`

Project Report
On

ACCOUNTING PROCEDURE & DOCUMENTATION FOR HOME LOAN AT ICICI BANK

Submitted in the partial fulfillment of the Requirement for the award of the degree of

Master of Business Administration (MBA)

Under Guidance of

Mr. RAJAN KUMAR DHAKAD

SUBMITTED TO: Mr. Ashok Kumar Gupta HOD (MBA Dept.)

SUBMITTED BY: Umesh Kumar Roll No. 0512970052 MBA (2005-06)

FORTE INSTITUTE OF TECHNOLOGY, MEERUT

CONTENTS
V COVER PAGE V ACKNOWLEDGEMENT V PREFACE V DECLARATION V CERTIFICATE OF COMPANY V CERTIFICATE OF INSTITUTE EXECUTIVE SUMMARY SPECIALISATION SUBJECTS SPECIALISED DEPARTMWNR IN THE COMPANY

COMPANY PROFILE
V OVERVIEW OF ICICI v BOARD MEMBERS V BOARD COMMITTEES V ICICI BANK GROUP V PRODUCTS, VARIANTS AND SERVICES OFFERED V OBJECTIVE OF ICICI

v ICICI BANK HOME LOANS DOCUMENTATION v CREDIT NORMS BASED ON PRODUCT V CREDIT NORMS SPECIFIC TO SALARIED v CREDIT NORMS SPECIFIC TO SEPs & SENPs V PROCEDURE FOR HOME LOAN APPENDIX QUESTIONNAIRE BIBLIOGRAPHY

ACKNOWLEDGEMENT

I wish to acknowledge with profound sense of appreciation, the help & support I received from Mr. Rajan Kumar Dhakad for giving me an opportunity to develop this project under his guidance.

I express my thank to Mr. Ashok Kumar Gupta, HOD (MBA Dept.) Forte Institute of Technology and all the faculty & staff members of the Department of Business Administration, for their help & encouragement throughout my project work.

I owe a debt of gratitude to my parents and friends without whom I would not have been able to achieve this objective.

UMESH KUMAR Roll No. 0512970052

DECLARATION

I, Umesh Kumar student of MBA 3 rd Sem at Forte Institute of Technology, hereby declare that the project report entitled ACCOUNTING PROCEDURE & DOCUMENTATION FOR HOME LOAN AT ICICI BANK is a result of all my efforts and co-operation by the organisational staff of ICICI Bank Home Loans.

I further declare that the project report prepared and submitted in Partial fulfillment of the requirement for the award of the degree of MBA is the original work of mine, the report contains the data collected by me during the training.

During the training I worked under the guidance of Mr. Rajan Kumar Dhakad, Branch Credit Manager ICICI Bank Home Loans, Meerut.

Place: Date:

UMESH KUMAR Roll No. 0512970052

CERTIFICATE

This is to certify that the project titled Accounting Procedure & Documentation for Home Loan at ICICI Bank Home Loans submitted by Umesh Kumar (Roll No. 0512970052) to U. P. Technical University, Lucknow for the award of the degree of Master of Business Administration (MBA), is a bonafide record of work carried out by the above mentioned student in this institute. It is further certified that this project has been submitted to U. P. Technical University, Lucknow for the partial fulfillment of the requirement of the course of study.

(HOD)

(Guide)

Ph: 91-121-2622672, 2622673 Telefax: .

Website: http://www.forteindia.org

PREFACE

Owning a home is probably one of the most precious and cherished dreams of any person; especially when he/she has to earn his/her living from a fixed quantum of salary. For that a person basically has two options- either save/invest in a planned way, or take a home loan. Home loans can also be termed as Home finance, housing loans or financial assistance for buying a home. It is evident that over past few years, the home loan market in India has grown at a rapid rate of over 40%. The most important sources of home finance are housing finance companies, commercial banks, cooperative banks and other non banking financial companies. As per the reports, there are about 20 national Housing Bank-registered HFCs and over 200 unregistered HFCs in the country offering home loans. Statistics reveal that Housing Development Finance Corporation (HDFC) is leading the market, with State Bank of India (SBI) following it. Then the ICICI Bank and the Life Insurance Corporation (LIC) Housing Finance Limited play a major role in the market. Other foreign-owned banks like Citibank, Standard Chartered and HSBC also owns considerable shares in the market.

In the development of any country, financial institutions play a very important role. Number of housing finance companies have cropped up and are trying to attract consumers by differentiating themselves through various schemes directly or though the private consultancy firms. In the present scenario there is a tough competition among the financial institutions, even among the different schemes of one financial institute. People are flooded with so many home loan schemes from a number of banks and HFCs, but it is important for the home loan seeker to choose the right HFC and right

package. To decide on this he would be well informed about the process of getting the home loan, benefits and hassles in taking the home finance.

Now a days almost all the people are interested for various types of loans so that the income they are earning can be used properly & the rest amount can be paid in the installments. Mostly 50% of the population takes loans to get rid of the rental obligations. Some takes loan for saving the tax obligations & rest of the population take loan as a necessity. The factors that should be considered while approaching an HFC are the lower interest rates, lower documentation requirements, ability to meet the individuals need sof the customers, shorter time span for processing loan applications, and the customer service. In this way the financial institutions play a significant role in the success of any particular scheme.

Here, I carried out a research work to let the people know how a loan is proceed, what norms they should fulfill to take a home loan and what documents are needed for taking a home loan from ICICI Bank. I hope that the research work will be able to explain the details required for a customer to know about the home loan processing.

COMPANY PROFILE

V OVERVIEW OF ICICI

v BOARD MEMBERS

V BOARD COMMITTEES

v ICICI BANK GROUP

v PRODUCTS, VARIANTS & SERVICES OFFERED

V OBJECTIVE OF ICICI

OVERVIEW

ICICI Bank is India's second-largest bank with total assets of about Rs. 2,513.89 bn (US$ 56.3 bn) at March 31, 2006 and profit after tax of Rs. 25.40 bn (US$ 569 mn) for the year ended March 31, 2006 (Rs. 20.05 bn (US$ 449 mn) for the year ended March 31, 2005). ICICI Bank has a network of about 614 branches and extension counters and over 2,200 ATMs. ICICI Bank offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialised subsidiaries and affiliates in the areas of investment banking, life and non-life insurance, venture capital and asset management. ICICI Bank set up its international banking group in fiscal 2002 to cater to the cross border needs of clients and leverage on its domestic banking strengths to offer products internationally. ICICI Bank currently has subsidiaries in the United Kingdom, Russia and Canada, branches in Singapore, Bahrain, Hong Kong, Sri Lanka and Dubai International Finance Centre and representative offices in the United States, United Arab Emirates, China, South Africa and Bangladesh. Our UK subsidiary has established a branch in Belgium. ICICI Bank is the most valuable bank in India in terms of market capitalisation.

ICICI Bank's equity shares are listed in India on the Bombay Stock Exchange and the National Stock Exchange of India Limited and its American Depositary Receipts (ADRs) are listed on the New York Stock Exchange (NYSE). ICICI Bank has formulated a Code of Business Conduct and Ethics for its directors and employees.

At June 5, 2006, ICICI Bank, with free float market capitalization* of about Rs. 480.00 billion (US$ 10.8 billion) ranked third amongst all the companies listed on the Indian stock exchanges.

