For Internal Circulation only

COMPENDIUM
ON
STANDARISED
LOAN DOCUMENTS
REQUIRED FOR
LOAN SCHEMES

March 05, 2014

INTEGRATED RISK MANAGEMENT DIVISION,

HO, 7, BHIKAIJI CAMA PLACE, NEW DELHI 110607
 Index :

S.No Name of the scheme Page Number

1. Advance against Deposits 3-4
2. Advance against bills accompanied by lorry Receipts 4
3. Advance against Book Debts 4-5
4. Advance against Govt. Securities. 5-6
5. Advance against Life Insurance Policies. 6-7
6. Advance against NSC, KVP 8
7. Advance against postal securities- post office time 8-9
deposits & postal life insurance policies. (PLIs)
8. Advance against shares & debentures 9-11
9. Advance against units of mutual funds. 11-12
10. Advance under duty draw back credit scheme. 12
11. Financing against future lease rentals. 12-13
12. Bank guarantees 13
13. Inland letter of credit 13
14. Scheme for financing against assured future 13
receivables PNB CASH FLOW DISCOUNTING
15. Scheme for financing services sector 13
16. Scheme for financing film production. 13
17. Finance against pledge of ware house receipts 14
issued by central/state warehousing Corporations.
18. Scheme for conveyance loan to officer Staff. 15
19. Scheme for conveyance loan to Award Staff. 15
20. Scheme for festival advance to the members of staff. 15
21. Scheme for grant of clean overdraft /demand loan 15-16
facility to staff members.
22. Housing loan scheme for the members of staff. 16
23. Relief loans for staff members affected by flood/ 16
earth quake.
24. Scheme for Financing Vendors of ATMs/cash 16
dispensers
25. Scheme for Financing of Point of Services (POS) 16-17
terminals for business correspondents
26. Financing to Corporates against Retention Money 17
Receivables

27. General Instructions 18

Sr. Name of the Scheme Documents

No.
1 Advance against Bank I. Deposit in the name of borrower:-
Deposits
A. Demand Loan
(Reference Circular : L&A - Application/Letter of pledge/lien (PNB-308)
05/2014) - Letter of Undertaking from the borrower to repay
the loan as per Appendix-V
(B) Overdraft
- Application/Letter of Pledge/Lien - PNB-308 (The
pronote portion will not be executed).
- Agreement of Loan/Overdraft - PNB-727A
(stamped)
- AOF and specimen signature slip.
- (a) For advance against Fixed Deposit /
Confirmation of Deposit - Confirmation of Deposit
duly discharged across revenue stamp of the
appropriate value.
- (b) For advances against Recurring Deposit -
Receipt in Recurring Deposit Pass Book duly
discharged across revenue stamp of the
appropriate value along with the Pass Book.

II. Deposit in the name of third party:-

(A) Demand Loan:

Documents to be executed by the borrower:-

- Demand Pronote PNB-728 (stamped).
- Letter of Undertaking to repay the loan as per
Appendix-V

Documents to be executed by the depositor:-

- Letter of Pledge/Lien - PNB-308 (The Pronote will

not be executed).

- For advance against Fixed Deposit /

Confirmation of Deposit - Confirmation of
Deposit duly discharged across revenue stamp of
the appropriate value.

For advance against Recurring Deposit

Receipt in Recurring Deposit Pass Book duly
discharged across revenue stamp of the
appropriate value alongwith the Pass Book.

(B) Overdraft

Documents to be executed by the borrower:-

- Overdraft Agreement - PNB-727A (Stamped)
- AOF and specimen signature slip
3

 Documents to be executed by the depositor:-

- Application-cum-Letter of Pledge/Lien - PNB-308

(The Pronote will not be executed).
- For advance against Fixed
Deposit/Confirmation of Deposit
- Confirmation of Deposit duly discharged across
revenue stamp of the appropriate value.
For advance against Recurring Deposit
Receipt in Recurring Deposit Pass Book duly
discharged across revenue stamp of the
appropriate value alongwith the Pass Book.

