AN INTERNSHIP STUDY ON BANK OF BARODA

RETAIL LOAN: RISE OF DEFAULTS RESONS & SUGGESTED MEANS FOR RECOVERY
SUBMITTED IN PARTIAL FULFILLMENT OF THE REQUIREMENTS OF BHARATHIAR UNIVERSITY FOR THE AWARD OF DEGREE IN

MASTER OF BUSINESS ADMINISTRATION

Submitted By: LAKSHYADHAR DEKA

REG NO: 10P35F1043

UNDER THE GUIDANCE OF Prof.-Ravikeerthi

Presidency College,Bangalore Off: Bangalore International Airport Road, 33/2, C&D, Kempapura- Hebbel, Bangalore-560 024 Tel:(088)-42478700-99 Fax: (088) 23636174 E-mail: contact@presidencycollege.com

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STUDENTS DECLARATION

I LAKSHYADHAR DEKA bearing Register number 10P35F1043 hereby declare that this Dissertation titled RETAIL LOAN: RISE & DEFAULTS REASONS & SUGGESTED MEANS FOR RECOVERY UNDER BANK OF BARODA is an original work carried out by me under the guidance of Mr. ASHWINI KUMAR towards the partial fulfilment of requirements for the MBA programme of the Bharathiar University. This has not been submitted earlier to any other University or Institution for the award of any degree/ diploma/ certificate.

Date: Place: Bangalore.

LAKSHYADHAR DEKA. REG No-10P35F1043

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ACKNOWLEDGEMENT

The satisfaction that accompanies the successful completion of any task would be incomplete without the mention of the people who made it possible, whose constant guidance and encouragement made my efforts a success. I sincerely thank my project guide MR SOUVIK DAS for his valuable advice, support and guidance throughout this project. I also take this opportunity to thank BRAHM SHARMA, the Director and other faculty members for their support and co-operation. I am also deeply indebted to my friends and family members who are directly and indirectly involved in bringing out this project.

Date: Place: Bangalore LAKSHYADHAR DEKA.

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TABLE OF CONTENT
SERIAL NO A B PARTICULARS CHAPTER-1 INTRODUCTION CHAPTER-2 HISTORY VISSION & MISSION COMPANY PROFILE ORGANIZATION COMPETITORS CHAPTER-3 ORGANIZATION STRUCTURE CHAPTER-4 RETAIL LOAN HOME LOAN BARODA MORTGAGE LOAN BARODA ASHRAY BARODA TRADERS LOAN BARODA EDUCATION LOAN BARODA AUTO LOAN BARODA PERSONAL LOAN BARODA ADVANCE AGAINST GOLD BARODA TREAD LOAN AGAINST THE SECURITY OF GOLD BARODA LOAN TO DOCTORS BARODA LOAN AGAINST SECURITY LOAN AGAINST FUTURE RENT RECEIVABLES BARODA SALARY ADVANTAGE SAVINGS ACCOUNT E CHAPTER-5 RESEARCH AND SUGGESTION SWOT ANALYSIS CHAPTER-6 SUMMARY PAGE NO

C D

QUESTIONNAIRE BIBOLOGRAPHY.

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CHAPTER - 1

INTRODUCTION

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INTRODUCTION

Bank of Baroda was found by Maharaja Sayajirao Gackwad in 20July 1908 in Gujarat. Bank of Baroda (BoB) is the third largest bank in India, after the State Bank of India and the Punjab National Bank and ahead of ICICI Bank. Bank of Baroda is ranked 763 in Forbes Global 2000 list. Bank of Baroda has total assets in excess of Rs. 3.58 lakh crores, or Rs. 3,583 billion, a network of over 3,409 branches and offices, and about 1,657 ATMs. It plans to open 400 new branches in the coming year. It offers a wide range of banking products and financial services to corporate and retail customers through a variety of delivery channels and through its specialized subsidiaries and affiliates in the areas of investment banking, credit cards and asset management. Its total business was Rs. 5,452 billion as of June 30. As of August 2010, the bank has 78 branches abroad and by the end of FY11 this number should climb to 90. In 2010, BOB opened a branch in Auckland, New Zealand, and its tenth branch in the United Kingdom. The bank also plans to open five branches in Africa. Besides branches, Bank of Baroda plans to open three outlets in the Persian Gulf region that will consist of ATMs with a couple of people. Head Office of Bank of Baroda, Baroda in India The Maharajah of Baroda, Sir Sayajirao Gaekwad III, founded the bank on 20 July 1908 in the princely state of Baroda, in Gujarat. The bank, along with 13 other major commercial banks of India, was nationalised on 19 July 1969, by the government of India.

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CHAPTER 2

HISTORY

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HISTORY
1908-1959 1908: Maharaja Sayajirao GaekwaI set up Bank of Baroda. 1910: Bank of Baroda established its first branch in Ahmadabad. 1953: Bank of Baroda established a branch in Mombasa and another in Kampala. 1954: Bank of Baroda opened a branch in Nairobi. 1956: Bank of Baroda opened a branch in Dar-es-Salaam. 1957: Bank of Baroda established a branch in London. 1960s Bank of Baroda also opened a branch in Fiji. 1962: Bank of Baroda opened a branch in Mauritius. 1963: Bank of Baroda acquired Surat Banking Corporation in Surat, Gujarat. 1969: The Government of India nationalized 14 top banks, including Bank of Baroda. Bank of Baroda incorporated its operations in Uganda as a 51% subsidiary, with the government owning the rest. 1970s 1972: Bank of Baroda acquired The Bank of Indias operations in Uganda. 1974: Bank of Baroda opened a branch each in Dubai and Abu Dhabi. 1975: Bank of Baroda acquired the majority shareholding and management control of Bareilly Corporation Bank (est. 1928) and Nainital Bank (est. in 1954), both in Uttar Pradesh. Since then, Nainital Bank has expanded to Uttarakhand State. 1976: Bank of Baroda opened a branch in Oman and another in Brussels. The Brussels branch was aimed at Indian firms from Mumbai (Bombay) engaged in diamond cutting and jewellery having business in Antwerp, a major centre for diamond cutting. 1978: Bank of Baroda opened a branch in New York and another in the Seychelles. 1979: Bank of Baroda opened a branch in Nassau, the Bahamas.
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 1977: Bank of Baroda Opened a branch in Imphal

1980s Bank of Baroda opened a branch in Bahrain and a representative office in Sydney, Australia. Bank of Baroda, Union Bank of India and Indian Bank established IUB International Finance, a licensed deposit taker, in Hong Kong. Each of the three banks took an equal share. 1985: Bank of Baroda (20%), Bank of India (20%), Central Bank of India (20%) and ZIMCO (Zambian government; 40%) established IndoZambia Bank (Lusaka). Bank of Baroda also opened an Offshore Banking Unit (OBU) in Bahrain. 1988: Bank of Baroda acquired Traders Bank, which had a branch network in Delhi. 1990s 1990: Bank of Baroda opened an OBU in Mauritius, but closed its representative office in Sydney. 1991: Bank of Baroda took over the London branches of Union Bank of India and Punjab & Sind Bank (P&S). P&Ss branch had been established before 1970 and Union Banks after 1980. The Reserve Bank of India ordered the takeover of the two following the banks' involvement in the Sethia fraud in 1987 and subsequent losses. 1992: Bank of Baroda incorporated its operations in Kenya into a local subsidiary with a small tranche of shares quoted on the Nairobi Stock Exchange. 1993: Bank of Baroda closed its OBU in Bahrain. 1996: Bank of Baroda entered the capital market in December with an Initial Public Offering (IPO). The Government of India is still the largest shareholder, owning 66% of the bank's equity. 1997: Bank of Baroda opened a branch in Durban.

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2000s

2000: Bank of Baroda established Bank of Baroda (Botswana). 2002: Bank of Baroda acquired Benares State Bank (BSB) at the Reserve
Bank of Indias request. BSB was established in 1946 but traced its origins back to 1871 and its function as the treasury office of the Benares state. In 1964, BSB had acquired Bareilly Bank (est. 1934), with seven branches; it also had taken over Lucknow Bank in 1968. The acquisition of BSB brought Bank of Baroda 105 new branches. 2002: Bank of Baroda (Uganda) was listed on the Uganda Securities Exchange (USE). 2003: Bank of Baroda opened an OBU in Mumbai. 2005: Bank of Baroda build a Global Data Center (DC) in Mumbai running its Centralized Banking Solution(CBS) and application in more than 1,900 branches across India and 20 other countries where the bank operates . Bank of Baroda also opened a representative office in Thailand. 2006: Bank of Baroda established an Offshore Banking Unit (OBU) in Singapore. 2007: In its centenary year, Bank of Barodas total business crossed 2.09 lakh crores, its branches crossed 1000, and its global customer base 29 million people. 2008: Bank of Baroda opened a branch in Guangzhou, China (02/08/2008) and in Kenton, Harrow United Kingdom. 2008: Bank of Baroda opened a joint venture life insurance company with Andhra Bank and Legal and General (UK) called India First Life Insurance Company 2009: The Bank of Baroda registered with the Reserve Bank of New Zealand, enabling it to trade as a bank in New Zealand (2009/09/01)

2010s 2010: Malaysia awarded a commercial banking license to a locally incorporated bank to be jointly owned by Bank of Baroda, Indian Overseas Bank and Andhra Bank. The new bank, India BIA Bank (Malaysia), will reside in Kuala Lumpur, which has a large population of Indians. Andhra Bank will hold a 25% stake in the joint-venture, Bank of Baroda will own 40% and IOB the remaining 35%

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VISSION AND MISSION OF BANK OF BARODA

MISSION: To be a top ranking National Bank of International Standards committed to augmenting Stake holders value through concern, care and competence A SAGA OF VISSION AND ENTERPRISE: It has been a long and evenfall journey of almost a century across 25 countries. Starting in 1908 from small building in Baroda to its new hi-rise and hi-tech Baroda corporate centre in Mumbai, it is a saga of vision, enterprise, financial prudence and corporate governance. It is a story scripted in corporate wisdom and social pride. It is a story crafted in private capital, princely patronage and state own ship. It is a story of ordinary barkers and their extraordinary contribution in the assent of Bank of Baroda to the formidable heights of corporate glory. It is a story that needs to be share with all those millions of people. Customer, stakeholders, employees & the public at large-who in ample measure, have contributed to the making of an institution.

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COMPANY PROFILE

Date of Establishment: Revenue: Market Cap: Corporate Address:

1908 4908.26 ( USD in Millions ) 303369.9020092 ( Rs. in Millions ) Baroda House, Mandvi, Vadodara-390006, Gujarat www.bankofbaroda.com Bank Public Bank of Baroda (BoB) was founded by Maharaja Sayajirao Gaekwad in July 1908. It started with a paid up capital of Rs10 lakhs. Presently it has a network of 2,884 branches across India. BoB has 72 branches in 25 countries; namely Australia,

Business Operation: Background:

Financials:

Total Income - Rs. 246951.016 Million ( year ending Mar 2011) Net Profit - Rs. 42416.797 Million (year ending Mar 2011)

Awards: BoB was among the top 10 marketers according to survey conducted by Business Today. BoB received the Best Bank award in the home loan category at Outlook Money NDTV Awards The bank won Elite Category Award for excellence in marketing and brand communication at Association of Business Communicators of India awards.