Exponential Growth:
ICICI Bank was originally promoted in 1994 by ICICI Limited, an Indian financial institution, and was its wholly-owned subsidiary. ICICI's shareholding in ICICI Bank was reduced to 46% through a public offering of shares in India in fiscal 1998, an equity offering in the form of ADRs listed on the NYSE in fiscal 2000, ICICI Bank's acquisition of Bank of Madura Limited in an all-stock amalgamation in fiscal 2001, and secondary market sales by ICICI to institutional investors in fiscal 2001 and fiscal 2002. Industrial Credit & Investment Corporation of India Limited was formed in 1955 at the initiative of the World Bank, the Government of India and representatives of Indian industry. The principal objective was to create a development financial institution for providing medium-term and long-term project financing to Indian businesses. However, Following the economic liberalization of Indian economy it has renamed itself as ICICI and transformed its business from a development financial institution offering only project finance to a diversified financial services group offering a wide variety of products and services, both directly and through a number of subsidiaries and affiliates like ICICI Bank. In 1999, ICICI become the first Indian company and the first bank or financial institution from non-Japan Asia to be listed on the NYSE.

After consideration of various corporate structuring alternatives in the context of the emerging competitive scenario in the Indian banking industry, and the move towards universal banking, the managements of ICICI and ICICI Bank formed the view that the merger of ICICI with ICICI Bank would be the optimal strategic alternative for both entities, and would create the optimal legal structure for the ICICI group's universal banking strategy. The merger would enhance value for ICICI shareholders through the merged entity's

access to low-cost deposits, greater opportunities for earning fee-based income and the ability to participate in the payments system and provide transaction-banking services. The merger would enhance value for ICICI Bank shareholders through a large capital base and scale of operations,

seamless access to ICICI's strong corporate relationships built up over five decades, entry into new business segments, higher market share in various business segments, particularly fee-based services, and access to the vast talent pool of ICICI and its subsidiaries. In October 2001, the Boards of Directors of ICICI and ICICI Bank approved the merger of ICICI and two of its wholly-owned retail finance subsidiaries, ICICI Personal Financial Services Limited and ICICI Capital Services Limited, with ICICI Bank. The merger was approved by shareholders of ICICI and ICICI Bank in January 2002, by the High Court of Gujarat at Ahmedabad in March 2002, and by the High Court of Judicature at Mumbai and the Reserve Bank of India in April 2002. Consequent to the merger, the ICICI group's financing and banking operations, both wholesale and retail, have been integrated in a single entity.

What made this possible?

One man who can claim the phenomenal growth of ICICI is K V Kamath, the CEO of the company under whose stewardship the company had witnessed a spectacular growth. He is the person behind the transformation of ICICI from a financial institution whose main businesses was lending money for industrial projects to a broad based finance group that extends loans to individuals, finances car purchases and engages in mutual funds. The urge for growth seems to be never ending for him and the company. Now the company has focused on achieving the status of a one-stop shop, a universal bank and a financial supermarket catering to different needs of customers ranging from large multi-crore corporations to a common man on the street. In the words of Kamath, "We want to be a global organization in the domestic market."

The participation of the employees in the activities of the company is a key to the success for any organization. ICICI is no exception to this and rightfully the cooperation from the employees to the management has been outstanding. The company has been able to retain the best people through a

combination of training and performance linked compensation. "ICICI has empowered managers to try new techniques, technologies and process and above all, to establish new beachheads for exploitation in the future," says Gopalan Ramachandran, Chief executive, Business Economics and Risk Management.

The other key factor that made the growth of the ICICI possible is the constant lookout for new opportunities and technology. Kamath has once quoted, "Technology at the ICICI will revolutionize the way we access the public for assets or liabilities." The establishment of ICICI Web Trade Limited is an example of the company's willingness to adopt technology. This has helped the company to better manage non-market and other risks, to better serve the customers and to deploy cutting-edge technologies according to an industry observer.

BOARD MEMBERS

v Mr. N. Vaghul, Chairman v Mr. Sridar Iyengar v Mr. R.K.Joshi v Mr. Lakshmi N. Mittal v Mr. Narendra Murkumbi v Mr. Anupam Puri v Mr. Vinod Rai v Mr. M.K. Sharma v Mr. P.M. Sinha v Prof. Marti G. Subrahmanyam v Mr. T.S. Vijayan v Mr. V. Prem Watsa v Mr. K.V. Kamath, Managing Director & CEO v Ms. Lalita D. Gupte, Joint Managing Director v Ms. Kalpana Morparia, Joint Managing Director v Ms. Chanda Kochhar, Deputy Managing Director v Dr. Nachiket Mor, Deputy Managing Director

BOARD COMMITTEES

Audit Committee Mr. Sridar Iyengar Mr. Narendra Murkumbi Mr. M. K. Sharma

Board Governance & Remuneration Committee Mr. N. Vaghul Mr. Anupam Puri Mr. M. K. Sharma Mr. P. M. Sinha Prof. Marti G. Subrahmanyam Credit Committee Mr. N. Vaghul Mr. Narendra Murkumbi Mr. M .K. Sharma Mr. P. M. Sinha Mr. K. V. Kamath Risk Committee Mr. N. Vaghul Mr. Sridar Iyengar Prof. Marti G. Subrahmanyam Mr. V. Prem Watsa Mr. K. V. Kamath Asset-Liability Management Committee Ms. Lalita D. Gupte Ms. Kalpana Morparia Ms. Chanda D. Kochhar Dr. Nachiket Mor

Customer Service Committee Mr. N. Vaghul Mr. Narendra Murkumbi Mr. M .K. Sharma Mr. P. M. Sinha Mr. K. V. Kamath Fraud Monitoring Committee Mr. M. K. Sharma Mr. Narendra Murkumbi Mr. K. V. Kamath Ms. Kalpana Morparia Ms. Chanda D. Kochhar Share Transfer & Shareholders'/ Investors' Grievance Committee Mr. M. K. Sharma Mr. Narendra Murkumbi Ms. Kalpana Morparia Ms. Chanda D. Kochhar

Committee of Directors Ms. Lalita D. Gupte Mr. K. V. Kamath Dr. Nachiket Mor

Ms. Kalpana Morparia

Ms. Chanda D. Kochhar

ICICI BANK GROUP

PRODUCTS, VARIANTS & SERVICES OFFERED BY ICICI BANK

Deposits
Saving A/c

Cards
Credit Cards Debit cum ATM Cards Travel Card

Loans
Home Loans

Investments
ICICI Bank Bonds GOI Bonds

NRI Services
NRE Savings A/c NRO Savings A/c NRE Fixed Deposit NRO Fixed Deposit NRE Recurring Deposit FCNR Fixed Deposit

Others
ICICI bank in News Investors Relation Customer Care Queries

Senior Savings Account Fixed Deposit Easy FD

Personal Loans Car Loans

Mutual Funds

Two Wheeler loans

IPO

Recurring Deposit Private Banking Roaming Current A/c Young Stars Salary A/c

Online Services
Bill Payment Shopping

Commercial Vehicle Loan Loan against Securities Farm Equipment Loans Construction Equipment Loans Office Equipment Loans Medical Equipment Loans Pre Approved Loans

Pure Gold Foreign Ex Services

Feedback

Privacy

Insurance
Life Insurance

RFC Savings A/c RFC Fixed Deposit Home Loans

Online Security Terms and Conditions Disclaimer

Ticket Booking Share Trading Charity

General insurance

Women A/c

Donate2India

Unsubscribe from Emailers USA Patriot Act Certification

EEFC A/c

Demat A/c

OBJECTIVE OF ICICI
To examine the horizontal diversification decision of a financial services institution that aims to become a universal bank. Also, to analyze how an entrant might position itself to compete against powerful incumbents, the strategic transformation of a major financial services institution, and strategic choices faced by companies in emerging markets. In keeping with its objective of being a globally competitive domestic player, ICICI has always been a pioneer in introducing international standards to the Indian financial markets. In particular, ICICI has made continuous efforts to set higher standards for adequate and meaningful dissemination of relevant information with the objective of achieving full transparency for its stakeholders. Financial reporting is an area where ICICI believes that it is imperative to use global benchmarks.