2 Advance against bills Letter from the borrower on Form No. PNB 393
-
accompanied by Lorry MTR of approved transport company with Banks
-
Receipt. name as consignee.
- Letter of indemnity indemnifying the Bank against
(Reference Circular : L&A any loss due to delay in collection, transmission,
54/2011) etc. PNB222.
- Letter from the borrower for excluding old bills
from the Drawing power PNB-390.
- Letter from the borrower as per Annexure 22 of
Books of Instructions Chapter-X.
- Letter of Indemnity - ANNEXURE III
- Special Forwarding Note ANNEXURE IV
- Proforma of Letter while asking for re-booking
ANNEXURE V
3 Advance against Book CASH CREDIT
Debts.
A. Fresh Execution
(Reference Circular : L&A
119/2013) - Agreement of Hypothecation of Book Debts - PNB
516 (Stamped).
- Agreement in respect of collateral securities.
- Guarantee Deed PNB 58 (H) from the
guarantor(s), if any.
- AOF and Specimen Signatures slip.

B. Change in the Terms and Conditions

- Letter from the borrower agreeing to the changes

in the terms and conditions.
- Letter from the borrower to the effect that the
operation may continue to be allowed in the
existing account and that the existing securities
shall continue to be securities for the renewed
limit also.
- The account already running should not be
closed.

 C. Enhancement in the Limit

- Agreement of Hypothecation of Book Debts - PNB

516 (Stamped). For the enhanced portion of the
limit (opening para of PNB 516 should be taken as
per Annexure 1).
- Supplementary agreement in respect of the
collateral security to cover the enhancement in the
limit.
- Guarantee Deed PNB 58(H) for the additional
limits from the guarantor(s).

D. Combined Loan Document, where facilities are

given against security of both - Stocks and
Book Debts

- A single document i.e. PNB 1031 is to be obtained

to secure the credit facility sanctioned against
hypothecation of stocks and book debts.
- Existing Hypothecation Agreement viz. PNB-148
or PNB-516 shall continue to be obtained where
facility is allowed either against the security of
stocks or book debts alone.
- In cases where any or all the facilities, i.e. CC
facilities (relating to stocks, book debts or bills)
against security of both stocks and book debts,
are given to a borrower or security of both the
stocks and book debts are desired to be obtained
for any such facilities, hypothecation agreement
as per (PNB-1031) be obtained. In respect of CC
(ABC), PNB-222 shall also be obtained.
- In cases where facilities have already been allowed
against the security of book debts and security of
stocks is proposed to be obtained, in such cases
supplementary agreement as per Annexure 2 be
obtained in addition.

- In cases where facilities have already been allowed

against the security of stocks and security of
book debts is proposed to be obtained, in such
cases supplementary agreement as per Annexure
3 be obtained in addition.

4 Advance against Govt. A) Demand Loan

securities.
- Application for advances against shares and
(Reference Circular : L&A government securities-PNB-334.
124/2007) - Demand Pronote-PNB 728 (Stamped).
Government Securities duly endorsed/transferred
in favour of the Bank.

 B) Overdraft

- Application for advances against shares and

- Government securities - PNB-334.
- Overdraft Agreement (Stamped) PNB-150.
- Government securities duly endorsed/transferred
in favour of the Bank.
- AOF and Specimen Signature Slip.
5 Advance against Life Advance Against Life Insurance Policies
Insurance Policies (Other than LICs Bima Bachat Policy)
(Reference Circular : L&A
a) Policy in the Name of Borrower
112/2013)
Demand Loan
- Demand Pronote - PNB 728 (Stamped)
- Payment voucher duly receipted across
revenue stamp of appropriate value.
- Certified true copy of the payment voucher for day
book (Not to be signed by the borrower).
- Letter of Undertaking from the policy holder to
keep the policy alive (for each life policy) - PNB-
338.
- Notice of Assignment as per Appendix-I (in
duplicate). The policy after incorporating the
absolute assignment as per Appendix-II duly
signed by the policy holder and witnessed
should be sent to Life Insurance
Corporation/Insurance Company along with the
notice of assignment (Appendix-I) for getting the
assignment registered.
- Latest premium receipts.
- Undated letter of authority for surrendering the
policy as per Appendix-III. (This should be taken
for each life policy separately)

Overdraft

- Overdraft Agreement - PNB 727 A (Stamped).