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COMPETITORS OF BoB

COMPANY

SALES (RS.MILLION) 813943.64

CURRENT PRICE 1912.80 971.25 767.90 428.75 313.25 236.80 107.85 209.00 289.80 166.60 121.05 105.10

CHANGE (%) 1.68 1.10 1.05 0.53 0.11 0.72 0.79 0.67 0.17 1.34 0.71 1.25

P/E RATIO 14.95 6.96 6.87 5.14 7.76 6.42 6.11 5.10 5.73 5.25 5.31 5.64

MARKET CAP.(RS.MILLION)

52-WEEK HIGH/LOW

1235422.29 311141.22 303369.90 192173.40 177059.64 124817.33 105944.54 89392.16 85558.97 78385.06 68296.78 67473.37

3515/1813 1395/897 1050/681 844/401 588/290 427/225 202/103 317/189 545/280 271/162 190/114 212/95

SBI PNB BANK OF BARODA CANARA BANK BANK OF INDIA UNION BANK OF INDIA IDBI INDIAN BANK ORIANTAL BANK ALLAHABAD BANK ANDHRA BANK CENTRAL BANK OF INDIA CORPORATIO N BANK INDIAN OVERSEAS BANK SYNDICATE BANK UCO BANK ST.BK OF TRAVANCORE STATE BANK BIKANE&JAI VIJAYA BANK STATE BANK OF MYSORE DENA BANK UNITED BANK BANK OF MAHARASHT RA

269864.80 218859.16 230640.13 217517.24 164526.15 186008.23 93610.28 120878.14 110146.92 82912.77 152205.66

91352.48 121014.65

443.50 99.80

0.12 0.25

4.66 5.78

66644.84 62277.12

815/411 176/100

114508.59 113708.02 52287.61 47964.83 58440.60 40790.76 50335.26 63414.57 55630.88

103.05 69.00 632.00 414.00 59.00 597.00 84.10 77.30 48.85

0.49 0.00 0.66 0.57 0.77 0.49 -0.24 0.45 0.72

5.29 4.63 4.42 5.06 6.69 6.13 4.30 4.87 7.09

59564.38 43486.96 31700.00 29116.50 28265.47 27785.01 27571.28 26709.82 23676.17

164/91 152/62 965/590 704/391 115/54 1001/501 151/75 152/71 85/47

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Domestic Branch Network

Regional Break-up of Domestic Branches as on 30th June, 2011 Metro 765 Urban 639 Semi Urban 842 Rural 1,172

Banks network of domestic branches as on 30th June, 2011 was 3,409 & no. of ATMs were 1,657. During Q1, FY12, the Bank opened 45 new branches. In FY12, the Bank plans to open 269 branches in Tier-1 & Tier-2 centres and 253 branches in Tier-3 to Tier-6 centres. Also, 126 branches under the Branch Expansion Plan of FY11 are yet to be opened. Newly opened branches in Q1, FY12 are mainly in Maharashtra followed by Gujarat, M.P. & A.P. Around 34.4% of the Banks network at the endJune, FY12 was situated in rural areas.

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Concentration (%): Domestic Branch Network

Pattern of Shareholding: 30th June, 2011

As on 30th June, 2011

Share Capital: Rs 392.81 crore No. of Shares: 391.55 million Net worth: Rs 20,785.30 crore B. V. per share: Rs 530.85 Return on Equity: 19.88% BOB is a Part of the following Indexes BSE 100, BSE 200, BSE 500 & Bankex Nifty Junior, BankNifty, CNX 100, CNX 500 BOBs Share is listed on BSE and NSE in Future and Options segment also.

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Banks Business Growth (Y-O-Y): Jun06 to Jun11

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Banks Profitability: Jun06 to Jun11

Banks Asset Quality: Jun06 to Jun11

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CHAPTER-3

ORGANIZATION STRUCTURE OF BANK OF BARODA

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Shri. M. D. Mallya Chairman & Managing Director

Shri Rajiv Kumar Bakshi Executive Director

Shri N S Srinath Executive Director

Shri Alok Nigam Director

Shri Sudarshan Sen Director

Shri Ajay Mathur Director

Shri Vinil Kumar Saxena Director

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Shri V. B. Chavan Director

Dr. Masarrat Shahid Director

Shri Satya Dev Tripathi Director

Dr. Dharmendra Bhandari Director

Dr. Deepak B. Phatak Director

Shri Maulin Vaishnav Director

Board of Director of Bank of Baroda

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CHAPTER-4

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RETAIL LOANS

DAFINATION: This sector of credit is subject to higher rate of interest providing ample yield to the bank along with diversification of risk because smaller loan are granted to a large no of people. Rate of interest is high in this case, bank earn more profit in this sector. Risk factor is low because the amount of loan is very low and it given to large amount of people. There are various retail loan products in Bank of Baroda viz Home loan Baroda Mortgage Loan Baroda Ashray Loan(Reverse Mortgage Loan) Baroda Traders Loan Baroda Education Loan Baroda Auto Loan Baroda Personal Loan Baroda Advance Against Gold Jewellery/Ornament Baroda Traders Loan Against The Security of Gold Jewellery Baroda Loan To Doctor Baroda Loan Against Security Loan Against Future Loan Receivables Baroda Salary Advantage Saving Account

Ornament /

Details of some of the Retail loan scheme which contributes more in the retail segment of BoB are as under.

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BARODA HOME LOAN

As we are aware that our Bank was having different products related to Home Loan sector. These Loan Schemes vide Banks Circular no. BCC: BR: 101:93 dated 28.03.2009 have been realigned for operational convenience under the name BARODA HOME LOAN as below: 1) Baroda Home Loan 2) Baroda Home Loan to NRIs /PIOs 3) Baroda Home Improvement Loan 4) Baroda AAA to Residents / NRIs 5) Interest Subsidy Scheme for Housing to Urban Poors For the convenience of the readers the salient features of the schemes as mentioned above are detailed separately as under: BARODA HOME LOAN PURPOSE: Purchasing of new residential house / flat and construction of new dwelling unit. Purchase of old dwelling unit (not more than 25 years old). Beyond 25 years Regional Head permission required subject to ascertaining structural soundness / residual life of the building (5 yrs more than the repayment period). Purchase of plot of land, subject to construction thereon within 3 years or up to the period allowed by Development Authority (whichever is earlier) from the date of purchase of plot.. Repayment of loan already availed from any other Bank / HFCs and /or other sources, provided documentary evidences are produced. For houses / flats constructed / purchased (not prior to 24 months) from own sources. Loan for purchase / construction of second house can be considered who secure HL-1 to

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HL 3 risks rating under CRISIL rating. [Reimbursement of cost of plot is not admissible under the scheme] ELIGIBILITY: All individuals singly or jointly Principal applicant must be employed minimum for three (03) years. Minimum Age Principal Borrower 21 yrs and Co-borrower - 18 yrs (Salaried Person repayment period shouldnt be beyond retirement age and for others - 65 years) Home Loan for the second house for self occupation can also be considered for the person who already owns a house. Housing Loan to HUF is not to be considered as it is not meant for family business of HUF. LIMIT: The maximum limit is Rs 100 lacs. However, the actual quantum of loan should be arrived at after considering the income criteria & repaying capacity. For Extension - up to Rs 10.00 lacs (however, total amount of the loan sanctioned including that for extension should not exceed Rs 100lacs. INCOME CRITERIA: SOURCE SALARIED INCOME Up to Rs 20,000/= More than Rs 20,000/= and up to Rs 1 lac More than Rs 1 lac CRITERIA 39 times of monthly gross income 48 time of monthly gross income 54 time of average (last 3 years) annual income excluding depreciation 5 time of average (last 3 years) annual excluding depreciation

Other than Salaried Persons

Wherever income of the family members is clubbed, they should be madeco-borrowers. Income of the Agriculturists who are predominantly dependent on agriculture and not required to file the income tax may be assessed by obtaining income certificate from the local competent revenue authority only. The assessment of income so arrived must be properly recorded with justification in the appraisal note.
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REPAYING CAPACITY: Total deductions including proposed EMI should be as below: (I) IN CASE OF SALARIED PERSONS: MONTHLY INCOME (Bracket) TOTAL DEDUCTION NOT TO EXCEED(Including proposed EMI) Up to Rs 20,000/40% Rs 20,000/- and up to Rs 50,000/50% Rs 50,000/60% (11) IN CASE OF OTHERS: ANNUAL INCOME Up to Rs 2,40,000/ Rs 2,40,000/- and up to Rs 12 lacs Rs 12 lacs MARGIN: For Salaried Persons: MONTHLY INCOME Up to Rs 20,000/PURPOSE Purchase of Plot(incl. registration charge & cost of stamps) House/ flat already constructed from own resources All other case including outright purchase of readymade House /flats or constructed from own resources Purchase of Plot (incl.registration charges MARGINE 20% TOTAL DEDUCTION NOT TO EXCEED (Including proposed EMI) 50% 60% 70%

25%

20%

Above Rs 20,000/-

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& cost of stamps ) House / Flat already constructed from own resources All other cases including out right purchase of Readymade Houses / flats or construction of houses For Others:

20%

20%

20%

For purchase of plot and all other cases including out right purchase of Readymade Houses / flats or construction of houses: 20% For houses / flats already constructed from own resources and loan is taken subsequently, 20% of the cost of construction / purchase price of house / flat. While taking over the Home Loans from other Banks / HFCs, Branches are requested to ensure that a minimum margin of 20% on the value of house property is available. REPAYMENT: Maximum 25 years (including moratorium period) Moratorium Period 18 months Age of the borrower plus repayment period should not exceed: Retirement age in case of salaried 65 years in case of others The repayment period in case of salaried persons can be extended up to 65 yrs in case drawing pension subject to condition that 40% of the pension is sufficient to pay EMI. Interest charged during the pre EMI period is to be recovered as and when debited, before commencement of recovery by EMI.

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RESET CLAUSE: W.e.f. 16.08.07 Bank has introduced Reset Clause per which Interest rates under Fixed rate option will be reviewed and revised at every 5 years (BCC/BR/99/243 dated 04.08.2007) accordingly first reset will take place on or after 04.08.2012 i.e. after 5 years of sanction. The reset period (vide BCC/BR/100/313 dated 15.11.2008) w.e.f. 17.11.2008 has been reduced / modified from existing 5 years to 3 years. However, the fresh sanctions will be only on floating rate of interest only. RISK RATING: All home loan applications are subject to CRISIL Risk rating (BOBRAM). Total marks are 168 and the cut-off is set at 96.

SECURITY: Mortgage of the property constructed / purchased. If mortgage is no available, branch can accept, at its discretion, security of adequate value in the form of collaterals as may be deemed adequate including third party guarantee from individuals. In cases where procedure for execution of sale deed / conveyance deed forming a co-operative society and issuance of share certificate takes a very long time and as such there are practical difficulties in creating equitable mortgage at the time of sanction of loan for flats developed by builders / developers following procedure may be adopted: Create equitable mortgage by obtaining following documents duly supported with the advocates search report and opinion of titles of the land as also on the agreement to sale. Duly stamped and registered original agreement to sale executed by builder in favour of borrower. Original receipt in respect of registration of Agreement to sell. Copy of the map of the building duly approved by the appropriate authority.

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 NOC from the builder for creating mortgage and noting of Banks lien if the building is under construction. Share Certificate, if society is formed, duly supported with NOC from the society for creation of mortgage and noting of our lien in Societys record. Possession letter in original. OTHER CHARGES: Unified Processing Charges: For Loan up to Rs 30 lacs 0.50 % on loan amount Min Rs 5000.00 + Service tax For loan above Rs 30 lacs 0.40 % on loan amount (Min. Rs 15000.00 + Service tax & Maximum Rs 50000.00 + ST ) Normal processing charges for takeover of loans from other banks / financial institutions @ 0.10 % without any maximum limit (incl. Documentation & Post Inspection charges) Pre Closure Charges: No pre closure charges for part / full payment from own resources. Loan sanctioned on or after 01.12.02 @ 0.50 % of balance outstanding each year of the residual period of loan subject to maximum of 2 %. INSURANCE: The insurance of the house mortgaged to the bank is to be done at the banks cost under Baroda Home Loan Suraksha Bima Policy with National Insurance Company Ltd. Free accidental death insurance of the borrower to National Insurance Company to cover the outstanding loan amount with accrued interest at the banks cost (Insurance cover shall be available to the co-borrowers on payment of additional premium and such premium shall be borne by borrowers themselves) W.e.f. 16.03.2005 Borrower can join Baroda Jeevan Griha Suraksha scheme to cover the outstanding loan amount with accrued interest against the risk of normal death after paying nominal insurance premium once to Life Insurance Corporation of India. However finance is available
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from us for premium payable which is repayable along with EMIs of the Home loan. (wef 16.03.2005) It has been decided by the Bank to include another insurance provider M/S Kotak Mahindra Old Mutual Life Insurance Ltd (Commonly known as Kotak Life Insurance) with a purpose to have an additional option to provide life insurance facility to our Home Loan borrowers (optional and at their cost) at competitive rates to secure our home loans in case of death of the borrower. This scheme is effective on all fresh sanctions / disbursement made on or after 01.01.2010 and not for the loan accounts sanctioned earlier. In case of foreclosure of loan, proportionate excess premium paid shall be refunded by KLI. With a purpose to have an additional option to provide life insurance facility to our Home loan borrowers (optional and at their cost) a tie up arrangement has been made with India First Life Insurance. The cover from India First Life Insurance shall be effective from 01.09.2010 and not for existing loan accounts. The premium amount for obtaining the cover can be financed as part of Home Loan at the request of the borrower and accordingly EMI will be calculated. (In case of foreclosure, excess premium paid shall be refunded by the Insurance co.) HOUSING LOAN TO STAFF UNDER THE SCHEME:
SL. NO. 1. NORMS Maximum Loan Amount: For purchase / construction of housing For purchase of old dwelling unit For purchase of plot For repairs / renovation /extension of house Margin: For purchase / construction of new house. For purchase of old dwelling unit For purchase of plot For repair / renovation /extension of existing house Repayment Period EXISTING Rs 10 lacs No specific limit Rs 3 lacs MODIFIED Rs 25 lacs Rs 10 lacs Rs 5 lacs

2.