ICICI BANK HOME LOANS DOCUMENTATION

The Home Loan product can be given to an applicant if it exists among the approved borrower entities. Each applicant should meet pre-sanction documentation norms and the credit norms for the approved borrower entity as applicable. All income documents and first page of bank statement need to be signed by the applicant/ co-applicant before submission.

APPROVED BORROWER ENTITIES

The following applicants are eligible for applying for home loans. The approved borrower entities are defined in terms of their residential status and employment category respectively. I. RESIDENT INDIANS: v Salaried v Self Employed-Professional (SEP) v Self employed non professional (SENP)(inclusive of both Retail & nonRetail) Retail customer is defined as a customer applying for loan upto Rs 5 lacs and tenor of 15 years Non-Retail customer is defined as a customer applying for loan above Rs 5 lacs and maximum tenor of 10 years. II. NON-RESIDENT INDIANS (including NRIs and PIOs) v Salaried

DOCUMENTATION REQUIIRED BASED ON TYPE OF BORROWER

Sr. No. 1.

Documents Application form with photograph

Requirement for SALARIED

Requirement for SEP

Requirement for SENP

NRI (SALARIED)

Duly completed Duly completed Duly completed Duly completed NRI application form application form application form application form signed by all signed by all signed by all signed by all applicants. applicants. applicants. applicants. Latest passport Latest passport Latest passport Latest passport photographs of all photographs of all photographs of all photographs of all applicants applicants applicants applicants

Sr. No. 2.

Documents Age proof Age proof is waived for all applicants whose income is not considered for eligibility. However, age proof is mandatory for applicants below 20 years age & above 65 years, even if his/her income is not considered for eligibility.*

Requirement for SALARIED Passport Driving license Life Insurance Policy Birth Certificate Election ID School certificate

Requirement for SEP Passport Driving license Life Insurance Policy Birth Certificate Election ID

Requirement for SENP Passport Driving license Life Insurance Policy Birth Certificate Election ID

NRI (SALARIED) Passport Driving license Life Insurance Policy Birth Certificate Election ID

leaving School certificate

leaving School certificate PAN Card

leaving School certificate

leaving

Employee ID (only PAN Card for PSU or Govt. SSC/HSC Admit card employees) PAN Card SSC/HSC Mark sheet

SSC/HSC Admit card SSC/HSC Mark sheet School/college passing certificate Domicile certificate Ration Card

Employee ID (only for PSU or Govt. employees) PAN Card SSC/HSC card SSC/HSC sheet Admit Mark

SSC/HSC Admit card School/college passing certificate SSC/HSC Mark Domicile certificate sheet School/college passing certificate Salary slip (if date of birth is mentioned) Ration Card

School/college passing certificate Salary slip (if date of

Sr. No. 3.

Documents Job confirmation proof Proof of existence

Requirement for SALARIED

Requirement for SEP

Requirement for SENP Not Applicable

NRI (SALARIED) Not Applicable

Required for applicant Not Applicable below 23 years of age Not Applicable

4.

Partnership deed copy / Partnership deed Not Applicable MOA / article of association if MOA & Articles of association/Form 32 applicable. Not Applicable Latest list of directors Not Applicable and shareholding pattern certified by company secretary

5.

Ownership pattern

Not Applicable

Sr. No. 6.

Documents Business profile

Requirement for SALARIED Not Applicable

Requirement for SEP Not Applicable

Requirement for SENP

NRI (SALARIED)

Must be on the Not Applicable letterhead of the company and should have details like Detailed nature of business activity, No of years in business Product/services, distribution, suppliers Clients, infrastructure, no of employees, market, branches if any, group company if any, assets, future business plans Ownership / equity stake in case of promoter directors

Sr. No. 7.

Documents Office address proof

Requirement for SALARIED Not Applicable

Requirement for SEP

Requirement for SENP

NRI (SALARIED)

Utility bill- telephone Utility bill- telephone Not Applicable bill, electricity bill bill, electricity bill Shop & establishment Shop & establishment act certificate act certificate Sales tax certificate Sales tax certificate

8.

Income proof

For Cheque / Cash Latest three ITRs, When borrower is an Salary certificate (In salaries (Fixed Income) both personal and individualEnglish) specifying All income business along with name, date of documents need to Last one months Latest 3 years ITRs computation of joining, designation be signed by the salary slip with computation for income and salary details applicant/co the individual applicant. Last months salary Latest three years applicants and co Last two months certificate with applicants P&L accounts and salary slips deductions B/S (with schedules) duly certified by a CA- Latest form 16 & salary slip for both personal & directors business Advance tax challans When borrower is a firm or companyif available. Latest 3 years ITRs & audited / C.A certified profit & loss accounts and balance sheets

Sr. No. 9.

Documents Income proof (Salaried) Variable income

Requirement for SALARIED

Requirement for SEP

Requirement for SENP Not Applicable

NRI (SALARIED) Salary certificate (In English) specifying name, date of joining, designation and salary details for last six months Last six salary slips months

For Cheque, Cash & Not Applicable Green channel salary Latest four months salary slips

(An income defined as variable income if Latest months salary the components of certificate with the salary are statement of variable variable like Shift components of allowance, overtime income for last four allowance and flying months allowance etc.) 10. Cash Salary Cash salary secondary Not Applicable income proof: In case of tax paying customer Form 16 or ITR In case of customer paying no tax PF statement Appointment letter Increment letter Not Applicable

Not Applicable.

Sr. No. 11.

Documents Annual benefit if considered for eligibility (Form 16 is compulsory of Salaried)

Requirement for SALARIED

Requirement for SEP

Requirement for SENP Not Applicable

NRI (SALARIED) Appointment letter Increment letter Certificate from Employer with details of annual benefits

Form 16 for financial Not Applicable year (-2), if case is pre July in financial year (0). Or Form 16 for financial year (-1), if application is made post July in financial year (0) Appointment letter / increment letter Certificate from Employer with details of annual benefits

Sr. No. 12.

Documents Bank statement / Pass book copy for applicants whose income is being considered for eligibility. The first page of bank statement need to be signed by the applicant/coapplicant

Requirement for SALARIED

Requirement for SEP

Requirement for SENP

NRI (SALARIED) Latest 6 months bank statements from domestic ( NRE / NRO / FCNR / NRNR ) and international a/c.

Bank statement Bank statement Photocopies of required for 6 months required for 6 months updated bank statements for the Required from salary Required from last six months- from a/c (for cheque operating a/c current a/c of the firm salary) or from or company The photocopy of operating a/c (for front page mentioning Photocopies of cash salary) name of account updated bank The photocopy of holders, account no, statements for the front page bank name and last six months- from mentioning name of branch is to be the current a/c or account holders, obtained. savings a/c of the account no, bank individual applicants name and branch is and co-applicant. to be obtained.

Sr. No. 13.

