RETAIL LENDING

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Fees for Field credit investigation for Address Verification within the city including NCR
Region upto _____________ radius with reference to passport/voter ID/ration
card/PAN/Telephone bill/water bill/tax paid receipts - Rs.50/- (Residence / Business separately for each verification. Answer: 40 kms
Whenever, branch sanctions Retail Loans exceeding _____________ in a month in any one
Retail Scheme (Excluding loans granted under Tie-up arrangements) authorization from the
Circle Head is necessary. Answer: 25 numbers
A minimum of ___________ % of total marks to be secured by the prospective borrower to
be eligible for loan under retail lending schemes. Relaxation in the qualifying marks may be
considered up to a ceiling of ________ only (of the total marks), very selectively by the next
higher authority. Answer: 70% // 60%
The Prepayment penalty in Housing loan fixed rate scheme shall be accounted under
___________ (Interest Collected / Commission). Answer: Commission as it is treated as
other income.
Cut-off limit for forwarding copies of application / credit report to Circle has been enhanced to
Rs.5 lacs for all branches including VLB / ELB. Circles apart from ensuring prompt
submission and a diligent review of the related matters, should call for at least ___________ of
credit reports from each of the branches from the sanctions reported and subject them for a
meticulous review. Answer: 10%
Vehicles which are not older than ______ month/s from the date of their purchase / first
registration can be treated as new vehicle and the same can be financed on the terms and
conditions as applicable for purchase of brand new vehicles. However, in all such cases, our
borrower should be the first transferee. Answer: 1 month
No valuer in our panel can be entrusted with valuation assignments relating to a particular
branch continuously for more than __________ years. Answer: 5
Circle Head and above authorities at HO are authorized to permit reimbursement in Housing
Loan within their delegated sanctioning powers not exceeding 25% of the
_____________(Loan amount / Project Cost / Expenditure incurred in the previous 3
months) Answer: Loan amount.
The In Principle Sanction (Housing Loan) IPS-HL is valid for _______ months. Answer: Six.
For processing the documents and giving the IPS-HL the bank will charge a reasonable amount
of ______________ per proposal & it be paid up front. Answer: Rs.500/If the prospective borrower is unable to finalize the property and requests further time, the
IPS-HL may be extended selectively upto a further period of ______________ months by
collecting additional processing charges of ___________ upfront which is nonrefundable.
Answer: three // Rs.500/Which of the following is / are correct in the matter of extending Housing Loan to a borrower
aged more than 55 years (a) The borrower may avail the loan jointly with the earning member/s
of the family/close relative who is having sufficient repaying capacity subject to perfection of
security OR offer adequate collateral security (b) Margin - 25%. (c) Obtaining clearance from
the next higher authority. (d) All the above. Answer: (d)
Housing Loan for repairs/renovation _____ of the project cost - maximum of _________for
all areas.(Cir 232/2013) Answer: 75% // Rs 15 lacs.

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14. Maximum quantum of loan under DIR is ________________ For SC/ STs, Housing loans
under DIR scheme can be given up to a maximum of ___________ only. Answer:
Rs.15,000/- // Rs.20000/-.
15. Maximum Quantum of loan under DRI Scheme for Solar Home Lighting System is
_______________ per unit with _____________ as margin. Answer: 15000/- // Nil.
16. Differential Rate of Interest: Branches can assist the handicapped for acquiring aids,
appliances and equipments (needed especially by students for pursuing studies and vocational
training), Braille typewriters for blind to the extent of their actual cost but not exceeding
_____________ under DRI scheme. The assistance so given is independent of productive loan
limit of _____________ eligible under the DIR scheme. Answer: Rs.5000/- // Rs.15000/17. A person above 55 years of age, wants to buy a second housing unit (house is 15 years old) by
availing a Housing loan of Rs.19.95 lacs. Margin for this loan would be __________%.
Answer: 25%. (Even if loan is > Rs.20 lacs margin would be 25%). Old house means
house older than 10 years. Date of Birth of house is the date of approved plan.