- Letter of Undertaking from the policy holder to keep
the policy alive (for each life policy)-PNB-338.
- Notice of Assignment as per Appendix-I (in
duplicate). The Policy after incorporating the
absolute assignment as per Appendix-II duly signed
by the policy holder and witnessed should be sent to
Life Insurance Corporation/Insurance Company
along with the notice of assignment Appendix-I for
getting the assignment registered.
- Latest premium receipts.
- Undated letter of authority for surrendering the
policy as per Appendix-III (This should be taken for
each life policy separately)
- AOF and Specimen Signatures Slip.

 b) Policy in the Name of the Third Party

Demand Loan
Documents to be Executed by the Borrower:
- Demand Pronote - PNB-728 (Stamped).
- Payment voucher duly receipted across revenue
stamp of appropriate value.
- Certified true copy of the payment voucher for day
book (Not to be signed by the borrower).
- Letter of Pledge for policy - PNB-491.
Documents to be Executed by the Assured of the
Life Policy:-
- Letter of Undertaking from the policy holder to
keep the policy alive - PNB-490.
- Notice of Assignment as per Appendix-I (in
duplicate). The policy after incorporating the
absolute assignment as per Appendix-II duly
signed by the policy holder and witnessed
should be sent to Life Insurance
Corporation/Insurance Company along with the
notice of assignment (Appendix-I) for getting the
assignment registered.
- Undated letter of authority for surrendering the
policy as per Appendix-III. (This should be taken
for each life policy separately)

Overdraft:

Documents to be Executed by the Borrower:-

- Overdraft Agreement - PNB 727 A (Stamped).

- Letter of Pledge for policy - PNB-491.
- AOF and Specimen Signature Slip.
Documents to be Executed by the Assured of the Life
Policy

- Letter of Undertaking from the policy holder to

keep the policy alive - PNB-490.
- Notice of Assignment as per Appendix-I (in
duplicate). The policy after incorporating the
absolute assignment as per Appendix-II duly
signed by the policy holder and witnessed
should be sent to Life Insurance
Corporation/Insurance Company along with the
notice of assignment (Appendix-I) for getting the
assignment registered.
- Undated letter of authority for surrendering the
policy as per Appendix-III. (This should be taken
for each Life Policy separately).

6 Advance against NSC, Demand Loan (NSC)

KVP.
- Demand pronote PNB 728 stamped.
(Reference Circular : L&A - Application for advance for shares and
129/2013) Government Securities PNB 334.
- NSCs duly pledged/transferred in favour of the
Bank.

Overdraft (NSC)

- Overdraft agreement PNB- 727 A (Stamped).
- Application for advance for shares and
Government Securities PNB - 334.
- AOF and specimen signature slip.
- NSCs duly pledged/transferred in favour of the
Bank.

Demand Loan(KVPs)

- Demand pronote PNB 728 stamped.
- Application for advance for shares and Govt.
Securities - PNB-334.
- Letter of Lien - PNB 308.

Overdraft (KVPs)

Overdraft agreement PNB- 727 A (stamped).
-
Application
- for advance for shares and
Government Securities PNB-334.
- AOF and specimen signature slip.
- Letter of Lien - PNB 308.
7 Advances against postal A) DEMAND LOAN
securities - post office
time deposits & postal - Demand Pronote-PNB 728 (Stamped)
life insurance policies - Payment voucher duly receipted across Rs.1
Revenue Stamp.
(PLIs).
- Certified true copy of the payment voucher for day
book (not to be signed by the borrower).
(Reference Circular : L&A
- Application for advances against shares and
134/2007)
government securities-PNB-334.
- Agreement of advance against Shares & Govt.
Securities-PNB151 (Stamped).
- Post Office Time Deposit duly pledged in favour of
the Bank.
- Letter of Lien- PNB 308.

B) OVERDRAFT

- Overdraft Agreement (Stamped) PNB-727A.