Documents Existing Loan Repayment Track Record is required from the lending finance company when loan is not repaid regularly through bank statements or EMIs reflected through bank statements

Requirement for SALARIED If existing loan is repaid through salary deduction or through bank statements or if loans are declared on application form or any other document, then these loans will be considered for FOIR if closure statement or less than 12 months balance term proof is not given Not Applicable

Requirement for SEP If existing loan is repaid through bank statements or if loans are declared on application form or any other document, then these loans will be considered for FOIR if closure statement or less than 12 months balance term proof is not given

Requirement for SENP If existing loan is repaid through bank statements or if loans are declared on application form or any other document, then these loans will be considered for FOIR if closure statement or less than 12 months balance term proof is not given

NRI (SALARIED) If existing loan is repaid through salary deduction or through bank statements or if loans are declared on application form or any other document, then these loans will be considered for FOIR if closure statement or less than 12 months balance term proof is not given Copies of valid passport & Visa. Passport should not have a No Entry Stamp on the passport prohibiting NRI applicant entering a country

14.

Passport & Visa

Not Applicable

Not Applicable

Sr. No. 15.

Documents Additional documents for PIO who does not have a valid Indian passport

Requirement for SALARIED Not Applicable

Requirement for SEP Not Applicable

Requirement for SENP Not Applicable

NRI (SALARIED) Declaration as per ICICI format duly notarized and stamped for the requisite value Ration card or passport of the parents of PIO which establishes that his parents are Indians

16.

General Power of Attorney

Not Applicable

Not Applicable

Not Applicable

As per our standard draft duly attested by Indian consulate at the place of residence of the NRI customer in case NRI customer is not available in India at the time of application Power of attorney to be locally notarized if NRI customer is in India

Sr. No. 17.

Documents Proof of continuity of business/ employment for last 3 years or 1 year contract renewal

Requirement for SALARIED Not Applicable

Requirement for SEP Same as Income Proof

Requirement for SENP Not Applicable

NRI (SALARIED) Appointment letter / employment contract copy Increment letter For merchant navy copy of CDC (Continuous discharge certificate) required as an additional document

18.

Signature verification Processing Fee Cheque

Processing fee cheque Processing fee cheque SAME AS SEP from salary a/c / other from operating a/c operating a/c

SAME AS SALARIED

19.

From Salary a/c / From operating a/c on From operating a/c on From NRE / FCNR / operating a/c (for cash which PDCs will be which PDCs will be NRO / NRNR a/c from salary) on which PDCs drawn drawn such accounts as may will be drawn be permitted by RBI from time to time Reports of physical verification & Tele-check at office and/or residence for all applicants are to be done as specified by Policy and Risk from time to time.

20.

FI & Televerification reports

ADDITIONAL DOCUMENTATION WHERE A PRIVATE LIMITED COMPANY IS A BORROWER:

1. When the property is owned by a company:

Sr. No 01.

Document
Loan documentation set

Requirement
Amendatory schedule to the loan agreement Declaration

02.

Memorandum of entry

Mortgage of property by Memorandum of Entry or as mandated by Legal from time to time.

03

Board Resolutions

Board resolution authorizing the company to mortgage the property, borrow and repay the monies. Filing of Form 8 & 13 with the ROC in order to register the charge, post disbursement.

04.

Form 8 & 13 (In case the property is acquired by a Company)

05.

NOC when Limited company is the NOC would be required from the Bankers/other secured lenders for the Loan to be co-owner of the property taken from ICICI Bank. The NOC would be required to be taken as a Pre-disbursal document. In addition, the lenders would exclude the property financed by ICICI Bank from their security. This would be applicable for loans greater than Rs 1 crore

2. When the property is not owned by a company:

Sr. No

Document

Requirement

01. 02.

Loan documentation set Board Resolution

Amendatory schedule to the loan agreement Board resolutions authorizing the Company to borrow and repay the monies.

Pre-Disbursal documentation:

Loan documentation set -

1. Loan agreement must be completely filled in

2. Loan agreement must be correctly stamped

3. The agreement must be signed by all applicants (Loan documentation cannot be marked as PDD)

Technical Appraisal Report - As required by technical manual

Property documents - Legal opinion from an empanelled lawyer certifying a clear & marketable title to the property

Section 4: CREDIT NORMS BASED ON PRODUCT:

Sr. No 1.

Particular
Age of Borrower

Product- Home Loan

Considered for Eligibility: Minimum 21 yrs at loan origination Maximum 65 yrs or age of retirement, whichever is less at loan maturity Not considered for eligibility: Minimum 18 yrs at loan origination Maximum 70 yrs at application or 80 yrs at the time of loan maturity

2.

Borrowers

All owners to be borrowers If no co borrower, PG required No minor to be borrower Max of 3 co borrowers (Co-borrowers can be spouse, parent or brother or son; income of co-borrower can be considered for eligibility)

3. 4.

No. of dependents Geographical Limits

Not to exceed 5 Property to be located within geographical limits Applicant must be staying within geographical limits Parameter Cheque bounces Salary credits (numbers) Green Not to exceed 1 Minimum 3 Non Green Not to exceed 2 Minimum 5

5.

Bank Statement Verification

6.

Banker Verification

Not Applicable

Sr. No 7.

Particular
Additional Security

Product- Home Loan

1. Personal Guarantee 2. Additional Property

8.

Negative Profile

Applicant / Co-Applicant not to be from negative profile list Property not to be located in negative area Customers residence not to be in negative area

9.

Negative Areas

10.

Validity of loan approvals

FOR SALARIED & SEP: 6 Months from the date of sanction Re-credit, if customer makes disbursement request after 6 months from sanction letter date, or, if gap between two disbursements exceeds 6 months. For re-credit, the following documents are necessary Latest salary slip/latest income proof for SEP or SENP Office Tele-check

For change in job, all documentation as defined in section 5 will be required FOR SENP: Sanctions would be valid for a period of 3 months only, subsequent to which Re-credit would be required to be done. In case where the latest ITRs and B/S & P&L Account have not been taken, the same would have to be taken along with the latest Bank Statements 11. Completion period for under construction cases Only those properties, which are going to be completed within 2 years from the first disbursement date, will be financed For property identified, this information has to be obtained through application form For property not identified, the same has to be ensured at the time of disbursement through site engineers report or directly from the builder or through customers letter stating the information

Sr. No 12.

Particular
Decrease in loan amount earlier sanctioned Increase in loan amount earlier sanctioned

Product- Home Loan

Authority: L4, irrespective of credit authority limit FOIR & LTV not to exceed than the earlier sanctioned FOIR & LTV Authority: As per delegated authority of the cumulative loan amount after increase Minimum increase in loan amount (after initial sanction) must be 10% of sanctioned amount subject to minimum of Rs. 20000 Not Applicable To acquire/construct a residential property. The property could be Under construction Ready Resale

13.

14. 15.

NRI transfer back to India Purpose

16.

Loan to Value Ratio

In case of purchase:

85% of COST OF PROPERTY LTV is defined as In case of Resale: Loan/Value of the If COP = MV, LTV = 85% of COP Property If COP < MV, LTV = 85% of MV If COP > MV, LTV = 80% of MV subject to 100% of COP 17. FOIR (for income consideration refer Sec 8 Annexure 4 for details) 4200-<5000 = 40% 5000-<8000 = 45% 8000-<25000 = 50% >=25000 = 55%

Discretion of 2% (Discretion of 2% will be allowed higher than the will be allowed approved limits) higher than the FOR SENPapproved limits. Retail Max 55% Non retail Max 100% subject to combined FOIR+ LTV of 140%

Sr. No 18.