20% 30% 35% 25%

20% 20% 20% 20%

3.

Up to 20 year

Up to 25 year or retirement

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OTHER FEATURES: Change of tenor is allowed and upfront charges @ 0.20 % p.a. for the residual period of loan under new repayment schedule. Free Credit Cards No Card Up to Rs 2 lacs Silver Loan limit of Rs 2 lacs to Rs 5 lacs Exclusive Above Rs 5 lacs & up to Rs 10 lacs Gold Above Rs 10 lacs Additional Assured Advance (AAA) maximum 5 times up to 90 % (minimum Rs25000/-) of Principal amount repaid 0.50 % discount in interest rate to housing loan borrowers if availing loan facility under banks scheme viz. Baroda Loan for Consumer Durables. Option to change interest from fixed rate to floating rate. Upfront payment of charges on outstanding balance @ 0.50 % for every year for the residual period of the loan maximum 2 % of the amount outstanding on the date of allowing conversion. Housing Loan for second house can also be given. Bank has provided on line submission of loan application facility to the applicants w.e.f. 20th July, 2008 and the applicants so received are to be disposed off with 48 hours. URL for online application is http://www.bankofbaroda.co.in/ohla2009. Loan can be parked at any branch convenient to the borrower. For determining total cost of the house, the cost of car parking place / area located in the same building / compound / society can be considered. However, it should be noted that such car parking area should be specific, identifiable and incorporated in the sale agreement / allotment letter. Concession of 25 bps in interest rate available to the employee borrowers of preferred organization and to the group of borrowers has been withdrawn wef 11.08.2010. It has been decided by our Bank to levy the charges for deviations (financial/ non financial) @ Rs 1500/- per deviation with maximum of Rs 5,000/-. Following accounts should be classified and reported under Priority Sector

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ADVANCES: All Direct Housing Loans to individuals for purchase / construction of a dwelling unit per family, excluding loans granted by banks to their own employees, up to Rs 25 lacs irrespective of the location of the house. Loans for repairs to damaged houses Up to Rs 1.00 lac in rural and semi urban and up to Rs 2.00 lac in Urban and metropolitan areas. However, loans sanctioned in excess of limits stated above shall not be considered as part of Priority Sector Advances for classification purposes. CHECK LIST: 1. Application form duly filled 2. Pan Card Copy and ID 3. 2 Passport size photos (For applicants & Guarantors) 4. 3 months latest salary slips with sign and seal from employer 5. Statement of 6 months operative bank accounts and salary account statement. 6. Xerox copy of LIC / Insurance policies 7. Xerox copy of Passport 8. Other Bank loan details / statement 9. Three year IT returns and Form 16 issued by employer 10. If applicant is a businessman 3 years of IT returns with financials statement duly audited 11. Property papers and complete chain of previous title deeds 12. Latest tax paid receipt 13. Non Encumbrance Certificate for 30 years, if allotted by Development Authority, updates Non Encumbrance Certificate from the date of allotment 14. Sale agreement / Construction agreement 15. Approved plan copy.

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16. If construction is to be undertaking detailed estimate from the engineer 17. Sale deed Registration should be as per sale Agreement value. 18. Mortgage charges as applicable in the particular state 19. Cheque for appropriate amount favouring Bank of Baroda for legal and valuation etc. charges (upfront) 20. Additional Documents for Takeover of Housing Loans from Present Bank: (a) Fore closure letter (b) Copy of sanction letter for Housing Loan (c) Statement of Housing Loan from the beginning (d) List of Documents / Details of Title Deeds held with the present bank

BARODA HOME LOAN TO NRIs /PIOs / Overseas Citizen of India (OCI) PURPOSE: Purchase of new residential house / flat Construction of new dwelling unit Purchase of old dwelling unit ( not more than 15 years old ) Purchase of plot of land, subject to the condition that a house will be Constructed thereon within -3- years from the date of purchase of plot. Repayment of loan already availed from any other Bank / HFC For repair / renovation / extension of existing house For purchasing / constructing second house / flat for the purpose of self occupation. Loan shall be considered for residential properties situated in India only.

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ELIGIBILITY: Non Resident Indians (NRIs) holding Indian passport or Persons of Indian origin (PIOs) holding foreign passport, singly or jointly. For this purpose person of Indian Origin means an individual (not being a citizen of Pakistan or Bangladesh or Sri Lanka or Afghanistan or China or Iran or Nepal or Bhutan ) if He at any time held Indian Passport or He or either of his parents or any of his grandparents was a citizen of India by virtue of the constitution of India or the Citizenship Act 1955, or The person is a spouse of an Indian citizen or a person referred to in sub clause (a) or (b) above. Principal applicant should be having a regular job abroad in a reputed Indian/ foreign company, organization or government department holding a valid job contract / work permit for the minimum past 2 years, Must be employed / self-employed or having a business unit and staying abroad at least for 2 years. Must have minimum gross annual income equivalent to ` 5 lacs per annum. An OCI has to be necessarily a PIO first and registered as OCI under section 7 A of the Citizenship Act 1955. A foreign national, who was eligible to become citizen of India on 26.01.1950 or was a citizen of India on or at any time after 26.01.1950 or belonged to a territory that became a part of India after 15.08.1947 and his / her children and grand children, provided his / her country of citizenship allows dual citizenship in some form or other under the local laws, is eligible for registration as Overseas Citizen of India (OCI). Minor children of such person are also eligible for OCI. However, if the applicant had ever been a citizen of Pakistan or Bangladesh, he / she will NOT be eligible for OCI. AGE: Minimum age must be 21 years. However, the minimum age of coborrower can be 18 years. Age of the borrower plus repayment period should not be beyond retirement age or 65 years whichever is earlier.

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LIMIT & MARGIN: For determining total cost of the house, the cost of car parking place / area located in the same building / compound / society can be considered. However, it should be noted that such car parking area should be specific, identifiable and incorporated in the sale agreement / allotment letter. PARTICCULAR Purchase new/ old house /construction For repairs/renovation/extensions For Purchase of plot of land Margin: For purchase new / old/const purchase of plot For repairs/renovations/extensions in existing house MINIMUM Rs 5lacs Rs 1 lacs 20% 20% 20% cost MAXIMUM Rs 100 lacs Rs 25 lacs Rs 50 lacs project -

of

The above is the maximum amount of loan. However, the actual quantum of loan should be arrived at after considering the income criteria, repaying capacity & margin.

INCOME CRITERA: The maximum amount of loan should not exceed the following : In case of salaried persons -48- times of monthly income. Income may include incentive, commission / bonus etc. paid by the employer during the period. In case of others viz. professionals /self-employed / business persons etc. four times of average (last two years) annual income. Wherever income of the family members is clubbed, they should be made co-borrowers. Branch should obtain overseas bank account statement maintained by the applicant and analyze the same properly to ascertain the conduct of account and also to judge applicants other liabilities, repaying capacity etc.
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 In case the applicant is not maintaining his NRE account with us, branch should obtain statement of such account maintained by the applicant with other bank in India. REPAYING CAPACITY: The loan amount will be determined by assessing the repaying capacity of the applicant with reference to his / her income and other factors such as the profile of the employer, stability of his /her business, number of dependents, credit history and the position of his assets and liabilities. Total deductions including proposed EMI should not exceed 60 % of the gross income of the borrower. For enhancing the repaying capacity, earning of spouse can be combined if the spouse joins as co-borrower even if the spouse is not the co-owner of the property. SECURITY: Equitable / legal mortgage of property constructed / purchased or property to be renovated / repaired Personal guarantee of spouse / family member residing in India shall be obtained. If spouse is also residing abroad personal guarantee of one / two persons resident in India having adequate worth. REPAYMENT PERIOD: Maximum 15 years including moratorium Moratorium Period For const. of new house 1 month after completion of the house or maximum period 12 months from first disbursement. For purchase of new / old house/flat one month after taking possession subject to max. 3 months from first disbursement. In case of repairs / renovation / extension one month after completion of the work sub to max. Moratorium up to 6 month Payment should be remitted from abroad through normal banking channels or out of funds in NRE / NRO account of the borrower are to be obtained. Close relatives of the borrower in India may also repay the instalments of such loans, interest and other charges, if any, through their bank account directly to the borrowers loan account.
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PROCESSING / OTHER CHARGES: Up to Rs 30 lacs 0.50 % Minimum Rs 5000.00 + ST Above Rs 30 lacs 0.40 % Minimum Rs 15000/- & Maximum Rs 50000.00 + Service Tax As a value proposition Bank provides free property and personal accident insurance cover to the housing borrowers, premium shall be borne by the bank. No prepayment / fore closure charges if the amount is partly or fully repaid from own resources by the borrower/s. Takeover of the A/C by other Bank / HFCs 0.10 % of balance outstanding for each year of the residual period of housing loan with no maximum.

INSURANCE: The house / flat acquired with Bank Loan should be insured with Bank Clause. As a value proposition the insurance premium will be borne by the Bank. Procedural details are similar to that of housing loan scheme for resident Indians. CONVERSION FROM FIXED RATE TO FLUCTUATING INTEREST RATE: Request from customers may be considered for allowing conversion for allowing conversion from fixed interest rate to fluctuating interest rate option with prospective effect subject to the following : If the account is regular As one time offer from the bank Upfront payment of charges on outstanding balance @ 0.50 % for every year for the residual period of the loan maximum 2 % of the amount outstanding on the date of allowing conversion.

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CHANGES IN STATUS OF THE BORROWER: In case of change in status of the borrower during the tenure of the loan, the repayment schedule may be reworked-out keeping in view his revised status / income / repaying capacity, age etc. The rate of interest shall also be refixed depending upon total tenure of the loan, as applicable to Housing Loans of Indian residents and effective on date of conversion. For this purpose tenure shall be computed from the date of first disbursement to the date of last instalment. Such revised rate of interest shall be applicable prospectively on the outstanding balance in the account. EXECUTION OF DOCUMENTS POWER OF ATTORNEY: The POA to be executed abroad shall be attested by the office of embassy of the concerned country. On receipt of duly executed POA in India the same is required to be adequately stamped within 90 days from the date of receipt in India and same should be got registered with the Registrar of Assurances to make it enforceable till its revocation. The POA holder after fulfilling following conditions may be allowed to execute the documents: Matter should be referred to Zonal Office along with copy of POA for examination and authority to get the documents executed by the POA. Letter of confirmation from the Donor of POA to be obtained that power given by him / her is valid and has not been revoked as on date. ADDITIONAL ASSURED ADVANCE (RESIDENT / NRIs / PIOs) PURPOSE: Any purpose excluding speculative or illegal purpose.

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ELIGIBILITY: All existing housing loan customers, whose conduct of the account are good and the account is classified as Standard. There is no adverse feature / Auditors / Inspecting Officers remarks in existing Housing Loan A/Cs. Facility available to an A/C taken over from other bank / HFCs. Age of the borrower + tenure of AAA loan should not exceed 65 years. Loan can be availed maximum 5 times during the tenure of housing loan provided previous AAA account is settled. LIMIT & MARGIN: Minimum - Rs 25000/ Maximum Amount equal to 90 % of principal amount repaid Margin 10 % of the principal amount repaid. OTHER CHARGES: Up to Rs 30 lacs 0.50 % Minimum Rs 5000.00 + ST Above Rs 30 lacs 0.40 % Minimum Rs 15000/- & Maximum Rs 50000.00 + Service Tax NOTE: Rate prevailing on the date of sanction will remain fixed for the entire duration of the loan. REPAYMENT: By Equated Monthly Instalments (EMI). First instalment to fall due one month after first disbursement. Repayment Period as per borrower capacity to repay however in any case not to exceed remaining period of housing loan. In case of foreclosure of housing loan the repayment of AAA loan is to be rescheduled in such a way that the loan (AAA) is liquidated maximum within a period not exceeding four years. SECURITY: Extension of equitable mortgage of the housing loan. Personal guarantee of third party if the same is mentioned in Housing Loan

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 Valuation of Property should be less than one year and Value of Property should cover both Housing Loan and AAA. DEVIATION: It has been decided by our Bank to levy the charges for deviations ( financial/ non financial ) @ Rs 3000/- per deviation with maximum of Rs 10,000/-.

