendering assistance in financing earnest money
deposit for the purpose of making application to the offers of plots/flats in various
approved sectors/ urban estates by State Development agencies/ housing boards/ DDA
etc (hereinafter referred to as the said institution / Authority) is making offer for
allotment of Plots/ flats in Sector__________________ (name of the city) having area
measuring ________ Sq. Yards approx.

2. The Borrower intends to apply for Plot/flat of the said institution / Authority through
the public offer which is now open for subscription. The Borrower has requested the
Bank to sanction a short-term loan of Rs. _________for the specific purpose of applying
for a plot / flat of the said institution / Authority which the Bank has agreed to do as per
terms and conditions stated in the sanction letter.

NOW THIS AGREEMENT WITNESSETH AND IT IS AGREED BETWEEN THE

BORROWER AND BANK AS FOLLOWS:

1. In consideration of the Bank having agreed to sanction a short term loan at the request of
the borrower repayable on demand by the bank of Rs. ___________along with interest
@____________% p.a. with monthly rests to the Borrower for the specific purpose of
subscribing to the public offer of the said institution / Authority and for no other
purpose. The amount of aforesaid advance shall be disbursed by the bank directly to the
said institution / Authority.

2. The borrower has assured the bank that he/she waives his/her right, if any, of the
presentment of the agreement to pay on demand the amount payable by the borrower
hereunder:
 Contd –P/2

(2)

3. The Borrower will deposit with the Bank, interest for the period of the loan, processing
fees and margin money / upfront money.

4. The Borrower authorizes the Bank to recover interest @ ___________% p.a. with
monthly rests on the outstanding loan amount, processing fees of Rs.___________ for
the loan sanctioned for the purpose of applying in the Public offer of the Plot/ flat under
the above mentioned scheme.

5. The application for the subscription to the public offer of Plots / flats made in the name
of Borrower having deposited the sum amount as mentioned in (3) above, on or before
the close of the business hours on the last date of the public offer, the bank shall debit
the loan account with the amount of the loan sanctioned and issue a Banker’s cheque for
the total amount of the application money including the margin money paid by the
Borrower. The Banker’s cheque along with the application form shall be deposited with
the Institution / Authority / its Banker to the offer by the Bank through usual
communication.

6. In case of allotment / acceptance of offer, the borrower shall execute the agreement etc.
as required by the Authority / Institution and pay the requisite installments/payments
within the specified period and / or make arrangements for the payment thereof. The
Bank is hereby authorized in its absolute discretion to make payment of any demand to
the allotting Institution / Authority and debit such amount / amounts to the account of the
borrower and any such overdrawn amount if any shall carry interest at the rate aforesaid.

7. In case of default in adjusting the loan account, the bank shall have the power to sell the
Plot/ flats allotted to the Borrower by the said Institution / Authority and the Bank is also
authorized to get the allotment cancelled and take back the refund due on behalf of the
Borrower. The Bank is further authorized to appropriate the sale proceeds / refund of
Earnest Money of the Plot towards the adjustment of the loan and /or any other
outstanding recoverable from the borrower.

8. The Borrower authorizes the bank to obtain refund / allotment letter/letter of intent from
the said Institution / Authority, on his/her behalf and the receipt/ discharge given by the
bank to the said institution will be considered discharge by the Applicant / Borrower.

9. The bank shall have its charge and lien on all deposits and property (ies) both moveable
and immoveable including hypothecated, pledged, mortgaged or given as security for
repayment of his / her liability in any capacity including as a borrower or guarantor or
shares, securities or deposits lying as security or otherwise in any of its branches, for any
money due and payable by the borrower under this agreement.
 Contd.P3

(3)

10. The borrower authorizes the bank to appropriate the refund amount, if any, received
from the Institution/Authority and credit the same to adjust the loan and interest amount.
Any shortfall in the principal / interest shall be paid by the borrower. After loan amount,
including the interest amount and other charges, is paid by the borrower/recovered by
the bank, the bank shall handover the allotment intimation to the borrower.

11. In case the allotment / refund is delayed for any reason whatsoever including
court cases / litigation etc. the borrower authorizes the Bank to recover such loan
availed by the borrower with upto date interest @ BPLR , penal interest and other
charges thereon till the account is finally liquidated.

12. The bank under no circumstances shall be held liable for any damages arising out of
non-receipt / late receipt of any communication by the institution /Authority from the
bank or vice versa.

13. The bank shall in no way be held responsible for the application being not accepted and
or rejected for any reason whatsoever by the Institution/Authority.

14. The borrower indemnifies the Bank in case of rejection of application due to
misrepresentation of facts or giving false information .

15. The bank shall have legal recourse in case of dishonour of PDCs under section 138 of NI
Act.

IN WITNESS WHEREOF the borrowers have signed and delivered the agreement at the
date and place abovementioned.

Signed and delivered by

Shri/Smt/Kum______________________________ Signature
(Borrower)