Particular
Loan Amount per applicant

Product- Home Loan

Minimum Rs 2 lac Maximum Rs 3 crore Subject to:- For SENP: Retail max 5 Lacs

19. 20. 21.

Loan Amount athorisation Rate of Interest & Fees Term

As per delegated authority levels Fixed or Adjustable rate of interest as communication by Policy & Risk from time to time Max up to 20 yrs Subject to SENP: Retail 15 yrs, Non-Retail 10 years

22. 23.

Extended Term Type of borrower

Max 30 years Salaried SEP SENP

SENP includes: 1. SENP Retail: Proprietors, Partners, Directors of Pvt. Ltd. Cos. 2. SENP Non-Retail: Individuals Proprietors, Partners, Directors of Pvt. Ltd. Cos. Non-individuals 24. Property Private Limited Companies Property age max 35 yrs at the time of loan application Loan tenor not to exceed residual age of the property at the time of disbursement The property should be self contained 25. Multiple Property Only 1 property per applicant - Deviation at L2

Sr. No 26

Particular
Security of the loan

Product- Home Loan

Equitable mortgage of the property finance by deposit of title deeds. The charge can be First Charge Pari Passu Charge Second charge

27.

Mode of repayment Either through Post dated Cheques Deduction at source Auto debit Monthly payment

28. 29.

No of PDC for EMI Repayment

Minimum 36 and in multiples of 12 thereon EMI

(Note: Existing and SURF or new or any other the repayment FLIP (Maximum 2 stage FLIP calculation i.e. only 2 different EMI over the tenor of the loan) facilities should conform to system Balloon Payment requirements) (Only interest servicing (Pre EMI) till the entire loan is disbursed) 30. Disbursal In case of under construction - favoring builder In case of own-construction - favoring borrower or contractor In ready possessions- favoring seller or builder In case of refinance favoring- builder or seller or borrower 31.
Pre-EMI Charges

For fully disbursed cases: From the cheque hand over date till the end of the month (both days inclusive) For partly disbursed cases: From the cheque hand over date of the 1st disbursement, till the last date of the month in which last disbursement takes place

32.

Pre-Payment fees

As communicated by Policy and Risk from time to time

Sr. No 33.

Particular
Dedup

Product- Home Loan

Deduplication to be carried as a post sanction activity & is to be done at COPS. In back to back situation where the file moves immediately for disbursement after sanction the branches would email the data to COPS and COPS would communicate de-dupe result over mail to branch. Term Loan

34.

Facility Type

Section 5: CREDIT NORMS SPECIFIC TO SALARIED

Sr. No 1.

Particular
Minimum Gross income

Product- Home Loan

Category A Rs 7000

Category B Rs 6000 (combined eligibility of all borrowers) Category C Rs 5000 Note: Minimum income includes core income (salary) and other sources of income 2. 3. Income Consideration Reduced Minimum Income Refer Sec 8, Annexure 4 With PG the Minimum income norms are: Category A Rs 5000 Category B Rs 5000 Category C Rs 4200 4. Minimum Pension Income Rs 48000/ per annum.

(To be considered even when co- applicants (defined as 50% of income not being considered, provided minimum basis + DA of last gross income norms are met) pay drawn) 5. 6. 7. 8. EMI to net salary No. of years in total employment Minimum qualification Extension of loan maturity beyond retirement Interest Subsidy Not to exceed 70% of net salary reflected as per latest salary slip One year Std X (SSC complete) Can exceed retirement age upto 1 year

9.

Refer Section 8, Annexure 4

Sr. No 10.

Particular
Verification of borrowers

Product- Home Loan

Physical verification at Residence and Office Tele-verification at Residence and Office. Cash Salary

Sr. No 11.

Particular
Telephone at Office

Product- Home Loan

It is mandatory in every case for the customer to give his office telephone number. The exception to the above would be the employees of government departments only (not government companies) To be employed in Public Ltd cos. Govt./Public sector MNC

12.

Category of employment

13. Special credit norms: 1) Cash Salaried 1. The applicant must be employed only in Government / PSU sector & Public Ltd. Co. 2. There should be no FI waivers

Sr. No

Particular
2) Defense Personnel

Product- Home Loan

1. Finance only for commissioned officers as per list given below 2. Rank to be validated by employer letter stating clearly that the employee is a permanent employee and is not on short commission/copy of identity proof 3. Rank may also be validated by copy of ID 4. A non-defense guarantor residing at a HFC location 5. If an applicant from defense background is applying for a loan, then one of the immediate relatives of one of the applicants should be staying in the location in which the property is being purchased/constructed. Immediate relatives include Father, Mother, Brother or Sister Army: Lieutenant, Captain, Major, Lt. Colonel, Colonel, Brigadier, Major-General, Lt. General, General Navy: Sub. Lt., Lieutenant, Lt. Commander, Commander, Captain, Commodore, Rear Admiral, Vice Admiral, Admiral Air Force: Flying Officer, Flying Lt., Squadron

Sr. No

Particular

Product- Home Loan

Leader, Wing Commander, Group Captain, Air Commodore, Air Vice Marshal, Air Marshal, Air Chief Marshal.

Sr. No

Particular
3) Software Professionals

Product- Home Loan

1. The PG is required for applicants below 30 years of age & working in software companies on software development. However the PG is not required for applicants working with software companies on software development approved by Policy & Risk from time to time. 2. For all applicants the following additional documents are required: Photocopy of passport Permanent address application form. to be mentioned in

Email address need to be obtained in all cases.

4) Borrower working with Pvt. Ltd. Co.

Norms for the employee Minimum qualification - Graduate Minimum 5 years company/industry. PF deduction slip/certificate to experience be in same salary

reflected

Income proof salary slip/certificate (Bank statements reflecting salary credits) Cheque salary only Norms for the Private Ltd Co.: Minimum 20 employees Minimum turnover of Rs 1 crore Profit making company for last 2 yrs Docs required from Pvt Ltd Co.: (Required Balance sheet & P & L a/c or Turnover details such as sales & profit to be certified on the letterhead of the company)

Sr. No Sr. No

Particular

Product- Home Loan

Particular
5) Borrower working with trust / partnership / sole trading concern

Product- Home Loan

Employees of only select trust, partnership firm and a sole proprietorship concern is to be funded. The entities to be approved by Regional Business Head OR Head Policy & Risk The borrowers employed in the select entities to meet the following additional norms Minimum qualification requirement is a graduate Minimum experience of five years in the same industry

6) Police Employees Personal Guarantee

Only confirmed police employee cases can be done at all PFS locations with a portfolio cap of 3% In case of No Co-borrower, applicant from Defense services, applicant is below 30 yrs of age & is working in software company. Refer Sec 8 Annexure 3

14.

Section 6: CREDIT NORMS SPECIFIC TO SELF EMPLOYED NON PROFESSIONAL (SENP)

SENP IS DIVIDED INTO 2 CATEGORIES: 1. RETAIL: The loan is restricted to Rs. 5 lacs and tenor upto 15 years 2. NON-RETAIL: The minimum loan amount is Rs. 5 lacs and max Rs. 3 crore, tenor restricted to max 10 years.

Sr. No 1.