BARODA HOME IMPROVEMENT LOAN PURPOSE: For repair / renovation / improvement / extension of existing house. Purchase of furniture / fixture / furnishing / other gadgets. (Only to those borrowers who obtains loans for repairs / renovation under the scheme.) ELIGIBILITY: All individuals singly or jointly owing a dwelling unit in their names. Minimum age 21 years. Maximum age of the borrower + repayment period should not be beyond retirement for salaried person and 65 years in case of others. HUF & Staff members are not eligible. LIMIT: Upper ceiling limit Rs 10.00 lacs with the provision that the loan component for furniture / fixture / fittings / other gadgets should not exceed Rs 5.00 lacs, subject to followings :a. Salaried Persons b. Businessman / self employed / Professional 2 Times of Gross Annual Income 3 Times of net average (last 3 years) annual income plus depreciation claim as individual capacity not by the business unit

Total deduction including repayments under various existing loans and EMI for the proposed loan should not exceed 60 % on the Income.

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MARGIN: 25 % of Project Cost which includes: Estimated cost of repairing / renovation / extension Cost of furniture / fixture / furnishing / other gadgets Stamp duty payable for creation of equitable mortgage Maximum 5 % reduction in margin for group borrowers

OTHER CHARGES: Processing Charges: 0.50 % + ST of loan amount once at the time of sanction. No Charges for part / full payment from own resources. Penalty @ 1 % on Prepayment Amount (including any such amount prepaid in last financial year) DOCUMNTATION CHARGES: LOAN LIMIT Up to Rs 25,000/Above Rs 25,000/- and up to Rs 2 lacs Above Rs 2 lakhs and up to Rs 5 lacs Above Rs 5 lakhs and up to Rs 10 lacs REPAYMENT: Maximum 10 Years (including Moratorium Period). Moratorium Period Maximum 6 Months SECURITY: Equitable Mortgage of Property to be repaired / renovated. Wherever customer desires that the mortgage need not be insisted upon, the branch may as a special case accept at its discretion, security of adequate value (10% higher than the loan sanctioned) in the form of LIC Policies, NSCs etc. CHARGES ( S.T. TO BE INCLUDED ) NIL Rs 200/Rs 500/Rs 1,000/-

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OTHER CONDITIONS: Insurance (as per the guidelines of Home Loan Scheme.)of the property is required if the property is mortgaged As in Home Loam Scheme penalty @ 1% for prepayment of account on amount prepaid including any amount paid in the last financial year is to be charged. No penalty is payable on part prepayment. Guidelines for issuing credit card are similar to Home Loan Scheme. It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 1500/- per deviation with maximum of Rs 5,000/-. BARODA MORTGAGE LOAN Presently under Mortgage backed facilities for various purposes other than Baroda Traders Loan and Loan to Doctors, our bank is having four products viz. Baroda Advance Against Property, Baroda Loan to Professionals, Baroda Loan against Property to NRIs /PIOs and Baroda Marriage Loan ( Since withdrawn w.e.f.01.04.09 ) which are all secured by Mortgage of Immovable Property.

To realign these products w.e.f. 01.04.2009 there shall be only one product for these purposes named as Baroda Mortgage Loan. PURPOSE: For any legitimate purpose except for speculations. TYPE OF FACILITY: Overdraft with reduction of limit in a phased manner. Term Loan ELIGIBILITY: Salaried Employees / Professional, Self Employed & Others who are income tax assessee for last 3 years. Age: Minimum: 21 years. Maximum : 60 years The Customer age + Overdraft / Loan tenure should not exceed 65 years. Minimum gross annual income : Rs 60,000/-

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LIMIT: (Subject to income criteria, repayment capacity & advance valu of security offered) Minimum Maximum Rural Branches All other branches : Rs 1.00 lac : _________ : Rs 5 lacs : Rs 100 lacs

(Subject to income criteria, repayment capacity and advance value of the property offered as security the value of immovable property to be considered for calculating the margin should be Market value or the Distress sale value, whichever is lower) For loan to Professionals maximum limit shall be Rs 25 lacs. INCOME CRITERIA: Salaried Class : 30 times of Gross monthly income Others : 3 times of average ( last 3 years ) annual income Income of all joint owners of the property who are co-borrowers can be clubbed. For agriculturists income certificate from appropriate revenue authority to be obtained Future income is not to be considered. Co-borrower: The facility can be considered to an earning member /members of a family against the property standing in the name of any member / members of the family. Members of family will comprise of spouse, father, mother, son/s, brother/s and brothers wives and daughter/s (subject to the condition that they are living in the family jointly, this is to be ascertained through interview of the applicants). In case of Loan to Professionals 20% of Average annual Business Turnover / Professional receipt. REPAYMENT CAPACITY: The income of the spouse may be considered for repayment also if he / she are a co-borrower. Total deductions should not exceed 60% of the gross income (including installment / repayments towards proposed facility).

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MARGIN: 50 % of the market value or the distress sale value, (whichever is lower) of the immovable property proposed to secure the advance. (w.e.f. 01.06.09) It has been decided by the Bank to allow a time of two years i.e. up to May 31, 2011 for applicability of revised margin norms of 50% on all existing accounts as on May 31,2009 only in cases where : Account is performing, conduct of account is satisfactory and business activity is being carried out properly. There is satisfactory turnover in the account. The account has not shown any signal of stress. Interest is being serviced regularly. In all other cases, where above conditions are not complied with, revised norms have to be applied immediately at the time of due date of next review or within one year, whichever is earlier. SECURITY: Equitable mortgage of Un-encumbered residential or commercial property in the name of the applicant/s. Loan / Overdraft against Tenanted property should not be considered except in case where the property is given on lease to PSU, Reputed Govt. / Semi Govt. Enterprises, Large Corporate, Banks, Financial Institutions & Insurance companies. Equitable mortgage of Plot of land allotted / purchased from any Development Authority. [The allotment / sale of plot / land by such development authorities should not contain any clause stipulating fixed time limit for construction of house / commercial building. THIRD PARTY GUARANTEE: Up to Rs 10 Lacs Guarantee may not be insisted upon Over Rs 10 Lacs Third party guarantee of an individual having adequate worth.

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REPAYMENT PERIOD: Overdraft: Maximum 10 years (Methodology would be as under) Reduction in operative limit proportionately (Minimum 10 % by end of each year, synchronizing with review of the account). Interest to be recovered separately as & when applied in the account. [Facility may be continued without reduction, subject to the condition that minimum annual turnover in account is at least 25 % of the limit sanctioned and conduct of the account is satisfactory] Loan: Maximum 84 months in equal monthly installments (EMI) Maximum moratorium 3 months Interest to be recovered separately as & when applied in the account during moratorium period. For Agriculturists to be fixed as annual / half yearly repayment for principal and interest considering the harvesting pattern and / or other sources of income. PERIOD OF FACILITY: 12 months subject to annual review. At the time of review the limit is to be reduced as per repayment schedule. PROCESSING & OTHER CHARGES: LOAN 1 % of loan amount subject to : Minimum: Rs 1000/- + ST Maximum: Rs 50000/- + ST OVERDRAFT 0.35 % of loan amount Minimum: Rs 1000/- + ST Maximum: Rs 25000/- + ST Commitment charges @ 0.50 % p.a. in case of OD under the scheme where limit is Rs 500 lacs & above and average quarterly utilization is <75 % [BCC/BR/100/154 dated 06.06.2008]

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VALUATION OF PROPERTY: For property acquired within 5 years of sanction of loan, amount of registered sale deed may be taken as valuation. In other cases, the valuation of property should be done by our Banks approved valuer or Government approved valuer as per extant guidelines at the time of considering the facility. The age of building should not exceed 25 years. Building more than 25 years old may be accepted as security, subject to approval of Regional Head, who will ascertain structural soundness of the building by obtaining opinion and certificate from approved engineer, about structural soundness of the building and its residual life. The residual life of the building should be at least 5 years more than the term of the loan /overdraft. INSURANCE: Insurance of the property mortgaged ( cost be borne by borrower ) for full value excluding : Cost of Land in case of constructed property The plot of Land LENDING POWERS: Sanctioning authorities up to Grade / Scale III are authorized to sanction facilities up to Rs 25 lacs and Authorities under SMG/S IV are authorized to exercise normal DLPs for sanction of limits under the scheme. In order to have a check on the quality of financing now the branches w.e.f. 17 August, 2009 will have to seek prior activity clearance from their controlling authorities before considering any new or review with increase proposal as under : Regional Head - For Term Loan Limits up to Rs 10 lacs Zonal Head - For Term Loan Limits of more than Rs 10 lacs Zonal Head - For overdraft Limits irrespective of amount (Fresh as well as with increase)

FREE CREDIT CARD: Above Rs 2 lacs and up to Rs 5 lacs Paras International Above Rs 5 lacs Exclusive

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MAIN DOCUMENTS REQUIRED TO BE SUBMITTED BY THE APPLICANT: I.T Returns for past 3 years In case the overdraft amount exceeds Rs 5 lacs copy of Latest Income Tax Assessment Order. Form No 16 along with salary certificate from the Employer. Original title deeds of the property offered for mortgage Latest maintenance, Water Tax, Municipal Tax and any other such taxes paid receipt. Non encumbrance letter from Co-op Society. Permission to create Equitable Mortgage from society. Confirmation of society that Banks lien on society records is noted. Last 6 months statement of accounts of Main Bank account in case main account is not with the Branch. LEGAL OPINION ABOUT TITLE DEEDS: Legal opinion to be obtained from Banks approved advocate. Actual Legal fees to be borne by the borrower. However, Branches may negotiate with the local empanelled advocates to contain the fee to a maximum of ` 300/- per case. TAKE OVER OF MORTGAGE LOAN ACCOUNTS FROM OTHER BANKS: Mortgage loan taken from other banks / financial institutions can be taken over by following the extant guidelines in respect of takeover of borrowal accounts OTHER CONDITIONS: Penal interest 2 % p.a. on overdue amount Legal opinion to be obtained from Banks approved advocate Actual Legal fees to be borne by the borrower. No penalty for pre mature payment With a view to take care of the periodical reduction in the operative limit, following clause be added in the loan application and sanction letter in case of overdraft facility

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The Bank shall have the right to progressively reduce the limit of overdraft sanctioned hereby every year / month from time to time during the availment of the OD limit. However, it is agreed and understood that such commitment for progressive reduction in the overdraft limit is and will be without prejudice to the right of the Bank to call for accelerate and demand repayment of entire outstanding amount in overdraft limit at any time and from time to time. It has been decided by our Bank to levy the charges for deviations (financial/ non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-.