- Application for advances against shares and
Government securities - PNB-334.
- Agreement of advance against Shares & Govt.
Securities-PNB151 (Stamped).
8

 - Post Office Time Deposit duly pledged in favour of

the Bank.
- AOF and Specimen Signature Slip.
- Letter of Lien- PNB 308.
8 Advance against shares & debentures
(Reference Circular : L&A 92/2011)
a) Advances to `Individuals DEMAND LOAN
and `Other Borrowers'
- Demand Pronote - PNB 728 (Stamped)
- Application for advance against shares and
Government Securities - PNB 334.
- Agreement of advances against shares and Govt.
securities - PNB 151 (stamped)
- Share Scrip
- Blank transfer deeds duly signed and witnessed.
- Witness should not be husband/wife of the
borrower.
OVERDRAFT

Overdraft Agreement - PNB 727 A (Stamped)

-
Application for advances against shares and
-
government securities. - PNB 334
- Agreement of advances against shares and
government securities - PNB -151 (stamped)
- Share scrip
- Blank transfer deeds duly signed and witnessed.
- Witness should not be husband/wife of the
borrower.
- AOF and specimen signature slip.
b) Advances to Share and Demand Loan*
Stock Brokers - Application Form (PNB-325)
- Promisory Note (PNB-728) Stamped
- Letter of request (Agreement) to be stamped as
agreement (Appendix XIV)
- Agreement of Deposit (by way of Pledge) of/to
create security interest on securities(stamped) -
(Appendix XV)
- Letter from the borrower for deposit of shares
with the Bank (Appendix XVI)
- Payment voucher duly receipted across revenue
stamp of the appropriate value.
- Stamped certified true copy of the payment
voucher for the day book (not to be signed by the
borrower).
Overdraft*

- Application Form (PNB 325)

- Overdraft Agreement PNB 727 A (stamped)
- Agreement of Deposit (by way of Pledge) of/to
create security interest on securities
(stamped) - (Appendix XV)
- Letter from the borrower for deposit of shares
9

 with the Bank (Appendix XVI)

- Payment voucher duly receipted across revenue
stamp of the appropriate value.
- Stamped certified true copy of the payment
- Voucher for the day book (not to be signed
by the borrower).
- AOF and Specimen Signature Slip.

Letter of Guarantee*

Application (PNB 777)

-
General Counter Indemnity
-
Agreement of Deposit (by way of Pledge) of/to
-
create security interest on securities (stamped)
(Appendix XV)
- Letter from the borrower for deposit of share with
the Bank (Appendix XVI)
c) Advances to Market Demand Loan*
Makers - Application Form (PNB-325)
- Promisory Note (PNB-728) Stamped
- Letter of request (Agreement) to be stamped as
agreement (Appendix XIV)
- Agreement of Deposit (by way of Pledge) of/to
create security interest on securities (stamped)
- (Appendix XV)
- Letter from the borrower for deposit of shares
with the Bank (Appendix XVI)
- Payment voucher duly receipted across revenue
stamp of the appropriate value.
- Stamped certified true copy of the payment
voucher for the day book (not to be signed by the
borrower).

Overdraft*
- Application Form (PNB 325)
- Overdraft Agreement PNB 727 A (stamped)
- Agreement of Deposit (by way of Pledge) of/to
- create security interest on securities (stamped)
- (Appendix XV)
- Letter from the borrower for deposit of shares
with the Bank (Appendix XVI)
- Payment voucher duly receipted across revenue
stamp of the appropriate value.
- Stamped certified true copy of the payment
- Voucher for the day book (not to be signed by the
borrower).
- AOF and Specimen Signature Slip.

10

 *In addition to the above, where security of

Shares in Physical form is obtained, the
following are also to be taken:
- Share scrip
- Blank transfer deeds duly signed and witnessed.
d) Advance against shares to - In addition to documentation as applicable in case
Corporates of companies/ body corporates, the following
documents relating to Demand Loan against
security of shares to be obtained:
- Demand pronote - PNB 728 (stamped).
- Payment voucher duly receipted across revenue
stamp of the appropriate value.