Particular
Minimum income

Product- Home Loan

Minimum Income will be as following: Retail - Rs 60000 p.a. Non-Retail - Rs100000 p.a. Proprietors Net Profit (P/L) Partners - Partners Share of Net Profit (as per P/L) and Remuneration / Salary from firm (as per P/L or IT returns) Pvt. Ltd co. - Net Profit (as per P/L) Directors - Salary as per latest Form 16 and ITR For fulfilling minimum income norms adding nominal expenses like depreciation, interest on capital to partners / directors etc. to net profit shall not be considered.

2.

Minimum No of years in business Cash losses in last 2 years ITR verification Client Reference

Retail - 5 years Non-Retail - 3 years Retail & Non-Retail - Not acceptable. Retail & Non-Retail - mandatory for latest year Retail - not required Non-Retail - Required

3. 4. 5.

Sr. No 6.

Particular
Telephone in office of business

Product- Home Loan

Retail & Non-Retail - required

Sr. No 7.

Particular
Personal Discussion Field investigation of office / factory / workshop Personal Guarantee Repayment track record

Product- Home Loan

Retail - Not required Non-Retail - Required Retail - required Non-Retail - required Retail and Non-Retail partners / directors

8.

9. 10.

Required

from

main

Mandatory if EMI of the existing loan is more than 10% of appraised income for all loans within the last 6 months. Loan closure statement must matured within last 6 months. for loans

11. 12.

Verification of borrowers Repayment Mode

Retail and Non-Retail - Residence FI, office FI and Office tele verification to be done PDCs Auto Debit or monthly payments by customers with a security PDC

13.

Additional norms for Non-retail

1) When Pvt. Ltd. Co. is the main applicant, all main directors to be taken as co-applicants to the loan. 2) Pvt. Ltd. Co. is to be taken as co-applicant to the loan when income of Pvt. Ltd. Co. is considered for loan eligibility purposes.

14. 15.

Financial Norms Income consideration

Cash profit trends - Maximum drop less than equal to 10% Refer Sec 8 Annexure 4

Sr. No 16.

Particular
LIC Agents

Product- Home Loan

The TDS / certificate issued by LIC for last 3 years required as an additional document to the income proof Eligibility to be calculated on the basis of income as given belowTotal income =100% of renewal business + 50 % of new business / bonus as per latest TDC / certificate

Section 7, Annexure 1: PERSONAL GUARANTEE NORM (PG) Personal guarantee can be Type- I or Type- II. Type I is a PG from whom income proof is required and Type - II is a PG from whom income proof is not required. Type- I PG shall be taken when applicant/s do not meet eligibility norms. applicant/s. Type- II PG shall be taken for establishing contact with

Type-I Guarantor
Cases where financial guarantor shall be taken when

Type-II Guarantor
Cases where non-financial guarantor shall be taken In case of no co-borrowers. In case applicant is from defense services. In case applicant is a software professional below 30 years

7k >minimum income> 5k Category A city

(If applicants income is between Rs.5k and Rs.7k)

6k >minimum income> 5k Category B city

(If applicants income is between Rs.5k and Rs.6k)

5k >minimum income> 4.2k Category C city

(If applicants income is between Rs.4.2k and Rs.5k) Documentation Latest salary slip/Business & personal ITRs with P& L a/c & B/S Photograph Age proof Address proof PG form Documentation Photograph Age proof Address proof PG form

Who can be a personal guarantor?

The guarantor should be known to the applicant. The guarantor should not belong to a negative profile and should not be from negative area. The guarantor should be based in a HFC location. The guarantor should be in service till the maturity of the loan. In case, the guarantor is self-employed, he should not exceed 65 years of age at loan maturity. His net salary should be at least equal to the EMI. If net salary condition is not met, then the applicant can bring 2 guarantors. The guarantor should not have taken/ given any other loan or guarantee to an existing ICICI loan. In case the guarantor has taken loan or given guarantee before, both cumulative loan amount and guarantee shall not exceed the eligibility norm of the Guarantor, as applicable. In case of enhancement of a disbursed loan, where we have earlier taken a Personal Guarantee, we need to get another Personal Guarantee format signed from the Guarantor with the enhanced amount. Guarantee for the enhanced amount. In case of defense services, personal guarantor should be from nondefense background. For software professionals, the personal guarantor must be other than spouse and children. background. The guarantor should be from non-software The same Guarantor or a new Guarantor, meeting the norms may give personal

Income considerable for Salaried Borrower:

Main source of income Particulars

Regular items in salary slip / monthly salary certificate HRA to be added to income if applicant plans to shift to his own house from company provided accommodation Pension income (50% of BASIC + DA, of the last pay drawn) Bonus

% for eligibility
100% 100%

Proof
Salary slip or months salary certificate. Appointment letter Or annual salary certificate

100%

Latest pension slip OR Employer certificate OR Latest salary slip Appointment letter/annual salary certificate Annual salary certificate / appointment letter Annual salary certificate / appointment letter 4 months salary slip / salary certificate mentioning variable salary component for 4 months. Not applicable

100%

Annual benefits (LTA etc) Fixed reimbursements on monthly basis not reflected in salary slip /monthly salary certificate Variable items like overtime, performance incentive, flying allowance, mileage allowance.

50%

50%

50% of average of last 4 months 0%

Reimbursement against actual (medical, telephone bill reimbursement etc.)

Other sources of income Particulars

Agricultural income (As stated in ITR) Rental income Rental income

% For eligibility
50% of average of last 2 years 100% of average of last 2 years 100% of current rental income as per lease agreement 50% of commission on new business and 100% of commission on renewal business
50% of average of last 2 years

Proof
3 years ITRs or ownership document copy 3 years ITRs Lease agreement for 3 years Certificate/ original commission slip from cos.

LIC commission /Broker commission -Commission on LIC, NSC, KVP, IVP and postal savings.
Interest /Dividend Income

3 years ITRs.

The aggregate of the other sources of income must not be more than 100% of the aggregate of main salary income.

Income considerable for Self Employed Professionals: FOIR GPR method for doctors
01. FOIR - GPR method (all business loans and loans for personal use to be taken for FOIR) FOIR= ICICI EMI & other EMIs / (Average GPR for last 2 years / 12)

FOIR NP method for CA, Architects, Lawyers & Professional Consultants

02. FOIR - NP method (only loans for personal use to be taken for FOIR calculation) FOIR= ICICI EMI & other EMIs / (Average NP for last 2 years / 12 )

Note: Gross Professional Receipts (GPR) do not include any nonprofessional receipts such as other sources of income as listed below:

Eligibility from the other sources given below should be calculated separately on the basis of 50% FOIR and added back to the eligibility as calculated above.

Other sources of income

Agricultural income (As stated in ITR) Rental income

% for eligibility

Proof

50% of average of last 3 years ITRs 2 years 100% of average of 3 years ITRs last 2 years Rental income 100% of current rental Lease agreement for 3 income as per lease years agreement Interest /Dividend Income 50% of average of last 3 years ITRs 2 years Medicine income (for 100% of average of 3 years P/L a/c and B/S doctors only) last 2 years (Method of calculation : Net medicine income = Closing stock + SalesPurchase Opening Stock) Note: The aggregate of the eligibility from other sources of income must not be more than 100% of eligibility as calculated above.