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BARODA TRADERS LOAN

PURPOSE: working capital requirement Development of shop (e.g. purchase of equipment, P.C., air-conditioner, furniture etc. and not for purchase of shop) for need based requirements subject to a maximum of 25 % of the working capital limit sanctioned. Working capital advance & shop development loan together should not exceed Advance Value of collateral security or Rs 200 lacs (whichever is less). Non fund based facilities (i.e. Bank Guarantee and Letter of Credit etc.) ELIGIBILITY: Individuals, Proprietorship, Partnership concerns, Firms, Private Ltd. Cos. and Regd. Co-op societies engaged in trade of any commodity / goods required by the community and trading in them is not prohibited by law or opposed to public interest. The business units should have been established in the line of business for a minimum period of 2 year Trading units established by our existing customers with satisfactory dealings of their close relatives, even if these are established for less than 2 years. Trading units of non customers having less than 2 years establishment, with the prior approval of Regional authority. LIMIT & MARGIN: Minimum : Rs 25,000/- & Maximum : Rs 200 lacs Advance value of collateral security with margin : 10 % on FDR 15 % on surrender value of LIC policies, NSCs and Govt. Bonds 50 % on approved shares / bonds 40 % on realizable market value of immovable property ( w.e.f. 16.12.2009 ) OR 20 % of projected sales ( whichever is less )

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PROCESSING & SERVICE CHARGES: Fund based @ 0.35 % Minimum Rs 1000/- & No Maximum + service tax. Non Fund based As per extant guidelines Commitment charges @ 0.50 % p.a. in case of OD under the scheme where limit is ` 500 lacs & above and average quarterly utilization is < 75%[BCC/BR/100/154 dated 06.06.2008] REPAYMENT: Overdraft: 12 months subject to annual review. Demand Loan : Maximum 60 EMI ( depending on repayment capacity )

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BARODA EDUCATION LOAN

As we are aware that our Bank was having different products related to Education Loan. These Loan Schemes vide Banks Circular no. BCC: BR: 101:93 dated 28.03.2009 have been realigned for operational convenience under the name BARODA EDUCATION LOAN as below: 1. Baroda Education Loan ( Baroda Vidya / Gyan / Scholar ) 2. Baroda Loan For Career Development 3. Baroda Loan for Skill Dev. of Construction Workers For the convenience of the readers the salient features of the schemes as mentioned above are detailed separately as under: BARODA VIDYA TARGET GROUP: Parents of students pursuing school education from Nursery to Standard XII. ELIGIBILITY: Should be an Indian national residing in India. Student should have secured admission to a Recognized institution for any of the following courses : Stage I: Nursery to V the STD. Stage II: VI the to VIII the STD Stage III: IX the to XII the STD. Evening courses of institutes approved by State / Central Govt. No minimum qualifying marks Loan to be granted in the name of father / mother of the student. COVERAGE OF EXPENSES FOR: Fee payable to college / school. Examination / Library / Laboratory fee Fee and other charges payable to hostel. Purchase of books / equipments/ instruments / uniforms. Personal computers / Laptops / wherever required. Caution deposit / building fund / refundable deposit supported by institution bills / receipts. [Cost of External Coaching / Tuition is Not to be Considered]

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QUANTUM OF FINANCE: Ned based finance subject to repaying capacity of parents Maximum Rs 4.00 Lacs (with yearly sub limits) Loan for the next stage can be considered even though loan sanctioned earlier for previous stage is outstanding provided conduct of the same is satisfactory MARGIN: - NIL

REPAYMENT PERIOD: Yearly sub limit is repayable in 12 equal monthly installments Repayment to start 12 months after first disbursement of each years loan amount. REPAYMENT CAPACITY: Total deductions including the proposed EMI should not exceed 60 % of total income. The income of spouse, wherever spouse is working also to be considered. PROCESSING & DOCUMENTATION CHARGES: -NIL FINANCING BRANCH: Loan may also be considered at the place of posting / service of parents or which is in close proximity to the permanent residence of parents. SECURITY: No security. In case the loan is given for purchase of computer or for creation of any other asset the same is to be hypothecated to the Bank.

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DISBURSEMENT: Directly to school / institution / hostel term / year wise or to bookseller / shop for purchase of books / instruments / equipments. Next years disbursement to be made only after student has passed the current year annual examination & progress report / mark sheet is kept on record. OTHER CONDITIONS: A stamped declaration / an affidavit confirming that no Educational loan is availed from other banks / institutions. No dues certificate need not be insisted upon 1 % concession in rate of interest to loans sanctioned on or after 1.11.2004 for the benefit of Girl student. REPHASEMENT: The rephasement of repayment in genuine cases is considered by the next higher authority. CLASSIFICATION OF ADVANCE: Priority Sector OTHER CONDITIONS: Simple interest to be charged at monthly rest during moratorium period. Penal interest @ 2 % on overdue amount if the loan amount exceeds Rs 2 lacs. 1% concession in rate of interest to loans sanctioned on or after 1.11.2004 for the benefit of girl student. No documentation & processing charges. No exchange on Drafts issued in favour of school or student. A stamped declaration / an affidavit confirming that no Educational loan is availed from other banks/ institutions for the child for whom loan is sanctioned by us and shall not avail educational loan from any other bank without obtaining NOC from our bank during the pendency of our educational loan. No dues certificate need not be insisted upon. Bank has provided on line submission of loan application facility to the applicants w.e.f. 08th February, 2008 and the applicants so received are to be disposed off with 48 hours. URL for online application is http://www.bankofbaroda.co.in/oela2009

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BARODA GYAN TARGET GROUP: Students pursuing Graduation, Post graduation, Professional, Teachers Training Course, Nursing Course, B.Ed. & other courses in India. ( provided these courses are degree / diploma courses and not certificate Courses ) COURSES ELIGIBLE: Graduation / Post Graduation / Professional courses and courses like ICWA, CA, CFA etc. as well as courses conducted by IIM, IIT, IISc, XLRI, NIFT etc. Evening courses of approved institutes. Other courses leading to diploma / degree etc. conducted by colleges /universities approved by UGC / Govt. / AICTE / AIBMS / ICMR etc. Teachers Training Course, Nursing Course, B.Ed. etc. STUDENT ELIGIBILITY: Should be Resident Indian. Secured admission to professional / technical courses in India through Entrance Test / Merit Based selection process. COVERAGE OF EXPENSES: Fee payable to College/Institution/University e.g. Exam, Library or Laboratory fee etc Purchase of books / equipments / instruments / uniforms / Computers = Laptop etc. Caution deposit, building fund, refundable deposit supported by institution bills etc Other expenses required to complete the course study tours, project works, thesis etc [Cost of External Coaching / Tuition is Not to Be Considered]

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QUANTUM OF FINANCE: Need based finance subject to repayment capacity of parent / student, based on the expected income to be generated after completion of the course. Maximum Rs 10.00 lacs MARGIN: Up to Rs 4.00 lacs : NIL Above Rs 4.00 lacs : 5 % Scholarship / assistantship if any received to be included in the margin Margin may be brought in on year to year basis as and when disbursements are made on a pro rata basis

PROCESSING & DOCUMENTATION CHARGES: NIL REPAYMENT & MORATORIUM PERIOD: Course period + 1 year or 6 months after getting job, whichever is earlier. The loan is repayable in 5 7 years after the above period. Extension of time to complete the course may be permitted for a maximum period of 2 years and in such case the moratorium period will extend accordingly. The accrued interest during moratorium period to be added to the principal for fixing the Equated Monthly Installment (EMI) for repayment of the loan amount. FINANCING BRANCH: Loans up to Rs 4.00 lacs: Loan may also be considered at the place of posting / service of the parent after obtaining and recording the proof of permanent residence for future reference. Loans above Rs 4.00 lacs: Loans may also be considered at the place of posting / service of the parent who is either co-borrower or guarantor of the loan as the case may be, after obtaining and recording the proof of permanent residence for future reference.

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SECURITY: Up to Rs 4.00 lacs No Security Above Rs 4.00 lacs & up to Rs 7.50 lacs Third Party guarantee along with assignment of future income. Above Rs 7.50 lacs - Collateral and third Party guarantee along with assignment of future income. The Loan documents to be executed by both student and parent /guardian. The Regional Head may, at its discretion, waive third party guarantee. DISBURSEMENT: Directly to school / institution / hostel term wise / year wise, in stages. Directly to book seller / shop for purchase of books, instruments, equipments etc. Next year disbursement to be made only after student has passed the current year annual examination & progress report / mark sheet to that effect is produced. In case student does not secure hostel facility with educational institute, he may be allowed to make his own arrangement if required. Fees of lodging / boarding in such cases to be paid directly to concerned establishment REIMBURSEMENT: The fee etc. paid by the student in first year from own resources may be reimbursed after obtaining necessary proof of payment. In genuine cases, expenses for purchase of books etc. may be reimbursed after obtaining necessary proof of purchase and payment.

DETAILS OF EXPENSES: The details of expenses for the entire course period to be obtained from college / institutions. PROGRESS REPORT: Progress report to be obtained at regular intervals & be kept on record.

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FREEBIES: Debit card to the student on his account. CLASSIFICATION OF ADVANCE: Priority Sector

ADDITIONAL LOAN / ENHANCEMENT IN LIMIT: Loan for higher studies in India under Baroda Gyan can be considered even though loan sanctioned earlier under Baroda Vidya is outstanding; subject to repaying capacity and provided conduct of the loan account for previous stage is satisfactory. In this case, the holiday for repayment granted initially, will stand extended further as per the duration of the course. REPHASEMENT: The rephasement of repayment in genuine cases be considered by the next higher authorities. INSURANCE: W.e.f. 01.12.2008 Bank entered in tie up arrangement with Kotak Life Insurance for all fresh sanctions / disbursement made to Education Loan Borrowers to provide life insurance cover to them. Family of the borrower is not required to repay the loan in case of death of student borrower and outstanding cover amount due, will be paid by Insurance provider (KLI) as per cover schedule. Thus slippage of the account into NPA category due to death of the borrower can be avoided. Life cover is available against payment of one time premium and amount of premium is based on the amount and tenure of the loan which may be financed by bank repayable in EMI along with EMI of Education Loan. In case of foreclosure of loan, proportionate excess premium paid shall be refunded by KLI. The insurance cover will generally be available to educational loan borrowers to the maximum extent of loan amount sanctioned as under : For study in India : Rs 10 lacs For Study abroad : Rs 20 lacs

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 Maximum : Rs 50 lacs Premium is to be deposited in CBS A/C of KLI simultaneously, if the branch is in CBS operation and if branch is under BIBAS, premium may be deposited by raising I schedule on nearer CBS branch for credit in the said A/C.

OTHER CONDITIONS: Simple interest to be charged at monthly rest during moratorium period. Penal interest @ 2 % on overdue amount if the loan amount exceeds Rs 4 lacs. 1 % concession in rate of interest to loans sanctioned on or after 1.11.2004 for the benefit of girl student. 1 % interest concession is provided if interest debited during repayment holiday / moratorium is serviced. No documentation & processing charges. No exchange on Drafts issued in favour of school or student. A stamped declaration / an affidavit confirming that no Educational loan is availed from other banks/ institutions. No dues certificate need not be insisted upon. Bank has provided on line submission of loan application facility to the applicants w.e.f. 08th July, 2008 and the applicants so received are to be disposed off with 48 hours. URL for online application is http://www.bankofbaroda.co.in/oela2009. BARODA SCHOLAR TARGET GROUP: Students going abroad for Professional / Technical studies. ELIGIBILITY OF COURSES: Graduation: Job oriented professional / technical courses of reputed universities. Post Graduation: MCA, MBA, MS. Etc. Courses conducted by CIMA London, CPA in USA etc.

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STUDENT ELIGIBILITY: Should be an Indian National Secured admission to Professional / technical courses abroad through Entrance Test / Merit Based Selection Process.

COVERAGE OF EXPENSES: Admission / Tuition Fees to College / University & Hostel / Mess charges. Examination/Library/Laboratory Fee/Purchase of Books /equipments / uniform etc. Caution deposit / building fund / refundable deposit supported by institution bills / receipts. One way Travel expenses / passage money Purchase of computers if essential for completion of the course. Any other expense required to complete the course e.g. study tour, project work, thesis etc. QUANTUM OF FINANCE: Need based finance maximum of Rs 20.00 lacs. MARGIN: Up to Rs 4.00 lacs : Nil Above Rs 4.00 lacs : 15 % Margin may be brought-in on year-to-year basis as and when disbursements are made on a pro rata basis. REPAYMENT HOLIDAY / MORATORIUM PERIOD: Course period + 1 year or 6 months after getting job, whichever is earlier.

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REPAYMENT PERIOD: The loan is repayable in 5 7 years after the moratorium period If the student is not able to complete the course within the scheduled time for completion of course may be permitted for a maximum period of 2 years. In case of above extension, moratorium period will be extended accordingly. If the student is not able to complete the course for reasons beyond his control, sanctioning authority may at his discretion consider such extensions as may be deemed necessary to complete the course. The accrued interest during the repayment holiday period to be added to the principal and repayment in Equated Monthly Installments (EMI) be fixed. FINANCING BRANCH: Loans up to Rs 4.00 lacs: Loan may also be considered at the place of posting / service of the parent after obtaining and recording the proof of permanent residence for future reference. Loans above Rs 4.00 lacs: Loans may also be considered at the place of posting / service of the parent who is either co-borrower or guarantor of the loan as the case may be, after obtaining and recording the proof of permanent residence for future reference. PROCESSING CHARGES: 1 % of the limit sanctioned to be recovered as upfront charges for issuing Capability certificate, which shall be refunded, if applicant avails loan. SECURITY: Up to Rs 4.00 lacs No Security Above Rs 4.00 lacs and up to Rs 7.50 lacs Collateral in the form of a suitable third party guarantee. Above Rs 7.50 lacs Collateral security equal to 100 % of the loan amount or suitable third party guarantee along with the assignment of future income of the student for payment of installments. The Loan documents to be executed by both student and parent / guardian. The Regional Head may, at its discretion, waive third party guarantee.