- Stamped certified true copy of the payment

voucher for day book (not to be signed by the
borrower);
- Application for advance against shares and
Government securities PNB 334;
- Share scrip.
- Blank transfer deeds duly signed and witnessed.
- Agreement of advances against shares & Govt.
Securities PNB-151
e) Advances to individuals - Loan Application Form as per Appendix-A.
for financing subscription - Loan agreement as per Appendix-B.
to IPO/ESOP - After allotment of shares, Appendix-C & D be
taken for creation of pledge.
f) Financial assistance for As approved by Law Division, HO on case to case basis.
acquisition of equity in
overseas joint ventures/
wholly owned subsidiaries
or in other overseas
companies, new or
existing, as strategic
investment
9 Advance against units Demand Loan
of Mutual Funds. - Demand pronote-PNB 728 stamped.
- Payment voucher duly receipted across Re.1
(Reference Circular : L&A revenue stamp.
104/2011) - Certified true copy of the payment voucher for
daybook (not to be signed by the borrower).
- Application for advances against units of mutual
fund - Govt. securities - PNB 334.
- Blank transfer deeds duly signed on forms
prescribed by the respective mutual funds (in case
of units in physical form).
- Letter of authority as per proforma `B' & `C' and
acknowledgement of the trust for our letter as per
proforma `A'.
- Pledge of unit/s after getting the bank lien noted
from the respective mutual fund.
11

 - For advances over Rs.5 lakhs the units should be

got transferred in the name of the bank.
- Agreement of advances against shares & Govt.
securities - (Stamped) PNB 151.
- For units in demat form, documents as applicable in
case of advance against shares in demat form may
be obtained (refer L&A Cir. No. 92 dated 12.8.2011).
Overdraft
- Overdraft Agreement - (Stamped) PNB-727A
- Application for advances against units and Govt.
securities - PNB 334.
- Blank transfer deeds (in case of units in physical
form) duly signed on forms prescribed by the
respective mutual funds.
- Letter of authority as per proforma `B' and `C' and
acknowledgement of the respective mutual funds
for our letter as per proforma `A'.
- Agreement of advances against shares & govt.
securities - (Stamped) PNB 151.
- A.O.F. and specimen signature slip.
- Pledge of units after getting the bank lien noted by
the respective mutual funds.
- For advances over Rs.5 lakhs, the units should be
got transferred in the name of the bank.
10 Advances under duty - Demand Pronote (Stamped)/Agreement for
drawback credit overdraft
scheme. - Agreement (Stamped) - Annexure-A
- Power of Attorney (Stamped) - Annexure-B
(Reference Circular : L&A - Letter of request - Annexure-C (to be obtained
20/2014 every time advance is made within the overall
limit sanctioned)
11 Financing against - Loan Application-APPENDIX-I
future lease rentals.
- Term loan Cum Hypothecation Agreement for
(Reference Circular : L&A assignment of lease rentals- APPENDIX-II, OD
98/2013) agreement APPENDIX-III
- Tripartite Agreement between the lessor, lessee
and the Bank APPENDIX-IV. (Not applicable in
case our Bank is lessee).
- In cases, where loan has been granted to property
owners against rentals/income that may arise
under Leave & License Agreement or any other
such arrangement under the Scheme for financing
against future lease rentals, Tripartite agreement
between the licensor, licensee and the Bank shall
be obtained for payment of rentals/license fees
directly to the Bank.
- Irrevocable Power of Attorney - APPENDIX-V.
- Letter of Undertaking - APPENDIX-VI.

12

 - Approved plan of leased property/property being

mortgaged.
- Necessary documents for creation of equitable
mortgage.
12 Bank guarantees. - Application for issuing a guarantee PNB-777
- Guarantee bond - PNB-685 (Revised)
(Reference Circular : L&A - Counter indemnity PNB-684
127/2008) - General counter indemnity Appendix-IV
- Letter of request Appendix-V
13 Inland Letter of Credit. - Application for inland irrevocable confirmed
revolving documentary credit PNB-1077
(Reference Circular : L&A - Master agreement for inland documentary credit
175/2004) - PNB-1079
- Letter of request for inland irrevocable confirmed
revolving documentary credit PNB-1078
14 Scheme for Financing - Operating statement (consolidated)-Appendix-I
Against Assured Future - Term loan Cum Hypothecation Agreement
Receivables PNB cash Appendix-IV.
flowdiscounting. - In cases, where the branch maintaining the
Escrow Account is other than the Lending
(Reference Circular : L&A Branch, a letter from the borrower shall be
77/2011) obtained- Appendix-V.
- Necessary documents for creation of mortgage of
IPs shall be obtained.
15 Scheme for Financing - Standard documents for loan and security as
Services Sector. prescribed by the Bank for the respective facilities
shall be obtained.
(Reference Circular : L&A
- In respect of finance against future receivables,
20/2005)
besides standard documents for loan & security,
the following documents shall also be obtained:
- Tripartite Agreement Appendix VII
- Power of Attorney Appendix VIII
- Letter of Authority Appendix IX
16 Scheme for Financing - Cash credit agreement for hypothecation of assets
Film Production including book debts and the balance lying in
Reference Circular : L&A trust and retention account as per Proforma II.
67/2007) - A tripartite agreement (Escrow arrangement)
among the producers borrower, the laboratory
and the Bank, as per Proforma III.
- A Trust & Retention Agreement among the
producers borrowers, bank and the Trust and
Retention Agent Bank as per tripartite agreement
given at Proforma IV.
- Tripartite agreement among the distributor, film
producers and Bank, as per Proforma V.