Income considerable for Self Employed Non-Professionals:

Type of income

To be considered for eligibility Business Income

A. Net profit B. Depreciation

100% of last two years average 50% of last two years average Note: Depreciation amount calculated by above method should not exceed 100% of last 2 years average Net Profit Can be considered & added back to the net profit of that particular year before considering it for eligibility # In case of net loss, one-time unusual expenditure should not be added back

C. One time / unusual expenditure like office renovation

Personal Income of Applicant and Co-Applicant

D. Salary / Remuneration from Sole Proprietorship / Partnerships / Company E. Agriculture income F. Rental income G. Interest / Dividend Income H. Capital gains & speculation income / sale of asset / one time interest & dividend income / any other unusual income 100% of average of last 2 years Must be reflected in ITR for last 3 years

50% of last two years average Must be reflected in ITR for last 3 years 100% of average of last 2 years Must be reflected in ITR for last 3 years 50% of average of last 2 years Must be reflected in ITR for last 3 years Not to be considered Any income from this source should be deducted from profit before considering it for eligibility

Note: Summation of E, F and G should not exceed 50% of the total appraised income.

Section 8: Annexure 5: Negative profiles:

Daily wage laborers / Mathadi Workers Drivers and Conductors of SRTC / Taxi drivers / Auto Rickshaw Drivers / Commercial Vehicles Drivers HUF Anti Social Elements Politicians Garment Exporters Employees of BIFR Companies Watchmen Security Services - Companies and their Employees Stock Brokers Real estate agents Tour Operators Cable Operators Mine and Quarry workers Firms engaged in parcel movement Plantation / Time Share companies Employees of Chit fund/Stock Broking/Investment companies Bar Owners Employees of NBFCs below AA rating Film stars (The negative list includes all persons associated with the Film Industry i.e. whose income / cash flows are linked with the film industry) Class 4 employees Employees of Dot-Com companies Builders and their relatives

Rejection of a Home Loan Case:

A file may be rejected by the ICICI Bank Authority if there is some authentic reason/s for the requested Home Loan. Reason for rejecting a case may be categorized in the following way:

1) Documentation of Property
Credit documentation as not per policy Technical norms not found Legal documentation not as per policy Fraud document submitted

2) Financial Reasons
PF cheque bounce Negative RCU Unsatisfactory RTR / credit history Income norms not met Employment norms not met Poor financials case High outstanding of Debtors Too many existing obligations

3) Geographical Reasons
Outside geographical limits Property in negative area Residence in negative area

4) Personal Profile
Negative profile Negative FI Dedupe match found Income ownership norms not met Poor banking habits Dependence more than five Manipulated material facts Internal family transaction of property Age norms not met Customer withdrawing Negative reference

Home Loan Procedure at ICICI Bank Home Loans:

The Indian housing finance companies offer a range of options for individual loans. The loan schemes are opened to both Indian Residents and NRIs. The loans schemes for Resident Indians are buying a new house, buying an existing house and Home Improvement. The loans schemes for NRIs are buying a new house and buying an existing house and Home improvement; applied as Resident Indians. There are several schemes and types of loans are available. These are:

1) Home Purchase Loan

2) Home Improvement Loan

3) Home Construction Loan

4) Home Extension Loan

5) Home Conversion Loan

6) Land Purchase Loan

7) Bridge Loan

8) Balance Transfer Loan

9) Top-up Loan

Application Process:

When a customer applies for a home loan at ICICI Bank Home Loans, the customer is introduced to the DME (Direct Marketing Executive). DME is a person who works with a DMA (Direct Market Agency), which is authorized for processing the home loan documentation by ICICI Bank Home Loans. The DME has direct contact with the customer for various requirements of processing a loan. The customer fills the application form and submits all the documents required for home loan to the DME for operation.

Documents required for all applicants at the time of application for a home loan are: 1. Passport size photographs of all the applicants (applicant and coapplicant) 2. Photo ID proof 3. Residence address proof 4. Office address proof (for Company / firm only) 5. ID proof (for Company / firm only) 6. Bank statement for last 6 months of salary account and any other operating account 7. Processing Fee cheque in favour of ICICI Bank

Some other documents are also required by the ICICI Bank with the above documents. In case of Salaried Applicant: 1. Latest salary certificate / Slip showing all the deductions from the employer

2. Four months salary statement required in case of variable salary / Latest form 16 / ITR (Income Tax Return) 3. Appointment / Increment letter from the employer for annual benefits to be considered

In case of Self-Employed Applicant ICICI Bank requires the following documents along with the above mentioned documents: 1. Computation of Income, Balance Sheet and the Profit & Loss Account along with Schedules of the firm / company and individual for the past 2 years duly certified by a Charted Accountant 2. ITR for the firm / company & individual for the past 2 years duly certified by a Charted Accountant 3. Brief profile of company / firm 4. Business continuity proof for the last one year (either a letter from the Bank starting the same or Bank statement for the past one year) 5. Qualification Certificate for Self-Employed Professionals

The moment you decide to buy a home, you can put in your application to ICICI Bank. You can apply for a loan even before you have selected the property. The property need not even be in the same city where you are residing. The only condition being that ICICI Bank has home loan operations in both the cities. Should there be a charge in your financial status or plans, you can withdraw your sanction within 6 months of approval. However, the Bank is always ready to assist the customers in the event of legitimate problems.

Processing Fee:

A processing fee is charged by ICICI Bank for the home loan. Home loans are no different from other types of loans. This is a better deal on different charges individuals have to pay to avail of better services. ICICI Bank charges 0.5% of the amount requested for home loan. Service tax @ 12.24% on above amount is also charged by the bank. It is Rs. 561.20 per Lac or Rs 2000 which is higher.

Interest Rate:

The interest rates charged vary from company to company, and may range from about 9.5% to 15%. The interest rate on ICICI Bank Home Loans is linked to the ICICI Bank Floating Reference Rate (FRR)/PLR. If FRR/PLR is increased by 0.5%, consequently the interest rate for all customers under Adjustable Rate Home Loans (ARHL) also goes up by 0.5%. There is two types of interest rates- fixed rate and floating rate.

Fixed Rate:

Fixed rate of interest remains unchanged for the entire duration of loan. It keeps you away to the worry to pay high interest rates if they are increased in the future. At the same time, you lose the benefit of enjoying the lower rates if they drop in the market. The present scenario decides the entire term of the loan on interest. If the comparative rate of interest is low then it is a good chance for the customer.

Floating Rate:

Floating rate of interest fluctuates according to the market lending rate. The interest you pay may vary depending on the rates that exist in the market lending rate, i.e. you need to pay lower interest if the interest if the interest rate fall and the vice versa. The present rate of interest will not be applied in future. The competitive rate of interest will help you with low interest. Certain risk is involved in floating rates especially when the interest rates increase in future.

Eligibility Criteria:
The eligibility criteria considered for applying for a home loan are as follows: 1. The loan seeker should be an Indian resident or NRI, and should be salaried or self employed (professional or non-professional).

2. It may be difficult for the individuals who have others loans to be paid off to acquire the home loan.

3. The details of the individual such as the number of the people financially dependent on the individual, the individuals credit repayment history and his savings habits are also considered.

Loan Amount:
A number of factors are taken into account when assessing your repayment capacity. Your income, age, number of dependants, qualification, assets and liabilities, stability / continuity of your employment / business are some of them.

However, there are ways by which you can enhance your eligibility.

1. If your spouse is earning, put him/her as a co-applicant. The additional income shall be included to enhance your loan amount. Incidentally, if there is any co-owner they must necessarily be co- applicants.

2. Did you know that your fiancees income can also be considered for sanctioning the loan on your combined income? The disbursement of the loan, however, will be done only after you submit proof of your marriage.

3. Providing additional security like bonds, fixed deposits and LIC policies may also help to enhance eligibility.

While there is no need for a guarantor, it could be that having one might enhance your credibility with us. If so, our loan officer would provide with you the necessary details.