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 The security can be in the form of land / building / Govt. Securities / Public Sector Bonds / Units of UTI, NSC,KVP,LIC policy, gold, shares / debentures, bank deposit, Relief Bonds etc. standing in the name of student / parent / guardian or any other third party with suitable margin. Margin on securities to be considered as per extant guidelines. Wherever the land / building are already mortgaged, the unencumbered portion can be taken as security on 2nd charge basis provided it covers the required loan amount.

DISBURSEMENT: No application for educational loan received should be rejected without the concurrence of the next higher authority. The loan to be disbursed in stages as per the requirement / demand directly to the institutions / vendors of books /equipments / instruments to the extent possible. PROGRESS REPORT: Progress report to be obtained at regular intervals and be kept on record. INSURANCE: W.e.f. 01.12.2008 Bank entered in tie up arrangement with Kotak Life Insurance for all fresh sanctions / disbursement made to Education Loan Borrowers to provide life insurance cover to them. Family of the borrower is not required to repay the loan in case of death of student borrower and outstanding cover amount due, will be paid by Insurance provider (KLI) as per cover schedule. Thus slippage of the account into NPA category due to death of the borrower can be avoided. Life cover is available against payment of one time premium and amount of premium is based on the amount and tenure of the loan which may be financed by bank repayable in EMI along with EMI of Education Loan. In case of foreclosure of loan, proportionate excess premium paid shall be refunded by KLI. The insurance cover will generally be available to educational loan borrowers to the maximum extent of loan amount sanctioned as under : For study in India : Rs 10 lacs For Study abroad : Rs 20 lacs Maximum : Rs 50 lacs

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 Premium is to be deposited in CBS A/C of KLI simultaneously, if the branch is in CBS operation and if branch is under BIBAS, premium may be deposited by raising I schedule on nearer CBS branch for credit in the said A/C. OTHER CONDITIONS: A stamped declaration / an affidavit confirming that no Educational loan is availed from other bank / institutions for the student for whom loan is sanctioned by us and shall not avail educational loan from any other bank without obtaining NOC from our bank during the pendency of our educational loan be obtained. No dues certificate need not be insisted upon. Penal interest @ 2 % p.a. be charged for loan amount above Rs 4.00 lacs for the overdue amount and period. Simple interest to be charged during the repayment holiday / moratorium period. 1 % interest concession be provided if the interest debited during the repayment holiday is serviced. 1 % concession in rate of interest to loans sanctioned on or after 1.11.2004 for the benefit of girl students. Bank has provided on line submission of loan application facility to the applicants w.e.f. 08th Feb, 2008 and the applicants so received are to be disposed off with 48 hours. URL for online application is http://www.bankofbaroda.co.in/oela2009.

FREEBIES: Drafts in foreign currencies drawn on our branches / subsidiaries required in favour of college / university / student will be issued free of exchange / commission. ADDITIONAL LOAN / ENHANCEMENT IN LIMIT: If the student wants to pursue further education, additional loan enhancement in limit may be considered within the overall ceiling limit. In this case, the holiday for repayment granted initially, will stand extended further as per the duration of the course.

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REPHASEMENT: The rephasement of repayment in genuine cases be considered by the next higher authority.

BARODA AUTO LOAN

As we are aware that our Bank was having different products related to Auto Loan sector. These Loan Schemes vide Banks Circular no. BCC: BR: 101:93 dated 28.03.2009 have been realigned for operational convenience under the name BARODA AUTO LOAN as below: 1) Baroda Car Loan 2) Baroda Car Loan to HNIs / Corporates 3) Baroda Loan for Two Wheelers PURPOSE: For purchase of any new four wheeler, Car, Jeep, Station Wagon etc. and Two Wheeler for private use. For purchase of second hand car / Two Wheeler (not more than 3 years old) TYPE OF FACILITY: Term Loan ELIGIBILITY: Salaried Employees / Directors of private / Public Limited Companies, Proprietors / Partners of Partnership firms and Government Employees / individuals, high salary earners / Businessmen / Professionals, farmers. Prior account relationship not essential. However, statement of account for last six months should be studied to satisfy that the conduct of the account is satisfactory. Minimum age 21 years Maximum age Salaried: Present age + repayment period should not exceed retirement age. Others: Present age + repayment period should not exceed 65 years. Minimum Employment one year / stable business.

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LIMIT & MARGIN: Limit: New Vehicle: For HNIs / Corporate: Rs 15.00 lacs, Rs 100 lacs ( No Minimum )

[HNIs means individuals with minimum monthly salary of Rs 1.25 lacs and carry home salary should be at least 40% ( inclusive of proposed deductions ) whereas Corporate means having minimum tangible net worth of at least 10 times of the loan requested shall be considered under the scheme.] Old Vehicle : Rs 10.00 lacs, Subject to 24 times of gross monthly income for salaried persons 3 times of gross annual income ( average ) for others For Two Wheeler: Rs 1.00 lac or 5 times of gross monthly income whichever is lower subject to repayment capacity. Margin: Loan up to Rs 15.00 lac - 15 % on Road Cost incl. Reg. & Ins. Loan above Rs 15.00 lac - 20% on Road cost including Registration and Insurance. Old Vehicle - 40% Two Wheeler - 10% on invoice value PROCESSING & DOCUMENTATION CHARGES: Car Loans Up to Rs 15.00 lacs - 0.75 % Maximum Rs 10,000/ Limit Over Rs15.00 lacs - 0.50 % of loan amount with a minimum of Rs 10,000/- and No Maximum limit. Two Wheeler 2 % of Loan amount minimum Rs 250/- + ST

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REPAYMENT: New Car 84 EMIs Second Hand Cars 36 EMIs Two Wheeler _ 60 EMIs [12 Post dated cheques are to be obtained in advance every year with undertaking to maintain adequate balance]

SECURITY: Banks charge to be noted with RTO Comprehensive Insurance of vehicle with Bank clause CONCESSION IN RATE OF INTEREST: Concession of 0.50% in rate of interest will be provided to those who offer minimum 50 % of liquid security e.g. NSC, KVP, LIC Policy or Fixed Deposit of our Bank as collateral. Concession of 0.25% in interest rate on car loan is available to all our existing home loan borrowers having a good track record of repayment, without any overdue in a/c. INSURANCE: Comprehensive Insurance of the Vehicle with Banks Clause. In case of second hand car, the existing insurance policy be got transferred to the name of the borrower with banks clause.

TAKE OVER OF LOAN ACCOUNT: Request from the Principal borrower is required. ( No request for take over of account for second hand car is to be entertained ) The car should not be more than 3 years old on the date of take over of loan account. Valuation certificate from approved garage is to be obtained, if car is more than 2 years old. It is to ensure that previous loan account is regular with the existing bank and there is no overdue in the account. (Statement of A/C should be kept on record)

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 To ensure that the other banks lien on the car in RTO records is cancelled and simultaneously our banks name is entered in the books of RTO as financer. Insurance policy, if in force, to be modified and our banks name to be replaced with the previous bank in the Bank Clause of the policy. Disbursement to be made directly to the bank by super scribing the purpose. TIE UP ARRANGEMENT: On 22.11.08 Bank has entered into a tie up arrangement with Maruti Suzuki Ltd. The local dealer will provide seating facility with light, Telephone line etc to the representative of the Bank visiting the show room. A charge may be paid to the dealer not exceeding 1 % of the amount of car finance by the car financing branch to the debit of P/L Sundry Charges A/C. Bank has entered into tie up arrangements with Hundai MOTORS / Tata Motors / Mahindra & Mahindra to give a boost to Auto Loan. Portfolio. OTHER CONDITIONS: Bankers Cheque / DD issued by the bank towards disbursement of car loan should be super scribed Car Loan to Mr. / Mrs. In case of second hand cars, certificate of value and residual life of the car to be obtained from a reputed / approved garage. 12 post dated cheques to be obtained in advance every year, with undertaking to maintain adequate balance. Blank TTO form in duplicate to be obtained. Concession of 0.50 % in rate of interest to those who offer minimum 50 % liquid security e.g. NSC, KVP, FDR, LIC Policy etc. (excluding earmarking of PF balances) as collateral. Additionally a concession of 0.25% to existing Home Loan borrowers having a good track record of repayment. It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-. In case the loan is granted to corporate, the vehicle should be used exclusively by the Directors / Executives of the Company and also not registered as Commercial Vehicle.

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 Maximum deductions including proposed EMI should not exceed 60% of income. The job of installation of CNG / LPG Gas Kit must be done in new / 2nd hand car not more than 5 years old by the authorized dealer only. Bank has provided on line submission of loan application facility to the applicants w.e.f. 09th August, 2010 and the applicants so received are to be disposed off with 48 hours. URL for online application is https://www.bankofbaroda.co.in/oala2010 POWER OF DEVIATION: Powers of Financial Deviations which have a direct impact on Profit & Loss A/C of Bank shall not be exercised below the level of BCC. However non financial deviations may be considered as per powers delegated. CHECK LIST: 1. Application form duly filled and signed by prospective borrower 2. Two Passport size photograph 3. Quotation for Car from an authorized dealer 4. Photocopy of PAN Card 5. Personal Identification Proof: Photo Identity Card issued by present employer Electoral I Card Passport PAN Card 6. Residential Address Proof: Electricity Bill Telephone Bill ( Land Line ) Electoral I Card Passport 7. Latest Salary slips for the last 3 months with break up and duly attested by the employer and countersigned by the applicant 8. For Salaried Class: Income Tax Returns along with Form No 16 for last two years 9. For Others: Income Tax Returns for last two years along with assessment orders 10. Bank A/C Statement for last 6 months and details of existing loan A/C, if any,

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BARODA PERSONAL LOAN

As we are aware that our Product Baroda Personal Loan is a clean advance from security angle. Few other products viz. Baroda Vaibhav Laxmi, Loan to Pensioners, Loan to Defence Pensioner, Loan against Earnest Money Deposit, Loan for Consumer Durables and Loan for Laptop / PCs and Baroda Desh Videsh Yatra Scheme are almost of same nature with little difference. These Loan Schemes vide Banks Circular no. BCC: BR: 101:93 dated 28.03.2009 have been realigned for operational convenience under the name BARODA PERSONAL LOAN as below: 1) Baroda Personal Loan 2) Baroda Vaibhav Laxmi 3) Baroda Loan to Pensioners 4) Baroda Loan to Defence Pensioners 5) Baroda Loan for Earnest Money Deposit 6) Baroda Loan for Consumer Durables 7) Baroda Loan for Laptop and PCs 8) Baroda Desh Videsh Yatra Loan ( since withdrawn w.e.f. 01.04.09 ) For the convenience of the readers the salient features of the scheme as mentioned above are detailed as under:

PURPOSE: To meet personal expenses / exigencies related to medical, education, marriage, honeymoon, family / social functions, travel, payment of taxes or any other family needs etc. Any purpose other than speculative.

ELIGIBILITY: Professional, self employed persons, Employees of corporate, Educational Institution, Doctors, Architects, Interior Designers, Engineers, Chartered Accountants, Technical & Management consultants & Practicing Company Secretaries with 1 year stable business. Proprietorship (Proprietors), Partnership Firms (Partners), Existing staff members, Ex-Staff including VRS optees & Non residents are not eligible under the scheme.

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 Permanent employees with minimum 1 year service of Central / State Government / Autonomous Bodies / Public / Joint Sector Undertakings, Reputed Limited Companies / MNCs & Educational Institutions. ( Employees of Proprietorship & Private Limited companies and businessmen are not covered under this scheme ) Minimum 21 years and Age + Repayment period of loan should not exceed retirement age for salaried class and 65 years for self employed. Insurance Agents subject to The agent is doing insurance business minimum for last 5 years. The agent has regular and stable income and maintaining SB account with our Bank for crediting commission cheques received from the insurance co. with a letter from the agent addressed to the insurance co. to send the commission cheques directly to the Bank. Pension Loans are available to Pensioners only. Loan for Earnest Money Deposit is available for Business persons also i.e. proprietors, partners of Partnership firms or Directors of Pvt. Ltd. Co. in addition to above class of persons. LIMIT: Minimum No Limit ( BCC : BR : 101 : 137 dated. 04.05.2009 ) Maximum Category A & B ( as per risk rating ) Rs 2,00,000/ Category C ( as per risk rating ) - Rs 1,00,000/ Category D ( as per risk rating ) - No loan to be sanctioned Subject to: 6 times of Gross monthly income for salaried individuals. 75% of the last years taxable income for self-employed and professionals.