13

17 Finance against pledge of Cash Credit (Pledge) Limit:

Warehouse Receipts - Loan Application PNB 325
issued by Central/State - Agreement of Pledge - PNB 149 (Stamped).
warehousing - Warehouse receipt duly endorsed in favour of the
Corporations. Bank alongwith a letter from the borrower as per
Form No. PNB 446 or 447 (whichever is suitable).
Reference Circular : L&A - Before making advance, a notice of pledge of
149/2007) Warehouse Receipt should be sent to Warehouse
on Form No. PNB 461 and acknowledgement
obtained thereof should be kept with the
documents.
- Letter from the borrower addressed to
warehouseman intimating the pledge of the
warehouse receipt with the Bank - PNB 462 as per
prescribed format.
- Insurance Certificate from the warehouseman
(Appendix I).
- OR
- Indemnification certificate from the
warehouseman
- as per prescribed format(Appendix II).
- Negative lien on immovable properties of
borrower/guarantor on the prescribed format for
advances upto Rs. 10 lacs. (Appendix III)
Demand Loan:
- Loan Application (Appendix IV)
- Demand Pronote PNB 728 (Stamped)
- Warehouse receipt duly endorsed in favour of the
Bank alongwith a letter from the borrower as per
Form No. PNB 446 or 447 (whichever is suitable).
- Before making advance, a notice of pledge of
Warehouse Receipt should be sent to Warehouse
on Form No. PNB 461 and acknowledgement
obtained thereof should be kept with the
documents.

- Letter from the borrower addressed to

warehouseman intimating the pledge of the
warehouse receipt with the Bank - PNB 462 as per
prescribed format.
- Insurance Certificate from the warehouseman
(Appendix I).
- OR
- Indemnification certificate from the
warehouseman as per prescribed format
(Appendix II).
- Negative lien on immovable properties of
borrower/guarantor on the prescribed format for
advances upto Rs. 10 lacs (Appendix III).

14

18 Schemes for For all types of vehicles, i.e. Car/Scooter/Motor

conveyance loan to Cycle/ Moped/Bicycle
Officer staff. - Letter of request-cum-sanction letter (PROFORMA
`A')
(Reference Circular : - Letter of hypothecation as (PROFORMA `B')
L&A100/2013 - Letter of authority for deducting monthly
instalment from the salary of the borrowing
employee as per specimen (PROFORMA C).
- Letter of authority authorising the bank to utilise
the gratuity and other dues, payable to him/her
on ceasing to be in the service towards
adjustment of the conveyance loan (PROFORMA
D).
- Letter of authority addressed to the Trustees PNB
Employees PF Trust authorizing the bank to
utilise the PF dues payable to him/her on
ceasing to be in the service towards adjustment of
the conveyance loan (PROFORMA E).
19 Schemes for For all types of vehicles, i.e. Car/Scooter/Motor
conveyance loan to Cycle/ Moped/Bicycle
Award staff. - Letter of request-cum-sanction letter (PROFORMA
(Reference Circular L&A `A') Letter of hypothecation as (PROFORMA `B')
- Letter of authority for deducting monthly
89/2013)
instalment from the salary of the borrowing
employee as per specimen (PROFORMA C).
- Letter of authority authorising the bank to utilise
the gratuity and other dues, payable to him/her
on ceasing to be in the service towards
adjustment of the conveyance loan (PROFORMA
D).
- Letter of authority addressed to the Trustees PNB
Employees PF Trust authorizing the bank to
utilise the PF dues payable to him/her on
ceasing to be in the service towards adjustment of
the conveyance loan (PROFORMA E).
20 Scheme for festival - Application-cum-sanction letter and Irrevocable
advance to the Letter of Authority for deduction of monthly
members of staff. installments from the salary (proforma enclosed
L&A 109/2011.