18. In the case of construction of a house, repayment of HL should start one month after the
completion of the house or _________ months from the date of first disbursement whichever
is earlier. Answer: 18 months.
19. The maximum repayment period for housing loans is _______ years. With extension of
repayment period, the maximum age of the borrower within which the loan should be repaid
should not exceed ______ years. Answer: 30 // 70
20. In the case of new accounts where salary account is stipulated as a condition, branch to ensure
credit of at least _____ month's salary of the borrower to his SB account before grant of loan.
Answer: One
21. As per NRI Housing Loan Scheme, maximum loan quantum is __________ of annual gross
income subject to NTH of _________ after proposed EMI and meeting the margin
requirements (Cir 602/2013) Answer: Four Times // 40%.
22. Housing Finance to the NBFC - HFCs (regulated by the NHB), can be provided by the Bank,
upto ___________times of their NOF. This restriction is given by ________. Answer: 16
times / NHB
23. Under the Rajiv Rinn Yojana for Housing the Urban Poor the interest subsidy will be
______________ % p.a. on interest charged on the admissible loan amount, over the full
period of the loan for construction or acquisition of a new house. Answer: Five.
24. NTH after meeting the proposed EMI under teacher loan should be _____________ % of
the gross salary. Answer: 30
25. Minimum average net take home salary for the last three months, of the borrower after meeting
the EMI should not be less than ___________ % under Canara Budget loan scheme for
salaried class. Answer: 40%
26. Which of the following is true? (a) Sanctioning Authority for loan to our bank employees for
purchase of books under modified Canara Budget Scheme is Branch - in - Charge. (b) The
books should be hypothecated to our bank. (c) The maximum repayment period for this book
loan is as applicable to Canara Budget (Salaried class) i.e.48 EMIs. Answer: True // Not true
// Not true. It is 24 months only.
27. Repayment period for Canara Budget for non salaried class: ___________ equated monthly
installments. Answer: 36
28. No loans to be granted to partnership / proprietorship concerns against the primary security of
shares and debentures. True or false? Answer: True.
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29. The Canara Jeevan scheme is meant for financing Senior Citizens who have no other source of
income, to meet their sustenance and also some of the genuine personal requirements. Senior
Citizen means a person who is above ________ (55 // 58 // 60 //65) years of age as on the
date of loan application. Answer: 60
30. Which of the following properties is/are acceptable under Canara Jeevan loan scheme?
(a) Commercial property.
(b) Self acquired and self-occupied as permanent primary residence.
(c) The residual life of the property less than 20 years.
(d) Flats the age of the flat more than 10 years.
Answer: (b) + Residual life at least 20 years/Flat not more than 10 years old.
31. In Canara Jeevan, Senior citizens are eligible for a right viz _____________ (Right of
Recompense/ Right of Subrogation / None of these) . It means, after completion of
documentation 3 business days are given to senior citizen to cancel the transaction.
Answer: None of these. It is Right Of Recession.
32. Sanction of education loan for proposals for admissions got under Management Quota are
accorded by the ____________. The maximum amount of capitation fee permissible for Mgt
quota admissions is ________. Answer: Circle-Head. // Nil.
33. Age Limit for Vidyasagar Education Loan is ____________ years. The _________(R /SU / U
/ Metro) branches to adhere to service area norms. Answer: No age limit //rural& semi
urban.
34. Vidyasagar Education Loan Scheme: Financing Caution Deposit/ Building Fund/refundable
deposit can be permitted up to _________ % of the total tuition fees for the entire course can
be financed. Answer: 10%
35. Employed persons whose annual income is less than ______________ may be given
Education loans depending upon individual requirements and merits. Answer: Rs.7200/- (If >
Rs.7200/-, loans can be granted provided they do not get salary during the period of
study.)
36. ROI for Unsecured advances: In respect of unsecured advances of _______________ and
above, additional rate of ________ % may be charged over and above the applicable rate even
if it exceeds the maximum rate. Answer: Rs.1.00 crore // One per cent.