Except the following: Loan to Pensioner: 10 times of monthly pension maximum Rs 1.00 lac, whichever is lower. Loan to Defence Pensioner: 20 times of monthly pension maximum Rs 2.00 lacs, whichever is lower. Loan for Consumer Durables: 5 times of gross monthly income maximum Rs 1.00 lac, whichever is lower.

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 Loan for Laptop / PC: 5 times of gross monthly income max. Rs 1.00 lac, whichever is lower. Loan for Earnest Money Deposit: 8 times of gross monthly income or 90% of application money or maximum Rs 5.00 lacs, whichever is lower.

PROCESSING CHARGES: 2 %, Minimum Rs 500/- & No Maximum + ST

REPAYMENT: Maximum 36 EMIs commencing one month after disbursement except : Loan to defence pensioners : 60 months Loan to Consumer durables : 60 months Loan for Laptop / PCs : 60 months Loan for Earnest Money Deposits : by lump sum payment in 6 months

DOCUMENTATION: D.P.Note / Letter of Installment with acceleration clause / Letter of undertaking from borrower - employer / General Form of Guarantee / Hypothecation of Consumer Goods Laptop purchased out of loan amount, if any / In case of Loan for Earnest Money Deposits power of attorney to collect and adjust refund amount in loan and stamped undertaking to create EM after execution of sale deed. SECURITY: A copy of undertaking from employee (for salaried persons) authorizing the employer to deduct from the salary monthly loan installment and remit the same to the bank for the credit of loan account and also to deduct from the terminal benefits, the outstanding loan amount with interest. A copy of the said undertaking duly acknowledged by the employer has to be kept on branch records. If the employer is not ready to acknowledge the undertaking given by the employee, branch should obtain 12 Post Dated Cheques from customer drawn on his account with prescribed undertaking. Third party guarantee, if possible.

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LENDING POWERS: Where the assets are created out of Bank Loan and no tangible collateral securities are available, DLPs of clean loans shall be exercised by the sanctioning authority.

POWER OF DEVIATION: Powers of Financial Deviations which have a direct impact on Profit & Loss A/C of Bank shall not be exercised below the level of BCC. However non financial deviations may be considered as per powers delegated. OTHER CONDITIONS: Prior account relationship not necessary. However, account statement for last 6 months (account either with our bank or with other bank) to be studied to satisfy that the conduct of account is satisfactory and a note should be made in the proposal. Interest rate prevailing on the date of disbursement of the term loan will be the applicable rate during currency of the loan and will not undergo any change in BPLR from time to time. Penal interest @ 2 % p.a. for nonpayment / delayed payment on overdue amount. In case the borrower is transferred and our bank has a branch at the place where the borrower is transferred, the outstanding loan amount may be transferred to that branch as per the banks extant guidelines for transfer of accounts. It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-. Before sanction of loan for Earnest Money Deposit, branch to ensure that proposed borrower is eligible for financing the Housing Loan project under the Home Loan guidelines for which he is bidding and is also agreeable to avail Housing loan from us. Total deductions should not exceed 60% of gross salary per month except in case of loan for Earnest Money Deposit where home loan guidelines shall apply. Credit rating shall be carried out as per extant guidelines and decisions will be taken accordingly.

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BARODA LOAN TO DOCTORS

PURPOSE: Development of clinic / clinic-cum-residence / Nursing Home / Pathological Laboratory Purchase of medical / diagnostic equipments Setting up of Operation theatre. Purchase of car & ambulance etc. Purchase of office equipments viz. Computers, fax, air-conditioners and furniture etc. Expansion / renovation / modernization of existing premises / clinic / Nursing Home. Working Capital requirement including stock of medicines. ELIGIBILITY: Individuals, Proprietorship, Partnership firms, Private Ltd. Cos. engaged in providing medical science like MBBS, BAMS, BDS or any degree / course in physiotherapy / radiology etc. In case of Pvt. Ltd. Co. the object clause should be verified for having the objective of providing medical services to community. LIMIT: Minimum Rs 50,000/Maximum Rural & Semi Urban - Rs 15 lacs (sub limit for W/C Rs 1 lac) Urban / Metro - Rs 50 lacs (sub limit for W/C Rs 3 lacs) For a loan of Rs 5 lacs & above unit should be having 3 years establishment

MARGIN: Loan up to Rs 5 lacs ( where no collateral is stipulated ) - 25 % All other cases - 15 % Working Capital - NIL PROCESSING CHARGES: 0.35 % of loan amount Maximum Rs 15,000/- + ST

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REPAYMENT: Overdraft ( For Working Capital ) 12 months subject to annual review (For renewal of A/C, declaration of annual income shall be obtained and kept on record. Stock statement to be obtained once in a year last of February every year) Demand Loan / Term Loan Maximum 60 EMIs with 6 month moratorium. (DSCR of 1.25 may be accepted to ensure repayment capacity) SECURITY: Up to Rs 5.00 lacs - NIL Above Rs 5.00 lacs : Tangible collateral securities in the form of mortgage of land ( excluding agriculture land ) and building Pledge of NSCs, Govt. Bonds, Banks FDR, and Assignment of Life insurance policies etc. Securities to be obtained may be in the personal name of borrower, proprietor, partner, director or their close relatives (viz. spouse, parents, brother, sister, son, daughter) who should stand as guarantor / coborrower. SECURITY MARGIN: Immovable Property 40 % NSC / KVP / Govt. Bonds / Ins. Policy - 15 % Banks FDR - 10 %

DOCUMENTATION CHARGES: Up to Rs 50,000/- - NIL Above Rs 50,000/- up to Rs 2 lacs - Rs 100/Above Rs 2 lacs up to Rs 5 lacs - Rs 350/Above Rs 5 lacs up to Rs 20 lacs - Rs 1,000/Above Rs 20 lacs up to Rs 25 lacs - Rs 1500/Above Rs 25 lacs - Rs 3000/-

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OTHER CONDITIONS: Borrower to route entire income through their OD account. No additional facility to be sanctioned if enjoying facility under Loan to Professional & Self Employed Persons. Inspection of securities once in a year Vehicle / property mortgaged should be got insured. Request of Doctors for Car & Personal Loan may be considered subject to that total deduction should not exceed 70 % of total income. It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-.

BARODA LOAN AGAINST SECURITIES

Loan against NSC PURPOSE: For Productive purpose For meeting the contingency needs of personal nature. ELIGIBILITY: Must be a Indian resident Age - 21 years and above LIMIT: Minimum Amount : Demand Loan Rs 3,000/Overdraft - Rs 20,000/Maximum Amount : For Public - No ceiling For Staff - 5 times of gross salary

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MARGIN: Public: 15 % of face value of NSC, if residual maturity period is less than 3 years. 20 % of face value of NSC, if residual maturity period is 3 years and above. Staff: 10 % of face value PROCESSING CHARGES: Rs 100/- flat + out of pocket expenses and actual conveyance charges + service tax REPAYMENT PERIOD: Loan: Option I Repayment in maximum 35 EMIs or within the maturity period, whichever is less. Option II Repayment of principal with interest, at the time of maturity out of proceeds of the instrument subject to a provision that in such cases the margin would be minimum 20 %. Overdraft: Till maturity of the security. In case of overdraft, if the credit turnover in the account in the preceding month is not adequate to cover the interest debited, and then interest debited in the account is to be recovered separately. SECURITY: Pledge of duly discharged NSCs / KVPs Lien on NSCs to be noted with the issuing Post Offices. OTHER CONDITIONS: NSCs of only 8th series are in vogue (since 8.5.1989). Memorandum for granting / recommending advance against Certificates should be prepared in the prescribed format Advance to third party is not permitted Advance should be disbursed only after getting the Banks lien noted.

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 A representative of the bank to be sent to Post Office for this purpose and the borrower must not be entrusted for this purpose in any circumstances. While fixing rate of interest weighted average method is to be applied in case of consolidated limit to one borrower against securities where interest rates are different It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-.

LOAN AGAINST KVP

PURPOSE: For Productive purpose For meeting the contingency needs of personal nature. ELIGIBILITY: Must be a Indian resident Age - 21 years and above LIMIT: Minimum Amount : Demand Loan Rs 3,000/Overdraft - Rs 20,000/Maximum Amount : Up to Rs 1.00 lac by Branch Head & Above Rs 1.00 lac by Regional Head.

MARGIN: Public: 15 % of face value of NSC, if residual maturity period is less than 3 years. 20 % of face value of NSC, if residual maturity period is 3 years and above. PROCESSING CHARGES: Rs 100/- flat + out of pocket expenses and actual conveyance charges + service tax

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REPAYMENT PERIOD: Loan: Option I Repayment in maximum 35 EMIs or within the maturity period, whichever is less. Option II Repayment of principal with interest, at the time of maturity out of proceeds of the instrument subject to a provision that in such cases the margin would be minimum 20 %. Overdraft: Till maturity of the security. In case of overdraft, if the credit turnover in the account in the preceding month is not adequate to cover the interest debited, and then interest debited in the account is to be recovered separately. SECURITY: Pledge of duly discharged NSCs / KVPs Lien on NSCs to be noted with the issuing Post Offices.

OTHER CONDITIONS: Memorandum for granting / recommending advance against Certificates should be prepared in the prescribed format._ Advance to third party is not permitted Advance should be disbursed only after getting the Banks lien noted. A representative of the bank to be sent to Post Office for this purpose and the borrower must not be entrusted for this purpose in any circumstances. While fixing rate of interest weighted average method is to be applied in case of consolidated limit to one borrower against securities where interest rates are different. It has been decided by our Bank to levy the charges for deviations (financial / non financial) @ Rs 3000/- per deviation with maximum of Rs 10,000/-.

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LOAN AGAINST FUTURE RENT RECEIVABLES UNDER COMMERCIAL REAL ESTATE (CRE) PURPOSE: General Business / Personal Needs (Except for speculative or any other activity restricted by RBI / Govt.) ELIGIBILITY: Owners who have let out or propose to let out their premises Wherein Bank has considered loan also against uncertain period of lease to reputed companies / MNCs / Banks / Multinationals / Public Sector Undertakings / Established Commercial Organizations , Institutions / Govt., Quasi Govt. Departments etc. Land lords of Bank of Baroda branch / office premises / residential flats, houses leased out to Bank of Baroda. Note: Exposure must be under commercial real estate segment as per extant guidelines of RBI / our Bank from time to time. LIMIT & MARGIN: 55 % of rent ( net of TDS, advance rent, security deposit ) due and receivables, for the unexpired certain period of lease and uncertain period of lease ( optional period ) subject to : Minimum amount of Loan : Rs 25 Lac For Landlord of Bank of Baroda Premises : No minimum limit Maximum exposure for Single Borrower : Rs 200 crores Maximum exposure for Group Borrower : Rs 250 crores Maximum eligible limit to be fixed considering the unexpired certain lease period and uncertain period of lease (Total option & certain period of maximum 10 years). For the period of computation of quantum of rent receivables, the option period to be taken into consideration should not exceed 1/3 rd of the certain period.

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REPAYMENT: Loan to be repaid in Equated Monthly Installments (EMI) with a maximum period of 10 years or unexpired certain period of lease and optional period of maximum next 10 years, whichever is less. The maximum rental period (including the certain and optional period) should be 10 years. Note: 1. Cash flow generation of the borrower is to be kept in mind, while proposing repayment schedule. 2. Ballooning / Accelerated repayment, if there is increase in lease rental during the tenor of loan. SECURITY: For Loans up to Rs 5.00 lacs Assignment of future rent receivables and third party guarantee acceptable to the Bank. Such loans should be classified as UNSECURED and sanction should be as per discretionary lending powers for unsecured advances. For Loans above Rs 5.00 Lacs In addition to the assignment of future rent receivables, mortgage of the leased properties plus any other acceptable security, value of which should be at least 1.25 times of the loan amount. [The valuation should be as per the current market price of the property, which is to be mortgaged, as assessed by a certified valuer]. Tripartite agreement amongst the Bank, the borrower and the tenant/ lessee providing for payment of the rent directly to the Bank. Note: In normal circumstances, mortgage of lease hold property (Whose future rent is assigned) will be taken as security. Authority for allowing deviations : if for exceptional reasons mortgage of leasehold property (whose future rent is assigned) is not available as security, other acceptable security may be taken with the approval of next higher authority, the value of which should be at least 1.25 time of the loan amount. Authority for allowing deviation ; Wherever Tripartite agreement is not feasible such as in the case of Government Department / Public Sector Units / Multinational Companies suitable letter from borrower for collecting rent directly to be obtained and lodged with lessee and undertaking from the lessee to pay such rent direct to Bank should be obtained.