- Payment Voucher in duplicate (stamped for
documents and unstamped for Day Book).
(Reference Circular :

L&A109/2011

21 Scheme for grant of - Application-cum-Sanction Letter in duplicate

clean overdraft/demand
loan facility to staff
members.
(Reference Circular :
L&A 123/2011)
(Appendix of L&A 123/2011)
- Agreement for Overdraft (Appendix 2) alongwith
AOF.
- Demand Promissory Note (PNB- 728(stamped)) for
Demand Loan.
- Transfer Payment Voucher duly receipted.

15

 - Letter of authority for deducting monthly

instalment from the salary of the borrowing
employee as per specimen (Appendix 5)
- Letter of authority, (in duplicate) authorizing the
bank to utilize the gratuity, etc., towards
adjustment of outstanding under
overdraft/demand loan facility (Appendix 3).
- Letter of authority, (in duplicate) authorizing the
bank to utilize the PF dues, towards adjustment of
outstanding under overdraft/demand loan facility.
(Appendix 4).
- Documents relating to mortgage, wherever
applicable, should also be obtained in terms of
existing guidelines.
22 Housing loan scheme Applicable documents out of Annexure- 1 to 22 to be
for the members of obtained as per requirement as given in Annexure-D of
staff. L&A Cir. No.62/06.
(Reference Circular : L&A
62/2006)
23 Relief loans for staff - Transfer payment voucher duly receipted.
members affected by - Demand Pronote PNB 728 (stamped).
flood/earthquake - Application-cum-sanction letter, as per Proforma I
enclosed. (to be obtained in duplicate)
(Reference Circular : L&A - Irrevocable letter of authority for deduction of
54/2007) monthly instalments from the salary as per
Proforma II enclosed.
- Letter of Authority authorizing the Bank to utilize
the gratuity and other dues payable to the
employee when he ceases to be in the service of
the Bank as per Proforma III enclosed (to be
obtained in duplicate).
- Certified true copy of the payment voucher for Day
Book (not to be signed by the borrower).
24 Scheme for Financing a) Term Loan Agreement as per Appendix - I
Vendors of ATMs/cash b) To ensure the assignment of future receivables the
dispensers following documents shall be obtained:
(Reference Circular: L&A
i) Tripartite Agreement as per Appendix - II
60/2012)
ii) Power of Attorney as per Appendix - III
Letter of Authority
(Appendix-I, II & III of L&A 60/2012)
25 Scheme for Financing of a) Term Loan Agreement as per Appendix - I
Point of Services (POS) b) To ensure the assignment of future receivables
terminals for business (incentive payable) the following documents shall be
correspondents obtained:
(Reference Circular: L&A
61/2012 i) Power of Attorney authorizing the financing
(base) branch to collect the incentive payable to
BC from different branches as per Appendix-II
ii) Letter of Authority, authorizing the branches to
remit the incentive payable to BCs attached
with them in to escrow A/c maintained with
base branch as per Appendix -III.
16

 c) Necessary documents for creation of mortgage of IPs

wherever applicable shall be obtained.
(Appendix-I, II & III of L&A 61/2012)
26 Financing to Corporates Standard Loan documents shall be obtained. In cases
against Retention Money where some special clauses are to be incorporated, the
Receivables documents shall be got drafted from the Law Dept./Div.
at CO/HO.
(Reference Circular: L&A
03/2014)

17

General Instructions

1. The above list of documents is not exhaustive and wherever necessary,

others documents (depending upon type of credit facilities extended) as per Book of
Instruction on loans and Circulars/instructions issued from time to time should
also be got executed by the borrower and/ or guarantor(s).

2. Annexure, and/or Appendix wherever mentioned, means Annexure/Appendix to

the relevant reference circular.

3. In case of advance to companies, Bank's charge should be registered with the

Registrar of companies.

4. Loan application in the prescribed format according to the activity/ scheme to be

obtained in all the cases.

5. Wherever mortgage of IP is prescribed guidelines issued by IRMD and Law Division

pertaining to mortgage should be adhered to , including filing of particulars with
Central Registry.

***************

18