37. Takeover of liabilities from co-operative societies: A valid EMT should be created within
___________ of clearance of the liability with the society by us. Answer: 10 days.
38. Takeover of Canara Trade Loans: A valid EMT should be created within _______ of clearance
of the liability with other bank by us (concerned branch of our Bank). Answer: 10 days.
39. Guidelines regarding Mortgage of lease hold property for HL: (RL manual): Lease hold right
with a minimum unexpired period of not less than ______ only can be accepted.
Answer: 90 years.
40. Purchase of Ready Built House/Flat: It is absolutely essential for the branches to ensure
that the original documents registered shall be lodged at the branch concerned. For this
purpose, branches should pursue the matter with the borrower / Registering Authority to
ensure receipt of original registered sale deed within a period of _______. Answer: 3 months.
41. Gold Loans to Employees to meet escalation in the cost of construction of House: Loan
Quantum: 10 months gross or ______________ whichever is less. Answer: Rs.15000/42. Gold Loans to Employees to meet escalation in the cost of construction of House: Loan can be
availed only after _________ % of housing loan is utilized but not fully utilized. Answer: 95%
43. Gold Loans to Employees to meet escalation in the cost of construction of House: The Net
take home pay after deduction of installments towards PF, VPF, SWF, Thrift society, FA,
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LHV, etc (including proposed GL) should not be less than _________ % of the gross salary.
Answer: 5%
Gold Loans to Employees to meet escalation in the cost of construction of House Repayment:
_______ EMIs. No holiday is permitted. Repayment will commence after one month of
granting the loan. Part redemption permitted only once after clearance of _____________ %
of the limit. Answer: 60 // 50%
Monitoring and Reporting of Housing Loans: (From RL Manual): The property mortgaged to
the bank should be inspected within __________ month from the date of disbursement in the
case of purchase of a ready built house / flat. House property should be inspected once in
___________. But this may be waived where the repayment is regular as per sanction terms.
Tax paid receipt should be verified once in _______. Answer: one // a year // a year.
Risk weight for Housing Loans upto Rs.20 lakh with a LTV Ratio upto 90% is _____________
Answer: 50%
Risk weight for restructured Housing Loans will be _____________ more than normal risk
weight. Answer: 25%
Risk weight for Housing Loans (Above Rs.20.00 lakh upto Rs.75 lakh) with a LTV Ratio upto
80% is _____________ Answer: 50%.
Risk weight for Housing Loans (Above Rs.75 lakh) having LTV upto _____________ Answer:
75%.
In CANARA BUDGET delegated power of In charge, Mgr/SM of VLBs/ELBs: Answer:6
months Gross Salary Max 3 lakh
In CANARA BUDGET delegated power of CM-VLB;/DM-CO-CAC: Answer: 10 months
gross Max 5 lacs
In CANARA BUDGET delegated power of - AGM-VLB;/AGM-CO-CAC: Answer:10
months gross max 6 lac
In CANARA BUDGET delegated power of - DGM/DGM-CO-CAC: Answer:15 months
Gross max 8 lac
In CANARA BUDGET delegated power of GM-CO-CAC : Answer: 15 months gross
Max 10 lakhs
Canara rent Sanctioning powers CM/DMCOCAC - Answer: 50 Lac
Canara rent Sanctioning powers AGM/AGMCOCAC- Answer:100 Lacs
Canara rent Sanctioning powers DGM/DGMCOCAC- Answer:200 Lacs
Canara rent Sanctioning powers GM COCAC(Non Metro)- Answer:500 Lacs
Canara rent Sanctioning powers GMHOCAC- Answer:750 Lacs
Canara rent Sanctioning powers EDCAC- Answer: Above 1000 Lac,
Maximum loan that can be permitted under CANARA HOME PLUS- Answer: Rs. 25 lacs
Under CANARA HOME PLUS LTV ratio shall not be more than: Answer: 75%
Maximum loan that can be permitted under CANARA LAP- Answer: Rs. 10 CR.