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LEASE AGREEMENT: In case rent agreement is on leave and license basis, the agreement should be vetted by Zonal Legal Cell and their suggestions, if any, to be incorporated in the final leave and license agreement to be executed and registered. PROCESSING FEE (INCL. DOCUMENTATION FEE): Upto Rs 10 Crores: 0.50% of loan amount subject to Maximum of Rs 5 Lacs. Above Rs 10 Cores: 0.50% of loan amount subject to maximum of Rs 50 Lacs. The above charges are to be levied once only at the time of sanction and are exclusive of service tax. No processing charges for review of facility unless there is change in terms of original sanction. Actual stamp charges, valuation charges of Immovable property, insurance premium & legal opinion fee will be borne by the borrower and has to be recovered by the branches upfront. UPFRONT FEE: 0.50% of the loan amount subject to maximum of Rs 50 Lacs at the time of initial sanction. OTHER CONDITIONS: Certified copies of Lease Deed, Rent Agreement under Leave and License Scheme, Tripartite agreement, Letter of authority and undertaking from tenant / lessee to collect rent directly by the Bank are to be got vetted by the Legal Department / Banks Legal Advisor beside scrutiny of title to property for 30 years by Banks Legal advisor to be obtained . Zonal Authorities are empowered to relax rate of interest up to BPLR for the proposal falling up to their powers. Insurance for full market value of the property to be mortgaged with Bank Clause Takeover norms given in Domestic Loan Policy are not applicable for takeover of loan A/Cs of other Banks for this scheme. However following norms should be should be strictly adhered :

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 Accounts with existing lenders should be under the category of Standard Assets Satisfactory report from the existing Bank / FI and / or satisfactory conduct of account as per latest statement of account. There should not have been any reschedulement / restructuring in the account during last two years. Credit rating is to be carried out as per the extant guidelines of the Bank. Activity clearance is required and Zonal Head is authorized up to their DLP and likewise GM (Corporate) / ED/CMD for all other cases within their DLPs. Minimum FACR should be 1.25 times.

LOAN AGAINST FUTURE RENT RECEIVABLES UNDER NON COMMERCIAL REAL ESTATE (NON - CRE) PURPOSE: General Business / Personal Needs (Except for speculative or any other activity restricted by RBI / Govt.) ELIGIBILITY: Owners who have let out or propose to let out their premises to reputed companies / MNCs / Banks / Multinationals / Public Sector Undertakings /Established Commercial Organizations , Institutions / Govt., Quasi Govt. Departments etc. Land lords of Bank of Baroda branch / office premises / residential flats, houses leased out to Bank of Baroda. Note: Exposure must not be under commercial real estate segment as per extant guidelines of RBI / our Bank from time to time. LIMIT & MARGIN: 60 % of rent ( net of TDS, advance rent, security deposit ) due and receivables, for the unexpired certain period of lease and uncertain period of lease ( optional period ) subject to : Minimum amount of Loan : Rs 25 Lac For Landlord of Bank of Baroda Premises : No minimum limit

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 Maximum exposure for Single Borrower : Rs 200 crores Maximum exposure for Group Borrower : Rs 500 crores Maximum eligible limit to be fixed considering the unexpired certain lease period of next 10 years. REPAYMENT: Loan to be repaid in Equated Monthly Installments (EMI) with a maximum period of 10 years or unexpired certain period of lease, whichever is less.

Note:
1. Cash flow generation of the borrower is to be kept in mind, while proposing repayment schedule 2. Ballooning / Accelerated repayment, if there is increase in lease rental during the tenor of loan. SECURITY: For Loans up to Rs 5.00 lacs Assignment of future rent receivables and third party guarantee acceptable to the Bank. Such loans should be classified as UNSECURED and sanction should be as per discretionary lending powers for unsecured advances. For Loans above Rs 5.00 Lacs In addition to the assignment of future rent receivables, mortgage of the leased properties plus any other acceptable security, value of which should be at least 1.15 times of the loan amount. [The valuation should be as per the current market price of the property, which is to be mortgaged, as assessed by a certified valuer]. Tripartite agreement amongst the Bank, the borrower and the tenant / lessee providing for payment of the rent directly to the Bank. Note: In normal circumstances, mortgage of lease hold property (whose future rent is assigned) will be taken as security. Authority for allowing deviations : if for exceptional reasons mortgage of leasehold property (whose future rent is assigned) is not available as security, other acceptable security may be taken with the approval of next higher authority, the value of which should be at least 1.15 time of the loan amount.

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 Authority for allowing deviation ; Wherever Tripartite agreement is not feasible such as in the case of Government Department / Public Sector Units / Multinational Companies suitable letter from borrower for collecting rent directly to be obtained and lodged with lessee and undertaking from the lessee to pay such rent direct to Bank should be obtained.

LEASE AGREEMENT: Loan should be given only when properties are leased under registered lease deeds. (Registration of lease deeds is compulsory) In case rent agreement is on leave and license basis, the agreement should be vetted by Zonal Legal Cell and their suggestions, if any, to be incorporated in the final leave and license agreement to be executed and registered. PROCESSING FEE (INCL. DOCUMENTATION FEE): Upto Rs 10 Crores: 0.10% of loan amount subject to Maximum of Rs 1Lacs. Above Rs 10 Crores: 0.10% of loan amount subject to maximum of Rs 20 Lacs. The above charges are to be levied once only at the time of sanction and are exclusive of service tax. No processing charges for review of facility unless there is change in term of original sanction. Actual stamp charges, valuation charges of Immovable property, insurance premium & legal opinion fee will be borne by the borrower and has to be recovered by the branches upfront. UPFRONT FEE: 0.50% of the loan amount subject to maximum of Rs 50 Lacs at the time of initial sanction.

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OTHER CONDITIONS: Certified copies of Lease Deed, Rent Agreement under Leave and License Scheme, Tripartite agreement, Letter of authority and undertaking from tenant / lessee to collect rent directly by the Bank are to be got vetted by the Legal Department / Banks Legal Advisor beside scrutiny of title to property for 30 years by Banks Legal advisor to be obtained . Zonal Authorities are empowered to relax rate of interest up to BPLR for the proposal falling up to their powers. Insurance for full market value of the property to be mortgaged with Bank Clause Takeover norms given in Domestic Loan Policy are not applicable for takeover of loan A/Cs of other Banks for this scheme. However following norms should be should be strictly adhered : Accounts with existing lenders should be under the category of Standard Assets Satisfactory report from the existing Bank / FI and / or satisfactory conduct of account as per latest statement of account. There should not have been any reschedulement / restructuring in the account during last two years. Credit rating is to be carried out as per the extant guidelines of the Bank. No activity clearance is required Minimum FACR should be 1.15 times.

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CHAPTER-5

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RESEARCH METHODOLOGY
To study consumer trends, behaviour, preferences and level of satisfaction in Airtel communication Ltd. The study was conducted in Guwahati, Assam with sample size of 45 and sample units were suppliers and Consumer of mobile connection There have been two sources of information collected: a) Primary Sources I have met 45 retailers of the Airtel of the company across Guwahati, Assam and have been able to get first hand information regarding the product, its features and the buying patterns of the product. Their input has been valuable. Also I have met consumer who are using Airtel connection and tried to get information what they feel about the product. b) Secondary Sources Secondary source has played a vital role to play in this report. A good amount of data has been collected from various published articles and reports found in magazines and journals. Another vital source has been the Internet and particularly the companies own website. SAMPLE DESIGN Area of Sample: The areas covered up in this survey was GAUHATI, ASSAM Selection of units under study Sampling Units from guwahati were suppliers and Consumer of mobile connection Source list (Sampling Frame) SUPPLIERS: 30 CUSTOMERS: 15 Sample size: 45 Sampling Procedure: Probability Sampling (Simple Random Sampling)

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SWOT ANALYSIS
The Bank has formulated all the schemes and branches of Bank of Baroda is financing based on the eligibility criteria & other terms and condition. I have studied about the slippages in the retail segment and come to know that there are various reason for slippages of account to NPA category. The main reasons are: Lack an Assessment of Borrowers eligibility in some cases. Continuous increase in ROI. Lack of proper monitoring from very beginning. Fraud.

There are various tools in Bank of Baroda & in banking industry in India to must the slippages. Some of the suggested means of prevention of slippages & recovery as under:(I) Early Recognition of the problem:

Recognize the problem early: Invariably, by the time banks start their efforts to get involved in a revival process, its too late to retrieve the situation - both in terms of rehabilitation of the project and recovery of banks dues. Identification of weakness in the very beginning (i.e., when the account starts showing first signs of weakness regardless of the fact that it may not have become NPA) is imperative. Assessment of the potential of revival may be done on the basis of a techno economic viability study. Restructuring should be attempted where, after an objective assessment of the viability and promoters intention (and his stake), banks are convinced of a turnaround within a scheduled timeframe. In respect of totally unviable units as decided by the bank/consortium, it is better to facilitate winding up/selling of the unit early, so as to recover whatever is possible through legal means before the security position becomes worse. Recourse to the new ordinance: The Government of India has promulgated an ordinance on June 21, 2002, called The Securitization and Reconstruction of financial Assets and Enforcement of Security Interest Ordinance, 2002 to facilitate foreclosure of financial assets. In respect of totally unviable units as decided by the bank/consortium,
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action under this ordinance may be initiated without any loss of time. Banks are also strongly encouraged to take immediate recourse to this legal remedy where they encounter malfeasance on the part of promoters/borrowers. Early Alert System: The strategy for management of NPAs may be governed by the circumstances connected to each individual case. Generally, the NPA is more likely to be resolved in terms of recovery if the company is in operation. For this to be effective there must be a system of identifying the weakness in accounts at an early stage. Banks may put in place an Early Alert system that captures early warning signals in respect of accounts showing first signs of weakness. Under the Early Alert system, for internal monitoring purpose, banks may designate a time limit for overdue accounts to determine the threshold for a proactive intervention - well before the account becomes NPA. This is to enable a bank to assess whether the default is due to some inherent weakness or due to a temporary liquidity or cash flow problem, and accordingly calibrate its response. For example, where there is a default in an account for 30 days, it may be shifted to a special category. Out of the accounts, ones that show promise may be considered for granting incremental facility for specific purposes, such as for capital expenditure, by ensuring strictest possible end use of the money. All the accounts displaying unsatisfactory features/early warning signals should be put under potential NPA list for follow up and time bound action to prevent their slippage. The account may be classified as potential NPA on account of one or more of the following illustrative list of features even though the account may be regular: Delay in submission of stock statement / other control statements / financial statements. Return of cheques issued by borrowers. Devolvement of DPG installments and non-payment within a reasonable period Frequent devolvement of LC and non-payment within a reasonable period. Frequent invocation of BGs and non-repayment within a reasonable period. Return of bills / cheques discounted. Non-payment of bills discounted or under collection. Poor financial performance in terms of declining sales and profits, cash losses, net losses, erosion of net worth etc.

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 Incomplete documentation in terms of creation / registration of charge / mortgage etc. Non-compliance of terms and conditions of sanction. SUGGESTED MEANS FOR RECOVERY: Implementation of effective credit monitoring system. Effective use of SARFAESI ACT Attachment of salary through court Persuasion/ follow-up of borrower Compromise. Restructuring

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CHAPTER-6

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CONCLUSION

From this 30 days experience in Bank of Baroda, I got good exposure about what really the corporate life is about. I fell honoured that I have worked with such experienced professionals. All these 30 days were full of events, full of learning, and most importantly full of professional working. The Bank shall continue its endeavour to enhance its shareholders value by protecting their interest by ensuring performance at all levels, and maximizing returns with optimal use of resources in its pursuit of excellence. The Bank shall comply with not only the statutory requirements, but also voluntarily formulate and adhere to a set of strong Corporate Governance practices. The Bank believes in setting high standards of ethical values, transparency and a disciplined approach to achieve excellence in all its sphere of activities. The Bank is also committed to follow the best international practices. The Bank shall strive hard to best serve the interests of its stakeholders comprising shareholders, customers, Government and society at large.

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BIBLIOGRAPHY
Website http://www.bankofbaroda.com http://en.wikipedia.org/wiki/Bank_of_Baroda http://www.scribd.com Books Accounting for Management: Cost & Management accounting:

N.P. Srinivasan & M. Sakthivel Murugan Ravi M. Kishore

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Financial Management: Short cut BoB: Bank of Baroda

Prasannachandra

w.e.f : With Effect From NSC : National Savings Certificate DD : Demand Draft

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