The final amount to be sanctioned will depend on your repayment capacity. However, what you ultimately are entitled to will have to confirm within the limit fixed for each loan.

Sanction Process:

Application form is processed by the CPAs (Credit Processing authorities) for sanction. It moves through the CPAs who upload the information on the computer by prescribed software by the ICICI Bank and ultimately sanction is made by the BCM (Branch Credit manager). The application form with all the necessary documents is known as a File in the sanction process.

SANCTION

COLLECTION OF THE NECESSARY DOCUMENT

CREDIT APPRAISAL BY ICICI BANK

LOAN SANCTION / REJECTION

SANCTION LETTER DELIVERY AT YOUR DOOR STEP

File in the ICICI Bank Home Loan:

Step I

The file is logon by CPCS and I-SFA for processing on the computers in the Bank. In this the basic details of the applicant and co-applicant are uploaded and Dedupe Report is matched that the client is not in the fraud list developed by the Bank Association to know the trust worthiness of the customer.

Step II

FI (Field Investigation) is carried out on the file in which verification of various things is done. In Meerut Branch, Bishnoi financial limited carry out this job. The report includes the following:

1. Residence Verification Report 2. Employment / Business Verification Report 3. Tele Verification Report: i. ii. Residence Verification Report Office Verification Report

Step III

The file is logon by PQIS (Performance Query Information System) and MIS (management Information System). The file is given an ID for the customer applied and all further processes are done with the help of this ID. The PQIS contains the following information:

Application No. Applicant Name Applicant ID Customer Identification No. (CIN) Borrowing entity type Resident (Indian / NRI / PIO) DME Name Status (Sanction / Disbursement / cheque delivered / decisioned) File type (Fresh login / Sanction / Disbursement) Interest Type & rate (Fixed / Floating) Phone (Office / Residence / Mobile) Company Name Tenure in Months Fee Cheque Details File login Date Loan Amount Requested Product (Home Loan / Top Up Loan) Welcome Call Date Date of FI Firing Date of FI Received FI Result RCU (Screened / Sampled) File completion Date BCM Queries Date

Result (Sanction / Reject) Date of sanction / Rejection Date of sanction / Rejection letter Loan Amount Sanctioned

The MIS contains the following information: Sanction entry: Serial No. SALARIED / SEP / SENP Applicant Name Application No. APS No. Channel Loan Amount Cheque Amount Cheque No. Bank Name Login Date Login time Status (Sanction / Pending) Branch credit Manager Credit Relationship Manager Regional Office

Sanction Summary: Channel Today Login Login to OPS Net Login

Rejection Summary: Applicant Name Applicant ID Application No. Amount Requested DMA Reason for Rejection Date of Rejection

Step IV
The file is logon by APS (Application Processing System) for sanction. Here the customer eligibility for loan is checked and various activities like RCU (Risk Commencement Unit), CAM (Credit Appraisal Memo), Sampling Report, deviation Matrix (if needed) and Queries (if suppose to be by the CPA). If the file is logon first time by APS it takes the following information included with it: Sourcing (Applicant & Co-Applicant Details) Applicant Loan Details Reference

Corporate CAM Credit Appraisal Remarks Application History Security Deposit Personal Details Address Work Details Income Expenses Bank Current Assets Liabilities Investment Life Style Salary and Repayment Details

RCU (Risk Commencement Unit): The RCU check the documents attached with the application form to get the knowledge about the validity of the documents. The RCU officer takes all the documents into his consideration and check the eligibility of the applicant for loan. It may be of the following two types: 1. RCU Screening: It is done mostly in case of Salaried Files. The officer just checks the documents eligibility that these are fully capable and right for applying a home loan.

2. RCU Sampled: In it the officer checks the documents and takes the necessary copies in zerox and verifies these from where these are originally issued.

Disbursement

Your loan will be disbursed after you identify and select the property or home that you are purchasing and on your submission of the requisite legal documents.

While you may be under the impression that the list of documents asked for is rather extensive. Each and every single document asked for will be verified and checked to ensure your safety.

This may take some time but ICICI Bank want to ensure a clear title and will complete all the legal and technical verifications to ensure that you have full rights to your home.

The 230-A clearance of the seller and / or 371 clearance from the appropriate income tax authorities (if applicable) is also needed.

On satisfactory completion of the above, on registration of the conveyance deed and on the investment of your own contribution, the loan amount (as warranted by the stage of construction) will be disbursed by the bank. The disbursement will be in favour of the builder / seller.

List of the Standard document for disbursement: Loan agreements

Disbursement requests

Post- dated cheques

Personal guarantors documents, as the case may be

DISBURSEMENT

REQUEST FOR DISBURSENT RECEIVED BY

ICICI BANK

COUNSELOR EXPLIANS ANS COLLECTS

REQUIRED PROPERTY DOCUMENTS

DOCUMENTS ARE LEGALLY VETTED AND

STAGE OF CONSTRUCTION OF PROPERTY

IS VERIFIED

DISBURSEMENT CHEQUE IS PREPARED AND

DELIVERED BASED ON ABOVE CHECKS

Repayment of a Home Loan

Repayment of loan is Equated Monthly Installments (EMI).

EMI is calculated on Monthly Rent basis and comprises both of interest & principal. Starting EMI have more interest and less principal value while the later EMI have vice versa. EMI are prepaid either by :

Post Dated Cheques

Auto Debit Facility (if applicant is an ICICI Bank account holer)

ECS

Pre EMI Interest:

Pre EMI interest is calculated at simple interest and pre EMI interest charges are to be collected on monthly basis.

Pre EMI interest is to be paid from the days of disbursement (fully and partially) till the date of commencement of EMI.

Charges:
Processing and Administration Fees = 0.5%

Part Pre-payment charges

= Nil

Full Pre-payment charges = 2% of the amount prepaid. However ICICI Bank reserves the right to change the rate as and when required.

What is Repayment Tenures? Home equity loans Office premise loan Home loan Maximum loan tenure of 15 year s Maximum loan tenure of 15 year s Maximum loan tenure of 30 year s

How is the Loan repaid? All loans repayments are done via Equated Monthly Installments (EMI) What is an EMI? An EMI refers to an Equated Monthly Installments. Its a fixed amount which you pay every month towards your loan. It comprises of both principal repayment and interest repayment.

When does the repayment start? EMI payments start from the month following the month in which the full disbursement has been made. How is the EMI paid? The EMI is to be paid every month through Post Dated Cheques (PDCs) or Electronic Clearing System (ECS)*. If you are opting for PDCs, then you will have to provide 36 PDCs upfront. The PDCs are to be dated on the 1st of every month. However, if you receive your salary a few days later, no problem. ICICI Bank provide the flexibility of the dating the cheques for the 7th of the months.

* ECS facility is available in selected cities only.

What if a PDC bounces?

In the case of a bounced cheque or delayed payment, charges and outstanding dues will be charged as per the prevailing company policy. You can replace old PDCs with new ones within 5-7 working days.

What is Pre EMI interest?

In the case of part disbursement of the loan, monthly interest is payable on the disbursed amount. This interest is called Pre EMI Interest (PEMI) and is monthly payable till the final disbursement is made, after which is the EMIs would commence.

When do I pay PEMIs?

The first Pre EMI is payable by cheque by the end of the month in which the disbursement Is made and each subsequent PEMI at the end of every month till the commencement of EMI.