Eligible Quantum of Loan permitted under CANARA LAP- Answer: 60% of the market
value of the property
Nature of Loan permitted under CANARA LAP- Answer: Demand / Term loan for
salaried /non-salaried individuals, Demand/Term Loan / Overdraft facility for other
than individuals for business purpose
Maximum loan that can be permitted under CANARA CONSUMER LOAN- Answer: Rs. 1
lac.

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67. Need based credit facilities can be considered by respective sanctioning authorities wherever
Credit card overdues are below Rs._________ as per CIBIL report and beyond that subject to
preclearance by the next higher authority Ans: Below Rs.25000/- (cir 2/2013)
68. Branches/Retail Asset Hubs (RAH) shall take balancing of mortgage papers including that of
closed loans and advances which are not yet delivered to mortgagors, once in a half year i.e., as
on _______________every year and also during Risk Based Internal Audit (RBIA).(Cir
10/2013) Ans: 20th of February and August
69. Existing housing loan borrowers are permitted to switch over from higher rates of interest to
the current card rates on payment of switch over fee of ______ % of the outstanding liability,
(Cir30/2013) Ans: 1%
70. Repayment of Canara Pension Loan (Cir 68/2013): To be repaid in ______ EMIs if the
pensioner is below 65 years and with in _______ EMIs if the pensioner is above the age of 65.
Ans: 60, 48
71. If the total number of Housing units is more than two, the exposure for the third unit Onwards
to the same party has to be treated as _______________exposure as the borrower may be
renting these housing units and the rental income would be the primary source of repayment.
(Cir 109/2013) Ans: CRE (commercial real estate)
72. As per IBA s Revised Model Educational Loan scheme where the admission is purely based
on the marks scored in qualifying examination IBA had advised that the banks may fix cut-off
marks (percentage) for loan eligibility. What is the percentage of cut off marks for General
Merit Students, SC/STs, Girls (Cir 120/2013) Ans: 60%, 55%, 50%.
73. As per Damodaran Committee Recommendations, Circles to ensure that minimum ________
% of the sanctions/ disbursement under Education loan accounts are to be disbursed to
students coming from rural areas(Cir 120/2013) Ans: 30%
74. What is the maximum quantum of Canara Home Loan Plus (Cir 498/2013) Ans: 10 months
gross salary subject to a maximum of Rs.25.00 lakhs.. For non salaried, 75% of 3 years
average gross income of the applicant subject to a maximum of Rs.25.00 lakhs
75. In case of both salaried class and non-salaried class, combined liability under existing HL and
proposed Canara Home Loan Plus loan shall not exceed _____% of the value of the
property at the time of sanction Ans: 75% (LTV not more than 75%)
76. What is the repayment period of Canara Home Loan Plus: Ans: To be repaid in 120 EMIs or
left over repayment period for the existing Housing Loan whichever is less. However,
the entire loan shall be repaid before the borrower attains the age of 70 years.
77. For salaried class, what is the maxium quantum of Canara Loan Against Property: (Cir
122/2013) : Ans: 60% of the market value of the property supported by valuation report
from 2 approved independent valuers (valuation which is lower of the 2 will be reckoned
for computation of limit)..The net take home salary shall be 40% after all the deductions
including the proposed EMI. The maximum loan quantum shall not exceed 10 Crores.
78. CANARA LAP quantum for Non salaried Class is: Ans: 3 years gross annual income, The
maximum loan quantum shall not exceed 10 Crores.
79. What is the repayment period norm for Canara LAP : Ans: Working Capital: 12 months
renewal annually. Demand Loan: in 36 months; Term Loan Max.120 months.
80. During the tenure of the Canara LAP, valuation of the mortgaged property shall be done once
in ______ years (Cir 122/2013) Ans: 3 years
81. What are the processing charges on Canara LAP: Ans: 0.50% of the loan amount with a
Maximum of 20000/-. Maximum 2000/- per renewal for overdraft facility.
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82. What is Prepayment of penalty for takeover of Canara LAP loan by other banks: Ans: 1% of
outstanding liability
83. Online Loan Application & Tracking System for Education/ Agriculture Loans Branch has to
ensure that all Education Loan applications are disposed as per norms ie with in a period of
_________ (Cir 132/2013): Ans: 1 month
84. A minimum of ________ of total marks to be secured by the prospective borrower to be
eligible for recommending ROI concession Ans: 80%
85. Canara Vehicle Loans can be sanctioned by branches where RAH is functioning provided that
branch NPA level under Canara Vehicle Loans is ________ % (Cir 159/2013) Ans: Below 4%
86. For referring Housing Loan Proposal to our Bank, bank is now paying commission of 0.25% of
HL amount with maximum of Rs.50,000/- per HL to Builders having tie up arrangements with
our Bank. This is applicable only if minimum _____ housing loans or minimum Rs.________
sanctioned and disbursed in that project of builder (Cir 160/2013) Ans: Three, Rs.1.00 crores
87. Model Loan Scheme for Vocational Education and Training What is the repayment period
(Cir 163/2013) Ans: Loan upto Rs.50,000/-: 2 years, Loan upto Rs.1 lakh: 2 to 5 years,
Loan upto rs.1.5lakh: 3 to 7 years.
88. What are the service charges (referral fees) for sourcing business under Canara Vehicle Loans
(Car Loans) to Car dealers and to Dealers sales executives for sanctioned proposals(Cir
161/2013) Ans: @ 1% of loan amount to car dealers and Rs.1000/- to dealers sales
executives.
89. Manager of Small/medium/Large branches can sanction Canara Budget loan of : _____
months salary with maximum of Rs._______ (Cir115/2013) : Ans: 6 months salary with
maximum of Rs.3 lakhs.
90. Manager in charge of Large Branch / Sr Manager of ELB/VLB can sanction Canara Vehicle
Loan of Rs.______ (Cir 115/2013) Ans: Rs.20 lakhs
91. Housing Loans sanctioned by Banks for housing projects exclusively for the purpose of
construction of houses to economically weaker sections and low income groups, the total cost
of which does not exceed Rs.10 lakhs per dwelling unit will quality for Priority Sector Status.
For the purpose of identifying the economically weaker sections and low income groups, the
family income limit of Rs.________ per annum, irrespective of location is prescribed: Ans:
Rs.1,20,000/92. Bank loans to Housing Finance Companies (HFCs) for on-lending for housing up to
Rs.________ per borrower, may be included under the priority sector, provided the interest
rate charged to the ultimate borrower by the HFC does not exceed two percentage points
above the lowest interest rate of the lending bank for housing loans, Ans: Rs.10 lakhs
93. In order to prevent excessive leveraging, RBI had issued guidelines on, Housing loans by
commercial banks:The LTV ratio in respect of housing loans should not exceed______ % For
small value housing loans i.e. for loans below Rs. 20 lakh the LTV ratio should not
exceed_____ %. Ans: 80%, 90%
94. In respect of Car loans to salaried class of borrowers, where there is no salary tieup, Credit
Approval Committee headed by Circle Head is empowered to permit lowering of minimum
eligible quantum of Gross Salary from the current level of Rs.4.80 Lacs to ___________,
subject to conditions(Cir 666/2013): Ans: Rs.3.00 Lacs
95. In respect of branches having NPA level of_________, Circle Head may selectively permit
such branches to exercise powers for sanctioning loans under the above scheme. Ans. 4% and
above
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96. Minimum loan amount under Premium Housing loan scheme is: Ans. Rs.1 Crore and above
(5 times of the Gross Annual Income)
97. Maximum loan quantum under Doctors Choice is____________. Ans: Rs.5 crores (Sub
ceiling for working capital increased to Rs.50 lakhs-20% of Maximum Limit)).
98. Maximum quantum of loan under Canara Jeevan for flat is ____________. Ans:Rs.25 lakhs.
99. Credit Information Report (CIR) from CIBIL is compulsory for Retail Lending loans Ans:
Priority Rs.2 lacs and above, NP Rs.1 lakh and above.
100. The rating sheets are applicable for all retail lending loans other than, __________. Ans:
Canara Pension, Canara Trade, Canara Rent, Canara Mortgage.

~~~WISH YOU ALL THE BEST ~~~

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